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206-029
1. Operations Abandon Plug Perforations Fracture Stimulate Pull Tubing Operations shutdown Performed: Suspend Perforate Other Stimulate Alter Casing Change Approved Program Plug for Redrill Perforate New Pool Repair Well Re-enter Susp Well Other: Development Exploratory Stratigraphic Service 6. API Number: 7. Property Designation (Lease Number):8. Well Name and Number: 9. Logs (List logs and submit electronic data per 20AAC25.071):10. Field/Pool(s): 11. Present Well Condition Summary: 3,414; Total Depth measured 5,032 feet 3,490; 3,700 feet true vertical 4,885 feet 3,490 (Fill) feet Effective Depth measured 3,414 feet 3,382 feet true vertical 3,325 feet 3,296 feet Perforation depth Measured depth See Attached Schematic True Vertical depth See Attached Schematic Tubing (size, grade, measured and true vertical depth)2-7/8" 6.45# / L-80 3,489' MD 3,395' TVD Packers and SSSV (type, measured and true vertical depth)5-1/2" Prod Pkr, N/A 3,382' MD 3,300' TVD N/A, N/A 12. Stimulation or cement squeeze summary: Intervals treated (measured): Treatment descriptions including volumes used and final pressure:N/A 13. Prior to well operation: Subsequent to operation: 15. Well Class after work: Daily Report of Well Operations Exploratory Development Service Stratigraphic Copies of Logs and Surveys Run 16. Well Status after work: Oil Gas WDSPL Electronic Fracture Stimulation Data GSTOR GINJ SUSP SPLUG Sundry Number or N/A if C.O. Exempt: Taylor Wellman 777-8449 Contact Name:Ted Kramer Authorized Title:Operations Manager Contact Email: Contact Phone:777-8420 WINJ WAG 0 Water-Bbl MD 126' 1,525' 0 Oil-Bbl measured true vertical Packer 5-1/2"5,032'4,885' measured 3800 Centerpoint Dr Suite 1400 Anchorage, AK 99503 Kenai Gas Field / Sterling Undefined Gas Pool N/A measured TVD Tubing Pressure 600 Kenai Unit (KU) 21-07X N/A FEDA 028142 Plugs Junk STATE OF ALASKA ALASKA OIL AND GAS CONSERVATION COMMISSION REPORT OF SUNDRY WELL OPERATIONS 206-029 50-133-20558-00-00 4. Well Class Before Work:5. Permit to Drill Number: 3. Address: 2. Operator Name:Hilcorp Alaska, LLC 17. I hereby certify that the foregoing is true and correct to the best of my knowledge. 320-282 0 Size 14. Attachments (required per 20 AAC 25.070, 25.071, & 25.283) 0 Gas-Mcf 0 Authorized Signature with date: Authorized Name: 0 Casing Pressure Liner 0 0 Representative Daily Average Production or Injection Data 126' 1,525' 5,032' Conductor Surface Intermediate Production 4,910psi Casing Structural 13-3/8" 9-5/8" Length 5,750psi Collapse 1,950psi 3,090psi tkramer@hilcorp.com Senior Engineer:Senior Res. Engineer: Burst 3,450psi 5,320psi 126' 1,525' t Fra O 6. A G L PG , R Form 10-404 Revised 3/2020 Submit Within 30 days of Operations By Jody Colombie at 12:18 pm, Jul 13, 2020 Digitally signed by Taylor Wellman DN: cn=Taylor Wellman, ou=Users Date: 2020.07.13 11:44:24 -08'00' Taylor Wellman DSR-7/13/2020 Plug Perforations SFD 7/13/2020 RBDMS HEW 7/13/2020 gls 9/21/20 Rig Start Date End Date E-Line 7/10/20 7/10/20 Daily Operations: Hilcorp Alaska, LLC Weekly Operations Summary API Number Well Permit NumberWell Name KU 21-07X 50-133-20558-00-00 206-029 07/14/2020 - Tuesday No activity to report. 07/11/2020 - Saturday Sign In. Mobe to location. Spot equipment and rig up lubricator. PT to 250 psi low and 3,500 psi high. TP - 50 psi. Attempt to run 2.21" GR but would not go past hanger. RIH w/2.125" CCL and tagged at 3,489'. Ran correlation log with just CCL and correlated with tubing tally. Send to town while coming out of hole. RIH w/2.10" OD Geo CIBP and tie into Drift correlation after we got back ok from town. Spotted and set CIBP at 3,440' w/50 psi on tubing. Lost 100 lb line tension when plug set. Waited 5 min and picked up 30' and went back down and tagged. POOH. Setting tool looked good. Good set. Mix and fill 2" x 30' cement dump bailer with 17 ppg cement. RIH and tag plug at 3,440'. Pick up 14' and dump cement on top of plug. Lost line tension as cement left bailer. POOH. bailer had dumped ok. dumped 13' of cement on top of plug. RIH w/ 2" x 30' Cement dump bailer and tie into Plug log. Stop aprrox 26' from plug and dump 13' of 17 ppg cement (26' total). Lost line tension as cement left bailer. POOH. Bailer had dumped ok, dumped 13' of cement on top of first cement dump. CIP - 1300 hrs. Est TOC - 3,414' (26'). Rig down lubricator and equipment. Shut swab and both master valves. Wait on Cement (1300 hrs equals 24 hrs). 07/13/2020 - Monday No activity to report. Production filled tubing with water, pressure tested tubing to 1500 psi for 2 hours - good test. Cap well with 35 gallons diesel, bled tubing pressure to 200 psi. 07/12/2020 - Sunday No activity to report. 07/08/2020 - Wednesday No activity to report. 07/09/2020 - Thursday No activity to report. 07/10/2020 - Friday cement on top of plug. set CIBP at 3,440' w/50 psi on tubing. 0'. Pick up 14' and dump c _____________________________________________________________________________________ Updated by DMA 07-13-20 SCHEMATIC Kenai Gas Field Well: KU 21-07X Last Completed: 9/1/2006 PTD: 206-029 CASING DETAIL Size Type Wt/ Grade/ Conn ID Top Btm 13-3/8' Conductor 68 / K-55 12.415 Surf 126' 9-5/8" Surface 40 / L-80 8.679 Surf 1,525' 5-1/2" Production 17 / J-55 / IBT 4.892 Surf 5,022' TUBING DETAIL 2-7/8” Tubing 6.4/ L-80 / 8rd EUE 2.441 Surf 3,489.5’ JEWELRY DETAIL No Depth Item 1 21’ Tubing Hangar 2 3,346’ X Profile Nipple (2.313”) 3 3,380’ On / Off Tool w/ 2.313 “X” Profile 4 3,382’ 5-1/2” 14-20# AS1-X Ret. Prod Packer w/ Carbide 5 3,388’ 3-1/2” Production Overshot w/ 2-7/8” EUE Box 6 3,389’ 3-1/2” Hook Up Nipple w/ 2-7/8” EUE Pin 7 3,394' Cement Stage Collar 7A 3,440’ CIBP w/ 26’ of cement – TOC @ 3,414’ (7-10-20) 8 3,460’ NU 10RD X .02 Gauge GP Screen 30’ Wrap 9 3,489’ 2-7/8” NU101RD X 2-7/8” EUE 8RD Crossover 10 3,489.5’ 2-7/8” Gravel Pack Bull Plug 11 3,490’ Sand on Top of CIBP 12 3,492’ 5-1/2” 13-23# CIBP 13 3,700’ CIBP PERFORATION DETAIL Zone Top (MD) Btm (MD) Top (TVD) Btm (TVD) FT Date Status Undefined Sterling 3,479’ 3,487’ 3,385’ 3,393’ 8’ 6/7/2013 Open Sterling pool 3 3,723' 3,740' 3,613' 3,630' 17' 9/1/2006 Isolated 3,756' 3,766' 3,645' 3,654' 10' 9/1/2006 Isolated 3,820' 3,836' 3,705' 3,720' 16' 8/14/2008 Isolated OPEN HOLE / CEMENT DETAIL 9-5/8" 12-1/4" hole w/ Type 1 cmt. Top Job= 400sks (92bbls), 15ppg, 1 bbl of cement to surface. Bottom Job= 340sks (150.35 bbls), 12 ppg 8-1/2” 8-1/2" hole w/ Class G cmt. 250sks(82 bbls), 12.7 ppg- trace to surface. Bottom Plug= 260sks (10) bbls), 13.5 NOTE: Kink in casing @3,750’-3,775’ KB. 3.80 GR will pass, but not a 16’ 3- 3/8” gun. This could be parted casing, reason for well going down. 7A 3,440’CIBP w/ 26’ of cement – TOC @ 3,414’ (7-10-2 cement plug Isolated by tubing plug topped by cement. Pressure test successful. SFD 7/13/2020 Data Collection Report Chassis Left Scale Right Scale Serial Number 823373 822132 567620 Datatype Lower Upper Units PSI G PSI G Lower HILCORP KU 21-07X PTD 206-029 1500 psi pressure test 7/11/2020 0.0 0.2 0.4 0.6 0.8 1.0 1.2 0 200 400 600 800 1000 1200 1400 1600 1800 PSI GPSI G Elapsed Time hh:mm:ss Tag 3 - 11-Jul-20, 12:50:09, 3239 PSI G PSI G 1. Type of Request: Abandon Plug Perforations Fracture Stimulate Repair Well Operations shutdown Suspend Perforate Other Stimulate Pull Tubing Change Approved Program Plug for Redrill Perforate New Pool Re-enter Susp Well Alter Casing Other: ___________________ 2.Operator Name:4.Current Well Class:5. Permit to Drill Number: Exploratory Development 3.Address:Stratigraphic Service 6.API Number: 7.If perforating:8.Well Name and Number: What Regulation or Conservation Order governs well spacing in this pool? Will planned perforations require a spacing exception?Yes No 9. Property Designation (Lease Number):10. Field/Pool(s): 11. Total Depth MD (ft): Total Depth TVD (ft): Effective Depth MD: Effective Depth TVD: MPSP (psi):Plugs (MD):Junk (MD): 5,032'3490 (fill) Casing Collapse Structural Conductor 1,950psi Surface 3,090psi Intermediate Production 4,910psi Liner Packers and SSSV Type:Packers and SSSV MD (ft) and TVD (ft): 12. Attachments: Proposal Summary Wellbore schematic 13. Well Class after proposed work: Detailed Operations Program BOP Sketch Exploratory Stratigraphic Development Service 14. Estimated Date for 15. Well Status after proposed work: Commencing Operations:OIL WINJ WDSPL Suspended 16.Verbal Approval:Date:GAS WAG GSTOR SPLUG Commission Representative: GINJ Op Shutdown Abandoned Taylor Wellman 777-8449 Contact Name: Mike Quick Operations Manager Contact Email: Contact Phone: 777-8442 Date: Conditions of approval: Notify Commission so that a representative may witness Sundry Number: Plug Integrity BOP Test Mechanical Integrity Test Location Clearance Other: Post Initial Injection MIT Req'd? Yes No Spacing Exception Required? Yes No Subsequent Form Required: APPROVED BY Approved by: COMMISSIONER THE COMMISSION Date: Comm. Comm. Sr Pet Eng Sr Pet Geo Sr Res Eng mquick@hilcorp.com 4,885'3,490'3,395'1512 psi 3490; 3700 5-1/2" Production Packer 3382' MD / 3300' TVD Perforation Depth TVD (ft): Tubing Size: COMMISSION USE ONLY Authorized Name: Tubing Grade:Tubing MD (ft): See Attached Schematic STATE OF ALASKA ALASKA OIL AND GAS CONSERVATION COMMISSION APPLICATION FOR SUNDRY APPROVALS 20 AAC 25.280 FEDA 028142 206-029 50-133-20558-00-00 Kenai Unit (KU) 21-07X Kenai Gas Field / Sterling Undefined Gas Pool Length Size 20AAC25.055 Hilcorp Alaska, LLC 3800 Centerpoint Dr, Suite 1400 Anchorage Alaska 99503 PRESENT WELL CONDITION SUMMARY 6.45# / L-80 TVD Burst 3,489' 5,320psi MD 3,450psi 5,750psi 126' 1,525' 126' 1,525' 4,885'5-1/2" 13-3/8" 9-5/8" 126' 1,525' 5,032' Perforation Depth MD (ft): See Attached Schematic 5,032' Authorized Title: 17.I hereby certify that the foregoing is true and the procedure approved herein will not be deviated from without prior written approval. Authorized Signature: July 16, 2020 2-7/8" Perforate Repair Wepair Well Exploratory Stratigraphic Development Service BOP TestMechanical Integrity Test Location Clearance No No Wellbore schematic Form 10-403 Revised 3/2020 Approved application is valid for 12 months from the date of approval. By Samantha Carlisle at 11:43 am, Jul 02, 2020 320-282 Digitally signed by Taylor Wellman DN: cn=Taylor Wellman, ou=Users Date: 2020.07.02 11:31:02 -08'00' Taylor Wellman DSR-7/6/2020DLB 07/02/20 X X 10-404 VTL 7/7/20Comm 7/7/2020 dts 7/7/2020 RBDMS HEW 7/8/2020 Well Prognosis Well: KU 21-07X Date: 7-2-2020 Well Name: KU 21-07X API Number: 50-133-20558-00 Current Status: Gas well Leg: N/A Estimated Start Date: July 16, 2020 Rig: E-line Reg. Approval Req’d? Yes Date Reg. Approval Rec’vd: Regulatory Contact: Donna Ambruz 777-8305 Permit to Drill Number: 206-029 First Call Engineer: Michael Quick (907) 777-8442 (O) (907) 317-2969 (C) Second Call Engineer: Ted Kramer (907) 777-8420 (O) (985) 867-0665 (C) AFE Number: Maximum Expected BHP: ~ 1,512 psi @ 3,360’ TVD (Based on 0.45 psi/ft gradient) Max. Potential Surface Pressure: ~ 1,361 psi @ 3,360’ TVD (Based on expected BHP and gas gradient to surface (0.10psi/ft) Brief Well Summary KU 21-07X is a gas well that has not produced since water breakthrough in 2013. It has a gravel pack completion ran in August 2013 across the open perforation interval. Hilcorp is reviewing this well for sidetrack opportunities in the future. The purpose of this sundry is to isolate the open perforations in the Sterling undefined pool, with a 2-7/8” CIBP and dump bailed cement. Notes Regarding Wellbore Condition x Last slickline tag at 3496’ (PBTD) with 2-1/4” dump bailer on 11/7/2013. Fluid level was at 2406’. E-Line Procedure 1. MIRU e-line and pressure control equipment. PT lubricator to 3,500 psi High / 250 psi Low. 2. RIH with GR to ~3450’, POOH. 3. RIH with 2-7/8” CIBP and set at +/-3,440’, POOH. 4. RIH and tag plug to confirm location, and dump bail 25’ (0.13 bbl) of cement on top of plug, POOH. 5. RD e-line. 6. Pressure test 2-7/8” tubing and plug to 1500 psi. Attachments: 1. Current Well Schematic 2. Proposed Well Schematic _____________________________________________________________________________________ Revised By: TDF 9/10/2013 SCHEMATIC Kenai Gas Field Well: KU 21-07X Last Completed: 9/1/2006 PTD: 206-029 CASING DETAIL Size Type Wt/ Grade/ Conn ID Top Btm 13-3/8' Conductor 68 / K-55 12.415 Surf 126' 9-5/8" Surface 40 / L-80 8.679 Surf 1,525' 5-1/2" Production 17 / J-55 / IBT 4.892 Surf 5,022' TUBING DETAIL 2-7/8” Tubing 6.4/ L-80 / 8rd EUE 2.441 Surf 3,489.5’ JEWELRY DETAIL No Depth Item 1 21’ Tubing Hangar 2 3,346’ X Profile Nipple (2.313”) 3 3,380’ On / Off Tool w/ 2.313 “X” Profile 4 3,382’ 5-1/2” 14-20# AS1-X Ret. Prod Packer w/ Carbide 5 3,388’ 3-1/2” Production Overshot w/ 2-7/8” EUE Box 6 3,389’ 3-1/2” Hook Up Nipple w/ 2-7/8” EUE Pin 7 3,394' Cement Stage Collar 8 3,460’ NU 10RD X .02 Gauge GP Screen 30’ Wrap 9 3,489’ 2-7/8” NU101RD X 2-7/8” EUE 8RD Crossover 10 3,489.5’ 2-7/8” Gravel Pack Bull Plug 11 3,490’ Sand on Top of CIBP 12 3,492’ 5-1/2” 13-23# CIBP 13 3,700’ CIBP PERFORATION DETAIL Zone Top (MD) Btm (MD) Top (TVD) Btm (TVD) FT Date Status Undefined Sterling 3,479’ 3,487’ 3,385’ 3,393’ 8’ 6/7/2013 Open Sterling pool 3 3,723' 3,740' 3,613' 3,630' 17' 9/1/2006 Isolated 3,756' 3,766' 3,645' 3,654' 10' 9/1/2006 Isolated 3,820' 3,836' 3,705' 3,720' 16' 8/14/2008 Isolated OPEN HOLE / CEMENT DETAIL 9-5/8" 12-1/4" hole w/ Type 1 cmt. Top Job= 400sks (92bbls), 15ppg, 1 bbl of cement to surface. Bottom Job= 340sks (150.35 bbls), 12 ppg 8-1/2” 8-1/2" hole w/ Class G cmt. 250sks(82 bbls), 12.7 ppg- trace to surface. Bottom Plug= 260sks (10) bbls), 13.5 NOTE: Kink in casing @3,750’-3,775’ KB. 3.80 GR will pass, but not a 16’ 3- 3/8” gun. This could be parted casing, reason for well going down. _____________________________________________________________________________________ Updated by DMA 07-02-20 PROPOSED SCHEMATIC Kenai Gas Field Well: KU 21-07X Last Completed: 9/1/2006 PTD: 206-029 TD =5,032’ PBTD = 4,939’ 2 3 4 RKB: MSL = 87’ / 21 AGL 1 8 6 7 13 10 11 12 TOF tagged @ 3,921’ WLM 3/21/13 13-3/8” 9-5/8”5 5-1/2” 9 5 Undefined Sterling Gas Sand TOC 3,656’ Tagged 6/7/2013 7A X CASING DETAIL Size Type Wt/ Grade/ Conn ID Top Btm 13-3/8' Conductor 68 / K-55 12.415 Surf 126' 9-5/8" Surface 40 / L-80 8.679 Surf 1,525' 5-1/2" Production 17 / J-55 / IBT 4.892 Surf 5,022' TUBING DETAIL 2-7/8” Tubing 6.4/ L-80 / 8rd EUE 2.441 Surf 3,489.5’ JEWELRY DETAIL No Depth Item 1 21’ Tubing Hangar 2 3,346’ X Profile Nipple (2.313”) 3 3,380’ On / Off Tool w/ 2.313 “X” Profile 4 3,382’ 5-1/2” 14-20# AS1-X Ret. Prod Packer w/ Carbide 5 3,388’ 3-1/2” Production Overshot w/ 2-7/8” EUE Box 6 3,389’ 3-1/2” Hook Up Nipple w/ 2-7/8” EUE Pin 7 3,394' Cement Stage Collar 7A ±3,440’CIBP w/ 25’ of cement –TOC @ 3,415’ 8 3,460’ NU 10RD X .02 Gauge GP Screen 30’ Wrap 9 3,489’ 2-7/8” NU101RD X 2-7/8” EUE 8RD Crossover 10 3,489.5’ 2-7/8” Gravel Pack Bull Plug 11 3,490’ Sand on Top of CIBP 12 3,492’ 5-1/2” 13-23# CIBP 13 3,700’ CIBP PERFORATION DETAIL Zone Top (MD) Btm (MD) Top (TVD) Btm (TVD) FT Date Status Undefined Sterling 3,479’ 3,487’ 3,385’ 3,393’ 8’ 6/7/2013 Open Sterling pool 3 3,723' 3,740' 3,613' 3,630' 17' 9/1/2006 Isolated 3,756' 3,766' 3,645' 3,654' 10' 9/1/2006 Isolated 3,820' 3,836' 3,705' 3,720' 16' 8/14/2008 Isolated OPEN HOLE / CEMENT DETAIL 9-5/8" 12-1/4" hole w/ Type 1 cmt. Top Job= 400sks (92bbls), 15ppg, 1 bbl of cement to surface. Bottom Job= 340sks (150.35 bbls), 12 ppg 8-1/2” 8-1/2" hole w/ Class G cmt. 250sks(82 bbls), 12.7 ppg- trace to surface. Bottom Plug= 260sks (10) bbls), 13.5 NOTE: Kink in casing @3,750’-3,775’ KB. 3.80 GR will pass, but not a 16’ 3- 3/8” gun. This could be parted casing, reason for well going down. STATE OF ALASKA ALASKA/AND GAS CONSERVATION COMMISSI� OTV REPORT OF SUNDRY WELL OPERATIONS 1.Operations Abandon U Repair Well U • Plug Perforations u 'Perforate u • Other[j Flow Test Performed: Alter Casing ❑ Pull Tubing❑ Stimulate-Frac 0 Waiver ❑ Time Extension❑ Change Approved Program ❑ Operat.Shutdown❑ Stimulate-Other ❑ Re-enter Suspended Well❑ 2.Operator 4.Well Class Before Work: 5.Permit to Drill Number: Name: Hilcorp Alaska,LLC Development 0 Exploratory ❑ 206-029 3.Address: 3800 Centerpoint Drive,Suite 100 Stratigraphic El Service ❑ 6.API Number: Anchorage,Alaska 99503 50-133-20558-00 7.Property Designation(Lease Number): 8.Well Name and Number: FEDA-028142 • Kenai Unit 21-7X ' 9.Logs(List logs and submit electronic and printed data per 20AAC25.071): 10.Field/Pool(s): N/A Kenai Gas Field Sterling Undefined Gas• 11.Present Well Condition Summary: RECEIVED 3,490 Total Depth measured 5,032 feet Plugs measured 3,700 feet [P 1 2145 true vertical 4,885 feet Junk measured 3,490(Fill) feet ��'" Effective Depth measured 3,490 feet Packer measured 3,382 feet OGCC true vertical 3,395 feet true vertical 3,296 feet Casing Length Size MD TVD Burst Collapse Structural Conductor 126' 13-3/8" 1236' 126' 3,450psi 1,950psi Surface 1,525' 9-5/8" 1,525' 1,525' 5,750psi 3,090psi Intermediate Production 5,032' 5-1/2" 5,032' 4,885' 5,320psi 4,910psi Liner �r , '3,, i _,y∎,- Perforation depth Measured depth See Attached Schematic w7��O`" True Vertical depth See Attached Schematic Tubing(size,grade,measured and true vertical depth) 2-7/8" 6.45#/L-80/8RD EUE 3,489.5' 3,395' Packers and SSSV(type,measured and true vertical depth) N/A N/A N/A N/A 12.Stimulation or cement squeeze summary: N/A Intervals treated(measured): N/A Treatment descriptions including volumes used and final pressure: N/A 13. Representative Daily Average Production or Injection Data Oil-Bbl Gas-Mcf Water-Bbl Casing Pressure Tubing Pressure Prior to well operation: 0 0 0 645 1,321 Subsequent to operation: 0 2029 346 645 944 14.Attachments: 15.Well Class after work: Copies of Logs and Surveys Run N/A Exploratory Development o• Service ❑ Stratigraphic ❑ Daily Report of Well Operations X 16.Well Status after work: Oil ❑ Gas II • WDSPL❑ GSTOR ❑ WINJ ❑ WAG ❑ GINJ ❑ SUSP❑ SPLUG❑ 17.I hereby certify that the foregoing is true and correct to the best of my knowledge. Sundry Number or N/A if C.O.Exempt: 313-326 Contact Jeremy Mardambek Email jmardambekAhilcorp.com Printed Name Jeremy Mardambek Title Reservoir Engineer Signature Phone 907-777-8388 Date 9/10/2013 Form 10-404 Revised 10/2012 l�� /� R: �gi�rigip�lQnjy 2 24 �, l/ ytr 1 • enai Gas Field Well: KU 21-07X SCHEMATIC Last Completed: 9/1/2006 Hilcora Alaska,LLC PTD: 206-029 CASING DETAIL RK13:MSL=87'121 AGL Size Type Wt/Grade/Conn ID Top Btm 13-3/8' Conductor 68/K-55 12.415 Surf 126' 1 9-5/8" Surface 40/L-80 8.679 Surf 1,525' 5-1/2" Production 17/J-55/IBT 4.892 Surf 5,022' TUBING DETAIL 133/8 I 2-7/8" Tubing 6.4/L-80/8rd EUE I 2.441 Surf 3,489.5' JEWELRY DETAIL No Depth Item 1 21' Tubing Hangar 2 3,346' X Profile Nipple(2.313") 3 3,380' On/Off Tool w/2.313"X"Profile 9-5/8"I i 4 3,382' 5-1/2"14-20#AS1-X Ret.Prod Packer w/Carbide 5 3,388' 3-1/2"Production Overshot w/2-7/8"EUE Box 6 3,389' 3-1/2"Hook Up Nipple w/2-7/8"EUE Pin 7 3,394' Cement Stage Collar 8 3,460' NU LORD X.02 Gauge GP Screen 30'Wrap 9 3,489' 2-7/8"NU101RD X 2-7/8"EUE 8RD Crossover 10 3,489.5' 2-7/8"Gravel Pack Bull Plug 11 3,490' Sand on Top of CIBP 12 3,492' 5-1/2"13-23#CIBP 13 3,700' CIBP PERFORATION DETAIL Top Btm Top Btm Zone FT Date Status (MD) (MD) (TVD) (TVD) Undefined 3,479' 3,487' 3,385' 3,393' 8' 6/7/2013 Open 2 Sterling 3,723' 3,740' 3,613' 3,630' 17' 9/1/2006 Isolated H Sterling 3,756' 3,766' 3,645' 3,654' 10' 9/1/2006 Isolated pool 3,820' 3,836' 3,705' 3,720' 16' 8/14/2008 Isolated 3 OPEN HOLE/CEMENT DETAIL ' 4 12-1/4"hole w/Type 1 cmt.Top Job=400sks(92bbls),15ppg,1 bbl of cement to surface. Bottom Job= _5 9-5/8"BE■6 340sks(150.35 bbls),12 ppg 8-1/2"hole w/Class G cmt. 25051(5(82 bbls),12.7 ppg-trace to surface. Bottom Plug=260sks(10)bbls), J I L. 8-1/2" 13.5 -1 7 r 8 NOTE: Kink in casing @3,750'-3,775'KB. 3.80 GR will pass,but not a 16'3- 3/8"gun. 9 ' It4.1 " Undefined Steriing 10 ` 'Gas Sand 11, , TOC 3,656' 12 Tagged 6/7/2013-1 r 13 TOF tagged @ 3,921'WLM 3/21/13 y 5-1/2"L', ,a TD=5,032' PBTD=4,939' Revised By:TDF 9/10/2013 • • Hilcorp Alaska LLC { Weekly Operations Summary Well Name API Number Well Permit Number Start Date End Date KU 21-7X 50-133-20558-00 206-029 8/11/13 8/18/13 Daily Operations: 8/7/2013-Wednesday No operations to report. 8/8/2013-Thursday No operations to report. 8/9/2013-Friday No operations to report. 8/10/2013-Saturday Mobe in and rig up. 8/11/2013-Sunday Monitor well-SITP 1,300 psi. Continue RU. ND casing valve and SSV, MU pump-in flange. Begin hauling water and filtering. Kill well. Pump 60 bbls and monitor well-700psi. Pump 70 bbls and monitor well-0 psi but flowing fluid. Pump 80 bbls and monitor well-dead. Set BPV and ND wellhead. Inspect bowl and test fit tubing hanger and test plug. NU DSA and mudcross. NU double rams and annular. RU rig floor. Connect choke and kill lines. MU 2-7/8"test joint. Fill stack and shell test. Troubleshoot leaks on lockdown screws. Tighten floor valve connections. Test BOPE as follows:annular 250psi low/ 2,500psi high. 2-3/8"x 3-1/2"VBR's,blinds,TIW, IBOP, NCR's,and choke and kill manifold valves to 250psi low/3,000psi high. All components passed. Jim Regg,AOGCC waived witness 8/10/13 @ 15:30. LD landing joint and test plug. Pull BPV- well dead. Secure well and shut down for night. 8/12/2013-Monday Monitor well-trace gas. RU hydraulic catwalk, rack and tally tubing. Rig crew left well open to tank to monitor and did not notice well unload until gas reached surface. Pump 60bbls back in well and shut in @ 1,500psi for 1 hour,slight increase. Slowly blow down to 750psi and flowing steady fluid, pump 49bbls and shut in @ 1,500psi for 1 hour,slight increase. Slowly blow down to 400psi and flowing steady fluid, pump 45bbls and shut in @ 1,500psi for 1 hour,slight increase. Slowly blow down to 250psi and flowing steady fluid, pump 4lbbls and shut in @ 1,500psi for 1 hour, no increase. Slowly blow down to 350psi and shut in for 1 hour and built to 450psi. Slowly blow down to 150psi and flowing steady fluid,fluid coming back gas- cut. Pump 44bbls and shut in @ 1,300psi. Secure well and shut down for night. • • 8/13/2013-Tuesday Monitor well-SITP 1,325psi. Slowly bleed gas to 100psi. Pump 7 bbl @ 0.25bbl/min to 250psi and shut in. RU Pollard wireline to check for fill. Flange up lubricator. SITP 250psi, slowly bleed to 100psi w/4bbl fluid returned. Pump 9bbl @ 0.25bb1/min to 250psi and shut in. PT lubricator to 1,500psi,bleed back to 250psi before opening to well. RIH w/RS, 10' stem, KJ,OJ,SJ,and 3" DD bailer. Tag fill @ 3,209'WLM RKB and drive down to 3,211', POOH. RD Pollard. SITP 250psi, slowly bleed to 100psi w/1bbl fluid returned. Pump 8bbl @ 0.25bb1/min to 500psi and shut in. SITP 500psi,slowly bleed to Opsi w/little fluid returned. Monitor well and well dead. RIH w/2-7/8" mule shoe on 2-7/8" EUE tubing to 2,000'. Circulate while rack and tally tubing. Fluid returning heavily gas-cut. RIH w/mule shoe to top of fill. RU shakers and lines to reverse circulate. Begin reverse circulating down through fill,3,2201-3,250'. Attempting to filter returns(2-5 micron) between return tank and suction tank but filters plugging off very quickly. Decision to not filter fluid while washing fill. Reverse circulate fill from 3,250'-3,495'. Circulating returns clean before connections. Tag CIBP @ 3,495'MD RKB. LD single and stand back 5 stands to 3,150'. Fill hole. Secure well and shut down for night. • • • Hilcorp Alaska LLC Weekly Operations Summary Well Name API Number Well Permit Number Start Date End Date KU 21-7X 50-133-20558-00 206-029 8/11/13 8/18/13 8/14/2013-Wednesday Monitor well-on vacuum. Pump 5bbls to fill hole. RIH 5 stands and tag fill @ 3,486' MD RKB (corrected to wireline measurement). Reverse out fill to CIBP @ 3,492'. Displace hole volume with 2-5 micron filtered brine, pumped 80bbls and returns clean. POOH and LD 4 joints. RU to begin gravel pre-pack. Establish circulating rates: 1BPM @ 100 psi, 2BPM @ 200 psi. Establish injecting rates: 1BPM @ 250 psi, 2BPM @ 475 psi. Pump 700lbs of 12/20 Econo-Prop gravel pack sand and spot to end of tubing,close casing valve and begin injecting sand until screened out @ 1,400 psi with 2 BPM reduced pumps to 0.5 BPM @ 1,600psi and shut down. Held pressure for 5 min and bled back. RIH 4 joints and tag gravel @ 3,446'. 600lb gravel inside casing, 100lb gravel outside perfs (12.5 lb/ft of perforations). Reverse circulate out gravel from 3,446'-3,492' (CIBP). Circulate until returns clean. POOH 4 stands. Wait 30 min to ensure gravel is packed in perforations. RIH 4 stands and tag CIBP @ 3,492'- no fill. LD 4 joints. POOH w/2-7/8" mule shoe on 2-7/8"tubing to pick up screen assembly. MU screen/crossover tool/squeeze packer assembly: bull plug, 2-7/8"x 30'0.020 GA screen w/4.5"centralizers, (2)joints of 2- 7/8" blank pipe w/4.5"centralizers,3-1/2" hook-up nipple, 2-7/8" left-hand sub, 2-7/8" clutch joint, 5 1/2"CS-1 packer w/ crossover tool,and 2-7/8"x 6' pup joint. Below crossover tool are (3)joints of 1-1/4"CS washpipe run inside blank pipe and screen. RIH slowly w/screen/crossover tool/squeeze packer assembly on 2-7/8"tubing to top of perfs. RIH and tag fill @ 3,486'-6' above CIBP,putting bottom of screen 2'above bottom shot. Confirm tag several times and last tag very sticky on bottom. Decsision to POOH and LD screen/crossover tool/squeeze packer assembly and clean out before running screen assembly. LD single and pup joint, POOH 5 stands. Secure well and shut down for night. 8/15/2013-Thursday Monitor well-on vacuum. Pump 8bbls to fill hole. POOH w/tbg&screen. LD screen. PU MU mule shoe&tbg.TIH &tagged fill @ 3,476'total of 16'fill. Started washing&circulating down to CIBP 3,492'. POOH 3 stands&waited 1 hr. TIH w/3 stands and tagged CIBP @ 3,492'w/no fill. POOH slowly w/mule shoe&LD shoe. PU MU Gravel pack assembly&screen. TIH and tagged fill @ 3,480'set down 6 points on screen. POOH w/5 stands. SI secure well SDFN. 8/16/2013- Friday Monitor well- Pump Obbls to fill hole. POOH w/Gravel pack assembly&screen. PU MU mule shoe&tbg. TIH &tagged fill @ 3,479'total of 13'fill. Started washing&circulating down to CIBP 3,492'. Increased fluid weight from 8.5#to 8.8#KCL Established circulation rate: 1BPM 0 psi. 2BPM 150psi. Established injection rate: 1 BPM 150psi. 2 BPM 350 psi. Started Pre- pak @ 2 BPM circ. Pump 700Ibs of 12-20 gravel pack sand. Shut off returns 5 bbls from end of tubing to inject into formation. Final pre-pak pressure was 1,500psi.Pressure dropped to 850psi in 5 min&450psi in 50 min. Pressured up tbg to 1,500psi SI and monitor well over night.SI secure well SDFN. • 8/17/2013-Saturday SITP=700psi. Bled down to Opsi in less then a min. Started washing&circulating down&tagged sand @ 3,452'. Wash down to CIBP @ 3,492' POOH w/1 jt and circulated 8.8Ibs fluid across perfs. Waited 1 hr. TIH to 3,492',POOH w/mule shoe and LD shoe. PU MU Gravel pack assembly&screen. TIH and set down 3' below perfs. Set PKR w/13K compression. Test Backside to 550psi. Test good. Established circulation rate: 1BPM Opsi. 2BPM 300psi. Established injection rate: 1 BPM 300psi. 2 BPM 575psi. Started gravel pack @ 2BPM.Pump a total of 5501bs of 12-20 gravel pack sand. Final pack pressure was 1,750psi.Pressured back up 2 more times to 1,750psi. Open by-pass on PKR& reverse out 2 tubing volumes with no sand in returns. Release PKR LD 1 jt&SB 3 stands. SI secure well SDFN. 8/18/2013 -Sunday Finish POOH w/tbg&Gravel pack&tbg. PU MU 5-1/2"171b AS1-X Packer w/2-7/8" 6.51b L-80 tbg. Ran 1 jt,2.313"X-nipple and tbg. TIH &Tagged top of hook up nipple @ 3,388'. Latch up and set PKR w/8K compression. Pulled 15K over making sure PKR was set. Test backside to 1,000psi for 5 min. Test good. Release from on &off tool.Space out tbg and install hanger. Latch up and land tbg. Release from PKR Pickup 30' &circulate PKR fluid. Latch back up&Test backside to 2,000psi for 30 min. Test good. ND BOPE. NU production tree. RDMO turn over to production. 8/19/2013-Monday No operations to report. 89/20/2013-Tuesday No operations to report. STATE OF ALASKA , • ` i ALASKA OIL AND GAS CONSERVATION COMMISSION APPLICATION FOR SUNDRY APPROVALS ;_ .( =%a R0, 20 AAC 25.280 1. Type of Request: Abandon ❑ Plug for Redrill ❑ Perforate New Pool ❑ Repair Well ❑ Change Approved Program ❑ Suspend ❑ Plug Perforations ❑ Perforate ❑ Pull Tubing ❑ Time Extension ❑ Operations Shutdown ❑ Re -enter Susp. Well ❑ Stimulate ❑ Alter Casing ❑ Other: Clean -out & Complete 0 . 2. Operator Name: 4. Current Well Class: 5. Permit to Drill Number: Hilcorp Alaska, LLC Exploratory ❑ Development ID 206 -029 - 3. Address: Stratigraphic ❑ Service ❑ 6. API Number. 3800 Centerpoint Drive, Anchorage AK, 99503 50- 1333 - +0 ■ , - 7. If perforating: 8. Well Name and Nutr What Regulation or Conservation Order governs well spacing in this pool? 20AAC25.055 fl a' Will planned perforations require a spacing exception? Yes ❑ No 0 ` enai Unit 21 - - 9. Property Designation (Lease Number): 10. Field /Pool(s): FEDA - 028142 Kenai Gas Fielc4 • ling Pool 3 11. PRESENT WELL CONDITION SUMMARY Total Depth MD (ft): Total Depth TVD (ft): Effective Depth MD (ft): Effective Depth TVD (ft): 'ut easured): Junk (measured): 5,032 4,885' 4,221' 4,085 II 3,656' N/A Casing Length Size MD % Burst Collapse Structural Iv Conductor 126' 13 -3/8" 126' C 6' 3,450psi 1,950psi Surface 1,525' 9 -5/8" 1,525' 1,525' 5,750psi 3,090psi Intermediate Production 5,032' 5 -1/2" 5,032' V, 4 :f' 5,320psi 4,910psi Liner Perforation Depth MD (ft): Perforation Depth TVD (ft): Tubing Size: i Tubi ! Grade: Tubing MD (ft): See Attached Schematic See Attached Schematic N/A N/A N/A Packers and SSSV Type: - a V r n V M si (ft) and TVD (ft): N/A and N/A N/A and N/A 12. Attachments: Description Summary of Proposal 0 .-- 13. 11 ss after proposed work: • Detailed Operations Program ❑ BOP Sketch 0 Explora ory ❑ Stratigraphic ❑ Development a Service ❑ 14. Estimated Date for _ 15. Well Status after proposed work: Commencing Operations: 6/19/2013 Oil ❑ Gas Et '' WDSPL ❑ Suspended ❑ 16. Verbal Approval: Date: N/ WINJ ❑ GINJ ❑ WAG ❑ Abandoned [❑ Commission Representative: N/A GSTOR ❑ SPLUG ❑ 17. I hereby certify that the foregoing is true and correct to the • -st of my knowledge. Contact Bob Kendrick Email rkendrick @hilcorp.com Printed Name Jeremy Mardambek Title Reservoir Engineer Signature Phone 907 - 777 -8388 Date 6/13/2013 COMMISSION USE ONLY Conditions of approval: Notify Commission sot .t a representative may witness Sundry Number: Plug Integrity ❑ BOP Test F Mechanical Integrity Test ❑ Location Clearance ❑ Other: 2 ,: a0. fist 1wP 1 E — RBDMS JUN 2 6 20 Z5 Co /S / t ,---1 5- /_ � S J CANNED JUN 2 7 2D13 Spacing Exception Required? Yes ❑ No 4 Subsequent Form Required: / Q _ / / APPROVED BY Approved by: COMMISSIONER THE COMMISSION Date: '� ) ', 6 - •18 .13 Submit Form and y 1 Form 10 -403 (Revised 10/2012) App i O i I 12 months from the te of appr oval. Aenlito J 7 \ CRS i� u • • Perforation Add Well: KU 21 -07X Hilcorp Alaska, LLi Date: 6/14/2013 Well Name: KU 21 -07X API Number: 50- 133 - 20558 -00 -00 Current Status: Gas Producer Permit to Drill Number: 206 -029 Estimated Start Date: 5/24/2013 Rig Cloverleaf Reg. Approval Req'd? 10 -403 Date Reg. Approval Rec'vd: Regulatory Contact: Tom Fouts 777 -8398 (907) 777 -8398 (0) (907) 351 -5749 (M) First CaII Engineer: Shane Bennett (907) 777 -8425 (0) (325) 203 -7487 (M) Second Call Engineer: Jeremy Mardambek (907) 777 -8388 (0) (561) 512 -8690 (M) AFE Number: Current Bottom Hole Pressure: — 1,480psi Calculated from FL and SITP Maximum Expected BHP: — 1,543psi @ 3,420' TVD Calculated from 0.433 psi /ft gradient Max. Anticipated Surface Pressure: — 1,400psi Corrected from Max BHP Brief Well Summary KU 21 -07X was drilled in 2006 as a Sterling Pool test well. It penetrated all the Sterling Sands at the crest of the structure and was perforated in Pool 3 (A -10 & A -11 sands). The well made gas initially but loaded up due to the 5.5" monobore completion. On 6/5/2013 a plug was set over the existing non - productive Pool 3 perforations and the well was perforated in the A -6 Sands which flowed at high rates ( >5 MMSCFD and >500 BWPD) but also brought in some sand. The sand cut out several chokes when the FTP was dropped to keep the well unloaded. On 6/10/2013 SL tagged @ 3459' SLM which is 20' above the top perforation at 3479' MD indicating the water production is bringing in sand. Justification: KU 21 -07X was drilled in 2006 as a Sterling Pool test well. It penetrated all the Sterling Sands at the crest of the structure and was perforated in Pool 3 (A -10 & A -11 sands). The well made gas initially but loaded up due to the 5.5" monobore completion. On 6/5/2013 a plug was set over the existing non - productive Pool 3 perforations and the well was perforated in the A -6 Sands which flowed at high rates ( >5 MMSCFD and >500 BWPD) but also brought in some sand. The sand cut out several chokes when the FTP was dropped to keep the well unloaded which because of the large diameter flow created a high velocity. On 6/10/2013 SL tagged @ 3459' SLM which is 20' above the top perforation at 3479' MD indicating the water production is bringing in sand. Risks: Pressure is higher or lower than expected. Summary Procedure: Pre Job Activity Inspect Wellsite and Perform JSA for well intervention with Work -over Rig. Identify all flow lines and pressure piping systems connected to wellhead and located in immediate work area around the wellhead. Isolate same, and decommission. LOTO pressure sources from decommissioned lines. Wellbore preparation activities 1. MIRU slick line equipment and RU Lubricator on well head. PT lubricator to SIWHP. 2. RU and RIH with bailer equipment and tag fill. 3. Bail sand fill to ±3,507' RKB (20' below bottom perforation) • • Perforation Add Well: KU 21 -07X Hi'carp Alaska, LI) Date: 6/14/2013 4. RDMO slick line unit. Wire line intervention operations 5. MIRU Wire line Equipment 6. Pressure test lubricator to SITP 7. RIH with sand screen assembly spacer tubing sub and retrievable packer with plug in place. 8. Space out and correlate depth to center ± 15' screen assy across perforations at 3,479' — 3,487' RKB. 9. Set packer and POOH with wire line tools at ±3,465'. 10. Record surface pressure, bleed -off to zero, and shut in well for 2 hr underbalance pressure test. 11. Load hole with produced water and pressure test plug to 3,000psi surface pressure for 15 minutes. 12. RU wire line set retrievable bridge plug to ±500'. Rig Intervention Operations 13. MIRU Cloverleaf Rig 14. ND wellhead and NU BOP stack and PT to 3,000psi forJn. Note: Notify AOGCC 24 hrs before BOPE testing. 15. RIH with tubing and retrieve RBP.d' 16. RIH with production tubing dressed with on /off tool to latch onto retrievable packer at ±3,465'. 17. Reverse circulate the well to clean and treat packer fluid with bacteriacide. 18. Space out and land tubing with 10,000Ibs compression. PT backside to 3. 00 for 1 s n a ru,tes on chart. 19. ND BOP and NU tree. PT tree to 3,000psi for 15 minutes on chart. 20. RU slick line and pull equalizing prong from plug in top of packer, and then retrieve x profile plug. 21. Swab well to kick off and unload. RD Slick line unit. 22. Close in well and RDMO work over rig. 23. Turn well over to production. Attachments: 1. As -built schematic 2. Proposed Well Schematic 3. BOP Schematic 4. Current wellhead drawing 5. Proposed wellhead drawing. H . • Kenai Gas Field Well: KU 21 -07X SCHEMATIC Last Completed: 9/1/2006 Hilcorp Alaska, LLC PTD: 206 -029 CASING DETAIL RKB: MSL = 87' 121 AGL Size Type Wt/ Grade/ Conn ID Top Btm 13 Conductor 68 / K -55 12.415 Surf 126' 9 -5/8" Surface 40 / L -80 8.679 Surf 1,525' 5 -1/2" Intermediate 17 /1-55 / IBT 4.892 Surf 5,022' `s+ r 13 -3/8 JEWELRY DETAIL ko No Depth Item 1 3,394' Cement Stage Collar i. 2 3,700' CIBP I PERFORATION DETAIL % Top Btm Top Btm 9 - 5/8" 4 Zone FT Date Status (MD) (MD) (TVD) (TVD) Undefined 3,479' 3,487' 3,385' 3,393' 8' 6/7/2013 Open . Sterling 3,723' 3,740' 3,613' 3,630' 17' 9/1/2006 Isolated Sterling 3,756' 3,766' 3,645' 3,654' 10' 9/1/2006 Isolated pool 3,820' 3,836' 3,705' 3,720' 16' 8/14/2008 Isolated OPEN HOLE / CEMENT DETAIL 12 -1/4" hole w/ Type 1 cmt. Top Job= 400sks (92bbls), 15ppg, 1 bbl of cement to surface. Bottom Job= 9-5/8" 340sks (150.35 bbls), 12 ppg 8 -1/2" hole w/ Class G cmt. 250sks(82 bbls), 12.7 ppg- trace to surface. Bottom Plug= 260sks (10) bbls), 8-1/2" 13.5 i t _ 1 TOF @ 3,459' Tagged 6/10/2013 Undefined TOE 3,656' i e, ,4 Sterling Gas Tagged 6/7 /2013 s.. Sand 2 TOF tagged@ • NOTE: 3,921' wLM 3/21/13 Kink in casing @3,750'- 3,775' KB. 3.80 GR will pass, but not a 16' 3- 3/8" gun. ; A te" 1 ': , C 4 ' 1 51/2 ,:t s -':w TD = 5,032' PBTD = 4,939' Revised By: TDF 6/11/2013 • Kenai Gas Field Well: KU 21 -07X PROPOSED Last Completed: 9/1/2006 Hilcorp Alaska, LLC PTD: 206-029 CASING DETAIL RKB:MSL= 87' /21AGL Size Type Wt /Grade /Conn ID Top Btm 13 -3/8' Conductor 68 / K -55 12.415 Surf 126' r' 9-5/8" Surface 40 / L-80 8.679 Surf 1,525' 5-1/2" Production 17 / J -55 / IBT 4.892 Surf 5,022' 4' TUBING DETAIL ev 13-3/8 2 -7/8° Tubing 6.4/ L -80 / 8rd EUE 2.441 Surf ±3,495' r M 3 ■ /,` i JEWELRY DETAIL P i No Depth Item f" 1 3,394' Cement Stage Collar 4i 2 ±3,465' Packer g ti 3 ±3,473' X- Nipple 9-5 /8' 1 4 ±3,480' Screen Assy. 5 3,700' CIBP PERFORATION DETAIL Zone Top (MD) Btm (MD) Top (TVD) Btm (TVD) Date Status Undefined 3,479' 3,487' 3,385' 3,393' 8' 6/7/2013 Open Sterling 3,723' 3,740' 3,613' 3,630' 17' 9/1/2006 Isolated Sterling 3,756' 3,766' 3,645' 3,654' 10' 9/1/2006 Isolated pool 3,820' 3,836' 3,705' 3,720' 16' 8/14/2008 Isolated OPEN HOLE / CEMENT DETAIL 12 -1/4" hole w/ Type 1 cmt. Top Job= 400sks (92bbls), 15ppg, 1 bbl of cement to surface. Bottom Job= 9-5/8" 340sks (150.35 bbls), 12 ppg 8 -1/2" hole w/ Class G cmt. 250sks(82 bbls), 12.7 ppg- trace to surface. Bottom Plug= 260sks (10) bbls), 8 -1/2" 13.5 ■ 1 1 + , - - - , , , 2 , ., 3 Bail to 33,507' q I - ned s ,� Stedin �. t i Sand Tagged 6/7/2013 TOC 3,656' �'x�d' ,� �� 5 j NOTE: TOF tagged @ Kink in casing @3,750'- 3,775' KB. 3.80 GR will pass, but not a 16' 3- 3,921' wLM 3/21/13 3/8" gun. 54/2" TD ==5,, 0 PBTD = 4,939' Revised By: TDF 6/12/2013 • • • . ii Kenai Gas Field KU 21 -07X 06/12/2013 tiitrotp 11roArt.1.1.I; Kenai Gas Field KU 21 -07X 133/8X95/8X51/2 3.98' • Hydril ' GK 11" -5000 tau lil Iil Iii III iii 4t III I!I iv III CI 'U = 2 7/8 -5 variables 4.54 li c. - n 11 "- 5000 ,A i. ,. Blind iii 1 ii l iii Iii Wr 1 lit III ill III ill I 2.00' e ' , . f. f i . r til lit lit lit till r . 4 DSA, 11 5M X7 1/16 5M Tubing head, Special, Vetco- m Ill TGIT,135 /8SM X 7 1/16 SM, I i ! a �� f ' w/ 1- 2 1/16 5M SSO, hi , . 0 1- 41/16 SM EFO w/ internal ' ���I 1' a m ��°' �i ' 1 4" Type H BPV profile, BG -. r ��� bottom I i Multi bowl, Vetco MB -196, �1 1140° Ill 13 5/8 3M stdd bottom X € ' - 4 a , _ ? p , , 13 5/8 5M FE top, w/ x . L 1 1) 1 l∎ a ■ _ r ,� c I �� 2- 2 1/16 5M SSO, i - i . I Starting head, i i Vetco MB -196, .MI1 M k 13 5/8 3M X13 3/8 VG -Loc _ bottom ,w /2 -2 "LPO 4 . r IMI 1111 13 3/8" 9.625" 5.500" • • . fli CURRENT WELLHEAD Kenai Gas Field KU 21 -07X Jiikrorp ,tra.ka.1i,c. 6/12/2013 I Kenai Gas Field KU 21 -07X 133/8X95/8X51/2 BHTA, Otis, 7 1/16 3M FE X 9.5 Otis Quick Union FE AT ant MAIIIIIIIIIIM 1411' d 4iiy14 11011.. .7r.,g44161 s Valve, Gray -C, 7 1/16 3M FE, p ,, AA trim _"^ 6.125" bore - 0 6.12 111 1491 Yom° ' ,'' gyp �_ Iki,4 ! Valve, CIW -FC, 7 1/16 3M FE, ., H WO, AAtrim , 'r; 6.125" bore 41/44,,,,1 h Crossover spool, is l .1 .. ' p''' z " 71 /165MFEX71 /163MFE y \r � 0 �� ` 0 0 Tubing head, Special, Vetco- J a�,a` 1 Ja1� TC -IT, 13 5/8 5M X7 1/16 5M, w/ 1- 2 1/16 5M SSO, 1- 4 1/16 5M EFO w/ internal ! { "" ra 4" Type H BPV profile in EFO, 1 i f' C4 f , ° , Q BG bottom • 1 i e ..._._ 1 hanger, _ 1 1. — Casing ha ge , V etco- Multibowl, Vetco MB -196, OA. V ..�1- - MB196, 13 5/8 X 5 A BTC lift 13 5/8 3M stdd bottom X a T " w/ 5" Type H BPV profile in 13 5/8 5M FE top, w/ ,. hanger 2- 2 1/16 5M SSO, _ , - q NI= -.4k, : ..61- Starting head, , r e . Vetco MB -196, 13 5/8 3M X 13 3/8 VG -Loc bottom, w/ 2- 2" LPO r Jr I- -i 13 3/8" __ 9.625" 5.500" • • • . Ili Kenai Gas Field PROPOSED WELLHEAD KU 21-07X llhhki rp :4[s,.ka. Ilk. 6/12/2013 Kenai Gas Field Tubing hanger, Seaboard S KU 21 -07X EN CCI, 7 X 2 7/8 EUE 8rd lift 13 3/8 X 9 5/8X5 1/2 and susp, w/ 2'/ Type H BPV, CCL port BHTA, Otis, 2 9/16 5M FE X 5 Y. Otis Quick Union t t ®e 1 65 0 ' S Valve, WKM -M, 2 9/16 SM '4;47 ��`0' ' t. 1 o 9 •+J FE, HWO, DD trim 4 ' ' ei 3 � � O ,� ln' SaEec i v ' L � - �ay e I : I I i F'' ornMaill 1100 < 4, ormarm *; li: Valve, WKM -M, 2 9/16 5M IIIV ' FE, HWO, DD trim 4« ; kapati ,rnr; €runt Valve, WKM -M, 2 9/16 5M t q ; . FE, HWO, DD trim . "∎4 h� " A 0 pt Ibt ia t�eWYt Adapter, Seaboard EN {CL, � o � � 7 1/16 5M Stdd btm X'� a N\'' � J 5 a� e <�� 2 9/16 5M stdd top, - -,ms H _ rr- J O O , \ � tih 0 Vr Tubing head, Special, Vetco- I TC IT, 13 5/8 5M X 7 1/16 SM, P. "I e � - w/ 1- 2 1/16 5M SSO, o mil �. � ' � � , Q 1- 4 1/16 SM EFO w/ internal i a 'n { ,a - � I 4" Type H BPV profile, BG bottom y 4. hormaw Casing hanger, Vetco- a�l a � s� � 'A +� MB196, 13 5/8 X 5 BTC lift ', w/ 5" Type H BPV profile in Multibowl, Vetco MB -196, , hanger 13 5/8 3M stdd bottom X ���� E ' 13 5/8 SM FE top, w .,„ H �o z i m I - 2- 2 1/16 5M SSO, a d 1 ' - it Starting head, Vetco MB -196, M W 135 /83MX133 /8VG -Loc_ bottom, w/ 2- 2" LPO - 1.1 -I 13 3/8" 9.625" 5.500" 2.875" • • Schwartz, Guy L (DOA) From: Schwartz, Guy L (DOA) Sent: Wednesday, June 19, 2013 9:25 AM To: 'Jeremy Mardambek' Subject: RE: KU 21 -7X (PTD 206 -029) OK... when you do submit a new sundry request to retract the last sundry ( No. 313 -299 ). It is not approved yet and will hold on to it until then. Guy Schwartz Senior Petroleum Engineer AOGCC 907 - 444 -3433 cell 907 - 793 -1226 office From: Jeremy Mardambek [mailto:jmardambek @ hilcorp.com] Sent: Tuesday, June 18, 2013 5:06 PM To: Schwartz, Guy L (DOA) Subject: RE: KU 21 -7X (PTD 206 -029) We will be submitting a new 10 -403 as soon as we have a gravel pack design for the well. Jeremy Mardambek Reservoir Engineer Hilcorp Alaska Office - (907) 777 -8388 Cell — (561) 512 -8690 From: Schwartz, Guy L (DOA) [mailto:guy.schwartz @alaska.gov] Sent: Tuesday, June 18, 2013 5:05 PM To: Jeremy Mardambek Subject: RE: KU 21 -7X (PTD 206 -029) Should I hold on to this one? Guy Schwartz Senior Petroleum Engineer AOGCC 907 - 444 -3433 cell 907 - 793 -1226 office From: Jeremy Mardambek [mailto:jmardambek @hilcorp.com] Sent: Tuesday, June 18, 2013 4:52 PM To: Schwartz, Guy L (DOA) Cc: Davies, Stephen F (DOA) Subject: RE: KU 21 -7X (PTD 206 -029) Guy, 1 • • We have changed our sand control technique after discussing with the experts. We will be submitting a different sundry in the near future. Jeremy Mardambek Reservoir Engineer Hilcorp Alaska Office - (907) 777 -8388 Cell — (561) 512 -8690 From: Schwartz, Guy L (DOA) [ mailto :guy.schwartz(aalaska.gov] Sent: Tuesday, June 18, 2013 4:42 PM To: Jeremy Mardambek Cc: Davies, Stephen F (DOA) Subject: RE: KU 21 -7X (PTD 206 -029) Nevermind... I just got the sundry to recomplete the well with packer and tubing. Guy Schwartz Senior Petroleum Engineer AOGCC 907 - 444 -3433 cell 907 - 793 -1226 office From: Schwartz, Guy L (DOA) Sent: Tuesday, June 18, 2013 4:33 PM To: 'Jeremy Mardambek' Cc: 'Davies, Stephen F (DOA) (steve.daviesCa alaska.gov)' Subject: RE: KU 21 -7X (PTD 206 -029) Jeremy, I see the well was perfed... how is it doing after intial flowing ?? Do we need to think about a packer and tubing? Saw on the 10 -404 that it was making 3500 mscf and 400 bpd water. Guy Schwartz Senior Petroleum Engineer AOGCC 907 - 444 -3433 cell 907 - 793 -1226 office From: Schwartz, Guy L (DOA) Sent: Monday, June 03, 2013 8:49 AM To: 'Jeremy Mardambek' Cc: 'Davies, Stephen F (DOA) (steve.davies(a>alaska.gov)' Subject: RE: KU 21 -7X (PTD 206 -029) Jeremy, The sundry will likely get approved today ... needs Commissioner signature still. What is your time line for doing the wellwork? Guy Schwartz 2 • • .Senior Petroleum Engineer AOGCC 907 - 444 -3433 cell 907 - 793 -1226 office From: Jeremy Mardambek [mailto:jmardambek ©hilcorp.com] Sent: Monday, June 03, 2013 8:41 AM To: Schwartz, Guy L (DOA) Subject: RE: KU 21 -7X (PTD 206 -029) Guy, Were you going to send me that Sundry as soon as Steve Davies gave the ok on the perforation depths? Steve sent me a note on Friday afternoon but I am unsure if that is his ok. Thanks, Jeremy Mardambek Reservoir Engineer Hilcorp Alaska Office - (907) 777 -8388 Cell — (561) 512 -8690 From: Schwartz, Guy L (DOA) [ mailto:guy.schwartz©alaska.gov] Sent: Friday, May 31, 2013 10:59 AM To: Shane Bennett - (C); Jeremy Mardambek Cc: Davies, Stephen F (DOA); Roby, David S (DOA) Subject: RE: KU 21 -7X (PTD 206 -029) Jeremy, As per our conversation you may flow test the well temporarily without a packer /tubing to determine if the zones are productive. The sundry will detail the conditions of the flow period. I added a box for flow test in the sundry application. Once all zones are tested a new sundry will be required for installing the new completion with packer /tubing /SVS etc. Steve will OK the final perf intervals once he has a chance to review them. Looks like there are some perfs shallower than what was initially proposed. Guy Schwartz Senior Petroleum Engineer AOGCC 907 - 444 -3433 cell 907 - 793 -1226 office From: Schwartz, Guy L (DOA) Sent: Thursday, May 16, 2013 9:59 AM To: Shane Bennett - (C); Jeremy Mardambek (jmardambek@hilcorp.com) Cc: 'Davies, Stephen F (DOA) (steve.davies@alaska.gov)'; 'Roby, David S (DOA) (dave.roby@alaska.gov)' Subject: KU 21 -7X (PTD 206 -029) 3 • • •Shane /Jeremy: This well doesn't currently have a tubing string and packer as required for flow to surface wells. Have you considered that the lower zones you are abandoning may be able to stay on production if produced up smaller tubing? I don't have pressure info on these zones to make that call though. Nonetheless , if you perf the undefined Sterling and it is capable of flowing you will need to run a packer /tubing as per 20 AAC 25.200(d). The Commission will allow short term flow testing to determine commerciality of the new zones but within a short time a packer /tubing will be required. (ie 30 day flow test) Give me a call to discuss this when you can. Guy Schwartz Senior Petroleum Engineer AOGCC 907 - 444 -3433 cell 907 - 793 -1226 office 4 • • 3uo -L) 3 ,, Post Office Box 244027 i i I'`v ` ; tl i; Anchorage, AK 99524 -4027 ililcorp Alaska, LLC 3800 Centerpoint Drive Suite 100 Anchorage, AK 99503 Phone: 907 /777 -8300 June 21, 2013 Fax: 907/777. -8301 Guy Schwartz Senior Petroleum Engineer AOGCC Re: Sundry Withdraw Request for KU 21 -7X Dear Mr. Schwartz: This is to inform you that Hilcorp Alaska, LLC is requesting to withdraw the previous 10- 403 submittal for KU 21 -7X and replace it with the attached submittal dated 6/21/2013. Please feel free to contact me with any questions you may have. Sincerely, ":1 HILCORP ALASKA, LLC Tom Fouts Sr. Regulatory / Operations Tech 907 - 777 -8398 1 • • Davies, Stephen F (DOA) From: Davies, Stephen F (DOA) Sent: Friday, May 31, 2013 11:08 AM To: 'Jeremy Mardambek' Cc: Schwartz, Guy L (DOA) Subject: RE: KU 21 -7X (PTD 206 -029) Jeremy, Thank you. Please be aware that the requirements of 20 AAC 25.055 govern spacing in the Upper Sterling Undefined Gas Pool. Perforations in that pool in other Kenai Unit wells must conform to this statewide spacing regulation. Regards, Steve Davies Sr. Petroleum Geologist Alaska Oil and Gas Conservation Commission (AOGCC) Phone: 907- 7934224 Fax: 907- 276 -7542 From: Jeremy Mardambek [mailto:jmardambek hilcorp.com] Sent: Friday, May 31, 2013 10:58 AM To: Davies, Stephen F (DOA) Cc: Schwartz, Guy L (DOA) Subject: RE: KU 21 -7X (PTD 206 -029) Steve, There are no producers perforated in the upper Sterling. Regards, Jeremy Mardambek Reservoir Engineer Hilcorp Alaska Office - (907) 777 -8388 Cell — (561) 512 -8690 From: Davies, Stephen F (DOA) [mailto: steve.davies@ alaska.gov] Sent: Friday, May 31, 2013 10:53 AM 'To: Jeremy Mardambek Cc: Schwartz, Guy L (DOA) Subject: RE: KU 21 -7X (PTD 206 -029) Jeremy, 1 1 • Are there any other wells within the Kenai Unit that are perforated above the Sterling 3 Gas Pool? If so, which wells and how far away are they from the planned perforations in the KU 21 -7X well? Regards, Steve Davies Sr. Petroleum Geologist Alaska Oil and Gas Conservation Commission (AOGCC) Phone: 907 -793 -1224 Fax: 907 - 276 -7542 From: Jeremy Mardambek [mailto:jmardambek @hilcorp.com] Sent: Thursday, May 30, 2013 4:07 PM To: Schwartz, Guy L (DOA); Shane Bennett - (C) Cc: Davies, Stephen F (DOA); Roby, David S (DOA) Subject: RE: KU 21 -7X (PTD 206 -029) Guy, I know you have been on vacation but let me know when you have some time to talk about this Upper Sterling test. Thanks, Jeremy Mardambek Reservoir Engineer Hilcorp Alaska Office - (907) 777 -8388 Cell — (561) 512 -8690 From: Schwartz, Guy L (DOA) [ mailto:guy.schwartz @alaska.gov] Sent: Thursday, May 16, 2013 9:59 AM To: Shane Bennett - (C); Jeremy Mardambek Cc: Davies, Stephen F (DOA); Roby, David S (DOA) Subject: KU 21 -7X (PTD 206-029) Shane /Jeremy: This well doesn't currently have a tubing string and packer as required for flow to surface wells. Have you considered that the lower zones you are abandoning may be able to stay on production if produced up smaller tubing? I don't have pressure info on these zones to make that call though. Nonetheless , if you perf the undefined Sterling and it is capable of flowing you will need to run a packer /tubing as per 20 AAC 25.200(d). The Commission will allow short term flow testing to determine commerciality of the new zones but within a short time a packer /tubing will be required. (ie 30 day flow test) Give me a call to discuss this when you can. Guy Schwartz Senior Petroleum Engineer AOGCC 2 STATE OF ALASKA ALA. OIL AND GAS CONSERVATION COMMON L } REPORT OF SUNDRY WELL OPERATIONS , } ,. {ps' 1. Operations Abandon ❑ Repair Well U . Plug Perforations izi ' Perforate U •Other J Flow Test Performed: Alter Casing ❑ Pull Tubing ❑ Stimulate - Frac ❑ Waiver ❑ Time Extension ❑ Change Approved Program ❑ Operat. Shutdown ❑ Stimulate - Other ❑ Re -enter Suspended Well ❑ 2. Operator 4. Well Class Before Work: 5. Permit to Drill Number: Name: Hilcorp Alaska, LLC Development is • Exploratory ❑ 206 -029 ' 3. Address: 3800 Centerpoint Drive, Suite 100 Stratigraphic ❑ Service ❑ 6. API Number: Anchorage, Alaska 99503 50- 133 - 20558 -00 ' 7. Property Designation (Lease Number): 8. Well Name and Number: FEDA- 028142 • Kenai Unit 21 -7X • 9. Logs (List logs and submit electronic and printed data per 20AAC25.071): 10. Field /Pool(s): N/A Kenai Gas Field Sterling Undefined Gas . 