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Home My WebLink About208-0261. 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: CTCO, N2 2. Operator Name: 4. Current Well Class: 5. Permit to Drill Number: Exploratory Development 3. Address: Stratigraphic Service 6. API Number: 7. If perforating: 8. Well Name and Number: What Regulation or Conservation Order governs well spacing in this pool? Yes No 9. Property Designation (Lease Number): 10. Field: 11. Total Depth MD (ft): Total Depth TVD (ft): Effective Depth MD: Effective Depth TVD: Junk (MD): 8,737' N/A Casing Collapse Structural Conductor Surface 2,260psi Intermediate 3,090psi Production 10,530psi Liner Packers and SSSV Type: Packers and SSSV MD (ft) and TVD (ft): 12. Attachments: Proposal Summary Wellbore schematic 13. Well Class after proposed work: Detailed Operations Program BOP Sketch Exploratory Stratigraphic Development Service 14. Estimated Date for 15. Well Status after proposed work: Commencing Operations: OIL WINJ WDSPL Suspended 16. Verbal Approval: Date: GAS WAG GSTOR SPLUG AOGCC Representative: GINJ Op Shutdown Abandoned Contact Name: Contact Email: Contact Phone: Authorized Title: Conditions of approval: Notify AOGCC so that a representative may witness Sundry Number: Plug Integrity BOP Test Mechanical Integrity Test Location Clearance Other Conditions of Approval: Post Initial Injection MIT Req'd? Yes No APPROVED BY Approved by: COMMISSIONER THE AOGCC Date: Comm. Comm. Sr Pet Eng Sr Pet Geo Sr Res Eng N/A; N/A N/A; N/A 8,648' 8,624' 8,535' Kenai Beluga/Up Tyonek Gas 20" 13-3/8" See Schematic 3800 Centerpoint Drive, Suite 1400 Anchorage, Alaska 99503 Kenai Beluga Unit (KBU) 41-18XCO 510C Same 8,571'3-1/2" ~3,249psi 8,660' N/A Length November 25, 2025 3-1/2" 8,660' Perforation Depth MD (ft): 5,458' See Schematic 5,750psi 5,020psi 139' 5,374' 139' 1,500' Size 139' 9-5/8"5,458' 1,500' MD Hilcorp Alaska, LLC Proposed Pools: 9.3# / L-80 TVD Burst 8,660' 10,160psi 1,500' Tubing MD (ft):Perforation Depth TVD (ft): Subsequent Form Required: STATE OF ALASKA ALASKA OIL AND GAS CONSERVATION COMMISSION APPLICATION FOR SUNDRY APPROVALS 20 AAC 25.280 FEDA028100 208-026 50-133-20575-00-00 Tubing Size: PRESENT WELL CONDITION SUMMARY Stefan Reed, Operations Engineer AOGCC USE ONLY Tubing Grade: stefan.reed@hilcorp.com 206-518-0400 Noel Nocas, Operations Manager 907-564-5278 Suspension Expiration Date: Will perfs require a spacing exception due to property boundaries? Current Pools: MPSP (psi): Plugs (MD): 17. I hereby certify that the foregoing is true and the procedure approved herein will not be deviated from without prior written approval. Authorized Name and Digital Signature with Date: m n P s 66 t 2 N Form 10-403 Revised 06/2023 Approved application valid for 12 months from date of approval.Submit PDF to aogcc.permitting@alaska.gov Digitally signed by Noel Nocas (4361) DN: cn=Noel Nocas (4361) Date: 2025.11.13 17:28:00 - 09'00' Noel Nocas (4361) 325-700 By Grace Christianson at 8:42 am, Nov 14, 2025 Perforate SFD 11/14/2025BJM 11/18/25 10-404 JLC 11/19/2025 11/20/25 Well Prognosis Well: KBU 41-18X Date: November 2025 Well Name: KBU 41-18X API Number: 50-133-20575-00 Current Status: Producing Gas Well Permit to Drill Number: 208-026 Regulatory Contact: Donna Ambruz (907) 777-8305 (O) First Call Engineer: Stefan Reed (907) 777-8433 (O) (206) 518-0400 (C) Second Call Engineer: Chad Helgeson (907) 777-8405 (O) (907) 229-4824 (C) Maximum Expected BHP: ~ 4,100 psi @ 8,507 TVD (Based on offset wells) Max. Predicted Surface Pressure: ~ 3,249 psi (0.10 psi/ft gas gradient) Applicable Frac Gradient: 0.74psi/ft using FIT from 3/26/2008 Shallowest Perf Depth: 3,249 psi/(0.74-0.1) = 5,076 TVD Top of Pools Per CO 510C: Top of Beluga/Upper Tyonek is 4,807 MD (4,743 TVD) Brief Well Summary KBU 41-18X was drilled as a Grass roots Excape completion in March 2008 to target gas sands in the Beluga and Tyonek formations. The initial perforations came on at ~4mmscfd. The well has remained online with slow decline and minimal interventions since initial production in 2008. The well is currently producing at ~450mscfd The purpose of this work/sundry is to perform a fill cleanout down to the shoe track at ~8623 and mill out the float collar to add perforations in the Tyonek sands. All perforations will be in the existing Beluga/Upper Tyonek Pool, per CO 510C. Notes Regarding Wellbore Condition SL tagged fill @ 7,232 w/ 2.5 bailer, 22-July-2025 SL tagged fill @ 7,234 w/ 1.75 bailer, 17-Nov-2023 SL tagged fill @ 7,775 w/ 2.5 bailer, 10-Jan-2014 Coil washed down to 8,593 CTM 13-Jun-2008 Coil Tubing/E-Line Procedure 1. MIRU Coil Tubing 2. Test BOPs to 250psi low / 3500psi high a. Provide 24-hour notice to AOGCC for witness 3. RIH w/ motor mill BHA. 4. Clean out well to float collar (~8,623) using 6% KCL. 5. Attempt to mill through float collar and continue clean out to float shoe. 6. MIRU e-line on to coil BOPEs. 7. RIH w/ GR/CCL to confirm clean out depth. a. Repeat steps 3-6 as needed to achieve desired depth. 8. RIH w/ coil clean out BHA. Circulate out fluid with N2 and trap pressure on well. 9. RDMO coil. E-Line Procedure 1. MIRU E-line, PT lubricator to 250 psi low and 3,500 psi high 2. Perforate proposed intervals per table below: Well Prognosis Well: KBU 41-18X Date: November 2025 Sands Top (MD) Btm (MD) Top (TVD) Btm (TVD) FT TY 72-8 ±7,366 ±7,380 ±7,278 ±7,292 ±14 TY 75-8 ±7,658 ±7,678 ±7,570 ±7,590 ±20 UT 4D ±8,238 ±8,252 ±8,150 ±8,163 ±14 84-6 ±8,596' ±8,631' ±8,507' ±8,542' ±35' 84-6 sand perforation depth will depend on depth achieved during clean out and milling float collar. 3. Make correlation pass and send log in to Operations Engineer, Reservoir Engineer and the Geologist. a. Record initial and 5/10/15 minute tubing pressures after firing, b. Pending well production, all of the proposed perf interval may not be perforated, or interval may be reperforated at RE/GEO discretion based on production results. c. If any zone produces sand and/or water or needs isolated, RIH and set plug above the perforations or patch across perforations. d. If necessary, use nitrogen to pressure up well during perforating or to depress water prior to setting a plug above perforations e. Above perfs are in the Beluga/Upper Tyonek Gas Pool governed by CO 510C 4. RDMO e-line. 5. Turn well over to production. Attachments: 1. Current Wellbore Schematic 2. Proposed Wellbore Schematic 3. Tubing Tally Section 4. Coil BOP Schematic 5. Standard Nitrogen Procedure Lease: State/Prov:Alaska Country:USA Angle/Perfs: BHP: BHT: 131 66' 1/13/2010Revised By:James Ostroot Last Revison Date: Perforations (MD): Well Name & Number:KBU 41-18X Kenai Gas Field County or Parish:Kenai Peninsula Borough Perf (TVD): Completion Fluid:6% KCL Dated Completed:Ground Level (MSL): Angle @ KOP and Depth: TD 8,737' MD 8,648' TVD Excape System Details - 13 Excape modules placed -Green control line for bottom 3 modules -Yellow control line for modules 4 - 8 -Red control line for modules 9 - 13 - All modules w/ flappers above module 1 are disappearing flapper versions. Perfs MD (RKB): Module 13 - 6,088 feet - 6,098 ft Module 12 - 6,262 feet - 6,272 ft Module 11 - 6,414 feet - 6,424 ft Module 10 - 6,594 feet - 6,604 ft Module 9 - 6,820 feet - 6,830 ft Module 8 - 6,880 feet - 6,890 ft Module 7 - 6,932 feet - 6,942 ft Module 6 - 7,020 feet - 7,030 ft Module 5 - 7,205 feet - 7,215 ft Module 3a - 7,446 feet - 7,456 ft Module 3 - 7,496 feet - 7,506 ft Module 2 - 7,720 feet - 7,730 ft Module 1 - 8,570 feet - 8,580 ft Top of Cement (est.) 4,000' above 3.5" shoe @ 1,458' MD Excape System Details - Ceramic flapper valves below each module as follows: Modules 3 & 4 connected w/flapper below Module 3. Modules 8 & 9 connected w/flapper below Module 8 Flappers MD (RKB): Module 13 - 6,111' Module 12 - 6,286' Module 11 - 6,437' Module 10 - 6,618' Module 9 - NA Module 8 - 6,909' Module 7 - 6,955' Module 6 - 7,044' Module 5 - 7,229' Module 4 - NA Module 3 - 7,519' Module 2 - 7,737' Module 1 - NA Conductor 20" K-55 133 ppf PE Top Bottom MD 0' 139' TVD 0' 139' Surface Casing 13-3/8" L-80 68 ppf BTC Top Bottom MD 0' 1,500' TVD 0' 1,500' 16" hole, Cmt w/ 207 bbls 12 ppg, Type 1 Cmt Intermediate Casing 9-5/8" L-80 40 ppf BTC Top Bottom MD 0' 5,458' TVD 0' 5,374' 12-1/4" hole, Cmt w/ 281 sks (166 bbls) 10.5 ppg Class G cmt. Production Tubing 3-1/2" L-80 9.3 ppf EUE Top Bottom MD 0' 8,660' TVD 0' 8,571' 8rd with 6.25" OD control line protectors to 8,660' RKB. 8-1/2"hole, Cmt w/ 1,465 sks (302 bbls) 15.8 ppg Class G cmt. KBU 41-18X Pad 41-18 444'FNL X 539' FEL Sec. 18, T4N, R11W, S.M. 9-5/8" Casing Shoe @ 5,458' MD Excape Float Shoe @ 8,660' MD PBTD 8,624' MD 8,535' TVD Tag @ 8,258' 1/13/10 2.45" GR Permit #:208-0260 API #:50-133205750000 Property Des:A - 028100 KB:21' AGL (88' KB Elevation) X=274939.6 Y=2362144.95 Lat:60° 26' 35.855" N Long:151° 14' 47.610" W Spud:16:00 hrs 3/14/2008 TD Reached:3/27/2008 NOTE: 3-1/2" shoe is set at 8660' MD. SFD ? SFD PROPOSED Lease: State/Prov:Alaska Country:USA Angle/Perfs: BHP: BHT: 131 66' 11/11/2025Revised By:Stefan Reed Last Revison Date: Perforations (MD): Well Name & Number:KBU 41-18X Kenai Gas Field County or Parish:Kenai Peninsula Borough Perf (TVD): Completion Fluid:6% KCL Dated Completed:Ground Level (MSL): Angle @ KOP and Depth: TD 8,737' MD 8,648' TVD Excape System Details - 13 Excape modules placed -Green control line for bottom 3 modules -Yellow control line for modules 4 - 8 -Red control line for modules 9 - 13 - All modules w/ flappers above module 1 are disappearing flapper versions. Perfs MD (RKB): Module 13 - 6,088 feet - 6,098 ft Module 12 - 6,262 feet - 6,272 ft Module 11 - 6,414 feet - 6,424 ft Module 10 - 6,594 feet - 6,604 ft Module 9 - 6,820 feet - 6,830 ft Module 8 - 6,880 feet - 6,890 ft Module 7 - 6,932 feet - 6,942 ft Module 6 - 7,020 feet - 7,030 ft Module 5 - 7,205 feet - 7,215 ft Module 3a - 7,446 feet - 7,456 ft Module 3 - 7,496 feet - 7,506 ft Module 2 - 7,720 feet - 7,730 ft Module 1 - 8,570 feet - 8,580 ft Top of Cement (est.) 4,000' above 3.5" shoe @ 1,458' MD Excape System Details - Ceramic flapper valves below each module as follows: Modules 3 & 4 connected w/flapper below Module 3. Modules 8 & 9 connected w/flapper below Module 8 Flappers MD (RKB): Module 13 - 6,111' Module 12 - 6,286' Module 11 - 6,437' Module 10 - 6,618' Module 9 - NA Module 8 - 6,909' Module 7 - 6,955' Module 6 - 7,044' Module 5 - 7,229' Module 4 - NA Module 3 - 7,519' Module 2 - 7,737' Conductor 20" K-55 133 ppf PE Top Bottom MD 0' 139' TVD 0' 139' Surface Casing 13-3/8" L-80 68 ppf BTC Top Bottom MD 0' 1,500' TVD 0' 1,500' 16" hole, Cmt w/ 207 bbls 12 ppg, Type 1 Cmt Intermediate Casing 9-5/8" L-80 40 ppf BTC Top Bottom MD 0' 5,458' TVD 0' 5,374' 12-1/4" hole, Cmt w/ 281 sks (166 bbls) 10.5 ppg Class G cmt. Production Tubing 3-1/2" L-80 9.3 ppf EUE Top Bottom MD 0' 8,660' TVD 0' 8,571' 8rd with 6.25" OD control line protectors to 8,660' RKB. 8-1/2"hole, Cmt w/ 1,465 sks (302 bbls) 15.8 ppg Class G cmt. KBU 41-18X Pad 41-18 444'FNL X 539' FEL Sec. 18, T4N, R11W, S.M. 9-5/8" Casing Shoe @ 5,458' MD Excape Float Shoe @ 8,660' MD PBTD 8,624' MD 8,535' TVD Permit #:208-0260 API #:50-133205750000 Property Des:A - 028100 KB:21' AGL (88' KB Elevation) X=274939.6 Y=2362144.95 Lat:60° 26' 35.855" N Long:151° 14' 47.610" W Spud:16:00 hrs 3/14/2008 TD Reached:3/27/2008 Proposed Perforations Mill through float collar. STANDARD WELL PROCEDURE NITROGEN OPERATIONS 12/08/2015 FINAL v1 Page 1 of 1 1.) MIRU Nitrogen Pumping Unit and Liquid Nitrogen Transport. 2.) Notify Pad Operator of upcoming Nitrogen operations. 3.) Perform Pre-Job Safety Meeting. Review Nitrogen vendor standard operating procedures and appropriate Safety Data Sheets (formerly MSDS). 4.) Document hazards and mitigation measures and confirm flow paths. Include review on asphyxiation caused by nitrogen displacing oxygen. Mitigation measures include appropriate routing of flowlines, adequate venting and atmospheric monitoring. 5.) Spot Pumping Unit and Transport. Confirm liquid N2 volumes in transport. 6.) Rig up lines from the Nitrogen Pumping Unit to the well and returns tank. Secure lines with whip checks. 7.) Place signs and placards warning of high pressure and nitrogen operations at areas where Nitrogen may accumulate or be released. 8.) Place pressure gauges downstream of liquid and nitrogen pumps to adequately measure tubing and casing pressures. 9.) Place pressure gauges upstream and downstream of any check valves. 10.) Wellsite Manager shall walk down valve alignments and ensure valve position is correct. 11.) Ensure portable 4-gas detection equipment is onsite, calibrated, and bump tested properly to detect LEL/H2S/CO2/O2 levels. Ensure Nitrogen vendor has a working and calibrated detector as well that measures O2 levels. 12.) Pressure test lines upstream of well to approved sundry pressure or MPSP (Maximum Potential Surface Pressure), whichever is higher. Test lines downstream of well (from well to returns tank) to 1,500 psi. Perform visual inspection for any leaks. 13.) Bleed off test pressure and prepare for pumping nitrogen. 14.) Pump nitrogen at desired rate, monitoring rate (SCFM) and pressure (PSI). All nitrogen returns are to be routed to the returns tank. 15.) When final nitrogen volume has been achieved, isolate well from Nitrogen Pumping Unit and bleed down lines between well and Nitrogen Pumping Unit. 16.) Once you have confirmed lines are bled down, no trapped pressure exists, and no nitrogen has accumulated begin rig down of lines from the Nitrogen Pumping Unit. 17.) Finalize job log and discuss operations with Wellsite Manager. Document any lessons learned and confirm final rates/pressure/volumes of the job and remaining nitrogen in the transport. 18.) RDMO Nitrogen Pumping Unit and Liquid Nitrogen Transport. DATA SUBMITTAL COMPLIANCE REPORT 3/8/2011 Permit to Drill 2080260 Well Name /No. KENAI UNIT 41 -18X Operator MARATHON OIL CO API No. 50- 133 - 20575 -00-00 MD 8737 TVD 8648 Completion Date 6/5/2008 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: (data taken from Logs Portion of Master Well Data Maint Well Log Information: Log/ Electr Data Digital Dataset Log Log Run Interval OH / Typ> Med /Frmt Number me Scale Media No Start Stop CH Received Comments D C Las 16646Ufnduction /Resistivity 5226 8750 Open OH logs, Mudlogs, EOW Rpt Multiple digital formats pt Report: Final Well R Open Final Well Report, Muglog Equip & Crew, Gen Well Details, Geo Data, Drill Data, Daily Reports Log Mud Log 2 Col 139 8740 Open MD Formation Log og Mud Log 2 Col 139 8740 Open TVD Formation Log L'tog Mud Log 2 Col 139 8740 Open MD Drilling Dynamics Log Mud Log 2 Col 139 8740 Open TVD Drilling Dynamics og Induction /Resistivity 5 Blu 3000 5500 Open MD Compact Quad Combo 0 Log g Induction /Resistivity OTH Blu 5390 8720 Open MD Compact Quad Combo Log 2" per 100' and 10" per 100' .g Induction /Resistivity 5 Blu 5458 8730 Open MD Array Induction, Vectar Processing Log Induction /Resistivity 5 Blu 5458 8730 Open MD Array Induction og Induction /Resistivity 2 Blu 5374 8641 Open TVD Array Induction og Density OTH Blu 5458 8694 Open MD Photo Density, Dual Space Neutron 10" per 100' DATA SUBMITTAL COMPLIANCE REPORT 3/8/2011 Permit to Drill 2080260 Well Name /No. KENAI UNIT 41 -18X Operator MARATHON OIL CO API No. 50- 133 - 20575 -00-00 MD 8737 TVD 8648 Completion Date 6/5/2008 Completion Status 1 -GAS Current Status 1 -GAS UIC N og Caliper log 5 Blu 5458 8693 Open MD Hole Volume, Caliper Log og Sonic 2 Blu 5458 8720 Open MD Compensated Sonic Log Log Formation Micro-+nme Tk't°o- 5 Blu 494 8631 Open MD Formation Tester 411 og Cement Evaluation 5 Blu 4400 8720 Case MD Dual Radial CBL, GR, CCL D C Exc Directional Survey 0 8797 Open Well Cores /Samples Information: Sample Interval Set Name Start Stop Sent Received Number Comments ADDITIONAL INFORMATION Well Cored? Yr) Daily History Received? Y Chips Received? _(_L_N_- Formation Tops / N Analysis Y1Dl- Received? Comments: 6 1 Compliance Reviewed By: . _ '� D k )'■V • • Marathon Oil Company Alaska Asset Team Marathon P.O. Box 1949 Kenai, AK 99611 MARATHON OII COrnpany Telephone 907/283 -1371 Fax 907/283 -1350 July 23, 2008 x M1 Mr. Tom Maunder A Alaska Oil & Gas Conservation Commission �� 333 W 7 Ave Anchorage, Alaska 99501 Reference: 10 -421 Gas Well Open Flow Potential Test Report Field: Kenai Gas Field Well: Kenai Beluga Unit 41 -18x Dear Mr. Maunder: Enclosed for your records is the revised Gas Well Open Flow Potential Test Report, 10- 421, for KBU 41 -18x well. Corrections have been made to the well location information in sections 4a and 4b. The completion and TD dates were added to sections 5 and 6 respectively. All revisions are indicated with blue type. Please contact me at (907) 283 -1371 if you have any questions or need additional information. Sincerely, xim jt;pt.) Kevin J. Skiba Engineering Technician Enclosures: 10 -421 Open Flow Report cc: Houston Well File Kenai Well File KJS off 6 STATE OF ALASKA .or'W‘r ALA OIL AND GAS CONSERVATION COM SION GAS WELL OPEN FLOW POTENTIAL TEST REPORT la. Test: L] Initial 11 Annual 11 Special 1 b. Type Test: U Stabilized U Non Stabilized U Multipoint LI Constant Time El Isochronal ❑ Other 2. Operator Name: 5. Date Completed: 11. Permit to Drill Number: Marathon Oil Company 6/5/2008 208 - 026 3. Address: P.O. Box 1949 6. Date TD Reached: 12. API Number: Kenai, Alaska 99611 - 1949 3/27/2008 50 - 133 - 20575 - 00 - 00 4a. Location of Well (Governmental Section): 7. KB Elevation (ft): 13. Well Name and Number: Surface: 444' FNL, 539' FEL, Sec 18, T4N, R11W, S.M. 88' (21' AGL) Kenai Beluga Unit 41 - 18x Top of Productive Horizon: 8. Plug Back Depth(MD +TVD): 14. Field /Pool(s): 61' FNL, 1,008' FEL, Sec 18, T4N, R11W, S.M. 8,624' MD 8,535' TVD Kenai Gas Field / Total Depth: 9. Total Depth (MD + TVD): Beluga & Upper Tyonek Pools 23' FSL, 1,040' FEL, Sec 7, T4N, R11W, S.M. 8,737' MD 8,648' TVD 4b. Location of Well (State Base Plane Coordinates): 10. Land Use Permit: 15. Property Designation: Surface: x - 275,272.0 Y 2,356,284.9 Zone 4 A - 028100 TPI: x 274,833.0 y - 2,356,801.2 Zone 4 16. Type of Completion (Describe): Total Depth: x - 274,802.3 Y 2,356,885.7 Zone 4 13 Module Excape 17. Casing Size Weight per foot, Ib. I.D. in inches Set at ft. 19. Perforations: (MD) From To 9 - 5/8" 40 8.835" 5,458' Mod 13 6,088' 6,098' Mod 12 6,262' 6,272' Mod 11 6,414' 6,424' Mod 10 6,594' 6,704' Mod 9 &8 6,820' 6,890' Mod 6 7,020' 7,039' Mod 5 7,205' 7,215' 18. Tubing Size Weight per foot, Ib. I.D. in inches Set at ft. Mod 4 &3 7,446' 7,506' 3 - 1/2" 9.3 2.992" 8,660' Mod 2 7,720' 7,730' 20. Packer set at ft: 21. GOR cf /bbl: 22. API Liquid Hydrocardbons: 23. Specific Gravity Flowing Fluid (G): NA - - 0.56 24a. Producing through: 24b. Reservoir Temp: 24c. Reservoir Pressure: 24d. Barometric Pressure (Pa): 0 Tubing Ei Casing 116 F° 916 psia @ Datum 8535' TVDSS 14.73 psia 25. Length of Flow Channel (L): Vertical Depth (H): Gg: % CO % N % H Prover: Meter Run: Taps: 6088' MD 6000' TVD 0.56 0 - Facility - 26. FLOW DATA TUBING DATA CASING DATA Prover Choke Pressure Diff. Temp. Pressure Temp. Pressure Temp. Duration of Flow No. Line )( Orifice psig Hw F° psig F psig F Hr. Size (in.) Size (in.) 1. 3.826 X 1.00 760 21.45 52 - - - - 4.00 2. X 3. X Basic Coefficient Flow Temp. Super Comp. No. (24 -Hour) hwPm Pressure Factor Gravity Factor Factor Rate of Flow Fb or Fp Pm Ft Fg Fpv Q Mcfd 1. 131.926 33.398 774.73 1.00 1.336 1.066 4,406 2. Temperature for Separator for Flowing No. Pr T Tr z Gas Fluid Gg G 1. 1.15 512 1.49 0.88 0.56 NA 2 Critical Pressure 673.1 3 Critical Temperature 343.2 Form 10 -421 Revised 1/2004 CONTINUED ON REVERSE SIDE Submit in Duplicate ` l a l Pc 2894 pc r pf No. Pt Pt Pc Pw Pw Pc Ps Ps Pf -Ps 1. 775 600206.5729 2. 3. 4. 5. 25. AOF (Mcfd) 4,659 n 0.750 Remarks: SITP was calculated based on average SIBHP obtained from MFT data. A one point test is conducted to calculate AOF. I hereby certif that the foregoing is true nd rrect to the best of my knowledge. Signed . Title Engineering Technician Date July 23, 2008 DEFINITIONS OF SYMBOLS AOF Absolute Open Flow Potential. Rate of Flow that would be obtained if the bottom hole pressure opposite the producing face were reduced to zero psia Fb Basic orifice factor Mcfd / - hwPm Fp Basic critical flow prover or positive choke factor Mcfd /psia Fg Specific gravity factor, dimensionless Fpv Super compressibility factor= /1 Z dimensionless Ft Flowing temperature factor, dimensionless G Specific gravity of flowing fluid (air= 1.000), dimensionless Gg Specific gravity of separator gas (air= 1.00), dimensionless GOR Gas -oil ratio, cu. ft. of gas (14.65 psia and 60 degrees F) per barrel oil (60 degrees F) hw Meter differential pressure, inches of water H Vertical depth corresponding to L, feet (TVD) L Length of flow channel, feet (MD) n Exponent (slope) of back - pressure equation, dimensionless Pa Field barometric pressure, psia Pc Shut -in wellhead pressure, psia Pf Shut -in pressure at vertical depth H, psia Pm Static pressure at point of gas measurement, psia Pr Reduced pressure, dimensionless Ps Flowing pressure at vertical depth H, psia Pt Flowing wellhead pressure, psia Pw Static column wellhead pressure corresponding to Pt, psia O Rate of flow, Mcfd (14.65 psia and 60 degrees F) Tr Reduced temperature, dimensionless T Absolute temperature, degrees Rankin Z Compressibility factor, dimensionless Recommended procedures for tests and calculations may be found in the Manual of Back- Pressure Testing of Gas Wells, Interstate Oil Compact Commission, Oklahoma City, Oklahoma. Form 10 -421 Revised 1/2004 Side 2 Marathon Oil Company Alaska Asset Team M Marathon P.O. Box 1949 Kenai, AK 99611 M ARATHON Oil Company Telephone 907/283 -1371 Fax 907/283 -1350 July 23, 2008_ Mr. Tom Maunder .i, 4, a Alaska Oil & Gas Conservation Commission Z�Q8 333 W 7 Ave Anchorage, Alaska 99501 a Shy Reference: 10 -407 Well Completion Report and Log Field: Kenai Gas Field Well: Kenai Beluga Unit 41 -18x Dear Mr. Maunder: Enclosed please find the revised 10 -407 Well Completion Report and Log for Kenai Gas Field well KBU 41 -18x. Corrections have been made to the well location information in sections 4a and 4b. All revisions are indicated in blue type. Please call me at (907) 283 -1371 if you have any questions or require additional information. Sincerely, k t-a - vt-> Kevin J. Skiba Engineering Technician Enclosures: 10 -407 Well Completion Report cc: Houston Well File Kenai Well File KJS . STATE OF ALASKA H 9 r - ;�:, 0��08 AL KA OIL AND GAS CONSERVATION COM SS-ION t. ` ` 'u ' WELL COMPLETION OR RECOMPLE A .REPORTANDUOG Oil E Gas 0 Plugged fl Abandoned ❑ Suspended E ilb. Weil Class: 20AAC 25.105 20AAC 25.110 Development 0 Exploratory❑ GINJE WINJ❑ WDSPL❑ WAG D Other No. of Completions: 1 Service 0 StratigraphicTest❑ 2. Operator Name: 5. Date Comp., Susp., or 12. Permit to Drill #: 208 - 026 Marathon Oil Company Aband.: 6/5/2008 Sundry #: 308 - 162 3. Address: PO Box 1949 6. Date Spudded: 13. API Number: Kenai Alaska, 99611 - 1949 March 14, 2008 50 133 - 20575 - 00 - 00 4a. Location of Well (Governmental Section): 7. Date TD Reached: 14. Well Name and Number: Surface: 444' FNL, 539' FEL, Sec 18, T4N, R11W, S.M. March 27, 2008 Kenai Beluga Unit 41 -18x Top of Productive Horizon: 8. KB (ft above MSL): 88' 15. Field /Pool(s): 61' FNL, 1,008' FEL, Sec 18, T4N, R11W, S.M. Ground (ft MSL): 67' Kenai Gas Field / Total Depth: 9. Plug Back Depth(MD +TVD): Beluga & Upper tyonek Pools 23' FSL, 1,040' FEL, Sec 7, T4N, R11W, S.M. 8,624' MD 8,535' TVD 4b. Location of Well (State Base Plane Coordinates, NAD 27): 10. Total Depth (MD + TVD): 16. Property Designation: Surface: x- 275,272.0 y- 2,356,284.9 Zone- 4 8,737' MD 8,648' TVD A - 028100 TPI: x- 274,833.0 y- 2,356,801.2 Zone- 4 11. SSSV Depth (MD + TVD): 17. Land Use Permit: Total Depth: x- 274,802.3 y- 2,356,885.7 Zone- 4 NA 18. Directional Survey: Yes 0 No 0 19. Water Depth, if Offshore: 20. Thickness of Permafrost (TVD): (Submit electronic and printed information per 20 AAC 25.050) NA (ft MSL) NA 21. Logs Obtained (List all logs here and submit electronic and printed information per 20 AAC 25.071): 22. CASING, LINER AND CEMENTING RECORD WT. PER SETTING DEPTH MD SETTING DEPTH TVD AMOUNT CASING GRADE TOP BOTTOM TOP BOTTOM HOLE SIZE CEMENTING RECORD FT PULLED 20" 133 K -55 0' 139' 0' 139' Driven 13 -3/8" 68 L -80 0' 1,500' 0' 1,500' 16" 468 sks, Type 1 NA 9 -5/8" 40 L -80 0' 5,458' 0' 5,374' 12 -1/4" 281 sks, Class G NA 3 -1/2" 9.3 L -80 0' 8,660' 0' 8,571' 8 -1/2" 1,465 sks, Class G NA 23. Open to production or injection? Yes 0 Non If Yes, list each 24. TUBING RECORD interval open (MD +TVD of Top & Bottom; Perforation Size and Number): SIZE DEPTH SET (MD) PACKER SET (MD) Module MD TVD 13 6,088'- 6,098' 6,000' - 6,010' 25. ACID, FRACTURE, CEMENT SQUEEZE, ETC. 12 6,262' - 6,272' 6,174'- 6,184' DEPTH INTERVAL (MD) AMOUNT AND KIND OF MATERIAL USED 11 6,414'- 6,424' 6,326'- 6,336' 6,088'- 6,098' 22,130 Ib of 20/40 sand & 3,163 Ib of flex sand 10 6,594'- 6,704' 6,506' - 6,616' 6,262'- 6,272' 16,511 Ib of 20/40 sand & 2,362 Ib of flex sand 9 & 8 6,820' - 6,890' 6,732'- 6,802' 6,414' - 6,424' 1,214 Ib of 20/40 sand 6 7,020'- 7,039' 6,732' - 6,942' 6,594' - 6,704' 28,157 Ib of 20/40 sand 5 7,205'- 7,215' 7,117'- 7,127' 6,820' - 6,890' 35,339 Ib of 20/40 sand & 5,053 Ib of flex sand 4 & 3 7,446'- 7,506' 7,358'- 7,418' 7,020'- 7,039' 9,416 Ib of 20/40 sand & 1,347 Ib of flex sand 2 7,720'- 7,730' 7,632' - 7,642' 7,205'- 7,215' 26,279 Ib of 20/40 sand & 3,758 Ib of flex sand 7,446'- 7,506' 17,412 Ib of 20/40 sand & 2,492 Ib of flex sand 7,720'- 7,730' 10,586 Ib of 20/40 sand / flex sand 26. PRODUCTION TEST Date First Production: 6/12/2008 Method of Operation (Flowing, gas lift, etc.): Flowing Date of Test: Hours Tested: Production for Oil -Bbl: Gas -MCF: Water -Bbl: Choke Size: Gas -Oil Ratio: 6/17/2008 24 Test Period -► 0 4,494 89 64/64 100% Gas Flow Tubing Casing Press: Calculated Oil -Bbl: Gas -MCF: Water -Bbl: Oil Gravity - API (corr): Press. 750 0 24 -Hour Rate . 0 4,494 89 NA 27. CORE DATA Conventional Core(s) Acquired? Yes ❑ No 0 Sidewall Cores Acquired? Yes ❑ No 0 If Yes to either question, list formations and intervals cored (MD +TVD of top and bottom of each), and summarize lithology and presence of oil, gas or water (submit separate sheets with this form, if needed). Submit detailed descriptions, core chips, photographs and laboratory analytical results per 20 AAC � PLETLQtE , , %,%/I Form 10 -407 Revised 2/2C0 R I G I N A LCONTINUED ON REVERSE F` !; / BFL AUG 2 7 2008 � a1 28. GEOLOGIC MARKERS (List all formations and rs encountered): 29. FORMATION TESTS NAME M TVD Well tested? [ JYes o If yes, list intervals and formations tested, briefly summarizing test results. Attach separate sheets to this form, if needed, and submit Permafrost - Top detailed test information per 20 AAC 25.071. Permafrost - Base M. Beluga 5,500 5,415 L. Beluga 6,236 6,148 MFT pressure testing showed pressure gradients from 0.36 psi/ft to 0.51 psi/ft. Top Tyonek 7,330 7,242 72 -8 Sd 7,355 7,267 MFT pressure testing showed pressure gradients from 0.24 psi/ft to 0.57 psi/ft. 73 -1 Sd 7,412 7,324 MFT pressure testing showed pressure gradients from 0.33 psi/ft to 0.59 psi/ft. 75-8 Sd 7,654 7,566 MFT pressure testing showed pressure gradient of 0.40 psi/ft. 76 -7 Sd 7,765 7,677 78 -2 Sd 7,930 7,842 80 -8 Coal 8,159 8,071 84 -6 Sd 8,500 8,411 MFT pressure testing showed pressure gradient of 0.63 psi/ft. 84 -6 Coal 8,676 8,587 86 -2 Sd 8,713 8,624 Formation at total depth: 86-2 Sand 8,740 8,651 30. List of Attachments: 31. I hereby certify that the foregoing is true and correct to the best of my knowledge. Contact: Kevin Skiba (907) 283 -1371 Printed Name: Kevin J. Skiba Title: Engineering Technician Signature: , ,,&(JLt,(„ / , i (907) 283 -1371 Date: July 23, 2008 INSTRUCTIONS General: This form is designed for submitting a complete and correct well completion report and log on all types of lands and leases in Alaska. Submit a well schematic diagram with each 10 -407 well completion report and 10 -404 well sundry report when the downhole well design is changed. Item la: Classification of Service wells: Gas Injection, Water Injection, Water - Alternating -Gas Injection, Salt Water Disposal, Water Supply for Injection, Observation, or Other. Multiple completion is defined as a well producing from more than one pool with production from each pool completely segregated. Each segregated pool is a completion. Item 4b: TPI (Top of Producing Interval). Item 8: The Kelly Bushing and Ground Level elevations in feet above mean sea level. Use same as reference for depth measurements given in other spaces on this form and in any attachments. Item 13: The API number reported to AOGCC must be 14 digits (ex: 50- 029 - 20123- 00 -00). Item 20: Report true vertical thickness of permafrost in Box 20. Provide MD and TVD for the top and base of permafrost in Box 28. Item 22: Attached supplemental records for this well should show the details of any multiple stage cementing and the location of the cementing tool. Item 23: If this well is completed for separate production from more than one interval (multiple completion), so state in item 1, and in item 23 show the producing intervals for only the interval reported in item 26. (Submit a separate form for each additional interval to be separately produced, showing the data pertinent to such interval). Item 26: Method of Operation: Flowing, Gas Lift, Rod Pump, Hydraulic Pump, Submersible, Water Injection, Gas Injection, Shut -in, or Other (explain). Item 27: Provide a listing of intervals cored and the corresponding formations, and a brief description in this box. Submit detailed description and analytical laboratory information required by 20 AAC 25.071. Item 29: Provide a listing of intervals tested and the corresponding formation, and a brief summary in this box. Submit detailed test and analytical laboratory information required by 20 AAC 25.071. Form 10 -407 Revised 2/2007 • Marathon Oil Company Alaska Asset Team Marathon P.O. Box 1949 Kenai, AK 99611 MARATHON Oil Company Telephone 907/283 -1371 Fax 907/283 -1350 July 11, 2008 Mr. Tom Maunder Alaska Oil & Gas Conservation Commission W 7 Ave JUG fit:; Anchorage, Alaska 99501 �1`:' Reference: 10 -407 Well Completion Report and Log Field: Kenai Gas Field Well: Kenai Beluga Unit 41 -18x Dear Mr. Maunder: Enclosed please find the 10 -407 Well Completion Report and Log for Kenai Gas Field well KBU 41 -18x. This well was completed into the Beluga and Upper Tyonek formations utilizing 13 Excape modules. Please call me at (907) 283 -1371 if you have any questions or require additional information. Sincerely, 1 / 1 <eAW" - d - 4 9" Kevin J. Skiba Engineering Technician Enclosures: 10 -407 Well Completion Report cc: Houston Well File Well Schematic Kenai Well File See Attachment List KJS KBU 41 -18x Kenai Gas Field Attachment List Logs • Formation Tester MD • Array Induction MD • Array Induction TVD • Photo Density Dual Spaced Neutron MD • Array Induction Vector Processing MD • Compensated Sonic MD • Compact Quad -Combo QuikLook MD 1:600 • Compact Quad -Combo QuikLook MD C -Thru • Hole Volume Caliper MD • Dual Radial Cement Bond Gamma Ray /CCL Compact Disc • Directional Survey • Wireline Log Data • Mud Log Data End of Well Report � STATE OF ALASKA • >� �6 A KA OIL AND GAS CONSERVATION CO SSION JUL 1 5 2008 WELL COMPLETION OR RECOMPLETION REPOFsAlsNU Oil Gas Plugged Abandoned Suspended 1b. Well Class: {) . ? • s s ❑ ❑ ❑ ❑ 20AAC25.105 20AAC25.110 Development 0 , d'•l o GINJ❑ WINJ ❑ WDSPL WAG ❑ Other El No. of Completions: 1 Service ❑ Stratigr =phic Test ❑ 2. Operator Name: 5. Date Comp., Susp., or 12. Permit to Drill #: 2 : - 026 Marathon Oil Company Aband.: 6/5/2008 Sundry #: 08 3. Address: PO Box 1949 6. Date Spudded: 13. API Number: Kenai Alaska, 99611 -1949 March 14, 2008 1 -133- 20575 -00 -00 4a. Location of Well (Governmental Section): 7. Date TD Reached: 14. Well Name and .tuber: Surface: 324' FNL, 585' FEL, Sec 18, T4N, R11W, S.M. March 27, 2008 Kenai B - luga Unit 41 -18x Top of Productive Horizon: 8. KB (ft above MSL): 88' 15. Field /Pool(s): 187' FSL, 1,043' FEL, Sec 7, T4N, R11W, S.M. Ground (ft MSL): 67' enai Gas Field / Total Depth: 9. Plug Back Depth(MD +TVD): Bel , a & Upper tyonek Pools 269' FSL, 1,072' FEL, Sec 7, T4N, R11W, S.M. 8,624' MD 8,535' TVD 4b. Location of Well (State Base Plane Coordinates, NAD 27): 10. Total Depth (MD + TVD): 16. Prope- Designation: Surface: x- 275,280.0 y- 2,356,284.9 Zone- 4 8,737' MD 8,648' TVD A - 028100 TPI: x- 274,833.0 y- 2,356,801.2 Zone- 4 11. SSSV Depth (MD + TVD): 17. La d Use Permit: Total Depth: x- 274,802.3 y- 2,356,885.7 Zone- 4 NA 18. Directional Survey: Yes IS No ❑ 19. Water Depth, if Offshore: 20 kness of Permafrost (TVD): (Submit electronic and printed information per 20 AAC 25.050) NA (ft MSL) NA 21. Logs Obtained (List all logs here and submit electronic and printed information per 20 AAC 25.071): See KBU 41 -18x Attachment List c ) 22. CASING, LINER AND CEMENTING RECORD WT. PER SETTING DEPTH MD SETTING DEPTH TVD AMOUNT CASING GRADE TOP BOTTOM TOP BOTTOM HOLE ' ZE EMENTING RECORD FT PULLED 20" 133 K -55 0' 139' 0' 139' Dr 13 -3/8" 68 L -80 0' 1,500' 0' 1,500' i 16 468 sks, Type 1 NA 9 -5/8" 40 L -80 0' 5,458' 0' 5,374' -1/4" I 281 sks, Class G NA 3 -1/2" 9.3 L -80 0' 8,660' 1' 8,571' + /2" 1,465 sks, Class G NA 23. Open to production or injection? Yes 0 No El If Yes, li .. 24. TUBING RECORD interval open (MD +TVD of Top & Bottom; Perforation Size and N , ., - : ,, SIZE ;, DEPTH SET (MD) PACKER SET (MD) 06 X -P Module MD TVD 44 / y 13 6,088'- 6,098' 6,000' 25. i ID, FRACTURE, CEMENT SQUEEZE, ETC. 12 6,262'- 6,272' 6,174' - 6,184' DEPT ' INTERVAL (MD) AMOUNT AND KIND OF MATERIAL USED 11 6,414'- 6,424' 6,326'- 6,336' . 6,088'- 6,098' 22,130 Ib of 20/40 sand & 3,163 Ib of flex sand 10 6,594'- 6,704' 6,506' -6,6 6,262'- 6,272' 16,511 Ib of 20/40 sand & 2,362 Ib of flex sand 9 & 8 6,820' - 6,890' 6,732' 02' 6,414'- 6,424' 1,214 Ib of 20/40 sand 6 7,020'- 7,039' 6,732'- 6,942' 6,594'- 6,704' 28,157 Ib of 20/40 sand 5 7,205'- 7,215' 7,117'- 7,127' 6,820'- 6,890' 35,339 Ib of 20/40 sand & 5,053 Ib of flex sand 4 & 3 7,446'- 7,506' 7,358'- 7,418' 7,020'- 7,039' 9,416 Ib of 20/40 sand & 1,347 Ib of flex sand 2 7,720'- 7,730' 7,632'- 7,642' 7,205'- 7,215' 26,279 Ib of 20/40 sand & 3,758 Ib of flex sand 7,446'- 7,506' 17,412 Ib of 20/40 sand & 2,492 Ib of flex sand 7,720'- 7,730' 10,586 Ib of 20/40 sand / flex sand 26. ' ' ODUCTION TEST Date First Production: 6/12/2008 Met' .d of Operation (Flowing, gas lift, etc.): Flowing Date of Test: Hours Tested: Production for •il -Bbl: Gas -MCF: Water -Bbl: Choke Size: Gas -Oil Ratio: 6/17/2008 24 Test Period 0 4,494 89 64/64 100% Gas Flow Tubing Casing Press: Calculated Oil -Bbl: Gas -MCF: Water -Bbl: Oil Gravity - API (corr): Press. 750 0 24 -Hour Ra - -•i 0 4,494 89 NA 27. CORE DATA Conven '.nal Core(s) Acquired? Yes ❑ No 0 Sidewall Cores Acquired? Yes ❑ No 0 If Yes to either question, list formations and intervals cored (MD +TVD of top and bottom of each), and summarize lithology and presence of oil, gas or water (submit separate sheets with this form, if needed). Submit detailed descriptions, core chips, photographs and laboratory analytical results per 20 AAC 25.II71 COMPLETION 6 � R1GIPd /4 ,.'`_ Form 10 -407 Revised 2/2 ONTINUED ON REVERSE • < 28. GEOLOGIC MARKERS (List all formations and encountered): 29. FORMATION TESTS NAME M TVD Well tested? 0 Yes If yes, list intervals and formations tested, briefly summarizing test results. Attach separate sheets to this form, if needed, and submit Permafrost - Top detailed test information per 20 AAC 25.071. Permafrost - Base M. Beluga 5,500 5,415 L. Beluga 6,236 6,148 MFT pressure testing showed pressure gradients from 0.36 psi/ft to 0.51 psi/ft. Top Tyonek 7,330 7,242 72 -8 Sd 7,355 7,267 MFT pressure testing showed pressure gradients from 0.24 psi/ft to 0.57 psitft. 73 -1 Sd 7,412 7,324 MFT pressure testing showed pressure gradients from 0.33 psi/ft to 0.59 psi/ft. 75 -8 Sd 7,654 7,566 MFT pressure testing showed pressure gradient of 0.40 psi/ft. 76 -7 Sd 7,765 7,677 78 -2 Sd 7,930 7,842 80 -8 Coal 8,159 8,071 84 -6 Sd 8,500 8,411 MFT pressure testing showed pressure gradient of 0.63 psi/ft. 84 -6 Coal 8,676 8,587 86 -2 Sd 8,713 8,624 S UI" ERSE® ED Formation at total depth:`" --�-�. 86 -2 Sand 8,740 8,651 30. List of Attachments: See KBU 41 - 18x Attachment List 31. I hereby certify that the foregoing is true and correct to the best of my knowledge. Contact: Kevin Skiba (907) 283 - 1371 Printed Name: evin J. Skiba • Title: Engineering Technician Signature: % ./2/ , $ j e Q , Phone: (907) 283 -1371 Date: July 11, 2008 6 9 INSTRUCTIONS General: This form is designed for submitting a complete and correct well completion report and log on all types of lands and leases in Alaska. Submit a well schematic diagram with each 10 -407 well completion report and 10 -404 well sundry report when the downhole well design is changed. Item 1 a: Classification of Service wells: Gas Injection, Water Injection, Water - Altemating -Gas Injection, Salt Water Disposal, Water Supply for / njection, Observation, or Other. Multiple completion is defined as a well producing from more than one pool with production from each pool completely segregated. Each segregated pool is a completion. Item 4b: TPI (Top of Producing Interval). Item 8: The Kelly Bushing and Ground Level elevations in feet above mean sea level. Use same as reference for depth measurements given in other spaces on this form and in any attachments. Item 13: The API number reported to AOGCC must be 14 digits (ex: 50 -029- 20123- 00 -00). Item 20: Report true vertical thickness of permafrost in Box 20. Provide MD and TVD for the top and base of permafrost in Box 28. Item 22: Attached supplemental records for this well should show the details of any multiple stage cementing and the location of the cementing tool. Item 23: If this well is completed for separate production from more than one interval (multiple completion), so state in item 1, and in item 23 show the producing intervals for only the interval reported in item 26. (Submit a separate form for each additional interval to be separately produced, showing the data pertinent to such interval). Item 26: Method of Operation: Flowing, Gas Lift, Rod Pump, Hydraulic Pump, Submersible, Water Injection, Gas Injection, Shut -in, or Other (explain). Item 27: Provide a listing of intervals cored and the corresponding formations, and a brief description in this box. Submit detailed description and analytical laboratory information required by 20 AAC 25.071. Item 29: Provide a listing of intervals tested and the corresponding formation, and a brief summary in this box. Submit detailed test and analytical laboratory information required by 20 AAC 25.071. Form 10 -407 Revised 2/2007 • • Permit #: 208 -0260 KBU 41-18x w API #: 50- 133205750000 Pad 41 -18 Property Des: A 028100 444'FNL X 539' FEL KB: 21' AGL (88' KB Elevation) X= 274939.6 Sec. 18, T4N, R11W, S.M. MARATHON Y= 2362144.95 ' Lat: 60° 26' 35.855" N I 1.1 Conductor Long: 151° 14' 47.610" W 20" K -55 133 ppf PE • Spud: 16:00 hrs 3/14/2008 Top Bottom TD Reached: 3/27/2008 MD 0' 139' TVD 0' 139' Surface Casing 13 -318" L -80 68 ppf BTC To_p Bottom MD 0' 1,500' TVD 0' 1,500' 9 - 5/8" Casing Shoe @ 5,458' MD ;',. 16" hole, Cmt w/ 468 sks (207 bbls) . ` i 12 ppg, Type 1 Cmt Top of Cement (est.) z 4,000' above 3.5" shoe 1 . Intermediate Casing L-80 40 @ 1,458' MD , II 9 -518" -1 Bottom BTC 3 MD 0' 5,458' 1 1 TVD 0' 5,374' ) Excape System Details 12 - 114" hole, Cmt w/ 281 sks (166 bbls) - Ceramic flapper valves belo • 10.5 ppg Class G cmt. each module as follows: Modules 1 3 & 4 connected w /flapper below 11 f Production Tubing Module 3. Modules 8 & 9 connected 3 -1/2" L - 80 9.3 ppf EUE w /flapper below Module 8 11 Tom Bottom - MD 0' 8,660' Flappers MD (RKB): DI TVD 0' 8,571' Module 13 - 6,111' . Module 12 - 6,286' 8rd with 6.25" OD control line protectors Module 11 - 6,437' ) to 8,660' RKB. 8 -1/2" hole, Cmt w/ 1,465 sks Module 10 - 6,618' 01 (302 bbls) 15.8 ppg Class G cmt. Module 9 - NA ( ) Module 8 - 6,909' I D� Excape System Details - 13 Excape modules placed Module 7 - 6,955' "! I - Greer. control line for bottom 3 modules Module 6 - 7,044' Di , - control line for modules 4 - 8 Module 5 - 7,229' ? - Red control line for modules 9 - 13 Module 4 - NA Di 1 1; - All modules w/ flappers above module 1 Module 3 - 7,519' ) are disappearing flapper versions. Module 2 - 7,737' DI Module 1 - NA ) MD (RKB): D Module 13 - 6,088 feet - 6,098 ft Module 12 - 6,262 feet - 6,272 ft Module 11 - 6,414 feet - 6,424 ft Module 10 - 6,594 feet - 6,704 ft , Module 9 - 6,820 feet - 6,830 ft Excape Float Shoe Module 8 - 6,880 feet - 6,890 ft @ 8,660' MD Module 7 - 6,932 feet - 6,942 ft Module 6 - 7,020 feet - 7,030 ft Module 5 - 7,205 feet - 7,215 ft TD PBTD Module 4 - 7,446 feet - 7,456 ft 8,737' MD 8,624' MD Module 3 - 7,496 feet - 7,506 ft 8,648' TVD 8,535' TVD Module 2 - 7,720 feet - 7,730 ft Module 1 - 8,570 feet - 8,580 ft Well Name & Number: KBU 41 -18X I Lease: Kenai Gas Field County or Parish: Kenai Peninsula Borough State /Prov:I Alaska Country:I USA Perforations (MD): Perf (TVD): Angle /Perfs: Angle @ KOP and Depth: BHP: BHT: 131 Completion Fluid: 6% KCL Dated Completed: 6/5/2008 Ground Level (MSL): 67' Prepared By. Kevin Skiba Last Revison Date: 4/17/2008 7/11/2008 9:01 AM • ... .. Operations Summary Report 'Well Name: KENAI BELUGA UNIT 41 -18X Qtr/QV Stock, Sec, Town, Range Field Name License No, State/Province Country 6018004N011W01 KENAI ALASKA USA Daily Operations Report Date: 311112006 Job Category: DRILLING 2411r Strmmary R/D Move GD -1 Accept rig 0000h1s, to KDU41 -185X 3 • s o "s° '�''', pa { ,. " ".> g yryy ` �.� �� r art'' ,dF .ffli3kRY.° itus. ,.a4rflpS,.Ctltle , ;/uiTvlly'Cods Scrrt78 00:00 06 :00 6.00 RURD_ `RIG_ AF PJSM; Rig down temp, shop and remove berms. Rig down water tines and load out. Rig down welding shop. Remove satitites and prep camp trailers. Remove and pull wires and water lines. Rig down gaitrcinics.Accept rig to KBU41 -18X 0000 hrs. Report Date: 3112/2008 Job Category: DRILLING 24' r Stmmary MIRU GD-1 0::00 06 :00 24.00 RURD RIG_ AF PJSMM;?Prep Company mans trailer, rig down Comm. Shut down rig generator, pull wires for camp units, rig down ext. lights. PJSM; Load out sub base, pits, and carrier. Mud boat, pump room, Load trailers.PJSM; Load out gen. house,- boiler house, water mod., shop and parts house. Finish rig down camp .bad out matting boards, clean up location. Set sub base, mud boat, pits and pump room. Spot carrier and fold down carrier skirt. Rise sub base, back in carrier and set jacks to level carrier, Install turn buckles. Pull pits together, raise handrails on pks pump room. Install exterior lights, plug in boiler house, pump room, set camp, work on derrick board, power plugs to welding shop. Unload trailers. Install trip tank. rig up pop "oifline. PJSMGrarne fuel tank, derrick house, gray iron, stairs, windwalls. PJSMRalse derrick, rig up service tines. crane in dog house, choke house, BOP connex and.fiowline,. Report Date: 311312008 Job Category: DRILLING 24 HrSummary MIRU GD -1, T ir D" 0 .,, &. r : x r kallua eGt; y >. 06:00 06:00 24.00 RURD,_ RIG_ AF PJSM ;Crane in back landing and windwalts. Pull wires to carrier, dog house. choke house. Fill 'water tanks on rig and camp. Rig up dresser sleeves, I prep. pump 1 and 2. Rig up drillers console and boot up PLC. Repair floor plate around mauseheole. Prep derrick to telescope. Install exterior lights on dog house. Unload trucks, P.JSM;lnstall pane line, set choke house exterior lights. PJSM; Scope up denick,set >:and adjust guy wiires,Set matting boards for oil products. Set hanson tank, pump #3, cuttings tank, MI cet. van, beaver slide, and catwalk. Move nech, shop and parts house. Rig up and plug in pump #3'. lnstatl steam around rig,tnstali cylinder covers. Install bows and cover an carrier, rig up brake linkage, choke hose, install torque tube and T bar. Rig lip stairs from BOP sonnexto rig floor and handrails, PJSM; Picking up torque tube and hang. Install turnbuckles and adjust. Repair brake lines on sub base. PJSM;fnspect tugger lines. Pick up top drive. Install gaitronics. Thaw out cellar and prep pump #3.. Report Date: 3114/2008 Job Category: ;DRILLING 4 Hr Summary R/U rig Cut 20"" conductor and N/U strater head. Pill 6 DP, N/U 21 i/4"" diverter w � z Troubiel , • ' Jc r�1 � „ .. d� � e��D„ot€.fh�1 � ° a code ��k ., a!tirdl CQtie „ � ”" y , Sret �°Bo� . = y , '.. .;. '��, �;, : F 06:00 12:00 6.00 - URD_ RIG= AF Weld base plate to 20 "" conductor. R/U service lines and kellyhose to top drive. Hang DP spinners and rig tongs. PJSM. Install bales and elevators, Install mud manifold on rig floor. install kill line hose. Start filling pits w/water. R/U cuttings tank. Offline: Rebuild swab and valves for mud pumps. Repair charging problem on #2 carrier motor. Troubleshoot problem with generators synching. 12:00 13 :00 1,00 SAFETY MTG_ AF Weekly safety meeting with both crews. 13:00 16:30 3.50 KURD_ RIG_ AF PJSM. Cont. filling pits w /water and building spud mud. R/U MI and Baker camp trailers. RN Geolograph floor splash gaurds, trip tank probe, panic line hose. and koomey tines to sub base. Fill rig and camp water. CIO weight "indicator glass. www.petoton.com Page 1/14 Report Printed: 7/17/2008 411 Operations Summary Report Well Name: KENAI BELUGA UNIT 41.18X Casing Flangek Elevation (ft) [Ground Bleuation (ft) ltaCasing Flange Distance (ft) KB-Ground Distance (ft) Spud Date Rfg Release Date 0.00 67.00 88.00 21.00 3/14/2008 ubZ 16:30 21:00 4.50 NUND BOPE AF RISK Final cut 20" conductor. Dress and bevel cut. weld draining nipple for conductor. Reset slip dies on starter head. Slip on 20" X 21 1/4" 2M Starter head w/2-4"" outlets.Test void to 500psi for 10min good test. 21:00 00:00 3.00 PULD DP AF PJSM. Set pipe racks. NU mouse hole. Load racks witri 5"" DP and FIVVDP. Drift and strap 5"" DP. 00:00 03:00 3.00 PULD DP AF PJSM. Cont, Pill drift and rack back 52 joints 5"" DP and 21 Mints 5"" HWDP and 6 114"" jars. 03:00 06:00 3.00 NUND ROPE AF N/U 21 1/4" diverter annular to diverter swot MU kill line to 2"" Veva on conductor. Precbange and pump up compensator on tap drive. Move in and diverter to starter head. Daily Operations Report Date: 3/15/2008 Job Category DRILLING 24 Hr Summary NAJ Diverter and diverter line. Test diverter. P10 16' bit and BHA. Clean 20"" conductor to 139'.Drill f/139-213' ,POOH to 30', NU MWD RJH,Work on EPOCH, Drill f1213'-528' fi lark. ' '111-v?, Vatmuu4rtistidvinvot b04110 06:00 12:00 6.00 NUND BOPE AF Cont N/ti 211/4"" Diverter. Ist/t) bell mipple. N/U kaife valve. MI.1C" diverter line and chain down to stands, R/U bleeder line, fill up tine and and trip tank tine. Install trip tank actuator. RIO koomey lines. Function annular and knife valve. Install cellar work platform grating. Offline: Repair rig generator synching problem. 12:00 13:00 1.00 NUND BOPE AF PJSM, Cont. N/U diverter line. 13:00 14:00 1.00 TEST BOPE AF Test diverter system and perform koonjey test. 14:00 15:00 1.00 INSPCT RIG_ AP Complete rig inspection. 15:00 16:00 t.cto PULD BHA AF PJSM. P/0 BHA. 16:00 18:00 2.00 EiRILL_ ROT_ AF Tag 28' Spud well 16:O0hrs 03/14/2008. Clean out 20'"' conductor to 139'. 18:00 21:30 3.50 DRILL ROT - AF Drill F1139=213' (Flowthe plugging up) 50 rpm pump= 400 psi -500 gpm -Up wt.=25K Dn virt.51‹ Rt wt=251( ART=1.0hrs 21:30 22:00 0.50 TRIP DP AF PJSM; POOH to 30' 22:00 00:00 2.00 PULD - BHA AF PJSM; Pick up MWD tool and EIFIA.RIH 0000 01:00 1.00 REPAIR EON) TA MSOT PJSM; Work on EPOCH monitors. 01:00 06:00 5.00 DRILL_ - ROT AF Drill F1213'-528' Up wt.=45K Dn wt.=451( Rt wt.r-45K Purnp=950 psi-600gpm Tq.=1-2K ART=3.1 Report Date: 3116/2008 Job Category DRILLING 24 Hr Summary Drill F/528' to 600'. Troubleshoot and reset PLC. DM F/600' to 1500', Circ. B/U, Wiper tdp.Service rig, Rill, Circ. hole, P0011 M Run csg. Aiv or„ ittrodi- e 04- *Of; 74'ff‘:..";',1„vilw 4 06:00 0700 1.00 DRILL ROT AF Dir dr survey F/528' to 600' ART=.511rs 07:00 08:00 1,00 REPAIR RIG_ TA MSPW Circ. w/purrip#3 an200gpm and rotate wil5RPM while troubleshoot and reset PLC 08;00 11:30 3.50 DRILL_ ROT_ IAF Dir drill and survey F/600' to 759'. 615GPM, 1300psi, 55RPM, 5/15K WOB, 1-2K TO, UP6OK,131460K, ROT60K ART=1.6hrs AST=.1hrs 11:30 18:00 6.50 DRILL ROT_ AF Dir drill and survey F/759' to 1198!. 64OGPM, 1400pst 57RPM, 5/8KWOB, 2-3KTQ, UPO6K, DN64K,ROT66K ART=3.2hrs.AST=1.2hrs 18:00 23:00 5.00 DRILL ROT AF pir. Drill and survey F/1198' to 1500` 650 gpm, 1600 Psi, 55 rpm, 5-8K WOB, 2-3 rt. tq., Up wt.=71K Dn. wi.„=68K Rt. wt.=70K ART=3.2hrs. 23:00 00:00 1.00 CIRC MUD_ AF Circ. two bottoms up.Hole clean for wiper trip. 00:00 01:30 1,50 TRIP W1PR AF Wiper trip[ f/ 1500' to 140') Hole slick no fluid losses. 01:30 02:00 0.50 SERVIC RIG - AP PJSM;Senrice rig and equip. 02:00 02:30 0.50 REPAIR RIG TA MSTD Remove acuator on top drive, change yoke on #2 dentson. 02;30 03:30 1.00 TRIP DP AF ' PJSIVI:RIH f/140' to 1500' Wash down f/1445' to 1500' No fill, Hole slick no fluid losses. 03:30 04:30 1.00 CIRC MUD - AF Circ. two bottoms up, clean hole, 04:30 06:00 1.50 TRIP DP AF PJSM; POOH to run 13 318 csg(SLM, no correction). Report Date: 3/1712008 Job Category: DRILLING 24 Hr Summary L/D BHA. C/O bales and elevators. R/O CSG tools. Run 13 3/8" CSG to 1484'. R/D CSG tools.M/U stb in tool, cmt 13 3/8 csg, ornt in place @ 2230 hrs.POOH w/ 5' DM, !VD divertor line & divertor. www.peloton.com Page 2/14 Report Printed: 7/17/2008 • Operations Summary Report Well Name: KENAI BELUGA UNIT 41-18X Casing Flange Elevation (ft) Ground Eton (ft) traCasing Flange Distance (ft) KB-Ground Distance (ft) Spud Date Rig Release Date 0.00 67.00 88.00 21.00 3/14/2008 3/31/2008 Op TiubW s .41 Camant 06:00 08:00 2.00 PULD BHA_ AF PJSM. L/D shock sub, DPS, X/0 sub, Pony monel collar, stabilizer and motor. Rack back 1 stand monel CSDP's. 08:00 11:00 3.00 RURD CSG_ AF PJSM. C/O to long bales and CSG elevators. R/U CSG tongs and tools_ 11:00 11:30 0.50 RUN CSG_ AF PJSM. P/U Joint91 set in rotary. P/U joint/12 and Bakedok and kW. Test floats OK. 11:30 1600 4.50 RUN CSG_ AF PJSM wicrew coming on. Run 13 3/8"" 68PPF L-80 BUTT CSG(total 36tointslto 1484. Float collar(14411, Land out CS O elevators on landing plate. 16:00 16:30 0.50 RURD CSG_ AF PJSM. Ft/D 13 3/0" CSG tools and long bates. R/U short bales and 5 DP elevators. 16:30 17:30 1.00 RURD RIG AF PJSM; Change out bales and elevators rig up rig tongs. • 17:30 18:30 1.00 'TRIP DP AF PJSM;Make up stab in tool and RIH, 18:30 20:00 1.50 CRC MUD AF Stab into and locate landinci collar at 1441 and circ, 5 bbis. min _ 20:00 23:00 3.00 PUMP CMT AF RISIvt;VV/ BJ cementers, RI9 up cmt. lines pump 40 bbls. sweep, pump 3 bbis. fresh water, test lines to 2000 psi. Mix and pump 12 ppg amt., (206.9) bbls, Type 1, 22% MPA-1, 2% Calcium chloride, 1% SMS, 0,3% CD-32, 0.05% static free, 1 ghs FP-6L. Displace with 20 bbis. Mud. Check floats OK, Got 34 bbls. cmt back to surface.173 bbts.Cmt.in place t 2230 hrs. 23:00 23:30 0.50 PUMP CMT AF POOH F/1441'-1370' pump dart and flush drill pipe - 23:30 00:30 1.00 PUMP CMT_ AF PJSM; Blow doWn top drive, break down crnt. hd. 0030 02:00 1.50 TRIP DP__ AF PJSM; POOH with 5"" drill pipe.Lay down pup, stab., stab in tool. 0200 . . 03:00 1.00 RURD_ CSG_ AF PJM; Remove 133/8 elevators remove base plate and lay down tools, false rotary table.Flush stack and clean floor. 03:00 0600 3.00 NUND BORE AF PJSM; Unchain divertor line, rig down divertor line, knife valve, pull mouse hole. Pump out and clean pits. Daily Operations Report Date: 3/1812008 Job Categoy: DRILLING 24 1-fr Surnmary Rough cut 13 3/8"" CSG and L/D. N/D diverter. Remove starter head from 20" 0011titiCtOr, Cut 20" conductor and L/D. Mix Floor° mudinstall Multi bowl, BOPE, Test BOP, P/U D/P. -1 " z.a.VA'A 1 9 11 ° 40, 4 CaiiVati**1104940,A. ' ° 06:00 09:00 3.00 NUND BOPE AF PJSM. Make rough cut on 13 3/8"" CSG and L/D cut joint. N/D Bell nipple. C/0 'towline ext. N/D diverter stack and toadout. 09:00 12:00 3.00 NUND BOPE 'AF Remove starter head from 20""condtictor. Cut 20" conductor and L/D. Start to mix Flopro mud. 12:00 14:00 2.00 NUND WLHD AF PJSM. Rough cut 13 3/8"" and dress cut. 14:00 1530 1.50 NUND BOPE AF Install 13 5/8"SM Multibowi slip-on wellhead. Test seals to 1500psi/lOrnin. 15:30 21:00 5.50 NUND BOPE AF N/U 36"" X 13 5/8"s5M spacer spool. N/U S,Rd,A 13 5/8"" 5M BOP. 21:00 22:00 1.00 NUND BOPE AF , PJSM; Rig up to test BOP. 22:00 00:00 2.00 TEST BOPE AF PJSM; Attempt to test BOP Upper and Lower lockdown screw packing leaked, try to tighten, call Vetco grey to service. Test gas alarms. 00:00 04:00 4.00 TEST BOPE AF Test bone & all related components f/ 250/3500 nsi for 10 mip. Test alarms LEL & H2S. Test flow 8, PVT alarms_ Perform accumulator drawdown test. Witness waived by Lou Gamaldi AOGCC. 04:00 106:00 2.00 PULD DP AF Run wear bushing. Pick up 5" Drill pipe and stand in derrick. Report Date: 3/19/2008 Job Category: DRILLING 24 lir Summar} P/U 5"" DP and reek back. Test 13 3/8"" CSG. P/U 12 1/4"" bit and BHA. RIH and tag cement 1411'. Drill Cement and shoe.Drill 20' O/H to 1520', FIT Test 139 EMW, Drill f/1520'-2242' a<41A Our -000 Activity Cdde; '47 Cmthen 06:00 11:30 5.50 PULD DP AF P/U 5"" DP(total 110 ints). 11:30 12:30 1.00 TEST CSG -- AF Test 13 3/8"" CSG to 1500psi/30min against blind rams OK. 12;30 14:30 2.00 PULD BHA AF P U 121/4"' bit and BHA. 14:30 15:30 1.00 TRIP BHA_ AF RII-1vv/HWDP and tag © 1411'. _ 15:30 17:30 2.00 DRILL CMT AF Drill cement, float collar, and shoe @ 1484' to 1500'. 1730 18 _ 00 050 DRILL ROT_ AF Dir Drill and survey f/1500' to 1520' ART=.3 AST=0 18:00 1900 1.00 CIRC MUD _ AF Circ. pump sweep, change over fluid to 9.1# Flow pro. 19:00 19:30 0.50ITEST LOT_ - AF FIT Test tO 13.09 ElvIW - - vvww.peloton.corn Page 3/14 Report Printed: 7/17/2008 • • • Operations Summary Report Weil Name: KENAI BELUGA UNIT 41 -18X Casing Flange Elevation (ft) Ground Elevation (ft) KB .Casing Flange Distance (ft) - KB- Ground Distance (It) Spud Date Rig Release Data 0,00 67.00 88.00 21.00 3/14/2008 4/5/2008 r z s Trouble' �) 17 "° d (fire) = QpsivOCfs <,, Argiatyuo as ? 4z Corlp orrmasnt ...: , -,Nt, Dry a; 19:30 00:00 4.50 DRILL_ ROT_ AF Dir Drill and survey f/1520- 1850 Up wt. =75K Dn wt. =73K Rt wt. 74K ART =2.3 Pump=315 stks. 1000 psi 635 gpm. 00:00 06:00 6.00 DRILL ROT_ AF Dir. Drill and survey #11850-2242` Up wt. =80KDn wt =80K Rt=wt. =80K ART =4.5 AST=0.3, Tq. =1-2K Max. gas= 15ufnitS, Pump =315 silts. 1100 psi, 635 gpm Daily Operations Report Date: 3120/2008 Job Category; DRILLING 24 Hr Summary Drill F/2242' to.3004', Ciro B/U, POOH f /3004'-1425!,Serv. rig, RIK, Drill f13004` -3319, a p e .e Op_ de ,S,Cdfe Sfet900 eacnOVir 06 :00 12:00 6.00 DRILL ROT AF Dir drill and survey F /2242' to 2626' ART2.8hts AST =13hrs 6500PM 1300PSI 55RPM TQ1 2K UP9OK DN9OK ROT90K 12 :00 19 :0 7.50 DRILL_ ROT_ AF Dir drill and survey F/2626' to 3 004' ART =3.3hrs AST =1.9hrs 650GPM 1325PS171RPM TQ1 -2K UP97K 1N93K ROT95K 19 :30 21 :00 1.50 CIRC MUD AF - Ciro. Bottoms :up for wiper trip,Check fallow, pump KCL dry job. 21 :00 23 :00 2.00 TRIP_ DP AF PJSM POOH f/3004' to 1425' No drag hole slick.No gains no losses.. 23 :00 00 :00 1.00 SERVIC RIG <. AF Service top drive, carrier, crown, cal, block height. 0000 01:00 1.00 TRIP_ DP AF PJSM RIH w15"" drill pipe to 2943' wash d* Wir o 3004' No drag, no gains no losses.. No fill on bottom 01:00 06 :00 5.00 DRILL_ ROT_, AF Dir. drill and survey F /3004' to 3319 Up wt: =100K Dn:tint. =100K Rtwt. =100K To .=2,400K Pump =306 stks.1150 psi, 600 gpmART =2,4hrs AST= 1.0hrs R!port Date: 3121/2008 Job Category: DRILLING 24 Hr Summary Drill F/3319' to 4833' I a : > a / Aaatua u : t�'+er,� . s ' "Atilt r �a �.gQfMt y�4d�xy� �.a, �;aa �'Comntent ywur 06:00 12:00 6,00 DRILL_ ROT AF Dir drill and survey F13319' to 3761' ART= 3:8hrs' AST =.3hrs 520gpm 115bpsi Up 112K Dn110K Rot108K T02-3K Flow check tat ll :00hrs static losses 3BPH 12 :00 18 :00 6.00 DRILL_ ROT AF Dir drill and survey F/3761' to 4070 ART =38hrs AST =.Shrs 500GPM 1000psi Up123K Dn116K Rotl21K TO 2 -3K Max Losses w /500GPM 15- 20BPH. Added CaCo2 and Mix 2 to active sysfarn. 18400 06:00 12.00 DRILL ROT_ AF Dir Drill and survey F /4070'to 4833'Up wt.135K Dn wt. =125K Rt.wt =130K Tq. =3-4K Max. gas =102 units 500 gprn, Controtinq losses with CaCn2 and mix 2 loseino 10 15bbl . hr.ART =7.7 AST =,4 Report Date: 3122/2008 Job Category: 'DRILLING 24 Hraummafl Ciro. shakers clean. Wiper trip to 2941'. RIH to 4833`. Drill F/4833' to 5475', Cite BA), POOH, Slip cut drilling Iine.Serv. rig and top drive .511 a, r )4 0us_Coife ;1 w sMtu s a ; e • 06:00 07 :30 1.50 CIRC_ MUD_ AF Circ. shakers clean(CBUX2) 5000PM 1050psi 70RPM. Mud losses 20BPH while circa 07:30 08:00 0.50 >POT_ PILL AF Spot 4OBBL LCM pill(75PPB CaCo3 Fine,Med,Coarse 6PPB Mix2) Ff4075' to 4400' in annulus. Flow check(static losses 5BPH) 08:00 10:00 2.00 TRIP_ DP_ AF PJSM, POOH to 2941'. Tight cQ 3975" otherwise hole in very good condition. Lost 3BBL/hr mud on trio. 10:00 11 :30 1.50 TRW' DP__ AF PJSM. RIH to 4833'. Wash last stand down (no fill).; 11:30 18 :00 6.50 DRILL ROT AF Dir drill and. survey F1 4833' to 5211' ART=4. hrs AST =.4hrs 500GPM 1375ps17ORPM.3 -5K TO Up145K Dn128K Rot 140K Losses +1- 10BPH. Trip gas 18units. 