Department of Commerce, Community, and Economic Development
Alaska Oil and Gas Conservation
Commission
HOME
EVENTS
DATA
Data List
Drilling
Production
Orders
Data Miner
Document Search
REPORTS
Reports and Charts
Pool Statistics
FORMS
LINKS
Links
Test Notification
Data Requests
Regulations
Industry Guidance Bulletins
How to Apply
ABOUT US
History
Staff
HELP
Loading...
The URL can be used to link to this page
Your browser does not support the video tag.
Home
My WebLink
About
206-137
1. Type of Request: Abandon Plug Perforations Fracture Stimulate Repair Well Operations shutdown Suspend Perforate Other Stimulate Pull Tubing Change Approved Program Plug for Redrill Perforate New Pool Re-enter Susp Well Alter Casing Other: Suspension Renewal 2. Operator Name: 4. Current Well Class: 5. Permit to Drill Number: Exploratory Development 3. Address:Stratigraphic Service 6. API Number: 7. If perforating:8. Well Name and Number: What Regulation or Conservation Order governs well spacing in this pool? Yes No 9. Property Designation (Lease Number): 10. Field: 11. Total Depth MD (ft): Total Depth TVD (ft): Effective Depth MD: Effective Depth TVD: Junk (MD): 8,990 NA Casing Collapse Conductor Surface 2,480psi Production Intermediate Liner Packers and SSSV Type: Packers and SSSV MD (ft) and TVD (ft): 12. Attachments: Proposal Summary Wellbore schematic 13. Well Class after proposed work: Detailed Operations Program BOP Sketch Exploratory Stratigraphic Development Service 14. Estimated Date for 15. Well Status after proposed work: Commencing Operations: OIL WINJ WDSPL Suspended 16. Verbal Approval: Date: GAS WAG GSTOR SPLUG AOGCC Representative: GINJ Op Shutdown Abandoned Contact Name: Contact Email: Contact Phone: Authorized Title: Conditions of approval: Notify AOGCC so that a representative may witness Sundry Number: Plug Integrity BOP Test Mechanical Integrity Test Location Clearance Other Conditions of Approval: Post Initial Injection MIT Req'd? Yes No APPROVED BY Approved by: COMMISSIONER THE AOGCC Date: Comm. Comm. Sr Pet Eng Sr Pet Geo Sr Res Eng NA NA 2,391', 2,441', 2,449', 7,200', 7,800', 8,400' NA 907-564-5005 ryan.thompson@hilcorp.com Operations Manager NA 3-1/2" Killstring Perforation Depth MD (ft): NA 76 16" 10-3/4"2,570 5,210psi2,0722,541 115 115 9.2# / L-80 TVD Burst 2,000 MD Hilcorp Alaska, LLC Length Size Proposed Pools: 3,912 2,391 1,985 NA Unknown Same STATE OF ALASKA ALASKA OIL AND GAS CONSERVATION COMMISSION APPLICATION FOR SUNDRY APPROVALS 20 AAC 25.280 ADL0355023, ADL0355024, ADL0373301, ADL0390615 206-137 OLIKTOK POINT I-1 3800 Centerpoint Dr, Suite 1400 Anchorage, AK 99503 50-029-23324-00-00 *EXPLORATORY PRESENT WELL CONDITION SUMMARY AOGCC USE ONLY Tubing Grade: Tubing MD (ft):Perforation Depth TVD (ft): Ryan Thompson Subsequent Form Required: Suspension Expiration Date: Will perfs require a spacing exception due to property boundaries? Current Pools: MPSP (psi): Plugs (MD): 17. I hereby certify that the foregoing is true and the procedure approved herein will not be deviated from without prior written approval. Authorized Name and Digital Signature with Date: Tubing Size: Form 10-403 Revised 06/2023 Approved application valid for 12 months from date of approval.Submit PDF to aogcc.permitting@alaska.gov 325-385 By Gavin Gluyas at 1:57 pm, Jun 26, 2025 Digitally signed by Sara Hannegan (2519) DN: cn=Sara Hannegan (2519) Date: 2025.06.26 16:30:18 - 05'00' Sara Hannegan (2519) MGR30JUN2025 10-404 within 12 months of suspension renewal in 5 years. A.Dewhurst 17JUL25 * Approved suspension renewal for 60 months from suspension approval date. * Witnessed inspection will be required and subsequent 10-404 within 12 months of suspension renewal after 5 years. DSR-7/16/25 July 31, 2030 *&: Jessie L. Chmielowski Digitally signed by Jessie L. Chmielowski Date: 2025.07.18 08:45:25 -08'00'07/18/25 RBDMS JSB 071825 Date Inspected: Inspector: Operator: Well Name: Oper. Rep: PTD No.: Oper. Phone: Location Verified? Oper. Email:steve.soroka@hilcorp.com If Verified, How? Onshore / Offshore: Date AOGCC Notified: Suspension Date: Type of Inspection: Sundry No.: Wellbore Diagram Avail.? Photos Taken? Well Pressures (psi): Tubing 0 IA 0 OA 0 Condition of Wellhead: Comments: Attachments: Insp. Suprv Comm IA and OA gate valve pins are sheared. Operations fixed and placed gauges on IA and OA casing valves post inspection. Pictures included. WBS Pictures Area map Yes Yes Offshore 05/09/25 Subsequent The wellhead location was verified using an as-built drawing. The back-pressure valve and VR plugs were pulled to verify pressures. The wellhead looked to be in good working condition. There was no cellar as the well is in a well bay. The sign appeared to have all the correct information. The surrounding area in the well bay was clean and clutter-free.. STATE OF ALASKA ALASKA OIL AND GAS CONSERVATION COMMISSION Suspended Well Inspection Report Kam St John 05/17/25 Yes Steve SorokaOLIKTOK POINT I-1 9078308976 Follow Up Actions Needed: Hilcorp Alaska, LLC 206-137 Condition of Surrounding Surface Location: 12/31/06 306-397 REVIEWED BY: Other (specify in comments) PLB 12/2014 OP I-1 Suspended Well Inspection Form 2025 Nikaitchuq Field Well: OP I-1 Last Completed (Suspended): 12/31/2006 PTD: 206-137 API #: 50-029-23324-00-00 Casing 16" 16" Cement plug Size ID Top Btm 1 16"15.25" Surface 115' 10-3/4"9.95" Surface 2,541' 10-3/4" 3-1/2"2.992" Surface 2,000' Cement Plug #4 2,449' to 3,041' No Top MD TVD Inc ID OD 1 2,441' 2,011' 60 NA ? Cement Plug #3 7,200' to 7,800' Cement Plug 7,800' to 8,400' Cement Plug #1 8,400' to 8,990' Driven Item JEWELRY DETAIL Composite EZSV Plug 10-3/4"13-1/2" hole, 312 bbls 10.7# lead slurry, 1 bbls 15.8# tail slurry CASING DETAIL Surface Conductor Type 45.5#, L-80, BTC-M 65#, L-80 Est. Top @ 2,391' Schematic Suspended Injector Wt/ Grade/ Conn Kill String TUBING DETAIL 9.2# L-80 CEMENT DETAIL Cement Details Hole MD 115' 2,541' 70 degree inclination @ ~3,195' OP I-1 As Built Schematic 6-20-2025 Last edited by: DH 6/20/2025 Suspended Well Inspection Review Report Reviewed By: P.I. Suprv Comm ________ JBR 07/21/2025 InspectNo:susKPS250517192959 Well Pressures (psi): Date Inspected:5/17/2025 Inspector:Kam StJohn If Verified, How?Other (specify in comments) Suspension Date:12/31/2006 #306-397 Tubing:0 IA:0 OA:0 Operator:Hilcorp Alaska, LLC Operator Rep:Steve Soroka Date AOGCC Notified:5/9/2025 Type of Inspection:Subsequent Well Name:OLIKTOK POINT I-1 Permit Number:2061370 Wellhead Condition The wellhead location was verified using As-built. The BPV had been removed. The well head was in good condition, this well is in a well bay so no cellar Surrounding Surface Condition Well bay around well was clean Condition of Cellar N/A Comments Supervisor Comments Photos (3) Suspension Approval:Sundry Location Verified? Offshore? Fluid in Cellar? Wellbore Diagram Avail? Photos Taken? VR Plug(s) Installed? BPV Installed? Monday, July 21, 2025 9 9 9 9 9 9 9 9 9 MEU 2025-0517_Suspend_Oliktok_Pt_I-1_photos_ksj Page 1 of 2 Suspended Well Inspection – Oliktok Point I-1 PTD 2061370 AOGCC Inspection Rpt # susKPS250517192959 Photos by AOGCC Inspector K. StJohn 5/17/2025 2025-0517_Suspend_Oliktok_Pt_I-1_photos_ksj Page 2 of 2 STATE OF ALASKA ALASKA OIL AND GAS CONSERVATION COMMISSION Suspended Well Inspection Report Date Inspected: 09/20/10 Inspector: Bob Noble Operator: ENI Well Name: Oliktok Point I-1 Oper. Rep: Jack Keener PTD No.: 206-137 Oper. Phone: 670-8623 Location Verified? Yes Oper.Email: If Verified,How? Other(specify in comments) Onshore/Offshore: Onshore Suspension Date: 12/31/06 Date AOGCC Notified: 09/17/10 • Sundry No.: 306-397 Type of Inspection: Initial • Wellbore Diagram Avail.? Yes Well Pressures(psi): Tubing See notes Photos Taken? Yes IA See notes OA See notes SCANNED AUG 1 4 2015 Condition of Wellhead: The wellhead location was verified with the use of a as-built.We were unable to get wellhead pressures because the was a back pressure plug valve in the tubing and VR plugs in the IA and OA.The wellhead looked to be in good working condition. There was no cellar as the wellhead is in their"well bay". Condition of Surrounding Surface The condition around the well bay was good and clean. " Location: Follow Up Actions none Needed: Attachments: Photos(2) REVIEWED BY: Insp.Supry JC(2— Comm PLB 09/2010 2010-0920_Suspend_Oliktok_Point_I-1_bn.xlsx Nil ailliiiiw -- , ationir 44- • • $ .',:,. ,�'� a R °j / --".�rrw ' O • K • a 11 , . 611 `s W --.,.i..,.,. 7 _..... . . .,_ .; : , \ , . r v / ! .. ri i , / •,-. 0 r.+ y C7 } L 0 a M O ,..0O t ` ON w cn O O N : Q N r~ to v V1 A. A� ,_ J ON O. • • Image Project Wett History File Gover Page XNVZE This page identifies those items that were not scanned during the initial production scanning phase. They are available in the original fiile, may be scanned during a special rescari activity or are viewable by direct inspection of the file. - , ~ ~ Well History File Identifier organizing (done> ^ Two-sided II((IIIII II III II III ^ Rescan Needed III (I'll) II I(III III RE AN DIGITAL DATA OVERSIZED (Scannable) olor Items: ^ Diskettes, No. ^ M ps: Greyscale Items: ~ P~ ^ Other, No/'1"ype: Other Items Scannable by a Large Scanner rn U~ ~b ~..~ ^ Poor Quality Originals: OVERSIZED (Non-Scannable) ^ Other: ^ Logs of various kinds: NOTES: 66 1 / ^ Other:: BY: Maria Date: ~. I ` V ~ /s/ Protect Prvvfing III IIIIIIIIIII IIIII BY: Maria Date: ~ ~ ` ~ /s/ Scanning Preparation ~ x 30 = ~ ~Q + =TOTAL PAGES (Count does not include cover she t) BY: ~ Maria Date: /s/ Production Scanning Stage 7 Page Count from Scanned File: (count does include cover sheet) Page Count Matches Number in Scanning Preparation: ~ YES NO BY: _ Maria Date: ~ I ~ ~ ~ /s/ 1~~ j 4 r Stage 7 If NO in stage 1, page(s) discrepancies were found: YES NO BY: Maria Date: /s/ Scanning is complete at this point unless rescanning is required. II I II II lI I (Ill IIIII Rescanned IIIIIIIIIIIIII IIIII BY: Maria Date: /s/ Comments about this file: ~3 o~,,,.~~~k,a iiumiiiiiimiu 10/6/2005 Well History File Cover Page.doc OF � �\ I// �� THE STATE A ae a CI. A hC ��� �J \: d �_ 333 West Seventh Avenue "^% GOVERNOR SEAN PARNELI, Anchorage, Alaska 99501-3572 is-7.7flir Main: 907 279 1433 Or' ' ` ax. 907 2/6 7042 SCANS JUL 291014 James Wright Drilling & Completion Engineering Manager © / Eni US Operating Co. Inc. 4q. G. 3800 Centerpoint Drive, Suite 300 Anchorage, AK 99503 Re: Nikaitchuq Field, Schrader Bluff Oil Pool, OP-I l Sundry Number: 314-160 Dear Mr. Wright: Enclosed is the approved application for sundry approval relating to the above referenced well. Please note the conditions of approval set out in the enclosed form. As provided in AS 31.05.080, within 20 days after written notice of this decision, or such further time as the AOGCC grants for good cause shown, a person affected by it may file with the AOGCC an application for reconsideration. A request for reconsideration is considered timely if it is received by 4:30 PM on the 23rd day following the date of this letter, or the next working day if the 23rd day falls on a holiday or weekend. Sincerely, Cathy •. Foerster Chair DATED this day of April, 2014. Encl. RECEIVED 4 STATE OF ALASKA MAiZ 13 �.2014• ALASKA OIL AND GAS CONSERVATION COMMISSION APPLICATION FOR SUNDRY APPROVALS rC /-,4•g• 2020 MC 25.280 1.Type of Request: Abandon ❑ Plug for Redrill Perforate New Pool ❑ Repair Well❑ Change Approved Program ❑ Suspend ❑ Plug Perforations ❑ Perforate ❑ Pull Tubing 0 • Time Extension ❑ Operations Shutdown ❑ Re-enter Susp.Well 0 ' Stimulate ❑ Alter Casing ❑ Other: ❑ 2.Operator Name: 4.Current Well Class: 5.Permit to Drill Number. Eni US Operating Co.Inc. Exploratory 0 , Development ❑ 206-137 3.Address: Stratigraphic ❑ Service ❑ 6.API Number: 3800 Centerpoint Drive,Ste.300,Anchorage,AK 99503 50-029-23324-00-00 • 7.If perforating: 8.Well Name and Number. What Regulation or Conservation Order governs well spacing in this pool? Will planned perforations require a spacing exception? Yes ❑ No ❑ OP-I1 • 9.Property Designation(Lease Number): ;4 10.Field/Pool(s): 1 ADL 355023, 355024, 390615��3 3O? TF' Nikaitchuq Shrader Bluff 11. PRESENT WELL CONDITION SUMMARY Total Depth MD(ft): Total Depth TVD(ft): Effective Depth MDD((ft): Effective Depth Wl (ft): Plugs(measured): Junk(measured): t.8,990 3,912 v,21-111 / 3.f 2391 N/A Casing Length Size MD TVD Burst Collapse Structural Conductor 76 16" 115 115 Surface 2570 10.75" 2541 2072 5,210 2,480 Intermediate Perforation Depth MD(ft): Perforation Depth TVD(ft): Tubing Size: Tubing Grade: Tubing MD(ft): - - 3 1/2 L80 2,000 Packers and SSSV Type: Packers and SSSV MD(ft)and TVD(ft): N/A N/A 12.Attachments: Description Summary of Proposal Q . 13.Well Class aftelr.proposed work: — Detailed Operations Program Q • BOP Sketch Q • Exploratory d Wbb Stratigraphic❑ Development ❑ Service [ ] 14.Estimated Date for 19-May-14 15.Well Status after proposed work: tab Commencing Operations: Oil ❑ Gas ❑ WDSPL ❑ Suspended IA 16.Verbal Approval: Date: WINJ L ' GINJ ❑ WAG ❑ Abandoned ❑ Commission Representative: GSTOR ❑ SPLUG ❑ 17.I hereby certify that the foregoing is true and correct to the best of my knowledge. Contact James Wright Email James.Wright(a�enipetroleum.com Printed Name James Wright Title Drilling&Completion Engineering Manager Signature _..y _____ h nt 907-865-3321 Date 3/12/2014 COMMISSION USE ONLY Conditions of approval: Notify Commission so that a representative may witness Sundry Number: ` Plug Integrity ❑ BOP Test [/J Mechanical Integrity Test ❑ Location Clearance ❑ Other: Ai ?5-) /054 5br St- RBDMS MAY 1 0 2014 Spacing Exception Required? Yes ❑ No Subsequent Form Required: /0 — Lib 7- APPROVED BY Approved by: _ ;)-(//)('L---- COMMISSIONER THE COMMISSION Date: 4---/o __ f y t 1 / ' A //ti�ly 'Suis nFormane/ Form 10-403(Revi -d 10/2012) Appr li f0 is a 1 months from the d� oval. `�``�Attachments in Duplicate Eiriii Viiiit "I • Icv1AR1 3 2014 ' AOGCC 3800 Centerpoint Drive Suite 300 Anchorage,Alaska 99503 James Wright Phone(907)865-3321 Email: james.wright@enipetroleum.com March 12th, 2014 Alaska Oil and Gas Conservation Commission 333 West 7th Avenue, Suite 100 Anchorage,Alaska 99501 RE: Application for Sundry Approval for OP-I1 Rig Workover Dear Commissioners, ENI US Operating Co. Inc.hereby applies for a Workover Sundry for well OP-I1. L—,. p 0 .,,,,,,ti".. OP-I1 was drilled on September 29th, 2006 and suspended December 30, 2006. Well condition sundry was submitted by eni to AOGCC on November 12, 2010,and October 11th,2011. Next required inspection by Sept 30,2015. L.! (...);1( 4..-4 tot ru1,-=D -1 L a-( •S /J U .`kO The estimated date for beginning this work is May 19st, 2014. Please find attached for the review of the Commission forms 10-403 and supporting documentation. If you have any questions or require further information,please contact at 907-865-3321. � ��� u 2f/', _Sineer_ y, J.iif� right Drilling&Completion Engineering Manager OP-I1 Workover— Summary Page OP-I1 Capital Rig Workover PTD#:208-137 Current Status Well OP-I1 is currently dead. Scope of Work Scope of this workover is recover the well to be used as an OA-Sand Injector. // General Well info 577- Wel /1- Pressure/TVD: Well was suspended (December 31St, 2006). Wellhead type/pressure rating: Vetco Gray, MB-234/5000 psi BOP configuration: Annular/pipe/blind rams/Mudcross/pipe TIFL/MIT-IA/MIT-OA: Inspected by eni on November 12th, 2010, and October 11th, 2011. Well type: Exploration Estimated start date: May 19th 2014 Drilling rig: Nabors 245 Contact: James Wright: James.Wright@enipetroleum.com Work: 907-865-3321 • Procedure: 1. MIRU Nabors 245. R/U 11" x 13 3/8"adapter flange and BOP. P 2. Ensure well is dead.'' ccos;AO L--- - 3. Pull 3 %2" kill string. •f+/So'/s; 4. Remove existing wellhead, Install 16-20" swedge, Riser and Diverter 5. Perform the cuts—350', 250', 150', 60' 6. Washover 10-3/4" casing with 13-3/8" FJ wash pipe or 13 3/8" casing and wash- shoe to approx 350' GL. Pull 10-3/4" intermittently during works. • 7. Well clean-up to sidetrack point and set bridge plug and AS1 cement plug on top 8. Continuing with sidetrack operations. Below the current schematic of the well: 5/7 DEPTY ? Oliktok Point- AtGK Injector#1 PB1 5.k4Arlt DMI LW! !OM DSPPN-RNS N2 4[01t CADDO WO...50 MIND YD Too SIZE SPECS Creme.tic SIC I0' M60 9D P' NU 56 0.fi11525' NPA 00,00iR'RES 4ffCCw Nd TXT DE625.10' )5.7NASWy tow 400. o .f`wAtf�sl 2065 1.t25' _ MS 125•:100 S.M Av.e. w f.11 Eft Pug Piro 2.391' DLS Z•1:µ. Iii'. s n,.' CurnDolw4 EZSV MOD 2{41' t 111.4 Top 7MID coma.D1ua 16 PDbe 2511 2312 1117 tt'f ti iGr.�C•q eni., EKLUND i Plus: 2.yi E, .IPS.. 17.41 2P INA 5TCA/ �.,.4514.. • t.1 1,113 top 2100 frnrrt PWO I' 1.9Q/XS " 1.1 Ste. 21SS D 150 1''I'OI - 6110.8 To[ 7000 I Scmmt vtue.2 • E.r[•.0 1..1.. f 4,10 (.»m Clue Pi Cement ''"" 01 PDX 0.512 l 624' ,De1 oar\a are • nfl SIS oper 1t ng WELL OP-11A-106 PREDRILLING WORKS WELLHEAD SWAP/10-3/4" WASHOVER/CEMENT KICK-OFF PLUG OD WT Grade Conn. ID(in) Collapse Burst Tensile yield (in) (ppf) Type (psi) (psi) (kips) 16" 65 H-40 Welded 15.25 630 1,640 439 Existing Conductor- Well OP-Il — 76'GL 1. Confirm that the identification markings on the conductor match the planned surface location with the "as-built survey." If identification markings are not present on the conductor, contact the Drilling Supt. prior to moving the rig onto the well. ➢ Each conductor is to be marked with a common pad elevation survey mark by the surveyors D. Surveyors to also mark each conductor with a degree of angle to set each horizontal wing valve 2. Move in and rig up. Record move distance and rig floor distance to pad and sea level in WellView and on IADC reports. Initiate a Rig Elevation Record and place it on the N drive. • Ensure all concerned parties(Directional Drillers,MWD Operators,and Geologists)are using the same rig floor elevation. 3. Post drilling permit in the rig office and company office. ➢ Notify AOGCC prior to spudding well 4. Nipple down tree and nipple up 11"X 13-5/8"stud/stud adapter spool - Vetco Gray Specialists will be giving 24 hr coverage for the surface section of the well. 5. Nipple up 13-5/8"BOP.-See stack-up drawings in Attachments 6. Pull BPV and tubing hanger yr plugs from all annulus valves.Verify well dead.RE-install BPV and pull three and install test dart.Test. 7. Prior to pulling tubing hanger,circulate well to clean-fluid. Ensure mud engineer monitors returns (It is believed that diesel fuel is in the annular between the 3-1/2"and 10-3/4".If Arctic"Pack"is present, please follow MI procedure in the Attachments for proper disposal) 8. Pull test dart and BPV and make up landing joint to hanger.Back out hanger lock downs and pull tubing hanger. ✓ Maximum pull for 3-1/2",155,9.2#tubing is 120K(80%of yield). (Note-2,000 of 3-1/2"tubing in well per Kerr McGee"as is"Schematic in the Attachments) 9. Run in hole with tubing/DP and tag Top of Cement Plug (anticipated at 2,400).Report tag depth on DDR. 10. Close BOP and execute Pressure Test(s). D. 500 psi for 10 minutes-Chart record. ➢ 1,500 psi for 10 minutes-Chart record 11. Pull 3-1/2' Kill String. 12. Rig up Schlumberger Wireline. Log Top 600'- Cement Evaluation-Ensure Baker fishing hand and Superintendent receive log upon completion. ➢ Objective of Cement Evaluation Logging-Better plan the 10-3/4"(cutting.washover/fishing)works to be performed by Baker Specialists 13. Rig Down Wireline 14. Rig down BOP 15. Remove Wellhead (See Attachments for Vetco Procedure)/landing ring from Conductor OP-11A-106 Drilling&Completion Well Plan Page 6 of 61 04/08/14 • e m us itperaOing WELL OP-11A-106 16. Cut down 28'pipe integral to well house floor to facilitate welding 20'by 16'swedge. 17. Install/Weld 16"X 20"Swedge(Ensure thorough pre-job discussion before beginning works) ➢ ASRC Qualified Welder(with firewatch) ➢ Vetco Gray welding procedure in attachments ➢ Eni HSE to issue permit(s) ➢ Pre-Welding works to include prep of stump,plug holes in 16"conductor below the well house floor and install 3" nipples in conductor below swedge for cement returns. 18. Allow to cool (per the Vetco procedure) 19. Pressure Test Swedge(per the Vetco procedure) 20. Rig up Riser/Diverter spool and annular preventer- See Attachments for Stack-up drawing,Function Test 21. Rig up Diverter ➢ Notify AOGCC 24 hours in advance to performing diverter function test ➢ Confirm proper signage is on the pad indicating the rig has diverter equipment rigged up and to restrict access to diverter area. ➢ Place drip berm under the end of diverter line 22. Verify that two 3'threaded nipples have been welded on the conductor on opposite sides. Include ball valves and Cam-Lock male fittings on each nipple. Ensure threaded ball valves can be installed without running into the OD of the diverter head. Nipples are to be used as follows: ➢ Assist in washing out surface casing hanger on cement jobs ➢ Take returns to Vac trucks while cementing ➢ Provide access to annulus for top job through small diameter tubing 23. Prepare(Pre-job)for E-line hydraulic multi-string casing cutter. Please see Baker 'Field Operation Running Procedure" in the Attachments 24. Hydraulic cuts will be based on the results of the cement evaluation logs;however,if log are inconclusive,plan on cuts at 500,400",250', 150',and 60'. 25. Execute Washover/Pulling of 10-3/4'casing,pulling each piece of casing as washed-over-Baker Procedure 26. Upon completion of Washover works,Prepare(pre-job) for Cement plug works-See Schlumberger Cement plug plan in Attachments ➢ Run'clean-out BHA to top of 10-3/4'(500)-See BHA in Attachments ➢ Bridge plug to be set 50'into top of 10-3/4" ➢ 450'cement plug/balanced ➢ AS1 cement blend ➢ Circulate/displace out top 70'(122'RKB). ➢ After WOC time complete,RIH with Clean out BHA and dress cement plug to 125' 27. Prepare for Sidetrack Works- D. 14-3/4"BHA(milled tooth bit)-See attachments for BHA ➢ Kick-off point 150'and ➢ 1.83 bend for the motor 28. Build spud mud. Refer to the detailed MI-Swaco Mud Program (Attachments). OP-11A-106 Drilling&Completion Well Plan Page 7 of 61 04/08/14 2nn FIs operating WELL OP-11A-106 16" SURFACE HOLE SECTION (14-3/4" to 16" UR) Formation Markers: All depths 245E: Schlumberger Plan Measured True Formation Tops Depth, ft Vertical Comments Depth, ft SV-4 712 655 SV-3 976 910 SV-2 1257 1169 SV-1 1810 1653 B/ Permafrost 1890 1730 Ugnu Top (UG4) 2196 1982 13-3/8" 2791 2400 SCP UG-2 Coal Bed Marker 2866 2441 Lower Ugnu 5660 3114 Schrader Bluff Top 7299 3441 NikSE Mauve dte 7382 3460 N Top 7686 3520 N-2 Top 7769 3535 N-3 Top 7864 3553 N Bottom 7971 3572 N Sequence Base 8313 3627 ReCalc Intermediate Cement w/ Actual 9-5/W 9857 3756 ICP - Set >5' TVD Above OA Sand Top OA Top 9900 3761 TD 18630 4040 Total Depth OP-11A-106 Drilling& Completion Well Plan Page 8 of 61 04/08/14 2nll us operrahns WELL OP-11A-106 Surface Close Approach Wells NOTE: It is the responsibility of the Directional Driller and the Drilling Supervisor to ensure that the directional plan is executed as planned, that the position of the well as it is drilled is monitored on an anti-collision diagram and that no tolerance line for close approach wells is crossed. Surface Mud Program: NOTE: Maintain Weight up Schedule as listed below to casing point API Fluid Interval Depth Density 6 RPM Loss Chlorides PH (ppg) Reading (ml/30min) (mg/I) Surface: 110'- 1800' 8.8-9.2 16- 20 <8 <2000 9.0-9.5 1800'-C.P. 9.2-9.5 20- 20 <6 <2000 9.0-9.5 Surface Logging/Formation Evaluation Program: MWD Directional LWD GR/ Resistivity Surface Drill Pipe Tool Tool Make Joint Body DP Tensile Pipe WT Conn. Joint Joint Body Up Torsion Torsiona capacity Grade Capacit (ppf) type OD ID ID(in) Torque al Yield I Yield w/conn. y(kips) (in) (in) (ft.Ibs) (ft lbs) (ft.lbs) (gal/ft) 5'DP-Nabors 19.5 S-135 NC50 6 5/8 3.25 4.276 26,800 51,700 74,100 .726 712 G-Cplg Surface Drilling Surface Hole Notes: • The area around the conductor should be continuously monitored during drilling,circulating,and cementing operations. If broaching occurs,stop drilling immediately. Contact the AOGCC field inspector and the Drilling Superintendent and inform them of the broach. The Conductor Broach Procedure will then be implemented. • Efforts should be made to minimize high doglegs in surface hole(coming off cement plug). ESP equipment will be damaged running through high doglegs. Inform the Drilling Engineer of any doglegs over 6 degrees per hundred. • Prior to spud,a safety meeting will be held with the rig crews to discuss open hole drilling procedures. Suggested topics include: • Conductor broaching operations and contingencies • Well control procedures and rig evacuation procedures • Flow rates and hole cleaning • Sidetrack off cement plug at 150'and • Use and male-up of the Smith under-reamer tool • Ported float valves are required in all hole sections • Ensure E-Line Gyro is on location prior to spud OP-11A-106 Drilling & Completion Well Plan Page 9 of 61 04/08/14 fo* 2no us operraini nng WELL OP-11A-106 Surface Hole Procedure: 1. Pick up and drift all DP,HWDP,and DC's for surface section to confirm free of debris. 2. PU BHA • 14-3/4" Smith XR4 • TFA: 1.117 (3x20, 1 x 16) 12 .(q- • 1.83°ABH Motor i Include UBHO 3. Kicking off Cement Plug 11 i- 150' and- Kick-off pt i Low flow rate strategy while sidetracking -within limits of motor Comments MD InAzim True TVDSS TVD VSEC NS EW TF DLS (81) r) () (81) (81) (81) (81) (81) 11 I/1001Q RTE 0 00 0.00 0.00 -53 00 0 00 0 00 0 00 0.00 OM WA 40 90 0 00 0.00 -12 10 40.90 0.00 0 00 0 00 65.13M 0.00 16' 76.00 0.21 65.13 23.00 76 00 0.05 0.03 006 65.13M 061 Tie4n Survey 144 58 0.63 65.13 91 58 144 58 0.46 0 24 0 52 65 06M 0.61 KOP Cry 1 5/100 150 00 0.72 65.07 97 00 150.00 0 51 0 27 0.57 94 SM 1.62 200 00 1 43 91 60 146 99 199 99 1 03 0 35 1 48 107 68M 1.76 300 00 3 13 107 68 246 91 299.91 2 10 -0 58 5.33 110M 1.76 Cry 21100 350 00 4 00 110 00 296 81 349 81 2.66 -1 59 8 27 110M 1.76 400 00 5 00 110.00 346 65 399 65 3 29 -2 93 11 96 110M 200 500 00 7 00 110 DO 446.10 499 10 4 98 -6.51 21 78 110M 2.00 Cry 2.5/100 550 00 8 00 110 00 495 67 548 67 604 -8 74 27.91 110M 2.00 600 00 925 110 00 545 11 598 11 7 25 -11 30 34 96 HS 2.50 700 00 11 75 110 00 643 42 696 42 10 20 -1754 52 08 HS 2.50 800 00 14.25 110 00 740 85 793 85 13.84 -25.23 73 22 HS 2.50 900 00 16 75 110 00 837 21 890 21 18 16 -34 37 98 33 HS 2.50 inn°nn 1474 117 nn 917 11 48411 71 16 .4.494 177 14 HS 2 Fn 4. Directionally drill surface hole: i- Drilling Parameters: • Flow Rate: +650 GPM • Lower flow rates of 450-600 GPM will help avoid anti-collision boundaries by minimizing hole washout and optimize dog leg capability in the build section • Rotary: 40 - 80 RPM ➢ Avoid anti-collision boundaries D Take MWD surveys as frequently as needed. Carefully review the anticipated close crossings with existing wellbores. Make sure that directional drillers are aware of all drilling close crossing issues,hardlines and no-go lines. If a no-go or hardline has been or will be crossed,stop drilling immediately and contact the Drilling Superintendent to discuss options. 5. Hole conditions will always determine final mud properties. i Watch returns closely for signs of gas when near the base of the permafrost and circulate out all gas-cut mud before continuing to drill. • Although hydrates are not expected attempt,keep mud as cool as possible. • Control drill at 100 to 120 fph through any troublesome zone so the hole does not load-up with gas cut mud. • Check and report trip gas. i- Consider adding 0.5%Drilzone for screen blinding in shallow intervals right below the conductor. 6. Surface casing point: OP-IlA-106 Drilling & Completion Well Plan Page 10 of 61 04/08/14 • em us operating WELL OP-11A-106 D Land in good shale found between 2400'SSTVD and 2650'SSTVD.(Land 15"deeper than desired as the Underreamer run will be 15" higher than drillbit,ie,casing pt will be 15'higher) D Below the sand at the base of the Sagavanirktok Formation(SV-1). D Inside the upper Ugnu(UG-4). ➢ Drill the hole 15'deeper than typical casing pt to fit casing,if possible,to reduce pup joints in the string. Leave at least 15'rathole. 7. Backream out of the hole at surface casing point: Y Circulate until shakers are clean as per K&M. Backream one (1)stand per bottoms up very slowly. ■ 800 GPM or higher ■ 80 RPM or higher > Backream to the HWDP ■ 800 GPM or higher ■ 80 RPM or higher ■ Pull 5-10 feet per minute,backreaming speed will be dictated by hole conditions. Consult with K&M prior to increasing pulling speed. • Decrease backreaming speed as torque and pump pressure dictate. ■ NOTE: once backreaming in the open hole has been started,DO NOT stop backreaming until the HWDP. DO NOT attempt to pull out on elevators once backreaming has started. ■ Expect+/-100%increase in cuttings from 1800'-600'. • Lesson Learned from OP09-S1:While backreaming out of the hole in the transition from horizontal to vertical,have the shaker box sub-guns running or ready to run at the first sign of clay balling. Have the flow line jets hooked up and ready to activate to assist flow line cleaning. Shaker hand should notify the rig floor at first clay show at the shakers. • If shakers/mud return system becomes overloaded and flow rate is cut to handle the issue,DO NOT continue to backream until the parameters are brought back to full backreaming rate. ➢ Once the HWDP is reached,circulate until hole is clean as per K&M 8. Pull and lay down 14-3/4" BHA. 9. Make-up the Smith Rhino-Reamer with bull-nose BHA-See Attachments 10. Execute reamer run to TD.(Please note that the Reamer will be approx.20'above nose). Casing point will be 15'above TD. 11. Backream out of hole: > Abbreviated backreaming plan-To be determined by K&M representative onsite ➢ Rhino Reamer to be closed while back-reaming. 12. Pull and laydown the under-reamer BHA OP-11A-106 Drilling & Completion Well Plan Page 11 of 61 04/08/14 . Below the current schematic of the wellhead: Anadarko Oliktok Project MB-234 Wellhead System (10,81) 16"x 10-3/4"x 7-5/8"x 4-1/2'5M (12.00) I -I (14.00) I di 10-3/4'Lancing Su f; `1' (51.19 IP;Pi , ,,� ` / Peneo dor Pat (10.81) 1 (9.94) 16Ai0 I (18.57) L+� (31.13) 1 A 4b MC Guide Suety WI;Bowl Pole for I: l fod Tub igg Hng Bowl Pmem (7.00)--+.--.. N. �� 7' (638)�� (10.81) _f_ ki, ._.,),,,' (19138) --Test Pug (18.06) (1362) 1 s #,f (10.13)-1.—.1 8PR.,vingT (9.25)-1.-1 (5.87)x.( 1...(754) �� 1 I I (1.1_ B (2250) Sub Pads Off RA MilTudng Hanger r' f,� ,01 i .I... (41.13) 40 .1 ( ) / (1.25) r- 16111( I (:2.22),irh 3.96) .,1,=1i, so. l. ,��� , ; (.) (�58) ' + I (116.92) (7.00) (7.60) E;111\11, '; ��"_'�i i T--1;7=1 (10.- (49 z 1 ' - i i (.. (Ism) (7,74) Pads,. =.�,` (14.05)(20.29)(15.52) (17.94) (6.84, .,� t- . "I i i -- (6.84)—).-+( (9.94 (18.06) iii T (144.1; 14. dal18 (9.95) _ fII I , (2 ' ( ) 1v911... ! Mt t _ (14.00) - - (10.13) -\ .g FIN 506154.1 Vetco Gray .ed^ eff at`11'n vetco � ' iI z IP 5. n d c NIPIIIILI c, 1 et CC 7 E � W W �! 1 lin 1 o i , 1 9> atic 0I cc 0 z W 1 d IiII in it- III . _ zCCa Fl I. El. I 111:::LIIi1= O�I' -�' <g.:11-1 _-z_ Z � � _ _ -- .1 ® .F�— c aY yp - III' . . oZw 8 4 P m<g.g i S a3Ild ''s \p�Nz n..i' 2 u'S i f.,Q�Qsa2 g k= � ti N- yl 1_1 ttEd tt 6 h E "-1! " $ l' .-i g� eg\ g1......1.z% §• ,_,R 1 Irr ',:',NS t A m f\.. _o_ m V J YQ O T v - x ~ O . 3 Ir 1111111 I _ _� _ 0 �_i __ 1II _ ' 111I = gill* w 1 A\ w �I, u a L_ U, N I N WYbI ft 2 U ..= Zg 1 2 if* os cin o us operraC�ns QYo� 5� � v WELL OP-11A-106 Oliktok Point Nikaitchuq Field North em pc rrrolleu ins Slope - Alaska O P-I 1A-106 _ DIR/LWD FORM DEPTH HOLE CASING MUD INFO MWO MD TVD SIZE SPECS INFO Cement to Surface c 16"(15.25"id) Hole Angle o X-65 0° 16"Conductor Shoe 76' 76' Rat Hole Welded N/A Pre-Drilling Works P Remove 500'0110 3/4" KOP:300' V N Surface Csg Replace Wellhead DLS 4-6 deg/100 ft o c 13-3/8" Install 16"to 20"Swedge a 688 MW(ppg) Cement Plug to 500' Mud Motor B/Pernefrost 1,890' 1,730' i- L-80,BTC 8.8-9.5 w GR/Res u' 0 Dir/PWD Top of Tail 2,291' 2,102' r Wellbore Stability N Lost Circulation N <°;- 14-3/4"-bit Hole Cleaning r' r117 16"UR Casing Sections to n F Hole Angle m 55.00 De. 13-3/8" 2 791' 2 400' ,__- , 16" 50°F WBM GR/RES/PWD Direr.Casing Wellbore Stability 9-5/8" Lost Circulation Xceed 900 { 40 6 MW(ppg) Hole Cleaning L-80,Hydril 563 8.8-9.5 Torque&Drag Casing Sections Tangent Angle: Casing Wear 78.41 Deg BHA Expense — — Intermediate TOC 6,686' 3,480' Pick-up Top of Sand N in V v NTop 7,686' 3,520' Injection Packer 9,520' 3,760' F, 1;n4 g c:, If Hole Angle TOL 9,657' 3,700' -°-0 87.00 Deg 9-5/8" 9,857' 3,756' i° 12.25" 85°F WBM GR/RES/EcoSCOPE/PWD Wellbore Stability Lost Circulation 6- Liner Hole Cleaning 4-1/2" Torque&Drag Er' 11.6 8 MW(ppg) Casing Sections Xceed 675 w L-80,Hydril 521 8.7-9.4 Casing Wear BHA Expense rt in LI Hole Angle _--. 88.00 Deg 4-1/2"Liner 18,630' 4,040' 8-3/4" 85°F MOBM OP-11A-106 Drilling & Completion Well Plan Page 2 of 61 04/08/14 ' Schwartz, Guy L (DOA) From: Schwartz, Guy L(DOA) Sent: Wednesday, March 19, 2014 3:24 PM To: james.Wright@enipetroleum.com Cc: Occhionero Lara; Bettis, Patricia K(DOA) Subject: RWO for Sidetrack OP-I1 (PTD 206-137) James, Please provide a schematic showing the well(OP-11) after you have completed the RWO operation(set up for sidetracking). I also need more information on the type of kickoff plug and its proposed depth. Also,supply an outline of the drilling plan for the sidetrack well including the kickoff drilling, FIT and general drilling plan. Guy Schwartz Senior Petroleum Engineer AOGCC 907-301-4533 cell 907-793-1226 office 1 i ^~. ~- '" ~ ~ , ~~~ ~` ~• MICROFILMED 6/30/2010 DO NOT PLACE ANY NEW MATERIAL UNDER THIS PAGE C:\temp\Temporary Internet Files\OLK9\Microfilm_Marker.doc ~ ~ ~~ ~~~ DATA SUBMITTAL COMPLIANCE REPORT 10/15/2008 Permit to Drill 2061370 Well Name/No. OLIKTOK POINT I-1 Operator KERR-MCGEE OIL & GAS CORP API No. 50-029-23324-00-00 MD 8990 TVD 3912 Completion Date 12/31/2006 Completion Status SUSP Current Status SUSP UIC N REQUIRED INFORMATION Mud Log Yes Samples No Directional Surrey Yes DATA INFORMATION Types Electric or Other Logs Run: LWD -- Quad Combo, WL DP Conveyed RCI (data taken from Logs Portion of Master Well Data Maint Welt Log Information: Log/ Electr Data Digital Dataset Log Log Run Interval OH / T~ Med/Frmt Number Name Scale Media No Start Stop CH Received Comments C Las 14506 Induction/Resistivity 14506 Gamma Ray 14506 Induction/Resistivity 14506 Induction/Resistivity 14506 Induction/Resistivity 14506 Induction/Resistivity 14506 Induction/Resistivity 14506 Induction/Resistivity 14506 Induction/Resistivity 14506 Gamma Ray 14506 Induction/Resistivity 14591 Gas Analysis Open 3/21/2007 LAS ROP, CTN, EWR w/Graphics 5 Blu 0 3912 Open 3/21/2007 MD DGR, BAT 16-Dec- 2006 5 Blu 0 8990 Open 3/21/2007 MD ROP, DGR, EWR, CTN, ALD 16-Dec-2006 2 Blu 0 8990 Open 3/21/2007 MD ROP, DGR, EWR, CTN, ALD 16-Dec-2006 5 Blu 0 3912 Open 3/21/2007 TVD ROP, DGR, EWR, CTN, ALD 16-bec-2006 2 Blu 0 3912 Open 3/21/2007 ND ROP, DGR, EWR, CTN, ALD 16-Dec-2006 5 Blu 0 8990 Open 3/21/2007 MD Tool Speed, DGR, EWR, CTN, ALD Repeat Pass 16-Dec-2006 2 Blu 0 8990 Open 3/21/2007 MD Tool Speed, EWR, DGR, CTN, ALD 16-Dec- 2006 2 Blu 0 3912 Open 3/21/2007 TVD Tool Speed, EWR, DGR, CTN, ALD 16-Dec- 2006 5 Blu 0 8990 Open 3/21/2007 MD DGR, GR 16-Dec-2006 2 Blu 0 3912 Open 3/21/2007 TVD Tool Speed, EWR, DGR, CTN, ALD 16-Dec- 2006 0 Open 4/10/2007 MudGas analysis, report included. r1 f~ DATA SUBMITTAL COMPLIANCE REPORT 10/15/2008 Permit to Drill 2061370 Well Name/No. OLIKTOK POINT I-1 Operator KERR-MCGEE OIL & GAS CORP 8990 TVD 3912 Completion Date 12/31/2006 Completion Status SUSP Current Status SUSP API No. 50-029-23324-00-00 UIC N 15141 Report: Final Well R i og 15141 Mud Log og 15141 Mud Log (I~g 15141 Mud Log j-L'og I 15141 Mud Log I .i L6a 15141 See Notes Well Cores/Samples Information: Name 0 8990 Open 5/22/2007 End of Well Report, General Info, Daily Summ, Morning Reports, Bit Recors, Mud Reports, Show Reports, Survey Reports, Days vs Data, Data CD w/Graphics PDF 2 Col /''1- IJ 0 8990 Open 5/22/2007 MD Rig Monitoring, Combo Mud Log 16-Dec-2006 2 Col ~~ 0 3912 Open 5/22/2007 MD Rig Monitoring, Combo Mud Log 16-Dec-2006 V5 Col M~ 0 8990 Open 5/22/2007 MD Rig Monitoring, Combo Mud Log 16-Dec-2006 ~5 Col `~'1l.U 0 3912 Open 5/22/2007 MD Rig Monitoring, Combo Mud Log 16-Dec-2006 2 0 b ~4I0 Open 5/22/2007 Engineering Log Sample Interval Set Start Stop Sent Received Number Comments Cores and/or Samples are required to be submitted. This record automatically created I~ _ __ from Permit to Drill Module on: 11/14/2006. ADDITIONAL INFORMATION Well Cored? Y R~ N Daily History Received? Chips Received? -~-1-DL Formation Tops / N Analysis ~/ I~, Received? Comments: • Sperry Driilin~ Services To: Alaska Oil ~ Gas Conservation Commission Librarian 333 West 7 Avenue, Suite 100 Anchorage, AK, 99501 Re: Final Mudlogs: Oliktok Point 1-1, & Oliktok Point I-2, PB-1, PB-2 The technical data listed below is being submitted herewith. Please address any problems or concerns to the attention of: Steve Carroll, Sperry Drilling Services, 6900 Arctic Blvd., Anchorage, AK 99518, Ph: 907-273-3538 ~0~-~3~ Oliktok Point I-1 tai. ad /4p= ~ ~ `5 ~,~~~ End of Wetl Report 1 Copies 2" MD Combination Mudlog (40-8900') 1 Copies 2" TVD Combination Mudlog (40-3912') 1 Copies 5" Show Log (8000-8990') 1 Copies 5" TVD Show Logs (3400-3912') 1 Copies CDROM 1 Copies Oliktok Point I-2. PBi. PB2 a~ _1C~L/ {~ ~ 51L~a End of Well Report 1 Copies 5" MD Combination Mudlog (0-1,711') 1 Copies 2" TVD Combination Mudlog (0-3702') 1 Copies 5" MD PBi Combination Mudlog (0-6715') 1 Copies 5" TVD PBl Combination Mudlog (0-3702') 1 Copies 2" MD PBl Combination Mudlog (0-6715') 1 Copies 2" TVD PB1 Combination Mudlog (0-3702') 1 Copies 5" MD PB2 Combination Mudlog (0-9747') 1 Copies 2" MD PB2 Combination Mudlog (0-9747') 1 Copies 5" Show Log (9390-12,650') 1 Copies 5" PBi Show Log (6030-6510') 1 Copies 5" P62 Show Log (5880-7020') 1 Copies CDROM 1 Copies Please sign and return one copy in the self addressed envelope provided. Pr int i ia~i~e ~ ~ l l i -~'~~ y~£~ ~~t,c~,iit,ut, V t~v~ Signature Date www.isotechlabs.com mail@isotechlabs.com Isotech Laboratories, Inc. 1308 Parkland Court Champaign, IL 61821-1826 Telephone 217/398-3490 FAX 217/398-3493 Apri13, 2007 Alaska Oil & Gas Conservation Commission 333 West 7~' Avenue Suite 100 Anchorage, AK 99501 Attn: Librarian To Whom It May Concern: ~- a _~ _u ~-~ &~ ~ 2~0? :~~r6 Enclosed you will find one hard copy of the analysis report and a CD with final data for all of the IsoTube samples that we analyzed recently from the Oliktok Point I-1 well. If you have any questions, or if there is anything else we can do for you, please do not hesitate to contact us. Sincerely, Renee Hendrickson Lab Analyst Enclosure -, - ~- ~ , ~~ ~ She , ~~,s5 i~ ~,, c ec~~,r'2~~~~~ iv r~C~ 1 ~~ ~ 1 `'/5 ~~ l' : '+ ~ • ®~ ~ ~ ~ www.isotechlabs.com mail@isotechlabs.com Isotech Laboratories, Inc. 1308 Parkland Court Champaign, IL 61821-1826 Telephone 217/398-3490 FAX 217/398-3493 Well Summary Oliktok Point I-1 Prepared for: RECEIVED APR 1 ~ 2007 ?~taska Oft & Gas Cons. Commission Andarage Alaska Oil & Gas Conservation Commission 333 West 7th Avenue Suite 100 Anchorage, AK 99501 Attn: Librarian April 3, 2007 Prepared by: Isotech Laboratories, Inc. Includes Isotech Job Number: 8067 ao~-~~~ ~~s~~ ANALYSIS REPORT Isotech Mudgas Data Job 8067 Well: Oliktok Point I-1 28 IsoTubes Isotech Lab No. Isotech Job No. Sample Date Sample Time Depth 1 Feet Gas Units GC Date OZ + Ar ppm COZ ppm NZ ppm CO ppm C, ppm CZ ppm CZH, ppm C, ppm C3H8 ppm iC, ppm nC, ppm iC5 ppm nCs ppm Cs+ ppm Mass Spec Date S13C~ per mil S13C2 S73C3 Comments per mil per mil _ 110200 8067 11/30/2006 17:14 1675 140 2/09/2007 208700 670 770100 0 20500 4 0 0 0 0 0 0 0 0 2/12/2007 -53.3 110201 8087 11/30/2006 20:56 1975 205 2/09/2007 217700 530 779700 0 2030 0 0 0 0 0 0 0 0 0 2/12/2007 -50.1 110202 8067 12/1/2006 0:05 2295 86 2/09/2007 208300 730 773900 0 17100 0 0 0 0 0 0 0 0 0 2/12/2007 -50.7 110203 8067 12/1/2006 2:48 2561.4 80 2/09/2007 210600 460 784000 0 4940 0 0 0 0 0 0 0 0 0 2/12/2007 -49.7 • 110204 8067 12/8/2006 12:44 3000 23 2/09/2007 211400 420 785800 0 2410 0 0 0 0 0 0 0 0 0 2/12/2007 -48.8 110205 80137 12/9/2006 13:20 4200 30 2/09/2007 183000 0 813600 0 3440 0 t 0 2 0 0 0 0 0 2/13/2007 -50.4 110206 8067 12/9/2006 17:18 4500 39 2/09/2007 176100 0 774300 0 4900 0 0 0 2 0 0 0 0 0 2/13/2007 -50.1 sample has about 45000 ppm hydrogen 110207 8067 12/9/20013 23:10 5032 35 2/09/2007 213000 410 782700 0 3900 0 0 0 0 0 0 0 0 0 2/13/2007 -50.2 110208 8067 12/10/2006 7:00 5700 70 2/09/2007 212600 430 783800 0 3180 1 0 0 0 0 0 0 0 0 2/13/2007 -52.5 110209 8067 12/10/2006 13:30 8000 30 2/09/2007 213600 200 784000 0 2210 0 0 0 0 0 0 0 0 0 2/13/2007 -53.8 110210 8067 12/10/2006 17:30 6350 25 2/09/2007 213100 250 784100 0 2540 0 0 0 0 0 0 0 0 0 2/13/2007 -55.8 110211 8067 12/10/2006 19:00 6600 25 2/09/2007 214400 290 784200 0 1120 1 0 0 0 0 0 0 0 0 2/13/2007 -55.6 110212 80137 12/13/2006 8:30 7200 19 2/09/2007 214400 210 783400 0 2010 0 0 0 0 0 0 0 0 0 2/13/2007 -59.1 110213 8067 12/13/2006 9:40 7288 85 2/09/2007 211500 190 776000 0 12300 3 0 0 0 0 0 0 0 0 2/13/2007 -59.3 110214 8067 12/13/2006 10:10 7310 180 2/09/2007 207500 180 771300 0 21000 7 1 1 1 0 0 0 0 0 2/13/2007 -58.5 110215 8067 12/13/2006 12:38 7500 12 2/09/2007 214600 250 783900 0 1230 1 0 0 0 0 0 0 0 0 2/13/2007 -57.5 110216 8067 12/13/2006 16:18 7800 50 2/09/2007 213700 240 779800 0 6300 3 0 0 0 0 0 0 0 0 2/13/2007 -59.0 110217 8067 12/14/2006 4:07 8330 1900 2/09/2007 169800 180 636600 0 189500 1020 0 685 2 380 496 322 207 819 2/13/2007 -52.6 -41.1 -28.4 110218 8067 12/14/2006 5:50 8418 1350 2/09/2007 188800 350 680700 0 117700 630 0 422 1 237 306 200 128 482 2/13/2007 -51.9 -40.7 -28.6 110219 8067 12/14/2008 3:42 8538 600 2/09/2007 193200 230 720400 0 85000 369 0 138 1 115 117 112 49 305 2/13/2007 -52.3 -43.0 -28.7 110220 8067 12/14/2006 9:20 8610 70 2/09/2007 213000 220 780700 0 5650 24 0 25 0 31 46 50 35 279 2/13/2007 -52.5 110221 8067 12/14/2006 11:25 8680 66 2!09/2007 213800 300 779500 0 8090 20 0 13 0 18 27 33 23 185 2/13/2007 -52.4 110222 8067 12/14/2006 11:36 8710 550 2/09/2007 201400 310 737700 0 59700 196 0 88 1 82 90 86 45 306 2/13/2007 -52.2 -42.9 -28.4 110223 8067 12/14/2006 12:14 8726 522 2/09/2007 200800 250 738300 0 59700 262 0 97 1 82 88 85 43 272 2/14/2007 -52.0 -43.1 -28.3 110224 80137 12/14/2006 12:50 8750 1200 2/08/2007 185000 280 684300 0 128700 591 0 214 2 165 168 152 68 383 2/13/2007 -52.3 -43.1 -28.5 110225 8067 12/14/2006 13:16 8775 1700 2/08/2007 173400 290 640000 0 183800 917 0 336 2 250 250 218 92 487 2/13/2007 -52.2 -43.0 -28.2 110226 8067 12/14/2006 13:29 6795 1900 2/08/2007 171200 290 631900 0 193900 980 0 361 2 267 265 229 96 499 2/13/2007 -51.8 -43.0 -28.1 110227 8067 12/14/2006 15:11 8820 420 2/08/2007 214400 190 782000 0 2950 28 0 27 0 42 48 63 31 245 2/13/2007 -52.8 -42.7 -28.2 Chemical analysis based on standards accurate to within 2 %. • in blue = carbon Isotope data obtained via cryogenic e nrichment ISOTECH Laboratories, Inc. 1308 Parkland Ct. Champaign, IL 61821 217/398-3490 • WELL LOG TRANSI~~IITTAL To: Alaska Oil 8~ Gas Conservation Commission 333 West 7 Avenue, Suite 100 Anchorage, AK 99501 Attn: Librarian RE: MWD Formation Evaluation Logs: Oliktok Point I-1 API#t: 50-029-23324-00-00 March 19, 2007 AK-MW-4627568 The technical data listed below is being submitted herewith. Please address any problems or concerns to the attention of: Rob Kalish, Sperry Drilling Services, 6900 Arctic Blvd., Anchorage, AK 99518 Oliktok Point I-1 ~~ ,.- l ~ 5"/100' MD Resistivity, Gamma Ray, Res. &Neutron-Density Logs: 1 Color Log 2"/100' MD Resistivity, Gamma Ray, Res. &Neutron-Density Logs: 1 Color Log 5"/100' TVD Resistivity, Gamma Ray, Res. &Neutron-Density Logs: 1 Color Log 2"/100' TVD Resistivity, Gamma Ray, Res. &Neutron-Density Logs: 1 Color Log 5"/100' MD Resistivity, Gamma Ray, Res. &Neutron-Density Logs: 1 Color Log a MAD PASS 2"/ 100' MD Resistivity, Gamma Ray, Res. &Neutron-Density Logs: 1 Color Logue. MAD PASS 5"/100' TVD Resistivity, Gamma Ray, Res. &Neutron-Density Logs: 1 Color Log,. MAD PASS 2"/100' TVD Resistivity, Gamma Ray, Res. &Neutron-Density Logs: 1 Color Log ~ MAD PASS 5 "/ 100' MD GR-BAT Sonic Logs: 1 Color Log 5"/100' TVD GR-BAT Sonic Logs: 1 Color Log . Digital Data, Final Graphic Files, & Surveys: 1 CD Rom ~~ ~~ . Received by & date: j~ '~ ,~~ /~~ll ~- ~, . _ ~1J KerrNtGee B.K. Bowen ALASKA QPERATIONS MANAGER February 6, 2007 Commissioner Alaska Oil and Gas Conservation Commission 333 W 7t" Avenue, Suite 100 Anchorage, Alaska 99501-3539 Re: Oliktok Point I-1 Kerr McGee Oil & Gas Corporation Completion Report Kerr-McGee Oil & Gas Corporation A subsidiary of Anadarko Petroleum Corp 3900 C STREET, SUITE 402 ANCHORAGE, AK 99$03 907-339-6370 • Fax 281-673-4181 E-MAIL: KIM.BOWENepANADARKO.COM Attached for your review is the Completion Report for the Oliktok Point I-1 well located from a gravel pad at Oliktok Point. This well was suspended with cement plugs back into the surface casing along with an EZSV mechanical plug set in the surface casing. If you have any questions or concerns about the report, please call me at 339- 6370 and I will do my best to address them. Sincerely, /. `~'l~~ B.K. Bowen Alaska Operations Manager STATE OF ALASKA FEB 0 7 200% ALASKA LAND GAS CONSERVATION COMMIS WELL COMPLETION OR RECOMPLETION REPORTI~ii~-Q~tons.Clmwt-ission 1a. Well Status: Oil^ Gas Plugged Abandoned zoanczs.~os GINJ^ WINJ ^ WDSPL^ No. of Completions Suspended ~ ,WAG 2onACZS.~~o Other 1b. Well Class: bnCa0f8gE Development ^ Exploratory^~ Service ^ Stratigraphic Test^ 2. Operator Name: Kerr McGee Oil & Gas Corp 5. Date Comp., Susp., or / Aband.: Susp. ~2~3 • 12. Permit to Drill Number: J3'0~06-137 ' 3. Address: 3900 C Street, Ste 402, Anchorage, AK 99503 6. Date S udded: .677 11 /2006 _• (; ~ O'7 13. APf Nupm~be0r: ~ ~~Ax-~-133~.y-oe 4a. Location of Well (Governmental Section): Surface: 2051' FNL & 1519' FEL of Section 5, T13N, R9E UTM ~ 7. Date TD Reached: 12/15/2006. 14. Well Name and Number: Oliktok Point I-1 Top of Productive Horizon: NA 8. KB Elevation (ft): 52' 15. Field/Pool(s): Exploration Total Depth: 4101' FNL & 648' FEL of Section 33, T14N, R9E UTM 9. Plug Back Depth(MD+TVD): 2441 + 1988 4b. Location of Well (State Base Plane Coordinates): Surface: x- 516760 y- 6036581 Zone- 4 10. Total Depth (MD +TVD): .8990 + 3912 16. Property Designation: ADL390615 ' TPI: x- y- Zone- Total Depth: x- 522894 y- 6039827. Zone- 4 11. Depth Where SSSV Set: NA 17. Land Use Permit: ADL417493 18. Directional Survey: Yes ~ No ^ 19. Water Depth, if Offshore: NA feet MSL 20. Thickness of Permafrost: 1921 21. Logs Run: LWD -- Quad Combo, WL DP Conveyed RCI 22. CASING, LINER AND CEMENTING RECORD WT. PER E SETTING DEPTH MD SETTING DEPTH TVD HOLE SIZE CEMENTING RECORD AMOUNT CASING FT GRAD TOP BOTTOM TOP BOTTOM PULLED 10.75 45.5 L-80 0 2541 0 2057 13 334.6 Bbls(453 sx) PF L @10. 46.3 Bbsl(225 sx) G @ 15.8 p 23. Perforations open to Production (MD +TVD of Top and Bottom 24. TUBING RECORD Interval, Size and Number; if none, state "none"): SIZE DEPTH SET (MD) PACKER SET (MD) NONE ~ 3.5 1992 na 25. ACID, FRACTURE, CEMENT SQUEEZE, ETC. DEPTH INTERVAL (MD) AMOUNT AND KIND OF MATERIAL USED 26. PRODUCTION TEST Date First Production: Method of Operation (Flowing, gas lift, etc.): Date of Test: Hours Tested: Production for Test Period Oil-Bbl: Gas-MCF: Water-Bbl: Choke Size: Gas-Oil Ratio: Flow Tubing Press. Casing Press: Calculated 24-Hour Rate --- Oil-Bbl: Gas-MCF: Water-Bbl: Oil Gravity -API (corr): 27.. CORE DATA Brief description of lithology, porosity, fractures, apparent dips and presence of oil, gas or water (attach separate sheet, if necessary). 4 Submit core chips; if none, state "none". .SGtS ~^N.t~?An. NONE HATle v~--~-- ;~ _ Ib ~L xei? Form 10-407 Revised 12/2003 ~ ~ ~ ~ ~ ~ ~t~TINUED ON REVERSE `~,~'~t~/~r~ 2• /x•07 ~~ r« i~'_ Z //Y f47 28., ~ GEOLOGIC MARKER 29. ORMATION TESTS NAME M TVD Include and briefly su rize test results. List intervals tested, and attach Base Permafrost 2037 1780 detailed supporting data as necessary. If no tests were conducted, state Ugnu 5882 2900 "None". L. Ugnu 7295 3327 NONE ~ SchraderBluff 7945 3565 SchraderBluff N Sand 8210 3648 SchraderBluff OA Sand 8714 3811 TD 8990 3912 30. List of Attachments: 31. I hereby certify that the foregoing is true and correct to the best of my knowledge. Contact: \ f /~ (~G f,,~,j~ l1 Title: .A~~ ~kc~ Q' t'r~'T1C7riS (1~c~~c~ ef" Printed Name: / j ~ Signature: / '~/~----. Phone: 3~~' (c>~~O Date: ~._~~~R/ 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 Injection, Observation, or Other. Multiple completion is defined as a well producing from more than one pool with production from each pool completely segregated. Each segregated pool is a completion. Item 4b: TPI (Top of Producing Interval). Item 8: The Kelly Bushing 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 Halliburton Company Survey Report Company: Kerr McGee Date: 1/23/2007 Timer 16:23:56 Page: 1 Field:` OLIKTOK POINT Co-ordinate(NE)Reference:` Well: Oliktok Point I-1, True North' Site: OLIKTOK POINT Vertical (TVD) Reference: Oliktok Point 1-1:53.0 Well: Oliktok Point I-1 Section (VS) Reference: Well (O.OON,O.OOE,62c24Azi) Wellpath: Oliktok Poinl I-1 Survey Calculation Method: Minimum Curvature ~ Db: Oracle Field: OLIKTOK POINT Map System:US State Plane Coordinate System 1927 Map Zone: Alaska, Zone 4 Geo Datum: NAD27 (Clarke 1 866) Coordinate System: Well Centre Sys Datum: Mean Sea Level Geomagnetic Model: bggm2006 Well: Oliktok Point I-1 Slot Name: Well Position: +N/-S -0.03 ft Northing: 6036581.12 ft ~ Latitude: 70 30 40.060 N +E/-W -0.28 ft Easting : 516760.57 ft / Longitude: 149 51 46.249 W Position Uncertainty: 0.00 ft Wellpath: Oliktok Point I-1 Drilled From: Well Ref. Point Oliktok Point I-1 MWD Tie-on Depth: 40.90 ft Current Datum: Oliktok P oint I-1: Height 53.00 ft Above System Datum: Mean Sea Level Magnetic Data: 11/26/2006 Declination: 23.64 deg Field Strength: 57616 nT Mag Dip Angle: 80.94 deg Vertical Section: Depth Fro m (TVD) +N/-S +E/-W Direction ft ft ft deg 40.90 0.00 0.00 62.24 Survey Program for Definitive Wellpath Date: 1/23/2007 Va lidated: No Version: 5 Actual From To Survey Toolcode Tool Name ft ft 144.58 8952.19 Oli ktok Point I -1 IIFR+MS+Sag 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 tt ft ft 40.90 0.00 0.00 40.90 -12.10 0.00 0.00 6036581.12 516760.57 TIE LINE 144.58. 