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Marathon Alaska Production LLC Alaska Asset Team m Marathon P.O. Box 1949 ASARATHON Alaska Production LLC Kenai, AK 99611 Telephone 907/283-1371 Fax 907/283-1350 July 12, 2011 Guy Schwartz Alaska Oil & Gas Conservation Commission 333 W 7th Ave Anchorage, Alaska 99501 Field: Kenai Gas Field SCOW MAR 14 201? Dear Mr. Schwartz, Submitted for your records is the Wellview cementing and frac information for KBU 11-8x well. Also included are Cement Bond Logs for: • KBU 11-7 • KBU 11-8x • KBU 11-8Y • KBU 22-6 • KBU 24-7x 2cG, CZ Please contact me at (907)283 -1371 if you have any questions or need additional information. Sincerely, " d ..Q/U'i)"U ' Kevin J. Skiba Regulatory Compliance Representative Enclosures: Wellview Reports cc: Houston Well File 5 CBL logs Kenai Well File (2) KJS ~ i Im~lge Project Well History File Cover Page XI-IVZE 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 spec:iaf rescan activity or are viewable by direct inspection of the file. ~~Q ~ - ~,~,~ Well History File Identifier Organizing (done) ^ Two-sided III (I'lll II III II III ^ Rescan Needed III IIIIII II II III III RE CAN DIGITAL DATA OVERSIZED (Scannable) olor Items: ^ Diskettes, No. ^ Maps: Greyscale Items: ^ Other, No/Type: ^ Other Items Scannable by a Large Scanner ^ Poor Quality Originals: OVERSIZED (Non-Scannable) ^ Other: ^ Logs of various kinds: NOTES: ^ Other:: BY: Maria Date: ~ ~ 1 ~ ~ !s/ Project Proofing IIIIIIIIIIIIII IIIII BY: Maria Date: ~ ~ ~ ~,/ /s/ r ion ~ x = ~ ~~~ + ~ ~ = T TAL PAGE ~ ~~ Scann-ng Prepa at 30 O S ~~^; (Count does not include cover sheet) BY: Maria Date: ~ V ~ /s! Production Scannin III IIIIII IIIII II III 9 Stage 1 Page Count from Scanned Flle: -~~~=t- (Count does include cover heat) Page Count Matches Number in Scanning Preparation: YES NO BY: Maria Date: ~ ~, ~ /s/ 111 '~ 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. II I IIlI II I II II IIIII ReScanned III II'IIIIIII) II III BY: Maria Date: /s/ Comments about this file: Quality Checked III II IIII III IIII III P P P 10/6/2005 Well History File Cover Page.doc • .~ . ~~. :~ ,~-~~> r~ { ~~ ~ F. 4~ Y f.» n,. ~', e. ~v ~. '~' ~ c ~~ rl w - a(a ~t" - °5~; ~' ~. ~ " xr MICROFILMED 6/30/2010: DO .NOT P LAC E ANY NEW MATERIAL UNDER THIS PAGE C:\temp\Temporary Internet Files\OLK9\Microfilm_Marker.doc ~ ~ ~ DATA SUBMITTAL COMPLIANCE REPORT 11 /18/2008 Permit to Drill 2061270 Well Name/No. KENAI BELUGA UNIT 24-7X Operator MARATHON OIL CO API No. 50-133-20564-00-00 MD 8303 TVD 7550 Completion Date 2/11/2007 Completion Status 1-GAS Current Status 1-GAS UIC N REQUIRED INFORMATION Mud Log No Samples No Directional Surve Yes DATA INFORMATION Types Electric or Other Log s Run: SP/GR-IEL-Density/Neutron-Sonic-Single Arm Caliper, MFTs. (data taken from Logs Portion of Master Well Data Maint Well Log Information: Log/ Electr Data Digital Dataset Log Log Run Interval OH / Type Med/Frmt Number Name Scale Media No Start Stop CH Received Comments C Las ~88 Induction/Resistivity 6068 8266 Open 12/14/2006 LAS, Mudlogs, Graphics, II Morning Reports, Well Cores/Samples Information: Name ADDITIONAL INFORMATION Well Cored? Y ~N Chips Received? ~Y7-N- Analysis ~- Received? Comments: Compliance Reviewed By: Interval Start Stop Sent Received Daily History Received? Formation Tops Sample Set Number Comments t~/ N ~/ N Date: ~~ a :7 M Marathon MARATHON OiI Company November 12, 2008 Mr. Tom Maunder Alaska Oil & Gas Conservation Commission 333 W 7th Ave Anchorage, Alaska 99501 Reference: 10-404 Report of Sundry Well Operations Field: Kenai Gas Field Well: Kenai Beluga Unit 24-7x Dear Mr. Maunder: Marathon Oil Company Alaska Asset Team P.O. Box 1949 Kenai, AK 99611 Telephone 907/283-1371 Fax 907/283-1350 ~~ Attached for your records is the Report of Sundry Well Operations, 10-404, for KBU 24-7x well. This report covers the work performed to run a 3/8" capillary string to mitigate water loading. The capillary string was installed on 11-01-08 and set at a depth of 7,965' MD. All work was completed under Sundry #308-337. KBU 24-7x is presently flowing at 2840 mcf at 845 psi Please call me at (907) 283-1371 if you have any questions or need additional information. Sincerely, ~~~1L~~ Kevin J. Ski a Engineering Technician Enclosures: 10-404 Report of Sundry Well Operations cc: Houston Well File Operations Summary Kenai Well File Current Well Schematic KJS t STATE OF ALASKA ° ,~ ALAS~OIL AND GAS CONSERVATION COMMON ~ ~ REPORT OF SUNDRY WELL OPERATIO~$ 1. Operations Abandon Repair Well Plug Perforations Stimulate Other ° ~ Ins(all Capillary Performed: Alter Casing ^ Pull Tubing^ Perforate New Pool ^ Waiver^ Time Extension^ String Change Approved Program ^ Operat. Shutdown^ Perforate ^ Re-enter Suspended Well^ 2.Operator Marathon Oil Company m N 4. Well Class Before Work: 5. Permit to Drill Number: a e: Development Q ~ Exploratory^ 206-127 3. Address: p0 Box 1949 Stratigraphic ^ Service^ 6. API Number: Kenai Alaska, 99611-1949 50-133-20564-00-00 7. KB Elevation (tt): 9. Well Name and Number: 87' (21' AGL) ~ Kenai Belu a Unit 24-7x 8. Property Designation: 10. Field/Pool(s): ADL - 028142 ~ Kenai Gas Field I Beluga 8. T onek Formations 11. Present Well Condition Summary: Total Depth measured 8,303' ~ feet Plugs (measured) NA true vertical 7,550' - feet Junk (measured) NA Effective Depth measured 8,211' - feet true vertical 7,45g' . feet Casing Length Size MD TVD Burst Collapse Structural Conductor 140' 20" 161' 161' 3,080 psi 1,500 psi Surface 1,474' 13-3/8" 1,627' 1,495' 3,450 psi 1,950 psi Intermediate 5,295' 9-5/8" 6,068' 5,316' 5,750 psi 3,090 psi Production 7,475' 3-1/2" 8,249' 7,496' 10,160 psi 10,540 psi Liner Perforation depth: Measured depth: 7,019' - 8,141' True Vertical depth: 6,266' - 7,388' Capillary String 3/8" 2205 Stainless Steel 7,965' Tubing: (size, grade, ii< MD) Production String 3-1/2" L-80 8,249' Packers and SSSV (type and measured depth) NA NA 12. Stimulation or cement squeeze summary: Intervals treated (measured): Installed a 3l8" Capillary String to a depth of 7,965'. Treatment descriptions including volumes used and final pressure: 13. Representative Daily Average Production or Injection Data Oil-Bbl Gas-Mcf Water-Bbl Casing Pressure Tubing Pressure Prior to well operation: 0 2,975 6.7 70 853 Subsequent to operation: 0 2,840 8.3 70 845 14. Attachments: 15. Well Class after work: Copies of Logs and Surveys Run Exploratory ^ Development ~ - Service ^ Daily Report of Well Operations X 16. Well Status after work: Oil ^ Gas ~ - WAG ^ GINJ ^ WlNJ ^ WDSPL ^ 17. 1 hereby certify that the foregoing is true and correct to the best of my knowledge. Sundry Number or N/A if C.O. Exempt: 308-337 Contact Kevin Skiba (907) 283-1371 Printed Name Kevin J. Skiba Title Engineering Technician Signature ~ ~ Phone (907) 283-1371 Date November 12, 2008 v Form 10-404 Revised 04/2006 Submit Original Only 50-133-20564-00-00 ADL - 028142 n: 87' (21' AGL) 60° 26' 37.99" N 151 ° 14' 40.97" W 275,211.828 2,356,292.642 9/14/2006 10/2!2006 d: 10/10/2006 06:00 hrs @ 5,658' MD 318" 2205 Stainless Steel Top Bottom MD 0' 7,965' ND 0' 7,212' - Ceramic flapper valves below each module as follows: Module 9 = 7,035' Module 8 = 7,319' Module 7 = 7,574' Module 6 = 7,616' Module 5 = 7,883' Module 4 = 7,976' Module 3 = 8,018' Module 2 = 8,088' Module 1 = NA KBU 24-7x Pad 41-18 442' FNL, 599' FEL, Sec. 18, T4N, R11W, S.M. *.': i~ 'r ~" t• '.« • ~~.: +~r ' C ~1' ~ '-.~ ~`, M ~A~nioN Conductor 20" K-55 133 ppf Top Bottom MD 0' 161' TVD 0' 161' 13-3/8" K-55 68 ppf BTC Top Bottom MD 0' 1,627' TVD 0' 1,495' 16" hole Cmt w/ 520 sks (230 bbl) of 12.0 ppg Class G /Type 1 Cmt 9-518" L-80 40 ppf BTC Top Bottom MD 0' 6,068' TVD 0' 5,316' 12-1/4" hole Cmt w/ T??sks (105 bbls) @ 12.5 ppg, Class G lead and w/ ??7 sks (84.5 bbls) @ 13.5 ppg, Class G tail 3-112" L-80 9.3 ppf EUE Top Bottom 8rd MD 0' 8,249' TVD 0' 7,496' 8-112" hole Cmt w/ 296 sks (96 bbls) @ 13.5 ppg, Class G lead and w/ 789 sks (136 bbls) @ 15.8 ppg, Class G tail - 9 Excape modules placed - control line fired modules 2 thru 9 - Green control line fired module 1 - Ceramic flapper valves below each module except for module 1 TD PBTD 8,303' MD 8,211' MD 7,550' TVD 7,458' TVD Module 9 = 7,019' - 7,029' (Beluga) 2/10/2007 Module 8 = 7,303' - 7,313' (Beluga) 2/10/2007 Module 7 = 7,560' - 7,570' (Beluga) 2/10/2007 Module 6 = 7,602' - 7,612' (Beluga) 2/10/2007 Module 5 = 7,866' - 7,876' (Beluga) 2/10/2007 Module 4 = 7,960' - 7,970' (Beluga) 2/10/2007 Module 3 = 8,002' - 8,012' (Tyonek) 2/10/2007 Module 2 = 8,072' - 8,082' (Tyonek) 2/9/2007 Module 1 = 8,131' - 8,141' (Tyonek) 2/6/2007 Well Name 8 Number: Kenai Beluga Unit 24-7x Lease: Kenai Gas Field County or Parish: Kenai Peninsula Borough State: Alaska Country: USA Perforations (MD): 7,019' - 8,141' (TVD): 6,266' - 7,388' Angle/Perfs: - 1.6° Angle @ KOP and Depth: 3.5° @ 325' MD Dated Completed: 2/6/2007 Completion Fluid: 6% KCL Revised by: Nancy Henry Last Revison Date: 11/7/2008 11/12/2008 2:25 PM ~ ~ ~~~ ~ d d SARAH PAUN G V O ERNOR CO1~T5ERVA A` Ip CO~~ S UH 333 W. 7th AVENUE, SUITE 100 i~il~ii-7 I~ls ANCHORAGE, ALASKA 99501-3539 PHONE (907) 279-1433 FAX (907) 276-7542 Kevin Skiba Engineering Technician Marathon Oil Company PO Box 1949 Kenai AK 996 1 1-1 949 Re: Kenai Gas Field, Upper'I~onek/Beluga Gas Pool, 24-7x Sundry Number: 308-337 Dear Mr. Skiba: Enclosed is the approved Application for Sundry Approval relating to the above referenced well. Please note the conditions of approval set out in the enclosed form. When providing notice for a representative of the Commission to witness any required test, contact the Commission's petroleum field inspector at (907) 659-3607 (pager). As provided in AS 31.05.080, within 20 days after written notice of this decision, or such further time as the Commission grants for good cause shown, a person affected by it may file with the Commission an application for rehearing. A request for rehearing is considered timely if it is received by 4:30 PM on the 23rd day following the date of this letter, or the next working day if the 23rd day falls on a holiday or weekend. A person may not appeal a Commission decision to Superior Court unless rehearing has been requested. Sincerely, Daniel T. Seamount, Jr. Chair DATED this~day of September, 2008 Encl. M Marathon MARATHON Oil Company September 17, 2008 Mr. Tom Maunder Alaska Oil & Gas Conservation Commission 333 W 7th Ave Anchorage, Alaska 99501 Reference: 10-403 Report of Sundry Well Operations Field: Kenai Gas Field Welt: Kenai Beluga Unit 24-7x Dear Mr. Maunder: Marathon Oil Company Alaska Asset Team P.O. Box 1949 Kenai, AK 99611 Telephone 907/283-1371 Fax 907/283-1350 ~ .a ~ r r.. :: ~ a ~. %i?:J t Marathon proposes to run a 3/8" capillary string in KBU 24-7x to mitigate water loading. Setting depth of the capillary string should be approximately 7,850' MD. Please call me at (907) 283-1371 if you have any questions or need additional information. Sincerely, Kevin J. Skiba Engineering Technician Enclosures: 10-403 Report of Sundry Well Operations Current Well Schematic Detailed Operations Program cc: AOGCC Houston Well File Kenai Well File KJS MDD ~ STATE OF ALASKA a ~~~-~ O~'~ALAS~OIL AND GAS CONSERVATION COMM~101~~ ~= APPLICATION FOR SUNDRY APPROVALS ~a 20 AAC 25.280 1~ ~ - ' , ... ~ _ dt\ 1. Type of Request: Abandon ^ Suspend ^ Operational shutdown^ Perforate ^ ~ Waives- Other ^Q Alter casing ^ Repair well ^ Plug Perforations ^ Stimulate ^ Time Extension ^ Install Capillary Change approved program ^ Pull Tubing ^ Perforate New Pool ^ Re-enter Suspended Well ^ String 2. Operator Name: Marathon Oil Company 4. Current Well Class: 5. Permit to Drill Number: Development ^ , Exploratory ^ 206-127 3. Address: p0 Box 1949 Stratigraphic ^ Service ^ 6. API Number: Kenai Alaska, 99611-1949 50-133-20564-00-00' 7. If perforating, closest approach in pool(s) opened by this operation to nearest 8. Well Name and Number: property line where ownership or landownership changes: i E S ? ^ ^~ Kenai Beluga Unit 24-7x ng pac xception Required Yes No 9. Property Designation: ~ 10. KB Elevation (ft): 11. Field/Pool(s): - 028142 ~87' (21' AGL) Kenai Gas Field /Beluga $ Tyonek Formations 12. PRESENT WELL CONDITION SUMMARY Total Depth MD (ft): Total Depth TVD (ft): Effective Depth MD (ft): Effective Depth NO (ft}: Plugs (measured): Junk (measured): 8,303' - 7,550' - 8,211' _ 7,458' - NA NA Casing Length Size MD TVD Burst Collapse Structural Conductor 140' 20" 161' 161' 3,060 psi 1,500 psi Surface 1,474' 13-3/8" 1,627' 1,495' 3,450 psi 1,950 psi Intermediate 5,295' 9-5/8" 6,068' 5,316' 5,750 psi 3,090 psi Production 7,475' 3-1 /2" 8,249' 7,496' 10,160 psi 10,540 psi Liner Perforation Depth MD (ft): Perforation Depth TVD (ft): Tubing Size: Tubing Grade: Tubing MD (ft): 7,019' - 8,141' 6,266' - 7,388' 3-1/2" L-80 8,249' Packers and SSSV Type: Packers and SSSV MD (ft): NA NA 13. Attachments: Description Summary of Proposal ^ 14. Well Class after proposed work: Detailed Operations Program Q BOP Sketch ^ Exploratory ^ Development ~ ' Service ^ 15. Estimated Date for 16. Well Status after proposed work: Commencing Operations: October 3, 2008 Oil ^ Gas ^~ - Plugged ^ Abandoned ^ 17. Verbal Approval: Date: WAG ^ GINJ ^ WINJ ^ WDSPL ^ Commission Representative: 18. I hereby certify that the foregoing is true and correct to the best of my knowledge. Contact Kevin Skiba (907) 283-1371 Printed Name Kevin J. Skiba Title Engineering Technician Signature hone Date (907) 283-1371 September 17, 2008 COMMISSION USE ONLY g~ 3~~ Conditions of approval: Notify Commission so that a representative may witness Sundry Number: V Plug Integrity ^ BOP Test ^ Mechanical Integrity Test ^ Location Clearance ^ Other: Subsequent Form Required: ~[ APPROVED BY ) j~ Approved by: ~ ~~~ COMMISSIONER THE COMMISSION Date: G/ Y .. r - Form 10-403 Revised 06/2006 _ - __ ~~Ci~~`~~~L Submit in Duplicate 50-133-20564-00-00 ADL-028142 is 87' (21' AGL) 60° 26' 37.99" N 151 ° 14' 40.97" W 275,211.828 2,356,292.642 9/14/2006 10/2/2006 d: 10/10/2006 06:00 hrs Estimated Top of Cement: @ 5,658' MD (500' above 9-5/8" shoe) KBU 24-7x Pad 41-18 442' FNL, 599' FEL, Sec. 18, T4N, R11W, S.M. `.. >> - Ceramic flapper valves b each module as follows: Module 9 = 7,035' Module 8 = 7,319' Module 7 = 7,574' Module 6 = 7,616' Module 5 = 7,883' Module 4 = 7,976' Module 3 = 8,018' Module 2 = 8,088' Module 1 = NA M M~w-nroN Conductor 20" K-55 133 ppf Top Bottom MD 0' 161' TVD 0' 161' Surface Casino 13-318" K-55 68 ppf BTC Top Bottom MD 0' 1,627' ND 0' 1,495' 16" hole Cmt w/ 520 sks (230 bbl) of 12.0 ppg Class G /Type 1 Cmt Intermediate Casino 9-518" L-80 40 ppf BTC Top Bottom MD 0' 6,068' TVD 0' 5,316' 12-114" hole Cmt w/ ???sks (105 bbls) @ 12.5 ppg, Class G lead and wl ???sks (84.5 bbls) @ 13.5 ppg, Class G tail 3-1/2" L-80 9.3 ppf EUE Top Bottom 8rd MD 0' 8,249' TVD 0' 7,496' 8-1 /2" hole Cmt w/ 296 sks (96 bbls) @ 13.5 ppg, Class G lead and wl 789 sks (136 bbls) @ 15.8 ppg, Class G tail TD PBTD 8,303' MD 8,211' MD 7,550' TVD 7,458' TVD Excaoe System Details: - 9 Excape modules placed - control line fired modules 2 thru 9 - control line fired module 1 - Ceramic flapper valves below each module except for module 1 Perfs MD (RKB) (Beluaa/Tvonek Zones): Module 9 = 7,019' - 7,029' (Beluga) 2/10/2007 Module 8 = 7,303' - 7,313' (Beluga) 2/10/2007 Module 7 = 7,560' - 7,570' (Beluga) 2/10!2007 Module 6 = 7,602' - 7,612' (Beluga) 2/10/2007 Module 5 = 7,866' - 7,876' (Beluga) 2/10/2007 Module 4 = 7,960' - 7,970' (Beluga) 2/10/2007 Module 3 = 8,002' - 8,012' (Tyonek) 2/10/2007 Module 2 = 8,072' - 8,082' (Tyonek) 2/9/2007 Module 1 = 8,131' - 8,141' (Tyonek) 2/6/2007 Well Name & Number: Kenai Beluga Unit 24-7x Lease: Kenai Gas Field County or Parish: Kenai Peninsula Borough State: Alaska Country: USA Perforations (MD): 7,019' - 8,141' (TVD): 6,266' - 7,388' Angle/Perfs: - 1.6° Angle @ KOP and Depth: 3.5° @ 325' MD Dated Completed: 2/6/2007 Completion Fluid: 6% KCL Revised by: Kevin Skiba Last Revison Date: 9/17/2008 9/17/2008 10:29 AM 2008 Capillary String Installation Page 1 2008 Capillary String Installation Program #2 KGF, SU, NGF KBU 24-7X -Requested KBU 14-6Y -Requested KBU 31-7RD -Requested SU 41-15RD -Requested FC 3 -Requested NS 3 -Requested NS 1 -Requested Objective 1) Install six new CICM's (injection skids) with 545 gallon totes of foamer at wellheads. 2) Install capillary strings (3/8" 2205 0.049" WT) into seven wells for delivering foamer to alleviate liquid loading. Procedure Companies involved: BJDC, BJCS, UOSS, Senette's IT group and electricians TVD Setting Setting Depth Setting String Depth Above Depth Spool Setting at max Estimated Maximum Perf Tag Fill Under PT Max Order Well Len th Depth perf Fluid Level Depth Depth Water Well Notes ID ran 1 KBU 24-7X 9000' 7965' 7850' 8141' 8165' 300' 115' Excape 1.75 2 KBU 14-6Y 8000' 7050' 7000' 7138' 7132' 82 50' Exca a 1.69 3 KBU 31-7RD 8000' 7220' 7120' 7534' 7392' 172 100' 1.75 4 SU 41-15RD 12000' 10400' 10300' 11506' 11498' 98 100' Exca a 1.75 5 FC 3 10000' 2720' 2615' Gas from SS 7770' N/'~' 105' Lon strin 6 NS 3 11000' 9785' 9605 9550' 10862' 10970' 1185' 235' 4-1/2" 2 7 NS 1 9000' 8733' 6715 None 8956' 10220' 1487 0 4-1/2" 2 Installation Procedure: 1) BJCS and ASRC: (PJSM & JSA) a) Place 6 new CICM skids at listed wells (BJCS, Steve Bolton, 252-9864) - deliver with truck (Oilfield Hotshot Service, Billy Hill, 398-4827) - unload CICM from truck with loader (ASRC Hardline Group, Tony, 294-0548) -unbolt and remove CICM roof with loader and place 545 gal foamer tote with loader - replace CICM roof with boom truck (LTOSS, Tom David) and bolt roof b) Install CICM internals (BJCS, Steve Bolton, 252-9864). 2) COGZ work order (contact Senette's group a) Electrical hookup of CICM. b) Tubing hookup of CICM. .~ ~ • 2008 Capillary String Installation Page 2 3) UOSS -pull well house 4) BJDC, UOSS (PJSM and JSA): 1. Have on site: proper spool, Wayne's Well Head Adapter (long/short both), Sundry. Well Control Standards Sheet. 2. MIIZU BJ Dyna-Coil unit. 3. Shut swab valve, pull tree-cap flange, remove snap ring and OTIS blanking plug. Replace plug with WWHA (note o-ring). MU flange. 4. P/U Dyna-Coil injector with UOSS crane; install packoff assembly into 2-7/8" female connection. NOTE: a wrench or tongs maybe needed to hold the adapter 5. Set Fluid Control Valve release (set based upon TVD, but OVER) 6. MU BHA with centralizers and secure to 3/8" string. 7. SHUT IN WELL AT WING VALVE to prevent BHA from traveling into flow-tee and down flowline. NOTE: Operator or Company Supervisor may bring well back on after string is below flow-tee 8. RIH to setting depth. 9. Set Rattiguns. Leave 1.5 times SITP (or greater per BJDC) on hydraulic pack off. 10. OPEN WELL TO PRODUCTION 11. Leave remaining spool of tubing outside of well in plastic tote for soap injection skid hookup. 12. Cap tubing with a Swagelok cap and valve, pressure gauge, and HP filter. 13. Lockout Swab, Upper Master, and Lower Master as per Capstring Lockout Procedure. 14. Hookup injection line to CICM. NOTE: Start foamer at 1/2 gpd, slowly raising the level to planned rate as the week progresses. CHECK FOR FOAM RETURNS. 15. RDMO. Cleanup site. Sign-out. 5) UOSS -replace well house NOTE: When replacing well house, be careful of the tubing "bend" as it goes back inside if it extends through the roof M Marathon MARATHON Oil Company February Z0, 2007 Alaska Business Unit Domestic Production P.O. Box 196168 Anchorage, AK 99519-6168 Telephone 907/561-5311 Fax 907/5646489 DECEIVED Mr. Tom Maunder FEB 2 1 2007 Alaska Oil & Gas Conservation Commission 333 West 7th Avenue, Suite 100 Alaska Oil & Gas Cons. Commission Anchorage, Alaska 99501 Anchorage Reference: Completion Report 10-407 for Permit #206-127 Field: Kenai Gas Field /Beluga /Tyonek Well: KBU 24-7X (Pad 41-18) Dear Mr. Maunder: Enclosed please find the Well Completion Report with associated attachments for Kenai Beluga Unit Well No. 24-7X. This well has been completed cased hole with a 3.5" Excape monobore production string to surface. If additional information is required, please contact me at 713-232-9347 or 713-296-2730, or by email, JRThompson@MarathonOil.com. Sincerely, James R. Thompson Senior Completions Engineer Attachments: AOGCC Form 10-407 Directional Survey Wellbore Diagram Well Operations Summary ~~~ I~~EIVED STATE OF ALASKA ~ ~~ ~~ ALASKA~L AND GAS CONSERVATION COMMISS'~N ~;~- ~ ~' ~I~ `~ 1 207 WELL COMPLETION OR RECOMPLETION REPORT ~~i 1a. Well Status: Oil Gas ~ Plugged Abandoned^ zoAACZS.tos GINJ ^ WINJ ^ WDSPL^ No. of Completions Suspended WAG 2oAACZS.t~o 1 Other ~ ~ ~ 1b. Well Class: agChO(8g~ Development Q Explorato~rjYf Service ^ Stratigraphic Test^ 2. Operator Name: Marathon Oil Company 5. Date Comp., Sus Aband.: 2//2007 12. Permit to Drill Number: 206-127 ~ 3. Address: P. O. Box 3128, Houston, TX 77253 6. Date Spudded: 9/14/2006 13. API Number: 50-133-20564-00 4a. Location of Well (Governmental Section): Surface: 442' FNL, 599' FEL, Sec. 18, T4N, R11 W. S.M. / 7. Date TD Re , Ft~d: 10/,~~,~'2006a~' 14. WeII Name and Number: Kenai Beluga Unit 24-7X / Top of Productive Horizon: 550' FSL, 2966' FEL, Sec. 7, T4N, R11W, S.M. 8. KB Elevation (ft): 88 FT. (21' AGL) ~ 15. Field/Pool(s): Kenai Gas Field ~ Total Depth: 581' FSL, 3038' FEL, Sec. 7, T4N, R11W. S.M. 9. Plug Back Depth(MD+TVD): 8211' MD / 7458' TVD Beluga/Upper Tyonek Pool 4b. Location of Well (State Base Plane Coordinates): Surface: x- 275,211.828 y- 2,356,292.642 Zone- 4 10. Total Depth (MD +TVD): 8303' MD / 7550' TVD 16. Property Designation: ADL - 028142 / TPI: x- 272,864.24 y- 2,357,328.69 Zone- 4 Total Depth: x- 272,793.10 y- 2,357,361.40 Zone- 4 11. Depth Where SSSV Set: N/A 17. Land Use Permit: NA 18. Directional Survey: Yes ~ No 19. Water Depth, if Offshore: N/A feet MSL 20. Thickness of Permafrost: NA 21. Logs Run: SP/GR-IEL-Density/Neutron-Sonic-Single Arm Caliper. MFTs. 22. CASING, LINER AND CEMENTING RECORD CASING WT. PER GRADE SETTING DEPTH MD SETTING DEPTH TVD HOLE SIZE CEMENTING RECORD AMOUNT FT TOP BOTTOM TOP BOTTOM PULLED 20" 133 K-55 0 141' 0 141' Driven NA NA 13 3/8" 68 K-55 0 1627' 0 1495' 16" 520 sx Class G Type 1 NA 9 5/8" 40 L-80 0 6068' 0 5317' 12 1 /4" 105 bbls Class G lead 84.5 bbls Class G tail NA 3 1/2" 9.3 L-80 0 8249' 0 7496' 8 1/2" 296 sx Class G lead 789 sx Class G tail 85,000 23. Perforations open to Production (MD +TVD of Top and Bottom 24. TUBING RECORD Interval, Size and Number; if none, state "none"): SIZE DEPTH SET (MD) PACKER SET (MD) MD RKB TVD (RKB 3 1/2" 824x' NA Module 1: 8131-8141 7378-7388 Module 2: 8072-8082 7319-7329 25. ACID, FRACTURE, CEMENT SQUEEZE, ETC. Module 3: 8002-8012 7249.7259 DEPTH INTERVAL (MD) AMOUNT AND KIND OF MATERIAL USED Module 4: 7960-7970 7207-7217 Module 1: 8131-8141 BJ Lightning V 1800 wtr base; placed 44352 Ibs prop Module 5: 7866-7876 7113-7123 Module 2: 8072-8082 BJ Lightning V 1800; screened out; placed 4479 Ibs prop Module 6: 7602-7612 6849-6859 Module 3: 8002-8012 Did not treat. Placed 800 Ibs prop Module 7: 7560-7570 6807-6817 Module 4: 7960-7970 BJ LigMning V 1800 wtr based; placed 22220 Ibs prop Module 8: 7303-7313 6550-6560 Module 5: 7866-7876 BJ LigMning V 1800 wtr based; placed 34210 Ibs prop Module 9: 7019-7029 6266-6276 Module 6: 7602-7612 BJ LigMning V 1800 wtr based; placed 28033 Ibs prop Continued on back 26. PRODUCTION TEST Date First Production: February 11, 2007 Method of Operation (Flowing, gas lift, etc.): FlOwln Date of Test: 2/16/2007 Hours Tested: 24 Production for Test Period Oil-Bbl: NA Gas-MCF: 5466 Water-Bbl: 53 Choke Size: 18/64 Gas-Oil Ratio: NA Flow Tubing Press. 