18:00 23:30 5,50 DRILL_ ROT_ AF Dir drill and survey F/5211' to 5475' ART =2.4 hrs. AST =1.1 hrs. Up wL =150K Dn wtr 137K Rt wt. =140K 75RPM TQ,3 -51< Losses +f- 10BPH 23:30 01 :00 1.50 CRC - MUD_ AF Ciro 1 1/2 bottoms up. Check well losses, static loss 5 BPH. 01:00 04:30 3.50 TRIP_ DP AF PJSM; POOH F15475' to 13 3/8 csg. shoe1500 Hole taking 6-8 BPH on trip out of hole.Hole slick no tight spots. 04:30 05:30 1.00 SLPCUT OLIN AF B PJSM :SIIp and cut drilling lirte,33' Check crown o matic. Adjust brakes. 05;30 06 :00 0.50 SERVIC A RIG' AF Serv, rig and top drive. Losses 26PH while at shoe. www.peloton.com Page 4/14 Report printed: 7117/2008 • • Operations Summary Report Well Name: KENAI BELUGA UNIT 41.18X Daily Operations Report Date: 3/2312008 Job Category DRILUNC 24 Hrrsttmmary RIH 5370', tag up wash to 5475', CBU2X , POOH,5474 - 5455', Wash 5470'-5470', POOHt/5253', RIH t,5475' Circ. sweep, POOH to 4000'spot LCM, Ck.losses at 1485' "21/4 BPH, POOH lay down BI-IA, C/O rams t/ 9 5/8 test 3fl - ;' .._ ibis) AO mss ' fi r. > w � file €ax�` -^x�c� � ��F. �.��•�- �:�CrOjTi1179n�� "Y, `r�,i ... End'�T1mB_ .,f5tir, „„ 3� � risCOd6 r 06:00 08:00 2.00 TRIP_ _ DP AF PJSM. RIH w /DP to 5370'. 08:00 09 :30 1.50 TRIP DP_ TA ND.Hi Tao tin at 5370'. Attempt to rotate off of possible ledoe. Could not rotate off. Circ. w/300gpm and slow rotary but could not pass bridge. Turned pumps up to 500gpm and 75rpm to work through bridge. Ran in hole to 75rom(possible stabililizer hanging up at 5370'). Wash to 5475'. 09 :30 10 :30 1.00 CIRC. MUD_ TA NDHI Circ. shakers clean(CRUX2) 5080pm il50psi 75rprn_ Dynamic Losses 5bph: Flow check 4bph static losses. 10 :30 11:30 1.00 TRIP DP TA NDHI PJSM:; POOH 5474' to 5455' 30K overpulf and had to circ. and rotate to free pipe. Cont POOH to 5339'. Pulled tight fit 5405' and 5370'. Work tight soots. RIH Tap (f t 5470'. 5' fill. 11:30 13:00 1.50 CIRC MUD_ TA NDHI Wash 5470' to 5475'. Circ. shakers clean(CBUX1).:Dynamic losses 5bph. 13 :00 14 :00 1.00 TRIP_ DP_ TA NDHI Floweheck static tosses 3BPH. POOH to 4171', Tight at 5274', 5253', 5223;5214', 5213', 5163', 5148'(25- 30K•overp,.tll). 14:00 14:30 0.50 TRIP, DP TA NDHI RIH. Wash last 10' to 5475'(no fill). 14:30 16 :30• 2.00 CIRC MUD_ TA NDl-1I Circ. 30bbl hi vis sweep sround(sweep indicated gauge hole), 500gprn 1150psi 70rpm dynamic losses SBPH: 16:30 18:30 2.00 TRIP DP_ AF Flowcheck static losses 4 BPH. POOH(tight @ 5253' 20K over, worked through tight spot, OK). Cont. POOH to 4000; SLM out of hole. 18:30 19 :00 0.50 CIRC MUD_ AF Spot 50bbl LCM pill w/ loppb G -Seal, 6ppb mb 2. S5ppb CaCo3 at 4000- 3600'. 19:00 21 :30 2.50 TRIP_ DP AF POOH ;f/4000'to1485' 21 :30 22 :00 0.50 FLOW CHEK AF Monitor well at shoe 1485' for losses, takin 21 g /4 BPH 22 :00 23 :00 1.00 TRIP DP_ AF Cont. to POOH f/1485' to 797' 23 :00 02 :30 3.50 TRIP BHA_ AF PJSMPOOH with 5' HWDP, and jars, lay down MWD and mud motor, break off bit and lay down. 02 :30 03:30 1.00 RUNPUL WBSH AF PJSM;: Pull wear bushing and change upper rams to " 5/8 csg. rams. 03:30 05 :00 1.50 TEST BOPE AF PJSM': ° . ". to test 9 5/8 cs! rams.Test rams 250 low 3500 .si hi. h.. 05 :00 06:00 1.00 RURD_ CSG AF PJSM; Pick up and make dummy run with 9:5/8 esp. hanger "19 up to run csg. Report Date: 3/24/2008 Job Category: DRILLING 24 Kr Summery RiU CSG .tools. Run 9 5 /8 "" CSC., Wash 5414` 5458', 22' of fill, Pump cmt.Cement in prate @0400 B/O landing j1. d. r to , r" E. t`s*Irar _.: TI , Ver is neg Opecocj . �, , .: , ::; 06 :00 09:30 3.50 KURD CSG_ AF PJSM, 0/0 to long bales and spider elevators. R/U CSG tools. 09 :30 12:00 2.50 RUN_ CSC_ AF PJSM; P/U 9 5/8"" shoe track Bake€iok all connections and RIH(two shoe joints), 12;00 14 :00 2.00 RUN CSG_ AF PJSM :w /crew coming on tower. Cont. to run 9 5/8"" CSG to 133/8 "' shoe @ 1500'. 14:00 14 :30 0.50 CIRC MUD_ `AF Circ. 1XCSG volume 1900PM 380psi. 14 :30 19:30 5.00 RUN_ CSG_ AF PJSM ;,'w /crew Cant running csg. f/1500'.5414' 19 :30 22:30 3.00 WASH, FILL AF Circ. and wash 011 from 5414' - 5458'. Wash 22' fill, Shoe at 5458' 22:30 23:00 0.50 RUN CSG_ AF Drain stack and verify csg. hanger in place. 23:00 00:45 1.75 PUMP CMT AF Circ. and mix cement.PJSM;w/ cementers 00:45 04 :00 3.25 PUMP_ GMT AF Pump30 bbls. of seatbond sweep at 10.0 ppg.using 28.64 bbls. water. Add 300 lbs.of Ultra Seal plus prior to pumping- Batch mix and pump 281 sks. of cement at 10.5 ppg. using 8468 bbls.fresh water. Cement is Class " "G " ", +15 %BA -00, 47 %LW -6, 1 %CD -32, 1%FL -52, 5%A-2, .05 %Static Free, lghs FP -6L. Weight is 10.5ppg, Yield is 3.314 cuft sack, water is12.658 gal. per sack, Total volume is16585 bbls. Thickening time 5:26 hrs. No gains No losses during displacement. Plug bumped at osculated. Bump with 500 psi over circ. pressure 1000 psi. Check floats and held.Cement in place at 0400 hrs. 04:00 06 :00 2.00 RUN_ ,CSG - AF Back out landing joint. install pack -off, with Vetco Grey serv. hand. www.peloton.com Page 5/14 Report Printed: 7/17/2008 • Operations Summary Report Well Name: KENAI BELUGA UNIT 41-18X Daily Operations Report Date: 312512008 Job Cat .o DRILLING 24 lir Summary Set 9 5/8 packoff , - Change rams, Set up rig floor, Test BOP, Install wear ring, P/U BHA, P/ti 5"" Drill pipe 96jts 2070. Test csg. 10 1500 psi 130min. j,,rerttf,$!1Ope, Stift:11614i/ nurthrstoi 3.Srane Cod a 10m- 06:00 07:30 1.5Q TEST__ INLHD AF Complete setting 95/8 hanger pack off. Tast 10 5000psi f 10min. C/O bails and elevators 07:30 09:00 1.50 SERVIC RIG AF Service rig, change oil on #1carrier motor. Lube and ex carrier drive lines, 09:00 10:00 1.00 RURD_ OTHR AF •Change out :9 5/8 casing rams to 2 718 X 5" rams RiD stabbing board. Set rm tongs and spinners 10:00 14:00 4.00 TEST_ BOPE AF Set test Plug. M/IJ test joint Test BOP and alt related conponantk. 25 0r3500PsI for Emin. Test gas alarms / aria -'VT vT alarms- reform Accumulator draw down test. All items passed with no failures. Witness waved by Bob Noble Aogcc. Called BLNI and Gave notice. 3/2312008. 14:00 14:30 0.50 RIJNPUL AF Set wear bushing. Blow down all test lines and top drive 14:30 17:30 3.00 FULD_ BHA AF PJSM: Strap and PM 8 112 hole section BHA. 6 3/4 1,1 AKO MIX motor, Stablizer Monet MWD X over 26 1/2"" Non Mag Drill collars X over HWDP and Jars. Pulse test MWD. 17:30 19:30 2.00 TRIP DP_ AF R1H with 5"" drill pipe to 5336' 19:30 23:30 4.00 WAITON CMT AF W.O.C. PJSM:Level carrier to help center derrick ever welLebangeent top drive hyd. activated mud saver valve 23:30 03:00 3.50 TRIP OP AF RISM;POOH and std. back w/ 25 stds. DP and Pill 96 jts. and 03:00 0400 1.00 TEST CSG_ AF PJSM: Test 95/8 csg.to 1500 psi for 30 min. Held, blow down lines 04:00 06:00 2.00 TRIP DP_ AF PJSIvt, Cont. pick up drill pipe to 5340'wash down to landing Report Date: 3/2612008 Job Category: DRILLING 24 Hi' Summary Tag F/C @5372' drill shoe track to 5458', Drill 20 new hole for FIT test, Circ. cond. mud, Perform FIT to 14A# EMW, Drill F15495- 6537' .- .4=4 %r-r 'tk‘!" 24 ' , Af'111%alf.niZti4 4 44:' 06:00 08:00 2.00 DRILL _ CMT AF Tag up on plugs/ Float collar at 5372' Drill Float collar and shoe track F- 53.72 - 545811:frill firm cement in shoe track.) Clean out to 5475' Drill new hole f- 5475 to 5495' For LOT. Up wt. 145k Dn. Wt 130K Rt. Wt, 129k. TO. 3450. 08:00 09:00 1.00 C1RC MUD AF Circulate and condition mud for LOT. test. at 5495' 09:00 09:30 0.50 TEST LOT AF NOM in93Mw.§53901vd 1440ps1 = 09:30 06:00 20.50 DRILL_ ROT_ AF ri.TFI 95 - 6537 wt.=165K Dn wt.=135K Rt wt=154K Tq. =6-10K Background gas=20 Units Max. gas=415 Units ART=11.2hrs. Ast=2.2hrs. Rats tst10 tt.t4l ©0530 hrs. Report Date: 312712008" Job Category: DRILLING 24 Summary Drill f/ 6537 arc hole clean. Short trip 10 stds, f/ 7042'-8052' 1 4111 r Ze 1, 44,14 „„4,441 4,'Ph - 4 gpo ps „ Acti , frod , 4stivim 1,cppe,pal • • •,,-,•;:,•„ Comment. 06:00 13:00 7.00 DRILL_ ROT AF Drill f/ 6537'- 7042' © 560gprn 1565psi 5-8k yob, tq. ph, wt. 170k sir) wt. 140k. Rt. wt. 155k Art= 4.5hr. Ast=0.P rate 95-130fph. IntatelaNrIntai a gas 450units Back ground gas 65units 13:00 14:00 1.00 CIRC,, MUD_ AF Circulate B/U clean up hole. InereaSe MilY8/81 8110 8e8Haertottreteres of cuttings over shakers, circulate until shakers cleaned up. Max gas 350units Avg gas 175units. 1200stks after B/U shakers cleaned up and gas dropped to 56units, 14:00 16:00 2,00 TRIP - 1/1/1PR AF Monitor Well poh( wiper hip)f 7042'- 6360' Hole slick,slight over pulls. No gain/ Loss. RIF! f- 6360'- 7042' wash f 6980'-7042' no fill. No gain loss. 16:00 00:00 8.00 DRILL_ - ROT_ AF Drill 8-1/2"" hole f/ 7042'-7610' © 560 gpm, 2100 psi, 5-15 klb wob, 70 rpm, 6-9 kft-lbs tq, p/u 178 klbs, silo 163 klbs, rot wt 165 klbs. ART: 5.3 hrs. AST: 0 hrs. Max gas = 346 units, avg bkgnd gas = 25 units, No corm gas. No gains or losses. Increased mud wt ft 9.8 to 10.0 ppg. Note: Trip gas = 62 units & 300% cuttings increase over shakers from bottoms up after short trip. 00:00 06:00 6.00 DRILL_ - ROT_ AF PJSM: Drill 8-1/2"" hole f/ 7610'- 8052' © 550 gprn, 2100 psi, 5-15 klb wob, 70 rpm, 6-8 kft-tbs tq, p/u 190 klbs, sio 160 klbs, rat wt 175 klbs. ART: 4.5 hrs. AST: 0 hrs. Max gas = 302 units, avg bkgnd gas = 65 units, no corm gas. Na gains or tosses. lore n ett it1t1k0 to 10i Ws. www.peloton.corn Page 6/14 Report Printed: 7/17/2008 • • Operations Summary Report Well Name: KENAi BELUGA UNIT 41 -18X Daily Operations Report Date: 3/28/2008 Job Category_ DRILLING 24 Hr Summary Drilled f/ 8052' -8740 Make 15 std short trip Raise mud wt to 12.0 ppg. Wiper trip `� x, Otis Trouble a � 7 t4fl �' . if r< ' k -, ' <r _ .gfait m8 Eird ..*<L1ur tbmi COP$ C., . ,Ad vlty status,,:. C`,elB - . r � 3; i " -'„' e •;''� .� >, CDITIM18tltz ?`' 06:00 08 :00 2.00 DRILL_ ROT AF Drill V 8052'- 8115' Lost pulse from MWD tool. Troubleshoot no success. ART: Oh hrs. AST: 0 hrs. 08:00 10:30 2.50 CRC _ MUD_ TA MDMW Circulate and increase mud welg• 110 ; 6 To trip out of hole for MWD failure. After determining that MW! has a memory to record Surveys . Will drill ahead to TO 10:30 18:00 7.50 ORILL . ROT_ AF PJSM : ,Drill f/ 8115' -8512' © 560 gpm, 2200 psi, 6-15 kib wob, 70 rpm, 7-10 kft-lbs tq, p/u 198 .lobs, s/o 168 klbs, rot wt '180 klbs, ARI': 5.0 hrs, AST 0 hrs. Max. as = 461 units. , avg bkgnd gas = 45 units. No gains or losses. nixed wl f! 11.6 to 11.2 ppg. Note: Connection gas increasing 6' 46 units to 145 units at 8294' MD 8206' TVD. 18:00 23 :00 5.00 DRILL ROT_ AF Drill fl 8512' - 8740' @ 500 gpm, 2150 psi, 5-15 kilo wdb, 70 rptn, 7-11 kft4bs tq, ptu 200 li16- :: elo t68 lobs, rot wt 185 lobs, ART: 3.9 hrs, AST 0 hrs. Max gas = 407 units,: avg bkgnd gas = 45 units, corn gas =130 units. No gains or losses. Reached T.D. t 23 :00 hrs @ 8740' as per MOC geology dept., 23 :00 00:30 1.50 CIRC_ MUD_ AF Ciro ficile clean white inoreaseentetwt p 1142 1f 1 . . 00:30 01 :30 1.00 TRIP_ WIPR AF PJSM: Make 15 std short trip f/ 8740'- 7800'. Work tight spot .® 7870' vv/ 30 klbs max overpull. No gains or losses. Hole took proper fluid fill.: 01:30 02 :15 0.75' TRIP WIPR AF RIH f/ 7800'- 8684'. Wash last std to bottom f/ 8684'- 8740'. 6' fill on bottom. Hole stick w/ running in. No gains or losses. Perfect fluid displacement. 02:15 05 :30 3.25 .:CIRC_ MUD_ AF - Ciro bottoms u s 199: A r IN .. ` « _ _ ®nr td e ' rE" . 'i ngs increase over s a ters on .. ' orris up. a•' om or total of 1hr45 min. 05 :30 06:00 0.50 TRIP WIPR AF PJSM: Monitor well (static). Pump dry job & proceed to POOH for wiper trip to 9 -518" csg shoe, Report Date: 3/29/2008 Job Category: DRILLING 24 Hr Summary Wiper trip 6' 8740' - 5403'. Senrtce rig. Rill 1/ 5403' - 8740', Circulate hole clean. POOH. L/D BHA, Lubricate rig. R/U to run wireline togs. � s r � �� osti mei* r. Atom 14 :00 8.00 TRIP WIPR AF Continue POH ( wiper trip) f/ 8740' 5403' Wash and back room out coal ledges at 7711', 7681' ,7665' "7582',7560',7481;7410',; 7241",7206',7016' and 6986'. Clean up various tight hole due to clays f -8900'- 5500'. No Gain / kiss. Correct hole fill. 14 :00` 14:30 0.50 SERVIC' RIG AF Service moiler, draworks top drive crown and swivel': 14:30 16 :30 2.00 _ WIPR AF RIH f/5403`- 8740" wash from 8780' to 8740' No gain/loss Hole slick no bridges or ledges. 10' of fill on bottom. 1 :30 18 :00 1.50 CIRC_ MUD_ AF - Circulate bottoms up (trip gas = 221 units max). Not much increase in cuttings over shakers. Cont' circulating until shakers clean. 18:00 00:00 6.00 TRIP_ _ AF PJSM: Monitor well (static). Pump dry job. POOH f/ 7840 . -794` w/ 5 "" drill pipe (SLM). No tight spots. Hole slick. No gains or losses. Hole took proper fluid fill. No depth correction on SLM. 00:00 02:00 2.00 PULD_ BHA AF PJSM: Rack back 5"" hwdp & jars L/D crossover sub, (3) non -mag drill collars, MWD, pony collar, stabilizer, mud motor & bit. 02:00 03:00 1.00 SERVIC RiG_ AF PJSM: Clear & clean rig floor. Lubricate rig. 03:00 05 :00 2.00 RURD - ELEC AF PJSM w/ Weatherford: R!U to run wireline logging tools. 05 :00 06 :00 1.00 LOG OH AF PJSM w/ Weatherford: RIH w/ quad -combo logging tools on wireline. Report Date: 3/3012008 Job Category: DRILLING 24 HrSummary - -- Run quad -combo logging tools on wireline. M/U & RIH w/ 5'"' mulehshoe assy on driilpipe. Slip & cut 148' drilling line. RIH. CBU. Rig up & run RFT's on wiretine. POOH w/ FRT tool on a -line . a - *> f.'Tmubta Start Tine Errd .; Dui (hr$) Ops Coda . _ „ Gone A Sixtus ! Cade - �' :;Comment _u. _ 06:00 16 :00 10.00 LOG OH AF Continue running Weatherford wireline service quad combo log in toots. able to reach 8735" wlm. Run Quad- combo loggs from 8735' to open hole) Log inside 9 5/8 wig. f/ 5458 to 3000'. POH with tools Unload source, lay down logging tools. Rig down a -line. Note monitor well with trip tank. 5bbt loss in 14hrs 16:00 - 118:30 2.59 TRIP - -- DPP AF - M/U 5 "" mule shoe and rih w/ 5 "' drillpipe to 5403' Na Gain/ loss www.peloton.com Page 7/14 Report Printed: 7/17/2008 • • _ • Operations Summary Report Well Name: KENAI BELUGA UNIT 41-18X Opa Trraibls w start Ytme Ei d Time :, nur ra �� 3 Capa< boat, „,. , /1cNvtgrCade statue - code . _ Ommfint = -_ _ r 18 :30 19 :30 1.00 CUT WIRE AF Slip and cut 148' drilling line. Check & reset crown- o-matic. 19:30 21:30 2,00 TRIP_ DP_ AF Continue rih w/ 5' "' Driilpipe to 8725-' No gain/ loss. No bridges or tight spots, 21 :30 23 :00 1.50 CRC MUD_ AF Ciro © 8725' for 10 minutes. Pick up to 8600' & con't tiro bottoms up. Max gas =1004- units. Can't circ out large chunks Of coal & until shakers clean up. Pick up & park drill pipe {§ 8521'. Blow down top drive & mud lines. 23 :00 06 :00 7.00 LOG_ OH TA MDLG PJSM w/ Weatherford wireline crew: R : wit# drillpipe. Made mp181 =_ ''s • T tools on e-line to check to Daily Operations R .cart Date: 3131/2008 Job Cate!o DRILLING 24 HrSummary RIH w% RFT tool on wireline & log pressure pts, POOH w/ a -line & repair tool. Con't logging w/ RFT tool. POOH w/ a -line. Repair RFT tool. RiH, Con't RFT Logs. P001-I w/ wireline & L/D RFT tool. RIH w/ 5 "" dp to 8725'. CBU. POOH w 5V' DP to 6001'. .. a t a 4 '✓�✓ as 9 °`ToiWef y ;-: - = ra7r�,4 �. .�.,.1aur �Im:: t ®a�Co_da.., 7 7 + ,4'1 id � -;�;4 _ � einrrt •� � ti � ,s 06:00 06:30 0,50 LOG.__ OH AF ® Continue poh with rft tools on a -line. 0::30 12 :30 6.00 LOG 011 AF Pull tit tool up and clean tool and replace Ing, Lay down tool and move driilpipe:30k overpull to free pipe.. - R/U e-line tools and rih and run Pressure tests at 8620,8631,8629,8628,8623,8418,7800,f* * .t g Down E- Line Toots to move drillpipe o or set o I pressure points No gain floss. 12:30 14:00 1.50 TRIP_ DP. AF Monitor well, poh to 7134' and park drillpipe. Pipe pulled free. No gain/loss 14:00 21 :30 7,50 LOG _ OH AF Park drillpipe at 7134', rig up a -fiixe and rft tools and rih through drilipipe. Run RFT at 7709% 7510, 7503', 7449', 7454', 7382', 7369'. Tool quit working. Hanging up inside drill pipe. Could pull up. Could not go "down. POOH w/ wireline to check RFT tool. Found part of caliper arm missing.. 21:30 22:30 1.00 LOG 011 TA MDLG Repair damaged RFT tool. Circulate briefly as precaution to clear out any possible obstruction In drill pipe. No abnormally high pressure noticed. 22:30 03:00 4.50 LOG_ OH_ TA MDLG RIH vv/ ° F tool on wiretine to 7134'. Log RFT pick pts @ 7207' & 7195'. Note: Hit obstruction 7120' while running Inside drill pipe. Immediately broke through. Had no problems getting last 2 pis of second set. POOH w/ RFT tool on wireline. Lay down logging tools. No additional damage to tool observed. Note: Obtained 21 total pressure points of 40 attempts overall 03.00 04:00 1.00 TRIP DP AF RIH w/ 5 "" drill pipe f/ 7134 " - 8725`. No gains or losses. Correct ftuicf displacement. 04:00 05:00 1.00 CIRC_ MUD_ AF Circulate bottoms up. Max gas =1205 units. Mud wt A Ota of hole. 05 :00 06.00 1.00 TRIP_ DP_ AF Monitor well (static). Pump dry job: POOH w/ 5" drill pipe to 6001' r fast set of RFT logs. Report Date: 411/2008 Job Category: COMPLETION 24 Hr Summary Make up 8 -1/2 "" cleanout assembly w/ MIND & Rlt. %'; /��.c�Qp .,� rig ' , t ; v �a..... y 5. Trou Pirtle t fTlme �, f ttr {I1taI ch ,taafe ..a . 1 r rtiy code Stowe v ��s F a CC,ttuttent . t�. 04:00 05;00 1.00 TRIP_ BHA_ AF PJSM: Make up 8 -1/2 "" cleanout assembly. with MWD for surveys. Pulse test MWD (ok). 05 :00 06:00 1.00 TRIP_ _ DP_ AF RIH w/ 5 "" drill pipe; Re .art Date: 4/1/2008 Job Cate. o • DRILLING 24 Hr summary POOH w/ 5 "" drill pipe & park © 6001'. RIH w/ RFT logs. Work stuck logging tool. Work stuck drill pipe free. POOH w /wireline tool & L/D/ same. POOH w/ 5'" drill pipe. Move to completion phase @ 04 :00 firs on 4/1/2008. r' A ' � . s y Ops ' Tfotible : , �� ,✓' End StartTlma , , nd Thne Ouritrr$)�._; _ Opa , COd ,,.,-ActfvltyCode', €. Stag': Codas.... .�, :< ., b,, -COmmlio u . , .ry 06 :00 07 :15 1.25 TRIP_ DP AF Continue to poh with 5 "" drill pipe to park drilipipe at 6001' for final rft test points. No gain /loss. pipe pulled free no tight spots. Note Called BLM Tim Lawlor and gave notice of casing and cement operations. KBU 41 -18X 1200hrs 3- 31- 2008. 07:15 12 :00 4,75' LOG OH_ -T AF Rig up wistools for RFT pressure loggs. RIH with rft 'tools on a -line inside drilipipe. Wireline tool stuck. 12 :00 14 :00 . 2.00 LOG OH TA NDSW - Attempt to pull tool up to new pressure point. Tool stuck at 6587' Work and pull up to 75% of line { 5200 pounds ) no movement. Hold 4750 tension on line and wait on wireline fishing tools. www.peloton,corn Page 8/14 Report Printed: 7 /1 712 00 8 • Operations Summary Report Well Name: KENAI BELUGA UNIT 41-18X '4 'A- ' 4 44, -9•RZ' 7 „:_ staitmMi; E1ta4 ttoiirlh*e wtkpee,ceee :; e §tatuB 4 14:00 00:00 10.00 WORK_ ELEC TA NDSW PJSM: Rig tip /4 t.tt wireline. Attempt to strip in hole over wireline w/ drill pipe. No go, drill pipe stuck � 6001'. Install wireline circulating sub. Circulate § 2.8 bpi While put 2 rounds torque in pipe. Pipe frees up 20:15 hrs. Up wt 165 Mb% down wt 125 klbs, Con't work on stuck wireline tool. Strip in hole 2-1/2 stands overwireline while maintaining maximum 2,500 lbs tension on wirellne. Wireline tool bmoo frees up 21 . Splice wireline & feed to spool. Pull out of oo inside drill pipe t/ 22:45 hrs. Proceed to POOH w/ wireline tool w/o any further problems. Lay clown logging tools & rig down wireline. 00:00 04:00 4.00 TRIP DP AF RISK POOH w/ 5"" drill pipe f/ 6001'-0'. Monitor well (static). No gains or losses. Move to completion phase § 04:00 hrs. Daily Operations Report Date: 412/2908 Job Category: COMPLETION 241* Summary RIH VV/MWD/cleariout assy. Survey F/8000' to 8700'. Circ. clean. POOH to 7175' pulling tight w/diff sticking. RIH to 8470' and circ. and add 2%lubteX. POOH to shoe. L/D 5"" dp ft 5848"-126'. L/D 81-IA. RCN w/ 5'"' drill pipe to 3470'. POOH w/ L/D 5"" de. .?? -• 44740'4 " ; 41 7 :`,;• fok:.-, geief,!- ' ICOde ' 3 S 06:00 08:30 2.50 TRIP DP_ AF Cont. RIH w/ 8 1/2Clean out / MIND assy. 08:30 0930 1.00 TRIP_ DP AF Cont. RIH and survey § 8002%8127', 8254', 8380', 8673', 8695'. 09:30 10:30 1.00 TRIP DP_ AF Cont. RIH Tagged bride 08660% Slacked off and passed bridge. Tagged bridge § 8704 and washed fill to6737'. 10:30 12:00 1.5Q TRIP DP AF CBU 7ORPM 5000PM 2050psi Max gas 39Ounits. CBU 2ORPM 500GPM 2050psi. LaMe_gyantity of coal Artrngc shaker on first B/U cleaned up on second Bill 12:00 14:30 2.50 TRIP DP AF PJSM. Flow check and pump dry job. Rack back first stand. POOH attempt to 1/13 DP first joints tight q...•.0 8630', 8595', 8593', 8340 30-45K over). Start pulling stands got stuck at connection @ 8291' (pulled 45K over) and had to P/IJ DP single to get free. Cont. pulling OP with 20-25K overpull at connections(looks like differential sticking) Cont. to pull to 7175' differential sticking did improve. 14:30 15:00 J 0,50 TRIP DP AF I IRIH and tag bridge t) 8727'. 15:00 17:30 2.50 CIRC MUD_ AF Tag bridge 8727' to wash 872r to 673r. Reduce active system by shipping mud to hansen tank. Add 2% tubtex to active system. Circ. 500GPM 2050psi 25RPM CBUX2 shakers clean. Torque before 6300ft-lb After 3200ft-lb. 17:30 2000 2.50 TRIP_ DP_ AF Flowcheck and pump dry job. POOH pulling off slips w/10-15k over. Pulled 15K over t 8520', pulled 25k over t 7800'. Worked through both spots with no problem, Con't POOH w/ 5"" drill pipe to 9-5/6" csg shoe. 20:00 02:00 6.00 PULD DP_ AF PJSM: POOH w/ laying down 5"" drill pipe singles f/ 5458'-126'. 02:00 03:00 1.00 FULD_ BHA_ ,AP PJSM: Lay down (2) crossover subs, IVIVVD, (3) non-mag drill collars, bit sub & 03:00 05:00 2.00 TRIP DP AF PJSM: RIH w/ 5" drill pipe from denick to 3470'. 05:00 06:00 1.00 PULD DP AF { PJSM: POOH w/ laying down 5"" drill pipe Singles f/ 3470'-2830'. Report Date: 413/2008 Job Category: COMPLETION 24 Hr Summary L/D 5" DP. C/O bales and elevators. Adjust derrick level. CIO bales. R/U CSG tools. Pick up & run 156 Its 3-1/2"" csg to 5540'. • -Trqubla Start Mile 'End , 44DUrOts), Codei Wou4 4ACii0P - ,. - 06:00 08:00 2.00 PULD DP AF Cont. POOH and L/D 5"" DP. Losses .58PH while POOH. 08:00 09:00 1,00 RUNPUL WBSH AF Pull wear bushing. Clean and clear rig floor. 09:00 10:00 1.00 RURD_ CSG_ AF PJSM. C/0 bales and elevators. Adjust derrick level. 10:00 12:00 2.00 RURD CSG_ AF C/0 bales elevators. 12:00 12:30 0.50 RURD_ CSG_ AF PJSM prior to running escape. 12:30 14:00 1.50 RURD CSG _ AF R/U Expro control line sheaves on crane boom. R/U CSG tongs. 14:00 06:00 16,00 RUN - CSG_ AF P/U & M/U 3-1/2"" float shoe, shoe track & float collar, Check floats. Con't RIH w/ 3-1/2"" 9.3 .6 of, L-80, mod EUE cs.. Ran total of 156 ts w/ 13 Excape modules, 3 contra Ines ; 1 sacri ca ine. rea arc r & fill one csg volume § 5458'. No gains or losses. Correct displacement. Current depth § 06:00 hrs is 5540'. _ - www.peloton.com Page 9/14 Report Printed: 7/17/2008 Operations Summary Report eHI Name: KENAI BELUGA UNIT 41 -18X Daily Operations _port Date: 4/412008 Job Category: COMPLETION 24 Hr Summary Run CSG. Circ. CSG. Run correlation log. Space out. Cement 3.1/2"" csg in place © 22:08 hrs, W.O.C. Flush mud lines. Prep stack to pick up & set 3 -1/2"" csg slips: • R, ` � * z - Ops Trautlle- a �y�x y I a , .cam` ,�" Startlime Eriil7isis . 129Z ] oisa y vl Cyode Steen c e i d' a i � .... ;,F� .. -.., �� ., .,,� �� - .� _,. �t� � ... . �ga� ,� 06:00 11:00 I 5.00 RUN CSG AF Run 3.5"" 9.3ppf L-80 Excape completion to 8657'. 255 total jts. 11 :00 14:00 3.00 RURD__ CSG_ AF R/U circulating head. Circ. and reciprocate CSG 200ggpm 900psi max gas 105 units. PJSM for EL operations. 14:00 17 :30 3.50 LOG_" CSC_ AF Rill and run G13 CCL correlation tog. Evaluate corrolation log: Install 4' pup & make +2.72' depth adjustment. Float shoe set @ 8660.11'. Float collar set @ 8623,86'. Reciprocating pipe w/ circulating. 17:30 22 :30 5.00 PUMP CMT_ AF PJSM' w/ BJ ant services: Switch to cmt line, pump ahead 5 bbls water & test cmtiines to 3000 pal (OK). Batch mix & pump 40 bbl Sealbond sweep (4/ 13.5 ppg using 32.86 bbls water. Line up, mix & pump 1465 sks of 15.8 ppg class ""G " 'cmtwl 1.2% BA -56, 0.5% EC -1, 0.3% C042, 065% Static Free, lghs FP- 8L,1.159= cuJt.lsk yield, 4.908 gal water /sk: 4 :29 tin; thickening time,: 302.4 bbl slurry, 171.10 bbls retx water. Close valve to head, open wash up valve & pump 5 bbls water. Close wash up valve & open to head. Drop plug & kick out wl 5 buts water. Displace cmt w# 70.3 bbls KCL water. Bump plug w/ 1000 psi over displacementy'preesure of 2600 l psi. Bleed off & check' floats. "him over to rig. No fluid tosses to fodnatien C.I.P. @ 22:06 hrs., 22:30 06:00 7.50 WAITON CMI '_ AF PJSM: WOC. R/D cmt equipment. Flush & blow down mud pumps, choke, manifold, poorboy degasser, kill, filiup & trip tank lines. Clear& dean rig floor. Pull picture nipple to rig floor. Prep stack to pick up & set csg slips. All while cleaning pits. Report Date: 4/5 #2008 Job Category: COMPLETION 24 HrSummarp N/D BOP. Lift BOP, set slips. Cut CSG and dress. Set packoff and test N/U production tree & test. Set BPV. Rig down GD -1 & prep to move. fs trar ' 4 r 4 x - -ate Trouble utartTlma -. i,Eri T net dt ®. - .. B q Aiti ) (6 1 . !�S ICoda 06.00 07:00 1.00 NUND ROPE AF Remove drip pan, N/D choke and kill Hues. MD BOP. Cont. clean pits. 7 07:00 10.00 3.00 NUND TREE AF PJSM. P #U stack and cut Centro] line and thread though slips: Set 13 5/8"" X 3 1/2"" slips wt75K. Cut 3.5" CSG and L/D cut joint. Dress 31/2'" stub. Move 130P stack out of sub and set on stand. N/D 13 5/8 "" 5m X 36"" spacer spool and move out of sub. Cont. clean pits. 10 :00 12:00 2.00 TEST _ WLHD AF PJSM. install 135/8"" X31/2 "" 5M packoff and test to 5000p si110min. Dress control lines. Cont. dean pits. 12:00 13;00 1.00 NUND TREE AF PJSM. N/U 13 5 /8 "" 5M X 31/16 "" 10,000M X -mas tree. 13.00 15:00 2,000 TEST_ TREE AF Test . tree void to 5000psillOmin. Test tree against TWO 5000psI/10min'and 10,000psi/10min. Cont. clean pits, 15:00 15 :30 0.50 RUNPUL VLVE AF Pull TWC and set BPV. 15:30 00 :00 8.50 BURR_ RIG_ AF PJSM'. R/D & L/D top drive & torque tube. R/D & move out M4 van. Piekte -3 mud pumps, Mo out #3 pump house. Pull fluid from poorboy degasser. Pull dresser sleeves between pump room & pits. Shut in boiler & blow down steam line. Pull back tarps on carrier. Check tjre pressure on carrier, pump house & pit room. Blow down brake water & pump anti - freeze into system. 00:00 06 :00 6.00 RURD_ RIG_ AF PJSM: R/D driller 's console, dog house & choke house. "Foil elecrical wires. Clean out sub Legs. Lower beaver slide. PJSM: Prep & scope down mast. Blow down waterlines. Hang service loop, kelly hose & guy wires. Prep to lay over derrick over onto carrier. Remove lights from top of dog house & choke house. Remove trip tank. Clear mats away from front of pits & pump rooms. Con't preping rig to move. Report Date: 4/6/2008 Job Category: COMPLETION -- . -., -- 24 Hr Summary Finish rigging down GD -1 & preping to move.. Rig released to KBU 42 -7rd @ 1 &D0 hrs on 4/5/08 @ 18 :00 hrs. r rtr ma ' ,Emil ° v ° Dps Trouble 1i Time -Do 1hr8L_ Ar ops.Code.. Antall.Cede Status-:' code ' , .,.. Comment , , 06 :00 08 :00 2.00, KURD_ RIG_ AF R/D rig prep for crane work. 08 :00 12:00 4.00 RURD_ RIG_ AF PJSM w /crane operator. Crane down windwaHs, stairs, BOP convex, choke w house and dog house. www.peloton.com Page 10/14 Report Printed: 7/17/2008 111/ • Operations Surnrrtary Report Well Name: KENAI BELUGA UNIT 41-18X - j- 4'014-* Off • 'big " -e stirrnme ,,,opsacde ActMty 60616 "-::, 12:00 14:30 2,50 RURD RIG_ AF PJSM wkrane operator. Crane down choke houte and dog house. Pull wires from bulkhead back to top of pump,house. Complete pulling all wire. Pump down boiler & condensate tank. Drain feed tanks, 14:30 18:00 3.50 RURD,_ RIG_ AF PJSM: Lay over derrick. Prep & move carrier out. Rernove mud boat, Attach sub base 5th wheel. Pull sub base from over wellhead. Rig released to }BU 42-7rd Oil 18:00 hrs. on 4/5/08. Daily Operations Report Date: 6/612008 Job Categor3r. COMPLETION 24 fir Summary Perforate Module 2 vw,i0 , %LA.*, A'q4, '0T iim ' f'OP )%•sactAliC **0* ' 08:00 08:30 0.50 SAFETY MTG AF Safety meeting 08:30 09:30 1.00 RURD OTHR AF Rig up Expro Perforating 0930 10:00 0.50 .PERF CSG AF Perforate Module 2 10:00 10:30 0.50 RURD OTHR AF 10:30 11:00 0.50 SECURE WELL AF Report Date 6/1/2008 Job Category: COMPLETION 241* Summary fracture stimulate 12 modules, 10 intervals lrff,tgfm t - ,49.P111 1 7YoubleNt. ' ..t,t4 1,‘" .** moo M 4/fActottoort*tsatiC tri4, x,:5 07:00 07:30 0.50 SAFETY MTG AF PJSM - Muster area, high pressure, active gas production pad - red lights, blue lights, sirens, buddy rule, • three second stile, sign in , sign out, gate guard etc 07:30 08:00 0.50 TEST TBG AF Pressure - test Expro Well Test tlewitrteS1 4000# -test good 08:00 09:18 1.30 PUMP FRAC - CS Formation tight, pressured up - bled down three times. breakdown pressure 56004- 3rd cycle 09:18 09:48 0.50 PUMP !FRAC AF pump rate 15.5 bpm, PP-4580# 09:48 10:33 0.75 FLOW - BACK CS flow back module 2 interval- measured volume 60 BBL sand and water , 10:33 11:03 0.50 PUMP WTR CS pump back into module 2. flowback was 60 138L - 6900 feet of casing. Attempting to flush any remaining sand bad( into module g at 7720 to 7730 feet. Rate 7.1 BPM PUMP PRESSURE 4635# Volume 61 BBL gelled KCL water. _ 11:03 11:18 0.25 FLOW JBACK CS Attempt to flaw back from Mod 2. Interval died after flowing back 12 BBL 11:18 11:48 0,50 PERF CSG CS Perforate Module 4 and attempt to pump remaining slurry into interval. Pumped in 10 BBL before pressure !named out Called CTU for cleanout to 7600 feet., 11:48 13:18 1.50 RURD STIM CS Rig Down Stimulation crew, clean out frac nines, transfer gelled water to coil tank, secure location for evening 13:18 13:48 0.50 SAFETY MTG AF PJSM for BJ CTU, 13:48 16:48 3.00 TEST BOPE 'AF Pressure Test CTU BOP . Test to 4500#. Passed 16:48 17:18 0.50 TEST - BOPE AF Shut down started to wait on Vetco Gray to grease valves to *pressure test, but had not arrived. Decided to attempt to test after circulating fluid across valves. Obtained good 4,500 psi pressure teat of pipe rams and swab valve. 17:18 17:48 0,50 CLNOUT CSG AF Open Well no wellhead pressure start in hole, fluid close to surface RII-1 pumping .75 BPM 7psi whp, RIH -70 feet/min 17:48 19:18 1.50 CLNOUT CSG AF - At 3700 feet RIH at 55 to 60 fpm, .75 BPM, 8 psi 19:18 - 19:48 0.50 CLNOUT CSG AF At 5,000 feet 1:1 returns so far. PU weight 8,000 lb. Increased pump to 1.25 BPM 1600 psi pump pressure WHP 23 psi without pipe movement and Rill at 63 Ft/min WHP was 37 psi. 19:48 20:18 0.50 CLNOUT CSG AF - - At 6,500 feet. Pump pressure 1,666 psi. WH Pressure 38 psi. Pump rate -- 1.25 BPM. PU weight 5,500 lb. RIH at 65 ft/min. Clean returns 20:18 20:33 025 CLNOUT CSG AF At 7,115 feet tag solids. Bring pump rate to 2.0 BPM. Pump pressure -- 3,197 psi. WH pressure at 66 psi. RIM at 10 ft/min. Weight 8,350 lb. 20:33 20:39 0.10 CLNOUT CSG AF At 7,170 feet. RIH at 25 ft/min. Weight at 5,400 lb, 1:1 returns. _ 20:39 20:54 0.25 CLNOUT CSG AF At 7,466 feet. RIH at 25 fttrain, Weight at 5,000 lb_ Sand in returns. 20:54 21:00 0.10 CLNOUT CSG AF At 7,600 feet, Stop. Pull up 28 feet to 7,575feet. Weight 7,450 lb. 21:00 21:06 0.10 CLNOUT CSG AF Go back to 7,600 feet Stop. Weight 5,275 lb Sand in returrii.. VVVVVit.pelOtOri.COM Page 11/14 Report Printed: 7117/2008 • Operations Summary Report Well Name: KENAI BELUGA UNIT 41-18X oPs Trouble Irk; Nstarrnr,44 ,Endone, opecode fttivity code smug ; 2t06 21:18 0.20 CLNOUT CSG AF At 7,600 feet. Purnp rate 2.0 BPM. WH pressure 71 psi. Returns with sand. Pump Pressure 3,589 psi. Weight 5;00Q lb. 21:18 21:24 0.10 CLNOUT CSG AF At 7,600 feet. Returns clean. POOH at 25 feethrlin increasing rate to 110 fprn, Puny rate 2.0 BPM. Pump pressure 3,532 psi. WHP matches equivalent pump rate, accounting for POH velocity 21:24 22:54 1.50 CLNOUT CSG TA MSCT Level wind failure - had to replace bushings 22:54 23:24 0.50 CLNOUT CSG AF 0014., after maintaining 2 BPM rate to 200 feet. 23:24 23:54 0.50 SECURE WELL AF Safety Meeting. tdown injector Head and secure well. Dolly Operations Report Date: 618/2008 Job Category: COMPLETION 24 Hr Summary fracturestimulate Module 3-12, 9 intervals, li.pkt?pp 4,:airT4tnitt,::e'r3Vt: IS Time '4 'End Meti*,Dur*.thnirt ilowcod04-41 riAa*todei,41-.;.$0tV .APAbb,te 07:00 07:30 0.50 SAFETY MTG AF - 07:30 07:45 0.25 PERF CSG AF -- 07:45 19:45 12.00 PUMP FRAC TA MSSM Power takeoff and hydraulic pump on hydration unit failed. Job will have to be shut down for the day white repairs are being made or replacements secured, Also looking at possibility of splicing in auxiliary hydraulic power supply unit, --- Report Date: 6/10/2008 Job Category: COMPLETION 24 Hr Summary wait on BJ Services, hydration unit PTO and hydraulic pump failed. Waiting on parts out of Seattle ' 4". Eqrri, bt91),t nrrtibbr!PAreir''- , AittzP,(144g 0 C!' Spur * trOckchts EtktaltiV '0 . zNN"i';. 00;00 00:00 24.00 WAITON EQIP TA MSSM BJ services hydration unit failure. Lost PTO and hydraulic unit, waiting on parts from Seattle Report Date: 6/11/2008 Job Catoey: COMPLETION 24 fir Summary Wait on BJ Services hydration unit parts 16;00 08:00 16.00 WAITON EQIP TA MSSM Waiting on parts for PTO and hydraulic pun)) for hydration unit 08:00 09:00 1.00 SAFETY MTG AF PJSM - Hurs on duty, right to stop authority,active gas production pad, alarms, buddy rule , three second rule, muster area, 2nd muster area 09:00 10:00 1.00 WAITON EQIP TA MSSM Testing hydration unit, treating lines, transducers - failure / chengeout 10:00 1015 0.25 PUMP FRAC AF fracture stimulate modules 3/4 successful 10:15 1021 0,10 PERF CSG AF Perforate module 5 10:21 10:36 0.25 PUMP FRAC AF fracturastimulate inodule 5 successful 10:36 10:42 0.10 PERF 'CSC AF perforate module 6 10:42 10:57 0.25 PUMP FRAC AF fracture stimulate module-6- successful 10:57 11:03 0.10' PERF CSG AF Perforate module 7 11:03 11:18 0.25 PUMP FRAC AF fracture stimulate Module 7 - unsuccessful 1 screened out 11:18 12:18 1.00 FLOW BACK CS flow back to tank to attempt to clean out wellbore. Flowed back 60 of 62 barrels in casing volume 12:18 12:33 0.25 PERF CSG AF perforate 8 / 9 combo. firing heed pressure 368 0#. 12:33 12:48 0.25 PUMP "FRAC AF fracture stimulate modules 8 / 9. Sand in formationj 35,339# 20/40, flex - 5,053#, water 403 BBL, frac successful 12:48 12:54 0.10 PERF CSG AF perforate module 10. Firing head pressure 5696# 12:54 13:09 0.25 PUMP FRAC AF fracture stimulate module 10. Screened out. Sand in formation - 24,637# 20/40, flex -3519#, water 177 BBL. 3560# left in casing. Est. sand top at 7937' MD in casing 13:09 14:09 1.00 FLOW BACK AF flow back module 10 14:09 115:09 1.00 RURD OTHR CS Rig down BJ frac crew, 1-land well over to CTU cleanout crew 15:09 15:54 0.75 SAFETY MTG AF Fst sand tort nt 5300% . Last module frao'd from 6594 to 6604'MD. Cleanout.will be from est. sand top (5300') to 6500' which is 100 feet above last module frac'd. Other safety topics included musterarea, overhead loath, job assignments, clear safety glasses, pinch points, active gas production pad, red lights, blue lights, sirens, secondary muster area. three second Me, buddy rule, arctic terns etc. 15:54 21:54 - 6.00 CLNOUT CSG - - AF Clean out sand bridge above Module 10 in preparation for fracture stimulation of Modules 11-13 tomorrow. I will update cleanout operations in morning when 1 receive those note from Phil Snider - - www.petoton.com Page 12/14 Report Printed: 7/17/2008 • • Operations Summary Report Well Name: KENAI BELUGA UNIT 41 -18X Daily Operations Report Date: 6/12/2008 Job Category : COMPLETION -_T__ _. 24 Fah Summary Clean .out to top Mod 10, frac stim 11.13 a ,�., ;•� x"% r A'm _ t Start i a_- , E nmb Abut- ,, ?, t3p$Sode. t COd @x k st8t119 ,% `S-CbdB - ,e -';,, i....:: -.y' t._1 ?4 � a;,,`�, 1 'I�,II81t� ` +,e.Y.a ✓ f.� ,�"� 'xc_ 00 ;00 00:30 0.50 RURD COIL AF Rig up coil tubing unit to clean out to top of Module "10 (6594 6604'MD). Clean out will stop at 6500 feet to leave 100 feet on top of flapper 00 :30 00 :36 0.10 TEST BOPE AF shell test CTU BOP equipment to 1000#- test good 00:36 01:00 0410 CLNOUT CSG AF Running in the hole with Coiled Tubing. at 1 BPM pump rate --70 feet /min Obtained pick up weight at 2700 feet 01:00 02:00 1.00 CLNOUT CSG AF Increase pump rate to 1.75 BPM at 3160 feet, when tagged trace of sand, -50 fpm 02 :00 02:30 0.50 CLNOUT CSG AF Pull test at 4,600 ft, sand In returns, Continue in hole at 1.75 BPM, 50 ft/min. 02:30 03:00 0.50 CLNOUT CSG AF Pull test at 5,700 ft, intermittent sand in returns, Continue in hole at 1.,75 BPM, 40 ft/min, 58 psi WHP while RIH 03:00 03 :15 0.25 CLNOUT CSG AF at 5940 feet heavy sand back, 62 psi WHP increased pump rate to 1.9 BPM, RIH at 20 ft / min. WHP 68 psi 6315 03:45 0;50 CLNOUT CSG AF On bottom at 6,500 , 25 foot pull test, WHP varying between 62 psi and 68 psi depending upon run in speed and sand concentration. 59 psi WHP static, Circulate 10 min. 03:45 03 :57 0,20 CLNOUT CSG AF Start POH increasing POH rate to -90 ft/min. Pumping 1.9 BPM, WHP decreased from 63 PSI to 47 PSI while POH due to displacement,. Clean returns after bottoms up, accounting for coil displacement after an aditi oral 5 minutes, backed pump rate down to 1.75 bbl/rnin for remainder of P011 till near surface. 03:57 05:12 1.25 CLNOUT CSG AF Out of hole. Well Dead. Tailgate meeting for safety and rig down of injector head. 05:12 05:57 0.75 SECURE WELL AF Secure well, Prep to frac again 05:57 12 :57 7.00 WAITOt4 E51IP AF wait on frac crews to finish last three zones, 12:57 13:27 _ 0.50 SAFETY MTG AF PJSM- head count 56 with GESI and construction personnel:. 13 :27 13 :57 0.50 RURD OTHR AF Gelled up fluids, pressure tested lines to 6400# - test good, checked primes on pumps, pressure up well to 1000 # prior to perforating Module 11 13 :57 14:03 0.10 PERF CSG AF Perforate Module 11- interval 6414 - 6424 ,, firing head pressure 6507# 14 :03 14 :27 0.40 PUMP FRAC AF Fracture stimulate Module 11 - Pumped 2# , flushed due to high t pressures. 14 :27 14:33 0.10 PERF CSG AF Perforated Module 12- interval 62 -6272 ft MD. Firing head pressure 74:28#= confirmed at surface. 14:;33 14:57 0,40 PUMP FRAC AF Fracture stimulated Module 12 - pumped 2#.4#,6# = Pumpe 16,511#/ 20/40 sand, 2362#' flex and 195 BBII water 14:67 15:03 0.10 PERF CSG AF Perforated Module 13 interval 6088 -6098 feet. - firing head pressure 8405#. Firing verified at surface. 15:03 15:27 0.40 PUMP FRAC AF Fracture stimulated Module 13 . pumped 2 #, 4#, 6#,8#. Pumped 22,1130# 20140 sand, 3163# flex, and 189 BBL water. 15 :27 17:27 2.00 'NVAITON EQIP AF Call CTU crew. (must. have 10 hours downtime) Released at 7 am this morning. 17:27 17:57 0.50 SAFETY MTG AF assignments, ct active gas production pad, blue lights, eed lights, sirens, buddy system, three second rule, muster points, arctic terns, sand top at 6500 feet, no flapper valves in welllore, clean out to bottom, shoot bottom module 1 17:57 18 :57 1.00 RURD COIL RF RU CTU - Shell test BOP to 4500# - test good. Start in hole at 7 pm 18 :57 19:57 1.00 CLNOUT CSG AF r Running in hole with Coil at 2600 feet, with commingled N2 /KCL mixture 19 :57 20 :57 1:00 CLNOUT CSG AF _ began tagging bridges at 4600 feet, washing through, with 750 SCM N2 and 1 BPM, WHP varying from 100 to 200 psi. 20 :57 22 :09 1.20 CLNOUT CSG AF Pull test above top perforations, 1 BPM, 760 N2 Rate, 228 WHP, 11,000 lb pick up weight. 4,200 lb Run in weight 22:09 22 :12 0.05 CLNOUT CSG AF Continue running in hole at varying rates, typically 20 feet /min, Did not tag any sign of flappers at Module 13, 12, 11, 10,9,8,7,6, but saw remnant of 5. Rocking choke due to sand and chunks of broken glass 22:12 22 :42 0.50 CLNOUT CSG AF Pull test at 7300, 10,800 lbs. WHP 318, Pump Pressure 2192 1 BPM with 745 psi SCF /min. 5,400 Rill weight. 22 :42 22:54 0.20 CLNOUT CSG AF Depth 7571. No flapper Module 4. Weight 6,400 Ib. www.peloto Page 13/14 Report Printed: 7/17/2008 •_ • 3 Operations Summary Report Welt Name: KENAI BELUGA UNIT 41 -18X Start ; _ 7 , E„ Yirme Due {brie) := Qps; s ACtIvRy �' 14 eta 3 i, e .3 >. 4 rComrnera! - 22 :54 2 2 :57 0.05 CLNOUT CSG AF Depth 7646. Increase porno rate to 1.25 BPM. Pump pressure 2,185 psi. N2 pump rate 750 scfm. WH pressure 450 psi 22:57 23:03 0.10 CLNOUT CSC AF Depth 7750. Slow rate to 10 ft/min.. 23:03 23 :06 0.05 CLNOUT CSG AF Depth 7770. increase pump rateto 1,5 BPM to manage W P 23:06 23:12 010 CLNOUT CSG AF Depth Decrease pump rate to 1.25, WHP 311 23:12 23 :30 0.30 CLNOUT CSG AF Depth 8077, 1.25 BPM 2385 Pump Pressure, 324 WHP , stable RIH at 10 FPM. Increased rate to -30 fpm. Returns clean, for the rnost part Daily Operations Report Date; 611312008 Job Category: COMPLETION 24 Hr Summary Clean out well to 8593'` SID and jet well in for well test s . ; . � Eiii! 11 FNr ,t'hm,„± a .. AcUirl , co V of s . . • 00 :00 00 :12 0.20 CLNOUT CSG AF Tag fairly ftrrntyat 8580. Washed to 8 : +.5. Pull test off bottom with PU wedight of 15,000 weight.. RiH and washed to 8593 in two tries 00:12 00:30 0.30 CLNOUT CSG AF Circulate on bottom and start creeping up the hole at 30 feet per minute. Once full bottoms up of straight liquid achieved, backed fluid rate to .75 13PM with 750 SCF 142. When coming off bottom, WHP 323 psi, with 2317 psi injection pressure. 00 :30 01 :00 0.50 CLNOUT CSG AF at 7650 decreased Liquid to .5 BPM, 750 SCF/min. WHP 360, Pump pressure 1550 psi. POH at 45 fern 010 01:30 0.50 GLNOUT 080 AF POH above all perfs. VA/HP increasing and fairly stable at 470' pat 01 :30 01:48 0.30 PERF CSG AF Brief Safety meeting; increase tension on traction. Pressure upon Green Line to Fire module 1 . Monitoring wellhead pressure of -500 psi. No signifincant change in WHP. Shot detection showed drop In pressure at correct firing pressure on green line at 4400 , continued pressuring up to 6 psi with no additional signs of firing. 01:48 01 :57 0.15 CLNOUT CSG AF Cut liquid to zero, holding at 750 SCFM, 1580 Pump Pressure. Wait for Expro to safely rig off of wellhead. 01 :57 03 1.75 JAR N2 AF POH with coil, dropping Nitrogen to 400 SCF/min. WHP decreasing from 500 psi to - 400 psi for most of trip. Turned Fluid Returns measurment over to Expro Testers, as it is now essentially all produced fluids.. Shut off N2 at 3,000 and continued out of hole, wellhead pressure increasing to over 500 psi; evenutalty had to start chinking well to keep from having solids out of top. Coil at surface with wellhead pressure over 600 psi. Llequid rates were -1500 BFPD 03 :42 04:00 0.30 JAR N2 AF Safety discussion on Well handover to testers and re- routing of flow path. Change flow path. -600 psi Flowing Tubing Pressure with choke half closed„ 04 :00 04:18 0.30 SECURE WELL AF Rig Down Injector head and BJ Coil for the day 04 :18 00 :$ a 19.70 FLOW TEST AF Flow Test Well through Expro Well Test Equipment www,petoton.com Page 14/14 Report Printed: 7/1712008 Marathon Oil Company Alaska Asset Team Marathon P.O. Box 1949 _ Kenai, AK 99611 MARATHON Oil Company v bizi) Telephone 907/283 -1371 jU Fax 907/283 -1350 Alask C; l 4 2008 July Jul 11, 2008 , , to s: :a Mr. Tom Maunder Alaska Oil & Gas Conservation Commission 333 W 7 Ave Anchorage, Alaska 99501 Reference: 10 -421 Gas Well Open Flow Potential Test Report Field: Kenai Gas Field Well: Kenai Beluga Unit 41 -18x Dear Mr. Maunder: Enclosed for your records is the Gas Well Open Flow Potential Test Report for KBU 41 -18x well. This well was completed into the Beluga and Upper Tyonek formations utilizing 13 Excape modules. Information provided on this report, is the result of data collected from a one point test. Please call me at (907) 283 -1371 if you have any questions or require additional information. Sincerely, 5 Kevin J. Skiba Engineering Technician Enclosures: 10 -421 Open Flow Report cc: Houston Well File See KBU 41 -18x Attachment List Kenai Well File KJS 1 ''' EC i:: i vf L.-:u pf,. + STATE OF ALASKA ALA OIL AND GAS CONSERVATION COMMI KA 1 4 2008 GAS WELL OPEN FLOW POTENTIAL TE � N . ?1g 4sio 1a. Test: U Initial U Annual U Special 1b. Type Test: U St I� AT Non Stabilized U Multipoint Ill Constant Time Isochronal • ❑ 'Ot h er 2. Operator Name: 5. Date Completed: 11. Permit to Drill Number: Marathon Oil Company 208 - 026 3. Address: P.O. Box 1949 6. Date TD Reached: 12. API Number: Kenai, Alaska 99611 -1949 50 - 133 - 20575 - 00 - 00 4a. Location of Well (Governmental Section): 7. KB Elevation (ft): 13. Well Name and Number: Surface: 324' FNL, 585' FEL, Sec 18, T4N, R11 W, S.M. 88' (21' AGL) Kenai Beluga Unit 41 - 18x Top of Productive Horizon: 8. Plug Back Depth(MD +TVD): 14. Field /Pool(s): 187' FSL, 1,043' FEL, Sec 7, T4N, R11W, S.M. 8,624' MD 8,535' TVD Kenai Gas Field / Total Depth: 9. Total Depth (MD + TVD): Beluga & Upper Tyonek Pools 269' FSL, 1,072' FEL, Sec 7, T4N, R11 W, S.M. 8,737' MD 8,648' TVD 4b. Location of Well (State Base Plane Coordinates): 10. Land Use Permit: 15. Property Designation: Surface: x - 275,280.0 Y - 2,356,284.9 Zone 4 A - 028100 TPI: x 274,833.0 Y 2,356,801.2 Zone 4 16. Type of Completion (Describe): Total Depth: x - 274,802.3 Y - 2,356,885.7 Zone 4 13 Module Excape 17. Casing Size Weight per foot, Ib. I.D. in inches Set at ft. 19. Perforations: (MD) From To 9 - 5/8" 40 8.835" 5,458' Mod 13 6,088' 6,098' Mod 12 6,262' 6,272' Mod 11 6,414' 6,424' Mod 10 6,594' 6,704' Mod 9 &8 6,820' 6,890' Mod 6 7,020' 7,039' Mod 5 7,205' 7,215' 18. Tubing Size Weight per foot, Ib. I.D. in inches Set at ft. Mod 4 &3 7,446' 7,506' 3 - 1/2" 9.3 2.992" 8,660' Mod 2 7,720' 7,730' 20. Packer set at ft: 21. GOR cf /bbl: 22. API Liquid Hydrocardbons: 23. Specific Gravity Flowing Fluid (G): NA - - 0.56 24a. Producing through: 24b. Reservoir Temp: 24c. Reservoir Pressure: 24d. Barometric Pressure (Pa): 0 Tubing ❑ Casing 116 F° 916 psia @ Datum 8535' TVDSS 14.73 psia 25. Length of Flow Channel (L): Vertical Depth (H): Gg: % CO % N % H Prover: Meter Run: Taps: 6088' MD 6000' TVD 0.56 0 - Facility - 26. FLOW DATA TUBING DATA CASING DATA Prover Choke Pressure Diff. Temp. Pressure Temp. Pressure Temp. Duration of Flow No. Line )( Orifice psig Hw F psig F psig F Hr. Size (in.) Size (in.) 1. 3.826 X 1.00 760 21.45 52 - - - - 4.00 2. X 3. X Basic Coefficient Flow Temp. Super Comp. No. (24 -Hour) I hwPm Pressure Gravity Factor Rate of Flow Pm Factor F Factor Q Mcfd Fb or Fp Ft 9 Fpv 1. 131.926 33.398 774.73 1.00 1.336 1.066 4,406 2. Temperature for Separator for Flowing No. Pr Tr z Gas Fluid T Gg G 1. 1.15 512 1.49 0.88 0.56 NA 2 Critical Pressure 673.1 3 Critical Temperature 343.2 Form 10 -421 R- ., I. r � F O t 2 ; 70118 CONTINUED ON REVERSE SIDE ap,is ( Submiip licate A401 • 9 Pc 2894 Pc Piz No. Pt Pt Pc -Pt Pw Pw Pc Ps Ps Pf -Ps 1. 775 600206.5729 2. 3. 4. 5. 25. AOF (Mcfd) 4,659 n 0.750 Remarks: SITP was calculated based on average SIBHP obtained from MFT data. A one point test is conducted to calculate AOF. I hereby certify t -t the foregoin. is true and and corre to the best of my knowledge. Signed a % / , .J w Title Engineering Technician Date July 11, 2008 DEFINITIONS OF SYMBOLS AOF Absolute Open Flow Potential. Rate of Flow that would be obtained if the bottom hole pressure opposite the producing face were reduced to zero psia Fb Basic orifice factor Mcfd/ hwPm Fp Basic critical flow prover or positive choke factor Mcfd /psia Fg Specific gravity factor, dimensionless Fpv Super compressibility factor = dimensionless Ft Flowing temperature factor, dimensionless G Specific gravity of flowing fluid (air= 1.000), dimensionless Gg Specific gravity of separator gas (air= 1.00), dimensionless GOR Gas -oil ratio, cu. ft. of gas (14.65 psia and 60 degrees F) per barrel oil (60 degrees F) hw Meter differential pressure, inches of water H Vertical depth corresponding to L, feet (TVD) L Length of flow channel, feet (MD) n Exponent (slope) of back - pressure equation, dimensionless Pa Field barometric pressure, psia Pc Shut -in wellhead pressure, psia Pf Shut -in pressure at vertical depth H, psia Pm Static pressure at point of gas measurement, psia Pr Reduced pressure, dimensionless Ps Flowing pressure at vertical depth H, psia Pt Flowing wellhead pressure, psia Pw Static column wellhead pressure corresponding to Pt, psia Q Rate of flow, Mcfd (14.65 psia and 60 degrees F) Tr Reduced temperature, dimensionless T Absolute temperature, degrees Rankin Z Compressibility factor, dimensionless Recommended procedures for tests and calculations may be found in the Manual of Back- Pressure Testing of Gas Wells, Interstate Oil Compact Commission, Oklahoma City, Oklahoma. Form 10 -421 Revised 1/2004 Side 2 KBU 41 -18x Kenai Gas Field Attachment List Logs • Formation Tester MD • Array Induction MD • Array Induction TVD • Photo Density Dual Spaced Neutron MD • Array Induction Vector Processing MD • Compensated Sonic MD • Compact Quad -Combo QuikLook MD 1:600 • Compact Quad -Combo QuikLook MD C -Thru • Hole Volume Caliper MD • Dual Radial Cement Bond Gamma Ray /CCL Compact Disc • Directional Survey • Wireline Log Data • Mud Log Data End of Well Report • • 0 . ; , , , 3 riL7' F. t k IA E s d II I\ \ t ` j F SARAH PAL/N, GOVERNOR � r j a . w l U .: ,, J i..) �..1 .._ ..- �./ A :; r [N \ b l i ALASKA OIL AND GAS , 333 W. 7th AVENUE, SUITE 100 CONSERVATION COMMISSION / ANCHORAGE, ALASKA 99501 - 3539 / PHONE (907) 279 -1433 FAX (907) 276 -7542 Craig Rang Senior Completions Engineer Marathon Oil Company PO Box 1949 Kenai, AK 99611 -1949 Re: Kenai Gas Field, Beluga /Tyonek Gas Pool, Kenai Beluga Unit 41 -18x Sundry Number: 308 -162 Dear Mr. Rang: Enclosed is the approved Application for Sundry Approval relating to the above referenced well. Please note the conditions of approval set out in the enclosed form. When providing notice for a representative of the Commission to witness any required test, contact the Commission's petroleum field inspector at (907) 659 -3607 (pager). As provided in AS 31.05.080, within 20 days after written notice of this decision, or such further time as the Commission grants for good cause shown, a person affected by it may file with the Commission an application for rehearing. A request for rehearing is considered timely if it is received by 4:30 PM on the 23rd day following the date of this letter, or the next working day if the 23rd day falls on a holiday or weekend. A person may not appeal a Commission decision to Superior Court unless rehearing has been requested. Sincerely, di Daniel T. Seamount, Jr. 2 Chair DATED thi3 day of April, 2008 Encl. oa f * • Marathon OiI Company /' M\ Marathon Alaska Asset Team P.O. Box 1949 M ARATHON OiI Company Kenai, AK 99611 Telephone 907/283 -1371 Fax 907/283 -1350 April 17, 2008 Mr. Tom Maunder RECEIVED Alaska Oil & Gas Conservation Commission C r�E 333 W 7 Ave APR 2 1 2008 Anchorage, Alaska 99501 Alaska Oil & Gas Cons. Commission. Reference: 10 - 403 Sundry Notice Anchorage Field: Kenai Gas Field Well: Kenai Beluga Unit 41 -18x Dear Mr. Maunder: Enclosed p lease find the 10 -403 Application Sundry Approvals for Sund A rovals for KBU 41 -18x. Marathon proposes to perforate the thirteen KBU 41 -18x Excape modules and fracture stimulate the Upper Tyonek / Lower Beluga formations through the upper 12 modules. Please contact me at (907) 283 -1371 if you have any questions or need additional information. Sincerely, e-buvw Kevin J. Skiba Engineering Technician Enclosures: 10 -403 Sundry Notice cc: AOGCC Work Procedure Houston Well File Current Well Schematic Kenai Well File KJS CLR lc STATE OF ALASKA X RECEIVED 'E "= ALA OIL AND GAS CONSERVATION COMM ION 1J APPLICATION FOR SUNDRY APPROVALS PR 2 1 2008 20 AAC 25.280 Gas ns. Comm10� 1. Type of Request: Abandon ❑ Suspend ❑ Operational shutdown ❑ Perforate [ lasks 01! � fiver er Alter casing ❑ Repair well ❑ Plug Perforations ❑ Stimulate Q Time Exten'slbrQ age Change approved program ❑ Pull Tubing ❑ Perforate New Pool 0 Re -enter Suspended Well ❑ 2. Operator Name: Marathon Oil Company 4. Current Well Class: 5. Permit to Drill Number: p y Development 0 Exploratory ❑ 208 -026 • 3. Address: PO Box 1949 Stratigraphic ❑ Service ❑ 6. API Number: Kenai Alaska, 99611 -1949 50- 133 - 20575 -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 El No El Kenai Beluga Unit 41 -18x 9. Property Designation: g71 • 10. KB Elevation (ft): 11. Field / Pool(s): o A - 028100 .. 2/OY 88' Kenai Gas Field / Beluga & Upper Tyonek 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): 8,737' 8,648' 8,624' 8,535' NA NA Casing Length Size MD TVD Burst Collapse Structural Conductor 118' 20" 139' 139' Surface 1,463' 13 -3/8" 1,484' 1,483' 5,020 psi 2,260 psi Intermediate 5,437' 9 -5/8" 5,458' 5,374' 5,750 psi 3,090 psi Production 8,639' 3 -1/2" 8,660' 8,571' 10,160 psi 10,530 psi Liner Perforation Depth MD (ft): Perforation Depth TVD (ft): Tubing Size: Tubing Grade: Tubing MD (ft): Packers and SSSV Type: Packers and SSSV MD (ft): 13. Attachments: Description Summary of Proposal 0 14. Well Class after proposed work: Detailed Operations Program ❑ BOP Sketch ❑ Exploratory ❑ Development 0 Service ❑ 15. Estimated Date for 16. Well Status after proposed work: Commencing Operations: June 3 , 2008 Oil ❑ Gas 0 Plugged ❑ Abandoned ❑ 17. Verbal Approval: Date: WAG ❑ GINJ ❑ WINJ ❑ WDSPL ❑ Commission Representative: 18. I hereby certify that the foregoing is true and correct to the best of my knowledge. Contact Kevin Skiba (907) 283 - 1371 Printed Name Craig L. Rang Title Senior Completions Engineer Signature Phone (907) 283 -1372 Date April 17, 2008 d iti. COMMISSION USE ONLY . Conditions of approval: Notify Commission so that a representative may witness Sundry Number: t 307 I Plug Integrity ❑ BOP Test 'In Mechanical Integrity Test ❑ Location Clearance ❑ Other: C X Cc1`1• CO l NA" tt°1"—Si'Ytfi 6C - & \S0 5 QOr i9Q5 -- V•ZAJ CAS or., CyGS vpS \ZpN f - A , \, Subsequent Form required: `Ab _ v S BFL v.% 0 E 2f AP PROVED BY Approved by: ,$ COMMISSIONER THE COMMISSION Date: 9 Form 10 -403 Revised 06/2006 J R 1 G 1 NA 1 Submit in Duplicate I Permit #: 208 -0260 KBU 41 -18X API #: 50- 133205750000 Pad 41 -18 Property Des: A 028100 444'FNL X 539' FEL KB: 21' AGL (88' KB Elevation) X= 274939.6 Sec. 18, T4N, R11W, S.M. (MARAT1101) Y= 2362144.95 - -- _ . [ Lat: 60° 26' 35.855" N Conductor Long: 151° 14' 47.610" W I . k i 20" K -55 133 ppf PE Spud: 16:00 hrs 3/14/2008 Top Bottom TD Reached: 3/27/2008 MD 0' 139 TVD 0' 139' i - Surface Casing 13 -3/8" L -80 68 ppf BTC Top Bottom MD 0' 1,500' / TVD 0' 1,500' 9 - 518" Casing Shoe @ 5,458' MD 16" hole, Cmt w/ 207 bbls 12 ppg, Type 1 Cmt Top of Cement (est.) 4000' above 3.5" shoe Intermediate Casing 1,458' MD 9 -518" L -80 40 ppf BTC @ Top Bottom MD 0' 5,458' ~ Di TVD 0' 5,374' Excape System Details fy 12-1/4" hole, Cmt wl 281 sks (166 bbls) Ceramic flapper valves below ) 10.5 ppg Class G cmt. each module as follows: Modules , - .' 