0.63 65.13 144.58 91.58 0.24 0.52 6036581.36 516761.09 MWD+IFR-AK-CAZ-SC 234.13 2.09 64.76 234.10 181.10 1.14 2.44 6036582.27 516763.01 MWD+IFR-AK-CAZ-SC 321.99 4.60 71.20 321.80 268.80 2.96 7.23 6036584.10 516767.79 MWD+IFR-AK-CAZ-SC 413.20 6.11 73.68 412.61 359.61 5.50 15.35 6036586.66 516775.90 MWD+IFR-AK-CAZ-SC 501.92 7.31 72.06 500.72 447.72 8.57 25.25 6036589.75 516785.80 MWD+IFR-AK-CAZ-SC 592.47 7.59 81.51 590.51 537.51 11.23 36.64 6036592.43 516797.19 MWD+IFR-AK-CAZ-SC 685.22 9.32 86.62 682.25 629.25 12.57 50.20 6036593.81 516810.74 MWD+IFR-AK-CAZ-SC 776.00 12.34 82.36 771.41 718.41 14.30 67.16 6036595.57 516827.69 MWD+IFR-AK-CAZ-SC 865.26 16.86 80.56 857.76 804.76 17.69 89.39 6036599.01 516849.91 MWD+IFR-AK-CAZ-SC 954.44 20.13 81.24 942.33 889.33 22.15 117.32 6036603.53 516877.83 MWD+IFR-AK-CAZ-SC 1043.47 22.60 78.58 1025.23 972.23 27.87 149.24 6036609.33 516909.73 MWD+IFR-AK-CAZ-SC 1136.36 27.80 75.90 1109.26 1056.26 36.69 187.77 6036618.23 516948.24 MWD+IFR-AK-CAZ-SC 1231.77 32.50 73.75 1191.74 1138.74 49.29 233.98 6036630.93 516994.42 MWD+IFR-AK-CAZ-SC 1332.41 34.99 72.71 1275.42 1222.42 65.43 287.50 6036647.20 517047.89 MWD+IFR-AK-CAZ-SC 1427.67 36.47 72.13 1352.74 1299.74 82.24 340.53 6036664,12 517100.88 MWD+IFR-AK-CAZ-SC 1520.83 40.69 73.42 1425.56 1372.56 99.41 396.01 6036681.41 517156.32 MWD+IFR-AK-CAZ-SC 1615.19 42.52 72.60 1496.11 1443.11 117.72 455.93 6036699.86 517216.18 MWD+IFR-AK-CAZ-SC 1711.00 44.68 71.16 1565.49 1512.49 138.29 518.71 6036720.56 517278.91 MWD+IFR-AK-CAZ-SC 1804.34 45.51 71.83 1631.38 1578.38 159.27 581.40 6036741.68 517341.55 MWD+IFR-AK-CAZ-SC 1904.42 51.25 70.53 1697.83 1644.83 183.43 652.17 6036766.00 517412.26 MWD+IFR-AK-CAZ-SC 1994.69 51.94 70.72 1753.90 1700.90 206.89 718.91 6036789.61 517478.94 MWD+IFR-AK-CAZ-SC 2091.78 52.77 66.58 1813.22 1760.22 234.89 790.47 6036817.76 517550.43 MWD+IFR-AK-CAZ-SC 2184.35 52.93 64.01 1869.13 1816.13 265.72 857.49 6036848.75 517617.38 MWD+IFR-AK-CAZ-SC 2280.38 56.16 65.07 f•924.83 1871.83 299.33 928.11 6036882.51 517687.91 MWD+IFR-AK-CAZ-SC 2371.95 58.09 66.81 1974.53 1921.53 330.67 998.34 6036914.01 517758.06 MWD+IFR-AK-CAZ-SC 2491.07 62.01 68.31 2033.99 1980.99 370.03 1093.72 6036953.58 517853.34 MWD+IFR-AK-CAZ-SC 2624.71 61.21 70.46 2097.54 2044.54 411.43 1203.75 6036995.22 517963.27 MWD+IFR-AK-CAZ-SC 2715.89 63.91 72.75 2139.56 2086.56 436.94 1280.53 6037020.91 518039.98 MWD+IFR-AK-CAZ-SC 2810.18 61.11 73.60 2183.08 2130.08 461.16 1360.58 6037045.30 518119.97 MWD+IFR-AK-CAZ-SC Halliburton Company Survey Report Company: Kerr McGee Field: OLIKTOK POINT `.. Date: ' 1/23/2007 Time: 16:23:56 Page:... 2 Co-ordinate(NE) Reference: WeII: Oliktok Point I-1, True North Site: OLIKTOK POINT Vertica l (TVD) Reference: Oli ktok Point I-i i 53A Well: Oliktok Point I-1 Section (VS) Reference: Well (O.OON,O.OOE,6224Azi) Wellpath: Oliktok Point l-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 fC ft ft 2902.69 62.63 76.80 2226.70 2173.70 481.98 1439.44 6037066.30 518198.78 MWD+IFR-AK-CAZ-SC 2977.63 62.44 76.40 2261.26 2208.26 497.39 1504.12 6037081.85 518263.42 MWD+IFR-AK-CAZ-SC 3100.36 66.95 77.09 2313.71 2260.71 522.81 1612.10 6037107.51 518371.32 MWD+IFR-AK-CAZ-SC 3195.17 70.67 80.33 2347.98 2294.98 540.08 1698.76 6037124.98 518457.94 MWD+IFR-AK-CAZ-SC 3289.92 74.34 80.80 2376.46 2323.46 554.88 1787.89 6037139.98 518547.03 MWD+IFR-AK-CAZ-SC 3386.53 79.28 78.11 2398.50 2345.50 572.11 1880.32 6037157.42 518639.41 MWD+IFR-AK-CAZ-SC 3481.78 78.15 73.96 2417.15 2364.15 594.64 1970.95 6037180.15 518729.98 MWD+IFR-AK-CAZ-SC 3575.78 75.24 73.59 2438.78 2385.78 620.20 2058.77 6037205.90 518817.73 MWD+IFR-AK-CAZ-SC 3677.03 78.52 73.16 2461.76 2408.76 648.41 2153.24 6037234.32 518912.13 MWD+IFR-AK-CAZ-SC 3762.05 79.90 71.10 2477.68 2424.68 674.04 2232.72 6037260.13 518991.54 MWD+IFR-AK-CAZ-SC 3855.78 81.01 70.07 2493.22 2440.22 704.76 2319.90 6037291.05 519078.64 MWD+IFR-AK-CAZ-SC 3954.45 78.48 69.05 2510.79 2457.79 738.67 2410.87 6037325.15 519169.53 MWD+IFR-AK-CAZ-SC 4047.38 80.32 70.95 2527.88 2474.88 769.90 2496.70 6037356.57 519255.28 MWD+IFR-AK-CAZ-SC 4134.09 82.20 70.45 2541.06 2488.06 798.23 2577.58 6037385.08 519336.09 MWD+IFR-AK-CAZ-SC 4237.96 82.05 70.96 2555.29 2502.29 832.22 2674.69 6037419.29 519433.11 MWD+IFR-AK-CAZ-SC 4334.51 82.32 71.49 2568.42 2515.42 863.01 2765.26 6037450.28 519523.60 MWD+IFR-AK-CAZ-SC 4430.75 82.00 71.61 2581.54 2528.54 893.18 2855.70 6037480.65 519613.96 MWD+IFR-AK-CAZ-SC 4517.51 81.90 71.08 2593.69 2540.69 920.66 2937.09 6037508.31 519695.28 MWD+IFR-AK-CAZ-SC 4620.73 81.36 71.74 2608.72 2555.72 953.22 3033.88 6037541.08 519791.99 MWD+IFR-AK-CAZ-SC 4711.30 83.10 70.21 2620.96 2567.96 982.47 3118.71 6037570.53 519876.74 MWD+IFR-AK-CAZ-SC 4802.46 81.75 71.01 2632.98 2579.98 1012.47 3203.94 6037600.72 519961.90 MWD+IFR-AK-CAZ-SC 4894.24 80.63 71.07 2647.04 2594.04 1041.94 3289.72 6037630.37 520047.60 MWD+IFR-AK-CAZ-SC 4990.63 78.38 71.17 2664.59 2611.59 1072.60 3379.39 6037661.24 520137.20 MWD+IFR-AK-CAZ-SC 5091.21 77.00 71.11 2686.04 2633.04 1104.37 3472.38 6037693.21 520230.10 MWD+IFR-AK-CAZ-SC 5185.02 75.97 71.12 2707.96 2654.96 1133.89 3558.68 6037722.93 520316.33 MWD+IFR-AK-CAZ-SC 5280.64 75.44 70.16 2731.57 2678.57 1164.61 3646.10 6037753.84 520403.67 MWD+IFR-AK-CAZ-SC 5376.55 73.84 71.56 2756.98 2703.98 1194.93 3733.47 6037784.36 520490.96 MWD+IFR-AK-CAZ-SC 5470.74 73.70 72.56 2783.30 2730.30 1222.79 3819.50 6037812.40 520576.92 MWD+IFR-AK-CAZ-SC 5565.09 73.06 73.84 2810.29 2757.29 1248.92 3906.05 6037838.73 520663.40 MWD+IFR-AK-CAZ-SC 5657.93 73.75 73.71 2836.80 2783.80 1273.78 3991.48 6037863.78 520748.77 MWD+IFR-AK-CAZ-SC 5754.36 73.57 74.15 2863.93 2810.93 1299.40 4080.40 6037889.59 520837.62 MWD+IFR-AK-CAZ-SC 5847.77 73.06 73.04 2890.75 2837.75 1324.66 4166.23 6037915.05 520923.39 MWD+IFR-AK-CAZ-SC 5940.07 72.89 73.07 2917.78 2864.78 1350.39 4250.65 6037940.96 521007.74 MWD+IFR-AK-CAZ-SC 6032.65 73.06 71.29 2944.89 2891.89 1377.48 4334.93 6037968.24 521091.95 MWD+IFR-AK-CAZ-SC 6129.75 72.54 71.70 2973.60 2920.60 1406.92 4422.89 6037997.87 521179.83 MWD+IFR-AK-CAZ-SC 6225.98 71.76 71.64 3003.10 2950.10 1435.72 4509.84 6038026.87 521266.71 MWD+IFR-AK-CAZ-SC 6320.56 72.43 70.21 3032.18 2979.18 1465.14 4594.89 6038056.47 521351.68 MWD+IFR-AK-CAZ-SC 6412.89 72.56 69.46 3059.95 3006.95 1495.49 4677.55 6038087.01 521434.26 MWD+IFR-AK-CAZ-SC 6507.75 72.70 68.88 3088.27 3035.27 1527.68 4762.16 6038119.39 521518.80 MWD+IFR-AK-CAZ-SC 6602.38 73.47 67.08 3115.80 3062.80 1561.63 4846.09 6038153.53 521602.64 MWD+IFR-AK-CAZ-SC 6697.09 73.15 66.87 3143.00 3090.00 1597.11 4929.58 6038189.19 521686.04 MWD+IFR-AK-CAZ-SC 6790.63 72.55 64.10 3170.59 3117.59 1634.19 5010.90 6038226.45 521767.27 MWD+IFR-AK-CAZ-SC 6885.08 72.57 61.79 3198.90 3145.90 1675.17 5091.14 6038267.61 521847.41 MWD+IFR-AK-CAZ-SC 6977.18 71.21 59.85 3227.53 3174.53 1717.85 5167.56 6038310.45 521923.73 MWD+IFR-AK-CAZ-SC 7065.17 69.13 56.17 3257.39 3204.39 1761.67 5237.76 6038354.43 521993.82 MWD+IFR-AK-CAZ-SC 7166.26 68.13 56.90 3294.22 3241.22 1813.58 5316.29 6038406.51 522072.22 MWD+IFR-AK-CAZ-SC 7260.31 67.86 53.94 3329.47 3276.47 1863.06 5388.07 6038456.15 522143.89 MWD+IFR-AK-CAZ-SC 7354.28 68.14 53.53 3$64.67 3311.67 1914.60 5458.32 6038507.84 522214.01 MWD+IFR-AK-CAZ-SC 7448.66 68.45 51.64 3399.58 3346.58 1967.88 5527.96 6038561.27 522283.53 MWD+IFR-AK-CAZ-SC 7544.44 67.84 48.67 3435.24 3382.24 2024.82 5596.21 6038618.36 522351.64 MWD+IFR-AK-CAZ-SC 7638.85 69.83 46.24 3469.33 3416.33 2084.35 5661.06 6038678.03 522416.34 MWD+IFR-AK-CAZ-SC 7734.35 72.50 44.56 3500.16 3447.16 2147.82 5725.40 6038741.64 522480.53 MWD+IFR-AK-CAZ-SC Halliburton Company Survey Report Company:. Kerr McGee Field: OLIKTOK POINT Dater 1/23/2007 Time: 16:23:56 Page: 3 Co-ordinate(NE) Reference: Wel(: Oliktok Point 1-1, True North Site: OLIKTOK POINT Vertical (TVD) Reference: Oliktok' Poinf l-1:53.0 Well: Oli ktok Point I-1 Sec[ion (VS) Reference: Well (O.OON,O.OOE,62.24Azi) Wellpath: Oli ktok Point I-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 7830.21 72.87 40.85 3528.70 3475.70 2215.06 5787.45 6038809.01 522542.43 MWD+IFR-AK-CAZ-SC 7924.50 71.08 36.13 3557.89 3504.89 2285.20 5843.25 6038879.27 522598.06 MWD+IFR-AK-CAZ-SC 8018.69 72.23 29.51 3587.56 3534.56 2360.29 5891.66 6038954.46 522646.30 MWD+IFR-AK-CAZ-SC 8112.50 72.09 27.12 3616.31 3563.31 2438.90 5934.01 6039033.16 522688.47 MWD+IFR-AK-CAZ-SC 8207.70 68.59 24.24 3648.34 3595.34 2519.66 5972.87 6039114.00 522727.14 MWD+IFR-AK-CAZ-SC 8300.47 69.29 20.61- 3681.68 3628.68 2599.67 6005.88 6039194.08 522759.97 MWD+IFR-AK-CAZ-SC 8396.25 70.06 19.71 3714.95 3661.95 2683.98 6036.83 6039278.45 522790.73 MWD+IFR-AK-CAZ-SC 8488.42 71.40 14.08 3745.39 3692.39 2767.20 6062.09 6039361.71 522815.80 MWD+IFR-AK-CAZ-SC 8585.87 71.73 13.97 3776.21 3723.21 2856.89 6084.50 6039451.45 522838.00 MWD+IFR-AK-CAZ-SC 8680.95 69.86 8.51 3807,50 3754.50 2944.91 6102.01 6039539.49 522855.31 MWD+IFR-AK-CAZ-SC 8776.12 70.27 8.21 3839,95 3786.95 3033.42 6115.02 6039628.03 522868.12 MWD+IFR-AK-CAZ-SC 8870.53 70.41 6.98 3871,72 3818.72 3121.55 6126.77 6039716.17 522879.67 MWD+IFR-AK-CAZ-SC 8952.19 70.22 7.73 3899,22 3846.22 3197.80 6136.61 6039792.44 522889.34 MWD+IFR-AK-CAZ-SC - 8990.00 70.22 7.73 3912.02 3859.02 3233.06 6141.40 6039827.70 522894.04 ~ PROJECTED to TD e f • E (3 • US ALASKA Page 1 of 2 Daily Drilling Report WELL NAME: OLIKTOK POINT I - 1 REPORT DATE: 11/30/2006 REPORT NO.: 1 RIG NAME: NABORS 245-E RIG NO.: 245 -E TIME: MD/TVD: 573/571 SUPERVISOR: Gary Goerlich /John Salario FORMATION: PROGRESS: 573 ROTATING HOURS: 5.90 DAILY INTANGIBLE: $0.00 DAILY TANGIBLE: $0.00 DAILY MUD: $0 DAILY COST: $136,384 CUM. INTANGIBLE: $0.00 CUM. TANGIBLE: $0.00 CUM MUD COST: $0 CUM TOTAL: $136,384 CURRENT STATUS: Drill ahead as per directional plan AUTH TOTAL: 6,858,000 MUD DATA ADDITIVES(Sacks) BIT RECORD DEVIATION SURVEYS Time 22:00 Baracarb 25 ' 50 Bit No. 1 MD(ft) Inc(*) Azi( °) Mud Type POLYMER Therma thin 45 Serial No. 5100109 501.0 7.31 73.04 Density(ppg) 9.15 Walnut hulls M 50 Size 13 -1/2 413.0 6.11 73.88 Viscosity(s/qt) 55 LIME 50 Type 321.0 4.60 71.43 pH /Elec Stab 9.00/0.0 DriI -N -Slide 450 Jets 1/2/3 13/16 234.0 2.09 65.15 API /HTHP 8.0/0.0 Dextrid 50 Jets 4/5/6 144.6 0.63 65.13 PV/YP 16/29 Baracor 700 45 TFA 0.719 Gels 7/8/9 Baroseal M 40 MD Out Pf /Mf 0.10/0.30 STeeI seal 50 Footage 483.0 Pm 0.20 INVENTORY g Hours 5.90 CI -(ppm) 55,000 DIESEL(KIP) , ROP 81.9 Ca +(ppm) 0 Footage Cum 483.0 Tot Solids /LGE0.00 /18.8 Hours Cum 5.90 MUD LOGGING HGS /Sand 0.0/1.50 OTTOM HOLE ASSY WOB Min /Max 12/12 / Background Gas MBT 0.0 Hook Load 100 RPM Min /Max 60/60 / _ Connection Gas Losses(bbl) TQ On /Off 2000 / 2000 HHP 78.3 Oil Ratio 0 St Wt Up 80 Noz. Vel. 194.2 FC 2.0 St Wt Dn 80 Why Pulled? BOP TEST DATA Oil Pct 0.00 St Wt Rt 80 Last BOP Test H2O Pct( %) 93.50 BHA Length 852.32 BHA Hours 1 Last BOP Drill TIME BREAKDOWN MUD PUMPS Last Casing Drlg 0.00 Csg /Cmt 0.00 OD 0 Trip 0.00 WOC 0.00 PUMP #1 PUMP #2 MD Shoe 0.0 Circ 0.00 LOG 0.00 Pressure EMW 0.00 Survey 0.00 Problem 0.00 SPM - Date Rig Ser 0.00 Other 5.00 Liner Size Rig DT 0.00 NU BOPs 0.50 Stroke RU/RD 0.00 Stand by 0.00 Output DC 1(ft/min) 68.2 68.2 KICKOFFS /PLUGBACKS WEATHER Drill Pipe(ft/min) MD KO 0.0 Daily High Temp 1 Slow Pump SPM /Press TVD KO 0.0 10m Wind Spd 1 Slow Pump SPM /Press MD Plugback Sig Sea Ht Slow Pump SPM /Press Plugback TVD OPERATIONS From To Dur. Code Subcode Operation (hr) 2 6:30 1 7:30 1.00 26 A Make up bit and assocated subs. 7:30 8:00 0.50 15 Surface test diverter stack and mud lines. Blow down topdrive. 8:00 10:30 2.50 26 Make up bit and motor smart tools and orient same. 10:30 13:30 3.00 02 B Control drill 75 to 90 feet circ dean 13:30 15:30 2.00 06 B POOH re -orient BHA. 15:30 16:30 1.00 06 B RIH to 90'. 16:30 17:30 1.00 02 B Drill 90' to 182'. (� yy} 17:30 19:00 1.50 26 Set back 1 stand hwdp p/u jars RIH. y 1 • 19:00 0:00 5.00 02 B Drill 182' to 573'. No accidents no pollution. P/U 80K S/O 80K i Rot 80K Torque 1/1K ROP 120 Printed: 11 /30/2006 3:57:OOAM • • US ALASKA Page 2 of 2 Daily Drilling Report WELL NAME: OLIKTOK POINT I - 1 REPORT DATE: 11/30/2006 REPORT NO.: 1 RIG NAME: NABORS 245 -E RIG NO.: 245 -E TIME: MD/TVD: 573/571 SUPERVISOR: Gary Goerlich /John Salario FORMATION: PROGRESS: 573 ROTATING HOURS: 5.90 DAILY INTANGIBLE: $0.00 DAILY TANGIBLE: $0.00 DAILY MUD: $0 DAILY COST: $136,384 CUM. INTANGIBLE: $0.00 CUM. TANGIBLE: $0.00 CUM MUD COST: $0 CUM TOTAL: $136,384 CURRENT STATUS: Drill ahead as per directional plan AUTH TOTAL: 6,858,000 OPERATIONS a k ti n RPM surface 60 RPM DH 175 WOB 12K Printed: 11/30/2006 3:57:00AM • • OLIKTOK POINT I -1 _ Kerr -McGee Oil & Gas Corporation 1-Dec-06 OCS No. NABORS 245 -E Daily Drilling Report AFE: 14017007 Supervisor b Goerlich /John Sa Report No. 2 DFS 2 Daily Cost 267,504 Rig Phone # I 907 771 - 9221 Spud Date DOL 2 Cum. Cost 419,738 API # # Personnel 66 Pot Wtr Est. Cost 6,858,000 MD,ft 2355 Accidents(Y /N)? N Drill WU Current SpeedfDir / TVD,ft 1972 Pollution(Y /N)? Fuel Bow Heading ° Progress,ft 1782 Last Abandon Drill Fuel Used Water Depth ft Last BOP Test Last Fire Drill Bulk Barite Air Gap ft Next BOP Test Last Pit Drill Barite RKB to MSL 52 ft Diverter Function Last MMS Visit Gel RKB to ML ft Current Status : Drilling at 2355 as per directional plan. 24 Hr Forecast : Drill to casing point, CBU, POOH, RIH, CBU. POOH and rack back BHA, Rig up and run casing. T ;` ,' Time Hours T/C Time Summary 573 0:00 24.00 P Drilled ahead, sliding and rotating as /per directional drillers instructions, from 573' to 2355' MD. Pump sweeps as needed. Take directional survies every stand. P/U 130 S/O 125 Rot 115 Torque 5K ROP 77 RPM surface 50 RPM DH 113 WOB 10/30K _ Interval daily DH mud loss I Interval DH mud loss I - Cum well mud loss! 0.00 Total Hours 24.00 Seas I Wind 12.0 Visibility 10 Temperature -8 I Forecast -8, WC -27, PC Riser Tension Anchor Tension 1/2 3/4 5/6 7/8 ROC 0.000 PU weight,kip 130 Wellhead Angle Diff angle I Avg BGG 0 weight,kip 125 Casing Detail (AS Run) Permit to Drill Information OD," Wt,ppf Grade,% Conn,psi MD,ft TVD,ft TOL,ft Csg Tst,psi LOT, EMW,ppg CSG OD MD TOO Csg Test LOT LnT `ep 16 65.000 L -80 arc 115.0 115.0 0.0 Mud Report Density Viscosity PV YP Gels API WL HTHP WL FC c,rd: MBT PH Pm Cl- Ca+ LOS Percent 9.30 55 16 25 9/20 7.6 0.0 2.0 0.00 2.0 8.50 0.20 45,000 0 3.90 9.20 58 16 27 9/14 8.0 2.0 1.5 8.50 0.10 50,000 3.20 Bits Report Daily Mud $ 20,947 Cum Mud 53,316 Bit No. Size Make Type Ser.No. WOB RPM JETS In Out Hours ROP Grade 1 13 -1/2 Huges MX1 5100109 10/30 163/163 3X16 2,355.0 23.18 101.6 _L. 0 Hydraulics Pumps Strokes I Liner Pressure SPM GPM DH GPM Jet VOI Bit PD HHP AvDp AvDc P/U Wt Rot Wt S/O Wt Trq,FT -lb l I 01 12 6 1500 105 439.54 450.00 200.9 330.4 86.7 68.2 130 115 125 5000 Assembly Components Directional Surveys Item Stb oD 00 ID F /Neck Length Total DEPTH ANGLE Azm /Dr ND V. Sec N( +) /S( -) E( +)W( -) OLS,deg :, ( °) (1 ) (ft) (ft) ,,<- (ft) ( °) ( °) (It) (ft) Mill Tooth Tri -Cone Bit 13 -1/2 2 1.00 1.00 1,427.0 36.47 72.13 1,352.2 1,352.2 86.7 339.3 1.61 Bent Housing 8 5 0.75 30.70 31.70 1820.0 40.69 73.42 1,424.9 1,424.9 103.8 394.7. 4,62 Integral Blade Stabilizer 8 3 3.50 8.00 39.70 1,615.0 42.52 72.60 1,495.9 1,495.9 122.3 455.0 2.01 Restrictor Sub 8 2 2.00 2.03 41.73 1,711.0 44.68 71.16 1,565.4 1,565.4 142.9 517.9 2.48 MWD Tool 8 2 2.50 23.68 65.41 1,804.0 45.51 71.83 1,631.1 1,631.1 163.8 580.4 1.03 MWD Tool 8 2 6.00 20.45 85.86 1,904.0 51.25 70.53 1,697.5 1,697.5 187.9 651.1 5.82 Float Sub 8 2 -1/2 2.00 2.75 88.61 1,994.0 51.94 70.72 1,753.4 1,753.4 211.3 717.7 0.78 DrillCofar 8 2 -3/4 - 5.00 31.02 119.63 2,091.0 52.77 66.58 1,812.6 1,812.6 239.3 789.2 3.49 Drill Collar 8 2 -3/4 5.00 30.96 150.59 2,184.0 52.93 64.01 1,868.8 1,868.8 270.3 856.5 2.21 Drill Collar 8 2-3/4 5.00 30.98 181.57 Tar' ett ttformatiott Directional Drilling Plan Drilling Jar 7 -3/4 2 -3/4 1.61 33.75 215.32 Heavy Weight Ddb Pipe 5 3 905.92 1,121.24 ;. TargetName MD,ft TVD,ft Ko.,ft EOB,ft MaxAnele Azim den • • OLIKTOK POINT I -1 _ Kerr -McGee Oil & Gas Corporation 2-Dec-06 06 OCS No. NABORS 245 -E Daily Drilling Report AFE: 14017007 Supervisor John Salario Report No. 3 DFS 3 Daily Cost 182,317 Rig Phone # 907 771 - 9221 Spud Date l DOL 3 Cum. Cost 602,055 API # # Personnel 1 68 Pot Wtr Est. Cost 6,858,000 MD,ft 2573 Accidents(Y /N)? N Drill Wtr Current Speed/Dir / TVD,ft 2072 Pollution(Y /N)? Fuel Bow Heading ° Progress,ft 218 Last Abandon Drill Fuel Used Water Depth ft Last BOP Test Last Fire Drill Bulk Barite Air Gap ft Next BOP Test Last Pit Drill Barite RKB to MSL 52 ft Diverter Function Last MMS Visit ,Gel RKB to ML ft (,u rrentatus : Running 10 -3/4" casing. 24 Hr Forecast • Run casing and cmt . t . e Hours TIC Ie , - 4 " ,...R- ,, Time Summary r:r0 2.00 P Dn to casing point at 2573' MD / 2072' TVD bottom of permafrost 2091' MD / 1815' TVD. P/U 130 S/O 125 Rot 115 Torque 5K ROP 77 RPM surface 50 RPM DH 113 WOB 10/30K 2573 2:00 1.50 P Circ and Cond Mud 2573 3:30 3.50 T Fix top drive /grabber bit, backed out saver sub 2573 7:00 2.50 P POOH f/ 2573' to 2400'. 45K over pull, Backream & pump out f/ 2400 to 1785' at max drag 65K. Pre -tour safety mtg. 1785 9:30 1.00 P RIH f/1785' 52545', wash and ream f/ 2545' to 2573' 2573 10:30 2.50 P Ciro 2 X BU & pump 50 bbls Hi Vis sweep & sirs hole clean 445 GPM 2573 13:00 7.00 P POOH 52289' tight and swabbing, 40K over pull, back ream 5575', blow down t.d. - continue out of hole 5215' w/BHA std bk, flex collar, lay down mud motor. Pre-Tour safety mtg. 0 20:00 3.00 P Lay down bails, elevators, R/U to run casing. PJSM w/casiers 0 23:00 1.00 P RIH w/9 -5/8 csg, baker lock shoe. No accidents, no polution reported Interval daily DH mud loss I (Interval DH mud loss I - ICum well mud loss' 0.00 Total Hours 24.00 Seas I Wind 21.0 Visibility 7 Temperature 25 Forecast np 25, WC 9, F Riser Tension Anchor Tension 1/2 3/4 5/6 7/8 ROC 0.000 PU weight,kip Wellhead Angle Diff angle I Avg BGG 5O weight,kip Casing Detail (AS Run) Permit to Drill Information OD," Wt,ppf Grade,% Conn,psi MD,ft TVD,ft TOL,ft Csg Tst,psi LOT, EMw,ppg cso op MD Tvo Csg Test Loc M Lnr fop 16 65.000 L - 80 B i C 115.0 115.0 0.0 Mud Report Density Viscosity PV YP Gels API WL HTHP WL FC °r MBT PH Pm Cl- Ca+ Lcs Percent 9.30 43 14 16 5/14 17 9.40 46 14 17 6/8 7.6 0.0� 2.0 0.00 2.5 8.50 0.10x46,000 0 4.10 Bits Report Daily Mud $ 5,733 Cum Mud 47,627 Bit No, Size Make Type Ser.No. WOB RPM JETS In Out Hours ROP Grade 1 13 - 1/2 Huges MX1 5100109 3X16 2,573.0 0 Hydraulics Pumps Strces 1 Liner Pressure SPM GPM IMISIAIJet Vel Bit PD HHP AvDp AvDC P/U Wt Rot Wt S/O Wt Trq,FT -Ib 68.2 Assembly Components Directional Surveys Item Stb OD OD ID F /Neck Length Total DEPTH ANGLE Azm /Dr TVD V. Sec N( +) /S( -) E( +)W( - DL5.deg I') ( „) (") (ft) (ft) (ft) (ft) O C) (ft) (ft) (ft) Mill Tooth Tri-Cone Bit 13 -1/2 2 1.00 1.00 1,711.0 44.68 71.16 1,565.4 1,565.4 142.9 517.9 2.48 Bent Housing 8 5 0. 75 30.70 31.70 1,804.0 45.51 71.83 1,631.1 1,631.1 163.8 580.4 1.03 Integral Blade Stabilizer 8 3 3.50 8.00 39.70 1,904.0 51.25 70.53 1,697.5 1,697.5 187.9 651.1 5.82 Reshrictor Sub 8 2 2.00. 2.03 41.73 1,994.0 51.94 70.72 1,753.4 1,753.4 211.3 717.7 0.78 MWD Tool 8 2 2.50 23.68 65.41 2,091.0 52.77 66.58 1,812.8 1,812.6 239.3 789.2 3.49 MWD Tool 8 2 6.00 20.45 85.86 2,184.0 52.93 64.01 1,868.8 1,868.8 270.3 856.5 2.21 Float Sub 8 2 -1/2 2.00 2.75 88.61 2,280.4 56.16 65.07 1,924.7 1,924.7 304.0 927.4 3.47 Drill Collar 8 2 -3/4 5.00 31.02 119.63 2,371.9 58.09 66.81 1,974.4 1,974.4 335.3 997.6 2.64 Drill Collar 8 2 -3/4 5.00 30.96 150.59 2,491.1 62.01 68.31 2,033.9 2,033.9 374.7 1,093.0 3.47 Drill Collar 8 2 5.00 30.98 1e1.57 Target Information Directional Drilling Plan Drilling Jar 7-3/4 2-3/4 161 33.75 215 32 . Heavy Weight Drill Pipe 5 3 905.92 1,121.24 1.,, TargetName MD,ft TVD,ft 'o•,ft EOB Max Ant le Azim,der • • • US ALASKA Daily Drilling Report Well: OLIKTOK POINT I - 1 Report No.: 4 Report Date: 12/3/2006 Project: NORTH SLOPE Site: OLIKTOK POINT Rig Name /No.: NABORS 245- E/245 -E Event: DRILLING Start Date: 11/29/2006 Spud Date: 11/29/2006 AFE No.: 14017007 Currency: Active Datum: KB ©52.Oft (KELLY BUSHING) UWI: OLIKTOK POINT I - 1 WELL INFO API No.: Block: 1Supervisor: John Salario Engineer: Walter Quay DEPTH DAYS MD: 2573 ft TVD: 2072 ft Progress: 0 ft Avg ROP: 0.0 ft/hr Rotating Hours: Cum Rot Hrs: 31.10 hr DFS: 4 days Est Days: 22.00 days MD Auth: 8,681.1 ft Last Casing: STATUS Current Status: Nipple down diverter. 24 Hr Summary: Run casing and cement. Set 10 3/4" shoe at 2541' MD. Nipple down 24 Hr Forecast: Nipple down diverter, Nipple up BOP stack. COSTS Daily Cost: 270,448 $ I Authorized Cost: 6,858,000 $ I Cumulative Total: 872,503 $ I Expenditure: 13% OPERATION SUMMARY From To Dur. Phase Code Subco Time MD From MD To Operation (hr) de2 Code (ft) (ft) 0:00 7:00 7.00 CSGINI 12 A P 0 2541 Run 61 jts 10 3/4" ( 2541') 45.5# L -80 csg w/ BTC connx. Land csg w/ shoe @ 2541' MD / 2057' TVD Float collar @ 2456' No mud losses while running csg. 7:00 8:00 1.00 CSGINI 12 B P 2541 2541 RD Franks csg fill up tool & csg tools. Blowdown top drive. RU Howco cmt head. 8:00 10:00 2.00 CSGIN1 05 A P 2541 2541 Stage up mud pump to max rate 9 bpm w/ 500 psi. No mud losses while circ. Max BU gas 123 units. Hold pre cmt job safety mtg 10:00 13:30 3.50 CSGIN1 12 C P 2541 2541 Pump 5 bbls water & pressure test lines to 4000 psi. Pump 50 bbls Alpha spsacer © 10 ppg. Drop plug. Mix & pump lead slurry 334.6 bbls ( 453 sx.) Permafrost L cmt @ 10.7 ppg yield 4.15 cuft / sk ( 1880 cult) mix water 20.3 gal / sk Mix & pump tail slurry 46.3 bbls ( 225 sxs) Premium G Cmt @ 15.8 ppg yield 1.15 cuft /sk ( 259 cuft) mix water 5 gal / sk Drop top plug & displace w/ 10 bbls water & switch to rig pumps & continue disp w/ 229 bbls mud. Bump plug W/ 1000 PSI Floats held OK Cmt back @ surface. 13:30 17:00 3.50 CSGINI 14 P Flush stack and surface equiptment. Rig down same. Lay down landing joint, and clean up floor. 17:00 0:00 7.00 CSGINI 14 P Nipple down diveerter stack. No accidents or spills reported HOLE SECTIONS Section Name Section Effective ID MD (ft) TVD (ft) Hole Section Start Hole Section End Type Hole ( ") Top Base Top Base Date/Time Date/Time Diameter DRILL SURFACE Open Hole (1 13 -1/2 115 2573 11/30/2006 12:OOAM 12/2/2006 7:OOAM HOLE Casing 9 -15/16 9 -15/16 115 2573 11/30/2006 12:OOAM 12/2/2006 7:OOAM 12/3/2006 4:07:11AM Page 1 of 4 • • US ALASKA ; h Daily Drilling Report Well: OLIKTOK POINT I - 1 Report No.: 4 Report Date: 12/3/2006 Project: NORTH SLOPE , Site: OLIKTOK POINT Rig Name /No.: NABORS 245- E/245 -E Event: DRILLING Start Date: 11/29/2006 Spud Date: 11/29/2006 AFE No.: 14017007 Currency: Active Datum: KB @52.0ft (KELLY BUSHING) UWI: OLIKTOK POINT I - 1 MUD Daily Mud: 1280 $ 1 Cum Mud Cost: $ Mud Desc Density Viscosity Date/Time MD PV YP Cl- Ca+ pH Pm Pf Mf (ppg) (s /qt) Check (cp) (Ibf /100ft (ppm) (ppm) (cc) (cc) (ft) POLYMER 9.40 45 12/2/2006 19:30 2,573.0 14 18 46,000 0 8.50 0.10 0.05 0.40 BHA No.# 1 Bit No.: Date/Time In: 12/1/2006 12:OOAM Date/Time Out: 12/2/2006 12:OOAM Purpose: Cement Surface Casing BHA Length: 0.00 (ft) Min ID: 2 ( ") Weight (Above /Below) Jars: MD Footage String Wt Drag TQ On /Off (ft) (ft) Up / Down 1 Rot (kip) (ft-Ibf) (kip) Assembly Components Component Type # of Length OD ID Connection Weight Grade Pin Serial No. Left Fish Neck Joints (ft) ( ") (") OD Name (PPf) Box Or Length OD (") Right (ft ('�) Spiral Bit Details Bit No. Size Model No. Class IADC Code Serial No. Jets MD In MD Out I- O -D -L -B G O -R (32nd ") (ft) (ft) TODAY CUMULATIVE MD (ft) TODAY Current Flow SPP P Bit % @ Bit HHP Hours Footage ROP Hours Footage ROP (kip) RPM Rate (psi) (psi) (hp) (hr) (ft) (ft/hr) Cum Cum Cum (rpm) (gpm) (hr) (ft) ( ft/hr) PUMP /HYDRAULICS No. Make /Model Stroke Liner Size Efficiency Pressure SPM Output Kill SPM /Pressure /Depth ( ") ( ") ( %) (psi) (spm) (gpm) (spm /psi /ft) ANCHOR TENSION 1 2 3 4 5 6 7 8 9 10 11 12 Tension (kip) Direction ( °) SURVEYS MD Inc Azi TVD N/S E/W V. Sec DLeg Short Name (ft) ( °) ( °) (ft) (ft) (ft) (ft) ( °/100ft) 2,491.1 62.01 68.31 2,033.9 374.7 1,093.0 374.7 3.47 MUD SYSTEM Gas Volumes Losses Avg Conn Gas ( %): Total String Vol (bbl): 0.0 Surface Total (bbl) : Max Connection Gas ( %): Total Annular Vol (bbl): 175.9 Subsurface Total (bbl) : 300.0 Avg Trip Gas ( %): Total Pit Vol (bbl): 0.0 Max Trip Gas ( %): Lines (bbl): 0.0 Avg Background Gas ( %): Max Background Gas ( %): Total System Vol (bbl): 175.9 Total (bbl): 300.0 12/3/2006 4:07:11AM Page 2 of 4 US ALASKA Daily Drilling Report Y 9 p � ° Report Date: 12/3/2006 T KP POINT Report p WeILOLIK O O p Project: N RTH SLOPE Site: OLIKTOK POINT Rig Name /No.: NABORS 245- E/245 -E O 9 Event: DRILLING Start Date: 11/29/2006 Spud Date: 11/29/2006 AFE No.: 14017007 Currency: Active Datum: KB @52.0ft (KELLY BUSHING) UWI: OLIKTOK POINT I - 1 MUD PRODUCTS Product Units Used Day Cost ($) Quantity End Pac L SACKS 7.00 0.00 113.00 Lump sum cost 1.00 1,279.60 26.00 SAFETY Status DSLTI: DSLTA: 4.00 (days) STOP Cards: Inspections /Drills Drill Type: Last Drill: Last Fire /Boat Drill: Last Evacuation Drill: Last Weekly Rig Check: Daily Inspection Done: Last Safety Inspection: Last Safety Meeting: 12/1/2006 Last Csg Press Test: Last Csg Press: Last Pit Drill: Last Diverter Drill: Test COM.: 12/1/2006 Ton Miles: Last H2S Drill: Last Trip Drill: BOP Pressure Tests Last BOP Pressure Test: Next Test Due: Last BOP Function Test: Last BOP Drill: Standpipe Manifold: Kelly Hose: Diverter Pressure: 1,000.0 (ps Annular Press: Upper Rams: Lower Rams: Choke Line: Choke Manifold: Kill Line: PERSONNEL Total No. of People: 61 Company No. People Company No. People Sperry Sun 7 NABORS 27 KMG 4 ACS 1 Remote Medical 1 PRA 1 BAROID 2 Peak 5 ASRC 5 DUS 8 MATERIALS Product Name WeightNol Per Usage Quantity End Product Name WeightNol Per Usage Quantity End Unit (kip) Unit (kip) DIESEL, Rig Gallons 2,478.00 24,360.00 WATER, DRILLING, I Gallons 0.00 DIESEL, Camp Gallons 287.00 5,440.00 WATER, POTABLE, i Gallons 4,216.00 5,642.00 SIJPPORT CRAFT Name I Arrival Comments ( Arrival Date Departure Date WEATHER Time: 23:53 I Weather: Tmp 26, WC 14, PgComments: Daily High /Low Temp: / (Visibility: 10(mi) Ceiling: 110m Wind Spd: 13.0(knots) (Gust Spd: 21.0(knots) CURRENTS MAX/SIG WAVE SWELL VESSEL Speed Dir Ht. Dir Period Ht. Heave Pitch Roll Offset Heading (knots) ( (ft) (0) (sec) (ft) 1 (ft) ( ( (ft) ( / / / 12/3/2006 4:07:11AM Page 3 of 4 9 • 4 . US ALASKA Daily Drilling Report Well: OLIKTOK POINT I - 1 !Report No.: 4 1 Report Date: 12/3/2006 Project: NORTH SLOPE Site: OLIKTOK POINT Rig Name /No.: NABORS 245- E/245 -E Event: DRILLING Start Date: 11/29/2006 Spud Date: 11/29/2006 AFE No.: 14017007 Currency: Active Datum: KB @52.0ft (KELLY BUSHING) UWI: OLIKTOK POINT I - 1 INPUT FLUID Oil: 0.0 (bbl) H2O: 0.0 (bbl) Other: 0.0 (bbl) Cum Oil: Cum H2O: Cum Other: FLUID RECOVERED Oil: -5.0 (bbl) H2O: -5.0 (bbl) Other: -5.0 (bbl) Cum Oil: 0.0 (bbl) Cum H2O: 0.0 (bbl) Cum Other: 0.0 (bbl) FLUID LEFT TO RECOVER Oil: I 5.0 (bbl) I H2O: I 5.0 (bbl)1 Other: I 5.0 (bbl) Cum Oil: Cum H2O: Cum Other: REMARKS 12/3/2006 4:07:11AM Page 4 of 4 • • US ALASKA Daily Drilling Report Well: OLIKTOK POINT I - 1 Report No.: 5 Report Date_ 12/4/2006 Project: NORTH SLOPE Site: OLIKTOK POINT Rig Name /No.: NABORS 245- E/245 -E Event: DRILLING Start Date: 11/29/2006 Spud Date: 11/29/2006 AFE No.: 14017007 Currency: Active Datum: KB @52.0ft (KELLY BUSHING) UWI: OLIKTOK POINT I - 1 WELL INFO API No.: IBlock: 'Supervisor: John Salario 'Engineer: Walter Quay DEPTH DAYS MD: 2573 ft TVD: 2072 ft Progress: 0 ft Avg ROP: 0.0 ft/hr Rotating Hours: Cum Rot Hrs: 31.10 hr DFS: 5 days Est Days: 22.00 days MD Auth: 8,681.1 ft Last Casing: STATUS Current Status: N/U BOPs 24 Hr Summary: Clean stack, nipple down and nipple up. Clean pits in mud room and general house keeping. 24 Hr Forecast: Test all BOPE. Lay down 8" BHA and pick up 6" BHA. Pick up drill pipe. COSTS Daily Cost: 169,327 $ I Authorized Cost: 6,858,000 $ 'Cumulative Total: 1,153,518 $ I Expenditure: 17% OPERATION SUMMARY From To Dur. Phase Code Subco Time MD From MD To Operation (hr) del Code (ft) (ft) 0:00 11:00 11.00 CSGIN1 14 P Nipple down diverter system 11:00 18:00 7.00 CSGIN1 14 P Nipple up and test multi bore wellhead to 5000 PSI for ten minutes. Nipple up 11 5/8" x 13 5/8" drilling spool, 24" drilling spool, 41" drilling spool and set stack, Clean pits and change shaker screens. RKB to top Vetco WH 31.6' Top Vetco WH to AMSL 21.5 18:00 0:00 6.00 CSGIN1 14 P Change out 2" Oteco kill valve. Make up choke kill line and tighten all BOP bolts. No accidents, no spills reported. HOLE SECTIONS Section Name Section Effective ID MD (ft) TVD (ft) Hole Section Start Hole Section End Type Hole ( ") Top Base Top Base Date/Time Date/Time Diameter ( ") MUD Daily Mud: 2212 $ ' Cum Mud Cost: $ Mud Desc Density Viscosity Date/Time MD PV YP Cl- Ca+ pH Pm Pf Mf (ppg) (s /qt) Check (cp) (Ibf /100ft (ppm) (ppm) (cc) (cc) (ft) POLYMER 9.40 40 12/3/2006 19:30 2,573.0 13 10 46,000 0 8.50 0.10 0.05 0.40 PUMP /HYDRAULICS No. I Make /Model Stroke I Liner Size Efficiency Pressure SPM Output Kill SPM /Pressure /Depth (") O ( %) (Psi) (SPm) (Pm) (spm /psi /ft) 1 I ANCHOR TENSION 1 2 3 4 5 6 7 8 9 10 11 12 Tension (kip) Direction ( °) SURVEYS MD Inc MI TVD N/S E/W V. Sec DLeg Short Name (ft) ( °) (°/10011) 3. (ft) (ft) (ft) (ft) ( °/100 2,491.1 62.01 68.31 2,033.9 374.7 1,093.0 374.7 3.47 12/4/2006 2:07:16AM Page 1 of 3 9 • US ALASKA Daily Drilling Report Well: OLIKTOK POINT I - 1 Report No.: 5 1 Report Date: 12/4/2006 Project: NORTH SLOPE Site: OLIKTOK POINT Rig Name /No.: NABORS 245- E/245 -E Event: DRILLING Start Date: 11/29/2006 Spud Date: 11/29/2006 AFE No.: 14017007 Currency: Active Datum: KB @52.0ft (KELLY BUSHING) UWI: OLIKTOK POINT I - 1 MUD SYSTEM Gas Volumes Losses Avg Conn Gas ( %): Total String Vol (bbl): 37.0 Surface Total (bbl) : Max Connection Gas ( %): Total Annular Vol (bbl): 212.9 Subsurface Total (bbl) : Avg Trip Gas ( %): Total Pit Vol (bbl): 0.0 Max Trip Gas ( %): Lines (bbl): 0.0 Avg Background Gas ( %): Max Background Gas ( %): Total System Vol (bbl): 249.9 Total (bbl): 0.0 MUD PRODUCTS Product Units Used Day Cost ($) Quantity End X -Cide 206 GAL 6.00 0.00 30.00 Lump sum cost 1.00 2,211.59 25.00 Aldacide G BBLS 1.00 0.00 0.00 SAFETY Status DSLTI: DSLTA: 5.00 (days) STOP Cards: Inspections /Drills Drill Type: Last Drill: Last Fire /Boat Drill: Last Evacuation Drill: Last Weekly Rig Check: Daily Inspection Done: Last Safety Inspection: Last Safety Meeting: 12/1/2006 Last Csg Press Test: Last Csg Press: Last Pit Drill: Last Diverter Drill: Test COM.: 12/1/2006 Ton Miles: Last H2S Drill: Last Trip Drill: BOP Pressure Tests Last BOP Pressure Test: Next Test Due: Last BOP Function Test: Last BOP Drill: Standpipe Manifold: Kelly Hose: Diverter Pressure: 1,000.0 (ps Annular Press: Upper Rams: Lower Rams: Choke Line: Choke Manifold: Kill Line: PERSONNEL Total No. of People: 62 Company No. People Company No. People Sperry Sun 7 NABORS 29 KMG 4 ACS 1 Remote Medical 1 PRA 1 BAROID 2 Peak 5 ASRC 4 DUS 8 MATERIALS Product Name Weight/Vol Per Usage Quantity End Product Name Weight/Vol Per Usage Quantity End Unit (kip) Unit (kip) DIESEL, Rig Gallons 2,660.00 30,450.00 WATER, DRILLING, I Gallons 0.00 DIESEL, Camp Gallons 5,440.00 WATER, POTABLE, I Gallons 5,642.00 SUPPORT CRAFT Name 1 Arrival Comments ( Arrival Date (Departure Date 12/4/2006 2:07:16AM Page 2 of 3 • • U S ALASKA ,:t.,:::.:, mss Daily Drilling Report Well: OLIKTOK POINT I - 1 Report No.: 5 I Report Date: 12/4/2006 Project: NORTH SLOPE Site: OLIKTOK POINT Rig Name /No.: NABORS 245- E/245 -E Event: DRILLING Start Date: 11/29/2006 Spud Date: 11/29/2006 AFE No.: 14017007 'Currency: Active Datum: KB @52.Oft (KELLY BUSHING) UWI: OLIKTOK POINT I - 1 WEATHER Time: 23:53 I Weather: Tmp 15, WC -4,BlolComments: Daily High /Low Temp: / 'Visibility: 1(mi) Ceiling: I10m Wind Spd: 25.0(knots) (Gust Spd: 25.0(knots) CURRENTS MAX/SIG WAVE SWELL VESSEL Speed Dir Ht. Dir Period Ht. Heave Pitch Roll Offset Heading (knots) ( (ft) ( (sec) (ft) (ft) ( ( (ft) ( / / / INPUT FLUID Oil: 0.0 (bbl) H2O: 0.0 (bbl) Other: 0.0 (bbl) Cum Oil: Cum H2O: Cum Other: FLUID RECOVERED Oil: -5.0 (bbl) H2O: -5.0 (bbl) Other: -5.0 (bbl) Cum Oil: 0.0 (bbl) Cum H2O: 0.0 (bbl) Cum Other: 0.0 (bbl) FLUID LEFT TO RECOVER Oil: I 5.0 (bbl) I H2O: I 5.0 (bbl) Other: 5.0 (bbl) Cum Oil: Cum H2O: 1 Cum Other: REMARKS 12/4/2006 2:07:16AM Page 3 of 3 . • US ALASKA Daily Drilling Report Well: OLIKTOK POINT 1 - 1 Report No.: 6 I Report Date: 12/5/2006 Project: NORTH SLOPE Site: OLIKTOK POINT Rig Name /No.: NABORS 245- E/245 -E Event: DRILLING Start Date: 11/29/2006 Spud Date: 11/29/2006 AFE No.: 14017007 Currency: Active Datum: KB @52.0ft (KELLY BUSHING) UWI: OLIKTOK POINT I - 1 WELL INFO API No.: 'Block: 'Supervisor: John Salario 'Engineer: Walter Quay DEPTH DAYS MD: 2573 ft TVD: 2072 ft Progress: 0 ft Avg ROP: 0.0 ft/hr Rotating Hours: Cum Rot Hrs: 31.10 hr DFS: 6 days Est Days: 22.00 days MD Auth: 8,681.1 ft Last Casing: STATUS Current Status: Testing BOP's 24 Hr Summary: Finish nippling up BOP's. Test BOP's 24 Hr Forecast: Finish testing BOP's. PU 9 7/8" BHA & TIH, PU 5" DP to finish well. COSTS Daily Cost: 167,422 $ I Authorized Cost: 6,858,000 $ ' Cumulative Total: 1,325,753 $ ' Expenditure: 19% OPERATION SUMMARY From To Dur. Phase Code Subco Time MD From MD To Operation (hr) de2 Code (ft) (ft) 0:00 14:00 14.00 CSGSUR 14 P N/U BOPs and replace IBOP in top drive 14:00 0:00 10.00 CSGSUR 15 P RU test lines & fill stack. Tesedt 5" pipe rams ( upper) 250 / 3000 psi Tested annular 250 / 300 psi Tested choke manifold, HCR & kill v/v to 250 1 3000 psi Tested TIW &'BOP on top drive 250 / 3000 psi Tested h2s gas alarms & pit level alarms Jeff Jones (AOGCC) on location to witness all tests Cement returns - 100 bbl type -L 10.7 ppg No accidents or pollution reported HOLE SECTIONS Section Name Section Effective ID MD (ft) TVD (ft) Hole Section Start Hole Section End Type Hole ( ") Top Base Top Base Date/Time Date/Time Diameter ( MUD Daily Mud: 3715 $ ' Cum Mud Cost: $ Mud Desc Density Viscosity Date/Time MD PV YP Cl- Ca+ pH Pm Pf Mf (ppg) (s /qt) Check (cp) (tbf /100ft (ppm) (ppm) (cc) (cc) (ft) POLYMER 9.30 42 12/3/2006 19:30 2,573.0 11 11 43,000 0 8.80 0.10 0.05 0.30 PUMP /HYDRAULICS No. Make /Model Stroke Liner Size Efficiency Pressure SPM Output Kill SPM /Pressure /Depth I ( ") ( ") ( %) (psi) (spm) (gpm) I (spm /psi /ft) ANCHOR TENSION 1 2 3 4 5 6 7 8 9 10 11 12 Tension (kip) Direction ( °) 12/5/2006 1:49:25AM Page 1 of 3 ,,* 7 ` US ALASKA w* Daily Drilling Report Well: OLIKTOK POINT 1 - 1 Report No.: 6 Report Date: 12/5/2006 Project: NORTH SLOPE Site: OLIKTOK POINT Rig Name /No.: NABORS 245- E/245 -E Event: DRILLING Start Date: 11/29/2006 Spud Date: 11/29/2006 AFE No.: 14017007 Currency: Active Datum: KB @52.0ft (KELLY BUSHING) UWI: OLIKTOK POINT I - 1 SURVEYS MD Inc Azi TVD N/S E/W V. Sec DLeg Short Name lift) ( ( °) (ft) (ft) (ft) (ft) ( °/100ft) 2,491.1 62.01 68.31 2,033.9 374.7 1,093.0 374.7 3.47 MUD SYSTEM Gat Volumes Losses Avg Conn Gas ( %): Total String Vol (bbl): 0.0 Surface Total (bbl) : Max Connection Gas ( %): Total Annular Vol (bbl): 0.0 Subsurface Total (bbl) : Avg Trip Gas ( %): Total Pit Vol (bbl): 0.0 Max Trip Gas ( %): Lines (bbl): 0.0 Avg Background Gas ( %): Max Background Gas ( %): Total System Vol (bbl): 0.0 Total (bbl): 0.0 MUD PRODUCTS Product - Units Used Day Cost ($) Quantity End Potassium chloride SACKS 168.00 0.00 614.00 Barazan D+ SACKS 6.00 0.00 84.00 Lump sum cost 1.00 3,714.62 24.00 POtassium hydroxide SACKS 1.00 0.00 40.00 SAFETY Status DSLTI: DSLTA: 6.00 (days) STOP Cards: Inspections /Drills Drill Type: Last Drill: Last Fire /Boat Drill: Last Evacuation Drill: Last Weekly Rig Check: Daily Inspection Done: Last Safety Inspection: Last Safety Meeting: 12/1/2006 Last Csg Press Test: Last Csg Press: Last Pit Drill: Last Diverter Drill: Test COM.: 12/1/2006 Ton Miles: Last H2S Drill: Last Trip Drill: BOP Pressure Tests Last BOP Pressure Test: 12/5/2006 Next Test Due: 12/19/2006 Last BOP Function Test: Last BOP Drill: Standpipe Manifold: 3,000.0 (ps Kelly Hose: 3,000.0 (psi) Diverter Pressure: Annular Press: 3,000.0 (ps Upper Rams: 3,000.0 (ps Lower Rams: 3,000.0 (psi) Choke Line: 3,000.0 (ps Choke Manifold: 3,000.0 (ps Kill Line: 3,000.0 (ps PERSONNEL Total No. of People: 61 Company No. People Company No. People Sperry Sun - DDs, MWD /LWD, 7 NABORS - Rig Hands 29 KMG - Company Men & HSE 4 ACS - Alaska Cleanseas (Spill Tech) 1 Remote Medical - Medic 1 PRA - Geologist 1 BAROID - Mud Engineers 2 Peak - Truck Drivers 5 ASRC - Comp. Support, Exp. & Bear Watch 3 DUS - Cooks & Housekeeping 8 MATERIALS Product Name WeightNol Per Usage Quantity End Product Name WeightNol Per Usage Quantity End Unit (kip) Unit (kip) DIESEL, Rig Gallons 2,108.00 28,342.00 WATER, DRILLING, I Gallons 0.00 DIESEL, Camp Gallons 362.00 4,751.00 WATER, POTABLE, 4 Gallons 3,689.00 6,014.00 12/5/2006 1:49:25AM Page 2 of 3 • • US ALASKA t Daily Drilling Report Well: OLIKTOK POINT I - 1 Report No.: 6 Report Date: 12/5/2006 Project: NORTH SLOPE Site: OLIKTOK POINT Rig Name /No.: NABORS 245- E/245 -E Event: DRILLING Start Date: 11/29/2006 Spud Date: 11/29/2006 AFE No.: 14017007 Currency: Active Datum: KB @52.0ft (KELLY BUSHING) 1 UWI: OLIKTOK POINT I - 1 SUPPORT CRAFT irM Name 1 Arrival Comments I Arrival Date 'Departure Date WEATHER Time: 00:11 'Weather: Tmp 10, WC -4, MlComments: Daily High /Low Temp: / 'Visibility: 10(mi) Ceiling: 110m Wind Spd: 12.0(knots) (Gust Spd: 12.0(knots) CURRENT MAX/SIG WAVE SWELL VESSEL Speed Ht. Dir Period Ht. Heave Pitch Roll Offset Heading (knots) (ft) ( (sec) (ft) (ft) ( ( (ft) ( / / / INPUT FLUID Oil: 0.0 (bbl) H2O: 0.0 (bbl) Other: 0.0 (bbl) Cum Oil: Cum H2O: Cum Other: FLUID RECOVERED Oil: -5.0 (bbl) H2O: -5.0 (bbl) Other: -5.0 (bbl) Cum Oil: 0.0 (bbl) Cum H2O: 0.0 (bbl) Cum Other: 0.0 (bbl) FLUID LEFT TO RECOVER Oil: I 5.0 (bbl) I H2O: I 5.0 (bbl)' Other: I 5.0 (bbl) Cum Oil: Cum H2O: Cum Other: REMARKS 12/5/2006 1:49:25AM Page 3 of 3 • • US ALASKA Daily Drilling Report Well: OLIKTOK POINT I - 1 ' Report No.: 7 Report Date: 12/6/2006 Project: NORTH SLOPE Site: OLIKTOK POINT Rig Name /No.: NABORS 245-E/245 -E Event: DRILLING Start Date: 11/29/2006 Spud Date: 11/29/2006 AFE No.: 14017007 Currency: Active Datum: KB @52.0ft (KELLY BUSHING) UWI: OLIKTOK POINT I - 1 WELL INFO API No.: 'Block: (Supervisor: John Salario 'Engineer: Walter Quay DEPTH DAYS MD: 2573 ft TVD: 2072 ft Progress: 0 ft Avg ROP: 0.0 ft/hr Rotating Hours: Cum Rot Hrs: 31.10 hr DFS: 7 days Est Days: 22.00 days MD Auth: 8,681.1 ft Last Casing: STATUS Current Status: Picking up 5" DP 24 Hr Summary: Finish testing BOP's & RD test equipment. Slip & cut drill line. LD 8" BHA f/ derrick. Repair broken chain on lay down skate. 24 Hr Forecast: PU enough 5" DP to finish well. PU 9 7/8" bit & BHA & TIH. Test csg to 2500 psi. Drill out shoe track + 20' new hole. Circ. LOT COSTS i Daily Cost: 164,044 $ I Authorized Cost: 6,858,000 $ I Cumulative Total: 1,493,783 $ ' Expenditure: 22% OPERATION SUMMARY From To Dur. Phase Code Subco Time MD From MD To Operation (hr) de2 Code (ft) (ft) 0:00 3:00 3.00 CSGIN1 15 P Finished testing BOPs. Tested Blind rams & Lower 3 1/2 x 6" VBR 250 / 3000 psi LEL meth gas detectors on bell nipple failed to operate, replace & retested OK Accumulator drawdown test ( 1400 psi ) failed due to leaking 4 way valve on Koomey for annular 3:00 5:00 2.00 CSGIN1 15 P R/D test equipment 5:00 9:00 4.00 CSGIN1 09 P Slip & cut 100' drilling line. service top drive, blocks 9:00 16:00 7.00 CSGIN1 06 D P C/o bails & elevators & RU to handle BHA. LD 8" BHA f/ derrick 16:00 0:00 8.00 CSGIN1 08 A P Repair broken chain on lay down skate. Finished repairs @ 0000 hrs prepaing to PU 5" Dp Replaced annular 4 way valve on Koomey unit & replace bladders in 2 bottles on Koomey. @ 20:00 hrs Pressure Accumulator system back to 3200 psi & perform drawdown test. 1550 psi. Good test No accidents or pollution reported HOLE SECTIONS t Section Name Section Effective ID MD (ft) TVD (ft) Hole Section Start Hole Section End Type Hole ( ") Top Base Top Base Date/Time Date/Time Diameter ( ") . MUD Daily Mud: 2790 $ 1 Cum Mud Cost: $ Mud Desc Density Viscosity Date/Time MD PV YP CI- Ca+ pH Pm Pf Mf (ppg) (s /qt) Check (cp) (Ibf /100ft (ppm) (ppm) (cc) (cc) (ft) POLYMER 9.30 44 12/3/2006 19:30 2,573.0 14 17 43,000 0 9.00 0.20 0.10 0.50 PUMP /HYDRAULICS No. f Make /Model Stroke Liner Size Efficiency Pressure SPM Output Kill SPM /Pressure /Depth I C') I ( ") ( %) (Psi) (sPm) (gpm) (spm /psi /ft) 12/6/2006 1:49:22AM Page 1 of 3 • • US ALASKA � Daily Drilling Report yr Well: OLIKTOK POINT I - 1 Report No.: 7 Report Date: 12/6/2006 Project: NORTH SLOPE Site: OLIKTOK POINT Rig Name /No.: NABORS 245- E/245 -E Event: DRILLING Start Date: 11/29/2006 Spud Date: 11/29/2006 AFE No.: 14017007 Currency: Active Datum: KB @52.0ft (KELLY BUSHING) UWI: OLIKTOK POINT I - 1 ANCHOR TENSION 1 2 3 4 5 6 7 8 9 10 11 12 Tension (kip) Direction ( °) SURVEYS MD Inc Azi TVD N/S EM/ V. Sec DLeg Short Name (ft) ( ( (ft) (ft) (ft) (ft) ( °/100ft) 2,491.1 62.01 68.31 2,033.9 374.7 1,093.0 374.7 3.47 MUD SYSTEM Gas Volumes Losses Avg Conn Gas ( %): Total String Vol (bbl): 0.0 Surface Total (bbl) : 7.6 Max Connection Gas ( %): Total Annular Vol (bbl): 0.0 Subsurface Total (bbl) : Avg Trip Gas ( %): Total Pit Vol (bbl): 0.0 Max Trip Gas ( %): Lines (bbl): 0.0 Avg Background Gas ( %): Max Background Gas ( %): Total System Vol (bbl): 0.0 Total (bbl): 7.6 MUD PRODUCTS Product Units Used Day Cost ($) Quantity End Potassium chloride SACKS 56.00 0.00 784.00 Walnut hulls M SACKS 5.00 0.00 79.00 Barazan D+ SACKS 10.00 0.00 74.00 Lump sum cost 1.00 2,789.89 23.00 POtassium hydroxide SACKS 4.00 0.00 36.00 SAFETY Status DSLTI: DSLTA: 7.00 (days) STOP Cards: Inspections /Drills Drill Type: Last Drill: Last Fire /Boat Drill: Last Evacuation Drill: Last Weekly Rig Check: Daily Inspection Done: Last Safety Inspection: Last Safety Meeting: 12/5/2006 Last Csg Press Test: Last Csg Press: Last Pit Drill: 12/5/2005 Last Diverter Drill: Test COM.: 12/5/2006 Ton Miles: Last H2S Drill: Last Trip Drill: BOP Pressure Tests Last BOP Pressure Test: 12/5/2006 Next Test Due: 12/12/2006 Last BOP Function Test: 12/5/2006 Last BOP Drill: 12/5/2006 Standpipe Manifold: 3,000.0 (ps Kelly Hose: 3,000.0 (psi) Diverter Pressure: Annular Press: 3,000.0 (ps Upper Rams: 3,000.0 (ps Lower Rams: 3,000.0 (psi) Choke Line: 3,000.0 (ps Choke Manifold: 3,000.0 (ps Kill Line: 3,000.0 (ps PERSONNEL Total No. of People: 63 Company No. People Company No. People Sperry Sun - DDs, MWD /LWD, 7 NABORS - Rig Hands 31 KMG - Company Men & HSE 4 ACS - Alaska Cleanseas (Spill Tech) 1 Remote Medical - Medic 1 PRA - Geologist 1 BAROID - Mud Engineers 2 Peak - Truck Drivers 5 ASRC - Comp. Support, Exp. & Bear Watch 3 DUS - Cooks & Housekeeping 8 12/6/2006 1:49:22AM Page 2 of 3 • • US ALASKA Daily Drilling Report Well: OLIKTOK POINT I - 1 Report No.: 7 Report Date: 12/6/2006 Project: NORTH SLOPE Site: OLIKTOK POINT Rig Name /No.: NABORS 245- E/245 -E Event: DRILLING I Start Date: 11/29/2006 Spud Date: 11/29/2006 AFE No.: 14017007 Currency: Active Datum: KB @52.0ft (KELLY BUSHING) UWI: OLIKTOK POINT I - 1 MATERIALS Product Name WeightNol Per Usage Quantity End Product Name Weight/Vol Per Usage Quantity End Unit (kip) Unit (kip) DIESEL, Rig Gallons 4,570.00 23,772.00 WATER, DRILLING, I Gallons 0.00 DIESEL, Camp Gallons 294.00 4,187.00 WATER, POTABLE, i Gallons 3,441.00 6,169.00 SUPPORT CRAFT Name I Arrival Comments 1 Arrival Date Departure Date WEATHER Time: 23:53 1 Weather: Tmp 16, WC 9, CdiComments: Daily High /Low Temp: / (Visibility: 10(mi) Ceiling: 110m Wind Spd: 3.0(knots) (Gust Spd: 3.0(knots) CURRENTS MAX/SIG WAVE SWELL VESSEL Speed Dir Ht. Dir Period Ht. Heave Pitch Roll Offset Heading (knots) ( °) (ft) ( °) (sec) (ft) (ft) ( ( (ft) ( / / / INPUT FLUID Oil: 0.0 (bbl) H2O: 0.0 (bbl) Other: 0.0 (bbl) Cum Oil: Cum H2O: Cum Other: FLUID RECOVERED Oil: -5.0 (bbl) H2O: -5.0 (bbl) Other: -5.0 (bbl) Cum Oil: 0.0 (bbl) Cum H2O: 0.0 (bbl) Cum Other: 0.0 (bbl) FLUID LEFT TO RECOVER Oil: I 5.0 (bbl) I H2O: I 5.0 (bbl)) Other: I 5.0 (bbl) Cum Oil: Cum H2O: Cum Other: REMARKS 12/6/2006 1:49:22AM Page 3 of 3 . • US ALASKA Daily Drilling Report Well: OLIKTOK POINT I - 1 Report No.: 8 Report Date: 12/7/2006 Project: NORTH SLOPE Site: OLIKTOK POINT Rig Name /No.: NABORS 245- E/245 -E Event: DRILLING Start Date: 11/29/2006 Spud Date: 11/29/2006 AFE No.: 14017007 Currency: Active Datum: KB @52.0ft (KELLY BUSHING) UWI: OLIKTOK POINT I - 1 WELL INFO API No.: 'Block: ISupervisor: John Salario 'Engineer: Walter Quay DEPTH DAYS MD: 2573 ft TVD: 2072 ft Progress: 0 ft Avg ROP: 0.0 ft/hr Rotating Hours: Cum Rot Hrs: 31.10 hr DFS: 8 days Est Days: 22.00 days MD Auth: 8,681.1 ft Last Casing: STATUS Current Status: PU 9 7/8" BHA, downloading MWD tools 24 Hr Summary: PU 5" Dp & rack back in derrick. Make repairs to lay down Skate. C/O double pin sub on top drive. PU 9 7/8" BHA 24 Hr Forecast: Finish PU 9 7/8" BHA & TIH to F.C. Test csg to 2500 psi. Drill out FC, cmt & shoe + 20' new hole. Circ BU. LOT. Drill ahead 9 7/8" hole COSTS Daily Cost: 147,596 $ I Authorized Cost: 6,858,000 $ I Cumulative Total: 1,639,704 $ I Expenditure: 24% OPERATION SUMMARY From To Dur. Phase Code Subco Time MD From MD To Operation (hr) del Code (ft) (ft) 0:00 8:00 8.00 CSGIN1 06 D P PU 5" Drill pipe & rack back in derrick 8:00 8:30 0.50 CSGIN1 08 A T Repair faulyt switch on Lay down Skate 8:30 11:30 3.00 CSGIN1 06 D P Continue PU 5" DP & rack back in derrick 11:30 12:00 0.50 CSGIN1 08 A T Repair short in wiring on Skate control panel 12:00 13:00 1.00 CSGIN1 06 D P Finish PU 5" DP. Total 219 jts picked up in 12 hrs (avg 18 jts / hr ) 13:00 22:00 9.00 CSGIN1 08 A T Remove bottom clamps on top drive and remove remove double pin sub. Rig had difficulty in breaking out sub due to being overtorqued. Replaced w/ correct length double pin sub & reinstall clamps, bails & elevators. 