11. Present Well Condition Summary: Total Depth measured 5,032' feet . Plugs measured 3,700' feet true vertical 4,885' feet Junk measured 3,459' (Fill) feet Effective Depth measured 3,459' feet Packer measured N/A feet true vertical 3,367' feet true vertical N/A feet Casing Length Size MD TVD Burst Collapse Structural Conductor 126' 13 -3/8" 1236' 126' 3,450psi 1,950psi Surface 1,525' 9 -5/8" 1,525' 1,525' 5,750psi 3,090psi Intermediate Production 5,032' 5 -1/2" 5,032' 4,885' 5,320psi 4,910psi Liner Perforation depth Measured depth See Attached Schematic SCANNED JUN 2 0 ZO13 True Vertical depth See Attached Schematic Tubing (size, grade, measured and true vertical depth) N/A N/A N/A N/A Packers and SSSV (type, measured and true vertical depth) N/A N/A N/A N/A 12. Stimulation or cement squeeze summary: N/A Intervals treated (measured): N/A Treatment descriptions including volumes used and final pressure: N/A 13. Representative Daily Average Production or Injection Data Oil -Bbl Gas -Mcf Water -Bbl Casing Pressure Tubing Pressure Prior to well operation: 0 0 0 0 30 Subsequent to operation: 0 3500 400 0 1080 14. Attachments: 15. Well Class after work: Copies of Logs and Surveys Run N/A Exploratory Development I© • Service ❑ Stratigraphic ❑ Daily Report of Well Operations X 16. Well Status after work: Oil ❑ Gas • WDSPL ❑ GSTOR ❑ WINJ ❑ WAG ❑ GINJ ❑ SUSP ❑ SPLUG ❑ 17. I hereby certify that the foregoing is true and correct to the best of my knowledge. Sundry Number or N/A if C.O. Exempt: 313 -244 Contact Jeremy Mardambek Email imardambek(a�hilcorp.com Printed Name Jeremy Mardambek Title Reservoir Engineer Signature , r' Phone 907 - 777 -8388 Date 6/13/2013 / Q "� J RBDMS 10 -404 Revised 10/2012 / �U 1 RBDMS JUN 14 j01 Submit Original Only • Kenai Gas Field • Well: KU 21-07X SCHEMATIC Last Completed: 9/1/2006 Hilcorp Alaska, LLC PTD: 206 -029 CASING DETAIL RKB: MSL =87' 121 AGL Size Type Wt/ Grade/ Conn ID Top Btm 13-3/8' Conductor 68 / K -55 12.415 Surf 126' 9-5/8" Surface 40 / L -80 8.679 Surf 1,525' 5-1/2" Intermediate 17 /J -55 / IBT 4.892 Surf 5,022' r `r 13 -3/8 JEWELRY DETAIL at : v No Depth Item 1 3,394' Cement Stage Collar r a 2 3,700' CIBP $ 4 % PERFORATION DETAIL le t Top Btm To Btm 9 - 5/8" 4 I Zone FT Date Status (MD) (MD) (TVD) (TVD) Undefined 3,479' 3,487' 3,385' 3,393' 8' 6/7/2013 Open 3 Sterling 3,723' 3,740' 3,613' 3,630' 17' 9/1/2006 Isolated Sterling 3,756' 3,766' 3,645' 3,654' 10' 9/1/2006 Isolated pool 3,820' 3,836' 3,705' 3,720' 16' 8/14/2008 Isolated OPEN HOLE / CEMENT DETAIL 12 -1/4" hole w/ Type 1 cmt. Top Job= 400sks (92bbls), 15ppg, 1 bbl of cement to surface. Bottom Job= 9-5/8" 340sks (150.35 bbls), 12 ppg 8-1/2" 8 - 1/2" hole w/ Class G cmt. 250sks(82 bbls), 12.7 ppg- trace to surface. Bottom Plug= 260sks (10) bbls), 13.5 CafaX 1 4-<-_-__-, 1: Ji T @ 3,459' PUt Tagged 6/10/2013 d l Und ned TOC 3,656' 1{' t . Sterling Gas Tagged 6/7 /2013 u,c °'-1.-- - d 2 // TOF tagged @ • NOTE: r 3,921' wlv1 3/21/13 Kink in casing @3,750'- 3,775' KB. 3.80 GR will pass, but not a 16' 3- = 3/8" gun. 5 -1/2" . 31 ' TD = 5,032' PBTD =4,939' Revised By: TDF 6/11/2013 l • • Hilcorp Alaska LLC Weekly Operations Summary Well Name API Number Well Permit Number Start Date End Date KU 21 -7X 50- 133 - 20558 -00 206 -029 6/5/13 6/7/13 a i t r{ T . _ 4 uNNN�NN p b :argAtl III110111�I Dail o I� y �ku ;., dp,lii v o ��r &6 � i , �o� �I� iu, .— �ohUmh��wr� � h�e�_ ��N°�+. _ asr���_ ��, -P,� �� re �< -mot• 6/5 /2013 - Wednesday Mobe to location and spot equipment. Rig up lubricator. Pressure test lubricator to 250 psi low/ 2,500 psi high. Tubing had 60 psi on it. RIH w/4.75" gauge ring /junk basket and GR tool, as a dummy run for the plug, down to 3723'. Log from 3,723' to 500'. Determined had wrong tie in log. Called town andgot straigthen out. Fluid level was 3,350'. RIH with 4.24" (running OD) CIBP and tie into DIGITAL PERF CORRELATION LOG sent by Jeremy by e-mail, and_set plug at 3,700'. Picked up and went bacl and tagged plug. POOH. Made 3 -3 "x40' bailer runs that used 12 gal of 15.5 ppg putting 12' per run on top of plug (3,700' to 3,644' cement depth. Rig down lubricator, secure well and clean up work area. 6/6/2013 - Thursday Field hands set up choke skid and ran hard lines for perf job. BJ brought N2 pump truck and rigged up due to DOT time running out on Pump Truck driver. I sent them back home while we pressure well up with field gas. Jim Regg with AOGCC waived witness to the PT and tag. Pressured well up to 695psi of field gas. Well pressured up faster than I thought it would. Waiting til daylight and got BJ here to pump N2. BJ rigging up N2 lines. 6/7/2013 - Friday Baker Hughes pressured tubing up from 690 psi to 1,500 psi with N2 (60,000 SCF N2 total). Charted 30 min pressure test on plug at 3,700'. Rig lines off well and cleaned up work area. ; Rig up Pollard E -line lubricator, pressure tested 250 psi low and 2,500psi high. RIH with3- 3/8 "x8' HC, 6 spf, 60 deg phase and tied into Digital Perf Correlation Log(KU 21 -7X 501332055800). Tagged TOC at 3,656'. Spot perf gun from 3,479' to 3,487'. Bled tubing pressure from 1,450psi to 1,090psi. Fired gun and pressure went to 1,250psi in less than 5 min. POOH. All shots fired. TP 1,250psi. Rig down lubricator and turn well over to production. 6/8/2}}13 - Saturday No operations to report. 6/9/2013 - Sunday No operations to report. 6/10/2013 - Monday s � RU slickline. Presure test lubricator to 250psi low/ 1,500psi high. RIH w/ guage ring and tag fill @ 3,459'. POOH. RD. 6/11/2013 - Tuesday No operations to report. • • Schwartz, Guy L (DOA) From: Schwartz, Guy L (DOA) Sent: Monday, June 03, 2013 8:49 AM To: 'Jeremy Mardambek' Cc: 'Davies, Stephen F (DOA) (steve.davies @alaska.gov)' Subject: RE: KU 21 -7X (PTD 206 -029) Jeremy, The sundry will likely get approved today ... needs Commissioner signature still. What is your time line for doing the wellwork? Guy Schwartz Senior Petroleum Engineer AOGCC 907 -444 -3433 cell 907 -793 -1226 office From: Jeremy Mardambek [rnaitto:, mart amt }ek_d' hil o p.com] Sent: Monday, June 03, 2013 8:41 AM To: Schwartz, Guy L (DOA) Subject: RE: KU 21 -7X (PTD 206 -029) Guy, Were you going to send me that Sundry as soon as Steve Davies gave the ok on the perforation depths? Steve sent me a note on Friday afternoon but I am unsure if that is his ok. Thanks, Jeremy Mardambek Reservoir Engineer Hilcorp Alaska Office - (907) 777 -8388 Cell — (561) 512 -8690 From: Schwartz, Guy L (DOA) [ma 1 1 , : o : a u y . s c i w a r t r z : d:_z a. kac oy] Sent: Friday, May 31, 2013 10:59 AM To: Shane Bennett - (C); Jeremy Mardambek Cc: Davies, Stephen F (DOA); Roby, David S (DOA) Subject: RE: KU 21 -7X (PTD 206 -029) Jeremy, As per our conversation you may flow test the well temporarily without a packer /tubing to determine if the zones are productive. The sundry will detail the conditions of the flow period. I added a box for flow test in the sundry application. 36 Once all zones are tested a new sundry will be required for installing the new completion with packer /tubing /SVS etc. 1 Steve will OK the final perf intervals once he has a chance to review them. Looks like there are some perfs shallower than what was initially proposed. Guy Schwartz Senior Petroleum Engineer AOGCC 907 - 444 -3433 cell 907 - 793 -1226 office From: Schwartz, Guy L (DOA) Sent: Thursday, May 16, 2013 9:59 AM To: Shane Bennett - (C); Jeremy Mardambek (jrna rdar' bei< i hilcorp.c ,rn) Cc: 'Davies, Stephen F (DOA) (steve.davies aalaska..gov)'; 'Roby, David S (DOA) (dave_rot y aiaska,gov)' Subject: KU 21 -7X (PTD 206 -029) Shane /Jeremy: This well doesn't currently have a tubing string and packer as required for flow to surface wells. Have you considered that the lower zones you are abandoning may be able to stay on production if produced up smaller tubing? I don't have pressure info on these zones to make that call though. Nonetheless , if you pert the undefined Sterling and it is capable of flowing you will need to run a packer /tubing as per 20 AAC 25.200(d). The Commission will allow short term flow testing to determine commerciality of the new zones but within a short time a packer /tubing will be required. (ie 30 day flow test) Give me a call to discuss this when you can. Guy Schwartz Senior Petroleum Engineer AOGCC 907 - 444 -3433 cell 907 - 793 -1226 office 2 Ke ila( Ito Z(- k 20400 Zto Regg, James B (DOA) From: Billy Applewhite-(C) [bapplewhite @hilcorp.com] Sent: Friday, June 07, 2013 3:21 PM I \ef�1 6(i01 13 To: Regg, James B (DOA) 1 Cc: Tom Fouts; Billy Applewhite-(C); Keith Elliott; Chris Myers Subject: KU 21-07X PT on plug and Tag depth. Attachments: SKMBT_C20313060710320.pdf Mr. Regg, Here is the pressure chart off of BJ Hughes pump truck with attachment that shows date time and pressure.You should get another copy with the 404. Our tag depth (TOC) was 3656'. 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Conservation Coiranission GOVERNOR SEAN PARNELL 333 West Seventh Avenue ® ALAS R�� N 4i by ` `�� Anchorage, Alaska 99501 -3572 �' "EO ' Main: 907.279.1433 Fax: 907.276.7542 Jeremy Mardambek a O Reservoir Engineer Hilcorp Alaska, LLC 3800 Centerpoint Drive, Suite 100 Anchorage, AK 99503 Re: Kenai Gas Field, Sterling Undefined Gas Pool, Kenai Unit 21 -7X Sundry Number: 313 -244 Dear Mr. Mardambek: Enclosed is the approved Application for Sundry Approval relating to the above referenced well. Please note the conditions of approval set out in the enclosed form. As provided in AS 31.05.080, within 20 days after written notice of this decision, or such further time as the Commission grants for good cause shown, a person affected by it may file with the Commission an application for 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, Daniel T. Seamount, Jr. / Commissioner DATED this �j day of June, 2013. Encl. V ft-19D /4 • STATE OF ALASKA w 1 2 ` 'v1 "'' 1 .1. 2.C13 ALASKA OIL AND GAS CONSERVATION COMMISSION V APPLICATION FOR SUNDRY APPROVALS (31Ci ' 20 AAC 25.280 P ; y' -15 1. Type of Request: Abandon ❑ Plug for Redrill ❑ erforate New Pool .A -,L Repair Well ❑ Change Approved Program ❑ Suspend ❑ • Plug Perforations 511 ( L�3 • Perforate Sf 1 4Jull Tubing ❑ Time Extension ❑ Operations Shutdown ❑ Re -enter Susp. Well ❑ Stimulate ❑ Alter Casing ❑ pow ' 0 4—other. [ 2. Operator Name: 4. Current Well Class: 5. Permit to Drill Number: �ci Hilcorp Alaska, LLC Exploratory ❑ Development 0 f 206-029 • 3730/,' 3. Addres Stratigraphic ❑ Service 1.1 6. API Number. 3800 Centerpoint Drive, Anchorage AK, 99503 50 -133- 20558 -00 -00 , 7. If perforating: Z A Z� 6. Well Name and Number. What Regulation or Conservation Order governs well spacing in this pool? }el( A14,6 • Will planned perforations require a spacing exception? Yes ❑ No Kenai Unit 21 -7X ' 9. Property Designation (Lease Number): 10. Field /Pool(s): te. Je-,Led 4z-✓ FEDA- 028142 Kenai Gas Field / Sterling Fool -3-- -• l3 ‘-- /, f3 11. PRESENT WELL CONDITION SUMMARY �� Total Depth MD (ft): Total Depth TVD (ft): Effective Depth MD (ft): Effective Depth TVD (ft): Plugs (measured): Junk (measured): 5,032 4,885' 4,221' 4,085 N/A N/A Casing Length Size MD TVD Burst Collapse Structural Conductor 126' 13 -3/8" 126' 126' 3,450psi 1,950psi Surface 1,525' 9 -5/8" 1,525' 1,525` 5,750psi 3,090psi Intermediate — Production 5,032' r 5 -1/2" 5,032' 4,885' 5,320psi 4,910psi Liner 16666 Perforation Depth MD (ft): Perforation Depth TVD (ft): Tubing Size: Tubing Grade: Tubing MD (ft): See Attached Schematic See Attached Schematic N/A N/A N/A Packers and SSSV Type: Packers and SSSV MD (ft) and TVD (ft): N/A and N/A N/A and N/A 12. Attachments: Description Summary of Proposal 112 13. Well Class after proposed work: Detailed Operations Program ❑ BOP Sketch ❑ Exploratory ❑ Stratigraphic ❑ Development El Service ❑ 14. Estimated Date for 15. Well Status after proposed work: Commencing Operations: 3/21/2013 Oil ❑ Gas el • WDSPL ❑ Suspended ❑ G. Verbal Approval: Date: N/A WI ❑ GINJ ❑ WAG ❑ Abandoned ❑ Commission Representative: N/A GSTOR ❑ SPLUG Li 17. I hereby certify that the foregoing is true and correct to the best of my knowledge. Contact Shane Bennett I Email sbennett cahilcorp.com rented Name Jeremy Mardambek Title Reservoir Engineer r' Signature /� one 907 - 777 -8388 Date 5/14/2013 COMMISSION USE ONLY Date of appr•val: lotify Commission se that a representative may witness Sundry Number: / , - 2 Plug Integrity ❑ BOP Test ❑ Mechanical Integrity �n — 1 - 4 y Test ❑ Location Clearance ❑ / Other: 7 30 /1ti ��a cv a- S �/ , / -Y e.-r� - � — cA a.C— Levi / 7 , 6; // a Go.- ✓ -nice RBDMS JUN — 5 1; . pacing Exception Required? Yes ❑ No u Subsequent Form Required: /v — 1-R O y • APPROVED BY r.pproved by: ' / COMMISSIONER THE COMMISSION Dat Submit Form and i'N Form 10 -403 (Revised 10/2012) Appr � the date of oyal. RIIta � I 5 13,3 , '‘ • • Perforation Add Well: KU 21 -07X Hilcora Alaska, LL) Date: 5/14/2013 Well Name: KU 21 -07X API Number: 50- 133 - 20558 -00 -00 Current Status: Gas Producer Leg: N/A Estimated Start Date: 5/24/2013 Rig Eline Reg. Approval Req'd? 10 -403 Date Reg. Approval Rec'vd: Regulatory Contact: Tom Fouts 777 -8398 Permit to Drill Number: 206 -029 First Call Engineer: Shane Bennett (907) 777 -8425 (0) (325) 203 -7487 (M) Second Call Engineer: Jeremy Mardambek (907) 777 -8388 (0) (561) 512 -8690 (M) AFE Number: Current Bottom Hole Pressure: -140 psi SBHP from 2007 Maximum Expected BHP: -1,480 psi @ 3,420' TVD Calculated from 0.433 psi /ft gradient Max. Anticipated Surface Pressure: -1,370 psi Corrected from Max BHP Brief Well Summary KU 21 -07X was drilled in 2006 and was the last well drilled at Kenai Gas Field targeting the Sterling formation. It is a Pool 3 well with current perforations in the A10 and All sands. The well flowed at high rates briefly throughout 2007 but due to the 5.5" monobore completion it loaded up and died in 2008. In 2/2013 the well was reactivated briefly and flowed small volumes ( <500MSCFD) from Pool 3 indicating the well is loaded up due to the completion size. Based on open hole logs and new cased hole neutron logs, additional pay has been identfified in the well above Pool 3 in the undefined Sterling Gas Sands which could have original pressure. Justification: KU 21 -07X is a loaded up Pool 3 producer. The additional pay has been identified above the current active perforations. Recommendation: Temporarily abandon the A10 and All perforations and perforate higher in the well. These will likely be the highest perforations at the Kenai Gas Field as sands above Pool 3 were not tested by either former operator. Risks: Pressure is higher or lower than expected. Summary Procedure 1. RU Eline. 2. Use tie -in provided to set bridge plug bottom at ±3,715' MD. 3. Dump bail 25' of cement on plug P /. j 5-60, ps: � „•� % "``� 4. RIH with perforating guns and perforate the undefined Sterling Gas Sands from ±2,235' MD to ± 3,620' MD. Exact depths will be provided after the cased hole log has been analyzed and interpreted. 5. RDMO and turn well over to operations. �, e ,„ dola„fctP S -Z -13 Attachments: As -built and Proposed Well Schematic • • Kenai Gas Field Well: KU 21 -07X SCHEMATIC Last Completed: 9/1/2006 Ililcorp Alaska, Id,C PTD: 206 -029 CASING DETAIL RKB: MSL = 87' / 21 AGL Size Type Wt/ Grade/ Conn ID Top Btm 13 Conductor 68 / K - 55 12.415 Surf 126' 3 9 -5/8" Surface 40/L -80 8.679 Surf 1,525' j t' 5 -1/2" Intermediate 17 / J -55 / IBT 4.892 Surf 5,022' 4 13 -3/8 JEWELRY DETAIL h " , No Depth Item * i 1 3,394' Cement Stage Collar ysi 1 ! i PERFORATION DETAIL 4 Zone Top Btm Top (TVD) Btm (TVD) FT Date Status 9 - /8" 1 ij A (MD) (MD) 3,723' 3,740' 3,613' 3,630' 17' 9/1/2006 Open Sterling 3,756' 3,766' 3,645' 3,654' 10' 9/1/2006 Open pool 3 _; 3,820' 3,836' 3,705' 3,720' 16' 8/14/2008 Open R Id OPEN HOLE / CEMENT DETAIL Ii i " 12 -1/4" hole w/ Type 1 cmt. Top Job= 400sks (92bbls), 15ppg, 1 bbl of cement to surface. Bottom Job= 9-5/8" 3405ks (150.35 bbls), 12 ppg 8 - 1/2" hole w/ Class G cmt. 250sks(82 bbls), 12.7 ppg- trace to surface. Bottom Plug= 260sks (10) bbls), k 8 -1/2° 13.5 t IA e ( , a ' s A , r ' i Yt • 4 . N o P I t S t 'A NOTE: Ta tagged @ Kink in casing @3,750'- 3,775' KB. 3.80 GR will pass, but not a 16' 3- 4,221' MD- 8/25/O8 !° 3/8" gun. i ■ 51/2" t t :t.L: � t. TD x,03Z PBTD = 4,939' Revised By: TDF 3 -11 -2013 • . Kenai Gas Field • Well: KU 21 -07X PROPOSED Last Completed: 9/1/2006 Hilcoru Alaska, LLC PTD: 206 -029 CASING DETAIL RKB: MSL = 87' 1 21 AGL Size Type Wt/ Grade/ Conn ID Top Btm .: 13 -3/8' Conductor 68/K -55 12.415 Surf 126' I$: 9 -5/8" Surface 40 / L -80 8.679 Surf 1,525' 5 -1/2" Intermediate 17 / J 55 / IB7 4.892 Surf 5,022' t' i5 13 -3/8" 6. , 1 JEWELRY DETAIL 1 tie No Depth Item 1 Id 1 3,394' Cement Stage Collar 2 ±3,715' CIBP 4 PERFORATION DETAIL 9 e Zone Top Btm Top Btm FT Date Status (MD) (MD) (TVD) (TVD) Undefined _, Sterling ±2,235' ±3,620' ±2,232' ±3,516' ±1,385' Future Future -- rka Sterlin 3,723' 3,740' 3,613' 3,630' 17' 9/1/2006 C{pe ,` �„�'L y k g 3,756' 3,766' 3,645' 3,654' 10' 9/1/2006 O n ivjr`� pool3 As o lF4( 3 ,820' 3,836' 3,705' 3,720' 16' 8/14/2008 per) _ 0 J OPEN HOLE / CEMENT DETAIL Pi 9 -5/8 12 -1/4" hole w/ Type 1 cmt. Top Job= 400sks (92bbls), 15ppg, 1 bbl of cement to surface. Bottom Job= 0 340sks (150.35 bbls), 12 ppg 8-1/2" 8 - 1/2" hole w/ Class G cmt. 250sks(82 bbls), 12.7 ppg- trace to surface. Bottom Plug= 260sks (10) bbls), i rk .-.; 13.5 6 , . r 0 a r i, 51 av NE Undefined *t Sterling Gas 5 .. �'! l - Sand 1,I C y; trw v 3 t,2,01 TOC x,740' W ' 2 � I a .t. .. ;„ TOF tagged @ *1 NOTE: 3,921' WLM 3/21/13 .' Kink in casing @3,750'- 3,775' KB. 3.80 GR will pass, but not a 16' 3- 3/8" gun. Iva as �' $i 51/2 x t i r - . IL TD =5,032' PBTD = 4,939' Revised By: TDF 5/14/2013 • • Schwartz, Guy L (DOA) From: Schwartz, Guy L (DOA) Sent: Friday, May 31, 2013 10:59 AM To: Shane Bennett - (C); Jeremy Mardambek (jmardambek@hilcorp.com) Cc: 'Davies, Stephen F (DOA) (steve.davies @alaska.gov)'; 'Roby, David S (DOA) (dave.roby @alaska.gov)' Subject: RE: KU 21 -7X (PTD 206 -029) Jeremy, As per our conversation you may flow test the well temporarily without a packer /tubing to determine if the zones are productive. The sundry will detail the conditions of the flow period. I added a box for flow test in the sundry application. Once all zones are tested a new sundry will be required for installing the new completion with packer /tubing /SVS etc. Steve will OK the final perf intervals once he has a chance to review them. Looks like there are some perfs shallower than what was initially proposed. Guy Schwartz Senior Petroleum Engineer AOGCC 907- 444 -3433 cell 907- 793 -1226 office From: Schwartz, Guy L (DOA) Sent: Thursday, May 16, 2013 9:59 AM To: Shane Bennett - (C); Jeremy Mardambek (niar iamb k <z.hi!cor .c m) Cc: 'Davies, Stephen F (DOA) (steve.davies G alaska_gov)'; 'Roby, David S (DOA) (davc,r _aby alaska.gov)' Subject: KU 21 -7X (PTD 206 -029) Shane /Jeremy: This well doesn't currently have a tubing string and packer as required for flow to surface wells. Have you considered that the lower zones you are abandoning may be able to stay on production if produced up smaller tubing? I don't have pressure info on these zones to make that call though. Nonetheless, if you perf the undefined Sterling and it is capable of flowing you will need to run a packer /tubing as per 20 AAC 25.200(d). The Commission will allow short term flow testing to determine commerciality of the new zones but within a short time a packer /tubing will be required. (ie 30 day flow test) Give me a call to discuss this when you can. Guy Schwartz Senior Petroleum Engineer AOGCC 907 - 444 -3433 cell 907- 793 -1226 office 1 • • Davies, Stephen F (DOA) From: Davies, Stephen F (DOA) Sent: Friday, May 31, 2013 11:08 AM To: 'Jeremy Mardambek' Cc: Schwartz, Guy L (DOA) Subject: RE: KU 21 -7X (PTD 206 -029) Jeremy, Thank you. Please be aware that the requirements of 20 AAC 25.055 govern spacing in the Upper Sterling Undefined Gas Pool. Perforations in that pool in other Kenai Unit wells must conform to this statewide spacing regulation. Regards, Steve Davies Sr. Petroleum Geologist Alaska Oil and Gas Conservation Commission (AOGCC) Phone: 907- 7934224 Fax: 907 - 276 -7542 From: Jeremy Mardambek [ mailto:jmardambek(ahilcorp.com] Sent: Friday, May 31, 2013 10 :58 AM To: Davies, Stephen F (DOA) Cc: Schwartz, Guy L (DOA) Subject: RE: KU 21 -7X (PTD 206 -029) Steve, There are no producers perforated in the upper Sterling. Regards, Jeremy Mardambek Reservoir Engineer Hilcorp Alaska Office - (907) 777 -8388 Cell — (561) 512 -8690 From: Davies, Stephen F (DOA) [ mailto :steve.davies Sent: Friday, May 31, 2013 10:53 AM To: Jeremy Mardambek Cc: Schwartz, Guy L (DOA) Subject: RE: KU 21 -7X (PTD 206 -029) Jeremy, 1 • • Are there any other wells within the Kenai Unit that are perforated above the Sterling 3 Gas Pool? If so, which wells and how far away are they from the planned perforations in the KU 21 -7X well? Regards, Steve Davies Sr. Petroleum Geologist Alaska Oil and Gas Conservation Commission ( AOGCC) Phone: 907- 793 -1224 Fax: 907 - 276 -7542 From: Jeremy Mardambek [ mailto :jmardambek@ahilcorp.com] Sent: Thursday, May 30, 2013 4:07 PM To: Schwartz, Guy L (DOA); Shane Bennett - (C) Cc: Davies, Stephen F (DOA); Roby, David S (DOA) Subject: RE: KU 21 -7X (PTD 206 -029) Guy, I know you have been on vacation but let me know when you have some time to talk about this Upper Sterling test. Thanks, Jeremy Mardambek Reservoir Engineer Hilcorp Alaska Office - (907) 777 -8388 Cell — (561) 512 -8690 From: Schwartz, Guy L (DOA) [ mailto:guy.schwartz@alaska.gov] Sent: Thursday, May 16, 2013 9:59 AM To: Shane Bennett - (C); Jeremy Mardambek Cc: Davies, Stephen F (DOA); Roby, David S (DOA) Subject: KU 21 -7X (PTD 206 -029) Shane /Jeremy: This well doesn't currently have a tubing string and packer as required for flow to surface wells. Have you considered that the lower zones you are abandoning may be able to stay on production if produced up smaller tubing? I don't have pressure info on these zones to make that call though. Nonetheless , if you perf the undefined Sterling and it is capable of flowing you will need to run a packer /tubing as per 20 AAC 25.200(d). The Commission will allow short term flow testing to determine commerciality of the new zones but within a short time a packer /tubing will be required. (ie 30 day flow test) Give me a call to discuss this when you can. Guy Schwartz Senior Petroleum Engineer AOGCC 2 • • Schwartz, Guy L (DOA) From: Jeremy Mardambek <jmardambek @hilcorp.com> Sent: Tuesday, May 28, 2013 2:34 PM To: Schwartz, Guy L (DOA); Davies, Stephen F (DOA) Subject: Perforation Depths KU 21 -07X Steve and Guy, Exact perforations have been picked from the cased hole neutron log ran on 5 -2 -2013. See chart below with the depths in MD. The plan is to test each zone individually and if a zone tests gas then to leave it online. Please let me know when you approve the perforation adds. We will also be setting a plug above the current depleted Pool 3 perforations. Sterling Perforation Adds Top Bottom Expected Pressure Sand (MD) (MD) Length (ft) (psi) Un- named 1936 1963 27 838 v AO 2210 2244 34 957 AO 2302 2316 14 997 A2 2462 2496 34 1066 A6 3479 3487 8 1506 Regards. Jeremy Mardambek Reservoir Engineer Hilcorp Alaska Office - (907) 777 -8388 CeII — (561) 512 -8690 • • Schwartz, Guy L (DOA) From: Schwartz, Guy L (DOA) Sent: Thursday, May 16, 2013 9:59 AM To: Shane Bennett - (C); Jeremy Mardambek (jmardambek @hilcorp.com) Cc: 'Davies, Stephen F (DOA) (steve.davies @alaska.gov)'; 'Roby, David S (DOA) (dave.roby @alaska.gov)' Subject: KU 21 -7X (PTD 206 -029) Shane /Jeremy: This well doesn't currently have a tubing string and packer as required for flow to surface wells. Have you considered that the lower zones you are abandoning may be able to stay on production if produced up smaller tubing? I don't have pressure info on these zones to make that call though. Nonetheless , if you perf the undefined Sterling and it is capable of flowing you will need to run a packer /tubing as per 20 AAC 25.200(d). The Commission will allow short term flow testing to determine commerciality of the new zones but within a short time a packer /tubing will be required. (ie 30 day flow test) Give me a call to discuss this when you can. Guy Schwartz Senior Petroleum Engineer AOGCC 907 -444 -3433 cell 907 -793 -1226 office 1 w. . r . • • Davies, Stephen F (DOA) From: Jeremy Mardambek [jmardambek @hilcorp.com] Sent: Wednesday, May 15, 2013 4:14 PM To: Davies, Stephen F (DOA); Shane Bennett - (C) Cc: Keith Elliott; Chris Myers; Schwartz, Guy L (DOA) Subject: RE: Perforation Intervals in KU 21 -7X Steve, You are correct and we will continue to do this. Expect to see the depths of the actual perforations in an email before we perforate the well. Regards, Jeremy Mardambek Reservoir Engineer Hilcorp Alaska Office - (907) 777 -8388 Cell — (561) 512 -8690 From: Davies, Stephen F (DOA) [ mailto:steve.davies @alaska.gov] Sent: Wednesday, May 15, 2013 4:10 PM To: Jeremy Mardambek; Shane Bennett - (C) Cc: Keith Elliott; Chris Myers; Schwartz, Guy L (DOA) Subject: RE: Perforation Intervals in KU 21 -7X Jeremy, By allowing Hilcorp to submit broad intervals for potential perforations on Sundry Applications, my understanding was that Hilcorp would supply the actual footages to the AOGCC before perforating operations begin via email. Am I mistaken? I can't agree to waiting to see the actual footages until after the fact on 10 -404 forms. Thanks, Steve Davies Sr. Petroleum Geologist Alaska Oil and Gas Conservation Commission ( AOGCC) Phone: 907- 793 -1224 Fax: 907 -276 -7542 From: Jeremy Mardambek [mailto:jmardambek @hilcorp.com] Sent: Wednesday, May 15, 2013 1:27 PM To: Shane Bennett - (C); Davies, Stephen F (DOA) Cc: Keith Elliott; Chris Myers Subject: RE: Perforation Intervals in KU 21 -7X Steve, 1 • • The log was run on 5/2/2013 and we are currently waiting on the interpretation. Using this interpretation we will determine the actual footages but we would like to put the 10 -403 in the process first in order to perforate the well as soon have we have an interpretation. We will provide the actual footages on the 10 -404. Regards, Jeremy Mardambek Reservoir Engineer Hilcorp Alaska Office - (907) 777 -8388 Cell — (561) 512 -8690 From: Shane Bennett - (C) Sent: Wednesday, May 15, 2013 1:18 PM To: Davies, Stephen F (DOA) Cc: Jeremy Mardambek; Keith Elliott; Chris Myers Subject: Re: Perforation Intervals in KU 21 -7X I will get your answer this afternoon. Shane A. Bennett TPC RESOURCES, LLC (325) 325 -7487 On May 15, 2013, at 3:10 PM, "Davies, Stephen F (DOA)" <steve.daviesPalaska.gov> wrote: Shane, When does Hilcorp plan to run cased -hole logs in KU 21 -7X? When will Hilcorp provide the AOGCC with the actual footages to be perforated (not just rough intervals) based on those logs? Thanks, Steve Davies Sr. Petroleum Geologist Alaska Oil and Gas Conservation Commission (AOGCC) Phone: 907 - 793 -1224 Fax: 907 - 276 -7542 2 . • STATE OF ALASKA ALASKA OIL AND GAS CONSERVATION COMMISSION APPLICATION FOR SUNDRY APPROVALS Of % -y 20 AAC 25.280 1 1. Type of Request: Abandon ❑ Plug for Redrill ❑ Perforate New Pool ❑ Repair Well ❑ Change Approved Program ❑ Suspend ❑ Plug Perforations ❑ Perforate ❑ Pull Tubing ❑ Time Extension ❑ Operations Shutdown ❑ Re -enter Susp. Well ❑ Stimulate ❑ Alter Casing ❑ Other. Install Capstring 0 • [ 2. Operator Name: 4. Current Well Class: 5. Permit to Drill Number: Hilcorp Alaska, LLC Exploratory ❑ Development 0 206 -029 • 3. Address: Stratigraphic ❑ Service Ell 6. API Number: 3800 Centerpoint Drive, Anchorage AK, 99503 50- 133 - 20558 -00 -00 • 7. If perforating: 8. Well Name and Number. What Regulation or Conservation Order governs well spacing in this pool? N/A Will planned perforations require a spacing exception? Yes ❑ No 1511 Kenai Unit 21 - . 9. Property Designation (Lease Number): 10. Field /Pool(s): FEDA 028142 • Kenai Gas Field / Sterling Pool 3 11, PRESENT WELL CONDITION SUMMARY Total Depth MD (ft): Total Depth TVD (ft): Effective Depth MD (ft): Effective Depth TVD (ft): Plugs (measured): Junk (measured): 5,032 • — 4,885' • 4,221' 4,085 N/A _ N/A Casing Length Size MD TVD I Burst Collapse Structural r Conductor 126' 13 -3/8" 126' 126' / 3,450psi 1,950psi � � Surface 1,525' 9 -5/8" 1,525' 1,525' 5,750psi 3,090psi Intermediate _ - Production 5,032' 5 -1/2" 5,032' 14,885' 5,320psi 4,910psi Liner "o Perforation Depth MD (ft): Perforation Depth TVD (ft): Tubing Size: ub g Grade: Tubing MD (ft): See Attached Schematic See Attached Schematic A N/A N/A Packers and SSSV Type: . -rs - d SSSV D o ; and TVD (ft): N/A and N/A \ \ \ '1 N/A and N/A 12. Attachments: Description Summary of Proposal 0 lik ssift= p roposed work: • Detailed Operations Program ❑ BOP Sketch ❑ i o • , ' jIj Stratigraphic ❑ Development 0 Service ❑ 14. Estimated Date for 5. ' ell - after proposed work: Commencing Operations: 3/21/2013 Ori R Gas Q WDSPL ❑ Suspended ❑ 16. Verbal Approval: Date: N/A N WI \j ❑ GINJ ❑ WAG ❑ Abandoned ❑ Commission Representative: N/A i GSTOR ❑ SPLUG ❑ 17. I hereby certify that the foregoing is true and correct to i; •[ - - •f kn•wl e. Contact Shane Bennett ` \ V Email sbennettCa�hjlcorp.corn -rinted Name hane Ben Titl- Operat ns Engineer .Ar t Signature ,,re /f/r• 'hone 907 -77 -8425 Date 3/18/2013 COMMISSION USE ONLY t:onditions of approval: Notify Commission st a representative may witness Sundry Number: 313 -1 LI � Plug Integrity ❑ BOP Test Mechanical Integrity Test ❑ Location Clearance ❑ l C,'he 2U 13 NEt) APR • RSDMS APR 0 9 211 Spacing Exception Required? Yes ❑ No ❑ Subsequent Form Required: i APPROVED BY 'Approved by: COMMISSIONER THE COMMISSION Date: ' t Submit Form and I/ GRt A 1 Approved application is valid for 12 months from the date of approv 3 •Z Attachments in Duplicate � ^P • • Install Capstring Well KU 21-07X Hilcorp Alaska, I.0 Date: 3/18/2013 Well Name: KU 21 -07X API Number: 50- 133 - 20558 -00 -00 Current Status: Leg: Estimated Start Date: March 18` 2013 Rig: N/A Reg. Approval Req'd? Date Reg. Approval Rec'vd: Regulatory Contact: Tom Fouts 777 -8398 Permit to Drill Number: 206 -029 First Call Engineer: Shane Bennett (907) 777 -8425 (0) (325) 203 -7487 (C) Second Call Engineer: Jeremy Mardambek (907) 777 -8388 (0) (561) 512 -8690 (C) AFE Number: Current Bottom Hole Pressure: -170 psi Calculated from SITP on 41x -07 Maximum Expected BHP: -170 psi @ 3700' TVD Pool 3 pressure Max. Anticipated Surface Pressure: -140 psi Corrected from Max BHP Brief Well Summary KU 21 -07X was drilled in 2006 as a Pool 3 only producer. It had been SI since 2008 but was reactivated on 2/25/2013 after it was SI in 2008. Currently the well is producing 0.3 MMSCFD at a FTP of 35 psi. On 3/9/2013 a fluid level was shot at a depth of 2143' which indicates a standing water column. The well also responds favorably to batch soap treatments but a continuous treatment will keep the water unloaded from the perforations continuously. Notes Regarding Wel!bore Condition KU- 21 -07X should be flowed with as little draw down as possible as it is completed in the Sterling Pool 3 • formation and makes lots of water. The challenge is to flow the well without excess solid production. The KU 21 -07X has a Surface Safety Valve on the horizontal portion of the tree. Brief Procedure: 1. Install WHA 2. Check Fluid Control Valve using hand pump. If required, set FCV (making sure it is the "new" model) Pressure such that the CICM surface line pressure equals BHP. 3. Install valve on the end of coil string. 4. P/U Dyna -coil injector with crane. 5. Lower Injector head carefully on to the pack -off (line up slot with the pack -off %" x 4" nipple.) 6. Attach hydraulic hoses to hydraulic rams and insert snubbing guides. Prepare to pressure test. 7. Wrap wellhead and pack -off with absorbents to catch drips. Clear wellhead. 8. Pressure hydraulic rams (top seal, %" nipple) on pack -off to 3,000psi. 9. Open Rattiguns all the way. Watch for pressure Teaks. 10. Open slips. Monitor weight indicator to ensure injector is holding weight. 11. Adjust hydraulic rams pressure to minimum level (100psi - 500psi.) 12. Open swab valve. Watch for leaks at pack -off. 13. Set Depth counter. 14. RIH at 100 fpm, to set depth of 4,000'. 15. Set slips. Set Rattiguns. Release pressure on upper hydraulic seal to protect operator. 16. Lift injector head off and away from well. 17. Pressure hydraulic rams (top seal) on pack -off to 2,500psi. Close needle valve and insert hydraulic plug. • • Install Capstring • Well: KU 21 -07X xacoro Alaska. Date: 3/18/2013 18. Pull tubing excess through injector, or split injector head to remove tubing if over 500' of excess coil. 19. Connect tubing to swagelock injection manifold (valve, guage, filter, guage, valve) to CICM line. 20. Lockout Swab, Upper Master, and Lower Master as per Capstring Lock -out Procedure. 21. Pump foamer into capstring until fluid packed (if not already full.) 22. Hook -up injection line to CICM. Start foamer at 1 gallon per day. 23. Replace well house. Be careful of the tubing "bend" as it goes back inside if it extends through the roof. 24. RDMO. Clean -up site. Attachments: 1. As -built Schematic Proposed Schematic • • Kenai Gas Field . Well: KU 21 -07X SCHEMATIC Last Completed: 9/1/2006 Hilcorp Alaska, LLC PTD: 206 -029 CASING DETAIL RKB: MSL = 87' 121 AGL Size Type Wt/ Grade/ Conn ID Top Btm )< 13 -3/8' Conductor 68 / K -55 12.415 Surf 126' 9 -5/8" Surface 40 / L -80 8.679 Surf 1,525' .3 r 5 -1/2" Intermediate 17 /1-55 / IBT 4.892 Surf 5,022' i 13 -3/8 ? JEWELRY DETAIL I a a �., No Depth Item 1 3,394' Cement Stage Collar td 6 1 ri, PERFORATION DETAIL Z one Top (TVD) Btm (TVD) FT Date Status 9-5/8, (MD) (MD) . € Sterling 3,723' 3,740' 3,613' 3,630' 17' 9/1/2006 Open 3,756' 3,766' 3,645' 3,654' 10' 9/1/2006 Open 14; pool3 3,820' 3,836' 3,705' 3,720' 16' 8/14/2008 Open i as . a 4 7., OPEN HOLE / CEMENT DETAIL i 12 -1/4" hole w/ Type 1 cmt. Top Job= 400sks (92bbls), 15ppg, 1 bbl of cement to surface. Bottom Job= 9-5/8" 340sks (150.35 bbls), 12 ppg +'` 8 -1/2" hole w/ Class G cmt. 250sks(82 bbls), 12.7 ppg- trace to surface. Bottom Plug= 260sks (10) bbls), 8 -1 /2" 13.5 IA i 1 L -, ;; I" t a t . t V S 4. fl'Y �� 1 j df 1 ,o,, !k 9— i t: a li NOTE: ToF tagged @ L2 x` Kink in casing @3,750'- 3,775' KB. 3.80 GR will pass, but not a 16' 3- 4,221' MD- 8/25/08 s' : 3/8" gun. u TD - 4,032 PBTD = 4,939' Revised By: TDF 3 -11 -2013 Kenai Gas Field .H • • Well: KU 21 -07X PROPOSED Last Completed: 9/1/2006 Ilileorp Alaska, LLC PTD: 206 -029 CASING DETAIL RIB: MSL = 87' / 21 AGL Size Type Wt/ Grade/ Conn ID Top Btm 13 -3/8' Conductor 68/K -55 12.415 Surf 126' 1 ` 9 -5/8" Surface 40 / L -80 8.679 Surf 1,525' i 4 5-1/2" Intermediate 17 /J-55 / IBT 4.892 Surf 5,022' +' 3 13 -3 /8 to $ JEWELRY DETAIL � No Depth Item ' r 1 3,394' Cement Stage Collar . ': I PERFORATION DETAIL Zone (Mp) (MD) Top (TVD) Btm (TVD) FT Date Status 9 -5/8" 3 C, 3,723' 3,740' 3,613' 3,630' 17' 9/1/2006 Open m Sterling 3,756' 3,766' 3,645' 3,654' 10' 9/1/2006 Open t." pool3 3,820' 3,836' 3,705' 3,720' 16' 8/14/2008 Open a t; OPEN HOLE / CEMENT DETAIL 12 -1/4" hole w/ Type 1 cmt. Top Job= 400sks (92bbls), 15ppg, 1 bbl of cement to surface. Bottom Job= ' 9 -5/8 340sks (150.35 bbls), 12 ppg 8 1/2" 8 - 1/2" hole w/ Class G cmt. 250sks(82 bbls), 12.7 ppg- trace to surface. Bottom Plug= 260sks (10) bbls), 13.5 A T7 t s U 1I s: , ' NOTE: Kink in casing @3,750'- 3,775' KB. 3.80 GR will pass, but not a 16' 3- :5- 3/8„ gun. TOF tagged @ ,.. 4,221' MD- 8/25/08 +° p Baker3 /8"Capstring ti Installed @±4,000' ■ 51/2 ,..„ii, i TD == =5,032' PBTD = 4,939' Revised By: TDF 3 -11 -2013 • Schwartz, Guy L (DOA) From: Schwartz, Guy L (DOA) Sent: Thursday, March 21, 2013 4:34 PM To: Shane Bennett - (C) Cc: 'Regg, James B (DOA) (jim.regg @alaska.gov)'; Chad Helgeson Subject: Kenai unit 21 -7X (PTD 206 -029) Cap string install Shane, Please put the capillary string install on hold for now. I started to review this sundry and looked up the well file. There is no packer or tubing in the well... by regulation gas wells have to have a packer and tubing installed since they are a flow to surface well. I will do some more research and get back to you on this. We will likely be down to see the Cloverleaf rig at SD -07 tomorrow sometime. Guy Schwartz Senior Petroleum Engineer AOGCC 907 -444 -3433 cell 907- 793 -1226 office 1 • • Schwartz, Guy L (DOA) From: Schwartz, Guy L (DOA) Sent: Thursday, April 04, 2013 2:27 PM To: 'Tom Fouts' Cc: Shane Bennett - (C); Keith Elliott; Chris Myers; Jeremy Mardambek; Chris Kanyer; 'Fisher, Y Y Samantha J (DOA)' Subject: RE: 10 -403 Withdraw) Request for HVA -03 PTD 203 -222 & KU 21 -07X PTD 206 -029 We will retract both of the these sundries at your request ... submit new sundries to reflect the changed scope of work for each well. HVA -03 sundry 313 -092 will be retracted. KU 21 -07X sundry 313 -141 will be retracted. Guy Schwartz Senior Petroleum Engineer AOGCC 907 - 444 -3433 cell 907 - 793 -1226 office From: Tom Fouts [ Sent: Thursday, April 04, 2013 1:44 PM To: Schwartz, Guy L (DOA) Cc: Shane Bennett - (C); Keith Elliott; Chris Myers; Jeremy Mardambek; Chris Kanyer Subject: 10 -403 Withdraw) Request for HVA -03 PTD 203 -222 & KU 21 -07X PTD 206 -029 Guy, We are requesting the cancelation for the sundries submitted for HVA -03 PTD 203 -222 & KU 21 -07X PTD 206 -029. There have been changes to the original sundry procedures that warrant a revised sundry submittal. Please feel free to contact me with any questions you may have. Thanks, tom Fouts 1 Ops /Reg Tech Hilcorp Alaska, LLC tfouts@hilcorp.com Direct: (907) 777 -8398 Mobile: (907) 351 -5749 1 ,~ . ~: ,~ "w" f ye ~'~ ~.~ ~, ~.~~. a ~ c i , ~, 4. .o. \' ~. ^+~ w ~~ ~~ ' _ ,, .. ~~ U _~, MICROFILMED 6/30/2010 DO NOT PLACE ANY NEW MATERIAL UNDER.THIS PAGE C:\temp\Temporary Internet Files\OLK9\Microftlm Marker.doc KU 21-7X:Addendum to work approved under 9w~ir~° ~' Page 1 of 1 • • Aubert, Winton G {DOA) ~ (~ -~ ©Z From: Walsh, Ken jkdwalsh@marathonoil.com) Sent: Wednesday, June 10, 200910:35 AM To: Aubert, Winton G (DOA} Cc: Skiba, Kevin J.; Ibele, Lyndon; Damr~yer, Michael D.; Mullin, Mickey; Ostroot, James G. Subject: KU 21-7X:Addendum to work approved under Sundry#308-411 Attachments: KU 21-7x Mill Restriction Procedure.doc tl~`inton, Please f~°,cl attache, ~ groce~~re ~~ ~~ill c+ut a t"~st~'lcti~~" ~ ~~;~ ~- i/~" ~ro~f~cfic~n casing in the i~ 2~-`'X gas v~°eFl; PTD ~-~~~. T~;}s ~~er is ecessar~= ~o l(€~v~~ l~lara~l~e~ to be able to con!it~ie ~:~tith fibs aP~rove Sr~~y #3Q~--~~ ~ ~~vorl~ to aanc~on the sterling Pool 3 ~rerforafie~l infieruals and recomy~lefie tc the Sterling Pool ~ reservoir. E~urit~;g fibs ir°nryitianlfst`ag~,es Hof pjery~f~es~; r~~±r}gam fFa~^e~sre^ao~on~~Ie-.,tlo*v~or~k. It ;,eras $~Cefiermr~in~e}ar°5t#ha^~tltryhe~y~rc~~dctiJr~a(o~ tsQ~it lv.A r~L# i~.~4 K~v~€il a,~. ti.~ C.{ i,`=J~i Ei..~~tsl [ ~l.+~st I.f ~v~t~iYi'Y i~sv~- ~~~:.tz~~li.V P~LJZ J ~ tt~i V G.l. s.? ~,~.t}a `a~.~! "Y S1i i~l~. ~"he restriction is se~~ere eno€~gh +hat the casing Matches pro~osect to Isolate the Pool ~ ~erts c~u1~ not bass. ~n ~,~r~successful attempt v~~as n~ae to s~~ege the casing l~acl~ oast ~,vith sli::l~line tools, l~~aratho=-~ reg~ests your g~iclance cn l~o~~f to handle the approval and reporting to fibs ~,Q~.~.~GC of the ~ro~ose ~~=ork to gill fibs fi"sght safi in the casing. Best l~egar~s. ~~ Ken 1?, !1~/atsh Senior Proctu~tic~rt ngi~~eer Marato€~ Gii Campara-A3aska Asset Team 907-283-1311 ~caffice) 907-394-3o6fl {cell «KU 21-7x Mill Restriction Procedure.doc» 6/ 10/2009 • ~:; • MARATHON OIL COMPANY ALASKA REGION KU 21-7X Addendum to Patching/ Re-complete Procedure Mill-out Procedure (6/04/2009) WBS # W0.08.19207.EXP Notes• • This procedure covers work to mill out restrictions in the 5-1/2", 17 ppf production casing at 3745' MD. The restrictions will be milled and dressed properly to allow continuation of work to set Owen casing patches across the open Sterling Poo13 perforations. The final goal of this work is to recomplete this well to a Sterling Poo16 gas producer. • After mill-out, continue RIH to clean out to PBTD 4939' MD. After pulling out of the hole, rig back coiled tubing and proceed to Step #6 (Set Casing Patches Across All Three Poo13 Open Perforation Intervals) in the document dated November 11, 2008, KU 21- 7X Procedure to Abandon Poo13 Perfs and Recomplete to Pool 6. • Well is currently dead and shut-in. Procedure• MIRU 1-3/4" CT 1. MIRU MOC flow-back equipment. Including open-top flow-back tank, choke skid, gas buster, and flow back iron. MIRU S00 bbls. Rain-for-Rent fluid supply tank. Lay liner and berm area around tank and wellhead. Load supply tank with 6%KCL. Deliver diesel-fuel man- lift and two light towers. Remove well house. 2. MIRU BJ 13/" coil tubing and nitrogen units. Conduct pre-job safety meeting and obtain Safe Work Permit. Spot CTU with 13/4" CT work reel, and pumping equipment. Nipple up and test CT BOP's and flowback iron to 250/4500 psi with b% KCL water. Stab CT work string in injector. ;~ 3. Make ua Weatherford tool stringy. Install Weatherford 1-3l4" External coil tubing connector. Pull test CT connection to 20K. MU BHA BHA to include 1-314" External CT connector, 2- 7/8" DFCV, 2-7/8" Hydraulic Disconnect, 2-718" Circ sub, 3-1/8" Hydraulic Jars, 2-7/8" PDM KU 21-7X Mill-out Addendum Ken Walsh - 6/10/2009 10:50:36 AM Page 2 of 2 High Performance Moyno CTD, and 2.75"x 4.75" Bald Nose Diamond Crayola Milt. Strap and record BHA measurements. 4. Nipple up infector to WHA, Pressure test the Bowens connection to 1200 psi.. Listen for motor turning while filling the lubricator for PT. 5. RIH w/ BHA. RIH pumping 6% KCL at minimum rate. Increase fluid rate to 1-3/4 to 2 BPM @ 3500'. Maximum pump rate for 2-7/8" High Performance Motor is 2.5 BPM. Gently "feather" bit down hole. Make a foot. PU and repeat. Tight spots are 3730' to 3760'. Once thru tight spot "back ream" gently up thru tight area. After working through the area several times, shut down motor and check to see if BHA will still. pass through tight area. Continue RIH to clean out to 4939'- PBTD. Circulate bottoms up twice. POOH. 6. Purge KCL water from CT remaining on reel trailer with nitrogen. If necessary to prevent freeze up or in order to move coil unit out of the way. Will need CTU/N2 to jet well in later. Allow N2 to vent to flowback tank. 7. Proceed to Step #6 in a Separate Document entitled KU 21-7X Procedure to Abandon Pool 3 Perfs and Recomplete to Poo16. Step #6 is to Set Casing Patches Across All Three Poo13 Onen Perforation Intervals. CONTACTS Ken Walsh : 9071283-1311 (w) 907/394-3060 (cell) Michael Dammeyer: 907/283-1333 (w) 907!394-8270 (cell) Lyndon Ibele: 907/565-3042 (w) 9071748-2819 (cell) EMERGENCY CONTACTS: KGF Operators: 907/567-3248 Emergency Dial 911 KGF Operators: 907/283-1305 KU 21-7X Mill-out Addendum Ken Walsh - 6/10/2009 10:50:36 AM r: c~~~~f[~ Ole G~i~ ~!a~il~.