3 & 4 connected w /flapper below [ j Module 3. Modules 8 & 9 connected _ ) Production Tubing 3 - 1/2" L - 80 9.3 ppf EUE w /flapper below Module 8 �� Tom Bottom MD 0' 8,660' Flappers MD (RKB): . D T VD 0' 8,571' Module 13 - 6,111' , Module 12 6,286' 01 8rd with 6.25" OD control line protectors Module 11 - 6,437' ) to 8,660' RKB. 8 -1/2" hole, Cmt wl 1,465 sks Module 10 - 6,618' DI (302 bbls) 15.8 ppg Class G cmt. Module 9 - NA ) Excape System Details Module 8 6,909' D� -13 Excape modules placed Module 7 - 6,955' � - Green c ontrol line for bottom 3 modules Module 6 - 7,044' DI - control line for modules 4 - 8 Module 5 - 7,229' - , ? - Red control line for modules 9 - 13 Module 4 - NA Di - All modules w/ flappers above module 1 Module 3 - 7,519' ) are disappearing flapper versions. Module 2 - 7,737' DI Module 1 - NA f ) Perfs MD (RKB): O Module 13 - 6,088 feet - 6,098 ft Module 12 - 6,262 feet - 6,272 ft Module 11 - 6,414 feet - 6,424 ft . Module 10 - 6,594 feet - 6,704 ft Module 9 - 6,820 feet - 6,830 ft Excape Float Shoe Module 8 - 6,880 feet - 6,890 ft @ 8,660 MD Module 7 - 6,932 feet - 6,942 ft Module 6 - 7,020 feet - 7,030 ft Module 5 - 7,205 feet - 7,215 ft TD PBTD Module 3a - 7,446 feet - 7,456 ft 8,737' MD 8,624' MD Module 3 - 7,496 feet - 7,506 ft 8,648' TVD 8,535' TVD Module 2 - 7,720 feet - 7,730 ft Module 1 - 8,570 feet - 8,580 ft Well Name & Number: KBU 41 -18X I Lease: Kenai Gas Field County or Parish: Kenai Peninsula Borough State /Prov:I Alaska Country:I USA Perforations (MD): Perf (TVD): Angle /Perfs: Angle @ KOP and Depth: BHP: BHT: 131 Completion Fluid: 6% KCL Dated Completed: Ground Level (MSL): 66' I Prepared By: Kevin Skiba Last Revison Date: 4/17/2008 4/17/2008 2:46 PM • • KBU 41 -18X Fracture Stimulation Desription Summary of Proposal Kenai Beluga Unit 41 -18X was drilled and cased as a 3.5" Monobore Excape completion containing thirteen Excape perforating modules. Each module will complete a different production interval with ten feet of perforations followed by fracture stimulations in each interval. Fracture stimulation operations will commence with the perforating and treatment of Module 1 followed by modules 2 through 13. All fracture stimulation operations are typically concluded in one day, unless screenouts occur. After all treatments have been performed, coiled tubing will be utilized to cleanout the wellbore of module isolation flappers and frac proppant to PBTD. The well will then be jetted in with nitrogen via the coil tubing. Once the well is flowing on its own, coil tubing will be pulled from the well and rigged down. Well testing operations will then commence and continue until an acceptable gas rate is acheived and produced frac water load volumes are at manageable levels. Once well is adequately cleaned up, well testing equipment will be rigged down and the well will be turned over to production. Request for Approval to Vent Gas Due to the nature of such fracture stimulations, large amounts of water are injected, along with the fracture proppant, that will have to be unloaded and cleaned up during the post fracture flowback/testing period. This unloading, or cleaning up period, requires the well to be vented to atmosphere until enough gas volume is achieved to flow the well into the high pressure sales gas system. The duration of this venting operation can last as little as a few hours up to a number of days based upon reservoir pressures, permeability, well performance, tubing size, and fracture placement success. For Marathon's gas well operations in the Kenai Gas Field, typical vent times are less than 144 hours. However, due to the uncertainty of exactly how long KBU 41 -18X will be required to vent to atmosphere, this request is for a maximum vent period of 144 hours with a maximum vent volume during that period of 12 MMCF of methane gas. This volume is minimized due to the utilization of the Excape completion process which enables all intervals of interest to be fracture treated on the same day and unloaded together at one time, instead of multiple frac days with multiple flowback periods each requiring the venting of gas. If you have any questions regarding this gas venting request, please get in touch with the contact person indicated on the Form 10 -403. STATE OF ALASKA ALASKA OIL AND GAS CONSERVATION COMMISSION Diverter Systems Inspection Report Submit to: Date: 14- Mar -08 Operation: Development X Exploratory: Drig Contractor: Inlet Drilling Rig No. GD1 PTD # 2080260 Rig Ph. # 283 -1312 Operator: Marathon Oil Co. Oper. Rep.: Rowland Lawson / Dan P Pe ep Byrd Field/Unit & Well No.: KBU 41 -18X Rig Rep: Brad Rasch /Joe Steiner Location: Sec. 7 T. 4N R. 11W Merdian Seward MISC. INSPECTIONS: ACCUMULATOR SYSTEM: Location Gen.: OK Well Sign: OK Systems Pressure: 3000 psig Housekeeping: OK (Gen.) Dig. Rig: OK Pressure After Closure: 1600 psig Reserve Pit: N/A Flare Pit N/A 200 psi Attained After Closure: min 35sec sec. Systems Pressure Attained: 3 mim 8 sec. DIVERTER SYSTEM INSPECTION: Nitrogen Bottles: Diverter Size: 21 1/4 in. psig Divert Valve(s) Full Opening: yes Valve(s) Auto & Simultaneous: yes MUD SYSTEM INSPECTION: Light Alarm Vent Line(s) Size: 16 in. Trip Tank: OK OK Vent Line(s) Length: 70' ft. Mud Pits: OK Ok Line(s) Bifurcated: no Flow Monitor. OK OK Line(s) Down Wind: yes Line(s) Anchored: yes GAS DETECTORS: Light Alarm Turns Targeted / Long Radius: N/A Methane OK OK Hydrogen Sulfide: OK OK RTE SCHEMATIC 16" Knife Valve 121.25" ann. Non Compliance Items 0 Repair Items Withii 0 Day (s) And contact the Inspector @ 659 -3607 Remarks: Tested all gas alarms, flowline sensor & PVT. AOGCC REP.: Lou Grimaldi OPERATOR REP.: Rowland Lawson Diverter Test (for rigs) BFL 05/29/03 Diverter Test031408.xls • 41111 ,4mmA T _. # I + �- SARAH PALIN, GOVERNOR ALASKA OIL AND GAS 333 W. 7th AVENUE, SUITE 100 CONSERVATION COMMISSION ANCHORAGE, ALASKA 99501 -3539 CONSERVATION �7 PHONE (907) 279 -1433 FAX (907) 276 -7542 Willard Tank Advanced Senior Drilling Engineer Marathon Oil Company 3201 C. Street Suite 800 Anchorage, AK 99503 Re: Kenai Gas Field, Beluga /Upper Tyonek, KBU 41 -18X Marathon Oil Company Permit No: 208 -026 Surface Location: 444' FNL, 539' FEL, SEC. 18, T4N, R1 1W, S.M. Bottomhole Location: 113' FSL, 1,034' FEL, SEC. 7, T4N, R11W, S.M. Dear Mr. Tank: Enclosed is the approved application for permit to drill the above referenced development well. This permit to drill does not exempt you from obtaining additional permits or an approval required by law from other governmental agencies and does not authorize conducting drilling operations until all other required permits and approvals have been issued. In addition, the Commission reserves the right to withdraw the permit in the event it was erroneously issued. Operations must be conducted in accordance with AS 31.05 and Title 20, Chapter 25 of the Alaska Administrative Code unless the Commission specifically authorizes a variance. Failure to comply with an applicable provision of AS 31.05, Title 20, Chapter 25 of the Alaska Administrative Code, or a Commission order, or the terms and conditions of this permit may result in the revocation or suspension of the permit. When providing notice for a representative of the Commission to witness any required test, contact the Commission's petroleum field inspector at (907) 659 -3607 (pager). Sincerely, Daniel T. Seamount, Jr. Chair DATED this ?, li day of February, 2008 cc: Department of Fish & Game, Habitat Section w/o end. Department of Environmental Conservation w/o end. • STATE OF ALASKA " e RECEIVED ALASKA OIL AND GAS CONSERVATION COMMISS ION FEB 2 1 2008 y�' PERMIT TO DRILL 1)-'; 20 AAC 25.005 Alasks Oil & Gas Cont Aommi sion la. Type of Work: 1 b. Current Well Class: Exploratory ❑ Development Oil ❑ ic. Specify if well is proposed for/f10 T0f1a8 __ Drill IS Redrill ❑ Stratigraphic Test ❑ Service ❑ Development Gas 0 Coalbed Methane ❑ Gas Hydrates ❑ Re -entry ❑ Multiple Zone 5 Single Zone ❑ Shale Gas ❑ 2. Operator Name: 5. Bond: Blanket SI Single Well ❑ 11. Well Name and Number: Marathon Oil Company Bond No. 5194234 KBU 41 -18X 3. Address: 6. Proposed Depth: 12. Field /Pool(s): 3201 C. Street, Suite 800, Anchorage, AK 99503 MD: 8,798 TVD: 8,708 Kenai Gas Field 4a. Location of Well (Governmental Section): 7. Property Designation: Beluga / Upper Tyonek Pool Surface: 444' FNL, 539' FEL, Sec. 18, T4N, R11W, S.M. A- 028100 Top of Productive Horizon: 8. Land Use Permit: 13. Approximate Spud Date: 113' FSL, 1,034' FEL, Sec. 7, T4N, R11W, S.M. March 29, 2008 Total Depth: 9. Acres in Property: 14. Distance to Nearest 113' FSL, 1,034' FEL, Sec. 7, T4N, R11W, S.M. 1,854.72 Property: 14 ft 4b. Location of Well (State Base Plane Coordinates): NAD 27 10. KB Elevation 15. Distance to Nearest Well Surface: x - 275,272.008 y - 2,356,290.224 Zone - 4 (Height above GL): (21' AGL) 88 feet Within Pool: 1,750 ft KBU 43 -7X 16. Deviated wells: Kickoff depth: 2,500 feet 17. Maximum Anticipated Pressures in psig (see 20 AAC 25.035) Maximum Hole Angle: 15.4 degrees Downhole: 5,438 Surface: 3,171 18. Casing Program: Specifications Top - Setting Depth - Bottom Cement Quantity, c.f. or sacks Hole Casing Weight Grade Coupling Length MD TVD MD TVD (including stage data) Driven 20" 133 K -55 PE 118' 0' 0' 139' 139' 16" 13 3/8" 68 L -80 BTC 1,479' 0' 0' 1,500' 1,500' 463 sacks 12 1/4" 9 5/8" 40 L -80 BTC 5,452' 0' 0' 5,473' 5,388' 315 sacks 81/2" 3 1/2" 9.3 L -80 EUE 8,777' 0' 0' 8,798' 8,708' 1,481 sacks 19. PRESENT WELL CONDITION SUMMARY (To be completed for Redrill and Re -Entry Operations) Total Depth MD (ft): Total Depth TVD (ft): Plugs (measured): Effect. Depth MD (ft): Effect. Depth TVD (ft): Junk (measured): Casing Length Size Cement Volume MD ND Conductor /Structural Surface Intermediate Production Liner Perforation Depth MD (ft):/ ' / Perforation Depth TVD (ft): 20. Attachments: Filing Fee a BOP ` Sketch El Drilling Program 0 Time v. Depth Plot ❑ Shallow Hazard Analysis ❑ Property Plat L Diverter Sketch 0 Seabed Report Li Drilling Fluid Program 0 20 AAC 25.050 requirements ❑ 21. Verbal Approval: Commission Representative: Date 22. I hereby certify that the foregoing is true and correct. Contact Printed Name Willard J. Tank Title Advanced Senior Drilling Engineer Signature 02/S r GOTT Phone 713 - 296 -3273 Date February 19, 2008 Commission Use Only Permit to Drill API Number: Permit Approval See cover letter for other Number:`a fe7: 5°121 :37SO00° Date: Zl24. / Os requirements. Conditions of approval : If box is checked, well may not be sed to explore for, test, or produce coalbed methane, as hydrates, or gas contained in shales: Other: '7aSdC3 QS, Zo c5�t --0,� \ r Samples req'd: Yes❑ No19 Mud log req'd: Yes❑ No g/ CCCJJJ H measures: Yes❑ NoLDirectional svy req'd: Yeafre No❑ ,1 ONsk p\ ‘)cc �Gv■ac_csc N)kt ,a 0 kAc,aS , S L ∎4 0 2 /2_4/ 9 F DATE: APPROVED BY THE COMMISSION , COMMISSIONER Form 10 -401 Revised 12/2005 ORFG IJ A L Submit in Duplicate • • Worldwide Drilling North America Mi) ( Marathon P.O. Box 3128 ARATHO Company Houston, TX 77253 -3128 Telephone 713- 629 -6600 Fax 713 - 499 -6737 February 19, 2008 John Norman Commissioner RECEIVED State of Alaska Alaska Oil & Gas Conservation Commission FEB 2 1 ZOO8 333 West 7 Ave, Suite 100 Anchorage, AK 99501 p{ Gil & Gas Cons Commission Reference: Drilling Permit Application Field: Kenai Gas Field Well: KBU 41 -18X Dear Mr. Norman Enclosed please find the PERMIT TO DRILL application, along with the associated attachments. The intent is to drill a well in the Beluga / Upper Tyonek Pool in the Kenai Gas Field. No completion is desired in the Sterling pool. As we have noted in earlier correspondence, the BLM Onshore Order No. 1, dated March 7, 2007 requires data sent to them to be in North American Datum 1983 (NAD 83). We also acknowledge Mr. Maunder's e-mail concerning the requirement for the surface location and directional data sent to the AOGCC to be in NAD 27. On our previous application for well Grassim Oskolkoff #7, we had the State Plane Coordinates specified on the 10 -401 in NAD 27 as required, and had a surface plat in NAD 27. For the directional data we utilized the National Geodetic Survey conversion in the program CORPSCON to calculate the State Plane Coordinates in NAD 27 for the planned and actual welipaths from the NAD 83 data and presented both in our directional survey attachment for the 10 -401. We also provided the same data electronically, so that the AOGCC had this for data input into their database. We are providing the same information for KBU 41 -18X as well. If you require further information, I can be reached at 713 - 296 -3273 or by e-mail at wjtank@marathonoil.com. Sincerely, R&D vATT Willard J. Tank Advanced Senior Drilling Engineer Enclosures ORIGINAL • I KBU 41 -18X Marathon Oil Company Drilling Program Alaska Afk MARATHON MARATHON OIL COMPANY DRILLING PROGRAM Kenai Gas Field KBU 41 -18X Originator: Will Tank February 18, 2008 Date Reviewed by: Pete Berga Z /Z Date Brian Roy Date 2/20/2008 CONFIDENTIAL MATERIAL Page 1 of 18 • • KBU 41 -18X Marathon Oil Company Drilling Program Alaska TABLE OF CONTENTS 1. Emergency Response Information 4 1.1 Directions to Location 4 1.2 Rig Contact Numbers 4 1.3 Marathon Emergency Response Contacts 4 1.4 Outside Emergency Response 4 1.5 Marathon Contact List 5 2. Regulatory Agency Contacts 5 2.1.1. Internal Regulatory Contact 5 2.1.2. External Regulatory Contact 5 3. Regulatory Compliance 5 4. Drilling Program Summary 6 4.1 General Well Data 6 4.2 Working Interest Owners Information 6 4.3 Geologic Program Summary 6 4.4 Summary of Potential Drilling Hazards 7 4.5 Formation Evaluation Summary 8 4.6 Drilling Program Summary 8 4.7 Casing Program Summary 10 4.8 Casing Design 10 4.9 Calculation of Maximum Anticipated Pressures (MAWP and MASP) 10 4.10 Casing Test Pressure Calculations 12 4.11 Blowout Prevention Equipment, Testing and General Procedures 12 4.11.1. Function Testing 12 4.11.2. Pressure Testing 13 4.12 Wellhead Equipment Summary 13 4.13 Directional Program Summary 13 4.14 Directional Surveying Summary 14 4.15 Drilling Fluid Program Summary 15 4.16 Drilling Fluid Specifications 15 4.17 Solids Control Equipment 16 4.18 Cement Program Summary 17 4.19 Bit Summary 17 4.20 Hydraulics Summary 18 4.21 Formation Integrity Test Procedure 18 2/20/2008 CONFIDENTIAL MATERIAL Page 2 of 18 • • KBU 41 -18X Marathon Oil Company Drilling Program Alaska Attachments Group Attachment Attached Commercial Information AFE Days /Cost vs. Depth Curves X Project Objectives and Scorecard RSO Coding Information X Requisitions Vendor List Bonus Program Drilling Contract Regulatory / HES Information Emergency Evacuation Plan X H2S Contingency Plan n/a Regulatory Permits X Regulatory Rules and Regulations Risk Analysis Miscellaneous Programs (Vendors) Bit Proposal X Cement Proposal X Directional Plan X Fluids Program X Wellhead E. ui • ment — Descri • tion/Drawin • s Drill String and BHA Summary Rig Mobilization /Mooring Procedure n/a Geological Information Location Map w/ offsets X Offset Data Proposed Formation Pore Pressure, Mud Wt & Fracture Gradient X Temperature Curves Geologic Structure Maps Geologic Cross Section Bathymetry Map n/a Analysis Riser Analysis n/a Station Kee in Anal sis — Moorin DP n/a Stress Check Casing Design X Maximum Allowable Overpull Miscellaneous Information Wellbore Diagram n/a Elevations Rig X Location Well Diagram X BOP Schematic X D e t a i l e d BOP Well Control Bridging Document • Casing Specifications X 2/20/2008 CONFIDENTIAL MATERIAL Page 3 of 18 • KBU 41 -18X Marathon Oil Company Drilling Program Alaska 1. Emergency Response Information 1.1 Directions to Location Method Directions Air Latitude - 60 °26'35.855 "N Longitude - 151°14'47.610"W NAD 83 From the Kenai airport, go 0.5 mile South on Willow Street. Turn East on Main Street Loop, go 0.3 miles. Continue East on Bridge Access Road 3.2 miles. Turn West on Kalifornsky Beach Road. Go West and then South, go approximately 5 miles, just Ground past the Kenai Gas Field office at Pad 34 -31. Turn East onto the next lease road South of the Kenai Gas Field office. Travel Southeast 1 mile to pad 14 -6. Go through pad and continue East 0.5 mile to pad 41 -7. Turn and go 1 mile South to Pad 41 -18. 1.2 Rig Contact Numbers Contact Office Cell Glacier Drilling Rig 1 Inlet Drilling Tool Pusher 907 - 283 -1314 907 - 394 -1321 Marathon Supervisor 907 - 283 -1312 907 - 394 -1317 1.3 Marathon Emergency Response Contacts Individual Postion Main Phone Alternative Kenai Gas Field Emergency Number 907 - 283 -6465 CERT 24 hrs Notification 1- 800- MOC -CERT CERT Crisis Center Houston 713- 296 -4230 713- 296 -4237 1.4 Outside Emergency Response Location Contact Phone Fire Kenai / Soldotna, Alaska 907 - 262 -4792 Ambulance Hospital Kenai / Soldotna, Alaska Central Peninsula Hospital 907 - 262 -4404 Kenai Police 907 - 283 -7879 Police Kenai / Soldotna, Alaska Soldotna Police 907- 262 -4455 State Police 907 - 262 -4453 Coast Guard 800 - 478 -5555 Spill and Contamination Alaska Alaska State Spill Reporting National Response Center Oil / Toxic Chemical Spills 800 - 424 -8802 Best Practices: 1 Policy: Post emergency notification information on rig floor, company man's and tool pushers' office Comments: 2/20/2008 CONFIDENTIAL MATERIAL Page 4 of 18 • 0 KBU 41 -18X Marathon Oil Company Drilling Program Alaska 1.5 Marathon Contact List Contact Title Office Mobile Facsimile Home Will Tank Drilling Engineer 713 - 296 -3273 713 - 203 -8398 713 - 499 -6737 832 - 934 -2617 Pete Berga Drilling Superintendent 907 - 565 -3032 907 - 529 -0551 _ 907- 565 -3076 907 - 346 -3763 Bryan Roy Drilling Manager 713 - 296 -3256 832 - 444 -4772 713 - 499 -6707 281 - 246 -4686 Jennifer Enos Geologist 713 - 296 -3319 713 - 408 -3583 Moksh Dani Reservoir Engineer 713 - 296 -3140 832 - 692 -4700 Craig Meese Completion Engineer _ 713- 296 -2214 713 - 725 -7114 Ken Walsh Production Engineer 907 - 283 -1311 907 - 394 -3060 907 - 283 -3050 John Nicholson Drilling Supervisor 907 - 283 -1312 907 - 394 -2641 907 - 283 -1313 Dan Byrd Drilling Supervisor 907- 283 -1312 907 - 394 -2641 907 - 283 -1313 Mitch Burns Drilling Supervisor 907 - 283 -1312 907 - 394 -2641 907 - 283 -1313 2. Regulatory Agency Contacts 2.1.1. Internal Regulatory Contact Contact Title Office Phone Cell Phone Home Phone Facsimile Chick Underwood Regulatory Compliance 713 - 296 -3254 979 - 830 -7927 979 - 836 -9390 713 - 499 -6748 2.1.2. External Regulatory Contact Contact Title Office Phone Facsimile 24 hr Emergency Pager AOGCC 907 - 793 -1236 AOGCC North Slope Pager - 907 - 659 -3607 BLM 907 -267 -1442 3. Regulatory Compliance Regulation Requirement 20 AAC 25.035 e 10 A BOP testing interval requirement is now 14 days. 20 AAC 25.035 e 10 F Requirement for a 24 hour notice to AOGCC prior to BOP test. Requirement for 2 pipe rams, one blind ram, and one annular for an operation where the maximum potential surface pressure of is greater than 3,000 psi. Marathon is requesting a waiver from the above regulation for KBU 41 -18X. We are requesting that the BOP stack be configured with one pipe ram instead of two, due to rig height restrictions in the running of the 3 1/2" EXCAPE production casing. 20 ACC 25.035 (e) (1) (B) (i) The height restriction involves having rig crew members routing control line and electrical line through the tubing head and tree adapter flange after the 3 1/2" casing is cemented and the BOP stack is picked up. This is prior to setting the casing on slips and cutting the casing sticking up. These lines control firing of the perforating guns and 1 the monitoring of downhole pressure and temperature in our EXCAPE completion system. Similar waivers have been requested for EXCAPE completion wells in the Kenai Gas Field and were granted. No problems were encountered while doing this operation on any of the wells. Utilizing the 13 5/8" 5M stack currently found on the Glacier Drilling #1 rig is more than sufficient for pressures to be encountered. Comments 2/20/2008 CONFIDENTIAL MATERIAL Page 5 of 18 • • KBU 41 -18X Marathon Oil Company Drilling Program Alaska 4. Drilling Program Summary 4.1 General Well Data Well Name KBU 41 -18X Lease / License Surface Location 444' FNL, 539' FEL, Sec. 18, T4N, R11 W, S.M. WBS Code DD.07.16237.CAP.DRL Slot/Pad KGF Pad 41 -18 Field Kenai Gas Field Spud Date 3/29/08 (est.) KB (above MSL) 88' County /Province Kenai Peninsula API No. GL (above MSL) 67' State / Country Alaska Permit No. Perm. Datum KB Total MD 8,798' Well Class Development Water Depth N/A Total TVD 8,708' Rig Contractor Glacier Drilling Water Protection Depth Rig Name Glacier Rig 1 Best Practices: 1 Comments: 4.2 Working Interest Owners Information Company Working Interest Address Phone Facsimile Marathon 100% P.O. Box 196168 907 - 561 -5311 907 - 565 -3076 Anchorage, AK 99519 -6168 4.3 Geologic Program Summary Surface Location Coordinates — NAD 83 From Lease/Block Lines 444' FNL, 539' FEL, Sec. 18, T4N, R11 W, S.M. Latitude 60° 26' 35.855" N Longitude 151° 14' 47.610" W UTM North (Y) 2,356,046.220' UTM East (x) 1,415,300.140' Tolerance Pore Pore MD - RKB TVD — RKB Pressure Pressure Possible Formation (ft) (ft) (psi) (ppg) Lithology Fluid Content Sterling A -8 (Not a Prod Target) 3,972 3,938 0.8 — 6.5 Sandstone Gas/Water Beluga (Not a Prod Target) 4,807 4,743 1.5 — 7.3 Sandstone Gas Middle Beluga (Primary Target) 5,494 5,408 5.8 — 8.5 Sandstone Gas Lower Beluga (Primary Target) 6,203 6,113 5.8 — 8.5 Sandstone Gas Tyonek (Primary Target) 7,328 7,238 5.8 — 10.0 Sandstone Gas Tyonek 72 -8 (Primary Target) 7,371 7,281 8.5 — 10.0 Sandstone Gas Tyonek 73 -1 (Primary Target) 7,405 7,315 8.5 —10.0 Sandstone Gas Tyonek 75 -8 (Primary Target) 7,647 7,557 8.5 — 10.0 Sandstone Gas Tyonek 76 -7 (Primary Target) 7,760 7,670 8.5 — 10.0 Sandstone • Gas 2/20/2008 CONFIDENTIAL MATERIAL Page 6 of 18 • KBU 41 -18X Marathon Oil Company Drilling Program Alaska Pore Pore MD - RKB TVD — RKB Pressure Pressure Possible Formation (ft) (ft) (psi) (ppg) Lithology Fluid Content Tyonek 78 -2 (Primary Target) 7,932 7,842 10.0 — 11.0 Sandstone Gas Tyonek 80 Coal (Not a Prod Target) 8,164 8,074 11.0 — 11.5 Sandstone Gas/Water Tyonek 84 -6 (Primary Target) 8,510 8,420 11.0 — 11.5 Sandstone Gas Tyonek 84 -6 Coal (Not a Prod Target) 8,682 8,592 11.5 — 12.0 Sandstone Gas/Water Tyonek 86 -2 (Primary Target) 8,707 8,617 11.5 — 12.0 Sandstone Gas Depth (KB) Horizontal Displacement (ft) MD TVD +N / -S +E/ -W Tolerance Target (ft) (ft) Location (Y) (X) (ft) Lower Beluga 6,203 6,113 113' FSL, 1,034' FEL, Sec. 7, T4N, R11W, S.M. 557 -495 Circle 200' radius Tyonek 7,328 7,238 113' FSL, 1,034' FEL, Sec. 7, T4N, R11W, S.M. 557 -495 Circle 200' radius TD 8,798 8,708 113' FSL, 1,034' FEL, Sec. 7, T4N, R11W, S.M. 557 -495 Circle 200' radius 4.4 Summary of Potential Drilling Hazards Depth KB Hazard Event (TVD) Discussion Precautions Lost Circulation in Low Pressure Intermediate Control losses by using sufficiently sized LCM, Take care not to surge the hole during Sterling and Beluga sands Hole including fibrous and calcium carbonate types. tripping operations. Over Pressured Tyonek 84 -6 Production Control using sufficiently high mud weight to control Kick tolerance is approximately 18 bbls. and 86 -2 Hole pore pressure. Potential Hazards Statement To comply with state regulations the Potential Hazards section and the well shut -in procedures must be posted in the driller's dog house. The man on the brake (driller or relief driller) is responsible for shutting the well in (BOPE or diverter as applicable) as soon as warning signs of a kick are detected and an influx is suspected or confirmed. A copy of the approved permit to drill must be kept on location and be readily available to the AOGCC or BLM inspector. This well's primary objective is gas and no oil sands are expected to be encountered. No H is anticipated. Gas sands will be encountered from +/- 3,972' MD (3,938' TVD) to total depth of the well. These sands will run from highly depleted to above normal pressure. Lost circulation and differential sticking are potential hazards in some of the Sterling and Beluga sands. Overpressured zones (up to 12 ppg) may be encountered in the Tyonek sands. The Flo -Pro mud system that will be used to drill the well will help reduce these risks and lost circulation materials will be on location. Weighting material will available on location for proper well control. Best Practices: 1 Comments: 2/20/2008 CONFIDENTIAL MATERIAL Page 7 of 18 • KBU 41 -18X Marathon Oil Company Drilling Program Alaska 4.5 Formation Evaluation Summary Interval LWD Electric Logs Mud Logs Surface None None None 0' — 1,500' MD Intermediate None None Basic with GCA, shale density, temperature in and 1,500' — 5,473' MD out, sample collection (10' samples). Production None Reeves Quad Combo, MFT Pressures. Basic with GCA, shale density, temperature in and 5,473' — 8,798' MD Pull GR- Neutron to surface. out, sample collection (10' samples). Completion N/A GR, CCL, CBL N/A Comments: 4.6 Drilling Program Summary Drive Pipe: N/A Conductor: 20" set to approximately 120', prior to drilling rig move. MIRU drilling rig. NU diverter. 1. RU crane and hammer. Drive 20" conductor to +/ -120 ft. RKB. RD crane and hammer. 2. Move in and rig up rotary drilling rig. 3. Install starting head 20" SLC x 21 1/4 ", 2M flanged. 4. Nipple up 21 1/4 ", 2M diverter, 16" diverter valve, and 16" diverter line. 5. Function test diverter and diverter valve. Best Practices: 1 Comments: Surface: Drill 16" hole to +/- 1,500' set 13 -3/8" casing. 1. Drill a 16" hole to 1,500' MD (1,500' TVD) per the directional plan. 2. RIH with 13 3/8" casing and hang off in the elevators. Make up stab -in sub and centralizer on 5" drill pipe. TIH with inner string and latch into stab -in float collar. Cement 13 3/8" casing. Sting out, shear out drill pipe wiper plug, and circulate drill pipe clean. TOOH with inner string. 3. Cut off 13 3/8" casing. ND diverter. 4. Install 13 3/8" slip lock connection X 13 5/8" 5M flanged multibowl wellhead. 5. NU 13 5/8" 5M BOP'S. Test BOP'S and choke manifold to 250/3,500 psi. 6. Set wear bushing. 7. Test surface casing to 1,500 psi. Best Practices: 1 During cementing operations, take returns in the cellar, instead of into the pits. Eliminates the clean up of pits from cement that circulated to surface. Vac trucks will pull from cellar. Comments: Intermediate: Drill 12 -1/4" hole to +/- 5,473' set 9 5/8" casing. 1. PU 12 1/4" PDC bit and directional BHA. Drill out float equipment and 20' of new formation. CBU. 2. Test shoe to an FIT of 13 ppg. Estimated Leak Off EMW is 15 ppg. 2/20/2008 CONFIDENTIAL MATERIAL Page 8 of 18 • KBU 41 -18X Marathon Oil Company Drilling Program Alaska 3. Drill 12 1/4" directional hole to 5,473' MD (5,388' TVD) as per directional program, short tripping as required. 4. At TD circulate hole clean. Make wiper trip. TOOH and lay down BHA. Pull wear bushing. 5. Change out variable pipe rams with 9 5/8" casing rams. Run test plug and test casing rams to 3,500 psi. 6. Run and cement 9 5/8" casing. Land hanger in multibowl wellhead. 7. Back out landing joint. Change out 9 5/8" casing rams with variable pipe rams. Run test plug and test rams to 250/3,500 psi. 8. Set wear bushing. Test casing to 1,500 psi. Best Practices: 1 Pre -heat mud mix water to help in early shaker screen blinding issues with the mud. Comments: Due to anticipated losses in the Sterling and Upper Beluga, both calcium carbonate and fibrous material may be needed. Care must be taken on trips to minimize the possibility of surging the hole. Production: Drill 8 1/2" hole to +/- 8,798' set 3 -1/2" EXCAPE string. 1. PU 8 1/2" bit and directional BHA. Drill float equipment and 20' of new formation. CBU. 2. Test shoe to leak off. Given higher pressures anticipated in the Tyonek the shoe needs to be tested to leak off. Estimated EMW 13 ppg. 3. Drill 8 1/2" hole to an anticipated TD of 8,798' MD (8,708' TVD) as per the directional program, short tripping as required. 4. At TD circulate hole clean. Make wiper trip. TOOH. 5. RU Precision. Run open hole logs as per plan. RD logging company. 6. TIH w/ 8 1/2" bit to TD for wiper trip. TOOH to 9 5/8" shoe and circulate until log evaluation is complete for picking EXCAPE modules. After picks are made, trip to TD and circulate clean. TOOH and lay down BHA and drill pipe. Pull wear bushing. 7. RU and run 3 1/2" EXCAPE casing string. RU logging company to correlate EXCAPE modules to open hole logs. RD logging company. 8. Cement 3 1/2" casing while reciprocating. Bump plug with 500 psi over displacement pressure. WOC. 9. PU 3 1/2" casing. PU BOP stack. Make control line and electric line connections to tubing bonnet assembly. Set slips. Cut 3 1/2" casing. 10. LD BOP. Set 3 1/2" packoff. NU 13 5/8" 5M X 3 1/16" 10M tubing head adapter and 3 1/16" 10M tree. Test tree to 5,000 psi. 11. Rig down and move out drilling rig. Note: Drill all hole sections with 5" drillpipe. Perforating guns will be run on the outside of the 3 1/2" production casing with a flapper valve just below each perforating gun. Guns to be activated by control line to surface. Best Practices: 1 Drill all hole sections with 5" drillpipe to maximize hole cleaning hydraulics. 2 Do not circulate on bottom longer than 1 hour prior to moving pipe on a short trip to minimize hole washout. This is important when waiting on log analysis to give EXCAPE module placement points. 3 Put lubricant in prior to drill out of intermediate shoe. 5% Lubetex is normally required, possibly more depending on solids in the mud. Comments: Completion: Completion will be done without a rig. This will include activating the EXCAPE perforating modules via hydraulic pressure on the control lines and fracture stimulation of targeted zones. Wellbore clean out will likely include slickline and possibly nitrogen jetting. Best Practices: 1 Comments: 2/20/2008 CONFIDENTIAL MATERIAL Page 9 of 18 0 • KBU 41 -18X Marathon Oil Company Drilling Program Alaska 4.7 Casinq Program Summary MD (ft) Connection API Ratings Casing Makeup Hole 4 5; - = o -- a g e ( w a Size Weight ID Drift O. D. Torque Size CO 2' U Q- _. (in) Top Bottom (lbs/ft) (in) (in) Grade Type (in) (ft-lbs) (in) 13 3/8 0 1,500 68 12.415 12.259 K -55 BTC 14.375 N/A * 16 3,450 1,950 1,300 9 5/8 0 5,473 40 8.835 8.679 L -80 BTC 10.625 N/A * 12 1/4 5,750 3,090 979 31/2 0 8,798 9.3 2.992 2.867 L 8rd 4.5 3,200 81/2 10,160 10,530 207 Best Practices: 1 Have float equipment made up at Tubescope's yard prior to bringing casing to location. Buck on all equipment to the pin end and not make up to box below, due to rig height restrictions. 2 * - Make up buttress connection to proper mark, not to a torque value. Comments: Overpull for the 3 1/2" string must be limited to 92,500 lbs. 4.8 Casing Design Casing Shoe Safety Factors Setting Maximum a) Casing Depth Mud Wt Frac. Form Surface n o Size Weight TVD When Set Grad Press Pressure 1.11 o (in) (lb/ft) Grade (ft) (lb /gal) (lb /gal) (lb /gal) (psi) m U i- 13 3/8 68 K -55 1,500 9.4 15.0 8.4 0 2.18 2.66 4.43 9 5/8 40 L -80 5,388 9.5 13.0 1.5 2,803 1.86 1.16 3.22 3 1/2 9.3 L -80 8,708 12.2 15.0 12.0 3,171 1.20 1.91 1.30 4.9 Calculation of Maximum Anticipated Pressures (MAWP and MASP) Setting Casing Depth Size TVD MAWP * MASP ** Mud /Gas (in) (ft) (psi) (psi) Percentage 13 3/8 1,500 2,329 0 30/70 9 5/8 5,388 3,997 2,803 30/70 3 1/2 8,708 7,021 3,171 30/70 * MAWP = Maximum allowable working pressure ** MASP = Maximum anticipated surface pressure The calculation method for MASPBHP has been modified from the standard AOGCC use of a Bottom Hole Pressure — 0.1 psi/ft gas gradient to what Marathon considers a more accurate Bottom Hole Pressure — 30% Mud Column — 70% Gas Column. This method follows the MMS standard for any well with a TVD of 12,000' or less. Marathon believes that constant gas monitoring and proper rig supervisor well control training will prevent the possibility of a wellbore being completely evacuated with only a gas gradient remaining. 2/20/2008 CONFIDENTIAL MATERIAL Page 10 of 18 • KBU 41 -18X Marathon Oil Company Drilling Program Alaska Surface casing: 13 3/8" (1,500' MD, 1,500' TVD) MASPfrac = ((Fracture gradient at shoe) x .052 x TVDshoe) - Hydrostatic pressure of gas column at the shoe. MASPfrac = (15.0 ppg x .052 x 1,500') - (0.1 psi /ft x 1,500') MASPfrac 1,170 psi - 150 psi MASPfrac = 1,020 psi. MASPbhp = BHPopen hole td — Hydrostatic pressure of mud portion — Hydrostatic pressure of gas portion MASPbh = (1.50 ppg x .052 x 5,388') — (0.3 x 9.5 ppg x .052 x 5,388') — (0.7 x 0.1 psi /ft x 5,388') MASPbhp = 420 psi — 799 psi — 377 psi MASPbhp = 0 psi MASP = MASPbhp = 0 psi - MAWP = (0.7 x Casing Burst) — (Mud Wt. — Backup Fluid Wt.) x .052 x TVD MAW P = (0.7 x 3,450) — (9.4 — 8.3) x .052 x 1,500' MAWP = 2,415 psi — 86 psi = 2,329 psi Intermediate casing: 9 5/8" (5,473' MD, 5,388' TVD) MASPfrac = ((Fracture gradient at shoe) x .052 x TVDshoe) - Hydrostatic pressure of gas column at the shoe. MASPfrac = (13.0 ppg x .052 x 5,388') - (0.1 psi /ft x 5,388') MASPfrac = 3,342 psi - 539 psi MASPfrac = 2,803 psi. MASPbhp = BH Popen hole td - Hydrostatic pressure of mud portion — Hydrostatic pressure of gas portion MASPbhp = (12.0 ppg x .052 x 8,708') — (0.3 x 12.2 ppg x .052 x 8,708') — (0.7 x 0.1 psi /ft x 8,708') MASPbh = 5,438 psi — 1,657 psi — 610 psi MAS Pbhp = 3,171 psi MASP = MASP frac = 2,803 psi MAWP = (0.7 x Casing Burst) — (Mud Wt. _ Backup Fluid Wt.) x .052 x TVD MAWP = (0.7 x 5,750) — (9.5 — 9.4) x .052 x 5,388' MAWP = 4,025 psi — 28 psi = 3,997 psi Production casing: 3 1/2" (8,798' MD, 8,708' TVD) MASPtrac = ((Fracture gradient at shoe) x .052 x TVDshoe) - Hydrostatic pressure of gas column at the shoe. MASPtrac = (15.0 ppg x .052 x 8,708') - (0.1 psi /ft x 8,708') MASPtrac = 6,792 psi 871 psi MASPtrac = 5,921 psi. MAS Pbhp = BHPopen hole td - Hydrostatic pressure of mud portion — Hydrostatic pressure of gas portion MASPbhP = (12.0 ppg x .052 x 8,708') — (0.3 x 12.2 ppg x .052 x 8,708') — (0.7 x 0.1 psi /ft x 8,708') MASPbh = 5,438 psi — 1,657 psi — 610 psi MASPbhp = 3,171 psi MASP = MASPbhp = 3,171 psi MAW P = (0.7 x Casing Burst) — (Mud Wt. — Backup Fluid Wt.) x .052 x TVD MAWP = (0.7 x 10,160) — (12.2 — 12.0) x .052 x 8,708' MAWP = 7,112 psi — 91 psi = 7,021 psi 2/20/2008 CONFIDENTIAL MATERIAL Page 11 of 18 • KBU 41 -18X Marathon Oil Company Drilling Program Alaska Best Practices: 1 Comments: 4.10 Casing Test Pressure Calculations Casing test pressure calculations are based on the lesser of (1) MASP, or (2) 70% of rated burst pressure of the casing adjusted for the mud weight used during the test less a 8.3 ppg back -up unless otherwise noted. AOGCC regulations state that casing pressures must be 50% of the BOP working pressure documented on the approved permit to drill. Best Practices: 1 - Comments: 4.11 Blowout Prevention Equipment, Testing and General Procedures BOP PROGRAM Casing Test Test Casing Test Fluid Pressure Size MAWP MASP Press Density BOPS Low /High Casing (in) (psi) (psi) (psi) (lb/gal) Size & Rating (psi) • (1) 13 -5/8" 5M annular Surface 13 3/8 2,329 0 1,500 9.4 (1) 13-5/8" 5M pipe ram 250/3,500 (1) 13 5/8" 5M blind ram (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 Intermediate 95/8 3,997 2,803 1,500 9.5 250/3,500 (1) 13 5/8" 5M blind ram (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 31/2 7,021 3,171 2,000 12.2 250/3,500 (1) 13 5/8" 5M blind ram (1) 13 -5/8" 5M drilling spool with 3 -1/8" 5M outlets 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. The choke manifold will be rated 3 -1/8" x 5000 psi. It will include a remote hydraulic actuated choke and a hand adjustable choke. Also included is a poor -boy gas buster, and a vacuum -type degasser. A flow sensor will be installed in the flowline and the mud pits will contain sensors to measure the volume of fluid in the surface mud system. Both sensors will contain readouts convenient to the drillers console. 4.111. Function Testing Function Regularly. 2/20/2008 CONFIDENTIAL MATERIAL Page 12 of 18 • • KBU 41 -18X Marathon Oil Company Drilling Program Alaska 4.11.2. Pressure Testing The Marathon Drilling Supervisor will verify all pressure tests of BOP's, surface lines, seals, casings and FIT or LOT tests. All tests are to be recorded on the IADC and daily drilling reports. Best Practices: 1 Comments: 4.12 Wellhead Equipment Summary Component Description Casing Hanger Type 13 5/8" x 9 5/8" Fluted Casing Head 13 -5/8" 3M X 13 -3/8" Slip Loc W/ 2, 2" LPO, Landing Base for 20" Conductor, U, AA, PSL1, PR1 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 3 1/2" Manual Tubing Head U,AA,PSL1,PR1 Slip Adapter Flange 13 -5/8" 5M X 3- 1/16" 10M W/ Seal Pocket and 3" H BPV Threads Best Practices: 1 Comments: Control lines and electric cable for the EXCAPE system will be routed through the adapter flange ports. 4.13 Directional Program Summary Build Turn Coordinates Sec. MD TVD Rate Rate Dogleg Inclination Azimuth +N / -S +E/ -W VS No. Description (ft) (ft) (° /100') (° /100') (° /100') (deg) (deg) (ft) (ft) (ft) 1 Tie On 0 0 0 0 0 0 318.389 0 0 0 2 KOP 2,500.00 2,500.00 0 0 0 0 318.389 0 0 0 3 Build up Section 2.00 0 2.00 318.389 4 End of Build 3,267.91 3,258.75 2.00 0 2.00 15.358 318.389 76.49 -67.94 102.31 5 Hold Section 0 0 0 15.358 318.389 6 End of Hold 5,178.73 5,101.33 0 0 0 15.358 318.389 454.88 - 404.01 608.39 7 Drop Section -1.50 0 1.50 318.389 8 End of Drop 6,202.62 6,113.00 -1.50 0 1.50 0 318.389 556.87 - 494.60 744.80 9 TD 8,797.62 8,708.00 0 0 0 0 318.389 556.87 - 494.60 744.80 2/20/2008 CONFIDENTIAL MATERIAL Page 13 of 18 • • KBU 41 -18X Marathon Oil Company Drilling Program Alaska c 1 KBU 41 -18X Lower Beluga KBU 41 -18X Tyonek 1000 13 3/8 1 - -- r - -- 1 2000 ` S 8 c\i 3000 - • Elm - �� ■ 0 500 - - — - - - - KBU 41-18X TD co s 4000 _ _. _ _ ± L 5 000 0 ✓ _ KBU 41 -18X Lower Beluga 1 1 111 ° Z cu a) • 6000 o F- - KBU 41 -18X Tyonek co 7000 - ' II , - \ ` 0 8000 -- - KBU 41- 18XTD ,_a� 31/2" - - I 1 1 I I 1 1 1 1 1 1 I I I l ' 1 I I -3000 -2000 -1000 0 1000 2000 3000 4000 -500 0 Vertical Section at 318.39° (2500 ft/in) West( -) /East( +) (300 ft/in) Comments: Vertical section calculated from a reference azimuth of 318.39° taken from surface location to bottom hole location. Potential Well Interference: Well Distance (ft) Depth (MD) KBU 13 -8 41.57 1,653 KBU 24 -7X 59.31 11 KU 11 -17 244.79 1,361 KBU 33 -7 267.61 1,178 KU 24 -7 349.86 331 KU 41 -18 364.35 Surface No serious interference exists. See attached directional plan and anticollision analysis for more details. Best Practices: 1 Comments: 4.14 Directional Surveying Summary Interval MD (ft) MWD Survey Magnetic Multishot Gyro Multishot Other Survey Remarks Tool Surface 0 — 1,500' X Intermediate 1,500' — 5,473' X Production 5,473' — 8,798' X Best Practices: 1 2/20/2008 CONFIDENTIAL MATERIAL Page 14 of 18 • • KBU 41 -18X Marathon Oil Company Drilling Program Alaska Comments: 4.15 Drilling Fluid Program Summary Interval — TVD Minimum Inventory From To Density Gel (ft) (ft) (lb/gal) Fluid Description Additives Viscosifier Barite 0 1,500 8.6 — 9.4 Gel / Gelex Spud Mud Gel, Gelex, Soda Ash, Caustic, Barite, Polypac Supreme UL, Sodium Meta Bisulfate Flo -Vis, PolyPac Supreme UL, KCI, SafeCarb 1,500 5,388 9.0 — 9.5 6% Flo -Pro NT w/ Safecarb 10,40,250, Mix II, Barite, Caustic, Condor 404, Sodium Meta Bisulfate, Lubetex Flo -Vis, PolyPac Supreme UL, KCI, SafeCarb, 5,388 8,708 9.4 — 12.2 6% Flo -Pro NT w/ Safecarb Barite, Caustic, Condor 404, Sodium Meta Bisulfate, SteelLube, Lubetex Best Practices: 1 Because the production zone will be fracture stimulated, the mud system from the intermediate section will be re -used for the production hole after cleanup through the on -site centrifuge. Comments: 4.16 Drilling Fluid Specifications Interval — TVD LSRV Drill From To Density Vis 1 min PV YP Fluid Loss Solids (ft) (ft) (Ib /gal) (sec /qt) (Ib. /100f 2 ) (cP) (lb/100 ft (cc) pH ( %) 0 1,500 8.6 — 9.4 60 - 100 N/A . 25 - 35 NC - 12 +/- 9.5 < 7.5 1,500 5,388 9.0 -9.5 40,000+ 8 -12 7 -9 +/ -9.5 +/ -5 5,388 8,708 9.4 — 12.2 30,000 + 10 - 16 4 — 7 +/- 9.5 +/- 5 Best Practices: 1 As a standard practice for long string completions, the drilling mud that will remain above the top of cement on the 3' /s" production casing will be treated with corrosion inhibitor (Congor 303A) at a concentration of 1 drum per 100 barrels of drilling fluid. Comments: See mud prognosis for details. Sized CaCO3 (SafeCarb) will be used to control Ieakoff. 2/20/2008 CONFIDENTIAL MATERIAL Page 15 of 18 • • KBU 41 -18X Marathon Oil Company Drilling Program Alaska 4.17 Solids Control Equipment o • N N U m N N m 0)c 0 E a) C U N U) (0 Y c U - 0 a s a F, v E 2 Interval • 0 0 U 0 U N Comments 0 — 8,798' MD X X X X Closed Loop System, Full Containment, Run shakers with finest screens possible Equipment Specifications Item (quantity, design type, brand, model, flow capacity, etc) Shaker 2 — Swaco Mongoose PT Desander N/A Desilter 1 — Derrick Model 0522 Mud Cleaner N/A Centrifuge 2 — MI /Swaco units Cuttings Dryer N/A Cuttings Injection Marathon G &I Facility Zero Discharge N/A i Best Practices: 1 Have vacuum trucks pull fluids from trough above slop pit to more efficiently pull fluids for disposal. This minimizes water added to the solids to suspend for pickup by the trucks, thus minimizing total volume to be disposed of. Comments: • 2/20/2008 CONFIDENTIAL MATERIAL Page 16 of 18 • • ' KBU 41 -18X Marathon Oil Company Drilling Program Alaska 4.18 Cement Program Summary Depth Gauge Top of Cement Gauge Ann Vol Slurry Casing Hole Ann Vol With OH Density Open Hole Thickening Size MD TVD Size MD TVD To TOC Excess Lead/Tail Excess Time (in) (ft) (ft) (in) (ft) (ft) (ft (ft (ppg) ( %) (hrs) 20 120 120 Driven N/A 13 3/8 1,500 1,500 16 0 0 693 1,162 12.0 75 8 9 5/8 5,473 5,388 12 1/4 3,400 3,386 649 943 10.5 40 8 31/2 8,798 8,708 81/2 4,900 4,833 1,294 1,733 15.8 40 N/A Mix Water Compressive Casing Slurry TOC Strength Size Density Qty Yield Vol MD Qty WL FW (psi) (in) Slurry Cement Description (lb/gal) (sx) (ft /sx) (ft (ft) (gal /sx) Type (cc) ( %) 8 hr 24 hr 13 3/8 Tail Type I Cement 12.0 463 2.51 1,162 0 11.28 Fresh 812 0 196 818 9 5/8 Tail Class "G 10.5 315 2.99 943 3,400 12.39 Fresh 24 0 145 1,441 3 1/2 Tail Class "G" 15.8 1,481 1.17 1,733 4,900 4.97 Fresh 24 0 226 2,632 Best Practices: 1 Pump several fluid calipers at TD to help with the hole volume determination from the open hole caliper log. Comments: See cement prognosis for details and spacer specifications. 4.19 Bit Summary Interval — MD Type Recommended Estimated Expected From . To Size WOB Rotating Minimum ROP (ft) (ft) (in) Manufacturer Model No. IADC (kips) RPM Hours (ft/hr) 0 1,500 16 Christensen MX -1 115 1 - 4 80 — 350 1,500 5,473 12 1/4 Christensen HCM 506Z M323 Up to 52 Motor 5,473 8,798 8 1/2 Christensen HCM605 M323 Up to 25 Motor Best Practices: 1 Comments: See bit prognosis for additional information. If a second bit is necessary for the 12 hole a MX -C3 (IADC 137) should be used to finish this section. Back up bits for the 8'h" hole section will consist of mill tooth and TCI tricone bits. 2/20/2008 CONFIDENTIAL MATERIAL Page 17 of 18 • • KBU 41 -18X Marathon Oil Company Drilling Program Alaska 4.20 Hydraulics Summary Max Press @ Displacement @ Max Rate @ Liner ID Stroke 90% WP 95% Vol. eff 95% Vol. eff Hole Sections Used Qty Make Model (in) (in) (psi) (gal /stroke) (spm /gpm) On 5 8 2,597 2.04 125 / 255 Surface 3 National Oil Well A600PT 5 8 2,597 2.04 125 / 255 Intermediate 5 8 2,597 2.04 125 / 255 Production Est. Hole Pump Standpipe Openhole Nozzle AP at Depth -MD Size Rate Pressure Min AV MW ECD Size bit (ft) (in) (gpm) (psi) (fpm) (ppg) (ppg) (32 "s) (psi) Remarks (Drill string configuration) 0 — 1,500 16 650+ 1,400 69 9.3 2 — 18 s Actual Data KBU 24 -7X (@ 1,636' MD) 1 -16 1,500 -5,473 12 1/4 550 1,910 108 9.2 9.41 6— 13's MI Virtual Hydraulics (@ 5,473' MD) 5,473 — 8,798 8 1/2 400 2,169 207 12.2 12.75 5 — 15's MI Virtual Hydraulics (@ 8,798' MD) Best Practices: 1 Drill all hole sections with 5" drillpipe to maximize hole cleaning hydraulics. Comments: See separate hydraulics calculations. Annular velocities in the 16 ", 12 1 /4 ", and 8'/2" holes were calculated using 5" drillpipe. 4.21 Formation Integrity Test Procedure Surface and Intermediate casing shoes will be tested to Leak -off. Prior to drilling out of casing strings, test BOPs and casing to the specified pressure listed in the BOP Program section. Plot test and record volume required on the drilling report. Leak -off tests (LOT) are to be conducted as described below: 1. Drill 20' to 25' of new formation below the casing shoe and condition the mud to the same properties in and out. 2. Pull drill string into the casing shoe and close ram preventer, and line up to the choke manifold with a closed choke. 3. Begin slowly pumping fluid down the drill string at 1/2 bpm while recording casing and drillpipe pressures at 1/2 bbl intervals. A running plot of pressure versus volume should be kept by the drilling foreman while the test is in progress. 4. Stop pumping when the pressure curve departs form a straight line sufficiently to indicate leakage into the formation. Record as ppg equivalent mud density in the IADC and morning reports. 5. Monitor and plot pressure drop and time after shut -in for 10 minutes or until the shut -in pressure stabilizes. Best Practices: 1 Comments: 2/20/2008 CONFIDENTIAL MATERIAL Page 18 of 18 • • Operator Certification Field: Kenai Gas Field Well: Kenai Beluga Unit, KBU 41 -18X Surface Location: 444' FNL, 539' FEL, Sec. 18, T4N, R11 W, S.M. I hereby certify that I, or someone under my direct supervision, have inspected the drill site and access route proposed herein; that I am familiar with the conditions which currently exist; that I have full knowledge of state and Federal laws applicable to this operation; that the statements made in this APD package are, to the best of my knowledge, true and correct; and that the work associated with the operations proposed herein will be performed in conformity with this APD package and the terms and conditions under which it is approved. I also certify that I, or the company I represent, am responsible for the operations conducted under this application. These statements are subject to the provisions of 18 U.S.C. 1001 for the filing of false statements. Executed this 21' day of January , 20 08 Name Willard J. Tank .��° -c G�{T? Position Title Advanced Senior Drilling Engineer Address P.O. Box 3128, Houston, TX 77253 -3128 Telephone 713 - 296 -3273 Field Representative Pete Berga (Drilling Superintendent) (if not above signature) Address 3201 C Street, Suite 800, Anchorage, Alaska 99503 (if different from above) Telephone 907 - 565 -3032 (if different from above) E -mail wjtank @marathonoil.com (optional) • • Marathon Oil Well KBU 41 -18X Diverter Flow line 21 1/4" 2M Diverter _S 16" Automatic Knife Valve Diverter Spool 1 1 II 16" Diverter Line . • Marathon Oil Well KBU 41 -18X BOP Stack Flow Nipple Flow Line 13 5/8" 5M Annular Preventer _______•. 13 5/8" 5M Double III Pipe Ram El Ram Preventer 2 1/16" 5M . Blind Ram - Check Valve 2 1/16" 5M Manually 3 1/8" 5M Manually Operated Valves Operated Valve _______________,_- 1 / _ X -- X ® Choke IIII[©]II X 13 5/8" 5M Cross I 3 1/8" 5M Hydraulically Operated Valve 13 5/8" 5M x 13 5/8" 5M � Drilling Spool lin Bottom of mud cross must be 24 -45 " from ground level for Glacier 1 rig placement. 13 5/8" 5M Tubing Head Flange • • Marathon Oil Well KBU 41 -18X Choke Manifold To Gas Buster To Blooey Line Bleed off Line to Shakers V. A M n VIP u 1, 1 1 I I 1 1 0 0 0 O 1 'I 1 �I I� �I I 1 1 I 1 I 1 1 I I I 1 ■ 1 Ahr ■ r1 r1 VP © `1A u m II]IIlI[O]II 0 IPO]IIII[O]II 13" 5M Valves I 41) t u ■ I 2 9/16" 10M Swaco ' ' 3 1/8" 5M Manually Hydraulically Operated Adjustable Choke Choke ,, From BOP Stack b 1 .". I I. or: ,iti .. a • pX3 JAN 'QAHI � - 1" • i • i •-- / * 4 o 1 g ! Z a E a 2 • v 141 w Q �, L • r) C x .y-- _. - ----. h W 0 a CI `..... in •• bi 4 a +. • �...^.. & In x 14 • Li-F. Q & ' 1_, so rte• iw � _ • • I CO b I I 1 I 1 i13 )4vHS Xi 11 A 1 I 213 HS AM 11 C,? il i , L 54 _I I II 1 • SELF- CERTIFICATION STATEMENT FROM LESSEE /OPERATOR SURFACE OWNER IDENTIFICATION Federal or Indian Lease No. ADL 22330 (Surface) I hereby certify to the Authorized Officer of the Bureau of Land Management that I have reached one of the following agreements with the Surface Owner; or after failure of my good -faith effort to come to an agreement of any kind with the Surface Owner, have provided a bond and will provide evidence of service of such bond to the Surface Owner: 1) X I have a signed access agreement to enter the leased lands; 2) I have a signed waiver from the surface owner; 3) _ I have entered into an agreement regarding compensation to the • surface owner for damages for loss of crops and tangible improvements. 4) because I have been unable to reach either 1), 2), or 3) with the surface owner, I have obtained a bond to cover loss of crops and damages to tangible improvements and served the surface owner with a copy of the bond. Surface owner information: (if available after diligent effort) Surface Owner Name: Cook Inlet Region, Inc, Surface Owner Address: P.O. Box 93330, Anchorage, AK 99509 -3330 Surface Owner Phone Number: (907) 274 -8638 Signed this ail sr day of 2008. Robert A. Province Marathon Oil Company . 1 (Surface Owner) accept X do not accept _ the lessee or operators Surface Owner Agreement under 1, 2, or 3 above. Signed this day of fr - aorcif/i 2008. (Snature of Surface Ow er Ilan agreement has been reached) Attachment 1 -1 TOPO! *printed on 01/17/08 from "KBU 41 -18x" 151 °17.000' W 151 °15.000' W 151 °13.000' W 151 °11,000' W WGS84 151 °09.000' W A 99 t ,Y ^rv t�` F l a, " '°`• � ' � / may LO 3 �; 1 9 i — - . „„' aa'.+M ...° 4 .' ' i. ate. `- M I s - v. tl y * .. ;It_ ,�4 „mt ms s. 4, ■ ,, ry rn } i O tD i,: g t __`"s %c) pipeline — 1 Cis .=* . V81 ' ;asp � � 1 �� . N r , ; ' 1 i Pad �8 -tU i — =san, +J • t k I • . R I •; ,, o �,, _ o ° KaMornskg Beach Road i C ° o Ynu>tr Road t ` ''*'. of 4: ry 32 / Pad 34-31 (Marathon Office) pa 4; - 3a I , ,. .'' ? LAW/in • ,-) a 1 s wgais ' _ — — -- ` t • s • . e deoFmk,. l �7�T Z .: a i . i. ,.. _• } : , 1V IF _&I GAS HELD t O O 1 ey O 00 N 1 � , N 6 i " .. 4 .X • , ,a at et a � 2 P co r F • s Fad 14-6 a s95 ill -- 1 II Pad 4 -4 (Inactive) c pizv�te ,xd I pad 41 -7 w ar - - . , _ -. i - a _ I e r r o _s_ f $ yr c ice' I N i O I N °O r 1 4 fi v 0 trt I 7 ! 4: g Pad 41 -1$ (Project Location) ` 1 ti, z ' 1:3 -. 1- 17 ' it.)-4( r'., • % 14 z O 1 } J ° .. a . , c'- . r nl 3 - ° ,.. Gas Weil ° ,G �.. .• o f Pad 44 - 19 (xbandol ded) I 4 f : jj 2 2 ' # . ' _ ,, a , a _ i• { - �a -4' ♦ - .. -.fir y 74 - i 9 ,ryL -_ _ === •� . I { 2 t - 1 S_ 4. ■ 6 ( f Map c i h T10 (V4) ©2006_ National Geographic • • i 1 a mo w . _ " C 151 °17.000' W 151 °15.000' W 151 °13.000' W 151 °11.000' W WGS84 151 °09.000' W TN MN N NATIONAL /�/��►� ��A1 IOt AL ■ ■ 0.0 0.5 1.0 1.5 miles - 19° GEOGRAPHIC I III ' I I I II I III I' i lit 1 i 0.0 0.5 1.0 1.5 2.0 2.5 km 01/17/08 7 7 , ,, -..\,.,... KBU 1 -, �: KBU 41 -6X3 �� X 3,6 -si KB g + 5 KB. 12 -5 7�9 ` BU 12 -5 5 , . 3 • -5. 5 %i KB '4 -6RD ® s• � 3 JJJ U 24 -6RD • KBU 41 -18X prop. location KBU 14-6Y ® �. �� • KBU 14 -6Y 2 0 2008 location • , KBU 34 -6 ',' + • M -L Beluga/U Tyonek producers • �N `* K` 316 Sub - optimal fracs 11 -7_ K 18Y + B u 3 1 7R� KBU 42-A ® KB :v ° � • M -L Bel /U Tyonek SI location - / Bu 17 • 2009 DW location • KB 5979 KBU 42-7X I ® + • Resource locations (eW) 4. $448 • KBU 42 -7X -6022 111 a 5979 K' 43 -7X • + + + - � KBU 43 -7X i6 K KBU 14 -8 I KBU 14 8 5967 BU 41 -18X V KBU 41 18X , 0 T • • • • =5ott ,.....) 4 N a 0.25 mi Top of Lower Beluga Structure Map Top of Upper Tyonek Structure Map Kenai Gas Field, AK Kenai Gas Field, AK M MARATHON Oil Company OA MI Location: Cook Inlet, Alaska (Kenai Penninsula) Slot: Sfot #KBU41 - ¶8X UG$Ei Field: Kenai Gas Field (NAD83) Well KBU41 -18X MARATHON HON Facility: Pad #41-18 Wellbore: KBU41 -18X I`l'TEQ Plot reference wellpath is KBU41 -18X Version #3 True vertical depths are referenced to Glacier #1 (RKB) Grid System: NAD83 / TM Alaska State Plane, Zone 4 (5004), US feet Measured depths are referenced to Glacier #1 (RKB) North Reference: True north Glacier #1 (RKB) to Mean Sea Level: 88 feet Scale: True distance Mean Sea Level to Mud line (Facility: Pad #41 -18): 0 feet Depths are in feet Coordinates are in feet referenced to Slot Created by: jonethoh on 13- Feb -08 Location Information Facility Name Grid East (USft) Grid North (USft) Latitude Longitude • Pad #41 -18 1415847.040 2356482.790 60 °26'40.256 "N 151°14'36.875"W Slot Local N (ft) Local E (ft) Grid East (USft) Grid North (USft) Latitude Longitude Slot #KBU41 -18X - 446.84 - 538.58 1415300.140 2356046.220 60 °26'35.855 "N 151°14'47.610"W Glacier #1 (RKB) to Mud line (Facility: Pad #41 -18) 88ft Mean Sea Level to Mud line (Facility: Pad #41 -18) Oft Glacier #1 (RKB) to Mean Sea Level 88ft Targets Name MD (ft) TVD (ft) Local N (ft) Local E (ft) Grid East (USft) Grid North (USft) Latitude Longitude KBU41 -18X Lower Beluga Converted 22-Jan-08 6202.62 6113.00 556.87 - 494.60 1414816.19 2356612.32 60 °26'41.339 "N 151°14'57.469"W KBU41 -18X Tyonek Converted 22-Jan-08 7327.62 7238.00 556.87 - 494.60 1414816.19 2356612.32 60 °26'41.339 "N 151 °14'57.469 "W KBU41 -18XTD Revised 13- Feb -08 8797.62 8708.00 556.87 - 494.60 1414816.19 2356612.32 60 °26'41.339 "N 151 °14'57.469 "W Well Profile Data Design Comment MD (ft) Inc ( °) Az ( °) TVD (ft) Local N (ft) Local E (ft) DLS ( °/100ft) VS (ft) RKB 88' 0.00 0.000 318.389 0.00 0.00 0.00 0.00 0.00 KOP 2500.00 0.000 318.389 2500.00 0.00 0.00 0.00 0.00 End of Build 3267.91 15.358 318.389 3258.75 76.49 -67.94 2.00 102.31 Begin Angle Drop 5178.73 15.358 318.389 5101.33 454.88 - 404.01 0.00 608.39 EOD / Lower Beluga 6202.62 0.000 318.389 6113.00 556.87 - 494.60 1.50 744.80 Tyonek 7327.62 0.000 318.389 7238.00 556.87 - 494.60 0.00 744.80 Revised TD 8797.62 0.000 318.389 8708.00 556.87 - 494.60 0.00 744.80 URI k MAtATHON Oil Compan ? Location: Cook Inlet, Alaska (Kenai Penninsula) Slot: Slot #KBU41.18X Field: Kenai Gas Field (NAD83) Well KBU41 -18X I k: MARATHON Facility: Pad #41 -18 Wellbore: KBU41 -18X rs �/ Scale inch =150h Easting (ft) -675 -600 -525 -450 -375 -300 -225 -150 -75 0 75 -600 1 1 1 1 1 1 1 1 1 1 6 MI — 750 1 MI M 1 0 ' ' KB 88' . — 675 600 TD - 3 1/2"n Casing Production :Iii); , — 600 C, °; KBU41 -18X TD Revised 13- Feb -08 j+ BU41 -18X Tyonek Converted 22- Jan -08 1200 KBU41 -18X Lower Beluga Converted 22- Jan -08 — 525 13 3/8 Casing Surface 9 5/8" Casing Intermediate 1800 450 2400 KOP — 375 2.00 ° /100ft 1 3000 , - 300 End of Build 3600 — 225 U 4200 ] — 150 6 J > 4800 . D 3 75 Begin Angle Drop 5400 9 5/8" Casing Intermediate — 0 1.50 ° /100ft Slot #KBU41 - 18X 6000 KBU41 -18X Lower Beluga EOD / Lower Beluga 6600 7200 KBU41 -18X Tyone Tyonek Tyonek 72-8 Tyonek 73 -1 Tyonek 75-8 Tyonek 76 -7 7800 Tyonek78 -2 Tyonek 80 Coal 8400 Tyonek 84 -6 Tyonek 86 -2 Tyonek 84 -6 Coal TD - 3 1/2" Casing Production BU41 -18X TD Revised 13- Feb -08 w c 9000 CO X . 9600 Plot reference wellpath Is KBU41 -18X Version #3 -600 0 600 1200 True vertical depths are referenced to Glacier #1 (RKB) Grid System: NAD83 / TM Alaska State Plane, Zone 4 (5004), US feet Vertical Section (ft)s°nie 1 nd1 =1200 n Measured depths are referenced to Glacier #1 (RKB) North Reference: True north Azimuth 31839° with reference 0.00 N, 0.00 E Glacier #1 (RKB) to Mean Sea Level: 88 feet Scale: True distance Mean Sea Level to Mud tine (Facility: Pad #41 -18): 0 feet Depths are in feet Coordinates are in feet referenced to Slot Created by: jonethoh on 13- Feb -08 I. ■ Planned Wellpath Geographic Report , Report Gene rated 13- Feb-08 at 08:53:11 Projection System _ - NAD83 / TM Alaska State Plane, Zone 4 (5004), US feet Operator MARATHON Oil Company North Reference ' True Area Cook Inlet, Alaska (Kenai Penninsula) Scale - - - - .0.999958 Field Kenai Gas Field (NAD83) - Horizontal Reference Point ° Facility Pad #41 -18 Vertical Reference Point - - Slot Slot #KBU41 -18X MD Reference Point Glacier #1 (RKB) Well KBU41 -18X Field Vertical Reference Mean Sea Level Welibore KBU41 -18X Glacier #1 (RKB) to Facility Vertical Datum 88.00 ft Wellpath KBU41 -18X Version #3 Glacier ier #1 (RKB) to o Mean n Sea Level 88.00 ft - i -- - - - -- - - (F Wellbore Last Revised 10/09/2007 Facility Vertical Datum to Mud Line (Facility) 0.00 ft Sidetrack from (none) Section Origin X E 0.00 ft User Jonethoh Section Origin Y N 0.00 ft Calculation method Minimum curvature Section Azimuth g Local North Local East Grid East Grid North Latitude Longitude [ft] [ft] [USft] [USft] _._.. Slot Location - 446.84 1415300.14 2356046.22 60 °26'35.855 "N 151°14'47.610N Facility Reference Pt 1415847.04 2356482.79 60 °26'40.256"N 151 °14'36.875 "W Field Reference Pt 1410937.15 =MEMECEEIMIN 60 °27'31.931 "N 151 °16'16.783 "W *NAD 83 coordinates are converted to NAD 27 using Corpscon 6.0.1 (US Army Corps of Engineers) TVD from Grid Grid _._.. _ __ -. ---____._....