1675 Casing Press: 0 Calculated 24-Hour Rate ~ Oil-Bbl: NA Gas-MCF: 5466 Water-Bbl: 53 Oil Gravity -API (corr): NA 27. CORE DATA ~, __. - -,-~, Brief description of lithology, porosity, fractures, apparent dips and presence of oil, gas or water (attach separate sheet, if necessary "' ,~:,. ` °~ Submit core chips; if none, state "none". ~ ~ ~~~ None .~R~IEI~ Q~~GtNAL .__. _ ~_.I-tyN~~~c Form 10-407 Revised 12/2003 CONTINUED ON REVERSE KBU 24-7X AOGCC 10-407 Cmpl.xls 2/20/2007 11:01 AM /'~ fission 28'. GEOLOGIC MARKERS 29. FORMATION TESTS NAME MD TVD Include and briefly summarize st results. List intervals tested, and attach detailed supporting data as necessary. If no tests were conducted, state Middle Beluga ~ 6112 5360 "None". Tyonek 7996 7155 Zone Top MD Top TVD Pressure ~ Lower Beluga 7020 6267 2675 Lower Beluga 7305 6552 2929 Lower Beluga 7560 6807 2903 Lower Beluga 7602 6849 3104 Lower Beluga 7868 7115 3640 Lower Beluga 7963 7210 3707 Tyonek 72-8 8003 7250 3727 Tyonek 73-1 8074 7321 3199 Tyonek 73-1 8133 7380 3458 30. List of Attachments: Directional Survey, Wellbore Diagram, Well Operations Summary 31. I hereby certify that the foregoing is true and correct to the best of my knowledge. Contact: Printed Name: James R. Thompson Title: Senior Production Engineer Signature: ~ . F' ~~----- Phone: 713-296-2730 Date: 2/20/2007 INSTRUCTIONS Genera ~ is form is designed for submitting a complete and correct well completion report and log on all types of lands and leases in Alaska. Submit a well schematic diagram with each 10-407 well completion report and 10-404 well sundry report when the downhole well design is changed. Item 1a: Classification of Service wells: Gas Injection, Water Injection, Water-Alternating-Gas Injection, Salt Water Disposal, Water Supply for Injection, Observation, or Other. Multiple completion is defined as a well producing from more than one pool with production from each pool completely segregated. Each segregated pool is a completion. Item 4b: TPI (Top of Producing Interval). Item 8: The Kelly Bushing elevation in feet above mean low low water. Use same as reference for depth measurements given in other spaces on this form and in any attachments. Item 13: The API number reported to AOGCC must be 14 digits (ex: 50-029-20123-00-00). Item 20: True vertical thickness. Item 22: Attached supplemental records for this well should show the details of any multiple stage cementing and the location of the cementing tool. Item 23: If this well is completed for separate production from more than one interval (multiple completion), so state in item 1, and in item 23 show the producing intervals for only the interval reported in item 26. (Submit a separate form for each additional interval to be separately produced, showing the data pertinent to such interval). Item 26: Method of Operation: Flowing, Gas Lift, Rod Pump, Hydraulic Pump, Submersible, Water Injection, Gas Injection, Shut-in, or Other (explain). Item 27: If no cores taken, indicate "none". Item 29: List all test information. If none, state "None". 25. ACID, FRACTURE, CEMENT SQUEEZE, ETC. DEPTH INTERVAL (MD) AMOUNT AND KIND OF MATERIAL USED Module 7: 7560-7570 BJ Lightning V 1600 water based system; placed 38670 Ibs prop Module 8: 7303-7313 BJ Lightning V 1600 water based system; placed 48600 Ibs prop Module 9: 7019-7029 BJ Lightning V 1600 water based system; placed 50132 Ibs prop KBU 24-7X AOGCC 10-407 Cmpl.xls 2/20/2007 11:05 AM MARATHON Actual Wellpath Report NaviTrak <173 - 8303'> Page 1 of 6 ~~~ BA~(ER ~Yt~-HEl~ IN`TEQ Operator ~ ~ MARATHON Oil Company Slot Slot #KBU24-7X Area Cook Inlet, Alaska (Kenai Penninsula) Well KBU24-7X 'Field Kenai Gas Field Wellbore KBU24-7X Facility Pad #41-18 '~ • 1 _. Local coordinates Grid coordinates Geographic coordinates North [feet] East [feet] Easting [US feet] Northing [US feet] Latitude [°] Longitude [°] Slot Location -321.11 -646.07 275211.83 2356292.64 60 26 37.991N 151 14 40.970W Facility Reference Pt 275863.81 2356601.51 60 26 41.154N 151 14 28.093W Field Reference Pt 270993.19 2361975.05 60 27 33.151N 151 16 07.223W Calculation method Minimum curvature Rig on Slot #KBU24-7X (RKB) to Facility Vertical Datum 87.47 feet Horizontal Reference Pt Slot Rig on Slot #KBU24-7X (RKB) to mean sea level 87.47 feet Vertical Reference Pt Rig on Slot #KBU24-7X (RKB) Facility Vertical Datum to Mud Line (Facility) 0.00 feet MD Reference Pt ' Rig on Slot #KBU24-7X (RKB) Section Origin N 0.00,E 0.00 ft `Field Vertical Reference mean sea level Section Azimuth 292.76° MARATHON Actual Wellpath Report NaviTrak <173 - 8303'> Page 2 of 6 ri~~ BAKER I~IY6NES INTEQ Operator ,. ~ ~ MARATHON Oil Company Slot Slot #KBU24-7X Area Cook Inlet, Alaska (Kenai Penninsula) Well KBU24-7X Field Kenai Gas Field Wellbore KBU24-7X Facility Pad #41-18 MD Course Length Inclination Azimuth TVD Vert Sect North East Grid East Grid North DLS Build Rate Turn Rate [feet] ]feet] [°] [°] [feet] [feet] [feet] [feet] [us survey feet] [us survey feet] [°/100ft] [°/IOOftJ [°/100ft] 0.00 0.00 0.000 0.000 0.00 0.00 0.00 0.00 275211.83 2356292.64 0.00 0.00 0.0 173.00 173.00 1.000 355.400 172.99 0.69 1.50 -0.12 275211.74 2356294.15 0.58 0.58 0.0 213.00 40.00 1.300 342.100 212.98 1.15 2.28 -0.29 275211.58 2356294.93 1.00 0.75 -33.2 271.00 58.00 1.800 318.800 270.96 2.40 3.60 -1.09 275210.81 2356296.26 1.37 0.86 -40.1 342 0 1 0 0 3 80 34 8 3 3 44 2 . 0 .0 7 3.3 0 07. 0 1. 9 5. 7 5.69 . - 75208.50 2356298.39 2.21 2.11 -15.4 392.00 50.00 5.200 296.200 391.75 9.02 7.57 -6.61 275205.36 2356300.33 4.15 3.80 -23.2 452.00 60.00 6.900 291.400 451.42 15.34 10.09 -12.41 275199.62 2356302.96 2.95 2.83 -8.0 512.00 60.00 8.700 290.000 510.86 23.48 12.95 -20.03 275192.05 2356305.97 3.02 3.00 -2.3 574.00 62.00 9.500 289.100 572.08 33.27 16.23 -29.27 275182.88 2356309.42 1.31 1.29 -1.4 634 00 60 00 10 800 291 00 14 631 43 83 19 93 39 17 2751 04 3 23 6313 31 2 30 2 . . . .7 . . . - . 7 . 5 . . .17 4.3 695.00 61.00 13.800 293.300 690.73 56.82 24.92 -51.17 275161.15 2356318.52 4.95 4.92 2.6 753.00 58.00 16.300 292.600 746.74 71.88 30.79 -65.04 27514739 2356324.65 4.32 4.31 -1.2 818.00 65.00 19.000 292.100 808.67 91.59 38.27 -83.26 275129.31 2356332.48 4.16 4.15 -0.7 880.00 62.00 20.200 291.400 867.08 112.38 45.98 -102.58 275110.14 2356340.55 1.97 1.94 -1.1 943 00 63 00 22 900 291 t 7 135 51 54 48 124 10 275088 79 ~ 2356349 45 4 29 4 29 0 4 . _ _ . ~ u . .70 . X6 . . . - . j . _ . . . 1006.00 63.00 26.400 291.100 982.92 161.78 64.06 -148.56 275064.51 2356359.49 5.57 5.56 -0.9 1069.00 63.00 29.900 291.200 1038.46 191.48 74.78 -176.28 275037.00 2356370.74 5.56 5.56 0.1 1132.00 63.00 30.900 291.800 1092.80 223.36 86.47 -205.94 275007.57 2356382.98 1.66 1.59 0.9 1196.00 64.00 30.400 292.400 1147.85 255.98 98.74 -236.17 2749 77.58 2356395.82 _ v~ 0.92 -0.78 _ 0.9 1259.00 63.00 ____. 31.00 ~ F "~ ~, .200 ~; i ~r ~ 2$8.14 110.95 -265.93 _ _ 274948.06 2 ~~ , ~,, :59 _ ~~ 0.97 0.95 _ _ -0.3 1323.00 64.00 33.100 292.400 1256.27 322.10 123.83 -297.35 274916.89 2356422.06 3.29 3.28 0.3 1385.00 62.00 35.900 292.800 1307.36 357.22 137.33 _ -329.76 274884.74 2356436.17 4.53 4.52 _ _ 0.6 1449.00 64.00 39.200 293.700 1358.09 396.21 152.74 -365.59 274849.21 2356452.25 5.23 5.16 1.4 1512.00 63.00 40.300 293.700 1406.53 436.49 168.93 -402.48 274812.63 2356469.14 1.75 1.75 0.0 MARATHON Actual Wellpath Report NaviTrak <173 - 8303'> Page 3 of 6 ri~~ BAKER F11~161~IE+~ INTEQ Operator ,. ~ ~ MARATHON Oil Company Slot Slot #KBU24-7X Area Cook Inlet, Alaska (Kenai Penninsula) Well KBU24-7X Field Kenai Cas Field Wellbore KBU24-7X Facility Pad #41-18 MD [feet] Course Length [feet] Inclination [°] Azimuth (°J TVD [feet] Vert Sect [feet] North (feet) East [feet] Grid East [us survey feet) Grid North [us survey feet] DLS [°/100ft] Build Rate [°/100ft] Turn Rate [°/100ft] 1687.00 111.00 38.000 293.200 1541.90 547.36 213.22 -504.13 274711.85 2356515.34 1.65 -1.62 -0.45 1812.00 125.00 37.100 291.800 1641.00 623.54 242.38 -574.50 274642.04 2356545.83 0.99 -0.72 -1.12 1876.00 64.00 37.000 290.800 1692.08 662.09 256.39 -610.43 274606.38 2356560.51 0.95 -0.16 -1.56 1939.00 63.00 39.400 291.700 1741.59 701.03 270.52 -646.73 274570.36 2356575.32 3.91 3.81 1.43 2000.00 61.00 39.500 291.100 1788.69 739.78 284.66 -682.82 274534.54 2356590.14 0.65 0.16 -0.98 2066.00 66.00 39.600 290.300 1839.58 781.77 299.51 -722.13 274495.52 2356605.73 0.79 0.15 -1.21 2129.00 63.00 39.600 290.700 1888.13 821.90 313.58 -759.74 274458.18 2356620.50 0.40 0.00 0.63 2255.00 126.00 38.400 291.400 1986.05 _901.16 342.05 -833.75 274384.73 2356650.37 1.01 -0.95 0.56 2318.00 63.00 38.700 292.100 2035.32 940.41 356.60 -870.21 274348.55 2356665.61 0.84 0.48 1.11 2382.00 64.00 38.900 293.400 2085.19 980.51 ( 372.11 -907.19 274311.87 2356681.81 1.31 0.31 2.03 2445.00 63.00 37.600 294.200 2134.67 1019.51 387.85 -942.88 274276.49 2356698.22 2.21 -2.06 1.27 2571.00 126.00 38.400 294.900 2233.96 1097.04 420.08 -1013.44 274206.56 2356731.78 0.72 0.63 0.56 2701.00 130.00 37.900 293.500 2336.19 1177.31 453.00 -1086.68 274133.96 2356766.07 0.77 -0.38 -1.08 2825.00 _ 124.00 39.800 293.900 2432.76 1255.08 484.27 -1157.89 274063.34 2356798.68 1.55 1.53 0.32 2952.00 _ 12'7.00 39.600 294.600 2530.47 ' 9 1336.18 517.59 -1231.86 273990.03 2356833.39 _ ~ 0.39 -0.16 0.5 3014.00 62.00 39.300 293.900 2578.35 1375.56 533.77 -1267.78 273954.42 2356850.24 0.87 -0.48 -1.13 3141.00 127.00 40.700 294.600 2675.63 1457.16 567.30 -1342.20 273880.65 2356885.18 1.16 1.10 0.55 3269.00 128.00 39.900 294.100 2773.25 1539.92 601.44 -1417.62 273805.89 2356920.73 0.67 -0.63 -0.39 3396.00 127.00 39.500 294.700 2870.97 1621.01 634.95 -1491.50 273732.66 2356955.63 0.44 -0.31 0.47 3458.00 62.00 39.300 294.900 2918.88 1660.34 651.46 -1527.23 273697.25 2356972.81 0.38 -0.32 0.32 3523.00 65.00 38.000 293.100 2969.64 1700.92 667.97 -1564.30 273660.50 2356990.02 2.64 -2.00 -2.77 3587.00 64.00 36.700 291.400 3020.52 1739.74 682.68 -1600.23 273624.85 2357005.41 2.59 -2.03 -2.66 3650.00 63.00 36.500 291.900 3071.09 1777.29 696.54 -1635.15 273590.21 2357019.92 0.57 -0.32 0.79 3712.00 62.00 36.300 292.400 3121.00 1814.08 710.41 -1669.22 273556.40 2357034.43 0.58 -0.32 0.81 MARATHON Actual Wellpath Report NaviTrak <173 - 8303'> Page 4 of 6 ri~r BAKER - N1~16MES INTEQ ~. _._.~um._ __ _._ .__...._. ~ _ . ____._ _ _ ~ _ ~_ ._ ~. . ~ , ... Operator . . _ _. MARATHON Oil Company-Slot 'Slot #KBU24-7X Area Cook Inlet, Alaska (Kenai Penninsula) Well KBU24-7X Field Kenai Gas Field Wellbore KBU24-7X Facility Pad #41-18 MD [feet] Course Length [feet] Inclination [°] Azimuth [°J TVD [feet] Vert Sect [feet] North [feet] East [feet] Grid East [us survey feet] Grid North [us survey feet] DLS [°/100ft] Build Rate [°/100ftJ Turn Rate [°/100ft] 3840.00 64.00 34.000 291.500 3225.87 1887.43 737.40 -1737.44 273488.71 2357062.70 1.28 -1.25 0.4 3903.00 63.00 33.900 291.500 3278.13 1922.61 750.29 -1770.18 273456.22 2357076.22 0.16 -0.16 0.0 3966.00 63.00 32.700 291.200 3330.79 1957.19 762.89 -1802.39 273424.25 2357089.41 1.92 -1.90 -0.4 4030.00 64.00 31.400 291.800 3385.03 1991.14 775.33 -1833.99 273392.90 2357102.45 2.09 -2.03 0.9 4092.00 62.00 30.100 291.800, 3438.32 2022.83 787.10 -1863.42 273363.b9 2357114.78 2.10 -2.10 ~rv0.0 4156.00 64.00 29.500 292.000 3493.85 2054.64 798.97 -1892.94 273334.41 2357127.20 0.95 -0.94 0.3 4219.00 63.00 29.400 292.100 3548.71 2085.61 810.59 -1921.64 273305.93 2357139.36 0.18 -0.16 0.1 4281.00 _62.00 28.400 293.100 3602.99 _ 2115.57 822.10 -1949.31 273278.49 2357151.40 1.79 -1.61 1.6 4345.00 64.00 27.600 292.700 3659.50 2145.62 833.80 -1976.99 273251.04 2357163.61 1.28 -1.25 -0.6 4406.00 61.00 26.600 293.000 :.3713.80 2173.40 844.59 -2002.59 27325.64 2357'X4,88 _ 1.65 -1.64 0.4 4470.00 64.00 25.800 294.100 3771.23 _2201.66 855.87 -2028.50 273199.96 2357186.65 1.46 -1.25 1.7 4533.00 63.00 24.700 293.300 3828.21 2228.53 866.68 -2053.10 273175.56 2357197.92 1.83 -1.75 -1.2 4598.00 65.00 _ 23.200 292.400 3887.61 2254.91 876.93 -2077.41 273151.45 2357208.63 2.38 -2.31 -1.3 4662.00 64.00 __ 22.100 _ 292.600 _3946.67 2279.56 886.36 -2100.18 __ 273128.86 2357218.49 1.72 -1.72 0.3 4723.00 61.00 20.800 292.500 j4003.44 230L86 894.91 -2120.78 273108.43 2357227.43 2.13 -2.13 -0.1 4786.00 63.00 20.600 292.500 406238 232 4.13 903.44 -2141.36 273088.02 2357236.34 0.32 -0.32 0.0 4849.00 63.00 19.400 292.600 4121.58 _ 2345.68 911.70 -2161.26 273068.28 2357244.97 1.91 -1.90 0.1 4912.00 63.00 18.200 293.300 4181.21 2365.98 919.61 -2179.95 273049.74 2357253.24 1.94 -1.90 1.1 4974.00 62.00 17.400 293.200 4240.25 2384.93 927.09 -2197.37 273032.47 2357261.05 1.29 -1.29 -0.1 5037.00 63.00 15.500 292.300 4300.67 2402.77 934.00 -2213.82 273016.16 2357268.26 3.04 -3.02 -1.4 5099.00 62.00 15.300 292.000 4360.44 2419.23 940.21 -2229.06 273001.03 2357274.76 0.35 -0.32 -0.4 5163.00 64.00 14.100 293.100 4422.34 2435.47 946.43 -2244.07 272986.15 2357281.26 1.92 -1.88 1.7 5227.00 64.00 12.600 293.600 4484.61 2450.25 952.28 -2257.63 272972.69 2357287.37 2.35 -2.34 0.7 5289.00 62.00 12.300 293.100 4545.15 2463.62 957.58 -2269.90 272960.53 2357292.90 0.51 -0.48 -0.8 MARATHON Actual Wellpath Report NaviTrak <173 - 8303'> Page 5 of 6 ri~~ BAKER MY6MES INTEQ --. ~p_ _ _ _ ---- -_ ~ _ _ _._-----__~~.~~ ~~ __-- ~_ ~~--- ~ __-_ --___---_ _~~~ _~ ___.__..~~ a. ,. ~ ~~ Operator MARATHON Oil CompanySlot Slot #KBU24-7X Area Cook Inlet, Alaska (Kenai Penninsula) Well KBU24-7X Field Kenai Gas Field Wellbore KBU24-7X Facility Pad #41-18 MD Course Length Inclination Azimuth TVD Vert Sect North East Grid East Grid North DLS Build Rate Turn Rate [feet] [feet] [°] [°] [feet] [feet] [feet] [feet] [us survey feet] [us survey feet] [°/100ftJ [°/100ftJ [°/100ft] 5413.00 60.00 11.200 291.200 4666.43 2489.46 967.59 -2293.74 272936.89 2357303.35 1.97 -1.83 -3.5 5478.00 65.00 9.200 287.200 4730.40 2500.95 971.41 -2304.59 272926.11 2357307.38 3.26 -3.08 -6.1 5541.00 63.00 9.000 287.600 4792.60 2510.87 974.39 -2314.10 272916.66 2357310.54 0.33 -0.32 0.6 5604.00 63.00 8.900 286.000 4854.84 2520.62 977.22 -2323.48 272907.34 2357313.55 0.43 -0.16 -2.5 6 00 8 00 28 600 4918 13 2530 02 979 95 2332 54 272898 33 2357316 44 1 30 1 25 2 5668.00 4. .1 7. . . . - . . . . . - .5 5732.00 64.00 6.500 289.800 4981.61 2538.13 982.54 -2340.24 272890.68 2357319.18 2.54 -2.50 3.4 5794.00 62.00 5.400 290.900 5043.28 2544.55 984.77 -2346.27 272884.69 2357321.52 1.78 -1.77 1.7 5857.00 63.00 4.300 288.100 5106.05 2549.87 986.56 -2351.28 272879.71 2357323.41 1.79 -1.75 -4.4 5922.00 65.00 4.000 289.100 _ _5170.88 2554.56 988.06 -2355.74 272875.28 2357324.99 0.47 -0.46 1.5 00 63 00 500 500 286 5233 75 2558 67 32 989 2359 66 27287 39 2357326 33 84 0 79 0 4 1 5985. . 3. . . . . - . 1. . . - . . - 6106.00 121.00 3.300 287.900 5354.53 2565.81 991.44 -2366.52 272864.57 2357328.58 0.18 -0.17 1.1 6232.00 126.00 3.300 285.400 5480.32 2573.02 993.52 -2373.47 272857.67 2357330.79 0.11 0.00 -1.9 6361.00 129.00 3.200 287.100 5609.12 2580.28 995.56 -2380.49 272850.69 2357332.96 0.11 -0.08 1.3 6487.00 126.00 2.900 287.000 5734.94 2586.95 997.53 -2386.90 272844.32 __ __ ~ 2357335.05 0.24 -0.24 -0.0 6614.00 127.00 _~...___- 2.700 284.fi0(~ ~, a ~~~'~9 ~._ ~ 2593.11 _ 999.22 -2392.86 ~.-. _ 272838.38 a.. w ___ ~. _` ~~ 2357336.86 .. 0.18 -0.16 -1.8 6740.00 126.00 2.500 286.300 5987.66 2598.78 1000.74 -2398.37 272832.90 2357338.48 0.17 -0.16 1.3 6864.00 124.00 2.400 288.000 6111.54 _ 2604.05 1002.30 X2403.44 272827.87 _ 2357340.14 0.10 -0.08 1.3 6990.00 126.00 2.200 293.000 6237.44 2609.10 1004.06 -2408.17 272823.17 2357341.99 0.22 -0.16 3.9 7117.00 127.00 1.900 297.400 6364.36 2613.64 1005.99 -2412.29 272819.09 2357343.98 0.27 -0.24 3.4 7241.00 124.00 2.000 _ 294.500 ~~6488.29 2617.85 1007.83 -2416.08 ~t' 2357345.90 0.11 ~ 0.08j -2.3 7369.00 128.00 1.800 293.200 6616.22 2622.09 1009.55 -2419.96 272811.49 2357347.69 0.16 -0.16 -1.0 7495.00 126.00 1.800 _ 295.500 6742.16 2626.05 1011.18 _ -2423.56 _ 272807.91 2357349.39 0.06 0.00 1.8 7621.00 126.00 1.500 295.700 6868.10 2629.67 1012.75 -2426.84 272804.67 2357351.02 0.24 -0.24 0.1 7747.00 126.00 1.400 306.200 6994.06 2632.81 1014.37 -2429.56 272801.97 2357352.69 0.22 -0.08 8.3 ELLPAT H DATA (1Q4 stations) MD [feet Course Length [feet] Inclination [°] I Azimuth °] TVD [feet] Vert Sect [feet] North [feet East [feet] Grid East [us surve feet] Grid North [us surve feet] DLS [°/100ft Build Rate °/100ft] Turn Rate [°/IOOft] 7998.00 124.00 1.300 313.200 7244.99 2638.63 1018.04 -2434.33 272797.28 2357356.45 0.16 -0.08 6.05'. 8124.00 126.00 1.300 315.800 7370.96 2641.28 1020.04 -2436.37 272795.28 2357358.49 0.05 0.00 2.06 8249.00 125.00 1.100. 324.700 7495.93 2643.61 1022.04 -2438.05 272793.63 2357360.52 0.22 -0.16. 7.12' 8303.00 54.00 1.100 324.700 7549.92 2644.49 1022.88 -2438.65 272793.05 2357361.38 0.00. 0.00 0.00'. HOLE & CASINGSECTIONS Ref Wellbore: KBU24-7X -Ref Wellpath: NaviTrak <173 - 8303'> String/Diameter Start MD [feet] End MD [feet] Interval [feet] Start TVD [feet] End TVD [feet] Start N/S [feet] Start E/W [feet] End N/S [feet] End E/W [feet] 20in Conductor 0.00'. 161.00 161.00 0.00 160.99 0.00 0.00 1.30 -0.10` 13.375in Casing Surface 0.00 1629.00 1629.00 0.00 1496.49 0.00 0.00 198.93 -471.00 9.625in Casing Intermediate 0.00 6068.00 6068.00 0.00 5316.60' 0.00 0.00 990.77' -2364.41'' VELLPATH CO MPO_ SITION Ref Wellbore: KBU24-7X Ref Wellpath: NaviTrak < _ 173 - 8303'> ~~ ~ Start MD [feet] End MD [feet] Positional Uncertainty Model Log Name/Comment Wellbore 0.00 1576.00 NaviTrak (Standard) NaviTrak <173 - 1636'> KBU24-7X 1576.00 5985.00 NaviTrak (Standard) NaviTrak <1687 -607T> KBU24-7X 5985.00 8303.00 NaviTrak (Standard) NaviTrak <6106 - 8303'> KBU24-7X SURVEY LOG COMMENTS ~~ ~ ~~~~ MD [feet] Inclination [°] Azimuth [°] TVD [feet] Log Comments 8303.00 1.100' 324.700 7549.92 Projected Data - No Survey Actual Wellpath Report g ~`~ AKER NaviTrak <173 - 8303'> I~I~t~NES MARATHON Page 6 of 6 IN~"I"EQ I~ RT-GL: 21.00' RT-THF: 21.70' 42' FNL, 599' FEL, Sec. 18, 4N, R11W, S.M. cxn = 4-3/4" Otis TOC (est.) @ +/-4300' from CBL Ceramic flapper valves below ach module as follows: 1-NA 2 - 8088' (broke 2/9/07) 3-8018' 4 - 7976' 5 - 7883' 6 - 7616' (broke 2/10/07) 7 - 7574' (broke 2/10/07) 8-7319' 9 - 7035' KBU 24-7X M ~wrewTMOw Drive Pipe: 20", 133 ppf, K-55, to 141' RKB Surface Casing: 13-3/8", 68 ppf, K-55, BTC @ 1627' RKB, Cmt w/ 230 bbls / 520 sx. of Class G Type 1 at 12.0 ppg. Int. Casing: 9-5/8", 40 ppf, L-80, BTC @ 6068' RKB. Cmt w/ 105 bbl of class G lead @ 12.5 ppg and 84.5 bbls Class G tail @ 13.5 ppg Prod. Tubing: 3-1/2", 9.3 ppf, L-80, EUE 8rd with 6.25" OD control line protectors to 8249' RKB. Cmt w/ 96 bbls Class G Lead Cmt at 13.5 ppg followed by 136 bbls class G at 15.8 ppg 9 Excape modules placed Green control line fired module 1 Yellow control line fired modules 2 thru 5 Red control line fired modules 6 thru 9 Ceramic flapper valves below each module xcept for module 1 1 - 8131-8141'(Tyonek) 2 - 8072-8082' (Tyonek) 3 - 8002-8012' (Tyonek) 4 - 7960-7970' (Beluga) 5 - 7866-7876' (Beluga) 6 - 7602-7612' (Beluga) 7 - 7560-7570' (Beluga) 8 - 7303-7313' (Beluga) 9 - 7019-7029' (Beluga) Well Name & Number: KBU 24-7X Lease: Kenai Gas Field County or Parish; Kenai State/Prov. Alaska Country: USA Perforations (MD) See Above (TVD) Angle/Perts Angle @ KOP and Depth BHP: BHT: Completion Fluid: 6% KCL Dated Completed: 2/10/2007 Prepared By: J. R. Thompson Last Revison Date: 2/20/2007 TD - 8303' PBTD - 8211' i • Marathon Oil Company Page 1 of 8 Operations Summary Report Legal Well Name: KENAI BELUGA UNIT 24-7X Common Well Name: KENAI BELUGA UNIT 24-7X Spud Date: 9/15/2006 Event Name: ORIGINAL DRILLING Start: 9/9/2006 End: Contractor Name: GLACIER DRILLING Rig Release: Group: ~ Rig Name: GLACIER DRILLING Rig Number: 1 Date From - To Hours Code Code Phase Description of Operations 9/11/2006 06:00 - 06:00 24.00 RURD RIG MIRU 9/12/2006 06:00 - 06:00 24.00 RURD RIG_ MIRU 9/13/2006 06:00 - 06:00 24.00 RURD RIG_ MIRU 9/14/2006 06:00 - 12:00 6.00 RURD RIG_ MIRU 12:00 - 00:00 12.00 RURD RIG_ MIRU 00:00 - 01:30 1.50 NUND BOPE . MIRU 01:30 - 03:00 1.50 MIRU 03:00 - 06:00 3.00 NUND BOPE SURDRL 9/15/2006 06:00 - 12:00 6.00 NUND BOPE SURDRL 12:00 - 13:00 1.00 SAFETY MTG_ SURDRL 13:00 - 15:30 2.50 NUND BOPE SURDRL 15:30 - 16:00 0.50 TEST BOPE SURDRL 16:00 - 18:00 2.00 INSPCT RIG SURDRL 18:00 - 21:00 3.00 REPAIR RIG_ SURDRL 21:00 - 22:00 1.00 PULD BHA_ SURDRL 22:00 - 00:00 2.00 DRILL_ ROT_ SURDRL 00:00 - 00:30 0.50 CIRC_ MUD_ SURDRL 00:30 - 01:00 0.50 TRIP_ BHA_ SURDRL 01:00 - 03:00 2.00 PULD_ BHA_ SURDRL 03:00 - 03:30 0.50 TRIP_ BHA_ SURDRL 03:30 - 06:00 2.50 DRILL ROT SURDRL 9/16/2006 06:00 - 06:00 24.00 DRILL_ ROT_ SURDRL 9/17/2006 06:00 - 07:00 1.00 CIRC MUD SURDRL 07:00 - 09:00 2.00 TRIP WIPR SURDRL PJSM;Load Out Trailers,Welding Shop,Parts House, Mech. Shop,Empty Trailers,Company Man,Toolpushers, House And Office Trailers,Pits,Pump Rooms,Boiler PJSM; Drive Conductor To 141'. Spot And R/U Camp Units. Demob Crane And Hammer. Level Location Build Berm On West Side Of Road. Lay Felt And Liner. Set Matting Boards PJSM; Move in And Spot Sub & Mud Boat. Spot Pits And Pump Unit. Set Boiler Generator Houses. Set Water Tank. Begin Running Electrical And Service Lines Raise Sub. Start Crane Work. Set Out Riggers. Set Dog And Choke Houses. Set Wind Walls. Raise Mast To Floor Level. Set Fuel tank. Power Up Generator Run Electrical Lines. Set Flow Lines. Install Stairs To Sub & Pits. Set Conex And Stairs. PJSM ;Prep & Scope Mast Adjuce Guy Wires Install Brake Linkege R/U Beaver Slide Install Bop Stairs Ruff Cut Condt Install Cylinder Covers Stage And Install Torque Tube And Top Drive. R/U Service lines To T/D M/U Strong Back And Tee Bar .Set # 3 M/P P/U Mouse Hole Shuck. R/U Bails, R/U Floor. Install 20 Starting Head & Test To 500 Psi F- 10min Complete Rig Floor R/U Nipple Up Diverter System. GD-1 Accepted 0300 Hrs On This Date. PJSM: Nipple Up Diverter System. Mix Spud Mud Weekley Safety Meeting Two Crews PJSM: Complete N/U Diverter System Function Test Diverter System. Witness Waved By Chuck Sceavey AOGCC. And Tim Lawer BLM Alarm Lights Not Functioning. Audio Working. Test Run Top Drive, Mud Pumps. # 2 Mud Pump Trouble Shoot Charge Pump Switches # 2 Mud Pump Charge Pump Failed. Troubleshoot Replace Pyle National Plug. M/U 16" Bit P/U Motor HWDP For Clean Out Assy Conductor Drill/Clean Out Conductor F- 36'-181' Circ. At 181' Clean Up Conductor POOH To P/U Mwd, NMDC P/U M/U 8 "BHA Assy RIH To 181' Drill Rotate Slide F- 181' - 273 Up Wt 35k Dn Wt 35k Rt. Wt. 35k Tq 5-6k Art = 1.2hr Ast = 0 Drill Slide Survey F- 273'- 1636' T/D Surface Section Up Wt. 77k Dn. Wt. 55k Rt Wt. 67 3-6.5k No Gain /Loss ART= 3.8hrs AST= 10.7hrs Circ Pump Sweep At 1636' Clean Hole Pump At 330spm 650gpm 1450psi. Sweep Returned With 50 % Inc In Sand Silt Clay. PJSM; POOH (Wiper Trip) F- 1636' -181' No Gain Loss. Hole Slick No Gain Loss Printed: 2/20/2007 11:25:19 AM ! +! Marathon Oil Company .Operations Summary Report , Page2of8 Legal Well Name: KENAI BELUGA UNIT 24-7X Common Well Name: KENAI BELUGA UNIT 24-7X Spud Date: 9/15/2006 Event Name: ORIGINAL DRILLING Start: 9/9/2006 End: Contractor Name: GLACIER DRILLING Rig Release: Group: Rig Name: GLACIER DRILLING Rig Number: 1 Date ~ :From - To I Hours I Code I ~ ~ ~ Phase ( Description of Operations 9/17/2006 09:00 - 11:30 2.50 TRIP WIPR SURDRL 11:30 - 12:30 1.00 CIRC_ MUD_ SURDRL 12:30 - 15:00 2.50 TRIP_ DP_ SURDRL 15:00 - 16:30 1.50 TRIP_ BHA_ SURDRL 16:30 - 19:30 3.00 RURD CSG SURCSG 19:30 - 00:00 4.50 RUN CSG SURCSG 00:00 - 02:30 2,50 RUN CSG SURCSG 02:30 - 04:00 1.50 TRIP DP SURCSG 04:00 - 04:30 0,50 RURD_ CMT_ SURCSG 04:30 - 05:00 0.50 CIRC_ MUD_ SURCSG 05:00 - 06:00 1.00 PUMP CMT SURCSG 9/18/2006 06:00 - 08:30 2.50 PUMP CMT SURCSG 08:30 - 09:00 0.50 RURD_ CMT_ SURCSG 09:00 - 11:30 2.50 TRIP DP SURCSG 11:30 - 18:30 7.00 NUND BOPE SURCSG 18:30 - 22:30 4.00 NUND WLHD SURCSG 22:30 - 05:30 7.00 NUND BOPE SURCSG 05:30 - 06:00 0.50 TEST BOPE SURCSG 9/19/2006 06:00 - 10:30 4.50 TEST BOPE SURCSG 10:30 - 11:00 0.50 RUNPUL WBSH SURCSG 11:00 - 19:00 8.00 PULD DP SURCSG 19:00 - 21:00 2.00 REPAIR RIG SURCSG RIH P/U 27 Jts 5" DP To 1570' Wash F- 1570'- 1636' No Fill Gain Or Loss Circ 1.5 B/U Shakers Cleand Up Monitor Well PJSM ;Pooh F-1636'To Run Csg. POOH UD Jars Lead Drill Collar And 15 7/8 Stab. PJSM :Clear Rig Floor C/O Bails R/U Weatherford Casing Tools PJSM; P/U And Baker Lock Shoe 8~ Float Collar Joints Ck Floats Run 19jts L-80 68# BTC Csg Run 20jts K-55 68# BRC Csg. For A Total Of 39jts To 1627.27' Float Collar At 1583.22' Shoe At 1627.27" No Gain Loss Correct Pipe Displacement PJSM; R/D Weatherford Csg Tools. C/O Bails, Elevators R/U False Rotary To Run 5" DP Inside 13 3/8 Csg. For Inner String Cement Job. TIH W/ 5" DP And Stinger For Inner String Cement Job 13 3/8 Csg. Tag Float Collar At 1586' And Space Out PJSM: R/U Cement Head And Lines Circ And Condition Hole At 1583' Pump 2bbl H2o Fill & Test Lines,Cmt Head To 3500psi. Pump 40bb1 Mud Clean Spacer Followed By 230bb1s Class G Type 1 Cement + 22 % LW-6 +20%+ MPA-1 + @% A-7+ 1 % SMS = .3 CD-32 + .05 SF= 1 GPS FP -6L Yield 2.483 Total 520 Sx Cmt 230bb1s. Total Of 100 bbls Cmt Pumped At 600hrs. Continue Pump Cement For A Total Of 225bb1s Pumped. Drop Drillpipe Wiper Dart And Displace DP W/ 24.8 bbls Mud. Divert Returns To Cellar. 