~~~ ALASSA OIL A1QD GA.S COI~TSERQAZ'IO1~T COI•Il-i155IO1Q Ken Walsh Senior Production Engineer Marathon Oil Company ~~9~~ #~ ~ ~, ~ 200E ~~ SARAH PALIN, GOVERNOR 333 W. 7th AVENUE, SUITE 100 ANCHORAGE, ALASKA 99501-3539 PHONE (907) 279-1433 FAX (907) 276-7542 PO Box 1949 Kenai AK 99611-1949 ~ / Q ~J Re: Kenai Gas Field, Sterling Poo13, Kenai Unit 21-7x Sundry Number: 308-411 Dear Mr. Walsh: Enclosed is the approved Application for Sundry Approval relating to the above referenced well. Please note the conditions of approval set out in the enclosed form. When providing notice for a representative of the Commission to witness any required test, contact the Commission's petroleum field inspector at (907) 659-3607 (pager). As provided in AS 31.05.080, within 20 days after written notice of this decision, or such further time as the Commission grants for good cause shown, a person affected by it may file with the Commission an application for rehearing. A request for rehearing is considered timely if it is received by 4:30 PM on the 23rd day following the date of this letter, or the next working day if the 23rd day falls on a holiday or weekend. A person may not appeal a Commission decision to Superior Court unless rehearing has been requested. Sincerely, Cathy . Foerster Commissioner DATED this day of November, 2008 Encl. • M Marathon MARATHON Oit Company November 11, 2008 Mr. Tom Maunder Alaska Oil & Gas Conservation Commission 333 W 7t" Ave Anchorage, Alaska 99501 • Marathon Oil Company Alaska Asset Team P.O. Box 1949 Kenai, AK 99611 Telephone 9071283-1371 Fax 9071283-1350 Reference: 10-403 Application for Sundry Approvals Field: Kenai Gas Field Well: Kenai Unit 21-7x Dear Mr. Maunder: Marathon requests permission to plug off the KU 21-7x well Sterling Pool-3 perforations and recomplete it into Sterling Pool-6. The Sterling Pool-3 zone has proven to be uneconomical to produce. Recompleting KU 21-7x into the Sterling Pool-6 sands will provide Marathon with another take point for utilizing the Sterling production/storage pool. Please contact me at (907) 283-1371 if you have any questions or need additional information. Sincerely, ~/ ..~ Kevin J. Skiba Engineering Technician Enclosures: 10-403 Application for Sundry Approvals Work Procedure Well Schematic Proposed Well Schematic cc: AOGCC Houston Well File Kenai Well File KJS KDW n,~. STATE OF ALASKA ~I~~ ALA OIL AND GAS CONSERVATION COM~ION/~i 1V ~ ~. APPLICATION FOR SUNDRY APPROVALS ~n Aac ~s ~An 1. Type of Request: Abandon^ Suspend ^ Operational shutdown^ Perforate Waiver^ Alter casing ^ Repair well ^ Plug Perforations ^~ ~ Stimulate ^ Time Extension ^ Change approved program ^ Pull Tubing ^ Perforate New Pool Q ~ Re-enter Suspended Well ^ 2. Operator Name: Marathon Oil Company 4. Current Well Class: 5. Permit to Drill Number: Development ^ , Exploratory ^ 206-029 3. Address: p0 BOx 1949 Stratigraphic ^ Service ^ 6. API Number: Kenai Alaska, 99611-1949 50-133-20558-00-00 7. If perforating, closest approach in pool(s) opened by this operation to nearest 8. Well Name and Number: property line where ownership or landownership changes: Spacing Exception Required? Yes ^ No ^~ Kenai Unit 21-7X 9. Property Designation: 10. KB Elevation (ft): 11. Field/Pool(s): A- 028142 ~ 8T ~(21' AGL) Kenai Gas Field /Sterling Pool 3 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): 5,032' ~ 4,845' ~ 4,939' 4,792' ~ NA NA Casing Length Size MD TVD Burst Collapse Structural Conductor 105' 13-3/8" 126' 126' 3,450 psi 1,950 psi Surface 1,504' 9-5/8" 1,525' 1,525' 5,750 psi 3,090 psi Intermediate Production 5,001' 5-1 /2" 5,022' 4,875' 5,320 psi 4,910 psi Liner Perforation Depth MD (ft): Perforation Depth TVD (ft): Tubing Size: Tubing Grade: Tubing MD (ft): 3,723' - 3,836' 3,613' - 3,720' NA NA NA Packers and SSSV Type: Packers and SSSV MD (ft): NA NA 13. Attachments: Description Summary of Proposal ^ 14. Well Class after proposed work: Detailed Operations Program 0 BOP Sketch ^ Exploratory ^ Development ^~ ~ Service ^ 15. Estimated Date for 16. Well Status after proposed work: .,~ ~ r~_ _ (`_ C I_ ~~lyv~ ~ ~ ~ J ~" l Commencing Operations: November 24, 2008 Oil ^ Gas ^~ .~~ Plugged ^ Aband oned ^ 17. Verbal Approval: Date: WAG ^ GINJ ^ WINJ ^ WDSPL ^ Commission Representative: 18. I hereby certify that the foregoing is true and correct to the best of my knowledge. Contact Kevin Skiba (907) 283-1371 Printed Name Ken D. Walsh Title Senior Production Engineer Signature ~ (~, II ~ ~~ry ~ hone (907) 283-1311 Date November 12, 2008 COMMISSION USE ONLY Conditions of approval; Notify Commission so that a representative may witness Sundry Number: ~ i ~l Plug Integrity ^ .BOP Test ~ Mechanical Integrity Test ^ Location Clearance ^ other: ~~~ pS t ~~ ~o~ ~~ : ~~~'~ Zcs.S1 ~ rCSSv~~ '~-C ~~ G~~Q~~.h~ \ P Subsequent Form Required: 1~`~ APPROVED BY Approved by: ~%~~~;~~~ COMMISSIONER THE COMMISSION Date: /~_~ -08 ~~~ J, ~ ~l ~p N Othe ~L Form 10-403 Revised 06/2006'`- s ~~ ' ~ ~ ~ ~-~ ~ ~ ~' tai' ~ ~ ~~ ZdO~ Submit in Duplicate 50-133-20558-00-00 Des: A-028142 :vation: 87' (21' AGL) ie: 60° 27' 38.787" N :ude: 151 ° 15' 42.359" W 272,250.76 2,362,523.31 3/15/2006 3/22/2006 Teased: 12:OOhrs 2/29/2006 Surface Casino 9-5/8" L-80 40 ppf T~ Bottom MD 0' 1,525' TVD 0' 1,525' 12-1/4" hole cmt with Type 1: Top job = 400 sks (92 bbls), 15 ppg, 1 bbl of cmt to surface Bottom job = 340 sks (150.35 bbl), 12.0 ppg KU 21-7x Kenai Gas Field Pad 14-6 484' FSL, 1,330' FWL, Sec. 6, T4N, R11W, S.M. M MAw-nroN ~~ "' Conductor `' 13-3/8" K-55 68 ppf Tom Bottom - MD Surf 126' TVD Surf' 126' Cement Stage Collar @ 3,394' RKB Sterling Pool-3 Perfs: MD Ft TVD Gun Tvae Date A-10 3,723'-3,740' 17' 3,613'-3630' 3-3/8" (9/1/06) A-10 3,756'-3,766' 10' 3,645'-3,654' 3-3/8" (9/1/O6) A-11 3,820'-3,836' 16' 3,705'-3,720' 2-3/8" (8/14/08) 5-1 /2" J-55 17 ppf IBT Tom Bottom MD 0' 5,022' TVD 0' 4,875' 8-1/2" hole cmt with Class G: Top plug = 250 sks (82 bbls), 12.7 ppg, trace to surface Bottom plug = 260 sks (101 bbls), 13.5 ppg ~ ~ ~ f~ ~ ~Q- ~ , ~ ~ ~~ c Fill Tagged @ 4,221' MD (8/25/08) TD PBTD 5,032' MD 4,939' MD 4,845' TVD 4,792' ND Well Name 8 Number: Kenai Unit 21-7x Lease: Kenai Gas Field A-028142 Perforations: (MD) 3,723' - 3,836' (TVD): 3,613' - 3,720' Angle @KOP and Depth: 4.5° @ 1,875' MD Angle/Perfs: Vertical Date Completed: 09/01/06 Ground Level: 65' above MSL RKB: 21' Revised by: Kevin Skiba Last Revision Date: 09/23/08 API #: 50-133-20558-00-00 Prop. Des: A-028142 KB elevation: 87' (21' AGL) Latitude: 60° 27' 38.787" N Lonctitude: 151 ° 15' 42.359" W X: 272,250.76 Y: 2,362,523.31 Spud: 3/15/2006 TD: 3/22/2006 Rig Released: 12:OOhrs 2/29/2006 PA #: KU 21-7x Proposed Kenai Gas Field Pad 14-6 484' FSL, 1,330' FWL, Sec. 6, T4N, R11 W, S.M. M MARATHON "~ •' Conductor ' ~ 13-3/8" K-55 68 ppf ; * Tom Bottom - MD Surf 126' TVD Surf 126' Surface Casing 9-5/8" L-80 40 ppf T~ Bottom MD 0' 1,525' TVD 0' 1,525' 12-1/4" hole cmt with Type 1: Top job = 400 sks (92 bbls), 15 ppg, 1 bbl of cmt to surface Bottom job = 340 sks (150.35 bbl), 12.0 ppg TD 5,032' MD 4,845' TVD Production Casing 5-1/2" J-55 17 ppf IBT Tom Bottom MD 0' 5,022' TVD 0' 4,875' 8-1/2" hole cmt with Class G: Top plug = 250 sks (82 bbls), 12.7 ppg, trace to surface Bottom plug = 260 sks (101 bbls), 13.5 ppg PROPOSED Sterling Pool-6 Perfs MD Ft TVD C-1 4592' - 4598' 6' 4447'-4453' C-1 4606' - 4622' 16' 4461'-4477' C-1 4626' - 4634' 8' 4481'-4489 C-1 4638' - 4646' 8' 4493'-4500' C-1 4657' - 4672' 15' 4511'-4526' C-1 4676' - 4683' 7' 4530'-4537' C-1 4686' - 4696' 10' 4540'-4550' C-1 4704' - 4710' 6' 4558'-4564' C-2 4731' - 4749' 18' 4585'-4603' C-2 4757' - 4797' 40' 4611'-4651' PBTD 4,939' MD 4,792' TVD Well Name & Number: Kenai Unit 21-7x Lease: Kenai Gas Field A-028142 Perforations: (MD) 3,723' - 3,836' (TVD): 3,613' - 3,720' Angle @KOP and Depth: 4.5° @ 1,875' MD Angle/Perfs: Vertical Date Completed: 09/01/06 Ground Level: 65' above MSL RKB: 21' Revised by: Ken Walsh Last Revision Date: 11/07/08 Cement Stage Collar @ 3,394' RKB MD Ft TVD Gun Tvoe Date 0 3,723'-3,740' 17' 3,613'-3630' 3-3/8" (9/1/06) 0 3,756'-3,766' 10' 3,645'-3,654' 3-3/8" (9/1/06) 1 3,820'-3,836' 16' 3,705'-3,720' 2-3/8" (8114/08) zswzsw • • M MARATHON November 11, 2008 Marathon Oil Company Alaska Asset Team KU 21-7X Procedure to: Abandon Pool 3 Perfs and Recomplete to Poo16 WBS # Requested Objective: Permanently abandon uneconomic Sterling Poo13 A-10 and A-11 perforation intervals with Owen casing patches before recompleting to the Poo16 interval. Current status: Well is currently dead with no shut-in surface pressure. Procedure• 1. Haul Tanks and Rental Eauipment to Location. Make arrangements with ASRC to lay liner and berm around flowback equipment. Deliver diesel fueled man-lift, two light towers, and MOFO to location._Deliver MOC flowback tank, gas buster, and 2" SK choke skid to location. Deliver clean Rain-for-Rent fluid tank and fill with 500 bbls of 6% KCL water. Deliver 50/50 methanol water tank to location. Make arrangements for electrician and crane truck to remove well house. 2. Run GR. MIIZU Expro Wireline to run inflatable bridge plug. Hold PJSM. MU a 3.80" GR and pull into the lubricator. Take lubricator to wellhead and pressure test to 300 psi with 50/50 methanol water. RIH with 3.80" GR to tag fill (last tag was 4221'MD with P-T tool on 8/24/2008 and at 4264' MD with 3.80" GR on 8/13/2008). POOH and LD GR. 3. Set Inflatable Bridge Plug to Change out Tree. PU 2.50" max running OD Weatherford/BOT inflatable bridge plug, setting tool, and reservoir tool and pull into lubricator. Take lubricator to wellhead and pressure test to 200 psi with 50/50 methanol water. RIH and set inflatable bridge plug at ±500' MD. Tag inflatable bridge plug to verify setting depth if service personnel allow. POOH and LD setting and reservoir tools. RDMO Expro Wireline. Pump 5.0 bbls 6%KCL water (or 50/50 methanol water depending on ambient temperature) into casing to provide about 100 psi hydrostatic pressure. The latest static pressure was recorded at 78.6 psia at 3746' MD. Bleed off any residual pressure. 4. Change out 4-1/16" for 7-1/16" Christmas Tree. MIRU Vetco crane truck and personnel to change out the 4-1/16" tree fora 7-1/16" tree. Hold PJSM. Set BPV in 4" BPV prep (3.90" ID) in completion bushing. Bleed off any residual pressure. KU 21-7X Abandon Poo13 and Recomplete to Poo16 • • Remove 4-1/16" tree above the 7-1/16" Flow Tee and replace the recompletion bushing with a new recompletion bushing with a 5" H-BPV profile. Install a 7-1/16" SK x 3K spacer spool and two 7-1/16" 3K Cameron valves above the completion bushing. An Otis 7-1/16" 3K tree cap with 9-1/2" Acme threads has been ordered but will not be available for installation. The exact same type of tree cap will be "borrowed" from the KBU 23-X6 well until the new tree cap arrives. Have Vetco install a 2-way check and pressure test the tree to 3000 psi with 50/50 methanol water. Remove the 2-way check and RDMO Vetco. 5. Pull Inflatable Bridge Plug. MIRU Pollard Wireline to pull Weatherford inflatable bridge plug. Hold PJSM. MU a JDC pulling tool and bell guide to catch a 1" fishing neck on the inflatable BP, jars, and slickline tool string into the lubricator. Pressure test lubricator to 200 psi with 50/50 methanol water. RIH and latch up on inflatable BP. Set down to equalize and then pickup to shear release BP. Allow tool to relax and contract for about 60 minutes before attempting to POOH. POOH and LD fishing tools and inflatable BP. State condition of the inflatable BP in the We1lView report. 6. Set Casing Patches Across All Three Poo13 Open Perforation Intervals. MIRU Expro Wireline. Hold PJSM. MU 4.75" GR and pull into lubricator. Pressure test quick test sub to 200 psi. RIH with a 4.75" GR to 3950' MD. POOH and LD GR. a. Patch #1 across Perfs at 3818'-3834' CH (3820'-3836' OH). PU Owen Casing Patch #1 (4.70" running OD and 4.00" final minimum ID), setting tool and pull into lubricator. Pressure test quick test sub to 200 psi. RIH and correlate depth with CBL and OH logs. Set 21' patch from 3815'-3836' cased hole MD (3817'-3838' OH). b. Patch #2 across Perfs at 3754'-3764' CH (3756'-3766' OH). PU Owen Casing Patch #2 (4.70" running OD and 4.00" final minimum ID), setting tool and pull into lubricator. Pressure test quick test sub to 200 psi. RIH and correlate depth with CBL and OH logs. Set 16' patch from 3751'-3767' cased hole MD (3753'-3769' OH). c. Patch #3 across Perfs at 3721'-3738' CH (3723'-3740' OH). PU Owen Casing Patch #3 (4.70" running OD and 4.00" final minimum ID), setting tool and pull into lubricator. Pressure test quick test sub to 200 psi. RIH and correlate depth with CBL and OH logs. Set 26' patch from 3718'-3744' cased hole MD (3720'-3746' OH). RDMO Expro Wireline. 7. MIRU Coiled Tubing Unit. MIRU ASRC 40 or 45-ton Crane, BJ Services coiled tubing unit, nitrogen unit, and fluid pump. Hold PJSM. Install BJ 4-1/16" SK flow cross on 4-1/2" Otis connection on top of swab valve. RU MOC flow back iron to allow circulation of fluids from the flow cross, through the choke skid, to the gas buster and flow-back tank. Have ASRC crane PU CT BOP's and flange to flow cross.. Pressure test BOP's with 50/50 methanol water to 250 psi/4500 psi. Function KU 21-7X Abandon Poo13 and Recomplete to Poo16 • • test BOP accumulator. Submit required BOP Test Report to AOGCC. Displace methanol to tank with 6%KCL water. Stab coil tubing in injector assembly. Pickup the injector head and lubricator with crane. Install dimple-on connector and pull test to 15K. Install jetting nozzle without MHA (DFDC). MU injector head and lubricator on top of BOP's. Shell test to 1500 psi. Notify AOGCC James Regg (a~ 907-793-1236 (24 or longer) prior to CT BOP Test 8. Clean out Fill with Coiled Tubing. Open well and RIH pumping 6%KCL water at minimum rate to fill the well. Stop RIH when CT tail is at 4000' MD and continue pumping KCL water until full and clean returns are acquired at surface. RIH pumping KCL water at 2-2.5 BPM or as prescribed by the BJ Services recommendation. Clean out fill to PBTD depth of 4939' MD (last tag depth was 4,221' MD on 8/25/2008). Close pipe rams and pressure test casing to 1000 psi with KCL water. Bleed off pressure. PUH to place coiled tubing tail at 4000' MD. 9. Reverse Jet Well Dry with Nitrogen. Hold PJSM. Cool down nitrogen unit and pressure test lines and check valve to 250/4500 psi with KCL water. Bleed off pressure and displace water to flowback tank with nitrogen. Take initial fluid tank straps and calculate volume of fluid to recover to 4939' MD. Pump nitrogen down coiled tubing and 5-1/2" casing annulus to reverse jet all of the fluid from the hole to the flowback tank. Follow BJ Services reverse jetting procedure. When well is dry to 4000' MD, RIH to PBTD of 4939' and finish reverse jetting the well dry with nitrogen. POOH with coiled tubing. RDMO BJ Services Coiled Tubing Equipment. 10. Perforate Sterling Poo16 C1 and C2. Hold PJSM. MIRU Expro Wireline. Remove tree cap flange and install 7-1/16" 3K x 7-1/16" SK flange with Bowen connection to 5" lubricator. Pressure test lubricator to 250/300 psi with methanol water. Bleed off pressure to pressure tank or flow back tank. PU the first perforating gun and pull into lubricator. Pressure test quick test sub to 300 psi. Open well and RIH and perforate with 3-3/8" HSD guns loaded 6 SPF 60 degree-phased with SDP- 3125-311NT3 charges. Correlate Expro CBL/GR/CCL log depth to open hole logs. Perforate as follows observing any pressure fluctuations at surface: MD TVD Ft a. Pool 6 C2: 4757'-4797' 4611'-4651' 40 b. Pool 6 C2: 4731'-4749' 4585'-4603' 18 c. Poo16 C1: 4704'-4710' 4558'-4564' 6 d. Poo16 C1 4686'-4696 4540'-4550' 10 e. Poo16 C1 4676'-4683 4530'-4537' 7 f. Poo16 C1 4657'-4672 4511'-4526' 15 g. Poo16 C1 4638'-4646 4493'-4500' 8 h. Poo16 C1 4626'-4634 4481'-4489' 8 i. Poo16 C1 4606'-4622 4461'-4477' 16 j. Pool 6 C1 4592'-4598 4447'-4453' 6 KU 21-7X Abandon Poo13 and Recomplete to Poo16 i 1 ~ C 11. RDMO Expro Wireline. Clean up location. Haul off rental equipment, MOC equipment, and liner. Complete Well Handover Form and review with Production #1 Operator. 12. Produce well to sales. CONTACTS Ken Walsh: 907-283-1311 (w) Scott Szalkowski: 713-296-3390 (w) 907-394-3060 (c) Lyndon Ibele: 907-565-3042 (w) 907-748-2819 (c) KGF Operators: 907-283-1305 Sharad Yadev: 713- 301-9834 (c) 713-296-3689 (w) 512-731-3369 (c) KU 21-7X Abandon Poo13 and Recomplete to Poo16 r M Marathon MARATHON Oil Company September 23, 2008 `~~~ ,1~~ ~~ ~ ~ ?~0 Mr. Tom Maunder Alaska Oil & Gas Conservation Commission 333 W 7th Ave Anchorage, Alaska 99501 Reference: 10-404 Report of Sundry Well Operations Field: Kenai Gas Field Well: Kenai Unit 21-7x Dear Mr. Maunder: ~' ~~~;~ dab. o ~'°~ l~ Attached for your records is the 10-404 Report of Sundry Well Operations for KU 21-7x well. This sundry covers the 16 feet of perforations that were discharged into the Sterling Pool-3 zone under Sundry approval # 308-267. MD TVD 3,820' - 3,836' 3,705 '- 3,720' Please contact me at (907) 283 -1371 if you have any questions or need additional information. Sincerely, .,,r±iU7/~ Kevin J. Skiba Engineering Technician Enclosures: 10-404 Report of Sundry Well Operations Operations Summary Current Well Schematic • Marathon Oil Company Alaska Asset Team P.O. Box 1949 Kenai, AK 99611 Telephone 907/283-1371 Fax 907/283-1350 cc: Houston Well File Kenai Well File KJS .... STATE OF ALASKA ALA~OIL AND GAS CONSERVATION COMfv~ON REPORT OF SUNDRY WELL OPERATIONS ~~ 9J 1. Operations Abandon Repair Well Plug Perforations Stimulate Other Performed: Alter Casing ^ Pull Tubing ^ Perforate New Pool ^ Waiver^ Time Extension ^ Change Approved Program ^ Operat. Shutdown ^ Perforate ^~ ~ Re-enter Suspended Well ^ 2. Operator Marathon Oil Company N 4. Well Class Before Work: 5. Permit to Drill Number: ame: Development ^~ ~ Exploratory^ 206-029 , 3. Address: p0 Box 1949 Stratigraphic ^ Service ^ 6. API Number: Kenai Alaska, 99611-1949 50-133-20558-00-00 7. KB Elevation (ft): 9. Well Name and Number: 8T (21' AGL) - Kenai Unit 21-7x 8. Property Designation: ~ 10. Field/Pool(s): F~ A - 028142 Kenai Gas Field /Sterling Pool 3 11. Present Well Condition Summary: Total Depth measured 5,032' ~ feet Plugs (measured) NA true vertical 4,845'- feet Junk (measured) NA Effective Depth measured 4,939'- feet true vertical 4,792' ~ feet Casing Length Size MD TVD Burst Collapse Structural Conductor 105' 13-3/8" 126' 126' 3,450 psi 1,950 psi Surface 1,504' 9-5/8" 1,525' 1,525' 5,750 psi 3,090 psi Intermediate Production 5,001' 5-1/2" 5,022' 4,875' 5,320 psi 4,910 psi Liner Perforation depth: Measured depth: 3,723' - 3,836' True Vertical depth: 3,613' - 3,720' Tubing: (size, grade, and MD) NA NA NA Packers and SSSV (type and measured depth) NA NA 12. Stimulation or cement squeeze summary: Intervals treated (measured): 16' of 2-3/8" (4 shots per ft) guns, with 60° phasing, were used to perforate the Sterling Pool-3 zone at 3,820'-3,836' IND. Treatment descriptions including volumes used and final pressure: 13. Representative Daily Average Production or Injection Data Oil-Bbl Gas-Mcf Water-Bbl Casing Pressure Tubing Pressure Prior to well operation: 0 0 0 63 NA Subsequent to operation: 0 30 0 5 NA 14. Attachments: 15. Well Class after work: Copies of Logs and Surveys Run Exploratory ^ Development ^~ - Service ^ Daily Report of Well Operations X 16. Well Status after work: Oil ^ Gas ^~ - WAG ^ GINJ ^ WINJ ^ WDSPL ^ 17. I hereby certify that the foregoing is true and correct to the best of my knowledge. Sundry Number or N/A if C.O. Exempt: 308-267 Contact Kevin Skiba (907) 283-1371 Printed Name Kevin J. Skiba Title Engineering Technician Signature ~~ ~ ~ Phone (907) 283-1371 Date September 23, 2008 Form 10-404 Revised 04/200E;!„_, ~ ~ u Submit Original Only ~d ~~ ,~,~ Marathon Operations Summary Report ,,,~~, O~~ COY Well Name: KENAI UNIT 21-7X Daily Operations Re ort Date: 8113!2008 Job Cate o R&M MAINTENANCE 24 Hr Summary MIRU Expro to perforate 3820' - 3836' (OH). Tag fill @ 3749'. Unable to perforate. RD Expro. Ops Trouble Start Time End Time Dur hrs 0 5 Co de Aotivi Code Status Code Comment 08:00 09:00 1.00 SAFETY MTG AF Hold PJ SM. Discuss alarms, muster area, and emergency response. Discuss Expro JSA and specific job hazards. Make job assignments. Obtain SWP. 09:00 09:30 0.50 RURD ELEC AF Spot Expro equipment. Call for electrician and UOSS mast truck. 09:30 09:45 0.25 SAFETY MTG AF Hold pre-lift meeting to remove well house. Discuss UOSS JSA and make job assignments. 09:45 10:00 0.25 PREP LOC AF Electrian LOTO breaker and disconnect electricals. Pick well house and remove. 10:00 11:15 1.25 RURD ELEC AF RU E-line unit. PU lubricator. MU tool string. 11:15 11:27 0.20 SAFETY MTG AF Hold Explosives SM. Check stray voltages, attach grounds, and shut down generator. Shut down all cell phones and co. radioes. Post signage and guard at gate to pad. Using the Safe Perforating System. 11:27 11:42 0.25 RURD ELEC AF Arm perforating guns. Pull up into lubricator and carry lubricator to WH. PTest lubricator. Test good. 11:42 12:42 1.00 RUNPUL ELEC AF RIH (1) wl perforating guns. Run correlation pass thru stage collar @ 3386'. No short joints for correlation. RIH. Tag sticky mud @ 3749' KB._Attempt several to s to break thru brid a w/o succes .POOH. 12:42 12:57 0.25 SAFETY MTG AF @ 200'. Shut down and hold Explosives SM. Check stray voltages, attach grounds, and shut down generator. Shut down all cell phones and co. radios. Post signage and guard at gate to pad. Using the Safe Perforating System. 12:57 14:12 1.25 RURD ELEC AF OOH. Dis-arm auns. LD pyns and lubricator. RD E-line unit. Install tree cap. PTest cap. Test good. 14:12 14:27 0.25 SECURE WELL AF Secure well head and location. Turn in permitt. Sign out and leave loc. Re ort Date: 8!1412008 Job Cate o R&M MAINTENANCE 24 Hr Summary MIRU Pollard to bail fll from 3749' KE. 3" bailer tagged fi ll @ 4262' KB. 3.80" GR ran to 4264' KB. 3-318" x 16'-1"dummy gun set down @ 3775' KB. Ops Trouble Start Time End Time Dur hrs O s Code Activi Code Status Code Comment 08:00 08:45 0.75 SAFETY MTG AF Hold PJ SM. Discuss alarms, muster area, and emergency response. Discuss Pollard JSA and specifc job hazards. Make job assignments. Obtain SWP. 08:45 10:30 1.75 RURD SLIK AF RU slickline unit. PU lubricator. MU tool string - rs, kj, stem, kj, oj, Issj, 3-112" dd bailer. Tag fill (a~262' KB. POOH. OOH. Recover 1 qt. of fine black sand and 1 al of water. 10:30 11:15 0.75 RUNPUL SLIK AF RIH (1) w13" DD bailer. Tap fi1~4262' KB, POOH. OOH. Recover 1 qt. of fine black sand and 1 gal of water. www.peloton.com Report Printed: 9!2312008 -` Marathon '~ Operations Summary Report ,,,,~ ~~~~ ~ Well Name: KENAI UNIT 21-7X Start Time End Time Dur hrs 0 s Code Adivi Code Ops Status Trouble Code Comment 11:15 12:00 0.75 RUNPUL SLIK AF RIH (2) w/ 3.80" GR. Set down @3775' KB. Work tools. Cleared up this area and fell to 4264' KB. POOH. OOH. 12:00 13:00 1.00 WAITON EOIP AF Wait on 3-3~" dummy uns to run drift thru tight spot. 13:00 13:54 0.90 RUNPUL SLIK AF RIH (3) w/3-318" x 16'-1 " L dummy guns. Set dawn @3775' KB. Work tools. Unable to work down thr POOH. OOH. 13:54 14:54 1 D0 RURD SLIK AF RD slickline unit. LD lubricator and tools string. Install tree cap and PTEst cap. Test good. 14:54 15:09 0.25 SECURE WELL AF Secure well head and location. Turn in permit and sign out. Daily Operations Re ort Date: 8/152008 Job Cate o R&M MAINTENANCE 24 Hr Summary MIRU Expro to perforate 2-3r8" 4 spf 60 degree phased TAG-2375-402NT3 perforating guns w/ PX-1 firing head from 3820' - 3836' (OH), 3818' - 3834' (CH). RD Expro. Ops Trouble Start Time End Time Dur hrs O s Code Activi Code Status Code Comment 07:30 08:15 0.75 SAFETY MTG AF Hold PJ SM. Discuss alarms, muster area, and emergency response. Discuss Expro JSA and specific job hazards. Make job assignments. Obtain SWP. 08:15 09:00 0.75 RURD ELEC AF RU E-line unit. PU lubricator. MU tool string. 09:00 09:12 0.20 SAFETY MTG AF Hold Explosives 5M. Check stray voltages, attach grounds, and shut down generator. Shut down all cell phones and co. radioes. Post signage and guard at gate to pad. Using the Safe Perforating System. 09:12 09:27 0.25 RURD ELEC AF Arm perforating guns. Pull up into lubricator and carry lubricator to WH. PTest lubricator. Test good. 09:27 10:27 1.00 RUNPUL ELEC AF RIH (1) to perforate 2-318" 4 spf 60 degree phased TAG-2375-402NT3 perforating guns w/ PX-1 fring head from 3820'- 3836' (OH), 3818'- 3834' (CH). Run correlation pass thru stage collar @ 3386'. No short joints for correlation. Pull up into position- CCL depth 3815'. Perforate 2-3~8" 4 spf 60 degree phased TAG-2375-402NT3 perforating guns w/ PX-1 firing head from 3820'- 3836' OH 3818' - 3834' CH . POOH. Blew down well to 20 psi prior to perforating. 10:15 20 psi Shoot guns-well shut in 10:17 30 psi 10:19 35 psi 10:20 40 psi 10:23 50 psi 10:30 55 psi 11:00 57 psi 10:27 11:42 1.25 RURD ELEC AF OOH. LD guns and lubricator. RD E-line unit. Install tree cap. PTest cap. Test good. 11:42 11:57 0.25 SECURE WELL AF Secure well head and location. Turn in permitt. Sign out and leave loc. Re ort Date: 8/258008 Job Cate o R&M MAINTENANCE ~4 Hr Summary Pv11RU +,vire line aril Tag fll, run PT survey. Start Time End Time Dur hrs O s Code Adivi Code Ops Status Trouble Code Comment OB:00 09:00 1.00 SAFETY MTG AF Spot equipment. Held PJSM and discussed safety concerns while Ifting loads with boom. Discussed tripping hazardous around well and Stop the job authority while working. 09:00 11:00 2 D0 RURD SLIK AF RU equipment around well. PU lubricator. MU 1.75" tool string with DD hailer. PT lubricator to 500 psiig. Flowing WHP = 30 psig. 200 MCFPD rate. Good test. 11:00 12:D0 1 D0 GAIL FILL AF Open well RIH with bailer down to 4221' KBD. (21' KB). POOH with bailer. 12:00 15:00 3.00 WORK SLIK AF OOH. Sample of sand in bailer. MU PT gauges. RIH @ 120 FPM. Made 10 minute stop @ 3775' MPP. 3 minute stops at 3275', 2775', 2275', 21 '. Shut swab. Check gauges for data. 15:00 16:00 1 D0 RURD SLIK AF Verifed gauges have good data. RD wire line unit. 16:00 17:00 1.00 RURD SLIK AF Clean up around well. Pollard left lease. Note: Pressure on bottom at MPP @ 80 psig, suface 30 psig. Presssure change around the Cement stage collar at 3394'. 50 psig pressure loss or cross flow per Feld data. www.peloton.com Report Printed: 9838008 u 50-133-20558-00-00 Des: A-028142 :vation: 87' (21' AGL) fie: 60° 27' 38.787" N :ude: 151 ° 15' 42.359" W 272,250.76 2,362,523.31 3/15/2006 3/22/2006 Teased: 12:OOhrs 2/29/2006 KU 21-7x Kenai Gas Field Pad 14-6 484' FSL, 1,330' FWL, Sec. 6, T4N, R11W, S.M. ,~ i r • w C C C C C C Q 9-5/8" L-80 40 ppf T~ Bottom MD 0' 1,525' TVD 0' 1,525' 12-1/4" hole cmt with Type 1: Top job = 400 sks (92 bbls), 15 ppg, 1 bbl of cmt to surface Bottom job =340 sks (150.35 bbl), 12.0 ppg 5-1/2" J-55 17 ppf IBT Tom Bottom MD 0' 5,022' TVD 0' 4,875' 8-1/2" hole cmt with Class G: Top plug = 250 sks (82 bbis), 12.7 ppg, trace to surface Bottom plug = 260 sks (101 bbls), 13.5 ppg TD PBTD 5,032' MD 4,939' MD 4,845' TVD 4,792' TVD Well Name & Number: Kenai Unit 21-7x Lease: Kenai Gas Field A-028142 Perforations: (MD) 3,723' - 3,836' (TVD): 3,613' - 3,720' Angle @KOP and Depth: 4.5° ~ 1,875' MD Angle/Perfs: Vertical Date Completed: 09/01/06 Ground Level: 65' above MSL RKB: 21' Revised by: Kevin Skiba Last Revision Date: 09/23/08 Cement Stage Collar @ 3,394' RKB MD Ft TVD Gun Tvue Date 0 3,723'-3,740' 17' 3,613'-3630' 3-3/8" (9/1/06) 0 3,756'-3,766' 10' 3,645'-3,654' 3-3/8" (9/1/06) 1 3,820'-3,836' 16' 3,705'-3,720' 2-3/8" (8/14/08) Fill Tagged @ 4,221' MD (8125/08) M MARATHON Conductor 13-3/8" K-55 68 ppf T~ Bottom MD Surf 126' TVD Surf' 126' DATA SUBMITTAL COMPLIANCE REPORT 9/12/2008 Permit to Drill 2060290 Well Name/No. KENAI UNIT 21-7X Operator MARATHON OIL CO API No. 50-133-20558-00-00 MD 5032 TVD 4885 Completion Date 9/1/2006 Completion Status 1-GAS Current Status 1-GAS UIC N REQUIRED INFORMATION Mud Log No Samples No Directional Survey Yes DATA INFORMATION Types Electric or Other Logs Run: Precision Quad combo (GR/res/sonidneutron) (data taken from Logs Portion of Master Well Data Maint Well Log Information: Log/ Electr Data Digital Dataset Log Log Run Interval OH / Type Med/Frmt Number Name Scale Media No Start Stop CH Received Comments Well Cores/Samples Information: Name Sample Interval Set Start Stop Sent Received Number Comments ADDITIONAL INFORMATION Well Cored? Y ~1 Daily History Received? ~N Chips Received? y l N ~ Formation Tops ~ N Analysis Yom/ y~ Received? Comments: a~~~'~l~ ~-+~~~~~ ,bo-~.y ~„~-~~, ~~i~~~ D ti`4 ,.. ~ r r i v. ~ l u 7~JlN~~ , Compliance Reviewed By: Date: t~ ..~)cQy~ i • Okiand, Howard D (DOA) From: Okland, Howard D (DOA) Sent: Tuesday, September 16, 2008 8:42 AM To: 'Zeman, Kaynell J.' Subject: Kenai Unit 21-7X Kaynell, Help. No logging data, in any form, was submitted for: Kenai Unit 21-7X API 50-133-20558-00 The completion report states that "Precision Quad Combo (GR/res/sonic/neutron)" logs were run. Please submit as soon as possible the missing data. TNX Howard 4n~ ~4~ '12"5 1 'a °ya ~ R e l i ~ I. i ( ~~ ~~~ a L3 1...-~ ;'~ ~. ALASSA OIL A1~TD GAS COI~TSERQATI011T COMMISSIOK Ken Walsh Senior Production Engineer Marathon Oil Company PO Box 1949 Kenai AK 996 1 1-1 949 • SARAH PALIN, GOVERNOR 333 W. 7th AVENUE, SUITE 100 ANCHORAGE, ALASKA 99501-3539 PHONE (907) 279-1433 FAX (907) 276-7542 Re: Kenai Gas Field, Sterling 3 Gas Pool, Kenai Unit 21-7x Sundry Number: 308-267 a ~ .- Q a~ Dear Mr. Walsh: Enclosed is the approved Application for Sundry Approval relating to the above referenced well. Please note the conditions of approval set out in the enclosed form. When providing notice for a representative of the Commission to witness any required test, contact the Commission's petroleum field inspector at (907) 659-3607 (pager). As provided in AS 31.05.080, within 20 days after written notice of this decision, or such further time as the Commission grants for good cause shown, a person affected by it may file with the Commission an application for rehearing. A request for rehearing is considered timely if it is received by 4:30 PM on the 23rd day following the date of this letter, or .the next working day if the 23rd day falls on a holiday or weekend. A person may not appeal a Commission decision to Superior Court unless rehearing has been requested. Sincerely, -~~a`` Daniel T. Seamount, Jr. v7'~"~ Chair DATED this ~ day of , 2008 Encl. • M Marathon MARATHON Oil Company July 25, 2008 Mr. Tom Maunder Alaska Oil & Gas Conservation Commission 333 W 7th Ave Anchorage, Alaska 99501 Reference: 10-403 Application for Sundry Approvals Field: Kenai Gas Field Well: Kenai Unit 21-7x Dear Mr. Maunder: • Marathon Oil Company Alaska Asset Team P.O. Box 1949 Kenai, AK 99611 Telephone 907/283-1371 Fax 907/283-1350 €~ ,~. g ~U~ ~ 4llt~ ~~ . ~'° Marathon requests permission to enhance gas production from KU 21-7x well by adding perforations to the Sterling Pool 3 A-11 sands. Plans are to add 16 feet of perforations below the existing perforations at 3,820' MD to 3,836' MD. Please contact me at (907) 283-1371 if you have any questions or need additional information. Sincerely, ..Q~ri/Lt/ ` Kevin J. Skiba Engineering Technician Enclosures: 10-403 Sundry Notice Perforation Procedure Well Schematic cc: AOGCC Houston Well File Kenai Well File KJS KDW , ~ STATE OF ALASKA AL O!L AND GAS CONSERVATION COM ION .~~)~ ~ ~~ APPLICATION FOR SUNDRY APPROyALS , ; ~n aa~ ~~ stn ~„ ; ,~ . . ~~ ~~ ~~ ~,~` `~ 1. Type of Request: Abandon ^ Suspend ^ Operational shutdown^ Perforate ^~ . ~ Waiver ^ 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: Marathon Oil Company 4. Current Well Class: 5. Permit to Drill Number: Development ^- Exploratory ^ 206-029 - 3. Address: p0 Box 1949 Stratigraphic ^ Service ^ 6. API Number: Kenai Alaska, 99611-1949 50-133-20558-00-00 - 7. If perforating, closest approach in pool(s) opened by this operation to nearest 8. Well Name and Number: property line where ownership or landownership changes: Spacing Exception Required? Yes ^ No Q Kenai Unit 21-7x' 9. Property Designation: 10. KB Elevation (ft): 11. Field/Pool(s): - A - 028142 87' (21' AGL) Kenai Gas Field /Sterling Poo13 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): 5,032' , 4,845' 4,939' - 4,792', NA NA Casing Length Size MD ND Burst Collapse Structural Conductor 105' 13-3/8" 126' 126' 3,450 psi 1,950 psi Surface 1,504' 9-5/8" 1,525' 1,525' 5,750 psi 3,090 psi Intermediate Production 5,001' 5-1 /2" 5,022' 4,875' 5,320 psi 4,910 psi Liner Perforation Depth MD (ft): Perforation Depth TVD (ft): Tubing Size: Tubing Grade: Tubing MD (ft): 3,723' - 3,766' 3,613' - 3,654' NA NA NA Packers and SSSV Type: Packers and SSSV MD (ft): NA NA 13. Attachments: Description Summary of Proposal ^ 14. Well Class after proposed work: Detailed Operations Program Q BOP Sketch ^ Exploratory ^ Development^ Service 15. Estimated Date for 16. Well Status after proposed work: August 4, 2008 Commencing Operations: Oil ^ Gas ^~ Plugged ^ Abandoned ^ 17. Verbal Approval: Date: WAG ^ GINJ ^ WINJ ^ WDSPL ^ Commission Representative: 18. I hereby certify that the foregoing is true and correct to the best of my knowledge. Contact Kevin Skiba (907) 283-1371 Printed Name Ken D. Walsh Title Senior Production Engineer Signature ~~ ~ Phone Date (907) 283-1311 July 25, 2008 COMMISSION USE ONLY Conditions of approval: Notify Commission so that a representative may witness Sundry Number: ~~ ~ ~~ Plug Integrity ^ BOP Test ^ Mechanical Integrity Test ^ Location Clearance ^ Other. Subsequent Form Required: ~"~,~ y APPROVED BY (~/ ~ Approved by' COMMISSIONER THE COMMISSION Date: vX v ~- Form 10-403 Revised 06/2006 ~~, E ~ ~~ ~l~C ~ 2008 Submit in Duplicate • • M MARATHON July 21, 2008 Marathon Oil Corporation Alaska. Region KU 21-7X WBS # Objective: Perforate Sterling Poo13 A-11 zone @ 3820'- 3836' with 16' of 3-3/8" HSD guns loaded 6 SPF 60 degree-phased with SDP-3125-311NT3 charges and PX-1 firing head. API target performance is 0.36" entrance hole and 40.25 "penetration. Max gun swell in air is 3.625" OD. Current status: Well is currently dead with no shut-in surface pressure. Procedure• 1. MI diesel-fueled man-lift and remove well house. MIRU Expro Wireline with full lubricator, pump-in sub, flow tubes, and pressure control equipment on 4-1/2" Otis Tree cap. Hold PJSM. P-Test lubricator to 2000 psi with 6% KCL water. RIH with 3.75" GR to 3900'. 2. Run correlation log (Stage Collar 3386' - 3394'). 3. RIH w/ 16' of 3-3/8" HSD guns loaded 6 SPF 60 degree-phased with SDP-3125- 311NT3 charges. Correlate Expro CBL/GR/CCL log depth to open hole Logs. Pull up into position and shoot 3820'- 3836' (OH). POOH. 4. RD Expro. 5. Produce well to sales. CONTACTS Ken Walsh: 907-283-1311 (w) Scott Szalkowski: 713-296-3390 (w) 907-394-3060 (c) 713- 301-9834 (c) Lyndon Ibele: 907-565-3042 (w) Clyde Scott: 713-296-2336 (w) 907-748-2819 (c) Ninilchik Operators: 907-260-7660 or 907-567-3248 (Susan Dionne Pad) KGF Operators: 907-2831305 KU 21-7X Add perfs • 50-133-20558-00-00 Des: A-028142 ovation: 87' (21' AGL) ie: 60° 27' 38.787" N :ude: 151 ° 15' 42.359" W 272,250.76 2,362,523.31 3/15/2006 3/22/2006 Teased: 12:OOhrs 2/29/2006 KU 21-7X Kenai Gas Field Pad 14-6 484' FSL, 1,330' FWL, Sec. 6, T4N, R11 W, S.M. Cement Stage Collar @ 3394' RKB F.". ~• ., ': MD Ft. TVD Gun Type Date !3'-3,740' 17 3,613'-3630' 3-3/8" (9/1/06) i6'-3,766' 10 3,645'-3,654' 3-3/8" (9/1/06) 16 3,705'-3720' C M MARATNOM Conductor 13-3/8" K-55 68 ppf Top Bottom MD Surf' 126' TVD Surf' 126' Surface Casino 9-5/8" L-80 40 ppf Top B om MD 0' 1,525' TVD 0' 1,525' 12-114" hole cmt with Type 1: Top job = 400 sks (92 bbls), 15 ppg, 1 bbl of cmt to surface Bottom job =340 sks (150.35 bbl), 12.0 ppg 5-1/2" J-55 17 ppf IBT Tsg Bottom MD 0' 5,022' TVD 0' 4,875' 8-1/2" hole cmt with Class G: Top plug = 250 sks (82 bbls), 12.7 PP9~ trace to surface Bottom plug = 260 sks (101 bbls), 13.5 ppg TD PBTD 5,032' MD 4,939' MD 4.$45' TVt~ 4,792' TuG° Well Name & Number: Kenai Unit 21-7X Lease: Kenai Gas Field, Pad 146 Perforations: (MD) 3,723' - 3,766' (TVD): 3,613' - 3,654' An le KOP and Depth: An le/Perfs: Vertical Date Completed: 09/01/06 Ground Level: 65' above MSL RKB: 21' Prepared By: Kevin Skiba Last Revision Date: 07/25/08 ~1 L.J M Marathon MARATHON Oil Company Marathon Oil Company Alaska Asset Team P.O. Box 1949 Kenai, AK 99611 Telephone 907/283-1326 Fax 907/283-1350 EEIVED September 21, 2006 Mr. Winton Hubert Alaska Oil & Gas Conservation Commission 333 W 7t" Ave Anchorage, Alaska 99501 ~~:? 2 6 2006 Aiaska Cil & Gas Cons. Commission Anchorage Reference: 10-407 Completion Report Field: Kenai Gas Field Field Well: KU 21-7X Dear Mr. Hubert: Well KU 21-7X was drilled in March 2006 and perforated on Sept 2"d 2006. The well is completed in the Sterling Pool 3, A-10 sand and is currently producing 2.2MM at 90 psi flowing pressure. If you have any questions or need further information please call me at (907) 398-9954. Sincerely, Michael A. Mullin Senior Production Engineer Enclosures: 10-407 Completion Report Well Schematic Operations Summary Directional Survey cc: Houston Well File Kenai Well File MAM ORIGINAL fT STATE OF ALASKA ~~~~~/~` ALASK~L AND GAS CONSERVATION COMMIS SEp WELL COMPLETION OR RECOMPLETION REPORT 1~(~QG~ ~ zdo6 1a. Well Status: Oil Gas 0 Plugged ^ Abandoned zoaac2s.~os GINJ^ WINJ^ WDSPL^ No. of Completions 1 Suspended WAG zo.oaczs.~~o Other 1 b. Well Class: S CpnS. Development ^~ 'a~~r tbbory Service ^ Stratigraphir~P~st^ 2. Operator Name: Marathon Oil Company 5. Date Comp., Susp., or Aband.: 1-Sep-06 12. Permit to Drill Number: 206-029 3. Address: P. O. Box 1949, Kenai, AK 99611 6. Date Spudded: March 16, 2006 13. API Number: 50-133-20558-00-00 4a. Location of Well (Governmental Section): Surface: 484' FSL, 1,330' FWL, Sec. 6, T4N, R11W, S.M. 7. Date TD Reached: March 23, 2006 14. Well Name and Number: KU 21-7X Top of Productive Horizon: 458' FSL, 1900' FWL, Sec. 6, T4N, R11 W, S.M. 8. KB Elevation (ft): 87' (21' AGL) 15. Field/Pool(s): Kenai Gas Field Total Depth: 240' FSL, 2060' FWL, Sec. 6, T4N, R11 W, S.M. 9. Plug Back Depth(MD+TVD): 4939 MD RKB / 4792' TVD Sterling Pool 4b. Location of Well (State Base Plane Coordinates): Surface: x- 272,250.76 y- 2,362,523.31 Zone- 4 10. Total Depth (MD +TVD): 5032 MD RKB / 4885' TVD 16. Property Designation: A-028142 TPI: x- 272,770.76 y- 2,362,497.31 Zone- 4 Total Depth: x- 272930.76 y- 2362479.31 Zone- 4 11. Depth Where SSSV Set: N/A 17. Land Use Permit: 18. Directional Survey: Yes ~ No 19. Water Depth, if Offshore: N/A feet MSL 20. Thickness of Permafrost: N/A 21. Logs Run: Precision Quad combo (GR/res/sonic/neutron) 22. CASING, LINER AND CEMENTING RECORD CASING WT. PER GRADE SETTING DEPTH MD SETTING DEPTH TVD HOLE SIZE CEMENTING RECORD AMOUNT FT TOP BOTTOM TOP BOTTOM PULLED 13-3/8" 68 K-55 0 83' 0 126' Driven 9-5/8" 40 L-80 0 1525' 0 1525' 12-1/4" 340 sxs type 1.400 sxs T-1 5-1/2" 17 J-55 0 5022' 0 4875' 8-1/2"" 250 Sxs 13.5ppg "G" 260 Sxs 12.7 ppg "G" 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) Sterling upper A-10, 3-3/8", 4 SPF. 3723' - 3740' MD / 3614' - 3630' TVD Sterling lower A-10, 3-3/8", 4 SPF. 3756' - 3756' MD / 3644' - 3654' TVD 25. ACID, FRACTURE, CEMENT SQUEEZE, ETC. DEPTH INTERVAL (MD) AMOUNT AND KIND OF MATERIAL USED 26. PRODUCTION TEST Date First Production: September 2, 2006 Method of Operation (Flowing, gas lift, etc.): FlOwltl Date of Test: 10/5/2006 Hours Tested: 12 Production for Test Period Oil-Bbl: 0 Gas-MCF: 1100 Water-Bbl: 0 Choke Size: 64/64" Gas-Oil Ratio: N/A Flow Tubing Press. gp Casing Press: 0 Calculated 24-Hour Rate ~- Oil-Bbl: 0 Gas-MCF: 2200 Water-Bbl: 0 Oil Gravity -API (corr): N/A 27. CORE DATA Brief description of lithology, porosity, fractures, apparent dips and presence of oil, gas or water (attach separate sheet, if necessary). Submit core chips; if none, state "none". Sterling A-8 and A-11 are poorly developed in the well. Sterling A-10 is gas bearing and in production. Sterling B-4 is gas on water at 1400 psi and may be targetteed in the future. No Core chips. ~` i ~ ~ S ~1=~, SEP ~ 8 2006 ~~ ~~ im~SS%Qi7 Form 10-407 Revised 12/2003 CONTINUED ON REVERSE /'_ 28. GEOLOGIC MARKE 29. ORMATION TESTS NAME TVD Include and briefly su ize test results. List intervals tested, and attach Sterling Formation A-8 sand 3636' 3531' detailed supporting data as necessary. If no tests were conducted, state Sterling Formation A-9 sand 3675' 3568' "None". Sterling Formation A-10 sand 3716' 3607' Sterling A-10 was perforated and produced 2.2MMSCF/day at 90 psi Sterling Formation A-11 sand 3819' 3704' flowing tubing pressure. Sterling Formation B-1 sand 3872' 3754' Sterling Formation B-5 sand 4278' 4140' Sterling Formation C-1 sand 4588' 4442' Sterling Formation C-2 sand 4730' 4584' 30. List of Attachments: Wellbore Diagram ,Daily Summary, Directional Survey 31. I hereby certify that the foregoing is true and correct to the best of my knowledge. Contact: Mickey Mullin Printed Name: Michael A. Mullin Title: Senior production Engineer Signature: ~ Phone: (907) 283-1337 Date: 21-Sep-06 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". ORIGINAL Form 10-407 Revised 12/2003 M IIARAT11011 Kenai Gas Field KU 21-7X Pad 14-6 API 50-133-20558000 Spud Date = 11 Mar2O06 • J Perforations Upper A-10 (Pool 3) 3723' - 3740' Lower A-10 (Pool 3) 3756' - 3766' PBTD = 4939' RKB TD = 5032' RKB. 4788' TVD • 13-3/8" 68#, K-55 Drivepipe @126' 9-5/8", 40", L-80, casing @ 1525' Cmt w/ 340 sx Type 1 Top Job of 400 Sxs T-1 Cement Stage Collar @ 3393' RKB 5-1/2" 17 ppf, J-55, IBT Casing @ 5022' Cmt w/ 260 sx 13.5# "G" plus 250 sxs 12.7# "G" through stage collar. Well Name & Number: KU 21-7X Lease Kenai Gas Field, Pad 14-6 Perforations: (MD) 3723-40, 3756-66 (TVD) 3613-29, 3645-54 Angle/Perfs vertical Angle @KOP and KOP TVD Date Completed: 09/01(06 RKB: Prepared By: Mickey Mullin Last Revision Date: 09/01/06 ORIGINAL • • Marathon ©N Company Page 1 of 4 Operations Summary Report Legal Well Name: KENAI UNIT 21-7X Common Well Name: KENAI UNIT 21-7X Event Name: ORIGINAL DRILLING Contractor Name: GLACIER DRILLING Rig Name: GLACIER DRILLING Date From - To Hours Code Sub^ phase Spud Date: 3/11/2006 Start: 3/10/2006 End: 3/25/2006 Rig Release: Group: Rig Number: 1 Description of Operations 3/13/2006 12:00 - 00:00 ~ 12.00 RURD_~ RIG_ ~ MIRU Accept rig from KBU24-6RD@12:OOhrs 3/12/2006. 00:00 - 06:00 3/14/2006 06:00 - 12:00 12:00 - 18:00 18:00 - 00:00 00:00 - 06:00 3/15/2006 06:00 - 10:00 10:00 - 12:30 12:30 - 14:00 14:00 - 16:00 16:00 - 03:00 03:00 - 05:00 05:00 - 06:00 3/16/2006 06:00 - 07:00 07:00 - 09:00 09:00 - 09:30 09:30 - 10:00 10:00 - 13:00 13:00 - 13:30 13:30 - 14:30 14:30 - 15:30 15:30 - 17:00 17:00 - 18:00 18:00 - 18:15 18:15 - 19:00 19:00 - 19:30 19:30 - 20:30 20:30 - 06:00 3/17/2006 06:00 - 07:30 07:30 - 08:30 6.00 ~ RURD_~ RIG_ MIRU 6.00 ~ RURD_~ RIG_ ~ MIRU 6.00 RURD_ RIG_ ~ MIRU 6.00 ~ RURD_~ RIG_ MIRU 6.00 ~ RURD_~ RIG_ ~ MIRU 4.00 RURD RIG MIRU 2.50 NUND BOPE SURDRL 1.50 NUND BOPE SURDRL 2.00 NUND BOPE SURDRL 11.00 NUND BOPE SURDRL 2.00 PULD_ DP_ SURDRL 1.00 TEST BOPE SURDRL 1.00 PULD_ DP_ SURDRL 2.00 PULD_ DP_ SURDRL 0.50 PULD_ BHA_ SURDRL 0.50 TAG_ BOTM SURDRL 3.00 DRILL_ ROT_ SURDRL 0.50 TRIP_ BHA_ SURDRL 1.00 PULD_ BHA_ SURDRL 1.00 SERVIC RIG_ SURDRL 1.50 PULD_ BHA_ SURDRL 1.00 TRIP_ BHA_ SURDRL 0.25 DRILL_ ROT_ SURDRL 0.75 TRIP_ BHA_ SURDRL 0.50 RUNPU WBSH SURDRL 1.00 TRIP_ DP_ SURDRL 9.50 DRILL ROT SURDRL 1.50 DRILL_ ROT_ SURDRL 1.00 CIRC MUD SURDRL GINAI PTSM w/for rig move. Set pits, pump room, sub base, mud boat, carrier, generator house, boiler, water tank, mechanics shop and parts van. Install outriggers, level and secure carrier, terminate electrical lines. Set choke house. PJSM w/crane operator. Set cuttings tank, stairs, landingws, driller side outriggers, doghouse, back landing and windwalls, conex and panic line. R/U choke house and dog house electrical. Run steam around rig. Blow down steam lines and C/O boiler check valve. M/U and lower stand pipe and cement line. R/U cuttings tank, choke lines to flow line and to gas buster. Run electrical to pump room. Hook up water and air lines. R/U u-tube for gas buster. Set hansen tank. PJSM: Spot Epoch MI And MWD Unit. Prep And Scope Up Mast. Set And R/U # 3 Mud Pump. Install Exhaust On Carrier Motors. R/U Beaver Slide& Set Cat Walks. R/U Driller Console And Brake Linkage PJSM: Pin Torque Tube Set On Floor, Berm Rig. Run Water Line To Rig. PJSM: Raise Torque Tube And Pin To Mast, R/U Top Drive. Fill Pits W/ Water Begin To Mix Spud Mud. R/U Spinners Tongs. Drillpipe Handling Tools R/U monkey board windwalls. Epoch trip tank sensors. Hook up koomey lines. Mix mud. Final cut 13 3/8" conductor and dress stub. Install 13 3/8" X 13 5/8" 5M slip on wellhead. Test to 1500psi/10min. N/U 24" X 13 5/8" 5M spacer spool. N/U 13 5/8"5M side outlet spool. N/U S,Rd,A, 13 5/8" 5M BOP stack. Install Diverter Line And Knife Valve, N/U Flow Line & Trip Tank Lines Note: Incorrect API Ring Installed On 13 5/8" X 11"Spool. N/D And Replace. PJSM: P/U 5 "Drillpipe /Drift & Stand Back (40 jts} PJSM: Function Test Diverter System. Test Successful. Test Witnessed By Jeff Jones AOGCC. Cont. to P/U and make up 25STNDS 5" DP. Rack and strap 5" HWDP. M/U 12 1/4 bit and 8" mud motor. RIH tag@105' Spud well @ 09:30 hrs. Clean out conductor to 127'. Drill F/127' to 333'. ART=1.25 POOH to top of motor. P/U HWDP and rack back in derrick. Pump up top drive compensators. P/U remaining BHA components. RIH w/HWDP. Take survey @ 220'. Drill and survey F/333' to 360' ADT= .10 POOH to set wear bushing. Set Wear Bushing TIH To 360' after setting wear bushing. Drill Survey F- 360' T 1363' Normal Tq /Drag Art = 5.80hrs AST= .20hr. ADT= 6hrs Drill and survey F/1363' to 1540'. ART=1.00 AST=.30 Circulate clean - CBUX3, 640GPM, 1500psi, 100RPM, pump Hi Vis Printed: 9!19/2006 7:50:33 AM • Marathon. OiI Company Page 2 of 4 Opera#ions Summary Report Legal Well Name: KENAI UNIT 21-7X Common Well Name: KENAI UNIT 21-7X Spud Date: 3/11/2006 Event Name: ORIGINAL DRILLING Start: 3/10/2006 End: 3/25/2006 Contractor Name: GLACIER DRILLING Rig Release: Group: Rig Name: GLACIER DRILLING Rig Number: 1 Date From - To Hours Code Code Phase bescription of Operations 3/17/2006 07:30 - 08:30 1.00 CIRC_ MUD_ SURDRL sweep after first B/U. 08:30 - 09:00 0.50 CIRC_ MUD_ SURDRL Flow check and pump Dry Job. 09:00 - 09:30 0.50 TRIP_ DP SURDRL POOH w/DP. No tight spots. 09:30 - 10:30 1.00 TRIP_ BHA SURDRL Cont. POOH w/BHA. No tight spots. 10:30 - 12:00 1.50 SLPCUT DLIN SURDRL Slip and cut drill line. 12:00 - 13:00 1.00 TRIP_ DP_ SURDRL RIH. Wash last stand down(no fill). 13:00 - 14:00 1.00 CIRC_ MUD_ SURDRL Circulate clean - CBUX2, 640GPM, 100RPM, 1500psi. Drop carbide 49%W/O. 14:00 - 14:30 0.50 CIRC_ MUD_ SURDRL Observe well. Losses 1-26PH. Pump dry job. 14:30 - 15:00 0.50 TRIP_ DP_ SURDRL POOH w/DP. 15:00 - 16:00 1.00 TRIP_ BHA_ SURDRL Cont. POOH w/HWDP. 16:00 - 17:30 1.50 TRIP_ BHA_ SURDRL UD dir tools and bit. 17:30 - 18:00 0.50 RUNPU WBSH SURDRL Pull wear bushing. 