22:00 0:00 2.00 CSGIN1 06 D P PU 9 7/8" rock bit ( MXL -1 V ), 7" sperry 7/8 motor w/ 1.5 deg bend, 9 1/2" NM IBS, MWD tools Distances f/ bit: Direction 35.46' GR 44.17' EWR 51.63' PWD 59.88' ALD 81.89' Neutron 93.44' sonic 122.73' No accidents or pollution reported HOLE SECTIONS Section Name Section . Effective ID MD (ft) TVD (ft) Hole Section Start Hole Section End Type Hole ( ") Top Base Top Base Date/Time Date/Time Diameter ( „) MUD Daily Mud: 0 $ 1 Cum Mud Cost: $ Mud Desc Density Viscosity Date/Time MD PV YP Cl- Ca+ pH Pm Pf Mf (ppg) (s /qt) Check (cp) (Ibf /100ft (ppm) (ppm) (cc) (cc) (ft) POLYMER 9.30 44 12/3/2006 19:30 2,573.0 14 17 44,000 0 8.90 0.00 0.10 0.33 PUMP /HYDRAULICS No. Make /Model Stroke Liner Size Efficiency Pressure SPM Output Kill SPM /Pressure /Depth ( ") ( ") ( %) (psi) (spm) (gpm) (spm /psi /ft) 12/7/2006 1:51:16AM Page 1 of 3 • US ALASKA Daily Drilling Report Well: OLIKTOK POINT I - 1 Report No.: 8 I Report Date: 12/7/2006 Project: NORTH SLOPE Site: OLIKTOK POINT Rig Name /No.: NABORS 245- E/245 -E Event: DRILLING Start Date: 11/29/2006 Spud Date: 11/29/2006 AFE No.: 14017007 Currency: Active Datum: KB @52.0ft (KELLY BUSHING) UWI: OLIKTOK POINT I - 1 ANCHOR TENSION 1 2 3 4 5 6 7 8 9 10 11 12 Tension (kip) Direction ( °) SURVEYS MD Inc Azi TVD N/S ENV V. Sec DLeg Short Name (ft) ( ( (ft) (ft) (ft) (ft) ( 2,491.1 62.01 68.31 2,033.9 374.7 1,093.0 374.7 3.47 MUD SYSTEM Gas Volumes Losses Avg Conn Gas ( %): Total String Vol (bbl): 0.0 Surface Total (bbl) : Max Connection Gas ( %): Total Annular Vol (bbl): 0.0 Subsurface Total (bbl) : Avg Trip Gas ( %): Total Pit Vol (bbl): 0.0 Max Trip Gas ( %): Lines (bbl): 0.0 Avg Background Gas ( %): Max Background Gas ( %): Total System Vol (bbl): 0.0 Total (bbl): 0.0 MUD PRODUCTS Product I Units I Used I Day Cost ($) I Quantity End SAFETY Status DSLTI: DSLTA: 8.00 (days) STOP Cards: Inspections /Drills Drill Type: Last Drill: Last Fire /Boat Drill: Last Evacuation Drill: Last Weekly Rig Check: Daily Inspection Done: Last Safety Inspection: Last Safety Meeting: 12/5/2006 Last Csg Press Test: Last Csg Press: Last Pit Drill: 12/5/2005 Last Diverter Drill: Test COM.: 12/5/2006 Ton Miles: Last H2S Drill: Last Trip Drill: BOP Pressure Tests Last BOP Pressure Test: 12/5/2006 Next Test Due: 12/12/2006 Last BOP Function Test: 12/5/2006 Last BOP Drill: 12/5/2006 Standpipe Manifold: 3,000.0 (ps Kelly Hose: 3,000.0 (psi) Diverter Pressure: Annular Press: 3,000.0 (ps Upper Rams: 3,000.0 (ps Lower Rams: 3,000.0 (psi) Choke Line: 3,000.0 (ps Choke Manifold: 3,000.0 (ps Kill Line: 3,000.0 (ps PERSONNEL Total No. of People: 63 Company No. People Company No. People Sperry Sun - DDs, MWD /LWD, 9 NABORS - Rig Hands 30 KMG - Company Men & HSE 3 ACS - Alaska Cleanseas (Spill Tech) 1 Remote Medical - Medic 1 PRA - Geologist 1 BAROID - Mud Engineers 2 Peak - Truck Drivers 5 ASRC - Comp. Support, Exp. & Bear Watch 3 DUS - Cooks & Housekeeping 8 MATERIALS Product Name Weight/Vol Per Usage Quantity End Product Name WeightNol Per Usage Quantity End Unit (kip) Unit (kip) DIESEL, Rig Gallons 2,562.00 21,210.00 WATER, DRILLING, I Gallons 0.00 12/7/2006 1:51:16AM Page 2 of 3 9 • US ALASKA Daily Drilling Report Well: OLIKTOK POINT I - 1 Report No.: 8 Report Date: 12/7/2006 Project: NORTH SLOPE i Site: OLIKTOK POINT Rig Name /No.: NABORS 245- E/245 -E Event: DRILLING Start Date: 11/29/2006 Spud Date: 11/29/2006 AFE No.: 14017007 Currency: Active Datum: KB @52.0ft (KELLY BUSHING) UWI: OLIKTOK POINT I - 1 MATERIALS Product Name Weight/Vol Per Usage Quantity End Product Name Weight/Vol Per Usage Quantity End Unit (kip) Unit (kip) DIESEL, Camp Gallons 310.00 3,877.00 WATER, POTABLE, + Gallons 3,596.00 6,169.00 SUPPORT CRAFT Name . I Arrival Comments I Arrival Date (Departure Date WEATHER Time: 00:53 Weather: Tmp 16, WC 4, Cd Comments: Daily High /Low Temp: / Visibility: 10(mi) Ceiling: 10m Wind Spd: 7.0(knots) Gust Spd: 8.0(knots) CURRENTS MAX/SIG WAVE SWELL VESSEL Speed Dir Dir Period 11111.811111. Roll Offset Heading knots (° sec ft (°) / / / INPUT FLUID Oil: 0.0 (bbl) H2O: 0.0 (bbl) Other: 0.0 (bbl) Cum Oil: Cum H2O: Cum Other: FLUID RECOVERED Oil: -5.0 (bbl) H2O: -5.0 (bbl) Other: -5.0 (bbl) Cum Oil: 0.0 (bbl) Cum H2O: 0.0 (bbl) Cum Other: 0.0 (bbl) FLUID LEFT TO RECOVER Oil: I 5.0 (bbl) I H2O: I 5.0 (bbl) Other: 5.0 (bbl) Cum Oil: Cum H2O: Cum Other: REMARKS 12/7/2006 1:51:16AM Page 3 of 3 ~~~ Oliktok Point- KerrNbGee Injector #1 PB1 DIR I LWD EPTH-RKB(52' HOLE CASING MUO INFO MWD FORM MD TVD SIZE SPECS Cement Info INFO 16" 65 Iblft. L-80 80' 60' N!A ID. = 15.25" NIA MWDIGRIRES IIFR/Cas KOP:200' DLS 2.5°1100' 3-112' Kill SMrg 2,000' 400' Base Permafrost 2,095' 7.628 DLS 3.25°1100' il A l S ° Cement Pluo px ng a es: 59 a e Bbls za sx Est. Plug Top 2.397' +- i Ceiiient ~ ~ 15 6 ppg DLS 4°1100' PI ~ tt5 ft3sx Composite EZSV Plug 2 441' ` Est. Plug Tap 2,449' 3 ~ , yy il A l ° S iyua. ' `~ Cement Plua p~ ng es: 73 a , ~m 10-314" Casing Point 2.541' 2 072 .: - < -' 13-112" 68° F 67 9 Bbls. 302 sx Duad-COmbO ~'~`:~:: `: ~::~::<:~ 15.6 PP9 Geinerht ~ IIFR1CaS 115 ft3isx S?i~4::.i:::;'i Inter. Casino 7-5/8" Est Plug Btm 3.041' 29.71bslft L-80. BTC-M `: ID = 6.76" Inl Vieltl 7900 psi Collapse 6560 psi Est. Plug Top 7.200' ..:..::.:..::::..::. ~ ..............,._... Tag @ 7262' 62.6 Bbls. 307 sx 158ppg Fir5l Show 7,350' 3.360' _ .;~~;.ptjjp~. I. t t5 fy3/sx Est. Plug ToP 17.800' ESL Plug Top 18,400' 62.8 Bds. 307 sx 15.8 DP9 7.15 f13/sz 61.7 Bbls, 301 sx 15.8 PP9 1.15 ft3/sz 9.718^ ' 104° F ~ Water Based Mud Oliktok Point I-1 Well Bores.xls 2/6/2007 US ALASKA Cementing Report _ __~ Well: OLIKTOK POINT 1- 1 _-__ Report No.: 2 epo a e: Project: NORTH SLOPE Site: OLIKTOK POINT Rig Name/No.: NABORS 245-E/245-E Event: DRILLING Start Date: 11/29/2006 End Date: 1/1/2007 Spud Date: 11/29/2006 Active Datum: KB @52.Oft (KELLY BUSHING) UWI: OLIKTOK POINT I - 1 ' General Information Job Type: Plug Job Desc: Set 3 contagious plugs from Cement Job Start Date/Time: 12/26/2006 9:OOPM Job End Date/Time:12/29/2006 10:OOAM N2 Used: N C02: N Zone Isolated: N 7200' to 8990'. Set 4th plug @ 2441' to 3041'. Set 5th plug above EZ SV Contractor: HALLIBURTON Arrival Date/Time: 12/26/2007 Cementer: BOND A Assembly: SURFACE CASING Tubing/Casing Size: 10-3/4 (") MD Landed: 2,541.3 (ft) Hole Size: 13-1/2 (") Ground Temp: Air Temp: -18.0 (°F) Seabed Temp: Annulus Temp: BHT: Pipe Movement Pipe Movement: Rotating Date/Time (start-End): Rotating RPM: Rotating Torque (iniUavg/max): (ft-Ibf) Reciprocating Date/Time (start-End): Recap Drag Up/Down: - (kip) SPM: Stroke Length: Plug Detail Plug Type: SUSPENSION Plug MD Top: 2,388.0 (ft) Plug MD Base: 8,990.0 (ft) Drilled Out: Drilled Out Date: Pipe PuII Rate: Pipe Pulled Wet: WOC Time: Plug Status Stage No. Top Base. Date Status Comments ft ft 1 8,400.0 8,990.0 12/27/2006 C.I.P 2 7,800.0 8,400.0 12/27/2006 C.I.P. 3 7,200.0 7,800.0 12/27/2006 C.I.P. Tag W/Bit @7,262' 4 2,449.0 3,041.0 12/29/2006 C.I.P. 5 2,391.0 2,441.0 12/29/2006 C.I.P. EZSV Bridge Plug @ 2,441' Fluids (1 of 5) Fluid Type: CEMENT Fluid Name: DJ -PREMIUM 1 /31 /2007 10:27:08AM 1 US ALASKA Cementing Report -- - - __ _. Well: OLIKTOK POINT I - 1 Report No.: 2 Report Date: 12/29/2006 Project: NORTH SLOPE Site: OLIKTOK POINT Rig Name/No.: NABORS 245-E/245-E Event: DRILLING Start Date: 11/29/2006 End Date: 1/1/2007 Spud Date: 11/29/2006 Active Datum: KB @52.Oft (KELLY BUSHING) UWI: OLIKTOK POINT I - 1 Additives Name Type Amount Units Concentration Ibf/100ftz Concentration Unit CFR-3 HALAD 344 HR-5 DISPERSANT FLUID LOSS ADD RETARDER 0.20 0.50 0.10 % BWOC % BWOC % BWOC 1.400 3.500 0.700 GRAMS GRAMS GRAMS Fluids (2 of 5) Fluid Tpe CEMENT Fluid Name: DJ -PREMIUM Additives Name Type Amount Units Concentration Ibf/100ftz Concentration Unit HALAD 344 CFR-3 HR-5 FLUID LOSS ADD DISPERSANT RETARDER 0.50 0.20 0.10 % BWOC % BWOC % BWOC 3.500 1.400 0.700 GRAMS GRAMS GRAMS Fluids (3 of 5) Fluid Type: CEt~1ENT Fluid Name: DJ -PREMIUM Additives Name Type Amount Units Concentration Ibf/100ftz Concentration Unit - HALAD 344 CFR-3 HR-5 FLUID LOSS ADD DISPERSANT RETARDER 0.50 0.20 0.10 % BWOC % BWOC % BWOC 3.500 1.400 0.700 GRAMS GRAMS GRAMS Fluids (4 of 5) Fluid Type. CEP.gENT Fluid Name: DJ -PREMIUM Additives Name Type. Amount Units Concentration Ibf/100ftz Concentration Unit CACL2 ACCELERATOR 1.00 % BWOC 7.000 GRAMS Fluids (5 of 5) I Fluid Type: CEMENT Fluid Name: DJ -PREMIUM 1 /31 /2007 10:27:08AM 2 US ALASKA Cementing Report - Well: OLIKTOK POINT I - 1 - _ _ -_ Report No.: 2 Report Date: 12/29/2006 Project: NORTH SLOPE Site: OLIKTOK POINT Rig Name/No.: NABORS 245-E/245-E Event: DRILLING Start Date: 11/29/2006 End Date: 1/1/2007 Spud Date: 11/29/2006 Active Datum: KB @52.Oft (KELLY BUSHING) UWI: OLIKTOK POINT I - 1 Additives Name Type Amount Units Concentration Concentration Unit Ibf/100ft2 CACL2 ACCELERATOR 1.00 % BWOC 7.000 GRAMS Stages Stage No. Type MD Top MD Base Hole Size Initial/Final Casing Pressure Circulate Flow Circulate Circulate Prior Vol Retu " rns Volume Lost (ft) ' (ft) ( ") (Psi) Rate Press (hr) (bbl) (bbl) m si 1 SUSPENSION 8,400.0 8,990.0 9-7/8 336.0 900.0 2.00 5.0 PLUG 2 SUSPENSION 7,800.0 8,400.0 9-7/8 10.0 PLUG 3 SUSPENSION 7,200.0 7,800.0 9-7/8 3.0 PLUG 4 SUSPENSION 3,041.0 3,141.0 PLUG 5 SUSPENSION 2,388.0 2,440.0 PLUG Pumping Schedule Stage No.: 1 of 5 Flwd Pumped Slurry Slurry Disp Rate Disp Pressur Top Of Pumping Start Pumping End Operation Volume Rate Shutdown Foam Foam Gas Foam Gas Top M6 Base MD Final Final Fluid Date~fime Date/Time (bbl) (bbl/min) Time Job , Type Vol Used (bbl/min) (psi) (ft) min (sd~ DJ -PREMIUM - 8,400.00 8,990.00 8,400.0 12/26/2006 10:OOPM 12/26/2006 1023PM PUMP 61.0 5.0 N CEMENT CEMENT __ Stage No.: 2 of 5 Fluid Pumped Slurry Slurry Disp Rate Disp Pressur Top Of Pumping Start Pumping End Operation Volume Rate Shutdown Foam Foam Gas Foam Gas Top MD Base MD Final Final Fluid Date/Time Date/Time (bbl) (bbl/min) Time Job Type Vol Used (bbl/min). (Psi) (ft) min sc DJ -PREMIUM - 7,800.00 8,400.00 12/27/2006 1:40AM 12/27/2006 2:05AM PUMP 62.0 5.0 N CEMENT CEMENT Stage No.: 3 of 5 Flwd Pumped Slurry Slurry Disp Rate Disp Pressur Top Of Pumping Start Pumping End Operation Volume Rate Shutdown. Foam .Foam Gas Foam Gas Top MD Base MD `Final Final Fluid Date/Time Date/Time (bbl) (bbllmin) Time , Job Type:,: Vol;llsed (bbl/min) (psi) (ft) min ' ~~ ' DJ -PREMIUM - 7,200.00 7,800.00 7,200.0 12/27/2006 4:58AM 12/27/2006 5:22AM PUMP 62.0 5.0 N CEMENT CEMENT 1/31 /2007 10:27:08AM 3 US ALASKA Cementing Report Well: OLIKTOK POINT I - 1 Report No.: 2 .Report Date: 1 212 9/2 0 06 Project: NORTH SLOPE Site: OLIKTOK POINT Rig Name/No.: NABORS 245-E/245-E Event: DRILLING Start Date: 11/29/2006 End Date: 1/1/2007 Spud Date: 11/29/2006 Active Datum: KB @52.Oft (KELLY BUS HING) UWI: OLIKTOK POINT I - 1 Pumping Schedule Stage No.: 4 of 5 - - Fluid Pumped Slurry -Top MD --_ Slurry Base: MD Disp Rate Final (bbl/min) Disp Pressur Final (psi) Top Of Fluid (ft) Pumping Start Date/Time Pumping End Date/Time Operation Volume (bbl) Rate (bbl/min) Shutdown Time min Foam Job Foam Gas Type Foam.Gas Vol'Used sc£ DJ - PF.EMIUM - CE~.IENT 3,041.00 3,141.00 750.00 61.9 8.0 N --~ - - Stage No.: 5 of 5 Fluid Pumped Slurry Top MD Slurry Base MD Disp Rate Final (bbl/min) Disp Pressur Final (Psi) Top Of Fluid (ft) Pumping Start Daterfime Pumping End Date/Time Operation Volume (bbl) Rate (bbl/min) Shutdown. Time min Foam Job Foam Gas Type- Faam Gas Vol -Used scf) Remarks Plug # 1 - w/tail of 658' 2-7/8" tubing on 5" DP @ 8990', pumped 20 bbl H2O, 62 bbl of 15.8# G cement w/4 bbl H2O behind -Disp w/138 bbl mud, tst I .v.~. L uvuu - rvn to o4uu . rumpea loam u.r. w~pci ball. Circ out est 5 bbl cement. Plug # 2 - w/tail @ 8400', pumped 20 bbl H2O, 63 bbl os 15.8# G cement, 4 bbl H2O behind -Disp w/128 bbl mud. POH to 7800'. Pumped foam D.P. wiper ball. Had about 10 bbl cement return. Plug # 3 - w/tail @ 7800', pumped 20 bbl H2O, 63 bbl of 15.8# G cement, 4 bbl H2O. -Disp w/120 bbl mud. POH to 7000'. -Pumped foam wiper ball and CBU. Had about 3 bbl cement returns. C.I.P. @ 0530 Plug #4 -pump 20 bbls H2O, mix & pump 302 sks premium, 61.9 bbls @ 15.8 ppg, followed by 5 bbls H2O. Displaced w/rig pump @ 35 bbls, 350 stks, 8 bpm, 750 psi. pump ZO bbls H2O, mix 8~ pump 302 sks premium, 61.9 bbls @ 15.8 ppg, followed by 5 bbls H2O. Displaced w/rig pump @ 35 bbls, 350 stks, 8 bpm, 750 psi. Plug #5 -Pumped 20 bbl H2O, 5 bbl of 15.8 ppg type G Cement followed by 5 bbl H2O. Displaced w/35 bbl mud. Pulled 2 stds to 2260' and dropped wiper ball. AOGCC rep Chuck Scheve waived cement plug test, witnessed by Gary Goerlich. 1/31/2007 10:27:08AM 4 ~ ~ Subject: Operations Summary for Oliktok Point I-I From: "Quay, Walter" <Walter.Quay@asrcenergy.com> Date: Fri, 09 Feb 200." l-I:~Z:46 -0900 To: 5te~~~• ~,_ Day°ic,'stct~ davt~~:~i;ad~7~in.~tate.ak.us>~ Walter Quay (907)339-6341(0) (907)230-3961 (C) a:al.ta2:. at~.ay~%asr~:enercv .::om Content-Description: OperationSummary OPI-l.pdf ; " OperationSummary OPI-l.pdf Content-Type: application/octet-stream Content-Encoding: base64 ', ~ ~ US ALASKA Operation Summary Report Well: OLIKTOK POINT I -1 Project: NORTH SLOPE Site: OLIKTOK POINT Rig Name No: NABORS 245-E/245-E Event: DRILLING Start Date: 11/29/2006 ~ End Date: 1/1/2007 Spud Date 11/29/2006 Active Datum: KB @52.Oft (KELLY BUSHING) DWI: OLIKTOK POINT I - 1 Date Time Duration Phase Code Subeo' Time MD From Operation Start-End (hr) dQ2.,,.,, _ ,Code ~: (ft) 11;";i)'2i)06 6 3p ~ ".0 1 00 C.i~NDI ~~~ A F' P:1ake up bit arn_I ~iss~cizrted subs. 7:30 - 8:00 0.50 COND1 15 P Surface test diverter stack and mud lines. Blow down topdrive. 8:00 - 10:30 2.50 COND1 26 P Make up bit and motor smart tools and orient same. 10:30 - 13:30 3.00 COND1 02 B P Confrof drill 75 to 90 feet. circ clean 13:30 - 15:30 2.00 COND1 06 B P POOH re-orient BHA. 15:30 - 16:30 1.00 COND1 06 B P RIH to 90'. 16:30 - 17:30 1.00 COND1 02 B P Drill 90' to 182'. 17:30 - 19:00 1.50 COND1 26 P Set back 1 stand hwdp p/u jars RIH. 19:00 - 0:00 5.00 COND1 02 B P Drilt 182' to 573'. No accidents no pollution. P/U 80K S/O 80K Rot 80K Torque 1/1K ROP 120 RPM surface 60 RPM DH 175 WOB 12K 12/1/2006 0:00 - 0:00 24.00 COND1 02 A P 573 Drilled ahead, sliding and rotating as/per directional drillers instructions, from 573' to 2355' MD. Pump sweeps as needed. Take directional survies every stand. P; U 130 SIO 125 Rot 115 I orque 5K ROP 77 RPM surface 50 RPM DH 113 WOB 10/30K 12/2/2UU6 0:00 - 2:00 2.00 COND1 02 A P 2355 Drilled F/2355' to casing point at 2573' MD / 2072' TVD bottom of permafrost 2091' MD / 1815' TVD. P/U 130 S/O 125 Rot 115 Torque 5K ROP 77 RPM surtace 50 RPM DH 113 WOB 10/30K 2:00 - 3:30 1.50 COND1 05 A P 2573 Circ and Cond Mud 3:30 - 7:00 3.50 COND1 08 A T 2573 Fix top drive/grabber bit. backed out saver sub 7:00 - 9:30 2.50 COND1 06 B P 2573 POOH f/ 2573' to 2400'. 45K over pull, Backream & pump out f/ 2400 to 1785' w/ max drag 65K. Pre-tour safety mtg. 9:30 - 10:30 1.00 COND1 06 B P 1785 RIH f/1785' t/2545'. wash and ream f/ 2545' to 2573' 10:30 - 13:00 2.50 COND1 05 A P 2573 Circ 2 X BU & pump 50 bbls Hi Vis sweep &circ hole clean 445 GPM 2/8/2007 1:08:30AM ~~ l J US ALASKA Operation Summary Report __ _- ___ Well: OLIKTOK POINT I - 1 Project: NORTH SLOPE Site: OLIKTOK POINT Rig Name No: NABORS 245-El245-E Event: DRILLING Start Date: 11/29/2006 ~~ End Date: 1/1/2007 Spud Date: 11/29/2006 Active Datum: KB @52.Oft (KELLY BUSHING) , UWI: OLIKTOK POINT I - 1 Date Tinte Duration Phase Code Subco Time MD From Operation Start-End (hrl del Code (ft} 13:D0 - 20:00 ?.00 COND1 OEi ,4 P 2573 POOH t/2289' tight and swabbing, 40K ove: pull, back ream t/575', blow down t.d. -continue out of hole t/215' w/BHA std bk, flex collar, lay dowrrmud motor. Pre-Tour safety mtg. 20:00 - 23:00 3.00 CONDi 05 A P 0 Lay down bails, elevators, R/U to run casing. PJSM w/casiers 23:00 - 0:00 1.00 CSi~IN1 05 A P 0 RIH w/10-3/4" csg, baker lock shde. No accidents, no polution reported 12/3/2006 0:00 - 7:00 7.00 CSGINI 12 A P 0 ,Run 61 jts 10 3/4" (2541') 45.5# L-80 csg w/ BTC connx. Land csg w/ shoe @ 2541' MD / 2057' TVD Float collar @ 2456' No mud losses while running csg. 7:00 - 8:00 1.00 CSGINI 12 B P 2541 RD Franks csg fi}I up tool & csg tools. Blowdown top drive. RU Howco cmt head. 8:00 - 10:00 2.00 CSGIN1 05 A P 2541 Stage up mud pump to max rate 9 bpm w/ 500 psi. No mud losses while circ. Max BU gas 123 units. Hold pre cmt job safety mtg 10:00 - 13:30 3.50 CSGIN1 12 C P 2541 Pump 5 bbls water & pressure test lines to 4000 psi. Pump 50 bbls Alpha spsacer @ 10 ppg. Drop plug. Mix & pump lead slurry 334.6 bbls (453 sx.} Permafrost L cmt @ 10.7 ppg yield 4.15 tuft / sk (1880 cult) mix water 20.3 gal / sk Mix & pump tail slurry 46.3 bbls (225 sxs) Premium G Cmt @ 15.8 ppg yield 1.15 tuft /sk j 259 cult) mix water 5 gal / sk Drop top plug & displace w/ 10 bbls water & switch to rig pumps & continue disp w/ 229 bbls mud. Bump plug W! 1000 PSI Floats-field OK Cmt back @ surface. 13:30 - 17:00 3.50 CSGIN1 14 P Flush stack and surface equiptment. Rig down same. Lay down landing joint, and clean up floor. 17:00 - 0:00 7.00 CSGIN1 14 P Nipple down diveerter stack. Cement returns 100 bbl Type-L 10.7 ppg Nn accidents or spills reported 12/4/2006 0:00 - 11:00 11.00 CSGINI 14 P Nipple down diverter system 11:00 - 18:00 7.00 CSGIN1 14 P Nipple up and test multi bore wellhead to 5000 PSI for ten minutes. Nipple up 11 5/8" x 13 5!8"drilling spool, 24" drilling spool, 41" driNing pool and set stack, Clean pits and change shaker screens. 18:00 - 0:00 6.00 CSGIN1 14 P Change out 2" Oteco kill valve. Make up choke kill line and tighten all BOP bolts. No accidents, no spills reported. 12/5/2006 0:00 - 14:00 14.00 CSGSUR 14 P N/U BOPs and replace IBOP in top drive 14:00 - 0:00 10.00 CSGSUR 15 P RU test lines & fill stack. Tesedt 5" pipe rams (upper) 250 / 3000 psi Tested annular 250 / 300 psi Tested choke manifold, HCR & kill v/v to 250 ! 3000 psi Tested TIW & IBOP on top drive 250/ 3000 psi Tested h2s gas alarms & pit level alarms Jeff Jones (AOGCC) on location to witness all tests Cement returns - 100 bbl type-L 10.7 ppg No accidents or pollution reported 2/8/2007 1:08:30AM US ALASKA Operation Summary Report Well: OLIKTOK POINT I - 1 Project: NORTH SLOPE ~ Site. OLIKTOK POINT j Rig Name No: NABORS 245-E/245-E Event: DRILLING !.Start Date: 11/29/2006 End Date: 1/1/2007 Spud Date: 11!29/2006 Active Datum: KB @52.Oft (KELLY BUSHING) ! UWI: OLIKTOK POINT I - 1 Date Time Du anon Phase Code ', Subco Time MD From Operation Start-End (hrl '~, de2 Gode~ (1) p 12/6/2006 0:00 - 3:UU 3.00 CSGIN1 15 P Finished testing BOPs. 12/7!2006 12/8/2006 Tested Blind rams & Lower 3 1 /2 x 6" VBR 250 / 3000 psi LEL meth gas detectors on bell nipple failed to operate, replace & retested OK Accumulator drawdown test (1400 psi) failed due to leaking 4 way valve on Koomey for annular 3:00 - 5:00 2.00 CSGIN1 15 P R/D test equipment 5:00 - 9:00 4.00 CSGIN1 09 P Slip & cut 100' drilling line. service top drive, blocks 9:00 - 16:00 7.00 CSGIN1 06 D P C/o bails & elevators & RU to handle BHA. LD 8" BHA f/ derrick 16:00 - 0:00 8.00 CSGINI 08 A T Repair broken chain on lay down skate. Finished repairs @ 0000 hrs prepaing to PU 5" Dp Replaced annular 4 way valve on Koomey unit & replace bladders in 2 bottles on Koomey. @ 20:00 hrs Pressure Accumulator system back to 3200 psi & perform drawdown test. 1550 psi. Good test No accidents or pollution reported 0:00 - 8:00 8.00 CSGW1 06 D P PU 5" Drill pipe & rack back in derrick 8:00 - 8:30 0.50 CSGINI O8 A T Repair faulyt switch on Lay down Skate 8:30 - 11:30 3.00 CSGIN1 06 D P Continue PU 5" DP & rack back in derrick 11:30 - 12:00 0.50 CSGIN1 08 A T Repair short in wiring on Skate control panel 12:00 - 13:00 1.00 CSGINI 06 D P Finish PU 5" DP. Total 219 jts picked up in 12 hrs avg 18 jts / hr ) 13:00 - 22:00 9.00 CSGIN1 08 A T Remove bottom clamps on top drive and remove remove double pin sub. Rig had difficulty in breaking out sub due to being overtorqued. Replaced w/ correct length double pin sub & reinstall clamps, bails & elevators. 22:00 - 0:00 2.00 CSGIN1 06 D P PU 9 718" rock bit (MXL-1V j 7" Sperry ?/8 motor w/ 1.5 deg bend, 9 112" NM IBS, MWD tools Distances f/ bit: Direction 35.46' GR 44.17' EWR 51.63' PWD 59.88' ALD 81.89' Neutron 93.44' sonic 122.73' No accidents or pollution reported 0:00 - 2:00 2.00 CSGIN1 06 D P P/U motor & MWD tools 2:00 - 3:30 1.50 CSG1N1 06 D P Plug into & downlink to MWD tool 3:30 - 4:30 1.00 CSGIN1 06 D P M/U Batt tool and flex 4:30 - 5:00 0.50 CSGIN1 06 D P PJSM for Nukes & install same 5:00 - 6:00 1.00 CSGIN1 06 D P P/U Flex and RIH with HWDP 6:00 - 7:00 1.00 CSGIN1 06 D P PJSM -Rig safety mtg & PU ghost reamer 7:00 - g:00 2.00 CSGIN1 06 D P Singled in 42 jts of 5" DP. move 4 stds HWDP to other side derrick 9:00 11:00 2.00 CSGIN1 05 D P Shallow test MWD @2096' 11:00 - 13:00 2.00 CSGIN1 26 D P Tested csg to 2500 psi for 30 min. Had two surface leaks on chart recorder. Repair and retest csg to 2500 psi. Tested Ok. RD lines & blow down kill line 13:00 - 14:00 1.00 CSGIN1 27 D P Held Nabors safety meeting with rig crew and John Hanes and Tim Worhtington. 14:00 - 14:30 0.50 CSGIN1 06 D P TIH f/ 2096' Tag up float collar @ 2450' 2/8/2007 1:08:30AM 3 r~ US ALASKA Operation Summary Report Well: OLIKTOK POINT I - 1 Project. NORTH SLOPE Site: OLIKTOK POINT I Rig Name No: NABORS 245-E/245-E Event: DRILLING ;Start Date: 11/29/2006 End Date: - 1/1/2007 - Spud Date: 11/29/2006 Active Datum: KB @52.Oft (KELLY BUSHING) ~ UWI: OLIKTOK POINT I - 1 Date Time :Duration Phase Code Subcoi Time MD From Operation Start-End (ttr} deZ Code (ft) 14?0 I,;;yO I.00 CSGIN1 25 D P Drill oul float collar @ 2450' ~: 85' call to top of slice @ 2535' 15:30 - 17:00 1.50 CSGIN1 O8 A T Circ while repairing stroke counters on super choke 17:00 - 17:30 0.50 CSGINI 25 A P Drill out shoe @ 2541' & clean out rat hole to 2573' 17:30 - 18:00 0.50 CSGINI 02 A P Drill 20' new 9 7/8" hole f/ 2573' to 2593' 18:00 - 19:00 1.00 CSGINI 05 A P Circ BU & pull back 2 stds into shoe 19:00 - 19:30 0.50 CSGIN1 25 A P LOT w/ 9.3 ppg mud. TVD shoe 2072' Max pressure 475 psi w/ 3 bbis pumped EMW = 13.7 PP9 Sperry's max pressure /EMW = 13.63 ppg 19:30 - 0:00 4.50 CSGIN1 02 A P Drill 9 7/8" hole f/ 2593' to 2985' MD / 2258' TVD Rotating /sliding to build angle. Last survey: 2977' 62.44 Deg 76.4 Az Total 412' new hole made in 5 hrs avg 82.4' hr. WOB 22 K Inst ROP 60 -150 FPH RPM 60 + 165 Motor RPM TO on Btm 22 - 24 K TQ off Btm 20 - 22 K GPM 500 while sliding PP1700 psi Pres mud wt 9.5 ppg Avg ECD 9.9 ppg Avg BG 22 units Ball mill operational f/ 20:00 hrs No accidents or pollution reported 12/9/2006 0:00 - 12:30 12.50 DRLINI 02 A P 2985 Drilling /sliding 9 7/8" hole f/ 2985' to 3715' MD / 2469' TVD 730' new hole made in 12 1%2 hrs Avg 58.4' Hr Last survey 3677 78.52 deg 73_t6 Az WOB 22 K Inst ROP 150 FPH RPM 60 + 165 Motor RPM TQ on Btm 22 - 24 K TO `off Btm 20 22 K GPM 500 PP 1800 psi Pres mud ~~;t 9.5 ppg Avg ECD 9.9 ppg Avg BG 20 units Ball mill operated 12 hrs Mud pump one down. Mxing and pumping Hi Vis sweeps as needed. 12:30 - 13:30 1.00 DRLIN1 23 D T 3715 Sperry computers crashed. Unable to drill ahead without directional data. Circulate while troubleshooting problem. 13:30 - 15:00 1.50 DRLINI 23 D T 3715 POOH f13715' into shoe @ 2541' No hole problems 15:00 - 18:00 3.00 DRLIN1 23 D T 2541 Wait on & Replace Sperry computers. Nabors repairing stroke counters & Standpipe pressure guages. Unable to work on # 1 mud pump due to leaking mud pump isolation valve. Start valve Go. Sperry ready to pump up test survey to verify computers working @ 1800 hrs 18:00 - 0:00 6.00 DRLINI 08 D T 2541 Nabors continuing to Go 4" isolation valve on # 1 mud pump No accidents or pollution reported 12/10/2006 0:00 - 1:00 1.00 DRLIN1 08 A T 0 Finish repairing 4" isolation valve on # 1 mud pump & test same 1:00 - 2:30 1.50 DRLINI 23 D T 0 Test Sperry computer. Pump up survey f/ MWD. TIH f/ shoe to 3715'. No hole problems. No fill. 2/8/2007 1:08:30AM i tJS ALASKA Operation Summary Report Well: OLIKTOK POINT I _ 1 Project: NORTH SLOPE TSite: OLIKTOK POINT Rig Name No: NABORS 245-E/245-E f Event: DRILLING j Start Date: 11/29/2006 j End Date: 1/1/2007 j Spud Date: 11/29/2006 Active Datum: KB @52.Oft (KELLY BUSHING) ~~ UWI: OLIKTOK POINT I - 1 Date Time .Duration Phase Code ;Subco Time MD From Operation Start-End (hrl j del Code fftl ~~={~ - 9:30 7.00 DRLIN 1 02 n P 3775 Drilling 9 7/8" hole f/ 3775' to 4085' MD Sliding as needed to maintain 78 deg angle & Az. 9:30 - 10;30 1.00 DRLIN1 23 D T 4085 Circ while working on Sperry computer problem to restablish MWD 10.30 - 0.00 13.50 DRLINI 02 A P 4085 Drilling 9 7/8" hole f! 4085' to 5126' MD 12694' TVD 1411' new hole made in 20.5 hrs A.vg 69' hr Last survey 5091' 77.00 deg 71. t 1 Az WOB 22 K Inst ROP 130 FPH RPM 90 + 182 Motor RPM TO on Btm 22 - 24 K TO off Btm 20 - 22 K PU 160 K SO 100 K ROT 110 K GPM 575 PP 2000 psi Pres mud wt 9.5 ppg Avg ECD 10.1 ppg Avg BG 30 units Ball mill operated 21.5 hrs No accidents or pollution reported 12/11/2006 0:00 - 10:00 10.00 DRLINI 02 A P 5126 Drilling 9 7/8" hole f/ 5126' to 5981' MD 10:00 - 11:00 1.00 DRLINI 05 A P 5981 Circ BU 11:00 - 13:00 2.00 DRLIN1 06 B P 5981 Pull 10 std wiper trip f/ 5981' to 5021'. No hole problems. Trip back to bottom w/ no hole problems 13:00 - 0:00 11.00 DRLINI 02 A P 5981 Drilling 9 7/8" hole f/ 5981' to 6826' MD / 3180' TVD 1700' new hole made in 21 hrs Avg: ROP 81' hr Last survey 6897 73.15 deg 68.87 P,z WOB 22 K Inst ROP 130 FPH RPM 80 + 182 Motor RPM' TO orr Btm 25 -27 K TQ off Btm 22 - 25 K PU 160 K SO 100 K rOT 130 K GPM 575 PP 2000 psi Pres mud wt 9.7 ppg Avg ECD 10.17 ppg Avg BG 15 units Ball mill operated 22 hrs No accidents or pollution reported 12/12/2006 0:00 - 4:00 4.00 DRLINI 02 A P 6826 Drilling 9 7/8" hole f/ 6826' to 7014' MD / 3239' TVD 188' new hole made in 4 hrs Avg 47' hr Last survey 6977' 71.21 deg 59.85 Az WOB 25 K Inst ROP 80 FPH RPM 80 + 182 Motor RPM TQ on Btm 25 -27 K TQ off Btm 22 - 25 K PU 160 K SO 100 K ROT 130 K GPM 575 PP 2100 psi Pres mud wt 9.7 ppg Avg ECD 10.33 ppg Avg BG 15 units Ball mill operated 6 hrs 4:00 - 6:00 2.00 DRLIN1 05 A P Pump hi-vis sweep & circ BU. Slight increase in cuttings observed @ shakes on BU 6:00 - 13:00 7.00 DRLIN1 06 A P POOH for bit & test BOP,s. Pull 10 stds wet. 40 max drag w/ hole taking proper fill. Pump slug & continue POOH to BHA 13:00 - 16:30 3.50 DRLIN1 06 A P PuII BHA to MWD Took 2 hrs to recover lost stand HWDP across derrick 16:30 - 20:30 4.00 DRLIN1 06 A P Hold prejob safety mtg & recover nukes. Download memory f/ Sperry tools 2/8/2007 1:08:30AM • US ALASKA Operation Summary Report Well: OLIKTOK POINT I 1 __-__~ Project: NORTH SLOPE __ Site: OLIKTOK POINT ?Rig Name No: NABORS 245-E/245 E Event: DRILLING (Start Date: 11/29/2006 ~ End Date: 1/1/2007 ;Spud Date: 11/29/2006 Active Datum: KB @52.Oft (KEL LY BUSHING) j UWI: OLIKTOK POINT I - 1 Date Time Duration Phase ;Code 'Subco Time MD From i Operation Start-End (hrj del Code (ft) _>O. ;U ~ 1:;;0 1.OC DRLi^J1 Cu ~ LD motor u' Lit. Bit4-5 WT-A-E-1/flout-ER-bit hrs 21:30 - 23:00 1.50 DRLIN1 15 P Pull Vetco Wear bushing. No abnormal wear. Run Vetco test plug. Fill stack w/water & Gose Blind rams 23:00 - 0:00 1.00 DRLIN1 15 P Install 3 accumulator bottle w! new bladders & charge same Start Testing BOP's No accidents or pollution reported 12/13/2006 .0:00 - 8:30 8.50 DRLINI 15 P 0 Test BOP's Tested Upper 5" pipe rams, Lower 3 1!2 x 6" VBR, Blind rams & Annular to 250/ 3000: psi for 5 / 5 min Tested all 16 valves on choke manifold, HCR & Kill valves 250 / 3000 psi for 5 ! 5 min Tested TIW, Grey & Top Drive (BOP to 250 / 3000 psi for 5 / 5 min Perform accumulator draw down test. System 3200 psi. After closure 1600 psi Lou Grimaldi gave permission to start BOP test without AOGCC agent present @ 1800 hrs 12111/06 All tests charted 8:30. - 10:30 2.00 DRLIN1 15 P 0 Lay down test jt. Removed test plug. Installed Vetco wear ring. Blow down choke & kill lines 10:30 - 11:00 0.50 DRLIN1 08 A T 0 Repair skate 11:00 - 12:30 1.50 DRLINI 06 D P LD Sperry MWD tools due to low battery life 12:30 - 16:30 4.00 DRLINI 06 D P 0 PU new 9 7/8" bit (MX-1 ), new motor w/ t5 deg bend, & MWD tools. 16:30 - 19:30 3.00 DRLIN1 06 D P 150 Download to Sperry MWD & sonic. Hold prejob safety mtg & load Nukes 19:30 - 21:30 2.00 DRLIN1 06 D P 150 .Continue TIH to below shoe @ 2550' 21:30 - 22:00 0.50 DRLIN1 05 A P 2550 Shallow test MWD & circ 15 min. Blow down top drive. 22:00 - 0:00 2.00 DRLIN1 06 D P 2550 Continue TIH. Took 50 k @ 371Twash thru. Took 50 k @ 4450' washed thni No accidents reported. 1 spill reported. of less than 1 gal. WBM. 100%rCGOVBiy 12/14/2006 0:00 - 2:00 2.00 DRLIN1 06 A P 4800 Continue TIH w/ 9 7!8" bit & motor Assy f/ 4800' to 6350' Took 50 k down @ 5600' Washed thru 2:00 - 4:30 2.50 DRLINI 03 A P 6350 Wash & ream undergauge hole f! 6350' to bottom @ 7014' Work thru hard spot @ 6820' Stalled motor 4:30 - 0:00 19.50 DRLINI 02 A P 7014 Drilling /sliding 9 7/8" hole f/ 7014' to 8200' MD / 3643' TVD 1186' new hole made in 19.5 hrs. Avg ROP 61' hr Last survey 8112' 72.09 deg 27.12 Az WOB 20 K Inst ROP 100 FPH RPM 90 + 175 Motor RPM TQ on Btm 25 -27 K TO off Btm 22 - 25 K PU 210 K SO 105 K ROT 140 K GPM 600 PP 2700 psi Pres mud wt 9.6 ppg Avg ECD 10.34 ppg Avg BG 30 units Max BG 158 units Ball mill operated 19.5 hrs No accidents or pollution reported 12/15!2006 0:00 - 15:00 15.00 DRLIN1 02 A P 8200 Drilling /sliding 9/7/8" hole f/ 8200' to 8839' 2/8/2007 1:08:30AM US ALASKA Operation Summary Report Well: OLIKTOK POINT I - 1 Project. NORTH SLOPE jSite: OLIKTOK POINT Event: DRILLING Start aD te: 11/29/2006 End Date: 1!1/2007 Active Datum: KB @52.Oft (KELLY BUSHING) ~~ UWI: OLIKTOK POINT I - 1 Date Time Duration Phase Code Subco Time MD From Start-End (hr) del Code (ft) 15:00 15.:10 0.50 DRLW 1 23 D T 8839 15:30 - 18:00 2.50 DRLINI 02 A P 8839 18:00 - 22:00 4.00 DRLIN1 05 A P 22:00 - 0:00 2.00 DRLIN1 06 B P 8890 8990 12/16/2006 0:00 - 1:00 1.00 DRLINI 06 B P 7000 1:00 - 3:30 2.50 DRLIN1 05 A P 8990 3:30 - 11:30 8.00 DRLINI 06 H P 8990 11:30 - 15:30 4.00 DRLIN1 09 P 2541 15:30 - 17:00 1.50 DRLIN1 06 B P 2541 17:00 - 17:30 0.50 DRLIN1 06 B P 5560 17:30 - 20:00 2.50 DRLIN1 06 B P 5560 20:00 - 23:30 3.50 DRLIN1 05 A P 8990 23:30 - 0:00 0.50 DRLINI 06 H P 8990 12/17/2006 0:00 - 8:00 8.00 DRLIN1 06 H P 8660 8:00 - 10:30 2.50 DRLIN1 06 H P 250 10:30 - 11:30 1.00 DRLIN1 06 H P 250 11:30 - 13:00 1.50 DRLINI 39 G P 0 13:00 - 17:30 4.50 DRLIN1 08 A T 70 17:30 - 19:30 2.00 DRLINI 39 G P 131 -- - - - - - Rig Name No: NABORS 245-E/245-E Spud Date: 11/29/2006 j Operation Sperry computers dow~~. Reboot & troubleshoot problem Drilling /sliding 9 7/8" hole f/ 8839' to 8990' TD MD / 3912' TVD 790' new hole made in 17.5 hrs Avg Rop 45.1' hr Daily sliding 4.03 hrs Total section sliding 11.25 hrs Daily rotating 8.10 hrs Total section rotating 14.3 hrs Last survey 8952' 70.22 deg 7.73 Az WOB 20 K Inst ROP 100 FPH RPM 90 + 175 Motor RPM TO on Btm 25 -27 K TO off Btm 22 - 25 K PU 210 K SO 105 K ROT 140 K GPM 600 PP 2900 psi Pres mud wt 9.6 ppg Avg ECD 10.34 ppg Avg BG 30 units Max BG 158 units Ball mill operated 21 hrs Pump 30 bbls hi-vis weighted 2 ppg over sweep & circulate 3 x BU 10% increase in cuttings Senn @ shakers f/ sweep Pump slug & POOH to 7000' . Hole in good condition. Max o'pull 30 k Hole took proper fill No accidents or pollution reported TIH f/ 7000' back to bottom @ 8990'. No hole problems. No fill Circ. 3 x BU 600 gpm 2900 psi Mud wt 9.6 ppg POOH to shoe @ 2541' SLM pipe out. Worked thru tight spot @ 6020 bit depth / 5200' ghost reamer depth Slip & cut 100' drill line & service rig. Repair & function COM Trip back in hole to 5560' No hole problems Fill pipe & break circ. Work on pipe slips & iron roughneck Continue TIH to bottom @8990' No hole problems & no fill Circ 3X BU 100 rpm (max on motor) 650 gpm max on MWD tool ) 3200 psi Pres mud wt 9.7 ppg Dollar size pieces of coal & increase in amt. of cuttings (more than while drilling or previously circulations) @ shakers on first circulation. Pump slug & blow down top drive. POOH No accidents or pollution reported Continue POOH f/ 8660' 250' No hole problems. Hole took proper fill Hold prejob safety mtg & remove nukes & down link MWD memory data. Stand back MWD tools & LD motor & bit. Bit 1 -1 -WT -A- E-1/16 -ER-TD Clear rig floor & hold prejobsafety mtg. Start PU Baker Atlas RCI tools Repair top drive & do saver sub Continue PU Baker Atlas RCl tools & test same. Total length tools 131.08' Max OD on packer 6.25" 2/8/2007 1:08:30AM 7 US ALASKA operation Summary Report Well: OLIKTOK POINT I - 1 Project: NORTH SLOPE Site: OLIKTOK POINT Event: DRILLING ~i,Start Date: 11/29/2006 End Date: 1/1/2007 - __ r _.__ .- ----- . Active Datum: KB @52.Oft (KELLY BUSHING) j UWI: OLIKTOK POINT I - 1 Date Time .Duration Phase Code 'Subco Time MD From Start-End (hr) del Code (ft} 19:30 - 22:30 3.OC DRLINI 06 C P 131 22:30 - 0:00 1.50 DRLIN1 39 G P 2451 12/18/2006 0:00 - 1:30 1.50 DRLINI 39 G P 2541 1:30 - 2:30 1.00 DRLIN1 08 A T 2541 2:30 - 6:00 3.50 DRLlN1 06 C P 2541 6:00 - 10:30 4.50 DRLIN1 39 G P 8274 10:30 - 14:30 4.00 DRLINI 39 G T 8274 14:30 - 15:00 0.50 DRLIN1 06 C T 8274 15:00 - 21:00 6.00 DRLINI 06 C T 8785 21:00 - 22:00 1.00 DRLINI 06 C T 131 22:00 - 0:00 2.00 DRLIN1 39 G T 131 - 12/19/2006 0:00 - 1:00 1.00 DRLIN1 39 G T 131 1:00 - 8:00 7.00 DRLINI 06 C T 131 8:00 - 10:00 2.00 DRLINI 39 G T 8279 10:00 - 11:30 1.50 DRLINI 06 C P 8279 11:30 - 0:00 12.50 DRLINI 39 G P 8786 12!20/2006 0:00 - 6:00 6.00 EVAL 39 G P 8786 6:00 - 8:00 2.00 EVAL 39 G T 8786 8:00 11:60 3.00 DRLINI 39 G P 8786 11:00 - 17:00 6.00 DRLINI 39 G P 17:00 - 19:00 2.00 DRLIN1 39 G P 19:00 - 21:00 2.00 DRLINI 06 C P 21:00 - 0:00 3.00 DRLINI 15 P 12/21/2006 0:00 - 6:00 6.00 OTHER 15 P 0 6:00 - 11:00 5.00 EVAL 39 G P 0 11:00 - 15:00 4.00 EVAL 39 G P 750 Spud Date: 11/29/2006 Operation MU YO :x TIH w1 6 sYds 5" . WDP, ::0, 7 ~,4" jars ( 2 3/4" ID ), 5" DP to shoe. Running @ 4 min /std. Break circulation & Blow down top drive.. Hang Baker wireline sheave in derrick No accidents. 1 Spill reported RU Baker Atlas sheave in derrick Repair leaking hydraulic lines on iron roughneck TIH w/ DP conveyed RCI tools f! 2541' to 8274' MU Baker side entry sub & RIH w/wireline wet connect. Unable to connect to RCI tools. Pooh wireline & inspect wet connect tool. No damage found. RIH' w/wireline & make second attemp to latch without success. POOH wireline & RD. TIH to 8785' to ensure hole in good condition. POOH to inspect RCI tools Break down xo & wet connect on RCI tool. Found 1" brass valve wedged in top of wet connect tool. Brass valve was from hydraulic oil tank on top drive that was damaged while picking up Baker RCt tools. Redress tools & MU & attempt to test wet connect. Troublehrot problem. C/O 2 tools & retest No accidents or pollution reported Continue to troublshoot RCI & retest C surface. TIH w/ Baker RCI tools on 5" DP t/8279' MD Rig Up Side Entry Tool & RIH w/wireline & latch wet connect TIH 5" DP F/ 8279' to 8786' correlate depth w/ GR Set Baker Atlas packers 8786' to 8779'. Start pumping to Gean up prior to taking samples Rig circulating @ 2 bpm for 5 min every 1/2 hr No accidents or pollution reported Continued pumping RCI tool. Pumped total of 180 liters of fluid in 18 hours. Lost communication due to downhole failure. Attempts to reconnect to tool unsuccessful. Tried to POOH to side entry sub to unlatch wireline. Pipe would not move initially. Continued to work pipe until free. Circulated hole clean. POOH to side entry sub. Unlatched wireline and POOH to surface. Preparing to POOH with pipe. and RCI tool. POOH DP and RCI tool to surface. State Representative Jeff Jones called @1410 waiving witness of BOP tests. LD Sample tools LD MWD Tools Test BOP PJSM. R/U for BOP Tests. Tested Annular 250-3000 psi, Rams 250-5000, Valves 250-5000. R/D test equipment, set wear ring, R/U to blow down all surface equipment. PJSM. PU New MWD Tools & MU BHA RIH to Shoe, 2541' MD Rig Name No: NABORS 245-E/245-E 2/8/2007 1:08:30AM 8 US ALASKA Operation Summary Report Well: OLIKTOK POINT I - 1 _~_~_- Project: NORTH SLOPE - - -- -- -- j Site: OLIKTOK POINT Event: DRILLING ,Start Date: 11/29/2006 End Date: 1/1/2007 Active Datum: KB @52.Oft (KELLY BUSHING) , UWI: OLIKTOK POINT I - 1 Date Time Duration ' Phase Code Subco l Time MD From Start-End (hr) del ' Code (ft) 75:00 17:00 2.00 EVAL .,., G P 2541 17:00 - 22:30 5.50 EVAL 39 G P 2541 22:30 - 0:00 1.50 EVAL 39 G P 12/22/2006 0:00 - 2:00 2.00 EVAL 48 P 2:00 - 14:30 12.50 EVAL 26 P 8990 8990 8990 14:30 - 19:00 4.50 EVAL 06 C P 7230 19:00 - 20:30 1.50 OTHER 07 P 2541 20:30 - 22:30 2.00 EVAL 06 D P 2541 22:30 - 22:45 0.25 OTHER 27 A P 750 22:45 - 0`.00 1.25 EVAL 06 D P 750 12/23/2006 0:00 - 1:30 1.50 EVAL 06 D P 0 1:30 - 2:30 1.00 EVAL 06 D P 0 2:30 - 3:30 1.00 OTHER 08 A U 0 3:30 - 4:30 1.00 OTHER 08 A U 0 4:30 - 5:30 1.00 EVAL 06 D P 0 5:30 - 8:30 3.00 EVAL 06 D P 0 8:30 - 18:00 9.50 EVAL 06 D P 0 18:00 - 20:00 2.00 EVAL 39 G T 8275 20:00 - 21:00 1.00 EVAL 39 G T 8275 21:00 - 22:00 1.00 EVAL 39 G T 8275 22:00 - 23:00 1.00 EVAL 39 G T 8275 23:00 - 0:00 1.00 EVAL 39 G T 8275 12/24/2006 0:00 - 3:00 3.00 EVAL 06 I T 8275 3:00 - 4:00 1.00 EVAL OS A T 2409 4:00 - 5:30 1.50 EVAL 06 I T 2409 5:30 - 6:30 1.00 EVAL 06 1 T 0 6:30 - 7:30 1.00 EVAL 06 I T 0 Rig Name No: NABORS 245-E/245-E Spud Date: 11/29/2006 Operation SPp and ca, 100' dell line a xJ scrdi;, '.g. Cheek Crown-o-Matic PJSM. RIH, Reamed as necessary to TD, circulated and washed .tight spots at 5725' and 8387' MD. Pumped hi vis sweep: Circ last 4 stds to TD. CBU X 3. SPP 1900, RPM 100, SPM 114, Mud 9.7 ppg No accidents, no reported spiAs, no incidents CBU, Pump Sweep, CBU. @ 100 SPM, 10 bbls/min, max gas 37 units, mud 9.7 ppg MAD Pass @ 40 RPM, Speed 185'/hr. From 8940' to 8660' = 280' - 0200 to 0400 From 8570' to 8060' = 510' -0440 to 0900 From 7690' to 7230' = 460' - 1045 to 1430 40 RPM, 185 GPM PU - 230K ROT - 155K SO - 120K POOH 7230' to shoe at 2541' MD PJSM, Service top drive POOH. L/D single jt. POOH to Flex DC. UD same. Found rabbit top of flex DC jt. PJSM for Nukes POOH and remove Nukes. No Accidents, no reported polution Download MWD UD MWD Pull wear ring and set test plug lest 2-1/16" 10K isolation valve on choke manifold, 250 low - 5000 hi for 5 mins. R/D test equipment and blown down. Pull test plug and set wear ring R/U Baker wireline tools RIH w/ RCI tools to 8275' MD RIH w/ Wireline. Latch onto wet connect. Line 2 is open. Powered up all tool modules - Communicationswas OK. When applying high voltage for hydraulic pump high current was observed. Meter checks showed a short circuit on line 3 and an open circuit on line 2 POOH w/ Wireline to change out latch tools. Pulled wet connect and found shorted line 3 in latch assembly, changed out same. RIH w/wireline and attempted to latch three times. Same line 2 open. POOH w/wireline. Lay down same. Pump slug, POOH w! DP to find short in wet connect. Monitor well, Pump dry job, POOH f/8275' t/2409' MD Monitor well, adjust elevators POOH to surface LD Baker tools MU Baker tools 2/8/2007 1:08:30AM 9 US ALASKA Operation Summary Report Well: OLIKTOK POINT I - 1 -- __ _-- Project: NORTH SLOPE - Site: OLIKTOK POINT ~ Rig Name No: NABORS 245-E/245-E Event: DRILLING Start Date: 11/29/2006 i End Date: 1/1/2007 ,.Spud Date: 11/29/2006 Active Datum: KB @52.Oft (KELLY BUSHING) j UWI: OLIKTOK POINT I - 1 Date Time ~ Duration ' Phase Code Subco Time MD From Operation Start-End (hr) I del Code (ft) ~~~ ;3:00 5.5C EVF;L 06 I T 0 fL'i 13:00 - 14:00 1.00 EVAL 39 I T MU Side entry wireline sub, RIH w/wireline, latched onto tool 14:00 - 16:00 2.00 EVAL 06 I T RIH w/DP to 8785' MD 16:00 - 17:00 1.00 EVAL 39 I T LAMA test, no communications 17:00 - 18:00 1.00 EVAL 06 I T POOH w/wireline to side entry sub 18:00 - 20:30 2.50 EVAL 06 I T POOH w/wireline. Rehead fatch tool 20:30 - 21:00 0.50 EVAL 06 I T RIH w/wireline. Latch onto wet connect. Tool is working. 21:00 - 22:00 1.00 EVAL 06 I T RIH vv/DP to 8785' MD 22:00 - 23:30 1.50 EVAL 06 I T Inflate packer w/50 liters, 1060 psi 23:30 - 0:00 0.50 EVAL 06 I T Pumping out fluid between isolation packers 12/25/2006 0:00 - 9:00 9.00 EVAL 39 G P 8789 Baker test well, packer set @ 8789' MD. Pumping filtrates. Monitored losses. 9:00 - 9:30 0.50 EVAL 39 G T 8789 Lost packer seal from power brown-out 9:30 - 11:00 1.50 EVAL 39 G T 8789 Reset packer. 11:00 - 16:00 5.00 EVAL 39 G P 8789 Pumped filtrates and took samples. 16:00 - 19:30 3.50 EVAL 39 G P 8789 Released pressure on straddle packer. POOH and took downhole pressure test at 8785', 8772', 8743', 8721', 8712', 8697'. 19:30 - 20:00 0.50 EVAL 39 G P 8697 POOH w/DP to 8275' MD. 20:00 - 20:30 0.50 EVAL 39 G P 8275 LD wireline side door entry sub. 20:30 - 23:00 2.50 EVAL 39 G P 8275 Mix and pump pill. POOH w/DP and RCI tools to 2487' MD. BOP Drill. 23:00 - 0:00 1.00 EVAL 39 G P 2487 POOH w/RCI tools. 12/26!2006 0:00 - 1:00 1.00 EVAL 39 G P 698 PJSM, L/D BHA 1:00 - 3:30 2.50 EVAL 39 G P 0 L/D Baker tools and retrieve samples 3:30 - 4:00 0.50 INT1 26 P 0 Clear Floor 4:00 - 6:30 2.50 INT1 06 B P 0 P/U BHA 6:30 - 7:30 1.00 INT1 06 B P 0 RIHao 2409' MD 7:30 - 10:30 3.00 INT1 26 P 2409 Slip & Cut 100' of Drill Line 10:30 - 15:30 5.00 INT1 06 B P 2409 RIH to TD. 15:30 - 18:00 2.50 INT1 05 B P 8990 CBU x 2 18:00 - 23:00 5.00 INT1 06 B P 8990 Mixed & pumped pill, POOH 23:00 - 23:30 0.50 INT1 06 B P 0 L/D BHA 23:30 - 0:00 0.50 INT1 06 B P 0 R/U to P/U 3-1l2"tbg. No spills, no accidents 12/27/2006 0:00 - 1:30 1.50 INT1 01 P 0 R/U for 3-1 /2" tbg 1:30 - 7:30 6.00 INT1 01 P 0 PJSM. P/U 63 jts 3-112" tbg & stand back in derrick 7:30 - 12:00 4.50 INT1 06 D P 0 PJSM. R/U &RIH 30 jts 2-7/8" tbg. 12:00 - 14:30 2.50 INT1 06 D P 900 L/D 8 jts 2-7/8" tbg 14:30 - 16:30 2.00 INT1 06 D P 900 M/U 2-7/8" XO to 5" DP, RIH to shoe w/DP. Break circ. 16:30 - 19:30 3.00 INT1 06 D P 2541 Continue RIH with DP to 8990' MD. 19:30 - 20:30 1.00 INT1 48 P 8990 CBU @ 8 bpm, 900 psi 20:30 - 21:30 1.00 INT1 48 P 8990 PJSM w/Howco while CBU. 21:30 - 22:30 1.00 INT1 17 P 8990 Howco pump 5 bbl H2O, close valve, test lines to 2500 psi, grease zurk on valve leaked, replaced zurk and retested to 2500 psi, OK. Mixed and pumped 301 sks premium cmt, 61.7 bbls at 15.8 ppg, followed by 4 bbls H2O, displaced to 8140' with rig pumps 138 bbls, 1380 stks. 2/8/2007 1:08:30AM 10 US ALASKA Operation Summary Report Well: OLIKTOK POINT I _ 1 Project NORTH SLOPE Site: OLIKTOK POINT Rig Name No: NABORS 245 E/245 E Event DRILLING Start Date: 11/29/2006 End Date: 1/1/2007 _. Spud Date: 11/29!2006 Active Datum: KB @52.Oft (KELLY BUSHING) UWI: OLIKTOK POINT I - 1 Date Tlme Duration I Phase Code Subco Time MD From ~ Operation Start-End (hr) del Code (ft} ~0 C:UC 1.5C ICJ T 1 ~„ F 2:iSu P001. 6 stds D°. Dropped tcan~ ball. CEU. 12/28/2006 0:00 - 1:30 1.50 INT1 48 P Change out head pin. Continue CBU @ 8400', 1100 psi 1:30 - 3:00 1.50 INT1 17 P Test lines to 2500 psi. Plug # 2 - w/tail @ 8400', pumped 20 bbl H2O, 63 bbl of 15.8# G cement, 4 bbl 3:00 - 5:00 2.00 5:00 - 6:30 1.50 6:30 - g:00 2.50 9:00 - 12:30 3.50 12:30 - 14:30 2.00 14:30 - 15:30 1.00 15:30 - 17:00 1.5C 17:00 - 23:00 6.00 23:00 - 0:00 1.00 12/29/2006 0:00 - 1:00 1.00 1:00 - 6:00 5.00 6:00 - 7:30 1.50 7:30 - 12:00 4.50 12:00 - 14:30 2.50 14:30 - 17:00 2.50 17:00 - 17:30 0.50 17:30 - 18:30 1.00 18:30 - 19:30 1.00 19:30 - 20:00 0.50 20:00 - 21:00 1.00 21:00 - 23:30 2.50 23:30 - 0:00 0.50 12/30/2006 0:00 - 3:00 3.00 3:00 - 4:30 1.50 4:30 - 5:00 0.50 5:00 - 7:00 2.00 H2O behind -Disp w/128 bbl mud. POH to 7800°. Pumped foam D. P. wiper ball. Had about 10 bbl cement return.. Pull 6 stands. INT1 48 P CBU @ 7800' INT1 17 P Plug # 3 - w/tail @ 7800', pumped 20 bbl H2O, 63 bbl of 15.8# G cement, 4 bbl H2O. - Disp w/120 bbl mud. POH to 7000'. -Pumped foam wiper ball and CBU. Had about 3 bbl cement returns. C.LP. (g? 0530 INT1 48 P Break out head pin, CBU 5500 stk. INT1 06 D P POH 88 stds 5" DP. R/U to P/U 2-7/8" tbg. PJSM. INT1 06 D P POH w/2-718" tbg standing back. R/D 2-7/8" tbg equipment INT1 15 P Pull wear ring. Drain down stack, install test plug. INT1 15 P R/U to test BOP. Fill stack INT1 15 P Test BOPS. 5000 psi high, 250 psi low. Had valve #4 leak grease, regressed and retested same, OK. Had Blind Ram door leak, tightened door. retested OK. INT1 15 P Rig Down test equipment. No accidents. The broken head pin and cement line caused an undetermined amount of WBM to spray on the inside of the rig wind walls and drill floor. Clean up complete and immediate. INT1 07 P 0 Adjust Drawworks Brakes INT1 06 D P 0 M/U 9-718" bit. RIH to shoe & break circulation. Blow down top drive. Continue in hole and tagged hard cement @ 7262' w/20K lbs. Witnessed by AOGCC rep. "" INT1 06 D P 7262 Break circulation. CBU 5400 stk. Pump slug, Blow down top drive INT1 06 D P 7262 POH f/7262' to surface. INT1 06 D P 0 Clean floor, R/U &RIH w/2-7/8" tbg. INT1 06 D P 552 RIH w/5" DP to 3141' INT1 33 A P 3141 PJSM w/Howco, Pump Hi Vis Pill, 18 bbls. 9.9 ppg, 120 + vis INT1 17 P 3141 POH to 3041', pump 20 bbls H2O, mix & pump 302 sks premium, 61.9 bbls @ 15.8 ppg, followed by 5 bbls H2O. Displaced w/rig pump @ 35 bbls, 350 stks, 8 bpm, 750 psi. INT1 06 B P 3041 POH to 2341' INT1 48 P 2341 CBU 8 bpm. 750 psi, 2200 stks. INT1 06 D P 2341 POH w/ 5" DP INT1 06 D P 1789 R/U to POH w/2-7/8" tbg, L/D same. INT1 06 D P 0 M/U 9-7/8" bit and csg scraper. RIH. No accidents, no reported polution. INT1 06 A P 0 RIH wl9-7/8" bit and csg scraper to 2344'. Made up top drive, circ and rot to 2449'. INT1 06 A P 2449 Blow down top drive. POH (26 stands) for 10-3/4" EZSV. INT1 07 P 0 Clean rig floor and service top drive. INT1 06 A P 0 M/U EZSV & RIH w/same. Set EZSV packer @ 2441' 2/8/2007 1:08:30AM 11 US ALASKA .Operation Summary Report Well: OLIKTOK POINT I - 1 Pro ect: NORTH SLOPE I Site: OLIKTOK POINT ~ Rig Name No: NABORS 245-E/245-E -- Event: DRILLING iStart Date: 11/29/2006. ~ End Date. 1!1/2007 TSpud Date: 11/29/2006 Active Datum: KB @52.Oft (KELLY BUSHING) ~ UWI: OLIKTOK POINT I - 1 Date Time 'Duration Phase Code Subco; Time MD From Operation Start-End (hr) del ' Code (ft} _ 7:00 - 9:00 2.00 INT1 17 P 244 i Safety meeting w/Howco. M/U head pin with hose. 9:00 - 10:00 1.00 INT1 48 P 2260 10:00 - 11:00 1.00 INT1 26 P 2260 11:00 - 13:30 2.50 INT1 06 D P 2260 13:30 15:30 2.00 INT1 06 D P 2260 15:30 - 18:30 3.00 INT1 06 D P 0 18:30 - 20:30 2.00 INT1 26 P 0 20:30 - 23:30 3.00 INT1 06 D P 0 23:30 - 0:00 0.50 INT1 06 D P 2032 12/31/2006 0:00 - 1:30 1.50 POST 01 P 0 1:30 - 10:30 9.00 POST 01 P 0 10:30 - 1'1:00 0.50 POST 01 P 0 11:00 - 12:30 1.50 OTHER 27 A P 0 1230 - 19:00 6.50 POST 01 P 0 19:00 - 20:00 1.00 POST 14 P 0 20:00 - 21:00 1.00 POST 14 P 0 21:00 - 22:30 1.50 POST 14 P 0 22:30 - 0:00 1.50 POST 14 P 0 1/1/2007 0:00 - 1:00 1.00 POST 14 P 0 1:00 - 2:00 1.00 POST 14 P 0 Pumped 20 bbl H2O, 5 bbl of 15.8 ppg type G Cement followed by 5 bbl H2O. Displaced w/35 bbl mud. Pulled 2 stds to 2260' and dropped wiper ball. AOGCC rep Chuck Scheve waived cement plug test, witnessed by Gary Goerlich. CBU R/U to test casing -Tested casing @ 1500 psi for 15 minutes. Pump dry job, R/U to UD 5" DP POH Layiny Down 51 jts 5" DP and Howco running tool. UD 42 jts 5" DP out of derrick, moved HWDP to drillers side of derrick Clean rig floor, pull wear ring R/U & RIH w/ 1,992' of 3-1/2" tbg. M/U tbg hanger No accidents. no reported polution Land tbg. Lock down hanger & test to 5,000 psi. OK. Clean rig floor, start washing down BOP stack prior to Nipple Down. ** At 06:00 approximately 20 gals of water and WBM leaked into the cellar and onto and under herculite containment while washing down the BOP stack. Cleanup was complete and immediate. All necessary personnel and agencies were notified in a timely manner. ** Nipple Down BOP HSE Meeting. Continue nipple down BOP. ** At 16:00 an additional 10 gallons of WBM melted off the BOP stack and leaked onto and under herculite containment. Cleanup was again complete and immediate and all necessay personnel and" agencies were notified. `* Clean top of wellhead Set tree and tighten bolts R/U and Tested wellhead pressure, Lo 500, Hi 5000 psi Testers tree pressure, Lo 500, Hi 5000 psi. PJSM RIU to freeze protect with 186 bbls diesel. No accidents and two reportablespills. Attempted to pump diesel for freeze protect. Pop off on pump #1 was open, pumped 20 bbls diesel into pit #5. Shut down pump and reset pop off. Continued to pump. Shut down pump. ** Had 4" valve on cement stand pipe open and put +/ - 10 gallons diesel fuel on rig floor. Clean up complete and immediate and necessary personnel and agencies notified in a timely manner. ** Clean floor of diesel w/absorbent. Called ACS &HSE to rig floor. 2/8/2007 1:08:30AM 12 • Memo To: Tom Maunder --- ..9 AOGCC, Anchorage, AK From: Walter Quay, Mike Stockinger Date: January 5, 2007 Re: Weekly Update for KMG/Anadarko Oliktok Point Project - Oliktok Point I-1 Confidential December 29, 2006 TIH to tag cement plug #3 with bit @ 7262'MD. POOH, PU 2-7/8" cementing stinger. TIH, set plug #4 into surface casing shoe. POOH & LD 2-7/8" pipe. PU 9-7/8" bit & scraper. TIH. (' December 30, 2006 Set EZSV packer & pumped cement on top of plug. Test casing to 1500 psi. 4 %~'~~ Run Kill String. December 31, 2006 Land tubing hanger and test same to 5000 psi. Wash BOP stack prior to ND BOP. ND, NU & pressure test. January 1, 2007 Freeze Protect OP I-1. Released Rig. Prepare to move. Rig Maintainence January 2, 2007 RD & move rig. Spotted over conductor on Oliktok Point I-2 January 3, 2007 Worked to thaw pipes, hoses & equipment. `~ January 4, 2007 Continue to thaw out rig & make repairs to shaker & centrifuge. NU diverter & test same. Make several attempts to fish lost hammer head while continuing to ~ i thaw out pumps & top drive IBOP. Break circ & wash down to 115' & POOH with 4~~'~~ "t~ fish. January 5, 2007 LD fishing tools. PU 13-1/2" bit & motor. Repair top drive & thaw out mud pump cooling system & reprime pumps. Drill/slide 13-1/2" hole from 115' to 218'. POOH MU MWD tools & BHA. Drill/slide from 218' to 395' 1 -1 - ,,,• To: Tom Maunder AOGCC, Anchorage, AK From: Walter Quay, Mike Stockinger Date: December 29, 2006 • Re: Weekly Update for KMG/Anadarko Oliktok Point Project - Oliktok Point I-1 Confidential December 22, 2006 CBU X 2. MAD pass with LWD. POOH. Download LWD. December 23, 2006 Complete Download of LWD. Replace valve on choke manifold & test. RU Baker Atlas WL TCI tools on DP. RIH. TIH with DP to 8275' MD. RIH with WL.. WL electrical problem. POOH with WL & rerun. Problem was on DP conveyed tools. POOH with DP. December 24, 2006 POOH with DP conveyed tools. Change out Baker Atlas RCI tools. TIH with DP to 8300' MD. RIH & Latch WL. TIH with DP to 8785'. WL electrical problem. POOH to side entry sub. POOH with WL. Re-head latch tool. TIH with WL & Latch. TIH with DP to 8785'. Inflate Packers. Start pumping out fluid between packers. December 25, 2006 Pumping filtrate from zone. Lost electrical power briefly causing packers to lose seal. Reset packer and restart test. Take Samples. Relase packers & take 6 pressures. POOH with DP to 8275'. Unlatch and POOH with WL. POOH with DP. December 26, 2006 LD Baker WL tools and retrieve samples. PH BHA &TIH to TD. CBU X 2. POH. PU 3-1/2" tbg for suspension kill string. December 27, 2006 PU 2-7/8" tubing for cementing stinger. RIH with cementing string to TD. Mix & pump 61.7 Bbls(301 sx) of 15.8 ppg cement from 8990' to 8400' MD. POOH to 8400'MD. CBU December 28, 2006 Mix & pump 63 Bbls(307 sx) of 15.8 ppg cement from 8400' MD to 7800' MD. POOH to 7800'. CBU. Mix & pump 63 Bbls(307 sx) of 15.8 ppg cement from 7800' to 7200' MD. POOH to 7000' MD. CBU. ~ 3 bbls cement observed in returns. POOH with cementing string. Test BOPs. December 29, 2006 TIH to tag cement plug #3 with bit @ 7262'MD. POOH, PU 2-7/8" cementing stinger. TIH, set plug #4 into surface casing shoe. POOH & LD 2-7/8" pipe. PU 9-7/8" bit & scraper. TIH. ., • MEMORANDUM State of Alaska Alaska Oil and Gas Conservation Commission TO: Jim Regg ~ r /~~~I' ~ ~ DATE: December 28, 2006 P.I. Supervisor j 1 FROM: Chuck Scheve Petroleum Inspector SUBJECT: Plug & Abandonement Oliktok Point I-1 Kerr McGee Exploration 2061370 CONFIDENTIAL Section: 5 Township: 13N Range: 9E Meridian: UM Lease No.: ADL390615 Drilling Rig: Nabors 245 Rig Elevation: 53.1 Total Depth: 8990 Operator Rep.: Gary Gorlich Casing/Tubin g Data: Casing Removal: Conductor: 16" O.D. Shoe@ 74' Casing Cut@ Feet Surface: 10 3/4" O.D. Shoe@ 2541 Casing Cut@ Feet Intermediate: O.D. Shoe@ Casing Cut@ Feet Production: O.D. Shoe@ Casing Cut@ Feet Liner: O.D. Shoe@ Casing Cut@ Feet Tubing: O.D. Tail@ Casing Cut@ Feet Ptugging Data: Tvpe Plug G~~~~ava ~„ Bottom Top of Cement Mud Weight Pressure bottom up1 of Cement Depth Verified? above plug Test Applied O en Hole -Bottom 8990 7262 Drill i e Ta no j ~ i ~ Tvpe Plug Founded on: Verified? Open Hole Bottom Drillpipe tag Perforation Bridge plug Wireline tag Annulus Balanced C.T. Tag Casing Stub Retainer No Surface I traveled to the Kerr McGee Oliktok Point I-1 location to witness the integrity test of the bottom cement plug in this well. A cement plug had been spotted in three stages from TD (8990} to an estimated top of cement at 7200. After 24 hours WOC drill pipe was run in the hole to 7262 where solid cement was tagged with 20K DP weight and the pump running. The top hydrocarbon Bering ~.~ zone was indicated at 7350'. This gives 88' of cement above the top zone. The height of this plug was discussed with AOGCC engineer Tom Maunder and accepted. Rev.:5/28/00 by L.R.G. Open Hole Plug Oliktok Point I-1 CS.xls 1/2/2007 Re: Top Of Cement in Oliktok Point I-1 Suspension Subject: Re: Top Of Cement in Oliktok Point I-'1 Suspension From: Thomas Maunder <tom_maunder@,admin.state.ak.us> Date: Thu, 28 Dec 2006 09:38:51 -0900 To: "Quay, Walter" _~~alter.Quay~l'a~rcenergy.com> ~O ~ - i ~`~ Walter, I got a call from the rig earlier this morning regarding this. The regulatory plugging requirement is 100' of cement above hydrocarbon. It appears that the cement plugs in OP I-1 have been satisfactorily tested for competence and that the tagged depth exceeds the required height above hydrocarbon. I don't see any issues here. Call or message with any concerns or questions. Tom Maunder, PE AOGCC Quay, Walter wrote, On 12/28/2006 9:32 AM: Tom, The third open hole plug in Oliktok Point I-1 was set from 7800' to the planned top at 7200'. The top show from the Mud Logging of this well was at 7410'MD. After the plug was placed, circulating from 7000', 3 bbls of cement was observed in the returns, from the top of the plug. After wOC time of 24 Hrs., the plug was tagged with a bit at 7262'. 