15bbls Cement Returned To Cellar. Cement In Place At 0700hrs 9-17-06. 100% Returns. No Losses. Un Sting From Float Collar. Floats Holding. Circ Drillpipe Clean. Rig Down Cement Lines And Head. R/U False Rotary PJSM: POOH W/ 5" Drillpipe( Inner string) Pump Remaing Mud In Pits To G/I Plant Clean Pits WOC, Clear Floor Clean Pits N/D Diverter P/U Diverter And Make Ruff Cut. 20.67' Cement Found At Surface. Mix Mud Make Final Cut on 13 3/8 Csg. Install 13 3/8 X 135/8 Vetco Gray Multi Bowl Head. And Test To 1500psi For !0 Min Test Passed N/U BOPE. And All Related Components Continue Mix Flow Pro Mud PJSM; Test BOPE And All Related Components. Witness Waved By Lou Grimaldi AOGCC. Contacted Tim Lawlor BLM For 24 hr. Notice No Responce. Cont. Test BOPE And All Related Components 250/3000 For 10 Min (BLM ). Peform Accumlator Draw Down Test Test Gas Alarms LEL, H2s All Items Passed. Set Wear Bushing PJSM :Run HWDP In Hole P/U Drift And Stand Back 5" Drill Pipe Note:Found Cement In Drill Pipe. Rattle Pipe And Circ Out Any Residual Cement In Pipe. 90Jts P/U At 1900hrs Remove Kelly Safety Valve Actuator And Repair ReplaceSavor Sub & Grabber Dies. Printed: 2/20/2007 11:25:19 AM Marathon Oil Company Page 3 of 8 Operations Summary Report Legal Well Name: KENAI BELUGA UNIT 24-7X Common Well Name: KENAI BELUGA UNIT 24-7X Spud Date: 9/15/2006 Event Name: ORIGINAL DRILLING Start: 9/9/2006 End: Contractor Name: GLACIER DRILLING Rig Release: Group: Rig Name: GLACIER DRILLING Rig Number: 1 Date From - To Hours Code I Code Phase I Description of Operations 9/19/2006 21:00 - 23:00 2.00 PULD_ DP_ SURCSG RIH P/U 5" Drillpipe RIH Circ Out Cement Stand Pipe Back In Mast. P/U 5" Drillpipe Rattle ri< Rih Circ Out Any Cement. Pooh And Stand Back 23:00 - 00:00 1.00 CIRC_ MUD_ SURCSG Circ Condition Mud At 1550' Due To Hvy Thick Mud In Hole 00:00 - 01:30 1.50 TRIP_ DP SURCSG POOH Stand Back Drillpipe 01:30 - 04:00 2.50 TRIP_ BHA_ SURCSG PJSM; M/U 12 1/4 BHA. M/U 12 1/4 Bit, Sleave Type Near Bit Stab & String Stab. Rih. 04:00 - 06:00 2.00 REPAIR RIG_ SURCSG Repair Union On Goose Neck, Top Drive. Off Driller Side Tugger Line Hung Up Under Goose Neck Parting 3" Male Union Nipple. Inspect Tugger Line And Sheave. Change Out Tugger Line. Tag Out Tugger For Daylight Inspection. 9/20/2006 06:00 - 08:30 2.50 REPAIR RIG_ SURCSG Cont. Repair Goose Neck On Top Drive Swivel 08:30 - 09:00 0.50 TRIP_ BHA_ SURCSG Pulse Test Mwd P/U Jars HWDP. 09:00 - 09:30 0.50 TRIP_ DP_ SURCSG RIH W/ 5'DP To 1550' 09:30 - 11:00 1.50 TEST_ CSG_ SURCSG Test Csg. to 1300psi. Pressure Drop 200psi. Circ Out Air In Pipe. Re Test To 1500psi F- 30min Final psi 1490 11:00 - 13:30 2.50 DRILL_ CMT_ SURCSG Drill Shoe Track. Tagged Float Collar At 1583' Drill Hard Cement F- 1585' To 1625 Tag Shoe Drill Out Shoe To 1627' Clean Out To 1636- Drill New Hole To 1556' For LOT/FIT 13:30 - 15:30 2.00 CIRC_ MUD_ SURCSG Circ B/U At 1656' Shut Down Clean Pill Pit Mix Sweep/Spacer Displace Hole W/ 9.Oppg Flow pro Mud 15:30 - 16:00 0.50 TEST_ LOT_ SURCSG Peform FIT W 490psi 9.OMW At 1517 TVD = 15.2 EMW 16:00 - 06:00 14.00 DRILL_ ROT_ IN1 DRL Drill Rotate Slide F- 1656'- 2504' Up wt.-95K Dn. wt.-60K Rt. wt.-75K No Gains No Losses Art-5.4 hrs Ast-2.5hrs 9/21/2006 06:00 - 14:00 8.00 DRILL_ ROT_ IN1DRL Drill Slide Survey Rotate 2504'- 3006' Up Wt.-105k Dn. Wt.-70k Rt. Wt-85k. TO- 6k Art =3.2 Ast = 2.0 No Gain/ Loss 14:00 - 15:00 1.00 CIRC_ MUD_ INIDRL Circ Pump Sweep. Prep Hole For Wiper Trip At 3010' Pump At 335spm 650gpm 1795psi. 15:00 - 16:00 1.00 TRIP_ WIPR INIDRL POOH F- 3010- 1622' (Wiper Trip). Normal Drag No Over Pulls, Hole Slick No Gain /Loss 16:00 - 18:00 2.00 SERVIC RIG_ IN1 DRL PJSM; Service Top Drive, Blocks, Crown & Carrier Change Oil In Carrier Motors 18:00 - 19:30 1.50 TRIP_ WIPR INIDRL RIH F-1622' -3010' Wash 50' To 3010' 10' Of Fill. On Bttm. No Gain Loss 19:30 - 06:00 10.50 DRILL_ ROT_ INIDRL Drill Rotate Slide Survey 3010'-3707' Up Wt.- 120k Dn. Wt.- 75k Rt. Wt.- 95k Tq.-7k Art.=5.6hrs Ast.=1.2hrs No Gains No Losses Max Gas 36 Units. Pump Sweeps To Maintain Hole Cleaning. C/O Shaker Screens F- 175 To 200 9/22/2006 06:00 - 06:00 24.00 DRILL_ ROT_ IN1 DRL Drill Slide Rotate 3707'- 5157' Up. Wt.-155K Dn. Wt.-95K Rt Wt.-125K Tq.-9.5K Art.- 11.8 hrs Ast.- 3.1 hrs No Gains Losses Pump Hi Visc. Sweep Every 500' Max. Gas-109 Units. 9/23/2006 06:00 - 00:00 18.00 DRILL_ ROT_ IN1DRL Drill Rotate Slide-Survey F- 5157'-6000' Up Wt.-185K Dn Wt.-105K Rt Wt.-142K Tq.-10-12K Printed: 2/20/2007 11:25:19 AM Marathon ail Company Page 4 of 8 Operations Sluilnmary Report Legal Well Name: KENAI BELUGA UNIT 24-7X Common Well Name: KENAI BELUGA UNIT 24-7X Spud Date: 9/15/2006 Event Name: ORIGINAL DRILLING Start: 9/9/2006 End: Contractor Name: GLACIER DRILLING Rig Release: Group: Rig Name: GLACIER DRILLING Rig Number: 1 Date From -To Hours Code Code Phase Description ofiOperations 9/23/2006 06:00 - 00:00 18.00 DRILL_ ROT_ IN1 DRL Art.-7.7 Ast.-3.4 No Gains No Losses Pump Hi Visc. Sweep Every 500' Max Gas 184 Units 00:00 - 01:30 1.50 CIRC_ MUD_ IN1 DRL Circ. Bottoms Up At 6000' For Sample Per MOC Geo. 01:30 - 03:00 1.50 DRILL_ ROT_ IN1DRL Drill Rotate Slide Survey F-6000'-6077' Up Wt.-185K Dn Wt.-105K Rt Wt.-142K Tq.-10-12K Art-1.0 Ast-0 No Gains No losses Max Gas 184Units 03:00 - 04:00 1.00 CIRC_ MUD_ IN1 DRL Circ. Bottoms Up At 6077' For Wiper Trip No Gain Loss 04:00 - 06:00 2.00 TRIP_ WIPR IN1 DRL Check For Flow Pull 5 stds. Pump Dry Job POOH Wiper Trip F-6077- 4500' At 0600hrs Normal Drag. Hole Slick. No Gain Loss. 9/24/2006 06:00 - 08:00 2.00 TRIP_ WIPR IN1DRL Cont. Pooh Wiper Trip F-4500' - 2825' Hole Slick Max Over Pull 30kNo Gain Loss Correct Hole Fill. 08:00 - 08:30 0.50 SERVIC EQIP IN1DRL Service Rig. Top Drive, Blocks & Carrier 08:30 - 12:00 3.50 TRIP_ BHA_ IN1DRL RIH F- 2825'- 5779' Hit Bridge Wash And Ream At 5780' Wash Rotate Clean Up. Rih To 5956' - Tag Fill Wash And Ream to 6077'- Hole Appears To Be Bluffing. 12:00 - 14:00 2.00 CIRC_ MUD_ IN1 DRL Circulate Hi-Vis Sweep At 6077' 330spm 650gpm 1850psi. Sweep Returned At Caculated Volume. Increase In Cuttings Sand, Silt, Clays Monitor Well, Pump Dry job. 14:00 - 14:30 0.50 TRIP_ WIPR INIDRL PJSM; Pooh Short Trip F-6077' 5750' Hole Slick ^ RIH To 6077 No Bridges Or Tight Spots 14:30 - 20:30 6.00 TRIP_ DP_ IN1DRL PJSM :Pooh F- 6077' To Run 9 5/8 Csg 20:30 - 23:00 2.50 TRIP_ BHA_ IN1DRL PJSM; Stand Back Jars HWDP. L/D 12 1/4 BHA. Clean Rig Floor 23:00 - 23:30 0.50 RUNPUL WBSH IN1CSG M/U Test joint Pull Wear Bushing 23:30 - 00:00 0.50 RURD_ CSG_ IN1CSG Make Dummy Run With 9 5/8 Casing Hanger 00:00 - 01:30 1.50 RURD_ CSG_ IN1 CSG Change Pipe Rams to 9 5/8 And Test T/250 PSI-3000 PSI 01:30 - 05:30 4.00 RURD_ CSG_ IN1CSG Change Out Bails-M/U La Fluer Tool Adjust Torque Tube R/U Stabbing Board-Move Rig Tongs-R/U 05:30 - 06:00 0.50 RUN_ CSG_ IN1CSG Weatherford Tongs And Equip. PJSM; M/U Shoe Track. Bakerloc Same, Check Floats 9/25/2006 06:00 - 16:00 10.00 RUN_ CSG_ IN1CSG Run 148jts 9 5/8 L-80 40# BTC Casing.to 6015'. Circ At ~ 1600' & 3570'. Break Circ At 5635' Noted Lost Returns F- 4711' - No FluidLost While Pipe Static 16:00 - 17:30 1.50 RUN_ CSG_ IN1CSG Wash And Work 9 5/8 Casing F--6015'-6044' - P/U Vetco Gray 9 5/8 Csg. Hanger Wash Work To 6068' No Returns. Land Out Hanger At 6068' Shoe At 6068.47' F/C At 5986.52' Total Of 444 bbls. Lost 17:30 - 18:30 1.00 RUN_ CSG_ IN1CSG Mix And Build Surtace Volumes T-570 Bbls. 18:30 - 21:00 2.50 RUN_ CSG_ IN1CSG Lay Down La Fluer Tool And 350 Ton Elevators-Lay Down Long Bails-Pick-up Short Bails-Elevators-Rig Down Casing Tools 21:00 - 22:00 1.00 RUN_ CSG_ IN1CSG PJSM; Run Casing Pack-off on HWDP Test to 5000 PSI 22:00 - 23:00 1.00 RUN_ CSG_ IN1CSG PJSM;Rig-up BJ on Backside Pressure (9 5/8 X 13 3/8) Annulus Pump at 1 Bbl Min. to 477 PSI Bled Off Got Printed; 2/20/2007 11:25:19 AM ~ ~ Marathon Oil Company Page 5 of s Operations Summary Report Legal Well Name: KENAI BELUGA UNIT 24-7X Common Well Name: KENAI BELUGA UNIT 24-7X Event Name: ORIGINAL DRILLING Contractor Name: GLACIER DRILLING Rig Name: GLACIER DRILLING ::Date I From - To ~ Hours ~ Code I .Code ~ Phase 9/25/2006 22:00 - 23:00 23:00 - 01:00 01:00 - 02:00 02:00 - 03:30 03:30 - 05:00 05:00 - 06:00 9/26/2006 06:00 - 08:00 08:00 - 08:30 08:30 - 10:00 10:00 - 11:00 11:00 - 12:00 12:00 - 16:00 16:00 - 18:30 1.00 RUN_ CSG_ INICSG 2.00 RUN CSG IN1CSG 1.00 RURD_ RIG_ INICSG 1.50 PULD_ PKR_ IN1CSG 1.50 CUT WIRE IN1CSG 1.00 TRIP_ DP_ IN1CSG 2.00 TRIP_ DP_ INICSG 0.50 SETREL PKR_ INICSG 1.50 PUMP_ LCM_ IN1CSG 1.00 PUMP LCM IN1CSG 1.00 MIX_ LCM_ INICSG 4.00 PUMP LCM IN1CSG 2.50 PUMP_~CMT_ ~IN1CSG 18:30 - 19:30 19:30 - 20:00 20:00 - 01:30 01:30 - 06:00 9/27/2006 106:00 - 10:00 1.00 CIRC_ MUD_ IN1CSG 0.50 RURD_ CMT_ IN1CSG 5.50 TRIP_ DP_ IN1CSG 4.50 RUNPUL ELEC IN1CSG 4.00 LOG_ CSG_ INICSG 10:00-20:00 I 10.OOIREPAIRIRIG IIN1CSG 20:00 - 22:30 2.50 RURD_ ELEC INICSG 22:30-02:00 3.50 LOG_ CSG_ IN1CSG 02:00-02:30 0.50 LOG_ CSG_ INICSG 02:30 - 04:30 2.00 RURD ELEC IN1CSG 04:30 - 05:30 05:30 - 06:00 1.00 TEST_ CSG_ IN1CSG 0.50 RURD ELEC INICSG 9/28/2006 06:00 - 08:00 2.00 SETREL PLUG INICSG 08:00 - 09:00 1.00 SETREL PLUG IN1CSG 09:00 - 09:30 0.50 PERF_ CSG_ IN1 CSG 09:30 - 10:00 0.50 REPAIR RIG_ IN1CSG 10:00 - 12:00 2.00 PERF_ CSG_ IN1CSG Spud Date: 9/15/2006 Start: 9/9/2006 End: Rig Release: Group: Rig Number: 1 Description of Operations 1.5 bbls. Back Change 9 5/8 Rams To 2 7/8 X 5 Varibles Install Wear Bushing Adjust Torque Tube-Rig up Spinners Pick up Haliburton RTTS Packer And Circ. Valve RIH With 5" HWDP Cut 160' Drilling Line Slip 126' Drilling Line Adjust Brakes And Set C.O.M. RIH With Haliburton RTTS Cementer RIH With Haliburton RTTS Packer T/5980' Set RTTS Packer At 5980' Rig Up Cmt. Hd. Pump 87 Bbls. LCM Pill Close Bypass on RTTS Pump 9.4# LCM Pill intoLoss Circ. Zone Observed Partial Returns.95 Bbls. Loss/ 28 Bbls. Returned Mix Mud Volume And LCM Pill PJSM;Open And Pump80 Bbls. 9.4# LCM Pill 40/40 PPB LCM No Returns PJSM;With BJ Cementers Pump 2 Bbls. Water-Test ~n Lines to 3500 PSI-Pump 30 BbIs.10 ppg MCS-D Gr' Spacer-Pump105 Bbls.Lead Cement 12.5 ppg. CLASS G+2.2%SMS+.6%FL-52+.2%CD-32+ .5%CC+1ghs FP-CL 84.5 Bbls. Tail Cement 13.5ppg CLASS G +10%BA-90 +.5%BA-56+.5%EC-1+.1%ASA-301+.5%STATIC FREE +.5%SMS+.4%CD-32+.1%CC+1ghs FP-6L Pump 2 Bbls. Fresh Water Drop Sponge Ball Displace With 100 Bbls. 9.2# Mud Cement in Place At 18:20 Hrs. Circulate Well Clean. No Cement Returns Rig Down Cement Lines From Rig Floor Pull Out Of Hole With RTTS, Lay down Tool PJSM;Rig up Expro Wireline for Temp Log And Run Tool to 5980' Cont. Run Cement Temp Log Make 2 Passes POOH R/D Tools PJSM; Repair Top Drive. Replace T/D Drive Motor C/O Goose Neck On Swivel C/O Wash Pipe. Flush Gear Box Cage. Change Oil Filters on T/D Return Line PJSM;Rig Up Wireline For Bond-Set Lubricator-Make Up Tools RIH With Wireline CBL To 5980' T/5100'And Calibrate Tool Put 1000 PSI On Backside And Log F-5965'-5100' Bleed Of Pressure And POOH With Logging Tools Lay-Down Tools Rig Down Wireline Test Csg. To 1500 PSI For 30 Min Final psi 1500psi Rig Up Expro Wireline To Run Cmt. Retainers And Perforate Casing R/U &Rih W/ EZ Drill Cmt. Retainer On E- Line Locate ~ Set Retainer At 4885' Poh W/ E- Line R/U 2' Perf Guns 12 Shots 6 Per Foot On E- Line Repair Broken Hydraulic Line On Carrier t~( R/U E- Line And RIH W/ Perf Guns Shoot Perfs AF- O I/ 4870'-4872'. Run E- Line through Lubicator. Close I Annular. Printed: 2/20/2007 11:25:19 AM • Marathon Oil Company- Page 6 of 8 Operations Summary Report Legal Well Name: KENAI BELUGA UNIT 24-7X Common Well Name: KENAI BELUGA UNIT 24-7X Event Name: ORIGINAL DRILLING Contractor Name: GLACIER DRILLING Rig Name: GLACIER DRILLING Date From - To Hours Code Code l Phase Spud Date: 9/15/2006 Start: 9/9/2006 End: Rig Release: Group: Rig Number: 1 Description of Qperations 9/28/2006 ~ 12:00 - 13:30 ~ 1.50 CIRC_ ~ MUD_ ~ INICSG 13:30 - 16:30 ~ 3.00 PERF_ CSG_ ~ INICSG 16:30 - 18:30 2.00 TRIP_ DP_ INICSG 18:30- 19:00 0.50 PUMP_ CMT_ IN1CSG 19:00 - 22:30 3.50 PUMP_ CMT_ IN1CSG 22:30 - 23:00 0.50 PUMP_ CMT_ IN1CSG 23:00 - 03:00 4.00 TRIP DP IN1CSG 03:00 - 06:00 ~ 3.00 ~ PULD_ ~ DP_ ~ IN1 CSG 9/29/2006 06:00 - 08:30 2.50 PULD_ DP_ IN1CSG 08:30 - 12:00 3.50 TEST BOPE INICSG 12:00-13:00 1.00 SAFETY MTG_ INICSG 13:00 - 13:30 0.50 RUNPUL WBSH IN1CSG 13:30 - 15:30 2.00 PULD_ BHA_ IN1CSG 15:30-18:00 2.50 TRIP_ DP_ INICSG 18:00-18:30 0.50 SERVIC RIG_ IN1CSG 18:30 - 21:30 3.00 WAITON CMT_ IN1 CSG 21:30 - 22:00 0.50 TRIP DP IN1CSG 00 - 00:00 2.00 MILL_ PLUG INICSG 00 - 03:00 3.00 DRILL CMT INICSG 03:00 - 04:00 ~ 1.00 ~ TEST_ ~ CSG_ ~ I N 1 CSG 04:00-06:00 ~ 2.OO~DRILL_ CMT_ ~IN1CSG 9/30/2006 06:00 - 06:30 0.50 CIRC_ MUD_ IN1CSG 06:30 - 07:30 1.00 TRIP_ DP_ IN1CSG 07:30 - 11:30 4.00 DRILL CMT INICSG 11:30 - 12:30 1.00 CIRC_ MUD_ IN1CSG 12:30-15:30 3.00 TRIP_ DP_ INICSG 15:30 - 16:30 1.00 TRIP BHA IN1CSG 16:30 - 21:00 I 4.501 RURD I ELEC I IN1CSG 21:00-21:30 0.50 RURD_ ELEC INICSG 21:30-22:00 0.50 SAFETY MTG IN1CSG 22:00-00:00 ~ 2.OO~PULD_~BHA_ INICSG Circ Through Perf At 4870'-4872' Up 9 518 Annulus Pump At 3bbls Per Min. 310psi 100 % Returns Final Pressure 198psi. Pooh W/ Wire Line Perf Guns 8~ UD. R/U #2 Retainer Rih on E- Line. Set At 4820' Pooh & UD. E- Line ii< Tools PJSM RIH W/ Cmt Stinger On 5" DP. To 4820' Top Of Retainer R/U Cement Head And Lines Hold PJSM Pump 2 Bbls. Water-Test Lines to 3000 PSI-Pump 6 Bbls. KCL Spacer-Pump105 Bbls.Lead Cmt. CLASS G+.6%FL-52 +.2%CD-32+2.2%SMS+2.2 GAU100SKS FP-6U Pump 25 Bbls. Tail Cement Class G+.1%R3+.4%FL-63 +.3%CD-32+.1 %ASA-301 Followed By 2bbls H2o And 77.4 bbls 9.4 Mud. Cement In Place At 22.30hrs 100 % Returns., Note Batch Mix 70bbls Blow Down Cmt. Lines And Rig Down Cmt Head POOH With Haliburton Cmt. Tool F/4820' And L/D PJSM; P/U Drift Rattle 5" Drill Pipe RIH Off Pipe Racks Total Of 80jts Pooh, Stand Back Drillpipe For A total 2488' PJSM; M/U Test joint Pull Wear Bushing, Set Test Plug Test BOPE And All Related Componants 250/3000 All Passed. Witness Waved By Jeff Jones AOGCC Hold Weekly Safety Meeting With 2 Crews Set Wear Bushing. PJSM; P/U & M/U Mill Assy W/Junk Baskets TIH W 5 "Drillpipe To 4700' WOC Lube Rig-Top Drive-Drivelines-Crown-Blocks Wait On Cement-Circ. Condition Mud RIH With Mill F-4762'-4820' Tag Retainer Up Wt.-150K Dn Wt.-85K Rt. Wt.-113K Mill Cement RetainerAt 4820' Tag Hard CementAt 4851' 29' Below Retainer Drill Hard Cmt & Junk F- 4851' - 4880'. 21' Cmt Test Csg. To 1500psi F- 30min. Final Pressure 1450psi. Drill Cmt To 4883' /Mill Retainer F- 4883'- 4886' Work Pipe Clean Up. Circ. Circ B/U Clean Up Cement Retainers At 4886' Rih Hole To 5982' Tag Cement & Float Collar Drill /Mill Cmt ,Junk And Float Collar F- 5982'- 5990' Mill C/O Shoe Track To 6027' (Hard Cement At 6027' ) Pump Hi Vis Sweep Circ. Clean Up Hole At 6027 PJSM; Pooh W 5" D.P. F- 6027 - 856' POOH UD Drill Collars Mill And Junk Baskets Junk Baskets Contained 70 # Of Metal & Brass PJSM ; R/U Precision WLS And Run CBL Tools. Run Bond Log F- 5500' Up To 3800' Rig Down Weathrford Wireline Suspend Operation And Hold Safety Meeting With All Personal, Due To Weatherford Wire Line Service Accident. PU/MU BHA #4 Scribe Pulse Test Mwd. Install Printed: 2/20/2007 11:25:19 AM • U Marathon 0iI Company Page 7 of 8 Opera#ions Summary'Report Legal Well Name: KENAI BELUGA UNIT 24-7X Common Well Name: KENAI BELUGA UNIT 24-7X Spud Date: 9/15/2006 Event Name: ORIGINAL DRILLING Start: 9/9/2006 End: Contractor Name: GLACIER DRILLING Rig Release: Group: Rig Name: GLACIER DRILLING Rig Number: 1 Date From - To Hours Code Code Phase Description of Operations 9/30/2006 22:00 - 00:00 2.00 PULD_ BHA_ IN1CSG Corrosion Ring In HWDP 00:00 - 03:00 3.00 TRIP_ DP_ IN1CSG RIH To 6027' 03:00 - 05:30 2.50 DRILL_ CMT_ IN1 CSG Drill Cement And Float Shoe F- 6027' Tag Shoe At 6068' Drill T-6097' For Leak Off Test -Drilled 20' New Formation 05:30 - 06:00 0.50 TEST_ LOT_ INICSG Perform Fit Test 9.45 MW 987 PSI = 13ppg EMW At 5346 TVD 10/1/2006 06:00 - 18:30 12.50 DRILL_ ROT_ PR1DRL PJSM; Drill Survey F-6097'-7042' Up Wt.-185K Dn. Wt.-115K Rt Wt.-146K Tq.-11-13K No Gains No Loss ART- 8.6 Run Centerfuge Van 18:30 - 19:30 1.00 CIRC_ MUD_ PR1 DRL Circ. Bottoms Up For Wiper Trip At 7032' Max Gas 250Units 19:30 - 21:30 2.00 TRIP_ WIPR PR1 DRL Make Wiper Trip F-7042'-6033' - Hole Tight At 7042'-6700' Also From - 6475'-6033' Back Ream And Clean Up 21:30 - 22:00 0.50 SERVIC RIG_ PR1 DRL Service Rig 22:00 - 23:00 1.00 TRIP_ WIPR PR1 DRL RIH F-6033'-7042' No Fill Hole Slick No Gains No Loss 23:00 - 06:00 7.00 DRILL_ ROT_ PR1 DRL PJSM;Drill Survey F-7042'-7419' Up Wt.-185K Dn. Wt.-120K Rt Wt.-155K Tq.-12-13K No Gains No Loss ART-4.9 Max Gas 315units 10/2/2006 06:00 - 07:30 1.50 DRILL_ ROT_ PR1 DRL Drill Rotate F- 7419'-7459' Note Pressure Loss 375psi - Over 4 hrs And Reduction In Pentration Rate ART-.7 07:30 - 08:00 0.50 CIRC_ MUD_ PR1 DRL Circ B/U At 7459' Monitor Well 08:00 - 14:00 6.00 TRIP_ DP_ PR1 DRL Pooh For Possible Wash Out. Found Washout On Stand # 8 Bottom Jt 22.5" From Pin 1050' 14:00 - 17:00 3.00 TRIP_ DP_ PR1 DRL TIH F-1050' - 7400 Wash Down To 7459" No Fill Gain/ Loss- Change Shaker Screens To 230 Mesh 17:00 - 06:00 13.00 DRILL_ ROT_ PR1 DRL Drill Survey F-7459'-8176' Up Wt.-215K Dn. Wt.-150K Rt.Wt.-168KTq-12K-13K ART-8.6 No Gains Losses Max. Gas- 600units At 7556' ~ Pump Hi Visc.Sweep Every 300' ~-~ 600units At 7855', 500' 7885' 10/3/2006 06:00 - 08:30 2.50 DRILL_ ROT_ PR1 DRL Drill, Survey F- 8176- 8303' Up Wt.-220K Dn. Wt.-150K Rt.Wt.-170K Tq.-12-13K ART-2.5 No Gains No Losses 08:30 - 09:30 1.00 CIRC_ MUD_ PR1 DRL Circ B/U For Samples To Confirm T/D As Per MOC Geo. Dept. At 8303' 09:30 - 12:00 2.50 TRIP_ WIPR PR1 DRL PJSM; Wiper Trip F- 8303'- 7350', Work Tight Spots Without Back Reaming. Clean Up Hole. RIH to 8303' Hole Slick No Gain Loss. (Wiper Trip Was Made Wating On Final T/D Confirmation MOC GEO Dept.) 12:00 - 14:30 2.50 CIRC_ MUD_ PR1 DRL C/ C Well Bore For Logging Program At 8303'. Circ At 250spm 500 gpm 1850psi. Max Gas At B/U 1650 units Monitor well 15min, Circ B/U Max Gas 850units ~ Monitor Well, Pump Dry Job. 14:30 - 20:00 5.50 TRIP_ DP_ PR1 DRL PJSM Pooh SLM For Loggs F- 8303' Stop At Shoe 6068' Monitor Well. Well Static 20:00 - 22:00 2.00 PULD_ BHA_ PR1 DRL POOH With BHA Stand Back HWDP And Jars Lay Down Directional Tools Clear Floor 22:00 - 22:30 0.50 SAFETY MTG_ PR1 EVL PJSM;With Weatherford Safety Man,Wireline Crew And Rig Crew-Rig Up Weatherford Printed: 2/20/2007 11:25:19 AM • • Marathon Oil Company Operations Summary Report Page 8 of 8 Legal Well Name: KENAI BELUGA UNIT 24-7X ' Common Well Name: KENAI BELUGA UNIT 24-7X Spud Date: 9/15/2006 Event Name: ORIGINAL DRILLING Start: 9/9/2006 End: Contractor Name: GLACIER DRILLING Rig Release: Group: Rig Name: GLACIER DRILLING Rig Number: 1 Date From - To Hours Code Code Phase Description of Operations. 10/3/2006 22:30 - 05:00 6.50 RURD_ ELEC PR1 EVL Rig Up Weatherford Rehead Wireline Tool- Pick-Up Tools 05:00 - 06:00 1.00 LOG_ OH_ PR1 EVL Log /Quad Combo With Weatherford Wire Line Service 10/4/2006 06:00 - 12:30 6.50 LOG_ OH_ PR1 EVL Log W/ Quadcombo Suite /POOH L/D Tools & R/D Lubricator Assy. Logging Tools Stopped At 7966' 37' From Bttm. 12:30 - 15:00 2.50 TRIP_ DP_ PR1 EVL M/U 8 1/2 Clean Out Assy. RIH To 6069' 15:00 - 17:00 2.00 CIRC_ MUD_ PR1 EVL Circ. B/U At 6069' After 1200stks Gas Inc To 1050units_ Divert Flow Thru Gas Buster. Gas Units After Gas buster 640units For 1hr45min 17:00 - 17:30 0.50 TRIP_ DP_ PR1 EVL RIH F-6069'-8238' 17:30 - 22:30 5.00 CIRC_ MUD_ PR1 EVL Circ. At 5400stks Gas Inc F- 450units To 175 Divert Flow Thru Gas Buster. Gas After Buster 640 Units. Wash Down To 8303' No Fill. Shut Pumps Down For 15min. Circ Bu. Max Gas 1675units. Increase Mud Wt To To 9.9. Shut Pumps Down 15min. Circ B/U Max Gas 56units. 