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209-154
1. Type of Request: Abandon Plug Perforations Fracture Stimulate Repair Well Operations shutdown Suspend Perforate Other Stimulate Pull Tubing Change Approved Program Plug for Redrill Perforate New Pool Re-enter Susp Well Alter Casing Other: ___________________ 2. Operator Name: 4. Current Well Class: 5. Permit to Drill Number: Exploratory Development 3. Address: Stratigraphic Service 6. API Number: 7. If perforating:8. Well Name and Number: What Regulation or Conservation Order governs well spacing in this pool? 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): 7,520 N/A Casing Collapse Structural Conductor Surface 2,260psi Intermediate Production 5,410psi 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: Casey Morse Contact Email:Casey.Morse@hilcorp.com Contact Phone:(907) 777-8322 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 CO 228A 9/22/2025 3-1/2" See schematic See schematic 5,789' Perforation Depth MD (ft): 3,393 - 7,520 5,789' 2,861 - 4,554 4,537'7" 32" 13-3/8" 490' 1,402' MD 5,020psi 490' 1,375' 490' 1,402' Length Size Proposed Pools: L-80 TVD Burst 3,716 & 4,783 7,240psi STATE OF ALASKA ALASKA OIL AND GAS CONSERVATION COMMISSION APPLICATION FOR SUNDRY APPROVALS 20 AAC 25.280 ADL0018730 209-154 3800 Centerpoint Drive, Suite 1400, Anchorage, AK 99503 50-733-20588-00-00 Hilcorp Alaska, LLC Trading Bay Unit M-10 AOGCC USE ONLY Tubing Grade: Tubing MD (ft):Perforation Depth TVD (ft): Operations Manager Subsequent Form Required: Suspension Expiration Date: Will perfs require a spacing exception due to property boundaries? Current Pools: MPSP (psi): Plugs (MD): 17. I hereby certify that the foregoing is true and the procedure approved herein will not be deviated from without prior written approval. Authorized Name and Digital Signature with Date: Tubing Size: PRESENT WELL CONDITION SUMMARY McArthur River Middle Kenai Gas Same 4,558 7,520 4,558 1,303psi N/A No Form 10-403 Revised 06/2023 Approved application valid for 12 months from date of approval.Submit PDF to aogcc.permitting@alaska.gov By Grace Christianson at 1:05 pm, Sep 12, 2025 Digitally signed by Dan Marlowe (1267) DN: cn=Dan Marlowe (1267) Date: 2025.09.12 12:10:40 - 08'00' Dan Marlowe (1267) 325-558 10-404 DSR-9/12/25MGR24SEP2025A.Dewhurst 15SEP25JLC 9/25/2025 Gregory C Wilson Digitally signed by Gregory C Wilson Date: 2025.09.25 15:07:51 -08'00'09/25/25 RBDMS JSB 092625 Perf Add Well: Steelhead M-10 Well Name:M-10 API Number:50-733-20588-00-00 Current Status:Gas Producer Permit to Drill Number:209-154 First Call Engineer:Casey Morse (603) 205-3780 (c)Leg A-1 (SW corner) Second Call Engineer:Eric Dickerman (307) 250-4013 (c) Current BHP: Maximum Expected BHP:1,676 psi @ 3,725’ TVD 0.45psi/ft to deepest proposed perf Max. Potential Surface Pressure: 1303 psi Using 0.1 psi/ft Brief Well Summary M-10 on the Steelhead platform is a Middle Kenai Gas Pool Producer open in several sands currently. Certain sands have been bypassed historically and have potential to contribute additional gas rate. The goal of this project is to add infill gas sand perfs. All proposed perfs remain within the Middle Kenai Gas Pool Pertinent wellbore information: - Max deviation of 45-47 degrees starting from ~2000’ to 3000’ MD - SSSV: TR was locked out January-2021. WL-SSSV installed - Dec-2022 Slickline and Add Perf o 2.5” GR to 5,000’ KB o 2-3/8” x 30’ dummy gun to 4,850’ o Perf C3 and C1 sands - Jun-2020 o RWO to run 3-1/2” tubing and recomplete uphole Push fish to 5,466’ inside slotted liner and shake off fish Cut tubing at 4,747’ and lay down upper portion of completion Run lower 3-1/2” extension with guide and set lower packer. Test packer and casing to 1500 psi on 6/13/2020. Run upper 3-1/2” upper completion Perf Tyonek B5, B3, B1, A5, A3 Eline Perf Add Procedure 1. MIRU E-line and pressure control equipment 2. PT lubricator to 250psi low / 2500psi high 3. RIH and perforate from ±2,550 – 4,325’ MD a. All proposed perfs are within Middle Kenai Gas Pool b. Bottom pool is below PBTD c. Top pool is at 1,437’ MD Perf Add Well: Steelhead M-10 d. Pressures i. 13-3/8” shoe FIT at 1,462’ to 13.1 ppg equivalent (1/12/10) ii. Worst case pressure could create 12.9 ppg at top proposed perfs 4. RDMO Eline NOTE: WR-SSSV will need to be removed. It will be reinstalled and tested within 14 days of the well’s return to production Attachments 1. Current Wellbore Schematic 2. Proposed Wellbore Schematic Updated By: JLL 01/03/23 SCHEMATIC Steelhead Platform Well: M-10 PTD: 209-154 API: 50-733-20588-00 Completed: 06/14/20 PERFORATION DETAIL Zone Top (MD)Btm (MD) Top (TVD)Btm (TVD) FT Date Status A-3 3,393' 3,400' 2,861' 2,867' 7' 08/29/2020 Open A-5 3,465' 3,472' 2,926' 2,932' 7' 08/29/2020 Open A-5 3,505' 3,510' 2,962' 2,967' 5' 08/29/2020 Open A-5 3,527' 3,578' 2,982' 3,030' 51' 08/29/2020 Open B-1 3,770' 3,776' 3,212' 3,217' 6' 08/29/2020 Open B-1 3,804’ 3,814’ 3,244’ 3,253’ 10’ 07/12/2020 Open B-1 3,820’ 3,834’ 3,259’ 3,272’ 14’ 07/12/2020 Open B-3 3,893’ 3,969’ 3,328’ 3,399’ 76’ 07/12/2020 Open B-5 4,136’ 4,171’ 3,555’ 3,587’ 35’ 07/12/2020 Open B-5 4,176’ 4,209’ 3,592’ 3,622’ 33’ 07/12/2020 Open C1 4,514’ 4,551’ 3,897’ 3,928’ 27’ 12/30/2022 Open C1 4,562’ 4,592’ 3,938’ 3,962’ 30’ 12/30/2022 Open C1 4,616’ 4,629’ 3,981’ 3,992’ 13’ 12/30/2022 Open C3 4,717’ 4,737’ 4,061’ 4,076’ 20’ 12/30/2022 Open Open hole sands produced through screens D-2 5,789’ 6,611’ 4,537’ 4,563’ 822’ 2010 Screened open hole (screens start at 5300’ and below in 7” casing) D-2 6,611’ 7,520’ 4,563’ 4,554’ 909’ 2010 Open Hole below screens OPEN HOLE / CEMENT DETAIL 13-3/8"17-1/2” Hole: Pumped 152bbls 13.2ppg Class G lead cement followed by 136bbls 13.8ppg class G tail cement. 2nd stage through ECP / DV collar at 411’ MD: Pumped 260bbls 13.2ppg Class G cement. Returns throughout. 7" 9-1/4” Hole: Pumped 53bbls 14ppg Class G cement, and lost returns after 145bbls displacement. 2nd stage through DV collar at 4833’ MD: Pumped 276bbls 13.2ppg Class G cement. Trace returns to surface. USIT run on 2/2/10 (5 days after CIP) showed ToC at surface PBTD: 7,520’ TD: 7,520’ 32” RKB: 78’, RKB to MSL: 160.2’, RKB to Mudline: 345’ B-1 3 4 5 6 7 8 9 10 11 13-3/8” 7” 1 2 Cut Tbg @ 4,747’ ELM 6/10/20 12 13 14 4.5” wi re wrap screen TD @ 6611’ MD MAX HOLE ANGLE = 91.89q @ 7042’ MD B-3 B-5 Fish @ 5,466’ MD 12’ Overall Length A-3 A-5 C1 Sands C3 Sands X SC-1 Packer @ 4783’ MD Stage Collar @ 4833’ MD 13-3/8” ECP+DV Stage Collar @ 411’ X Casing &Tubing Detail SIZE WT GRADE CONN MIN ID TOP BTM (MD) BTM (TVD) 32” X-56 Welded 30” Surface 490’ 490’ 13-3/8” 68 L-80 BTC 12.415 Surface 1,402’ 1,376’ 7” 26 L-80 H-563 6.276 Surface 5,789’ 4,536’ Tubing Detail 3 ½ (2020) 9.3 L-80 IBTM 2.992 Surface 3,716’ 3,160’ 3 ½ (2020) 9.3 L-80 EUE 2.992 4,351’ 4,747 3 ½ (2010) 9.2 L-80 TC-II 2.992 4,747’ 4,783’ 4,110’ Jewelry Detail No Depth MD Depth TVD ID Item 73.24 73.24 Vetco Gray Hydril 563 Type H BPV Profile Hanger 1 448’ 448’ TRSSSV – Baker TE-5:Locked out 1/21/21. WL-SSSV installed 1/3/23 2 1,736’ 1,651’ 2.867” GLM #1 - PSPO-1M (Live) 3 2,474’ 2,172’ 2.867” GLM #2 - PSPO-1M (Orifice) 4 2,528’ 2,209’ 2.990” DLH Packer 5 2,573’ 2,240’ 2.810” X Nipple 6 3,716’ 3,160’ 3.390” WLEG 7 4,352’ 3,753’ 4.00” PBR / Liner Top Packer 8 4,393’ 3,790’ 2.992” X Nipple 9 4,744’ 4,081’ 3.000” Tubing Overshot (non-sealing) 10 4,783’ 4,109’ 4.000” 7” SC-1 Production Packer 11 4,800’ 4,121’ 3.110” Fluid Loss Control Valve 12 4,902’ 4,192’ 4.000 Weatherford swell packer 13 4,910’ 4,197’ 4.000 Weatherford swell packer 14 6,609’ 4,563’ NA GP Wash Down Shoe Updated By: CDM 09/12/25 PROPOSED SCHEMATIC Steelhead Platform Well: M-10 PTD: 209-154 API: 50-733-20588-00 Completed: 06/14/20 PERFORATION DETAIL Zone Top (MD)Btm (MD) Top (TVD)Btm (TVD) FT Date Status Various ±2,550 ±4,225 ±2,225 ±3,725 Proposed A-3 3,393' 3,400' 2,861' 2,867' 7' 08/29/2020 Open A-5 3,465' 3,472' 2,926' 2,932' 7' 08/29/2020 Open A-5 3,505' 3,510' 2,962' 2,967' 5' 08/29/2020 Open A-5 3,527' 3,578' 2,982' 3,030' 51' 08/29/2020 Open B-1 3,770' 3,776' 3,212' 3,217' 6' 08/29/2020 Open B-1 3,804’ 3,814’ 3,244’ 3,253’ 10’ 07/12/2020 Open B-1 3,820’ 3,834’ 3,259’ 3,272’ 14’ 07/12/2020 Open B-3 3,893’ 3,969’ 3,328’ 3,399’ 76’ 07/12/2020 Open B-5 4,136’ 4,171’ 3,555’ 3,587’ 35’ 07/12/2020 Open B-5 4,176’ 4,209’ 3,592’ 3,622’ 33’ 07/12/2020 Open C1 4,514’ 4,551’ 3,897’ 3,928’ 27’ 12/30/2022 Open C1 4,562’ 4,592’ 3,938’ 3,962’ 30’ 12/30/2022 Open C1 4,616’ 4,629’ 3,981’ 3,992’ 13’ 12/30/2022 Open C3 4,717’ 4,737’ 4,061’ 4,076’ 20’ 12/30/2022 Open Open hole sands produced through screens D-2 5,789’ 6,611’ 4,537’ 4,563’ 822’ 2010 Screened open hole (screens start at 5300’ and below in 7” casing) D-2 6,611’ 7,520’ 4,563’ 4,554’ 909’ 2010 Open Hole below screens OPEN HOLE / CEMENT DETAIL 13-3/8"17-1/2” Hole: Pumped 152bbls 13.2ppg Class G lead cement followed by 136bbls 13.8ppg class G tail cement. 2nd stage through ECP / DV collar at 411’ MD: Pumped 260bbls 13.2ppg Class G cement. Returns throughout. 7" 9-1/4” Hole: Pumped 53bbls 14ppg Class G cement, and lost returns after 145bbls displacement. 2nd stage through DV collar at 4833’ MD: Pumped 276bbls 13.2ppg Class G cement. Trace returns to surface. USIT run on 2/2/10 (5 days after CIP) showed ToC at surface PBTD: 7,520’ TD: 7,520’ 32” RKB: 78’, RKB to MSL: 160.2’, RKB to Mudline: 345’ B-1 3 4 5 6 7 8 9 10 11 13-3/8” 7” 1 2 Cut Tbg @ 4,747’ ELM 6/10/20 12 13 14 4.5” wire wrap screen TD @ 6611’ MD MAX HOLE ANGLE = 91.89q @ 7042’ MD B-3 B-5 Fish @ 5,466’ MD 12’ Overall Length A-3 A-5 C1 Sands C3 Sands X SC-1 Packer @ 4783’ MD Stage Collar @ 4833’ MD 13-3/8” ECP+DV Stage Collar @ 411’ X Casing &Tubing Detail SIZE WT GRADE CONN MIN ID TOP BTM (MD) BTM (TVD) 32” X-56 Welded 30” Surface 490’ 490’ 13-3/8” 68 L-80 BTC 12.415 Surface 1,402’ 1,376’ 7” 26 L-80 H-563 6.276 Surface 5,789’ 4,536’ Tubing Detail 3 ½ (2020) 9.3 L-80 IBTM 2.992 Surface 3,716’ 3,160’ 3 ½ (2020) 9.3 L-80 EUE 2.992 4,351’ 4,747 3 ½ (2010) 9.2 L-80 TC-II 2.992 4,747’ 4,783’ 4,110’ Jewelry Detail No Depth MD Depth TVD ID Item 73.24 73.24 Vetco Gray Hydril 563 Type H BPV Profile Hanger 1 448’ 448’ 2.992” TRSSSV – Baker TE-5:Locked out 1/21/21. WL-SSSV installed 1/3/23 2 1,736’ 1,651’ 2.867” GLM #1 - PSPO-1M (Live) 3 2,474’ 2,172’ 2.867” GLM #2 - PSPO-1M (Orifice) 4 2,528’ 2,209’ 2.990” DLH Packer 5 2,573’ 2,240’ 2.810” X Nipple 6 3,716’ 3,160’ 3.390” WLEG 7 4,352’ 3,753’ 4.00” PBR / Liner Top Packer 8 4,393’ 3,790’ 2.992” X Nipple 9 4,744’ 4,081’ 3.000” Tubing Overshot (non-sealing) 10 4,783’ 4,109’ 4.000” 7” SC-1 Production Packer 11 4,800’ 4,121’ 3.110” Fluid Loss Control Valve 12 4,902’ 4,192’ 4.000 Weatherford swell packer 13 4,910’ 4,197’ 4.000 Weatherford swell packer 14 6,609’ 4,563’ NA GP Wash Down Shoe New Plugback Esets 7/15/2024 Well Name API Number PTD Number ESet Number Date CRU C1-07 PB2 50-103-20478-71-00 203-225 T39188 1-29-2007 CRU CD2-467 PB1 50-103-20579-70-00 208-114 T39189 10-31-2008 CRU CD4-12 PB1 50-103-20414-70-00 210-091 T39190 9-20-2010 CRU CD4-210A PB1 50-103-20533-70-00 211-072 T39191 9-9-2011 KRU 1B-15AL3 PB1 50-029-22465-72-00 207-067 T39192 11-23-2009 KRU 1E-12L1 PB1 50-029-20736-70-00 210-004 T39193 5-24-2010 KRU 1E-12L2-01 PB1 50-029-20736-72-00 210-007 T39194 5-24-2010 KRU 3H-12A PB1 50-103-20088-70-00 211-081 T39195 9-9-2012 KRU 3I-11AL2 PB1 50-029-21932-70-00 210-076 T39196 11-1-2010 ODSK-33 PB1 50-703-20562-70-00 207-183 T39197 6-20-2008 OI11-01 50-029-23430-70-00 210-106 T39198 11-2-2010 OP04-07 PB1 50-029-23409-70-00 208-199 T39200 7-6-2010 OP08-04 PB1 50-029-23424-70-00 210-041 T39201 7-28-2010 PBU 06-02A PB1 50-029-20282-70-00 211-026 T39202 7-25-2011 PBU 15-05B PB1 50-029-20731-71-00 211-057 T39203 8-20-2011 PBU 15-16B PB1 50-029-21115-70-00 210-020 T39204 7-8-2010 PBU 18-04B PB1 50-029-20875-70-00 201-090 T39205 12-6-2002 PBU J-16B PB1 50-029-20967-70-00 212-014 T39206 9-28-2012 PBU K-05D PB1 50-029-21418-71-00 211-077 T39207 1-20-2012 PBU V-204L1 50-029-23217-60-00 204-132 T39208 11-13-2006 PBU W-19B PB1 50-029-22006-72-00 210-065 T39209 1-13-2011 PBU W-19BL1 PB1 50-029-22006-73-00 210-066 T39210 1-18-1011 SP23-N03 PB1 50-629-23456-70-00 211-127 T39211 3-5-2012 TBU M-10 PB1 50-733-20588-70-00 209-154 T39212 4-23-2010TBU M-10 PB1 50-733-20588-70-00 209-154 T39212 4-23-2010 Kyle Wiseman Hilcorp Alaska, LLC Geo Tech 3800 Centerpoint Drive, Suite 1400 Anchorage, AK 99503 Tele: (907) 564-4558 E-mail: Kyle.Wiseman@hilcorp.com Please acknowledge receipt by signing and returning one copy of this transmittal. Received By: Date: Date: 01/26/2023 To: Alaska Oil & Gas Conservation Commission Natural Resource Technician 333 W 7th Ave Suite 100 Anchorage, AK 99501 SFTP DATA TRANSMITTAL T#20230126 Well API #PTD #Log Date Log Company Log Type AOGCC Eset# TBU M-10 50733205880000 209154 12/30/2022 AK E-LINE Perf CLU 10RD 50133205530100 222113 12/29/2022 AK E-LINE GPT_Plug_Perf NCI A-14 50883201250000 208096 11/6/2022 AK E-LINE Perf BRU 214-13 50283201870000 222117 12/19/2022 AK E-LINE PPROF BRU 233-23 50283201360100 222050 12/21/2022 AK E-LINE PPROF SRU 224-10 50133101380100 222124 12/14/2022 AK E-LINE CBL Please include current contact information if different from above. By Meredith Guhl at 2:54 pm, Jan 26, 2023 T37473 T37474 T37475 T37476 T37477 T37478 TBU M-10 50733205880000 209154 12/30/2022 AK E-LINE Perf Meredith Guhl Digitally signed by Meredith Guhl Date: 2023.01.26 15:02:03 -09'00' 1. Operations Susp Well Insp Plug Perforations Fracture Stimulate Pull Tubing Operations shutdown Performed: Install Whipstock Perforate Other Stimulate Alter Casing Change Approved Program Mod Artificial Lift Perforate New Pool Repair Well Coiled Tubing Ops Other: ______________________ Development Exploratory Stratigraphic Service 6. API Number: 7. Property Designation (Lease Number): 8. Well Name and Number: 9. Logs (List logs and submit electronic data per 20AAC25.071): 10. Field/Pool(s): 11. Present Well Condition Summary: Total Depth measured 7,520 feet N/A feet true vertical 4,558 feet N/A feet Effective Depth measured 7,520 feet See Schematic feet true vertical 4,558 feet See Schematic feet Perforation depth Measured depth 3,393 - 7,520 feet True Vertical depth 2,861 - 4,554 feet 3-1/2" 9.3# / L-80 3,716 (MD) 3,161 (TVD) Tubing (size, grade, measured and true vertical depth) 3-1/2" 9.2# & 9.3# / L-80 4,783 (MD) 4,110 (TVD) Packers and SSSV (type, measured and true vertical depth) See Schematic 12. Stimulation or cement squeeze summary: Intervals treated (measured): Treatment descriptions including volumes used and final pressure: 13a. Prior to well operation: Subsequent to operation: 13b. Pools active after work: 15. Well Class after work: Daily Report of Well Operations Exploratory Development Service Stratigraphic Copies of Logs and Surveys Run 16. Well Status after work: Oil Gas WDSPL Electronic Fracture Stimulation Data GSTOR GINJ SUSP SPLUG Sundry Number or N/A if C.O. Exempt: Authorized Name and Digital Signature with Date: Contact Name: Contact Email: Authorized Title: Contact Phone: 5,410psi 5,020psi 7,240psi 1,402 1,375 Burst Collapse 2,260psi measured TVD Production Liner 5,789 Casing Structural 4,5375,789 490 1,402 490Conductor Surface Intermediate 32" 13-3/8" 7" STATE OF ALASKA ALASKA OIL AND GAS CONSERVATION COMMISSION REPORT OF SUNDRY WELL OPERATIONS 209-154 50-733-20588-00-00 3. Address: Hilcorp Alaska, LLC 3800 Centerpoint Drive, Suite 1400 Anchorage, AK 99503 N/A 5. Permit to Drill Number:2. Operator Name 4. Well Class Before Work: ADL0018730 McArthur River / Middle Kenai Gas Trading Bay Unit M-10 Plugs Junk measured Length measured true vertical Packer Representative Daily Average Production or Injection Data Casing Pressure Tubing Pressure 14. Attachments (required per 20 AAC 25.070, 25.071, & 25.283) 0 Gas-Mcf MD N/A 10 Size 490 0 10756 0 190 18 322-706 Sr Pet Eng: Sr Pet Geo: Sr Res Eng: WINJ WAG 890 Water-BblOil-Bbl 17. I hereby certify that the foregoing is true and correct to the best of my knowledge. Ryan Rupert Ryan.Rupert@hilcorp.com 907-777-8503Operations Manager N/A Middle Kenai Gas Pool pp kk tt Form 10-404 Revised 10/2022 Due Within 30 days of Operations Submit in PDF format to aogcc.permitting@alaska.gov By Samantha Carlisle at 12:47 pm, Jan 13, 2023 Digitally signed by Dan Marlowe (1267) DN: cn=Dan Marlowe (1267), ou=Users Date: 2023.01.12 17:56:35 -09'00' Dan Marlowe (1267) Updated By: JLL 01/03/23 SCHEMATIC Steelhead Platform Well: M-10 PTD: 209-154 API: 50-733-20588-00 Completed: 06/14/20 PERFORATION DETAIL Zone Top (MD)Btm (MD) Top (TVD)Btm (TVD) FT Date Status A-3 3,393' 3,400' 2,861' 2,867' 7' 08/29/2020 Open A-5 3,465' 3,472' 2,926' 2,932' 7' 08/29/2020 Open A-5 3,505' 3,510' 2,962' 2,967' 5' 08/29/2020 Open A-5 3,527' 3,578' 2,982' 3,030' 51' 08/29/2020 Open B-1 3,770' 3,776' 3,212' 3,217' 6' 08/29/2020 Open B-1 3,804 3,814 3,244 3,253 10 07/12/2020 Open B-1 3,820 3,834 3,259 3,272 14 07/12/2020 Open B-3 3,893 3,969 3,328 3,399 76 07/12/2020 Open B-5 4,136 4,171 3,555 3,587 35 07/12/2020 Open B-5 4,176 4,209 3,592 3,622 33 07/12/2020 Open C1 4,514 4,551 3,897 3,928 27 12/30/2022 Open C1 4,562 4,592 3,938 3,962 30 12/30/2022 Open C1 4,616 4,629 3,981 3,992 13 12/30/2022 Open C3 4,717 4,737 4,061 4,076 20 12/30/2022 Open Open hole sands produced through screens D-2 5,789 6,611 4,537 4,563 822 2010 Screened open hole (screens start at 5300 and below in 7 casing) D-2 6,611 7,520 4,563 4,554 909 2010 Open Hole below screens OPEN HOLE / CEMENT DETAIL 13-3/8"17-1/2 Hole: Pumped 152bbls 13.2ppg Class G lead cement followed by 136bbls 13.8ppg class G tail cement. 2nd stage through ECP / DV collar at 411 MD: Pumped 260bbls 13.2ppg Class G cement. Returns throughout. 7" 9-1/4 Hole: Pumped 53bbls 14ppg Class G cement, and lost returns after 145bbls displacement. 2nd stage through DV collar at 4833 MD: Pumped 276bbls 13.2ppg Class G cement. Trace returns to surface. USIT run on 2/2/10 (5 days after CIP) showed ToC at surface PBTD:7,520 TD:7,520 32 RKB: 78, RKB to MSL: 160.2, RKB to Mudline: 345 B-1 3 4 5 6 7 8 9 10 11 13-3/8 7 1 2 Cut Tbg @ 4,747 ELM 6/10/20 12 13 14 4.5 wirewrap screen TD @ 6611 MD MAX HOLE ANGLE = 91.89 @ 7042 MD B-3 B-5 Fish @ 5,466 MD 12 Overall Length A-3 A-5 C1Sands C3Sands X SC-1 Packer @ 4783 MD Stage Collar @ 4833 MD 13-3/8 ECP+DV Stage Collar @ 411 X Casing &Tubing Detail SIZE WT GRADE CONN MIN ID TOP BTM (MD) BTM (TVD) 32 X-56 Welded 30 Surface 490 490 13-3/8 68 L-80 BTC 12.415 Surface 1,402 1,376 7 26 L-80 H-563 6.276 Surface 5,789 4,536 Tubing Detail 3 ½ (2020) 9.3 L-80 IBTM 2.992 Surface 3,716 3,160 3 ½ (2020) 9.3 L-80 EUE 2.992 4,351 4,747 3 ½ (2010) 9.2 L-80 TC-II 2.992 4,747 4,783 4,110 Jewelry Detail No Depth MD Depth TVD ID Item 73.24 73.24 Vetco Gray Hydril 563 Type H BPV Profile Hanger 1 448 448 TRSSSV Baker TE-5:Locked out 1/21/21. WL-SSSV installed 1/3/23 2 1,736 1,651 2.867 GLM #1 - PSPO-1M (Live) 3 2,474 2,172 2.867 GLM #2 - PSPO-1M (Orifice) 4 2,528 2,209 2.990 DLH Packer 5 2,573 2,240 2.810 X Nipple 6 3,716 3,160 3.390 WLEG 7 4,352 3,753 4.00 PBR / Liner Top Packer 8 4,393 3,790 2.992 X Nipple 9 4,744 4,081 3.000 Tubing Overshot (non-sealing) 10 4,783 4,109 4.000 7 SC-1 Production Packer 11 4,800 4,121 3.110 Fluid Loss Control Valve 12 4,902 4,192 4.000 Weatherford swell packer 13 4,910 4,197 4.000 Weatherford swell packer 14 6,609 4,563 NA GP Wash Down Shoe Rig Start Date End Date Eline / SL 12/29/22 1/4/23 Morning safety meeting. Rig up on M-10. P/T fails, lay lubricator down, check stuffing box, replace packing, o-ring. P/T fails, still leaking from stuffing box, lay lubricator down, can't find the problem. Standby for replacement stuffing box. Pick up lubricator. P/T to 1500, good. RIH W/ 3 GS and prong to 448' KB, latch, POOH W/ SSSV. RIH W/ 2.50 G-Ring to 5000' KB, POOH. RIH W/ 2 3/8 x 30' dummy guns to 4850', no issues, POOH. Rig down. 12/30/22 - Friday AK Eline arrive at Chopper. Chopper flight to Steelhead. Arrive platform. Perform platform orientation. PJSM & open PTW. Begin rig up, start unit. Remove SL WLV's and stab on Eline WLV's & P-Sub. Blow down slobber hose. Make up lubricator and BHA #1. Stab on the well. PT to 250/2000, pass. RIH w/ 6.3' x 1.69" GR/CCL, 1' x 1.69" shock sub, 20' x 2 3/8" Geo Razor LS guns (6 spf). CCL to top shot = 9.2'. Pull correlation, on depth. Shoot the C3u sand from 4717' - 4737'. CCL stop depth = 4707.8'. Initial rate = 1.0 mmscfd, 19 psi. 5 min = 1.0 mmscfd, 19 psi. 10 min = .91 mmscfd, 19 psi. 15 min = .90 mmscfd, 19 psi. POOH, bull plug wet. RIH w/ 6.3' x 1.69" GR/CCL, 1' x 1.69" shock sub, 13' x 2 3/8" Geo Razor LS guns (6 spf). CCL to top shot = 10'. Pull correlation, shift -1'. Shoot the C1L sand from 4616'-4629'. CCL stop depth = 4606'. Initial rate = 1.0 mmscfd, 19 psi. 5 min = .95 mmscfd, 19 psi,. 10 min = .91 mmscfd, 19 psi. 15 min = .93 mmscfd, 19 psi. POOH, bull plug wet. RIH w/ 6.3' x 1.69" GR/CCL, 1' x 1.69" shock sub, 20' x 2 3/8" Geo Razor LS guns (6 spf). CCL to top shot = 9.2'. Pull correlation, on depth. Shoot the C1m2 sand from 4572'-4592'. CCL stop depth = 4562.8'. Initial rate = .99 mmscfd, 19 psi. 5 min = .95 mmscfd, 19 psi. 10 min = .92 mmscfd, 19 psi. 15 min = 1.05 mmscfd, 20 psi. POOH, bull plug wet. RIH w/ 6.3' x 1.69" GR/CCL, 1' x 1.69" shock sub, 10' x 2 3/8" Geo Razor LS guns (6 spf). CCL to top shot = 9.2'. Pull correlation, on depth. Shoot the C1m1 sand from 4562'-4572'. CCL stop depth = 4552.8'. Initial rate = .99 mmscfd, 19 psi. 5 min = .93 mmscfd, 19 psi. 10 min = .92 mmscfd, 19 psi. 15 min = .94 mmscfd, 19 psi. POOH, bull plug wet. RIH w/ 6.3' x 1.69" GR/CCL, 1' x 1.69" shock sub, 20' x 2 3/8" Geo Razor LS guns (6 spf). CCL to top shot = 9.2'. Pull correlation, on depth. Shoot the C1u2 sand from 4531'-4551'. CCL stop depth = 4521.8'. Initial rate = .96 mmscfd, 19 psi. 5 min = .89 mmscfd, 19 psi. 10 min = .90 mmscfd, 19 psi. 15 min = 1.01 mmscfd, 19 psi. POOH, bull plug wet. RIH w/ 6.3' x 1.69" GR/CCL, 1' x 1.69" shock sub, 17' x 2 3/8" Geo Razor LS guns (6 spf). CCL to top shot = 12'. Pull correlation, on depth. Shoot the C1u1 sand from 4514'-4531'. CCL stop depth = 4502'. Initial rate = .99 mmscfd, 19 psi. 5 min = .90 mmscfd, 19 psi. 10 min = .89 mmscfd, 19 psi. 15 min = 1.01 mmscfd, 19 psi. POOH, bull plug wet. OOH. Lay down toolstring and lubricator and secure well. RDMO Eline. Catch chopper flight back to Kenai. 12/29/22 - Thursday Daily Operations: Hilcorp Alaska, LLC Well Operations Summary API Number Well Permit NumberWell Name M-10 50-733-20588-00 209-154 Rig Start Date End Date Eline / SL 12/29/22 1/4/23 Daily Operations: Hilcorp Alaska, LLC Well Operations Summary API Number Well Permit NumberWell Name M-10 50-733-20588-00 209-154 01/03/23 - Tuesday RU. Pressure test to 250 psi low, 2000 psi high, PASSED. RIH w/ 3 1/2" GS to 416' slm, w/t. POOH. OOH, w/ SSSV. Upper and lower packing badly damaged on the same side of valve (in line). Proceed to re-dress and clean SSSV, w/ over sized packing (2.87 OD). RIH w/ 3" X-line and re-dressed SSSV to 416' slm, stopping @ 400' until purge of control line complete. W/t, set SSSV (10 min). POOH. Ops begin filling SSSV void. OOH. Informed by Ops that SSV control line is holding at 4400 psi. Lay down for the night. Rig up Slickline. P/T, fails, change o-ring. P/T to 1500 PSI, good. RIH W/ 3 X-Line running tool and 10' prong W/ SSSV (zeroed at lock on bridge) to 413 WLM, W/T, could not Pin bottom and top with steel. RIH W/ 3 X-Line running tool and 10' prong W/ SSSV (zeroed at lock on bridge) to 413 WLM, W/T, shear, POOH, valve isn't pressuring up. RIH W/ 3 GS to 413 WLM, latch, spang up, tool comes free, POOH W/O valve. GS isn't sheared. RIH W/ 3 GS to 413 WLM, latch, spang up, POOH W/ valve. RIH W/ 3 braided line brush, brush profile several times, POOH. RIH W/ 3 X-Line running tool and 10' prong W/ SSSV (zeroed at lock on bridge) to 413 WLM, tap down lightly for 30 minutes moves several inches, beat down hard for 10 minutes, shear o , POOH. 5 Packing in, 1 O-Ring, 1 packing out. Did not pressure up. RIH W/ 3 GS to 413 WLM, latch, spang up, POOH W/ valve. RIH W/ 2.83 G-Ring to 417' WLM, POOH. RIH W/ 3 X-Line standard packing all in, 1 o-ring, tap lightly for 30 min, beat down for 5 min, shear o POOH. Done for night. 01/02/23 - Monday Pressured up SSSV to 4200 PSI at 01:00, then dumped it, would not pressure up again. RIH W/ 3 GS and 10' prong to 416' WLM (zeroed GS at bridge) latch SSSV, spang up, POOH W/ valve. Lock on valve is damaged, standby for replacement lock. RIH W/ 3 X-Line, 10' prong, and SSSV. Top is double pined with Oversized packing all facing hydraulic port. Set down at 412' WLM, tap down lighly for 30 minutes, tap down a little harder for 30 minutes, first set of packing falls through after 1 HR, continue tapping down with medium hits for 30 minutes, beat down hard for 15 minutes, shear off at 416' WLM, POOH. Lay down, move to M-14. 01/01/23 - Sunday Rig Start Date End Date Eline / SL 12/29/22 1/4/23 Daily Operations: Hilcorp Alaska, LLC Well Operations Summary API Number Well Permit NumberWell Name M-10 50-733-20588-00 209-154 01/04/23 - Wednesday M-10 closure test on WL-SSSV passed, and it still holds control line pressure. RD SL from M-10 1. Type of Request: Abandon Plug Perforations Fracture Stimulate Repair Well Operations shutdown Suspend Perforate Other Stimulate Pull Tubing Change Approved Program Plug for Redrill Perforate New Pool Re-enter Susp Well Alter Casing Other: ___________________ 2. Operator Name: 4. Current Well Class: 5. Permit to Drill Number: Exploratory Development 3. Address: Stratigraphic Service 6. API Number: 7. If perforating:8. Well Name and Number: What Regulation or Conservation Order governs well spacing in this pool? Will planned perforations require a spacing exception? Yes No 9. Property Designation (Lease Number): 10. Field: Current Pools: McArthur River 11. Total Depth MD (ft): Total Depth TVD (ft): Effective Depth MD: Effective Depth TVD: MPSP (psi): Plugs (MD): Junk (MD): 7,520 N/A Casing Collapse Structural Conductor Surface 2,260psi Intermediate Production 5,410psi Liner Packers and SSSV Type: Packers and SSSV MD (ft) and TVD (ft): 12. Attachments: Proposal Summary Wellbore schematic 13. Well Class after proposed work: Detailed Operations Program BOP Sketch Exploratory Stratigraphic Development Service 14. Estimated Date for 15. Well Status after proposed work: Commencing Operations: OIL WINJ WDSPL Suspended 16. Verbal Approval: Date: GAS WAG GSTOR SPLUG AOGCC Representative: GINJ Op Shutdown Abandoned Contact Name: Ryan Rupert Contact Email:Ryan.Rupert@hilcorp.com Contact Phone:(907) 777-8503 Authorized Title: Conditions of approval: Notify AOGCC so that a representative may witness Sundry Number: Plug Integrity BOP Test Mechanical Integrity Test Location Clearance Other: Post Initial Injection MIT Req'd? Yes No Spacing Exception Required? Yes No Subsequent Form Required: APPROVED BY Approved by: COMMISSIONER THE AOGCC Date: Comm. Comm. Sr Pet Eng Sr Pet Geo Sr Res Eng 7" CO 228A 7,5204,558 4,558 1,549 32" 13-3/8" 490 1,402 Perforation Depth MD (ft): 5,789 7,240psi MD 5,020psi 490 1,375 490 1,402 4,5375,789 Length Size Proposed Pools: TVD Burst PRESENT WELL CONDITION SUMMARY N/A STATE OF ALASKA ALASKA OIL AND GAS CONSERVATION COMMISSION APPLICATION FOR SUNDRY APPROVALS 20 AAC 25.280 ADL0018730 209-154 3800 Centerpoint Drive, Suite 1400, Anchorage, AK 99503 50-733-20588-00-00 Hilcorp Alaska, LLC Trading Bay Unit M-10 Middle Kenai Gas Middle Kenai Gas Tubing Grade: Tubing MD (ft):Perforation Depth TVD (ft): Tubing Size: 9.3# & 9.2# / L-80 3,716 & 4,783 1/2/2023 See schematic See schematic 3,393 - 7,520 2,861 - 4,554 3-1/2" 17. I hereby certify that the foregoing is true and the procedure approved herein will not be deviated from without prior written approval. Authorized Name and Digital Signature with Date: AOGCC USE ONLY Operations Manager Form 10-403 Revised 10/2022 Approved application valid for 12 months from date of approval.Submit PDF to aogcc.permitting@alaska.gov By Anne Prysunka at 10:52 am, Dec 16, 2022 322-706 Digitally signed by Dan Marlowe (1267) DN: cn=Dan Marlowe (1267), ou=Users Date: 2022.12.16 09:54:21 -09'00' Dan Marlowe (1267) SFD 12/22/2022BJM 12/22/22 10-404 GCW 12/23/22 Jessie L. Chmielowski Digitally signed by Jessie L. Chmielowski Date: 2022.12.23 10:52:02 -09'00' RBDMS JSB 122922 Perf add Well: M-10 Well Name:M-10 API Number:50-733-20588-00-00 Current Status:Online Gas Producer Permit to Drill Number:209-154 First Call Engineer:Ryan Rupert (907) 301-1736 (c)Leg A-1 (SW corner) Second Call Engineer:Dan Marlowe (907) 398-9904 (c) Maximum Expected BHP:2004 psi @ 4,554’ TVD 0.44psi/ft to deepest open pay Max. Potential Surface Pressure: 1549 psi Using 0.1 psi/ft Brief Well Summary M-10 on the Steelhead platform is a Middle Kenai Gas Pool Producer open in several sands currently. There are some potential bypassed sands to complete still available between the existing perforations. The goal of this project is to add infill gas sand perfs. All proposed perfs remain within the Middle Kenai Gas Pool Pertinent wellbore information: - SSSV: Locked out January-2021. WL-SSSV installed - Max inclination down to perf interval: 47 degrees from 1900- 2900’ MD RWO recomplete 6/8/2020 Installed lower 3-1/2" extension tubing. Installed Upper 3-1/2" completion with new TRSSSV. 6/13/2020 SL enters and pulls RHCP sub and prong from X-nipple at 4393' MD. No issues. Recover isolation plug 6/25/2020 SL tries, and can't recover reservoir isolation plug from 4755' ELMD in old completion (just below tubing cut / overshot). No issues getting into PBR at 4352' MD. CT successfully fishes B-sand perfs 7/11/2020 EL enters lower completion down to 4400' for tie-in several times (no issues). EL perf B-1, B-3, B-5 A-sand perfs 8/29/2020 EL perf A-3, A-5, B1. Lockout TRSSSV 1/21/2021 Issues with TRSSSV. Can't fix. Lock it out. Install WL-SSSV o add infill gas sand perfs. Perf add Well: M-10 SL: 1. MIRU SL 2. PT lubricator to 250psi low / 2000psi high 3. Pull WL-SSSV 4. RDMO SL E-Line Perf procedure 1. MIRU E-line and pressure control equipment 2. PT lubricator to 250psi low / 2000psi high 3. RIH and perforate C sands from ±4,500’ – ±4,750’ MD (±3,888’ – ±4,085’ TVD) per RE/Geo 4. RDMO EL SL: 1. MIRU SL 2. PT lubricator to 250psi low / 2000psi high 3. Set WL-SSSV 4. Obtain passing closure test 5. RDMO SL NOTE: SSSV must be tested within 14 days of well being returned to production Attachments: 1. Current Wellbore Schematic 2. Proposed Wellbore Schematic Updated By: CRR 12/15/22 SCHEMATIC Steelhead Platform Well: M-10 PTD: 209-154 API: 50-733-20588-00 Completed: 06/14/20 PERFORATION DETAIL Zone Top (MD)Btm (MD) Top (TVD)Btm (TVD) FT Date Status A-3 3,393' 3,400' 2,861' 2,867' 7' 08/29/20 Open A-5 3,465' 3,472' 2,926' 2,932' 7' 08/29/20 Open A-5 3,505' 3,510' 2,962' 2,967' 5' 08/29/20 Open A-5 3,527' 3,578' 2,982' 3,030' 51' 08/29/20 Open B-1 3,770' 3,776' 3,212' 3,217' 6' 08/29/20 Open B-1 3,804’ 3,814’ 3,244’ 3,253’ 10’ 7/12/2020 Open B-1 3,820’ 3,834’ 3,259’ 3,272’ 14’ 7/12/2020 Open B-3 3,893’ 3,969’ 3,328’ 3,399’ 76’ 7/12/2020 Open B-5 4,136’ 4,171’ 3,555’ 3,587’ 35’ 7/11/2020 Open B-5 4,176’ 4,209’ 3,592’ 3,622’ 33’ 7/11/2020 Open Open hole sands produced through screens D-2 5,789’ 6,611’ 4,537’ 4,563’ 822’ 2010 Screened open hole (screens start at 5300’ and below in 7” casing) D-2 6,611’ 7,520’ 4,563’ 4,554’ 909’ 2010 Open Hole below screens OPEN HOLE / CEMENT DETAIL 13-3/8"17-1/2” Hole: Pumped 152bbls 13.2ppg Class G lead cement followed by 136bbls 13.8ppg class G tail cement. 2nd stage through ECP / DV collar at 411’ MD: Pumped 260bbls 13.2ppg Class G cement. Returns throughout. 7" 9-1/4” Hole: Pumped 53bbls 14ppg Class G cement, and lost returns after 145bbls displacement. 2nd stage through DV collar at 4833’ MD: Pumped 276bbls 13.2ppg Class G cement. Trace returns to surface. USIT run on 2/2/10 (5 days after CIP) showed ToC at surface PBTD: 7,520’ TD: 7,520’ 32” RKB: 78’, RKB to MSL: 160.2’, RKB to Mudline: 345’ B-1 3 4 5 6 7 8 9 10 11 13-3/8” 7” 1 2 Cut Tbg @ 4,747’ ELM 6/10/20 12 13 14 4.5” wire wrap screen TD @ 6611’ MD MAX HOLE ANGLE = 91.89q @ 7042’ MD B-3 B-5 Fish @ 5,466’ MD 12’ Overall Length A-3 A-5 X SC-1 Packer @ 4783’ MD Stage Collar @ 4833’ MD 13-3/8” ECP+DV Stage Collar @ 411’ X Casing &Tubing Detail SIZE WT GRADE CONN MIN ID TOP BTM (MD) BTM (TVD) 32” X-56 Welded 30” Surface 490’ 490’ 13-3/8” 68 L-80 BTC 12.415 Surface 1,402’ 1,376’ 7” 26 L-80 H-563 6.276 Surface 5,789’ 4,536’ Tubing Detail 3 ½ (2020) 9.3 L-80 IBTM 2.992 Surface 3,716’ 3,160’ 3 ½ (2020) 9.3 L-80 EUE 2.992 4,351’ 4,747 3 ½ (2010) 9.2 L-80 TC-II 2.992 4,747’ 4,783’ 4,110’ Jewelry Detail No Depth MD Depth TVD ID Item 73.24 73.24 Vetco Gray Hydril 563 Type H BPV Profile Hanger 1 448’ 448’ TRSSSV – Baker TE-5:Locked out 1/21/21. WL-SSSV installed 1/23/21 2 1,736’ 1,651’ 2.867” GLM #1 - PSPO-1M (Live) 3 2,474’ 2,172’ 2.867” GLM #2 - PSPO-1M 4 2,528’ 2,209’ 2.990” DLH Packer 5 2,573’ 2,240’ 2.810” X Nipple 6 3,716’ 3,160’ 3.390” WLEG 7 4,352’ 3,753’ 4.00” PBR / Liner Top Packer 8 4,393’ 3,790’ 2.992” X Nipple 9 4,744’ 4,081’ 3.000” Tubing Overshot (non-sealing) 10 4,783’ 4,109’ 4.000” 7” SC-1 Production Packer 11 4,800’ 4,121’ 3.110” Fluid Loss Control Valve 12 4,902’ 4,192’ 4.000 Weatherford swell packer 13 4,910’ 4,197’ 4.000 Weatherford swell packer 14 6,609’ 4,563’ NA GP Wash Down Shoe Updated By: JLL 12/16/22 PROPOSED Steelhead Platform Well: M-10 PTD: 209-154 API: 50-733-20588-00 Completed: 06/14/20 PERFORATION DETAIL Zone Top (MD)Btm (MD) Top (TVD)Btm (TVD) FT Date Status A-3 3,393' 3,400' 2,861' 2,867' 7' 08/29/20 Open A-5 3,465' 3,472' 2,926' 2,932' 7' 08/29/20 Open A-5 3,505' 3,510' 2,962' 2,967' 5' 08/29/20 Open A-5 3,527' 3,578' 2,982' 3,030' 51' 08/29/20 Open B-1 3,770' 3,776' 3,212' 3,217' 6' 08/29/20 Open B-1 3,804’ 3,814’ 3,244’ 3,253’ 10’ 7/12/2020 Open B-1 3,820’ 3,834’ 3,259’ 3,272’ 14’ 7/12/2020 Open B-3 3,893’ 3,969’ 3,328’ 3,399’ 76’ 7/12/2020 Open B-5 4,136’ 4,171’ 3,555’ 3,587’ 35’ 7/11/2020 Open B-5 4,176’ 4,209’ 3,592’ 3,622’ 33’ 7/11/2020 Open C Sands ±4,500’ ±4,750’ ±3,888’ ±4,085’ ±250’ Future Proposed Open hole sands produced through screens D-2 5,789’ 6,611’ 4,537’ 4,563’ 822’ 2010 Screened open hole (screens start at 5300’ and below in 7” casing) D-2 6,611’ 7,520’ 4,563’ 4,554’ 909’ 2010 Open Hole below screens OPEN HOLE / CEMENT DETAIL 13-3/8"17-1/2” Hole: Pumped 152bbls 13.2ppg Class G lead cement followed by 136bbls 13.8ppg class G tail cement. 2nd stage through ECP / DV collar at 411’ MD: Pumped 260bbls 13.2ppg Class G cement. Returns throughout. 7" 9-1/4” Hole: Pumped 53bbls 14ppg Class G cement, and lost returns after 145bbls displacement. 2nd stage through DV collar at 4833’ MD: Pumped 276bbls 13.2ppg Class G cement. Trace returns to surface. USIT run on 2/2/10 (5 days after CIP) showed ToC at surface PBTD: 7,520’ TD: 7,520’ 32” RKB: 78’, RKB to MSL: 160.2’, RKB to Mudline: 345’ B-1 3 4 5 6 7 8 9 10 11 13-3/8” 7” 1 2 Cut Tbg @ 4,747’ ELM 6/10/20 12 13 14 4.5” wire wrap screen TD @ 6611’ MD MAX HOLE ANGLE = 91.89q @ 7042’ MD B-3 B-5 Fish @ 5,466’ MD 12’ Overall Length A-3 A-5 C Sands X SC-1 Packer @ 4783’ MD Stage Collar @ 4833’ MD 13-3/8” ECP+DV Stage Collar @ 411’ X Casing &Tubing Detail SIZE WT GRADE CONN MIN ID TOP BTM (MD) BTM (TVD) 32” X-56 Welded 30” Surface 490’ 490’ 13-3/8” 68 L-80 BTC 12.415 Surface 1,402’ 1,376’ 7” 26 L-80 H-563 6.276 Surface 5,789’ 4,536’ Tubing Detail 3 ½ (2020) 9.3 L-80 IBTM 2.992 Surface 3,716’ 3,160’ 3 ½ (2020) 9.3 L-80 EUE 2.992 4,351’ 4,747 3 ½ (2010) 9.2 L-80 TC-II 2.992 4,747’ 4,783’ 4,110’ Jewelry Detail No Depth MD Depth TVD ID Item 73.24 73.24 Vetco Gray Hydril 563 Type H BPV Profile Hanger 1 448’ 448’ TRSSSV – Baker TE-5:Locked out 1/21/21. WL-SSSV installed 1/23/21 2 1,736’ 1,651’ 2.867” GLM #1 - PSPO-1M (Live) 3 2,474’ 2,172’ 2.867” GLM #2 - PSPO-1M 4 2,528’ 2,209’ 2.990” DLH Packer 5 2,573’ 2,240’ 2.810” X Nipple 6 3,716’ 3,160’ 3.390” WLEG 7 4,352’ 3,753’ 4.00” PBR / Liner Top Packer 8 4,393’ 3,790’ 2.992” X Nipple 9 4,744’ 4,081’ 3.000” Tubing Overshot (non-sealing) 10 4,783’ 4,109’ 4.000” 7” SC-1 Production Packer 11 4,800’ 4,121’ 3.110” Fluid Loss Control Valve 12 4,902’ 4,192’ 4.000 Weatherford swell packer 13 4,910’ 4,197’ 4.000 Weatherford swell packer 14 6,609’ 4,563’ NA GP Wash Down Shoe 1. Operations Abandon Plug Perforations Fracture Stimulate Pull Tubing Operations shutdown Performed: Suspend Perforate Other Stimulate Alter Casing Change Approved Program Plug for Redrill Perforate New Pool Repair Well Re-enter Susp Well Development Exploratory Stratigraphic Service 6. API Number: 7. Property Designation (Lease Number): 8. Well Name and Number: 9. Logs (List logs and submit electronic data per 20AAC25.071):10. Field/Pool(s): 11. Present Well Condition Summary: Total Depth measured 7,520 feet N/A feet true vertical 4,554 feet N/A feet Effective Depth measured 7,520 feet See schematic feet true vertical 4,554 feet See schematic feet Perforation depth Measured depth 3,393 - 7,520 feet True Vertical depth 2,861 - 4,554 feet 3-1/2" 9.3 / L-80 3,716 MD 3,161 TVD Tubing (size, grade, measured and true vertical depth)3-1/2" 9.2 / L-80 4,783 MD 4,110 TVD Packers and SSSV (type, measured and true vertical depth)See schematic 12. Stimulation or cement squeeze summary: Intervals treated (measured): Treatment descriptions including volumes used and final pressure: 13. Prior to well operation: Subsequent to operation: 15. Well Class after work: Daily Report of Well Operations Exploratory Development Service Stratigraphic Copies of Logs and Surveys Run 16. Well Status after work: Oil Gas WDSPL Electronic Fracture Stimulation Data GSTOR GINJ SUSP SPLUG Sundry Number or N/A if C.O. Exempt: Contact Name: Authorized Title: Contact Email: Contact Phone: Hilcorp Alaska, LLC 2. Operator Name Senior Engineer: Senior Res. Engineer: Daniel E. Marlowe Operations Manager Burst Katherine.oconnor@hilcorp.com Tubing Pressure 2,260psi5,020psi 907 777-8376 7,240psi 490 1,375 4,537 Katherine O'Connor 490 1,402 Conductor Surface 5,410psi 32" 13-3/8" 5,789 Size 8 Production Casing Structural Liner Length Intermediate N/A Junk 5. Permit to Drill Number: 1,335 McArthur River Field / Middle Kenai Gas PoolN/A measured 0 Gas-Mcf 8 N/A Oil-Bbl 1,060 Water-Bbl 17. I hereby certify that the foregoing is true and correct to the best of my knowledge. 320-336 24 Authorized Signature with date: Authorized Name: 0 WINJ WAG STATE OF ALASKA ALASKA OIL AND GAS CONSERVATION COMMISSION REPORT OF SUNDRY WELL OPERATIONS 209-154 50-733-20588-00-00 Plugs ADL0018730 Trading Bay Unit M-10 3800 Centerpoint Dr, Suite 1400 Anchorage, AK 99503 3. Address: 4. Well Class Before Work: 0 Representative Daily Average Production or Injection Data 400 Casing Pressure 14. Attachments (required per 20 AAC 25.070, 25.071, & 25.283) 7" 5,789 MD 490 1,402 TVD measured true vertical Packer Other: measured Collapse Form 10-404 Revised 3/2020 Submit Within 30 days of Operations By Samantha Carlisle at 3:55 pm, Oct 06, 2020 Daniel Marlowe I am approving this document 2020.10.06 15:45:57 -08'00' Daniel Marlowe SFD 10/7/2020 RBDMS HEW 10/30/2020 gls 10/13/20 Perforate DSR-10/12/2020 Updated By: JLL 10/06/20 SCHEMATIC Trading Bay Unit Steelhead Platform Well: M-10 PTD: 209-154 API: 50-733-20588-00 Completed: 06/14/20 PERFORATION DETAIL Zone Top (MD)Btm (MD) Top (TVD)Btm (TVD) FT Date Status A-3 3,393' 3,400' 2,861' 2,867' 7' 08/29/20 Open A-5 3,465' 3,472' 2,926' 2,932' 7' 08/29/20 Open A-5 3,505' 3,510' 2,962' 2,967' 5' 08/29/20 Open A-5 3,527' 3,578' 2,982' 3,030' 51' 08/29/20 Open B-1 3,770' 3,776' 3,212' 3,217' 6' 08/29/20 Open B-1 3,804’ 3,814’ 3,244’ 3,253’ 10’ 7/12/2020 Open B-1 3,820’ 3,834’ 3,259’ 3,272’ 14’ 7/12/2020 Open B-3 3,893’ 3,969’ 3,328’ 3,399’ 76’ 7/12/2020 Open B-5 4,136’ 4,171’ 3,555’ 3,587’ 35’ 7/11/2020 Open B-5 4,176’ 4,209’ 3,592’ 3,622’ 33’ 7/11/2020 Open Open hole sands produced through screens D-2 5,789’ 6,611’ 4,537’ 4,563’ 822’ 2010 Screened open hole D-2 6,611’ 7,520’ 4,563’ 4,554’ 909’ 2010 Open Hole below screens PBTD: 7,520’ TD:7,520’ 32” RKB: 78’, RKB to MSL: 160.2’, RKB to Mudline: 345’ B-1 3 4 5 6 7 8 9 10 11 12 13-3/8” 7” 1 2 Cut Tbg @4,747’ ELM 6/10/20 13 4.5” wire wrap screen TD @ 6611’ MD 6 1/8” Open Hole 7” Casing in 9 1/4” Hole 4.5” wire wrap screen MAX HOLE ANGLE = 91.89q @ 7042’ MD B-3 B-5 Fish @ 5,466’ MD 12’ Overall Length A-3 A-5 X SC-1 Packer @ 4783’ MD Swell Packer @ 4902’ MD Swell Packer @ 4910’ MD 13 3/8” in 17 ½” Hole Est TOC @ 300’ Stage Collar @ 4833’ MD ECP Stage Collar @ 411’ X Casing &Tubing Detail SIZE WT GRADE CONN MIN ID TOP BTM (MD) BTM (TVD) 32” X-56 Welded 30” Surface 490’ 490’ 13-3/8” 68 L-80 BTC 12.415 Surface 1,402’ 1,376’ 7” 26 L-80 H-563 6.276 Surface 5,789’ 4,536’ Tubing Detail 3 1/2 9.3 L-80 IBTM 2.992 Surface 3,716’ 3,160’ 3 1/2 9.2 L-80 TC-II 2.992 4,747’ 4,783’ 4,110’ Jewelry Detail No Depth MD Depth TVD ID OD Item 73.24 73.24 Vetco Gray Hydril 563 Type H BPV Profile Hanger 1 448’ 448’ 2.812” 5.375” SSSV – Baker TE-5 2 1,736’ 1,651’ 2.867” 5.313” GLM #1 - PSPO-1M (Live) 3 2,474’ 2,172’ 2.867” 5.313” GLM #2 - PSPO-1M 4 2,528’ 2,209’ 2.990” 6.000” DLH Packer 5 2,573’ 2,240’ 2.810” 4.250” X Nipple w/RHC Plug 6 3,716’ 3,160’ 3.390” 4.290” WLEG 7 4,352’ 3,753’ 5.00” 5.87” PBR 8 4,356’ 3,757’ 4.00” 5.87” Liner Top Packer 9 4,393’ 3,790’ 2.992” 3.500” X Nipple w/ RHCP Plug 10 4,744’ 4,081’ 3.000” 4.750” Tubing Overshot 11 4,783’ 4,109’ 4.000” 6.000” 7” SC-1 Production Packer 4,789’ 4,114’ 3.990” 5.010” Seal Bore Extension 4,793' 4,116’ 4.710” 5.520” Retrieving Extension 4,800’ 4,121’ 3.110” 5.810” Fluid Loss Control Valve 4,809’ 4,128’ 3.958” 4.530” 4.5”,12.6 lb/ft TC-II Blank Pipe 12 4,902’ 4,192’ 4.000 5.75” Weatherford swell packer 13 4,910’ 4,197’ 4.000 5.75” Weatherford swell packer 4,922’ 4,205’ 3.958” 4.530” 4.5”,12.6 lb/ft TC-II Blank Pipe 5,300’ 4,405’ 3.540” 4.450” 4.0” BakerWeld 12 Ga Screen 5,713’ 4,520’ 3.958” 4.530” 4.5”,12.6 lb/ft TC-II Blank Pipe 5,747’ 4,528’ 3.540” 4.450” 4.0” BakerWeld 12 Ga Screen 5,786’ 4,536’ 3.958” 4.530” 4.5”,12.6 lb/ft TC-II Blank Pipe 6,042’ 4,561’ 3.540” 4.450” 4.0” BakerWeld 12 Ga Screen 6,605’ 4,563’ 2.000” 4.510” Pack Off Sub for Slick Stinger 6,609’ 4,563’ NA 4.490” GP Wash Down Shoe A-3 3,393'3,400'2,861'2,867'7'08/29/20 Open A-5 3,465'3,472'2,926'2,932'7'08/29/20 Open A-5 3,505'3,510'2,962'2,967'5'08/29/20 Open A-5 3,527'3,578'2,982'3,030'51'08/29/20 Open B-1 3,770'3,776'3,212'3,217'6'08/29/20 Open Rig Start Date End Date Eline 8/29/20 8/29/20 PJSM & Permits. MIRU ELU on M-10. Test wire, good. Make up Gun #1, 6', 2 3/8" carrier w/11gram razor low swell charges 60 deg phasing 5 spf. PT lubricator & WLV 250/1500 repair leaks as needed, tested good. RIH t/4000' log up to 3,000', send logs to town for correlation adjustments. Adjust 1' as requested. Approved by RE to shoot 3770'-3776'. RIH & log up t/CCL depth 3751.6', CCL t/top shot 18.4', CCL t/btm shot 24.4'. 28 psi ITP @1.3MM. Shoot Tyonek B1 3770'-3776'. No change in pressure or flow. FTP 28 psi, log up 200'. POOH. At surface, shut in well, bleed down, pop off well. Dry gun. Make up Gun #2, 25' 2 3/8" carrier w/11gram razor low swell charges 60 deg phasing 5 spf. Stab on well, open well, RIH t/3700' log up t/ 3300', send log to town for correlation adjustments. Approved by RE. RIH & log up t/CCL depth 3542.7', CCL t/ top shot 10', CCL t/ bottom shot 35.3'. ITP flowing 27 psi @ 1.3mm, Shoot 3553'-3578', no change in pressure or flow. FTP 28 psi, log up 200'. POOH. At surface, shut in well, bleed down, pop off well. (Dry gun). Make up Gun #3, 26' 2 3/8" carrier w/11gram razor low swell charges 60 deg phasing 5 spf. RIH t/3700', log up to 3300'. Send log in for correlation adjustments. Got approval to shoot Tyonek A5 3527'-3553' (RE). RIH & log up t/CCL depth 3517.8'. CCL T/top shot 9.2', CCL t/ bottom shot 35.5'. 27.4 psi ITP flowing @1.25mm. Shoot Tyonek A5 3527'-3553'. No change in psi or flow. FTP 27.4 psi. Log up 200', POOH. At surface, shut in well, bleed down, pop off well. Dry gun. Make up Gun #4, 5', 2 3/8" carrier w/11gram razor low swell charges 60 deg phasing 5 spf. RIH to 3700', log up to 3300'. Send log to town for correlation adjustment. Approved to shoot Tyonek A5 3505'- 3510' (RE) RIH & log up t/CCL depth 3486', CCL t/ top shot 19', CCL t/ btm shot 24', 28 psi ITP flowing @ 1.368mm. Shoot Tyonek A5 3505'-3510', no change in pressure or flow, FTP 28, log up 200', POOH. At surface, shut in well, bleed down, pop off well. Dry gun. Make up Gun #5, 7' 2 3/8" carrier w/11gram razor low swell charges 60 deg phasing 5 spf. RIH to 3700', log up to 3300'. Send log to town for correlation adjustment. Approved to shoot Tyonek A5 3465'-3472' (RE) RIH & log up t/CCL depth 3444', CCL t/top shot 21', CCL t/btm shot 28'. 28 psi ITP flowing @ 1.3mm. Shoot Tyonek A5 3465'-3472', no change in psi or flow, FTP 28, log up 200' POOH. At surface, shut well, bleed down pop off well, Dry gun. Make up Gun #6, 7' 2 3/8" carrier w/11gram razor low swell charges 60 deg phasing 5 spf. RIH to 3400', log up t/3100'. Send log to town for correlation adjustment. Approved to shoot Tyonek A3 3393'-3400' (RE). RIH & log up t/ CCL depth 3372', CCL t/top shot 21', CCL t/bottom shot 28'. 28 psi ITP flowing @ 1.3mm. Shoot Tyonek A3 3393'-3400', no change in psi or flow. FTP 28 psi, log up 200'. POOH. At surface, shut well, bleed down, pop off well. Dry gun. RD ELU, ship crew to the beach. 08/29/20 - Saturday Daily Operations: Hilcorp Alaska, LLC Well Operations Summary API Number Well Permit NumberWell Name M-10 50-733-20588-00 209-154 1. Operations Abandon Plug Perforations Fracture Stimulate Pull Tubing Operations shutdown Performed: Suspend Perforate Other Stimulate Alter Casing Change Approved Program Plug for Redrill Perforate New Pool Repair Well Re-enter Susp Well Development Exploratory Stratigraphic Service 6. API Number: 7. Property Designation (Lease Number): 8. Well Name and Number: 9. Logs (List logs and submit electronic data per 20AAC25.071):10. Field/Pool(s): 11. Present Well Condition Summary: Total Depth measured 7,520 feet N/A feet true vertical 4,554 feet N/A feet Effective Depth measured 7,520 feet See schematic feet true vertical 4,554 feet See schematic feet Perforation depth Measured depth 3,804 - 7,520 feet True Vertical depth 3,244 - 4,554 feet Tubing (size, grade, measured and true vertical depth)3-1/2" 9.2 & 9.3 / L-80 4,110 MD 3,531 TVD Packers and SSSV (type, measured and true vertical depth)See schematic 12. Stimulation or cement squeeze summary: Intervals treated (measured): Treatment descriptions including volumes used and final pressure: 13. Prior to well operation: Subsequent to operation: 15. Well Class after work: Daily Report of Well Operations Exploratory Development Service Stratigraphic Copies of Logs and Surveys Run 16. Well Status after work: Oil Gas WDSPL Electronic Fracture Stimulation Data GSTOR GINJ SUSP SPLUG Sundry Number or N/A if C.O. Exempt: Contact Name: Authorized Title: Contact Email: Contact Phone: TVD measured true vertical Packer Other: G/L Completion N2 Operations / CT 7" 5,789 MD 490 1,402 measured 3800 Centerpoint Dr, Suite 1400 Anchorage, AK 99503 3. Address: 4. Well Class Before Work: 0 Representative Daily Average Production or Injection Data 780 Casing Pressure STATE OF ALASKA ALASKA OIL AND GAS CONSERVATION COMMISSION REPORT OF SUNDRY WELL OPERATIONS 209-154 50-733-20588-00-00 Plugs ADL0018730 Trading Bay Unit M-10 17. I hereby certify that the foregoing is true and correct to the best of my knowledge. 320-226 31 Authorized Signature with date: Authorized Name: 0 WINJ WAG 14. Attachments (required per 20 AAC 25.070, 25.071, & 25.283) 0 Gas-Mcf 160 N/A Oil-Bbl 410 Water-Bbl Intermediate N/A Junk 5. Permit to Drill Number: 1,229 McArthur River Field / Middle Kenai Gas PoolN/A measured 5,789 Size 8 Production Casing Structural Liner Length 490 1,402 Conductor Surface 5,410psi 32" 13-3/8" 907 777-8384 7,240psi 490 1,375 4,537 Collapse Karson Kozub kkozub@hilcorp.com Tubing Pressure 2,260psi5,020psi Hilcorp Alaska, LLC 2. Operator Name Senior Engineer: Senior Res. Engineer: Daniel E. Marlowe Operations Manager Burst N2 Form 10-404 Revised 3/2020 Submit Within 30 days of Operations By Samantha Carlisle at 9:19 am, Aug 10, 2020 Digitally signed by Dan Marlowe (1267) DN: cn=Dan Marlowe (1267), ou=Users Date: 2020.08.07 13:38:35 -08'00' Dan Marlowe (1267) 490 1,402 SFD 8/10/2020DSR-8/10/2020 RBDMS HEW 8/10/2020 gls 9/9/20 Updated By: JLL 08/07/20 SCHEMATIC Trading Bay Unit Steelhead Platform Well: M-10 PTD: 209-154 API: 50-733-20588-00 Completed: 06/14/20 PBTD: 7,520’ TD:7,520’ 32” RKB: 78’, RKB to MSL: 160.2’, RKB to Mudline: 345’ B-1 3 4 5 6 7 8 9 10 11 12 13-3/8” 7” 1 2 Cut Tbg @4,747’ ELM 6/10/20 13 4.5” wire wrap screen TD @ 6611’ MD 6 1/8” Open Hole 7” Casing in 9 1/4” Hole 4.5” wire wrap screen MAX HOLE ANGLE = 91.89q @ 7042’ MD B-3 B-5 Fish @ 5,466’ MD 12’ Overall Length X SC-1 Packer @ 4783’ MD Swell Packer @ 4902’ MD Swell Packer @ 4910’ MD 13 3/8” in 17 ½” Hole Est TOC @ 300’ Stage Collar @ 4833’ MD ECP Stage Collar @ 411’ X Casing &Tubing Detail SIZE WT GRADE CONN MIN ID TOP BTM (MD) BTM (TVD) 32” X-56 Welded 30” Surface 490’ 490’ 13-3/8” 68 L-80 BTC 12.415 Surface 1,402’ 1,376’ 7” 26 L-80 H-563 6.276 Surface 5,789’ 4,536’ Tubing Detail 3 1/2 9.3 L-80 IBTM 2.992 Surface 3,716’ 3,160’ 3 1/2 9.2 L-80 TC-II 2.992 4,747’ 4,783’ 4,110’ PERFORATION DETAIL Zone Top (MD) Btm (MD) Top (TVD) Btm (TVD)FT Date Status B-1 3,804’ 3,814’ 3,244’ 3,253’ 10’ 07/12/20 Open B-1 3,820’ 3,834’ 3,259’ 3,272’ 14’ 07/12/20 Open B-3 3,893’ 3,969’ 3,328’ 3,399’ 76’ 07/12/20 Open B-5 4,136’ 4,171’ 3,555’ 3,587’ 35’ 07/11/20 Open B-5 4,176’ 4,209’ 3,592’ 3,622’ 33’ 07/11/20 Open Open hole sands produced through screens D-2 5,789’ 6,611’ 4,537’ 4,563’ 822’ 2010 Screened open hole D-2 6,611’ 7,520’ 4,563’ 4,554’ 909’ 2010 Open Hole below screens Jewelry Detail No Depth MD Depth TVD ID OD Item 73.24 73.24 Vetco Gray Hydril 563 Type H BPV Profile Hanger 1 448’ 448’ 2.812” 5.375”SSSV – Baker TE-5 2 1,736’ 1,651’ 2.867” 5.313” GLM #1 - PSPO-1M (Live) 3 2,474’ 2,172’ 2.867” 5.313” GLM #2 - PSPO-1M 4 2,528’ 2,209’ 2.990” 6.000” DLH Packer 5 2,573’ 2,240’ 2.810” 4.250” X Nipple w/RHC Plug 6 3,716’ 3,160’ 3.390” 4.290” WLEG 7 4,352’ 3,753’ 5.00” 5.87” PBR 8 4,356’ 3,757’ 4.00” 5.87” Liner Top Packer 9 4,393’ 3,790’ 2.992” 3.500” X Nipple w/ RHCP Plug 10 4,744’ 4,081’ 3.000” 4.750” Tubing Overshot 11 4,783’ 4,109’ 4.000” 6.000” 7” SC-1 Production Packer 4,789’ 4,114’ 3.990” 5.010” Seal Bore Extension 4,793' 4,116’ 4.710” 5.520” Retrieving Extension 4,800’ 4,121’ 3.110” 5.810” Fluid Loss Control Valve 4,809’ 4,128’ 3.958” 4.530” 4.5”,12.6 lb/ft TC-II Blank Pipe 12 4,902’ 4,192’ 4.000 5.75” Weatherford swell packer 13 4,910’ 4,197’ 4.000 5.75” Weatherford swell packer 4,922’ 4,205’ 3.958” 4.530” 4.5”,12.6 lb/ft TC-II Blank Pipe 5,300’ 4,405’ 3.540” 4.450” 4.0” BakerWeld 12 Ga Screen 5,713’ 4,520’ 3.958” 4.530” 4.5”,12.6 lb/ft TC-II Blank Pipe 5,747’ 4,528’ 3.540” 4.450” 4.0” BakerWeld 12 Ga Screen 5,786’ 4,536’ 3.958” 4.530” 4.5”,12.6 lb/ft TC-II Blank Pipe 6,042’ 4,561’ 3.540” 4.450” 4.0” BakerWeld 12 Ga Screen 6,605’ 4,563’ 2.000” 4.510” Pack Off Sub for Slick Stinger 6,609’ 4,563’ NA 4.490” GP Wash Down Shoe B-1 3,804’ 3,814’ 3,244’ 3,253’ 10’ 07/12/20 Open B-1 3,820’ 3,834’ 3,259’ 3,272’ 14’ 07/12/20 Open B-3 3,893’ 3,969’ 3,328’ 3,399’ 76’ 07/12/20 Open B-5 4,136’ 4,171’ 3,555’ 3,587’ 35’ 07/11/20 Open B-5 4,176’ 4,209’ 3,592’ 3,622’ 33’ 07/11/20 Open new perfs Updated By: JLL 08/07/20 SCHEMATIC Trading Bay Unit Steelhead Platform Well: M-10 PTD: 209-154 API: 50-733-20588-00 Completed: 06/14/20 Logging Detail Hole Section LWD/MWD Wire Line Mud Logging Notes 17 ½ gMWD, GR/RES Gas On Site Geologist 9 1/4 Triple Combo/ PWD USIT F/400’– 5350’Mudlog On Site Geologist 6 1/8”Triple Combo PWD Mudlog On Site Geologist Cementing Information Description Volume (bbls) Density (ppg)Yield (ft3/sx) Notes Surface 1st stg 152/136 13.2/14.0 1.83/1.61 Tail 13.6-14.0 ppg Surface 2nd stg 260 13.2 1.83 Plug Bumped 1600 psi Production 1st stg 53 14.0 1.61 Lost returns Production 2nd stg 276 13.2 1.83 Trace cement to surface Rig Start Date End Date HAK 404/Wireline/CT 6/8/20 7/12/20 06/10/2020 - Wednesday Set stairs t/rig floor, install wind walls, set beaver slide, Dress out rig floor, p/u handling tools, function test BOPE Good,M/U 3 1/2" test joint, fill stack & surface eq. shell test 250/2500 good,Organize deck, prep to l/d pipe while waiting on arrival of AOGCC inspector,Test BOPE as per Hilcorp & AOGCC requirements, test witnessed By AOGCC inspector Matt Herrera, (also conducted a rig inspection), tested with 3 1/2" test joint, 250/2500,R/D test eq. R/U landing joint & back out ULDS. Hanger pull free at 45K. Set string in tension w/ 50K.,Rig up E-line & RIH to 4755' ELM, w/ CCL, ta gging AA stop set. Pull up to 4747' & perform cut. POOH & rig down E- line. Pull hanger to the floor & lay down same.POOH laying down 3-1/2" tubing to 4479' MD, PU 40K. Continue POOH f/ 4479'- 363' MD. Lay down TRSSV, 2 GLM's. Hilcorp Alaska, LLC Well Operations Summary API Number Well Permit NumberWell Name M-10 50-733-20588-00 209-154 R/D lubricator & circulating lines. Well Static. Install BPV. N/D tree. Prep wellhead, check lift threads, install blanking sub, N/U riser, mud cross, double gate, annular, stripper head, Tq flanges. Arrange decks, spot accumulator, test pump, catwalk, unload boat w/ e- line unit, flying pipe rack, secure stack, reroute lines on deck. Continue to reroute lines on deck, prep deck for unloading boat, finish work on rig floor stabilizing legs, function test Hawk Jaws, & function test BOP equipment. Unload boat w/ 161 joints of 3-1/2" PH-6; 130 joints of 3-1/2" IBT; 15 joints of 3-1/2" EUE; & misc. equi pment. Inspect derrick for raising mast. Raise mast and pin to structure. Scope 2nd stage of mast till dogs engage, verify dogs set, and pin dogs. Straighten out lines & tension guidelines. Prep and i nstall rig floor. Install rig floor, stairs, slide, & wind walls. R/U wireline. PT lubricator 250/1500 good. RIH retrieve K-valve @448'. RIH latch fish @ 4743' WLM, wk down hole t/5466' WLM, shake off. POOH. RIH w/ AD-2 stop set @ 4774' WLM. RIH w/Weatherford packoff & set @ 4772' WLM. RIH w/AA-stop t/4771' WLM, POOH. R/U, PT plug t/900psi w/gas 30 min good. RIH & set catcher at 4768' WLM, POOH. RIH w/ kick over, latch onto GLM #3 at 4706' WLM, POOH. Rig down wire line, lay down tool string & upper section of lubricator. Rig up to circulate down the tubing taking returns from IA. Rig up hose from IA to degasser. Rig up hose from pump to lubricator. Pump 250 bbls. down the tubing, taking returns from IA at .5-1.5 bpm, FCP 210 psi. Monitor well, stati c. Rig down lubricator, hoses, & equipment. 06/09/2020 - Tuesday 06/08/2020 - Monday Daily Operations: 06/11/2020- Thursday Cont. POOH l/d 3 1/2" completion to cut. L/D total 143 jts, 3-GLM's, 1 SSSV, pups, & 4.8' cut jt. C/O handling tools, M/U clea nout BHA, - Bit, scraper, bit sub = 6.94'. TIH, P/U 3 1/2" PH6 work string t/tag top of cut @ 4746', up wt 51k dn wt 41k. Reverse CBU cl ean @ 3.25BPM, 226 PSI. POOH stand back 3 1/2" work string & lay down clean out assembly. Rig up to run 3-1/2" lower completion. RIH w/ overshot, 12 jts of 3-1/2" EUE, & X nipple to 357' MD. Mobil ize packer to rig floor. Make up packer & XO to 3-1/2" PH6. RIH on 3- 1/2" DP f/ 357' - 4741' MD, SO 42K, 40 fpm. P/U space out pups. & function test BOP equipment ,Test BOPE as per Hilcorp & AOGCC requirements, test witnessed By AOGCC inspector Matt Herrera, Cont. POOH l/d 3 1/2" completion to cut. L/D total 143 j ts, 3-GLM's, 1 SSSV, pups, & 4.8' cut j t. C/O handling tools, M/U clea nout BHA, Rig Start Date End Date HAK 404/Wireline/CT 6/8/20 7/12/20 Hilcorp Alaska, LLC Well Operations Summary API Number Well Permit NumberWell Name M-10 50-733-20588-00 209-154 Daily Operations: 06/12/2020 - Friday Cont. Space out, up wt 48k, dn wt 41k. Pump .8 BPM slide over tubing cut pressure increased t/300 shut down pump cont slide over stump tag top sub, p/u string weight & p/u .75' placing top of assembly @ 4351'. Drop bar pressure up t/3800 hold for 30 min to set packer. Bleed off pressure, p/u t/68k, slack off t/21k, to veri fy slips set, p/u neutral, pressure up t/3800psi hold for 30 mi n, bump pressure up as needed. R/U test annulus/packer 1500 good, bleed down, turn string to release running tool, l/d space out pups. POOH l/d 3 1/2" work string. Break down & l/d running tool, c/o handling eq. for running 3 1/2" completion. Run 3-1/2", 9.3#, L-80, ITBM upper completion: WLEG, RHC plug, packer, 2 GLMs, to 3259' MD, PU 24K, SO 28K. PU SSSV, rig up control line & equipment. Install control line & pump up to 5000 psi. Continue RIH f/ 3259'-3636' MD. PU XO pup & hanger. Make up control line penetration through hanger. Make up landing joint. Land hanger at 3716' MD. RILDS. Ran a total of 15 stainless steal bands. Drop ball & rod. RU & pressure up tubing to 3800 psi & hold for 30 minutes to set packer @ 2527', tubing tail @ 3716'. Attempt test tubing had 1000 psi drop in 2 min, work on diagnosing surface eq. & mobe out w/l tools to diagnose downhole. 06/13/2020 - Saturday Cont. Diagnose test issues, change out landing joint, r/u w/l & test had same bleed off 2500 to 1500 in 2 min. W/L rih latch ball/rod, p/u off seat flush re-set & test with same results. POOH had lost rod, made 2 more attempts no joy recovered on 3rd run after changing out tools. RIH w/ D& D hole finder, set on RHCP plug @ 2527'. Pressure up t/2100 pressure bleeding off, bled off pres sure, tapped down on plug, staged up 500 psi increments, held good pressure up to 1500 psi leaked when we went up to 2000 psi. Bled down tapped on plug & pressured up staging up & had same results. POOH with D&D plug, RIH retrieve RHCP PLug, build PX plug & rih. RIH w/ PX plug, set down in safety valve @ 448' & sheared off POOH redress running tool. RIH recover PX plug, clean up pa cking & set dogs, re-run down to GLM area set down & work, sheared off, POOH. Redress running tool. RIh & recover, POOH. Buff down packing on PX plug, re-pin, RIH below x nipple @ 2572' pull back up & set, shear off POOH. RIH w/ Prong & set PX nipple. Attempt test staging up 500 psi increments to 2750 psi. Had bleed off at eac h stage of 50-100 psi in 1-2 min. Rig up on IA & test to 1500, good. POOH with prong. RIH w/ redressed D&D plug at 2570' & set. Rig up & test tubing, staging up in 500 psi increments to 2650 psi. Chart test for 30 minutes, good. Lock in tubing pressure & pressure up on IA to 1700 psi. Chart IA test for 30 minutes, good. Rig down test equipment. Pull D&D plug to surface and rig down. RIH & latch up plug at 2572' WLM POOH. RIH to 4398' WLM latch RHCP prong & POOH. RIH to 4398' WLM latch plug body & POOH. Rig down wire li ne equipment. Pull landing joint and break off pups with XO. Ri g up & set BPV. Clear rig floor. Remove slide, stairs, & wind wal ls. Rig down floor. Rig up & test tubing, staging up in 500 psi increments to 2650 psi.Cha rt test for 30 minutes, good. Lock in tubing pressure & pressure up on IA to 1700 psi. Chart IA test for 30 minutes, good. Rig Start Date End Date HAK 404/Wireline/CT 6/8/20 7/12/20 Hilcorp Alaska, LLC Well Operations Summary API Number Well Permit NumberWell Name M-10 50-733-20588-00 209-154 Daily Operations: 06/24/2020 - Wednesday PJSM & permits. Rig up Coil Unit. Spot bridge over M-10. MU 4-1/16" flanged riser. Run power from genset to Ops Cab & tool connex. Run hydraulic lines from power pack & hose reel to CTU reel & BOPs. Spot N2 tanks in containment. Mount gooseneck to injector. Stab 1.75" coil tubing in injector, run coil completely thru chains & stripper assy. Rig up N2 to pump-in sub. Rig return lines from CT to choke manifold and flowback. Test BOPE as per Hilcorp & AOGCC requirements, witnessed waived 6/22/2020 by AOGCC inspections Supervisor Jim Regg, 250/4000. SDFN. Job in Progres s. 06/25/2020- Thursday 06/14/2020 - Sunday Prep Mast & scope down. Prep Mast to laydown, tie off blocks, unspool draworks, tugger's & manrider. Lay out guy lines, etc. L/d mast. N/D BOPE, pull riser & break down. N/u tree & valves. SIMOPS continue rigging down & prep mast for removal. Test void to 250 / 5000 for 5 / 10 minutes each, good. Install production header. Test tree to 250 psi low for 5 minutes, good. Pressure up to 5000 psi & observe leak at swab valve stem. Grease & add packing to valve stem. Retest tree to 5000 psi for 10 minutes good. Pull two way check. SIMOPS continue demobilization of rig. Prep mast & drawworks for removal. Pull mast & stage for boat. Remove & stage on deck for boat; drawworks, stairs / landings, carrier, carrier s preaders, and carrier beams. Load out carrier & beams on boat. PJSM & permit. RU injector, lubricator, and BOPE. Stab on well. Begin full body pt on riser and lubricator. 250/ 4000. Open well, Swab 20. WHP 0, IA 0. RIH with (1.75" x .23' CC) ( STINGER 2" X 3.5') ( XO 2" X .033') ( XO 2" X .5') ( BDJSN 2.23" X .58') TOL= 4.843',WT CK 2,000'= 2K. Come online with N2 down the tubing up the coil. Start building some whp. Got WHP up to 1500 psi. Park coil at 4340' ctmd, wait here till we start getting some fluid back to tank. Start getting fluid back to tank, whp 2841 psi, ctp 117, RIH to find a tag. Tagged at 4670' CTMD. 4746' RKB. PU TO 4670' CTMD. LET FLUID AND N2 COME AROUND TO THE TANKS. N2 back to tanks. Got total of 81 bbls back to tank. shut N2 down for 2.5 hr. with hopes the fluid will fall out from the ia of the 3.5" x 7" at the poor boy vershot. WHP 53, CTP 23, IA 0. Come back online with N2 down the well taking returns up the coil to the return tank. Just getting N2 back to the tank. Come offline with N2, POOH. Tagged up, swab shut 20, WHP 727, IA 0. Rig off lubricator, stack lubricator and injector down so slickline can rig up. MIRU SL. RIH with 2.70" LIB to top of fish at 4774' SLM. Work tool, OOH, picture of partial fish neck & possible junk. Make up (2) 25" pump bailer, RBIH to 4770' KB. OOH empty. RBIH w/ 1-1/4" Eq. Prong to 4771' KB. Work Tools. No pressure change. Stuck once, spang out. POOH w/ marks on prong from fishing neck. Make up 1.25" bailer. RIBH set down at 4773', work tools to 4774' KB. OOH w/ 4" debris & metal chunks. Bailer bottom plugged tight w/ metal pieces. SDFN. Job in Progress. Rig up Coil Unit. Spot bridge over M-10. MU 4-1/16" flanged ri ser. Rig Start Date End Date HAK 404/Wireline/CT 6/8/20 7/12/20 Hilcorp Alaska, LLC Well Operations Summary API Number Well Permit NumberWell Name M-10 50-733-20588-00 209-154 Daily Operations: 06/28/2020 - Sunday PJSM. Get work permit from ops. Begin rig down of Coil unit. Coil rigged down, wait on boat to get here to back load. Working MV Titan, backloading CTU package. Call for 18:00 helicopter. Heli copter arrives, fly CTU crew to Tyonek Platform. CTU operations complete. Job in Progress. 06/26/2020 - Friday PJSM & permit. MU SL toolstring w/ 1-1/4" DD Bailer. RU SLU to WH w/ X-over to CTU BOPs. RIH w/ 1-1/4" DD Bailer to 4774' KB. Work Tool. OOH w/ casing scrapings & small metal chunks. RBIH w/ 3" GS to 4771' KB, latch A-Stop. Spang lick 20 times followed by 40 Oil Jar licks, can't come free. Shear off, POOH. Slipcut 250' of wire. Add 5' of weight bar. RIH w/ 3" GS to 4771' KB. 30 spang licks followed by 30 Oil Jar licks. No movement. Shear off & POOH. Ca ll for boat to pick up coil fishing tools @ Tyonek & Quadco tool hand to mob out for morning flight out. Fly SL bait sub to platform to run SL GS on CT BHA. OOH. Rig SLU off well & lay down lubricator. Slipcut 100' wire, rehead & clean worksite. Dress 3" GS spear w/ steel pin prepping for coil run w/ spear. Job in Progress. 06/27/2020 - Saturday PJSM. Get work permit. Pick up injector head & 20' lubricator. Make up CC. Pull test 30k, make up rest of fishing string.(1.75 " coil .156 Wall Thickness)(CC 2" X .30')(XO 2.13" X .67')(DFCV 2.13" X 1.70')( TTS INTENSIFIER 2.13" X 3.83')( WT BAR 2.13" X 4.90')( BI DIRECTIONAL JAR 2.25" X 3.87')( TJ DISCONNECT 2.13" X 1.58')( PORTED XO2.13" X .50') (S/L GS 2.71" X .96') TOL=18.88'. Open well, swab 20 turns, WHP 888, IA 0. RIH#1 WT CK 3500'=2000LBS. CRIH Latch into fish @ 4700' CTMD. PU 20K Wait for jar lick, jar hit, straight pull to 40k. RBIH to cock jars, pick up to 20k, wait for jar hit, jars hit about the same time we got to wt. WT fell off to 4k. Pooh put daylight on fish. OOH no fish recovered. S/L GS sheared. Make up second S/L GS, stabbed on well. Open well, swab 20. RIH, RUN #2, RIH ( CC 2" X .30')( XO 2.13" X .67')(DFCV 2.13" X 1.70')( TTS INTENSIFIER 2.13" X 3.83')( WT BAR 2.13" X 4.90')( BI DIRECTIONAL JAR 2.25" X 3.87')( TJ DISCONNECT 2.13" X 1.58')( PORTED XO2.13" X .50') (S/L GS 2.71" X .96'). Tag @ 4704' CTMD, PU to fire j ars, jar hit straight pull to 40k, wt broke back. POOH check tools, S/L GS sheared again. RUN #3, Pined up S/L PR spear. Head to well, stabbed on well. RIH Tag fish @ 4704' CTMD, PU clean, RBIH make it to 4716' CTMD. Pu clean, pooh check tools. AA2 stop recovered. RUN #4, head to well, stabbed on well, RIH with S/L PR spear. Tag fish at 4714' ctmd, PU 15k, appears we have packoff. Let relax for 30 min. WHP went from 355 to 87 psi. OOH recovered Pack off, (missing element). RUN #5, RIH with PR Spear, tag at 4718' ctmd, pu got 18k overpull, pooh, ooh with AD2 stop. Final WHP 89, IA 0. Rig down iron, lubricator, Injector head. SDFN. Turn well over to production to BOL. 07/10/2020 - Friday Eline crew arrived to Steelhead. Orientation, PJSM with crane operator and ops. MIRU ELU, Spot auxiliary equipment and rehead wire. SDFN LLC Well Rig Start Date End Date HAK 404/Wireline/CT 6/8/20 7/12/20 Hilcorp Alaska, LLC Well Operations Summary API Number Well Permit NumberWell Name M-10 50-733-20588-00 209-154 Daily Operations: 07/11/2020 - Saturday Morning meeting with Ops. Get work permit, PSJM. PU lubricator, make up gamma/CCL, Test wire. Make up 21', 2" 6spf, 60*, 11grm razor gun. Stab on well, PT low 250, High 2500. Open well. Swab 20 turns, WHP 30, IA 8, OA 28. RIH GUN #1, 21', 2" 6spf, 60*, 11grm razor gun. Log up from 4420 to 3600', download data, send to town for confirmation. Got the okay to shoot. PUH to 4179.7' CCL Depth. CCL-To- Top shot 9.3', CCL-To-Bottom shot 29.1'. Shoot Tyonek B5 4189'-4209' RKB. No change in WHP. POOH, OOH, swab shut, bleed down, pop off well. All shots fired. Rig down spent gun, redress Teardrop. Test connectivity. Make up GUN #2, 13' 2" 6spf, 60*, 11grm razor gun. Head to well, stabbed on well, Open up, WHP 30, IA 8, OA 28. RIH to 4300' PUH to get on depth. Park at CCL Depth 4165.8'. CCL-To-top shot 10.2, CCL-To- bottom shot 23.2'. Perf Tyonek B5 4176'-4189' RKB. Log up 200'. POOH, Tagged up, swab shut, bleed down, pop off well, all shots fired. Rebuild Teardrop, Test connectivity. Make up Gun #3, 20', 2", 6spf, 60*, 11grm razor gun. Open well, Swab 20, WHP 30, IA 8, OA 28. RIH to 4400', pu making sure we are on depth to 4141.7' CCL depth. CCL-To-top shot=9.3', CCL-To-bottom shot 29.8'. Perf Tyonek B5 4151'-4171'. No change in WHP. Log up 200'. POOH, Tagged up with Gun#3, swab shut, bleed down, pop off well. All shots fired. Break teardrop off gun and rebuild it. Test connectivity, Make up Gun #4, 15', 2", 6spf, 60*, 11grm razor gun. Stabbed on well, Open Swab 20 turns. WHP 30, IA 8, OA 28. RIH to 4400', pu making sure we are on depth to CCL depth 4121.8'. CCL-to-top shot 14.2', CCL-to-bottom shot 29.2'. Perf Tyonek B5 4136'-4151'. No change in whp. Log up 200'. POO H, Tagged up, swab shut, bleed down, pop off well, all shots fired. Rebuild teardrop, test connectivity, Make up GUN #5, 20', 2", 6spf, 60*, 11grm razor gun. Stab on well, open swab 20 turns, WHP 30, IA 8, OA 28. RIH to 4400'. PU getting on depth to CCL Depth 3936.4'. CCL-to-top shot 12.6', CCL-to-bottom shot 32.5'. Shoot Tyonek B3 3949'-3969'. No change in WHP. Log up 200'. POOH, Tagged up, swab shut, bleed down, pop off well. All shots fired. Test Eli ne. Make up Gun #6, 20', 2", 6spf, 60*, 11grm razor gun. Stabbed on well, open swab 20 turns. WHP 30, IA 8, OA 28, RIH to 4400'. Log up getting on depth to 3916.4' CCL depth. CCL-to-top shot 12.6', CCL-to- bottom shot 32.5'. Perf Tyonek B3 from 3929'-3949', WHP came up so they opened the choke 3% now getting 1mmscf, up from 870,000, log up 200'. POOH, Tagged up, swab shut, bleed down, pop off well. All shots fired. Test connectivity. Make up Gun #7. 20', 2", 6spf, 60*, 11grm razor gun. Stab on well, open well, swab 20 turns, WHP 30, IA 8, OA 28. RIH to 4400', log up getting on depth to CCL depth 3896.4'. CCL-to-top shot 12.6', CCL-to-bottom shot 32.4'. Shoot Tyonek B3 from 3909'-3929', no change in whp, log up 200' POOH, Tagged up, swab shut, bleed down, pop off well. All shots fired. Test connectivity, Make up Gun #8, 16', 2", 6spf, 60*, 11grm razor gun. Stab on well, open well, swab 20, WHP 30, IA 8, OA 28. RIH. Got down to 4400' started logging up and we lost our gamma tool. POOH to break down tools. Tagged up, swab shut, bleed down, pop off well. Break down Live gun, take off gamma/ccl. Secure wellhead and area for the night. SDFN. Rig Start Date End Date HAK 404/Wireline/CT 6/8/20 7/12/20 Hilcorp Alaska, LLC Well Operations Summary API Number Well Permit NumberWell Name M-10 50-733-20588-00 209-154 Daily Operations: 07/12/2020 - Sunday Attend morning meeting, get permit signed, PJSM. Waiting on tools, standby for weather. PU Lubricator, make up gamma/ccl, Test tools make sure they are working. PU Gun #8 Re run, 16', 2", 6spf, 60*, 11grm razor gun. Stabbed on well, swab open 20 turns , WHP 30, IA 8, OA 28, RIH to 4400', pu getting on depth to CCL depth 3881.5'. CCL-to-top shot 11.5', CCL-to-bottom shot 27.5'. Shoot Tyonek B3 3893'-3909'. No change in WHP. Log up 200' POOH, Tagged up, swab shut, bleed down, pop off well. All shots fired. Make up Gun #9, 14' 2", 6spf, 60*, 11grm razor gun. Stab on well, Open swa b 20 turns. WHP 30, IA 8, OA 28. RIH to 4100'. log up getting on depth to 3807.4' CCL depth. CCL-to-top shot 12.6', CCL-to-bottom shot 26.5'. Shoot Tyonek B1 3820'-3834', no change in WHP. Log up 200'. POOH, Tagged up, swab shut, bleed down, pop off well. All shots fired. Make up Gun #10, 10', 6spf, 60*, 11grm razor gun. Stab on well, Open swab 20 turns, WHP 30, IA 8, OA 28. RIH to 4100', Log up getting on depth to 3791.3' CCL depth. CCL-to-top shot 12.7', CCL- to-bottom shot 22.7'. Shoot Tyonek B1 3804'-3814'. No change in whp. Log up 200'. POOH, Tagged up, swab shut, bleed down, pop off well. All shots fired. No change in WHP. WHP 30, IA 8, OA 28. RD ELU. t 26.5'. Shoot Tyonek B1 3820'-3834', no change i 1.Type of Request: Abandon Plug Perforations Fracture Stimulate Repair Well Operations shutdown Suspend Perforate Other Stimulate Pull Tubing Change Approved Program Plug for Redrill Perforate New Pool Re-enter Susp Well Alter Casing 2.Operator Name:4.Current Well Class:5.Permit to Drill Number: Exploratory Development 3.Address: 3800 Centerpoint Drive, Suite 1400 Stratigraphic Service 6.API Number: 7. If perforating:8.Well Name and Number: What Regulation or Conservation Order governs well spacing in this pool? Will planned perforations require a spacing exception?Yes No 9.Property Designation (Lease Number):10.Field/Pool(s): McArthur River Field / Middle Kenai Gas Pool 11. Total Depth MD (ft): Total Depth TVD (ft): Effective Depth MD: Effective Depth TVD: MPSP (psi):Plugs (MD):Junk (MD): 7,520'N/A Casing Collapse Structural Conductor Surface 2,260 psi Intermediate Production 5,410 psi Liner Packers and SSSV Type:Packers and SSSV MD (ft) and TVD (ft): 12. Attachments: Proposal Summary Wellbore schematic 13. Well Class after proposed work: Detailed Operations Program BOP Sketch Exploratory Stratigraphic Development Service 14.Estimated Date for 15. Well Status after proposed work: Commencing Operations:OIL WINJ WDSPL Suspended 16.Verbal Approval:Date:GAS WAG GSTOR SPLUG Commission Representative: GINJ Op Shutdown Abandoned Contact Name: Contact Email:Katherine.oconnor@hilcorp.com Contact Phone: (907) 777-8376 Date: Conditions of approval: Notify Commission so that a representative may witness Sundry Number: Plug Integrity BOP Test Mechanical Integrity Test Location Clearance Other: Post Initial Injection MIT Req'd? Yes No Spacing Exception Required? Yes No Subsequent Form Required: APPROVED BY Approved by:COMMISSIONER THE COMMISSION Date: Comm.Comm.Sr Pet Eng Sr Pet Geo Sr Res Eng Other: 4,537'7"5,789' Authorized Title: 17.I hereby certify that the foregoing is true and the procedure approved herein will not be deviated from without prior written approval. 8/28/2020 3-1/2" Daniel E. Marlowe See schematic Perforation Depth MD (ft): 3,804 - 7,520 (Open Hole) 5,789' See schematic Tubing Grade:Tubing MD (ft): 3,244 - 4,554 (Open Hole) Perforation Depth TVD (ft): 9.2 & 9.3/ L-80 TVD 32" 13-3/8" 490' 1,402'5,020 psi 490' 1,375' 490' 1,402' Anchorage, AK 99503 Hilcorp Alaska, LLC Trading Bay Unit M-10 MDLength Size COMMISSION USE ONLY Authorized Name: Burst 4,110 7,240 psi Tubing Size: Authorized Signature: Operations Manager Katherine O'Connor CO 228A PRESENT WELL CONDITION SUMMARY N/A4,554' 7,520' 4,554' 228 psi STATE OF ALASKA ALASKA OIL AND GAS CONSERVATION COMMISSION APPLICATION FOR SUNDRY APPROVALS 20 AAC 25.280 ADL0018730 209-154 50-733-20588-00-00 Form 10-403 Revised 3/2020 Approved application is valid for 12 months from the date of approval. By Jody Colombie at 11:23 am, Aug 14, 2020 320-336 Digitally signed by Dan Marlowe (1267) DN: cn=Dan Marlowe (1267), ou=Users Date: 2020.08.14 10:48:57 -08'00' Dan Marlowe (1267) DSR-8/17/2020SFD 8/14/2020 Perforate GAS 10-404 gls 8/20/20 dts 8/20/2020 8/21/2020 Jessie L. Chmielowski Digitally signed by Jessie L. Chmielowski Date: 2020.08.21 08:32:45 -08'00' RBDMS HEW 8/24/2020 Well Work Prognosis Well Name:Trading Bay Unit M-10 API Number: 50-733-20588-00 Current Status:Gas Well Leg:A-1 (SW corner) Estimated Start Date:8/28/2020 Rig:E-Line Reg. Approval Req’d?403 Date Reg. Approval Rec’vd: Regulatory Contact:Juanita Lovett Permit to Drill Number:209-154 First Call Engineer:Katherine O’Connor Office: 907-777-8376 Cell: 214-684-7400 Second Call Engineer:Karson Kozub Cell: 907-570-1801 Current Bottom Hole Pressure:128 psi @ 3120’ TVD 0.041 psi/ft water gradient to surface Maximum Expected BHP:228 psi @ 3120’ TVD 0.073 psi/ft water gradient to surface Maximum Potential Surface Pressure:228 psi Brief Well Summary: Well M-10 is a gas well completed in D and B sands. The well had a recent RWO in July to recomplete in the B sands (and kept the existing completion from the D sands). The objective of this program is to go back in and perforate the B1 sand, as well as the A2, A3 and A5 sands. E-line Procedure: 1. MIRU E-line, PT lubricator to 1,500 psi Hi 250 Low. 2. Perforate with well flowing per program. 3. RD E-line. 4. Turn well over to production. Attachments: 1. Current Wellbore Schematic 2. Proposed Wellbore Schematic Updated By: JLL 08/07/20 SCHEMATIC Trading Bay Unit Steelhead Platform Well: M-10 PTD: 209-154 API: 50-733-20588-00 Completed: 06/14/20 PBTD: 7,520’ TD:7,520’ 32” RKB: 78’, RKB to MSL: 160.2’, RKB to Mudline: 345’ B-1 3 4 5 6 7 8 9 10 11 12 13-3/8” 7” 1 2 Cut Tbg @4,747’ ELM 6/10/20 13 4.5” wire wrap screen TD @ 6611’ MD 6 1/8” Open Hole 7” Casing in 9 1/4” Hole 4.5” wire wrap screen MAX HOLE ANGLE = 91.89q @ 7042’ MD B-3 B-5 Fish @ 5,466’ MD 12’ Overall Length X SC-1 Packer @ 4783’ MD Swell Packer @ 4902’ MD Swell Packer @ 4910’ MD 13 3/8” in 17 ½” Hole Est TOC @ 300’ Stage Collar @ 4833’ MD ECP Stage Collar @ 411’ X Casing &Tubing Detail SIZE WT GRADE CONN MIN ID TOP BTM (MD) BTM (TVD) 32” X-56 Welded 30” Surface 490’ 490’ 13-3/8” 68 L-80 BTC 12.415 Surface 1,402’ 1,376’ 7” 26 L-80 H-563 6.276 Surface 5,789’ 4,536’ Tubing Detail 3 1/2 9.3 L-80 IBTM 2.992 Surface 3,716’ 3,160’ 3 1/2 9.2 L-80 TC-II 2.992 4,747’ 4,783’ 4,110’ PERFORATION DETAIL Zone Top (MD) Btm (MD) Top (TVD) Btm (TVD)FT Date Status B-1 3,804’ 3,814’ 3,244’ 3,253’ 10’ 07/12/20 Open B-1 3,820’ 3,834’ 3,259’ 3,272’ 14’ 07/12/20 Open B-3 3,893’ 3,969’ 3,328’ 3,399’ 76’ 07/12/20 Open B-5 4,136’ 4,171’ 3,555’ 3,587’ 35’ 07/11/20 Open B-5 4,176’ 4,209’ 3,592’ 3,622’ 33’ 07/11/20 Open Open hole sands produced through screens D-2 5,789’ 6,611’ 4,537’ 4,563’ 822’ 2010 Screened open hole D-2 6,611’ 7,520’ 4,563’ 4,554’ 909’ 2010 Open Hole below screens Jewelry Detail No Depth MD Depth TVD ID OD Item 73.24 73.24 Vetco Gray Hydril 563 Type H BPV Profile Hanger 1 448’ 448’ 2.812” 5.375”SSSV – Baker TE-5 2 1,736’ 1,651’ 2.867” 5.313” GLM #1 - PSPO-1M (Live) 3 2,474’ 2,172’ 2.867” 5.313” GLM #2 - PSPO-1M 4 2,528’ 2,209’ 2.990” 6.000” DLH Packer 5 2,573’ 2,240’ 2.810” 4.250” X Nipple w/RHC Plug 6 3,716’ 3,160’ 3.390” 4.290” WLEG 7 4,352’ 3,753’ 5.00” 5.87” PBR 8 4,356’ 3,757’ 4.00” 5.87” Liner Top Packer 9 4,393’ 3,790’ 2.992” 3.500” X Nipple w/ RHCP Plug 10 4,744’ 4,081’ 3.000” 4.750” Tubing Overshot 11 4,783’ 4,109’ 4.000” 6.000” 7” SC-1 Production Packer 4,789’ 4,114’ 3.990” 5.010” Seal Bore Extension 4,793' 4,116’ 4.710” 5.520” Retrieving Extension 4,800’ 4,121’ 3.110” 5.810” Fluid Loss Control Valve 4,809’ 4,128’ 3.958” 4.530” 4.5”,12.6 lb/ft TC-II Blank Pipe 12 4,902’ 4,192’ 4.000 5.75” Weatherford swell packer 13 4,910’ 4,197’ 4.000 5.75” Weatherford swell packer 4,922’ 4,205’ 3.958” 4.530” 4.5”,12.6 lb/ft TC-II Blank Pipe 5,300’ 4,405’ 3.540” 4.450” 4.0” BakerWeld 12 Ga Screen 5,713’ 4,520’ 3.958” 4.530” 4.5”,12.6 lb/ft TC-II Blank Pipe 5,747’ 4,528’ 3.540” 4.450” 4.0” BakerWeld 12 Ga Screen 5,786’ 4,536’ 3.958” 4.530” 4.5”,12.6 lb/ft TC-II Blank Pipe 6,042’ 4,561’ 3.540” 4.450” 4.0” BakerWeld 12 Ga Screen 6,605’ 4,563’ 2.000” 4.510” Pack Off Sub for Slick Stinger 6,609’ 4,563’ NA 4.490” GP Wash Down Shoe Updated By: JLL 08/07/20 SCHEMATIC Trading Bay Unit Steelhead Platform Well: M-10 PTD: 209-154 API: 50-733-20588-00 Completed: 06/14/20 Logging Detail Hole Section LWD/MWD Wire Line Mud Logging Notes 17 ½ gMWD, GR/RES Gas On Site Geologist 9 1/4 Triple Combo/ PWD USIT F/400’– 5350’Mudlog On Site Geologist 6 1/8”Triple Combo PWD Mudlog On Site Geologist Cementing Information Description Volume (bbls) Density (ppg)Yield (ft3/sx) Notes Surface 1st stg 152/136 13.2/14.0 1.83/1.61 Tail 13.6-14.0 ppg Surface 2nd stg 260 13.2 1.83 Plug Bumped 1600 psi Production 1st stg 53 14.0 1.61 Lost returns Production 2nd stg 276 13.2 1.83 Trace cement to surface Updated By: JLL 08/12/20 PROPOSED Trading Bay Unit Steelhead Platform Well: M-10 PTD: 209-154 API: 50-733-20588-00 Completed: 06/14/20 PERFORATION DETAIL Zone Top (MD)Btm (MD) Top (TVD)Btm (TVD) FT Date Status A-2 ±3,210' ±3,247'±2,705' ±2,736' ±37' FUTURE PROPOSED A-2 ±3,255' ±3,283'±2,743' ±2,766' ±28' FUTURE PROPOSED A-3 ±3,393' ±3,400'±2,861' ±2,867' ±7' FUTURE PROPOSED A-5 ±3,465' ±3,472'±2,926' ±2,932' ±7' FUTURE PROPOSED A-5 ±3,505' ±3,510'±2,962' ±2,967' ±5' FUTURE PROPOSED A-5 ±3,527' ±3,578'±2,982' ±3,030' ±51' FUTURE PROPOSED B-1 ±3,770' ±3,776'±3,212' ±3,217' ±6' FUTURE PROPOSED B-1 3,804’ 3,814’ 3,244’ 3,253’ 10’ 7/12/2020 Open B-1 3,820’ 3,834’ 3,259’ 3,272’ 14’ 7/12/2020 Open B-3 3,893’ 3,969’ 3,328’ 3,399’ 76’ 7/12/2020 Open B-5 4,136’ 4,171’ 3,555’ 3,587’ 35’ 7/11/2020 Open B-5 4,176’ 4,209’ 3,592’ 3,622’ 33’ 7/11/2020 Open Open hole sands produced through screens D-2 5,789’ 6,611’ 4,537’ 4,563’ 822’ 2010 Screened open hole D-2 6,611’ 7,520’ 4,563’ 4,554’ 909’ 2010 Open Hole below screensPBTD: 7,520’ TD:7,520’ 32” RKB: 78’, RKB to MSL: 160.2’, RKB to Mudline: 345’ B-1 3 4 5 6 7 8 9 10 11 12 13-3/8” 7” 1 2 Cut Tbg @4,747’ ELM 6/10/20 13 4.5” wire wrap screen TD @ 6611’ MD 6 1/8” Open Hole 7” Casing in 9 1/4” Hole 4.5” wire wrap screen MAX HOLE ANGLE = 91.89q @ 7042’ MD B-3 B-5 Fish @ 5,466’ MD 12’ Overall Length A-2 A-3 A-5 X SC-1 Packer @ 4783’ MD Swell Packer @ 4902’ MD Swell Packer @ 4910’ MD 13 3/8” in 17 ½” Hole Est TOC @ 300’ Stage Collar @ 4833’ MD ECP Stage Collar @ 411’ X Casing &Tubing Detail SIZE WT GRADE CONN MIN ID TOP BTM (MD) BTM (TVD) 32” X-56 Welded 30” Surface 490’ 490’ 13-3/8” 68 L-80 BTC 12.415 Surface 1,402’ 1,376’ 7” 26 L-80 H-563 6.276 Surface 5,789’ 4,536’ Tubing Detail 3 1/2 9.3 L-80 IBTM 2.992 Surface 3,716’ 3,160’ 3 1/2 9.2 L-80 TC-II 2.992 4,747’ 4,783’ 4,110’ Jewelry Detail No Depth MD Depth TVD ID OD Item 73.24 73.24 Vetco Gray Hydril 563 Type H BPV Profile Hanger 1 448’ 448’ 2.812” 5.375”SSSV – Baker TE-5 2 1,736’ 1,651’ 2.867” 5.313” GLM #1 - PSPO-1M (Live) 3 2,474’ 2,172’ 2.867” 5.313” GLM #2 - PSPO-1M 4 2,528’ 2,209’ 2.990” 6.000” DLH Packer 5 2,573’ 2,240’ 2.810” 4.250” X Nipple w/RHC Plug 6 3,716’ 3,160’ 3.390” 4.290” WLEG 7 4,352’ 3,753’ 5.00” 5.87” PBR 8 4,356’ 3,757’ 4.00” 5.87” Liner Top Packer 9 4,393’ 3,790’ 2.992” 3.500” X Nipple w/ RHCP Plug 10 4,744’ 4,081’ 3.000” 4.750” Tubing Overshot 11 4,783’ 4,109’ 4.000” 6.000” 7” SC-1 Production Packer 4,789’ 4,114’ 3.990” 5.010” Seal Bore Extension 4,793' 4,116’ 4.710” 5.520” Retrieving Extension 4,800’ 4,121’ 3.110” 5.810” Fluid Loss Control Valve 4,809’ 4,128’ 3.958” 4.530” 4.5”,12.6 lb/ft TC-II Blank Pipe 12 4,902’ 4,192’ 4.000 5.75” Weatherford swell packer 13 4,910’ 4,197’ 4.000 5.75” Weatherford swell packer 4,922’ 4,205’ 3.958” 4.530” 4.5”,12.6 lb/ft TC-II Blank Pipe 5,300’ 4,405’ 3.540” 4.450” 4.0” BakerWeld 12 Ga Screen 5,713’ 4,520’ 3.958” 4.530” 4.5”,12.6 lb/ft TC-II Blank Pipe 5,747’ 4,528’ 3.540” 4.450” 4.0” BakerWeld 12 Ga Screen 5,786’ 4,536’ 3.958” 4.530” 4.5”,12.6 lb/ft TC-II Blank Pipe 6,042’ 4,561’ 3.540” 4.450” 4.0” BakerWeld 12 Ga Screen 6,605’ 4,563’ 2.000” 4.510” Pack Off Sub for Slick Stinger 6,609’ 4,563’ NA 4.490” GP Wash Down Shoe Updated By: JLL 08/12/20 PROPOSED Trading Bay Unit Steelhead Platform Well: M-10 PTD: 209-154 API: 50-733-20588-00 Completed: 06/14/20 Logging Detail Hole Section LWD/MWD Wire Line Mud Logging Notes 17 ½ gMWD, GR/RES Gas On Site Geologist 9 1/4 Triple Combo/ PWD USIT F/400’– 5350’Mudlog On Site Geologist 6 1/8”Triple Combo PWD Mudlog On Site Geologist Cementing Information Description Volume (bbls) Density (ppg)Yield (ft3/sx) Notes Surface 1st stg 152/136 13.2/14.0 1.83/1.61 Tail 13.6-14.0 ppg Surface 2nd stg 260 13.2 1.83 Plug Bumped 1600 psi Production 1st stg 53 14.0 1.61 Lost returns Production 2nd stg 276 13.2 1.83 Trace cement to surface ALASKA OIL AND GAS CONSERVATION COMMISSION INSPECT DATE 6/10/2020 AOGCC INSPECTOR Matt Her Rig Hilcorp 404 Rig Contractor Hilcorp Operator Hilcorp AK Well TBU M-10 Operation Workover Working Pressure, W/H Flang Working Pressure, BOP Stack Annular Preventer Pipe Rams Blind Rams Locking Devices, Rams Stack Anchored Choke Line Kill Line Targeted Turns HCR Valve(s) Manual Valves RIG INSPECTION REPORT P.I. Supvd 2-0 Comm: Coil Tubing Unit? No Rig Representative I Les Benjamin Contractor Representative I Harold Soule / Andy Lundale Permit to Drill # Inspection Location P Pit Fluid Measurement Flow Rate Sensor Mud Gas Separator Degasser Separator Bypass Gas Detectors Alarms Separate/Distinct Choke/Kill Line Connections Reserve Pits Trip Tank P P P P P P P P dA Flange/Hub Connections Drilling Spool Outlets Flow Nipple Control Lines P Kelly or TD Valves Floor Safety Valves Driller's Console Flow N Flow Rate Inc Pit Level Indi G Gas Detection Monitor Hydraulic Control Panel Kill Sheet Current NA NA P Operating Pressure P PPE Well Control Trained Housekeeping Well Control Plan P P P P FAILURES: 0 CORRECT BY: 2091540 Sundry # 320-226 ' ISteelhead Platform P Working Pressure P P Operating Pressure P P Fluid Level/Condition P P Pressure Gauges P P Sufficient Valves P P Regulator Bypass P P Actuators (4 -way valves) P P Blind Ram Handle Cover P P Control Panel, Driller P JA Control Panel, Remote P Firewall 2 or More Pumps JA Independent Power Supply P N2 Backup P Condition of Equipment CHOKE MANIFI Remote Hydraulic Choke FOV Upstream of Chokes Targeted Turns P Bypass Line IN! Pit was reserve pit only no trip tank. Gain loss and level alarms tested good. New fluid in accumulator. Total Safety contractor for Gas COMMENTS Alarms. Had them relocate H2S detector to a lower posion directly under fold down rig floor. No cellar persay under floor, open area. All alarms tested good in conjunction with Operations alarms in well bay and living quarters 2020-0610_Rig_Hi1corp404_TBU_M-10_mh rev. 5-16-16 STATE OF ALASKA OIL AND GAS CONSERVATION COMMISSION Reviewed By: i P.I. Salim :i I ` Z yc BOPE Test Report for: TRADING BAY UNIT M-10 t' Comm Contractor/Rig No.: Hilcorp 404 Operator: Hilcorp Alaska, LLC Type Operation: WRKOV Sundry No: Type Test: WIT 320-226 � PTD#: 2091540 DATE: 6/10/2020 ' Inspector Matt HerreraInsp Source Operator Rep: Harold Soule / Andy Lundal Rig Rep: Les Benjamin / Chris H Inspector Teat Pressures: Rams: Annular: Valves: MASP: Inspection No: bopMFH2O0611133804 250/2500 250/2500 ' 250/2500 ` 1519 , Related Insp No: TEST DATA MISC. INSPECTIONS: MUD SYSTEM: P/F ACCUMULATOR SYSTEM: 0 NA P/F 0 Visual Alarm Ball Type Time/Pressure P/F Location Gen.: P - Trip Tank NA _ NA System Pressure " P_ - Housekeeping: _P Pit Level Indicators P P _3000 Pressure After Closure 1875 ' P PTD On Location P Flow Indicator NA NA_' _ _ 200 PSI Attained 42 - P Standing Order Posted P Meth Gas Detector P _ P Full Pressure Attained 195 - P Well Sign _ P__ H2S Gas Detector P :_ P Blind Switch Covers: Yes P Drl. Rig P MS Misc NA NA _ _ Nitgn. Bottles (avg): X2000 P " Hazard Sec. _ P " ACC Mise 0 NA_ Mise NA FLOOR SAFTY VALVES: BOP STACK: Quantity Size P/F Stripper Quantity P/F Upper Kelly 0 NA Lower Kelly_ 0 NA Ball Type I PP Inside BOP _1 P FSV Misc 0 NA BOP STACK: Quantity Size P/F Stripper 0 _ NA Annular Preventer 1 ' 13 5/8" P ' #1 Rams J 2 7/8x5 1/2 _ P #2 Rams I -Blinds _ P ' #3 Rams _0____' NA _ #4 Rams 0 NA_ #5 Rams 0 NA #6 Rams 0 _ NA_ Choke Ln. Valves 1' 21/161, P HCR Valves 2 ' 2 1/16" P ' Kill Line Valves 2 _2_1/16"_ P Check Valve 0 _ NA BOP MISC 0 NA CHOKE MANIFOLD: Quantity P/F No. Valves 10 - P " Manual Chokes 1 P - Hydraulic Chokes 1 P ' CH Misc 0 NA INSIDE REEL VALVES: (Valid for Coil Rigs Only) Quantity P/F Inside Reel Valves 0 _ NA Number of Failures: 0 ✓ Test Results Test Time 3.5 Remarks: 3 1/2" Test Joint Rig Insp conducted as well. Relocated 112S Detector lower on dg floor all gas alarms tested goody 1. Type of Request: Abandon Plug Perforations Fracture Stimulate Repair Well Operations shutdown Suspend Perforate Other Stimulate Pull Tubing Change Approved Program Plug for Redrill Perforate New Pool Re-enter Susp Well Alter Casing 2. Operator Name:4. Current Well Class:5. Permit to Drill Number: Exploratory Development 3. Address: 3800 Centerpoint Drive, Suite 1400 Stratigraphic Service 6. API Number: 7. If perforating:8. Well Name and Number: What Regulation or Conservation Order governs well spacing in this pool? Will planned perforations require a spacing exception?Yes No 9.Property Designation (Lease Number):10.Field/Pool(s): McArthur River Field / Middle Kenai Gas Pool 11. Total Depth MD (ft): Total Depth TVD (ft): Effective Depth MD: Effective Depth TVD: MPSP (psi):Plugs (MD):Junk (MD): 7,520'N/A Casing Collapse Structural Conductor Surface 2,260 psi Intermediate Production 5,410 psi Liner Packers and SSSV Type:Packers and SSSV MD (ft) and TVD (ft): 12. Attachments: Proposal Summary Wellbore schematic 13.Well Class after proposed work: Detailed Operations Program BOP Sketch Exploratory Stratigraphic Development Service 14.Estimated Date for 15. Well Status after proposed work: Commencing Operations:OIL WINJ WDSPL Suspended 16. Verbal Approval:Date:GAS WAG GSTOR SPLUG Commission Representative: GINJ Op Shutdown Abandoned Contact Name: Contact Email:mmckinley@hilcorp.com Contact Phone: (907) 777-8387 Date: Conditions of approval: Notify Commission so that a representative may witness Sundry Number: Plug Integrity BOP Test Mechanical Integrity Test Location Clearance Other: Post Initial Injection MIT Req'd? Yes No Spacing Exception Required? Yes No Subsequent Form Required: APPROVED BY Approved by: COMMISSIONER THE COMMISSION Date: Comm. Comm. Sr Pet Eng Sr Pet Geo Sr Res Eng Other: G/L Completion N2 Operations / CT 4,537'7" 5,789' Authorized Title: 17. I hereby certify that the foregoing is true and the procedure approved herein will not be deviated from without prior written approval. 