20K lbs was set on the plug. Although this top of cement is 62' below the planned top, it is still 100' above the top of the first show. Walter Quay (907)339-6341(0) (907)230-3961 (C) oral tier. auayi~asrcer;ergy. c7m lofl 12/28/2006 9:39 AM SARAH PAL/N, GOVERNOR 333 W. 7`h AVENUE, SUITE 100 ANCHORAGE, ALASKA 99501-3539 PHONE (907) 279-1433 FAX (907) 276-75423 Michael Stockinger VP Drilling Kerr McGee Oi18~ Gas Corporation 3900 C Street Suite 400 Anchorage, AK 99503 Re: Exploration, Oliktok Point I-1 Sundry Number: 306-397 Dear Mr. Stockinger: Enclosed is the approved Application for Sundry Approval relating to the above referenced well. Please note the conditions of approval set out in the enclosed form. When providing notice for a representative of the Commission to witness any required test, contact the Commission's petroleum field inspector at (907) 659-3607 (pager). As provided in AS 31.05.080, within 20 days after written notice of this decision, or such further time as the Commission grants for good cause shown, a person affected by it may file with the Commission an application for rehearing. A request for rehearing is considered timely if it is received by 4:30 PM on the 23rd day following the date of this letter, or the next working day if the 23rd day falls on a holiday or weekend. A person may not appeal a Commission decision to Superior Court unless rehearing has been requested. DATED this day of December, 2006 Encl. ~~=3~ ~- c ~~~- Sincerely, STATE OF ALASKA ~ '~ ~ ~6 ~~~~ ALA IL AND GAS CONSERVATION COMM N~'' ~l . SEC I ~ ~0~~ APPLI ATION FOR SUNDRY APPRO ALS ~~ fission 20 AAC 2s.2so :~iasica Oii ~ Gas Cons> Carom 1. Type of Request: Abandon ^ Suspend Q ' Operational shutdown ^ Perforate ^ Waiver ~~ OPa Other ^ Alter casing ^ Repair well ^ Plug Perforations ^ Stimulate ^ Time Extension ^ Change approved program ^ Pull Tubing ^ Perforate New Pool ^ Re-enter Suspended Well ^ 2.Operator Name: 4. Current Well Class: 5. Permit to Drill Number: Kerr McGee Oil & Gas Corporation Development ^ Exploratory Q - 206-137 3. Address: Stratigraphic ^ Service ^ 6. API Number: 3900 C Street Suite 400, Anchorage AK 99503 50-23324-00 7. If perforating, Gosest approach in pool(s) opened by this operation to nearest 8. Well Name and Number; property line where ownership or landownership changes: Spacing Exception Required? Yes ^ No ^ Oliktok Point I-1 9. Property Designation: 10. KB Elevation (ft): 11. Field/Pool(s): ADL390615 ' • 53.1 Ex loration 12. PRESENT WELL CONDITION SUMMARY Total Depth MD (ft): Total Depth TVD (ft): Effective Depth MD (ft): Effective Depth TVD (ft): Plugs (measured): Junk (measured): Casing Length Size MD TVD Burst Collapse Structural Conductor 74 16" 115 115 Surface 2541 10 3/4" 2541 2072 5210 2480 Intermediate Production Liner Perforation Depth MD (ft): Perforation Depth TVD (ft): Tubing Size: Tubing Grade: Tubing MD (ft): NA NA NA NA NA Packers and SSSV Type: Packers and SSSV MD (ft): 13. Attachments: Description Summary of Proposal Q 14. Well Class after proposed work: Detailed Operations Program Q BOP Sketch ^ Exploratory Q Development ^ Service ^ 15. Estimated Date for 18-Dec-06 16. Well Status after proposed work: Commencing Operations: Oil ^ Gas ^ Plugged Q ~ .Abandoned ^ 17. Verbal Approval: Date: WAG ^ GINJ ^ WINJ ^ WDSPL ^ Commission Representative: wS ~~~ ~ (, J 18. I hereby certify that the foregoing is true and correct to the best of my knowledge. Contact Printed Name /~/C /.J~ ~'L ~~ ~" % c~ C ~ //t/(y ~yL Title V 7_ ~ L ~ ~~ Signatu a ~- Phone Date ZP"l- -3 ~7 D 1 z i~ zv v~ COMMISSION USE ONLY Conditions of approval: Notify Commission so that a representative may witness Sundry Number: ~~ ~ -' Test ^ Location Clearance ^ ^ Mechanical Integrity Plug Integrity `~ BOP Test ' Other: ~\~f-~~C `~C~ ~?.tit~v.~_9S l ®°i ~~v `t~ ~ ~9 b~~ C (~ ~~ J ""tt" ~ t1 Subsequent Form Required: ~`O~ .. ~- ~. i~}-; L (~ 2dQ6 APPROVED BY Approved by: CO ISSIONER THE COMMISSION Date: Z ~~ ~' Form 10-403 Revised 06/200 ~~ ~ f ~1 ~ L Submit in Duplicate ,~~ iz/f ~~Q6 ~t;A1~ December 18, 2006 Commissioner Alaska Oil and Gas Conservation Commission 333 W 7~' Avenue, Suite 100 Anchorage, Alaska 99501-3539 Re: Oliktok Point I-1 Kerr McGee Oil & Gas Corporation Application for Sundry to Suspend (10-403) • ~~~ t~1~,~ Anc,~or~~~ `''~~~:~~ Attached for your review is our Application for Sundry to Suspend the Oliktok Point I-1 well. Our anticipated start of the suspension operations for Oliktok Point I-l, is December 19, 2006. This well was drilled to 8990' MD through the zone of primary interest, logged and is now a candidate to be plugged for a future horizontal sidetrack, once production facilities are in place. The formation tops were found as: Lower Ugnu 7260 MD / 3329 TVD Schrader B1uff7858 MD / 3537 TVD SB N 8210 MD / 3649 TVD SB OA 8692 MD / 3811 TVD The first hydrocarbons was found at 7410' MD. The top cement plug is planned to be >100' above this depth, at 7200'. After plugging back with cement, the well would be suspended. - Ifyou have any questions or concerns about the Sundry, please call me at 339-6341 and I will do my best to address your questions or concerns. Your timely review of our Application for Sundry is greatly appreciated. Sincerely, Walter quay ASRC Energy Servic Project Drilling Supt: 3900 C Street (907)-339-6341 Suite 702, Rm 744 Anchorage, AK 99503 • • ~ca~aa~~aw 4liktok Point i-1 Suspend Drilling Rig: Nabors 245 Plug and Abandon Surface Location: 2051' FNL 81519' FEL of Section 5, T13N, R9E UM NAD27 X = 516,760.57' Y = 6,036,581.12' or (NAD83 X =1,656,791.99' Y = 6,036,333.12') Start Operations: 12/18/06 Operating Rig days: 2 TMD: 8,990' TVD: 3,912 DF: 42.0 Objectives: Suspend Well Casina -Actual: Hole Size Csg / Tb O.D. Wt/Ft Grade Conn Length Top MD I TVD Bottom MD / TVD N/A 16~ 65 L-80 76 0/0 115'/115' 13-1 /2 10-3/4" 45.5 L-80 BTC 2570' 0/0 2541 /2072' Producin Reservoir MD ft TVD BHP KWM Schrader Bluff, OA sand 8695' 3810' Sea Water Suspend Operations: 1. RIH with 650' of 2-7/8' tubing on 5" DP to TD 2. Circulate borioms up whit R/U cementers. Set Plug #1 3. PU to top of Plug #1. Circulate BU X 1.5. Set Plug #2 4. PU to top of Plug #2. Circulate BU X 1.5. Set Plug #3 5. POOH. PU 9-7/8' bit. TIH. After 8 hours of WOC, iag top of Plug #3. ~ ho~+`~ ~-~p+~ 6. POOH, PU 2-7/8' tubing for cementing. TIH to 3041'. Circulate BU X 1.5. Set Plug #4 7. PU to 2400'. Circulate BU X 2. POOH 8. Run and sei the EZSV Bridge Plug @ -2300' 9. Run 2100' of 3-1/Z' kill string 10. ND BOP's. NU and test the tree. 11. Freeze Protect through Tree. . 12. RID Nabors 245. Q~aY 12/18/2006 • ~j Oliktok Point- ~•~~ Injector #1 PB1 ow/wo ,G„r, ~ c...o Eb1..0 E~ ~ ,~,o ~ s.v ~~ >~a E6YR W. nrNCa. KC-20V as z~noo 4ov as 3,»noa sail Mgiss Sv 3'U2' 1(al 8~! $000' Baca PormsUoN 2,006' 7,82f1' OlS 49100' Caapo4Ma E2SV Pop Esc PhgTop z,ar Sail lingtae: 7~ 1P3H"C PreMrt 2,541' 2,07;' ~aaOCdabo MFRlCaa ~ ~ Est Plug 6Ma ~ 3,041' Eal. Fsug Tap 7,200' First Shaw 7,350' 3,36D' Eat PAq TW ~ T,000* Eat F#q Top ~ E,'~' ~ . S~ELldGi! w i pA6af, asa w 15.arfa t. i5 a9~aw ~~ ~~ 29.7 ReIR lo. ~ s.7e' KYW 7aW Fd CuY},Nlaa Fri ~~O \~C V~\vU-'~.fc ~~.. ~30 ~ - ~> ~SU ~~ a.sear.ao7w 7aa vFs 7.f011as111 azs M 307 i 7esarvg 7.15 ~ Sov ~c~ CG`C.~~~~04\ S ~ ~`~ ~6~ ~~~? d a4.76ab 561 w 76.~aq tb~ tK F vNlcloic Poka ~1 wr eonesads 12/18!2006 • • Confidential NOTE TO FILE Oliktok Point I-1 PTD 206-137 Sundry Application: 306-397 Request: Kerr-McGee has applied to suspend this well. Recommendation: I recommend approval of this request. Discussion: Kerr-McGee ("KM") has drill their first well in the Niakiatchuq Development. The well is located on a gravel pad directly south of the Kuparuk Sea Water Treatment Plant near Oliktok Point. 20AAC 25.110 (a)(1)(B) allows a well to be suspended if it is a candidate for redrilling. KM has drilled this well to provide delineation information to assist in planning their development. KM proposes to set a continuous cement plug in 3 sections from TD (8990' md) to 7200' md. According to their logs, this should result in 190' of cement above the identified top of hydrocarbons. Another cement plug will be set across the surface casing shoe and a bridge plug will be set above the cement. The top of the open hole cement plug will be tagged and the casing will be pressure tested after setting the bridge plug. The Inspectors will be notified of the opportunity to witness these events. KM further proposes to install a kill string in the well and freeze protect it. KM does not propose to install a surface plug as required by 20 AAC 25.110(d)(2), however the well is located on a gravel pad accessible by all-weather roads. The well will be equipped with wellhead assembly as required by 20 AAC 25.110(d)(1). As designed, KM's plan will secure the well and keep it available for future operations. I recomm~'end that the KM proposal be approved. Tom Maunder, PE Sr. Petroleum Engineer December 20, 2006 Re: Suspend Sundry for Oliktok Point I-1--use this one • • Subject: Ke: Suspend Sundrv [or Oliktok Point I-I--use this one From: T}10171aS Maunder ~ ~_tom i~launder~a~~admin.state.ak.us> Date: ti~'cd,24 Dec 20O(> 1~~:Z~):02 -09UU 'I'o: "Quay, 1~/alter" . -~~~'alter.Qu t}'~r;:asrc~ner~~y.com> C'C': "titockin~~er, Nike" . >tlikc.Stockii~~~~r;"a anadarho.cc>rn:=, Stc:~c [)avi~s ~~-steve_da~~ies~c~?admirl.siate.al..us=~, Davc Rohy~ <davc_robvi~l'admii~.state.ak.«s% Walter, I forgot to mention. The same comment regarding XS applies to the plug planned across the surface casing shoe. Based on gauge hole, I calculate the XS to be about 8%. Tom Maunder, PE AOGCC Thomas Maunder wrote, On 12/20/2006 10:27 AM: Walter, I am reviewing the sundry for suspending Oliktok Point I-1. 1. The XS amount for the deep plugs based on gauge hole is only 10%. Depending on if cement is seen when circulating after setting plug #1, could the volumes of the other plugs~be adjusted? When intermediate casings are set in West Sak wells in Kuparuk, the XS volume used is generally 25 - 30% which has shown to give the desired TOC. 2. A pressure test of the casing after setting the bridge plug should be planned. 3. Your rig personnel should plan to contact the Inspector to witness the tagging of plug #3 and the setting and pressure testing of the bridge plug... I look forward to your reply. Call or message with any questions. Tom Maunder, PE AOGCC Quay, Walter wrote, On 12/18/2006 9:44 AM: ', «Suspend OP Il.pdf » Tom, ', Here is the proposal for suspending OP I-1 I will follow up with a phone call. Walter Quay (907)339-6341 1 of 1 12/20/2006 10:33 AM RE: Suspend Sundry for Oliktok Point I-1--use this one • Subject: RE: Suspend Sundry for Oliktok Point I-1--use this one From: "Quay, Walter" <Walter.Quay@asrcenergy.com> ~0~- ~ Date: Wed, 20 Dec 2006 14:15 : ~ ~ -0900 'I'o: ~hhomas ~1aunder ~tonl ina~ulder~~r;admin.statc.~~k.us=- C'C: "St~~ckin~~er, ~~1il~e" ~~_Mike.Slockin~~er;~i?an~i~larku.con~=~~, St~~e D~i~-its tevc u~~~~ies~~i~.admin.state.ak.us'-, Day-e Robrr <~dave roh_~~<<~?admin.state.ak.us=-, ~~1ark ~~'ediT~an ~= ~,1 arl:. W'cdman(r~; E Ial~ibu-rton.com=~ Tom, 1. On the % excesses of cement, we will observe when circulating off the top of these plugs and adjust the % excess accordingly. 2. We will pressure test the bridge plug and casing to 1000 psi. 3. We will notify the inspector prior to the tagging of plug #3 and the pressure testing. The timeline forecast: Following the present logging, the well suspension would start on Sunday 12/24/06. Walter Quay (907)339-6341 -----Original Message----- From: Thomas Maunder [mailt,o:tom maux?de r:~adrin.st:ate.ak.us] Sent: Wednesday, December 20, 2006 10:29 AM To: Quay, Walter Cc: Stockinger, Mike; Steve Davies; Dave Roby Subject: Re: Suspend Sundry for Oliktok Point I-1--use this one Walter, I forgot to mention. The same comment regarding XS applies to the plug planned across the surface casing shoe. Based on gauge hole, I calculate the XS to be about 8%. Tom Maunder, PE AOGCC Thomas Maunder wrote, On 12/20/2006 10:27 AM: Walter, I am reviewing the sundry for suspending Oliktok Point I-1. 1. The XS amount for the deep plugs based on gauge hole is only 10%. Depending on if cement is seen when circulating after setting plug #1, could the volumes of the other plugs be adjusted? When intermediate casings are set in West Sak wells in Kuparuk, the XS volume used is generally 25 - 30% which has shown to give the desired TOC. 2. A pressure test of the casing after setting the bridge plug should be planned. 3. Your rig personnel should plan to contact the Inspector to witness the tagging of plug #3 and the setting and pressure testing of the bridge plug. I look forward to your reply. Call or message with any questions. Tom Maunder, PE i AOGCC Quay, Walter wrote, On 12/18/2006 9:44 AM: 1 of 2 12/20/2006 2:22 PM RE: Suspend Sundry for Oliktok Point I-1--use this one • « Suspend OP Il.pdf» Tom, Here is the proposal for suspending OP I-1 I will follow up with a phone call. Walter Quay (907)339-6341 2 of 2 12/20/2006 2:22 PM • Memo To: Tom Maunder AOGCC, Anchorage, AK ~ ~ ~ _ ~ From: Walter Quay, Mike Stockinger Date: December 22, 2006 Re: Weekly Update for KMG/Anadarko Oliktok Point Project - Oliktok Point I-1 Confidential December 15, 2006: Directional Drill from 8200' to 8990'(TD). Short trip to 7000'. POOH for Logging. December 16, 2006 Wiper Trip to TD. Circulate 3XBU. POOH to Shoe Slip & Cut Drill Line. TIH to TD. Circulate 2XBU. POOH December 17, 2006 Continue POOH Downlink LWD. LD Motor. PU Baker Atlas RCI tools. Repair Top Drive. Finish PU RCI tools. TIH December 18, 2006 RU WL Sheave. TIH with DP conveyed RCI. MU side entry sub. Unable to make wet connect. POOH & Inspect RCI tools. December 19, 2006 Found debris in drill string. TIH with RCI tools on DP. Latch tools. Correlate to depth. Set packers and proceed with sampling procedure. December 20, 2006 Continue with sampling procedure. Lost communication with RCI. POOH to troubleshoot problem. December 21, 2006 Complete BOP Tests (Witness waived by Jeff Jones). RU LWD TIH to TD. Circ and condition hole. December 22, 2006 CBU X 2. MAD pass with LWD. POOH. Download LWD. 1 • • Memo To: Tom Maunder AOGCC, Anchorage, AK From: Walter Quay, Mike Stockinger (~ Date: December 15, 2006 `~~ "' ~ ~~ Re: Weekly Update for KMG/Anadarko Oliktok Point Project - Oliktok Point I-1 Confidential December 8, 2006: RIH. Test Casing to 2500 psi for 30 Minutes. Drill FC & FS, clean out and drill 20' of new hole. Run LOT to 13.6 ppg EMW. Directional Drill to 9-7/8" hole to 2985' MD. December 9, 2006: Directional Drill 9-7/8" hole to 3715'. Speny Computer Problems encountered and solved. Rig Repair of 4" isolation valve for mud pump #1. December 10, 2006: Completed 4" Isolation Valve Repair. Directional Drill 9-7/8" hole to 5126. December 11, 2006: Directional Drill 9-7/8".hole to 5981'. 10 Stand Wiper Trip. Directional Drill 9-7/8" hole to 6826'. December 12, 2006: Directional Drill 9-7/8" hole to 7014'. POOH for bit, LWD memory & BOP test. December 13, 2006: Test BOPS. MU new bit, motor, download LWD &TIH December 14, 2006: Complete TIH. Directional Drill from 7014 to 8200' December 15, 2006: Directional Drill from 8200' to 8990'(TD). Short trip to 7000'. POOH for Logging. 1 • J To: Tom Maunder AOGCC, Anchorage, AK From: Walter Quay, Mike Stockinger Date: December 8, 2006 ao6- ~ 3~ Re: Weekly Update for KMG/Anadarko Oliktok Point Project - Oliktok Point I-1 Confidential December 2, 2006: Backream and condition hole for casing with short trip. POOH for casing. RU to run casing. MU 10-3/4" Casing Shoe December 3, 2006: Run 10-3/4" Surface Casing to 2541' MD. Circulate and condition for cementing. Mix and Pump 335 Bbls (453 sx Permafrost L, 10.7 ppg, 4.15 ft3/sx) Lead Cement and 46 Bbls (225 sx G, 15.8 ppg, 1.15 ft3/sx) tail cement. Bump Plug, Floats Held. No lost circulation observed. Est. 100 bbls cement back to surface. ND diverter. December 4, 2006: Complete ND Diverter. NU Wellhead. RU BOP December 5, 2006: RU BOP. Test BOP System. Jeff Jones AOGCC Witness. December 6, 2006: Complete BOP Testing. LD BHA. Repair Pipe Skate. December 7, 2006: PU 5" DP to reach TD. Repair Pipe Skate & Top Drive. MU 9-7/8" Bit & BHA December 8, 2006: RIH. Test Casing to 2500 psi for 30 Minutes. Drill FC & FS, clean out and drill 20' of new hole. Run LOT to 13.6 ppg EMW. Directional Drill to 2985' MD. 1 r ~ri[~^ • To: Tom Maunder AOGCC, Anchorage, AK From: Walter Quay, Mike Stockinger Date: December 1, 2006 Re: Weekly Update for KMG/Anadarko Oliktok Point Project - Oliktok Point I-1 ~~~~,~ X31 Confidential November 27, 2006: November 28, 2006: Completed Rig Commissioning. Initial diverter testing witnessed by John Crisp..:.. Added 20' to the 16" diverter line to extend beyond the Cuttings Module. November 29, 2006: Oliktok Point I-1 Spudded. Drill to 573' November 30, 2006: Directionally Drilled to 2355' December 1, 2006: Drilled to Surface Casing Point at 2576'. Preparing Hole to run casing. 1 • Mr. Michael Stockinger Drilling Manager Kerr McGee Oil and Gas Corporation 3900 C Street Ste 400 Anchorage, AK 99503 Re: Exploratory, Oliktok I-1 FRANK H. MURKOWSKI, GOVERNOR 333 W. 7`" AVENUE, SUITE 100 ANCHORAGE, ALASKA 99501-3539 PHONE (907) 279-1433 FAX (907) 276-7542 Kerr McGee Oil and Gas Corporation Permit No: 206-137 Surface Location: 2051' FNL 8~ 1519' FEL Sec 5, T13N, T9E, UM Bottomhole Location: 1243' FSL 8~ 735' FEL Sec 33, T14N, R9E, UM Dear Mr. Stockinger: Enclosed is the approved application for permit to drill the above referenced exploratory well. This permit to drill does not exempt you from obtaining additional permits or an approval required by law from other governmental agencies and does not authorize conducting drilling operations until all other required permits and approvals have been, issued. In addition, the Commission reserves the right to withdraw the permit in the event it was erroneously issued. A weekly status report is required from the time the well is spudded until it is suspended or plugged and abandoned. The report should be a generalized synopsis of the week's activities and is exclusively for the Commission's internal use. All dry ditch sample sets submitted to the Commission must be in no greater than 30' sample intervals from below the permafrost or from where samples are first caught and 10' sample intervals through target zones. You have provided specifications for proposed abandonment plugs. It is not possible to approve the P8vA proposal prior to the well being drilled. When it has been determined to P8sA the well, Kerr-McGee should file a Sundry Notice (Form 403) providing the determined formation information and planned plug depths. Operations must be conducted in accordance with AS 31.05 and Title 20, Chapter 25 of the Alaska Administrative Code unless the Commission specifically authorizes a variance. Failure to comply with an applicable provision of AS 31.05, Title 20, Chapter 25 of the Alaska Administrative Code, or a Commission order, or the terms and conditions of this permit may result in the revocation or suspension of the permit. When providing notice for a • representative of the Commission to witness any required test, contact the Commission's petroleum field inspector at (907) 6~1T3607 (pager). N DATED this day of November, 2006 cc: Department of Fish & Game, Habitat Section w/o encl. Department of Environmental Conservation w/ o encl. STATE OF ALASKA ALAS~IL AND GAS CONSERVATION COMMIS~I PERMIT TO DRILL 20 AAC 25.005 ~VED v~~~~EP ~ 5 206 Alaska Oil & has Con 1a. Type of Work: 1 b. Current Weil Class_ Exploratory Q Development Oil c. Specify if well is proposed for: nChOrapp Drill ^, Redrill ^ Stratigraphic Test ~^ Service ^ Development Gas ^ Coalbed Methane ^ Gas Hydrat~se ^ Re-entry ^ Multiple Zone ^ Single Zone ^ .OV Shale Gas ^ 2. Operator Name: 5. Bond: Blanket Ingle Well 11. Well Name and Number: Kerr McGee Oil & Gas Corporation Bond No. _ j~l.~q$~7$ Oliktok Point I-1 3. Address: 6. Proposed epth: ~j•LB-O 12. Field/Pool(s): 3900 C Street, Ste 400, Anchorage, AK 99503 MD: 8936 • TVD: 3905 Exploration 4a. Location of Well (Governmental Section): 7. Property Designation: Surface: 2051' FNL & 1519' FEL of Section 5, T13N, R9E UM' ADL39061E _ Top of Productive Horizon: 8. Land Use Permit: 13. Approximate Spud Da e: '( 1050' FSL & 750' FEL of Section 33, T14N, R9E UM ' ADL417493 /~• Z(S •D(m Total Depth: 9. Acres in Property: 14. Distance to Nearest 1,243' FSL & 735' FEL of Section 33, T14N, R9E UM 1280 Ac Property: 750' ° 4b. Location of Well (State Base Plane Coordinates): 10. KB Elevation 15. Distance to Nearest Weil Surface: x- 516760. y- 6,036,581 - Zor 4 (Height above GL): 52' feet Within Pool: None 16. Deviated wells: Kickoff depth: 200 feet 17. Maximum Anticipated Pressures in psig (see 20 AAC 25.035) Maximum Hole Angle: 72 degrees Downhole: 9927 Surface: 1530 ' 18. Casing Program: Specifications Top -Setting Depth -Bottom Cement Quantity, c.f. or sacks Hole Casing Weight Grade Coupling Length MD TVD MD TVD (including stage data) N/A 16 65 L-80 80 Surface Surface 80 80 13-1 /2" 10 3/4 45 L-80 BTC-M 2600 Surface Surface 2172 1818 423 sx Permafrost L (312 bbis) 2172 1815 .2600 1997 209 sx "G" (41 bbis) Tail 9-7/8" 8936 3905 19. PRESENT WELL CONDITION SUMMARY (To be completed for Redrill and Re-Entry Operations) Total Depth MD (ft): Total Depth TVD (ft): Plugs (measured): Effect. Depth MD (ft): Effect. Depth TVD (ft): Junk (measured): Casing Length Size Cement Volume MD TVD Conductor/Structural Surface Intermediate Production Liner Perforation Depth MD (ft): Perforation Depth TVD (ft): 20. Attachments: Filing Fee ^ BOP Sketch ~ Drilling Program 0 Time v. Depth Plot ~ Shallow Hazard Analysis Q Property Plat ^~ Diverter Sketch ^~ Seabed Report ^ Drilling Fluid Program ~ 20 AAC 25.050 requirements Q 21. Verbal Approval: Commission Representative: Date 22. I hereby certify that the foregoing is true and correct. Contact Printed Name Mr. Michael Stockinger Title Drilling M nager, Kerr McGee Oil & Gas Corporation a ~ Signature y~~~~ /? ~ l Phone 2 ~ ~ - ~D ! 3 - ~p l C7 Date / - Z l~ - d ~p Commission Use Only Permit to Drill •~/1 N b ~ "f'~7 API Number: ~' ~ Z3 3 2 ~ Permit Approval See cover etter for other um er: L {.J j 50- f L - . Date: requirements. Conditions of approval : If box is checked, well may not be used to explore for, test, or produce Coalbed meth e, gas hydrates, or gas contained in shal s: O h ~ ~© ~ ~ ~ ' ' ~N ~A~~ t er: ~ v~\o•.~V y,.~ ^ Q ~y tJS No^ d: Yes[/ Samples req d: Yes[V o^ Mud log req ~'~~~'~ ~®~rc P`~C~~ ~ ,~ ~ Q~t,?~©V ~ ~~ ~~ZS measures: Yes^ No ~ Directional svy req'd: Yes~No ^ J /~ ~~ `~ ROVED BY THE COMMISSION DATE: r• a ~ ,COMMISSIONER Form 10-401 Revised 12/2005 nal"'NA.L Submit in Duplicate ~/~~ to _ ~ /On •OL September 20, 2006 Commissioner Alaska Oil and Gas Conservation Commission 333 W 7th Avenue, Suite 100 Anchorage, Alaska 99501-3539 Re: Oliktok Point I-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 Oliktok Point I-1 development well located from a gravel pad at Oliktok Point. This original APD is submitted along with one (1) copy and the $100.00 filing fee. The APD packages include form 10-401, a shallow hazard 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 Proposed" location plat which will be followed by an "as built" plat when available. This application for permit to drill includes a pilot hole that will be drilled through the primary zone of interest, logged and then plugged for a future sidetrack and horizontal. After plugging back with cement, the well will be suspended. Our anticipated spud date for Oliktok Point I-lis on or about November 1, 2006. The construction of the drilling pad is well underway. If you have any questions or concerns about the APD or the drilling plan, please call me at 339-6341 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, u~~ Walter Quay ASRC Energy Service Project Drilling Supt: 3900 C Street (907)-339-6341 Suite 702, Rm 744 Anchorage, AK 99503 • 3/38 KfRR-M~CfECOl~OHATlON Oliktok Point I-1 Drill, Complete, Test & Plug Drilling Rig: Nabors 245 Drill, Complete, Test, Suspend Surface Location: 2051' FNL 8~ 1519' FEL of Section 5, T13N, R9E UM NAD27 X = 516,760.57': Y = 6,036,581.12' ' or (NAD83 X = 1,656,791.99' Y = 6,036,333.12') Target 1: 1050' FSL & 750' FEL of Section 33, T14N, R9E UM NAD27 X = 522,798' Y = 6,039,700' Bottom Hole Location: 1,243' FSL & 735' FEL of Section 33, T14N, R9E UM X = 522,806' Y = 6,039,891' Estimated Spud Date: 11/01/06 Operating Rig days: 22 PTD: 8,936' TVD: 3,905' Pad Elev: 12 ft DF: 40 ft Geologic Objectives: Schrader Bluff "OA" Sand Mud Program: 13-1/2" Surface Hole (0' - 2600'): KCUPolvmer Density' Viscosity YP PV 10 S. Get API W/L ' Initial 9.0 80 -120 35 - 45 13 - 21 10 -15 < 15 Final 9.0-10.0' 50-80 15-30 15-23 10-15 6-8 9-7/8" Intermediate Pilot Hole (2600' - 8936'): KCUPolymer Density ;Viscosity YP PV pH API W/L `' CI 9.0-9.6 40-60 15-25 9-18 8.5-9.5 <6 50-90 Recommended Bit Program: Bit 'Hole Size Depth (MD) Footage Bit Type , TFA GPM 1 13-1/2 in Surf- 2,600' 2,600' Mill Tooth .75 - .90 450 - 650 2 9-7/8 in 2,600 - 8,936' 6,336 Mill Tooth .50 - .75 400 - 600 W. Quay -- 9/25/2006 Page 1 OP-I1 Drilling Permit Program.doc • 4/38 Casing Program Hole Size Csg / Tb O.D. WtIFt Grade Conn Length Top` MD / TVD Bottom MD / TVD N/A 16" 65# L-80 BTC 80 0/0 80' /80' 13-1/2" 10-3/4" 45.5# L-80 BTC 2,600' 0/0 2,600' / 1,997' - Cement Program: Casin Size 10-3/4", 45.5#, L-80, BTC Surface Casin at 2,600' MD Parameters Excess from B/Permafrost to Conductor = 125% over gauge hole. Use 25% excess below the B/Permafrost. Shoe track = 85 ft. Cement: 353bb1 Wash 10 bbl water S acer 50 bbl of s acer mixed at 10 Lead 312 bbl, 423 sx of Permafrost L: 10.7 and 4.15 ft /sx Tail 41 bbl, 209 sx "G" mixed at 15.81b/ al & 1.15 ft /sx Tem Casin Point BHST 68° F from offset data Hole Size Plu Back 9-7/8" O.H. From 8936' MD Parameters: Excess = 25% in O.H. over gauge hole. TOC OH Plug ± 1,000' above TD. TOC Surface Shoe Plu , ± 200 above Shoe. Cement: 196 bbl Wash 10 bbl water OH Plu 118 bbl, 584 sx "G" mixed at 15.8 Ib/ al & 1.15 ft3/sx Tem Casin Point BHST 104° F from offset wells Wash 10 bbl water Surface Shoe Plu 78 bbl, 387 sx "G" mixed at 15.8 Ib/gal & 1.15 ft3/sx Tem Casin Point BHST 68° F from offset wells Integrity Testing: Test Point: MD / TVD Kick Tolerance Test Type: EMW: 10-3/4" Shoe 2600' / 1997' > 50 bbls LOT 12.0 ppg Surveys &MWD: While Drilling: Surface to TD: MWD surveys every 90 to 180 ft IIFR Casandra for magnetic survey verification W. Quay -- 9/25/2006 Page 2 OP-II Drilling Permit Program.doc • • 5/38 Mud Logging: Surface Hole [13-1/2"]: Full Service Rig instrumentation: PVT, Flow-Show, gas detectors, H2S detectors as required. / Mud loggers from 1200' to casing point: Three sets of washed & dried samples every 60 ft. Sample at 30 ft. intervals in shows or zones of interest. One set of wet samples for paleo analysis on 60' Sample Intervals. Loggers will be collecting isotube samples on 300' intervals and 30' intervals in the OA zone of interest for isotope analysis. Pilot Hole 9-7/8" Full Service Rig instrumentation: PVT, Flow-Show, gas detectors, H2S detectors as required. / Mud loggers from casing point to TD: Three sets of washed & dried samples every 60 ft. Sample at 30 ft. intervals in shows or zones of interest. One set of wet samples for paleo analysis on 60' Sample Intervals. Loggers will be collecting isotube samples on 300' intervals and 30' intervals in the OA zone of interest for isotope analysis. Evaluation Program: 13-1/2" Surface Hole Open Hole: MWD /LWD: Open Hole: E-Line: MWD / GR /Res./ Gas Detection, Mud Logging, samples None 9-7/8" Pilot Hole Open Hole: Cased Hole: MWD /LWD: Open Hole: E-Line: MWD /Quad-Combo/ .~ Gas Detection, Mud Logging, samples Drill Pipe Conveyed Baker Straddle Packer RCI Formation Markers: Formation Tops MD (ft) Pilot ND (ft) Pore Pressure si EMW Ib/ al B/Permafrost 2,172 1,815 T/Ugnu 6,806 3,213 M Sand 7,200 3,341 T/SB 8,108' 3,651 N Sand 8,251 3,698 OA Sand 8,736 3,848 1,800 ~ 9.0 TD 8,936 3,905 W. Quay -- 9/25/2006 Page 3 OP-I1 Drilling Permit Program.doc • 6/38 Well Control: The casing head will be installed on the 16" conductor pipe. The 21" diverter with 16" Diverter Line will be rigged up for the drilling of the surface 13-1/2" hole and utilized to drill to the casing point in ~ 500' below the permafrost with the diverter system for secondary well control. At casing point, 10-3/4" surface casing will be set and cemented. It is planned to circulate cement to surface. After setting and cementing the 10-3/4" surface casing, the diverter spool will be replaced with amulti-bowl casing spool. The 13-5/8" (5M) BOP stack will be NU and tested. The intermediate hole section will be drilled with well control equipment consisting 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 when installed and then on a weekly basis thereafter. Any ram changes and / or flange "breaks" will be tested before continuing. 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 casing to 2500 psi. The maximum anticipated Surface Pressure is calculated from extrapolated BHP data recorded at MPU which include a 0.30 psi/ft oil gradient to correct for TVD and a gas gradient of 0.11 psi/ft to surface as required: Nikaitchuq #4, Schrader Bluff BHP = 1927 psi Maximum Surface Pressure = 1927 psi - (3970 ft x 0.11 psi/ft) = 1530 psi - Disposal of Drilling Waste: Cuttings Handling: Cuttings generated from drilling operations will be hauled using super suckers to G & I #3: located on DS-04, Prudhoe Bay, for disposal. Fluid Waste Handling: All drilling and completion fluid wastes will be hauled to 1 R-18 at Kuparuk for disposal. Sewage (grey/black water): Camp waste water will be hauled to the sewage treatment plant(s) at Kuparuk / Prudhoe Bay /North Slope Borough where it will be treated and injected. H2S: • H2S has not been detected or reported from any of the offset wells that produce from the Schrader Bluff formation. As a precaution, however, H2S monitors will ~ be used at all times in accordance with State Regulations. W. Quay -- 9/25/2006 Page 4 OP-I1 Drilling Permit Program.doc • • 7/38 DRILLING AND ABANDONMENT PROCEDURE Pre-Rig Work: 1. Install the cellar and drive the 16" insulated conductor to + 115' RKB. ~ 2. NU the 16" casing head on the 16" pipe (conductor). 3. Stockpile mud and cement supplies on location. 4. Stockpile casing and tubing on/near location. 5. Ensure communications are up and running: satellite phones, cellular phones & radios. 6. Spot the medic skid and have the P/A on duty. 7. Ensure the permits are in order. 8. Notify the AOGCC 24 hours prior to spud, diverter function test, 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 one 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 toolpusher 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: 1. MIRU Nabors 245, the camps, communications, medic skid, rig instrumentation, directional drilling equipment, LWD equipment, gas detectors, PVT, Flo-Show, etc. 2. N/U Nabors diverter. Configure and function test the diverter system with the AOGCC field supervisor present to witness the test. Surface Hole Section: 3. Take on water and/or mix spud mud. Make sure all solids control equipment if operating at capacity. Test run the pumps, Top Drive, SCR, Draw works, etc. before accepting the rig. 4. Clean out the conductor to 115'. P/U 5" drill pipe and rack it in the derrick. P/U 5" HWDP and rack it back. P/U the 13-1/2" Pilot Hole BHA with MWD/GR/RES tools. Prepare to spud. 5. Rotary drill to surface casing point. Control drill if necessary as limited by the solids control equipment, etc. Use Super Suckers and vac trucks to haul off the waste generated while drilling. The planned casing point is a shaley section to be confirmed by the wellsite geologist: ± 2600' MD. 6. At casing point, circulate the hole clean. Make a wiper trip. Pump out to the HWDP, and then finish POOH. L/D LWD tools as required. R/U to run 10-3/4" surface casing. - 7. Run and cement the 10-3/4", 45.5# surface casing on mandrel hanger as programmed. After circulating cement to surface, drain and wash out the Diverter stack.. W. Quay -- 9/25/2006 Page 5 OP-I1 Drilling Permit Program.doc • • 8/38 8. Remove the diverter spool. N/U and test the 13-5/8" BOP's. Test the BOPE to 250 psi / 5000 psi. Test the annular to 250 psi / 3500 psi. The AOGCC field inspector should witness the BOP test. 9. P/U the 9-7/8" Pilot Hole BHA. RIH to the float collar. Test the casing to 2500 psi on chart for 30 minutes. Drill out the shoe track and 20 ft of new hole. Circulate the hole clean. Conduct a LOT on the 10-3/4" shoe: (LOT expected to be > 12 ppg EMW). Notify the Superintendent of the FIT results before drilling ahead. Intermediate `Pilot" Hole Section: 10. Drill ahead to the OA Target +/-200' of rathole. 11. At the pilot hole TMD, circulate and condition the hole for logs. Pull (or pump) out to the shoe and circulate bottoms up. Then finish POOH. L/D LWD tools as required. 12._ R,~l lie. Rgnspery hole lops as directed by wellsite geologists. Suspend Operations: -`- y 13. RIH with OEDP to TD. Circulate bottoms up while R/U cementers. Plug back the pilot hole with a 1000' balanced cement plug. POOH to 3100' and circulate the well and drill string clean. 14. Set 700' Surface Shoe Plug from 500' below to 200' into the surface casing. 15. ND BOP's. NU and test the tree. R/D Nabors 245. ~'~`'S5~'"S~ Q ~-~~® h~ h.<;~~ ~_--~~ , - S ~ ~~ , Attachments: • "As Proposed" survey plat ~ ~~~ ~ • Days -vs- Depth Graph ~tra---C7 ~ • Frac Gradient Graph • Temperature Gradient Graph • Wellbore Schematics • Directional Drilling Plan • Drilling Mud Program • Shallow Drilling Hazards Evaluation • Nabors 245 BOP & Diverter diagram • Nabors 245 Choke Manifold Diagram • Wellhead Schematic W. Quay -- 9/25/2006 Page 6 OP-Il Drilling Permit Program.doc NQTES: 1. COORDINATES SHOWN ARE A.S.P, ZONE 4,- / NAD 83. DISTANCES SHOWN ARE TRUE HORIZONTAL DISTANCES. 2. GEODETIC COORDINATES SHOWN ARE NAD 83. 3. BASIS OF LOCATIONS ARE D.S. 3R MONUMENTS PER LOUNSBURY & ASSOCIATES. 4. PROPOSED CONDUCTORS ARE LOCATED WITHIN PROTRACTED SECTION 5, TOWNSHIP 13 NORTH, RANGE 9 EAST, UMIAT MERIDIAN. Oa 5 ~~` ~ ,~~ e~' DSIwE~ OLIKTOK DOCK THIS ~ PROJECT OP-1 OP-I 'Y' 6 036 3 3.1 6 036 3 9.36 'X' 1 656 791.99 1 656 784.93 at 70'30'39.02"N 70'30'38.98"N on 149'51'57.58"W 149'51'57.79" S/L 2 051' F.N.L. ~ 2 055' F.N.L. off et 1 519' F. .L. ~ 1 526' F.E.L. STP PAD ., DS-art 9'•, OLIKT01f ; STAGING A•, ' DS-30 ,.. 18 ~ :'•1 C1 15 f os-3o <~° ~s zo z~ zz T13N, R9E VICINITY MAP SCALE: 1" = 1 Mile _ ~ OP-11 ~\ ~ N / ' ' ~ ~~ OP-12 / ~~ i ~ ~ ~- ~~~ OLIKTOK ~ ~~ ~ POINT PAD ~ , ~ ~ ~~ \~ SCALE: o = ~~ 1" 200' ~I ~ r - ~ ~. ~~ ~ ~~ I ~ ~ ~ t1~' ~~ /~ ~~O ~~i ~ ~ ~ o ~,~ _ .' ~ ~ \ i ~' ~ ~~ \\ / ~'` ~, ~~ ~ STAgNG AREA WUN3BURY . ~ L ~ t A3~Ot.U-cwnm ~m ~~ ~~~~~~~~~~ OLIKTOK POINT PAD CONDUCTORS OP-I1 & OP-I2 PROPOSED LOCATIONS CAOD FILE N0. DRAYNNG N0: PART: REV: LK601D668 9 os os NSK 6.01-d668 1 ~ t o ~ • o~ 1000 2000 3000 s d 4000 L ~ 5000 d -~ 6000 ' 7000 ' 8000 ' 9000 Oliktok Point I-1 ~ X11 Days -v- Depth 10/38 1 I I I I I I I I I I I I 1 __L__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 I I I I 1 I I I I I __J__J___1___I___ I I I I 1 I I I 13-1 /2" Hole I I 1 I I I I I I i I I I 1 1 I __I___t___L__L__ I 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 I I I I I I I 1 __1__1__1__J__ I I I 1 I I I I I I I I I I I I I I I I 1 1 I I I I I I I I I I I 1 I I ___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 1 I I I i I I I I I 1 __I __1__1__1__ I I 1 I I I I I I I 1 I I I 1 I I I I I I I I I I I I 1 I I I 1 I I I I _x___1___1___1___ I I I I I I I I 1 I I I 1 I t I i I I I I I I 1 I I I 1 I I I 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 I I I I I I 1 I ~ I I I I I I i I __~__~__~___1__ I I 1 I i I I I I 1 I I 1 1 I I I 1 I I I I I I I I I I I I 1 I I I I I ___1___1___1___1___ I I I I I I 1 I I I 1 I I I i I I I i I I I I I 1 I I I _ _ ~ _ _ ~ _ _ ~ _ _ ~ _ _ I 1 I I I I I i I I 1 i I I 1 1 I I I I 1 1 I 10-3/4" Casing at 2600' I 1 I I I I 1 I _ _ _I _ _ _1 _ _ _ 1 _ _ _ _ _ _ 1_ _ _ ~_ _ _ ~ _ _ ~ _ _ I I 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 I I _ _ ~ _ _ _ _ ~ _ _ ~ _ _ I I I I I 1 I I 1 I I I 1 I I I t I I 1 I I 1 I _ _ _I _ _ _ I _ _ _ 1 _ _ I _ _ I I i I I I I I I I 1 I i 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 I I I I I 1 I I i I I I I i I I I I I I 1 I I I 1 I 1 I I I 1 I --'---'---'---' I I i I - I I I I I I I I I 1 I I I I I I I I I t I I I I I I I 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 I 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 1 I 1 I 1 I 1 I I I I 1 I I I I I I I 1 I I I 1 I I ,---,---~ - I -- I i I ~ I f I I I 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 1 --r--r--j--7-- I I 1 1 I I I I I I i I I I 1 I I I I I I I I I I I I I I I I I I I I I --r--r-r-7-- I I I I 1 I I I i I I I i 1 I I I I I I I I I I I I I 1 I I I i I I ~ 1 --j---1--- -_1-- I I I I I I I I 1 I I I I 9-7/8" Hole I I I I I I I I I I I I I I ---1~---I---r--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 I I I I --j--r--r--r-- I I I I 1 I I I 1 I I I 1 I I I I I I I I I I I I I I I I I I I I I I I --r--r--r--r-- I I I I I I I I I I I I I I 1 I 1 1 I I I I I I I I I I I I I I I I I I --7 -___j--j-- I I I I I I I I I I I 1 I I 1 I I 1 I I I I I I I 1 I I I I -- --~--~---1-- I I 1 I I I I I I I I I I I 1 I I t I I I 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 I I 1 I 1 I i I I I i I I 1 I I I I 1 I i I I I I I I I ---1 1 -1 1 -- I 1 I I I i I I I I I I I i I I i I I I 1 I I I I 1 I I I i I I I I I I --r--r--r--7-- I I I I I I I I I i I I I 1 I I I I I I I I I I I I I I I I I I I I I I --~--~---1---r-- I I I 1 I I I 1 I I I i I I I i I I I I I 1 I I I I I I I I I I I I I I - -r--r--r--r-- I I I I I I I I I I I I 1 I I I 1 1 I I I 1 I I I 1 I I I I I I I I I I T--7---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 I I I I I i I I I I ---1---1---I- 1 I I 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 1 I I I I I --r--r--r--T-- I I 1 I I I 1 I I I I I I I I i I I I 1 I I I I I I I I I I I I I I I I --~--~---1---1--- I I I I I I 1 I I I 1 I I I I I I I I I 1 I I I I I I I 1 I I I I I I I - r--r--r--r-- 1 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 I I I I I I -r--~--~--~-- I I I I I I 1 I I I i I I I I I I I I I I 11 I I I 1 I i I I I 1 I I I ---1---r--1---1--- I 1 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 1 I 1 I 1 --r--r--r--Y-- 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 1 I i I 1 I R ---I--~---I---1- I I I I I I I I I I I I 1 I I I I I I I I I Run E-Line Ci Sampling -{~-- I I I I I I I I I I I I I I I 1 I 1 1 I I 1 1 I I --7--Y_-1--7-- I I I I I I I 1 I 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 I i I i I I I 0 5 10 15 20 25 Rig Daks Oliktok Point I-1 Days -v- Dept Curve.xls 9/25/2006 • • 11 /38 Offset Wells (Frac Gradient) 0 1000 2000 3000 L r+ w~ W 4000 W L H 5000 6000 7000 8000 10 EMW (ppg) I I I I II II II ~ I I I ~ I ~ ~ ~ ~ ~ I I I I I ~ I ~ II ~ II I I I I I I I I I I I I I I ~ ~ I I ~ II ~ Note: the offset wells in this block -'--'-J-1- -'--'--'-~- -+-'--'--'- -'--~-'--~ I _ ' '• ' ;were all drilled throu h the Kin ak I I I I I 1 I 1 I• I I I g g I I I ~ -I__ I-J-1- -~-I--1-1- -L«--I-~- -~-L- --I - 1I I I I 1. I I I I I I I I& Sag River with < 11 1# mud I I I I 1 .I I I I• I I . . I _ ~. I I I I II I I I I . I I I I• I I I •I I 1' 1 I I I I I i I I I II I I I I I I i I I I I I I ~ i I I I I I I - - - - ~ - T - - r - r -I i ~ - - r - r -I ~ ~ - - r - r - r -I - - r - r - . - r - - ~ - r - r - r - - r ~ - r - r - - -I - r - ~ - r - I I I I I _I___ -II--- 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 ____ __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 ti • I I I I 1 I I I I I I I I I I _ I_ J _ J _ 1 _ _ L _ I _ _I _ 1 ! _ L _ I_ _ I _ J _ _ L _ L _ I_ _I _ _ 1 _ L _ L _ I_ _ _ J _ 1 _ L _ L _ _ J _ 1 _ 1 _ L _ _ _I _ J _ 1 _ L _ I I I I 1 I I• I I I I I I I I I 1 I I I I 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 1 I I I I I I I I I I I I I I I I I I t I I I I I t • I I I I I I I I I 1 I I I I I I 1 I I I I I I I I • I I I I • I I I I 1 I I 1 I I I I I I I I I I ---- -r- I C I I I I I _ I_ NW Miln I _____I___ ~ I I - -I--I-r- I I I I I I I I e Point. #1 -__I_____ I I I I r-I--I-7- I~ I I I I I _ * _ ~ _ 1 _ , _ ,• , I • I I I _'I _I__I_ I ~ I I -r~r-r-I- I •I I I I ~ I I _ r _ ~ _ ~ _I _ , ~, - I - ~ - I l y I_ I I I• I -t-r-r-r- 1 I I I I I I I _ T _ r _ ~ _ I_ I I I I _I___-_I-.- Thetis Is # -~-r-r-r- I I I I I I I I _ , _ T _ r _ ~ _ I I - ' -'- - _--I 1 1 I I 1 1 -ti-~-r-r- I I I I I I I I _ , _ ~ _ 7 _ r _ - -' - ' - ' ' I I I-~- I I I I --I-7-r-r- I I I I I I I I _ _I _ _ _ T _ r _ I - -' - -I I I I I-~-I- 1 I I I I I I I I 1 I I I I I I . I I I I I I I I I I I I I 1 _I__I_~_}_ 1 I I I _r _1_~_y_ I I C I I f_I_~_i_ I I I N _}_f_,__,~ I I I I _.~_f_F_,__ I I I 1 _.{_}_f_F_ I I I I _~_~_}_F_ 1 I I I __I_~_~_t_ I I I I I -I-__,_T_ I I I I I I I I 1 ', I I i '. I I I I I 1 I I I 1 I 1 -r'-I-1-1- 1 I 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 r-I--I•,_ I I I~ 1 I I I •I i '. I- •fL. i ~. I r• I I I I I I I I• I 1 I I -r-r-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 LT-r-r-I-- ~ 1 I I I wj I I I_ i. 1 I I 1• 1 I I I 1 1 I I I I I I I I -T-T-r'r' I I I I I I I 1 I I I I I I I I I I I I I I I I I 1 I -1-T-T-r- 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_1_T_i'_ I I I I I I I I I I 1 I I I I I I I I I I _I__I_J_1_ I I I I I I I I NW Milne Point. #1 Jones Island #1 I• I _J_ I I I I I _L_L_I___ ~, I I I I I 1 + I I ,• , _1_,_.L_I__ , I • I I I I I I I I I _~_1_L~_OliktokStat I I I I I I I I I I I I e#1 ~-1_,__ I I I I I _ _ _I _ y _ ~ _ _ r _ I _ _ _ _ _ _ _ _ I _ _ _ _ _I _ I • I _ + _ * _ ,!_ I_ _ I I I I _ y _ r _ r _ I_ _ _ y _ y _ t _ r _ I _ _ _ y _ + _ r _ I I I I y ~ I I. I I ~ I I I I Nikaitchuq #2 ; I I I I I , r~-T- -r Nikaitchuq #1 MPE 13 - , -r-r-r ~ I - -T-r t I ,• • ~ ~ ~ I I ~-~-r-r- --I-~-T-r- , - I ~ ~ ~ ~ ~ ~ ~ ~ ~ I I I _'__I_J_1_ I _L _I__I_J_ I I L_I__I_J_ _ + I I _y_I__I_ I I I I _1_L_L_I__ ~ 1 I I I ~.1_1_L_I__ I I 1 I _J_1_1_L_ I I I __I_J_1_L_ I I I I I I I I I I I• I I 1 I I I . I 1 I 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 y I I I I I I I I I I ----J-1- -L-I-~-~- 6-I--I-'1- - -L~--I_ _1_~-~-'-- -'•+-~-~- -~-;-1-~- --'-'~-1-1- I I I I 1 I I I I I I I • I 1 I I I I •I I I I I I I I 1 I I I I I 1 I I I I I I I N I I I I I I • I I I I I I I I I I -r-I-7-7- -r-1-ti--r- r-r-I--1- - -r-ly-I- -Y-r-r-r- -y-4-r-r- -y-~-r-r- --I-y-r-r- I I 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 I I I I I M 1 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 1 I I I I I I I ~ I I ___I__I___ I I I I I I I I ___I__1__- I I 1 I I I I I __f _I__I_ I I I I I 1 I• _ ___I _I ~ 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 I I I _I__I_J_1_ I I I I _L _I_J_1_ I I I I L_1__I_J_ I I I I I I I _L _I__1_ - I I I I I I I _1_L_L _I__ I I I I I _J_1_L_L+ I I I I• _ Thetis Is. _J_1_L_ #1 I I I I I I I I I I I I 1 I I I 1 • I I I I I I I I I I I I-~-+_ -I'-- I -~-'- '-~- ' -~-'-~ 1 2 ~--~- 3 ~~-~-~-~-- -~-±-~-I •~I-Oliktok State#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 I I 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 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 -j -I--I- ~- I I I I ~ -~ -I--I- I I I I - -r -,--,- I I I -T~_~ -,__ I ~ I I _ ~_7-r -~ - I I I I --,-~-I -~ - I 1• I I --- ----- I -1 I I I 1 I I -'--'_-'-'- I I II II I I -'--'_-'-'- I I I I I I I I '-'--'--I_ I I I I I I I I _ 11 1 ___' _I_ I I I I' l l ___~__'__ I I ~ I I I I I _________ I I ~ I I I• I I __I__~~ ___ I I I ~ 1 1 1 1 __I__'_____ I 1 I I ' _I_J_1_ _L _I__I_1_ I I I I L_I__I_J_ '. '. _ _L _I__I_ I _1_L_L_I__ I I I I _~_L_L_L_ I I ! i _J_1_L _L_ I I I __I_J_1_L_ ~ I '. '. 11 12 13 14 15 16 17 18 Frac & Temp Gradients.xls 9/22/2006 • ~ 12/38 Offset Wells (Temperature Gradient) 0 1000 2000 3000 ~ 4000 Q d V 5000 d F- 6000 7000 8000 9000 10000 40 III ---I-~- ~ I III - -- - ~ I III - -~-- ~ I II III III -*-~-I--- -~- ----i-*- I ~ I I I III -~--I-~- I I I I II - -~--- IF I III - -~-I- I I I I I -*- -~ I ~ I I _I_J_ I I I I I I I I I I I _L _I_J_ I I I 1 I I I I I I I I _L_L _I_ I I I I 1 I I I I I I I I I _1_L _I___J_1_L_ _I_J_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 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 _L _1__I_ I I I I I I I I I I I I _L_L _I_ I I I I I I I I i I I I _1_L_L I I I I I I I I I I I - I - -I - 1 - I I 1 - r - I - y - 1 I I - r - 1- - I - I I I - + - r - I- - I I I - -1 - + - r - I I I -I - * - t - I I I - I- -I - 1 - I I I - I - -I - I I I - t - r - I - I I I - * - r - r I I I I I I I I I I I I I I 1 ° I - ---f- -~- - - - -~- - -;-~- - -J-1-~ Temperature Gradient+2 /100ft -~ I I I I 1 I I I ~y I~1_ A^ I__I_-I- I I I I I I I I 1 _I_I _1__ I I I _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 I I I I I I I I I I I I I I I I ~ I 1 I I I 1 I I I I I I I I I 1 I I I I I I I I I 1 I I I I 1 I I I I I I I I I 1 I I I I I I ----T- -r •~- -r-r-1- -T-r-r- -~-T-r- --1-~-r- -r-I-T- -r-I-~- -r-r-I- -~-r-r I I 11 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_ _~ I_~` _L_ti _I_ _1_ _~_ _J-i_L_ __1-J_1_ _I_~_J- _~_I_~- _Y_~_I- -~_~_ti I I I I I I~ I I I I I I I I I 1 I I I I 1 I I I I I I I I I _I__I_1_ _L I_J_ _L_L _I_ _1_L _I__ _J_1_L_ __I_J_1_ _I__I_J_ _L _I_J_ _L_L _I_ _1_L_L I I I I I ~ I I I I I I 1 I I I I I I I I I I 1 I I I I I ' ~ Th ti I #1 ' ' I I ~ I I I I e s s. I I I I I I I I I 1 I I I I I I I I I I I V I I I I I I I I I I I I I I I I I I -I--I-T- -r r-t- -r-I--I- -T-r-r--r-T-r- --I-~-r- -I--I-T- -r-r-I- -r-r-r -T-r-r I i 1 ~~ I I 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 I I I I I I 1 I I I I I I _ I _ _I _ 1 _ _ L I _ J _ _ L _ L _ I _ 1 _ N ~ kai tch uq #1 ~ /~ _I _ J _ 1 _ _ I_ _I _ J _ _ L _ I _ J _ _ L _ L _ I _ _ 1 _ L _ L I I I I I I 1 I 1 I 1 I I I I I I ~ ~ ~ ~ I I 1 I I I I I I I I I I I I I I f i I I 1 I I I I I 1 I I I 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 I I 1 I I I« I I I I I I 1 I I I I I I 1 I I I I r ----T- I -r I-~- -r-r-r -T-»-r- -~-r-r- --I-~-r- -r-I-~- -r-I--I- -r-r-I- -- --r- I r I 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 I I I I I I I I I I I _I___1_ _L I_J- _L-L-I- -1-L-L _J_1_L_ __I_J-1- _I-J_a- -L -I_J_ _~_L _I- -1_L_L I I I I I I I I I I I 1 I 1 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 I I I I 1 1 1 I I 1 I I I 1 I I I I I 1 I I I I 1 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 I I I I I I« I I I I I I I I I I I 1 I I I I - I--I-r- -r I--I- -r-r-I- -~-r-r --II--»-r_ __~- ~-r- -r-I-~- -r-r-I- -r_-_~_ _~_r__ I I I - I - -I - Y - I - r I I I - -I - I I I - r - r - I - I I I - r - r - r I I ~~ - r - T - ~ I I - -I - ~ - r - I I I - I- -I - 7 - I I I - r - r -I - I I - r - r - I - I I I - -r - r - r 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- I - ~ - - ~ - I- -1- - 1 - ~ - I- - ~ - ; - ~ - -I - ~ - 1 - - I- -I - ~ - - ~ - I- -I - - + - ~ - I - - '+ - 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 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 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_ _r___I_ ___r__ _-_____ __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 I I I I I I I I -I--I'T- -r I_1_ -r-r-1- -T-r-r -1-T-r- ~ --I-T- ~ -I--I-~- -r-I--I- -r-r-I- -T-r-r I 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-~O ooguruk# I I 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 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 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 I I ------- I I I ------- I I I - - - - - --- - I ~ ~ ~ I I • - _ - _ - I 1 I ------ I I I I ___-~- I -r I I I-~- I I I -r-r-r I I I -T-r-r I I I -~-T-r- I I I -I-~'r- I I 11 I I I -r -rim -r -I--I- I I I -r-r-r I I I -T-r-r I I I 1 I I I I I I I I I 1• I I I I I I I -I--I-*- -r -ti- -r-r-I- -+-1•-I- -y-+-r- --I-1-+- -r-I-*- -r-I-~- -r-r-I- -+-r-r 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 I I I I I 1 I I I I I I I I I I I I I C 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 M I _ __ ___ _-_ _ _ I I I _ _____ I I I ______ I I I I I I I I F I I -~--I -~- -~- ;--~- -~-;--~- -~-~-~- -~-T-;- -Th --I -' etisls #1 ~-~~y -~-~- ~ ~ I I I I I . I I I I I I I I I I 1 1 I I I I I I I• I I I I I I -I--I-7- -r I--1- -r-r-r -7-r-r -y-t-r- --I-7-r- -r-I-7- - -r -I- r -r-r-r -*-r-r I I I I 1 I I I I I I I I I I I I I I I I I I ~ I • Nikai tchuq #1 I I I J_1_ I I I _L I I I I_J_ I I I I I _L _I__I_ I 1 I I I _1_L _I_ I I I I I I _J_1_L_ 1 I I 1 1 I I I I _J_J_1_ _I_!_J_ 1 1 I I I I I I I~ _I__I__I_ _1 ~1 I I I I ~ _1_L_I_ I I I -'- ' - - ;- -; -- - -r-; - - -;-r-; - ;-;-r- -'- -' - Ni -- - ;-;- '`- kaitchuq #2 ~ - - ' -,-r I , , r , ~ ! , ~ I I ~ --- - -_- - --- -I--~-,- I - -I--I-t- - -I- ~ -,-r-~ 60 80 100 120 140 160 180 200 220 240 Frac & Temp Gradients.xls 9/22/2006 • • 13/38 ~~1 Oliktok Point- KerrNtGee Injector' #1 PB1 DIR / LWD EPTH-RKB(40' HOLE CASING MUD INFO MWD FORM MD TVD SIZE SPECS Cement Info INFO 16" 651b/ft, L-80 80' 80 bt ~ N/A ID. = 15.25" N/A MWD/GFURES c~1<I ~ ~ ~ ;.:a« Surface Csa IIFR/Cas ,:~~ 10-3/4" Lead Slurry KOP:200' ~~a 45.5 Ibs/ft 312 Bbls, a23 sx Wellbore Stability DLS 2.5°1100' ~ << k ~ L-80, BTC-M 10.7 ppg Lost Circulation 400' ~ t ID.=9.95" 4.15 R3/sx Hole Cleaning '~ C S i DLS 3.25°/100' ~,~ Int. Yield 5210 psi asing ect ons Sail Angles: 59° .a.~"~. Collapse 2480 psi Casing Wear ,. ~~: Float Equipment rail slum Base Permafrost 2,172' 1.815' `<d>~ia SN3':~i 1 ea Fbat Shoe 41 Bbls, 209 sx Top of Tail Cement DLS 4°/100' 1 ea Float Collar 15.8 ppg Centralizers 1.15 ft3/sx Est. Plug Top 2,400' Sail Angles: 73° 9.0-10.0 PP9 10-3/4" Casing Point 2.600' 1,997' 13-1/2" 68° F Water Based Mud Quad-Combo "' '' ' ' `' CementPlug rr~.r r ~ ,, , ,,~ :: +v41~rl~l~li~:.: IIFR/Cas . "' ~ 78 Bbls, 387 sx .. .. 15.8 PP9 Inter. Casing 1,15 ft3/sx Wellbore Stability Est. Plug Btm 3,100' 7-5l8" Lost Circulation 33.7 Ibs/ft 9.0-10.0 ppg Hole Cleaning L-80, BTC-M Torque 8 Drag lo. =6.7s° Casing Sections Int. Yield 7900 psi Collapse 6560 psi E P T 7 936' Cement Plug st. lug op , 118 Bbls, 584 sx ' ' ' 15.8 ppg 73° >: >: :: : :. 1.15 ft3/sx _P~~ag>> Schrader Bluff OA 8,736' 3,848' MD7IRCI Sampling 8,936' 3,905' 9-7/8" 104° F Water Based Mud Oliktok Point I-1 Well Bores.xls 9/25/2006 Rig RKB = 40 ft - Surf I ~ / /11 16", 65# 14/38 13-1/2" Hole - 500 Oliktok Point I-1 10-3/4", 45.5, L-80, BTC (Schrader Bluff OA Pilot Hole) ~ 2600' MD (2730' TVD) - 1000' ~ ~ LOT = 12ppg EMW D ~ ~ ~ ~ ~ ~ ~ ~ ` ~ 9-7/8" Hole - 1500' ~ `` `~ at ± 70° ~ ` ~ ` ` ` ` ` ~ ` - 2000' ~ ` `~ ~ ` ` ` ~ ` ~ ` ~ ` - 2500' ~ ` ` ~ ~ ~ ~ ~ ~ ~ ` `~ 9-7/8" Hole - 3000' `~ `~ 8,936' MD `~ ~. 