- ---- MD Inclination Azimuth TVD Fld Ref North East Grid East Grid North Eas NAD27 North NAD27 Latitude Longitude DLS Toolface Build Rate Turn Rate Vert Sect Comments [ft] [1 [1 [ft] [ft] [ft] [ft] [ft] [51 ®® _ [ %100ft]_ [ °]_.. [ °i100ft]_ [ °I100ft]._ (ft] _- - - --- 0.00 0.00 MM. 0.00 -88.00 0.00 0.00 1415300.14 2356046.22 MUMMA 2356284.892 60 °26'35.855 "N 151 °14'47.610 "W 0.00 0.00 0.00 0.00 0.00 100.00 0.00 MIME 100. MEM= 0.00 0.00 1415300.14 2356046.22 MIEMEME9=1 60 °26'35.855 "N 151 °14'47.610 "W 0.00 0.00 0.00 0.00 0.00 200.00 0.00 MEE. 200.00 MM. 0.00 0.00 1415300.14 2356046.22 Emma 2356284.892 60 °26'35.855 "N 151 °14'47.610 "W 0.00 0.00 0.00 0.00 0.00 300.00 0.00 MIME 300.00 MEM 0.00 0.00 1415300.14 2356046.22 EFEEEEMEET=1 60 °26'35.855 "N 151°14'47.610"W 0.00 0.00 0.00 0.00 0.00 MIIMMIIMMEMIE 400.00 0.00 MN. 400.00 NEFEJE 0.00 0.00 1415300.14 2356046.22 IIEMEME 2356284.892 60 °26'35.855 "N 151 °14'47.610 "W 0.00 0.00 0.00 0.00 0.00 500.00 0.00 MOM 500.00 412.00 0.00 0.00 1415300.14 2356046.22 2356284.892 60 °26'35.855 "N 151 °14'47.610 "W 0.00 0.00 0.00 0.00 0.00 600.00 0.00 MM. 600.00 111EUM 0.00 0.00 1415300.14 2356046.22 II=EZEIESE=1 60 °26'35.855 "N 151 °14'47.610"W 0.00 0.00 0.00 0.00 0.00 IMMIIIIMINIMIN 700.00 0.00 =MEM 700.00 612.00 0.00 0.00 1415300.14 2356046.22 EMMEN 2356284.892 60 °26'35.855 "N 151 °14'47.610 "W 0.00 0.00 0.00 0.00 0.00 800.00 0.00 MIME 800.00 MEM 0.00 0.00 1415300.14 2356046.22 2356284.892 60 ° 26'35.855 "N 151°14'47.610"W 0.00 0.00 0.00 0.00 0.00 IMMIIMIllil 900.00 0.00 nom 900.00 812.00 0.00 0.00 1415300.14 2356046.22 Egmizei 2356284.892 60 °26'35.855 "N 151 °14'47.610 "W 0.00 0.00 0.00 0.00 0.00 1000.00 0.00 MM. 1000.00 912.00 0.00 0.00 1415300.14 2356046.22 Efil=1 2356284.892 60 °26'35.855 "N 151 °14'47.610 "W 0.00 0.00 0.00 0.00 0.00 1100.00 0.00 MIME 1100.00 1012.00 0.00 0.00 1415300.14 2356046.22 MEGMEMS 2356284.892 60 °26'35.855 "N 151 °14'47.610 "W 0.00 0.00 0.00 0.00 0.00 IIMII 1200.00 0.00 MEM. 1200.00 MIME 0.00 0.00 1415300.14 2356046.22 IIMEEIMIEEE=91 60 °26'35.855 "N 151 °14'47.610 "W 0.00 0.00 0.00 0.00 0.00 1300.00 0.00 MIME 1300.00 MM. 0.00 0.00 1415300.14 2356046.22 KEEMZSI 2356284.892 60 °26'35.855 "N ESEMZEI 0.00 0.00 0.00 0.00 0.00 MIMMIIIIIMIll 1400.00 0.00 MM. 1400.00 Ely3lECM 0.00 0.00 1415300.14 2356046.22 IllEaffinal 2356284.892 60 °26'35.855 "N 151 °14'47.610 "W 0.00 0.00 0.00 0.00 0.00 1500.00 0.00 mum 1500.00 1111MEN 0.00 0.00 1415300.14 2356046.22 MILMEEM 2356284.892 60 ° 26'35.855 "N 151 ° 14'47.610 "W 0.00 0.00 0.00 0.00 0.00 MIIIIIIIIIIIII 1600.00 0.00 MOM 1600.00 MEM 0.00 0.00 1415300.14 2356046.22 111EMMEEMEM=11 60 °26'35.855 "N 151 °14'47.610"W 0.00 0.00 0.00 0.00 0.00 MOMMIIMIN 1700.00 0.00 mom 1700.00 1612.00 0.00 0.00 1415300.14 2356046.22 1116=tal 2356284.892 60 ° 26'35.855 "N 151 °14'47.610 "W 0.00 0.00 0.00 0.00 0.00 1800.00 0.00 mum 1800.00 MEM. 0.00 0.00 1415300.14 2356046.22 11=2I 2356284.892 60 °26'35.855 "N 151 ° 14'47.610 "W 0.00 0.00 0.00 0.00 0.00 1900.00 0.00 =um 1900.00 1812.00 0.00 0.00 1415300.14 2356046.22 MEE1=1 2356284.892 60 °26'35.855 "N 151 °14'47.610 "W 0.00 0.00 0.00 0.00 0.00 2000.00 0.00 mum 2000.00 1912.00 0.00 0.00 1415300.14 2356046.22 NM= 2356284.892 60 °26'35.855 "N 151 °14'47.610 "W 0.00 0.00 0.00 0.00 0.00 IMIIMMIMIMI 2100.00 0.00 MOM 2100.00 2012.00 0.00 0.00 1415300.14 2356046.22 60 °26'35.855 "N 151 °14'47.610 "W 0.00 0.00 0.00 0.00 0.00 2200.00 0.00 EMI. 2200.00 MIME 0.00 0.00 1415300.14 2356046.22 IBESEESE 2356284.892 60 °26'35.855 "N 151 °14'47.610 "W 0.00 0.00 0.00 0.00 0.00 IMIMINIMMIIIII 2300.00 0.00 MM. 2300.00 MM. 0.00 0.00 1415300.14 2356046.22 2356284.892 60 ° 26'35.855 "N 151 ° 14'47.610 "W 0.00 0.00 0.00 0.00 0.00 2400.00 0.00 MM. 2400.00 WM. 0.00 0.00 1415300.14 2356046.22 Erdamm 2356284.892 60 °26'35.855 "N 151 °14'47.610 "W 0.00 0.00 0.00 0.00 0.00 2500.00 0.00 WHIM 2500.00 2412.00 0.00 0.00 1415300.14 2356046.22 WEEElal 2356284.892 60 °26'35.855 "N 151 °14'47.610"W 0.00 Milan 0.00 0.00 0.00 2600.00 MEMIMIEIDEM 2599.98 IMMEEMMIEEMINEEMI 1415299.01 2356047.55 SEETLEME=En 60 °26'35.868 "N 151 °14'47.633 "W MEM 0.00 min 0.00 maimmEmmimin 2700.00 4.00 mom 2699.84 2611.84 11113MMUMI 1415295.61 EMEMENESMIMI 2356290.192 60 °26'35.907 "N 151°14'47.702"W MEM 0.00 ElliEM 0.00 6 111111MMOMINIK 2800.00 6.00 MX. 2799.45 ®EnzE. 1415289.94 2356058.15 Emma 2356296.822 60 ° 26'35.971 "N 151 ° 14'47.818 "W =CM 0.00 MEM 0.00 _ imizmob 2900.00 8.00 �� 2898.70 2810.70 1415282.02 2356067.41 =CM rr 2356306.083 60 °26'36.060 "N 151 °14'47.979 "W 0.00 0.00 3000.00 10.00 MEMEMEEMIl 2909.47 MEM -28.90 1415271.86 2356079.30 womianEmMES3 60 °26'36.176 "N 151°14'48.186"W MEM 0.00 MEM 0.00 3100.00 1111611,111111Marn 3095.62 3007.62 46.81 MM. 1415259.46 2356093.80 EfiMMEMEEMSCH 60 °26'36.316 "N 151 ° 14'48.439 "W IMEM 0.00 Ma. 0.00 62.60 3200.00 14.00 MEM. 3193.06 3105.06 nommeas 1415244.85 2356110.90 275224.665 2356349.573 60 °26'36.482 "N 151 °14'48.736 "W MEM 0.00 MOM 0.00 0[s wipammemursiamilimummum 76.49 -67.94 MEIMMEM 2356123.98 WO= 2356362.653 60 °26'36.608 "N 151 °14'48.964 "W =CM 0.00 MEM 0.00 magammimmimiim 3300.00 MIEMMIEEM 3289.69 3201.69 11113MINEEMMUMODI 2356130.44 Et3=11 2356369.113 60 °26'36.671 "N 151 °14'49.077 "W 0.00 0.00 0.00 0.00 110.80 3400.00 MEIEIMINCEEMMELIMMINOMEM 1415210.93 1113=5/®" ' 2356389.243 60 °26'36.866 "N 151 °14'49.42T'W 0.00 0.00 0.00 0.00 3500.00 *MEEINJME0!4.EMEEKIN - 108.76 MEMEEKE 2356170.70 EREIMB 2356409.373 60 °26'37.061 "N 151 °14'49.778 "W 0.00 0.00 0.00 0.00 3600.00 MEEMMIEEZE 3578.98 3490.98 MOSEREMEMEINEEEMEM 2356190.83 EXEMEEM 2356429.503 60 °26'37.256 "N 151 °14'50.128 "W 0.00 0.00 0.00 0.00 190.26 MIIIMMINIMMI 3700.00 MalimmimmElmommagonimmilsoninaggagl 2356210.96 EMMEN 2356449.633 60 °26'37.451 "N 151 °14'50.479"W 0.00 0.00 0.00 0.00 IMEZEMEMEIMEIMIll 3800.00 NEEEIEEIEEEEIIEEE". 3683.84 181.86 IIESEI®' i 2356231.09 MOZEIEBI 2356469.763 60 ° 26'37.646 "N 151 ° 14'50.829 "W 0.00 0.00 0.00 0.00 IIMEMIIIIIIIIIIIM 3900.00 Milagmminim 3868.26 3780.26 201.66 EMIR 1415124.89 MEEZEMINUMMEM 2356489.894 60 °26'37.841 "N 151 °14'51.180 "W 0.00 0.00 0.00 0.00 MIZE9EMMMIEEMMIDEMI 3938.00 3850.00 MENEEMEME 1415112.44 2356265.78 '® 4 " 60 °26'37.982 "N EMI 0.00 0.00 0.00 0.00 288.87 EEMIET 4000.00 MMINIMMICE 3964.69 3876.69 MM. - 196.70 1415107.68 EMMA 275087.492 2356510.034 60 °26'38.036 "N EIEMEMECO 0.00 0.00 0.00 0.00 296.20 4100.00 minagmminEm 4061.12 MICHEENZIEMZEMEZ 1415090.47 2356291.49 275070.282 2356530.164 60 °26'38.231 "N 151 °14'51.881 "W 0.00 0.00 0.00 0.00 MESIMIIIMIEMMIMIMMI 4200.00 11.0011M 4069.55 IIEMEMIEMEM 1415073.26 WEEMMIEECIZEM 2356550.294 60 °26'38.426 "N Eamomo 0.00 0.00 0.00 0.00 IMENEMIIIIIIIIIM 4300.00 MEMINIEBEEM 4253.98 4165.98 280.87 - 249.46 1415056.05 MEMEIMEECEEMZEIEE=1 60 °26'38.621 "N EMMEEMI 0.00 0.00 0.00 0.00 IMMEEMMINIMMINIM 4400.00 MIEMIERMEMEIEME 4262.41 300.67 MEMEEM 1415038.84 2356351.88 Kfil=an 2356590.554 60 ° 26'38.816 "N 1116=1 0.00 0.00 0.00 0.00 402.14 4500.00 MEEEIMMEIMIE 4446.84 4358.84 MM. - 284.64 EZI=EMEEMIIII=. 2356610.684 60 °26'39.011 "N KEEZEMEI 0.00 100 0.00 0.00 428.63 IIIMIIMMIIII 4600.00 i *i 1415004.42 2356392.14 Ng313EIR 2356630.814 60 °26'39.206 "N 151 °14'53.634 "W 0.00 0.00 0.00 0.00 MIELMEIMMINIMMIIM 4700.00 IMEEMMEICEEIM 4639.70 MM. 360.08 EMIR 1414987.21 MEMIEfi. 274967.021 2356650.944 60 °26'39.401 "N 151 °14'53.985 "W 0.00 0.00 0.00 0.00 481.60 MINIIIIMIEll 4800.00 IMEMIMIEBICEMMEEM 4648.12 379.88 EMI 1414970.00 smEEEEN 274949.81 2356671.075 60 °26'39.596 "N IIMEMEEMI 0.00 0.00 0.00 0.00 508.08 4807.13 MEEEMMIEEMI 4743.00 4655.00 EggEEE - 338.66 1414968.78 2356433.84 274948.59 60 ° 26'39.610"N 151 °14'54.360 "W 0.00 0.00 0.00 0.00 509.97 4900.00 =gm 318.39 MIMI 4744.55 399.68 - 354.99 1414952.79 IIEMIZEMESEEMI 2356691.205 60 °26'39.791 "N 151 °14'54.686"W 0.00 0.00 0.00 0.00 MEMIIIIIMMINIIMMI Planned Wellpath Geo • raphic Report , Report Generated 13- Feb -08 at 08:53:11 Projection System NAD83 / TM Alaska State Plane, Zone 4 (5004), US feet Operator MARATHON Oil Company North Reference True � Area Cook Inlet, Alaska (Kenai Peninsula) Scale 0.999958 Field Kenai Gas Field (NAD83) Horizontal Reference Point Slot Facility Pad #41 -18 Vertical Reference Point IME115 Slot Slot #KBU41 -18X MO Reference Point - - Well KBU41 -18X Field Vertical Reference _ -- Mean Sea Level Wellbore KBU41 -18X Glacier #t (RKB) to Facility Vertical Datum 88.00 ft '. Wellpath KBU41 -18X Version #3 Glacier #1 (RKB) to Mean Sea Level 88.00 ft Line Wellbore Last Revised 10/09/2007 Facility y Vertical Datum to Mud Line (Facilitciit y) 0.00 ft Sidetrack from (none) Section Origin X E 0.00 ft User Jonethoh Section Origin Y N 0.00 ft Calculation method Minimum curvature Section Azimuth 318.39° Local North Local East Grid East Grid North Latitude Longitude [ft] [ft] [USft] [USft] Slot Location EMMIIIMMIERSEE 1415300.14 2356046.22 60 ° 26'35.855 "N 151 °14'47.610 "W Facility Reference Pt ' 1 1415847.04 IIIIMEEEME 60 °26'40.256 "N 151°14'36.875"W Field Reference Pt 1410937.15 111031 60 °27'31.931 "N 151 °16'16.783 "W * NAD _ . 0.1 Al TVD from Grid Grid --- MD inclination Azimuth TVD Fld Ref North East Grid East Grid North East NAD27 North NAD27 Latitude Longitude DLS Toolface Budd Rate Turn Rate Vert Sect Comments [ft] [°] [1 [ft] [ft] [ft] [ft] [ft] [ ®® - [° /100ft] [°] - -... [°f100ft] _.. [° /100ft] [ft] _.._ ___...... 5000.00 MIEEDIUMIEM 4928.98 4840.98 419.49 MEM. 1414935.58 2356472.66 MEGEMZEMEMMI 60 ° 26'39.986 "N 151 °1455.036 "W 0.00 0.00 0.00 0.00 561.06 5100.00 IIIIINEMMECIENIKEZIE 4937.41 439.29 Emag 1414918.37 2356492.79 274898.18 EMS= 60 °26'40.181 "N EalniMairj 0.00 0.00 0.00 0.00 MEMIMMIMINIME 5252 ® �� 5033.86 459.05 404.01 1414904.83 2356508.64 274884.64 60 ° 26'40.335 "N 151 °14'55.663 "W 0.00 180.00 0.00 0.00 608.39 1414901.20 2356512.88 274881.009 5=331 60 °26'40.376 "N EMIEMESU®i 180.00 MOON 0.00 5300.00 �� 1414885.17 2356531.64 274864.979 60 °26'40.558 "N 151 °14'56.063 "W - 180.00 0.00 63® MIIIIIIIIMIMI 5400.00 ®" aCEIMINEEEMEEIMEM 494.05 - 438.81 1414870.78 2356548.47 1155=MIE12=111 60 °26'40.721 "N 151 °14'56.356 "W MEM 180.00 =am 0. 00 660.79 MIMI 10.64 MIME 5408.00 5320.00 507.80®' 1414858.83 2356562.44 274838.639 Eg2=2 60 °26'40.856 "N 151 ° 1456.600 "W ME= 180.00 MEM 0.00 679.18 Middle Belu•a 5500.00 MIMMINIEMEMEEMEREMEIN 508.69 - 451.80 1414858.06 IIMBM 274837.669 2356802.025 60 °26'40.865 "N 151 °14'56.616 "W mg= 180.00 MEM 0.00 680.36 MIIIMIIIMMN 5600.00 9.04 INEEMEMEMECE 5424.88 WEIDEMEMEN 1414847.02 imam 274826.829 2356814.945 60 ° 26'40.990 "N 151 °14'56.841 "W MEM 180.00 MEM 0.00 697.36 5700.00 EMEMBEIMMEMEICEMEMEMMEEKREEM 1414837.65 MEEMEMEEMECE 2356825.905 60 °26'41.096 "N EZEEMITEIMEM 180.00 MEIN 0.00 lignmin 5800.00 6.04 ®EMEEMIEME - 480.52 1414829.97 2356596.21 274809.778 2356834.885 60 ° 26'41.183 "N 151 °14'57.188"W MEM 180.00 MEM 0.00 5900.00 INEEMMIEEM 5810.70 ®' - 486.64 1414823.98 2356603.22 60 °26'41.251"N laalilEMIZEIMEIN 180.00 MEM 0.00 6000.00 INEEmniam 5910.48 5822.48 ROM - 491.03 1414819.68 2356608.24 274799.488 2356846.915 60 ° 26'41.300"N IIHEEMMMEEM 180.00 =Ern 0.00 6100.00 IME=MIKIEM 6010.39 WEEIEMEMIIM - 493.68 1414817.09 2356611.28 274796.898 2356849.955 60 °26'41.329 "N 151 °14'57.450 "W =En 180.00 MEM 0.00 6200.00 0.04 6110.38 6022.38 -494.60 1414816.19 274795.998 2356850.995 60 °26'41.339 "N 151 °14'57.469 "W 180.00 0.00 744.80 6202.62 0.00 max. 6113.00 6025.00 WOM -494.60 1414816.19 WEE=1 274795.998 2356850.995 60 °26'41.339 "N 151 °14'57.469"W MEM 0.00 MEM 0.00 744.80 MIENIMMIIIIII 6300.00 0.00 MM. 6210.38 wimmEEEEEN -494.60 1414816.19 MEE=E1 274795.998 2356850.995 60 °26'41.339 "N 151 °14'57.469 "W 0.00 0.00 0.00 0.00 744.80 6400.00 0.00 =ME 6310.38 EiggEmmigi -494.60 1414816.19 II=BEEM 274795.998 2356850.995 60 °26'41.339 "N 151 °14'57.469 "W 0.00 0.00 0.00 0.00 744.80 6500.00 0.00 =gam 6410.38 MICHEMEZIDM -494.60 1414816.19 274795.998 2356850.995 60 °26'41.339 "N 151 °14'57.469 "W 0.00 0.00 0.00 0.00 744.80 6600.00 0.00 MIBEEM 6510.38 EMMIZENIIIIMEll -494.60 1414816.19 274795.998 2356850.995 60 ° 26'41.339 "N 151 °14'57.469 "W 0.00 0.00 0.00 0.00 744.80 6700.00 0.00 mom 6610.38 KOKIIMErfill -494.60 1414816.19 IEREMEM 274795.998 2356850.995 60 °26'41.339 "N 151 °14'57.469 "W 0.00 0.00 0.00 0.00 744.80 6800.00 0.00 =ME 6710.38 6622.38 MOM 494.60 1414816.19 EMMEN 274795.998 2356850.995 60 °26'41.339 "N 151 °1457.469 "W 0.00 0.00 0.00 0.00 744.80 6900.00 0.00 MIME 6810.38 6722.38 mum -494.60 1414816.19 IMMEIEM 274795.998 2356850.995 60 °26'41.339 "N 151 °14'57.469 "W 0.00 0.00 0.00 0.00 744.80 7000.00 0.00 MM. 6910.38 6822.38 ME= -494.60 1414816.19 MEEMBM. 274795.998 2356850.995 60 °26'41.339 "N 151 °14'57.469 "W 0.00 0.00 0.00 0.00 744.80 7100.00 0.00 7010.38 6922.38 494.60 1414816.19 274795.998 2356850.995 60 °26'41.339 "N 151 °14'57.469 "W 0.00 0.00 0.00 0.00 77 7200.00 0.00 �� 494.60 1414816.19 274795.998 2356850.995 60 °26'41.339 "N 151 °14'57.469 "W 0.00 0.00 0.00 0.00 7300.00 0.00 �� 494.60 1414816.19 274795.998 2356850.995 60 ° 26'41.339 "N 151 °14'57.469 "W 0.00 0.00 0.00 0.00 0.00 7238.00 7150.00 494.60 1414816.19 274795.998 2356850.995 60 °26'41.339 "N 151 °14'57.469 "W 0.00 0.00 0.00 0.00 MEM 0.00 7281.00 7193.00 494.60 1414816.19 274795.998 2356850.995 60 °26'41.339 "N 151 °14'57.469 "W 0.00 0.00 0.00 0.00 7400.00 0.00 MEMEMMIOXIMMOIMEMIN 494.60 1414816.19 WEEMEM 274795.998 2356850.995 60 °26'41.339 "N 151 °14'57.469 "W 0.00 0.00 0.00 0.00 744.80 7404.62 0.00 MIIIIMEMZEMMEIMMIIMIEM -494.60 1414816.19 EMMEN 274795.998 2356850.995 60 ° 26'41.339 "N 151 °14'57.469'W 0.00 0.00 0.00 0.00 744.80 7500.00 0.00 IMEZEM 7410.38 Illrn -494.60 1414816.19 ILIMEEEM 274795.998 2356850.995 60 °26'41.339 "N 151 ° 14'57.469 "W 0.00 0.00 0.00 0.00 744.80 7600.00 0.00 ManilillignMIKEEMEEIME -494.60 1414816.19 WEEtraMil 274795.998 2356850.995 60 °26'41.339 "N 151 °14'57.469 "W 0.00 0.00 0.00 0.00 744.80 7646.62 0.00 IMIEMEMEMIll 7469.00 NEM -494.60 1414816.19 IBEMEEMI 274795.998 2356850.995 60 ° 26'41.339 "N 151 °14'57.469 "W 0.00 0.00 0.00 0.00 744.80 BEENI 7700.00 0.00 MIME 7610.38 mgommifill -494.60 1414816.19 IFEEMEEM 274795.998 2356850.995 60 °26'41.339 "N 151 ° 14'57.469 "W 0.00 0.00 0.00 0.00 744.80 MUM 0.00 mom 7670.00 7582.00 MUM -494.60 1414816.19 IMMEIES 274795.998 2356850.995 60 °26'41.339 "N 151 °1457.469 "W 0.00 0.00 0.00 0.00 744.80 - 7800.00 0.00 IMEEEMINEIDOIMEMEEMIE -494.60 1414816.19 EMMEN 274795.998 2356850.995 60 °26'41.339 "N 151 ° 1457.469 "W 0.00 0.00 0.00 0.00 744.80 EIMIEMMEIMI 7900.00 0.00 mom 7810.38 EMIEERIEMEEM -494.60 1414816.19 MEEMBEE 274795.998 2356850.995 60 ° 26'41.339 "N 151 °1457.469 "W 0.00 0.00 0.00 0.00 744.80 0.00 MOE= 7842.00 7754.00 MOM .494.60 1414816.19 MEMMEM 274795.998 2356850.995 60 °26'41.339 "N 151 °14'57.469 "W 0.00 0.00 0.00 0.00 744.80 ICEMEMMIll= 8000.00 0.00 =um 7910.38 -494.60 1414816.19 ME=IIIEM 274795.998 2356850.995 60 ° 26'41.339 "N 151 °14'57.469 "W 0.00 0.00 0.00 0.00 744.80 MIIIIIIIIII 8100.00 0.00 mom 8010.38 MEMEEKEtlia -494.60 1414816.19 MEMEEEM 274795.998 2356850.995 60 °26'41.339 "N 151 °14'57.469 "W 0.00 0.00 0.00 0.00 744.80 IIMIIIMMEIM 8163.62 - 0.00 MM. 8074.00 7986.00 MM. 494.60 1414816.19 MEM. 274795.998 2356850.995 60 °26'41.339 "N 151 °1457.469 "W 0.00 0.00 0.00 0.00 744.80 Tyonek 80 Coal 8200.00 0,00 MOM 8110.38 8022.38 NM= -494.60 1414816.19 MEEMIEM 274795.998 2356850.995 60 °26'41.339 "N 151 °1457.469 "W 0.00 0.00 0.00 0.00 744.80 8300.00 0,00 318.39 8210.38 -494.60 1414816.19 IMEEMEM 274795.998 2356850.995 60 °26'41.339 "N 151 °1457.469 "W 0.00 0.00 0.00 0.00 744.80 8400.00 0.00 =nem 8310.38 -494.60 1414816.19 ' 274795.998 2356850.995 60 °26'41.339 "N 151 °14'57.469 "W 0.00 0.00 0.00 0.00 744.80 8500.00 0.00 rte' 8410.38 -494.60 1414816.19 MEE=1 274795.998 2356850.995 60 °26'41.339 "N 151 °14'57.469 "W 0.00 0.00 0.00 0.00 744.80 8509.62 0.00 =IEEE 8420.00 8332.00 MM. 494.60 1414816.19 274795.998 2356850.995 60 °26'41.339 "N 151 °14'57.469 "W 0.00 0.00 0.00 0.00 744.80 T onek 84 -6 8600.00 0.00 =DM 8510.38 8422.38 MUM -494.60 1414816.19 INOMMEM 274795.998 2356850.995 60 °26'41.339 "N 151 °14'57.469 "W 0.00 0.00 0.00 0.00 744.80 IIMIIMIMIll 8681.62 0.00 MIME 8592.00 8504.00 REIM 494.60 1414816.19 IMEEMEM 274795.998 2356850.995 60 °26'41.339 "N 151 °14'57.469 "W 0.00 0.00 0.00 0.00 744.80 T onek 84 -6 Coal 8700.00 0.00 =um 8610.38 WEEEMEME -494.60 1414816.19 EMIEIEM 274795.998 2356850.995 60 °26'41.339 "N 151 °14'57.469 "W 0.00 0.00 0.00 0.00 744.80 8706.62 0.00 MEM 8617.00 8529.00 MEM 494.60 1414816.19 MEMEL 274795.998 2356850.995 60 °26'41.339 "N 151 ° 14'57.469 "W 0.00 0.00 0.00 0.00 744.80 T onek 86 -2 8797.62 0.00 minim 8708.00 8620.00 MZIEMI -494.60 1414816.19 MEEMEEM 274795.998 2356850.995 60 °26'41.339 "14 151 °14'57.469'W 0.00 0.00 0.00 0.00 744.80 MIMMIMINIM iiiiA Planned Wellpath Report BAKER KBU41 -18X Version #3 HUGHES MARATHON Page 1 of 7 INTEQ REFERENCE WELLPA TH IDENTIFICATION Operator MARATHON Oil Company Slot Slot #KBU41 -18X Area Cook Inlet, Alaska (Kenai Penninsula) KBU41 -18X `Field Kenai Gas Field (NAD83) Wellbore KBU41 -18X 1=10 Pad #41 -18 REPORT SETUP INFORMATION Projection System NAD83 / TM Alaska State Plane, Zone 4 (5004), US feet Software System WellArchitect® 2.0 North Reference Jonethoh 0.999958 Report Generated 13- Feb -08 at 07:38:09 Convergence at slot 1.08° West Database /Source file WA_Anchorage/KBU41- 18X.xml WELLPATH LOCATION E Local coordinates Grid coordinates Geographic coordinates North[ft] Easting[USft] Northing[USft] Latitude Longitude Slot Location - 446.84 - 538.58 1415300.14 2356046.22 60 °26'35.855 "N 151 °14'47.610 "W Facility Reference Pt 1111111111.111111 IIIIIIIIIIII 1415847.04 2356482.79 60 °26'40.256 "N 151 °14'36.875 "W Field Reference Pt IIIIIIIIIIIIIIMIIIIIIIIIIIIIIB 1410937.15 2361824.52 60°27'31.931"N 151°16'16.783"W , WELLPATH DATUM Calculation method Minimum curvature Glacier #1 (RKB) to Facility Vertical Datum 88.00ft ;Horizontal Reference Pt Slot Glacier #1 (RKB) to Mean Sea Level 88.00ft Vertical Reference Pt Glacier #1 (RKB) Facility Vertical Datum to Mud Line (Facility) 0.00ft MD Reference Pt Glacier #1 (RKB) Section Origin N 0.00, E 0.00 ft Field Vertical Reference Mean Sea Level Section Azimuth 318.39° Planned Wellpath Report BAKER KBU41 -18X Version #3 HUGHES MARATHON Page 2 of 7 INTEQ REFERENCE WELLPATH IDENTIFICATION�� Operator MARATHON Oil Compan Slot Slot #KBU41 -18X Area Cook Inlet, Alaska (Kenai Penninsula) Well KBU41 -18X Field Kenai Gas Field (NAD83) Wellbore KBU41 -18X . .Pad #41-18 � � � � ' t � � s 4 , m , 1; , . a "ItIt' s f� 3 9 � p °lat S MD Inclination Azimuth TVD North WE Gr East Grid North DLS Build Rate Turn Rate Comments ft 0 0 ft ft sry ft sry ft °/100ft °/100ft ° /100ft F 0.00 0.000 318.389 0.00 0.00 0.00 0.00 1415300.14 2356046.22 0.00 0.01. 0.00 RKB 88' 100.00 0.000 318.389 100.00 0.00 0.00 0.00 1415300.14 2356046.22 0.00 0.00 0.00 IIIIIIIIIIIIIIIII , 200.00 0.000 318.389 200.00 0.00 0.00 0.00 1415300.14 2356046.22 0.00 0.01 0.00 300.00 0.000 318.38' 300.00 0.00 0.00 0.00 1415300.14 2356046.22 0.00 0.01 0.00 - - I _.., i. l __ 1'.1A(l 9 1 1 � A x 500.00t 0 318.389 500.00 0.00 0.00 0.00 1415300.14 2356046.22 0.00 0.01 0.00 600 00 __.._ 0 .000 318 38' 600.00 * _._. _ 0 00 0.00 0.00 1415300.14 2356046.22 0.00 0.01' 0.00 0.00 1= 700.00 0.000 318.389 700.00 0.00 0.00 0.00 1415300.14 2356046.22 0.00 0.00 800.00 0.001 318.389 800.00 0.00 0.00 0.00 1415300.14 2356046.22 0.00 0.00 0.00 ry -_. - ,.. � :11 1 I r� I,1 ") i ud' v2 " ^,^, - 1 1" ^ +,1 ._a. z, A ': 1000.00 0.000 318.389 1100.00 0.000 318.389 1100.00 0.00I� 00.00 0.00 0.00 0.00 1415300.14 2356046.22 0.00 0.00 1200.0 01 0.000 318.389 1200.00 0.00 0.00 0.00 1415300.14 2356046.22 0.00 0.00 0.00 1300.00 0.000 318.389 1300.00 0.00 0.00 0.00 1415300.14 2356046.22 0.00 0.00 _ _ _ � � ; ! i. ��; 1 , , ¢ I I I Iat ., ._ , f , � ,pyr � _. � s u � �n 4 , : J� ,1tt t , 1 x 0.00 t t t _�3, . ,11 1 t f. I fi a 1500.00 0.000 318.389 1500.00 0.00 0.00 0.00 1415300.14 2356046.22 0.00 0.00. 0.00 1600.00 0.001 , 318.389 1600.00 0.00 0.00 0.00 1415300.14 2356046.22 0.00 0.00 0.00 1700.00 0.000 318.389 1700.00 0.00 0.00 0.00! 1415300.14 2356046.22 0.00 0.00'. 0.00 ' 1800.00 0.001 318.389 1800.00 0.00 0.00 0.00 1415300 14 2356046.22 0.00 0.00 0.00 2000.00 0.000 318.389 2000.00 0.00 0.00 0.00 1415300.14 2356046.22 0.00 0.01 0.00 2200.00 0.000 318.389 2200.00 0.00 0.00 0.00 . 1415300.14 2356046.22 0.00 0.00 0.00 I= a 2100.00 0.000 318.389 2100.00 0.00 0.00 0.00 1415300.14 2356046.22 0.00 0.00' 0.00 1 2300.00 0.000 318.389 2300.00 0.00 0.00 0.00 1415300.14 2356046.22 0.00 0.01' 0.00 , .�__ - -- - - _ ' " _ ,. .._. - _� - - .� .... 1 Ir 1 +111 , r 4,, " "J 1� �h ilit , �2..._ � �r. :3 2500.00' 0.000 318.38' 1 2500.00 0.00 0.00 0.00 1415300.14 2356046.22 0.00 0.00 0.00 ?KOP .11 1 2 000 _ 318.389 2599 98 1.30 -1.16 1415299.01 2356047.55 2.00 2.00 0.00 2700.001 4.001 318.389 2699.84 6.98 OWE -4.63 1415295.61 2356051.52 2.00 2.00 0.00 2800.001 6.001 318 389 2799 45 15 69 - .42 1415289 94 2356058.15 2.00 2.00 0.00 � 'q. .V�,.p4 M G { k ,i,' S F I , f " WR - '9 , k= r , ;; ., . y . "r . 3 . n ' '::. 1 w y.,. a. ... _ -_ , y r,_ ' I I , L,. u F C •a N ��. �� ..w - „�, a..� ': �' w -. ��4,.�3 V�.ua!�.��.9. a W�: _. i -e'.. :,.,_ ,,. • .A . .. 01 ,., � r.. w . ".I I . r M 1 t- �a` �� , ��1..f .', ^" _ ..- ........._. ,.... -_ -- ..- .�..__.._..m._._ �...•. -,_.._ ^r . ,. . ,. ._ c k s .,..r ,r �� . � .d P u�c �..� � o-�,t.,u . .. u.r. w'-: �� X >�'�'�: • Planned Wellpath Report nal BAKER KBU41 -18X Version #3 HUGHES MARATHON Page 3 of 7 IE _y -�.. � n�b,,� �, a. � _.��u�_ ;RE FERENCE I'VELLPATH IDENTIFICATION ° Operator MARATHON Oil Company Slot Slot #KBU41 -18X Area Cook Inlet, Alaska (Kenai Penninsula) - KBU41 -18X 1 Field Kenai Gas Field (NAD83) Wellbore KBU41 -18X Pad #41 18 MD Inclination Azimuth TVD North Grid East Grid North DLS Build Rate Turn Rate Comments ft °_ ° ft ft __.. sry ft sry ft [ °/100ft ° /100ft [ °/100ft] 3000.00 10.000 318.38', 2997.47 43.52 32.54 -28.90 1415271.86 2356079.30 2.00 2.00 0.00 3100.001 12.000 318.38'' 3095.62 62.60 46.81 ; -41.57 1415259.46 2356093.80 2.00 2.00 0.00 3200.00 14.000 318.38' 3193.06 85.10 63.62 -56.51 1415244.85 2356110.90 2.00 2.00 0.00 3267.91 15.358 318.38 ? i 3258.75 , 102.31 76.49 -67.94 1415233. 67 2356123.98 2.00 2.00 0.01 IndofB inld � - - 318.38 3386.12 � _ _ 1C,, [ �. �,� G� ' j .,<. '�' .��.."= 3400.00f 15.358, 8, 137.29 102.65 -91.17 1415210.93 2356150.57 0.00 0.00. 0.00 318.38 3578.98 190.26 122.45 - 108.76 1415193.72 2356170.70 0.00 0.00 0.01 3600.001 318.389 3482.55 163.77 3500.00 15.358 142.25 - 126.35 1415176.52 2356190.83 0.00 0.00 0.00 3700.001 15.358 318.38' 3675.41 216.75 162.05 ' - 143.93 1415159.31 2356210.96 0.00 0.00 0.00 . . 390000 ' 15.358 8 _ . 269.72 201.66 - 179.11 1415124.89. 2356251.221 0.00 0.00 0.00. 4000.00 15.358 318.389 3964.6 .' 3964.69 296.20 221.46 - - 196.70 1415107.68 2356271.36 0.00 0.00 0.00 4100.001 15.358 , 241.26 - 214.29 1415090.47 2356291.49 0.00 - 0.00 0.00 `. 318.389 406L12 322.69 : • .. i 0.00 4200.00f 15 358 318.389 4157.55 349.17 261.07 - 231.87 1415073.26 2356311 62 0.00 0.00 � s w^ �p I p &� }g tiu " II 4400.00 15.358 318.389 4350.41 402.14 300.67 - 267.05 1415038.84 2356351.88 0.00 0.00 0.00 .............. 4500.00 15.358 318.389 4446.84 428.63 320.47 - 284.64 1415021.63 2356372.01 0.00 0.001 0.00 , 4600.001 15.358 318.389 4543.27 455.11 340.28 - 302.23 1415004.42 2356392.14 0.00 0.00 0.00 4700.00 15.358 318.389 4639.70 481.60 360.08 - 319.81 ! 1414987.21 2356412.27 0.00 0.00 0.00 , i J _.. -_ - l '"r '• n � '''''' a ' u ' r u l 1 l q1 e I� v 1 _. �. _ _ _ _ -- - ��F 71� Alm v'f� d a ,.- ' & kP a aR; ' '� � � v r l u � ' � �EPflfi� � ° �. 4900.001 15.358 318.389 4832.55 534.57 399.68 - 354.99 1414952.79 2356452.53 0.00 0.00 0.00IIIIIIIIIIIIIIIIIIIIIIIII *to lot 15.358 318.389 4928.98 561.06 419.49 - 372.58 1414935.58 2356472.66 0.00 0.00 0.01 IIIIIIIIIIIIIIIIIIIIIIIIII 5100.00 15.358 318.389 5025.41 587.54 439.29 ; - 390.17 1414918.37 2356492.79 0.00 0.00 0.00!. 5178.73 15.358 318.389 5101.33 608.39 454.88 404.01 1414904 83 2356508.64 0.00 0.00 0.00 it egin Angle Drop " _ I 477.50 - 424.11 1 2356531.64 1.50 -1.50 0.00_ 4 '�: 12.039 318.38'! . ! : _..._ l � �_ _..__. •._ 63865,.... 50.00 531627 660.79 4 0 0 0 00 13 039 318 38 5218.76 494.05 - 438.81 1414870.78 2356548.47 1.50 -1.50 0.00 _ 5500.00 10.539 318.389 5414.34 680.36 508.69 - 451.80 1414858.06 2356563.35 1.50 -1.50 0.00 5600.00f 9.039 318.389 5512.88 697.36 521.40 -463.10 1414847.02 2356576 27 1.50 1.5 0.00 , ,,� ,� u � f 4 ,_ 4 . �.. �„ I � �I r E � 7z � 1. , 5 I rr �Ilif lu . b , .a�� N - .�l�, . `I . .'.. �'. -- .,�+a� - � .�,: ,��u, �� ..�� Jluu� h q .I,uv.� . ��..�.,. w��V��,.�.,.�,�,�..� .a. .,,I �w � �„i.. - � ......_ - - .._ .. .._. __._.._.__. . -.�,. � �� .., .�..- w �,,� ate. ,.,�. . ,,., . W .:.. -- . ..�;..... � � M Planned Well path Report BAKER KBU41 -18X Version #3 HUGHES MARATHON Page 4 of 7 INTEQ REFERENCE IDENTIFICATION _ _ _ Operator MARATHON Oil Company Slot Slot #KBU41 -18X ',Area Cook Inlet, Alaska (Kenai Penninsula) C KBU41 -18X Field Kenai Gas Field (NAD83) Wellbore KBU41 -18X 3 Pad #41 -18 1 1 :a HD ATA (93 stations) .� ", '� ( ) � interpolated /extrapolated stati,�i ' MD Inclination Azimuth TVD North Grid East Grid North DLS Build Rate Turn Rate Comments Vi _..� ° ° ft � ft] sry ft sry ft ° /100ft [ ° /100ft ° /100ft 5800.00 6.039, 318.389 5711.13 723.60 541.02 - 480.52 1414829.97 2356596.21 1.50! - 1.50 0.00 5900.00 4.539 318.389 5810.70 732.82 547.91 - 486.64 1414823.98 2356603.22 1.50 -1.50, 0.00; 6 3.039 318.389 5910.48 739.43 552.85 - 491.03 1414819.68 2356608.24 1.50 -1.50 0.00 6100.00 1.539 318.389 6010.39 743.42 555.84 - 493.68 1414817.09 2356611.28 1.50 0.00 ___ -�. 6202.62 0.000! 318.389 744.80 � a E , ,� t;Ir. 1.50 -1.50 0.00 EOD / Lowe r Beluga � 6400.001 0.000 318.389 6310.38 744.80 556.87 - 494.60 1414816.19 2356612.32 0.00 0.00, 0.00 744.80 556.87 - 494.60 1414816.19 2356612.32 0.00 0.00 0.00 6500.001 . 0.000'. 318.389 6410.38 744.80 556.87 - 494.60 1414816.19 2356612.32 0.00 0.00 0.00 6700.00f 0.000 318.389 6610.3 744.80 556.87 - 494.60 1414816.19 I 1 4816.19 2356612.32 0.00. 0.00 0.00 6800.001 0.000 318.389 6710.38 744.80 556.87 - 494.60 1414816.19 2356612.32 0.00 0.00 0.00 6900.00-; 0.000 318.389 6810.38 744.80 556.87 - 494.60 1414816.19 2356612.32 0.00 0.001 0.00 7000.001 0.000 318.389 6910.38 744.80 556.87 ` - 494.60 1414816.19 2356612.32 0.00 ! 0.001 0.001 ?4 cp ,,� a ` ?" �M rzk Ii , ee it I V " ,, , F " . P' ° , S' ,r , c , ,. a1� v ...... d __..,. ... ..__ "I i. Q x }� "'. H -.rP r�'-0'iv` _a" ,1,4,, .. � _ „ „�. �� 556.87 - 494.60 1414816.19 � 2356612. � � .��'�� r i �� "�� f ".,, � ;� � ._. - °�.� � �� ,.. 7200.00. 0.000 318.389 7110.38 744.80 � 32 0.00 0.00 0.0011111111111111.11111111.114 S ' 7300.001- 0.000 318.389 7210.38 744.80 556.87 - 494.60 1414816.19 2356612.32 0.00 ` 0.00 0.00_ 7327.62 0.000' 318.389 1 744.80 y " �` .�� y 2356612.32 0 00 0.00 0.00 _, . _�� s_ 7400.001 0.000 318.389 7310.38 744.80 556.87 .. 494.60 1414816 235661 8 0 00 0.00 0.00 T onek ,a ,• _ ,_. _r;, •. „a �. . r .,s ii , .; . , „ a, .m r ,,! ' . r ,r�„ ._...." ,.. "7,1r! y� ,Ea� .,f L I c I. _ ? . an, -,�r _ - _ E t ,, . '� r Iii ��,a, - "l '" f r r,• >:. tk,,P"r. ..'h y .... � ,. r P��'k�l�r� , r .... ,; � �• "q.� °�'��k�dr.F .�., , r :, • ,r � :) . � _ �s , ., kt �- � �''�, �+ I. frog '� ��u E�w �' i + i 7600.001* 0.000 318.389 7510.38 744.80 556.8 -494.60 1414816.19 � � � � -__ a� . s 0.00 �ra s 2356612.32 0.00 . 00 0.00 7700.00 0.000 318.389, 7610.38_, 744.80 556.87 - 494.60 1414816.19 2356612.32 0.00 0.00 0.00 7800.00 : 0.000 318.389 _ 7710.38 744.80 556.87 - 494.60 1414816A9 2356612.32 0.00 0.00 0.00IIIIIII • - 8- . 1414816.19 2356612.32 0.00 0.00 000 ®�u -� 8 � 744.80 556.87 -494 60 . , . 1414816 19 2356 2 . . o d I °tl , ,, mV I l �. 8 7900 00 0.000 p I� �u N� ?�' I --0-40 s I S.',, tW a 1 - Ilia , � �"P ��r>' I I� irv" 1 't,0,- - v kp$' :. ' ' , r0 r r a l r.. f" �w. `._. �. �.., _.v,... .....�....w..m... - ._:a .�..: -- - •.� ��.,_ .. _ -:_ ,._...__.�.. ._.__.. _._,. .,_.._..' �:� ��F.� r��,i. �:, i•i � a,, earl ira r ,as r .prr<<�`k.:, 8200.00 ' 0.000 318.389, 8110.38 744.80 W 556.87 - 494.60 1414816.19 2356612.32 0.00 0.00 0.00 8100 00 \ 0.000 318 .389 8010.38 744 80 556.87 -494.60 1414816.19 2356612.32 0.00 0.00 0.00 8300.001, , -- 318.389 8210.38 744.80 556.87 - 494.60 1414816.19 2356612.32 0.00 0.00 0.00 8400.00 0.000 831038 _ 744.80 556.87 - 494.60 1414816.19 2356612.32 0.00 ,. 0.00 0.00 1 . 0.000 I 318.38' 8310 i ;1''''' � v I i i i -. a� � � r �� 1 r B "fi r, � .� , :" 1 ' z .,_.. V '« �� v �1 °I J ',4 . 6 L�.W _T .. •�s�l'"SSr. n �r� i ,5 4� r .�t Aft Planned Wellpath Report BKER KBU41 -18X Version #3 HUGHES MARATHON Page 5 of 7 INTEQ P REFERENCE WELLPATH IDENTIFICATION Operator MARATHON Oil Company Slot Slot #KBU41 -18X Area Cook Inlet, Alaska (Kenai Penninsula) KBU41 -18X 'Field Kenai Gas Field (NAD83) Wellbore KBU41 -18X ffloonni laragusing Pad #41 -18 gam, . I TA (93 stations) t A Atation MD Inclination Azimuth TVD Vert Sect North Grid East Grid North DLS Build Rate Turn Rate Comments ft ft Cftl _ ft_._ sry ft sry ft /Y00ft °/100ft [ ° /100ft ■ 1 ' 8600.00 0 0.000 318.38 8510.38 744.80 556.87 -494.60 1414816.19 2356612.32 ° 0.00 0.00 0.00 8700.00 0.000 318.389 8610.38 744.80 556.87 : -494.60 1414816.19 2356612.32 0.00 0.00 0.00 8797.62 0.000 318.389 a �� , I 744.80 a E . ` ` g m: 0.00 0.00 0.00 Revised TD HOLE & CASING SECTIONS Ref Wellbore. IU4 -18X A ath, KBIU4 e X Vers #3 String/Diameter Start MD End MD Interval Start TVD End TVD Start N/S Start E/W End N/S End E/W ' [ft] [ft] [ft] ....._ _.... [ft] [ft] [ft] [ft] [ft] [ft] 16m Open Hole 0 1500.00 1500.00 0.00 1500.00 0.00 0.00 0.00 0.00 a g _ 0 13 375m Casing Surface 0.00+ 1500.00 1500.00 0.00 1500.00 0.00 0.00 0.00 0.00 p 3973.19 1500.00 5388.00 0.00 0.00 504.95 -448.49 12 25in Open Hole 1500 00 5473.19' 9.625in Casing Intermediate 0.00; 5473.19 5473.19 0.00 5388.00 0.00 0.00 504.95 - 448.49 8.5in Open Hole 5473.19 8797.61 3324.42 5388.00 8708.00 504.95 -448.49 556. - 494.60 3.5in Casing Production 0.00 8797.62 8797.62 0.00 8708.00 0.00 0.00 556.87 - 494.60 • Planned Wellpath Report NSW BAKER KBU41 -18X Version #3 HUGHES P age 6 of 7 MARATHON INTEQ REFERENCE WELLPATH IDENTIFICATION Operator MARATHON Oil Com ' any Slot Slot #KBU41 -18X ;Area s , . , , Well KBU41 -18X ;Field Kenai Gas Field (NAD83) Wellbore KBU41 -18X Pad #41 -18 TARGETS Name MD TVD North East Grid East Grid North Latitude Longitude Sb [ft] [ft] [ft] [ft] [sry ft] [sry ft] � circle 6 202.62 ��z : :A�.1 �� .��4 ° °h��` 1 1) KBU41 -18X Lower Beluga Converted �� . .-� < 22- Jan -08 2) KBU41 -18X Tyonek Converted 22 -Jan- 7327.62 ^� � ` . g _ circle 108 ,cup kfi ' , w < s ,y s °<t 4 r t s t r �$"'v' a '- 4" circle 8797.62 k�� 4 �.� ? <.., � � � E `: ,s`�'��'r ` � <�� ., ..�. rt' ..� �� .�� v 3) KBU41 -18X TD Revised 13- Feb -08 SURVEY PROGRAM '' f Wellbore: KBU 41 -18X Ref Wellpath: KBU41 ` Version #3 Start MD End MD Positional Uncertainty Model Log Name /Comment Wellbore [ft] ft 0.00 1500.001 aviTrak Ma :corrl 1 :U41 -18X 1500.00 5473.1'1 aviTrak Ma_corrl 1 :U41 -18X 5473.19 8797.6 1 aviTrak Ma_corr1 I :U41 -18X AIM Planned Wellpath Report KBU41 -18X Version #3 HUGHES MARATHON Page 7 of 7 INIZQ REFERENCE WELLPATH IDENTIFICATION Operator MARATHON Oil Company Slot Slot #KBU41 -18X P p Area Cook Inlet, Alaska (Kenai Penninsula) Well ; KBU41 -18X Field Kenai Gas Field (NAD83) Wellbore KBU41 -18X Facility Pad #41 -18 t WELLFA 'II CO i 4 i. z � ti MD .. ..._ _.. Inclination [ [0] .. _.. Azimuth [ft] � Comment ; 7370.62 0.000 318.389 7281.00! Tyonek 72 - 7404.62 0.000 318.389 7315.00 Tyonek 73 -1 7646.62 0.000 318.389 7557.00 Tyonek 75 -8 7759.62 0.000 318.389 7670.00 Tyonek 76 -7 7931.62 0.000 318.389 7842.00 Tyonek 78 -2 8163.62' 0.000 318.389 8074.00 Tyonek 80 Coal 8509.62' 0.000 318.3893 8420.00 Tyonek 84 -6 8681.62; 0.000 318.389 8592.00 Tyonek 84 -6 Coal 8706 62 0.000 318.389 8617.00 Tyonek 86 -2 • a MA ATHON Oil Compan. MARATHON EIVAIR MUM II �r+s Location: Cook Inlet, Alaska (Kenai Penninsula) Slot: Slot #KBU41 -18X Field: Kenai Gas Field (NAD83) Well: KBU41 -18X F acility: Pad #41 -18 Wellbore: KBU41 -18X iNT Plot reference wellpalh is KBU41 -18X Version #3 True vertical depths are referenced to Glacier #1 (RKB) Grid System: NAD83 / TM Alaska State Plane, Zone 4 (5004), US feet Measured depths are referenced to Glacier #1 (RKB) North Reference: True north Glacier #1 (RKB) to Mean Sea Level: 88 feet Scale: True distance Mean Sea Level to Mud line (Facility: Pad #41 -18): 0 feet Depths are in feet Coordinates are in feet referenced to Slot Created by: jonethoh on 13- Feb -08 Sala 1 Inch =loon Easting (ft) -550 -500 -450 -400 -350 -300 -250 -200 -150 -100 -50 0 50 100 150 I 1 I I I 1 I I I I I I I I J 750 �/ i J' — 750 700 Th 700 650 2500 � 650 600 — 600 .7 p 550 — 590 \ — 550 5700 5500 500 — 5300 500 0 2300 — 5100 450 450 .(i)c: d�, 491' 400 V=? 400 2300 4700 K 350 T 2100 350 i c 4500 • C u 0 300 300 2100 4300 250 — 4100 ■ 250 3900 1900 1090. 200 0 ," 1900 3700 � ' 150 — Q O ■ 150 0 10700 3500 100 — ■ 100 3300 1700 ^ ^ O C 10500 50 — 3100 1700 — 50 cb 2900 '10S 10300 0 <P 2700 Slot #KBU24 -7X Slot #KBU41 -18X 1500 5 10100 , 0 -50 1500 -100 — 1300 9900 — -100 I I I I I I I I I I I I I I -550 -500 -450 -400 -350 -300 -250 -200 -150 -100 -50 0 50 100 150 MAATHON Oil Compan, B ffieg AKER � Location: Cook Inlet, Alaska (Kenai Penninsula) Slot: Slot #KBU41-18X HUGHES Field: Kenai Gas Field (NAD83) Well: KBU41 -18X Facility: Pad #41 -18 MARATHON Wellbore: KBU41 -18X Fa Plot reference wellpath is KBU41 -18X Version #3 True vertical depths are referenced to Glacier #1 (RKB) Grid System: NAD83 / TM Alaska State Plane, Zone 4 (5004), US feet Measured depths are referenced to Glacier #1 (RKB) North Reference: True north Glacier #1 (RKB) to Mean Sea Level: 88 feet Scale: True distance Depths are in feet Mean Sea Level to Mud line (Facility: Pad #41 -18): 0 feet Coordinates are in feet referenced to Slot Created by: jonethoh on 13- Feb -08 Traveling Cylinder: Map North All depths ar e M easured Depths on Reference Wellpath a 4 ,; 0' i 990' s � a r _ 900' ..• ar S. r _ kBV? r , f W _ ( S r �y 2701T I I .,. If j l E all) S ( _ ,t _ 'wow 3 •v } +. J 290' 1. .= _.._.. _ 120 210' •_ —_ 150' i'' 100' Scale 1 inch = 30 ft M Clearance Report '°- KBU41 -18X Version #3 BAKER MARATHON Closest Approach HUGHES Page 1 of 31 INTEQ PREFERENCE WELLPATH IDENTIFICATION Operator _ p or MARATHON Oil Company Slot Slot #KBU41 -18X Area Cook Inlet, Alaska (Kenai Penninsula) = KBU41 -18X Field Kenai Gas Field (NAD83) Wellbore .KBU41 -18X Facility Pad #41 -18 REPORT SETUP INFORMATION m t e Pro'ction System _._. _.., J _ Y _ m ,„ _ =NAD83 / TM Alaska State Plane, Zone 4 (5004), US feet Software System - WellArchitect® 2.0 North Reference True User Scale ;0.999958 Report Generated 13-Feb-08 at 07:40:48 Convergence at slot 1.08° West - _ -- -W - Database /Source file WA Anchorage/KBU41- 18X.xml , WELLPATH LOCATION Local coordinates Grid coordinates Geographic coordinates North[ft] Easting[USft] Northing[USft] Latitude Longitude Slot Location - 446.84 - 538.58 1415300.14 2356046.22 60 °26'35.855 "N 151 °14'47.610 "W 151 Facility Reference Pt 1415847.04 2356482.79 60 °26'40.256 "N Field Reference Pt 1111111111111111111.1.111111 1410937.15 2361824.52 60°27'31.931"N 151 ° 16' 16.783 "W : .'WELLPATH DATUM Calculation method Minimu Curvature - ` ,_ _ - - d Glacier #1 (RKB) to Facility Vertical Datum ,._ 88 . 00 ft Horizontal Reference Pt Slot Glacier #1 (RKB) to Mean Sea Level 88.0Oft Vertical Reference Pt Glacier #1 (RKB) Facility Vertical Datum to Mud Line (Facility) O.00ft 1 MD Reference Pt Glacier #1 (RKB) Field Vertical Reference Mean Sea Level a a . b4t s .s . ,. . x a ' ... > -. .. i. x v t. r v ....:. .: l k .$t8&�}Ykv , k:K M 1 u : . KA'att�; a.`:Ki+�S°vt.v�F:,. . . , . , c.: .. .n.. .=*a z.. > . .,.a x c :, .e a $di:. 1Y°' x"ak :r°xav`".i`S._:". a,SIT�I�AL `CE. x. x ...:.s . RT> eT .a� a z 2. 'Y "$'.;. . ' ° �' .. e. . _ � ..a `•' a� . ai -., s, •. �.ia > .a ..:. . _.. v..> � \.�'` a.s �. "., s a e �`.�� .. �> 'F � ` . . _ ... . _._ _..: .. �;$ ova Vv.. :. ti. Ellipse Confidence Limit 3.00 Std Dev Ellipse Start Depth 0.0Oft Surface Position Uncertainty included Declination 18.93° East of TN Dip Angle ° Magnetic Field Strength 5 _. P g 73.37 Ma g ne 55408 nT Ali Clearance Report a KBU41 -18X Version #3 BAKER Closest Approach HUGHES MARATHON Page 2 of 31 INTEQ 'REP'EIZENCE WELLPATH II)ENTIhICATION Operator tor MARATHON Oil Company Slot Slot #KB _ ? . a .._ . -.- �?ny __ _ _ ._ � _^ U41 -18X ? Area Cook Inlet, Alaska (Kenai Penninsula) Well 'KBU41-18X Field Kenai Gas Field (NAD83) Wellbore 1 KBU41 -18X . Pad #41-18 AN'T'I.CGSLliSIQ RUL . Rule Name E-type Closest Approach w/Hole &Csg Limit:0 StdDev:3.00 w /Surface Uncert Rule Based On Ellipsoid Separ' Plane of Rule Closest Approach Threshold Value 0.00ft Subtract Casing & Hole Size yes Apply Cone of Safety , no .€ :'' ., � � Cz�l�] ; .I -1,Q� li,�f�3?`�`ill�� .<ICBU`1 -�tiX ., �y��f ell 1]�.E� l� .� X"�ex`sttll #3:. . > +.. String/Diameter Start MD End MD Interval Start TVD End TVD Start N/S Start ENV End N/S End E/W [ft] [ft] [ft] [ft] [ft] [ft] [ft] [ft] [ft] . 16in Open Hole 0.00 1500.00 1500.00 0.00. 1500.00 0.00 0.00 0.00 0.00 Surface Surface 1500.00 1500.00 547. 1500.090 9; 397019: 1500.00 5388.00 0.00` 0.00 504.95 0.00 , -448.49 '9..25i C. 1 , I - -.. - 0.00 5473.19 5473.19 0.00 5388.00 0.00 0.00 504.95 - 448.49; 8.5in Open Hole 5473.19 8797.61 3324.42 5388.00 8708.00 504.95' - 448.49 556.87 - 494.60' 3 5in Casing Production 0.00 8797.62 8797.62 0.00 8708.00 0.00 0.00 556.87 494.60' _ � ^,ER4t`� 1:��Ve11 e. ICU � . � _, _� � a Start MD End MD Positional Uncertainty Model Log Name/Comment �� nt Wellbore ft 0.00 1500.001 aviTrak Magcorrl) I: "MieIE : 1500.00 5473.191 aviTrak (Magcorrl) 11111111111111111111111111111111111111111111.1111111 : U41 -18X_ aviTrak Ma:cord. :U41 -18X : 5473 19 _._ _ . _ . _ 8797 62;1 avi I _ _ _ __ Ali Clearance Report BAKER KBU41 -18X Version #3 MARATHON Page Approach HUGHES Page 3 of 31 INTEQ 'REFERENCE WELLPATH IDENTIFICATION Operator MARATHON Oil Company Slot , Slot #KBU41 -18X Area Cook Inlet, Alaska (Kenai Penninsula)11111KBU41 -18X j Field Kenai Gas Field (NAD83) Wellbore KBU41 -18X Pa #41 CALCULATION RANGE RANGE & CUTOFF From: O.00ft MD To: 8797.62ft MD C -C Cutoff: (none) OFFSET WELL CLEARANCE SUMMARY (7 Offset Wellpaths selected) Offset Offset Offset Offset Offset Ref Min C -C Diverging Ref MD of Min C -C Min C -C i ACR Facility Slot Well Wellbore Wellpath MD Clear Dist from MD Mm C -C Ell Sep Ell Sep I Status [ft] [ft] [ft] Ell Sep [ft] Dvrg from ] 1 [ftl [ft] b � Pad #41 -18 slot #KBU13 -8 120111111111=1311111111 MSS <0-8770> 1652.68 11111M 1652.68 1657.14 15.12 1657.14 PASS Pad #41 -18 Slot #KBU24 -7X KBU24 -7X KBU24 -7X NaviTrak <173 - 83035 11.02 59.31 6000.00 11.02 45.81 6000.00 PASS Pad #41-18 slot #KUl l 17 GMS <0 -5400> 244.79 1361.25 1377.63 ', 18 slot #KBU33 7 MSS <0 -7910> 267 61 1177.81 1195.84 249 223 72 92 1377 63 PASS 3 Pa #41 1195 84 PASS VIP .�,', 4 , , v „[ s ue s , Pad #41 -18 slot #KU24 -7 i KU24 -7 MEMMIIIIIIIII GMS <0- 5820'> 330.63 349.86 330.63' 344.45 336.47 344.45 PASS Pad #41 -18 slot #KU24 -7 ESESIMME KU24 -7RD MWD <3777 -4800> 330.63 349.86 330.63 344.45 336.47 344.45 PASS • M Clearance Report KBU41 -18X Version KER BA Closest Approach HUGHES MARATHON Page 4 of 31 INTEQ REFERENCE WELLPATH IDENTIFICATION Operator MARATHON Oil Company Slot ;Slot #KBU41 -18X Area Cook Inlet, Alaska (Kenai Penninsula) KBU41 -18X Field Kenai Gas Field (NAD83) Wellbore KBU41 -18X iiimimmummimmummit m__Pad #41-18 CLEARANCE DATA Offset Wellbore: KBU13 -8 Offset Wellpath: MSS <0 = acility: Pad. #41 - Slot: slot #KBU13 -8 _ Well: KBU13 -8 Threshold Value=0 00 ft' interpolated/eatr olated station Ref MD Ref TV D Ref North ] Ref East ] Offset MD Offset TVD w _ Offset North Offset East 1 Horiz C -C Ellipse - $ - AR C - A O [ft] [ft] [ft] I [ft] [ft] i [ft] 1 [ft] [ft] 1 Bearing Clear Dist Sep I MASD t Status 0.00t 0.00 0.00 0.00 10.0' 0.0' -354.25 - 127.80 199.84 376.60 363.36 13.23 PASS 100- .00 100.01 0.01 0.00 110.41 100.41 354.18 - 127.81 199.84 376.54 363.21; 13.334 PASS ' ' 200.00 200.00 0.00 0.00 210.78 200.78 - 354.00 - 127.83 199.86 376.38 362.92 13.46'. PASS 300.00 1 300.01 0.01 0.01 311.1. I 301.15 127.87 19 _ ��r . 41;11 : t 4 ". PAS , S';' f ] 500 00 500.0 - 91 1', I rr 1r 0.01 0.014 543.11' 532.90 347.02 199.84 370.39 355.51'P 14.871 PASS 600.00 ' 600.01 0.01 0.01 669.6. 658.37 - 331.07 - 122.39 200.29 357.76 341.70 16.06 PASS 700.00 700.01' 0.00; 0 .00 779.61 766.41 - 310.977. - 119.37 201.00 339.65, 11111MIIMER PASS 800.001 800.01 0.01 0.00 884.00 868.47 - 289.20 - 116.31 201.91! 319.1'' 300.55 18.59 PASS r rik 1000.0o 1000.00 0.01 0.01 1094.23 1072.2' 1 - 238.33 - 107.73 20432'' 271.3'' 250.13 21.21 PASS A 1100.00t 1100.00 0.00 0.01 1198.52 1172.1''. - 209.20 - 101.00 205.77 243.25 220.70! 22.54 PASS 1200.00. 1200.00 0.01, 0.00! 1301.23 1269.55 -177.89 - 91.9' 207.33 211.98 188.09 23.89 PASS ' 1300.00 1300.00 0.01 0.00 1401.15 1363.18 - 144.8' -81.44 209.35 152.56 25.21 PASS t 1500.00 1500.01 0.00 0.01 1601.47 1543.29 - 60.60 -58.57 224.02 94.75 67.62 PA 1600.00 1600.01 0.00 0.01 1689.81 1617.73 -14.64 - 46.47 51.85 25.38 26.47 PASS 1652.68 1652.68 0.00 0.01 1732.91 1652.76 9.74 - 40.41 283.55 41.57 15.20 26.37 PASS q 0 0.00 1736.43 i' 43 1655.58 11.79 -39.91 286.45 41.65 15 12 26 52 PASS firy +�'. ..,: 14 16$7.1., 0.0� ' ....... - '.; �r,; Yn,� _ .,. m�' .; :� -, ��.;�:�: n. i::>�, �a�r_u� iv .� r a� '.�f tyta $ l ii ati "k9m; � .- d i,,,k; ., "A"e ' td iz;,n147ln l ig:swam, i W 4r u 18 1800.00 0.00 0.00' 1847.8' 1742.97 79.08' -24.25 342.95 100.47 68.81 31.67! PASS 1900.001 _ 1900.00 0.00 0.00: 1926.69 1804.75 126.83 - 13.23 354.05 159.16. 33.42 PASS 2000.00 2000.01 0.01 0.01 2006.89 1867.86 175.04 -2.10 359.31 219.33 184.63 34.70 PASS 2100.0* 2100.01 0.01 0.01- 2088.41 1932.1 223.47 9.08 2.33 279.46 243.58 35.87 PASS . v d '0,:t i f .,�°,, l ''d fi zirc °3- �e.1 '�'r �I! - a , ; `mid _ ::,, -,.,- ;< , . , , - _ ,,,,, 4 _...:..a.____.... _ _, , 1� E'.. . ar " M.1 r rmr '� r w �� .. � �. -_ _ __.W_ r 0 31.09 5.57 399.07! 360.91 38.16 PASS __ 2300.00 2300.00 1 2 0.00 2250 72 2061.98 318.8 2400.00 2400.01 419.04 0.00 0.01 2333.08 2128.01 366.77 42.23 6.57 458.57 39.53 PASS 2500.00t 2500.00 _._.. 0.01 .__ 0.01; 2416.59 2195.22 414.96 53.76 "7.38, 517.67 476.91 40.76; PASS 2600.00 2599.98 1 -1.16 2497.31' 2260.40 461.15, 65.22 8.21 575.48 533.64 41.84 PASS 10,43/ itei Clearance Report KBU41 -18X Version #3 r �A KE Closest Approach HUGHES MARATHON Page 5 of 31 INTEQ REFERENCE WELLPATH IDENTIFICATION ` Operator MARATHON Oil Company Slot ; Sl o t #KBU41 -18X Area Cook Inlet, Alaska (Kenai Penninsula) KBU41 -18X F Kenai Gas Field (NAD83) Wellbore KBU41 - 18X Eanill Pad #41 18 IIIIIIIMIIIIIOIIIIIIIIMIMIIIIIIMIIIIIIIOIIIIIIIOIIIMIIIMIIIIIIIIIIIIM LEARA NCE'DATA - Off set Wellbore: KBU13 -8 Offset Wellpath: MSS <0 -8770> acility: Pad #41 -18 ty: Slot: slot #1031. Well: KBU13 - Threshold Value =0 00 ft - inter : olated/extra olated station Ref MD ! Ref TVD Ref North Ref East Offset MD ' Offs T VD Offset North Offset East Horiz C - Ellipse ACR Al [ft) [ft) [ft] [ftJ [ft] [ft] [ft] [ft] Bearing Clear Dist Sep ft MASD Stat ' 0 [ft ft ti 2800.00 2799.45' - 10.42 2637.44 2371.73 543.1' 88.00 10.49 689.22 645.55 43.68 PASS j 2900.00t 2898.70, 20.85 -18.51 2705.10 2424.27 584.01 100.13! 11.91, 745.86 701.26 44.60 : Y. 3000.00 2997.47! 32.54 - 28.90 2771.48 2475.02 624.95 112.59' 13.43 802.44 756.93 45.52 PASS 3100.00I 3095.62 46.81 -41.5 2837.75' 2524.89 666.68 125.35; 15.0 858.981 812.50 46.48. PASS , 3267.91f 3258.75! 76.49 -67.94 2949.03 2607.06 738.40 147.28! 18.01 953.49 905.29 48.20 PASS _ __ 3300.00 �g 3289.69 82.85 -73.58 2971.44! 2623.41 753.11 151.78 18.58 971.58 923.00 48.57 PASS 3400.00 3386.12 102.65 -91.17 .! 2676.67 801.31 166.80 ; 9117 30448' 267667 20.27 1028.59 978.67 49.92 PASS 3500.00 3482.55, 122 45 - 108.76 3117.40! 2729.03 849.1' 182.11 21.81 1086.50 1035.19 1I PASS . , �1�� " ! -J �.. 162.05x' - _ 3700.00 3675.41 -143.93 1204.57' 1150.33- 54.2' PASS 3800.00 3771.8' 181.86 143.93 3263.8' I 2834.01 946.03.: 214.40: 24.5. - 161.52 3442.24 2964.81 1058.32 259.59 25.66 1263.66, 1204.99 58.66 PASS 3900.00t 3868.26 201.66 - 179.11 3545.73 3045.4. 1114.07, 292.67111111MM 1316.08 1254.85 61.23? PASS 8 86 1369 45 1306 49 62 96 PASS 4000 00 3964.69 221.46 196.71 c' � I„ � ) ,�lkf � a, l+ � � 11 �� a ��,�� , � a . _,��, �,, 1 � -__ -� 3616.84 3100 81 1152.05 316.2' 2 m - N is. tl , r ,Aid , r ,i i m: prizs ,] e 4200.00 4157.55 261.07 -231.87 3740.29 3195.57 1219.11 358.14', 31.63 1480.32' 14 65.66 PA 4300.00 4253.98 280.87, -249.4. 3803.32 3243.27 1254.06 379.99 32.89 1537.81 1470.71 67.0' PASS 4400.00 4350.41! 300.67 - 267.05 3866.86 3290.96 1289.65 402.23 34.09 1596.38 1527.81 68.57 PASS 4500.00 4446.84 320.47 - 284.6 3929.56 3337 66 1325 12 424 39 35.21 1655.99 1585.94 70.05 PASS s.. mv, �.r h "� � I � �_ . ,.� -_ Im i:, • I ,... C _ ..:: . �" ,:,,fi � �. ,, , -. _ ,;) � r ,. ` .. _. ,., _. __.._ .... - - -.. .. d,.. , i.: ..,.,, �N .: c _. Vet _',. w .�m�5 w - J l ,. l { 1 r -. -_ �1 r.... ,.. a, . i _.. t� M, -f eY -. -.. :. [` ,},�[� + a u, I I , ' i I I o i i , �:.:...4 "3 1a:: � r E , .. m...�.:x�U�ll "�1.'�lu �r..oay {Y . a . . ;,,i J s .._ _. _ ... ,,.� r ' _ -'- ---' 4 I "•: .,, I ... ;�, x w I i i��.�- _�,�.d� � �', 1 s� �`,+��, k �.t� "v rl„im 4700.00 4639.70 360.08 - 319.81 4103.97 3467.55! 1423.84 486.08 37.15 1776.22 17 74.35 PASS 4800 00t 4736.12 379.88, - 337.40 4204.37 , 3543.2' 1479.77 521.03 37.9 . 1835.66 1758.77 76.89 PASS 4900.00 4832.55 399.68 -354.99 4309.96 3623.81 1537.65 557.20 38.72 1894.23', 1814.67 79.57 PASS 5000.00 4928.98 419.49 - 372.58 4417.79 3707.11 1595.71 593.48 39.40 1951 86 1869 56 82 30 PASS '' i :. = fi NPd ,',:, 41/'''' r G , ir f.io, �� , ua a �, '° SF , - ®r ��.., - �' = ;.- I�,o „II1 a �� _� �� Y �� t 5178.73 5101.33 454.88 - 404.01 4611.85; 3859.46: 1697.88', 656.80 40.48 2052.47 1965.14: 87.33 PASS 5 5121 8. 459.05 -407.72 4635.32 3878.08 1710.06 664.25 40.59 2064.25, 1976.31 87.94 PASS 5300.00 5218.7: 477.50 4" 42411 4747.12' 3967.3 1767.61 699.15' 41:05 2119.45, 2028.67 90.78 PASS 5400.00 5316.27 .. . 494.05' -438.81 4864.25 4061 .9 1826 83 734 74 41.37. 2174.13 2080.50 93.63 PASS g _ 1 r J. ___ . _......_., J, r p Er � ® ..n. wt.. .�a - - :: . '-'1, .d.1. ,.,Wi.wJ,aA , w.0 ' !� YF:�.,r ling:.d.. c� tl . 1[,:^11,1',f -4 3'i 5k0,i M Clearance Report '► KBU41 -18X Version #3 1 BAK Closest Approach HUGHES MARATHON Page 6 of 31 INTEQ REFERENCE WELLPATH IDENTIFICATION Operator MARATHON Oil Company Slot , Slot #KBU41 -18X Area Cook Inlet Alaska (Kenai Penninsula)NI KBU41 -18X 'Field Kenai Gas Field (NAD83) Wellbore KBU41 -18X Pad #41 1 8 IIIIIIIMIMM CLEARANCE DATA - Offset Wellbore KBU13 -8 Offset Well. ath: MSS <0-8770> LFacilit Pad #41 -18 Slot: slot #KBU13-8 Well: KBU13 8 Threshold Value 0.00 ft, , = inter olated /extra olated station Ref MD Ref TVD Ref North Ref East Offset MD Offset TVD Offset North I Offset East Horiz C -C Ellipse ACR A [ft] i [ft] i [ft] 1 [ft] [ft] [ft] [ft] 1 [ft] Bearing Clear Dist Sep MASD Sta t o ft [ft 1 ft 5600.00t 5512.88 52140', - 463.10, 5105.39 4260.14 1944.54 805.47 41.71 2281.21 2182.47 98.74; PASS 11 -11 5700.00t 5611.83 532.18 - 472.67 5224.78 4359.88 2000.78 839.26 41.78 2333.5 2232.38 101.15 PASS ' 5800.001 5711.13 541.02 - 480.52 5346.15 4462.28 2056.63 872.82 41.76 2385.01, 2281.51 103.49 PASS 5900.00 i 5810.71 547.91 - 486..' 2110.22 2329.96 105.67 PASS _ fi 5465.38 4563.80 211022 905.02 41.69 2435.63 2329 --,,,1 � r,c��$fk 6100.00 6010.3 ' 555 8' - 493.68 5706.86 4772.0. t � ' 968.11 41.38 2534.53 2424 781 109.75 PASS 5873 01 4917.56 2283.94 1008.96 41.04 2581.92 2469.50 112.42 PASS 6200.001 6110.38. _._ 556 87 - 494.60 _ 6300.00 6210.38 556 87 - 494.60 6048.24 5073.67 4 .68 2583.1 2470.64 112.49 PASS 4 1048.9' 40.68 2626 72 2511 � 2285.72 1010.01 0 11 63 115.09 PASS qq�� s 1 .1 8 h.V, ��, d , ",4 ;Di �p``aF,6 i ('} �s �l g '`J.� � 1 ` i s��ydllau �,��„., 500OOt 6410.38 556.87 - 494.60 6403. 5397.98 2478.89 1119.81 40.03 2706.56 2586.60 6 .� S AS ^ 6 . 06.56, 2586.60 119.9.; PASS 6600.00 6510.38 556.87 - 494.60 6551.51, 2526.88 1146.41 39.79 2743.03', 2621.07 121.9. PASS 6700.00 6610.38 556.87 -494.60 6712.09 5685.92 2576.14 1173.48 39.56 IIIIIIIIIIIIIMEM 2653.50 124.01 PASS . , . . . 680000 6710.38 55687 -494.60 6880.92 ' ' ,�� 5845.50 2624.86 1199 20 39 32 2809.55 2683.50 126.05 PASS 4. 1A1" 1,I l .__ -. __ _ _. ._.. s __.:.._.. _ . _ _. 9 �ys`1 _ .._ ,.... . , �M._i _. .1114.. .ill :..4. ... � e'ry, '111',W1'" 7000.001 6910.38 556.87 - 494.60 7073.12 6028.16 2678.04 1226.56 39.06 2870.55 2741.87 128.68 P'. 7100.001 7010.38 556.87 - 494.60 7160.48 6111.10 2702.3. 1239.29 38.94 2901.41 2771.49 129.92 PASS 7200.00 7210.38 556.87! 7249.27 6195.34 2727.19 1252.44 38.83 2932.53 2801.36 131.171 PASS 7348.11 6289.09 2754.81 1267.13 38.71 2963.68 2831.21 13 PASS 7200.001 7110 38 556.87 - 494.60 t - 494.61 :: M ,. w" ! �l ;I ""1, . - . ' 1, �, - I v Irk ,x ,111 , ,. „ �E.f��,6 i;, lf,' -® a 9 .;: P w 0.- . ,..., ..H�. �. �H, }»:. . m p;�.' , 11 ' �� Eus�. -; 1 .. _ . -: -. _ ,,11 � �. ., �� . � : � d... hfs ... u � p aro. ,,, °� P^ � � V y �ll �+ . '� 1 �I' . u .. i , � fi � Il P ' : a.2 L f uu� A. I� �. '� �,YI �. L. '� z� �. ��< �"rz :'�. �,, II � ...- . '_ ha w�n T+ll y Jf - .. � k,. ., a 5�'� � . ,��m il =+s� �rtia+r �,�k d._ 7400.00t 7310.38 556.87 -494.60 7447.03 6382.96 2782.33 1281.76 38.60 2994.71 2860.94 133.77 PASS 7500.00 7410.38 556.87 -494.60 7546.04 6476.96 2809.77 1296.35 38.48 3025.62 2890.54 135.07 PASS 3 7600.00t 7510.38 556.87 - 494.60 7634.65 6561.10 2834.35 1309.43 38.38 3056.56 2920.26 136.30 PASS 7700.00t 7610.38 556.87 - 494.60 7722.58 6644.51 2858.91 1322.48 38 3087.73 2950 21 137.52 PASS I,.., a �'b . !!., , r ... 1 r . _ '. t �,, 1. 8 ' n m � .�21T 1 8 S IP i i. :. I , `E ». r,Ar 1�S w a: i` v Z- 1 1'`r .,dls a a ds , If , a'^ �.,q " .. _, , -. b. 1 Ia s1al. s�_H S .� �" 6 u'9. 4�. �a��7� 1 i� �lr,k' ! 3 �f - � _�1 ,. , ,��nw.'� rL'��_ ` _ _ -- ._ .. .. _..L .� �� - � �. � �._.. ...:�m. �.. '° -' . r �- .> � � �a.�� rsw °�i` �c��?y� 7900 00t{ 7810.38 556.87 -494.60 7916.87 6828.63 2913.70 1351.60. 38.07 3150.70 3010.55 140.15. PASS 8000.00t 7910.38 556.87, -494.60 8144.83 7046.31 2973.82 1382.46 37.83 3179.88 3037.32 142.56. PASS 1 _._ . 0000 8010.38 556.87 - 494.60 8323.8. 7219.03 3016.11 1403.27 37 81.! ; ; 2S 30 3081 83 144.58 PASS 8200.00 8110.38 200.00 8110 ' ; 1 y , ... ,. ___; __ 556.87 - 494.60 8488.08 7378.41 3051.45 1421 T 04 32 „^S `µ 18 IS 3082 .80 146.50 PASS _ _ 1 d r ! , , . i 29 1 91I'k 181$ , d: 1 4 r -., 8 " �e , M Clearance Report KBU41 -18X Version #3 BAKER Closest Approach HUGHES MARATHON Page 7 of 31 INTEQ REFERENCE WELLPATH IDENTIFICATION Operator MARATHON Oil Company Slot Slot #KBU41 -18X Area Cook Inlet, Alaska (Kenai Penninsula) =NM KBU41 -18X Field Kenai Gas Field (NAD83) Wellbore ; KBU41 -18X MOM Pad #41 -18 MUM CLEARANCE DATA - Offset Wellbore: KBU13 -8 Offset Welli` MSS <0 -8770> acili Pad #41 -18 Slot: slot #KBU13 -8 Well: KBU13 -8 Threshol Value -iI.O ft bite . .glated /extrapolated station Ref MD Ref TVD Ref North Ref East Offset MD Offset TVD Offset North ? Offset East Horiz C -C Ellipse ACR A [ft] [ft] [ft] [ft] z [ft] [ft] [ft] [ft] I Bearing Clear Dist Sep MASD Sta , [ °1 [ft] [ft] [ft] r 8400.00 8310.38 556.87 -494.60 8770.00 7653.90 3104.49 1448.65 37.34; 3270.71E 3120.79 149.92': PASS 8500. 01 8410.38 556.87 - 7653.90 3104.49 • 1448.65 37.34 3292.24 3141.46 150.78 PASS 8600.00 8510.38 556.87 494.60' 8770.01 7653.90 3104.49 1448.65 37.34 3316.65 3165.13 151.52' PASS -494.60 8770.01!, 7653.90 3104.49 1448.65 37.34 3343.87 ' 8700.00 8610.38 556.87 3191.72 152.15 PASS ' SS (� _.. _ _. .._ ...... _ p s ' ,4! ; a"q l ._.. ...._..._.. ...._ v - , �7mi,�`i d11SI� I° m P "'a WELLPATH CO Offset Wellbore: KBU13 -8 Offset Well. ath: MSS <0 -8770> Start MD End MD 1 pt , ' .1 U i • " ., • Mo • el Log Name /Comment Wellbore ft1 ift _, _ ___ 0.00 8770.00 Photomechanical Ma etic Standard MSS <0 -8770> KBU13 -8 OFFSET WELLPATH MD REFERENCE - Offset Wellbore: KBU13 -8 Offset Wellpath: MSS <0 -8770> MD Reference: Actual Datum (RKB) Offset TVD & local coordinates use Reference Wellpath settings (See WELLPATH DATUM on page 1 of this report) • Clearance Report AM KSU41 -18X Version #3 BAKER Closest Approach HUGHES MARATHON Page 8 of 31 I E xREFERENCE WELLPATH IDENTIFICATION Operator MARATHON Oil Company Slot ,Slot #KBU41 -18X Area Cook Inlet, Alaska (Kenai Pennins ula) 11 KBU41 -18X Field Kenai Gas Field (NAD83) Wellbore KBU41 - 18X MIBill Pad #41 -18 IIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIMIIIIIIIIIIIIIIIIIIIIIIIIIMIIIIIIIIIIII CLEARANCE DATA - Offset Wellbore: KBU24 -7X Offset Wellpath NaviTrak <173 - 8303'> Facility: Pad #41 - 18 Slot: Slot #KBU24 -7X Well: KBU24 -7X Threshold Value= 0.00-ft t= interpolated /extrapolated station __ ,,�, Ref MD Ref TVD Ref North # Ref East Offset MD Offset TVD Offset North Offset East Horiz C -C Ellipse e ACR t' A • [ft] 1 [ft] [ft] 3 [ft] i [ft] ! [ft] [ft] [ft) I Bearing Clear Dist Sep MASD Statu , ° ft ft] ft 0.00 0.00:; 0.00 0.00 0.00 0.53 -1.56 -59.29 268.49 59.32. 45.82 13.50 PASS 11.02 11.02 0.00 0.00 10.49' 11.02 -1.56 -59.29 268.51, 59.31 45.81 13.50 PASS - 59.29 268.50 59.31 45.81' 13.50 PASS ; ; . 100.00 100.01 0.00 0.00 10.90 11.43 -1.56 0.01, 0.01 99.43', 99.96 -1.07, -59.33 268.97 59.34 45.84 13.51 PASS 300.011 ' 298.09 - - -- - _61.06 �-1r� " 61.15 , �'li�" 1 : 4 �" : '� '� '�w ' 1�� '�. � �' �� 300.00 0 O1, 0.01 297.6 47.82 13.33 PASS 400.00 t _ 400.001 0.00 _ _ __ 0.00 394 02!_ 394.29 __ -_ ___ 6.09 - 66.07 66.59' 53.12 13.48 PASS 500.00 500.01? 0.00 0.01; 489.78' 489.41, 10.27; -76.29 277.67 77.70! 64.02 13.69' PASS 600 600.00 600.01 1 0.00 586.02 584.46 15.34 - 90.46 279.6 93.06 79.17 13.89 PASS . 1 800.00 !; 800.01; 0.00! 0.00 766.87 760.5. 30.7, ` -127.99 283.51 137.41 123.07 14.34 PASS 900.00f 900.01 0.00 0.00 854.25 843.41 41.19 - 153.70 285.00 168.89', 154.23 14.66 PASS 1000.00 1000.01 0.01, 0.01 937.85 921.45 52.18 - 181.54 286.04 204.57 189.68 14.89 PASS 1100.00 1100.01 0.00 0.01• 1012.6 1, 989.35 63.56! -210.61 286.79 246.25 231.09 15.16 PASS ��' � ,�P. 30��- ° 00'� I " , >' 1300.00 I 0.00 � -: .._. .. 1124.65 _ _282.52, I �, , � ... � 0 00; 1168.4. 288.02 344.97 328.97 16.01 PA 1400.00 1400.01 0.00 0.00► 1196.82 108.08 -322.04 288.55 395.82 379.42 16.40 PASS i 1500.00 1500.00 0.00 0.00 1321.59 1255.60 121.98 - 355.92 288.92 448.65 431.99 16.66 PASS t .__ - 488.39 16.69 PASS . � . 0.00 1381.75 1305.25 135 03 387 30 289.22 5 ,,.,, 05 09 v J 488 9 PSS e � W p r 1600 00 1600.00 0.00 t m, . ru r -4, u[5 , 9 r a :, I gy p.. Wl6i , 1 1 , Ffi, h ', u, v1 . r r w _ r N ,.5 u p 147 8 � w! vl = ,I 1 ,,� 1 r!� "a P ,• !I��Ili _ i -5 .: � _:__ rl i r a " ... � �: � � 1 I °�� - � . + II', _ � ;�,�m.. ra �� ' ��v��. 1800.00 s 1800.00 0.00 0.00 1497.47 1395.96 163.60 - 453.19 289.85 628.80 611.64 17.16 PASS 1900.00t 1900.00 0.01 0.01 1457.02 184.25 - 500.22 290.22 693.11? 675.45 17.65 PASS 1 2000.00 2000.00' 0.00 0.01 1674.82', 1532.85 208.70 - 556.52 290.56 755.97, 738.00: 17.97 PASS , 2100 00 i � 2100.01 0.00... 0.00 1763.93 1603.28 229.88 - 290 75 81� 7.9 � i 9 798 91 18 ��. ^ 28 PASS � .._ . � � mil �1� e � �' 3 k ql�� p �gpp � [w �'u r,. .... -a, � .. . F � �'� " �43�t 2300 0 0t . ____. 2300 00' 0.00 0.01 1909.17 1718.89 262.11 - 688.62 290.84 938.40 919.76 18.63 PASS 2400.00 2400.0' , 0.00 0.01 1967.0' 290.8 1001.418 982.62 18.78 PASS - -767.13 88 1065.02 1045.95 19.07 PASS 2500 00 - 2500 00 0.00 , 0.01 2042.07 1821.67 292.63 - 767.1 290 1763.78 309.8. 275.50 -813.31 290.80: 1 -1.16 2119.41 1881.2. y, . 0, 1108.15 19.40 PASS '1 " ? R rovi il� iW ilf -A-,, a r¢ ? ,, I r x , ` 4 . {11 rs p . 2600 00 2 599 98 1 30 Clearance Report KBU41 -18X Version #3 Closest Approach BAKE UGHES MARATHON Page 9 of 31 INTEQ REFERENCE WELLPATH IDENTIFICATION Operator MARATHON Oil Company Slot Slot #KBU41-18X X Area Cook Inlet, Alaska (Kenai Penninsula) KBU41 -18X Field Kenai Gas Field (NAD83) Wellbore KBU41 -18X Pad #41 -18 IIIIIIIIIIIIIIIIMIIMIIIMIIIIIININIIIIIIIIIIIIIOIIIIIIIIIIIIOIIIMININII CLEARANCE DATA - Offset Wellbore:'KBU24 -7X Offset Well ' ath: NaviTrak <173 8303' >� F Pad #41 -18 Slot Slot #KBU24 -7X Well: IJBU24 -7X Threshold Value-A.00 ft inter olated /extrapolated station Ref MD ] Ref TVD Ref North Ref East $ Offset MD Offset TVD, Offset North o Offset East a Horiz , C -C Ellipse ACR A [ft] [ft] [ft] I [ft] [ft] [ft] [ft] I [ft] 1 Bearing I Clear Dist Sep ' MASD Sta o tt I o ft] a ft 4 -10.42 ' 2800.00 2799.45 10.42 2302.33:' 2023.61 351.38 - 920.43 290.47 1243.14 1222.64 20.50 PASS 2900.00 2898.70 20.85 - 18.51 2381.20 2085.10 370.35 - 966.02 290.25 1296.87 1275.90 20.98 PASS 3000.00 2997.47 32.54 -28.90 2491.36 2171.86 397.98 - 1028.03 290.09 1346.6', 1324.91 21.73 PASS 3100.00 3095.6 46.81 -41.5 ; 2568.1 1111111111WEEE 417.77 - 1071.11; 289.82 1393.92 1371.63 22.28 PASS 1 r r+d� ?11j11 r `SI 5 4 474 ' ,. ell l 67.9 2721.47 2352.8; 456.48 3267.91. 3258.75 76.49' - - 1157.54 289.23. 1467.0 1443.60, 23.48 PASS 3300.00 . _ - 1169.42 289.07 1480.42 1456.79 23.64 PASS 1 3400.001 3386.12; 102.65 91.17; 2806.83 24 478.02 - 1206.58 288.60 1523.09 1498.94 24.15 PASS ' 3500.00 3482.55 122.45 - 108.7. 2892.45 2485.1 • 500.31 - 1256.55! 288.22 1566.86 1541.93.. 24.92 PASS �r 2619.21, 545.80 287.55 1653.97 1627.43 26.54 PASS 3700.00 3675.41 162.05 -161.52 3066.33 -1397.55 3800.00f 3771.8 181.86 161.52 3134.36 2671.11 563.94 1397.55. 287.18 1698.63 1671.40 PASS 3900.00 3868.26 201.66 ' 2750.78 591.99 -1459.31 286.9.' 1743.57! 1715.26! 28.31 PASS . 1 ,.. 179.11 3238.98 4000.00t 3964.69 221.46 -196.70 3341.71 2829.65 619.01 - 1519.33 286.73 1787.65 1758.28 29.38 PASS . f '",bared, .' --._ .. i , 1 ui,,s,rL 4 1„ s J.,' °., �'• ,,,.v,.,, �� .a s- .__.'r r _ ... . _ _. .. _ _ __J i -.- A .._._ --. ? f a�,. -231.87 3615.52 3043.93 687.37 - 1675.36 286.45 7 4200.00 4157.55 261.07 86.45'.. 1872.31:. 1840.17 32.14 4300.001 4253.98 280.87 - 249.46 3738.34 3142.8' 714.70 - 1742.85 286.21 1911.29 1877.87 33.43 PASS 4400.00t 4350.41! 300.67 - 267.05 3889.45 3267.41 745.97 - 1822.43 285.98 1946.891 1911.94 34.95'. PASS 4500.00 4446.84 320.47 - 284.6 4125.72 3468.06 791.81 - 1938.33 285.91 1978.60 1941.55 37.05 PASS 1 , ,Iir. ` .. -. _ ,38: r 2.P 6 , 9 s raj -. -- 1 "amvui .;, AI r :° „a i it 4700.00 4639.70 360.08 - 319.81 4453.27'', 3756.70 851.35 - 2081.10 285.59 2030.56 1990.50 40.06 PASS 4800.00 4736.12! 379.88 - 337.40 4734.40 4014.64 894.91 - 2183.81 285.59 2048.18 2006.17 42.01 PASS 4900.00 4832.55 399.68 - 354.99 4937.23 4205.74 921.15 - 2246.42 285.41 2059.69 2016.25 43.4 PASS 1 5214.63 4473.07 949.64 - 2314.42 285 2771 5000.00 4928.98. 419.49! 372 58 5 2063.90] 2019 04 .. , h 1 f '2, :., I ' rw { V tl11 °'4 11 pry „ 1 o .1., .4,4.' •, ._ ' ,,? .T%,_,,1,1 r ,1a 44.86 PASS " °y, r5 - , nk a. as „fo v i mary x1 1 1 4 i t 1 ;: i 1 ry p w, � 1'�tl� >,n � ' ; I �' ; 4 ° aNlh _ � ,- � ,,.�4 m , m 1 k�.