6/20/2020 3-1/2" Daniel E. Marlowe See schematic Perforation Depth MD (ft): 5,789 - 7,520 (Open Hole) 5,789' See schematic Tubing Grade:Tubing MD (ft): 4,537 - 4,554 (Open Hole) Perforation Depth TVD (ft): 9.2 / L-80 TVD 32" 13-3/8" 490' 1,402'5,020 psi 490' 1,375' 490' 1,402' 209-154 50-733-20588-00-00Anchorage, AK 99503 Hilcorp Alaska, LLC Trading Bay Unit M-10 MD COMMISSION USE ONLY Authorized Name: Burst 4,783' 7,240 psi Tubing Size: Authorized Signature: Operations Manager Mark McKinley CO 228A PRESENT WELL CONDITION SUMMARY N/A4,554' 7,520' 4,554' 1,519 psi Length Size STATE OF ALASKA ALASKA OIL AND GAS CONSERVATION COMMISSION APPLICATION FOR SUNDRY APPROVALS 20 AAC 25.280 ADL0018730 Form 10-403 Revised 3/2020 Approved application is valid for 12 months from the date of approval. By Samantha Carlisle at 8:06 am, Jun 02, 2020 320-226 Daniel Marlowe I am approving this document 2020.06.01 16:06:11 -08'00' Daniel Marlowe 10-404 X rig 404 gls 6/4/20 DLB 6/2/2020 Perforate DSR-6/2/2020 G/L Completion N2 Operations / CT *2500 psi BOPE pressure test X GAS Comm. eption Required? Yes Type text here6/4/2020 dts 6/4/2020 JLC 6/4/2020 RBDMS HEW 6/9/2020 Well Work Prognosis Well Name:M-10 API Number:50-733-20588-00 Current Status:SI Gas Producer Leg:Leg A1, SW Corner Estimated Start Date:6/20/2020 Rig:HAK 404 Reg. Approval Req’d?403 Date Reg. Approval Rec’vd: Regulatory Contact:Juanita Lovett Permit to Drill Number:209-154 First Call Engineer:Mark McKinley Office: 907-777-8387 Cell: 907-953-2685 Second Call Engineer:Dan Marlowe Office: 907-283-1329 Cell: 907-398-9904 Current Bottom Hole Pressure:120 psi @ 4,405’ TVD 0.027 psi/ft based on October 2017 SIBHP Maximum Expected BHP:1,975 psi @ 4,561’ TVD 0.433 psi/ft water gradient to surface Maximum Potential Surface Pressure:1,519 psi Using 0.1 psi/ft gradient 20 AAC 25.280(b)( 4) Well History: The M-10 was completed in 2010, since then production has declined. In 2017 the SSSV failed and a K-valve was installed. The additional tubing pressure required by the K-valve does not allow the well to produce to its full potential. This proposed work will keep the original D-2 lateral. In addition it will add the B-1, B-3, and B-5 sands. Safety Concerns: x Discuss nitrogen asphyxiation concerns and identify any areas where nitrogen could collect and people could enter. x Consider tank placement based on wind direction and current weather forecast (venting methane and Nitrogen during this job) x Ensure all crews are aware of stop job authority (Review Standard Well Procedure – Nitrogen Operations) Wireline work: x Slickline will remove K-valve x Fish out or push down SL tools at ±4,730’ x A retrievable plug will be set at ±4,760’ o Test tubing against plug to ±900 psig with gas. x Dummy GLM at ±4,726’ if not recovering mandrel during workover x Pull GLV at ±3,456’ for circulation x Tubing cut at either a minimum depth of ±4,380’ or just below bottom GLM at ±4,750’ Procedure: 1. MIRU HAK 404 2. ND tree, NU BOPE’s 3. Test BOPE’s to 250psi low/2,500psi high /2,500psi annular. (Note: Notify AOGCC 48 hours in advance of test to allow them to witness test). 4. Workover fluid will be brine. BOP’s will be closed as needed to circulate the well. 5. Pull upper completion, fishing tubing and cleaning out as needed to top of cut tubing. 6. RIH with casing scraper to top of cut tubing.Circulate clean. POOH. 7. RIH with 3-1/2” lower completion. Packer assembly and overshot. See proposed schematic for details and set depths. This packer and lower completion is for velocity only, Sealing/pressure testing not required. a. Set packer b. Release from packer and POOH 8. RIH with 3-1/2” gas lift completion (live valves), SSSV, and packer assembly. See proposed schematic for details and set depths. 9. Set Packer / Pressure test completion: tubing (open mandrel @ 3456') . lower packer/ overshot Test BOPE’s to 250psi low/2,500psi high /2,500psi annular. Pre-rig work This proposed work will keep the original D-2 lateral. In addition it will add the B-1, B-3, and B-5 sands. -overshot not sealing. Well Work Prognosis a. Pressure up and set packer b. Test tubing against plug in X nipple to ш2,500psig and chart for 30 minutes. c. Test IA to 1,500 psi and chart for 30 minutes (This will pressure up tubing also). d. Pull prong and plug in X-nipple 10. Set BPV. NU tree, test same. 11. RD HAK 404 12. RU Coil tubing a. Test BOPE’s to 250psi low/4,000psi high (Note: Notify AOGCC 48 hours in advance of test to allow them to witness test). b. Circulate well clean c. Blow the well dry with Nitrogen to production header or non-enclosed open top tank 13. Recover tubing plug in lower completion with either coil or slickline. 14. Turn over to production. 15. Produce D-2 lateral until well is stable 16. E-line pressure testing lubricator to 250psi low/2,500psi and perforate per program 17. Schedule SVS testing with AOGCC as per regulations Attachments: 1. Current Wellbore Schematic 2. Proposed Wellbore Schematic 3. Current / Proposed Wellhead Diagram (same) 4. BOP Stack 5. Standard Well Procedure – Nitrogen Operations 6. Flow Diagrams 7. RWO Sundry Revision Change Form RBP pulled in lower section.(open D2 sand) Test tubing against plug in X nipple to ш2,500psig and chart for 30 minutes. c.Test IA to 1,500 psi and chart for 30 minutes (This will pressure up tubing also). ( see wellbore proposed schematic for perf depths) MIT-T /IA UPDATED BY: JLL 11/07/17 Trading Bay Unit Steelhead Platform Well: M-10 PTD: 209-154 API: 50-733-20588-00 Completed: 03/08/10 SCHEMATIC MAX HOLE ANGLE = 91.89qq @ 7042’ MD Casing &Tubing Detail SIZE WT GRADE CONN MIN ID TOP BTM (MD) BTM (TVD) 32” X-56 Welded 30” Surface 490’ 490’ 13-3/8” 68 L-80 BTC 12.415 Surface 1402’ 1376’ 7” 26 L-80 H-563 6.276 Surface 5789’ 4536’’ 3 1/2 9.2 L-80 TC-II 2.992 Surface 4783’ 4110’ RKB to TBG Head = 78’ ECP Stage Collar @ 411 13 3/8” in 17 ½” Hole Est TOC @ 300’ 32” Conductor Stage Collar @ 4833’ MD SSSV Swell Packer @ 4902’ MD SC-1 Packer @ 4783’ MD Swell Packer @ 4910’ MD Completion Equipment Information Item Depth MD Depth TVD OD ID McMurry-Macco SSC-SSSV 448’ 448’ 2.813” N/A 3 ½” WellStar TRSV 12.6 TCII 448’ 448’ 5.200” 2.813” 3 ½” SFO-1 Mandrel 1739’ 1661’ 5.313” 2.867” 3 ½” SFO-1 Mandrel 3456’ 2918’ 5.313” 2.867” 3 ½” SFO-1 Mandrel 4726’ 4067’ 5.313” 2.867” 7” SC-1 Production Packer 4783’ 4109’ 6.000” 4.000” Seal Bore Extension 4789’ 4114’ 5.010” 3.990” Retrieving Extension 4793' 4116’ 5.520” 4.710” Fluid Loss Control Valve 4800’ 4121’ 5.810” 3.110” 4.5”,12.6 lb/ft TC-II Blank Pipe 4809’ 4128’ 4.530” 3.958” Weatherford swell packer 4902’ 4192’ 5.75” 4.000 Weatherford swell packer 4910’ 4197’ 5.75” 4.000 4.5”,12.6 lb/ft TC-II Blank Pipe 4922’ 4205’ 4.530” 3.958” 4.0” BakerWeld 12 Ga Screen 5300’ 4405’ 4.450” 3.540” 4.5”,12.6 lb/ft TC-II Blank Pipe 5713’ 4520’ 4.530” 3.958” 4.0” BakerWeld 12 Ga Screen 5747’ 4528’ 4.450” 3.540” 4.5”,12.6 lb/ft TC-II Blank Pipe 5786’ 4536’ 4.530” 3.958” 4.0” BakerWeld 12 Ga Screen 6042’ 4561’ 4.450” 3.540” Pack Off Sub for Slick Stinger 6605’ 4563’ 4.510” 2.000” GP Wash Down Shoe 6609’ 4563’ 4.490” NA Cementing Information Description Volume (bbls) Density (ppg)Yield (ft3/sx) Notes Surface 1st stg 152/136 13.2/14.0 1.83/1.61 Tail 13.6-14.0 ppg Surface 2nd stg 260 13.2 1.83 Plug Bumped 1600 psi Production 1st stg 53 14.0 1.61 Lost returns Production 2nd stg 276 13.2 1.83 Trace cement to surface Logging Detail Hole Section LWD/MWD Wire Line Mud Logging Notes 17 ½ gMWD, GR/RES Gas On Site Geologist 9 1/4 Triple Combo/ PWD USIT F/400’– 5350’Mudlog On Site Geologist 6 1/8”Triple Combo PWD Mudlog On Site Geologist 4.5” wire wrap screen 4.5” wire wrap screen TD @ 6611’ MD TD: 7520’ MD 6 1/8” Open Hole 7” Casing in 9 1/4” Hole 7" CURRENT circ mandrel @ 3456ft D2 lateral tubing cut approx 4380 ft RBP set at 4760' 7"6/4/2020 Updated By: JLL 06/01/20 PROPOSED Trading Bay Unit Steelhead Platform Well: M-10 PTD: 209-154 API: 50-733-20588-00 Completed: FUTURE Jewelry Detail No Depth MD Depth TVD OD ID Item 1 ±450’ ±450’ SSSV 2 ±1,750’ ±1,670’ GLM 3 ±2,520’ ±2,204’ GLM 4 ±2,550’ ±2,224’ Packer 5 ±2,580’ ±2,245’ X Nipple 6 ±3,720’ ±3,164’ WLEG 7 ±4,340’ ±3,742’ 5.87” 5.00” PBR 8 ±4,344’ ±3,746’ 5.87” 4.00” Packer 9 ±4,370’ ±3,770’ X Nipple 10 ±4,380’ ±3,779’ Tubing Overshot 11 4,726’ 4,067’ 5.313” 2.867”3 ½” SFO-1 Mandrel - Dummy 12 4,783’ 4,109’ 6.000” 4.000” 7” SC-1 Production Packer 4,789’ 4,114’ 5.010” 3.990” Seal Bore Extension 4,793' 4,116’ 5.520” 4.710” Retrieving Extension 4,800’ 4,121’ 5.810” 3.110” Fluid Loss Control Valve 4,809’ 4,128’ 4.530” 3.958” 4.5”,12.6 lb/ft TC-II Blank Pipe 13 4,902’ 4,192’ 5.75” 4.000 Weatherford swell packer 14 4,910’ 4,197’ 5.75” 4.000 Weatherford swell packer 4,922’ 4,205’ 4.530” 3.958” 4.5”,12.6 lb/ft TC-II Blank Pipe 5,300’ 4,405’ 4.450” 3.540” 4.0” BakerWeld 12 Ga Screen 5,713’ 4,520’ 4.530” 3.958” 4.5”,12.6 lb/ft TC-II Blank Pipe 5,747’ 4,528’ 4.450” 3.540” 4.0” BakerWeld 12 Ga Screen 5,786’ 4,536’ 4.530” 3.958” 4.5”,12.6 lb/ft TC-II Blank Pipe 6,042’ 4,561’ 4.450” 3.540” 4.0” BakerWeld 12 Ga Screen 6,605’ 4,563’ 4.510” 2.000” Pack Off Sub for Slick Stinger 6,609’ 4,563’ 4.490” NA GP Wash Down Shoe PBTD: ‘ TD: 7,520’ 32” RKB to TBG Head: 78’ B-1 3 4 5 6 7 8 9 10 11 12 13 13-3/8” 7” 1 2 Cut Tbg @ ± 4,380’ 14 4.5” wire wrap screen TD @ 6611’ MD 6 1/8” Open Hole 7” Casing in 9 1/4” Hole 4.5” wire wrap screen MAX HOLE ANGLE = 91.89q @ 7042’ MD B-3 B-5 X SC-1 Packer @ 4783’ MD Swell Packer @ 4902’ MD Swell Packer @ 4910’ MD 13 3/8” in 17 ½” Hole Est TOC @ 300’ Stage Collar @ 4833’ MD ECP Stage Collar @ 411’ X Casing &Tubing Detail SIZE WT GRADE CONN MIN ID TOP BTM (MD) BTM (TVD) 32” X-56 Welded 30” Surface 490’ 490’ 13-3/8” 68 L-80 BTC 12.415 Surface 1,402’ 1,376’ 7” 26 L-80 H-563 6.276 Surface 5,789’ 4,536’ Tubing Detail 3 1/2 9.2 L-80 Surface ±3,720’ ±3,164’ 3 1/2 9.2 L-80 TC-II 2.992 ±4,380’4,783’ 4,110’ PERFORATION DETAIL Zone Top (MD)Btm (MD)Top (TVD) Btm (TVD)FT Date Status B-1 ±3,760' ±3,776’ ±3,202’ ±3,217’ ±6’ Future Proposed B-1 ±3,804’ ±3,814’ ±3,244’ ±3,253’ ±10’ Future Proposed B-1 ±3,820’ ±3,834’ ±3,259’ ±3,272’ ±14’ Future Proposed B-3 ±3,893’ ±3,969’ ±3,328’ ±3,399’ ±76’ Future Proposed B-5 ±4,136’ ±4,171’ ±3,555’ ±3,587’ ±35’ Future Proposed B-5 ±4,176’ ±4,209’ ±3,592’ ±3,622’ ±33’ Future Proposed D2 (proposed perforations) (x plug pulled after completion set) lateral capable of flowing non-sealing overshot new perforations 5789' Updated By: JLL 06/01/20 PROPOSED Trading Bay Unit Steelhead Platform Well: M-10 PTD: 209-154 API: 50-733-20588-00 Completed: FUTURE Logging Detail Hole Section LWD/MWD Wire Line Mud Logging Notes 17 ½ gMWD, GR/RES Gas On Site Geologist 9 1/4 Triple Combo/ PWD USIT F/400’– 5350’Mudlog On Site Geologist 6 1/8”Triple Combo PWD Mudlog On Site Geologist Cementing Information Description Volume (bbls) Density (ppg)Yield (ft3/sx) Notes Surface 1st stg 152/136 13.2/14.0 1.83/1.61 Tail 13.6-14.0 ppg Surface 2nd stg 260 13.2 1.83 Plug Bumped 1600 psi Production 1st stg 53 14.0 1.61 Lost returns Production 2nd stg 276 13.2 1.83 Trace cement to surface Steelhead Platform M-10 Current 05/22/2020 Valve, Master, WKM-M, 3 1/8 5M FE, HWO, EE trim Valve, Upper master, SSV, WKM-M, 3 1/8 5M FE, HWO, w/ 15'͛operator, EE trim Valve, Swab, WKM-M 3 1/8 5M FE, HWO, EE trim BHTA, Otis, 3 1/8 5M FE x 3'͛ Bowen quick union top Valve, Wing, WKM-M, 3 1/8 5M FE, EE trim 13 3/8'͛ 9 5/8'͛ 3 ½͛͛ Steelhead Platform M-10 28 x 13 3/8 x 9 5/8 x 3 1/2 Tubing hanger, Vetco-MB 242, 13 5/8 5M x 3 ½ Hydril 563 susp x 3.725 MCA lift, w/ 3'͛type H BPV profile, 2- ½ npt control line ports Starting head, Vetco MB-246, 20 ¾ 3M NT-2 top x 28'͛BW bottom, w/ 2- 3'͛LPO and 6'͛ ANSI 600 outlets Multibowl system, Vetco MB-242, 13 5/8 5M Flanged top x 20 ¾ 3M NT-2 bottom, BOP Stack Rig 404 Valve Position(O/C)Standpipe PumpManifold1(PM1) OManifold PumpManifold2(PM2) OPumpManifold3(PM3) CPumpManifold4(PM4) OPumpManifold5(PM5) CMud KillLine1OCross KillLine2OHCRvalve(ChokeLine1) CChokeLine2OChoke ChokeManifold1(CM1) OManifold ChokeManifold2(CM2) CChokeManifold3(CM3) OChokeManifold4(CM4) CChokeManifold5(CM5) OChokeManifold6(CM6) CChokeManifold7(CM7) OChokeManifold8(CM8) CChokeManifold9(CM9) CChokeManifold10(CM10) OSuperChoke CManualChoke CRigFloor SafetyValve O Valve Position(O/C)Standpipe PumpManifold1(PM1) OManifold PumpManifold2(PM2) CPumpManifold3(PM3) OPumpManifold4(PM4) CPumpManifold5(PM5) OMud KillLine1OCross KillLine2OHCRvalve(ChokeLine1) CChokeLine2OChoke ChokeManifold1(CM1) OManifold ChokeManifold2(CM2) CChokeManifold3(CM3) OChokeManifold4(CM4) CChokeManifold5(CM5) OChokeManifold6(CM6) CChokeManifold7(CM7) OChokeManifold8(CM8) CChokeManifold9(CM9) CChokeManifold10(CM10) OSuperChoke CManualChoke CRigFloor SafetyValve O Coiled Tubing BOP 05/21/2020 SWAB VALVE MASTER VALVE Hilcorp Monopod Rig 56 Flow Diagram Fluids Pumped Fluids Returned Valve Open Valve Closed Gate Valve Ball Valve Butterfly Valve Lo Torq Valve Automatic Choke Manual Choke Pressure Gauge Knife Valve Choke Line P PIT SYSTEM SucƟon SHAKER SHAKER CHOKE MANIFOLD GAS BUSTER Panic Line C12 C13 C15 C14 C16 A B C4 C5 C6 C7 C2 C10 C9 C11 C8 C3 P C1 C STANDARD WELL PROCEDURE NITROGEN OPERATIONS 09/23/2016 FINAL v-offshore Page 1 of 1 1.) MIRU Nitrogen Pumping Unit and Liquid Nitrogen Transport. 2.) Notify Facility Operator of upcoming Nitrogen operations. 3.) Perform Pre-Job Safety Meeting. Review 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 Nitrogen Tank. 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 supplier 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 Tank. Rig 404 BOP Test Procedure Attachment #1 Attachment #1 Hilcorp Alaska, LLC - BOP Test Procedure: Rig 404, WO Program – Oil Producers, Gas Producers, Water Injectors Pre Rig Move 1) Blow down well, bleed gas to Well Clean Tank that is vented thru flare to atmosphere 2) Load well with FIW to kill well. x Note: Fluid level will fall to a depth that balances with reservoir pressure. 3) Shoot fluid level at least 24 hours before moving on well. 4) Shoot fluid level again, right before ND/NU. Confirm that well is static. Initial Test (i.e. Tubing Hanger is in the Wellhead) If BPV profile is good 1) Set BPV. ND Tree. NU BOP. 2) MU landing joint. Pull BPV. Set 2-way check in hanger. 3) Space out test joint so end of tubing (EOT) is just above the blind rams. 4) Set slips, mark same. Test BOPE per standard test procedure. If the tubing hanger won’t pressure test due to either a penetrator leak or the BPV profile is eroded and/or corroded and BPV cannot be set with tree on. Profile and/or landing threads must be prepped while tree is off. Worst Case: BPV profile and landing threads are bad. 1) Attempt to set BPV through tree. If unsuccessful, shoot fluid level. 2) If fluid level is static from previous fluid level shots, notify Hilcorp Anchorage office that the well is static and the tree must be removed with no BPV. As approved in the sundry, proceed as follows: a) ND tree with no BPV b) Inspect and prepare BPV profile to accept a 2-way valve, or prepare lift-threads to accept landing joint to hold pressure. If well is a producer and the culprit is scale, attempt to clean profile with Muriatic acid and a wire brush or wheel. c) Set 2-way check valve by hand, or MU landing (test) joint to lift-threads d) For ESP wells - Ensure that cap is on cable penetrator e) NU BOP. Test BOPE per standard procedure. 3) If both set of threads appear to be bad and unable to hold a pressure test and / or a penetrator leaks, notify Operations Engineer (Hilcorp), Mr. Guy Schwartz (AOGCC) and Mr. Jim Regg (AOGCC) via email explaining the wellhead situation prior to performing the rolling test. AOGCC may elect to send an inspector to witness. As outlined and approved in the sundry, proceed as follows: a) Nipple Up BOPE b) With stack out of the test path, test choke manifold per standard procedure c) Conduct a rolling test: Test the rams and annular with the pump continuing to pump, (monitor the surface equipment for leaks to ensure that the fluid is going down-hole and not leaking anywhere at surface.) d) Hold a constant pressure on the equipment and monitor the fluid/pump rate into the well. Record the pumping rate and pressure. e) Once the BOP ram and annular tests are completed, test the remainder of the system following the normal test procedure (floor valves, gas detection, etc.) Rig 404 BOP Test Procedure Attachment #1 f) Record and report this test with notes in the remarks column that the tubing hanger/BPV profile / penetrator wouldn’t hold pressure and rolling test was performed on BOP Equipment and list items, pressures and rates. 4) Pull hanger to surface. (Requires tubing cuts as necessary to free tubing). CBU to displace annulus and tubing with kill weight fluid. 5) If a rolling test was conducted, remove the old hanger, MU new hanger or test plug to the completion tubing. Re-land hanger (or test plug) in tubing head. Test BOPE per standard procedure. Subsequent Tests (i.e. Test Plug can be set in the Tubing-head) 1) Remove wear bushing. a) Use inverted test plug to pull wear busing. MU to joint of tubing. b) Thread into wear bushing c) Back out hold down pins d) Pull and retrieve wear bushing. 2) Break off test plug and invert same- RIH with test plug on joint of tubing. Install a pump-in sub w/ test line plus an open TIW or lower Kelly valve in top of test joint w/ open IBOP. 3) Test BOPE per standard procedure. STANDARD BOPE TEST PROCEDURE (after 2-way check or test plug is set) 1) Fill stack and all lines with rig pump- install chart recorder on test line connected to pump-in sub below safety valve and IBOP in test joint assembly. 2) Note: When testing, pressure up with pump to desired pressure, close valve on pump manifold to trap pressure and read same with chart recorder (test pressures will be indicated in Sundry). 3) Referencing the attached schematics test rams and valves as follows. a) Close 1 st valve on standpipe manifold, close valves 1, 2, 10 on choke manifold and close the annular preventer, open safety valve on top of test jt and close IBOP. Pressure test to 250 psi for 5 minutes and xxx psi (see sundry) high for 5 minutes. If passes after 5 minutes on each, bleed off pressure back to tank and open annular. b) Close pipe rams and open annular preventer, close safety valve and open IBOP on test joint, close outside valve on kill side of mud cross, open 1st valve of standpipe, close valves 3, 4 & 9 on choke manifold, open valves 1 & 2 on choke manifold. Test to 250 psi for 5 minutes and xxx psi (see sundry) high for 5 minutes. If passes after 5 minutes on each, bleed off pressure back to tank. c) Test Dual Rams. If the well has dual tubing, and dual rams are installed in the stack, test the dual rams by picking up two test joints with dual elevators and lowering them into stack and position them properly in the dual rams. Close rams. Test to 250 psi for 5 minutes and xxx psi (see sundry) for 5 minutes. If passes after 5 minutes on each, bleed off pressure back to tank. d) Close inside valve / open outside valve on kill side of mud cross, close valves 5 & 6 / open valves 3 & 4 on choke manifold. Test to 250 psi for 5 minutes and xxx psi (see sundry) for 5 minutes. If passes after 5 minutes on each, bleed off pressure back to tank. e) Close manual and super choke / open valves 5 & 6 on choke manifold. Pressure up to ~ 1200 psi and bleed off 200 – 300 #s recording change and stabilization. If passes after 5 minutes, bleed off pressure back to tank. f) Close HCR (outside valve on choke side of mud cross), open manual & super choke. Test to 250 psi for 5 minutes and xxx psi (see sundry) for 5 minutes. If passes after 5 minutes on each, bleed off pressure back to tank. Rig 404 BOP Test Procedure Attachment #1 g) Close inside valve / open outside valve (HCR) on choke side of mud cross. Test to 250 psi for 5 minutes and xxx psi (see sundry) for 5 minutes. If passes after 5 minutes on each, bleed off pressure back to tank. h) Ensure all pressure is bled off- open pipe rams and pull test joint leaving test plug / 2-way check in place. Close blind rams and attach test line to valve 10 on choke manifold, close valve 7 & 8 / open valve 10 on choke manifold. Test to 250 psi for 5 minutes and xxx psi (see sundry) for 5 minutes. If passes after 5 minutes on each, bleed off pressure back to tank. i) Test additional floor valves (TIW or Lower Kelly Valve) and IBOPs as necessary. STANDARD TEST PROCEDURE OF CLOSING UNIT (ACCUMULATOR) 1) This is a test of stored energy. Shut off all power to electric and pneumatic pumps. 2) Record “Accumulator Pressure”. It should be +/- 3,000 psi. 3) Close Annular Preventer, the Pipe Rams, and HCR. Close 2 nd set of pipe rams if installed (e.g. dual pipe rams). Open the lower pipe rams to simulate the closing volume on the blinds. 4) Allow pressures to stabilize. 5) While stabilizing: Record pressure values of each Nitrogen bottle and average over the number of bottles. (i.e. Report might read “10 bottles at 2,150 psi”). 6) After accumulator has stabilized, record accumulator pressure again. This represents the pressure and volume remaining after all preventers are closed. (The stabilized pressure must be at least 200 psi above the pre- charge pressure of 1,000 psi). 7) Turn on the pump and record the amount of time it takes to build an additional 200 psi on the accumulator gauge. This is usually +/- 30 seconds. 8) Once 200 psi pressure build is reached, turn on the pneumatic pumps and record the time it takes for the pumps to automatically shut-off after the pressure to builds back to original pressure (+/- 3,000 psi). Note: Make sure the electric pump is turned to “Auto”, not “Manual” so the pumps will kick-off automatically. 9) Open all rams and annular and close HCR to place BOPE back into operating position for well work. 10) Fill out AOGCC report. FINAL STEP, FINAL CHECK 1) Test Gas Alarms 2) Double check all rams and valves, for correct operating position 3) Fill out the AOGCC BOPE Test Form (10-424) in Excel Format and e-mail to AOGCC and Juanita Lovett. Document both the rolling test and the follow up tests. Hilcorp Alaska, LLCHilcorp Alaska, LLCChanges to Approved Rig Work Over Sundry ProcedureSubject: Changes to Approved Sundry Procedure for Well: Trading Bay Unit M-10 (PTD 209-154)Sundry #: XXX-XXXAny modifications to an approved sundry will be documented and approved below. Changes to an approved sundry will be communicated to theAOGCC by the rig workover (RWO) “first call” engineer. AOGCC written approval of the change is required before implementing the change.Sec Page Date Procedure Change New 403Required?Y / NHAKPreparedBy(Initials)HAKApprovedBy(Initials)AOGCC WrittenApproval Received(Person and Date)Approval:Asset Team Operations Manager DatePrepared:First Call Operations Engineer Date 11hUhililtli STATE OF ALASKA OV 8 ?O17 ALilikA OIL AND GAS CONSERVATION COMIIAION REPORT OF SUNDRY WELL OPERATIONS AOGCC • 1.Operations Abandon 0 Plug Perforations 0 Fracture Stimulate ❑ Pull Tubing 0 Operations shutdown 0 Performed: Suspend 0 Perforate 0 Other Stimulate ❑ Alter Casing❑ Change Approved Program ❑ Plug for Redrill 0 Perforate New Pool 0 Repair Well ❑ Re-enter Susp Well 0 Other:Install K-Valve 0 2.Operator 4.Well Class Before Work: 5.Permit to Drill Number: Name: Hilcorp Alaska,LLC Development 0 Exploratory 0 209-154 3.Address: 3800 Centerpoint Drive,Suite 1400 Stratigraphic 0 Service 0 6.API Number: Anchorage,AK 99503 50-733-20588-00-00 7.Property Designation(Lease Number): 8.Well Name and Number: ADL0018730 Trading Bay Unit M-10 9.Logs(List logs and submit electronic and printed data per 20AAC25.071): 10.Field/Pool(s): N/A McArthur River Field/Middle Kenai Gas Pool 11.Present Well Condition Summary: Total Depth measured 7,520 feet Plugs measured N/A feet true vertical 4,554 feet Junk measured N/A feet Effective Depth measured 7,520 feet Packer measured See Schematic feet true vertical 4,554 feet true vertical See Schematic feet Casing Length Size MD TVD Burst Collapse Structural Conductor 490' 32" 490' 490' Surface 1,402' 13-3/8" 1,402' 1,375' 5,020 psi 2,260 psi Intermediate Production 5,789' 7" 5,789' 4,537' 7,240 psi 5,410 psi Liner Perforation depth Measured depth (Open hole)5,789- feet 7.520 SCANNED AN 0 5 201 True Vertical depth (Open hole)4,537- feet 4.554 Tubing(size,grade,measured and true vertical depth) 3-1/2" 9.2#/L-80 4,783(MD) 4,109(TVD) Packers and SSSV(type,measured and true vertical depth) See Schematic 12.Stimulation or cement squeeze summary: Intervals treated(measured): N/A Treatment descriptions including volumes used and final pressure: N/A 13. Representative Daily Average Production or Injection Data Oil-Bbl Gas-Mcf Water-Bbl Casing Pressure Tubing Pressure Prior to well operation: 0 0 0 50 82 Subsequent to operation: 0 245 0 184 72 14.Attachments(required per 20 AAC 25.070,25.071,&25.283) 15.Well Class after work: Daily Report of Well Operations 0 Exploratory ❑ Development0 Service 0 Stratigraphic ❑ Copies of Logs and Surveys Run ❑ 16.Well Status after work: Oil ❑ Gas 0 WDSPL❑ Printed and Electronic Fracture Stimulation Data ❑ GSTOR ❑ WINJ 0 WAG ❑ GINJ❑ 3USP❑ SPLUG❑ 17. I hereby certify that the foregoing is true and correct to the best of my knowledge. Sundry Number or N/A if C.O.Exempt: 317-530 Authorized Name: Stan W.Golis Contact Name: Dan Marlowe Authorized Title: Operations Manager Cont/act Email: dmarlowe(cilhilcorp._c_com Authorized Signature: L'i G'"k Date:t 's ,' I i" ) I Contact Phone: (907)283-1329 Form 10-404 Revised 4/2017 ),, I Z'''"''J ®® �j`� ]Submit Original Only 7 dr(K�/// RBDP S tjvi,ui' i. b LelI/ Trading Bay Unit II • • Steelhead Platform SCHEMATIC Well: M-10 PTD:209-154 API:50-733-20588-00 Hilcorp Alaska,LLC Completed: 03/08/10 RKB to TBG Head=78' Casing&Tubing Detail SIZE WT GRADE CONN MIN ID TOP BTM BTM - U` (MD) (ND) 1 sssv 32" X-56 Welded 30" Surface 490' 490' s';,;21611II 32"Conductor 13-3/8" 68 L-80 BTC 12.415 Surface 1402' 1376' 1 ECP Stage 7" 26 L-80 H-563 6.276 Surface 5789' 4536" � ti Collar @ 411 31/2 9.2 L-80 TC-Il 2.992 Surface 4783' 4110' IEst roc @ 300' Logging Detail --- Hole LWD/MWD Wire Line Mud Logging Notes Section NM -:� .117% gMWD, GR/RES Gas On Site Geologist 1111 133/8"in 17%"Hole 9 1/4 Triple Combo/ USIT F/400'- Mudlog On Site Geologist PWD 5350' Ir' 1/8" Triple Combo Mudlog On Site Geologist PWD SC-1 Packer @ - _ 4783'MD 111 I Completion Equipment Information E MI I ■ Stage Collar @ Item Depth MD Depth TVD OD ID 4833'MD `1 /,,is r 1! j�_VR^" McMurry-Macco SSC-SSSV 448' 448' 2.813" N/A Swell Packer @ t� 3'/2"WellStar TRSV 12.6 TCII 448' 448' 5.200" 2.813" 4902'MD 3'%"SFO-1 Mandrel 1739' 1661' 5.313" 2.867" Swell Packer @ 4910'MD 3%"SFO-1 Mandrel 3456' 2918' 5.313" 2.867" IN ',M ' 3'/2'SFO-1 Mandrel 4726' 4067' 5.313" 2.867" 7"SC-1 Production Packer 4783' 4109' 6.000" 4.000" � _ Seal Bore Extension 4789' 4114' 5.010" 3.990" Retrieving Extension 4793' 4116' 5.520" 4.710" . Fluid Loss Control Valve 4800' 4121' 5.810" 3.110" 4.5",12.6 lb/ft TC-II Blank Pipe 4809' 4128' 4.530" 3.958" ' 7"Casing in 91/4"Hole Weatherford swell packer 4902' 4192' 5.75" 4.000 II i Weatherford swell packer 4910' 4197' 5.75" 4.000 411 6 1/8"Open Hole 4.5",12.6 lb/ft TC-II Blank Pipe 4922' 4205' 4.530" 3.958" 4.0"BakerWeld 12 Ga Screen 5300' 4405' 4.450" 3.540" 4.5"wire wrap screen Imo 4.6%12.6 lb/ft TC-ll Blank Pipe 5713' 4520' 4.530" 3.958" iim mg_ 4.0"BakerWeld 12 Ga Screen 5747' 4528' 4.450" 3.540" {iM 4.5 ,12.6 lb/ft TC-Il Blank Pipe 5786' 4536' 4.530" 3.958" ® 4.0"BakerWeld 12 Ga Screen 6042' 4561' 4.450" 3.540" @ 6611e MD wrap screen TD Pack Off Sub for Slick Stinger 6605' 4563' 4.510" 2.000" GP Wash Down Shoe 6609' 4563' 4.490" NA Cementing Information Description Volume Density Yield(ft3/sx) Notes (bbls) (ppg) Surface 1st stg 152/136 13.2/14.0 1.83/1.61 Tail 13.6-14.0 ppg TD:7520'MD Surface 2nd stg 260 13.2 1.83 Plug Bumped 1600 psi Production 1st stg 53 14.0 1.61 Lost returns Production 2nd stg 276 13.2 1.83 Trace cement to MAX HOLE ANGLE = 91.89° @ 7042' MD surface UPDATED BY:la 11/07/17 • 410 Hilcorp Alaska, LLC Weekly Operations Summary Well Name Rig API Number Well Permit Number Start Date End Date M-10 Wireline 50-733-20588-00 209-154 11/18/17 11/19/17 Daily O enation .p€ , 11/18/2017-Saturday Arrive on Platform. Meeting with Production about PB Valve. Permit and JSA. Rig up wireline bridge then Rig up Slickline. P/T LUB and WLV 1500 PSI then Bleed off and put 400 PSI Gas to LUB prior to Opening Swab. RIH/w 3" XLINE R/T/w Xlock/w H Equalizing Assembly/w PB Valve (Overall Length of 60 1/2" ). NOTE: (to open the H Equalizing Assembly you will need a special H Equalizing prong). Run tools to 454' KB w/t to set w/t shear off and POOH. Standby for Production to bring on well and Test Valve-try 3 times valve keepstripping around_80psi_. RIH/w 3" GS w/ H Equalizing Prong (which is 16 1/2" length with the btm 2" 1.42" OD to manipulate the H Equalizing Assembly) to 454' KB w/t latch w/t POOH. Once out of hole break off Btm of PB Valve and Bleed an unknown amount of Pressure off Dome with 1 tap of Hammer. Make tool Back up to Xline. Put Gas to LUB to open Valve- then RIH/w 3" Xline R/T w/ H EWA w/PB Valve to 454' KB w/t set w/t shear off and POOH. OOH Standby for Production to Test Valve staying open but can not get to close. Equalize with Gas Pressure then RIH/w 3" GS/w H Equalizing Prong to 454' KB w/t latch w/t POOH. OOH/w PB Valve. Secure Lub and Prep tool for flight to beach to have dome pressure reset. Secure area and well for the Night.Turn in permit and lay down crew for night. 11/19/2017-Sunday Morning meeting, permit and JSA.Tool arrived back on Platform. Pin up to Xline then make up tools and P/T 1500 PSI, GOOD. RIH/w 3" Xline R/T/w Xlock/w H Equalizing Assembly/w PB Valve to 454' KB w/t set w/t shear and pooh. Standby for Production to flow test and closure test. Cannot get valve to shut, opens up fine.Talk to production, decide to pull to check if valve is stuck open. RIH/w 3" GS/w H Equalizing Prong to 454' KB w/t latch w/t POOH/w Valve. OOH Valve is shut. Take Valve to warm room awhile.Talk with operator and PWL personnal about Valve, then standby to try again after letting valve warm up for a few hours. RIH/w 3" Xline R/t W/Xlock and H equalizing Assembly/w PB Valve to 454' KB w/t set w/t shear and POOH. Standby for Production to flow test, well flowing,then do 4 closure tests. Valve is tripping at 67 PSI. Production is going to attempt to flow well at 70 PSI for next hour.The two biggest changes this run where not Flowing Gas lift and not pressuring up with Gas before opening Swab Valve. Rig down. ti OF TtJ� `,w\ I//yy,sv THE STATE Alaska Oil and Gas ��' ���� n tfA TAsKA Conservation Commission titrz _ 333 West Seventh Avenue irrirt \ F GOVERNOR BILL WALKER Anchorage, Alaska 99501-3572 O 11041 -- imrr'*h`� Main: 907.279.1433 ALAS Fax: 907.276.7542 SCANNED www.aogcc.alaska.gov Stan Golis Ai 74 ,1., Operations Manager Hilcorp Alaska, Inc. 3800 Centerpoint Drive, Suite 1400 Anchorage, AK 99503 Re: McArthur River Field, Middle Kenai Gas Pool, TBU M-10 Permit to Drill Number: 209-154 Sundry Number: 317-530 Dear Mr. Golis: Enclosed is the approved application for sundry approval relating to the above referenced well. Please note the conditions of approval set out in the enclosed form. As provided in AS 31.05.080, within 20 days after written notice of this decision, or such further time as the AOGCC grants for good cause shown,a person affected by it may file with the AOGCC an application for reconsideration. A request for reconsideration is considered timely if it is received by 4:30 PM on the 23rd day following the date of this letter, or the next working day if the 23rd day falls on a holiday or weekend. Sincerely, t122C-- Hollis S. French Chair DATED this [3 day of November, 2017. • • RECEIVED • STATE OF ALASKA NOV 0 -i 20,I7 ALASKA OIL AND GAS CONSERVATION COMMISSION c75 1 l,f t APPLICATION FOR SUNDRY APPROVALS AOGCC c 20 AAC 25.280 1.Type of Request: Abandon ❑ Plug Perforations❑ Fracture Stimulate ❑ Repair Well ❑ Operations shutdown❑ Suspend ❑ Perforate ❑ Other Stimulate ❑ Pull Tubing ❑ Change Approved Program❑ Plug for Redrill ❑ Perforate New Pool ❑ Re-enter Susp Well ❑ Alter Casing 0 Other. Install SSC-SSSV ❑ 2.Operator Name: 4.Current Well Class: 5.Permit to Dill Number. k_V�', 9 JUL_ Hilcorp Alaska,LLC Exploratory ❑ Development 0, 209-154 ' 3.Address: 3800 Centerpoint Drive,Suite 1400 Stratigraphic ❑ Service ❑ 6.API Number Anchorage,AK 99503 50-733-20588-00-00 7.If perforating: 8.Well Name and Number. What Regulation or Conservation Order governs well spacing in this pool? N/A Will planned perforations require a spacing exception? Yes ❑ No El ✓ Trading Bay Unit M-10 • 9.Property Designation(Lease Number): 10.Field/Pool(s): ADL0018730 • McArthur River Field/Middle Kenai Gas Pool• 11. PRESENT WELL CONDITION SUMMARY Total Depth MD(ft): Total Depth TVD(ft): Effective Depth MD: Effective Depth ND: MPSP(psi): Plugs(MD): Junk(MD): 7,520 • 4,554 • 7,520 ' 4,554 • 85 psi N/A N/A Casing Length Size MD TVD Burst Collapse Structural Conductor 490' 32" 490' 490' Surface 1,402' 13-3/8" 1,402' 1,375' 5,020 psi 2,260 psi Intermediate Production 5,789' 7" 5,789' 4,537' 7,240 psi 5,410 psi Liner Perforation Depth MD(ft): Perforation Depth ND(ft): Tubing Size: Tubing Grade: Tubing MD(ft): (Open Hole)5,789-7,520 • (Open Hole)4,537-4,554 3-1/2" 9.2#/L-80 4,783 Packers and SSSV Type: Packers and SSSV MD(ft)and TVD(ft): , SC-1 Pkr/Weatherford Swell Pkr(x2) &WellStar TRSV 4783(MD)4109(ND)/4902(MD)4192(TVD)/4910(MD)4197(TVD)&448(MD)448(TVD) 12.Attachments: Proposal Summary 3 Wellbore schematic 0 13.Well Class after proposed work: Detailed Operations Program ❑ BOP Sketch ❑ Exploratory ❑ Stratigraphic❑ Development 0' Service ❑ 14.Estimated Date for 15.Well Status after proposed work: Commencing Operations: 11/22/2017 OIL ❑ WINJ ❑ WDSPL ❑ Suspended ❑ 16.Verbal Approval: Date: GAS i]• WAG ❑ GSTOR 0 SPLUG ❑ Commission Representative: GINJ ❑ Op Shutdown El Abandoned ❑ 17. I hereby certify that the foregoing is true and the procedure approved herein will not be deviated from without prior written approval. Authorized Name: Stan W.Golis Contact Name: Dan Marlowe Authorized Title: Operations Manager Contact Emad: dmarlowe c@hilcorp.com / /( r Contact Phone: (907)283-1329 Authorized Signature: rL._- Date: I l COMMISSION 1 USE ONLY Conditions of approval: Notify Commission so that a representative may witness Sundry Number. 3 Plug Integrity ❑ BOP Test❑ Mechanical Integrity Test ❑ Location Clearance 0 Other: s t O 14 1,7 ../..._ r g t-c Y z, c_u. ` 5'S 5 V 4-- -. C(iz _ L/ L._, Post Initial Injection MIT Req'd? Yes ❑ No ❑ Spacing Exception Required? Yes ❑ No d Subsequent Form Required: /0- 4/64/ REfoaTLS i, L °i 1 4 26 17 dairr -- ( Approved by: G COMMISSIONER APPROVED BY THE COMMISSION Date: t I t� li ` ()l'A,a �l/7/� /0'70g7 7 OR ' U : 1. L A /WL / ,� ?_/ - J\\ ( Submit Form and \13 Form 10-403 Revised 4/2017 Approved application is valid for 12 months from the date of approval. Attachments in Duplicate • • Well Work Prognosis Hilcorp Alaska,LLC Well Name: TBU M-10 API Number: 50-733-20588-00-00 Current Status: Gas Well Leg: Leg A-1 Estimated Start Date: November 22, 2017 Rig: N/A Reg.Approval Req'd? 403 Date Reg.Approval Received: Regulatory Contact: Juanita Lovett Permit to Drill Number: 209-154 First Call Engineer: Dan Marlowe Office: 907-283-1329 Cell: 907-398-9904 Second Call Engineer: Stan Golis Office: 907-777-8356 Current Bottom Hole Pressure: 120 psi @ 4,405'TVD 0.027 psi/ft based on October 2017 SIBHP Maximum Expected BHP: 120 psi @ 4,405'TVD 0.027 psi/ft based on October 2017 SIBHP Maximum Potential Surface Pressure: 85 psi SITP **alternate gradient calculation requested **Using 0.1 psi/ft gradient per 20 AAC 25.280(b)(4)yields(-320)psi MPSP as SIBHP is very low Brief Well Summary f The M-10 was shut-in in August 2017 due to failure of the SSSV.Subsequent attempts to shift and lock out the TRSV have proved unsuccessful.This project will install a subsurface controlled subsurface safety valve (SSC- SSSV) in accordance with Guidance Bulletin 10-004. ✓ SSC-SSSV Suitability Evaluation: Well historic parameters Gross Gas 900 mcfd FTP 40 psig Temp 62F This safety valve will be setup with a trip pressure of"'65 psig.We will hold backpressure on the well with the production choke to maintain a normal FTP of^'75-100 psig.To test the valve the choke will be opened to lower the FTP which will trip the valve.To reset the valve the choke will be closed and well pressured up to above the trip pressure then gradually reopened to the normal operating range. Procedure: 1. MIRU Slick-line, PT lubricator to 1,500 psi Hi 250 Low. (I 2. RIH and set the subsurface controlled subsurface safety valve. YiT 3. Turn well over to production. 4. Conduct a SVS test within 5 days after stabilized flow. Attachments: LC% � 1. Current Well Schematic 2. Proposed Well Schematic 3. McMurry-Macco PB Subsurface Safety valve cut sheet •S . Trading Bay Unit 11 Steelhead Platform SCHEMATIC Well: M10 PTD:209-154 API:50-733-20588-00 llilcorp Alaska,LLC Completed: 03/08/10 RKB to TBG Head=78' Casing&Tubing Detail SIZE WT GRADE CONN MIN ID TOP BTM BTM - - N-- (MD) (ND) AW ' sssv 32" X-56 Welded 30" Surface 490' 490' '411111 32"Conductor 13-3/8" 68 L-80 BTC 12.415 Surface 1402' 1376' A ' , ( isk, ECP Stage 7" 26 L-80 H-563 6.276 Surface 5789' ` 4536" 77-4 Collar @ 411 MIL 31/2 9.2 L-80 TC-II 2.992 Surface 4783' 4110' Est TOC @ 300' Logging Detail Hole LWD/MWD Wire Line Mud Logging Notes ii Section 99 9 I �_ , 17'/2 gMWD, GR/RES Gas On Site Geologist is 13 3/8"in 17'/:"Hole Triple Combo/ USIT F/400'- 9 1/4PWD 5350' Mudlog On Site Geologist mar 6 1/8" TripIPVCoDmbo Mudlog On Site Geologist SC-1 Packer @ - ; 4783'MD I Completion Equipment Information C [ Stage Collar @ Item Depth MD Depth TVD OD ID 4833'MD r. I 3'/2"WellStar TRSV 12.6 TCII 448' 448' 5.200" 2.813" - Swell Packer@ 3'/2"SFO-1 Mandrel 1739' 1661' 5.313" 2.867" 4902'MD 3'/2'SFO-1 Mandrel 3456' 2918' 5.313" 2.867" Swell Packer @ 4910'MD 3''A"SFO-1 Mandrel 4726' 4067' 5.313" 2.867" MI 'MI • 7"SC-1 Production Packer 4783' 4109' 6.000" 4.000" •••• Seal Bore Extension 4789' 4114' 5.010" 3.990" Retrieving Extension 4793' 4116' 5.520" 4.710" Fluid Loss Control Valve 4800' 4121' 5.810" 3.110" II 4.5 ,12.6 lb/ft TC-Il Blank Pipe 4809' 4128' 4.530" 3.958" Weatherford swell packer 4902' 4192' 5.75" 4.000 iiiii I mi• Weatherford swell packer . 4910' 4197' 5.75" 4.000 7"Casing in 9 1/4"Hole 1 • i- 4.5 ,12.6 lb/ft TC-Il Blank Pipe 4922' 4205' 4.530" 3.958" 6 1/8"Open Hole 4.0"BakerWeld 12 Ga Screen 5300' 4405' 4.450" 3.540" VIARR 4.5",12.6 lb/ft TC-Il Blank Pipe 5713' 4520' 4.530" 3.958" ammo . NM 4.5"wire wrap screen ME 4.0"BakerWeld 12 Ga Screen 5747' 4528' 4.450" 3.540" MEI WIN 4.5",12.6 lb/ft TC-Il Blank Pipe 5786' 4536' 4.530" 3.958" 'MI 4.0"BakerWeld 12 Ga Screen 6042' 4561' 4.450" 3.540" i. Pack Off Sub for Slick Stinger 6605' 4563' 4.510" 2.000" 4.5"wire wrap screen TD @ 6611'MD GP Wash Down Shoe 6609' 4563' 4.490" NA Cementing Information Description Volume Density Yield(ft3/sx) Notes (bbls) (PPS) Surface 1st stg 152/136 13.2/14.0 1.83/1.61 Tail 13.6-14.0 ppg TD:7520'MD Surface 2nd stg 260 13.2 1.83 Plug Bumped 1600 psi Production 1st stg 53 14.0 1.61 Lost returns Production 2nd stg 276 13.2 1.83 Trace cement to surface MAX HOLE ANGLE = 91.89°@ 7042' MD UPDATED BY:iLL 11/07/17 Trading Bay Unit II • • Steelhead Platform PROPOSED Well: M-10 PTD:209-154 API:50-733-20588-00 Hilcorp Alaska,LLC Completed: 03/08/10 RKB to TBG Head=78' Casing&Tubing Detail SIZE WT GRADE CONN MIN ID TOP BTM BTM ,--_ (MD) (TVD) olemrilI sssv 32" X-56 Welded 30" Surface 490' 490' `°IMI' 32"Conductor 13-3/8" 68 L-80 BTC 12.415 Surface 1402' 1376' rail A I intk ECP Stage 7" 26 L-80 H-563 6.276 Surface 5789' 4536" Collar @ 411 v +'ems 31/2 9.2 L-80 TC-II 2.992 Surface 4783' 4110' Est TOC @ 300' Logging Detail Hole LWD/MWD Wire Line Mud Logging Notes ® Section Lr /' 17'/z gMWD, GR/RES Gas On Site Geologist 13 3/8"in 17 W Hole Triple Combo/ USIT F/400'- ��` 9 1/4 PWD 5350' Mudlog On Site Geologist 6 1/8° TripIPVCoDmbo Mudlog On Site Geologist SC-1 Packer @ ` ;.. 44,, 4783'MD AL I Completion Equipment Information C 11111 w Stage Collar @ Item Depth MD Depth TVD OD ID 4833'MD McMurry-Macco SSC-SSSV ±444' ±444' N/A 2.813" -' Swell Packer @ 3'/2"WellStar TRSV 12.6 TCII 448' 448' 5.200" 2.813" 4902'MD 3'/2'SFO-1 Mandrel 1739' 1661' 5.313" 2.867" Swell Packer @ = 4910'MD 3'1/2"SFO-1 Mandrel 3456' 2918' 5.313" 2.867" 1M 3'/2'SFO-1 Mandrel 4726' 4067' 5.313" 2.867" AM s -- - 7"SC-1 Production Packer 4783' 4109' 6.000" 4.000" I imm I Seal Bore Extension 4789' 4114' 5.010" 3.990" Retrieving Extension 4793' 4116' 5.520" 4.710" ■ Fluid Loss Control Valve 4800' 4121' 5.810" 3.110" 4.5",12.6 lb/ft TC-II Blank Pipe 4809' 4128' 4.530" 3.958" C Weatherford swell packer 4902' 4192' 5.75" 4.000 4 , 7" 6 1/8'Open Hole Casing in 9 1/4"Hole Weatherford swell packer 4910' 4197' 5.75" 4.000 3 `14 4.5",12.6 lb/ft TC-II Blank Pipe 4922' 4205' 4.530" 3.958" 4.0"BakerWeld 12 Ga Screen 5300' 4405' 4.450" 3.540" mg 4.5"wire wrap screen _ 4.5",12.6 lb/ft TC-II Blank Pipe 5713' 4520' 4.530" 3.958" m 4.0"BakerWeld 12 Ga Screen 5747' 4528' 4.450" 3.540" 11111 4.5 ,12.6 lb/ft TC-Il Blank Pipe 5786' 4536' 4.530" 3.958" • 4.0"BakerWeld 12 Ga Screen 6042' 4561' 4.450" 3.540" 4.5"wire wrap screen TD g @ 6611'MD Pack Off Sub for Slick Stinger 6605' 4563' 4.510" 2.000" GP Wash Down Shoe 6609' 4563' 4.490" NA Cementing Information Description Volume Density Yield(ft3/sx) Notes (bbls) (ppg) Surface 1st stg 152/136 13.2/14.0 1.83/1.61 Tail 13.6-14.0 ppg TD:7520'MD Surface 2nd stg 260 13.2 1.83 Plug Bumped 1600 psi Production 1st stg 53 14.0 1.61 Lost returns Production 2nd stg 276 13.2 1.83 Trace cement to MAX HOLE ANGLE = 91.89° @ 7042' MD surface UPDATED BY:JLL 11/07/17 • • r McMurry-Macco McMurry-Macco PB Subsurface Safety Valve Advantages • Large flow area. ' • No flow through moving parts of safety valve. • No hydraulic seals. Closing force is transmitted through liquid-filled bellows. • Predictable and repeatable valve performance. VITON ELASTOMERS • Snap-action closure. Valve disc does not throttle All elastoms p made of Vitoern.are in flow stream. • Suitable for gas lift wells. t RUBBER VITON • Easily field tested.With use of a convenient test 17 4TA ph stainless steel stand,the PB safety valve can be tested and i• ;I DISC ph stainless steel reset. WIPER SEAL • No depth limitation.The PB is suitable for a wide I •I variety of special applications. �'' i _LLOCK SPRING LOCKING BALLS { n' LOCKING SLEEVE Hold disc in open position. The PB is wireline retrievable and can be sus- Il Holds locking balls l in lock groove. pended and packed off in any standard landing I ,, CLOSING SPRING nipple with the appropriate locking device.The PB fir Provides closing force. can also be suspended and packed off in the tubing I RECOCKING SPRING string with a collar lock mandrel. I i TRIP RING Pushes locking sleeve The PB is available in a 50 to 3,000 psi range(PB) up to release disc. PRESSURE SENSING PORT and a 100 to 10,000 psi range(HP-PB). Two fine mesh screens filter trash and sand. MAIN BELLOWS (3-Ply Monel) Features Retains fluid and transmits closing force to trip ring •i; and closing spring. • Subsurface control. • BELLOWS PROTECTION UNIT • Wireline retrievability. 1 Traps fluid in bellows to • 50 to 10,000 psi operating range. protect against overextension. • Bellows protection unit. • Positive closing pressure. t' LOWER BELLOWS • Hard and soft disc-seat closing seal. (3-Ply Monel) Retains fluid and transmits Ili dome charge closing force to main bellows. DOME w - ins nitrogen charge DOME CHECK VALVE Vl' Retains nitrogen - dome charge. '' '. _.- ,,r For high pressure r� - + valve(HP-PB), TAIL PLUG this is replaced with , _ Backs up dome check valve. heavy-duty all checass mbl s , 1 �., [DOME CAP y' McMurry-Macco subsurface safety valves are certified to API 14A,ASME SPPE-1 specifications and are available for class I,or 3S service. 72 I I • a Image Project Well History File Cover Page XHVZE This page identifies those items that were not scanned during the initial production scanning phase. They are available in the original file, may be scanned during a special rescan activity or are viewable by direct inspection of the file. cQ - 1 T Well History File Identifier Organizing (done) iv Two -sided 111111111111 II 111 ❑ Rescan Needed 1111111111111111 RES AN DIGITAL DATA OVERSIZED (Scannable) C for Items: ❑Diskettes, No. ❑Maps: Greyscale Items: ❑Other, No/Type: ❑Other Items Scannable by a Large Scanner Poor Quality ❑ Q a y Originals. OVERSIZED (Non - Scannable) ❑ Other: ❑ Logs of various kinds: NOTES: ❑ Other:: BY: Maria Date: 4 1 11 /s/ mi) Project Proofing IIItIIIJIII 1111 BY: Maria i �_ Date: r ` /s/ Scanning Preparation x 30 = 7° + I W = TOTAL PAGES �a , I n i BY: Maria Date: 5- 1 L I I (Count doe no t dude cover sheet) Production Scanning III I I III I Stage 1 Page Count from Scanned File: d..•S 7 (Count does include cover heet) Page Count Matches Number in Scanning Preparation: 1/ YES NO BY: O Date: 1, J ii /s/ � f Stage 1 If NO in stage 1, page(s) discrepancies were found: YES NO BY: Maria Date: /s/ Scanning is complete at this point unless rescanning is required. I 11111 ReScanned 1111111111 IIIU BY: Maria Date: /s/ Comments about this file: Quality Checked 111 II1111III IIII 111 10/6/2005 Well History File Cover Page.doc DATA SUBMITTAL COMPLIANCE REPORT 4/28/2011 Permit to Drill 2091540 Well Name /No. TRADING BAY UNIT M -10 Operator UNION OIL CO OF CALIFORNIA API No. 50- 733 - 20588 -00 -00 MD 7520 TVD 4556 Completion Date 2/11/2010 Completion Status 1 -GAS Current Status 1 -GAS UIC N REQUIRED INFORMATION Mud Log No Samples No Directional Survey Y� DATA INFORMATION Types Electric or Other Logs Run: GR, RES, GR /RES, NEU, DEN, USIT, MUD LOG (data taken from Logs Portion of Master Well Data Maint Well Log Information: Log/ Electr Data Digital Dataset Log Log Run Interval OH l • Type Med /Frmt Number Name Scale Media No Start Stop CH Received Comments Cog Induction /Resistivity 2 Col 380 7491 Open 4/23/2010 MD Vision Service Induction /Resistivity 2 Col 380 7491 Open 4/23/2010 TVD Vision Service ,,Kg Induction /Resistivity 2 Col 380 6906 Open 4/23/2010 PB1 MD Vision Service g Induction /Resistivity 2 Col 380 6906 Open 4/23/2010 PB1 TVD Vision Service Report: Final Well R 0 0 4/23/2010 End of Well report ( `-T ,ED C Dls 19562 'induction /Resistivity 380 7491 Open 4/23/2010 Final Data, Surveys, Mudlogs, Vision Service Plus PB1 / Graphics Files Y L,�J Density 2 Col 1350 6900 Case 4/26/2010 PB1 AND Processed Image Derived Density .EIS C Pds 19564•'Density 1350 6900 Case 4/26/2010 PB1 AND Proc Image Derived Dens -_ og Cement Evaluation 5 Col 130 5340 Case 4/26/2010 USIT, Cement Evaluation Tool, GR, CCL -ED C Pds 19564 Sonic 5 130 5340 Case 4/26/2010 USIT, Cement Evaluation III Tool, GR, CCL hpt Report: Final Well R 0 0 6/29/2010 Final Well Report, Tab of Cont, Equip, Well Details, Geo Data, Drill Data, Daily Reps and PB1 info C Pdf 19779 R port: Final Well R 0 0 Open 6/29/2010 Final Well Report, Tab of Cont, Equip, Well Details, Geo Data, Drill Data, Daily Reps w /PB1 electric graphics and Mud Logs 1Log Mud Log 2 Col 4042 7520 Open 6/29/2010 MD LWD Combo --Cog Mud Log 2 Col 4042 6940 Open 6/29/2010 PB1 MD LWD Combo L -- DATA SUBMITTAL COMPLIANCE REPORT 4/28/2011 Permit to Drill 2091540 Well Name /No. TRADING BAY UNIT M -10 Operator UNION OIL CO OF CALIFORNIA API No. 50- 733 - 20588 -00 -00 MD 7520 TVD 4556 Completion Date 2/11/2010 Completion Status 1 -GAS Current Status 1 -GAS UIC N L og Mud Log 2 Col 4042 6940 Open 6/29/2010 PB1 TVD LWD Combo og Mud Log 2 Col 4042 7520 Open 6/29/2010 MD Drilling Dynamics _I Log Mud Log 2 Col 4042 6940 Open 6/29/2010 PB1 MD Drilling Dynamics -Log Mud Log 2 Col 4042 6940 Open 6/29/2010 PB1 TVD Drilling Dynamics og Mud Log 2 Col 4042 7520 Open 6/29/2010 MD Gas Ratio og Mud Log 2 Col 4042 6940 Open 6/29/2010 PB1 MD Gas Ratio Log Mud Log 2 Col 4042 6940 Open 6/29/2010 PB1 TVD Gas Ratio • Log Mud Log 2 Col 4042 7520 Open 6/29/2010 MD Formation Log Log Mud Log 2 Col 4042 6940 Open 6/29/2010 PB1 MD Formation Log • og Mud Log 2 Col 4042 6940 Open 6/29/2010 PB1 TVD Formation Log I r D C Las 19805Tduction /Resistivity 380 7519 Open 6/29/2010 EWR, Final, LAS, LIS, Form Eval with PB1 all digital Apt Directional Survey 0 7520 Open pt Directional Survey 0 6940 Open PB1 Well Cores /Samples Information: Sample Interval Set Name Start Stop Sent Received Number Comments ADDITIONAL INFORMATION (; W • ell Cored? Y/4 Daily History Received? N Chips Received? Y / /4 N Formation Tops o / N Analysis LY 1-N Received? Comments: Compliance Reviewed By: Date: p C.,S kir , otJU 1 ( ____ • • Chevron Francisco Castro Chevron North America Exploration and Production .;., Technical Assistant 3800 Centerpoint Dr. Suite 100 Anchorage, AK 99503 Tele: 907 263 7844 Fax: 907 263 7828 E -mail: fcbn @chevron.com DATE June 28, 2010 ,4 , To: AOGCC Mahnken, Christine R 333 W. 7 Ave. Ste #100 Anchorage, AK 99501 I DATA TRANSMITTAL Transmitted herewith is one DVD containing the following data. • D -48L1 ` �� �� • Formation evaluation Togs - LAS /`5 (l • Gamma ray logs - LAS • K -12RD2 00-15 • K- 12RD2Final_Survey.xls • K- 12RD2__Tops.xlsx Sot ` / c ) /Q • MPR -Gamma ray logs - LAS, CGM, PDF • K -18RD 0o / - / /'4 C9 • K- 18RD_Final_Survey.doc • Density Neutron logs - LAS / 9 td t • K- 18RDPB1 045/ / • UBI log - LAS, PDS, DLIS 00 °5 r y qj �b • survey.xls /� � • K -24RD2 X63 /ta • Density Neutron logs - LAS • Final Mudlog Report - LAS, DOC c7O2 -f9 6 / • M -06 • Final logs; Depth, Formation Evaluation, Realtime, Time - LAS, PDS, DLIS • M -10 , ,001S" -- /(o.9 /5 t /c7 • M- 10Tops.xlsx • USIT log - PDS 069 -05 Y, 3 • Final logs; Depth, Formation Evaluation, Realtime, Time - LAS, PDS, DLIS • M -10PB1 • Final logs; Depth, Formation Evaluation, Realtime, Time - LAS, PDS, DLIS • M -16RD i" - 6 / 9 al • M- 16RD_Tops.xlsx • Final logs; Cement Bond Log, Completion Record -PDS • M -17 • M- 17_Tops.xlsx • M17_MWD_Survey.pdf • Final Mudlog Report - LAS, DOC, DBF, MDX, PDF, DAT • Final logs; Depth, Formation Evaluation, Cement Bond, Plug Setting, Perforation - LAS, PDS, DLIS, TIFF Please acknowledge receipt by signing and returning one copy of this transmittal or FAX to 907 263 7828. Received By: Date: ip Chevron •bra Oudean Chevron Nortleerica Exploration and Production Technical Assistant 3800 Centerpoint Dr. Suite 100 Anchorage, AK 99503 Tele: 907 263 7889 Fax: 907 263 7828 E -mail: oudeand @chevron.com DATE June 24, 2010 To: AOGCC Mahnken, Christine R 333 W. 7 Ave. Ste #100 Anchorage, AK 99501 DATA TRANSMITTAL PERMIT # WELL LOG TYPE LOG DATE INTERVAL B- CD LOGGED LINE 209 -1540 TBU M -10 & M- FINAL WELL REPORT 1/7/2010 X X 10 PB1 209 -1540 TBU M -10 FORMATION LOG MD 1/20/10 - 4042 -7520 X 2/05/10 209 -1540 TBU M -10 LWD COMBO LOG MD 1/20/10 - 4042 -7520 X 2/05/10 209 -1540 TBU M -10 GAS RATIO LOG MD 1/20/10 - 4042 -7520 X 2/05/10 209 -1540 TBU M -10 DRILLING DYNAMICS MD 1/20/10- 2/05/10 4042 -7520 X 209 -1540 TBU M -10 PB1 FORMATION LOG MD / FORMATION LOG TVD 1/8/10- 1/19/10 480 -6940 X 209 -1540 TBU M -10 PB1 LWD COMBO LOG MD / LWD COMBO LOG TVD 1/8/10- 1/19/10 480 -6940 X 209 -1540 TBU M -10 PB1 GAS RATIO LOG MD / GAS RATIO LOG TVD 1/8/10- 1/19/10 480 -6940 X 209 -1540 TBU M -10 PB1 DRILLING DYNAMICS MD / DRILLING DYNAMICS 1/8/10- 1/19/10 480 -6940 X TVD Dg -,s4/ / 41 RECEI VE- - Please acknowled e receipt by signing and returning one copy of this transmittal or FAX to 907 263 7828. Received By: Date: i II • Chevron Debra Oudean Chevron North America Exploration and Production Technical Assistant 3800 Centerpoint Dr. Suite 100 Anchorage, AK 99503 Tele: 907 263 7889 Fax: 907 263 7828 E -mail: oudeand @chevron.com DATE April 22, 2010 To: AOGCC Mahnken, Christine R 333 W. 7 Ave. Ste #100 Anchorage, AK 99501 DATA TRANSMITTAL WELL . LOG TYPE LOG DATE . INTERVAL LOGGED RUN # B -LINE CD TBU M -10 USIT — Cement Evaluation 2/02/2010 130 -5340 1 X X Ultrasonic Imaging Tool — GR/CCL TBU M -10 PB1 _ADN Processed Image Derived Density 1/18/2010 X X cj4 -i5`/ ig sv - r Please acknowledg- receip by signing and returning one copy RECEdtaYoe 907 263 7828. Received By: ` d A Date: APR 10 low L Anci.age • • Chevron Debra Oudean Chevron North America Exploration and Production Technical Assistant 3800 Centerpoint Dr. Suite 100 Anchorage, AK 99503 Tele: 907 263 7889 Fax: 907 263 7828 E -mail: oudeand @chevron.com DATE April 20, 2010 To: AOGCC Mahnken, Christine R 333 W. 7 Ave. Ste #100 Anchorage, AK 99501 DATA TRANSMITTAL WELL LOG TYPE SCALE LOG DATE INTERVAL RUN B- CD LOGGED # LINE TBU M -10 PB1 VISION SERVICE MEASURED DEPTH RECORDED 2" 1/13- 18/2010 380 -6906 X MODE 1:600 TBU M -10 PB1 VISION SERVICE TRUE VERTICAL DEPTH 2" 1/13- 18/2010 380 -6906 X RECORDED MODE 1:600 TBU M -10 VISION SERVICE MEASURED DEPTH RECORDED 2" 1/13- 18/2010 380 -6906 X MODE 1:600 TBU M -10 VISION SERVICE TRUE VERTICAL DEPTH 2" 1/13- 18/2010 380 -6906 X RECORDED MODE 1:600 WELL REPORT REPORT DATE TBU M -10 Survey Report 2/08/2010 TBU M -10 PB1 Survey Report 1/22/2010 TBU M -10 / M -10 PB1 End of Well Report 2/02/2010 WELL CD CD DATE TBU M -10 / M -10 PB1 Final Data CD: Ascii Data, Depth Reports,DLIS, PDS Data, Reports, Surveys 4/02/2010 � f Please acknowl- .ge receipt by signing and returning one copy of i 1 g .a F# 07 263 7828. R e c e i v e d : Date: APR 23 201; - :_ .._ CI 1 CCs. Comrshaion • • Chevron Debra Oudean Chevron North America Exploration and Production Technical Assistant 3800 Centerpoint Dr. Suite 100 Anchorage, AK 99503 %. Tele: 907 263 7889 Fax: 907 263 7828 E -mail: oudeand @chevron.com DATE April 20, 2010 To: AOGCC Mahnken, Christine R 333 W. 7 Ave. Ste #100 Anchorage, AK 99501 DATA TRANSMITTAL WELL LOG TYPE SCALE LOG DATE OGGED RUN LINE CD TBU M -10 PB1 VISION SERVICE MEASURED DEPTH RECORDED 2" 1/13- 18/2010 380 -6906 X MODE 1:600 TBU M -10 PB1 VISION SERVICE TRUE VERTICAL DEPTH 2" 1/13- 18/2010 380 -6906 X RECORDED MODE 1:600 TBU M -10 VISION SERVICE MEASURED DEPTH RECORDED 2" 1/13- 18/2010 380 -6906 X MODE 1:600 TBU M -10 VISION SERVICE TRUE VERTICAL DEPTH 2" 1/13- 18/2010 380 -6906 X RECORDED MODE 1:600 WELL REPORT REPORT DATE TBU M -10 Survey Report 2/08/2010 TBU M -10 PB1 Survey Report 1/22/2010 TBU M -10 / M -10 PB1 End of Well Report 2/02/2010 WELL CD CD DATE TBU M -10 / M -10 PB1 Final Data CD: Ascii Data, Depth Reports,DLIS, PDS Data, Reports, Surveys 4/02/2010 OD s ( s ( 1 Please acknowledge receipt by signing and returning one copy of tBCii'I 07 263 7828. Received By: /' Dare: APR 3 2010 Y Alaska 04 & Gas Cons. Commission Anchorage t 4 STATE OF ALASKA ALASKA AND GAS CONSERVATION COMMISSI GAS WELL OPEN FLOW POTENTIAL TEST REPORT 1a. Test: U Initial U Annual U Special 1b. Type Test: U Stabilized U Non Stabilized U Multipoint ❑ Constant Time El Isochronal ❑ Other 2. Operator Name: 5. Date Completed: 11. Permit to Drill Number: Union Oil Company of California 2/12/2010 209 -1540 3. Address: 6. Date TD Reached: 12. API Number: PO Box 196247, Anchorage, AK 99519 January 28, 2010 50- 733 - 20588 -00 4a. Location of Well (Governmental Section): 7. KB Elevation (ft): 13. Well Name and Number: Surface: 1,052'FNL. 464' FWL, Sec 33, T9N, R13W, S.M. 160' Steelhead M -10 Top of Productive Horizon: 8. Plug Back Depth(MD +TVD): 14. Field /Pool(s): 1,321'FNL. 525' FWL, Sec 33, T9N, R13W, S.M. 7,520'MD (4,554'TVD) McArthur River Field Total Depth: 9. Total Depth (MD + TVD): Middle Kenia Gas Pool 185'FNL. 1,661' FWL, Sec 28, T9N, R13W, S.M. 7,520'MD (4,554'TVD) 4b. Location of Well (State Base Plane Coordinates): 10. Land Use Permit: 15. Property Designation: Surface: x- 214080.00 y- 2499450.00 Zone- 4 N/A ADL 18730 [Steelhead Platform] TPI: x- 214136.00 y- 2499180.00 Zone- 4 16. Type of Completion (Describe): Total Depth: x- 215307.00 y- 2500658.00 Zone- 4 perforated casing 17. Casing Size Weight per foot, Ib. I.D. in inches Set at ft. 19. Perforations: From To 7" 26 6.276 5,789 4.5" Wire wrap screen 18. Tubing Size Weight per foot, Ib. I.D. in inches Set at ft. in 6 1/8" Open hole horizontal 3.5 "/4.5" 9.2/12.6 2.992/3.54 4780/5300 5,300 MD 6,604' MD 20. Packer set at ft: 21. GOR cf /bbl: 22. API Liquid Hydrocardbons: 23. Specific Gravity Flowing Fluid (G): 4783 NA NA NA 24a. Producing through: 24b. Reservoir Temp: 24c. Reservoir Pressure: 24d. Barometric Pressure (Pa): El Tubing ❑ Casing 120 F° 504 psia @ Datum 4400 TVDSS 14.7 psia 25. Length of Flow Channel (L): Vertical Depth (H): Gg: % CO % N % H Prover: Meter Run: Taps: NA NA 0.56 0 0 0 26. FLOW DATA TUBING DATA CASING DATA Prover Choke Pressure Diff. Temp. Pressure Temp. Pressure Temp. Duration of Flow No. Line X Orifice psig Hw F psig F psig F Hr. Size (in.) Size (in.) 1. X 401 63 2. X 372 69 4 3. X 339 71 4 4. X 281 72 4 5. X 162 73 4 Basic Coefficient Flow Temp. Super Comp. No. (24 -Hour) - I hwPm Pressure Factor Gravity Factor Factor Rate of Flow Fb or Fp Pm Ft Fg O� Mcfd Fpv 1. 0 2. 4000 3. 5000 4. 5800 5. 7000 Temperature for Separator for Flowing No. Pr T Tr z Gas Fluid Gg G 1. 523 1.524781 0.956 2. 0.552748886 529 1.542274 0.9589 3. 0.50371471 531 1.548105 0.9623 Critical Pressure 673 4. 0.417533432 532 1.55102 0.9682 Critical Temperature 345 5. 0.240713224 533 1.5539 0.9807 RBDMS APR 14 2010 9 Form 10 -421 Revised 1/2004 CONTINUED ON REVERSE SIDE Submit in Duplicate - Pc 415.7 pct 172806.49 S • 504 pf 254016 No. Pt Pt Pc2-Pt2 Pw Pw Pc Ps Ps Pf -Ps , 1. 2. 386.7 149536.89 23269.6 83.3 6938.89 165867.6 470 220900 33116 3. 353.5 124962.25 47844.24 111.5 12432.25 160374.24 465 216225 37791 4. 295.7 87438.49 85368 146.3 21403.69 151402.8 442 195364 58652 5. 176.7 31222.89 141583.6 237.3 56311.29 116495.2 414 171396 82620 25. AOF (Mcfd) 11,970 n 0.41 Remarks: I hereby certifyThat th- foregoing is rue and correct to the best of my knowledge. . ../ 1 ./ Signed //''f// Title Petroleum Engineer Date 4/7/2010 1,r 14-a_Ls,ftefriaz_ 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 / -1hwPm Fp Basic critical flow prover or positive choke factor Mcfd /psia Fg Specific gravity factor, dimensionless Fpv Super compressibility factor= 1 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 4111 • Chevron Steelhead Platform 14110 Well M -10 %11. Final 2 -20 -10 RKB to TBG Head = 78' Casing &Tubing Detail SIZE WT GRADE CONN MIN ID TOP BTM BTM - J . (MD) (TVD) sssv 32" X -56 Welded 30" Surface 490' 490' 32" Conductor 13 -3/8" 68 L -80 BTC 12.415 Surface 1402' 1376' d■ . Iii, ECP Stage 7" 26 L -80 H -563 6.276 Surface 5789' 4536' Collar @ 411 31/2 9.2 L -80 TC -II 2.992 Surface 4780' 4119' Est TOC @ 300' Logging Detail Hole LWD /MWD Wire Line Mud Logging Notes Section A 13 3/8" in 17 %" Hole 17'/2 gMWD, GR/RES Gas On Site Geologist 0 9 1/4 Triplee Combo/ USI535000 Mudlog On Site Geologist 6 1/8° Triple C combo Mudlog On Site Geologist Completion Equipment Information . . Stage Collar @ 4835'MD Item Depth MD Depth TVD OD ID 3' %" WellStar TRSV 12.6 TCII 447' 447' 5.200" 2.813" g 3'/" SFO -1 Mandrel 1739' 1652 5.270" 2.992" SC-1 Packer@ 4783'MD 3 SFO -1 Mandrel 3455' 2917 5.270" 2.992" 3' %" SFO -1 Mandrel 4726' 4066 5.270" 2.992" Swell Packer @ 4909'MD 7" SC -1 Production Packer 4783' 4110' 5.010" 3.990" . , Seal Bore Extension 4788' 4114' 5.000" 4.000" 7" Casing in 9 1/4" Hole Retrieving Extension 4793' 4118' 5.520" 4.710" Fluid Loss Control Valve 4799' 4121' 5.810" 3.310" roe 6 1/8" Open Hole 4.6 %12.6 lb/ft TC -II Blank Pipe 4808' 4128' 4.530" 3.958" Weatherford swell packer 4909' 4196' 5.75" 4.000 4.59" BakerWeld 12 Ga Screen 5300 4404' 4.520" 3.540" Pack Off Sub for Slick Stinger 6604' 4566" 4.510" 2.000" 4.5" wire wrap screen Cementing Information Volume Description (bbls) D ppg)y Yield (ft3 /sx) Notes 4.5" wire wrap screen TD S 1st stg 52/136 13.2/14.0 1.83/1.61 Tail 13.6 -14.0 @ 6605'MD 9 ppg Surface 2 " stg 260 13.2 1.83 Plug Bumped 1600 psi ' TD: 7126' MD Production 1 stg 53 14.0 1.61 Lost retums Production 2 ntl stg 276 13.2 1.83 Trace cement to surface MAX HOLE ANGLE = 91.89° @ 7042' MD Well retail 11Pr)ATFI) RY TSF 02 /19/10 RECEIVED w�� STATE OF ALASKA + o ;14l ZDlo ALASKA OIL AND GAS CONSERVATION COMMISSION MAR 1Vig COMPLETION OR RECOMPLETION REPORT AND LOG ..__d1tas:_ s IO • SPLUG ❑ Other ❑ Abandoned ❑ Suspended❑ lb. Well Class: y� ��1 W1� 20AAC 25.105 20AAC 25.110 Development El • Exploratory ❑ GINfJVINJ ❑ WAG ❑ WDSPL ❑ No. of Completions: Service ❑ Stratigraphic Test ❑ 2. Operator Name: 5. Date Comp., Susp., or 12. Permit to Drill Number: Union Oil Company of California Aband.: 2/11/2010 • 209 -1540 • 3. Address: 6. Date Spudded: 13. API Number: PO Box 196247, Anchorage, Alaska, 99519 1/7/2010 50- 733 - 20588 -00 -00 • 4a. Location of Well (Governmental Section): 7. Date TD Reached: 14. Well Name and Number: Surface: 1,052'FNL. 464' FWL, Sec 33, T9N, R13W, S.M. ' 2/5/2010 Trading Bay Unit M -10 . Top of Productive Horizon: 8. KB (ft above MSL): 160 • 15. Field /Pool(s): 1,321'FNL. 525' FWL, Sec 33, T9N, R13W, S.M. GL Ground (ft MSL): McArthur River Field . Total Depth: 9. Plug Back Depth(MD 185'FNL. 1,661' FWL, Sec 28, T9N, R13W, S.M. 7,520'MD (4,,,534'TV110p . /L Middle Kenai Gas Pool 4b. Location of Well (State Base Plane Coordinates, NAD 27): 10. Total Depth (MD + TVD): / 16. Property )esignation: Surface: x- 214080 • y- 2499450 • Zone- 4 • 7,520'MD ( D) 5� 7 7 A1/4 - 61.: 1 1E - 130 [Steelhead Platform] TPI: x- 214136 y- 2499180 Zone- 4 11. SSSV Depth,(� + TVD): 17. Land Use Permit: Total Depth: x- 215307. • y- 2500658 • Zone- 4 447'MD (5A'PTVD) N/A 18. Directional Survey: Yes 0 No ❑ 19. Water Depth, if Offshore , cv. Thickness of Permafrost MD/TVD: (Submit electronic and printed information per 20 AAC 25.050) 185' (ft MSL) N/A 21. Logs Obtained (List all logs here and submit electronic and printed information per 20AAC25.071): 22.Re- drill /Lateral Top Window MD/TVD: GR/Resistivity,GR/Resistivity /Neutron /Density,USIT, Mud log . N/A 23. CASING, LINER AND CEMENTING RECORD WT. PER SETTING DEPTH MD SETTING DEPTH TVD AMOUNT CASING FT GRADE TOP BOTTOM TOP BOTTOM HOLE SIZE CEMENTING RECORD PULLED 28 -32 X -56 Surface 490' Surface 490' Driven N/A 152bb1 13.2ppg lead /136bbl / 13 -3/8" 68 L -80 Surface 1,402' Surface 1,376' 17 -1/2" 13.6 -14ppg class G cement tail (stage 1) & 260bb1 13.2ppg V class G cement (stage 2) 53bb1 14ppg class G cement 7" 26 L -81 Surface 5,789' Surface 4,536' 9 -1/4" (stage 1) & 276bb113.2ppg / class G cement (stage 2) 4" 12.6 L -82 4,783' 6,611' 4,110' 4,562' 6 -1/8" N/A 24. Open to production or injection? Yes Ell No ❑ If Yes, list each 25. TUBING RECORD interval open (MD +TVD of Top & Bottom; Perforation Size and Number): SIZE DEPTH SET (MD) PACKER SET ( MD/TVD) Open hole completion 5,789'- 7,520'MD (4,536'- 4,554'TVD) 3 -1/2" 4,783' 4,783'MD (4,110'TVD) 26. ACID, FRACTURE, CEMENT SQUEEZE, ETC. DEPTH INTERVAL (MD) AMOUNT AND KIND OF MATERIAL USED N/A N/A 27. PRODUCTION TEST Date First Production: Method of Operation (Flowing, gas lift, etc.): 2/11/2010 Flowing Date of Test: Hours Tested: Production for Oil -Bbl: Gas -MCF: Water -Bbl: Choke Size: Gas -Oil Ratio: 2/21/2010 24 Test Period .-4o- 0 6040 0 N/A N/A Flow Tubing Casing Press: Calculated Oil -Bbl: Gas -MCF: Water -Bbl: Oil Gravity - API (corr): Press. 189 psi 65 psi 24 -Hour Rate —► 0 6040 0 N/A 28. CORE DATA Conventional Core(s) Acquired? Yes ❑ No El ' Sidewall Cores Acquired? Yes ❑ No El 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 25.071. r MH-Frj £ " -v U ; . RBDMS MAR 1 2 zoin Tr IN.) � Form 10 -407 Revised 12/2009 CONTINUED ON REVERSE Submit original only . 3'1') • • 29. GEOLOGIC MARKERS (List all formations and markers encountered): 30. 4.1/4u FORMATION TESTS NAME MD TVD Well tested? 2 Yes ❑ No If yes, list intervals and formations tested, briefly summarizing test results. Attach separate sheets to this form, if Permafrost - Top needed, and submit detailed test information per 20 AAC 25.071. Permafrost - Base See attached formation top Information Formation at total depth: 31. List of Attachments: 32. I hereby certify that the foregoing is true and correct to the best of my knowledge. Contact: Tim Flynn 263 -7824 Printed Name: Timothy C. Brandenburg Title: Drilling Manager I' Signature: -_ Phone: 276 -7600 Date: 3/10/2010 INSTRUCTIONS General: This form is designed for submitting a complete and correct well completion report and log on all types of lands and leases in Alaska. Submit a well schematic diagram with each 10-407 well completion report and 10 -404 well sundry report when the downhole well design is changed. Item lb: 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 23: Attached supplemental records for this well should show the details of any multiple stage cementing and the location of the cementing tool. Item 24: If this well is completed for separate production from more than one interval (multiple completion), so state in item 1, and in item 23 show the producing intervals for only the interval reported in item 26. (Submit a separate form for each additional interval to be separately produced, showing the data pertinent to such interval). Item 27: Method of Operation: Flowing, Gas Lift, Rod Pump, Hydraulic Pump, Submersible, Water Injection, Gas Injection, Shut -in, or Other (explain). Item 28: Provide a listing of intervals cored and the corresponding formations, and a brief description in this box. Submit detailed description and analytical laboratory information required by 20 AAC 25.071. Item 30: Provide a listing of intervals tested and the corresponding formation, and a brief summary in this box. Submit detailed test and analytical laboratory information required by 20 AAC 25.071. Form 10 -407 Revised 12/2009 Steelhead M -10PB1 Formation Tops Chevron API No: 50- 733 - 20588 -70 1400 APD: 209 -154 -0 %I. Well Surface ft MDbrf ft TVDbrf ft TVDss Well Surface ft MDbrf ft TVDbrf ft TVDss M -10PB1 SZOCT 801.1 800.4 -640.4 M -10PB1 B3CT 4098.8 3520.2 - 3360.2 M -10PB1 SZ3CT 993.6 990.1 -830.1 M -10PB1 B5ST 4138.5 3557.0 - 3397.0 M -10PB1 SZ5ST 1091.2 1084.9 -924.9 M -10PB1 B4CT 4210.0 3622.9 - 3462.9 M -10PB1 SZ6ST 1148.9 1140.1 -980.1 M -10PB1 B6ST 4227.4 3639.0 - 3479.0 M -10PB1 SZ7CT 1284.9 1268.2 - 1108.2 M -10PB1 B6ST 4248.3 3658.2 - 3498.2 M -10PB1 SZ1OCT 1495.8 1459.5 - 1299.5 M -10PB1 B5CT 4310.1 3714.5 - 3554.5 M -10PB1 SZ11ST 1592.3 1542.5 - 1382.5 M -10PB1 B5CT 4310.1 3714.5 - 3554.5 M -10PB1 SZ11CT 1694.8 1626.5 - 1466.5 M -10PB1 B7ST 4369.6 3768.4 - 3608.4 M -10PB1 SZ12CT 1790.1 1700.5 - 1540.5 M -10PB1 CCT 4482.1 3869.1 - 3709.1 M -10PB1 SZ13CT 1887.9 1772.1 - 1612.1 M -10PB1 C1ST 4548.0 3926.8 - 3766.8 M -10PB1 SZ17ST 2361.7 2095.2 - 1935.2 M -10PB1 C1CT 4624.8 3992.6 - 3832.6 M -10PB1 SZ18CT 2578.2 2243.8 - 2083.8 M -10PB1 C2ST 4641.6 4006.5 - 3846.5 M -10PB1 SZ19CT 2671.6 2307.8 - 2147.8 M -10PB1 C2CT 4643.4 4008.0 - 3848.0 M -10PB1 SZ21ST 2781.4 2382.9 - 2222.9 M -10PB1 C3ST 4671.6 4031.3 - 3871.3 M -10PB1 SZ22ST 2935.6 2491.2 - 2331.2 M -10PB1 C4ST 4753.7 4097.7 - 3937.7 M -10PB1 SZ22CT 2971.7 2517.8 - 2357.8 M -10PB1 C3CT 4809.3 4141.5 - 3981.5 M -10PB1 ACT 3149.2 2655.5 - 2495.5 M -10PB1 C5ST 4843.3 4167.0 - 4007.0 M -10PB1 A1ST 3161.1 2665.1 - 2505.1 M -10PB1 DCT 4940.0 4237.8 - 4077.8 M -10PB1 A2ST 3207.7 2703.1 - 2543.1 M -10PB1 D1ST 4988.4 4272.1 - 4112.1 0 M -10PB1 A2CT 3312.5 2791.3 - 2631.3 M -10PB1 D1CT 5361.1 4496.3 - 4336.3 M -10PB1 A3ST 3366.7 2838.2 - 2678.2 M -10PB1 D2ST 5495.9 4559.6 - 4399.6 M -10PB1 A4CT 3459.0 2920.3 - 2760.3 M -10PB1 D2CT 5825.5 4665.9 - 4505.9 M -10PB1 A5ST 3505.7 2962.8 - 2802.8 M -10PB1 D3BST 6066.4 4705.0 - 4545.0 M -10PB1 A5CT 3585.4 3036.6 - 2876.6 M -10PB1 D3CT 6483.9 4832.2 - 4672.2 M -10PB1 A6ST 3627.0 3075.9 - 2915.9 M -10PB1 D4CT 6695.9 4946.0 - 4786.0 M -10PB1 BCT 3739.8 3182.9 - 3022.9 M -10PB1 D5CT 6742.8 4975.2 - 4815.2 M -10PB1 B1ST 3767.2 3209.0 - 3049.0 M -10PB1 D6ST 6791.6 5005.9 - 4845.9 M -10PB1 B2ST 3804.6 3244.5 - 3084.5 M -10PB1 D6CT 6864.1 5054.1 - 4894.1 M -10PB1 B1CT 3872.1 3308.3 - 3148.3 M -10PB1 TD 6940.1 5105.8 - 4945.8 M -10PB1 B3ST 3891.2 3326.3 - 3166.3 M -10PB1 B4ST 4000.5 3428.7 - 3268.7 M -10PB1 B2CT 4084.5 3506.9 - 3346.9 , Steelhead M -10 Formation Tops Chevron API No: 50- 733 - 20588 -00 %NO APD: 209 -154 -0 %0 Well Surface ft MDbrf ft TVDbrf ft TVDss Well Surface ft MDbrf ft TVDbrf ft TVDss M -10 SZOCT 801.1 800.4 -640. M -10 B3CT 4100.3 3521.3 - 3361.2 M -10 SZ3CT 993.6 990.1 -830.: M -10 B5ST 4136.1 3554.5 - 3394.5 M -10 SZ5ST 1091.2 1084.9 -924.5 M -10 B4CT 4211.4 3624.3 - 3464.2 M -10 SZ6ST 1148.9 1140.1 -980.: M -10 B6ST 4253.6 3663.3 - 3503.2 M -10 SZ7CT 1284.9 1268.2 - 1108.; M -10 B5CT 4313.5 3718.1 - 3558.: • M -10 SZ1OCT 1495.8 1459.5 - 1299.5 M -10 B7ST 4372.5 3771.7 - 3611.: M -10 SZ11ST 1592.3 1542.5 - 1382.5 M -10 CCT 4486.4 3873.1 -3713.: M -10 SZ11CT 1694.8 1626.5 - 1466.5 M -10 C1ST 4561.9 3937.1 -3777.: M -10 SZ12CT 1790.1 1700.5 - 1540.5 M -10 C2ST 4614.6 3979.9 - 3819.5 M -10 SZ13CT 1887.9 1772.1 -1612.: M -10 C1CT 4641.8 4001.7 - 3841.; M -10 SZ17ST 2361.7 2095.2 - 1935.: M -10 C3ST 4679.0 4030.9 -3870.S M -10 SZ18CT 2578.2 2243.8 - 2083.E M -10 C4ST 4777.6 4105.5 - 3945.5 M -10 SZ19CT 2671.6 2307.8 - 2147.E M -10 C3CT 4837.0 4147.9 - 3987.5 M -10 SZ21ST 2781.4 2382.9 -2222.S M -10 C5ST 4873.2 4172.7 - 4012.; M -10 SZ22ST 2935.6 2491.2 - 2331.: M -10 DCT 4980.6 4241.9 - 4081.5 M -10 SZ22CT 2971.7 2517.8 - 2357.E M -10 D1ST 5045.7 4280.8 - 4120.E M -10 ACT 3149.2 2655.5 - 2495.5 M -10 D1CT 5614.7 4494.3 - 4334.2 M -10 A1ST 3161.1 2665.1 - 2505.: M -10 D2ST 5992.4 4559.4 - 4399. M -10 A2ST 3207.7 2703.1 - 2543.: M -10 TD _ 7520.0 4555.1 - 4395._ • M -10 A2CT 3312.5 2791.3 - 2631.2 M -10 A3ST 3366.7 2838.2 - 2678.: M -10 A4CT 3459.0 2920.3 - 2760.2 M -10 A5ST 3505.7 2962.8 - 2802.E M -10 A5CT 3585.4 3036.6 - 2876.E M -10 A6ST 3627.0 3075.9 - 2915.5 M -10 BCT 3739.8 3182.9 -3022.S M -10 B1ST 3767.2 3209.0 - 3049.( M -10 B2ST 3804.6 3244.5 - 3084.5 M -10 B1CT 3872.1 3308.3 - 3148.; M -10 B3ST 3891.2 3326.3 - 3166.2 M -10 B4ST 4000.5 3428.7 - 3268.; M -10 B2CT 4084.5 3506.9 -3346. Chevron • • 1 10 Chevron - Alaska 1 %. Daily Operations Summary Well Name Legal Well Name Lease Surface UWI ChevNo Original RKB (ft) Water Depth (ft) M -10 TRADING BAY UNIT M -10 5073320588 LX8255 160.00 185.00 Primary Job Type Job Category Objective . Actual Start Date Actual End Date Drill and Complete Drill and 12/15/2009 Complete Primary Wellbore Affected Wellbore UWI Well Permit Number M -10 Final 507332058800 2091540 Daily Operations .._ . 1/3/2010 00:00 - 1/4/2010 00:00 Operations Summary Begin rigging up. 1/4/2010 00:00 - 1/5/2010 00:00 Operations Summary Build spud mud. Finish installing diverter line. Continue to rig up and prepare for spud. 1/5/2010 00:00 - 1/6/2010 00:00 Operations Summary Continue rig up. 1/6/2010 00:00 - 1/712010 00:00 Operations Summary Conduct Pre - spud /Incident Free Operations safety meeting. Mobe personnel to platform. 1/7/2010 00:00 - 1/8/2010 00:00 Operations Summary Mix Spud Mud 9.0 ppg, Pick Up BHA - '• • - -.. 1 '.1 - •' - I - - rn..tests witnessed by AOGCC Jeff Jones. Preform Koomey unit , draw down, Drill from 376' MD to 462' MD. 1/8/2010 00:00 - 1/9/2010 00:00 Operations Summary Finish Cleaning out conductor to 480' MD, Circulate B/U at 480' MD Change out BHA, TIH Drill 17 -1/2" hole from 480' MD to 1.293' MD. Mud weight 9.1 ppg. 1/9/2010 00:00 - 1/10/2010 00:00 Operations Summary Drill from 1,293' MD to 1,442' MD (1,365 TVD), Circulate B /U, Pump OOH, UD BHA, Run wash tool to 483' MD, Wash conductor for Davis Lynch 13 3/8" packer, POOH, Pull wear bushing, R/U and Run 13 3/8" casing. MW 9.15 1/10/2010 00:00.1/11/2010 00:00 Operations Summary Run 13 3/8" casing to 1,412' MD pick up Vetco 13 3/8" casing hanger, land 13 3/8" 68# L -80 casing @ 1,402' MD and Davis Lynch stage packer at 411' MD, Perform two stage rpent ob one cement casing with 152bb1 13.2ppg lead, 136bb1 13.6- 14.0ppg tail class G cement, bumped plug. Drop plug and set Davis Lynch External Casing packer and open DV collar. Pump stage two: 260bb1 13.2ppg class G cement, bumped plug, closed stage collar. Had returns throughout cementing operations. Nipple down Diverter and lines. Notice given to AOGCC of upcoming BOP test. 1/11/2010 00:00 - 1/12/2010 00:00 Operations Summary Nipple up BOP's and well head, Rig up to pressure test BOP's. Performed rig maintenance. 1/12/2010 00:00 - 1/13/2010 00:00 Operations Summary Test BOP 250osi low/ Opsi high, annular 250psi low /1000psi high, witness waived by AOGCC Lou Grimaldi. Installed wear bushing, RIH w/ 12 1/4" — BHA, drill out cemenugs from 411' to 420'MD, pressure test casing 1500psi for 30 min, good. Drill out cement, float equipment, and rat hole from 1,301' to 1,442', drill of of new formation to 1,462' MD and perform FIT with 9.2ooa mud weight to 13.1ppq EMW. 1/13/2010 00:00 - 11 4/2010 00:00 Operations Summary P0011, Lay Down 12 1/4" BHA, Pick up 9 1/4" BHA, Service Rig, TIH, Swap Spud Mud To KCL mud system, Drilling with rotary steerable from 1,462' to 2,595' MD. MW 9.1 • 1/14/2010 00:00 - 1/16/2010 00:00 Operations Summary Drill from 2,595' MD to 4,581' MD (3,955' TVD), Pump sweeps, Ciruclate B /U, Short Trip to Shoe at 1,402'MD, Service rig.MW 9.15ppg 1/15/2010 00:00.1/16/2010 00:00 Operations Summary Continue to service rig, TIH to 4,581' MD, Drill to 5,503' MD MW 9.2 ppg 1116/2010 00:00 - 1117/2010 00:00 Operations Summary Drill from 5,503' to 5,740' MD, Circulate bottom up, P0011 for Bit Change, TIH with new 9 1/4" Bit. MW 9.15 ppg 1/17/2010 00:00 - 1/18/2010 00:00 Operations Summary Clear blockage in flow line to pits, TIH, Drill from 5,740' MD to 6,799' MD, Circulate to POOH, 9.1 ppg 1/18/2010 00:00 - 1/19/2010 00:00 Operations Summary Drill from 6,799' to section TD @ 6,940' MD (5,105' TVD), MW 9.1 ppg Circulate bottom up @ 6,940 MD, Flow Check OK, Pull 10 Stand Pump Slug, Continue to POOH, Lad down BHA, Pick up 3 1/2" stinger and TIH to 6,820' MD, Circulate prior to plug back operation. Chevron • • Chevron - Alaska 1 %. Daily Operations Summary Well Name Legal Well Name Lease Surface UWI ChevNo Original RKB (ft) Water Depth (ft) M -10 TRADING BAY UNIT M -10 5073320588 LX8255 160.00 185.00 Dallv OPeratlon 1119/2010 00:00 - 1/20/2010 00:00 Operations Summary TIH with 800' 3 1/2" stinger. Pump_1 of 4 cement plugs from TD up to 6,929'MD (53 bbls 13.7 ppg class G) Pump 2 of 4 cement plug from 6,929 up to 5,630'MD (62 bbls 13.7 class G cement), pump 3 of 4 cement plug from 5,630'MD up to 4,900'MD, (55 bbls 13.7ppg class G cement) pump 4 of 4 cement plug from 5,630'MD up to 42,00'MD (64 bbls, 17.0 ppg class G cement. Circulate hole clean. MW 9.2 ppg. 1/20/2010 00:00 - 1/21/2010 00:00 Operations Summary POOH, UD 3 1/2" cement stinger, P/U Drilling BHA #8, TIH, wash past expected KOP to 4,600'MD. MW: 9.4ppg 1/21/2010 00:00 - 1/22/2010 00:00 • Operations Summary Ream through cement strings, confirmed TOC @ 4,660'MD, POOH P/U 3 1/2" cement stinger, TIH and pump 69.3 bbls 17 ppg class G cement f/ 4,660'MD up to 4,060'MD. MW: 9.4ppg AOGCC Jim Regg waived witness of upcoming BOP test @ 10:10 hrs 1/22/2010 00:00 - 1 /23/2010 00:00 Operations Summary Circulate hole clean „POOH, UD tubing string, Test BOP's 250/1000/30QQpsi MW: 9.4 1/23/2010 00:00 - 1/24/2010 00:00 Operations Summary Rig Repair, M/U Drilling Assembly, TIH, TOC 4,030'MD. Sidetrack off plug @ 4,093'MD, Directionally Drilled to 4,438'MD.POOH for mud motor and new bit. MW: 9.3ppg 1/24/2010 00:00 - 1/25/2010 00:00 Operations Summary P/U drilling assembly, TIH, Drill F/ 4,438' to 4,923'MD. MW: 9.5 ppg 1/25/2010 00:00 - 1/26/2010 00:00 Operations Summary Drill ahead F/4,923'MD to 5,098'MD, POOH change bit and motor, TIH MW: 9.3ppg 1/26/2010 00:00 - 1/27/2010 00:00 Operations Summary TIH, Drill ahead F /5,105'MD to 5,684'MD, POOH for BHA. MW: 9.3 1/27/2010 00:00 - 1/28/2010 00:00 Operations Summary POOH, UD BHA, N/U BHA, TIH, Drill F/5,684' to 5,752'MD. MW:9.25ppg 1/28/2010 00:00 - 1/29/2010 00:00 Operations Summary Drill F/ 5,752'MD to 5,800'MD, POOH UD BHA Set 9 5/8” spacer sleeve, test 250 /5000psi for 10 min each. R/U 7" casing ea '. u - r LA • • • • • 1/29/2010 00:00 - 1/30/2010 00:00 Operations Summary RIH w/ 7" 26# casing to 5,789'MD. Pump 1st stage, 53 bbls 14 ppg class G cement. Lost returns after 145 bbls pumped. Open Stage tool, pump second stage 276 bbls, 13.2ppc_class G cement with trace returns to surface. AOGCC Lou Grimaldi waived witness of upcoming BOP test @ 17:00 hrs 1/30/2010 00:00 - 1/31/2010 00:00 Operations Summary R/D landing jt, Install 7" packoff test 250/5000 psi for 30 min each., Rig maintinance, test BOP's 250/1000/3000psi, Install wear ring, MW: 9.5 ppg. 1/31/2010 00:00 - 2/1/2010 00:00 Operations Summary Rig Repair, P/U 3 1/2" DP, P/U BHA. MW: 9.60ppg 2/1/2010 00:00 - 2/2/2010 00:00 Operations Summary RIH, Drill DV collar @ 4833'MD, test Casing to 3000 psi for 10 min., RIH to 5240'MD, Tag cement, Drill cmt to top of float collar, change well over to FIW, POOH. MW: 9.5 - 8.8ppg 2/2/2010 00:00 - 2/3/2010 00:00 Operations Summary POOH, P/U 7" scraper assembly, RIH to 5,701 "MD, POOH, P /l1 and run IISIT nn wireline to 5 5O'MD P/U drilling assembly 2/3/2010 00:00 - 2/4/2010 00:00 Operations Summary RIH w/ Drilling BHA, Displace well to 8.8 ppg Drill -N fluid, Drill shoe track, Drill 20'MD of new hole, perform FIT to 11.5 EMW, Drill F/5,820'- 5,828'MD, POOH for bit, TIH w/ new bit. 2/4/2010 00:00 - 2/812010 00:00 Operations Summary gill R -1 /R" Production Section from 5,830' to 6,793' MD, Circulate and Condition mud, POOH to 7" casing shoe to pick up 500' 3.5" drill pipe. MW 8.8 2/5/2010 00:00.216/2010 00:00 Operations Summary Finish service TDS, TIH with 18 joints of 3 -1/2" drill pipe, continue trip to 6,702' MD, wash from 6,702' to 6,793'MD, no fill. Drill from 6,793' to section TD . at 7,520' MD, Circulate 4 bottoms up. MW 8.8 Chevron • • 110 Chevron - Alaska Daily Operations Summary Well Name Legal Well Name Lease Surface UWI ChevNo Original RKB (ft) Water Depth (ft) M -10 TRADING BAY UNIT M -10 5073320588 LX8255 160.00 185.00 Daily Op o 2/6/2010 00:00 - 2/7/2010 00:00 Operations Summary Short trip to 7" casing shoe at 5,789' MD, Service TDS and Rig floor Equipment, Monitor well with trip tank, loss rate 2.4 BPH, TIH to 7,466' No excess drag observed, Wash to bottom 7,520' MD, Circulate and build 100 bbls N -Vis pill, Spot N -vis Pill and POOH to 5,743' MD, Clean up surface equipment, Drop ball and open CCV with 2,750 psi, displace mud in 7" casing from 5,600' MD, displaced water base mud, clean surface pits and lines, and circulate and filter 6% KCL Brine. MW 8.8 2/7/2010 00:00 - 2/8/2010 00:00 Operations Summary Continue cleaning surface equipment and pits, build 350 BBLS 6% KCL Brine, Circulate and filter KCL. MW 8.8 2/8/2010 00:00 - 2/9/2010 00:00 Operations Summary Continue circulating and filtering 6% KCL, POOH, UD BHA, Riq up and run 4" screen assembly. MW 8.8 2/9/2010 00:00.2/10/2010 00:00 Operations Summary Pick up inner string, and make up Gravel pack packer, TIH with screen assembly, Screen assembly stuck at 6,605' MD, attempt to free screen assembly, no success. set packer at 4,777' MD, pump stimulation fluid, POOH, to 4,700' MD, Circulate and filter 6% KCL Brine fluid, POOH with 3 1/2" drill pipe, lay down inner string. MW 8.8 2/10/2010 00:00 - 2/11/2010 00:00 Operations Summary Continue lay down 2 7/8" inner string, Rig up and Run 3 1/2" Production Tubing with 3 GLM and TRSSV, make up control line, space out and land tubing hanger. Test seals and tubing hanger, rack back landing string, nipple down BOP stack. MW 8.8 2/11/2010 00:00 - 2/12/2010 00:00 Operations Summary Continue nipple down riser, nipple up and test Vetco production tree (250 / 5000) connect flow line to tree, change out saver sub, lay down excess 5" • HWDP, 4" HWDP and 5" drill pipe, connect line for stand pipe manifold to tree to open FLCV at 4799' MD 2/12/2010 00:00 - 2/13/2010 00:00 Operations Summary R/U slickline to M -10 tree, test lubricator to 250/2500 psi (good test) RIH and latched GLM #2 @ 3458' & POOH w/ same. Fluid level noted @ 1340' WLM on run #1, 2330' WLM on run #2 and 3458/ WLM on run #3. gas Begin lift oeerations injecting 1.8 MMCFD flowing 3.0 MMCFD with 40 psi on g g tubing, 48 bbls of fluid recoverd. Shut down gas lift well flowing at 4.0 MMCFD with 80 psi FTP. total brine recovere ad t 03:00 61 bbls. Bled annulus pressure to flare while flowing well. Shut in well tubing built from 80 psi to 415 psi in 15 minutes.then_staltlizedLopened_welto prn 1uciinn wallowing a+ 3.8 MMCFD with 195 psi FTP. Chevron * Selhead Platform %10 Well M -10 %. As Built 3 -8 -10 RKB to TBG Head = 78' Casing &Tubing Detail SIZE WT GRADE CONN MIN ID TOP BTM BTM (MD) (TVD) -I . MI sssv 32" X -56 Welded 30" Surface 490' 490' "'..■ 32° Conductor 13 -3/8" 68 L -80 BTC 12.415 Surface 1402' 1376' 4111 , , s al ECP Stage 7' 26 L -80 H -563 6.276 Surface 5789' 4536" Collar @ 411 3 2 9.2 L -80 TC -II 2.992 Surface 4783' 4110' w 1 Est TOC @ 300' Logging Detail MI Hole LWD /MWD Wire Line Mud Logging Notes Section gg 9 i IIIIE , 13 3 /8" in 1714" Hole 17'/2 gMWD, GR/RES Gas On Site Geologist ® 9 1/4 Triple Combo/ USIT F /400'- Mudlog On Site Geologist PWD 5350' - " SC-1 Payer @ Triple Combo - 4783' MD 6 1/8" PWD Mudlog On Site Geologist Completion Equipment Information I. AI I ® Stage Collar @ 4833' MD Item Depth MD Depth TVD OD ID MI I r 3'/2" WellStar TRSV 12.6 TCII 447' 447' 5.200" 2.813" NMI I s Swell Packer @ 3 �/2" SFO -1 Mandrel 1739' 1559 5.313" 2.867" 4902' MD ` 3'/2" SFO -1 Mandrel 3455' 2019 5.313" 2.867" MS all 3'/2' SFO -1 Mandrel 4726' 2379 5.313" 2.867" 'Al ' 7" SC -1 Production Packer 4783' 4110' 6.000" 4.000" min Seal Bore Extension 4789' 2467' 5.010" 3.990" , C Retrieving Extension 4793' 2470' 5.520" 4.710" Fluid Loss Control Valve 4800' 2474' 5.810" 3.110" 4.5,12.6 lb /ft TC -II Blank Pipe 4809' 2479' 4.530" 3.958" Weatherford swell packer 4902' 2533' 5.75" 4.000 7" Casing in 91/4" Hole 4.5,12.6 lb /ft TC -II Blank Pipe 4922' 2544' 4.530" 3.958" 6 1 /8° Open Hole 4.52" BakerWeld 12 Ga Screen 5300' 2765' 4.520" 3.540" a 4.5,12.6 lb /ft TC -II Blank Pipe 5713' 3008' 4.530" 3.958" 4.52" BakerWeld 12 Ga Screen 5747' 3027' 4.520" 3.540" mi , 4.5° wire wrap screen NEB I 4.5,12.6 lb /ft TC -II Blank Pipe 5786' 4536' 4.530" 3.958" MI I NM I 4.52" BakerWeld 12 Ga Screen 6042' 4561' 4.520" 3.540" w I Pack Off Sub for Slick Stinger 6605' 4562' 4.510" 2.000" GP Wash Down Shoe 6609' 4562' 4.490" NA 4.5" wire wrap screen TD @ 6611' MD Cementing Information Description Volume Density Yield (ft3 /sx) Notes (bbls) (ppg) Surface 1st stg 152/136 13.2/14.0 1.83/1.61 Tail 13.6 -14.0 ppg Surface 2 stg 260 13.2 1.83 Plug Bumped TD 7520' MD 1600 psi Production 1 stg 53 14.0 1.61 Lost returns Production 2 stg 276 13.2 1.83 Trace cement to surface MAX HOLE ANGLE = 91.89° @ 7042' MD Well Detail UPDATED BY DR 03/08/10 • • M -10 Mud Weight vs. Depth (MD & TVD) 0 1000 2000 - 3000 Weight Vs. MD 4000 —II—Mud Weight Vs. ND H 5000 - - -- 6000 • • 7000 8000 8.6 8.7 8.8 8.9 9 9.1 9.2 9.3 9.4 9.5 9.6 9.7 Chevron ft/ 1 1%.1 M -10 Survey Report Schiumberger Report Date: February 8, 2010 Survey I DLS Computation Method: Minimum Curvature / Lubinski Client: Chevron Vertical Section Azimuth: 10.000° Field: Trading Bay Unit Vertical Section Origin: N 0.000 ft, E 0.000 ft Structure l Slot: Steelhead / leg Al slot 7 TVD Reference Datum: Rotary Table Well: M -10 TVD Reference Elevation: 160.0 ft relative to Mean Sea Level - Borehole: M-10 Sea Bed 1 Ground Level Elevation: - 185.000 ft relative to Mean Sea Level UWUAPI#: 507332058810 Magnetic Declination: 18.360° Survey Name I Date: M-10 / January 25, 2010 Total Field Strength: 55541.668 nT Tort 1 AHD 1 DDI I ERD ratio: 218.290° 14695.99 ft / 6.227 / 1.028 Magnetic Dip: 73.639° Grid Coordinate System: NAD27 Alaska State Planes, Zone 04, US Feet Declination Date: January 25, 2010 Location Let/Long: N 60.83178787, W 151.60239696 Magnetic Declination Model: BGGM 2009 Location Grid NIE YIX: N 2499450.290 ftUS, E 214080.250 ftUS North Reference: True North III Grid Convergence Angle: - 1.39928826° Total Corr Mag North -> True North: +18.360° Grid Scale Factor: 0.99999302 Local Coordinates Referenced To: Well Head Measured Azimuth Vertical Along Hole NS EW Comments Depth Inclination True Sub -Sea TVD TVD Section Departure Closure True North True North DLS Northing Easting Latitude Longitude (ft ) (deg) (deg) (ft) (ft) (ft) (ft ) (ft ) (ft) (ft ) (deg/100ft ) (ftUS) (ftUS) RTE 0.00 0.00 0.00 - 160.