3,905' TVD ~ ~ - 3500' ` ` ~ ~ ~ ~ Schrader Bluff OA ~ ` - 4000' ` ` Oliktok Point I-1 Drilling.PPT • - 4500' W. Quay: 8/8/2006 1 18 c_ 0 0 ~ 22 t n N m 27 v r ~ 31 F- TARGET DETAILS ND +N/-S +E/-W Northing Fasting OliktokPoint#1Rev2 3848.00 3105.80 6045.34 6039700.24 522798.28 Circle (Radius: 250.00) 15/38 WELL DETALS: Oliktok Pant #1 PB1 WP05 Well C°ordinates 0.00 Start Dir 2.5°/100' :200' MD, 200'TVD Northing ASP Fasting ASP L~ttirde Longitude 6036581.12 516760.57 70°30'40.06N 149°51'46.249W Start Dir 3.25°/100' :400' MD, 399.75'TVD V.Section Origin Origin Starting Angle +NI-S +EtiW From TVD 64.80° 0.00 0.00 0.00 CASMlG DETA~S No TVD MD Name Size 1 1997.72 2600.00 10314" 10-314 2 3905.61 8936.99 T' 7 End Dir :2047.58' MD, 1750' TVD _- _______._.__________...____ __Start Dir 4°/100' :2239.22' MD, 1850'ND BPRF _ 10 3/4" ~ End Dir :2807.06' MD, 1999.77' ND Start Dir 3°/100' :3857.06' MD, 2359.81'TVD End Dir :3858.51' MD, 2360.22' TVD Ugnu -- M-Sand N Sand OA °r Start Dir 3°/100' :8520.38' MD, 3126.78'TVD Oll kt~P nt#7P -- efu. _ --- ------------------------------------- End Dir :8738.99' MD, 3848' ND _ Oliktok Point #1 Rev 2 Total Depth :8936.99' MD, 3905.61' TVD ' ~ - ' 7" SECTION DETAILS Sperry C'3ri11ng Services MD Inc Azi ND +N/S +E/-W DLeg TFace VSec Target 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 200.00 0.00 0.00 2oo.ao o.oo o.oo o.oo o.oo o.oo 400.00 5.00 72.37 399.75 2.64 8.31 2.50 72.37 8.65 2047.58 58.55 72.37 1750.00 255.94 805.35 3.25 0.00 837.68 2239.22 58.55 72.37 1850.00 305.45 961.15 0.00 0.00 999.74 2607.06 73.26 72.37 1999.77 406.87 1280.29 4.00 0.00 1331.68 3857.06 73.26 72.37 2359.81 769.41 2421.09 0.00 0.00 2518.28 3858.51 73.26 72.32 2360.22 769.83 2422.42 3.00 -85.74 2519.66 6520.39 73.26 72.32 3126.78 1543.80 4851.19 0.00 0.00 5046.83 8736.99 73.26 2.47 3848.00 3105.80 6045.34 3.00 -101.37 6792.36 Oliktak Point #1 Rev 8936.99 73.26 2.47 3905.61 3297.14 6053.59 0.00 0.00 6881.29 -900 -450 0 450 800 1350 1800 2250 2700 3150 3600 4050 4500 4950 5400 5850 6300 6750 7200 76501 Vertical Section at 64.80° (900 ff/in) • TARGET DETAILS ND +N/S +El-W Nonhing Easting Oliktok Point #1 Rev 2 3848.00 3105.80 6045.34 6039700.24 522798.28 Circle (Radius: 250.00) 16/38 Sperry Drilling Services SECTION DETAILS MD Inc Azi ND +NI-S +E/-W DLeg TFace VSec Target 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 200.00 0.00 0.00 200.00 0.00 0.00 0.00 0.00 0.00 400.00 5.00 72.37 399.75 2.64 8.31 2.50 72.37 8.65 2047.58 56.55 72.37 1750.00 255.94 805.35 3.25 0.00 837.68 2239.22 58.55 72.37 1850.00 305.45 961.15 0.00 0.00 999.74 2607.06 73.26 72.37 1999.77 406.87 1280.29 4.00 0.00 1331.68 3857.06 73.26 72.37 2359.61 769.41 2421.09 0.00 0.00 2518.28 3858.51 73.26 72.32 2360.22 769.83 2422.42 3.00 -85.74 2519.66 6520.39 73.26 72.32 3126.78 1543.80 4851.19 0.00 0.00 5046.83 8736.99 73.26 2.47 3848.00 3105.80 6045.34 3.00 -101.37 6792.36 Oliktok Point #1 Rev 2 8936.99 73.26 2.47 3905.61 3297.14 6053.59 0.00 0.00 6881.29 Total Depth :8936.99' AAD, 3905.61' TVD 7„ Oliktok Point #1 Rev 2 End Dir :8736.99' NID, 3848' TVD conf. 2400 2000 0 ~ ,600 0 1200 z s ~ soo 0 ~P~S 1 pg1 p\~K<OKP°~r<# /- - - - - -End Dir :3858.51' MD, 2360.22' TVD Start Dir 3°/100' :3857.06' iub, 2359.81'TVD 103/4" ~° End Dir :2607.06' MD, 1999.77' TVD - ~ _ Start Dir 4°1100' :2239.22' MD, 1850TVD End Dir `2047.58' iiAD, 1750' TVD Start Dir 3.25°/100' :400' Nom, 399.75'TVD Start Dir 2.5°/100' :200' ND, 200'TVD FORMATION TOP DETAILS No. NDPath MDPath Forrnation 1 1815.00 2172.15 BPRF 2 3213.00 6806.81 Ugnu 3 3341.00 7200.06 MSand 4 3651.00 8108.86 SBLF 5 3698.00 8251.26 N Sand 6 3848.00 8736.99 - OA ~1J KerrNtGee -400 0 400 800 1200 1600 2000 2400 2800 3200 3600 4000 West(-)/East(+) (800 ft/in) Start Dir 3°/100' :6520.39' ~, 3126.78'ND CASING DETAILS No TVD MD Name Size 1 1997.72 2600.00 10 3/4" 10-3/4 2 3905.61 8936.99 7" 7 WELL DETAILS: Oliktok Point #1 PB1 WP05 WeN Coordinates 0.00 Northing ASP Easting ASP Latittude Longitude 6036581.12 516760.57 70°30'40.06N 149°51'46.249W V.Section Origin Origin Starting Angle +N/-S +E/-W From TVD 64.80° 0.00 0.00 0.00 • Kerr McGee OLIKTOK POINT OLIKTOK POINT Oliktok Point #1 Oliktok Point #1 PB1 11 • Plan: Oliktok Point #1 11 PB1 WP05 Proposal Report 13 September, 2006 17/38 • Database:. EDM_14_B48 Company: Kerr McGee Project: OLIKTOK POINT Site: OLIKTOK POINT Well: Oliktok Point #1 Walibore: Oliktok Point #1 P61 11 Design: Oliktok Point#1 11 PB1 VVPO5 Halliburton Company Planning Report -Geographic Local Co-ordinate Reference: TVD Reference: MD Reference: North Reference: Survey Calculation Method: • Site OLIKTOK POINT SITE @ 40.OOft (Original Site Elev', SITE @ 40.OOft (Original Site Elev) True Minimum Curvature 18/38 Project OLIKTOK POINT Map System: US State Plane 1927 (Exact solution) System Datum: Mean Sea Level Geo Datum: NAD 1927 (NADCON CONUS) Map Zone: Alaska Zone 04 Using geodetic scale factor Well Oliktok Point #1 Well Position +N/S 0.00 k Northing: 6,036,581.12 ft ~ Latitude: 70° 30' 40.060" N +E/-W 0.00 ft Easting: 516,760.57 ft ' Longitude: 149° 51' 46.249" W Position Uncertainty 0.00 ft Wellhead Elevation: ft Ground Level: 0.00 ft ', Wellbore Oliktok Point #1 P61 11 Magnetics Model Name Sample Date Declination Dip Angte Field Strength bggm2006 8/10/2006 23.77 80.93 57,609 Design O6ktok Point #1 11 P81 WPO5 j Audit Notes: Version: 5 Phase: PLAN Tie On Depth: 0.00 Vertical Section: Depth From (TVD) +N/-S +E/-W Direction (ft) Ift) lft) (°) 0.00 0.00 0.00 64.80 Plan Summary Measured Vertical Dogleg Build Turn Depth Inclination Azimuth Depth +N/-S +E/-W Rate Rate Rate TFO (ft) (°) (°) (ft) (ft) {ft) (°I100ft) (°/100ft) (°I100ft) (°) 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 200.00 0.00 0.00 200.00 0.00 0.00 0.00 0.00 0.00 0.00 400.00 5.00 72.37 399.75 2.64 8.31 2.50 2.50 0.00 72.37 2,047.58 58.55 72.37 1,750.00 255.94 805.35 3.25 3.25 0.00 0.00 2,239.22 58.55 72.37 1,850.00 305.45 961.15 0.00 0.00 0.00 0.00 2,607.06 73.26 72.37 1,999.77 406.87 1,280.29 4.00 4.00 0.00 0.00 3,857.06 73.26 72.37 2,359.81 769.41 2,421.09 0.00 0.00 0.00 0.00 3,858.51 73.26 72.32 2,360.22 769.83 2,422.42 3.00 0.22 -3.12 -85.74 6,520.39 73.26 72.32 3,126.78 1,543.80 4,851.19 0.00 0.00 0.00 0.00 8,736.99 73.26 2.47 3,848.00 3,105.80 6,045.34 3.00 0.00 -3.15 -101.37 8,936.99 73.26 2.47 3,905.61 3,297.14 6,053.59 0.00 0.00 0.00 0.00 9/13/2006 5:35:53PM Page 2 of 6 COMPASS 2003.11 Build 48 Halliburton Company • Planning Report -Geographic 19/38 Database: EDM 14 648 Local Co-ordinate Reference: Site OLIKTOK POINT Company: Kerr McGee TVD Reference: SITE @ 40.OOft (Original Site Elev) Project: OLIKTOK POINT MD Reference: SITE @ 40.OOft (Original Site Elev) Site: OLIKTOK POINT North Reference: True Well: Oliktok Point #1 Survey Calculation Method: Minimum Curvature Wellbore: Oliktok Point #1 PB1 11 Design: Oliktok Point #1 11 PB1 WP05 Planned Survey Oliktok Point #1 11 P61 WPOS Map Map MD In clination Azimuth TVD SSTVD +N/-S +EI-W Northing Easting pLSEV Vert Section (ftl {°) l°) (ft) (ft) {ft) (ft) (ft) {ft) (°/100ft) (~ 0.00 0.00 0.00 0.00 -40.00 0.00 0.00 6,036,581.12 516,760.57 0.00 0.00 100.00 0.00 0.00 100.00 60.00 0.00 0.00 6,036,581.12 516,760.57 0.00 0.00 200.00 0.00 0.00 200.00 160.00 0.00 0.00 6,036,581.12 516,760.57 0.00 0.00 Start Dir 2.5°/100' :200' M D, 200'TVD 300.00 2.50 72.37 299.97 259.97 0.66 2.08 6,036,581.79 516,762.65 2.50 2.16 400.00 5.00 72.37 399.75 359.75 2.64 8.31 6,036,583.78 516,768.87 2.50 8.65 Start Dir 3.25°/1 00' :400' MD, 399.75'TVD 500.00 8.25 72.37 499.07 459.07 6.14 19.31 6,036,587.30 516,779.86 3.25 20.08 600.00 11.50 72.37 597.57 557.57 11.33 35.65 6,036,592.53 516,796.19 3.25 37.08 700.00 14.75 72.37 694.95 654.95 18.21 57.29 6,036,599.45 516,817.81 3.25 59.59 800.00 18.00 72.37 790.88 750.88 26.74 84.15 6,036,608.05 516,844.65 3.25 87.53 900.00 21.25 72.37 885.05 845.05 36.91 116.15 6,036,618.29 516,876.63 3.25 120.82 1,000.00 24.50 72.37 977.18 937.18 48.69 153.20 6,036,630.15 516,913.64 3.25 159.35 1,100.00 27.75 72.37 1,066.95 1,026.95 62.02 195.16 6,036,643.57 516,955.57 3.25 202.99 1,200.00 31.00 72.37 1,154.08 1,114.08 76.87 241.90 6,036,658.53 517,002.27 3.25 251.61 1,300.00 34.25 72.37 1,238.29 1,198.29 93.20 293.27 6,036,674.97 517,053.60 3.25 305.05 1,400.00 37.50 72.37 1,319.31 1:279.31 110.95 349.11 6,036,692.84 517,109.40 3.25 363.13 1,500.00 40.75 72.37 1,396.88 1,356.88 130.06 409.24 6,036,712.09 517,169.48 3.25 425.67 1,600.00 44.00 72.37 1,470.74 1,430.74 150.47 473.47 6,036,732.64 517,233.65 3.25 492.47 1,700.00 47.25 72.37 1,540.67 1,500.67 172.11 541.58 6,036,754.44 517,301.71 3.25 563.32 1,800.00 50.50 72.37 1,606.43 1,566.43 194.92 613.36 6,036,777.41 517,373.43 3.25 637.98 1,900.00 53.75 72.37 1,667.81 1,627.81 218.83 688.58 6,036,801.48 517,448.58 3.25 716.22 2,000.00 57.00 72.37 1,724.63 1,684.63 243.75 766.99 6,036,826.57 517,526.93 3.25 797.78 2,047.58 58.55 72.37 1,750.00 1,710.00 255.94 805.35 6,036,838.85 517,565.26 3.25 837.68 End Dir :2047. 58' MD, 1750' TVD 2,100.00 58.55 72.37 1,777.35 1,737.35 269.48 847.97 6,036,852.49 517,607.84 0.00 882.01 2,172.15 58.55 72.37 1,815.00 1,775.00 288.12 906.62 6,036,871.26 517,666.45 0.00 943.02 BPRF 2,200.00 58.55 72.37 1,829.53 1,789.53 295.32 929.27 6,036,878.50 517,689.07 0.00 966.57 2,239.22 58.55 72.37 1,850.00 1,810.00 305.45 961.15 6,036,888.71 517,720.94 0.00 999.74 Start Dir 4°/100' :2239.22' MD, 1850'TVD 2,300.00 60.98 72.37 1,880.60 1,840.60 321.35 1,011.19 6,036,904.72 517,770.93 4.00 1,051.78 2,400.00 64.98 72.37 1,926.03 1,886.03 348.33 1,096.07 6,036,931.88 517,855.75 4.00 1,140.07 2,500.00 68.98 72.37 1,965.13 1,925.13 376.20 1,183.77 6,036,959.95 517,943.37 4.00 1,231.29 2,600.00 72.98 72.37 1,997.72 1,957.72 404.82 1,273.85 6,036,988.78 518,033.37 4.00 1,324.98 10 3/4" 2,607.06 73.26 72.37 1,999.77 1,959.77 406.87 1,280.29 6,036,990.84 518,039.81 4.00 1,331.68 End Dir :2607.06' MD, 1999.77' TVD 2,700.00 73.26 72.37 2,026.54 1,986.54 433.82 1,365.11 6,037,017.98 518,124.56 0.00 1,419.91 2,800.00 73.26 72.37 2,055.34 2,015.34 462.83 1,456.37 6,037,047.19 518,215.75 0.00 1,514.83 2,900.00 73.26 72.37 2,084.14 2,044.14 491.83 1,547.64 6,037,076.39 518,306.94 0.00 1,609.76 3,000.00 73.26 72.37 2,112.95 2,072.95 520.83 1,638.90 6,037,105.60 518,398.13 0.00 1,704.69 3,100.00 73.26 72.37 2,141.75 2,101.75 549.84 1,730.17 6,037,134.81 518,489.32 0.00 1,799.62 3,200.00 73.26 72.37 2,170.55 2,130.55 578.84 1,821.43 6,037,164.01 518,580.51 0.00 1,894.55 3,300.00 73.26 72.37 2,199.36 2,159.36 607.84 1,912.69 6,037,193.22 518,671.70 0.00 1,989.47 3,400.00 73.26 72.37 2,228.16 2,188.16 636.85 2,003.96 6,037,222.43 518,762.89 0.00 2,084.40 3,500.00 73.26 72.37 2,256.96 2,216.96 665.85 2,095.22 6,037,251.63 518,854.08 0.00 2,179.33 9/13/2006 5:35:53PM Page 3 of 6 COMPASS 2003.11 Build 48 • Hallibulrton Company Planning Report -Geographic 20/38 Database: EDM_14_648 Local Go-ordinate Reference: Site OLIKTOK POINT Company: Kerr McGee TVD Reference: SITE @ 40.OOft (Original Site Elev) Project: OL{KTOK POINT MD Reference:. SITE @ 40.OOft (Original Site Elev) Site: OLIKTOK POINT North Reference: True Well: Oliktok Point #1 Survey Calculation Method: Minimum Curvature Wellbore: Oliktok Point #1 P61 11 Design: Oliktok Point #1 11 PB1 WPOS Planned Survey Oliktok Point #1 11 P81 VUPOS Map Map MD Inclination Azimuth TVD SSTVD +Nt•S +E/-W Northing Fasting DLSEV Vert Section (ft1 (°) (°) (ft) Itt1 ttt) (ttj (tt1 (tt1 (°naottj (tt- 3,600.00 73.26 72.37 2,285.76 2,245.76 694.86 2,186.49 6,037,280.84 518,945.27 0.00 2,274.26 3,700.00 73.26 72.37 2,314.57 2,274.57 723.86 2,277.75 6,037,310.04 519,036.46 0.00 2,369.19 3,800.00 73.26 72.37 2,343.37 2,303.37 752.86 2,369.02 6,037,339.25 519,127.65 0.00 2,464.11 3,857.06 73.26 72.37 2,359.81 2,319.81 769.41 2,421.09 6,037,355.92 519,179.68 0.00 2,518.28 Start Dir 3°/100' :3857.06' MD, 2359.81' TVD 3,858.51 73.26 72.32 2,360.22 2,320.22 769.83 2,422.42 6,037,356.34 519,181.00 3.00 2,519.66 End Dir :3858,51' MD, 2360.22' TVD 3,900.00 73.26 72.32 2,372.17 2,332.17 781.90 2,460.27 6,037,368.49 519,218.83 0.00 2,559.05 4,000.00 73.26 72.32 2,400.97 2,360.97 810.97 2,551.52 6,037,397.77 519,309.99 0.00 2,653.99 4,100.00 73.26 72.32 2,429.77 2,389.77 840.05 2,642.76 6,037,427.04 519,401.16 0.00 2,748.93 4,200.00 73.26 72.32 2,458.56 2,418.56 869.12 2,734.00 6,037,456.32 519,492.33 0.00 2,843.87 4,300.00 73.26 72.32 2,487.36 2,447.36 898.20 2,82524 6,037,485.60 519,583.50 0.00 2,938.80 4,400.00 73.26 72.32 2,516.16 2,476.16 927.28 2,916.49 6,037,514.88 519,674.67 0.00 3,033.74 4,500.00 73.26 72.32 2,544.96 2,504.96 956.35 3,007.73 6,037,544.16 519,765.84 0.00 3,128.68 4,600.00 73.26 72.32 2,573.75 2,533.75 985.43 3,098.97 6,037,573.44 519,857.00 0.00 3,223.62 4,700.00 73.26 72.32 2,602.55 2,562.55 1,014.50 3,190.22 6,037,602.72 519,948.17 0.00 3,318.56 4,800.00 73.26 72.32 2,631.35 2,591.35 1,043.58 3,281.46 6,037,632.00 520,039.34 0.00 3,413.50 4,900.00 73.26 72.32 2,660.15 2,620.15 1,072.65 3,372.70 6,037,661.28 520,130.51 0.00 3,508.44 5,000.00 73.26 72.32 2,688.94 2,648.94 1,101.73 3,463.95 6,037,690.55 520,221.68 0.00 3,603.38 5,100.00 73.26 72.32 2,717.74 2,677.74 1,130.81 3,555.19 6,037,719.83 520,312.84 0.00 3,698.32 5,200.00 73.26 72.32 2,746.54 2,706.54 1,159.88 3,646.43 6,037,749.11 520,404.01 0.00 3,793.26 5,300.00 73.26 72.32 2,775.34 2,735.34 1,188.96 3,737.68 6,037,778.39 520,495.18 0.00 3,888.20 5,400.00 73.26 72.32 2,804.13 2,764.13 1,218.03 3,828.92 6,037,807.67 520,586.35 0.00 3,983.14 5,500.00 73.26 72.32 2,832.93 2,792.93 1,247.11 3,920.16 6,037,836.95 520,677.52 0.00 4,078.08 5,600.00 73.26 72.32 2,861.73 2,821.73 1,276.19 4,011.40 6,037,866.23 520,768.68 0.00 4,173.02 5,700.00 73.26 72.32 2,890.53 2,850.53 1,305.26 4,102.65 6,037,895.51 520,859.85 0.00 4,267.96 5,800.00 73.26 72.32 2,919.32 2,879.32 1,334.34 4,193.89 6,037,924.78 520,951.02 0.00 4,362.90 5,900.00 73.26 72.32 2,948.12 2,908.12 1,363.41 4,285.13 6,037,954.06 521,042.19 0.00 4,457.84 6,000.00 73.26 72.32 2,976.92 2,936.92 1,392.49 4,376.38 6,037,983.34 521,133.36 0.00 4,552.78 6,100.00 73.26 72.32 3,005.72 2,965.72 1,421.57 4,467.62 6,038,012.62 521,224.53 0.00 4,647.72 6,200.00 73.26 72.32 3,034.51 2,994.51 1,450.64 4,558.86 6,038,041.90 521,315.69 0.00 4,742.66 6,300.00 73.26 72.32 3,063.31 3,023.31 1,479.72 4,650.11 6,038,071.18 521,406.86 0.00 4,837.59 6,400.00 73.26 72.32 3,092.11 3,052.11 1,508.79 4,741.35 6,038,100.46 521,498.03 0.00 4,932.53 6,500.00 73.26 72.32 3,120.91 3,080.91 1,537.87 4,832.59 6,038,129.74 521,589.20 0.00 5,027.47 6,520.39 73.26 72.32 3,126.78 3,086.78 1,543.80 4,851.19 6,038,135.71 521,607.79 0.00 5,046.83 Start Dir 3°/100' :6520.39' MD, 3126.78'TVD 6,600.00 72.81 69.87 3,150.01 3,110.01 1,568.46 4,923.23 6,038,160.53 521,679.76 3.00 5,122.51 6,700.00 72.28 66.78 3,180.02 3,140.02 1,603.68 5,011.87 6,038,195.95 521,768.31 3.00 5,217.71 6,800.00 71.79 63.67 3,210.87 3,170.87 1,643.54 5,098.22 6,038,235.99 521,854.56 3.00 5,312.82 6,806.81 71.76 63.45 3,213.00 3,173.00 1,646.42 5,104.02 6,038,238.89 .521,860.35 3.01 5,31929 Ugnu 6,900.00 71.36 60.54 3,242.48 3,202.48 1,687.92 5,182.06 6,038,280.56 521,938.29 3.00 5,407.57 7,000.00 70.98 57.39 3,274.76 3,234.76 1,736.71 5,263.15 6,038,329.53 522,019.26 3.00 5,501.72 7,100.00 70.66 54.24 3,307.62 3,267.62 1,789.77 5,34127 6,038,382.76 522,097.25 3.00 5,594.99 7,200.00 70.38 51.07 3,340.98 3,300.98 1,846.95 5,416.20 6,038,440.11 522,172.05 3.00 5,687.14 M-Sand 7,300.00 70.17 47.89 3,374.74 3,334.74 1,908.11 5,487.74 6,038,501.41 522,243.45 3.00 5,777.91 7,400.00 70.01 44.70 3,408.81 3,368.81 1,973.06 5,555.70 6,038,566.51 522,311.25 3.00 5,867.06 9/13/2006 5:35:53PM Page 4 of 6 COMPASS 2003.11 Build 48 • Halliburton Company • Planning Report -Geographic 21138 Database: EDM 14 648 Local Co-ordinate Reference: Site OLIKTOK POINT Company: Kerr McGee TVD Reference: SITE @ 40.OOft (Original Site Elev) Project: OLIKTOK POINT MD Reference: SITE @ 40.OOft (Original Site Elev) Site: OLIKTOK POINT North Reference: True Well: Oliktok Point #1 Survey Calculation Method: Minimum Curvature Wellbore: Oliktok Point #1 P61 11 Design: Oliktok Point #1 11 P61 WPOS Planned Survey Oliktok Point #1 11 P61 VVPOS Map Map MD Inclination Azimuth 7VD SSTVD +NI-S +E!-W Northing Easting DLSEV Vert Section (ft) (°) (°) (ft) lft) (ft) (ft) (ft) (ft) (°l900ft) Ift) 7,500.00 69.90 41.51 3,443.09 3,403.09 2,041.64 5,619.89 6,038,635.23 522,375.28 3.00 5,954.33 7,600.00 69.86 38.32 3,477.49 3,437.49 2,113.65 5,680.12 6,038,707.37 522,435.34 3.00 6,039.49 7,700.00 69.87 35.12 3,511.93 3,471.93 2,188.90 5,736.25 6,038,782.74 522,491.29 3.00 6,122.31 7,800.00 69.94 31.93 3,546.29 3,506.29 2,267.18 5,786.10 6,038,861.12 522,542.96 3.00 6,202.56 7,900.00 70.07 28.74 3,580.49 3,540.49 2,348.27 5,835.55 6,038,942.32 522,590.22 3.00 6,280.02 8,000.00 70.25 25.55 3,614.44 3,574.44 2,431.96 5,878.45 6,039,026.10 522,632.94 3.00 6,354.47 8,100.00 70.49 22.38 3,648.04 3,608.04 2,518.02 5,916.70 6,039,112.23 522,670.99 3.00 6,425.72 8,108.86 70.51 22.10 3,651.00 3,611.00 2,525.75 5,919.87 6,039,119.97 522,674.13 3.01 6,431.87 SBLF 8,200.00 70.79 19.21 3,681.20 3,641.20 2,606.21 5,950.19 6,039,200.48 522,70427 3.00 6,493.57 8,251.26 70.96 17.60 3,698.00 3,658.00 2,652.15 5,965.48 6,039,246.46 522,719.46 3.00 6,526.96 N Sand 8,300.00 71.13 16.06 3,713.83 3,673.83 2,696.28 5,978.83 6,039,290.61 522,732.70 3.00 6,557.83 8,400.00 71.54 12.92 3,745.84 3,705.84 2,787.99 6,002.53 6,039,382.37 522,756.19 3.00 6,618.32 8,500.00 71.99 9.80 3,777.14 3,737.14 2,881.09 6,021.23 6,039,475.51 522,774.69 3.00 6,674.88 8,600.00 72.49 6.70 3,807.65 3,767.65 2,975.33 6,034.89 6,039,569.76 522,788.13 3.00 6,727.36 8,700.00 73.04 3.61 3,837.28 3,797.28 3,070.44 6,043.46 6,039,664.89 522,796.48 3.00 6,775.61 8,736.99 73.26 2.47 3,848.00 3,808.00 3,105.80 6,045.34 6,039,700.24 522,798.28 3.00 6,792.36 End Dir :8736.99' MD, 3848' TVD - OA - Oliktok Poi nt #1 Rev 2 8,800.00 73.26 2.47 3,866.15 3,826.15 3,166.08 6,047.94 6,039,760.52 522,800.74 0.00 6,820.38 8,900.00 73.26 2.47 3,894.95 3,854.95 3,261.75 6,052.06 6,039,856.19 522.,804.65 0.00 6,864.85 8,936.62 73.26 2.47 3,905.50 3,865.50 3,296.79 6,053.57 6,039,891.23 522,806.09 0.00 6,881.13 Total Depth :89 36.99' MD , 3905.61' TVD • 8,936.99 73.26 2.47 3,905.61 3,865.61 3,297.14 6,053.59 6,039,891.59 522,806.10 0.00 6,881.29 7" Geologic Targets Oliktok Point #1 P61 11 TVD Target Name +N/-S +E/-W Northing Easting (ft) -Shape ft ft (ft) (ft) 3,848.00 Oliktok Point #1 Rev 2 3,105.80 6,045.34 6,039,700 .24 522,798.28 -Circle (radius 250.00) Prognosed Casing Points Measured Vertical Casing Hole Depth Depth Diameter Diameter (ft) (ft) (") (") 2,600.00 1, 997.72 10-3/4 13-1 /2 8,936.99 3,905.61 7 7-1/2 9/13/2006 5:35:53PM Page 5 of 6 COMPASS 2003.11 Build 48 Halliburton Company Planning Report -Geographic 22/38 Database: EDM 14 B48 Local Co-ordinate Reference: Site OLIKTOK POINT Company: Kerr McGee TVD Reference: SITE @ 40.OOft (Original Site Elev) Project: OLIKTOK POINT MD Reference: SITE @ 40.OOft (Original Site Elev) Site: OLIKTOK POINL North Reference: True Well: Oliktok Point #1 Survey Calculation Method: Minimum Curvature Wellbore: Oliktok Poinb#1 PBi It Design: Oliktok Point #1 11 P81 VVP05 Prognosed Formation Intersection Points Measured VBrticai Depth Inclination Azimuth Depth +N/-E +E/-W (111 (°) (°) (n) (1t) (n) Name 2,172.15 58.55 72.37 1,815.00 288.12 906.62 BPRF 6,806.81 71.76 63.45 3,213.00 1,646.42 5,104.02 Ugnu 7,200.06 70.38 51.07 3,341.00 1,846.99 5,416.24 M-Sand 8,108.86 70.51 22.10 3,651.00 2,525.75 5,919.87 SBLF 6,251.26 70.96 17.60 3,698.00 2,652.15 5,965.48 N Sand 8,736.99 73.26 2.47 3,848.00 3,105.80 6,045.34 OA 9/13/2006 5:35:53PM Page 6 of 6 COMPASS 2003.11 Build 48 • Halliburton saROi~ Kerr McGee Mud Program 23/38 ~rER~n~~F ccr~o~anv~ BAao-p Kerr-McGee Oliktok Point #1 Baroid Mud Program Halliburton Baroid Name (Printed) Signature Date Originator Dave Soquet Reviewed by Dave Higbie Customer Approval Walter Quay Version No: Date: 2.0 August 18, 2006 Oliktok Point #1 v2.0 1 8/18/06 • r Halliburton BaROID Kerr McGee Mud Program 24/38 Oliktok Point #1 Mud Program General Discussion This injector well will be drilled from Oliktok Point in north Kuparuk. A 13 '/2" surface hole will be drilled directionally to a TD of 2,600' MD (1,997' TVD). A string of 10 %" casing will be run and cemented at this depth. A 9-7/8" hole will be drilled to 8,810' MD (3,910' TVD), targeting the Schrader Bluff. An inhibited KCI/Polymer mud will be used to drill surface and the 9-7/8" intervals. As a general drilling fluids plan, spud the well with inhibited 9.0 ppg 10% KCI/Polymer mud. The mud weight will then be held between 9.0-10.0 ppg mud weight to the surface hole TD unless hole conditions dictate otherwise. Our primary focus for surface hole drilling operations will be adequate mud weight for well control and sufficient mud viscosity for efficient hole cleaning. This spud mud is formulated with mechanisms to provide effective wellbore stabilization and to reduce drilling waste, i.e., ionic inhibition (KCI) and polymer encapsulation (PHPA). From the surface shoe, the continued use of the inhibited KCI/Polymer mud is suggested. When drilling this interval of the well a certain amount of new mud will be required coming out of the surface casing to re-adjust the low gravity solids content to within acceptable limits for continued drilling operations. For the most part, the mud density requirements will be met with additions of soluble salts (KCI) to allow maximum application of mechanical solids control support. This being the case, the mud filtrate salinity may range in the 80K-100K ppm range if additional mud weight is required. The KCI concentration is dependent upon MWD and lopping restrictions and could vary from this recommendation. Special Considerations 1. Waste minimization is critical to the success of this well. 2. Maintain a sufficient quantity of Driltreat (lecithin) to accomplish a 2 ppb treatment in the event gas hydrates are noted. 3. Lime and zinc carbonate should be on location for H2S contingency (@1 pallet No Sulf and 2 pallets lime). 4. Maintain an adequate barite supply (and other necessary products) to increase the mud weight of the current circulating volume by 1.5 ppg at any time (@2500 sx barite on location at all times). 5. Maintain an adequate supply of LCM and the other mud additives, which may be required to support this drilling program. Well Specifics: Casin Pro ram MD TVD Foota e 13'h" hole 10 3/" Casin 2600 1997 2600 9-7/8" hole 8810 3910 6210 Oliktok Point #1 v2.0 2 8/18/06 • • Halliburton eAROIO Kerr McGee Mud Program 25/38 Surface Hole Mud Properties (13'/Z" Hole, 10 3/<" Casing at 2,600' MD) Mud Properties Densi Viscosi YP PV 10 S. Gel API FL Initial 9.0 80 -120 35 - 45 13 - 21 10 - 15 <15 Final 9.0-10.0 50 - 80 15 - 30 15 - 23 10 -15 6-8 Surface Interval The surface interval of this well will be drilled with a 10% KCI/Polymer mud as formulated below: 9.0 paa Formulation Fresh Water - .95 bbl KCI - 37 ppb (ionic inhibition/50.5K ppm chlorides) EZ Mud DP - .75 ppb (polymer encapsulation) PAC-L/R - .5 ppb (API filtrate of 6-12 cc's) Barazan-D - 1-2 ppb (as required for an initial 35 YP) KOH - .1 ppb (pH = 8.5-9) Aldacide-G - .2 ppb (X-Cide 207 for rig maintenance) Baroid - 0 (as needed) Baracor 700 - 1.0 ppb (corrosion inhibitor) Barascav D - .5 ppb (to be added at rig) Spud the well with maximum flow rates (600-1000 gpm assuming 13 %2" hole w/5" drill pipe) to ensure good cuttings transport. Target an initial YP in the 35 range then adjust as dictated by the actual hole cleaning requirements of the well (minimum gravel is anticipated -mostly clays and sand). Reduce viscosity as allowed (previous wells in the area have TD'd the surface with a X20-25 YP). However, if hole cleaning appears to be inadequate, do not hesitate to quickly raise the viscosity as required. Polymer viscosity in the form of Barazan-D additions should be utilized to provide rheological support as needed. Utilize high viscosity sweeps to supplement the hole cleaning capabilities of the system. Barolift sweeps (.25 ppb Barolift in base mud) can also be utilized to minimize viscosity build up. With an initial mud density of 9.0 ppg, please note the other issues of concern as listed below: 1. Make sure all members of the drilling team are aware of the potential of encountering gas hydrates. 2. A mud weight increase is not currently programmed for drilling the gas hydrate interval of the well, if encountered. 3. If gas hydrates are noted, treat the system with 2.0 ppb of Driltreat (Lecithin) and '/2% by volume DriI-N-Slide. Some defoamer additions may also be necessary to help the gas break out. 4. Maintain the mud as cool as possible (less than 60°F if possible). Efforts to keep the fluid cool include mudding up with cold water and diluting the mud with cold water. The Baroid mud plant in Prudhoe Bay can be utilized to supply the initial volume of fluid .for the spud. Make every effort to maintain the system as clean as possible through the normal dilution process and maximization of solids control equipment application. Oliktok Point #1 v2.0 3 8/18/06 • • Hallibulrton BaROi~ Kerr McGee Mud Program zsisa Mud maintenance issues for this interval of the well are as follows: 1. If possible, use pre-mixed KCI water to maintain volume while drilling ahead. The density of the KCI solution should be based upon mud weight requirements at any given point of the well. 2. Use PACs/Dextrid for API filtration control. Target 6-12 cc's initially, dropping the fluid loss to the 6 cc range prior to running casing at the surface hole TD. 3. Hold the pH in the 8.5-9.5 range with KOH. 4. By material balance, maintain the EZ Mud DP in the .75-1.0 ppb range. Use .25 ppb in the initial formulation to minimize screen blinding until the polymer shears. 5. Control penetration rates based upon the ability of the surface system to process the drilling mud. 6. Daily additions of Aldacide G or X-Cide 207 are needed to control bacterial action. 7. Corrosion inhibitors should be run with this mud system (1 ppb Baracor 700 / .5 ppb Barascav D). 8. Keep MBT as low as possible (generally <11 ppb). Heavy amounts of clay may be present below the permafrost that could require additions of ConDet and/or DriI-N-Slide to reduce BHA balling and screen blinding. Sweeping the hole prior to the short trip at TD and again prior to coming out of the hole to run the surface casing is recommended. If possible (keeping waste minimization in mind), reduce the fluid's rheology to <20 YP after the casing is on bottom prior to starting the cement job. 13'/2" Maximum Acceptable ROP in fph at Specified GPM and RPM GPM-- 600 800 1000 100r m 68 104 120 120r m 196 133 163 Baroid's recommended flowrate for this interval is 800 gpm to maximize hole cleaning and solids control efficiency at these penetration rates. Maximize pipe rotation (ideally >120 RPMs), particularly once over 30 degrees, to aid in the removal of cuttings. Oliktok Point #1 v2.0 4 8/18/06 • • Halliburton sAROiD Kerr McGee Mud Program 2"3$ Production Hole Mud Properties (9-718" Hole to 8,810' MD) Mud Properties Densi Viscosi YP PV H API FL CI Initial 9.0 - 9.6 40 - 60 15 - 25 9 -18 8.5 - 9.5 <6 50-90K Pilot Hole Interval The production interval of this well will be drilled with the same 10% KCI/Polymer mud as the surface hole: 9.0 paa Formulation Fresh Water - .95 bbl KCI - 37 ppb (ionic inhibition/50.5K ppm chlorides) EZ Mud DP - .75 ppb (polymer encapsulation) PAC-UR - .5 ppb (API filtrate of <6 cc's) Barazan-D - 1 ppb (as required for an initial 15 YP) KOH - .1 ppb (pH = 8.5-9.5) Aldacide-G - .2 ppb (X-Cide 207 for rig maintenance) Baroid - (as needed) Baracor 700 - 1.0 ppb (corrosion inhibitor} Barascav D - .5 ppb (to be added at rig) Prior to drilling out the surface casing, condition the spud mud to <9.4 ppg density with <4% LGS and an MBT of <6 ppb (a certain amount of new mud will be required for re-adjusting the properties of the mud to insure a quality fluid for the initial drilling operations of the 9-7/8" hole). As in the surface hole, KCI will be used for ionic inhibition and for the basic density requirements of the system. If additional mud weight as needed, increase it with KCI to the 65,000-90,000 ppm range so as to allow maximum application of centrifuge support to optimize solids control efforts. A minimum of 50,000 ppm CI- should be used. Work with the MWD personnel on site to run the highest possible chloride concentration which will still allow their tools to read properly. Should the brine phase density be limited for the MWD, achieve the remaining density requirement with barite. Initially, target a mud density of 9.0-9.6 ppg with a YP in the 15 to 25 range. Adjust the YP as required with Barazan-D polymer for efficient hole cleaning. Pre-treat for screen blinding from heavy clays with Dril-N- Slide and/or ConDet treatments. Regular sweeping of the hole with high viscosity or Barolift sweeps is recommended every 4-6 hours while drilling to supplement the hole cleaning ability of the fluid. Flow rates in the 600 GPM range will provide adequate flow to clean the hole. The 9.0-9.6 ppg density will be maintained to TD unless hole conditions dictate otherwise. Maintain the mud as clean as possible through the use of solids control equipment and dilution as required. Maintain the API filtrate <6 initially with PAC's and Dextrid. Daily additions of X-Cide 207 should be made to control bacterial action. KOH should be used for pH control. Keep the MBT as low as possible (<11 ppb). Maintain Barascav D and Baracor 700 specs to aggressively treat for corrosion. Heavy amounts of clay will be present which require additions of ConDet and/or DriI-N-Slide to reduce BHA balling and screen blinding. Sweeping the hole prior to the short trip at TD and again prior to coming out of the hole to log is recommended. If possible (keeping waste minimization in mind), reduce the fluid's rheology to <20 YP after the casing is on bottom prior to starting the cement job. Oliktok Point #1 v2.0 5 8/18/06 • • Halliburton BAROIO Kerr McGee Mud Program 2$'3$ Maximum Acceptable ROP in fph at Specified GPM and RPM GPM-> 500 600 700 100r m 138 148 186 120r m 176 204 256 Baroid's recommended flowrate for this interval is 600 gpm to maximize hole cleaning at these penetration rates. Flowrates above 650 gpm cause a significant increase in ECD. Rotary speed is the most critical factor in hole cleaning. Maximize RPMs at all times. Risks and Contingencies 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. Wellbore Instability: The possibility for sloughing gravel exists in the surface hole section. Should this occur, immediately increase the rheology of the mud to accommodate hole cleaning. Also, maintaining the mud as cool as possible will minimize sloughing and washout. Stuck pipe: 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, 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. Corrosion Mitigation Barascav D and Baracor 700 will be run in the water base fluid system to mitigate corrosion. Daily sulfite and phosphonate checks will be run to monitor this program. Sulfite levels should be maintained at 200-300 ppm and phosphonate levels between 600-800 ppm. Lubrication: Due to the high angle of the wellbore, lubricant support will be required. It is recommended to add 2% of the tube cocktail (0.5% BDF-263, 1 % EZ Glide or Torq Trim II, and .5% EP Mudlube) to provide adequate but minimal lubricant support. This concentration can be increased to 5% in 1 % increments if all other remedial actions have been taken (sweeps, etc.). Additions of Barofibre (2-3 ppb) while drilling can also reduce torque and drag. This method was used on the Witch Farm ERD wells. 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 Oliktok Point #1 v2.0 6 8/18/06 Halliburton saROi~ Kerr McGee Mud Program 29'38 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. Long circulation times should be avoided if the bit/BHA is in one of the mudstone/clay sections. Pipe should be kept moving at all times during this circulation period. High speed pipe rotation is the most critical factor 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 Oliktok Point #1 v2.0 7 8/18/06 • • Halliburton BAROio Kerr McGee Mud Program sofas Surface -Modeled hole cleaning ina~rm~ Adequate hole cleaning is achieved at 100 fph at 800 gpm and 100 RPMs. Rotary speed is the most important factor in hole cleaning in this well, maximize RPMs at all times. Extended circulating times will be required at elevated penetration rates. Oliktok Point #1 v2.0 8 8/18/06 • Halliburton IsaROI~ Kerr McGee Mud Program 31/38 Production -Modeled hole cleaning vna~r~ Adequate hole cleaning is achieved at 100 fph at 600 gpm and 100 RPMs. Rotary speed is the most important factor in hole cleaning in this well, maximize RPMs at all times. 600 gpm is recommended as this rates improves hole cleaning without any appreciable increase in ECD. ECD begins to increase substantially at flowrates above 650 gpm. Extended circulating times will be required at elevated penetration rates. Oliktok Point #1 v2.0 9 8/18/06 • Halliburton BaRO1D Kerr McGee Mud Program s2~ss Fluid Volumes: Surface Interval: At spud approximately 600 barrels of new fluid will be delivered. Dilution rates for the 13 '/2" section are anticipated at .70 bbl/ft. Estimated Fluid Disposal Volumes:. P10 P50 P90 Initial build 500 600 1000 Dilution 1300 1820 3120 Reuse to next interval -500 -500 -500 Total 1300 1920 3620 Estimated Drill Solids Disposal Volumes: P10 P50 P90 Cuttin s Volume 500 580 690 Wettin Fluid 250 580 1380 Total 750 1160 2070 Production Interval: Dilution rates for the 9-7/8" section are anticipated at .54 bbl/ft. Estimated Fluid Disposal Volumes: P10 P50 P90 Initial build 200 300 800 Dilution 2480 3350 4960 Total 2680 3650 5760 Estimated Drill Solids Disposal Volumes: P10 P50 P90 Cuttin s Volume 600 650 740 Wettin Fluid 300 650 370 Total 900 1300 1110 Fluid Costs: P10 P50 P90 13'/z" Surface 50,000 78,000 109,000 9-7/8" Production 156,000 224,000 298,000 Total $206,000 $302,000 $407,000 Oliktok Point #1 v2.0 10 8/18/06 • • 33/38 Shallow Drilling Hazards Evaluation Kerr McGee Oliktok Point I-1, I-2 PB-1, I-2 Wells Alaska State Leases ADL 390615, 355024 Nikaitchuq Project Oliktok Point, Alaska Summary Pursuant to 20AAC 25.061, all available data from proximal wells and pertinent geophysical data have been evaluated for evidence of any shallow to intermediate depth drilling hazards. Mudlogs and wireline logs from these wells indicate minor amounts of natural gas hydrates in sands and gravels of the Sagavanirktok Formation associated with ice in the permafrost wedge. There is also the possibility of encountering heavy oil accumulations in the Ugnu and/or Schrader Bluff sections. Our well plan is designed for the case that both the shallow gas hydrates and heavy oil-saturated strata will be penetrated in both the Oliktok Point Injector 1 and 2 wellbores. Seismic data does not suggest or define any anomalous shallow hazard zones. Oliktok Point I-1 well is planned to be directionally drilled from a gravel pad to be located on Oliktok Point (Fig. 1). Figures 2 and 3 provide a more detailed picture of the proposed surface location. The proposed surface location is 2051' FNL and 1519' FEL of Section 5, T13N, R9E of the Umiat Meridian (X= 516,760.57'E, Y= 6,036,581.12'N, NAD 27, Zone 4) (Fig. 4). The OA Sand Member of the Schrader Bluff Formation is the target interval for this wellbore. The target location for the wellbore is 1,050' FSL and 750' FEL of Section 33, T 14N, R 9E. Coordinates are '' X=522,798'E and Y=6,039,700'N. The well will TD at a point 1,172' FSL and 744' FEL of Section 33, T 14N, R 9E. The wellbore will be plugged back for drilling of a lateral should the program continue. Oliktok Point I-2 well will be drilled from the same gravel pad upon which the Oliktok Point I-1 is located. The actual surface location will be slightly east and south of the I-1 surface location. The proposed surface location is 2,055' FNL and 1,526' FEL of Section 5, T13N, R9E of the Umiat Meridian (X=516,753.51'E &Y=6,036,577.37'N NAD 27 Zone 4). The OA Member of the Schrader Bluff Formation is the target interval for this wellbore, as well. The target location for the pilot hole is 750' FSL and 500' FEL of Section 31, T14N, R9E of the Umiat Meridian (X=512,489'E & Y=6,039,374'N, NAD 27 Zone 4) at a depth of 3613'. The target heel location for the lateral portion of the wellbore is projected to be 750' FSL, & 500' FEL, Sec. 31, T14N, R9E (X=512,489'E & Y=6,039,374'N, NAD 27, Zone 4) at a depth of 3,613'. The target toe location at TD for the lateral portion of the wellbore is projected to be X=508,609' E & Y=6,043,948'N, NAD 27, Zone 4 at a depth of 3627'. J. Kamm -- 9/15/2006 Page 1 JLK_Final_OP_Shallow Hazazds_1_ (2).doc • • 34/38 Geology: Shallow and Intermediate Depth Horizons Oliktok Point I-1 will penetrate strata ranging from the Gubik Formation (Pleistocene) at the surface, to the Schrader Bluff Formation of the Colville Group (Cretaceous) at the base of the pilot hole (Fig. 5). Oliktok Point I-2 will TD in the Late Cretaceous Schrader Bluff Formation as well. The Gubik Formation and the superficial covering of Quaternary sediments, are comprised of approximately 800' of interbedded sand, gravel, mud, and some low-grade coals deposited in marine and marginal marine settings. The Gubik Formation unconformably overlies the Sagavanirktok Formation (Late Cretaceous through Eocene). The Sagavanirktok Formation consists of complexly interbedded sand, shale, and conglomerate deposited in multiple sequences of marine and non-marine strata deposited in deltaic to coastal plain environments. These sediments are all unconsolidated. The Sagavanirktok is projected to be over 2500' thick in the Oliktok Point area. The Late Cretaceous Colville Group is comprised (from younger to older) of the Ugnu Formation, the Schrader Bluff Formation (also known as the West Sak Formation), and the Colville Mudstone. The Colville Group represents an overall upward shallowing, progradational sedimentary package deposited in environments ranging from open marine basinal to fluvial settings. Both Oliktok Point I-1 and I-2 wells will penetrate approximately 600' of Ugnu Formation sediments, mostly comprised of unconsolidated to slightly cemented sand and gravel. The Ugnu Formation overlies 400-500' of upward coarsening cycles of interbedded sand, silt and mud of the Schrader Bluff Formation. Many of the sands developed in the Ugnu and Schrader Bluff formations contain reserves of heavy oil in both the Milne Point and Kuparuk fields. Geophysics The 3D seismic grid covering the leases of interest was analyzed for potential shallow and intermediate depth drilling hazards (Fig. 6). The seismic data is of varying vintage and quality. The utility of some volumes for shallow hazard interpretation is questionable, at best. The seismic data, that was judged suitable, was then compared to wireline logs, mud logs and scout information from uphole sections in wellbores drilled in the Oliktok Point and Nikaitchuq areas. There is no geophysical evidence, such as amplitude anomalies or velocity sags, suggesting the proposed Oliktok Point I-1 and I-2 wells will encounter any form of shallow entrapped natural gas, or intersect any conductive faults (Fig. 7). J. Kamm -- 9/15/2006 Page 2 JLK_Final_OP_Shallow Hazards_1_ (2).doc • 35/38 Potential Shallow Drilling Hazards Permafrost Oliktok Point I-1 and I-2 surface locations are on a man made gravel pad at the northern end of the Oliktok Point promontory approximately 1.2 miles NNW of the Kuparuk River Field 3R pad. Oiktok Point #2 located 1.7 miles SE of the surface location of Oliktok Point I-1 and I-2, was drilled by Arco in 1984 Oliktok Point #2, based on resistivity profiles, encountered permafrost to a TVD of 1750'.''Oliktok Point #1, drilled in 1982 is located 2 miles south of the Oliktok Point I-1 and I-2 surface ,, location. Oliktok Point 1 encountered permafrost to a TVD of approximately 1650'. The Oliktok Point I-1 and I-2 should encounter permafrost to approximately the same depth interval as encountered in Oliktok Point #1 and #2 wells. Shallow Hydrocarbon Accumulations There is no evidence of any significant accumulations of gas hydrates in the '' shallow sands of the Oliktok Point area. Mudlogs from the Nikaitchuq #1 (3.5 miles north) well showed the presence of minor gas hydrates within the permafrost from 1200- 1750' TVD, with a maximum hotwire reading of 400 units gas (1280' TVD). The Exxon Thetis Island well (6 miles west of proposed location) was characterized by similar indications of gas hydrates contained within the permafrost wedge. The Nikaitchuq #1, 2, 3 and 4, wells along with the Tuvaaq #1 and Kigun #1 wells penetrated Schrader Bluff sands with shows of heavy oil in the Kigun #1 well at approximately 3,650-3,750' TVD. No well control problems were encountered while '' drilling through these show zones in any of the aforementioned wells. Oliktok Point 2 (1.S miles SSE) encountered hydrocarbon shows in the Schrader Bluff (3350-3550'TVD) but, again, no well control issues were noted. No hydrocarbon shows are associated with ~ this interval in the Exxon Thetis Island well or the East Harrison Bay well (4 miles WSW) Conclusions No drilling hazards associated with natural gas hydrates, shallow trapped natural gas or oil are anticipated in the drilling of the Oliktok Point I-1 and I-2 wells. Although minor amounts of gas hydrates are associated with the permafrost layer, these amounts can and will be dealt with by prudent drilling operations and practices. Heavy oil entrapped in either the Ugnu and/or Schrader Bluff intervals is not considered to present any drilling risks. J. Kamm -- 9/15/2006 Page 3 JLK_Final_OP_shallow Hazards_1_ (2).doc 0 o CLAMP o ~ CONNECTOR 13 s/8.5000/ WP HYDRO, TYPE CK• 13 5/B• 5000j WP '~~ L APo STUDDED TOP BY 13 s/8' API FLANGED BOTTOM HZS TRIMMED ANNULAR BOP I 13-s/8. 6000/ HYDRIL DOUBLE GATE PREVENTOR 13-s/e• s°oo/ wP I STUDDED 10P AND BOT10M H2S TRIMMED 4•.10,000/ WP 4• IO,000J WP CAMER~J TYPE F• CAMERON HCR YALVE GATE VALVE ~ I 4. 10,000) WP CAMERON HCR VALVE 4• CHOKE LINE _ 3• KILL LINE 4' 10,000/ WP ~ 4•x3• 13-s/8• s000J API CAMERON TYPE 4' FLANGED i0P AND BOTTOM LATE VALVE MUO CROSS W/ TKS1 (1) 4• IO,000j API FLANGED OUTLETS H1S TRIMMED i6• DIVE BOP STACK ELEVATION I 21 1/4. 2,OOOJ WP SHAFFER 2,000/ STUDDED TOP BY 4'-A t/2' ~ 21 1/4. 2.000/' FLANGED BOTTOM I N2S TRIMMED ANNULAR DIVERiER SYSTEM i 3~16- 16•-i50s FLG Z._0. - -~- z,-0. 2a' Dw. ~16• KNIFE GATE W/ HYD. ACTUATOR H:IAEADFILE\245E\Z45_OPERATIONS\245E036i-EFL-~c~5f9i 991-.z'd-'IMO CONFIGURATION SURFACE DIVERTER PIPING CONFIGURATION PLAN VIEW ~IU Material List Item Description 1-15 4-1/16" 10M Cameron Manual Gate Valve 16 2-1/16" 10M Cameron Manual Gate Valve A,B 4-1/16" 10M Cameron H2 Manual Choke C 3-1/16" 10M Shaffer Hydraulic Choke Legend Q~ White Handle Valves aD Normally Open ® Red Handle Valves Normally Closed Date: 6-1-01 Rev. 1 37138 ..,13 ~ ~ • Ems. ~'J A ~- D 38/38 4 3 4 3 2 1 THIS IS A GENERIC DRAWING NOTES REFER TO DASH NUMDERED PARTS LIST FOR ADDITICdJAI INFORMATION. PRJNT SCALE+J~6 A ~ g U C ASSEMBLY/SWE KERR McGEE ALASKA SLIMLINE WELLHEAD Ifi % 30-3/4 X 7-5/8 % 4-1/2 5000 PSI, PRODUCER PR~OSAL LAYOUT D ~ B n C Bonding Question Anadarko Petroleum Corporation /Ken-McGee ... • ~ Subject: Bonding Question Anadarko Petroleum Corporation / Kerr-McGee Oil & Gas Corporation From: Stephen Davies <steve davies@admin.state.ak.us> Date: Wed, 25 Oct 2006 15:25:08 -0800 To: Dedee Kelly@jltusa.com Dedee, The Alaska Oil and Gas Conservation Commission ("Commission") requires that an operator proposing to drill a well be bonded under our regulation 20 AAC 25.025 (attached, below). This bond must remain in effect until all of the operator's wells have been properly abandoned in conformance with Commission regulations and until the Commission approves final clearance of all of the operator's well locations. As I understand it, Kerr-McGee will remain a separate entity rather than being absorbed completely into Anadarko. So long asKerr-McGee remains operator of record for wells in Alaska. Kerr-McGee must maintain a separate borxl c>n file with the Commission, Please let me know if you have any questions. Steve Davies Alaska Oil and Gas Conservation Commission 907-793-1224 20 AAC 25.025 BONDING. (a) An operator proposing to drill a well for which a permit is required under ZO AAC 25.005 shall file a bond and, if required under (2) of this subsection, security to ensure that each well is drilled, operated, maintained, repaired, and abandoned and each location is cleared in accordance with this chapter. The bond must be (I) a surely band issued on Form 10-402A in favor of the Alaska Oil and Gas Conservation Commission by an authorized insurer under AS 21.09 whose certificate of authority is in good standing; or (2} a personal bond of the operator on Form IO-402B accompanied by security guaranteeing the operator's performance; security must be in the form of a certificate of deposit or irrevocable letter of credit. issued in the sole favor of the Alaska Oil and Gas Conservation Commission by a bank authorized to do business in the state, or must be in another form that the commission determines to be adequate to ensure payment. (b) A bond and, if required, security must be in the amount of not less than $100,000 to cover a single well or not less than $200,000 for a blanket bond covering all of the operator's wells in the state, except that the commission will allow an amount less than $100,000 to cover a single well if the operator demonstrates to the commission's satisfaction in the application for a Permit to Drill (Form 10-401) that the cost of well abandonment and location clearance will be less than. $100,000. (c) A bond and, if required, security must remain in effect until the abandonment of all wells covered by them and until the commission approves final clearance of the locations. The commission will then release the bond and security upon written request of the operator. (d) Fayment under a surety bond or security does not relieve an operator from the requirements of AS 31.05 anti this chapter except to the extent that a default is actually cured, or from any liability under AS 31.05.150. History - Eff. 4/13/80, Register 74; am 4/2/86, Register 97; am I I/7/99, Register 152 Authority - AS 31.05.030 AS 32.05.150 1 of 3 11/6/2006 2:09 PM Bonding Question Anadarko Petroleum Corporation / Kerr-McGee ... -------- Original Message -------- Subject:Re; Anadarko Petroleum Corporation / Kerr-McGee Oil & Gas Corporation Dnte:Tue, 24 Oct 200G 14:54:54 -0800 From:Stephen Davies <steve davies(a~admin.state.ak.us> Orgnniza'on:State of Alaska To:Kelly, Dedee <Dedee Kelly(c~jltusa.com> References:<E2C 132304D939A45A638497FD17A91221 B2B29(a~hou-ex0l.txsia.com> DeeDee, I send a request about this to our legal group, and I expect to hear from them soon. I'll keep you informed. Steve Davies AOGCC Kelly, Dedee wrote: Thank you so much for getting back to me so quickly. Next Tuesday would be wonderful. Thank you. Dedee Kelly Jardine Lloyd Thompson, LLC 5847 San Felipe, Suite 2750 Houston, Texas 77057 Phone (832) 485-4077 / Fax (832) 485-4078 Cell: (832) 724-4151 -----Original Message----- From: Stephen Davies [mailto:steve davies@admin.state.ak.us] Sent: Tuesday, October 17, 2006 12:24 PM To: Kelly, Dedee Subject: Re: Anadarko Petroleum Corporation / Kerr-McGee Oil & Gas Corporation Ms. Kelly, I'll need to check to see how this has been handled in the past and discuss with legal representation. Unfortunately, oux legal folks are out of the office until next Monday. If it won't be a problem for you, I can get you an answer on or before next Tuesday. Thanks, Steve Davies AOGCC 907-793-1224 Kelly, Dedee wrote: Mr. Davies, As you may be aware Anadarko Petroleum Corporation acquired Kerr-McGee on August 10, 2006. We are the surety broker for Anadarko and are currently merging the Kerr-McGee bonds in with the Anadarko Bonds and attempting to rid them of any duplications. We indicate that both Anadarko (Bond No. 22014630) and Kerr-McGee (Bond No. RLB0008978) have 2 of 3 11/6/2006 2:09 PM Bonding Question Anadarko Petroleum Corporation f Kerr-McGee ... Blanket Bond currently posted with the AOGCC. Is there any way we can combine these two bonds by adding Kerr-McGee as a principal and assume past liabilities of the Kerr-McGee bond under the existing Anadarko Bond? Thank you. Dedee Kelly Jardine Lloyd Thompson, LLC 5847 San Felipe, Suite 2750 Houston, Texas ?7057 Phone (832) 985-4077 / Fax (832) 485-4078 Cell: (832) 724-4151 Steve Davies 3 of 3 11/6/2006 2:09 PM RE: Olik PT I-2 • • Subject: RE: Olik PT I-2 From: "Quay, Walter" <Walter.Quay@asrcenergy.conl> Date: Mon, 16 Oct 2006 16:13:28 -08(~(~ To: Thoi~~as Maunder °=tom maunder("u'admin.state.ak.us== CC: Steve lla~~ies ~~"stove davies<<r.~~admin.stale.ak.us=, Dave Roby <dare roh~~(~ladmin.state.ak.us=% Tom, 1. The top of the slotted liner is intended to be: 6700'. The other depth on page 8 is an error. 2. The TOC for the 7-5/8" is intended to be -5000' 3. The MSP calculation on page 5 is intended to examine the well from the well control and well control equipment maximum perspective and to ensure the equipment is appropriately tested and fit for purpose. Using the Nikaitchuq #4 pressures is actually a bit high due to the greater tvds. For preciseness, The Max Surface Pressure on Page 5 should be: Nikaitchuq #4, Schrader Bluff BHP = 1927psi Oliktok Point I2 Expected BHP = 1778 psi Maximum Surface Pressure = 1778psi - (3650 ft x 0.11 psi/ft) _ 1377psi On the issue of expected pressures/MW needed.. There are several estimates for this well. The likely estimate is 1650 psi @ 3650' for 8.7 ppg emw. The highest estimate is < 1800 psi or 9.5 ppg emw. With that in mind, the 9.6 ppg MW should be sufficient. 4. This will be an injector. I will have 1600' of non-overlapped casing (providing the TOC is ~ 5000' and the liner top is 6700') to get sufficient bond log. I would prefer do defer the log in the removal of the ESP, injection string operation. Walter Quay (907)339-6341 -----Original Message----- From: Thomas Maunder [mailto:tam maunder~admin.state.ak.us] Sent : Wednesday, October 11, 2006 -3 :44 PM- _......_.........__.__.___..______ ..................