� , s.. � � �smmv m� � -, 454 88 -404.01 5525.45 4777.78 972.10 -2371.06 284.73 2059.49 2012.63 46.86 PASS - 5200.00 _ 5121.86 459.05 407.7 5548.66 4800.71 973.20 - 2374.53 284.65 2058.12 2011.03 47.09 PASS 5300.00 5218.76 477.50 - 424.11 5746.91 4996.96 981.55 -2401.09 284131 2052.25 2004.17 48.08 PASS F 5400.00 0 5316.27', 494.05 - 438.81 5926.15 986.60 - 2415.30 283.99 2041.80 1992.87 48.94 PASS - ,, 1 4 'i,. v 1;az ] .4„ . I�, 1 4 1 x fm Ih1 71 a r I i9 " y , .r't e .. '°m�� 1 + r'� vlr .242 2.,0, �: , � '> -um� Po� ^k1 ° l ., Ip!i! u�,�,�t r °7r "_? a..w'u? , m; �. ., r`„ 4 : r n 1 a 1 1 u v 1 r 4 -ma F 3 1 . m - w M Clearance Report Will KBU41 -18X Version #3 BAKER MARATHON Approach HUGHES Page 10 of 31 INTEQ 'REFERENCE WELLPATH IDENTIFICATION�� Operator MARATHON Oil Company Slot Slot #KBU41 -18X `Area Cook Inlet, Alaska (Kenai Penninsula) KBU41 -18X Field Kenai Gas Field (NAD83) Wellbore KBU41 -18X 'nOZIIIIIII Pad #41 -18 CLEARANCE DATA - Offset Wellbore: KBU24 -7X Offset Well ® ath: NaviTi ak <173 - 8303 Facili :Pad#41 -18 Slot: Slot #KBU24-7X Well: KBU24 -7X Rn _ ThresholdValueO.00ft =irate, ±olatedlextra olated station Ref MD Ref TVD Ref North Ref East Offset MD ] Offset TVD Offset North Offset East Horiz C-C Ellipse ACR A [ft] 1 [ft] I [ft] [ft] [ft] 3 [ft] [ft] [ft] Bearing i Clear Dist Sep « MASD Sta i ft ft ft - 463.11 6147.66 5600.00 5512.88 521.40. 5396.65 990.61 -2428.09 283.43 2023.58 1973.82 49.76 PASS ' 5700.00 54 - 480.52 6350.0 -472.67 5496.23 992.21 - 2433.61 283.20 2017.49 1967.29 50.20 PASS 5700.00 5611.83: 5 5598.69 993.83 - 2439.19 283.02 2013.47 1962.91'. 50.57 PASS 5900.00 ' 5810.70; 547.91 - 486.64 6458.31 5706.81 995.55 - 2444.78, 282.8" 2011.34 1960.48 50.86 PASS ' �.._.�... .,_y. , 6100.00 6010.39 555.84 - 493.6' . gi p 6670.601 5918.85 998.35, -2454.68 : . 1 2012.39 1961.14 51.26 PASS , , 6200.00 6110.38 556.87 _ -494.61 6775.54 6023.70 999.63 - 2459.14 282.71 2015.68 1964.33 51.36. PASS 6202.62 , 6113.01! 556.87 - 494.61 6778.24, 6026.39 999.66 - 2459.25 282.7 2015.80. 1964.44 51.36 PASS 6210 38 556.87; -494 61 6879.0 6300.00 l 6127.11 1000.95 2463.32 282.71 2019.91` 1968.51 51.40 PASS 6343.38, ' - 2470.93' 6500.00 6410.38 556.8 ; -494.60 7095.49 1004.11 282.75 2027.41 1975.95 51.47 PASS ' 6600.00 p 6510.38 556.87! - 494.60 7194.73 6442.57 1005.60 - 2473.92 282.77 2030.68 1979.14 51.54 PASS 6700.00 p 6610.38! 556.87 - 494.60 7295.95 6543.74 1007.05 - 2477.08 282.79 2034.05 1982.43 51.62 PASS 6800.00 p, 6710.38, 556.87 - 494.60 7399.83 647.57 1008.38 -2480 14 282.81 2037.20 1985.50 51.70 PASS . ^,f 1 w a w a [ 1,C ,„ �`r x 13 ,II1 W �" I ! 1 pll j B9 Tr s . , 1 6857.29 1011.07 -2485.86 282.85 2043.09 1991.23 51.87 PA 1 7000.00 6910.38.. 556.87 -494.60 7609.66 7100.00 * 7010.38 556.87 - 494.60 7715.30 6962.89 1012.37 - 2488.21 282.87 2045.54 1993.58 51.96 PASS 7200.001 7110.38 556.87, - 494.60 7816.76 7064.33 1013.82 - 2490.23 282.91: 2047.80 1995.73 52.07 PASS 7300.001 7210.38 556.87 - 494.60 7918.83 7166.3: 1015.29 - 2492.23 282.93 2050.03 1997.8' 52.19 PASS _ n a e v.. . .., -, ,. w w ,� -. ._ ra e „ I., d, ., .... w 'Et". J. I:� .�. - , 1 I J rt k1 . � ,..a u i I,. , ... -._- - : ,.n ...,: ? .. .:. .. 4� -.- r�,. � III ,. �, I. �. m ,�. �. r, ,, . -,. w. . ®.� 1 ,•... , r fy .,, Y"r. �.. x.� �3 c u + Ph I . l .. n. ! .. ._ I h:w ., �,.. m - ...�a..fw � � p y I��M .,,.,a t...,s �, ... .. .�a walm 'I, �e 7 .. ,.. an�N. - ,. , 7 i n ... vF � :� ... r.r_c. rW "'! . �, �G II 4 ��`� . LLR..,.. �u'b5�. i�f�..ra.�< . ��a�$% La .1.11q -,. - � ' .. o Ena ....w.,:,y,W U,ILV:LJa. Sfu�. -.� w .... I.. k, s. .< L 7400.00t 7310.38 556.87 -494.60 8022.86 7270.38 1016.88 - 2494.03! 282.96 2 1999.75 P ASS 7500.00] _ 7410.38; 556.87 - 494.61 8123.7211.1111111MIC 1018.49 - 2495.65 282.99 2053.99 2001.55, 52.44! PASS 7600.00 7510.38 556.87 - 494.60 8232.12. 7479.58 1020.22 - 2497.15 283.03 2055.69 2003.14 PASS 7700.00 7610.38 556.87 - 494.61 8303.00 7550.45 1021.33 -2497.94 283.05 2057.35 2004.57 52.78! PASS 7900.00 7810.38 556.87 ' ,, .= -.,_. µ r 1 ^ ^ :_v1i l ^ ��,.. i � , -494 61 ( 8303 00 7550 45 __ _ _ 1021.33: 2497.94 283.05 2072.84 2019.29 PASS 8000.00_,t 7910.3: 556.871 -494 61 - 2497.94 283.05 2087.74 2033.87 53.87 PASS 8010 38 8100 00 , 556.87 494 60 8303.00 7550.45 1021.33 - 2497.94: 283:05 2107.28 2053.14 54.14 PASS f 8303.00 55.5 1021.33 - -2497.94 , r x t, a, . 2076.97 38 PA = 8200.00 8110.38 556.87 494.61 8303 .00, yJ r 7550.45 1021.33 �� 283 OS I 1 �^I r 1 #, � _ � 2y 1 0 " I OS`�1 � ,":Ir54 °� ,e : �SS ' " '`� ° �r , ' � 14,, ..._. .. _a_... ... ._.._ v _ W ..... .._..... .._... _ ._ w,. v . �, ,., � 1 mt ,r 1 , ",!. - �I �1 ^I_.' " � ANA Clearance Report mai KBU41 -18X Version #3 RAKER Closest Approach HUGHES MARATHON Page 11 of 31 INTEQ REFERENCE WELLPATH IDENTIFICATION , Operator MARATHON Oil Company Slot Slot #KBU41 -18X Area Cook Inlet, Alaska (Kenai Penninsula)I KBU41 -18X Field Kenai Gas Field (NAD83) Wellbore KBU41 -18X nellil Pad #41 -18 IIIIIIIINIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIMIIIIIIIIIIIIIIOIIIIIIIIIIIIIIIIIII CLEARANCE DATA - Offset Wellbore: IKBU24 ='7X Off+2t Well ath: NaviTrak <173 - 8303'> acili :,.Pad #41-18 Slot: Slot #KBU24 -7X Well: KBU24-7X ,; Threshol Value =0.00 ft 1. = interpolated /extrapolated station Ref MD Ref TVD Ref North Ref East Offset MD Offset TVD Offset North Offset East Horiz C -C 1 Ellipse ACR A r [ft] [ft] [ft] [ft] [ft] [ft] [ft] [ft] Bearing Clear Dist Sep 1 MASD Sta ° ft ft I ft] 8400.00f 8310.38 556.87 - 494.60 8303.00 7550.45 1021.33 -2497.94 283.05 2192.40 2137.64 54.76 PASS 8500.00f 8410.38 556.87! - 494.60 8303.00 7550.45 1021.33 - 2497.94 283.05 2229.03 2174.13 54.91 PASS 8600.00 8510.38 556.87 - 494.60 8 7550.45 1021.33 -2497.94 283.05 2269.49 2214.45 55.04 PASS _ 1021.33 - 2497.9' 283.05 2313 56 2258.40 55 16 PASS 8700 00 8610 38, 556 87 494.6 � 8303.00 7550.45 r xi mrelu a ry i _ _ � T 1 1 r �'� r �;t lsf �� 1_ „HOLE & CASING SECTIONS' Offset Wellbore:' KBU24 -7X Offset Wellpath: NaviTrak <173 - 8303'> String/Diameter Start MI) End MD Interval Start TVD End TVD Start N/S Start E/W End N/S End E/W - [ft] [ft] [ft] [ft] [ft] [ft] [ft] [ft] [ft] 20in Conductor 0.00 161.00 161.00 0.53 161.52 -0.95 -36.15 -0.56 -36.18 13.375in Casing Surface 0.00 1629.00 1629.00 0.53 1497.02 -0.95 - 36.15 59.68 -179.70 9.625in Casing Intermediate 0.00 6068.00 6068.00 0.53 5317.13 -0.95 - 36.15 301.04 - 756.82 WELLPATH COMPOSITION Offset Wellbore: KBU24 -7X Offset Wellpath: NaviTrak <173 - 8303'> Start MD End MD Positional Uncertainty Model Log Name/Comment , ft [ft 0.00 1576.00 NaviTrak Standard NaviTrak <173 - 1636'> KBU24 - 7X 1576.00 5985.00 NaviTrak Standard NaviTrak <1687 -6077'> KBU24 - 7X 5985.00 8303.00 NaviTrak Stand and NaviTrak <6106 - 8303'> KBU24 -7X -- - -- - - -- -- � _. - - - -- - - 'OFFSET WELLPATH MD REFERENCE Offset Wellbore: KBU24 - 7X Offset Wellpath: NaviTrak <173 - 8303'> MD Reference: 'Rig on Slot #KBU24 - (RKB) Offset TVD & local coordinates use Reference Wellpath settings (See WELLPATH DATUM on page 1 of this report) • AA Clearance Report r KBU41 -18X Version #3 BAKER Closest Approach GHES E MARATHON Page 12 of 31 INTEQ REFERENCE WE1 LP ATH IDENTIFICATION Operator MARATHON Oil Company t , Slot Slot #KBU41 -18X , Area Cook Inlet, Alaska (Kenai Penninsula) Well KBU41 -18X ' Field Kenai Gas Field (NAD83) Wellbore ; KBU41 -18X Facility Pad #41-18 CLEARANCE DATA - Offset ellbore 1011X Offset Well .'aft: GMS <0 -5400> Facility: Pad #41 -18 Slot: slot #KU11 -17 Well: K Th U11 17 reshold Value=0.00 ft :. - rote :' °la ted /extra .plated station - Ref MD , Ref TVD Ref North Ref East ] Offset ri MD Offset TVD Offset North Offset East Hoz C -C El ACR • [ft] t [ft] [ft] [ft] [ft] [ft] [ft] [ft] Bearing Clear Dist Sep MASD St. - ° n ft 1 ft ft 0.00f 0.00 0.00 0.00 0.00, 3.00 -91.42 195.89 334.00 320.78r PASS 100.00f 100.00 0.00 0.00 99.53 102.53 - 320.81 -91.52 195.92 333.62 320.38 13.23 PASS 200.00f 200.00 0.01 0.00 199.91 202.89 -319.97 -91.49 195.96 332.80 319.48 13.33 PASS 300.00 i 300.01' 0.01 0.01 302.3. 305.35 - 318.6' -9l.' 196.01 331.54 318.03! 13.51 PASS ._._.. .... _ _.... , I 1 .� _... ar "�„.. n *f "3N'! " "± 500.00 500.0 0.01; 0.00 499.7: 502.72.c Ij' -88.97 195.67 329.48 315.46 14.02 PASS 730.11 308.5 193.03 318.11 �� PASS 14.63 - 700.00 700.00 0.01 0.00 728.1. I -83.14 194.0 325.78 302.71 15.41 PASS 0.00 620.14 -314.35 800.00 800.00, 0.01 0.00 840.67' 840.52 - 299.45 -51.91 189.83 306.60 290.64 15.96 PASS 1000.00)1 1000.00 0.001 0.01 1048.3' 1040.37 - 274.2' -1.59 18Q.33 277.20 260.04 PASS 1100.00f 1100.00 0.00 0.00, 1145.5 1132.71 - 260.37 25.32 174.45! 263.64 245.78 17.86 PASS 1200.00 1200.00 0.01 0.00! 1241.76 1222.83 - 245.63 55.68 167.23', 252.90 234.14 18.76 PASS 1300.00 1300.00 0.01; 0.00 1336.5. 1310.2 -229.36 88.60 158.88 246.09 226.13 19.96 PASS r 0.01 0.00 1406.96 1374.0- -216.10 115.1 1377.63t 1377.63 0.0 - 115.19 151.94 244.91. 223.92 20.99 P � 1400.001 1400.01 0.00 0.00 1426.00 1391.13', - 212.41 122.73 149.98 245.48 224.16 21.32 PASS 1500.00f 1500.01 0.00 0.00 1510.21 1465.95 -196.21 157.81! 141.19 254.08 231.38 22.70 PASS 1600.00t 1600.00 0.00 0.00 1600.01 1545.1 ' - 178.60 196.31 132.30 271.01 247.20' 23.81 PASS ea..; 4 - ;,,. 'W =Ir. O.r .. .� ., ... o. 1 r1 ::-..,,..,?,,11,1 n: k E wp Jrv _�' w. 0 �� 1 r ^ , r._ . „, 1,11 _,fmi,�...m rk ... ._, a .�... .. _,, a , E, w. _ m 4, m -:, ,. .. ,,I:.� =� 1 r . 1'1°1-• '0'110'0 , 11..;u 4 i .. . r �_, .. - ,= m m. .MM . . .., 1. . - . - ._. . .. i�_a - .i? > - .. - x r ,,,.. a ... n .. �. p � mV 9. ..- � ,. P� a : -.: ti .. � ,..... N�h ,..., . d�1 �.. ... - ,. .�v�1 �, as. ..� � - . .. �.a � .x�, � . � �J � . 1.�� . , , ,_ �mal ;1. �W ._.. � _� � � _ � u � [ 1 . � .,, Rr ��- � sT9, , r � L � � , 180 1 800.00 _ - 0.00 1697.17 -144.02 271.88 117.91 '...- 324.40 ) � 5 298.69 t PASS � ' 1900.00 _ 1900.00 0.01, 0.01 1862.36 illIll..EEIEE - 125.90 310.81 112.05 357.80! 331.26 26.54 PASS 2000.00 2000.00 0.01 0.01 1951.3' 1853.6 - 108.51 349.15 107.27 393.83 366.53111MM PASS a „ , ; 4 06 27 99 PASS „! 386.44 1 11 432.05 40 2100 00• 2100.01 0.01 0.00 0 7. -91.61 44 103 34 .. r P1 vv ; r _ .._.�_.,._ I',�w� __._...� _ 11 @- . _.__._._.:_. _._ � _.._ � _ - ____• _:. .. _. . ._P c:,v'%. ,,, ' J.._. II 1 �� 1 d 1 I 1 1 1 ._A. r k a � i t e. , 2300.001;_ 2300.01, 0.0!, ___ _0.00 2211 16 2081.78 - -57.27 462.37 97.0 � 4 � � �� . � - 7 97.06 514.48 485.111 29.37 PASS 2400.00 2400.01 0.00 0.00 2298 4- 2158.32 - 40.17 500.65 94.59 557.38 527.29 30.09 PASS 2600.00 2599.9: 0.00 .6: 2457.95 2297.0 -24.89 8.70 572.87 91.00 649.15 61772 . 31.43 PASS 1 t y1^ 1 § 1� ,1 1681 1 *7^ 1 I R 1 as•-- M Clearance Report KBU41 -18X Version #3 BA MARATHON Closest Approach HUGHES Page 13 of 31 INTEQ REFERENCE WE .. - w . • .. ,.. ;. � A. , _ LLPATH IDENTIFICATION ,L. Operator MARATHON Oil Company Slot Slot #KBU41 -18X 1 Area Cook Inlet, Alaska (Kenai Penninsula) WM= KBU41 -18X Field Kenai Gas Field (NAD83) Wellbore KBU41 -18X Pad #41 -18 IIIOIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIII C DATA - Offset Weobore:.1(U11 -17 Offset Well s ati GM <0 - 5400 > Facili P a d #41 - 18 Slot slot #KU11 -17 Well: KU11 -17 Threshold Valu0:00 ft,--t77- e = interpolated /extrapolated stat -77 Ref MD Ref TVD r Ref North Ref East Offset MD a Offset TVD s Offset North Offset East Horiz ] C -C Ellipse ACR A I [ft] (ft] [ft] [ft] [ft] [ft] [ft] (ft] Bearing f Clear Dist Sep MASD Status ° ft ft ft 2800.00 2799.45 ? - 10.42 2655.48 2470.07 28.55 660.49 88.57 747.59. 33.87 PASS 2900.00 2898.70! 20.85 -18.51 2741.46 2546.03 44.58 697.46 88.11 798.47 763.58 34.89 PASS 3000.00 2997.47 .. 28.90 2826.55 2621.28 60.38 733.88 87.91 850.96 815.01 35.95 PASS : - 2690.27 74.71 767.69;. 88.03.. 905.53 868.54 36.99 PASS 3100. 3095 46 -41 57 2904.7 t 3267.91 3258 75 76.49 -67 9 3046 85 2815.92 99.71 829.29 88.5 1 0.83 961.71 " 39.12 PASS t 3300.00 3289.69 82 85 -73.58 3072.92 _ 2838.98 104.21 840.56 88.6 # 1019.43 979.90 39.53 PASS 3400.00 1 3386.12 102.65 _ -91.17 3168.52' 2923.74111111111111 881.4' 88.91 1077.08 1036.05 41.03 PASS 3500.00 3482.55; 122.45 - 108.7. 3250.47' 2996.71 136.12 915.57 89.2' 1133.78, 1091.42 42.36 PASS I 3700.00 3675.41 162.05 - 143.93! 3399.98' V 3129.3 1 160.87 979.27 90.0. 1248.91' 1204.01, 44. PASS 3800.00 3771.84 181.86 -161.52 3485.83 ... ,` ; 3205.83 175.06 1016.29 90.33 1306.77 1260.39 46.38 PASS 3281.41 188.98 1052.55 90.59 1364.39 1316.54 47.85 PASS 3900.00 3868.26; 201.66 - 179.11 3570.80 4000.001 3964.69 221.46 - 196.70 3647.61 3349.75 201 48 1085.30 90.89 1422.00 1372.77 49.22 PASS ,., i . i : �..._._...._.._.�..` ' s I�t °1 �.. e �� 1r4 �_ ....a� v VO+ zt VI r Y] �J a9r °a IUr .s _- �'�" nom, . 4200.001- 4157.55 261.07 - 231.87 3791.93 3477.63 224. 1147.98 91.51 1538.70 1486.84 51.87 PA 4300.00 4253.98? 280.87 - 249.46 3857.17 IIIIIIIIEEEEE 235.41 1176.93 91.83 1597.93 1544.83 53.10 PASS 4400.001 4350.41 300.67, - 267.05 3926.01 3595.50 246.60 1208.07 92.11 1657.94 1603.54 54.41 PASS 1 4500.001 4446.84 320.47 284 6' 4004.29 3664.01 259 70 1243.61 92.28 1718.16 1662.28 55.88 PASS � - ..� �, '� ' r - _. mss .i,::.l r ,._ 44.. � . ., , +..:. ...,.�, ... - ,.1 .- x ...., ..... Y�} i 5 ^r ,u � .. �.v�... �l 0 1VI .,a hIl,� - � � . � 12 �- ,. .,,,�der�. 717.,'' �k. f +. � �.� I s � m �; ' i i � ��.Z,3� Vr .,. .w .. s• „ .,��w � ._..,. "V ul �,:4 $�. . - ,> n�,fi lrY .x:.h,, , d,Wi .,�� ,...�«s2. �.. __ - � kr. a... r �. :M.ro, f ..r,� -�... sr�. . r r..- � .� � .. r .x ,. V. ;:_ 470 4639.70 360.08 - 319.81! 4127.48 �� 279.95 1300.78 92.83 1840.37 1 58.29 P 4800.00 4736.12 4736.12 379.88 -337.40 4191.37 3826.44 290.40 1331.16 93.07 1902.53 1902.53 1842.98 59.55. PASS 4900.00 4832.55 399.68 -354.99 4255.79 3881.89 300.99 1362.21 93.2' 1904.45 60.82 PASS 5000.00. 4928.98 419.49 372.58 4323 93 3940.34 312.02 1395.45 93.48 2028.52 1966.35 62.16 PA P I - - ; , . T41,t,�^uR, 1 ,+ s _qj I .. Ii'. 1V ¢ 11tl q 59BF Mly l �" r ? ry 4 SS %5 '. z._..�.. , r ,IIIIIIMEMII_ 33332 q .r "x� .emu I, s`nr4: `x�r�;ly d�4 ..�sl� Fv ` �': I , .:. � ., III 4 '., �� w .+. �I + u��,._y- LL -... �*a`"E_a:.�.��.s "a��' _�,- 5178.73 - 5101 33 454.88 404 01 4459.05 459 05 4056.16 d 1461.57 93.72 . 2141.84 2077.03 64.81 PASS G 5200.00 5121.86 459.05 - 407.72, 4474.651 4069.54 336.16 1469.23' 93.75 2155.32 2090.20 65.11 PASS - 347.11 1504.29' 93..87 2218.06 2151.59 66.47 PASS 5300.00 l 5218 76 477 2411, 4545.92 4 -438 81; 4 4191.6 1539.62, 93.9' 2279.79 2212.02 67.77 PASS 5400.00 5316.27 494.05 M Clearance Report KBU41 -18X Version #3 BAKER nal Closest Approach HUGHES MARATHON Page 14 of 31 INTEQ REFERENCE WELLPATH IDENTIFI..CATION Operator MARATHON Oil Company Slot Slot #KBU41 -18X Area Cook Inlet, Alaska (Kenai Penninsula) KBU41 -18X Field Kenai Gas Field (NAD83) Wellbore KBU41 -18X 1=1111111 Pad #41 -18 IIIIIIIIIIIIIIII s . ,: , .. , ,. ..... , .. CLEARANCE DATA Offset Wellbore: KU11 -17 Offset Wellp ath GMS <0 -5400> acili : Pad #41-18 Slot: slot #KU11 -17 Well: KU11 -17 Threshold Value =0:00 ft 1' = interpolated /extrapolated station Ref MD Ref TVD 1 Ref North Ref Easst Offset MD [-Offset TVD Offset North Offset East Horiz C -C Ellipse ACR A • [ft] [ft] l [ft] [ft] [ft] [ft] [ft] [ft] Bearing Clear Dist Sep MASD Status x [ i , ° ft ft ft 5600.00 5512.88, 521.40 -463.10 4772.04 4323.74 381.85 1616.64 93.8' 2399.75 2329.74 70.01 PASS 1 ' ! PASS 5700.00 5611.83 532.18 -472.67 4866.71 4404.56 396.73 1663.6 93.63 2457.57 2386.18 71.39 = 5800.00 IIIIIggllEg 541.02 -480.52 4956.15 4481.21 410.62! 1707.60 93.41 2513.48 2440.86 72.62 PASS 5900.00 5810.711 547.91! - 486.6 5041.53 4554.41 423.82 1749.51 93.18 2567.89 2494.18 73.70 PASS 1 1 6100.00 6010.3'', 555.8'; 493.68 5224.99 111111MMESE 450.29 1839.25' 92.5' 2671.88 2595.99 75.89 PASS 6200.00t 6110.38 556.87 - 494.61 5333.19 4805.83 464.99 1891.49: 92.21 2720.98 2643.83 77.15 PASS 6202.62 6113.01 556.87 - 494.60 5336.08 4808.34 465.3 1892.88 92.21-1 2645.06 77.18! PASS 6300.00 6210.38 556.87 - 494.60 5400.00 4863.88 473.78 1923.37 91.9 2768.85 2691.17 77.6: PASS � � P 1 ` i J 4 '� Id" � ^ . ,:� .nti'�rp 7 r .__ rh rt ]is 6500.00 , 6410.38 5400.00 91.97 2871.43 2794.86 76.58 PASS 6600.00 6510.381 556.87 - 494.60 5400.01 4863.88 473.78 1923.37: 91.97 2926.51 2850.49 76.01 PASS , 6700.00 6610.38 556.87 494.61 5400.00 4863.88 473.78 1923.37 91.97 2983.91 2908.47 75.44 PASS I 6800.00 6710.38 556.87 -494.60 5400.00 4863.88 473.78 1923.37 91.97 3043.52. 2968.65 74.88 PASS IS., „ , ,, } y ..a. -_'+ 1 ' 1 ,M ] 9,. E 4 t �140e ,��iw X16 ' � .r _ ae 1 7000.00 6910.38 556.87 -494.60 5400.00 4863.88 473.78 1923.37 91.97 3168.86 3095.08 PA _ 7100.00 7010.38 556.871 - 494.60 5400.00 4863.88 473.78 1923.37 91.97 3234.34 3161.10 73.24 PASS 7200.00 7110.38 556.87 - 494.60 5400.0' 4863.88 473.78 1923.37 91.9 3301.55, 3228.83 PASS `; 7300.00f 7210.38 556.87 - 494.61 5400.00 4863.8: 473.7:- 1923.37 91.97 3370.3' 3298.16 72.23! PASS 4 �.�,�„ t 3:,-N. w I + ,. r�ry � w1 +r _ _ L a3 1e __ _. � '� � 41 9 II P, d.4 0 Ar - �m�s.'nAi�.41 ,r � ?', b �ia 't ''.. , ��7400.00 7310.38 556.87 - 494.60 � 5400.01: 4863.88 473 1923.37 �� 91.97 3440.76 3369.01 PASS 7500.00 7410.38 556.87 - 494.61 5400.00 4863.88 473.78 1923.37 91.9 IIIIIIIIEEU 3441.2 71.30 PASS 7600.00f 7510.38 556.87 - 494.60 5400.00 4863.88 473.78 1923.37 91.97 3585.73 3514.85 70.88 PASS 7700.00f 7610.38 556.87 - 494.60 5400.00 4863.88 473.78 1923.37 91.97 3660.16 3589.68 70.47 PASS � ,' , 'P. =A n f r x. �^ 1, 'ilk. �.. p, r, E . .: ��1'}� �` � rs. °� v ,I,,. r..,v�i. ,o�.!� rr � +dl�"� ,�° u 'y � ®.:, �. �Sdt,��1,1,�� 1:It..1 r ; , F �. jj 7900.00f 7810.38 556.87 -494 61 5400.00 4863.88 473.78 1923.37 91.97 3812.53, 3742.78 69.75 PASS 8000.00 7910.38 _ 556.87 494.60 5400.00, 4863.88 473.78 1923.37 91.97 3890.33 3820.91 69.42 PASS 8100.00 8010 38' 556.87 - 494.60 5400.00 4863.88 473.78 1923.37 91:97 3969.12 3900.01 69.12 PASS 8200.00 8110.38 556.87 494.60 5400.00 4863.88 473.78 1923.37! 91.97 4048.86 3980.0 68.84 PASS M Clearance Report KBU41 -18X Version #3 BAKER Closest Approach HUGHES MARATHON Page 15 of 31 INTEQ REFERENCE WELLPATH IDENTIFICATION Operator MARATHON Oil Company Slot Slot #KBU41 -18X Area Cook Inlet, Alaska (Kenai Penninsula) KBU41 -18X Field Kenai Gas Field (NAD83) Wellbore KBU41 -18X Pad #41 -18 CLEARANCE DATA - Offset Welibor-e:- KU111.17 Offset Well ath: GMS <0 -5400> _ ...x.. FacitPad #41 -18 Slot: slot #KU11 -17 Well: KU11-17 Threshold Value 0.00 ft - j = interpolated /extrapolated station Ref MD Ref TVD Ref North Ref East Offset MD k Offset TVD Offset North Offset East Horiz C -C Ellipse ACR AC�` [ft] [ft] i [ft] [ft] [ft] i [ft] [ft] [ft] Bearing Clear Dist Sep MASD i Status t ° ft ft ft 8400.00 8310.38 556.87. - 494.60 5400.00 4863.88 473.7 1923.37 91.97 4210.92 4142.56 68.36 PASS 8500.00 8410.38 556.87! - 494.60, 5400.00 4863.88 473.78 1923.37. 91.97 4293.15! 4224.99 68.16 PASS 8600.00 8510.38 556.87 - 494.60 5400.00 4863.88 473.78 1923.37 91.9 4376.12 4308.1 , 67.98 PASS 8700.00 8610.3: 556.87 - 494.61 5400.01 4863.88 vN 473.78 . 1923.37 . 91.9 4459.79 4391.97 67 82 PASS I s �' b 9 �� m �� 914 11f I fl WELLPATH COMPOSITION `' Offset Wellbore: KU11 -17 Offset Wellpath: GMS <0 -5400> Start MD End MD Positional Uncertainty Model Log Name /Comment Wellbore jfti ft 0.00 5400.00 SRG Standard GMS <0 -5400> KU11 - 17 =OFFSET WELLPATH MD REFERENCE - Offset Wellbore: KU11 -17 Offset Wellpath: GMS <0- 5400 >'' MD Reference: Actual Datum (RKB) Offset TVD & local coordinates use Reference Wellpath settings (See WELLPATHDATUMon page 1 of this report) M Clearance Report KBU41 -18X Version #3 BAKER ni. Closest Approach HUGHES MARATHON Page 16 of 31 INTEQ REFERENCE WELLPATH IDENTIFICATION _ .___m Operator ` MARATHON Oil Company Slot Slot #KBU41 -18X Area Cook Inlet, Alaska (Kenai Penninsula) MOM KBU41 -18X Field Kenai Gas Field (NAD83) Wellbore KBU41 -18X MIMI Pad #41-18 `CLEARANCE DATA - Offset Wellbore: KBU33 -7 Offset Well' ath: MSS <O -7910> a acility: Pad #41 -18 Slot. slot #KBU33 -7 Well: KBU33 -7 Threshold Value=0.00 ft interpolated /extrapolated station Ref MD Ref TVD Ref North Ref East 1 Offset MD ] O - ffset TVD ; Offset North Offset East Horiz C -C Ellipse ACR A li [ft] 1 [ft] 1 [ft] i [ft] [ft] ' [ft] [ft] 1 [ft] Bearing Clear Dist Sep 1 MASD Status .. . _ __.__� .. .. _ - �_ , . -_ . ._ �a w ._ .._... ,.. .._ �, _.. _ . , _ - .�_ . _ _ _ l °l [ft] [ft] [ft] 0.001 0.00 0.01 0.00 2.00 0.00 - 237.09 -187.69 218.37 302.39 289.72 12.67 PASS 100.00] 100.00 0.00 0.00 102.00 100.01 -237.09 -187.69 218.37 302.39 288.99 13.40 PASS 200.00t 200.01 0.01 0.00 202.01 200.01 - 237.09! - 187.69 218.37 302.39 288.80 13.59 PASS 1.Y,, _ - nF I s x tt. 8 , 300.00 300.01 0.01 0 01 1 1 i 300.01 237.0 28 -187.69 218.37 302 39 Tr y PASS a T , s� 13.80 PA A s :. 3 500.00 500.01; 0.01, 0.00 502.19 500.19 - 237.09 -187.69 218.3 302.39 288.12 14.27! PASS 0.00 611.63 609.53 PASS -234.19 ' - 188.46 : 218.83 300.76 285.75 15.01 PAS ? 600.00 600.00 0.01; - 700.00 700.0 j 0 .00 0.00 _ 721.1 0 1 718.68 -225.05 - 191.02 220.32 295.77 280.15 15.62 PASS 800.001 800.01 0.011 0.00 821.6 818.27 - 212.70 - 195.43 222.58 289.43�� 16.15 PASS 1000.00 1000.01 0.04 0.01' 1024.98 1017.89 -176.' ' ! - 208.79 229.80 273.9 256.8 111111111111 PASS 1100.00 1100.01] 0.01 0.04 1119.85 1109.92 - 155.88 - 219.09 234.57 269.07 ' PASS 1177.81 1177.81 0.00; 0.00 1190.30 138.71' -228.86 238.78 267.61 249.78 17.83 PASS 1195.84 1195.8 0.01 0.00 1208.08, 1194.5 - 134.25 - 231.54 239.89 267.65 249.72 17.92 PASS 1294.42 - 104.31 -248.22 2 47.21 269.31 1300.00t 1300.00 0.01 0.01 1313.70 250.63 18.68 PA 1400.00f 1400.00 0.00 0.00 1401.55 1376.04 -75.21 - 262.63 254.02 274.2 254.58 19.66 PASS , 1500.001' 1500.04 0.00 0.04 1485.21, 1452.43 - 45.70 - 279.68 260.72 287.35 266.43 20.92 PASS 1600.00 1600.00 0.01 0.00 1568.74 1526.99 -13.08 - 298.49 267.49 307.57 285.51 22.06 PASS 9Y Y ... !, I - 7` ..Pi , r s -. r :.,''',6 : . .. 6 S ti . , _. , .:,, iit ! 4 < .k = � � '. ,II : . , „ ; . .,. 1 ,. 5„ r I , ." w 'alai; i,i ?�. 1 I 1 ", . , _. -i Sv.., �. , i,.• 1 4 f .,. I ,. I r -, &,� _�.. „r -bee �� 1 J.N _.. � f� : ,IY.ESF.- � e ... �il .. -„ -. a e, .f {- .. 11: .. �k � w :: .,.:;ern n -�: .I. - v::p .. `�. �,, r . .,._ ..,. i5. � ... r - Y... 11 �... ,,',1''', 1 �EE. r. � 1 �� . .., .. '� ,,, . _ �... I�..r�lw 1 e a� . -...d_ .. s. -.- _. li. N ,,. _..a. . 11a .:� . � m�[. ..a w; - � ; , f. �,:, .. - �,� .} r �.� 4. , � .all 9 '. �� . ... .w: p� f1714,0 . bI sti�� »,.��W�r��,� .1,� „,fl: I: � �� I I,I I 1 � 27Y a,� II � _ VV � 31.:1 n �.`�� 1800.00 1800.00 _ 0.01 0.00 1719.67 1657.06 53.11 - 336.80 278.96 369.71 344.96 24.75 PASS 1900.00. 1900.00 0.01 0.00 1805.75 1729.66 92.33 - 361.30 284.34 409.98 383.55 26.43 PASS 1,III.X i ➢� uiuuaIlAt11 0.00 0.01 1888.5 1799.67 129.80 - 384.72 288.6 452.76 424.82 27.93 PASS 2100.00-' 2100.01 0.00 0.04 1972.09 1869.98 168.09 - 408.62 292.36 498.14 468.73 29.41 PASS t 'I': _ = AM r ''y _ 1 f 4,'-'7°, � .. 1 1 1 {m,� 1, ' , '' 1 y Y y . 2300.00 � 2300.04 0.01 0.00 . 2154 961 2024.77 = 1 _. 4 F._ c ' O YY,Sd {. 4 , n �.. 77 251.54 -458.64 298.74 591.07 558 31 PASS 2400.00 2400.01 0.00 0.04 2243.90 2100.70 291.71 - 481.83 301.19 637.83 603.52 34.31 PASS __ - 2500.00 ' 2500.001 . 0.01 O.OI1EUREIMMIN R 330.84 - 504.42 303.26 684.94 649.15 35.79 PASS 2600.00 f 2599.98 -1.16 2418.8' 2250.56 369.89 526.96 305 03 731.04 693.76 37.28 PASS , J , : _ . ', II W r ;f m I i e .� ' , ,. Y fs Y w Y � .. :, +,, � . : , , � Y ,, ; , , " . « a I VI �k {k�6y,.1.. � -, r ti .� tip 119.1 1 r. s {. Y ", Y , ., b r , r.r .;, ^ . , ,, a 1 -:: 1" 11 1 k „ 1 ,:'„ - Y . k , z,.-. r , " 'e.,:.. , n i 1' •'; ` ,,. .. � `. 9 �,. ..� ; ..�.,.,. -, ,� � f,e c: ,. r ,�r � ,..u, � ;"� Y, .? s., s'ti �a�; , . :,Y� a9 -: �l�� d��IYY�u,1��9 4 "^��5`?�. ��'��,�F�S� �� e�k' %uE';�1�1�I�1I�fM�"!fil'�^':, .,a� dl I , -.. „R9F . n � . � �,r� ff:. 1 M Clearance Report Wein KBU41 -18X Version #3 BE MARATHON Closest Approach II U Page 17 of 31 JNTE REFERENCE WELLPATH IDENTIFICATION . ___.0 ._ _ Operator MARATHON Oil Company Slot Slot #KBU41 -18X Area Cook Inlet Alaska (Kenai Penninsula) KBU41 -18X Field Kenai Gas Field (NAD83) Wellbore KBU41 - 18X Pad #41 -18 CLEARANCE DATA - Offset Wellbore: KBU33 -7 Offset Wellpath: MSS <0 -7910> Facile Pad #41-18 Slot: slot #KBU33.7 Well: KBU33 - Threshold Value =0.00 ft f - interpolated /extrapolated station Ref MD i Ref TVDT Ref North , Ref East Offset MD Offset TVD Offset North Offset East Horiz C -C • ACR 2 A 11/ ' [ft] i [ft] z [ft] 1 [ft] 1 [ft] 1 [ft] [ft] [ [ft] Bearing Clear Dist Sep MASD i Status € ° ; ft ft ft] . 2800.00 1 2799.45 11.73 -10.42 2599.26 2405.42 450.05 - 573.24 307.91 814.95 774.46 40.49, PASS , 2900.00 2898.70 20.85 -18.51 2691.54 2484.69 490.96 -596.86 309.11 852.59 810.47 42.11: PASS 3000.00 2997.47111II - 28.90 2791.351 2570.69 534.82 -622.19 310.25 886.80! 842.90 43.91 ; PASS 3100.001 3095.6 ! 46.81 -41.57 2888.53 2654.73 577.09 - 646.59:. 917.40 871.79 45.61 PASS lie i,-, P� f lib 1 a� � � ��S' I 11u 11 yR1 �h'sM�f,n � I ��" s' r! & � � 6o�li 3267.911 3258.75 76.49 -67.94 3050.20 2794.73 647.11 - 687.01', 312.67 961.34 912.91 48.43 PASS 3300.001- 3289.69 82 - 73.58 3081.98 2822.26 660.86 - 694.95, 312.93 968.86 919.91 48.95! PASS 3400.00 33861 -91.17 - 1 102.65 91.17 3181.26' 2908.35 703.68 -719.67 MEM 992.23. 941.64 50.59 PASS 3500.00 ll 3482.55 122.45 - 108.7. 2994.89 746.39 -744.33 314.47 1015.42 963.18 52.23 PASS ' 3280.86 = 41 r 7 " ' ''; P n " . 3700.00t 3675.41 162.05 -143.93 3468.211 3157.63; 826.77. -790.74 315.78 1062.21 1006.91 55.30 PASS 3800.00 3771.8' 181.8. -161.521111.11SEE 3234.54 865.46 - 813.07 316.38 1086.52 1029.76 56.76! PASS 3900.00 3868.26 201.66 -179.11 3647.86 905.32' - 836.09 316.9 1111.49 1053.23 58.27 PASS 4000.00 3964.6 221.4. - 196.71 3741.70, 3393.37 946.84 - 860.05; 1136.94 1077.09 59.85 PASS E '- I 4200.00 1032.53 - 909.53 31 4157.55 261.07 -231.87 3935.22•, 3559.68 8.70 1188.21' 1125.04 63.16 PA 4300.00 4253.98' 280.87 -249.46 4031.38 3642.36 1075.05 -934.07 319.2'! 1213.88 1149.0. 64.82' PASS 4400.001- 4350.41 300.67 - 267.05 4129.52 3726.81 1118.20! -959.34 319.7' 1239.551 1173.03 66.52 PASS 4500.001 4446.84 320.47 - 284.64 4228.90 3812.47 1161.42 985 26 320.20 1265.10 1196.85 68.26 PASS :. r, a u,r..n,,. 1. , :. .ua. .. ,. n r : a e.. �- �- s..,;� ,., (6'0 , ...1 5_ .�� ,,, .. - -, p, 1 I „I I , .. .,v . , . v,. , -., �[�_. -._ ...- ys -. r ,1,. r rte- 2$4:4$ , .,,,:. I a . �. 1� , . 7 �, y., <. a I J" , `, -�F VPJi,, 1 y � � >< �� .�� , , a ,, 1 � ,. 11 . ptti r � !1��y 89� , -. ,. _.. �.. § :,.... - 0;4 � :- � � k 1.220 II.�. � $ G.. �., � � e .,.,. r.Wa M L bs .. +�c� �+� - _� _ .n� y�,�flrva��aJ�,�w�u� "fl' A . 'n �.b � .,.,. _.... � -a x�< � ..W '� .w'�.�..- ...y � �m � c '�` : 4700.00 4639.70 360.08! - 319.81 4426.92 3983.56 1246.51 -1037.21 321.02 1315.65 1243.92 71.73 PASS 4800.001 4736.12 379.88 - 337.40 4544.45', 4085.47 1296.59 - 1067.45 321.47 1340.40 1266.57 73.8& PASS 4900.001 4832.55 399.68 - 354.99 4671.25` 4196.51 1351.56 - 1094.41 322.16 1362.85 1286.75 76.10; 5000.001 [ 4928 r PI .98 419.49 1 - 372.58, ; 4771.93 4285.08 1395.12 -1114.26 322.76 1384.40 1306.51 77.89 PASS r�� F� ^ , 111 IP __ _ � ..._... �.,..' 1 rr t a , rl��pw M x��, d.� t e ts.�1 � '' R G # � .,.. lyr 1 '. . ��..�1 1 d � � 1 *1 1s�m.p h, �, ._ ..'� � .,... 9. e �, 5178.731- 5101 33 454.88 -404.01 4949.39 4441.5e 1471.39 -1149.01 323.76 1422.56 1341.51 81.05. PASS 5200.00f, 5121.86! 459.05 - 407.72 4969.62 4459.34 1480.08 - 1152.96 323.87 1427.17 1345.75 81.42: PASS 5300.00 5218.76, 5 , 5064.11' 4542.62 1520.72 - 1171.43 32438 1450.50 1367.38 83.12 PASS - _ _- f _..._ _. 477.50 424 11 5400.00 5316.27 494.05 - 438.81 5157.651 4625 O1 1561 00 1189 88 324.8 8. . 76.60 1391.75 84.85 PASS , ; , + V .. ,, 4 . + T T 14 „W � e r r ,, . J 1 pi yam a '' [ a� r `� . s,� .,n f t ®,®° .'� 1� '� '! ti �e'i.; I P,. .. i d .. s, °�:: 1,,,,,:.1 = ', I ' 3 _ , ,.. r.f .,1 . , ;�.......a.. i �„ - ".� ' ff' �.p i_, '�^�,,, u� �� + rr. � .�., �, .nti , 11 , 1 1 1 , I�� p l � �r ,1,s 1 „ ;. 7,�so - • M Clearance Report KBU41 -18X Version #3 • BAKER Closest Approach HUGHES MARATHON Page 18 of 31 INTEQ REFERENCE WELLPATH IDENTIFICATION .._...d Operator MARATHON Oil Company Slot Slot #KBU41 -18X Area Cook Inlet, Alaska (Kenai Penninsula) W KBU41 -18X Field Kenai Gas Field (NAD83) Wellbore KBU41 - 18X Facility Pad #41 -18 CLEARANCE DATA, - Offset Wellbore: KBU33 -7 Offset Wellpath: MSS <O -7910> ,.,�. .;�. >. *.e. . ,_., v,, a .. ,.,�.:�:..i acili .: Pad. #4148 Slot: slot #10$U33 - Well: KBU33 -7 Threshold Value =0.00 ft t = interpolated /extrapolated station _ Ref MD Ref TVD Ref North • Ref East Offset MD Offset TVD , Offset North Offset East Horiz C - C Ellipse , A_ CR r A [ft] [ft] [ft] [ft] [ft] [ft] [ft] [ft] Bearing i Clear Dist Sep 1 MASD 1 Status .x 4 01 1 ft ft ft 5600.00 5512.88 521.40 - 463.10 5343.95 4788.92 1641.22 11111111111EMOR 325.69 1536.93 1449.25 87.69 PASS 5700.00 5611.83 532.18! -472.67 5433.76 4867.90 1679.85 - 1245.65 326.04 1571.02! 1481.95 89.07 PASS 5800.00 111.11MIE 541.02 - 480.52 5518.82! 4942.54 1716.72 - 1263.16 326.35 1607.95 1517.58 90.37 PASS 5900.00 5810.70 547.91 - 486..•' 5595.75 5009.79, 1750.43 - 1279.26 326.61 1647.95 1556.41. 91.54 PASS t g 6100.00. 6010.3' 555.8• 493.68 5743.43 5137.92 1816.47 - 1311.27 327.03 1737.48 1643.70 93.79 PASS 6200.00 6202 62 6113 00 556 87 -494.60 5811.64 5196.64 1847.65 1326.57 327.20 1786.95 1692.14 94.82 PASS 494.61 5198.12 1848.44 - 1326.96 327.20 1788.2' 1693.45 94.84 PASS I 6300.00 6210.38 556.87 -494.61 5877.05 IIIIIIIIIIIIERES 1878.04 - 1341.62 327.34 1838.57 1742.81 95.76 PASS i ��,p , ....�._ ..� _ �, _ „ ° "(?I ._. h F,lf Al " ',' m • h rye' " '7 6500.00 6410.38 556.87 -494.60 6032.61 -1378.42 1845.53 ' 98.13 PASS 6600.00 6510.38 556.87 -494.60 6123.59' 5461.98 1994.28 5384.73. 1951.39. 1378.42. 327.63. 1943.6 6700.00 6610.38 556.87 -494.60 6213.67 5538.60 2036.54 1421.45' 327.9 20 1947.95 PASS ' 100.76. PASS 6800.00 6710.38 556.87' - 494.60 6302.57 5614.34 2078.03 - 1442.61 328.07, 2100.95 1998.78 102.17 PASS I ; 1 ,j Is 'R41, 7000.00 6910.38 556.8 -494.60 6482.47 5767.85! 2161.56 - 1485.22 328.31 2204.9•' 2099.90 105.04 PA _ 7100.00 7010.38 556.87 -494.60 6573.68 5845.84 2203.77 1506.5• 328.43 2256.65 2150.15 106.50 PASS 7200.00 7110.38 556.87 - 494.60 6667.71 5926.39 2247.08 -1528.42 328.55 2308.12 2200.11 108.01 PASS 7300.00 7210 556.87 -494.60 6763.84 6008.96 2291.05! - 1550.62 328.66 2359.23 2249.67! 109.56 PASS . .._ r7n11" M i. 3 4V'. u .. 1 e, 11 ttP , I� '"' ,,hi" • . 1 I��Za a sr ±:l ,:k ",�'' rich x a ; { i 1 ml a . s `r.� ' :, " k �,." M , 7400.00 7 2► PASS 310.38: 556.87 494.60 6867.04 6097.88 2337.78 - 1574.23 328.78 2409.86 2298.6 7500.00 7410.38 556.87 -494.60 6966.77 6184.16 2382.39 - 1596.86 328.88' 2459.90 2347.07 112.83. PASS 7600.00 7510.38 556.87, -494.60 7063.63 6268.18 2425.1 • -1619.07 328.96! 2509.58 2395.19 114.39' PASS 7700.00 7610.38 556.87 -494.60 7160.74 6352.62 2467.52 - 1641.5; 329.03 2558.90 2442.95 115.95 PASS .., ;, � I r ...- k r, � .., I. ,. �: , ,.�,:.:. ,. r- n�.,..::I S' ... Pl .., � u '3 If�'� . u.. n ; ..a �. ,; w 1 1_1 L.. �I:I ; z a,ti, ,.. eru� . wyA 1 ,rbrl `.r. .. 4, .,f. v .¢p,,. d��l ��i laa i 11 „ @rd:9� r .� - r. .rN x. u r a f ., ,�„ yd h 1I '.:�. ,1 �13� '� 1 "�,:, I�IP I I 1,;�.; 1l llklfld� .. I „II r�� a�,,�"1��5z a . ,� I n.�, G i II .hd HIII .a =E.� � . a ��. 5 . S 9M - + ... C a��.� uMVu�tlVi�u�reuu�uV � w. ..� . � tl __. � +, .fx u,A r�v9 �� a�r��lu � � uw.:Vw „n�, a ,.r�� 7900.00 7810.38 556.87 - 494.60, 7377.59 6542.22 2560.15 - 1691.51 329.14 2655.93 2536.53 119.40 PASS 8000.001 7910.38 556.87 -494.60 7489.04 6640.38 2606.41 - 1716.9' 329.19 2703.27 2582.11 121.16 PASS 8100 001 :111. :; 556.87 - 494.60 7593.59; 6732.79 2649.19 - 1740.55 329.23 2749.99 2627.17 122.82 PASS 8200.00 8110.38 556,87, - 494.60 7705.28 6831.89 2694.30 - 1765.46 329.27 2796.11 2671.54 124.57 PASS 1r x y ' § 1 r 111 T7 r 1 _ ._.. � ,av �a � '� �� Ir . _.. W w.� _ _ __ _ _ _. � . � _ . � � . _ _ _ a b� ,.... �._ � . ¢ ��e.Trl : �.��u 1 14 r 1E ��45 1 91 M Clearance Report KBU41 -18X Version #3 BAKER m i s Closest Approach HUGHES MARATHON Page 19 of 31 INTEQ REFERENCE WELLPATH IDENTIFICATION Operator MARATHON Oil Company Slot ! Slot #KBU41 -18X Area Cook Inlet Alaska (Kenai Penninsula) MINIM KBU41 -18X Field Kenai Gas Field (NAD83) Welibore KBU41 -18X Pad #41 -18 ,CLEARANCE DATA - Offset Welibore: KBU33 -7 Offset Well , ath MSS<O-7910> IFacih 9 Pad #41-18 Slot: slot #KBU33 -7 Well: KBU33 7 . Threshold Value Q 00 ft = inte olated /extra olated station _ [ 1 [ ] ] [ft] Ref East Offset Offset] TVD Offset North I Offset] East Bearing Clear Dist E S p A Ref MD Ref TVD � Ref North Ref East � MASD � ACR - A ft ft fSD Status - _ _ . [ 1 [ft] [ft] . .. [ t] 8400.00 8310.38 556.87 -494.60 7910.00 7014.70 2775.09 - 1809.77 329.34 2886.00 2758.20 127.79 PASS -494.60 7910.00 7014.70 2775.09 -1809.77 329.34 2981.15 2804.26 128. PASS 556.87 - 329.34 2932.25 2853.04 128.11 PASS ..__ 556.87 . 8500.00 1 8700.00 8610.38 556.87 -494.60 7910.01' 7014.71 2775.09 -1809.77 329.34 3032.55 2904.39 128.16 PASS 1 ,..::R:-.14, 1�k ) 004 a : ., - 4na n,hn, ,:_ wX , �' WELLPATH COMP OSITION Offset Welibore: KBU33 -7 Offset Well t ath: MSS <O -7910> Start MD i End MD Positional Uncertainty Model Log Name /Comment Welibore __Cft_ . _ -_ .._.__.. _ 0.00 ' 7910.00 Photomechanical Ma: s etic Standard MSS <0- 7910'> KBU33 -7 `OFFSET WELLPATH MD REFERENCE - Offset Wellbore: KBU33 - 7 Offset Wellpath: MSS <0 -7910> -o MD Reference: Actual Datum (RKB) Offset TVD & local coordinates use Reference Wellpath settings ! (See WELLPATHDATUMon page 1 of this report) M Clearance Report 1 KBU41-18X Version #3 BAKER Closest Approach :, iii ' ' .... HUGHES MARATHON Page 20 of 31 IlsITEQ REFERENCE WELLPATH IDENTIFICATION .,, - ' , Operator MARATHON Oil Company Slot Slot #KBU41-18X Area :Cook Inlet, Alaska (Kenai Penninsula) M Field Kenai Gas Field (NAD83) Wellbore ICBU41-18X _ , . EIMMIN Pad #41-18 IIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIMIIIIIIIIIIIIMIMIIIIIIIIIIIIINIIMII CLEARANCE DATA - Offset Wel lbore: ICU41-18 Offset VVellpath: MSS <0-14721> ,,... , Xacility: Pad #41-18 Slot slot #KU41-18 Well KU41-18 Threshold Value=0.00 ft f 7 interpolated/extrapolated station -- --- - „ --_ , „ -, - , 1 Ref MD Ref TVD Ref North Ref East 'I Offset MD , Offset TVD i Offset North OffSei ' - ijoriz ; '‘C-C Ellipse ACR A a ! [ft] [ft] [ft] ' [ft] ; [ft] [ft] i [ft] [ft] Bearing Clear Dist Sep MASD l i Status ' , 1 1 4 [1 fftl [ftj [ft] 3 I 0.00 0.00 0.01 0.00 10.00 0.03 -331.53 -151.11 204.50 364.35 351.62 12.73 PASS 100.00 100.00 0.00 0.00 110.00 100.03 milmemEgill...11111 204.50 364.35 350.46 13.89 PASS 200.00 200.00 0.00 0.00 210.01 200.03 MIMMINEM111111111M 204.50 364.35 349.8 14.50 PASS 300.00 300.00 0.01 0.00 310.00 300.03 IU 204.50 364.35 349.21 15.13 PASS , , _, _ __*:1:148': 500.00t 500.00 0.00 0.00 510.01 500.03 MMIIIIIIIMMIIIIIIIIIIIrjsin 204.50 364.35 347.90 16.45 PASS 600.00 600.01 0.00 0.00 610.01 600.03 MIIIIIIMIEMINIMED 204.50 364.35 347.22 MM PASS - - -- . 700.00 700.01 0.00 0.00 710.01 700.03 - 51.11 204.50 1111111111111111M 1 364.35 346.53 17.82 PASS 800.00 800.01 0.01 0.00 810.01 800.03 IIIIIIMMEEMIIIIIMIR 204.50 364.35 345.82 18.53 PASS -- :;0 1 3 Prii :- N - 1000.00 1000.01 0.01 0.0i 1010.0• 1000.03 IIIII 20450 364.35 344.36 19.99 PASS 03 204 1100.00 1100.00 0.0, 0.00 1110.01 1100..50 364.35 343.62 20.73 PASS IBIIIIIIIIHM '5 - 1200.00 i 1200.00 0.01 0.00 1210.01 1200.03 331.53 -151.11 204.50 364.35 342.86 21.49 PASS 1300.00 1300.00 0.01 0.00 1310.01 1300.03 MIIIIIIIIIIINUIER -151.11 204.50 364.35 342.09 22.26 PASS 1 1 ;::- IA ,Yg 41%11 - I 1500.00 1500.00 0.01 0.01 1510.01 1500.03 MMIIIIIIIEBEIMMM 204.50 364.35 340.53 23.82 PA' 1600.00t 1600.00 0.00 0.00 1610.01 1600.03 .1111111.111111111 204.50 364.35 340.14 24.20 PASS 1700.00 1700.00 0.0 t 0.00 1710.00 1700.02 204.50 364.35 339.53 24.82 PASS 1800.00t 1800.01 0.00 0.0 • 1810.00 1800.02 -331.531111111111EMI 204.50 338.91 25.44 PASS 141-71'441:4:00161:-CriPL01,19004M '.- '1,1„,1,,ly,10,:43,07 ,. 1 1. 1 1.,(EQ,SY,_ J'" l - - --4 .4" 0 "fi ifi, 1 ' g.--21 , 1 2000.00t 2000.00 0.00 0.01 2010.00 2000.02 -331.53 204.50 364.35 337.62 26.73 PASS 2100.00 2100.00 0.00 0.00 2110.01 2100.02 -331.53 .1111111101 204.50 364.35 336.95 27.39 PASS 2200.00 2200.01 0.00 0.00 2210.00 2200.02 IMIIIIIIIIMMUMM 204.50 364.35 336.28 28.0 PASS 1 2300.00t 2300.01 0.01 0.00 2310.00 2300.02 -331.53 -151.11 204.50 364.35 335.59 28.76 PASS "a rilihilit:12:?47: ,....t„, _ Itrl.,-; 25001 2500.01 0.00 0.00 2510.0• 2500.0211111111111EnallallMEM 204.50 364.35 334.18 30.16 PASS 2548.61 2548.61 0.31 -0.27 2558.61 2548.61 MIIIIIIIIMEMMIIIMIn 204.44 364.51 333.97 30.54 PASS - 2600.00 2599.98 1.30 -1.16 2609.98 2600.00 MIIIIIIIBIEMIIMERII 204.25 365.0. 334.17 30.88 PASS 2700.00 2699.8 11111.111111M -4.63 2709.8 2699.86 IIIIMIIIIIIIIIIEEIEMIIIIIIIME 203.51 367.23 335.60 31.63 PASS Clearance Report KBU41 -18X Version #3 BAKER Closest Approach HUGH MARATHON Page 21 of 31 INTEQ REFERENCE WELLPATH IDENTIFICATION Operator MARATHON Oil Company Slot , Slot #KBU41 -18X Area Cook Inlet, Alaska (Kenai Penninsula) KBU41 -18X Field Kenai Gas Field (NAD83) Wellbore KBU41 -18X MEM Pad #41 -18 IIIIIIINIIIIIIIIIIIIIIIIIIINIIIIIIIIIMINMIIIIIIIMMIIIIIIIIIIIIIIIIIIIMIB CLEARANCE DATA - Offset Wellbore: KU41-18 Offset Well . atli: MSS <0-- 14721> Facility: Pad #41 -18 Slot: slot #KU41 -18 Well: KU41 -18 Threshold Value-.00 ft _ inter olated /extrapolatedsattton Ref MD Ref TVD Ref North ReF East Offset MD Offset TVD Offset North Offset East t Horiz C -C 1 Ellipse ACR g A [ft] [ft] [ft] i [ft] [ft] F [ft] [ft] [ft] Bearing Clear Dist Sep MASD 1 Status 1 ' ° ft ft ft " 2900.00t 2898.70 20.85 - 18.51 2908.70 2898.72 -331.53 200.62 376.50 343.28 33.22 PASS 3000.00 2997.47 32.54 -28.90 3007.47 2997.49 - 331.53 198.56 384.0 349.96 34.07 PASS 3100.00 3095.62. 46.81 - 41.57 3105.62 3095.6' -331.531111111 196.15 393.88. 358.89 34.99 PASS 3200.00 3193.06 63.62! - 56.51 3203.0. 3193.07 193.46 406.32 370.36 35.97 PASS _ _....... � G,u p� �aot 1pa i b Zv P�.Se" t., i � 1 ^r , LEI � � ��kA� .��'¢ . ➢ :.. ��k�- �� "�� '� �; �'" �p i r . ,+� +gym, m � ro "C Bn 3300.001 3289.69 82.85 -73.58 3299.6'; 3289.71 - 331.53 - 151.11 190.60 421.57 384.58 36.981 PASS ' 3400.00 3386.1 102.65 -91.17 3396.12 3386.14 - 331.53 187.86 438.30 400.30 38.00 PASS 3500.00 3482.55 122.45 - 108.76 3492.55 3482.57 -331.53 111111111EMEn 185.33 455.96 416.94 39.02 PASS 3600.001 3578.98 142.25 - 126.35 3588.98 3579.00 IIIIIIIIIIIIEBEEMIMIIIIIIFEUM 182.99 474.43 434.39 40.04 PASS 4 -161.52 3781.8' 3771.85 178 8' � 1 i. 471.42 42.07 PASS 3800.00 3771.84 181.8: 3900.00 1 3868.26! 201.6. - 179.11 3878.2., 3868.28 -151.11 176.99 533.93 490.85 43.08 PASS 4000.001 3964.69! 221.46 - 196.70 3974.69 3964.71 -151.11 175.29 554.87 510.79 44.08 PASS 4100.00 4061.12 241.26, - 214.29 4071.12 4061.1' IIIIIIIIIIIIIIIIIIiiiiiiiiiimatigigimingiggiimiggig 576.27 531.20 45.07 PASS a'k' __ 0� ,� �i 24 ��`' w__ � �59. W �� :?�r' I��aa.P�I�,,,�1�; , A � ' 1 4300.00 4253.98 280.87 - 249.4. 4263.98 4253.96 - 151.11 170.88 620.25 573.22 47.03 PA 4400.001 4350.41. 300.67 - 267.05 4360.41 4350.39 - 151.11 169.61 642.75 594.75 48.00 PASS 4500.00i. 4446.84 320.47 - 284.64 4456.8'' 4446.82 ®® 168.43 665.54 616.57 48.97 PASS -302.23 �� 167.32 688 60 638.67 49.93 PASS 4600.001 4543 27 � :.47,,..,'" 340 28 302 23 � 4553.27 454325 � � - ., � � s , ., �� a � �,, a �'�� _ .. ;. M'''�p�..r _ , . x "w:'u=f-® a ,4t;71:1 �' i m I „ � cN li:.. tiffs i d , r _ i,, . x . ^.3 x.'..- . , 'a , are a . a u a� �,�,,. ,� . . +., �,. .. .a,. aM:�u .., 4800.0 800.00 &N-11,7, '-- 47 6.12 �. t . . - 379.88 337.40 ... 4746.12 - 4736.11 - � . .:.165.33 "� wu 35 4 0 . ^ 683.57 , ry s:, � 1 _ 735.40. 51.83'. PASS 4900.00 4832.55 399.68 - 354.99 4842.55, 4832.54 IMIIIIIIIIIIIEIEEOIIIIIIIIIIIOEEB 164.42' 75 9.11, 706.33' 52.78 PASS 5100.00 419.49 -390.17 5035.48 4928.39�� ' 162 77 � PASS 5000.00 4928.98 729 27 807.04 4 6 PASS 5025.41, 439.2' �' � . ,. 5200.00 51218. 459.05 _ -407.72 5131.86 5121.84 162.02 831.18 55.61 PASS 5300.00 5218.76 477.5 � ; - 424.11 5228.7 5218.74�� 161.35 853.85 797.30 56.55 PASS 5400.00t 5316.27! 494.05 '438.81 _ 532627 5316.26 331.53' - 151.11 160.79 874.28 816.77 57.50 PASS e 5500.00 5414.3' 508.69 451 80 5424 ,y 331.53 151 11 160.3 1 892.41 . 834.51_ 57.89 PASS I 34 5414.32 1 ' ' a �s l � i�C�l �" ° bHd11, arrtt id,,fwN . k ::k Ei .ZI: 1 k ir; ' ` � 'A- ,._. _.� c . �..v.� �L , ....u- I � . : .._.. _._.__ -i i 4 _ter. a u ,..z gg Clearance Report KBU41 -18X Version #3 BAKER Closest Approach HUGHES MARATHON Page 22 of 31 INTEL, �REFERENCE WELLPATH IDENTIFICATION ] Operator MARATHON Oil Company Slot ; Slot #KBU41 -18X 'Area Cook Inlet, Alaska (Kenai Penninsula) KBU41 -18X Field Kenai Gas Field (NAD83) Wellbore KBU41 - 18X Pad #41-18 CLEARANCE DATA - Offset Wellbore:'- KTT41 -18 Offset Well . ath: MSS <0- 14721> _ Facili ': Pad #41 - 18 Slot: slot #KU41 -18 Well: KU41-18 Threshold Value =0.00 ft = inte olated/extra olated station_ Ref MD - Ref TVD I Ref North Ref East Offset MD Offset TVD Il Offset North I Offset East Horiz C-C Ellipse ACR A 1 [ft] [ft] I [ft] [ft] [ft] [ft] [ft] [ft] Bearing Clear Dist Sep l MASD Status I I ° ft ft I ft 5700.00 5611.83 532.18 - 472.67 5621.83 5611.81 Minigglillill11103183 159.58 921.63 862.42 59.21 PASS 5800.00t 541.02 - 480.52Efing111111111111=BEm 2 -151.11 159.12 941.28 880.73 60.55 PASS 6000.00 5910.4 5900.00 5810.70 547.91 - 486.6' 5820.71 5810.68 5910.48 552.85 886.24 61.22 PASS 8. 491.03 5920.48 5910.45 158.98 947.46 : ' ' 6200.00 i 6110.38 556.8 - 494.60 .1 1, :1 6110.36 158.8. 952.49 889.92 62.57 PASS ' 6202.62t 6113.00 556.87 - 494.60 .1 .1 6112.98 cc �B 158.86 952.49 889.91 62.59 PASS _ 6300.00 6210.38 556.87 - 494.60 6220.38 6210.36 c - 151.11 158.86 952.49 889.28 63.21 PASS 6400.00 6310.38 556.8 - 494.61 6320.38 6310.3. 1.111111111111111.11111111E101111111111111111BEE 158.86 952.49' 888.64 63.85 PASS x 6600.00 6510.38 556.87 494.60 6520.38 6510.3 :MIIIIIIIIIIIEBBBIIIIIIIIIIIIFNIThI 158.86, 952.49 887.34 65.16 PASS : + 6700.00 6610.38 556.87 - 494.60 6620.38 6610.3. 1111111111111MMEMIIIIIIIIIMEOM 158.86 952.49 886.68 65.81 PASS 6800.00- 6710.38 556.87 494.60 6720.38 6710.36 IIIIIIIIIIIIIIIIEEIIIIIIIIIIIIIIIIEKUEE 158.86 952.49 886.01, 66.48 PASS 6900.00 6810.38 556.87 -494.60 6820.38 6810.36 6810.361.IIIIIIIEMIIIIIIIIIIEEI 158.86 952.49 885.35 67.15 PASS �., �l ��w ^1�dGl,,1 11544"6047-4 4 7100.00 7010.38 556.87 -494.60 7020.38 7 PA 7200.00 7110.38 556.87 158.86 952.49 884.01 68.50 � �� 158.86 952.49 883.31 69.18 PASS : �� 7300.00 7210.38 556.87 - 494.61 7220.38 7210.35 -331.53 - 151.11 158.86 952.49 882.63 69.87 PASS 7327.62t 7238.00 556.87 - 494.61 7248.00 7237.9 - 331.53 - 151.11 158.86 952.49 882.44, 70.06 PASS a r^ ='� 96 � & P ,+ ", "1 ,I, `x mfr : ta sIA "cast• ��;o - t� 1 e �c�� a °,1 .b s..�._ -� . r ti9 w �� a � "� . �; , � . �5'�` � ,s , �6 . �. �4 v,�� N „ a, 4 "�,�,.1 in t' I. „ �, 7500.00t 7410.38 556.87 - 494.61 7420.38 7410.35 -331.53 - 151.11 158.86 952.49 881.24 71.25 PASS 7600.00 7510.38 556.87 . -494.60 7520.38 7510.35 - 331.53 -151.111 158.86 952.49 880.54 71.95! PASS 7700.00 7610.38 556.87 494.60 7620.38 7610.35 11111111111111MEENINIEBIED 158.86 952.49 879.83, 72.66 PASS 55 1 158.86 952.49 879.13 73.37 PASS 7800.00 7710 38 556.87 -494.61 151 1 n , > v "M . ^ , _____"_-__1_--_:1", �:� n = K1 �' _ , IJ .. -.. x 1 . ' _4 , %) T ix4 ''. : T:, 5 ^ i �l.0 ..:l _� , I, ..., II .r. _ ^.r,F,. v. "(.,;�a ,.,�� m�� ''.q. �„� „t'. '[%,n,, +,4.,!t,�;; 8000.00t ..... 7910 38° _ 556.87 -494.61 7920.38 7910.35 8100.001 8010.38 556.87 - 494.60 8020.38 8010.35- -� 158.86 952.49 876.97` PASS -494.60 158.86 952.49 876.25! 76.24 PASS 8200.00 8110.38 556.87 494.60 8120.38 8110.35' 8300.00 8210.38 556.87 - 494.61 8220.38 8210.35 1111111111111111111111EIREIMS1111111M311 158.8. 952.49! 875.52 76.97 PASS g , "4I , - Alk Clearance Report „. KBU41 -18X Version #3 BAKER Closest Approach H + HUGHES MARATHON Page 23 of 31 INTEQ REFERENCE WELLPATH IDENTIFICATION Operator MARATHON Oil Company Slot Slot #KBU41 - 18X Area Cook Inlet, Alaska (Kenai Penninsula) KBU41 -18X Field Kenai Gas Field (NAD83) Wellbore KBU41 - 18X liesnam Pad #41 -18 !CLEARANCE DATA - Offset Wellbore: KU41 -18 Offset Wellpath MSS <0- 14721> iFacili Pad #41-18 Slot: slot #KU41-18 Well: KU41 -18 Threshold Value =0.00 ft = ante olated/extra. olated station • Ref MD Ref TVD Ref North Ref East Offset MD s Offset TVD a Offset North : Offset East x ` Dorm C -C 1 Ellipse ' ACR AC [ft] n [ft] [ft] [ft] [ft] [ft] [ft] [ft] Bearing Clear Dist Sep MASD Status i [ o t, [ft] [ft] [ft 8500.001 8410.38 556.87 - 494.60 8469.19 8459.13 - 329.99 - 152.79 158.92 951.69 872.61, 79.09 PASS 8600.001 8510.38 556.87 - 494.60 8584.05 8573.80 - 323.60 -155.48 158.94 945.65 865.07 80.58! PASS 8700.001' 8610.38 556.87 -494.60 8710. 8699.51 -311.79 - 154.28, 158.61 937.19 855.15 82.04 PASS 8797.62 8708.00 556.87; - 494.60. 8811.97, 8800.39 - 299.94 158.16' 927.68 845.01 82.67 PASS WELLPATH COMPOSITION Offset Wellbore KU41 -18 Offset Wellpath: MSS <0- 14721 > Start MD End MD Positional Uncertainty Model Log Name /Comment Wellbore ft IH] ` 0.00 14721.00 I Photomechanical Ma. etic Standard MSS <0- 14721> KU41 -18 `A¥z4.Y: n .Yw.,:..^ A fu. k%"s .+m ..;t.. .. ^.: . -. .. .... .... ,.._u....+..a.+_�..x .x m•zn ..s�a...,N... +».i,.r- ne�»a..c -.»+x -e:. r....« «< . R...« �..... Hemd9tY%tM'srsteva'a ura§iNO.fiY ES - to. ,:.e?cd ws ari.'#n�'*ne. . tsubwsbx: uaa3m 9 :.v...+` xSuFs 9 ':�. ,.m....,.Y ?.e" . � OFFSET WELLPATH MD REFERENCE - Offset Wellbore: KU41 -18 Offset Wellpath: MSS <0- 14721> '' - MD Reference: Actual Datum (RKB) : Offset TVD & local coordinates use Reference Wellpath settings (See WELLPATH DATUM on page 1 of this report) \ M Clearance Report KBU41 -18X Version #3 BAKER Closest Approach UGHES MARATHON Page 24 of 31 INTEQ REFERENCE WELLPATH IDENTIFICATION � _ _ .._ , Operator MARATHON Oil Company Slot ' Slot #KBU41 -18X Area Cook Inlet Alaska (Kenai Penninsula) Well KBU41 -18X Field Kenai Gas Field (NAD83) Wellbore KBU41 -18X 'MIMI Pad #41-18 CLEARANCE DATA Offset Wellbore KU24 -7 Offset Well ath. GMS <0 5820'> acili Pad #41-18 'Slot, slot #KU24 -7" Well: KU24-7 Threshold Value =0.00 ft t ='interolated /extrapolated station Ref MD Ref TVD Ref North Ref East Offset MD Offset TVD T Offset North Offset East Horiz C -C 1 Ellipse i ACR A [ft] [ft] [ft] [ft] [ft] _ [ft] _ [ft] [ft] Bearing Clear Dist . Sep MASD 1 Status ` 1 ° ` ft t ft ft 0.00 0.01' 0.00 _ 0.00 0.00' 0.00 - 280.92 -208.72 216.61 349.97 336.75 13.22. PASS 100.00 100.01 0.00, 0.00 99.96 99.9. - 280.92 - 208.72 216.61 349.97 336.74 13.23 PASS 200.00 _._ 200.01 0.00 0.00 .... 199 . 68 ' , 199.68 - 280.68 -209.18 216.70 350.05 336.78M PASS 300.00 300.01 0.01! 0.01 300.96 300.95 - 279.72 - 210.21 216.93 349.90! 336.55 13.35 PASS t _ Tilt . . :. i :....... l _,, . 1, .. � .6 £+ . t , 7' :.,4',3 A 7/ 344.45t 344 45, 0 01 0 0; ...._ 344 0 344.03 _.......... - 278.82 211.34 217.16 349.86 336.47 13.40 PASS . . 397 -277.07 -213.96 217.68 350.08 336.61 1 217.6 13.47 PASS 1 500.00 500.01. 0.00 0.00 488.08 487.60 - 273.84 218.93 i 338. 1 50 PASS 70 00 600 01 0.00 0.01 _._ 584.43 583.25 - 269.89 232 06 220 69 356.33 342.28 14.06 PASS __ ` 800.00 i 0 -261.19 -261.31 225.011 371.60; 356.96, 14.6', PASS 900.001 900.00 0.00, 0.00 856.08' 850.08 -256.69 -280.63 227.55 383.58 368.56 15.02 PASS 11111 1000.01 0.00 0.00 944.91', 936.0'` -250.85 -302.23 230.31 397.94 382.57 15.37 PASS 1100.00 1100.01, 0.00' 0.00 1030.87 1018.18 ^ 2 4 A 44 07 - 326.62 233 23 415 86 400 15 76 _ ' _ ° p lu �, £ r� 2 ' l I s r1 H 1 , a89�b 1 1 + a ; �` a a 1 _ F ,. ,, PASS , , - _____ - _V 1 .,..� �,>ru ulk Ll „q l W ��d „U� r1 lu r£aa✓ao "d P , b , _ ...� ' $ ., .�_ _____ ^"� 1 .� " du ti '1 . .�... _ .��, 1300.00 1300.00 0.00 0.00 1195.43 1172.08 -227.38 - 382.30 239.26 462.84 446.17 16.67:. PA 1400.00 fi 1400.01' 0.00 0.00 1272.98 1242.76 -218.03 - 412.81! 242.16 492.62 475.45; PASS 1500.001 1500.01 0.00 0.01 1346.94 1308.87 - 208.22 - 444.46 244.90 526.71, 509.06 17.66:. PASS 1600.00t 1600.00 0.00 0.00 1417.25 1370.38 -198.01 - 476.95 247.45 565.17 547.27 17.90 PASS r c+r. >,. »a. Imo.: C r ,r�ry +F, .{ ; I,+ �r`.. .nv?:r1'�*r . r. ,� 1 . :. i � ��;; I , � a* I,a d.., �. r y , „ n U a 4 r �, h £.. a , - „ - . -.T,, � efi r-. .',, �I ..,� ' ., ... �I �. u� � I :.� �� ..- raI I..,r .r�� +Ir ,.,, I r ,. , ulf .al b ,,ems ... I , � sq y. .,., w: -r =.a s. �.. . � �u,.. r r.. f b! 1 , 3 7 r � � � � ��.�� ... I[ �ti F y ..1, r Ert,Po � � r�^ � � � N I lV+ „� . r~A � „�� + „ �'1 � � . ;h y 1800.00 1800.00', 0.00 0.00 1564.28 1494.78. - 173.92 - 551.47 252.50 653.86 635.18 18.68 PASS 1900.00 1900.00 0.00 0.00 1637.64 1555.9. - 161.03 - 589.8'; 254.73 701.57 682.74 18.82 PASS 2000.00 2000.01 0.001 0.00 1705.18 1611.52 - 149.03 -626.32 256.62 751.94, 732.90 19.0'' PASS 2100.00t 2100.01 0.00 0.00 1770.64 1664.52 - 137.04 - 662.83 258.32 804.8'; 785.5' 19.30 PASS t.. tK m :.:'. �u�� - , "'`n �M, r.1+ , . I i r '',`9a1 .rIP - �C1, ,. � _ JI � L ��i. 11 II �i ,:.:* �,. ;, 'ho [ � ;,-� , s, "+,. e�Q l � i ! .. -, ..: E' �._ I . s , ,. , i � . , .� �nxv r, ,. _.�_.. I �� ..,,,� +Irf�� ...,I,,dr�� 1 �. _, .. L. �� 1i � i � s ,��w,n .� � c. . I 2300.00 _23 00.00 0 00 0 00 1905.14 1771.27 - 111.30 - 740.49 261 45 9 6 _ _.. fi __. 916.6. 896.79 19.87 PASS 2400.00 2400.00. 0.00 0.01: 1960.04 1813.85 - 100.30 c 262.61 975.55 955.49 20.0. PASS 2500.00 2500.00 0.00, 0.00 2030.80 1867.71. -85.64 - 816.83` 264:02 1036.50 1016.06 20.4, PASS 2600.00 1 2599.98. 1.30, -1.16 2132.40 1946.01 -65.0 - 878.23 265.6 1096.06 1074.9' IMRE PASS Clearance Report KBU41 -18X Version #3 BA: 1 Closest Approach HUGHES MARATHON Page 25 of 31 INTEQ 'REFERENCE WELLPATH IDENTIFICATION �� I Operator MARATHON Oil Company Slot , Slot #KBU41 -18X Area Cook Inlet, Alaska (Kenai Penninsula) E KBU41 -18X Field Kenai Gas Field (NAD83) Wellbore KBU41 -18X , Facility Pad #41 -18 CLEARANCE DATA - Offset Welibore. WU24 -7; Offset WellGMS <0- 5820'> Facility: Pad #41 -18 Slot: slot #KU24 -7 Well: KU24 -7 Threshold Value =0.00 ft 1 = interpolated /extrapolated station Ref MD Ref TVD Ref North Ref East Offset MD Offset TVD 1 Offset North Offset East 1 Horiz 1 C -C - 1 Ellipse ACR - AC [ft] [ft] [ft] [ft] [ft] [ft] I [ft] i [ft] Bearing' Clear Dist Sep MASD 1 Status E, 1 ft ft ft] 2800.00 2799.45 _.. �n -10.42 2367.89 -19.61 - 1012.82. 268.21 1203.72 1181.05 22.67 PASS 2900.00 2898.70 20.85 -18.51 2462.01 2210.82 -2.20 - 1063.99 268.7' 1251.69 1228.46 PASS ,, 3000.00 2997.47 32.54' -28.90 2569.53 2299.21 17.69 - 1121.90; 269.22 l297.09�►• 23.86 PASS _ 9 46 1339 02 1314 56 24 3100.00 3095.62 46.81 -41.57 2667.75 2380.61 36.14 �� - 11 p 7366 26 A, I �� ` � h'I �� l IV'Y? M IPA � � � 24.47 PASS * A ,'::: 3267.91t 3258.75 76.49 -67 94 2822.12 2508.59 65.88 - 1254.70 269.49 1404.02 1378.55 25.47 PASS 3300.00 3289.69 82.85 - 73 2850.94 ,.. 2532.48 71.34 - 1269.87 269.45 1415.84 1390.18 25.66 PASS 1 3400.00 3386.12 102.65 -91.17 2935.02:: 2602.09 87.16 - 1314.29.. 269.2 1452.91. 1426.68 26.23 PASS 3500.00 3482.55 122.45 -108.70 3005.12 2659.6 101.28 IIIIIIIMIEMEI 269.0 1490.8. 1464.10 227. PASS - 3700.00 "' 3800.00 ... 1 -143.93 - 1 -1405.68 268.1 1573.85 1546.19, 27.6. PASS 3775 81 181.86 - 161.5 3155.28 - 2777.70 134.63 -1438.24 267.88 1618.81, 1590.53 28.28 PASS 3900.00 3868.2.' I , - 1479.90 267.75 1665.55 1636.55 29.00 PASS � 201.66 - 179.11 3223.47' 2829.33 150.44 o 4000 00 3964 69 221.46 -196.70 3 319.19 2901.57 173.73 - 1538.21 267.96 N 1682.47 29 89 PASS ._ .... - _ w t ` ` [a L 444 tl � �D „ - 3 4 T . 4w 6 4' 11 ' ..._ .. � q 4 El4 4200.00 4157.55 261.07 -231.8 3503.60 3040.75 220.97 - 1649.59 268.38! 1805.21, 1773.66 1. 4 PA " 4300.00 4253.98 280.87 -249.46 3585.80 3102.66 242.60 - 1699.15 268.4' 1851.65 1819.34 32.30 PASS 4400.00 4350.41 300.67 -267.05 3669.36' 3165.49 264.37 -1749.76 268.60 1898.36 1865.25 33.11 PASS 4500.00t 4446.84! 320.47 - 284.64 3762.06 3235.25 288.02 -1806.03 268.78 1945.15 1911.16 33.99. PASS . � � a r � , ,., _ ., ,:a e a. - � �, 1.. wr � 1 h �' . ®r f�� . ..0 ® , unq µ,i1 a � ",. , 1 . M - _, ..,, � r � ,�. r l �4.�.,,.. -r. a � ��:: �, m , .,. 1 V , a, � I 7 M: it a� r,:: � Y, � � r�� ,:1, , . �m n. .. �� 1 z , . -.n . ::,:s. & � Y J _ : , ... ... �f : •:' � : . 6.. +t . + , 6, - .�_°__ ,.�.., �. �_. „a �„">�xm:�a ,� -s. ..�,„. ' �v,,.,:�.y.� ,.,.� _....u� �. _- :�.�, w ,�:��...... -� ,... .rm� ,.., .y ,..+a'�: a u ..,�.+� ". � w�,. , :�k�, W�,�� u..:.. -,, -:_ 4700.001 4639.70 360.08 - 319.81 3949.02 3376.34 337.05 -1918.47 269.18 2037.71 2001.91 35.80 PASS , 4800.00 4736.12 379.88 1: 3440.96 359.49 - 1969.96 269.28 2084.01 2047.35 36.66 PASS .........._... _.... 1 -337.40 4034.65 4900.00 4832.55 399.68 - 354.99 4124.59 3508.84 382.94 -2024.11 269.43 2130.36;. 2092.80 37.56 PASS 5000.00I 4928.98 -_ 419.49) -372.58 4218.78 3579.94 408.03 -2080.58 269.62'. 2176.54 2138.05 38.50 PASS � rg' "t, i C R 3 , '9 a r dr, I 1 P v l ti - „3„ ,i III M ,. I r �^ t IL ti 1i } . 01 _ ¢ r M ° 1 k 1 r' ` ' , f � �ti. .� �, �. "- - ---.,- � � F.""-r?. � _...._ . _. � .......__ .... ' i �, � ,., _�, s �' m ?�. Im� �� .., 7�.,? .. m Ert � •,,::i4�.� if,�As.�� 5178.73 510133 454.88 - -404.01 4398.58 3715.97 457.20 -2187.40 270.0 2258.25 2217.97 40.28 PASS 5200.00 5121.86 459.05! - 407.72 4414.50' 3728.05 461.54 - 2196.79 270.08 2267.93; 2227.48 40.45: PASS I' 5300.00 5218.76; 477.50, - 42411. 4488.52 3784.08 481.82 - 2240.70' 270:1' 2314.81! 2273.59 41.23 PASS 5400.00 , 5316.27. . 494.05 - 438.81 4583.94. 3856.21, 507.99 - 2297.41 270.43 2363.55 2321.41; 42.1' PASS k 2 1 _..w.. J � , r,4m J T 4 `.. ter, _,- �„ , ,.:.t. 3,'' J"5'� .,__' <�._ • __...®. 5 .. ....... ..... Allagle1 �� HaPASS' L :, s•- M Clearance Report iM ' KBU41 -18X Version #3 B 1 Closest Approach HUGHES MARATHON Page 26 of 31 INTEQ ,REFERENCE WELLPATH IDENTIFICATION �� . ' Operator MARATHON Oil Com ' any Slot Slot #KBU41-18X Area Cook Inlet, Alaska (Kenai Penninsula) 11111111111111111KBU41 -18X Field Kenai Gas Field (NAD83) Wellbore KBU41 -18X limimanimimilimmimilimiiiimmim _ Pad #41-18 CLEARANCE DATA - Offset Wellbore: KU24 -7 Offset Wellpath GMS <0- 5820'> Facili : Pad #41 -18 Slot: slot #KU24 -7 Well: KU24 -7 Threshold Value -0 0 �, G,_. ft =we' , lated/ex#r .olated station Offset M .0 m c„a4.. -. , , . -,._ ._ ..w,a. .e ... , <. .4 ..:.. .. . ...... . .. .....,,� <.. .. e t ......> .., .. i .....,_ ....t.. >:. Ref MD Ref TVD , Ref North Ref East Offse Offset TVD Offset North Offset East Horiz C -C g Ellipse ACR A [ft] 1 [ft] i [ft] [ft] [ft] [ft] [ft] [ft] Bearing Clear Dist Sep MASD Status o ft] 5600.00 5512.88! 521.40 - 463.10 4741.70 3975.45 551.16 - 2391.28 270.88 2466.27 2423.11 43.16 PASS 5700.00 5611.83'. 532.18! 472.67 4821.80 4035.89 572.63 -2439.24 271.18 2520.44 2476.77 43.67 PASS 5800.00 UM= 541.02 - 480.52 4903.93 4097.89 594.56 - 2488.46 271.53 2576.28 2532.12? 44.16! PASS . �... 44 61 I 5900 001 5810.71 547.91 - 486.6' 4984.66 PASS 4158.81 616.12 -2536.83 271.91 2633 7. 2589 14 4 4 r y 6100.00t _ __..._._ 6010.39 555.8' 1 - 493.68 5148.79 4282.68 660.84 - 2634.78 272.811111111151M 2707.79 45.45 PASS 6200.001 6110.38 556.87 -494.60 5225.19 4340.34 681.88 2680.28 2815.29 2769.50 45.79 PASS 6202.62 6113.01. 556.87 -494.60111111111EaVEN 4341.83 682.42 - 2681.45; c 2816.9' 2771.14 45.80 PASS 6300.00 ' 6210.38; 556.871 -494.60 5303.8' 4399.71 703.55 272710 c 2878.22 2832 10 46 12 PASS .1 6500.00 : 6410.38 556.87 - 494.60 5503.57 4551.72 758.00 -2844.65 274.89 3002.97 2955.87 47.10 PASS 6600.00 6510.38 556.87 -494.60 5587.12 4615.72 781.00 2893.18 3064.83 3017.35 47.48 PASS - 494.60 5664.12 4674.71 802.52 2937.75 3126.69 3078.86 47.83 PASS 6700 OOfi, 6610.38 S56.8T 6800.00 N 6710.38 556.87 - 494.60 5740.91 4733.53 824.00 -2982.19 276.13 3188.64 3140.46 48.18 PASS I , � 7000.00 1 6910.38 556.8 - 494.60 5811.01 4787.22 843.60 -3022.76 276.47 3313.85 3265.46 48.39. PA F 7100.00 7010.3: 556.87 - 494.60 5811.00 4787.22 843.60 - 3022.76 276.47 3378.79 3330.51 48.28 PASS " 7200.00 7110.38 556.87 - 494.60 5811.00 4787.22 843.60 - 3022.76 276.47 3445.41 3397.23 48.19 PASS 7300.00 7210.38 556.87 - 494.60 5811.01 4787.22 843.60 - 3022.76 276.47 3513.62 3465.51 48.11 PASS � s_ _' , ., 1 a . ,s,°" = r x - t .., r�wr�,u r . d.4 h . ° a +C- ` dw: _; � . r +� "k °I . I 'I ,i �q - ._ .� „s a 3 ° ,;�d� ` o �M '.,ml rps+ �^ .s °y i1 as J, .r n��E® •a.�4. >�,.x..,, � � ' .w �� , �dl . ��1' " . � � "�',- �� - ��.�.,,�a� r ;rte � . ��„ ��,u��9Wm� � � �� ._ ��r:i �� N�� .n�. � „il. &` �.� 7400.00 7310.38 556.87 - 494.60 5811.00 4787.22 843.60 - 3022.76 276.47 3583.31 3535.28 48.04' PASS 7500.00 7410.38 556.87', -494.60 5811.00 4787.22 843.60 - 3022.7. 276.47 3654.42, 3606.43 47.98 PASS 7600.00 7510.38 556.87 - 494.61 5811.00 4787.22 843.60 -3022.76 276.4 3726.85 3678.90 47.95 PASS 7700.00 7610.38 556.87 - 494.60 5811.00 4787.2 843.60 - 3022.76 276.47 3800.53 3752.61 47.92 PASS 7' �,a . 7: 1 � r _ , 9 _ .,.. _ r m x ` t �I�r tl � � I � e' L1 I i n m. r A. rz A V ° `'' .. � r . � �r .. �- 4 >) r k� � � � . � � � yl.�'3 � ._ .. ... �� u - • k .... 4ik'.� �� - 7900.00t 7810.38 556.87 - 494.60 5811.00 4787.22 843.60 - 3022.76 276.47 3951.37 3903.45 47.92 PASS 8000.00 7910.38, 556.87 - 494.60 5811.00 filliMigliala 843.60 - 3022.76 276.47 4028.39 3980.45 47.94 PASS , 111111111111W01 8010.38 556.87 494.60 5811.00 4787.2 843.60 1 - 3022.76, 276:47 4106.41 4058.43 47.98' PASS - 3022.7.: 276.47 4185.36 4137.33 48.03 PASS 8200.00 , 8110.38 556.871 -494.61 5811.00 4787.22 843.60 M Clearance Report KBU41-18X Version #3 Closest Approach BAKER HUGHES MARATHON Page 27 of 31 INTEQ REFERENCE WELLPATII IDENTIFICATION _i,. Operator MARATHON Oil Company Slot Slot #KBU41-18X Area Cook Inlet, Alaska (Kenai Penninsula) IIIIIIIIIIIIIICBU41-18X Field Kenai Gas Field (NAD83) Wellbore KBU41-18X ZEN. Pad #41-18 CLEARANCE DATA - Offset Wellbore: KU24-7 Offset Well • ath: GMS <0-5820'> acuity: Pad #41 Slot: slot #KU24 Well: KU24 Threshold Value=0.00 ft = inter . dated/extra . (dated station Ref MD Ref TVD Ref North Ref East Offset MD ! Offset TVD Offset North Offset East Horiz , C-C Ellipse , ACR AC." [ft] [ft] 1 [ft] i [ft] [ft] 4 ; [ft] [ft] 1 [ft] ; Bearing Clear Dist [ Sep ft i MASD Status 0 ft 1 i ft ' 8400.00t 8310.38 556.87 -494.60 _ 581L00 4787.22 , 843.60 -3022.76 276.47 4345.86 4297.68 48.17 PASS 8500.00 8410.38 556.87 -494.60 5811.00 4787.22 843.61 -3022.76 276.47 4427.31 4379.04 48.27 PASS 8600.00 8510.38 556.87 -494.60 . 