22:30 - 00:30 2.00 TRIP_ DP_ PR1 EVL Check For Flow Pump dry Job POOH F-8303'-6029' No Gain Loss Up Wt.-195K Dn. Wt.-130K Rt.Wt.-170K 00:30 - 03:00 2.50 CUT_ WIRE PR1 EVL Cut And Slip Drilling Line 326'. Monitor Well No Gain Loss 03:00 - 06:00 3.00 TRIP_ DP_ PR1 EVL PJSM; POOH F-6029' For Logs No Gain Loss Well Static ',10/5/2006 06:00 - 07:00 1.00 TRIP_ DP_ PR1 EVL POOH W/ 8 1/2 Clean Out Assy. 07:00 - 12:00 5.00 TRIP_ DP_ PR1 EVL M/U Mule Shoe On 5" DP RIH To 7250' For RFT E- Line Logs In Drillpipe 12:00 - 13:30 1.50 CIRC_ MUD_ PR1 EVL Circ B/U For Gas At 7250' Max Gas 765units 13:30 - 23:30 10.00 LOG OH_ PR1 EVL R/U And Run RFT Tools On E- Line In Side Drillpipe Parked At 7256' Monitor Well With Returns To Trip Tank 23:30 - 00:30 1.00 LOG_ OH_ PR1 EVL POOH W-MFT Logs on E-Line And R/D 00:30 - 02:30 2.00 CIRC_ .MUD_ PR1EVL Circ Bottoms Up At 7257'At 1160 Gas Units Divert Flow Thru Choke Gas Buster 860 Units 02:30 - 04:00 1.50 TRIP_ DP_ PR1 EVL POOH F-7257' -6060' Park Drill Pipe 04:00 - 06:00 2.00 LOG_ OH_ PR1 EVL Rig Up Wireline And Run RFT In Thru Parked Drill Pipe 10/6/2006 06:00 - 13:00 7.00 LOG OH_ PR1 EVL Cont. Run Rft On E- Line POOH W/ E- Line & R/D. Move To Completion Phase 1300hrs 10-5-2006 Printed: 2/20/2007 11:25:19 AM • Marathon OiI Company Page 1 of 2 Operations Summary Report. Legal Well Name: KENAI BELUGA UNIT 24-7X Common Well Name: KENAI BELUGA UNIT 24-7X Event Name: ORIGINAL COMPLETION Contractor Name: GLACIER DRILLING Rig Name: GLACIER DRILLING Date From - To Hours Code Code Phase 10/6/2006 13:00-14:00 1.00 TRIP DP PR1CSG 14:00-16:30 2.50 CIRC MUD PR1CSG 16:30 - 17:30 1.00 PUMP TRET PR1 CSG 17:30 - 05:30 12.00 PULD DP PR1 CSG 05:30 - 06:00 0.50 RUNPUL WBSH PR1 CSG 10/7/2006 06:00 - 07:30 1.50 RURD OTHR PRICSG 07:30 - 10:00 2.50 RURD_ CSG_ PR1CSG 10:00 - 03:30 17.50 RUN CSG PR1 CSG 03:30 - 05:30 2.00 CIRC MUD PR1 CSG 05:30 - 06:00 0.50 RURD_ ELEC PR1 CSG 10/8/2006 06:00 - 08:30 2.50 LOG CSG PR1 CSG 08:30 - 10:30 2.00 CIRC MUD PR1CSG 10:30 - 13:30 3.00 PUMP CMT PR1 CSG 13:30 - 02:00 12.50 NUND BOPE PR1 CSG 02:00 - 02:30 0.50 NUND EQIP PR1 CSG 02:30 - 03:00 0.50 REPAIR EQIP PR1 CSG 03:00 - 06:00 3.00 NUND EQIP PR1 CSG 10/9/2006 06:00 - 06:30 0.50 NUND EQIP PR1 CSG 06:30 - 11:30 5.00 NUND TREE PR1 CSG 11:30 - 06:00 18.50 RURD RIG_ RDMO Spud Date: 9/15/2006 Start: 10/10/2006 End: Rig Release: Group: Rig Number: 1 Description of Operations PJSM; RIH W/ Drillpipe F- 6060'- 8303' No Gain Loss Hole Slick. No Gain Loss Or Fill Circ At 8303' Max Gas 1675units Circ Thru Gas Buster Max Gas 775units Total Of 11250stks To Circ Out Gas Open Up And Circ Increase Mud Wt F- 10ppg To 10.2ppg Circ. And Spot Corrosion Inhibiter In Drill Pipe Monitor Well 10 Min POOH Laying Down 5" Drill Pipe Total Of 8308' Total Of 279jts UD Including HWDP.Jars M/U Test Jt. Pull Wear Bushing PJSM: R/D Rig Floor Drillpipe Handling Tools, Tongs, And Spinners. C/O Bails. PJSM; R/U Excape Control Lines, Csg Elevators, Tongs Run 3 1/2 Csg. M/U Shoe And F/C Check Floats. Run 3 1 /2 Excape Csg. W/ 3 Control Lines And 1 Sacf. Line Total Of 9 Modules And 247jts. to 8248.91' Stop At Shoe 6068' Break Circ. No Gain Loss Correct Displacement. Up Wt.-98K Dn wt.-65K. Shoe At 8248.91' F/C 8211.98' R/U Circ Head Circ At 8256' 121 spm 1019psi 233gpm B/U Gas Max 100 Units Rig Up Expro Z£ Run G/R Log to Correlate Modules On Depth PJSM; Run Gamma Ray Corrleation tools To Set Depth Of Modules. R/D E-Line M/U Cement Head & Lines. Circ 318bb1s W/ Conquor 303 & SMB In 9 5/8 X 3 1/2 Annulus PJSM; Pump 2 bbls H2o, Test Lines To 4000psi Mix And Pump 40 bbls MCS-4D Spacer Followed By 95.83bbls 13.5ppg Class G Lead Cement + 10% BA-90 + 2.5% BA-56+ 0.5%SMS + 0.4% CD-32 + .02% R-3 + .01 % ASA-301 + 1 gps FP-61 For A Total 296sx Cement With A Yld. Of 1.82 Followed By 136.22bbls 789sx Class G Cement + 1.2% BA- 56+ 05%EC-1 +.02% R-3+.02% SMS + 03 CD-32+ 1 ghs FP-6L. Pump 2bbl H2o Drop Plug Displace Csg. W/ 6% KCL Bump Plug At 70.6 bbls And 2400psi. Bleed Pressure Off, Floats Held. Cement In Place 1320hrs 10-7-06 100 % Returns. Nipple Down BOPE Clean Pits While WOC. PJSM. P/U Stack, Cut Csg. Terminate Excape Control Lines Set Slips. Damaged Control Line. Splice And Repair Control Line Move Out BOP Stack. Make Final Cut On 3 1 /2 Csg. Install Pack Off Set Pack Off And Test To 5000/ 10Min. Test Passed Set And N/U Tree.Test To 5000psi 10 Min Pull Two Way Check And Install Back Pressure Valve Rig Down-Flush Lines To Rig Down Top Drive And Manifolds Prep Torque Tube To Lay Down-Pickle Pumps load Out Service Trailers-Hanson Tank-Unplug Hyd. Cooling Tower-Repair Suction Line In Pill Pit-Shut Down Boiler-Lay-Down Top Drive Rail-Mud Manifold,Stand pipe Choke Lines-Gas Buster-Panic Line-Remove Tarps From Rams And Carrier-Rig Down Trip Tank-Guide Lines From Derrick Board Ready Derrick Board to Scope Down-Move Landing Between Printed: 2/20/2007 11:24:42 AM • i Marathon Oil Company Page 2 of 2` Operations Summary Report Legal Well Name: KENAI BELUGA UNIT 24-7X Common Well Name: KENAI BELUGA UNIT 24-7X Spud Date: 9/15/2006 Event Name: ORIGINAL COMPLETION Start: 10/10/2006 End: ..Contractor Name: GLACIER DRILLING Rig Release: Group: ,Rig Name: GLACIER DRILLING Rig Number: 1 Date From - To Hours Code Code Phase Description of Operations 10/9/2006 11:30 - 06:00 18.50 RURD RIG RDMO Mast And Board. 10/10/2006 06:00 - 12:00 6.00 RURD RIG_ RDMO PJSM;Rig Down Demob Drillers Consule-Snubbing Post- Remove Tarps In Cellar-Rig Down Choke And Kill Lines- Loosen Load Lines And Scope Down Derrick-Disconnect Mud pits-Remove De-gasser-Pull Elec. Wires-Crane Off Stairs Beaver Slide-BOP Connex-Load Out Catwalk-Clean Cuttings Tank Rig Down G&I Pump And Hoses-Clean Sumps And Mud Boat- Rig Down Service Lines-Trip Tank-Pits-Pumps-Prep carrier And Remove Turnbuckles-Crane Drillers dog House and Stairs-Flowline Remove Choke House-Fuel Tank Off Top Of Boiler- Pick-up Skirts on Carrier Remove Jack Stands-Makeup Mule Shoe To Sub Base -Remove Carrier off Mud Boat 12:00 - 06:00 18.00 RURD_ RIG_ RDMO High winds - up to 50 mph delayed rig down and delaying laying of the liner on the next well. The rig will be moving to KBU 33-6 for a recompletion. Rig Released To KBU 33 -6 0600hrs 10-10-06 Printed: 2/20/2007 11:24:42 AM Legal Well Name: Common Well Name: Event Name: Contractor Name: Rig Name: Date From - To 11/19/2006 09:00 - 11:00 11:00 - 11:30 11:30 - 13:00 13:00 - 15:15 • • Marathon Oil Company Operations Summary Report KENAI BELUGA UNIT 24-7X KENAI BELUGA UNIT 24-7X ORIGINAL COMPLETION GLACIER DRILLING GLACIER DRILLING Hours Code Sub I Phase Start: 11/19/2006 Rig Release: Rig Number: 1 Page 1 of 4 Spud Date: 9/15/2006 End: Group: Description of Operations 2.00 ~ SAFETY ~ MTG_ PR1 EVL Held PJSM, discussed procedure and uptained safe work permit. 0.50 1.50 2.25 15:15 - 15:35 0.33 WORN 15:35 - 17:00 1.42 RURD 1/31/2007 08:00 - 10:00 2.00 RURD 2/1/2007 08:00 - 14:00 6.00 RURD 2/2/2007 08:00 - 18:00 10.00 RURD 2/3/2007 08:00 - 18:00 10.00 RURD 2/6/2007 08:00 - 18:00 10.00 RURD 2/7/2007 08:00 - 15:00 7.00 RURD Discussed working in extreme cold conditions. ELEC PR1 EVL RU lubricator on well, PU logging tool. MU dual radial cement bond log and pressure temperature gauges. ELEC PR1 EVL RIH with tools. Hole full of KCL water left from Rig. RIH found top of cement around 4300' KBD. Correct depth to Precision Compensated Sonic log date of 10-3-2006. ELEC PR1 EVL Drop down logging to PBTD of 8211' KBD. Start main logging pass up to 3800'. Continue OOH with logging tools. ELEC PR1 EVL OOH with tools, Shut well and RD equipment. ELEC PR1 EVL Expro left lease. Log data emailed to Houston STIM CMPSTM Held pad meeting and finalized frac equipment location and staging. STIM CMPSTM Lay liner on location. Move in and spot frac and flow back tanks. STIM CMPSTM Vac truck water to location and fill 8 frac tanks. STIM CMPSTM Lay down more liner for frac trucks, sand kings, blender, footprint. Move in and spot frac equipment. KCL frac tanks to 6% kcl. Move in well test equipment and MOC iron, sand buster, gas buster, choke manifold. STIM CMPSTM Rig up frac lines, flowback lines, install gas buster, lay berm remaining liner areas, move inand spot CTU. Continue ru of well testers. STIM CMPSTM Finish RU of frac lines adn all chemical lines, etc. Finish building welltester shelter around equipment and RU test lines. Finish flow back iron RU. Spot Expro trailer and ru perforating control lines to tree. 15:00 - 15:30 0.50 PERF CSG_ CMPSTM Pressured up on green line to 3975 psig and perforated module 1 from of frac job for 9 modules and determine that only 4 of 9 could be treated before dark. Made call to postpone frac till in the morning so as not to leave fluid on formation any longer than necessary and to helpo ensure safe operations with new frac equipment with some neew frac personnel. SDFN. 15:00 - 18:00 3.00 RURD_ STIM CMPSTM Verify all equipment ready for frac operations. 2/9/2007 07:30 - 08:00 0.50 SAFETY MTG_ CMPSTM Held pre frac safety meeting. Discussed slips trips and falls, high pressure frac ops, flowback, frac tracing, etc. 08:00 - 09:30 1.50 RURD_ STIM CMPSTM Pressure test well testers lines to 4500/250. Good Test. Pressure test frac lines to 9500 psi. Good Test. Gel up for frac job. 09:30 - 10:30 1.00 PUMP_ FRAC CMPSTM Open well. SITP = 550 psig. Attempt to pump into modoule 1 perfs and immediately pressure up to 8000 psig pop off pressure. Pressure holding at +/- 7850. Bleed off pressure and open well to flowback tank. Monitor for flow. Well flowing small amount of fluid. Flowed back 3.5 bbls kcl. Shut in flow line and start frac treatment. Pump 2.5 bbls and pressured up to 7500 psi. Shut down pumps and monitor SITP. Pump on dead string. Same open and clear. Possible debris/fill over perfs preventing pump in. Bleed off pressure and flow well. Monitor flow. Well not flowing. Pump into well again. Pressured up to 8300 psig. Shut down and monitor bleedoff. So far have had no communication to dead string on pump in attempts. Surge well with as rapid of a bleedoff as possible. Attmpt to pump in, perfs broke down at 6500 psig. Start frac. ~.. 8131' - 8141' OHL. Had good indications that gun fired. Secure Expro equipment. 15:30 - 18:00 2.50 RURD_ STIM CMPSTM Finalize all frac and well test /flowback equipment RU. Pressure test CT lines and BOPs and equipment to 4500!250 psig. 2/8/2007 08:00 - 11:30 3.50 SAFETY MTG_ CMPSTM Participate in Safety stand down for drug and alcohol search. Held pre frac safety meeting. 11:30 - 12:00 0.50 RURD_ STIM CMPSTM Move frac crews to location after safety stand down. 12:00 - 15:00 3.00 RURD STIM CMPSTM Work through equipment warm up and pre frac ops check. Discuss timing Printed: 2/20/2007 11:23:11 AM • Marathon Oil Company Page 2 of 4 Operations Summary Report Legal Well Name: KENAI BELUGA UNIT 24-7X Common Well Name: KENAI BELUGA UNIT 24-7X Spud Date: 9/15/2006 Event Name: ORIGINAL COMPLETION Start: 11/19/2006 End: ~ Contractor Name: GLACIER DRILLING Rig Release: Group: Rig Name: GLACIER DRILLING Rig Number: 1 Date From - To Hours Code Phase Description of Operations Code ' 2/9/2007 10:30 - 11:00 0.50 PUMP_ FRAC CMPSTM RKB) w/ BJ Lightning_V_1800 wtr based Frac mod 1 perfs (8131-8141 system at 15 BPM at max TP = 6500 psi. Ramp 2.0 - 10.0 ppa. BHP started climbing. Went to flush after 32 bbls 10 ppg pumped. Flushed with 38 bbls prior to screenout with 8 ppg on perfs. 33 bbls short of complete flush volume. Placed 44352 Ibs prop (72.1 % of design) (87.5 20/40 Ottawa & 12.5% 12/20 Flex Sand). Tot Load = 349 bbls. Traced pad volumes with SC-46 and all sand stages with Ir-192. Tagged all fluid w/ ProTechnics CFT 1100 chemical tracer and field tracer EPT 1000 (cumm. load = 349 bbls) (Strap chemical tanks post Frac) 11:00 - 12:30 1.50 FLOW_ BACK CMPSTM Open well and attempt to flow back tubing volume. Welll flowed back 30 bbls and died. 12:30 - 12:45 0.25 PUMP_ FRAC CMPSTM Attempt to pump flush volulme to module 2. Pumped total of 25 bbls and pressured three separate times without success. Oopen well to flowback. Call for coil tubing. 12:45 - 15:00 2.25 FLOW_ BACK CMPSTM Monitor flow back waiting on coil tubing. 15:00 - 17:00 2.00 RURD_ COIL CMPSTM Hold prejob safety meeting. RU CTU. STab injector head. PT to 4500/250 psig. Load coil tubing. 17:00 - 19:45 2.75 RUNPUL COIL CMPSTM RIH with CT at 40 fpm circulating at .25 bpm. Tag sand at 5690'. ~ Increase rate to 2 bpm. Take pull weight. 19:45 - 21:15 1.50 WASH FILL CMPSTM RIH washing fill from 5690 to 8223' CTM. washing at 2 bpm. 21:15 - 21:30 0.25 CIRC_ CFLD CMPSTM Circ for 15 min at 8215' CTM 21:30 - 23:00 1.50 RUNPUL COIL CMPSTM POOH with CT pumping at 2 bpm until returns were clean. Finish POOH. 23:00 - 00:00 1.00 RURD_ COIL CMPSTM Pump coil with methanol mix. RD CTU injector head and secure well. SDFN. 2/10/2007 07:30 - 08:00 0.50 SAFETY MTG_ CMPSTM Hold prejob safety meeting discussing frac operations. 08:00 - 08:45 0.75 RURD_ STIM CMPSTM Gel up and inspect all equipment for frac ops. Ensure hole full of fluid. Relook at module 2 design due to having KCL in hole and not pad. ~ Changed 4ppg stage from 2016 clean gal to 1764 clean gal. New job total ~~ = 32172 Ibs. /~ I 08:45 - 09:15 0.50 PUMP_ FRAC CMPSTM Perforate Module 2 from 8072 - 8082' with 3000 psig on yellow line. Frac mod 2 w/ BJ Lightning_V_1800 wtr based system at 15 BPM at max TP = 5600 psi. Ramp 2.0 - 6.0 ppg. Bottom hole pressure constantly rising throughout job. 2 ppg stage did not clean up near wellbore as usual. 4ppg in pipe, went to flush during 6 ppg stage as 4ppg hit perfs. Treatment screened out with 4ppg on perfs after 17 bbls of flush pumped. Placed 4479 Ibs prop (14% design) (87.5 % 20/40 Ottawa & 12.5% 12/20 Flex Sand). Tot Load = 139 bblsl. Traced pad volumes with SC-46 and all sand stages with Ir-192. Tagged all fluid w/ ProTechnics CFT 1200 chemical tracer (cumm. load = 488 bbls) (Strap chemical tanks post frac) 09:15 - 11:30 2.25 FLOW_ BACK CMPSTM Flow well back. Monitor flowback volumes. Flow back 27 bbls and well basically dead. Pumped back into well with 45 bbls before pressured up again. Surged with rapid bleedoff. Pumped back in with no success. Open well to flow while waiting on coil. Flowed 5 bbls back. Attempt to pump in again. No success. Surge with rapid bleedoff. Pump in with no success. Surge well with rapid bleedoff and put to flowback tank. Monitor returns. Flowed back three bbls. Attempted two more times to pump in with rapid bleedoff without success. Coil on location. 11:30 - 14:15 2.75 RURD_ COIL CMPSTM Hold prejob safety meeting. RU injector head. PT to 4500/250 psig. 14:15 - 17:45 3.50 WASH FILL CMPSTM RIH with CT pumpnig at 0.25 bpm. Tag sand bridge at 3875'. Work through same. Continue RIH. No indications of hard sand bridges. Started getting sand back in retums at +/-7500' CTM. Wash sand tp 8223' CTM. No indications of module 2 flapper. 17:45 - 18:15 0.50 CIRC_ CFLD CMPSTM C BU and POOH to 8070' CTM. Shutdown pumps. i Printed: 2/20/2007 11:23:11 AM • . Marathon Oil Company Page 3 of 4 Operations Surnrnary Repolrf Legal Well Name: KENAI BELUGA UNIT 24-7X Common Well Name: KENAI BELUGA UNIT 24-7X Spud Date: 9/15/2006 Event Name: ORIGINAL COMPLETION Start: 11/19/2006 End: Contractor Name: GLACIER DRILLING Rig Release: Group: Rig Name: GLACIER DRILLING Rig Number: 1 Date From - To Hours Code Code Phase Description of Operations 2/10/2007 18:15 - 18:30 0.25 RUNPUL COIL CMPSTM RIH looking for module 2 flapper at 8088 to 8100' CTM without success. 18:30 - 20:00 1.50 RUNPUL COIL CMPSTM POOH with CT. 20:00 - 21:00 1.00 RURD COIL CMPSTM RD CTU. Secure well and SDFN. 2/11/2007 07:30 - 08:00 0.50 _ SAFETY MTG_ CMPSTM Hold pre-frac safety meeting. Discuss high pressure pumping, slips, trips, and falls, frac tracing, spill and incident reproting, etc. r 08:00 - 08:45 0.75 RURD_ STIM CMPSTM Gel up fluid, ensure line integrity, ensure well full of fluid. a~ 1 08:45 - 09:15 0.50 PUMP_ FRAC CMPSTM Perforate Module 3 from 8002 - 8012' with 4900 psig on yellow line. P Attempt to Frac mod 3 w/ BJ Lightning_V_1800 wtr based system at 15 BPM at max TP = 6200 psi. Treatment looked similar to module 2 with continual rise in BHP. Pump 20 bbl scour with 1 ppg. with no effect. Decided not to treat. Placed 800 Ibs prop (3.2% of design) (87.5 % 20/40 Ottawa & 12.5% 12/20 Flex Sand). Tot Load = 190 bbls. Traced pad volumes with SC-46 and all sand stages with Ir-192. Tagged all fluid w/ ProTechnics CFT 1400 chemical tracer (cumm. load = 678 bbls) (Strap chemical tanks post frac) 09:15 - 09:45 0.50 PUMP_ FRAC CMPSTM Pertorate Module 4 from 7960 - 7970' with 7000 psig on yellow line. Frac mod 4 w/ BJ Lightning_V_1800 wtr based system at 15 BPM at max TP = 5100 psi. Ramp 2.0 - 6.0 ppg. BHP treating flat at 6100 psi. BHP increasing as each stage hit perts with slope change when 6 ppg hit. Went to flush after 6 ppg. No 8ppg stage. Placed 22220 Ibs prop (68% of design) (87.5 % 20/40 Ottawa & 12.5% 12/20 Flex Sand). Tot Load = 252 bblsl. Traced pad volumes with SC-46 and all sand stages with Ir-192. Tagged all fluid w/ ProTechnics CFT 1500 chemical tracer (cumm. load = 930 bbls) (Strap chemical tanks post frac) 09:45 - 10:15 0.50 PUMP_ FRAC CMPSTM Perforate Module 5 from 7866 - 7876' with 8870 psig on yellow line. Frac mod 5 w/ BJ Lightning_V_1800 wtr based system at 15 BPM at max TP = 5100 psi. Ramp 2.0 - 8.0 ppg. Zone treating well through 6 ppg on perts. 8 ppg hit perts and had immediate 500 psi increase in BHP. Went to flush. Job screened out with 31 bbls plush pumped (37 bbl short) Placed 34210 Ibs prop (66.5% of design) (87.5 % 20/40 Ottawa & 12.5% 12/20 Flex Sand). Tot Load = 279 bblsl. Traced pad volumes with SC-46 and all sand stages with Ir-192. Tagged all fluid w/ ProTechnics CFT 1600 chemical tracer (cumm. load = 1209 bbls) (Strap chemical tanks post frac) 10:15 - 11:30 1.25 FLOW_ BACK CMPSTM Open well to flowback. Monitor flow. Well flowed back strong going from 300 pfig FTP to 150 psig FTP. Flowed back 127 bbls fluid until returns were fairly clean. 11:30 - 12:00 0.50 PUMP_ FRAC CMPSTM Perforate Module 6 from 7602 - 7612' with 2580 psig on red line. Frac mod 6 w/ BJ Lightning_V_1800 wtr based system at 15 BPM at max TP = 5600 psi. Ramp 2.0 - 8.0 ppg. BHP treating flat through 2 ppg stage. BHP increasing through 4 ppg stage. BHP started sawtoothing half way through 6 ppg with 8ppg stage at surface. Went to flush. Got flush away with increasing sawtooth character on BHP curve. Placed 28033 Ibs prop (55% of design) (87.5 % 20/40 Ottawa & 12.5% 12/20 Flex Sand). Tot Load =284 bblsl. Traced pad volumes with SC-46 and all sand stages with Ir-192. Tagged all fluid w/ ProTechnics CFT 1700 chemical tracer (cumm. load = 1493 bbls) (Strap chemical tanks post frac) 12:00 - 12:30 0.50 PUMP_ FRAC CMPSTM Perforate Module 7 from 7560 - 7570' with 4250 psig on red line. Frac mod 7 w/ BJ Lightning_V_1800 wtr based system at 15 BPM at max TP = 4500 psi. Ramp 2.0 - 8.0 ppg. BHP treating flat through 2 ppg stage. BHP increasing through 4, 6, and 8ppg stage. Went to flush after 8ppg stage. Got flush away with increasing BHP. Placed 38670 Ibs prop (70% of design) (87.5 % 20/40 Ottawa i;< 12.5% 12/20 Flex Sand). Tot Load = 318 bblsl. Traced pad volumes with SC-46 and all sand stages with Ir-192. Printed: 2!20/2007 11:23:11 AM • • Marathon Oil Company Page 4 of4 Operations Summary Report Legal Well Name: KENAI BELUGA UNIT 24-7X Common Well Name: KENAI BELUGA UNIT 24-7X Spud Date: 9/15/2006 Event Name: ORIGINAL COMPLETION Start: 11/19/2006 End: Contractor Name: GLACIER DRILLING Rig Release: Group: Rig Name: GLACIER DRILLING Rig Number: 1 Date From - To Hours Code Code Phase Description of Operations 2/11/2007 12:00 - 12:30 0.50 PUMP_ FRAC CMPSTM Tagged all fluid w/ ProTechnics CFT 1900 chemical tracer (cumm. load = 1811 bbls) (Strap chemical tanks post frac) 12:30 - 13:30 1.00 PUMP_ FRAC CMPSTM Perforate Module 8 from 7303 - 7313' with 7100 psig on red line. Frac mod 8 w/ BJ Lightning_V_1800 wtr based system at 15 BPM at max TP = 3850 psi. Ramp 2.0 - 10.0 ppg. Placed 48600 Ibs prop (100% of design) (87.5 % 20/40 Ottawa & 12.5% 12/20 Flex Sand). Tot Load = 345 bblsl. Traced pad volumes with SC-46 and all sand stages with Ir-192. Tagged all fluid w/ ProTechnics CFT 2000 chemical tracer (cumm. load = 2156 bbls) (Strap chemical tanks post frac) 13:30 - 14:00 0.50 PUMP_ FRAC CMPSTM Perforate Module 9 from 7019 - 7029' with 9150 psig on red line. Frac mod 9 w/ BJ Lightning_V_1800 wtr based system at 15 BPM at max TP = 3600 psi. Ramp 2.0 - 10.0 ppg (added 10 ppg stage). Placed 50132 Ibs prop (100% of design) (87.5 % 20/40 Ottawa & 12.5% 12/20 Flex Sand). Tot Load = 333 bblsl. Traced pad volumes with SC-46 and all sand stages with Ir-192. Tagged all fluid w/ ProTechnics CFT 2400 chemical tracer (cumm. load = 2489 bbls) (Strap chemical tanks post frac) 14:00 - 15:00 1.00 RURD_ STIM CMPSTM Hold RD safety meeting. RD frac equipment 15:00 - 18:15 3.25 RURD_ COIL CMPSTM Hold pre job safety meeting. RU CT injector head. PT to 4500/250. 18:15 - 20:15 2.00 RUNPUL COIL CMPSTM RIH with CT pumping .25 bpm. Tag module 7 flapper at 7581' CTM. Broke with 2000#. Tag module 6 flapper at 7623' CTM. Broke with 2500#. RIH to 8216' CTM and tag PBTD. Did not see module 9, 8, 5, 4, 3, or flappers. (Modoule 2 flapper may have been broken on CT cleanout after module 2 screenout) 20:15 - 21:00 0.75 CIRC_ CFLD CMPSTM CBU and POOH to above module 9 flapper. Returns clean. 21:00 - 21:30 0.50 RUNPUL COIL CMPSTM Shut down pumps and RIH looking for flappers. Found no additional flappers. RIH to 8151' CTM 21:30 - 22:00 0.50 JET_ N2_ CMPSTM Start pumping nitrogen to jet well in.at 400 scfm and 1 bpm fluid rate. 22:00 - 23:30 1.50 JET N2_ CMPSTM Increase nitrogen to 500 scfm and shut down fluid pump. Jet well with nitrogen. Seeing good amounts of proppant back in returns. 23:30 - 00:00 0.50 JET_ N2_ CMPSTM Wellhead pressure up to 566. Cut nitrogen to 400 scfm and POOH to above perfs. Well has good flow with good amounts of proppant in returns. 00:00 - 01:00 1.00 RUNPUL COIL CMPSTM Cut nitrogen and start POOH 01:00 - 02:00 1.00 FLOW_ BACK CMPSTM CT out of hole. Monitor WHP. WHP = 790 psig. WHP increased to 870 psig. Good proppant in returns. Well unloading at +/- 2 mmcfd with WHP = 1075 psig, fluid at +/- 2000 bfpd. Take well through flowline and isolate CT. 02:00 - 02:30 0.50 FLOW_ BACK CMPSTM Flolw well and unload same. Sand buster plugged up with proppant. Bypass sand buster and flow well to gas buster. 90 cut out on gas buste A (i Co 02:30 - 06:00 3.50 REPAIR EOIP CMPSTM Shut in well and start cleaning out plugged up sand buster and lines. 2/12/2007 06:00 - 10:30 4.50 FLOW_ TEST CMPSTM Clean out Sand buster and plugged lines and equipmenUinstrumentation. 