___.._... To: Quay, Walter Cc: Steve Davies; Dave Roby Subject: Olik PT I-2 Walter, I am looking at the permit and have a couple of questions. 1. Where will the slotted liner hanger be? In the casing program on page 2, the TOL is indicated to ~r~ 6700'. But in the procedure on page 8 it says 4750'? Thats a long w~t'y above the shoe. 2. What is the planned TOC for your 7-5/8" cement? 3. Your intermediate mud programs state a maximum MW of 9.6 ppg and the SB MW maximum is given as 9.3 ppg, but on page 5 the BHP give for calculating MASP is 10.1 ppg equivalent. If the 10.1 ppg is correct, the mud weights are a little light. 4. Ultimately, I believe this well will be an injector. I imagine that a workover will be done to remove the ESP, is that correct? If the well will be an injector a bond log will be necessary. Depending on where your slotted liner is hung, you may wish to consider running such a log before a long interval is covered by the slotted liner. Please have a look at these questions. I may have more as I get further into the application, but wanted to get these off to you. Tom Maunder, PE $~>~~~ l~c~~ p~ti~Q~-S--~. ~~ 1 of 2 10/17/2006 2:02 PM • • Subject: Re: [Fwd: Re: AOGCC Needs Notice of Ownership and Designation of Operator Forms for Leases ADL 390615 and ADL 355024] From: Stephen Davies <steve davies@admin.state.ak.us> Date: Thu, 12 Oct 2006 15:19:23 -0800 To: "Henke, David" <DavidHenke@anadarko.com> David, Your questions have caused us to revisit these forms, and have sparked several interesting discussions. For lease ADL 355024: Arco (now ConocoPhillips) purchased this lease from DNR during a lease sale, so Arco alone was the initial owner of the lease. Every subsequent owner of any portion of this lease is required to file a Notice of Ownership with AOGCC. Armstrong, as owner of Segment 2 of this lease, designated Kerr-McGce as operator effective March 1, 2005. Since then, most of Armstrong's ownership has been transferred to Kerr-McGee and ENI. AOGCC needs each owner to designate Ken-McGee as operator by filing a Designation of Operator form (Form 10-411) with AOGCC. So, Kerr-McGee and ENI, as owners, must file Designation of Operator forms designating Kerr-McGee as operator for this lease, unless you can provide a prior agreement to AOGCC stating that Kerr-McGee alone, as simple majority owner, has full legal authority to name itself as operator. Armstrong, as a minority owner of the lease, is currently covered by the Form 10-411 that they previously filed on February 25, 2005. / For lease ADL 390615: /~~.D~ Kerr-McGee and Armstrong purchased this lease in 2005 directly from DNR during a lease sale, so neither ~' Kerr-McGee nor Armstrong have to file a Notice of Ownership form with AOGCC for this lease. Because ENI ,~ ~ purchased Armstrong's interest in tease ADL 390615, ENI must file a Notice of Ownership form with AOGCC for l~•~i this lease. o.v` ,o a ~ ~0.31.oG Kerr-McGee~and ENI, as owners, must file Designation of Operator forms designating Kerr-McGee as operator for ~^ this lease, unless you can provide a prior agreement to AOGCC stating that Kerr-McGee alone, as simple majority ~~,~ °~ owner, has full legal authority to name itself as operator. The legal description provided on airy AOGCC form must include the number of the affected lease and a detailed description of all affected governmental sections, including any segmentation. Please let me know if you have any additional questions. Steve Davies AOGCC Henke, David wrote: I, No problem. I wilt tell Dawn we do not need her to complete the form. As I now understand it, we need a Designation of Operator form for ADL 355024 from KMG to KMG and a ~ Designation of Operator form on ADL 390615 from Eni to KMG. Do we also need a Notice of Ownership form from Eni on ADL 355024, Segment 2? What about a Notice of Ownership form from Eni on ADL 390615? R~.CG u~t.d ia.3g~ • From: Stephen Davies [mailto:steve_davies@admin.state.ak.us] Sent: Thursday, Oc6ober 12, 2006 2:48 PM To: Henke, David Subject: [Fwd: Re: AOGCC Needs Notice of Ownership and Designation of Operator Forms for Leases ADL 390615 and ADL 355024] David, One change is needed. AOGCC does not require a Notice of Ownership form from the initial owners of a lease purchased at a DNR lease sale. The form is only required from every subsequent owner of that lease. My apologies for the confusion and any extra work. Please let me know if you have any questions. Steve Davies AOGCC Original Message -------- Subject:Re: AOGCC Needs Notice of Ownership and Designation of Operator Forms for Leases ADL 390615 and ADL 355024 Date:Wed, 11 Oct 2006 08:56:20 -0800 From:Stephen Davies <steve davies(a,admin.state.ak.us> Organization:State of Alaska To:Henke, David <David.Henke c~ianadarko.com> References:<C3159C51 B4B7F441 BC834D66E'7D661 E6868D4F~a,houexg3.km~.com> David, A full legal description of each property must be provided to the AOGCC, and that description must include all pertinent segment number(s) that are being transferred from the existing owner to the new owner. The Assignor (existing owner) must sign the Notice of Ownership form, and the AOGCC must receive the signed original copy for our records, including dceumentation that the representative signing the form is indeed legally authorized to do so. For the Designation of Operator form (Form 10-411), the operator must sign to accept responsibility for operations on the lease. A representative of the owner must sign the form to verify that the owner has indeed assigned the operating rights. Again, AOGCC must receive the signed original copy for our records. Both of these forms are legally binding documents, and they establish responsibility for all operations conducted on each lease. So the representative(s) signing each form must have sufficient authority to bind their company (companies). That is why AOGCC requires Powers of Attorney or other evidence of signatory authority as attachments to each document. Please let me know if you have questions. Steve Davies AOGCC Henke, David wrote: Steve, on ADL 355024 do we just refer to Segment 2 in the property description? Do we still need to get Armstrong to sign on the Notice of Ownership farm? Or assignment came from them. I could get copies of the filed assignment and attach to the form and put in "see assignment' in the signature block if that would work. I don't see any problems in filing out the form to designate ourselves as operator except for verifying who can sign. Are there any requirements or restrictions on that? Sony to be so much trouble on this. Wish I had started a few months ago. We probably should have filed these forms as soon as we acquired the lease for ADL 390615 and as soon as we got the assignment on the portion of ADL 355024 we acquired. I will know better next time. From: Stephen Davies [mailto:steve davies@admin.state.ak.us] Se~rt: Tuesday, October 10, 2006 6:55 PM To: Henke, David Subject: AOGCC Needs Notice of Ownership and Designation of Operator Forms for Leases ADL 390615 and ADL 355024 David, Because Kerr-McGee (Anadarko? will they remain sepazate entities in Alaska?) is proposing to conduct drilling operations on lease ADL 390615, it must file a Notice of Ownershipform (Form 10-41'n with AOGCC to conform with our regulation 20 AAC 25.022 and to complete our files. Since ENI became an owner of the lease when they purchased Armstrong's interest, EI~TI must also file a Notice of Ownership form with the AOGCC. A Designation of Operator form (Form 10-411) must also be filed with AOGCC for this lease. The same applies to lease ADL 355024 for the Oliktok Point I-2 well: Kerr-McGee, ENI and any other owners must file Notice of Ownership forms with AOGCC. In addition, to keep AOGCC's records clear and complete, Kerr-McGee should also file another Designation of Operator form naming itself as operator for lease ADL 355024. Please let me know if you have any questions. Steve Davies AOGCC Henke, David wrote: Thanks, Steve. It looks like we will have the Designation of Operator forms to you by the end of the week. As I read the regs, the notice of ownership form would not be necessary for us since we have a-ways been the owner and thus have not "become" an owner. My confidence level is not high. Is my understanding correct? Eni tells me they have already made the appropriate filings. Do you need more from them? If you do, is it just the Notice of Ownership form? I did find the copy earlier on the web site. When I read it, it looked like it did not apply to us. I was not so sure of Eni. Perhaps I was not correct about us. __ From: Stephen Davies (mailto:steve davies@admin.state.ak.us] Sent: Monday, October 09, 2006 4:17 PM To: Henke, David Subject: Re: [Fwd: AOGCC Needs Notice of Ownership and Designation of Operator Farms for Lease ADL 390615] David, Here is the pertinent regulations. The Notice of Ownership form is available on the Commission's web site at • • http:/Iwww.ao~caalaska.~ov/forms/formsindex.shtml. Please let me know how I can help. Steve Davies AOGCC 20 AAC 25.020 DESIGNATION OF OPERATOR. If an owner of a property wishes to designate a new operator for the property, the owner shall submit to the commission for approval a Designation of Operator (Form 10-411). The commission will not approve the designation of a new operator without the signature of the newly designated operator on the same Designation of Operator form. By signing the Designation of Operator form, the newly designated operator agrees to accept the obligations of an operator. The newly designated operator shall furnish a bond and, if required, security as provided for in 20 AAC 25.025. The commission's acceptance of the designated operator's bond constitutes the release of the former operator's bonding obligation for the properly indicated on the Designation of Operator form. History - Eff. 4/13/80, Register 74; am 4/2/86, Register 97; am 11/7/99, Register 152 Authority - AS 31.05.030 <> <!__[if !supportEmptyParas]--> <!--[endif]--> 20 A-AC 25.022 NOTICE OF OWNERSffiP. Within 15 days after a person becomes an owner of a property on which operations subject to this chapter are proposed to the commission or are being conducted, the person shall file a Notice of Ownership (Form 10-417). <>History - Eff. 4/2/86, Register 97; am 11/7/99, Register 152 Authority - AS 31.05.030 ----------------------------------------------------------------------------------------------------------- Henke, David wrote: I think I understand that designation of operator form needs to be filed with Eni as Owner designating i Kerr-McGee as Operator and that is now in the works. I don't know what designation of ownership form needs to be filed. Kerr-McGee was one of the original lessees. I understood that Armstrong had already filed appropriate forms following its sale to Eni. Which parties need to designate ownership? If ~! Kerr-McGee needs to file something I may need some help on how to fill out the form 10-417. • • From: Stephen Davies [mailto:Steve_daviesC@admin.state.ak.us) Sent: Moray, October 09, 2006 12:22 PM To: Henke, David Subject: [Fwd: AOGCC Needs Notice of Ownership and Designation of Operator Forms for Lease ADL 390615] David, I overlooked your change of email address. Apologies, Steve Davies AOGCC ------- Original Message -------- Subject:AOGCC Needs Notice of Ownership and Designation of Operator Forms for Lease ADL 390615 Date:Fri, 29 Sep 2006 08:37:40 -0800 From:Stephen Davies <steve davies~a,admin.state.ak.us> Organization:State of Alaska To:Henke, David <dhenke(a~ a.com> David, While reviewing Kerr-McGee's application for a permit to drill for Oliktok Point I-1, I noted that Kerr-McGee has not filed Notice of Ownership or Designation of Operator forms for lease ADL 390615, the lease that will contain the top of the productive interval and the total depth of the well. Notice of Ownership or Designation of Operator forms, numbered 10-917 and 10-411 respectively, can be found on the Alaska Oil and Gas Conservation Commission's web site at http://www.aogcc.alaska.gov/forms /f ormsindex.shtml. Please note that the permit to drill for Oliktok Point I-1 cannot be approved until these forms have been filed with, and approved by, the Commission. The approximate spud date for the well is November 1, so there is ample time for filing and processing of these forms. If you have any questions, please call me at (907) 793-1224. Thank you, Steve Davies Sr. Petroleum Geologist Alaska Oil and Gas Conservation Commission *Please note my E-Mail Address has changed. Please update your contact list* __ Anadarko Confidentiality Notice: This electronic transmission and any attached documents or other writings are intended only for the person or entity to which it is • • addressed and may contain information that is privileged, confidential or otherwise protected from disclosure. If you have received this communication in error, please immediately notify sender by return e-mail and destroy the communication. Any disclosure, copying, distribution or the taking of any action concerning the contents of this communication or any attachments by anyone other than the named recipient is strictly prohibited. *Please note my E-Mail Address has changed. Please update your contact list* Anadarko Confidentiality Notice: This electronic transmission and any attached documents or other writings are intended only for the person or entity to which it is addressed and may contain information that is privileged, confidential or otherwise protected from disclosure. If you have received this communication in error, please immediately notify sender by return e-mail and destroy the communication. Any disclosure, copying, distribution or the taking of any action concerning the contents of this commanication or any attachments by anyone other than the named recipient is strictly prohibited. Steve Davies RE: AOGCC Needs Notice of Ownership and Designation of Opera... ~ i Subject: RE: AOGCC Needs Notice of Ownership and Designation of Operator Forms for Leases ADL 390615 and ADL 355024 From: "Henke, David" <David.Henke@anadarko.com> Date: Wed, l l Oct 2006 13:19:04 -0500 To: Stephen Davies <steve davies@admin.state.ak.us> Thanks, Steve. Now that I have read this and previous email, I think I know how to go forward. I will contact DNR today. From: Stephen Davies [mailto:steve davies@admin.state.ak.us] Seat: Wednesday, October 11, 200611:56 AM To: Henke, David Subject: Re: AOGCC Needs Notice of Ownership and Designation of Operator Forms fear Leases ADL 390615 and ADL 355024 David, A full legal description of each property must be provided to the AOGCC, and that description must include all pertinent segment number(s) that are being transferred from the existing owner to the new owner. The Assignor (existing owner) must sign the Notice of Ownership form, and the AOGCC must receive the signed original copy for our records, including documentation that the representative signing the form is indeed legally authorized to do so. For the Designation of Operator form (Form 10-411), the operator must sign to accept responsibility for operations on the lease. A representative of the owner must sign the form to verify that the owner has indeed assigned the operating rights. Again, AOGCC must receive the signed original copy for our records. Both of these forms are legally binding documents, and they establish responsibility for all operations conducted on each lease. So the representative(s) signing each form must have sufficient authority to bind their company (companies). That is why AOGCC requires Powers of Attorney or other evidence of signatory authority as attachments to each document. Please let me know if you have questions. Steve Davies AOGCC Henke, David wrote: ~, Steve, on ADL 355024 do we just refer to Segment 2 in the property description? Do we still need to get Armstrong to sign on the Notice of Ownership form? Or assignment came from them. I could get copies of the filed assignment and attach to the form and put in "see assignment" in the signature block if that would work. I don't see any problems in filing out the form to designate ourselves as operator except for verifying who can sign. Are there any requirements or restrictions on that? Sorry to be so much trouble on this. Wish I had started a few months ago. We probably should have filed these forms as soon as we acquired the lease for ADL 390615 and as soon as we got the assignment on the portion of ADL 355024 we acquired. I will know better next time. From: Stephen Davies [mailto:steve_davies@admin.state.ak.us] 1 of 5 10/11/2006 10:44 AM r~ u Subject: Re: AOGCC Needs Notice of Ownership and Designation of Operator Forms for Leases ADL 390615 and ADL 355024 From: Stephen Davies <steve davies@admin.state.ak.us> Date: Wed, 11 Oct 2006 08:56:20 -0800 To: "Henke, David" <David.Henke@anadarko.com> David, A full legal description of each property must be provided to the AOGCC, and that description must include all pertinent segment number(s) that are being transferred from the existing owner to the new owner. The Assignor (existing owner} must sign the Notice of Ownership form, and the AOGCC must receive the signed original copy for our records, including documentation that the representative signing the form is indeed legally authorized to do so. For the Designation of Operator form (Form 10-411), the operator must sign to accept responsibility for operations on the lease. A representative of the owner must sign the form to verify that the owner has indeed assigned the operating rights. Again, AOGCC must receive the signed original copy for our records. Both of these forms are legally binding documents, and they establish responsibility for all operations conducted on each lease. So the representative(s) signing each form must have sufficient authority to bind their company (companies}. That is why AOGCC requires Powers of Attorney or other evidence of signatory authority as attachments to each document. Please let me know if you have questions. Steve Davies AOGCC Henke, David wrote: Steve, on ADL 355024 do we just refer to Segment 2 in the property description? Do we still need to get Armstrong to sign on the Notice of Ownership form? Or assignment came from them. I could get copies of the filed assignment and attach to the form and put in "see assignment" in the signature block if that would work. 'I I don't see any problems in filing out the form to designate ourselves as operator except for verifying who can sign. Are there any requirements or restrictions on that? I Sorry to be so much trouble on this. Wish I had started a few months ago. We probably should have filed these forms as soon as we acquired the lease for ADL 390615 and as soon as we got the assignment on the portion of ADL 355024 we acquired. I will know better next time. From: Stephen Davies [mailto:steve_davies@admin.state.ak.us] Sent: Tuesday, October 10, 2006 6:55 PM Ta: Henke, David Subject: AOGCC Needs Notice of Ownership and Designation of Operator Forms for Leases ADL 390615 and ADL 355024 David, Because Kerr-McGee (Anadarko? will they remain separate entities in Alaska?) is proposing to conduct drilling operations on lease ADL 390615, it must file a Notice of Ownershipform (Form 10-417) with AOGCC to conform }tE: AOGCC Needs Notice of Ownership and Designation of Opera... i ~ Subject: ltE: AOGCC Needs Notice of Ownership and Designation of Operator Forms for Leases ADL 390615 and ADL 355024 From: "Henke, David" <David.Henke@anadarko.com> Date: Wed, 11 Oct 200611:19:01-0500 To: Stephen Davies <steve davies@admin.state.ak.us> Steve, on ADL 355024 do we just refer to Segment 2 in the property description? Do we stilt need to get Armstrong to sign on the Notice of Ownership form? Or assignment came from them. !could get copies of the filed assignment and attach to the form and put in "see assignment' in the signature block if that would work. 1 don't see any problems in filing out the form to designate ourselves as operator except for verifying who can sign. Are there any requirements or restrictions on that? Sorry to be so much trouble on this. Wish I had started a few months ago. We probably should have filed these forms as soon as we acquired the lease for ADL 390615 and as soon as we got the assignment on the portion of ADL 355024 we acquired. 1 will know better next time. From: Stephen Davies [mailto:steve_davies@admin.state.ak.us] Sent: Tuesday, October 10, 2006 6:55 PM To: Henke, David Subject: AOGCC Needs Notice of Ownership and Designation of Operator Forms for Leases ADL 390615 and ADL 355024 David, Because Kerr-McGee (Anadarko? will they remain separate entities in Alaska?) is proposing to conduct drilling operations on lease ADL 390615, it must file a Notice of Ownerslipform (Form 10-41'7} with AOGCC to conform with our regulation 20 AAC 25.022 and to complete our files. Since ENI became an owner of the lease when they purchased Armstrong's interest, ENI must also file a Notice of Ownership form with the AOGCC. A Designation of Operator form (Form 10-411) must also be filed with AOGCC for this lease. The same applies to lease ADL 355024 for the Oliktok Point I-2 well: Kerr-McGee, ENI and any other owners must file Notice of Ownership forms with AOGCC. In addition, to keep AOGCC's records clear and complete, Kerr-McGee should also file another Designation of Operator form naming itself as operator for lease ADL 355024. Please let me know if you have any questions. Steve Davies AOGCC Henke, David wrote: Thanks, Steve. It looks like we will have the Designation of Operator forms to you by the end of the week. As I read the reps, the notice of ownership form would not be necessary for us since we have always been the owner and thus have not "become" an owner. My confidence level is not high. Is my understanding correct? Eni tells me they have already made the appropriate filings. Do you need more from them? If you do, is it just the Notice of Ownership form? I did find the copy earlier on the web site. When I read it, it looked like it did not apply to us. I was not so sure of Eni. Perhaps I was not correct about us. From: Stephen Davies fmailto:steve davies@admin.state.ak.us] Seat: Monday, October 09, 2006 4:17 PM To: Henke, David 1 of 4 10/11/2006 9:00 AM Re: AOGCC Needs Notice of Ownership and Designation of Operat... • Subject: Re: AOGCC Needs Notice of Ownership and Designation of Operator Forms for Leases ADL 390615 and ADL 355024 From: Stephen Davies <steve_davies@admin.state.ak.us> Date: Wed, 11 Oct 2006 08:36:36 -0800 To: "Henke, David" <David.Henke@anadarko.com> David, The purpose of the Notice of Ownership form (Form 10-417) is to notify the AOGCC of current ownership far each lease upon which oil and gas operations are planned. The AOGCC requires this form be signed by an authorized representative of the Assignor (existing owner) to verify that ownership of the lease is indeed being transferred. According to DNR's Land Administration System records (on line at http://www.dnr.state.ak.us/las/lasmenu.c&n ), for ADL 390615 the Assignor was the State of Alaska, Department of Natural Resources and the Assignee (new owner} is Kerr-McGee. The effective date for the lease assignment from DNR to Kerr-McGee was 7/1/2005. The percentage interest assigned or transferred to Kerr-McGee is 70% working interest. Boxes 6 and 7 on Form 10-417 should list the addresses of Kerr-McGee and the State of Alaska DNR, respectively. Signatures are required, so a state representative within DNR associated with the lease sale will have to sign the form and provide evidence of signatory authority. For ENI, according to DNR's Land Administration System records for ADL 390615, the Assignor was Armstrong Alaska, Inc. and the Assignee is ENI. The effective date for the lease assignment from Armstrong to ENI was 9/l/2005. The percentage interest assigned or transferred by Armstrong to ENI is 30% working interest. Boxes 6 and 7 on Form 10-417 should list the addresses of ENI and Armstrong, respectively. Signatures are required, so a representative from Armstrong will have to sign the form and provide evidence of signatory authority. The same procedure applies to lease ADL 355024 for the Oliktok Point I-2 well: Kerr-McGee, ENI and any other owners must file Notice of Ownership forms with AOGCC. You should verify the above assignment dates and working interest percentages against Kerr-McGee's land records. Please let me know if you have additional questions. Steve Davies AOGCC Henke, David wrote: They will remain separate entities at least for now. Kerr-McGee Oil & Gas Corporation is a wholly owned subsidiary of Anadarko. I struggled with how to fill out the 10-417. Does the attached work? Are any signatures required? If so, do we ask the DNR to sign? From: Stephen Davies fmailbo:steve_davies@admin.state.ak.us] Sent: Tuesday, October 10, 2006 6:55 PM To: Henke, David Subject: AOGCC Needs Notice of Ownership and Designation of Operator Forrr~ for Leases ADL 390615 and ADL 355024 David, 1 of 5 10/11/2006 8:58 AM RE: AOGCC Needs Notice of Ownership and Designation of Opera... • Subject: ltE: AOGCC Needs Notice of Ownership and Designation of Operator Forms for Leases ADL 390615 and ADL 355024 From: "Henke, David" <David.Henke@anadarko.com> Date: Wed, 11 Oct 2006 08:13:19 -0500 To: Stephen Davies <steve_davies@admin.state.ak.us> They will remain separate entities at least for now. Kerr-McGee Oil & Gas Corporation is a wholly owned subsidiary of Anadarko. I struggled with how to fill out the 10-417. Does the attached work? Are any signatures required? If so, do we ask the DNR to sign? From: Stephen Davies [mailto:steve_davies@admin.state.ak.us] Serrt: Tuesday, October 10, 2006 6:55 PM To: Henke, David Subject: AOGCC Needs Notice of Ownership and Designation of Operator Fonms for Leases ADL 390615 and ADL 355024 David, Because Kerr-McGee (Anadarko? will they remain separate entities in Alaska?) is proposing to conduct drilling operations on lease ADL 390615, it must file a Notice of Ownershipform (Form 10-41 ~ with AOGCC to conform with our regulation 20 AAC 25.022 and to complete our files. Since ENI became an owner of the lease when they purchased Armstrong's interest, ENI must also file a Notice of Ownership form with the AOGCC. A Designation of Operator form (Form 10-411) must also be filed with AOGCC for this lease. The same applies to lease ADL 355024 for the Oliktok Point I-2 well: Kerr-McGee, ENI and auy other owners must file Notice of Ownership forms with AOGCC. In addition, to keep AOGCC's records clear and complete, Kerr-McGee should also file another Designation of Operator form naming itself as operator for lease ADL 355024. Please let me know if you have any questions. Steve Davies AOGCC Henke, David wrote: Thanks, Steve. It looks like we will have the Designation of Operator forms to you by the end of the week. As I read the regs, the notice of ownership form would not be necessary for us since we have always been the owner and thus have not "become" an owner. My confidence level is not high. Is my understanding correct? Eni tells me they have already made the appropriate filings. Do you need more from them? If you do, is it just the Notice of Ownership form? I did find the copy earlier on the web site. When 1 read it, it looked like it did not apply to us. I was not so sure of Eni. Perhaps I was not correct about us. From: Stephen Davies f mailto:steve davies@admin.state.ak.us] Seat: Monday, October 09, 2006 4:17 PM To: Henke, David Subject: Re: [Fwd: AOGCC Needs Notice of Ownership and Designation of Operator Farms for Lease ADL 390615] David, 1 of 4 10/11/2006 9:00 AM STATE OF ALASKA ALASOIL AND GAS CONSERVATION COM ION NOTICE OF OWNERSHIP* 7d QAt^. 25 d22 1. Name of Current Owner of Record: Kerr-McGee Oil & Gas Corporation 2. Address: 16666 Northchase Houston, TX 77069 3. Notice is hereby given that the above named owner ,landowner , of record for the oil and gas property described below has assigned or transferred interest in the property indicated below: Property Designation: ADL 390615 Legal description of property: Field or Unit: TWN 14 N, R 9E, Umiat Meridian Sections 28 and 33 Property plat attached 4. Effective date of assignment or transfer: 5. Percentage interest assigned or transferred: Owner is original Lessee Owner owns 70% Working Interest 6. Assignee or Transferee (new owner): There is no new owner Address: 7. Assignor or Transferor {existing owner): Address: 8. Assignor or Transferor hereby certifies tt~t the foregoing is true and correct {attach Power of Attorney or other evidence of authority of person signing): Signature: Date: Printed Name: Title: *This form is required to be filed with the Alaska Oil and Gas Conservation Commission within 15 days after a person becomes owner of a property pursuant to 20 ubsequent changes in ownership. AOGCC Needs Notice of Ownership and Designation of Operator ... Subject: AOGCC Needs Notice of Ownership and Designation of Operator Forms for Leases ADL 390615 and ADL 355024 From: Stephen Davies <steve_davies@admin.state.ak.us> Date: Tue, 10 Oct 2006 15:55:09 -0800 To: "Henke, David" <David.Henke@anadazko.com> David, Because Kerr-McGee (Anadarko? will they remain sepazate entities in Alaska?) is proposing to conduct drilling operations on lease ADL 390615, it must file a Notice of Ownershipform (Form 10-417) with AOGCC to conform with our regulation 20 AAC 25.022 and to complete our files. Since ENI became an owner of the lease when they purchased Armstrong's interest, ENI must also file a Notice of Ownership form with the AOGCC. A Designation of Operator form (Form 10-411) must also be filed with AOGCC for this lease. The same applies to lease ADL 355024 for the Oliktok Point I-2 well: Kerr-McGee, ENI and any other owners must file Notice of Ownership forms with AOGCC. In addition, to keep AOGCC's records clear and complete, Kerr-McGee should also file another Designation of Operator form naming itself as operator for lease ADL 355024. Please let me know if you have any questions. Steve Davies AOGCC Henke, David wrote: Thanks, Steve. It looks like we will have the Designation of Operator forms to you by the end of the week. As I read the reps, the notice of ownership form would not be necessary for us since we have always been the owner and thus have not "become" an owner. My confidence level is not high. Is my understanding correct? Eni tells me they have already made the appropriate filings. Do you need more from them? If you do, is it just the Notice of Ownership form? I did find the copy earlier on the web site. When I read it, it looked like it did not apply to us. I was not so sure of Eni. Perhaps I was not correct about us. From: Stephen Davies [mailto:steve_davies@admin.state.ak.us] Sent: Monday, October 09, 2006 4:17 PM To: Henke, David Subject: Re: [Fwd: AOGCC Needs Notice of Ownership and Designation of Operator Forms for Lease ADL 390615] David, Here is the pertinent regulations. The Notice of Ownership farm is available on the Commission's web site at http://www.ao~ec.aaska.~ovlforms/formsindex.shtml. Please let me know how I can help. Steve Davies AOGCC 20 AAC 25.020 DESIGNATION OF OPERATOR. If an owner of a property wishes to designate a new operator for the property, the owner 1 of 4 10/11/2006 8:58 AM 12E: [Fwd: AOGCC Needs Notice of Ownership and Designation o... i • Subject: RE: [Fwd: AOGCC Needs Notice of Ownership and Designation of Operator Forms for Lease ADL 390615] From: "Henke, David" <David.Henke@anadarko.com> Date: Mon, 09 Oct 2006 16:24:43 -0500 To: Stephen Davies <steve davies@admin.state.ak.us> Thanks, Steve. It looks like we will have the Designation of Operator forms to you by the end of the week. As I read the regs, the notice of ownership form would not be necessary for us since we have always been the owner and thus have not "become" an owner. My confidence level is not high. Is my understanding correct? Eni tells me they have already made the appropriate filings. Do you need more from them? If you do, is it just the Notice of Ownership form? !did find the copy earlier on the web site. When I read it, it looked like it did not apply to us. I was not so sure of Eni. Perhaps I was not correct about us. Fwm: Stephen Davies [maitto:steve_davies~admin.state.ak.us] Sent: Monday, October 09, 2006 4:17 PM To: Henke, David Subject: Re: [Fwd: AOGCC Needs Notice of Ownership and Designation of Operator Forms for Lease ADL 390615] David, Here is the pertinent regulations. The Notice of Ownership form is available on the Commission's web site at http:llwww.ao~cc.alaska.~ov/formsfformsindex.shtinl. Please let me know how 1 can help. Steve Davies AOGCC 20 AAC 25.020 DESIGNATION OF OPERATOR. ff an owner of a properly wishes to designate a new operator for the property, the owner shall submit to the commission for approval a Designation of Operator (Farm 10-411). The commission will not approve ~e designation of a new operator without the signature of the newly designated operator on the same Designation of Operator form. By signing the Designation of Operator form, the newly designated operator agrees to accept the obligations of an operator. The newly designated operator shall furnish a bond and, if required, security as provided for in 20 AAC 25.025. The commission's acceptance of the designated operator's bond constitutes the release of the former operator's bonding obligation for the property indicated on the Designation of Operator form. History - Eff. 4/13/80, Register 74; am 4/2/86, Register 97; am 1 I/7/99, Register 152 Authority - AS 31.05.030 n <!--[if !supportEmptyParas]--> <!--[endifJ--> 20 AAC 25.022 NOTICE OF OWNERSffiP. 1 of 3 10/11/2006 8:59 AM RE: [Fwd: AOGCC Needs Notice of Ownership and Designation o .. ~' pro pr perry Within 15 s after a n becomes an owner of a o on which operations s"object to this chapter are proposed to the commission or are being conducted, the person shall file a Notice of Ownership (Form 10-417). <>History - Eff. 4/218b, Register 97; am 11/7/99, Register 152 Authority - AS 31.05.030 Henke, David wrote: I think I understand that designation of operator form needs to be filed with Eni as Owner designating Kerr-McGee as Operator and that is now in the works. I don't know what designation of ownership form needs to be filed. Kerr-McGee was one of the original lessees. I understood that Armstrong had already filed appropriate forms following its sale to Eni. Which parties need to designate ownership? If Kerr-McGee needs to file something I may need some help on how to fill out the form 10-417. From: Stephen Davies (mailto:steve davies@admin.state.ak.us] Sent: Monday, October 09, 2006 12:22 PM To: Menke, David Subject: [Fwd: AOGCC Needs Notice of Ownership and Designation of Operator Forms for Lease ADL 390615] David, I overlooked your change of email address. Apologies, Steve Davies AOGCC ------- Original Message -------- Subject:AOGCCNeeds Notice of Ownership and Designation of Operator Forms for Lease ADL 390b15 Date:Fri, 29 Sep 2006 08:37:40 -0800 From:Stephen Davies <steve davies(n~admin.state.ak.us> Organization: State of Alaska To:Henke, David <dhenke(a~,km~.com> David, While reviewing Kerr-McGee's application for a permit to drill for Oliktok Point I-1, I noted that Kerr-McGee has not filed Notice of Ownership or Designation of Operator forms for lease ADL 390615, the lease that will contain the top of the productive interval and the total depth of the well. Notiee of Ownership or Designation of Operator forms, numbered 10-417 and 10-411 respectively, can be found on the Alaska Oil and Gas Conservation Coimltission's web site at http://www.aogcc.alaska.gov/forms/formsindex.shtml. Please note that the permit to drill for Oliktok Point I-1 cannot be approved until these forms have been filed with, and approved by, the Commission. The approximate spud date for the well is November 1, so there is ample time for filing and processing of these forms. 2 of 3 10/1ll200b 8:59 AM RE: [Fwd: AOGCC Needs Notice of Ownership and Designation o... If you have any questions, please call me at (907) 793-1224. Thank you, Steve Davies Sr. Petroleum Geologist Alaska oil and Gas Conservation Commission *Please note my E-Mail Address has changed. Please update your contact list* Anadarko Confidentiality Notice: This electronic transmission and any attached documents or other writings are intended only for the person or entity to which it is addressed and may contain information that is privileged, confidential or otherwise protected from disclosure. If you have received this communication in error, please immediately notify sender by return e-mail and destroy the communication. Any disclosure, copying, distribution or the taking of any action concerning the contents of this communication or any attachments by anyone other than the named recipient is strictly prohibited. *Please note my E-Mail Address has changed. Please update your contact list* Anadarko Confidentiality Notice: This electronic transmission and any attached documents or other writings are intended only for the person or entity to which it is addressed and may contain information that is privileged, confidential or otherwise protected from disclosure. If you have received this communication in error, please immediately notify sender by return e-mail and destroy the communication. Any disclosure, copying, distribution or the taking of any action concerning the contents of this communication or any attachments by anyone other than the named recipient is strictly prohibited. 3 of 3 10/11/2006 8:59 AM Re: [Fwd: AOGCC Needs Notice of Ownership and Designation of... Subject: Re: [Fwd: AOGCC Needs Notice of Ownership and Designation of Operator Forms for Lease ADL 390615] From: Stephen Davies <steve_davies@admin.state.ak.us> Date: Mon, 09 Oct 2006 13:16:56 -0800 To: "Henke, David" <David.Henke@anadazko.com> David, Here is the pertinent regulations. The Notice of Ownership form is available on the Commission's web site at http:/1www.aogcc.alaska.govlforms/formsindex.shtml. Please let me know how I can help. Steve Davies AOGCC 20 AAC 25.020 DESIGNATION OF OPERATOR If an owner of a property wishes to designate a new operator for the property, the owner shall submit to the commission for approval a Designation of Operator (Form 10-411). The commission will not approve the designation of a new operator without the signature of the newly designated operator on the same Designation of Operator farm. By signing the Designation of Operator farm, the newly designated operator agrees to accept the obligations of an operator. The newly designated operator shall furnish a bond and, if required, security as provided for in 20 AAC 25.025. The commission's acceptance of the designated operator's bond constitutes the release of the former operator's bonding obligation for the property indicated on the Designation of Operator form. History - Eff. 4/13/80, Register 74; am 4/2/86, Register 97; am 11/7/99, Register 152 Authority - AS 31.05.030 0 20 AAC 25.022 NOTICE OF OWNERSHIP. Within 15 days after a person becomes an owner of a property on which operations subject to his chapter are proposed to the commission or aze being conducted, the person shall file a Notice of Ownership (Form 10-41?). ~oHistory - Eff. 4/2/86, Register 97; am 1117/99, Register 152 Authority - AS 31.05.030 1 of 3 10/11/2006 8:58 AM Re: [Fwd: AOGCC Needs Notice of Ownership and Designation of... Henke, David wrote: I think I understand that designation of operator form needs to be filed with Eni as Owner designating Kerr-McGee as Operator and that is now in the works. I don't know what designation of ownership form needs to be filed. Kerr-McGee was one of the origins! lessees. 1 understood that Armstrong had already filed appropriate forms following its sale to Eni. Which parties need to designate ownership? !f Kerr-McGee needs to file something I may need some help on how to fill out the form 10-417. __ ______ From: Stephen Davies [mailto:steve davies@admin.state.ak.us] Sent: Monday, October 09, 200612:22 PM To: Henke, David Subject: [Fwd: AOGCC Needs Notice of Ownership and Designation of Operator Forms for Lease ADL 390615] David, I overlooked your change of email address. Apologies, Steve Davies AOGCC ------- Original Message -------- Subject:AOGCCNeeds Notice of Ownership and Designation of Operator Forms for Lease ADL 390615 Date:Fri, 29 Sep 2006 08:37:40 -0800 From:Stephen Davies <steve davies(a~admin.state.ak.us> Organization:State of Alaska To:Henke, David <dhenke(c~km~.com> David, While reviewing Kerr-McGee's application for a permit to drill for Oliktok Point I-1, Z noted that Kerr-McGee has not filed Notice of Ownership or Designation of Operator forms for lease ADL 390615, the lease that will contain the top of the productive interval and the total depth of the well. Notice of Ownership or Designation of Operator forms, numbered 10-417 and 10-411 respectively, can be found on the Alaska Oil and Gas Conservation Commission's web site at http://www.aogcc.alaska.gov/forms/formsindex.shtml. Please note that the permit to drill for Oliktok Point I-1 cannot be approved until these forms have been filed with, and approved by, the Commission. The approximate spud date for the well is November 1, so there is ample time for filing and processing of these forms. If you have any questions, please call me at (907) 793-1224. Thank you, Steve Davies Sr. Petroleum Geologist Alaska Oil and Gas Conservation Commission *Please note my E-Mail Address has changed. Please update your contact list* 2 of 3 10!11/2006 8:58 AM Re: [Fwd: AOGCC Needs Notice of Ownership and Designation of... Anadarko Confidentiality Notice: This electronic transmission and any attached documents or other writings are intended only for the person or entity to which it is addressed and may contain information that is privileged, confidential or otherwise protected from disclosure. If you have received this communication in error, please immediately notify sender by return e-mail and destroy the communication. Any disclosure, copying, distribution or the taking of any action concerning the contents of this communication or any attachments by anyone other than the named recipient is strictly prohibited. Steve Davies • 3 of 3 10/11/2006 8:58 AM 12E: [Fwd: AOGCC Needs Notice of Ownership and Designation o... Subject: RE: [Fwd: AOGCC Needs Notice of Ownership and Designation of Operator Forms for Lease ADL 390615] From: "Henke, David" <David.Henke@anadarko.com> Date: Mon, 09 Oct 2006 13:41:44 -0500 To: Stephen Davies <steve davies@admin.state.ak.us> I think I understand that designation of operator form needs to be filed with Eni as Owner designating Kerr-McGee as Operator and that is now in the works. I don't know what designation of ownership form needs to be filed. Kerr-McGee was one of the original lessees. 1 understood that Armstrong had already filed appropriate forms following its sale to Eni. Which parties need to designate ownership? If Kerr-McGee needs to file something I may need some help on how to fill out the form 10-417. From: Stephen Davies [mailto:steve_davies@admin.state.ak.us] Seat; Monday, October 09, 200612:22 PM To: Henke, David Subject: [Fwd: AOGCC Needs Notice of Ownership and Designation of Operator Forms for Lease ADi_ 390615] David, I overlooked your change of email address. Apologies, Steve Davies AOGCC ------- Original Message -------- Subject:AOGCCNeeds Notice of Ownership and Designation of Operator Forms for Lease ADL 390615 Date:Fri, 29 Sep 2006 08:37:40 -0800 From:Stephen Davies <steve davies(a,admin.state.ak.us> Organization: State of Alaska To:Henke, David <dhenke(a~km~.com> David, While reviewing Kerr-McGee's application for a permit to drill for Oliktok Point I-1, I noted that Kerr-McGee has not filed Notice of Ownership or Designation of Operator forms for lease ADL 390615, the lease that will contain the top of the productive interval and the total depth of the well. Notice of Ownership or Designation of Operator forms, numbered 10-417 and 10-411 respectively, can be found on the Alaska Oil and Gas Conservation Commission's web site at http://www.aogcc.alaska.gov/forms/formsindex.shtml. Please note that the permit to drill for Oliktok Point I-1 cannot be approved until these forms have been filed with, and approved by, the Commission. The approximate spud date for the well is November 1, so there is ample time for filing and processing of these forms. If you have any questions, please call me at (907) 793-1224. Thank you, Steve Davies Sr. Petroleum Geologist Alaska Oil and Gas Conservation Commission *P1ease note my E-Mail Address has changed. Please 1 of 2 10/11/2006 8:59 AM RE: [Fwd: AOGCC Needs Notice of Ownership and Designation o... update your contact list* Anadarko Confidentiality Notice: This electronic transmission and any attached documents or other writings are intended only for the person or entity to which it is addressed and may contain information that is privileged, confidential or otherwise protected from disclosure. If you have received this communication in error, please immediately notify sender by return e-mail and destroy the communication. Any disclosure, copying, distribution or the taking of any action concerning the contents of this communication or any attachments by anyone other than the named recipient is strictly prohibited. 2 of 2 10111/2006 8:59 AM [Fwd: AOGCC Needs Notice of Ownership and Designation of Ope... Subject: [Fwd: AOGCC Needs Notice of Ownership and Designation of Operator Forms for Lease ADL 390615] From: Stephen Davies <steve davies@admin.state.ak.us> Date: Mon, 09 Oct 2006 09:21:43 -0800 To: David.Henke@anadarko.com David, I overlooked your change of email address. Apologies, Steve Davies AOGCC ------- Original Message -------- Subject:AOGCC Needs Notice of Ownership and Designation of Operator Forms for Lease ADL 390615 Date:Fri, 29 Sep 2006 08:37:40 -0800 From:Stephen Davies <steve davies(a~admin.state.ak.us> Organization: State of Alaska To:Henke, David <dhenke~a ~.com> David, While reviewing Kerr-McGee's application for a permit to drill for Oliktok Point I-1, I noted that Kerr-McGee has not filed Notice of Ownership or Designation of Operator forms for lease ADL 390615, the lease that will contain the top of the productive intexval and the total depth of the well. Notice of Ownership or Designation of Operator forms, numbered 10-417 and 10-411 respectively, can be found on the Alaska Oil and Gas Conservation Commission's web site at http://www.aogcc.alaska.gov/forms/formsindex.shtml. Please note that the permit to drill for Oliktok Point I-1 cannot be approved until these forms have been filed with, and approved by, the Commission. The approximate spud date for the well is November 1, so there is ample time for filing and processing of these forms. If you have any questions, please call me at (907) 793-1224. Thank you, Steve Davies Sr. Petroleum Geologist Alaska Oil and Gas Conservation Commission Steve Davies 1 of 1 10/11/2006 9:26 AM AOGCC Needs Notice of Ownership and Designation of Operator ... Subject: AOGCC Needs Notice of Ownership and Designation of Operator Forms for Lease ADL 390615 From: Stephen Davies <steve davies@admin.state.ak.us> Date: Fri, 29 Sep 2006 08:37:40 -0800 To: "Henke, David" <dhenke~alcmg.com> David, While reviewing Kerr-McGee's application for a permit to drill for Oliktok Point I-1, I noted that Kerr-McGee has not filed Notice of Ownership or Designation of Operator forms for lease ADL 390615, the lease that will contain the top of the productive interval and the total depth of the well. Notice of Ownership or Designation of Operator forms, numbered 10-417 and 10-411 respectively, can be found on the Alaska oil and Gas Conservation Commission's web site at http://www.aogcc.alaska.gov/forms/f ormsindex.shtml. Please note that the permit to drill for Oliktok Point I-1 cannot be approved until these forms have been filed with, and approved by, the Commission. The approximate spud date for the well is November 1, so there is ample time for filing and processing of these forms. If you have any questions, please call me at (907) 793-1224. Thank you, Steve Davies Sr. Petroleum Geologist Alaska Oil and Gas Conservation Commission Steve Davies 1 of 1 10/11/2006 9:02 AM ~ ~CL"1 ,_ _ . WE _ ~~ SRC ,Energy Services a. su6sldGePy of -/kY•c~tic Slope Riegional.CorpoPatlon ~;. 390Q C, Str~x ;Anchoragge, Al~sica 9503 ~ ~ ~ ~ ~ehon~ .E907k 33~-6200. ._ <, ~~~ ~. _. .... ~= >SQ~Y ~,ON'E HUNDRED DOLLARS A1~D ZERO CENT§ **~~~`***~* ~ STATE OF ALASKA To ~~E~ ~~ pIL & GAS CONSERVATION COMMISION s o~~x o~ :-_333 WEST 7TH AVE STE 100 <ANCHORAGE, AK 99501 unrs Pnykb~'~-Check ~ ~ ~~ s-F`ARCO PeLASjCcX hF A. vet+QaaGE, n[,AS~cn 2 5<=SAP ~ ~ 119;4 2 &9-5` 12 5'~ ~s PAY THIS AMOUNT. ,,,,, ~; ~~~. * ~ ~t ~_~r ar ~ -~ ~; 51 bQ.00 -'. Void Oi~ei $~OOo00 ~~ ~, ~., ii'0000 L i 9 24 2~~' ~: L 2 5 2000 5 7v: 3 7~~~ 78 2 7 L L~~' y r TRANSMITTAL LETTER CIIECKLIST WELL NAME ~ ~~~ ~ ~. PTD# 2-~~ " ~.3 Develo m V p ent Service Exploratory Stratigraphic Test Non-Conventional Well Circle Appropriate Letter /Paragraphs to be Included in Transmittal Letter CHECK i ADD-ONS WHAT ~ (OPTIONS) APPLIES MliLTILATERAL (If [ast two digits in API number are between 60-69} TEXT FOR APPROVAL LETTER The permit is for a new wellbore segment of existing well Permit No. , API No. 50- - _ Production should continue to be reported as a function of the original API number stated above. ;PILOT HOLE ', In accordance with 20 AAC 25.005(f), all records, data and logs C ~ I acquired for the pilot hole must be clearly differentiated in both I i I well name ( PH) and API number ~ ~ f (~0- - -_) from records. data and logs j ; i I acquired for well i SPACING I ~ I The permit is approved subject to full compliance with 20 AAC EXCEPTION ~ 2~.05~. Approval to perforate and produce % inject is contingent ' i 'upon issuance of a conservation order approving a spacing i i j exception. assumes the ~ I -- I liability of any protest to the spacing exception that may occur. ~ l DRY DITCH ~ Ali dry ditch sample sets submitted to the Commission must be in SAMPLE I no greater than 30' sample intervals from below the permafrost or ' I from where samples are first caught and 10' sample intervals ~ through target zones. i i ~ Non-Conventional ~ Please note the following special condition of this permit: i I Well ~ production or production testing of coal bed methane is not allowed i for (name of well) until after (Company Name) has designed and ' ~ implemented a water well testing program to provide baseiine data on water quality and quantity. (Companv Name) must contact the Commission to obtain advance approval of such water well testing ~ Rev: t 125,'06 C:\jody'.transmittal checklist hlE~FERMIT CHECKLIST Field & Pool Well Name: OLIKTOK POINT I-1 -Program EXP ___ Well bore seg ^ PTD#:2061370 Company KERR-MCGEE OIL & GAS CORP Initial ClasslType EXP / PEND GeoArea 890 Unit OnlOff Shore On Annular Disposal ]] Administration ;1 ~ Permit_fee attached- - _ - - _ _ _ _ _ _ - Yes _ _ - 2 Lease number appropriate- _ Yes Surface location in Section 5 which I_ie_s in ADL 355024; well will pass_through Section 4 that lie_s_ . - - .. _ . 