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 2499450.29 - 214080.25. N 60.83178787 W 151.60239696 Gyro -MWD 416.66 0.29 167.41 256.66 416.66 -0.97 1.05 1.05 -1.03 0.23 0.07 2499449.26 214080.45 N 60.83178506 W 151.60239568 451.71 0.35 214.07 291.71 451.71 -1.15 1.24 1.22 -1.20 0.19 0.74 2499449.08 214080.41 N 60.83178458 W 151.60239590 469.30 0.50 182.89 309.30 469.30 -1.28 1.37 1.33 -1.33 0.16 1.54 2499448.96 214080.37 N 60.83178425 W 151.60239610 30" Conductor 480.00 0.64 182.35 320.00 480.00 -1.38 1.47 1.44 -1.43 0.15 1.33 2499448.85 214080.37 N 60.83178396 W 151.60239612 485.89 0.72 182.15 325.89 485.89 -1.45 1.54 1.51 -1.50 0.15 1.33 2499448.78 214080.36 N 60.83178376 W 151.60239614 504.92 0.88 166.90 344.91 504.91 -1.71 1.81 1.77 -1.76 0.18 1.39 2499448.52 214080.38 N 60.83178305 W 151.60239598 519.90 1.05 181.80 359.89 519.89 -1.95 2.06 2.02 -2.01 0.20 2.01 2499448.27 214080.40 N 60.83178237 W 151.60239586 554.73 1.64 163.19 394.71 554.71 -2.71 2.87 2.83 -2.81 0.33 2.09 2499447.47 214080.51 N 60.83178019 W 151.60239510 587.08 2.27 157.51 427.04 587.04 -3.66 3.97 3.91 -3.84 0.71 2.04 2499446.43 214080.87 N 60.83177736 W 151.60239298 617.93 2.89 154.35 457.86 617.86 -4.81 5.36 5.27 -5.11 1.28 2.06 2499445.15 214081.41 N 60.83177390 W 151.60238978 648.67 3.45 157.77 488.56 648.56 -6.22 7.06 6.95 -6.66 1.97 1.92 2499443.58 214082.05 N 60.83176964 W 151.6023859 684.29 4.17 161.83 524.10 684.10 -8.27 9.43 9.31 -8.89 2.78 2.16 2499441.34 214082.81 N 60.83176356 W 151.60238 746.47 5.63 171.67 586.05 746.05 -13.16 14.72 14.59 -14.05 3.92 2.70 2499436.15 214083.83 N 60.83174943 W 151.60237 799.67 6.92 173.93 638.93 798.93 -18.72 20.54 20.36 -19.82 4.64 2.47 2499430.36 214084.40 N 60.83173365 W 151.60237096 893.58 9.39 176.07 731.88 891.88 -31.59 33.86 33.59 -33.09 5.76 2.65 2499417.07 214085.20 N 60.83169735 W 151.60236467 988.82 11.97 172.12 825.47 985.47 -48.53 51.50 51.21 -50.63 7.65 2.81 2499399.49 214086.66 N 60.83164938 W 151.60235410 1086.18 15.37 167.65 920.06 1080.06 -70.08 74.49 74.19 -73.24 11.80 3.65 2499376.78 214090.25 N 60.83158753 W 151.60233087 1181.67 18.75 169.03 1011.33 1171.33 -96.12 102.50 102.18 - 100.68 17.42 3.56 2499349.22 214095.21 N 60.83151248 W 151.60229933 1274.42 21.21 168.40 1098.49 1258.49 - 125.65 134.19 133.86 - 131.75 23.64 2.66 2499318.00 214100.66 N 60.83142748 W 151.60226453 1369.70 24.15 167.76 1186.40 1346.40 - 159.72 170.93 170.58 - 167.69 31.24 3.10 2499281.89 214107.38 N 60.83132917 W 151.60222194 13 -3/8" Csg 1403.00 25.15 167.20 1216.66 1376.66 - 172.55 184.81 184.46 - 181.25 34.25 3.09 2499268.26 214110.06 N 60.83129208 W 151.60220507 1486.93 27.69 165.97 1291.82 1451.82 - 206.81 222.16 221.77 - 217.57 42.93 3.09 2499231.74 214117.85 N 60.83119273 W 151.60215643 1582.12 32.44 165.78 1374.18 1534.18 - 250.32 269.83 269.39 - 263.80 54.57 4.99 2499185.24 214128.36 N 60.83106627 W 151.60209121 1676.74 36.30 168.00 1452.27 1612.27 - 299.45 323.23 322.77 - 315.82 66.63 4.29 2499132.94 214139.15 N 60.83092398 W 151.60202363 1772.04 40.19 169.64 1527.10 1687.10 - 354.46 382.21 381.75 - 373.69 78.03 4.22 2499074.81 214149.13 N 60.83076570 W 151.60195976 SurveyEditor Ver SP 2.1 Bid( users) leg Al slot 7\M- 10 \M- 10 \M -10 Generated 3/9/2010 9:19 AM Page 1 of 3 • Measured Azimuth Vertical Along Hole NS EW Comments Depth Inclination True Sub-Sea TVD ND Section Departure Closure True North True North DLS Northing Easting Latitude Longitude (ft) (deg) (deg) (ft ) (ft ) (ft) (ft) (ft) (ft) (ft ) (deg1100ft ) (ftUS) (ftUS) 1865.73 43.93 170.02 1596.65 1756.65 - 413.37 444.97 444.48 - 435.45 89.10 4.00 2499012.79 214158.69 N 60.83059674 W 151.60189771 1960.35 47.36 168.61 1662.79 1822.79 - 476.64 512.61 512.11 - 501.92 101.67 3.78 2498946.04 214169.63 N 60.83041493 W 151.60182731 2056.24 47.93 166.81 1727.39 1887.39 - 542.20 583.47 582.96 - 571.15 116.75 1.51 2498876.47 214183.02 N 60.83022556 W 151.60174278 2151.78 47.27 166.90 1791.82 1951.82 - 607.07 654.02 653.49 - 639.85 132.80 0.69 2498807.39 214197.38 N 60.83003763 W 151.60165288 2246.17 46.80 164.91 1856.15 2016.15 - 670.12 723.09 722.50 - 706.84 149.61 1.62 2498740.02 214212.56 N 60.82985440 W 151.60155867 2340.75 46.86 164.16 1920.86 2080.86 - 732.40 792.07 791.36 - 773.32 168.01 0.58 2498673.11 214229.32 N 60.82967255 W 151.60145562 2434.37 46.65 165.55 1985.00 2145.00 - 794.13 860.26 859.47 - 839.14 185.82 1.10 2498606.87 214245.53 N 60.82949249 W 151.60135579 2530.68 46.59 166.99 2051.15 2211.15 - 858.20 930.26 929.45 - 907.14 202.44 1.09 2498538.49 214260.47 N 60.82930650 W 151.60126271 2625.61 46.68 169.40 2116.34 2276.34 - 922.27 999.27 998.45 - 974.68 216.55 1.85 2498470.62 214272.94 N 60.82912174 W 151.60118363 2720.25 46.87 169.74 2181.16 2341.16 - 986.89 1068.23 1067.37 - 1042.50 229.04 0.33 2498402.51 214283.76 N 60.82893622 W 151.60111369 2815.13 46.87 167.65 2246.03 2406.03 - 1051.40 1137.47 1136.59 - 1110.40 242.61 1.61 2498334.31 214295.67 N 60.82875050 W 151.60103765 2909.91 44.34 163.43 2312.34 2472.34 - 1113.03 1205.17 1204.24 - 1175.95 259.46 4.15 2498268.36 214310.91 N 60.82857118 W 151.600943 3005.37 40.92 159.23 2382.58 2542.58 - 1169.76 1269.80 1268.50 - 1237.19 280.07 4.66 2498206.64 214330.02 N 60.82840367 W 151.60082 3099.27 37.83 154.99 2455.17 2615.17 - 1219.79 1329.34 1327.15 - 1292.06 303.16 4.36 2498151.22 214351.77 N 60.82825357 W 151.60069 3194.04 34.55 150.62 2531.66 2691.66 - 1264.39 1385.28 1381.50 - 1341.84 328.64 4.40 2498100.84 214376.02 N 60.82811741 W 151.60055567 3288.77 32.15 145.80 2610.80 2770.80 - 1303.23 1437.33 1431.09 - 1386.11 356.00 3.77 2498055.91 214402.29 N 60.82799632 W 151.60040241 3383.49 28.25 139.33 2692.67 2852.67 - 1335.53 1484.93 1475.05 - 1423.98 384.79 5.36 2498017.35 214430.15 N 60.82789273 W 151.60024110 3478.24 24.59 132.80 2777.53 2937.53 - 1360.43 1527.04 1512.14 - 1454.40 413.88 4.93 2497986.23 214458.49 N 60.82780952 W 151.60007810 3573.16 21.07 124.23 2865.02 3025.02 - 1378.14 1563.81 1542.27 - 1477.43 442.50 5.09 2497962.51 214486.53 N 60.82774652 W 151.59991779 3667.96 17.59 115.43 2954.48 3114.48 - 1388.95 1595.13 1565.26 - 1493.17 469.54 4.78 2497946.11 214513.18 N 60.82770345 W 151.59976629 3762.71 17.86 106.18 3044.75 3204.75 - 1394.33 1623.92 1583.21 - 1503.37 496.43 2.98 2497935.26 214539.81 N 60.82767555 W 151.59961564 3857.53 19.28 97.96 3134.65 3294.65 - 1395.34 1654.07 1598.57 - 1509.59 525.90 3.14 2497928.32 214569.13 N 60.82765853 W 151.59945051 3952.38 20.49 91.71 3223.85 3383.85 - 1392.38 1686.30 1611.92 - 1512.26 558.01 2.58 2497924.87 214601.16 N 60.82765124 W 151.59927063 Tie -In Survey 4043.19 21.63 85.04 3308.61 3468.61 - 1385.77 1718.90 1622.58 - 1511.28 590.57 2.92 2497925.05 214633.74 N 60.82765389 W 151.59908817 4093.61 22.28 85.77 3355.37 3515.37 - 1381.02 1737.75 1628.11 - 1509.77 609.36 1.40 2497926.10 214652.56 N 60.82765802 W 151.59898289 4142.46 21.80 85.56 3400.65 3560.65 - 1376.48 1756.08 1633.76 - 1508.39 627.64 1.00 2497927.04 214670.87 N 60.82766180 W 151.59888048 4189.22 21.86 85.85 3444.06 3604.06 - 1372.19 1773.47 1639.30 - 1507.09 644.98 0.26 2497927.92 214688.23 N 60.82766536 W 151.59878334 4283.96 23.92 81.26 3531.34 3691.34 - 1361.71 1810.30 1650.22 - 1502.89 681.56 2.88 2497931.22 214724.90 N 60.82767683 W 151.59857838 4316.36 24.18 77.45 3560.93 3720.93 - 1357.05 1823.50 1653.40 - 1500.45 694.53 4.86 2497933.34 214737.93 N 60.82768351 W 151.59850571 4351.85 24.78 73.35 3593.23 3753.23 - 1350.93 1838.20 1656.07 - 1496.74 708.76 5.08 2497936.70 214752.24 N 60.82769365 W 151.59842 4378.78 25.39 70.23 3617.62 3777.62 - 1345.53 1849.62 1657.52 - 1493.17 719.60 5.41 2497940.01 214763.16 N 60.82770342 W 151.59836 4466.93 28.16 60.55 3696.35 3856.35 - 1322.91 1889.25 1658.61 - 1476.54 755.52 5.85 2497955.75 214799.48 N 60.82774890 W 151.598164 4561.20 34.58 49.83 3776.86 3936.86 - 1288.17 1938.19 1652.34 - 1448.30 795.40 9.00 2497983.02 214840.04 N 60.82782616 W 151.59794055 4656.10 38.00 42.10 3853.38 4013.38 - 1242.71 1994.30 1638.33 - 1409.22 835.60 6.01 2498021.10 214881.18 N 60.82793305 W 151.59771532 4746.74 41.52 34.35 3923.09 4083.09 - 1191.65 2052.21 1618.25 - 1363.67 871.29 6.70 2498065.76 214917.97 N 60.82805763 W 151.59751534 4846.67 46.36 27.34 3995.07 4155.07 - 1126.89 2121.48 1588.31 - 1304.13 906.63 6.86 2498124.42 214954.75 N 60.82822047 W 151.59731733 4940.78 50.46 22.49 4057.55 4217.55 - 1058.90 2191.84 1553.96 - 1240.31 936.17 5.81 2498187.50 214985.85 N 60.82839506 W 151.59715178 5028.13 53.89 16.52 4111.14 4271.14 - 990.90 2260.80 1516.98 - 1175.30 959.11 6.67 2498251.93 215010.36 N 60.82857286 W 151.59702324 5137.70 57.65 14.79 4172.77 4332.77 - 900.77 2351.37 1466.71 - 1088.08 983.52 3.67 2498338.52 215036.90 N 60.82881143 W 151.59688643 5231.85 63.94 15.24 4218.68 4378.68 - 818.94 2433.51 1423.80 - 1008.75 1004.81 6.69 2498417.31 215060.12 N 60.82902843 W 151.59676711 5327.22 70.37 14.10 4255.69 4415.69 - 731.39 2521.36 1381.36 - 923.77 1027.03 6.83 2498501.72 215084.41 N 60.82926089 W 151.59664253 5419.79 74.30 12.13 4283.78 4443.78 - 643.34 2609.54 1341.01 - 837.88 1047.03 4.70 2498587.10 215106.49 N 60.82949581 W 151.59653047 5515.35 75.01 12.59 4309.07 4469.07 - 551.27 2701.69 1302.79 - 747.87 1066.75 0.88 2498676.60 215128.41 N 60.82974204 W 151.59641990 5606.85 74.98 12.00 4332.76 4492.76 - 462.96 2790.07 1271.25 - 661.51 1085.57 0.62 2498762.47 215149.34 N 60.82997824 W 151.59631440 SurveyEditor Ver SP 2.1 Bld( users) leg Al slot 7 \M- 10 \M- 10 \M -10 Generated 3/9/2010 9:19 AM Page 2 of 3 Measured Azimuth Vertical Along Hole NS EW Comments Depth Inclination True Section TVD TVD Section Departure Closure True North True North DLS Northing Easting Latitude Longitude (ft ) (deg) (deg) (ft ) (ft ) (ft ) (ft ) (ft) (ft) (ft ) (deg1l00ft ) (ftUS) (ftUS) 5624.13 74.92 11.67 4337.24 4497.24 - 446.28 2806.76 1265.77 - 645.18 1089.00 1.88 2498778.71 215153.16 N 60.83002292 W 151.59629522 5681.48 74.86 11.08 4352.19 4512.19 - 390.93 2862.13 1248.59 - 590.90 1099.92 1.00 2498832.71 215165.40 N 60.83017139 W 151.59623400 5712.90 75.81 9.99 4360.15 4520.15 - 360.53 2892.53 1239.68 - 561.02 1105.47 4.52 2498862.45 215171.68 N 60.83025313 W 151.59620285 5737.83 77.28 9.25 4365.95 4525.95 - 336.29 2916.77 1232.69 - 537.11 1109.52 6.57 2498886.25 215176.32 N 60.83031851 W 151.59618014 7" Csg 5789.00 78.67 9.63 4376.61 4536.61 - 286.24 2966.82 1219.52 - 487.75 1117.73 2.81 2498935.40 215185.73 N 60.83045355 W 151.59613413 5803.36 79.06 9.73 4379.38 4539.38 - 272.16 2980.91 1216.21 - 473.86 1120.10 2.81 2498949.23 215188.43 N 60.83049154 W 151.59612085 5898.80 83.95 7.68 4393.48 4553.48 - 177.82 3075.27 1196.51 - 380.58 1134.37 5.55 2499042.12 215204.98 N 60.83074668 W 151.59604084 5994.64 88.22 6.77 4400.02 4560.02 -82.34 3170.86 1181.47 - 285.75 1146.39 4.55 2499136.63 215219.31 N 60.83100609 W 151.59597344 6088.56 89.35 4.29 4402.01 4562.01 11.26 3264.76 1171.33 - 192.30 1155.44 2.90 2499229.84 215230.64 N 60.83126171 W 151.59592269 6183.94 91.13 1.63 4401.61 4561.61 105.91 3360.14 1164.41 -97.06 1160.36 3.36 2499324.93 215237.89 N 60.83152223 W 151.59589504 6278.36 90.14 0.75 4400.56 4560.56 199.21 3454.55 1162.33 -2.66 1162.32 1.40 2499419.24 215242.15 N 60.83178043 W 151.59588400 6373.69 89.97 0.81 4400.47 4560.47 293.31 3549.88 1167.30 92.66 1163.62 0.19 2499514.50 215245.78 N 60.83204117 W 151.595876 6469.57 88.97 0.33 4401.36 4561.36 387.89 3645.75 1179.73 188.53 1164.57 1.16 2499610.32 215249.07 N 60.83230340 W 151.59587 6564.80 88.52 359.76 4403.45 4563.45 481.66 3740.96 1198.71 283.73 1164.65 0.76 2499705.49 215251.47 N 60.83256383 W 151.59587 6660.43 88.83 359.67 4405.66 4565.66 575.73 3836.57 1224.42 379.34 1164.17 0.34 2499801.08 215253.33 N 60.83282534 W 151.59587342 6754.96 90.45 0.01 4406.25 4566.25 668.77 3931.09 1256.67 473.86 1163.91 1.75 2499895.58 215255.37 N 60.83308390 W 151.59587485 6850.90 90.82 1.49 4405.19 4565.19 763.46 4027.02 1297.02 569.78 1165.16 1.59 2499991.45 215258.97 N 60.83334629 W 151.59586776 6946.21 90.72 1.32 4403.91 4563.91 857.69 4122.33 1343.64 665.06 1167.50 0.21 2500086.63 215263.63 N 60.83360690 W 151.59585461 7042.11 91.89 2.71 4401.72 4561.72 952.63 4218.20 1396.37 760.87 1170.87 1.89 2500182.33 215269.34 N 60.83386898 W 151.59583567 7137.44 91.78 2.67 4398.67 4558.67 1047.13 4313.48 1454.04 856.04 1175.34 0.12 2500277.37 215276.14 N 60.83412932 W 151.59581055 7232.97 91.17 3.69 4396.21 4556.21 1141.96 4408.98 1516.27 951.39 1180.64 1.24 2500372.56 215283.76 N 60.83439014 W 151.59578081 7328.37 90.65 3.56 4394.70 4554.70 1236.75 4504.37 1582.26 1046.59 1186.67 0.56 2500467.58 215292.12 N 60.83465053 W 151.59574696 7424.76 89.31 3.35 4394.73 4554.73 1332.51 4600.75 1651.67 1142.80 1192.48 1.41 2500563.62 215300.27 N 60.83491371 W 151.59571436 Last Survey 7484.09 89.49 2.99 4395.35 4555.35 1391.42 4660.08 1695.51 1202.04 1195.76 0.68 2500622.76 215305.00 N 60.83507574 W 151.59569594 TD (Projected) 7520.00 • 89.49 2.99 4395.67 4555.67. 1427.06 4695.99 1722.42 1237.90 1197.64 0.00 2500658.56 • 215307.75 • N 60.83517383 W 151.59568542 Survey Error Model: SLB ISCWSA version 24 * ** 3 -D 95.00% Confidence 2.7955 sigma Surveying Prog: MD From (ft) MD To ( ft) EOU Freq Survey Tool Type Borehole -> Survey 0.00 345.00 Act -Stns SLB_GYRO -MWD -Depth Only M -10PB1 -> M -10PB1 345.00 1369.70 Act -Stns SLB_GYRO -MWD M -10PB1 -> M -10PB1 1369.70 4043.19 Act -Stns SLB_MWD- STD" "1 M -10PB1 -> M -10PB1 4043.19 5737.83 Act -Stns SLB_MWD- STD^ "1 M -10 -> M -10 • 5737.83 7484.09 Act -Stns SLB_MWD- STD^ ^2 M -10 -> M -10 7484.09 7520.00 Act -Stns SLB_BLIND M -10 -> M -10 Legal Description: Northing (Y) IftUS] Eastinq (X) IUS] Surface : 4227 FSL 4816 FEL S33 T9N R13W SM ' 2499450.29 214080.25 BHL : 185 FSL 3617 FEL S28 T9N R13W SM 2500658.56 215307.75 *Italicized stations are NOT used in position calculations. SurveyEditor Ver SP 2.1 Bld( users) leg Al slot 7\M- 10 \M- 10 \M -10 Generated 3/9/2010 9:19 AM Page 3 of 3 Chevron %00 M - 10PB1 Survey Report Schiumberger 1 Report Date: 22- Jan -10 Survey I DLS Computation Method: Minimum Curvature / Lubinski Client: Chevron Vertical Section Azimuth: 10.000 Field: Trading Bay Unit Vertical Section Origin: N 0.000 ft, E 0.000 ft Structure 1 Slot: Steelhead / leg Al slot 7 TVD Reference Datum: Rotary Table Well: M -10 TVD Reference Elevation: 160.0 ft relative to Mean Sea Level Borehole: M -10PB1 Sea Bed 1 Ground Level Elevation: - 185.000 ft relative to Mean Sea Level UWIIAPI #: 507332058870 Magnetic Declination: 18.374 Survey Name I Date: M -10PB1 / January 8, 2010 Total Field Strength: 55540.691 nT Tort 1 AHD I DDI I ERD ratio: 227.380° / 3922.86 ft / 6.084 / 0.768 Magnetic Dip: 73.639 • Grid Coordinate System: NAD27 Alaska State Planes, Zone 04, US Feet Declination Date: January 08, 2010 Location LatlLong: N 60.83178787, W 151.60239696 Magnetic Declination Model: BGGM 2009 Location Grid NIE YIX: N 2499450.290 ftUS, E 214080.250 ftUS North Reference: True North Grid Convergence Angle: - 1.39928826° Total Corr Mag North •> True North: +18.374 Grid Scale Factor: 0.99999302 Local Coordinates Referenced To: Well Head Comments Measured Inclination Azimuth Sub -Sea TVD TVD Vertical Along Hole Closure NS EW DLS Northing Easting Latitude Longitude Depth True Section Departure True North True North (ft ) (deg) (deg) (ft) (ft) (ft ) (ft) (ft) (ft) (ft ) (deg /100 ft) (ftUS) (ftUS) RTE 0.00 0.00 0.00 - 160.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 2499450.29 214080.25 N 60.83178787 W 151.60239696 Gyro -MWD 416.66 0.29 167.41 256.66 416.66 -0.97 1.05 1.05 -1.03 0.23 0.07 2499449.26 214080.45 N 60.83178506 W 151.60239568 451.71 0.35 214.07 291.71 451.71 -1.15 1.24 1.22 -1.20 0.19 0.74 2499449.08 214080.41 N 60.83178458 W 151.60239590 469.30 0.50 182.89 309.30 469.30 -1.28 1.37 1.33 -1.33 0.16 1.54 2499448.96 214080.37 N 60.83178425 W 151.60239610 30" Conductor 480.00 0.64 182.35 320.00 480.00 -1.38 1.47 1.44 -1.43 0.15 1.33 2499448.85 214080.37 N 60.83178396 W 151.60239612 485.89 0.72 182.15 325.89 485.89 -1.45 1.54 1.51 -1.50 0.15 1.33 2499448.78 214080.36 N 60.83178376 W 151.60239614 504.92 0.88 166.90 344.91 504.91 -1.71 1.81 1.77 -1.76 0.18 1.39 2499448.52 214080.38 N 60.83178305 W 151.60239598 519.90 1.05 181.80 359.89 519.89 -1.95 2.06 2.02 -2.01 0.20 2.01 2499448.27 214080.40 N 60.83178237 W 151.60239586 554.73 1.64 163.19 394.71 554.71 -2.71 2.87 2.83 -2.81 0.33 2.09 2499447.47 214080.51 N 60.83178019 W 151.60239510 587.08 2.27 157.51 427.04 587.04 -3.66 3.97 3.91 -3.84 0.71 2.04 2499446.43 214080.87 N 60.83177736 W 151.60239298 • 617.93 2.89 154.35 457.86 617.86 -4.81 5.36 5.27 -5.11 1.28 2.06 2499445.15 214081.41 N 60.83177390 W 151.60238978 648.67 3.45 157.77 488.56 648.56 -6.22 7.06 6.95 -6.66 1.97 1.92 2499443.58 214082.05 N 60.83176964 W 151.60238594 684.29 4.17 161.83 524.10 684.10 -8.27 9.43 9.31 -8.89 2.78 2.16 2499441.34 214082.81 N 60.83176356 W 151.60238141 746.47 5.63 171.67 586.05 746.05 -13.16 14.72 14.59 -14.05 3.92 2.70 2499436.15 214083.83 N 60.83174943 W 151.60237498 799.67 6.92 173.93 638.93 798.93 -18.72 20.54 20.36 -19.82 4.64 2.47 2499430.36 214084.40 N 60.83173365 W 151.60237096 893.58 9.39 176.07 731.88 891.88 -31.59 33.86 33.59 -33.09 5.76 2.65 2499417.07 214085.20 N 60.83169735 W 151.60236467 988.82 11.97 172.12 825.47 985.47 -48.53 51.50 51.21 -50.63 7.65 2.81 2499399.49 214086.66 N 60.83164938 W 151.60235410 1086.18 15.37 167.65 920.06 1080.06 -70.08 74.49 74.19 -73.24 11.80 3.65 2499376.78 214090.25 N 60.83158753 W 151.60233087 1181.67 18.75 169.03 1011.33 1171.33 -96.12 102.50 102.18 - 100.68 17.42 3.56 2499349.22 214095.21 N 60.83151248 W 151.60229933 1274.42 21.21 168.40 1098.49 1258.49 - 125.65 134.19 133.86 - 131.75 23.64 2.66 2499318.00 214100.66 N 60.83142748 W 151.60226453 1369.70 24.15 167.76 1186.40 1346.40 - 159.72 170.93 170.58 - 167.69 31.24 3.10 2499281.89 214107.38 N 60.83132917 W 151.60222194 13 -3/8" Csg 1403.00 25.15 167.20 1216.66 1376.66 - 172.55 184.81 184.46 - 181.25 34.25 3.09 2499268.26 214110.06 N 60.83129208 W 151.60220507 1486.93 27.69 165.97 1291.82 1451.82 - 206.81 222.16 221.77 - 217.57 42.93 3.09 2499231.74 214117.85 N 60.83119273 W 151.60215643 SurveyEditor Ver SP 2.1 Bld( users) leg Al slot 7 \M- 10 \M- 10PB1 \M -10PB1 Generated 4/2/2010 1:57 PM Page 1 of 3 1582.12 32.44 165.78 1374.18 1534.18 - 250.32 269.83 269.39 - 263.80 54.57 4.99 2499185.24 214128.36 N 60.83106627 W 151.60209121 1676.74 36.30 168.00 1452.27 1612.27 - 299.45 323.23 322.77 - 315.82 66.63 4.29 2499132.94 214139.15 N 60.83092398 W 151.60202363 1772.04 40.19 169.64 1527.10 1687.10 - 354.46 382.21 381.75 - 373.69 78.03 4.22 2499074.81 214149.13 N 60.83076570 W 151.60195976 1865.73 43.93 170.02 1596.65 1756.65 - 413.37 444.97 444.48 - 435.45 89.10 4.00 2499012.79 214158.69 N 60.83059674 W 151.60189771 1960.35 47.36 168.61 1662.79 1822.79 - 476.64 512.61 512.11 - 501.92 101.67 3.78 2498946.04 214169.63 N 60.83041493 W 151.60182731 2056.24 47.93 166.81 1727.39 1887.39 - 542.20 583.47 582.96 - 571.15 116.75 1.51 2498876.47 214183.02 N 60.83022556 W 151.60174278 2151.78 47.27 166.90 1791.82 1951.82 - 607.07 654.02 653.49 - 639.85 132.80 0.69 2498807.39 214197.38 N 60.83003763 W 151.60165288 2246.17 46.80 164.91 1856.15 2016.15 - 670.12 723.09 722.50 - 706.84 149.61 1.62 2498740.02 214212.56 N 60.82985440 W 151.60155867 2340.75 46.86 164.16 1920.86 2080.86 - 732.40 792.07 791.36 - 773.32 168.01 0.58 2498673.11 214229.32 N 60.82967255 W 151.60145562 2434.37 46.65 165.55 1985.00 2145.00 - 794.13 860.26 859.47 - 839.14 185.82 1.10 2498606.87 214245.53 N 60.82949249 W 151.60135579 2530.68 46.59 166.99 2051.15 2211.15 - 858.20 930.26 929.45 - 907.14 202.44 1.09 2498538.49 214260.47 N 60.82930650 W 151.60126271 2625.61 46.68 169.40 2116.34 2276.34 - 922.27 999.27 998.45 - 974.68 216.55 1.85 2498470.62 214272.94 N 60.82912174 W 151.60118363 • 2720.25 46.87 169.74 2181.16 2341.16 - 986.89 1068.23 1067.37 - 1042.51 229.04 0.33 2498402.51 214283.76 N 60.82893622 W 151.60111369 2815.13 46.87 167.65 2246.03 2406.03 - 1051.40 1137.47 1136.59 - 1110.40 242.61 1.61 2498334.31 214295.67 N 60.82875050 W 151.60103765 2909.91 44.34 163.43 2312.34 2472.34 - 1113.03 1205.17 1204.24 - 1175.96 259.46 4.15 2498268.36 214310.91 N 60.82857118 W 151.60094325 3005.37 40.92 159.23 2382.58 2542.58 - 1169.76 1269.80 1268.50 - 1237.19 280.07 4.66 2498206.64 214330.02 N 60.82840367 W 151.60082778 3099.27 37.83 154.99 2455.17 2615.17 - 1219.79 1329.34 1327.15 - 1292.06 303.16 4.36 2498151.22 214351.77 N 60.82825357 W 151.60069843 3194.04 34.55 150.62 2531.66 2691.66 - 1264.39 1385.28 1381.50 - 1341.84 328.64 4.40 2498100.84 214376.02 N 60.82811741 W 151.60055567 3288.77 32.15 145.80 2610.80 2770.80 - 1303.23 1437.33 1431.09 - 1386.11 356.00 3.77 2498055.91 214402.29 N 60.82799632 W 151.60040241 3383.49 28.25 139.33 2692.67 2852.67 - 1335.53 1484.93 1475.05 - 1423.98 384.79 5.36 2498017.35 214430.15 N 60.82789273 W 151.60024110 3478.24 24.59 132.80 2777.53 2937.53 - 1360.43 1527.04 1512.14 - 1454.40 413.88 4.93 2497986.23 214458.49 N 60.82780952 W 151.60007810 3573.16 21.07 124.23 2865.02 3025.02 - 1378.14 1563.81 1542.27 - 1477.43 442.50 5.09 2497962.51 214486.53 N 60.82774652 W 151.59991779 3667.96 17.59 115.43 2954.48 3114.48 - 1388.95 1595.13 1565.26 - 1493.17 469.54 4.78 2497946.11 214513.18 N 60.82770345 W 151.59976629 3762.71 17.86 106.18 3044.75 3204.75 - 1394.33 1623.92 1583.21 - 1503.37 496.43 2.98 2497935.26 214539.81 N 60.82767555 W 151.59961564 3857.53 19.28 97.96 3134.65 3294.65 - 1395.34 1654.07 1598.57 - 1509.59 525.90 3.14 2497928.32 214569.13 N 60.82765853 W 151.59945051 3952.38 20.49 91.71 3223.85 3383.85 - 1392.38 1686.30 1611.92 - 1512.26 558.01 2.58 2497924.87 214601.16 N 60.82765124 W 151.59927063 4043.19 21.63 85.04 3308.61 3468.61 - 1385.77 1718.90 1622.58 - 1511.28 590.57 2.92 2497925.05 214633.74 N 60.82765389 W 151.59908817 4142.25 22.30 70.56 3400.54 3560.54 - 1371.81 1755.78 1628.76 - 1503.44 626.51 5.50 2497932.01 214669.86 N 60.82767533 W 151.59888681 4236.84 23.60 60.22 3487.68 3647.68 - 1350.86 1792.58 1627.81 - 1488.06 659.89 4.47 2497946.57 214703.60 N 60.82771741 W 151.59869983 4331.65 24.95 49.21 3574.15 3734.15 - 1323.21 1831.46 1620.51 - 1465.56 691.52 4.97 2497968.30 214735.76 N 60.82777896 W 151.59852261 • 4426.40 26.15 40.71 3659.66 3819.66 - 1289.76 1872.26 1607.11 - 1436.66 720.27 4.07 2497996.48 214765.22 N 60.82785799 W 151.59836147 4517.82 28.80 34.88 3740.78 3900.78 1252.45 1914.41 1589.29 1403.32 746.02 4.13 2498029.19 214791.77 N 60.82794920 W 151.59821724 4615.57 32.29 29.70 3824.97 3984.97 - 1206.49 1964.05 1565.18 - 1361.30 772.43 4.47 2498070.54 214819.20 N 60.82806412 W 151.59806923 4711.25 36.04 26.45 3904.13 4064.13 - 1155.41 2017.77 1537.05 - 1313.88 797.64 4.36 2498117.33 214845.56 N 60.82819383 W 151.59792797 4805.91 39.52 25.72 3978.93 4138.93 - 1099.70 2075.75 1506.54 - 1261.80 823.12 3.71 2498168.78 214872.31 N 60.82833629 W 151.59778518 4900.39 43.22 24.75 4049.82 4209.82 - 1039.45 2138.18 1474.73 - 1205.32 849.72 3.97 2498224.59 214900.28 N 60.82849078 W 151.59763613 4995.48 46.72 24.37 4117.09 4277.09 - 974.42 2205.37 1442.03 - 1144.20 877.64 3.69 2498285.01 214929.68 N 60.82865796 W 151.59747966 5090.78 49.97 24.04 4180.42 4340.42 - 905.40 2276.57 1409.66 - 1079.26 906.83 3.42 2498349.21 214960.44 N 60.82883558 W 151.59731611 5185.50 53.29 23.50 4239.21 4399.21 - 833.28 2350.82 1378.49 - 1011.31 936.75 3.53 2498416.42 214992.02 N 60.82902146 W 151.59714843 5280.29 56.77 23.80 4293.53 4453.53 - 757.81 2428.48 1349.36 - 940.17 967.91 3.68 2498486.78 215024.90 N 60.82921605 W 151.59697382 5375.22 59.40 23.60 4343.71 4503.71 - 679.53 2509.06 1323.33 - 866.39 1000.29 2.78 2498559.74 215059.08 N 60.82941785 W 151.59679234 5469.86 63.61 20.71 4388.86 4548.86 - 598.24 2592.21 1298.97 - 789.37 1031.61 5.19 2498635.97 215092.26 N 60.82962852 W 151.59661684 5564.63 67.63 18.60 4427.97 4587.97 - 513.16 2678.51 1275.26 - 708.09 1060.61 4.70 2498716.51 215123.24 N 60.82985084 W 151.59645430 SurveyEditor Ver SP 2.1 Bld( users) leg Al slot 7\M- 10 \M- 10PB1 \M -10PB1 Generated 4/2/2010 1:57 PM Page 2 of 3 • 5658.94 71.02 16.28 4461.27 4621.27 - 425.69 2766.73 1253.36 - 623.93 1087.03 4.27 2498800.01 215151.71 N 60.83008106 W 151.59630622 5755.98 74.36 15.04 4490.14 4650.14 - 333.51 2859.36 1233.91 - 534.73 1112.02 3.65 2498888.57 215178.87 N 60.83032503 W 151.59616613 5851.52 79.49 12.89 4511.75 4671.75 - 240.70 2952.39 1218.41 - 444.45 1134.46 5.80 2498978.27 215203.50 N 60.83057198 W 151.59604039 5945.04 82.21 11.06 4526.62 4686.62 - 148.44 3044.71 1206.74 - 354.14 1153.61 3.49 2499068.09 215224.85 N 60.83081900 W 151.59593304 6039.83 81.14 8.52 4540.35 4700.35 -54.66 3138.50 1198.48 - 261.73 1169.55 2.88 2499160.08 215243.05 N 60.83107179 W 151.59584362 6134.49 78.80 8.22 4556.83 4716.83 38.51 3231.71 1195.21 - 169.51 1183.12 2.49 2499251.94 215258.87 N 60.83132403 W 151.59576754 6229.47 75.01 9.78 4578.35 4738.35 130.99 3324.20 1200.13 -78.16 1197.58 4.30 2499342.91 215275.56 N 60.83157391 W 151.59568647 6324.39 69.72 10.38 4607.10 4767.10 221.41 3414.63 1213.45 10.87 1213.40 5.61 2499431.53 215293.54 N 60.83181744 W 151.59559777 6419.01 65.70 10.98 4642.98 4802.98 308.94 3502.16 1233.43 96.89 1229.62 4.29 2499517.12 215311.86 N 60.83205272 W 151.59550686 6513.68 60.83 10.50 4685.55 4845.55 393.45 3586.69 1258.31 179.93 1245.38 5.16 2499599.75 215329.64 N 60.83227987 W 151.59541851 6608.41 56.09 10.95 4735.09 4895.09 474.16 3667.40 1286.77 259.23 1260.39 5.02 2499678.67 215346.58 N 60.83249679 W 151.59533434 6703.46 52.76 13.05 4790.39 4950.39 551.40 3744.69 1319.62 334.84 1276.43 3.94 2499753.86 215364.46 N 60.83270361 W 151.59524441 6798.16 49.10 14.98 4850.07 5010.07 624.73 3818.20 1356.44 406.17 1294.20 4.18 2499824.73 215383.97 N 60.83289870 W 151.59514479 O urvey 6880.80 46.92 15.38 4905.35 5065.35 685.90 3879.62 1390.49 465.44 1310.28 2.66 2499883.59 215401.49 N 60.83306084 W 151.59505465 TD (Projected) 6940.00 46.92 15.38 4945.78 5105.78 728.95 3922.86 1415.70 507.13 1321.75 0.00 2499924.99 215413.97 N 60.83317488 W 151.59499036 Survey Error Model: SLB ISCWSA version 24 * ** 2 -D 95.00% Confidence 2.4477 sigma Surveying Proq: MD From (ft) MD To ( ft 1 EOU Freq Survey Tool Type Borehole -> Survey 0.00 345.00 Act -Stns SLB_GYRO -MWD -Depth Only M -10PB1 -> M -10PB1 345.00 1369.70 Act -Stns SLB_GYRO -MWD M -10PB1 -> M -10PB1 1369.70 6880.80 Act -Stns SLB _MWD- STD^ ^1 M -10PB1 -> M -10PB1 6880.80 6940.00 Act -Stns SLB BLIND M -1OPB1 -> M -10PB1 Legal Description: Northing (Y) fftUSj Easting (X) must Surface : 4227 FSL 4816 FEL S33 T9N R13W SM 2499450.29 214080.25 BHL : 4734 FSL 3494 FEL S33 T9N R13W SM 2499924.99 215413.97 *Italicized stations are NOT used in position calculations. Final Definitive Survey Verify and Sign -off • I have checked to the best of my ability that the following data is correct: Surface Coordinates and Reference Elevations Declination Information Survey Tool Codes SLB DE: Client Representative: Date: SurveyEditor Ver SP 2.1 Bld( users) leg Al slot 7\M- 10 \M- 10PB1 \M -1 OPB1 Generated 4/2/2010 1:57 PM Page 3 of 3 .._ Vii �:.,, N r.1, �� � ' ��� � °�' � b r' C ` f SI s L fn SEAN PARNELL, GOVERNOR ALASKA OIL AND GAS 333 W. 7th AVENUE, SUITE 100 CONSERVATION COMMISSION ANCHORAGE, ALASKA 99501 -3539 PHONE (907) 279 -1433 FAX (907) 276 -7542 Mr. Timothy C. Brandenburg Drilling Manager Union Oil Company of California P.O. Box 19647 Anchorage, SK 99519 Re: McArthur River Field, Middle Kenai Gas Pool, Trading Bay Unit M -10 Union Oil Company of California Permit No: 209 -154 Surface Location: 1052' FNL, 464' FWL, SEC. 33, T9N, R13W, SM Bottomhole Location: 156' FSL, 1563' FWL, SEC. 28, T9N, R13W, SM Dear Mr. Brandenburg: Enclosed is the approved application for permit to drill the above referenced development well. The permit is approved subject to full compliance with 20 AAC 25.055. 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). Sincerel ,l r • 4 missi.ner DATED this day of February, 2010 cc: Department of Fish 86 Game, Habitat Section w/o encl. (via e -mail) Department of Environmental Conservation w/o end. (via e -mail) • • ' • \ ; it t I t t ;- ; = I t — \ t _ . SEAN PARNELL, GOVERNOR ALASKA OIL AND GAS 333 W. 7th AVENUE, SUITE 100 CONSERVATION RVAiIO COM IISSION I ANCHORAGE. ALASKA 99501 -3539 � PHONE (907) 279 -1433 FAX (907) 276 -7542 ADMINISTRATIVE APPROVAL: CO 228.07 Mr. Shannon Martin Union Oil Company of California P.O. Box 196427 Anchorage, AK 99519 -6247 Re: The request of Union Oil Company of California, operator of the Trading Bay Unit (TBU), for an Administrative Approval granting an exception to the well spacing requirements of Conservation Order 228 to drill and produce the TBU M -10 Middle Kenai Gas Pool well. Dear Mr. Martin: The Alaska Oil and Gas Conservation Commission (Commission) hereby approves Union Oil Company of California (UNOCAL)'s request for an exception to the well spacing requirements of Conservation Order 228 (CO 228) to drill and produce the TBU M -10 Middle Kenai Gas Pool well. The Commission received UNOCAL's request for Administrative Approval Pursuant to Rule 3 CO 228 for exception to the well spacing requirements of CO 228 on January 21, 2010. TBU M -10 will be a horizontal gas production well with a surface location 1,052 feet from the north line and 464 feet from the west line of Section 33, T9N, R13W, Seward Meridian (S.M.) and a projected bottom hole location of 156 feet from the south line and 1,563 feet from the west line of Section 28, T9N, R 13W, S.M. TBU M -10 will target the D -2 reservoir sand in the Tyonek Formation. The proposed TBU M -10 well and existing gas production well TBU M -03 will both be open to the D -2 reservoir sand within a 10 -acre block, in violation of the well spacing requirement established by Rule 1 of CO 228. An exception to Rule 1 is necessary to allow drilling and regular production of the TBU M -10 well from the D -2 reservoir sand. The productive interval of TBU M -10 open to the D -2 reservoir sand will be located entirely within Segment C of State of Alaska lease ADL 18730, established with the Alaska Department of Natural Resources on September 4, 2003. Segment C of State lease ADL 18730 is jointly owned by UNOCAL (48.8 %) and Marathon Alaska Production Company (51.2 %), and it lies within the boundaries of the TBU and the Grayling Gas Sands Participating Area (PA). UNOCAL is the operator for the TBU and the Grayling Gas Sands PA. • • CO 228.07 January 28, 2010 Page 2 of 2 Because of sand and water production problems, existing well TBU M -03 is not efficiently draining the gas reserves with the D -2 reservoir sand. The horizontal TBU M- 10 production well will more efficiently recover these reserves. A spacing exception to allow drilling and regular production from the TBU M -10 well will not result in waste or jeopardize the correlative rights of adjoining or nearby owners. Rule 3 of CO 228 allows the Commission to administratively amend the order as long as the operator demonstrates to the Commission's satisfaction that sound engineering practices are maintained and the amendment will not result in physical waste. The Alaska Oil and Gas Conservation Commission hereby authorizes the drilling and regular production of the TBU M -10 well pursuant to Rule 3 of CO 228. DONE at Anchorage, Alaska and dated January 28, 2010. tI r a t . 7 'i vw` 1�i ts Daniel T. Seamount, Jr. fr K. orman , - � ��� Chair Co -- ssioner 4� Jr) n„ '^" t <1�tM RECONSIDERATION AND APPEAL NOTICE As provided in AS 31.05.080(a). within 20 days after written notice of the entry of this order or decision, or such further time as the Commission grants for good cause shown, a person affected by it may file with the Commission an application for reconsideration of the matter determined by it If the notice was mailed, then the period of time shall be 23 days An application for reconsideration must set out the respect in which the order or decision is believed to be erroneous. The Commission shall grant or refuse the application for reconsideration in whole or in part within 10 days after it is tiled Failure to act on it within 10 -days is a denial of reconsideration. If the Commission denies reconsideration_ upon denial, this order or decision and the denial of re- consideration are FINAL and may be appealed to superior court_ The appeal MUST be filed within 33 days after the date on which the Corn- mission mails, OR 30 days if the Commission otherwise distributes, the order or decision denying reconsideration, UNLESS the denial is by in- action, in which case the appeal MUST be filed within 40 days after the dale on which the application for reconsideration was tiled, If the Commission grants an application for reconsideration, this order or decision does not become final. Rather, the order or decision on re- consideration will be the FINAL order or decision of the Commission, and it may be appealed to superior court. That appeal MUST be filed within 33 days after the date on which the Commission mails, OR 30 days if the Commission otherwise distributes, the order or decision on re- consideration, As provided in AS 31.05.080(b), "[tjhe questions reviewed on appeal are limited to the questions presented to the Commission by the application for reconsideration." In computing a period of time above, the date of the event or default after which the designated period begins to run is not included in the period: the last day of the period is included, unless it falls on a weekend or state holiday, in which event the penod runs until 5 p m. on the next day that does not fall on a weekend or state holiday. • Chevron Timothy C Brandenburg Union Oil Company of California Drilling Manager P.O. Box 196427 Anchorage, AK 99519 -6247 %I. Tel 907 263 7657 Fax 907 263 7884 Email brandenburgt @chevron.com RECEIVED 1/19/10 JAN 202010 Commissioner Alaska OA & Gas Cons. Commission Alaska Oil & Gas Conservation Commission Anchorage 333 W. 7 Avenue Anchorage, Alaska 99501 Re: Steelhead Platform, Trading Bay Unit M -10, APD 2091540 Dear Commissioner, Enclosed for review and approval is the re- application for the Permit to Drill the Trading Bay Unit M -10 well from the Steelhead Platform. The above referenced well was spud 1/7/10. A pilot hole was drilled through the primary objective horizon (D3B) and on to a TD of 6940 MD. Log analysis indicates that the D3 is non - productive. As was the alternative plan, Union Oil Company of California intends to drill a horizontal wellbore into the secondary objective (D2). The proposed bottom hole location io in the D2 is not more than 500' vertically or laterally from the original permitted location in the D3. Pursuant to 20 AAC 25.05 and Conservation Ord 28, a spacing exception is needed to produce this wellbore in the planned D2 location. The TBU wellbore is open to production (though not likely producing) from the D2 and is separated from ,th planned trajectory of M -10 by 357' at 6884' MD of / the planned M -10 D2 trajectory. Union Oil Company of California therefore requests administrative approval of the spacing exception pursuant to Rule 3 of Conservation Order 228. The rig is currently plugging and abandoning the pilot hole and plans to start sidetrack operations within 36 hrs. ' Your timely review and approval of this APD and spacing exception request will be appreciated. In accordance with 20 AAC 25.005 (c)(4)(A -C)... (A) MASP calculations are attached for review. (B) The Grayling Gas Sands are potentially gas bearing throughout the section. The D2 is expected to have a pore pressure of approximately -450 psi. (C) Due to ongoing production operations in this field, sub - normally pressured sands occur in multiple places. Lost circulation and differential sticking are potential problems. Conventional solutions such as LCM and good drilling practice are intended to ameliorate the problems. An exception to 20 AAC 25.035 (c)(1)(B) is requested. The diverter system at Steelhead includes two 16" diameter diverter lines. The surface hole 4 section of M -10 is planned to be drilled with a 17'/" bit. Union Oil Company of California / A Chevron Company Page 1. of 2 • An exception to 20 AAC 25.035 (e)(3) is requested. The BOP stack for Steelhead includes 20 %" 3M ram preventers and a 21 %a" 2M annular preventer. The MASP for the subject well, when calculated in the most pessimistic manner, exceeds the rated working pressure of the annular preventer. The annular preventer will not be used in a secondary well control event in excess of its rated working pressure. Union Oil Company also requests that the test pressure for the annular be established at 1000 psi. The annular preventer has been previously tested to 2000 psi. Repeated testing to 2000 psi will degrade the annular element. Pursuant to 20 AAC 25.005 (c)(14)... Qualified drilling waste will be discharged in accordance with NPDES permit AKG -31 -5000 which became effective 7/2/2007 and expires 7/2/2012. At this time, Union Oil Company does not intend to apply for annular disposal approval. 7 The remaining requirements of 20 AAC 25.005 are attached for review or currently on file with the Commission. If you have any questions, please don't hesitate to contact myself or Jim Rose at 907 - 263 -7637. Sincerely, Timothy C. Brandenburg Drilling Manager Attachments: Form 10 -401 in Duplicate M -10 Cementing Calculations M -10 Choke Manifold Schematic M -10 Casing Design M -10 Summary Drilling Procedure M -10 MASP Calculations M -10 Summary Mud Program M -10 FIT / LOT Procedure M -10 Planned Well Sketch M -10 Traveling Cylinder Plots M -10 Planned Well Trajectory M -10 Combo BOP /Diverter Schematic M -10 Drilling Hazards Notice Cc: File Union Oil Company of California / A Chevron Company Page 2 of 2 STATE OF ALASKA RECEIVED ALA• OIL AND GAS CONSERVATION COM•ION ,IAN 2 Q 2010 PERMIT TO DRILL 20 AAC 25.005 Masks Oil & Gas COOS. COIntdsslon la. Type of Work: lb. Current Well Class: Exploratory ❑ Development Oil ❑ lc. Specify if well is proposed forA nc h erann Drill El . Redrill ❑ Stratigraphic Test ❑ Service ❑ Development Gas • Q Coalbed Methane ❑ Gas Hydr tes ❑ Re -entry ❑ Multiple Zone ❑ Single Zone ❑ Shale Gas ❑ 2. Operator Name: 5. Bond: Blanket 0 Single Well ❑ 11. Well Name and Number: Union Oil Company of California Bond No. 0865103515406BCM • Tradng Bay Unit M -10 . 3. Address: 6. Proposed Depth: 12. Field /Pool(s): PO Box 196247, Anchorage, AK 99519 MD: 7126 • ND: 4550 McArthur River Field 4a. Location of Well (Governmental Section): 0 7. Property Designation: Middle Kenai Gas Pool ' Surface: 1052 FNL, 464' FWL, Sec 33, T9N, R13W, ADL 18730 • Top of Productive Horizon: $i / j) 8. Land Use Permit: 13. Approximate Spud Date: 1521' FNL, 1555' FWL, Sec 33, T9N, R13W, Oil Z NA 1/7/2010 ' Total Depth: p /J fc' � 9. Acres in Property: 14. Distance to Nearest 156' FNL, 1563' FWL, Sec 28, T9N, R13W, W 3840 Property: > 6000' 4b. Location of Well (State Base Plane Coordinates): 10. KB Elevation 15. Distance to Nearest Well Surface: x- 214080 • y- 2499450 • Zoi 4 (Height above GL): 160 AMSL feet • Within Pool: 357' (M -03) 16. Deviated wells: Kickoff depth: 525 feet 17. Maximum Anticipated Pressures in psig (see 20 25.035) Maximum Hole Angle: 90 degrees Downhole: 2011 Surface: 556 . 18. Casing Program: Specifications Top - Setting Depth - Bottom -- Cement Quantity, c.f. or sacks Hole Casing Weight Grade Coupling Length MD ND MD ND (including stage data) 9 1/4" 7 26 L -80 DWCSR 5681 Surf Surf 5759 4535 308 cf Stg 1, 1770 cf Stg 2 6 1/8" 4 9.5 1526 5600 4357 7126 4550 OH wire wrapped screen 19. PRESENT WELL CONDITION SUMMARY (To be completed for Redrill and Re -Entry Operations) Total Depth MD (ft): Total Depth ND (ft): Plugs (measured): Effect. Depth MD (ft): Effect. Depth ND (ft): Junk (measured): Casing Length Size Cement Volume MD TVD Conductor /Structural 402 28 -32 Driven 480 480 Surface 1402 13 3/8 548 bbls in 2 stages 1402 1376 / Intermediate Production Liner Perforation Depth MD (ft): NA Perforation Depth ND (ft): NA 20. Attachments: Filing Fee ❑ BOP Sketch El Drilling Program El Time v. Depth Plot ❑ Shallow Hazard Analysis ❑ Property Plat ❑ Diverter Sketch ❑ Seabed Report ❑ Drilling Fluid Program El 20 AAC 25.050 requirements 0 21. Verbal Approval: Commission Representative: Winton Aubert 1/19/10 ' Date 1/19/2010 22. I hereby certify that the foregoing is true and correct. Contact Jim Rose, 907 - 263 -7637 Printed Name Timothy Brandenburg Title Drilling Manager Signature / ��„. '. Phone Date I � 1c? z. y / Commission Use Only (. Permit to Drill ,.,_ ' / API Number: Permit Approv See cover letter for other Number: 1) � 50- 3' - L, - (.. '60 Date: /370 017 requirements. Conditions of approval : If box is checked, well may not be used to explore for, test, or produce coalbed ethane, gr hydrates, or gas contained in shales: Other: Samples req'd: YesilyNo DI Mud log req'd: Yes❑ No . j _ _ H measures: Yes No ❑ Directional svy req'd: Yes['✓ No❑ 1 € St Rh,"..tAlit.V �0 PE i . f tool" 1 :) ^. . TI- St ✓ B P t() 3'aoo ,,• e w Zo tkik-C Z S. 0 3 S t k 3 C I) a, ( t Q ✓t 4 . 64 - ' 1 '1- X o /25111r-1 -- MI APPROVED BY THE COMMISSION DATE: g".3.10 O/ , COMMISSIONER Form 10 -401 Revised 12/2005 O R I G I N A L Submit in Du licate Chevron • • INW Steelhead Platform Well M -10 %.1 Basic Drilling Procedure M -10 (D -2) Basic Drilling Procedure 1 „ .•, •, - - ++ • • • mi• - . - -- - • - ••- - ..• . Choose to drill horizontal in D -2 sand 13. POOH L/D RSS /Nuke tools 14. RIH to TD w/ 3 1/2" cement stinger 15. Pump cement balance plugs up from 6940'MD to 4250'MD 16. Trip in with 91/2"sidetrack assembly, kickoff cement plug at 4500'MD 17. Drill to TD and land in D -2 at 5759'MD. POOH [Dir. Ver. 20] 18. Pull wear bushing, set 9 5/8" spacer sleeve in wellhead, test 250/3000 for 10 minutes. 19. Run and cement 7" casing to surface in 2 stages. 20. Redress BOP's w/ 5" rams and test 250 /1000 /600fpsi. 21. Trip in hole with 6 1/8' bit, drill sta elool 22. Drill Float collar, Test Casing to P09 for 30 min. 23. Displace well to filtered inlet weer, POOH 24. Trip in hole with 7" casing scrapers and magnets with 6 1/8' bit, POOH 25. Run in hole on wire line and log with USIT -CCL V 26. MU 6 1/8" directional BHA (Rotary Steerable) and TIH 27. Change over mud from FIW to 9.0 ppg Bara Drill -N fluid, Drill out shoe track and 20' of new hole. Perform FIT to 11.5 ppg EMW. 28. Directionally drill to section TD (Geo- Steer) at 7126'MD. 29. Short trip to shoe, TIH, spot hi vis pill in OH. POOH. 30. TIH w/ screen assembly, set packer, perform filter cake removal, pull service string out of screen. POOH 31. Run 3 1 /2 tubing (GLM's, SSSV, CIS). Space out and land tubing. Test hanger void. 32. Install BPV and ND BOP. 33. NU tree and test tree to 5000 psi. 34. RDMO Steelhead rig. 1/20/2010 Page 1 of 1 BARDID FLUIfSERVICES • M -10 for CHEVRON - MID - CONTINENT EBIZ M -10 Cook Inlet Alaska United States of America Engineered Fluid Solutions Customized to Maximize Wellbore Value Submitted by: Megan Wesselman Halliburton Energy Services 6900 Arctic Blvd Anchorage, Alaska 99518 HALLIBURTON BAROID FLUID SERVICES • • CHEVRON - MID - CONTINENT Operator EBIZ v 1.3 Well Name M -10 Halliburton appreciates the opportunity to present this proposal and looks forward to being of service to you. Program Briefing Enclosed is our recommended procedure for Drilling Fluid Services in the referenced well. The information in this proposal includes well data, calculations, material requirements, and cost estimates. This proposal is based on information from our field personnel, customer information and previous services in the area. Halliburton appreciates the opportunity to present this proposal for your consideration and we look forward to being of service to you. Our Services for your well will be coordinated through the Service Center listed below. If you require any additional information or additional designs, please feel free to contact myself or our field representatives listed below. Prepared and Submitted by: Megan Wesselman Technical Advisor SERVICE CENTER: Anchorage AK ACCOUNT REPRESENTATIVE: Dave Higbie TECHNICAL PROFESSIONAL: Megan Wesselman PHONE NUMBER: 907.275.2612 HALLI B U RTO N United States of America Cook Inlet Baroid Fluid Services Kenai Offshore, Alaska 1 -19 -10 -- Page 2 of 25 BARDID FLUID SERVICES • O era CHEVRON - MID - CONTINENT p EBIZ v 1.3 Well Name M -10 Objective and Methods Steelhead Producer Introduction: The following mud program was prepared for a deviated well on the Steelhead platform in the Cook Inlet, Alaska. The well will be spudded with a pre- hydrated gel drilling fluid and the 17 -'/" interval will then be drilled to section TD at 1,401' MD where 13 -3/8" casing will be run and cemented. The 9 -1/4" pilot hole will be drilled to 6,900'. Cement plugs will be utilized to plug back the pilot hole to approximately 4500' MD, where an open hole sidetrack will kick off to drill the 9 "'A" interval to the 7" casing point at 5759' MD. The 7" casing will be run and cemented. The 6 -1/8" production horizontal will be drilled to TD at 7,126' MD. A 4 -' /" wire - wrapped screen, open hole completion will be ran. 6% KCI brine and corrosion inhibitor will be required for completion. Spud the well with a FW AQUAGEL mud at 9.0 ppg. The mud weight will then be held in the 9.0 to 9.3 ppg mud weight range to the surface hole TD unless hole conditions dictate otherwise. Our primary focus for surface hole drilling operations will be adequate mud weight for well control and sufficient mud viscosity for efficient hole cleaning. Before cementing the surface casing, ensure the mud weight is 9.5 ppg. LCM will be added to help strengthen the wellbore. A 2% KCI /CLAYSEAL /GEM mud will be maintained through the 9 -1/4" interval. This mud offers good LCM responses if losses are encountered. Special emphasis should be placed on maintaining low ECD's and surge /swab pressures to minimize the potential for lost circulation and disturbing the coal beds. This mud is formulated with three mechanisms to provide waste minimization and effective wellbore stabilization: glycol (GEM GP), ionic inhibition (KCI), and polymer encapsulation (Clayseal). Barotrol can be used to help stabilize the coal seams. The filtrate will be tightened in the lower section of the interval. Background LCM will be added to help seal and strengthen the wellbore. The production interval will utilize an 8.8 ppg 2% KCI BARADRILn system built from freshwater. Baracarbs 5/25/50 will be strung into the system while drilling to help prevent differential sticking and reduce formation damage. The mud weight will be maintained to TD. Primary Drilling Objectives: • Not exceeding the maximum allowable concentration of any product • Monitoring all discharges • Zero fluid related HSE incidents • Achieve wellbore stability • Achieve good hole cleaning considering hole angle, geometry and anticipated ROP rates • Lost circulation mitigation/control • Achieve good Zonal Isolation as per plan • Achieve minimal formation damage im a to r • . s Neams United States of America Cook Inlet Baroid Fluid Services Kenai Offshore, Alaska 1 -19 -10 -- Page 3 of 25 BAROID FLUID SERVICES S Operator • CHEVRON - MID - CONTINENT P EBIZ v 1.3 Well Name M -10 Critical Fluid Issues: • Eliminating /controlling losses in the under pressured zones. • Maintaining a low ECD in the production zone to reduce risk of lost returns. • Maintaining a stable wellbore through coal seams by reducing ECD's, surge, and swab. • Reducing drilling wastes with the inhibited drilling fluid system. • Follow new NPDES regulations Well Specifics: Casing Program MD Footage 17 -1/2" hole (13 -3/8" csg) 1401 931 9 -1/4" hole (7" csg to 5759') 5759 4358 6 -1/8" Hole (4 -1/2" Screens) 7126 1367 HALLI B U RTO N United States of America Cook Inlet Baroid Fluid Services Kenai Offshore, Alaska 1 -19 -10 -- Page 4 of 25 BAROID FLUID SERVICES. O er • CHEVRON - MID - CONTINENT p EBIZ v 1.3 Well Name M -10 Well Summary Well Data Estimated Days on Well 21 Maximum Density 9.50 ppg Total Measured Depth 7126 ft True Vertical Depth 4550 ft Maximum Deviation 89.6 DEG Max. Horz. Displacement Bottom Hole Temp Casing Design Description Top Top End End CSG ID CSG Bit Size Hole Hole MD (ft) TVD MD (ft) TVD (in) OD (in) (in) MD (ft) TVD (ft) (ft) (ft) Surface 0 0 1401 1371 12.415 13.375 17.500 1401 1371 Intermediate 0 0 5759 4535 6.276 7.000 9.250 5759 4535 Production 5759 4535 7126 4550 4.093 4.500 6.125 7126 4550 Fluid Program Int # Fluid Type Intery BHT Max al (degF) Density Days (ppg) 17 -1/2" Surface 7 9.50 Interval AQUAGEL Spud Mud 9 -1/4" 2% Intermediate KCl/CLAYSEAL /GEM 7 9.30 Interval GP 6 -1/8" Production Interval 2% KC1 BARADRILn 7 9.0 HALLIBURTON United States of America Cook Inlet Baroid Fluid Services Kenai Offshore, Alaska 1 -19 -10 -- Page 5 of 25 BARDID FLUID SERVICES • O era ill CHEVRON - MID - CONTINENT p EBIZ v 1.3 Well Name M -10 Fluid Properties M -10 AQUAGEL Spud Mud Name Min Max Name Min Max Density ppg 9 9.50 Yield Point lbf/100 25 35 Funnel Viscosity sec /qt 60 85 API Filtrate mL /30min 8.00 Plastic Viscosity cp 10 28 pH 8.50 9.50 2% KCl/CLAYSEAL /GEM GP Name Min Max Name Min Max Density ppg 9 9.30 Yield Point lbf/100_ft2 13 20 Funnel Viscosity sec /qt 40 53 API Filtrate mL /30min 6 Plastic Viscosity cp 6 15 pH 8.50 9.50 2% KC1 BARADRILn Name Min Max Name Min Max Density ppg 8.80 9 API Filtrate mL /30min 6.00 Funnel Viscosity sec /qt 40 60 MBT ppb eq. 3 Plastic Viscosity cp 11 18 pH 8.50 9.50 Yield Point lbf/100 ft2 18 25 HALLI B U RTO N United States of America Cook Inlet Baroid Fluid Services Kenai Offshore, Alaska 1 -19 -10 -- Page 6 of 25 BARDID FLUID SERVICES O era CHEVRON - MID - CONTINENT p EBIZ v 1.3 Well Name M -10 Interval Summary I 17 -1/2" Surface Interval Hole Size 17.50 in Interval Top MD/TVD 0 / 0 ft Interval Bottom MD /TVD 1401 / 1371 ft Footage 1401 ft Casing ID /OD 12.415 / 13.375 in Casing Length 1401 ft Washout % 15 % Pit Volume 800 bbl SCE 84 % Dilution Volume 1095.59 bbl % Solids Retained (LGS) 7 % Mud on Cuttings 0 % Start Mud Weight 9 ppg Maximum Deviation 23 DEG End Mud Weight 9.50 ppg Estimated BHT 0 degF Carry Over Volume 0 bbl Fluid Volume Required 2374.92 bbl Carry Over Weight 0 ppg Weight Up Material Required 82968.31 lbm SAP Material Product Conc. (ppb) Units 201423 SODA ASH 0.50 15 201060 AQUAGEL 15.00 444 201068 CAUSTIC SODA 0.10 3 201681 BARAZAN D PLUS 0 478095 BAROID 41 1904 201318 BA.PAC -L - 50 LB BAG 1.00 30 201126 DEXTRID LT 1.00 30 201583 BA.ALDACIDE G - 5 GAL CAN 0.10 3 201478 BA.X -TEND II - 2 LB BAG 0.02 15 1 HALLIBURTON United States of America Cook Inlet Baroid Fluid Services Kenai Offshore, Alaska 1 -19 -10 -- Page 7 of 25 BAROID FLUID SERVICES • O era CHEVRON - MID - CONTINENT P EBIZ v 1.3 Well Name M -10 Interval Discussion 17 -1/2" Surface Interval Surface Hole Recommendations - (17 -1/2" hole, 13 -3/8" casing to 1401') Properties: Densit Viscosi Plastic Viscosit Yield Point API FL • H 470' -1401' 9.0 -9.3 60 - 85 10 - 28 25 - 35 <8 8.5 -9.0 System Formulation: pre hydrated gel /produced water spud mud Product Concentration Fresh Water 0.905 bbl Soda Ash 0.5 ppb Aquagel 12 -15 ppb Caustic 0.1 ppb (9 pH) Barazan D as needed Baroid 41 as required for weight PAC L /Dextrid if required for <8 FL Aldacide G 0.1 ppb X -TEND II 0.02 ppb Concerns and Contingencies Surface Interval - (1,401' MD - 17-1/2" hole, 13 -3/8" casing) Mud Type: Pre - hydrated gel /produced water spud mud 1. Mud weight: Maintain the 9.0 — 9.3 ppg density or as directed. At TD the MW will be increased to 9.5 ppg. 2. Rheology: Maintain a YP between 25 -35 or as needed to achieve adequate hole cleaning. 3. Filtrate control: Maintain the filtrate <8 using DEXTRID and /or PAC L. Additions of CONDET may be required to control screen blinding /BHA balling. Losses in this interval can be controlled with additions of 3 ppb BAROFIBRE and 3 ppb of Baracarb 50 or by dedicated LCM pills. Operations Summary: Mix a -50 bbl LCM pill prior to drilling out. The pill formulation will be: 45 bbls base mud, 15 ppb BAROFIBRE, and 15 ppb of BARACARB 50. Pre - hydrated AQUAGEL should be used to maintain rheological parameters. Maintain the mud as clean as possible while drilling. Should sweeps be required, a high viscosity sweep is recommended. Run DFG (Drilling Fluid Graphics) to confirm hole cleaning efficiency based on current rheology, flow rates, angle and cuttings size. Sweep Formulation: 65 bbl of mud with -1 pp b of BARAZAN D+ added. AQUAGEL and BARAZAN D+ should be used to maintain rehology. X -TEND II should be used to supplement the AQUAGEL. DEXTRID and /or PAC L should be used for filtrate control. Background LCM (10 ppb total) BARACARBs /BAROFIBRE /STEELSEALs should be maintained in the system while drilling the surface interval to prevent losses and strengthen the wellbore. While drilling, monitor the torque and drag to determine if liquid lubricant is required. If so, approval from town will be required prior to additions of lubricants. STICKLESS 20 drilling beads could provide an alternative to lubricants. Additions of CONDET are recommended to reduce e incidence of bit Ilinnnthaakk r • ' d penetrating high -clay content sections. Maintain the pH in o a tip rdd itions of ALDACIDE G / X -Cide 207 should be made to control bacterial action. United States of America Cook Inlet Baroid Fluid Services Kenai Offshore, Alaska 1 -19 -10 -- Page 8 of 25 BAROID FLUID SERVICES. O e ra CHEVRON - MID - CONTINENT • P EBIZ v 1.3 Well Name M -10 At TD, a Wallnut "flag" (30 bbl pill with 5 ppb of WALLNUT M) or carbide pill should be pumped to gauge hole washout and to calculate the required cement volume. The cement will then be pumped and drilling mud will be used to bump the plug. Pretreat this chase mud with 1 ppb Bicarb and 0.5 ppb citric acid. The mud weight will be increased to 9.5 ppg before running surface casing and cementing. Losses have historically occurred in this interval. Ensure that the mud weight is maintained in the 9.0 -9.3 ppg range through this area. Maintaining background LCM concentrations at 10 ppb total ( BARACARBs /BAROFIBRE /STEELSEALs) has proven successful on M -17, M -18, M -06, and M -20. Stress slow pipe movement to the drillers to reduce surge /swab on the zone. Stage pumps on slowly after connections and begin rotation prior to pumping (this will break the gels and reduce the pressure required to break the gels). Reduce system YP with BARATHIN or CARBONOX as required for running casing (do not jeopardize hole conditions). Run casing carefully to minimize surge and swab pressures. Reduce the system rheology with BARATHIN or CARBONOX once the casing is landed to a YP < 20 (check with the cementers to see what yp value they have targeted). Consider spotting a STEELSEAL 400 LCM pill prior to running the 13 -3/8" casing if losses have been seen in this interval. The plug will be bumped with mud on the well. This well is a large borehole. Modeling shows that it will become much more difficult to clean if flowrates drop below 800 gpm. Maintain a minimum 25 YP at all times. Be prepared to increase the YP if hole cleaning becomes an issue. Run DFG (Drilling Fluid Graphics) to confirm hole cleaning efficiency based on current rheology, flow rates and cuttings size. Maximum Acceptable ROP in fph at Specified GPM and RPM GPM—) 600 800 1000 80 rpm 48 64 87 100 rpm 52 74 95 Baroid recommends a flowrate in the 800 gpm range to maximize hole cleaning efficiencies at these higher penetration rates. However if losses occur, the flow rate can be reduced in conjunction with a slower penetration rate which would reduce the ECD /losses. Hazards / Concerns — Surface Interval: • Optimize solids control equipment to maintain density and sand content. • Maintain YP between 25 -35 to optimize hole cleaning and to control ECD. • Pump high viscosity sweeps to enhance hole - cleaning efforts. Monitor sweep effectiveness. • Successfully land and cement casing. HALLI B U RTO N United States of America Cook Inlet Baroid Fluid Services Kenai Offshore, Alaska 1 -19 -10 -- Page 9 of 25 BAROID FLUID SERVICES• O era CHEVRON - MID - CONTINENT p EBIZ v 1.3 Well Name M -10 Interval Summary 9 -1/4" Intermediate Interval Hole Size 9.25 in Interval Top MD/TVD 1401 / 1371 ft Interval Bottom MD /TVD 5759 / 4535 ft Footage 4358 ft Casing ID /OD 6.276 / 7.000 in Casing Length 5759 ft Washout % 10 % Pit Volume 800 bbl SCE 68 % Dilution Volume 2050.35 bbl % Solids Retained (LGS) 6 % Mud on Cuttings 0 % Start Mud Weight 9 ppg Maximum Deviation 83 DEG End Mud Weight 9 ppg Estimated BHT 0 degF Carry Over Volume 0 bbl Fluid Volume Required 3444.57 bbl Carry Over Weight 0 ppg Weight Up Material Required 31300.161bm SAP Material Product Conc. (ppb) Units 201368 BA.POTASSIUM CHLORIDE - 50 LB 7.00 194 BAG 201068 CAUSTIC SODA 0.20 6 201681 BARAZAN D PLUS 1.00 56 201126 DEXTRID LT 2.00 56 201318 BA.PAC -L - 50 LB BAG 1.00 28 201329 BA.CLAYSEAL - 55 GAL DRUM 4.00 13 201583 BA.ALDACIDE G - 5 GAL CAN 0.10 3 201627 BA.GEM GP - 55 GAL DRUM 5.20 16 478095 BAROID 41 621 HALLI B U RTO N United States of America Cook Inlet Baroid Fluid Services Kenai Offshore, Alaska 1 -19 -10 -- Page 10 of 25 BARDID FLUID SERVICES Operator CHEVRON - MID-CONTINENT P EBIZ v 1.3 Well Name M -10 Interval Discussion 9 -1/4" Intermediate Interval Intermediate Hole Section Recommendations (9 -1/4" Pilot Hole, 7" casing to 5759') Mud Type: 2% KCI, CLAYSEAL, GEM GP Properties: Densit Viscosi Plastic Viscosit Yield Point API FL • H 1401' -5759' 9.0 -9.3 40 -53 6 - 15 13 - 20 <6 8.5 -9.5 System Formulation: 2% KCI, CLAYSEAL, GEM GP Product Concentration Water 0.905 bbl KCI 7 ppb Caustic 0.2 ppb (9 pH) Barazan D 0.75 ppb (as required 18 YP) Dextrid 1 -2 ppb PAC L 1 ppb Clayseal 4 ppb (initial 1.5 ppb) Aldacide G 0.1 ppb GEM GP 1.5% by volume (5.2 ppb) Baroid as needed for 9.0 ppq Special Mixing Instructions: • Mix in order as listed • Add polymers slowly to minimize fisheyes. Intermediate Interval (9 -1/4" hole, 7" casing to 5,759' MD) Mud Type: 9.0 ppg KCl/ Clayseal /GEM System. 1. Mud weight: Maintain the density at 9.0 ppg or as needed; use solids control and whole mud dilution. Increase density as required for hole stability /coal sloughing. Maximize solids control usage. 2. Rheology: Maintain a YP between 13 and 20. Pump high viscosity sweeps throughout the interval as needed, particularly prior to POH for casing. Optimized mud rheology, RPM, and flow rate will be the primary mechanisms for achieving hole cleaning in this deviated wellbore. Maximize pipe rotation (ideally > 100 RPM). 3. Other issues: The use of good drilling practices to minimize excessive swab and surge pressure should be employed to minimize the chances for losses and differential sticking. LCM (BARACARBs 5/25/50, STEELSEAL 50/100/400, BAROFIBRE) should be maintained at elevated concentrations while drilling coals to help strengthen the wellbore. Operations Summary: Mix a -50 bbl LCM pill prior to drilling out. The pill formulation will be the 50 ppb pill from the LCM tree. Mix the recommended LCM material in thinned back base mud. Drill out the cement/casing with the existing mud system. Soda ash and citric acid should be used to pretreat for any negative effects of the cement. After �i� ��1� 4elFen - iing to the KCI based fluid. BARACARB 5, 25 and /o pp0 should e ai pp ELSEAL 50/100/400 should be maintained at 5 b. The United States of America Cook Inlet Baroid Fluid Services Kenai Offshore, Alaska 1 -19 -10 -- Page 11 of 25 • BARDID FLUID SERVICES O era CHEVRON - MID P EBIZ v 1.3 Well Name M -10 CLAYSEAL concentration should be 1.5 ppb in the initial mix. As the mud shears, slowly raise the CLAYSEAL concentration to its full 4 ppb concentration. GEM GP should be maintained at 1.5% v/v (5.2 ppb). BARAZAN- D+ should be used to maintain rheological parameters. Maintain the mud as clean as possible while drilling. Should sweeps be required, a high viscosity sweep is recommended. Sweep Formulation: 50 bbl of mud with -1 ppb of BARAZAN D+ added. DEXTRID and PAC L should be used for filtrate control (6cc range). 4 ppb BAROTROL should be added to help control coals and shales. While drilling, monitor the torque and drag to determine if liquid lubricant is required. If so, approval from town will be required prior to additions of lubricants. STICKLESS 20 drilling beads could provide an alternative to lubricants. Additions of CONDET are recommended to reduce the incidence of bit balling and shaker blinding when penetrating high -clay content sections. Maintain the pH in the 8.5 - 9.5 range with caustic soda. Daily additions of ALDACIDE G / X -Cide 207 should be made to control bacterial action. Maintain Cl- with 2% KCI. The GEM GP can be raised above the 1.5% level to help reduce torque. Do not exceed 3% v/v of GEM GP. At TD, the pilot hole will be plugged back to -4500' MD and then an open hole sidetrack will be performed and drilled to the 7" casing depth at 5759' MD. The 7" casing will be run and cemented. Reduce system YP as required for running casing (do not jeopardize hole conditions). Run casing carefully to minimize surge and swab pressures. Reduce the system rheology once the casing is landed to a YP < 15 (check with the cementers to see what YP value they have targeted). Consider spotting a STEELSEAL LCM pill (20 ppb of the different sizes of STEELSEAL) prior to running the casing if losses have been seen in this interval. Suggested Drilling Parameters Pump rate and drill string rotation should be optimized through the real -time use of the DFG software for the actual ROP while drilling. The table below highlights the maximum ROP recommendations above which hole cleaning will become an issue in this interval. Maximum Acceptable ROP in f?h at Specified GPM and RPM GPM-) 500 600 700 60 rpm 62 82 102 80 rpm 118 144 175 100 rpm 146 173 208 Rotary speed is the most critical factor in cleaning this highly deviated wellbore. Maximize rpms at all times. ROPs above these levels or with no rotation (sliding) or low rpm will require an increased frequency of the following remedial hole cleaning practices: • extended periods of circulation (with maximum pipe rpm, targeting > 100 rpm) • hole cleaning sweeps (change flow regime of base mud by using fibers, density or rheology for carrying capacity) • connection practices - employing extended gpm, rpm and back reaming during the connection HALLI B U RTO N United States of America Cook Inlet Baroid Fluid Services Kenai Offshore, Alaska 1 -19 -10 -- Page 12 of 25 BARDID FLUID SERVICES O era CHEVRON - MID - CONTINENT p EBIZ v 1.3 Well Name M -10 Interval Summary 1 6 -1/8" Production Interval Hole Size 6.13 in Interval Top MD/TVD 5759 / 4535 ft Interval Bottom MD /TVD 7126 / 4550 ft Footage 1367 ft Casing ID /OD — Wire - wrapped screens 4.093 / 4.500 in Casing Length — Wire - wrapped screens 1367 ft Casing ID /OD 6.276 / 7.000 in Casing Length 5759 ft Washout % 10 % Pit Volume 630 bbl SCE 85 % Dilution Volume 228.50 bbl % Solids Retained (LGS) 4 % Mud on Cuttings 0 % Start Mud Weight 8.80 ppg Maximum Deviation 92 DEG End Mud Weight 8.80 ppg Estimated BHT 0 degF Carry Over Volume 0 bbl Fluid Volume Required 1149.33 bbl Carry Over Weight 0 ppg Weight Up Material Required 27968.70 lbm SAP Material Product Conc. (ppb) Units 201368 BA.POTASSIUM CHLORIDE - 50 LB 7.00 177 BAG 201068 CAUSTIC SODA 0.20 6 201652 BA.N -VIS - 25 LB BAG 1.50 76 201112 BA.N -DRIL HT PLUS - 50 LB BAG 4.00 93 201583 BA.ALDACIDE G - 5 GAL CAN 0.10 3 201627 BA.GEM GP - 55 GAL DRUM 5.20 14 201606 BA.BARACARB 5 - 50 LB BAG 7.00 161 201306 BARACARB 25 7.00 161 201311 BARACARB 50 7.00 161 HALLIBURTON United States of America Cook Inlet Baroid Fluid Services Kenai Offshore, Alaska 1 -19 -10 -- Page 13 of 25 BAROID FLUID SERVICES O era CHEVRON - MID - CONTINENT p EBIZ v 1.3 Well Name M -10 Interval Discussion 6 -1/8" Production Interval Horizontal Section Recommendations (6 -1/8" Horizontal Hole, 4 -1/2" Screens 7,126') Mud Type: 2% KCI BARADRILn Properties: Density Viscosity Plastic Viscosity Yield Point API FL MBT �H 5759' — 7126' 8.8 — 9.0 40 -53 11 - 18 18 - 25 <6 <3 8.5 -9.5 System Formulation: 2% KCI BARADRILn Product Concentration Freshwater 0.943 bbl KCI 7 ppb Caustic 0.2 ppb (9 pH) N -VIS 1.5 ppb (as required 20 YP) N -DRIL HT+ 4 ppb Aldacide G 0.1 ppb GEM GP 1.5% by volume (5.2 ppb) BARACARB 5 7 ppb BARACARB 25 7 ppb BARACARB 50 7 ppb Special Mixing Instructions: • Mix in order as listed • Add polymers slowly to minimize fisheyes. Production Horizontal Interval (6 -1/8" hole, 4 -1/2" Screens 7,126 MD) Mud Type: 8.8 — 9.0 ppg 2% KCI BARADRILn 1. Mud weight: Maintain the density at 8.8 — 9.0 ppg or as needed with BARACARBs; use solids control and whole mud dilution to maintain a clean fluid. Maximize solids control usage. 2. Rheology: Maintain a YP between 18 and 25. Pump high viscosity sweeps throughout the interval as needed, particularly prior to POH for casing. Optimized mud rheology, RPM, and flow rate will be the primary mechanisms for achieving hole cleaning in this deviated wellbore. Maximize pipe rotation (ideally > 100 RPM). 3. Other issues: The use of good drilling practices to minimize excessive swab and surge pressure should be employed to minimize the chances for losses and differential sticking. BARACARBs should be maintained in the system for sealing of the production sands. Operations Summary: Drill out the cement/casing with the existing mud system. Soda ash and citric acid should be used to pretreat for any negative effects of the cement. After obtaining a leak off, begin drilling ahead displacing to the 2% KCI BARADRILn system. A spacer (15 bbls 2% KCI BARADRILn plus 1 ppb N -VIS) should be pumped when th�sy This low solids mud system is designed to reduce a ge t • sa s an p epilhilacement. ould be taken to keep the system clean. Barite will not be used United States of America Cook Inlet Baroid Fluid Services Kenai Offshore, Alaska 1 -19 -10 -- Page 14 of 25 BARDID FLUID SERVICES Operator CHEVRON - MID - CONTINENT Op EBIZ v 1.3 Well Name M -10 in this system. If a weight up becomes necessary, BARACARBs should be utilized. GEM GP should be maintained at 1.5% v/v (5.2 ppb). N -VIS should be used to maintain rheological parameters. Maintain the mud as clean as possible while drilling. Maintain the MBT of the fluid below a 3. Whole mud dilutions may be necessary to maintain a clean fluid. Should sweeps be required, a high viscosity sweep is recommended. Sweep Formulation: 10 bbl of mud with —1 ppb of N -VIS added. N -DRIL HT+ should be used for filtrate control ( <6). While drilling, monitor the torque and drag to determine if liquid lubricant is required. If so, approval from town will be required prior to additions of lubricants. STICKLESS 20 drilling beads could provide an alternative to lubricants. Maintain the pH in the 8.5 — 9.5 range with caustic soda. Daily additions of ALDACIDE G / X -Cide 207 should be made to control bacterial action. Maintain Cl- with 2% KCI. The GEM GP can be raised above the 1.5% level to help reduce torque. Do not exceed 3% v/v of GEM GP. This interval will have a wire - wrapped screen, open hole completion ran. Depending on the final completion design, it may be necessary to displace the open hole volume at TD before pulling out of the hole to run the screens. Breakers will be used to treat the mud left in the open hole. Suggested Drilling Parameters Pump rate and drill string rotation should be optimized through the real -time use of the DFG software for the actual ROP while drilling. The table below highlights the maximum ROP recommendations above which hole cleaning will become an issue in this interval. Maximum Acceptable ROP in fph at Specified GPM and RPM GPM ---> 175 200 225 60 rpm 50 60 81 80 rpm 70 80 90 100 rpm 95 110 130 Rotary speed is the most critical factor in cleaning this highly deviated welibore. Maximize rpms at all times. ROPs above these levels or with no rotation (sliding) or low rpm will require an increased frequency of the following remedial hole cleaning practices: • extended periods of circulation (with maximum pipe rpm, targeting > 100 rpm) • hole cleaning sweeps (change flow regime of base mud by using fibers, density or rheology for carrying capacity) • connection practices - employing extended gpm, rpm and back reaming during the connection HALLIBURTON United States of America Cook Inlet Baroid Fluid Services Kenai Offshore, Alaska 1 -19 -10 -- Page 15 of 25 BAROID FLUID SERVICES CHEVRON - MID - CONTINENT Operator EBIZ v 1.3 Well Name M -10 Product Description AQUAGEL AQUAGEL® treated sodium montmorillonite is a finely ground, premium -grade western sodium bentonite which meets the American Petroleum Institute Specification 13A, Section 9 requirements. AQUAGEL® viscosifier provides viscosity and gelling characteristics to most water -based drilling fluids. BARAZAN D PLUS BARAZAN D PLUS agent is a powdered, dispersant -added biopolymer (xanthan gum); helps provide viscosity and suspension in fresh water, sea water, sodium bromide, potassium bromide, potassium chloride, and sodium chloride -based fluids. It has been specially formulated to help enhance dispersibility. 1 BA.PAC -L - 50 LB BAG PAC -L polyanionic cellulose is used to provide filtration control in most water -based drilling fluids. PAC -L filtration control agent can also be used as a thinner in sea water and brine -based fluids in small concentrations. DEXTRID LT DEXTRID LT modified starch, helps provide filtration control with minimum viscosity buildup in water -based drilling fluids. Through its coating mechanism, DEXTRID LT helps to reduce dispersion of clay particles and stabilize reactive formations. DEXTRID LT is stable against bacterial degradation. BA.ALDACIDE G - 5 GAL CAN ALDACIDE G glutaraldehyde solution is used to control bacteria growth in water -based drilling fluids. ALDACIDE G microbiocide is recommended for use with systems containing polymers that are readily biodegradable (i.e. starches, biogums, etc.). BA.X -TEND II - 2 LB BAG X -TEND II polyacrylate/ polyacrylamide copolymer is used to help increase the yield of bentonite clays in water -based drilling fluids. X -TEND II extender acts as a selective flocculant to agglomerate or coagulate colloidal solids. This allows for more effective removal of solids by the surface solids control equipment. X -TEND II extender treated -fluids are shear thinning which promotes faster drilling rates and more efficient hole cleaning. X -TEND II extender was specifically developed to work with AQUAGEL® viscosifier products. 1 BA.CLAYSEAL - 55 GAL DRUM CLAYSEAL low molecular weight amphoteric material helps reduce dispersion and hydration of reactive clays and shale formations. ■—■A st ilizermyleer greater than 300 °F (149 °C). United States of America Cook Inlet Baroid Fluid Services Kenai Offshore, Alaska 1 -19 -10 -- Page 16 of 25 BAROID FLUID SERVICES CHEVRON - MID - CONTINENT Operator EBIZ v 1.3 Well Name M -10 1 BA.GEM GP - 55 GAL DRUM GEM CP polyalkylene glycol is used in water -based drilling fluids to help improve lubricity and shale stability. It is recommended for use in potassium -based and sodium -based salt (2 -15 percent by weight) systems in areas where highly reactive clays are anticipated. BA.N -VIS - 25 LB BAG N -VIS polymer is a premium quality xanthan product recommended for use where formation protection, solids suspension, and improved hole cleaning are primary concerns. BA.N -DRIL HT PLUS - 50 LB BAG N -DRIL HT PLUS filtration control agent is a specially processed, stabilized nonionic starch derivation for controlling high pressure - high temperature filtrate loss at temperatures up to 250 °F (121 °C) and enhancing the low shear rate viscosity of a fluid containing xanthan gum biopolymer. This unique polymer combination is synergistic and yields improved static suspension. Fluid compositions mixed with N -DRIL HT PLUS filtration control agent can be used to drill into pay zones and under ream. It can also be used as pre and post gravel pack fluid and as lost circulation pills. BA.BARACARB 5 - 50 LB BAG BARACARB sized - calcium carbonate (ground marble) is available in six grades: 5, 25, 50, 150, 600, 2300. BARACARB 25 BARACARB sized - calcium carbonate (ground marble) is available in six grades: 5, 25, 50, 150, 600, 2300. BARACARB 50 BARACARB sized - calcium carbonate (ground marble) is available in six grades: 5, 25, 50, 150, 600, 2300. HALLI B U RTO N United States of America Cook Inlet Baroid Fluid Services Kenai Offshore, Alaska 1 -19 -10 -- Page 17 of 25 FLUID SERVICES • CHEVRON - MID - CONTINENT BAROID Operator EBIZ v 1.3 Well Name M -10 Appendixes 17-Y2" Surface Hole Modeling Jpeala Chevron Opealor Chevron Conti" Chevron AOLWGEL Spud Mud 2480 X Wig Jpealor Chenon Oneida: Chem OpealaChenon RawRale=800On ROP =800 2597XCuHogEN Collings Transpal Average Hale ECO MudWeighl= 92blgal CAngDia=.25n Load, Z Elf avg %, V, ft/in Angle Iblgal R-1480 0128 rpm t HD 120 rper3m l CE3m l li ' I w1oCd t 1 ' SX4.216a514.Ofl� 27 n 6.W. 1._,.I 470049.540 923219.510 13/0 254 80001799!11N 2.80 111111 9.24919.589 hi 5x3x804.010 1030- 00 17.5i 1401.0(13110)k 926579.590 hal \975a 3.aam! r m 5 10 15 20 25 5 50 100 0 43 85 30 60 90 910 960 1010 .l he CUT tine tiA lli41411sunlromump rates lower then 800 gpm. RPM'S have little effect in this United States of America Cook Inlet Baroid Fluid Services Kenai Offshore, Alaska 1 -19 -10 -- Page 18 of 25 BAROID FLUID SERVICES. O e r• CHEVRON - MID - CONTINENT 1? EBIZ v 1.3 Well Name M -10 9 -1/4" Intermediate - Pilot Hole Modeling Cpealor.Chelan Irtevi91141rremelaleFial : 22 KCUC1AAYSEAUGEMGP 1.849 %Gltrgidal Ai M•10 Flan Rale =500ga1/i BOP =80flrh 1,188kCultrgE11 Cuttings Tramper) Average He ECU Mud Alt. 9.2b/gal Cinig Dia = .15n load Eft avg2 V, Nil Angle blgal R•1s@83 Ii1a rpa1HG80rprr331C =3a! C ill wlo 1 - wi, jul 12415n 41101410.0) ft — 117 125511.412 Elgd 1.03 '" 1 12415n r 1000 Hi Opp 5295!9.419 Ngd / • 124150 133 1401.0 (1343.010 9.29919.425 blgH l_ 9.25i, 2000 220 1821.0 0 732.3)11 \ \ 135411.490 re/gal 1 — 1 r 5250 5. x 4.276 x 6258.081 1.51 32000(2186.0)11 — 145219.640 blga au 3700.0(3241.0)11 — l26 I 1465 19.653 6/gel 4000• 1 9.25 Si 43013.0 13307 3)11 — — 215 1416 11060 ttgal 925n 5065 3.39 ! 9101 (4348.3 )11 — 19.687 taal — 1 925 9493 n 55000(45940)ft 4.2B 551219.116 b1g4 b 125n 6000 - 3l1 1 56520(48760)8 398 553019142 NO 5n = r 285 6400.0 (4843.0) 0 • :555 1 9 . 7 1 6 blgd 5. x 3 x 413011 Ole aill n 00 � 6843u 91o�1,1 � 6. x 225 x 1120111 1000 1 r 1 1 1 1 1 1 'i r- 17024.3 5 10 15 20 25 0 50 100 0 124 241 30 60 90 9.10 9.60 1010 1.5 h CUDine C 1 cl ni i rpm, and 80 ft/hr. RPMs are critical for cleaning this highly e e I w r r hole cleaning. United States of America Cook Inlet Baroid Fluid Services Kenai Offshore, Alaska 1 -19 -10 -- Page 19 of 25 BARDID FLUID SERVICES CHEVRON — MID - CONTINENT Operator EBIZ v 1.3 Well Name M - 6 -1/8" Production Horizontal Hole Modeling ]peals: Chenm Ir vet 6.125 Hsmr4al : 2X KU BARADRItn 2472 X Cu tig Teri et M.10 FIN Rare =20004 R0P =60IUh 1.760X Curing Ell Cutting: Import Average Hole ECO Mud Wei* = 88b /gd Oltb9Dia =.1511 Load,X Elf avgZ , V,Mm A4�e lb/gal R-1s@60flMI0rpm /HD80ipalm /O�m/ wlo Cul "/ ` 6.216 n 84 9.321/ 4 91 3 35 0 b/gd 1.15' 611611 r - 1010- • 800.0 (793.0)11 1. 1 111 9322/9.433 b/gd &276n 31 1401.0(1343011 r ' - 3344/9.470 b/gd 6276 in 252 tw ( M1119 1 1827.0 (1732.010 r - 9350 / 9.486 b/gd &27611 32110.01278610 3000 _ ■ 1 9399/9.606 b/gd I &27611 —{ 3.5 x 2764x ,'4.001 3111003247.011 3394/9.587 b /gal - L &21611 '. 43000(33]7.0)0 9389 / 9.567 h/gd \ - 23J 6.27611 50000 (4348A) It r. 9.400/1593 WO 5000 i 412 6.276 in 1 53]0.0 (4594.01 ft 9.424/9.638 b/gd 4.71 6.27611 - - NI:0(4702011 9466/1! b/gal mil _ 4.51 1 6.276n J - III— 56520(4676.0)8 _ J 9.452/9.673 b&gel 411 6.27611 14.74 61E0 (472601k . 9473/9197 13/gel 7000- 1 &125in \ 6347.0147540)3 9499!9.126 Ngd 13.5 x 2063 x 6261111 X1.19 1 Q &125n 4.75 x 225 x 243031 r T T r r 1 imp 7468.0(47500)8 5 10 15 20 25 0 50 100 0 164 328 3] 60 90 am 9.80 1080 9694/1921 Mel 231rCUT I O Good hole cleaning is achieved at 200 gpm, 80 rpm, and 60 ft/hr. Again, RPMs are critical for cleaning this I1 ALt1BE L JR1O Nide poor hole cleaning. ECD rises rapidly with increased pump United States of America Cook Inlet Baroid Fluid Services Kenai Offshore, Alaska 1 -19 -10 -- Page 20 of 25 BAROID FLUID SERVICES • CHEVRON - MID - CONTINENT Operator EBIZ v 1.3 Well Name M -10 Losses Chevron Lost Circulation Decision Tree fI Payzone Mud Systems + + + Partial Seepage 20-60 bbllhr Severe Total 5-20 bbllhr Static Static 60 -200 bbllhr Static > 200 bbl Static Treat Act System Treat Active System + I i with 5 sxlhr Baracarb with 10 sxlhr Baracarb 160 -150 bbl/hr Static I 150 -200 bbllhr Static I Drill Across Fault I 50/150 150 4, $ I Drill Across Fault I Drill Across Fault Pump gunk squeeze + pill to allow POH Dynami (Volume to be Dynamic Losses < 15 Yes determined based Losses < 15 Y Pump gunk bbllhr I bbl/fir , Pump STEELSEAL — squeeze pill to upon losses � HYDRO -PLUG Pill allow POH V Drill Ahead 'Drill Ahead (Volume to be Contact Drilling No i No See attached procedure d based Engineer or Engineer Increase Treatment to V upon losses) on call 10 sxlhr Baracarb 50/ 50 ppb LCMIMud Pill: 150 20 bbls Base mud �, 1 / 10 ppb Baracarb 25 Contact Drilling Engineer or • 10 ppb Baracarb 50 Engineer "On Call" Contact Drilling Engineer 10 ppb Baracarb 150 or Engineer on call _ Dynamic 10 ppb Steelseal 50 Losses < 15 Yes 10 ppb Steelseal 400 Plan to pump a second bbl/hr 50 -80 bbl gunk Drill Ahead w ' squeeze pill if massive No losses continue. ``---- Pump gunk Consider cement / 20 ppb LC AIMud Pill: Dynamic squeeze pill plugback contingency 20 bbls base mud Losses < 20 Yes (Volume to be 5 ppb Baracarb 50 bbllhr j determined based 5 ppb Baracarb 150 I Drill Ahead upon losses 5 ppb Steelseal 50 5 ppb Steelseal 400 No i Contact the Engineer 1)Chevron must approve any steps past PARTIAL losses. g 2) Dill across fault or loss zone 1.5.2.0 times the length of the on call to determine if throw before spotting reverse gunk squeeze pills. Dynamic additional LCM 3) PBL sub should be run in BHA to spot pills if 'Partial Loss' cases or Losses < 15 Yes treatments are to be above are anticipated pia to drilling to allow the spotting of LCM bbllhr made or to proceed to pills. 4) LCM pill volume = 300'-600' column based upon actual hole IDrill Ahead gunk squeeze pill diameter. 5)PRIOR TO ANY LCM PILL, APPROPRIATE DISCUSSIONS AT No THE RIG MUST BE MADE TO MINIMIZE THE POTENTIAL FOR * PLUGGING THE DRILL STRING. Proceed to 'Partial Losses' Pill Pot IN. Il. IBURTON United States of America Cook Inlet Baroid Fluid Services Kenai Offshore, Alaska 1 -19 -10 -- Page 21 of 25 BARDID FLUID SERVICES• • CHEVRON -MID- CONTINENT Operator EBIZ v 1.3 Well Name M -10 STEELSEAL / HYDRO -PLUG Procedure 1. Pump 50 bbl STEELSEAL pill: 45 bbl mud with 50 sx (50 ppb) STEELSEAL added 2. Chase with 50 bbl HYDRO -PLUG pill: 50 bbl water, 80 sx (80 ppb) HYDRO -PLUG 3. Make sure the HYDRO -PLUG pill clears the pipe. Apply a squeeze of 150 -250 psi. (see attached) 4. If possible, drill through the loss zone prior to spotting the pills, otherwise there's a good chance you'll lose circulation again. HYDROPLUG Mixing and Spotting Procedures Overview HYDRO -PLUG is self - expanding lost circulation material (LCM) that hydrates with time and temperature. HYDRO - PLUG is pumped in an un- hydrated state in a liquid medium. The liquid pill is designed to pass through measurement - while- drilling (MWD) and other downhole tools. The HYDRO -PLUG lost circulation treatment is compatible with both invert emulsion and waterbase fluids. Rig pumps are normally used to place HYDRO -PLUG. No special equipment is required. For best results, FRESH COLD water only should be used to mix in. Mixing Procedures Caution: Do not add Lime or Caustic Soda. Make sure the pill pit is clean. Do not add any chemicals other than the viscosifiers recommended below. • Un- weighted - No viscosifying agent is required. - Mix 80 lbs per bbl of HYDRO -PLUG in fresh water. - Pump immediately. • Weighted up to 12.0 ppg - Mix 0.50 to 0.75 lbs per bbl BARAZAN in fresh water. - Add barite for desired density - Then add 80 lbs per bbl HYDRO -PLUG through the hopper. Run a small stream of fresh water while mixing the Hydro - Plug, as barite will absorb some free water. - Pump immediately. • Weighted from 12.0 to 17.0 ppg - Mix 6 lbs per bbl AQUAGEL in fresh water. - Add barite for desired density. - Then add 60 lbs per bbl HYDRO -PLUG through the hopper. Run a small stream of fresh water while mixing the Hydro - Plug, as barite will absorb some free water. - Pump immediately. Pill Volumes • 8 Hole: 40 to 50 bbl minimum. • 6" Hole: 25 to 30 bbl minimum. HALLI B U RTO N United States of America Cook Inlet Baroid Fluid Services Kenai Offshore, Alaska 1 -19 -10 -- Page 22 of 25 BARDID FLUID SERVICES • O era CHEVRON - MID - CONTINENT p EBIZ v 1.3 Well Name M -10 Spotting Procedures • No spacers are required as a water based mud system is in use. • Use the rig pump. • Pump the pill and be sure to clear the pipe. 10 to 15 bbl excess. • Then apply a gentle squeeze (if possible) of 150 to 250 psi. Note: Plan and prepare ahead of time. The mixing, pumping and spotting of the pill should take no more than 90 to 120 minutes. Setting Times Ensure to obtain the correct BHT prior to pumping. Temp Time 70 — 100° F 5 — 7 hours 100 —150° F 4 — 6 hours 150 — 200° F 3 — 4 hours 200 — 300° F 2 — 3 hours Another Application — Cement Plug/Cement Squeeze HYDRO -PLUG can be used to help achieve a successful cement job. Procedure: Mix HYDRO -PLUG material as per above mixing instructions, then pump and clear pipe prior to pumping cement. As the cement is pumped, HYDRO -PLUG will penetrate and seal fractures, thus allowing cement returns to surface. Technical Information Packaging 50 -lb bags Appearance Dark gray mixture of flakes and granules Specific gravity 2.0 HALLI B U RTO N United States of America Cook Inlet Baroid Fluid Services Kenai Offshore, Alaska 1 -19 -10 Page 23 of 25 • BARDID FLUID SERVICES S CHEVRON - MID - CONTINENT Operator v 1.3 Well Name M -10 Fluid Volumes: Surface Interval: At spud approximately 800 barrels of new fluid will be built. Dilution rates for the 17 %2" section are anticipated at 1.2 bbl/ft. Estimated Fluid Disposal Volumes: P10 P50 P90 Initial build 700 800 1000 Dilution 655 1115 1545 Total 1355 1915 2545 Estimated Drill Solids Disposal Volumes: P10 P50 P90 Cuttings Volume 275 430 565 Wetting Fluid 250 430 800 Total 525 860 1955 9 -1/4" Intermediate Interval: Approximately 1000 bbl of new mud will be built. Dilution rates for the 9 -1/4" intermediate interval are anticipated at 0.8 bbl /ft. Estimated Fluid Disposal Volumes: P10 P50 P90 Initial build 800 1000 1200 Dilution 4000 4400 6420 Total 3400 5400 7120 Estimated Drill Solids Disposal Volumes: P10 P50 P90 Cuttings Volume 400 500 600 Wetting Fluid 200 500 1200 Total 600 1000 1800 HALLIBURTON United States of America Cook Inlet Baroid Fluid Services Kenai Offshore, Alaska 1 -19 -10 -- Page 24 of 25 BARDID FLUID SERVICES • • CHEVRON - MID - CONTINENT Operator EBIZ v 1.3 Well Name M -10 6 -1/8" Production Interval: Dilution rates for the 6 - 1/8" production section are anticipated at 0.40 bbl/ft. Estimated Fluid Disposal Volumes: P10 P50 P90 Initial build 700 1000 1200 Dilution 465 620 1240 Total 1165 1620 2440 Estimated Drill Solids Disposal Volumes: P10 P50 P90 Cuttings Volume 60 80 160 Wetting Fluid 100 160 320 Total 160 240 480 Fluid Costs: P10 P50 P90 17 -h /2" Surface 51,000 65,000 130,000 9 -1/4" Intermediate 240,000 308,000 615,000 6 -1/8" Production 100,000 175,000 350,000 Total $391,000 $548,000 $1,095,000 HALLI B U RTO N United States of America Cook Inlet Baroid Fluid Services Kenai Offshore, Alaska 1 -19 -10 -- Page 25 of 25 Chevron • Seelhead Platform IMO ell M -10 %. Proposed 01 -19 -10 Casing &Tubing Detail RKB to TBG Head = 78' TOP BTM BTM SIZE WT GRADE CONN MIN ID (MD) (MD) (TVD) 28" Structural 27" Surface 480' 480' — sssv 13 -3/8" 68 L -80 BTC 12.415 Surface 1401' 1371' 7" 26 L -80 DWC 6.276 Surface 5759 4535 28" Conductor 4.0 9.5 SLHT 5600 7126 4550 al — –d ECP Stage Collar 3 1/2 9.2 L -80 TC -II 2.992 Surface 5560 4507 Logging Detail J Hole LWD /MWD Wire Line Mud Logging Notes Section 17 % gMWD, GR/RES Gas On Site Geologist 1 13 3/8" in 17'/:" Hole 8 % Triple Combo Mudlog On Site Geologist 6 1/8" Triple Combo Mudlog On Site Geologist J Perforation Detail MD TVD Zone Density Anticipated Pore (SPF) Pressure (psi) E J 3 Stage Collar NA J Item Depth MD Depth TVD OD ID 13 3/8 ECP Stage Collar 421' 421' r 7" Casing in 91/4" Hole 9 5/8 Cement stage collar 4750' 4092 6 1/8" hole w/ 4" open hole screen 4" wire wrap screen Cementing Information Description Volume Density Yield (ft3 /sx) Notes (bbls) (Ppg) j TD: 7126 MD 1 3 3/8 Surface 1st stg 288 13.2/14.0 13 3/8 Surface 2 stg 260 13.2 7 Intermediate 1 stg 89 14.0 7 Intermediate 2 stg 250 13.2 MAX HOLE ANGLE = 89.6° @ 5977' MD Well retail f)RAWN RY TF /.IAR 01/1 9/10 Chevron ft/ %0 $chlumberger M -10 P20 D2 Pro � ) Proposal p Report Date: January 19, 2010 Survey DLS Computation Method: Minimum Curvature / Lubinsld Client: Chevron Vertical Section Azimuth: 10.000° Field: Trading Bay Unit Vertical Section Origin: N 0.000 ft, E 0.000 ft Structure / Slot: Steelhead / leg Al slot 7 0 �'� g'1 O TVD Reference Datum: Rotary Table Well: M -10 TVD Reference Elevation: 160.0 ft relative to Mean Sea Level • Borehole: M -10 rove S ea Bed / Ground Level Elevation: - 185.000 ft relative to Mean Sea Level UWUAPI#: 507332058800 Ap p Magnetic Declination: 18.362° Survey Name 1 Date: M -10 (P20) D2 Sand / January 19, 2010 Total Field Strength: 55541.553 nT Tort 1 AHD 1 DDI 1 ERD ratio: 205.594° /4286.30 ft / 6.140 / 0.942 Magnetic Dip: 73.639° • Grid Coordinate System: NAD27 Alaska State Planes, Zone 04, US Feet • Declination Date: January 23, 2010 Location Lat/Long: N 60.83178787, W 151.60239696 Magnetic Declination Model: BGGM 2009 Location Grid NIE Y/X: N 2499450.290 ftUS, E 214080.250 ftUS ■ North Reference: True North Grid Convergence Angle: - 1.39928826° Total Corr Mag North -> True North: +18.362° Grid Scale Factor: 0.99999302 Local Coordinates Referenced To: Well Head Measured Azimuth Vertical NS EW Mag 1 Gray Directional Zone Of Zone Of Comments Inclination Sub•Sea ND ND DLS Northing Easting Depth True Section True North True North Tool Face Difficulty Exclusion Exclusion (ft) (deg) (deg) (ft) (ft) (ft) (ft) (ft ) (deg) (deg /100 ft) Index (deg) Alert (ftUS) (ftUS) 4043.19 21.63 85.04 3308.61 3468.61 - 1385.77 - 1511.28 590.57 89.70L 2.92 5.34 21.08 2497925.05 214633.74 4142.25 22.30 70.56 3400.54 3560.54 - 1371.81 - 1503.44 626.51 76.94L 5.50 5.37 17.59 2497932.01 214669.86 4236.84 23.60 60.22 3487.68 3647.68 - 1350.86 - 1488.06 659.89 78.46L 4.47 5.39 15.58 2497946.57 214703.60 4331.65 24.95 49.21 3574.15 3734.15 - 1323.21 - 1465.56 691.52 75.74L 4.97 5.42 13.59 2497968.30 214735.76 4426.40 26.15 40.71 3659.66 3819.66 - 1289.76 - 1436.66 720.27 HS 4.07 5.44 12.54 2497996.48 214765.22 Tie-in Survey 4426.40 26.15 40.71 3659.66 3819.66 - 1289.76 - 1436.66 720.27 48.04L 0.00 5.44 12.54 2497996.48 214765.22 KOP Cry 5/100 " 4500.00 28.27 35.94 3725.12 3885.12 - 1260.14 - 1410.25 741.09 25.00R 4.13 5.46 13.52 2498022.37 214786.67 Cry 5/100 4550.00 30.55 38.02 3768.68 3928.68 - 1238.27 - 1390.66 755.86 31.30L 5.00 5.47 16.02 2498041.60 214801.92 4600.00 32.71 35.61 3811.25 3971.25 - 1214.87 - 1369.66 771.56 29.25L 5.00 5.49 17.68 2498062.21 214818.12 4700.00 37.14 31.57 3893.24 4053.24 - 1162.40 - 1321.94 803.11 25.93L 5.00 5.52 21.49 2498109.14 214850.83 • 4800.00 41.69 28.28 3970.48 4130.48 - 1102.71 - 1266.90 834.69 23.39L 5.00 5.55 25.70 2498163.39 214883.75 4900.00 46.31 25.54 4042.41 4202.41 - 1036.26 - 1204.96 866.05 21.42L 5.00 5.58 30.13 2498224.55 214916.61 5000.00 50.99 23.19 4108.46 4268.46 - 963.56 - 1136.58 896.96 19.87L 5.00 5.61 34.70 2498292.16 214949.18 5100.00 55.71 21.14 4168.14 4328.14 - 885.15 - 1062.29 927.17 18.64L 5.00 5.64 39.37 2498365.68 214981.20 5200.00 60.46 19.30 4220.99 4380.99 - 801.64 - 982.65 956.47 17.67L 5.00 5.67 44.10 2498444.58 215012.43 5300.00 65.24 17.63 4266.61 4426.61 - 713.65 - 898.27 984.62 16.91L 5.00 5.70 48.88 2498528.25 215042.63 5400.00 70.03 16.09 4304.66 4464.66 - 621.86 - 809.80 1011.41 16.32L 5.00 5.74 53.68 2498616.05 215071.57 5500.00 74.83 14.63 4334.84 4494.84 - 526.97 - 717.89 1036.64 15.88L 5.00 5.77 58.51 2498707.31 215099.04 5600.00 79.65 13.24 4356.92 4516.92 - 429.71 - 623.26 1060.12 15.57L 5.00 5.80 63.35 2498801.33 215124.82 5700.00 84.46 11.90 4370.74 4530.74 - 330.80 - 526.62 1081.66 15.38L 5.00 5.84 68.21 2498897.41 215148.72 End Cry 5752.58 87.00 11.20 4374.65 4534.65 - 278.38 - 475.25 1092.16 -- 5.00 5.85 70.77 2498948.51 215160.46 WellDesign Ver SP 2.1 Bld( users) leg Al slot 7\M- 10\1- 10\M -10 (P20) D2 Sand Generated 1/19/2010 2:06 PM Page 1 of 2 I Measured Azimuth Vertical NS EW Mag ! Grev Directional Zone 0f Zone Of Comments Inclination Sub-Sea TVD DLS Depth True Section True North True North Tool Face Difficulty Exclusion Exclusion Northing Fasting (k) (deg) (deg) (k) (ft) (ft) (ft ) (ft) (deg) (deg1100ft ) Index (deg) Alert (ftUS) I (ftUS) 7" Csg 5759.28 87.00 11.20 4375.00 4535.00 - 271.70 - 468.70 1093.45 -- 0.00 5.86 70.77 2498955.03 215161.92 Cry 6/100 5772.58 87.00 11.20 4375.70 4535.70 - 258.42 - 455.66 1096.03 78.05L 0.00 5.86 70.77 2498968.00 215164.82 5800.00 87.34 9.59 4377.05 4537.05 - 231.03 - 428.73 1100.98 77.97L 6.00 5.87 71.18 2498994.81 215170.42 5900.00 88.60 3.72 4380.59 4540.59 - 131.31 - 329.51 1112.55 77.76L 6.00 5.90 72.79 2499093.71 215184.41 End Cry 5977.31 89.59 359.19 4381.81 4541.81 -54.89 - 252.25 1114.51 -- 6.00 5.93 74.16 2499170.90 215188.26 TD / 4 -1/2" Lnr • 7126.51 89.59 359.19 4390.00 - 4550.00 1073.87 896.80 1098.19 - -- 0.00 6.14 74.17 2500320.00 215200.00 Survey Error Model: SLB ISCWSA version 24*** 3 -D 95.00% Confidence 2.7955 sigma Surveying Prog: MD From (ft 1 MD To (ft) EOU Freq Survey Tool Type Borehole a Survey 0.00 345.00 Act -Stns SLB_GYRO -MWD -Depth Only M -10PB1 -> M -10PB1 current • 345.00 1369.70 Act -Stns SLB_GYRO -MWD M -10PB1 -> M -10PB1 current 1369.70 4426.40 Act -Stns SLB_MWD- STDAA1 M -10PB1 -> M -10PB1 current 4426.40 5759.28 1/100.00 SLB_MWD- STDAA1 M -10 -> M -10 (P20) D2 Sand 5759.28 7126.51 1/100.00 SLB_MWD- STDAA2 M -10 -> M -10 (P20) D2 Sand Legal Description: Northing (Y) fftUSl Easting (X) lftUSt Surface : 4227 FSL 4816 FEL S33 T9N R13W SM 2499450.29 214080.25 TD / BHL : 5124 FSL 3717 FEL S33 T9N R13W SM 2500320.00 215200.00 • WellDesign Ver SP 2.1 Bld( users) leg Al slot 7\M- 10\M- 10W -10 (P20) D2 Sand Generated 1/19/2010 2:06 PM Page 2 of 2 I Chevron %./ Schlumberger %. WELL I FIELD STRUCTURE M -10 (P20) Trading Bay Unit Steelhead Magnetic Parunelea Surface LOC4OOn NAD27 Alaska State Plume Zane 04. U5 Feet Miscellaneous Model: BGGM 2009 Dip: 73.639• Date'. January 23. 2010 tat N60 44 54.436 Northing: 2499450.29 PUS Gn6 Cons: - 1.39926426' I Slot: leg Al slot T ND Rel: Rotary Table (160.00 fl above Mean S69 Level) Mag Dec'. •15.362' FS: 55541.6 nT Lon: W151 36 6.629 Basting: 214060.25 flUS Sub Fact 09999930245 Plan: M -10 (P20) 02 Sand Srry Date: January 19, 2010 -1200 -800 -400 0 400 800 1200 -10PB1 cufrent • Tie-in Survey KOP Cry 5/100 Cry 51100 4000 4000 0 0 v , r C 4400 ' • '• Crv•UWO a �Ire1re^1:nr 4400 d.. End bry II 0) 8 10 (P2d) D2 Sand Cl, a 4800 4800 • • 101 current 5200 5200 -1200 -800 -400 0 400 800 1200 Vertical Section (ft) Azim = 10 °, Scale = 1(in):400(ft) Origin = 0 N/ -S, 0 E/ -V Chevron • Schiumberger WELL FIELD STRUCTURE M -10 (P20) I Trading Bay Unit I Steelhead Mapn. Palamelers Surface La .1327 Alaska Stale Planes, Zone 05, US Feet O eaus 560 Mo. BOOM 2009 Dip: 73.639 Oats: January 23, 2010 I CO : N60 40 54.436 N.., 2499450 29 flUS GM Cam: - 139 S 92862r I SW: 0401 Not 7 ND Ref Rotary Table (160.00 fl above Mean S. Lwel) Meg Dec: +18362' FS: 555118 nT Lon: W151 38 8 629 Eactkg: 21406025 ftUS Seale Fact 09999830245 Plan: 44-10 (P20)02 Sand Srvy Date: January 19,2010 -400 0 400 800 1200 1600 1200 1200 X4 1 M -10 (P20) 02 Sand ' rf 1 . ` 1'D I Lnr 800 800 -10PB1 current 400 400 A A 30" Conductor L 0 0 o End Cry 133)8" Csg II -400 a M- 10Ygt1D3: To -400 1n ' : Crv61100 . 1 7" Csg V and Cry V V -800 / -800 -1200 -1200 Cry 5/100 Tie -in Survey KOP Cry 5/100 -1600 - -1600 -400 0 400 800 1200 1600 :« W Scale = 1(in):400(ft) E »> • • . S chlumberger TRAVELING CYLINDER PLOT Client: Chevron NoGo Region EOU's based on: Well: M -10 Oriented EOU Dimension N Field Trading Bay Unit Structure: Steelhead N000 Region Anticollision rule used: 4 • Minor Risk - Separation Factor A — Date: January 23, 2010 lif it ,19: North 350 0 10 340 150 20 330 140. � 30 ` ' 130 320 � � 120 40 I °OS 110 �♦ 310 *,�, �i, 100. :` � `,% 50 11* ��, a ° 90 ` � �; ,,� 300 , ,- 80 ' 60 al AO 70 290 . W4 ♦' `ll 11 i 70 id 260 ,`,,� �, r4r v 30 .' ,,•, I kill I il 111 1 80 gill 270 se � -� 81111 1111111111111 so ill ►11�1;;00 9 99 �_, t% O O 7 5097 ° °w d '... � 260 , '� ' ° °� S 7777 5 9 4 ° °� � � � �,f,�� 100 ,, ` O °° e 6' ` Sa g° I T O .,. ° q o, ,, " � i afinsiii ft Ilk 250 °° , ,,,-./.., 5$ O ° v , • 110 38 4 , .. 240 - 5A 7 �, �� �,,, ° oA 0> 120 o 230 ' O 5569 m /' 1,i � , 130 '� _ 565 :" - _. 220 ' -.- 140 "'... .. ,gy \ 210 ' 150 . h 'S 200 1 190 180 170 -10 P B 1c current Well Ticks Type: MD on M -10 (P20) D2 Sand Calculation Method: Normal Plane Ring Interval: 10.00 ft Azimuth Interval: 10.00 deg Scale: 1 INCH = 50.00 ft • `. S chlumberger TRAVELING CYLINDER PLOT Client: Chevron NoGo Region EOU's based on: Well: M -10 Oriented EOU Dimension N Field: Trading Bay Unit Structure: Steelhead NoGo Region Anticollision rule used: Minor Risk - Separation Factor .