18:00 - 18:30 0.50 RURD_ CSG_ SURCSG PJSM; Make Gauge Run W/ 13 5/8 X 9 5/8 Csg. Hanger 18:30 - 20:30 2.00 RURD_ CSG_ SURCSG C/O Long Bails R/U Csg. Running Tools 20:30 - 21:30 1.00 RUN_ CSG_ SURCSG PJSM: M/U Shoe Track And Baker Lk. Pump And Ck Floats. Note Centralizers Hanging Up In Conductor. After 6 jts were run pipe freed up 21:30 - 02:00 4.50 RUN_ CSG_ SURCSG Cont. To Run 9 5/8 40ppf L-80 Csg. Run Total Of 37jts. Land Out On 13 3/8 X 9 5/8 Vetco Hanger Shoe At 1524' 02:00 - 02:30 0.50 RURD_ OTHR SURCSG R/U BJ Cement Head, Hold Safety Meeting 02:30 - 03:00 0.50 CIRC_ MUD_ SURCSG Circ. And Cond. Mud. 3759 Stks 1.5 X Csg. Volume 03:00 - 04:30 1.50 PUMP_ CMT_ SURCSG Mix And Pump 40bb1 8.4 ppg Mud Clean 2 Spacer. Pump 5 bbl Water Ahead, Test Cmt Lines To 2000. Release Bottom Plug. Mix And Pump 340sx Type 1 Cement W/ 22% LW6 20% MPA 1 1 % A2, 3% CD 32 2% CaC12, 1ghs FP6L To Yield 150.35bbls 12ppg slurry 04:30 - 05:30 1.00 PUMP_ CMT_ SURCSG Release Top Plug. Displace W/ BJ Unit 111bb1s 9 ppg 3bbls Over Caculated Plug Bumped W 950 psi/ 500psi Over disp. Rate. Bleed Off Floats Held. 100 % Returns. Note No Cement Returned To Surface. CIP @ 0439hrs 05:30 - 06:00 0.50 RURD_ CMT_ SURCSG R/D Cmt Head And Lines 3/18/2006 06:00 - 12:00 6.00 RURD_ CSG_ SURCSG UD landing joint. Empty and clean pits. R/D CSG tools. C/O bales and elevators. Change oil and filters #1 carrier motor. Service carrier. 12:00 - 13:30 1.50 MIX MUD_ SURCSG Mix new Flo-pro mud. N/D diverter line. 13:30 - 17:00 3.50 LOG_ CSG_ SURCSG PJSM. R/U Expro EL. Run temp survey F/surf to 890'(indicated TOC@370'). R/D Expro. Mix mud. 17:00 - 21:00 4.00 NUND BOPE SURCSG PJSM. N/D flowline, trip tank fillup lines, turnbuckles, bell nipple, knife valve, DSA and spacer spool. N/D BOP and diverter "T" and and move out of sub. Mix mud. 21:00 - 22:30 1.50 PULD_ TBG_ SURCSG Attempt to run 3/4" copper tubing down 9 5/8" X 13 3/8" annulus (could not pass collar @ 67'). 22:30 - 23:00 0.50 RURD_ OTHR SURCSG Install mousehole and R/U spinners and pipe stop. 23:00 - 00:00 1.00 MIX_ MUD_ SURCSG Mix mud while wait on TBG. 00:00 - 01:00 1.00 PULD_ TBG_ SURCSG Run 370' of 1/2" copper TBG to tag TOC. 01:00 - 02:00 1.00 CIRC_ MUD_ SURCSG Circ. TBG w/rig test pump. 02:00 - 05:00 3.00 MIX_ MUD_ SURCSG Mix mud and organize rig while wait on BJ. 05:00 - 06:00 1.00 PUMP_ CMT_ SURCSG PJSM prior to top job. Test cement lines. Mix and pump 15ppg cement. 3/19/2006 06:00 - 12:00 6.00 PUMP_ CMT_ SURCSG Mix and pump 400sxs Type"1" cement w/.03%CD-32 to yield 92bbls 15.Oppg slurry for cement top job. Used 1/2" copper TBG w/sweated couplings. Avg rate .46PM w/1000psi. Full returns during job w/1 bbl cement to surface. CIP@1200hr. R/D cement line. 12:00 - 13:00 1.00 PUMP CMT SURCSG PJSM. R/D cement lines. Printed: 9/19/2006 7:50:33 AM • __ Marathon Oil Company Page 3 of 4 Operations Summary Report Legal Well Name: KENAI UNIT 21-7X Common Well Name: KENAI UNIT 21-7X Spud Date: 3/11/2006 Event Name: ORIGINAL DRILLING Start: 3/10/2006 End: 3/25/2006 Contractor Name: GLACIER DRILLING Rig Release: Group: Rig Name: GLACIER DRILLING Rig Number: 1 Date From - To Hours Code ~ Co ~ Phase Description of Operations 3/19/2006 13:00 - 14:30 1.50 TEST_ WLHD SURCSG Install Vetco 13 1/2" X 9 5/8" packoff and test to 5000psi/10min. 14:30 - 20:00 5.50 NUND BOPE SURCSG PJSM. Set stack and N/U. Install bell nipple, fill up, bleeder and trip tank lines. N/U kill and check valve. Install riser and turnbuckles. Install choke and kill lines. Install drip pan and panic line. 20:00 - 00:00 4.00 TEST_ BOPE SURCSG M/U test plug. Test Annular, 2 7/8" X 5 1/2" variable rams, blind rams, choke line valve and HCR valve, check valve, inner and outer kill line valves, 1-12 CMV and TIW valve and IBOP valve to 250/2000psi 10min 00:00 - 00:30 0.50 TEST_ BOPE SURCSG PJSM. Perform accumulator performance test. Install wear bushing. 00:30 - 01:30 1.00 TEST_ CSG_ SURCSG Test 9 5/8" CSG to 2000psi/30min. 01:30 - 06:00 4.50 PULD_ DP_ SURCSG P/U and rack back 5" DP. 3/20/2006 06:00 - 07:00 1.00 PULD_ DP_ SURCSG P/U and rack back 5" DP. 07:00 - 09:00 2.00 PULD_ BHA_ SURCSG P/U 8.5" bit and dir BHA. Orient dir tools. 09:00 - 10:00 1.00 CIRC_ MUD_ SURCSG Test MWD. Test failed - no pulses. Trouble shoot MWD and find that it is plugged with pieces of cement. Cleanout cement and try to test. Test failed. 10:00 - 11:00 1.00 CIRC MUD_ SURCSG C/O MWD. Orient dir tools. Test MWD. OK. 11:00 - 11:30 0.50 TRIP_ BHA_ SURCSG RIH w/HWDP. 11:30 - 12:30 1.00 TRIP_ DP_ SURCSG P/U 5" DP while RIH. Total DP P/U for this section 100jnts. 12:30 - 13:00 0.50 CIRC_ MUD_ SURCSG Fill DP and tag @ 1443'. 13:00 - 14:00 1.00 DRILL_ CMT_ SURCSG Drill Float collar @ 1443' and shoe track and shoe @ 1525'. 14:00 - 14:30 0.50 DRILL_ ROT_ SURCSG Clean old hole to 1540'. 14:30 - 14:45 0.25 DRILL_ ROT_ SURCSG Drill 1540' to 1560' (ART=.5hrs). 14:45 - 15:00 0.25 CIRC_ MUD_ SURCSG Circ. clean. 15:00 - 16:00 1.00 CIRC_ MUD_ SURCSG Mix and pump spacer. Displace well to new 9.1 ppg flopro mud. 16:00 - 16:30 0.50 TEST_ LOT_ SURCSG Perform LOT to 14.1 ppg EMW - 9.1 ppg mud and 400psi. 16:30 - 06:00 13.50 DRILL_ ROT_ PR1 DRL Dir drill and survey F/1630' to 2725' (ART=4.85hrs AST=2.85hrs). 3/21/2006 06:00 - 15:30 9.50 DRILL_ ROT_ PR1 DRL Dir drill and survey F/2725' to 3564' (ART=2.9 AST= 2.3). 15:30 - 16:30 1.00 CIRC_ MUD_ PR1DRL Circ. clean (CBUX3, 1050psi, 80RPM). Observe well (1bph losses). Pump dry job. 16:30 - 17:30 1.00 TRIP_ WIPR PR1DRL POOH to shoe@1525'. Hole Slick, No Gain/ Loss 17:30 - 18:30 1.00 SERVIC EOIP PR1DRL Service Rig ,Top Drive, Blocks,Crown & Carrier 18:30 - 20:00 1.50 TRIP_ WIPR PR1 DRL TIH from 1525' to 3504'. Wash To Bottom from 3504' to 3564'. No Fluid Loss To Hole (Normal Seepage) 20:00 - 03:30 7.50 DRILL_ ROT_ PR1 DRL Dir Drill & Survey F- 3564' T- 4063' ART= 3.8 AST= 1.7. Fluid Loss To Hole Avg 25 bbls Per Hr. To 03:30am, Loss Increase To 60 bbls. 03:30 - 04:30 1,00 MIX_ LCM_ PR1 DRL P/U To 3800' Mix 50 bbl 100# ppb Safe Carb Pill. RIH Spot Pill At 4063' Pull Up To 3800'/ Mud Loss To Hole F-0330 T- 0430 168 bbls 04:30 - 06:00 1.50 MIX_ MUD_ PR1 DRL Build Mud Volume Monitor Well/ Loss To Hole 23 bbls from 0430 hr to 0500hr. Mix #2, 50 bbl 100# ppb Safe Carb Icm Pill. Spot @ 3800' Loss To Hole 46 bbl Per hr. 3/22/2006 06:00 - 08:00 2.00 MIX_ MUD_ PR1 DRL Build volume and observe well. Losses 306PH and decreased to 246PH. 08:00 - 09:00 1.00 PUMP_ LCM_ PR1 DRL Mix and pump LCM pill#3(2PP6 flovis w/100PPB/33/33/33 fine/med/course CaCo3). 09:00 - 11:00 2.00 MIX MUD_ PR1 DRL Mix mud and build volume in pits while observe well. Static losses 4BPH and increased to 206PH. 11:00 - 12:00 1.00 PUMP_ LCM_ PR1 DRL Mix and pump LCM pill#4(2PPB flovis w/100PP6/50/25/25 coarse/med/fine CaCo3). Bleed off valve was left open and pill was pumped down DP X CSG annulus. 12:00 - 13:00 1.00 PUMP_ LCM_ PR1 DRL Mix and pump LCM pill#5(2PP6 flovis w/100PPB/50/25/25 coarse/med/fine CaCo3). Lost 30bbls mud while spotting pill. 13:00 - 16:00 3.00 MIX_ MUD_ PR1 DRL Mix mud and build volume while obseve well. Static losses 4BPH and incresed to 166PH. /~ ^ I /1 i (~ (~ ~ Printed: 9/19/2006 7:50:33 AM • • Marathon Oi Company Page 4 ofi 4 Operations Summary Report Legal Well Name: KENAI UNIT 21-7X Common Well Name: KENAI UNIT 21-7X Spud Date: 3/11/2006 Event Name: ORIGINAL DRILLING Start: 3/10/2006 End: 3/25/2006 Contractor Name: GLACIER DRILLING Rig Release: Group: Rig Name: GLACIER DRILLING Rig Number: 1 Date. From - To Hours Cade Phase Description of Operations Code 3/22/2006 16:00 - 17:00 1.00 PUMP_ LCM_ PR1DRL Mix and pump LCM pill#6(1.25PP6 Flovis, 20PP6 Mix2-Med, 30PP6 50/50 Med/fine CaCo3). Lost 43bbls while pumping and displacing pill. 17:00 - 18:30 1.50 MIX_ MUD_ PR1 DRL Mix mud and build volume while obseve well. Static losses 18:30 - 20:30 2.00 MIX_ LCM_ PR1 DRL Mix LCM Pill # 7 / TIH To 4063' Spot Pill / POH To 3800'. Loss To Hole During Pumping 20bbls. Monitor Well. 8 bbl per Hr. Loss 20:30 - 21:00 0.50 TRIP_ DP_ PR1 DRL TIH T 4063' Fluid Loss To Hole 3 bbl 21:00 - 06:00 9.00 DRILL_ ROT_ PR1 DRL Dir Drill Survey F-4063 T- 4650' ART= 2.30 AST= 2.10 Fluid Loss To Hole 27 bbl per Hr.( Well Breathing) Flow Back Of 10 To 17bbls After Pumps Off. Net Loss To Hole 6 To 10 bbls per hr Max Gas 378 Units. Normal Torque and Drag On Connections 3/23/2006 06:00 - 13:00 7.00 DRILL_ ROT_ PR1DRL Drill ahead 8 1/2 hole dretnl 4650 - 5032 ft (TD). Conn's free, no drag / torque. 6 - 8 bph dynamic losses. AST = .7 hrs, ROT = 2.3 hrs 13:00 - 14:30 1.50 CIRC_ MUD_ PR1 DRL C/C mud, prepare for trip. 6 - 8 bph dynamic losses. Spot 50 bbl Mix 2 LCM. 14:30 - 15:30 1.00 TRIP_ DP_ PR1 DRL PJSM, flow check, 2 - 3 bph static loss, POH 3680 ft. No drag /swab. 15:30 - 16:00 0.50 CIRC_ MUD_ PR1DRL Pump wt pill. 16:00 - 18:00 2.00 TRIP_ DP_ PR1DRL POH 5" DP to BHA. 18:00 - 19:30 1.50 PULD_ BHA_ PR1 DRL Flow check, LD BHA /dretnl equip. 19:30 - 20:30 1.00 PULD_ BHA_ PR1 DRL MU 8 1/2 bit, RIH same. 20:30 - 21:00 0.50 TRIP_ DP_ PR1 DRL Flow check, follow BHA with 5" DP to shoe at 1500 ft. 21:00 - 21:30 0.50 SERVIC RIG_ PR1 DRL Service rig. 21:30 - 23:30 2.00 TRIP_ DP_ PR1 DRL Flow check, RIH 5" DP to 5032 ft. No do drag, no fill. 23:30 - 00:30 1.00 CIRC_ MUD_ PR1 DRL C/C mud, prepare for E-logs. Losses 3 - 5 bph. 00:30 - 03:30 3.00 TRIP_ DP_ PR1 DRL Flow check, POH 5" DP to surface. No drag /swab. Hole fill indicates 5 bph loss. 03:30 - 04:00 0.50 SERVIC RIG_ PR1DRL Service top drv. 04:00 - 05:00 1.00 RURD_ ELEC PR1EVL PJSM, RU E-log equip. 05:00 - 06:00 1.00 LOG_ OH_ PR1EVL Commence RIH E-logs, 4950 ft at 0600 hrs. Static losses 12 bph. 3/24/2006 06:00 - 12:00 6.00 LOG_ OH_ PR1 EVL RIH E-logs (Quad Combo), log well 5032 - 1200 ft Wireline depth 5032 ft, csg shoe 1525 ft. No fill /ledge / up drag. Static loss 10 bph. 12:00 - 13:00 1.00 WAITON ORDR PR1 EVL W/O evaluation MOC Houston while safety meet all personnel. 13:00 - 18:00 5.00 WAITON ORDR PR1 EVL Cont W/O evaluation. 18:00 - 19:00 1.00 RURD_ ELEC PR1 EVL Recieve orders MOC Houston, R/D wireline equip 19:00 - 22:00 3.00 TRIP_ DP_ PR1 EVL PJSM, flow check, RIH 5" DP 5032 ft for RFT no fill. 22:00 - 01:30 3.50 LOG_ OH_ PR1EVL Attempt RFT, tool failure 01:30 - 02:30 1.00 LOG_ OH_ PR1 EVL POH wireline, M/U new tool, surface test same. 02:30 - 03:00 0.50 LOG_ OH_ PR1 EVL RIH wireline RFT. 03:00 - 06:00 3.00 LOG_ OH_ PR1 EVL Commence RFT at 4790 ft. 3/25/2006 06:00 - 22:00 16.00 LOG_ OH_ PR1 EVL Flow check, PJSM, cunt RFT logs 4790 - 3635 ft No up drag /sticking. Static losses 8 - 10 bph. Panted: 9/19/2006 7:50:33 AM ORIGINAL • M arathon OiI Company Page 1 of 2 Operations Summary Report. Legal Well Name: KENAI UNIT 21-7X Common Well Name: KENAI UNIT 21-7X Spud Date: 3/11/2006 Event Name: ORIGINAL COM PLETION Start: 3/25/2006 End: 3/30/2006 Contractor Name: GLACIER DRILLING Rig Release: Group: Rig Name: GLACIER DRILLING Rig Number: 1 Date From - To Hours Code Code Phase Description of Operations 3/25/2006 22:00 - 00:00 2.00 TRIP_ DP_ PR1 CSG PJSM, POH 5" DP to BHA. Hole fill indicates 5 bph losses. 00:00 - 01:30 1.50 PULD_ BHA_ PR1CSG Flow check, MU 8 1/2 bit / HWDP, RIH same 01:30 - 02:00 0.50 TRIP_ DP_ PR1CSG Follow BHA with 5" DP to 1525 ft, attempt fill pipe, abnormal press, suspect washout. 02:00 - 03:00 1.00 TRIP_ DP_ PR1CSG PJSM, POH DP to BHA. Visual inspection all stands, nothing found. 03:00 - 04:00 1.00 TRIP_ DP_ PR1CSG PJSM, RIH 5" DP, pump all stands, no washout. 04:00 - 05:00 1.00 TRIP_ DP_ PRICSG Cont RIH 5032 ft, no do drag /fill. 05:00 - 06:00 1.00 CIRC_ MUD_ PR1 CSG Circ /cond fluids for 5 1/2 csg. Dynamic loss 7 bph. 3/26/2006 06:00 - 07:00 1.00 CIRC_ MUD_ PR1CSG Cont circ /cond fluids for 5 1/2 csg run. Spot LCM, pump wt pill, fluid column static. 07:00 - 12:00 5.00 PULD_ DP_ PR1CSG PJSM, flow check, (static), POH laying do 5" DP. Hole fill indicates 0 loss initially, 2-3 bph final. No up drag /swab 12:00 - 12:30 0.50 PULD_ BHA_ PR1CSG Flow check, LD BHA 12:30 - 13:00 0.50 RUNPU WBSH PR1CSG L/D wear bshg 13:00 - 14:00 1.00 CLEAN_ RIG_ PRICSG R/D floor, clear area for csg equip 14:00 - 14:30 0.50 TEST_ EOIP PR1CSG Trial run 5 1/2 hgr, mark Idg jt, record measurement 14:30 - 16:30 2.00 RURD_ CSG_ PRICSG PJSM, Place 5 1/2 csg run equip rig floor, RU same 16:30 - 04:00 11.50 RUN_ CSG_ PR1 CSG PJSM, MU shoe track (Guide shoe, 2 jts 5 1/2 L80 IBT, Ldg collar) test floats, flow check, function BOPE follow with jts 5 1/2 L80 IBT csg. Fill all jts, slow going due to possible losses. MU Idg jt, land hgr. UP 100K, Dn 80K. Shoe 5022.4 ft, Ldg collar 4939.8 ft, Stage Collar 3393.59 ft. No fill / do drag /bridge. Circ at 1500, 3400 ft. No losses. 04:00 - 05:00 1.00 CIRC_ MUD_ PR1CSG Flow check, 1 bph static loss, circ /cond fluids for cmt. 100 spm / 200 psi. 1 - 2 bph dynamic loss. 05:00 - 06:00 1.00 PUMP_ CMT_ PRICSG PJSM, commence cmt 5 1/2 csg: Pump 2 bbls H2o, test lines 4000 psi. Pump 30 bbls 10 ppg /MCS4 / cello flake sweep 3/27/2006 06:00 - 07:00 1.00 PUMP_ CMT_ PR1CSG Cont cmt 5 1/2 csg stage 1: Mix /pump cmt (260 sks, 101 bbls, "G" 13.5 ppg). Drop plug, confirm dropped. Displace with 5 bbls H2o, 110 bbls drill mud. Bump plug (0630 hrs) with 1500 psi / 5 min, bleed, floats holding. Build to 2900 psi, stage tool open. 07:00 - 12:30 5.50 CIRC_ MUD_ PRICSG Circ through stage tool 100 spm / 190 psi. Take cmt contaminated mud (9.9 ppg) to surface. No gain /losses. Cont circ while WO cmt. 12:30 - 13:30 1.00 PUMP_ CMT_ PR1CSG PJSM, cmt 5 1/2 csg, stage 2: Pump 2 bbls H2o, 30 bbls 10 ppg MCS4 sweep. Mix /pump 250 sks, 82 bbls "G" 12.7 ppg. Drop plug, confirm plug dropped. Displace with 5 bbls H2o / 75 bbls drill mud. Bump plug, build to 1500 psi (close stage tool), tool closed. Plug bumped, cmt in place 1325 hrs. 13:30 - 14:30 1.00 RURD_ CMT_ PR1CSG PJSM, RD cmt equip, release unit. 14:30 - 18:00 3.50 PULD_ DP_ PR1CSG PJSM, prepare floor, strap 2 7/8 DP. 18:00 - 19:30 1.50 PULD_ BHA_ PR1CSG MU 3 3/4 bit /drill out BHA, RIH same. 19:30 - 00:00 4.50 PULD_ DP_ PR1CSG Flow check, PU singles 2 7/8 DP to tag stage tool at 3393 ft. 00:00 - 00:30 0.50 DRILL_ CMT_ PR1CSG Drill stage tool 3393 - 3395 00:30 - 01:00 0.50 CIRC_ MUD_ PR1 CSG Flow check, circ /cond fluids, trace cmt to surface. 01:00 - 02:30 1.50 PULD_ DP_ PR1CSG RIH, PU 2 7/8 DP in singles to tag at 4939 ft. 02:30 - 04:30 2.00 CIRC_ MUD_ PR1CSG Circ /cond fluids, trace cmt /aluminum to surface. 04:30 - 06:00 1.50 TRIP_ DP_ PR1CSG PJSM, flow check, POH 2 7/8 DP for scraper 3530 ft at 0600 hrs. 3/28/2006 06:00 - 08:00 2.00 TRIP_ DP_ PR1CSG Cont POH 2 7/8 DP for scraper. 08:00 - 09:00 1.00 PULD BHA_ PR1CSG Flow check, Handle BHA, stand bk DCs Printed: 9/19/2006 7:50:45 AM • • Marathon Oi( Company Page 2 of 2 Operations Summary Report Legal Well Name: KENAI UNIT 21-7X Common Well Name: KENAI UNIT 21-7X Spud Date: 3/11/2006 Event Name: ORIGINAL COMPLETION Start: 3/25/2006 End: 3/30/2006 Contractor Name: GLACIER DRILLING Rig Release: Group: Rig Name: GLACIER DRILLING Rig Number: 1 Date From - To Wours Code Code Phase Description of Operations 3/28/2006 09:00 - 10:00 1.00 PULD_ BHA_ PR1CSG MU bit /scraper, RIH same. 10:00 - 14:30 4.50 TRIP_ DP_ PR1 CSG Follow BHA with 2 7/8 DP to tag at 4939 ft. No restriction / do drag at stage collar. 14:30 - 17:00 2.50 CIRC_ CFLD PR1 CSG PJSM, Pump hi-vis spacer, displace well to KCL brine. 17:00 - 22:00 5.00 TRIP_ DP_ PR1 CSG PJSM, POH scraper on 2 7/8 DP. 22:00 - 22:30 0.50 PULD_ BHA_ PR1 CSG LD BHA, break bit /scraper. 22:30 - 00:00 1.50 RURD_ CSG_ PR1 CSG PJSM, RD 2 7/8 handling equip, clear floor. 00:00 - 00:30 0.50 CHANG EQIP PR1CSG Change out saver sub to 4 1/2 IF 00:30 - 06:00 5.50 NUND BOPE PR1CSG PJSM, ND BOPE 3/29/2006 06:00 - 07:00 1.00 NUND BOPE PR1CSG Cont ND BOPE for tbg hd install. 07:00 - 09:00 2.00 NUND WLHD PR1CSG PJSM, Install 3 1/2 pkf, MU tbg hd, test primary /secondary /ring gskt / hgr neck seals to 5000 psi / 15 min. Test successful. Install BPV, confirm seated. MU Block off flg. 09:00 - 06:00 21.00 RURD_ RIG_ RDMO PJSM, commence rig do Glacier rig #1: Disconnect all elect /plumbing, break major units. Blow do lines, prepare mast /floor for scope dn. PJSM (Crane personnel), begin crane work. Power do camp, prepare for move. 3/30/2006 06:00 - 12:00 6.00 RURD_ RIG_ RDMO PJSM, cunt RD Glacier rig #1, for move to KU 11-8. All units / tubulars / BOPE /equip ready for load out. Glacier rig #1 released this date 1200 hrs. ORIGINAL Printed: 9/19/2006 7:50:45 AM Marathon Oil Company Operations Summary Report Page 1 of 1 Legal Well Name: KENAI UNIT 21-7X Common Well Name: KENAI UNIT 21-7X Spud Date: 3/11/2006 Event Name: ORIGINAL COMPLETION Start: 4/10/2006 End: Contractor Name: GLACIER DRILLING Rig Release: Group: Rig Name: GLACIER DRILLING I Rig Number: 1 Date ~ From - To `Hours Code Code I Phase ~ Description of Operations. 5/24/2006 08:00 - 09:00 1.00 SAFETY MTG_ XMBO Hold safety meeting, Issue permit. 09:00 - 14:00 5.00 RURD_ OTHR XMBO Remove dry hole tree and RU production tree with hanger spools for concentric completion 14:00 - 15:00 1.00 TEST_ TREE XMBO test tree to 5000 psi. Good. 15:00 - 16:00 1.00 RURD_ OTHR XMBO Rig down and leave location. 5/25/2006 09:00 - 09:30 0.50 SAFETY MTG_ WRLN Hold safety meeting, Issue permit. 09:30 - 10:20 0.83 RURD_ ELEC WRLN RU E-fine unit to run CBL. 10:20 - 10:45 0.42 TEST_ TREE WRLN RIH CBL. 10:45 - 13:00 2.25 WRLN Log free pipe at 1000'. Tag TD at 4930' ELMD. Log CBL from 4930' to 2400' 13:00 - 13:40 0.67 WRLN POH. 13:40 - 14:10 0.50 RURD_ OTHR WRLN Rig down and leave location. 8/17/2006 09:00 - 09:30 0.50 SAFETY MTG_ CMPFLW Hold safety meeting, Issue permit. 09:30 - 14:00 4.50 RURD_ COIL CMPFLW Spot and RU CT and flowback iron. 14:00 - 15:00 1.00 RURD_ COIL CMPFLW Perform full BOP test 250 / 4500 psi. 15:00 - 16:00 1.00 RURD_ COIL CMPFLW Rig back for night and leave location. 8/18/2006 07:30 - 08:00 0.50 RURD_ COIL CMPFLW Issue Permit. Start Equipment 08:00 - 08:30 0.50 SAFETY MTG_ CMPFLW Hold safety meeting. Discuss complete safety checklist. 08:30 - 09:00 0.50 RURD_ COIL CMPFLW Stab injector omn well. 09:00 - 09:21 0.35 RURD_ COIL CMPFLW Shell test BOP to 4000 psi. test N2 line to 3000 psi. 09:21 - 11:11 1.83 JET_ N2_ CMPFLW RIH CT. Start n2 down backside witrh returns to gas buster. 11:11 - 11:14 0.05 RUNPU COIL CMPFLW Close returns and tag TD at 4937' CTMD. PU to 4924'. 11:14 - 13:15 2.02 JET_ N2_ CMPFLW Reverse completion fluid from well. 13:15 - 13:30 0.25 JET_ N2_ CMPFLW SD N2 and observe pressure. 115 bbls returns to tank. 13:30 - 14:00 0.50 RUNPU COIL CMPFLW N2 around corner. POH CT while unloading CT. rtns = 121 bbls. 14:00 - 15:00 1.00 RURD_ COIL CMPFLW OOH. Rtns = 140 Bbls. Bleed down CT. Trapped 1300 psi on casing. 15:00 - 17:30 2.50 RURD_ COIL CMPFLW RD Ct and leave location. 9/2/2006 07:30 - 08:15 0.75 SAFETY MTG_ CMPFLW Issue Permit. Hold safety meeting. 08:15 - 12:25 4.17 RURD_ ELEC CMPFLW RU a-line unit and hardline to tank to blow down well. 12:25 - 13:00 0.58 RURD_ ELEC CMPFLW Blow well down from 1300 psi (N2 Pressure) to 250 psi. 13:00 - 13:15 0.25 SAFETY MTG_ CMPFLW Perforating safety meeting. 13:15 - 13:30 0.25 RURD_ ELEC CMPFLW Arm 10' X 3-3/8" gun to shoot 3756 - 66'. 13:30 - 14:00 0.50 RUNPU ELEC CMPFLW RIH and position gun #1 to shoot 3756' - 3766' open hole. Reduce surface pressure to 206 psi to shoot at 235 psi at pert depth. 14:00 - 14:05 0.08 PERF_ CSG_ CMPFLW Shoot 3756' - 3766' open hole. (3754' - 3764' CBL) 14:05 - 14:25 0.33 RUNPU ELEC CMPFLW POH 14:25 - 14:40 0.25 RURD_ ELEC CMPFLW LD spent gun and PU P/T tools. 14:40 - 14:45 0.08 LOG_ OTHR CMPFLW Record SI surface pressure /Temp for 5 min. P dropped from 173 psia to 171 psia in 5 minutes. T = 78 14:45 - 15:15 0.50 RUNPU ELEC CMPFLW RIH P/T tools and position at 3760' MDCBL. 15:15 - 15:49 0.57 LOG_ OTHR CMPFLW Record pressure /Temp at 3760' MD CBL. Starting P = 188 psia, 86 degF. Final P = 183 psia, 91 degF. 15:49 - 16:05 0.27 RUNPU ELEC CMPFLW POH Surface P/T = 158 psia and 62 degF. 16:05 - 16:20 0.25 RURD_ ELEC CMPFLW LD P/T tools and PU gun #2. 16:20 - 16:57 0.62 PERF_ CSG_ CMPFLW RIH gun #2 and reduce p from 141 psig to 125 psig to shoot 10 psi underbalanced. Shoot 3723' - 3740' ELMD with 3-3/8" gun. Immediate increase in pressure. 16:57 - 17:15 0.30 RUNPU ELEC CMPFLW OOH LD spent gun. SIWHP = 145 psig. 17:15 - 18:00 0.75 RURD_ ELEC CMPFLW RD Expro and leave location. Printed: 9/19/2006 7:48:35 AM ,..... ...-_.. r-- ~~ Company: Marathon Oil Company Field: Kenai Gas Field Borough Kenai Peninsula [tWTEQ Well Name: KU21-7X Rig: Glacier#1 Job Number: Magnetic Decl.: Grid Corr.: Total Survey Corr.: 1080001 Calculation Method: 19.58° Proposed Azimuth: n/a Depth Reference: 19.58° Tie Into: Surface Minimum Curvature 107.81° RKB M MARATHON No. Tooi Type Survey MD Incl INCL Azimuth TVD AZIM TVD SSTVD Course Lgth (ft) VS ft) Coord N/S (ft) inates E/VH (ft) Closure Dist (ft Ang (°) DLS (°/100') Build Rate (°/100') Walk Rate (°/100') Tool Face 1 Tie in 0 0.0 0.0 0.00 -87.25 0.00 0.00 N 0.00 E 2 MWD 193 0.3 247.3 193.00 105.75 193 -0.38 0.19 S 0.47 W 0.51 247.30 0.16 0.16 128.13 3 MWD 319 0.1 34.3 319.00 231.75 126 -0.60 0.23 S 0.71 W 0.75 251.91 0.31 -0.16 -169.05 172 R 4 MWD 440 0.2 307.2 440.00 352.75 121 -0.77 0.02 S 0.82 W 0.82 268.84 0.18 0.08 225.54 114 L 5 MWD 561 0.4 293.4 561.00 473.75 121 -1.39 0.28 N 1.37 W 1.40 281.48 0.17 0.17 -11.40 27 L 6 MWD 682 0.7 293.8 681.99 594.74 121 -2,55 0.74 N 2.44 W 2.55 287.00 0.25 0.25 0.33 1 R 7 MWD 804 0.9 295.0 803.98 716.73 122 -4.24 1.45 N 3.99 W 4.24 289.99 0.16 0.16 0.98 5 R 8 MWD 930 1.2 302.7 929.96 842.71 126 -6,50 2.58 N 5.99 W 6.53 293.30 0.26 0.24 6.11 29 R 9 MWD 1054 1.5 301.1 1053.92 966.67 124 -9.33 4.12 N 8.48 W 9.43 295.93 0.24 0.24 -1.29 8 L 10 MWD 1178 0.7 311.8 1177.90 1090.65 124 -11.60 5.46 N 10.43 W 11.78 297.65 0.66 -0.65 8.63 171 R 11 MWD 1305 0.8 310.1 1304.89 1217.64 127 -13.13 6.55 N 11.69 W 13.40 299.28 0.08 0.08 -1.34 13 L 12 MWD 1482 0.7 320.0 1481.87 1394.62 177 -15.19 8.18 N 13.33 W 15.64 301.53 0.09 -0.06 5.59 133 R 13 MWD 1557 0.6 327.0 1556.87 1469.62 75 -15.88 8.86 N 13.84 W 16.43 302.63 0.17 -0.13 9.33 145 R 14 MWD 1683 0.6 345.9 1682.86 1595.61 126 -16.74 10.05 N 14.36 W 17.52 304.99 0.16 0.00 15.00 99 R 15 MWD 1744 0.6 353.5 1743.86 1656.61 61 -17.04 10.68 N 14.47 W 17.98 306.42 0.13 0.00 12.46 0 16 MWD 1807 1.5 52.5 1806.85 1719.60 63 -16.71 11.51 N 13.85 W 18.01 309.71 2.06 1.43 -477.78 82 R 17 MWD 1871 4.4 70.6 1870.76 1783.51 64 -14.28 12.83 N 10.87 W 16.82 319.73 4.70 4.53 28.28 27 R 18 MWD 1934 5.4 73.8 1933.53 1846.28 63 -9,89 14.46 N 5.75 W 15.56 338.33 1.64 1.59 5.08 17 R 19 MWD 1998 5.7 72.9 1997.23 1909.98 64 -4.79 16.24 N 0.18 E 16.24 0.65 0.49 0.47 -1.41 17 L 20 MWD 2061 6.8 76.9 2059.85 1972.60 63 0.97 18.00 N 6.81 E 19.25 20.71 1.88 1.75 6.35 24 R 21 MWD 2124 7.8 82.0 2122.34 2035.09 63 8,02 19.44 N 14.67 E 24.36 37.04 1.89 1.59 8.10 35 R 22 MWD 2187 9.5 84.7 2184.62 2097.37 63 16.65 20.52 N 24.08 E 31.64 49.57 2.77 2.70 4.29 15 R 23 MWD 2250 11.3 85.8 2246.58 2159.33 63 27.16 21.45 N 35.42 E 41.41 58.80 2.87 2.86 1.75 7 R 24 MWD 2313 13.5 88.0 2308.11 2220.86 63 39.80 22.16 N 48.92 E 53.71 65.63 3.57 3.49 3.49 13 R 25 MWD 2377 15.1 88.9 2370.13 2282.88 64 54.72 22.58 N 64.73 E 68.55 70.77 2.52 2.50 1.41 8 R 26 MWD 2440 16.5 88.6 2430.74 2343.49 63 70.93 22.96 N 81.87 E 85.03 74.34 2.23 2.22 -0.48 3 L 27 MWD 2503 18.0 88.6 2490.91 2403.66 63 88.57 23.41 N 100.55 E 103.24 76.89 2.38 2.38 0.00 0 L 28 MWD 2567 19.6 88.2 2551.49 2464.24 64 108.02 23.99 N 121.17 E 123.52 78.80 2.51 2.50 -0.62 5 L 29 MWD 2631 20.9 87.5 2611.54 2524.29 64 128.84 24.83 N 143.30 E 145.44 80.17 2.07 2.03 -1.09 11 L 30 MWD 2694 21.3 84.9 2670.31 2583.06 63 149.92 26.33 N 165.93 E 168.00 80.98 1.62 0.63 -4.13 68 L 31 MWD 2757 21.9 82.3 2728.89 2641.64 63 171.06 28.93 N 188.97 E 191.17 81.30 1.79 0.95 -4.13 59 L 32 MWD 2820 22.9 81.4 2787.14 2699.89 63 192.65 32.33 N 212.73 E 215.17 81.36 1.68 1.59 -1.43 19 L 33 MWD 2883 24.0 81.1 2844.93 2757.68 63 215.07 36.15 N 237.51 E 240.24 81.35 1.76 1.75 -0.48 6 L 34 MWD 2946 24.8 82.4 2902.30 2815.05 63 238.45 39.88 N 263.26 E 266.27 81.39 1.53 1.27 2.06 34 R _~ 1 of 2 O A z n r ~~ Company: Marathon Oil Company Field: Kenai Gas Field Borough Kenai Peninsula tHTEQ Well Name: KU21-7X Rig: Glacier#1 Job Number: Magnetic Decl.: Grid Corr.: Total Survey Corr.: 1080001 Calculation Method: Minimum Curvature 19.58° Proposed Azimuth: 107.81° n/a Depth Reference: RKB 19.58° Tie Into: Surface MaearxoN No. Tool Type Survey MD Incl INCL Azimuth TVD AZIM TVD SSTVD Course Lgth (ft) VS (ft) Coord N/S ft inates ENV (ft) Closure Dist (ft) Ang ° DLS °/100') Build Rate (°/100') Walk Rate (°/100') Tool Face 35 MWD 3009 25.4 84.7 2959.36 2872.11 63 262.81 42.87 N 289.81 E 292.97 81.59 1.82 0.95 3.65 59 R 36 MWD 3072 25.6 88.4 3016.22 2928.97 63 288.08 44.50 N 316.88 E 319.99 82.01 2.55 0.32 5.87 85 R 37 MWD 3135 26.4 91.8 3072.85 2985.60 63 314.38 44.44 N 344.48 E 347.34 82.65 2.68 1.27 5.40 63 R 38 MWD 3199 26.4 95.4 3130.18 3042.93 64 341.95 42.66 N 372.87 E 375.30 83.47 2.50 0.00 5.63 92 R 39 MWD 3262 25.9 99.1 3186.73 3099.48 63 369.24 39.16 N 400.40 E 402.31 84.41 2.71 -0.79 5.87 109 R 40 MWD 3325 24.4 102.2 3243.76 3156.51 63 395.79 34.23 N 426.71 E 428.08 85.41 3.17 -2.38 4.92 140 R 41 MWD 3388 23.4 105.5 3301.36 3214.11 63 421.24 28.14 N 451.49 E 452.36 86.43 2.65 -1.59 5.24 128 R 42 MWD 3452 22.6 109.1 3360.28 3273.03 64 446.24 20.72 N 475.35 E 475.81 87.50 2.53 -1.25 5.62 121 R 43 MWD 3514 21.9 114.3 3417.67 3330.42 62 469.64 12.06 N 497.15 E 497.30 88.61 3.37 -1.13 8.39 112 R 44 MWD 3575 21.4 119.5 3474.37 3387.12 61 491.84 1.90 N 517.21 E 517.21 89.79 3.25 -0.82 8.52 107 R 45 MWD 3639 20.0 124.0 3534.24 3446.99 64 513.79 9.97 S 536.45 E 536.54 91.06 3.31 -2.99 7.03 133 R 46 MWD 3702 19.2 126.4 3593.59 3506.34 63 533.95 22.14 S 553.72 E 554.16 92.29 1.80 -1.27 3.81 136 R 47 MWD 3765 18.9 127.1 3653.14 3565.89 63 553.40 34.45 S 570.19 E 571.23 93.46 0.60 -0.48 1.11 143 R 48 MWD 3828 18.9 126.6 3712.74 3625.49 63 572.69 46.68 S 586.52 E 588.38 94.55 0.26 0,00 -0.79 90 L 49 MWD 3891 18.7 126.6 3772.38 3685.13 63 591.91 58.79 S 602.82 E 605.68 95.57 0.32 -0.32 0.00 0 50 MWD 3954 18.8 131.4 3832.04 3744.79 63 610.78 71.52 S 618.55 E 622.67 96.60 2.45 0.16 7.62 89 R 51 MWD 4016 19.3 138.2 3890.65 3803.40 62 628.78 85.77 S 632.87 E 638.66 97.72 3.67 0.81 10.97 81 R 52 MWD 4081 19.2 140.0 3952.02 3864.77 65 647.09 101.97 S 646.90 E 654.89 98.96 0.93 -0.15 2.77 100 R 53 MWD 4142 18.7 143.1 4009.71 3922.46 61 663.56 117.47 S 659.22 E 669.60 100.10 1.84 -0.82 5.08 118 R 54 MWD 4206 17.5 144.0 4070.55 3983.30 64 679.70 133.46 S 671.04 E 684.18 101.25 1.93 -1.88 1.41 167 R 55 MWD 4270 15.8 144.9 4131.86 4044.61 64 694.42 148.37 S 681.70 E 697.66 102.28 2.69 -2.66 1.41 172 R 56 MWD 4333 14.0 147.3 4192.74 4105.49 63 707.14 161.81 S 690.75 E 709.45 103.18 3.02 -2.86 3.81 162 R 57 MWD 4397 12.7 152.0 4255.01 4167.76 64 718.16 174.53 S 698.24 E 719.72 104.03 2.64 -2.03 7.34 142 R 58 MWD 4461 11.1 156.5 4317.64 4230.39 64 727.27 186.39 S 704.00 E 728.26 104.83 2.89 -2.50 7.03 152 R 59 MWD 4524 9.1 159.1 4379.66 4292.41 63 734.39 196.61 S 708.19 E 734.98 105.52 3.26 -3.17 4.13 168 R 60 MWD 4587 8.0 158.7 4441.96 4354.71 63 740.27 205.35 S 711.56 E 740.60 106.10 1.75 -1.75 -0.63 177 L 61 MWD 4651 7.0 156.8 4505.41 4418.16 64 745.64 213.08 S 714.72 E 745.81 106.60 1.61 -1.56 -2.97 167 L 62 MWD 4714 5.1 154.4 4568.05 4480.80 63 750.08 219.14 S 717.44 E 750.16 106.99 3.04 -3.02 -3.81 174 L 63 MWD 4778 5.1 154.3 4631.80 4544.55 64 754.00 224.27 S 719.90 E 754.03 107.30 0.01 0.00 -0.16 90 L 64 MWD 4904 4.9 154.6 4757.32 4670.07 126 761.54 234.17 S 724.64 E 761.54 107.91 0.16 -0.16 0.24 173 R 65 MWD 4986 4.8 155.1 4839.03 4751.78 82 766.26 240.45 S 727.59 E 766.29 108.29 0.13 -0.12 0.61 157 R 66 Proj. 5032 4,8 155.1 4884.87 4797.62 46 768.87 243.94 S 729.21 E 768.93 108.50 0.00 0.00 0.00 D 2of2 ~ , ,~ ~ P { .=~y ~ ALASSA OIL A1~TD GAS COI~TSERQATIOI~T COrII~iISSIOI~T Willard Tank Advanced Senior Drilling Engineer Marathon Oil Company PO Box 3128 Houston, TX 77253 • FRANK H. MURKOWSKi, GOVERNOR 333 W. T" AVENUE, SUITE 100 ANCHORAGE, ALASKA 99501-3539 PHONE (907) 279-1433 FAX (907) 276-7542 Re: Kenai Gas Field, KU 21-7X Marathon Oil Company Permit No: 206-029 Surface Location: 484' FSL, 1330' FWL, SEC. 6, T4N, R11W, S.M. Bottomhole Location: 133' FNL, 2273' FWL, SEC. 7, T4N, Rl 1W, S.M. Dear Mr. Tank: Enclosed is the approved application for permit to drill the above referenced development well. This permit to drill does not exempt you from obtaining additional permits or an approval required by law from other governmental agencies and does not authorize conducting drilling operations until all other required permits and approvals have been issued. In addition, the Commission reserves the right to withdraw the permit in the event it was erroneously issued. Operations must be conducted in accordance with AS 31.0.5 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)fa59-3607 (pager). Chairman DATED this?3day of February, 2006 cc: Department of Fish 8v Game, Habitat Section w/o encl. Department of Environmental Conservation w/o encl. M Marathon MARATHON Oil Company February 15, 2006 John Norman Commissioner State of Alaska Alaska Oil & Gas Conservation Commission 333 West 7th Ave, Suite 100 Anchorage, AK 99501 Reference: Drilling Permit Application Field: Kenai Gas Field Well: KU 21-7X Dear Mr. Norman Worldwide Drilling North America P.O. Box 3128 Houston, TX 77253-3128 Telephone 713-629-6600 Fax 713-499-6737 RE~~1~~~ DEB 2 2 ZUi~b 'p~ska Oil & G cn o~~~ommissian An Enclosed please find the PERMIT TO DRILL application, along with the associated attachments and filing fee of $100. The intent is to drill a well in the Sterling Pool in the Kenai Gas Field. No completion is desired in the Beluga pool. r` Please note that Marathon is requesting a waiver for 20 ACC 25.035 (c) (1) (b) requiring the vent line to be as large as the hole drilled. The request is specified on page 12 of the attached drilling prognosis. If you require further information, I can be reached at 713-296-3273 or by a-mail at wjtankC marathonoil.com. Sincerely, :~~~~~ Willard J. Tank Advanced Senior Drilling Engineer Enclosures STATE OF ALASKA ALA.. OIL AND GAS CONSERVATION COM LION PERMIT TO DRILL 20 AAC 25.005 wGh- LI L~ ~ t-oo4 R~~~f V,~p DEB 2 2 2006 1a. Type of Work: Drill ^ Redrill ^ Re-entry ^ 1b. Current Well Class: Exploratory Stratigraphic Test ^ Service ^ Multiple Zone 0 Development Oil Development Gas ^ Single Zone ^ 1c. Specify if well is pr j~ Coalbed Methane ^ G~a G8S ra~esS~ t_.J -"'s ~~i~ora~e Shale Gas ^ _ 2. Operator Name: Marathon Oil Company 5. Bond: Blanket Q Single Well ^ Bond No. 5194234 11. Well Name and Number: KU 21-7X 3. Address: P.O. Box 3128, Houston, TX 77253 6. Proposed Depth: MD: 5,167 TVD: 4,887 12. Field/Pool(s): Kenai Gas Field 4a. Location of Well (Governmental Section): Surface: 484' FSL, 1,330' FWL, Sec. 6, T4N, R11W, S.M. ~ 7. Property Designation: A-028142 Sterling Pool i" Top of Productive Horizon: 56' FSL, 1,984' FWL, Sec. 6, T4N, R11W, S.M. 8. Land Use Permit: 13. Approxi a Spud Date: Marc 1, 06 Total Depth: 133' FNL, 2,273' FWL, Sec. 7, T4N, R11 W, S.M. ~ 9. Acres in Property: 2,560 14. Dista to Nearest Property: 1,865 ft 4b. Location of Well (State Base Plane Coordinates): Surface: x - 272,250.76 y - 2,362,523.31 Zone - 4 10. KB Elevation (Height above GL): (21' AGL) 87 feet 15. Distance to Nearest Well Within Pool: 475 ft to KU 21-7 16. Deviated wells: Kickoff depth: 1,804 feet Maximum Hole Angle: 35 degrees 17. Maximum Anticipated Pressures. in psig (see Downhole: 381 Surface: A ~ 25.035) 0 18. Casing Program: Specifications To p -Setting Depth -Bottom Cement Quantity, c.f. or sacks Hole Casing Weight Grade Coupling Length MD TVD MD TVD (including stage data) Driven 13 3/8" 68 L-80 PE 106' 0' 0' 127' 127' 12 1 /4" 9 5/8" 40 L-80 BTC 1,479' 0' 0' 1,500' 1,500' 347 sacks 8 1/2" 5 1/2" 17 L-80 BTC 5,146' 0' 0' 5,167' 4,887' 473 sacks /" 19. PRESENT WELL CONDITION SUMMARY (To be completed for Redrill and Re-Entry O perations) 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 ND Conductor/Structural Surface Intermediate Production Liner Perforation Depth MD (ft): Perforation Depth TVD (ft): 20. Attachments: Filing Fee 0 BOP Sketch Q Drilling Program Q Time v. Depth Plot ^ Property Plat 0 Diverter Sketch Q Seabed Report ^ Drilling Fluid Program Q Shallow Hazard Analysis ^ 20 AAC 25.050 requirements ^ 21. Verbal Approval: Commission Representative: 22. I hereby certify that the foregoing is true and correct. Printed Name Willard J. Tank Signature Date Contact Title Advanced Senior Drilling Engineer Phone 713-296-3273 Date ebruary 15, 2006 Commission Use Only Permit to Drill Number: Zp •. d API Number: rp 50-133 ~ ~~ J O Permit Approval Date: a 6 See cover letter for other requirements. Conditions of approval : If box is checked, well may not be used to explore for, test, or produce Coalbed methane, gas hydrates, or gas contained in shales:^ Other: -r"G S ~ ~~ ~ ~ ~ ZDOO rC'~' . Samples req'd: Yes^ No~ Mud log req'd: Ye No~ Y'~ Z~ d_~ ~ X5.0 ~' / ~ ~ ~Z~ t 0.~~~~~C , ~S measures: Yes^ Nom Directional svy req'd: Yes No ~I' ,T l ~1! ter v e~l~ l i c~-e/-i s w ~e d. ROVED BY THE COMMISSION DATE: ~ ~ ~ i0 ,COMMISSIONER ~~ Form 10-401 Revised 12/2005 # [ R ~ ~ ., ~ ~ ~ ~ ~~ ~,,,~ Submit in Duplicate • • / 1 MARATHON MARATHON OIL COMPANY DRILLING PROGRAM Kenai Gas Field KU 21-7X Original 2/15/06 Originator: W.J. Tank Drilling Superintendent: P.K. Berga North America Drilling Manager: B.J. Roy Page 1 of 13 • • Table of Contents General Well Data ...................................................................................................................................................................3 Geologic Program Summary ......................... ..........................................................................................................................3 Summary of Potential Drilling Hazards .......... . ..........................................................................................................................4 Formation Evaluation Summary .................... ..........................................................................................................................4 Drilling Program Summary ............................ ..........................................................................................................................5 Casing Program ............................................. ..........................................................................................................................6 Casing Design ............................................... ..........................................................................................................................6 Maximum Anticipated Surtace Pressure ....... ..........................................................................................................................6 BOPE Program .............................................. ..........................................................................................................................8 Wellhead Equipment Summary .................... ..........................................................................................................................9 Directional Program Summary ...................... ..........................................................................................................................9 Directional Surveying Summary .................... ........................................................................................................................10 Drilling Fluid Program Summary ................... ........................................................................................................................10 Drilling Fluid Specifications ............................ ........................................................................................................................11 Solids Control Equipment .............................. ........................................................................................................................11 Cement Program Summary ........................... ........................................................................................................................12 Regulatory Waivers and Special Procedures ........................................................................................................................12 Bit Summary .................................................. ........................................................................................................................13 Hydraulics Summary ..................................... ........................................................................................................................13 Formation Integrity Test Procedure ............... ........................................................................................................................13 Page 2 of 13 • • General Well Data Well Name. KBU 21-7X Lease/License Surface Location 484' FSL, 1,330' FW L, Sec. 6, T4N, R11W, S.M. ~ WBS Code DD.06.13353.CAP.DRL Slot/Pad Pad 14-6 Field Kenai Gas Field Spud Date 3/1/06 (est.) KB Elev.. 87 County/Province Kenai Peninsula API No, Ground Level Elev. 66 State /Country Alaska Well Class Development Perm. Datum KB Total MD 5,167 Rig Contractor Glacier Drilling Water Depth N/A Total TVD 4,887 Rig Name #1 Water Protection Depth Comments: Geologic Proctram Summary formation MD -RKB (ft) TVD -RKB (ft) Pore Pressure (psi) Pore Pressure. (p ) ~ Lithology Possible Fluid. Content Sterling A-8 (Primary Target) 3,731 3,522 0.8 - 6.5 Sandstone Gas Sterling B-1 (Secondary Target) 3,982 3,737 0.8 - 6.5 Sandstone Gas Sterling B-3 (Secondary Target) 4,126 3,867 0.8 - 6.5 Sandstone Gas Sterling B-5 (Secondary Target) 4,397 4,123 0.8 - 6.5 Sandstone Gas Sterling C-1 (Secondary Target) 4,697 4,417 0.8 - 6.5 Sandstone Gas Beluga (Not a Prod Target) 4,967 4,687 0.8 - 6.5 Sandstone Gas Comments: Surface Location Coordinates From Lease/Block Lines 484' FSL, 1,330' FWL, Sec. 6, T4N, R11W, S.M. ~ Latitude 60° 27' 38.787" N Longitude 151 ° 15' 42.359" W UTM North (Y) 2,362,523.31' UTM East (x) 272,250.76' Tolerance Depth Horizontal. Displacement (ft) Directional Target MD (ft) TVD (ft) Location +N/-S _(Y) +E/-W (X) Tolerance (ft) Sterling A-8 3,731 3,522 56' FSL, 1,984' FWL, Sec. 6, T4N, R11 W, S.M. -428 654 Circle 150' radius Sterling B-3 4,126 3,867 49' FNL, 2,145' FWL, Sec. 7, T4N, R11W, S.M. -533 815 Circle 150' radius TD 5,167 4,887 133' FNL, 2,273' FWL, Sec. 7, T4N, R11W, S.M. ~ -617 943 Circle 150' radius Comments: Page 3 of 13 • • Summarv of Potential Drilling Hazards Hazard Event Discussion Lost Circulation in Low Pressure Sterling and Belu a sands Control losses by using sufficiently sized calcium carbonate type LCM. Comments: Potential Hazards Statement To comply with state regulations the Potential Hazards section and the well shut-in procedures must be posted in the drillers dog house. The man on the brake (driller or relief driller) is responsible for shutting the well in (BOPE or diverter as applicable) as soon as warning signs of a kick are detected and an influx is suspected or confirmed. A copy of the approved permit to drill must be kept on location and be readily available to the AOGCC or BLM inspector. This well's primary objective is gas and no oil sands are expected to be encountered. No H2S is anticipated. Gas sands will be encountered from +/- 3,731 MD (3,522' TVD) to total depth of the well. These sands will run from highly ~,~- depleted to slightly below normal pressure. Lost circulation and differential sticking are potential hazards in some of the Sterling and Beluga sands. The Flo-Pro mud system that will be used to drill the well will help reduce these risks and lost circulation materials will be on location. Weighting material will available on location for proper well control.. Formation Evaluation Summarv Interval LWD Electric Logs Mud Logs Surface None None None 0' - 1,500' MD Production None Reeves Quad Combo with pressures Basic with GCA, shale density, temperature in and out, 1,500' - 5,167' MD through pipe. Pull GR-Neutron to tie into sample collection (10' samples). Intermediate run. Completion N/A GR, CCL N/A Coring Requirements: None. Comments: Page 4 of 13 • Drilling Program Summary CONDUCTOR: • 1. Drive 13 3/8" conductor to +/-130 ft. RKB. 2. Move in and rig up rotary drilling rig. 3. Install 13 3/8" slip lock connection X 13 5/8" 5M flanged multibowl wellhead. 4. Nipple up 13 5/8", 5M diverter spool, 11" diverter valve, and 16" diverter line. ~ 5. On top of the diverter, NU 13 5/8" 5M BOP's. Function test diverter and diverter valve. Test BOP's and choke manifold to 250/2,000 psi. ~ 6. Set wear bushing. SURFACE: 1. Drill a 12 1/4" hole to 1,500' MD (1,500' TVD). 2. At TD circulate hole clean. Make wiper trip. TOOH. 3. Change out variable pipe rams with 9 5/8" casing rams. Run test plug and test casing rams to 2,000 psi. ~ 4. Run and cement 9 5/8" casing. Land hanger in multibowl wellhead. 5. Back out landing joint. Blind flange the diverter spool. 6. Change out 9 5/8" casing rams with variable pipe rams. Run test plug and test rams to 250/2,000 psi. / 7. Set wear bushing. Test casing to 2,000 psi. PRODUCTION: 1. Drill float equipment and 20' of new formation w/ 8 1 /2" bit. CBU. 2. Test shoe to leak off. Estimated EMW 13.0 ppg. 3. Drill 8 1/2" hole to approximately 5,167' MD (4,887' TVD) per the directional program, short tripping as necessary (1,000' or 24 i hours, but can be extended depending on hole conditions). 4. At TD circulate hole clean. Make wiper trip. TOOH. 5. RU Precision. Run open hole logs as per plan. RD logging company. 6. TIH w/ 8 1/2" bit to TD for wiper trip. TOOH and lay down BHA and drill pipe. Pull wear bushing. / 7. RU and run 5 1/2" casing string. 8. Cement 5 1/2" casing while reciprocating. Land hanger in multibowl wellhead. Bump plug with 500 psi over displacement pressure. 9. ND BOP. Back out landing joint. Set 5 1/2" packoff. NU 13 5/8" 5M X 7" 5M tubing head and dry hole flange. Test tubing ~ head to 5,000 psi. 10. Rig down and move out drilling rig. Note: Drill all hole sections with 5" drillpipe. This well will have coiled tubing hangers and a tree added above the 7" tubing head after the rig has moved. COMPLETION: Completion will be done without a rig. The well will be perforated and coil will be used to run the completion strings. ~ Page 5 of 13 • Casing Program • MD (ft) Connection API Ratings Casing Makeup _ o: g Size Weight / O. D. Torque Hole Size m' g o ~' m (in) Top Bottom (Ibs/ft) Grade Type ~ (in) (ft-Ibs) {in) U ~ 9 5/8 Surface 1,500 40 L-80 BTC 10.625 N/A * 12 1/4 5,750 3,090 979 5 1/2 Surface 5,167 17 L-80 BTC 6.050 N/A * 8 1/2 7,740 6,280 397 Comments: * The make up of the buttress connection will be to the proper mark. Casing Design Casing Shoe Safety Factors. Casing Setting Mud Wt Frac. Form Maximum Surface w ~, o Size Weight Depth When Set Grad Press Pressure m (in) (Ib/ft) Grade (TVD) (Ib/gal) (Ib/gal) (Ib/gal) (psi) 9 5/8 40 L-80 1,500 9.2 15.0 8.4 0 3.67 4.31 6.07 51/2 17 L-80 4,887 9.2 13.0 1.5 0 2.12 2.69 2.32 Comments: Maximum Anticipated Surface Pressure Setting Depth Casing.. Size TVD MAWP * MASP ** ~ Mud/Gas (in) (ft) (psi) (psi) Ratio 9 5/8 1,500 3,955 0 0/100 51/2 4,887 5,418 0 0/100 * MAWP =Maximum allowable working pressure *" MASP =Maximum anticipated surface pressure Comments: i Page 6 of 13 • • MASP /MAWP CALCULATIONS: Surface casing: 9 5/8" (1,500' MD, 1,500' TVD) MASPfrac =((Fracture gradient at shoe + S.F.) x .052 x TVDsn~) -Hydrostatic pressure of gas column at the shoe. MASPfrac = (15.0 ppg + 0.5 ppg) x .052 x 1,500' - (.1 psi/ft x 1,500') MASPfrac = 1,209 psi - 150 psi MASPfrac = 1,059 psi. MASPbnp = BHPopen nae to -Hydrostatic pressure of a gas column MASPbnp = (1.5 ppg x .052 x 4,887') - (0.1 psi/ft x 4,887') MASPbnp = 381 psi - 489 psi MASPbnp ~.0'psi (((o ~ MASP = MASPbf,p = 0 psi MAW P = (0.7 x Casing Burst) - (Mud Wt. -Backup Fluid Wt.) x .052 x TVD MAW P = (0.7 x 5,750) - (9.2 - 8.3) x .052 x 1,500' MAW P = 4,025 psi - 70 psi = 3,955 psi Production casing: 5 1/2" (5,167' MD, 4,887' TVD) MASPfrac =((Fracture gradient at shoe + S.F.) x .052 x TVDsn~) -Hydrostatic pressure of gas column at the shoe. MASPfrac = (13.0 ppg + 0.5 ppg) x .052 x 4,887' - (.1 psi/ft x 4,887') MASPfrac = 3,431 psi - 489 psi MASPfrac = 2,942 psi. MASPbnp = BHPcpa„ nae to -Hydrostatic pressure of a gas column MASPbnp = (1.5 ppg x .052 x 4,887') - (0.1 psi/ft x 4,887') MASPbnp = 381 psi - 489 psi MASPbnp =~S1 I ~ ~0 7j MASP =MASPbnp = 0 psi MAWP = (0.7 x Casing Burst) - (Mud Wt. -Backup Fluid Wt.) x .052 x TVD MAW P = (0.7 x 7,740) - (9.2 - 9.2) x .052 x 4,887' MAW P = 5,418 psi - 0 psi = 5,418 psi Page 7 of 13 • • BOPE Program Casing Test Test Casing Test Fluid Pressure Size MAWP MASP press Density BOPS LowMigh Casing (in) (psi) (Psi) (psi) (Ib/ I) Size & Rating {psi) (1) 13-5/8" 5M annular (1) 13-5/8" 5M pipe ram Surface 9 5/8 3,955 0 2,000 9.2 (1) 13 5/8" 5M blind ram 250/2,000 ~ (1) 13-5/8" 5M drilling spool with 3-1/8" 5M outlets (1) 13-5/8" 5M annular (1) 13-5/8" 5M pipe ram Production 5 1/2 5,418 0 2,000 9.2 (1) 13 5/8" 5M blind ram 250/2,000 (1) 13-5/8" 5M drilling spool with 3-1/8" 5M outlets Comments: Blowout Preventers The blowout preventer stack will consist of a 13-5/8" x 5000 psi annular preventer, a 13-5/8" x 5000 psi double gate ram type preventer with blind rams in the bottom and pipe rams in the top and a 13-5/8" x 5000 psi drilling spool (mud cross) with 3-1/8" x 5000 psi outlets. A diverter spool will be placed below the blowout preventer and the annular will be used with the diverter valve during surface drilling operations. After the surface hole is completed, the diverter spool outlet will be blind flanged, but the spool will be left in the stack. This is due to the need to use a 13 3/8" available well head, set on the 13 3/8" conductor. The choke manifold will be rated 3-1/8" x 5000 psi. It will include a remote hydraulic actuated choke and a hand adjustable choke. Also included is a poor-boy gas buster, and avacuum-type degasser. A flow sensor will be installed in the flowline and the mud pits will contain sensors to measure the volume of fluid in the surface mud system. Both sensors will contain readouts convenient to the drillers console. Casing Test Pressures Casing test pressures are based on the lesser of (1) MASP, or (2) 70% of rated burst pressure of the casing adjusted for the mud weight used during the test less a 8.3 ppg back-up unless otherwise noted. Page 8 of 13 Wellhead Equipment Summary • Component Description Casing. Hanger Type' 13-5/8" 3M X 13-3/8" Slip Loc W/ 2, 2" LPO, Landing Base for 20" Conductor, U, AA, PSL1, 13 5/8" x 9 5/8" Fluted Casing Head Lower PR1 Mandrel 13-5/8" 3M Studded Bottom X 13-5/8" 5M Flg Top, W/ 2, 2-1/16" 5M Studded Outlets, 13 5/8" x 5 1/2" Fluted Casing Head Upper U,AA,PSLI,PR1 Mandrel 13-5/8" 5M X 7-1/16" 5M W/ 2 1/16" 5M and 4 1/16" 5M Studded Outlets and 4" HBPV Tubing Head Threads Comments: Two additional coiled tubing hangers will be added after rig release. These hangers will be 4 1/16" 5M X 4 1/16" 5M, sitting on top of 7 1/16" 5M X 4 1/16" 5M adapter flange. 