10:30 - 06:00 19.50 FLOW_ TEST CMPSTM Open well to flow and test/clean up same. Put well to sales from 11:00 fo 12:00 noon. 2/13/2007 06:00 - 06:00 24.00 FLOW_ TEST CMPSTM Flow test well 2/14/2007 06:00 - 06:00 24.00 FLOW_ TEST CMPSTM Flow test well 2/15/2007 06:00 - 06:00 24.00 FLOW_ TEST CMPSTM Flow test well 2/16/2007 06:00 - 06:00 24.00 FLOW_ TEST CMPSTM Flow test well 2/17/2007 06:00 - 11:00 5.00 FLOW TEST CMPSTM Flow test well Printed: 2/20/2007 11:23:11 AM • as ®rt AAARATNON II a December 13, 2006 Alaska Oil & Gas Conservation Commission Attn: Howard Okland 333 W. 7`" Avenue, Suite 100 Anchorage, AK 99501 RE: Marathon Kenai Beluga Unit #24-7X Well (KBU 24-7X) CONFIDENTIAL Dear Mr. Okland: Alaskat Team United States Production Operations P.O. Box 3128 Houston, TX 77253 Telephone 713-296-3597 Fax 713-296-4469 The following confidential digital well data are enclosed for the above referenced well. KBU 24-7X As-Staked Plat ............................................................................................................... digital Daily Drilling Reports .................................................................................................... digital Directional Survey ......................................................................................................... digital EPOCH Mud Log Data .................................................................................................. digital Precision/Weatherford Well Log Data ...........................................................................digital One CD containing digital well logs and above data ..................................................... digital To download the Preview software, which allows access to all Weatherford Wireline data to view and plot logs (LAS, and DPK), follow the link below. http: //www. Weatherford.com/weatherford/groups/public/documents/evaluation/eds_downloadpreviewsoftware. hcsp Please indicate your receipt of this data by signing below by faxing to me at 713-296-4469 or by sending to my attention at the above address. Thank you, Courtney McElmoyl Advanced Geoscience Technician Received by: ~,l1 ~ ~ ~~ r,~ ~.-1 l ~~1; ~r~~=~-t%'~ Date: ~';=~ / ~ ~- / / r~'~ c - Enclosures ~o~ - ~a~- ¢ ~~ra~~ ,. '~. _-. ' i ' ~ FRANK H. MURKOWSKI, GOVERNOR Di1[>•~7~ OIL ~ ua47 333 W. T" AVENUE, SUITE 100 CO~SERQAilO1i COr~IISSIO~ ANCHORAGE, ALASKA 99501-3539 PHONE (907) 279-1433 FAX (907) 276-7542 James Thompson Sr. Completions Engineer Marathon Oil Company PO Box 196168 Anchorage, AK 99519-6168 Re: Kenai Field, Upper Tyonek Beluga Gas Pool, Kenai Beluga Unit 24-7X Sundry Number: 306-371 Dear Mr. Thompson: Enclosed is the approved Application for Sundry Approval relating to the above referenced well. Please note the conditions of approval set out in the enclosed form. When providing notice for a representative of the Commission to witness any required test, contact the Commission's petroleum field inspector at (907) 659-3607 (pager). As provided in AS 31.05.080, within 20 days after written notice of this decision, or such further time as the Commission grants for good cause shown, a person affected by it may file with the Commission an application for rehearing. A request for rehearing is considered timely if it is received by 4:30 PM on the 23rd day following the date of this letter, or the next working day if the 23rd day falls on a holiday or weekend. A person may not appeal a Commission decision to Superior Court unless rehearing has been requested. DATED this r~day of November, 2006 Encl. ~. Marathon MARATHON Oil Company November 15, 2006 1.+-ilk «l~z(~Bc (~~,~-~~~ 4 RPM r~Ji ~/os ~Q I~IIb~`~~r! wy Alaska Region `~~/ -~ ~ ~ Domestic Production ' I' P.O. Box 196168 - Anchorage, AK 99519-6168 Telephone 907/561-5311 Fax 907/5644 ~~ Winton Aubert Alaska Oil & Gas Conservation Commission 333 West 7th Ave, Suite 100 Anchorage, AK 99501 Reference: Application for Sundry Report 10-403 for permit 206-127 Field: Kenai Gas Field Well: Kenai Beluga Unit 24-7X (KBU 24-7X) Pad: 41-18 Dear Mr. Aubert, _ ... Enclosed please find an Application for Sundry Approvals form 10-403 for Kenai Beluga Unit Well #24-7X and associated attachments. This well has been completed cased hole with a 3.5" Excape monobore production string to surface. Request for approval is being made to perforate, fracture stimulate the 9 Excape modules placed in the well, and vent ~ gas during the initial post fracture treatment flowback period. Should you require further information, I can be reached at 713-232-9347 / 713-296- 2730, or by a-mail at JRThompson@MarathonOil.com. Sincerely, ~~ ~ames R. Thompson Sr. Completions Engineer JRT/smw Enclosures: AOGCC Form 10-403 Well bore Diagram Description Summary of proposal Request for approval to vent gas KBU 24-7X Cover Letter AOGCC Form 10-403.doc 11/15/2006 2:22:43 PM STATE OF ALASKA ALAS~IL AND GAS CONSERVATION COMMIS APPLICATION FOR SUNDRY APPROVALS 20 AAC 25.280 1. Type of Request: Abandon Suspend Operational shutdown Perforate ~ ~ Waiver Other Alter casing ^ Repair well ^ Plug Perforations ^ Stimulate ^~ Time Extension ^ Change approved program ^ Pull Tubing ^ Perforate New Pool ^ Re-enter Suspended Well ^ 2. Operator Name: 4. Current Well Class: 5. Permit to Drill Number: MARATHON OIL COMPANY Development Q Exploratory ^ 206-127 ~ 3. Address: Stratigraphic ^ Service ^ 6. API Number: P.O. BOX 196168, ANCHORAGE ,AK 99519-6168 50-133-20564-00 ~ 7. KB Elevation (ft): 9. Well Name and Number: 88 feet (21 feet AGL) Kenai Beluga Unit 24-7X f 8. Property Designation: 10. Field/Pools(s): ADL - 028142 Kenai Gas Field/Beluga -Upper Tyonek Pool 11. PRESENT WELL CONDITION SUMMARY Total Depth MD (ft): Total Depth TVD (ft): Effective Depth MD (ft): Effective Depth TVD (ft): Plugs (measured): Junk (measured): 8303' 7550' 8211' 7458' NA NA Casing Length Size MD TVD Burst Collapse Structural Conductor 120 20" 141 141 3060 1500 Surface 1606 13 3/8" 1627 1495 3450 1950 Intermediate 6047 9 5/8" 6068 5317 5750 3090 Production 8228 31/2" 8249 7496 10160 10540 Liner Perforation D (ft): Perforation Depth TVD (ft): Tubing Size: Tubing Grade: Tubing MD (ft): Nine int. 7 30'-814. Nine int. 6277'-7390'. 3-1/2" L-80 8249' Packers Type: Packers and SSSV MD (ft): N/A N/A 12. Attachments: Description Summary of Proposal ~ 13. Well Class after proposed work: ~' Detailed Operations Program ^ BOP Sketch ^ Exploratory ^ Development ^~ Service ^ 14. Estimated Date for 15. Well Status after proposed work: Commencing Operations: 1/10/2007 /~ Oil ^ Gas ^~ Plugged ^ Abandoned ^ 16. Verbal Approval: Date: WAG ^ GINJ ^ WINJ ^ WDSPL ^ Commission Representative: 17. I hereby certify that the foregoing is true and correct to the best of my knowledge. Contact Printed Name James R. Thompson Title Sr. Completions Engineer Signature Phone 713-232-9347 Date November 15, 2006 COMMISSION 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 ^ ' ~ Other: ~ ~, ~_l ~ ~ ~n J, iJ~ t ~V ~~ /~ Subsequent Form Required: `p 4, ~ APPROVED BY /' Approved by: COMMISSIONER THE COMMISSION Date: ~~. i~ TLJ Form 10-403 Revised 07/2005 `~ ~! 'a ;, ~ ~"" ~ ~~ ~~ Submit in Duplicate • -GL: 21.00' -THF: 21.70' 42' FNL, 599' FEL, Sec. 18, 4N, R11W, S.M. cxn = 4-3/4" Otis TOC (est.) - 500' above 9-5/8" shoe Excape System Details - Ceramic flapper valves below each module as follows: Flappers MD (RKB): Module 1 - NA Module 2 - 8088' Module 3 - 8018' Module 4 - 7976' Module 5 - 7883' Module 6 - 7616' Module 7 - 7574' Module 8 - 7319' Module 9 - 7035' KBU 24-7X ~ M Mwrewnrow Drive Pipe: 20", 133 ppf, K-55, to 141' RKB Surface Casing: 13-3/8", 68 ppf, K-55, BTC @ 1627' RKB, Cmt w/ 230 bbls / 520 sx. of % Class G Type 1 at 12.0 ppg. Int. Casing: 9-5/8", 40 ppf, L-80, BTC @ 6068' RKB. Cmt w/ 105 bbl of class Glead ~ @ 12.5 ppg and 84.5 bbls Class G tail @ 13.5 ppg Prod. Tubing: 3-1/2", 9.3 ppf, L-80, EUE 8rd with 6.25" OD control line protectors to 8249' RKB. Cmt w/ 96 bbls Class G Lead Cmt at 13.5 ppg followed by 136 bbls class G at 15.8 ppg 9 Excape modules placed Green control line fired module 1 Yellow control line fired modules 2 thru 9 Ceramic flapper valves below each module xcept for module 1 Module 1 - 8133-8143' (Tyonek) Module 2 - 8075-8085' (Tyonek) Module 3 - 8005-8015' (Tyonek) Module 4 - 7962-7972' (Beluga) Module 5 - 7868-7878' (Beluga) Module 6 - 7603-7613' (Beluga) Module 7 - 7561-7571' (Beluga) Module 8 - 7305-7315' (Beluga) Module 9 - 7020-7030' (Beluga) Well Name & Number: KBU 24-7X Lease: Kenai Gas Field County or Parish: Kenai State/Prov. Alaska Country: USA Perforations (MD) See Above (TVD) Angle/Perfs Angle @ KOP and Depth BHP: BHT: Completion Fluid: 6% KCL Dated Completed: 1/10/2007 Prepared By: J. R. Thompson Last Revison Date: 11/14/2006 TD - 8303' PBTD - 8211' KBU 24-7X,.Fracture Stimulation Desription Summary of Proposal Kenai Beluga 24-7X was drilled and cased as a 3.5" Monobore Excape completion containing nine Excape perforating modules. Each module will complete a different production interval with ten feet of perforations followed by individual fracture stimulations in each interval. Fracture stimulation operations will commence with the perforating and treatment of Module 1 followed by modules 2 through 9. All fracture stimulation operations,. are typically concluded in one day, unless screenouts occur. After all treatments have been performed, coiled tubing will be utilized to cleanout the wellbore of module isolation flappers and frac proppant to PBTD. The well will then be jetted in with nitrogen via the coil tubing. Once the well is flowing on its own, coil tubing will be pulled from the well and rigged down. Well testing operations will then commence and continue until an acceptable gas rate is acheived and produced frac water load volumes are at manageable levels. Once well is adequately ~,... cleaned up, well testing equipment will be rigged down and the well will be turned over to production. Request for Approval to Vent Gas Due to the nature of such fracture stimulations, large amounts of water are injected, along with the fracture proppant, that will have to be unloaded and cleaned up during the post fracture flowback/testing period. This unloading, or cleaning up period, requires the well to be vented to atmosphere until enough gas volume is achieved to flow the well into the high pressure sales gas system. The duration of this venting operation can last as little as a few hours up to a number of days based upon reservoir pressures, permeability, well pen`ormance, tubing size, and fracture placement success. For Marathon's gas well operations in the Kenai Gas Field, typical vent times are less than 48 hours. However, due to the uncertainty of exactly how long KBU 24-7X will be required to vent to atmosphere, this request is for a maximum vent period of 72 hours with a maximum vent volume during that period of 6 MMCF of methane gas. This volume is minimized due to the utilization of the Excape completion process which enables all intervals of interest to be fracture treated on the same day and l unloaded together at one time, instead of multiple frac days with multiple flowback periods each requiring the venting of gas. If you have any questions regarding this gas venting request, please get in touch with the contact person indicated on the Form 403. ~~ r FRANK H. MURKOWSKI, GOVERNOR Willard Tank Advanced Senior Drilling Engineer Marathon Oil Company PO Box 3.128 Houston, TX 77253 333 W. 7T" AVENUE, SUITE 100 ANCHORAGE, ALASKA 99501-3539 PHONE (907) 279-1433 FAX (907) 27&7542 Re: Kenai Gas Field, Upper Tyonek Beluga Gas Pool, KBU 24-7X Marathon Oil Company Permit No: 206-127 Surface Location: 442' FNL, 599' FEL, SEC. 18, T4N, R11W, S.M. Bottomhole Location: 560' FSL, 2,981' FEL, SEC. 7, T4N, R11W, S.M. Dear Mr. Tank: Enclosed is the approved application for permit to drill the above referenced development well. This permit to drill does not exempt you from obtaining additional permits or an approval required by law from other governmental agencies and does not authorize conducting drilling operations until all other required permits and approvals have been issued. In addition, the Commission reserves the right to withdraw the permit i:: *he 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, ~~ Cathy . Foerster Commissioner DATED this d y of September, 2006 cc: Department of Fish 8:; Game, Habitat Section w/o encl. Department of Environmental Conservation w/ o encl. STATE OF ALASKA AL/~ OIL AND GAS CONSERVATION COM~ION PERMIT TO DRILL 20 AAC 25.005 ~~t.~rE~ Y GLf .~ ~ P 1 3 2006 1 a. Type of Work: Drill Q Redrill ^ Re-entry ^ 1 b. Current Well Class: Exploratory ^ Stratigraphic Test ^ Service ^ Multiple Zone ~ • Development Oil ^ Development Gas • Q Single Zone ^ 1 c. Specify if well is ~'(#f8~&e~~°~t ~8S CQI13. C Coalbed Methane ^ as yydrates ~~"~~ Shale Gas ^ ~tiC~Oi'8~@ 2. Operator Name: Marathon Oil Company 5. Bond: Blanket ~ Single Well ^ Bond No. 5194234 11. Well Name and Number: KBU 24-7X 3. Address: P.O. Box 3128, Houston, TX 77253 6. Proposed Depth: MD: 8,527 TVD: 7,768 12. Field/Pool(s): Kenai Gas Field 4a. Location of Well (Governmental Section): Surface: 442' FNL, 599` FEL, Sec. 18, T4N, R11 W, S.M. 7. Property Designation: •. ADL 028142 Beluga/Upper Tyonek Pool Top of Productive Horizon: 560' FSL, 2,981' FEL, Sec. 7, T4N, R11 W, S.M. 8. Land Use Permit: 13. Approximate Spud Date: September 15, 2006 Total Depth: 560' FSL, 2,981' FEL, Sec. 7, T4N, R11 W, S.M. 9. Acres in Property: 2,560 14. Distance to Nearest Property: 380 ft (ADL 022330) 4b. Location of Well (State Base Plane Coordinates): Surface:x - 275,211.828 y - 2,356,292.642 Zone - 4 10. KB Elevation (Height above GL): (21' AGL) 88 feet ~ 15. Distance to Nearest Well Within Pool: 1,470 ft to KBU 23-7 16. Deviated wells: Kickoff depth: 200 feet Maximum Hole Angle: 39.13 degrees 17. Maximum Anticipated Pressures in psig (see 20 AAC 25.035) Downhole: 4,282 Surface: 2,453 18. Casing Program: Specifications Top -Setting Depth -Bottom Cement Quantity, c.f. or sacks Hole Casing Weight Grade Coupling Length MD TVD MD TVD (including stage data) Driven 20" 133 L-80 PE 79' 0' 0' 100' 100' 16" 13 3/8" 68 J-55 BTC 1,579' 0' 0' 1,600' 1,479' 492 sacks 12 1/4" 9 5/8" 40 L-80 BTC 6,126' 0' 0' 6,147' 5,388' 539 sacks 8 1/2" 3 1/2" 9.3 L-80 EUE 8rd 8,506' 0' 0' 8,527' . 7,768' 1,102 sacks 19. PRESENT WELL CONDITION SUMMARY (To be completed for Redrill and Re-Entry Operations) Total Depth MD (ft): Total Depth TVD (ft): Plugs (measured): Effect. Depth MD (ft): Effect. Depth TVD (ft): Junk (measured): Casing Length Size Cement Volume MD TVD Conductor/Stru ctu ra I Surface Intermediate Production Liner Perforation Depth MD (ft): Perforation Depth TVD (ft): 20. Attachments: Filing Fee ~ BOP Sketch 0 Drilling Program 0 Time v. Depth Plot ^ Shallow Hazard Analysis ^ Property Plat Q Diverter Sketch Q Seabed Report ^ Drilling Fluid Program ^~ 20 AAC 25.050 requirements ^ 21. Verbal Approval: Commission Representative: 22. I hereby certify that the foregoing is true and correct. Printed Name / Willard J. Tank Signature f C. ~ W? 7- Date Contact Title Advanced Senior Drilling Engineer Phone 713-296-3273 Date September 13, 2006 Commission Use Only Permit to Drill Number: ~~" ~2.7 PI Number: 50- i3,3"~5~j r•-~b Permit prova Date: ~. • Q~ See cover letter for other requirements. Conditions of approval : If box is checked, well may not be used to explore for, test, or produce coalbed methane, gas hydrates, or gas contained in shales; Other: T~~ ~ n ~ ~ ~ ~ ~ ~ ~ ~ ~ Samples req'd: Yes^ No ~ Mud log req'd: Yes^ No~ 1 tJ ~ ~ HZS measures: Yes^ No Directional svy req'd: Yes No^ APPROVED BY THE COMMISSION DATE: ,COMMISSIONER For 10-401 Revised 12/2005 Submit in Duplicate i' M Marathon MARATHON Oil Company Alaska Asset Team P.O. Box 196168 Anchorage, AK 99519-~ ~ ~UC Telephone 907/561-53 Fax 907/565-3076 SEP 0 1 2UUfi September 1, 2006 Alaska Oil & Gas Cons. Commission Anchorage Mr. John Norman Commissioner State of Alaska Alaska Oil & Gas Conservation Commission 333 West 7th Ave, Suite 100 Anchorage, AK 99501 Reference: Drilling Permit Application Field: Kenai Gas Field Well: KBU 24-7X Dear Mr. Norman Enclosed please find the PERMIT TO DRILL application, along with the associated attachments and filing fee of $100. The intent is to drill a well in the Beluga /Upper Tyonek Pool in the Kenai Gas Field. No completion is desired in the Sterling pool. If you require further information, I can be reached at 907-565-3032 or by a-mail at pkberga@marathonoil.com. Sincerely, ~~~j~`_ Peter K. Berga Drilling Superintendent Enclosures • ~ KBU 24-7X Drilling Program -Revised Marathon Oil Company Alaska / ~ MARATHON DRILLING PROGRAM Kenai Gas Field KBU 24-7X (Revised) Originator: Will Tank Reviewed by: MARATHON OIL COMPANY Pete Berga 2~~'~'~-L--- Brian Roy September 13, 2006 Date ~''l~-oF Date Date x/13/2006 CONFIDENTIAL MATERIAL Page 1 of 18 • • KBU 24-7X Marathon Oil Company Drilling Program -Revised Alaska TABLE OF CONTENTS 1. Emergency Response Information .................................................................................................................. 2 1.1 Directions to Location ...................................................................................................................................... 2 1.2 Rig Contact Numbers ...................................................................................................................................... 2 1.3 Marathon Emergency Response Contacts ..................................................................................................... 2 1.4 Outside Emergency Response ....................................................................................................................... 2 1.5 Marathon Contact List ..................................................................................................................................... 2 2. Regulatory Agency Contacts .......................................................................................................................... 2 2.1.1. Internal Regulatory Contact ............................................................................................................................ 2 2.1.2. Externai Regulatory Contact ........................................................................................................................... 2 3. Regulatory Compliance ................................................................................................................................... 2 4. Drilling Program Summary .............................................................................................................................. 2 4.1 General Well Data ........................................................................................................................................... 2 4.2 Working Interest Owners Information ............................................................................................................. 2 4.3 Geologic Program Summary ........................................................................................................................... 2 4.4 Summary of Potential Drilling Hazards ........................................................................................................... 2 4.5 Formation Evaluation Summary ...................................................................................................................... 2 4.6 Drilling Program Summary .............................................................................................................................. 2 4.7 Casing Program Summary .............................................................................................................................. 2 4.8 Casing Design ................................................................................................................................................. 2 4.9 Calculation of Maximum Anticipated Pressures (MAWP and MASP) ............................................................. 2 4.10 Casing Test Pressure Calculations ................................................................................................................. 2 4.11 Blowout Prevention Equipment, Testing and General Procedures ................................................................. 2 4.11.1. Function Testing .............................................................................................................................................. 2 4.11.2. Pressure Testing ............................................................................................................................................. 2 4.12 Wellhead Equipment Summary ..................................................................................................................... 2 4.13 Directional Program Summary ........................................................................................................................ 2 4.14 Directional Surveying Summary ...................................................................................................................... 2 4.15 Drilling Fluid Program Summary ..................................................................................................................... 2 4.16 Drilling Fluid Specifications ............................................................................................................................. 2 4.17 Solids Control Equipment ................................................................................................................................ 2 4.18 Cement Program Summary ............................................................................................................................ 2 4.19 Bit Summary .................................................................................................................................................... 2 4.20 Hydraulics Summary ....................................................................................................................................... 2 4.21 Formation Integrity Test Procedure ................................................................................................................ 