• Ni Date: January 23, 2010 --- fiZtO North 350 0 10 340 a.M► I,!.,, 20 330 560 , 30 52. 6391 320 40 480 440 310A 400 004. 50 360 II 6 300 - 320 60 280 290 �� 240 Ai., \ 70 O ♦ 20 011111■1411,„,i lir • • . 2�b -0 Of/4k � .. �' 120 .�' �� 80 , Ira& „ �A 80 •,, ' 6 . ' ' - 0 40'� = ` — 270 90 63 rah � o min 5 * .e .1,� st 5,569 O Ov 26 � • c ' O 1, 100 0 ,T., `� 30 ti 041 : � O p fee , \: o0 0� 110 250 . . o ` ' . �� o a `\ o o os n � � � . 6 0 a \. M 03 9 639 O co 240 o° j o 1 20 . 6487 O 6ti 230 • 666 130 61 . 6 638 220 140 6��� 6 210 '� 150 613 - 211 16 -10PB1 current G -12 C 190 180 170 Well Ticks Type: MD on M -10 (P20) D2 Sand Calculation Method: Notmal Plane Ring Interval: 20.00 ft Azimuth Interval: 10.0 deg Scale: 1 INCH = 200.00 ft Steelhead M -10 • Summary of Drilling Hazards POST THIS NOTICE IN THE DOGHOUSE 17 -1 /2" Hole Section • Shallow gas sands will be encountered that have the potential to flow and cause a Toss of well control. All operations shall proceed with the necessary precautions to prevent a kick. Special attention is required in the following areas: 1. Monitor trip tank on each trip into and out of the hole. 2. Carefully monitor PVT for gain / loss. 3. Have LCM material onboard and ready for use in the event significant losses occur. 4. Minimize surge and swab pressures while tripping. 5. Review cement spacers and washes to ensure the well is not under balanced at any point during cementing operations. 6. Perform diverter drills until the crews are familiar with the procedure. • M -10 wellbore passes all major risk to surrounding wellbores. Record annulus pressures on surrounding well (M -19, M -14, M -15 and M -13) prior to spud and monitor during the drilling of the surface hole section. 9 1 /4" Hole Sections • Shallow gas sands will be encountered that have the potential to flow and cause a loss of well control. All operations shall proceed with the necessary precautions to prevent a kick. Special attention is required in the following areas: 1. Monitor trip tank on each trip into and out of the hole. 2. Carefully monitor PVT for gain / loss. 3. Have LCM material onboard and ready for use in the event significant losses occur. 4. Minimize surge and swab pressures while tripping. 5. Review cement spacers and washes to ensure the well is not under balanced at any point during cementing operations. 6 1/8" Hole Section • Significantly under pressured reservoir sands will be encountered A heightened awareness of kick detection, pre -job planning and trip tank calibration will be essential while drilling /trip ping the intermediate interval. • Loss circulation is considered to be a major risk due to the depleted reservoir sands which will be encountered. Loss circulation materials will be readily available for adding to the mud system should significant losses be encountered. Consult the Lost Circulation Decision Tree regarding LCM treatments and procedures • Differential sticking is a considerable risk while drilling these depleted sands. Keep the drill string moving whenever possible. • Numerous coals will be drilled through. Unocal coal drilling strategy; limiting the amount of coal drilled ( <10') prior to back reaming should be followed. HYDROGEN SULFIDE - H2S • Steelhead is designated as an H2S drill site. Standard Operating Procedures for H2S precautions should be followed at all times. Version 1.0 Rigsite Hazards and Contingencies Calculation & Casing Design Factors tO C hevron Steelhead Platform M -10 Cook Inlet, Alaska WELL: M -10 FIELD: Trading Bay Field DATE: 19- Jan -10 DESIGN BY: Tim Flynn Sect. 2 9 1/4" hole MUD WT. 9.20 PPG MASP= 1556 psi Production Mode TENSION MINIMUM COLLAPSE COLLAPSE • WEIGHT TOP OF STRENGTH PRESS @ RESIST. MINIMUM DESCRIPTION W/O BF SECTION TENSION WORST CASE BOTTOM w/o TENSION WORST CASE MASP YIELD WORST CASE SECTION CASING BOTTOM TOP LENGTH Wf. GRADE THREAD LBS LBS 1000 LBS SF TENSION PSI* PSI SF COLL. PSI ** PSI SF BURST 2 7" 5,759 0 5759 26 L -80 Hyd 149,734 149,734 604 4.03 1,950 5,410 2.77 1,556 7,240 4.65 TVD 4,535 * Collapse pressure is calculated; Normal Pressure Fluid Gradient for external stress (.440 psi/ft) and the casing evacuated for the internal stress (.1 psi/ft) • ** See attached sheet for calculation of MASP • Chevron Steelhead Platform %O. Well M -10 Drilling Program 2010 M -10 Maximum Anticipated Surface Pressure Calculations 6 1/8" Hole Section, 4" wire wrapped screen OH completion • The 6 1/8" production hole section will be drilled from 4535' TVD to 4550' TVD. MASP will be bottom hole pore pressure Tess a gas gradient to surface BHP MASP The maximum predicted pore pressure at TD = 8.5 ppg. Pore pressure = 4550 x 8.5 x 0.052 = 2011.1 psig Correcting for an evacuated wellbore = 2011.1 - (4550 *0.1) = 1556.1 psig MASP = 1556.1 psig Chevron Steelhead Platform Well M -10 Drilling Program 2010 M -10 Cement Calculations Current Well Condition • 13 3/8" 68 ppf, L -80, BTC surface casing cemented at 1402 MD in 2 stages. Stage 1: 152 bbls 13.2 ppg lead G and 136 bbls 13.6 -14.0 ppg tail G. Good rtns. Stage 2: 260 bbls 13.2 ppg lead G. Good rtns and cement to surface Proposed Intermediate Casing L 10 7 ", 26 ppf, Intermediate Casing in 9'/4" Hole, Stage 1 i S • Ls 15 Cement from section TD at 5759' to 4750' (Stage Collar). OH Volume w/45% excess = (5759'- 4750) *0.0355 *1.45 = 51.9 bbls Shoe Track Volume = 80 *0.0383 = 3.1 bbls Total Volume, Stage 1 = 51.9 + 3.1 = 55.0 bbls of 14.0 ppg Class G Slurry / g � a�l1 • �= r C c S � CI Lel0,1 ��or)t z 7 ", 26 ppf, Intermediate Casing in 9 1 /4" Hole, Stage 2 5 , G IS Cement from stage collar at 4750' to surface. OH Volume w/45% excess = (4750 -1401) *0.0355 *1.45 = 172.4 bbls + f Cased Hole Volume = (1401 *0.1021 = 143.0 bbls ✓ C t 22- U 2 ` tLt Total Volume, Stage 2 = 172.4 + 143.0 bbls = 315.4 bbls of 13.2 ppg Class G Slurry • • 40 Formation Integrity Test (FIT) and Leak-Off Test (LOT) Procedures Note that the terms used in the procedures and the spreadsheet of FIT/LOT results are defined as follows: • Formation Integrity Test (FIT) - Formation is tested to a pre-determined equivalent mud weight. • Leak-Off Test (LOT) - Pressure is exerted against the formation until fluid begins to discernibly pump away. Pressure at which this first occurs is the leak-off point. • LOT Limit - 16.0 ppg EMW for all surface casing shoe tests; determined from previous experience with formation breakdown problems by attempting higher leak-offs. • Open Hole LOTs (OH LOTs)- Leak-off tests performed with open hole from the casing shoe to some point above the target reservoir. Generally done when leak-off is required but could not be achieved just below the casing shoe; or where weaker formations are suspected above the target reservoir but below the casing shoe, and assurance is required of being able to achieve estimated mud weight. Procedure for FIT: 1. Drill 20' of new hole below the casing shoe. 2. Circulate the hole to establish a uniform mud density throughout the system. P/U into the shoe. 3. Close the blowout preventer (ram or annular). 4. Pump down the drill stem at 1/4 to 1/2 bpm. 5. On a graph with the recent casing test already shown, plot the fluid pumped (volume or strokes) vs. drillpipe pressure until appropriate surface pressure is achieved for FIT at shoe. 6. Shut down at required surface pressure. Hold for a minimum 10 minutes or until the pressure stabilizes, Record time vs. pressure in 1-minute intervals. 7. Bleed the pressure off and record the fluid volume recovered. The pre-determined surface pressure for each formation integrity test is based on achieving an EMW at least 1.0 ppg higher than the estimated reservoir pressure, and allowing for an appropriate amount of kick tolerance in case well control measures are required. Formation integrity tests are conducted on all casing shoes with the exception of some surface casing situations. Where annular pumping will be done on a well, the formation below the surface shoe is taken to leak-off. This ensures that future disposal fluids can pumped away without risk of damage to the surface shoe. If two attempts at establishing leak-off at the shoe are unsuccessful (using 16.0 ppg EMW LOT limit per definition above), then an open-hole LOT is performed. Where required, the LOT is performed in the same fashion as the formation integrity test, Instead of stopping at a pre-determined point, surface pressure is increased until the formation begins to take fluid; at this point the pressure will continue to rise, but at a slower rate. The system is shut in and pressure monitored as with an FIT. • • -Now ° 'wit ik G i i ._ i I -I /G' ,0psI i I H 2 A I .P i STACK LEVEL II 1 u u INSPECTION ®LIFTING DEVICE ii r 0111.i. (ROTATED FOR CLARITY) - 2. II *,S)�I,g_ I, I _ I1 ill_ "III/, — I 1 1 I. .1 I — "eII. — 20-3/6 HVDRIL r" DOUBLE GATE RAMS PICKING POINT i mi � l i —II!'U �I. ��I • HII_ _ RAMS & CENTER OF GRAVITY 1111_= is�� I RUBBERS O SC a 20' -6" HVD LINE CHOKE LINE ( , Y I !` J v q , MUD CROSS 3,0000.0 HUB 0 MUD CROSS 1�i 1 r %� l � ll� %z"I) x 20-3/4 3,0000.1 HUB a = 203/4" 3,000ps1 HYDRIL _ 111111 _� / SINGLE GATE RAM 6' �� O 16" DIVERTER LINE IIMI1.1N•i[CAI � 16" DIVERTER LINE O 20-3/4 3,000061 r DNERTER SPOOL w/ gi�•� mimed + (2) NT2 CONNECTOR XO \,).� . ., ,. " `� 6 (2) 16' ANSI 600 D__ -- _ - - - - -_ i � �m `� i� DIVERTER VALVES 1. e 203/4'3.000P I I "•■..rt NT2 CONNECTOR I 0 STACK LEVEL II INSPECTION O2 RAMS & RUBBERS O MUD CROSS 0 i O4 DIVERTER SPOOLS 5 RISER & NT2 CONNECTIONS 05 RISER & NT2 CONNECTIONS 41' -5" 0 LIFTING DEVICE 203/4 3,000psi 7. RISER I L I ■ , 203/0 6 II ', RISER VETCO 203/0' III M E L NT2 CONNECTOR j -1 VETCO NT2 HEAD 1� h evran sTEELFEAD PI ATFOIIII 6' ANSI 602 RT COQ N!r ALMA 3M BOP STACK-UP NarELEIER aooe wren In • MIL O . CHOKE MANIFOLD • • • - , TO GAS BUSTER TO DERRICK VENT TO SHALE SHAKERS • A •I. • ma b 1 • NIB= MINIM MEMNON . t it A) . � _ye _ I � .. --- -_._. - - - -- 1• t m n • __ III 1111 N llR� .�J•S riT j - 40 11 ...wI I� `fir - r. m Alipub -, t 111."%i 1 -...' /IV a nki u 1741 \-■:: ito 7 !. 11.4111101" r r •' I i \l/ ii l ∎� cI on � Ir III SVACO `� CHOKE LINE A•i SECTION AA * ALL VALVES IN FLOW PATH ARE 3 -1/16' 5000 PSI CAMERON GATE TYPE • • TRANSMITTAL LETTER CHECKLIST WELL NAME TRADING BAY UNIT M -10 PTD# 2091540 X Development Service Exploratory Stratigraphic Test Non - Conventional Well FIELD: MCARTHUR RIVER POOL: MIDDLE KENAI GAS POOL 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 , Permit No. , (If last two digits in API No. . Production / injection should API number are continue to be reported as a function of the original API number between 60 -69) stated above. PILOT HOLE In accordance with 20 AAC 25.005(f), all records, data and logs acquired for the pilot hole must be clearly differentiated in both q p Y 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. Should conventional core be acquired in this well, representative chip samples from each foot of core must be submitted to the Commission in accordance with 20 AAC 25.071. Non - Conventional Please note the following special condition of this permit: Well production or production testing of coal bed methane is not allowed for (name of well) until after (Company Name) has designed and implemented a water well testing program to provide baseline data on water quality and quantity. (Company Name) must contact the Commission to obtain advance approval of such water well testing program. Rev: 2/1/2010 • WELL PERMIT CHECKLIST Field & Pool MCARTHUR RIVER, MIDKENAI GAS - 520550 Well Name: TRADING BAY UNIT M-10 Prograrn DEV Well bore seg El PTD#: 2091540 Company UNION OIL CO OF CALIFORNIA Initial Class/Type DEV / 1-GAS GeoArea 820 Unit 12070 On/Off Shore 0'00_1. Annular Disposal Eli Administration 1 _Permit_fee_attac_hed NA 2 _Lease number appropriate Yes Only affected lease is_ACIL 1 azao, whiohbontains the entire wellbore. 3 _Unique well name and number Yes 4 _Well Jocated in a defined pool Yes MCARTHUR RIVER, MIDKENAI GAS - 52Q550, governed by QQ 228 and amended by 00 228.02 5 _Well Jocated proper distance from drilling unit boundary Yes Rule 1 of CO 228 established 10-acre drilling units for the pool at the 0,1 sand, which lies Whet vertical 6 Well Jocated_ prober distance from other wells Yes mid-point of the pool because of the lenticular nature of the reservoir sands. Drilling_ within the D2 sand 7 Sufficient acreage av_allableln_d_riiling unit Yes will not conform tothese requirements. _Rule 3_ of CO 228 allows the spacing exceptionto be app roved 8 if_deviated, is wellbore plat included Yes administratively. 9 _Operator only affected _party Yes 10 _Operator has appropriate bond inforce Yes 11 _Permit_can be Issued without conservation : order Yes Appr Date 12 _Permit_can be_Issued without administrative_approval Yes FD 1/21/2010 13 Can permit be approved before_15-day_walt Yes S 14 _Well Jocated within area and strata authorized_by _Injection _Order # (put IO# in_ comments) LE or NA 15 All wells_within 1/4 mile area cif review identlfled_(For service, well only) NA 16 _Pre-produced.injector_ duration of pre-production less 3months (For service wellonly) NA 17 _Nonconvem_gas conforms to AS31,05,030(j,1_.A),(j.2A-D) NA D2 sand interval is open In M-03, about_400' away; operator does not bellev_e itcontributes toproduction. 18 Conductor string provided NA Exi sting. Engineering 19 Surface casing .protects NJ known USDV_VS NA Exi sting. 20 _C_MTvolsclequate to_ciroulate_o_n_conductor_& surf csg NA 21 _C_MT_vol_adequate to_tie-in longstring to surf osg Yes 22 _C.MT_will cover all known productive horizons No Production screen, 23 Casing ciesigneadequate for 0, T, _B_& permafrost Yes Adequate safety factors, 24 Adequate tankage or_reserve pit Yes Steelhead rig.. 25 lf_a_re-drill, has al 0-403 forabandonment been approved NA New well. 26 Adequate wellbore separation_proposecl No Spacing exception required. 27 tf_diverter required,_does_itrneet regulations NA Sidetrack. Appr D 28 _Drilling fLuldprogramschematIc & equip_listadequate Yes Max MW .9.3. pdg. WGA 1/22/2010 29 _BOPEs,sio they meet regulation N_o 2k_annular; 3k rams, 30 _BOPEpress rating_appropriate;.test to..(put psig in comments) Yes MASP 1556 pai;_teSt annularto 1000 psi, rams to _3000_psi, • 31 _Choke.manifold_complies w/API RP-53 (May 84) Yes 51(manifold. 32 _Work will oc_cur_without Op_erationshutdciwn Yes 33 is presence_of H2S. gas probable Yes H2S measures required. 34 _Mechanical condition of Wells _within AO R Verified_ (For_servica well only) NA 35 _Permit_can be issued W/O hydrogen sulfide measures No Steelhead is a designated H23 site, Measures are required. Geology 36 _D_atapresentad.on potential overpressure zoos Yes Significant under pressure is expected.. Drilling hazards sumrnarydiscusses Mitigation measures, Appr Date 37 _Seismic analysis of shallow gas zones NA Development well, but drilling hazards summit)/ _discu.ssealikelibcod of_shallow gas_ancl mitigation SFD 1/21/2010 38 _Seabed condition_survey_ (if off-shore) NA measures. 39 Contact name/phone_forw_eekly_progress reports.lexploratory only) NA Geologic Engineering Re-issue: originally planned as horizontal producer from the D3 sand with a pilot hole. The pilot hole indicated the 03 sand was Co r Commissioner: '- loner Date: Date Date t f ii wet, so the horizontal wellbore will now be drilled in the overlying D2 sand. Per 20 AAC 25.015(b)(1), a new permit application is ■9 >__..,, 2-3_/ ,,„y .....?,/ 0 required because drilling within the D2 sand requires a spacing exception ( D2 is open to the nearby M-03 wellbore, but the Aa llililthilli operator does not believe that D2 is contributing to M-03 production). Rule 3 of CO 228 allows this spacing exception to be 2D Q Page 1 of 1 Aubert, Winton G (DOA) From: Flynn, Tim [ASRC] [Tim.Flynn @chevron -com] Sent: Monday, January 18, 2010 9:35 AM To: Aubert, Winton G (DOA) Subject: M -10 path forward Attachments: M -10 MD Pilot hole.pdf Winton I wanted to give you an update on our progress on M -10. Currently on M -10 we are POOH to pick up a cement stinger and plug back the pilot. We have successfully drilled through the target sands (D -2 and D -3B) and have decided to drill a horizontal in the D -2 based on MWD logs. The following is our planned procedure for abandoning the pilot hole and preparing the wellbore for a horizontal in the 0-2. The D -2 horizontal will TD 147'MD away from the permitted D -3B horizontal TD. 1. POOH L/D RSS /Nuke tools 2. RIH to TD w/ 3 1/2" cement stinger 3. Pump cement balance plugs up from 6900' MD to 4480' MD 4. Trip in with 9 /4 "sidefrack assembly, kickoff cement plug at 4680' MD 5. Drill to TD and land in D -2 at 5455' MD. POOH 6. Run and cement 7" casing up to ML in 2 stages. 7. Redress BOP's w/ 5" rams and test 250/1000/3000 psi. 8. Trip in hole with 6 1/8' bit, drill stage tool 9. Drill Float collar, Test Casing to 3000 psi for 30 min. 10. Displace well to filtered inlet water, POOH 11. Trip in hole with 7" casing scrapers and magnets with 6 1/8' bit, POOH 12. Run in hole on wireline and log with USIT -CCL 13. MU 6 1/8" directional BHA (Rotary Steerable) and TIH 14. Change over mud from FIW to 9.0 ppg Baru Drill -N fluid, Drill out float shoe 15. Directionally drill to section TD (Geo-Steer) at 7293'MD. 16. Short trip to shoe, TIH swap drilling fluid over to 6% KCL w/ polymer, POOH 17. TIH w/ screen assembly, perform filter cake removal, pull service string out of screen, set packer, POOH 18. Run 3 % tubing (GLM's,SSSV,CIS). Space out and land tubing. Test hanger void. 19. Install BPV and ND BOP. 20. NU tree and test tree to 5000 psi. 21. RDMO Steelhead rig. 1 can be contacted anytime at the numbers below if you have questions or concerns. Thank you Tim Flynn Operations Drilling Engineer Chevron North America Exploration and Production 3800 Centerpoint Drive, Suite 100 Anchorage, AK 99503 907 -263 -7824 phone 907 - 317 -5504 cell 1/19/2010 • 1 / - ` I ' t, 1 SEAN PARNELL, GOVERNOR L T p Ike a. _,i' L, L I - 6 ALASKA OIL AND GAS i 333 W. 7th AVENUE, SUITE 100 CONSERVATION COMMISSION i ANCHORAGE, ALASKA 99501 -3539 07) 279-1433 Mr. Timothy C. Brandenburg / FAX (907) 276 -7542 Drilling Manager Union Oil Company of California P.O. Box 196247 Anchorage, SK 99519 Re: McArthur River Field, Middle Kenai Gas Pool, Trading Bay Unit M -10 Union Oil Company of California Permit No: 209 -154 Surface Location: 1052' FNL, 464 FWL, SEC. 33, T9N, R13W, SSM Bottomhole Location: 130' FSL, 1916' FWL, SEC. 28, T9N, R13W, SSM Dear Mr. Brandenburg: Enclosed is the approved application for permit to drill the above referenced development well. In accordance with 20 AAC 25.005(f), all records, data and logs acquired for the pilot hold must be clearly differentiated in both well name (Trading Bay Unit M -10 PH) and API number (50- 733 - 205- 88 -70) from records, data and logs acquired for well Trading Bay Unit M -10. The permit is approved subject to full compliance with 20 AAC 25.055. 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, 0, ---- Daniel T. Seamount f / Chair DATED this ` � day � of December, 2009 cc: Department of Fish & Game, Habitat Section w/o encl. Department of Environmental Conservation w/o encl. 1 ' Gcl STATE OF ALASKA �, i t /Loot ALA. OIL AND GAS CONSERVATION COMIVION NOV 2 4 2009 PERMIT TO DRILL ' ` ' , : - I 20 AAC 25.005 Alaska Oil & Gas Cons. Comae Type of Work: 1b. Current Well Class: Exploratory Development Oil 1c. Specify if b pp ro ib °0 "r " "1� 1a. T YP p rY ❑ P ❑ p fY � p P Drill El • Redrill ❑ Stratigraphic Test ❑ Service El Development Gas . El Coalbed Methane ❑ Oah drates `[ A Re -entry ❑ Multiple Zone ❑ Single Zone ❑ Shale Gas ❑ 2. Operator Name: 5. Bond: Blanket p . Single Well ❑ 11. Well Name and Number: Union Oil Company of California Bond No. 086S103515406BCM • Tradng Bay Unit M -10 3. Address: 6. Proposed Depth: 12. Field /Pool(s): PO Box 196247, Anchorage, AK 99519 MD: 7600 TVD: 4750 McArthur River Field 4a. Location of Well (Governmental Section): 7. ro e esignation: Surface: 1052 FNL, 464' FWL, Sec 33, T9N, R13W, SSM • A - ADL 18730 /2{, /e .. kai'z t (. � rr• / , „dn fz•I. exi Top of Productive Horizon: 8. Land Use Permit: 13. Approximate Spud Date: 1434' FNL, 1531' FWL, Sec 33, T9N, R13W, SSM NA 12/15/2009 Total Depth: 9. Acres in Property: 14. Distance to Nearest 130' FSL, 1916' FWL, Sec 28, T9N, R13W, SSM • 5116, 3840 Property: > 6000' .. 4b. Location of Well (State Base Plane Coordinates): 10. KB Elevation 15. Distance to Nearest Well Surface: x- 214080 • y- 2499450 • Zoi 4 (Height above GL): • 160 AMSL feet Within Pool: 2831 (Ill -17) 16. Deviated wells: Kickoff depth: SS „€ et . 17. Maximum Anticipated Pressures in psig (see 20 AAC 25.035) Maximum Hole Angle: lZ §0 - degrees Downhole: 2730 • Surface: 2109 ' 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) Cond 28 -32 1/2 - 1" WT X -56 Weld 390 0 0 480 480 Driven 17 1/2" 13 3/8" 68 L -80 BTC 1401 0 0 1401 1374 3235 ft3 in 2 stages 9 1/4" 7" 26 L -80 TBD 5772 0 0 5772 4681 1904 ft3 in 2 stage 19. PRESENT WELL CONDITION SUMMARY (To be completed for Redrill and Re -Entry Operations) Total Depth MD (ft): Total Depth TVD (ft): Plugs (measured): Effect. Depth MD (ft): Effect. Depth TVD (ft): Junk (measured): Casing Length Size Cement Volume MD TVD Conductor /Structural 401.00 28 -32 Driven 470 470 Surface Intermediate Production Liner _ Perforation Depth MD (ft): NA Perforation Depth TVD (ft): NA 20. Attachments: Filing Fee ❑ BOP Sketch 0 Drilling Program IN Time v. Depth Plot ❑ Shallow Hazard Analysis ❑ Property Plat El Diverter Sketch El Seabed Report ❑ Drilling Fluid Program El 20 AAC 25.050 requirements 0 21. Verbal Approval: Commission Representative: Date 11/23/2009 22. I hereby certify that the foregoing is true and correct. Contact Tim Flynn, 907 - 263 -7824 Printed Name Timothy Brandenburg l ' ' Title Drilling Manager . ° Signature - / ' `- ' Phone Date 1 (— 2. •- c:J / ommission Use Only Permit to Drill // //// API Number: d' \ Permit Approv See cover letter for other Number: (177 Y CJ 50- 733 - 2-(....)6E8 — CO Date: / Q1Q? requirements. Conditions of approval : If box is checked, well may not be used to explore for, test, or produce coalbed methane, gas ydrates, or gas contained in shales: Other: lest A.wI'• -k.( BOP[— tb 1000 e cc . Samples req'd: Yes❑ o[ ' Mud log req'd: Yes❑ o Te St YG2 '$ .h PE to Savo prt . H measures: Yes N0 ❑ Directional svy req'd: Yelle P 2oA4C. is.o35 (k) (1), o 1+e✓n.a. *e_ ToPE 4 &pprove Per zo /WWC. Z -. °35 ( (, Z), di f e -w v e K.t Cute rt.e V a fri A,vt.c c.. is a- f p ro ve-a- / APPROVED BY THE COMMISSION / 2 DATE: COMMISSIONER Form 10 -401 Revised 12/2005 ORIGINAL Submit in Duplicate A;- > j2 • (T -'1 ■ r • 1 Chevron Timothy C Brandenburg Union Oil Company of California 1010 Drilling Manager P.O. Box 196427 Anchorage, AK 99519 -6247 %. Tel 907 263 7657 Fax 907 263 7884 Email brandenburgt @chevron.com 11/24/09 Commissioner RECEIVED Alaska Oil & Gas Conservation Commission 333 W. 7 Avenue f 4 ()9 Anchorage, Alaska 99501 Alaska Oil & Ga s Co n s, i'!! Commission Re: Steelhead Platform, Trading Bay Unit M -10 / Anchorage Dear Commissioner, Enclosed for review and approval is the application for the Permit to Drill the Trading Bay Unit M -10 well from the Steelhead Platform. Drilling operations are expected to commence approximately November 3, . ;009 depending on the progress of other ongoing projects. Per Conservation Order 228, Trading Bay Unit requires 10 acre . - •ng. There are no wells producing or capa f production from the target strata of TBU / 1 within 745' of the planned wellpath of TBU M 0 Therefore, a spacing exemption is not requir - • 0 drill or produce TBU M -10. The 9 %" intermediate hole will have a pilot hole drilled below the target sand to evaluate future productive horizons. The MASP has been calculated to the deepest expected TVD of the pilot hole. Based on the well design of the planned horizontal section being landed shallower than the pilot hole, no FITwill be performed after drilling out of the 7" casing. In accordance with 20 AAC 25.005 (c)(4)(A -C)... (A) MASP calculations are attached for review. (B) The Grayling Gas Sands are potentially gas bearing throughout the section. Potential target reservoirs and their predicted pore pressures are indicated in the attached M -10 Well Design Summary. (C) Due to ongoing production operations in this field, sub - normally pressured sands occur in multiple places. Lost circulation and differential sticking are potential problems. Conventional solutions such as LCM and good drilling practice are intended to , ameliorate the problems. I An exception to 20 AAC 25.035 (c)(1)(B) is requested. a35 L \ The diverter system at Steelhead includes two 16" diameter diverter lines. The surface hole section of M -10 is planned to be drilled with a 17 %" bit. / Union Oil Company of California / A Chevron Company Page 1 of 2 • • An exception to 20 AAC 25.035 (e)(3) is requested. ✓ ( L i o The BOP stack for Steelhead includes 20 3 /" 3M ram preventers and a 21 %4" 2M annular preventer. The MASP for the subject well, when calculated in the most pessimistic manner, exceeds the rated working pressure of the annular preventer. The annular preventer will not be used in a secondary well control event in excess of its rated working pressure. Union Oil Company also requests that the test pressure for the annular be established at 1000 - psi. The annular preventer has been previously tested to 2000 psi. Repeated testing to 2000 psi will degrade the annular element. Pursuant to 20 AAC 25.005 (c)(14)... Qualified drilling waste will be discharged in accordance with NPDES permit AKG -31 -5000 j which became effective 7/2/2007 and expires 7/2/2012. At this time, Union Oil Company does notjntend to apply for annular disposal approval. The remaining requirements of 20 AAC 25.005 are attached for review or currently on file with the Commission. If you have any questions, please don't hesitate to contact myself or Tim Flynn at 907 - 263 -7824. Sincerely, ✓„ f Timothy C. Brandenburg Drilling Manager Attachments: Form 10 -401 in Duplicate M -10 Cementing Calculations M -10 Well Design Summary M -10 Casing Design M -10 Summary Drilling Procedure M -10 MASP Calculations M -10 Summary Mud Program M -10 FIT / LOT Procedure M -10 Planned Well Sketch M -10 Spider Plots M -10 Planned Well Trajectory M -10 Combo BOP /Diverter Schematic M -10 Drilling Hazards Notice M -10 Choke Manifold Schematic M -10 Plat Cc: File Union Oil Company of California / A Chevron Company Page 2 of 2 Chevron • Steelhead Platform Well M -10 Well Design Summary M -10 Well Design Summary Steelhead M -10 is a development well drilled from slot A1-7. The well penetrates multiple primary and secondary Grayling Gas Sand targets from the SZ1 1 to TD 100+ ft and below D -6 GGS. M -10 is designed as a "horizontal ", well reaching 89 degrees inclination in the D3B or D -2 target sand and reaching a total depth of 7600' MD, 4750' TVD. Basic Well Information Platform: Steelhead Well Name: M -10 Estimated Spud Date: 12/28/09 Field: McArthur River Productive Horizon: Grayling Gas Sands PTD: TBD Total Depth: 7600' MD, 4750' TVD Slot: Slot Al -7, SW Leg Surface Location: 1052' FNL, 464' FWL, Sec 33, T9N, R13W SSM X= 214080, Y= 2499450, NAD27, ASP, Zone 4 Planned BHL: 130' FSL, 1916' FWL, Sec 28, T9N, R13W, SSM Original KB Elevation: 160' AMSL KB to THF: TBD Casing and Tubing Program Hole Tube t Weight rade Conn Length MD TVD MD/TVD Size (in) O D ' (Ibs / ft) G (ft) (ft) (ft) (in) Driven 28 -32 X -56 Weld 3 BF 470 17 1/2 13 3/8 68 L -80 BTC r 163 BF 1401/1374 9'/4" 7 26 L -80 DWCSR 5772 BF 5772/4681 6 1/8" 4'/2 9.5 Screen SLHT 1613 5744/4516 7357/4750 TBG 3'/2 9.2 L -80 TC -II TBD THF TBD 11/23/2009 Page 1 of 3 Chevron 1%0 Steelhead Platform Well M -10 1%0 Well Design Summary Well Control Summary Hole Section Equipment Test Pressure (psi) 17'/2" 21 1/4 2M Diverter c/w 2 ea 16" 600 psi Diverter Function Valves* 21 1/4 2M Annular, 20 3/4 3M Double Gate, 8'/2" 20 3/ 3M Mud Cross, 20 3/4 3M Single Gate 250/3000 3 1/8 5M Choke Manifold* (Annular 1000 psi) 21 2M Annular, 20 3/4 3M Double Gate, 250/3000 6 1/8" 20 3/4 3M Mud Cross, 20 3/4 3M Single Gate 3 1/8 5M Choke Manifold* (Annular i000 psi) *Schematics of the well control equipment are attached for reference Anti - Collision Evaluation Summary i There are no close approach wells for M -10. With the exception of several wells that are behind the conductor, all other nearby wells pass major risk criteria. Collision risk will be mitigated procedurally by monitoring annular pressures of adjacent wellbores and placing an observer in the wellhead room to listen for indications of a collision. A Gyro MWD tool will be used to accurately survey the . welibore in the surface hole while drilling. 11/23/2009 Page 2 of 3 Chevron 1 WI Steelhead Platform Well M -10 %. Well Design Summary Formation Integrity Testing Test Point, 20' Projected Projected Test Projected Below... Depth Test Type (EMW ppg) Casing Test (TVD) (PSI) 13 3/8" Csg Shoe 1374 FIT 12.8 1500 Mud Program Summary Section Depth Mud Type Density Viscosity PV YP API FL (MD ft) (ppg) (sec) 17 1 /2" Surf. 0 -1401 Pre -Hyd Gel 9.0 -9 60 -85 10 -28 25 -35 <12 8 1 /2" Prod. 6608 -12462 KCL /GEM /Pmr 9.2 9. 40 -53 6 -15 13 -20 <_6 6 1/8" Prod. 5744 -7357 KCL /BaraDrilIN 8.8 - .2 40 -53 11 -18 18 -25 <_6 Cementing Summary See Attachments Formation Markers Target Top TVD /SS Depths Measured Pore Pressure EMW Requirement Depth (RKB) V8 (PSI) (ppg RKB) SZ1 1390 1600 602 8.33 SZ12 1512 1745 643 8.18 1 SZ17 1945 2481 304 3.01 SZ22 2320 2936 304 2.52 A2 2538 3210 327 2.48 ° C1 3730 4515 260 1.34 • D2 4353 5224 394 1.74 . D3BST 4522 6015 604 2.57 D6 4823 6519 309 1.23 D16 6020 10047 650 2.08 11/23/2009 Page 3 of 3 Chevron • • 4111. Steelhead Platform Well M -10 Basic Drilling Procedure M -10 Basic Drilling Procedure 1. RU Steelhead rig over slot Al -07. 2. Install A section wellhead and test. 3. Install 21 1 /4 2M /20 3/4 3M combo diverter /BOP stack and dual 16" diverter lines. Function test diverter per AOGCC requirements. 4. MU 17 1 /2" bit and clean out conductor to 480'. 5. MU 17'/2" directional BHA and drill to 1401'MD' taking gyro surveys as necessary. 6. MU jet wash tool and wash out conductor to 470'. 7. Run and cement 13 3/8" casing to surface in 2 stages utilizing an ECP stage collar. 8. Install 13 5/8 multi bowl wellhead stem. NU BOP stack. Install blind flanges on diverter outlets. Install 7" rams. Test stack to 250/1000/3000. 9. MU 12.25" bit and drill out stage tool. T s oasing to 1500 psi. 10. Drill out shoe track and perform FIT to ppg EMW. 11. Trip. MU directional BHA w/ 9 1/4" bit, TIH 12. Directionally drill to 6900'MD. 13. Place HW pill on bottom for casing to be cemented off bottom in the target sand. 14. POOH L/D RSS /Nuke tools ' / 15. Run and cement 7" casing from target sand up to ML in 2 stages. 16. Redress BOP's w/ 5" rams and test 250/1000300 si. 17. RIH with 6 1/8" mill tooth, Drill out stage collar, Test 7" casing to 18. Drill shoe track and trip in to bottom 19. Circulate pill OOH, POOH 20. RIH to TD w/ 3 1/2" cement stinger 21. Pump cement balance plug 200' MD up inside 7" casing. 22. POOH, L/D stinger, MU 6 1/8" directional BHA and drill out. 23. Change over mud from Gem to 8.8 ppg Bara Drill -N fluid 24. Directionally drill to section TD (Geo- Steer) at 7600'MD. 25. POOH L/D Directional tools, TIH with bit and cleanout BHA to TD 26. Swap drilling fluid over to completion fluid, POOH 27. TIH w/ screen assembly, perform filter cake removal, pull service string out of screen, set packer, POOH 28. Run 3 1 /2 tubing (GLM's,SSSV,CIS). Space out and land tubing. Test hanger void. 29. Install BPV and ND BOP. 30. NU tree and test tree to 5000 psi. / 31. RDMO Steelhead rig. 11/23/2009 Page 1 of 1 Steelhead M -10 Summary of Drilling Hazards POST THIS NOTICE IN THE DOGHOUSE 17 -1/2" Hole Section • Shallow gas sands will be encountered that have the potential to flow and cause a Toss of well ' control. All operations shall proceed with the necessary precautions to prevent a kick. Special attention is required in the following areas: 1. Monitor trip tank on each trip into and out of the hole. 2. Carefully monitor PVT for gain / loss. 3. Have LCM material onboard and ready for use in the event significant losses occur. 4. Minimize surge and swab pressures while tripping. 5. Review cement spacers and washes to ensure the well is not under balanced at any point during cementing operations. 6. Perform diverter drills until the crews are familiar with the procedure. • M -10 wellbore passes all major risk to surrounding wellbores. Record annulus pressures on surrounding well (M -19, M -14, M -15 and M -13) prior to spud and monitor during the drilling of the surface hole section. 9 1/4" Hole Sections • Shallow gas sands will be encountered that have the potential to flow and cause a loss of well ' control. All operations shall proceed with the necessary precautions to prevent a kick. Special attention is required in the following areas: 1. Monitor trip tank on each trip into and out of the hole. 2. Carefully monitor PVT for gain / loss. 3. Have LCM material onboard and ready for use in the event significant losses occur. 4. Minimize surge and swab pressures while tripping. 5. Review cement spacers and washes to ensure the well is not under balanced at any point during cementing operations. 6 1/8" Hole Section • Significantly under pressured reservoir sands will be encountered A heightened awareness of kick detection, pre -job planning and trip tank calibration will be essential while drilling /trip ping the intermediate interval. • Loss circulation is considered to be a major risk due to the depleted reservoir sands which will be encountered. Loss circulation materials will be readily available for adding to the mud system should significant losses be encountered. Consult the Lost Circulation Decision Tree regarding LCM treatments and procedures • Differential sticking is a considerable risk while drilling these depleted sands. Keep the drill string moving whenever possible. • Numerous coals will be drilled through. Unocal coal drilling strategy; limiting the amount of coal drilled ( <10') prior to back reaming should be followed. HYDROGEN SULFIDE - H2S • Steelhead is designated as an H2S drill site. Standard Operating Procedures for H2S precautions should be followed at all times. Version 1.0 Rigsite Hazards and Contingencies BAROID FLUID SERVICES • O era CHEVRON - MID - CONTINENT P EBIZ v 1.1 Well Name M -10 Objective and Methods Steelhead Producer Introduction: The following mud program was prepared for a deviated well on the Steelhead platform in the Cook Inlet, Alaska. The well will be spudded with a pre- hydrated gel drilling fluid and the 17-%" interval will then be drilled to section TD at 1,401' MD where 13 -3/8" casing will be run and cemented. The 9 -1/4" pilot hole will be drilled to 6,900'. A balanced heavy weight mud will be spotted in the open hole from 6,100' to 6,900'. The 7" casing will be ran and cemented at 6,100'. The 7" casing will be drilled out and some /all of the heavy mud will circulated out of the hole. The 9 -1/4" Pilot hole will be abandoned with cement plugs at the horizontal kickoff depth. The 6 -1/8" production horizontal will be drilled to TD at 7,620' MD. A 4 -'h" wire - wrapped screen, open hole completion will be ran. 6% KCI brine and corrosion inhibitor will be required for completion. Spud the well with a FW AQUAGEL mud at 9.0 ppg. The mud weight will then be held in the 9.0 to 9.3 ppg mud weight range to the surface hole TD unless hole conditions dictate otherwise. Our primary focus for surface hole drilling operations will be adequate mud weight for well control and sufficient mud viscosity for efficient hole cleaning. Before cementing the surface casing, ensure the mud weight is 9.5 ppg. LCM will be added to help strengthen the wellbore. A 2% KCI /CLAYSEAL /GEM mud will be maintained through the 9 -1/4" interval. This mud offers good LCM responses if losses are encountered. Special emphasis should be placed on maintaining low ECD's and surge /swab pressures to minimize the potential for lost circulation and disturbing the coal beds. This mud is formulated with three mechanisms to provide waste minimization and effective wellbore stabilization: glycol (GEM GP), ionic inhibition (KCI), and polymer encapsulation (Clayseal). Barotrol can be used to help stabilize the coal seams. The filtrate will be tightened in the lower section of the interval. Background LCM will be added to help seal and strengthen the wellbore. The production interval will utilize an 8.8 ppg 2% KCI BARADRILn system. Baracarbs 5/25/50 will be strung into the system while drilling to help prevent differential sticking and reduce formation damage. The mud weight will be maintained to TD. Primary Drilling Objectives: • Not exceeding the maximum allowable concentration of any product • Monitoring all discharges • Zero fluid related HSE incidents • Achieve wellbore stability • Achieve good hole cleaning considering hole angle, geometry and anticipated ROP rates • Lost circulation mitigation/control • Achieve good Zonal Isolation as per plan • Il4 Achieve iWii eev e minimal l�BU formation , ON United States of America Cook Inlet Baroid Fluid Services Kenai Offshore, Alaska 11 -23 -09 -- Page 3 of 25 BAROID FLUID SERVICES. Operator • CHEVRON - MID - CONTINENT p EBIZ v 1.1 Well Name M -10 • Optimize LCM particulate to strengthen coal seams Critical Fluid Issues: • Eliminating /controlling losses in the under pressured zones. • Maintaining a low ECD in the production zone to reduce risk of lost returns. • Maintaining a stable wellbore through coal seams by reducing ECD's, surge, and swab. • Reducing drilling wastes with the inhibited drilling fluid system. • Follow new NPDES regulations Well Specifics: Casing Program MD Footage 17 -1/2" hole (13 -3/8" csg) 1401 931 9 -1/4" hole (7" csg to 6100') 6900 5499 6 -1/8" Hole (4 -1/2" Screens) 7620 1520 HALLIBURTON United States of America Cook Inlet Baroid Fluid Services Kenai Offshore, Alaska 11 -23 -09 -- Page 4 of 25 BAROID FLUID SERVICE CHEVRON - MID - CONTINENT Operator EBIZ v 1.1 Well Name M -1 Well Summary Well Data Estimated Days on Well 21 Maximum Density 9.50 ppg Total Measured Depth 7620 ft True Vertical Depth 5107 ft Maximum Deviation 92 DEG Max. Horz. Displacement Bottom Hole Temp Casing Design Description Top Top End End CSG ID CSG Bit Size Hole Hole MD (ft) TVD MD (ft) TVD (in) OD (in) (in) MD (ft) TVD (ft) (ft) (ft) Surface 0 0 1401 1371 12.415 13.375 17.500 1401 1371 Intermediate 0 0 6900 5107 6.276 7.000 9.250 6900 5107 Production 6100 4676 7620 4750 4.093 4.500 6.125 7620 4750 Fluid Program Int # Fluid Type Intery BHT Max al (degF) Density Days (ppg) 17 -1/2" Surface 7 9.50 Interval AQUAGEL Spud Mud 9 -1/4" 2% Intermediate KCl/CLAYSEAL /GEM 7 9.30 Interval GP 6 -1/8" Production Interval 2% KC1 BARADRILn 7 9.0 HALLI B U RTO N United States of America Cook Inlet Baroid Fluid Services Kenai Offshore, Alaska 11 -23 -09 -- Page 5 of 25 BARDID FLUID SERVICES • CHEVRON - MID - CONTINENT Operator EBIZ v 1.1 Well Name M -10 Fluid Properties M -10 AQUAGEL Spud Mud Name Min Max Name Min Max Density ppg 9 9.50 Yield Point lbf/100ft2 25 35 Funnel Viscosity sec /qt 60 85 API Filtrate mL /30_min 8.00 Plastic Viscosity cp 10 28 pH 8.50 9.50 2% KCl/CLAYSEAL /GEM GP Name Min Max Name Min Max Density ppg 9 9.30 Yield Point lbf /100 13 20 Funnel Viscosity sec /qt 40 53 API Filtrate mL /30min 6 Plastic Viscosity cp 6 15 pH 8.50 9.50 2% KCl BARADRILn Name Min Max Name Min Max Density ppg 8.80 9 API Filtrate mL /30min 6.00 Funnel Viscosity sec /qt 40 60 MBT ppb eq. 3 Plastic Viscosity cp 11 18 pH 8.50 9.50 Yield Point lbf/100 ft2 18 25 I HALLI B U RTO N United States of America Cook Inlet Baroid Fluid Services Kenai Offshore, Alaska 11 -23 -09 -- Page 6 of 25 III BARDID FLUID SERVICES CHEVRON - MID - CONTINENT Operator EBIZ v 1.1 Well Name M -10 Interval Summary 17 -1/2" Surface Interval Hole Size 17.50 in Interval Top MD/TVD 0 / 0 ft Interval Bottom MD /TVD 1401 / 1371 ft Footage 1401 ft Casing ID /OD 12.415 / 13.375 in Casing Length 1401 ft Washout % 15 % Pit Volume 800 bbl SCE 84 % Dilution Volume 1095.59 bbl % Solids Retained (LGS) 7 % Mud on Cuttings 0 % Start Mud Weight 9 ppg Maximum Deviation 23 DEG End Mud Weight 9.50 ppg Estimated BHT 0 degF Carry Over Volume 0 bbl Fluid Volume Required 2374.92 bbl Carry Over Weight 0 ppg Weight Up Material Required 82968.31 lbm SAP Material Product Conc. (ppb) Units 201423 SODA ASH 0.50 15 201060 AQUAGEL 15.00 444 201068 CAUSTIC SODA 0.10 3 201681 BARAZAN D PLUS 0 478095 BAROID 41 1904 201318 BA.PAC -L - 50 LB BAG 1.00 30 201126 DEXTRID LT 1.00 30 201583 BA.ALDACIDE G - 5 GAL CAN 0.10 3 201478 BA.X -TEND II - 2 LB BAG 0.02 15 HALLIBURTON United States of America Cook Inlet Baroid Fluid Services Kenai Offshore, Alaska 11 -23 -09 -- Page 7 of 25 • • BARDID FLUID SERVICES CHEVRON - MID - CONTINENT Operator EBIZ v 1.1 Well Name M -10 Interval Discussion 17 -1/2" Surface Interval Surface Hole Recommendations - (17 -1/2" hole, 13 -3/8" casing to 1401') Properties: Densit Viscosit Plastic Viscosi Yield Point API FL .H 470' -1401' 9.0 -9.3 60 - 85 10 - 28 25 - 35 <8 8.5 -9.0 System Formulation: pre- hydrated gel /produced water spud mud Product Concentration Fresh Water 0.905 bbl Soda Ash 0.5 ppb Aquagel 12 -15 ppb Caustic 0.1 ppb (9 pH) Barazan D as needed Baroid 41 as required for weight PAC L /Dextrid if required for <8 FL Aldacide G 0.1 ppb X -TEND II 0.02 ppb Concerns and Contingencies Surface Interval - (1,401' MD - 17-1/2" hole, 13 -3/8" casing) Mud Type: Pre - hydrated gel /produced water spud mud 1. Mud weight: Maintain the 9.0 — 9.3 ppg density or as directed. At TD the MW will be increased to 9.5 ppg. 2. Rheology: Maintain a YP between 25 -35 or as needed to achieve adequate hole cleaning. 3. Filtrate control: Maintain the filtrate <8 using DEXTRID and /or PAC L. Additions of CONDET may be required to control screen blinding /BHA balling. Losses in this interval can be controlled with additions of 3 ppb BAROFIBRE and 3 ppb of Baracarb 50 or by dedicated LCM pills. Operations Summary: Mix a -50 bbl LCM pill prior to drilling out. The pill formulation will be: 45 bbls base mud, 15 ppb BAROFIBRE, and 15 ppb of BARACARB 50. Pre - hydrated AQUAGEL should be used to maintain rheological parameters. Maintain the mud as clean as possible while drilling. Should sweeps be required, a high viscosity sweep is recommended. Run DFG (Drilling Fluid Graphics) to confirm hole cleaning efficiency based on current rheology, flow rates, angle and cuttings size. Sweep Formulation: 65 bbl of mud with -1 ppb of BARAZAN D+ added. AQUAGEL and BARAZAN D+ should be used to maintain rehology. X -TEND II should be used to supplement the AQUAGEL. DEXTRID and /or PAC L should be used for filtrate control. Background LCM (10 ppb total) BARACARBs /BAROFIBRE /STEELSEALs should be maintained in the system while drilling the surface interval to prevent losses and strengthen the wellbore. While drilling, monitor the torque and drag to determine if liquid lubricant is required. If so, approval from town will be required prior to additions of lubricants. STICKLESS 20 drilling beads could provide an alternative to lubricants. Additions of CONDET are recommended to reduce the cAe;ce of bit ' n�c t� b�all�i a_n�7rding„when penetrating high -clay content sections. Maintain the pH in o a ditions of ALDACIDE G / X -Cide 207 should be made to control bacterial action. United States of America Cook Inlet Baroid Fluid Services Kenai Offshore, Alaska 11 -23 -09 -- Page 8 of 25 • BARDID FLUID SERVICES CHEVRON - MID - CONTINENT Operator EBIZ v 1.1 Well Name M -10 At TD, a Wallnut "flag" (30 bbl pill with 5 ppb of WALLNUT M) or carbide pill should be pumped to gauge hole washout and to calculate the required cement volume. The cement will then be pumped and drilling mud will be used to bump the plug. Pretreat this chase mud with 1 ppb Bicarb and 0.5 ppb citric acid. The mud weight will be increased to 9.5 ppg before running surface casing and cementing. Losses have historically occurred in this interval. Ensure that the mud weight is maintained in the 9.0 -9.3 ppg range through this area. Maintaining background LCM concentrations at 10 ppb total ( BARACARBs /BAROFIBRE /STEELSEALs) has proven successful on M -17, M -18, M -06, and M -20. Stress slow pipe movement to the drillers to reduce surge /swab on the zone. Stage pumps on slowly after connections and begin rotation prior to pumping (this will break the gels and reduce the pressure required to break the gels). Reduce system YP with BARATHIN or CARBONOX as required for running casing (do not jeopardize hole conditions). Run casing carefully to minimize surge and swab pressures. Reduce the system rheology with BARATHIN or CARBONOX once the casing is landed to a YP < 20 (check with the cementers to see what yp value they have targeted). Consider spotting a STEELSEAL 400 LCM pill prior to running the 13 -3/8" casing if losses have been seen in this interval. The plug will be bumped with mud on the well. This well is a large borehole. Modeling shows that it will become much more difficult to clean if flowrates drop below 800 gpm. Maintain a minimum 25 YP at all times. Be prepared to increase the YP if hole cleaning becomes an issue. Run DFG (Drilling Fluid Graphics) to confirm hole cleaning efficiency based on current rheology, flow rates and cuttings size. Maximum Acceptable ROP in fph at Specified GPM and RPM GPM--+ 600 800 1000 80 rpm 48 64 87 100 rpm 52 74 95 Baroid recommends a flowrate in the 800 gpm range to maximize hole cleaning efficiencies at these higher penetration rates. However if losses occur, the flow rate can be reduced in conjunction with a slower penetration rate which would reduce the ECD /losses. Hazards / Concerns — Surface Interval: • Optimize solids control equipment to maintain density and sand content. • Maintain YP between 25 -35 to optimize hole cleaning and to control ECD. • Pump high viscosity sweeps to enhance hole - cleaning efforts. Monitor sweep effectiveness. • Successfully land and cement casing. HALLIBURTON United States of America Cook Inlet Baroid Fluid Services Kenai Offshore, Alaska 11 -23 -09 -- Page 9 of 25 BARDID FLUID SERVICES CHEVRON - MID - CONTINENT Operator EBIZ v 1.1 Well Name M -10 Interval Summary 9 -1/4" Intermediate Interval Hole Size 9.25 in Interval Top MD/TVD 1401 / 1371 ft Interval Bottom MD /TVD 6900 / 5107 ft Footage 5499 ft Casing ID /OD 6.276 / 7.000 in Casing Length 6100 ft Washout % 10 % Pit Volume 800 bbl SCE 68 % Dilution Volume 2050.35 bbl % Solids Retained (LGS) 6 % Mud on Cuttings 0 % Start Mud Weight 9 ppg Maximum Deviation 83 DEG End Mud Weight 9 ppg Estimated BHT 0 degF Carry Over Volume 0 bbl Fluid Volume Required 3444.57 bbl Carry Over Weight 0 ppg Weight Up Material Required 31300.16 lbm SAP Material Product Conc. (ppb) Units 201368 BA.POTASSIUM CHLORIDE - 50 LB 7.00 194 BAG 201068 CAUSTIC SODA 0.20 6 201681 BARAZAN D PLUS 1.00 56 201126 DEXTRID LT 2.00 56 201318 BA.PAC -L - 50 LB BAG 1.00 28 201329 BA.CLAYSEAL - 55 GAL DRUM 4.00 13 201583 BA.ALDACIDE G - 5 GAL CAN 0.10 3 201627 BA.GEM GP - 55 GAL DRUM 5.20 16 478095 BAROID 41 621 HALLIBURTON United States of America Cook Inlet Baroid Fluid Services Kenai Offshore, Alaska 11 -23 -09 -- Page 10 of 25 • BAROID FLUID SERVICES CHEVRON - MID - CONTINENT Operator EBIZ v 1.1 Well Name M -10 Interval Discussion 9 -1/4" Intermediate Interval Intermediate Hole Section Recommendations (9 -1/4" Pilot Hole, 7" casing to 6,100') Mud Type: 2% KCI, CLAYSEAL, GEM GP Properties: Densit Viscosit Plastic Viscosi Yield Point API FL • H 1401' -6900' 9.0 -9.3 40 -53 6 - 15 13 - 20 <6 8.5 -9.5 System Formulation: 2% KCI, CLAYSEAL, GEM GP Product Concentration Water 0.905 bbl KCI 7 ppb Caustic 0.2 ppb (9 pH) Barazan D 0.75 ppb (as required 18 YP) Dextrid 1 -2 ppb PAC L 1 ppb Clayseal 4 ppb (initial 1.5 ppb) Aldacide G 0.1 ppb GEM GP 1.5% by volume (5.2 ppb) Baroid as needed for 9.0 ppq Special Mixing Instructions: • Mix in order as listed • Add polymers slowly to minimize fisheyes. Intermediate Interval (9 -1/4" hole, 7" casing to 6,100' MD) Mud Type: 9.0 ppg KCl/ Clayseal /GEM System. 1. Mud weight: Maintain the density at 9.0 ppg or as needed; use solids control and whole mud dilution. Increase density as required for hole stability /coal sloughing. Maximize solids control usage. 2. Rheology: Maintain a YP between 13 and 20. Pump high viscosity sweeps throughout the interval as needed, particularly prior to POH for casing. Optimized mud rheology, RPM, and flow rate will be the primary mechanisms for achieving hole cleaning in this deviated wellbore. Maximize pipe rotation (ideally > 100 RPM). 3. Other issues: The use of good drilling practices to minimize excessive swab and surge pressure should be employed to minimize the chances for losses and differential sticking. LCM (BARACARBs 5/25/50, STEELSEAL 50/100/400, BAROFIBRE) should be maintained at elevated concentrations while drilling coals to help strengthen the wellbore. Operations Summary: Mix a -50 bbl LCM pill prior to drilling out. The pill formulation will be the 50 ppb pill from the LCM tree. Mix the recommended LCM material in thinned back base mud. Drill out the cement/casing with the existing mud system. Soda ash and citric acid should be used to pretreat for any negative effects of the cement. After id. e I p ai 11 CFI BR'E E SEAL 0 1 0 should be d maRBain 5, 25 d at d 5 p pb. o should The United States of America Cook Inlet Baroid Fluid Services Kenai Offshore, Alaska 11 -23 -09 -- Page 11 of 25 BARDID FLUID SERVICE CHEVRON - MID - CONTINENT Operator EBIZ v 1.1 Well Name M -10 CLAYSEAL concentration should be 1.5 ppb in the initial mix. As the mud shears, slowly raise the CLAYSEAL concentration to its full 4 ppb concentration. GEM GP should be maintained at 1.5% v/v (5.2 ppb). BARAZAN- D+ should be used to maintain rheological parameters. Maintain the mud as clean as possible while drilling. Should sweeps be required, a high viscosity sweep is recommended. Sweep Formulation: 50 bbl of mud with -1 ppb of BARAZAN D+ added. DEXTRID and PAC L should be used for filtrate control (6cc range). 4 ppb BAROTROL should be added to help control coals and shales. While drilling, monitor the torque and drag to determine if liquid lubricant is required. If so, approval from town will be required prior to additions of lubricants. STICKLESS 20 drilling beads could provide an alternative to lubricants. Additions of CONDET are recommended to reduce the incidence of bit balling and shaker blinding when penetrating high -clay content sections. Maintain the pH in the 8.5 - 9.5 range with caustic soda. Daily additions of ALDACIDE G / X -Cide 207 should be made to control bacterial action. Maintain Cl- with 2% KCI. The GEM GP can be raised above the 1.5% level to help reduce torque. Do not exceed 3% v/v of GEM GP. At TD, a 13.8 ppg balanced pill (base mud thinned and weighted to 13.8 ppg with barite) will be spotted from 6100' -6900' before the final trip out of the hole to run the 7" casing. The pill should be spotted with reduced pump rates to reduce the chance of losses. This pill will allow the 7" casing to be run and cemented at 6100' in a two stage cement job leaving 6100' - 6900' open - 1 stage cement will be 13.5 ppg. Reduce system YP as required for running casing (do not jeopardize hole conditions). Run casing carefully to minimize surge and swab pressures. Reduce the system rheology once the casing is landed to a YP < 15 (check with the cementers to see what YP value they have targeted). Consider spotting a STEELSEAL LCM pill (20 ppb of the different sizes of STEELSEAL) prior to running the casing if losses have been seen in this interval. Suggested Drilling Parameters Pump rate and drill string rotation should be optimized through the real -time use of the DFG software for the actual ROP while drilling. The table below highlights the maximum ROP recommendations above which hole cleaning will become an issue in this interval. Maximum Acceptable ROP in fph at Specified GPM and RPM GPM— 500 600 700 60 rpm 62 82 102 80 rpm 118 144 175 100 rpm 146 173 208 Rotary speed is the most critical factor in cleaning this highly deviated wellbore. Maximize rpms at all times. ROPs above these levels or with no rotation (sliding) or low rpm will require an increased frequency of the following remedial hole cleaning practices: • extended periods of circulation (with maximum pipe rpm, targeting > 100 rpm) • hole cleaning sweeps (change flow regime of base mud by using fibers, density or rheology for carrying capacity) HALL oraut r etiq extended gpm, rpm and back reaming during the connection United States of America Cook Inlet Baroid Fluid Services Kenai Offshore, Alaska 11 -23 -09 -- Page 12 of 25 • BARDID FLUID SERVICES CHEVRON - MID - CONTINENT Operator EBIZ v 1.1 Well Name M -10 Interval Summary 6 -1/8" Production Interval Hole Size 6.13 in Interval Top MD/TVD 6100 / 4676 ft Interval Bottom MD /TVD 7620 / 5107 ft Footage 1520 ft Casing ID /OD — Wire - wrapped screens 4.093 / 4.500 in Casing Length — Wire - wrapped screens 1520 ft Casing ID /OD 6.276 / 7.000 in Casing Length 6100 ft Washout % 10 % Pit Volume 630 bbl SCE 85 % Dilution Volume 228.50 bbl % Solids Retained (LGS) 4 % Mud on Cuttings 0 % Start Mud Weight 8.80 ppg Maximum Deviation 92 DEG End Mud Weight 8.80 ppg Estimated BHT 0 degF Carry Over Volume 0 bbl Fluid Volume Required 1149.33 bbl Carry Over Weight 0 ppg Weight Up Material Required 27968.701bm SAP Material Product Conc. (ppb) Units 201368 BA.POTASSIUM CHLORIDE - 50 LB 7.00 177 BAG 201068 CAUSTIC SODA 0.20 6 201652 BA.N -VIS - 25 LB BAG 1.50 76 201112 BA.N -DRIL HT PLUS - 50 LB BAG 4.00 93 201583 BA.ALDACIDE G - 5 GAL CAN 0.10 3 201627 BA.GEM GP - 55 GAL DRUM 5.20 14 201606 BA.BARACARB 5 - 50 LB BAG 7.00 161 201306 BARACARB 25 7.00 161 201311 BARACARB 50 7.00 161 HALLIBURTON United States of America Cook Inlet Baroid Fluid Services Kenai Offshore, Alaska 11 -23 -09 -- Page 13 of 25 BARDID FLUID SERVICES. Operator CHEVRON - MID - CONTINENT P EBIZ v 1.1 Well Name M -10 Interval Discussion 6 -1/8" Production Interval Horizontal Section Recommendations (6-1/8" Horizontal Hole, 4 -1/2" Screens 7,620') Mud Type: 2% KCI BARADRILn Properties: Density Viscosity Plastic Viscosity Yield Point API FL MBT pH 6100' — 7620' 8.8 40 -53 11 - 18 18 - 25 <6 <3 8.5 -9.5 System Formulation: 2% KCI BARADRILn Product Concentration Water 0.943 bbl KCI 7 ppb Caustic 0.2 ppb (9 pH) N -VIS 1.5 ppb (as required 20 YP) N -DRIL HT+ 4 ppb Aldacide G 0.1 ppb GEM GP 1.5% by volume (5.2 ppb) BARACARB 5 7 ppb BARACARB 25 7 ppb BARACARB 50 7 ppb Special Mixing Instructions: • Mix in order as listed • Add polymers slowly to minimize fisheyes. Production Horizontal Interval (6 -1/8" hole, 4 -1/2" Screens 7,620 MD) Mud Type: 8.8 ppg 2% KCI BARADRILn 1. Mud weight: Maintain the density at 8.8 ppg or as needed with BARACARBs; use solids control and whole mud dilution to maintain a clean fluid. Maximize solids control usage. 2. Rheology: Maintain a YP between 18 and 25. Pump high viscosity sweeps throughout the interval as needed, particularly prior to POH for casing. Optimized mud rheology, RPM, and flow rate will be the primary mechanisms for achieving hole cleaning in this deviated wellbore. Maximize pipe rotation (ideally > 100 RPM). 3. Other issues: The use of good drilling practices to minimize excessive swab and surge pressure should be employed to minimize the chances for losses and differential sticking. BARACARBs should be maintained in the system for sealing of the production sands. Operations Summary: Drill out the cement/casing with the existing mud system. The pilot hole from 6100' -6900' will be cleaned out circulating out the heavy mud spotted for cementing casing at 6100'. The heavy mud should be circulated out of the hole in stages — minimum of two stages due to the tremendous increase in ECD with the heavy mud. 161 r' ki • M ri , 116. he old mud and drill 20' new hole and the well will be displaced o /o + . L o• - h it acid should be used to pretreat for any negative effects of the United States of America Cook Inlet Baroid Fluid Services Kenai Offshore, Alaska 11 -23 -09 -- Page 14 of 25 BAROID FLUID SERVICES CHEVRON - MID - CONTINENT Operator EBIZ v 1.1 Well Name M -10 cement. After obtaining a leak off, begin drilling ahead displacing to the 2% KCI BARADRILn system. A spacer (15 bbls 2% KCI BARADRILn plus 1 ppb N -VIS) should be pumped when displacing the system to allow for a clean displacement. This low solids mud system is designed to reduce damage to production sands and precaution should be taken to keep the system clean. Barite will not be used in this system. If a weight up becomes necessary, BARACARBs should be utilized. GEM GP should be maintained at 1.5% v/v (5.2 ppb). N -VIS should be used to maintain rheological parameters. Maintain the mud as clean as possible while drilling. Maintain the MBT of the fluid below a 3. Whole mud dilutions may be necessary to maintain a clean fluid. Should sweeps be required, a high viscosity sweep is recommended. Sweep Formulation: 10 bbl of mud with -1 ppb of N -VIS added. N -DRIL HT+ should be used for filtrate control ( <6). While drilling, monitor the torque and drag to determine if liquid lubricant is required. If so, approval from town will be required prior to additions of lubricants. STICKLESS 20 drilling beads could provide an alternative to lubricants. Maintain the pH in the 8.5 - 9.5 range with caustic soda. Daily additions of ALDACIDE G / X -Cide 207 should be made to control bacterial action. Maintain Cl- with 2% KCI. The GEM GP can be raised above the 1.5% level to help reduce torque. Do not exceed 3% v/v of GEM GP. This interval will have a wire - wrapped screen, open hole completion ran. Depending on the final completion design, it may be necessary to displace the open hole volume at TD before pulling out of the hole to run the screens. Breakers will be used to treat the mud left in the open hole. Suggested Drilling Parameters Pump rate and drill string rotation should be optimized through the real -time use of the DFG software for the actual ROP while drilling. The table below highlights the maximum ROP recommendations above which hole cleaning will become an issue in this interval. Maximum Acceptable ROP in f 3h at Specified GPM and RPM GPM-> 175 200 225 60 rpm 50 60 81 80 rpm 70 80 90 100 rpm 95 110 130 Rotary speed is the most critical factor in cleaning this highly deviated wellbore. Maximize rpms at all times. ROPs above these levels or with no rotation (sliding) or low rpm will require an increased frequency of the following remedial hole cleaning practices: • extended periods of circulation (with maximum pipe rpm, targeting > 100 rpm) • hole cleaning sweeps (change flow regime of base mud by using fibers, density or rheology for carrying capacity) • connection practices - employing extended gpm, rpm and back reaming during the connection HALLIBURTON United States of America Cook Inlet Baroid Fluid Services Kenai Offshore, Alaska 11 -23 -09 -- Page 15 of 25 • BARDID FLUID SERVICES • CHEVRON - MID - CONTINENT Operator EBIZ v 1.1 Well Name M -10 Product Description AQUAGEL AQUAGEL® treated sodium montmorillonite is a finely ground, premium -grade western sodium bentonite which meets the American Petroleum Institute Specification 1 3A, Section 9 requirements. AQUAGEL® viscosifier provides viscosity and gelling characteristics to most water -based drilling fluids. BARAZAN D PLUS BARAZAN D PLUS agent is a powdered, dispersant -added biopolymer (xanthan gum); helps provide viscosity and suspension in fresh water, sea water, sodium bromide, potassium bromide, potassium chloride, and sodium chloride -based fluids. It has been specially formulated to help enhance dispersibility. BA.PAC -L - 50 LB BAG PAC -L polyanionic cellulose is used to provide filtration control in most water -based drilling fluids. PAC -L filtration control agent can also be used as a thinner in sea water and brine -based fluids in small concentrations. DEXTRID LT DEXTRID LT modified starch, helps provide filtration control with minimum viscosity buildup in water -based drilling fluids. Through its coating mechanism, DEXTRID LT helps to reduce dispersion of clay particles and stabilize reactive formations. DEXTRID LT is stable against bacterial degradation. BA.ALDACIDE G - 5 GAL CAN ALDACIDE G glutaraldehyde solution is used to control bacteria growth in water -based drilling fluids. ALDACIDE G microbiocide is recommended for use with systems containing polymers that are readily biodegradable (i.e. starches, biogums, etc.). I BA.X -TEND II - 2 LB BAG X -TEND II polyacrylate/ polyacrylamide copolymer is used to help increase the yield of bentonite clays in water -based drilling fluids. X -TEND II extender acts as a selective flocculant to agglomerate or coagulate colloidal solids. This allows for more effective removal of solids by the surface solids control equipment. X -TEND II extender treated -fluids are shear thinning which promotes faster drilling rates and more efficient hole cleaning. X -TEND II extender was specifically developed to work with AQUAGEL® viscosifier products. BA.CLAYSEAL - 55 GAL DRUM CLAYSEAL low molecular weight amphoteric material helps reduce dispersion and hydration of reactive clays and shale formations. C b �rermlte� greater than 300 °F (149 °C). United States of America Cook Inlet Baroid Fluid Services Kenai Offshore, Alaska 1 1 -23 -09 -- Page 16 of 25 BAROID FLUID SERVICES CHEVRON - MID - CONTINENT Operator EBIZ v 1.1 Well Name M -10 BA.GEM GP - 55 GAL DRUM GEM CP polyalkylene glycol is used in water -based drilling fluids to help improve lubricity and shale stability. It is recommended for use in potassium -based and sodium -based salt (2 -15 percent by weight) systems in areas where highly reactive clays are anticipated. BA.N -VIS - 25 LB BAG N -VIS polymer is a premium quality xanthan product recommended for use where formation protection, solids suspension, and improved hole cleaning are primary concerns. BA.N -DRIL HT PLUS - 50 LB BAG N -DRIL HT PLUS filtration control agent is a specially processed, stabilized nonionic starch derivation for controlling high pressure - high temperature filtrate loss at temperatures up to 250 °F (121 °C) and enhancing the low shear rate viscosity of a fluid containing xanthan gum biopolymer. This unique polymer combination is synergistic and yields improved static suspension. Fluid compositions mixed with N -DRIL HT PLUS filtration control agent can be used to drill into pay zones and under ream. It can also be used as pre and post gravel pack fluid and as lost circulation pills. BA.BARACARB 5 - 50 LB BAG BARACARB sized - calcium carbonate (ground marble) is available in six grades: 5, 25, 50, 150, 600, 2300. BARACARB 25 BARACARB sized - calcium carbonate (ground marble) is available in six grades: 5, 25, 50, 150, 600, 2300. BARACARB 50 BARACARB sized - calcium carbonate (ground marble) is available in six grades: 5, 25, 50, 150, 600, 2300. i HALLI B U RTO N United States of America Cook Inlet Baroid Fluid Services Kenai Offshore, Alaska 11 -23 -09 -- Page 17 of 25 • BARDID FLUID SERVICES CHEVRON - MID - CONTINENT Operator EBIZ v 1.1 Well Name M -10 Appendixes 17'/2" Surface Hole Modeling Jpera (or Chevron Operator. Chevron Ope ala: Chevron AOUAOEL Spud Mud 2.480 X Cutting TM *calor Chevron Operator. Chem Operator. Chem Flow Rete.900 gaVmn ROP =80 ft/hr 2.597 X Cutting Elf Cuttings iransppal Average Hole ECD Mud WO =321)/0 CilliN Dia =25n Load,% Ell avgR V, Rhin Angle Ib/gal R- 1sip80Rhv1201pmIRC120rpm3m1C=3m1 Eti ■ w1 0 Cut _ y 5x4.276x514.00I 270 6.60. I'._1111 11111 47gg)47o0)fl 9232r 954o 6194 254 j . u.5n I II 800017990)8 - 2 BO 924919.589 IWO -- 15x3x804.081 1c - 00 ! I i 17.50 I i 1401.0)1343.0)8 2 ' 9285/9.590 b/ • 075 x3.x030 1 1 1491.7 5 10 15 20 25 0 50 100 0 43 85 30 6O 90 9.10 380 1 7h CUT lire HA lli r n R CIEBURgrarklump rates lower then 800 gpm. RPM'S have little effect in this United States of America Cook Inlet Baroid Fluid Services Kenai Offshore, Alaska 11 -23 -09 -- Page 18 of 25 • BARDID FLUID SERVICES Operator CHEVRON - MID - CONTINENT Ope EBIZ v 1.1 Well Name M -10 9 -1/4" Intermediate - Pilot Hole Modeling Jpealos Chenm Iriervi 11/4 elemedatellot : 2%KCl/CIAYSEA11GEMGP 1019nigTold 411,1•10 FIN Rale =500gaUmn ROP =68 Rhs 1 "XCitigER Cuttings Import Average Hole EGO Mud Wdghl =9.2bWgal CultirgDia =.150 Load, 2 EH avg 6 V, R h i n We lb/gal R 1 s@ W fthx 80 rpm / RC Ell rpmr3m / G3m / 94 w/oCul 1 w./ Cut 12415n 1. 07' 111 11 111 929519.412 blgH 103 12415 r 1000 8000(7990)fl 9.235/9.419 b/gal 124150 ® 1401.0(1343.0)4 T 9299/9.425 WO 112A 9.250 117320) 7- 1821A4 9354!9.490 6/gel 3W0 9 0 — 15.x4 3200.0(27%0lfl MI 9452 /9.640 b/gi 1111 ' 9250 37000(3247.0) II — – 126 9445/9.653 btgd a 9250 43L100(3�1.0)fl — : iuii 9476/9.660 9250 1 5000.0(43480 )4 9493/9.607 b/gd 1 I 925 ii 54594O�fl — – IlL91111 1 11 1111 5000( 951219.716 b/gal •gJ 7- – D III II 11 R = 396 ■■ III ME MEM. 9250 28511 1 iII . 9.555/9.776)6/gel ] - 4043.01l7.0)4 G. x 225 x 112041 HC 9' 19.191 blgel 7000 1 1 1 r , f 1 1 7P24.3 5 10 15 20 25 0 50 100 0 124 247 3 60 90 9.10 9.40 10]0 1.5hUJflee &nyl cl ni i r co y : rpm, and 80 ft/hr. RPMs are critical for cleaning this highly e e I w r• , - - • • • r hole cleaning. United States of America Cook Inlet Baroid Fluid Services Kenai Offshore, Alaska 11 -23 -09 -- Page 19 of 25 BARDID FLUID SERVICES CHEVRON - MID - CONTINENT Operator EBIZ v 1.1 Well Name M -10 6 -1/8" Production Horizontal Hole Modeling Juror Chem Intent 6.125 Ha¢mli : 2X KU BARADRIIn 2472 %Cullng Total i+etM.10 Arm Hale = 200 ORM ROP °IA 1.760%Cutlir*Ell Cuttings Tramport Average Hole ECD Mud Weight= 8.8b /gal CultngDia =.15n Load, X EH mg X V, Win Anse b/gal 13•1 s@ 60 VIA rpm! HG 80 ipm.31 / C =3m 1 BB r140Cd W`\ 62]6 n 471.0 1470. ii•uui "I 9.321/9.435 - - ,- 932119.435 i 1IIuIIlI 6.276n 800.0[!99.0)8 10W 9.322/9.433 b/gal 6.276n 113430111 9.344 - IIUI1I■"I 1401.0 6. (1 470 NO ^ 111111111 2.52 1827.0(17320) It 9.350/9.486 b/gal 6.276 n 32010127860)11 :: _ 111111111 p 9399/9.606 b/grJ 8 6276h - {3.5x2764x'�'x.Ofl� 3700.0 (3247.0111 939419.587 b/gal i - iulIIiuI 4300.0(3807.0)11 am/9.567 b/gia i i-IIuIIuIi1 6.216e 5000.0 (4349.0111 9400/9.593 b/gal - _ 1 6 000 1459401ft --- Mill 1 942419.638 b/gal =II IUI _ 1111 E 6.276n D2D]11 _ 9.46619.689 13/01 mil Q OM ■II ■I!: 1 ■I! 6276 i ��m....mtt�ttttmttttttt •IwII.■■mtts1• 5632.0(4676.0)11 �, _1 UI (.■1 9.452/9.673 b/gM � �1 1 •I MII 6276n 61000 (4726.0)11 9.473/9.697 b/got 6.125 in 6347.0 99 1 1 9 126 blgal ' 13.5 x 2063 x 626.0111 119 111.11 I 'ii 6125n 4.75 x 225 x 243011 76480 74680(4750.0) 0 5 10 15 20 25 0 50 100 0 164 328 30 63 93 880 9.83 1980 969419.921 b/gdl 2.3 h CUT ire Good hole cleaning is achieved at 200 gpm, 80 rpm, and 60 ft/hr. Again, RPMs are critical for cleaning this 1 ALL_4BtJR1DJide poor hole cleaning. ECD rises rapidly with increased pump United States of America Cook Inlet Baroid Fluid Services Kenai Offshore, Alaska 11 -23 -09 -- Page 20 of 25 • Chevron eelhead Platform !Awl ell M -10 %10 Proposed 11 -18 -09 7 Casing &Tubing Detail RKB to TBG Head = 78' BTM BTM SIZE WT GRADE CONN MIN ID TOP (MD) (TVD) 28" Structural 27" Surface 479'' -(Y / 470' sssv 13 -3/8" 68 L -80 BTC 12.415 Surface 1401' _ 1371' W6 1r 28" Conductor 7" 6 26 L -80 6.276 Surface 088 511 4676 _ 9.5 SLHT 5900 7620 4750 ECP Stage Collar , 3 4 � . 1/2 9.2 L -80 TC -II 2.992 Surface 5900' 4750 • Logging Detail Hole LWD /MWD Wire Line Mud Logging Notes Section 17 % gMWD, GR/RES Gas On Site Geologist 1 1 13 3/8" in 17 K" Hole 8 % Triple Combo Mudlog On Site Geologist • 6" Triple Combo Mudlog On Site Geologist Perforation Detail MD TVD Zone Density Anticipated Pore (SPF) Pressure (psi) M . Stage Collar NA Item Depth MD Depth TVD OD ID ECP Stage Collar 480' 480' 3.5 WellStar TRSV 12.6 TCII 500' 500' v 7" Casing in 9 1/4° Hole 3 1/2" SFO -1 Mandrel 1594' 1542' 3.5 XXO SVLN CIM 12.6 TCII 2200' 2011' 6" hole w /,open hole 3 %" SFO -1 Mandrel 3644' 2813 screen _ 4 O „ 3' V2" SFO -1 Mandrel 5572' 3892' „IL Cement stage collar 5805' 4000' 3 1/2" SFO -1 Mandrel 7237' 4861' 3 1/2 Dura Sleeve / GLV 8550' 5633' 8600' 5663' 8624' 5677' / 4.5" wire wrap screen 8800' 5780' 11300' 7595' Cementing Information Description Volume Density Yield (ft3 /sx) Notes (bbls) (ppg) TD: 7550' MD Surface 1st stg 240 13.0/14.0 1.95 (B #2) Surface 2 stg 336 13.0 1.95 (B #2) Intermediate 1 stg 109 14.0 1.95 (B #2) Intermediate 2 ntl stg 250 13.0 1.95 (B #2) Production single stage - - - None \X HOLE ANGLE = 90° @ 6100' MD Well f)etail f)RAWN RY• TF 10/23/O9 Chevron ftoo %0 M -10PB1 (P12) Proposal Scblumberger � ) p Report Date: November 23, 2009 Survey! DLS Computation Method: Minimum Curvature / Lubinski Client Chevron Vertical Section Azimuth: 10.000° Field: Trading Bay Unit Vertical Section Origin: N 0.000 ft, E 0.000 ft • Structure /Slot: Steelhead / leg Al slot 7 TVD Reference Datum: Rotary Table Well: M -10 TVD Reference Elevation: 160.0 ft relative to Mean Sea Level Ve� Borehole: M -10PB1 APP Wed .. Sea Bed / Ground Level Elevation: - 185.000 ft relative to Mean Sea Level UWI/API#: 50733xxxxx70 Magnetic Declination: 18.387° Survey Name I Date: M -10PB1 (P12) D3 pilot / November 23, 2009 Total Field Strength: 55539.868 nT Tort/ AHD 1 DDI I ERD ratio: 209.909° / 3882.68 ft / 6.042 / 0.761 Magnetic Dip: 73.638° Grid Coordinate System: NAD27 Alaska State Planes, Zone 04, US Feet • Declination Date: December 23, 2009 le Location LatiLong: N 60.83178787, W 151.60239696 Magnetic Declination Model: BGGM 2009 Location Grid NIE YIX: N 2499450.290 ftUS, E 214080.250 ftUS , North Reference: True North Grid Convergence Angle: - 1.39928826° Total Corr Mag North a True North: +18.387° Grid Scale Factor: 0.99999302 Local Coordinates Referenced To: Well Head Measured Azimuth Vertical NS EW Mag 1 Gray Directional Zone 0f Zone Of Comments Inclination Subsea TVD TVD DLS Northing Easting Depth True Section True North True North Tool Face Difficulty Exclusion Exclusion (ft ) (deg) (deg) I (ft) (ft) I (ft) _ (ft) (ft) (deg) (deg/100ft ) Index (deg) Alert (ftUS) (ftUS) RTE 0.00 0.00 170.00 - 160.00 0.00 0.00 0.00 0.00 -- 0.00 0.00 16.36 2499450.29 214080.25 MSL 160.00 0.00 170.00 0.00 160.00 0.00 0.00 0.00 - 0.00 0.00 16.36 2499450.29 214080.25 Mud Line 345.00 0.00 170.00 185.00 345.00 0.00 0.00 0.00 - 0.00 0.00 16.36 2499450.29 214080.25 28" Conductor 480.00 0.00 170.00 320.00 480.00 0.00 0.00 0.00 -- 0.00 0.00 16.36 2499450.29 214080.25 KOP Bld 1.5/100 0 525.00 0.00 170.00 365.00 525.00 0.00 0.00 0.00 170.00M 0.00 0.00 16.36 2499450.29 214080.25 600.00 1.13 170.00 440.00 600.00 -0.69 -0.73 0.13 170.00M 1.50 0.00 17.36 2499449.56 214080.36 Bld 3/100 625.00 1.50 170.00 464.99 624.99 -1.23 -1.29 0.23 170.00M 1.50 0.29 17.70 2499449.00 214080.45 700.00 3.75 170.00 539.91 699.91 -4.46 -4.67 0.82 170.00M 3.00 1.25 19.74 2499445.60 214080.96 800.00 6.75 170.00 639.47 799.47 -13.05 -13.68 2.41 HS 3.00 1.97 22.52 2499436.55 214082.33 900.00 9.75 170.00 738.43 898.43 -26.54 -27.81 4.90 HS 3.00 2.44 25.36 2499422.37 214084.47 1000.00 12.75 170.00 836.50 996.50 -44.87 -47.02 8.29 HS 3.00 2.79 28.22 2499403.08 214087.39 1100.00 15.75 170.00 933.41 1093.41 -68.00 -71.26 12.57 HS 3.00 3.06 31.11 2499378.74 214091.07 1200.00 18.75 170.00 1028.90 1188.90 -95.86 - 100.46 17.71 HS 3.00 3.29 34:01 2499349.43 214095.51 1300.00 21.75 170.00 1122.71 1282.71 - 128.38 - 134.54 23.72 HS 3.00 3.48 36.93 2499315.21 214100.68 End Bld 1345.76 23.12 170.00 1165.00 1325.00 - 144.79 - 151.74 26.76 - -- 3.00 3.56 38.27 2499297.94 214103.29 13- 3/8 "Csg 1345.77 23.12 170.00 1165.01 1325.01 - 144.79 - 151.74 26.76 - 0.00 3.56 38.27 2499297.94 214103.29 Cry 4/100 1365.76 23.12 170.00 1183.39 1343.39 - 152.17 - 159.48 28.12 6.92L 0.00 3.58 38.27 2499290.18 214104.47 1400.00 24.48 169.60 1214.72 1374.72 - 165.14 - 173.08 30.57 6.55L 4.00 3.64 39.56 2499276.52 214106.58 1500.00 28.46 168.64 1304.22 1464.22 - 206.77 - 216.84 39.00 5.70L 4.00 3.81 43.37 2499232.57 214113.95 1600.00 32.44 167.91 1390.41 1550.41 - 253.83 - 266.44 49.32 5.06L 4.00 3.96 47.19 2499182.72 214123.05 1700.00 36.43 167.31 1472.87 1632.87 - 306.10 - 321.66 61.46 4.57L 4.00 4.09 51.04 2499127.23 214133.84 WellDesign Ver SP 2.1 Bld( users) leg Al slot 7\M- 10 \M- 10PB1\M -10PB1 (P12) D3 pilot Generated 11/23/2009 2:54 PM Page 1 of 3 I Measured Azimuth Vertical NS EW Mag / Gray Directional Zone Of Zone Of Comments Inclination Subsea TVD TVD DLS Northing Easting Depth True Section True North True North Tool Face Difficulty Exclusion Exclusion (ft) (deg) (deg) (ft) (ft) (ft) (ft) (ft) (deg) (deg1100ft ) Index (deg) Alert (ftUS) (ftUS) 1800.00 40.42 166.82 1551.20 1711.20 - 363.32 - 382.22 75.38 4.18L 4.00 4.22 54.91 2499066.35 214146.28 1900.00 44.41 166.40 1625.01 1785.01 - 425.21 - 447.81 91.00 3.88L 4.00 4.34 58.79 2499000.39 214160.29 End Cry 1975.59 47.42 166.13 1677.60 1837.60 - 474.91 - 500.55 103.90 -- 4.00 4.42 61.72 2498947.35 214171.89 Cry 4/100 2792.18 47.42 166.13 2230.07 2390.07 - 1024.79 - 1084.34 248.07 154.38L 0.00 4.79 61.72 2498360.23 214301.77 2800.00 47.14 165.94 2235.38 2395.38 - 1030.04 - 1089.91 249.46 154.25L 4.00 4.80 61.42 2498354.62 214303.02 2900.00 43.57 163.42 2305.64 2465.64 - 1094.35 - 1158.52 268.20 152.48L 4.00 4.86 57.58 2498285.57 214320.08 3000.00 40.05 160.55 2380.17 2540.17 - 1153.21 - 1221.91 288.75 150.34L 4.00 4.92 53.75 2498221.70 214339.08 3100.00 36.62 157.23 2458.61 2618.61 - 1206.33 - 1279.78 311.02 147.74L 4.00 4.97 49.94 2498163.31 214359.92 3200.00 33.30 153.35 2540.56 2700.56 - 1253.45 - 1331.84 334.88 144.55L 4.00 5.02 46.16 2498110.68 214382.51 3300.00 30.12 148.72 2625.64 2785.64 - 1294.35 - 1377.83 360.23 140.61L 4.00 5.06 42.40 2498064.08 214406.73 0 3400.00 27.14 143.15 2713.42 2873.42 - 1328.81 - 1417.54 386.95 135.72L 4.00 5.10 38.68 2498023.74 214432.46 3500.00 24.42 136.39 2803.48 2963.48 - 1356.68 - 1450.77 414.89 129.62L 4.00 5.13 35.02 2497989.84 214459.59 3600.00 22.07 128.17 2895.38 3055.38 - 1377.82 - 1477.36 443.94 122.07L 4.00 5.17 31.42 2497962.55 214487.97 3700.00 20.22 118.32 2988.67 3148.67 - 1392.13 - 1497.17 473.94 112.88L 4.00 5.20 27.92 2497942.01 214517.48 3800.00 19.01 106.94 3082.90 3242.90 - 1399.53 - 1510.12 504.74 102.16L 4.00 5.22 24.57 2497928.31 214547.96 Inversion Point 3900.00 18.57 94.57 3177.61 3337.61 - 1399.99 - 1516.14 536.21 90.44L 4.00 5.25 21.41 2497921.53 214579.27 4000.00 18.95 82.17 3272.33 3432.33 - 1393.51 - 1515.19 568.18 78.69L 4.00 5.28 18.57 2497921.69 214611.25 4100.00 20.11 70.69 3366.61 3526.61 - 1380.12 - 1507.30 600.50 67.87L 4.00 5.30 16.21 2497928.79 214643.75 4200.00 21.91 60.72 3459.99 3619.99 - 1359.88 - 1492.48 633.01 58.56L 4.00 5.33 14.56 2497942.81 214676.62 4300.00 24.23 52.38 3552.01 3712.01 - 1332.90 - 1470.82 665.55 50.89L 4.00 5.35 13.87 2497963.67 214709.68 4400.00 26.92 45.52 3642.22 3802.22 - 1299.30 - 1442.42 697.97 44.69L 4.00 5.38 14.29 2497991.27 214742.79 4500.00 29.89 39.87 3730.19 3890.19 - 1259.25 - 1407.42 730.11 39.72L 4.00 5.40 15.74 2498025.48 214775.77 4600.00 33.06 35.18 3815.48 3975.48 - 1212.95 - 1365.99 761.81 35.72L 4.00 5.43 17.95 2498066.12 214808.47 4700.00 36.37 31.24 3897.68 4057.68 - 1160.61 - 1318.33 792.91 32.48L 4.00 5.46 20.69 2498113.01 214840.73 4800.00 39.79 27.89 3976.39 4136.39 - 1102.50 - 1264.67 823.27 29.84L 4.00 5.49 23.78 2498165.90 214872.39 4900.00 43.30 24.99 4051.23 4211.23 - 1038.89 - 1205.28 852.74 27.67L 4.00 5.51 27.10 2498224.56 214903.29 5000.00 46.87 22.44 4121.82 4281.82 - 970.10 - 1140.44 881.17 25.87L 4.00 5.54 30.57 2498288.68 214933.30 5100.00 50.50 20.18 4187.84 4347.84 - 896.47 - 1070.47 908.42 24.38L 4.00 5.57 34.14 2498357.96 214962.25 0 5200.00 54.16 18.15 4248.95 4408.95 - 818.34 - 995.72 934.36 23.13L 4.00 5.60 37.79 2498432.06 214990.01 5300.00 57.85 16.29 4304.86 4464.86 - 736.11 - 916.54 958.87 22.09L 4.00 5.63 41.50 2498510.62 215016.45 D2 5396.25 61.43 14.64 4353.50 4513.50 - 653.45 - 836.50 981.00 21.26L 4.00 5.66 45.11 2498590.09 215040.52 5400.00 61.57 14.58 4355.29 4515.29 - 650.17 - 833.32 981.83 21.23L 4.00 5.66 45.25 2498593.25 215041.43 5500.00 65.31 12.99 4400.00 4560.00 - 560.93 - 746.47 1003.12 20.52L 4.00 5.69 49.03 2498679.56 215064.83 5600.00 69.06 11.49 4438.77 4598.77 - 468.85 - 656.40 1022.64 19.94L 4.00 5.72 52.83 2498769.12 215086.55 5700.00 72.83 10.06 4471.42 4631.42 - 374.36 - 563.57 1040.30 19.47L 4.00 5.75 56.66 2498861.49 215106.47 5800.00 76.60 8.69 4497.78 4657.78 - 277.92 - 468.41 1056.00 19.11L 4.00 5.78 60.50 2498956.23 215124.49 Target 1 5889.85 80.00 7.50 4516.00 4676.00 - 190.00 - 381.32 1068.39 -- 4.00 5.81 63.96 2499043.00 215139.00 D3 5889.91 80.00 7.50 4516.01 4676.01 - 189.95 - 381.26 1068.40 -- 0.00 5.81 63.96 2499043.05 215139.01 5918.65 80.00 7.50 4521.00 4681.00 - 161.67 - 353.20 1072.09 -- 0.00 5.81 63.96 2499071.01 215143.39 WellDesign Ver SP 2.1 Bld( users) leg Al slot 7\M- 10\1- 10PB1\M -10PB1 (P12) D3 pilot Generated 11/23/2009 2:54 PM Page 2 of 3 Measured Azimuth Vertical NS EW Mag 1 Gray Directional Zone Of Zone Of Comments Inclination Sub•Sea TVD TVD DLS Northing Easting Depth True Section True North True North Tool Face Difficulty Exclusion Exclusion (ft) (deg) (deg) (ft ) (ft ) (ft) (ft) (ft) (deg) (deg /100ft ) Index (deg) Alert (ftUS) (ftUS) 7" Csg 5918.70 80.00 7.50 4521.01 4681.01 - 161.62 - 353.15 1072.10 -- 0.00 5.81 63.96 2499071.07 215143.40 Drp 4/100 5938.65 80.00 7.50 4524.47 4684.47 - 141.99 - 333.68 1074.66 150.00R 0.00 5.82 63.96 2499090.47 215146.43 6000.00 77.88 8.75 4536.24 4696.24 -81.82 - 274.07 1083.17 149.76R 4.00 5.84 61.77 2499149.85 215156.40 6100.00 74.43 10.84 4560.18 4720.18 15.26 - 178.41 1099.68 149.26R 4.00 5.87 58.23 2499245.08 215175.24 6200.00 71.00 13.01 4589.88 4749.88 110.67 -85.01 1119.39 148.62R 4.00 5.89 54.72 2499337.98 215197.22 6300.00 67.60 15.26 4625.23 4785.23 203.95 5.69 1142.21 147.82R 4.00 5.92 51.27 2499428.09 215222.24 6400.00 64.23 17.62 4666.03 4826.03 294.65 93.24 1168.01 146.85R 4.00 5.94 47.87 2499514.98 215250.18 6500.00 60.91 20.12 4712.09 4872.09 382.33 177.22 1196.69 145.70R 4.00 5.96 44.55 2499598.23 215280.90 6600.00 57.63 22.79 4763.20 4923.20 466.56 257.21 1228.09 144.34R 4.00 5.99 41.33 2499677.43 215314.25 6700.00 54.41 25.66 4819.09 4979.09 546.92 332.82 1262.07 142.73R 4.00 6.01 38.22 2499752.19 215350.06 0 6800.00 51.27 28.76 4879.49 5039.49 623.04 403.69 1298.46 140.86R 4.00 6.02 35.26 2499822.15 215388.17 6800.81 51.24 28.79 4880.00 5040.00 623.63 404.25 1298.76 150.00R 4.00 6.02 35.24 2499822.70 215388.48 6900.00 47.84 31.46 4944.37 5104.37 694.49 469.52 1336.59 148.26R 4.00 6.04 32.06 2499887.03 215427.89 TD 6900.81 47.81 31.49 4944.91 5104.91 695.04 470.04 1336.90 - -- 4.00 6.04 32.04 2499887.53 215428.22 Survey Error Model: SLB ISCWSA version 24*** 3 -D 95.00% Confidence 2.7955 sigma Survevina Proq: MD From (ft) MD To (ft) EOU Freq Survey Tool Type Borehole -> Survey 0.00 345.00 1/100.00 SLB_ZERO -Depth Only M -10PB1 -> M -10PB1 (P12) D3 pilot 345.00 1345.76 1/100.00 SLB_NSG +SSHOT M -10PB1 -> M -10PB1 (P12) D3 pilot 1345.76 6900.81 1/100.00 SLB_MWD- STDAA1 M -10PB1 -> M -10PB1 (P12) D3 pilot Legal Description: Northing (Y) rftust Eastinq (X) must Surface : 4227 FSL 4816 FEL S33 T9N R13W SM • 2499450.29 214080.25 Target 1 : 3845 FSL 3749 FEL S33 T9N R13W SM 2499043.00 215139.00 BHL : 4697 FSL 3479 FEL S33 T9N R13W SM 2499887.53 215428.22 WellDesign Ver SP 2.1 Bid( users) leg Al slot 7\M- 101M- 10PB1'M -1OPB1 (P12) D3 pilot Generated 11/23/2009 2:54 PM Page 3 of 3 Chevron %. Schlumberger , %0 P16 � ) Pro M -10 osal Proposal Date: November 23, 2009 Survey / DLS Computation Method: Minimum Curvature / Lubinski Client: Chevron Vertical Section Azimuth: 10.000° Field: Trading Bay Unit Vertical Section Origin: N 0.000 ft, E 0.000 ft Structure 1 Slot: Steelhead / leg Al slot 7 TVD Reference Datum: Rotary Table Well: M -10 1 11 23 TVD Reference Elevation: 160.0 ft relative to Mean Sea Level Borehole: M -10 prove Sea Sea Bed / Ground Level Elevation: - 185.000 ft relative to Mean Sea Level API. UWI /API#: 50733xxxxx00 p Magnetic Declination: 18.387° Survey Name / Date: M -10 (P16) D3 sand / November 23, 2009 Total Field Strength: 55539.868 nT Tort 1 AHD / DDI / ERD ratio: 181.947° / 4593.80 ft / 6.121 / 0.967 Magnetic Dip: 73.638° Grid Coordinate System: NAD27 Alaska State Planes, Zone 04, US Feet Declination Date: December 23, 2009 • Location LatiLong: N 60.83178787, W 151.60239696 Magnetic Declination Model: BGGM 2009 Location Grid NIE Y/X: N 2499450.290 ftUS, E 214080.250 ftUS North Reference: True North Grid Convergence Angle: - 1.39928826° Total Corr Mag North -> True North: +18.387° Grid Scale Factor: 0.99999302 Local Coordinates Referenced To: Well Head Measured Azimuth Vertical NS EW Mag /Gray Directional Zone 0f Zone Of Comments Inclination SubSeaTVD TVD DLS Northing Easting Depth True Section True North True North Tool Face Difficulty Exclusion Exclusion (ft) (deg) (deg) (ft) (ft) (ft) (ft) _ (ft) ( deg) (deg/100 ft) Index (deg) Alert (ftUS) (ftUS ) Drp 6/100 5938.00 80.00 7.50 4524.36 4684.36 - 142.63 - 334.31 1074.58 40.57R 0.00 5.82 63.96 2499089.84 215146.34 6000.00 82.83 9.94 4533.61 4693.61 -81.35 - 273.72 1083.87 40.20R 6.00 5.84 66.66 2499150.18 215157.11 6100.00 87.43 13.81 4542.10 4702.10 18.19 - 176.26 1104.38 39.87R 6.00 5.88 71.12 2499247.11 215179.98 End Cry 6113.40 88.05 14.33 4542.63 4702.63 31.55 - 163.27 1107.63 - -- 6.00 5.88 71.73 2499260.02 215183.56 TD / 4 -1/2" Screen 7503.19 88.05 14.33 4590.00 4750.00 1416.57 1182.51 1451.32 -- 0.00 6.12 71.73 2500597.00 215560.00 Survey Error Model: SLB ISCWSA version 24*** 3 -D 95.00% Confidence 2.7955 sigma Surveying Prog: MD From (ft) MD To ( ft) EOU Freq Survey Tool Type Borehole -> Survey 0.00 345.00 1/100.00 SLB_ZERO -Depth Only M -10PB1 -> M -10PB1 (P12) D3 pilot 345.00 1345.76 1/100.00 SLB_NSG +SSHOT M -10PB1 -> M -10PB1 (P12) D3 pilot 1345.76 5938.00 1/100.00 SLB_MWD- STDAA1 M -10PB1 -> M -10PB1 (P12) D3 pilot • 5938.00 7503.19 1/100.00 SLB_MWD- STDAA2 M -10 -> M -10 (P16) D3 sand Legal Description: Northing (Y) fftUSl< Eastinq (X) fftUSI Surface : 4227 FSL 4816 FEL S33 T9N R13W SM 2499450.29 214080.25 Target 1 : 3845 FSL 3749 FEL S33 T9N R13W SM 2499043.00 215139.00 TD / BHL : 129 FSL 3363 FEL S28 T9N R13W SM . 2500597.00 215560.00 WellDesign Ver SP 2.1 Bld( users) leg Al slot 7\M- 10\M- 10 \M-10 (P16) D3 sand Generated 11/23/2009 3:11 PM Page 1 of 1 Chevron • Schlumberger , WELL FIELD I STRUCTURE M -10PB1 (P12) / M -10 (P16) Trading Bay Unit S Magnetic Parameters Surface Location NAD27 Alaska Stale Planes. Zane 04, US Feel 3wus Model: BOOM 2009 Dip: 73.535' Dale: December 23, 2009 Tat: N60 49 54.436 Walling: : 2499160.29 SUS Grid Com: - 139928826' Scl: M6 36., leg Al Not 7 TVD Re7 RoNN Table (16000 ft above Mean Sea Level) Ma9 Dec: 418.387' FS: 55539.9 nT Lon: W15136 3.629 pasting: 214080.2511US Scale Fad: 0.9999930249 Plan: M -10 (P19) 03 sand Srvy Date: November 23, 2009 -1600 -800 0 800 1600 0 RTE 0 MS yy�� Mud Line KOP Bld ' � L Bid 31100 800 800 End Bid 13318" Cs Cry 41100 6 1600 1600 End Cry Cry 4/100 0 co 2400 2400 c ' a1 co to 0 3200 3200 Inversion Poiot 4000 4000 7" Cs. Target 1 4 /9 61100 TD I -112" Screen • 1 End Cry • 4800 ,1n1P1e1D3sand........ 4800 Orp 4/100 TD M -10PB1 (P12) D3 pilot 5600 5600 -1600 -800 0 800 1600 Vertical Section (ft) Azim = 10 °, Scale = 1(in):800(ft) Origin = 0 NI -S, 0 El -V Chevron • • %/0 %. .7 Schlumberger WELL M -10PB1 (P12) / M -10 (P16) I FIELD Trading Bay Unit I S RUCNRE Steelhead I M a9nalr Pararrete2 Dip Surface Location N Mae State Planes, Zone 04, US Feet I Misallaneous Model: BGGM2009 ]3.638' Date: December 23, 2009 Let: N604954.436 Northing: 249945099450 .29 SUS Grid Com:- 1.39928825' Slot b9 Rl slot) TVD Ref Rotary Tattle (160.0011.. Mean Sea Level) Ma9 Den'. ~1838)' FS: 55539.9 nT Lon'. W151355.639 08009: 210050.251tUS Scale Fact: 09999930245 Plan. M -10 (P15) D3 sand S. Date: Nevemba 23,2009 0 400 800 1200 1600 1200 TD / j4/2•• Screen ' .................. 1200 10 >Jijl�>D36and N V IIII'I 800 800 -10PB1 (PT2) D3 pilot 400 400 • TD A A A RTE Z 28" Conductor 0 0 • KOP Bld 1.51100 0 0 Bid 3/100 End Bid C a . • 13-318" Csg Cry 4/100 prp 6/100 End Cm 11 N Dip 4/100 U F Cs• - 400 Target 1 400 CO V V End Cry V • -800 -800 • Cry 4/100 i • -1200 -1200 -1600 inversion Point -1600 0 400 800 1200 1600 c« W Scale = 1(in):400(ft) E »> Chevron • Schiumberger M -10PB1 (P12): M -10 (P16) Trading Bay Unit I `"" ° Steelhead ewe s s+.a s ur.. mac. ...M. r np sm.. ........ 's «warms., asp. nsi• ra sawn a w-). /um sr. name/ arw.asao I. /yYm.. ale. sra..i. -20 -10 0 10 20 ' , • I 1•, . 14 s 2C,_ 1 m ' FYI -2f1 '�n e nb ,a- v t � to ^ C — �Al I __ �_' , 1'!101► 0 Z t M-13 h 3/4 ,pq� • `,, of Z Ilik a) c . cn no, kw, v -2c — f i. �9 RD ll■ 4 , A il• -3C _. _ -30 • nrrn cr -40 ••, Ow 40 r14 1 M-15 ST 17 M- 1 -20 -t0 0 10 � 2ff «< W Scale = 1(in):1a1t) E »» Chevron • • %. %0 Schlumberger I -" M -10PB1 (P12) / M -10 (P16) I "' Trading Bay Unit 1 Magnetk: Panrneters 2009 t I SuRaw Location .1327 Alaska Slale Planes, Zone 00, US Feat I M6cellaneoas Model: BGGM Dq: Date: December 23, ]009 Let: Neo 0954 038 Northi g: 2 /99150.29 (1115 GM Cony: - 1.39928838' ' S b9 Al slot ] 1VD Ref: Rotary Table (160 003 above Mean Sea Lever) Mag Dec: + 835]' Fs: 55539.9 nT Lon: 71 38 B 829 Ea.. 214060 25 WS Scale Fact: 0990993030.5 Plan: MAO (P16)03 sand Srvy Dale: December 23, 2009 -400 0 400 600 1200 1600 ■ -21R E4 ♦ - 3,at •' i s 5;1, � '� '' : ' ;r':"401 1x M-27 M 27 120 . 4 l ' Irv' T•,fir : I : N o , 2 — 1200 IV V c 6 5 r . r : , M (P16) D3 sand • ■ s r. [ / y S ao o -03 ,L I , ` '' a i. . . .__..I � � . � • 800 „or 800 — o _ *. r ,,°°‘ RD � s`�r' ; � � • • 11* eys •,,„ 4 . .„.o, 9' �' s a . ,,,,, ,„ kill.. G-14ARD 400 – zz } , . �� �.. '� ` 11 .B1 (P12) C3 pil ./... 2 / j : , 44.!,14 ?At ill • • A cls I I `y . . ., . 95 00 t • i d ,p I I - • �5� , Y \ )1110L � G -08 M e5� • • z000 .too il -400 \ 5p -_ � ; i 400 a) D � G - 30 • 55 � in . Z„” G -08RD 45, a 3R 9• =Soo ., -0 T � . . Z o o V -800 — ' • • -)Ir Tw 45,0,...„D. 1 -800 .:will ' ` .,A°O' ,goon .,„ . Q� -12RD3 lk -1200 —.. s� - •�' 1 • 0 ',' . soon ' . ap 0° * r � i , DID . C ' * � M -1 o 40° 00 V , -12RD2 G -u3 • -1600 1 -1600 4000 ! '.900 , , Mil 7 • 8500 TV - • 8000 TVD M -! 4RD • 3500TVD G -23 1 G -23RD M -02 G -36DPN -400 0 400 800 1200 1600 «< W Scale = 1(in):400(ft) E »> • • A UL 1 r 0. 11 GRAYLING M -10 Prop ADL0187 STEELHEAD �� z r �, iii o. t ADL018 a � _ r AD L0175 7 McAr River Field 0 1,000 2,000 Union Oil Company Steelhea Platform ' Feet NNW of California M -10 Proposed Alaska State plane Zone 4, NAD27 November 19, 2009 Chevron Steelhead Platform Well M -10 Drilling Program 2009/2010 M -10 Cement Calculations Surface Casing &)1- �e�l i�r . ! 3 L �` f 13 3/8 ", 68 ppf, Surface Casing in 17'/2" Hole, Stage 1 V = L « ) r .3 5 - z — = z z T S 6 11 Cement from section TD at 1401' to the ECP stage tool a 489' OH Volume w/ 100% excess = (1401- 480) *0.1237 *�= 227.9 bbls Shoe Track Volume = 80 *0.149 = 12.0 bbls Stage 1 Total Volume = 228 +12.0 = 240 bbls of 13.0ppg and 14.0 ppg class G cement slurry 13 3/8 ", 68 ppf, Surface Casing in 34 OD x Various ID Structural Pile Conductor, Stage 2 Cement from 480' to surface (ECP is 10' long) _ , [La. j ` (� = C )1 6h9c;') 3 LI Annular Volume' = 480 *0.7005 = 336 bbls Stage 2 Total Volume = 336 bbls of 13.0 ppg class G cement slurry Notes: 1 Used 0" ID as average for volumetric calculations. Chevron 1010 Steelhead Platform Well M -10 Drilling Program 2009/2010 Intermediate Casing 7 ", 26 ppf, Intermediate Casing in 9' / "Z ole Stage 1 T �?� ���-� (1,$) i L/ s Cement from section TD at- 6-1-56' to 4100' (Stage collar) - - -- OH Volume w%400 excess = 64100)*0.0355*1.45 = 86.1 bbls Shoe Track Volume = 80 *0.0383 = 3.1 bbls Total Volume, Stage 1 = 86 + 3 = 89 bbls of 14.0 ppg Class G Slurry 7 ", 26 ppf, Intermediate Casing in 9 '/4" Hole, Stage 2 = 0 ° b \` Cement from stage collar at 4100' to ML at 45' • OH Volume w/K5,% excess = (4100- 1401) *0.0355 *1.45 = 138.9 bbls , Z 4� s `1 Cased Hole Volume = (1401 - 345) *.104 = 109.8 bbls v ( i) - 011) ( °54) 01 g I) ( Total Volume, Stage 2 = 140 + 110 bbls = 250 bbls of 13.0 ppg Class G Slurry • • '� Chevron Maximum Anticipated Surface Pressure Calculation Steelhead Platform Well M -10 Cook Inlet, Alaska Assumptions: 1. Based on offset drilling & well test data, the pore pressure gradient is predicted to be a 0.440 psi /ft gradient (8.7 EMW) from surface to planned total depth at 4785' ND BRT. 2.The 17' " surface hole will be drilled to approximately 1450'/1410' MD /TVD under an existing structural pile conductor and will use a diverter system for well control. The diverter system is not designed to shut the well in and contain pressure. Therefore, MASP is 0 psig for this hole section. 