1 3/4" coil will be run inside 2 3/8" coil and will be hung in their respective hangers. Directional Program Summarv Build Tum Coordinates Sec. No: Description MD (ft) TVD (ft) Rate (°/100') Rate (°/100') Dogleg (°/100') Inclination (deg) Azimuth (deg) +Nl-S (ft) +E/-W (ft) VS (ft) 1 Tie On 0 0 0 0 0 0 123.17 0 0 0 2 KOP 1,803.73 1,803.73 0 0 0 0 123.17 0 0 0 3 Build up Section 3.00 0 3.00 123.17 4 End of Build 2,970.39 2,899.17 3.00 0 3.00 35.00 123.17 -188.98 289.10 345.39 5 Hold Section 0 0 0 35.00 123.17 6 End of Hold 3,730.72 3,522.00 0 0 0 35.00 123.17 -427.59 654.14 781.49 7 Drop Section -3.00 0 3.00 123.17 8 End of Drop 4,897.38 4,617.44 -3.00 0 3.00 0.00 123.17 -616.57 943.24 1,126.88 9 TD 5,166.93 4, 887.00 0 0 0 0.00 123.17 -616.57 943.24 1,126.88 Comments: Vertical section calculated from a reference azimuth of 123.17° taken from surface location to bottom hole location. Potential Well Interference: Well Distance fft) Depth (MD) KU 13-6 57.97 573 KBU 22-6 61.33 Surface KBU 31-7RD 75.22 225 KBU 24-6 88.99 2,608 KBU 23X-6 103.61 2,097 No serious interference exists. See attached directional plan and anticollision analysis for more details. Page 9 of 13 • • 0 i I 1000 ~'. _. - - - - - ---- -- - c _ ~ 5w 9.625 "Surface Casing ~S 2000 _ --- -- -- - .C ~ U ~ i _ _._. _._ _1._ __. _ ~ KU 21-7X Sterling A8 > ~ N ~ ! KU 21-7X Sterling B3 ~ __ 4000 I - - ----- r _ _ _ 5.500 " Production Casing _ _ _ KU 21-7X TD 5000 -2000 -1000 0 1000 2000 30C Vertical Section at 123.17° (1500 ft/in) c v 1= O Z L _1 KU 21.7X Sterling B3 I i ~ i ~ _ i ', i KU 21-7X Sterling A8 ~ KU 2117X TD I i i ~T TTIT~T 0 500 1000 West(-)/East(+) (400 ft/in) Directional Surveying Summary Interval MWD Survey Magnetic Multishot Gyro Multishot Comments 0 - 1,500' X 1,500' - 5,167' X Comments: Drilling Fluid Program Summary Interval-TVD Minimum Inventory From To Density Gel (ft) (ft) (Ib/gal) Fluid Description Additives Viscosifier Barite Gel, Gelex, Soda Ash, Caustic, Barite, 0 1,500 8.6 9.4 Gel / Gelex Spud Mud Polypac Supreme UL, Sodium Meta Bisulfate Flo-Vis, Dual Flo, KCI, SafeCarb 10,40,250, 1,500 4,887 9.0 - 9.2 6% Flo-Pro w/ Safecarb Caustic, Klagard, Conqor 404, Sodium Meta Bisulfate Comments: See mud prognosis for details. Sized CaCO3 (SafeCarb) will be used to control leakoff. Page 10 of 13 • • Drilling Fluid Specifications Interval - TVD LSRV From (ft) To (ft) Density (Ib/gal Vis (sec/gt) 1 min (Ib./100ftz) PV (cP) YP (Ib/100 ftz) Fluid Loss (cc) pH _ ' Dri11 Solids {%,) 0 1,500 8.6 9. 60 - 100 N/A 25 - 35 < 10 +/- 9.5 < 5 1,500 4,887 9.0 - 9.2 30 - 40,000 8 - 12 < 7 +/- 9.5 +/- 7.5 Comments: As a standard practice for long string completions, the drilling mud that will remain above the top of cement on the 5 1l2" production casing will be treated with corrosion inhibitor (Congor 303A) at a concentration of 1 drum per 100 barrels of drilling fluid. See mud prognosis for details. Solids Control Equipment o m `m ~ a C ~ L N N ~ ~ C U -a ~ ~ N y H lE V) ~(A 'a C ~ ~- p Interval ~ o D ~ U U U N Comments 0 - 5,167' MD X X X X Closed Loop System, Full Containment Item Equipment Specifications (quantity, desi n type, brand, model, flow capacity, etc) Shaker 2 -Swaco Mongoose PT Desander N/A Desilter 1 -Derrick Model 0522 Mud Cleaner N/A Centrifuge 2 - MI/Swaco units Cuttings Dryer N/A Cuttings Injection Marathon G&I Facility Zero Discharge N/A Comments: The solids control equipment will consist of two shakers, a desilter, and the MI centrifuge van. Included will be equipment to de-water the underflow from the mud processing equipment to allow for disposal of the cuttings and solids by slurrification and injection into the disposal well at the KGF. Page 11 of 13 • Cement Program Summary • De pth Gauge Top of Cement Open Casing Size (in) MD (ft) TVD (ft) Hole Size (in) MD (ft) TVD (ft) Ann Vol To TOC (ft3) Slurry Vol (ft3) WOC Time (hrs) Hole Excess (%) 9 5/8 1,500 1,500 ~ 12 1 /4 0 0 470 857 8 75 5 1 /2 5,167 4,887 8 1 /2 1,400 1,400 866 961 N/A 10 Mix Water Compressive Casing Size Density ~ Qty Yield Slurry Vol TOC MD Qty WL FW Strength psi (in) Slurry Cement Description (Ib/gaq (sx) (ft3/sx) (ft~j (ft) (gal/sx) Type (cc) (°/a) 8 hr 24 hr 9 5/8 Tail Type I Cement 12.0 347 2.47 857 0 10.26 Fresh 682 0 337 1,368 Lead Class "G" 12.7 269 2.19 589 1,400 11.86 Fresh 5 1/2 Tail. Class "G" 13.5 204 1.82 372 3,731 9.23 Fresh Comments: See cement prognosis for details and spacer specifications. Note the small cement excess on the production hole. This is to ensure that hydrostatic pressure stays below expected frac gradients. Regulatory Waivers and Special Procedures AOGCC Regulation 20 ACC 25.035 (c) (1) (b) Requirement for diverter diameter to be at least 16 inches or to meet or exceed hole size. Marathon is requesting a waiver from the above regulation for KU 21-7X. The surface casing for this well is 9 5/8", with a 13 3/8" conductor string. The wellhead system currently available is 13 3/8" slip loc x 13 5/8" flanged. Our intentions are to fit the multibowl head to the 13 3/8" conductor pipe. From there a 13 5/8" 5M diverter spool would be placed on the head and our 13 5/8" 5M BOP stack would be rigged up on top of the diverter spool. The diverter spool has an 11" 5M outlet and valve configuration. The planned surface hole size is 12 1/4". ' Many wells have been drilled on the Kenai Gas Field 14-6 pad. No flow control issues have been seen in the surface hole of any of these wells. This configuration was recently used on Grassim Oskolkoff #4 for the surface hole and no problems were encountered. The actual 11"section of the diverter line is less than a couple of feet in length, with the remainder being a full 16" diameter. Once the surface casing is set and cemented, the diverter spool will be blind flanged and remain in the BOP stack nippled up on the wellhead. Page 12 of 13 • • Bit Summary Interval - MD TYPe Recommended Estimated From (ft) To (ft) Size (in) Manufacturer Model No. IADC WOB (ki s RPM Rotating Hours ROP ft/hr 0 1,500 12 1/4 Christensen MXL-1 117 20 - 50 80 - 300 1,500 5,167 8 1/2 Christensen HCM605 M323 Up to 25 Motor Comments: See bit prognosis for additional information. Back up bits for the 8'/z" hole section will consist of PDC and mill tooth bits. Hydraulics Summarv Rig mud pumps available are shown below. Max Press ~ Displacement ~ Liner ID Stroke 90% WP 95% eff Max Rate Hole Sections Used Qty Make Model (in) (in) (psi) (gaUstroke) (spm/gpm) On 5 8 2,597 2.04 125 / 255 Surface 3 National Oil Well A600PT 5 8 2,597 2.04 125 / 255 Intermediate 5 8 2,597 2.04 125 / 255 Production Tabulated below are the expected flow rates, standpipe pressures and nozzle sizes for each hole section. Hole Standpipe Min Nozzle Depth-MD Size Pump Rate Pressure AV ECD Size (ft) (in) (gpm) (psi) (fpm) (Ib/gaq (32"s) Remarks 0 - 1,500 12 1/4 662 2,000 130 6 - 13's Actual Data from CLU 8 (~ 6,722' MD) 1,500-5,167 81/2 477 1,400 247 5- 15's Actual Data from KBU 11-8X (~ 7,659' MD) Comments: See separate hydraulics calculations. Annular velocities in the 12'/a", and 8'/z" holes were calculated using 5" drillpipe. 5" drillpipe should be used to drill all hole sections to maximize hole cleaning, while minimizing stand pipe pressure. Formation Integrity Test Procedure ~ Surface and Intermediate casing shoes will be tested to Leak-off. Prior to drilling out of casing strings, test BOPs and casing to the specified pressure listed in the BOP Program section. Plot test and record volume required on the drilling report. Leak-off tests (LOT) are to be conducted as described below: 1. Drill 20' to 25' of new formation below the casing shoe and condition the mud to the same properties in and out. 2. Pull drill string into the casing shoe and close ram preventer, and line up to the choke manifold with a closed choke. 3. Begin slowly pumping fluid down the drill string at 1/2 bpm while recording casing and drillpipe pressures at 1/2 bbl intervals. A running plot of pressure versus volume should be kept by the drilling foreman while the test is in progress. 4. Stop pumping when the pressure curve departs form a straight line sufficiently to indicate leakage into the formation. Record as ppg equivalent mud density in the IADC and morning reports. 5. Monitor and plot pressure drop and time after shut-in for 10 minutes or until the shut-in pressure stabilizes. Page 13 of 13 • Marathon Oil • Well KU 21-7X Diverter Stack ~ Flow Nipple ~-- I Flow Line 135/8" 5M Annular ~ Preventer 135/8" 5M Double Bottom of dverter spool must Ram Preventer Pipe Ram be 24-45" from ground level for ~~ Glacier 1 rig placement. 2 1/16" 5M Blind Ram Check Valve 2 1/16" 5M Manually Operated Valves X X Kill 13 5/8" 5M Cross 3 1/8" 5M Manually Operated Valve ~ 3 1/8" 5M Hydraulically Operated Valve X X I-N--~ 11"Automatic Knife Valve 13 5/8" 5M Diverter Spool ~ ~..~~ l.._f u \ 11" 5M Diverter Outlet 135/8" 5M Tubing Head Flange • Marathon Oil Well KU 21-7X BOP Stack Flow Nipple ~~- 135/8" 5M Annular ~ I I Preventer 135/8" 5M Double Ram Preventer Pipe Ram • Z Bottom of diverter spool must be 24-45° from ground level for Glacier 1 rip placement. 2 1/i6" 5M Blind Ram Check Valve 2 1/16" 5M Manually 3 1/8" 5M Manually Operated Valves Operated Valve X X Kill Chok X X 13 5/8" 5M Cross 13 5/8° 5M Diverter Spool __~ ~_ 11" 5M Diverter Outlet Blind Flan ed I3 1/8" 5M Hydraulically Operated Valve 135/8° 5M Tubing Head Flange • Marathon Oil Well KU 21-7X / Choke Manifold To Gas Buster To Blooey Line Bleed off Line to Shakers X) (X) (X 0 0 o,f I ~ o,~ o,~~ x X x x x x ~~ x x ~ ~ * 3" 5M Valves x I 2 9/16" 10M Swaco 3 1/8" 5M Manually Hydraulically Operated Adjustable Choke Choke From BOP Stack • • Surface Use Plan for Kenai Beluga Unit, well KU 21-7X Surface location: 484' FSL, 1,330' FWL, Sec. 6, T4N, R11W, S.M. 1) Existing Roads Existing roads which will be used for access to KU 21-7X are shown on the attached map. Kenai, Alaska is the nearest town to the site and is also shown on the map. 2) Access Roads to be Constructed or Reconstructed No new roads will be required to access KU 21-7X. 3) Location of existing wells Well KU 21-7X will be drilled on Kenai Gas Field (KGF) pad 14-6. A pad drawing is enclosed that shows existing wells and the proposed location of KU 21-7X. 4) Location of existing and/or proposed facilities The locations of existing production facilities in the KGF pad 14-6 are shown on the enclosed pad drawing. A flowline will be installed from the KU 21-7X wellhead to an existing line heater and separator. 5) Location of Water Supply A water supply well exists on the pad that KU 21-7X will be drilled from. This is shown on the pad drawing. 6) Construction Materials No construction is planned on the pad. The recent pad expansion has already been completed and is sufficient. 7) Methods of handling waste disposal; a) Mud and Cuttings Cuttings will be dewatered on location. The cuttings and excess ranud will be hauled to Pad 41-18 of the Kenai Gas Field for disposal into Well KU 24-7~a Class II disposal well (AOGCC Disposal Injection Order No.9, Permit #81-176). b) Garbage All household and approved industrial garbage will be hauled to the Kenai Peninsula Borough Soldotna Landfill. c) Completion Fluids Clear fluids will be hauled to Pad 34-31 of the Kenai Gas field and injected in Well WD #1, an approved disposal well (AOGCC Permit #7-194). • d) Chemicals Unused chemicals will be returned to the vendors that provided them. Efforts will be made to minimize the use of all chemicals. e) Sewage Sewage will be hauled to the Kenai sanitation facility. 8) Anciliary Facilities A minimal camp will be established on the pad to house various supervisory and service company personnel. Approximately four trailer house type structures will be required for this purpose. Bottled water will be used for human consumption. Potable water will be obtained from the existing water well on the pad. S & R will collect and transport sanitary wastes to their ADC approved disposal facility. No additional structures will be necessary. 9) Plans for reclamation of the surface KU 21-7X will be drilled from an existing pad. Reclamation of the pad will occur after the abandonment of KU 21-7X and the other existing wells on the pad. Approval of the plan of reclamation wilt be obtained from CIRI Native Corporation prior to any reclamation work beginning. 10) Surface ownership The surface owner of the land in the Kenai Beluga Unit is the Salamatof Native Association. 11) Operator's Representative and Certification I hereby certify that I, or persons under my direct supervision, have inspected the proposed drill site and access route; that I am familiar with the conditions that currently exist; that the statements made in this plan are, to the best of my knowledge, true and correct; and that the work associated with operations proposed herein will be performed by Marathon Oil Company and its contractors and subcontractors in conformity with this plan and the terms and conditions under which it is approved. This statement is subject to the provisions of 18 U.S.C. 1001 for the filing of a false statement. Date: 2 /l.~ D ~o Name and Title: ti~X~ Willard J. Tank, Ad ced Senior Drilling Engineer Marathon Oil Company P.O. Box 3128 Houston, TX 77253 (713) 296-3273 ( i N r- ~ ~ ~ ~' '_ - - _ _ _ - - _ EDGL r A0 F007PRINT I ~ ~ - - _ _ I I -- __ 1 I KENAI GAS FIELD I PAD 14-6 I °AD ELEVATION-65.6' M.S.Q. K.B.U. ?1-7 K.B.U. 22_g / 8' OiA. WELL CELLAR 78' ~ SILO ~ X=271,989.25 8' OIA. WELL I - -I-~ Y=2,362,537.15 CELLAR X-272,189.56 Y=2,3Fi2,527.32 1330' FWL I I W Z I WA?'ER VdELL --r I a" eASINc 0 CJ Q (~j K.U. 21-7 W 10' ~ SILO (/)) X=271,928.94 I Y=2,362,474.06 I I 1 6 - -+- - - - 12 1 7 I K.U. 13-6 WELL HOUSE 0 X=272, 204.47 K.U. 14 X-6 Y=2,362,476.36 WELL HUtJSE ~ X=2'72,062.87 K.B.U. 31- 7 Y=2,3c2,471.46 WELL HOUSE X=272,221.84 Y= 2, 362, 453.56 K.U. 23- 7 ~8'~SiLO X= 272, 019.41 Y= 2, 362, 371.79 ~t ~ 4 ~~ K.Q.U. 24-6 L_-- NJEIL HOUSE K 23-6X B U ~: 2362380.670 . . . E: 272174.290 WELL HOUSE X=272,122.20 Y=2,362,337.47 SECTION LINE NOTES 1. BASIS OF COORDINATES IS U.S.C. & G.S. TRI STATION AUDRY IN A.S.P. ZONE 4. (NAD 27) AVERAGE CONVERGENCE OF POINTS SHOWN:Ot°5'58". 2. AUDRY LOCATION: LAT: 60°30'50.559"N LONG: 151 ° 16'37.445"W NORTHING = 2,382,045.42 FASTING = 269,866.75 NORTH I WELL K.U. 21-7X I AS-BUILT WELL LOCATION 8' WELL CELLAR ASP ZONE 4 NAD27 \ N: 2362523.31 E: 272250.76 LAT: 60°27'38.787" N LONG: 151 °15'42.359"' FWL = 1330' FSL = 484' TOP CONDUCTOR ELEV = 66.25' (MSL) SECTION 6, TOWNSHIP 4N ~ RANGE 11 W, SM AK/ K.U. 31--7X I ~ WELL HOUSE I X=?.72,247.95 Y= 2, 362, 373.05 I I ~t I d' ~ --' SCALE 0 60 120 FEET ' `- T - ~O' T M 1•MJLA1iK~,A 11V, PROJECT REVISION: 1 oarE 2/09/06 O~ VV~AI\ i KENAI GAS FIELD PAD 14-6 WELL K.U. 21-7X ORAWNBY: DME Aw-THON AiA1~A RHtBOI~i AS-BUILT SURFACE LOCATION DIAGRAM scALE: 9•=sa PROJECT NO 0630 ENGINE SI G N / . 800K NO. 06-04 N C011511I.tiI1CJ Inc. P O. BOX 488 SOLDOTNA AK 988 69 McLane VOICE: (907)283<218 FAX: (907)283.3265 EMAIL: SAMCLANE~MCLANECG.COM LOCATION S6 T4N R11W SEWARD MERIDIAN, ALASKA SHEET 1 OF NORTH ~ ~ z.- _--.~_~ I Pipeline _ - `. ~ i;. Gas GravN~ a ' ,,, c i ~ ~~ ~. ~~/ i Pad 33-30 ~ ~ '~ _ - ~.-~ :~;P o P P Y Lan 4 ,tl CORP Y~ 1 < ~ ~ ~--~ ' ' !. ' ~' Private toad J~__ ~.~ iF ~ ..-:~z3~ooo0 ~Q I FEET 'J •.i~, \ ILa.7 r~'-3 cif ` ' 1==_,- ~ ` Pad 43-32 ~ ~ ~Ir~~ r ~• ~ Landing \ ,..-Ji ° xGas Wens ~ ..~ Stnps Pad 34 31j ~ - .. KENAI GAS FIELD 1, 6 '' 4 I - e 4. PitsJl , Pads 14-5 -- -- - - - _- ~ •.r ~ow ~ ~~ ~, 1 ~s wells ~ ~ ~~' 1.•I: _ ~ ~ I - -.~ Pad 41-7 :;~ i ";`l Peel 14-4 Landing ~~~-'' • it Project' Location i _ .. 1.. ~ . _ ~ a 9 I. ~ >`~.y . Y ~~ ~ it .~ e ~ Privats~~ Road I, _ i• ~ . _ .. \ - _ .. • a Pad 41-18 ~~ - ~ A I Echo ~ - t ~ ' - Lake _~~~ 1 t 4 ~ ~ ` r _ br , COOK INLET ~ P I{,,d~,4-18 ~~ ' .~, ~ •~~ - °.1 • - s• - - - S Abandoned ~ ~ ~ '`1./ •3 ~ = x • ~ .~~ - Lending J ' ~ _.. ~ Cs~ .. -. _ ~ .. _ ~--~. ~ Strap _ _ ' - 71, Wit.` a +ts ~ ?2 \ ~ ~• / ;• ~ ^- •. Kenai Unit Boundary ~'•j ~ j~~: ~~ 't ~ ~~ • Kalifon.+ky ' ' ~k' l ' 25' ~~~ t~ I ~ , `{ • ± 25 ~ 30 2g 28'. °. 1! - F' V . i. i ~ ry. I ..A ! J ~ ~ .•~ew _ r -•, ~ ~ u. -. ; . !. ~c I4r ,.- _,. ....., Reflechou a. < ~ ,. , . 36 ,rw Lakc • '7r 34 ~ ' 35 I Kasflof Rivor ~ ® - - ~~' l~ .. ~ us wa~ , .. . ' ~ -_ • ~ C I ?~-- .... _ -N Strip . ~~ ~ _ '' . ,.' ^Z Source Map: USGS, 1951 Kenai, Alaska B-4, '1:63,360 SCALE 163360 I ~ ~ { Mlle _ _.-. __-_ _-i ... - I )tyn YMYt rtm _-_ -. 9000 :7000 I~."Y.U :Fi(%1~ .'71100 lf[i f_- 1 ] ~ t` I 7 1 '~ KII ONEIr R$ Marathon Oil Company Kenai Gas Field Area Map II m:y..~I:1JF .~ca ALq p.u • • {d~ ; • 6 Z r ~ e + ~ c ' v, n~ ~r ~ ,,~ ~ ~ ~ ~ -~ -- -r • ~,~ ~~ f ~~ 3 I 1 \~ ~ ` ' ` ~. ~~~ 1 ~1 \ ~ T I CC iuu .~ ~,~. \ j' ~ i ' ~:_~- ~ 1 s :. ~ I - "'~ v 1~ ` 7 ,~~ s6~ 5~ Q r.~s I ~. w GLACIER DRILLING RIG #1 MUD PITS AND PUMP ROOM LAYOUT _~ e /,itr ~~ NUQ~iES INTE+Q ~ -soo 0 ~~ -300 E U P 0 U 300 soo 900 1200 1500 d 1800 Z a 2100 as ~ 2400 V ~ z7oo L F- 3000 V 3300 3600 3900 4200 4500 4800 5100 5400 Sterling AB Tgt /End of Hold 29.00 Sterling B3 17.14 11.14 DLS: 3.00 deg/100ft End of Drop 5 1/2" Liner ~ TD Tgt -600 -300 ~[ -0 300 600 900 1200 1500 Scale 1 cm ='ll6~tical Section (feet) -> Azimuth 123.17 with reference 0.00 N, 0.00 E from Slot# KU21-7X RATHON Oil Comp y Location: Cook Inlet, Alaska (Kenai Penninsula) Slot: Slot# KU21-7X Field: Kenai Gas Field Well: KU21-7X Installation: Pad 14-6 Welibore: KU21-7X Ver 1 'M' MARATHON Scale 1 cm = 50 ft East (feet) -> -100 0 100 200 300 400 500 600 700 800 900 1000 1100 9 5/8" Casino KOP 6.00 12.00 DLS: 3.00 deg/100ft 24.00 30.00 End of Build 100 0 -100 -200 A -300 ~ Hoid -400 r+ -500 TD Tgt -600 5 1/2" Liner ~i -700 , -800 cn 0 WELL PROFILE DATA Point MD Ine Art TVD NoRh East dag1100k V. Sect Tie on o.oo o.o0 123.17 0.00 0.00 0.00 0.00 0.00 KOP 1803.73 0.00 i 123.17 1803.73 0.00 0.00 0.00 0.00 End of Build 2970.39 35.00 123.17 2899.17 -188.98 289.10 3.00 345.39 Target 3730.72 35.00 123.17 3522.00 -427.59 654.14 0.00 781.49 End of Drop 4126.14 23.14 123.17 3867.00 -532.52 814.86 3.00 973.27 End of Drop 4897.38 ~ 0.00 123.17 I 4617.44 -676.57 943.24 3.00 1126.88 T.D. & End of Hold 5166.93 0.00 123.17 4887.00 -616.57 943.24 0.00 1126.88 Croated by: Planner Dale pbtled : 2-Feb~2006 Plot reference is KU21-7X Ver 1. Raf vrellpath is KU21-7X Ver 1. Coordinates are in feet reference Slot# KU21-7X. True Veniwl Deplha are reference Rig Datum. Measured Depths are reference Rig Detum. Rig Datum: Datum #1 Rig Datum to mean sea level: 87.00 fl. Plof North is aligned b TRUE North. Ellipse dimensions are of PROJECTED error ellipsoid Ellipsoids are scaled to 95.45% (10) confidence MARATHON Oil Company,Slot# KU21-7X ~~ Pad 14-6, MARATHON Kenai Gas Field,Cook Inlet, Alaska (Kenai Penninsula) PROPOSAL LISTING Page 1 Wellbore: KU21-7X Ver 1 Wellpath: KU21-7X Ver 1 Date Printed: 6-Feb-2006 ~i~ INTEQ Wellbore Name Created Last Revised _ KU21-7X Ver 1 12-Jan-2006 2-Feb-2006 Well Name Government ID LastRevised KU21-7X 12-Jan-2006 Slot Name Grid Northin Grid Eastin Latitude Lon itude North East Slot# KU21-7X 2362523.3100 272250.7600 N60 27 38.7874 W151 15 42.3591 572.41N 1246.83E Installation Name Eastin Northin Coord Svstem Name North Ali nment Pad 14-6 270993.1910 2361975.0460 AK-4 on NORTH AMERICAN DATUM 1927 datum True Field Name Eastin Northin Coord S stem Name North Af nment Kenai Gas Field 270993 1910 2361975.0460 AK-4 on NORTH AMERICAN DATUM 1927 datum True Created By_____ All data is in Feet unless otherwise stated Coordinates are from Slot MD's are from Rig and TVD's are from Rig (Datum #1 87.Oft above mean sea level ) Vertical Section is from O.OON 0.00E on azimuth 123.17 degrees Bottom hole distance is 1126.88 Feet on azimuth 123.17 degrees from Wellhead Calculation method uses Minimum Curvature method Prepared by Baker Hughes Incorporated MARATHON MARATHON Oil Company,Slot# KU21-7X Pad 14-6, Kenai Gas Field,Cook Inlet, Alaska (Kenai Penninsula) U PROPOSAL LISTING Page 2 Wellbore: KU21-7X Ver 1 Wellpath: KU21-7X Ver 1 Date Printed: 6-Feb-2006 r..~I' /~ . ' ri. INTEQ Well ath Grid Re ort MD[ft] Inc[deg] Azi[deg] TVD[ft] North[ft] East[ft] Dogleg /1 Oft Vertical ection ft Easting Northing 0.00 0.00 123.17 0.00 O.OON 0.00E 0.00 0.00 __ 272250.76 2362523.31 100.00 0.00 123.17 100.00 O.OON 0.00E 0.00 0.00 272250.76 2362523.31 200.00 0.00 123.17 200.00 O.OON __ 0.00E 0.00 _ 0.00 272250.76 2362523.31 300.00 0.00 123.17 300.00 O.OON 0.00E 0.00 __ 0.00 272250.76 2362523.31 400.00 0.00 123.17 400.00 O.OON _ 0.00E 0.00 0.00 272250.76 2362523.31 500.00 0.00 123.17 500.00 O.OON 0.00E 0.00 0.00 _ 272250.76 2362523.31 600.00 0.00 123.17 600.00 O.OON 0.00E 0.00 0.00 272250.76 2362523.31 700.00 0.00 123.17 700.00 O.OON 0.00E 0.00 0.00 272250.76 2362523.31 800.00 0.00 123.17 800.00 O.OON 0.00E __ 0.00 0.00 272250.76 2362523.31 900.00 0.00 _ 123.17 900.00 O.OON 0.00E 0.00 0.00 272250.76 2362523.31 1000.00 0.00 123.17 1000.00 O.OON 0.00E 0.00 0.00 272250.76 2362523.31 1100.00 0.00 123.17 1100.00 O.OON 0.00E 0.00 0.00 272250.76 2362523.31 1200.00 0.00 123.17 1200.00 O.OON 0.00E 0.00 0.00 272250.76 2362523.31 1300.00 0.00 123.17 1300.00 O.OON 0.00E 0.00 0.00 272250.76 2362523.31 1400.00 0.00 123.17 1400.00 O.OON 0.00E 0.00 0.00 272250.76 2362523.31 1500.00 0.00 123.17 1500.00 O.OON 0.00E 0.00 0.00 272250.76 2362523.31 1600.00 0.00 123.17 1600.00 O.OON 0.00E 0.00 _ 0.00 _ 272250.76 2362523.31 1700.00 0.00 123.17 1700.00 O.OON _ 0.00E 0.00 0.00 272250.76 2362523.31 1800.00 0.00 123.17 1800.00 O.OON 0.00E 0.00 0.00 272250.76 2362523.31 1803.73 0.00 123.17 1803.73 O.OON _ 0.00E __. 0.00 _ 0.00 272250.76 2362523.31 1903.73 3.00 123.17 1903.68 1.43S 2.19E 3.00 2.62 272252.92 2362521. 4 2003.73 6.00 123.17 2003.37 5.72S 8.76E 3.00 10.46 272259.41 2362517.42 2103.73 9.00 123.17 _ 2102.50 12.87S 19.68E ~ 3.00 23.51 272270.19 2362510.07 2203.73 12.00 123.17 2200.81 22.84S 34.93E 3.00 41.74 272285.25 2362499.81 2303.73 15.00 123.17 _ 2298.04 35.61 S 54.47E _ 3.00 65.08 272304.54 2362486.67 2403.73 18.00 123.17 2393.91 51.14S 78.24E 3.00 93.48 272328.00 2362470.68 2503.73 21.00 123.17 2488.16 69.41S 106.18E 3.00__._ 126.85 272355.59 2362451.89 2603.73 24.00 123.17 2580.54 __ 90.34S 138.21E 3.00 _ 165.12 272387.21 2362430.34 2703.73 27.00 123.17 ___ 2670.79 113.90S 174.24E 3.00 208.16 272422.78 2362406.10 2803.73 2903.73 30.00 _ 33.00 ~ I___ 123.17 123.17 2758.66 2843.91 ___ 140.OOS 168.58S 214 18E 257.90E ~00 __ 3.00 255.87 308.12 _ 272462.20 272505.38 2362379.24 2362349.82 2970.39 35.00 123.17 2899.17 188.98S 289.11E 3.00 345.39 272536.18 2362328.84 3000.00 35.00 123.17 2923.43 198.27S 303.32E 0.00 362.37 272550.21 2362319.27 3100.00 35.00 123.17 3005.34 229.65S 351.33E 0.00 419.73 272597.61 2362286.98 3200.00 35.00 123.17 3087.26 261.04S _ 399.34E ~ 0.00 _ 477.09 __ 272645.01 2362254.68 3300.00 35.00 123.17 3169.18 292.42S 447.35E ' 0.00 534.45 272692.41 2362222.39 3400.00 35.00 123.17 3251.09 323.80S 495.36E 0.00 591.80 272739.81 2362190.09 3500.00 35.00 123.17 3333.01 355.19S 543.37E __ 0.00 _ 649.16 _ 272787.20 2362157.80 3600.00 35.00 123.17 3414.92 _ 386.57S 591.38E 0.00 706.52 272834.60 2362125.50 3700.00 35.00 123.17 3496.84 417.95S 639.39E _ 0.00 763.88 __ 272882.00 2362093.20 3730.72 35.00 123.17 ___ 3522.00 427.59S _ _ 654.14E . ,._, 0.00 _ 781.49 .__ 272896.56 _ 2362083.28 3830.72 _ 32.00 123.17 3605.38 _ 457.79S __ 700.33E _.. 3.00 __836.68,_ _ 272942.16 2362052.21 3930.72 29.00 123.17 .. i 3691.53 _ 485.55S __742.81E ' 3.00 887.43. 272984.10 2362023.64 4030.72 26.00 123.17 3780.22 510.81 S 781.46E___ 3.00 _ 933.60 _ 273022.25 __ 2361997.64 _ 4126.14 23.14 123.17 3867.00 532.52S 814.66E 3.00 __ 973.27 __ 273055.04 2361975.30 4226.14 20.14 123.17 __ 3959.94 _ 552.69S _ 845.52E _ I 3.00 __ 1010.14 273085.50 _ 2361954.55 4326.14 17.14 123.17 _ 4054.69 570.17S 872.27E i 3.00 1042.09 273111.91 2361936.55 4426.14 14.14 123.17 , 4150.98 584.92S _ 894.83E x.00 _ 1069.04 273134.18 2361921.38 4526.14 11.14 ___ 123.17 _ 4248.54 596.89S 913.14E 3.00 1090.92 273152.26 2361909.06 4626.14 8.14 123.17 4347.12 606.05S 927.15E 3.00 1107.66 273166.09 2361899.64 4726.14 5.14 123.17 4446.44_ 612.37S 936.82E 3.00 _ 1119.21 273175.64 2361893.13 All data is in Feet unless otherwise stated Coordinates are from Slot MD's are from Rig and ND's are from Rig (Datum #1 87.Oft above mean sea level ) Vertical Section is from O.OON 0.00E on azimuth 123.17 degrees Bottom hole distance is 1126.88 Feet on azimuth 123.17 degrees from Wellhead Calculation method uses Minimum Curvature method Prepared by Baker Hughes Incorporated • MARATHON O[I Company,Slot# KU21-7X Pad 14-6, MARATHON Kenai Gas Field,Cook Inlet, Alaska (Kenai Penninsula) PROPOSAL LISTING Page 3 Wellbore: KU21-7X Ver 1 Wellpath: KU21-7X Ver 1 Date Printed: 6-Feb-2006 ,, --~~ ~ ~ . INTEQ Well ath Grid Re ort MD[ft] Jnc[deg] Azi[deg] ND[ftj North[ft] Eastjft] Dogleg de /100ft Vertical 'o ft Easting Northing 4826.14 2.14 123.17 4546.23 615.84S 942.13E 3.00 1125.56 _ 273180.88 2361889.56 4897.38 0.00 123.17 4617.44 _ 616.57S 943.25E 3.00 1126.88 273181.98 2361888.81 4900.00 0.00 123.17 4620.07 616.57S 943.25E 0.00 1126.88 273181.98 _ 2361888.81 5000.00 0.00 123.17 4720.07 616.57S 943.25E 0.00 1126.88 273181.98 2361888.81 5100.00 0.00 123.17 4820.07 616.57S 943.25E 0.00 1126.88 273181.98 2361888.81 5166.93 0.00 123.17 4887.00 616.57S 943.25E 0.00 1126.88 273181.98 2361888.81 All data is in Feet unless otherwise stated Coordinates are from Slot MD's are from Rig and TVD's are from Rig (Datum #1 87.Oft above mean sea level ) Vertical Section is from O.OON 0.00E on azimuth 123.17 degrees Bottom hole distance is 1126.88 Feet on azimuth 123.17 degrees from Wellhead Calculation method uses Minimum Curvature method Prepared by Baker Hughes Incorporated • MARATHON Oil Company,Slot# KU21-7X Pad 14-6, MARATHON Kenai Gas Field,Cook Inlet, Alaska (Kenai Penninsula) PROPOSAL LISTING Page 4 Wellbore: KU21-7X Ver 1 Wellpath: KU21-7X Ver 1 Date Printed: 6-Feb-2006 ~t~ INTEQ Comments MD ft TVD ft North ft East ft Comment 1 03.73 1803.73 O.OON 0.00E KOP 2970.39 2899.17 188.98S 289.11E End of Build 3730.72 3522.00 427.59S 654.14E __ _ Sterling AB Tgt /End of Hold 4126.14 3867.00 532.52S 814.66E Sterling B3 _ 4897.38 4617.44 616.57S 943.25E _ _ End of Drop 5166.93 4887.00 616.57S 943.25E ___ TD T t Hole Sections Diameter in Start MD ft Start TVD ft Start N rttt ft Start East ft End MD ft End ND ft End North ft Start Eas ft Wellbore 12 1/4 0.00 0.00 O.OON 0.00E 1500.00 1500.00 O.OON 0.00E KU21-7X Ver 1 8 1/2 1500.00 1500.00 O.OON 0.00E 5166.93 4887.00 616.57S 943.25E KU21-7X Ver 1 Casin s Name __ Top MD ft Top Tyorftt Top North ft _ Top East ft Shoe _ MDfftl Shoe TVD ft Shoe North ft Shoe Eas ft Wellbore i 9 5/8" Casin 0.00 0.00 O.OON 0.00E 1500.00 1500.00 O.OON 0.00E KU21-7X Ver 1 5 1/2" Liner 0.00 0.00 O.OON 0.00E 5166.93 4887.00 616.57S 943.25E KU21-7X Ver 1 Tar ets Name North ft Eas ft TVD ft Latitude Lon itude Eastin Norhtin Last Revised KU21-7X - TD - 575.48S 885.47E 4887.00 N60 27 33.11 W151 1524.70 273125.00 2361931.00 6-Oct-2005 1 /12/06 KU21-7X -Sterling 575.48S 885.47E _ 3867.00 __ N60 27 33.11 W151 1524.70 273125.00 2361931.00 6-Oct-2005 63 - 1/12/06 _ _ KU21-7X -Sterling 459.17S 587.17E 3522.00 N60 27 34.26 W151 1530.65 272829.00 2362053.00 6-Oct-2005 AB - 1/12/06 All data is in Feet unless otherwise stated Coordinates are from Slot MD's are from Rig and TVD's are from Rig (Datum #1 87.Oft above mean sea level ) Vertical Section is from O.OON 0.00E on azimuth 123.17 degrees Bottom hole distance is 1126.88 Feet on azimuth 123.17 degrees from Wellhead Calculation method uses Minimum Curvature method Prepared by Baker Hughes Incorporated ~~;~ ~ MARATHON Oil Company BAKER Location: Cook Inlet, Alaska (Kenai Penninsula) Slot: Slot# KU21-7X Nu~r~s Field: Kenai Gas Field Well: KU21-7X INTEQ Installation: Pad 14-6 wellbore: Ku2laxverl MARATHON Scale 1 cm = 25 ft East (feet) -> -50 0 50 100 150 200 250 300 350 400 450 500 550 600 650 700 750 800 850 900 950 1000 1050 50 i i I i i i 1 i i i i i I i i- _I i ~ 1- 50 °~, yo° ~°° ° , ~~~ ~ . d9 ~~ _ 3000 0 ,y ° s0 • ao 00 - 0 titi ° , ° " ~,~~ °o _ 3° s0 _ 'os o0 ~" b0° ~y ~ . ~?~y. 00 _3100 -50 - `~ o°o -0 `~'0 °o - -50 °o °° yo 000 0 -100 ~ ~s ~•^6°~.~°°~oo ~~o. ° ~,~o0 000 ~o o _3200 - -100 A0o o~ ~~00 ry~° - -150 ~s o00 0 0' ti -150 °°° • ti -200 ~ ~^°° • ~~° -200 o' A -250 ~, ti`~° ,~~.°° -250 ^ ~ °o ' r ti° _ o° - Z -300 bo° °~ - -300 ~ ti ~ °o °o ~ ,~°°° - ~ -350 ~ ti6 ~°° by - -350 ~ -400 ~ ~ ~°° ^°o ° ,~yo° - -400 ~ ~°o ~o° "~ ~°O 6°p -450 ~ ,~a°° ° °° ° -450 i „~h° ~6°O `yam' ,~,~°° O° -500 .`~^ °°o° o o°° ,~e°° -500 - e° . `~ o ~ a0°° °O gp'° ° ~ -550 . °~ bti°~°° °.~°° o°° a~°o °° -550 ~ N Kur-~ p`b °° d -600 ,~ti°° °° a°°° - -600 ~ U ,. _ ~ I I °-' -650 O -650 ~ m in ~ -50 0 50 100 150 200 250 300 350 400 450 500 550 600 650 700 750 800 850 900 950 1000 1050 Scale 1 cm = 25 ft East (feet) -> MARATHON O[I Company CLEARANCE LISTING Page 1 ~~ KU21-7X Ver 1, KU21-7X Ver 1 Date Printed: 6-Feb-2006 MARATHON Slot# KU21-7X, Pad 14-6 Kenai Gas Field, Cook Inlet, Alaska INTE(~ (Kenai Penninsula) Ellipse separations are reported ONLY if BOTH wells have uncertainty data Only Depth and Magnetic Reference Field error terms are correlated across tie points Proximities beyond ft with expansion rate of ft/1000ft are not reported Cutoff is calculated on CENTRE to CENTRE distance Summary data uses Closest Approach clearance calculation for all minima Hole size/Casings are NOT included Hole size/Casings are NOT subtracted from Centre-Centre distance Ellipses scaled to 2.OOstandard deviations. Closing Factor Confidence limit of 99.80% Errors on Ref start at Slot Permanent Datum (0.00) Report uses Revised: (D-C)/E Factor Calculation Wellbore Name _ Creat d last Revised KU21-7X Ver 1 12-Jan-2006 2-Feb-2006 Well Name Government ID Last Revised KU21-7X _ 12-Jan-2006 Slot ame Grid Northin rid s6 't Lon i N rt E t Slot# KU21-7X 2362523.3100 272250.7600___ N60 27 38.7874 ___W151 15 42.3591 572.41N _ 1246.83E Installation _ Name Eastin _ Northin _ Coord S stem Name North Ali nment Pad 14-6 270993.1910 2361975.0460 AK-4 on NORTH AMERICAN DATUM 1927 datum True Field Name Eastin Northin Coord S stem Name North Ali nment Kenai Gas Field 270993.1910 2361975.0460___ AK-4 on NORTH AMERICAN DATUM 1927 datum True Cleara nce Sum ma Offset We1lName Offset Wellbore Offset Slot Offset Structure Minimum Distance ft MD(ft] Diverging From[ftJ Ellipse Separation ft Ellipse MD[ftJ Clearance Factor Clearance MD[ftJ KU13-6 __ KU13-6 slot #KU 13-6 Pad 14-6 57.97 _ 572.67 572.67 53.80 572.67 12.92 918.64 KBU22-6 KBU22-6 Slot #KBU22-6 Pad 14-6 i 61.33 0.00 ! 400.00 60.07 __ 426.51 23.37 771.00 KBU31-7 _ KBU31-7Rd _ slot #KBU 31-7 Pad 14-6 ~ _____ 75.22 225.33 - --- 1300.00 70.73 -- 935.04 10.50 - 1427.17 KBU31-7 KBU31-7 slot#KBU 31-7 Pad 14-6 75.22 225.33 1300.00 _ 70.73 935.04 10.50 1427.17 KBU24-6 KBU24-6 Slot# KBU24-6 _. Pad 14-6 88.99 _. 2608.27 2608.27 _ 81.84 2608.27 11.55 2723.10 KBU23X-6 KBU23X-6 slot #KBU 23X-6 Pad 14-6 ' __ 103.61 _ 2096.55 ~ 2096.55 ! _ 90.91 2099.74 8.05 2132.55 KU 31-7 KU 31-7 slot #KU 31-7 Pad 14-6 126.45 1113.38 1113.38 121.45 1131.89 21.98 1328.74 KU14X-6 KU14X-6 slot #KDU 8 Pad 14-6 194.92 0.00 1800.00 182.87 1820.87 15.23 2066.93 KBU 23-7 KBU 23-7 Slot #KBU 23-7 Pad 14-6 246.91 1335.95 1335.95 241.27 1361.55 39.28 1689.63 All data is in Feet unless otherwise stated Coordinates are from Slot and TVD's are from Rig (Datum #1 87.Oft above mean sea level ) Reference MD's are from Rig, Offset MD's are from Rig Calculation method uses Minimum Curvature method Confidence Limit of 95.45 (1 D) Prepared by Baker Hughes Incorporated • '~ MARATHON MARATHON Oil Company KU21-7X Ver 1, KU21-7X Ver 1 Slot# KU21-7X, Pad 14-6 CLEARANCE LISTING Page 2 Date Printed: 6-Feb-2006 Kenai Gas Field, Cook Inlet, Alaska (Kenai Penninsula) wit INTEQ Reference Wellbore Surve Tool Pro ram Surve Name MD ft Surve Tool Error Model Planned 5166.93 Navi Trak Standard All data is in Feet unless otherwise stated Coordinates are from Slot and TVD's are from Rig (Datum #1 87.Oft above mean sea level ) Reference MD's are from Rig, Offset MD's are from Rig Calculation method uses Minimum Curvature method Confidence Limit of 95.45 (1D) Prepared by Baker Hughes Incorporated • MARATHON O[I Company '~ KU21-7X Ver 1, KU21-7X Ver 1 MARATHON Slot# KU21-7X, Pad 14-6 I'~ CLEARANCE LISTING Page 3 Date Printed: 6-Feb-2006 Kenai Gas Field, Cook Inlet, Alaska (Kenai Penninsula) gp~~~~ ENJ INTEQ C learance Data Reference MD[ft] Reference TVD[ft] Reference North[ft] Reference East[ft] Offset Well Offset MD[ft] Offset TVD[ft] Offset North[ft] Offset East[ft] _ Angle From Highside de Closest Approach Distance ft Ellipse Separation [ft] 0.00 0.00 O.OON 0.00E _-- KBU24-6 0.00 0.00 164.08S 73.34W -155.9 179.73 179.73 100.00 100.00 O.OON 0.00E KBU24-6 100.01 100.01 _ 163.99S 73.54W -155.8 179.73 179.15 200.00 200.00 O.OON 0.00E KBU24-6 200.01 200.01 163.74S 74.10W -155.7 179.72 178.79 300.00 300.00 O.OON 0.00E KBU24-6 300.01 300.00 163.31S 75.OOW -155.3 179.71 178.46 400.00 400.00 O.OON 0.00E KBU24-6 399.68 399.66 162.84S 76.26W -154.9 179.81 178.19 500.00 500.00 O.OON 0.00E KBU24-6 ___ 499.01 498.97 162.59S 77.86W -154.4 180.28 178.28 600.00 600.00 O.OON 0.00E KBU24-6 597.96 ._ _ 597.91 162.66S 79.85W -153.8 181.22 178.86 700.00 700.00 O.OON 0.00E __ KBU24-6 697.85 _~ _ 697.77 162.75S 82.32W -153.2 182.40 179.63 800.00 800.00 O.OON 0.00E KBU24-6 797.73 797.60 162.65S 85.27W -152.3 183.66 180.51 900.00 900.00 O.OON 0.00E KBU24-6 898.46 898.28._ 162.36S 88.28W -151.5 184.82 181.55 1000.00 1000.00 O.OON 0.00E KBU24-6 999.08 998.88 161.90S 90.50W -150.8 185.48 181.99 1100.00 1100.00 O.OON 0.00E KBU24-6 1098.68 1098.45 161.43S 92.83W -150.1 186.22 182.28 1200.00 1200.00 O.OON 0.00E KBU24-6 1197.87 1197.61 161.01S 95.60W -149.3 187.26 182.90 1300.00 1300.00 O.OON 0.00E KBU24-6 1298.02 1297.70 160.61S 98.71W -148.4 188.53 183.88 1400.00 1400.00 O.OON O.OOE KBU24-6 1400.48 1400.14 _ 160.15S _ 100.74W -147.8 189.19 184.54 1500.00 1500.00 O.OON _ 0.00E _ KBU24-6 1501.96 1501.62 159.39S 100.98W -147.6 188.70 183.99 1600.00 1600.00 O.OON 0.00E KBU24-6 1604.20 1603.84 158.44S 99.83W -147.8 187.31 182.54 1700.00 1700.00 O.OON O.OOE KBU24-6 1708.84 1708.42 __ 156.05S _ 96.91W -148.2 _ 183.89 179.11. 1800.00 1800.00 O.OON ~ ___ 0.00E KBU24-6 1812.58 1811.95 152.60S 91.54W -149.0 178.35 173.58 1803.73 1803.73 O.OON 0.00E KBU24-6 1816.30 _ _ 1815.66 152.45S 91.30W -149.1 178.10 173.33 1903.73 1903.68 _ 1.43S 2.19E KBU24-6 1918.20 1917,17 148,48S 83.30W 87.2 170.63 165.96 2003.73 2003.36 5.72S 8.76E KBU24-6 2022.35 2020.59 143.99S 71.91 W 87.8 161.00 156.38 2103.73 2102.50 12.87S 19.68E KBU24-6 2124.15_ 2121.23 138.78S 57.50W 89.5 148.87 144.15 2203.73 2200.81 22.84S __ 34.93E KBU24-6 2224.77 2220.23 133.92S 40.26W _ 92.6 135.54 130.49 2303.73 2298.04 35.61 S 54.47E KBU24-6 2325.66 _ 2318.97 129.03S 20.11 W _ 97.8 121.36 115.87 2403.73 _ 2393.91 51.14S 78.24E KBU24-6 2427.02 2417_50 123.35S 2.95E 106.3 106.95 100.89 2503.73 2488.16 69.41S 106.18E KBU24-6 _ 2526.42 2513.42 116.81S 28.18E 119.1 94.71 88.17 2603.73 2580.54 90.34S 138.21E KBU24-6 2624_64. 2607.46. _ 109.62S_ 55.58E_ 136.4 89.02 81.90 2608.27 2584.68 91.36S 139.76E KBU24-6 2628.97 2611.58 109.29S 56.84E 137.3 88.99 81.84 2673.88 2644.09 106.60S 163.07E KBU24-6 2692.77 2672.24 104.37S 76.01E 149.9 91.53 83.73 2703.73 2670.79 113.90S 174.24E KBU24-6 2721.57 _ 2699.52 _ _ 102.08S 84.97E 155.5 94.52 86.37 2723.10 2688.00 118.75S 181.67E KBU24-6 2739.79 ~ 2716.74 100.59S 90.71E 158.9 97.11 88.70 2803.73 2758.66 140.OOS 214.18E KBU24-6 2815.86 2788.48 93.98S 115.14E 171.8 113.20 103.72 2903.73 2843.91 168.58S 257.90E KBU24-6 2907.66 2874.83 85.51S 145.13E -176.7 143.44 132.77 2970.39 2899.17 188.98S 289.11E KBU24-6 2968.42 2932.01 79.98S 164.90E -171.3 168.48 157.08 3000.00 2923.43 198.27S 303.32E KBU24-6 _ 2995.07 2957.09 77.62S 173.60E -169.5 180.32 168.54 3100.00 3005.35 229.65S __ 351.33E KBU24-6 3087.70 3044.10 69.92S 204.44E -164.7 220.44 207.39 3200.00 3087.26 261.04S 399.34E KBU24-6 3176.35 3127.30 62.43S 234.10E -161.4 261.44 247.22 Offset Weilbore Surve Tool Pro rams Well Wellbore Surve Name _ MDfftl __ Survev Tool _ Error Model KBU24-6 _____ KBU24-6 MWD <0-7500> 7500.00 ISCWSA MWD Basic MWD -ISCWSA - 28 JAN 03 OJH All data is in Feet unless otherwise stated Coordinates are from Slot and ND's are from Rig (Datum #1 87.Oft above mean sea level ) Reference MD's are from Rig, Offset MD's are from Rig Calculation method uses Minimum Curvature method Confidence Limit of 95.45 (1 D) Prepared by Baker Hughes Incorporated • MARATHON Oil Company '~ KU21-7X Ver 1, KU21-7X Ver 1 MARATHON Slot# KU21-7X, Pad 14-6 ~J CLEARANCE LISTING Page 4 Date Printed: 6-Feb-2006 Kenai Gas Field, Cook Inlet, Alaska (Kenai Penninsula) ~/~~ INTEQ C learance Data Reference MD[ft] Reference TVD[ft] Reference North[ft] Reference East[ft] Offset Well Offset MD[ft] Offset TVD[ft] Offset North[ft] Offset East[ft] Angle From Highside de Closest. Approach .Distance it Ellipse Separation [ft] 0.00 0.00 O.OON 0.00E KU13-6 7.10 0.10 47.83S 45.43W -136.5 65.97 65.73 100.00 100.00 O.OON 0.00E KU13-6 107.47 100.47 _47.74S 45.02W -136.7 65.63 64.43 200.00 200.00 O.OON 0.00E KU13-6 207.74 200.73 47.53S 43.99W -137.2 64.77 62.49 300.00 300.00 O.OON 0.00E KU13-6 _308.64 301.61 46.78S 42.57W_ -137.7 63.27 60.17 400.00 400.00 _ O.OON 0.00E KU13-6 408.44 401.36 43.49S 42.67W -135.5 60.94 57.38 500.00 500.00 O.OON 0.00E KU13-6 508.38 501.08 37.60S 45.24W -129.7 58.84 54.87 572.67 572.67 O.OON 0.00E KU13-6 580.33 _ 572.67 31.36S 48.75W -122.8 57.97 53.80 600.00 600.00 O.OON 0.00E KU13-6 607.28 599.43 28.67S 50.58W -119.6 58.14 53.92 700.00 700.00 O.OON _ 0.00E KU13-6 705.47 696.53 16.97S 59.19W -106.0 61.67 57.11 800.00 800.00 O.OON 0.00E KU13-6 802.00 791.11 1.06S 69.97W -90.9 70.54 65.17 900.00 900.00 O.OON 0.00E KU13-6 898.74 885.21 17.66N 82.33W -77.9 85.49 78.88 918.64 918.64 O.OON 0.00E KU13-6 916.82 902.75 21.35N 84.69W -75.8 88.77 81.90 951.44 951.44 O.OON 0.00E KU13-6 948.14 933.08 27.99N 88.82W -72.5 94.92 87.61 1000.00 1000.00 O.OON 0.00E KU13-6 993.87 977.21 38.26N 94.99W -68.1 104.91 96.97 1100.00 1100.00 O.OON 0.00E KU13-6 1086.39 1065.78___ 61.50N 108.16W -60.4 129.04 119.82 1200.00 _ 1200.00 O.OON 0.00E _ KU13-6 1174.69 1148.99 87.59N 121.99W -54.3 158.61 148.21 1300.00 1300.00 O.OON 0.00E KU13-6 1261.53 1229.55 116.73N 136.15W -49.4 192.68 181.18 1400.00 1400.00 O.OON 0.00E _ KU13-6 1348.25 __ 1308.73 148.86N 150.91 W -45.4 230.79 218.18 Offset Wellbore Surve Tool Pro rams Well Wellbore Surve Name _. MD ft Surve Tool Error Model KU13-6 KU13-6 __ MSS <0-5500'> 5500.00 Photomechanical Ma netic Standard All data is in Feet unless otherwise stated Coordinates are from Slot and TVD's are from Rig (Datum #1 87.Oft above mean sea level ) Reference MD's are from Rig, Offset MD's are from Rig Calculation method uses Minimum Curvature method Confidence Limit of 95.45 (1 D) Prepared by Baker Hughes Incorporated ~~ ~J MARATHON Oil Company ~~ KU21-7X Ver 1, KU21-7X Ver 1 MARATHON Slot# KU21-7X, Pad 14-6 I^1 LJ CLEARANCE LISTING Page 5 Date Printed: 6-Feb-2006 Kenai Gas Field, Cook Inlet, Alaska (Kenai Penninsula) Y .1 ~ f ~ J INTEQ C learance Data Reference MD[ft] Reference TVD[ft] Reference North[ft] Reference East[ft] Offset Well Offset MD[ft] Offset TVD[ft] Offset North[ft] Offset East[ft] Angle From Highside de Closest Approach Distance ft Ellipse .Separation [ft] 0.00 0.00 O.OON 0.00E _ KU14X-6 8.00 0.00 55.45S 186.87W -106.5 194.92 194.79 100.00 100.00 O.OON 0.00E KU14X-6 _ 107.92 99.92 _ 55.66S 186.81W -106.6 194.93 194.18 200.00 200.00 O.OON 0.00E KU14X-6 207.77 199.77 55.93S 186.78W -106.7 194.97 193.41 300.00 _ 300.00 O.OON 0.00E KU14X-6 307.62 299.62 56.02S 186.88W -106.7 195.10 192.94 400.00 400.00 O.OON 0.00E KU14X-6 407.42 399.42 55.94S 187.12W -106.6 195.30 192.60 500.00 500.00 O.OON 0.00E KU14X-6 507.42 499.42 55.84S 187.46W -106.6 195.60 192.15 600.00 600.00 O.OON 0.00E KU14X-6 607.17 _599.17 55.84S 187.84W -106.6 195.97 191.88 700.00 700.00 O.OON 0.00E KU14X-6 706.96 698.96 55.92S 188.27W -106.5 196.40 191.72 800.00 800.00 O.OON 0.00E KU14X-6 806.96 798.95 56.10S 188.77W -106.6 196.93 191.53 900.00 900.00 O.OON 0.00E KU14X-6 906.78 898.78 56.30S 189.31W -106.6 197.51 191.46 1000.00 1000.00 O.OON 0.00E KU14X-6 1007.10 999.09 56.52S 189.89W -106.6 198.12 191.45 1100.00 1100.00 O.OON 0.00E KU14X-6 1107.90 1099.89 56.76S 190.26W -106.6 198.55 191.17 1200.00 1200.00 O.OON 0.00E KU14X-6 1208.70 1200.69 57.03S 190.20W -106.7 198.57 190.53 1300.00 1300.00 O.OON 0.00E KU14X-6 1309.24 1301.22 57.34S 189.72W -106.8 198.20 189.53 1400.00 1400.00 O.OON 0.00E KU14X-6 1409.50 1401.49 57.76S 188.93W -107.0 197.57 188.20 1500.00 1500.00 O.OON 0.00E KU14X-6 1509.76 1501.74 58.37S 187.94W -107.3 196.81 186.78 1600.00 1600.00 O.OON 0.00E KU14X-6 1609.49 1601.46 59.15S 186.79W -107.6 195.94 185.28 1700.00 1700.00 O.OON 0.00E KU14X-6 1708.70 1700.66 60.03S 185.78W -107.9 195.24 183.89 1800.00 1800.00 _ O.OON 0.00E KU14X-6 1807.91 1799.86 60.94S 185.17W -108.2 194.94 182.93 1803.73 1803.73 O.OON 0.00E KU14X-6 1811.64 1803.59 60.98S 185.16W -108.2 194.94 182.91 1820.87 1820.87 0.04S _ 0.06E KU14X-6 1828.78 1820.73 61.14S 185.12W 128.6 195.00 182.87 1903.73 1903.68 1.43S 2.19E KU14X-6 1911.44 1903.39 61.92S 184.93W 128.9 196.65 184.07 2003.73 2003.36 5.72S 8.76E KU14X-6 2011.63 2003.58 62.92S 184.74W 130.2 201.77 188.58 2066.93 _ 2066.10 9.91S 15.16E KU14X-6 2074.43 _ 2066.37 _ 63.58S 184.47W 131.5 206.72 193.14 2103.73 2102.50 12.87S 19.68E KU14X-6 2111.38 I _ 2103.31 63.98S 184.29W 132.4 210.28 196.48 2203.73 2200.81 22.84S 34.93E KU14X-6 2210.18 2202.11 65.O6S 183.61W 135.3 222.59 208.18 2303.73 2298.04 35.61S 54.47E KU14X-6 2307.68 ~ 2299.60 66.07S 182.84W 138.6 239.26 224.18 2403.73 2393.91 51.14S 78.24E KU14X-6 __ 2403.82 2395.73 66.89S 182.10W _ 142.1 260.82 245.06 Offset Wellbore Surve Tool Pro rams Well Wellbore Surv Name ____ MD ft Surve Tool Error Model KU14X-6 KU14X-6 GMS <0-9500> 9500.00 Level Rotor G ro Standard KU14X-6 KU14X-6 MSS <9776-10225> 10225.00 Photomechanical Ma netic Standard All data is in Feet unless otherwise stated Coordinates are from Slot and TVD's are from Rig (Datum #1 87.Oft above mean sea level ) Reference MD's are from Rig, Offset MD's are from Rig Calculation method uses Minimum Curvature method Confidence Limit of 95.45 (1D) Prepared by Baker Hughes Incorporated • MARATHON O[I Company ~~~ KU21-7X Ver 1, KU21-7X Ver 1 MARATHON Slot# KU21-7X, Pad 14-6 CLEARANCE LISTING Page 6 Date Printed: 6-Feb-2006 Kenai Gas Field, Cook Inlet, Alaska (Kenai Penninsula) ~.^ INTEQ C __ learance Data Reference MD[ft] Reference TVD[ft] Reference North[ft] Reference East[ft] Offset Well Offset MD[ft] Offset TVD[ft] Offset North[ft] Offset East[ft] Angle From Highside de Closest Approach Distance ft Ellipse Separation [ft] 0.00 0.00 O.OON 0.00E KBU22-6 0.00 0.00 2.84N 61.27W _-87.3 61.33 61.33 0.00 0.00 O.OON 0.00E KBU22-6 0.00 0.00 2.84N 61.27W -87.3 61.33 61.33 16.40 16.40 O.OON 0.00E KBU22-6 16.35 16.35 2.84N 61.28W -87.3 61.35 61.14 _ 100.00 100.00 O.OON 0.00E KBU22-6 99.85 99.85 2.87N 61.35W -87.3 61.42 60.92 200.00 200.00 O.OON 0.00E KBU22-6 199.77 199.77 3.OON 61.59W -87.2 61.67 60.83 300.00 300.00 O.OON 0.00E KBU22-6 299.96 299.95 4.42N 61.88W -85.9 62.04 60.82 400.00 400.00 O.OON 0.00E KBU22-6 400.45 400.07 12.34N 60.49W -78.5 61.74 60.15 426.51 426.51 O.OON _ 0.00E KBU22-6 426.83 426.25 15.48N 59.79W -75.5 61.77 60.07 500.00 500.00 O.OON 0.00E KBU22-6 499.86 498.61 25.06N 57.50W -66.5 62.74 60.72 600.00 600.00 O.OON O.OOE KBU22-6 599.20 596.72 39.95N. 52.85W -52.9 66.33 63.81 700.00 700.00 O.OON __ 0.00E KBU22-6 697.37 693.14 56.92N 45.76W -38.8 73.36 70.28 771.00 771.00 O.OON 0.00E KBU22-6 765.46 759.47 70.74N 39.O6W -28.9 81.63 78.14 800.00 800.00 O.OON 0.00E KBU22-6 793.05 786.15 76.95N 35.83W -25.0 86.01 82.35 900.00 900.00 O.OON 0.00E KBU22-6 884.26 873.26 100.73N 23.08W -12.9 106.74 102.51 1000.00 1000.00 O.OON 0.00E KBU22-6 969.00 952.14 128.24N 8.94W -4.0 137.17 132.40 1100.00 1100.00 O.OON 0.00E KBU22-6 1051.41 1026.90 159.62N 5.74E 2.1 175.65 170.36 1200.00 1200.00 O.OON 0.00E KBU22-6 1127.49 1093.78 192.58N 20.79E 6.2 220.91 215.11 Offset Wellbore Surve Tool Pro rams Well Wellbore Surve Name MD ft Surve Tool Error Model KBU22-6 KBU22-6 MWD <0-8855> 8855.00 Navi Trak Ma Corrected All data is in Feet unless otherwise stated Coordinates are from Slot and TVD's are from Rig (Datum #1 87.Oft above mean sea level ) Reference MD's are from Rig, Offset MD's are from Rig Calculation method uses Minimum Curvature method Confidence Limit of 95.45 (1 D) Prepared by Baker Hughes Incorporated • MARATHON O[I Company 1~~ KU21-7X Ver 1, KU21-7X Ver 1 MARATHON Slot# KU21-7X, Pad 14-6 CLEARANCE LISTING Page 7 Date Printed: 6-Feb-2006 Kenai Gas Field, Cook Inlet, Alaska (Kenai Penninsula) ~ii~ INTEQ C learance Data Reference MD[ft] Reference ND[ft] Reference Not1h[ft] Reference East[ft] Offset Well Offset MD[ft] Offset ND[ft] Offset North[ft] Offset East[ft] _ Angle From Highside de Closest Approach Distance ft Ellipse Separation [ft] 0.00 0.00 O.OON 0.00E ___ KBU31-7 8.01 0.01 __ _ 70.29S 27.59W -158.6 75.51 75.38 100.00 100.00 O.OON 0.00E _ KBU31-7 108.09 100.09 70.21S 27.73W -158.4 75.49 74.77 200.00 200.00 O.OON 0.00E KBU31-7 _ 208.15 200.14 69.85S 28.05W -158.1 75.27 73.93 225.33 225.33 O.OON 0.00E KBU31-7 233.33 225.33 69.74S 28.20W -158.0 75.22 73.79 300.00 300.00 O.OON _ 0.00E KBU31-7 307.52 _ 299.51 69.65S 29.28W -157.2 75.56 73.85 400.00 400.00 O.OON 0.00E KBU31-7 408.22 400.20 69.30S 30.52W -156.2 75.72 73.35 500.00 500.00 O.OON 0.00E KBU31-7 _507.96 499.94 68.82S 31.33W -155.5 75.62 72.59 600.00 600.00 O.OON 0.00E KBU31-7 607.91 + _ 599.88 68.49S 32.29W _-154.8 75.72 72.02 700.00 700.00 O.OON 0.00E KBU31-7 707.71 699.67 68.35S 33.23W -154.1 76.00 71.65 800.00 800.00 O.OON 0.00E KBU31-7 807.88 _ .