3 Uniquewell_nameandnumber________--,-_____,-________________ Yes_ ____-in ADL 355023; topprgd_intervaiandTOwilllieinAOL-390615._.______--,-.-________- -._. 4 Weli located in a_defined.pool N_o_ Schrade[ Bluff- test wjll-be conducted outside_of an - ool_or unit boundaries. Yp 5 Well located proper distance-from drilling unitboundary- - - - - - - - - - - - - - - - - - - - Yes . . - - . - BHL will lie more than 500 feet from the lease bounds ry~ - 6 Well located proper distance-from other wells- Yes _ _ - No other Schrader Bluff wells within Section 33._ - - _ _ 7 Sufficient acreage available in_drilling unit- Yes . - _ - - _ No other Schrader Bluff wells within Section 33._ --------------------------------- 8 If_deviated, is_wellbore plat_included - _ - Yes - _ _ . _ Ownership-!Operator records complete-:.Kerr-McGee and_Armstron are the initial owners, so ownershi g- p 9 Operator only affected party- Yes - forms_are not needed from them. ENI provided a Notice_of Ownership form. K-M-and ENI_provided - - _ - _ - - . 10 Operator has-appropriate-bond in force _ Yes . - - - - - - Designation of Operator forms.- Co[rected_bond number: -bond RLB0008478 replaced_bond 3-798-381. 11 Permit can be issued without conservation order Yes 12 Permiteanbeissuedwithoutadministrative-approval---- -------------------- Yes_ ____._----,_________----.-_________ -.--._„________-_--.___________ Appr Date 13 Can permit be approved before 15-daywait - - Yes - SFD 1116!2006 14 Well located within area and strata authorized by-Injection Order # (put-IO# in-comments)_(For_ NA- , . _ _ - - _ 15 All wells within 114-mile area of review jdentified (For- service well only) _ - _ _ - - . - _ _ _ _ _ NA_ _ _ _ , - . _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ 16 Pre-produced injector- duration of preproduction I_ess_than_3 months_(For_service well only) NA_ _ 17 Nonconven, gas conforms to AS31,05.030Q.1.A),(~2.A-D) - - - .. _ - - - NA_ _ - . - - 1 18 Canductorstring_provided______________________ Yes_ ____-._ Engineering ~I 19 Surface casing_protectsoll known l1SDWs _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ NA- _ - _ _ _ _ _ All_ aquifers exempted, 40 CFR_147.102 (b).(3)._ Surface hole TD, X3000' S of exemption boundary.. _ _ ' 20 CMT_upl_adequate.tocirculate_onconductor-&surf_csg_______ ________________ Yes_ _--____________--_______ _.___ __________-. 21 CMT.vol_adegu_ate_to tie-in long string to surf csg_ NA_ No production_casing planned. -Production_hole wilt be-plugged, 22 CMTWII( coyer_all known productive horizons- - - - - _ _ _ _ _ _ . - - _ _ _ _ _ _ _ _ _ _ - - Yes _ _ _ _ _ _ _ _ _ - 23 Casing designs adequate for C, T, B &_permafrost- Yes 24 Adequatelan_kage-orreserve pit - ... Yes Rig is_e_quipped with steel-pits. _No reserve_pitplanned, All waste to approved disposal_wells._ - - . . 25 Ifa,re-drill,has_a_1.0-403 forabandon_mentbeenapp_roved___________________ __ NA__ ______--___._________-----_______,__-,---________--_----,________ 26 Adequatewellboreseparation-proposed______________________________ ,NA__ ___Nowellbgres proximate.___---.--._______ 27 Ifdiverterrequired,doesitmeet_regu_lotions_______________________________ Yes_ _____-----__________----_.-_________,.----_._______,-_-.-_________________ 28 Drilling fluitl_program schematic_& equip list adequate- Yes Maximum expected formation pressure 9,3_EMW._ Planned MW up 10.9.6 ppg, Appr Date P9 BOPEs,dolheymeetregulotion____________________ ______________ Yes_ _---. --.-.-.-- TEM 10!2!2006 ~ 30 BOPE_press rating appropriate; test to-(put prig in comments)- _ Yes MASP calculate_dat 1530 psi, 5K equ_ipment and BOP_test plaanned._ 300.0-psi test pr_essure_acceptable, - - - - - - ~ 11~ / 31 Choke_manifold comRlies w/APL RP-53 (-May 84) - - Yes ... i 32 Work willoccufwithoutoperationshutdow_n___________ ___________________ Yes_ _--__________---___-______.___--- 1 33 Is presence-ofH2$gas probable- _ . _ - - _ N_o_ _ - - _ , H2S ha_s not-been reported in_shallow_interyals in this area. -Rig has_sensors-and alarms. _ - . - . _ . _ 34 Mechanical condition of wells within AOR verified (FOrservice well gnly~ _ _ NA- _ _ - - - - -- - - - - - - - - - - _ _ . 35 PeCmitean be issued wfo hyd[ogen_sulfide measures. - - , _ Yes - - , None encountered in_Schrader_Bluff-in this area, but H2S sensors will beemployed, - - _ _ - - _ _ _ _ Geology 36 Data-presented on_ potential overpressure zones- _ _ - - _ _ - , _ _ _ - _ _ _ - _ _ _ Yes - - - _ _ -Minor-amounts of gas hydrates_expected from-1200'-1750' TVD; no other hazards_expected- - - - - - - - - - - - - - 37 Seismic analysis_ofshallowgaszones_____________________________-_- Yes- --___Noevidence_seen in seismic data..------.---.____-_-_--__._______.--.__.__ Appr Date 38 Seabed condiiion survey_(if off-shore) - - - NA - - - - - - - SFD 9/2912006 39 Contact name/phone forweek/ - r _ Tess re orts ex lorato onl Y p o9 P [ p ry - Ya - - - - Yes Michael StockjngeCat 281-673-6410, Walter Quay (ASRC) 339-6.341. - . _ _ _ - Geologic Date: Engineering Date lic Date Designation of Operator forms. Commissioner: Commissioner: o loner • • • Well History File APPENDIX Information of detailed nature chat is not particularly germane io the Well Permitting Process but is part of the history file. To iriprove the readability of the Well Nistory 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 io chronologically organize this category of information. HALLIBURT~N Sperry Drilling Services _.Surface Data Logging END OF WELL REPORT Kerr McGee Corporation OLIKTOK POINT I-1 ~~I KerrNtGee ~1~/EU ~~~ MAY 2 `~ 2007 ~& ~ mission ~o~-t3~ #i5<<l( TABLE OF CONTENTS 1. General Information 2. Daily Summary 3. Daily Operations (I.A.D.C.) 4. Morning Reports 5. Bit Record 6. Mud Reports 7. Show Reports 8. Survey Report 9. Days vs Depth 10. Data CD 11. Formation Evaluation Logs 12. Show Logs 13. Engineering Log HALLIBURTON Sperry Drilling Services GENERAL WELL INFORMATION Company: Kerr Mcgee Corporation Rig: Nabors N245 Well: Oliktok Point I-1 Field: Exploration Borough: North Slope State: Alaska Country: United States a~ 33 ~~~-6c~ API Number: _ _ 5v-oag - Sperry-Sun Job Number: AK-AM-0004627568 Job Start Date: 29t" November 2006 Job End Date (TD): 30t" December 2006 North Reference: True Declination: 23.646 deg Dip Angle: 80.940 deg Total Field Strength: 57616 NT Date Of Magnetic Data: November 26, 2006 Wellhead Coordinates N: North 70 deg 30 min 40.06 sec Wellhead Coordinates W: West 149 deg 51 min 46.25 sec SDL Engineers: D. Wilson , S. Jenkins, W. Hermanson, C Stringer Company Geologist: C. Goddard / A. Heinrich SDS Unit Number: 117 HALLIBURTON Sperry Drilling Services DAILY SUMMARY KERB McGEE OLIKTOK POINT I-1 2_ DAILY SUMMARY 29 Nov 2006 Spud exploratory well Qliktok Point I-1. Drill 13'/2" hole from 80' to 573'. 30 Nov 2006 Begin to directional drill 13%2" hole from 573' to 2350' without problems. 01 Dec 2006 Continue to directional drill 13'/2" hole from 573' to 2573' measured depth (MD)/2072' true vertical depth (TVD). Note: Bottom of permafrost at 2091' MD/1815' TVD. Trip out in preparation for running 103/" casing. Circulate and condition mud. Repair top drive. Trip out to 2400' with 45 klbs over pull. Back ream and pump out from 2400' to 1785' with max drag of 65 klbs. Trip in from 1785' to 2545'. Wash and ream from 2545' to 2573'. Circulate bottoms up twice and pump 50 bbl Hi Vis sweep and circulate hole clean. Trip out to 2289'. The hole is tight and swabbing with 40 klbs over pull. Finish pulling out of hole with some tight spots. Rig up and start to run 103/" casing. 02 Dec 2006 Trip in with 61 joints 103/" (2541') 45.5# L-80 casing. Land the casing with shoe at 2541' MD/2057' TVD. No mud losses while running casing. Cement casing as per program. Bump plug with 1000 psi. Floats held with cement returns to surface. Begin to nipple down diverter stack. 03 Dec 2006 Finish nippling down diverter. Nipple up 11 5/8" x 13 5/8"drilling spool, 24" drilling spool, and 41"drilling spool, set stack. Make up choke kill line and tighten all blow-out preventer (BOP) bolts. ' 04 Dec 2006 Nipple up BOP's, and replace IBOP in top drive. Rig up test lines and fill stack. Test BOP's. 05 Dec 2006 Finish testing BOP's. Change out bails & elevators. Rig up to handle bottom hole assembly (BHA). Lay down 8" BHA from Derrick. Repair broken chain on lay down skate. Replace annular 4 way valve on Koomey unit and replace bladders in 2 bottles on Koomey unit. Pressure accumulator system back to 3200 psi and perform drawdown test to 1550 psi. 06 Dec 2006 Pick up 5" drill pipe (DP) and rack back in derrick -total of 219 joints picked up in 12 hours with an average of 18 joints per hour. Remove bottom clamps on top drive and remove double pin sub. Rig crew had difficulty in breaking out the sub due to over torque. Replace ' with correct length double pin sub and re-install clamps, bails & elevators. Pick up 9 7/8" rock bit and mud motor. DAILY SUMMARY KERB McGEE OLIKTOK POINT I-1 07 Dec 2006 Finish picking up motor, MWD/LWD tools and remainder of BHA. Pick up 42 joints of 5" DP. Test casing to 2500 psi for 30 min. Two surface leaks in the chart recorder assembly. Repair leaks and retest casing. Trip in fom 2096' and tag float collar at 2450'. Drill out float collar and 85' of cement to top of shoe at 2535'. Drill out shoe at 2541' and clean out rat hole to 2573'. Drill 20' into formation with a 9 7/8" bit, 2573' to 2593'. Circulate bottoms up and pull back two stands into shoe. Run formation leak-off test with 9.3 ppg mud -TVD shoe 2072'. Maximum pressure 475 psi with 3 bbls pumped. Leak-off test EMW = 13.7 ppg. Sperry PWD maximum pressure EMW = 13.63 ppg. Directional drill 9 7/8" hole from 2593' to 2985' MD = 2258' TVD. ~ 08 Dec 2006 Directional drill 9 7/8" hole from 2985' to 3715' MD = 2469' TVD. Sperry computers crashed, therefore tripped back to shoe while waiting on repairs. Complete repairs and test equipment. Nabors changing out leaking 4" isolation valve on # 1 mud pump. 09 Dec 2006 Finish repairing 4" isolation valve. Trip in from shoe to 3715'. Hole drag was not a problem nor was there fill. Resume directional drilling of 9 7/8" hole from 3715' to 4085' MD. Sliding needed to maintain 78 deg angle azimuths. Circulate while working on Sperry computer problem to re-establish MWD. Drill from 4085' to 5126' MD = 2694' TVD. 10 Dec 2006 Continue to directional drill 9 7/8" hole from 5126' to 5981' MD. Circulate bottoms up. Pull 10 stand wiper trip from 5981' to 5021' and trip back to bottom without hole problems. Directional drill 9 7/8" hole from 5981' to 6826' MD = 3180' TVD. One thousand seven hundred feet of new hole made in 21 hours for an average penetration rate of 81 ft/hr. I 11 Dec 2006 Continue to directional drill 9 7/8" hole from 6826' to 7014' MD = 3239' TVD. Circulate and condition mud. Pull 10 stands wet - 40 klbs max drag with hole taking proper fill. Finish trip out and start to test BOP's. Note: Bit was under gauge, possibly due to the chert content of the formation drilled. 12 Dec 2006 Finish testing BOP's. Pick up new bit 3 and MWD/LWD equipment and run in hole to 4800'. 13 Dec 2006 Continue tripping in with 9 7/8" bit and motor assembly from 4800' to 6350'. Required 50 klbs down pressure and washing to get the pipe through a tight hole section at 5600'. Wash and ream under gauge hole from 6350' to bottom at 7014'. Work through hard spot at 6820' -stalled motor. Directional drill 9 7/8" hole from 7014' to 8200' MD = 3643' TVD for a total of 1186' new hole made in 19.5 hours at an average drill rate of 61 ft/hr. Encountered three areas of potential interest: 7410' to 7445' MD -had an increase of 150 units; Gas peaked at 400 units between 8082' to 8100' MD and 8210' to 8218' MD encountered a peak of 954 units. 2 DAILY SUMMARY KERB McGEE OLIKTOK POINT I-1 1 14 Dec 2006 Continue directional drilling of 9 7/8" hole from 8200' to 8839'. Sperry computers down, reboot & troubleshoot problem. Directional drill 9 7/8" bore hole from 8839' to 8990' _ 3912' TVD, which is the total depth of the hole. Encountered two additional areas of interest: 8310' to 8337' where gas peaked at 1991 units, and the OA sand from 8708' to 812' where gas peaked at 2134 units. Free oil was noted at the shakers and abundant oil 1 observed in samples. An additional 790' new hole was drilled in 17.5 hours for an average rate of penetration of 45.1 ft/hr. Pump 30 bbls HiVis sweep, weighted to 11.6 ppg. This sweep increased cuttings seen at shakers by 10%. Pump slug and trip out to 7000'. The is hole in good condition. Maximum over pull recorded during trip, 30 klbs. 15 Dec 2006 Run in hole from 7000' back to bottom at 8990' - no hole problems or fill. Circulate three bottoms up at 600 gpm and 2900 psi with a mud wt of 9.6 ppg. Trip out to shoe at 2541'. Work through tight spot at 6020 bit depth / 5200' ghost reamer depth. Trip back in hole to 5560', fill pipe & break circulation. Work on pipe slips and iron roughneck. Run in hole to bottom at 8990' without hole problems and no fill. Circulate three bottoms up at 100 rpm (max on motor), 650 gpm (max on MWD tool), and 3200 psi pressure and mud weight of 9.7 ppg. Dollar size pieces of coal and increase in amount of cuttings result. This was more than while drilling or previous circulations. Pull out of hole at 8660'. 16 Dec 2006 Pull out of hole from 8660'. Stand back MWD/LWD tools and lay down motor. Pick up Baker Atlas RCI tools. Repair top drive and change out saver sub. Continue to pick up Baker Atlas RCI tools and test tools. Run in at 1 min/std. Break circulation and blow down top drive. Hang Baker wireline sheave in derrick. Continue to run in hole. 17 Dec 2006 Rig up Baker Atlas sheave in derrick. Run in hole with DP conveyed Baker RCI tools from 2541' to 8274'. Make up Baker side entry sub and run wireline wet connect -unable to connect to RCI tools. Pull and inspect wet connect tool - no damage found. Run wireline and make second attempt to latch without success. Pull wireline & rig down. Trip into the hole to 8785' to maintain bore hole condition. Pull to inspect RCI tools. Break down cross over and wet connect on RCI tool. Found 1" brass valve wedged in top of wet connect tool. Brass valve was from hydraulic oil tank on top drive that was damaged while picking up Baker RCI tools. Redress tools, make up and attempt to test wet connect. Troubleshoot problem. Change out 2 tools & retest. 18 Dec 2006 ' Continue to troubleshoot Baker RCI and re-test tool at surface. Run in hole to 8279' with Baker RCI tools on 5" drill pipe to 8279'. Rig up Side Entry Tool and run wireline and latch wet connect. Continue to trip in with 5" drill pipe from 8279' to 8786'. Correlate depth with Gamma. Set Baker Atlas packers between 8786' to 8779'. Start pumping to clean up hole prior to taking samples. Circulate mud at 2 bpm for 5 min every 1/2 hour. 1 DAILY SUMMARY KERB McGEE OLIKTOK POINT I-1 ^ 19 Dec 2006 Continue pumping RCI tool, pumped a total of 180 liters of fluid in 18 hours. Lost communication with tool, down hole failure, attempts to reconnect to tool unsuccessful. Tried pull pipe to side entry sub to unlatch wireline. Pipe would not move initially. Continue to work pipe until free. Circulate hole clean. Trip out to side entry sub. Unlatch wireline and pull out of hole with RCI tool. Lay down MWD/LWD tools. Continue to trip out of hole with drill pipe and RCI tools. 20 Dec 2006 Rig up and test BOP's. Pick up new MWD tools and make up bottom hole assembly. Trip to the shoe at 2541'. Slip and cut 100' drill line. Run in hole. Circulate and wash tight spots at 5725' and 8387'. Pump HiVis sweep. Circulate last four stands to bottom. Circulate three bottoms up. 21 Dec 2006 Circulate bottoms up. Pump Sweep. Circulate bottoms up at 100 spm with max gas of 37 units and a mud density of 9.7 ppg. MAD Pass at 40 rpm and 185'/hr: From 8940' to 8660' = 280' - 02:00 to 04:00 hrs From 8570' to 8060' = 510' - 04:40 to 09:00 hrs ^ From 7690' to 7230' = 460' - 10:45 to 14:30 hrs Trip tools out of hole. 22 Dec 2006 Pull out of hole and download LWD tools. Test 2 1/16 ",10K isolation valve on choke manifold. Rig up Baker wireline tools and trip in with Baker RCI tools to 8275'. Run wireline and latch onto wet connect. Meter checks showed a short circuit on line 3 and an open circuit on line 2. Pull wireline to change out latch tools. Pulled wet connect and found short in line 3 -latch assembly, change out same. Run wireline and attempt to latch ', ~ three tries. Continued problem with line 2. Pull wireline. Pull out of hole to find short in wet connect. 23 Dec 2006 Pull out of hole from 8275' and change out Baker Tools. Run in hole to 8275'. Make up Side entry wireline sub. Run wireline -latched onto tool. Run in hole with drill pipe to 8785'. Test Gamma - no communication. Pull wireline to side entry sub and pull wireline to surface to re-head latch tool. Run in with wireline and latch into wet connect -tool operating properly. Run in hole with drill pipe to 8785'. Inflate packer with 50 litres and 1060 psi. Pump fluid between isolation packers. 24 Dec 2006 Set Baker test packer at 8789' MD. Pump filtrates and monitored losses. Loss packer seal from power brown-out. Reset packer. Pumped filtrates and took samples. Released the pressured straddle packer, trip out and took down hole pressure test at 8785', 8772', 8743', 8721', 8712' and 8697'. Trip out with drill pipe to 8275'. Lay down wireline side door entry sub. Mix and pump pill. Trip out with drill pipe and RCI tools to 2487'. Trip out with with RCI tools. DAILY SUMMARY KERB McGEE OLIKTOK POINT I-1 25 Dec 2006 Lay down BHA. Lay down Baker tools and retrieve samples. Clear Floor. Pick up BHA. Trip in to 2409'and slip/cut 100' of drill line. Trip in to bottom. Circulate two bottoms up. Pull out of hole and lay down BHA. Rig up to pick up 3-1/2" tubing. 26 Dec 2006 Rig up and pick up 63 joints 31/2 "tubing and stand back in derrick. Trip in hole with 2 7/8" tubing, make up 2-7/8" cross over to 5" drill pipe and run in hole with 5" drill pipe and tubing to 8990'. Circulate bottoms up and run cement plug. Drop foam ball and circulate bottoms up 27 Dec 2006 Change out head pin. Continue to circulate bottoms up at 8400' with 1100 psi. Pressures cement test lines to 2500 psi. Plug # 2 -with tail at 8400'. Pump plug number 2 and displace. Trip out to 7800'. Pump foam drill pipe wiper ball. One barrel of cement returned. Pull out of hole six more stands. Circulate bottoms up at 7800'. Plug # 3 -with tail at 7800'. Pump cement plug #3 and displace with 120 bb! mud. Trip out to 7000'. Pump foam wiper ball and circulate bottoms up. Observed about 3 barrels cement returns. Break out head pin. Circulate bottoms up and trip out of hole. Finish tripping out with 2- 7/8" tubing and stand back. Rig down 2 7/8" tubing equipment. Pull wear ring. Drain down stack and install test plug. Test BOP's at 5000 psi high and 250 psi low. Rig Down test equipment. 28 Dec 2006 Make up 9 7/8" bit. Tripped in hole with the 9 7/8" bit and tagged hard cement at 7262' with 20K lbs. Procedure witnessed by the AOGCC representative. Break circulation and circulate bottoms up. Pull out of hole. Run in hole with 2 7/8" tubing and 5"drill pipe to 3141'. Run cement plug and trip out to 2341'. Circulate bottoms up. Trip out of hole and make up a 9 7/8" bit and casing scraper. Begin to trip back into the hole. 29 Dec 2006 Continue to trip in hole with 9-7/8" bit and casing scraper to 2344'. Make up top drive, circulate and rotate to 2449'. Trip out of hole to pick up a 103/ "EZSV. Make up EZSV and trip in to set EZSV packer at 2441'. Make up head pin with hose. Pump and displace cement plug. Pull 2 stands to 2260' and drop wiper ball. AOGCC rep Chuck Scheve waived cement plug test, witnessed by Gary Goerlich. Circulate bottoms up. Rig up to test casing. Test casing to 1500 psi for 15 minutes. Pump dry job and rig up to lay down 5" DP. Pull out of hole and lay down 51 joints 5" drill pipe and Halliburton running tool. Lay down 42 joints 5" drill pipe out of derrick. Move HWDP to Drillers side of derrick. Pull wear ring. Rig up and trip in with 1,992' of 3'/z" tubing. Make up tubing hanger. DAILY SUMMARY KERB McGEE OLIKTOK POINT I-1 30 Dec 2006 Land the 3%2" tubing. Lock down hanger and test to 5,000 psi. Nipple down BOP's. Clean top of wellhead. Set tree and tighten bolts. Rig up and test wellhead pressure, low 500 psi/high 5000 psi. Test tree pressure, low 500 psi/high 5000 psi. Rig up to freeze protect with 186 bbls diesel. 31 Dec 2006 Attempt to pump diesel for freeze protect. Pop off on pump #1 was open and accidentally pumped 20 bbls diesel into pit #5. Shut down pump and reset pop off. Resume pumping. Shut down pump clean floor of diesel with absorbent. Call ACS and HSE to rig floor. Make up high pressure hose to discharge side of pump to pump direct to wellhead. Had vac truck suck out 20 bbls diesel from pit #5 to reuse in displacement. Found stand pipe in cellar to be frozen, ran hose to well head. Pump/circulate diesel for freeze protection. Sperry Sun mud loggers released. 6 ' 181DAILY ACTIVITY (LA.D.C.) Kerr McGee Oliktok Point I-1 ' 3_ DAILY ACTIVITY ~I_A_D_C_~ Time Elapsed Code Operations Breakdown (hrs) Time t 11-29-2006 06:30-07:30 1.00 6 Make up bit 8~ associated subs. 07:30-08:00 0.50 21 Surface test diverter stack 8~ mud lines. Blow down top drive. 08:00-10:30 2.50 6 Make up bit 8 motor smart tools & orient same. 10:30-13:30 3.00 2 Control drill 75' to 90'. Circ hole clean. 13:30-15:30 2.00 6 POOH re-orient BHA. 15:30-16:30 1.00 6 RIH to 90'. 16:30-17:30 1.00 2 Drill 90' to 182'. 17:30-19:00 1.50 6 Set back 1 sand ~ HWDP. Pick up jars & RIH. 19:00-24:00 1.00 2 Directional drill 13.5" hole from 182' to 573'. 11-30-2006 00:00-24:00 24.00 2 Drilled Directional drill 13.5" hole from 573' to 2355'. Pump sweeps as needed. Take directional surveys every stand. 12-01-2006 00:00-02:00 2.00 2 Directional drill 13.5" hole from 2355' to casing point at 2573' MD/2072' TVD. Note: Bottom of permafrost 2091' MD/1815' TVD. 02:00-03:30 1.50 5 Circ 8~ Cond Mud. 03:30-07:00 07:00-09:30 3.50 8 2.50 6 Fix top drive grabber -bit backed out of saver sub. POOH from 2573' to 2400' with 45 Klbs over pull. Backream 8~ pump out from 2400' to 1785' with max drag of 65 Klbs. Pre-tour safety meeting. 09:30-10:30 1.00 6 RIH from 1785' to 2545', wash 8~ ream from 2545' to 2573'. 10:30-13:00 2.50 5 Circ 2 bottoms up & pump 50 bbls Hi Vis sweep 8~ circ hole clean. ' 13:00-20:00 7.00 6 POOH to 2289' -tight & swabbing with 40 Klbs over pull. Back ream 575' & blow down top drive. POOH to 215' with BHA. Stand back flex collar. Lay down mud motor. Pre-Tour safety ' 20:00-23:00 3.00 5 meeting. Lay down bails, elevators ~ rig up to run casing. PJSM. 23:00-24:00 1.00 5 RIH with 10 3/4" csg. Baker lock shoe. 12-02-2006 00:00-07:00 7.00 5 RIH with 61 jts 10 3l4" (2541') 45.5# L-80 csg with BTC connx. Land csg with shoe @ 2541' MD/2057' TVD & Float collar @ 2456'. No mud losses while running csg. 07:00-08:00 1.00 12 Rig down Franks csg fill up tool &csg tools. Blowdown top 08:00-10:00 1.00 5 drive. Rig up Howco cmt head. Stage up mud pump to max rate of 9 bpm with 500 psi. No mud losses while circ. Max bottoms up gas 123 units. Hold pre cmt job safety meeting. 10:00-13:30 3.5 12 Pump 5 bbls water 8~ pressure test lines to 4000 psi. Pump 50 bbls Alpha spacer @ 10 ppg. Drop plug. Mix ~ pump lead slurry ' 334.6 bbls (453 sx) Permafrost L cmt @ 10.7 ppg yield 4.15 ft3/sk (1880 ft3) mix water 20.3 gal/sk Mix 8~ pump tail slurry of 46.3 bbls (225 sxs) Premium G cmt @ 15.8 ppg yield 1.15 ft3/sk (259 ft3) mix water 5 gal/sk. Drop top plug 8~ displace with 10 bbls water 8~ switch to rig pumps ~ continue dispacing with 229 bbls ' mud. Bump plug with 1000 psi -floats held OK & cmt back @ surface. 13:30-17:00 3.30 14 Flush stack 8 surface equipment. Rig down same. Lay down landing joint 8~ clean up floor. 1 17:00-24:00 7.00 14 Nipple down diverter stack. 12-03-2006 00:00-11:00 11.00 14 Nipple down diverter system 11:00-18:00 7.00 14 Nipple up & test multi bore wellhead to 5000 PSI for ten minutes. Nipple up 11 5/8" x 13 5l8" drilling spool, 24" drilling spool, 41" drilling spool & set stack. Clean pits & change shaker screens. RKB to top Vetco WH 31.6'. Top Vetco WH to AMSL 21.5'. 18:00-00:00 6.00 14 Change out 2" Oteco kill valve. Make up choke kill line 8< tighten all BOP bolts. 12-04-2006 00:00-14:00 14.00 14 Nipple up BOP's 8~ replace IBOP in top drive. ' 14:00-24:00 10.00 15 Rig up test lines & fill stack. Tes 5" pipe rams -upper to 250/ 3000 psi. Test annular to 250/300 psi. Test choke manifold, HCR ' 1 DAILY ACTIVITY (LA.D.C.) Kerr McGee Oliktok Point I- ' Time Elapsed Code Operations Breakdown (hrs) Time & kill valve to 250/3000 psi. Test TIW & IBOP on top drive 250/ 3000 psi. Test HZS gas alarms & pit level alarms. Jeff Jones ' (AOGCC) on location to witness all tests. 12-05-2006 00:00-03:00 3.00 15 Finished testing BOPs. Tested blind rams & Lower 3 '/2" x 6" VBR to 250/3000 psi. LEL methane gas detectors on bell nipple failed to operate -replace 8~ retested OK. Accumulator drawdown test (1400 psij failed due to leaking 4 way valve on Koomey for annular. 03:00-05:00 2.00 15 Rig down test equipment. 05:00-09:00 4.00 9 Slip 13< cut 100' drilling line. Service top drive & blocks. 09:00-16:00 7.00 6 Change out bails 8 elevators. Rig up to handle BHA. Lay down 8" BHA from Derrick. 16:00-24:00 8.00 8 Repair broken chain on lay down skate. Finished repairs @ 00:00 hrs prepare to pick up 5" DP. Replace annular 4 way valve on Koomey unit & replace bladders in 2 bottles on Koomey 20:00 hrs. Pressure Accumulator system back to 3200 psi & perform drawdown test - 1550 psi (Good test). 12-06-2006 00:00-08:00 8.00 6 Pick up 5" Drill pipe & rack back in derrick. 08:00-08:30 0.50 8 Repair faulty switch on lay down Skate. 08:30-11:30 3.00 6 Pick up 5" DP 8~ rack back in derrick. 11:30-12:00 0.50 8 Repair short in wiring on Skate control panel. ' 12:00-13:00 1.00 6 Pick up 5" DP. Total 219 jts picked up in 12 hrs with avg of 18 jts /hr). 13:00-22:00 1.00 8 Remove bottom clamps on top drive & remove double pin sub. Rig had difficulty in breaking out sub due to being overtorqued. Replace with correct length double pin sub 8< re-install clamps, bails 8. elevators. 22:00-24:00 2.00 6 Pick up 9 7/8" rock bit ( MXL-1V ), 7" Sperry 7/8 motor with 1.5 deg bend, 9 1/2" near bit IBS 8< MWD tools. 12-07-2006 00:00-02:00 2.00 6 Pick up motor &MWD tools. 02:00-03:30 1.50 6 Plug in & downlink to MWD tool. 03:30-04:30 1.00 6 Make up Batt tool & flex. 04:30-05:00 0.50 6 PJSM for Nukes & install same. 05:00-06:00 1.00 6 Pick up flex collars & RIH with HWDP. 06:00-07:00 1.00 6 PJSM -Rig safety meeting & pick up ghost reamer. 07:00-09:00 2.00 6 Singled in 42 jts of 5" DP. Move 4 stds HWDP to other side Derrick. 09:00-11:00 2.00 5 Shallow test MWD @2096'. 11:00-13:00 2.00 21 Test csg to 2500 psi for 30 min. Had two surface leaks on chart recorder. Repair & retest csg to 2500 psi. Test Ok. Rig down lines & blow down kill line. 13:00-14:00 1.00 21 Held Nabors safety meeting with rig crew, John Hanes & Tim Worhtington. 14:00-14:30 0.50 6 RIH from 2096' & tag up float collar @ 2450'. 14:30-15:30 1.00 21 Drill out float collar @ 2450' & 85' cmt to top of shoe @ 2535'. 15:30-17:00 1.50 8 Circ while repairing stroke counters on super choke. 17:00-1,7:30 0.50 21 Drill out shoe @ 2541' & clean out rat hole to 2573'. 17:30-18:00 0.50 2 Drill 20' new 9 7/8" hole from 2573' to 2593'. 18:00-19:00 1.00 5 Circ bottoms up & pull back 2 stds into shoe. 19:00-19:30 0.50 21 LOT with 9.3 ppg mud. TVD shoe 2072'. Max pressure 475 psi with 3 bbls pumped EMW = 13.7 ppg. Sperry's max pressure/ EMW = 13.63 ppg. 19:30-00:00 4.50 2 Directional drill 9 7/8" hole from 2593' to 2985' MD/2258' TVD. 12-08-2006 00:00-12:30 12.50 2 Directional drill 9 7/8" hole from 2985' to 3715' MD/2469' TVD - 730' new hole made in 12 1l2 hrs Avg 58.4' Hr. 12:30-13:30 1.00 21 Serry computers crashed. Unable to drill ahead without directional data. Circulate while troubleshooting problem. 13:30-15:00 1.50 21 POOH from 3715' into shoe @ 2541' - No hole problems. 15:00-18:00 3.00 21 Wait on & replace Sperry computers. Nabors repairing stroke counters 8~ standpipe pressure guages. Unable to work on # 1 mud pump due to leakey mud pump isolation valve. Start valve change out. Sperry ready to pump up test survey to verify computers working at 18:00 hrs. 2 DAILY ACTIVITY (LA.D.C.) Kerr McGee Oliktok Point I- Time Elapsed Code Operations Breakdown (hrs) Time 18:00-24:00 6.00 8 Nabors continuing to change out 4" isolation valve on # 1 mud pump. 12-09-2006 00:00-01:00 1.00 8 Finish repairing 4" isolation valve on # 1 mud pump & test same. 01:00-02:30 1.50 21 Test Sperry computer. Pump up survey from MWD. RIH from shoe to 3715'. No hole problems or fill. 02:30-09:30 7.00 2 Directional drill 9 7/8" hole from 3715' to 4085' MD. Slide as needed to maintain 78 deg angle & Az. 09:30-10:30 1.00 21 Circulate while working on Sperry computer problem to re- establish MWD. 10:30-24:00 13.5 2 Directional drill 9 7/8" hole from 4085' to 5126' MD/2694' TVD. 1411' new hole made in 20.5 hrs Avg 69 ft/hr. 12-10-2006 00:00-10:00 10.00 2 Directional drill 9 7/8" hole from 5126' to 5981' MD. 10:00-11:00 1.00 5 Circulate bottoms up. 11:00-13:00 2.00 6 Pull 10 std wiper trip from 5981' to 5021'. No hole problems. Trip back to bottom with no hole problems. 13:00-24:00 11.00 2 Directional drill 9 7/8" hole from 5981' to 6826' MD/3180' TVD. 1700' new hole made in 21 hrs Avg ROP 81 ft/hr. 12-11-2006 00:00-04:00 4.00 2 Directional drill 9 7/8" hole from 6826' to 7014' MD/3239' TVD. 188' new hole made in 4 hrs at an avg ROP of 47 ft/hr. 04:00 06:00 2.00 5 Pump Hi-Vis sweep &circ bottoms up. Slight increase in cuttings observed @ shakes on bottoms up. 06:00-13:00 7.00 6 POOH for bit & test BOP's. Pull 10 stds wet - 40 klbs max drag with hole taking proper fill. Pump slug & continue POOH to BHA. 13:00-16:30 3.50 6 Pull BHA to MWD. Took 2 hrs to recover lost stand HWDP across derrick, 16:30-20:30 4.00 6 Hold prejob safety meeting 8: recover nukes. Download memory from Sperry tools. 20:30-21:30 1.00 6 Lay down motor & bit. Bit 4-5-WT-A-E-1/4 out-ER-bit hrs. 21:30-23:00 1.50 15 Pull Vetco Wear bushing. No abnormal wear. Run Vetco test plug. Fill stack with water 8: close Blind rams. 23:00-24:00 1.00 15 Install 3 accumulator bottles with new bladders 8< charge same. Start Testing BOP's. 12-12-2006 00:00-08:30 8.50 15 08:30-10:30 2.00 15 10:30-11:00 11 :00-12:30 12:30-16:30 16:30-19:30 19:30-21:30 21:30-22:00 22:00-24:00 12-13-2006 00:00-02:00 02:00-04:30 04:30-24:00 0.50 1 .50 4.00 3.00 2.00 0.50 2.00 8 6 6 6 6 5 6 Test BOP's. Test upper 5" pipe rams, lower 3 Yz" x 6" VBR, blind rams & annular to 250/3000 psi for 5/15 min. Test all 16 valves on choke manifold, HCR & Kill valves 250/3000 psi for 5/15 min. Tested TIW, Grey & Top Drive IBOP to 250/3000 psi for 5 min. Perform accumulator draw down test. System 3200 psi. After closure 1600 psi Lou Grimaldi gave permission to start BOP test without AOGCC agent present @ 18:00 hrs 12/11/06 All tests charted. Lay down test joint. Remove test plug. Install Vetco wear ring. Blow down choke & kill lines. Repair skate. Sperry MWD tools due to low battery life. Pick up new 9 7/8" bit (MX-1 ), new motor with 1.5 deg bend, & MWD tools. Download to Sperry MWD & sonic. Hold prejob safety meeting & load Nukes. Continue RIH to below shoe @ 2550'. Shallow test MWD 8< circ 15 min. Blow down top drive. Continue RIH. 2.00 6 Continue RIH with 9 7/8" bit 8: motor assembly from 4800' to 6350'. Took 50 klbs down @ 5600' -washed thru. 2.50 3 Wash & ream undergauge hole from 6350' to bottom @ 7014'. Work thru hard spot @ 6820' -stalled motor. 19.5 2 Directional drill 9 7/8" hole from 7014' to 8200' MD/3643' TVD. 1186' new hole made in 19.5 hrs. Avg ROP 61' hr. 12-14-2006 00:00-15:00 15.00 2 Directional drill 9 7/8" hole from 8200' to 8839'. 15:00-15:30 0.50 21 Sperry computers down. Reboot & troubleshoot problem. 3 DAILY ACTIVITY (LA.D.C.) Kerr McGee Oliktok Point I- Time Elapsed Code Operations Breakdown (hrs) Time 15:30-18:00 2.50 2 Directional drill 9 7/8" hole from 8839' to 8990' - TD MD/3912' TVD - 790' new hole made in 17.5 hrs avg ROP 45.1 ft/hr. 18:00-22:00 4.00 5 Pump 30 bbls Hi-Vis weighted 2 ppg over sweep 8< circulate x bottoms up 10% increase in cuttings seen @ shakers from sweep. 22:00-24:00 2.00 6 Pump slug & POOH to 7000'. Hole in good condition. Max o'pull 30 klbs. Hole took proper fill. 12-15-2006 00:00-01:00 1.00 6 RIH from 7000' back to bottom @ 8990'. No hole problems. No. fill. 01:00-03:30 2.50 5 Circ 3 x bottoms up at 600 gpm & 2900 psi with a mud wt of 9.6 PP9• 03:30-11:30 8.00 6 POOH to shoe @ 2541' SLM pipe out. Worked thru tight spot @ 6020 bit depth / 5200' ghost reamer depth. 11:30-15:30 4.00 9 Slip & cut 100' drill line & service rig. 15:30-17:00 1.50 6 Trip back in hole to 5560'. No hole problems. 17:00-17:30 0.50 2 Fill pipe & break circ. Work on pipe slips & iron roughneck 17:30-20:00 2.50 6 Continue RIH to bottom @ 8990'. No hole problems & no fill. 20:00 23:30 3.50 5 Circ 3X bottoms up at 100 rpm (max on moto), 650 gpm (max on MWD tool), 3200 psi pres & mud wt of 9.7 ppg. Dollar size pieces of coal & increase in amount of cuttings, i.e. more than while drilling or previous circulations. 23:30-24:00 0.50 6 Pump slug & blow down top drive. POOH. 12-16-2006 00:00-08:00 8.00 6 Continue POOH from 8660' 250'. No hole problems. Hole took proper fill. 08:00-10:30 1.50 6 PJSM 8~ remove nukes & down link MWD memory data. 10:30-11:30 1.00 6 Stand back MWD tools & lay down motor & bit. Bit 1-1-W -A-E- 1 /1 6-ER-TD. 11:30-13:00 1.50 11 Clear rig floor & hold prejob safety meeting. Start to pick up Baker Atlas RCI tools. 13:00-17:30 4.50 8 Repair top drive & change out saver sub. 17:30-19:30 2.00 11 Continue to pick up Baker Atlas RCI tools & test same. Total length tools 131.08' -max OD on packer 6.25". 19:30-22:30 3.00 6 Make up XO & RIH with 6 stds 5" HWDP, XO, 7 3/4" jars (2 3/4"), 5" DP to shoe. Running @ 1 min/std. 22:30-24:00 1.50 11 Break circulation & blow down top drive. Hang Baker wireline sheave in derrick. 12-17-2006 00:00-01:30 1.50 11 01:30-02:30 1.00 8 02:30-06:00 3.50 6 06:00-10:30 4.50 11 10:30-14:30 4.00 11 14:30-15:00 0.50 6 15:00-21:00 6.00 6 21:00-22:00 1.00 6 22:00-24:00 2.00 11 12-18-2006 00:00-01:00 1.00 11 01:00-08:00 7.00 6 08:00-10:00 2.00 11 Rig up Baker Atlas sheave in derrick. Repair leakey hydraulic lines on iron roughneck. RIH with DP conveyed RCI tools from 2541' to 8274'. Make up Baker side entry sub & RIH with wireline wet connect - unable to connect to RCI tools. POOH with wireline & inspect wet connect tool - no damage found. RIH with wireline & make second attempt to latch without success. Pull wireline & rig down. RIH to 8785' to ensure hole in good condition. POOH to inspect RCI tools. Break down cross over & wet connect on RCI tool. Found 1" brass valve wedged in top of wet connect tool. Brass valve was from hydraulic oil tank on top drive that was damaged while picking up Baker RCI tools. Redress tools & make up & attempt to test wet connect. Troubleshoot problem. Change out 2 tools & retest. Continue to troublshoot RCI & retest at surface. TIH with Baker RCI tools on 5" DP to 8279'. Rig Up Side Entry Tool & RIH with wireline & latch wet connect. RIH with 5" DP from 8279' to 8786'. Correlate depth with GR. Set Baker Atlas packers 8786' to 8779'. Start pumping to clean up prior to taking samples. Rig circulating @ 2 bpm for 5 min every 1/2 hr. 10:00-11:30 1.50 6 ' 11:30-24:0012.50 11 J 4 DAILY ACTIVITY (LA.D.C.) Kerr McGee Oliktok Point I- 1 Time Elapsed Code Operations Breakdown (hrs) Time 12-19-2006 00:00-06:00 6.00 11 06:00-08:00 2.00 11 08:00-11:00 3.00 11 11:00-17:00 6.00 11 17:00-19:00 2.00 11 19:00-21:00 2.00 O6 21:00-24:00 3.00 15 12-20-2006 ' 00:00-06:00 6.00 15 06:00-11:00 5.00 6 11:00-15:00 4.00 6 15:00-17:00 2.00 9 17:00-22:30 5.50 5 Continue pumping RCI tool. Pump a total of 180 liters of fluid in 18 hours. Lost communication due to downhole failure. Attempts to reconnect to tool unsuccessful. Tried to POOH to side entry sub to unlatch wireline. Pipe would not move initially. Continue to work pipe unfit free. Circulate hole clean. POOH to side entry sub. Unlatch wireline & POOH to surface. repare to POOH with pipe & RCI tool. POOH DP 8. RCI tool to surface. Lay downe tools. LD MWD Tools. Test BOP's. Rig up for BOP Tests. Test annular to 250-3000 psi, rams 250- 5000, Valves 250-5000. Rig down test equipment. Set wear ring. Rig up to blow down all surface equipment. PJSM. Pick up new MWD tools & make up BHA. RIH to Shoe at 2541'. Slip & cut 100' drill line & service rig. Check crown-o-matic. RIH. Ream as necessary to TD. Circulate 8< wash tight spots at 5725' & 8387'. Pump Hi Vis sweep. Circulate last 4 stds to TD. Circulate three bottoms up. ' 22:30-24:00 1.50 5 12-21-2006 00:00-02:00 2.00 5 ' 02:00-14:30 12,5 21 14:30-19:00 4.50 6 19:00-20:30 1.50 7 20:30-22:30 2.00 6 ' 22:30-22:45 0.25 21 22:45-24:00 1.25 6 12-22-2006 00:00-01:30 1.50 6 01:30-02:30 1.00 6 02:30-03:30 1.00 8 03:30-04:30 1.00 15 ' 04:30-05:30 1.00 6 05:30-08:30 3.00 11 08:30-18:00 9.50 11 18:00-20:00 2.00 11 20:00-21:00 1 00 11 . 21:00-22:00 1.00 11 ' 22:00 23:00 1.00 11 23:00-24:00 1.00 11 Circulate bottoms up. Pump Sweep. Circulate bottoms up @ 100 spm, 10 bbls/min, max gas 37 units, mud 9.7 ppg. MAD Pass @ 40 RPM, Speed 185'/hr. From 8940' to 8660' = 280' - 0200 to 0400 From 8570' to 8060' = 510' - 0440 to 0900 From 7690' to 7230' = 460' - 1045 to 1430 40 RPM, 185 GPM; PU - 230K; ROT - 155K; SO - 120K POOH 7240' to shoe at 2541'. PJSM, Service top drive. POOH. Lay down single. POOH to Flex DC. Lay down same.- found rabbit at top of flex DC. PJSM for Nukes. POOH & remove Nukes. POOH - Download MWD. Lay down MWD\LWD tools. Pull wear ring & set test plug. Test 2-1/16" 10K isolation valve on choke manifold, 250 low - 5000 hi for 5 mins. Rig down test equipment 8~ blow down. Pull test plug & set wear ring. Rig up Baker wireline tools. RIH with RCI tools to 8275'. RIH with Wireline. Latch onto wet connect. Line 2 open. powered up all tool modules -Communications was OK. When applying high voltage for hydraulic pump high current was observed. Meter checks showed a short circuit on line 3 & an open circuit on line 2. Pull wireline to change out latch tools. Pull wet connect & found short in line 3 - latch assembly. Chang out same. Run wireline & attempt to latch 3 times. Same line 2 open. Pull wireline. Lay down same. Pump slug, POOH with DP to find short in wet connect. 12-23-2006 00:00-03:00 3.00 6 Monitor well. Pump dry job. POOH from 8275' to 2409'. 03:00-04:00 1.00 6 Monitor well & adjust elevators. 04:00-05:30 1.50 6 POOH to surface. 05:30-06:30 1.00 11 Lay down Baker tools. 06:30-07:30 1.00 11 Make up Baker tools. 07:30-13:00 5.50 6 RIH. ~ ' DAILY ACTIVITY (LA.D.C.) Kerr McGee Oliktok Point I- Time Elapsed Code Operations Breakdown (hrs) Time 13:00-14:00 1.00 11 ' 14:00-16:00 2.00 6 16:00-17:00 1.00 11 17:00-18:00 1.00 6 18:00-20:30 2.50 11 20:30-21:00 0.50 11 21:00-22:00 1.00 6 22:00-23:30 1.50 11 23:30-24:00 0.50 11 12-24-2006 00:00-09:00 9.00 11 09:00-09:30 0.50 11 09:30-11:00 1.50 11 ' 11:00-16:00 5.00 11 16:00-19:30 3.50 11 19:30-20:00 0.50 6 20:00-20:30 0.50 11 20:30-23:00 2.50 6 23:00-24:00 1.00 6 Make up Side entry wireline sub. RIH with wireline - latched onto tool. RIH with DP to 8785'. GAMA test, no communications. POOH with wireline to side entry sub. POOH with wireline. Re-head latch tool. RIH with wireline. Latch onto wet connect. Tool working. RIH with DP to 8785'. Inflate packer with 50 liters, 1060 psi. Pump out fluid between isolation packers. Baker test well, packer set at 8789'. Pump filtrates. Monitor losses. Lost packer seal from power brown-out. Reset packer. Pumd filtrates & took samples. Released pressure on straddle packer. POOH & took downhole pressure test at 8785', 8772', 8743', 8721', 8712' & 8697'. POOH with DP to 8275' MD. Lay down wireline side door entry sub. Mix & pump pill. POOH with DP & RCI tools to 2487'. POOH with RCI tools. 12-25-2006 00:00-01:00 1.00 6 PJSM 8~ lay down BHA. 01:00-03:30 2.50 11 Lay down Baker tools 8 retrieve samples. 03:30-4:00 0.50 21 Clear Floor. 04:00-06:30 2.50 6 Pick up BHA. 06:30-07:30 1.00 6 RIH to 2409'. 07:30-10:30 3.00 9 Slip & Cut 100' of drill line. 10:30-15:30 5.00 6 RIH to TD. 15:30-18:00 2.50 5 Circulate 2 bottoms up. 18:00-23:00 5.00 6 Mix 8~ pump pill. POOH. ' 23:00-03:30 0.50 6 Lay down BHA. 23:30-24:00 0.50 6 Rig up to pick up 3-1 /2" tubing. 12-26-2006 00:00-01:30 1.50 6 Rig up to pick up 3-1/2" tubing. 01:30-07:30 6.00 6 Pick up 63 joints 3-1/2" tubing & stand back in derrick. 07:30-12:00 4.50 6 PJSM. Rig up & RIH 30 joints 2-7/8" tubing. 12:00-14:30 2.50 6 Lay down 8 jts 2-7/8" tubing. 14:30-16:30 2.00 6 make up 2-7/8" cross over to 5" DP. RIH to shoe with DP. Break circulation. 16:30-19:30 3.00 6 Continue to RIH with DP to 8990'. 19:30-20:30 1.00 5 Circulate bottoms up at 8 bpm 8< 900 psi. 20:30-21:30 1.00 5 PJSM with cementers while circulating bottoms up. 21:30-22:30 1.00 12 cementers pump 5 bbl water, close valve, test lines to 2500 psi, grease zurk on valve leaked, replaced zurk & retested to 2.500 psi - OK. Mix & pump 301 sks premium cmt, 61.7 bbls at 15.8 ppg, followed by 4 bbls water. Displaced to 8140' with rig pumps 138 bbls, 1380 stks. 22:30-00:00 1.50 6 POOH 6 stds DP. Drop foam ball. Circulate bottoms up. 12-27-2006 00:00-01:30 1.50 8 Change out head pin. Continue to circulate bottoms up at 8400' with 1100 psi. 01:30-03:00 1.50 12 Pressure test lines to 2500 psi. Plug # 2 -with tail at 8400'. Pump 20 bbl water, 63 bbl of 15.8 ppg cement, 4 bbl water behind & displace with 128 bbl mud. POOH to 7800'. Pump foam DP wiper ball. Observed 1 bbl cement return. Pull 6 stands. 03:00-05:00 2.00 5 Circulate bottoms up at 7800' 05:00-06:30 1.50 12 Plug # 3 -with tail at 7800'. Pump 20 bbl water, 63 bbl of 15.8 ppg G cement, 4 bbl water. Displace with 120 bbl mud. POOH to 7000'. Pump foam wiper ball & circulate bottoms up. Observed about 3 bbl cement returns. 06:30-09:00 2.50 5 Break out head pin. Circulate bottoms up 5500 stk. 09:00-12:30 3.50 6 POOH 88 stands 5" DP. Rig up to pick up 2-7/8" tubing. PJSM. 12:30-14:30 2.00 6 POOH with 2-7/8" tubing & stand back. Rig down 2-7/8" tubing equipment. 6 DAILY ACTIVITY (LA.D.C.) Kerr McGee Oliktok Point ~- Time Elapsed Code Operations Breakdown Ihrs1 Time 14:30-15:30 1.00 15 Pull wear ring. Drain down stack, install test plug. 15:30-17:00 1.50 15 Rig up to test BOP. Fill stack. 17:00-23:00 6.00 15 Test BOPS at 5000 psi Hi/250 psi Lo. Had valve #4 leak grease, regreased & retest same - OK. Blind ram door leaked, therefore tightened door, retested - OK. 23:00-00:00 1.00 15 Rig Down test equipment. 12-28-2006 00:00-01:00 1.00 7 01:00-06:00 5.00 6 06:00-07:30 1.50 6 07:30-12:00 4.50 6 12:00-14:30 2.50 6 14:30-17:00 2.50 6 17:00-17:30 0.50 12 17:30-18:30 1.00 12 18:30-19:30 1.00 6 19:30-20:00 0.50 5 20:00-21:00 1.00 6 21:00-23:30 2.50 6 23:30-00:00 0.50 6 12-29-2006 ' 00:00-03:00 0.50 6 03:00-04:30 1.50 6 04:30-05:00 0.50 7 05:00-07:00 2.00 6 07:00-09:00 2.00 12 09:00-10:00 1.00 5 10:00-11:00 1.00 21 11:00-13:30 2.50 6 13:30-15:30 2.00 6 15:30-18:30 3.00 6 18:30-20:30 2.00 21 20:30-23:30 3.00 6 23:30-00:00 0.50 6 12-30-2006 0:00-1:30 1.50 1 1:30-10:30 9.00 1 10:30-11:00 0.50 1 11:00-12:30 1.50 27 12:30-19:00 6.50 12 19:00-20:00 1.00 6 20:00-21:00 1.00 14 21:00-22:30 1.50 14 22:30-0:00 1.50 14 P 0 OH. Adjust draw works brakes. Make up 9-7/8" bit. RIH to shoe & break circulation. Blow down top drive. Continue in hole & tag hard cement at 7262' with 20K lbs. Witnessed by AOGCC rep. Break circulation. Circulate bottoms up - 5400 stk. Pump slug & blow down top drive. POOH from 7262' to surface. Clean floor, Rig up & RIH with 2-7/8" tubing. RIH with 5" DP to 3141'. PJSM with cementers. Pump Hi Vis pill of 18 bbls at 9.9 ppg, 120+ vis. POOH to 3041'. Pump 20 bbls water. Mix & pump 302 sks premium, 61.9 bbls at 15.8 ppg, followed by 5 bbls water. Displaced with rig pump at 35 bbls, 350 stks, 8 bpm, 750 psi. POOH to 2341'. Circulate bottoms up at 8 bpm, 750 psi & a total of 2200 stks, POOH with 5" DP. Rig up to POOH with 2-7/8" tubing -lay down same. Make up 9-7/8" bit & csg scraper. RIH. RIH with 9-7/8" bit & casing scraper to 2344'. Make up top drive, circ 8 rotate to 2449'. Blow down top drive. POOH (26 stands) for 10-3/4" EZSV. Clean rig floor & service top drive. Make up EZSV & RIH with same. Set EZSV packer at 2441'. Safety meeting with cementers. Make up head pin with hose. Pump 20 bbl water, 5 bbl of 15.8 ppg type G Cement followed by 5 bbl water. Displace with 35 bbl mud. Pull 2 stands to 2260' & drop wiper ball. AOGCC rep Chuck Scheve waived cement plug test, witnessed by Gary Goerlich. Circulate bottoms up. Rig up to test casing. Test casing to 1500 psi for 15 minutes. Pump dry job & rig up to lay down 5" DP. POOH -lay down 51 jts 5" DP & Halliburton running tool. Lay down 42 jts 5" DP out of derrick. Move HWDP to drillers side of derrick. Clean rig floor 8< pull wear ring. Rig up 8< RIH with 1,992' of 3-1 /2" tubing. Make up tubing hanger. Land tubing. Lock down hanger & test to 5,000 psi - OK. Clean rig floor, start washing down BOP stack prior to Nipple Down. Note: at 06:00 approximately 20 gals of water 8< water based mud leaked into the cellar, onto & under herculite containment while washing down the BOP stack. Cleanup was complete & immediate. All necessary personnel & agencies were notified in a timely manner. Nipple Down BOP. HSE Meeting. Continue to nipple down BOP. Note: at 16:00 an additional 10 gallons of water based mud melted off the BOP stack & leaked onto & under herculite containment. Cleanup was again complete & immediate. All necessay personnel & agencies were notified. Clean top of wellhead. Set tree & tighten bolts. Rig up & test wellhead pressure, Lo 500/Hi 5000 psi. Test tree pressure, Lo 500/Hi 5000 psi. PJSM. Rig up to freeze protect with 186 bbls diesel. 7 DAILY ACTIVITY (LA.D.C.) Kerr McGee Oliktok Point I- Time Elapsed Code Operations Breakdown (hrs) Time 12-31-2006 00:00-01:00 1.00 14 Attempt to pump diesel for freeze protect. Pop off on pump #1 was open & accidently pumped 20 bbls diesel into pit #5. Shut down pump & reset pop off. Continued to pump. Shut down pump. 01:00-02:00 1.00 14 Clean floor of diesel with absorbent. Called ACS & HSE to rig floor. 02:00-04:30 2.50 14 Make up high pressure hose to discharge side of pump to pump direct to wellhead. Had vac truck suck out 20 bbls diesel from pit #5 to reuse in displacement. Found stand pipe in cellar to be frozen, ran hose to well head. 04:30-06:30 2.00 14 Pump/circulate diesel for freeze protection. 8 Kerr McGee Report # 0 Sperry Oliktok Point Alaska Drilling Services Daily Operations Report WELL: Oliktok Point I-1 RIG: Nabors-245 DATE: 01-Dec-o6 TIME: 2:30:00 AM DEPTH (MD): 500 DEPTH (TVD) : 500 MUD WEIGHT: s.a ECD: CHLORIDES (mg/L): 4s,ooo ESD: Surface FIT: Downhole LWD LOT: PORE PRESSURE: Background GAS: a SURVEY DEPTH: 2as1.o~ Drilling HRS: 5.0 INCL: s2.o1 Cum. HRS: ~.o AZIM: 68.31 Metal Shavings: o Cum. Shavings: o PREVIOUS 12 HOUR SUMMARY LITHOLOGY @ LCM: NP SALT TRIP GAS: CONN GAS: CONN GAS: CONN GAS: CONN GAS: CONN GAS: CONN GAS: BACKGRND GAS: MAX GAS: AVG ROP: GC Depth: I~R(1 / RRFdKC- SH: SLTST: NA SAND NA SST: MRL NA CMT: NA NA UNITS q~ NA MD TVD NA UNITS p~ NA MD NA TVD NA UNITS @ NA MD NA TVD NA UNITS @ NA MD NA TVD NA UNITS p~ NA MD NA TVD NA UNITS @ NA MD NA TVD NA UNITS @ NA MD NA TVD NA UNITS NA NA UNITS @ NA MD NA TVD 0 ft/hr (24 hr) C1= C2= C3 = I-4= N-4= I-5= N-5= INTERVAL DRILL RATE GAS Show/ZOI FROM TO BEFORE DURING AFTER BEFORE DURING AFTER ACTIVITY, PREVIOUS 24 HOURS Drilling ahead PLANNED ACTIVITY Drilling to frist section of hole Engineer: Steve Jenkins Kerr McGee Report # 0 Sperry Oliktok Poinf Alaska Drilling Services Daily Operations Report WELL: Oliktok Poi nt I-1 RIG: Nabors-245 DATE: 02-Dec-os TIME: 2:30:00 AM DEPTH (MD): 2572 DEPTH (TVD) : zo7o MUD WEIGHT: g.a ECD: CHLORIDES (mg/L): 4s,ooo ESD: Surface FIT: Downhole LWD LOT: PORE PRESSURE: Background GAS: o SURVEY DEPTH: 2ag~.o7 Drilling HRS: o.o INCL: sz.ot Cum, HRS: AZIM: sa.3~ Metal Shavings: o Cum, Shavings: o PREVIOUS 12 HOUR SUMMARY LITHOLOGY @ LCM: NA SH: SLTST: NA SAND NA SALT SST: MRL NA CMT: NA TRIP GAS: NA UNITS @ NA MD TVD CONN GAS: NA UNITS @ NA MD NA TVD CONN GAS: NA UNITS @ NA MD NA TVD CONN GAS: NA UNITS @ NA MD NA TVD CONN GAS: NA UNITS @ NA MD NA TVD CONN GAS: NA UNITS @ NA MD NA TVD CONN GAS: NA UNITS @ NA MD NA TVD BACKGRND GAS: NA UNITS NA MAX GAS: NA UNITS @ NA MD NA TVD AVG ROP: o ft/hr (24 hr) GC Depth: C1= C2= C3 = I-4= N-4= I-5= N-5= ARIII RRFdKC- INTERVAL DRILL RATE GAS Show/ZOI FROM TO BEFORE DURING AFTER BEFORE DURING AFTER ACTIVITY, PREVIOUS 24 HOURS 10 3/4 csng. Cement casing PLANNED ACTIVITY cleaning out pits Engineer: Steve Jenkins Sperry Kerr McGee Report # Oliktok Point Alaska Drilling Services DailyOperafionsReporr WELL: Oliktok Point I-1 RIG: Nabors-245 DATE: 03-Dec-os TIME: 2:30:00 AM DEPTH (MD): 2572 DEPTH (TVD) : 200 MUD WEIGHT: s.a ECD: CHLORIDES (mg/L): 4s,ooo ESD: Surface FIT: Downhole LWD LOT: PORE PRESSURE: Background GAS: o SURVEY DEPTH: 24s~.o7 Drilling HRS: o.o INCL: 62.0 Cum. HRS: AZlM: sa.3~ Metal Shavings: o Cum. Shavings: o PREVIOUS 12 HOUR SUMMARY LITHOLOGY @ LGM: NA SALT TRIP GAS: CONN GAS: CONN GAS: CONN GAS: CONN GAS: CONN GAS: CONN GAS: BACKGRND GAS: MAX GAS: AVG ROP: GC Depth: nRlll RRFdKA- SH: SLTST: NA SAND NA SST: MRL NA CMT: NA NA UNITS @ NA MD TVD NA UNITS t7d NA MD NA TVD NA UNITS @ NA MD NA TVD NA UNITS @ NA MD NA TVD NA UNITS @ NA MD NA TVD NA UNITS @ NA MD NA TVD NA UNITS @ NA MD NA TVD NA UNITS NA NA UNITS @ NA MD NA TVD 0 ft/hr (24 hr) C1= C2= C3 = I-4= N-4= I-5= N-5= INTERVAL DRILL RATE GAS Show/ZOI FROM TO BEFORE DURING AFTER BEFORE DURING AFTER ACTIVITY, PREVIOUS 24 HOURS Nipple up BOP. Repair Top Drive. PLANNED ACTIVITY BOP test. Engineer: Steve Jenkins Kerr McGee Report # Sperry Olikfok Poinf Alaska Drilling Services Daily Operations Report WELL: Oliktok Poi nt I-1 RIG: Nabors-245 DATE: o4-Dec-o6 TIME: 5:00:00 AM DEPTH (MD): 3371 DEPTH (TVD) : 2396 MUD WEIGHT: 9.5 ECD: s.