3. The M.A.S.P. during drilling operations will be governed by pore pressure at TD. The calculations take into account a gas gradient to surface of .1 psi /ft. The intermediate hole section will be drilled to a deeper TVD (Pilot Hole) to evaluate target sands. After evaluation a target sand will be chosen (D -3B or D -2) to drill a horizontal leg. The MASP is being calculated from the deepest expected ND of the pilot hole. 4. The M.A.S.P. during production operations will be the estimated SIBHP minus the gas hydrostatic pressure between TD & the surface. 17.5" Hole Fracture Pressure Conductor (470 ND): Max. Est. Frac pressure at KOP = 470 ft. x 0.000 psi /ft = 0 psi M.A.S.P. from pore pressure: Max. pore pressure at T.D. = 1,374 ft. x 0.440 psi /ft = 605 psi M.A.S.P. (tbg leak at surface) = 620 psi - (0.1 psi /ft * 1230 ft) = = 483 psi 9.25" hole Fracture Pressure at Casing Shoe (1410' TVD) Max. Est. Frac pressure at 13 3/8" shoe = 1374 ft. x 0.866 psi /ft = 1190 psi M.A.S.P. from pore pressure: Max. pore pressure at T.D. = 6,204 ft. x 0.440 psi /ft = 2730 psi M.A.S.P. (tbg leak at surface) = 2730 psi - (0.1 psi /ft * 4550 ft) = = 2109 psi 6 1/8" Hole Fracture Pressure at Casing Shoe (4685' ND) Max. Est. Frac pressure at 7" shoe = 4685 ft. x 0.866 psi /ft = 4057 psi M.A.S.P. from pore pressure: Max. pore pressure at T.D. = 4,785 ft. x 0.440 psi /ft = 2105 psi M.A.S.P. (tbg leak at surface) = 2105 psi - (0.1 psi /ft * 8756 ft) = = 1627 psi Calculation & Casing Design Factors Chevron Steelhead Platform M -10 Cook Inlet, Alaska WELL: M -10 FIELD: Trading Bay Field DATE: 18 -Nov -09 DESIGN BY: Tim Flynn Sect. 1 17.5" hole MUD WT. 9.20 PPG MASP= 0 psi Sect. 2 8.3/4" hole MUD WT. 9.20 PPG MASP= 2109 psi Sect. 3 6 1/8" hole MUD WT. 9.20 PPG MASP= 1627 psi Production Mode TENSION MINIMUM COLLAPSE COLLAPSE WEIGHT TOP OF STRENGTH PRESS @ RESIST. — MINIMUM 1 DESCRIPTION W/O BF SECTION TENSION WORST CASE BOTTOM w/o TENSION WORST CASE MASP YIELD WORST CASE • SECTION CASING BOTTOM TOP LENGTH WT. GRADE THREAD LBS LBS 1000 LBS SF TENSION PSI* PSI SF COLL. PSI ** PSI SF BURST 1 13.375" 1,450 0 1450 68 L -80 Butt 98,600 98,600 1556 15.78 637 2,260 3.55 1,221 5,020 4.11 TVD 1,410 0 3 7" ,40 ,6'/ 0410 ' 0 7600 26 L -80 Hyd 197,600 197,600 604 3.06 2,163 5,410 2.50 1,636 7,240 4.43 ND - 4,785 * Collapse pressure is calculated; Normal Pressure Fluid Gradient for external stress (.437 psi/ft) and the casing evacuated for the internal stress (.1 psi/ft) ** See attached sheet for calculation of MASP • • Formation Integrity Test (FIT) and Leak -Off Test (LOT) Procedures Note that the terms used in the procedures and the spreadsheet of FIT /LOT results are defined as follows: • Formation Integrity Test (FIT) - Formation is tested to a pre - determined equivalent mud weight. • Leak- Test (LOT) - Pressure is exerted against the formation until fluid begins to discek�jr pump away. Pressure at which this first occurs is the leak -off point. • LOT Limit - 16.0 ppg EMW for all surface casing shoe tests; determined from previous experience with formation breakdown problems by attempting higher leak -offs. • Open Hole LOTs (OH LOTs)- Leak -off tests performed with open hole from the casing shoe to some point above the target reservoir. Generally done when leak -off is required but could not be achieved just below the casing shoe; or where weaker formations are suspected above the target reservoir but below the casing shoe, and assurance is required of being able to achieve estimated mud weight. Procedure for FiT: 1. Drill 20 of new hole below the casing shoe. 2. Circulate the hole to establish a uniform mud density throughout the system. P/U into the shoe. 3. Close the blowout preventer (ram or annular). 4. Pump down the drill stem at 1/4 to 1/2 bpm. 5. On a graph with the recent casing test already shown, plot the fluid pumped (volume or strokes) vs. drillpipe pressure until appropriate surface pressure is achieved for FIT at shoe. 6. Shut down at required surface pressure. Hold for a minimum 10 minutes or until the pressure stabilizes. Record time vs. pressure in 1- minute intervals. 7. Bleed the pressure off and record the fluid volume recovered. The pre - determined surface pressur, for each formation integrity test is based on achieving an EMW at least 1.0 ppg higher than the estimated reservoir pressure, and allowing for an appropriate amount of kick tolerance in case well control measures are required. Formation integrity tests are conducted on all casing shoes with the exception of some - surface casing situations. Where annular pumping will be done on a well, the formation below the surface shoe is taken to leak -off. This ensures that future disposal fluids can pumped away without risk of damage to the surface shoe. If two attempts at establishing leak -off at the shoe are unsuccessful (using 16.0 ppg EMW LOT limit per definition above), then an open -hole LOT is performed. Where required, the LOT is performed in the same fashion as the formation integrity test. Instead of stopping at a pre - determined point, surface pressure is increased until the formation begins to take fluid; at this point the pressure will continue to rise, but at a slower rate. The system is shut in and pressure monitored as with an FIT. it -18 20 3/4" BOP / Diverter Stack up • i r 21 1/4" 2M Hydril Annular 4.22' I I HUB CLAMP I 20 3/4" 3 M Hydril DBL Gate Pipe Rams 4 .71' 20 3/4" 3M Bli R ams 1 1 I HUB CLAMP 20 3/4" 3M ucis Mud Cross 2.00' HUB CLAMP I I 20 3/4" 3M Single Gate 2.71' I HUB CLAMP 6" Ansi 600 Diverter Valves 20 3/4 3M 2.00 NT2 Connector XO Diverter Spool 3.00' 203/43MNT2 ------ a t,t41��1e, Connector I ,n, 1 20 3/4" 3M Riser 20 3/4" 3M Riser VETCO 20 3/4" NT2 Connector VETCO NT2 HEAD 6" ANSI 600 RTJ • 1 . CHOKE MANIFOLD TO GAS BUSTER TO DERRICK VENT TO SHALE SHAKERS A ! i . UI • d 4. :A7,1*-.6_ : ■••; ) ' • ; .: -. Tt 1 - [........ma . . .. CI ( :11 - • rat .■ - ammo . . El -------- 1E1 -----1.- i ln • • . . Asa s� ; � s� m. -� . t - .r` jam' -- __ MI 0 II OA" r _ 1 • .] I - 4-■- '7 ; , • MINN lid so , _� 1 . � i��t Np� Y• � C I iitklii 1� J �� i ir2411 li • Orl I ; .� I SWACO S `_�� } u CHOKE LINE A SECTION AA * ALL VALVES IN FLOW PATH ARE 3 -1/16' 5000 PSI CAMERON GATE TYPE • • • TRANSMITTAL LETTER CHECKLIST WELL NAME Trading Bay Unit M -10 PTD# 2091540 X Development Service Exploratory Stratigraphic Test Non - Conventional Well FIELD: McArthur River POOL: McArthur River, Middle Kenai Gas Pool 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 , Permit No. (If last two digits in API No. . Production should continue to be API number are reported as a function of the original API number stated above. between 60 -69) PILOT HOLE In accordance with 20 AAC 25.005(f), all records, data and logs acquired for the pilot hole must be clearly differentiated in both X well name (Trading Bay Unit M -10 PH) and API number (50- 733- 20588 -70) from records, data and logs acquired for well Trading Bay Unit M -10. SPACING The permit is approved subject to full compliance with 20 AAC EXCEPTION 25.055. Approval to perforate and produce / inject is contingent upon issuance of a conservation order approving a spacing exception. assumes the liability of any protest to the spacing exception that may occur. DRY DITCH All dry ditch sample sets submitted to the Commission must be in SAMPLE no greater than 30' sample intervals from below the permafrost or from where samples are first caught and 10' sample intervals through target zones. Non - Conventional Please note the following special condition of this permit: Well production or production testing of coal bed methane is not allowed for (name of well) until after (Company Name) has designed and implemented a water well testing program to provide baseline data on water quality and quantity. (Company Name) must contact the Commission to obtain advance approval of such water well testing program. Rev: 1/11/2008 WELL PERMIT CHECKLIST Field & Pool MCARTHUR RIVER, MIDKENAI GAS - 520550 Well Name: TRADING BAY UNIT M -10 Program DEV Well bore seg ❑ PTD #: 2091540 Company UNION OIL CO OF CALIFORNIA Initial Class/Type DEV / PEND _GeoArea 820 Unit 12070 On /Off Shore On Annular Disposal ❑ Administration 1 Permit fee_attached NA 2 _Lease number appropriate Yes Corrected 10 -401:. only_affected_lease is ADL 18730, which contains the entire wellbQre. 3 Unique well name and number Yes 4 _Well Jocated in a defined pool Yes MCARTHUR RIVER, MIDKENAI GAS - 520550, governed by_CQ 228_and arnended_by CO.228.02 5 Weill Jocated proper distance from drilling unit boundary Yes Rule 1 of CO 228 established 10 -acre drilling units for the pool et the D -1_ sand, which Iles at the vertical 6 Well Jocated proper distance from other wells Yes mid -point of the pool because of the_lenticular nature of the reservoir sands, well_will_conform to the. 7 Sufficient acreage available in drilling unit Yes spacing requirements, 8 If deviated, is welibore plat included Yes 9 Operator only affected party Yes 10 Operator has appropriate bond in_force Yes 11 Permit can be issued without conservation order Yes Appr Date 12 Permit can be issued without administrative approval Yes S F D 12/1/2009 13 Can permit be approved before 15- day_walt Yes 14 Well Jocated within area and strata autharized_ by injection _Order # (put 1Q #in.comments).(For NA • 15 All wells within 1/4 mile area of review ldentified_(For service well only) NA 16 Pre- produced_injector: _duration of preproduction less than 3months (For service wellonly)_ NA 17 _Nonconven._gas conforms to AS31,Q5,030(1,t .A).(j.2.A -D)_ NA 18 Conductor string provided Yes 28" - 32' 0 4$0'. Engineering 19 Surface casing .protects All known USOWS Yes 20 ClvtT_vol adequate to_clroulateon conductor_& surf csg Yes Adequate excess. 21 CMT_voladequate to tie in_ long string to surf csg Yes 22 CMT_will cover all known productive horizons No Production screen. 23 Casing designs_ adequate for C. T, B_& permafrost Yes Adequate safety factors. 24 Adequate tankage or_reserve pit Yes Steelhead rig. 25 Ifa_re- drill, has a 1 -403 for_abandonment been approved NA New well. 26 Adequate welibore separation_proposed Yes 27 _Ifdiverter required, does_it_meet regulations Into Vent line variance, Appr Date 28 Drilling. flutd_program_schematic8 equiplist adequate Yes Max_ MW9.3_ppg. WGA 12/4/2009 29 BOPEs, do they meet regulation No 2k_annular;_3krams 30 BOPE press rating_appropriate;_test to_(put psig in comments) Yes MASP 2109 psi;.test annular to 1 Q00 psi,. rams to 3000 psi, • 31 Choke_manifold_complies w /AP[ RP -53 (May 84) Yes 5k manifold. 32 Work will occur_without operation_shutdown Yes 33 Is presence of H25. gas probable Yes H2S measures required. 34 _Mechanical condition Of wells within AOR verified (For _service well only) NA 35 Permit car) be issued w/o hydrogen sulfide measures No Steelhead Is a designated H23 site._ Measures are required. Geology 36 Data_presented on potential overpressure zones Yes Significant under pressure is_expected._ Drilling hazards summary_ discusses mitigationmeasures, Appr Date 37 Seismic analysis of shallow gas zones NA Developmentweil,_but drilling hazards summary discusses_likelihood of_shallow gasand mitigation SFD 12/1/2009 38 Seabed conditiQn_survey Of off - shore) NA measures. 39 Contact name /phone_for weekly progress reportsjexploratory only] NA Geologic Engineering Public Commissioner: Date: Commissioner° Date Commissioner Date C4 -p - /2 -9 • 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. MEOW • Schlumberger Date: Feb 02, 2010 Well Name: M -10PB1 / M -10 Company: Chevron API Number: 50- 733 - 20588 -70 / 00 AFE Number: UWDAK D0001 DRL Field: Cook Inlet / Trading Bay Uni Rig: Nabors 51 a 5 q /96 End of Well Report I Drilling & Measurements Prol,moti. t s.. .tta. 711111imor- =4, • 0 $chlumberger Table of Contents Well Data Section 1 Well Summary and Lessons Learned Section 2 BHA Sheets Section 3 Slide Sheets Section 4 Directional Surveys Section 5 Directional Plots Section 6 Time vs Depth Curve Section 7 KPIs Section 8 MWD Depth Control Reports Section 9 • Schlumberger Section 1 Well Data M -10P61 and M -10 • • Schlumberger General Well Information Well Name M -10PB1 and M -10 Well Type Pilot hole / Horizontal Client Chevron Field Trading Bay Unit Location Steel head Rig Nabors 51 Job # 40019950 AFE # UWDAK D0001 DRL API # 50- 733 - 20588 -70 / 00 Directional Drilling Company Schlumberger D &M MWD /LWD Company Schlumberger D &M Mud Company Baroid RKB Elevation 160' Drilling & Measurements - Services Provided Service Start Date Start Depth End Date End Depth Comments Directional Drilling 04- Jan -10 375 07- Feb -10 7520 Mud Motors 08 -Jan -10 480 09- Jan -10 1442 PcwerDrive RSS 13- Jan -10 1442 07- Feb -10 7520 MWD / GR 04- Jan -10 375 28- Jan -10 5800 LWD ARC6 04- Jan -10 375 28- Jan -10 5800 LWD ADN6 13- Jan -10 1442 28- Jan -10 5800 tern 13 , 40 1442 07-Fcb-10 10 PYVU 13-Jan-10 1442 V� -I liU - f 7520 Impulse MWD 02- Feb -10 5800 07- Feb -10 7520 ADN4 02- Feb -10 5800 07- Feb -10 7520 Drilled Hole Sizes Hole Size Start Date Start Depth End Date End Depth Comments 17 1/2 07- Jan -10 375 09- Jan -10 1442 surface hole 9 1/4 13- Jan -10 1442 18- Feb -10 6940 intermediate pilot hole 9 1/4 23- Jan -10 4050 28- Feb -10 5800 Open hole ST at - 4050'md 6 1/8 02- Feb -10 5800 07- Feb -10 7520 production horizontal Casing / Liner Program Mud Program Size & Wt. Top Bottom Type Start Depth End Depth 30" Conductor 0 490 Spud 375 1442 13 3/8" 68# 0 1402 KCL Polymer 1442 5800 7" 26# 0 5790 Baradril -n 5800 7520 Personnel Miscellaneous Information Lead DD Mike Jeude Formation Targets D2 Sand 2nd DD's Marty Rinke Proposed Azimuth 10 Lead MWD's Arina Shulyatieva Magnetic Declination 18.387 2nd MWD's Steven Fell Mag. Dec. Date 23- Dec -10 Survey Corrections MS, 1FR, SAG Drlg Engineer Tim Flynn Whip Stock/Window N/A CO. Men Shane Hauck , Mike Leslie CO. Men Sam Menapace • Danny Haynes Spud @ Date Time 08- Jan -10 03:00 Tool Pusher's Eric Burchard,Rick Brumley TD @ Date Time 06- Feb -10 21:00 Tool Pusher's Allan Lunda , Tony Well - Total Days 29.75 Days I Scblumberger Section 2 Well Summary and Lessons Learned M -10PB1 and M -70 • • Schlumberger BHA Run Summaries Lessons Learned Well: M -10PB1 and M -10 Client: Chevron Rig: Nabors 51 Job Number: 40019950 DD's: Mike Jeude, Marty Rinke, Ted Nevile 17 '/Y" Surface Hole BHA 1 (110'to 480'MD) Cleanout Run The objective of the run was to deanout the conductor. The BHA was a 17 W Hughes GTS -C1, bit sub, 17 stabilizer, 3 NMDC, XO, HWDP. This objective was accomplished. BHA 2 (480' 1442'MD / 480' 1411'TVD) Drilling Run The objective of the run was to build at 3 °I100 to the 13 3/8" casing point. This objective was accomplished. The BHA was a used 17 Hughes GTS -C1, 1.5° PDM, 16" stabilizer, Gyropulse, MWD, ARC, 17 stabilizer, 3 NMDC, XO, 18 HWDP. This assembly generated the required 3 °/100 with 50% sliding. After reaching 600' all slides were picked up above and reamed down with out any effect on our DLS. Once we were clear of any close approaches the survey interval was increased to 100'. The average ROP was 104 ft/hr. This was the 6 rerun for this bit. It was graded 2- 2- WT- S- IN- E- NO -TD. There is a fairly strong right hand walking tendency in the surface holes here. The trip out of the hole was without any problems. The 13 3/8" casing was cemented 40' off bottom due to not being able to wash it down any farther. It was cemented without problems. 9 1/4" Intermediate Hole BHA 4 (1442'- 1462'MD 1 1411'-1430'TVD) Drilling Run The objective of the run was to drill the float equipment and 20' of new hole for the FIT with a. This objective was accomplished. The BHA was a used 12 XR +C, bit sub, NMDC, 12 stabilizer, 2 NMDC, XO 18 HWDP. When we got the bit out of the hole it was discover that all three cones had been locked up while drilling the float equipment as there were flat spots on all three of them. There was not locking them up when we got out of the hole. We are thinking that while drilling the Davis Lynch cementer something got caught between the cones and locked them up as it took quite a bit to drill through it and the float equipment. Page 1 of 5 • BHA 5 (1462'- 5740'MD / 1430'- 4646'TVD) Drilling Run The objective of the run was to do the 4 °/100 curve to the casing point. This objective was not accomplished due to the bit wearing out. The BHA was a Smith MSi616 with 6 x 13's, Xceed 675, ARC, MWD, ADN675, 9 1/8" stabilizer, 1 NMDC, 6 HWDP, 6 1/2" jars, 11HWDP. The drilling parameters were 120 to 160 RPM, 5 to 12K WOB, and 650 to 750 GPM. The 4 °/100 was accomplished for the most part with a 60% setting on the Xceed. The DSL did not fall off until the bit dulled. The Xceed tool would generate DSL right at the programmed toolface. It did this even though it was only getting a good survey every or or 6th survey. So there was no issue with the angle X. Towards the end of the run it was down linked to get its angle X from the MWD as a precaution. A short trip was made at 4500'. It was made on elevators with a few minor tight spots. The trip out for the bit was also made on elevators. On surface the stabilizer above the ADN675 was worn down to 8 1 /8 ". The Xceed stabilizers showed no wear it was rerun on the next BHA. The average ROP for the run was 98 ft/hr. The bit was graded 6- 4- CR- C- X- I- WT -PR. BHA 6 (5740'- 6940'MD) Drilling Run The objective of the run was to do the 4° /100 curve TD. This objective was accomplished. The BHA was a Smith MSi616 with 6 x 13's, Xceed 675, ARC, MWD, ADN675, 9 1/8" stabilizer, 1 NMDC, 6 HWDP, 6 1/2" jars, 11HWDP. The drilling parameters were 120 to 160 RPM, 5 to 12K WOB, and 650 to 750 GPM. The Xceed generated the required DSL with out any problems. A setting of 60% gave around 4 DLS while dropping angle. After the run all stabilizers came out with the same OD as they went in with. The D3 sand did not look that good so the decision was made to cement the well back and do the D2 lateral. The average ROP for the run was 63 ft/hr. The bit was graded 1- 1- CT- N- X- I- ER -TD. BHA 7 (4236'- 6940'MD) Cement Run BHA was used to set four cement plugs for the D2 sidetrack. BHA 8 (4236'- 4236'MD) Drilling Run The BHA was a Smith MSi616 RR1 with 6 x 14's, Xceed 675, ARC, MWD, 9 1/8" stabilizer, 1 NMDC, 6 HWDP, 6 1/2" jars, 11 HWDP. The drilling parameters were 80 to 100 RPM, 2 to 6K WOB, and 650 to 750 GPM. Cement wasn't set. POOH to re- cement. The bit was graded 1- 1- CT- N- X- I- ER -TD. BHA 9 (4000' - 4660'MD) Cement Run BHA was used to set cement plugs for the D2 sidetrack due to bad cement on last plug of BHA 7. BHA 10 (4043' - 4438' MD) Drilling Run The objective of the run was to kick off a cement plug and land in the D2 sand with 5 DLS. This objective was not successful. Page 2of5 • 1 • The BHA was a Smith MSi616 RR2 with 6 x 14's, Xceed 675, ARC, MWD, 9 1/8" stabilizer, 1 NMDC, 6 HWDP, 61 /2" jars, 11 HWDP. The drilling parameters were 120 to 160 RPM, 5 to 12K WOB, and 650 to 750 GPM. The Xceed tool started out with the tool in neutral to drill the cement plug, which it rotated off of while in neutral. Tool was then put into HS @ 70% for 44' to make sure we were off of plug. The next command was 84L @ 90% 1 stand, this DLS was a 2.88. After the survey the tool was put into 72L @ 100% and monitored. Next survey showed a 4.86 DLS and we needed 6 DLS to land at this point. TOOH for insufficient DLS, no other PDC bit was available so the decision was made to pick up a motor and mill tooth bit. The average ROP for the run was 77 ft/hr. The bit was graded 2- 2- WT- A- X -I -CT -BHA BHA 11 (4438'- 5105' MD) Drilling Run The objective of the run was to land in the 02 sand with 6 DLS. This objective was not successful. The BHA was a Smith FDS+ with 3 x 18's, PDM 7:8 -5.0, 9 1/8" stabilizer, ARC, MWD, 1 NMDC, 6 HWDP, 6 1/2" jars, 11 HWDP. The drilling parameters were 50 to 60 RPM, 8 to 22K WOB, and 580 GPM. BHA was giving desired response and larger DLS than expected, however around 5075' the BHA started to torque while rotating and would not slide, and showed no differential getting to the bit while sliding. The ROP dropped off while rotary drilling however we did have differential pressure. The decision was made to make a wiper trip and see if it was a hole cleaning issue. Two tight spots were found on the trip resulting in back reaming. First one was 4752' which had a DLS between 6.7 and 6.8. The second one was from 4580' to 4536' which is where the 9.0 DLS from the initial motor slide was located. On the trip in and following trip it was not a problem. The average ROP for the run was 37 ft/hr. The bit was graded 4- 3- WT- 3- E- 2- ER -ROP BHA 12 (5105' -5684' MD) Drilling Run The objective of the run was to land in the D2 sand with 5 DLS. This objective was not successful. The BHA was a Smith MSi616 RR3 with 6 x 14's, Xceed 675, ARC, MWD, 9 1/8" stabilizer, 1 NMDC, 6 HWDP, 6 1/2" jars, 11HWDP. The drilling parameters were 120 to 140 RPM, 6 to 15K WOB, and 650 to 750 GPM. The Xceed was put into 12L @ 100% once we got back to bottom, and the resulting DLS was a 6.7. Tool was then put into 18L © 100% and drilled from 5215' to 5386' with a DLS of 6.8. This had brought us 20' high to plan so the Xceed was put into 36L @ 80 %; this resulted in a 4.71 DLS. The Xceed was then put into 72L @ 40% to get some left hand turn and help keep the nose up. The Xceed inclination showed it was still building at this setting. Xceed was then set to neutral and rotated from 5575' to 5620' while in neutral. At 5620' the Xceed inclination showed a slight drop so the tool was put back into 72L @ 40% and monitored to 5649'. At 5649' the Xceed inclination did not show any build that was observed previously from the same setting. Xceed was then put into a 12L @ 90% and held there until 5671' were the Xceed inclination did not show any build. Xceed was then put into 100% steering to get needed build rate, this resulted in a 5.3 DLS while needing 6.5 to land. The average ROP for the run was 34.4 ft/hr with the last 100' drilled slowed down to 8' to 15' / hr ROP. The bit was graded 5- 4- RO- A- X -I -HC -BHA. This bit had been run with previous runs and pulled before due to bad DLS when required, client was aware of this BHA 13 (5684- 5800' MD) Drilling Run The objective of the run was to land in the D2 sand with 7 DLS. This objective was not successful. Page 3 of 5 ID The BHA was a Smith FDS+ RR1 with 3 x 18's, Xceed 675, ARC, MWD, 9 1/8" stabilizer, 1 NMDC, 6 1/2" jars, 2 HWDP, 8 STDs DP, 11HWDP. The drilling parameters were 80 to 100 RPM, 10 to 15K WOB, and 650 to 750 GPM. The Xceed was run it with a used milltooth from previous BHA 11. Xceed inclination was closely monitored while drilling and the client was informed when the needed DLS from the Xceed was not achieved. Client decided to drill ahead to target and set casing at what ever angle we managed to achieve. Casing point was reached @ 5800' with a projection 79.65 angle at a TVD of 4538'. The average ROP for the run was 16.6 ft/hr. The bit was graded 5- 4- WT- 3- E- 2- ER -ROP. BHA 14 815 (0'- 5788' MD) Casing cleaning runs BHA 14 was a dumb iron BHA used to clean out the casing to the float collar BHA 15 was a scrapper and magnet BHA to clean out casing for USIT log run. BHA 16 (5800' - 5830' MD) Drilling Run The objective of the run was to land in the D2 sand with 4 DLS. This objective was not successful. The BHA was a Hughes HCD505ZX with 2 x 12's,2 x 14's, 1 x 10, PDX5 475, Impulse MWD, VPWD, 475ADN, 6" stabilizer, 1 NMFDC, Well Commander CCV, X/O, 4 3/4" jars, 2 HWDP, 26 STDs 3 1/2" DP, 15 jts 4" HWDP. The drilling parameters were 80 to 100 RPM, 6 to 20K WOB, and 230 to 275 GPM. The PDX5 was run into the casing and drilled the float collar, no cement was found between float collar and shoe track. Shoe track was drilled with no issues and no cement was drilled between shoe track and bottom of 9'/." well bore. PDX5 was put in to 100% steering HS for the needed 4 DLS to land at the top of the D2 sand. ROP was between 3' and 15' per hour. After drilling to 5820' and performing the FIT, we continued to drill to 5830' where it was decide to TOOH to check the bit. On surface the bit was found to have the size 10 jet packed off with a combination of cement, siltstone, and sand. The average ROP for the run was 8.1 ft/hr. The bit was graded 0- 0- PJ- C- X- 0- CT -ROP. BHA 17 (5830' — 7520' MD) Drilling Run The objective of the run was to land in the D2 sand with 4 DLS. This objective was successful. The BHA was a Hughes Smith MS1613 with 6 x 12's, PDX5 475, Impulse MWD, VPWD, 475ADN, 6" stabilizer, 1 NMFDC, Well Commander CCV, X/O, 4 3/4" jars, 2 HWDP, 26 STDs 3 %" DP, 15 jts 4" HWDP. The drilling parameters were 80 to 140 RPM, 6 to 10K WOB, and 230 to 275 GPM. The max build that the PD generated was 5.5° /100. The inc hold worked well the entire run. The average ROP was 55.78. The bit was graded 1- 1- BT- S- X- I- NO -TD. The short trip and the trip out of the hole was made without any problems. Lessons Learned 17 1/2" Surface Hole 1. Strong right hand walking tendency in surface hole here. 2. Gyro -pulse saves a lot of rig time compared to wireline gyros. 9 1/4" Intermediate Hole Page 4 of 5 • 1. On the bit trip the MWD and LWD tools were downloaded on the trip out of the hole. This proved to take longer than laying them down and picking them back up. Next we will just lay them down and pick them back up. If they end up waiting for the toots to be downloaded they can service the rig. 2. Exceed is a good tool for the Cook Inlet. It produced 4 DLS on one PDC run, 6 on another PDC run, and 4s and 6s on a mill -tooth run. Exceed is superior to a motor for drilling coal because rotation is critical to clean the coal cuttings. We were unable to slide with a motor, presumably because hole - geometry caused a stabilizer to bind into a keyseat. We used the same mill -tooth bit to drill 200' with Exceed that had been pulled from the unsuccessful motor run. X -5 probably would not have achieved the same DLS as Exceed. 3. The Xceed tool will give a better DLS in soft formations with slightly lower GPM and slower rotary. The DLS while drilling the coal with 750 GPM was a 3 and after dropping the GPM to 650 it increased to a 4 DLS. 4. Need to be sure to gauge all stabilizers / wear bands in BHA on the way out or the way in ever time the BHA is tripped and record wear so we can monitor the changes. 6 1/8" Production Hole 1. PDX5 ran with no issues, formation has a definite left hand walk, 25% right just barely held it at times. 2. Page 5 of 5 Chevron Drilling & Measurements I OW 2525 Gambell Street. Suite 400 Anchorage AK 99503 Schlamberger Tcl (907) 273-1700 Fax (907) 561 -8317 Date: Well Name: M -10P131 & M -10 Company: Chevron (Alaska) Inc. API Number: 50- 733 - 20588 -70 (PB1) and 50- 733 - 20588 -00 AFE Number: UWDAK D0001 DRL Location: X=214080.250 US Feet; Y= 2,499,450.290 US Feet Field: Trading Bay Unit Rig: Nabors 51 Drilling and Measurements Field Support: Operations Manager, Mario Pepe Field Service Manager, Paul Wyman Drilling and Measurements Field Crew: Cell Managers, Arina Shulyatieva Cell Engineers, Stephen Fell Jason Burt Sam Ziadeh SERVICES PROVIDED Services Services Dates Depth Intervals Directional Survey Service 08- Jan -10 to 5- Feb-l0 0.00 feet to 7520 feet GyroPulse* 08 -Jan-10 to 9- Jan -10 0.00 feet to 1442 feet VISION* (Resistivity, Gamma Ray) 08- Jan -10 to 05- Feb-10 1462 feet to 6940 feet VISION* (Resistivity, Gamma Ray) 08- Jan -10 to 05- Feb-10 4043 feet to 7520 feet VISION* (Neutron, Density Azimuthal) 13 -Jan-10 to 18 -Jan-10 1462 feet to 6940 feet VISION* (Neutron, Density Azimuthal) 02- Feb-10 to 05- Feb -10 5800 feet to 7520 feet VISION* (Pressure While Drilling) 08 -Jan-10 to 05- Feb-10 5800 fcct to 7520 feet OPERATING STATISTICS Total MWD Pumping Time: 254.8 hours Total LWD Pumping Time: 254.8 hours Total MWD Time Below Rotary: 422.0 hours Total LWD Time below Rotary: 422.0 hours Total MWD Depth Interval: 10042 feet Total LWD Depth Interval: 10042 feet Total MWD Runs: 9 Total LWD Runs: 9 1 Chevron I WO JOB PERFORMANCE Schlumherger • Directional M-1 OPB1: The final MWD survey point was located at 6880.80 feet with an inclination of 46.92 degrees and an azimuth of 15.38 degrees. This direction and inclination was projected from the final survey point to TD, which resulted in the following bottom -hole coordinates: Measured Depth: 6940.00 feet True Vertical Depth: 5105.78 feet Displacement at Azimuth: 728.95 feet at 10 degrees M -10: The final MWD survey point was located at 7484.09 feet with an inclination of 89.49 degrees and an azimuth of 2.99 degrees. This direction and inclination was projected from the fmal survey point to TD, which resulted in the following bottom -hole coordinates: Measured Depth: 7520.00 feet True Vertical Depth: 4555.87 feet Displacement at Azimuth: 1427.01 feet at 10 degrees Formation Evaluation 17 -1/2 inch surface Section The surface section was drilled from 480 to 1442 feet in one run. A motor was used for directional control. A GyroPulse* was used for surveying due to high magnetic interference from nearby casing to provide Gyro While Drilling operations. VISION* Service Resistivity, Gamma Ray, and APWD were also supplied in real -time and from memory once the tools were retrieved. After the surface hole was drilled, 13 3/8 inch casing was set. The final measured bottom -hole temperature was 94.12 degrees Fahrenheit. 9 -1/4 inch Intermediate Section (PB1 Pilot Hole) The intermediate section was drilled from 1442 to 6940 feet in two runs. The BHA used for this section included MWD, LWD (VISION* Resistivity, Gamma Ray and Neutron Density), and the Xceed rotary steerable tool. At 5740 feet, the decision was made to trip out for a bit change. The pilot hole was then completed with a new bit to 6940 feet. Real time and recorded mode data was provided in order to decide which sand to place the horizontal production section in. The final measured bottom -hole temperature was 134.6 degrees Fahrenheit. 9 -1/4 inch Intermediate Section (M -10 Sidetrack) This section was drilled from 4043 to 5800 feet in 5 runs. The first run was aborted due to poor cement quality. The remaining runs were drilled with MWD and LWD (VISION* Resistivity and Gamma Ray) tools. Three of these were drilled with the Xceed rotary steerable tool. On the second of these runs, it was decided to use a PowerPak* mud motor in order to achieve the required dogleg. Both PDC and Milltooth bits were used for these runs and were changed according to needs and availability to achieve the desired results. The final measured bottom -hole temperature was 114.4 degrees Fahrenheit. 2 • Chevron Schlumberger 6 -1/8 inch Production Section (M -10 Lateral) The production section of the well was drilled from 5800 feet to 7520 feet in one run. PowerDrive* rotary steerable tool was used for directional control during this hole section, providing Gamma Ray and Inclination at bit. VISION* Service Resistivity, Gamma Ray, PWD, Azimuthal Density, and Neutron Porosity were supplied in real -time. These services included borehole density images in real -time used by the DCS Well Placement engineers for picking formation dip angles. The final measured bottom -hole temperature was 118.4 degrees Fahrenheit. Innovation & Lessons Learned Borehole Density Images were provided in real time for well placement purposes. Formation dip angles were determined from these images. This data was transmitted via the internet to Schlumberger's InterAct service which allowed real time monitoring of the drilling data by engineers in town, as well as by the rig site geologist. In preparation for the production lateral, some difficulties were experienced with the azimuthal system in the Density Neutron tool. Both primary and backup tools were experiencing external magnetic interference from a combination of steel on the deck and possibly from MiSwaco magnet tools nearby. The lesson to take away is that if we experience this problem in the future, we can lift the Density Neutron with the crane to eliminate the effects of external magnetism in order to continue successfully with tool preparation. Schlumberger Oilfield Services Drilling & Measurements appreciates the opportunity to provide Chevron Exploration (Alaska) Inc. with MWD and LWD services. Sincerely, Stephen Fell MWD /LWD Engineer Schlumberger Drilling & Measurements 3 Schlumberger Section 3 BHA Sheets M -10PB1 and M -10 • lel Scifiumberger BHA # 1 Job # 40019950 Date in 07- Jan -10 Date Out 08- Jan -10 Hole Size 17 1/2 Customer Chevron Time In 9:30 Time Out 0:00 Hole Sect Surface Well M -10PB1 and M -10 Depth In 375 Depth Out 480 Bha Type Cleanout Field Trading Bay Unit TVD In 375 TVD Out 480 Hrs BRT 5,534.50 Rig Nabors 51 Drlg Hrs 1.3 Drlg Ft 105 Avg ROP 82.03 AFE # UWDAK 00001 DRL Slide Hrs 0 Slide Ft 0 Slide ROP DD's Mike Jeude / Marty Rinke Rot Hrs 1.3 Rot Ft 105 Rot ROP 82.03 Co. Men Mike Leslie / Danny Haynes Pump Hrs 2.8 Rotate % 100 Slide % PDM Run # R/S PDM Jet Intl In 0 Az in 0 BitsSrvy N/A PDM Ser# Stages Bearing loci Out Az Out T/F Corr N/A PDM Size Rev /Gal Rubber Avg Dls Max Ds Plan DM Mud Type Spud Mud Mud Wt 8.4 Sand % RPM 60 GPM 600 SPP On BHT F FV-PV YP Solids % Dig TO WOB 5 SPP Off DescrIption Ve XMn Vendor SIN - OD Ib - Stab CO FJ4 Bottom Conn Length Cum bang* mn ! Out m an Top Conn 1 GTX -C1 Hughes 6058303 17 1/2 3 x 18 1 x14 1.42 1.42 Bit #1 RR5 TFA =.896 6 5/8 Reg P 2 Bit Sub SLB SD3429L 8 1/8 2 13/16 6 5/8 Reg Box 3.69 5.11 Float 6 5/8 Reg Box 3 171/4 IBS SLB SD23907 8 3/16 2 7/8 17 1,4 2.80 6 5/8 Reg Pin 8.16 13.27 6 5/8 Reg Box 4 8" NMDC SLB SD44843 7 15/16 2 7/8 6 5/8 Reg Pin 30.70 43.97 65/8 Reg Box 5 8" NMDC SLB SD44525 7 15/16 2 13/16 6 5/8 Reg Pin 29.05 73.02 6 5/8 Reg Box 6 8" NMDC SLB So41699 7 15/16 2 13/16 6 5/8 Reg Pin 30.69 103.71 65/8 Reg Box 7 Float Sub SLB S0106208 8 2 7/8 6 5/8 Reg Pin 3.43 107.14 6 5/8 Reg Box 8 xo SLB so1o2529 6 3/4 - 8 2 15/16 1.55 6 5/8 Reg P 2.78 109.92 41/2 IFB T Cleanout conductor Iii 7.MailffilliC2=11111MILI=11iMai iftt.'; Dry Wt 15,873 /ADC # 117 Motor pool , Wt Above Jars Footage 105 Jars Wt Below Jars Hrs 1.3 Bit #1 -IC . t , I Buoy Wt 13,842 k Revs 5 k RSS Inclination Grade aft To', AIM= z'.Res....GR =.r. 061= x..Pw0... .Dens...,Nuetmx',ca1=x Buoy +lncI WI Comment 4" • .. Schlumherger BHA # 2 Job # 40019950 Date In 08- Jan -10 Date Out 09- Jan -10 Hole Size 17 1/2 Customer Chevron Time In 3:00 Time Out 11:00 Hole Sect Surface Well M -10PB1 and M -10 Depth In 480 Depth Out 1,442 Bha Type Motor Field Trading Bay Unit TVD In 480 TVD Out 1.411 Hrs BRT 32.00 Rig Nabors 51 Drlg Hrs 9.3 Brig Ft 962 Avg ROP 103.44 ME I* UWDAK D0001 DRL Slide Hrs 5.2 Slide Ft 486 Slide ROP 94.37 DD"s Mike Jeude / Marty Rinke Rot Hrs 4.2 Rot Ft 476 Rot ROP 114.70 Co. Men Mike Leslie / Danny Haynes Pump Hrs 21.0 Rotate % 49 Slide % 51 PDM Run # 1 R/S 3 :4 PDM Jet No Inc/ In 0.29 Az In 167.41 B/t'Sivy 43.96 PDM Ser# 962 -5000 Stages 4.5 Bearing Mud Intl Out 24.15 Az Out 167.76 T/F Corr 142.2 PDM Size 9 5/8 Rev /Gal 0.200 Rubber RM100D Avg Dls 2.4 Max Ds 3.6 Plan DM 3.0 Mud type Spud Mud 1W 9.3 Sand % .1 RPM 60 GPM 750 SPP On 1450 BHT F 94 FV -PV-VP 89 - 24 - 27 Solids % 4.7 Dig TQ 6.0 WOB 15 SPP Off 1300 ' . fit Daaar fon SIN QD It Stab OD' . ght. . , Ldp Cum Length ft: J pa Mot: . 7' p Confl 1 GTX -C1 Hughes 6058303 17 1/2 3 x 18 1 x14 1.42 1.42 Bit #1 RR6 TFA =.896 6 5/8 Reg P 962 PDM (1.50) SLB 962-5000 9 5/8 Tool 17 3/8 1.06 6 5/8 Reg Box 27.67 29.09 2 Float _ 6 518 Reg Box 3 17 1/4 IBS SLB SD 18286 8 1/6 2 7/8 17 1/4 2.53 6 5/8 Reg Pin 8.13 37.22 6 5/8 Reg Box 4 NMXO SLB DD 006 7 15/16 2 7/8 6 5/8 Reg Pin 2.11 39.33 6 5/8 FH Pin 5 GyroPulse SLB MDC- 24709 -OC 8 5/16 Tool 65/8 FH Box 25.38 64.71 6 5/8 FH Box Telescope SLB E1159 8 3/10 Tool 1.52 6 5/8 FH Pin 27.80 92.51 6 85 /8FHBox ARC -8 SLB 1865 8 2/5 Tool 4.82 6 5/8 FH Pin 19.32 111.83 7 65 /8FHBox 1 C -1042 8 3/8 4 6 5/8 FH Pin 2.78 114.61 8 NMXO SLB 6 5/8 Reg Box 171/4 IBS SLB ' SD 23907 8 3/16 2 7/8 17 1/4 2.80 65/8 Reg Pin 8.16 122.77 9 6 5/8 Reg Box 8" NMDC SLB 5D44843 7 15/16 2 7/8 65/8 Reg Pin 30.70 153.47 10 6 5/8 Reg Box 8" NMDC SLB SD44525 7 15/16 2 13/16 6 5/8 Reg Pin 29.05 182.52 11 6 5/8 Reg Box 12 8" NMDC SLB 5041699 7 15/16 2 13/16 6 5/8 Reg Pin 30.69 213.21 6 5/8 Reg Box -1° Float Sub SLB 50106208 8 2 7/8 6 5/8 Reg Pin 3.43 216.64 6 5/8 Reg Box xo SLB so1o2529 6 3/4 - 8 2 15/16 1.55 6 5/8 Reg P 2.78 219.42 14 41/21FB 15 18 Jts 5" HWDP Chevron 18 HWDP 5 3 4 1/2 IF P 536.79 756.21 41/2IFB ataincifto 0400#00 Drill to casing point 8$4 ### hi f 1i" tree Dry Wt 57,558 IADC # Motor 0 21.0 NA tilutibut Good run, all went as planned. Wt Above Jars Footage 962 Jars Wf Below Jars Hrs 9.3 it #1 RR6 0 9.3 Why POOHF t# _fro Buoy Wt 49,404 k Revs 99 k RSS Inclination 24 Grade 2- 2- WT- S- IN- E -NO -TD )c 100. 64'. GR =100.81'.O&J =78.24',PWD=98.31' Buoy +lnci Wt 45,080 Comment • 0 Schlumberger BHA # 4 Job # 40019950 Date In 12 -Jan -10 Date Out 13- Jan -10 Hole Size 12 1/4 Customer Chevron Time In 11:00 Time Out 3:00 Hole Sect Surface Well M -10PB1 and M -10 Depth In 1,442 Depth Out 1,462 Bha Type Cleanout Field Trading Bay Unit TVD in 1,411 TVD Out 1,430 Hrs BRT 16.00 Rig Nabors 51 Drlg Hrs 0.3 Drlg Ft 20 Avg ROP 66.67 AFE # UWDAK D0001 DRL Slide Hrs 0 Slide Ft Slide ROP DD s Mike Jeude / Marty Rinke Rot Hrs 0.3 Rot Ft 20 Rot ROP 66.67 Co. Men Mike Leslie / Danny Haynes Pump Hrs Rotate % 100 Slide % PDM Run # R/S PDM Jet Inci in 24.15 Az In 167.76 BlbSrvy N/A PDM Ser# Stages Bearing Inc, Out 24.15 Az Out 167.16 T/F Corr N/A PDM Size Rev /Gal Rubber Avg Ms 0 Max Ds 0 Plan Ms NIA Mud Type Spud Mud Wt 9.3 Sand % RPM 50 GPM 500 SPP On 500 BHT F FV -PV-YP Solids % Div TO 1K WOB 15 SPP Off 500 r- ' SW 010 (D 'AVOW , P.N. fiber{ Length Gem Length lAoltt in tow feten net Cont xR +C Smith PO4605 12 1/4 3 x 18 1.10 1.10 1 Bit #2 RR3 TFA =.746 6 5/8 Reg P 2 Bit Sub SLB sn3429i. 8 1/8 2 13/16 6 5/8 Reg Box 3.69 4.79 Float 6 5/8 Reg Box 3 8" NMDC SLB SO44643 7 15/16 2 7/8 6 5/8 Reg Pin 30.70 35.49 6 5/8 Reg Box 4 12 1/4 Stab SLB SD42714 8 1/16 2 1/2 12 1/4 1.95 6 5/8 Reg Pin 5.36 40.85 6 5/8 Reg Box 8 "NMDC SLB 6044525 7 15/16 2 13/16 65/8 Reg Pin 29.05 69.90 5 6 5/8 Reg Box 6 8" NMDC SLB SD41699 7 15/16 2 13/16 65/8 Reg Pin 30.69 100.59 6 5/8 Reg Box 7 Float Sub SLB S0106208 8 2 7/8 6 5/8 Reg Pin 3.4 104.02 6 5/8 Reg Box 8 xo SLB so102529 6 3/4 - 8 2 15/16 1.55 65/8 Reg P 2.78 106.80 4 1/2 IFB " Drill out 13 3/8 casing + 20' for FIT Dry Wt 15,344 /ADC # Motor 0 °R...___ . ,' Wt Above Jars Footage 20 Jars #VALUE! Wt Below Jars His 0.3 Bit #2 0 0.3 Inclination 24 Grade 7-7-CD-A-E-IN-JD-TD !l ': � _.._ _.. Buoy Wt 13,170 k Revs 1 k - E- IN -JD-TD Nir A114=W, Resr x, cR= 3e, 08,e= 4',PwD= x'.Dens =x',NUer e,Cai =x' _ Buoy +lncl Wt 12,017 Comment 3 cones were locked up while drilling FC • Schlumherger BHA # 5 Job # 40019950 Date In 13- Jan -10 Date Out 16- Jan -10 Hole Size 9 114 Customer Chevron Time In 10:00 Time Out 19:00 Hole Sect Intermediate Well M -10PB1 and M -10 Depth In 1,442 Depth Out 5,740 She Type RSS Field Trading Bay Unit TVD in 1,411 TVD Out 4,846 His BRT 81.00 Rig Nabors 51 Drig Hrs 43.6 Dr)g Ft 4,298 Avg ROP 98.49 AFE # UWDAK D0001 ORL Slide Hrs 0 Slide Ft 0 Slide ROP Din Mike Jeude / Marty Rinke Rot His 43.6 Rot Ft 4,298 Rot ROP 98.49 Co. Men Mike Leslie / Danny Haynes Pump Hrs 61.7 Rotate % 100 Slide % PDM Run # R/S PDM Jet lncl In 24.15 Az In 167.76 BitaSrvy 58.34 PDM Serif Stages Bearing Inc! Out 71.02 Az Out 16.28 T/F Corr WA PDM Size Rev /Gal Rubber Avg Dls 3.5 Max Ds 5.5 Plan Dls 4.0 Mud Type GEM Mud Mud lift 9.2 Sand % .1 RPM 150 GPM 700 SPP On 2100 BHT F 130 FV -PV-YP 44 - 13 - 19 Solids % 4.7 Dig TQ 15K WOB 8 - 14K SPP Off 2100 DesoOption Vendor ' Sift ' CA ID Stab OD FAL HottOnt Conn Length anointing* Hon Art / on "too. top Conn 1 MOi616 Smith JD2520 9 1/4 6 x13 0.90 0.90 Bit#3 TFA =.778 4 1/2 Reg P 2 Xceed675 SLB CRS -AA-t7 6 3/4 TOOL 9 41/2 Reg 25.12 26.02 Float 9 1/8 5 1/2 FH 3 ARC675 SLB ARDC - a+ - 6 4/5 TOOL 4.63 51/2 FH Pin 19.08 45.10 51 /2FHBox 4 675 Telescope SLB C- 45 + 6 21/25 TOOL 51/2 FH Pin 27.31 72.41 51/2 FH Box 5 ADN675 SLB ADoc -nn.no 6 9/10 TOOL 5 1/2 FH Pin 21.52 93.93 4 1/2 IF Box 6 NM Stabilizer SLB 21815 6 3/4 2 13/16 9 1/8 2.24 41/2 IF Pin 5.24 99.17 "Corrision Ring' 8 1/8 4 1/2 IF Box 7 NMDC SLB 48124 6 13/16 2 13/16 4 1/2 IF Pin 30.78 129.95 4 1/2 IF Box 8 6 Jts 5" HWDP Chevron 6 HWDP 5 3 4 1/2 IF P 179.37 309.32 4 1/2 IF B 9 Combo jars /eatherfol 1416.1505 6 1/2 2 3/4 1.60 41/2 IF Pin 32.53 341.85 4 1/2 IF Box 10 12 Jts 5" HWDP Chevron 12 HWDP 5 3 4 1/2 IF P 357.42 699.27 41/2IFB 0446s4/410 Make 4/100 tum and drill to TO Bf> Ho& .,. Dry Wt 38,031 /ADC # M223 Motor ' BHA turtfRan Rastas 160% setting generated 4.3/100 Wt Above Jars 18,084 Footage 4,298 Jars 0 43.6 Did not make TD due to PR Wt Below Jars 21,947 Hrs 43.6 Bit #3 0 43.6 POOH/ COnnacons ILow PR Buoy Wt 32,702 k Revs 393 k RSS 0 61.7 Inclination 24 Grade 6- 4- CR- C- X- I -WT -PR 0.70 , IMP. 58.34,Res 34.06•,GR=34.23',PWO=31.73', Den= 84,r8et =87. Buoy +InciWt 29,839 Comment I • 110 ... Schlumberger BHA # 6 Job # 40019950 Date In 16- Jan -10 Date Out 18 -Jan -10 Hole Size 9 1/4 Customer Chevron Time In 20:00 lime Out 13:30 Hole Sect Intermediate Well M -1OPB1 and M -10 Depth In 5,740 Depth Out 6,940 Bha Type RSS Field Trading Bay Unit TVD In 4,646 TVD Out 5,015 Hrs BRT 41.50 Rig Nabors 51 Drig Hrs 19.1 Drig Ft 1,200 Avg ROP 62.76 AFE # UWDAK 00001 DRL Slide Hrs 0 Slide Ft 0 Slide ROP DD's Mike Jeude ! Marty Rinke Rot Hrs 19.1 Rot Ft 1,200 Rot ROP 62.76 Co. Men Mike Leslie I Danny Haynes Pump Hrs 27.1 Rotate % 100 Slide % PDM Run # R/S PDM Jet Incl In 71.02 Az In 16.28 BIt>Srvy 58.34 PDM Ser# Stages Bearing lnci Out 46.92 Az Out 15.38 T/F Corr N/A PDM Size Rev/Gal Rubber Avg Dis 4.1 Max Ds 5.6 Plan Dls 4.0 Mud Type GEM Mud Mud Wt 9.2 Sand % .1 RPM 150 GPM 770 SPP On 2600 BHT F 135 FV-PV-YP 44 - 14 - 16 Solids % 4 Dig TQ 16.0 WOB 8 SPP Off 2600 Jam n S/N QD H) Stab , . Bottom .63 n Lotoit cum Length in f tlxt Plana Top Lunn 1 MDi616 Smith JD2519 9 1/4 6 x14 0.90 0.90 Bit#4 TFA =.778 41/2 Reg P 2 Xceed675 SLB CRS-AA-177 6 3/4 TOOL 9 4 1/2 Reg 25.12 26.02 Float 5 1/2 FH 3 ARC675 SLB M Dc 6 4/5 TOOL 4.63 51/2 FH Pin 19.08 45.10 51 /2FHBox 4 675 Telescope SLB hwc- AC-45893 6 21/25 TOOL 5 1/2 FH Pin 27.31 72.41 51 /2FHBox 5 ADN675 SLB AODC -AA -220 6 9/10 TOOL 51/2 FH Pin 21.52 93.93 4 1/2 IF Box 6 NM Stabilizer SLB 24900 6 17/20 2 13/16 9 1/8 2.57 4 1/2 IF Pin 7.08 101.01 'Corrision Ring* 4 1/2 IF Box NMDC SLB 46124 6 13/16 2 13/16 41/2 IF Pin 30.78 131.79 7 4 1/2 IF Box 8 6 Jts 5" HWDP Chevron 6 HWDP 5 3 4 1/2 IF P 179.37 311.16 4 1/2 IF B 9 Combo jars eatherfo 1416 -1505 6 1/2 2 3/4 1.60 4 1/2 IF Pin 32.53 343.69 4 1/2 IF Box 10 12 Jts 5" HWDP Chevron 12 HWDP 5 3 4 1/2 IF P 357.42 701.11 4 1/2 IF B l L ; r ;;;Lt Complete build and drill to TD. : Dr Wt 38,234 /ADC # M223 Motor Good run, average DLS 4.12 with Wt Above Jars 16.084 Footage 1200 Jars 43.6 62.7 average setting 70% - Stabilizers came out in gauge Wt Below Jars 22,150 Hrs 19.1 Bit #4 0 19.1 "' " TD PB1 Buoy Wt 32876 k Revs 172 k RSS 61.7 88.8 inclination 24 Grade 1- 1- CT- N- 0- X -ER -TD i - ; I* Did= 58.34,Re9=34.06',GR=34.23',PWD =31.73, Den=84.Nue4 87. Buoy+incJ Wt 29,998 ment Bonding on inner teeth had started to errvde o' • 0 Scblumberger BHA # 8 Job # 40019950 Date In 20- Jan -10 Date Out 21- Jan-10 Hole Size 9 1/4 Customer Chevron Time In 16:00 Time Out 12:15 Hole Sect Sidetrack Well M -10PB1 and M -10 Depth In 4,236 Depth Out 4,236 Bha Type RSS Field Trading Bay Unit TVD In 3,648 TVD Out 3,648 Hrs BRT 20.25 Rig Nabors 51 Drlg Hrs 0 Ddg Ft Avg ROP AFE # UWDAK D0001 DRL Slide Hrs 0 Slide Ft 0 Slide ROP DD's Mike Jeude / Marty Rinke Rot Hrs Rot Ft Rot ROP Co. Men Mike Leslie / Danny Haynes Pump Hrs 11.8 Rotate % Slide % PDM Run # R/S PDM Jet loci In 22.30 Az In 70.56 Bit>Srvy 58.34 PDM Serif Stages Bearing Intl Out 22.30 Az Out 70.56 T/F Con• N/A PDM Size Rev/Gal Rubber Avg Dls 0 Max Ds 0 Plan Dia 5.0 Mud Type GEM Mud Mud Wt 9.5 Sand % .1 RPM 120 GPM 600 SPP On 1600 BHT F 135 FV -PV -VP 46 -14 -15 Solids % 4.5 Dig TQ 0 WOB 0 SPP Off 1600 tossesiotton . DM OD f - OD ; 1 1L Conn /Angel ego Longo Maas It / our moo Top Dean 1 MDi616 Smith .1132519 9 1/4 6 x14 0.90 0.90 Bit#4 RR 1 TFA =.902 4 1/2 Reg P 2 Xceed675 SLB CRS -an-1n 6 3/4 TOOL 9 4 1/2 Reg 25.12 26.02 Float 51/2 FH 3 ARC675 SLB ARoC- -296 6 4/5 TOOL 4.63 5 1/2 FH Pin 19.08 45.10 5 1/2 FH Box 4 675 Telescope SLB MDC -AC -45893 6 21/25 TOOL 5 1/2 FH Pin 27.31 72.41 51/2 FH Box 5 NMXO SLB NMXOS•G2B -206 6 3/4 3 5 1/2 FH Pin 1.87 74.28 4 1/2 IF Box 6 NM Stabilizer SLB 24900 6 17/20 2 13/16 9 1/8 2.57 41/2 IF Pin 7.08 81.36 4 1/2 IF Box 7 NMDC SLB 46124 6 13/16 2 13/16 4 1/2 IF Pin 30.78 112.14 4 1/2 IF Box 8 6 Jts 5" HWDP Chevron 81-116/01 5 3 4 1/21F P 179.37 291.51 4 1/2 IF B 9 Combo jars /eatherfoi 1416-1505 6 1/2 2 3/4 1.60 4 1/2 IF Pin 32.53 324.04 4 1/2 IF Box 10 11 Jts 5" HWDP Chevron 11 RwoP 5 3 4 1/2 IF P 327.36 651.40 41/2IFB NIA aiwiThaOhiectfre Complete build and drill to casing point. I Bit 11144 ' Mts. in Mi.. tilt . Dry D Wt 34,729 /ADC # M223 Motor BhAan ' 'Washed from 3700' to 4600', no good WI Above Jars 14,731 Footage Jars 62.7 62.7 cement found. Wt Below Jars 19,998 Hrs 0 Bit #4 19.1 19.1 11000HitCOSUMwits s JTOOH to redo sidetrack plug. Buoy Wt 29,703 k Revs RSS 88.8 100.6 Inclination 24 Grade 1- 1- CT- N- 0 -X -ER -BHA Bpi ' O IOW= 58. 34 ,ws= 34.06',GR=34.23',PWW31.73', Buoy +Mcl WI 27,104 . ment 1 I lb Scblumberger BHA # 10 Job # 40019950 Date In 23- Jan -10 Date Out 24- Jan -10 Hole Size 9 1/4 Customer Chevron Time In 7:00 Time Out 1:15 Hole Sect Sidetrack Well M -10PB1 and M -10 Depth In 4,043 Depth Out 4,438 Bha Type RSS Field Trading Bay Unit TVD In 3,468 TVD Out 3,830 Hrs BRT 18.25 Rig Nabors 51 DrIg Hrs 5.1 Drlg Ft 395 Avg ROP 76.85 AFE # UWDAK D0001 DRL Slide Hrs 0 Slide Ft 0 Slide ROP DD's Mike Jeude / Marty Rinke Rot Hrs 5.1 Rot Ft 395 Rot ROP 76.85 Co. Men Mike Leslie / Sam Menapace Pump Hrs 11.5 Rotate % 100 Slide % PDM Run # R/S PDM Jet Inc/ In 21.63 Az In 85.04 Bit>Srvy 58.34 PDM Ser# Stages Bearing Inci Out 25.39 Az Out 70.23 T/F Con N/A PDM Size Rev /Gal Rubber Avg DJs 4.6 Max Ds 5.1 Plan Ms 5.0 Mud Type GEM Mud Mud Wt 9.5 Sand % .1 RPM 120 GPM 650 SPP On 1400 BHT F 100 FV -PV-YP 48/10/15 Solids % 4 Dig TQ 8.0 WOB 10 SPP Off 1400 Ite4a ( Dtra4rgekut X et , ,. CO ID Stab 00 . PAL Rotten, . , t no - ht / ate Feta Tee &mit . 1 MD1616 Smith JD2519 9 1/4 6 x14 0.90 0.90 Bit#4 RR 2 TFA =.902 41/2 Reg P 2 Xceed675 SLB CRS-M-177 6 3/4 TOOL 9 4 1/2 Reg 25.12 26.02 Float 51/2 FH 3 ARC675 SLB ARDC- AAA -298 6 4/5 TOOL 4.63 5 1/2 FH Pin 19.08 45.10 5 1/2 FH Box 4 675 Telescope SLB MIX - AC -45893 6 21/25 TOOL 5 1/2 FH Pin 27.31 72.41 5 1/2 FH Box NMXO SLB moos-Gm- 6 3/4 3 5 1/2 FH Pin 1.87 74.28 5 4 1/2 IF Box 6 NM Stabilizer SLB 24900 6 17/20 2 13/16 9 1/8 2.57 4 V2 IF Pin 7.08 81.36 4 1/2 IF Box NMDC SLB 46124 6 13/16 2 13/16 41/2 IF Pin 30.78 112.14 7 4 1/2 IF Box 6 Jts 5" HWDP Chevron 6 HWDP 5 3 41/2 IF P 179.37 291.51 8 4 1/2 IF B Combo jars Jeatherfoi 1416 -1505 6 1/2 2 3/4 1.60 4 1/2 IF Pin 32.53 324.04 9 4 1/2 IF Box 11 Jts 5" HWDP Chevron 11 HWDP 5 3 4 1/2 IF P 327.36 651.40 10 4 1/2 IF B ''' z a,r -""#;""" ' ^8 ,t '''''':=2, y ?, � ., -'"' 1 9 A +nY✓. � 1`S*1 -" '- > 7'' - °_ Sidetrack and build to lano�ng pant with ,� ^} _ �,, , �. � ;�„� 5 DLS. Dry Wt 34,729 IADC # M223 Motor , it =in =?' "? ": Xceed was not giving big enough DLS to Wt Above Jars 14,731 Footage 395 Jars 62.7 67.8 reach the target with the bit we ran. Bit came out with many cutters wore Wt Below Jars 19,998 Hrs 5.1 Bit #4 19.1 24.2 ---'" + .`, Bha Buoy Wt 29,703 k Revs 37 k RSS 100.6 112.1 Inclination 24 Grade 2- 2- WT- A- X -I-CT -Bha Astro, I DM_ 58. 34, R66=34.06'.GR =34.23',PWD=31.73'. Buoy +incl Wt 27,104 Comment Shoulder row was down to less than half. I 1 4 0 $cblumberger BHA # 11 Job # 40019950 Date In 24- Jan -10 Date Out 25- Jan -10 Hole Size 9 1/4 Customer Chevron Time in 3:30 Time Out 22:00 Hole Sect Sidetrack Well M -10PB1 and M -10 Depth in 4,438 Depth Out 5,105 Bha Type PDM Field Trading Bay Unit TVD In 3,830 TVD Out 4,314 Hrs BRT 42.50 Rig Nabors 51 Drlg Hrs 18.1 Drlg Ft 667 Avg ROP 36.93 AFE S UW DAK D0001 DRL Slide Hrs 12.1 Slide Ft 378 Slide ROP 31.19 DDS Mike Jeude / Marty Rinke / Ted Neville Rot Hrs 5.9 Rot Ft 289 Rot ROP 48.65 Co. Men Mike Leslie / Sam Menapace Pump Hrs 30.1 Rotate % 43 Slide % 57 PDM Run S 2 R/S 7:8 PDM Jet No Inc! In 25.39 Az In 70.23 Bit>Srvy 67.76 PDM Sell A675- 24x100 Stages 5.0 Bearing Mud lnci Out 53.89 Az Out 16.52 T/F Corr 13.9 PDM Size 6 3/4 Rev/Gal 0.280 Rubber RM100D Avg Dis 6.8 Max Ds 9.0 Plan Drs 6.0 Mud Type GEM Mud Mud Wt 9.3 Sand % .1 RPM 60 GPM 600 SPP On 1750 BHT F 110 FV -PV -YP 47 -14 -15 Solids % 4.2 Dig TQ 15.0 WOB 15 to 26 SPP Off 1650 Vendor SW 00 W OD F M. BOttom Conn Length CWa Length Rani ht / ea IWOD Top Coon 1 FOS+ Smith PP 1397 9 1/4 3 x18 0.90 0.90 Bit#5 TFA =.746 4 1/2 Reg P 2 675 PDM (1.50) SLB A675- 24x100 6 3/4 Tool 9 1/8 1.30 4 1/2 Reg Box 25.87 26.77 Float 4 1/2 IF Box 3 NM Stabilizer SLB 24900 6 17/20 2 13/16 9 1/8 2.57 4 1/2 IF Pin 7.08 33.85 4 1/2 IF Box 4 NMXO SLB NMXOS -GZ -779371 6 7/8 3 1/2 41/2 IF Pin 1.59 35.44 51/2FHBox 5 ARC675 SLB ARWCAA-296 6 4/5 TOOL 4.63 5 1/2 FH Pin 19.08 54.52 51/2FHBox 6 675 Telescope SLB WC-AC-45893 6 21/25 TOOL 5 1/2 FH Pin 27.31 81.83 51/2FHBox 7 NMXO SLB NMXOS- G213206 6 3/4 3 5 1/2 FH Pin 1.87 83.70 4 1/2 IF Box 8 NMDC SLB 46124 6 13/16 2 13/16 41/2 IF Pin 30.78 114.48 4 1/2 IF Box 9 6 Jts 5" HW DP Chevron 6 HWDP 5 3 41/2 IF P 179.37 293.85 41/2IFB 10 Combo jars /eatherfol t 6 1/2 2 3/4 1.60 4 1/2 IF Pin 32.53 326.38 4 1/2 IF Box 11 11 Jts 5" HWDP Chevron 11 HWDP 5 3 4 1/2 IF P 327.36 653.74 41/2IFB iiiklittifit* Build to landing target Q 6 DLS ' BB talk' T in 01,,.Olt Dry Wt 34,301 L4DC # Motor 0 30.1 BH,4i dRi r, IPDM gave large DLS than calculated, Wt Above Jars 14,731 Footage 667 Jars 67.8 85.9 caught back to plan when torque jumped up Wt Below Jars 19,570 Hrs 18.1 Bit #5 0 18.1 Y i I t5e J ROP / Torque Buoy Wt 29,442 k Revs 203 k RSS Inclination 54 Grade 4- 3- WT- 3- E- 2- ER -ROP eft 7b IMF= 67 76Res=43.4r.GR=43.65,PWDe41.15', Buoy +lncI WI 17,306 Comment • • Schiumberger BHA # 12 Job It 40019950 Date In 25- Jan -10 Date Out 27- Jan -10 Hole Size 9 1/4 Customer Chevron Time In 22:00 Time Out 4:00 Hole Sect Sidetrack Well M -10PB1 and M -10 Depth In 5,105 Depth Out 5,684 Bha Type RSS Field Trading Bay Unit Tt/D In 4,314 TVD Out 4,512 Hrs BRT 30.00 Rig Nabors 51 DrIg Hrs 16.8 Drlg Ft 579 Avg ROP 34.40 AFE # UWDAK D0001 DRL Slide Hrs 0.0 Slide Ft 0 Slide ROP 100.00 DD's Mike Jeude / Ted Neville Rot Hrs 16.8 Rot Ft 579 Rot ROP 34.40 Co. Men Shane Hauck / Sam Menapace Pump Hrs 21.3 Rotate % 100 Slide % 0 PDM Run # R/S PDM Jet lncl in 53.89 Az In 16.52 Bit>Snry 58.34 PDM Ser# Stages Bearing Ind Out 75.40 Az Out 12.00 T/F Corr N/A PDM Size Rev/Gal Rubber Avg Dis 3.4 Max Ds 6.8 Plan Dis 5.0 Mud Type GEM Mud Mud Wt 9.5 Sand % .1 RPM 120 GPM 750 SPP On 2100 BHT F 100 FV -PV -YP 48/10 /15 Solids % 4 Dl TQ 16K WOB 10 SPP Off 2050 D . SON OD ID Sath OD AN: Cone Length . theetnelth 1 MDi616 Smith JD2519 9 1/4 6 x14 0.90 0.90 Bit#4 RR 3 TFA =.902 41/2 Reg P 2 Xceed675 SLB oRS -M-1 6 3/4 TOOL 9 41/2 Reg 25.12 26.02 Float 5 1/2 FH ARC675 SLB ARDC 6 4/5 TOOL 4.63 51/2 FH Pin 19.08 45.10 3 5 1/2 FH Box 4 675 Telescope SLB MDC - AC -45893 6 21/25 TOOL 51/2 FH Pin 27.31 72.41 51 /2FHBox 5 NMXO SLB NMocos -cze -206 6 3/4 3 51/2 FH Pin 1.87 74.28 4 1/2 IF Box NM Stabilizer SLB 24900 6 17/20 2 13/16 9 1/8 2.57 41/2 IF Pin 7.08 81.36 6 4 1/2 IF Box NMDC SLB 46124 6 13/16 2 13/16 41/2 IF Pin 30.78 112.14 7 4 1/2 IF Box 8 6 Jts 5' HWDP Chevron 6WWDP 5 3 4 1/2 IF P 179.37 291.51 4 1/2 IF B 9 Combo jar; /eatherfoi 1416 -1505 6 1/2 2 3/4 1.60 4 1/2 IF Pin 32.53 324.04 4 1/2 IF Box 11 Jts 5" HWDP Chevron 11 HWDP 5 3 4 1/2 IF P 327.36 651.40 10 41/2IFB .2a J.,." r Drill to TD '7 - rx : ::C.'°:r *""t x Dry WI 34,729 IADC # M223 Motor `' ` ' �, "'Started with 6.7 DLS and then did not Wt Above Jars 14,731 Footage 579 Jars 85.9 102.7 g ive the needed DLS after a tangent section. Wt Below Jars 19,998 Hrs 16.8 /1 #4 RR3 24.2 41.0 " ». 1 gip: , Insufficient DLS. Buoy Wt 29,703 k Revs 121 k RSS 112.1 133.4 w Y Inclination 75 Grade 5- 4- RO- A- X- I- HC-BHA Alt . I DM= 58. 34 ,Re =34.06.GR =34.23'.PWDm31.73% Buoy +lnd Wt 7,487 Comment al i. Schlumbeger BHA # 13 Job # 40019950 Date in 27- Jan -10 Date Out 28- Jan -10 Hole Size 9 1/4 Customer Chevron Time in 11:30 Time Out 17:00 Hole Sect Sidetrack Well M -10PB1 and M -10 Depth in 5,684 Depth Out 5,800 Bha Type RSS Field Trading Bay Unit TVD In 4,512 Tt/D Out 4,539 Hrs BRT 29.50 Rig Nabors 51 Drig Hrs 7.0 Drig Ft 116 Avg ROP 16.57 AFE# UWDAK D0001 DRL Slide Hrs 0.0 Slide Ft 0 Slide ROP DD's Mike Jeude / Ted Neville Rot Hrs 7.0 Rot Ft 118 Rot ROP 16.57 Co. Men Shane Hauck / Sam Menapace Pump Hrs 15.9 Rotate % 100 Slide % 0 PDM Run # R/S PDM Jet Inc! In 75.40 Az in 12.00 Bit>Srvy 58.34 PDM Sent Stages Bearing Ind Out 79.00 Az Out 9.00 T/F Con N/A PDM Size Rev/Gal Rubber Avg Dls 5.0 Max Ds 6.0 Plan Dls 7.0 Mud Type GEM Mud Mud WI 9.5 Sand % .1 RPM 80 to 100 GPM 750 SPP On 2100 BHT F 110 FV -PV-YP 50 -16-PV Solids % 5.3 Dig TQ 13.0 WOB 15 SPP Off 2100 NOM $W AO ID WO OD PJ . ' fitatimi G''ottrt Length 'CU?, Length in / but rtrtrO Top Cate» 1 FDS+ Smith PP 9 1/4 3 x18 0.90 0.90 Bit#5 RR 1 TFA =.746 41 /2 Reg P 2 Xceed675 SLB CRS-AA-177 6 3/4 TOOL 9 41/2 Reg 25.12 26.02 Float 9 1/16 5 1/2 FH 3 ARC675 SLB nROC -PA -1705 6 3/4 TOOL 5 1/2 FH Pin 19.29 45.31 51 /2FHBox 4 675 Telescope SLB MDC•AC-45893 6 21/25 TOOL 5 1/2 FH Pin 27.31 72.62 5 1/2 FH Box 5 NMXO SLB NMXOS -GZB -206 6 3/4 3 51/2 FH Pin 1.87 74.49 4 1/2 IF Box 6 NM Stabilizer SLB 24901 6 7/8 2 13/16 9 1/8 2.70 41/2 IF Pin 7.08 81.57 4 1/2 IF Box 7 NMDC SLB 48124 6 13/16 2 13/16 41/2 IF Pin 30.78 112.35 4 1/2 IF Box 8 Std W/ Combo Jars eatherfa 1418 -1505 (Stand) 6 1/2 2 3/4 1.60 4 1/2 IF Pin 91.85 204.20 4 1/2 IF Box 9 8 Stds 5" OP 8 Stds 5" DP 5 4 41/2 IF P 758.67 962.87 4 1/2 IF B 10 5 Stds 5" HWDP Chevron 15 HWDP 5 3 4 1/2 IF P 447.41 1410.28 4 1/2 IF B 1 1014 one Drill to TO - 4 Dry Wt 54,082 IADC # M223 Motor BH* #rod on Swats Achieved Wt Above Jars 42,135 Footage 116 Jars 102.7 109.7 Wt Below Jars 11,947 Hrs 7.0 #5 RR1 18.1 25.1 Why .: s +. / is TO in 02 sand Buoy Wt 46,256 k Revs #VALUEI RSS 133.4 149.3 inclination 75 Grade 5- 4- WT- 3- E- 2- ER -ROP jut TO D81= 58. 55, Resa3 4.14•,GR =34,31',PWD- 31.81'. Buoy +ind Wt 11,660 omment 1 0 SchIu r l e ge BHA # 16 Job* 40019950 Date in 02- Feb-10 Date Out 03- Feb -10 Hole Size 6 1/8 Customer Chevron Time in 23:00 Time Out 19:30 Hole Sect Production Well M -10P81 and M-10 Depth in 5,800 Depth Out 5,830 Bha Type RSS Field Trading Bay Unit TVD In 4,539 TVD Out 4,545 Hrs BRT 20.50 Rig Nabors 51 Drig Hrs 3.7 _ Drig Ft 30 Avg ROP 8.06 AFE# UWDAK D0001 DRL Slide Hrs 0 Slide Ft 0 Slide ROP DOS Mike Jeude / Marty Rinke Rot Hrs 3.7 Rot Ft 30 Rot ROP 8.06 Co. Men Shane Hauck / David Smith Pump Hrs 7.6 Rotate % 100 Slide % PDM Run it R/S PDM Jet loci In 79.00 Az In 9.00 Bit>Srvy 34.75 PDM Ser# Stages Bearing inel Out 79.00 Az Out 9.00 T/F Corr N/A PDM Size Rev/Gal Rubber Avg Dls x Max Ds x Plan Dls 6.0 Mud Type Baradril -n Mud Wt 8.8 Sand % .10 RPM 100 GPM 270 SPP On 1675 BHT F 94 Ft/" -PV -YP 40 -7 -15 Solids % 0 Dig TQ 8.5 WOB 8 to 20 SPP Off 1825 0D ID 'stoop 0 , , cow . Conietot. : b /osi moo "b Corm , 1 HCO505ZX Hughes 7120859 6 1/8 2x12, 2x14, 1x10 0.75 0.75 Bit#7 TFA =.598 31/2 Reg P 2 475 PDX5 - 6.125 SLB Pau AA 4 3/4 TOOL 6 0.97 3 1/2 Reg Box 14.61 15.36 Float 3 1/2 IF Pin 3 #N/A #N /A PDRx #N /A #N /A #N /A #N /A #N /A #N /A #N /A #N /A 4 475IMPULSE SLB 2178 4 3/4 2 1/2 3 1/2 NC35 Box 34.08 #N /A 3 1/2 IF Pin 5 475VWPD SLB 174 4 3/4 TOOL 31/2 IF Box 15.10 #N /A 3 1/2 IF Pin 6 475ADN SLB 41431 4 3/4 TOOL 3 1/2 IF Box 24.97 #N /A 3 1/2 IF Box 7 6" NMIBS SLB SD24492 4 13/16 2 5/16 6 3.65 3 1/2 IF Pin 6.05 #N /A Corrosion Ring 3 1/2 IF Box 8 475 NMDC SLB SD45767 4 13/16 2 5/16 31/2 IF Pin 30.74 #N /A 3 1/2 IF Box 9 WELL COMD (CCV) SWACO MI2469 4.75 X 5 2 1/4 1.43 31/2 IF Pin 10.93 #N /A 3 1/2 IF Box 10 31/2 IF to HT38 NAD NAD we 5 1/8 2 1/2 31/2 IF Pin 1.25 #N /A HT38 Box 11 Combo Jars Ieatherfol 1400 - 1353 4 3/4 2 1/4 1.59 HT38 Pin 28.96 #NIA HT38 Box 12 2 Jts 4" HWDP /eatherfoi 24 " NWOP 4 2 1/4 HT38 Pin 60.38 #N /A HT38 Box 13 3 1/2" DP 78 Jts NAD NAD DP 3 1/2 2 5/8 HT38 Pin 2483.78 #NIA HT38 Box 14 15 Jts 4" HWDP /eatherfol t "�P 4 2 1/4 HT38 Pin 457.31 #N /A HT38 Box t x Build with 6 DLS to 89 deg . "' f* �R Dry Wt #N/A !ADC # Motor .' a Rop was 65' after drilling out float collar WI Above Jars 53,305 Footage 30 Jars 0 17 _ and shoe track. No cement was observed. WI Below Jars #N /A Hrs 3.7 Bit #7 0 3.7 1 . : :41ROP Buoy Wt #N /A kRevs 22 k RSS 0 7.6 PD GR= 3.25 Inclination 79 Grade 0- 0- PJ- C- X- 0- CT -ROP ? w D&1 =34.75, Res "29.55,GR "36.75',PWD"60.5V. Don =78.82' Nuet- 80.38' Buoy+lncl Wt #N/A Comment • 0 Sclilumberger BHA # 17 Job # 40019950 Date In 03- Feb-10 Date Out 08- Feb -10 Hole Size 6 1/8 Customer Chevron Time In 19:30 Time Out 6:00 Hole Sect Production Well M -10PB1 and M -10 Depth In 5,830 Depth Out 7,520 Bha Type RSS Field Trading Bay Unit TVD In 4,545 TVD Out 4,555 Hrs BRT 106.50 Rig Nabors 51 Wig Hrs 30.3 brig Ft 1,690 Avg ROP 55.78 AFE # UWDAK D0001 DRL Slide Hrs 0 Slide Ft 0 Slide ROP DO'S Mike Jeude / Marty Rinke Rot Hrs 30.3 Rot Ft 1,690 Rot ROP 55.78 Co. Men Shane Hauck / David Smith Pump Hrs 46.8 Rotate % 100 Slide % PDM Run # R/S PDM Jet Inc! In 79.00 Az in 9.00 Bit>Srvy 34.75 PDM Ser# Stages Bearing loci Out 89.49 Az Out 2.99 TIP Corr N/A PDM Size Rev/Gal Rubber Avg Dls 5.0 Max Ds 5.5 Plan DU 4.0 Mud Type Baradril -n Mud Wt 8.8 Sand % 0 RPM 140 GPM 270 SPP On 1675 BHT F 118 FV -PV -YP 41 -7 -20 Solids % 1.7 Dig TQ 8.5 WOB 8 to 20 SPP Off 1625 Item Vendor SAY OD 0 Stab OD P.N. Obttent Coon Length Cern Le ugth k.I out twoh TOp Conn 1 MSi613 Smith J02642 6 1/8 6 x12 0.70 0.70 Bit #8 TFA =.663 3 1/2 Reg P 2 475 PDX5 - 6.125 SLB Po4SU - AA - 1103 4 3/4 TOOL 6 0.97 31/2 Reg Box 14.61 15.31 Float 31/2 IF Pin 3 475 RECIVER SUB SLB PDRX 4 3/4 TOOL 1.79 31/2 IF Box 7.27 22.58 NC35 Pin 4 475IMPULSE SLB 2118 4 3/4 2 1/2 3 1/2 NC35 Box 34.08 56.66 3 1/2 IF Pin 5 475VWPD SLB 114 4 3/4 TOOL 31/2 IF Box 15.10 71.76 3 1/2 IF Pin 6 475ADN SLB 41431 4 3/4 TOOL 3 1/2 IF Box 24.97 96.73 3 1/2 IF Box 7 6" NMIBS SLB 5024492 4 13/16 2 5/16 6 3.65 3 1/2 IF Pin 6.05 102.78 Corrosion Ring 3 1/2 IF Box 8 475 NMDC SLB SD45767 4 13/16 2 5/16 31/2 IF Pin 30.74 133.52 3 1/2 IF Box 9 WELL COMD (CCV; SWACO X112469 4.75 X 5 2 1/4 t43 31/2 IF Pin 10.93 144.45 3 1/2 IF Box 10 3 1/2 IF to HT38 NAD MAD w0 5 1/8 2 1/2 31/2 IF Pin 1.25 145.70 HT38 Box 11 Combo Jars /eatherfoi 1400.1353 4 3/4 2 1/4 1.59 HT38 Pin 28.96 174.66 HT38 Box 12 2 Jts 4" HWDP /eatherfoi 24 ' 1iwoP 4 2 1/4 HT38 Pin 60.38 235.04 HT38 Box 13 3 1/2" DP 78 Jts NAD NAD DP 3 1/2 2 5/8 HT38 Pin 2483.78 2718.82 HT38 Box 14 15 Jts 4" HWDP /eatherfoi 154 "HWDP 4 2 1/4 HT38 Pin 457.31 3176.13 HT38 Box AM and Run 0111fective Build at 4/100 to 90 and hold to TD Batt 1 T oo t __.. _..._ . Hi in Hrs. Out Dry Wt 61,599 /ADC # Motor BIM and Run Results 'Max build was 5.5/100 Wt Above Jars 53,305 Footage 1,690 Jars 3.7 34.0 Wt Below Jars 6,904 Hrs 30.3 Bit #8 0 30.3 ,M r"POOH /Comment# ITD Buoy Wt 53,342 k Revs 255 k RSS 7.6 54.3 PD GR= 3.25 Inclination 90 Grade 1- 1- BT- S- X- I -NO -TD Bit To 1D6 1= 34. 75 ,Res"'29.55',GR =367s.PWD =e0.59', Den"76.82' IWet- 80.38' Buoy +lncl Wt 0 Comment • • Schlumberger Section 4 Slide Sheets M -10PB1 and M -10 Schlumberger PDM PERFORMANCE RECORD Well: M -10 Date / Time In: 1/8/2010 3:00 Operator: Chevron BHA NO: 2 Date / Time Out: 1/9/2010 11:00 Field - Lease: Trading Bay Directional Drillers: Mike Jeude PDM Run NO: 1 Hours In Hole: 32.0 Location: Steelhead Marty Rinke Motor Information I Vendor/Model: SLB D &M I PowerPak Type Bend: 0 - 3° ADJ. Power HSG OD: 9 5/8 PDM RPM: 140 Pickup WT: 125 Degree Bend: 1.5° Stabilizer Type: Straight By -Pass Jet: Blank RPM / GAL: 0.200 Slackoff WT: 120 Serial NO: 962 -5000 Blade Length: 1.50 Top Connection: 6 5/8 Reg Rotary RPM: 50 Rotating WT: 120 Coni. uratlon: 3.4 4.5 stage STAB Gauge: 17 3/8 BTM Connection: 65/8 Reg Bearing Type: Mud Torque On/Off Btm: 4 / 2.5 Bit Data i Slide Rotate Total Strokes: 165 Casing Size: 28 -32 Bit #: 1 RR6 Size: 17 1/2" Drill Hours: 9.37 Bit RPM: 140 190 Flow Rate: 700 Casing WT: MISC Make: HTC IADC: 117 Footage: 962 Weight on Bit: 10 -25 3 -25 Pump Pressure: 1250 / 1500 Casing Shoe Depth: 490 Model: GTX -C1 Bit REVS: 91,330 "P" Rate: 102.7 Hours: 5.15 4.22 RIG Pumping HRS: 20.96 Mud Type: Spud S / N: 6058303 Jets: 3x18, 1x14 Depth In: 480 FTG: 486 476 Drilling HRS: 9.37 Mud Weight: 9.3 Grade: 2- 2- WT- S -E -IN -NO-TD Depth Out: 1442 "P" Rate: 94 113 CIRC & Ream HRS: 11.59 PV / VP: 15 / 17 Formations: Sand, Coal, Silt % FTG: 51 49 PDM HRS In: 0 Solids / Sand: 4.7 / .1 Reason For Trip: TD Surface Section % Time: 55 45 PDM HRS Out: 20.96 Down Hole Temp: 94° Depth Depth Tool . Course . 'P' WOO RPM Raw Torque SPP off SPP On Dods P SW SW SW Hole AA$ 01,5 Slide - 1 Enid Fece LAM* Pete Kite. Mtn GM%Ihi K Ribs oat osi oil Comore lts NO. Death TVD . Angle DRt /HOT Sake. III 480 484 4 60 3 30 610 3 685 750 65 2 416.66 417 0.29 167.41 0.07 0.06 484 500 18 69 10 30 610 3 750 850 100 3 451.71 452 0.35 214.07 0.74 029 500 514 150M 14 53 10 605 750 850 100 4 469.30 469 0.50 182.09 1.56 14 0.56 514 520 6 72 10 30 605 3 750 850 100 5 485.89 488 0.72 182.15 1,33 0.65 520 535 15 90 10 30 605 3 775 875 100 6 504.92 505 0.88 166.90 1.39 0.81 535 543 155M 8 48 10 605 775 900 125 7 519.86 520 1.07 179.34 1.90 8 0.98 543 555 12 65 10 30 605 3.5 775 900 125 8 554.73 555 1.64 163.18 1.95 1.16 555 568 13 98 10 30 605 3 775 900 125 3 Gyro Attempts 1.30 568 573 145M 5 75 10 610 775 900 125 5 1.36 573 578 145M 5 100 10 610 775 900 125 5 1.41 578 603 25 115 10 40 600 4.5 800 1000 200 9 587.08 587 227 157.51 2.03 1.62 603 813 150M 10 86 10 600 800 1000 200 10 1.74 613 635 22 120 15 40 600 4 800 1000 200 10 617.93 818 2.89 154.35 2.06 1.92 635 645 165M 10 86 15 600 800 1000 200 10 2,04 645 661 16 96 15 40 600 4.5 825 1025 200 11 648.67 649 3.45 157.77 1.92 2.20 661 667 6 90 15 40 600 4.5 825 1025 200 2.26 667 679 185M 12 90 15 600 825 1025 200 12 2.40 879 700 21 180 15 40 600 5 850 1050 200 12 684.29 684 4.17 161.83 2.16 2.52 700 712 195M 12 72 15 600 850 1025 175 Pump Sweep /Ckcout 12 2.68 712 732 20 150 15 40 600 5 850 1050 200 2.82 732 746 30R 14 120 15 750 1050 1250 200 13 746.47 746 5.63 171.67 2.70 14 2.93 746 751 5 100 15 60 750 2/4 1050 1300 250 2.98 751 764 13 111 15 60 750 3.5 1200 1450 250 1st stand DP 3.09 764 779 30R 15 180 15 750 1200 1400 200 15 117 779 795 16 120 15 60 750 4.5 1200 1450 250 Pump Sweep / Circ out 3.30 ,30 795 810 HS 15 113 15 725 1150 1350 200 14 799.67 799 6.92 173.93 2.47 15 3.43 810 827 17 146 15 60 725 4.5 1150 1400 250 3.54 827 828 20R 1 15 15 750 1200 1450 250 Ratty slide 1 3 60 828 833 5 50 15 60 750 5 1200 1450 250 370 833 846 /0L 13 49 15 750 1200 1400 200 Inspect Derrick 13 3.96 846 860 14 140 15 60 750 5 1200 1450 250 4.06 860 878 HS 18 55 15 750 1250 1450 200 16 4.34 876 891 15 180 15 60 750 5 1250 1450 200 4.43 891 908 HS 17 170 15 750 1250 1450 200 15 893 58 892 9.39 176.07 2.65 17 4.53 908 922 14 210 15 60 750 4 1250 1450 200 4.60 922 941 HS 19 228 15 750 1250 1450 200 19 4.68 941 955 14 93 15 60 750 4 1250 1450 200 4.83 955 973 35L 18 135 15 750 1250 1450 200 18 4.96 973 987 14 168 15 80 750 4 1250 1450 200 5,04 987 1005 35L 18 90 15 750 1250 1450 200 16 988.82 985 11.97 172.12 2.81 18 524 1005 1019 14 120 15 60 750 4 1250 1450 200 5.35 1019 1035 35L 16 80 15 750 1250 1450 200 16 5.55 1035 1045 10 200 15 60 750 4 1300 1500 200 5.60 1045 1065 20L 20 120 15 750 1300 1450 150 20 5.76 1065 1075 10 86 15 60 750 4 1300 1500 200 5.87 1075 1095 20L 20 150 15 750 1300 1450 150 17 1086.18 1080 15.37 167.65 3.65 20 6.01 1095 1110 15 150 15 60 750 4 1300 1500 200 6.11 1110 1130 20L 20 171 15 750 1300 1450 150 20 623 Bha02 PDM Page 1 Debi Depth Tad Course ° P WOS RPM Flow Torque SPP ott SPP On Debt P SW SW SW HMG A211 4k.>3 Ode 93N. Pam Rale t + ,, t _ NO. u.....i' 14.* ` si za,`. ..£ =kk-i sue ._ , 1130 1144 14 105 15 60 750 4 1350 1500 150 B. 1144 1162 HS 18 154 15 750 1350 1450 100 18 6.48 1162 1176 14 210 15 60 750 4 1350 1500 150 6 1176 1194 HS 18 216 15 750 1350 1450 100 18 1181.67 1171 18.75 169.03 3.56 18 6.63 1194 1208 14 210 15 60 750 4 1350 1500 150 6.70 1208 1226 HS 18 135 15 750 1350 1450 100 18 8.84 1226 1242 16 87 15 60 750 4 1400 1550 150 7.02 1242 1258 101. 16 96 15 750 1400 1450 50 16 1.19 1258 1274 16 160 15 60 750 4 1400 1550 150 _ 19 1274.42 1258 2121 168.40 2.66 7.29 1274 1293 10L 19 127 15 750 1400 1450 50 19 7.44 1293 1303 10 120 15 60 750 4 1400 1550 150 7 1303 1320 101 17 113 15 750 1400 1450 50 17 7.68 1320 1333 13 260 15 60 750 4 1400 1550 150 7.73 1333 1351 20L 18 68 15 750 1400 1450 50 Control Dri8 80 Mr _ 18 7.99 1351 1364 13 65 15 80 750 4 1400 1550 150 8 1364 1382 201. 18 72 15 750 1400 1450 50 18 8.44 1382 1390 8 80 15 60 750 4 1400 1550 150 8 1390 1416 20L 26 74 15 750 1400 1450 50 26 8.89 1416 1422 6 60 15 60 750 4 1400 1550 150 8 • 1422 1442 HS 20 63 15 750 1400 1450 50 - 20 9.30 1442 • Bha02 PDM Page 2 Schlumberger RSS PERFORMANCE RECORD Well: M -10 Date / Time In: 1/13/2010 10:00 Operator. Chevron BHA NO: 5 Date / Time Out: 1/16/2010 19:00 Field - Lease: Trading Bay Directional Drillers: Mike Jeude RSS Run NO: 1 Hours In Hole: 81.0 Location: Steelhead Marty Rinke RSS Information I Vendor /Model: D &M / Xceed 675 Control Collar Serial No: Bias Unit Stab Size: Rotary RPM: 150 Pickup WT: 205 CU Serial NO: CRS -AA -177 Bias Unit Serial No: Control Collar Stab Size: 91/8 Slackoff WT: 140 Impeller Type: Extension Sub Serial No: Flex Collar Length: Rotating WT: 160 Tool Type Stab size above CC: Torque On/Off Btm: 12/14 Dit Data I Oriented Neutral Total Strokes: 179 Casing Size: 13 3/8' Bit #: 3 Size: 91.4 DRLG HRS: 43.67 Bit RPM: 150 150 Flow Rate: 750 Casing WT: 68# Make: Smith IADC: M223 Footage: 4278 Weight on Bit: 8 8 Pump Pressure: 2150 Casing Shoe h: 1404' Model: Mdi 616 Bit REVS: 386,472 "P" Rate: 98.0 Hours: 27.47 16.20 RIG Pumping HRS: 61.70 Mude Type: Gem S / N: JD2520 Jets: 6 x 13 Depth In: 1462 FTG: 2151 2127 Drilling HRS: 43.67 Mud Weight: 9.2 Grade: 6- 4- CR- C- X- I -WT -PR Depth Out: 5740 "P" Rate: 78 131 CIRC & Ream HRS: 18.03 PV/ YP: 13/ 19 Formations: % FTG: 50 50 RSS HRS In: 0 Solids / Sand: 4.7 / .1 Reason For Trip: PR % Time: 63 37 _ RSS HRS Out: 61.70 _ Down Hole Temp: 130° Depth Depth "P' Downlink Tool Power W08 RPM Flow Torque SPP On SVY SW SW Hoe AZ'M 131.,8 IDEA4. NMI End Rate a Face Set % 14b1a Clan Gelitalti K Rile. oel Comments NO. Meth TVS Angle DIR /t00FT Leratifft - BR Thee . • 1462 1546 194 1 8 2 0 80 6 130 650 2.5 - 4 1125 21 1486.93 1452 27.69 165.97 3.1 67 0.43 1546 1841 190 1 & 2 0 80 8 130 600 2.5 -4.5 1150 22 1582.12 1534 32.44 165.78 4.99 76 0.93 1641 1736 197 3 15R 60 8 130 650 4 1150 23 1676.74 1612 36.30 168.00 4.29 57 1.42 1736 1831 178 3 15R 60 8 130 650 4 1150 24 1772.04 1687 40.19 169.64 4.22 57 1.95 1831 1926 190 4 & 5 151 60 8 130 650 4 1150 25 1865.73 1757 43.93 170.02 4.00 57 2.45 1926 2018 190 6 45L 20 8 130 650 4 1150 26 1960.35 1823 47.36 168.61 3.78 18 2.93 2018 2115 119 7,8,9 IH 8 130 650 4 1150 down /degree 27 2056.24 1887 47.93 166.81 1.51 3.74 2115 2211 222 7,8,9 IN 8 150 650 5 1150 28 2151.78 1952 47.27 166.90 0.89 4.18 2211 2305 217 10 IH 8 150 650 5 1200 down .3 degree 29 2246.17 2016 46.80 164.91 1.62 4.62 2305 2400 228 11 11-1 20 8 150 650 5 1200 20R 30 2340.75 2081 46.86 164.16 0.58 19 5.04 2400 2495 204 11 IN 20 8 150 650 5 1200 31 2434.37 2145 48.65 165.55 1.10 19 5.50 2495 2589 176 11 III 20 8 150 850 5 1200 32 2530.68 2211 46.59 166.99 1.09 19 6.03 2589 2685 206 12 IN 8 150 650 5 1200 33 2625.61 2276 46.68 169.40 1.85 6.50 2685 2780 238 12 IH 8 150 650 5 1200 34 2720.25 2341 46.87 169.74 0.33 6.90 2780 2875 143 13 132L 60 8 150 650 5 1200 35 2815.13 2406 46.87 167.65 1.61 57 7.56 2875 2969 235 13 1441 60 8 150 650 5 1200 36 2909.91 2472 44.34 163.43 4.15 56 7.96 2969 3064 228 13 1441 60 8 150 650 5 1200 37 3005.37 2543 40.92 159.23 4.66 57 8.37 3064 3159 184 13 1441 60 8 150 650 5 1200 38 3099.27 2815 37.83 154.99 4.36 57 8.88 3159 3253 226 13 1441. 60 8 150 650 5 1200 39 3194.04 2692 34.55 150.62 4.40 56 9.29 3253 3348 228 13 1441- 60 8 150 650 5 1225 40 3288.77 2771 32.15 145.80 3.77 57 9.70 3348 3443 168 13 1441 60 8 150 650 6 1225 41 3383.49 2853 28.25 139.33 5.36 57 10.27 3443 3537 194 13 144L 60 8 150 650 6 1225 42 3478.24 2938 24.59 132.80 4.93 56 10.76 3537 3632 219 13 144L 60 8 150 700 6 1600 43 3573.16 3025 21.07 124.23 5.09 57 11.19 3632 3686 191 13 1441 80 8 150 700 6 1600 32 11.47 3686 3727 224 14 8415 72L 40 8 150 700 6 1600 44 3667.96 3114 17.59 115.43 4.78 16 11.65 • 3727 3822 190 14 8 15 72L 40 8 150 700 6 1600 45 3762.71 3205 17.86 106.18 2.98 38 12.15 3822 3916 138 94 8 15 721 40 8 150 700 6 1625 46 3857.53 3295 19.28 97.96 3.14 38 12.83 3916 4011 219 14 8 15 721 40 8 150 700 6 1625 47 3952.38 3384 20.49 91.71 2.58 38 13.26 4011 4031 92 14 8 15 721 40 8 150 700 6 1875 8 13 48 4031 4106 110 16 8 17 781 60 8 150 700 6 1675 48 4043.19 3469 21.63 85.04 2.92 45 14.17 4106 4200 131 18 8 17 781 60 8 150 725 6 1750 49 4142.25 3561 22.30 70.56 5.50 56 14.89 4200 4296 165 16 8 17 781. 60 10 150 725 10 1750 50 4236.84 3648 23.60 60.22 4.47 58 15.48 4296 4390 125 16 8 17 78L 60 10 150 725 11 1750 51 4331.65 3734 24.95 49.21 4.97 56 16.23 4390 4435 142 16 8 17 781 60 10 150 725 11 1800 52 4426.40 3820 26.15 40.71 4.07 27 16.55 4435 4485 70 18 481 60 10 150 725 12 1800 30 17.27 4485 4580 116 18 481 60 10 150 725 13 1800 53 4517.82 3901 28.80 34.88 4.13 57 18.08 4580 4675 143 19820 121 60 10 150 725 13 1800 54 4615.57 3985 32.29 29.70 4.47 57 18.75 4675 4770 121 21 121 50 10 150 725 13 1850 55 4711.25 4064 36.04 26.45 4.36 48 19.54 4770 4865 133 21 121 50 10 150 725 13 1850 56 4805.91 4139 39.52 25.72 3.71 48 20.26 4865 4960 80 21 121 50 10 150 725 13 1850 57 4900.39 4210 43.22 24.75 3.97 48 21.44 4960 5054 138 21 12L 50 10 150 725 14 1875 58 4995.48 4277 46.72 24.37 3.69 47 22.12 5054 5138 62 21 121 50 10 130 725 15 1800 42 23.47 5138 5149 73 22 8 23 181 60 10 130 700 15 1825 59 5090.78 4340 49.97 24.04 3.42 7 23.62 5149 5244 45 22 & 23 181 80 10 150 700 16 1850 60 5185.50 4399 53.29 23.50 3.53 57 25.74 5244 5339 90 22 8 23 181 60 10 150 700 15 1875 61 5280.29 4454 56.77 23,80 3.68 57 26.79 5339 5349 43 22 8 23 181 60 10 150 700 15 1875 6 27.03 BHA 05 Xceed Page 1 DO Mil 0e01 "P" Down Link Tool Power WO9 RPM Row Torque SPP On SW SW SW t+le VIA DL$ ()Opted toki. .. � 5349 5390 21 24 &25126 24L 70 8 150 700 15 1875 Swap to MWD An 0 233 .8 0 2 X 62 5375.22 4504 59.4 2 . 7 8 29 2 a =•; a 2 9.. .tea 8. 00 5390 5419 12 27&28 36L 80 8 150 700 15 1875 23 31.38 5419 5434 15 29 36L 100 B 150 700 15 1875 15 32.34 5434 5479 39 29 36L 100 8 150 700 15 1875 63 5469.86 4549 63.61 20.71 5.19 45 33.50 5479 5520 51 30 36L 80 8 150 700 15 1900 33 34.30 5520 5529 26 31 36L 90 8 150 700 15 2000 8 34.65 5529 5595 17 31 36L 90 10 150 750 14 2100 59 38.65 5595 5612 15 31 36L 80 10 150 750 14 2100 14 39.80 5612 5623 22 32 42L 80 12 150 750 14 2100 64 5564.63 4588 67.63 18.60 4.70 9 40.30 5623 5670 50 32 42L 80 14 150 750 14 2100 38 41.23 5670 5718 39 33 42L 90 14 150 750 14 2100 43 42.47 5718 5737 22 33 42L 90 12 150 750 14 2100 65 5658.94 4621 71,02 16.28 4.27 17 43.33 5737 5740 9 34 &35 24L 100 12 150 750 14 2150 3 43.64 5740 • _ BHA 05 Xceed Page 2 " Schlumberger RSS PERFORMANCE RECORD Well: M -10 Date / Time in: 1/162010 20:00 Operator: Chevron BHA NO: 6 Date / Time Out 1/18/2010 13:30 Field - Lease: Trading Bay Directional Drillers: Mike Jeude MSS RSS Run NO: 2 Hours In Hole: 41.5 Location: Steeihead Marty Rinke InkinnatlOn j Vendor /Model: D&M / Xceed 675 Control Collar Serial No: Bias Unit Stab Size: 9178 Rotary RPM: 150 Pickup WT: 235 CU Serial NO: CRS -AA -177 Bias Unit Serial No: Control Collar Stab Size: Slackoff WT: 135 Impeller Type: Extension Sub Serial No: Flex Collar Length: Rotating WT: 170 Tool Type Stab size above CC: Torque On/Off Btm: 14/17 E it Data ( Oriented Neutral Total Strokes: 183 Casing Size: 13 3/8" Bit #: 4 Size: 91/4 DRLG HRS: 19.12 Bit RPM: 150 150 Flow Rate: 770 Casing WT: 68# Make: Smith IADC: M223 Footage: 1200 Weight on Bit: Pump Pressure: 2600 Casing Shoe Depth: 1404' Model: Mdi 616 Bit REVS: 145.848 "P" Rate: 62.8 Hours: 12.82 6.30 RIG Pumping HRS: 27.11 Mude Type: Gem S / N: JD2519 Jets: 6 x 13 Depth In: 5740 / 4645 FTG: 793.1 407 Drilling HRS: 19.12 Mud Weight: 9.2 Grade: 1- 1- CT- N- 0- X -ER -TD Depth Out: 6940 / 5105 "P" Rate: 62 65 CIRC & Ream HRS: 7,99 PV /VP: 14/16 Formations: % FTG: 66 34 RSS HRS In: 61.70 Solids / Sand: 4/.1 Reason For Trip: TD % Time: _ 67 _ 33 RSS HRS Out: 88.81 Down Hole Terre: 135° Depth D e p t h " P ' O w n Tool Power WOS RPM Flaw Torture SPP On SW SW . 5W Hole And t 8 w E IDE* ; Beat End Rate 1R Fec. Sat % tt s Mtn t K Ftlbs Poi Continents NO. Death 1VD Mute OIR i'1Gt1FT ` tet't"itrie 5740 5780 33 37838 301. 100 6 160 720 14.5 2150 10 122 5780 5815 45 39 241. 100 6 180 740 14.5 2150 66 5755.98 4650 74.36 15.04 3.65 35 2.01 5815 5866 75 39 241 100 6 150 650 12.5 1700 51 2.69 5866 5895 50 40441442 901. 20 6 130 650 14 1700 6 3.27 5895 5910 41 43 1081. 20 6 130 700 14 2000 67 5851.52 4672 79.49 12.89 5.80 3 3.63 5910 5936 65 43 1081 50 6 130 700 14 2000 13 4.03 5936 5946 50 44 132R 50 6 130 700 14 2100 5 4.23 5946 5997 55 45 132R 100 6 130 700 14 2100 51 5.16 5997 6004 20 46 168R 100 8 130 700 14.5 2100 68 5945.04 4687 82.21 11.06 3.49 7 5.51 6004 6056 71 47 168R 0 8 130 700 14.5 2100 6.25 6056 6099 74 48 144R 100 8 120 700 16 2100 69 6039.83 4700 81.14 8.52 2.98 43 6.84 6099 6135 80 49850 144R 0 8 120 700 17 2100 7,29 6135 6187 116 51 144R 80 8 120 700 17 2100 42 7.74 6187 6193 51 52 144R 60 8 120 700 17 2100 70 6134.49 4717 78.80 8.22 2.48 4 7.85 6193 6242 86 52 144R 60 8 120 700 16.5 2100 29 8.42 6242 6288 67 53454 168R 80 8 120 700 16.5 2100 71 6229.47 4738 75.01 9.78 4.30 37 9.10 6288 6370 81 53854 168R 80 8 120 700 16.5 2100 66 10.12 6370 6383 49 55 1888 70 8 120 700 16.5 2100 72 6324.39 4767 69.72 10.38 5.61 9 10.39 6383 6478 70 55 168R 70 8 120 700 16.5 2100 73 6419.01 4803 65.70 10.98 4.29 67 11.75 6478 6573 114 55 168R 70 8 120 700 16.5 2100 74 6513.68 4846 60.83 10.50 5.16 67 12.58 6573 6667 71 56857 144 60 8 120 700 16.5 2100 75 6608.41 4895 56.09 10.95 5.02 56 13.92 6667 6762 92 56857 144 60 8 120 700 16.5 2100 76 6703.46 4950 52.76 13.05 3.94 57 14.96 6762 6857 41 56457 144 60 8 120 700 16.5 2100 77 6798.16 5010 49.10 14.98 4.18 57 17.29 6857 6940 45 56457 144 60 8 120 700 16.5 2100 78 6880.80 5085 46.92 15.38 2.66 50 19.12 6940 • BHA 06 Xceed Page 1 Schlumberger RSS PERFORMANCE RECORD Well: M -10 Date / Time In: 1/23/2010 7:00 Operator: Chevron BHA NO: 10 Date / Time Out: 1/24/2010 1:30 Field - Lease: Trading Bay Directional Drillers: Mike Jeude RSS Run NO: 5 Hours In Hole: 18.5 Location: Steelhead Marty Rinke RSS r Vendor/Model: D&M / Xceed675 Control Collar Serial No: Bias Unit Stab Size: 9 1/S Rotary RPM: 140 Pickup WT: 175 CU Serial NO: CRS -AA -177 Bias Unit Serial No: Control Collar Stab Size: 9 1/8 Slackoff WT: 135 Impeller Type: Extension Sub Serial No: Flex Collar Length: Rotating WT: 155 Tool Type Stab size above CC: Torque On/Off Btm: 6/8 Oft Data I Orrertat • Total Strokes: 155 Casing Size: 13 3/8" Bit #: 4RR Size: 91/4 DRLG HRS: 3.15 Bit RPM: 140 140 Flow Rate: 650 Casing WT: 68# Make: Smith IADC: M223 Footage: 434 Weight on Bit: 10 10 Pump Pressure: 1400 Casing Shoe Degsth: 1404' Model: Mdi 616 Bit REVS: 36.720 "P" Rate: 84.3 Hours: 2.83 2.32 RIG Pumping HRS: 11.50 Mude Type: GEM S / N: J02519 Jets: 6x14 Depth In: 4004 FTG: 210.4 224 Drilling HRS: 5.15 Mud Weight: 9.3 Grade: 2- 2- WT- A- X- I- CT -Bha Depth Out: 4438 "P" Rate: 74 97 CIRC & Ream HRS: 6.35 PV / YP: 13/15 Formations: % FTG: 48 52 RSS HRS In: 100.60 Solids / Sand: 4/.10 Reason For Trip: BHA % Time: 55 45 RSS HRS Out: 112.10 Down Hole Temp: 100° Depth Meth • Wren Lk1k Toot Power WCB RPM Flew Torque SPP On ' SW - SW ;SW lido t : WA . i 4 -< 4059 4153 106 36R � 0 8 to 10 100 x 600 K F 0 , 1200 79 4093 F i" ss T ai° # r i <ti -_ °s xL tom. 4004 4059 110 36R 0 8 to 10 100 600 10,0 1200 Hit cement 4004' 0 50 61 3515 22.78 85.77 2.35 1.38 4153 4205 101 36R 0 8 to 10 100 600 11 1250 Called sidetrack a 4093' 80 4142.46 3560 21.80 85.56 2.01 1.89 4205 4249 55 1 0 70 6 t 8 100 600 11 1300 81 4189.22 3604 21.86 85.85 0.26 31 2.69 4249 4343 55 283 84L 90 6 t 8 140 600 11.5 1300 Reboot Epic _ 82 4283.96 3691 23.92 81.26 2.88 85 4.40 4343 4374 78 485 72L 100 6 t 8 140 650 11.5 1400 _ 83 4316.36 3721 24 16 77.45 4.85 31 4.80 4374 4412 190 485 72L 100 6 t 8 140 650 11.5 1400 84 4351.85 3753 24.78 73.35 5.08 38 5.00 4412 4438 195 485 72L 100 610 8 140 650 11.5 1400 _ 85 4378.78 3577 25.39 70.23 5.41 26 5.14 4438 • I BHA 10 Xceed Page 1 • e Schlvmberger PDM PERFORMANCE RECORD Well: M -10 Date / Time In: 1/2412010 3:30 Operator: Chevron BHA NO: 11 Date / Time Out: 1/25/2010 22:00 Field - Lease: Trading Bay Directional Drillers: Mate Jeude PDM Run NO: 2 Hours In Hole: 42.5 Location: Steelhead Ted Neville Motor infonnathm I Vendor/Model: SLB D &M / PowerPak XP Type Bend: 0.3 ADJ. Power HSG OD: 6 3/4 PDM RPM: 162 Pickup WT: 215 Degree Bend: 1.5 Stabilizer Type: Straight By -Pass Jet: Blank RPM / GAL: 0.280 Sladrof WT: 140 Serial NO: A675- 24X100 Blade Length: 1.25 Top Connection: 4 1/2 IF Rotary RPM: 60 Rotating WT: 160 Con uration: 7/8 5.0 STAB Gauge: 9 1/8 BTM Connection: 4 1/2 Reg Bearing Type: Mud Torque On/Off Btm: 15 / 9 Bit Data Slide Rotate Total Strokes: 140 Casing Size: 13 3/8" Bit* 5 Size: 9 1/4 Drill Hours: 18.10 Bit RPM: 162 222 Flow Rate: 580 Casing WT: 88# Make: Smith IADC: Footage: 667 Weight on Bit: 10-25 3 -25 Pump Pressure: 1650 / 1757 Casing Shoe Depth: 1404' Model: FOS+ Bit REVS: 197,906 'P" Rate: 36.8 Hours: 12.12 5.98 RIG Pumping HRS: 30.06 Mud Type: GEM S / N: PP1397 Jets: 3x18 Depth In: 4438 FTG: 378 289 Drilling HRS: 18.10 Mud Weight: 9,3 Grade: 4-3-WT-3-E-2-ER-ROP Depth Out: 5105 "P" Rate: 31 48 CIRC & Ream HRS: 11.96 PV / VP: 14 / 15 Formations: % FTG: 57 43 PDM FIRS In: 0 Solids / Sand: 4.2 / .1 Reason For Trip: ROP / Torque % Time: 67 33 PDM HRS Out: 30.06 Down Hole Temp: 115 Depth Moth Toot Como 'P" W05 Flow Tomo SPPoff SPPOn Dena SW SW SW Hole AZM 01:13 Slide Booth End, Foto Wall ! Rya. CrAiati KHts eel aM psi Comments NO, Deeh WO Anae MR Men LAsatt 89- 4438 4442 4 17 8 60 580 9.5 - 11 1600 1700 100 Wash Down P14256' to 4438' 0.24 4442 4447 5 38 15 60 580 9.5 1625 1700 75 no fill 0.37 4447 4470 64L 23 73 20 580 1625 1800 175 86 4467.00 3856 28.18 60.55 5.85 23 0.69 4470 4477 7 84 18 60 580 10 1650 1825 175 0.77 4477 4503 601 28 82 22 580 1650 1800 150 26 1.08 4503 4509 6 51 18 60 580 10 1650 1825 175 1.19 4509 4535 SOL 26 56 22 580 1650 1800 150 26 166 4535 4540 5 60 16 60 580 10 1650 1800 150 1.74 4540 4565 60L 25 56 22 580 1650 1775 125 87 4561.00 3936 34.58 49.83 9.00 25 2.19 4565 4572 7 42 18 60 580 9.5 1650 1700 50 2.36 4572 4577 5 27 18 60 580 10 1650 1725 75 2.55 4577 4597 60L 20 48 22 580 1650 1750 100 20 2.88 4597 4812 15 53 18 60 580 10 1650 1775 125 324 4612 4630 601 18 39 22 580 1650 1725 75 18 3.70 4630 4640 10 67 18 60 580 10 1650 1725 75 3.85 4640 4658 501 18 47 18 580 1650 1725 75 88 4658.10 4013 38.00 42.10 6.01 18 4.23 4658 4670 12 72 15 60 580 10 1650 1725 75 4.39 4670 4689 60L 19 44 18 580 1650 1725 75 19 483 4889 4702 13 41 16 60 580 10 1650 1775 125 5.15 4702 4720 80L 18 20 16 580 1650 1750 100 18 8.03 4720 4725 5 27 16 60 580 9 1650 1775 125 6.21 4725 4733 8 44 14 60 580 9 1650 1775 125 6.39 4733 4752 SOL 19 37 16 580 1850 1725 75 19 ' 6.90 4752 4762 10 46 14 60 580 10 1650 1750 100 7.12 4762 4791 SOL 29 38 15 580 1650 1725 75 89 4746.74 4083 41 52 34.35 6,70 29 7.88 4791 4803 12 103 15 60 580 10 1650 1750 100 8.00 4803 4813 SOL 10 29 15 580 1650 1725 75 10 8.35 • 4813 4820 7 42 15 60 580 10 1650 1750 100 8.52 4820 4840 SQL 20 67 15 580 1650 1725 75 20 8.82 4640 4856 16 37 15 60 580 10 1650 1750 100 90 4848.67 4155 46.36 27.34 6.86 9.25 4856 4871 401. 15 45 15 580 1650 1725 75 15 9.59 4871 4890 19 67 15 60 580 10 1650 1750 100 9.87 4890 4905 401. 15 21 15 580 1650 1725 75 15 10.57 4905 4919 14 105 15 60 580 10 1650 1750 100 10.71 4919 4934 501 15 18 15 580 1650 1725 75 15 • 11.56 4934 4951 17 64 15 60 580 10 1650 1750 100 91 4940.78 4218 50.46 22.49 5.81 11.82 4951 4967 501 16 28 15 580 1650 1725 75 16 12 39 4967 4982 15 53 15 60 580 10 1650 1750 100 12 67 4982 4998 501. 16 44 15 580 1650 1725 75 16 1304 4998 5009 11 51 15 60 580 10 1650 1750 100 13.25 5009 5025 501 16 25 15 580 1650 1725 75 16 13.90 5025 5045 20 63 15 60 580 10 1650 1750 100 92 5028.13 4271 53.89 16.52 6.67 1421 5045 5049 401. 4 3 24 580 1650 1725 75 4 15.70 5049 5075 26 60 16 60 580 10 1650 1750 100 16.14 5075 5077 30L 2 12 24 580 1650 1725 75 2 16.30 5077 5084 7 26 16 60 580 10 1850 1725 75 16 5084 5095 11 22 12 tot: 60 580 10 1850 1725 75 17.07 5095 5098 301_ 3 6 25 580 1650 1675 25 Short trip to 3900' 3 17.54 5098 5100 2 30 15 60 580 10 1650 1725 75 17.60 5100 5105 30L 5 11 25 580 1650 1675 25 TOOH for BHA - ROP/Torque 5 18.06 BHA11 PDM Page 1 Schlumberger RSS PERFORMANCE RECORD Well: M -10 Date / Time In: 1/25/2010 22:00 Operator: Chevron BHA NO: 12 Date / Time Out: 1/27/2010 4:00 Field - Lease: Trad ng Bay Directional Drillers: Mike Jeude RSS Run NO: 6 Hours In Hole: 30.0 Location: Stee`head Ted Neville RSS Information Vendor/Modcl: D &M / Xceed675 Control Collar Serial No: Bias Unit Stab Size: 9 1/8 Rotary RPM: 140 Pickup WT: 200 CU Serial NO: CRS -AA -177 Bias Unit Serial No: Control Co lar Stab Size: 9 1/8 Slackoff WT: 135 Impeller Type: Extension Sub Serial No: Flex Collar Length: Rotating WT: 160 To� TYPe Stab size above CC: Torque On /Off Btm: 13/9 Bit Data 1 Oriented Neutral Total Strokes: 179 Casing Vie: 13 3/8" Bit #: 4RH2 Size: 9 1/4 DRLG HRS. 16.83 Bit RPM: 140 140 Flow Rate: 750 Casing WT: 68# Make: Smith IADC: M223 Footage: 606 Weight on Bit: 10 10 Pump Pressure: 2100 Casing Shoe Depth: 1404' Model: Mdi 616 Bit REVS: 130,998 "P" Rate. 36.0 Hours: 12.25 4.58 RIG Pumping HRS: 21.26 Mud° Type: GEM SIN: JD2519 Jets: 6x14 Depth In: 5105 FTG: 360.9 245 Drilling HRS: 16.83 Mud Weight: 9.3 Grade: 5- 4- RO- A- X -I -HC -BHA Depth Out: 5684 "P" Rate: 29 53 CIRC & Ream HRS: 4.43 PV / YP: 13/15 Formations: % FTG: 60 40 RSS HRS In: 112.10 Solids 1 Sand: 4 /.10 Reason For Trip: BHA % Time: 73 27 RSS HRS Out 133.36 Down Hole Temp: 100° Depth Depth IDEAL Down Link Tool Power WOB RPM Flow Torque SPP On SVY SVY SVY Hole AZM DLS Oriented Oriented Begin End Bit Time # Face Sot % Klhs C /Min OallM +n K Ftgbs Psi Comments NO - Depth TVD Angle DIR 100FT Length Time `1 1 5133 0 49 1 12L 130 8 l0 10 1 "1 750 13 9 2000 9'1 5137.70 4333 57.65 14 79 3 7 29 5133 5197 2 21 1 12L 100 810 10 100 750 13 2000 64 10 5197 5215 2 44 2 18L 100 810 10 100 750 13 2000 18 14 5215 5291 4.95 2 18L 100 810 10 110 750 13 2000 94 5213.23 4379 6394 1524 6.69 76 151 5291 5323 3.74 2 18L 1017 810 10 140 /50 16 2000 32 73 5323 5386 4.20 384 36L 80 8 t 10 140 750 16 2000 95 5327,23 4416 70.37 14.10 6.83 50 22 5386 5400 4.30 3 &4 36L 80 8 t 10 140 150 16 2000 11 5 5400 5469 4.81 586 72L 40 8 t 10 140 750 18 2000 96 5419.79 4443 74.30 12.13 4.71 28 12 5469 5481 4.97 5 &6 72L 40 8to 10 140 750 18 2000 5 4 5481 5575 7,06 7 72L 0 8 to 10 140 750 16 2000 97 5515.35 4469 75 01 12.59 0.88 55(5 5620 9.20 8 72L 40 8 t 10 140 750 16 2000 98 5606.85 4493 74.98 12 00 0.60 18 51 5620 5649 13.03 9 -11 12L 90 8 t 10 140 750 16 2000 26 207 5649 5671 15 98 9 -11 12L 90 8 t 10 140 750 16 2000 20 159 5671 5680 16 44 12 12L 100 8 t 10 140 750 16 2000 9 28 5680 5684 16.83 12 12L 100 8 to 10 140 750 16 2000 Insuffclent DLS PR04 5684 00 4512 75 40 12.00 0.50 4 23 5684 POOH i. • 1 I " BHA 12 Xceed Page 1 ■ Schiu rger RSS PERFORMANCE RECORD s1YY11 11, �i (irlr Well: M -10 Date / Time In: 2/3/2010 19:30 Operator: Chevron BHA NO: 17 Date / Time Out 2/8/2010 6:00 Field - Lease: Trading Bay Directional Drillers: Mike Jeude RSS Run NO: 7 Hours In Hale: 106.5 Location: Steelhead Marty Rinke R8 I endorfMode(: D &M 1 PowerDrive475 Control Collar Serial No: Bias Unit Stab Size: 6 118 Rotary RPM: 140 Pickup WT: 172 CU Serial NO: 1103.° Bias Unit Serial No: 50809 Control Collar Stab Size: 6 Slackoff WT: 110 Impeller Type: Medium Extension Sub Serial No: Flex Collar Length: Rotating WT: 138 Tool Type X5 Stab size above CC: SLICK Toque On/Off Btm: 12.5 Bit Doto 1 *awe Total Strokes: 74 Casing Size: 7 Bit #: 8 Size: 6 1/8 DRLG HRS: 30.32 Bit RPM: 140 Flow Rate: 260 Casing WT: 26 Make: Smith IADC: Footage: 1690 Weight on Bit: 10 10 Pump Pressure: 2100 Casino Shoe D: 5.790 Model: Msi613 Bit REVS: 239.028 "P" Rate: 55.7 Hours: 15.00 15.32 RIG Pumping HRS: Mude Type: Baradril -n S / N: J02642 Jets: 6 x 12 Depth In: 5830 FTG: 695.15 995 Drilling HRS: 30.32 Mud Weight: 8.8 Grade: 1- 1- BT- S- X- I -NO -TD Depth Out: 7520 'P" Rate: 46 65 CIRC & Ream HRS: PV / VP: 7/20 Formations: D2 % FTG: 41 59 RSS HRS In: 7.60 Solids / Sand: 1.7 / 0 Reason For Trip: TD % Time: 49 51 RSS HRS Out: Down Hole Temp: 118° WM Depth "P` form Lk* Toot Mower WOB RPM Fla_ w Tarim &PP On " SW sW SW sow 4+2M Ms. _ URAL 41, ik1991 End. Rate # . F Set % Kos K Ft*bs psi Contemn% NtS. tleaih Tv0 AI*. t - "Whin w 5830 5839 6 1 0 100 9 85 260 8.5 1550 9 1.53 5839 5935 32 1 0 100 9 85 260 8.5 1550 103 5898.80 4553 83.95 7.68 5.55 96 4.52 5935 6022 82 1 0 100 9 130 260 10.5 1625 87 5.59 6022 6030 60 2 IH 20 9 140 260 10.5 1675 IH wrth 88.5 on pd Inc 104 5994.64 4560 88.22 6.77 4.55 2 5.72 6030 6081 87 3 IH L 50 9 140 260 10.5 1875 26 6.30 6081 - 6114 71 4 IH L 80 9 140 260 10.5 1675 .5 Bump up 88.8 on pd inc 105 6088.56 4562 89.35 4.29 2.90 26 6.77 6114 6125 41 5 IH L 80 9 140 260 10.5 1675 .5 Bump up 89.2 on pd inc 9 7.03 6125 6154 79 5 IH L 80 9 140 260 10.5 1675 23 7.39 6154 6220 92 6 IH L 80 9 140 260 10.5 1675 .5 Bump up 89.6 on pd inc - 106 6183.94 4562 91.13 1.63 3.36 53 8.11 6220 6228 96 7 IH 20 9 140 260 10 1675 IH with 90.5 on pd Inc 2 8.20 6228 6315 104 8 IH D 20 9 140 260 10 1675 .5 down with 90.4 on pd inc 107 6278.36 4561 90.14 0.75 1.40 17 9.04 6315 6410 106 9 IH D 20 9 140 260 10 1675 Geo wants 89+ now .5 Bum 108 6373.69 4560 89.97 0.81 0.19 19 9.94 6410 6425 90 10 IH D 40 9 140 260 10 1675 Geo wants 88 now .5 Bump 6 10.10 6425 6465 80 10 IH D 40 9 140 260 10 1675 showing 89.4 16 10.60 6465 6505 73 11 IH D 40 9 140 260 10 1675 Geo wants 88.5 109 6469.57 4561 88.97 0.33 1.16 18 11.15 6505 6600 93 11 IH 20 9 140 260 10 1675 110 6564.80 4563 88.52 359.78 0.76 19 1216 6600 6631 98 12 IH 20 9 140 260 10 1675 6 12.48 6631 6693 98 12 IH 20 9 140 260 10 1675 111 6660.43 4566 88.83 359.67 0.34 12 13.12 6693 6715 120 12 IH 20 9 140 260 10 1675 4 13.30 6715 6727 27 13 IH R 50 9 - 140 260 10 1675 Extend well - right tum for p 6 13.75 6727 6791 27 14-15-16 iH NU 70 9 140 260 10 1675 Geo wants 91 -at 88.7 112 6754.96 4566 90.45 0.01 1.75 45 16.13 6791 6888 78 17 IH 25 9 140 260 10 1675 25R 113 6850.90 4565 90.82 1.42 1.52 24 17.38 6888 6898 15 17 IH 25 9 140 260 10 1675 3 18.03 6898 6982 14 18 IH R 40 9 140 260 10 2000 .5 NUDGE UP TO 91+ 114 6946.21 4564 90.72 1.32 0.15 34 23.89 6982 6990 69 19 IH R 40 9 150 260 9.5 2000 .5 NUDGE UP TO 91.5+ 3 24.00 6990 7075 44 19 IH R 25 9 140 260 9.5 2000 115 7042.11 4562 91.89 2.71 1.89 21 25.94 7075 7173 96 19 IH R 25 9 140 260 9.5 2000 116 7137.44 4559 91.78 2.67 0.12 25 26.98 7173 7223 111 19 IH R 25 9 140 260 9.5 2000 117 7232.97 4556 91.17 3.69 1.24 13 27.41 7223 7269 106 20821 IH R 25 9 140 260 9.5 2000 (2) Nudges down.5 -91 inc 118 7328.37 4565 90.65 3.56 0.56 12 27.84 7269 7363 103 20821 IH R 25 9 140 260 9.5 2000 119 7424.76 4555 89.31 3.35 1.41 24 28.75 7363 7459 99 20 &21 IH R 25 9 140 260 9.5 2000 120 7484.09 4556 89.49 2.99 0.68 24 29.72 7459 7520 105 20&21 IH R 25 9 140 260 9.5 2000 TO 15 30.30 7520 BHA17 X5 Page 1 Schlumberger RSS PERFORMANCE RECORD Well: M -10 Date I Time In: 1/27/2010 11:30 Operator: Chevron BHA NO: 13 Date I Time Out: Field - Lease: Trading Bay Directional Drillers: Mks Jeude RSS Run NO: 7 Hours In Hole: Location: Steelhead Ted Neville _ RSS I Vendor/Model: D &M / Xceed675 Control SeriaTNo: Bias Unit Stab Size: 91/8 Rotary RPM: 80 Pickup WT: 200 CU Serial NO: CRS -AA -177 Bias Unit Serial No: Control Collar Stab Size: 91/8 Slackoff WT: 135 Impeller Type: Extension Sub Serial No: Flex Collar Length: Rotating WT: 160 Tool Type Stab size above CC: Torque On/Off Btm: 13/9 aft tea 1 Total Strokes: 179 Casing Size: 133/8" Bit #: 5 RR 1 Size: 91/4 DRLG HRS: 7.00 Bit RPM: 80 Flow Rate: 750 Casing WT: 68# Make: Smith IADC: M223 Footage: 116 Weight on Bit: 10 10 Pump Pressure: 2100 Casino Shoe D: 1404' Model: FDS+ Bit REVS: 33,600 "P" Rate: 16.6 Hours: 7.00 RIG Pumping HRS: Mude Type: GEM S / N: PP1397 Jets: 3 X 18 Depth In: 5684 FTG: 100 16 DriNing HRS: 7.00 Mud Weight: 9.3 Grade: Depth Out: "P" Rate: 14 #DIV/0! CIRC & Ream HRS: PV / YP: 13/15 Formations: % FTG: 86 14 RSS HRS In: 133.36 Solids / Sand: 4/.10 Reason For Trip: BHA % Time: 100 RSS HRS Out: Down Hole Temp: 1000 Olorit " ,. , , t3ataMttJr&, 'Tot Power Woe � - III 5684 5700 13 1 2L 100 13 80 720 14.0 2100 99 5641.21 4502 74.51 11.01 5.3 1.23 5700 5713 24 121. 