2 x/13/2006 CONFIDENTIAL MATERIAL Page 2 of i8 • • KBU 24-7X Drilling Program -Revised Marathon Oil Company Alaska Attachments Group Attachment Attached Commercial Information AFE Da s/Cost vs. De th Curves X Pro'ect Ob'ectives and Scorecard RSO Codin Information X Re uisitions Vendor List Bonus Pro ram Drillin Contract Re ulato / HES Information Emer enc Evacuation Plan X H2S Contin enc Plan n/a Re ulato Permits X Re ulato Rules and Re ulations Risk Anal sis Miscellaneous Pro rams (Vendors Bit Pro osal X Cement Pro osal X Directional Plan X Fluids Pro ram X Wellhead E uipment - Descri tion/Drawin s Drill Strin and BHA Summa Ri Mobilization/Moorin Procedure n/a Geolo ical Information Location Ma w/ offsets X Offset Data Pro osed Formation Pore Pressure, Mud Wt & Fracture Gradient X Tem erature Curves Geolo is Structure Ma s Geolo is Cross Section Bath met Ma n/a Anal sis Riser Anal sis n/a Station Kee in Anal sis -Moorin DP n/a Stress Check Casin Desi n File X Maximum Allowable Over ull Miscellaneous Information Wellbore Dia ram n/a Ri Elevations X Well Location Dia ram X BOP Schematic X BOP Well Control Brid in Document Detailed Casin S ecifications X Detailed Drill Pi e S ecifications 9/13/2006 CONFIDENTIAL MATERIAL Page 3 of i8 • • KBU 24-7X Drilling Program -Revised Marathon Oil Company Alaska 1. Emerqencv Response Information 1.1 Directions to Location Method Directions Air Latitude - 60°26'37.991 "N Longitude - 151 °14'40.970"W From the Kenai airport, go 0.5 mile South on Willow Street. Turn East on Main Street Loop, go 0.3 miles. Continue East on Ground Bridge Access Road 3.2 miles. Turn West on Kalifornsky Beach Road. Go West and then South, go approximately 5 miles, just past the Kenai Gas Field office at Pad 34-31. Turn East onto the next lease road South of the Kenai Gas Field office. Travel Southeast 1 mile to pad 14-6. Go through pad and continue East 0.5 mile to pad 41-7. Turn and go 1 mile South to Pad 41-18. 1.2 Rig Contact Numbers Contact Office Cell Glacier Drilling Rig 1 Inlet Drilling Tool Pusher 907-283-1314 907-394-1321 Marathon Supervisor 907-283-1312 907-394-1317 1.3 Marathon Emerqencv Response Contacts Individual Postion Main Phone Alternative Kenai Gas Field Emergency Number 907-283-6465 CERT 24 hrs Notification 1-800-MOC-CERT CERT Crisis Center Houston 713-296-4230 713-296-4237 1.4 Outside Emerqencv Response Location Contact Phone Fire Kenai /Soldotna, Alaska 907-262-4792 Ambulance Hospital Kenai /Soldotna, Alaska Central Peninsula Hospital 907-262-4404 Police Kenai /Soldotna, Alaska Kenai Police Soldotna Police State Police 907-283-7879 907-262-4455 907-262-4453 Coast Guard 800-478-5555 Spill and Contamination Alaska Alaska State Spill Reporting National Response Center Oil /Toxic Chemical Spills 800-424-8802 Best Practices: 1 Policy: Post emergency notification information on rig floor, company man's and tool pushers' office Comments: 9/13/2006 CONFIDENTIAL MATERIAL Page 4 of 18 • • KBU 24-7X Drilling Program -Revised Marathon Oil Company Alaska 1.5 Marathon Contact List Contact Title Office Mobile Facsimile Home Will Tank Drilling Engineer 713-296-3273 713-203-8398 713-499-6737 832-934-2617 Pete Berga Drilling Superintendent 907-565-3032 907-529-0551 907-565-3076 907-346-3763 Bryan Roy Drilling Manager 713-296-3256 832-444-4772 713-499-6707 281-246-4686 Jennifer Enos Geologist 713-296-3319 713-408-3583 Clyde Scott Reservoir Engineer 713-296-2336 Ken Walsh Production Engineer 907-283-1311 907-394-3060 907-283-3050 John Nicholson Drilling Supervisor 907-283-1312 907-283-1313 Dan Byrd Drilling Supervisor 907-283-1312 907-283-1313 2. Requlatorv Agency Contacts 2.1.1. Internal Requlatorv Contact Contact Title Office Phone Cell Phone Home Phone Facsimile Chick Underwood Regulatory Compliance 713-296-3254 979-830-7927 979-836-9390 713-499-6748 2.1.2. External Requlatorv Contact Contact Title Office Phone Facsimile 24 hr Emer enc Pa er AOGCC 907-793-1236 BLM 907-267-1442 3. Requlatorv Compliance Regulation Requirement 20 AAC 25.035 a 10 A BOP testing interval requirement is now 14 days_ 20 AAC 25.035 a 10 F Requirement fora 24 hour notice to AOGCC prior to BOP test. Comments 9/13/2006 CONFIDENTIAL MATERIAL Page 5 of 18 • • KBU 24-7X Drilling Program -Revised Marathon Oil Company Alaska 4. Drilling Program Summarv 4.1 General Well Data Well Name KBU 24-7X Lease /License Surface Location 442' FNL, 599' FEL, Sec. 18, T4N, R11 W, S.M. WBS Code DD.06.13631.CAP.DRL Slot/Pad KGF Pad 41-18 Field Kenai Gas Field Spud Date 09/15/06 (est.) KB (above MSL) 88' ~ County/Province Kenai Peninsula API No. GL (above MSL) 67' State /Country Alaska Permit No. Perm. Datum KB Total MD 8,527' Well Class Development Water Depth N/A Total TVD 7,768' Rig Contractor Glacier Drilling Water Protection Depth Rig Name Glacier Rig 1 Best Practices: 1 Comments: 4.2 Working Interest Owners Information Com an Workin Interest Address Phone Facsimile Marathon 100% P.O.Box196168 907-561-5311 907-565-3076 Anchora e, AK 99519-6168 4.3 Geologic Program Summarv Surface Location Coordinates From Lease/Block Lines 442' FNL, 599' FEL, Sec. 18, T4N, R11 W, S.M. Latitude 60° 26' 37.991" N Longitude 151 ° 14' 40.970" W UTM North (Y) 2,356,292.642' UTM East (x) 275,211.828' Tolerance Formation MD -RKB (ft) TVD -RKB (ft) Pore Pressure (psi) Pore Pressure (ppg) Lithology Possible ~! Fluid Content Sterling A-8 (Not a Prod Target) 4,326 3,638 0.8 - 6.5 Sandstone Gas/Water Beluga (Not a Prod Target) 5,498 4,743 1.5 - 7.3 Sandstone Gas Middle Beluga (Primary Target) 6,172 5,413 3.8 - 8.8 Sandstone Gas Lower Beluga (Primary Target) 6,872 6,113 3.8 -,$8`~ Sandstone Gas Tyonek (Secondary Target) 8,027 7,268 5.8 = 9.0 Sandstone Gas ,~ 9/13/2006 CONFIDENTIAL MATERIAL Page 6 of 18 • ~ KBU 24-7X Drilling Program -Revised Marathon Oil Company Alaska Depth (KB) Horizontal Displacement (ft) MD TVD +N/-S +E/-W Tolerance Target (ft) (ft) Location (Y) (X) (ft) Middle Beluga 6,172 5,413 560' FSL, 2,981' FEL, Sec. 7, T4N, R11W, S.M. 1,002 -2,382 Circle 200' radius TD 8,527 7,768 560' FSL, 2,981' FEL, Sec. 7, T4N, R11W, S.M. 1,002 -2,382 Circle 200' radius 4.4 Summary of Potential Drilling Hazards Hazard Event D B Discussion Precautions (TVD) Lost Circulation in Low Pressure Intermediate Control losses by using sufficiently sized LCM, Take care not to surge the hole during Sterling and Beluga sands Hole including fibrous and calcium carbonate types. tripping operations. Potential Hazards Statement To comply with state regulations the Potential Hazards section and the well shut-in procedures must be posted in the driller's dog house. The man on the brake (driller or relief driller) is responsible for shutting the well in (BOPE or diverter as applicable) as soon as warning signs of a kick are detected and an influx is suspected or confirmed. A copy of the approved permit to drill must be kept on location and be readily available to the AOGCC or BLM inspector. This well's primary objective is gas and no oil sands are expected to be encountered. No H2S is anticipated. ~ Gas sands will be encountered from +/- 4,326' MD (3,638' TVD) to total depth of the well. These sands will run from highly depleted to slightly above normal pressure. Lost circulation and differential sticking are potential hazards in some of the Sterling and Beluga sands. The Flo-Pro mud system that will be used to drill the well will help reduce these risks and lost circulation materials will be on location. Weighting material will available on location for proper well control. Best Practices: 1 Comments: 4.5 Formation Evaluation Summary Interval LWD Electric Logs Mud. Logs Surface 0' - 1,600' MD None None None Intermediate 1,600' - 6,147' MD None None Basic with GCA, shale density, temperature in and out, sample collection (10' samples). Production 6,147' - 7,768' MD None Reeves Quad Combo, MFT. Pull GR- Neutron to surface. Basic with GCA, shale density, temperature in and out, sample collection (10' samples). Completion N/A GR, CCL, CBL N/A Comments: 9/13/2006 CONFIDENTIAL MATERIAL Page 7 of 18 r • KBU 24-7X Drilling Program -Revised Marathon Oil Company Alaska 4.6 Drilling Program Summary Drive Pipe: N/A Conductor: 20" set to approximately 100', prior to drilling rig move. MIRU drilling rig. NU diverter. 1. RU crane and hammer. Drive 20" conductor to +/-100 ft. RKB. RD crane and hammer. 2. Move in and rig up rotary drilling rig. 3. Install starting head 20" SLC x 21 1/4", 2M flanged. 4. Nipple up 21 1/4", 2M diverter, 16" diverter valve, and 16" diverter line. 5. Function test diverter and diverter valve. Best Practices: 1 Comments: Surface: Drill 16" hole to +/- 1,600' set 13-3/8" casing. 1. Drill a 16" hole to 1,600' MD (1,479' TVD) per the directional plan. ` 2. RIH with 13 3/8" casing and hang off in the elevators. Make up stab-in sub and centralizer on 5" drill pipe. TIH with inner string and latch into stab-in float collar. Cement 13 3/8" casing. Sting out, shear out drill pipe wiper plug, and circulate drill pipe clean. TOOH with inner string. l 3. Cut off 13 3/8" casing. ND diverter. 4. Install 13 3/8" slip lock connection X 13 5/8" 5M flanged multibowl wellhead. 5. NU 13 5/8" 5M BOP'S. Test BOP'S and choke manifold to 250/3,000 psi. 6. Set wear bushing. 7. Test surface casing to 1,500 psi. Best Practices: 1 During cementing operations, take returns in the cellar, instead of into the pits. Eliminates the clean up of pits from cement that circulated to surface. Vac trucks will pull from cellar. Comments: Intermediate: Drill 12-1/4" hole to +/- 6,147' set 9 5/8" casing. 1. PU 12 1/4" PDC bit and directional BHA. Drill out float equipment and 20' of new formation. CBU. 2. Test shoe to leak off. Estimated EMW is 15 ppg. 3. Drill 12 1/4" directional hole to 6,147' MD (5,388' TVD) as per directional program, short tripping as required. 4. At TD circulate hole clean. Make wiper trip. TOOH and lay down BHA. Pull wear bushing. 5. Change out variable pipe rams with 9 5/8" casing rams. Run test plug and test casing rams to 3,000 psi. 6. Run and cement 9 5/8" casing. Land hanger in multibowl wellhead. 7. Back out landing joint. Change out 9 5/8" casing rams with variable pipe rams. Run test plug and test rams to 250/3,000 psi. l 8. Set wear bushing. Test casing to 1,500 psi. Best Practices: 1 Pre-heat mud mix water to help in early shaker screen blinding issues with the mud. Comments: Due to anticipated losses in the Sterling and Upper Beluga, both calcium carbonate and fibrous material may be needed. Care must be taken on trips to minimize the possibility of surging the hole. 9/13/2006 CONFIDENTIAL MATERIAL Page 8 of 18 • s KBU 24-7X Drilling Program -Revised Marathon Oil Company Alaska Production: Drill 8 1/2" hole to +/- 8,527' set 3-1/2" EXCAPE string. 1. PU 8 1/2" bit and directional BHA. Drill float equipment and 20' of new formation. CBU. 2. Test shoe to leak off. Estimated EMW 13 ppg. 3. Drill 8 1/2" hole to an anticipated TD of 8,527' MD (7,768' TVD) as per the directional program, short tripping. as required. 4. At TD circulate hole clean. Make wiper trip. TOOH. 5. RU Precision. Run open hole logs as per plan. RD logging company. 6. TIH w/ 8 1/2" bit to TD for wiper trip. TOOH to 9 5/8" shoe and circulate until log evaluation is complete for picking EXCAPE modules. After picks are made, trip to TD and circulate clean. TOOH and lay down BHA and drill pipe. Pull wear bushing. 7. RU and run 3 1/2" EXCAPE casing string. RU logging company to correlate EXCAPE modules to open hole logs. RD logging company. 8. Cement 3 1/2" casing while reciprocating. Bump plug with 500 psi over displacement pressure. WOC. 9. PU 3 1/2" casing. PU BOP stack. Make control line and electric line connections to tubing bonnet assembly. Set slips. Cut 3 1/2" casing. 10. LD BOP. Set 3 1/2" packoff. NU 13 5/8" 5M X 3 1/16" 10M tubing head adapter and 3 1/16" 10M tree. Test tree to 5,000 psi. 11. Rig down and move out drilling rig. Note: Drill all hole sections with 5" drillpipe. Final core points will be determined by Geology. Perforating guns will be run on the outside of the 3 1 /2" production casing with a flapper valve just. below each perforating gun. -Guns to be activated by control line to surface. Best Practices: 1 Drill all hole sections with 5" drillpipe to maximize hole cleaning hydraulics. 2 Do not circulate on bottom longer than 1 hour prior to moving pipe on a short trip to minimize hole washout. This is important when waiting on log analysis to give EXCAPE module placement points. 3 Put lubricant in prior to drill out of intermediate shoe. 5% Lubetex is normally required, possibly more depending on solids in the mud. Comments: Completion: Completion will be done without a rig. Best Practices: 1 Comments: 9/13/2006 CONFIDENTIAL MATERIAL Page 9 of 18 • • KBU 24-7X Drilling Program -Revised Marathon Oil Company Alaska 4.7 Casing Program Summary MD (ft) Connection A PI Ratings Casing Makeup Hole ~, ,-. a = o ~, ' Size Weight ID Drift / ~ O. D. Torque Size ~ m' 8 ~ ~ 0 ~- ~ n ~ v (in) Top Bottom (Ibs/ft) (in) (in) Grade Type (in) (ft-Ibs) (in) v ~ 133/8 0 1,600 68 12.415 12.259 J-55 BTC 14.375 N/A* 16 3,450 1,950 1,140 9 5/8 0 6,147 40 8.835 8.679 L-80 BTC 10.625 N/A * 12 1/4 5,750 3,090 979 31/2 0 8,527 9.3 2,992 2.867 L-80 8rd 4.5 3,200 81/2 10,160 10,530 207 Best Practices: 1 Have float equipment made up at Tubescope's yard prior to bringing casing to location. Buck on all equipment to the pin end and not make up to box below, due to rig height restrictions. 2 * -Make up buttress connection to proper mark, not to a torque value. Comments: 4.8 Casing Design I Casing Shoe Safety Factors Setting Maximum Casing Depth Mud Wt Frac. Form Surface ~ n c o Size Weight TVD When Set Grad Press Pressure ~ o (in) (Ib/ft) Grade (ft) (Ib/gal) (Ib/gal) (Ib/gal) (psi) m U r 13 3/8 68 J-55 1,479 9.4 15.0 8.4 0 2.30 2.70" ~~ 2.69 9 5/8 40 L-80 5,388 9.5 13.0 1.5 2,453 1.86 `1.16: 2.62 31/2 9.3 L-80 7,768 10.6 15.0 10.6 2,453 1.17 X2:46 1.30 4.9 Calculation of Maximum Anticipated Pressures (MAWP and MASP) Setting Casing Depth Size TVD MAWP * MASP ** Mud/Gas (in) (ft) (psi) (psi) Percentage 13 3/8 1,479 2,330 0 30/70 9 5/8 5,388 3,997 2,453 30/70 3 1 /2 7,768 6,668 2,453 30/70 MAW P =Maximum allowable working pressure ** MASP =Maximum anticipated surface pressure The calculation method for MASPeHP has been modified from the standard AOGCC use of a Bottom Hole Pressure - 0.1 psi/ft gas gradient to what Marathon considers a more accurate Bottom Hole Pressure - 30% Mud Column - 70% Gas Column. This method follows the MMS standard for any well with a TVD of 12,000' or less. Marathon believes that constant gas monitoring and proper rig supervisor well control training will prevent the possibility of a wellbore being completely evacuated with only f a gas gradient remaining. 9/13/2006 CONFIDENTIAL MATERIAL Page 10 of 18 • • KBU 24-7X Drilling Program -Revised Marathon Oil Company Alaska Surface casing: 13 3/8" (1,600' MD, 1,479' TVD) MASPfrac =((Fracture gradient at shoe) x .052 x TVDsnce) -Hydrostatic pressure of gas column at the shoe. MASPfrac = (15.0 ppg x .052 x 1,479') - (0.1 psl/ft x 1,479') MASPfrac = 1,154 psi - 148 psl MASPfrac = 1,006 psi. MASPbnP = BHPopen no,e,d -Hydrostatic pressure of mud portion -Hydrostatic pressure of gas portion MASPbnP = (1.50 ppg x .052 x 5,388') - (0.3 x 9.5 ppg x .052 x 5,388') - (0.7 x 0.1 psi/ft x 5,388') MASPbnP = 420 psi - 799 psi - 377 psi MASPbnP = 0 psi MASP =MASPbnP = 0 psi MAWP = (0.7 x Casing Burst) - (Mud Wt. -Backup Fluid Wt.) x .052 x TVD MAW P = (0.7 x 3,450) - (9.4 - 8.3) x .052 x 1,479' MAW P = 2,415 psi - 85 psi = 2,330 psi Intermediate casing: 9 5/8" (6,147' MD 5 388' TVD) MASPfrac =((Fracture gradient at shoe) x .052 x TVDsnoe) -Hydrostatic pressure of gas column at the shoe. MASPfrac = (13.0 ppg x .052 x 5,388') - (0.1 psi/ft x 5,388') MASPfrac = 3,642 psi - 539 psi MASPfrac = 3,103 psi. MASPbnP = Po en Hole td -Hydrostatic pressure of mud portion -Hydrostatic pressure of gas portion MASPbnP = 10. ppg x .052 x 7,768') - (0.3 x 10.6 ppg x .052 x 7,768') - (0.7 x 0.1 psi/ft x 7,768') MASPbnP = 2 psi - 1,285 psi - 544 psi MASPbnP = 2,453 psi MASP =MASPbnP.= 2,453 psi MAW P = (0.7 x Casing Burst) - (Mud Wt. -Backup Fluid Wt.) x .052 x TVD MAW P = (0.7 x 5,750) - (9.5 - 9.4) x .052 x 5,388' MAW P = 4,025 psi - 28 psi = 3,997 psi Production casing: 3 1/2" (8,527' MD. 7,768' TVDI MASPfrac =((Fracture gradient at shoe) x .052 x TVDsnoe) -Hydrostatic pressure of gas column at the shoe. MASPfrac = (15.0 ppg x .052 x 7,768') - (0.1 psi/ft x 7,768') MASPfrac = 6,059 psi - 777 psi MASPfrac = 5,282 psi. MASPbnP = BHPopen Hole td -Hydrostatic pressure of mud portion -Hydrostatic pressure of gas portion MASPbnP = (10.6 ppg x .052 x 7,768') - (0.3 x 10.6 ppg x .052 x 7,768') - (0.7 x 0.1 psi/ft x 7,768') MASPbnP = 4,282~psi - 1,285 psi - 544 psi MASPbnP = 2,453 psi MASP =MASPbnP = 2,453 psi . MAW P = (0.7 x Casing Burst) - (Mud Wt. -Backup Fluid Wt.) x .052 x TVD MAWP = (0.7 x 10,160) - (10.6 - 9.5) x .052 x 7,768' MAW P = 7,112 psi - 444 psi = 6,668 psi 9/13/2006 CONFIDENTIAL MATERIAL Page 11 of 18 KBU 24-7X Drilling Program -Revised Marathon Oil Company Alaska Best Practices: 1 Comments: 4.10 Casing Test Pressure Calculations Casing test pressure calculations are based on the lesser of (1) MASP, or (2) 70% of rated burst pressure of the casing adjusted for the mud weight used during the test less a 8.3 ppg back-up unless otherwise noted. AOGCC regulations state that casing pressures must be 50% of the BOP working pressure documented on the approved permit to drill. Best Practices: 1 Comments: 4.11 Blowout Prevention Equipment, Testing and General Procedures BOP PROGRAM I , Casing Test Test Casing Test Fluid Pressure Size MAWP MASP press Density BOPS Low/High Casing (in) (psi) (psi) (psi) (Ib/gal) Size & Rating (psi) (1) 13-5/8" 5M annular (1) 13-5/8" 5M pipe ram Surface 13 3/8 2,330 0 1,500 9.0 250/3,000 (1) 13 5/8" 5M blind ram (1) 13-5/8" 5M drilling spool with 3-1/8" 5M outlets (1) 13-5/8" 5M annular (1) 13-5/8" 5M pipe ram Intermediate 9 5/8 3,997 2,453 1,500 9 5 250/3,000 (1) 13 5/8" 5M blind ram (1) 13-5/8" 5M drilling spool with 3-1/8" 5M outlets (1) 13-5/8" 5M annular (1) 13-5/8" 5M pipe ram Production 3 1/2 6,668 2,453 1,500 10.6 250/3,000 (1) 13 5/8" 5M blind ram (1) 13-5/8" 5M drilling spool with 3-1/8" 5M outlets Blowout Preventers The blowout preventer stack will consist of a 13-5/8" x 5000 psi annular preventer, a 13-5/8" x 5000 psi double gate ram type preventer with blind rams in the bottom and pipe rams in the top and a 13-5/8" x 5000 psi drilling spool (mud cross) with 3-1/8" x 5000 psi outlets. The choke manifold will be rated 3-1/8" x 5000 psi. It will include a remote hydraulic actuated choke and a hand adjustable choke. Also included is a poor-boy gas buster, and avacuum-type degasser. A flow sensor will be installed in the flowline and the mud pits will contain sensors to measure the volume of fluid in the surface mud system. Both sensors will contain readouts convenient to the drillers console. 4.11.1. Function Testing Function Regularly. I 9/13/2006 CONFIDENTIAL MATERIAL Page 12 of 18 • • KBU 24-7X Drilling Program -Revised Marathon Oil Company Alaska 4.11.2. Pressure Testing The Marathon Drilling Supervisor will verify all pressure tests of BOP's, surface lines, seals, casings and FIT or LOT tests. All tests are to be recorded on the IADC and daily drilling reports. Best Practices: 1 Comments: 4.12 Wellhead Equipment Summary Component Description Casing Hanger Type Casing Head 13-5/8" 3M X 13-3/8" Slip Loc W/ 2, 2" LPO, Landing Base for 20" Conductor, U, AA, PSL1, PR1 13 5/8" x 9 5/8" Fluted Mandrel Tubing Head 13-5/8" 3M Studded Bottom X 13-5/8" 5M Flg Top, W/ 2, 2-1/16" 5M Studded Outlets, 13 5/8" x 3 1/2" Manual U,AA,PSLI,PR1 Slip Adapter Flange 13-5/8" 5M X 3-1/16" 10M W/Seal Pocket and 3" H BPV Threads Best Practices: 1 Comments: Control lines and electric cable for the EXCAPE system will be routed through the adapter flange ports. 4.13 Directional Program Summarv Build Turn Coordinates Sec. No. Description MD (ft) TVD (tt) Rate (°/100') Rate (°/100') Dogleg (°/100') Inclination (deg) Azimuth (deg) +N/-S (ft) +E/-W (ft) VS (ft) 1 Tie On 0 0 0 0 0 0 292.815 0 0 0 2 KOP 200.00 - 200.00 0 0 0 0 292.815 0 0 0 3 Build up Section 3.00 0 3.00 292.815 4 End of Build 1,504.35 1,405.29 3.00 0 3.00 39.13 292.815 166.10 -394.85 428.36 5 Hold Section 0 0 0 39.13 292.815 6 End of Hold 3,563.27 3,002.42 0 0 0 39.13 292.815 669.94 -1,592.55 1,727.73 7 Drop Section -1.50 0 1.50 292.815 8 End of Drop 6,171.97 5,413.00 -1.50 0 1.50 0 292.815 1,002.14 -2,382.24 2,584.45 9 TD 8,526.97 7,768.00 0 0 0 0 292.815 1,002.14 -2,382.24 2,584.45 9/13/2006 CONFIDENTIAL MATERIAL Page 13 of 18 • • KBU 24-7X Drilling Program -Revised Comments: Vertical section calculated from a reference azimu th of 292.82° taken from surface location to bottom hole location. Potential Well Interference: Well Distance (ft) Depth (MD) KBU 33-7 242.40 1,117 KU 24-7 317.34 473 KU 24-7RD 233.94 4,766 KBU 43-7X 1,975.96 8,191 No serious interference exists. See attached directional plan and anticollision analysis for more details Best Practices: 1 Comments: 4.14 Directional Surveying Summary Marathon Oil Company Alaska Interval MD (ft) MWD Survey Magnetic Multishot Gyro Multishot Other Survey Tool Remarks Surface 0- 1,600' X Intermediate 1,600'-6,147' X Production 6,147' - 8,527' X Best Practices: 1 Comments: 9/13/2006 CONFIDENTIAL MATERIAL Page 14 of 18 • • KBU 24-7X Drilling Program -Revised Marathon Oil Company Alaska 4.15 Drillinq Fluid Program Summary Interval -TVD Minimum Inventory From To Density Gel (ft) (ft) (Ib/gal) Fluid Description Additives Viscosifier Barite 0 1,479 8.6 - 9.4 , Gel / Gelex Spud Mud Gel, Gelex, Soda Ash, Caustic, Barite, Polypac Supreme UL Flo-Vis, Polypac Supreme UL, KCI, SafeCarb 1,479 5,338 9.1 - 9.5 6% Flo-Pro NT w/ Safecarb 10,40,250, Mix II, Barite, Caustic, Conqor 404, Sodium Meta Bisulfate, Lubetex, Asphasol, Klagard Flo-Vis, Polypac Supreme UL, KCI, SafeCarb 10 5,338 7,768 9.1 - 10.6 - 6% Flo-Pro NT w/ Safecarb & 40, Barite, Caustic, Klagard, Conqor 404, Sodium Meta Bisulfate, Lubetex, EMI 920, Asphasol Best Practices: 1 Because the production zone will be fracture stimulated, the mud system from the intermediate section will be re-used for the production hole after cleanup through the on-site centrifuge. Comments: 4.16 Drillinq Fluid Specifications Interval -TVD LSRV Drill From (ft) To (ft) Density (Ib/gal) Vis (sec/qt) 1 min (Ib./100ft2) PV (cP) YP (Ib/100 ftz) Fluid Loss (cc) pH Solids (%) 0 1,479 8.6 - 9.4 - 60 - 100 N/A 25 - 35 NC - 12 +/- 9.5 < 7 1,479 5,338 9.1 - 9.5 30,000 + 8 - 12 7 - 9 +/- 9.5 < 7.5 5,338 7,768 9.1 - 10.6 ~ 30,000 + 10 - 14 6 - 8 +/- 9.5 +/- 5 Best Practices: 1 As a standard practice for long string completions, the drilling mud that will remain above the top of cement on the 3 ~/z" production casing will be treated with corrosion inhibitor (Conqor 303A) at a concentration of 1 drum per 100 barrels of drilling fluid. Comments: See mud prognosis for details. Sized CaCOs (SafeCarb) will be used to control leakoff. 