__ 799.85 68_42S 33.93W -153.6 76.37 71.36 900.00 900.00 O.OON 0.00E KBU31-7 908.01 899.97 68.39S 34.17W -153.4 76.46 70.80 935.04 935.04 O.OON 0.00E KBU31-7 942.81 934.77 68.49S 34.08W -153.5 76.50 70.73 1000.00 1000.00 O.OON 0.00E KBU31-7 1007.30 999.25 69.17S 33.56W -154.1 76.88 70.89 1100.00 1100.00 O.OON 0.00E KBU31-7 1106.68 1098.54 72.10S 30.71W -156.9 78.38 72.05 1200.00 1200.00 O.OON 0.00E KBU31-7 1208.30 1199.81 76.05S 23.40W -162.9 79.57 72.88 1300.00 1300.00 O.OON 0.00E KBU31-7 1310.48 1301.27 77.67S 11.52W -171.6 78.53 71.45 1400.00 1400.00 O.OON 0.00E KBU31-7 1407.48 1397.40 79.01S 1.38E 179.0 79.07 71.56 1427.17 1427.17 O.OON 0.00E KBU31-7 1433.35 1423.01 79.90S _ 4.87E 176.5 80.16 72.53 1500.00 1500.00 O.OON 0.00E KBU31-7 1502.19 1491.07 83.93S 14.39E 170.3 85.62 77.65 1600.00 1600.00 O.OON 0.00E KBU31-7 1598.06 1585.65 93.45S 26.70E 164.1 98.25 89.77 1700.00 1700.00 O.OON 0.00E KBU31-7 1693.26 1679.15 105.78S 39.68E 159.4 114.88 105.87 1800.00 1800.00 O.OON 0.00E KBU31-7 1786.16 1769.64 119.68S 55.40E 155.2 135.33 125.77 _ 1803.73 1803.73 O.OON 0.00E KBU3 1-7 1789.78 1773.15 .120.27S 56.05E 155.0 136.17 126.58 1903.73 1903.68 1.43S 2.19E _ KBU31-7 1879.86 _ 1859.96 136.25S 73.96E 28.4 158.87 148.81 2003.73 2003.36 5.72S 8.76E KBU31-7 1970.14 _ 1945.70 _ 154.81S 95.26E 25.9 181.75 171.20 2103.73 2102.50 12.87S 19.68E KBU31_7 2057.11 2026.84 175.48S _ _ 118.73E 24.3 204.89 193.82 ' 2203.73 _ 2200.81 _ 22.84S 34.93E KBU31-7 2148.33 2110.37 199.23S 146.63E 22.9 227.53 215.87 ' 2303.73 2298.04 35.61S 54.47E KBU31-7 2243.90 2197.09 225.02S 177.43E 22.0 247.36 235.00 2403.73 2393.91 51.14S 78.24E KBU31-7 2341.45 2285.37 252.03S 208.95E 21.8 263.10 249.97 3100.00 3005.35 229.65S 351.33E KBU31-7 3008.30 2884.17 467.15S 404.18E 38.7 271.81 249.87 3200.00 3087.26 261.04S 399.34E KBU31-7 3102.18 2967.26 504.88S 426.24E 43.9 273.10 248.80 Offset Wellbore Surve Tool Pro rams Well Wellbore Surve Name MD ft Surve Tool Error Mod I KBU31-7 KBU31-7Rd MWD <5814-7575> 7575.00 ISCWSA MWD Basic MWD -ISCWSA - 28 JAN 03 OJH All data is in Feet unless otherwise stated Coordinates are from Slot and ND's are from Rig (Datum #1 87.Oft above mean sea level ) Reference MD's are from Rig, Offset MD's are from Rig Calculation method uses Minimum Curvature method Confidence Limit of 95.45 (1D) Prepared by Baker Hughes Incorporated MARATHON Oil Company KU21-7X Ver 1, KU21-7X Ver 1 MARATHON Slot# KU21-7X, Pad 14-8 CLEARANCE LISTING Page 8 Date Printed: 6-Feb-2006 Kenai Gas Field, Cook Inlet, Alaska (Kenai Penninsula) ~L~ INTEQ C learance Data Reference MD[ft] Reference TVD[ftJ Reference North[ftJ Reference East[ft] Offset Well Offset MD[ftJ Offset TVD[ftJ Offset North[ftJ Offset East[ft] Angle From Highside de Closest Approach Distance Ellipse .Separation [ftJ 0.00 0.00 O.OON 0.00E KBU31-7 8.01 _ 0.01 70.29S 27.59W -158.6 75.51 75.38 100.00 100.00 O.OON 0.00E KBU31-7 108.09 100.09 70.21S 27.73W -158.4 75.49 74.77 200.00 200.00 O.OON 0.00E KBU31-7 208.15 200.14 _ 69.85S 28.05W -158.1 75.27 73.93 225.33 225.33 O.OON _ 0.00E KBU31-7 233.33 225.33 69.74S 28.20W -158.0 75.22 73.79 300.00 300.00 O.OON ~ _ 0.00E KBU31-7 307.52 299.51 69.65S 29.28W -157.2 75.56 73.85 400.00 __ 400.00 O.OON 0.00E KBU31-7 408.22 400.20 69.30S 30.52W -156.2 75.72 73.35 500.00 500.00 O.OON 0.00E KBU31-7 __ __507.96 499.94 _ 68.82S 31.33W -155.5 75.62 72.59 600.00 600.00 O.OON 0.00E KBU31-7 607.91 599.88 68.49S 32.29W -154.8 75.72 72.02 700.00 700.00 O.OON 0.00E KBU31-7 707.71 699.67 68.35S 33.23W -154.1 76.00 71.65 800.00 800.00 O.OON 0.00E KBU31-7 807.88 799.85 68.42S 33.93W -153.6 76.37 71.36 900.00 900.00 O.OON 0.00E KBU31-7 908.01 899.97 68.39S 34.17W -153.4 76.46 7 .80 935.04 935.04 O.OON 0.00E KBU31-7 942.81 934.77 68.49S 34.08W -153.5 76.50 70.73 1000.00 1000.00 O.OON 0.00E KBU31-7 1007.30 999.25 69.17S 33.56W -154.1 76.88 70.89 1100.00 1100.00 O.OON 0.00E KBU31-7 1106.68 1098.54 72.10S 30.71 W -156.9 78.38 72.05 1200.00 1200.00 O.OON 0.00E KBU31-7 1208.30 1199.81 76.05S 23.40W -162.9 79.57 72.88 1300.00 1300.00 O.OON 0.00E _ KBU31-7 1310.48 1301.27 77.67S 11.52W -171.6 78.53 71.45 1400.00 1400.00 O.OON 0.00E KBU31-7 1407.48 1397.40 79.01S 1.38E 179.0 79.07 71.56 1427.17 1427.17 O.OON 0.00E KBU31-7 1433.35 1423.01 79.90S 4.87E 176.5 80.16 72.53 1500.00 1500.00 O.OON 0.00E KBU31-7 1502.19 1491.07 83.93S 14.39E 170.3 85.62 77.65 1600.00 1600.00 O.OON 0.00E KBU31_7 1598.06 1585.65 93.45S _ 26.70E 164.1 98.25 89.77 1700.00 1700.00 O.OON O.OOE KBU31-7 _ 1693.26 1679.15 105.78S 39.68E 159.4 114.88 105.87 1800.00 1800.00 O.OON _ 0.00E KBU31-7 1786.16 1769.64_._ 119.68S 55.40E 155.2 135.33 125.77 1803.73 1803.73 O.OON __ 0.00E KBU31-7 1789.78 1773.15 120.27S 56.05E 155.0 136.17 126.58 1903.73 1903.68 1.43S 2.19E KBU31-7 1879.86 1859.96 136.25S 73.96E 28.4 158.87 148.81 2003.73 2003.36 5.72S 8.76E KBU31-7 _ 1970.14 1945.70 154.81S 95.26E 25.9 181.75 171.20 2103.73 2102.50 12.87S _ 19.68E KBU31-7 2057.11 2026.84 175.48S 118.73E 24.3 204.89 193.82 2203.73 2200.81 22.84S 34.93E KBU31-7 2148.33 2110.37 199.23S 146.63E 22.9 227.53 215.87 2303.73 2298.04 35.61S 54.47E KBU31-7 2243.90 2197.09 225.02S 177.43E 22.0 247.36 235.00 2403.73 2393.91 51.14S 78.24E KBU31-7 2341.45 ~ 2285.37 252.03S 208.95E 21.8 263.10 249.97 3100.00 3005.35 229.65S 351.33E KBU31-7 3008.30 2884.17 467.15S 404.18E 38.7 271.81 249.87 3200.00 3087.26 261.04S 399.34E KBU31-7 3102.18 2967.26 _504.88S 426.24E 43.9 273.10 248.80 Offset Wellbore Surve Tool Pro rams Weli Well re Surve Name MD ft Surve To I nror Mod 1 KBU31-7 I KBU31-7 GMS <0-7375'> 7375.00 Level Rotor G ro Standard All data is in Feet unless otherwise stated Coordinates are from Slot and TVD's are from Rig (Datum #1 87.Oft above mean sea level ) Reference MD's are from Rig, Offset MD's are from Rig Calculation method uses Minimum Curvature method Confidence Limit of 95.45 (1 D) Prepared by Baker Hughes Incorporated • MARATHON Oil Company '~ KU21-7X Ver 1, KU21-7X Ver 1 MARATHON Slot# KU21-7X, Pad 14-6 CLEARANCE LISTING Page 9 Date Printed: 6-Feb-2006 Kenai Gas Field, Cook Inlet, Alaska (Kenai Penninsula) ~.. INTEQ C learance Data Reference MD[ft] Reference ND[ftj Reference North[ft] Reference East[ft] Offset Well Offset MD[ft] Offset ND[ft] Offset North[ft] _. Offset East[ft] Angle From Highside de Closest Approach .Distance ft Ellipse Separation [ft] 0.00 0.00 O.OON 0.00E KBU23X-6 5.36 -0.64 188.35S 124.99W -146.4 226.05 225.94 100.00 100.00 O.OON 0.00E KBU23X-6 103.60 97.60 188.85S 125.31 W -146.4 226.65 225.96 200.00 200.00 O.OON 0.00E KBU23X-6 203.88 197.87 _189.74S 125.88W -146.4 227.71 226.36 300.00 _ __ 300.00 _ O.OON 0.00E KBU23X-6 304.06 298.05 190.41S 126.46W -146.4 228.58 226.57 400.00 400.00 __ O.OON 0.00E KBU23X-6 403.67 397.65 191.03S 127.21 W -146.3 229.52 226.85 500.00 500.00 O.OON 0.00E KBU23X-6 504.31 498.29 191.63S 128.02W -146.3 230.47 227.13 600.00 600.00 O.OON 0.00E KBU23X-6 604.82 598.80 192.07S 128.57W -146.2 231.13 227.12 700.00 700.00 O.OON 0.00E KBU23X-6 704.93 698.90 192.47S 128.90W -146.2 231.65 226.98 800.00 800.00 O.OON 0.00E KBU23X-6 805.31 799.28 192.71S 129.29W -146.1 232.06 226.73 900.00 900.00 O.OON 0.00E KBU23X-6 _ 905.23 899.20 192.85S 129.60W -146.1 232.36 226.36 1000.00 1000.00 O.OON _ 0.00E KBU23X-6 1004.85 998.82 193.15S 129.95W -146.1 232.80 226.14 1100.00 1100.00 O.OON 0.00E KBU23X-6 1105.70 1099.67 193.45S 130.19W -146.1 233.18 225.85 1200.00 1200.00 O.OON 0.00E KBU23X-6 1206.96 1200.93 193.56S 130.15W -146.1 233.24 225.27 1300.00 1300.00 O.OON 0.00E KBU23X-6 1312.62 1306.57 191.84S 129.94W -145.9 231.79 223.48 1400.00 1400.00 O.OON 0.00E KBU23X-6 1419.60 1413.42 _ 186.82S 128.76W -145.4 227.29 218.60 1500.00 1500.00 O.OON 0.00E KBU23X-6 1530.93 1524.29 177.05S 126.68W -144.4 219.05 209.95 1600.00 1600.00 O.OON 0.00E KBU23X-6 1640.71 1632.83 161.06S 123.54W -142.5 205.62 196.11 1700.00 1700.00 O.OON 0.00E KBU23X-6 1751.31 1741.06 139.11S 117.74W -139.8 186.81 176.87 1800.00 1800.00 O.OON 0.00E KBU23X-6 1855.97 1842.10 113.O6S 109.91 W -135.8 163.21 152.78 1803.73 1803.73 O.OON 0.00E KBU23X-6 1859.54 1845.52 112.06S 109.63W -135.6 162.24 151.80 1903.73 1903.68 1.43S _ 2.19E KBU23X-6 1960.42 _ 1941.22 _ 81.26S 101.51 W 110.0 136.14 125.22 2003.73 2003.36 5.72S 8.76E KBU23X-6 2057.02 2031.19 47.23S 92.72W 125.7 113.11 101.47 2096.55 2095.41 12.26S 18.76E KBU23X-6 2141.32 2108.30 14.30S 84.02W 146.0 103.61 90.93 2099.74 2098.55 12.53S _ 19.16E KBU23X-6 2144.11 2110.83 13.16S 83.72W 146.7 103.62 90.91 2103.73 2102.50 12.87S 19.68E KBU23X-6 2147.60 ~ 2113.99 11.73S 83.36W 147.7 103.68 90.92 2132.55 2130.92 15.45S 23.64E KBU23X-6 2172.64 2136.66 1.43S 80.71 W 154.4 105.44 92.34 2203.73 2200.81 22.84S 34.93E KBU23X-6 2233.33 2191.18 24.44N 74.22W 169. 119.34 105.53 2303.73 2298.04 35.61S 54.47E KBU23X-6 2314.89 2263.52 60.96N 65.05W -173.7 157.49 142.99 2403.73 2393.91 _ 51.14S 78.24E KBU23X-6 2394.43 2333.61 97.46N 55.96W -162. 209.12 193.98 Surve Tool Pro Offset Wellbore rams Well _ Wellbore _ Surve Name MD ft Surve Tool Er Model KBU23X-6 KBU23X-6 GMS <0-6950'> 6950.00 Level Rotor G ro Standard All data is in Feet unless otherwise stated Coordinates are from Slot and TVD's are from Rig (Datum #1 87.Oft above mean sea level ) Reference MD's are from Rig, Offset MD's are from Rig Calculation method uses Minimum Curvature method Confidence Limit of 95.45 (1D) Prepared by Baker Hughes Incorporated MARATHON O[I Company ~~ KU21-7X Ver 1, KU21-7X Ver 1 MARATHON Slot# KU21-7X, Pad 14-6 CLEARANCE LISTING Page 10 Date Printed: 6-Feb-2006 Kenai Gas Field, Cook Inlet, Alaska (Kenai Penninsula) iNTEQ C learance Data Reference MD[ftj Reference TVD[ft] Reference North[ft] Reference East[ft] Offset Well Offset MD[ftj Offset TVD[ft] Offset North[ft] Offset East[ft] Angle From Highside de Cbsest Approach Distance ft Ellipse Separation [ft] 853.02 853.02 O.OON 0.00E KBU 23-7 865.30 864.85 149.23S 204.71 W -126.1 253.61 249.93 900.00 900.00 O.OON _ 0.00E KBU 23-7 908.08 907.59 148.32S 203.24W -126.1 251.72 247.84 1000.00 1000.00 O.OON 0.00E KBU 23-7 1006.17 1005.65 146.77S 201.13W -126.1 249.05 244.72 1100.00 1100.00 O.OON 0.00E KBU 23-7 1101.86 1101.32 145.51S 200.38W -126.0 247.64 242.92 1200.00 1200.00 O.OON 0.00E KBU 23-7 1201.50 1200.96 144.42S 200.64W -125.8 247.21 242.14 1300.00 1300.00 O.OON _ 0.00E KBU 23-7 1300.89 1300.34 143.58S 200.89W -125.6 246.92 241.48 1335.95 1335.95 O.OON 0.00E KBU 23-7 1336.50 1335.95 143.67S 200.80W -125.6 246.91 241.33 1361.55 1361.55 O.OON 0.00E KBU 23-7 1361.78 ~ 1361.22 143.93S 200.66W -125.7 246.94 241.27 1400.00 1400.00 O.OON _ 0.00E KBU 23-7 1398.50 1397.94 144.51 S 200.43W -125.8 247.10 241.34 1500.00 1500.00 O.OON 0.00E KBU 23-7 1497.00 1496.40 147.22S 199.87W -126.4 248.26 242.24 1600.00 1600.00 O.OON 0.00E KBU 23-7 1589.64 1588.72 154.36S 197.91 W -128.0 251.24 244.96 1689.63 1689.63 O.OON 0.00E KBU 23-7 1675.31 1673.63 165.33S 195.07W -130.3 256.20 249.68 Offset Weilbore Surve Tool Pro rams Well Weilbore Surve Name MD ft Surve Tool Error Model KBU 23-7 KBU 23-7 __ MWD <0-9320> 9320.00 Navi Trak Ma Corrected All data is in Feet unless otherwise stated Coordinates are from Slot and TVD's are from Rig (Datum #1 87.Oft above mean sea level ) Reference MD's are from Rig, Offset MD's are from Rig Calculation method uses Minimum Curvature method Confidence Limit of 95.45 (1 D) Prepared by Baker Hughes Incorporated • MARATHON Oil Company KU21-7X Ver 1, KU21-7X Ver 1 MARATHON Slot# KU21-7X, Pad 14-6 I. J CLEARANCE LISTING Page 11 Date Printed: 6-Feb-2006 Kenai Gas Field, Cook Inlet, Alaska (Kenai Penninsula) ~~ INTEt,~ C learance Data Reference MD[ft] Reference TVD[ft] Reference North[ft] Reference East[ft] Offset Well Offset MD[ft] Offset TVD[ft] Offset North[ft] Offset East[ft] Angle From Highside de Closest Approach Distance ft Ellipse Separation (ft] 0.00 0.00 O.OON 0.00E __ KU 31-7 0.03 0.03 _ 150.29S 0.07E 180.0 150.29 150.29 100.00 100.00 O.OON 0.00E KU 31-7 _ 100.08 100.08 150.26S 0.32E 179.9 150.26 149.86 200.00 200.00 O.OON 0.00E KU 31-7 _ 200.44 200.44 150.12S 0.89E 179.7 150.12 149.49 300.00 300.00 O.OON 0.00E KU 31-7 300.60 300.59 149.74S 1.53E 179.4 149.75 148.94 400.00 400.00 O.OON 0.00E KU 31-7 400.90 400.89 149.23S 2.44E 179.1 149.25 148.10 500.00 500.00 O.OON 0.00E KU 31-7 502.21 502.18 148.34S 4.13E 178.4 148.41 146.83 600.00 600.00 O.OON 0.00E 31-7 KU 604.00 603.89 146.06S _7.43E 177.1 146.30 144.28 700.00 700.00 O.OON 0.00E _ KU 31-7 706.31 705.97 142.26S 12.96E 174.8 142.98 140.49 800.00 800.00 _ O.OON 0.00E KU 31-7 808.32 807.46 136.43S 21.31E 171.1 138.28 135.30 900.00 900.00 O.OON 0.00E KU 31-7 908.81 906.81 128.27S 33.96E 165.2 132.87 129.33 1000.00 1000.00 O.OON 0.00E _ KU 31-7 1007.96 1004.10 118.25S 50.18E 157.0 128.52 124.35 1100.00 1100.00 O.OON 0.00E KU 31-7 1106.94 1100.56 106.17S 68.76E 147.1 126.49 121.65 1113.38 1113.38 O.OON 0.00E KU 31-7 1120.16 1113.38 104.36S 71.41E 145.6 126.45 121.51 1131.89 1131.89 O.OON 0.00E KU 31-7 1138.11 1130.79 101.89S 75.01E 143.6 126.53 121.45 1200.00 1200.00 O.OON 0.00E KU 31-7 1203.38 1193.87_ 92.42S 88.88E 136.1 128.37 122.83 1300.00 1300.00 O.OON 0.00E KU 31-7 1298.00 1284.59 77.43S 111.16E 124.9 136.35 130.16 1328.74 1328.74 O.OON 0.00E KU 31-7 1324.60 1309.92 72.97S 117.97E 121.7 139.98 133.61 1400.00 1400.00 O.OON 0.00E KU 31-7 1389.65 1371.51 61.73S 135.61E 114.5 151.70 144.96 1500.00 1500.00 O.OON 0.00E KU 31-7 1480.96 1457.38 45.66S 162.19E 105.7 173.81 166.68 1600.00 1600.00 O.OON 0.00E KU 31-7 1568.68._ _ 1539.55 30.30S 188.73E 99.1 200.48 193.05 1700.00 1700.00 O.OON 0.00E KU 31-7 1653.53 1617.45 13.61S 217.90E 93.6 233.41 225.58 _ Offset Wellbore Surve Tool Pro rams Well Wellbore Surve Name MD ft Surve Tool Error Model KU 31-7 KU 31-7 MWD <0-5790') ~ 6000.00 ISCWSA MWD Basic MWD -ISCWSA - 28 JAN 03 OJH All data is in Feet unless otherwise stated Coordinates are from Slot and ND's are from Rig (Datum #1 87.Oft above mean sea level ) Reference MD's are from Rig, Offset MD's are from Rig Calcufaiion method uses Minimum Curvature method Confidence Limit of 95.45 (1 D) Prepared by Baker Hughes Incorporated ~~ "I '1 'I " 1-! as iL~ • i .~ ~ ~ a L ....; of ~ I r. ' i f 1 s E •G Q i,, ~ a. U ~ ~ V H j ~ q Lit (!) J ~ ~i U I N W ~ O t ~ `o n Z ~' II .~ ~ Q7 L ~0 U ~ Z N a UJ ~ i '. y 7 ~ ~ _ ~ ti o - ~~ - 0 ~ N k ~, m ~ i ri m N J: N N l ~N Q _.. ......:.......i ..._..'i .._..i ....... _ __ _ ~ M _ ~ a~ - -u;s IPN - O - - ~ ~ ._... i . ~ ...., ..... i 1 ~~~~M: r ~ ?E ,~: i~iV:llli " C ~ u = ~ 0 ~ ~ ~ E m z ui _ ~y ~[t r'~ ~ ~c' L° ^I ~ Oi //-i V 1 ~ N 1 ~ =. r 1 g W 1 Or ~ J E 0 y ~~ N ,~. q ': yy' 'V u~u ~ w~ N ,~ a~ 3 L~ ~~ I ~ o O N I C ~ N I O j Si E 3 i0 O ~ Y ,V O l E i i A I .~ ~ ~ ~ ~ (+ W I I ~.. . c. ~ ~ ~ I o ~ ~_ I ~ t s ., ~- ~ ~ I __ ~ ;' ip O a ~ {. O u I ~ O U1 ~ ~'" lJ rt ~ l I y M ~ N f!) II ~ I I ~. J LlJ li I :D U ' _ I I ~ y t C, tS n ~ C d d s - ~ V A ~ ~" v a L • Marathon Oil Company Well Name: KU 21-7 X Location: Kenai, Alaska. INTEGRATED FLUIDS ENGINEERING PROJECT PLAN Prepared For: MARATHON OIL COMPANY Well KU 21-7X Prepared by: Tony Tykalsky Reviewed by: Hal Martins Presented to: Will Tank February 2, 2006 ~~ Kenai Peninsula, Alaska • ~~ Marathon Oil Company PO Box 190168 Anchorage, Alaska 99519 ATTN: Will Tank Will: Marathon Oil Company Well Name: KU 21-7 X Location: Kenai, Alaska. Enclosed is the recommended drilling fluid program for the KU 2-7 X Well to be drilled this year. The following is a brief synopsis of the program. Overview: Ku 21-7x IS A Sterling development well in the Kenai Gas Field. Major concerns will be maintaining full circulation in the highly porous depleted Sterling sands. Since this sand will be completed conventionally, care should be taken to minimize whole mud losses to the formation and formation damage. Lubricants should not be required for this well, and the recommended LCM is SafeCarb. Products other than those listed in the production formula should not be added without consulting town. Surface Interval: The spud mud will be the standard GellGelex mud. Polypac UL should be added to lower the fluid loss to below 12 cc's API prior to running surface casing. No problems are anticipated in this interval. Production Interval: This interval will be drilled with the standard non-damaging Flo-Pro fluid used on non-excape wells. After drilling out the intermediate cement and 20 - 25 feet of new hole, the well will be displaced to the new fluid. Fluid loss should be maintained @ 5 - 7 cc's API for this interval. SafeCarb concentrations should be maintained at the 30 PPB range using the recommended formula. Completion: The completion will consist of a 5-1/2" completion string cemented in place. Corrosion control will be added to the KCL brine 5-1/2" casing. Tony Tykalsky Project Engineer M-I Drilling Fluids NOTE: This program is provided as a guide only. Well conditions will always dictate fluid properties reauired. i • '~ Marathon Oil Company Well Name: KU 21-7 X Location: Kenai, Alaska. EXECUTIVE SUMMARY ~~~ ; . Our overall goal is no M-I/Swaco HSE incidents while providing fluids and solids control services to our customer. .~ Our goal for KU 21-7X is to remove drill solids from the mud system at a cost of less than $0.42 per pound. i, ~ ~ Our goal for KU 21-7~ is to drill the well at a fluid cost of less than $18.22 per foot with a total volume of fluid used less than 2727 barrels. Use of the MI Swaco centrifuge van for the last five years has provided an estimated savings in dilution and disposal costs to Marathon Oil of over $1,000,000. With ' ^~ continued usage of our equipment, we expect to provide more savings to you during future operations. • • Marathon Oil Company Well Name: KU 21-7 X Location: Kenai, Alaska. Interval Benchmarks and Targets Drilling Intervals Depth Benchmark 1 Benchmark 2 Benchmark 3 Benchmark 4 Interval eft) Fluid cost per foot Volume Usage Solids Removal 0 -1500' < $4.61 ft < 1056 bbls 1500 - 5167' < $23.79 ft < 1671 bbls Total Project Avg. Max. Targets for < $18.22 < 2727 bbls < $0.42 lb o Spills from Centrifug Drilling Van Operation Interval ~~ • ~~ • Marathon Oil Company Well Name: KU 21-7 X Location: Kenai, Alaska. Project Summary Casing Hole Casing Depth TVD Mud Mud Sum Interval Size Size Program System Weight Days Mud Cost (in) (in) (ft) (ft) Solids Control (ppg) 9-5/8" 12-1/4" ~~' 1500' 1500' GeUFloVis Mud 8.6 - 9.4 4 $10,236 ''" .~,µ* ; Screens 150/180 +~" mesh Desilter Q- '~ Centrifuge Van 5-1/2" 8-1/2" 5167' 4887' Flo-Pro 9.0 - 9.2 5 $91,396 w/SafeCarb Screens 230 - 210 mesh Desilter Centrifuge Van 5-1/2" 8-1/2" Completion 5167' 4887' 6% KCl 8.55 2 $3,607 - Utilize all solids control equipment to minimize the build up of drill solids in the system (if possible, centrifuge the surface mud during trips to reduce drill solids). - Condition the mud prior to running casing for all intervals. - Cost does not include any considerations for whole mud losses. ~~ • • Marathon Oil Company Well Name: KU 21-7 X Location: Kenai, Alaska. Product Usage Summary PRODUCT Surface 12-1/4" Production 7" Completion 3-1/2" Total Usage % of Total Cost M-I Bar 0 167 0 167 1.36 M-I Gel 442 0 0 442 3.98 Soda Ash 5 8 0 13 0.25 Caustic Soda 5 17 0 22 1.00 Con or 404 0 3 0 3 4.08 Sodium Meta Bisulfate 11 17 2 30 2.12 Bicarb 5 17 0 22 0.42 Con or 303A 0 0 2 2 1.03 F1oVis 0 134 0 134 29.82 Desco CF 5 0 0 5 0.25 DualFlo 0 100 0 100 9.13 Polypac UL 11 0 0 11 1.86 KCl 0 702 63 765 11.66 K1aGard 0 15 0 15 11.25 SafeCarb 10 0 250 0 250 3.88 SafeCarb 40 0 500 0 500 7.77 SafeCarb 250 0 250 0 250 3.88 Defoam X 0 9 0 9 0.91 En ineer Service 4 5 2 11 ~~ • • '~ Marathon Oil Company Well Name: KU 21-7 X Location: Kenai, Alaska. Offset Well Information KU 21-7X Offset Well History Spud date Well Hole Size MD PPG PV YP FL Comments 11/9/2005 KBU 11-7 16" 187 8.7 7 28 16.0 Build spud mud 1477 9 8 23 9.2 Spud in, drill ahead 1725 9.2 9 20 6.2 Drlg to csg point, sweep hole, POH for surface casing 1725 9.3 8 22 7.4 Run & cement surface casing with no cement losses. 12.25" 2822 9.4 8 18 7.2 Drlg out, displace to FloPro, drlg ahead 4460 9.1 11 18 7.8 Drlg ahead with minimal losses 5080 9.3 11 15 8.6 Short trip, ok drlg of core point 5160 9.4 12 20 7.5 Core #1 5249 9,3 15 20 6.7 Core #2 5449 9,4 15 23 7.0 Drlg ahead, 5585 9.6 17 23 7.3 Drlg to csg point, log well 5585 9.5 16 24 7.0 Recover fish, Run casin & cmt, no losses during cement job. KBU 22-6 16" 182 8.7 14 35 14.6 Build spud mud, spud in. 5/20/05 1550 9.2 14 22 6.4 Drill ahead, 1680 9.2 14 20 7.8 Drlg to csg point, wiper trip Ok, POH 1680 9.2 14 17 9.6 Run 8 cement surface casing, stab out & circulate out heavily contaminated mud 12.25" 3453 9.3 8 11 9.2 Drlg out, displace to FloPro, drlg ahead, sweep hole every 500' 4649 9.4 12 14 8.8 Drlg ahead, sweep hole every 500', adding Mix II for preventative losses. 5338 9.2 14 18 5.8 Lost partial returns @ 4929, spot 50 bbl Icm pill, regain full returns 6032 9.3 14 16 5.4 Lost partial returns @ 5840, continue adding Icm 6530 9.5 15 17 6.0 Drlg to casing td, 6535 9.55 17 19 5.2 Reduce mud weight, pump added Icm pill, run casing. 6535 9.55 17 19 5.2 Cement casing, no mention of losses. • • Marathon Oil Company Well Name: KU 21-7 X Location: Kenai, Alaska. Plans & Procedures ~ COMMUNICATION -The Field Mud Engineer will communicate daily with the In-Town Project Engineer. The Project Engineer will then communicate daily with the rig Drilling Engineer. Communications should be about, but not limited to, fluid properties, hole difficulties, possible changes to the mud program, and proposals to use products not included in the mud program. ~ Whole Mud Losses to the formation - Refer to fluid formulas for maintaining proper bridging material concentration in the mud system while drilling the production intervals. ~ FLUID LOSS CONTROL - In the production interval the API fluid loss will be maintained in the 7 - 9 cc's range. In addition to sufficient fluid loss agent additions, this may require adequate dilution of the mud system in order to keep reactive drill solids to a minimum . It is particularly important to maintain a low hardness (<200 ppm Ca) for effective use of DualFlo, therefore cement contamination should be completely treated as rapidly as possible prior to adding DualFlo to control or reduce fluid loss. NOTE: If additions of DualFlo do not appear to be lowering the fluid loss adequately, then switch to additions of Polypac Supreme SL after consultation with town. ~ LSRV - When drilling with a F1oPro fluid, the low shear rate rheology should be maintained around 30,000 cps. In addition to adequate additions of F1oVis Plus, this will also require keeping reactive drill solids to a minimum in order to reduce or eliminate false and unwanted high LSRV. ~ DRILL SOLIDS -MBT -The MBT should be kept at less than 5 ppb in the production interval through aggressive use of solids equipment and dilution as needed. ~ MIXING CONDITIONS -Whenever possible all treatments to the mud system should be made as pre-mix additions. Polymers and KCl should first be mixed in fresh water in that order and then blended into the active system over one or two circulations as needed. ~ CORROSION - Congor 404 additions should be made daily when drilling with F1oPro fluid in order to maintain a Congor 404 concentration of +/- 2000 PPM. ~ CORRISION - Sodium Meta Bisulfate additions should be made daily as needed with any fluid in the hole. Maintain a DO reading of less than 3 ppm ~ GREENCIDE 25G ADDITIONS - Greencide 25G additions should be made daily when drilling in the production interval, in the range of 5 gallons per day. ~ SOLIDS VAN USAGE -The Solids Van should be used whenever drill solids become un-acceptably high and reduction of drill solids in the mud can be more economically done with centrifuging and dilution then just with dumping and diluting. The weight of the drilling fluid alone should not be the determining condition for when to use the Solids Van. ~ WEIGHTING UP -All increases in mud weight should be accomplished with barite additions. In the production interval, insure chloride concentration is maintained at 30,000 to minimize the need for barite additions. ~~ ~~ • Marathon Oil Company Well Name: KU 21-7 X Location: Kenai, Alaska. Interval Summary -12-1/4" hole 0 -1500' Drilling Fluid System Gel/Gelex Spud Mud Key Products MI Gel /Soda Ash /Caustic Soda / MI Bar / PolyPac Supreme UL /Sodium Meta Bisulfate Solids Control Shale Shakers / Desilter /Centrifuge Van Recommended shaker screens -150 - 180 mesh Potential Problems Lost circulation, drill solids build-up, bit balling, hole cleaning nterval Drilling Fluid Properties Depth Mud Funnel Yield API Drill Interval Weight Viscosity Point Fluid Loss pH Solids (ft) (ppg) (sec./qt) (Ib./100ft~) (ml/30min) (%) 0 -1500' 8.6 - $.4 ~ 60 - 100 25 - 35 < 10 +/- 9.5 < 5% - Treat drill water with Soda Ash to reduce hardness. - Build spud mud with 20 PPB M-I Gel and Gelex as needed. - Add D-D if bit balling occurs. - Condition mud prior to cementing casing to reduce yield point and gel strengths. - Reduce API fluid to less than 12 cc's prior to running surface casing. - Estimated volume usage for interval - 1056 barrels. - Estimated haul off volume - 1749 barrels. Marathon Oil Company Well Name: KU 21-7 X Location: Kenai, Alaska. Interval Summary - 8-1/2" hole 1500 - 5167 Drilling Fluid System. Flo-Pro Fluid Key Products Flo-Vis / DualFlo / KCl / SafeCarb 10, 40, 250 / Caustic Soda / Conqor 404 /Sodium Meta Bisulfate / Klagard Solids Control Shale Shakers / Desilter /Centrifuge Van Recommended shaker screens - 210 mesh Potential Problems Lost circulation, coal sloughing, drill solids build-up, tight hole conditions Interval Drilling Fluid Properties Depth Mud Plastic LSRV API Drill Interval Weight Viscosity 1 min Fluid Loss pH Solids' (ft) (pg) (c •) (cps) (ml/30min) (o o) 1500 - 5167' 9.0 - 9.2 8 -12 30 - 40,000 < 7 +/- 9.5 +/- 7.5 - Use one rig pit to drill out surface casing. In other rig pits, build new Flo-Pro fluid using the enclosed formula. - After drilling out surface casing, displace hole to Flo-Pro fluid prior to running leak off test. - Maintain DO reading of less than 3 ppm with additions of Sodium Meta Bisulfate. - Maintain Conqor 404 concentration of 2000+ ppm. - Maintain adequate concentration of SafeCarb blend to bride off porous Sterling sands (beginning at 3731' MD). - Estimated volume usage for interval - 1671 barrels. - Estimated haul off volume - 2990 barrels. - Condition mud prior to running 5-1/2 completion. NOTE: Follow BOSCO guidelines when adding biocide, oxygen scavenger and corrosion inhibitor. • • '~ Marathon Oil Company Well Name: KU 21-7 X Location: Kenai, Alaska. Production Interval Fluid Formula ~~ ~~,_/- MUDCALC 4.5 -Water-Based Mud Calculation 8-1/2" Interval from 1500 - 5167' Input bescri tion KU 21-7 X Production Formula Mud Wei ht ' 9 Preh drated Gel No Wei ht Material Code MI Bar Preh rated Gel Conc. Wei ht Material SG 4.2 KCI Chloride Wei ht Material Price KCI Wt% 6 Out ut -1 bbl 'Order of Products Concentration Volume Product Addition Field, Ib Lab, m Field, bbl Lab, ml Usa e 1 Water 317.07 317.07 0.906 317.07 2 Soda Ash 0.25 0.25 0.000 0.10 Reduce Hardness 3 Flovis 2.00 2.00 0.004 1.33 Viscosit 4 DualFlo 3.00 3.00 0.006 1.25 Fluid Loss Control 5 Caustic Soda 0.50 0.50 0.001 0.23 H Control 6 KlaGard 4.00 4.00 0.011 3.52 Inhibition 7 Potassium Chloride 20.24 20.24 0.024 8.47 Inhibition 8 Con or 404 2.00 2.00 0.004 1.43 Corrosion Control 9a SafeCarb 10 5.00 5.00 0.005 1.79 Brid in A ent 9b SafeCarb 40 20.00 20.00 0.020 7.14 Brid in A ent 9c SafeCarb 250 5.00 5.00 0.005 1.79 Brid in A ent 10 Sodium Meta Bisulfate 0.50 0.50 0.002 0.56 Ox en Scaven er If losses to the Sterlina become to severe, consider MI Seal Medium 8~ Coarse as a solution. Total 394.8 394.8 Estimated Volume Usa a 1671 Barrels Calculated Mud Wei ht 9.4 Total Chloride 29600 ~~ ~ ~ ~ • ~'~ Marathon Oil Company Well Name: KU 21-7 X Location. Kenai, Alaska. Interval Summary -Completion Procedures Corrosion Control Additive in Casing Well KU 21-7 X Volumes: Casing Volume 4-1/2" I.D. 5.50 x 4.5 x 5167 ft 101.68 barrels Casing Volume 1o1.ss 9.625 x 8.681 @ 1500 ft MD 5.500 x 4.50 @ 5167 ft MD Treatment Procedures. 1. After the 5-1 /2" casing is run and cemented, RIH to casing shoe for cleanout. Circulate hole clean (using pill pit at surface). 2. Build 100+ barrels of 6% KCI brine with one drum Conqor 303A and one sack of Sodium Meta Bisulfate. 3. Displace the drilling fluid by pumping a 20 - 30 barrel FloVis KCI spacer followed by the brine. 4. This procedure will place corrosion control in the 5-1 /2" casing. 1~ ~ • '~ Marathon Oil Company Well Name: KU 21-7 X Location: Kenai, Alaska. HSE Issues HANDLING OF DRILLING FLUID PRODUCTS HEALTH AND SAFETY 1. Drilling crews should be instructed in the proper procedures for handling fluid products. 2. Personal Protective Equipment (PPE) charts should be posted in the pit room, the mud lab, and the office of the Drilling Forman. 3. PPE must be in good working order and be utilized as recommended by the PPE charts. 4. Product additions should be made with the intent to use complete unit amounts of products (sacks, drums, cans) as much as possible in order to minimize inventory of partial units. 5. Insure all MSDS sheets are up to date and readily available for workers to access for information. ENVIRONMENTAL 1. Insure that all product stored outside is protected from the weather. 2. Do not store partial units (sacks, etc) outside if possible. 3. Properly secure all products for shipment between job sites. 4. When transferring fluid and or cuttings from the rig to trucks, insure all hoses are properly secured. 5. When utilizing the centrifuge solids van, insure all hoses and connections between the van and the rig are secure. ^rc CJ.1.~~ • • ~~.'~ Marathon Oil Company - Well Name: KU 21-7 X Location: Kenai, Alaska. Product Health and Safety Reference HMIS HAZARD RATINGS Product Function Health Flammability Reactivity PPE M-I BAR Weighting Agent *1 0 0 E M-I GEL Viscosity control *1 1 0 E GELEX Bentonite Extender 1 1 0 E FLOVIS Viscosifier 1 1 0 E DUAL-FLO Modified Starch 1 1 0 E POLYPAC Fluid Loss Reducer *1 1 0 E XCD Viscosifyer 1 1 0 E HEC Loss Circulation Material 1 1 0 E Safe-Garb F,M,C Bridging and weighting agent *1 0 0 E LO WATE Weighting agent *1 0 0 E Nut Plug Loss Circulation Material *1 1 0 E M-I Seal F, M, C Loss circulation Material *1 1 0 E Mix II F,M,C Loss circulation Material *1 1 0 E DESCO CF Dispersant 1 1 0 E SPERSENE CF Dispersant 1 1 0 E TANNATHIN Dispersant 1 1 0 E VENTROL 401 Surfactant ? ? ? ? SALT (Solar) Densifier 1 0 0 E BROMIDE (Naar) 8~ Brine Solution Densifier 1 0 0 F POTASSIUM CHLORIDE - Shale Inhibitor 1 0 0 E ~~ • • ~~'~ Marathon Oil Company Well Name: KU 21-7 X _ Location: Kenai, Alaska. Product Health and Safety Reference HMIS HAZARD RATINGS Product Function Health Flammability Reactivity PPE CAUSTIC SODA Ikalinity control 3 0 1 X CAUSTIC POTASH pH Modifier 3 0 1 X BORAX Inorganic Borate 1 0 0 E SAPP Sodium Pyrophosphate *1 0 0 E SODA ASH Ikalinity control 1 1 0 E SODIUM BICARBONATE Ikalinity control 1 0 0 E CITRIC ACID pH Adjuster 1 0 0 E BIOBAN BP-PLUS Biocide *2 0 0 J GREEN CIDE 25G - Biocide 3 0 0 J DEFOAM X- Defoamer 1 1 0 J G-SEAL Sized graphite LCM 1 1 0 E KLA-GARD Shale Control agent 0 1 0 J LOBE TEX Lubricant 1 1 0 J D-D CWT Detergent 2 1 0 J Concor 404 Corrosion Inhibitor 1 1 0 J SAFEKLEEN Drilling fluid additive 1 1 0 J sphasol D Shale Inhibitor 1 1 0 J Soltex Shale Inhibitor 1 1 0 J Sodium Meta Bisulfate Oxygen Scavenger 1 1 0 J ~~ • • Marathon Oil Company Well Name: KU 21-7 X Location: Kenai, Alaska. Product Health and Safety Reference HMIS HAZARD RATINGS HAZARDOUS MATERIALS IDENTIFICATION SYSTEM (HMIS) HAZARD RATINGS 4 -Severe hazard 3 -Serious hazard 2 -Moderate hazard 1 -Slight hazard 0 -Minimal hazard * An asterisk next to the health rating indicates that a chronic hazard is associated with the material. HMIS PERSONAL PROTECTIVE EQUIPMENT INDEX A -Safety Glasses B -Safety Glasses, Gloves C -Safety Glasses, Gloves, Synthetic Apron D -Face Shield, Gloves, Synthetic Apron E -Safety Glasses, Gloves, Dust Respirator F -Safety Glasses, Gloves, Synthetic Apron, Dust Respirator G -Safety Glasses, Gloves, Vapor Respirator H -Splash Goggles, Gloves, Synthetic Apron, Vapor Respirator I -Safety Glasses, Gloves, Dust and Vapor Respirator J -Splash Goggles, Gloves, Synthetic Apron, Dust and Vapor Respirator K -Air Line Hood or Mask, Gloves, Full Suit, Boots X -Consult your supervisor for special handling directions ~ • '~ Marathon Oil Company Well Name: KU 21-7 X Location: Kenai, Alaska. Contacts Contact Title a-mail Work Cellular Pete Berga Drilling pkberga@marathonoil.com 907 565-3032 907 231-0663 Marathon Superintendent Will Tank Drilling Engineer wjtank@marathonoil.com 713 296-3273 713 203-8398 Marathon Tony Tykalsky Project Engineer ttykalsky@miswaco.com 907 274-5011 907 227-2412 MI SWACO Bob Myles Warehouse Manager rmyles@miswaco.com 907 776-8680 907 252-4218 MI SWACO Michael Barry Senior Field gratefulmen@hotmail.com 907 260-4666 907 590-3636 MI SWACO Engineer (home) Locke Rooney Field Engineer rooneyl@alaska.net 907 235-0598 907 590-3636 MI SWACO (home) Roland Lawson / Dave Drilling Foremen 907 283-1312 Morris Marathon Responsibilities - MI Project Engineer and will coordinate daily between the Marathon office, rig, warehouse, and the M-I field engineers. - Well progress will be monitored to look for any changes, which will improve the efficiency of the operation or avert trouble. - Field Engineers will monitor and supervise product inventory to include re-palletizing any products for shipment to other locations at the end of the well. - Field Engineers will communicate with office personnel (Marathon & MI SWACO) for approval of any changes in the mud program (including introduction of new products). - Field Engineers will produce a recap at the end of the well based on daily activities. Recap should include any lessons learned that may be used to provide better service on future wells. Lessons learned can include changes in procedures, product additions, equipment usage, and/or utilization of any third party service. • M Marathon MARATHON Oil Company February 16, 2006 State of Alaska Uil & Gas Conservation Commission 333 West 7~' Ave. Ste. 100 Anchorage, AK 99501-3539 Attn: John Norman Dear Mr. Norman: C, P.O. Box 3128 Houston, TX 77253-3128 Telephone 713/629-6600 RECE'IVEp FEB Y 7 2006 Alaska pil $ Gas Cons. Co~-nission Anchorage Attached is the $100.00 check that was inadvertently left out of the permit package for KU 21-7X that was sent out yesterday. Please include this check with the KU 21-7X package. If you have any questions, please contact Will Tank at 713-296-3273. Sincerely, ~n~~ ~~~ Connie Kokoski Sr. Administrative Assistant CJK/ Attachment Check No Check Date Bank Bank No Vendor Marathon Oil Company ACCOUNTS PAYABLE DEPARTMENT Hndlg P. O. Box 22164 t Center t A P bl C 1210033 02/10/2006 NCBAS 7780 5001123 Tulsa, OK 74t2t-2164 on ac e ccts aya Phone: s1s-s25-sos~ HS Ir1v41ce. Nurgber Inuoice Date gocument Pia Reryiit Gomm~Ei Gross Amawt Discawf InvoicelPay Amount L100.00 02/10!2006 190001061 1 TOTAL: 100.00 100.00 100. 100.0 (FOLU ON f'tHFORAiION k3tLOW ANU Ut I AGR GntGn ~ I uts acrvnc ucr~al I uvui ®® ® B ® • ® • • ® ® ° -___..~_....~.v.~_~..~__w_~_~-_..-_...~_..~.._..__.~._._._..._~...~~.._._~..~..~..~_...._ _~.r._~s-_~.~.._._~.__.~~.~..r..---------- ~-------_-_--.~s_._~. =ORM:2501 REV.5/00 ~~ao ACCOUNTS PAYABLE CHECK PAY TO THE ORDER OF ALASKA OIL 8~ GAS. CONSERVATION COMMISSION 333 WEST 7TH AVE STE 100. ANCHORAGE, AK 99501-3 NATIONAL CITY BANK Ashland, Ohio Marathon Oil Company P O Box 22164- Tulsa, OK ;4121-2164 U.S. Funds 66-389/412 GHECKDATE Cr~ECKNUMB~S 02(1012006: 121,4033 VOID AFTER 180 DAYS ~' , ~, , ' r`.gAiCH 4MOUNT IN WORDS WITH NCMEERS ,~ - • • TRANSMITTAL LETTER CHECKLIST WELL NAME ~~jJ Z, l _ ~ ,~ ,, PTD# ~-' a~ ^~ Development Service Exploratory Stratigraphic Test Non-Conventional Well Circle Appropriate Letter /Paragraphs to be Included in Transmittal Letter CHECK ADD-ONS TEXT FOR APPROVAL LETTER WHAT (OPTIONS) APPLIES MULTI LATERAL The permit is for a new wellbore segment of existing well , (If last two digits in permit No. API No. 50- - - API number are , between 60-69) Production should continue to be reported as a function of the original API number stated above. PILOT HOLE In accordance with 20 AAC 25.005(f), all records, data and logs acquired for the pilot hole must be clearly differentiated in both well name ( PH) and API number (50- - -) from records, data and logs acquired for well SPACING The permit is approved subject to full compliance with 20 AAC EXCEPTION 25.055. Approval to perforate and produce /inject is contingent upon issuance of a conservation order approving a spacing exception. assumes the liability of any protest to the spacing exception that may occur. DRY DITCH All dry ditch sample sets submitted to the Commission must be in SAMPLE no greater than 30' sample intervals from below the permafrost or from where samples are first caught and 10' sample intervals through target zones. Please note the following special condition of this permit: Non-Conventional production or production testing of coal bed methane is not allowed Well for (name of welly until after (Company NameZhas designed and implemented a water well testing program to provide baseline data on water quality and quantity. (Company NameZmust contact the Commission to obtain advance approval of such water well testing ro ram. Rev: 1 /25/06 C : \j ody\transm ittal_ch eck I i st WELL PERMIT CHECKLfST Field & Pool KENAI, STERLING 3 GAS -448560 _~ _ __ _ __ Well Name: KENAI UNIT 21_7X _-___ _--.-________Program DEV_ _______ Well bore seg I_] PTD#:2060290 Company MARATH NQIL~O __ __________ InitialClassffype _DEV!_1-GAS___GeoArea _______-______ Unit ______,_ OnlOffShore Qn _____ Annular Disposal Administration j t Petmit_fee attached _ _ _ _ _ _ _ _ _ _ _ _ _ : - - - _ - - _ _ . Yes _ _ _ .. - _ _ 2 Lease number appropriate - - - - Yes - . _ _ 3 Unique well-nameand number - - - - - - - - Yes . _ ' 4 Well located in a-defined.pool - - . _ - - - - Yes . - 5 Well located proper dis#ance_from_drillingunitboundary_ Yes 6 Well located proper dis#ance from other wells_ - - - - - _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ __ _ _Yes _ 7 Sufficient acreage available in drilling unit. - . - - .. - - : _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ Yes - 8 If deviated,is_wehboreplat_included---__________________-_____ ____ Yes. ____.__---___- 9 Ope[a#oronlyaffe~tedparly-:----__-----------------.----- ----Yes.. --- ---- ~ 10 Operator has appropriate bond inforce. - Yes - 11 Permikcan be issued without ~nservation order _ _ . _ _ _ . _ _ Yes - _ _ . Appr Date 12 Permitcan be issued without administra#ive-approval - _ _ _ . _ _ _ . _ _ _ Yes .. - - RPC 212212006 13 Can permit be approved before 15-day-wait_ _ - - _ . _ _ _ Yes _ _ - . _ - - - - - 14 Well located within area and-strata authorized by_Injer~ion Order# (put_1O# in-comments)-(For_ Ni4_ . _ - . 15 All wells within U4_mile area of review identified (For service well only) . . . . . . . . ... . . . . NA_ _ - - 16 Pre-produced injector;. duration of pre production tessthan-3 months-(For service well only) - , NA_ - - . - - _ - _ ~ ACMP-Finding of Consistency-has been issued fo[this project- . - . - - _ - _ NA_ ----- --- Engineering 1 1~ 7 NonGOnven, gas conforms So AS3105,03QQ.1.A) ~.2.A-D) _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ __ _ NA_ - . _____ - - - _ -- - - _ '~ 18 Conductor string provided _ _ _ . Yes _ . 13.318 _@ 12T. - _ _ - 19 Surface casing protects all known-USDW$ - - _ - _ - - Yes - . 20 CMT-vol adequate_t4 circulate_on conductor & surf csg . . .. . . . . . . . ... . . . . . Yes _ - - _ . _ Adequate excess. I 21 CMT VOI adequate-to tie-in long string tosurf csg - - - - - - - - - - - - - - - - - - - - - - - - .Yes - - _ - - - . - . 1, 22 CMT_will coyer all known.Productiyehonzons - - - Yes - _ X23 Casing designs adequate for C, T B &_permafrost_ _ _ . _ _ . _ - . _ . . . . . . . .. . . . . Yes _ _ . _ _ _ _ _ _ _ . - _ . 1, 24 Adequate tankage-or reserve pi# _ _ - .. _ . - - - _ . - -Yes _ . _ . - Glacier_Rig 1. - - - - _ - . X25 If a-re-drill, has-a,10r403 for abandonment been approved _ _ _ _ . NA. _ Near well, . ',26 Adequatewellboreseparationproposed- - - _ - - _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ __ _ _ _ _ - . -Yes _ _ Appr Date I27 If diverter required, does it meet rQgulations_ - - - - _ - - _ _ _ _ .. _ - . - _ - _ _ _ _ _ - - _ No_ . _ _ -Vent line variance approved. _ _ . - - . - . _ _ _ _ _ _ _ - _ _ - _ _ _ _ _ _ _ _ _ _ . WGA 2/2312006 28 Drilling fluid Program schematic & equip list adequate- - - - - - - - - - - - - - - - - - -Yes . _ Max MW.9,4 ppg._ - - _ - , - - . - I29 BOPEs, do they meet regulation - _ _ _ _ . _ _ _ _ .. Yes _ _ 30 BOPE_press rating appropriate; test to_(put prig in comments)_ _ _ _ .. - Yes - Test to 2000 psi. MSP 1163 psi.- 31 Choke manifold complies wlAPl_RP-53 (May 84)- - - - - - - - -- - - - - - - - - - - - - - - - -Yes - - - - - I~32 Work willoccu[wi#houtoperationshutdown___.----_------- ----- - ---Yes- ------- _ .-. .-:-_ ----.- -- _. --- -------- I33 Is presence_of H2S gas probable _ . - No_ - _ _ - - Not an H2S area. _ _ _ _ _ _ _ _ -- -- iii Geology X34 Mechanical condition of wells within AOR verified (For service well Only) - . _ _ _ _ _ - NA- - - - . _ _ -_ ___ __ - ... _` '~i35 Permit can be #sued w!o hydr_ogen. sulfide measures _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ ... - _ Yes _ _ _ _ _ _ - .... _ - - _ - - _ . _ _ _ Appr Date 36 Data presented on- poten#ial overpressure Zones - . - _ - NA- RPC 212312006 37 Seismic analysis of shallow gas zones- - - - - - - - - - -- - - - - - - - - - - - - - - - tJA _ - _ X38 Seabed conditionsurvey_(ifoff-shore)---_-__-_--_- -.___..__-__ _.--_~-- ... Geologic Commissioner: Engineering Public Date: Commissioner: Date Commissioner D~5 z J z3~6 ~~~~ Z~3-o6 Z.23_a>6 a Well History File APPENDIX Information of detailed nature that is not • particularly germane io the Well Permitting Process but is part of the history file. To improve the readability of the Well History file and to sirnpl'tfy finding information, information of this nature is accumulated at the end of the file under APPENDIX. No special effort has been made to chronologically organize this category of information. .n C~,`CL~GS~D ~ ,-T- a , c .. ~. ~~~'r ~~uuauidruiia~ui~Au o~_oa~ KU 21-7 X SEC 6 T4N R11W SM Final Well Report EPOCH ao 6, o a-~] • KU 21-7X SEC 6 T4N R11W SM March 15, 2006 -March 22, 2006 Craig Silva: Senior Logging Geologist John Lundy: Logging Geologist ~~ EPOCH • M MARATHON OIL COMPANY KU 21-7X • • TABLE OF CONTENTS 1 MUDLOGGING EQUIPMENT AND CREW ...................................................................................................2 1.1. EQUIPMENT SUMMARY .......................................................................................... ..2 1.2. PERSONNEL ...............................................................:............................................. .. 2 2. GENERAL WELL DETAILS .............................................................................................................. .............3 2.1. OBJECTIVES ............................................................................................................. .. 3 2.2. WELL RESUME ........................................................................................................ ..3 2.3. HOLE DATA .............................................................................................................. ..3 3. GEOLOGICAL DATA ......................................................................................................................... .............4 3.1. L/THOLOGY REVIEW ............................................................................................... ..4 4. DRILLING DATA ................................................................................................................................ ...........10 4.1. DAILY ACTIVITY SUMMARY ................................................................................... 10 4.2. SURVEY RECORD ................................................................................................... 15 4.3. MUD RECORD ......................................................................................................... 18 4.4. BIT RECORD ............................................................................................................ 19 4.5. DRILLING PROGRESS CHART .............................................................................. 20 DAILY REPORTS APPENDIX I FORMATION LOGS APPENDIX II DRILLING DYNAMICS LOGS APPENDIX III ~~ EPOCK 1 MARATHON OIL COMPANY KU 21-7X 1 MUDLOGGING EQUIPMENT AND CREW 1.1. EQUIPMENT SUMMARY Parameter Equipment Type And Position Total Downtime Comments Ditch Gas Standard Air Drive Trap Mounted In Possum Belly; FID Total Hydrocarbon Anal zer And Chromato ra h 0 Rate of Penetration (ROP) Primary Drawworks Shaft Encoder On Drum Shaft 0 Pump stroke counter Externally Mounted Magnetic Proximity Sensor 0 Hookload /Weight on bit (WOB) Hydraulic Pressure Cell 0 Drill string torque Digital Signal From Top Drive 0 Top drive rotary (RPM) Non-Functional on Glacier #1 0 Standpipe Pressure Hydraulic Pressure Celt 0 Mud flow in /out (MFI / MFO) MFI Derived From SPM / MFO From Flow Paddle 0 Pit volumes Ball Float Pit Sensors In All Pits And Tri Tank 0 Driller's work station Explosion Proof Touch Screen 0 Casing Pressure Hydraulic Pressure Cell 0 Company man's work station HP COMPAQ 0 Toolpusher's work station HP COMPAQ 0 Geologist's work station HP COMPAQ n/a Pit's work station Explosion Proof Touch Screen 0 1.2. PERSONNEL C~ Unit Number: ML006 KU 21-7X Mudloggers Years Experience Days at well Sample Catchers Days at well Technician Days at well Craig Silva 27 16 Justin Schrader 11 Steve Forrest 1 John Lundy 14 14 Patrick Walker 5 Howard Lamp 1 EPOCH ~~ 2 M MARATHON OIL COMPANY KU 21-7X 2. GENERAL WELL DETAILS 2.1. OBJECTIVES The objective of KU 21-7X is to successfully drill and log a Development Gas well in the Kenai Gas Unit (Sterling Pool), with a minimum of hole or other problems, and then follow Marathon production procedures until a 7" tubing head is in place and tested. The completion will be performed with a coil tubing unit. 2.2. WELL RESUME Operator: MARATHON OIL COMPANY Well Name: KU 21-7X Field: Kenai Gas Field County: Kenai Peninsula Borough State: Alaska Company Representatives: Rowland Lawson John Nicholson Dave Morris Location: 484' FSL 1330' FWL Sec.6 T4N R11W SM X=272250.76 Y=2362523.31 Classification: Development Gas API #: 50 -133 - 20558 - 00 Permit #: 206-029 Activity Code: (WBS #s) DD.06.13353.CAP.DRL, DD.06.13353.CAP.CMP Rig Name /Type: Glacier #1 /Land /Double Elevation: Ground, RKB 66.25' GL, 87.25' RKB 'rimary Target: /Target Depth: Sterling B-5 / 4260' condary Targets: /Target Depths: Sterling A-8 / 3626' Sterling B-3 / 4008' Sterling B-4 / 4066' Spud Date: March 15, 2006 Total Depth 5032' Total Depth Formation: Beluga Total Depth Date: March 22, 2006 MWD Company: /Tools Run: Baker Hughes Inteq /Directional MWD Directional Drilling: Baker Hughes Inteq Drilling Fluids Company: M-I Drilling Fluids Logging Companies: Precision Wireline Services: Quad-Combo logging suite on shuttle 2.3. HOLE DATA KU 21-7X Hole Maximum Depth T D Mud Deviation Shoe Depth F.I.T. Section MD SSTVD Formation Weight (°inc) Casing MD SSTVD EMW 12 %." 