100 20 80 720 14 2100 100 5681.48 4512 74.86 11.08 0.90 13 1.77 5713 5727 17 12L 100 20 80 650 14 1850 . 101 5712.90 4520 75.81 9.99 4.50 14 2.58 5727 5800 17 121_ 100 20 80 650 14 1850 102 5737.83 4526 77.28 9.25 6.60 73 7.00 5800 TD 1/28/2010 4:36 AM Proi 5800.00 4539 79.65 8.20 4.20 • • BHA 13 Xceed Page 1 Schiumberger Section 5 Directional Surveys M -10P61 and M -10 :heron NW Schiumberger Y p M -10PB1 Surve Re ort Report Date: 22-Jan-10 Survey I DLS Computation Method: Mnimum Curvature / Lubnski Client: Chevron Vertical Section Azimuth: 10.000° Field: Trading Bay Unit Vertical Section Origin: N 0.000 ft, E 0.000 ft Structure I Slot: Sleelhead / leg Al slot 7 TVD Reference Datum: Rotary Table Well: M -10 TVD Reference Elevation: 160.0 ft relative to Mean Sea Level Borehole: M -10P81 Sea Bed l Ground Level Elevation: - 185.000 ft relative to Mean Sea Level UWVAPI#: 507332058870 Magnetic Declination: 18.374° Survey Name / Date: M -10PB1 / January 8, 2010 Total Field Strength: 55540.691 nT Ton I AHD / DDI I ERD ratio: 227.380° / 3922.86 ft 1 6.084 / 0.768 Magnetic Dip: 73.639° Grid Coordinate System: NAD27 Alaska State Planes, Zone 04, US Feet Declination Date: January 08, 2010 Location Lat/Long: N 60.83178787, W 151.60239696 Magnetic Declination Model: BGGM 2009 Location Grid NIE YIX: N 2499450290 ftUS, E 214080.250 ftUS North Reference: True North Grid Convergence Angle: - 1.39928826° Total Corr Meg North -> True North: +18.374° Grid Scale Factor: 0.99999302 Local Coordinates Referenced To: Well Head Comments Measured Inclination Azimuth Sub -Sea TVD TVD Vertical I Along Hole Closure NS DLS Northing fasting Latitude Longitude Depth True Section Departure True North True North (ft) (deg) (deg) (ft ) _ (ft) (ft) (ft) (ft) I (ft) I (ft ) (degl100ft) (ftUS) (8US) RTE 0.00 0.00 0.00 - 160.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 2499450.29 214080.25 N 60.83178787 W 151.60239696 Gyro -MWD 416.66 0.29 167.41 256.66 416.66 -0.97 1.05 1.05 -1.03 0.23 0.07 2499449.26 214080.45 N 60.83178506 W 151.60239568 451.71 0.35 214.07 291.71 451.71 -1.15 1.24 1.22 -1.20 0.19 0.74 2499449.08 214080.41 N 60.83178458 W 151.60239590 469.30 0.50 182.89 309.30 469.30 -1.28 1.37 1.33 -1.33 0.16 1.54 2499448.96 214080.37 N 60.83178425 W 151.60239610 30" Conductor 480.00 0.64 182.35 320.00 480.00 -1.38 1.47 1.44 -1.43 0.15 1.33 2499448.85 214080.37 N 60. 83178396 W 151.60239612 485.89 0.72 182.15 325.89 485.89 -1.45 1.54 1.51 -1.50 0.15 1.33 2499448.78 214080.36 N 60.83178376 W 151.60239614 504.92 0.88 166.90 344.91 504.91 -1.71 1.81 1.77 -1.76 0.18 1.39 2499448.52 214080.38 N 60.83178305 W 151.60239598 519.90 1.05 181.80 359.89 519.89 -1.95 2.06 2.02 -2.01 0.20 2.01 2499448.27 214080.40 N 60.83178237 W 151.60239586 554.73 1.64 163.19 394.71 554.71 -2.71 2.87 2.83 -2.81 0.33 2.09 2499447.47 214080.51 N 60.83178019 W 151.60239510 587.08 2.27 157.51 427.04 587.04 -3.66 3.97 3.91 -3.84 0,71 2.04 2499446.43 214080.87 N 60.83177736 W 151.60239298 • 617.93 2.89 154.35 457.86 617.86 -4.81 5.36 5.27 -5.11 1.28 2.06 2499445.15 214081.41 N 60.83177390 W 151.60238978 648.67 3.45 157.77 488.56 648.56 6.22 7.06 6.95 6.66 1.97 1.92 2499443.58 214082.05 N 60.83176964 W 151.60238594 684.29 4.17 161.83 524.10 684.10 -827 9.43 9.31 -8.89 2.78 2.16 2499441.34 214082.81 N 60.83176356 W 151.60238141 746.47 5.63 171.67 586.05 746.05 -13.16 14.72 14.59 -14.05 3.92 2.70 2499436.15 214083,83 N 60.83174943 W 151.60237498 799.67 6.92 173.93 638.93 798.93 -18.72 20.54 20.36 -19.82 4.64 2.47 2499430.36 214084.40 N 60.83173365 W 151.60237096 893.58 9.39 176.07 731.88 891.88 -31.59 33.86 33.59 -33.09 5.76 2.65 2499417.07 214085.20 N 60.83169735 W 151.60236467 988.82 11.97 172.12 825.47 985.47 -48.53 51.50 51.21 -50.63 7.65 2.81 2499399.49 214086.66 N 60.83164938 W 151.6023541C 1086.18 15.37 167.65 920.06 1080.06 -70.08 74.49 74.19 -73.24 11.80 3.65 2499376.78 214090.25 N 60.83158753 W 151.60233087 1181.67 18.75 169.03 1011.33 1171.33 -96.12 102.50 102.18 - 100.68 17.42 3.56 2499349.22 214095.21 N 60.83151248 W 151.60229933 1274.42 21.21 168.40 1098.49 1258.49 - 125.65 134.19 133.86 - 131.75 23.64 2.66 2499318.00 214100.66 N 60.83142748 W 151.60226453 1369.70 24.15 167.76 1186.40 1346.40 - 159.72 170.93 170.58 - 167.69 31.24 3.10 2499281.89 214107.38 N 60.83132917 W 151.60222194 13 -3/8" Csg 1403.00 25.15 167.20 1216.66 1376.66 - 172.55 184.81 184.46 - 181.25 34.25 3.09 2499268.26 214110.06 N 60.83129208 W 151.60220507 1486.93 27.69 165.97 1291.82 1451.82 - 206.81 222.16 221.77 - 217.57 42.93 3.09 2499231.74 214117.85 N 60.83119273 W 151.60215643 1582.12 32.44 165.78 1374.18 1534.18 - 250.32 269.83 269.39 - 263.80 54.57 4.99 2499185.24 214128.36 N 60.83106627 W 151.60209121 SurveyEditor Ver SP 2.1 Bld( users) leg Al slot 7\M- 10 \M- 10PB1 \M -10PB1 Generated 2/26/2010 11:51 AM Page 1 of 3 Measured Azimuth Vertical r Along Hole NS EW Comments Inclination Sub -Sea TVD T VD Closure DLS Northing Easting Latitude Longitude Depth True Section Departure True North True North (ft) (deg) (deg) (N) (ft) (ft) (ft) (ft) (ft) _ (ft) I (degf100ft) I (MIS) I (NOS) 1676.74 36.30 168.00 1452.27 1612.27 - 299.45 323.23 322.77 - 315.82 66.63 4.29 2499132.94 214139.15 N 60.83092398 W 151.60202363 1772.04 40.19 169.64 1527.10 1687.10 - 354.46 382.21 381.75 - 373.69 78.03 4.22 2499074.81 214149.13 N 60.83076570 W 151.6019597€ 1865.73 43.93 170.02 1596.65 1756.65 - 413.37 444.97 444.48 - 435.45 89.10 4.00 2499012.79 214158.69 N 60.83059674 W 151.60189771 1960.35 47.36 168.61 1662.79 1822.79 - 476.64 512.61 512.11 - 501.92 101.67 3.78 2498946.04 214169.63 N 60.83041493 W 151.60182731 2056.24 47.93 166.81 1727.39 1887.39 - 542.20 583.47 582.96 - 571.15 116.75 1.51 2498876.47 214183.02 N 60.83022556 W 151.60174278 2151.78 47.27 166.90 1791.82 1951.82 - 607.07 654.02 653.49 - 639.85 132.80 0.69 2498807.39 214197.38 N 60.83003763 W 151,60165288 2246.17 46.80 164.91 1856.15 2016.15 - 670.12 723.09 722.50 - 706.84 149.61 1.62 2498740.02 214212.56 N 60.82985440 W 151.60155867 2340.75 46.86 164.16 1920.86 2080.86 - 732.40 792.07 791.36 - 773.32 168.01 0.58 2498673.11 214229.32 N 60.82967255 W 151.60145562 2434.37 46.65 165.55 1985.00 2145.00 - 794.13 860.26 859.47 - 839.14 185.82 1.10 2498606.87 214245.53 N 60.82949249 W 151.6013557S 2530.68 46.59 166.99 2051.15 2211.15 - 858.20 930.26 929.45 - 907.14 202.44 1.09 2498538.49 214260.47 N 60.82930650 W 151.60126271 2625.61 46.68 169.40 2116.34 2276.34 -922.27 999.27 998.45 -974.68 216.55 1.85 2498470.62 214272.94 N 60.82912174 W 151.60118362 2720.25 46.87 169.74 2181.16 2341.16 - 986.89 1068.23 1067.37 - 1042.51 229.04 0.33 2498402.51 214283.76 N 60.82893622 W 151.60111368 2815.13 46.87 167.65 2246.03 2406.03 - 1051.40 1137.47 1136.59 - 1110.40 242.61 1.61 2498334.31 214295.67 N 60.82875050 W 151.6010378E 2909.91 44.34 163.43 2312.34 2472.34 - 1113.03 1205.17 1204.24 - 1175.96 259.46 4.15 2498268.36 214310.91 N 60.82857118 W 151.6009432E 3005.37 40.92 159.23 2382.58 2542.58 - 1169.76 1269.80 1268.50 - 1237.19 280.07 4.66 2498206.64 214330.02 N 60.82840367 W 151.60082778 3099.27 37.83 154.99 2455.17 2615.17 - 1219.79 1329.34 1327.15 - 1292.06 303.16 4.36 2498151.22 214351.77 N 60.82825357 W 151.60069842 3194.04 34.55 150.62 2531.66 2691.66 - 1264.39 1385.28 1381.50 - 1341.84 328.64 4.40 2498100.84 214376.02 N 60.82811741 W 151.60055567 3288.77 32.15 145.80 2610.80 2770.80 - 1303.23 1437.33 1431.09 - 1386.11 356.00 3.77 2498055.91 214402.29 N 60.82799632 W 151.60040241 3383.49 28.25 139.33 2692.67 2852.67 - 1335.53 1484.93 1475.05 - 1423.98 384.79 5.36 2498017.35 214430.15 N 60.82789273 W 151.60024110 3478.24 24.59 132.80 2777.53 2937.53 - 1360.43 1527.04 1512.14 - 1454.40 413.88 4.93 2497986.23 214458.49 N 60.82780952 W 151.6000781C 3573.16 21.07 124.23 2865.02 3025.02 - 1378.14 1563.81 1542.27 - 1477.43 442.50 5.09 2497962.51 214486.53 N 60.82774652 W 151.59991775 3667.96 17.59 115.43 2954.48 3114.48 - 1388.95 1595.13 1565.26 - 1493.17 469.54 4.78 2497946.11 214513.18 N 60.82770345 W 151.59976625 3762.71 17.86 106.18 3044.75 3204.75 - 1394.33 1623.92 1583.21 - 1503.37 496.43 2.98 2497935.26 214539.81 N 60.82767555 W 151.59961564 3857.53 19.28 97.96 3134.65 3294.65 - 1395.34 1654.07 • 1598.57 - 1509.59 525.90 3.14 2497928.32 214569.13 N 60.82765853 W 151.59945051 3952.38 20.49 91.71 3223.85 3383.85 - 1392.38 1686.30 1611.92 - 1512.26 558.01 2.58 2497924.87 214601.16 N 60.82765124 W 151.59927062 4043.19 21.63 85.04 3308.61 3468.61 - 1385.77 1718.90 1622.58 - 1511.28 590.57 2.92 2497925.05 214633.74 N 60.82765389 W 151.59908817 4142.25 22.30 70.56 3400.54 3560.54 - 1371.81 1755.78 1628.76 - 1503.44 626.51 5.50 2497932.01 214669.86 N 60.82767533 W 151.59888681 • 4236.84 23.60 60.22 3487.68 3647.68 - 1350.86 1792.58 1627.81 - 1488.06 659.89 4.47 2497946.57 214703.60 N 60.82771741 W 151.5986998; 4331.65 24.95 49.21 3574.15 3734.15 -1323.21 1831.46 1620.51 -1465.56 691.52 4.97 2497968.30 214735.76 N 60.82777896 W 151.59852261 4426.40 26.15 40.71 3659.66 3819.66 - 1289.76 1872.26 1607.11 - 1436.66 720.27 4.07 2497996.48 214765.22 N 60.82785799 W 151.59836147 4517.82 28.80 34.88 3740.78 3900.78 - 1252.45 1914.41 1589.29 - 1403.32 746.02 4.13 2498029.19 214791.77 N 60.82794920 W 151.59821724 4615.57 32.29 29.70 3824.97 3984.97 - 1206.49 1964.05 1565.18 - 1361.30 772.43 4.47 2498070.54 214819.20 N 60.82806412 W 151.59806922 4711.25 36.04 26.45 3904.13 4064.13 - 1155.41 2017.77 1537.05 - 1313.88 797.64 4.36 2498117.33 214845.56 N 60.82819383 W 151.59792797 4805.91 39.52 25.72 3978.93 4138.93 - 1099.70 2075.75 1506.54 - 1261.80 823.12 3.71 2498168.78 214872.31 N 60.82833629 W 151.5977851E 4900.39 43.22 24.75 4049.82 4209.82 - 1039.45 2138.18 1474.73 - 1205.32 849.72 3.97 2498224.59 214900.28 N 60.82849078 W 151.59763612 4995.48 46.72 24.37 4117.09 4277.09 - 974.42 2205.37 1442.03 - 1144.20 877.64 3.69 2498285.01 214929.68 N 60.82865796 W 151.5974796E 5090.78 49.97 24.04 4180.42 4340.42 - 905.40 2276.57 1409.66 - 1079.26 906.83 3.42 2498349.21 214960.44 N 60.82883558 W 151.59731611 5185.50 53.29 23.50 4239.21 4399.21 - 833.28 2350.82 1378.49 - 1011.31 936.75 3.53 2498416.42 214992.02 N 60.82902146 W 151.59714842 5280.29 56.77 23.80 4293.53 4453.53 - 757.81 2428.48 1349.36 - 940.17 967.91 3.68 2498486.78 215024.90 N 60.82921605 W 151.59697382 5375.22 59.40 23.60 4343.71 4503.71 - 679.53 2509.06 1323.33 - 866.39 1000.29 2.78 2498559.74 215059.08 N 60.82941785 W 151.59679234 5469.86 63.61 20.71 4388.86 4548.86 - 598.24 2592.21 1298.97 - 789.37 1031.61 5.19 2498635.97 215092.26 N 60.82962852 W 151.59861684 SurveyEditor Ver SP 2.1 Bld( users) leg Al slot 7\M- 101M- 10PB11M -10PB1 Generated 2/26/2010 11:51 AM Page 2 of 3 I - Measured Azimuth Vertical Along Note NS EW i L Comments Inclination Sub Sea 1VD TVD Closure True h True North DLS Northing Fasting Latitude Longitude Depth True Section Departure rue Nort ue o (ft ) (deg) (deg) I (ft) (ft ) 1 (ft) 1 (ft) (fl) I (ft) - (ft) , (degt100ft)1 (ftUS) I Easti (fUS) 5564.63 67.63 18.60 4427.97 4587.97 - 513.16 2678.51 1275.26 - 708.09 1060.61 4.70 2498716.51 215123.24 N 60.82985084 W 151.59645430 5658.94 71.02 16,28 4461.27 4621.27 - 425.69 2766.73 1253.36 - 623.93 1087.03 4.27 2498800.01 215151.71 N 60.83008106 W 151.59630622 5755.98 74.36 15.04 4490.14 4650.14 - 333.51 2859.36 1233.91 - 534.73 1112.02 3.65 2498888.57 215178.87 N 60.83032503 W 151.59616613 5851.52 79.49 12.89 4511.75 4671.75 - 240.70 2952.39 1218.41 - 444.45 1134.46 5.80 2498978.27 215203.50 N 60.83057198 W 151.59604035 5945.04 82.21 11.06 4526.62 4686.62 - 148.44 3044.71 1206.74 - 354.14 1153.61 3.49 2499068.09 215224.85 N 60.83081900 W 151.59593304 6039.83 81.14 8.52 4540.35 4700.35 -54.66 3138.50 1198.48 - 261.73 1169.55 2.88 2499160.08 215243.05 N 60.83107179 W 151.59584362 6134.49 78.80 8.22 4556.83 4716.83 38.51 3231.71 1195.21 - 169.51 1183.12 2.49 2499251.94 215258.87 N 60.83132403 W 151.59576754 6229.47 75.01 9.78 4578.35 4738.35 130.99 3324.20 1200.13 -78.16 1197.58 4.30 2499342.91 215275.56 N 60.83157391 W 151.59568647 6324.39 69.72 10.38 4607.10 4767.10 221.41 3414.63 1213.45 10.87 1213.40 5.61 2499431.53 215293.54 N 60.83181744 W 151.59559777 6419.01 65.70 10.98 4642.98 4802.98 308.94 3502.16 1233.43 96.89 1229.62 4.29 2499517.12 215311.86 N 60.83205272 W 151.59550686 ilk 6513.68 60.83 10.50 4685.55 4845.55 393.45 3586.69 1258.31 179.93 1245.38 5.16 2499599.75 215329.64 N 60.83227987 W 151.59541851 6608.41 56.09 10.95 4735.09 4895.09 474.16 3667.40 1286.77 259.23 1260.39 5.02 2499678.67 215346.58 N 60.83249679 W 151.59533434 6703.46 52.76 13.05 4790.39 4950.39 551.40 3744.69 1319.62 334.84 1276.43 3.94 2499753.86 215364.46 N 60.83270361 W 151.59524441 6798.16 49.10 14.98 4850.07 5010.07 624.73 3818.20 1356.44 406.17 1294.20 4.18 2499824.73 215383.97 N 60.83289870 W 151.59514479 _est Survey 6880.80 46.92 15.38 4905.35 5065.35 685.90 3879.62 1390.49 465.44 1310.28 2.66 2499883.59 215401.49 N 60.83306084 W 151.59505465 1D (Projected) 6940.00 46.92 15.38 4945.78 5105.78 728.95 3922.86 1415.70 507.13 1321.75 0.00 2499924.99 215413.97 N 60.83317488 W 151.59499036 Survey Error Model: SLB ISCWSA version 24 *** 2 -D 95.00% Confidence 2.4477 sigma Surveying Proa: MD From (ft I MD To (ft 1 EOU Frei; Survey Tool Type Borehole -> Survey 0.00 345.00 Act -Stns SLB_GYRO -MWD -Depth Only M -10PB1 -> M -10PB1 345.00 1369.70 Act -Stns SLB_GYRO -MWD M -10PB1 -> M -10PB1 1369.70 6880.80 Act -Stns SLB_MWD -STD^M M -10PB1 -> M -10PB1 6880.80 6940.00 Act -Stns SLB BLIND M -10P81 -> M -10P81 Legal Description: Northing (Y) fftUS1 Eastina (X) IftUS1 Surface : 4227 FSL 4816 FEL S33 T9N R13W SM 2499450.29 214080.25 BHL : 4734 FSL 3494 FEL S33 T9N R13W SM 2499924.99 215413.97 *Italicized stations are NOT used in position calculations. Final Definitive Survey Verify and Sign -off I have checked to the best of my ability that the following data is correct: Surface Coordinates and Reference Elevations Declination Information Survey Tool Codes SLB DE: Client Representative: Date: SurveyEditor Ver SP 2.1 Bld( users) leg Al slot 71M- 10 \M- 10PB1 \M -10PB1 Generated 2/26/2010 11:51 AM Page 3 of 3 iii r f • Chevron trio 1%0 m-10 Scblumherger Survey Report Report Date: February 8, 2010 Survey l DLS Computation Method: Minimum Curvature 1 Lubi nski 1 Client: Chevron Vertical Section Azimuth: 10.000° Field: Trading Bay Unit Vertical Section Origin: N 0.000 ft, E 0.000 ft Structure I Slot: Steelhead / leg Al slot 7 TVD Reference Datum: Rotary Table Well: M -10 TVD Reference Elevation: 160.0 ft relative to Mean Sea Level Borehole: M -10 Sea Bed / Ground Level Elevation: - 185.000 ft relative to Mean Sea Level UWVAPle: 507332058800 Magnetic Declination: 18.360° Survey Name /Date: M -10 / February 8, 2010 Total Field Strength: 55541.668 nT Tort /AHD t DDI / ERD ratio: 218.290° / 4695.99 ft 16.227 / 1.028 Magnetic Dip: 73.639° Grid Coordinate System: NA027 Alaska State Planes, Zone 04, US Feet Declination Date: January 25, 2010 Location LaUtong: N 60.83178787. W 151.60239696 Magnetic Declination Model: BGGM 2009 Location Grid N/E Y/X: N 2499450.290 ftUS, E 214080.250 ftUS North Reference: True North Grid Convergence Angle: - 1.39928826° Total Con Meg North -> True North: +18.360° Grid Scale Factor: 0.99999302 Local Coordinates Referenced To: Well Head Measured Azimuth Vertical Along Ho NS EW Comments Inclination Sub -Sea TVD TVD Closure DLS Northing Ea Latitude L Depth True Section Departure True North True North 9 I u� (ft ) (deg) (deg) (ft) (ft) (ft ) (ft ) (ft ) I (ft) J (ft) (deg/100ft) (ftUS) (ftUS) 11 3667.96 17.59 115.43 2954.48 3114.48 - 1388.95 1595.13 1565.26 - 1493.17 469.54 4.78 2497946.11 214513.18 N 60.82770345 W 151.59976629 3762.71 17.86 106.18 3044.75 3204.75 - 1394.33 1623.92 1583.21 - 1503.37 498.43 2.98 2497935.26 214539.81 N 60.82767555 W 151.59961564 3857.53 19.28 97.96 3134.65 3294.65 - 1395.34 1654.07 1598.57 - 1509.59 525.90 3.14 2497928.32 214569.13 N 60.82765853 W 151.59945051 3952.38 20.49 91.71 3223.85 3383.85 - 1392.38 1686.30 1611.92 - 1512.26 558.01 2.58 2497924.87 214601.16 N 60.82765124 W 151.59927063 Tie -In Survey 4043.19 21.63 85.04 3308.61 3468.61 - 1385.77 1718.90 1622.58 - 1511.28 590.57 2.92 2497925.05 214633.74 N 60.82765389 W 151.59908817 OH KOP - 4050'md 4093.61 22.28 85.77 3355.37 3515.37 - 1381.02 1737.75 1628.11 - 1509.77 609.36 1.40 2497926.10 214652.56 N 60.82765802 W 151.59898289 4142.46 21.80 85.56 3400.65 3560.65 - 1376.48 1756.08 1633.76 - 1508.39 627.64 1.00 2497927.04 214670.87 N 60.82766180 W 151.59888048 4189.22 21.86 85.85 3444.06 3604.06 - 1372.19 1773.47 1639.30 - 1507.09 644.98 0.26 2497927.92 214688.23 N 60.82766536 W 151.59878334 4283.96 23.92 81.26 3531.34 3691.34 - 1361.71 1810.30 1650.22 - 1502.89 681.56 2.88 2497931.22 214724.90 N 60.82767683 W 151.59857838 4316.36 24.18 77.45 3560.93 3720.93 - 1357.05 1823.50 1653.40 - 1500.45 694.53 4.86 2497933.34 214737.93 N 60.82768351 W 151.59850571 ill 4351.85 24.78 73.35 3593.23 3753.23 - 1350.93 1838.20 1656.07 - 1496.74 708.76 5.08 2497936.70 214752.24 N 60.82769365 W 151.59842603 4378.78 25.39 70.23 3617.62 3777.62 -1345.53 1849.62 1657.52 -1493.17 719.60 5.41 2497940.01 214763.16 N 60.82770342 W 151.59836529 4466.93 28.16 60.55 3696.35 3856.35 - 1322.91 1889.25 1658.61 - 1476.54 755.52 5.85 2497955.75 214799.48 N 60.82774890 W 151.59816403 4561.20 34.58 49.83 3776.86 3936.86 - 1288.17 1938.19 1652.34 - 1448.30 795.40 9.00 2497983.02 214840.04 N 60.82782616 W 151.59794055 . 4656.10 38.00 42.10 3853.38 4013.38 - 1242.71 1994.30 1638.33 - 1409.22 835.60 6.01 2498021.10 214881.18 N 60.82793305 W 151.59771532 4746.74 41.52 34.35 3923.09 4083.09 - 1191.65 2052.21 1618.25 - 1363.67 871.29 6.70 2498065.76 214917.97 N 60.82805763 W 151.59751534 4846.67 46.36 27.34 3995.07 4155.07 - 1126.89 2121.48 1588.31 - 1304.13 906.63 6.86 2498124.42 214954.75 N 60.82822047 W 151.59731733 4940.78 50.46 22.49 4057.55 4217.55 - 1058.90 2191.84 1553.95 - 1240.31 936.17 5.81 2498187.50 214985.85 N 60.82839506 W 151.59715178 5028.13 53.89 16.52 4111.14 4271.14 - 990.90 2260.80 1516.98 - 1175.30 959.11 6.67 2498251.93 215010.36 N 60.82857286 W 151.59702324 5137.70 57.65 14.79 4172.77 4332.77 - 900.77 2351.37 1466.71 - 1088.08 983.52 3.67 2498338.52 215036.90 N 60.82881143 W 151.59688643 5231.85 63.94 15.24 4218.68 4378.68 - 818.94 2433.51 1423.80 - 1008.75 1004.81 6.69 2498417.31 215060.12 N 60.82902843 W 151.59676711 5327.23 70.37 14.10 4255.69 4415.69 - 731.38 2521.36 1381.35 - 923.76 1027.04 6.83 2498501.73 215084.41 N 60.82926091 W 151.59664252 SurveyEditor Ver SP 2.1 Bid( users) leg Al slot 7\M- 10 \M- 10 \M -10 Generated 2/26/2010 11:52 AM Page 1 of 3 Comments Measured Inclination Aamuth Sub Sea TVD N 9 n9 D Vertical Al Hole Closure NS DLS Northing fasting Latitude L dude Depth True Section Departure True North True North (ft) (deq) (deg) (ft) (ft) (ft) I (ft ) (ft) I (ft) (ft) I,degl100ft)I (ftUS) I (MIS) l I 5419.79 74.30 12.13 4283.78 4443.78 - 643.34 2609.54 1341.01 - 837.88 1047.03 4.71 2498587.10 215106.49 N 60.82949581 W 151.59653047 5515.35 75.01 12.59 4309.07 4469.07 - 551.27 2701.69 1302.79 - 747.87 1066.75 0.88 2498676.60 215128.41 N 60.82974204 W 151.59641990 5606.85 74.98 12.00 4332.76 4492.76 - 462.96 2790.07 1271.25 - 661.51 1085.57 0.62 2498762.47 215149.34 N 60.82997824 W 151.59631440 5626.07 74.86 11.76 4337.76 4497.76 - 444.41 2808.63 1265.18 - 643.35 1089.39 1.36 2498780.53 215153.60 N 60.83002792 W 151.59629299 5641.21 74.51 11.01 4341,76 4501.76 - 429.81 2823.23 1260.46 - 629.04 1092.28 5.31 2498794.77 215156.83 N 60.83006707 W 151.59627683 5681.48 74.86 11.08 4352.39 4512.39 - 390.98 2862.07 1248.42 - 590.92 1099.72 0.89 2498832.70 215165.20 N 60.83017134 W 151.59623512 5712.90 75.81 9.99 4360.35 4520.35 - 360.58 2892.47 1239.51 - 561.04 1105.27 4.52 2498862.44 215171.48 N 60.83025308 W 151.59620396 5737.83 77.28 9.25 4366.15 4526.15 - 336.34 2916.72 1232.52 - 537.13 1109.32 6.57 2498886.23 215176.12 N 60.83031847 W 151.59618125 7" Csg 5789.00 78.67 9.63 4376.81. 4536.81 - 286.30 2966.76 1219.34 - 487.76 1117.53 2.81 2498935.39 215185.53 N 60.83045351 W 151.59613524 • 5803.36 79.06 9.73 4379.58 4539.58 - 272.21 2980.85 1216.03 - 473.87 1119.90 2.81 2498949.21 215188.23 N 60.83049150 W 151.59612196 5898.80 83.95 7.68 4393.68 4553.68 -177.87 3075.22 1196.33 -380.60 1134.17 5.55 2499042.11 215204.78 N 60.83074664 W 151.59604195 5994.64 88.22 6.77 4400.22 4560.22 -82.39 3170.81 1181.28 - 285.77 1146.19 4.55 2499136.62 215219.11 N 60.83100604 W 151.59597455 6088.56 89.35 4.29 4402.21 4562.21 11.21 3264.71 1171.14 - 192.31 1155.24 2.90 2499229.83 215230.44 N 60.83126167 W 151.59592380 6183.94 91.13 1.63 4401.81 4561.81 105.86 3360.08 1164.22 -97.07 1160.16 3.36 2499324.92 215237.69 N 60.83152218 W 151.59589615 6278.36 90.14 0.75 4400.76 4560.76 199.16 3454.50 1162.13 -2.68 1162.12 1.40 2499419.23 215241.95 N 60.83178038 W 151.59588511 6373.79 89.97 0.81 4400.67 4560.67 293.36 3549.93 1167.11 92.74 1163.42 0.19 2499514.59 215245.58 N 60.83204139 W 151.59587778 6469.57 88.97 0.33 4401.56 4561.56 387.84 3645.70 1179.54 188.51 1164.38 1.16 2499610.31 215248.87 N 60.83230336 W 151.59587239 6564.80 88.52 359.76 4403.64 4563.64 481.61 3740.91 1198.52 283.72 1164.45 0.76 2499705.48 215251.27 N 60.83256379 W 151.59587192 6660.43 88.83 359.67 4405.86 4565.86 575.68 3836.51 1224.22 379.32 1163.98 0.34 2499801.07 215253.13 N 60.83282530 W 151.59587453 6754.96 90.45 0.01 4406.45 4566.45 668.72 3931.04 1256.48 473.84 1163.71 1.75 2499895.57 215255.17 N 60.83308386 W 151.59587596 6850.90 90.82 1.49 4405.39 4565.39 763.41 4026.97 1296.84 569.77 1164.97 1.59 2499991.43 215258.77 N 60.83334625 W 151.59586887 6946.21 90.72 1.32 4404.11 4564.11 857.64 4122.27 1343.46 665.04 1167.30 0.21 2500086.62 215263.43 N 60.83360685 W 151.59585572 7042.11 91.89 2.71 4401.92 4561.92 952.58 4218.14 1396.20 760.85 1170.67 1.89 2500182.32 215269.14 N 60.83386893 W 151.59583678 7137.44 91.78 2.67 4398.87 4558.87 1047.08 4313.43 1453.87 856.03 1175.15 0.12 2500277.36 215275.94 N 60.83412927 W 151.59581166 7232.97 91.17 3.69 4396.41 4556.41 1141.91 4408.92 1516.10 951.38 1180.44 1.24 2500372.55 215283.56 N 60.83439009 W 151.59578192 7328.37 90.65 3.56 4394.89 4554.89 1236.70 4504.31 1582.10 1046,57 1186.47 0.56 2500467.57 215291.92 N 60.83465049 W 151.59574807 7424.76 89.31 3.35 4394.93 4554.93 1332.46 4600.70 1651.51 1142.79 1192.28 1.41 2500563.61 215300.07 N 60.83491367 W 151.59571547 Last Survey 7484.09 89.49 2.99 4395.55 4555.55 1391.37 4660.03 1695.36 1202.02 1195.56 0.68 2500622.75 215304.80 N 60.83507570 W 151.59569705 •D (Projected) 7520.00 89.49 2.99 4395.87 4555.87 1427.01 4695.93 1722.27 1237.88 1197.44 0.00 2500658.55 215307.55 N 60.83517379 W 151.59568653 Surveying Prou: MD From (ft 1 MD To ( ft 1 EOU Freq Survey Tool Type Borehole -> Survey 0.00 345.00 Act-Stns SLB_GYRO -MWD -Depth Only M -10PB1 -> M -10PB1 345.00 1369.70 Act -Stns SLB_GYRO -MWD M -10PB1 -> M -10PB1 1369.70 4043.19 Act -Stns SLB_MWD- STDAA1 M -10PB1 -> M -10PB1 4043.19 5737.83 Act -Stns SLB_MWD-STDAA1 M -10 -> M -10 5737.83 7484.09 Act -Stns SLB_MWD-STDAA2 M -10 -> M -10 7484.09 7520.00 Act -Stns SLB_BLIND M -10 -> M -10 Legal Description: Northing Al (ftUS1 Eastlnu (X) lftUS1 Surface : 4227 FSL 4816 FEL S33 T9N R13W SM 2499450.29 214080.25 BHL : 185 FSL 3617 FEL S28 T9N R13W SM 2500658.56 215307.75 SurveyEditor Ver SP 2.1 Bid( users) leg Al slot 7\M- 10 \M- 10 \M -10 Generated 2/26/2010 11:52 AM Page 2 of 3 • Comments I Measured Inclination Azimuth Sub -Sea TVD TVD Vertical Along Hole Closure NS Dl5 Nattri Eestin latftude ! Depth True Section Departure True North True North g Longitude (ft) I (deg) I (deg) (ft) (ft) (ft) (ft) I (ft) (ft) (ft) _ (degh00 ft ) 1 (iUS) I (iUS) _ "italicized stations are NOT used in position calculations. Final Definitive Survey Verify and Sign -off I have checked to the best of my ability that the following data is correct: Surface Coordinates and Reference Elevations Declination Information Survey Tool Codes SLB DE: Client Representative: Date: • SurveyEditor Ver SP 2.1 Bld( users) leg Al slot 7\M- 10 \M- 10\M -10 Generated 2/26/2010 11:52 AM Page 3 of 3 Schlumberger Section 6 Directional Plots M -10PB1 and M -10 • Lnevron • y Schlumberger -tu M -10 Plan vs Actual r10 Trading Bay Unit I $' Steelhead • OarmMes &Awe Low* 47027 Mask, Rae FAms Zero US NM "MI IICCJA 2009 Op 73 LW h :: 2,752S .3110 1K MOO 54.430 7091wg 249916020700 0010 - 130921717' 0et -9M11 a52 n11 . H!•79 fate n00 00 Sam Ata7 Om. •17350 9S 'OW al 40'11' 45I534444 .21 tuln0 212 1n41*0WM010 Pim'. 5.10 SAry Dale .W..9fl 3310 -1200 -600 0 600 1200 0 0 W Conductor 600 600 1200 - 1200 13 Csg 1800 . - -. . -___.._ ... ................... • 1800 0 0 m 2400 -- 2400 co to 0 1 H 3000 3000 3600 3600 \11111111111111111 4200 4200 C M•10IP20)023.nd M•10 4800 4800 A410PB1 (P12) D9 • : ' ;••• 10P01 -1200 -600 0 600 1200 • uievran • Schlumberger FTI.; I FIELD STRUCTLIRE M -10 Plan vs Actual Trading Bay Unit Steelhead UM. aa...., Suez - L.. :a.m YM,77..4a31.1* t- r. 1.- Mxl�ar+nn 14,111 WAY 2009 Dp n81Y Oa: Lawry 6. 2010 1601551 2/004 KM GM Cane Ammar I Slat 1'S 811117 ,WWI Rog, Ta 11M 00R a.. al tau L./ Sb9 1Jea •1505C f3 551N1741 Lap *151 .K5520 F..4,, ]11]5019 Mb S44 IC 0999■11E24S M M10 Srvy Datl. January 6,X110 -1200 -600 0 600 1200 0• ........._ ...........:..........._............... ....._,_..__......,............ 0 3ri• Conductor �• 600 600 1200 1200 d 1341S cq 1800 r 1800 0 0 Co 2400 c. 0 2400 m U U, 3000 3000 3600 3600 4200 4200 r cal 11 02 Sand M-10 4800 4800 M.10P81 (P12) D3 pilot M -10PB1 -1200 -600 0 600 1200 • Chevron • • Scmurnherger r M - 1 0 Plan vs Actual FIELD Trading Bay Unit I gT Steelhead S,,.y,. I•, NAM au.l, SU . PW,... Zan. 04. 118 Fool 400.01,,..,4 arr., mos Dip 73430 0.k 3. 2010 1.1: 14111149 54490 44.-.ta, 2494.0 as 0115 OWC -T 442:0020' I Blot 6, 4 Al 4.7 TV0 No40*1.44 {IW WO ..,- al,:a, 46 L.,. 14.01:44c •16 360• FS: 56641.7.4 104 'WIS1368624 Bw 2 20 , 11.41 S00406.210.41040,5245 0040 1,110 Sr., Mn F•,,.O 25.204 -400 0 400 800 1200 1600 N Ma, 1200 1200 ill lif M•16 (P20) 02 Sand 800 800 M.10PB1 400 M -10P81 (P12) CO plot 400 A A A Z O 0 0 _ 30- Conductor _. ... ..__ ... ............ p II a. c ct 13-3/8" Cog CO CO 440 ' -400 v r Csp -800 ......... _.. -800 -1200 •.•...:,• _..,, \ -1200 -1600 -1600 -400 0 400 800 1200 1600 <<< W Scale = 1(in):400(ft) E >» SchlornDerger Section 7 Time vs Depth Curve M -10P61 and M•10 Time vs. Depth M -10 SteelHead Time 1,2 2'20 2010 1/110 1/22/2010 2/1/2010 2/11/2010 2/21201a ` Pole Depth 0 __ -- 1 1 1 -- 1 1 Planed Time S,rs - Depth u nkn+ya..n Stationary Rotate Pump • Rotate. Pump 1000 - Pull rya • Pun up. Pump Eack Ream Run Ir Run In Rotate 2000 Run In. Purttp - Ream In Slip 1 *\\I . Slide Drill • Rotary Drill 3000 m POOH to change BHA. Low PR and High Torque 1 It 4000 . - - • + POOH insuffrcrent IDLE, , 5000 PO OH Low PR TD 6000 al 7000 V POOH for plug back cement Operator, 0000 it • • . Schlumberger Section 8 KPIs M -10PB1 and M -10 I= D el ROP (ft/Circ hr) m DLS (deg /100') D 0 .-+ N.7 N w w a a V1 ' C CD C) 0 VI O . V1 0 lh 0 lr 0 V1 0 3 O r+ NJ w a U 01 V CO p O � - - __- T p Well M-10,BHA #2, 1 1/2 " ... r � i + (c Well M- 10,BHA #5, 9 1/4" Xceed Z < 3 I Well M- 10,BHA #6, 9 1/4" Xceed G a 0 OD CI Well M- 10,BHA #10, 9 1/4" Xceed N Q 0 - - -- C c I.+ Well M- 10,BHA #11, 9 1/4 "... V1 v - - -- co ' ' • N Well M- 10,BHA #12, 9 1/4" Xceed - -i- I F - � _ TI Well M- 10,BHA #12, 9 1/4 Xceed 0 D 0 m Ai Well M- 10,BHA #17, 6 1/8" PD X5 0 ID 1 111111 H 111 111 M 1 1 G G CDD ROP (ft/Hr) F , 1, , r - C7 0 O N a 0 CO 0 N G ip r 0 0 0 0 0 0 0 m 3 �— � _ — "_ Well M- 10,BHA #2, 17 1/2" ' r 0 Motor 3:4 BH1.5 r - Well M- 10,BHA #5, 9 1/4" Xceed O Well M- 10,BHA #6, 9 1/4" • d m P3 Xceed r < CA i co y • Well M- 10,BHA #10, 9 1/4" E o -- X Xceed . m — Well M- 10,BHA #11, 9 1/4" i N N 0 Motor 7:8 BH1.5 0 Well M- 10,BHA #12, 9 1/4" 74 N CI N Xceed Q o o Well M- 10,BHA #12, 9 1/4" 0 0 • Xceed VI ri t Well M- 10,BHA #17, 6 1/8" PD , 0 i I 1 X5 - • Schlumberger Section 9 MWD Depth Control Reports M -10PB1 and M -10 • 1 0 • LWD001 End of Run Depth Control Report Schlumberger [ ,„„„inq cat.,nerr n iTsc lArt'rIs!aMar:'` rwon' Oa' 1ar?,..: Job Information Date 8- Jan•`1 Rig ■ rtabcr <s 5' Hole Size 17 ;r u, Job no. IDAKA01 ;7 AFE JWDAK D0001 DRL Permanent Depth Datum Reference MSL Well Number M.10 API 50. 73340588.00 Well Reference Point F,nary Table Field Trading Bay Unit Lead Eng A Schciyatleva Depth Reference .:r.Ihr's Pipe Tally Run TD I W0001 2nd Eno S FOI! Depth Reference Plan 33 ft Acquisition System Exemptions Depth System IDEAL 30E3" Vo Horn To I>r L'eplh System Copt! i...ler Hookload Sensor 1 4 0 ( . 16 7Wo.^'r.' 3C-Mar-10 16- Mar -1 3. . . . . . . . . . . . .0 0=5cee•bmecfyrheTaaalmenx Type In Line Shaft ;tamp Lire HSPV Sw r:al N:unber 5659 0604349 14 lc 03 Zones of Interest As per Geologist Advice) Sensor Offsets from the aNA F ram {MO) To MO) Description To: MF:r: To Moan L .. - - ... .. 3 J 0 nowerrP.aw D& ft n ARC DR .... n f1 ARC Res - ft fl Calibrations Used for this Run Depth Encoder Calibration Date r Jar Pt Hcckload Sensrr Calihrat on Dare / r.. er - .� �,. • rsax .., ... ;.. N.._ , ewr r ewer _. J .. .. H I I s i ipoolme e > 7 aTo :ee { Calibration Type Manual I Callibrahran Reference 1 Urllers Conscle Post Run Information flew Depth txt Fie Corrections Depth Bin DB File Corrections Depth Interval Comments Depth Interval I Comments ■ Plot of Time versus Depth for Run Depth ft 4000- 000.11- 800.0 - ill 11300.0 - 1200.0 - 1400 O- ,.. r Zoom 1 r 1 4 t J00 30000 40000 Fr - C , _.00 70000 R0000 917000 100000 1100q 1 Tua.eec : Time SlamplFra Coksm) VS Depth :D tim€likiclrnkanntVSC*>- +..'t. Tool Dump File Time Shifts Tool Time shi5z Comments . r • • 3 LWD002 End of Run Depth Control Report Schlumberger 1 .%- ro' Ing Droner, "AV S3 S016 DIM Dante Canna Star, - raven., ■ 1 r Pr .ar,1s1.e Job Informetic' Date 1' ,1 r, Rig , :�:,rs hl Hole Size 925 "1 Job no. 101-<AC;l AFE UWDAK D0001 DRL Permanent Depth Datum Reference MSL Well Number M -10 API 50 -733- 20588 -00 Well Reference Point Rotary Table Feld Trading Bay Una Lead Eng A Schulyatieva Depth Reference Driller's Pipe Tally Run TD L W0007 2nd Eng S. Fell Depth Reference Plan 30h Acquisition System Exemptions Depth System IDEA DUOS' '4a From to Depth System Depth En:odel Hcokload Sensor 14_0c_16 1 W 9 0ID 6 2 0 0 5 7 3e Mar t-0 30- Mar -10 Mace 6noe N5t1, an want c er:ne ram /al walla Type aline Shah C' amp Late HSPM Sena: he ni;:. 5659 I 0604369 14 lc 03 Zones of Interest ( As per Geologist Advice) Sensor Offsets from the BHA From (MD) To(MO) Description n /Awe, It .t.., Ton e;. Olsten. D D _.._ _._. D2 Sara PowarWW 091 0 "_...._ it U3 Sine ,ARC C Il n ARC Rc:: 0 ft Calibrations Used for this Run Depth Encoder Calibration Date /-Jan-IC Hooitload Sensor Calibration Dale 7 - Jan - 10 r are , . .,.r . • ....r )♦- - --. ...are. r a - .r.. ... n...e. .�.. -... . '' . , , .a I I I • a.d. e a 1 Caaibration Type ' Manual ' Calibration Reference 'Drillers Console' Post Run Information Raw Depth txt File Corrections Depth 8in D8 File Corrections Depth Interval — Comments Depth Interval - Comments Plot of Time versus Depth for Run Depth h 900.0 - 1 y 18000- 27000- 11 %000- a 45000- 5500 0 - Zoom 50000 100000 150000 200000 260000 300000 ____ 1 Time..eee -Time Sterner eat Colum) VS Depth -Date TinelThirtColumnIVS Dea31h II I Tool Dump File Time Shifts Tool Time shift Comments • 9 • • LWD003 End of Run Depth Control Report Schlumberger r e,.nol. rq Locameit ahM - StI6 ChM lie int Lionni tits leant Yrs::n t eat Jar 7rt Job Information Date i Ie .: dr r, Rig ■ Hole Size I Job no. 1DAKA0100 AFE UWDAK 00001 DRL Permanent Depth Datum Reference MSL Well Number M -10 API 50 733 20588 -90 Well Reference Point Rotary Table Field I "radli Bay J■t ___ Loan Eng__ A S it.l - ;a1 Depth Reference .. s P■pe Tclly Run TD LWO1303 2nd End _ S Fell Depth Reference Plan 300 Acquisition System Exemptions Depth System IDFA: F - do mm. 10 Descepl•.,- c Depth System Depth Enr:h -- 1 4l Sensor 14 3o 16:: '.i2L9l 3G Mar 10 3C Mar i0 9ue ilk fga!r nvda be pa .71 bytearasnasinrtrald type In Line Shaft Clamp lme _ HSPM Scr:. Number 5659 950039 141c 03 Zones of Interest ( As per Geologist Advice) Sensor Offsets from the BHA From IMO) To (MD) Description Meas. - ■tance 0 0 DZ sane - ._ -- "uwer PJlse D0 't 0 D3Sanc 000 CR 4 ft ARC Res _ _ R Calibrations Used for this Run Depth Encoder Calibration Date F -Jar-10 I$ookload Sensor Calibration Oak, 7Jan 10 .y... .... ., — fr.......r...r.y. -- a,a.w.m t rose- �...., ammo arts, +vr. i -- ( rwN i 0,... r_AhS ... iaItt ..... , emu. raw, r iv — v ".raa. 1�-� I 1 es -1. i oil . 1—...., IT . i ro Me .Wn rr w. c. -.. Cal)itration Type I Manual I Callibcation Reference D d - rs Cc: eoleI Post Run Information Raw Depth txt File Corrections Depth Bin D8 File Corrections Depth Interval Comments Dopta Interval Comments Plot of Time versus Depth for Run Depth fl 1000.0 - 2000 D- 30000- 4000 / 5000.0 - f 1 6000.0- f r Zoan IOf1( o 1 ^Minn 140000 1f,YYMO 1R0000 200000 - - -.. Time sec : Tine Stanp(Frst Cdrrrn)VS Depth T,r- T.r<LTMdl'n0o lVS Depth Tool Dump File Time Shifts Tool Tvie shit Comments • • • LWD005 End of Run Depth Control Report Schlumberger • I1:.rtr7 log DCrtlrrent IIAMS 05116 DAM Uo et Conn! SW.dart Jerson'. 0 »Le -once Job Information Date J.n RI Nabors 5' - Hole Size 9251i Job no. IGAKA0103 AFE UWDAK MC' DFc, Permanent Depth Datum Reference MSL Well Number Min API 50733.20588 -0 Well Reference Point Rotary Table Field Trading Bay Jnn Lead Eng A. Schulyatieva Depth Reference _ Diner's Pipe Taily Run TO LWD005 2nd Enq S Fell Depth Reference Plan 30 ft Acquisition System Exemptions Depth System IDEAL 31E0' No host Vosrrµ:^,. Depth Systee Depth Enccler Hookload Sensor 4 7. le 307 ^7.3r70051 32 0er '7 33-Ma• -1C 0Iala Fep0t Cohbrate, will be ceearrrec by the mare. al method Type In Line Shaft Ciamp Inc • HSPM SenatNumber 51.h0 06063:9 _ 14 lc 03 Zones of Interest ( As per Geologist Advice) Sensor Offsets from the BHA From (MD) To (PAD) Description Tu-t Mean to Meas. 0 0 D2 Sand PowerPuse 081 1 - - ft -- D3 Sand ARC Drt rl ft ARC Res fl _ ft Calibrations Used for this Run Depth rncorier Calibration Date 7.Jar -10 Hrrokload Sensor Calbration Dale 7.Jan. 10 . vraa... .... ,......... .. eel. e e Kee, :: ti eae• v aF:r b tie ----�._____ i (S A woo o aw ai .i. n r Callibration Type I Manual Callibration Reference j Drillers ConsdeI Post Run Information Raw Depth txt File Corrections Depth Bin D8 File Corrections Depth Interval Comments Depth Interval 1 Comments Plot of Time versus Depth for Run Depth tt 700 0- 1 '14010 - 21000- 2900.0 - 3500.0 - 4000- , r Zoom 1 36000 45000 54000 i C=oo :2000 91000 1 T ime.tec •Tine Sl lefFk lm sl Coln)VS Dept Date T Td Third Cokamnl VS Depth Tool Dump File Time Shifts Tool Tim_ Si Comments • • • • LWD006 End of Run Depth Control Report Sehlumberger is :r',,,, 77ro r pnt MFR Fn1y0AM Coral.ntc S Y nttvdVas on lA 3C... n.Nb1 Job information Date ..a.:= I Rig `la ors r ' Hole Size :'!t Joh no. 10AKA0100 AFE L'WDAt DC001 DRL _ Permanent Depth Datum Reference _ MSL _ Well Number M -10 API 50 733 2C586 01 Well Reference Point Rotary Table Field Trading Bay Unit Lead Eng A Schulyatieva Depth Reference Onller's Pipe Tally Run TO 1 LWUO35 2nd Eng S , r, ! ' '. Depth Reference Plan 30 ft Acguisif1on System Exemptions Depth System IDEAL Lasl r.: 1 , DernSestern Depth Encoder Hookioed Sensor 14_Oc_16 mammas/ 70as/ 30 Mar.'l : Mar - :r Block !eight Cekbramnwn a -• - a'a uv!nr na,uainrrroe Type 'n Line Shah Clamp lme HSPM - Senc hunger 5659 0804349 14 'c 03 _ Zones of Interest ( As per Geologist Advice) Sensor Offsets From (MU) to(MO) Description Tool Mean Oo4anQ 0 T7 Sand PoweK'u'.se OBI rt _.._ :1 Sand ARC GR , _..._ fl t ARC Res n t Calibrations Used for this Run Da lb Encoder Calibration Dale 7 ram ? Hook10ad Sensor Caabration Pale 7 .a 1C .. ..._. .._. «.... ,...,.. . ». ,..... ...s..4 Moo.. le..... , h...... 4...04 ...cn � eM.rj Aft . - . . ... : NOW rani' .non.. '---- i - rs - v _ e t r q°__" t-'- . � v.!.+r. ir .__ . '. ___ _.._�._ ■ _. J Cailibration Type I Manual I Callibration Reference I Dntlers Consoml Post Run Information Raw Depth txt f=ile Corrections Depth Bin 06 File Corrections Depth Interval Comments Depth Interval Comments • Plot of Time versus Depth for Run Depth ft I/ 9000- t 1600.0- / 24000- \ i 3200. - 4000 0- 41900 0 - Alii. I r Zoom 000 40 60 00000 100000 120000 140000 Tine-see -see .— . —_.1t� Stamp(Fust CoAnn) VS Depth -_ 1 ,._ L01801inL4111.1l1V$ Deodk Tool Dump File Time Shifts _ Tool I T shit Comments • LWD007 End of Run Depth Control Report Schlumberger e I _o;t 03 Don, t rt aV5 0 6016 0111D.ptn Z ootrn. Stans.0 v.nun 173D Jar 7004 Job Information Date .■ .. ;.•i 'Rig Nabors 51 Hole Size c 25 1 Job no. 1OAKAO100 AFE UWDAK 00001 DRL Permanent Depth Datum Reference MSL Well Number M•10 API SO-733- 20588.00 Well Reference Point Rotary Table Field Trading Bay Unit Lead Ens A. Schulyabeva — Depth Reference _ _ Onller s =:)::: Tally Run 70 LWD007 2nd Eng S. Fel' Depth Reference Plan 301t Acquisition System Exemptions Depth System IDEAL ..,,. ,n - r - To Depth System Death Encoder Hookload Seneor 140E_16 2009020620057 X Mar 10 30.M11r ''0 94,abnght Calibnmr we be M drmlr1 oY m. mn.aaimm.M Type In Lsne Shalt Clamp tine HSPM Semi Number 5659 - -._ 08C4242 - 14 Ic 03 Zones of Interest 1 As per Geologist AdviceI _ Sensor Offsets from the BHA From IMO) To 040) Description Toe Meas. I.) O:u r, roof Mess 0 0 1)2 Sand :•owvr+vna D4I ft N_ 03 Sand r,Rr: GR It + ARC Res e . Calibrations Used for this Run Depth Encoder Calibration :Date 7 - ia1 - '1 J Hookloac Sr.-r:rr Calibration Data 7 .n1 Wm ai 1 ww. .. ...... -�.. c.w —__ ...a ; .0,11... : w •.e. - _eo . r.77 ea..eaw T. _ �._ o-. wrww 1 ...., . �— . is .w OINIMMIMPUITIIPTIK MMIM 3 J . Callibration Type Manual Callibration Reference 1 Drilers Canso'el Post Run Information 9, Raw Depth txt File Corrections Depth Bin 08 File Corrections Depth Interval Comments Depth Interval Comments 1 Plot of Time versus Depth for Run Depth.h 900 0 18000 27000 3600.0 45nn n , 54000 Zoom 1 ) r - i r I Ti90000 100000 110000 120000 130000 140000 150000 160000 170000 1800(.∎ • ee.sec :Tine 5tamp(Fret Column) VS Depth Date T ne Thid Cohn) VS Death _ • Tool Dump File Time Shifts Tool Time shift Comments i • • • LWD008 End of Run Depth Control Report Schiumberger C on1_II Jpru'r e'I: DA:17 S31811hM Deem;:uveul Branca Td Ve non l C20+er Ala Job fo'm tiara Date - 27 --an 1 T Rig %“. ' I Hole Size 5251'1 ---- „lob no. no. IOAKA0100 AFE UWOAK DG301 ORL Permanent Depth Datum Reference MSL Well Number M -10 API 50733.20558 - 00 ell Reference Point Rotary Table Field Trading Bay Unit Lead Eng A Sc 1 ;. evz Depth Reference Driller's Pipe Tally Run TD 1W0008 2nd Enq S Far Depth Reference Plan 30tt Acquisition System Exemptions Depth System IDEAL OJEsr •om TO UescrNlon Depth System Depth Encodor •cokicad Sensor 14 Jc 16 0.1907Pe2fl;r 33 MY 1C 3C Mar 13 Bock neilr. Calebrann well be pee'-.- -- ty verse. ial ne39n Type '1 Loa Shaft Cam;, 10 RSP'd Saha. homer 5659 -- - -- _ 0504349 I ., I. 003 _ • Zones of Interest ( As per Geologist Advice) Sensor Offsets from the BHA From (MD) To (MO) Description Tao Was L1sance Toni Meat. 0 0 L12 Sane o 1'wnrn.Ino U8 n 1 It • C GR !t 5 RC Res n Calibrations Used for this Run Depth Encoder Calibration Dare 1- Jar -v■ J Hookioad Se -snr Calir hon oats 1 Jam TO MIIIIIIIIIOIMIIMMMIIIIIIIIIIIIIIIIIMIMIIS » > «. 0000,. r.aw„ �,.. 0000.. „,« •0000+;0.0.000 w. ....r.. *000 .0..400 ; 0woa • , ,e , VS • .a . •0,, ,., OW. a00as 00 0000.. .... •cos. ne•0e t'�F'rinTi _ 0000. .... 0.r r'B I 0 . a.waar. l . , e ewseerr•0 war 0000, Fr', w is r{ i r (7 r iifi' .. . ,•0 • r - .. rw. l . 0 .. Ts r r -- 1 • � 00_00 0000. ,. a 0000 _ 1” lD _00_00. Cahibration Type ( Manual Callibration Reference Drillers Coeso Post Run Information Raw Depth txt File Corrections Depth Bin 08 File Corrections Depth Interval Comments Depth Interval Comments Plot of Time ver ' nth. fpr rite, Depth ft 9f10n- , 1 Rtlo n- 2700 0 - 3600.0 4500.0 �- \'‘\ � i t 5400 - 1 000 1 j 60000 70000 80000 90000 100000 110000 120000 130 - 1 Trw T ele Strsnp)Fkst Column) VS Depth _ .D- e To-T.. .... ne 1 a; 0.4 Tool Dump File Time Shifts Tool Tern sh ft Comments _ _._ 0000.... • • • LWD009 End of Run Depth Control Report Schiumberger 1 ,.. ,..0 linp 2,:41 n8M- cc-Sne:eVCapt Corral sa.nm,e ...quo 10 n III 7044 Job Information Date -'! !Rig _ Nabors 5 Hole Site 6.2 n. Job no. 10AKA0100 AFE JWDAK DOOC'. ORL Permanent Depth Datum Reference MSL Well Number M -10 API °■•133.20508 00 Well Reference Point Rotary Table Field Trading Bay Unit Lead Eng Schuiyatieva Depth Reference Drillor's Pipe Tay Run TD _ LW0009 2nd Eng I S. Fell Depth Reference Plan 37, ft Acquisition System Exemptions Depth System IDEAL :ILL, 'la From to Depth System Depth Encoder Hookload Sensor 'c Or IF 21100021620"57 X Var -t0 30- Var-•1 0 -1-0.,r NAMC..,raenr nc nen:,nedbr the Tan. Tirtl e Type In tine Shaft Clamp Line NSPM Serial Nu?ib•, 5559 1 0E0:;; =9 14_IC_63 Zones of interest ( As per Geologist AdViee) Sensor Offsets from the BHA From (MD) ' To (S10) Description ■ ou M.... ..... 0 0 0 PcwrPaaee oat `.t n ARC OR n n ARC Res t _ n Calibrations Used for this Run Depth Encoder Calibration Date i- San -tn I lcek'roe Sensor Calibration Date 7 Jan a IMEINIMINSMI 0.e.. ear - . • e.. r. IN S e nut we -- I_0..... ..a _ ... fi ,.._ ..�. .. «.... IMw i 1 .1 rr 1 �J_Sr . 0.k=..- .. , .. Calibration Type Manual 1 1 Callibration Reference Drillers Console Post Run Information Raw Depth txt File Corrections Depth Bin DB File Corrections Depth Interval L Comments Depth Interval Comments Plot of Time versus Depth for Run Depth 10000 I r ... -_ I 2000,0 1 E L L "t 60000 .---"‘"1/41/4,,,,,...i 1 1 7000 0 r- Zoom i I i r 1 ' _..... - -- 4000 80000 120000 160003 2110000 240000 280000 Time sec ?inn Sr f'nkunnl VS Depth .._ ._—] ;:.a .e Trr. -IThad C4kmnlVS Depth Tool Dum. File Time Shifts Tool Time shift Comments 'Chevron Union Oil Company of California M -10 TRADING BAY UNIT Section 33 - T9N - R13W, SM Cook Inlet, Alaska • January 8, 2010 to February 5, 2010 FINAL WELL REPORT Lees F. Browne Jr. — Sr. Logging Geologist Tollef Winslow — Logging Geologist lb CAMP Chevron I WO TRADING BAY UNIT M -10 • TABLE OF CONTENTS 1 MUDLOGGING EQUIPMENT AND CREW 3 1.1. EQUIPMENT SUMMARY 3 1.2. PERSONNEL 3 2. GENERAL WELL DETAILS 4 2.1. OBJECTIVES 4 2.2. WELL RESUME 4 2.3. HOLE DATA 4 3. GEOLOGICAL DATA 5 3.1. WELL LITHOLOGY ORIGINAL PLUG BACK 5 3.2. WELL LITHOLOGY LATERAL 14 3.3. FORMATION /ZONE MARKER TOPS 20 3.4. ZONE SUMMARIES 25 3.5. SAMPLING PRIOGRAM AND SAMPLE DISPATCH 58 4. DRILLING DATA 59 4.1. DAILY ACTIVITY SUMMARY 59 • 4.2. SURVEY DATA 63 4.3. MUD RECORD 70 5. DAILY REPORTS 73 Enclosures 2 "/100' Formation Log (MD/TVD) 2 "/100' Drilling Dynamics Log (MD/TVD) 2 "/100' LWD Combo Lithology Log (MD/TVD) 2 "/100' Gas Ratio Log (M D/TVD) 2 • CANRIG • 1 MUDLOGGING EQUIPMENT AND CREW 1.1. EQUIPMENT SUMMARY Parameter Equipment Type And Position Total Comments Downtime Electric Driven QGM Gas Trap Ditch Gas Mounted In Possum Belly; FID Total 30 MINS REPLACE FAULTY Hydrocarbon Analyzer And MOTOR Chromatograph Rate of Penetration (ROP) Primary Drawworks Belt Driven 0 Encoder On Drum Shaft (Canrig) Pump stroke counter Externally Mounted Magnetic 0 Proximity Sensor (Canrig) Hookload/Weight on bit (WOB) Hydraulic Pressure Transducer 0 (Canrig) Drill string torque Varco Analog Feed 0 Top drive rotary (RPM) Varco Analog Feed 0 Standpipe Pressure Solid State Pressure Transducer 0 Casing Pressure Solid State Pressure Transducer 0 Mud flow in /out (MFI /MFO) MFI Derived From SPM /MFO From 0 Flow Paddle (Canrig) Pit volumes Radar Pit Probes 0 Explosion Proof Touch Screen 0 Driller's work station (Canrig) Company man's work station Rigwatch (Canrig) 0 Toolpusher's work station Rigwatch (Canrig) 0 Geologist's work station Chevron 0 Pit's work station RigWatch (Canrig) 0 1.2. PERSONNEL Unit Number: MLO4 Mudloggers Years Days Technician Days Sample Catchers Days Lees F. Browne Jr. 30 36 Steve Forrest 4 Emil Opitz 24 Tollef Winslow 2 33 Ryan Boothe 20 • CANRIG Chevron TRADING BAY UNIT M -10 • 2. GENERAL WELL DETAILS 2.1. OBJECTIVES M -10 is a development well that extends to the east from leg A -1 on the Steelhead Platform. Its primary targets are the Grayling Sands from the B -1 extending through to the D -06 sands. The target location is a shallow horizon that has little departure from the platform. The well design has a high angle pilot hole being drilled through the D -06 sand to evaluate the best sand package to target for a horizontal completion. Based on analysis from the MWD logs, a choice of the best productive sand will be chosen for a 1400' MD horizontal section to be drilled. The horizontal will be completed with open hole screen. 2.2. WELL RESUME Operator: UNION /CHEVRON Well Name: Trading Bay Unit M -10 Field and Pool: Steelhead Platform Trading Bay Unit State: County Alaska Kenai Borough Company Representatives: Hauck/Haynes /Leslie /Smith Location: SEC 33, T 9N, R13W, SM Elevation: — MSL RT: 160.2' MSL Classification: Development Gas API #: 50- 733 -20- 588 -00 (M -10) 50- 733 - 20588 -70 (M- 10PB1) Permit #: 2091540 AFE #: UWDAK -D- 0001 -DRL • Rig Name / Type: Steelhead Rig #51 Primary Target: Depth: Grayling Sands D3B /D2 5919'/5455' MD Secondary Targets: Depths: Grayling Sands B -1,3,5 C -1,3 Spud Date : -> Finish Date : -> 1/8/10 — 2/5/10 Total Depth: 7520' Total Depth Formation: Tyonek Mudlogging Company EPOCH /CANRIG DRILLING TECHNOLOGIES MWD Company: SCHLUMBERGER Tools Run: MWD: Survey, Gyro (Surface), Gamma, Resis, Neu Por Bulk Den, Sigma Directional Drilling: SCHLUMBERGER Drilling Fluids Company: BAROID 2.3. HOLE DATA Maximum Depth Mud Shoe Depth Hole T.D. Deviation Casing F.I.T. Section MD TVD Formation ppg t g ) ( ° inc) MD T VDSS 17.5" 1442' 1412' SZ 9.5 25.22° 13 3/8" 1402' - 1241.8' 9. 2PP9 9.25" 5800' 5784' D2 9.3 79.65° 7" 5789' - 4374' 11.2 6.125" 7520' 4555' D2 8.8 89.49 - 5789' - 5629' • 4 CANRIG UXILLim Ter rvu LID Chevron TRADING BAY UNIT M -10 3. GEOLOGICAL DATA 3.1. WELL LITHOLOGY ORIGINAL PLUG BACK Carbonaceous Shale (1485' - 1500') = Overall color is black with light brown tones in cleavage planes; poorly to carbonaceous shale (1485' - 1500'), brittle; cuttings habit is platy along bedding plane and massive in other directions; texture is matte; luster is greasy to waxy; lamina bedding is predominate; light brown carbonaceous material present; out gassing of shale observed. Tuffaceous Clay (1500' — 1600') = Color is medium dark gray to gray with some medium bluish gray beds; tenacity is stiff; no fracture observed; cuttings habit is massive; luster is waxy to greasy; texture is mostly clayey, but Slightly silty; no discernable structure; approximately 10% sand and some carbonaceous material. Sand (1600' — 1710') = Translucent and milky white grains with 5% light green grains and 5% dark gray grains; grains are upper fine to lower medium in size very well sorted; sand is not consolidated; no cement is present; matrix is predominately quartz with the darker grains being carbonaceous in origin; grains are sub - rounded to sub - angular with sphericity ranging from sub - discoid to sub prismoidal; sand is sub - mature texturally but compositionally mature; mineralogically the major component of the sand is quartz at approximately 85 %, the balance is made of 5% carbonaceous shale, 5% light green grains and 5% other; there are no secondary fossils; features or structures present; porosity and permeability estimated visually to be fair to good. Tuffaceous Clay (1685' - 1770') = medium gray to dark gray in color; tenacity is crunchy to crumbly; texture is clayey to silty; luster is dull; clay is cohesive with a lumpy consistency; there is no discernable • bedding; no fossils or accessory minerals present. Sand (1710' - 1770') = translucent, milky and medium gray grains, yielding an overall salt and pepper appearance; grains are lower medium to upper fine In size; sphericity is sub - discoidal to discoidal with sub - rounded and sub - angular rounding; well to very well sorted; sand is unconsolidated; cement is unknown; matrix is predominately quartz; sand is grain supported; texture is moderately mature; compositionally the sand is immature; quartz is the predominate matrix at 75% with the balance being carbonaceous coal, volcanics and light green grains; no fossils or accessory minerals. Tuffaceous Siltstone (1780' - 1910') = light gray; very poor to poorly Indurated; slightly sectile; lumpy to clumpy; clustered to clotted; gelatinous overall mushy to pasty; slimy; non to slightly cohesive; moderate adhesive; amorphous to earthy fracture; massive to sub nodular habit; moderate earthy luster; silty to clayey to ashy textures hydrophilic tuffaceous silts and clays; carbonaceous shale and coal @ 1880' Sand (1920' - 1980') = very light gray; clast size range medium lower to very fine upper; sub angular to sub round; moderate developed sphericity; poor sorting grading to moderate @ 1980'; impacted texture; immature nature; non to very slight siliceous cement; predominant unconsolidated; both grain and matrix support; grading to increased grain support with depth with general Increase to medium to fine grains with depth; matrix is loosely attached and Very hydrophilic in nature; composed of 80% quartz, 10% chert, 10% dark lithics; poor to fair estimated porosity and permeability; no show of oil. Tuffaceous Siltstone (1990' - 2030') = pinkish gray; very poor to poorly indurated; slightly sectile; clustered to clotted; gelatinous in parts; mushy to pasty; slimy; non to slightly cohesive; slight to moderate adhesive; amorphous fracture; massive to sub nodular habit; earthy to greasy luster; silty to ashy to clayey texture; massive gradational beds of clay, silt and sand with thin stringers of carbon shale. • 5 CANRIG Chevron TRADING BAY UNIT M -10 Sand (2040' - 2100') = very light gray to salt and pepper; clast size range medium grains to fine upper; sub angular to sub round; moderate sphericity; moderate sorting; impacted texture; sub mature nature; non to very slight siliceous cement; trace dense sandstone with tuff matrix; generally unconsolidated with grain support; possible local clay matrix support in parts; all matrix is loosely attached and hydrophilic; composed of 80% quartz, 10% chert, 10% lithics; fair porosity and permeability; no oil. Sand (2110' - 2190') = very light gray to light gray; clast size ranges from coarse lower to medium lower with abundant faction medium grains; sub angular to sub round; moderate developed sphericity; moderate to poor sorting; impacted texture; sub mature nature; non to very slight siliceous cement; predominant unconsolidated with slight sandstone clusters; slight clay matrix loosely attached with dominant grain support; composed of 80% quartz, 10% chert, 10% argillite, greenstone and various lithic. fragments; arenaceous sands becoming slightly dirty @2190'. Sand (2200' - 2310') = very light gray to light gray; clast size ranges from coarse lower to medium lower with abundant faction medium grains; sub angular to sub round; moderate developed sphericity; moderate to poor sorting; impacted texture; sub mature nature; non to very slight siliceous cement; predominant unconsolidated with slight sandstone clusters; some loose conglomerate; grain support with scattered loosely attached clay matrix in parts; composed of 90% quartz, 10% quartz and various lithic fragments; fair to good porosity and permeability; no show of oil. Coal /Carbonaceous Shale and Clay (2320' - 2340') = brownish black mottled black; firm; earthy to sub resinous luster; striated to micro woody textures; micro laminations of lignitic coal and very carbonaceous shale and carbonaceous clay; hackly to sub planar fracture; visible bleeding gas from larger cutting grading very carbon clays. Tuffaceous Siltstone (2350' - 2430') = pinkish gray to very light gray and various hues of both; poor induration; sectile; mushy; slimy; slightly cohesive slightly adhesive; earthy fracture; sub nodular habit; • moderate earthy luster; silty to clayey texture; massive gradational bed of tuffaceous silts; composed of 80% friable silt, 20% various detrital material (tuff, carbon specs, greenstone slag, etc). Carbonaceous Shale /Coal (2440' - 2460') = brownish black mottled black; firm; earthy to sub resinous lusters; hackly fracture becoming sub planar in very carbonaceous shales and clays; sub striated to matte textures; composed of very carbonaceous shale, carbonaceous clay and sub lignitic coals; visible Bleeding gas from most larger carbon fragments; grading into tuffaceous Siltstone. Tuffaceous Siltstone (2470' - 2490') = pinkish gray to very light gray and various hues of both; poor induration; sectile; mushy; slimy; slightly cohesive slightly adhesive; earthy fracture; sub nodular habit; moderate earthy luster; silty to clayey texture; massive gradational bed of tuffaceous silts. Tuffaceous Siltstone (2500' - 2540') = pinkish gray to very light gray and various hues of both; poor induration; sectile; mushy; slimy; slightly cohesive slightly adhesive; earthy fracture; sub nodular habit; moderate earthy luster; silty to clayey texture; massive gradational bed of tuffaceous silts. Carbonaceous Shale /Coal (2540' - 2600') = brownish black mottled black; firm; earthy to sub resinous lusters; hackly fracture becoming sub planar in very carbonaceous shales and clays; sub striated to matte textures; composed of very carbonaceous shale, carbonaceous clay and sub lignitic coals; visible bleeding gas. Carbonaceous Shale /Coal (2610' - 2630') = brownish black mottled black; firm; earthy to sub resinous lusters; hackly fracture becoming sub planar in very carbonaceous shales and clays; sub striated to matte textures; composed of very carbonaceous shale, carbonaceous clay and sub lignitic coals; visible bleeding gas from most cuttings. 1 110 6 CANRIG Chev on TRADING BAY UNIT M -10 • Tuffaceous Siltstone (2640' - 2690') = very light gray; poor induration; slight. sectile; mushy; slimy; non to slightly cohesive; slight to moderate adhesive; earthy fracture; sub nodular habit; moderate earthy luster; silty to ashy to. clayey texture; massive gradational tuffaceous silts and clays; composed of 70% silt, 30% clay; hydrophilic. Coal /Carbonaceous Shale and Carbonaceous Clay (2700' - 2770') = black mottled brownish black to light brown near contacts; generally firm; earthy to sub resinous luster; matte to sub striated textures; hackly to secondary sub planar fracture; composed of micro laminations of very carbonaceous shale and clay grading to sub lignitic to lignitic coals; visible bleeding gas from coal fragments. Sand (2780' - 2820') = pinkish gray to very light gray; clast size range from medium upper to fine lower; sub angular to sub round; moderate developed sphericity; moderate sorting; impacted texture; sub mature nature; non to very weak siliceous cement; unconsolidated with very hydrophilic clay matrix; both matrix and grain support; composed of 90% quartz, 10% chert and various minor lithics; fair some poor porosity + poor permeability; no oil indicators. Sand (2830' - 2870') = very light gray to light gray; clast size ranges from medium lower to fine lower; sub round; moderate with some well developed sphericity; moderate sorting; polish and impacted texture; sub mature to some mature nature; non to very weak siliceous cement; predominantly unconsolidated with scattered weakly clustered of consolidated sandstone; dominant grain support with slight white clay matrix clays loosely attached; composed of 90% quartz, 10% argillite, greenstone and trace various lithic fragments; fair to good porosity and permeability; no show of oil indicators. Coal /Carbonaceous Shale and Clay (2880' - 2920') = brownish black mottled black; firm; earthy to sub resinous luster; matte texture; hackly fracture; composed of various grades of lignitic to sub lignitic to very carbonaceous shale and carbon clays; visible bleeding gas from lignitic coals. 410 Sand (2930' - 3000') = very light gray to light gray; clast size ranges from medium upper to fine upper; sub round; moderate with some well developed sphericity; moderate sorting; polish and impacted texture; sub mature to some mature nature; non to very weak siliceous cement; predominantly unconsolidated dominant grain support some matrix support with slight white clay matrix clays loosely attached; composed of 90% quartz, 10% argillite, greenstone and trace various lithic fragments; fair to good porosity and permeability; no show of oil indicators. Tuffaceous Siltstone (3010' - 3090') = very light gray; poor induration; slight sectile; mushy; slimy; non to slightly cohesive; slight to moderate adhesive; earthy fracture; sub nodular habit; moderate earthy luster; silty to ashy to clayey texture; massive gradational tuffaceous silts and clays; composed of 70% silt, 30% clay; hydrophilic. Coal (3100' - 3150') = black some brownish black; firm some becoming hard; resinous luster with some earthy luster matte texture; hackly fracture; composed of lignitic coal; visible bleed from most lignitic cuttings; grading to very carbonaceous shale and carbon clay; scattered tuffaceous silts and gradational tuffaceous clay from very carbonaceous clay. Tuffaceous Siltstone (3160' - 3190') = very light gray; poor induration; slight sectile; mushy; slimy; non to slightly cohesive; slight to moderate adhesive; earthy fracture; sub nodular habit; moderate earthy luster; silty to ashy to clayey texture; massive gradational tuffaceous silts and clays; composed of 70% silt, 30% clay and various detrital material and carbon shale. • CAN RIG 7 Chevron TRADING BAY UNIT M -10 • Tuffaceous Claystone (3190' - 3210') = pinkish gray; poorly indurated; mushy to pasty; moderately adhesive with increasing clay content; sub earthy habit; moderate luster; silty to clayey to ash; top massive beds of tuffaceous claystone (70 %) and tuffaceous siltstone (30 %). Sand (3210' - 3280') = translucent and white and grayish black to black grains; grains are lower medium to upper medium in size; sphericity is spherical to sub - prismoidal and roundness is angular to sub- angular; sand is moderately to well sorted and unconsolidated; cement is unknown; matrix is 80% quartz and 20% coal /carbonaceous shale; sand is grain supported; texturally the sand is immature and compositionally sub- mature; no fossils, or structural materials observed; tuffaceous siltstone and tuffaceous claystone observed in the interval. Coal (3280' - 3300') = black with light brown shades present; hard but fractured with pressure; luster is greasy or earthy depending up fragment; texture is matte; coal fractures irregularly with some conchoidal fracture in more mature coals; interval varies between coal and carbonaceous shale, with coal being dominated; no out gassing of the coal observed; tuffaceous siltstone and sand also observed. Tuffaceous Siltstone (3300' - 3430') = light gray to medium light gray color overall with some pale yellowish orange grains; very poor to poorly Indurated; tenacity is stiff to elastic; texture is gritty; luster is dull and earthy; bedding is massive; cuttings habit is massive; sand is present, interpreted as thin beds with one thick bed. Coal /carbonaceous Shale (3420' - (3450')= coal is black while carbonaceous shale is black with brown earthy tones; coal is hard while carbonaceous shale fractures easily; luster is greasy or earthy; texture is matte; coal fracture conchoidal and carbonaceous shale irregularly; slight outgassing observed. Tuffaceous Siltstone (3450' - 3540') = medium gray to medium dark gray in color; poor to very poorly indurated; tenacity is stiff; texture is clayey with a slight grittiness; luster is dull to greasy; no discernable • bedding; few sands grains and carbonaceous siltstone also present. Sand (3540' - 3620') = grains are milky white, translucent and black in color with translucent being the predominant grain color; lower medium to upper fine grained in size; sub - angular to sub rounded and spherical to sub - discoidal sphericity; sand is well sorted and unconsolidated; cement is not present; matrix is 85% quartz, 5% carbonaceous shale, 5% volcanics and 5% light green lithics; sand is grain supported; texturally, the sand is sub - mature; compositionally, the sand is mature; permeability and porosity are visually estimated to be good. Tuffaceous Siltstone (3540' - 3740') = medium gray to dark gray in color; when exposed to water, soft; poorly to very poorly indurated; tenacity is stiff; fracture is not discernable; cuttings habit is massive; luster is waxy to dull; texture is silty to gritty; siltstone is interbedded with sand; tuffaceous sandstone also present, carbonaceous shale fragments are visible and can be interpreted as thin beds; no other accessories noted. Carbonaceous Shale (3745' - 3770') = black over all with light brown shades in cleavage planes; moderately hard to hard; moderate to well indurate; fracture is planar; cuttings habit is massive; luster is greasy to dull; shale is matte in texture; structure is laminated; no accessory minerals, fossils or structures observed; out gassing observed. Tuffaceous Siltstone (3770' - 3810') = medium gray to dark medium gray in color; induration is poor to very poor; tenacity is dense to brittle; tuffaceous siltstone displays a massive cuttings habit; luster is dull to earthy; texture is gritty to silty; structure of the formation is massive; no accessory minerals or fossils, the formation is homogenous. 8 CANRIG Chevron TRADING BAY UNIT M -10 • Sand (3810' - 3870) = milky white, translucent and black grains; grains are upper fine to lower medium in size; sphericity is sub - discoidal to spherical with sub - angular to sub- rounded rounding; sand is moderately to well sorted; sand is entirely unconsolidated; cement is not present; matrix is quartz (90 %) and carbonaceous shale /coal (10 %); grain supported matrix; texturally the sand is sub- mature while compositionally the sand is mature, approaching very mature; grains have a frosted appearance; quartz is the dominate mineral with less than 1% light green lithics; there are no fossils, secondary accessories or structural features observable. Carbonaceous Shale (3870' - 3890') = dark gray to grayish black with thin beds of dark yellowish brown in color; carbonaceous shale is moderately hard to hard; poor to moderate induration is exhibited; tenacity is brittle to dense; luster is vitreous; fracture is planar while the cuttings habit is massive; texture is massive; bedding structure is massive; no accessory minerals, fossils or structures noted; carbonaceous shale displayed some out gassing. Sand (3890' - 4065') = overall the sand has a salt and pepper appearance with translucent and white grains offset with black and pale yellowish orange grains; grains range in size from lower coarse to upper very fine in size with the majority being upper fine to lower medium; sphericity is sub - discoidal to discoidal with sub - angular to sub- rounded roundness; sand is poorly to moderately sorted and unconsolidated; cement is not present; matrix is translucent and milky white quartz grains (95 %) and carbonaceous shale /coal (5 %); texturally the sand is immature but compositionally mature; also present are volcanic clasts which range in size from very coarse to medium in size; porosity and permeability are visually estimated to be good. Carbonaceous Shale (4065' - 4130') = grayish black to dark gray in color; moderately hard to hard; moderate to well indurated; fracture is irregular with a few discoidal fractures observed as the carbonaceous shale grades into coal; cuttings habit is massive; luster is waxy to vitreous; texture is matte; structure is massive; segment is mostly carbonaceous shale however there is some which grades slightly • into a coal with conchoidal fractures; some out gassing was observed; no accessory mineral or structures observed. Sandstone (4130' - 4230') = milky white in color; grains are predominately upper medium to lower medium in size; sphericity is spherical to sub- discoidal with angular to sub - angular rounding; moderately to well sorted; moderately consolidated; cement is siliceous; matrix is quartz (90 %), carbonaceous shale (5 %) and other lithics (10 %); sandstone is grain supported; texturally the sandstone is immature while it is compositionally mature; visually estimated porosity and permeability is good; carbonaceous shale and tuffaceous siltstone also present in the interval. Sandstone (4230' - 4310) = translucent and milky white grains predominate with some black grains; grains are lower medium to upper fine in size; sphericity is spherical to sub - discoidal and exhibit angular to sub - angular rounding; poorly to moderately consolidated; cement is siliceous; matrix is 95% quartz with the balance composed of carbonaceous shale and lithics; sandstone is matrix supported; sandstone is well sorted; texturally the sandstone is sub - mature but compositionally it is mature; there are also volcanics present; permeability porosity visually estimated to be fair. Carbonaceous Shale (4310' - 4330') = grayish black to dark gray in color; moderately hard to hard; moderately to poorly indurated; tenacity is brittle to dense; cuttings habit is massive with an irregular fracture; texture is matte; displays a resinous luster; no discernable structure; light brown carbonaceous material also present; some out gassing present. Tuffaceous Siltstone (4330' — 4410') = medium gray to medium dark gray in color; soft to medium hard; moderately to poorly indurated; tenacity is still or brittle depending on cutting fragment; fracture is irregular; cuttings habit is massive; earthy luster; texture is clay to gritty; no discernable structure. CANRIG 9 C SOO TRADING BAY UNIT M -10 • Carbonaceous Shale /Carbonaceous Clay /Coal (4420' - 4500') black mottled brownish black and various hues of both; overall firm becoming brittle in carbon shale and clay; earthy luster in shales to sub resinous lusters in lignitic coals; hackly fracture in coal to sub planar fractures in carbon shale; composed of laminations of carbon shale and clay with thin beds of lignitic coals; visible bleeding gas in coal fragments; grading back into tuffaceous silt. Sand (4550' - 4580') = very light gray to some salt and pepper appearance; clast size range medium lower to fine lower; sub round; moderate developed sphericity; moderate sorting; impacted to some polished textures; sub mature to some mature nature; non to very weak siliceous cement; dominant grain support; very slight hydrophilic clay matrix; composed of >90% quartz with minor dark lithics. Sand (4590' - 4620') = very light gray; clast size range coarse lower to medium lower; sub round; moderate developed sphericity; moderate sorting; impact to polish textures; sub mature to mature nature; non to weak siliceous cement; slight consolidation but mainly unconsolidated; very slight clay matrix; dominant grain support; arenaceous; fair to good porosity and permeability; no oil shows. Coal /Carbonaceous Shale and Clay (4630' - 4660') = black mottled brownish black; firm; earthy to sub resinous luster; matte texture; hackly to sub planar fracture; composed of very carbonaceous shale and minor carbon clay at contacts to sub lignitic coal; very slight visible bleeding gas from coals. Sand /Sandstone (4660' - 4810') = translucent and milky white grains are predominate with black to grayish black grains; grains are lower medium to upper medium in size with coarse grains also present; sphericity is spherical to sub - discoidal and the roundness is sub - rounded to sub- angular; moderately sorted; sand is unconsolidated, sandstone is friable; cement is not present in sand, in sandstone it is either volcanic or siliceous; matrix is quartz (90 %), carbonaceous material (5 %), with volcanics and green lithics composing the remainder; texturally it is sub- mature, compositionally mature; no other accessories noted; visually porosity and permeability is estimated to be poor. 410 Tuffaceous Siltstone /Claystone (4660' - 4810') = medium dark gray to dark gray in color; soft to friable hardness; poorly indurated; tenacity is stiff; fracture is irregular; cuttings habit is massive; luster is dull to waxy; texture is gritty to clayey; structure is massive; some carbonaceous material noted with in the siltstone; no other accessories noted. Carbonaceous Shale /Coal (4810' - 4830') = medium gray to dark gray with moderate brown undertone, coal is black; hardness is hard to moderately hard; cuttings habit is massive; fracture is irregular; luster is resinous to waxy; texture is matte; structure is laminae; coal and carbonaceous shale interbedded, siltstone also observed bedded between coals. Sand /Sandstone/Tuffaceous Sandstone (4830' - 4950') = translucent and milky white grains; sand/ sandstone is bimodal between lower medium /upper fine and very fine grained; sphericity is spherical to sub - discoidal and roundness is rounded to sub - rounded; sandstone is friable; cement is siliceous or tuffaceous; texturally immature, compositionally mature; carbonaceous shale /coal also present. Carbonaceous Shale (4950' - 4970') = grayish black to black with earthy undertones; moderately hard to hard; moderately to well indurated; tough tenacity; resinous to greasy luster; matte texture; laminae bedding; no accessories noted; slight out gassing noted. Sand (4970' - 5130') = translucent and milky white grains most abundant with black grains, creating a salt and pepper appearance; sand is bimodal, lower medium to upper medium grains account for about 40% with the balance being upper coarse grained; sphericity is spherical to sub - discoidal; rounding is angular to sub - angular; moderately to poorly sorted; unconsolidated sand; cement is unknown; matrix is quartz; texturally, the sand is immature; compositionally, the sand is mature; mineralogically the sand is composed of 90% quartz5 5% lithics and 5% coal /carbonaceous shale; no fossils, or accessories noted; permeability and porosity visually estimated to be good. • 10 CANRIG Chevron TRADING BAY UNIT M -10 • Sand (5130' - 5210') = milky white, translucent, light green and black in color. sand begins predominately milky white and grades to translucent across the interval; grains are upper medium to upper fine in size; grains are spherical to sub - discoidal in sphericity; rounding is sub - angular to angular; moderately to poorly sorted; matrix is 85% quartz, 10% carbonaceous shale /coal and 5% lithics; sand is unconsolidated; texturally, the sand is immature; compositionally the sand is mature; the sand grades from upper medium to upper fine and then back to upper medium in size; carbonaceous shale /coal is black to grayish black with some brownish hues, irregular fracture habit, luster is greasy to resinous, texture is matte, structure is massive; no other accessories noted; porosity and permeability visually estimated to be good. Sand (5210' - 5350') = translucent, milky white, and black grains; lower medium to upper medium in size; sphericity is spherical to sub - discoidal with angular to sub - rounded rounding; well to moderately well sorted; unconsolidated sand; cement, if any, unknown; matrix varies from 75% - 90% quartz, with carbonaceous shale /coal ranges from 10% to 25% across the interval; texturally the sand is immature; compositionally is mature to sub - mature; carbonaceous shale /coal exhibits same grain characteristics as quartz sand; light green lithics (less than 1% present).porosity and permeability visually estimated to be good; grading to tuffaceous silts and clays with depth. Carbonaceous Shale and Clay /Coal (5360' - 5430') = brownish black mottled grayish black to black; firm occasionally hard in larger coal fragments; earthy mottled sub resinous luster; matte texture; sub planar fractures in very carbonaceous shales (along shale partings) to hackly fractures in lignitic coals; composed of hetrogeneous carbonaceous shale and coal; slight visible bleeding gas from coal cuttings. Tuffaceous Silt and Clay (5440' - 5450') = pinkish gray; poor induration; slightly sectile; mushy to pasty; hydrophilic; earthy fracture; sub nodular habit; earthy to greasy luster; silty to ashy texture; gradational tuffaceous silt and clays; composed of 70% silt, 30% clay + various detrital material; samples fair with periodic hi -vis sweeps to clean the hole of excess cuttings. • Sandstone/Tuffaceous Sand /Sand (5460' - 5500') = very light gray to pinkish gray clast size range coarse lower to very fine grain; sub round; median size grain is medium grains; very poorly sorted; polished to sub impacted textures; immature nature; moderate to abundant clay /ash matrix loosely attached packed matrix; gradational beds of tuffaceous silts grading to tuffaceous sands with depth; poor grading to fair porosity with depth; poor permeability with abundant matrix material; no oil shows. Sand (5510' - 5590') = very light gray; clast size range coarse lower to fine upper; sub round scattered angular bit impacted fragments angular; poor to moderate sorting; abundant faction is medium grains; impacted textures; sub mature nature gradational mature; appears arenaceous; scattered dense sandstone in parts; dominant grain support; appears in parts as a sub greywacke; composed of 80% quartz, 10% chert, 10% dark lithics; fair to poor (tight) porosity and permeability; nsfoc Tuffaceous Siltstone (5590' - 5740') = medium gray to medium dark gray in color; soft to medium hard; moderately indurated; tenacity is stiff to elastic; cuttings habit is massive; texture is gritty to clayey; luster is dull to earthy; structure is massive; no bedding observed; no accessory minerals or fossils noted. Tuffaceous Sandstone (5670' - 5730') = olive gray in color; grains are lower very fine to upper very fine in size; grains are spherical to sub - discoidal in sphericity; rounding is sub - rounded to rounded; sandstone is well sorted; moderate to poorly consolidated; cement is volcanic tuff; matrix is quartz; sandstone is matrix supported; texturally, the sandstone is mature; compositionally, the sandstone is mature; mineral composition is quartz; dark carbonaceous material is present is most of the sandstone either in thin laminae, or small dark grains; poor porosity and permeability; no oil shows. Tuffaceous Siltstone (5740' - 5830') = pinkish gray; poor induration; slightly sectile; mushy to pasty; non to slightly cohesive; slight to moderately adhesive; earthy fracture; sub nodular habit; earthy luster; ashy to silty to clayey texture; uniform homogeneous silts composed of 80% silt, 20% clay. 11 CANRIG Cheman TRADING BAY UNIT M -10 Carbonaceous Shale /Coal (5830' - 5880') = black to grayish black with earthy brown laminations; friable to moderately hard in hardness; poorly to well indurated; tenacity is brittle to tough; cuttings habit is massive; texture is matte; structure of the carbonaceous shale is laminar, alternating between more mature carbonaceous shale, almost low grade coal and earthy brown carbonaceous material; coal is hard, well indurated with a tough tenacity, massive cuttings habit, matte texture, conchoidal fracture, vitreous luster and irregular cuttings habit; outgassing observed in both carbonaceous shale and coal. Carbonaceous Shale (5880' - 5980') = grayish black to dark gray with light brown to moderate brown laminations visible; hardness is moderately hard; poor to moderately indurated; tenacity is brittle to dense; cuttings habit is massive and irregular; luster is resinous to greasy; texture is matte; structure is laminae; thin beds of more mature carbonaceous material (grayish black to dark gray) are alternated with thin beds of less mature material (light brown to moderate brown); slight outgassing Visible throughout the interval. Tuffaceous Siltstone (5980' - 6000') = olive black to grayish black in color; moderately hard; poor to moderate induration; tenacity is brittle to crumbly; fracture is irregular; cuttings habit is massive; luster is dull to earthy; texture is gritty to clayey; texture is matte; structure is laminae; carbonaceous material is laminated with in beds of the tuffaceous siltstone, it is light brown, to moderate brown, to black; at times the carbonaceous material grades to carbonaceous siltstone and Tuffaceous shale is thinner than the carbonaceous siltstone. Carbonaceous Shale /Coal (6000' - 6035') = grayish black to dark gray in color; moderately hard; moderate to poorly indurated; tenacity is brittle to dense; fracture is irregular; cuttings habit is massive; luster is resinous to greasy; texture is matte; structure is laminated; coal is black, very hard, well indurated, tough tenacity, conchoidal fracture, massive cuttings habit, vitreous luster, matte texture and massive structure; coal, carbonaceous shale and tuffaceous sandstone are interbedded towards the end of the interval; moderate outgassing displayed in the coal and carbonaceous shale. • Sand (6035' - 6210') = translucent, milky white and black grains, yielding an overall salt and pepper appearance; grains are lower medium in size; well to very well sorted; sphericity is sub- discoidal to spherical; rounding is sub - rounded to rounded; sand is unconsolidated; cement is not present; matrix is 90% quartz; 8% carbonaceous shale /coal; 1% chert and 1% other lithics; texturally, the sand is mature; compositionally the sand is mature; no mechanical abrasion features noted; other lithics include volcanics and light green lithics; porosity and permeability visually estimated to be good; no oil /gas indicators. Sand (6210' - 6350') = translucent, milky white, black, and light green grains, overall appearance is that of salt and pepper; grain size is predominately lower medium to upper medium, however 10% of the grains are coarse; sphericity is sub - discoidal to spherical; sub - rounded to rounded grains are predominant; moderately to well sorted; sand is unconsolidated; cement is not present; matrix is quartz; texturally the sand is sub- mature; compositionally the sand is mature; quartz is the major mineral at 90% - 95% through out the interval, carbonaceous shale /coal accounts for 5% - 8% of the grains and the balance of the grains being volcanics, chert, and green lithics; no secondary features, accessories or fossils noted; porosity and permeability visually estimated to be good; no oil /gas Indicators present. Sand (6360' - 6420') = very light gray; clast size ranges from coarse lower to medium lower with scattered angular bit impacted pebbles; abundant faction medium grains; sub angular to sub round; poor to moderate developed sphericity; poor sorting; impacted to minor chip textures; sub mature nature; no visible cement; unconsolidated; slight clay /silt hydrophilic matrix; dominant grain support; composed of 80% quartz, 10% chert, 10% dark lithics; fair grading to poor porosity and permeability with depth; grading to tuffaceous silt. Tuffaceous Siltstone (6430' - 6480') = pinkish gray; poorly indurated; brittle; mushy; non to very slightly cohesive; slightly adhesive; hydrophilic; earthy fracture; sub nodular habit; moderate earthy luster; silty to ashy texture; gradational beds of tuffaceous silt and sands; sands decreasing with depth. 410 12 CANRIG Chevron NW TRADING BAY UNIT M -10 • Coal /Carbonaceous Shale (6490' - 6530') = brownish black mottled black; firm; earthy luster mottled resinous luster in lignitic coal; matte texture; hackly fracture in lignitic coal to sub planar fracture in carbonaceous shale and very carbonaceous claystone; composed of very carbon shale laminated with sub lignitic to lignitic coal; slight bleeds of gas from lignitic coal. Tuffaceous Siltstone (6530' - 6560') = pinkish gray; poorly indurated; brittle; mushy; non to very slightly cohesive; slightly adhesive; hydrophilic; earthy fracture; sub nodular habit; moderate earthy luster; silty to ashy texture; gradational beds of tuffaceous silt and carbonaceous clay laminations. Coal (6570' - 6600') = black; firm to hard; resinous luster; matte to semi smooth textures; sub conchoidal to hackly fractures; composed of lignitic to sub bituminous coal; visible bleeding gas from cuttings. Tuffaceous Siltstone (6610' - 6690') = pinkish gray to grayish orange; poorly indurated; brittle; non to very slight cohesiveness; slightly adhesive; slight crumble to crunchy with interbedded very fine grain sandstone grading to tuffaceous sand with depth; earthy fracture; sub nodular habit; earthy luster; silty to gritty to ashy textures gradational beds of tuffaceous silt, tuffaceous sand, clay and very fine grained sandstones and various detrital material; grading to tuffaceous sandstone at 6650'. Coal /Carbonaceous Shale (6700' - 6770') = brownish black mottled black; firm to some hard; resinous mottled earthy luster; matte texture; hackly to sub conchoidal fracture; composed of very carbonaceous shale mottled lignite to sub bituminous coal; visible bleeding gas from coal cuttings; grading to tuffaceous siltstone to 6750'. Sand /Conglomerate Sand (6770' - 6850') = very light gray to light gray; clast size range pebble to very coarse upper to coarse to fine upper; angular bit impacted pebbles to sub round medium to fine grains; no abundant size faction; low to moderate sphericity; very poor sorting; polished to chip texture; sub mature nature; no visible cement; dominant grain support with slight silt matrix = hydrophilic; composed of 90% • quartz, 10% chert and minor lithics; fair porosity and permeability; no oil indicators. Coal /Carbonaceous Shale (6860' - 6890') = black with brownish black laminations; firm to hard; sub conchoidal fractures to sub planar fractures in very carbon shale; matte to smooth texture; composed of lignitic to bituminous coal with micro laminations of very carbon shale and carbon clay; visible bleeding gas from most coal cuttings. Sand (6910' - 6940') = very light gray; clast size ranges from coarse lower to fine lower; scattered angular bit impact pebbles; sub round medium grains; moderate developed sphericity; poor sorting; mean faction medium to fine grains with moderate sorting; chipped to impacted textures; arenaceous appearance; dominant grain support; no visible matrix; composed of >90% quartz; good porosity & permeability; no oil indicators. 411 13 CANRIG Chevron IWO TRADING BAY UNIT M -10 • 3.2. WELL LITHOLOGY LATERAL Carbonaceous Shale (4070' - 4130') = dark gray to grayish black in color; moderately hard to hard; poor to well indurated with the majority being moderately indurated; tenacity is dense to brittle; cuttings habit is massive; texture is matte; resinous to greasy luster; exhibits a planar fracture; bedding is laminated to massive; as the interval progresses, carbonaceous shale is interbedded with tuffaceous siltstone with approximately 10% being tuffaceous siltstone bordering on tuffaceous sandstone; no other accessories noted. Sand /Sandstone (4130' - 4300') = translucent and black grains yielding an overall salt and pepper appearance; grains are lower medium to upper medium in size; sphericity is spherical to sub - discoidal; grains exhibit sub- rounded to rounded rounding; sand is well to moderately well sorted; sand is unconsolidated while the sandstone is easily friable; cement in the sandstone is siliceous; matrix 90% quartz and 10% carbonaceous shale /coal; sandstone is matrix supported; texturally the sand /sandstone is mature to sub - mature; compositionally the sand /sandstone is mature; dominate mineral is quartz (90 %) with the balance being coal /carbonaceous shale and < 1% volcanics; light green lithics are the only accessories noted; visually the porosity and permeability is estimated to be poor; no petroleum indicators present. Carbonaceous Shale (4300' - 4350') = medium gray to dark gray with light brown shades; moderate to moderately well indurated; moderately hard to hard; cuttings habit is massive; texture is matte; fracture is planar; luster is greasy to resinous; bedding is laminar; interbedded with tuffaceous siltstone at times; no other accessory elements noted; no oil /gas indicators. Tuffaceous Siltstone (4360' - 4370') = pinkish gray; poor induration; mushy; non to very slightly cohesive; slightly adhesive; earthy fracture; sub nodular habit; earthy luster; silty to ashy text hydrophilic; grading to scattered medium grained sands. Sand (4380' - 4480') = very light gray; clast size range coarse lower to fine lower; sub round; moderate developed sphericity; moderate to poor sorting; abundant faction medium grains; impact texture; sub mature nature; arenaceous; non to very weak siliceous cement; non to very slight clay matrix; dominant grain support; composed of 90% quartz, 10% chert and various lithic fragments; fair to good porosity + permeability; no oil. Carbonaceous Shale /Coal (4480' - 4510') = dark gray to grayish black with light brown sub -tones grading to black (coal); moderately hard to hard; moderately well indurated to well indurated; tenacity is brittle to dense; fracture is irregular planar in the carbonaceous shale and massive with some conchoidal fractures in the coal; cuttings habit is massive; texture is matte; luster is greasy to resinous; structure is laminar; carbonaceous shale and coal are interbedded; moderate outgassing observed in both coal and carbonaceous shale; no other oil or gas indicators noted. Tuffaceous Siltstone (4510' - 4630') = medium light gray to light gray in color; soft; poorly to moderately indurated; tenacity is crumbly to crunchy; siltstone fractures irregularly; cuttings habit is massive; luster is dull to earth; texture is silty to gritty; structure is massive; at times the siltstone will grade to a very fine grained sandstone and in other instances a conglomerate very fine grained sandstone; no other accessories noted; no oil or gas indicators present. Carbonaceous Shale /coal (4630' - 4660') = grayish black to black with light brown hues; moderately hard to hard at times easily friable; moderate to well indurated; tenacity is brittle to dense; fracture is irregular in carbonaceous shale and conchoidal in coals; cuttings habit is massive; luster is greasy to resinous; texture is matte; structure is laminated to massive; moderate out gassing observed; no other accessories or oil /gas indicators observed. 