9/13/2006 CONFIDENTIAL MATERIAL Page 15 of 18 ~ • KBU 24-7X Drilling Program -Revised 4.17 Solids Control Equipment Marathon Oil Company Alaska o ~ N N ~ U ~ ~ (~ N "a ~ ~ ~ ~ ~ ~ C N U y Y R ~ V - c °~ ~ L N N ~ N 7 ~ O ° Interval ~ ~ ~ ~ U V U r .i Comments 0 - 8,527' MD X X X X Closed Loop System, Full Containment, Run shakers with finest screens possible Item Equipment Specifications (quantity, design type, brand, model, flow capacity, etc) Shaker 2 -Swaco Mongoose PT Desander N/A Desilter 1 -Derrick Model 0522 Mud Cleaner N/A Centrifuge 2 - MI/Swaco units Cuttings Dryer N/A Cuttings Injection Marathon G&I Facility Zero Discharge N/A Best Practices: 1 Have vacuum trucks pull fluids from trough above slop pit to more efficiently pull fluids for disposal. This minimizes water added to the solids to suspend for pickup by the trucks, thus minimizing total volume to be disposed of. Comments: 9n3/2o06 CONFIDENTIAL MATERIAL Page is of i8 • • KBU 24-7X Drilling Program -Revised Marathon Oil Company Alaska 4.18 Cement Program Summary De pth Gauge Top of Cement Gauge Ann Vol Slurry Casing Size (~n) MD (ft) TVD (ft) Hole Size (in) MD (ft) TVD (ft) Ann Vol To TOC (ft3) With OH Excess (ft3) Density LeadlTail (PPg) Open Hole Excess (%) Thickening Time (hrs) 20 100 100 Driven N/A 13 3/8 1,600 1,479 16 0 0 725 1,236 12.0 75 8 9 5/8 6,147 5,388 12 1/4 3,800 3,191 735 1,067 12.5 / 13.5 40 8 31/2 8,527 7,768 81/2 5,600 4,843 975 1,289 15.8 40 N/A Mix Water Compressive Casing Size Density Qty Yield Slurry Vol TOC MD Oty WL FW Strength (psi) (in) Slurry Cement Description (Ib/gal) (sx) (ft3/sx) (ft3) (ft) (gal/sx) Type (cc) (%) 8 hr 24 hr 13 3/8 Tail Type I Cement 12.0 492 2.51 1,236 0 11.28 Fresh 812 0 196 818 9 5/8 Lead Class"G" 12.5 281. 2.10 590 3,800 11.92 Fresh 273 769 Tail Class "G" 13.5 258 1.85 477 5,147 9.31 Fresh 0 0 208 981 3 1/2 Tail Class "G" 15.8 1,102 1.17 1,289 5,600 4.97 Fresh 24 0 226 2,632 Best Practices: 1 Pump several fluid calipers at TD to help with the hole volume determination from the open hole caliper log. Comments: See cement prognosis for details and spacer specifications. 4.19 Bit Summarv Interval - MD Type Recommended Estimated From (ft) To (ft) Size (in) Manufacturer Model No. IADC WOB (kips) RPM Rotating Hours Expected Minimum ROP (ft/hr) 0 1,600 16 Christensen MX-1 115 1 - 4 80 - 350 1,600 6,147 12 1/4 Christensen HCM 5062 M323 Up to 52 Motor 6,147 8,527 8 1/2 Christensen HCM605 M323 Up to 25 Motor Best Practices: 1 Drill all hole sections with 5" drillpipe to maximize hole cleaning hydraulics. Comments: See bit prognosis for additional information. If a second bit is necessary for the 12 ~/a" hole a MX-C3 (IADC 137) should be used to finish this section. Back up bits for the 8'/z" hole section will consist of mill tooth and TCI tricone bits. 9/13/2006 CONFIDENTIAL MATERIAL Page 17 of 18 KBU 24-7X Drilling Program -Revised Marathon Oil Company Alaska 4.20 Hydraulics Summary Qty Make Model Liner ID (in) Stroke (in) Max Press C~ 90% WP (psi) Displacement C~ 95% Vol. eff (gal/stroke) Max Rate ~ 95% Vol. eff (spm/gpm) Hole Sections Used On 5 8 2,597 2.04 1251255 Surface 3 National Oil Well A600PT 5 8 2,597 2.04 125 / 255 Intermediate 5 8 2,597 2.04 125 / 255 Production Est. Hole Pump Standpipe Openhole Nozzle Depth-MD Size Rate Pressure Min AV MW ECD Size OP at bit (ft) (in) (gpm) (psi) (fpm) (ppg) (ppg) (32"s) (psi Remarks (Drill string configuration) 0 - 1,600 16 650+ 1,500 69 9.0 3 - 18's 1-15 1,600 - 6,147 12 1/4 662 2,000 130 9.5 6 - 13's Actual Data from CLU 8 (~ 6,722' MD) 6,147 - 8,527 8 1/2 480 2,000 249 10.6 5 - 15's Actual Data from CLU 10 (C~3 8,450' MD) Best Practices: 1 Comments: 4.21 Formation Integrity Test Procedure Surface and Intermediate casing shoes will be tested to Leak-off. Prior to drilling out of casing strings, test BOPs and casing to the specified pressure listed in the BOP Program section. Plot test and record volume required on the drilling report. Leak-off tests (LOT) are to be conducted as described below: 1. Drill 20' to 25' of new formation below the casing shoe and condition the mud to the same properties in and out. 2. Pull drill string into the casing shoe and close ram preventer, and line up to the choke manifold with a closed choke. 3. Begin slowly pumping fluid down the drill string at 1/2 bpm while recording casing and drillpipe pressures at 1/2 bbl intervals. A running plot of pressure versus volume should be kept by the drilling foreman while the test is in progress. 4. Stop pumping when the pressure curve departs form a straight line sufficiently to indicate leakage into the formation. Record as ppg equivalent mud density. in the IADC and morning reports. 5. Monitor and plot pressure drop and time after shut-in for 10 minutes or until the shut-in pressure stabilizes. Best Practices: 1 Comments: 9/13/2006 CONFIDENTIAL MATERIAL Page 18 of 18 • • Marathon Oil Well KBU 24-7X Diverter 21 1/4" 2M Diverter _~ 16" Automatic Knife Valve I I~ Diverter Spool 16" Diverter Line • Marathon Oil Well KBU 24-7X BOP Stack Flow Nipple 13 5/8" 5M Annular Preventer ~ 13 5/8" 5M Double Pipe Ram Ram Preventer 2 1/16" 5M Blind Ram Check Valve 2 1/16" 5M Manually Operated Valves ~u~--~WJLJ~-~I-~LJ Kill 13 5/8" 5M Cross 13 5/8" 5M x 13 5/8" 5M Drilling Spool • 3 Z 3 1/8" 5M Manually Operated Valve ~~~~ /~ 1111111 ICI II I 1 3 1/8" 5M Hydraulically Operated Valve Bottom of mud cross must be 24-45" from ground level for Glacier 1 rig placement. 13 5/8" 5M Tubing Head Flange • To Gas Buster X I °~~ X Marathon Oil Well KBU 24-7X Choke Manifold • To Blooey Line Bleed off Line to Shakers X) (X 0 00 °0008 X x 1 2 9/16" 10M Swaco Hydraulically Operated Choke x ~x ~ ~ 3" 5M Valves ~~~ II I l~ x ~f l II ITZ"x x From BOP Stack 3 1/8" 5M Manually Adjustable Choke • • Surface Use Plan for Kenai Beluga Unit, well KBU 24-7X Surface location: Anticipated at 442' FNL, 599' FEL, Sec. 18, T4N, R11 W, S.M. 1) Existing Roads Existing roads which will be used for access to KBU 24-7X are shown on the attached map. Kenai, Alaska is the nearest town to the site. 2) Access Roads to be Constructed or Reconstructed No new roads will be required to access KBU 24-7X. 3) Location of existing wells Well KBU 24-7X will be drilled on Kenai Gas Field (KGF) pad 41-18. A pad drawing is enclosed that shows existing wells and the location of KBU 24-7X. 4) Location of existing and/or proposed facilities The locations of existing production facilities in the KGF pad 41-18 are shown on the enclosed pad drawing. A flow line will be installed from the KBU 24-7X wellhead to an existing line heater and a new separator. 5) Location of Water Supply A water supply well exists on the pad that KBU 24-7X will be drilled from. This is shown on the pad drawing. 6) Construction Materials No construction is planned on the pad. 7) Methods of handling waste disposal; a) Mud and Cuttings Cuttings will be dewatered on location. The cuttings and excess mud will be disposed of into Well KU 11-17, a Class II disposal well (AOGCC Disposal Injection Order No.9, ~ Permit #81-176) on pad 41-18. b) Garbage All household and approved industrial garbage will be hauled to the Kenai Peninsula Borough Soldotna Landfill. c) Completion Fluids Clear fluids will be hauled to Pad 34-31 of the Kenai Gas field and injected in Well WD #1, an approved disposal well (AOGCC Permit #7-194). d) Chemicals Unused chemicals will be returned to the vendors that provided them. Efforts will be • made to minimize the use of all chemicals. e) Sewage Sewage will be hauled to the Kenai sanitation facility. 8) Ancillary Facilities • A minimal camp will be established on the pad to house various supervisory and service company personnel. Approximately four trailer house type structures will be required for this purpose. Bottled water will be used for human consumption. Potable water will be obtained from the existing water well on the pad. S & R will collect and transport sanitary wastes to their ADC approved disposal facility. No additional structures will be necessary. 9) Plans for reclamation of the surface KBU 24-7X will be drilled from an existing pad. Reclamation of the pad will occur after the abandonment of KBU 24-7X and the other existing wells on the pad. Approval of the plan of reclamation will be obtained from CIRI Native Corporation prior to any reclamation work beginning. 10) Surface ownership The surface owner of the land in the Kenai Beluga Unit is the CIRI Native Corporation. 11) Operator's Representative and Certification I hereby certify that I, or persons under my direct supervision, have inspected the proposed drill site and access route; that I am familiar with the conditions that currently exist; that the statements made in this plan are, to the best of my knowledge, true and correct; and that the work associated with operations proposed herein will be performed by Marathon Oil Company and its contractors and subcontractors in conformity with this plan and the terms and conditions under which it is approved. This statement is subject to the provisions of 18 U.S.C. 1001 for the filing of a false statement. Date: Name and Title: Vlfillard J. Tank, Advanced Senior Drilling Engineer Marathon Oil Company P.O. Box 3128 , Houston, TX 77253 (713) 296-3273 • • i7~Y,; CO ~~ 't ;`,\ i~ ~~ i k i o ., 1$ ~ ,, m :,`\ `` ~`~~~,, , ~~ ~', t :-I:v:.~ F r i ~%~ - 67 ~_ ,------I i ^ _,~ L--.^ K.U. 33-7 SECTION LINE ~ WELL K.B.U. 24-7X Z AS-STAKED WELL ~- LOCATION N ASP ZONE 4 NAD27 ~ N: 2356292.642 ' E: 275211.828 ' X LAT: 60°26'37.991 "N n' LONG: 151°14'40.970"W ~~ N FEL = 599' ''' FNL = 442' rL^~ ~ ELEV = 66.47~MSL) ~p~ m SECTIONy7~ / ~'~3/~ Y TOWNS P 4N RANGE 11W, SM AK .U. 24~7X 599' FEL PHA~E 1 EXPANSION AREA =9870 SF NOTES 1. BASIS OF COORDINATES IS U.S.C. & G.S. TRI STATION AUDRY IN A.S.P. , 20NE 4. (NAD 27) AVERAGE CONVERGENCE OF POINTS SHOWN: 01°5'58". 2. AUDRY LOCATION: LAT: 60°30'50.559"N LONG: 151 °16'37.445"W NORTHING = 2,382,045.42 FASTING = 269,868.75 3° ~> ' ` i ~` \ `' NORTH 7 ~ 8 W~ Z J Z _O I- U ~I i ~ / SCALE 0 60 120 FEET A D A ~ TO~ PROJECT REVISION: 1 l~,eur~in KENAI GAS FIELD PAD 41-18 WELL K.B.U. °A~ '~"~ ARATNON DII' ~MP~Y 24-7X AS-STAKED SURFACE LOCATION DRAWN BV: DME ~~ ~~ DIAGRAM SCALD '~-~" PROJECT NO. 063017 Consultin Inc. ENGINEERING/MAPPING /SURVEVINO/TESTING BOOK NO. 06-04 9 P.O. 807(466 SOIDOTNA, AIC 99669 LOCATION VOICE: (907)283-4216 FA7C (907)2633265 SHEET IVIcLane EMAIL: SAMCLANE®MCLANECG.COM S18 T4N R11 W SEWARD MERIDIAN, ALASKA 'I of 1 • • ' _ .. -- ~ s 1 ...,,,.~ ~p Psd 33-3t9 - . - _ w _ '~ ° ,~ ii~ii> ttt ~ " . ~t~CtliPy Las~~t ~ ` ~ _a ~'~ ! i +i . , _ ~ . ! Private.'~~6aad .~ ;~a~r~e, a ~ I -~.. _~~Pad 43-32 ~ , a p'~~ Pad 34w2~t ~,yscsweas ,,so~sg 15 a 1 .- ~ .. _. _. _ _. __ ; . ~'~~~~~` KEH1Ai GAS FfELD ~ w_ ~+ - (Feld-33l~t~ ~ ~ - .-~~ ,~o •r'i i 1~~i~i ~_Geswells ~~ ~I ~ ~ .E '~ _~ Pad 49-7 Pad 14-4 , ' ~ w.' ~ i.~M Project Location y: ~~ s{' p ; ~ ~ ~ ,it Prix t ~ 8 ~ ~ ~'~ ,._ ~ a e Road a . x ~ ~~ ~~ ~ _ ~ ~ Pad A7-9 r _ ~ ^ - _ - I ~: ~e~~G ! ~ - ...~ ; _ ~ r ' = - r 1 E~ ,Lake -- - + i a ~ ,~ ~~ COOiC INLET P~id~44~t8 ~ .~ti~°`e Ab$nda"ned -~~ - - ff!~ _ ~ G!s Wek ^ ~ - ~~ ~-• _ _ .i 4 __ - ?1 s s..' .~..' r .. _ '~ Hslifoneky Konai Unit Boundary .. ~(: -,~, ,~ f.~_{ ~ - .~. ~; k a4' ~. _. ; ,;• - - .lt -..~ if } E . "° ~ ~ ~ ~_ E ~ ~ ~ ~ 'j"•~ E z { ReJfectiuri °ti- a ~` ~ .. {: Lake 7' 3 a , ., ~- tCastiaf Rivsr . , :~ - ~~~ k y an '"~' .c v~ Source INap: USGS, 9969 Kenai, Alaska B-4, 9:63,880 E _ St:ALE ! 5336f1 y ~:, r~ ter, .. N- --'. -- ~---~~----- 1?~F.1 9fR~ -0a7 t~ ~U :sG65 +ttEtti :c¢s 7 i -. _ ~ _ _ ~ -. ... - . _ _-- Marathon Oil Coinpariy Kenai Gas Field c~nnps li;P .men um~iic Are8 Map • ~~ ~ '~~y~ ~ ~~~~ ~~~~~~ ~e~r~~l9p~~~r ~r~~~ =b ~C C] ~~~ ®~ i ralFRs,TH~~r~i Grl. ~-APae~~s~ Gp}YFIO~l~fT~.4#~ ~~~~ ~~~ ~oc~#ion /°" { yrlr+~ps a+~A'F`~ a Pa11 t„ ~_ GLACIER DRILLING RIG #1 MUD PITS AND PUMP ROOM LAYOUT ~-----~ CENTR>F13GF1 { 1 t11iQT I I 4' X 10' ~ ~ 1 I I 1 I ! 1 DeliP I I I ~' ~ 1 1 LM~~._J 11 ~ ------~ ~-------'j r 1 L~_J 4 ~ 1 I } I I f~ J j 1 ! i it I 1 I i ~ l i Ij t I 1 i ~ ' y l 1 + 1 1 h 1 1 I q I 1 »*~~ aur~~ I I ~ ~' x Iz• 7S IP 75 IP 75 HP 6X5 6X5 6X5 ~• 31~ 11• off[ s 75 IP 6X3 11' 5V 9L A-600 PT s~ A~TNI! -_-~ x i W j DITA 3{06 = I I 5V 9E el ( A-600 PT ~ I I ~~ I j D1TA 3106 I 1 1 1 1 I s~w L-=-~ M >w Igi Rf :7 ~~ ~~~~ ne (raalN - va4 m~-ie): o Kai 5 -800 4, 0.0 3.0 6.0 9.C 12.1 15. 12 2' 2 ~~ L a a6ao m O m U ~ 4200 m 3 H BWO 6600 7200 • MARATHON Oil Company Location: Cook Inlet, Alaska (Kenai Penninsula) Sbt: Slot #KBU24-7X Field: Kenai Gas Field Well: KBU24-7X Facility: Pad #41-18 tm uhorr~ KB 4-7X ~,~~~ *~_.. ~~~ i.D' Well profile Data D Commem MD ft ND (R La®I N fl Loral E (ft OLS °/IOOR VS R rie on a.o5 S.SOO zsz5ts 0.50 o.ao 0.55 S.aa o.a5 Eno at re nl 200.00 0.000 292.515 200.00 5.50 0.00 000 0.00 End of SUiltl 750435 38.130 292815 140529 1fifi.10 -39485 J.00 428.]6 Ene o4 Ten ent 3563.z] 39.130 292815 ]00242 fi69.94 1592.55 0.00 1727.73 End ofDmp g171.g7 0.056 292815 541].00 1W2.14 -2302.24 1.50 2584.45 EW Ot Tan enl 85289] 0.000 292815 Pfie DO 1002.14 -2]82.24 0.00 2554.45 Drop la sing -TD Vertical Section (ft) Azimuth 292.81 ° with reference 0.00 N, 0.00 E from wellhead • • Northing (ft) `~ n^i ^n v N Yn ~~N O ~ 0] In Y o ~ O ~~ U O~ zN a O~ m Y Z~ ~~ ~ m Q u. ^/ N N Il.i-~ c (~ UY G c -o o m m'~ U O J 0 MARATHON Planned Wellpath Report KBU24-7X Version#1 Page 1 of 6 ItATHON Oil Company k Inlet, Alaska (Kenai Penninsula) ai Gas Field #41-18 ~ojection System orth Reference ;ale 'ellbore last revised / TM Alaska State Plane, Zone 4 of __ Slot #KBU24-7X ell KBU24-7X ellbore KBU24-7X US feet Software System User _ Report Generated Database/Source file ®- BAK R Nu6NEs INTEQ ~~ fE ~-, e1lArchitectTM 1.2 ichwilg /23/06 at 15:23:43 A Anchorage/KBU24-7X.xm1 ., ~~ ocal coordinates ~ Grid coordinates Geographic coordinates North [feet] East [feet] Easting [US feet] Northing [US feet] I Latitude [°] Lon itude ° Slot Location -321.11 -646.07 275211.83 2356292.64 _ _ ~ 60 26 37.991N _ 151 14 40 970W Facility Reference Pt 275863.81 2356601.51 60 26 41.154N . 151 14 28.093W Field Reference Pt ~ 270993.19 2361975.05 60 27 33.151N 151 16 07.223W Calculation method Minimum curvature Rig on Slot #KBU24-7X (RT) to Facility Vertical Datum 87.47 feet Horizontal Reference Pt Slot Rig on Slot #KBU24-7X (RT) to mean sea level ~._`_. 87.47 feet Vertical Reference Pt Rig on Slot #KBU24-7X (RT) Facility Vertical Datum to Mud Line (Facility) -.-W-. _~,........~.._ 0.00 feet MD Reference Pt Rig on Slot #KBU24-7X (RT) Section Origin N 0.00,E 0.00 ft Field Vertical Reference mean sea level Section Azimuth 292.81° • MARATHON Planned Wellpath Report KBU24-7X Version#1 Page 2 of 6 BAKER NY6NES INTEQ - _.~u.-____ ~ -. .... perator N Oil Company Slot Slot #KBU24-7X Area Cook Inlet, Alaska (Kenai Penninsula) Well KBU24-7X Field Kenai Gas Field Wellbore KBU24-7X (Facility Pad #41-18 ~~ ~ W L+ LLYA'I'H llA'I'A (95 stations) ~- =interpolated/extrapo lated station - MD [feet] Course Length [feet] Inclination [°] Azimuth [°] TVD [feet] Vert Sect [feet] North [feet] East [feet] Grid East [us surve feet) Grid North f DLS ° Build Rate ° Turn Rate ath 0.00 0.00 0.000 292.815 0.00 0.00 0.00 0.00 ~ 275211.83 (us survey eet] _ 2356292.64 [ /100ft] 0 00 [ /100ft] 0 00 [°/100ft] 0 00 omment -~_ 100.001 100.00 0.000 0.000 100.00 0.00 0.00 0.00 275211.83 2356292.64 . 0.00 . 0.00 . 0.00 200.00 100.00 0.000 292.815 200.00 0.00 0.00 0.00 275211.83 2356292.64 0.00 0.00 0.00 KOP 300.001 ~ _.T - - 100.00 3.000 292.815 299.95 2.62 1.01 -2.41 275209.44 2356293 70 3 00 3 00 0 00 , ( 404A41 __ __ ~~, 104AOi ~__.-,-- ~ 6.000 -- - _ .292.$]5 -- _ .--_ 399:fi3 -T-._.,.. ~ 10.46' ~ _- ~1.OG -~b4 ~ - 275 20226 ~ _ . - --- -... ~,~ ~356296.88~ . _ _ ~ _3.00 ~v . - 1 3.00 ~ ~ ~ __ . ° ~ 0.0(} ~_- -~-- ~ 500.001 600.001 100.00 100.00 9.000 12.000 292.81 292.815 5 498.7 597.08 23.51 41.74 9.12 ~1-6.18 -21.67 -38.47 275 190.33 275173.67 ~ 2356302.17 2356309.55 3.00 3.00 ~ r 3.00 3.00 _ 0.00 . 0.00 _ 700.001 100.00 15.000 292.815 694.31 65.08 25.23 - 59 99 275152.33 2356319.00 3.00 3.00 0.00 ~~-~-®~' 80_0.001 _ -- _ 100.00 __ 18.0 00 292.815 7 90.18 93.48 36.25 - 86 16 ~ 275126.37 2356330.51 ._._ 3 00 _ 3 00 0 00 - _ ? ` ~. _~ _ _~ T ' - T ~ ~1 . . . 900.00 100.00: v 1.000 _-- 292.815 I ~884.4~ ~ ` 12ti.83. ~ •~- 49. 1~_ ~ -l 16 93 ~-- X75095.86 ~ --2356344A3 ~ - 300 ~ f - 3.00 --0 0 0 1 1000.001 100.00 24.000 292.815 976.81 165.12 ~ 64.02 -152.20 ~ 275060.88 2356359.53 _ _ ~ 3.00 ~ f _____ 3.OO _ , r ~~ 0.00 .- - ) 1100.001 100.00 27.000 292.815 1067.06 208.16 80.72 -191.88 275021.52 ~ 2356376.96 3.00 3.00 _ 0.00 ~~- 0 .. 01 100.00 2 92.815 1154.93 255.87 99.22 -235.85 274977.90 2356396.29 3.00 3.00 0.00 r ^ _ - _ ~ 33.000 __ r 292.815 _ T ___ 1240.18 --~._ - 308.12 ~~ 119.47 -T 284.01 274930.14 f^ T _ _. _ _. --- 2356417.45 3.00 3.00 O.OO r~~~~~ 001' ~ `---100.00 ~ 36.000 242.815 r -_ 132259, _ ~? _''~ 141 43 r X36_:21 ~, r~~ _ _a 274$78.36 -- -_--_--_ ____ _ ~ 235644(}.40 ~ _ _ ____--_ 3.00 [ - --- 3 0 (~~ 0 00 1500. 001 1504 35 100.00 4 35 39.000 39 130 292.81 292 815 5 1401.91 1405 29 425.62 428 36 165.04 16 -392.32 _ . ~ 274822.72 ~_ 2356465.05 3.00 _ _ ~ 3.00 _ ~ 0.00 _ _ w _e . . . . . . 6.10 -394.85 274820.21 2356466.16 3.00 3.00 0.00 EOB 1600.001 95.65 39.130 292.815 1479.49 488.72 189.51 -450.49 274765.02 2356490.62 0.00 0.00 0 00 ®~~ 1700.OOt 100.00 39.131 292.815 1557.06 551.83 213.98 -508.66 274707.33 2356516 18 0 00 0 00 . 0 00 -- -- _ _ _ ~ ~~ _ _ - - ~ ~ __ 39.13a,~ _ T. _ ~ _ 292 815 _ __ __ - 1634.63, ~14 44 ~f _ __ -- - __. 8.45 ', ~66.~ , ~ 5 2'?4b4963 ~ ~ _ . _ ~~ 5~,~] 75 ~ . 0 00 ~ . O OOF . ___. 0 00 _ __ - - _ _ ~_ __ _ ___ ~ _ , . . __...- ~ ~ . ` 1900.001 1 0.00 39.131 292.815 1712.20 678.05 ~ 262.92 ~ -625.00 ~ ~ 274591.94 2356567.31 0.00 ~ ` 0.000 ~ ~~ ~'-~ ~ 0.00 ~- --~=-- 2000.001 100.00 39.131 292.815 1789.77 741.16 287.39 -683.17 274534.24 2356592.88 _ _- 0.00 0.00 0.00+ ~ 2100.001 100.00 39.130 292.815 1867.34 804.27 311.86 -741.34 274476.54 2356618.44 0.00 0 00 0 00 ~~ 2200_001 100.00 39.130 292.815 1944.91 867.38 336.33 -799.52 7 2 4418.85 2356644 00 _ ~ 0 00 . 0 00 . 0 _ _ „ . _ _ ~ 7 - . . 00 2300.001 100.00 ~ 39.i31 ~ 292815 ~ '.4S ~ 93D.~q i ~ 3t~0.80 ` -857.~y 274361 1~ ~ 23~b669.57'' 0.00 _ ~ 0:00P 0:001 ---- • • MARATHON Planned Wellpath Report KBU24-7X Version#1 Page 3 of 6 ~- BAKER NV6NES INTEQ Iuperator MARATHON Oil Company Slot (Slot #KBU24-7X ___._ ~~'~ ~~~~~ Area - _ - Cook Inlet, Alaska (Kenai Penninsula) Well KBU24-7X ai Gas Field #41-18 ~Wr:LLYA'I'H llA'I'A (95 s tations) 1' =interpol ated/extra polated sta tion MD Course Length [feet] f t Inclination ° Azimuth ° TVD f Vert Sect North _ East Grid East Grid North DLS Build Rate Turn Rate Path [ ee ] 2400.00- 100.00 2500 00 00fi 100 [ ] 39.131 39 131 [ ] 292.815 292 815 [ eet) 2100.06 2177 63 [feet] 993.60 1056 70 [feet] 385.27 409 74 [feet) -915.86 974 03 [us survey feet] 274303.46 27424 [us survey feet] [°/100ft] 2356695.13 0.00 [°/100ft] 0.00 [°/100ft] 0.00 omment . . . . . . . - . 5.76 2356720.70 0.00 0.00 0.00 2600.00- 100.00 39.131 292.815 2255.20 1119.81 434.22 -1032.20 274188.06 2356746.26 0.00 0.00 0.00 2700.00 j- 100.00 39.130 292.815 2332 77 1182.92 458.69 1090.37 274130 37 2356771 83 0 00 0 00 0 00 ~-- - 2800.00_ _ ~' ]00.00 39.130 ! ---- 2_92.81.5 ~ 034 _._.~ _ ~.. --;'- ,~ 1246.t?3' '483I{~ I14fi;S4 ~ . _ - -- _~ ~ ~-274072.67 _ . ! ~ _ 2356797.39' .-0.40 J . 0.0 . ~J . -- 0.00 ~ _._ -___._. ~ 2900.00 j- 3000.OOj- 3100.OOj- 3200.001' 100.00 100.00 100.00 100.00 39.130 39.130 39.131 39.131 ~292.815 292.815 292.815 292.815 I 2487.91 2565.48 2643.05 2720.62 1309.14 1372.25 1435.36 1498.47 507.63 =1206.72 532.10 1264.89 556.57 -1323.06 581.04 1381 23 ~ 274014.98 273957.28 273899.58 27384 1.89 2356822.96 2356848.52 2356874.09 2356899 65 - ~~..=.__ 0.00 0.00 0.00 0 00 _ - - 0.00 0.00 0.00 0 00 _ .~. ~~~~-~ 0.00 0.00 0.00 0 00 - - _ - ~ ~- .-....d..~._.Y,_ ~ - ----~-~-- ,. _~-, _ . ---- -- . . . 3300.00~ ~ ^~ lOD.00 i _39.131 _ ~ ~~ 292.R15 ~~279$.20,~ 1'S615$~~ 6t-S.ti1 1439140 ' - , ~7378~4 1'9, ~ x_ _36925 ~2 O.Da, ~ - -_-_ l O.OD - . f D.OOI I ` ~ 3400.OOj~ i 100.00 39.130 292.815 2875.77 1624.68 _ ~ 629.98 ~ 1497.57 ~ 273726.50 2356950.78 _ 0.00 O.OO ~ ~. O.OO - ~ ~~_ I ~. 3500.OOj~ 100:00 39.130 292.815 2953.34 1687.79 654.45 -1555.74 273668.80 2356976.35 0.00 0.00 ~~ 0.00 3563.271• 63.27 39.130 ~ 292.815 3002.42 1727.72 669.94 -1592.55 - 273632.30 2356992.52 0.00 0.00 0.00 Begin Drop T -- - 3 _ ~ ~~ ______ _, - _ _ 3 ? 669.94 ?__4 - -_ i~ fi93 ~g __ __ _2.29 ~ ~ 2356992 52 - - 0.00 0 00 0.00 3600 00~~ I-- - --- 36.7 ----- ~ 38.580 ------- 292.815 _ ~ 3D 1.0 1750,?? I~ -- --:__- , ! . -- r __=_- X7361^ ~~ :73 ~ L~ µ 'I - - - _ 237001 85 ~ -- }- 1.50. - ~. 3700.OOj- 100.00 37.080 292.815 3110.00 J 1812.10 702.65 r -1670.32 273555.1 6 ~ 2357026.70 1.50 _ --1.50 - 0.00 3800.OOj- 100.00 35.580 292.815 3190.56 1871.34 725.62 -1724.93 273501.00 2357050.70 1.50 -1.50 0.00 3900.OOt 100.00 34.080 292.815 3272.64 1928.45 747.77 -1777.57 273448.79 2357073.83 1.50 -1.50 0.00 10_0.00 -^ - - 32 580 292.815 3356 19 1983.39 769.07 1828.22 273398.56 _ 235_70 9_6 09 -- _ 1.50 1 50 - 0.00 _ v 4100.D01-~ ] 00.00 ~ _ 31 080~ 292.815 _ ~ 3g41 15 ~D36.13 789.j? -l~,b.b3 273350:34" i ~ . ~ 235711'7 45j 1 50'~ _ -_- I 5DI _ _--_ ~ O OOi __ _ _ _ _. ~ ~ 4200.OOj- 100.00 - ~ . ~ 29.580 292.815 3527.46 ~ 2086.63 - 809.10 ~ -1923.37 _ __ _~ _ 273304.18 - - ~ 2357137.91 ___ _ 1.50 ~~_ -1.50 ~ , 0 00 ~>~_ ~_~ 4300.OOfi 100.00 28.080 292.815 3615.07 2134.85 827.80 -1967.82 273260.09 2357157.44 1.50 -1.50 . 0 00 4325.94 25.94 2 690 292.815 3638.00 2146.98 ~ 832 51 1979 00 ~ 273249.00 2357162.36 1.50 -1 50 . 0.00 Sterling 44 OO.OOfi - 74.06 0 292.815 jg0,76 3703.90 2I 845 60 2~ 010.14 273218.12 2357176 04 1 50 -150 0 00 ~~ ' -- r ~- ~ __ - - _._ _ . _ __ _._ ,~ . ._ --- .._ _.___ . ~4SOOT001 ~ _ _ 100.00.1, = _ 25A80 ~292.815~ 3793.91 ' ?_~~}.3-'..~ - Sb2.ti0 200.30___ 27; 178.29 G -- ?3571~r3 69 'k ~ - 1.50 _ _ x --IJ50,[ - _--- - -_____- ,_ O:OC)' _ _.--__- ______ I~ ~J MARATHON Planned Wellpath Report KBU24-7X Version#1 Page 4 of 6 BAKER NY61~iES INTEQ perator MARATHON Oil Company Slot Slot #KBU24-7X Area Cook Inlet, Alaska (Kenai Penninsula) Well KBU24-7X ~ - Field Kenai Gas Field Wellbore KBU24-7X Facility Pad #41-18 WELLPATH DATA (95 stations) ~• =interpolated/extrapolated station _ MD Course Length Inclination Azimuth TVD Vert Sect North East Grid East Grid North DLS Build Rate Turn Rate ath (feet) (feet] [°] [°] [feet] [feet) [feet] [feet] ]us surve feet) ~ f ° ° y (us survey eet] [ /100ft] [ /IOOft] [°/100ft] omment 4600.00fi 100.00 23.580 292.815 3885.03 2265.52 878.47 -2088.27 273140.63 2357210.38 0.00 ___ 4700.00- 100.00 22.080 292.815 3977.19 2304.32 893.52 -2124.03 273105,15 2357226.09 1.50 -1.50 0.00 4800.00- 100.00 20.580 292.815 4070.34 2340.69 907.62 -2157.56 273071.90 2357240.83 1.50 -1.50 0.00 4900.OOt 100.00 19.080 292.815 4164.41 2374.61 920.77 -2188.83 273040 89 2357254 57 1 50 1 50 _ ~ 500D.OQ-~ I - 1D0:00 I7:SR0 292 815 4259 33 ~4Qfs 06 ^_ -, _ 9~'~ 47 ~ _ ~ _____ ~ 7 ~1 . ~--~~____---_ - 273 ' . ~ - - _.___ . - . ' 0.00 ___. _^. , 5100.OOt ~ 5200.00- 100.00 00.00 16.080 4.580 ; . 