1540' 1453.35' Sterling 8.9 0.7 9 6/S" 1525' 1438.65' 14.1 8 %" 5032' 4798.20' Belu a g 9.2 4.8 5'/z" 5022' 4788.04' Standard Completion • ~~ EPOCH 3 M MARATHON OIL COMPANY KU 21-7X 3. GEOLOGICAL DATA 3.1. LITHOLOGY REVIEW Sand/Sandstone (1540'-1700') =dark to medium gray; moderate brownish secondary hue; soft to disaggregated; clay matrix of sand is soluble and sand quickly disintegrates; moderately well to poorly sorted; fine upper to fine lower, coarsens with increasing depth to 1600' then becomes finer; spotty to locally abundant medium to coarse angular to subangular discoidal to subdiscoidal lithic fragments; common clear to translucent to smoky quartz and clear volcanic grains; trace to common dark gray to black mafic mineral and lithic grains; trace to common fine brown to rust grains; trace pink, yellow, green and blue gray grains; apparently predominantly grain supported; trace ashy matrix material. Tuffaceous Claystone (1600'-1740') =medium to light gray with faint bluish gray secondary hue; soft to slightly firm; dull earthy luster; clayey to slightly gritty texture; trace microsparkly luster due to very fine volcanic glass shards; hydrophilic; easily washes away in wash water; moderately cohesive; slightly adhesive; occurs as moderately massive to thin interbeds in the sand section; grades to clayey/sandy tuffaceous siltstone; non to very slightly calcareous. Sand/Sandstone (1700'-1840') =dark to medium gray; slight brownish secondary hue; soft to disaggregated; clay matrix of sand is soluble and sand quickly disintegrates; moderately well to poorly sorted; fine upper to fine lower grain, increasingly silty/clayey through this section; moderately well to well sorted in the sand size range; becoming more predominantly matrix supported; angular to subangular; discoidal to subdiscoidal to subspheroidal grains; grading to very sandy tuffaceous siltstone with depth; dominantly composed of medium to dark gray lithics; common to abundant clear to milky and smoky quartz and volcanics; common dark gray to black mafic mineral/lithic grains; trace dark gray/brown carbonaceous sand; trace pink, green, light blue gray, yellowish brown grains; note trace to spotty well distributed very distinctive "rust" orange colored volcanic lithic grains. Tuffaceous ShalelTuffaceous Claystone (1800'-1850') =overall trace presence but abundant in this interval; very prominent lithology contrast against the very pervasive sand; homogeneous dark gray with almost no secondary colorations; most is moderately firm, and very obviously has not been mixed or interbedded with sand during deposition; very clayey to borderline silty and ashy texture; earthy luster; initially appears very massive, but slight fissility on closer inspection; sub-splintery to sub-platy to irregular cuttings habit; generally the more splintery the appearance, the better developed the fissility. Sand (1840'-2400') =very homogeneous overall appearance; dark gray to grayish black (when wet) with strong olive black secondary and faint brownish black secondary hues; as cuttings dry the lightness value increases to medium dark gray to medium with olive gray and brownish gray secondary hues; note that there are many other faint or very faint secondary hues (mostly derived from the variety of greenstone lithics) that include grayish green, greenish gray, yellowish gray, moderate yellowish brown and rare light bluish gray; contrasted against all of the darker greenish gray lithics fraction are trace to spotty, but well distributed, very distinctive orange to "rust orange" to reddish orange volcanic rock fragments; when cuttings are dry, the quartz fraction is more prominent, and the samples have the rough appearance of "dirty pepper with a little bit of salt' ; note that the grayish black coloration is derived from increased fraction of argillite-phyllite lithics. Sand (1840'-2400') =very fine lower to coarse lower; trace grains to coarse upper in some basal zones; moderately well sorted overall, with the dominant size mode in fine tower to fine upper; very fine fraction has high content of glass shards, suggesting significant winnowing out of the volcanic ash; consistent rare to trace medium upper and larger grains "floating" throughout the finer sand and subtly increasing in abundance downward (in more massive, thicker sands) suggests a second mode; dominantly angular to subangular, and discoidal to subdiscoidal; consistent trace-5% (and locally to 10%) of sub-rounded to rounded and subspherical to spherical grains; almost 100% disaggregated, but trace consolidated pieces weakly held together by tuffaceous clay and ash; note that most large volcanic glass grains are very sharp and angular, while large quartz grains are often rounded. ~~ EP4CH 4 "M MARATHON OIL COMPANY KU 21-7X Sand (1840'-2400') =all compositional graywacke (>30% lithics); estimate 20-70% quartz and volcanic glass, trace feldspar, trace-5% various forms of cryptosilica dominated by chalcedony and chert, 30-80% lithic rock fragments and mafic minerals; some of the lighter colored sand is borderline lithic arenite; lithics fraction is dominated by grayish green, medium to dark green and variegated green colored low grade metamorphic greenstone rock fragments, followed by a smaller, but still abundant, fraction of grayish black to dark gray medium grade meta argillite and phyllite rock fragments; remaining lithics fraction (>10%) are from diverse sources; note that the coarsest sands generally display increasing lithics diversity; distinctive rare to trace chlorite mica, greenish yellow epidote, yellow citrine quartz ,rose quartz and red low grade jasper; all other grains are contrasted by "rust orange" to reddish orange lithic volcanic rock fragments; mafic minerals are black augite, trace brown color phase biotite and other indeterminate mostly black colored minerals; note that 70% of the quartz is colorless, very pale brown, very pale grayish orange and very pale gray and translucent; 30% of the quartz and nearly 100% of volcanic glass is colorless and transparent. Tuffaceous ClaystoneITuffaceous Shale! Tuffaceous SiltstoneNolcanic Ash (1850'-2700') =all volcanic ash derived lithologies share many characteristics, are all closely gradational to each other, and taken together comprise a sometimes sandy/silty tuffaceous mudstone with slight highly localized variations in texture and composition; most prominent group within the mudstone is the claystone/shale (described above at 1800'): that is homogeneous medium to dark gray with almost no secondary colorations, moderately firm, displays little mixing or interbedding with sand during deposition, has very clayey to slightly silty/ashy texture, earthy luster, sub splintery to sub platy to irregular cuttings habit, and though outwardly massive, displays a subtle fissility on close inspection. a second major tuff mudstone group consists of claystone-shale-siltstone with mixed mottled appearance: that is dominant medium light gray to dark gray, but also displays a wide range of associated gray and brown colors and secondary hues; trace tuffaceous claystone/shale has very faint bluish gray to greenish gray secondary hue; soft to slightly firm or slightly brittle; also massive and sub fissile claystone/shale like first group, but "shaliness" determined more by presence of carbonaceous-organic material and separation along carbonaceous laminations than by overall shale structure; second mudstone group is siltier, ashler, and sandier overall, also locally carbonaceous in part; cuttings habit is irregular to sub blocky to occasionally sub platy; the third major group of the mudstone is the soft clayey fraction that is also apparent supporting matrix of the disaggregated sand grains: this fraction is soluble, hydrophilic, slightly sticky, has poor to fair adhesiveness, poor cohesiveness, has mixed clayey-silty-ashy to various soft matte and mottled textures, earthy luster and often has "floating" sand grains and coal particles. overall the tuffaceous mudstone is non to slightly calcareous, but the sandiest firmer claystone-siltstone that is close to very clayey-silty sandstone has some minor calcite cementation; note that of the largest tuff mudstone cuttings pieces display tiny soft sediment rip-up clasts. Coal (2560'-2720') =black to brownish black; brittle and fragile to brittle and tough; dense matte to smooth texture and dull to sub vitreous to minor vitreous and resinous lustre; lignite to sub bituminous; lower grade lignite grades and otherwise closely associated with carbonaceous shale; note some cleating in higher grade coal; dominant irregular to platy fracture; very minor sub conchoidal to conchoidal fracture; clastic coal is a trace lithic constituent of sand. ~~ EPOCH 5 M MARATHON OIL COMPANY KU 21-7X Tuffaceous ClaystonelTuffaceous ShalelTuffaceous siltstone (2700'-3000') =very abundant fraction of the mixed composition and occasionally mottled appearing non-homogenous mudstone group described above at 2500'; medium light gray to medium dark gray, but wide range of gray and brown colors and secondary hues; note local fractions of tuffaceous claystone and especially tuffaceous shale that have a distinctive very faint greenish gray secondary hue; all of the tuffaceous mudrocks grade to tuffaceous siltstone in part; soft to slightly brittle to moderately brittle, and soft to slightly firm to moderately firm; massive and structureless to slightly shalt'; shalier fraction is generally sub fissile, but trace amount has a "cleaner" shale structure and tends to separate in planar fashion; softer claystone is hydrophilic, soluble and displays poor to fair adhesiveness and poor cohesiveness; clayey to ashy to silty to various mixed, mottled textures and also various soft matte textures in the more clay-rich mudrocks; earthy to dull luster; locally microsparkly when shard or micro-mica content is high; generally non- calcareous, but some of the sandier tuff siltstone is slightly calcareous; tuffaceous mudrocks with carbonaceous particles and laminations are not well distributed, but abundant when adjacent to coals; subplaty to subsplintery habit when firm or brittle. SandlTuffaceous Sandstone (3000'-3200') =medium to light gray with a slight brownish secondary hue; soft to slightly firm to occasionally firm; poorly sorted over all with some moderately well sorted interbeds; angular to subangular to subrounded; medium upper to medium lower grain overall with some better sorted fine grain interbeds; trace coarse and occasional angular pebble fragments; unconsolidated in the upper portion of the interval trending to moderately well indurated very tuffaceous material as depth increases; where present, matrix is a very ashy clay; matrix is moderately to very hydrophilic and where clay predominates is easily washed away in wash water; predominantly clear to translucent quartz and volcanic glass; abundant to common dark gray to black mafic mineral or lithic fragments; common brown to rust colored chert/microcrystalline quartz and volcanic fragments; trace to common rose, yellow, blue gray and green fragments; trace to common bright goldfish brown or bright brownish yellow mica flakes; very slightly to non calcareous. Coal (3000'-3040') =black to brownish black; hard to moderately hard; tough to brittle; slightly shalt' through out, grading to brownish black carbonaceous shale; slight resinous luster in part; smooth to slightly grainy texture; lignitic to sub-bituminous; angular irregular to tabular fragments; some poorly developed conchoidal fracture in denser material; occurs as thin interbeds with associated sand and siltstones. Tuffaceous claystone/siltstone (3100'- 3300') =medium to light gray with a slight to occasionally pronounced brownish secondary hue; slightly firm to soft to firm and occasionally moderately hard globular to blocky and irregular cuttings display pronounced to moderate erosion from circulation; dull earthy to occasional slightly microsparkly luster; clayey to sandy texture grading to very sandy tuffaceous siltstone; trace to common dark brown silty carbonaceous shale interbeds; moderately adhesive; moderately cohesive to very hydrophilic in part; non to very slightly calcareous. Ash/Tuff (3200'-3240') =very light gray to white; moderately firm to soft; mottled with light gray; abundant fine volcanic glass shards; traces of dark mafic minerals that are clastic remnants of inclusions in the original air fall vitriclastic ash; trace mica flakes of brilliant yellowish brown color phase biotite or possibly phlogopite; sandy in part; non to very slightly calcareous. SandlTuffaceous sandstone (3200'-3700') =medium to light gray with a slight brownish secondary hue; soft to slightly firm to occasionally firm; moderately well sorted; angular to subangular to sub rounded; fine upper to medium lower grain overall with some better sorted fine grain interbeds; trace medium upper generally very tuffaceous with occasional thin clean-looking interbeds; note progressively thicker very silty tuffaceous beds through interval; matrix material is very ashy clay; matrix is moderately to very hydrophilic, and where clay predominates is easily hydrated; individual grains are predominantly clear to translucent quartz and volcanic glass; abundant to common dark gray to black mafic mineral or lithic fragments; common brown to rust colored volcanic rock fragments; pervasive minor fraction of cryptosilica; trace to common rose, yellow, blue gray and green fragments; trace mica flakes of brilliant yellowish brown color phase biotite or possibly phlogopite; very slightly to non calcareous. ~~ EPOCH 6 ~ MARATHON OIL COMPANY KU 21-7X Tuffaceous Claystone/Siltstone (3300'- 3560') =medium to light gray with a slight to occasionally pronounced brownish secondary hue; slightly firm to soft to firm and occasionally moderately hard globular to blocky and irregular cuttings display slight to moderate erosion from circulation; dull earthy to occasional slightly microsparkly luster, clayey to sandy texture grading to very sandy tuffaceous siltstone; trace to common dark brown silty carbonaceous shale interbeds; trace very thin carbonaceous microlaminations becoming more common and slightly thicker as depth increases; generally moderately adhesive moderately cohesive to very hydrophilic in part; non to very slightly calcareous Tuffaceous Claystone/Siltstone (3560'-3600') =medium to light gray with a slight to occasionally pronounced brownish secondary hue; firm to very firm to soft and occasionally moderately hard globular to blocky and irregular cuttings display slight to moderate erosion from circulation; dull earthy to occasional slightly microsparkly luster; clayey to sandy texture grading to very sandy tuffaceous siltstone; trace to common dark brown silty carbonaceous shale interbeds; moderately adhesive; moderately cohesive; non to very slightly calcareous. Tuffaceous ClaystonelTuffaceous ShalelTuffaceous SiltstoneNolcanic Ash (3560'-4000') =overall mudstone of volcanic ash derived lithologies, all of which are closely gradational to each other, and share many characteristics; nearly all the mudstone rocks display a mixed composition, are often mottled entirely or in part, and (since many of the samples are have roughly equal fractions of each lithology type} are evidently thinly bedded and interbedded; generally non-homogeneous, but some of the claystone- shale has a homogeneous "undisturbed" appearance with unchanging color and texture; dominantly medium light gray to medium dark gray, but note wide range of gray and brown colors and secondary hues; localized fractions of tuffaceous claystone and especially tuffaceous shale have a distinctive very faint bluish gray of greenish gray secondary hue; some of the volcanic ash has taint pale yellowish gray or very pale orange secondary hue; soft to slightly brittle to moderately brittle, and soft to slightly firm to moderately firm; massive and structureless to slightly shaly; shaly fraction is very dominantly sub fissile, but minor amount has a discernible shale structure and tends to separate in planar fashion; softer claystone is hydrophilic, soluble and exhibits poor to fair adhesiveness and poor cohesiveness; clayey to ashy to silty to various soft matte textures, and also many mixed, mottled textures; some of the clay-rich mudstones have a very "smooth" clayey texture; earthy to dull luster; locally can be microsparkly when the content of glass shards and/or micro-mica is high; nearly all is non calcareous, except for some of the sandy tuffaceous siltstone (gradational to ashy-clayey sandstone) which can be moderately calcareous; carbonaceous particles and laminations are more common when adjacent to coals, but can be observed throughout the interval; tuffaceous mudrock cuttings have an irregular sub splintery to sub platy habit when firm or brittle; note abundant cuttings pieces have "floating" sand grains, shards or other sediment particles; most of the tuff mudrock is silty in part, and the silt fraction is often concentrated in rough " streaks" with the rock; not that some of the largest cuttings pieces display tiny soft sediment rip-up clasts. Sand/SandstoneNery Coarse Sand (3700'-4025') =medium light gray to medium gray with faint light brownish gray and light olive gray secondary hues; very fine upper to very coarse tower; significantly poorer sorting than sands in higher intervals; mostly in fine upper to coarse upper range; dominantly angular to subangular, but larger fraction of subrounded and subspheroidal than observed above; dominantly disaggregated, but spotty pieces of consolidated sandstone with mixed matrix of volcanic ash- tuff clay-silt and minor calcareous cementation; soft consolidated pieces have many claystone characteristics; brittle sandstone has fair to good visible porosity (water passes quickly through dry pieces); very dominantly disaggregated; mostly lithic arenite, but ranges from sublithic arenite to compositional graywacke. ~~ EPOCH M MARATHON OIL COMPANY KU 21-7X Sand/SandstoneNery Coarse Sand/Tuffaceous Sandstone (4100'-4460') =note that the overall character of the sands has changed slightly after the lost circulation zone: there are significantly more discreet consolidated pieces in the samples; overall grain size has increased and the relative fraction of upper end coarse and very coarse grains has also increased; overall sorting is poorer (though some local moderately sorted medium upper to coarse lower sand); sandstone has a greater overall variation of matrix support, and in particular more interstitial silt, mica and micro mica is discernible; when present, grain supported sandstone with calcite cementation appears fairly "clean", is friable and has mod to good visible porosity; overall color is has more of a brownish coloration, light medium gray to medium gray primary color has a dominant light brownish gray secondary color over the light olive gray or greenish gray; though greenstone lithics are increased the greenish color is offset by brownish silt and mica; very distinctive reddish orange still present and well distributed, but less abundant then previous; also many of the larger volcanic lithic fragments appear more porous and less dense than before; in general the lithics fraction is more diverse; the quartz fraction has an increase in the relative amount of clear versus translucent grains; overall the consolidated sandstone pieces are more calcareous than previous; overall there is more associated adjacent sandy siltstone; fining upward is more obvious in the thicker sand sections. Sand/SandstoneNery coarse Sand/Tuffaceous Sandstone (4100'-4460') =medium light gray to medium gray; often has mottled appearance when supported by light gray ash; pervasive faint to strong light brownish gray secondary hue, and also occur faint light olive gray secondary hue; very fine lower to very coarse lower; minor very fine fraction is 99% glass shards winnowed from volcanic ash and minor fine is mix of reworked "macroshards" and quartz grains; mostly poor to moderately sorted in medium lower to coarse upper range; trace to spotty very coarse; dominant angular to subangular grains overall, but common rounded coarse grains; abundant disaggregated, many variations of matrix and grain supported sandstone; most sandstone is matrix supported by volcanic ash derived soft sediments, and significant fraction has some secondary talc cement; tuffaceous and "non-tuffaceous" sandstone have most of the same characteristics, with exception that tuff type has much greater matrix volume; tuff sandstone often grades to very sandy tuff claystone; sublithic arenite to compositional graywacke, but very abundant lithic arenite; overall diverse lithics dominated by greenstones. Sand/SandstoneNery Coarse Sand/Tuffaceous Sandstone (4100'460') =note another overall subtle change in sand group characteristics after 4460'. There is an increase in disaggregated sand grains and a decrease in tuffaceous sandstone; the overall color is the same dominant light medium gray but is slightly less of the faint light brownish gray secondary hues; also the overall sand looks slight less mottled, has less contrast of light and medium gray, and though still partially mottled by volcanic ash supporting material, maintains a more homogeneous appearance; sorting is generally poor, and locally very poor, and often the grain size distribution is fairly even; note that fining upward is more easily discernible; much of the soft tuffaceous sandstone has characteristics in common with tuff clay-volcanic ash; consolidated sandstone is nearly all friable and fragile; pieces of firmer, "crunchier" sandstone often has moderate to good visible porosity; trace consolidated sandstone with calcite cementation has com black mafic mineral. Tuffaceous Sandstone (4460'800') = note significant amount is borderline to very sandy tuffaceous claystone; the supporting matrix is rarely "clean" volcanic ash, but is instead a mix of ash, clay, silt, mica, particles of devitrified ash, microscopic grains of calcareous tuff and minor calcite cement at grain contact points; when the matrix volume is abundant the tuffaceous sandstone has many clay characteristics: soft, soluble in part, slightly expansive when hydrated; medium light gray; commonly with faint grayish orange or yellowish brown secondary hues; very fine lower to rare granule; mostly in fine upper to coarse upper range; very fine fraction is 99% glass shards winnowed from volcanic ash; very coarse to granule grains are dominant lithic clasts; poorly sorted overall, but the uppermost zones of massive sections are usually moderately sorted; angular to subrounded; discoidal to subspheroidal; most very coarse to granule size clasts are rounded; sublithic arenite (in upper zones) to compositional graywacke (in basal zones); the lithics fraction is dominated by greenstone and argillite-phyllite meta-lithics. ~~ EPOCH $ M MARATHON OIL COMPANY KU 21-7X AshITuff (4800'-5030') =very light gray to white; soft to slightly firm; sandy to very sandy in part; grades to and interbedded with associated tuffaceous sandstone and siltstones; trace to abundant clear to light gray volcanic glass shards; trace to common dark mafic minerals and micas (former inclusions); very slight to slightly calcareous; overall percentage of ash increasing down section. Coal (4840'-5032') =very dark gray brown to black; firm to slightly firm; lignitic grading to sub bituminous; brittle; hackly; angular to slightly blocky irregular fragments; some fragments have poorly developed conchoidal fracture; common cleats; trace woody characteristics in some coal. Sand/Tuffaceous Sandstone (4800'-5032') =very light gray; soft to slightly firm to occasionally moderately firm; subangular to angular to sub rounded; irregular to sub spheroidal grains; dominantly fine lower to fine upper, and coarsening downward; composed of clear to translucent quartz and clear volcanic glass grains with minor dark gray to black mafic mineral and lithic grains; trace fine grain clastic coals; coarser sands have thin, fine to very fine grain clean-looking very friable sandstone interbeds; trace clean tuffaceous claystone and siltstone interbeds grading to sandstone; primarily matrix supported in light to very light gray to white ash/clay; matrix is very hydrophilic and easily washes away in wash water; trace to common thin tuffaceous claystone/siltstone and thin coal interbeds; cuttings fragments of sandstone are slightly calcareous. SAMPLING PROGRAM AND DISTRIBUTION KU 21-7X Set T e and Pur ose Interval Fre uenc Distribution Marathon Oil Company c/o C & M Storage, Inc. 20' 3311 S U.S. Highway 77 A Washed and Dried 1540'-5032' Intervals Schulenburg, TX 78956 Attn: David Brimberry 713 296 2265 B C SEQUENTIAL BOX INTERVALS : 1540-2200, 2200-2800, 2800-3400, 3400-4000, 4000-4600, 4600-5032 TD ~ EPOCH 9 M MARATHON OIL COMPANY KU 21-7X 4. DRILLING DATA 4.1. DAILY ACTIVITY SUMMARY 03/11/2006: Begin rig down and move of some Glacier No.1 rig modules, rig equipment and support trailers to the very close KU 21-7X location on the 14-6 Pad after the EXCAPE completion was cemented and during the tree installation on KBU 24-6RD. All communication equipment, camp trailers and camp accessory equipment remained in the same location. Start setting matting boards in place and positioning all components of Glacier #1 around the KU 21-7X conductor. 03/12/2006: Finish moving and spotting the remaining Glacier No.1 rig modules, rig equipment and support trailers to KU 21-7X and begin rig up operations. Continue setting matting boards down and positioning accessory equipment. Continue all general rig up, hook up and installation procedures. 03/13/2006: Continue assembling and rigging up all parts and equipment for Glacier No. 1. Craig Silva and John Lundy arrive on location, unload Unit #6, get power to the unit and begin rig up of all Epoch DML and Rigwatch equipment on Glacier No. 1. 03/1412006: Continuing rig up operations of Glacier No. 1. Rigging up and making up all parts and equipment. Hang torque-tube and turnbuckles. Rig up Topdrive. Service and function test loop and kelly hose. Rig up bails, elevators, tongs, spinners, choke hose, splash guards, geolograph line. Circulate water around rig. Fill pits. Mix mud. Change out shaker screens. Rig up monkey board, windwalls, electric lines, geronimo line, stand pipe manifold, fill-up line, choke line, accumulator line and trip tank gauges. Rig up Epoch. Make and dress final cut on 13 3/8" conductor. Set multi-bowl wellhead and test (to 1500psi for 15 minutes). Nipple up spacer spool and diverter tee. Remove bell nipple. Set and nipple up stack. Install bell nipple. Install flow line, trip tank line and fill-up line. Make up diverter spool assembly to diverter tee knife valve. Make up diverter line. Install safety lines on new shock hose for #3 mud pump. Install and function check Gaitronics wire form derrick boards. Hook kill line to annular valve. Craig Silva and John Lundy finish rig up and set up of Unit #6, and rig up of all Rigwatch system instrumentation, monitors and equipment on Glacier No. 1. Steve Forrest arrives on location and completes rigging up and initializing the wireless network to camp and the Starband Satellite system. 03/15/2006: Change out diverter spool API ring. Nipple up diverter pipe, accumulator lines, turnbuckles, pitcher nipple, fill-up lines and trip tank. Rig accepted by Marathon. Pick up tools. Function test BOPE and knife valve. Rig up to pick up drill pipe on rack. Pick up, drift, make up, stand back and strap 25 stands of 5" drill pipe. Make up 12 %<" bit and mudmotor to cross-over and 5" drill pipe. Function test mud pumps. Run in and wash and ream 13 3/8" conductor from 30' to 127'. Spud well and drill from 127' to 331'. Circulate hole clean. Pull out of hole. Pick up and make up and stand back HWDP and jars. Service rig. Pump up Topdrive compensator. Pick up and make up and run in hole directional drilling assembly (MWD, mudmotor, pony DC, and stabilizer). Orient MWD tool and motor. Run in directional tools and function test. Continue running in hole to 331'. Drill from 331' to 360'. Observe wear bushing not set in place. Pull out of hole. Install wear bushing. Run in hole to 360'. Drill from 360' to 570'.. 03/16/2006: Drill from 570' to 1540'. Survey @ 1540'. Circulate bottoms up and pump around Hi-Vis sweep. Circulate and clean hole. Check for flow. Pump dry job. Pull out of hole on wiper trip to shoe at 127'. Clean rig floor. Slip 120' and cut 145' of drill line. Run in hole to bottom at 1540'. Circulate bottoms up. Record 4 units of wiper gas. Drop and pump around carbide. Circulate hole clean. Check for flow. Pull out of hole (SLM). Break and lay dwn directional assembly (CSDPs, stabilizer, pony DC, cross- overs, MWD tool, mudmotor and bit). Pull wear ring. Dummy run casing hanger. Switch from drill pipe to casing tongs. Rig down spinner. Change bails and elevators. Rig up Weatherford casing running tools. Rig up fill-up line. Hold pre job meeting on safety and procedures for running casing. Pick up and make up 9 5/8" casing shoe track. Check floats. Run in hole with 9 5/8" casing. • ~~ EPOCH 10 M MARATHON OIL COMPANY KU 21-7X 03/1712006: Continue running in 9 5/8" casing (37joints) as per Marathon program. Make up landing joint and hanger. Land out casing at 1525'. Rig down and off load Weatherford casing running tools. Install cementing head and circulating line. Circulate 3794 strokes (1 1/2 casing volumes) at 150spm, 290gpm, 270psi and condition mud. Record 3 units maximum of gas. Hold pre-job meeting on safety and procedures for running casing. Load plugs into cementing head. Pump 40 bbls of Mud Clean II preflush with rig pumps. Switch to BJ cementing pumps. Pump 5 bbls water and pressure test lines to 2000psi. Bleed pressure. Batch cement to 12.Oppg. Drop bottom (first) wiper plug. Mix and pump 150 bbls of 12.Oppg cement slurry (340 sacks Type 1 cement plus 84 bbls mix water and accelerator chemicals). Shut down. Drop top (second) plug and pump out with 5 bbls of water. Displace cement with 106 bbls mud. (Total displacement is 111 bbls). There were no cement returns to the surface. Bump plug with 500psi over circulating pressure (970psi total pressure) and hold for 5 minutes. Bleed pressure off. Check floats. Cement in place. Flush stack and mud manifold. Blow down BJ lines. Rig down and lay down cementing head equipment. Clear and clean rig floor. Clean pits. Change out bails and elevators. Change carrier motor #1 oil and filters. Service carrier. Nipple down diverter line and knife valve. Hold pre job meeting on procedures for running Expro wireline tools. Rig up Expro. Run thermal logging tool to determine top of cement. (Top at 371'). Nipple down flowline, trip tank, fill up lines, turnbuckles, bell nipple, knife valve, DSA and spool. Nipple down and set aside stack and diverter tee. Begin mixing Flo-Pro drilling mud. Attempt to run g/." copper tubing for a top job. Could not get tubing down. Install mouse hole. Rig up spinner and pipe stop. Wait on smaller O.D. tubing to arrive on location. 03/18/2006: Continue mixing Flo-Pro drilling mud in the pits. Commercial heavy grade copper tubing (0.5" ID) arrives on location. Make up and run in top job string by "sweating" solder to the cut ends and sleeve couplings of successive 10' long joints of copper tubing. Run copper tubing 370' down the backside of 9 5/8" casing. Make up tiny circulating head to 0.5" copper tubing string. Circulate water through tubing with rig water pump. Experiment with potential rates and pressures that will be used when pumping through the 0.5" tubing. Wait on BJ cementers to rig up. Hold pre job meeting on procedures and contingencies for pumping small controlled volume of cement through the tubing. Switch over to BJ. Mix (400 sacks Class 1 cement) and pump 92 bbls of 15.Oppg cement slurry to surface. Rig down BJ and blow down lines. Separate and rig down circulating assembly. Cut off copper tubing. Leave tubing below the cut in backside of casing, and load off the excess surface tubing. Install pack-off and test (to 5000psi for 10 minutes). Hold pre job meeting on procedures for handling stack. Set and nipple up stack. Install bell nipple. Rig up fill-up, bleeder and trip tank lines. Nipple up kill and check valves. Install riser, turnbuckles, kill and choke lines, drip pan and panic line. Pull wear ring. Pick up and make up test joint and equipment. Test BOPE (annular, pipe rams, blind rams, HCR, manual choke, inside and outside kill check valves, upper and lower Topdrive kelly cock valves, floor and dart valves, choke manifold valves 1- 12) to 250psi Low / 2000psi High for 10 minutes. 03/1912006: Do accumulator performance test. Install wear bushing. Test 9 5/8" casing to 2000psi for 30 minutes. Blow down choke and mud line. Pick up, drift, run in, pull and rack back, and strap 100 joints (50 stands) of 5" drill pipe. Pick up and make up directional drilling bottom hole assembly. Orient MWD tools. Run in and test MWD and test failed. Pull out and discover cement in tool. Clean out cement and run back in hole and retest tool with success. Pull and change out MWD tool. Orient new MWD tools. Run in hole and test new MWD tool with success. Continue running in hole with 5" drill pipe. Pick up and make up and run in hole with 5" drill pipe to 1443'. Drill out entire shoe tract (float equipment, shoe, cement in hole) to 1540'. Drill 20' of new hole to 1560'. Mix and pump spacer. Displace hole with new Flo-Pro mud. Perform Formation Integrity Test to 14.1 EMW. Drill from 1560' to 2107' 03/20/2006: Drill from 2107' to 3560'. Circulate hole clean. Check for flow. Pump dry job. Pull 32 stands out of hole to shoe on wiper trip. Service rig, Topdrive and crown. Remove #1 Denison driveline. Run in hole to bottom at 3560'. Drill from 3560' to 3797'. ~~ EPOCH 11 M MARATHON OIL COMPANY KU 21-7X 03/2112006: Drill from 3797' to 4063'. Lose circulation. Pull 5 stands, spot 50 bbl Safecarb LCM pill #1 in drill pipe. Run in hole to 4063'. Pump and spot pill #1 on bottom. Pull out of hole 5 stands. Build pit volume. Monitor well. Mix, pump and spot 50 bbl Safecarb LCM pill #2. Continue building volume in pits and monitoring well. (Losing 20 bbls per hour). Mix, pump and spot 50 bbls Safecarb LCM pill #3. Continue building volume in pits and monitoring well. Mix, pump and spot 50 bbls Safecarb LCM pill #4. Continue building volume in pits and monitoring well. (Losses reduced to 16 bbls per hour). Mix, pump and spot 50 bbls Mix II LCM pill #5. Continue building volume in pits and monitoring well. Mix, pump and spot 50 bbls Mix II LCM pill #6. Continue building volume in pits and monitoring well. (Losses reduced to 10 bbls per hour). Run in hole to 4063'. Drill from 4063' to 4252'. 03/22/2006: Drill from 4252' to 5032'. Circulate bottoms up and circulate hole clean. Spot 50 bbls of Mix II LCM at 5032'. Pull out of hole to 3680' (SLM). Pump dry job. Pull out of hole to directional assembly. Break and lay down directional assembly (CSDPs, cross-overs, stabilizer, pony DC, MWD tool, motor, bit). Pick up and make up bit (old rerun), bit sub and cross-over to first stand of HWDP. Run in hole to shoe. Service rig and Topdrive. Run in hole to bottom at 5032'. Circulate bottoms up. Record 20 units of trip gas. Circulate and condition hole. 03/2312006: Circulate hole clean and condition hole. Check for flow. Pump dry job. Pull out of hole. Clear and clean rig floor. Fill trip tank. Blow down mud line. Service and clean Topdrive. Hold pre job meeting with Precision Energy Services on handling wireline tools. Rig up PES. Make up Quad-Combo logging assembly. Run assembly in hole. Pull and log up from 5032' to 1500'. Pull logging assembly to surtace. Hold weekly safety meeting with all hands. Wait on orders. Mix mud in pits. Monitor well (losing 12 bbls per hour). Rig down PES. Run in hole and then pull out of hole laying down HWDP and jars. Pick up and make up muleshoe to 5" drill pipe. Run in hole with 5" drill pipe to 4041'. Rig up PES for running wireline tools. Pick up and make MFT logging assembly. Run in hole with MFT assembly. 03124/2006: Run in hole with Precision Energy Services MFT logging assembly (through open-ended 5" drill pipe with mule shoe set at 4041') to 4790'. Log up from 4790' to 4762', but unable to get a seal when the MFT tool's testing pad is set on pressure points. Pull out of hole with MFT assembly and lay down on catwalk to inspect. Work string of 5" drill pipe up and down to avoid sticking problems and reset at 4041'. Tool pressure sensor was visibly damaged. Replace sensor. Make up, pick up and run MFT logging assembly through open pipe and down hole to 4790'. Log up and take pressure points from 4790' to 4595'. Pull MFT assembly out of hole and lay aside. Work 5" drill pipe again to avoid sticking problems and reset at 4041'. Pick up and run MFT assembly back in hole to 4469'. Log up and take pressure points from 4469' to 4081'. Pull MFT assembly out of hole and lay aside. Pull 5" drill pipe out of hole and set bottom of string at 3533'. Pick up and run in MFT logging assembly back in hole through open-ended pipe to 4061'. Log up and take pressure points from 4061' to 3635'. Pull MFT logging assembly out of hole and lay aside. Work 5" drill pipe string up and down to avoid sticking problems and reset at 3533'. Pick up and run MFT assembly back in hole to 3826'. Log up and take spot repeat pressure points from 3826' to 3636'. Pull MFT assembly out of hole and lay aside. Confirm finish of logging. Break down and fay down MFT logging tools. Rig down Precision Energy Services. Pull out of hole with 5" drill pipe. ~~ EPOCH 12 M MARATHON OIL COMPANY KU 21-7X 03/2512006: Finish pulling 5" drill pipe out of hole Break and lay down mule shoe. Pick up and make up first 2 joints of HWDP off rack. Make up 8'/Z" bit, bit sub and cross-over to first stand of HWDP and run in hole. Continue to pick up off rack, make up and run in hole HWDP (21 joints total) and jars. Make up to 5" drill pipe and continue running in hole to near shoe at 1525'. Break circulation. Observe fall off in pump pressure and suspect hole in drill pipe. Pull out of hole to top of HWDP searching for a washout, but failed to find evidence. Run back in hole to 1525', doing a pressure test every 5 stands to double- checkfor possible pressure drops. Continue running in hole to 5032'. Circulate bottoms up. Record 20 units of trip gas. Circulate hole clean. Spot 50 bbl blended LCM pill of Mix II and Safecarb. Check for flow. Pump dry job. Pull out of hole laying down drill pipe, HWDP and jars. Break and lay down bit, bit sub and cross-over. Pull wear bushing. Rig down, lay down and load off spinner, rig tongs, handling tools and floor valves. Make up hanger on landing joint and do a dummy run. Lay down hanger. Clear and clean rig floor. Change bails and elevators. Rig up fill-up line. Pick up and rig up Weatherford casing running equipment. Hold pre job meeting for all hands on procedures for running 5'/2" production casing string. Pick up, make up, run in and function check casing float assembly. Pick up, make up and run in hole 5'/z" production casing string to 1540' (shoe). Rig up circulating line and head. Circulate around (at 63spm, 123gpm, 69psi). Rig down circulating head. Blow down line. Continue running in hole with 5'/z" production casing string to 1622'. Pick up and install stage collar. Continue running in hole with 5 %" production casing string as per program. 03126/2006: Continue running in hole with 5'/2" production casing string and land at 5022'. Rig up circulating line and head. Circulate (at 100spm, 195gpm, 500psi). Circulate one bottoms up. Record 3 units of trip gas. Hold pre job meeting on first stage cementing procedures. Rig down circulating head. Install cementing head (without plugs). Switch to BJ cementing lines. Pump 2 bbls water to fill lines and then test to 4000psi. Mix and pump 30 bbls of 10.Oppg MCS-4 sweep with cello flake (mixed with 26.2 bbls of water), followed by 101 bbls of 12.7ppg cement slurry (made by mixing 260 sacks Class G cement with red dye in the first batch plus 73.3 bbls mix water plus accelerator chemicals plus 1 sack of cello flake). Shut down after pumping cement slurry. Remove cement head cap and drop in first (1~) stage plug. Pump and displace with 5 bbls of water, followed by 110 bbls of mud (115 bbls total displacement). • Bump plug (without exceeding 1500psi). Bleed off and check floats. Pressure up to 2900psi (in stage increments of 200psi) to open stage collar. Switch back to rig pumps. Circulate at 3394'. Circulate out excess cement and circulate and condition mud (at 100spm,195gpm, 190psi). Dump 105 bbls of fluid that includes MGS-4 sweep and contaminated mud. Shut down pumps and wait on cement. Prepare for second stage cement job. With the cementing head still in place, break circulation using rig pumps and circulate around through stage tool (at 100spm, 195 gpm, 190psi). Hold pre job meeting on second stage cementing procedures. Switch to BJ cementing lines. Pump 2 bbls water to fill lines. Mix and pump 30 bbls of 10.Oppg MCS-4 sweep (mixed with 26.2 bbls of water), followed by 82.2 bbls of 13.5ppg cement slurry (made by mixing 250 sacks Class G cement plus 55.4 bbls mix water plus accelerator chemicals). Shut down after pumping cement slurry. Remove cement head cap and drop in second (2"d) stage plug. Pump and displace with 5 bbls of water, followed by 74 bbls of mud (79 bbls total displacement). Bump plug and close stage collar at 1500psi. Cement in place. Bleed off. Rig down cementing head and cementing lines. Lay down landing joint. Change out bails, elevator and saver sub. Rig up Weatherford to run pipe. Pick up and rig up handling tools. Strap and drift 2'/e" drill pipe and HWDP laid out on racks. Rig up handling equipment for picking up drill pipe. Pick up and make up a the first stand of 2'/e" HWDP, and then pick up and make up to the same stand a 4 ~/." bit and bit sub and run in hole. Continue picking up, making up and running in hole 2'/8" drill pipe to top of stage collar at 3393'. Break circulation. Begin drilling out stage collar. ~~ EPOCH 13 MARATHON OIL COMPANY KU 21-7X 03/2712006: Drill out stage DV stage collar from 3393' to 3395'. Circulate hole clean at 3395'. Hold pre- . job meeting with new crew on safety and procedures for handling 2 7/8" drill pipe. Pick up drill pipe (using nubbins) and make up and run in hole from 3395' to 4939' (top of float collar). Circulate hole clean. Pull out of hole. Handle bottom hole assembly. Stand back 16 drill collars. Break bit. Make up scraper run assembly. SLM scraper. Make up bit, bit sub and scraper to drill collar and run in hole. Continue running 2 7/8" drill collars and drill pipe (with nubbins) in the hole on scraper run to top of float collar at 4939'. Fill drill pipe. Rig up to test casing as per orders, but immediately discontinue rig up when made aware that it cannot be done without setting a packoff. Clean pill pit. Build and pump 30 bbl spacer (2ppb Flo-Vis to 30 bbts water). Displace hole with 180 bbls of 6% KCI brine with Sodium MetaBisulfite (and 1 drum of Conqor 303A). Pull out of hole from 4939' to 4350' from laying down 2 7/8" drill pipe. Rinse surface equipment with water and blow down. Pull out of hole from 4350' to 483' laying down 2 7/8" drill pipe, and from 483' to surface laying down (16) 2 7/8" drill collars. Break and lay down bit, scraper and sub. Rig down and load off Weatherford equipment. Clear and clean rig floor. 