14 • CANRIG Chevron TRADING BAY UNIT M -10 411 Sand /tuffaceous Sand /Conglomerate Sand (4670' - 4740') = very light gray to light gray; clast size range coarse upper to fine upper; sub round; moderate sphericity; poor sorting; impact texture sub mature nature; non to slight siliceous cement; slight silt/clay matrix; scatter weak sandstone and interbedded sandy silts; grain supported; sub arenaceous; composed of 90% quartz, 10% lithics; fair porosity and permeability; no oil. Sand/Tuffaceous Sand /Conglomerate Sand (4750' - 4810') = very Tight gray to light gray; clast size range coarse upper to fine upper; sub round; moderate sphericity; poor sorting; impact texture sub mature nature; non to slight siliceous cement; slight silt/clay matrix; scatter weak sandstone and interbedded sandy silts; grain supported; sub arenaceous; composed of 90% quartz, 10% lithics; fair porosity and permeability; no oil. Carbonaceous Shale /Coal (4820' - 4860') = black mottled brownish black to dark brown; firm; earthy to resinous lusters; matte texture; sub planar to sub hackly fractures; composed of lignite to very carbonaceous shale; visible bleeding gas from most coal cuttings. Tuffaceous Siltstone (4870' - 4920') = pinkish gray to very pale orange and various hues of both; poorly indurated; mushy; non to very slightly cohesive; slightly adhesive; earthy fracture; sub nodular habit; moderate earthy luster; ashy to silty texture; gradations of tuffaceous siltstone, tuffaceous clay, sands and detrital material; all silts and clays are very hydrophilic; poor samples with abundant mud products added to the mud for sweeps. Tuffaceous Siltstone (4920' - 4980') = pinkish gray to very pale orange and various hues of both; poorly indurated; mushy; non to very slightly cohesive; slightly adhesive; earthy fracture; sub nodular habit; moderate earthy luster; ashy to silty texture; gradations of tuffaceous siltstone, tuffaceous clay, sands and detrital material; all silts and clays are very hydrophilic; poor samples with abundant mud products added to the mud for sweeps. • Coal /Carbonaceous Shale (4990' - 5010') = black mottled brownish black; firm; earthy to sub resinous luster; matte texture; sub planar to sub resinous luster; composed of lignitic coal to very carbonaceous shale; visible bleeds of gas from coal fragments. Sand (5030' - 5090') = translucent, milky white grains with black grains; upper medium to lower medium in size, some lower very course; sphericity is spherical to sub - discoidal; roundness is sub - rounded to rounded; moderate to well sorted; unconsolidated sand; cement type is unknown; matrix is quartz (95 %) and carbonaceous material (5 %); compositionally, mature; texturally, sub - mature; no oil /gas indicators noted. Sand (5100' - 5130') = very light gray, clast size ranges from coarse lower to fine upper; abundant faction is medium grains; sub round; moderate developed sphericity; moderate sorting; impacted texture; sub mature to mature nature; unconsolidated; no visible matrix; dominant grain support; arenaceous; composed of 80% quartz, 10% chert, 10% various dark lithic fragments; good porosity and permeability; no show of oil indicators. Sand /Conglomerate Sand (5140' - 5220') = salt & pepper to light gray; clast size pebble to fine grains; abundant angular bit impacted fragments; mean sub angular to sub round; poor to moderate sorting; unconsolidated; slight matrix clays in coarse grains; appears as a sub greywacke; in coarse sections; composed of 60% quartz, 10% chert, 30% lithics; fair to good porosity and permeability; no show of any oil indicators. 15 CANRIG Cuewon IMO TRADING BAY UNIT M -10 • Sand /Conglomerate Sand (5220' - 5340') = translucent, milky white, and black grains; grains are bi- modal between upper fine and lower coarse, also present are very coarse grains (< 5 %); sand is spherical to sub- discoidal in sphericity, conglomerates are sub - prismoidal to spherical; both sand and conglomerates are sub - rounded to rounded; moderately to poorly sorted; sand is unconsolidated; cement is not present; texturally the sand is immature, compositionally, the sand is mature; miner logically, quartz is the dominate mineral (95 %), carbonaceous siltstone /coal makes the balance (5 %); light green lithics also present; no other secondary features or accessory minerals noted; porosity and permeability visually estimated to be good to fair; no oil indicators noted. Sand /Conglomerate Sand (5340' - 5430') = translucent, milky white and black grains giving the sand an overall salt and pepper appearance; grain size is upper medium to upper fine overall with conglomerate clasts in the very coarse grained class; sphericity is spherical to sub - discoidal; roundness is angular to sub - rounded; sand is moderately to moderately well sorted; unconsolidated sand; cement, which is present in tuffaceous siltstone (presumed source rock (5% visible)) is tuff; matrix is quartz (95 %) with coal/ carbonaceous material (5 %); sand is texturally immature; compositionally the sand is mature; accessories to the matrix are light green lithics and volcanics; no other accessories or fossils noted; estimated visual porosity and permeability is good to fair; no oil indicators noted. Sand /Conglomerate Sand (5430' - 5560') = translucent, milky white and black grains, overall salt and pepper appearance; grain size begins the interval as lower coarse to upper medium and progresses to upper very coarse towards the end of the interval; sphericity is spherical to sub - discoidal; roundness is angular to sub - rounded; sorting is poor to moderately poor; sand is unconsolidated; matrix is quartz; texturally the sand is immature; compositionally the sand is mature; quartz is 95% of the matrix with the balance composed of carbonaceous material, volcanics and green lithics; porosity and permeability visually estimated to be fair to poor; no oil indicators present. Tuffaceous Siltstone /Claystone (5560' - 5610') = greenish gray; soft; poorly indurated; tenacity is flexibile to elastic; no fracture; cuttings habit is massive; luster is dull; texture is clayey to gritty; structure is massive; claystone is cohesive to adhesive and has a consistency of stiff to slimy; no accessory minerals or structures noted; no petroleum indicators noted. Carbonaceous Shale /Coal (5610' - 5685') = brownish gray to brownish black some black; grading to Iignitic coal with depth; brittle to firm; predominant earthy luster; planar fracture along shale partings; composed of very carbon shale /clay laminated with Iignitic coal; visible bleeding gas from coals. Carbonaceous Shale /Coal (5690' - 5740') = black mottled brownish black; firm; earthy to resinous luster; increase in coal percentage with depth; hackly to sub conchoidal fractures; composed of very carbonaceous shale grading to predominant Iignitic coal; visible bleed of gas from coal cuttings. Sand (5750' - 5800') = very light gray; clast size range coarse lower to fine upper; sub round; poor to moderate sorting; impacted grains; sub mature nature; slight fine grain sandstone as matrix; dominant grain support; fair estimated porosity; fair to poor quality samples with abundant coal cavings (50 %) no oil indicators. Sand (5830' - 5890') = very light gray; clast size medium upper to fine lower; sub round to rounded; moderate to some well developed sphericity; moderate to poor sorting; pitted texture; sub mature nature; unconsolidated; very slight to moderate silt/ash matrix; gradational; very hydrophilic; both grain and matrix support; arenaceous to ashy support; poor to fair porosity and permeability; no show of oil indicators. 16 CANRIG Chevron TRADING BAY UNIT M -10 • Sand (5890' - 6010) = overall color is medium gray to light gray; lower medium to upper medium in size; sphericity is spherical to sub - discoidal; rounding is sub - angular to sub - rounded; sand is unconsolidated; cement, when present, is siliceous or volcanic in origin; matrix is quartz (95 %); well to very well sorted; texturally the sand is sub - mature; compositionally the sand is mature; mineralogy: quartz (95 %); with the balance composed of coarse grained green lithics, coarse grained chert which varies in appearance similar to smokey quartz to medium light gray; also present are pale, yellowish orange volcanics; black to moderate brown carbonaceous shale /coal, medium grained in size; and tuffaceous siltstone, which exhibits bedding planes composed of light brown carbonaceous material and <5% lower very fine grained sand; visually the porosity and permeability is estimated to be good; no oil indicators noted. Sand (6010' - 6130) = sand is medium gray to medium light gray in color; grains are predominately lower medium to upper medium in size with 5% being upper coarse to lower coarse grained in size; grains are spherical to sub - discoidal in sphericity; rounding is sub - angular - to rounded; sand is well sorted to very well sorted; sand is unconsolidated, sandstone is friable to poorly consolidated; matrix is volcanics and silicates; sandstone is matrix supported; texturally the sand is sub - mature; compositionally the sand is mature; translucent quartz is the predominate mineral; black carbonaceous material is present; green lithics, volcanics and chert is also present; no other fossils or accessories noted; visually the porosity and permeability Is estimated to be good; no oil indicators present. Sand (6130' - 6250') = medium to light medium gray trending to medium gray, dark gray; grains are bimodal, lower medium to upper medium, upper coarse, to lower coarse at the beginning of the interval and coarse grained at the end; sphericity is sub- prismoidal to sub- discoidal; rounding is angular to rounded; moderately to moderately well sorted; sand is unconsolidated, sandstone is friable to poorly consolidated; cement is siliceous; matrix is volcanic in origin; sandstone is matrix supported; texturally the sand grains are immature; sand is compositionally sub - mature; quartz is the predominate mineral, black, carbonaceous material, chert, light green lithics are also present; no other secondary features, accessories, fossils noted; porosity and permeability visually estimated to be good; no oil indicators • present. Sand (6250' - 6370') = medium dark gray to medium gray in color; upper fine to lower course in grain size, most grains are upper to lower medium in size; sphericity is spherical to sub- discoidal; roundness is angular to sub - rounded; moderately well to well sorted; sand is unconsolidated; matrix is siliceous in some sandstone fragments and volcanic in others; sandstone is matrix supported; texturally sand is immature; compositionally mature; mineral is milky white and translucent quartz; also present is carbonaceous material /coal, chert, volcanics and green lithics; no other accessories noted; visual estimation of porosity and permeability is good; no oil indicators noted. Sand (6370' - 6460') = medium light gray to light gray in color, overall sand has a salt and pepper appearance; grain size is predominately upper medium to lower medium with occasional grains which are fine or coarse; grains are spherical to sub - discoidal in sphericity; roundness is sub - angular to sub - rounded; sand is well sorted to very well sorted; sand is unconsolidated; matrix is indeterminate; texturally immature sand; compositionally the sand is mature; translucent and milky white quartz is the major mineral (90 %), the balance is made up of carbonaceous shale /coal, and chert; no other fossils, minerals or structures noted; visually the porosity and permeability are good; no oil indicators noted. Sand (6460' - 6550') = medium light gray to light gray in color; grains are upper medium to lower medium in size; sphericity is spherical to sub - discoidal; roundness is sub - angular to rounded; sand is well sorted to very well sorted; sand is unconsolidated; texturally the sand is sub - mature; compositionally the sand is mature; major mineral in the sand is translucent quartz; also present is carbonaceous shale, coal, chert and volcanics; no fossils, structure or other accessories noted; porosity and permeability visually estimated to be good; no oil indicators noted. 17 CANRIG Chevron W TRADING BAY UNIT M -10 Sand (6550' - 6710') = light gray to medium light gray in color, quartz grains are translucent to milky white, with some black carbonaceous shale /coal giving the sand a salt and pepper appearance; grain size is lower medium to upper medium in size; sphericity is spherical to sub - discoidal; roundness is sub - angular to sub - rounded; sand is well sorted to very well sorted; sand is unconsolidated, while sandstone grains are friable to very poorly consolidated; matrix of the sandstone is siliceous; sandstone is matrix supported; texturally the sand is immature; compositionally the sand is mature; quartz is the predominate mineral at 90 %, with the balance being carbonaceous shale /coal and chert; no other accessories noted; porosity and permeability visually estimated to be good; no oil indicators present. Lithic Tuff to Devitrified Ash grading to Tuffaceous Siltstone (6715' - 6765') = very light gray to pinkish gray and hues of both; moderate induration; frosted luster; silty to gritty to ashy texture; crumbly to crunchy; slight to moderate calcareous; composed of devitrified ash to lithic tuff composed of tuffaceous silt, silty ash to ash; composed of volcanic glass shards, coal specs, tuffaceous silts; slightly reworked; tuff displaying slight increase in gray hues with depth; scattered siderite in the 6760' sample. Conglomerate Sand /Sand (6770' - 6825') = medium gray; clast size coarse upper to medium lower; sub round; moderate sphericity; moderate to poor sorting; pit to impact texture; sub mature to mature nature; unconsolidated; no mean size faction; dominant grain support; no visible matrix; arenaceous; good visible porosity and permeability; appears as a sub greywacke; no oil indicators. Sand (6825' - 6895') = translucent, milky white and black grains; coarse grains with some upper fines; spherical to sub - discoidal sphericity; angular to sub - angular roundness; moderate sorting; sand is unconsolidated; texturally the sand is immature; compositionally mature; mineral: quartz (90 %), chert, carbonaceous shale /coal; porosity /permeability visually appears good; no oil indicators. Tuffaceous Clay /Siltstone (6895' - 6915') = light olive gray to olive gray; very poorly indurated to non indurated; tenacity is elastic to flexible; cuttings habit is massive; luster is waxy to greasy; texture is gritty to silty; structure is massive; bedding is not apparent; small amounts of carbonaceous material present; no other accessories noted; vigorous out gassing observed; no oil indicators noted. Sand (6915' - 7060') = milky white, translucent, and black grains giving the sand an overall pepper and salt appearance; grain are lower coarse to upper medium in size grading to upper to lower medium in size as the interval progresses; sphericity is spherical to sub - discoidal; roundness is angular to sub - rounded; cement is unknown; matrix is unknown; texturally the sand is immature; compositionally the sand is sub - mature; quartz is the predominate mineral at 90 %, the balance being carbonaceous shale /coal, chert and volcanics; no other secondary features noted; porosity and permeability visually estimated to be good; no oil indicators noted. Sand (7060' - 7150') = translucent, milky white and black grains yielding a color similar to salt and pepper; grains are lower medium to upper medium with <5% in the coarse grain size; sphericity is spherical to sub - discoidal; rounding is angular to sub - rounded; sorting is well to moderate; sand is unconsolidated; cement is unknown; matrix is unknown; sand is texturally sub - mature; compositionally, the sand is mature; grains are quartz (95 %), chert, carbonaceous shale /coal and volcanics; no other accessories noted; porosity and permeability visually estimated to be good; no oil indicators noted. Sand (7150' - 7140') = translucent, milky white and black grains, overall the sand looks like salt and pepper; grains are upper medium to lower medium in size with occasional lower coarse grains; sphericity is spherical to sub - discoidal; roundness is angular to sub - rounded; sand is well sorted; unconsolidated sand; cement is missing; matrix is unknown; texturally the sand is sub - mature; compositionally it is mature; quartz is the primary mineral at 95 %, also present is chert, volcanics and carbonaceous shale; carbonaceous shale is moderate brown to light brown, poorly indurated, massive cuttings habit, laminar beds, outgassing observed; visual estimated porosity and permeability is good; no oil indicators noted. 18 CANRIG Chevron TRADING BAY UNIT M -10 • Sand (7150' - 7330') = very light gray; clast size range coarse lower to fine upper; abundant faction of medium 9 rains sub round to some rounded; moderate some well developed sphericity; moderate sorting; impacted texture; sub mature to mature nature; no visible cement; unconsolidated; no visible matrix material; dominant grain support; arenaceous; composed of 90% quartz, 10% chert and trace greenstone, argillite, and feldspar; trace ash at 7330'; good porosity and permeability; no show of oil indicators. Sand (7340' - 7420') = very light gray; clast size ranges from coarse lower to fine upper; abundant faction is medium grains; sub round to round; moderate to some well developed sphericity; moderate sorting; impacted texture; sub mature to mature nature; no visible cement; dominant grain support with slight white ash support at 7360' and 7420'; overall arenaceous; composed of 90% quartz, 10% chert with minor lithics: greenstone; feldspar and siliceous mudstone grains; some consolidated sandstone clusters and trace siderite at 7360'; trace disseminated pyrite on ash at 7420'; good estimated porosity and permeability; even clast size throughout the zone. Sand (7430' - 7520') = very light gray; clast size ranges from medium upper to fine upper; sub round to rounded; moderate to some well developed sphericity; moderate to some well sorting; impacted texture; mature nature no visible cement; unconsolidated; no visible matrix; dominant grain support; arenaceous; composed of >90% quartz with minor chert and trace lithics; good porosity and permeability; no show of oil indicators. • 19 CANRIG Chevron TRADING BAY UNIT M -10 0 3.3. FORMATION /ZONE MARKER TOPS Note: CT: Coal Top CB: Coal Base ST: Sand Top SB: Sand Base. FORMATION ACTUAL MD (ft) SSTVD (ft) Coal 530 -370 Coal Base 556 -396 SZOCT 801 -640 SZOCB 806 -645 SZ1CT 864 -702 SZ1CB 875 -713 SZ2CT 951 -788 SZ2CB 955 -792 SZ3CT 994 -830 SZ3CB 1001 -837 SZ4CT 1053 -888 SZ4CB 1078 -912 SZ5ST 1091 -925 SZ5CT 1133 -965 SZ5CB 1139 -970 SZ6ST 1149 -980 410 SZ6SB 1218 -1045 SZ6CT 1236 -1062 SZ6CB 1251 -1077 SZ7CT 1286 -1109 SZ7CB 1298 -1120 SZ8CT 1352 -1170 SZ8CB 1363 -1180 CSG SHOE 1404 -1217 SZ9CT 1410 -1222 SZ9CB 1422 -1233 CSG PT 1441 -1250 SZ10mCT 1446 -1255 SZ10mCB 1464 -1271 SZ10CT 1495 -1299 SZ10CB 1503 -1306 SZ11BST 1592 -1382 SZ11BSB 1656 -1435 SZ11CT 1694 -1466 SZ11CB 1711 -1479 SZ12ST 1730 -1494 SZ12SB 1787 -1538 SZ12CT 1790 -1540 • 20 CANRIG Chevron TRADING BAY UNIT M -10 O SZ12CB 1813 -1557 SZ13ST 1830 -1570 SZ13SB 1885 -1610 SZ13CT 1888 -1612 SZ13CB 1893 -1616 SZ14ST 1908 -1626 SZ14CT 1983 -1678 SZ14CB 1995 -1686 SZ15ST 2056 -1727 SZ15SB 2079 -1743 SZ16ST 2087 -1748 SZ16CT 2305 -1896 SZ16CB 2337 -1918 SZ17ST 2361 -1935 SZ17SB 2393 -1957 SZ17CT 2431 -1983 SZ17CB 2439 -1988 SZ18CT 2577 -2083 SZ18CB 2598 -2097 SZ19CT 2673 -2149 SZ19CB 2678 -2152 SZ2OCT 2762 -2210 • SZ2OCB 2771 -2216 SZ21ST 2780 -2222 SZ21CT 2893 -2300 SZ21CB 2913 -2315 SZ22CT 2971 -2357 SZ22CB 2991 -2372 SZ23BCT 3126 -2477 SZ23BCB 3129 -2479 ACT 3149 -2495 ACB 3158 -2503 A1CT 3196 -2533 A1CB 3202 -2538 A2ST 3209 -2544 A2CT 3311 -2630 A2CB 3332 -2648 A2ACT 3352 -2666 A3ST 3367 -2679 A3SB 3403 -2711 A4CT 3459 -2761 A4CB 3463 -2764 A5ST 3506 -2803 A5CT 7042 -2876 S 21 CANRIG Ctw ron TRADING BAY UNIT M -10 • A5CB 7081 -2887 A6ST 7172 -2916 A6SB 6969 -2946 BCT 7203 -3023 BCB 7335 -3043 B1ST 7342 -3048 B1SB 7360 -3064 B2ST 7386 -3084 B2SB 7508 -3145 B1CT 7547 -3148 B1CB 7561 -3158 B3ST 7598 -3163 B3SB 7615 -3265 B4ST 7632 -3269 B2CT 7683 -3346 B2CB 7632 -3358 B3CT 7663 -3361 B3CB 7668 -3387 B5ST 7682 -3391 B4CT 7784 -3462 B4CB 7800 -3470 B6AST 7707 -3498 • B6ST 7766 -3502 B6BST 7784 -3533 B5CT 7806 -3555 B5CB 8711 -3571 B7STRT 7841 -3608 B7STRB 7865 -3628 CCT 7867 -3707 CCB 7952 -3723 C1ST 7974 -3768 A5CT 8027 -2876 C2CB 4650 -3853 C3ST 4672 -3872 C3SB 4719 -3910 C4ST 4754 -3938 C4SB 4803 -3977 C3CT 4809 -3981 C3CB 4819 -3989 C5ST 4845 -4008 C5SB 4858 -4018 DCT 4938 -4077 DCB 4956 -4089 D1ST 4986 -4111 • 22 CANRIG Chevron W TRADING BAY UNIT M -10 D1SB 5326 -4318 D1CT 5361 -4336 D1CB 5430 -4370 D2ST 5441 -4375 D2SB 5582 -4434 D2CT 5825 -4506 D2CB 5956 -4528 D2ACT 5998 -4534 D2ACB 6041 -4541 D3BST 6060 -4544 D3BSB 6334 -4611 D3CT 6483 -4672 D3CB 6522 -4690 D4CT 6695 -4786 D4CB 6723 -4803 D5CT 6742 -4815 D5CB 6763 -4828 D6ST 6792 -4846 D6SB 6853 -4887 D6CT 6865 -4895 D6CB 6878 -4903 D7ST 6922 -4933 • TD 6940 -4946 Horizontal Section KOP 4043 -3308 B2CT 4085 -3345 B4ST 4136 -3390 B4CT 4211 -3463 B5ST 4252 -3500 B5CT 4313 -3556 B6AST 4370 -3608 CST 4405 -3648 CCT 4485 -3708 C1ST 4561 -3768 C1CT 4640 -3833 C3ST 4680 -3871 C4ST 4763 -3938 C3CT 4835 -3982 C5ST 4873 -4008 DCT 4980 -4081 D1ST 5044 -4114 D1SB 5546 -4317 D1CT 5617 -4334 • 23 CANRIG Chevron TRADING BAY UNIT M -10 • D1CB 5758 -4370 7 " CSG 5778 -4374 D2PAY 5789 -4376 CSG PT 5800 -4378 24 CANRIG Ch vcn TRADING BAY UNIT M -10 0 3.4. ZONE SUMMARIES Coal: 530' MD, -370' SSTVD Drill Rate (ft/hr Total Gas (units Maximum Minimum Average Maximum Minimum Average 181.3 30.4 89.6 4.0 0 1.7 Peaks Depth TG C1 C2 C3 C4I C4N C51 C5N 521' 4 759 - - - - - - No samples collected until 1400' SZOCT: 801' MD, -640' SSTVD Drill Rate (ft/hr) Total Gas (units) Maximum Minimum Average Maximum Minimum Average 192.5 65.8 148.1 6 6 5.9 Peaks Depth TG C1 C2 C3 C41 C4N C5I C5N 801' 6 1140 - - - - - No samples collected until 1400'. • SZ1 CT: 864' MD, -702' SSTVD Drill Rate (ft/hr Total Gas (units Maximum Minimum Average Maximum Minimum Average 118.6 28.6 63.8 42 23 39.8 Peaks Depth TG C1 C2 C3 C41 C4N C5I C5N 868' 42 8332 - - - - - - No samples collected until 1400' SZ2CT 951' MD, -788' SSTVD Drill Rate (ft/hr Total Gas (units Maximum Minimum Average Maximum Minimum Average 79.4 38.8 76.6 7 4 7.3 Peaks Depth TG C1 C2 C3 C41 C4N C5I C5N 951' 79.4 1525 - - - - - - No samples collected until 1400'. • 25 CANRIG Chevron IWO TRADING BAY UNIT M -10 • SZ3CT: 994' MD, -830' SSTVD Drill Rate (ft/hr Total Gas (units Maximum Minimum Average Maximum Minimum Average 164.4 43.1 86.8 43 23 36.4 Peaks Depth TG C1 C2 C3 C4I C4N C51 C5N 997' 164.4 8677 - - - - - - No samples collected until 1400' SZ4CT: 1053' MD, -888' SSTVD Drill Rate (ft/hr Total Gas (units Maximum Minimum Average Maximum Minimum Average 188.9 35.7 112.0 32 15 23.0 Peaks Depth TG C1 C2 C3 C4I C4N C5I C5N 1068' 188.9 6435 No samples collected until 1400'. SZ5ST: 1091' MD, -925' SSTVD • Drill Rate (ft/hr) Total Gas (units Maximum Minimum Average Maximum Minimum Average 272.4 25.0 193.5 35 7 24.5 Peaks Depth TG C1 C2 C3 C41 C4N C5I C5N 1111' 35 6906 - - - - - - No samples collected until 1400' SZ5CT: 1133' MD, -965' SSTVD Drill Rate (ft/hr Total Gas (units Maximum Minimum Average Maximum Minimum Average 141.4 66.8 123.8 8 7 8 Peaks Depth TG C1 C2 C3 C41 C4N C5I C5N 1139' 8 1724 - - - - - - No samples collected until 1400'. • 26 CANRIG Chev on TRADING BAY UNIT M -10 • SZ6 ST: 1149' MD, -980' SSTVD Drill Rate ( ft/hr Total Gas (units Maximum Minimum Average Maximum Minimum Average 341.1 57.2 216.6 50 8 29.3 Peaks Depth TG C1 C2 C3 C4I C4N C51 C5N 1185' 50 9948 - - - - - - No samples collected until 1400'. SZ6CT 1236' MD, -1062' SSTVD Drill Rate (ft/hr) Total Gas (units Maximum Minimum Average Maximum Minimum Average 158.6 52.3 106.5 18 7 14.5 Peaks Depth TG C1 C2 C3 C41 C4N C5I C5N 1251' 52.3 3081 - - - - - No samples collected until 1400' SZ7CT: 1286' MD, -1109' SSTVD Drill Rate ( ft/hr Total Gas (units • Maximum Minimum Average Maximum Minimum Average 154.2 64.0 124.1 44 9 32.5 Peaks Depth TG C1 C2 C3 C41 C4N C5I C5N 1293' 154.2 8273 - - - - - - No samples collected until 1400' SZ8CT: 1152' MD, -1170' SSTVD Drill Rate ( ft/hr Total Gas (units Maximum Minimum Average Maximum Minimum Average 83.0 42.8 73.5 59 36 50.6 Peaks Depth TG C1 C2 C3 C4I C4N C51 C5N 1361' 59 10936 - - - - - - No samples collected until 1400' SZ9CT: 1410' MD, -1222' SSTVD Drill Rate ( ft/hr) Total Gas (units Maximum Minimum Average Maximum Minimum Average 78.5 26.7 69.9 69 37 56.5 27 • CANRIG Che vron TRADING BAY UNIT M -10 • Peaks Depth TG C1 C2 C3 C41 C4N C5I C5N 1410' 78.5 11008 - - - - - - Carbonaceous shale (1410' - 1420') = black mottled brown; firm to hard; earthy to sub resinous luster; matte texture; hackly to sub planar fracture in carbon shale. No visible bleedings. SZ10mCT: 1446' MD, -1255' SSTVD Drill Rate (ft/hr) Total Gas (units Maximum Minimum Average Maximum Minimum Average 134.6 25.8 86.8 7 0 176 Peaks Depth TG C1 C2 C3 C41 C4N C5I C5N 1461' 7 1363 - - - - - - Sand in trace amounts only <10% SZ10CT: 1495' MD, -1299' SSTVD Drill Rate (ft/hr) Total Gas (units Maximum Minimum Average Maximum Minimum Average 239.4 134.0 208.4 42 30 41.4 Peaks Depth TG C1 C2 C3 C41 C4N C5I C5N • 1497 42 8442 - - - - - Carbonaceous shale (1485' - 1500') = overall color is black with light brown tones in cleavage planes; brittle; cuttings habit is platy along bedding plane and massive in other Directions; texture is matte; luster is greasy to waxy; lamina bedding is predominant; light brown carbonaceous material present; out gassing of shale observed. SZ11 BST: 1592' MD, -1382' SSTVD Drill Rate (ft/hr) Total Gas (units Maximum Minimum Average Maximum Minimum Average 272.7 40.9 236.8 136 20 70.4 Peaks Depth TG C1 C2 C3 C41 C4N C5I C5N 1617' 136 25257 - - - - - - Sand = translucent and milky white grains with 5% light green grains and 5% dark gray grains; grains are upper fine to lower medium in size very well sorted; sand is not consolidated; no cement is present; matrix is predominately quartz with the darker grains being carbonaceous in origin; grains are sub - rounded to sub - angular with sphericity ranging from sub - discoid to sub - prismoidal; sand is sub - mature texturally but compositionally mature; mineralogically the major component of the sand is quartz at approximately 85 %, the balance is made of 5% carbonaceous shale, 5% light green grains and 5% other; there are no secondary fossils; features or structures present; porosity and permeability estimated at fair to good in parts. III 28 CANRIG Chevron IMO TRADING BAY UNIT M -10 • SZ11CT: 1694' MD, -1466' SSTVD Drill Rate (ft/hr Total Gas (units Maximum Minimum Average Maximum Minimum Average 247.7 123.1 169.3 44 26 36.3 Peaks Depth TG C1 C2 C3 C4I C4N C51 C5N 1704' 44 8757 - - - - - - Coal = a small ten foot coal section obscured by 200 ft/hr drill rates. SZ12ST: 1730' MD, -1494' SSTVD Drill Rate (ft/hr Total Gas (units Maximum Minimum Average Maximum Minimum Average 265.1 37.2 230.2 120 9 59.9 Peaks Depth TG C1 C2 C3 C41 C4N C51 C5N 1779' 120 22280 - - - - - - Coal = a small ten foot coal section obscured by 200 ft/hr drill rates • SZ12CT: 1790' MD, -1540' SSTVD Drill Rate (ft/hr) Total Gas (units) Maximum Minimum Average Maximum Minimum Average 204.5 116.1 157.3 121 47 90.1 Peaks Depth TG C1 C2 C3 C4I C4N C5I C5N 1790' 121 22383 - - - - - - Appears as very carbonaceous shale with slight coal features. SZ13ST: 1830' MD, -1570' SSTVD Drill Rate (ft/hr) Total Gas (units Maximum Minimum Average Maximum Minimum Average 230.2 141.2 187.8 122 10 51.6 Peaks Depth TG C1 C2 C3 C41 C4N C5I C5N 1884' 122 23553 - - - - - - Carbonaceous shale = black to brownish black, lignite and carbonaceous shale; brittle; fragile; thin platy and thin irregular fracture habit; many fragments display micro thin alternating laminations of different grades of lignite. 29 CANRIG Chevron TRADING BAY UNIT M -1O ID SZ13CT: 1888' MD, -1612' SSTVD Drill Rate ( ft/hr) Total Gas (units Maximum Minimum Average Maximum Minimum Average 224.9 173.7 209.1 119 72 109.8 Peaks Depth TG C1 C2 C3 C4I C4N C5I C5N 1892' 119 21845 - - - - - - Sand /Sandstone = very light gray to light gray; clast size ranges from medium lower to fine lower; sub round; moderate some well developed sphericity; moderate some poor sorting; sub mature; non to very slightly calcareous; also some weak siliceous cementation; initially sparse silt and ash increases in silt/ash matrix increasing with depth; hydrophilic matrix; loosely attached; grain and matrix; appears as a very small bed. SZ14ST: 1908' MD, -1626' SSTVD Drill Rate ( ft/hr) Total Gas (units Maximum Minimum Average Maximum Minimum Average 272.7 200.8 239.2 234 43 149.9 Peaks Depth TG C1 C2 C3 C4I C4N C5I C5N 1952' 234 44998 - - - - - - • Sand = very light gray; clast size range medium lower to very fine upper; sub angular to sub round; moderate developed sphericity; poor sorting grading to moderate @ 1980'; impacted texture; immature nature; non to very slight silic cement; predominant unconsolidated; both grain and matrix support; grading to increased grain support with depth with general increase to medium to fine grains with depth; matrix is loosely attached and very hydrophilic in nature; composed of 80% quartz, 10% chert, 10% dark lithics; poor to fair estimated porosity and permeability; no show of oil. SZI4SCT: 1995' MD, -1686' SSTVD Drill Rate ( ft/hr Total Gas (units Maximum Minimum Average Maximum Minimum Average 245.7 136.7 188.8 117 72 102.9 Peaks Depth TG C1 C2 C3 C4I C4N C5I C5N 1990' 117 22118 - - - - - - Very small ten foot coal with poor samples with 200 ft/hr ropfh through this zone. 30 CANRIG Cherran I SO TRADING BAY UNIT M -10 III SZ15ST: 2056' MD, -1727' SSTVD Drill Rate (ft/hr) Total Gas (units Maximum Minimum Average Maximum Minimum Average 254.7 6.7 196.5 84 8 41.5 Peaks Depth TG C1 C2 C3 C4I C4N C51 C5N 2057' 84 15467 - - - - - - Sand = very Tight gray to salt and pepper; clast size range medium grains to fine upper; sub angular to sub round; moderate sphericity; moderate sorting; impacted texture; sub mature nature; non to very slight silic cement; trace dense sandstone with tuff matrix; generally unconsolidated with grain support; possible local clay matrix support in parts; all matrix is loosely attached and hydrophilic; composed of 80% quartz, 10% chert, 10% lithics; fair porosity and permeability; no oil. SZ16ST: 2087' MD, -1748' SSTVD Drill Rate (ft/hr) Total Gas (units Maximum Minimum Average Maximum Minimum Average 297.2 24.9 230.1 105 6 27.0 Peaks Depth TG C1 C2 C3 C41 C4N C5I C5N 2099' 105 20998 - - - - - - • Sand = very Tight gray to light gray; clast size ranges from coarse lower to medium lower with abundant faction medium grains; sub angular to sub round; moderate developed sphericity; moderate to poor sorting; impacted texture; sub mature nature; non to very slight silic cement; predominant unconsolidated with slight sandstone clusters; slight clay matrix loosely attached with dominant grain support; composed of 80% quartz, 10% chert, 10% argillite, greenstone and various lithic fragments; arenaceous sands becoming slightly dirty @ 2190' SZ16CT: 2305' MD, -1918' SSTVD Drill Rate (ft/hr) Total Gas (units Maximum Minimum Average Maximum Minimum Average 275.6 171.3 258.0 248 4 117.2 Peaks Depth TG C1 C2 C3 C41 C4N C5I C5N 2323' 248 48006 - - - - - - Coal /carbonaceous shale and clay = brownish black mottled black; firm; earthy to sub resinous luster; striated to micro woody textures; micro laminations of lignitic coal and very carbonaceous shale and carbonaceous clay; hackly to sub planar fracture; visible bleeding gas from larger cutting grading very carbon clays. III 31 CANRIG Chevron I WO TRADING BAY UNIT M -10 11 SZ17ST: 2361' MD, -1935' SS TVD Drill Rate (ft/hr Total Gas (units Maximum Minimum Average Maximum Minimum Average 263.0 213.1 250.2 45 24 37.7 Peaks Depth TG C1 C2 C3 C4I C4N C51 C5N 2378' 45 8827 - - - - - - Sand = very light gray to light gray; clast size ranges from coarse lower to medium lower with abundant faction medium grains; subangular to sub round; moderate developed sphericity; moderate to poor sorting; impacted texture; sub mature nature; non to very slight silic cement; predominant unconsolidated with slight sandstone clusters; some loose conglomerate; grain support with scattered loosely attached clay matrix in parts; composed of 90% quartz, 10% quartz and various lithic fragments; fair to good porosity and permeability; no show of oil. SZ17CT: 2431' MD, -2271' SSTVD Drill Rate (ft/hr Total Gas (units Maximum Minimum Average Maximum Minimum Average 252.6 210.0 271.9 111 45 78.8 Peaks Depth TG C1 C2 C3 C41 C4N C5I C5N 2439' 111 22076 58 - - - - - III Carbonaceous shale /coal = brownish black mottled black; firm; earthy to subresinous luster; hackly fracture becoming sub planar in very carbonaceous shales and clays; sub striated to matte textures; composed of very carbonaceous shale, carbonaceous clay and sub lignitic coals; visible bleeding gas from most larger carbon fragments; grading into tuffaceous siltstone SZ18CT: 2577' MD, -2083' SSTVD Drill Rate (ft/hr) Total Gas (units Maximum Minimum Average Maximum Minimum Average 242.8 50.9 198.4 120 58 92.4 Peaks Depth TG C1 C2 C3 C41 C4N C5I C5N 2597' 120 22090 - - - - - - Carbonaceous shale /coal = brownish black mottled black; firm; earthy to sub resinous lusters; hackly fracture becoming sub planar in very carbonaceous shales and clays; sub striated to matte textures; composed of very carbonaceous shale, carbonaceous clay and sublignitic coals; visible bleeding gas. • 32 CANRIG Chevron TRADING BAY UNIT M -10 • SZ19CT: 2673' MD, -2149' SSTVD Drill Rate (ft/hr) Total Gas (units Maximum Minimum Average Maximum Minimum Average 248.6 175.2 259.9 162 129 180.7 Peaks Depth TG C1 C2 C3 C41 C4N C5I C5N 2677' 162 31020 1 - - - - - Coal /carbonaceous shale and carbon clay = black mottled brownish black to light brown near contacts; generally firm; earthy to sub resinous luster; matte to sub striated textures; hackly to secondary sub planar fracture; composed of micro laminations of very carbonaceous shale and clay grading to sublignitic to lignitic coals; visible bleeding gas from coal fragments. SZ2OCT: 2762' MD, -2210' SSTVD Drill Rate (ft/hr Total Gas (units Maximum Minimum Average Maximum Minimum Average 242.1 180 222.1 412 290 357.3 Peaks Depth TG C1 C2 C3 C41 C4N C5I C5N 2762' 412 64770 8 - - - - - Coal /carbonaceous shale and carbon clay = black mottled brownish black to light brown near contacts; generally firm; earthy to sub resinous luster; matte to sub striated textures; hackly to O secondary sub planar fracture; composed of micro laminations of very carbonaceous shale and clay grading to sub lignitic to lignitic coals; visible bleeding gas from coal fragments. Continued coal and carbonaceous shale as the SZ19 sequence. ' - 2' SZ21ST: 2780' MD, 222 SS TVD Drill Rate (ft/hr Total Gas (units Maximum Minimum Average Maximum Minimum Average 290.3 19.5 210.7 327 30 157.6 Peaks Depth TG C1 C2 C3 C4I C4N C51 C5N 2836' 157.6 62534 - - - - - - Sand = pinkish gray to very Tight gray; clast size range from medium upper to fine lower; sub angular to sub round; moderate developed sphericity; moderate sorting; impacted texture; sub mature nature; non to very weak silic cement; unconsolidated with very hydrophilic clay matrix; both matrix and grain support; composed of 90% quartz, 10% chert and various minor lithics; fair some poor porosity + poor permeability; no oil indicators IP 33 CANRIG Chevron IMO TRADING BAY UNIT M -10 SZ21 CT: 2893' MD, -2733' SSTVD Drill Rate (ft/hr) Total Gas (units Maximum Minimum Average Maximum Minimum Average 269.8 248.0 272.9 359 148 312.8 Peaks Depth TG C1 C2 C3 C4I C4N C51 C5N 2908' 359 69990 88 15 - - - - Coal /carbonaceous shale and clay = brownish black mottled black; firm; earthy to sub resinous luster; y firm; Y matte texture; hackly fracture; composed of various grades of lignitic to sub lignitic to very carbonaceous shale and carbon clays; visible bleeding gas from lignitic coals. SZ22CT: 2671' MD, -2357' SSTVD Drill Rate (ft/hr Total Gas (units Maximum Minimum Average Maximum Minimum Average 266.4 169.3 243.3 178 76 139.2 Peaks Depth TG C1 C2 C3 C4I C4N C5I C5N 2990' 178 33442 - - - - - - Coal /carbonaceous shale and clay = brownish black mottled black; firm; earthy to sub resinous luster; matte texture; hackly fracture; composed of various grades of lignitic to sub lignitic to very carbonaceous shale and carbon clays; visible bleeding gas from lignitic coals. Continued coal and carbonaceous shale III as SZ21 SZ23BCT: 3126' MD, -2477' SSTVD Drill Rate (ft/hr Total Gas (units Maximum Minimum Average Maximum Minimum Average 253.5 226.2 250.6 226 94 163.7 Peaks Depth TG C1 C2 C3 C4I C4N C51 C5N 3129' 226 44153 - - - - - - Coal = black some brownish black; firm some becoming hard; resinous luster with some earthy luster matte texture; hackly fracture; composed of lignitic coal; visible bleed from most lignitic cuttings; grading to very carbonaceous shale and carbon clay; scattered tuffaceous silts and gradational tuffaceous clay from very carbonaceous clay. • 34 CANRIG ChMOn IWO TRADING BAY UNIT M -10 • ACT: 3149' MD, -2495' SSTVD Drill Rate (ft/hr Total Gas (units Maximum Minimum Average Maximum Minimum Average 228.5 204.5 242.4 277 154 260.7 Peaks Depth TG C1 C2 C3 C4I C4N C5I C5N 3153' 277 52909 1 - - - - - Coal = black some brownish black; firm some becoming hard; resinous luster with some earthy luster matte texture; hackly fracture; composed of lignitic coal; visible bleed from most lignitic cuttings; grading to very carbonaceous shale and carbon clay; scattered tuffaceous silts and gradational tuffaceous clay from very carbonaceous clay. Continuous coal and carbon shale as the sz23 coal. A1CT: 3196' MD, -2533' SSTVD Drill Rate (ft/hr) Total Gas (units Maximum Minimum Average Maximum Minimum Average 263.8 249.6 299.3 114 82 114.7 Peaks Depth TG C1 C2 C3 C41 C4N C5I C5N 3201' 114 20893 5 - - - - - Coal = black some brownish black; firm some becoming hard; resinous luster with some earthy luster matte texture; hackly fracture; composed of lignitic coal; visible bleed from most lignitic cuttings; grading to very carbonaceous shale and carbon clay; scattered tuffaceous silts and gradational tuffaceous clay from very carbonaceous clay. Continuous coal and carbon shale as the a coal. A2ST 3209' MD, -2544' SSTVD Drill Rate (ft/hr Total Gas (units Maximum Minimum Average Maximum Minimum Average 279.8 41.3 245.8 133 68 102.9 Peaks Depth TG C1 C2 C3 C41 C4N C5I C5N 3248' 133 24408 - - - - - - Sand = translucent and white and grayish black to black grains; grains are lower medium to upper medium in size; sphericity is spherical to sub- prismoidal and roundness is angular to sub - angular; sand is moderately to well sorted and unconsolidated; cement is unknown; matrix is 80% quartz and 20% coal /carbonaceous shale; sand is grain supported; texturally the sand is immature and compositionally sub - mature; no fossils, or structural materials observed; tuffaceous siltstone and tuffaceous claystone observed in the interval. 35 III CANRIG ci iiii TRADING BAY UNIT M -10 411 A2CT: 3311' MD, -2630' SSTVD Drill Rate (ft/hr) Total Gas (units Maximum Minimum Average Maximum Minimum Average 253.5 124.1 240.4 245 92 185.4 Peaks Depth TG C1 C2 C3 C4I C4N C51 C5N 3327' 245 44953 - - - - - - Coal = black with Tight brown shades present; hard but fractured with pressure; luster is greasy or earthy depending up fragment; texture is matte; coal fractures irregularly with some conchoidal fracture in more mature coals; interval varies between coal and carbonaceous shale, with coal being dominated; no out gassing of the coal observed; tuffaceous siltstone and sand also observed. A2ACT: 3352' MD, -2666' SSTVD Drill Rate (ft/hr) Total Gas (units Maximum Minimum Average Maximum Minimum Average 264.0 85.7 221.7 97 64 85.6 Peaks Depth TG C1 C2 C3 C4I C4N C51 C5N 3352' 97 5827 - - - - - - Coal = black with Tight brown shades present; hard but fractured with pressure; luster is greasy or earthy depending up fragment; texture is matte; coal fractures irregularly with some conchoidal fracture in more • mature coals; interval varies between coal and carbonaceous shale, with coal being dominated; no out gassing of the coal observed; tuffaceous siltstone and sand also observed. Continued coal and carbon shale as the a2 coal displays. A3ST: 3367' MD, -3403' SSTVD Drill Rate (ft/hr) Total Gas (units Maximum Minimum Average Maximum Minimum Average 268.3 15.1 247.6 274 72 205.1 Peaks Depth TG C1 C2 C3 C41 C4N C5I C5N 3401' 274 24305 - - - - - - Sand = translucent and white and grayish black to black grains; grains are lower medium to upper medium in size; sphericity is spherical to sub - prismoidal and roundness is angular to sub - angular; sand is moderately to well sorted and unconsolidated; cement is unknown; matrix is 80% quartz and 20% coal /carbonaceous shale; sand is grain supported; texturally the sand is immature and compositionally sub - mature; no fossils, or structural materials observed; tuffaceous siltstone and tuffaceous claystone observed in the interval. 36 • CANRIG Chevron TRADING BAY UNIT M -10 1 ! A4CT: 3459' MD, -2761' SSTVD Drill Rate (ft/hr) Total Gas (units Maximum Minimum Average Maximum Minimum Average 266.1 244.6 258.3 100 68 92.5 Peaks Depth TG C1 C2 C3 C4I C4N C51 C5N 3463' 100 8909 - - - - - - Coal /carbonaceous shale = coal is black while carbonaceous shale is black with brown earthy tones; coal is hard while carbonaceous shale fractures easily; luster is greasy or earthy; texture is matte; coal fracture conchoidal and carbonaceous shale irregularly; slight outgassing observed. A5ST: 3506' MD, -2803' SSTVD Drill Rate (ft/hr Total Gas (units Maximum Minimum Average Maximum Minimum Average 275.7 23.3 234.7 152 73 96.2 Peaks Depth TG C1 C2 C3 C4I C4N C51 C5N 3585' 152 15206 - - - - - - Sand = grains are milky white, translucent and black in color with translucent being the predominant grain color; lower medium to upper fine grained in size; sub - angular to sub - rounded and spherical to sub - discoidal sphericity; sand is well sorted and unconsolidated; cement is not present; matrix is 85% quartz, • 5% carbonaceous shale, 5% volcanics and 5% light green lithics; sand is grain supported; texturally, the sand is sub - mature; compositionally, the sand is mature; permeability and porosity are visually estimated to be good. A5CT: 3585' MD, -2876' SSTVD Drill Rate (ft/hr Total Gas (units Maximum Minimum Average Maximum Minimum Average 245.3 201.9 233.1 343 152 298.7 Peaks Depth TG C1 C2 C3 C41 C4N C5I C5N 3592' 343 32999 - - - - - - Coal = Very small eleven foot coal with poor samples with 230 ft/hr ropfh through this zone. A6ST: 3627' MD, -2916' SSTVD Drill Rate (ft/hr Total Gas (units Maximum Minimum Average Maximum Minimum Average 286.6 40.8 236.4 94 47 68.1 Peaks Depth TG C1 C2 C3 C41 C4N C5I C5N 3631' 94 11914 - - - - - - 37 CANRIG Chevron TRADING BAY UNIT M -10 411 Tuffaceous siltstone = medium gray to dark gray in color; when exposed to water, soft; poorly to very poorly indurated; tenacity is stiff; fracture is not discernable; cuttings habit is massive; luster is waxy to dull; texture is silty to gritty; siltstone is interbedded with sand; tuffaceous sandstone also present, carbonaceous shale fragments are visible and can be interpreted as thin beds; no other accessories noted. BCT; 3740' MD, -3023' SSTVD Drill Rate (ft/hr) Total Gas (units Maximum Minimum Average Maximum Minimum Average 263.6 236.1 268.1 380 99 294.0 Peaks Depth TG C1 C2 C3 C4I C4N C5I C5N 3753' 380 51135 - - - - - - Carbonaceous shale = black over all with light brown shades in cleavage planes; moderately hard to hard; moderate to well indurate; fracture is planar; cuttings habit is massive; luster is greasy to dull; shale is matte in texture; structure is laminated; no accessory minerals, fossils or structures observed; out 1 gassing observed. B1ST; 3766' MD, -3783' SSTVD Drill Rate (ft/hr) Total Gas (units Maximum Minimum Average Maximum Minimum Average 279.8 108.1 205.1 143 20 83.0 Ill Peaks Depth TG C1 C2 C3 C4I C4N C5I C5N 3779' 143 9309 - - - - - Sand = milky white, translucent and black grains; grains are upper fine to lower medium in size; sphericity is sub - discoidal to spherical with sub - angular to sub - rounded rounding; sand is moderately to well sorted; sand is entirely unconsolidated; cement is not present; matrix is quartz (90 %) and carbonaceous shale /coal (10 %); grain supported matrix; texturally the sand is sub - mature while compositionally the sand is mature, approaching very mature; grains have a frosted appearance; quartz is the dominate mineral with less than 1% Tight green lithics; there are no fossils, secondary accessories or structural features observable. B2ST; 3804' MD, -3869' SSTVD Drill Rate (ft/hr Total Gas (units Maximum Minimum Average Maximum Minimum Average 227.3 32.7 141.1 40 21 31.0 Peaks Depth TG C1 C2 C3 C4I C4N C5I C5N 3860' 40 9623 277 - - - - - Sand = milky white, translucent and black grains; grains are upper fine to lower medium in size; sphericity is sub - discoidal to spherical with sub - angular to sub - rounded rounding; sand is moderately to well sorted; sand is entirely unconsolidated; cement is not present; matrix is quartz (90 %) and carbonaceous shale /coal (10 %); grain supported matrix; texturally the sand is sub - mature while compositionally the sand is mature, approaching very mature; grains have a frosted appearance; quartz is the dominate mineral with less than 1% light green lithics; there are no fossils, secondary accessories or structural features observable. 38 • CANRIG IWO TRADING BAY UNIT M -10 • B1CT; 3872' MD, -3148' SSTVD Drill Rate (ft/hr) Total Gas (units Maximum Minimum Average Maximum Minimum Average 243.2 46.8 223.7 143 49 113.9 Peaks Depth TG C1 C2 C3 C4I C4N C51 C5N 3880' 143 37183 - - - - - - Carbonaceous shale = dark gray to grayish black with thin beds of dark yellowish brown in color; carbonaceous shale is moderately hard to hard; poor to moderate induration is exhibited; tenacity is brittle to dense; luster is vitreous; fracture is planar while the cuttings habit is massive; texture is massive; bedding structure is massive; no accessory minerals, fossils or structures noted; carbonaceous shale displayed some outgassing. B3ST; 3888' MD, -3163' SSTVD Drill Rate (ft/hr) Total Gas (units Maximum Minimum Average Maximum Minimum Average 283.5 72.4 234.1 59 12 33.2 Peaks Depth TG C1 C2 C3 C41 C4N C5I C5N 3898' 59 15437 - - - - - - Sand = overall the sand has a salt and pepper appearance with translucent and white grains offset with black and pale yellowish orange grains; grains range in size from lower coarse to upper very fine in size with the majority being upper fine to lower medium; sphericity is sub - discoidal to discoidal with sub - angular to sub- rounded roundness; sand is poorly to moderately sorted and unconsolidated; cement is not present; matrix is translucent and milky white quartz grains (95 %) and carbonaceous shale /coal (5 %); texturally the sand is immature but compositionally mature; also present are volcanic clasts which range in size from very course to medium in size; porosity and permeability are visually estimated to be good. B4ST; 4001' MD, -3269' SSTVD Drill Rate (ft/hr) Total Gas (units Maximum Minimum Average Maximum Minimum Average 116 34 83 263 43 194 Peaks Depth TG C1 C2 C3 C4I C4N C5I C5N 6889 263 24581 178 2 - - - - Sand = overall the sand has a salt and pepper appearance with translucent and white grains offset with black and pale yellowish orange grains; grains range in size from lower coarse to upper very fine in size with the majority being upper fine to lower medium; sphericity is sub - discoidal to discoidal with sub - angular to sub- rounded roundness; sand is poorly to moderately sorted and unconsolidated; cement is not present; matrix is translucent and milky white quartz grains (95 %) and carbonaceous shale /coal (5 %); texturally the sand is immature but compositionally mature; also present are volcanic clasts which range in size from very course to medium in size; porosity and permeability are visually estimated to be good. 411 39 CANRIG fMmn TRADING BAY UNIT M -10 • B2CT; 4083' MD, -3346' SSTVD Drill Rate ( ft/hr Total Gas (units Maximum Minimum Average Maximum Minimum Average 210.8 151.9 197.2 296 178 270.6 Peaks Depth TG C1 C2 C3 C4I C4N C51 C5N 4087' 296 50557 - - - - - - Carbonaceous shale = grayish black to dark gray in color; moderately hard to hard; moderate to well indurated; fracture is irregular with a few discoidal fractures observed as the carbonaceous shale grades into coal; cuttings habit is massive; luster is waxy to vitreous; texture is matte; structure is massive; segment is mostly carbonaceous shale however there is some which grades slightly into a coal with conchoidal fractures; some out gassing was observed; no accessory mineral or structures observed. B3CT; 4099' MD, -3361' SSTVD Drill Rate (ft/hr) Total Gas (units Maximum Minimum Average Maximum Minimum Average 245.0 28.3 197.1 467 196 360.6 Peaks Depth TG C1 C2 C3 C41 C4N C51 C5N 4115' 467 29069 98 - - - - - Carbonaceous shale = grayish black to dark gray in color; moderately hard to hard; moderate to well indurated; fracture is irregular with a few discoidal fractures observed as the carbonaceous shale grades into coal; cuttings habit is massive; luster is waxy to vitreous; texture is matte; structure is massive; • segment is mostly carbonaceous shale however there is some which grades slightly into a coal with conchoidal fractures; some out gassing was observed; no accessory mineral or structures observed. B5ST; 4132' MD, -3391' SSTVD Drill Rate (ft/hr) Total Gas (units Maximum Minimum Average Maximum Minimum Average 269.7 17.6 174.3 105 32 58.0 Peaks Depth TG 01 C2 C3 C4I C4N C51 C5N 4132' 105 6580 19 - - - - - Sandstone = milky white in color; grains are predominately upper medium to lower medium in size; sphericity is spherical to sub - discoidal with angular to sub - angular rounding; moderately to well sorted; moderately consolidated; cement is siliceous; matrix is quartz (90 %), carbonaceous shale (5 %) and other Iithics (10 %); sandstone is grain supported; texturally the sandstone is immature while it is compositionally mature; visually estimated porosity and permeability is good; carbonaceous shale and tuffaceous siltstone also present in the interval. 40 • CANRIG TRADING BAY UNIT M -10 • B4CT; 4209', -3462' SSTVD Drill Rate (ft/hr) Total Gas (units Maximum Minimum Average Maximum Minimum Average 226.7 196.5 230.7 305 85 261.1 Peaks Depth TG C1 C2 C3 C4I C4N C51 C5N 4214' 305 19089 13 - - - - - Very small nine foot coal with poor samples with 230 ft/hr ropfh through this zone. BEAST; 4248' MD, -3498' SSTVD Drill Rate (ft/hr) Total Gas (units Maximum Minimum Average Maximum Minimum Average 172.6 157.1 197.6 63 45 61.8 Peaks Depth TG C1 C2 C3 C41 C4N C5I C5N 4253' 63 10259 - - - - - - Sandstone = translucent and milky white grains predominate with some black grains; grains are lower medium to upper fine in size; sphericity is spherical to sub - discoidal and exhibit angular to sub - angular rounding; poorly to moderately consolidated; cement is siliceous; matrix is 95% quartz with the balance composed of carbonaceous shale and lithics; sandstone is matrix supported; sandstone is well sorted; texturally the sandstone is sub - mature but compositionally it is mature; there are also volcanics present; permeability porosity visually estimated to be fair. • B6ST; 4253' MD, -4287' SSTVD Drill Rate (ft/hr) Total Gas (units Maximum Minimum Average Maximum Minimum Average 198.2 97.7 166.4 132 63 113.4 Peaks Depth TG C1 C2 C3 C4I C4N C51 C5N 4260' 132 17397 31 - - - - - Sandstone = translucent and milky white grains predominate with some black grains; grains are lower medium to upper fine in size; sphericity is spherical to sub - discoidal and exhibit angular to sub - angular rounding; poorly to moderately consolidated; cement is siliceous; matrix is 95% quartz with the balance composed of carbonaceous shale and lithics; sandstone is matrix supported; sandstone is well sorted; texturally the sandstone is sub - mature but compositionally it is mature; there are also volcanics present; permeability porosity visually estimated to be fair. 41 CANRIG Chevron IWO TRADING BAY UNIT M -10 • B5CT; 4311' MD, -3555' SSTVD Drill Rate (ft/hr Total Gas (units Maximum Minimum Average Maximum Minimum Average 149.5 56.7 109.7 204 94 165.8 Peaks Depth TG C1 C2 C3 C4I C4N C51 C5N 4317' 204 25948 238 - - - - - Carbonaceous shale = grayish black to dark gray in color; moderately hard to hard; moderately to poorly indurated; tenacity is brittle to dense; cuttings habit is massive with an irregular fracture; texture is matte; displays a resinous luster; no discernable structure; light brown carbonaceous material also present; some out gassing present. B7STRT; 4369' MD, -3608' SSTVD Drill Rate (ft/hr) Total Gas (units Maximum Minimum Average Maximum Minimum Average 202.5 36.8 166.3 138 98 131.7 Peaks Depth TG C1 C2 C3 C4I C4N C51 C5N 4391' 138 22916 31 - - - - - Tuffaceous siltstone = medium gray to medium dark gray in color; soft to medium hard; moderately to poorly indurated; tenacity is still or brittle depending on cutting fragment; fracture is irregular; cuttings III habit is massive; earthy luster; texture is clay to gritty; no discernable structure. CCT; 4480' MD, -3707' SSTVD Drill Rate (ft/hr) Total Gas (units Maximum Minimum Average Maximum Minimum Average 118.7 27.1 87.9 236 66 170.8 Peaks Depth TG C1 C2 C3 C4I C4N C51 C5N 4495' 236 23201 98 - - - - - Carbonaceous shale /carbon clay /coal = black mottled brownish black and various hues of both; overall firm becoming brittle in carbon shale and clay; earthy luster in shales to sub resinous lusters in lignitic coals; hackly fracture in coal to sub planar fractures in carbon shale; composed of laminations of carbon shale and clay with thin beds of lignitic coals; visible bleeding gas in coal fragments; grading back into tuffaceous silt. C1ST; 4549' MD, -3768' SSTVD Drill Rate (ft/hr) Total Gas (units Maximum Minimum Average Maximum Minimum Average 119 93 120 81 57 75 Peaks Depth TG 01 C2 C3 C4I C4N C51 C5N 7670 81 13935 - - - - - - • 42 CANRIG Chevron TRADING BAY UNIT M -10 • Sand = very light gray to some salt + pepper appearance; clast size range medium lower to fine lower; sub round; moderate developed sphericity; moderate sorting; impacted to some polished textures; sub mature to some mature nature; non to very weak silic cement; dominant grain support; very slight hydrophilic clay matrix; composed of >90% quartz with minor dark lithics. • C1CT; 4624' MD, -3832' SSTVD Drill Rate (ft/hr Total Gas (units Maximum Minimum Average Maximum Minimum Average 150.8 104.7 141.0 285 35 186.8 Peaks Depth TG C1 C2 C3 C41 C4N C5I C5N 4632' 285 38430 - - - - - - Coal /carbonaceous shale and clay = black mottled brownish black; firm; earthy to sub resinous luster; matte texture; hackly to sub planar fracture; composed of very carbonaceous shale and minor carbon clay at contacts to sub lignitic coal; very slight visible bleeding gas from coals. C2CT; 4643' MD, -3847' SSTVD Drill Rate (ft/hr Total Gas (units Maximum Minimum Average Maximum Minimum Average 198.7 129.4 198.9 232 178 227.6 Peaks Depth TG C1 C2 C3 C4I C4N C51 C5N 4650' 232 15331 44 - - - - - Coal /carbonaceous shale and clay = black mottled brownish black; firm; earthy to sub resinous luster; matte texture; hackly to sub planar fracture; composed of very carbonaceous shale and minor carbon clay at contacts to sub lignitic coal; very slight visible bleeding gas from coals. 1 C3ST; 4672' MD, -4719' SSTVD Drill Rate (ft/hr) Total Gas (units Maximum Minimum Average Maximum Minimum Average 233.7 29.3 176.6 87 18 61.0 Peaks Depth TG C1 C2 C3 C4I C4N C51 C5N 4699' 87 13291 3 - - - - - Sand /sandstone = translucent and milky white grains are predominate with black to grayish black grains; grains are lower medium to upper medium in size with coarse grains also present; sphericity is spherical to sub - discoidal and the roundness is sub - rounded to sub - angular; moderately sorted; sand is unconsolidated, sandstone is friable; cement is not present in sand, in sandstone it is either volcanics or siliceous; matrix is quartz (90 %), carbonaceous material (5 %), with volcanics and green lithics composing the remainder; texturally it is sub - mature, compositionally mature; no other accessories noted; visually porosity and permeability is estimated to be poor. 43 CANRIG Chevron TRADING BAY UNIT M -10 III C4ST; 4754' MD, -3938' SSTVD Drill Rate (ft/hr) Total Gas (units Maximum Minimum Average Maximum Minimum Average 251.0 22.9 192.0 133 17 55.5 Peaks Depth TG 01 C2 C3 C41 C4N C5I C5N 4803' 133 17786 - - - - - - Sand /sandstone = translucent and milky white grains are predominate with black to grayish black grains; grains are lower medium to upper medium in size with coarse grains also present; sphericity is spherical to sub - discoidal and the roundness is sub - rounded to sub - angular; moderately sorted; sand is unconsolidated, sandstone is friable; cement is not present in sand, in sandstone it is either volcanics or siliceous; matrix is quartz (90 %), carbonaceous material (5 %), with volcanics and green lithics composing the remainder; texturally it is sub - mature, compositionally mature; no other accessories noted; visually porosity and permeability is estimated to be poor. C3CT; 4809' MD, -3981' SSTVD Drill Rate (ft/hr Total Gas (units Maximum Minimum Average Maximum Minimum Average 194.8 70.5 155.2 298 76 210.7 Peaks Depth TG 01 C2 C3 C4I C4N C5I C5N 4818' 298 25861 1381 - - - - - Carbonaceous shale /coal = medium gray to dark gray with a moderate brown undertone, coal is black; III hardness is hard to moderately hard; cuttings habit is massive; fracture is irregular; luster is resinous to waxy; texture is matte; structure is laminae; coal and carbonaceous shale interbedded, siltstone also observed bedded between coals. C5ST; 4845' MD, -4008' SSTVD Drill Rate (ft/hr T otal Gas (units Maximum Minimum Average Maximum Minimum Average 179.0 125.4 175.8 111 52 105.4 Peaks Depth TG C1 C2 C3 C41 C4N C5I C5N 4854' 111 17617 - - - - - - Sand /sandstone /tuffaceous sandstone = translucent and milky white grains; sand/ sandstone is bimodal between lower medium /upper fine and very fine grained; sphericity is spherical to sub - discoidal and roundness is rounded to sub - rounded; sandstone is friable; cement is siliceous or tuffaceous; texturally immature, compositionally mature; carbonaceous shale /coal also present. III 44 CANRIG Chevron TRADING BAY UNIT M -1O IIII DCT; 4938' MD, -4077' SSTVD Drill Rate (ft/hr) Total Gas (units Maximum Minimum Average Maximum Minimum Average 120.4 81.6 110.6 90 24 66.0 Peaks Depth TG C1 C2 C3 C4I C4N C51 C5N 4955' 90 11018 - - - - - - I Carbonaceous shale = grayish black to black with earthy undertones; moderately hard to hard; moderately to well indurated; tough tenacity; resinous to greasy luster; matte texture; laminae bedding; no accessories noted; slight out gassing noted. D1ST; 4986' MD, -4111' SSTVD Drill Rate (ft/hr Total Gas (units Maximum Minimum Average Maximum Minimum Average 262.4 3.2 144.7 65 0 22.2 Peaks Depth TG C1 C2 C3 C41 C4N C5I C5N 5147' 65 19926 - - - - - - Sand = translucent and milky white grains most abundant with black grains, creating a salt and pepper appearance; sand is bimodal, lower medium to upper medium grains account for about 40% with the balance being upper coarse grained; sphericity is spherical to sub - discoidal; rounding is angular to sub- ", angular; moderately to poorly sorted; unconsolidated sand; cement is unknown; matrix is quartz; texturally, the sand is immature; compositionally, the sand is mature; mineralogically the sand is composed of 90% quartz5 5% lithics and 5% coal /carbonaceous shale; no fossils, or accessories noted; permeability and porosity visually estimated to be good. D1CT; 5361' MD, -4336' SSTVD Drill Rate (ft/hr Total Gas (units Maximum Minimum Average Maximum Minimum Average 40.9 3.7 20.0 201 15 72.5 Peaks Depth TG C1 C2 C3 C4I C4N C51 C5N 5423' 201 19653 74 - - - - - CARBONACEOUS SHALE AND CLAY /COAL = BROWNISH BLACK MOTTLED GRAYISH BLACK TO BLACK; FIRM OCCASIONALLY HARD IN LARGER COAL FRAGMENTS; EARTHY MOTTLED SUB RESINOUS LUSTER; MATTE TEXTURE; SUB PLANAR FRACTURES IN VERY CARBONACEOUS SHALES (ALONG SHALE PARTINGS) TO HACKLY FRACTURES IN LIGNITIC COALS; COMPOSED OF HETROGENEOUS CARBON SHALE AND COAL; SLIGHT VISIBLE BLEEDING GAS FROM COAL CUTTINGS. III 45 CANRIG Clii TRADING BAY UNIT M -10 • D2ST; 5441' MD, -4375' SSTVD Drill Rate (ft/hr Total Gas (units Maximum Minimum Average Maximum Minimum Average 151.3 2.1 69.9 125 12 64.0 Peaks Depth TG C1 C2 C3 C4I C4N C51 C5N 5456' 125 18835 49 - - - - - Sand = very light gray; clast size range coarse lower to fine upper; sub round scattered angular bit impacted fragments angular; poor to moderate sorting; abundant faction is medium grains; impacted textures; sub mature nature gradational mature; appears arenaceous; scattered dense sandstone in parts; dominant grain support; appears in parts as a sub greywacke; composed of 80% quartz, 10% chert, 10% dark lithics; fair to poor(tight) porosity and permeability; nsfoc. D2CT; 5825' MD, -4506' SSTVD Drill Rate (ft/hr) Total Gas (units Maximum Minimum Average Maximum Minimum Average 96.3 11.9 68.2 422 46 249.3 Peaks Depth TG C1 C2 C3 C4I C4N C51 C5N 5841' 422 28573 127 - - - - - Carbonaceous shale /coal = black to grayish black with earthy brown laminations; friable to moderately hard in hardness; poorly to well indurated; tenacity is brittle to tough; cuttings habit is massive; texture is • matte; structure of the carbonaceous shale is laminar, alternating between more mature carbonaceous shale, almost low grade coal and earthy brown carbonaceous material; coal is hard, well indurated with a tough tenacity, massive cuttings habit, matte texture, conchoidal fracture, vitreous luster and irregular cuttings habit; outgassing observed in both carbonaceous shale and coal. D2ACT; 5998' MD, -4534' SSTVD Drill Rate (ft/hr Total Gas (units Maximum Minimum Average Maximum Minimum Average 96.3 5.5 53.0 422 11 127.4 Peaks Depth TG C1 C2 C3 C41 C4N C51 C5N 6010' 422 44540 134 - - - - - Carbonaceous shale /coal = grayish black to dark gray in color; moderately hard; moderate to poorly indurated; tenacity is brittle to dense; fracture is irregular; cuttings habit is massive; luster is resinous to greasy; texture is matte; structure is laminated; coal is black, very hard, well indurated, tough tenacity, conchoidal fracture, massive cuttings habit, vitreous luster, matte texture and massive structure; coal, carbonaceous shale and tuffaceous sandstone are interbedded towards the end of the interval; moderate outgassing displayed in the coal and carbonaceous shale. III 46 cANRIG Chevron IWO TRADING BAY UNIT M -10 II D3BST; 6060' MD, -4544' SSTVD Drill Rate (ft/hr Total Gas (units Maximum Minimum Average Maximum Minimum Average 158.4 18.9 96.1 115 46 73.1 Peaks Depth TG 01 C2 C3 C4I C4N C5I C5N 6119' 115 17436 - - - - - - Sand = translucent, milky white, black, and light green grains, overall appearance is that of salt and pepper; grain size is predominately lower medium to upper medium, however 10% of the grains are coarse; sphericity is sub - discoidal to spherical; sub - rounded to rounded grains are predominant; moderately to well sorted; sand is unconsolidated; cement is not present; matrix is quartz; texturally the sand is sub - mature; compositionally the sand is mature; quartz is the major mineral at 90% - 95% through out the interval, carbonaceous shale /coal accounts for 5% - 8% of the grains and the balance of the grains being volcanics, chert, and green lithics; no secondary features, accessories or fossils noted; porosity and permeability visually estimated to be good; no oil /gas indicators present. D3CT; 6483' MD, -4672' SSTVD Drill Rate (ft/hr) Total Gas (units Maximum Minimum Average Maximum Minimum Average 127.0 101.2 124.5 570 60 416.3 Peaks Depth TG C1 C2 C3 C4I C4N C5I C5N • 6492' 570 36346 149 40 - - - - Coal /carbonaceous shale = brownish black mottled black; firm; earthy luster mottled resinous luster in lignitic coal; matte texture; hackly fracture in Iignitic coal to sub planar fracture in carbonaceous shale and very carbonaceous claystone; composed of very carbon shale laminated with sub Iignitic to lignitic coal; slight bleeds of gas from Iignitic coal. D4CT; 6695' MD, -4786' SSTVD Drill Rate (ft/hr Total Gas (units Maximum Minimum Average Maximum Minimum Average 122.7 105.2 121.3 556 98 413.9 Peaks Depth TG 01 C2 C3 C41 C4N C5I C5N 6704' 556 29913 143 34 - - - - Coal /carbonaceous shale = brownish black mottled black; firm to some hard; resinous mottled earthy luster; matte texture; hackly to sub conchoidal fracture; composed of very carbonaceous shale mottled lignite to sub bituminous coal; visible bleeding gas from coal cuttings; grading to tuffaceous siltstone to 6750'. III 47 CANRIG Che woo TRADING BAY UNIT M -10 • D6CT; 6742' MD, -4828' SSTVD Drill Rate (ft/hr Total Gas (units Maximum Minimum Average Maximum Minimum Average 140.4 80.3 122.5 558 119 356.0 Peaks Depth TG C1 C2 C3 C4I C4N C51 C5N 6762' 558 33413 68 - - - - - Coal /carbonaceous shale = brownish black mottled black; firm to some hard; resinous mottled earthy luster; matte texture; hackly to sub - conchoidal fracture; composed of very carbonaceous shale mottled lignite to sub bituminous coal; visible bleeding gas from coal cuttings; grading to tuffaceous siltstone to 6750'. D6ST; 6792' MD, -4846' SSTVD Drill Rate (ft/hr) Total Gas (units Maximum Minimum Average Maximum Minimum Average 118.3 10.5 60.9 133 46 77.8 Peaks Depth TG C1 C2 C3 C4I C4N C5I C5N 6800' 133 15784 - - - - - - Sand /conglomerate sand = very light gray to Tight gray; clast size range pebble to very coarse upper to coarse to fine upper; angular bit impacted pebbles to sub round medium to fine grains; no abundant size faction; low to moderate sphericity; very poor sorting; polished to chip texture; sub mature nature; no • visible cement; dominant grain support with slight silt matrix = hydrophilic; composed of 90% quartz, 10% chert and minor Iithics; fair porosity and permeability; no oil indicators. D6CT; 6865' MD, -4895' SSTVD Drill Rate (ft/hr Total Gas (units Maximum Minimum Average Maximum Minimum Average 73.4 45.9 66.3 318 105 233.4 Peaks Depth TG C1 C2 C3 C41 C4N C51 C5N 6878' 318 22639 86 26 - - - - Coal /carbonaceous shale = black with brownish black laminations; firm to hard; sub conchoidal fractures to sub planar fractures in very carbon shale; matte to smooth texture; composed of Iignitic to bituminous coal with micro laminations of very carbon shale and carbon clay; visible bleeding gas from most coal cuttings. D7ST; 6922' MD, -4933' SSTVD Drill Rate (ft/hr Total Gas (units Maximum Minimum Average Maximum Minimum Average 113.7 18.9 78.6 103 66 91.3 Peaks Depth TG C1 C2 C3 C41 C4N C5I C5N 6922' 103 16273 - - - - - - • 48 CANRIG Chevron IWO TRADING BAY UNIT M -10 Sand = very light gray; clast size ranges from coarse lower to fine lower; scattered angular bit impact pebbles; sub round medium grains; moderate developed sphericity; poor sorting; mean faction medium to fine grains with moderate sorting; chipped to impacted textures; arenaceous appearance; dominant grain support; no visible matrix; composed of >90% quartz; good porosity & permeability; no oil indicators. M -10 Horizontal B2CT; 4085' MD, -3345' SSTVD Drill Rate (ft/hr _ Total Gas (units Maximum Minimum Average Maximum Minimum Average 112.2 97.5 116.4 159 127 161.3 Peaks Depth TG C1 C2 C3 C4I C4N C51 C5N 4088.' 159 24112 678 - - - - - Carbonaceous shale = dark gray to grayish black in color; moderately hard to hard; poor to well indurated with the majority being moderately indurated; tenacity is dense to brittle; cuttings habit is massive; texture is matte; resinous to greasy luster; exhibits a planar fracture; bedding is laminated to massive; as the interval progresses, carbonaceous shale is interbedded with tuffaceous siltstone with approximately 10% being tuffaceous siltstone bordering on tuffaceous sandstone; no other accessories noted. 1 B3CT; 4100' MD, -3361' SSTVD Drill Rate (ft/hr Total Gas (units Ill Maximum Minimum Average Maximum Minimum Average 114.1 103.1 110.8 163 66 133.4 Peaks Depth TG C1 C2 C3 C4I C4N C5I C5N 4109' 163 16974 930 - - - - - Carbonaceous shale = dark gray to grayish black in color; moderately hard to hard; poor to well indurated with the majority being moderately indurated; tenacity is dense to brittle; cuttings habit is massive; texture is matte; resinous to greasy luster; exhibits a planar fracture; bedding is laminated to massive; as the interval progresses, carbonaceous shale is interbedded with tuffaceous siltstone with approximately 10% being tuffaceous siltstone bordering on tuffaceous sandstone; no other accessories noted. III 49 CANRIG Chevron IWO TRADING BAY UNIT M -10 e B5ST; 4136' MD, -3395' SSTVD Drill Rate ( ft/hr) Total Gas (units Maximum Minimum Average Maximum Minimum Average 156.2 24.3 96.7 38 9 25.6 Peaks Depth TG C1 C2 C3 C4I C4N C5I C5N 4195' 38 37404 3838 - - - - - Sand /sandstone = translucent and black grains yielding an overall salt and pepper appearance; grains are lower medium to upper medium in size; sphericity is spherical to sub - discoidal; grains exhibit sub - rounded to rounded rounding; sand is well to moderately well sorted; sand is unconsolidated while the sandstone is easily friable; cement in the sandstone is siliceous; matrix 90% quartz and 10% carbonaceous shale /coal; sandstone is matrix supported; texturally the sand /sandstone is mature to sub - mature; compositionally the sand /sandstone is mature; dominate mineral is quartz (90 %) with the balance being coal /carbonaceous shale and < 1% volcanics; light green Iithics are the only accessories noted; visually the porosity and permeability is estimated to be poor; no petroleum indicators present. B4CT; 4211' MD, -3624' SSTVD Drill Rate ( ft/hr Total Gas (units Maximum Minimum Average Maximum Minimum Average 72.7 23.3 57.1 65 21 50.4 Peaks Depth TG C1 C2 C3 C41 C4N C5I C5N IIII 4217' 65 23509 - - - - - - Coal = a small six foot coal section obscured by 72.7 ft/hr drill rates. BEAST; 4253' MD, -3503' SSTVD Drill Rate ( ft/hr Total Gas (units Maximum Minimum Average Maximum Minimum Average 134.3 7.9 116.6 75 12 59.4 Peaks Depth TG C1 C2 C3 C4I C4N C51 C5N 4289' 75 12039 - - - - - - Sand /sandstone = translucent and black grains yielding an overall salt and pepper appearance; grains are lower medium to upper medium in size; sphericity is spherical to sub - discoidal; grains exhibit sub - rounded to rounded rounding; sand is well to moderately well sorted; sand is unconsolidated while the sandstone is easily friable; cement in the sandstone is siliceous; matrix 90% quartz and 10% carbonaceous shale /coal; sandstone is matrix supported; texturally the sand /sandstone is mature to sub - mature; compositionally the sand /sandstone is mature; dominate mineral is quartz (90 %) with the balance being coal /carbonaceous shale and < 1% volcanics; light green Iithics are the only accessories noted; visually the porosity and permeability is estimated to be poor; no petroleum indicators present. III 50 CANRIG n TRADING BAY UNIT M -10 i B5CT; 4313' MD, -3558' SSTVD Drill Rate (ft/hr Total Gas (units Maximum Minimum Average Maximum Minimum Average 93.7 41.3 67.4 158 37 116.8 Peaks Depth TG C1 C2 C3 C41 C4N C5I C5N 4331' 158 20687 66 - - - - - Carbonaceous shale = medium gray to dark gray with light brown shades; moderate to moderately well indurated; moderately hard to hard; cuttings habit is massive; texture is matte; fracture is planar; luster is greasy to resinous; bedding is laminar; interbedded with tuffaceous siltstone at times; no other accessory elements noted; no oil /gas indicators. B7STRT; 4372' MD, -3611' SSTVD Drill Rate (ft/hr) Total Gas (units Maximum Minimum Average Maximum Minimum Average 249.9 49.6 177.8 68 36 47.1 Peaks Depth TG 01 C2 C3 C41 C4N C51 C5N 4394' 68 14148 - - - - - - Sand = very light gray; clast size range coarse lower to fine lower; sub round; moderate developed sphericity; moderate to poor sorting; abundant faction medium grains; impact texture; sub mature nature; arenaceous; non to very weak silic cement; non to very slight clay matrix; dominant grain support; 10 composed of 90% quartz, 10% chert and various lithic fragments; fair to good porosity + permeability; no oil. CST; 4410' MD, -3645' SSTVD Drill Rate (ft/hr Total Gas (units Maximum Minimum Average Maximum Minimum Average 255.2 19.5 181.2 110 12 64.0 Peaks Depth TG C1 C2 C3 C41 C4N C51 C5N 4431' 110 20299 48 - - - - - Sand = very light gray; clast size range coarse lower to fine lower; sub round; moderate developed sphericity; moderate to poor sorting; abundant faction medium grains; impact texture; sub mature nature; arenaceous; non to very weak silic cement; non to very slight clay matrix; dominant grain support; composed of 90% quartz, 10% chert and various lithic fragments; fair to good porosity + permeability; no oil. 0 51 CANRIG Chevron OW TRADING BAY UNIT M -10 • CCT; 4486' MD, -3713' SSTVD Drill Rate (ft/hr) Total Gas (units Maximum Minimum Average Maximum Minimum Average 118.6 50.9 100.1 87 9 63.7 Peaks Depth TG C1 C2 C3 C41 C4N C5I C5N 4500' 87 13163 67 - - - - - Carbonaceous shale /coal = dark gray to grayish black with Tight brown sub -tones grading to black (coal); moderately hard to hard; moderately well indurated to well indurated; tenacity is brittle to dense; fracture is irregular planar in the carbonaceous shale and massive with some conchoidal fractures in the coal; cuttings habit is massive; texture is matte; luster is greasy to resinous; structure is laminar; carbonaceous shale and coal are interbedded; moderate outgassing observed in both coal and carbonaceous shale; no other oil or gas indicators noted. C1ST; 4561' MD, -3777' SSTVD Drill Rate (ft/hr) Total Gas (units Maximum Minimum Average Maximum Minimum Average 115.6 16.1 48.8 7 2 5.3 Peaks Depth TG C1 C2 C3 C41 C4N C5I C5N 4572' 7 1475 - - - - - -- IP Tuffaceous siltstone = medium Tight gray to light gray in color; soft; poorly to moderately indurated; tenacity is crumbly to crunchy; siltstone fractures irregularly; cuttings habit is massive; luster is dull to earth; texture is silty to gritty; structure is massive; at times the siltstone will grade to a very fine grained sandstone and in other instances a conglomerate very fine grained sandstone; no other accessories noted; no oil or gas indicators present. C2ST; 4615' MD, -3820' SSTVD Drill Rate (ft/hr) Total Gas (units Maximum Minimum Average Maximum Minimum Average 82.9 21.4 47.1 6 2 4.3 Peaks Depth TG C1 C2 C3 C41 C4N C5I C5N 4630' 6 1231 - - - - - - Tuffaceous siltstone = medium light gray to light gray in color; soft; poorly to moderately indurated; tenacity is crumbly to crunchy; siltstone fractures irregularly; cuttings habit is massive; luster is dull to earth; texture is silty to gritty; structure is massive; at times the siltstone will grade to a very fine grained sandstone and in other instances a conglomerate very fine grained sandstone; no other accessories noted; no oil or gas indicators present. 41 , 52 CANRIG Chewon TRADING BAY UNIT M -10 • C1CT; 4641' MD, -3841' SSTVD Drill Rate (ft/hr Total Gas (units Maximum Minimum Average Maximum Minimum Average 127.2 11.1 79.0 77 19 51.5 Peaks Depth TG C1 C2 C3 C4I C4N C5I C5N 4650' 77 10831 60 - - - - - Carbonaceous shale /coal = grayish black to black with light brown hues; moderately hard to hard at times easily friable; moderate to well indurated; tenacity is brittle to dense; fracture is irregular in carbonaceous shale and conchoidal in coals; cuttings habit is massive; luster is greasy to resinous; texture is matte; structure is laminated to massive; moderate out gassing observed; no other accessories or oil /gas indicators observed. C2CT; 4660' MD, -3858' SSTVD Drill Rate (ft/hr Total Gas (units Maximum Minimum Average Maximum Minimum Average 72.2 56.5 76.4 56 36 56.0 Peaks Depth TG C1 C2 C3 C4I C4N C51 C5N 4663' 57 7400 - - - - - - Carbonaceous shale /coal = grayish black to black with light brown hues; moderately hard to hard at times easily friable; moderate to well indurated; tenacity is brittle to dense; fracture is irregular in carbonaceous • shale and conchoidal in coals; cuttings habit is massive; luster is greasy to resinous; texture is matte; structure is laminated to massive; moderate out gassing OBSERVED; NO OTHER ACCESSORIES OR OIL /GAS INDICATORS OBSERVED. C3ST; 4679' MD, -3871' SSTVD Drill Rate (ft/hr Total Gas (units Maximum Minimum Average Maximum Minimum Average 68.3 6.6 37.9 16 4 9.3 Peaks Depth TG C1 C2 C3 C4I C4N C51 C5N 4681' 16 2751 - - - - - - Sand /tuffaceous sand /conglomerate sand = very Tight gray to Tight gray; clast size range coarse upper to fine upper; sub round; moderate sphericity; poor sorting; impact texture sub mature nature; non to slight silic cement; slight silt/clay matrix; scatter weak sandstone and interbedded sandy silts; grain supported; sub arenaceous; composed of 90% quartz, 10% Iithics; fair porosity and permeability; no oil. C4ST; 4777' MD, -3945' SSTVD Drill Rate (ft/hr Total Gas (units Maximum Minimum Average Maximum Minimum Average 108.4 21.9 48.8 30 5 13.6 Peaks Depth TG C1 C2 C3 C4I C4N C51 C5N 4819' 30 5842 - - - - - - • 53 CANRIG Chewon IMO TRADING BAY UNIT M -10 • SAND/TUFFACEOUS SAND /CONGLOMERATE SAND = VERY LIGHT GRAY TO LIGHT GRAY; CLAST SIZE RANGE COARSE UPPER TO FINE UPPER; SUB ROUND; MODERATE SPHERICITY; POOR SORTING; IMPACT TEXTURE SUB MATURE NATURE; NON TO SLIGHT SILIC CEMENT; SLIGHT SILT /CLAY MATRIX; SCATTER WEAK SANDSTONE AND INTERBEDDED SANDY SILTS; GRAIN SUPPORTED; SUB ARENACEOUS; COMPOSED OF 90% QUARTZ, 10% LITHICS; FAIR POROSITY AND PERMEABILITY; NO OIL. C3CT; 4837' MD, -3988' SSTVD Drill Rate (ft/hr Total Gas (units Maximum Minimum Average Maximum Minimum Average 89.2 57.5 81.3 134 23 85.8 Peaks Depth TG C1 C2 C3 C4I C4N C51 C5N 4846' 134 26393 61 - - - - - Carbon shale /coal = black mottled brownish black to dark brown; firm; earthy to resinous lusters; matte texture; sub planar to sub hackly fractures; composed of lignite to very carbonaceous shale; visible bleeding gas from most coal cuttings. C5ST; 4873' MD, -4012' SSTVD Drill Rate (ft/hr) Total Gas (units Maximum Minimum Average Maximum Minimum Average • 91 .6 32.4 70.3 45 21 40.2 Peaks Depth TG C1 C2 C3 C4I C4N C51 C5N 4885' 125 8196 4 - - - - - Tuffaceous siltstone = pinkish gray to very pale orange and various hues of both; poorly indurated; mushy; non to very slightly cohesive; slightly adhesive; earthy fracture; sub nodular habit; moderate earthy luster; ashy to silty texture; gradations of tuffaceous siltstone, tuffaceous clay, sands and detrital material; all silts and clays are very hydrophilic; poor samples with abundant mud products added to the mud for sweeps. DCT; 4980' MD, -4082' SSTVD Drill Rate (ft/hr Total Gas (units Maximum Minimum Average Maximum Minimum Average 89.2 31.3 53.8 125 32 98.0 Peaks Depth TG C1 C2 C3 C41 C4N C5I C5N 4989' 125 21544 45 - - - - - Coal /carbonaceous shale = black mottled brownish black; firm; earthy to sub resinous luster; matte texture; sub planar to sub resinous luster; composed of lignitic coal to very carbonaceous shale; visible bleeds of gas from coal fragments. • 54 CANRIG I C TRADING BAY UNIT M -10 • D1ST; 5045' MD, -4121' SSTVD Drill Rate (ft/hr Total Gas (units Maximum Minimum Average Maximum Minimum Average 184.2 2.8 96.3 38 5 18.2 Peaks Depth TG C1 C2 C3 C4I C4N C51 C5N 5169' 85 7461 - - - - - - Sand = translucent, milky white grains with black grains; upper medium to lower medium in size, some lower very course; sphericity is spherical to sub - discoidal; roundness is sub - rounded to rounded; moderate to well sorted; unconsolidated sand; cement type is unknown; matrix is quartz (95 %) and carbonaceous material (5 %); compositionally, mature; texturally, sub - mature; no oil /gas indicators noted. D1CT; 5614' MD, -4334' SSTVD Drill Rate (ft/hr) Total Gas (units Maximum Minimum Average Maximum Minimum Average 35.7 2.4 16.8 85 8 41.0 Peaks Depth TG C1 C2 C3 C4I C4N C5I C5N 5676' 85 15700 - - - - - - Carbonaceous shale /coal = brownish gray to brownish black some black; grading to Iignitic coal with depth; brittle to firm; predominant earthy luster; planar fracture along shale partings; composed of very carbon shale /clay laminated with Iignitic coal; visible bleeding gas from coals. IIIII D2Pay; 5789' MD, -4376' SSTVD Drill Rate (ft/hr) Total Gas (units Maximum Minimum Average Maximum Minimum Average 117.9 4.0 46.2 86 1 30.3 Peaks Depth TG C1 C2 C3 C4I C4N C5I C5N 5917' 86 14191 - - - - - - Sand (5830'- 5890') = very light gray; clast size medium upper to fine lower; sub round to rounded; moderate to some well developed sphericity; moderate to poor sorting; pitted texture; sub mature nature; unconsolidated; very slight to moderate silt/ash matrix; gradational; very hydrophilic; both grain and matrix support; arenaceous to ashy support; poor to fair porosity and permeability; no show of oil indicators. 55 • CANRIG c rier on TRADING BAY UNIT M -10 D2ST; 5945' MD, -4397' SSTVD Drill Rate (ft/hr Total Gas (units Maximum Minimum Average Maximum Minimum Average 147.5 14.8 90.8 107 9 67.8 Peaks Depth TG C1 C2 C3 C4I C4N C51 C5N 6069' 107 107773 461 - - - - - Sand = overall color is medium gray to light gray; lower medium to upper medium in size; sphericity is spherical to sub - discoidal; rounding is sub - angular to sub - rounded; sand is unconsolidated; cement, when present, is siliceous or volcanic in origin; matrix is quartz (95 %); well to very well sorted; texturally the sand is sub - mature; compositionally the sand is mature; mineralogy: quartz (95 %); with the balance composed of coarse grained green lithics, coarse grained chert which varies in appearance similar to smokey quartz to medium light gray; also present are pale, yellowish orange volcanics; black to moderate brown carbonaceous shale /coal, medium grained in size; and tuffaceous siltstone, which exhibits bedding planes composed of light brown carbonaceous material and <5% lower very fine grained sand; visually the porosity and permeability is estimated To be good; no oil indicators noted. D2PavL; 6200' MD, -4402' SSTVD Drill Rate (ft/hr Total Gas (units Maximum Minimum Average Maximum Minimum Average 204.8 16.3 103.1 102 8 71.1 Peaks Depth TG C1 C2 C3 C41 C4N C51 C5N 6549' 102 17968 28 - - - - - Sand = medium dark gray to medium gray in color; upper fine to lower course in grain size, most grains are upper to lower medium in size; sphericity is spherical to sub - discoidal; roundness is angular to sub - rounded; moderately well to well sorted; sand is unconsolidated; matrix is siliceous in some sandstone fragments and volcanic in others; sandstone is matrix supported; texturally sand is immature; compositionally mature; mineral is milky white and translucent quartz; also present is carbonaceous material /coal, chert, volcanics and green lithics; no other accessories noted; visual estimation of porosity and permeability is good; no oil indicators noted. • 56 CANRIG Chtwon TRADING BAY UNIT M -10 • D2PayL; 6919' MD, -4404' SSTVD Drill Rate (ft/hr Total Gas (units Maximum Minimum Average Maximum Minimum Average 133.2 8.0 104.2 104 4 61.9 Peaks Depth TG C1 C2 C3 C41 C4N C5I C5N 6939' 104 20035 71 - - - - - Sand = milky white, translucent, and black grains giving the sand an overall pepper and salt appearance; grain are lower coarse to upper medium in size grading to upper to lower medium in size as the interval progresses; sphericity is spherical to sub - discoidal; roundness is angular to sub - rounded; cement is unknown; matrix is unknown; texturally the sand is immature; compositionally the sand is sub - mature; quartz is the predominate mineral at 90 %, the balance being carbonaceous shale /coal, chert and volcanics; no other secondary features noted; porosity and permeability visually estimated to be good; no oil indicators noted. • 57 CANRIG Chevron TRADING BAY UNIT M -10 • 3.5. SAMPLING PRIOGRAM AND SAMPLE DISPATCH Set Type and Purpose Interval Frequency Distribution Chevron North America E &P, Inc A Washed and Dried 1340' — 6940' 30 ' 3800 Centerpoint Drive, Suite 100 4050' — 7550' Anchorage, AK 99503 Attn: Debra Oudean Chevron North America E &P, Inc B Washed and Dried 1340' — 6940' 30 ' 3800 Centerpoint Drive, Suite 100 4050' — 7550' Anchorage, AK 99503 Attn: Debra Oudean 411 • 58 CANRIG Ct vron NW TRAD IN G BAY UNIT M -10 • 4. DRILLING DATA 4.1. DAILY ACTIVITY SUMMARY January 7 2010: Mix new drilling mud. Hook up draw works encoder lines. Load floor with BHA and tally BHA. Pick up and make up a "clean out run" BHA. Service the top drive and service the rig. Test the rig alarm systems and test the diverter. Conduct the BOP and diverter drills. Trip out in the hole from 199' to 376' and tag fill. Displace the well to 9.0 ppg mud at 65 viscosity. Wash and ream from 376' to 462' at midnight. Maximum observed gas drilling the conductor was 31 units. January 8 2010: Clean out the conductor from 462' to 480'. Circulate and condition the mud and trip out of the hole and pick up the drilling BHA and run the same into the hole and tag fill at 464'. Test the MIND tools and start drilling formation from 480' to 1292' and taking surveys to avoid close approaches. January 9 2010: Drill and slide to 1442' and circulate out sample cuttings and condition the drilling mud. Pump out of the hole from 1442' to 302'. Lay down the BHA and stand back the drill collars. Lay down the smart iron from 219' to the surface. Prepare to run 13 3/8" casing. Run casing into the hole at midnight. Maximum gas observed running in the hole was 9 units. January 10 2010: Run 13 3/8" casing to 1407'. The hole is becoming very tight. Worked pipe to 1412' and picked up and made up the landing joint. Installed the cement lines and cemented the casing to the hole. Rigged down the cement equipment and prepared for nipple up /down the BOPE. January 11 2010: Nipple down the diverter system and nipple down the BOPE. Batch the drilling mud and clean the rig floor and service the rig. Drain the trip tank and sand traps and clean the well • bay room (J Tube flooded). Work on the plugged J Tube and wait on high winds ( >50 mph). January 12, 2010: Test BOPE and service the rig. Pick up the BHA and make up the BHA and trip in the hole to 375' and wash down to 411'. Drill out the cement plugs to 424'. Trip in the hole from 424' to 1301' and tag cement. Pressure test the casing shoe to 1500 psi and drill cement from 1301' to 1311' (23 units of gas). Drill the cement plug and landing collar to 1315'. Drill cement to 140'. Drill the shoe and ream the rat hole from 1401' to 1442' with Trip Gas of 50 units. Drill 20' of new formation to 1462'. Circulate and condition the hole and run a F.I.T. to 13.1 EMW /9.2 ppg and then break down the choke. January 13, 2010: Trip out of the hole to 90' and clean the rig floor. Monitor the well and lay down the BHA. Service the rig and pick up the new BHA from surface to 94'. Orientate the tool and load the sources. Pick up the BHA from 94' to 699'and trip in the hole to 1462' and tag. Change out the mud system from spud mud to KCL POLY and mad pass the hole from 1250' to 162' and drill the formation to 2590'. January 14, 2010: Drill formation from 2590' to 4581' with periodic high viscosity sweeps. Pull a wiper trip to the shoe (1412'). January 15, 2010: Service the rig at the shoe (wiper trip) and trip in the hole from 1363' to 2875' and fill the drill pipe and circulate and condition the hole with a maximum gas of 77 units. Trip in the hole from 2875' to 4491' and wash and ream to 4581'with Wiper Gas of 247 units. Drill formation to 5253', in which drilling was halted and the Epoch Well Services gas trap motor was replaced and continued drilling to 5503' at midnight. 