5811.00 4787.2 843.60 -3022.76 276.47 4509.52 4461.14 48.38 PASS 8700.00 8610.38 556.87 -494.61 5811.00 4787.22 843.60 -3022.76 276.47 4592.42 4543.92 48.50 PASS ' 01 y. "WWW44 7tiqgg) 4, . = , fittfr LLPATR COMPOSITION Offset Wellbore : KU24-7 Offset Well • ath: GMS <0 Start MD End MD Positional Uncertainty Model Log Name/Comment Wellbore -9.00 5811.001 Generic . o - continuous Standard GMS <0-582(Y> KU24-7 ___ OFFSET WELLPATH MD REFERENCE - Offset Wellbore: KU24-7 Offset Wellpath: GMS <0-5820'> MD Reference: Glacier 1 (RKB) Offset TVD & local coordinates use Reference Wellpath settings .. (See WELLPATH DATUM on page 1 of this report) Clearance Report KBU41 -18X Version #3 B ,1E Closest Approach HUGHES MARATHON Page 28 of 31 I T CE WELLPA7 H IDENTIFICATION ,._ .�.�. _ __ Operator MARATHON Oil Company _ _ __.. _ Slot Slot #KBU41 -18X �_ _ Area Cook Inlet, Alaska (Kenai Penninsula) � KBU41 -18X Field Kenai Gas Field (NAD83) Wellbore ' KBU41 -18X Pad #41 -18 IIIIIIIIIIIIIIIIIIIIIIIIIIIIFMIIMIIIIIIIIIIIIIIIIIIIIIMIIIIIIIIIIIIIIIIII - _ .,. - .. .. . , k n ro -gi . _ . _ w-- �.... �,-- , ,e 0 , m sw,- .e , , ,.�, ,, . ,,, * _ ,, � _ > ... . „ CLEARANCE DATA Offset Wellbore.- KU24 -7RD Offset Well ath MWD <3777 - 4800> Pad #41 -18 Slot: slot Well: KU24 7 y: Threshold Vatue =0 OQ ft j� = interpolated/extrapolated station 1 Facilit -r- Ref MD Ref TVD Ref North Ref East Offset MD Offset TVD 3 Offset North Offset East Horiz C -C Ellipse ACR A [ft] [ft] [ft] i [ft] 1 [ft] a [ft] j [ft] p. [ft] Bearing Clear Dist Sep I MASD Status 0.00 0.00 0.00 0.0' 0.00 0.00 -280.92 - 208.72 216.61 349.97 336.75 13.22 PASS 100.00f 100.00 0.00 0.00 99.96 99.96 - 280.92 - 208.72 216.61 349.97? 336.74 13.23 PASS - .. I I 200.001 200.00 0.00! 0.00 199.68, 199.68 - 280.68 -209.18 216.71 350.05 336.78 13.27, PASS .55 0.01 300.96 300.95 - 279.72 - 210.21 216.93 349.90 336.55 r � I ', r 300 00 � 344.451 344.45 0.00 0.00 344.07 344.03 -278.82 -211.34 217.16 349.86 336.47 13.40 PASS 400.00 400 01 0.00 0.00 397.41 397.28 - 277.07 -213.96 217.68 350.08, 336.61 13.47 ' 500.00 500.00 0.00 0.00 488.08 487.61 -273.841111111111113111 218.93 338.50 Maga PASS 0 01 5 84.43 583.25, - 269.89 _s__ - 232.06 220.69 356 33, 342.28 14 06 PASS 600 00 600 00 - � _ 1 800.00 800 01 0.00, 0.00 � � � 764.02 760.1 -261.19 6 � 14.64 PASS - 261.31'. 225.01 371.60 356.96 1 #� 900.00 ' 900.00; 0.00, 0.00 856.08 850.08 - 256.69 -280.63 227.55 383.58 368.56 15.02, PASS 1000.00t 1000.00 0.010 _ 0.00 944.91 936.04 -250.85 - 302.23 230.31 397.94 382.57 15.37 PASS �1100 00 1100.00 0.01 0.00 1030.87 1018.1: -244.07 - 326.62 233.23 415.86 400.10 15.76 PASS � .F'y� tl "�$ n d . . " �. � .. , I "� �h d�� r, d� •I : µ tl � yr aW � 'w '.�r F ti�� ,. ,sd ^ �w ^� + 7 tl {�' ,.� ��i6 _y ,:h' � �`,�. auP l i ] r l9 >s� �.� �.. r � . "A uv� w: �. z�� '9', �,�' � bm �,, .r.�,� nib � b�1 1300.00 1300.00 0.00 0.00 1195.43 1172.0 -227.38 - 382.30 239.26 462.84! 446.17 16.67 PA 1400.00 1400.00, 0.00 0.01 1272.98 1242.7. - 218.03 - 412.81 242.10 492.62 475.45 17.17 PASS i 1500.00 1500.01 0.00 0.00 1346.94 1308.87 - 208.2 - -444.46 244.90 526.71 509.06 17.66 PASS 1600.00 1600.01 0.00 0.00 1417.25 1370.38 - 198.01 - 476.95 247.45 565.17 547.27 17.90 PASS '4xr, +ill� , L",J .;�r . _:. - -- -- " "�i*� ,w•�+ �.`t•� ��,d.��':�'ri.�'.�4 .�i y r 1800.00 - 1800.00' 0.00! 0.00 1564.28 1494.78 -173.92 - 551.4711 653.86 635.18 18.68, PASS 1900.00 ; 1900.0 1 0.00 0.00 l637.6•µ 1555.96 -161.03 - 589.8• 254.73 701.57 682.7' 18.82 PASS 2000.00 2000.01. 0.00 0.01 1705.18 1611.52 - 149.03 - 626.32 256.62 751.94! 732.90 19.04! PASS 2100.00 2100.00 0.00, 0.00 1770.64 1664.52 -137.04 - 662.83 258.32 804.84 785.54 19 30 PASS tl .-r y _ ,, ,.. . h 'ntl11,1, �' 5 �? . 1r r r �y a R,�':? ,, ' 1" , A��,_ . , ri d ''n ; : :, �' ,r ' - _ - ,, 2300.00 2300.00 0 00 0.00 1905.14 1771.27 $ �n :' w d�.�'"��"�" t r , fNu7 .u..� o^ ui i .w� V { J �' ,4h , .. ao,. �w.mm . ni ,a �,�� ._.. _..�.,,, & .. ~ " a � 1 � tli ... *� � ,�, ...e..,, W. 2r _..._ ..�.,...0 ', _._ _.._ ; - 111.30 - 740.49 261.45, 916.66 896.79 19.8 PASS 79 19.8 `; PASS 2400.00 2400.01: 0.00 0.00, 1960.04 1813.85 - 100.30 , , ,c 262.61 975.55 955.49 20.0. PASS 2500.00 2500.01; 0.00, 0.00 2030.80 1867.71 -85.6' -816.83 264:0 1036.51 1016.06 20.4'; PASS 2600.00 t 2599.98 t -1.16 2132.41 1946.00 - 65.07, - 878.23 265.6 - 1096.06, 1074.94 21.1 PASS : . - !, ( ' 'd ^ 1 � n . ' y ur Ti Li w M Clearance Report { KBU41 -18X Version #3 BAKER ildi Closest Approach liUIIIE MARATHON Page 29 of 31 REFERENCE WELLPATH IDENTIFICATION , Operator MARATHON Oil Company �.., Slot ; Slot #KBU41 -18X Area , Cook Inlet, Alaska (Kenai Penninsula) KBU41 -18X ' Field Kenai Gas Field (NAD83) Wellbore 1 , KBU41 -18X BIENIII Pad #41-18 ,, „„ ... ,,_ . CLEARANCE DATA - Offset Wellbore• KU24 -7RD Offset Wellath: MWD <3777 -4800> acili Pad #41 18 Slot: slot #KU24 7 Well: KU24 -7 Threshold Value -O.OQ ft late +olated/eatra'olated.station � Ref MD Ref TVD Ref North 1 Ref East Offset MD Offset TVD Offset North Offset East Horiz C -C Ellipse ACR 0 A 1 [ft] [ft] a [ft] [ft] [ft] [ft] [ft] [ft] Bearing Clear Dist Sep NASD i Status =; o ft ft ft 2800.00 2799.45 11.73 - 10.42 2367.89 2133.75 -19.61 - 1012.82 268.21 1203.72 1181.05 22.67 PASS 2900.00 2898.71 20.85 -18.51 2462.01 2210.82 -2.20 - 1063.99 268.7 1251.69:; 1228.46 23.23 PASS 3000.00t 2997.47 32.54! -28.91 2569.53! 2299.20 17.69 - 1121.90 269.22 1297.09 1273.22 23.86 PASS 3100.00 ` 3095.6 46.81 -41.57 2667.75 2380.61 36.14 -1173.6. 269.4. 1339.02 1314.56 24.47 PASS 3267.91 3258.75 76.49 -67.9' �_,.... '1 " ., -i.3 8 i1 1353 25ri1.` gig 2508.59 65.88 1254.70 269.49 1404.02 1378.551 25.47 PASS _. _ 3300.00_ 3289 69; 82.85 -73.58' 2850.94 2532.48 71.34 -1269.87 269.45 1415.84 1390.18 25.66 PASS 3400.00 3386.12, 102.65 - 91.17 2935.02 2602.09 87.16 - 1314.29 269.27 1452.91, 1426.68 26.23 PASS 3500.00 3482.55 122.45! - 108.76 3005.12 2659.64 101.28 -1351.75 269.0 1490.86 1464.10' 26.7 6 PASS t 3700.00 3675.41 162.05 - 143.93 3100.52111111111MEE 122.14 -1405.68 268.19 " 1573.85 1546.19 27.66 PASS -1.1. . 3155.28, -1438.24 : 3800.00 3771.8' � 181.8. - 2777.70 134.63' 1438.24; 267.88 1618.81 1590.53 28.28 PASS 3900.00' 3868.2. 201.66; - 179.11 3223.47 2829.33 150.44 - 1479.90! 267.75 1665.55 1636.55 29.01; PASS 4000.00 3964.69 221.46 - 196.70 3319.19! 2901.57 - 1538.21; 267.9. 1712.35 . 1682.4 ! 29.89 PASS ' ' ... .._' ° r'c 00„00100,101m004,00461 ,' , 'm'? t'. ^ ` da I : { I d : 4 , 3 rP, sl,. � M :. , � �'� y. 4200.00 ! 4157.55 261.07 - 231.87 3503.60 3040.75 220.97 - 1649.59 268.38 1805.21! 1773.66 31.54 PA 4300.00 4253.98 280.87 - 249.4. 3585.80! 3102.66 242.60 - 1699.15 268.4' 1851.65 1819.34 32.30. PASS 4400.001 4350.41', 300.67 - 267.05 3669.36 3165.49 264.37 - 1749.76 268.61 1898.36 1865.25 33.11 PASS ,, 4500.00 f 4446.8' 320.47 284. 2_88.02 1806 .0 268.78 1945 15 1911.16 33.99: PAS . I r 6 3762.06 ,,,,, � �s�� 35.25 + � r + - ,. �. - , " 0 2 L :� .r .. ,�a , . i � :1 '� , .� .�„ �� - _�: 4700.0 IPli 11 4639.71 360.08 - 319.81 4113.2 sx 3500.69 413.31 -1997.16 271.82 20 � r 0, � � �� z_ � �� _. 4700.00 28.22 1990.06 38.16 PASS 0 - - 2041.85' 272.48 ' 2067.18 2028.40 ; 38.79 PASS 4800.00 4736.12'. 379.88': - 337.40 4204.12' 3568.79 453.. t 4832.55 - 354.99 2106.35 2066.77 39.58 PASS ' 4309.83 3648.26 499.91 - 2093.99 273.31 , , !; 5000.001 4928.98 419.49 - 372.58 4400.59 3716.96 538.99 - 2138.57 273.87 2145.23 2104.87 40.36 PASS _ks ¢ - r 7 s I � Ir .r R r� i WI _ '# q � i i� : a 1p 1 Q ^F. y p ^wr r '.err - - . r .Yn;v; 7 ! - s v � ; i . e _, dy 7� q __. ++ti'r t' . n_,J, , s " ,., ,. `. `.. m e... - - -- P i � Ali 4 ' : i�..d ....._.._ __...__ .. _.._� �.i_. ..� I��,�� ...... . ... 1_ ^ �wi�x � .. J. � . W.-,_..._. a. �r. �.Wul�.,.,..�ys�..�z._..a.,S.� -,-., d � �' „.. GB.S �..� �s. , 5178.73t 5101.33! _ 454.8 - 404.01 4587.03 3859.00 619.09' - 2228.97 275.14 2213.79 2171.73 42.06 PASS ;, 5200.00 5121.8.: 459.05 - 407.72, 4606.82 3874.17 627.44 -2238.55 275.26 2221.94 2179.69 42.25, PASS 5300.00 5218.76 477.50' - 424.11 4718.00 3959.99 673.58 -2292.08 275.99 2261.03 43.33; PASS 5400.00 t 5316.2 494.05 - 438.81 4800.00 4023.45 707.78 IIIIIIIIIIBIBM 276.4' 230 1.77; 2257.62 44.15 PASS r �a' cep �.. �� M Clearance Report KBU41 -18X Version #3 BAKER Closest Approach HUGHES MARATHON Page 30 of 31 INTEQ REFERENCE WELLPATH IDENTIFICATION Operator MARATHON Oil Company Slot Slot #KBU41 -18X Area Cook Inlet Alaska (Kenai P enninsula KBU41 -18X Field Kenai Gas Field (NAD83) Wellbore KBU41 -18X 1 Pad #41 -18 IIIIIIIIIIMIIIIIIIIIIIIIIIIIIIIMMIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIII CLEARANCE DATA - Offset. Wdllbore• KU24 -7RD Offset We 'oath: MWD <3777 -4800> Facile Pad #41 -18 Slot: slot # ty: �� ter olated/extrapolated s tation ..M� KiI2411, " R'el KII24 -2� Threshold �slne =Q00 ft =1n Re Re[ Ref N North '..--- East Off[ft OffsetTVD Offs [ ft] orth Offs[ftEast B o nng Clear -C ES Pse MASD , -.:S t ft us - 463.11 4800.00 4023.45 707.78 5600.00 5512 88 521.40 IIIIIIMEM 275.70 2396.42 2352.70 43.72 PASS 5700.00 5611.83 532.18 - 472.67 4800.00 4023.45 707.78 IIIIIIIIEBEE 275.40 2451.09 2407.62 43.46 PASS 5800.00 IMINEW 541.02 - 480.52 4800.00 4023.45 707.78 1111111MBINIME . 2510.17 2467.01 43.17 PASS �� 5810 71 547 91, - 486.6' 4800.00 4023.45 707 78 274 95 2530.50 2530.50 42 85 PASS 5900 00 , . _ __ __:_. _ :�1 : -y 4Ij` � �1', � iu 6100.001 6010 391 555.84. - 493.68. ^ 4800.00 4023.45 707.78 274.73, 2710.61 2668.44 42.17 Y PASS 6200.00 4 .. 6110 38, 556.87 -494.6 • _ 4800.00 4023.45 707.78 274.70 2784.07 2742.25, 41.83 PASS 6202.62 , 6113.00 556.87 -494.61 4800.00 4023.45 707.781111111151361 274.70 2786.0' 2744.22 41.82 PASS 6300.00f 6210.38 556.871 - 494.60 4800.00 4023.45 707.78 274.70 2859.80 2818.31 41.49 PASS 6500.00f � _ _ - 6410.38; 556.87 - 494.61 4800.00 4023.45 707.78 111111111115101E 274.79 3015.50 2974.60 40.90 PASS 6600.00 ; 6510.38 556.87 - -494.60 4800.00 4023.45 707.781111111.15M 274.70 494.60 4800.00 4023.45 707.78 274.70 3 095 6 .2 3054.61 40.65 PASS ' 6700.00t !" 6610.38 556.87 4 1 40.43 PASS 6800.00f 6710 556.87 - 494.60, 4800.00 4023.45 707.78 - 2331.17 274.70 3258.13 3217.88 40.25; PASS d ._ va XN Y 0 r i'. a& 4 pF, ' ' _. �I a pRv �v i �° . ., a3wd rU F m . 7000 00 6910.38 556.87 - 494.61 4800.00 4023.45 707.78 274.70 3424.93 3384.97] 39.96 PAS 7100.00 ! 7010.38. 556.87 - 494.60 4800.00 4023.45 707.78 11111111116EBEE 274.70 3509.64 3469.78 39.86 PASS 7200.00 ' 7110.38: 556.87 - 494.60 4800.00. 4023.45 707.78M 274.70 3595.13 3555.34 39.78 PASS 7300.00 7210.38 556.87 - 494.60 4800.00 4023.45 - 2331.17 274.70 3 3641.62 39 PASS . ,. � r ; ,i W i dle I d ; rj, i.. . d dd� dPf� I i ii u n its A uw Y ';�.. �u. u v r � � r u� 1 . w � dbk v ',w G, y .a 0. �' _ ��__ -� � � �. _� � d , _ � _ X07 707.7: � � 7 �.,� ,.� . ��d � ,� ... � � � � � -�� ,� +' �* � �' � ' � �� +;� " ill., ' 7400.001 7310.38 556.87 - 494.60 4800.00 4023.45 707.78 274.70 3768.25 3728.55 39.70 PASS 7500.001 7410.38; 556.87,' - 494.61 4800.00 4023.45 707.78 274.71' 3855.79 3816.09 39.69 PASS 7600.00 7510.38 _ 494.60 4800.00 4023.45 707.78 274.71 3943.92 3904.21 39.71 PASS 40 y d ,J 2 60 3 992 .86 39 74 P ASS ., 7700.09 p 7610.38 556.87 -494.60 4800.00 4023.45 707.78 , 274 70 403 7900.00 7810.38 556.87 494 60 4800.00 4023.45 707.78 , - 2331.17 274.70 4211.49 4171.62 39.87 PASS 8000.00 ; -494 60 4800.00 4023.45 707.78 �►7 cC l 274.70 4301.63 4261.67 39.96 PASS 7910.38 556.87 ► c� 8100.00 1 8010.38 556.87 -494.60 4800.00 4023.45 707.78 E 274: "70 4392.20 4352.1 40.0." PASS 8200.00 8110.38 556.87; - 4 94 61 4800.01 4023.45 707.78 274 70 4483.17 4442.98 40.18 PASS ^ .,E. n ! �M ' A 1 i!h'� "t ^' i t"4 k d r4, N E 1 I' a }< s st& M Clearance Report X11 KBU41 -18X Version #3 BAKER Closest Approach HUGHES MARATHON Page 31 of 31 INTEQ ,REFERENCE WELLPATH IDENTIFICATION ' Operator MARATHON Oil Company Slot Slot #KBU41 -18X Area Cook Inlet, Alaska (Kenai Penninsula) Well KBU41 -18X Field Kenai Gas Field (NAD83) Wellbore 3 KBU41 -18X Pad #41-18 CLEARANCE DATA - Offset Wellbore: KU24-7RD Offset Well . ath: MWD <3777-4800> Facili : Pad #41 -18 ' Slot:. slot #KU24-7 Well: KU24 -7 Threshold Value =0.00 ft = inter olated/ /atra • olated station Ref MD Ref TVD Ref North Ref East Offset MD Offset TVD Offset North Offset East Horiz C -C Ellipse ACR A L [ft] [ft] [ft] 1 [ft] [ft] [ft] [ft] [ft] Bearing Clear Dist Sep MASD Status ° ft [ft ft 8400.00 8310.38 556.87 - 494.60 4800.00 4023.45 707.78 IIIIIIEBHEII 274.70 4666.22 4625.74 40.47 PASS 8500.00 8410.38 556.87 - 494.60 4800.00 4023.45 707.78 -4 274.70 4758.25 4717.62? 40.64! PASS 8600.00 8510.38 556.87 - 494.60 4800.00 4023.45 707.78 274.70, 4850.60 4809.79 40.81 PASS 8700.00 8610.38 556.87 - 494.61 4800.00', 4023.45 707.78 IIIIIIIIIEIBEE 274.70° 4943.25! 4902.25', 41.00 PASS r CIA' , r ", 4- .; HOLE & CASING SECTIONS Offset Wellbore: KU24 -7RD Offset Wellpath: MWD <3777-4800> String/Diameter Start MD End MD Interval Start TVD End TVD i End N/S End E/W [ft] [ft] [ft] [ft] [ft] [ft] [ft] 8 Sin Open Hole 3777.00 4800.00 1023.00 ; 4014. -. 45 - 616.85; 130.12' - 774. z= "{�Y=,.xs+'Yd�J�.• �d?`�a�.,R..t3« �u^„s4Y.%'�:�'t .•�.»» eo «..M.icPe _ r-- t»�.!�i�M`v:. >..e m .- �smwawu x, - ...moo -:._m s�a..<,,.� naame �msa,,;nmn .s�,am».. , s.viuce��a�bY3,,.�t+kn�,+mi� ' k' a` z^.+, 2�4HSUCbn. R: tiFrv" a". fiL' 3i+„ u) T�*: C: uM€ �& s�wRSnwaC ;R�IR8T+.9a85LTaa��hT.�S.rNt WELLPATH COMPOSITION Offset Wellbore: KU24 -7RD Offset Wellpath: MWD <3777 -4800> Start MD End MD Positional Uncertainty Model Log Name /Comment Wellbore Iftl [ft] - 9.00 3777.00 Generic 1 o continuous Standard) GMS <0- 5820'> KU24 -7 3777.00 4800.00 NaviTrak Standard MWD <3777 -4800> KU24 -7RD OFFSET WELLPATH MD REFERENCE - Offset Wellbore: KU24 - 7RD Offset Wellpath: MWD <3777 -4800> MD Reference: Glacier 1 (RKB) Offset TVD & local coordinates use Reference Wellpath settings (See WELLPATH DATUM on page 1 of this report) _ - 'V • • .., Marathon Oil Company L---- IFE Well Name: KBU 41-18X Location: Kenai, Alaska. _ _... -1 + T ED FLUIDS F 1 TE A T _ i IN G , ENGINEERIN _., _ mi LAit , , . ,__ _ __ ___,.... _ Vii ...... wi =Tolnigini MI Prepared For: MARATHON OIL COMPANY Well KBU 41-18X Kenai Peninsula, Alaska , 1 Prepared by: Jim Dwyer Reviewed by: Hal Martens Presented to: Will Tank February 14, 2008 MI SWAC •,,..-- „......, • • Marathon Oil Company IFE Well Name: KBU 41 -18X Location: Kenai, Alaska. Marathon Oil Company PO Box 190168 Anchorage, Alaska 99519 ATTN: Will Tank Will: Enclosed is the recommended drilling fluid program for the KBU 41 -18X Well to be drilled this year. The following is a brief synopsis of the program. Overview: KBU 41 -18X is a development well targeting the Tyonek formation at the Kenai Gas Field. Flo -Pro fluid will be used for the intermediate and production intervals. After logging the production interval, the well will be completed with a 3 -1/2" excape system cemented in place. Surface Interval: The surface interval will be drilled with the standard Gel /Gelex spud mud. No problems were noted in this interval while drilling the offset wells. Intermediate Interval: This interval will be drilled with a Flo -Pro NT fluid. After drilling out the surface cement, the well will be displaced to a Flo -Pro KC1 fluid. While the program calls for SafeCarb bridging material, Mix II should be added to the mud system prior to drilling the Sterling A8 sand ( +/- 3972' MD). This is a highly porous depleted zone that has contributed to losses of whole mud in the past. Production Interval: This interval will be drilled with the same fluid that was used to drill the intermediate interval. The fluid will be pre- treated with Bicarb and/or citric acid prior to drilling out the cement. Any further fluid dilutions will be made in order to keep the mud properties at the recommended specifications. Fluid loss should be maintained @ 4 -6 cc's API for this interval. Estimated pressures in the lower Tyonek will require a mud weight of up to 12.2 ppg @ + 7300' TVD. Completion: The cement will be displaced with 6% KCl brine for the completion phase of the program. Conqor 303A and Sodium Meta Bisulfate will be added to the drilling fluid that will be left between the 3 -1/2" completion string and the 9 -5/8" casing on the final circulation prior to cementing. Jim Dwyer Sr. Project Engineer Reference Wells: KBU 22 -6; KBU 11 -8Y; KBU 41 -6; KBU 11 -7; KTU 43 -6X RD2 NOTE: This program is provided as a guide only. Well conditions will always dictate fluid properties required. SWACS)-- • • I FE Marathon Oil Company Well Name: KBU 41 -18X Location: Kenai, Alaska. EXECUTIVE SUMMARY ,„ 3 Our overall goal is no spills and no incidents while providing fluids and solids control services to Marathon Oil Company. 1R4wel- - The solids van will continue to assist in removal of LGS for minimizing mud weight CZ with estimated cost of $0.34 per lb of solids removed. With the revised fluid formulation (utilizing the intermediate interval fluid for the FM production interval), we expect to drill this well for a product cost of less than $34.36 per foot. We estimate the use of less than 6761 barrels to drill this well, not withstanding IFE any losses to the formation. MI SWAB • • Marathon Oil Company Well Name: KBU 41 -18X Location: Kenai, Alaska. Interval Benchmarks and Targets Drillin Intervals Depth Benchmark 1 ,Benchmark-2===== Benchtnarl 3 benchmark 4 In terval Fluid cost per Volume Usage Solids Removal foot 0 — 1500' < $6.46 ft < 1892 bbls 1500 — 5473' < $39.12 < 3229 bbls 5473 — 8797' < $40.23 ft < 933 bbls Total Project Avg. Max. Targets for < $33.97 ft < 6054 bbls < $0.34 lb No Spills from Solids Drilling Interval Van Operation Mi SWAIC • • Marathon Oil Company -�' IFE Well Name: KBU 41 -18X Location: Kenai, Alaska. Project Summary Casing Hole Casing Depth TVD Mud Mud Sum Interval Size Size Program System Weight Days Mud Cost (in) (in) (ft) (ft) Solids Control (ppg) 13 -3/8" 16" ° 1500' 1500' Gel /Gelex Spud Mud 8.6 — 9.4 5 $15,084 Screens 165/175 mesh Desilter Centrifuge Van 9 -5/8" 12 -1/4" 5473' 5388' Flo -Pro w /SafeCarb 9.0 — 9.5 7 $162,997 Screens 200 mesh Desilter Centrifuge Van 3 -1/2" 8 -1/2" 8797' 8709' Flo -Pro w /SafeCarb 9 $140,205 Screens 200 - 10 - 12 230 mesh Desilter Centrifuge Van 3 1/2" 8 -1/2" Completion 8797' 8709' 6% KC1 8.55 3 $14,600 ➢ 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 includes provision for whole mud losses in the intermediate interval (290 barrels) ➢ Cost includes daily engineering. MISWAC • • Marathon Oil Company Well Name: KBU 41 -18X ffr 1FE Location: Kenai, Alaska. Estimated Product Usage Summary r e C `e i , 4v l 9 g I� i - 9 EA' A:), i - ! 5 rt € ,, ^r "m' A - " alC 1I'I@ R a ! sr !r i - ....r �` "4,.M'� _ - : �e ".r� six .a...: �' .. �.�dWb� muu T_ � +� � _ .:_ . � :�� ._. .n f,.1...,�.w�� "�ay.�wn �S ".e. a � v�e .....�..� Asphasol Supreme 0 0 98 0 98 Bicarb 0 16 16 0 32 Caustic Soda 9 32 16 0 48 Conqor 303 0 0 0 5 5 Conqor 404 0 9 7 0 16 Defoam X 0 18 9 0 27 Desco CF 8 0 0 0 8 Engineer Service 5 7 9 3 24 FloVis 0 194 65 0 259 Gelex 24 0 0 0 24 KC1 0 1356 686 210 2252 M -I Gel 568 0 0 0 568 M -I WATE 0 646 5228 0 5874 Mix II 0 258 0 0 258 Polypac UL 9 97 49 0 146 Resinex 0 0 98 0 98 Safecarb 0 1292 490 0 1782 Soda Ash 9 16 16 0 31 Sodium Meta 19 32 33 5 89 Bisulfate MI SWAG• • ■ Marathon Oil Company MNIMappggp W NU 4 Location: ell ame: Kenai Alaska. Offset Well Information Well Hole Size Depth PPG PV YP FL Comments KBU 22 -6 16 182 8/ 14 35 14.6 Spud in, drill ahead 1550 9.2 14 22 6.4 Drlg ahead 1680 9.2 14 20 7.8 DrIg to casing point, run surface casing 12.25 3453 9.3 8 11 9.2 Drlg out, displace to FloPro, Run LOT, drlg ahead 4649 9.4 12 14 8.8 Drlg ahead 5338 9.2 14 18 5.8 Lost partial returns @ 4929' spot 50 bbl LCM pill, regain returns 6032 9.3 14 16 5.4 Lost partial returns @ 5840', add LCM to mud 6535 9.6 17 19 5.2 Reduce ppg, pump LCM pills, run casing, cement same 8.5 7095 9.85 17 21 5.8 DrIg out cmt, LOT, drlg ahead 8136 9.85 17 23 5 DrIg ahead, short trip OK, drlg ahead 8855 10.3 19 21 5.2 DrIg to csg point, short trip, some tight spots, POH for logs 8855 10.45 19 22 5.8 Logging well 8855 10.65 19 20 5.2 RIH, weight up to 10.6 PPG, condition mud, POH 8855 10.65 19 19 5.8 Run excape string, cement same, no losses, disp to brine KBU 11 -8Y 16 498 8.65 11 16 17 Spud in, drill ahead 1550 9 9 16 8.8 Drlg to csg point, short trip OK, POH 1550 9.1 9 19 10.6 Run & cement surface casing 12.25 3774 9.1 9 17 7 Drlg out, disp to FloPro, drlg ahead 5033 9.3 13 15 7.8 Drlg to 3884', short trip OK, drlg ahead 5820 9.45 17 23 5.8 Drlg to csg point, add 3% Lubetex (torque), POH 5820 9.55 19 22 5.8 Log well, wiper trip, 5820 9.7 20 26 5.4 Run csg, cement same, lost partial returns 8.5 5840 9.3 14 18 6.2 Drlg out, LOT, drlg ahead, add EMI -920 and Lubetex for torque 7574 9.75 17 27 5 Drlg ahead 8220 10 16 27 5.4 Drlg to TD, increase PPG to 10.0 for gas 8220 10.5 17 28 5.8 POH, wireline well, increase PPG to 10.5 for gas 8220 10.8 17 26 5.2 Run and cement excape string, disp to brine Mi SWAG 1 411111► Marathon Oil Company Well Name: KBU 41 -18X Location: Kenai, Alaska. Well Hole Size Depth PPG PV YP FL Comments KBU 41 -6 16 1616 9.05 18 24 9.6 Spud in, drill ahead 1862 9.3 16 17 7.8 DrIg to casing point, run surface casing 1862 9.3 12 14 7.2 Cement surface casing 12.25 3431 9.3 12 16 8 DrIg out, displace to FloPro, Run LOT, drlg ahead 5044 9.2 13 17 8.4 Drlg to 4206', wiper trip OK, drlg ahead, pump sweeps every 500 ft 6289 9.2 13 19 7.4 Drlg to 5278' lost returns, stopped with LCM, drlg ahead 7105 9.3 14 23 7.6 Drlg to 6897', wiper trip OK, drlg ahead 7220 9.3 11 23 8.6 Drlg to casing point, wiper trip Ok, POH to run casing 7220 9.8 12 18 8.4 Run 9 -5/8" csg, cement same, bump plug 8.5 7374 9 12 17 6.4 DrIg out, disp to new fluid, LOT = 16.0 PPG, drlg ahead 7735 9.2 10 16 5.3 Trip for core #1 7776 9.3 12 13 5.1 Core #1 7835 9.5 14 14 5.2 Core #2 8445 9.7 14 16 5 Drlg to core point 8535 9.95 14 19 5 Core #3 8807 10.1 16 20 4.6 Drlg ahead, increase Lubetex to 4% 9733 10.3 16 19 4.6 TD well, 9733 10.6 15 18 4.4 Wiper trip, inc PPG to 10.6 for gas, POH for logs 9733 10.8 15 20 5.2 Log well, wiper trip, treat for running coals, POH 9733 10.8 14 21 5.6 Run and cement excape string, disp to brine KBU 11 -7 16 187 8.7 7 28 16 Clean out conductor, spud in 1477 9 8 23 9.2 Drlg ahead 1725 9.2 9 20 6.2 Drlg to casing point, run surface casing 1725 9.3 8 22 7.4 Cement casing, no losses, BOP's 12.25 2822 9.4 8 18 7.2 Drlg out, displace to FloPro, Run LOT = 15.2 PPG, drlg ahead 4460 9.1 11 18 7.8 DrIg ahead with miminal losses 5080 9.3 11 15 8.6 Short trip, OK, drlg to core point @ 5080' 5160 9.4 12 20 7.5 Core #1 5249 9.3 15 20 6.7 Core #2 5449 9.4 15 12 7 Open core runs to 12 -1/4 ", drlg ahead 5585 9.6 17 23 7.3 Logging 5585 9.5 16 24 7 Fish for RFT tool parts 5585 9.5 17 21 7.4 Recover fish, log with RFT tools 5585 9.5 17 22 8.2 Run & cmt 9 -5/8" casing 8.5 5869 9.5 22 26 6.8 Drlg out, LOT = 15.2 PPG, drlg ahead 6940 9.9 21 23 5.8 DrIg ahead, weight up for gas, wiper trip, backreaming needed 7770 10.3 26 27 6 RIH, drlg ahead, weight up for stability, add asphasol for coals 7900 10.5 27 29 5.8 TD well, wiper trip, extensive backreaming, POH for logs 7900 10.5 23 23 5.8 Log well on drlg pipe 7900 10.6 26 30 5.1 Cleanout run prior to compleiton. 7900 10.65 26 28 5.2 Run and cement excape string, disp to brine Mi SWAG Mu, Marathon Oil Company Well Name: KBU 41 -18X Location: Kenai, Alaska. Well Hole Size Depth PPG PV YP FL Comments KTU 24 -6H 17.5 625 9 13 35 15.6 Maintain 70 sec /qt funnel vis 1504 9.5 13 31 11.8 Condition mud prior to cementing 12.25 2716 9.35 12 24 10.1 Drlg 1200' 4111 9.2 10 21 9.4 DrIg 1400' trip ok 5060 9.3 -10 19 9.7 Drlg 900' 5300 9.2 11 13 6.2 Drlg 300', backream during short trip Lost 287 bbl mud when pumping OOH Short trip, losing mud downhole, Pumped Safecarb M/C pill Run & cement casing 8.5 5425 9.3 11 11 9.6 Drlg out 6332 9.25 14 25 8.6 DrIg 900' 6860 9.8 14 20 7.6 Trip out tight in many places, allow mud weight to increase 7286 10 13 23 7 Change bit, drill ahead 7742 10.7 16 26 6.8 Shut in well, increase mud weight, circ out gas 7960 11 17 25 7.8 Backream, hole tight, gas to surface, increase mud weight 8125 11.7 16 27 10.9 RIH, fill, circ out gas, increase mud weight 8287 12 15 19 8.3 Short trim, more gas, increase mud weight 8463 12 16 21 7.1 Drlg ahead, circ bottoms up, poh 8512 12 16 21 7.7 RIH, drlg ahead 8685 12 19 20 7.4 Drlg ahead 8840 12.2 20 20 7.1 Running coal, backream to 8026' pump sweep, POH Log hole, wiper trip, condition hole, run 7" csg Tight @ 8335', circ hole, RIH, land & cmt 7" 6 9289 9.55 8 25 8.6 Solids Free FloPro fluid 9752 9.55 8 31 6.9 Drlg ahead 9926 9.8 8 29 7.1 DrIg ahead, increase mud weight 10020 9.8 8 29 6.7 DrIg ahead, trip, new bit, drlg ahead 10630 9.8 9 36 5.2 Drlg ahead 10960 9.8 9 37 5.1 Drlg to T.D. 10960 9.6 1 0 0 Displace to KCL brine KTU 43 -6XRD2 6.25 7651 12.2 13 36 8.2 Work over fish 7735 12.1 14 35 10.6 Set Whipstock and mill window 8003 12.2 15 29 6.8 Drilling ahead 9210 12.2 16 27 3.4 Drilling ahead. No problems 9355 12.3 14 26 4.4 TD intermediate section 4.125 9470 8.8 12 20 5 Displaced 12.2 ppg to 8.8 ppg FloPro.Drill to 9470'. POOH for logs. 9340 8.8 12 21 5.2 Run 2 3/8 tubing and land at 9340'. Mi SWAC • • 0110 Marathon Oil Company 'FE Well Name: KBU 41 -18X 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 Stering A8 (3938' TVD) and Lower (6113' TVD) & Middle ((5408' TVD) Beluga Sands — Maintain proper bridging material concentration in the mud system while drilling the intermediate and production intervals. FLUID LOSS CONTROL — In the intermediate interval the API fluid Toss will be maintained in the 7 — 9 cc's range. In the production interval the API fluid will be maintained between 4- 6 cc's at all times. In addition to sufficient fluid loss agent additions, this may require adequate dilution of the mud system in order to keep reactive drill solids to a minimum . INTERMEDIATE INTERVAL - FloVis concentration of the initial mix should be no more than 1.25 PPB. Also, whenever possible, the makeup water for the mud should be heated with steam hoses to as high a temperature as possible. Finally, the pH of the make up water should be lowered to 5 +/- 6 with Citric Acid prior to adding FloVis. After all the FloVis is added, the pH should be increased to +/- 9.5 to yield the polymer. This will reduce the tendency for the polymer to form fish- eyes. As the drilling fluid heats up, FloVis concentration should be brought up to 2 PPB. DRILL SOLIDS — MBT — The MBT should be kept at less than 7.5 ppb in the intermediate and production intervals 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. With regard to Asphasol Supreme and Resinex, the premix tank should have hot water for mixing to help solubilize the products and reduce loss over fine shaker screens. Polymers and KCI should first be mixed in fresh water in that order and then blended into the active system over one or two circulations as needed. CORROSION — Conqor 404 additions should be made daily when drilling with FloPro fluid in order to maintain a Conqor 404 concentration of +/- 2000 PPM. 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 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. Barite must be water wet so add 4 — 6 bbls per hour when weighting up over 1 ppg. In the production interval, insure chloride concentration is maintained at 30,000 to minimize the need for barite additions. MISWAC • Antis Marathon Oil Company �.: IFE Well Name: KBU 41 -18X Location: Kenai, Alaska. Interval Summary — 16" hole Drilling Fluid System Gel /Gelex Spud Mud Key Products MI Gel / Gelex / Soda Ash / Caustic Soda / MI Bar / PolyPac Supreme UL / Sodium Meta Bisulfate Solids Control Shale Shakers / Desilter / Centrifuge Van Recommended shaker screens — 165 mesh Potential Problems Lost circulation, coal sloughing, drill solids build -up, hole cleaning. tit-0*at Properties Depth Mud Funnel Yield API Drill Interval Weight Viscosity Point Fluid Loss pH Solids (ft) (ppg) (sec. /qt) (1b./100ft (m1/30min) (%) 0- 1500' 8.6 -9.0 60- 100 25 -35 NC - 12 +/ -9.5 <7.5% > Treat drill water with Soda Ash to reduce hardness. > Build spud mud with 20 — 25 PPB M -I Gel to +/- 100 seconds /quart funnel viscosity. > Lower funnel viscosity to +/- 75 after gravel zone has been drilled. > Add Gelex as needed to maintain sufficient viscosity for hole cleaning. > Increase funnel viscosity if fill on connections begins to occur. > Reduce fluid loss with additions of Polypac Supreme UL prior to running surface casing. > Add Sodium Meta Bisulfate to maintain a DO of < 3 PPM. > Condition mud prior to cementing casing to reduce yield point and gel strengths. > Estimated volume usage for interval —1892 barrels. > Estimated haul off volume — 2984 barrels. Mi SWAIN eglW Marathon Oil Company IFE Well Name: KBU 41 -18X Location: Kenai, Alaska. Interval Summary — 12 -1/4 hole �t goon Drilling Fluid System Flo -Pro Fluid Key Products Flo -Vis / PolyPac Supreme UL / KC1 / SafeCarb 10, 40 / Mix II / MI WATE / Caustic Soda / Conqor 404 / Sodium Meta Bisulfate / KlaGard Solids Control Shale Shakers / Desilter / Centrifuge Van Recommended shaker screens — 200 mesh Potential Problems Lost circulation, coal sloughing, drill solids build -up, tight hole conditions Intervaii=tinng I'Iuid Properties Depth Mud Plastic LSRV API Drill Interval Weight Viscosity 1 min Fluid Loss MBT Solids (ft) (ppg) (cp.) (cps) (m1/30min) ( %) 1500 - 5473' 9.0 — 9.2 8 —12 40,000+ 7 - 9 < 7.5 +/- 5% > Use one rig pit to drill out surface casing. In other rig pits, build new Flo -Pro fluid using the enclosed fluid formula. Pre -heat makeup water with steam hoses as much as possible. > After drilling out surface casing, displace hole to Flo -Pro fluid prior to running leak off test > As mud heats up, increase FloVis concentration to 2 PPB as needed. > NOTE: Be prepared for whole mud losses in the Sterling A8 sands ( +/- 3972' MD). > If torque or sliding problems occur, add 1 — 3% Lubetex. Should not be an issue with nearly vertical hole but should be available on location if needed. > NOTE: This fluid will be used in the production interval. It is imperative to maintain proper fluid properties for that purpose. > Estimated volume usage for interval — 3229 barrels. > Estimated haul off volume — 3475 barrels. > Condition mud prior to running 9 -5/8" casing. NOTE: Follow BOSCO guidelines when adding biocide, oxygen scavenger and corrosion inhibitor. MiSWAG A. Marathon Oil Company ...... Well Name: KBU 41 -18X _ Location: Kenai, Alaska. Virtual Hydraulics SnapShot 12 1 /4" Hole ■VIJ svvAc 0 ©1995- 2006M4 L.L.C. 92ppg @580 GPM MD: 5473 ft Operator: Marathon IA ea Of M.I L L C. 1VD: 5388 ft Well Name: KBUSY VIRTUAL HYDRAULICS *Snapshot' B9Site: 1725 in �ae Kenai Pedtstia 4 Date: 2111/2008 Country: Alaska Depth Geometry Density PV(4P) Va Fide Clean PresslreDistribtt6m (4) MD/ND CsgODIID QI3'gal) YP, LSYP 61310 I5 69m116 Index (%) If 0n; 9.2 9.6 10.0 0 10 20 30 40 0 120 240 VG G F P Bit =342 Ann =4.9 DS =60.9 i t Drillirgfllid . � 1500 I L . , FIAPRO NT 1500 i,: ;:. 12 51 III MudWeiyf 9.2 Ids �.� I � Test Temp 60 °F System Data Raw Rate 590 gal/min s _ -. _. .. �:_ ( _ -__ Perieh'aBm Rate 100 lylr I i III ^ ` "' � �. I. WelightonBt 0 10001b I BitNo 0902 I II II III liii PreemreLasses €r 1� Modfied Power Law i I Drift String 563 psi _ I L t - Total System MWD 450 psi 4 ' __ - i -_ -- r Motor 350 1 1 Bit 316 psi t - BitOn 100 psi . Amiss 45 psi I Surface Equip 23 Psi a I U Tube 64 - .,< 1 I � — - - --- psi . . _..._. _ 1910 1 i ESD ECD 4Cnt j • COS hoe 9.23 9.38 9.61 925 9.41 9.64 5388 - ESG m - VBDH- Version 3.1 Fenn 35 EW File - KBU 41 -15X.M DB Mi SWACQ ..- t Hole Cleaning Index 0 Marathon Oi Compan == 1FE Well Name: KB 41 18X Location: Kena Alaska. Fluid Formula - 12 Interval MI - Intermediate Hole 1500 - 5473 I M -I L.L.C. AWL Input zeta o �r�/' % z �� Xrrur K / l� 'ter � r� la -# r �yx�ta` r �, / Y ^ / o r tea" �li6G�k Ffr ✓r aa'H,t' / a �,/ r i a x a ` x/r �/ta r rr s o r > a �r' x � s, 9. � i 9 ht ` ri �� r�� s / � � �: MI WATE Pre dr r Cor44 ✓r d r �" / waz /' ��m, l� // .x ,S,4, / Sg n / 7 0r .6'' 30000 IPI'lim'wvil'All''' /� Z i a ti' / w , a a r � / t, �� 4 ,, � owvi l ki � � � ` �"as S'' a u / ,xi / �d/ m � " xr' " F �i ` .Cr„`I ,c a / / "j ++r r'/j��. 6 � ei +r. 1 SS K / / � kyt�� , ,i.. �f „�4,! / /n�fh. Out put -1 bbl v,:>, - :, a r �z A, - mom/ �.:: /; ; a . s„a, /rr ,a- p r .,.n ue r' ^,/, .,.. < f'a ' 9 y tY 1' %d ti" „ ui ' a w; Yzr e- / Y// r,<.s Vi , k a .. .a 44 / ,& , J /, �, r, s . lam r P ✓h; r... l� ,rn. i ,. < . , ,�,� i z t r ✓ x :,,,. /ct../r`y� ,.�, Ott i s''S9, . ,�,. .,, ✓;� a ? /s Fa,, rx.,:.�: t :.g dry x '"r, / ' „s:,t a i s 67,n ' � a „ s '� :.. / / F : % 5 a� r'" ., t r'o tat + f / / F,;, 4 r s r .� / ;',.'a ✓ r -a 1 � t V t / y f io , g t y ,a r/f ri r ) > ra t �/ / .G a ✓.:r.nF .?.. 7 r�?� -: � � v . '� �.. 8v r �: , � r 3, 1k. >: d�, „� / ,F r,, ,5 ,� ,rr, -.,.r a; r ✓ � .,,.sti13 i �v.�;, � . r „�., ra . i��, /,r� ✓ r i §i d " " %y. p�� „, ✓ F.a;, e,„' /, � «' Y,.. /a rY / :.. /.tr � }}�� yy ¢y ,.,� ✓r 5 ✓rt . ,�;: ,.��% 4y't �` � 't�Y�(;, i! a �,,.: a':, �r� � s,��s�ar?�%i!�� <�� /YF��c�s�s ,, �uy,� �t;,.,�'.�; x ati�S.;k �*e,�,5�r,� �t.J�.� :,. a ,,, �e,S ��i,.;�r�x at,��„� ,9»",.~� s.�9r�.�MS„ kHti�,� ��"„�,� �,r�,✓ � �,Y;a� 1 Water 307.57 3 07.57 0.879 307.57 2 KCL 19.63 19.63 0.023 8.21 Inhibition 3 Soda Ash 0.50 0.50 0.001 0.20 Reduce Hardness 4 Caustic Soda 0.50 0.50 0.001 0.23 pH Control 5 POLYPAC UL 1.50 1.50 0.003 0.94 Fluid Loss Control 6 FLOVIS 1.50 1.50 0.003 1.00 Viscosity 7 Defoam -X 0.25 0.25 0.001 0.27 Inhibition 8 CONQOR 404 1.25 1.25 0.003 0.89 Bridging Agent 9 Sodium Metabisulfite 0.50 0.50 0.001 0.44 Corrosion 10 SafeCarb 10 4.00 4.00 0.004 1.54 Bridging Agent 11 Safe Carb 40 12.00 12.00 0.013 4.62 Bridging Agent 12 MI W ATE 13.79 13.79 3.28 Weighting 13 KLA - GARD 6.00 6.00 00.00169r .0 5.45 Inhibition If s loughing coals are a problem, premix black products prior to adding to mu system: 14 ASPHASO SU 2.00 2.00 0.005 1.67 Sloug 15 RESINEX 2.00 2.00 0. 1.25 Slo ughing hing coal Plan on adding 2.... 5 PPB M ix I I to th mu system pr to drilling into t Sterling A 8 sand ( +1- 3972' MD) M 16 MIX II 5.00 5.00 0. 1.9 LC 378 378 1 000 350 � 7,,T ;c ed Jui we z ;;' ', t' t 9.500 sti 1? age 2317 bbls r %yar 29600 MiSWAC • AIM IF E Marathon Oil Company Well Name: KBU 41 -18X Location: Kenai, Alaska. Interval Summary — 8 -1/2 hole 5473;;;,8797". Drilling Fluid System Flo -Pro Fluid Key Products Flo -Vis / Polypac Supreme UL / KCl/ K1aGard / MI WATE / Caustic Soda / Conqor 404 / Sodium Meta Bisulfate / Solids Control Shale Shakers / Desilter / Centrifuge Van Recommended shaker screens — 200 - 230 mesh Potential Problems Lost circulation, coal sloughing, drill solids build -up, tight hole conditions s 4 dl tilt:Oka Drilling luidF.Propert ies Depth Mud Plastic LSRV API Drill Interval Weight Viscosity 1 min Fluid Loss MBT Solids (ft) (ppg) (cp.) (cps) (ml/30min) ( %) 5473 — 7000' 9.4 +/- 10 —14 30,000+ 5 - 7 < 7.5 +/- 5% 7000 — 8797' 10.0 —12.0 14 —18 30,000+ 4 - 6 < 7.5 +/- 5% ➢ Pre -treat drilling fluid with Bicarb and/or citric acid prior to drilling cement. Aggressively treat out cement contamination as soon as feasible. Build additional dilution volume as needed. ➢ NOTE: Plan on increasing the mud weights to 10.0PPG to control pressures in the Tyonek formation ( +/- 7328' MD). However, mud weight increases should not be needed while drilling the lower Beluga formation. ➢ If running coals become a problem, treat with a 2 PPB of Asphasol Supreme and 2 PPB Resinex preferably premixed and heated in separate tank. ➢ Estimated additional volume for interval — 933 barrels. ➢ Estimated haul off volume — 2266 barrels. ➢ Condition mud prior to running 3 -1/2" casing. NOTE: Follow BOSCO guidelines when adding biocide, oxygen scavenger and corrosion inhibitor. Mi SWAB. 1 • AIIIIIk- Marathon Oil Company ....4„,„- Well Name: KBU 41 -18X ' Location: Kenai, Alaska. Virtual Hydraulics SnapShot 8 1/2" Hole . in ©1995 -2006 M -I L.L.0 12.2ppg @400 GPM MD:8797 ft Operator:Marathon 'Marko( M - ILLC TVD:8707 ft Well Name:KBU -BY VIRTUAL HYDRAULICSSnaP$ hot* BitSize2 /1 4/2008 in Location:Kenai Peninsula Date:2 CountryAlaska Deptt Geometry Angle Density Va Hole Clean Pressure Distribution (ft) MD/TVD Csg 00/11 (°) (Ib/gal) (ft/min) Index ( %) (5) (; 0 t 45 • 90 120 12.4 12.8 13.2 0 140 280 VG G F P Bit =21 Ann =14.8 DS =64.2 [4ttt ____ r G 11 Drilling Fluid FLOPRO NT , _ Mud Weight 12.2 Ib /gal /6 \ 1 Test Temp O °F System Data _ _ ' ! Fl Rate 400 gal/min r I ' i , . Weight on Bit 10 1000 lb 4 4 r Blt Nozzles 0.778 In' 5473 A k 9.828 j ` I __.I Pressure Losses 53ee aeel , t.._ ModVied Power Law ■ 1 II MWD 350 psi i M otor 250 psi B i t 298 ps I _ Bit OnlOff 100 psi f, i I - I Annulus 210 psi 1 Surface Equip 24 psi • 1 1 ®U-Tube Effect 26 psi. ..__. �.._ H Total System 2169 psi ' ! ESD ECD +Cut ' 8797 8.590 - - -� -i Csg Shoe 12.28 12.84 12.90 j 8707 � ) I III -4 12.29 12.75 12.81 i 99999' ESD 8- 8 $ - HCI VR9H -Version 3.1 535•F70(0041) ECD m - - Bed Ht % - ECD+CUt ®,. " +"F ,.:12..;:t. Fa' - 8BU414 " F7ofo Mi SWACCP L Hole Cleaning Index • • Marathon Oil Company IFE Well Name: KBU 41 -18X Location: Kenai, Alaska. Dilution Formula - 8 -1/2" Interval MI " A. w ■ Well: KBU 41 -18X production hole M -I L.L.C. Input ,„ ,� �d�� s >��;, /�% ��. KBU 41 -18X o oiw o r f� 'sH rr "/sq t"ae�r s✓,x.,� i` 5 /✓ r y �? 7 ur ysn M /'xr' 7 'rxr ✓� �f> N y�Yda �f�� ✓�,� r x 1 x ,'� y f rd��" x ` /{ate xy r F' .x f r�/? � r 7 /fir r �� O /� , NisG r ?a/�{ '� /; r �a'"'-yk 12.2 Pf$1�1 4 ^ 4 r/W ,F, r"h 7x"r / �' No xia /N.04014011011% X f rH /xr rr� � l � �j MI WATE {5"r ref d` lk0,I� y' SFr s �,�"�"rYr / / /r "" 4.1 'Wig rrs tl ,s tH�ryryvyrs'y.2r�f'x� /�c';'jtW r, �� ✓z �s �� /�� 5 � S��+C1 � r Frr�� r/ s ; %y��'�;�� 30000 !w rr y y `H s f r ,;s 'r'`r �r s,"xCi" .xf t F y f ryn r"5 xf# p q /y ✓, ®� %fir 1' t %% � y��/ fi 6 x , ri ✓� s �H N✓H'� �. y " "�r- s gHrs�a$;�"/,"✓��'sl�'r9yr � /s"" r`I'rs / re / `" /H'� �� irS ",�ryrx y � /H /, `� �t 4/Y fiyir ✓5 , "� " / NO xr yid ` , K�r�" o t fi '$ I sl 11.-41:;;04„ � $ � r y " ✓ " wi , xriz� No ' ✓ a i /3 ✓ r xx `xx y rSa� x z s F ,/ r r r"�' �� gYs Y�lys frfic7si f �x� � ��p'� �� i'" �� x xri�"rr" pi� �!p�ti 7 j / rrr x f x F /y�'6 / s� i�'.", ��` ��r �,✓/ s rrli✓ r�a� r�aY"'' rH'� ,✓r /.�1 / - s= ✓s' a%F rq1 � ✓M r` y ry5/� s itlry �/a „�'r3/ / � r wry rar �., H�' -t`�. ��xb; /rnsl� ,�Cl /y;�i,,i,,,6�f"t'�f,,r�,' Fib✓, e�/ r 'yr//�yur�"kHF.! "/e�'x",rrH„wlx ",. ksi/,"`�: a% Output -1 bbl "IrlggttrtilttlrrjliglltllttftttllnS'a'I'''vlivoIVt''zt r �q, . : �' °;,, '''�� " >yr='y s rr s /;:;A ,sr'� �- /�^ ��: r F,r,. t -sr ,,, hra ✓c,r.. .;;z Hy n Fj�,. .,�,, .. � ,r r�,�"'x�t ��,u «. r r F� Fir, �, a � ,, d �,. , " > lejfifoillartirtel,ter4'11 nps u � x" ,lrrr ,rte y r /� �� : , x zr'"..s" � m^ „�q`ras, ,rr'� rF { /,� /.. �, "si ,;�C? rF , /1�rr �'.z .>':��" '� z dH ✓ 5 y ✓ 5. //,r sy / 6 , G � �/ i1// ,�� .,✓ 3r .aH,/� �H� ,% ��rH.sr �„q,�J f�s„�Q a'`. C��/`x��,x ✓�r� -,.x, ,�� 3 xH'" ", �, #��Y'' � �a,H�" ✓.�� fh.°�.r"�`GHx. a�, ✓ � ;� r y a ..; ��Y�,�3H€wi sr u t F.: xss � 5 ,:..H� ,f -, � Y�r� ..,'� , f n�,.,��, ,: ,, >.:, f ., .„..,,� � ,. rq z .7 f�rxt r ..s, rs��. -,r � �,z, <,. a �!.,',. .;:.: y r:� -; �� / r /s, �� x�� ''f t�',,, °�'� "<;r l,r " �a ., �s r 8. � �" ,�,,� ,."^ & H H.f„ l x r. fi✓r / y 5a ✓ % t < ,.r F ,. s , n �J' r ¢✓F ,r.�xa� , vs s ;:?ur"✓" �,�s�,�.; "�r�y��r ��,�.rr"� x7� /u„� a �s��I�?l ��,�a�,x., �� ' ;`� f�s� � �, ®;� ar 3 e, r� /! � '� � rxr, b c x'"`, r,y .34.x. at s, x ,sn 9 , w z k ✓ � .,�: �,. s ;��s.'�s>�',�s'six��yfi+k9"�,^%... ,, i,�/��uxr'%#�& 1 Potassium Chloride 21.00 21.00 0.030 10.50 Inhibition 2 Soda Ash 0.50 0.50 0.001 0.20 Reduce Hardness 3 Caustic Soda 0.50 0.50 0.001 0.23 Ph control 4 POLYPAC UL 1.50 1.50 0.003 0.94 Fluid Loss Control 5 FLOVIS 1.50 1.50 0.003 1.00 Viscosity 6 Defoam -X 0.25 0.25 0.001 0.27 Defoamer 7 CONQOR 404 1.25 1.25 0.003 0.89 Corrosion Control 8 Sodium Metabisulfite 0.50 0.50 0.001 0.44 Oxygen Scavenger 9 SafeCarb 20 4.00 4.00 0.004 1.54 Bridging Agent 10 SafeCarb 40 12.00 12.00 0.013 4.62 Bridging Agent 11 KLA -GARD 6.00 6.00 0.016 5.45 Inhibition 12 MIX II 5.00 5.00 0.005 1.92 LCM 13 ASPHASOL SUPREME 2.00 2.00 0.005 1.67 Sloughing coal 14 RESINEX 2.00 2.00 0.004 1.25 Sloughing coal 16 MI WATE 164.33 164.33 0.112 39.13 Weighting Agent 18 Water 272.66 272.66 0.779 272.66 Base Fluid x s ✓ � ./✓/'v< � r rH ,N r r r ,�%., � is r rq r r r� �r � b CITO � " x / 512 4 512.4 ; tt641 1 1 933 bbls 4V ')' ®rW .!:S Ar x i a t gl` 12.200 n d ,,, 1- 1 rV 29600 Mi SWA � ,.�,. • • _ —. Marathon Oil Company Well Name: KBU 41 -I8X Location: Kenai, Alaska. Interval Summary -- Completion Procedures Corrosion Control Additive in Casing x Tubing Annulus Well KBU 41 -18X 1 c` ry a e x3 Volumes: Tubing Volume 3 -1/2" Tubing 76.53 barrels k ' y Annular Volume Casing x Tubing 335.67 barrels Tbg 3.50 x 2.992 x 8797 ft Open Hole x Tbg 120.23 barrels Total Annular Volume 455.90 1 Tubing Volume 76.53 Total Hole Volume 532.43 9.625 x 8.681 @ 5473 ft MD t — 8.500 x 3.50 @ 8797 ft MD Treatment Procedures. 1. After the 3 -1/2" tubing is run and the drilling fluid is circulated and conditioned for the cement job, circulate an additional 455 barrels of drilling fluid. 2. Add 1 drum of Conqor 303A and 1 sack of Sodium Meta Bisulfate for each 100 barrels of drilling fluid pumped (5 drums & 5 sacks total) 3. After the 455 barrels of drilling fluid with treatment have been pumped downhole, begin the cement job. 4. This procedure will place corrosion control in the 3 -1/2" x 9 -5/8" annulus. Mi • 0 Marathon Oil Company Well Name: KBU 41 -18X 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. Mi SWAG • • Marathon Oil Company IFE Well Name: KBU 41 -18X Location: Kenai, Alaska. 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. Mi SWAG- • • ompany -18X Marathon Oil C NW ..,,,, IFE Well Name: KBU 4Al1 Location: Kena aska. Product He and Safety Reference HMIS HAZARD RATINGS Product Function � u > I i r P PE M - BAR Weighting Agent E � M -I GEL Viscosity control E GELEX Bentonite Extender k E FLOVIS Viscosifier E DUAL - FLO Modified Starch E POLYPAC Fluid Loss Reducer E HEC Loss Circulation Materia weighting l agent E Safe - Garb Nut Plug 10,40,250 Bridging E Loss Circulation Material i E M - Seal F, M, C Loss circulation and Material � E mix!! F,M,C Loss circulation Material E DESCO CF Dispersant E SALT (Solar) Densifier E POTASSIUM CHLORIDE Shale Inhibitor E CAUSTIC SODA A lkalinity control X BORAX Inorganic Borate E SAPP S Pyrophosphate E SODA ASH Alkalinity control E SODIUM BICARBONATE Alkalinity control E CITRIC ACID pH Adjuster E BIOBAN BP -PLUS Biocide J GREEN CIDE 25G - Biocide J DEFOAM X - Defoamer J G -SEAL Size graphite LCM E SteelLube Lubricant J LUBE TEX Lubricant J D -D CWT Detergent J Concor 404 Corrosion Inhibitor J SAFEKLEEN Drilling fluid additive J Asphasol Supreme Shale Inhibitor Sodium Meta Bisulfate Oxygen Scavenger J Product Health and Safety Reference Mi SWAG • • Marathon Oil Company IFE Well Name: KBU 41 -18X Location: Kenai, Alaska. 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 MiSWA • • Aft Marathon Oil Company _._ IFE Well Name: KBU 41 -18X Location: Kenai, Alaska. Contacts Contact Title e-mail Work Cellular Pete Berga Drilling pkberga @marathonoil.com 907 565 -3032 907 231 -0663 Marathon Superintendent Will Tank Drilling Engineer wjtank @marathonoil.com 713 296 -3273 713 203 -8398 Marathon Jim Dwyer Project Engineer jdwyer @miswaco.com 907 646 -3233 907 317 -4556 MI SWACO Bob Myles Warehouse Manager rmyles @miswaco.com 907 776 -8722 907 252 -4218 MI SWACO Oliver Amend Field Engineer 907 283 -0895 907 398 -9474 MI SWACO (home) Jim Brown Field Engineer Miswacogdrl @hotmail.com 907 398 -8500 MI SWACO John Nicholson / Dan Drilling Foremen alaska_drilling @marathonoil 907 283 -1312 Byrd .com Marathon Responsibilities ➢ MI Project Engineer and will coordinate daily between the Marathon office, rig, warehouse, and the M -I field engineers. ➢ Well progress will be monitored to look for any changes, which will improve the efficiency of the operation or avert trouble. ➢ Field Engineers will monitor and supervise product inventory to include re- palletizing any products for shipment to other locations at the end of the well. ➢ Field Engineers will communicate with office personnel (Marathon & MI SWACO) for approval of any changes in the mud program (including introduction of new products). ➢ Field Engineers will produce a recap at the end of the well based on daily activities. Recap should include any lessons learned that may be used to provide better service on future wells. Lessons learned can include changes in procedures, product additions, equipment usage, and /or utilization of any third party service. MI SWA TRANSMITTAL LETTER CHECKLIST WELL NAME ,BL/ 4'/- //'X PTD# J704.7 6 ✓ Development Service Exploratory Stratigraphic Test Non- Conventional Well FIELD: !e�/J4.q/ POOL: .�E"'LG1G� G/A' / )/0/146e' Circle Appropriate Letter / Paragraphs to be Included in Transmittal Letter CHECK ADD -ONS WHAT (OPTIONS) TEXT FOR APPROVAL LETTER APPLIES MULTI LATERAL The permit is for a new wellbore segment of existing well (If last two digits in Permit No. , API No. 50- - - API number are between 60 -69) Production should continue to be reported as a function of the original API number stated above. PILOT HOLE In accordance with 20 AAC 25.005(0, all records, data and logs acquired for the pilot hole must be clearly differentiated in both well name ( PH) and API number (50- - - ) from records, data and logs acquired for well SPACING The permit is approved subject to full compliance with 20 AAC EXCEPTION 25.055. Approval to perforate and produce / inject is contingent upon issuance of a conservation order approving a spacing exception. assumes the liability of any protest to the spacing exception that may occur. DRY DITCH All dry ditch sample sets submitted to the Commission must be in SAMPLE no greater than 30' sample intervals from below the permafrost or from where samples are first caught and 10' sample intervals through target zones. Non - Conventional Please note the following special condition of this permit: Well production or production testing of coal bed methane is not allowed for (name of well) until after (Company Name) has designed and implemented a water well testing program to provide baseline data on water quality and quantity. (Company Name) must contact the Commission to obtain advance approval of such wa we ll testing program. Rev: 1/11/2008 WELL PERMIT CHECKLIST Field & Pool KENAI, UP TYONEK BELUGA GAS - 448571 Well Name: KENAI UNIT 41 -18X Program DEV Well bore seg ❑ PTD#: 2080260 Company MARATHON OIL CO Initial Class/Type DEV / PEND GeoArea 820 Unit 51120____________ On /Off Shore On Annular Disposal ❑ Administration 11 Permit_ fee attached - NA - 2 Lease number appropriate _ - Yes - 3 Unique well name and number Yes '4 Well located in a- defined pool _ Yes Beluga / Upper Tyonok - 5 Wett located proper distance from drilling unitboundary Yes - 6 Weil located proper distance from other welts - Yes _ ,7 Sufficientacreage_avaliable in_driding unit_ - Yes _ - - 8 If_ deviated, is wellbore plat_inciuded _ - Yes - - 9 Operator only affected party - _ Yes 10 Operator has_approprlate bond in force - Yes Blanket Bond #_5194234 11 Permit can be issued without conservation order - Yes - Appr Date 12 Permit can be issued without administrative_ approval Yes ACS 2/21/2008 13 Can permit be approved before 15- day_wait _ Yes 1 ill 4 -Welt located within area and_strata authorized by_ Injection Order # (put 10# in comments)_ (For NA 15 All welis_within 1 /4_mite area_of review identified (For service welt only)- NA 16 Pre - produced injector, duration -of preproduction less than 3 months (For service welt only) _ _ NA - 17 _Nonconven, gas _conforms to AS31,05.030(1.1.A),(j.2.A -D) NA Engineering 18 Conductor string - provided Yes _ 19 Surface casing protects all_known t1SOWs Yes Aquifers > 1300' tvd exempted 40_CFR 147,102 (b)(1)(iii). _ 20 CMT vol adequate to circulate on_conductor & surf csg _ - - Yes - - - 21 CMT-v-ol adequate_ to tie -in long string tosurf csg - No 3 -1/2" Long string will be cemented into intermediate casing. _ 22 CMT_will coverall known_ productive horizons - - Yes _ _ - 23 Casing designs adequate for C, T, B & permafrost _ Yes 24 Adequate tartkageor reserve pit Yes Rig equipped with steel pits, No reserve pd planned. All waste_to approved disposal well(s). 25 _Its_ re -drill has a1_0403 for abandonment been approved - _ NA 26 Adequate wellbore seperation_proposed _ Yes - 27 if required, does it meet regulations _ Yes Proximity analysis performed. Spider plot provided, Appr Date 28 Drilling fluid program schematic_& equip list adequate - Yes Maximum expected formation pressure 12.0 EMW._ Planned MW 12.2 ppg. TEM 2/25/2008 29 BOPEs,_do theymeet regulation Yes Marathon requests to employ_only_1_pipe ram due to height restrictions and clearance needed to run_completiont _ f3 30 BOPE_press rating appropriate; test to_(put psig in comments) Yes MASP calculated at 3171 p ryl/d 7 si w/ 30% r0 %o wer _ MASP W/ .1 _psf/-ft 4567 psi. - 3500 spi BOP test proposed._ • I,,g 31 Choke_manifold complies w /API RP -53 (May $4) - Yes _ C��C�.> e v r !�' 32 Work will occur without operation shutdown _ - Yes - Completion to be _performed w/o rig pe'usuai practice. - 33 is presence of H2S gas probable No H2S is not known in CI_ gas weds. Rig has sensors and ala rms. 34 _Mechanical_condition of wells within AOR verified (For service well only) NA - - - Geology 35 Permit can be issued w/o hydrogen_suifide measures - Yes 36 Data_ presented on potential overpressure zones - NA - Appr Date 37 Seismic_analysis of shallow gas zones _ - NA _ - - ACS 2/21/2008 38 Seabed condition survey_(if off - shore) _ NA - 39 Contact name /phone for weekly_progress reports_ [exploratory only] _ Yes Will Tank - 713- 296 -3273 Geologic Engineering Public Commissioner: Date: Commissioner: Date CoII .ner Date (PA - z zS -� 416:42,„ z, 2�.._ 0 c ar Well History File APPENDIX Information of detailed nature that is not particularly germane to the Well Permitting Process • but is part of the history file. To improve the readability of the Well History file and to simplify finding information, information of this nature is accumulated at the end of the file under APPENDIX. No special effort has been made to chronologically • organize this category of information. r • Ali MARATIION KBU 41 -18X SEC 18 T14 R11W SM March 14, 2008 — March 27, 2008 i • '* � L y t. r t,.4ts a l e + 1, i, i r ( ' , • + ! M — ,— rte—" l Craig Silva: Senior Logging Geologist Ralph Winkelman: Senior Logging Geologist • I I E- - - i EPOCH (M\ MARATHON OIL COMPANY KBU 41 -18X • TABLE OF CONTENTS 1 MUDLOGGING EQUIPMENT AND CREW 2 1.1. EQUIPMENT SUMMARY 2 1.2. PERSONNEL 2 2. GENERAL WELL DETAILS 3 2.1. OBJECTIVES 3 2.2. WELL RESUME 3 2.3. HOLE DATA 3 3. GEOLOGICAL DATA 4 3.1. LITHOLOGY REVIEW 4 3.2. SAMPLING PROGRAM AND DISTRIBUTION 10 4. DRILLING DATA 11 4.1. DAILY ACTIVITY SUMMARY 11 4.2. SURVEY RECORD 18 4.3. MUD RECORD 23 4.4. BIT RECORD 25 • 4.5. DRILLING PROGRESS CHART 26 DAILY REPORTS APPENDIX I FORMATION LOGS APPENDIX II DRILLING DYNAMICS LOGS APPENDIX III • €1 EPOCH M MARATHON OIL COMPANY KBU 41 -18X • 1 MUDLOGGING EQUIPMENT AND CREW 1.1. EQUIPMENT SUMMARY Parameter Equipment Type And Position Total Comments Downtime Low gas readings are a persistent concern due to the immediate pre- shearing Standard Air Drive Trap Mounted In of return mud, that falls 14" Ditch Gas Possum Belly; FID Total Hydrocarbon 0 straight down through an air gap as it exits the flowline Analyzer And Chromatograph and impacts the fluid of a tiny possum belly in a wide splash, before reaching the gas trap. Rate of Penetration (ROP) Primary Drawworks Shaft Encoder On 0 Drum Shaft Pump stroke counters Externally Mounted Magnetic Proximity 0 Sensor Hookload / Weight on bit (WOB) Hydraulic Pressure Cell 0 Drill string torque Hydraulic Pressure Cell 0 Top drive rotary (RPM) Externally Mounted Magnetic Proximity 0 Sensor Standpipe Pressure Hydraulic Pressure Cell 0 Mud flow in / out (MFI / MFO) MFI Derived From SPM / MFO From 0 Flow Paddle • Pit volumes Ball and probe sensor 0 Driller's work station Explosion Proof Touch Screen 0 Casing Pressure Hydraulic Pressure Cell 0 Company man's work station HP COMPAQ 0 Mud Engineer's work station HP COMPAQ 0 Living quarter's work station HP COMPAQ 0 Pit's work station Explosion Proof Touch Screen 0 1.2. PERSONNEL Unit Number: ML006 KBU 41 -18X Years Days Sample Catchers/ Days Days Mudloggers Experience at Trainees at Technician at well well well Craig Silva 30 22 Christina Medlyn 7 Steve Forrest 2 Ralph Winkelman 19 19 Rick Frederick 4 • El EPOCH 2 i MARATHON OIL COMPANY KBU 41 -18X 2. GENERAL WELL DETAILS S 2.1. OBJECTIVES The objective of KBU 41 -18X is to successfully drill and log a Multiple Zone Development Gas well in the Kenai Gas Field, with a minimum of hole problems or other concerns. An EXCAPE completion will be performed. 2.2. WELL RESUME Operator: MARATHON OIL COMPANY Well Name: KBU 41 -18X Field: Kenai Gas Field County: Kenai Peninsula Borough State: Alaska Company Representatives: Dan Byrd Rowland Lawson John Nicholson Mitch Burns Location: 444' FNL, 539' FEL, Sec 18 T4N R11W SM, X= 275,272.008, Y= 2,356,290.224 Classification: Multiple Zone Development Gas API #: 50 — 133 — 20575 — 00 — 00 Permit #: 208 - 0260 Activity Code: (WBS #s) DD.07.16237.CAP.DRL Rig Name / Type: Glacier #1 / Land / Double Elevation: Ground, RKB 66.5'GL, 88.3' RT Primary Targets: / Target Depths: Middle Beluga (5494'md, 5408' tvd), Lower Beluga (6203' md, 6113'tvd) liti! Targets: / Target Depths Tyonek (7328' — 8707' md, 7238' — 8617' tvd) T u l d Date: March 14, 2008 Total Depth 8740' Total Depth Formation: Tyonek Total Depth Date: March 27, 2008 MWD Company: / Tools Run: Baker Hughes Inteq / Directional MWD Directional Drilling: Baker Hughes Inteq Drilling Fluids Company: M -I Drilling Fluids Logging Companies: Weatherford Wireline Services: Quad -Combo and MFT on wireline. 