~o CHLORIDES (mg/L): a3,ooo ESD: Surface FIT: Downhole LWD LOT: PORE PRESSURE: Background GAS: to SURVEY DEPTH: 32ss.s2 Drilling HRS: tg.o INCL: 74.x3 Cum. HRS: 5.0 AZIM: 80.44 Metal Shavings: o Cum. Shavings: o PREVIOUS 12 HOUR SUMMARY LITHOLOGY 2640-3660 Claystone and shale with occasional interbedded sand from 2830 to 2880. LCM: NA SH: 3o°i° SLTST: NA SAND ~o°i° SALT SST: MRL NA CMT: NA TRIP GAS: NA UNITS @ NA MD TVD CONN GAS: NA UNITS @ NA MD NA TVD CONN GAS: NA UNITS @ NA MD NA TVD CONN GAS: NA UNITS @ NA MD NA TVD CONN GAS: NA UNITS @ NA MD NA TVD CONN GAS: NA UNITS @ NA MD NA TVD CONN GAS: NA UNITS @ NA MD NA TVD BACKGRND GAS: 18 UNITS NA MAX GAS: 36 UNITS @ NA MD NA TVD AVG ROP: t3o fUnr ~2anr~ GC Depth: C1= C2= C3 = I-4= N-4= 1-5= N-5= rfR/ll RRFdKC~ INTERVAL DRILL RATE GAS Show/ZOI FROM TO BEFORE DURING AFTER BEFORE DURING AFTER ACTIVITY, PREVIOUS 24 HOURS Casing and formation leak off test. Repair work on rig. Drill ahead at 5 AM. PLANNED ACTIVITY Drill ahead Engineer: Chuck Stringer Kerr McGee Report # 0 Sperry Oliktok Point Alaska Drilling Services Daily Operations Report WELL: Oliktok Point I-1 RIG: Nabors-245 DATE: o5-Dec-06 TIME: 5:00:00 AM DEPTH (MD): 3371 DEPTH (TVD) : 2396 MUD WEIGHT: 9.5 ECD: s.~o CHLORIDES (mg/L): a3,o0o ESD: Surface FIT: Downhole LWD LOT: PORE PRESSURE: Background GAS: is SURVEY DEPTH: 32sg.s2 Drilling HRS: ts.o INCL: ~a.53 Cum. HRS: 5.0 AZIM: so.aa Metal Shavings: o Cum. Shavings: o PREVIOUS 12 HOUR SUMMARY LITHOLOGY 2640-3660 Claystone and shale with occasional interbedded sand from 2830 to 2880. LCM: NA SH: 30% SLTST: NA SAND ~o% SALT SST: MRL NA CMT: NA TRIP GAS: NA UNITS @ NA MD TVD CONN GAS: NA UNITS @ NA MD NA TVD CONN GAS: NA UNITS @ NA MD NA TVD CONN GAS: NA UNITS @ NA MD NA TVD CONN GAS: NA UNITS @ NA MD NA TVD CONN GAS: NA UNITS @ NA MD NA TVD CONN GAS: NA UNITS @ NA MD NA TVD BACKGRND GAS: 18 UNITS NA MAX GAS: 36 UNITS @ NA MD NA TVD AVG ROP: t3o ft/nr ~2anr> GC Depth: C1= C2= C3 = I-4= N-4= I-5= N-5= DRILL BREAKS= INTERVAL DRILL RATE GAS Show/ZOI FROM TO BEFORE DURING AFTER BEFORE DURING AFTER ACTIVITY, PREVIOUS 24 HOURS Casing and formation leak off test, repair work on rig drill ahead to 5 AM. PLANNED ACTIVITY Drill ahead Engineer: Chuck Stringer Kerr McGee Report# Sperry Oliktok Point Alaska Drilling Services Daily Operations Report WELL: Oliktok Point I-1 RIG: Nabors-245 DATE: 06-Dec-06 TIME: 2:00:00 AM DEPTH (MD): 371s DEPTH (TVD) : lass MUD WEIGHT: 9.5 ECD: 9.72 CHLORIDES (mg/L): 5a,ooo PWD 9.86 Surface FIT: Downhole LWD LOT: PORE PRESSURE: Background GAS: 1a SURVEY DEPTH: 3s77.o3 Drilling HRS: 1s.o INCL: 7x.52 Cum. HRS: 5.0 AZIM: 73.76 Metal Shavings: o TVD 2461.76 Cum. Shavings: o PREVIOUS 12 HOUR SUMMARY LITHOLOGY 3660-3718 Claystone with occasional interbedded sand LCM: NA SH: NA SLTST: NA SAND 50% SALT SST: CLYST 50% CMT: NA TRIP GAS: NA UNITS @ NA MD TVD CONN GAS: NA UNITS @ NA MD NA TVD CONN GAS: NA UNITS @ NA MD NA TVD CONN GAS: NA UNITS @ NA MD NA TVD CONN GAS: NA UNITS @ NA MD NA TVD CONN GAS: NA UNITS @ NA MD NA TVD CONN GAS: NA UNITS @ NA MD NA TVD BACKGRND GAS: 14 UNITS NA MAX GAS: 16 UNITS @ NA MD NA TVD AVG ROP: fUhr (24 hr) GC Depth: C1= C2= C3 = 1-4= N-4= I-5= N-5= DRILL gREAKS~ INTERVAL DRILL RATE GAS Show/ZOI FROM TO BEFORE DURING AFTER BEFORE DURING AFTER ACTIVITY, PREVIOUS 24 HOURS DRILL TO 3718, PULL OUT OF HOLE TO CASING SHOE TO WORK ON SPERRY COMPUTERS AND WORK ON PUMP VALVE, TRIP IN HOLE, CIRC TO BEGIN DRILLING PLANNED ACTIVITY DRILL AHEAD Engineer: DOUG WILSON w S pe r~ Kerr McGee Report # 0 1~' Oliktok Point Alaska ~, Drillin Services Dail O erations Re ort Y p P 9 WELL: DATE: DEPTH (MD): MUD WEIGHT: CHLORIDES (mg/L) Surface FIT: PORE PRESSURE: SURVEY DEPTH: INCL: AZIM: TVD LITHOLOGY Oliktok Point I-1 RIG: Nabors-245 07-Dec-06 TIME: 2:00:00 AM 5350 DEPTH (TVD) : 2749.7 9.5 ECD: 9.80 @ 5300 55,000 PWD 10.06 Downhole LWD LOT: Background GAS: 45 528o.sa Drilling HRS: 75.aa Cum. HRS: 7o.1s Metal Shavings: 0 2731.41 Cum. Shavings: o PREVIOUS 24 HOUR SUMMARY 3718 - 4000 Shales and Siltstones with minor interbedded coals 4000 - 4180 Shale and Siltstone with sand interbed 4180 -4450 Sands interbedded with minor chert fragments beds and minor coal-lignite and clay/siltstone matrix 4450 - 4900 Siltstone with interbedded sandstones, minor coal interbeds 4900 - 5350 Siltstone with interbedded sands LCM: NA SH: 5% SLTST: 55% SAND 3o°r° CHT 5% COAL 5% CLYST NA CMT: NA TRIP GAS: 8o UNITS @ 3718 MD 2470 TVD CONN GAS: NA UNITS @ NA MD NA TVD CONN GAS: NA UNITS @ NA MD NA TVD CONN GAS: NA UNITS @ NA MD NA TVD CONN GAS: NA UNITS @ NA MD NA TVD CONN GAS: NA UNITS @ NA MD NA TVD CONN GAS: NA UNITS @ NA MD NA TVD BACKGRND GAS: 45-50 UNITS NA MAX GAS: 140 UNITS @ NA MD NA TVD AVG ROP: 155 ft/hr (24 hr) GC Depth: C1=14100 C2=0 C3 = I-4= N-4= I-5= N-5= AR/I / RRFdKC- INTERVAL DRILL RATE GAS Show/ZOI FROM TO BEFORE DURING AFTER BEFORE DURING AFTER ACTIVITY, PREVIOUS 24 HOURS DRILL TO 3718-5350 PLANNED ACTIVITY DRILL AHEAD Engineer: DOUG WILSON Kerr McGee Report # Sperry Oliktok Point Alaska Drilling Services Daily Operations Report WELL: Oliktok Point I-1 RIG: Nabors-245 DATE: 08-Dec-06 TIME: 2:00:00 AM DEPTH (MD): 6922 DEPTH (TVD) : 3210 MUD WEIGHT: 9.7 ECD: 10.06 CHLORIDES (mg/L): 51,000 PWD 10.18 Surface FIT: Downhole LWD LOT: PORE PRESSURE: Background GAS: 12 SURVEY DEPTH: ssa5.o8 Drilling HRS: 1a.8 INCL: 72.x7 Cum. HRS: AZIM: s2.os Metal Shavings: o TVD 3198.9 Cum. Shavings: o PREVIOUS 24 HOUR SUMMARY LITHOLOGY 5350 - 5400 Interbedded Sands and Siltstones with minor interbedded coals 5400 - 5560 Siltstone with some interbedded sand. 5560 - 5975 Interbedded Siltstone and Sand. 5930 - 6900 Siltstone with osscasional interbedded sand, claystone, and coal. LCM: NA CHT 5% TRIP GAS: CONN GAS: CONN GAS: CONN GAS: CONN GAS: CONN GAS: CONN GAS: BACKGRND GAS: MAX GAS: AVG ROP: GC Depth: 5442 AAII l RI7RdKC- 5h: 5% COAL 5°i° 80 UNITS NA UNITS NA UNITS NA UNITS NA UNITS NA UNITS NA UNITS 8-33 UNITS 98 UNITS 106 fUhr C1=9800 C2=0 SLTST: 55°i° SAND 3o°i° CLYST NA CMT: NA @ 3718 MD 2470 @ NA MD NA @ NA MD NA @ NA MD NA @ NA MD NA @ NA MD NA @ NA MD NA NA @ 5442 MD 2775 (24 hr) C3 = I-4= N-4= I-5= TVD TVD TvD TVD TVD TVD TVD TVD N-5= INTERVAL DRILL RATE GAS Show/ZOI FROM TO BEFORE DURING AFTER BEFORE DURING AFTER ACTIVITY, PREVIOUS 24 HOURS DRILL 5350-6922 PLANNED ACTIVITY DRILL AHEAD, short trip Engineer: DOUG WILSON Kerr McGee Report# 0 Sperry Oliktok Point Alaska Drilling Services DailyOperafionsReporr WELL: Oliktok Point I-1 RIG: Nabors-245 DATE: 09-Dec-06 TIME: 2:00:00 AM DEPTH (MD): 7014 DEPTH (TVD) : 3239.55 MUD WEIGHT: 9.s ECD: 9.95 CHLORIDES (mg/L): 53,000 PWD 9.47 Surface FIT: Downhole LWD LOT: PORE PRESSURE: Background GAS: 1z SURVEY DEPTH: 6977.18 Drilling HRS: 1a.8 INCL: 71.21 Cum. HRS: AZIM: 59.85 Metal Shavings: o TVD 3227.53 Cum. Shavings: o PREVIOUS 24 HOUR SUMMARY LITHOLOGY 6900 - 701 4 Siltstone with osscasional interbedded sand, and claystone. LCM: NA SH: SLTST: 5o°i° SAND 3o°i° CHT COAL CLYST 20°r° CMT: NA TRIP GAS: UNITS @ MD TVD CONN GAS: NA UNITS @ NA MD NA TVD CONN GAS: NA UNITS @ NA MD NA TVD CONN GAS: NA UNITS @ NA MD NA TVD CONN GAS: NA UNITS @ NA MD NA TVD CONN GAS: NA UNITS @ NA MD NA TVD CONN GAS: NA UNITS @ NA MD NA TVD BACKGRND GAS:. 12 UNITS NA MAX GAS: 19 UNITS @ 7010 MD 3238 TVD AVG ROP: 68 fUhr (24 hr) GC Depth: 7010 C1=1371 C2=0 C3 = I-4= N-4= I-5= N-5= I)Rlll RRFdKt• INTERVAL DRILL RATE GAS Show/ZOI FROM TO BEFORE DURING AFTER BEFORE DURING AFTER ACTIVITY, PREVIOUS 24 HOURS PLANNED ACTIVITY DRILL 6922 - 7014 Trip in hole, continue drilling Trip Bit Engineer: Chuck Stringer Kerr McGee Report # 10 Sperry Oliktok Point Alaska Drilling Services Dai/yOperationsReport WELL: Oliktok Poi nt I-1 RIG: Nabors-245 DATE: 12-Dec-06 TIME: 2:00:00 AM DEPTH (MD): 7o1a DEPTH (TVD) : 3239.55 MUD WEIGHT: 9.a ECD: 9.95 CHLORIDES (mg/L): 51,000 PWD 9.47 Surface FIT: Downhole LWD LOT: PORE PRESSURE: Background GAS: o SURVEY DEPTH: 6977.18 Drilling HRS: o.o INCL: 71.21 Cum. HRS: AZIM: 5x.85 Metal Shavings: o TVD 3227.53 Cum. Shavings: o PREVIOUS 24 HOUR SUMMARY LITHOLOGY No additional hole drilled. LCM: SH: SLTST: o°i° SAND o°i° CHT COAL CLYST o% CMT: TRIP GAS: UNITS @ MD TVD CONN GAS: NA UNITS @ NA MD NA TVD CONN GAS: NA UNITS @ NA MD NA TVD CONN GAS: NA UNITS @ NA MD NA TVD CONN GAS: NA UNITS @ NA MD NA TVD CONN GAS: NA UNITS @ NA MD NA TVD CONN GAS: NA UNITS @ NA MD NA TVD BACKGRND GAS: 0 UNITS NA MAX GAS: 0 UNITS @ 7010 MD 3238 TVD AVG ROP: 0 fUhr (24 hr) GC Depth: C1=0 C2=0 C3 = I-4= N-4= I-5= N-5= r)Rlll RRFdKC• INTERVAL DRILL RATE GAS Show/ZOI FROM TO BEFORE DURING AFTER BEFORE DURING AFTER ACTIVITY, PREVIOUS 24 HOURS Bit Trip, Pressure Test BOP Change out BHA Begin to Run in the hole PLANNED ACTIVITY Trip-in hole, Begin to drill at 7014 MD Engineer: Chuck Stringer Kerr McGee Report # 11 Sperry Oliktok Point Alaska Drilling Service s Daily Operations Report WELL: Oliktok Point I-1 RIG: Nabors-245 DATE: 11-Dec-o6 TIME: 2:00:00 AM DEPTH (MD): a25o DEPTH (TVD) : 3ssa MUD WEIGHT: 9.s ECD: CHLORIDES (mg/L): 52,000 PWD Surface FIT: Downhole LWD LOT: PORE PRESSURE: Background GAS: ao SURVEY DEPTH: s2o7.7 Drilling HRS: 13.a INCL: 68.78 Cum. HRS: 13.4 AZIM: 25.93 Metal Shavings: o TVD 3648.33 Cum. Shavings: o PREVIOUS 24 HOUR SUMMARY LITHOLOGY 7014 - 7255 Siltstone with osscasional interbedded sand and coal. 7255 - 7460 Interbedded sandstone, siltstone and coal, in sandstone abundant free oil, dull yellow flourescence, bright yellow to blue streaming cut. 7460 - 7750 Siltstone with osscasional interbedded thin sand and sandstone. 7750 - 8000 Siltstone with occasion interbedded sand, sandstone, shael and occasionally coal. 8000 - 8250 Siltstone with interbedded with sandstone and shale. Sandstone has abundant free oil in part, dull yellow flourescence, bright yullow stsraming cut. LCM: NA SH: 1o°io SLTST: 6o°io SAND 3o°io CHT COAL CLYST CMT: NA TRIP GAS: UNITS @ MD TVD CONN GAS: UNITS @ MD TVD CONN GAS: NA UNITS @ NA MD NA TVD CONN GAS: NA UNITS @ NA MD NA TVD CONN GAS: NA UNITS @ NA MD NA TVD CONN GAS: NA UNITS @ NA MD NA TVD CONN GAS: NA UNITS @ NA MD NA TVD BACKGRND GAS: UNITS NA MAX GAS: 994 UNITS @ 8210 MD 3649 TVD AVG ROP: 47.5 fUhr (24 hr) 1186 GC Depth: 8210 C1=47588 C2=242 C3 =102 I-4=74 N-4=50 I-5=0 N-5=52 nRlll RRFdKS- -- ---- -- --- -- --- INTERVAL DRILL RATE GAS Show/ZOI FROM TO BEFORE DURING AFTER BEFORE DURING AFTER Show 7410 7445 80 230 118 28 300 20 Show 8082 8100 120 200 145 20 430 30 Show 8210 8218 55 240 60 40 994 40 ACTIVITY, PREVIOUS 24 HOURS Complete trip and BOP Pressure Test Begin drilling ahead at 7014 ft. PLANNED ACTIVITY Drill ahead. Engineer: Chuck Stringer Kerr McGee Report# 12 Sperry Oliktok Point Alaska Drilling Services Daily Operations Report WELL: Oliktok Point I-1 RIG: Nabors-245 DATE: 12-Dec-os TIME: 2:00:00 AM DEPTH (MD): 8990 DEPTH (TVD) : 3912 MUD WEIGHT: 9.6 ECD: CHLORIDES (mg/L): 55,000 PWD Surface FIT: Downhole LWD LOT: PORE PRESSURE: Background GAS: s5 SURVEY DEPTH: 89so Drilling HRS: 12.1 INCL: 70.22 Cum. HRS: 25.s AZIM: 7.73 Metal Shavings: o TVD 3912.02 Cum. Shavings: o PREVIOUS 24 HOUR SUMMARY LITHOLOGY 8250 - 8310 Siltstone with osscasional interbedded sand and coal. 8310 - 8337 Sandstone: very fine to fine grained, silty, argillaceous, very poor porosity, oragne flourescence, moderately streaming to non streaming cut. 8337 - 8708 Siltstone with interbedded sandstone and occasionally thin shale beds. 8708 - 881 2 Sandstone interbedded with silstone and thin shale. San dstone: light to medium brown, hydorcarbon stained, very fine to fine grained, poorly sorted, poor porosity medium yellow flourescence, strong light yellow steaming cut, abundant free oil in samples. LCM: NA SH: 1o°io SLTST: ao°io SAND 5o°io CHT COAL CLYST CMT: NA TRIP GAS: UNITS @ MD TVD CONN GAS: UNITS @ MD TVD CONN GAS: NA UNITS @ NA MD NA TVD CONN GAS: NA UNITS @ NA MD NA TVD CONN GAS: NA UNITS @ NA MD NA TVD CONN GAS: NA UNITS @ NA MD NA TVD CONN GAS: NA UNITS @ NA MD NA TVD BACKGRND GAS: UNITS NA MAX GAS: 2201 UNITS @ 8798 MD 3847 TVD AVG ROP: 47.5 ft/hr (24 hr) 1186 GC Depth: 8798 C1=20898: C2=1282 C3 =338 1-4=293 N-4=286 1-5=0 N-5=244 nRlll RRFAKS- INTERVAL DRILL RATE GAS Show/ZOI FROM TO BEFORE DURING AFTER BEFORE DURING AFTER Show 8310 8337 47 258 95 60 2051 60 Show 8708 8812 124 390 25 65 2201 65 ACTIVITY, PREVIOUS 24 HOURS Total Depth Achieved PLANNED ACTIVITY Trip out of borehole Log borehole Engineer. Chuck Stringer Kerr McGee Report # 13 Sperry Oliktok Point Alaska Drilling Services Daily Operations Report WELL: Oliktok Point I-1 RIG: Nabors-245 DATE: 16-Dec-06 TIME: 2:00:00 AM DEPTH (MD): asso DEPTH (TVD) : ss~2 MUD WEIGHT: s.a ECD: CHLORIDES (mg/L): 55,000 PWD Surface FIT: Downhole LWD LOT: PORE PRESSURE: Background GAS: 4s SURVEY DEPTH: also Drilling HRS: o.o INCL: X0.22 Cum. HRS: o.o AZIM: 7.73 Metal Shavings: o TVD 3912.02 Cum. Shavings: o PREVIOUS 24 HOUR SUMMARY LITHOLOGY LCM: NA SH: SLTST: SAND CHT COAL CLYST CMT: NA TRIP GAS: 255 UNITS @ MD TVD CONN GAS: UNITS @ MD TVD CONN GAS: NA UNITS @ NA MD NA TVD CONN GAS: NA UNITS @ NA MD NA TVD CONN GAS: NA UNITS @ NA MD NA TVD CONN GAS: NA UNITS @ NA MD NA TVD CONN GAS: NA UNITS @ NA MD NA TVD BACKGRND GAS: UNITS NA MAX GAS: UNITS @ MD TVD AVG ROP: ft/hr (24 hr) GC Depth: C1= C2= C3 = I-4= N-4= I-5=0 N-5= nRlll RRFdKS• -- ---- -- --- -- --- INTERVAL DRILL RATE GAS Show/ZOI FROM TO BEFORE DURING AFTER BEFORE DURING AFTER ACTIVITY, PREVIOUS 24 HOURS Condition borehole prior to tripping out PLANNED ACTIVITY Complete borehole conditioning Trip out of borehole Log Borehole Engineer: Chuck Stringer Kerr McGee Report # 14 Sperry Oliktok Point Alaska Drilling Services Daily Operations Report WELL: Oliktok Point I-1 RIG: Nabors-245 DATE: 15-Dec-o6 TIME: 2:00:00 AM DEPTH (MD): s99o DEPTH (TVD) : 3912 MUD WEIGHT: 9.7 ECD: CHLORIDES (mg/L): sz,ooo PWD Surface FIT: Downhole LWD LOT: PORE PRESSURE: Background GAS: as SURVEY DEPTH: s99o Drilling HRS: o.o INCL: X0.22 Cum. HRS: o.o AZIM: 7.73 Metal Shavings: o TVD 3912.02 Cum. Shavings: o PREVIOUS 24 HOUR SUMMARY LITHOLOGY LCM: Na CHT TRIP GAS: CONN GAS: CONN GAS: CONN GAS: CONN GAS: CONN GAS: CONN GAS: BACKGRND GAS: MAX GAS: AVG ROP: GC Depth: I~Rlll RRFdKC- SH: SLTST: SAND COAL CLYST CMT: NA UNITS @ MD TVD UNITS @ MD TVD NA UNITS @ NA MD NA TVD NA UNITS @ NA MD NA TVD NA UNITS @ NA MD NA TVD NA UNITS @ NA MD NA TVD NA UNITS @ NA MD NA TVD UNITS NA UNITS @ MD TVD ft/hr (24 hr) C1= C2= C3 = I-4= N-4= I-5=0 N-5= INTERVAL DRILL RATE GAS Show/ZOI FROM TO BEFORE DURING AFTER BEFORE DURING AFTER ACTIVITY, PREVIOUS 24 HOURS Complete borehole conditioning Trip out of borehole PLANNED ACTIVITY Log Borehole Engineer: Chuck Stringer Kerr McGee Report # 15 Sperry Oliktok Point Alaska Drilling Services Daily Operations Report WELL: Oliktok Poi nt I-1 RIG: Nabors-245 DATE: 16-Dec-06 TIME: 2:00:00 AM DEPTH (MD): ssso DEPTH (ND) : 3912 MUD WEIGHT: s.7 ECD: CHLORIDES (mg/L): 52,000 PWD Surface FIT: Downhole LWD LOT: PORE PRESSURE: Background GAS: 15 SURVEY DEPTH: ssso Drilling HRS: o.o INCL: 7o.z2 Cum. HRS: o.o AZIM: 7.73 Metal Shavings: o TVD 3912.02 Cum. Shavings: o PREVIOUS 24 HOUR SUMMARY LITHOLOGY LCM: NA SH: SLTST: SAND CHT COAL CLYST CMT: NA TRIP GAS: UNITS @ MD TVD CONN GAS: UNITS @ MD TVD CONN GAS: NA UNITS @ NA MD NA TVD CONN GAS: NA UNITS @ NA MD NA ND CONN GAS: NA UNITS @ NA MD NA TVD CONN GAS: NA UNITS @ NA MD NA TVD CONN GAS: NA UNITS @ NA MD NA ND BACKGRND GAS: UNITS NA MAX GAS: UNITS @ MD ND AVG ROP: ft/hr (24 hr) GC Depth: C1= C2= C3 = I-4= N-4= I-5=0 N-5= ARlll RRFdKC• INTERVAL DRILL RATE GAS Show/ZOI FROM TO BEFORE DURING AFTER BEFORE DURING AFTER ACTIVITY, PREVIOUS 24 HOURS Logging tool failed to latch, tripped out of hole PLANNED ACTIVITY Log Borehole Engineer: Chuck Stringer Kerr McGee Report# 16 Sperry Oliktok Poinf Alaska ~Pl~~lflg S@PVIC@S Dai/yOperationsReport WELL: Oliktok Poi nt I-1 RIG: Nabors-245 DATE: ~ 7-Dec-06 TIME: 2:00:00 AM DEPTH (MD): 8990 DEPTH (TVD) : 3972 MUD WEIGHT: 9.7 ECD: CHLORIDES (mg/L): 5s,ooo PWD Surface FIT: Downhole LWD LOT: PORE PRESSURE: Background GAS: ~s SURVEY DEPTH: s99o Drilling HRS: o.o INCL: 70.22 Cum. HRS: o.o AZIM: 7.73 Metal Shavings: o TVD 3912.02 Cum. Shavings: o PREVIOUS 24 HOUR SUMMARY LITHOLOGY LCM: NA SH: SLTST: SAND CHT COAL CLYST CMT: NA TRIP GAS: UNITS @ MD TVD CONN GAS: UNITS @ MD TVD CONN GAS: NA UNITS @ NA MD NA TVD CONN GAS: NA UNITS @ NA MD NA TVD CONN GAS: NA UNITS @ NA MD NA TVD CONN GAS: NA UNITS @ NA MD NA TVD CONN GAS: NA UNITS @ NA MD NA TVD BACKGRND GAS: UNITS NA MAX GAS: UNITS @ MD TVD AVG ROP: ft/hr (24 hr) GC Depth: C1= C2= C3 = I-4= N-4= I-5=0 N-5= DRILL BREAKS: INTERVAL DRILL RATE GAS Show/ZOI FROM TO BEFORE DURING AFTER BEFORE DURING AFTER ACTIVITY, PREVIOUS 24 HOURS Trip out and log borehole. PLANNED ACTIVITY Trip out of borehole with samples, wait on sample results Engineer: Chuck Stringer Kerr McGee Report # 17 Sperry Oliktok Point Alaska Drilling Services Daily Operations Report WELL: Oliktok Poi nt I-1 RIG: Nabors-245 DATE: 18-Dec-o6 TIME: 2:00:00 AM DEPTH (MD): s99o DEPTH (TVD) : 39~z MUD WEIGHT: 9.7 ECD: CHLORIDES (mg/L): 55,000 PWD Surface FIT: Downhole LWD LOT: PORE PRESSURE: Background GAS: 15 SURVEY DEPTH: s99o Drilling HRS: o.o INCL: ~o.zz Cum. HRS: o.o AZIM: 7.73 Metal Shavings: o TVD 3912.02 Cum. Shavings: o PREVIOUS 24 HOUR SUMMARY LITHOLOGY LCM: NA SH: SLTST: SAND CHT COAL CLYST CMT: NA TRIP GAS: UNITS @ MD TVD CONN GAS: UNITS @ MD TVD CONN GAS: NA UNITS @ NA MD NA TVD CONN GAS: NA UNITS @ NA MD NA TVD CONN GAS: NA UNITS @ NA MD NA TVD CONN GAS: NA UNITS @ NA MD NA TVD CONN GAS: NA UNITS @ NA MD NA TVD BACKGRND GAS: UNITS NA MAX GAS: UNITS @ MD TVD AVG ROP: ft/hr (24 hr) GC Depth: C1= C2= C3 = 1-4= N-4= I-5=0 N-5= DRILL 6REAKS~ INTERVAL DRILL RATE GAS Show/ZOI FROM TO BEFORE DURING AFTER BEFORE DURING AFTER ACTIVITY, PREVIOUS 24 HOURS PLANNED ACTIVITY Trip out and log borehole. BOP Test. Engineer: Chuck Stringer Kerr McGee Report# 18 Sperry Oliktok Point Alaska Drilling Services Daily Operations Report WELL: Oliktok Poi nt I-1 RIG: Nabors-245 DATE: 19-Dec-os TIME: 2:00:00 AM DEPTH (MD): ssso DEPTH (TVD) : 3x12 MUD WEIGHT: ECD: CHLORIDES (mg/L): 55,000 PWD Surface FIT: Downhole LWD LOT: PORE PRESSURE: Background GAS: o.oo SURVEY DEPTH: ssso Drilling HRS: o.o INCL: X0.22 Cum. HRS: o.o AZIM: 7.73 Metal Shavings: o TVD 3912.02 Cum. Shavings: o PREVIOUS 24 HOUR SUMMARY LITHOLOGY LCM: NA SH: SLTST: SAND CHT COAL CLYST CMT: NA TRIP GAS: UNITS @ MD TVD CONN GAS: UNITS @ MD TVD CONN GAS: NA UNITS @ NA MD NA TVD CONN GAS: NA UNITS @ NA MD NA TVD CONN GAS: NA UNITS @ NA MD NA TVD CONN GAS: NA UNITS @ NA MD NA TVD CONN GAS: NA UNITS @ NA MD NA TVD BACKGRND GAS: UNITS NA MAX GAS: UNITS @ MD TVD AVG ROP: ft/hr (24 hr) GC Depth: C1= C2= C3 = I-4= N-4= 1-5=0 N-5= ARII / BREAKS' INTERVAL DRILL RATE GAS Show/ZOI FROM TO BEFORE DURING AFTER BEFORE DURING AFTER ACTIVITY, PREVIOUS 24 HOURS PLANNED ACTIVITY Trip out and log borehole. BOP Test. Engineer: Chuck Stringer Kerr McGee Report# 19 Sperry Oliktok Point Alaska Drilling Services Daily Operations Report WELL: Oliktok Poi nt I-1 RIG: Nabors-245 DATE: 2o-Dec-os TIME: 2:00:00 AM DEPTH (MD): s99o DEPTH (TVD) : 3912 MUD WEIGHT: ECD: CHLORIDES (mg/L): 55,000 PWD Surface FIT: Downhole LWD LOT: PORE PRESSURE: Background GAS: o.oo SURVEY DEPTH: s99o Drilling HRS: o.o INCL: X0.22 Cum. HRS: o.o AZIM: 7.73 Metal Shavings: o TVD 3912.02 Cum. Shavings: o PREVIOUS 24 HOUR SUMMARY LITHOLOGY LCM: NA SH: SLTST: SAND CHT COAL CLYST CMT: Na TRIP GAS: UNITS @ MD TVD CONN GAS: UNITS @ MD TVD CONN GAS: NA UNITS @ NA MD NA TVD CONN GAS: NA UNITS @ NA MD NA TVD CONN GAS: NA UNITS @ NA MD NA TVD CONN GAS: NA UNITS @ NA MD NA TVD CONN GAS: NA UNITS @ NA MD NA TVD BACKGRND GAS: UNITS NA MAX GAS: UNITS @ MD TVD AVG ROP: ft/hr (24 hr) GC Depth: C1= C2= C3 = I-4= N-4= I-5=0 N-5= DRILL 6REAKS- INTERVAL DRILL RATE GAS Show/ZOI FROM TO BEFORE DURING AFTER BEFORE DURING AFTER ACTIVITY, PREVIOUS 24 HOURS PLANNED ACTIVITY Trip out and log borehole.BOP TEST ,MAD POOH.Lay down BHA. PASS some of the section of the hole . Circulate bottoms up clean hole. Engineer: Chuck Stringer HALLIBURTON Sperry Drilling Services BIT RECORD WELL NAME: Oliktok Pt I-1 LOCATION: Oliktok Pt OPERATOR: Kerr McGee Corporation AREA: North Slope ~~ CONTRACTOR: Nabors 245E STATE: Alaska Ke~rlllr~ee BHA # Bit # Bit Type Bit Size Depth IN Depth OUT Footage Bit Hours TFA AVG ROP WOB RPM PUMP Press PUMP GPM Bit Grade Remarks 1 1 Hughes MX-1 13.50 0 2573 2573 22.40 0.719 114.9 5-as 50-60 2100 435 1-1-CT-M-E-1-ER-TD Drill Surface hole and st 10 3/4" casing 2 2 Hughes MXL-1V 9.88 2573 7014 4441 44.50 0.499 99.8 2-55 40-90 2300 600 4-5-WT-A-E-4-ER-HRS Wipe hole & change bits 3 3 Hughes MX-1 9.88 7014 8990 1976 25.60 0.499 77.2 5-30 60-90 2850 600 1-1-WT-A-E-ER-TD TD well Sperry-S U n Drilling Services Water-based Mud Record Company: Kerr McGee Corporation Well Oliktok Point I-1 Rig Nabors 245 Mud Co Baroid _ . , Lease Area North Slope -Alaska Job No: AK-AM-0004627568 Spud Date 29 November 2006 TD Date: 31 December 2006 . .. . . , , ti ~~ Casing Record 16" 85 ft MD 10 3/4" 2541 ft MD 7" Liner N/A Date _ De th Wt Vis ~.. PV YP . Gels ,, ~Fi It .~ .. _ Fann Rd s , ,. Cake SOIIdS ,. NAPIH2 _ Sd . MBT . H , ALK-mud _ ALK-felt ChlO Hard _, _ LGS Remarks ft - MD ppg sec/qt cP ibs/looez Ib/10oft mU30min 600/300!200/100/6/3 API corr% % % ppb eq Pm Pf/Mf mg/I mg/I %b/vol 29-Nov 483 9.15 55 16 29 7/8/9 8.0 61/45/3828/9/6 2 1.9 -/s3.5 1.5 9.0 0.20 0.10/0.30 55k 180 2.1 Drill 13.5" 30-Nov 1780 9.30 55 16 25 9/20/21 7.6 57/a1/3a2a/1o/a 2 3.8 -/s2.s 2.5 2.0 8.5 0.20 0.05/0.40 45k 180 3.9 Drill 13.5" 1-Dec 2572 9.40 46 14 17 6/8/- 9.4 45/31/24/17/6/5 2 4.3 -/sz.o 1.5 2.5 8.5 0.10 0.05/0.35 46k 200 4.1 TD /Run Cs 2-Dec 2572 9.40 45 14 18 6/12/- 9.7 asra225/1sn/5 2 4.3 -/sz.o 0.5 2.5 8.5 0.10 0.05/0.40 46k 200 4.1 Ni le u BOP 3-Dec 2572 9.40 40 13 10 4/7/10 10.3 36/23/16/1 on/5 2 4.3 -/s2.o 2.0 2.5 8.5 0.10 0.05/0.40 46k 200 4.1 Ni le u BOP 4-Dec 2573 9.30 42 11 11 4/10/- 12.0 3322/18/12/4/3 2 4.0 -/sz.s 2.5 8.8 0.10 0.05/0.30 43k 200 4.1 Ni le u BOP 5-Dec 2573 9.30 44 14 16 6/19/21 10.5 aa/3o2a/17n/5 2 3.9 -/sz.5 2.5 8.90 -/0.33 44k 200 4.0 Service to drive 6-Dec 2573 9.40 44 14 17 6/19/21 10.5 45/31/25/17!6/5 2 3.9 -/s2.s 0 2.5 8.9 0 0.10/0.33 44k 200 3.3 Pick u BHA 7-Dec 2573 9.30 43 14 14 5/10/14 10.8 ao2a2z2e/s/a 2 3.2 -/s3.o 0.5 2.5 8.50 1.1 0.05/0.50 46k 120 2.8 Be in drilllin 8-Dec 3715 9.50 46 14 14 4/7/12 5.0 az2e2z/1a/s/5 2 3.6 -/s2.o 0.5 5.0 9.5 1.6 -/0.46 54k 140 2.6 Drill & Short tri 9-Dec 4700 9.50 48 20 21 6/12/18 6.0 61/61/3322/6/5 2 4.3 -/s~.z .50 7.5 9.2 0.16 -/0.51 55k 140 4.2 Drillin ahead 10-Dec 6611 9.50 44 14 15 ~ 5/15/21 5.8 432923/15/5/4 2 5.9 -/so.o .75 7.5 8.5 .13 0.05/0.53 51 k 120 5.5 Drillin Ahead 11-Dec 7014 9.60 50 17 20 5/12/18 6.0 5a/372s2on/s 2 4.0 -/s1.o 0.25 10.5 8.8 0.25 0.06/.054 61k 120 3.3 Drillin /tri 12-Dec 7014 9.40 43 14 14 5/7/11 4.6 422822/15/5/4 2 3.8 -/s~.s 0.25 10.0 9.0 0.12 0.04/.054 56k 120 4.0 BOP Test 13-Dec 8023 9.60 46 15 15 5/17/24 5.6 45/3024/164/3 1 4.8 -/s1.o 0.50 10.0 8.8 0.10 0.10/0.70 52k 120 4.1 Drillin 14-Dec 8990 9.70 48 17 18 5/22/- 5.8 52/3527/18/5/3 1 5.3 1.3/89.0 0.75 11.0 8.5 0.10 0.05/.075 55k 120 4.5 Total De th 15-Dec 8990 9.65 49 18 17 4/22/27 5.8 53/3524/19/4/3 1 4.9 o.s/so.o 0.50 11.0 9.0 0.10 0.10/0.75 54k 100 3.9 Condition hole 16-Dec 8990 9.55 46 16 16 5/20/26 5.2 48/32/25/,7/4/3 1 4.5 1.0/90. 0.15 11 8.5 0.10 0.05/0.80 50k 100 3.6 Tri out of hole 17-Dec 8890 9.60 46 15 15 4/18/26 5.8 ae/3ona„s/4/3 1 4.9 1.0/90. 0.05 12.0 9.00 0.10 0.10/0.75 51k 100 4.2 Pull out of Hole 18-Dec 8890 9.65 52 20 19 4/16/22 5.4 59/39/3°/2°5/4 1 4.6 1.0/90. 0.15 12.5 9.0 0.10 0.08/0.80 55k 100 3.4 Lo in 19-Dec 8890 9.80 50 21 20 4/16/24 5.8 3/625/34/32/34 1 6.1 1.0/90 0.10 12.5 9.1 0.10 0.05/1.20 55k 100 4.0 r/u to test BOP. 20-Dec 8890 9.60 51 21 20 5/16/24 5.8 3/4 1928 36/56 1 5.0 1.0/90. 0.10 12.0 9.0 0.10 0.10/1.0 54k 100 4.2 r/u to test BOP 21-Dec 8890 9.60 53 18 19 4/14/24 5.4 4/520203041/62 1 5.1 1.0/90. 0.10 12.5 9.3 0.10 0.10/.85 53k 100 4.3 UD 9.875 BHA 22-Dec 8890 9.70 52 21 18 4/14/22 5.8 4/521/3241/62 1 5.5 1.0/90. 0.10 1.2.5 9.3 0.10 0.10/.85 49k 100 4.3 POOH 5 DP 23-Dec 8890 9.70 50 21 20 4/16/22 5.6 3/4 19/30 39/59 1 5.5 1.0/90. 0.10 12.5 9.5 0.10 0.15/1.0 50k 100 4.2 Lo in with Baker 24-Dec 8890 9.70 55 20 19 4/16/21 5.6 3!421!3247/62 1 5.5 1.0/90. 0.10 12.5 9.9 0.10 0.15/1.20 51k 100 4.4 Lo in with Baker 25-Dec 8890 9.70 55 20 19 4/16/21 5.6 s5s/3s/3o/1s/a/3 1 5.5 ~.o/s.o 0.10 12.5 9.9 0.10 0.15/1.10 51k 100 4.4 sperry-sun Well Name: Oliktok I-1 Location: Oliktok Point, North Slope Alaska DRILLING SERVICES Operator: Kerr-McGee Oil & Gas Corporation ZOrle Of ~ntereSt Report Prepared By: Wayne Hemanson & Chuck Stringer Report Delivered To: Hole Diameter: 9 7/8" Bit Type: Mill Tooth PDC Before Durinc After Diamond Insert Other Avg. ROP MW MW Avg. Avg. Avg. X ft/hr In Out WOB RPM GPM min/ft 9.6 9.6 29 50 528 80 9.6 9.7 40 41 566 173 9.6 9.6 24 92 570 185 Max ROP Avg. Gas X Units Avg. Max % Max CI- Max ROP 16 Gas 55k CI- 43 730 2201 55 40k 96 55 Formation Data Depth (MD) 7300 to 7360 ft (TVD) 3356 to 3367 ft Zone Of Interest Report No. 1 Show Report No. 0 Date/Time: 12/15/2006 7:OOam ft Max Gas @ 7338 ft Max CI @ n/a ft (GAS-IN-AIR) 131.4 0.04 0.02 0.03 0.00 At Max Gas, the visual sample percentages were: % shale 15 % sandstone 50 % siltstone 35 The reservoir rock was a It to m brn gry -colored sandstone The grain size was vfg-fg and the grain shape was sub rounded- sub angular Approximate visual porosity was <10 % and the visual permeability was poor Grain sorting was poorly sorted and the rock cement was clay The porosity type was intergranular and the secondary components in the rock fragments were: rock grains The rock hardness was poorly indurated and the sample contamination was drilling mud e th p 7331 Gas BX units % 181 1 238.9 (PPM's in 1000's) C2 C3 C4 0.053 0.029 0.390 Preliminary Gas oil ac Fluor? FIuoR C5 Y/N Y/N 0.006 Y Y -I n-Air Show Data Gas p BX units De th % C1 7340 186 25.6 0.050 0.027 0.037 0.004 Y Y 7350 133 18.6 0.042 0.026 0.034 0.004 Y Y 7360 104 139.0 1.300 0.365 0.519 0.334 Y Y Liquid Hydrocarbon Data oil cut (PPM's in 1000'S) Fluor? FIuoR C2 C3 C4 C5 Y/N Y/N The liquid hydrocarbon was first detected at 8320 feet and continued through 8360 feet. The liquid phase of the mud was KCL Ploy . The liquid hydrocarbon occurred in the form of free oil and was present in the cuttings When the cuttings were examined and studied in the UV box, the liquid hydrocarbons covered a 30 % of the surface of the sample. The oil was blk in color, exhibited a dull yellow fluorescence and had an approximate API gravity of # 30 ;odor was na and staining was present. Cuttings exhibited a moderate cut that was yellow/blue in color with a medium yellow fluorescence. Logger's Opinion of the Show Interval Probably not a production zone due to clay content effecting the porosity and permabilty. Avg. PPM (1000s) C1 C2 C3 C4 C5 PPM at Max Gas 70.0 0.64 0.06 0.08 0.05 C1 C2 C3 C4 C5 89.0 0.51 0.25 0.25 0.16 93.3 0.51 0.15 0.26 0.17 '100% Gas-In-Air= 10000 Units s pe rry-s U h Well Name: Oliktok I-1 Location: Oliktok Point, North Slope Alaska DRILLING SERVICES Operator: Kerr-McGee Oil & Gas Corporation ZOne Of ~ntereSt Report Prepared By: Wayne Hemanson & Chuck Stringer Report Delivered To: Hole Diameter: 9 7/8" Bit Type: Mill Tooth PDC Before During After Diamond Insert Other Avg. ROP MW MW Avg. Avg. Avg. ~ ft/hr In Out WOB RPM GPM min/ft 9.6 9.6 26 52 573 119 9.6 9.6 22 65 577 181 9.6 9.6 33 94 574 148 Depth (MD) 8080 to 8120 ft (TVD) 3606 to 3619 ft Zone Of Interest Report No. 2 Show Report No. Date/Time: 12/15/2006 7:OOam Max ROP @ 8090 ft Max Gas @ 8096 ft Max CI @ n/a ft Avg. Gas X Units Avg. Max % Max CI- Max ROP 98 Gas 55k CI- 258 221 431 55 97 40k Formation Data (GAS-IN-AIR) Avg. PPM (1000s) C1 C2 C3 C4 C5 PPM at Max Gas 8.8 0.03 0.01 0.01 0.00 C1 C2 C3 C4 CS 28.6 0.13 0.03 0.02 0.01 53.0 0.24 0.05 0.04 0.02 13.8 0.05 0.01 0.10 0.02 At Max Gas, the visual sample percentages were: % shale 10 % sandstone 30 % siltstone 60 The reservoir rock was a m brn -colored sandstone The grain size was v f gr and the grain shape was sub rounded- sub angular Approximate visual porosity was 10 % and the visual permeability was poor Grain sorting was poorly sorted and the rock cement was clay/silt The porosity type was intergranular and the secondary components in the rock fragments were: rock grains and mica The rock hardness was poorly indurated and the sample contamination was drilling mud Preliminary Gas -I n-Air Show Data Gas oil ac Gas X units (PPM's in 1000's) Fluor? Fluor? 8X units De th p 8 % C1 C2 C3 C4 C5 Y/N Y/N De th % C1 p 8090 95 8.0 0.028 0.005 0.005 0.000 Y Y _ 8100 401 58.1 0.268 0.061 0.041 0.017 Y Y _ 8110 194 37.4 0.017 0.034 0.025 0.009 Y Y _ 8120 109 15.2 0.059 0.011 0.011 0.006 Y Y Liquid Hydrocarbon Data oa ac (PPM's in 1000'S) Fluor? FIuoR C2 C3 C4 C5 YIN Y/N The liquid hydrocarbon was first detected at # 8100 feet and continued through # 8120 feet. The liquid phase of the mud was KCL Ploy . The liquid hydrocarbon occurred in the form of free oil and was present in the cuttings When the cuttings were examined and studied in the UV box, the liquid hydrocarbons covered a 20 % of the surface of the sample. The oil was blk in color, exhibited a dull yellow fluorescence and had an approximate API gravity of # 35 ;odor was na and staining was present. Cuttings exhibited a strong cut that was pale yellow in color with a light yellow fluorescence. Logger's Opinion of the Show Interval Probably not a production zone due to clay content effecting the porosity and permabilty. "100% Gas-In-Air= 10000 Units s pe rry-s U h Well Name: Oliktok I-1 Location: Oliktok Point, North Slope Alaska DRILLING SERVICES Operator: Kerr-McGee Oil & Gas Corporation ZOne Of ~ntereSt Report Prepared By: Wayne Hemanson & Chuck Stringer Report Delivered To: AI Heinrick Hole Diameter: Bit Type: Mill Tooth PDC Before Durinc After 9 7/8" Diamond Insert Other Avg. ROP MW MW Avg. Avg. Avg. ~ ft/hr In Out W06 RPM GPM min/ft 9.6 9.6 33 33 562 148 9.6 9.6 39 88 563 187 9.6 9.6 68 0 781 34 Depth (MD) 8202 to 8245 ft (TVD) 3646 to 3662 ft Zone Of Interest Report No. 3 Show Report No. DatelTime: 12/15/2006 7:OOam Max ROP @ 8245 ft Max Gas @ 8227 ft Max CI @ n/a ft Avg. Gas X Units Avg. Max % Max CI- Max ROP 79 Gas 55k CI- 273 310 993 55 97 55 Formation Data (GAS-IN-AIR) Avg. PPM (1000s) C1 C2 C3 C4 C5 8.2 0.04 0.01 0.02 0.00 30.6 0.16 0.67 0.10 0.06 7.6 0.04 0.02 0.02 0.01 PPM at Max Gas C1 C2 C3 C4 C5 103.2 5.57 2.42 3.28 1.96 At Max Gas, the visual sample percentages were: % shale 10 % sandstone 30 % siltstone 60 The reservoir rock was a It to m brn -colored sandstone The grain size was v f gr and the grain shape was sub rounded- sub angular Approximate visual porosity was 10 % and the visual permeability was poor Grain sorting was poorly sorted and the rock cement was clay/silt The porosity type was intergranular and the secondary components in the rock fragments were: rock grains and mica The rock hardness was poorly indurated and the sample contamination was drilling mud Preliminary Gas-I n-Air Show Data Gas oil cut Gas ~X units (PPM's in 1000's) Fluor? FIuoR ~ units De th p % C1 C2 C3 C4 C5 Y/N Y/N De th % C1 P 8202 43 1.9 0.007 0.004 0.006 0.000 Y Y 8212 132 27.6 0.134 0.053 0.071 0.032 Y Y 8232 144 9.5 0.048 0.020 0.034 0.017 Y Y 8242 512 53.2 0.283 0.134 0.198 0.123 Y Y Liquid Hydrocarbon Data oil cut (PPM's in 1000's) Fluor? FIuoR C2 C3 C4 CS Y/N Y/N The liquid hydrocarbon was first detected at # 8100 feet and continued through # 8120 feet. The liquid phase of the mud was KCL Ploy . The liquid hydrocarbon occurred in the form of free oil and was present in the cuttings When the cuttings were examined and studied in the UV box, the liquid hydrocarbons covered a 20 % of the surface of the sample. The oil was blk in color, exhibited a m yel fluorescence and had an approximate API gravity of #, 35 ;odor was na and staining was present. Cuttings exhibited a strong cut that was pale yellow in color with a light yellow fluorescence. Logger's Opinion of the Show Interval Possible production zone however clay/silt content will limit effective the porosity and permabilty. *100% Gas-In-Air= 10000 Units sperry-Sun Well Name: Oliktok I-1 Location: Oliktok Point, North Slope Alaska DRILLING SERVICES Operator: Kerr-McGee Oil & Gas Corporation ZOne Of ~tlt@r@St Report Prepared By: Wayne Hemanson & Chuck Stringer Report Delivered To: Hole Diameter: 9 7/8" inches Bit Type:Mill Tooth Diamond Insert ~x PDC ~Othel MW MW Avg. Avg. In Out WOB RPM Before Durinc Afte 9.6 9.6 32 81 9.6 9.6 40 41 9.6 9.6 16 27 Depth (MD) 8310 to 8337 ft (TVD) 3685 to 3694 ft Zone Of Interest Report No. Show Report No. 1 Date/Time: 12/15/2006 7:OOam Max ROP @ ft Max Gas @ 8332 ft Max CI @ n/a ft Avg. Avg. ROP Gas Avg. X ft/hr X Units Avg. GPM min/ft Max % Max CI- Max 583 151 ROP 60 Gas 55 CI- 566 209 275 792 2051 55 55 569 93 121 55 Formation Data (GAS-IN-AIR) Avg. PPM (1000s) C1 C2 C3 C4 C5 PPM at Max Gas 10.6 0.06 0.03 0.06 0.04 16.7 0.09 0.25 0.96 0.72 126.9 0.04 0.04 0.09 C1 C2 C3 C4 C5 18.5 0.10 0.46 0.10 0.78 0.06 At Max Gas, the visual sample percentages were: % 30 % sandstone 70 % siltstone _ The reservoir rock was a It gry to It brn -colored sandstone The grain size was vfg-fg and the grain shape was sub rounded-sub angular Approximate visual porosity was 10 % and the visual permeability was poor Grain sorting was poorly sorted and the rock cement was clay/calcite The porosity type was intergranular and the secondary components in the rock fragments were: chert and rock grains and mica The rock hardness was poorly indurated and the sample contamination was drilling mud Gas X units (PPM's in 1000's) Depth % C1 C2 C3 C4 8315 585 27.4 0.153 0.081 0.142 8325 1905 132.2 0.810 0.441 0.617 Gas-In-Air Show Data o~i cut Gas Fluor? F~UOf? X units CS Y/N Y/N Depth 0.097 Y Y 8332 1819 0.365 Y Y 8338 126 Liquid Hydrocarbon Data oa cut (PPM's in 1000's) Fluor'? Fluor'? C1 C2 C3 C4 C5 YiN Y/N 19.9 1.258 0.657 0.914 0.509 Y Y 0.9 0.050 0.030 0.055 0.045 Y Y The liquid hydrocarbon was first detected at 8320 feet and continued through 8812 feet. The liquid phase of the mud was KCL Poly . The liquid hydrocarbon occurred in the form of free oil and was present in the cuttings When the cuttings were examined and studied in the UV box, the liquid hydrocarbons covered 30 % of the surface of the sample. The oil was blk in color, exhibited a oragnge yellow fluorescence and had an approximate API gravity of 30 ;odor was na and staining was present. Cuttings exhibited a weak non streaming cut that was pale yellow in color with a medium yel fluorescence. Logger's Opinion of the Show Interval Possible Production zone. *100% Gas-In-Air= 10000 Units s pe rry-sun Well Name: Oliktok I-1 Location: Oliktok Point, North Slope Alaska DRILLING SERVICES Operator: Kerr-McGee Oil & Gas Corporation ZOlle Of ~ntereSt Report Prepared By: Wayne Hemanson & Chuck Stringer Report Delivered To: Hole Diameter: Bit Type: Mill Tooth PDC Before Durinc After 9 7/8" Diamond ~ Insert Other Avg. ROP MW MW Avg. Avg. Avg. X fUhr In Out WOB RPM GPM min/ft 9.6 9.6 21 50 577 96 9.6 9.7 40 41 566 126 9.6 9.6 32 92 574 30 Max ROP @ Avg. Gas X Units Avg. Max % Max CI- Max ROP 42 Gas 55k CI- 43 730 2201 40k 40k 212 40k Formation Data Depth (MD) 8708 to 8812 ft (TVD) 3817 to 3852 ft Zone Of Interest Report No. Show Report No. 2 Datelf-ime: 12/15/2006 7:OOam ft Max Gas @ (GAS-IN-AIR) 8798 ft Max CI @ n/a ft Avg. PPM (1000s) C1 C2 C3 C4 C5 PPM at Max Gas 275.0 15.00 10.00 45.00 53.00 C1 C2 C3 C4 C5 89.0 0.51 0.25 0.25 0.16 93.3 0.51 0.15 0.26 0.17 4 22.3 0.14 0.14 0.10 0.08 At Max Gas, the visual sample percentages were: % shale 30 % sandstone 70 % siltstone _ The reservoir rock was a It gry to brn -colored sandstone The grain size was vfg-fg and the grain shape was sub rounded- sub angular Approximate visual porosity was 15 % and the visual permeability was fair Grain sorting was poorly sorted and the rock cement was calcite The porosity type was intergranular and the secondary components in the rock fragments were: rock grains and mica The rock hardness was poorly indurated and the sample contamination was drilling mud Preliminary Gas-In-Air Show Data Gas oll cuc Gas oll ac BX units (PPM's in 1000's) Fluor'? Fluor? ~X units (PPM's in 1000's) Fluor'? Fluon. De th p % C1 C2 C3 C4 C5 Y/N Y/N De th p % C1 C2 C3 C4 C5 Y/N Y/N 8730 241 33.5 0.180 0.049 0.100 0.171 Y Y 8760 764 96.3 0.519 0.136 0.249 0.157 Y Y 8778 2061 209.0 1.280 0.360 0.562 0.231 Y Y 8798 2201 212.0 1.300 0.365 0.519 0.334 Y Y 8812 543 61.8 0.326 0.100 0.192 0.142 Y Y Liquid Hydrocarbon Data The liquid hydrocarbon was first detected at 8720 feet and continued through 8812 feet. The liquid phase of the mud was KCL Ploy . The liquid hydrocarbon occurred in the form of free oil and was present in the cuttings When the cuttings were examined and studied in the UV box, the liquid hydrocarbons covered a 30 % of the surface of the sample. The oil was blk in color, exhibited a dull yellow fluorescence and had an approximate API gravity of # 35 ;odor was na and staining was present. Cuttings exhibited a rapid cut that was pale yellow in color with a medium yel fluorescence. Logger's Opinion of the Show Interval Possible production unit `100% Gas-In-Air= 10000 Units Halliburton Company Survey Report Company: Kerr McGee Datc: 1/23!2007 Time: 16:23:56 Pale: 1 Field: OLIKTOK POINT Co-ordinate(NE} Rct erence: W ell: Oliktok Point I -1, True North Site: OLIKTOK POINT Vertical ATV"Dl Refer ence: Oi iktok Point I-f: 53 .0 ii Well: Oliktok Point I-1 Section (VS) Keferen ce: W ell (O.OON,O.OOE,62.24Azi) Wcllpatlt: Oliktok Point I-1 - Survey Calculation 3~ - lethod: Mi _ nimum Curvature Db: Oracle _ Field: OLIKTOK POINT - _ _ _- Map System:US State Plane Coordinate System 1927 Map Zone: Alaska, Zone 4 Geo Datum: NAD27 (Clarke 1866) Coordinate System: Well Centre Sys Datum: Mean Sea Level Geomagnetic Model: bggm2006 Well: Oliktok Point I-1 Slot Name: Well Position: +N/-S -0.03 ft Northing: 6036581.12 ft Latitude: 70 30 40.060 N +E/-W -0.28 ft Easting : 516760.57 ft Longitude: 149 51 46.249 W Position Uncertainty: 0.00 ft Wellpath: Oliktok Point I-1 Drilled From: Well Ref. Point Oliktok Point I-1 MWD Tie-on Depth: 40.90 ft Current Datum: Oliktok Point I-1: Height 53.00 ft Above System Datum: Mean Sea Level Magnetic Data: 11 /26/2006 Declination: 23.64 deg Field Strength: 57616 nT Mag Dip Angle: 80.94 deg Vertical Section: Depth From (TVD) +N/-S +E/-W Direction ft ft ft deg 40.90 0.00 0.00 62.24 Survey Program For Definitive Wellpath Date: 1/23/2007 Va lidated: No Version: 5 Actual From To Su rvey Toolcode Tool Name ft ft 144.58 8952.19 Oli ktok Point I-1 IIFR+MS+Sag MWD+IFR-AK-CAZ-SC MWD+IFR AK CAZ SCC Survey MD Lul A zim TVD Sys TW N/S F./~~ :~IapN 111apF, Tool ft deg deg ft ft ft ft ft ft 40.90 0.00 0.00 40.90 -12.10 0.00 0.00 6036581.12 516760.57 TIE LINE 144.58 0.63 65.13 144.58 91.58 0.24 0.52 6036581.36 516761.09 MWD+IFR-AK-CAZ-SC 234.13 2.09 64.76 234.10 181.10 1.14 2.44 6036582.27 516763.01 MWD+IFR-AK-CAZ-SC 321.99 4.60 71.20 321.80 268.80 2.96 7.23 6036584.10 516767.79 MWD+IFR-AK-CAZ-SC 413.20 6.11 73.68 412.61 359.61 5.50 15.35 6036586.66 516775.90 MWD+IFR-AK-CAZ-SC 501.92 7.31 72.06 500.72 447.72 8.57 25.25 6036589.75 516785.80 MWD+IFR-AK-CAZ-SC 592.47 7.59 81.51 590.51 537.51 11.23 36.64 6036592.43 516797.19 MWD+IFR-AK-CAZ-SC 685.22 9.32 86.62 682.25 629.25 12.57 50.20 6036593.81 516810.74 MWD+IFR-AK-CAZ-SC 776.00 12.34 82.36 771.41 718.41 14.30 67.16 6036595.57 516827.69 MWD+IFR-AK-CAZ-SC 865.26 16.86 80.56 857.76 804.76 17.69 89.39 6036599.01 516849.91 MWD+IFR-AK-CAZ-SC 954.44 20.13 81.24 942.33 889.33 22.15 117.32 6036603.53 516877.83 MWD+IFR-AK-CAZ-SC 1043.47 22.60 78.58 1025.23 972.23 27.87 149.24 6036609.33 516909.73 MWD+IFR-AK-CAZ-SC 1136.36 27.80 75.90 1109.26 1056.26 36.69 187.77 6036618.23 516948.24 MWD+IFR-AK-CAZ-SC 1231.77 32.50 73.75 1191.74 1138.74 49.29 233.98 6036630.93 516994.42 MWD+IFR-AK-CAZ-SC 1332.41 34.99 72.71 1275.42 1222.42 65.43 287.50 6036647.20 517047.89 MWD+IFR-AK-CAZ-SC 1427.67 36.47 72.13 1352.74 1299.74 82.24 340.53 6036664.12 517100.88 MWD+IFR-AK-CAZ-SC 1520.83 40.69 73.42 1425.56 1372.56 99.41 396.01 6036681.41 517156.32 MWD+IFR-AK-CAZ-SC 1615.19 42.52 72.60 1496.11 1443.11 117.72 455.93 6036699.86 517216.18 MWD+IFR-AK-CAZ-SC 1711.00 44.68 71.16 1565.49 1512.49 138.29 518.71 6036720.56 517278.91 MWD+IFR-AK-CAZ-SC 1804.34 45.51 71.83 1631.38 1578.38 159.27 581.40 6036741.68 517341.55 MWD+IFR-AK-CAZ-SC 1904.42 51.25 70.53 1697.83 1644.83 183.43 652.17 6036766.00 517412.26 MWD+IFR-AK-CAZ-SC 1994.69 51.94 70.72 1753.90 1700.90 206.89 718.91 6036789.61 517478.94 MWD+IFR-AK-CAZ-SC 2091.78 52.77 66.58 1813.22 1760.22 234.89 790.47 6036817.76 517550.43 MWD+IFR-AK-CAZ-SC 2184.35 52.93 64.01 1869.13 1816.13 265.72 857.49 6036848.75 517617.38 MWD+IFR-AK-CAZ-SC 2280.38 56.16 65.07 1924.83 1871.83 299.33 928.11 6036882.51 517687.91 MWD+IFR-AK-CAZ-SC 2371.95 58.09 66.81 1974.53 1921.53 330.67 998.34 6036914.01 517758.06 MWD+IFR-AK-CAZ-SC 2491.07 62.01 68.31 2033.99 1980.99 370.03 1093.72 6036953.58 517853.34 MWD+IFR-AK-CAZ-SC 2624.71 61.21 70.46 2097.54 2044.54 411.43 1203.75 6036995.22 517963.27 MWD+IFR-AK-CAZ-SC 2715.89 63.91 72.75 2139.56 2086.56 436.94 1280.53 6037020.91 518039.98 MWD+IFR-AK-CAZ-SC 2810.18 61.11 73.60 2183.08 2130.08 461.16 1360.58 6037045.30 518119.97 MWD+IFR-AK-CAZ-SC Halliburton Company Survey Report Company: Kerr MCGee Datr. 1/23!2007 Tim e: 16 :23:56 Pa„e: Field: OLIKTOK POINT Co -ord inatc(NF,I Reference: Well: Oliktok Point I -1, True North Site: OLIKTOK POINT ti'crtica l ITVDI Refe rence: Oliktok Point I- 1:53 .0 Well: Olikt ok P oint I-1 Section fVS) Reference: Well (O.OON,O. OOE,62.24Azi) Welipath: Olikt ok P oint I-1 Sun°ey Calculation nlcthod: Minimum Curvature Dh: Oracle Survcv ~ti1D Inc! [1LIm T~'D Sys TV D N/S L/W ~IapN D1apE 'Pool ft deg deg ft ft ft ft ft ft 2902. 69 62. 63 76. 80 2226. 70 2173. 70 481. 98 1439.44 6037066. 30 518198. 78 MWD+IFR-AK-CAZ-SC 2977. 63 62. 44 76. 40 2261. 26 2208. 26 497. 39 1504.12 6037081. 85 518263. 42 MWD+IFR-AK-CAZ-SC 3100. 36 66. 95 77. 09 2313. 71 2260. 71 522. 81 1612.10 6037107. 51 518371. 32 MWD+IFR-AK-CAZ-SC 3195. 17 70. 67 80. 33 2347. 98 2294. 98 540. 08 1698.76 6037124. 98 518457. 94 MWD+IFR-AK-CAZ-SC 3289. 92 74. 34 80. 80 2376. 46 2323. 46 554. 88 1787.89 6037139. 98 518547. 03 MWD+IFR-AK-CAZ-SC 3386. 53 79. 28 78. 11 2398. 50 2345. 50 572. 11 1880.32 6037157. 42 518639. 41 MWD+IFR-AK-CAZ-SC 3481. 78 78. 15 73. 96 2417. 15 2364. 15 594. 64 1970.95 6037180. 15 518729. 98 MWD+IFR-AK-CAZ-SC 3575. 78 75. 24 73. 59 2438. 78 2385. 78 620. 20 2058.77 6037205. 90 518817. 73 MWD+IFR-AK-CAZ-SC 3677. 03 78. 52 73. 16 2461. 76 2408. 76 648. 41 2153.24 6037234. 32 5f8912. f3 MWD+IFR-AK-CAZ-SC 3762. 05 79. 90 71. 10 2477. 68 2424. 68 674. 04 2232.72 6037260. 13 518991. 54 MWD+IFR-AK-CAZ-SC 3855. 78 81. 01 70. 07 2493. 22 2440. 22 704. 76 2319.90 6037291. 05 519078. 64 MWD+IFR-AK-CAZ-SC 3954. 45 78. 48 69. 05 2510. 79 2457. 79 738. 67 2410.87 6037325. 15 519169. 53 MWD+IFR-AK-CAZ-SC 4047. 38 80. 32 70. 95 2527. 88 2474. 88 769. 90 2496.70 6037356. 57 519255. 28 MWD+IFR-AK-CAZ-SC 4134 .09 82. 20 70. 45 2541. 06 2488. 06 798. 23 2577.58 6037385. 08 519336. 09 MWD+IFR-AK-CAZ-SC 4237 .96 82. 05 70. 96 2555. 29 2502. 29 832. 22 2674.69 6037419. 29 519433. 11 MWD+IFR-AK-CAZ-SC 4334 .51 82. 32 71. 49 2568. 42 2515. 42 863. 01 2765.26 6037450. 28 519523. 60 MWD+IFR-AK-CAZ-SC 4430. 75 82. 00 71. 61 2581. 54 2528. 54 893. 18 2855.70 6037480. 65 519613. 96 MWD+IFR-AK-CAZ-SC 4517. 51 81. 90 71. 08 2593. 69 2540. 69 920. 66 2937.09 6037508. 31 519695. 28 MWD+IFR-AK-CAZ-SC 4620. 73 81. 36 71. 74 2608. 72 2555. 72 953. 22 3033.88 6037541. 08 519791. 99 MWD+IFR-AK-CAZ-SC 4711. 30 83. 10 70. 21 2620. 96 2567. 96 982. 47 3118.71 6037570. 53 519876. 74 MWD+IFR-AK-CAZ-SC 4802 .46 81. 75 71. 01 2632. 98 2579. 98 1012. 47 3203.94 6037600. 72 519961. 90 MWD+IFR-AK-CAZ-SC 4894 .24 80. 63 71. 07 2647. 04 2594. 04 1041. 94 3289.72 6037630. 37 520047. 60 MWD+IFR-AK-CAZ-SC 4990 .63 78. 38 71. 17 2664. 59 2611. 59 1072. 60 3379.39 6037661. 24 520137. 20 MWD+IFR-AK-CAZ-SC 5091 .21 77. 00 71. 11 2686. 04 2633. 04 1104. 37 3472.38 6037693. 21 520230. 10 MWD+IFR-AK-CAZ-SC 5185 .02 75. 97 71. 12 2707. 96 2654. 96 1133. 89 3558.68 6037722. 93 520316. 33 MWD+IFR-AK-CAZ-SC 5280 .64 75. 44 70. 16 2731. 57 2678. 57 1164. 6f 3646.10 6037753. 84 520403. 67 MWD+IFR-AK-CAZ-SC 5376 .55 73. 84 71. 56 2756. 98 2703. 98 1194. 93 3733.47 6037784. 36 520490. 96 MWD+IFR-AK-CAZ-SC 5470 .74 73. 70 72. 56 2783. 30 2730. 30 1222. 79 3819.50 6037812. 40 520576. 92 MWD+IFR-AK-CAZ-SC 5565 .09 73. 06 73. 84 2810. 29 2757. 29 1248. 92 3906.05 6037838. 73 520663. 40 MWD+IFR-AK-CAZ-SC 5657 .93 73. 75 73. 71 2836. 80 2783. 80 1273. 78 3991.48 6037863. 78 520748. 77 MWD+IFR-AK-CAZ-SC 5754 .36 73. 57 74. 15 2863. 93 2810. 93 1299. 40 4080.40 6037889. 59 520837. 62 MWD+IFR-AK-CAZ-SC 5847 .77 73. 06 73. 04 2890. 75 2837. 75 1324. 66 4166.23 6037915. 05 520923. 39 MWD+IFR-AK-CAZ-SC 5940 .07 72. 89 73. 07 2917. 78 2864. 78 1350. 39 4250.65 6037940. 96 521007. 74 MWD+IFR-AK-CAZ-SC 6032 .65 73 .06 71. 29 2944. 89 2891. 89 1377. 48 4334.93 6037968. 24 521091. 95 MWD+IFR-AK-CAZ-SC 6129 .75 72. 54 71. 70 2973. 60 2920. 60 1406. 92 4422.89 6037997. 87 521179. 83 MWD+IFR-AK-CAZ-SC 6225 .98 71. 76 71. 64 3003. 10 2950. 10 1435. 72 4509.84 6038026. 87 521266. 71 MWD+IFR-AK-CAZ-SC 6320 .56 72. 43 70. 21 3032. 18 2979. 18 1465. 14 4594.89 6038056. 47 521351. 68 MWD+IFR-AK-CAZ-SC 6412 .89 72. 56 69. 46 3059. 95 3006. 95 1495. 49 4677.55 6038087. 01 521434. 26 MWD+IFR-AK-CAZ-SC 6507 .75 72. 70 68. 88 3088. 27 3035. 27 1527. 68 4762.16 6038119. 39 521518. 80 MWD+IFR-AK-CAZ-SC 6602 .38 73 .47 67. 08 3115. 80 3062. 80 1561. 63 4846.09 6038153. 53 521602. 64 MWD+IFR-AK-CAZ-SC 6697 .09 73 .15 66. 87 3143. 00 3090. 00 1597. 11 4929.58 6038189. 19 521686. 04 MWD+IFR-AK-CAZ-SC 6790 .63 72 .55 64. 10 3170. 59 3117. 59 1634. 19 5010.90 6038226. 45 521767. 27 MWD+IFR-AK-CAZ-SC 6885 .08 72 .57 61. 79 3198. 90 3145. 90 1675. 17 5091.14 6038267. 61 521847. 41 MWD+IFR-AK-CAZ-SC 6977 .18 71. 21 59. 85 3227. 53 3174. 53 1717. 85 5167.56 6038310. 45 521923. 73 MWD+IFR-AK-CAZ-SC 7065 .17 69. 13 56. 17 3257. 39 3204. 39. 1761. 67 5237.76 6038354. 43 521993. 82 MWD+IFR-AK-CAZ-SC 7166 .26 68. 13 56. 90 3294. 22 3241. 22 1813. 58 5316.29 6038406. 51 522072. 22 MWD+IFR-AK-CAZ-SC 7260 .31 67 .86 53. 94 3329. 47 3276. 47 1863. 06 5388.07 6038456. 15 522143. 89 MWD+IFR-AK-CAZ-SC 7354 .28 68 .14 53. 53 3364. 67 3311. 67 1914. 60 5458.32 6038507. 84 522214. 01 MWD+IFR-AK-CAZ-SC 7448 .66 68 .45 51. 64 3399. 58 3346. 58 1967. 88 5527.96 6038561. 27 522283. 53 MWD+IFR-AK-CAZ-SC 7544 .44 67 .84 48. 67 3435. 24 3382. 24 2024. 82 5596.21 6038618. 36 522351. 64 MWD+IFR-AK-CAZ-SC 7638 .85 69 .83 46. 24 3469. 33 3416. 33 2084. 35 5661.06 6038678. 03 522416. 34 MWD+IFR-AK-CAZ-SC 7734 .35 72. 50 44. 56 3500. 16 3447. 16 2147. 82 5725.40 6038741. 64 522480. 53 MWD+IFR-AK-CAZ-SC Halliburton Company Survey Report Company: Kerr McGee Date: 1/23/2007 Ti mc: 16:23:56 Page: 3 Field: OLIKTOK POINT Co-ordinate(NF.1 Reference: Well: Oliktok Point I-1, True North Site: OLIKTOK POINT Vertical fTVDI Reference: Oliktok Point I-1:53.0 Well: Oliktok Point I-1 Section (VS) Reference: Well (O.OON,O.OOE,62.24Azi) ~~'cllpath: Oliktok Point I-1 Survey Calculation V[cthod: Minimum Curvature llb: Oracle Sun'ev b1D Tncl lzim TVI) Sys TVD N/S E/W NIapN ft deg deg ft ft ft ft ft 7830.21 72.87 7924.50 71.08 8018.69 72.23 8112.50 72.09 8207.70 68.59 8300.47 69.29 8396.25 70.06 8488.42 71.40 8585.87 71.73 8680.95 69.86 8776.12 70.27 8870.53 70.41 8952.19 70.22 8990.00 70.22 _- 40.85 --_ 3528.70 3475.70 __ 2215.06 5787.45 6038809.01 36.13 3557.89 3504.89 2285.20 5843.25 6038879.27 29.51 3587.56 3534.56 2360.29 5891.66 6038954.46 27.12 3616.31 3563.31 2438.90 5934.01 6039033.16 24.24 3648.34 3595.34 2519.66 5972.87 6039114.00 20.61 3681.68 3628.68 2599.67 6005.88 6039194.08 19.71 3714.95 3661.95 2683.98 6036.83 6039278.45 14.08 3745.39 3692.39 2767.20 6062.09 6039361.71 13.97 3776.21 3723.21 2856.89 6084.50 6039451.45 8.51 3807.50 3754.50 2944.91 6102.01 6039539.49 8.21 3839.95 3786.95 3033.42 6115.02 6039628.03 6.98 3871.72 3818.72 3121.55 6126.77 6039716.17 7.73 3899.22 3846.22 3197.80 6136.61 6039792.44 7.73 3912.02 3859.02 3233.06 6141.40 6039827.70 MapE Tw~l 522542.43 MWD+IFR-AK-CAZ-SC 522598.06 MWD+IFR-AK-CAZ-SC 522646.30 MWD+IFR-AK-CAZ-SC 522688.47 MWD+IFR-AK-CAZ-SC 522727.14 MWD+IFR-AK-CAZ-SC 522759.97 MWD+IFR-AK-CAZ-SC 522790.73 MWD+IFR-AK-CAZ-SC 522815.80 MWD+IFR-AK-CAZ-SC 522838.00 MWD+IFR-AK-CAZ-SC 522855.31 MWD+IFR-AK-CAZ-SC 522868.12 MWD+IFR-AK-CAZ-SC 522879.67 MWD+IFR-AK-CAZ-SC 522889.34 MWD+IFR-AK-CAZ-SC 522894.04 PROJECTED to TD ~,ooo f 2000 I 3000 4000 t F.1 Q d 0 5000 L N Cdd G 6000 7000. 8000 9000 10000 Kerr McGee Oliktok Point I-1 Days -vs- Depth ~, Drill 13 1/ "Hole Kerrll/rGee Set 1 3/4" casing at 25 3' Drill 9 7/8" le Chan a bits and wipe ho e Test Prod ction Zone with B ker Tools on drill ipe S t 3 cement plugs, Run 1992' 3 1/ un EZSV Packer "tubing and set in t 2442' & cement hanger, freeze. pr ug on top ect. 0 5 10 15 20 25 30 35 Rig Days ;~I ;~errNtGee OLIKTOK POINT I-1 API # 5023324-a10 DATA C D ~. ~, ~ ~ ..a -3 ~~':±~ ~ y~~ j Sperry Drilling Services OVERSIZED LOGS OF VARIOUS KINDS TO VIEW, SEE DOCUMENTS IN FILE FOLDER ~I ''errNtGee OLIKTOK POINT I-1 API # 5023324-00 FORMATION EVALUATION LOGS: 1:600 MD 40' - 8900' TVD 40' - 3912' >, Sperry Drilling Services ~'~I KerrlVrGee OLIKTOK POINT I-1 API # 5023324-00 SHOV1l LOSS: 1:240 MD 8000' - 8990' TVD 3400' - 3912' Sperry Drilling Services ~I i~"errNtGee OLIKTOK POINT I-1 API # 5023324-00 1:600 ENGINEERING LOG Sperry Drilling Services