03/28/2006: Continue cleaning pits. Pump out and clean trip tank. Pump out Hanson tank. Flush and blow down mud pumps and all pump lines, choke and choke lines, mud manifold and all mud lines, and fill and trip lines. Rig down standpipe manifold. Rig down #3 mud pump. Flush and washout stack. Change saver sub to 4'/" IF. Nipple down BOPs. Remove and load off drip pan. Pull and lay down mousehole. Pull and load off pitcher nipple. Rig down flow nipple, flowline, riser, choke lines, kill lines, trip tank line, fill-up line, turnbuckles and tie-down lines. Rig down accumulator lines and panic line. Nipple down and tie down kill line valves and choke line in basket. Set butt plug. Chain and pull hoist rails out. Rig up bridge cranes to BOP stack. Pick up BOP stack and move out to rack and chain down. Nipple down and remove BOP stack and spools. Back out landing joint. (Hanger was landed in multi- bowl wellhead). Install and set 5'/2" packoff. Run in lock-down pins. Nipple up 13 g/" by 7" 5M tubing head adaptor and dry hole flange. Test tubing head to 5000psi. (This well will have coiled tubing hangers and a tree added above the 7" tubing head after the rig has moved). Completion is to be done without a rig. The well will be perforated and coil will be used to run the completion strings. Begin rig down and move of all Glacier No.1 rig modules, rig equipment, rig support trailers, camp trailers, camp accessory equipment and communication equipment to the KU 11-8 Workover on Pad 41-7. Craig Silva and Justin Schrader shut down the Rigwatch 8 system, and then rig down all rig and Epoch Unit #6 instrumentation, monitors and equipment, the wireless network to camp and the Starband Satellite system. Unit #6 is loaded, organized and secured for transport to Anchorage office. • ~~ EPOCH 14 "M MARATHON OIL COMPANY KU 21-7X 4.2. SURVEY RECORD Measured Depth Inclination Azimuth TVD Vertical Section Rectangular Coordinate + N/S - Rectangular Coordinate + EMI _ Closure Closure Azimuth DLS ft de de ft ft ft ft ft de de /100 ft 0 0 0 0 0 0 0 Tie-In Point 193 0.3 247.3 193.00 -0.38 0.19 0.47 0.51 247.30 0.16 319 0.1 34.3 319.00 -0.60 0.23 0.71 0.75 251.91 0.31 440 0.2 307.2 440.00 -0.77 0.02 0.82 0.82 268.84 0.18 561 0.4 293.4 561.00 -1.39 0.28 1.37 1.40 281.48 0.17 682 0.7 293.8 681.99 -2.55 0.74 2.44 2.55 287.00 0.25 804 0.9 295.0 803.98 -4.24 1.45 3.99 4.24 289.99 0.16 930 1.2 302.7 929.96 -6.50 2.58 5.99 6.53 293.30 0.26 1054 1.5 301.1 1053.92 -9.33 4.12 8.48 9.43 295.93 0.24 1178 0.7 311.8 1177.90 -11.60 5.46 10.43 11.78 297.65 0.66 1305 0.8 310.1 1304.89 -13.13 6.55 11.69 13.40 299.28 0.08 1482 0.7 320.0 1481.87 -15.19 8.18 13.33 15.64 301.53 0.09 1557 0.6 327.0 1556.87 -15.88 8.86 13.84 16.43 302.63 0.17 1683 0.6 345.9 1682.86 -16.74 10.05 14.36 17.52 304.99 0.16 1744 0.6 353.5 1743.86 -17.04 10.68 14.47 17.98 306.42 0.13 1807 1.5 52.5 1806.85 -16.71 11.51 13.85 18.01 309.71 2.06 1871 4.4 70.6 1870.76 -14.28 12.83 10.87 16.82 319.73 4.70 1934 5.4 73.8 1933.53 -9.89 14.46 5.75 15.56 338.33 1.64 1998 5.7 72.9 1997.23 -4.79 16.24 0.18 16.24 0.65 0.49 2061 6.8 76.9 2059.85 0.97 18.00 6.81 19.25 20.71 1.88 2124 7.8 82.0 2122.34 8.02 19.44 14.67 24.36 37.04 1.89 2187 9.5 84.7 2184.62 16.65 20.52 24.08 31.64 49.57 2.77 2250 11.3 85.8 2246.58 27.16 21.45 35.42 41.41 58.80 2.87 2313 13.5 88.0 2308.11 39.80 22.16 48.92 53.71 65.63 3.57 2377 15.1 88.9 2370.13 54.72 22.58 64.73 68.55 70.77 2.52 2440 16.5 88.6 2430.74 70.93 22.96 81.87 85.03 74.34 2.23 2503 18.0 88.6 2490.91 88.57 23.41 100.55 103.24 76.89 2.38 ~~ EPOCH 15 • "M MARATHON OIL COMPANY KU 21-7X Measured Depth Inclination Azimuth ND Vertical Section Rectangular Coordinate + N/S - Rectangular Coordinate + E/W _ Closure Closure Azimuth DLS ft de de ft ft ft ft ft de de /100 ft 2567 19.6 88.2 2551.49 108.02 23.99 121.17 123.52 78.80 2.51 2631 20.9 87.5 2611.54 128.84 24.83 143.30 145.44 80.17 2.07 2694 21.3 84.9 2670.31 149.92 26.33 165.93 168.00 80.98 1.62 2757 21.9 82.3 2728.89 171.06 28.93 188.97 191.17 81.30 1.79 2820 22.9 81.4 2787.14 192.65 32.33 212.73 215.17 81.36 1.68 2883 24.0 81.1 2844.93 215.07 36.15 237.51 240.24 81.35 1.76 2946 24.8 82.4 2902.30 238.45 39.88 263.26 266.27 81.39 1.53 3009 25.4 84.7 2959.36 262.81 42.87 289.81 292.97 81.59 1.82 3072 25.6 88.4 3016.22 288.08 44.50 316.88 319.99 82.01 2.55 3135 26.4 91.8 3072.85 314.38 44.44 344.48 347.34 82.65 2.68 3199 26.4 95.4 3130.18 341.95 42.66 372.87 375.30 83.47 2.50 3262 25.9 99.1 3186.73 369.24 39.16 400.40 402.31 84.41 2.71 3325 24.4 102.2 3243.76 395.79 34.23 426.71 428.08 85.41 3.17 3388 23.4 105.5 3301.36 421.24 28.14 451.49 452.36 86.43 2.65 3452 22.6 109.1 3360.28 446.24 20.72 475.35 475.81 87.50 2.53 3514 21.9 114.3 3417.67 469.64 12.06 497.15 497.30 88.61 3.37 3575 21.4 119.5 3474.37 491.84 1.90 517.21 517.21 89.79 3.25 3639 20.0 124.0 3534.24 513.79 9.97 536.45 536.54 91.06 3.31 3702 19.2 126.4 3593.59 533.95 22.14 553.72 554.16 92.29 1.80 3765 18.9 127.1 3653.14 553.40 34.45 570.19 571.23 93.46 0.60 3828 18.9 126.6 3712.74 572.69 46.68 586.52 588.38 94.55 0.26 3891 18.7 126.6 3772.38 591.91 58.79 602.82 605.68 95.57 0.32 3954 18.8 131.4 3832.04 610.78 71.52 618.55 622.67 96.60 2.45 4016 19.3 138.2 3890.65 628.78 85.77 632.87 638.66 97.72 3.67 4081 19.2 140.0 3952.02 647.09 101.97 646.90 654.89 98.96 0.93 4142 18.7 143.1 4009.71 663.56 117.47 659.22 669.60 100.10 1.84 4206 17.5 144.0 4070.55 679.70 133.46 671.04 684.18 101.25 1.93 4270 15.8 144.9 4131.86 694.42 148.37 681.70 697.66 102.28 2.69 4333 14.0 147.3 4192.74 707.14 161.81 690.75 709.45 103.18 3.02 4397 12.7 152.0 4255.01 718.16 174.53 698.24 719.72 104.03 2.64 ~~ EPC)CH 16 • "M MARATHON OIL COMPANY KU 21-7X • Measured Depth Inclination Azimuth ND Vertical Section Rectangular Coordinate + N/S - Rectangular Coordinate + ENV - Closure Closure Azimuth DLS ft de de ft ft ft ft ft de de /100 ft 4461 11.1 156.5 4317.64 727.27 186.39 704.00 728.26 104.83 2.89 4524 9.1 159.1 4379.66 734.39 196.61 708.19 734.98 105.52 3.26 4587 8.0 158.7 4441.96 740.27 205.35 711.56 740.60 106.10 1.75 4651 7.0 156.8 4505.41 745.64 213.08 714.72 745.81 106.60 1.61 4714 5.1 154.4 4568.05 750.08 219.14 717.44 750.16 106.99 3.04 4778 5.1 154.3 4631.80 754.00 224.27 719.90 754.03 107.30 0.01 4904 4.9 154.6 4757.32 761.54 234.17 724.64 761.54 107.91 0.16 4986 4.8 155.1 4839.03 766.26 240.45 727.59 766.29 108.29 0.13 `*5032 4.8 155.1 4884.87 768.87 243.94 729.21 768.93 108.50 0.00 ""Pro'ection ~~ EPOCH 17 • "M MARATHON OIL COMPANY KU 21-7X 4.3. MUD RECORD Contractor: MI Drilling Fluids Mud Tvae: Water / Flo-Vis: 127' - 1540' 6% KCI FloPro: 1540' - 5032' • DATE MD / TVD MW VIS PV YP GELS FL FC SOL OIL/H20 SD MBT pH Alk CI- Ca+ 3/13/2006 127 / 127 8.7 54 7 29 18/22/27 16.0 2 3.0 0/97 0.0 25.0 9.3 0.2 900 60 3/14/2006 127 / 127 8.7 54 7 29 18/22/27 16.0 2 3.0 0/97 0.0 25.0 9.3 0.2 900 60 3/15/2003 127 / 127 8.8 65 11 24 20/26/31 15.0 2 3.5 0/97 0.1 22.5 9.1 0.2 400 60 3/15/2003 465 / 465 8.9 61 11 23 21/28/32 13.0 2 4.0 0/96 0.1 22.0 9.3 0.25 440 60 3/16/2006 1392 / 1392 8.9 58 11 22 18/26/30 8.2 2 4.0 0/96 0.1 22.0 9.4 0.3 200 60 3/16/2006 1540 / 1540 8.9 49 12 19 15/21/25 6.8 2 4.0 0/96 0.1 20.0 9.4 0.3 200 60 3/17/2006 1540 / 1540 9.0 46 12 18 11/19/25 7.2 2 4.5 0/96 0.1 20.0 8.9 0.2 200 60 3/18/2006 1540 / 1540 9.0 39 9 20 6/7/7 10.1 3/18/2006 1540 / 1540 9.0 46 12 18 11/19/25 7.2 2 4.4 0/96 0.1 20.0 8.9 0.2 200 60 3/19/2006 1686 / 1686 9.1 37 9 17 6/8/8 5.6 1 4.0 0/96 TR 0.0 9.8 0.8 33000 40 3/19/2006 2057 / 2056 9.2 38 9 18 6/8/8 TR 9.8 3/20/2006 2741 / 2714 9.4 42 9 22 11/12/13 6.4 1 5.0 0/95 0.1 2.0 9.8 0.6 33000 40 3/20/2006 3564 / 3464 9.4 43 9 23 12/13/13 6.8 1 5.0 0195 0.1 4.0 9.6 0.5 32000 40 3/21/2006 4063 / 3935 9.2 45 10 23 13/14/15 7.4 1 4.0 0/96 TR 0.0 9.4 0.4 34000 40 3/22/2006 4782 / 4636 9.2 42 10 19 10/11/12 6.6 1 4.0 0/96 0.1 0.0 9.0 0.3 32000 40 3/22/2006 5032 / 4885 9.2 43 8 18 8/11 /12 6.4 1 4.0 0/96 0.1 2.0 9.6 0.3 29000 60 3/23/2006 5032 / 4885 9.1 46 7 19 9/10/11 6.0 1 3.5 0/97 TR 1.0 10.2 0.8 28000 60 3/24/2006 5032 / 4885 9.2 46 6 18 8/11/12 6.9 1 4.0 0/96 0.1 1.0 9.0 0.2 31000 40 3/25/2006 5032 / 4885 9.2 41 6 17 8/10/11 7.6 1 4.0 0/96 0.1 1.0 9.3 0.35 31000 40 3/26/2006 5032 / 4885 9.3 42 7 15 8/10/11 8.2 1 4.5 0/96 0.25 4.0 9.0 0.2 30000 60 3/27/2006 5032 / 4885 8.6 28 1 1 KCI Brine 1.0 0/99 7.7 30000 ~~ EPCJCH 18 • •, ""M MARATHON OIL COMPANY KU 21-7X 4.4. 81 T RECORD • BIT SIZE ~° TYPE SIN JETSI IN OUT FT HRS AVE WOB R P PP Lo -Avg CONDITION NO. TFA ROP Lo -Avg - Hi - Hi 1 12 25 HCC 5082062 3x18, 127 331 204 1.25 231.5 0.3 - 2.7 - 333 - 629 NG RR1 MXL-1 1x12c 4.1 - 770 1 12 25 HCC 5082062 3x18, 331 1540 1209 7.18 429.9 1,1 - 8.9 - 552 -1264 3-3-CT-A-E-1/16-WT-TD RR2 MXL-1 1x12c 21.7 -1680 2 8 5 HCC 7110657 5x15 1540 5032 3492 28.50 196.9 0.4 - 7.0 - 637 - 987 1-1-NO-A-X-1-NO-RD HCM605 61.6 -1372 8 5 T49BW 3x20 5032 5032 0 n/a n/a n/a n/a G RR1 ' ATM MG1 Clean out run only 8 S T49BW 3x20 5032 5032 0 n/a n/a n/a n/a G RR2 ' ATM MG1 Clean out run only 75 4 5009059 3x20 n/a n/a n/a n/a n/a n/a n/a RR1 ' STX 1 Casing clean out run only 4 75 5009059 3x20 n/a n/a n/a n/a n/a n/a n/a RR2 . STX 1 Casing Scraper run only ~~ EI'QCH 19 • • "" MARATHON OIL COMPANY KU 21-7X 4.5. DRILLING PROGRESS CHART 0 1000 2000 X3000 a W D 4000 5000 6000 0 0 N N M • ~1 EPOCH 20 ~ ~ ~ ~ 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 N ~V N N N N N N ~V N N N N N ~V N (`~ V' ~ f0 h a0 ~ O N M '~ ~ f0 1~ W N N N M M M M M M M M M M M M M M M M DATE M MARATHON OIL COMPANY KU 21-7X • Marathon Oil Company EP /~ ~~ Kenai Gas Field DAILY WELLSITE REPORT ~J/` J' KU 21-7X REPORT FOR John Nicholson !Rowland Lawson DATE March 14, 2006 DEPTH 125 PRESENT OPERATION Continuing rig-up operations, re-installing diverter line TIME 24:00 YESTERDAY 125 24 HOUR FOOTAGE 0 CASING INFORMATION 13 3/8" @ 125' DEPTH INCLINATION AZIMUTH VERTICAL DEPTH SURVEY DATA BIT INFORMATION INTERVAL CONDITION REASON NO. SIZE TYPE S/N JETS IN OUT FOOTAGE HOURS T/B/C PULLED DRILLING PARAMETERS HIGH LOW AVERAGE CURRENT AVG RATE OF PENETRATION ~ ~ FT/HR SURFACE TORQUE @ @ AMPS WEIGHT ON BIT (a3 @ KLBS ROTARY RPM @ C~1 RPM PUMP PRESSURE @ @ PSI DRILLING MUD REPORT DEPTH 125 / 125 TVD MW 6.7 VIS 54 PV 7 YP 29 FL 16.0 Gels 18/22/27 CL- 900 FC 2 SOL 3.0 SD 0 OIL 0/97 MBL 25.0 pH 9.3 Ca+ 60 CCI MWD SUMMARY INTERVAL TO TOOLS GAS SUMMARY (units) HIGH LOW AVERAGE DITCH GAS @ @ TRIP GAS CUTTING GAS @ @ WIPER GAS CHROMATOGRAPHY(ppm) SURVEY METHANE (C-1) (d1 @ CONNECTION GAS HIGH ETHANE (C-2) @ @ AVG PROPANE (C-3) ~ C~2 CURRENT BUTANE (C-4) ~ @ CURRENT BACKGROUND/AVG PENTANE (C-5) HYDROCARBON SHOWS INTERVAL LITHOLOGY/REMARKS GAS DESCRIPTION LITHOLOGY PRESENT LITHOLOGY Continuing rig-up operations. Hang torque-tube and turnbuckles. Rig up Topdrive. Service and function test loop and kelly hose. Rig up bails, elevators, tongs, spinners, choke hose, splash guards, geolograph line. Circulate water around rig. Fill pits. Mix mud. DAILY Change out shaker screens. Rig up monkey board. windwalls, electric lines, geronimo line, stand pipe manifold, fill-up line, choke ACTIVITY line, accumulator line and trip tank gauges. Rig up Epoch. Make and dress final cut on 13 3/8" conductor. Set multi-bowl wellhead SUMMARY and test (to 1500psi for 15 minutes). Nipple up spacer spool and diverter tee. Remove bell nipple. Set and nipple up stack. Install bell nipple. Install flow line, trip tank line and fill-up line. Make up diverter spool assembly to diverter tee knife valve. Make up diverter line. Install safety lines on new shock hose for #3 mud pump. Install and function check Gaitronics wire form derrick boards. Hook kill line to annular valve. EPOCH PERSONNEL ON BOARD 2 DAILY COST ML: 2040 RW: 410 REPORT BY Craig Silva ~~ EPOCH 21 M MARATHON OIL COMPANY KU 21-7X Marathon Oil Company ~ EPOCH Kenai Gas Field DAILY WELLSITE REPORT KU 21-7X REPORT FOR John Nicholson / Rowland Lawson DATE Mar 15, 2006 DEPTH 570 PRESENT OPERATION Drilling TIME 24:00 YESTERDAY 127 24 HOUR FOOTAGE 443 CASING INFORMATION 13 3/8" @ 127' DEPTH INCLINATION AZIMUTH VERTICAL DEPTH 193 0.3 247.3 193.0 SURVEY DATA 319 0.1 034.3 319.00 440 0.2 307.2 440.00 561 0.4 293.4 561.00 BIT INFORMATION INTERVAL CONDITION REASON NO. SIZE TYPE S/N JETS IN OUT FOOTAGE HOURS T/B/C PULLED 1RR1 12.25 HCC MXL-1 5082062 3x18 1x12cj 127 331 204 1.25 NG Pick up MWD 1RR2 12.25 HCC MXL-1 5082062 3x18 1x12cj 331 239 2.45 In Hote DRILLING PARAMETERS HIGH LOW AVERAGE CURRENTAVG RATE OF PENETRATION 1063.2 @ 515 9.0 @ 344 206.5 301.7 FT/HR SURFACE TORQUE 1331 @ 346 553 @ 130 956.3 1063.2 AMPS WEIGHT ON BIT 5 @ 441 1 @ 249 3.1 3.4 KLBS ROTARY RPM @ @ RPM PUMP PRESSURE 1240 @ 568 388 @ 134 835.3 1132.5 PSI DRILLING MUD REPORT DEPTH 465 / 465 TVD MW 8.9 VIS 61 PV 11 YP 23 FL 13.0 Gels 21/28/32 CL- 440 FC 2 SOL 4.0 SD 0.1 OIL 0196 MBL 22.0 pH 9.3 Ca+ 60 CCI MWD SUMMARY INTERVAL TO TOOLS GAS SUMMARY (units) HIGH LOW AVERAGE DITCH GAS 7 @ 556 0.3 @ 152 1.1 TRIP GAS 2 CUTTING GAS @ @ WIPER GAS CHROMATOGRAPHY(ppm) SURVEY METHANE (C-1) 1478 @ 556 72 @ 152 222.5 CONNECTION GAS HIGH ETHANE (C-2) @ @ AVG PROPANE (C-3) @ @ CURRENT BUTANE (C-4) @ @ CURRENT BACKGROUNDlAVG 2 / 3 PENTANE (C-5) @ @ HYDROCARBON SHOWS INTERVAL LITHOLOGY/REMARKS GAS DESCRIPTION LITHOLOGY PRESENT LITHOLOGY Change out diverter spool API ring. Nipple up diverter pipe, accumulator Tines, turnbuckles, pitcher nipple, fill-up lines and trip tank. Pick up tools. Function test BOPE and knife valve. Rig up to pick up drill pipe on rack. Pick up, drift, makeup, stand back and strap DAILY 25 stands of 5" drill pipe. Make up 12 1/4" bit and mudmotor to cross-over and 5"drill pipe. Function test mud pumps. Run in and ACTNITY wash and ream 13 3/8" conductor from 30' to 127'. Spud well and drill from 127' to 331'. Circulate hole clean. Pull out of hole. Pick up SUMMARY and make up and stand back HWDP and jars. Service rig. Pump up Topdrive compensator. Pick up and make up and run in hole directional drilling assembly (with MWD, mudmotor, pony DC, and stabilizer). Orient MWD tool and motor. Run in lower assembly with directional tools and function test. Continue running in hole to 331'. Drill from 331' to 360'. Observe wear bushing not set in place. Pull out of hole. Install wear bushing. Run in hole to 360'. Drill from 360' to 570'. EPOCH PERSONNEL ON BOARD 2 DAILY COST ML: 2040 RW: 410 REPORT BY Craig Silva ~: ~~ EPOCH 22 M MARATHON OIL COMPANY KU 21-7X Marathon Oil Company ~ ~T~~T T Kenai Gas Field DAILY WELLSITE REPORT 1, lul KU 21-7X REPORT FOR John Nicholson / Rowland Lawson DATE Mar 16, 2006 DEPTH 1540 PRESENT OPERATION Running in hole with 9 5/8" casing TIME 24:00 YESTERDAY 570 24 HOUR FOOTAGE 970 CASING INFORMATION 13 3/8" r~ 127' DEPTH INCLINATION AZIMUTH VERTICAL DEPTH 882 0.7 293.8 881.99 SURVEY DATA 930 1.2 302.7 929.96 1178 0.7 311.8 1177.90 1482 0.7 320.0 1481.87 BIT INFORMATION INTERVAL CONDITION REASON NO. SIZE TYPE S/N JETS IN OUT FOOTAGE HOURS T/B/C PULLED 1RR2 12.25 HCC MXL-1 5082062 3x18 1x12cj 331 1540 1209 7.18 3-3-CT-A-E-1/16-WT-TD Casing point DRILLING PARAMETERS HIGH LOW AVERAGE CURRENT AVG RATE OF PENETRATION 2020.2 @ 728 16.1 @ 1369 490.2 615.4 FT/HR SURFACE TORQUE 1605 @ 1157 49 @ 1406 990.3 1207.0 AMPS WEIGHT ON BIT 21 @ 1416 1 @ 693 10.3 10.4 KLBS ROTARY RPM Q @ RPM PUMP PRESSURE 1680 @ 1157 963 ~ 1369 1326.0 1125.4 PSI DRILLING MUD REPORT DEPTH 1540 / 1540 TVD MW 8.9 VIS 49 PV 12 YP 19 FL 6.8 Gels 15/21/25 CL- 200 FC 2 SOL 4.0 SD 0.1 OIL 0196 MBL 20.0 pH 9.4 Ca+ 60 CCI MWD SUMMARY INTERVAL TO TOOLS GAS SUMMARY (units) HIGH LOW RVERAGE DITCH GAS 51 @ 1363 2 ~ 574 13.6 TRIP GAS CUTTING GAS @ ~ WIPER GAS 4 CHROMATOGRAPHY(ppm) SURVEY METHANE (C-1) 10303 @ 1363 364 (~ 574 2729.2 CONNECTION GAS HIGH ETHANE (C-2) C~ @ AVG PROPANE (C-3) @ @ CURRENT BUTANE (C-4) @ ~ CURRENT BACKGROUND/AVG N/A PENTANE (C-5) ~ ~ HYDROCARBON SHOWS INTERVAL LITHOLOGY/REMARKS GAS DESCRIPTION LITHOLOGY PRESENT LITHOLOGY Drill from 570' to 1540'. Survey @ 1540'. Circulate bottoms up and pump around Hi-Vis sweep. Circulate and clean hole. Check for flow. Pump dry job. Pull out of hole on wiper trip to shoe at 127'. Clean rig floor. Slip 120' and cut 145' of drill line. Run in hole to DAILY bottom at 1540'. Circulate bottoms up. Record 4 units of wiper gas. Drop and pump around carbide. Circulate hole clean. Check for ACTNITY flow. Pull out of hole (SLM). Break and lay down directional assembly (CSDPs, stabilizer, pony DC, cross-overs, MWD tool, SUMMARY mudmotor and bit). Pull wear ring. Dummy run casing hanger. Switch from drill pipe to casing tongs. Rig down spinner. Change bails and elevators. Rig up Weathertord casing running tools. Rig up fill-up line. Hold pre job meeting on safety and procedures for running casing. Pick up and make up 9 5!B" casing shoe frack. Check floats. Run in hole with 9 5/8" casing. EPOCH PERSONNEL ON BOARD 2 DAILY COST ML: 2040 RW: 410 REPORT BY Craig Silva • ~~ EPOCH 23 M MARATHON OIL COMPANY KU 21-7X Marathon Oil Company ~ El'OGH Kenai Gas Field DAILY WELLSITE REPORT KU 21-7X REPORT FOR Rowland Lawson DATE Mar 17, 2006 DEPTH 1540 PRESENT OPERATION Waiting for small diameter top job tubing to arrive TIME 24:00 YESTERDAY 1540 24 HOUR FOOTAGE 0 CASING INFORMATION 9 518" @ 1525' SURVEY DATA DEPTH INCLINATION AZIMUTH VERTICAL DEPTH 1540 (Projection) 0.70 320.0 1539.88 BIT INFORMATION INTERVAL CONDITION REASON NO. SIZE TYPE S/N JETS IN OUT FOOTAGE HOURS T/B/C PULLED DRILLING PARAMETERS HIGH LOW AVERAGE CURRENT AVG RATE OF PENETRATION @ @ FT/HR SURFACE TORQUE @ @ AMPS WEIGHT ON BIT @ @ KLBS ROTARY RPM @ @ RPM PUMP PRESSURE @ @ PSI DRILLING MUD REPORT DEPTH 1540 / 1540 TVD MW 9.0 VIS 46 PV 12 YP 18 FL 7.2 Gels 12 CL- 18 FC 2 SOL 4.5 SD 0.1 OIL 0/96 MBL 20 pH 8.9 Ca+ 60 CCI MWD SUMMARY INTERVAL TO TOOLS GAS SUMMARY (units) HIGH LOW AVERAGE DITCH GAS 3 @ Circ casing annulus 0 @ N/A TRIP GAS 3 CUTTING GAS @ @ WIPER GAS CHROMATOGRAPHY (ppm) SURVEY METHANE (C-1) @ @ CONNECTION GAS HIGH ETHANE (C-2) @ @ AVG PROPANE (C-3) @ @ CURRENT BUTANE (C-4) @ @ CURRENT BACKGROUND/AVG N/A PENTANE (C-5) @ @ HYDROCARBON SHOWS INTERVAL LITHOLOGY/REMARKS GAS DESCRIPTION LITHOLOGY PRESENT LITHOLOGY Continue running in 9 5/8" casing (37joints) as per Marathon program. Make up landing joint and hanger. Land out casing at 1525'. Rig down and off load Weatherford casing running tools. Install cementing head and circulating line. Circulate 3794 strokes (1 112 casing volumes) at 150spm, 290gpm, 270psi and condition mud. Record 3 units maximum of gas. Hold pre job meeting on safety and procedures for running casing. Load plugs into cementing head. Pump 40 bbls of Mud Clean II preflush with rig pumps. Switch to BJ cementing pumps. Pump 5 bbls water and pressure test lines to 2000psi. Bleed pressure. Batch cement to 12.Oppg. Drop bottom (first) wiper plug. Mix and pump 150 bbls of 12.Oppg cement slurry (340 sacks Type 1 cement plus 84 bbls mix water and DAILY accelerator chemicals). Shut down. Drop top (second) plug and pump out with 5 bbls of water. Displace cement with 106 bbls mud. ACTNITY (Total displacement is 111 bbls). There were no cement returns to the surface. Bump plug with 500psi over circulating pressure SUMMARY (970psi total pressure) and hold for 5 minutes. Bleed pressure off. Check floats. Cement in place. Flush stack and mud manifold. Blow down BJ lines. Rig down and lay down cementing head equipment. Clear and clean rig floor. Clean pits. Change out bails and elevators. Change carrier motor #1 oil and filters. Service carrier. Nipple down diverter line and knife valve. Hold pre-job meeting on procedures for running Expro wireline tools. Rig up Expro. Run thermal logging tool to determine top of cement (Top at 371'). Nipple down flowline, trip tank, fill up lines, turnbuckles, bell nipple, knife valve, DSA and spool. Nipple down and set aside stack and diverter tee. Begin mixing Flo-Pro drilling mud. Attempt to run 314" copper tubing for a top job. Could not get tubing down. Install mouse hole. Rig up spinner and pipe stop. Wait on smaller O.D. tubing to artive on location. EPOCH PERSONNEL ON BOARD 2 DAILY COST ML: 2040 RW: 410 • REPORT BY Craig Silva ~~ EPOCH 24 M MARATHON OIL COMPANY KU 21-7X Marathon Oil Company ~ EPOCEI Kenai Gas Field DAILY WELLSITE REPORT KU 21-7X REPORT FOR Rowland Lawson DATE Mar 18, 2006 DEPTH 1540 PRESENT OPERATION Testing BOPE TIME 24:00 YESTERDAY 1540 24 HOUR FOOTAGE 0 CASING INFORMATION 9 5/8" ~ 1525' DEPTH INCLINATION AZIMUTH VERTICAL DEPTH SURVEY DATA BIT INFORMATION INTERVAL CONDITION REASON NO. SIZE TYPE S/N JETS IN OUT FOOTAGE HOURS T/B/C PULLED DRILLING PARAMETERS HIGH LOW AVERAGE CURRENT AVG RATE OF PENETRATION @ @ FTlHR SURFACE TORQUE @ ~ AMPS WEIGHT ON BIT @ @ KLBS ROTARY RPM ~ ~ RPM PUMP PRESSURE @ @ PSI DRILLING MUD REPORT DEPTH 1540 / 1540 TVD MW 9.0 VIS 46 PV 12 YP 18 FL 7.2 Gels 11/19/25 CL- 200 FC 2 SOL 4.5 SD 0.1 OIL 0/96 MBL 20.0 pH 8.9 Ca+ 60 CCI MWD SUMMARY INTERVAL TO TOOLS GAS SUMMARY (units) HIGH LOW AVERAGE DITCH GAS ~ @ TRIP GAS CUTTING GAS @ @ WIPER GAS CHROMATOGRAPHY (ppm) SURVEY METHANE (C-1) @ @ CONNECTION GAS HIGH ETHANE (C-2) ~ @ AVG PROPANE {C-3) @ @ CURRENT BUTANE(C~) @ @ CURRENT BACKGROUND/AVG PENTANE (C-5) HYDROCARBON SHOWS INTERVAL LITHOLOGY/REMARKS GAS DESCRIPTION LITHOLOGY PRESENT LITHOLOGY Continue mixing Flo-Pro drilling mud in the pits. Commercial heavy grade capper tubing (0.5" ID) arrives on location. Make up and run in top job string by "sweating" solder to the cut ends and sleeve couplings of successive 10' long joints of capper tubing. Run copper tubing 370' down the backside of 9 5/8" casing. Make up tiny circulating head to 0.5" copper tubing string. Circulate water through tubing with rig water pump. Experiment with potential rates and pressures that will be used when pumping through the 0.5" tubing. Wait on BJ cementers to rig up. Hold pre-job meeting on procedures and contingences for pumping small controlled volume DAILY of cement through the tubing. Swftch over to BJ. Mix (400 sacks Class 1 cement) and pump 92 bbls of 15.Oppg cement slurry to ACTNITY surtace. Rig down BJ and blow down lines. Separate and rig down circulating assembly. Cut off copper tubing. Leave tubing below SUMMARY the cut in backside of casing, and load off the excess surtace tubing. Install pack-off and test (to 5000psi for 10 minutes). Hold pre- job meeting on procedures for handling stack. Set and nipple up stack. Install bell nipple. Rig up fill-up, bleeder and trip tank lines. Nipple up kill and check valves. Install riser, turnbuckles, kill and choke lines, drip pan and panic line. Pull wear ring. Pick up and make up test joint and equipment. Test ROPE (annular, pipe rams, blind rams, HCR, manual choke, inside and outside kill check valves, upper and IowerTopdrive Kelly cock valves, floor and dart valves, choke manifold valves 1-12) to 250psi Low! 2000psi High for 10 minutes. ~ EPOCH PERSONNEL ON BOARD 3 DAILY COST ML: 2700 RW: 410 REPORT BY Craig Silva ~~ EPOCH 25 M MARATHON OIL COMPANY KU 21-7X Marathon Oil Company El O ^T T Kenai Gas Field DAILY WELLSITE REPORT 1J (v~l(~1 KU 21-7X REPORT FOR Rowland Lawson DATE Mar 19, 2006 DEPTH 2107 PRESENT OPERATION Drilling TIME 24:00 YESTERDAY 1540 24 HOUR FOOTAGE 567 CASING INFORMATION 9 5/8" C«3 1525' DEPTH INCLINATION AZIMUTH VERTICAL DEPTH 1557 0.6 327.0 1556.87 SURVEY DATA 1744 0.6 353.5 1743.86 1871 4.4 070.6 1870.76 1998 5.7 072.9 1997.23 2124 7.8 082.0 2122.34 BIT INFORMATION INTERVAL CONDITION REASON NO. SIZE TYPE S/N JETS IN OUT FOOTAGE HOURS T/B/C PULLED 2 8.5 HCC HCM605 7104387 5x15 1540 567 5.00 In Hole DRILLING PARAMETERS HIGH LOW AVERAGE CURRENT AVG RATE OF PENETRATION 661.0 ~ 2094 16.7 @ 2077 154.7 217.2 FT/HR SURFACE TORQUE 1651 @ 2083 62 ~ 2064 981.5 1030.5 AMPS WEIGHT ON BIT 18 @ 1836 1 @ 1740 5.7 2.1 KLBS ROTARY RPM @ @ RPM PUMP PRESSURE 1132 C~3 1639 637 ~ 1863 880.8 894.7 PSI DRILLING MUD REPORT DEPTH 2057 ! 2056 TVD MW 9.2 VIS 38 PV 9 YP 18 FL 5.6 Gels 6!8/8 CL- 33000 FC 1 SOL 4.0 SD TR OIL 0196 MBL 0.0 pH 9.8 Ca+ 40 CCI MWD SUMMARY INTERVAL TO TOOLS GAS SUMMARY (units) HIGH LOW AVERAGE DITCH GAS 19 ~ 2106 0.8 @ 1804 8.3 TRIP GAS CUTTING GAS C~2 C~ WIPER GAS CHROMATOGRAPHY(ppm) SURVEY METHANE (C-1) 3810 @ 2106 74 @ 1544 1582.7 CONNECTION GAS HIGH ETHANE (C-2) ~ @ AVG PROPANE (C-3) ~ ~ CURRENT BUTANE (C-4) @ ~ CURRENT BACKGROUND/AVG 4 ! 7 PENTANE (C-5) @ ~ HYDROCARBON SHOWS NONE INTERVAL LITHOLOGY/REMARKS GAS DESCRIPTION LITHOLOGY Major Sand/Sandstone, Tuftaceous Claystone, Tuffaceous Siltstone. Minor Volcanic Ash, Tuffaceous Shale. PRESENT LITHOLOGY .........,SAND.......... Do accumulator performance test. Install wear bushing. Test 9 5/8" casing to 2000psi for 30 minutes. Blow down choke and mud line. Pickup, drift, run in, pull and rack back, and strap 100 joints (50 stands) of 5"drill pipe. Pick up and make up directional drilling DAILY bottom hole assembly. Orient MWD tools. Run in and test MWD and test failed. Pull out and discover cement in tool. Clean out ACTNITY cement and run back in hole and retest tool with success. Pull and change out MWD tool. Orient new MWD tools. Run in hole and SUMMARY test new MWD tool with success. Continue running in hole with 5" drill pipe. Pick up and make up and run in hole with 5"drill pipe to 1443'. Drill out entire shoe tract (float equipment, shoe, cement in hole) to 1540'. Drill 20' of new hole to 1560'. Mix and pump spacer. Displace hole with new Flo-Pro mud. Perform Formation Integrity Test to 14.1 EMW. Drill from 1560' to 2107' EPOCH PERSONNEL ON BOARD 4 DAILY COST ML: 2700 RW: 410 REPORT BY Craig Silva • ~~ EPOCH 26 MARATHON OIL COMPANY KU 21-7X Marathon Oil Company ~ EPOCH Kenai Gas Field DAILY WELLSITE REPORT KU 21-7X REPORT FOR John Nicholson / Rowland Lawson DATE Mar 20, 2006 DEPTH 3797 PRESENT OPERATION Drilling TIME 24:00 YESTERDAY 2107 24 HOUR FOOTAGE 1690 CASING INFORMATION 9 5/8" r~ 1525' DEPTH INCLINATION AZIMUTH VERTICAL DEPTH 2187 9.5 084.7 2184.62 2503 18.0 088.6 2490.91 SURVEY DATA 3135 26.4 087.5 3072.85 3514 21.9 114.3 3417.67 3891 18.7 126.6 3772.38 BIT INFORMATION INTERVAL CONDITION REASON NO. SIZE TYPE S/N JETS IN OUT FOOTAGE HOURS T/B/C PULLED 2 8.5 HCC HCM605 7104387 5x15 1540 2257 16.77 In Hole DRILLING PARAMETERS HIGH LOW AVERAGE CURRENT AVG RATE OF PENETRATION 1079.1 @ 2515 17.4 ~ 3625 229.1 231.7 FT/HR SURFACE TORQUE 2253 @ 3754 56 @ 2810 1001.0 1703.9 AMPS WEIGHT ON BIT 61 @ 2550. 0.3 @ 3324 5.2 10.1 KLBS ROTARY RPM @ @ RPM PUMP PRESSURE 1372 @ 3601 671 ~ 3275 1065.5 1038.4 PSI DRILLING MUD REPORT DEPTH 3564 /3464 TVD MW 9.4 VIS 43 PV 9 YP 23 FL 6.8 Gels 12/13/13 CL- 32000 FC 1 SOL 5.0 SD 0.1 OIL 0/95 MBL 4.0 pH 9.6 Ca+ 40 CCI MWD SUMMARY INTERVAL TO TOOLS GAS SUMMARY (units) HIGH LOW AVERAGE DITCH GAS 125 @ 3486 1.5 (~ 3303 16.7 TRIP GAS CUTTING GAS @ @ WIPER GAS 26 CHROMATOGRAPHY(ppm) SURVEY METHANE (C-1) 27527 ~ 3486 302 @ 3303 3369.7 CONNECTION GAS HIGH ETHANE (C-2) @ @ AVG PROPANE (C-3) @ @ CURRENT BUTANE (C-4) @ ~ CURRENT BACKGROUND/AVG 4 / 16 PENTANE (C-5) HYDROCARBON SHOWS NONE INTERVAL LITHOLOGY/REMARKS GAS DESCRIPTION Tuffaceous Siltstone. Minor Volcanic Ash, Coal/Carbonaceous Shale, Major Sand/Sandstone Tuffaceous Claystone , , LITHOLOGY Tuffaceous Shale, Calcareous Tuff, Conglomeratic Sand. PRESENT . TUFFACEOUS SILTSTONE. TUFFACEOUS CLAYSTONE .........SAND.......... „ .,,,., .......... LITHOLOGY DAILY ACTNITY Drill from 2107' to 3560'. Circulate hole clean. Check for flow. Pump dry job. Pull 32 stands out of hole to shoe on wiper trip. SUMMARY Service rig, Topdrive and crown. Remove #1 Denison driveline. Run in hole to bottom at 3560'. Drill from 3560' to 3797'. EPOCH PERSONNEL ON BOARD 4 DAILY COST ML: 2700 RW: 410 REPORT BY Craig Silva €~ EPOCH 27 "M MARATHON OIL COMPANY KU 21-7X Marathon Oil Company ~ EPOCH Kenai Gas Field DAILY WELLSITE REPORT KU 21-7X REPORT FOR John Nicholson / Rowland Lawson DATE Mar 21, 2006 DEPTH 4252 PRESENT OPERATION Drilling TIME 24:00 YESTERDAY 3797 24 HOUR FOOTAGE 455 CASING INFORMATION 9 5/8" c 1525' DEPTH INCLINATION AZIMUTH VERTICAL DEPTH 3954 18.8 131.4 3832.04 SURVEY DATA 4016 19.3 138.2 3890.65 4081 19.2 140.0 3952.02 4142 18.7 143.1 4009.72 4206 17.5 144.0 4070.55 BIT INFORMATION INTERVAL CONDITION REASON NO. SIZE TYPE S/N JETS IN OUT FOOTAGE HOURS T/B/C PULLED 2 8.5 HCC HCM605 7104387 5x15 1540 2712 19.98 In Hole DRILLING PARAMETERS HIGH LOW AVERAGE CURRENT AVG RATE OF PENETRATION 790.2 @ 4223 22.4 ~ 4023 198.3 282.4 FT/HR SURFACE TORQUE 2651 @ 4220 69 @ 4140 1477.6 1769.3 AMPS WEIGHT ON BIT 31 @ 3956 1 @ 4146 9.7 6.3 KLBS ROTARY RPM @ @ RPM PUMP PRESSURE 1253 (a3 3902 701 @ 4186 979.2 884.0 PSI DRILLING MUD REPORT DEPTH 4063 / 3935 TVD MW 9.2 VIS 45 PV 10 YP 23 FL 7.4 Gels 13/14/15 CL- 34000 FC 1 SOL 4.0 SD TR OIL 0/96 MBL 0.0 pH 9.4 Ca+ 40 CCI MWD SUMMARY INTERVAL TO TOOLS GAS SUMMARY (units) HIGH LOW AVERAGE DITCH GAS 103 ~ 3852 0 @ 4063 24.1 TRIP GAS CUTTING GAS ~ @ WIPER GAS CHROMATOGRAPHY (ppm) SURVEY METHANE (C-1) 20587 @ 3852 20 ~ 4063.00000 4809.8 CONNECTION GAS HIGH ETHANE (C-2) 15 @ 3852 0 @ 0.3 AVG PROPANE (C-3) ~ @ CURRENT BUTANE (C-4) @ @ CURRENT BACKGROUND/AVG 6 / 22 PENTANE (C-5) HYDROCARBON SHOWS NONE INTERVAL LITHOLOGY/REMARKS GAS DESCRIPTION LITHOLOGY Major Sand/Sandstone, Tuffaceous Claystone, Tuffaceous Siltstone, Tuffaceous Sandstone. Minor Volcanic Ash, Coal/Carbonaceous Shale, Conglomeratic Sand, Calcareous Tuff. PRESENT ........,,SAND/SANDSTONE..........TUFFACEOUS SANDSTONE..........CONGLOMERATIC SAND.......... LITHOLOGY Drill from 3797' to 4063'. Lose circulation. Pull 5 stands, spot 50 bbl Safecarb LCM pill #1 in drill pipe. Run in hole to 4063'. Pump and spot pill #1 on bottom. PuII out of hole 5 stands. Build pit volume. Monitor well. Mix, pump and spot 50 bbl Safecarb LCM pill #2. DAILY Continue building volume in pits and monitoring well. (Losing 20 bbls per hour). Mix, pump and spot 50 bbls Safecarb LCM pill #3. ACTIVITY Continue building volume in pits and montoring well. Mix, pump and spot 50 bbls Safecarb LCM pill #4. Continue building volume in SUMMARY pits and montoring well. (Losses reduced to 16 bbls per hour). Mix, pump and spot 50 bbls Mix II LCM pill #5. Continue building volume in pits and montoring well. Mix, pump and spot 50 bbls Mix II LCM pill #6. Continue building volume in pits and montoring well. (Losses reduced to 10 bbls per hour). Run in hole to 4063'. Drill from 4063' to 4252'. EPOCH PERSONNEL ON BOARD 4 DAILY COST ML: 2700 RW: 410 REPORT BY Craig Silva ~~ EPOC~-I 2$ M MARATHON OIL COMPANY KU 21-7X Marathon Oil Company ~T~~T T Kenai Gas Field DAILY WELLSITE REPORT ~J lu~ KU 21-7X REPORT FOR John Nicholson DATE Mar 22, 2006 DEPTH 5032 PRESENT OPERATION Circulating and conditioning TIME 24:00 YESTERDAY 4252 24 HOUR FOOTAGE 780 CASING INFORMATION 9 5/8" @ 1525 DEPTH INCLINATION AZIMUTH VERTICAL DEPTH 4270 15.8 144.9 4131.86 SURVEY DATA 4461 11.1 156.5 4317.64 4651 7.0 156.8 4505.41 4778 5.1 154.3 4631.80 4986 4.8 155.1 4839.03 BIT INFORMATION INTERVAL CONDITION REASON NO. SIZE TYPE S!N JETS IN OUT FOOTAGE HOURS T/B/C PULLED 2 8.5 HCC HCM605 7104387 5x15 1540 5032 3492 28.50 1-1-NO-A-X-1-NO-TD TD of well 3RR1 8.5 HC ATM MG1 T496W 3x20 5032 5032 0 n/a NG Clean out run only DRILLING PARAMETERS HIGH LOW AVERAGE CURRENT AVG RATE OF PENETRATION 692.6 ~ 4366 9.8 C~ 4644 157.7 46.1 FT/HR SURFACE TORQUE 2560 @ 4916 69 @ 4657 1589.0 2370.8 AMPS WEIGHT ON BIT 29 @ 4679 0.8 ~ 4575 9.7 4.5 KLBS ROTARY RPM C~ @ RPM PUMP PRESSURE 1203 @ 4680 690 ~ 4380 901.2 901.8 PSI DRILLING MUD REPORT DEPTH 5032 / 4885 TVD MW 9.2 VIS 43 PV 8 YP 18 FL 6.4 Gels 8/11/12 CL- 29000 FC 1 SOL 4.0 SD 0.1 OIL 0/96 MBL 2.0 pH 9.6 Ca+ 60 CCI MWD SUMMARY INTERVAL TO GAS SUMMARY (units) HIGH LOW AVERAGE DITCH GAS 373 ~ 4303 4 @ 4651 49.5 TRIP GAS 20 CUTTING GAS ~ @ WIPER GAS CHROMATOGRAPHY (ppm) SURVEY METHANE (C-1) 77179 @ 4303 828 @ 4651 9949.4 CONNECTION GAS HIGH ETHANE (C-2) 76 ~ 4304 0 ~ 3.8 AVG PROPANE (C-3) @ @ CURRENT BUTANE (C-4) @ @ CURRENT BACKGROUND/AVG 2 / 14 PENTANE (C-5) C~ (~ HYDROCARBON 2 zones with sign cant gas over 100 units. Poor to possibly fair gas shows. SHOWS INTERVAL LITHOLOGY/REMARKS GAS DESCRIPTION 4277-4317; 4353- Both zones have SS with mixed tuffaceous 373u Max; 50unit SD/SS/TuffSS/CoarseSS = It med gry, vf-vc, dom 4370 matrix support,and trace grain; gen appears background before/after med-c, poor to mod srtd, ang-sbrd, disaggrtd-abnt low Por, but trace individual pieces have good peaks; 220u avg thru volc ash mtnc spprt, most poor vis Por, sublith aren- vis Por interval; 110 background comp gywke thru interval LITHOLOGY Major Sand/Sandstone, Tuffaceous Sandstone, Very Coarse Sand, Volpnic Ash. Minor Tuffaceous Claystone, Tuftaceous Siltstone, Coal. PRESENT .,,,,,,,,,TUFFACEOUS SANDSTONE..........VOLCANIC ASH.......... LITHOLOGY Drill from 4252' to 5032'. Circulate bottoms up and circulate hole Gean. Spot 50 bbls of Mix II LCM at 5032'. Pull out of hole to 3680' DAILY (SLM). Pump dry job. Pull out of hole to directional assembly. Break and lay down directional assembly (CSDPs, cross-ovens, ACTNITY stabilizer, pony DC, MWD tool, motor, bit). Pick up and make up bit (old rerun), bit sub and cross-over to first stand of HWDP. Run in SUMMARY hole to shoe. Service rig and Topdrive. Run in hole to bottom at 5032'. Circulate bottoms up. Record 20 units of trip gas. Circulate and condition hole. EPOCH PERSONNEL ON BOARD 4 DAILY COST ML: 2700 RW: 410 REPORT BY Craig Silva ~~ EPOCH 29 M MARATHON OIL COMPANY KU 21-7X Marathon Oil Company ~ El OCl l Kenai Gas Field DAILY WELLSITE REPORT KU 21-7X REPORT FOR John Nicholson /Dave Morris DATE Mar 23, 2006 DEPTH 5032 PRESENT OPERATION Wireline logging TIME 24:00 YESTERDAY 5032 24 HOUR FOOTAGE 0 CASING INFORMATION 9 5J8" C~3 1525' DEPTH INCLINATION AZIMUTH VERTICAL DEPTH 5032 (Projection) 4.8 155.1 4884.87 SURVEY DATA BIT INFORMATION INTERVAL CONDITION REASON NO. SIZE TYPE S/N JETS IN OUT FOOTAGE HOURS T/B/C PULLED 3RR1 8.5 HC ATM MG1 T49BW 3x20 5032 5032 0 n!a NG Clean out run only DRILLING PARAMETERS HIGH LOW AVERAGE CURRENT AVG RATE OF PENETRATION ~ @ FTIHR SURFACETOROUE @ @ AMPS WEIGHT ON BIT C~ ~ KLBS ROTARY RPM @ ~ RPM PUMP PRESSURE @ ~ PSI DRILLING MUD REPORT DEPTH MW VIS PV YP FL Gels CL- FC SOL SD OIL MBL pH Ca+ CCI MWD SUMMARY INTERVAL TO TOOLS GAS SUMMARY (units) HIGH LOW AVERAGE DITCH GAS 6 ~ last ciro on bottom 2 @ at pump shut down N/A TRIP GAS CUTTING GAS (t~ @ WIPER GAS CHROMATOGRAPHY(ppm) SURVEY METHANE (C-1) ~ @ CONNECTION GAS HIGH ETHANE (C-2) ~ C~ AVG PROPANE (C-3) @ ~ CURRENT BUTANE (C-4) Q ~ CURRENT BACKGROUND/AVG N/A PENTANE (C-5) HYDROCARBON SHOWS INTERVAL LITHOLOGY/REMARKS GAS DESCRIPTION LITHOLOGY PRESENT LITHOLOGY Circulate hole Gean and condition hole. Check for flow. Pump dry job. Pull out of hole. Clear and clean rig floor. Fill trip tank. Blow down mud line. Service and clean Topdrive. Hold pre-job meeting with Precision Energy Services on handling wireline tools. Rig up DAILY PES. Make up Quad-Combo logging assembly. Run assembly in hole. Pull and log up from 5032' to 1500'. Pull logging assembly to ACTNfTY surtace. Hold weekly safety meeting with all hands. Wart on orders. Mix mud in pits. Monitor well (losing 12 bbls per hour). Rig down SUMMARY PES. Run in hole and then pull out of hole laying down HWDP and jars. Pick up and make up muleshce to 5" drill pipe. Run in hole with 5" drill pipe to 4041'. Rig up PES for running wireline tools. Pick up and make MFT logging assembly. Run in hole with MFT assembly. EPOCH PERSONNEL ON BOARD 3 DAILY COST ML: 2040 RW: 410 REPORT BY Craig Silva ~~ EPOCH 30 MARATHON OIL COMPANY KU 21-7X Marathon Oil Company ~. EPOCH Kenai Gas Field DAILY WELLSITE REPORT KU 21-7X REPORT FOR John Nicholson /Dave Morris DATE Mar 24, 2006 DEPTH 5032 PRESENT OPERATION Pulling out of hole with 5"drill pipe TIME 24:00 YESTERDAY 5032 24 HOUR FOOTAGE 0 CASING INFORMATION 9 5/8" ~ 1525' DEPTH INCLINATION AZIMUTH VERTICAL DEPTH SURVEY DATA BIT INFORMATION INTERVAL CONDITION REASON NO. SIZE TYPE S/N JETS 1N OUT FOOTAGE HOURS T/B/C PULLED DRILLING PARAMETERS HIGH LOW AVERAGE CURRENT AVG RATE OF PENETRATION ~ @ FT/HR SURFACE TORQUE @ @ AMPS WEIGHT ON BIT Qa @ KLBS ROTARY RPM @ @ RPM PUMP PRESSURE @ @ PSI DRILLING MUD REPORT DEPTH 5032 / 4885 TVD MW 9.2 VIS 46 PV 6 YP 18 FL 6.9 Gels 8/11/12 CL- 31000 FC 1 SOL 4.0 SD 0.1 OIL 0/96 MBL 1.0 pH 9.0 Ca+ 40 CCI MWD SUMMARY INTERVAL TO TOOLS GAS SUMMARY (units) HIGH LOW AVERAGE DITCH GAS @ @ TRIP GAS CUTTING GAS (t~ ~ WIPER GAS CHROMATOGRAPHY(ppm) SURVEY METHANE (C-1) ~ ~ CONNECTION GAS HIGH ETHANE (C-2) (c~ @ AVG PROPANE {C-3) ~ @ CURRENT BUTANE (C-4) ~ @ CURRENT BACKGROUND/AVG PENTANE (C-5) HYDROCARBON SHOWS INTERVAL LITHOLOGY/REMARKS GAS DESCRIPTION LITHOLOGY PRESENT LITHOLOGY Run in hole with Precision Energy Services MFT logging assembly (through open-ended 5" drill pipe with mule shoe set at 4041') to 4790'. log up from 4790' to 4762', but unable to get a seal when the MFT tool's testing pad is set on pressure points. Pull out of hole with MFT assembly and lay down on catwalk to inspect. Work string of 5"drill pipe up and down to avoid sticking problems and reset at 4041'. Tool pressure sensor was visibly damaged. Replace sensor. Make up, pick up and run MFT logging assembly through DAILY open pipe and down hole to 4790'. Log up and take pressure points from 4790' to 4595'. Pull MFT assembly out of hole and lay ACTIVITY aside. Work 5"drill pipe string up and down to avoid sticking problems and reset at 4041'. Pick up and run MFT assembly back in SUMMARY hole to 4469'. Log up and take pressure points from 4469' to 4081'. Pull MFT assembly out of hole and lay aside. Pu115" drill pipe out of hole and set bottom of string at 3533'. Pick up and run in MFT logging assembly back in hole through open-ended pipe to 4061'. Log up and take pressure points from 4061' to 3635'. Pull MFT logging assembly out of hole and lay aside. Work 5" drill pipe string up and down to avoid sticking problems and reset at 3533'. Pick up and run MFT assembly back in hole to 3826'. Log up and take spot repeat pressure points from 3826' to 3636'. Pull MFT assembly out of hole and lay aside. Confirm finish of logging. Break down and lay down MFT logging tools. Rig down Precision Energy Services. Pull out of hole with 5" drill pipe. EPOCH PERSONNEL ON BOARD 3 DAILY COST ML: 2040 RW: 410 Consulting: 1100 REPORT BY Craig Silva ~~ EPOCK 31 MARATHON OIL COMPANY KU 21-7X Marathon Oil Company ~ EPOCH Kenai Gas Field DAILY WELLSITE REPORT KU 21-7X REPORT FOR John Nicholson /Dave Morris DATE Mar 25, 2006 DEPTH 5032 PRESENT OPERATION Running in 5 1/2" production casing string TIME 24:00 YESTERDAY 5032 24 HOUR FOOTAGE 0 CASING INFORMATION 9 5/8" C~1 1525' SURVEY DATA DEPTH INCLINATION AZIMUTH VERTICAL DEPTH BIT INFORMATION INTERVAL CONDITION REASON NO. SIZE TYPE S/N JETS IN OUT FOOTAGE HOURS T/B/C PULLED 3RR2 8.5 HC ATM MG1 T496W 3x20 5032 5032 0 Na NG Clean out run only DRILLING PARAMETERS HIGH LOW AVERAGE CURRENT AVG RATE OF PENETRATION @ @ FT/HR SURFACE TORQUE @ @ AMPS WEIGHT ON BIT @ @ KLBS ROTARY RPM ~ ~ RPM PUMP PRESSURE C~ @ PSI DRILLING MUD REPORT DEPTH MW VIS PV YP FL Gels CL- FC SOL SD OIL MBL pH Ca+ CCI MWD SUMMARY INTERVAL TO TOOLS GAS SUMMARY (units) HIGH LOW AVERAGE DITCH GAS 20 ~ Trip gas at 5032 0 ~ shallow circulations N/A TRIP GAS 20 CUTTING GAS ~ ~ WIPER GAS CHROMATOGRAPHY (ppm) SURVEY METHANE (C-1) @ @ CONNECTION GAS HIGH ETHANE (C-2) ~ ~ AVG PROPANE (C-3) @ ~ CURRENT BUTANE (C-4) (d3 ~ CURRENT BACKGROUND/AVG N/A PENTANE (C-5) C~ HYDROCARBON SHOWS INTERVAL LITHOLOGY/REMARKS GAS DESCRIPTION LITHOLOGY PRESENT LITHOLOGY Finish pulling 5"drill pipe out of hole Break and lay down mule shoe. Pick up and make up first 2 joints of HWDP off rack. Make up 8 1!2" bit, bit sub and cross-over to first stand of HWDP and run in hole. Continue to pick up off rack, make up and run in hole HWDP (21 joints total) and jars. Make up to 5" drill pipe and continue running in hole to near shoe at 1525'. Break circulation. Observe fall off in pump pressure and suspect hole in drill pipe. Pull out of hole to top of HWDP searching for a washout, but failed to find evidence. Run bads in hole to 1525', doing a pressure test every 5 stands to double-check for possible pressure drops. Continue DAILY running in hole to 5032'. Circulate bottoms up. Record 20 units of trip gas. Circulate hole dean. Spot 50 bbl blended LCM pill of Mix ACTNITY II and Safecarb. Check for flow. Pump dry job. Pull out of hole laying down drill pipe, HWDP and jars. Break and lay down bit, bit sub SUMMARY and cross-over. Pull wear bushing. Rig down, lay down and load off spinner, rig tongs, handling tools and floor valves. Make up hanger on landing joint and do a dummy run. Lay down hanger. Clear and dean rig floor. Change bails and elevators. Rig up fill-up line. Pick up and rig up Weathertord casing running equipment. Hold pre-job meeting for all hands on procedures for running 51/2" production casing string. Pick up, make up, run in and function check casing float assembly. Pick up, make up and run in hole 5 1/2" production casing string to 1540' (shoe). Rig up circulating line and head. Circulate around (at 63spm, 123gpm, 69psi). Rig down dreulating head. Blow down line. Continue running in hole with 5 1/2" production casing string to 1622'. Pick up and install stage collar. Continue running in hole with 5 1/2" production casing string as per program. EPOCH PERSONNEL ON BOARD 3 DAILY COST ML: 2040 RW: 410 Consulting: 1100 REPORT BY Craig Silva ~~ EPOGH 32 M MARATHON OIL COMPANY KU 21-7X Marathon Oil Company EPOCH Kenai Gas Field DAILY WELLSITE REPORT KU 21-7X REPORT FOR John Nicholson /Dave Moms DATE Mar 26, 2006 DEPTH 5032 PRESENT OPERATION Running in 2 7/8"drill pipe TIME 24:00 YESTERDAY 5032 24 HOUR FOOTAGE 0 CASING INFORMATION 5 1!2" ~ 5022' SURVEY DATA DEPTH INCLINATION AZIMUTH VERTICAL DEPTH BIT INFORMATION INTERVAL CONDITION REASON NO. SIZE TYPE S/N JETS IN OUT FOOTAGE HOURS T/B/C PULLED DRILLING PARAMETERS HIGH LOW AVERAGE CURRENT AVG RATE OF PENETRATION @ @ FTlHR SURFACE TORQUE @ @ AMPS WEIGHT ON BIT @ @ KLBS ROTARY RPM @ (a3 RPM PUMP PRESSURE @ ~ PSI DRILLING MUD REPORT DEPTH 5032 / 4885 TVD MW 9.3 VIS 42 PV 7 YP 15 FL 8.2 Gels 8/10/11 CL- 30000 FC 1 SOL 4.5 SD 0.25 OIL 0/96 MBL 4.0 pH 9.0 Ca+ 30000 CCI GAS SUMMARY (units) HIGH LOW AVERAGE DITCH GAS 8 ~ Circ aroung casing 1 ~ Displacing N!A TRIP GAS 8 CUTTING GAS @ @ WIPER GAS CHROMATOGRAPHY (ppm) SURVEY METHANE (C-1) ~ ~ CONNECTION GAS HIGH ETHANE (C-2) @ ~ AVG PROPANE (C-3) @ @ CURRENT BUTANE (C-4) ~ @ CURRENT BACKGROUND/AVG 1 ! 1 PENTANE (C-5) @ (d HYDROCARBON SHOWS INTERVAL LITHOLOGY/REMARKS GAS DESCRIPTION LITHOLOGY PRESENT LITHOLOGY Continue running in hole with 5 1/2" production casing string to 5022'. Rig up circulating line and head. Circulate (at 100spm, 195gpm, SOOpsi). Circulate one bottoms up. Record 3 units of trip gas. Hold pre-job meeting on first stage cementing procedures. Rig down circulating head. Install cementing head (without plugs). Switch to BJ cementing lines. Pump 2 bbls water to fill lines and then test to 4000psi. Mix and pump 30 bbls of 10.Oppg MCS-4 sweep with cello flake (mixed with 26.2 bbls of water), followed by 101 bbls of 12.7ppg cement slurry (made by mixing 260 sacks Class G cement with red dye in the first batch plus 73.3 bbls mix water plus accelerator chemicals plus 1 sack of cello flake). Shut down after pumping cement slurry. Remove cement head cap and drop in first (1st) stage plug. Pump and displace with 5 bbls of water, followed by 110 bbls of mud (115 bbls total displacement). Bump plug (without exceeding 1500psi). Bleed off and check floats. Pressure up to 2900psi (in stage increments of 200psi) to open stage collar. Switch back to rig pumps. Circulate at 3394'. Circulate out excess cement and circulate and condition mud (at 100spm,195gpm, DAILY 190psi). Dump 105 bbls of fluid that inGudes MGS-4 sweep and contaminated mud. Shut down pumps and wait on cement. Prepare ACTNITY for second stage cement job. With ttie cementing head still in place, break circulation using rig pumps and circulate around through SUMMARY stage tool {at 100spm, 195 gpm, 190psi). Hold pre-job meeting on second stage cementing procedures. Switch to BJ cementing lines. Pump 2 bbls water to fill lines. Mix and pump 30 bbls of 10.Oppg MCS-4 sweep (mixed with 26.2 bbls of water), followed by 82.2 bbls of 13.5ppg cement slurry (made by mixing 250 sacks Class G cement plus 55.4 bbls mix water plus accelerator chemicals). Shut down after pumping cement slurry. Remove cement head cap and drop in second (2nd) stage plug. Pump and displace wtth 5 bbls of water, followed by 74 bbls of mud (79 bbls total displacement). Bump plug and close stage collar at 1500psi. Cement in place. Bleed off. Rig down cementing head and cementing lines. Lay down landing joint. Change out bails, elevator and saver sub. Rig up Weatherford to run pipe. Pick up and rig up handling tools. Strap and drift 2 7/8" drill pipe and HWDP laid out on racks. Rig up handling equipment for picking up drill pipe. Pick up and make up a the first stand of 2 7/8" HWDP, and then pick up and make up to the same stand a 4 314" bit and bit sub and run in hole. Continue picking up, making up and running in hole 2 7/8"drill pipe to top of stage collar at 3393'. Break circulation. Begin drilling out stage collar. EPOCH PERSONNEL ON BOARD 2 DAILY COST ML: 2040 RW: 410 REPORT BY Craig Silva ~~ EPOCH 33 M MARATHON OIL COMPANY KU 21-7X Marathon Oil Company ~ EPOCH Kenai Gas Field DAILY WELLSITE REPORT KU 21-7X REPORT FOR John Nicholson /Dave Morris DATE Mar 27, 2006 DEPTH 5032 PRESENT OPERATION Nippling down all lines and equipment before picking up BOPs TIME 24:00 YESTERDAY 5032 24 HOUR FOOTAGE 0 CASING INFORMATION 5 1/2" @ 5022' DEPTH INCLINATION AZIMUTH VERTICAL DEPTH SURVEY DATA BIT INFORMATION INTERVAL CONDITION REASON NO. SIZE TYPE S/N JETS IN OUT FOOTAGE HOURS T/6/C PULLED 4RR2 4.75 HTC STX-1 5009059 3x20 n/a n/a n!a n/a NG Scraper run only DRILLING PARAMETERS HIGH LOW AVERAGE CURRENT AVG RATE OF PENETRATION @ ~ FT/HR SURFACETOROUE @ ~ AMPS WEIGHT ON BIT ~ @ KLBS ROTARY RPM @ @ RPM PUMP PRESSURE @ @ PSI DRILLING MUD REPORT DEPTH Hole displace with 6% KCL Brine MW VIS PV YP FL Gels CL- FC SOL SD OIL MBL pH Ca+ CCI MWD SUMMARY INTERVAL TO TOOLS GAS SUMMARY (units) HIGH LOW AVERAGE DITCH GAS @ @ TRIP GAS CUTTING GAS @ @ WIPER GAS CHROMATOGRAPHY(ppm) SURVEY METHANE (C-1) ~ ~ CONNECTION GAS HIGH ETHANE (C-2) ~ @ AVG PROPANE (C-3) ~ ~ CURRENT BUTANE (C-4) ~ @ CURRENT BACKGROUND/AVG PENTANE (C-5) (ii? HYDROCARBON SHOWS INTERVAL LITHOLOGY/REMARKS GAS DESCRIPTION LITHOLOGY PRESENT LITHOLOGY Drill out stage DV stage collar from 3393' to 3395'. Circulate hole clean at 3395'. Hold pre-job meeting with new crew on safety and procedures for handling 2 7/8"drill pipe. Pick up drill pipe (using nubbins) and make up and run in hole from 3395' to 4939' (top of float cellar). Circulate hole dean. Pull out of hole. Handle bottom hole assembly. Stand back 16 drill cellars. Break bft. Makeup DAILY scraper run assembly. SLM scraper. Make up bit, bit sub and scraper to drill collar and run in hole. Continue running 2 7/8" drill ACTIVITY cellars and drill pipe (with nubbins) in the hole on scraper run to top of float collar at 4939'. Fill drill pipe. Rig up to test casing as per SUMMARY orders, but immediately discentinue rig up when made aware that it cannot be done without setting a packoff. Clean pill pit. Build and pump 30 bbl spacer (2ppb FIo-Vis to 30 bbls water). Displace hole with 180 bbls of 6% KCI brine with Sodium MetaBisulfite (and 1 drum of Conqor 303A). Pull out of hole from 4939' to 4350' from laying down 2 7/8"drill pipe. Rinse surface equipment with water and blow down. Pull out of hole from 4350' to 483' laying down 2 7/8"drill pipe, and from 483' to surface laying down (16) 2 7/8" drill collars. Break and lay down bit, scraper and sub. Rig down and load off Weatherford equipment. Clear and Gean rig floor. EPOCH PERSONNEL ON BOARD 2 DAILY COST ML: 2040 RW: 410 REPORT BY Craig Silva ~~ EPOCH 34 M MARATHON OIL COMPANY KU 21-7X Marathon Oil Company ~ EPOCI~ Kenai Gas Field DAILY WELLSITE REPORT KU 21-7X REPORT FOR John Nicholson /Dave Morris DATE Mar 28, 2006 DEPTH 5032 PRESENT OPERATION Rig down and move to next location TIME 24:00 YESTERDAY 5032 24 HOUR FOOTAGE 0 CASING INFORMATION 5 1/2" C~2 5022' DEPTH INCLINATION AZIMUTH VERTICAL DEPTH SURVEY DATA BIT INFORMATION INTERVAL CONDITION REASON NO. SIZE TYPE S/N JETS IN OUT FOOTAGE HOURS T/B/C PULLED DRILLING PARAMETERS HIGH LOW AVERAGE CURRENT AVG RATE OF PENETRATION @ @ FT/HR SURFACE TORQUE @ @ AMPS WEIGHT ON BIT @ ~ KLBS ROTARY RPM @ @ RPM PUMP PRESSURE @ ~ PSI DRILLING MUD REPORT DEPTH Hole displaced with 6% KCL Brine MW VIS PV YP FL Gels CL- FC SOL SD OIL MBL pH Ca+ CCI MWD SUMMARY INTERVAL TO TOOLS GAS SUMMARY (units) HIGH LOW AVERAGE DITCH GAS ~ ~ TRIP GAS CUTTING GAS ((~ @ WIPER GAS CHROMATOGRAPHY (ppm) SURVEY METHANE (C-1) @ @ CONNECTION GAS HIGH ETHANE (C-2) ~ @ AVG PROPANE (C-3) ~ @ CURRENT BUTANE (C-4) @ @ CURRENT BACKGROUND/AVG PENTANE (C-5) (d HYDROCARBON SHOWS INTERVAL LITHOLOGY/REMARKS GAS DESCRIPTION LITHOLOGY PRESENT LITHOLOGY Continue cleaning pits. Pump out and clean trip tank. Pump out Hanson tank. Flush and blow down mud pumps and all pump lines, choke and choke lines, mud manifold and all mud lines, and fill and trip lines. Rig down standpipe manifold. Rig down #3 mud pump. Flush and washout stack. Change saver sub to 4 1/2" IF. Nipple down BOPS. Remove and load off drip pan. Pull and lay down mousehole. Pull and load off pitcher nipple. Rig down flow nipple, flowline, riser, choke lines, kill lines, trip tank line, fill-up line, DAILY turnbuckles and tie-down lines. Rig down accumulator lines and panic line. Nipple down and tie down kill line valves and choke line ACTNITY in basket. Set butt plug. Chain and pull hoist rails out. Rig up bridge cranes to BOP stack. Pick up BOP stack and move out to rack SUMMARY and chain down. Nipple down and remove BOP stack and spools. Back out landing joint. (Hanger was landed in multi-bowl wellhead). Install and set 5 1i2" packoff. Run in lock-down pins. Nipple up 13 5/8" by 7" 5M tubing head adaptor and dry hole flange. Test tubing head to 5000psi. (This well will have coiled tubing hangers and a tree added above the 7" tubing head after the rig has moved). Completion is to be done without a rig. The well will be perforated and coil will be used to run the completion strings. Begin rig down and move of all Glacier No.1 rig modules, rig equipment, rig support trailers, camp trailers, camp accessory equipment and communication equipment to the KU 11-8 Workover on Pad 41-7. EPOCH PERSONNEL ON BOARD 2 DAILY COST Rig Down: 1700 REPORT BY Craig Silva • €~ EPOCH 35