2.3. HOLE DATA KBU 41 -18X Hole Maximum Depth T D Mud t Deviation W Shoe Depth _ F.I.T. Weight Casing Section MD SSTVD Formation (AN) MD SSTVD EMW 16" 1500' 1411.57' Sterling 9.3 0.62 13 %" 1485' 1396.57' 13.0 12'/4" 5475' 5302.59' Beluga 9.3 10.32 9 %" 5458' 5285.91' 14.4 8 ' /2" 8740' 8563.08' Tyonek 11.7 1.26 3 ' /2" 8657.39 8480.49' EXCAPE y Completion El EPOCH 3 MARATHON OIL COMPANY KBU 41 -18X 3. GEOLOGICAL DATA • 3.1. LITHOLOGY REVIEW Tuffaceous Claystone/Tuffaceous Siltstone (5480'- 5600') = light bluish gray to medium light gray with Tight brown secondary hues; very soft; shapeless, globular cuttings; tacky to curdy; silty to clayey texture; dull to slightly waxy luster; poor cohesiveness; poor to fair adhesiveness; hydrophilic; moderate to very soluble; slight to moderately expansive when hydrated; non calcareous; trace dark brown to black, microthin carbonaceous laminations and inclusions; trace to common Safe Carb (crushed marble) mud additive contamination,(5 % -20 %). Sand/ Conglomerate ( 5500' - 5700') = light to light medium gray with a moderate salt and pepper appearance, individual liths dominantly clear to translucent quartz and volcanic glass, Tight to medium gray, trace dark gray to black, dark green to greenish gray, white and rust Iiths; very fine upper to rare pebble and pebble fragments, dominantly fine upper to medium upper; angular to subangular; fair sorting in fine to medium, poorly sorted in coarse; disaggregated; trace to common, mottled gray, ashy tuff; fragile; non calcareous; common light to medium gray clay, commonly acts as a supporting matrix for loose sand; trace dark brown to black carbonaceous shale. Tuffaceous Claystone/ Tuffaceous Siltstone (5660' - 5800') = light gray to light medium gray with light bluish and greenish gray secondary hues common, trace Tight to medium brown secondary hues; very soft to slightly firm; shapeless to slightly wedge shaped cuttings; silty to clayey texture; dull to earthy luster; hydrophilic; moderate to very soluble; slight to moderately expansive; poor to fair cohesiveness and adhesiveness; non to slightly calcareous; trace very dark brown to black, microthin carbonaceous laminations and inclusions; trace black, carbonaceous material /shale; trace medium to dark gray, ashy tuff. • Coal/ Carbonaceous Shale/ Material (5760- 5860') = black with dark brown secondary hues; firm to hard; brittle at times; blocky to platy; planar fracture dominant with trace birdeye and conchoidal; slightly gritty to smooth texture; earthy to resinous luster; present as very thin beds and occasional loose inclusions in dominantly claystone /siltstone formation; no outgassing detected. Sand/ Sandstone ( 5800' - 5920') = light gray to Tight greenish gray, individual grains dominantly clear to translucent quartz and volcanic glass, Tight to medium gray, dark gray to black, trace greenish gray; very fine upper to very coarse lower, dominantly fine grain; angular to subangular; fair to good sorting in fine range, poorly sorted in medium upper and coarse; trace light greenish gray sandstone with a minor salt and pepper appearance; very fine grain; very firm to hard; slightly friable; very calcareous cement; trace medium to dark gray to mottled gray ashy tuff; very calcareous. Tuffaceous Claystone/ Tuffaceous Siltstone (5880' - 6000') = light to medium light gray with trace light brown secondary hues; very soft and sticky; shapeless, globular cuttings dominant with trace wedge shaped firmer pieces; silty to clayey texture; dull, earthy luster; very soluble; moderately expansive when hydrated; poor to fair cohesiveness; fair to good adhesiveness; non calcareous; trace black, microthin carbonaceous laminations and inclusions. Li EPOCH 4 M MARATHON OIL COMPANY KBU 41 -18X • Sand/ Sandstone/ Conglomeratic Sand/ Conglomerate (5920'- 6070') = medium gray overall, but varying lightness values from medium light gray to dark gray; mixed light and dark gray when becoming conglomeratic; faint light olive gray and light brownish gray secondary hues; very fine upper to granule range; major mode of fine upper to coarse lower, and minor mode of very coarse lower to granule; apparent fining upward from coarse basal zone; dominant angular to subangular, but significant fraction of very coarse and larger grains often subspherical to spherical and rounded; dominantly disaggregated, but locally common consolidated sandstone with modes of support ranging from soft soluble matrix tuffaceous clay to intergrain crystalline calcite; most sandstone has complex mixed support; sublithic arenite to compositional graywacke; estimate 50 -75% quartz and volcanic glass, trace feldspar, 5 -15% various cryptosilica (chalcedony, chert) and other undifferentiated highly siliceous grains and rock particles, 15 -40% Iithics and mafic minerals (dominated by medium to dark gray medium grade meta phyllite and rock fragments, and minor light green to greenish gray to variegated green low grade meta greenstone rock fragments). Sand/ Sandstone/ Tuffaceous Sandstone/ Conglomeratic Sand (6070'- 6300') = note change in sand characteristics after 6070' (and also change subtle differences in other lithologies; note that subtle overall lithology difference suggests possible transition zone; sands have slightly more homogenous overall appearance; dominant size mode is fine upper (and close to medium lower boundary) to medium upper; sorting is generally improved; although fining upward is still discernible, the thicker sands display less variation in overall grain characteristics and appear more massive, with stacking of microthin beds and interbeds less apparent in cuttings; note significant overall increase in volcanic ash as supporting material; note at 6080' that thin interbeds of fairly "fresh- looking" air fall ash were abundant; sands after 6080' often had tiny (very coarse sand size) clasts of soft encapsulated volcanic ash; note that with the greater abundance of ash that more pieces of devitrified smectite - bentonite group clayey (and sometimes waxy- lustered) ash are distributed throughout the cuttings; tuffaceous sandstone becomes a major constituent after 6100'; dominant medium light gray, but significant fraction of light and only trace sand darker than medium gray; angular to subrounded, discoidal to subspherical; most sandstone is clay or • ash matrix supported, but significant fraction continues to be complex mix of clay -ash and calcite - silica mineralization mixed with silt particles and volcanic glass microshards; continued sublithic arenite to lithic arenite; local basal shifts to compositional graywacke are rare; overall very slight shift closer to sublithic arenite; estimate 60 -80% quartz and volcanic glass, trace feldspar, 5 -15% various cryptosilica (chalcedony, chert) and other undifferentiated highly siliceous grains and rock particles, 10 -25% Iithics and mafic minerals (dominated by medium gray, medium grade meta phyllite rock fragments, and minor (but increasing) light green to greenish gray to variegated green low grade meta greenstone rock fragments. Tuffaceous Claystone/ Tuffaceous Siltstone/ Volcanic Ash/ Tuffaceous Shale (6000'- 6700') = all lithologies that are derived from volcanic ash, closely associated, that share many characteristics, and generally appear to be closely gradational fractions of an overall clayey - silty -sandy tuffaceous mudstone, but display many localized variations in texture and composition; tuffaceous clay is pervasive supporting matrix of most sandstones; tuffaceous claystone and siltstone are dominant overall, and dominantly medium gray to light grayish brown; note that there are many subtle variations of gray and brown primary colors and secondary hues; designated volcanic ash and tuffaceous claystone are very closely gradational to each other, (and often appear to be the same lithology), but volcanic ash on the mudlog appears to be less reworked, with little transport from its original air fall deposition, and consistently has a "fresher" appearance with more easily discerned shards, and textures that tend to have some remnants of its original vitriclastic texture before redeposition and mixing with other sediment; trace tuffaceous shales are often slightly brittle and some grade to a smoother looking more argillaceous clayey mudrock; many tuffaceous mudrocks have thin carbonaceous microlaminations and particles, and many sections of tuffaceous mudrocks have abundant carbonaceous material, are much browner looking, and can be described as carbonaceous tuffaceous claystone - siltstone; abundant tuffaceous claystones are hydrophilic, soft and soluble. • Li EPOCH 5 tD MARATHON OIL COMPANY KBU 41 -18X • Sand/ Sandstone ( 6660' - 6780') = light gray to light greenish gray, individual grains dominantly clear to translucent quartz and volcanic glass, Tight to medium gray, dark gray to black, trace greenish gray; very fine lower to very coarse lower, dominantly fine grain; angular to subangular; fair to good sorting in fine range, poorly sorted in medium upper and coarse; trace light greenish gray sandstone with a minor salt and pepper appearance; very fine grain; very firm to hard slightly friable; very calcareous cement; trace medium to dark gray to mottled gray ashy tuff; very calcareous; trace very dark brown to black carbonaceous material/ shale/ coal; present as very thin beds in dominantly claystone formation; trace to 20% Safe Carb mud additive contamination. Tuffaceous Claystone/ Tuffaceous Siltstone (6760' - 6900') = light gray to medium light gray with very light brown secondary hues; very soft and very sticky; shapeless, globular, amorphous cuttings; tacky to curdy; silty to clayey texture; dull to greasy luster; hydrophilic; very soluble; very expansive when hydrated; poor cohesiveness; good to very good adhesiveness; rare firmer pieces have very dark brown to black, microthin carbonaceous laminations and inclusions; trace thin coal beds; continued Safe Carb mud additive contamination. Sand/ Sandstone ( 6840' - 6920') = light gray overall with a moderate salt and pepper appearance, individual grains dominantly clear to translucent quartz and volcanic glass, light to medium to dark gray, black, medium to dark greenish gray and white liths; very fine upper to very rare coarse upper, dominantly fine grain; angular to subangular; moderate to moderately well sorted; disaggregated with light gray clay supporting matrix common; trace light gray sandstone; very firm to hard; friable; very calcareous cement; very fine grain lower; commonly grading to a sandy siltstone/ silty sandstone; trace black carbonaceous material/ coal. Tuffaceous Claystone/ Tuffaceous Siltstone (6900' - 7040') = light to medium light gray with trace light brown secondary hues; very soft and sticky; shapeless, globular cuttings dominant with trace wedge • shaped firmer pieces; silty to clayey texture; dull, earthy luster; very soluble; moderately expansive when hydrated; poor to fair cohesiveness; fair to good adhesiveness; non calcareous; trace black, microthin carbonaceous laminations and inclusions; siltstone commonly grading to a very fine, silty sandstone/ sandy siltstone; light gray; fragile; non calcareous; trace thin coal beds. Coal/ Carbonaceous Shale (7020'- 7120') = black with dark brown secondary hues; hard and brittle to very firm; blocky to platy; planar fracture dominant with trace conchoidal and birdeye; flaky to platy; silty and slightly gritty to smooth texture; earthy to resinous luster subbituminuos; trace outgassing bubbles from larger, well developed pieces. Sand (7060' - 7200') = very light gray overall, individual grains dominantly clear to translucent quartz and volcanic glass, light to medium to dark gray, black, medium to dark greenish gray and white liths; very fine upper to very rare coarse upper, dominantly fine grain; angular to subangular; moderate to moderately well sorted; disaggregated with light gray clay supporting matrix common; non calcareous; trace thin coal beds. Tuffaceous Claystone/ Tuffaceous Siltstone (7120' - 7330') = light gray to light medium gray with Tight brown secondary hues; very soft to slightly firm; shapeless, irregular cuttings to rounded wedge shaped and pdc bit action scooped appearance; silty to clayey to slightly gritty from very fine suspended sands; dull to slightly waxy luster; hydrophilic, moderate to very soluble; moderate to very expansive when hydrated; fair to good cohesiveness and adhesiveness; non calcareous; trace dark brown to black, microthin carbonaceous laminations and inclusions; trace Tight gray to mottled gray ashy tuff; fragile to pulverulent and very calcareous. Coal ( 7230' - 7300') = black with very dark brown secondary hues; very firm to hard; brittle at times; blocky to platy; planar fracture dominant with trace conchoidal and birdeye present; silty to matte to smooth texture; earthy to resinous luster; sub bituminous in nature; occasionally grading to a less developed carbonaceous shale/ material; trace to common visible outgassing bubbles. Ell EPOCH 6 MARATHON OIL COMPANY KBU 41 -18X Tuffaceous Claystone/ Tuffaceous Siltstone (7330'- 7420') = continued same appearance as tuffaceous claystones and siltstones described immediately above, no significant change in overall characteristics, but note that there is an easily discernible change in overall tenacity; note that the fraction of cuttings pieces that display pdc bit metamorphism increases from spotty to abundant; also note that much of the tuffaceous clay becomes "patchier" and has a more mottled in appearance. Tuffaceous Sandstone/ Sand/ Sandstone (7330' - 8000') = note significant change in sand characteristics after 7360'; sands are prominently supported by volcanic ash, rather than tuffaceous clay; samples are much whiter and lighter gray colored as wet cuttings and especially lighter after drying; note that a significant fraction of the sandstone matrix often has slightly more "solid- looking" crystalline appearance, to suggest that some of the original intergrain material may have altered to other clays, especially kaolinite and /or montmorillonite with the prominent white color; locally the matrix volume is very abundant and the tuffaceous sandstone is closely gradational to a very sandy claystone or "ash- stone "; note that abundance of the matrix tends to mask the characteristics of the sand, but when the matrix is jetted away the remaining sand displays many differences from the beluga sands above, and has a much more homogeneous overall appearance; white to very Tight gray to light medium gray; often has very faint light olive gray secondary hue, and occasionally has very faint pale yellowish gray hue; some halo -like zones around larger sand grains have a very faint grayish orange pink secondary coloration; very fine lower to coarse upper; mostly moderately well sorted in fine lower to medium upper range; very large fraction is close to fine upper- medium lower boundary; note that very fraction consists largely of glass shards that have been winnowed from volcanic ash (and may be from the some of the jetted out matrix of the current sands); dominant angular to subangular and discoidal to subdiscoidal, but consistent minor to trace fraction of subspherical and subrounded grains. Tuffaceous Sandstone/ Sand/ Sandstone (7330'- 8000') = appears to be 4 major types of sandstone • intergrain supporting material; most abundant type is the volcanic ash and soft alteration clays after volcanic ash; next in abundance are soft sandstones with mixed volcanic ash - tuffaceous clay matrix that are hydrophilic, soluble in part, easily hydrated, easily disintegrated by action and jetting and present as both the soft lumps of clayey sandstone and as the common to pervasive disaggregated sand; minor to locally abundant third type that has complex matrix and grain support with intergrain combinations of clay - ash, air fall ash, clay -silt, devitrified ash, clay minerals after alteration, calcite and silica cements and redeposited glass microshards; fourth type of sandstone is a much "cleaner- looking" sandstone that is largely grain supported by major calcite and minor silica cementation; note trace sandstone that is almost exclusively supported by devitrified ash; note that significant fractions of the first type of lighter colored ashy sandstones can locally be very calcareous; trace very fine tuffaceous sandstone that grades to very sandy tuffaceous siltstone. El EPOCH 7 4 D MARATHON OIL COMPANY KBU 41 -18X • Tuffaceous Sandstone/ Sand /Sandstone (7330'- 8000') = note that even though average composition appears very close to the sublithic arenite - lithic arenite cutoff, the total range of composition varies from lithic quartz arenite in the uppermost zones of the more massive sand sections to very localized compositional graywacke in the basal zones; note that "cleanest- looking" grain supported calcite cemented sandstones are mostly lithic arenite to marginal compositional graywacke ( >30% lithics); the ash -rich matrix supported sandstones are more commonly sublithic arenite; estimate 50 -85% quartz and grains of volcanic glass, trace feldspar, trace -20% various forms of cryptosilica (chert, chalcedony) and other undifferentiated silica rock, 10 -40% lithics and mafic minerals; estimate 70 -80% of quartz is colorless to very pale gray, very pale brown or other very pale colors and translucent; 20 -30% of quartz and nearly 100% of volcanic glass is colorless and transparent; mafic minerals are mostly undifferentiated black, grayish black, greens and many other colors with less distribution, but augite, micas (biotite- muscovite- chlorite - possible phlogopite), magnetite - limonite group minerals, epidote, zircons and citrine are discernible; lithics fraction is slightly dominated by medium dark gray to grayish black to black argillite- phyllite group medium grade metamorphic rock fragments; (note that the very high percentage of medium gray sub - schistose phyllite rock fragments present in the beluga is now greatly reduced in the tyonek); less abundant overall than the argillites, but occasionally locally dominant are pale green to grayish green to variegated green low grade metamorphic greenstone rock fragments; when greenstones are abundant, flakes and micro -books of chlorite are usually increased; all other lithics generally represent about 10% of total and are very diverse; note locally common sedimentary rock fragments, especially clastic coal fragments and lithic calcareous tuff fragments; note that the grain textures of larger sandstone fragments display a slight parallel orientation and longer grains appear to be aligned along the same axis. Coal (8040' - 8200') = black with dark brown secondary hues; very firm to hard; brittle at times; blocky to platy to irregular shaped cuttings, occasional conchoidal and birdeye fracture, planar fracture dominant; smooth to matte texture; earthy to resinous luster; trace resinite along bedding planes; common to abundant, vigorous outgassing bubbles. • Tuffaceous Claystone/ Tuffaceous Siltstone ( 8160' - 8280') = light bluish gray to light yellowish gray to light gray with light to medium brown secondary hues; soft to slightly firm; rounded to irregular shaped cuttings; silty to clayey to gritty texture from very fine suspended sands; dull to sparkly luster from strong ash content; moderately soluble; slight to moderately expansive when hydrated; fair cohesiveness; fair to good adhesiveness; non calcareous; trace black, microthin carbonaceous laminations and inclusions; light brown to light brownish gray siltstone commonly grades to silty sandstone/ sandy siltstone; fragile; non calcareous. Sand/ Conglomeratic Sand/ Tuffaceous Sandstone ( 8240' - 8380') = light gray overall with abundant multicolored liths dominantly clear to translucent quartz and volcanic glass, frosted white, trace dark gray, black, pale rose, pale green to dark green to greenish gray; angular to subangular; fine upper to very coarse upper, dominantly medium upper to coarse lower; poorly sorted; disaggregated to very loosely supported with white to grayish white ashy matrix; moderate to very calcareous; abundant white ashy tuff; fragile to pulverulent. Tuffaceous Claystone/ Tuffaceous Siltstone (8340' - 8460') = light gray to light brownish gray with light to medium brown secondary hues; soft to moderately firm; sticky at times; rounded, irregular shaped cuttings with scooped appearance from pdc bit; silty to clayey texture; dull, earthy luster; occasionally gritty and sparkly from sand and ash content; non calcareous; trace dark brown to black microthin carb lams and particles. Tuffaceous Claystone/ Tuffaceous Siltstone ( 8440' - 8510') = light brownish gray to light yellowish gray to light gray with light to medium brown secondary hues; soft to slightly firm; rounded to irregular shaped cuttings; silty to clayey to gritty texture from very fine suspended sands; dull to sparkly luster from strong ash content; moderately soluble; slight to moderately expansive when hydrated; fair cohesiveness; fair to good adhesiveness; moderate to very calcareous; trace black, microthin carbonaceous laminations • and inclusions. El EPOCH 8 f MARATHON OIL COMPANY KBU 41 -18X Sandstone ( 8480' - 8570') = light gray to greenish gray to light grayish brown; fine lower to upper; angular to subangular; moderate to moderately well sorted; friable; non calcareous cement; trace black, microthin laminations and inclusions in light greenish gray sandstone; light grayish brown sandstone commonly grades to sandy siltstone. Sand/ Sandstone/ Tuffaceous Sandstone/ Conglomeratic Sand/ Conglomerate (8570'- 8625') = very light gray to medium Tight gray; white intergrain volcanic ash dominates color; very fine upper to rare pebble fragment; most moderately sorted within medium lower to coarse upper with prominent second mode of very coarse to granule clasts; dominant matrix supported by white to very light gray volcanic ash (and probably kaol, montmrnite alteration of ash and weathered minerals); note that conglomeratic clasts are 95 %+ quartz rather than lithic arenite composition of associated sand; angular to subangular, but most conglomeratic clasts are rounded; note several types of sandstone support and cementation; common combo of intergrain ash with secondary calcite. Complex Carbonaceous Sediments And Coal (8625'- 8700') = various volcanic ash derived sediments with very high carbonaceous content; note increasing coal lamina thru interval, and beds of sub - bituminous coal in basal part; most rocks medium brown; very carbonaceous tuffaceous siltstone/ claystone; spotty carbonaceous tuff, silty sandstone some cuttings pieces have large soft clasts of very "coaly" mudstone and abundant carbonaceous particles concentrated in layers. 40 El EPOCH 9 MARATHON OIL COMPANY KBU 41 -18X 3.2. SAMPLING PROGRAM AND DISTRIBUTION KBU 41 -18X Set Type and Purpose Interval Frequency Distribution Marathon Oil Company c/o C & M Storage, Inc. Washed and Dried 20' 3311 S U.S. Highway 77 A 5475' — 8740' Intervals Schulenburg, TX 78956 Attn: Dave Martens (713) 296 3302 BOX INTERVAL : 5475'- 6580', 6580' — 7700', 7700' — 8740'TD Li EPOCH 10 M MARATHON OIL COMPANY KBU 41 -18X 4. DRILLING DATA 4.1. DAILY ACTIVITY SUMMARY 3/17/2008: Finish circulating drill pipe clean. Blow down mud lines. Rig down kill line and 2" valve. Pull out of hole with 5" drill pipe. Lay down pup and stab -in tool. Rig down false rotary. Remove elevators. Pick up on 13 3/8" casing and remove base plate. Lay down running and handling tools. Remove and lay down mousehole. Flush stack and clean annular preventer thoroughly before nipple down. Clear and clean floor and cellar. Prepare to nipple down diverter. Unchain diverter line. Nipple down knife valve. Nipple down trip tank actuator, bleeder line, fill) -up line and trip tank line. Begin pumping off mud and cleaning pits. Pull all but the last 4 bolts on the stack. Make rough cut on 13 3/8" casing and remove cut section. Rig down bell nipple and flow line extension. Nipple down and load off diverter stack. Remove and load off starter head and 4" valve. Spot Vetco -Gray 13 3/8" slip lock connection by 13 5/8" 5M multibowl wellhead. Make cut on 20" conductor. Remove and load off cut section. Spot spacer spool. Begin mixing and building new Flo -Pro mud. Make final cut and dress 13 3/8" casing. Set multi -bowl wellhead and test to 1500psi (for 10 minutes). Nipple up BOPE. Set spool and stack. Rig up /nipple up choke and kill lines, trip tank acutuator and trip tank hoses. Chain stack and adjust turnbuckles. Prepare to test BOPs. Pull wear ring. Make up and run in test joint assembly. Set test plug. Rig up testing equipment. Attempt initial BOP test. Observe leaks at upper and lower lock downs. Tighten lock downs and restart BOP test. Leaks continue. Wait on Vetco -Gray to begin troubleshooting. Test gas alarms. 3/18/2008: Troubleshoot and correct leaks at lockdowns. Test all BOPE (annular, upper and lower pipe rams, check valve, upper and lower Topdrive IBOPs, floor valve, dart valve, HCR, inside and outside kill valves, manual choke, blind rams, CMVs 1 -12) to 250psi Low/ 4000psi High for 5 minutes. Test accumulator. Rig down test equipment. Pull test plug. Set wear ring. Blow down lines. Rig up handling equipment for picking up 5" drill pipe. Strap, drift, pick up, make up, run in hole and then pull out of hole standing back 5" drill pipe (total of 110 joints /55 stands). Rig up and test casing to 1500psi for 30 minutes. Rig down test equipment. Pick up, make up and run in hole directional tools (bit, motor, stabilizer, pony collar, MWD, 2 flex joints, crossover), then continue in hole with HWDP (total bottom hole assembly) to 797'. Scribe, orient and shallow test MWD. Continue running directional assembly in hole with 5" drill pipe to 1364'. Wash from 1364' and tag top of shoe tract at 1411'. Clean out cement, drill out float equipment and continue drilling out remaining shoe tract (cement, shoe, rathole) to 1500'. Drill 20' of new hole from 1500' to 1520'. Circulate bottoms up. Pump 25 bbls of water, followed by 30 bbl Hi -Vis sweep and chase with new 9.1 ppg Flo -Pro mud to displace the old spud mud. Rig up and run Formation Integrity Test to 13.0ppg EMW. Blow down choke. Begin building up Flo-Pro mud volume. Drill from 1520' to 1852'. 3/19/2008: Drill (rotating and sliding) from 1852' to 3004'. Circulate bottoms up. Circulate and clean hole. Check for flow. Pump dry job. Pull out of hole from 3004' to 1425' on wiper trip to shoe. Service Topdrive, carrier, and crown. Check crown -o- matic. Run back in hole from 1425' (to 1930'). 3/20/2008: After wiper trip to 1425', continue running back in hole (from 1930') to 2941'. Wash down from 2941' to 3004' (with no fill). Drill from 3004' to 4462'. Note intermittent mud losses of 15 -20 bbls per hour 3/21/2008: Drill (rotating and sliding) from 4462' to 4834'. (Note continued intermittent losses of 15 -20 bbls per hour). Circulate bottoms up. Pump around Hi -Vis sweep with increased Safecarb. Circulate and clean hole. Pump and spot Mix II- Safecarb LCM pill near bottom. Pull out of hole from 4834' to 2939' on wiper trip. Briefly service rig. Run back in hole from 2939' to 4771'. Wash down from 4771' to 4834' with no fill. Record 18 units of wiper gas. Drill (rotating and sliding) from 4834' to 5475'. (Note continued intermittent losses decrease to 10 -15 bbls per hour). Begin circulating bottoms up. • Li EPOCH 11 t D MARATHON OIL COMPANY KBU 41 -18X 3/22/2008: Circulate bottoms up. Circulate, clean and condition hole. Observe mud loss of 20 bbls per • hour while circulating. Check for flow. Pull out of hole from 5475' to 1425' on wiper trip to shoe. Note during 15 bbls of mud loss during trip. Slip and cut 33' of drill line. Set and check crown -o- matic. Adjust brakes. Grease crown. Service rig and Topdrive. Run back in hole from 1425' and tag bridge at 5370'. Wash and ream through bridge from 5370' to 5380' and continue to wash down to 5475'. Circulate bottoms up. Record 21 units of wiper gas. Observe 15 bbls of mud loss by first bottoms up. Continue to circulate, clean and condition hole. Mud Toss drops to 5 bbls per hour while circulating. Pull out of hole to 5330'. Pulling tight initially from 5475' to 5455' and again at 5405' to 5370'. Work through tight zone from 5405' to 5370'. Run back in hole from 5339' to 5470' and wash last 5' to bottom at 5475'. Circulate, clean and condition hole (with negligible mud loss). Check for flow. Pull out of hole from 5475' to 4771'. Run back in hole from 4771' to 5460'. Wash down from 5460' to 5475' with no fill. Circulate bottoms up. Record 5 units of wiper gas. Continue circulate, clean and condition hole. Pump around sweep. Mud losses are less than 5 bbls per hour and negligible after pumping around sweep. Check for flow. Pull out of hole from 5475' to 4000'. Pump and spot 50 bbl LCM pill (made with 50ppb 10 -20 -250 grade Safecarb, 10ppb G -Seal, 6ppb fine and medium Mix II). Continue to pull out hole from 4000' to 1485'. Check for flow. Note approximately 2+ bbls of mud loss per hour while pulling out. Continue to pull out hole from 1485' to top of bottom hole assembly at 797'. Pull out of hole standing back HWDP and jars. 3/23/2008: Pull out of hole laying down directional assembly. Break and lay down crossover sub, NM flex joints, NM crossover, MWD collar, short NMDC, string stabilizer, mudmotor and bit. Rig down, lay down and clear handling tools. Clean rig floor and cellar. Pull wear bushing. Hold pre -job meeting on changing rams. Close blind rams. Change out upper 2 7/8" by 5 1/2" variable pipe rams to 9 5/8" casing rams. Run test plug. Pick up, make up and install test joint. Rig up test equipment. Test casing rams to 250psi Low / 3500psi High. Rig down test equipment. Pull test plug. Close annulus valve. Using single joint elevators, drift BOPs with landing joint and hanger. Mark elevation on landing joint. Move breakout tongs to driller's side and install correct tong head. Remove elevators and short bails. Install Lafleur fill - up tool. Install long bails and pick -up sling -line. Install casing elevators. Move torque tube back in derrick for clearance. Rig up and test stabbing board. Rig up Weatherford casing tongs and tall snub post. Remove rotary bushings. Rig up casing spider slips. Make up EZ -turn valve onto casing swage (to act as a safety valve), function test and record in IADC. Pick up centralizers and lock rings and stage on rig floor. Tie one (red) tugger line back in derrick for picking up pipe, and the second (blue) tugger line back for hanging casing tongs. Hold pre job meeting with all hands on procedures and safety for running intermediate casing string. Run in hole with 9 5/8" casing as per Marathon program. Pick up and make up shoe track (shoe joint, spacer joint, float collar) and run in hole. Clean and Bakerlok casing threads on each successive shoe track joint while making them up. Circulate through shoe track and check float equipment. Resume running in hole with 9 5/8" casing as per Marathon. Attach centralizers as per tally. Fill every joint on way in. Run casing to 1452' (inside shoe). Circulate bottoms up (at 140spm, 275gpm, 375psi). Continue running in hole with 9 5/8" casing from to 5414'. Position fill -up tool so joint can be circulated down. Open and remove spider slips. Break circulation and wash down from 5414' to landing depth of 5458'. Land hanger on load shoulder in multi -bowl wellhead. Drain stack and verify landing. Make up cementing head with top and bottom plugs pre - installed. Circulate bottoms up and continue to clean and condition clean. Record 9 units of trip gas. Hold pre -job meeting with BJ on procedures and safety for cement job. • El EPOCH 12 IQ MARATHON OIL COMPANY KBU 41 -18X 3/24/2008: Continue circulating through cementing head. BJ batching up cement while circulating. Blow O air through cement valve and line to clear. Switch to BJ pumping unit. Pump 2 bbls of water and pressure test lines to 3000psi. Drop first (bottom) plug. Mix and pump 30.0 bbls of 10.0ppg Seal Bond sweep (using 28.64 bbls of mix water and adding 300 Ibs of Ultra Seal Plus LCM material before pumping), and follow with 168.0 bbls of batched up 10.5ppg cement slurry (281 sacks of Class G cement plus accelerator chemicals mixed with 84.68 bbls water to yield 12.658 gal /sk and 3.314 cu- ft/sk). Drop second (top) plug. Pump 5.0 bbls of water to kick out the top plug. Switch over to rig pumps. Displace with 402.35 bbls (8565 strokes) of mud (and 407.35 bbls total displacement). Bump plug at calculated strokes with 500psi over - pressure (and 1000psi total pressure). Bleed off. Check floats. Cement in place. Blow down and rig down BJ cementing head and cement lines. Back out and lay down landing joint. Make up 9 5/8" pack -off and run in on 1 joint of HWDP. Energize seals and test pack -off to 5000psi for 10 minutes. Remove sling line. Rig down, lay down and load off the Lafleur fill -up tool, casing elevators and long bails. Rig up short bails and drill pipe elevators. Move tong hanging sheave and hang rig tongs. Offload remaining Weatherford equipment. Blow down Topdrive, mud lines and mud pumps. Lock - out - tag -out and perform service work on Topdrive and carrier. Change oil in #1 carrier motor. Change out upper 9 5/8" casing rams to 2 3/8" X 5 1/2" variable pipe rams. Rig down stabbing board. Clean rig floor. Run in test plug. Rig up testing equipment. Test all BOPE to 250psi Low /3500psi High for 5 minutes (annular preventer, upper pipe rams, check valve, dart valve, upper Topdrive IBOP, CMVs 1- 10- 11 -12, floor valve, lower Topdrive IBOP, outside kill valve, CMVs 6 -8 -9, inside kill valve, CMVs 2 -5- 7, HCR, manual choke CMVs 3 -4, blind rams). Do accumulator performance test. Blow down mud lines. Rig down testing equipment. Pull test plug. Install wear bushing. Prepare rig floor for picking up directional bottom hole assembly. Pick up, make up and run in hole directional assembly (8 1/2" bit, mudmotor, MWD, NM string stabilizer, short NMDC, MWD, NM crossover , 2 NMCSDPs, NM crossover, 21 joints 5" HWDP plus jars) to 794'. Surface test MWD tool. Continue running in hole with 5" drill pipe to 5336'. Level carrier to help center the crown position (and get more cleanly over the hole). Change out the Topdrive's hydraulically activated mud saver valve. Pull out of hole from 5336' (to 5084'). O 3/25/2008: Continue pulling out of hole (from 5084') to top of bottom hole assembly at 794' standing back pipe in the derrick. Prepare to pick up drill pipe off of the pipe rack. Pick up, make up and run in hole with 5" drill pipe from pipe rack to 2622' (after making up to last joint of HWDP). Test casing to 1500psi for 30 minutes. Continue to pick up, make up and run in hole 5" drill pipe to plug on top of float collar at 5372'. Treat drilling mud in pits while picking up drill pipe. Prepare to start adding new batches of mud. Drill out plug, float collar and remaining shoe tract (cement, shoe, rathole) to 5475'. Drill 20' of new hole from 5475' to 5495'. Circulate bottoms up and continue to circulate hole clean. Condition mud by largely replacing old mud in hole with treated mud. Perform Leak Off Test to 14.4 EMW (9.3mw, 1440psi, 5390 tvd). Blow down choke manifold, kill lines and choke lines. Drill (rotating and sliding) from 5495' to 6160'. 3/26/2008: Drill from 6160' to 7042'. Circulate bottoms up. Pull out of hole from 7042' to 6349' on wiper trip. Run back in hole from 6349' to 6979'. Wash down from 6979' to 7042'. Record 62 units of wiper gas. Drill from 7042' to 7612'. 3/27/2008: Drill from 7612' to 8115'. Troubleshoot MWD tool signal problem. Circulate bottoms up and continue to circulate and condition hole while attempting to restart MWD signal. Make decision to continue drilling ahead without real time survey information. Drill from 8115' to 8740'. Circulate bottoms up and continue to circulate, clean and condition hole prior to wiper trip. Raise mud weight throughout the past 24 hours of drilling from 9.9 ppg to 11.7 ppg. • El EPOCH 13 IQ MARATHON OIL COMPANY KBU 41 -18X 3/28/2008: Continue to circulate, clean and condition hole prior to wiper trip. Increase mud weight from 11.1 ppg to 11.6ppg while circulating. Check for flow. Pull out of hole to 7800' on 15 stand wiper trip. (Pull through tight spot at 7870'). Run back in hole from 7800' to 8684'. Wash down from 8684' to 8740'. Clean out 6' of fill on bottom. Begin circulating bottoms up. Record 2000 units of wiper gas (800 strokes short of bottoms up). Close choke. Circulate through gas buster. Circulate gas down to 180 units. Open choke and continue circulating through flow line. Begin increasing mud weight while circulating. Circulate gas down to 100 units (over next 3200 strokes) before first batch of heavier mud "turns corner ". Circulate and increase mud weight from 11.6ppg to 12.1+ppg. Check for flow. Pull out of hole on wiper trip from 8740' to 5403' (just inside shoe). Encounter 45 minor tight spots on way out that require circulating, backreaming- reaming and working through. Service carrier and Topdrive. Run back in hole from 5403' to 8682'. Wash and ream from 8682' to 8740'. Clean out 10' of fill on bottom. Circulate bottoms up. Record 222 units of wiper gas. Continue to circulate, clean and condition hole. Check for flow. Pump dry job. Pull out of hole (clean) from 8740' to top of HWDP at 794'. 3/29/2008: Pull out of hole standing back HWDP and jars. Pull out of hole laying down directional assembly (crossover sub, NM flex joints, NM crossover, MWD collar, short NMDC, string stabilizer, mudmotor and bit). Plug into MWD tool and dump memory before laying down. Unable to recover survey data past time of initial tool failure so attempt second dump of MWD and again fail to recover post - failure data. Finish breaking and laying down lower directional assembly. Lay down and clear handling tools. Service Topdrive. Clear and clean rig floor. Lay down handling tools. Hold pre -job meeting with Weatherford Wireline Services' loggers on procedures and safety for handling wireline logging tools. Hang sheaves and rig up Weatherford's wireline running equipment. Pick up, make up and run in hole with Quad -Combo logging assembly. Load sources for neutron tools. Run in hole to near bottom (8733'). Log up from with Quad -Combo assembly from 8733' to 3000'. Pull out of hole. Unload sources. Break and lay down logging tools. Rig down sheaves and wireline running equipment. Pick up and make up mule shoe to first stand of open -ended 5" HWDP. Run in hole with 5" HWDP and 5" drill pipe to 5434'. Cut and slip 148' of drill line. Reset and check crown -o- matic. Continue running in hole with drill pipe from 5434' to 8725'. Break circulation, begin circulating bottoms up, and then pull back uphole to 8600'. Circulate bottoms up. Record 1004 units of trip gas. Observe many large fragments of coal and other rocks with trip returns. Continue to circulate until hole thoroughly clean. Pull up to 8521'. Hold pre -job meeting with Weatherford Wireline Services' loggers on procedures and safety for handling wireline logging tools. Rig up pump in sub, floor safety valve and packoff (with pipe set at 8521'). Hang sheaves and rig up Weatherford's wireline running equipment. Pick up, make up and run in hole MFT logging assembly inside the 5" drill pipe. • El EPOCH 14 i MARATHON OIL COMPANY KBU 41 -18X 3/30/2008: Run downhole inside 5" drill pipe and HWDP with Weatherford Wireline Services' MFT • (pressure sampling) logging assembly, past the muleshoe set at 8521', and into open hole. Continue downhole and make logging depth adjustment with gamma log. Log up with MFT formation tester, attempting pressure points from 8631' to 8418'. Note that all tests were either bleeding to hydrostatic, plugged, tight, leaking off due to seal failure, anomalously reading above hydrostatic or questionable in some other way. Pull back up into drill pipe at 7800' and function test calipers. Note anomalous surge readings above hydrostatic before apparently stabilizing. Run back down into open hole and log up with MFT formation tester, attempting pressure points from 8629' to 8598'. Repeat very similar failed tests as previous run. Pull out of hole with MFT assembly. Inspect logging assembly. Clean logging tools, clean screen, change o- rings, make small torque adjustments at connectors, wash out bowsprings and function test at surface. Run back in hole through drill pipe as before. Function test logging tool in drill pipe before re- entering open hole. Run to previous start point. Log up (and down) with MFT formation tester, successfully taking pressure points (when seal could be maintained) from 8631' to 8547'. Pull out of hole with MFT assembly. Handle and hang wireline assembly in derrick. Move and hang aside sheaves and topside wireline equipment. Rig down pack -off, floor valve and pump -in sub and secure on rig floor. Pull 5" drill pipe out of hole from 8521' to 7134'. Rig up pump in sub, floor safety valve and packoff. Re -hang sheaves and rig up WWS wireline running equipment. Un -hang MFT logging assembly and prepare to run back in hole. Run the MFT assembly down pipe, through the mule shoe at 7134' and down hole to 7709'. Log up with MFT formation tester, successfully taking pressure points from 7709' to 7334'. Observe severe drag as MFT assembly is being pulled up from 7334' to last 2 test points in stage (7207', 7197'). Keep pulling into drill pipe. Attempt to go back down, but unable move pipe downward. Appears that an obstruction within the open -ended is drill pipe is preventing the logging assembly from sliding back down. Pull the MFT assembly out of hole with some difficulty all the way to surface. Handle and inspect logging tools and discover damage to extend arm caliper and sensor module of the MFT tool. One of the arm's protector plates was missing, and the sensor instrument was damaged. Replace, repair and function test all missing and damaged parts. Rig up pump in head and 2" line to pump -in sub. Pump to clear out the broken off and potentially wedged -in MFT caliper shield. Rig down the pump -in head and all line. Prepare rig floor to run the repaired MFT assembly back in hole. Run the MFT assembly down pipe, through the mule shoe at 7134' and down hole to 7207'. Log up with MFT formation tester, successfully taking pressure points from 7207' to 7195'. El EPOCH 15 MARATHON OIL COMPANY KBU 41 -18X 3/31/2008: Finish taking pressure point at 7195'. Pull out of hole with MFT logging assembly. (Pull slowly through muleshoe to avoid potential damage to tester). Lay down wireline assembly on catwalk. Rig down sheaves, topside wireline equipment, pack -off, floor valve and pump -in sub and secure on rig floor. Run in hole with 5" drill pipe from 7134' to 8725'. Circulate bottoms up. Record 1205 units wiper gas. Circulate out high gas. Clean and condition hole. Observe large chunks of coal cuttings over shakers during high gas. Circulate gas down to 6 units. Check for flow. Pump dry job. Fill trip tank. Pull 5" drill pipe out of hole from 8725', locally pulling 25K over, and set muleshoe at 6000'. Pick up, rig up, re- install, and reset sheaves, topside wireline equipment, pack -off, floor valve and pump -in sub. Pick up off catwalk, prep and run MFT logging assembly back in hole through 5" drill pipe as before. Function test logging tool in drill pipe before re- entering open hole. Run the MFT assembly through the mule shoe at 6000' and down hole to 7023'. Log up with MFT formation tester, successfully taking pressure points from 7023' to 6613'. Unable to p ull off point at 6613' at 12:00 hours. (Note top assembly Note to of tool assembl at 6582'). p Unable to work back down. Pull to 5200psi maximum (75% of line connection strength) on initial try and hold at 5000- 5200psi. Briefly slack down tension to 2000psi and open calipers to try pushing off logging assembly. Repeat process of holding at maximum pull, slacking down tension and open calipers 2 more times without success. Continue holding at constant maximum allowed tension (5200- 5400psi) for 2+ hours while arranging fishing operations. Note expectations for pulling stuck tools free are greatly diminished beyond the first 30 minutes of constant tension, but still possible that tool would come free. Fishing tools and personnel arrive on location. Hold meeting with Weatherford wireline hands and Baker fishing hands on procedures and safety for fishing operations. All operations to follow instruction of fishing hand. Pick up all needed fishing tools on rig floor. Organize remaining fishing tools next to catwalk. Rig down pump in sub, floor valve, and pack -off. Reset and secure top sheave high in derrick. Mount T -bar over drill pipe and clamp and secure wireline. Slack off at drum and remove pull tension on wireline. Cut wireline and install quick- connect socket connectors on cut ends. Make up weight bars to be joined to the connectors. Thread line up through upper sheave, reconnect connectors and weight bars, pull back with drum to lift T -bar off pipe and test the joined connections to maximum pull tension. • Test good. Slack off and disconnect line ends. Thread line through first open ended stand to be run in, re- attach at connectors and weight bars, remove T -bar and attempt strip in hole over wireline with the drill pipe. Unable to strip down because pipe is stuck at 6001'. Reverse connection procedures to T -bar support. Pick up special wireline circulating sub with internal mounting plate, thread wireline through, make up sub to drill pipe, tension up -slack down- tension up through -pipe end of wireline and secure to plate. Pick up and kelly up next stand of drill pipe with Topdrive and make connection. Circulate through pipe at 2.8 bpm while putting on 2 rounds torque. Circulate for 8 minutes and free up pipe with 165K up weight and 125K down weight. Break and stand back kelly stand. Reverse procedure for installing circulating sub, set T- bar again and lay down sub. Pick up first (kelly stand), repeat wireline thread - through, bar connections, fast connections, connection test, T -bar removal, pipe make -up /torque -up, and begin stripping in hole, very carefully sliding drill pipe down the wire while maintaining minimum 1000 Ibs and maximum 2500 Ibs tension on the wireline while it is alternately fed out and drawn back on the drum. Continue strip -in procedures and detect wireline and logging assembly quickly break free only 2 1/2 stands in at estimated 6158'. Continue sliding down third stand. T -bar wire to drill pipe. Slack off, feed out extra wire from drum, cut off socket connectors and weight bar, tie the loose sections of cut wire from the drill pipe side and the drum side into a butterfly knot, tape up the long excess strands from the knot to their feed wires with electrical tape to form single tight solid line, feed the now rejoined line past the lower sheave to prevent binding and spool the rejoined line back onto the drum. Reposition the sheaves to prevent the wireline from rubbing and abrading to hard on the drill pipe when it is pulled through the open box end. Pull and restore tension to the line and lift off the T -bar and safety plate from the pipe end. Remove the T -bar and begin slowly pulling the logging assembly to the surface. Raise the upper sheave with elevators to provide maximum clearance for the wireline. Pull logging assembly slowly back up inside the drill pipe. Re- install the pack -off and floor valve. Pull the MFT assembly out of the hole. Rig down the pack -off and floor valve. Lay down the logging tools. Rig down and lay down the sheaves and remaining wireline running equipment. Clear and clean rig floor. Prepare to pull out of hole with 5" drill pipe. • El EPOCH 16 d(T)01 MARATHON OIL COMPANY KBU 41 -18X 4/1/2008: Check for flow. Blow down mud lines. Pull 5" drill pipe out of hole from 6188' to 9 5/8" shoe at 5458'. Fill trip tank. Blow down mud lines. Continue pulling 5" drill pipe out of hole from 5459' to 629'. Pull 5" HWDP out of hole from 629' to surface. Break and lay down last joint of HWDP and mule shoe. Pick up, make up and run in hole combined directional and clean out run assembly (rerun mill tooth bit, bit sub, NM flex joint, MWD collar, NM crossover sub, 2 NM flex joints, crossover sub, 4 HWDP, jars, 17 HWDP) to 785'. Continue running in hole with 5" drill pipe from 785' to tight spot at 8660'. Wash ream and ream through tight spot 8660' -8665' and coal at 8704' on way to bottom at 8740'. Also observe some minor differential sticking at connections. Circulate bottoms up. Record gas over 200 units for a 71 minute duration that included 390 units of trip gas. Observe many large cuttings chunks of coal with high gas returns (that nearly filled the cuttings tank). Continue circulating to clean and condition hole. Transfer 200 bbls of mud to Hansen Tank while circulating, and add 2% Lubetex to remaining mud system. Check for flow. Pump dry job. Pull out of hole from 8740' to 6911' on 29 stand wiper trip. Run back in hole from 6911' to 8740'. Circulate bottoms up. Record 38 units of wiper gas. Circulate, clean and condition hole. Observe significantly less coal after wiper trip than after the full trip. Check for flow. Pump dry job. Pull out of hole from 8740' to shoe at 5458'. Continue pulling out of hole from 5458' (to 1880') laying down 5" drill pipe. 4/2/2008: Pre tour safety meeting, Note pre job safety meetings were held before each phase of the daily operation. . Continue laying down 5" drill pipe and BHA #4. Run into hole with 5" drill pipe from derrick to 3470' and lay down. Pull the wear ring. Clean rig floor. Rig down pipe handling tools. Level up the carrier. Rig up to run escape completion and change bails. Continue to rig up Weatherford, escape, Pollard Wireline and ASRC crane operator. Pick up and make up float shoe and float collar. Check float and continue running into hole with 3.5" escape completion as per program 4/3/2008: • 4/4/2008: • Li EPOCH 17 • • • MARATHON OIL COMPANY KBU 41 -18X 4.2. SURVEY RECORD Rectangular Rectangular Measured Inclination Azimuth TVD Vertical Coordinate Coordinate Closure Closure DLS Depth Section Azimuth +) N/S ( -) ( +) E/W ( -) (ft ) (deg) (deg) (ft) (ft ) (ft) (ft ) (ft ) (deg) (deg /100 ft) 0.00 0.00 000.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 139 0.00 263.82 139.00 0.00 0.00 0.00 0.00 263.82 0.00 155 0.49 263.82 155.00 0.04 -0.01 -0.07 0.07 263.82 3.06 215 0.50 290.48 215.00 0.42 0.06 -0.57 0.57 275.66 0.38 275 0.25 317.08 275.00 0.78 0.24 -0.90 0.94 285.10 0.50 335 0.61 293.16 334.99 1.20 0.47 -1.29 1.37 289.88 0.66 395 0.59 293.45 394.99 1.77 0.71 -1.86 2.00 290.96 0.03 454 0.82 299.20 453.99 2.45 1.04 -2.51 2.72 292.51 0.41 514 1.00 296.89 513.98 3.34 1.49 -3.35 3.67 293.92 0.31 575 1.28 313.37 574.97 4.51 2.20 -4.32 4.85 296.93 0.70 635 1.29 308.58 634.95 5.85 3.08 -5.34 6.16 299.96 0.18 695 1.43 302.18 694.93 7.23 3.90 -6.50 7.58 300.95 0.34 755 1.15 295.17 754.92 8.50 4.55 -7.68 8.93 300.66 0.53 818 1.09 295.11 817.91 9.63 5.07 -8.79 10.15 299.99 0.10 880 1.14 286.80 879.90 10.70 5.50 -9.92 11.34 299.03 0.27 943 0.81 292.41 942.89 11.63 5.85 -10.93 12.40 298.18 0.54 1006 0.04 073.21 1005.88 12.03 6.03 -11.32 12.83 298.05 1.34 1070 0.22 174.22 1069.88 11.92 5.91 -11.29 12.74 297.66 0.36 1133 0.27 156.01 1132.88 11.68 5.66 -11.21 12.56 296.78 0.15 1197 0.21 199.25 1196.88 11.48 5.41 -11.19 12.43 295.80 0.29 1260 0.45 168.01 1259.88 11.21 5.06 -11.18 12.27 294.35 0.46 1323 0.41 197.08 1322.88 10.87 4.60 -11.19 12.10 292.35 0.35 1387 0.44 189.12 1386.88 10.60 4.14 -11.30 12.03 290.12 0.10 1440 0.68 196.51 1439.88 10.30 3.64 -11.42 11.99 287.67 0.47 1492 0.62 176.96 1491.87 9.92 3.06 -11.49 11.89 284.91 0.44 1555 0.68 173.88 1554.87 9.35 2.35 -11.43 11.67 281.61 0.11 Li EPOCH 18 • ( M • 0 "'""'°" MARATHON OIL COMPANY KBU 41 -18X Rectangular Rectangular Measured Inclination Azimuth TVD Vertical Coordinate Coordinate Closure Closure DLS Section Azimuth Depth ( +) N/S ( -) ( +) E/W ( -) (ft) (deg) (deg) (ft ) (ft) (ft) (ft) (ft ) (deg) ( deg /100ft) 1619 0.65 170.57 1618.86 8.73 1.61 -11.33 11.45 278.10 0.08 1681 0.83 175.16 1680.86 8.08 0.82 -11.24 11.27 274.17 0.31 1745 0.95 182.18 1744.85 7.32 -0.17 -11.22 11.22 269.12 0.25 1808 0.96 197.04 1807.84 6.67 -1.20 -11.40 11.46 263.99 0.39 1872 1.04 180.43 1871.83 5.96 -2.29 -11.56 11.78 258.78 0.47 1935 1.23 197.85 1934.82 5.19 -3.51 -11.77 12.28 253.40 0.62 1998 1.23 189.89 1997.81 4.43 -4.82 -12.09 13.02 248.27 0.27 2060 1.20 180.20 2059.79 3.53 -6.12 -12.21 13.66 243.36 0.33 2124 1.41 148.99 2123.78 2.26 -7.47 -11.80 13.97 237.68 1.14 2187 1.85 135.57 2186.75 0.48 -8.86 -10.69 13.89 230.36 0.92 2250 2.02 122.95 2249.72 -1.61 -10.19 -9.05 13.63 221.61 0.73 2313 1.41 110.84 2312.69 -3.37 -11.07 -7.39 13.31 213.74 1.12 2376 0.57 046.78 2375.68 -4.04 -11.13 -6.44 12.86 210.06 2.01 2440 1.00 350.74 2439.67 -3.56 -10.36 -6.30 12.12 211.30 1.30 2504 1.81 342.31 2503.65 -2.17 -8.85 -6.70 11.09 217.12 1.30 2567 2.85 337.95 2566.60 0.22 -6.45 -7.59 9.96 229.64 1.67 2630 3.88 338.06 2629.49 3.70 -3.02 -8.97 9.46 251.41 1.63 2693 4.92 340.13 2692.30 8.22 1.50 -10.69 10.79 277.99 1.67 2756 6.20 339.32 2755.01 13.90 7.22 -12.80 14.70 299.43 2.04 2820 7.63 338.22 2818.54 21.13 14.40 -15.60 21.23 312.71 2.24 2882 8.79 333.74 2879.90 29.57 22.47 -19.23 29.58 319.45 2.14 2946 10.09 328.70 2943.04 39.80 31.65 -24.30 39.90 322.48 2.41 3009 10.51 324.05 3005.02 50.95 41.02 -30.54 51.14 232.33 1.48 3072 10.95 318.60 3066.92 62.65 50.16 -37.87 62.85 322.94 1.75 3135 11.77 316.64 3128.69 75.06 59.32 -46.24 75.21 322.06 1.44 3198 13.18 317.29 3190.20 88.66 69.27 -55.53 88.78 321.28 2.25 3261 13.32 316.84 3251.52 103.10 79.84 -65.36 103.18 320.69 0.28 3324 14.27 318.32 3312.70 118.12 90.93 -75.49 118.18 320.30 1.61 3386 15.36 318.04 3372.64 133.97 102.75 -86.06 134.03 320.05 1.76 Li EPOCH 19 • • • fQ MARATHON OIL COMPANY KBU 41 -18X Rectangular Rectangular Measured Inclination Azimuth TVD Vertical Coordinate Coordinate Closure Closure DLS Depth Section Azimuth ( +) N/S (-) ( +) E/W (_) (ft) (deg) (deg) (ft ) (ft ) (ft ) (ft ) (ft) (deg) ( deg /100 ft) 3450 15.41 318.37 3434.35 150.95 115.40 -97.38 151.00 319.84 0.16 3513 15.33 318.61 3495.10 167.65 127.91 - 108.44 167.69 319.71 0.16 3575 15.20 318.44 3554.91 183.97 140.14 - 119.25 184.01 319.60 0.22 3639 14.95 317.86 3616.71 200.62 152.54 - 130.36 200.65 319.48 0.46 3702 14.89 317.67 3677.58 216.84 154.55 - 141.26 216.87 319.35 0.12 3766 14.87 318.82 3739.44 233.27 176.81 - 152.21 233.30 319.28 0.46 3829 14.77 318.61 3800.34 249.38 188.92 - 162.84 249.41 319.24 0.18 3892 14.73 318.71 3861.26 265.42 200.96 - 173.43 265.45 319.20 0.08 3954 14.67 319.39 3921.23 281.15 212.84 - 183.74 281.18 319.20 0.29 4017 15.21 318.84 3982.10 297.40 225.12 - 194.38 297.42 319.19 0.89 4080 15.82 317.79 4042.81 314.25 237.70 - 205.59 314.27 319.14 1.07 4143 15.89 318.59 4103.41 331.46 250.53 - 217.06 331.48 319.09 0.36 4207 15.66 317.88 4165.00 348.86 263.51 - 228.65 348.88 319.05 0.47 4270 15.53 317.74 4225.68 365.79 276.06 - 240.02 365.81 318.99 0.21 4332 15.57 318.58 4285.41 382.41 288.44 - 251.11 382.43 318.96 0.37 4395 15.47 318.82 4346.12 399.27 301.10 - 262.23 399.29 318.95 0.19 4458 15.44 319.15 4406.84 416.06 313.77 - 273.25 416.08 318.95 0.15 4522 15.41 317.14 4468.53 433.08 326.45 - 284.61 433.10 318.92 0.84 4585 15.59 315.64 4529.24 449.90 338.64 - 296.22 449.91 318.82 0.70 4649 15.44 315.32 4590.91 467.00 350.84 - 308.22 467.01 318.70 0.27 1 4712 15.50 316.03 4651.63 483.78 362.87 - 319.97 483.79 318.59 0.32 4775 15.48 316.24 4712.34 500.60 375.00 - 331.62 500.60 318.51 0.09 4839 15.43 316.88 4774.02 517.64 387.38 - 343.35 517.64 318.45 0.28 4901 15.39 316.71 4833.80 534.11 399.39 - 354.63 534.11 318.40 0.10 4964 15.48 316.65 4894.52 550.87 411.59 - 366.13 550.87 318.34 0.15 5027 15.42 316.86 4955.25 567.65 423.81 - 377.63 567.65 318.30 0.13 5089 15.33 316.88 5015.03 584.08 435.81 - 388.87 584.08 318.26 0.15 5153 14.78 315.79 5076.83 600.69 447.84 - 400.35 600.69 318.20 0.97 5216 13.96 315.78 5137.86 616.31 459.04 - 411.25 616.32 318.14 1.30 Li EPOCH 20 0 • S OfQ MARATHON OIL COMPANY KBU 41 -18X Measured Rectangular Rectangular Depth Inclination Azimuth TVD Vertical Coordinate Coordinate Closure Closure DLS Section Azimuth ( +) N/S ( -) ( +) E/W ( -) (ft ) (deg) (deg) (ft ) (ft ) (ft ) (ft) (ft) (deg) ( deg /100 ft) 5279 13.31 316.97 5199.08 631.15 469.79 - 421.50 631.16 318.10 1.12 5342 12.25 317.26 5260.52 645.08 480.00 - 430.98 645.09 318.08 1.69 5404 11.40 317.37 5321.21 657.79 489.34 - 439.60 657.80 318.07 1.37 5476 10.68 316.84 5391.87 671.57 499.44 - 448.98 671.58 318.05 1.01 5540 9.71 318.49 5454.86 682.90 507.81 - 456.61 682.91 318.04 1.58 5603 9.27 319.23 5517.00 693.28 515.63 - 463.45 693.29 318.05 0.72 5667 8.08 323.17 5580.27 702.92 523.13 - 469.51 702.93 318.09 2.08 5730 6.59 325.17 5642.75 710.92 529.65 - 474.23 710.93 318.16 2.40 5792 5.55 327.47 5704.40 717.42 535.09 - 477.87 717.42 318.23 1.72 5856 4.98 329.93 5768.13 723.19 540.10 - 480.93 723.19 318.32 0.95 5918 4.15 332.09 5829.93 728.01 544.41 - 483.34 728.01 318.40 1.37 5982 3.09 337.31 5893.81 731.89 548.05 - 485.09 731.89 318.49 1.73 6045 2.24 333.71 5956.74 734.69 550.72 - 486.29 734.69 318.56 1.37 6109 1.17 339.25 6020.71 736.50 552.45 - 487.07 736.51 318.60 1.69 6172 0.65 005.19 6083.70 737.35 553.41 - 487.27 737.36 318.64 1.03 6235 0.50 337.22 6146.70 373.85 554.02 - 487.34 373.86 318.66 0.50 6298 0.43 339.48 6209.69 738.34 554.50 - 487.53 738.34 318.68 0.11 6360 0.47 331.44 6271.69 738.80 554.94 - 487.73 738.81 318.69 0.12 6422 0.39 338.56 6333.69 739.25 555.36 - 487.93 739.26 318.70 0.15 6486 0.50 347.31 6397.69 739.69 555.83 - 488.07 739.71 318.71 0.20 6549 0.62 344.75 6460.69 740.24 556.43 - 488.22 740.25 318.74 0.19 6612 0.65 348.77 6523.68 740.85 557.11 - 488.38 740.87 318.76 0.09 6675 0.68 353.97 6586.68 741.47 557.83 - 488.49 741.48 318.79 0.11 6738 0.80 007.16 6649.67 742.06 558.64 - 488.48 742.08 318.83 0.33 6802 0.770 014.20 6713.67 742.60 559.50 - 488.32 742.62 318.89 0.16 6866 0.72 011.91 6777.66 743.08 560.31 - 488.13 743.11 318.94 0.09 6928 0.61 001.29 6839.66 743.55 561.02 - 488.04 743.59 318.98 0.27 6981 0.80 008.88 6892.65 743.99 561.67 - 487.98 744.04 319.02 0.40 Ell EPOCH 21 • • • MARATHON OIL COMPANY KBU 41 -18X Measured Rectangular Rectangular Depth Inclination Azimuth TVD Vertical Coordinate Coordinate Closure Closure DLS Section Azimuth ( +) N/S ( -) ( +) E/W ( -) (ft) (deg) (deg) (ft ) (ft) (ft) (ft ) (ft) (deg) ( deg /100ft ) 7054 0.71 018.98 6965.65 744.54 562.60 - 487.75 744.59 319.08 0.22 7117 0.55 015.31 7028.64 744.90 563.26 - 487.54 744.96 319.12 0.26 7180 0.72 007.74 7091.64 745.32 563.94 - 487.41 745.39 319.16 0.30 7243 0.63 010.32 7154.63 745.79 564.68 - 487.29 745.87 319.21 0.15 7306 0.69 004.42 7217.63 746.27 565.40 - 487.20 746.35 319.25 0.14 7369 0.74 359.44 7280.62 746.84 566.18 - 487.18 746.93 319.29 0.13 7432 0.74 001.13 7343.62 747.44 566.99 - 487.17 747.54 319.33 0.03 7495 0.79 358.87 7406.61 748.07 567.84 - 487.17 748.18 319.37 0.09 7558 0.75 346.12 7469.61 748.77 568.67 - 487.28 748.89 319.41 0.28 7622 0.73 346.62 7533.60 749.50 569.47 - 487.48 749.62 319.44 0.03 7685 0.93 352.99 7596.60 750.27 570.37 - 487.63 750.41 319.47 0.35 7748 0.98 351.51 7659.59 751.14 571.41 - 487.77 751.29 319.51 0.09 7812 0.98 351.83 7723.58 752.06 572.49 - 487.93 752.22 319.56 0.01 7875 1.01 358.15 7786.57 752.94 573.58 - 488.03 753.11 319.61 0.18 7937 1.16 355.69 7848.56 753.85 574.75 - 488.09 754.04 319.66 0.25 8002 1.09 339.60 7913.54 754.95 575.99 - 488.36 755.15 319.71 0.50 8127 1.29 003.58 8038.52 757.05 578.51 - 488.68 757.29 319.81 0.43 8254 1.23 347.90 8165.49 759.25 581.27 - 488.88 759.52 319.93 0.27 8380 1.33 002.29 8291.46 761.48 584.05 - 489.10 761.80 320.06 0.27 8505 1.19 001.26 8416.43 763.47 586.80 - 489.02 763.85 320.19 0.11 8631 1.12 359.74 8542.40 765.36 589.34 - 488.99 765.79 320.32 0.06 8695 1.26 003.04 8606.39 766.33 590.67 -488.96 766.79 320.38 0.24 **8740 1.26 003.04 8651.38 767.03 591.66 - 488.91 767.52 320.43 0.00 * *Projected El EPOCH 22 • 1 11, • IQ MARATHON OIL COMPANY KBU 41 -18X 4.3. MUD RECORD Contractor: MI Drilling Fluids Mud Types: Spud Mud 139' - 1520'; 6% KCI Flo -Pro NT 1520' - 8740' DATE MD / TVD MW VIS PV YP GELS FL FC SOL OIL /H20 SD MBT pH AIk Cl- Ca+ 3/14/08 139 / 139 8.7 58 10 38 14/17/ 15.6 2 3.0 0/97 0.0 22.5 8.9 0.20 900 60 3/14/08 213 / 213 9.0 65 12 42 15/21/ 15.8 2 3.5 0/97 Tr 22.5 8.9 0.20 800 60 3/15/08 813 / 813 9.3 55 15 24 9/22/ 15.0 2 7.0 0/93 0.25 20.0 9.0 0.15 400 40 3/15/08 1500 / 1500 9.3 50 14 21 7/18/ 8.2 <2 7.0 0/93 0.20 20.0 9.8 0.25 300 40 3/16/08 1500 / 1500 9.4 48 15 17 6/16/ 7.0 <2 7.5 0/93 Tr 20.0 9.5 0.25 300 40 3/17/08 1500 / 1500 9.4 48 14 18 6/15/ 7.2 1 7.5 0/93 Tr 17.5 9.3 0.25 300 40 3/18/08 1520 / 1520 9.1 50 9 18 7/11/12 7.8 1 5.0 0/95 Tr 0.0 8.8 0.15 31000 80 3/18/08 1802 / 1802 9.1 54 10 21 8/13/13 7.2 1 5.0 0/95 Tr 1.0 9.2 0.25 31000 80 3/19/08 2435 / 2435 9.1 51 11 21 9/12/13 7.8 1 5.5 0/95 Tr 1.0 9.0 0.20 30000 80 3/19/08 3004 / 3001 9.0 53 11 23 9/14/14 7.8 1 5.5 0/95 Tr 1.0 9.3 0.25 31000 80 3/20/08 3572 / 3552 9.0 53 11 23 10/14/14 7.6 1 5.0 0/95 Tr 1.0 8.7 0.15 31000 60 3/20/08 4380 / 4332 9.1 53 14 21 12/15/ 6.8 1 3.5 0/97 0.10 3.5 8.7 0.10 29000 240 3/21/08 4834 / 4769 9.3 54 14 20 9/13/ 6.6 1 4.5 0/96 0.30 4.0 9.4 0.20 30000 160 3/21/08 5282 / 5200 9.3 54 15 19 9/13/ 6.5 1 4.5 0/96 0.50 4.0 9.4 0.25 30000 100 3/22/08 5475 / 5391 9.4 50 13 18 8/11/13 6.8 1 5.0 0/95 0.15 5.0 9.7 0.30 30000 80 3/23/08 5475 / 5391 9.4 50 13 18 8/11/ 6.8 1 5.0 0/95 0.15 5.0 9.7 0.30 30000 80 3/24/08 5475 / 5391 9.3 54 13 17 8/11/ 6.6 1 4.5 0/96 0.10 5.0 9.1 0.20 30000 100 3/25/08 5844 / 5755 9.3 51 13 21 10/15/18 7.1 1 /2 4.5 /96 0.2 5.0 9.5 0.3 29000 80 3/25/08 6109 / 6017 9.4 52 13 23 12/16/ 6.9 1/ 5.5 /95 0.2 5.0 9.7 0.4 32000 80 3/26/08 6767 / 6679 9.7 52 15 26 11/16/20 5.9 2/ 7.5 1/92 0.25 5.0 9.5 0.3 32000 80 3/26/08 7241 / 7253 9.9 50 16 27 12/17/ 6.0 2/ 9.0 1/91 0.25 5.0 10.0 0.45 31000 60 3/27/08 7820 / 7732 10.1 50 17 29 12/17/ 6.0 2/ 11.0 /89 0.25 5.0 9.9 0.45 32000 60 3/27/08 8740 / 8651 11.7 51 20 34 14/19/21 6.4 <2/ 15.5 /85 0.25 8.0 9.8 0.45 34000 40 3/28/08 8740 / 8651 12.1 51 23 35 12/17/19 5.3 <2/ 17 /83 0.25 7.5 9.9 0.45 32000 40 3/29/08 8740 / 8651 12.1 52 23 34 11/17/19 5.2 ,2/ 17 /83 0.25 7.5 9.9 0.45 32000 40 El EPOCH 23 i MARATHON OIL COMPANY KBU 41 -18X Contractor: MI Drilling Fluids Mud Type: 6% KCI Flo -Pro NT 1520' — 8740' DATE MD / TVD MW VIS PV YP GELS FL FC SOL OIL /H2O SD MBT pH AIk CI- Ca+ 3/30/08 8740 / 8651 12.1 61 23 33 11/17/18 5.3 <2/ 17 /83 0.25 7.5 9.8 0.4 32000 40 3/31/08 8740 / 8651 12.1 61 23 31 11/17/18 5.2 <2/ 17 /83 0.25 7.5 9.9 0.4 32000 40 4/1/08 8740 / 8651 12.1 60 23 33 11/16/17 5.3 <2/ 17 2/81 0.25 8.0 9.6 0.4 30000 40 4/2/08 8740 / 8651 12.1 62 24 32 11/16/17 5.4 <2/ 17 2/81 0.25 8.0 9.4 0.3 30000 40 4/3/08 8740 / 8651 El EPOCH 24 a • • 10 M MARATHON OIL COMPANY KBU 41 -18X 4.4. BIT RECORD BIT SIZE JETS/ AVE WOB PP NO. TYPE S/N TFA IN OUT FT HRS ROP Lo —Avg — Hi RPM Lo — Avg CONDITION — Hi 1 16 HTC 6057166 3x18 139 213 74 1.17 121.4 0.2 — 2.2 — 7.4 44 311 — 381 — NG MX -DS 1 DX 1 x16cj 471 1 16 HTC 6057166 3x18 213 1500 1287 13.92 118.7 0.2 — 5.4 — 55 649 — 1253 — 1- 1- WT- A- E- 1 -NO -TD RR1 MX-DS1DX 1x16cj 15.8 1665 2 12.25 HCC 7013741 6x13 1500 5475 3975 44.63 100.6 0.3 — 6.9 — 63 670 — 1157 — 2- 2- CT- G- X- 1 /32 -ER -TD HCM506Z 18.5 1463 3 8.5 HCC 7110657 5x15 5475 8740 3265 37.36 115.6 0.5 — 8.6 — 70 941 — 1775 1- 2- WT- A- X- 1 -NO -TD HCM506 33.3 2301 4RR 8.5 HCC T49BW 3x20 8740 8740 0 n/a n/a n/a n/a n/a NG ATMG -1 Clean out run only E II EPOCH 25 DEPTH (FT) CO W ---1 OD CT A CO N —s O O O O O O O O O 0 00 O O O O O O O O O_ O O O O O O O O 3/11/2008 • A I I f1 I I 3/12/2008 - 1 • 0 3/13/2008 • P r 3/14/2008 3/15/2008 X) rn 3/16/2008 - • C4 C4 n 3/17/2008 n 3 3/18/2008 K D 3/19/2008 - D - ° — I MIN 3/20/2008 W N O I< Z lit _ O 3/21/2008 X cn N I co /� X N V 0 0 • n 3/22/2008 • m = D > 3/23/2008 • Z m 3/24/2008 W C 3/25/2008 ! 