59 CANRIG Cfiewon WI TRADING BAY UNIT M -10 • January 16, 2010: Drill formation to 5740' and circulate and condition the hole. Monitor the well and pull out of the hole to 1400'. Monitor the well and pull out of the hole to 309'. Lay down the jars and lay down the BHA. Pull and unload the nukes and break off the old bit and pick up the BHA and make up the new bit. Load the nukes and pick up the drill collars and HWDP. Trip in the hole from 343' to 1364' and test the MWD and fill the drill pipe. The maximum gas tripping into the shoe was 13 units. Trip in the hole to 2881' and fill the drill pipe. January 17, 2010: Fix a blocked flow line and trip into the hole from 2881' to 5631' and wash and ream from 5631' to 5740' and tag bottom. Trip gas was 356 units and resume drilling formation to 6808' (pumping sweeps as required). January 18, 2010: Drill formation to 6940' and circulate and condition the hole. Check the flow and trip out of the hole to the BHA. Lay down the BHA and stand back the HWDP in the derrick. Pull the nukes and service the Top Drive. Rig up Weatherford and pick up the BHA and pick up the 3.5" tubing stinger assembly to 921'. Rig down Weatherford and trip in the hole on 5" drill pipe to 6893' and circulate and condition the drilling mud. Trip Gas was 729 units and the rig pumps were staged up slightly with the hole packing off. The hole is unloading coal. January 19, 2010: Circulate and condition the hole with the maximum gas noted at 336 units. Test the cement lines and trip out of the hole and circulate and condition and rig up the cement lines and set cement plus (3) at 6220', 5620' and 4900'. January 20, 2010: Trip out of the hole from 3765' and clean out the cement stinger. Circulate the drill string volume with a maximum gas reading of 12 units. Trip out of the hole to the 3.5" tubing at 921' and lay down the BHA. Lay down the 3.5" tubing and rig down Weatherford and service the rig. Pick up the BHA to 112' and trip in the hole to 2500'. Fill the drill pipe with a maximum gas of 5 units. Wash and ream down from 3590' to 4440' and circulate and condition the hole with a • maximum trip gas of 67 units. Wash and ream to 4600' tagging cement stringers along the way. Samples collected washing down at 4600' exhibited 70% soft cement and 30% coal and 90% soft cement and 10% coal at 4600'. Continue to circulate and condition the hole building new mud volume. January 21, 2010: Clean out the mud system due to cement job and drill out the cement from 4600' to 4660'. Circulate and condition the hole and tag cement at 4660'. Trip out of the hole to the BHA and flow check the hole and stand back the HWDP and lay down the BHA. Service the Top Drive and clean the rig floor and pick up third party tools. Rig up Weatherford and pick up the BHA. Pick up the 3.5" tubing with the cement stinger to 921'. Trip in the hole to 3523' and wash down to 4645'. Circulate and condition the hole with Trip gas of 40 units. Test the cement lines, pump cement and trip out of the hole to 37609'. January 22, 2010: Pull out of the hole from 3760' and lay down the cement equipment. Work on the broken Kelly hose and prepare to the BOPE. Remove the wear bushing and make up the space out for the test joint. Seat the test plug, stack and purge and service the rig. Test the BOPE and lay down the test tool. January 23, 2010: Finish testing the BOPE and pick up the BHA and load the nukes. Run in the hole to 4045' and kick off the well. Trip gas was 40 units with drilling to 4438'. Circulate and condition the hole and trip out of the hole. January 24, 2010: Finish tripping out of the hole and change the bit and add a mud motor and trip to bottom with Trip Gas of 30 units and drill and slide to 4923'. January 25, 2010: Drill and slide to 5078' and short trip to 4350' with a 50k overpull at 4770'. Kelly up and pump out of the hole to 4665' and back ream from 4587' to 4556' and trip out of the hole to 60 CANRIG Chev on W TRADING BAY UNIT M -10 4066'. Service the top drive and trip in the hole from 4066' to 5014'. Wash and ream to 5098' and pump a sweep and drill to 5015'. The wiper gas was 133 units. Trip out to 110' and lay down the BHA. Orientate the tool and down load the MWD data and pick up the BHA. Make up the drill bit and pick up the directional tools. Run in the hole with the HWDP to 653' and trip in the hole to 2737'. January 26, 2010: Trip in the hole from 2737' to 5012' and wash and ream to 5105' with trip gas was 105 units and commence drilling formation to 5684'. Circulate and condition the hole and pump a sweep and trip out of the hole for a new bit. January 27, 2010: Trip out of the hole tom the BHA and flow check the well at the shoe = static. Lay down the BHA and stand back the HWDP. Download the MWD tool and service the rig. Pick up the new BHA and pick up the mud motor and service the rig. Pick up the BHA and pick up the 9.25" mill tooth bit. Orientate the tool and pick up the BHA. Make up the BHA and run in the hole to 1410'. Circulate and condition and shallow test the MWD tool. Trip in the hole to 4348' and check the flow. Circulate and condition the hole and trip in the hole to 5581' and wash and ream to 5684'. Trip gas was 527 units with excess coal cavings. Drill ahead to 5752' with a connection gas of 250 units at 5701' in coal. January 28, 2010: Drill formation to 5800' and circulate and condition the hole twice bottoms up. Trip out of the hole to 4380' with 40k over pull at 5613' and increase the mud weight from 9.2+ to 9.5 for the casing run and circulate and condition the hole and trip out of the hole to 200'. Lay down the BHA and rig up to run casing. Pick up the shoe track and load the pipe skate. January 29, 2010: Run in the hole with 7" casing to 1399'. Circulate and condition the hole with a maximum gas of 18 units. Run in the hole to 4405' and circulate and condition the hole with a maximum gas of 45 units. Run in the hole to 5789' and circulate and condition the hole with trip . gas of 248 units. Cemented the casing to the hole and pressure test the cement and chart it. Rig down the cementers and prep to nipple down. January 30, 2010: Rig down casing equipment and lay down the running tool and handle miscellaneous rig work. Clean the mud pits and pick up the test tools. Test the BOPE and lay down the test tools with continued miscellaneous rig work to prepare to drill formation. January 31, 2010: Service the Top Drive and test the IBOP and rig down the test equipment. Pick up and make up the 6.125" bit, bit sub and 3.5" drill pipe. Trip in the hole with the 3.5" drill pipe and pick up the BHA and strap. Make up new bit, bit sub and stabs. Pick up HWDP and collars. February 1, 2010: Pick up 4" HWDP and change out the elevators to 3.5" and pick up 3.5" drill pipe. Circulate and condition the hole at 2754'. Pick up 3.5" drill pipe to 4723'. Wash and ream to 4810' and tag cement at 4810'. Pressure test the casing and wash down cement to 4831'. Circulate and condition the hole to 4878' and pressure test the casing shoe. Trip in the hole to 5240' and wash and ream to 5701'. Circulate and condition the hole bottoms up twice and change out the mud system. Service the rig and trip out of the hole to 5072'. February 2, 2010: Trip out of the hole with 3.5" drill pipe to 589'. Change out the elevators to 4" and stand back the HWDP to 37'. Change out the elevators to 3.5" and lay down the drill collars. Service the top drive and make up the scrapper brush assembly. Trip in the hole on 3.5" drill pipe to 2541' and change out the elevators to 4" and trip in the hole to 3088' and change out the elevators to 3.5" and trip in the hole to 5628'. Wash and ream with slow pump rates and tag the float collar at 5701'. Rotate and reciprocate the drilling mud from 5628' to 5701'. Circulate bottoms up twice with a maximum gas recorded at 1 unit. Trip out of the hole to the BHA and lay down the BHA and break the bit and lay down the scrapper. Run a USIT log to 5397' and pick up the BHA and make up the bit and BHA. • 61 CANRIG Ghewan TRADING BAY UNIT M -10 FEBRUARY 3, 2010: Wait on tools, service the top drive and pick up the BHA. Load the nuke sources and change out the elevators to 4" and trip in the hole with the HWDP. Change out the elevators to 3.5" and trip in the hole to 1100' and shallow test the MWD tool. Trip in the hole to 2718' with 3.5" drill pipe and change out the elevators to 4" and run in the hole with 4" drill pipe to 3176'. Change out the elevators to 3.5" and trip in the hole to 5632'. Drill out the cement and float shoe and displace the hole to 5799'. Trip gas was 19 units. Drill formation to 5820' and run a F.I.T. Drill formation to 5830' and trip out of the hole to 145' and remove the nuke sources and lay down the BHA and break the bit and pick up the BHA and make up the new bit and trip in the hole. Install the nuke sources and trip to bottom with trip gas of 30 units. FEBRUARY 4, 2010: Drill formation to 6786' and circulate and condition the hole. Pump a high viscosity sweep and pull a wiper trip to 5271' (The hole was not tight) and serviced the rig at the shoe. FEBRUARY 5, 2010: Service the top drive and pick up 3.5" drill pipe and trip in the hole to 6702'. Wash and ream to 6793' with wiper gas of 12 units. Drill formation to 7520' (Total Depth) and circulate and condition the hole. Pull one stand and circulate bottoms up again. FEBRUARY 6, 2010: Circulate and condition the hole and trip out of the hole from 7365' to 5743' with a 25k over pull at 5890'. Worked the drill pipe through and it was clean. Monitor the well on the trip tank with a 2.4 bbl /hr loss. Trip in the hole to 7466' and circulate and condition the hole and wash down to 7520' and circulate bottoms up. Wiper gas was 20 units. Displace the well to completion fluids and pull out of the hole to 5743' and clean out the mud system and monitor the well with a 3.2 bbl/hr loss. Clean out the mud system and drain and flush all the mud pits. FEBRUARY 7, 2010: Change out the mud system and pump bleach and flush with caustic through out the pits, lines and rinse the shakers. Blow down all lines and clean pits #1 -4. Mix and build 6% KCL in pits #1 -4. Circulate and condition at 8 bpm and rig down the Epoch gas sensor and install • the Epoch "stand alone" gas system. 62 CANRIG • • • chevron TRADING BAY UNIT M -10 4.2. SURVEY DATA Measured Vertical Course Depth Inclination Azimuth TVD Section +NS- +EW- Length DLS (ft) (deg) (deg) (ft) (ft) (ft) (ft) (ft ) (deg/100ft) 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 416.66 0.29 167.41 416.66 -0.97 -1.03 0.23 416.66 0.07 451.71 0.35 214.07 451.71 -1.15 -1.20 0.19 35.05 0.74 469.30 0.50 182.89 469.30 -1.28 -1.33 0.16 17.59 1.54 485.89 0.72 182.15 485.89 -1.45 -1.50 0.15 16.59 1.33 504.92 0.88 166.90 504.91 -1.71 -1.76 0.18 19.03 1.39 519.90 1.05 181.80 519.89 -1.95 -2.01 0.20 14.98 1.97 554.73 1.64 163.19 554.71 -2.70 -2.80 0.33 34.83 2.11 587.08 2.27 157.51 587.04 -3.66 -3.84 0.71 32.35 2.03 617.93 2.89 154.35 617.86 -4.81 -5.11 1.28 30.85 2.06 648.67 3.45 157.77 648.56 -6.22 -6.66 1.97 30.74 1.92 684.29 4.17 161.83 684.10 -8.27 -8.88 2.78 35.62 2.16 746.47 5.63 171.67 746.05 -13.15 -14.05 3.92 62.18 2.70 799.67 6.92 173.93 798.93 -18.72 -19.82 4.64 62.18 2.47 893.58 9.39 176.07 891.88 -31.59 -33.09 5.76 53.20 2.65 988.82 11.97 172.12 985.47 -48.53 -50.63 7.65 93.91 2.81 1086.18 15.37 167.65 1080.06 -70.08 -73.24 11.80 95.24 3.65 1181.67 18.75 169.03 1171.33 -96.12 - 100.68 17.42 97.36 3.56 1274.42 21.21 168.40 1258.49 - 125.65 - 131.75 23.64 95.49 2.66 1369.70 24.15 167.76 1346.40 - 159.72 - 167.69 31.24 92.75 3.10 1486.93 27.69 165.97 1451.82 - 206.81 - 217.57 42.93 117.23 3.09 1582.12 32.44 165.78 1534.18 - 250.32 - 263.80 54.57 95.19 4.99 1676.74 36.30 168.00 1612.27 - 299.45 - 315.82 66.63 94.62 4.29 1772.04 40.19 169.64 1687.10 - 354.45 - 373.68 78.03 95.30 4.22 1865.73 43.93 170.02 1756.65 - 413.36 - 435.45 89.10 93.69 4.00 1960.35 47.36 168.61 1822.79 - 476.63 - 501.91 101.67 94.62 3.78 2056.24 47.93 166.81 1887.39 - 542.19 - 571.14 116.75 95.89 1.51 2151.78 47.27 166.90 1951.82 - 607.07 - 639.85 132.80 95.54 0.69 63 CANRIG • • • Che TRADING BAY UNIT M -10 2246.17 46.80 164.91 2016.15 - 670.12 - 706.83 149.61 94.39 1.62 Measured Vertical Course Depth Inclination Azimuth TVD Section +NS- +EW- Length DLS (ft ) (deg) (deg) (ft) (ft ) (ft ) (ft) (ft ) (deg1100ft) 2340.75 46.86 164.16 2080.86 - 732.39 - 773.32 168.01 94.58 0.58 2434.37 46.65 165.55 2145.00 - 794.12 - 839.14 185.82 93.62 1.10 2530.68 46.59 166.99 2211.15 - 858.20 - 907.13 202.44 96.31 1.09 2625.61 46.68 169.40 2276.34 - 922.27 - 974.68 216.55 94.93 1.85 2720.25 46.87 169.74 2341.16 - 986.89 - 1042.50 229.04 94.64 0.33 2815.13 46.87 167.65 2406.03 - 1051.40 - 1110.39 242.61 94.88 1.61 2909.91 44.34 163.43 2472.34 - 1113.03_ - 1175.95 259.46 94.78 4.15 3005.37 40.92 159.23 2542.58 - 1169.76 - 1237.19 280.07 95.46 4.66 3099.27 37.83 154.99 2615.17 - 1219.79 - 1292.06 303.16 93.90 4.36 3194.04 34.55 150.62 2691.66_ - 1264.38 - 1341.84 328.64 94.77 4.40 3288.77 32.15 145.80 2770.80 - 1303.23 - 1386.10 356.00 94.73 3.77 3383.49 28.25 139.33 2852.67 - 1335.52 - 1423.97 384.79 94.72 5.36 3478.24 24.59 132.80 2937.53 - 1360.43 - 1454.39 413.88 94.75 4.93 3573.16 21.07 124.23 3025.02 - 1378.14 - 1477.42 442.50 94.92 5.09 3667.96 17.59 115.43 3114.48 - 1388.95 - 1493.17 469.54 94.80 4.78 3762.71 17.86 106.18 3204.75 - 1394.32 - 1503.37 496.43 94.75 2.98 3857.53 19.28 97.96 3294.65 - 1395.33 - 1509.59 525.90 94.82 3.14 3952.38 20.49 91.71 3383.85 - 1392.38 - 1512.25 558.01 94.85 2.58 4043.19 21.63 85.04 3468.61 - 1385.77 - 1511.28 590.57 90.81 2.92 4142.25 22.30 70.56 3560.54 -1371.81_ - 1503.44 626.51 99.06 5.50 4236.84 23.60 60.22 3647.68 - 1350.86 - 1488.06 659.89 94.59 4.47 4331.65 24.95 49.21 3734.15 - 1323.21 - 1465.55 691.52 94.81 4.97 4426.40 26.15 40.71 3819.66 - 1289.76 - 1436.66 720.27 94.75 4.07 4517.82 28.80 34.88 3900.78 - 1252.45 - 1403.31 746.02 91.42 4.13 4615.57 32.29 29.70 3984.97 - 1206.48 - 1361.30 772.43 97.75 4.47 4711.25 36.04 26.45 4064.13 - 1155.41 - 1313.88 797.64 95.68 4.36 4805.91 39.52 25.72 4138.93 - 1099.69 - 1261.79 823.12 94.66 3.71 4900.39 43.22 24.75 4209.82 - 1039.45 - 1205.31 849.72 94.48 3.97 4995.48 46.72 24.37 4277.09 - 974.41 - 1144.20 877.64 95.09 3.69 64 CANRIG • • • Chevron TRADING BAY UNIT M -10 Measured Vertical Course Depth Inclination Azimuth TVD Section +NS- +EW- Length DLS (ft) (deg) (deg) (ft) (ft ) (ft) (ft) (ft ) (deg /100 ft) 5090.78 49.97 24.04 4340.42 - 905.39 - 1079.26 906.83 95.30 3.42 5185.50 53.29 23.50 4399.21 - 833.27 - 1011.30 936.75 94.72 3.53 5280.29 56.77 23.80 4453.53 - 757.80 - 940.16 967.91 94.79 3.68 5375.22 59.40 23.60 4503.71 - 679.52 - 866.38 1000.29 94.93 2.78 5469.86 63.61 20.71 4548.86 - 598.24 - 789.36 1031.61 94.64 5.19 5564.63 67.63 18.60 4587.97 - 513.16 - 708.09 1060.61 94.77 4.70 5658.94 71.02 16.28 4621.27 - 425.68 - 623.92 1087.03 94.31 4.27 5755.98 74.36 15.04 4650.14 - 333.50 - 534.73 1112.02 97.04 3.65 5851.52 79.49 12.89 4671.75 - 240.70 - 444.45 1134.46 95.54 5.80 5945.04 82.21 11.06 4686.62 - 148.44 - 354.14 1153.61 93.52 3.49 6039.83 81.14 8.52 4700.35 -54.65 - 261.72 1169.56 94.79 2.88 6134.49 78.80 8.22 4716.83_ 38.51 - 169.51 1183.12 94.66 2.49 6229.47 75.01 9.78 4738.35 130.99 -78.16 1197.58 94.98 4.30 6324.39 69.72 10.38 4767.10 221.42 10.88 1213.40 94.92 5.61 6419.01 65.70 10.98 4802.98 308.94 96.89 1229.62 94.62 4.29 6513.68 60.83 10.50 4845.55 393.46 179.93 1245.38 94.67 5.16 6608.41 56.09 10.95 4895.09 474.16 259.24 1260.39 94.73 5.02 6703.46 52.76 13.05 4950.39 551.41 334.85 1276.43 95.05 3.94 6798.16 49.10 14.98 5010.07 624.74 406.17 1294.20 94.70 4.18 6880.80 46.92 15.38 5065.35 685.90 465.45 1310.28 82.64 2.66 65 CANRIG • III • c oil; No. TRADING BAY UNIT M -1O M -10 Measured Vertical Course Depth Inclination Azimuth TVD Section +NS- +EW- Length DLS (ft ) (deg) (deg) (ft) (ft) (ft) (ft) (ft ) (deg /100 ft) 0.00 0.00 0.00 0.00 0.00_ 0.00 0.00 0.00 0.00 416.66 0.29 167.41 416.66 -0.97 -1.03 0.23 416.66 0.07 451.71 0.35 214.07 451.71 -1.15 -1.20 0.19 35.05 0.74 469.30 0.50 182.89 469.30 -1.28 -1.33 0.16 17.59 1.54 485.89 0.72 182.15 485.89 -1.45 -1.50 0.15 16.59 1.33 504.92 0.88 166.90 504.91 -1.71 -1.76 0.18 19.03 1.39 519.90 1.05 181.80 519.89 -1.95 -2.01 0.20 14.98 1.97 554.73 1.64 163.19 554.71 -2.70 -2.80 0.33 34.83 2.11 587.08 2.27 157.51 587.04 -3.66 -3.84 0.71 32.35 2.03 617.93 2.89 154.35 617.86 -4.81 -5.11 1.28 30.85 2.06 648.67 3.45 157.77 648.56 -6.22 -6.66 1.97 30.74 1.92 684.29 4.17 161.83 684.10 -8.27 -8.88 2.78 35.62 2.16 746.47 5.63 171.67 746.05 -13.15 -14.05 3.92 62.18 2.70 799.67 6.92 173.93 798.93 -18.71 -19.82 4.64 53.20 2.47 893.58 9.39 176.07 891.88 -31.59 -33.09 5.76 93.91 2.65 988.82 11.97 172.12 985.47 -48.53 -50.63 7.65 95.24 2.81 1086.18 15.37 167.65 1080.06 -70.08 -73.24 11.80 97.36 3.65 1181.67 18.76 169.03 1171.33 -96.12 - 100.68 17.42 95.49 3.56 1274.42 21.21 168.40 1258.49 - 125.64 - 131.75 23.64 92.75 2.66 1369.70 24.15 167.76 1346.40 - 159.72 - 167.69 31.24 95.28 3.10 1486.93 27.69 165.97 1451.82 - 206.81 - 217.57 42.93 117.23 3.09 1582.12 32.44 165.78 1534.18 - 250.32 - 263.80 54.57 95.19 4.99 1676.74 36.30 168.00 1612.27 - 299.45 - 315.82 66.63 94.62 4.29 1772.04 40.19 169.64 1687.10 - 354.45 - 373.68 78.03 95.30 4.22 1865.73 43.93 170.02 1756.65 - 413.36 - 435.45 89.10 93.69 4.00 1960.35 47.36 168.61 1822.79 - 476.63 - 501.91 101.67 94.62 3.78 2056.24 47.93 166.81 1887.39 - 542.19 - 571.14 116.75 95.89 1.51 2151.78 47.27 166.90 1951.82 - 607.07 - 639.85 132.80 95.54 0.69 2246.17 46.80 164.91 2016.15 - 670.12 - 706.83 149.61 94.39 1.62 66 cANRIG s • • Ch, tio TRADING BAY UNIT M -1O Measured Vertical Course Depth Inclination Azimuth TVD Section +NS- +EW- Length DLS (ft ) (deg) (deg) (ft) _ (ft) (ft) (ft) (ft) (deg /100ft) 2340.75 46.86 164.16 2080.86 - 732.39 - 773.32 168.01 94.58 0.58 2434.37 46.65 165.55 2145.00 - 794.12 - 839.14 185.82 93.62 1.10 2530.68 46.59 166.99 2211.15 - 858.20 - 907.13 202.44 96.31 1.09 2625.61 46.68 169.40 2276.34 - 922.27 - 974.68 216.55 94.93 1.85 2720.25 46.87 169.74 2341.16 - 986.89 - 1042.50 229.04 94.64 0.33 2815.13 46.87 167.65 2406.03 - 1051.40_ - 1110.39 242.61 94.88 1.61 2909.91 44.34 163.43 2472.34 - 1113.03 - 1175.95 259.46 94.78 4.15 3005.37 40.92 159.23 2542.58 - 1169.76 - 1237.19 280.07 95.46 4.66 3099.27 37.83 154.99 2615.17_ - 1219.79 - 1292.06 303.16 93.90 4.36 3194.04 34.55_ 150.62 2691.66 - 1264.38 - 1341.84 328.64 94.77 4.40 3288.77 32.15 145.80 2770.80 - 1303.23 - 1386.10 356.00 94.73 3.77 3383.49 28.25 139.33 2852.67 - 1335.52 - 1423.97 384.79 94.72 5.36 3478.24 24.59 132.80 2937.53 - 1360.43 - 1454.39 413.88 94.75 4.93 3573.16 21.07 124.23 3025.02 - 1378.14 - 1477.42 442.50 94.92 5.09 3667.96 17.59 115.43 3114.48 - 1388.95 - 1493.17 469.54 94.80 4.78 3762.71 17.86 106.18 3204.75 - 1394.32 - 1503.37 496.43 94.75 2.98 3857.53 19.28 97.96 3294.65 - 1395.33 - 1509.59 525.90 94.82 3.14 3952.38 20.49 91.71 3383.85 - 1392.38 - 1512.25 558.01 94.85 2.58 4043.19 21.63 85.04 3468.61 - 1385.77 - 1511.28 590.57 90.81 2.92 4093.61 22.28 85.77 3515.37 - 1381.02 - 1509.77 609.36 50.42 1.40 4142.46 21.80 85.56 3560.65 - 1376.48 - 1508.39 627.64 48.85 1.00 4189.22 21.86 85.85 3604.06 - 1372.19 - 1507.08 644.98 46.76 0.26 4283.96 23.92 81.26 3691.34 - 1361.70 - 1502.89 681.56 94.74 2.88 4316.36 24.18 77.45 3720.93 - 1357.05 - 1500.45 694.53 32.40 4.86 4351.85 24.78 73.35 3753.23 - 1350.92_ - 1496.74 708.76 35.49 5.08 4378.78 25.39 70.23 3777.62 - 1345.53 - 1493.17 719.60 26.93 5.41 4466.93 28.16 60.55 3856.35 - 1322.91 - 1476.54 755.52 88.15 5.85 4561.20 34.58 49.83 3936.86 - 1288.17 - 1448.29 795.40 94.27 9.00 4656.10 38.00 42.10 4013.38 - 1242.70 - 1409.21 835.60 94.90 6.01 67 CANNRIG 0 • • Che TRADING BAY UNIT M -10 Measured Vertical Course Depth Inclination Azimuth TVD Section +NS- +EW- Length DLS (ft) (deg) (deg) (ft ) (ft ) (ft ) (ft) (ft) (deg /100ft) 4746.74 41.52 34.35 4083.09 - 1191.65 - 1363.66 871.29 90.64 6.70 4846.67 46.36 27.34 4155.07 - 1126.88 - 1304.13 906.63 99.93 6.86 4940.78 50.46 22.49 4217.55 - 1058.89 - 1240.30 936.17 94.11 5.81 5028.13 53.89 16.52 4271.14 - 990.90 - 1175.30 959.11 87.35 6.67 5137.70 57.65 14.79 4332.77_ - 900.76 - 1088.08 983.52 109.57 3.67 5231.85 63.94 15.24 4378.68 - 818.94 - 1008.75 1004.81 94.15 6.69 5327.23 70.37 14.10 4415.69 - 731.38 - 923.76 1027.04 95.38 6.83 5419.79 74.30 12.13 4443.78 - 643.34 - 837.88 1047.03 92.56 4.71 5515.35 75.01 12.59 4469.07 - 551.26 - 747.86 1066.75 95.56 0.88 5606.85 74.98 12.00 4492.76 - 462.95 - 661.51 1085.57 91.50 0.62 5626.07 74.86 11.76 4497.76 - 444.40 - 643.35 1089.39 19.22 1.36 5641.21 74.51 11.01 4501.75 - 429.81 - 629.03 1092.28 15.14 5.31 5681.48 74.86 11.08 4512.39 - 390.97 - 590.91 1099.72 40.27 0.89 5712.90 75.81 9.99 4520.35 - 360.58 - 561.03 1105.27 31.42 4.52 5737.83 77.28 9.25 4526.15 - 336.33 - 537.13 1109.33 24.93 6.57 5803.36 79.06 9.73 4539.58 - 272.20 - 473.87 1119.90 65.53 2.81 5898.80 83.95 7.68 4553.68 - 177.87 - 380.60 1134.17 95.44 5.55 5994.64 88.22 6.77 4560.22 -82.39 - 285.76 1146.19 95.84 4.55 6088.56 89.35 4.29 4562.21 11.22 - 192.31 1155.24 93.92 2.90 6183.94 91.13 1.63 4561.81 105.87_ -97.07 1160.16 95.38 3.36 6278.36 90.14 0.75 4560.76 199.16 -2.68 1162.12 94.42 1.40 6373.79 89.97 0.81 4560.67 293.36 92.74 1163.42 95.43 0.19 6469.57 88.97 0.33 4561.56 387.84 188.51 1164.38 95.78 1.16 6564.80 88.52 359.76 4563.64 481.61 283.72 1164.45 95.23 0.76 6660.43 88.83 359.67 4565.86 575.68 379.32 1163.98 95.63 0.34 6754.96 90.45 0.01 4566.45 668.73 473.85 1163.71 94.53 1.75 6850.90 90.82 1.49 4565.39 763.41 569.77 1164.97 95.94 1.59 6946.21 90.72 1.32 4564.10 857.64 665.04 1167.30 95.31 0.21 7042.11 91.89 2.71 4561.92 952.58 760.86 1170.67 95.90 1.89 68 CANRIG • • • chevron IWO TRADING BAY UNIT M -10 Measured Vertical Course Depth Inclination Azimuth TVD Section +NS- +EW- Length DLS (ft ) (deg) (deg) (ft) (ft) (ft) (ft) (ft) (deg /100ft ) 7137.44 91.78 2.67 4558.87 1047.09 856.03 1175.15 95.33 0.12 7232.97 91.17 3.69 4556.41 1141.91 951.38 1180.44 95.53 1.24 7328.37 90.65 3.56 4554.89 1236.71 1046.58 1186.47 95.40 0.56 7424.76 89.31 3.35 4554.93 1332.47 1142.79 1192.28 96.39 1.41 7484.09 89.49 2.99 4555.55 1391.37 1202.03 1195.56 59.33 0.68 69 CANRIG S • • C, TRADING BAY UNIT M -10 4.3. MUD RECORD Contractor: Baroid Mud Type: Spud Mud (surface to 1442') KCI GEM PMR (1442' To XXXX') 2% KCI BARADRILn (xxxx' to xxxx') DATE D H T MW VIS PV YP GELS FL FC SOLIDS OIL/WATER SAND MBT pH CI Ca 1/7/2010 465 9.10 68 18 23 9/13/14 6.2 1/- 3.2 -/96.5 - 13.0 9.50 700 100 1/8/2010 672 9.20 68 23 24 9/14/19 5.0 1/- 4.7 -/95.0 - 12.0 9.50 800 80 1/9/2010 1442 9.50 74 21 27 10/21/27 5.0 1/- 4.7 -/95.0 0.20 16.0 9.00 800 100 1/10/2010 1442 9.50 55 15 18 7/11/16 7.0 1/- 4.7 -/95.0 0.20 12.5 8.80 800 200 1/11/2010 1442 9.00 50 11 15 5/6/6 7.5 1/- 2.5 -/96.5 - - 8.00 11000 200 1/12/2010 1442 9.00 46 10 14 5/5/6 7.5 1/- 2.6 -/96.5 - - 9.00 10000 200 1/13/2010 2396 9.10 44 11 18 6/7/8 5.0 1/- 4.2 -/95.0 - - 8.5 9000 300 1/14/2010 4581 9.15 44 11 21 8/8/9 6.0 1/- 3.7 0.5/95.0 - 6.2 9.00 9000 300 1/15/2010 5412 9.15 44 13 19 6/8/9 6.0 2/- 4.6 0.5/94.0 0.10 6.2 8.50 10000 200 1/16/2010 5740 9.10 46 12 18 5/5/6 5.0 2/- 4.0 1.0/94.0 0.10 6.2 8.80 11000 200 1/17/2010 6573 9.15 43 14 16 4/5/6 5.0 2/- 4.0 1.0/94.0 0.10 6.2 8.80 11000 250 1/18/2010 6940 9.20 46 14 16 5/5/6 5.5 2/- 3.0 1.0/95.0 0.10 7.5 8.80 11000 200 1/19/2010 6940 9.35 44 12 13 4/4/5 6.0 2/- 4.0 1.0/94.0 0.10 7.5 9.40 11000 200 1/20/2010 6940 9.3 43 12 13 4/5/6 6.2 2/- 4.3 1.0/94.0 0.10 6.7 10.0 11000 200 1/21/2001 6940 9.20 44 11 15 5/5/6 6.5 2/- 4.5 0.5/94.0 0.10 6.5 11.00 11000 1200 1/22/2010 6940 9.3 56 13 15 4/4/5 5.5 2/- 4.0 0.5/94.5 0.10 6.2 9.2 11000 1000 1/23/2010 6940 9.3 48 10 15 4/4/5 7.5 1/- 4.0 1.0/94.0 0.10 6.2 11.1 11000 600 1/24/2010 6940 9.3 47 13 16 4/6/9 6.0 2/- 3.6 1.0/94.5 0.10 6.2 10.6 10000 70 CANRIG • ill II Cliii TRADING BAY UNIT M -10 PLUG BACK ORIGINAL WELL TO 4050' DATE DEPTH MW VIS PV YP GELS FL FC SOLIDS OIL/WATER SAND MBT pH CI Ca 1/25/2010 5105 9.3 47 14 15 4/8/12 5.0 2/- 3.6 1.0/94.5 0.10 7.0 10.2 10000 500 1/26/2010 5667 9.3 44 13 13 4/6/10 5.0 2/- 3.8 1.0/94.5 0.10 7.0 9.5 7000 450 1/27/2010 5701 9.2+ 46 12 12 4/5/8 5.5 2/- 3.8 1.0/94.5 0.10 7.5 9.6 7000 520 1/28/2010 5800 9.5 50 16 16 5/5/7 4.5 2/- 4.2 1.0/94.0 0.10 7.5 9.3 8000 580 1/29/2010 5800 9.6 51 16 16 5/7/8 5.0 2/- 5.3 1.0/93.0 0.10 7.5 9.4 7000 640 1/30/2010 5800 9.6 54 16 15 4/6/8 5.0 2/- 5.3 1.0/93.0 0.10 7.5 9.4 7000 640 1/31/2010 5800 8.75 36 5 8 4/4/5 7.0 1/- 1.7 0.5/97.0 - - 9.8 8000 40 2/1/2010 5800 8.80 40 7 15 6/7/8 5.0 1/- 1.6 -/97.5 0.10 - 10.10 9000 60 2/2/2010 5800 8.85 40 8 13 5/6/6 4.7 1/- 2.2 -/97.0 - - 10.50 8000 60 2/3/2010 5830 8.80 40 8 14 6/6/8 4.6 1/- 2.1 -/97.0 - - 9.40 9000 120 2/4/2010 6785 8.80 41 7 20 8/9/9 4.5 1/- 1.7 0.5/97.0 - 1.5 9.80 8000 160 2/5/2010 7520 8.85 37 6 15 6/6/7 4.0 1/- 2.2 -/97.0 - 1.5 - 8000 160 2/6/2010 7520 8.80 28 - - - - - - -/99.0 - - - 40000 - 2/7/2010 7520 8.80 28 - - - - - -/99.0 - - - 40000 - 71 CANRip • S • Chevron OW TRADING BAY UNIT M -10 BIT RECORD BIT NO SIZE " M E K T S/N JETS /TFA IN OUT FEET HOURS AVE WOB CONDITION 1 17.5 HC GTX -C1 6058303 3x18, 1x14 199' 1442' 1243 9.18 138.5 14.1 2- 2- WT- S- 1- I -NO -TD 2 12.25 Smith XR +C PG4605 3 x 18 1442' 5740' 4298 43:41 185 6.3 6- 4- WT- C- X- I -CR -PR 3 9.25 Smith MDi616 JD2519 6 X 13 5740' 6940' 1200 18:53 80 6 1- 1- CT- N- X- I -ER -TD 4 9.25 Smith MDi616 JD2519 6 X 13 4ST 4438' 1594' 19:39 107 7.5 1- 1- CT- N- X- I -ER -TD 5 9.25 Smith FDS+ PP1397 3 x 18 4438' 5105' 667' 17:55 52 19 4- 3- WT- C1- 3- 2 -ER -PR 4RR 9.25 Smith MDI616 JD2519 6X14 5105' 5684' 579 16:35 86 6.6 5- 4- CT- N- X- 1 -HC -PR 5RR 9.25 Smith FDS+ PP1397 3X18 5684' 5800' 116 6:49 18 17.3 5- 4- CT- A- 4- 2 -ER -TD 6 6.125" Smith XR+ PJ5928 1X1 5800' 5800' 0 0 0 0 2- 2- CT- C1- 1 -0 -WT -BHA 7 6.125" HC HCD505ZX 7120859 1X10, 2X12, 5800' 5830' 30' 3:43 15 12.7 1 - 1 - CT - G - X - - 2X14 8 6.125" Smith MSi61613 JD2642 6X12 5830' 7520' 1690' 29:08 94 7.5 1- 1- BT- I -N -TD 72 CANRIG Daily Report Page 1 of 1 CHEVRON DAILY WELLSITE REPORT EPOCH TBU M -10 • REPORT FOR SHANE HAUCK DATE 1/7/09 DEPTH 462.00000 PRESENT OPERATION CLEAN OUT CONDUCTOR TIME 24 HOURS YESTERDAY 199.00000 24 HOUR FOOTAGE 263' CASING INFORMATION CONDUCTOR 480' 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 1 17.5" HC GTX -C1 6058303 3X18, 1X14 SURFACE DRILLING PARAMETERS HIGH LOW AVERAGE CURRENT AVG RATE OF PENETRATION 0.0 @ 462.00000 0 @ 462.00000 0.0 FT /HR SURFACE TORQUE 0 @ 462.00000 0 @ 462.00000 0.0 AMPS WEIGHT ON BIT 0 @ 462.00000 0 @ 462.00000 0.0 KLBS ROTARY RPM 0 @ 462.00000 0 @ 462.00000 0.0 RPM PUMP PRESSURE 0 @ 462.00000 0 @ 462.00000 0.0 PSI DRILLING MUD REPORT DEPTH 199' MW 9.0 VIS 65 PV YP FL Gels CL- FC SOL SD OIL MBL pH Ca+ CCI MWD SUMMARY INTERVAL TO TOOLS GAS SUMMARY (units) HIGH LOW AVERAGE DITCH GAS 31 @ DRLG CONDUCTOR 7 @ DRLG CONDUCTOR 17 TRIP GAS - CUTTING GAS 0 @ 462.00000 0 © 462.00000 0.0 WIPER GAS - • CHROMATOGRAPHY (ppm) SURVEY - METHANE (C -1) 0 @ 462.00000 0 @ 462.00000 0.0 CONNECTION GAS HIGH 0 ETHANE (C -2) 0 © 462.00000 0 @ 462.00000 0.0 AVG 0 PROPANE (C -3) 0 @ 462.00000 0 @ 462.00000 0.0 CURRENT 0 BUTANE (C -4) 0 @ 462.00000 0 @ 462.00000 0.0 CURRENT BACKGROUND /AVG 15 PENTANE (C -5) 0 @ 462.00000 0 © 462.00000 0.0 HYDROCARBON SHOWS NO SHOWS THE LAST 24 HOURS INTERVAL LITHOLOGY /REMARKS GAS DESCRIPTION LITHOLOGY SAMPLE COLLECTION COMMENCES UNDER SURFACE CASING PRESENT LIT HOLOGY DAILY MIX NEW DRILLING MUD, HOOK UP DRAW WORKS ENCODER LINES, LOAD FLORR WITH BHA AND TALLY BHA, PICK UP AND MAKE ACTIVITY UP "CLEAN OUT RUN" BHA, SERVICE THE TOP DRIVE AND RIG, TEST RIG ALARMS, TEST DIVERTER, CONDUCT BOP AND SUMMARY DIVERTER DRILLS, TRIP IN THE HOLE FROM 199' TO 376' AND TAG, DISPLACE THE WELL TO 9.0 PPG MUD AT 65 VIS, REAM AND WASH FROM 376' TO 462' AT MIDNIGHT, MAXIMUM GAS DRILLING CONDUCTOR TO 462' WAS 31 UNITS. EPOCH PERSONNEL ON BOARD BROWNE, WINSLOW +1 SC DAILY COST $3865 DML, $1265 RW REPORT BY LEES F. BROWNE JR. III file: / /C: \Documents and Settings\Administrator \My Documents\My Wells \Chevron \201001... 1/8/2010 Daily Report Page 1 of 1 CHEVRON DAILY WELLSITE REPORT EPOCH M -10 • REPORT FOR HAUCK /HAYNES DATE Jan 08, 2010 DEPTH 1292.00000 PRESENT OPERATION DRILLING TIME 24 HOURS YESTERDAY 462.00000 24 HOUR FOOTAGE 830' CASING INFORMATION CONDUCTOR © 480' DEPTH INCLINATION AZIMUTH VERTICAL DEPTH SURVEY DATA 746.47' 5.63 171.67 746.05' BIT INFORMATION INTERVAL CONDITION REASON NO. SIZE TYPE S/N JETS IN OUT FOOTAGE HOURS T /B /C PULLED 1 17.5" HC GTX -C1 6058303 3X18, 1X14 199' 7 DRILLING PARAMETERS HIGH LOW AVERAGE CURRENT AVG RATE OF PENETRATION 361.8 @ 922.00000 15.2 @ 543.00000 142.8 110.68749 FT /HR SURFACE TORQUE 12334 @ 1103.00000 206 @ 481.00000 2312.5 0.00000 AMPS WEIGHT ON BIT 30 @ 1243.00000 0 @ 499.00000 13.5 27.10846 KLBS ROTARY RPM 70 @ 891.00000 0 @ 539.00000 24.0 - 0.00608 RPM PUMP PRESSURE 1761 @ 1266.00000 736 @ 485.00000 1271.0 1496.50488 PSI DRILLING MUD REPORT DEPTH 1000' MW 9.3 VIS 83 PV YP FL Gels CL- FC SOL SD OIL MBL pH Ca+ CCI MWD SUMMARY INTERVAL TO TOOLS GAS SUMMARY (units) HIGH LOW AVERAGE DITCH GAS 63 @ 1276.00000 0 @ 497.00000 17.3 TRIP GAS - • CUTTING GAS @ @ WIPER GAS - CHROMATOGRAPHY (ppm) SURVEY - METHANE (C -1) 11646 @ 1276.00000 6 @ 497.00000 3067.4 CONNECTION GAS HIGH 0 ETHANE (C -2) 0 @ 1292.00000 0 @ 1292.00000 0.0 AVG 0 PROPANE (C -3) 0 @ 1292.00000 0 @ 1292.00000 0.0 CURRENT 0 BUTANE (C -4) 0 © 1292.00000 0 @ 1292.00000 0.0 CURRENT BACKGROUND /AVG 15 PENTANE (C -5) 0 @ 1292.00000 0 © 1292.00000 0.0 HYDROCARBON SHOWS NO SHOWS THE LAST 24 HOURS INTERVAL LITHOLOGY /REMARKS GAS DESCRIPTI ON LITHOLOGY SAMPLES COMMENCE AT 1340' PRESENT LITHOLOGY DAILY ACTIVITY CLEAN OUT CONDUCTOR FROM 462' TO 480', CIRCULATE AND CONDITION THE MUD AND HOLE, TRIP OUT OF THE HOLE AND SUMMARY PICK UP DRILLING BHA AND RUN IN THE HOLE AND TAG FILL AT 464', TEST THE MWD TOOLS AND DRILL FORMATION FROM 480' TO 1292' TAKING SURVEYS WHEN NEEDED. EPOCH PERSONNEL ON BOARD BROWNE, WINSLOW + 1 SC DAILY COST $3865 DML, $1265 RW REPORT BY LEES F. BROWNE JR. • file: / /C: \Documents and Settings\Administrator \My Documents \My Wells \Chevron \201001... 1/9/2010 Daily Report Page 1 of 1 CHEVRON DAILY WELLSITE REPORT EPOCH M -10 • REPORT FOR HAUCKS /HAYNES DATE Jan 09, 2010 DEPTH 1442.00000 PRESENT OPERATION RUN 13 3/8" CASING TIME 24 HRS YESTERDAY 1292.00000 24 HOUR FOOTAGE 150' CASING INFORMATION CONDUCTOR @ 480' DEPTH INCLINATION AZIMUTH VERTICAL DEPTH SURVEY DATA 1442 1412' 1394.32' 25.22 166.23 1368.77' BIT INFORMATION INTERVAL CONDITION REASON NO. SIZE TYPE S/N JETS IN OUT FOOTAGE HOURS T /B /C PULLED 1 17.5" HC GTX -C1 6058303 3X18, 1X14 199' 1442' 1243' 9.18 2- 2- WT- S- 1 -I -NO TD DRILLING PARAMETERS HIGH LOW AVERAGE CURRENT AVG RATE OF PENETRATION 275.0 @ 1328.00000 26.7 @ 1421.00000 98.8 46.98573 FT /HR SURFACE TORQUE 8192 © 1327.00000 800 @ 1423.00000 1795.8 0.00000 AMPS WEIGHT ON BIT 36 © 1320.00000 1 © 1303.00000 15.4 7.31696 KLBS ROTARY RPM 72 @ 1330.00000 0 @ 1315.00000 20.7 0.01885 RPM PUMP PRESSURE 1657 @ 1317.00000 1322 @ 1423.00000 1484.7 1331.21606 PSI DRILLING MUD REPORT DEPTH 1100' MW 9.3 VIS 89 PV 24 YP 27 FL 5.0 Gels 10/19/24 CL- 900 FC 1/- SOL 4.7 SD 0.10 OIL - MBL 14.0 pH 9.0 Ca+ 200 CCI MWD SUMMARY INTERVAL TO TOOLS GAS SUMMARY (units) HIGH LOW AVERAGE ill DITCH GAS 78 © 1345.00000 9 @ 1295.00000 @ @ 49.5 TRIP GAS - CUTTING GAS WIPER GAS - CHROMATOGRAPHY (ppm) SURVEY - METHANE (C -1) 14789 © 1345.00000 1805 @ 1295.00000 8860.2 CONNECTION GAS HIGH 0 ETHANE (C -2) 0 @ 1442.00000 0 @ 1442.00000 0.0 AVG 0 PROPANE (C -3) 0 © 1442.00000 0 @ 1442.00000 0.0 CURRENT 0 BUTANE (C -4) 0 @ 1442.00000 0 @ 1442.00000 0.0 CURRENT BACKGROUND /AVG 0 PENTANE (C -5) 0 © 1442.00000 0 @ 1442.00000 0.0 HYDROCARBON SHOWS NO SHOWS THE LAST 24 HOURS INTERVAL LITHOLOGY /REMARKS GAS DESCRIPTI ON LITHOLOGY TUFFACEOUS CLAY, TUFFACEOUS SILT, SAND, CARBONACEOUS SHALE, COAL. PRESENT LITHOLOGY 1442' = 70% TUFFACEOUS CLAY, 30% TUFFACEOUS SILT DAILY DRILL AND SLIDE TO 1442', CIRCULATE OUT SAMPLES AND CONDITION THE MUD, PUMP OUT OF THE HOLE FROM 1442' TO 302', ACTIVITY LAY DOWN THE BHA AND STAND BACK THE DRILL COLLARS, LAY DOWN THE SMART IRON FROM 219' TO THE SURFACE, PREP SUMMARY TO RUN 13 3/8" CASING. RUN CASING INTO THE HOLE AT REPORT TIME, CIRCULATING EVERY FOUR JOINTS MAXIMUM GAS TRIPPING IN WAS 9 UNITS. EPOCH PERSONNEL ON BOARD BROWNE. WINSLOW = 1 SC DAILY COST $3865 DML. $1265 RW REPORT BY LEES F. BROWNE JR. Ill file: / /C: \Documents and Settings\Administrator \My Documents\My Wells \Chevron \20100... 1/10/2010 Daily Report Page 1 of 1 CHEVRON DAILY WELLSITE REPORT EPOCH M -10 1 III REPORT FOR HAUCK/HAYNES DATE Jan 10, 2010 DEPTH 1442.00000 PRESENT OPERATION NIPPLE DOWN /UP TIME 24 HRS YESTERDAY 1442.00000 24 HOUR FOOTAGE 0' CASING INFORMATION 13 3/8" @ 1412' DEPTH INCLINATION AZIMUTH VERTICAL DEPTH SURVEY DATA 1442' 1412' 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 1442' MW 9.5 VIS 74 PV 21 YP 27 FL 5.0 Gels 10/21/27 CL- 800 FC 1/- SOL 4.7 SD 0.20 OIL - MBL 16.0 pH 9.0 Ca+ 100 CCI MWD SUMMARY INTERVAL TO TOOLS GAS SUMMARY (units) HIGH LOW AVERAGE DITCH GAS 5 @ CIRC 2 @ CIRC 4 TRIP GAS 40 W/ CSG 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 NO SHOWS THE LAST 24 HOURS INTERVAL LITHOLOGY /REMARKS GAS DESCRIPTION LITHOLOGY 100% CEMENT PRESENT LITHOLOGY DAILY ACTIVITY RUN 13 3/8" CASING TO 1407', HOLE BECOMING VERY TIGHT, WORK PIPE TO 1412', PICK UP AND MAKE UP LANDING JOINT AND SUMMARY LAND, INSTALL CEMENT LINES, CEMENT THE 13 3/8" CASING TO THE HOLE, RIG DOWN CEMENT EQUIPMENT AND PREPARE FOR NIPPLE DOWN AND NIPPLE UP WORK EPOCH PERSONNEL ON BOARD BROWNE, WINSLOW DAILY COST $3425 DML, $1265 RW REPORT BY LEES F. BROWNE JR. 411 file: / /C: \Documents and Settings\Administrator \My Documents \My Wells \Chevron \20100... 1/11/2010 Daily Report Page 1 of 1 CHEVRON DAILY WELLSITE REPORT EPOCH M -10 III REPORT FOR HAUCK /HAYNES DATE Jan 11, 2010 DEPTH 1442.00000 PRESENT OPERATION TEST BOPE TIME 24 HRS YESTERDAY 1442.00000 24 HOUR FOOTAGE 0' CASING INFORMATION 13 3/8" © 1402' DEPTH INCLINATION AZIMUTH VERTICAL DEPTH SURVEY DATA 1442' 1412' 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 1442' MW 9.5 VIS 55 PV 15 YP 18 FL 7.0 Gels 7/11/16 CL- 800 FC 1/- SOL 4.7 SD 0.20 OIL - MBL 12.5 pH 8.8 Ca+ 200 CCI MIND 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 NO FLUID CIRCULATED THE LAST 24 HOURS INTERVAL LITHOLOGY /REMARKS GAS DESCRIPTION LITHOLOGY 100% CEMENT PRESENT LITHOLOGY DAILY ACTIVITY NIPPLE DOWN DIVERTER SYSTEM, NIPPLE DOWN THE BOPE, NIPPLE UP BOPE, BATCH DRILLING MUD, CLEAN THE RIG FLOOR SUMMARY AND SERVICE THE RIG, DRAIN THE TRIP TANK AND SAND TRAPS, CLEAN WELL BAY ROOM = J TUBE FLOODED, WORK ON PLUGGED J TUBE AND WAIT ON HIGH WINDS >50 MPH EPOCH PERSONNEL ON BOARD BROWNE, WINSLOW DAILY COST $3425 DML, $1265 RW REPORT BY LEES F. BROWNE JR. III file: / /C: \Documents and Settings\Administrator\My Documents \My Wells \Chevron \20100... 1/12/2010 Daily Report Page 1 of 1 CHEVRON DAILY WELLSITE REPORT EPOCH M -10 411 REPORT FOR HAYNES / LESLIE DATE Jan 12, 2010 DEPTH 1462.00000 PRESENT OPERATION F.I.T. AT 1462' TIME 24 HRS YESTERDAY 1442.00000 24 HOUR FOOTAGE 20' CASING INFORMATION 13 3/8" © 1402' DEPTH INCLINATION AZIMUTH VERTICAL DEPTH SURVEY DATA 1462' 1430' BIT INFORMATION INTERVAL CONDITION REASON NO. SIZE TYPE S/N JETS IN OUT FOOTAGE HOURS T /B /C PULLED 2 12.25" STC XR +C PG4605 3X18 1442 DRILLING PARAMETERS HIGH LOW AVERAGE CURRENT AVG RATE OF PENETRATION 113.4 @ 1449.00000 47.0 @ 1442.00000 83.6 66.51884 FT /HR SURFACE TORQUE 4475 @ 1445.00000 3488 @ 1450.00000 3891.2 3961.61353 AMPS WEIGHT ON BIT 11 @ 1445.00000 3 @ 1444.00000 6.9 4.42094 KLBS ROTARY RPM 127 @ 1455.00000 0 @ 1442.00000 120.8 120.85991 RPM PUMP PRESSURE 1410 @ 1443.00000 1074 @ 1452.00000 1288.0 1353.51086 PSI DRILLING MUD REPORT DEPTH 1442' MW 9.0 VIS 50 PV 11 YP 15 FL 7.5 Gels 5/6/6 CL- 11000 FC 1/- SOL 2.5 SD - OIL - MBL - pH 9.0 Ca+ 200 CCI MWD SUMMARY INTERVAL TO TOOLS GAS SUMMARY (units) HIGH LOW AVERAGE DITCH GAS 7 @ 1444.00000 4 @ 1459.00000 6 TRIP GAS 50 @ 1442' II CUTTING GAS @ @ WIPER GAS - CHROMATOGRAPHY (ppm) SURVEY - METHANE (C -1) 9879 @ 1442.00000 681 © 1459.00000 1589.4 CONNECTION GAS HIGH - ETHANE (C -2) 0 @ 1461.00000 0 @ 1461.00000 0.0 AVG - PROPANE (C -3) 0 @ 1461.00000 0 © 1461.00000 0.0 CURRENT - BUTANE (C -4) 0 @ 1461.00000 0 © 1461.00000 0.0 CURRENT BACKGROUND /AVG - PENTANE (C -5) 0 @ 1461.00000 0 @ 1461.00000 0.0 HYDROCARBON SHOWS NO SHOWS THE LAST 24 HOURS INTERVAL LITHOLOGY /REMARKS GAS DESCRIPTION LITHOLOGY TUFFACEOUS SILT, TUFFACEOUS CLAY, SAND, CARBONACEOUS SHALE, COAL PRESENT LITHOLOGY 1462' = 70% TUFFACEOUS CLAY, 30% TUFFACEOUS SILT TEST BOPE, SERVICE THE RIG, PICK UP BHA AND MAKE UP BHA, TRIP IN THE HOLE TO 375', WASH DOWN TO 411', DRILL OUT DAILY CEMENT PLUGS TO 424', TRIP IN THE HOLE FROM 424' TO 1301' AND TAG CEMENT, PRESSURE TEST CASING SHOE TO 1500 PSI, ACTIVITY DRILL CEMENT FROM 1301' TO 1311' (23 UNITS OF GAS), DRILL CEMENT PLUG AND LANDING COLLAR TO 1315', DRILL CEMENT TO SUMMARY 1400', DRILL SHOE AND REAM RAT HOLE FROM 1401' TO 1442' , TRIP GAS = 50 UNITS, DRILL 20' OF NEW FORMATION TO 1462', CIRCULATE AND CONDITION THE HOLE, RUN A F.I.T TO 13.1 EMW / 9.2 PPG, BREAK DOWN CHOKE. EPOCH PERSONNEL ON BOARD BROWNE, WINSLOW + 1 SC DAILY COST $3865 DML, $1265 RW REPORT BY LEES F. BROWNE JR. 411 file: / /C: \Documents and Settings\Administrator \My Documents \My Wells \Chevron \20100... 1/13/2010 Daily Report Page 1 of 1 CHEVRON DAILY WELLSITE REPORT EPOCH M -10 • REPORT FOR HAYNES /LESLIE DATE Jan 13, 2010 DEPTH 2590.00000 PRESENT OPERATION DRILLING TIME 24 HRS YESTERDAY 1462.00000 24 HOUR FOOTAGE 1128' CASING INFORMATION 13 3/8" © 1402' 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 2 12.25" STC XR +C PG4605 3X18 1442' 6 DRILLING PARAMETERS HIGH LOW AVERAGE CURRENT AVG RATE OF PENETRATION 304.7 @ 2405.00000 6.7 @ 2060.00000 219.6 232.46803 FT /HR SURFACE TORQUE 7387 @ 2236.00000 2274 @ 2063.00000 4382.4 5160.83057 AMPS WEIGHT ON BIT 10 @ 2590.00000 0 @ 2300.00000 4.9 10.77479 KLBS ROTARY RPM 168 @ 2483.00000 83 @ 2060.00000 133.0 154.82770 RPM PUMP PRESSURE 1355 @ 2589.00000 825 @ 1856.00000 1161.4 1296.44238 PSI DRILLING MUD REPORT DEPTH 1442' MW 9.0 VIS 46 PV 10 YP 14 FL 7.5 Gels 5/5/6 CL- 10000 FC 1/- SOL 2.6 SD - OIL - MBL - pH 9.0 Ca+ 200 CCI MWD SUMMARY INTERVAL TO TOOLS GAS SUMMARY (units) HIGH LOW AVERAGE DITCH GAS 248 @ 2323.00000 0 @ 1463.00000 54.1 TRIP GAS - CUTTING GAS @ @ - WIPER GAS - • CHROMATOGRAPHY (ppm) SURVEY - METHANE (C -1) 48006 @ 2323.00000 44 @ 1463.00000 10215.0 CONNECTION GAS HIGH 0 ETHANE (C -2) 0 @ 2590.00000 0 @ 2590.00000 0.0 AVG 0 PROPANE (C -3) 0 © 2590.00000 0 @ 2590.00000 0.0 CURRENT 0 BUTANE (C -4) 0 @ 2590.00000 0 @ 2590.00000 0.0 CURRENT BACKGROUND /AVG 65 PENTANE (C -5) 0 @ 2590.00000 0 @ 2590.00000 0.0 HYDROCARBON SHOWS NO SHOWS THE LAST 24 HOURS INTERVAL LITHOLOGY /REMARKS GAS DESCRIPTION LITHOLOGY TUFFACEOUS SILTSTONE, TUFFACEOUS CLAYSTONE, SAND, CONGLOMERATE, SANDSTONE, CARBON SHALE, COAL PRESENT LITHOLOGY 2590' = COAL 30 %, CARBON SHALE 50 %, TUFFACEOUS CLAY 20% DAILY TRIP OUT OF THE HOLE TO 90', CLEAN THE RIG FLOOR AND MONITOR THE WELL, LAY DOWN BHA, SERVICE THE RIG, PICK UP ACTIVITY THE NEW BHA FROM SURFACE TO 94', ORIENTATE THE TOOL AND LOAD THE SOURCES, PICK UP THE BHA FROM 94' TO 699', SUMMARY TRIP IN THE HOLE TO 1462' AND TAG, CHANGE OUT THE MUD SYSTEM FROM SPUD MUD TO KCL POLY, MAD PASS THE HOLE FROM 1250' TO 162' AND DRILL FORMATION TO 2590' EPOCH PERSONNEL ON BOARD BROWNE, WINSLOW + 2 SC DAILY COST $4265 DML, RW $1265 REPORT BY LEES F. BROWNE JR. III file: / /C: \Documents and Settings\Administrator \My Documents\My Wells \Chevron \20100... 1/14/2010 Daily Report Page 1 of 1 CHEVRON DAILY WELLSITE REPORT EPOCH • M-10 R EPORT FOR HAYNES /LESLIE DATE Jan 14, 2010 DEPTH 4580.00000 PRESENT OPERATION WIPER TRIP TO SHOE TIME 24 HRS YESTERDAY 2590.00000 24 HOUR FOOTAGE 1990' CASING INFORMATION 13 3/8" @ 1412' DEPTH INCLINATION AZIMUTH VERTICAL DEPTH 4580' 3955.11' SURVEY DATA 4517.82' 28.80 34.88 3900.78' 4331.65' 24.95 49.21 3734.15' 4142.25' 22.30 70.56 3560.54' BIT INFORMATION INTERVAL CONDITION REASON NO. SIZE TYPE S/N JETS IN OUT FOOTAGE HOURS T /B /C PULLED 2 9.25" STC XR +C PG4605 3X18 1442 18 DRILLING PARAMETERS HIGH LOW AVERAGE CURRENT AVG RATE OF PENETRATION 290.3 @ 2881.00000 8.0 @ 4032.00000 206.9 160.72147 FT /HR SURFACE TORQUE 13951 @ 4559.00000 4298 @ 2605.00000 8709.7 13072.02441 AMPS WEIGHT ON BIT 11 @ 4580.00000 0 © 3868.00000 5.7 11.07028 KLBS ROTARY RPM 168 @ 4297.00000 68 @ 4559.00000 150.3 141.94942 RPM PUMP PRESSURE 1932 @ 4325.00000 991 © 2599.00000 1510.7 1872.84680 PSI DRILLING MUD REPORT DEPTH 2396' MW 9.1 VIS 44 PV 11 YP 18 FL 5.0 Gels 6/7/8 CL- 9000 FC 1/- SOL 4.2 SD - OIL - MBL - pH 8.5 Ca+ 300 CCI MWD SUMMARY INTERVAL TO TOOLS ill GAS SUMMARY (units) HIGH LOW AVERAGE DITCH GAS 544 @ 2756.00000 12 @ 3973.00000 115.6 TRIP GAS - CUTTING GAS @ @ WIPER GAS - CHROMATOGRAPHY (ppm) SURVEY - METHANE (C -1) 98134 @ 2755.00000 2011 @ 4187.00000 17057.9 CONNECTION GAS HIGH 5 ETHANE (C -2) 288 © 4417.00000 0 © 4240.00000 5.7 AVG 1 -2 PROPANE (C -3) 0 @ 4580.00000 0 @ 4580.00000 0.0 CURRENT 1 BUTANE (C -4) 0 @ 4580.00000 0 @ 4580.00000 0.0 CURRENT BACKGROUND /AVG 0 PENTANE (C -5) 0 © 4580.00000 0 @ 4580.00000 0.0 HYDROCARBON GAS SAND SHOWS INTERVAL LITHOLOGY /REMARKS GAS DESCRIPTI ON 2825 TO 2845' SAND 80% SANDSTONE BEFORE 75 MAX 327 VLTGY, MED LWR -FINE LWR, SBRD, UNCONS, GRAIN 20% AFTER 125 SUPPORTED,GOOD POROSITY LITHOLOGY SAND, TUFFACEOUS SILT, TUFFACEOUS CLAY, COAL, CARBON SHALE & CLAY, SANDSTONE PRESENT LITHOLOGY 4580' = 80% SAND, 20% TUFFACEOUS CLAY DAILY ACTIVITY SUMMARY DRILL FORMATION FROM 2590' TO 4581' WITH PERIODIC HI -VIS SWEEPS, WIPER TRIP TO THE SHOE (1412'). EPOCH PERSONNEL ON BOARD BROWNE, WINSLOW + 2 SC DAILY COST $4265 DML, RW $1265 REPORT BY LEES F. BROWNE JR. III file: / /C: \Documents and Settings\Administrator \My Documents \My Wells \Chevron \20100... 1/15/2010 Daily Report Page 1 of 1 CHEVRON DAILY WELLSITE REPORT EPOCH M -10 • REPORT FOR HAYNES /LESLIE DATE Jan 15, 2010 DEPTH 5503.00000 PRESENT OPERATION DRILLING TIME 24 HOURS YESTERDAY 4580.00000 24 HOUR FOOTAGE 923' CASING INFORMATION 13 3/8" @ 1402' DEPTH INCLINATION AZIMUTH VERTICAL DEPTH 5185.50 53.29 23.50 4399.21 SURVEY DATA 4995.48 46.72 24.37 4277.09 4805.91 39.52 25.72 4138.93 4615.57 32.29 29.70 3984.97 BIT INFORMATION INTERVAL CONDITION REASON NO. SIZE TYPE S/N JETS IN OUT FOOTAGE HOURS T /B /C PULLED 2 9.25" STC XR +C PG4605 3X18 1442 34 DRILLING PARAMETERS HIGH LOW AVERAGE CURRENT AVG RATE OF PENETRATION 262.4 @ 5193.00000 3.2 @ 5139.00000 139.5 28.41582 FT /HR SURFACE TORQUE 18423 @ 5322.00000 9928 @ 4673.00000 13646.7 13425.54199 AMPS WEIGHT ON BIT 13 © 5230.00000 0 @ 5275.00000 7.4 9.38004 KLBS ROTARY RPM 163 © 5067.00000 100 @ 5227.00000 152.2 121.14854 RPM PUMP PRESSURE 1962 © 5252.00000 1269 @ 4673.00000 1804.1 1434.98975 PSI DRILLING MUD REPORT DEPTH 4581' MW 9.1+ VIS 44 PV 11 YP 21 FL 6.0 Gels 8/8/9 CL- 9000 FC 1/- SOL 3.7 SD - OIL 0.5 MBL 6.2 pH 9.0 Ca+ 300 CCI MWD SUMMARY INTERVAL TO TOOLS GAS SUMMARY (units) HIGH LOW AVERAGE DITCH GAS 829 (COAL) © 4892.00000 0 @ 5239.00000 65.7 TRIP GAS - CUTTING GAS @ @ WIPER GAS 247 @ 4581' CHROMATOGRAPHY (ppm) SURVEY - METHANE (C -1) 38430 @ 4632.00000 5 @ 5239.00000 7636.6 CONNECTION GAS HIGH 222 © 5434' ETHANE (C -2) 1381 @ 4815.00000 0 @ 4680.00000 17.4 AVG 1 -2 PROPANE (C -3) 0 @ 5403.00000 0 @ 5403.00000 0.0 CURRENT 222 (COAL) © 5434' BUTANE (C -4) 0 @ 5403.00000 0 @ 5403.00000 0.0 CURRENT BACKGROUND /AVG 66 PENTANE (C -5) 0 @ 5403.00000 0 @ 5403.00000 0.0 HYDROCARBON SHOWS NO GAS SHOWS THE LAST 24 HOURS INTERVAL LITHOLOGY /REMARKS GAS DESCRIPTI ON LITHOLOGY TUFFACEOUS SILT AND CLAY, TUFFACEOUS SANDSTONE, SAND, COAL, CARBON SHALE AND CLAY PRESENT LITHOLOGY 5500' = SAND 30 %, SANDSTONE 20 %, TUFFACEOUS SAND 30 %, TUFFACEOUS SILT 20% DAILY SERVICE THE RIG AT THE SHOE (WIPER TRIP), TRIP IN THE HOLE FROM 1363' TO 2875' AND FILL THE DRILL PIPE AND ACTIVITY CIRCULATE, MAXIMUM GAS WAS 77 UNITS, TRIP IN THE HOLE FROM 2875' TO 4491', WASH AND REAM TO 4581', WIPER GAS WAS SUMMARY 247 UNITS, DRILL FORMATION TO 5253', STOP DRILLING AND CHANGE OUT THE EPOCH GAS TRAP MOTOR, DRILL FORMATION TO 5503' EPOCH PERSONNEL ON BOARD BROWNE, WINSLOW + 2 SC DAILY COST $4265 DML, $1265 RW REPORT BY • file: / /C: \Documents and Settings\Administrator \My Documents \My Wells \Chevron \20100... 1/16/2010 Daily Report Page 1 of 1 CHEVRON DAILY WELLSITE REPORT EPOCH M -10 • REPORT FOR HAYNES /LESLIE DATE Jan 16, 2010 DEPTH 5740.00000 PRESENT OPERATION TRIP IN THE HOLE TO DRILL TIME 24 HOURS YESTERDAY 5503.00000 24 HOUR FOOTAGE 237' CASING INFORMATION 13 3/8" @ 1402' DEPTH INCLINATION AZIMUTH VERTICAL DEPTH 5469.86' 63.61 20.71 4548.86' SURVEY DATA 5375.22' 59.40 23.60 4503.71' 5280.29 56.77 23.80 4453.53' BIT INFORMATION INTERVAL CONDITION REASON NO. SIZE TYPE S/N JETS IN OUT FOOTAGE HOURS T /B /C PULLED 2 9.25" STC XR +C PG4605 3X18 1442 5740' 4298' 43:41 6- 4- WT- C- X -I -CR PR 3 9.25" STC MDi616 JD2519 6X13 5740' 0 DRILLING PARAMETERS HIGH LOW AVERAGE CURRENT AVG RATE OF PENETRATION 151.3 @ 5558.00000 2.1 © 5575.00000 45.1 5.55914 FT /HR SURFACE TORQUE 16507 @ 5562.00000 11570 © 5574.00000 14552.8 13571.60742 AMPS WEIGHT ON BIT 16 @ 5542.00000 0 © 5576.00000 11.6 4.66002 KLBS ROTARY RPM 175 @ 5553.00000 77 @ 5601.00000 142.1 143.67642 RPM PUMP PRESSURE 2202 @ 5740.00000 1446 @ 5573.00000 1988.4 2202.52026 PSI DRILLING MUD REPORT DEPTH 5412' MW 9.1+ VIS 44 PV 13 YP 19 FL 6.0 Gels 6/8/9 CL- 10000 FC 2/- SOL 4.6 SD 0.10 OIL 0.5 MBL 6.2 pH 8.50 Ca+ 200 CCI MWD SUMMARY INTERVAL TO TOOLS al GAS SUMMARY (units) HIGH LOW 114 @ AVERAGE DITCH GAS 5517.00000 9 @ 5597.00000 44.6 TRIP GAS - CUTTING GAS @ @ WIPER GAS - CHROMATOGRAPHY (ppm) SURVEY - METHANE (C -1) 17972 @ 5517.00000 1795 @ 5543.00000 7327.7 CONNECTION GAS HIGH 2 ETHANE (C -2) 32 © 5661.00000 2 @ 5669.00000 0.9 AVG 1 PROPANE (C -3) 0 @ 5740.00000 0 @ 5740.00000 0.0 CURRENT 0 BUTANE (C -4) 0 @ 5740.00000 0 @ 5740.00000 0.0 CURRENT BACKGROUND /AVG 0 PENTANE (C -5) 0 @ 5740.00000 0 @ 5740.00000 0.0 HYDROCARBON SHOWS NO GAS SHOWS THE LAST 24 HOURS INTERVAL LITHOLOGY /REMARKS GAS DESCRIPTI ON LITHOLOGY SAND, SANDSTONE, TUFFACEOUS SAND, TUFFACEOUS SILT, TUFFACEOUS CLAY, COAL, CARBON SHALE PRESENT LITHOLOGY 5740' = 100% TUFFACEOUS SILTSTONE DRILL FORMATION TO 5740', CIRCULATE AND CONDITION THE HOLE, MONITOR THE WELL, PULL OUT OF THE HOLE TO 1400', DAILY MONITOR HOLE, PULL OUT OF THE HOLE TO 309', LAY DOWN THE JARS, LAY DOWN THE BHA, PULL AND UNLOAD NUKES, BREAK ACTIVITY OFF THE OLD BIT, PICK UP BHA AND MAKE UP NEW BIT, LOAD NUKES, PICK UP DRILL COLLARS AND HWDP, TRIP IN THE HOLE SUMMARY FROM 343' TO 1364', TEST MWD AND FILL THE DRILL PIPE, MAXIMUM GAS TRIPPING INTO THE SHOE WAS 13 UNITS, TRIP IN THE HOLE TO 2881' AND FILL THE DRILL PIPE. EPOCH PERSONNEL ON BOARD BROWNE, WINSLOW + 2 SC DAILY COST $4265 DML, $1265 RW REPORT BY LEES F. BROWNE JR. 411 file: / /C: \DOCUMENTS AND SETTINGS\ADMINISTRATOR \MY DOCUMENTS\MY ... 1/17/2010 Daily Report Page 1 of 1 CHEVRON DAILY WELLSITE REPORT EPOCH M -10 • REPORT FOR HAYNES /LESLIE DATE Jan 17, 2010 DEPTH 6808.00000 PRESENT OPERATION DRILLING TIME 24 HOURS YESTERDAY 5740.00000 24 HOUR FOOTAGE 1068 CASING INFORMATION 13 3/8" © 1402' DEPTH INCLINATION AZIMUTH VERTICAL DEPTH SURVEY DATA 6134.49' 78.80 8.22 4716.83' BIT INFORMATION INTERVAL CONDITION REASON NO. SIZE TYPE S/N JETS IN OUT FOOTAGE HOURS T /B /C PULLED 3 9.25" STC MDi616 JD2519 6X13 5740' 15 DRILLING PARAMETERS HIGH LOW AVERAGE CURRENT AVG RATE OF PENETRATION 158.4 @ 6112.00000 5.6 © 5740.00000 83.5 49.51516 FT /HR SURFACE TORQUE 18637 @ 6802.00000 12361 @ 5861.00000 15163.7 16000.97754 AMPS WEIGHT ON BIT 13 @ 6383.00000 1 © 6096.00000 6.2 4.39708 KLBS ROTARY RPM 174 @ 6116.00000 95 @ 6273.00000 128.6 123.50940 RPM PUMP PRESSURE 2255 @ 6764.00000 1371 @ 6126.00000 2025.4 2231.44507 PSI DRILLING MUD REPORT DEPTH 5740' MW 9.1 VIS 46 PV 12 YP 18 FL 5.0 Gels 5/5/6 CL- 11000 FC 2/- SOL 4.0 SD 0.10 OIL 1.0 MBL 6.2 pH 8.8 Ca+ 200 CCI MWD SUMMARY INTERVAL TO TOOLS GAS SUMMARY (units) HIGH LOW AVERAGE DITCH GAS 570 (COAL) © 6514.00000 17 @ 5740.00000 149.6 TRIP GAS 356 @ 5740' ill CUTTING GAS @ @ WIPER GAS - CHROMATOGRAPHY (ppm) SURVEY - METHANE (C -1) 44540 @ 6010.00000 3088 @ 5800.00000 13089.6 CONNECTION GAS HIGH 10 ETHANE (C -2) 149 @ 6492.00000 0 @ 6475.00000 25.7 AVG 3 PROPANE (C -3) 40 @ 6521.00000 0 @ 6539.00000 0.9 CURRENT 2 BUTANE (C-4) 0 @ 6808.00000 0 @ 6808.00000 0.0 CURRENT BACKGROUND /AVG 77 PENTANE (C -5) 0 © 6808.00000 0 @ 6808.00000 0.0 HYDROCARBON SHOWS NO SHOWS THE LAST 24 HOURS INTERVAL LITHOLOGY /REMARKS GAS DESCRIPTION LITHOLOGY SAND, TUFFACEOUS SAND, SANDSTONE, CONGLOERMATE SAND, CONGLOMERATE, TUFFACEOUS SILT, TUFFACEOUS CLAY, COAL, CARBON SHALE PRESENT 6800' = 100% TUFFACEOUS SILTSTONE LITHOLOGY DAILY ACTIVITY FIX BLOCKED FLOW LINE, TRIP IN THE HOLE FROM 2881' TO 5631', WASH AND REAM FROM 5631' TO 5740' AND TAG BOTTOM, SUMMARY TRIP GAS WAS 356 UNITS, DRILL FORMATION TO 6808' PUMPING SWEEPS AS REQUIRED. EPOCH PERSONNEL ON BOARD BROWNE, WINSLOW + 2 SC DAILY COST $$4265 DML, $1265 RW REPORT BY LEES F. BROWNE JR. • file: / /C: \DOCUMENTS AND SETTINGS\ADMINISTRATOR \MY DOCUMENTS \MY ... 1/18/2010 Daily Report Page 1 of 1 CHEVRON DAILY WELLSITE REPORT ® EPOCH M -10 • REPORT FOR HAYNES /LESLIE DATE Jan 18, 2010 DEPTH 6940.00000 PRESENT OPERATION CIRC ON BOTTOM W/ 3.5 IBT TUBING TIME 24 HOURS YESTERDAY 6808.00000 24 HOUR FOOTAGE 132' CASING INFORMATION 13 3/8" @ 1402' DEPTH INCLINATION AZIMUTH VERTICAL DEPTH SURVEY DATA 6940.00' 46.92 15.38 5105.78' BIT INFORMATION INTERVAL CONDITION REASON NO. SIZE TYPE S/N JETS IN OUT FOOTAGE HOURS T /B /C PULLED 3 9.25" STC MDI616 JD2519 6X13 5740' 6940' 1200 18:53 1- 1- CT- N- X -I -ER TD DRILLING PARAMETERS HIGH LOW AVERAGE CURRENT AVG RATE OF PENETRATION 113.7 © 6928.00000 4.7 @ 6858.00000 51.0 73.03416 FT /HR SURFACE TORQUE 18438 @ 6857.00000 15047 @ 6877.00000 16591.1 16796.93750 AMPS WEIGHT ON BIT 10 @ 6932.00000 1 @ 6940.00000 4.9 1.67335 KLBS ROTARY RPM 155 @ 6877.00000 113 @ 6939.00000 130.1 116.41531 RPM PUMP PRESSURE 2238 © 6935.00000 1575 @ 6918.00000 2191.7 2193.57788 PSI DRILLING MUD REPORT DEPTH 6573' MW 9.1+ VIS 43 PV 14 YP 16 FL 5.0 Gels 4/5/6 CL- 11000 FC 2/- SOL 4.0 SD 0.10 OIL 1.0 MBL 6.2 pH 8.8 Ca+ 250 CCI MWD SUMMARY INTERVAL TO TOOLS GAS SUMMARY (units) HIGH LOW AVERAGE DITCH GAS 329 @ 6879.00000 46 @ 6846.00000 101.8 TRIP GAS 729 @ 6940' III CUTTING GAS @ @ WIPER GAS - CHROMATOGRAPHY (ppm) SURVEY - METHANE (C -1) 25325 @ 6903.00000 5895 @ 6833.00000 11650.1 CONNECTION GAS HIGH 43 ETHANE (C -2) 86 @ 6874.00000 1 © 6897.00000 10.6 AVG 1 -4 PROPANE (C -3) 26 @ 6878.00000 0 @ 6897.00000 2.2 CURRENT 2 BUTANE (C -4) 0 @ 6940.00000 0 @ 6940.00000 0.0 CURRENT BACKGROUND /AVG 25 CIRC @ TD PENTANE (C -5) 0 © 6940.00000 0 © 6940.00000 0.0 HYDROCARBON SHOWS NO SHOWS THE LAST 24 HOURS INTERVAL LITHOLOGY /REMARKS GAS DESCRIPTION LITHOLOGY COAL, CARBON SHALE, TUFFACEOUS SAND, CONGLOMERATE, CONGLOMERATE SAND, TUFFACEOUS SILT, TUFFACEOUS CLAY PRESENT 6940' = 80% SAND, 20% CONGLOMERATE SAND LITHOLOGY DRILL TO 6940', CIRCULATE AND CONDITION THE HOLE, FLOW CHECK, TRIP OUT OF THE HOLE TO THE BHA, LAY DOWN THE BHA, DAILY STAND BACK THE HWDP IN THE DERRICK, PULL NUKES AND SERVICE THE TOP DRIVE, RIG UP WEATHERFORD AND PICK UP THE ACTIVITY BHA, PICK UP 3.5 3.5" TUBING STINGER ASSEMBLY TO 921', RIG DOWN WEATHERFORD AND TRIP IN THE HOLE ON 5" DRILL PIPE SUMMARY TO 6893', CIRCULATE AND CONDITION THE DRILLING MUD, TRIP GAS WAS 729 UNITS, STAGE PUMPS HOLE SLIGHTLY PACKING OFF, HOLE IS UNLOADING COAL. EPOCH PERSONNEL ON BOARD BROWNE, WINSLOW + 2 SC DAILY COST $4265 DML, $1265 RW REPORT BY LEES F. BROWNE JR. • file: / /C: \DOCUMENTS AND SETTINGS\ADMINISTRATOR\MY DOCUMENTS \MY ... 1/19/2010 Daily Report Page 1 of 1 CHEVRON DAILY WELLSITE REPORT EPOCH M -10 • REPORT FOR MENAPACE /LESLEY DATE Jan 19, 2010 DEPTH 6940.00000 PRESENT OPERATION CEMENTING TIME 24 HRS YESTERDAY 6940.00000 24 HOUR FOOTAGE 0' CASING INFORMATION 13 3/8" @ 1402' DEPTH INCLINATION AZIMUTH VERTICAL DEPTH SURVEY DATA 6940' 46.92 15.38 5105.78' 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 6940' MW 9.3+ VIS 44 PV 12 YP 13 FL 6.0 Gels 4/4/5 CL- 11000 FC 2/- SOL 4.0 SD 0.10 OIL 1.0 MBL 7.5 pH 9.4 Ca+ 200 CCI MWD SUMMARY INTERVAL TO TOOLS GAS SUMMARY (units) HIGH LOW AVERAGE DITCH GAS 336 @ 6220' 2 @ CIRC 10 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 10 PENTANE (C -5) @ @ HYDROCARBON SHOWS NO SHOWS THE LAST 24 HOURS INTERVAL LITHOLOGY /REMARKS GAS DESCRIPTION LITHOLOGY 100% CEMENT PRESENT LITHOLOGY DAILY ACTIVITY CIRCULATE AND CONDITION THE HOLE, MAXIMUM GAS NOTED WAS 336 UNITS, TEST CEMENT LINES, TRIP OUT OF THE SUMMARY HOLE, CIRCULATE AND CONDITION AND RIG UP CEMENT LINES, SET CEMENT PLUGS (3) AT 6220', 5620' AND 4900' EPOCH PERSONNEL ON BOARD BROWNE, WINSLOW + 2 SC DAILY COST $4265 DML, $1265 RW REPORT BY LEES F. BROWNE JR. • file: / /C: \DOCUMENTS AND SETTINGS\ADMINISTRATOR\MY DOCUMENTS \MY ... 1/20/2010 , Daily Report Page 1 of 1 CHEVRON DAILY WELLSITE REPORT EPOCH M -10 ill REPORT FOR MENAPACE /LESLIE DATE Jan 20, 2010 DEPTH 6940.00000 PRESENT OPERATION CIRC MUD @ 4599' TIME 24 HOURS YESTERDAY 6940.00000 24 HOUR FOOTAGE 0 CASING INFORMATION 13 3/8" © 1402' DEPTH INCLINATION AZIMUTH VERTICAL DEPTH SURVEY DATA 6940' 46.92 15.38 5105.78' BIT INFORMATION INTERVAL CONDITION REASON NO. SIZE TYPE S/N JETS IN OUT FOOTAGE HOURS T /B /C PULLED 4 9.25" STC MDi616RR JD2519 6X14 4236 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 6940' MW 9.3+ VIS 44 PV 12 YP 13 FL 6.0 Gels 4/4/5 CL- 11000 FC 2/- SOL 4.0 SD 0.10 OIL 1.0 MBL 7.5 pH 9.4 Ca+ 200 CCI MWD SUMMARY INTERVAL TO TOOLS GAS SUMMARY (units) HIGH LOW AVERAGE DITCH GAS 67 TG @ 4100' 3 @ CIRC 7 CIRC TRIP GAS 67 @ 4100' III 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 4 CIRC PENTANE (C -5) @ @ HYDROCARBON SHOWS NO SHOWS THE LAST 24 HOURS INTERVAL LITHOLOGY /REMARKS GAS DESCRIPTI ON LITHOLOGY 4599' = 90% CEMENT (SOFT), 10% COAL PRESENT LITHOLOGY TRIP OUT OF THE HOLE FROM 3765' AND CLEAN OUT THE CEMENT STINGER, CIRCULATE THE DRILL STRING VOLUME, MAXIMUM GAS WAS 12 UNITS, TRIP OUT OF THE HOLE TO THE 3.5" TUBING © 921', LAY DOWN THE BHA, LAY DOWN THE 3.5" TUBING, RIG DAILY DOWN WEATHERFORD AND SERVICE THE RIG, PICK UP THE BHA TO 112' AND TRIP INTO THE HOLE TO 2500', FILL THE DRILL PIPE ACTIVITY WITH A MAXIMUM GAS OF 5 UNITS, WASH AND REAM DOWN TO FROM 3590' TO 4440' AND CIRCULATE AND CONDITION THE HOLE SUMMARY WITH A MAXIMUM TRIP GAS OF 67 UNITS, WASH AND REAM TO 4600' TAGGING CEMENT STRINGERS, SAMPLES COLLECTED WASHING DOWN AND AT 4600' EXHIBITED 70% SOFT CEMENT AND 30% COAL AND 90% CEMENT (SOFT), 10% COAL AT 4600', CIRCULATE AND CONDITION THE HOLE BUILDING NEW MUD. EPOCH PERSONNEL ON BOARD BROWNE, WINSLOW + 2 SC DAILY COST $4265 DML, $1265 RW REPORT BY LEES F. BROWNE JR. al file: / /C: \Documents and Settings\Administrator \My Documents \My Wells \Chevron \20100... 1/21/2010 Daily Report Page 1 of 1 CHEVRON (� DAILY WELLSITE REPORT EPOCH M -10 III REPORT FOR MENAPACE /LESLIE DATE Jan 21, 2010 DEPTH 6940.00000 PRESENT OPERATION TRIP OUT WITH CEMENT STINGER TIME 24 HRS YESTERDAY 6940.00000 24 HOUR FOOTAGE 0 CASING INFORMATION 13 3/8" © 1402' DEPTH INCLINATION AZIMUTH VERTICAL DEPTH SURVEY DATA 6940' 46.92 15.38 5105.78' 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 6940' MW 9.3+ VIS 44 PV 12 YP 13 FL 6.0 Gels 4/4/5 CL- 11000 FC 2/- SOL 4.0 SD 0.10 OIL 1.0 MBL 7.5 pH 9.4 Ca+ 200 CCI MWD SUMMARY INTERVAL TO TOOLS GAS SUMMARY (units) HIGH LOW AVERAGE DITCH GAS 40 @ TG 1 @ CIRC 4 CIRC TRIP GAS 40 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 3 PENTANE (C -5) @ @ HYDROCARBON SHOWS NO SHOWS THE LAST 24 HOURS INTERVAL LITHOLOGY /REMARKS GAS DESCRIPTION LITHOLOGY 100% CEMENT PRESENT LITHOLOGY CLEAN OUT MUD SYSTEM DUE TO CEMENT JOB, DRILL OUT CEMENT FROM 4600' TO 4660', CIRCULATE AND CONDITION THE HOLE, DAILY TAG CEMENT AT 4660', TRIP OUT OF THE HOLE TO THE BHA, FLOW CHECK THE HOLE AND STAND BACK THE HWDP AND LAY ACTIVITY DOWN THE BHA, SERVICE THE TOP DRIVE AND CLEAN THE RIG FLOOR, PICK UP 3RD PARTY TOOLS, RIG UP WEATHERFORD, PICK SUMMARY UP THE BHA, PICK UP THE 3.5" TUBING WITH CEMENT STINGER TO 921', TRIP IN THE HOLE TO 3523' AND WASH DOWN TO 4645', CIRCULATE AND CONDITION THE HOLE, TRIP GAS WAS 40 UNITS, TEST CEMENT LINES, PUMP CEMENT, TRIP OUT OF THE HOLE TO 3760' EPOCH PERSONNEL ON BOARD BROWNE, WINSLOW + 2 SC DAILY COST $4265 DML, $1265 RW REPORT BY LEES F. BROWNE JR. S file: / /C: \DOCUMENTS AND SETTINGS\ADMINISTRATOR \MY DOCUMENTS \MY ... 1/22/2010 Daily Report Page 1 of 1 CHEVRON DAILY WELLSITE REPORT EPOCH M -10 • REPORT FOR MENAPACE /LESLIE DATE Jan 21, 2010 DEPTH 6940.00000 PRESENT OPERATION TESTING BOPE TIME 24 HOURS YESTERDAY 6940.00000 24 HOUR FOOTAGE 0 CASING INFORMATION 13 3/8" © 1402' DEPTH INCLINATION AZIMUTH VERTICAL DEPTH SURVEY DATA 6940' 46.92 15.38 5105.78' 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 6940' MW 9.2 VIS 44 PV 11 YP 15 FL 6.5 Gels 5/5/6 CL- 11000 FC 2/- SOL 4.5 SD 0.10 OIL 0.5 MBL 6.5 pH 11.0 Ca+ 1200 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 NO MUD CIRCULATED THE LAST 24 HOURS INTERVAL LITHOLOGY /REMARKS GAS DESCRIPTION LITHOLOGY 100% CEMENT PRESENT LITHOLOGY DAILY ACTIVITY PULL OUT OF THE HOLE FROM 3760' AND LAY DOWN CEMENT EQUIPMENT, WORK ON KELLY HOSE, PREPARE TO TEST BOPE, SUMMARY REMOVE WEAR BUSHING, MAKE UP SPACEOUT FOR TEST JOINT, SEAT TEST PLUG, STACK AND PURGE, SERVICE THE RIG, TEST BOPE, LAY DOWN TEST TOOL. EPOCH PERSONNEL ON BOARD BROWNE, WINSLOW + 2 SC DAILY COST $4265 DML, $1265 RW REPORT BY LEES F. BROWNE JR. S file: / /C:\DOCUMENTS AND SETTINGS\ADMINISTRATOR\MY DOCUMENTS \MY ... 1/23/2010 Daily Report Page 1 of 1 CHEVRON DAILY WELLSITE REPORT EPOCH TBU M -10 • REPORT FOR MENAPACE /LESLIE DATE Jan 23, 2010 DEPTH 4438.00000 PRESENT OPERATION TRIP OUT OF THE HOLE TIME 24 HOURS YESTERDAY 4052.00000 24 HOUR FOOTAGE 386' CASING INFORMATION 13 3/8" © 1402' DEPTH INCLINATION AZIMUTH VERTICAL DEPTH 4283.96' 23.92 81.26 3691.34' SURVEY DATA 4142.46' 21.80 85.56 3560.65' 4043.19' 21.63 85.04 3468.61' BIT INFORMATION INTERVAL CONDITION REASON NO. SIZE TYPE S/N JETS IN OUT FOOTAGE HOURS T /B /C PULLED 4 9.25" STC MDi616 JD2519 6X14 4236' 4236' 0 0 5 9.25" STC FDS+ PP1397 3X18 4438' DRILLING PARAMETERS HIGH LOW AVERAGE CURRENT AVG RATE OF PENETRATION 255.2 @ 4415.00000 3.8 © 4303.00000 108.7 134.04326 FT /HR SURFACE TORQUE 13206 @ 4262.00000 9102 @ 4083.00000 10910.1 11517.34863 AMPS WEIGHT ON BIT 15 © 4416.00000 0 @ 4381.00000 7.6 13.87317 KLBS ROTARY RPM 152 @ 4052.00000 97 © 4191.00000 118.0 131.04651 RPM PUMP PRESSURE 1665 @ 4052.00000 956 © 4346.00000 1292.3 1414.62012 PSI DRILLING MUD REPORT DEPTH 6940' M -10PB MW 9.3 VIS 56 PV 13 YP 15 FL 5.5 Gels 4/4/5 CL- 11000 FC 2/- SOL 4.0 SD 0.10 OIL 0.5 MBL 6.2 pH 9.2 Ca+ 1000 CCI MWD SUMMARY INTERVAL TO TOOLS all GAS SUMMARY (units) HIGH LOW AVERAGE DITCH GAS 163 @ 4101.00000 1 @ 4305.00000 57.6 TRIP GAS 40 @ 4236' CUTTING GAS @ @ WIPER GAS - CHROMATOGRAPHY (ppm) SURVEY - METHANE (C -1) 37404 © 4195.00000 213 © 4305.00000 9560.9 CONNECTION GAS HIGH 0 ETHANE (C -2) 3838 @ 4195.00000 0 © 4354.00000 97.3 AVG 0 PROPANE (C -3) 0 @ 4438.00000 0 @ 4438.00000 0.0 CURRENT 0 BUTANE (C-4) 0 @ 4438.00000 0 @ 4438.00000 0.0 CURRENT BACKGROUND /AVG 0 PENTANE (C -5) 0 @ 4438.00000 0 @ 4438.00000 0.0 HYDROCARBON SHOWS NO SHOWS THE LAST 24 HOURS INTERVAL LITHOLOGY /REMARKS GAS DESCRIPTION LITHOLOGY TUFFACEOUS SILTSTONE, TUFFACEOUS CLAYSTONE, CARBONACEOUS SHALE, SAND, SANDSTONE, CONGLOMERATE SAND PRESENT 4438' = SAND 60 %, CONGLOMERATE SAND 20 %, SANDSTONE 10 %, TUFFACEOUS SILTSTONE 10% LITHOLOGY DAILY ACTIVITY FINISH TESTING BOPE, PICK UP BHA AND LOAD NUKES, RUN IN THE HOLE TO 4045' AND KICK OFF THE WELL, TRIP GAS WAS SUMMARY 40 UNITS, DRILL TO 4438' AND CIRCULATE AND CONDITION THE HOLE, TRIP OUT OF THE HOLE. EPOCH PERSONNEL ON BOARD BROWNE, WINSLOW + 2 SC DAILY COST $$4265 DML, $1265 RW REPORT BY LEES F. BROWNE JR. • file: / /C: \DOCUMENTS AND SETTINGS\ADMINISTRATOR \MY DOCUMENTS \MY ... 1/24/22010 Daily Report Page 1 of 1 CHEVRON DAILY WELLSITE REPORT EPOCH TBU M -10 410 REPORT FOR MENAPACE /LESLIE DATE Jan 24, 2010 DEPTH 4923.00000 PRESENT OPERATION DRILLING TIME 24 HOURS YESTERDAY 4439.00000 24 HOUR FOOTAGE 484' CASING INFORMATION 13 3/8" @1402' DEPTH INCLINATION AZIMUTH VERTICAL DEPTH SURVEY DATA 4561.20' 34.58 49.83 3936.86' BIT INFORMATION INTERVAL CONDITION REASON NO. SIZE TYPE S/N JETS IN OUT FOOTAGE HOURS T /B /C PULLED 5 9.25" STC FDS+ PP1397 3X18 4438' 11 DRILLING PARAMETERS HIGH LOW AVERAGE CURRENT AVG RATE OF PENETRATION 226.1 @ 4448.00000 6.6 @ 4713.00000 56.2 9.22600 FT /HR SURFACE TORQUE 11227 @ 4792.00000 5880 © 4451.00000 3419.5 0.00000 AMPS WEIGHT ON BIT 39 @ 4557.00000 1 © 4821.00000 18.5 15.19700 KLBS ROTARY RPM 70 @ 4603.00000 0 © 4678.00000 22.1 0.02500 RPM PUMP PRESSURE 1825 @ 4895.00000 1573 @ 4600.00000 1726.6 1643.84094 PSI DRILLING MUD REPORT DEPTH 4450' MW 9.3 VIS 48 PV 10 YP 15 FL 7.5 Gels 4/4/5 CL- 11000 FC 1/- SOL 4.0 SD 0.10 OIL 1.0 MBL 6.2 pH 11.10 Ca+ 600 CCI MWD SUMMARY INTERVAL TO TOOLS GAS SUMMARY (units) HIGH LOW AVERAGE DITCH GAS 134 © 4846.00000 2 @ 4615.00000 20.5 TRIP GAS 30 @4438' • CUTTING GAS @ © WIPER GAS - CHROMATOGRAPHY (ppm) SURVEY - METHANE (C -1) 26393 © 4846.00000 523 @ 4615.00000 3099.0 CONNECTION GAS HIGH 0 ETHANE (C -2) 231 @ 4467.00000 0 @ 4894.00000 15.0 AVG 0 PROPANE (C -3) 0 @ 4923.00000 0 @ 4923.00000 0.0 CURRENT 0 BUTANE (C -4) 0 @ 4923.00000 0 @ 4923.00000 0.0 CURRENT BACKGROUND /AVG 22 PENTANE (C -5) 0 @ 4923.00000 0 © 4923.00000 0.0 HYDROCARBON SHOWS NO SHOWS THE LAST 24 HOURS INTERVAL LITHOLOGY /REMARKS GAS DESCRIPTION LITHOLOGY TUFFACEOUS SILT, TUFFACEOUS CLAY, TUFFACEOUS SAND, SAND, CONGLOMERATE, COAL, CARBONACEOUS SHALE PRESENT LITHOLOGY 4920' = 100% CARBONACEOUS SHALE DAILY ACTIVITY FINISH TRIPPING OUT OF THE HOLE, CHANGE BIT AND ADD MUD MOTOR, TRIP TO BOTTOM, TRIP GAS WAS 30 UNITS, SUMMARY DRILL AND SLIDE TO 4923' EPOCH PERSONNEL ON BOARD BROWNE, WINSLOW + 2 SC DAILY COST $4265 DML, $1265 RW REPORT BY LEES. BROWNE JR. • file: / /C: \DOCUMENTS AND SETTINGS\ADMINISTRATOR \MY DOCUMENTS \MY ... 1/25/2010 Daily Report Page 1 of 1 • CHEVRON DAILY WELLSITE REPORT EPOCH TBU M -10 REPORT FOR MENAPACE /LESLIE DATE JAN. 25, 2010 DEPTH 5105.00000 PRESENT OPERATION TRIP IN HOLE TO DRILL TIME 24 HOURS YESTERDAY 4923.00000 24 HOUR FOOTAGE 182' CASING INFORMATION 13 3/8" @ 1402' DEPTH INCLINATION AZIMUTH VERTICAL DEPTH SURVEY DATA 5105' 4393 BIT INFORMATION INTERVAL CONDITION REASON NO. SIZE TYPE S/N JETS IN OUT FOOTAGE HOURS T /B /C PULLED 5 9.25" STC FDS+ PP1397 3X18 4438' 5105' 667' 17:55 4- 3- WT- C1- 3 -2 -ER PR 4RR 9.25" MDI616 JD2519 6X14 5105' 0 DRILLING PARAMETERS HIGH LOW AVERAGE CURRENT AVG RATE OF PENETRATION 102.6 @ 5044.00000 3.7 @ 5060.00000 41.6 23.00500 FT /HR SURFACE TORQUE 14361 @ 5081.00000 9205 @ 5070.00000 5609.0 11906.04800 AMPS WEIGHT ON BIT 43 @ 4956.00000 5 @ 4951.00000 20.2 14.72300 KLBS ROTARY RPM 75 © 5093.00000 0 @ 4970.00000 32.7 63.36200 RPM PUMP PRESSURE 1785 @ 5038.00000 1595 @ 4954.00000 1715.4 1693.96600 PSI DRILLING MUD REPORT DEPTH 4500' MW 9.3 VIS 47 PV 13 YP 16 FL 6.0 Gels 4/6/9 CL- 10000 FC 2/- SOL 3.6 SD 0.10 OIL 1.0 MBL 6.2 pH 10.6 Ca+ 460 CCI MWD SUMMARY INTERVAL TO TOOLS GAS SUMMARY (units) HIGH LOW AVERAGE DITCH GAS 125 @ 4989.00000 8 @ 5078.00000 37.8 TRIP GAS - CUTTING GAS @ @ WIPER GAS 133 CHROMATOGRAPHY (ppm) SURVEY - METHANE (C -1) 21544 @ 4989.00000 1354 © 5059.00000 5814.6 CONNECTION GAS HIGH 0 ETHANE (C -2) 45 @ 4992.00000 0 @ 5009.00000 3.1 AVG 0 PROPANE (C -3) 0 @ 5105.00000 0 © 5105.00000 0.0 CURRENT 0 BUTANE (C -4) 0 @ 5105.00000 0 @ 5105.00000 0.0 CURRENT BACKGROUND /AVG 0 PENTANE (C -5) 0 @ 5105.00000 0 @ 5105.00000 0.0 HYDROCARBON SHOWS NO SHOWS THE LAST 24 HOURS INTERVAL LITHOLOGY /REMARKS GAS DESCRIPTION LITHOLOGY SAND, SANDSTONE, TUFFACEOUS SAND, COAL, CARBON SHALE PRESENT LITHOLOGY 5105' = 90% SAND, 10% TUFFACEOUS SILT DRILUSLIDE TO 5078', SHORT TRIP TO 4350' WITH 50K OVERPULL @ 4770', KELLY UP AND PUMP OUT OF THE DAILY HOLE TO 4665', BACK REAM FROM 4587' TO 4556', TRIP OUT TO 4066' AND SERVICE THE TOP DRIVE, TRIP IN THE ACTIVITY HOLE FROM 4066' TO 5014', WASH AND REAM TO 5098', PUMP A SWEEP AND DRILL TO 5015', WIPER GAS WAS SUMMARY 133 UNITS, TRIP OUT TO 110' AND LAY DOWN THE BHA, TOLL ORIENTATION, DOWN LOAD DATA, PICK UP THE BHA, MAKE UP THE RR BIT, PICK UP DIRECTIONAL TOOLS, RUN IN THE HOLE WITH THE HWDP TO 653', TRIP IN THE HOLE TO 2737' EPOCH PERSONNEL ON BOARD BROWNE, WINSLOW + 2 SC DAILY COST $4265 DML, $1265 RW REPORT BY LEES F. BROWNE JR. S file: / /C: \DOCUMENTS AND SETTINGS\EPOCHADMIN\MY DOCUMENTS \MY WEL... 1/26/2010 Daily Report Page 1 of 1 CHEVRON EPOCH el DAILY WELLSITE REPORT E 1/1 H TBU M -10 REPORT FOR HAUCKS /MENAPACE DATE Jan 26, 2010 DEPTH 5684.00000 PRESENT OPERATION TRIP OUT FOR BIT TIME 24 HOURS YESTERDAY 5105 00000 24 HOUR FOOTAGE 579' CASING INFORMATION 13 3/8• @ 1402' DEPTH INCLINATION AZIMUTH VERTICAL DEPTH 5684' 4512.71' SURVEY DATA 5606.85' 74 98 12.00 4492.76' 5419.79' 74.30 12.13 4443 78' 5231.85' 63.94 15.24 4378.68' BIT INFORMATION INTERVAL CONDITION REASON NO. SIZE TYPE S/N JETS IN OUT FOOTAGE HOURS T /B/C PULLED 4RR 9.25" MDI616 JD2519 6X14 5105' 5684' 579' 16 35 POOH DRILLING PARAMETERS HIGH LOW AVERAGE CURRENT AVG RATE OF PENETRATION 684.2 @ 5482.00000 2.4 @ 5620.00000 85.8 10.16002 FT/HR SURFACE TORQUE 20086 6 5536.00000 11906 6 5105.00000 15443.1 12835.94238 AMPS WEIGHT ON BIT 14 @ 5670.00000 0 @ 5524 00000 6.6 14.62243 KLBS ROTARY RPM 147 6 5617.00000 63 @ 5105.00000 123.8 123.88338 RPM PUMP PRESSURE 2084 6 5638.00000 1122 6 5408.00000 1966.3 1951.88403 PSI DRILLING MUD REPORT DEPTH 5105' MW 9 3 VIS 47 PV 14 YP 15 FL 5.0 Gels 4/8/12 CL- 10000 FC 2/- SOL 3.6 SD 010 OIL 1.0 MBL 7.0 pH 10.2 Ca+ 500 CCI MWD SUMMARY INTERVAL TO TOOLS GAS SUMMARY (units) HIGH LOW AVERAGE DITCH GAS 85 @ 5676.00000 3 @ 5586.00000 18.6 TRIP GAS 105 @ 5105' CUTTING GAS @ @ WIPER GAS - • CHROMATOGRAPHY (ppm) SURVEY - METHANE (C -1) 15700 @ 5678.00000 649 @ 5586.00000 3492.0 CONNECTION GAS HIGH 190 @ 5671' ETHANE (C -2) 0 @ 5684.00000 0 @ 5684 00000 0 0 AVG 3 PROPANE (C -3) 0 @ 5684.00000 0 @ 5684.00000 0.0 CURRENT 190 (COAL) BUTANE (C -4) 0 @ 5684.00000 0 @ 5684 00000 0.0 CURRENT BACKGROUND /AVG 0 PENTANE (C -5) 0 @ 5684.00000 0 @ 5684.00000 0.0 HYDROCARBON SHOWS NO SHOWS THE LAST 24 HOURS INTERVAL LITHOLOGY/REMARKS GAS DESCRIPTION LITHOLOGY SAND, SANDSTONE, CONGLOMERATE SAND, CONGLOMERATE, COAL, CARBON SHALE, TUFFACEOUS SILT AND CLAY PRESENT LITHOLOGY 5684' = 50% COAL, 50% CARBONACEOUS SHALE DAILY ACTIVITY TRIP IN THE HOLE FROM 2737' TO 5012', WASH AND REAM TO 5105', TRIP GAS WAS 105 UNITS, DRILL FORMATION TO 5684', CIRCULATE AND CONDITION THE HOLE, SUMMARY PUMP A SWEEP, TRIP OUT OF THE HOLE FOR NEW BIT. EPOCH PERSONNEL ON BOARD BROWNE, WINSLOW + 2 SC DAILY COST $4265 DML, $1265 RW REPORT BY LEES F. BROWNE JR. • file: / /C: \DOCUMENTS AND SETTINGS\EPOCHADMIN\MY DOCUMENTS\MY WEL... 1/27/2010 Daily Report Page 1 of 1 • CHEVRON EPOCH DAILY WELLSITE REPORT PI TBU M-10 REPORT FOR HAUCKS /MENAPACE DATE Jan 27, 2010 DEPTH 5753 00000 PRESENT OPERATION DRILLING TIME 24 HOURS YESTERDAY 5684.00000 24 HOUR FOOTAGE 69' CASING INFORMATION 13 3/8" (42 1402' DEPTH INCLINATION AZIMUTH VERTICAL DEPTH SURVEY DATA 5684' 4512.71' BIT INFORMATION INTERVAL CONDITION REASON NO. SIZE TYPE S/N JETS IN OUT FOOTAGE HOURS T /B /C PULLED 4RR 9.25" MDI816 JD2519 6X14 5105 5684 579' 16:35 5- 4- CT- N- X -1 -HC PR 5RR 9 25" FDS+ PP1397 3X18 5684 4 DRILLING PARAMETERS HIGH LOW AVERAGE CURRENT AVG RATE OF PENETRATION 35.7 5747.00000 9.2 © 5686.00000 21.5 15.83396 FT /HR SURFACE TORQUE 13051 g 5701.00000 10853 (rD 5702 00000 12299.0 12718.99219 AMPS WEIGHT ON BIT 19 g 5741.00000 12 g 5686 00000 17.1 18.82185 KLBS ROTARY RPM 123 5684.00000 77 g 5753.00000 82.5 77.68554 RPM PUMP PRESSURE 2156 g 5715 00000 1729 ( 5740.00000 1978.7 1786.06555 PSI DRILLING MUD REPORT DEPTH 5701' MW 9.2+ VIS 46 PV 12 YP 12 FL 5.5 Gels 4/5/8 CL- 7000 FC 2/- SOL 3.8 SD 0.10 OIL 1.0 MBL 7.5 pH 9.6 Ca+ 520 CCI MWD SUMMARY INTERVAL TO TOOLS GAS SUMMARY (units) HIGH LOW AVERAGE DITCH GAS 74 (tD 5703.00000 19 I 5753.00000 51.9 TRIP GAS 527 @ 5684' CUTTING GAS 0 5753.00000 0 I 5753.00000 0.0 WIPER GAS - CHROMATOGRAPHY (ppm) SURVEY - III METHANE (C -1) 10749 5703.00000 4976 @ 5713.00000 5118.8 CONNECTION GAS HIGH 250 in coal ETHANE (C-2) 0 @ 5753.00000 0 @ 5753.00000 0.0 AVG 250 PROPANE (C -3) 0 5753.00000 0 5753.00000 0.0 CURRENT 250 (1 conn) BUTANE (C -4) 0 @ 5753.00000 0 g 5753.00000 0.0 CURRENT BACKGROUND /AVG 20 PENTANE (C -5) 0 5753.00000 0 g 5753.00000 0.0 HYDROCARBON SHOWS NO SHOWS THE LAST 24 HOURS INTERVAL LITHOLOGY /REMARKS GAS DESCRIPTION LITHOLOGY CARBONACEOUS SHALE AND COAL PRESENT LITHOLOGY 5730' = 60% CARBONACEOUS SHALE, 40% COAL TRIP OUT OF THE HOLE TO THE BHA, FLOW CHECK AT THE SHOE = STATIC, 10K OVER PULL, LAY DOWN THE BHA, STAND BACK THE HWDP, DOWNLOAD THE MWD TOOL, DAILY SERVICE THE RIG, PICK UP NEW BHA, PICK UP MUD MOTOR, SERVICE RIG AND PICK UP BHA, PICK UP 9.25" MILL TOOTH BIT, ORIENTATE THE TOOL, PICK UP THE BHA AND MAKE ACTIVITY UP THE BHA, RUN IN THE HOLE TO 1410', CIRCULATE AND CONDITION, SHALLOW TEST THE MWD TOOL, TRIP IN THE HOLE TO 4348', CHECK FLOW, CIRCULATE AND CONDITION SUMMARY THE HOLE BOTTOMS UP DUE TO IMPROPER DISPLACEMENTS, TRIP IN THE HOLE TO 5581' AND WASH AND REAM TO 5884', TRIP GAS WAS 527 UNITS W/ EXCESS COAL CAVINGS, DRILL AHEAD TO 5752' WITH A CONNECTION GAS OF 250 UNITS OVER BACK GROUND g 5701' (IN COAL). EPOCH PERSONNEL ON BOARD BROWNE, WINSLOW + 2 SC DAILY COST $4265 DML, $1265 RW REPORT BY LEES F. BROWNE JR. • file: / /C: \DOCUMENTS AND SETTINGS\EPOCHADMIN\MY DOCUMENTS\MY WEL... 1/28/2010 Daily Report Page 1 of 1 CHEVRON EPOCH • DAILY WELLSITE REPORT El TBU M -10 REPORT FOR HAUCKS /MENAPACE DATE Jan 28, 2010 DEPTH 5800.00000 PRESENT OPERATION PREP TO RUN CSG TIME 24 HOURS YESTERDAY 5753.00000 24 HOUR FOOTAGE 47' CASING INFORMATION 13 3/8" @ 1402' DEPTH INCLINATION AZIMUTH VERTICAL DEPTH SURVEY DATA 5800' 79 65 8.20 4538 58 BIT INFORMATION INTERVAL CONDITION REASON NO. SIZE TYPE S/N JETS IN OUT FOOTAGE HOURS T /B /C PULLED 5RR 9.25" FDS+ PP1397 3X18 5684 5800 116' 6:49 5- 4- CT- A- 4 -2 -ER TD DRILLING PARAMETERS HIGH LOW AVERAGE CURRENT AVG RATE OF PENETRATION 17.2 @ 5775.00000 6.8 @ 5799.00000 14.1 11 16805 FT/HR SURFACE TORQUE 13714 0 5780.00000 12449 0 5759.00000 12186.6 13455.14355 AMPS WEIGHT ON BIT 18 @ 5753.00000 9 @ 5799.00000 17.9 10.48099 KLBS ROTARY RPM 81 @ 5779.00000 76 @ 5762.00000 73.9 79.05583 RPM PUMP PRESSURE 1786 0 5781.00000 1702 0 5765.00000 1634.9 1743.30334 PSI DRILLING MUD REPORT DEPTH 5701' MW 9.2+ VIS 46 PV 12 YP 12 FL 5.5 Gels 4/5/8 CL- 7000 FC 2/- SOL 3.8 SD 0.10 OIL 1.0 MBL 7.5 pH 9.6 Ca+ 520 CCI MAD SUMMARY INTERVAL TO TOOLS GAS SUMMARY (units) HIGH LOW AVERAGE DITCH GAS 19 @ 5753.00000 10 @ 5800.00000 13 6 TRIP GAS - CUTTING GAS 0 @ 5800.00000 0 @ 5800 00000 0 0 WIPER GAS - CHROMATOGRAPHY (ppm) SURVEY - METHANE (C -1) 3888 @ 5753.00000 1904 @ 5800.00000 2631.4 CONNECTION GAS HIGH - IIII ETHANE (C -2) 0 @ 5800.00000 0 @ 5800 00000 0.0 AVG - PROPANE (C -3) 0 @ 5800.00000 0 @ 5800.00000 0 0 CURRENT - BUTANE (C-4) 0 @ 5800.00000 0 @ 5800 00000 0.0 CURRENT BACKGROUND /AVG - PENTANE (C -5) 0 @ 5800.00000 0 @ 5800.00000 0.0 HYDROCARBON SHOWS NO SHOWS THE LAST 24 HOURS INTERVAL LITHOLOGY /REMARKS GAS DESCRIPTION LITHOLOGY COAL, CARBON SHALE, SAND, CONGLOMERATE SAND, SANDSTONE PRESENT LITHOLOGY 5800' = 50% SAND, 10% CONGLOMERATE SAND, 10% SANDSTONE, 20% SILTSTONE, 10% TUFFACEOUS CLAY ABNT COAL CAVINGS DAILY ACTIVITY DRILL FORMATION TO 5800', CIRCULATE AND CONDITION THE HOLE 2 TIMES BOTTOMS UP, TRIP OUT OF THE HOLE TO 4380' WITH 40K OVERPULL AT 5613', INCREASE THE SUMMARY MW FROM 9 2+ TO 9.5 FOR CASING RUN, CIRCULATE AND CONDITION THE HOLE, TRIP OUT OF THE HOLE TO 200', LAY DOWN THE BHA, RIG UP TO RUN CASING, PICK UP SHOE TRACK AND LOAD PIPE SKATE I EPOCH PERSONNEL ON BOARD BROWNE, WINSLOW + 2 SC DAILY COST $4265 DML, $1265 RW REPORT BY LEES F. BROWNE JR. • file: / /C:\DOCUMENTS AND SETTINGS\EPOCHADMIN\MY DOCUMENTS\MY WEL... 1/29/2010 Daily Report Page 1 of 1 • CHEVRON DAILY WELLSITE REPORT EPOCH TBU M -10 REPORT FOR HAUCKS /MENAPACE DATE Jan 29, 2010 DEPTH 5800.00000 PRESENT OPERATION RIG DOWN CEMENTERS TIME 24 HOURS YESTERDAY 5800 00000 24 HOUR FOOTAGE 0 CASING INFORMATION 7" @ 5789' DEPTH INCLINATION AZIMUTH VERTICAL DEPTH SURVEY DATA 5800' 79.65 8.20 4538.58' 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 5800' MW 9.5 VIS 50 PV 16 YP 15 FL 4.5 Gels 5/5/7 CL- 8000 FC 2/- SOL 4.2 SD 0.10 OIL 1.0 MBL 7.5 pH 9.3 Can 580 CCI MWD SUMMARY INTERVAL TO TOOLS GAS SUMMARY (units) HIGH LOW AVERAGE DITCH GAS 248 @ TG 3 @ CIRC 15 CIRC TRIP GAS 248 CUTTING GAS @ @ WIPER GAS - CHROMATOGRAPHY (ppm) SURVEY - METHANE (C -1) @ @ CONNECTION GAS HIGH - ETHANE (C @ @ @ AVG - PROPANE (C -3) @ CURRENT - BUTANE (C -4) @ @ CURRENT BACKGROUND /AVG - PENTANE (C -5) @ @ HYDROCARBON SHOWS NO SHOWS THE LAST 24 HOURS INTERVAL LITHOLOGY/REMARKS GAS DESCRIPTION LITHOLOGY 100% CEMENT PRESENT LITHOLOGY DAILY ACTIVITY RUN IN THE HOLE WITH 7" CASING TO 1399', CIRCULATE AND CONDITION THE HOLE, MAXIMUM GAS IS 18 UNITS, RUN IN THE HOLE TO 4405' CIRCULATE AND CONDITION THE SUMMARY HOLE, MAXIMUM GAS IS 45 UNITS, RUN IN THE HOLE TO 5789', CIRCULATE AND CONDITION THE HOLE, TRIP GAS MAXIMUM WAS 248 UNITS, CEMENT THE CASING TO THE HOLE, PRESSURE TEST THE CEMENT AND CHART, RIG DOWN CEMENTERS. EPOCH PERSONNEL ON BOARD BROWNE, WINSLOW DAILY COST $3425 DML $1265 RW REPORT BY LEES F. BROWNE JR. • file: / /C: \DOCUMENTS AND SETTINGS\EPOCHADMIN\MY DOCUMENTS\MY WEL... 1/30/2010 r Daily Report Page 1 of 1 CHEVRON EPOCH DAILY WELLSITE REPORT till TBU M -10 REPORT FOR HAUCKS /MENAPACE DATE Jan 30, 2010 DEPTH 5800 00000 PRESENT OPERATION MISC RIG WORK TO DRILL TIME 24 HOURS YESTERDAY 5800.00000 24 HOUR FOOTAGE 0 CASING INFORMATION 7" @ 5789' DEPTH INCLINATION AZIMUTH VERTICAL DEPTH SURVEY DATA 5800' 79.65 8.20 4538.58' 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 a @ AMPS WEIGHT ON BIT @ @ KLBS ROTARY RPM @ @ RPM PUMP PRESSURE @ @ PSI DRILLING MUD REPORT DEPTH 5800' MW 9.6 VIS 51 PV 16 YP 16 FL 50 Gels 5/7/8 CL- 7000 FC 2/- SOL 5.3 SD 0.10 OIL 1.0 MBL 7.5 pH 9.4 Ca+ 640 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 NO MUD CIRCULATED THE LAST 24 HOURS INTERVAL LITHOLOGY /REMARKS GAS DESCRIPTION LITHOLOGY PRESENT LITHOLOGY 100% CEMENT DAILY ACTIVITY RIG DOWN CASING EQUIPMENT, LAY DOWN RUNNING TOOL, MISC RIG WORK, CLEAN MUD PITS, PICK UP TEST TOOLS, TEST BOPE, LAY DOWN TEST TOOLS, MISC RIG SUMMARY WORK TO PREP TO DRILL EPOCH PERSONNEL ON BOARD BROWNE, WINSLOW DAILY COST $3995 DML, $1265 RW REPORT BY LEES F. BROWNE JR. III file: / /C: \DOCUMENTS AND SETTINGS\EPOCHADMIN\MY DOCUMENTS\MY WEL... 1/31/2010 ir Daily Report Page 1 of 1 CHEVRON • DAILY WELLSITE REPORT r•I EPOCH LOGO TBU M -10 REPORT FOR HAUCKS /MENAPACE DATE Jan 31, 2010 DEPTH 5800.00000 PRESENT OPERATION PICK UP DRILL PIPE TIME 24 HOURS YESTERDAY 5800 00000 24 HOUR FOOTAGE 0 CASING INFORMATION 7" @ 5789' DEPTH INCLINATION AZIMUTH VERTICAL DEPTH SURVEY DATA 5800' 79.65 8.20 4538.58' 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 5800' MW 9.8 VIS 54 PV 18 YP 15 FL 50 Gels 4/6/8 CL- 7000 FC 2/- SOL 5.3 SD 0.10 OIL 1.0 MBL 7.5 pH 9.4 Can 640 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 NO MUD CIRCULATED THE LAST 24 HOURS INTERVAL LITHOLOGY /REMARKS GAS DESCRIPTION LITHOLOGY 100% CEMENT PRESENT LITHOLOGY DAILY ACTIVITY SERVICE THE TOP, TEST IBOP, RIG DOWN TEST EQUIPMENT, PICK UP DRILL PIPE, MAKE UP 6 1/8" BIT, BIT SUB, PICK UP 3.5" DRILL PIPE, TRIP IN THE HOLE WITH 3.5" SUMMARY DRILL PIPE, PICK UP BHA AND STRAP, MAKE UP NEW BIT, BIT SUB AND STABS, PICK UP HVWDP AND COLLARS. EPOCH PERSONNEL ON BOARD BROWNE, WINSLOW DAILY COST $3995 DML, $1265 RW REPORT BY LEES F. BROWNE JR. S file: / /Z: \Chevron \20100131.htm 2/1/2010 r Daily Report Page 1 of 1 CHEVRON 0 DAILY WELLSITE REPORT N EPOCH LOGO TBU M -10 REPORT FOR HAUCKS /SMITH DATE Feb 01, 2010 DEPTH 5800.00000 PRESENT OPERATION TRIP OUT OF HOLE TO 5072' TIME 24 HOURS YESTERDAY 5800.00000 24 HOUR FOOTAGE 0 CASING INFORMATION 7" @ 5789' DEPTH INCLINATION AZIMUTH VERTICAL DEPTH SURVEY DATA 5800' 79.65 8.20 4538 58' BIT INFORMATION INTERVAL CONDITION REASON NO. SIZE TYPE S/N JETS IN OUT FOOTAGE HOURS T /B /C PULLED 6 6.125" STC XR +PS PJ5928 5800 0 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 5800' MW 8.7+ VIS 36 PV 5 YP 8 FL 7.0 Gels 4/4/5 CL- 8000 PC 1/- SOL 1.7 SD - OIL 05 MBL - pH 9.8 Ca+ 40 CCI MWD SUMMARY INTERVAL TO TOOLS GAS SUMMARY (units) HIGH LOW AVERAGE DITCH GAS 1 @ CIRC 0 @ CIRC 0.5 TRIP GAS - CUTTING GAS @ @ WIPER GAS - CHROMATOGRAPHY (ppm) SURVEY - METHANE (C -1) @ @ CONNECTION GAS HIGH - 1110 ETHANE (C -2) @ @ AVG - PROPANE (C -3) @ @ CURRENT - BUTANE (C -4) @ @ CURRENT BACKGROUND /AVG 0.5 PENTANE (C -5) @ @ HYDROCARBON SHOWS MAXIMUM GAS WASHING AND REAM CEMEN TO 5701' WAS 1 UNIT INTERVAL LITHOLOGY /REMARKS GAS DESCRIPTION LITHOLOGY PRESENT LITHOLOGY 100% CEMENT DAILY PICK UP 4" HWDP, CHANGE OUT ELEVATORS TO 3.5 ", PICK UP 3.5" DRILL PIPE, CIRCULATE AND CONDITION THE HOLE AT 2754', PICK UP 3 5" DRILL PIPE TO 4723', WASH AND ACTIVITY REAM TO 4810', TAG CEMENT AT 4810', PRESSURE TESAT THE CASING, WASH DOWN CEMENT TO 4831', CIRCULATE AND CONDITION THE HOLE TO 4878, PRESSURE TEST THE SUMMARY CASING SHOE, TRIP IN THE HOLE TO 5240', WASH AND REAM TO 5701', CIRCULATE AND CONDITION THE HOLE BOTTOMS UP TWICE, CHANGE OUT THE MUD SYSTEM, SERVICE THE RIG, TRIP OUT OF THE HOLE TO 5072' EPOCH PERSONNEL ON BOARD BROWNE, WINSLOW DAILY COST $3995 DML, $1265 RW REPORT BY LEES F. BROWNE JR. • file: / /Z: \Chevron \20100201.htm 2/2/2010 Daily Report Page 1 of 1 CHEVRON • DAILY WELLSITE REPORT iN EPOCH LOGO TBU M -10 REPORT FOR HAUCKS /SMITH DATE Feb 02, 2010 DEPTH 5800 00000 PRESENT OPERATION PICK UP DRILLING BHA TIME 24 HOURS YESTERDAY 5800.00000 24 HOUR FOOTAGE 0 CASING INFORMATION 7" a 5789' DEPTH INCLINATION AZIMUTH VERTICAL DEPTH SURVEY DATA 5800 79 65 8.20 4538 58 BIT INFORMATION INTERVAL CONDITION REASON NO. SIZE TYPE S/N JETS IN OUT FOOTAGE HOURS T /B/C PULLED 6 6.125" STCXR +PS PJ5928 5800 5800 0 0 2-2-CT-C1-1-0-WT BHA 7 6.125" HC HCD505ZX 7120859 1X10, 2X12, 2X14 5800 0 DRILLING PARAMETERS HIGH LOW AVERAGE CURRENT AVG RATE OF PENETRATION a a FT /HR SURFACE TORQUE a a AMPS WEIGHT ON BIT a a KLBS ROTARY RPM a a RPM PUMP PRESSURE a a PSI DRILLING MUD REPORT DEPTH 5800' MW 8.8 VIS 40 PV 7 YP 15 FL 5.0 Gels 6/7/8 CL- 9000 FC 1/- SOL 1.8 SD 0.10 OIL - MBL - pH 10.1 Ca+ 80 CCI MWD SUMMARY INTERVAL TO TOOLS GAS SUMMARY Mills) HIGH LOW AVERAGE DITCH GAS 1 a CIRC 0 a CIRC 0 5 CIRC TRIP GAS - CUTTING GAS a a WIPER GAS - CHROMATOGRAPHY (ppm) SURVEY - . METHANE (C -1) a a CONNECTION GAS HIGH - ETHANE (C -2) a a AVG - PROPANE (C -3) a a CURRENT - BUTANE (C -4) a a CURRENT BACKGROUND /AVG - PENTANE (C -5) a a HYDROCARBON SHOWS MAXIMUM GAS RECORDED CIRCULATING HOLE WAS 1 UNIT INTERVAL LITHOLOGY /REMARKS GAS DESCRIPTION LITHOLOGY PRESENT LITHOLOGY 100 % CEMENT TRIP OUT OF THE HOLE WITH 3.5" DRILL PIPE TO 589', CHANGE OUT ELEVATORS TO 4 ", STAND BACK HVVDP TO 37', CHANGE OUT ELEVATORS TO 3 5" AND LAY DOWN COLLARS, DAILY SERVICE THE TOP DRIVE, MAKE UP SCRAPPER BRUSH ASSEMBLY, TRIP IN THE HOLE ON 3.5" DRILL PIPE TO 2541', CHANGE OUT ELEVATORS TO 4" AND TRIP IN THE HOLE TO ACTIVITY 3088', CHANGE OUT ELEVATORS TO 3.5" AND TRIP IN THE HOLE TO 5628', WASH AND REAM WITH SLOW PUMP RATES AND TAG FLOAT COLLAR AT 5701', ROTATE AND SUMMARY RECIPROCATE THE MUD FROM 5628' TO 5701', CIRCULATE BOTTOMS UP TWICE, MAXIMUM GAS RECORDED WAS 1 UNIT TRIP OUT OF THE HOLE TO THE BHA, LAY DOWN THE BHA, BREAK THE BITR, LAY DOWN THE SCRAPPER, RUN A USIT LOG TO 5397', PICK UP BHA, MAKE UP BIT AND BHA. EPOCH PERSONNEL ON BOARD BROWNE, WINSLOW DAILY COST $3995 DML, $1265 RW REPORT BY LEES F. BROWNE JR. • file: / /Z: \Chevron \20100202.htm 2/3/2010 Daily Report Page 1 of 1 CHEVRON DAILY WELLSITE REPORT IA EPOCH LOGO TBU M -10 REPORT FOR HAUCKS /SMITH DATE Feb 03, 2010 DEPTH 5830.00000 PRESENT OPERATION CIRCULATE OFF BOTTOM TIME 24 HOURS YESTERDAY 5800.00000 24 HOUR FOOTAGE 30' CASING INFORMATION 7" @ 5789' DEPTH INCLINATION AZIMUTH VERTICAL DEPTH SURVEY DATA 5800' 79.65 8.20 4538.58' BIT INFORMATION INTERVAL CONDITION REASON NO SIZE TYPE S/N JETS IN OUT FOOTAGE HOURS T /B/C PULLED 7 6.125" HC HCD505ZX 7120859 1X10, 2X12, 2X14 5800 5830 30' 3:45 1- 1- CT -G -X -0 PR 8 6.125" STC MSi61613 JD2642 6X12 5830 0 DRILLING PARAMETERS HIGH LOW AVERAGE CURRENT AVG RATE OF PENETRATION 78.2 @ 5804.00000 4.0 @ 5816.00000 14.6 7.39200 FT /HR SURFACE TORQUE 13455 16 5800.00000 7870 6 5802.00000 8534.3 8154.44600 AMPS WEIGHT ON BIT 20 @ 5830.00000 7 @ 5821 00000 12 7 20 12600 KLBS ROTARY RPM 101 @ 5807.00000 79 6 5800.00000 100.3 80 16700 RPM PUMP PRESSURE 1743 6 5800.00000 1294 6 5822 00000 1689.2 1710.76200 PSI DRILLING MUD REPORT DEPTH 5800' MW 8.8+ VIS 40 PV 8 YP 13 FL 4.7 Gels 5/6/6 CL- 8000 FC 1/- SOL 2.2 SD - OIL - MBL - pH 10 5 Ca+ 80 CCI MWD SUMMARY INTERVAL TO TOOLS GAS SUMMARY (units) HIGH LOW AVERAGE DITCH GAS 10 @ 5821.00000 1 @ 5807.00000 3 8 TRIP GAS 30 @ 5800' CUTTING GAS @ @ WIPER GAS - CHROMATOGRAPHY (ppm) SURVEY - ID METHANE (C -1) 1910 @ 5821.00000 201 @ 5807.00000 704.7 CONNECTION GAS HIGH - ETHANE (C -2) 0 @ 5830.00000 0 @ 5830.00000 0.0 AVG - PROPANE (C -3) 0 @ 5830.00000 0 @ 5830.00000 0.0 CURRENT - BUTANE (C -4) 0 @ 5830.00000 0 @ 5830.00000 0.0 CURRENT BACKGROUND /AVG 3 PENTANE (C -5) 0 @ 5830.00000 0 @ 5830.00000 0.0 HYDROCARBON SHOWS NO SHOWS THE LAST 24 HOURS INTERVAL LITHOLOGY /REMARKS GAS DESCRIPTION LITHOLOGY SAND, TUFFACEOUS SILT, TUFFACEOUS CLAY, SANDSTONE PRESENT LITHOLOGY 5830' = SAND 40 %, TUFFACEOUS SILT 30 %, CONGLOMERATE SAND 10 %, SANDSTONE 10 %, TUFFACEOUS CLAYSTONE 10% WAIT ON TOOLS, SERVICE THE TOP DRIVE, PICK UP THE BHA, LOAD NUKE SOURCES, CHANGE OUT ELEVATORS TO 4 ", TRIP IN THE HOLE WITH HWDP, CHANGE OUT DAILY ELEVATORS TO 3.5 TRIP IN THE HOLE TO 1100', SHALLOW TEST THE MIND TOOL, TRIP IN THE HOLE TO 2718', WITH 3.5" DRILL PIPE, CHANGE OUT ELEVATORS TO 4" AND RUN ACTIVITY IN THE HOLE WITH 4" DRILL PIPE TO 3176', CHANGE OUT ELEVATORS TO 3.5" AND TRIP IN THE HOLE TO 5632', DRILL OUT CEMENT AND FLOAT SHOE AND DISPLACE THE HOLE SUMMARY TO 5799', TRIP GAS WAS 19 UNITS, DRILL FORMATION TO 5820', RUN F.I.T DRILL FORMATION TO 5830', TRIP OUT OF THE HOLE TO 145', REMOVE SOURCES AND LAY DOWN THE BHA, BREAK THE BIT AND PICK UP THE BHA, MAKE UP THE NEW BIT AND TRIP IN THE HOLE AND INSTALL THE NUKES SOURCES AND TRIP TO BOTTOM, TRIP GAS WAS 30 UNITS. EPOCH PERSONNEL ON BOARD BROWNE, WINSLOW + 2 SC DAILY COST $4265 DML. $1265 RW REPORT BY LEES F. BROWNE JR. • file: / /C: \Documents and Settings \RigUser\Desktop\20100203.htm 2/4/2010 Daily Report Page 1 of 1 CHEVRON 1110 DAILY WELLSITE REPORT iii EPOCH LOGO TBU M -10 REPORT FOR HAYNES /HAUCKS DATE Feb 04, 2010 DEPTH 6786.00000 PRESENT OPERATION WIPER TRIP TIME 24 HOURS YESTERDAY 5830.00000 24 HOUR FOOTAGE 956' CASING INFORMATION 7" @ 5789' DEPTH INCLINATION AZIMUTH VERTICAL DEPTH SURVEY DATA 6469.57' 88.97 0.33 4561.54' BIT INFORMATION INTERVAL CONDITION REASON NO. SIZE TYPE S/N JETS IN OUT FOOTAGE HOURS T /B /C PULLED 8 8.125" STC MSI613 JD2642 6X12 5830 14:53 DRILLING PARAMETERS HIGH LOW AVERAGE CURRENT AVG RATE OF PENETRATION 204.8 @ 6413.00000 4 1 @ 6727.00000 89.7 24.88233 FT/HR SURFACE TORQUE 11557 @ 6703.00000 8154 © 5830.00000 10128.8 10588.79004 AMPS WEIGHT ON BIT 20 @ 5830.00000 0 @ 6600.00000 7.1 11.70029 KLBS ROTARY RPM 144 @ 6597.00000 78 @ 6732.00000 135.1 140 71625 RPM PUMP PRESSURE 2000 @ 6717.00000 1327 @ 6314.00000 1739.2 1969.10488 PSI DRILLING MUD REPORT DEPTH 5830' MW 8.8 VIS 40 PV 8 YP 14 FL 4.6 Gels 6/6/8 CL- 9000 FC 1/- SOL 2.1 SD - OIL - MBL - pH 9.4 Ca* 120 CCI MWD SUMMARY INTERVAL TO TOOLS GAS SUMMARY (units) HIGH LOW AVERAGE DITCH GAS 107 @ 6190.00000 1 @ 6725.00000 61 2 TRIP GAS - CUTTING GAS @ @ WIPER GAS - CHROMATOGRAPHY (ppm) SURVEY - METHANE (C -1) 107773 @ 6069.00000 200 @ 6725.00000 10865.5 CONNECTION GAS HIGH 2 1111 ETHANE (C -2) 461 @ 6045.00000 0 @ 6445.00000 15.1 AVG 1 PROPANE (C -3) 0 @ 6786.00000 0 @ 6786.00000 0.0 CURRENT 1 BUTANE (C -4) 0 @ 6786.00000 0 @ 6786 00000 0.0 CURRENT BACKGROUND /AVG 0 PENTANE (C -5) 0 @ 6786.00000 0 @ 6786 00000 0.0 HYDROCARBON SHOWS NO GAS SHOWS THE LAST 24 HOURS INTERVAL LITHOLOGY/REMARKS GAS DESCRIPTION LITHOLOGY SAND, SANDSTONE, CONGLOMNERATE SAND, TUFF /ASH PRESENT LITHOLOGY 6785' = CONGLOMERATE SAND 30 %, ASH 30%, SAND 10% SANDSTONE 10 %, CONGLOMERATE 10 %, CARBON SHALE 10% DAILY ACTIVITY SUMMARY DRILL FORMATION TO 6786', CIRCULATE AND CONDITION THE HOLE, PUMP A HI VIS SWEEP, WIPER TRIP TO 5271', HOLE NOT TIGHT, SERVICE THE RIG EPOCH PERSONNEL ON BOARD BROWNE, WINSLOW + 2 SC DAILY COST $4265 DML. $1265 RW REPORT BY LEES F. BROWNE JR. III file: / /Z: \M -10 \Morn rpts \20100204.htm 2/5/2010 Daily Report Page 1 of 1 CHEVRON • DAILY WELLSITE REPORT mil EPOCH LOGO TBU M -10 REPORT FOR HAYNES /HAUCKS DATE Feb 05, 2010 DEPTH 7520 00000 PRESENT OPERATION CIRC @ TD TIME 24 HOURS YESTERDAY 6786.00000 24 HOUR FOOTAGE 734' CASING INFORMATION 7" @ 5789' DEPTH INCLINATION AZIMUTH VERTICAL DEPTH SURVEY DATA 7042' 91 89 2.71 4561.92' BIT INFORMATION INTERVAL CONDITION REASON NO. SIZE TYPE S/N JETS IN OUT FOOTAGE HOURS T /B/C PULLED 8 6.125" STC MS1613 JD2642 6X12 5830 7520 1690 29:02 DRILLING PARAMETERS HIGH LOW AVERAGE CURRENT AVG RATE OF PENETRATION 190.9 @ 8789.00000 2.2 @ 6901.00000 99 2 104.68768 FT/HR SURFACE TORQUE 13382 41; 7511.00000 9241 @ 6912 00000 12088 1 13318.90430 AMPS WEIGHT ON BIT 12 @ 6914.00000 0 @ 7078.00000 8.1 8.84804 KLBS ROTARY RPM 160 @ 8908.00000 84 @ 6913 00000 137.1 136.24001 RPM PUMP PRESSURE 2234 41; 6924.00000 1325 @ 6789.00000 2016.0 2119.23315 PSI DRILLING MUD REPORT DEPTH 6785' MW 8.8 VIS 41 PV 7 YP 20 FL 4.5 Gels 8/9/9 CL- 8000 FC 1/- SOL 17 SD - OIL 0.5 MBL 1.5 pH 9.8 Ca+ 160 CCI MWD SUMMARY INTERVAL TO TOOLS GAS SUMMARY (units) HIGH LOW AVERAGE DITCH GAS 104 @ 7226.00000 1 @ 6913.00000 58.0 TRIP GAS - CUTTING GAS 0 @ 7520.00000 0 @ 7520.00000 0.0 IPER GAS 12 @ 6793 CHROMATOGRAPHY (ppm) SURVEY - METHANE (C -1) 20035 @ 6939.00000 356 @ 6913.00000 8968.3 CONNECTION GAS HIGH 1 411) ETHANE (C -2) 71 @ 6939.00000 0 @ 7069.00000 3 9 AVG 1 PROPANE (C -3) 0 @ 7520.00000 0 @ 7520.00000 0.0 CURRENT 1 BUTANE (C -4) 0 @ 7520.00000 0 @ 7520 00000 0.0 CURRENT BACKGROUND /AVG 3 CIRC PENTANE (C -5) 0 @ 7520.00000 0 @ 7520.00000 0.0 HYDROCARBON SHOWS NO LARGE GAS KICKS THE LAST 24 HOURS INTERVAL LITHOLOGY /REMARKS GAS DESCRIPTION LITHOLOGY SAND, SANDSTONE, CONGLOMERATE SAND, TUFFACEOUS SAND, TUFF, ASH, TUFFACEOUS SILT, CARBONACEOUS SHALE PRESENT LITHOLOGY 7520' = SAND 100% DAILY ACTIVITY SERVICE THE TOP DRIVE AT THE SHOE, PICK UP 3.5" DRILL PIPE, TRIP IN THE HOLE TO 8702', WASH AND REAM TO 6793', WIPER GAS WAS 12 UNITS, DRILL FORMATION TO SUMMARY 7520', CIRCULATE AND CONDITION THE HOLE BOTTOMS UP, PULL ONE STAND AND CIRCULATE BOTTOMS UP EPOCH PERSONNEL ON BOARD BROWNE, WINSLOW + 2 SC DAILY COST $4265 DML, $1265 RW REPORT BY LEES F. BROWNE JR. III file: / /Z: \Chevron\20100205.htm 2/6/2010 Daily Report Page 1 of 1 CHEVRON • DAILY WELLSITE REPORT IN EPOCH LOGO TBU M -10 REPORT FOR HAYNES /HAUCKS DATE Feb 08, 2010 DEPTH 7520.00000 PRESENT OPERATION CLEAN MUD SYSTEM TIME 24 HOURS YESTERDAY 7520.00000 24 HOUR FOOTAGE 0 CASING INFORMATION 7" @ 5789' DEPTH INCLINATION AZIMUTH VERTICAL DEPTH SURVEY DATA 7520' 89.49 2.99 4555.87 BIT INFORMATION INTERVAL CONDITION REASON NO. SIZE TYPE S/N JETS IN OUT FOOTAGE HOURS T /B /C PULLED 8 6.125" STC MSI613 JD2642 8X12 5830 7520 1690 29:02 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 7520' MW 8.8+ VIS 37 PV 6 YP 15 FL 4.0 Gels 8/6/7 CL- 8000 FC 1/- SOL 2.2 SD - OIL - MBL 1.5 pH - Ca+ 160 CCI MWD SUMMARY INTERVAL TO TOOLS GAS SUMMARY (units) HIGH LOW AVERAGE DITCH GAS 20 @ WG 1 @ CIRC 2 CIRC TRIP GAS - CUTTING GAS @ @ WIPER GAS 20 CHROMATOGRAPHY (ppm) SURVEY - METHANE (C -1) @ @ CONNECTION GAS HIGH - III ETHANE (C -2) @ @ AVG - PROPANE (C -3) @ @ CURRENT - BUTANE (C -4) @ @ CURRENT BACKGROUND /AVG 0 PENTANE (C -5) @ @ HYDROCARBON SHOWS INTERVAL LITHOLOGY /REMARKS GAS DESCRIPTION LITHOLOGY PRESENT LITHOLOGY 7520' = SAND 100% DAILY CIRCULATE AND CONDITION THE HOLE, TRIP OUT OF THE HOLE FROM 7365' TO 5743' WITH A 25K OVERPULL AT 5890', WORK DRILL PIPE THROUGH AND OK, SERVICE THE RIG, ACTIVITY MONITOR THE WELL ON THE TRIP TANK = 2.4 BBLS /HOUR, TRIP IN THE HOLE TO 7466', CIRCULATE AND CONDITION AND WASH DOWN TO 7520' AND CIRCULATE BOTTOMS UP, SUMMARY W PER GAS WAS 20 UNITS, DISPLACE TO COMPLETION FLUIDS, PULL OUT OF THE HOLE TO 5743' AND CLEAN OUT THE MUD SYSTEM AND MONITOR THE WELL = 3.2 BBL/HR LOSS, CLEAN OUT THE MUD SYSTEM AND DRAIN AND FLUSH ALL PIT LINES. EPOCH PERSONNEL ON BOARD BROWNE, WINSLOW + 2 SC DAILY COST $4265 DML. $1265 RW REPORT BY LEES F. BROWNE JR. S file: / /Z:\M -10 \Morn rpts\20100206.htm 2/7/2010 Daily Report Page 1 of 1 CHEVRON • DAILY WELLSITE REPORT n EPOCH LOGO M -10 REPORT FOR HAYNES /HAUCK DATE Feb 07, 2010 DEPTH 7520.00000 PRESENT OPERATION CIRCULATE AND FILTER BRINE FLUID TIME 24 HOURS YESTERDAY 7520 00000 24 HOUR FOOTAGE 0 CASING INFORMATION 7" @ 5789' DEPTH INCLINATION AZIMUTH VERTICAL DEPTH SURVEY DATA 7520' 89.49 2.99 4555.87' BIT INFORMATION INTERVAL CONDITION REASON NO SIZE TYPE S/N JETS IN OUT FOOTAGE HOURS T /B/C PULLED 8 6.125" STC MS1613 JD2642 6X12 5830 7520 1690 29:02 DRILLING PARAMETERS HIGH LOW AVERAGE CURRENT AVG RATE OF PENETRATION @ g FT /HR SURFACE TORQUE g g AMPS WEIGHT ON BIT g g KLBS ROTARY RPM g g RPM PUMP PRESSURE g @ PSI DRILLING MUD REPORT DEPTH 7520' MW 8.8 VIS 28 PV - YP - FL - Gels - CL- 40000 FC - SOL - SD - OIL 0 MBL - pH - Ca+ - CCI MWD SUMMARY INTERVAL TO TOOLS GAS SUMMARY (units) HIGH LOW AVERAGE DITCH GAS 2 g CIRC 0 @ CIRC 1 TRIP GAS - CUTTING GAS @ @ WIPER GAS - CHROMATOGRAPHY (ppm) SURVEY - METHANE (C -1) g g CONNECTION GAS HIGH _ III ETHANE (C -2) g g AVG - PROPANE (C -3) g CURRENT - BUTANE (C -4) g (rD CURRENT BACKGROUND /AVG 2 PENTANE (C -5) g g HYDROCARBON SHOWS NO SHOWS THE LAST 24 HOURS INTERVAL LITHOLOGY /REMARKS GAS DESCRIPTION LITHOLOGY PRESENT LITHOLOGY 7520' = 100% SAND DAILY ACTIVITY CHANGE OUT MUD SYSTEM, PUMP BLEACH, FLUSH CAUSTIC THROUGH OUT THE PITS, LINES AND RINSE SHAKERS, BLOW DOWN ALL LINES, CLEAN PITS #1 -4, MIX AND SUMMARY BUILD 6% KCL IN PITS #1 -4, CIRCULATE AND CONDITION g 8 BPM, RIG DOWN EPOCH GAS ENSOR AND INSTALL EPOCH "STAND ALONE" GAS SYSTEM EPOCH PERSONNEL ON BOARD BROWNE, WINSLOW DAILY COST $4340 DML, $1265 RW REPORT BY LEES F. BROWNE JR. • file: / /Z: \M -10 \Morn rpts\20100207.htm 2/8/2010