1 3/26/2008 - W x 3/27/2008 1 I 3/28/2008 • I 3/29/2008 - • � I L 3/30/2008 - • 3/31/2008 • f f W N O 4/1/2008 • N A o z = sp O_ m - - - 0 - • 4/2/2008 • O N N 4/3/2008 • 4/4/2008 • • Marathon Oil Company EPOCH NinilchikUnit DAILY WELLSITE REPORT Ell KBU 41 -18X REPORT FOR Dan Byrd / Rowland Lawson DATE Mar 17, 2008 DEPTH 1500 PRESENT OPERATION Testing BOPE TIME 24:00 YESTERDAY 1500 24 HOUR FOOTAGE 0 CASING INFORMATION 13 3/8" @ 1485' 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 1500 / 1500 TVD MW 9.4 VIS 48 PV 14 YP 18 FL 7.2 Gels 6/15 CL- 300 FC 1 SOL 7.5 SD Tr OIL 0/93 MBL 17.5 pH 9.3 Ca+ 40 CCI MWD SUMMARY INTERVAL TO TOOLS GAS SUMMARY (units) HIGH LOW AVERAGE DITCH GAS @ @ TRIP GAS CUTTING GAS @ @ WIPER GAS CHROMATOGRAPHY (ppm) SURVEY METHANE (C -1) @ @ CONNECTION GAS HIGH ETHANE (C -2) @ @ AVG PROPANE (C -3) @ @ CURRENT BUTANE (C -4) @ @ CURRENT BACKGROUND /AVG PENTANE (C -5) @ @ HYDROCARBON SHOWS INTERVAL LITHOLOGY /REMARKS GAS DESCRIPTION LITHOLOGY PRESENT LITHOLOGY Finish circulating drill pipe clean. Blow down mud lines. Rig down kill line and 2" valve. Pull out of hole with 5" drill pipe. Lay down pup and stab -in tool. Rig down false rotary. Remove elevators. Pick up on 13 3/8" casing and remove base plate. Lay down running and handling tools. Remove and lay down mousehole. Flush stack and clean annular preventer thoroughly before nipple down. Clear and clean floor and cellar. Prepare to nipple down diverter. Unchain diverter Tine. Nipple down knife valve. Nipple down trip tank actuator, bleeder line, fill) -up line and trip tank line. Begin DAILY pumping off mud and cleaning pits. Pull all but the last 4 bolts on the stack. Make rough cut on 13 3/8" casing and remove cut section. Rig down ACTIVITY bell nipple and flow line extension. Nipple down and load off diverter stack. Remove and load off starter head and 4" valve. Spot Vetco -Gray 13 SUMMARY 3/8" slip lock connection by 13 5/8" 5M multibowl wellhead. Make cut on 20" conductor. Remove and load off cut section. Spot spacer spool. Begin mixing and building new Flo -Pro mud. Make final cut and dress 13 3/8" casing. Set multi -bowl wellhead and test to 1500psi (for 10 minutes). Nipple up BOPE. Set spool and stack. Rig up /nipple up choke and kill lines, trip tank acutuator and trip tank hoses. Chain stack and adjust turnbuckles. Prepare to test BOPs. Pull wear ring. Make up and run in test joint assembly. Set test plug. Rig up testing equipment. Attempt initial BOP test. Observe leaks at upper and lower lock downs. Tighten lock downs and restart BOP test. Leaks continue. Wait on Vetco -Gray to begin troubleshooting. Test gas alarms. EPOCH PERSONNEL ON BOARD 2 DAILY COST ML: 2500 RW: 585 REPORT BY Craig Silva • Marathon Oil Company • Kenai Gas Field DAILY WELLSITE REPORT EPOCH KBU 41 -18X REPORT FOR Dan Byrd / Rowland Lawson DATE Mar 18, 2008 DEPTH 1852 PRESENT OPERATION Drilling TIME 24:00 YESTERDAY 1500 24 HOUR FOOTAGE 352 CASING INFORMATION 13 3/8" @ 1485' DEPTH INCLINATION AZIMUTH VERTICAL DEPTH 1492 0.68 176.96 1491.87 1555 0.68 173.88 1554.87 SURVEY DATA 1681 0.83 175.16 1680.86 1745 0.95 182.18 1744.85 1872 1.04 180.43 1871.83 BIT INFORMATION INTERVAL CONDITION REASON NO. SIZE TYPE S/N JETS IN OUT FOOTAGE HOURS TIB /C PULLED 2 12.25 HCC HCM506Z 7013741 6x13 1500 352 3.27 In Hole DRILLING PARAMETERS HIGH LOW AVERAGE CURRENT AVG RATE OF PENETRATION 227.6 @ 1514 15.0 @ 1542 116.8 117.9 FT /HR SURFACE TORQUE 2177 @ 1512 1254 @ 1756 1490.5 1808.4 AMPS WEIGHT ON BIT 12 @ 1844 -4 @ 1678 4.6 6.1 KLBS ROTARY RPM 61 @ 1567 46 @ 1529 55.5 52.2 RPM PUMP PRESSURE 1272 @ 1747 670 @ 1502 1001.4 1076.7 PSI DRILLING MUD REPORT DEPTH 1802 / 1802 TVD MW 9.1 VIS 54 PV 10 YP 21 FL 7.2 Gels 8/13/13 CL- 31000 FC 1 SOL 5.0 SD Tr OIL 0/95 MBL 1.0 pH 9.2 Ca+ 80 CCI III MWD SUMMARY INTERVAL TO TOOLS GAS SUMMARY (units) HIGH LOW AVERAGE DITCH GAS 15 @ 1843.00000 0 @ 1501.00000 7.0 TRIP GAS CUTTING GAS @ @ WIPER GAS CHROMATOGRAPHY (ppm) SURVEY METHANE (C -1) 3200 @ 1843.00000 11 @ 1501.00000 1408.2 CONNECTION GAS HIGH ETHANE (C -2) @ @ AVG PROPANE (C -3) @ @ CURRENT BUTANE (C -4) @ @ CURRENT BACKGROUND /AVG 2 / 8 PENTANE (C -5) @ @ HYDROCARBON SHOWS NONE INTERVAL LITHOLOGY /REMARKS GAS DESCRIPTION LITHOLOGY PRESENT LITHOLOGY Troubleshoot and correct leaks at lockdowns. Test all BOPE (annular, upper and lower pipe rams, check valve, upper and lower Topdrive IBOPs, floor valve, dart valve, HCR, inside and outside kill valves, manual choke, blind rams, CMVs 1 -12) to 250psi Low/ 4000psi High for 5 minutes. Test accumulator. Rig down test equipment. Pull test plug. Set wear ring. Blow down lines. Rig up handling equipment for picking up 5" drill pipe. Strap, DAILY drift, pick up, make up, run in hole and then pull out of hole standing back 5" drill pipe (total of 110 joints /55 stands). Rig up and test casing to ACTIVITY 1500psi for 30 minutes. Rig down test equipment. Pick up, make up and run in hole directional tools (bit, motor, stabilizer, pony collar, MD, 2 flex SUMMARY joints, MV VD, crossover), then continue in hole with HWDP (total bottom hole assembly) to 797'. Scribe, orient and shallow test MWD. Continue running directional assembly in hole with 5" drill pipe to 1364'. Wash from 1364' and tag top of shoe tract at 1411'. Clean out cement, drill out float equipment and continue drilling out remaining shoe tract (cement, shoe, rathole) to 1500'. Drill 20' of new hole from 1500' to 1520'. Circulate bottoms up. Pump 25 bbls of water, followed by 30 bbl Hi -Vis sweep and chase with new 9.1 ppg Flo -Pro mud to displace the old spud mud. Rig up and run Formation Integrity Test to 13.0ppg EMW. Blow down choke. Begin building up Flo -Pro mud volume. Drill from 1520' to 1852'. EPOCH PERSONNEL ON BOARD 2 DAILY COST ML: 2500 RW: 585 • REPORT BY Craig Silva Marathon Oil Company EPOCH • Kenai Gas Field DAILY WELLSITE REPORT El KBU 41 -18X REPORT FOR Dan Byrd / Rowland Lawson DATE Mar 18, 2008 DEPTH 1852 PRESENT OPERATION Drilling TIME 24:00 YESTERDAY 1500 24 HOUR FOOTAGE 352 CASING INFORMATION 13 3/8" @ 1485' DEPTH INCLINATION AZIMUTH VERTICAL DEPTH 1492 0.68 176.96 1491.87 1555 0.68 173.88 1554.87 SURVEY DATA 1681 0.83 175.16 1680.86 1745 0.95 182.18 1744.85 1872 1.04 180.43 1871.83 BIT INFORMATION INTERVAL CONDITION REASON NO. SIZE TYPE S/N JETS IN OUT FOOTAGE HOURS T /B /C PULLED 2 12.25 HCC HCM506Z 7013741 6x13 1500 352 3.27 In Hole DRILLING PARAMETERS HIGH LOW AVERAGE CURRENT AVG RATE OF PENETRATION 227.6 @ 1514 15.0 @ 1542 116.8 117.9 FT /HR SURFACE TORQUE 2177 @ 1512 1254 @ 1756 1490.5 1808.4 AMPS WEIGHT ON BIT 12 @ 1844 -4 @ 1678 4.6 6.1 KLBS ROTARY RPM 61 @ 1567 46 @ 1529 55.5 52.2 RPM PUMP PRESSURE 1272 @ 1747 670 @ 1502 1001.4 1076.7 PSI DRILLING MUD REPORT DEPTH 1802 / 1802 TVD MW 9.1 VIS 54 PV 10 YP 21 FL 7.2 Gels 8/13/13 CL- 31000 FC 1 SOL 5.0 SD Tr OIL 0/95 MBL 1.0 pH 9.2 Ca+ 80 CCI III MWD SUMMARY INTERVAL TO TOOLS GAS SUMMARY (units) HIGH LOW AVERAGE DITCH GAS 15 @ 1843.00000 0 @ 1501.00000 7.0 TRIP GAS CUTTING GAS @ @ WIPER GAS CHROMATOGRAPHY (ppm) SURVEY METHANE (C -1) 3200 © 1843.00000 11 @ 1501.00000 1408.2 CONNECTION GAS HIGH ETHANE (C -2) @ @ AVG PROPANE (C -3) © @ CURRENT BUTANE (C -4) @ © CURRENT BACKGROUND /AVG 2 / 8 PENTANE (C -5) @ @ HYDROCARBON SHOWS NONE INTERVAL LITHOLOGY /REMARKS GAS DESCRIPTION LITHOLOGY PRESENT LITHOLOGY Troubleshoot and correct leaks at lockdowns. Test all BOPE (annular, upper and lower pipe rams, check valve, upper and lower Topdrive IBOPs, floor valve, dart valve, HCR, inside and outside kill valves, manual choke, blind rams, CMVs 1 -12) to 250psi Low/ 4000psi High for 5 minutes. Test accumulator. Rig down test equipment. Pull test plug. Set wear ring. Blow down lines. Rig up handling equipment for picking up 5" drill pipe. Strap, DAILY drift, pick up, make up, run in hole and then pull out of hole standing back 5" drill pipe (total of 110 joints /55 stands). Rig up and test casing to ACTIVITY 1500psi for 30 minutes. Rig down test equipment. Pick up, make up and run in hole directional tools (bit, motor, stabilizer, pony collar, M WD, 2 flex SUMMARY j oints, crossover), then continue in hole with HDP (total bottom hole assembly) to 797'. Scribe, orient and shallow test MWD. Continue running directional assembly in hole with 5" drill pipe to 1364'. Wash from 1364' and tag top of shoe tract at 1411'. Clean out cement, drill out float equipment and continue drilling out remaining shoe tract (cement, shoe, rathole) to 1500'. Drill 20' of new hole from 1500' to 1520'. Circulate bottoms up. Pump 25 bbls of water, followed by 30 bbl Hi -Vis sweep and chase with new 9.1 ppg Flo -Pro mud to displace the old spud mud. Rig up and run Formation Integrity Test to 13.Oppg EMW. Blow down choke. Begin building up Flo -Pro mud volume. Drill from 1520' to 1852'. EPOCH PERSONNEL ON BOARD 2 DAILY COST ML: 2500 RW: 585 III REPORT BY Craig Silva Marathon Oil Company Kenai Gas Field DAILY WELLSITE REPORT EPOCH KBU 41 -18X REPORT FOR Dan Byrd / Rowland Lawson DATE Mar 20, 2008 DEPTH 4462 PRESENT OPERATION Drilling TIME 24:00 YESTERDAY 3004 24 HOUR FOOTAGE 1458 CASING INFORMATION 13 3/8" @ 1485' DEPTH INCLINATION AZIMUTH VERTICAL DEPTH 3009 10.51 324.05 3005.02 SURVEY DATA 3386 15.36 318.04 3372.64 3766 14.87 318.82 3739.44 4080 15.82 317.79 4042.81 4458 15.44 319.15 4406.84 BIT INFORMATION INTERVAL CONDITION REASON NO. SIZE TYPE S/N JETS IN OUT FOOTAGE HOURS T /B /C PULLED 2 12.25 HCC HCM506Z 7013741 6x13 1500 2962 32.42 In Hole DRILLING PARAMETERS HIGH LOW AVERAGE CURRENT AVG RATE OF PENETRATION 221.7 @ 3093 20.7 @ 4033 100.9 122.0 FT /HR SURFACE TORQUE 4983 @ 3878 468 @ 3080 2579.4 3214.9 AMPS WEIGHT ON BIT 18 @ 3699 1 © 3109 6.0 9.1 KLBS ROTARY RPM 78 @ 3610 0 @ 4020 64.0 69.0 RPM PUMP PRESSURE 1363 @ 3053 900 @ 4024 1098.4 1184.3 PSI DRILLING MUD REPORT DEPTH 4380/ 4332 TVD MW 9.1 VIS 53 PV 14 YP 21 FL 6.8 Gels 12/15/ CL- 29000 FC 1 SOL 3.5 SD 0.1 OIL 0/97 MBL 3.5 pH 8.7 Ca+ 240 CCI • MWD SUMMARY INTERVAL TO TOOLS GAS SUMMARY (units) HIGH LOW AVERAGE DITCH GAS 102 @ 4362 3 @ 3579 26.4 TRIP GAS CUTTING GAS @ @ WIPER GAS 10 (3004) CHROMATOGRAPHY (ppm) SURVEY METHANE (C -1) 20400 @ 4362 602 @ 3579 5268.2 CONNECTION GAS HIGH ETHANE (C -2) @ @ AVG PROPANE (C -3) @ @ CURRENT BUTANE (C-4) @ @ CURRENT BACKGROUND /AVG 7 / 41 PENTANE (C -5) @ @ HYDROCARBON SHOWS INTERVAL LITHOLOGY /REMARKS GAS DESCRIPTION LITHOLOGY PRESENT LITHOLOGY DAILY ACTIVITY After wiper trip to 1425', continue running back in hole (from 1930') to 2941'. Wash down from 2941' to 3004' (with no fill). Drill from SUMMARY 3004' to 4462'. Note intermittent mud losses of 15 -20 bbls per hour EPOCH PERSONNEL ON BOARD 2 DAILY COST ML: 2500 RW: 585 REPORT BY Craig Silva IP • Marathon Oil Company Kenai Gas Field DAILY WELLSITE REPORT E KBU 41 -18X REPORT FOR Dan Byrd / Rowland Lawson DATE Mar 21, 2008 DEPTH 5475 PRESENT OPERATION Circulating and cleaning hole TIME 24:00 YESTERDAY 4462 24 HOUR FOOTAGE 1013 CASING INFORMATION 13 3/8" @ 1485' DEPTH INCLINATION AZIMUTH VERTICAL DEPTH 4522 15.41 317.14 4468.53 SURVEY DATA 4712 15.50 316.03 4651.63 4964 15.48 316.65 4894.52 5216 13.96 315.78 5137.86 5404 11.40 317.37 5321.21 BIT INFORMATION INTERVAL CONDITION REASON NO. SIZE TYPE S/N JETS IN OUT FOOTAGE HOURS T /B /C PULLED 2 12.25 HCC HCM506Z' 7013741 6x13 1500 3975 44.63 In Hole DRILLING PARAMETERS HIGH LOW AVERAGE CURRENT AVG RATE OF PENETRATION 158.4 @ 5024 11.5 © 5341 92.9 106.4 FT /HR SURFACE TORQUE 6349 @ 5321 472 @ Sliding 3919.4 4211.6 AMPS WEIGHT ON BIT 17 @ 4518 1 © 4836 9.4 10.3 KLBS ROTARY RPM 72 © 4830 0 © Sliding 66.7 65.3 RPM PUMP PRESSURE 1463 @ 5169 907 @ 4835 1233.6 1409.4 PSI DRILLING MUD REPORT DEPTH 5282 / 5202 TVD MW 9.3 VIS 54 PV 15 YP 19 FL 6.5 Gels 9/13/ CL- 30000 FC 1 SOL 4.5 SD 0.5 OIL 0/96 MBL 4.0 pH 9.4 Ca+ 100 CCI • MWD SUMMARY INTERVAL TO TOOLS GAS SUMMARY (units) HIGH LOW AVERAGE DITCH GAS 137 @ 5035 12 @ 5212 39.6 TRIP GAS CUTTING GAS @ @ WIPER GAS 18 (4834) CHROMATOGRAPHY (ppm) SURVEY METHANE (C -1) 27564 @ 5035 2460 @ 4848 7934.1 CONNECTION GAS HIGH ETHANE (C -2) @ @ AVG PROPANE (C -3) @ @ CURRENT BUTANE (C -4) @ @ CURRENT BACKGROUND /AVG 6 / 24 PENTANE (C -5) @ @ HYDROCARBON SHOWS INTERVAL LITHOLOGY /REMARKS GAS DESCRIPTION LITHOLOGY PRESENT LITHOLOGY Drill (rotating and sliding) from 4462' to 4834'. (Note continued intermittent losses of 15 -20 bbls per hour). Circulate bottoms up. Pump around DAILY Hi -Vis sweep with increased Safecarb. Circulate and clean hole. Pump and spot Mix II- Safecarb LCM pill near bottom. Pull out of hole from ACTIVITY 4834' to 2939' on wiper trip. Briefly service rig. Run back in hole from 2939' to 4771'. Wash down from 4771' to 4834' with no fill. Record 18 units SUMMARY of wiper gas. Drill (rotating and sliding) from 4834' to 5475'. (Note continued intermittent losses decrease to 10 -15 bbls per hour). Begin circulating bottoms up. EPOCH PERSONNEL ON BOARD 2 DAILY COST ML: 2500 RW: 585 REPORT BY Craig Silva • Marathon Oil Company • Kenai Gas Field DAILY WELLSITE REPORT EPOCH KBU 41 -18X REPORT FOR Dan Byrd / Rowland Lawson DATE Mar 22, 2008 DEPTH 5475 PRESENT OPERATION Pulling out of hole to run casing. TIME 24:00 YESTERDAY 5475 24 HOUR FOOTAGE 0 CASING INFORMATION 13 3/8" @ 1485' DEPTH INCLINATION AZIMUTH VERTICAL DEPTH SURVEY DATA 5475 (Projection) 10.32 317.37 5390.94 BIT INFORMATION INTERVAL CONDITION REASON NO. SIZE TYPE S/N JETS IN OUT FOOTAGE HOURS T /B /C PULLED 2 12.25 HCC HCM506Z 7013741 6x13 1500 3975 544.63 In Hole DRILLING PARAMETERS HIGH LOW AVERAGE CURRENT AVG RATE OF PENETRATION @ @ FT /HR SURFACE TORQUE @ @ AMPS WEIGHT ON BIT @ @ KLBS ROTARY RPM @ @ RPM PUMP PRESSURE @ @ PSI DRILLING MUD REPORT DEPTH 5475 / 5391 TVD MW 9.4 VIS 50 PV 13 YP 18 FL 6.8 Geis 8/11/13 CL- 30000 FC 1 SOL 5.0 SD 0.15 OIL 8/87 MBL 5.0 pH 9.7 Ca+ 80 CCI MWD SUMMARY INTERVAL TO TOOLS • GAS SUMMARY (units) HIGH LOW AVERAGE DITCH GAS 21 @ (first WG at 5475) 1 © pumping LCM pill 3 circ and cond TRIP GAS CUTTING GAS @ @ WIPER GAS 21(1st), 5 (2nd) 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 Circulate bottoms up. Circulate, clean and condition hole. Observe mud loss of 20 bbls per hour while circulating. Check for flow. Pull out of hole from 5475' to 1425' on wiper trip to shoe. Note during 15 bbls of mud loss during trip. Slip and cut 33' of drill line. Set and check crown- o- matic. Adjust brakes. Grease crown. Service rig and Topdrive. Run back in hole from 1425' and tag bridge at 5370'. Wash and ream through bridge from 5370' to 5380' and continue to wash down to 5475'. Circulate bottoms up. Record 21 units of wiper gas. Observe 15 bbls of mud loss by first DAILY bottoms up. Continue to circulate, clean and condition hole. Mud loss drops to 5 bbls per hour while circulating. Pull out of hole to 5330'. Pulling ACTIVITY tight initially from 5475' to 5455' and again at 5405' to 5370'. Work through tight zone from 5405' to 5370'. Run back in hole from 5339' to 5470' and SUMMARY wash last 5' to bottom at 5475'. Circulate, clean and condition hole (with negligible mud loss). Check for flow. Pull out of hole from 5475' to 4771'. Run back in hole from 4771' to 5460'. Wash down from 5460' to 5475' with no fill. Circulate bottoms up. Record 5 units of wiper gas. Continue circulate, clean and condition hole. Pump around sweep. Mud losses are less than 5 bbls per hour and negligible after pumping around sweep. Check for flow. Pull out of hole from 5475' to 4000'. Pump and spot 50 bbl LCM pill (made with 50ppb 10 -20 -250 grade Safecarb, 10ppb G -Seal, 6ppb fine and medium Mix II). Continue to pull out hole from 4000' to 1485'. Check for flow. Note approximately 2+ bbls of mud loss per hour while pulling out. Continue to pull out hole from 1485' to top of bottom hole assembly at 797'. Pull out of hole standing back HWDP and jars. EPOCH PERSONNEL ON BOARD 2 DAILY COST ML: 2500 RW: 585 REPORT BY Craig Silva III 0 Marathon Oil Company Kenai Gas Field DAILY WELLSITE REPORT EPOCH KBU 41 -18X REPORT FOR Dan Byrd / Rowland Lawson I DATE Mar 23, 2008 DEPTH 5475 PRESENT OPERATION Circulating and conditioning prior to cementing TIME 24:00 YESTERDAY 5475 24 HOUR FOOTAGE 0 CASING INFORMATION 13 3/8" @ 1485' 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 2 12.25 HCC HCM506Z 7013741 6x13 1500 5475 3975 44.63 2- 2- CT- G- X- 1 /32 -ER -TD Casing point DRILLING PARAMETERS HIGH LOW AVERAGE CURRENT AVG RATE OF PENETRATION @ @ FT /HR SURFACE TORQUE @ @ AMPS WEIGHT ON BIT @ @ KLBS ' ROTARY RPM @ @ RPM PUMP PRESSURE @ @ PSI DRILLING MUD REPORT DEPTH 5475 / 5391 TVD MW 9.4 VIS 50 PV 13 YP 18 FL 6.8 Gels 8/11/ CL- 30000 FC 1 SOL 5.0 SD 0.15 OIL 0/95 MBL 5.0 pH 9.7 Ca+ 80 CCI MWD SUMMARY INTERVAL TO TOOLS • GAS SUMMARY (units) HIGH LOW AVERAGE DITCH GAS 9 @ TG at 5458 1 @ before cementing 4 prior to cementing TRIP GAS 9 CUTTING GAS @ @ WIPER GAS CHROMATOGRAPHY (ppm) SURVEY METHANE (C -1) @ @ CONNECTION GAS HIGH ETHANE (C -2) @ @ AVG PROPANE (C-3) @ @ CURRENT BUTANE (C -4) @ @ CURRENT BACKGROUND /AVG 1 / 4 PENTANE (C -5) @ @ HYDROCARBON SHOWS INTERVAL LITHOLOGY /REMARKS GAS DESCRIPTION LITHOLOGY PRESENT LITHOLOGY Pull out of hole laying down directional assembly. Break and lay down crossover sub, NM flex joints, NM crossover, MWD collar, short NMDC, string stabilizer, mudmotor and bit. Rig down, lay down and clear handling tools. Clean rig floor and cellar. Pull wear bushing. Hold pre -job meeting on changing rams. Close blind rams. Change out upper 2 7/8" by 5 1/2" variable pipe rams to 9 5/8" casing rams. Run test plug. Pick up, make up and install test joint. Rig up test equipment. Test casing rams to 250psi Low / 3500psi High. Rig down test equipment. Pull test plug. Close annulus valve. Using single joint elevators, drift BOPs with landing joint and hanger. Mark elevation on landing joint. Move breakout tongs to driller's side and install correct tong head. Remove elevators and short bails. Install Lafleur fill -up tool. Install long bails and pick -up sling -line. Install casing elevators. Move torque tube back in derrick for clearance. Rig up and test stabbing board. Rig up Weatherford casing tongs and tall snub post. DAILY Remove rotary bushings. Rig up casing spider slips. Make up EZ -turn valve onto casing swage (to act as a safety valve), function test and record in ACTIVITY IADC, Pick up centralizers and lock rings and stage on rig floor. Tie one (red) tugger line back in derrick for picking up pipe, and the second (blue) SUMMARY tugger line back for hanging casing tongs. Hold pre job meeting with all hands on procedures and safety for running intermediate casing string. Run in hole with 9 5/8" casing as per Marathon program. Pick up and make up shoe track (shoe joint, spacer joint, float collar) and run in hole. Clean and Bakerlok casing threads on each successive shoe track joint while making them up. Circulate through shoe track and check float equipment. Resume running in hole with 9 5/8" casing as per Marathon. Attach centralizers as per tally. Fill every joint on way in. Run casing to 1452' (inside shoe). Circulate bottoms up (at 140spm, 275gpm, 375psi). Continue running in hole with 9 5 /8" casing from to 5414'. Position fill -up tool so joint can be circulated down. Open and remove spider slips. Break circulation and wash down from 5414' to landing depth of 5458'. Land hanger on load shoulder in multi -bowl wellhead. Drain stack and verify landing. Make up cementing head with top and bottom plugs pre - installed. Circulate bottoms up and continue to clean and condition clean. Record 9 units of trip gas. Hold pre -job meeting with BJ on procedures and safety for cement job. • EPOCH PERSONNEL ON BOARD 2 DAILY COST ML: 2500 RW: 585 REPORT BY Craig Silva Marathon Oil Company 411 Kenai Gas Field DAILY WELLSITE REPORT EPOCH KBU 41 -18X REPORT FOR Dan Byrd / John Nicholson DATE Mar 24, 2008 DEPTH 5475 PRESENT OPERATION Pulling out of hole after centering crown TIME 24:00 YESTERDAY 5475 24 HOUR FOOTAGE 0 CASING INFORMATION 9 5/8" @ 5458' DEPTH INCLINATION AZIMUTH VERTICAL DEPTH SURVEY DATA BIT INFORMATION INTERVAL CONDITION REASON NO. SIZE TYPE S/N JETS IN OUT FOOTAGE HOURS T /B /C PULLED 3 8.5 HCC HCM605 7110657 5x15 5475 In Hole DRILLING PARAMETERS HIGH LOW AVERAGE CURRENT AVG RATE OF PENETRATION @ @ FT /HR SURFACE TORQUE @ @ AMPS WEIGHT ON BIT @ @ KLBS ROTARY RPM @ @ RPM PUMP PRESSURE @ @ PSI DRILLING MUD REPORT DEPTH 5475 / 5391 TVD MW 9.3 VIS 54 PV 13 YP 15 FL 6.6 Gels 8/11/ CL- 30000 FC 1 SOL 4.5 SD 0.1 OIL 0/96 MBL 0.5 pH 9.1 Ca+ 100 CCI MWD SUMMARY INTERVAL TO TOOLS • GAS SUMMARY (units) HIGH LOW AVERAGE DITCH GAS 4 @ displacing at 5458 0 @ displacing 2 while circulating TRIP GAS CUTTING GAS @ @ WIPER GAS CHROMATOGRAPHY(ppm) SURVEY METHANE (C -1) @ @ CONNECTION GAS HIGH ETHANE (C -2) @ @ AVG PROPANE (C -3) a@ @ CURRENT BUTANE (C-4) @ @ CURRENT BACKGROUND /AVG N/A PENTANE (C -5) @ @ HYDROCARBON SHOWS INTERVAL LITHOLOGY /REMARKS GAS DESCRIPTION LITHOLOGY PRESENT LITHOLOGY Continue circulating through cementing head. BJ batching up cement while circulating. Blow air through cement valve and line to clear. Switch to BJ pumping unit. Pump 2 bbls of water and pressure test lines to 3000psi. Drop first (bottom) plug. Mix and pump 30.0 bbls of 10.0ppg Seal Bond sweep (using 28.64 bbls of mix water and adding 300 Ibs of Ultra Seal Plus LCM material before pumping), and follow with 168.0 bbls of batched up 10.5ppg cement slurry (281 sacks of Class G cement plus accelerator chemicals mixed with 84.68 bbls water to yield 12.658 gal /sk and 3.314 cuft/sk). Drop second (top) plug. Pump 5.0 bbls of water to kick out the top plug. Switch over to rig pumps. Displace with 402.35 bbls (8565 strokes) of mud (and 407.35 bbls total displacement). Bump plug at calculated strokes with 500psi over - pressure (and 1000psi total pressure). Bleed off. Check floats. Cement in place. Blow down and rig down BJ cementing head and cement lines. Back out and lay down landing joint. Make up 9 5/8" pack -off and run in on 1 joint of HWDP. Energize seals and test pack -off to 5000psi for 10 minutes. Remove sling line. Rig down, lay down and load DAILY off the Lafleur fill -up tool, casing elevators and long bails. Rig up short bails and drill pipe elevators. Move tong hanging sheave and hang rig tongs. ACTIVITY Offload remaining Weatherford equipment. Blow down Topdrive, mud lines and mud pumps. Lock - out -tag -out and perform service work on SUMMARY Topdrive and carrier. Change oil in #1 carrier motor. Change out upper 9 5/8" casing rams to 2 3/8" X 5 1/2" variable pipe rams. Rig down stabbing board. Clean rig floor. Run in test plug. Rig up testing equipment. Test all BOPE to 250psi Low /3500psi High for 5 minutes (annular preventer, upper pipe rams, check valve, dart valve, upper Topdrive IBOP, CMVs 1- 10- 11 -12, floor valve, lower Topdrive IBOP, outside kill valve, CMVs 6 -8- 9, inside kill valve, CMVs 2 -5 -7, HCR, manual choke CMVs 3 -4, blind rams). Do accumulator performance test. Blow down mud lines. Rig down testing equipment. Pull test plug. Install wear bushing. Prepare rig floor for picking up directional bottom hole assembly. Pick up, make up and run in hole directional assembly (8 1/2" bit, mudmotor, MWD, NM string stabilizer, short NMDC, MWD, NM crossover, 2 NMCSDPs, NM crossover, 21 joints 5" HWDP plus jars) to 794'. Surface test MWD tool. Continue running in hole with 5" drill pipe to 5336'. Level carrier to help center the crown position (and get more cleanly over the hole). Change out the Topdrive's hydraulically activated mud saver valve. Pull out of hole from 5336' (to 5084'). • EPOCH PERSONNEL ON BOARD 2 DAILY COST ML: 2500 RW: 585 REPORT BY Craig Silva Marathon Oil Company EPOCH III Kenai Gas Field KBU 41 -18X DAILY WELLSITE REPORT El I REPORT FOR Dan Byrd / John Nicholson DATE Mar 25, 2008 DEPTH 6160 PRESENT OPERATION Drilling TIME 24:00 YESTERDAY 5475 24 HOUR FOOTAGE 685 CASING INFORMATION 9 5/8" @ 5458' DEPTH INCLINATION AZIMUTH VERTICAL DEPTH 5476 10.68 316.84 5391.87 5667 8.08 323.17 5580.27 SURVEY DATA 5792 5.55 327.47 5704.40 5982 3.09 337.31 5893.81 6109 1.17 339.25 6020.71 BIT INFORMATION INTERVAL CONDITION REASON NO. SIZE TYPE S/N JETS IN OUT FOOTAGE HOURS T /B /C PULLED 3 8.5 HCC HCM605 7110657 5x15 5475 685 9.71 In Hole DRILLING PARAMETERS HIGH LOW AVERAGE CURRENT AVG RATE OF PENETRATION 168.2 @ 5503 5.2 @ 5605 103.1 137.9 FT /HR SURFACE TORQUE 6393 @ 5525 460 @ Sliding 3034.0 4433.1 AMPS , WEIGHT ON BIT 23 @ 5849 2 © 6095 8.8 13.1 KLBS ROTARY RPM 77 @ 5653 0 @ Sliding 51.4 64.7 RPM PUMP PRESSURE 1647 @ 5594 941 @ 5478 1458.9 1610.0 PSI DRILLING MUD REPORT DEPTH 6109 / 6021 TVD MW 9.4 VIS 52 PV 13 YP 23 FL 6.9 Gels 12/16 CL- 32000 FC 1 SOL 5.5 SD 0.2 OIL 0/95 MBL 5.0 pH 9.7 Ca+ 80 CCI MWD SUMMARY • INTERVAL TO TOOLS GAS SUMMARY (units) HIGH LOW AVERAGE DITCH GAS 283 @ 6086 2 @ 5507 21.5 TRIP GAS CUTTING GAS @ @ WIPER GAS CHROMATOGRAPHY (ppm) SURVEY METHANE (C -1) 56569 © 6086 415 @ 5507 4286.6 CONNECTION GAS HIGH ETHANE (C -2) 48 @ 6086 0 @ 0,6 AVG PROPANE (C -3) 12 @ 6086 0 @ 0,1 CURRENT BUTANE (C-4) @ @ CURRENT BACKGROUND /AVG 12 / 22 PENTANE (C -5) @ @ HYDROCARBON Two small sand intervals with gas over 100 units. SHOWS INTERVAL LITHOLOGY /REMARKS GAS DESCRIPTION 5695 -5702; 6080- Dominant tuffaceous clay and volcanic ash supported All maximums from 6080+ Sd /SS/Tuff SS = med It gry to med gry, fine to med; 6090 ss; locally "cleans up" and cemented by intergrain interval; 283u Max; 244 avg common thin localized conglomeratic zones with coarse calcite; many grain support variations; mostly thru intvl; 25u before /after; to cgl grains; mod sorted in fn to crse range; ang -sbrd; appears poor Porosity due to volume of intergrain Minor heavy gases present. various mtrx -grain spprt; mostly supprt by volcanic ash clay, derived seds; sublithic aren to comp gywke; poor vis Por. LITHOLOGY Major Sand /Sandstone, Tuffaceous Claystone, Tuffaceous Siltstone. Minor Tuffaceous Sandstone, Conglomeratic Sandstone, Carbonaceous Mudrocks. PRESENT TUFFACEOUS CLAYSTONE TUFFACEOUS SILTSTONE SAND /SANDSTONE LITHOLOGY Continue pulling out of hole (from 5084') to top of bottom hole assembly at 794' standing back pipe in the derrick. Prepare to pick up drill pipe off of the pipe rack. Pick up, make up and run in hole with 5" drill pipe from pipe rack to 2622' (after making up to last joint of HWDP). Test casing to DAILY 1500psi for 30 minutes. Continue to pick up, make up and run in hole 5" drill pipe to plug on top of float collar at 5372'. Treat drilling mud in pits ACTIVITY while picking up drill pipe. Prepare to start adding new batches of mud. Drill out plug, float collar and remaining shoe tract (cement, shoe, rathole) SUMMARY to 5475'. Drill 20' of new hole from 5475' to 5495'. Circulate bottoms up and continue to circulate hole clean. Condition mud by largely replacing old mud in hole with treated mud. Perform Leak Off Test to 14.4 EMW (9.3mw, 1440psi, 5390 tvd). Blow down choke manifold, kill lines and choke lines. Drill (rotating and sliding) from 5495' to 6160'. • EPOCH PERSONNEL ON BOARD 4 DAILY COST ML: 3275 RW: 585 Marathon Oil Company al Kenai Gas Field DAILY WELLSITE REPORT EPOCH KBU 41 -16X REPORT FOR Mitch Burns / John Nicholson DATE Mar 26, 2008 DEPTH 7612 PRESENT OPERATION Drilling TIME 24:00 YESTERDAY 6160 24 HOUR FOOTAGE 1452 CASING INFORMATION 9 5/8" @ 5458' DEPTH INCLINATION AZIMUTH VERTICAL DEPTH 6172 0.65 005.19 608310 6549 0.62 344.75 6460.69 SURVEY DATA 6928 0.61 001.29 6839.66 7306 0.69 004.42 7217.63 7622 0.73 346.62 7533.60 BIT INFORMATION INTERVAL CONDITION REASON NO. SIZE TYPE S/N JETS IN OUT FOOTAGE HOURS T /B /C PULLED 2 8.5 HCC HCM605 7110657 5x15 5475 2137 23.20 In Hole DRILLING PARAMETERS HIGH LOW AVERAGE CURRENT AVG RATE OF PENETRATION 180.7 @ 6605 12.2 @ 6165 123.5 72.1 FT /HR SURFACE TORQUE 6360 @ 7180 486 @ Sliding 4360.0 4241.2 AMPS WEIGHT ON BIT 25.9 © 6540 1.6 @ 7358 7.9 7.4 KLBS ROTARY RPM 79 @ 7551 0 @ Sliding 68.7 66.8 RPM PUMP PRESSURE 1972 @ 7391 1298 @ 6180 1740.9 1756.8 PSI DRILLING MUD REPORT DEPTH 7241 / 7153 ND MW 9.9 VIS 50 PV 16 YP 27 FL 6.0 Gels 12/17/ CL- 31000 FC 2 SOL 9.0 SD 0.25 OIL 1/91 MBL 5.0 pH 10.0 Ca+ 60 CCI 0 MWD SUMMARY INTERVAL TO TOOLS GAS SUMMARY (units) HIGH LOW AVERAGE DITCH GAS 388 @ 7005.00000 11 @ 6181.00000 106.7 TRIP GAS CUTTING GAS @ @ WIPER GAS 62 CHROMATOGRAPHY (ppm) SURVEY METHANE (C -1) 79051 @ 7005.00000 2337 @ 6181.00000 21271.0 CONNECTION GAS HIGH ETHANE (C -2) 82 @ 6951.00000 0 @ 12.7 AVG PROPANE (C -3) 33 @ 7303.00000 0 © 2.2 CURRENT BUTANE (C -4) 3 @ 6269.00000 0 @ 0.1 CURRENT BACKGROUND /AVG 20 / 95 PENTANE (C -5) @ @ HYDROCARBON Many sand intervals with gas over 100 units. Probable wide range of shows from very poor to fair to good SHOWS INTERVAL LITHOLOGY /REMARKS GAS DESCRIPTION At least 37 intervals Sand is disaggregated, matrix supported and Max 388; avr in zones 180; Sand /SS/Tuffaceous SS =1t gray -It med gry; fn -med; over 100 units. grain supported. Vis Por ranges from very poor to before and after baseline gas mod -m w srtd; ang -sbrd; many modes of support; good. avg is 30 units some good vis Por. LITHOLOGY Major Tuffaceous Sandstone, Sand /Sandstone, Tuffaceous Claystone, Tuffaceous Siltstone, Volcanic Ash. Minor Coal /Carbonaceous Shale, Calcareous Tuff, Conglomeratic Sand, Conglomerate. PRESENT TUFFACEOUS SANDSTONE LITHOLOGY DAILY ACTIVITY Drill from 6160' to 7042'. Circulate bottoms up. Pull out of hole from 7042' to 6349' on wiper trip. Run back in hole from 6349' to 6979'. SUMMARY Wash down from 6979' to 7042'. Record 62 units of wiper gas. Drill from 7042' to 7612'. EPOCH PERSONNEL ON BOARD 4 DAILY COST ML: 3275 RW: 585 REPORT BY Craig Silva 1 ill Marathon Oil Company EPOCH Kenai Gas Field DAILY WELLSITE REPORT Ell KBU 41 -18X REPORT FOR Mitch Burns / John Nicholson DATE Mar 27, 2008 DEPTH 8740 PRESENT OPERATION Circulating at 8740' (TD) before wiper trip TIME 24:00 YESTERDAY 7612 24 HOUR FOOTAGE 1128 CASING INFORMATION 9 5/8" @ 5458' DEPTH INCLINATION AZIMUTH VERTICAL DEPTH 7685 0.93 352.99 7596.60 7748 0.98 351.51 7659.59 SURVEY DATA 7812 0.98 351.83 7723.58 7875 1.01 358.15 7786.57 7937 1.16 355.69 7848.56 BIT INFORMATION INTERVAL CONDITION REASON NO. SIZE TYPE S/N JETS IN OUT FOOTAGE HOURS T /B /C PULLED 3 8.5 HCC HCM605 7110657 5x15 5475 3265 37.36 In Hole DRILLING PARAMETERS HIGH LOW AVERAGE CURRENT AVG RATE OF PENETRATION 186.3 @ 7936 6.3 @ 8444 113.1 100.4 FT /HR SURFACE TORQUE 6947 @ 8071 3742 @ 7645 5012.8 5883.9 AMPS WEIGHT ON BIT 33 @ 8305 3 @ 8209 9.5 13.8 KLBS ROTARY RPM 79 @ 8117 54 @ 7732 68.8 69.5 RPM PUMP PRESSURE 2301 @ 8474 1698 © 7674 2013.2 1959.1 PSI DRILLING MUD REPORT DEPTH 8740 / 8651 TVD MW 10.8 VIS 51 PV 18 YP 34 FL 6.3 Gels 15/21/ CL- 35000 FC 2 SOL 13.0 SD 0.25 OIL 0/87 MBL 6.0 pH 9.7 Ca+ 60 CCI ii MWD SUMMARY INTERVAL TO TOOLS GAS SUMMARY (units) HIGH LOW AVERAGE DITCH GAS 461 @ 8175 8 @ 8464 95.4 TRIP GAS CUTTING GAS @ @ WIPER GAS CHROMATOGRAPHY (ppm) SURVEY METHANE (C -1) 91163 @ 8175 1694 @ 8464 18953.5 CONNECTION GAS HIGH ETHANE (C -2) 113 @ 8692 0 @ 13.7 AVG PROPANE (C -3) 36 @ 8175 0 @ 3.2 CURRENT BUTANE (C -4) 4 @ 8701 0 @ 0.3 CURRENT BACKGROUND /AVG 50 / 88 PENTANE (C -5) © © HYDROCARBON Many sand intervals with gas over 100 units. Gas shows range from poor to good. SHOWS INTERVAL LITHOLOGY /REMARKS GAS DESCRIPTION Atleast 25 sand intervals Wide range of sand /sandstone types; disaggregated, Max 394u, ovrall avg in all sand Sand /SS/Tuff SS = v It gry-It med gry, fn- with gas over 100 units. matrix supported and grain supported. Visible zones is 190 units; before /after conglomeratic, mod -mod w srtd, ang -rdd, porosity ranges from very poor to good. baseline gas ranges 30 -50 units. wide range of gr spprt; poor to good visible Por. LITHOLOGY Major Tuffaceous Sandstone, Sand /Sandstone, Tuffaceous Claystone, Tuffaceous Siltstone, Volcanic Ash. Minor Coal /Carbonaceous Shale, Conglomeratic Sand /Conglomerate, Calcareous Tuff, Carbonaceous Tuffaceous Mudrocks PRESENT TUFFACEOUS SANDSTONE SAND /SANDSTONE COAL LITHOLOGY DAILY Drill from 7612' to 8115'. Troubleshoot MWD tool signal problem. Circulate bottoms up and continue to circulate and condition hole while ACTIVITY attempting to restart MWD signal. Make decision to continue drilling ahead without real time survey information. Drill from 8115' to 8740'. SUMMARY Circulate bottoms up and continue to circulate, clean and condition hole prior to wiper trip. Raise mud weight throughout the past 24 hours fof drilling rom 9.9 ppg to 11.7 ppg. EPOCH PERSONNEL ON BOARD 4 DAILY COST ML: 3275 RW: 585 • REPORT BY Craig Silva • Marathon Oil Company (� Kenai Gas Field DAILY WELLSITE REPORT EPOCH KBU 41 -18X REPORT FOR Mitch Burns / John Nicholson DATE Mar 28, 2008 DEPTH 8740 PRESENT OPERATION Pulling out of hole to wireline log TIME 24:00 YESTERDAY 8740 24 HOUR FOOTAGE 0 CASING INFORMATION 9 5/8" @ 5458' DEPTH INCLINATION AZIMUTH VERTICAL DEPTH SURVEY DATA BIT INFORMATION INTERVAL CONDITION REASON NO. SIZE TYPE S/N JETS IN OUT FOOTAGE HOURS T /B /C PULLED 3 8.5 HCC HCM605 7110657 5x15 5475 8740 3265 37.36 1- 2- WT- A- X- 1 -NO -TD TD of well 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 8740 / 8651 TVD MW 12.1 VIS 51 PV 23 YP 35 FL 5.3 Gels 12/17/19 CL- 32000 FC 1 SOL 17 SD 0.25 OIL 0/83 MBL 7.5 pH 9.9 Ca+ 40 CCI MWD SUMMARY INTERVAL TO TOOLS III GAS SUMMARY (units) HIGH LOW AVERAGE DITCH GAS 2000 @ 8740 (1st WG) 2 @ before POOH N/A TRIP GAS CUTTING GAS @ @ WIPER GAS 2000, 221 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 to circulate, clean and condition hole prior to wiper trip. Increase mud weight from 11.1 ppg to 11.6ppg while circulating. Check for flow. Pull out of hole to 7800' on 15 stand wiper trip. (Pull through tight spot at 7870'). Run back in hole from 7800' to 8684'. Wash down from 8684' to 8740'. Clean out 6' of fill on bottom. Begin circulating bottoms up. Record 2000 units of wiper gas (800 strokes short of bottoms up). Close choke. DAILY Circulate through gas buster. Circulate gas down to 180 units. Open choke and continue circulating through flow line. Begin increasing mud weight ACTIVITY while circulating. Circulate gas down to 100 units (over next 3200 strokes) before first batch of heavier mud "turns corner ". Circulate and increase SUMMARY mud weight from 11.6ppg to 12.1 +ppg. Check for flow. Pull out of hole on wiper trip from 8740' to 5403' (just inside shoe). Encounter 45 minor tight spots on way out that require circulating, backreaming - reaming and working through. Service carrier and Topdrive. Run back in hole from 5403' to 8682'. Wash and ream from 8682' to 8740'. Clean out 10' of fill on bottom. Circulate bottoms up. Record 222 units of wiper gas. Continue to circulate, clean and condition hole. Check for flow. Pump dry job. Pull out of hole (clean) from 8740' to top of HWDP at 794'. EPOCH PERSONNEL ON BOARD 4 DAILY COST ML: 3275 RW: 585 REPORT BY Craig Silva • Marathon Oil Company al Kenai Gas Field DAILY WELLSITE REPORT E KBU 41 -18X REPORT FOR Mitch Burns / John Nicholson DATE Mar 29, 2008 DEPTH 8740 PRESENT OPERATION Preparing to run MFT wireline pressure log downhole TIME 24:00 YESTERDAY 8740 24 HOUR FOOTAGE 0 CASING INFORMATION 9 5/8" @ 5458' 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 @ @ FT /HR SURFACE TORQUE @ @ AMPS WEIGHT ON BIT @ @ KLBS ROTARY RPM @ @ RPM PUMP PRESSURE @ @ PSI DRILLING MUD REPORT DEPTH 8740 / 8651 TVD MW 12.1 VIS 52 PV 23 YP 34 FL 5.2 Gels 11/17/19 CL- 32000 FC 2 SOL 17.0 SD 0.25 OIL 0/83 MBL 7.5 pH 9.9 Ca+ 40 CCI MWD SUMMARY INTERVAL TO TOOLS GAS SUMMARY (units) HIGH LOW AVERAGE 6 DITCH GAS 1004 @ TG on pre -MFT pipe run 3 @ at pump shut down 220 on pre -MFT circulating TRIP GAS 1004 CUTTING GAS @ @ WIPER GAS CHROMATOGRAPHY (ppm) SURVEY METHANE (C -1) @ @ CONNECTION GAS HIGH ETHANE (C -2) @ @ AVG PROPANE (C -3) @ @ CURRENT BUTANE (C -4) @ @ CURRENT BACKGROUND /AVG N/A PENTANE (C -5) @ @ HYDROCARBON SHOWS INTERVAL LITHOLOGY /REMARKS GAS DESCRIPTION LITHOLOGY PRESENT LITHOLOGY Pull out of hole standing back HWDP and jars. Pull out of hole laying down directional assembly (crossover sub, NM flex joints, NM crossover, MWD collar, short NMDC, string stabilizer, mudmotor and bit). Plug into MWD tool and dump memory before laying down. Unable to recover survey data past time of initial tool failure so attempt second dump of MWD and again fail to recover post - failure data. Finish breaking and laying down lower directional assembly. Lay down and clear handling tools. Service Topdrive. Clear and clean rig floor. Lay down handling tools. Hold pre -job meeting with Weatherford Wireline Services' loggers on procedures and safety for handling wireline logging tools. Hang sheaves and rig up DAILY Weatherford's wireline running equipment. Pick up, make up and run in hole with Quad -Combo logging assembly. Load sources for neutron tools. ACTIVITY Run in hole to near bottom (8733'). Log up from with Quad -Combo assembly from 8733' to 3000'. Pull out of hole. Unload sources. Break and lay SUMMARY down logging tools. Rig down sheaves and wireline running equipment. Pick up and make up mule shoe to first stand of open -ended 5" HWDP. Run in hole with 5" HWDP and 5" drill pipe to 5434'. Cut and slip 148' of drill line. Reset and check crown -o- matic. Continue running in hole with drill pipe from 5434' to 8725'. Break circulation, begin circulating bottoms up, and then pull back uphole to 8600'. Circulate bottoms up. Record 1004 units of trip gas. Observe many large fragments of coal and other rocks with trip returns. Continue to circulate until hole thoroughly clean. Pull up to 8521'. Hold pre -job meeting with Weatherford Wireline Services' loggers on procedures and safety for handling wireline logging tools. Rig up pump in sub, floor safety valve and packoff (with pipe set at 8521'). Hang sheaves and rig up Weatherford's wireline running equipment. Pick up, make up and run in hole MFT logging assembly inside the 5" drill pipe. EPOCH PERSONNEL ON BOARD 3 DAILY COST ML: 2500 RW: 585 Consulting: 1300 REPORT BY Craig Silva Marathon Oil Company • Kenai Gas Field DAILY WELLSITE REPORT EPOCH KBU 41 -18X REPORT FOR Mitch Burns / John Nicholson DATE Mar 30, 2008 DEPTH 8740 PRESENT OPERATION Wireline logging TIME 24:00 YESTERDAY 8740 24 HOUR FOOTAGE 0 CASING INFORMATION 9 5/8" @ 5458" 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 8740 / 8651 ND MW 12.1 VIS 61 PV 23 YP 33 FL 5.3 Gels 11/17/18 CL- 32000 FC 2 SOL 17.0 SD 0.25 OIL 0/83 MBL 7.5 pH 9.8 Ca+ 40 CCI MWD SUMMARY INTERVAL TO TOOLS le GAS SUMMARY (units) HIGH LOW AVERAGE DITCH GAS 30 @ brief circ to clear possible pipe obstruction 2 @ during brief circ 5 during brief circ TRIP GAS CUTTING GAS @ @ WIPER GAS CHROMATOGRAPHY (ppm) SURVEY METHANE (C -1) @ @ CONNECTION GAS HIGH ETHANE (C -2) @ @ AVG PROPANE (C -3) @ @ CURRENT BUTANE (C -4) © @ CURRENT BACKGROUND /AVG N/A PENTANE (C -5) @ @ HYDROCARBON SHOWS INTERVAL LITHOLOGY /REMARKS GAS DESCRIPTION LITHOLOGY PRESENT LITHOLOGY Run downhole inside 5" drillpipe and HWDP with Weatherford Wireline Services' MFT (pressure sampling) logging assembly, past the muleshoe set at 8521', and into open hole. Continue downhole and make logging depth adjustment with gamma log. Log up with MFT formation tester, attempting pressure points from 8631' to 8418'. Note that all tests were either bleeding to hydrostatic, plugged, tight, leaking off due to seal failure, anomalously reading above hydrostatic or questionable in some other way. Pull back up into drill pipe at 7800' and function test calipers. Note anomalous surge readings above hydrostatic before apparently stabilizing. Run back down into open hole and log up with MFT formation tester, attempting pressure points from 8629' to 8598'. Repeat very similar failed tests as previous run. Pull out of hole with MFT assembly. Inspect logging assembly. Clean logging tools, clean screen, change o- rings, make small torque adjustments at connectors, wash out bowsprings and function test at surface. Run back in hole through drill pipe as before. Function test logging tool in drill pipe before re- entering open hole. Run to previous start point. Log up (and down) with MFT formation tester, successfully taking pressure points (when seal could be maintained) from 8631' to 8547'. Pull DAILY out of hole with MFT assembly. Handle and hang wireline assembly in derrick. Move and hang aside sheaves and topside wireline equipment. Rig ACTIVITY down pack -off, floor valve and pump -in sub and secure on rig floor. Pull 5" drill pipe out of hole from 8521' to 7134'. Rig up pump in sub, floor safety SUMMARY valve and packoff. Re -hang sheaves and rig up WWS wireline running equipment. Un -hang MFT logging assembly and prepare to run back in hole. Run the MFT assembly down pipe, through the mule shoe at 7134' and down hole to 7709'. Log up with MFT formation tester, successfully taking pressure points from 7709' to 7334'. Observe severe drag as MFT assembly is being pulled up from 7334' to last 2 test points in stage (7207', 7197'). Keep pulling into drill pipe. Attempt to go back down, but unable move pipe downward. Appears that an obstruction within the open -ended is drill pipe is preventing the logging assembly from sliding back down. Pull the MFT assembly out of hole with some difficulty all the way to surface. Handle and inspect logging tools and discover damage to extend arm caliper and sensor module of the MFT tool. One of the arm's protector plates was missing, and the sensor instrument was damaged. Replace, repair and function test all missing and damaged parts. Rig up pump in head and 2" line to pump -in sub. Pump to clear out the broken off and potentially wedged -in MFT caliper shield. Rig down the pump -in head and line. Prepare rig floor to run the repaired MFT assembly back in hole. Run the MFT assembly down pipe, through the mule shoe at 7134' and down hole to 7207'. Log up with MFT formation tester, successfully taking pressure points from 7207' to 7195'. • EPOCH PERSONNEL ON BOARD 3 DAILY COST ML: 2500 RW: 585 Consulting: 1300 Marathon Oil Company Kenai Gas Field DAILY WELLSITE REPORT EPOCH KBU 41 -18X REPORT FOR Mitch Burns ( John Nicholson DATE Mar 31, 2008 DEPTH 8740 PRESENT OPERATION Preparing to pull out of hole with muleshoe TIME 24:00 YESTERDAY 8740 24 HOUR FOOTAGE 0 CASING INFORMATION 9 5/8" @ 5458' 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 8740 / 8651 TVD MW 12.1 VIS 61 PV 23 YP 31 FL 5.2 Gels 11/17/18 CL- 32000 FC 2 SOL 17.0 SD 0.25 OIL 0/83 MBL 7.5 pH 9.9 Ca+ 40 CCI MWD SUMMARY INTERVAL TO TOOLS GAS SUMMARY (units) HIGH LOW AVERAGE • DITCH GAS 1205 @ WG at 8725 1 @ Brief circ to free pipe 225 Clean out run at 8725 TRIP GAS CUTTING GAS @ @ WIPER GAS 1205 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 . Finish taking pressure point at 7195'. Pull out of hole with MFT logging assembly. (Pull slowly through muleshoe to avoid potential damage to tester). Lay down wireline assembly on catwalk. Rig down sheaves, topside wireline equipment, pack -off, floor valve and pump -in sub and secure on rig floor. Run in hole with 5" drill pipe from 7134' to 8725'. Circulate bottoms up. Record 1205 units wiper gas. Circulate out high gas. Clean and condition hole. Observe large chunks of coal cuttings over shakers during high gas, Circulate gas down to 6 units. Check for flow. Pump dry job. Fill trip tank. Pull 5" drill pipe out of hole from 8725', locally pulling 25K over, and set muleshoe at 6000'. Pick up, rig up, re- install, and reset sheaves, topside wireline equipment, pack -off, floor valve and pump -in sub. Pick up off catwalk, prep and run MFT logging assembly back in hole through 5" drill pipe as before. Function test logging tool in drill pipe before re- entering open hole. Run the MFT assembly through the mule shoe at 6000' and down hole to 7023'. Log up with MFT formation tester, successfully taking pressure points from 7023' to 6613', Unable to pull off point at 6613' at 12:00 hours. (Note top of tool assembly at 6582'). Unable to work back down. Pull to 5200psi maximum (75% of line connection strength) on initial try and hold at 5000- 5200psi. Briefly slack down tension to 2000psi and open calipers to try pushing off logging assembly. Repeat process of holding at maximum pull, slacking down tension and open calipers 2 more times without success. Continue holding at constant maximum allowed DAILY tension (5200- 5400psi) for 2+ hours while arranging fishing operations. Note expectations for pulling stuck tools free are greatly diminished beyond ACTIVITY the first 30 minutes of constant tension, but still possible that tool would come free. Fishing tools and personnel arrive on location. Hold meeting with SUMMARY Weatherford wireline hands and Baker fishing hands on procedures and safety for fishing operations. All operations to follow instruction of fishing hand. Pick up all needed fishing tools on rig floor. Organize remaining fishing tools next to catwalk, Rig down pump in sub, floor valve, and pack -off. Reset and secure top sheave high in derrick. Mount T -bar over drill pipe and clamp and secure wireline. Slack off at drum and remove pull tension on wireline. Cut wireline and install quick - connect socket connectors on cut ends. Make up weight bars to be joined to the connectors. Thread line up through upper sheave, reconnect connectors and weight bars, pull back with drum to lift T -bar off pipe and test the joined connections to maximum pull tension. Test good. Slack off and disconnect line ends. Thread line through first open ended stand to be run in, re- attach at connectors and weight bars, remove T -bar and attempt strip in hole over wireline with the drill pipe. Unable to strip down because pipe is stuck at 6001'. Reverse connection procedures to T -bar support. Pick up special wireline circulating sub with intemal mounting plate, thread wireline through, make up sub to drill pipe, tension up -slack down - tension up through -pipe end of wireline and secure to plate. Pick up and kelly up next IP stand of drill pipe with Topdrive and make connection. Circulate through pipe at 2.8 bpm while putting on 2 rounds torque. Circulate for 8 minutes and free up pipe with 165K up weight and 125K down weight. Break and stand back kelly stand. Reverse procedure for installing circulating sub, set T- bar again and lay down sub. Pick up first (kelly stand), repeat wireline thread - through, bar connections, fast connections, connection test, T -bar di removal, pipe make -up /torque -up, and begin stripping in hole, very carefully sliding drill pipe down the wire while maintaining minimum 1000 lbs and maximum 2500 lbs tension on the wireline while it is alternately fed out and drawn back on the drum. Continue strip -in procedures and detect wireline and logging assembly quickly break free only 2 1/2 stands in at estimated 6158'. Continue sliding down third stand. T -bar wire to drill pipe. Slack off, feed out extra wire from drum, cut off socket connectors and weight bar, tie the loose sections of cut wire from the drill pipe side and the drum side into a butterfly knot, tape up the long excess strands from the knot to their feed wires with electrical tape to form single tight solid line, feed the now rejoined line past the lower sheave to prevent binding and spool the rejoined line back onto the drum. Reposition the sheaves to prevent the wireline from rubbing and abrading to hard on the drill pipe when it is pulled through the open box end. Pull and restore tension to the line and lift off the T -bar and safety plate from the pipe end. Remove the T -bar and begin slowly pulling the logging assembly to the surface. Raise the upper sheave with elevators to provide maximum clearance for the wireline. Pull logging assembly slowly back up inside the drill pipe. Re- install the pack -off and floor valve. Pull the MFT assembly out of the hole. Rig down the pack -off and floor valve. Lay down the logging tools. Rig down and lay down the sheaves and remaining wireline running equipment. Clear and clean rig floor. Prepare to pull out of hole with 5" drill pipe. EPOCH PERSONNEL ON BOARD 3 DAILY COST ML: 2500 RW: 585 Consulting: 1300 REPORT BY Craig Silva Marathon Oil Company (� III Kenai Gas Field DAILY WELLSITE REPORT EPOCH KBU 41 -18X REPORT FOR Mitch Burns / Rowland Lawson DATE April 01, 2008 DEPTH 8740 PRESENT OPERATION Pulling out of hole laying down 5" drill pipe TIME 24:00 YESTERDAY 8740 24 HOUR FOOTAGE 0 CASING INFORMATION 9 5/8" @ 5458' DEPTH INCLINATION AZIMUTH VERTICAL DEPTH 8002 1.09 339.60 7913.54 8254 1.23 347.90 8165.49 SURVEY DATA 8380 1.33 002.29 8291.46 8631 1.12 359.74 8542.40 8740 (Projection) 1.26 3.04 8651.38 BIT INFORMATION INTERVAL CONDITION REASON NO. SIZE TYPE S/N JETS IN OUT FOOTAGE HOURS T /B /C PULLED 4RR 8.5 HCC ATMG -1 T49BW 3x20 8740 8740 0 n/a NG Clean out run only DRILLING PARAMETERS HIGH LOW AVERAGE CURRENT AVG RATE OF PENETRATION @ @ FT /HR SURFACE TORQUE @ @ AMPS WEIGHT ON BIT @ @ KLBS ROTARY RPM @ @ RPM PUMP PRESSURE @ @ PSI DRILLING MUD REPORT DEPTH 8740 / 8651 ND MW 12.1 VIS 60 PV 23 YP 33 FL 5.3 Gels 11/16/17 CL- 30000 FC 2 SOL 17.0 SD 0.25 OIL 2/81 MBL 8.0 pH 9.6 Ca+ 40 CCI • MWDSUMMARY INTERVAL TO TOOLS GAS SUMMARY (units) HIGH LOW AVERAGE DITCH GAS 390 @ TG at 8740' 2 @ last circ before POH 14 on last wiper trip TRIP GAS 390 CUTTING GAS @ @ WIPER GAS 38 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 Check for flow. Blow down mud lines. Pull 5" drill pipe out of hole from 6188' to 9 5/8" shoe at 5458'. Fill trip tank. Blow down mud lines. Continue pulling 5" drill pipe out of hole from 5459' to 629'. Pull 5" HWDP out of hole from 629' to surface. Break and lay down last joint of HWDP and mule shoe. Pick up, make up and run in hole combined directional and clean out run assembly (rerun mill tooth bit, bit sub, NM flex joint, MWD collar, NM crossover sub, 2 NM flex joints, crossover sub, 4 HWDP, jars, 17 HWDP) to 785'. Continue running in hole with 5" drill pipe from 785' to tight DAILY spot at 8660'. Wash ream and ream through tight spot 8660' -8665' and coal at 8704' on way to bottom at 8740'. Also observe some minor ACTIVITY differential sticking at connections. Circulate bottoms up. Record gas over 200 units for a 71 minute duration that included 390 units of trip gas. SUMMARY Observe many large cuttings chunks of coal with high gas returns (that nearly filled the cuttings tank). Continue circulating to clean and condition hole. Transfer 200 bbls of mud to Hansen Tank while circulating, and add 2% Lubetex to remaining mud system. Check for flow. Pump dry job. Pull out of hole from 8740' to 6911' on 29 stand wiper trip. Run back in hole from 6911' to 8740'. Circulate bottoms up. Record 38 units of wiper gas. Circulate, clean and condition hole. Observe significantly less coal after wiper trip than after the full trip. Check for flow. Pump dry job. Pull out of hole from 8740' to shoe at 5458'. Continue pulling out of hole from 5458' (to 1880') laying down 5" drill pipe. EPOCH PERSONNEL ON BOARD 2 DAILY COST ML: 2500 RW: 585 • REPORT BY Craig Silva Marathon Oil Company KBU 41 -18X EPOCF[ DRLY WELLSTE REPORT REPORT FOR Rowland Lawson DATE April 2, 2008 DEPTH 8740.00000 PRESENT OPERATION RIH W Escape Comp. TIME 24:00 YESTERDAY 8740.00000 24 HOUR FOOTAGE 0 CASING INFORMATION DEPTH INCLINATION AZIMUTH VERTICAL DEPTH SURVEY DATA BIT INFORMATION INTERVAL CONDITION REASON NO. SIZE TYPE S/N JETS IN OUT FOOTAGE HOURS T /B /C PULLED DRILLING PARAMETERS HIGH LOW AVERAGE CURRENT AVG RATE OF PENETRATION @ @ FT /HR SURFACE TORQUE @ @ AMPS WEIGHT ON BIT @ @ KLBS ROTARY RPM @ @ RPM PUMP PRESSURE @ @ PSI DRILLING MUD REPORT DEPTH MW 12.1 VIS 62 PV 24 YP 32 FL 5.4 Gels 11/16/17 CL- 30000 FC <2 SOL 17 SD 0.25 OIL 2/81 MBL 8 pH 9.4 Ca+ 40 CCI MWD SUMMARY INTERVAL TO TOOLS GAS SUMMARY (units) HIGH LOW AVERAGE 0 DITCH GAS 2 @ 8740 0 @ 8740 1 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 1 PENTANE (C -5) @ @ HYDROCARBON SHOWS INTERVAL LITHOLOGY /REMARKS GAS DESCRIPTION LITHOLOGY PRESENT LITHOLOGY Pre tour safety meeting, Note pre job safety meetings were held before each phase of the daily operation.. Continue laying down 5" drill pipe DAILY and BHA #4. Run into hole with 5" drill pipe from derrick to 3470' and lay down. Pull the wear ring. Clean rig floor. Rig down pipe handling tools. ACTIVITY Level up the carrier. Rig up to run escape completion and change bails. Continue to rig up Weatherford, escape, Pollard Wireline and ASRC SUMMARY crane operator. Pick up and make up float shoe and float collar. Check float and continue running into hole with 3.5" escape completion as per program EPOCH PERSONNEL ON BOARD 2 DAILY COST ML 2500; RW 585 REPORT BY John Lundy •