292.815 292.815 . 4355.04 451.48 ~ , 2435.01 2461.45 _ 944.19 954.44 - 2 -2244.50 -2268.87 ~ D12 l_4 ~ 272985 67 272961.50 C ..357267.31 2357279.03 2357289.74 _ ~ _ 1_50, 1.50 1.50 _ __ 1.5~ -1.50 -1.50 ~_ _.,._D40 .000U~ 0.00 i - - ~' ~ ~~~ 5300.OOt 100.00 13.080 292.815 4548.58 2485.35 963.71 -2290.90 272939.65 2357299.43 1.50 -1 50 0 00 498 49' j ~ 1 _ - - - 4646. _ _~ 3~ 99 ' 0 272 _ 2357308.08 1_50 ~- . ~ -LSO ~_ . ~v~~~~ 0.00 : ~ 5 ~ 98.49 10.142 2~2.815 ~ 00' ` 25252 979. X32 .66 ,7~ L 803.19; 235715 58 ~ - L50' -1 ~ ( - _ _ _ T.- . I _ : T~ ~ ~'DO - [Beluga 5500.OOj ~ 1.51 10.08 0292.815 4744.49 2525.49 I 979.28 ~-2327.90 h 272902.95 2357315.69 1.50 I -1.50 _ -- I ~ V O OO _ I~ ~. 5600.00]- 100.00 8.580 292.815 4843.16 2541.70 985.56 -2342.84 _ 272888.13 2357322.25 1.50 ~ -1.50 . 0.00 ~~~--- 5700.OOt 100.00 7.080 292.815 4942.23 2555.33 990.85 -2355.40 ~ 272875.68 2357327.77 1.50 -1.50 0.00 ~- 5800.OOt ~ - 100.00 -, 5 580 292.815 5041.62 2566.35 995.12 2365.56 272865.60. 2357332.24 1.50 1.50+ 0 00 ~~~~ 6._~~• ~`~ 00 . ~- --_.__:.~~ 00 -- --- 0 ~- 2 ~ -- = {l ,i7, ~~ ~.-.~' _ -- - ~72857.90~ i1 _ ~ - 1.54 ~ _ 1 5 0 ~ - . 0 00 ~- 6000. j- 6100 00- 1 0. 100 00 2.5 80 1 080 292.815 292 815 5241.09 5341 03 2580.58 1000 64 r 2378.68 I ..__ - 2583 272852.59 ~ 2357338.00 ___-_°- ~ 1.50 - .~ ._~. 1.50 ~ ~_: _ 0.00 r .°~_ ..___.-w..-. . . . . . .77 1001.87 2381.62 272849.67 2357339.29 1.50 -1.50 0.00 6171.97- 71.97 0.000 292.815 5413.00 2584.45 1002.14 -2382.24 272849.05 2357339.57 1.50 -1.50 O OO EOD 0 .000 292.815 5413.00 2584.45 1002.14 2382.24 272849.05 2357339 57 1 50 1 50 . 0 6200.00 ~ f .__ ~~. 6300 OO - ~~-- 28.0 _~ ~ 100 00 0 ~:._ _000 ` 0.040 ~5441.D31., _ 2584_:45 _ __ „~ - r -_1002.14 u _~..,.__ y3S2.,-~ T _ ; ~ T _272849:05 ~ _ __ . _._ 23573.9.57 i _ _ _ _4,00 ~ - __ _ _ _. D.00~ - .00 0 4D; ._ _ __ .._ ~ ~ . j 6400.OOt . ~-- 100.00 0.000 0.000 0.000 0.000 5541.03 5641.03 2584.45 2584.45 1002.14 ~ -2382.24 1002.14 -2382.24 ~ 272849.OS 272849.05 ~ 2357339.57 ~ 2357339.57 0.00 0.00 O.OOI 0 00 __ ~ 0.00 0 00 ~.~~ .F 6500.OOt 6600.00- 100.00 100 00 __ 0.000 _ 0.000 0.000 0.000 5741.03 .03 5841 2584.45 2584.45 1002.14 -2382.24 1002.14 -2382 24 272849.OS 272849.05 2357339.57 2357339 57 ~ 0.00 0 00 ~ ~ . 0.00 . 0.00 0 ~~6700.00'~ ~~ ~ 14040 ~ ~~_~r:-_ -_ _~.~ .. _. -0.040 ,,~- ~~ ~ ___ _ 0.004 _ 5941'A3 ; _ r _ ~" ~ '~ ~ ~ '~~'? c ~h4.45 f 00...14 38 ~ , r_84 ~ 05 j . r 2357339.57 . _ _ l Oi40 ___ _-___._ D 0(1 I .00 _ _ D 041 _ _ - -- -.. . __.~...~.__._ _._ „~. ~..,~_~.~:- , ` _ . _ _ _ • MARATHON Planned Wellpath Report KBU24-7X Version#1 Page 5 of 6 BAKER ~'IYGr1~lES INTEQ perator N Oil Company Slot Slot #KBU24-7X Area Cook Inlet, Alaska (Kenai Penninsula) Well KBU24-7X Field Kenai Gas Field Wellbore KBU24-7X Facility Pad #41-IS ~-~~~ ~WELLPA MD [feet] 6800.00]' 6871.97 fi 6900.00 j- TH DATA (95 Course Length [feet] 100.00 71.97 28.03 stations) Inclination [°] 0.000 0.000 0.000 ~ = interp Azimuth [°] 0.000 292.815 0.000 olated/extr TVD [feet] 6041.03 6113.00 6141.03 apolated s Vert Sect [feet] 2584.45 2584.45 2584.45 2584.45 tation North [feet] 1002.14 1002.14 1002.14 1002.14 East [feet] -2382.24 -2382.24 -2382.24 -2382.24 Grid East [us survey feet] 272849.05 272849.05 272849.05 272849.05 Grid North [us survey feet) 2357339.57 2357339.57 2357339.57 2357339 57 DLS [°/100ft] 0.00 0.00 0.00 0 00 Build Rate [°/100ft] 0.00 0.00 0.00 0 00 Turn Rate [°/IOOft] 0.00 0.00 0.00 0 00 ath omment Lower Beluga _ _ 7100.00 _ ~~ 00.00 ~ 0.000 0.000 . 6341.03 - '' 2584.45 - _ ~E)02 14 ~ _123R_~4 t 272843. ~ ~ . _~ ____ ~ ~I . ~- - - . 7 -- - - . i ~7200.OOj- 7300.OOt 7400.OOt ~ 100.00 100.00 100.00 0.000 0.000 0.000 0.000 0.000 0.000 6441.03 6541.03 6641.03 2584.45 2584.45 2584.45 1002.14 1002.14 1002.14 2382.24 -2382.24 2382.24 _ 272849.05 272849.05 272849.05 _ _ 2357339.57 2357339.57 2357339.57 ~ 0.00 0.00 0.00 0.00 0.00 O.OO 0.00 I -r 7500.00 j' 100.00 0.000 0.000 6 741 03 2584.45 1002.14 2382.24 272849.05 2357 339 57 0 00 0 00 0 0 0 ~~~~~~~ 7 OO.OOtI 100.00: 0 O.OOO _ j 0 000 _ 684103" _ 2584:45 ~ 5 (QO'2 I4 ~ _ ?3R2 ~ i _ ~~ g; i 84 QS . . . - - _ . _ _ , 7700.00~-~ ., .:_ : 100.00 ~ 0.000 . 0.000 _ 6941.03 - - 2584.45 . _=---- 1002.14 . ~ __~ _. -2382.24 _ -_-- 272849.05 ~ _ - 339 57 _ 2357 2357339.57 ~ .0 OU ~ 0.00 [_ 0.00 ~ 0.00 [ O.OD - ~ 0.00 f - ~ - - ~. ~~ W' 7800.00- 100.00 0.000 0.000 7041.03 2584.45 1002.14 -2382.24 272849.05 2357339.57 0.00 0.00 0.00 -i~-- 7900.00f 100.00 0.000 0.000 7141.03 2584.45 1002.14 -2382.24 272849.05 2357339.57 0.00 0.00 0.00 - 8000.OOt --- r 100.0 0.000 ^ _0.000 ~ 7241 :03 --- _. - -, 2584.45 ~- --- 1002.14 , - 2382.24 - 272849.05 2357339 57 ~ 0.00 0.00 0.00 ~_ 8100.40~~ _ " ._ _ . 100_OO,I ~ _ 0^000 _ D:OOD~ ^734Y;03 _ X584;45 [ : ^ lOQ1 14 ~ :; ~ __ X2382.24 ! ~ ~ __.__ , - .,7~849:05~ --------- ---- 2357339 57 __ D 00' ~ ~ _ I OAq 0.00E ._. ~ - ' 8200.OOt+ 8300.00]' 100.00 100.00 0.000 0.000 0.000 0.000 7441.03 7541.03 2584.45 2584.45 1002.14 1002.14 -2382.24 -2382.24 -- 272849.05 272849.05 ____. 2357339.57 ~ 2357339.57 . ~.~ __ 0.00 0.00 _-~ ._ 0.001 0.00 _ -_ .___~ ~ 0.00 0.00 .. - __ ,~ .~.._W_.~ ~~ 8400.00- C 100.00 0.000 0.000 7641.03 2584.45 1002.14 -2382.24 272849.05 2357339.57 0.00 0.00 0.00 8500.00- I 100.00 0.000 0.000 7741.03 258_4.45_ 1002 14 -2382.24 _272849.05 - 2357339.57 0 00 0.00 0.00 ^` 8 5~6 97 '~ 26.97Ti 0 ODO~ 292 815; ^, 7768 00 -~ ~ 2584.45 ~ (00? 1~~ -'~ 3F2.24 _ 2728.39.0; ; _ ~ ^ T_ ~ -- ~~5733a.5? i _~ 0001 . 0.001 O.OQ~ Tyonek - TTY HOLE & CASING SECTIONS Ref We llbore: KBU24 -7X Ref W ellpathc KBU24-7X Version#1 String/Diameter Start MD End MD Interval Start TVD End TVD Start N/S Start E/W End N/S End E/W [feet] [feet) [feet] [feet] [feet] [feet] [feet] [feet] [feet] 13.375in Casing Surface 0.00- 1600.00 1600.00 0.00 1479.49 0.00 0.00 189.51 ~ 450 49 9.625in Casing Intermediate 0.00 6147.00 6147.00 0.00 5388.03 0.00 0.00 1002.11 _ . ; -2382 17 3.Sin Casing Production 0.00 8526.96 8526.96 0.00 7767:99 0.00 0.00 1002.14 . -2382.24 • • .Planned Wellpath Report KBU24-7X Version#1 MARATHON Page 6 of 6 ItATHON Oil Company Slot (Slot #KBU24-7X k Inlet, Alaska (Kenai Penninsula) Well KBU24-7X ai Gas Field Wellbore KBU24-7X #41-18 BAKER NY6NES INTEQ (TARGETS Name MD TVD North East Grid East Grid North Latitude Longitude Shape [feet] [feet] _ [feet] [feet] _.. [vs survey feet] (us survey feet] [°] [°] KBU24-7X Middle Beluga Tgt 5413.00 941.33 -2447.16 272783.00 2357280.00 60 26 47.259N 151 15 29.749W circle -. KBU24-7X TD Tgt 7768.00 941.33 -2447.16 272783.00 2357280.00 60 26 47.259N 151 15 29.749W circle SURVEY PROGRAM Ref Wellbore: KBU24-7X Ref Wellpath: KBU24-7X Version#1 Start MD End MD Positional Uncertainty Model Log Name/Comment Wellbore [feet] [feet] 0.00 8526.97 aviTrak (Standard) U24-7X • r ~ U Wellpath Design Summary Report Wellpath: KBU24-7X Version#1 Page 1 of 3 ~t Slot #KBU24-7X ell KBU24-7X ellbore KBU24-7X BAKER I~IYt~-NES INTEQ A±~_. ro~ection ystem NAD27 / TM Alaska State Plane, Zone 4 (5004), US feet Software System We1lArchitectTM 1.2 North Reference True User Michwilg Scale 0.999958 Report Generated 08/23/06 at 15:28:05 Wellbore last revised 08/23/06 Database/Source file WA_Anchorage/KBU24-7X.xml Location lity Reference Pt l Reference Pt Local coordinates North [feet] East [feet] -321.11 ~~~~ -646.07 Grid coordinates Easting (US feet] Northing [US feet] 275211.83 2356292.64 275863.81 2356601.51 270993.19 2361975.05 Geographic coordinates Latitude [°] ~~ Longitude (°] 60 26 37.991N 151 14 40.970W 60 26 41.154N ~~~~ 151 14_28.093W 60 27 33.151N ~ 151 16 07.223W • P - - Calculation method Minimum curvature Rig on Slot #KBU24-7X (RT) to Facility Vertical Datum 87.47 feet Horizontal Reference Pt Slot Rig on Slot #KBU24-7X (RT) to mean sea level 87.47 feet Vertical Reference Pt Rig on Slot #KBU24-7X (RT) Facility Vertical Datum to Mud Line (Facility) 0.00 feet • MD Reference Pt Rig on Slot #KBU24-7X (RT) Field Vertical Reference mean sea level r - f~ - - MARATHON Wellpath Design Summary Report Wellpath: KBU24-7X Version#1 Page 2 of 3 BAKER NuaNEs INTEQ ~.,~:~. perator THON Oil Company _ Slot Slot #KBU24-7X Area Cook Inlet, Alaska (Kenai Penninsula) Weil _ KBU24-7X Field Kenai Gas Field Wellbore .KBU24-7X Facility Pad #41-18 WELLPATH DA TA (6 stations) _ ~ - - - - _ MD [feet] __ ~- 0.00 Inclination (°] ~ 0.000 Azimuth _ [°] 292.81 TVD ~eet] 5- 0.00 Vert Sect North [feet ] [feet] 0.00 0.00 East DLS (feet] [°/IOOft] 0.00 0.00 Design Comments Tie On 200.00 0.000 292.815 200.00 0.00 ~ 0.00 0.00 0.00. End of Tangent 1504.35 39.130 292.815 1405.29 428.36 166.10 -394.85 3.00 End of Build 1727 73 669.94 1592.55 O OO End of Tan en __ .6171.97 - ~ ! ~_ - 0.000 - . T _ _. _,. 292.815 -. T.-- S4i3,00, m-T _3154 4'h1;; 1U0?_i4 ~ ' ''' - _ _ . ~ ' ~ -23R~.24 ~ 1 50 { _ g t End of Dro - 8526.97 0.000 292.8 15 7768.00 - 2584.45 ~ 1002.14 _ _ ~ - ~ -2382.24 ~ 0.00 - -_- __--- p _ - ~ End of Tangent ~ HOLE & CASING SECTIONS Ref Wel lbore: KBU24 -7X Ref Wellpath: KBU24-7X Version#1 String/Diameter Start MD End MD Interval Start TVD End TVD Start N/S Start E/W End N/S End E/W [feet] [feet] [feet] [feet] ~y [feet] [feet] [feet] [feet] [feet] 13.375in Casing Surface ~ 0.00 1600.00 1600.OO ~ 0.00 1479.49 0.00 0.00 189.51 -450.49 9.625in Casing Intermediate 0.00 6147.00 6147.00 0.00 5388.03 0.00 0.00 1002.11 -2382.17 3.Sin Casing Production 0.00 8526.96 8526.96 0.00 7767.99. 0.00 0.00 1002.14 -2382.24 • (TARGETS Name MD [feet] TVD (feet] North [feet] East [feet] Grid East [us survey feet] Grid North [us survey feet] Latitude [°] Longitude ' Shape [°] • KBU24-7X Middle Beluga Tgt 5413.00 941.33 -2447.16 272783.00 2357280.00. 60 26 47.259N 151 15 29.749W circle KBU24-7X TD Tgt ~- 7768.00 941.33 -2447.16 272783.00 2357280.00 60 26 47.259N 151 15 29 749W circle MARATHON Wellpath Design Summary Report Wellpath: KBU24-7X Version#1 Page 3 of 3 BAK R NuaNEs INTEO A ® _ _ _ - Operator s ~«'R'~r`~, ®d_........._. - .., ___..._-_.___ a ._~. - __ _ _ n ts~~-~: MARATHON Oil Company Slot Slot #KBU24-7X Area Cook Inlet, Alaska (Kenai Penninsula) ~ Well U24-7X Field Kenai Gas Field Wellbore KBU24-7X Facility Pad #41-18 SURVEY PROGRAM Ref Wellbore: KBU24-7X Ref Wellpath: KBU24-7X Version#1 Start MD End MD Positional Uncertainty Model Log Name/Comment Wellbore [feet] _~ [feet] ~~- r~ 0.00 8526.97 aviTrak (Standard) U24-7X • YA ~~ m~ ~ N /~~ 0] ~ r \~ ~ N N Q _ ~ ~ ~ m m f4YY p ~ Ui O ~~ o N U O z .~ a o .` 2 _`° Y ~ N Q li N cN0 cC9~ Q Y f0 5 gYa G ~~.. o m '= ~ LL U U ~ O lL J a ~. ~sF p~~,,,~ueJs Vim' QC ,~e~ Gb`b 1 ~~/d 8 ~~ e~ ~gf °o e~i ~ e/ppW 1 ~l k~~ ~~=n s ~g ,~ ~~ S Northing (ft) • ~~ ~ilA1tATH~I~ MARATHON Oil Company Location: Cook Inlet, Alaska (Kenai Penninsula) Slot: Slot#KBU24-7X Field' Kenai Gas Field Well: KBU24-7X ~x wn a ~sooa~, vs m~ ~x cR,ib eeme bw~iUe iFaeiy - Pea xie~ne~~o ~~. ~ Traveling Cylinder: Map North Boa ~,T ~~ ~~\ Clearance Report Closest Approach IY1ItRl1THON KBU24-7X Version#1 Page 1 of 19 ~~, _,~a. 4, ~ ~.. Operator ~MARATHON~OilCompany ~~ ell rro~ection System INAD27 / TM Alaska State Plane, Zone 4 (5004), US feet North Reference rue Scale 0.999958 Wellbore last revised 8/23/2006 #KBU24-7X r24-7X r2a-7x ~ftware System ser eport Generated atabase/Source file ~~ BAKER MVGl~IES INTEQ . lteCtTM 1.2 at 4:48:48 PM forage/KBU24-7X.xm1 Local coordinates Grid coordinates Geographic coordinates Slot Location North [feet] -321.11 East [feet] -646.07 Easting [US feet] 275211.83 Northing [US feet] 2356292.64 Latitude [°] Longitude.[°] 60 26 37.991N 151 14 40.970W ''Facility Reference Pt ~~ 275863.81 r 2356601.51 60 26 41.154N 151 14 28.093W i Y Field Reference Pt 270993.19 2361975.05 ! 60 27 33.151N 151 16 07.223W POSITIONAL UNCERTAINTY CALCULATION SETTINGS Ellipse Confidence Limit 3.00 Std Dev Ellipse Start Depth 0.00 feet Surface Position Uncertainty included Declination 19.69° East of TN Dip Angle 73.32° Magnetic Field Strength 55384 nT • ~aQaTHaM Clearance Report Closest Approach KBU24-7X Version#1 Page 2 of 19 ANTI-COLLISION RULE BAKER Mt1GNES INTEQ Rule Name E-type Closest Approach w/Hole&Csg Limit:0 StdDev:3.00 Rule Based On Ellipsoid Separation # w/Surface Uncert Plane of Rule Closest Approach Threshold Value ; 0.00 feet Subtract Casing & Hole Size yes Apply Cone of Safety no HOLE & CASING SECTIONS Ref Well bore: KB U24-7X Ref Wellpath: KBU24-7X Version#1 String/Diameter Start MD [feet] End MD [feet] Interval [feet] Start TVD [feet] End TVD [feet] Start N/S [feet] Start E/W (feet] End N/S [feet] End E/W [feet] 13.375in Casing Surface 0.00 1600.00 1600.00 0.00 1479.49 0.00 0.00 189.51 -450.49 9.625in Casing Intermediate 0.00 6147.00 6147.00. 0.00 5388.03 0.00 0.00 1002.11 -2382.17 3.Sin Casing Production 0.00 8526.96 8526.96 0.00 7767.99 0.00 0.00 1002.14 -2382.24 SURVEY PROGRAM Ref Wellbore: KBU24-7X Ref Wellpath: KBU24-7X Version#1 Start MD End MD [feet] ~ [feet] Positional Uncertainty Model Log Name/Comment Wellbore 0 00 8526.97 aviTrak (Standard) U24-7X • • CALCULATION RANGE & CUTOFF - From: 0.00 MD To: 8526.97 MD C-C Cutoff: (none) OFFSET WELL CLEARANCE SUMMARY (4 Offset Wellpaths selected) Offset Offset Offset Offset Offset Ref Min C-C Diverging Ref MD of Min C-C Min C-C ACR Facility Slot Well Wellbore Wellpath MD Clear Dist from MD ,Min C-C E[I Sep Eil Sep Status [feet] [feet] [feet] Ell Sep [feet] Dvrg from Pad #41-18 slot #KBU33-7 KBU33-7 KBU33-7 MSS<0-7910> 1116.81 242.40 1116.81 1193.48 217.09 1193.48 PASS Pad #41-18 slot #KU24-7 KU24-7 KU24-7 GMS <0-5820'> 472.81 317.34 4600.00 4687.23 284.33 4687.23 PASS Pad #41-18 slot #KU24-7 KU24-7 KU24-71tD MWD <3777-4800> 4766.02 233.94 4766.02 4766.23 109.61 ~ 4~ 766.23 PASS Pad 41-7 Slot #KBU43-7X KBU43-7X KBU43-7X MWD <0-8610> 8190.81 1975.96 8192.50 8190.81 1625.13 8190.81 PASS C ~taRa~rHON Clearance Report Closest Approach KBU24-7X Version#1 Page 4 of 19 BAKER NVGHES INTEQ Operator MARATHON Oil Company SlotSlot #KBU24-7X ~ ,' Area ',Cook Inlet, Alaska (Kenai Penninsula) Well KBU24-7X Field Kenai Gas Field Wellbore KBU24-7X Facility Pad #41-18 CLEARANCE DATA -Offset Wellbore: KBU33-7 Offset Wellpath: MSS<0-7910> Facility: Pad #41-18 Slot: slot #KBU33-7 Well: KBU33-7 Threshold Value=0.00 feet ~ =interpolated/extrapolated station Ref MD Ref Ref Ref Offset Offset Offset Offset Horiz C-C Clear Dist Ellipse ACR MASD [feet] TVD North East MD TVD North East Bearing [feet] Sep [feet] [feet) [feet) [feet) ffeetl ffeetl 1fPPt1 1fPP*~ fol re,...ai ACR Status 0.00 0.00 0.00 0.00 2.53 0.00 -238.12 -128.36 208.33 270.51 257.40 13 12 PASS 100.001 100.00 0.00 0.00 102.53 100.00 -238.12 -128.36 208.33 270.51 257.31 . 13.20 , PASS 200.00 200.00 0.00 0.00 202.53 200.00 -238.12 -128.36 208.33 270.51 257.10 13.41 PASS 300.001 299.95 1.01 -2.41 302.48 299.95 -238.12 -128.36 207.77 270.27 256.37 . 13.90 PASS '.?10000 :`~ 399.63 4.0_ ~ _-,9,6~A =40~.1~ ~ 399.t`3~ i __ :__-_238 12' [ _. 12536 - == -ZOd ld :` _:_ _ 269.71 , = 35~tf2 = I4 ~~?SS= 500.001 498.77 9.12 -21.67 501.45 498.92 -238.12 128.36 - . 203.34 _ __ 269.27 254.46 .~ 14.81 PASS 600.001 597.08 16.18 .. -38.47 611.49 608.86 -235.22 -129.13 199.8 3- 267.51 251.81 15.70 PASS 700.001 694.31 25.23 -59.99 , 723.44 720.41 -225.81 -131.77 195.96 262.41 245.55 16.86 . PASS 800.001 790.18 36.25 ] -86.16 ] 825.94 822.02 -213.14 -136.34 191.38 256.37 238.08 18.28 PASS _900.b0 i _ 884.43] `_ 4.19 -116:93 X36.10 ; 930° k =1~1 e~ 14~ TSC 20 r - 4 ( = ' 1000.001 976.81 ~ 64.02 -152.20 ; 1033.94 --, --- 1026.11 -175.68 ~~ 4 150.23 L ~ 179.53 9 { . °; _ - _.~ ~ 244.73 _. ~ 222.56 __2~ ~ 22.17 5~1 ~ PASS 1100.001 1067.06 80.72 -191.88 1141.54 1130.21 -151.60 -162.63 172.82 242.52 218.14 24.37 PASS 1116.811 1082.00 83.70 -198.97 1157.00 1145.06 -147.84 -164.75 171.59 242.40 217.67 24.73 PASS 1193.481 7' 1149.28 97.96 -232.86 1238 13 1222.61 -127.39 -176.95 166.07 243.48 217.09 26.40 PASS 1,. (111~CpQ, : 1~k~3~ 9~_~ 2~3 F24~ I~ ~ ~ ~2Z9:2 F 12~49 ~ = ~ ~ ;' ~ -_3~G ~ 5'8 E ~ 3 ~3 _` ~f_T j. ~ 1*S 1300.001 1240.18 119.47, 0 1353.51 _ 1331.07 . . -92.53 . 195.14 , 157.26 _ 247.19 _ _ ~ 218.76 28.43 _~ PASS 1400.001 1322.59 141.43 -336.21 1459.31 1428.42 -56.19 -214.88 148.4 5--254.91 224.99 29.92 PASS 1500.001 1401.91 165.04 -392.32 1568.17 1525.96 -14.34 -239.03 139.48 266.58 235.77 30 80 PASS 1504.35 r ~00 b0~ 1405.29 ~_14 949 166.1Oj 1$x 51 T394.85j 45f1 49 1572.89 1530.11 1 -12.40 ~ - -240.13 ~ 139.08 x----267.17 236.34 . 30.84 PASS ` . - _ , lti~5.7{]k ~ _ T~i 9.2$ ~ 3_215 ~ ___.13~ 3~ R€~. _' ~~_ ~1~7 P; 1700.001 1557.06 213.98 -508.66. 1775.30 1703.41 77.48 -293.34 122.37 293.96 261.91 ~ 32.05 _ PASS 1800.001 1634.63 238.451 -566.83 1867.83 1781.66 119.35 -319.50 115.71 311.41 278.11. 33 30 PASS 1900.001 1712.20 262.92 -625.00 1962.74 1861.61 162.79 -346.64 109.78 331.42 296 44 . 34 98 PASS 2000 001 1789.77 287.39 -683.17 2051.481 ~ 1936.43 203 41 -371.52 105.08 354.52 . 317.40 . 37.131 PASS ~:QO UQ~ ~8~5~.3~b " 311.86 -741:34 + _ ~139 .b1 ~ :_2011.19. __' 243 5~ ~° -395,38 ' '.141.17 '380 9s ~4 I. (6' x 39 7q =,I' SA 2200.001 1944.91 336.33 -799.52 2229.68 2088.01 284.29 418.81 _ __ ~ 97.79 ~ ~ 410.03 _ _ 367.24 ___ ~~ 42.78 _. ASS 2300.001 2022.48 360.80 -857.69 2320.96 2166.15 325.17 -442.41 94.90 440.86 394.83 46.03 PASS 2400.001 2100.06 385.27, , -9 851 851 6~ 2412.96 2244.99 366.24 -466.12 92.42 472.89 423.40 49.49 PASS 2500.001 2177.63 409. 74 -974.03] 2504.75 2323.73 407.09 -489.74 90.31 505.89 452.83 53.06 PASS 26000Ui' _ 22$5,2Q!k . _ 434.22 103?.20 -2546801 2402.78 - 44743_ f ~j3.29 - $$ 49) 539 fk7~ 482 91'. 56 76" PASS G _, _ - __, - _ - , . . .. . • • Clearance Report Closest Approach MARATHON KBU24-7X Version#1 Page 5 of 19 field Kenai Gas Field acility Pad #41-18 7X CLEARANCE DATA -Offset Wellbore: KBU33-7 Offset Wellpath: MSS<0-7910> Facility: Pad #41-18 Slot: slot #KBU33-7 Well: KBU33-7 Threshold Value=0.00 feet ~~ BAKER N1IGNES INTEQ t =interpolated/extrapolated station Ref MD Ref Ref Ref Offset Offset Offset Offset Horiz C-C Clear Dist Ellipse [feet] TVD North East MD TVD North East Bearing [feet] Sep [feet] [feet] (feet] [feet] [feet] [feet] [fe t ACR MASD ACR [feet] Status 2700.00- 2800.OOj~ 2332.77 2410 34 458.69 483 16 -1090.37 -1148 54 2688.92 2779 2481.92 488.78 e 1 -536.87 [ 1 86.89 574.03 [feet] 513.50 60.54 PASS 2900.OOfi . 2487 91 . 507 63 . -1206 72 .05 2870 2559.54 528.43 -559.76 85.60 609.08 544.83 64.25 PASS 3000.OOj~ . 2565 48 . 532 10 . -1264 89 .23 2962 2638.36 568.12 -582.68 84.46 644.76 576.77 68.00 PASS 3100 OOt . ' 43 . ~ 7 ' . .06 2717.87 607.92 -605.65 83.4 4 680.85 609.08 71.77 PASS . • 2fi .05 ~ 556.5 -1 323 06 r =3054.33~ '~ __ 2797.82 ;_ _647.89 =~28: T3 P . ',"g2 5 I -®- J~ : 717 f G4I b ` I ' 3200.OOf 2720 62 581 04 -1381 23 3145 _ __ ~ . _ _ . ~ 1 _ 75. tASS 3300.OOf . ~ 2798 20 . 605 51 . -1439 40 .85 3237 14 2877.10 687.40 -651.54 81.71 753.82 674.46 79.36 PASS ] 3400.00 . 2875 77 . 629 98 . -1497 57 . 3 2956.35 726.65 -674.20 81.0 0 790.71 707.59 83.12 PASS 3500.OOj~ . ~ 2953 34 . 654 45 . -1555 74 329.30 3422 02 3036.46 766.10 696.98 80.35 827.83 740.93 86.90 PASS ~Sti3 27 . 3002 . 9 . 3117.04 805 86 719.93 79.73 865.05 774.33 90.72 PASS . , 3600.OOi = ,42 3 30 1 02 66 :94 678 87 -IS92.SS -1613 79 t _34821(b 3517 (-= 31~3.~3 j ' Z~i~175 . (_.. 7`3488 1 _ :__~9~ -_ °'S$8,5 - _. 795«~l _~_-_°93.23 [I'A.~ 3700.OOf , 3110 00 . 702 65 . -1670 32 .04 3611 9 3199.35 846.92 743.64 79.0 7 902.07 807.41 94.67 PASS 3800.OOj~ . ~ 3190 56 . 725 62 . -1724 93 . 3 3706 3281.23 888.46 -767.62 78.37 937.39 838.69 98.70 PASS ! 3900 00~ . 3272 64 . 747 77 . -1777 57 .52 3800 6 3362.61 930.24 -791.74 77.63 970.72 867.92 102.80 PASS _ . t 3 . } . . 7 3443.52 971.96 -815.83 76.88 1002.20 895.27 106.94 PASS _ ~ 4100 OOj~ ~_. _ ~ . 3441 15 ,r .?69:( 7 789 52 -1;32$:22 1876 8 _ :38944~ ~ ::_ 3~24.06~ ,1013.E .x=.$39:79 y _: ~",~ ~{I31 94~~ 0 I~ _9 651$2 ' _I11.f18~ 'F ^ . 4200.OOf . 3527 46 . 809 10 - . 3 -1923 37 3988.83 4086 3605.2 4 1055.21 -863.89 75.3 1059.98 944.72 115.26 PASS ~ 4300.OOj~ . 3615 07 . 827 80 . -1967 82 .80 4186 70 3689.50 1098.46 -888.96 74.37 1086.27 966.66 119.62 PA 4400 00 f . 3703 90 . 845 60 . 2010 14 . 428 3775.54 1142.07 -914.93 73.38 1110.45 986.40 124.04 PASS 14500 00~; . _ "793.91 . 8(12:50 _. 2050 0 1.26 4 _ 3857 12 = 1183 06 ~ 939.56 72 SO 1132 91 1004.67 128.24 PASS _ . .~ ~ 383.69 3945 63 ;,1227 01~ J 966.1 1 ~' ; tt33 S ~ t32 IQ20 ° 4600.00 f ~ 4700.OOj-~ 3885.03 3977 19 878.47 893 52 -2088.27 -2124 03 4477.63 4545 43 4026.90 1267.05 ._ -991.35 70.49 :- : _ . ~ y 1172.33 ._ . 1035.42 ~_ ~1~2'~S~ 136.91 RAS'; PASS 4800.00 4900.00 . 4070.34 4164 41 . 907.62 920 77 . -2157.56 -2188 83 . 4604.15 4685 4085.80 4137.10 1295.98 1321.36 -1008.37 -1021.51 70.16 69.99 1191.00 1210.89 1051.07 1068.45 139.93 142.43 PASS PASS I~tT~I OQ . r 2S9 3 . . .11 4208.17 1356.54 -1037.83 69.26 1231.50 1085.68 145.82 PASS ~ . 5100.OOj~ ~~ 4 3 4355 04 932:97 944 19 -2217.81 -2244 50 4779.411 4873 42~1.1~ 139734 `~lOS6>~42;. ___; >_68.2_1~ -----_ 12SI.i9 II~Ic42 _ ` 149.78` PAS'~~ 5200.001 . 4451 48 . 954 44 . -2268 87 .67 4967 4374.19 1437.88 -1074.90 67.12) 1269.6 7 1115.99 153.69 PASS' 5300.001 5400.OOj~ . 4548.58 4646 27 . 963.71 971 99 . -2290.90 -2310 58 .30 5061.70 5157 7 4456.76 4539.97 1478.05 1518.65 -1093.19 -1111.64 65.99 64.80 1287.02 1303.34 1129.49 1141.97 157.53 161.38 PASS ~ PASS 5500.00~~ . 4744 49 . 979 28 . 2321. 0 . 7 52 4624.58 1560.02 -1130.59 63.51 1318.58 1153.31 165.27 PASS . _ . ' 9 _ _ _ 5414+ 47©9.3&_ ~ _ 1601.52 _._"I14985~ - 62.16; : 1332 7(~ 1163 63 _ 169 13! PASS', • • rield Kenai Gas Field ~Wellbore ~KBU24-7X Facility ;Pad #41-18 t CLEARANCE DATA -Offset Wellbore: KBU33-7 Offset Wellpath: MSS<0-7910> Facility: Pad #41-18 Slot: slot #KBU33-7 Well: KBU33-7 Threshold Value=0.00 feet -~ =interpolated/extrapolated station Ref MD Ref Ref Ref Offset Offset Offset Offset Horiz C-C Clear Dist [feet) TVD North East MD TVD North East Bearing [feet] [feet] [feet] [feet] [feet] [feet] [feet] [feet] [°] i Ellipse ACR MASD ACR ~ Sep [feet] Status [feet] 5600.00-1 4843.16 985.56 -2342.84 5349.37 4793.16 1642.52 -1169.12 60.76 1346.01 1173.13 172.88 PASS `z 5700.00.1 4942.23 990.85 -2355.40 5442.12 4874.71 1682.43 -1188.05 59.36 1358.52 1182.06 176.45 PASS 5800.00.1 5900.OOt 5041.62 5141.26 995.12 998.38 -2365.56 -2373.32 5532.85 5624.28 4954.29 5034.10 1721.80 1762.01 -1206.74 -1226.00 57.91 56.35 1370.60 1382.37 1 1190.73 1199.11 179.87 183.26 PASS PASS 6~.41U~ . `5241.09 _1tKiU64 ~-2~378,6~ E---5~ 3.13.1$ ,__ 5111.2) _ 180i.Tti . ` =i-24_5. ~54.7J -; ,394.a11 'i207~Z 185.4~ ~ RABS=~ 6100.OOt ~ 5341.03 1001.87 -2381.62 5799.96 5186.09 1841.24 -1264.60 53.08 --- 1405.80 1 1216.29 _ 189.51 PASS 6171.97 5413.00 1002.14 -2382.24 5861.01 5238.36 1869.51 -1278.57 51.84 1414.54 1~ 223.78 190.76 PASS 6200.00-1 5441.03 1002.14 -2382.24 5884.49 5258.37 1880.49 -1284.03 51.35 1418.08 , 1226.55 191.53 PASS 1 6300.00-1 5541.03 1002.14 -2382.24 5970.46 5331.46 1920.99 -1304.29 49.56 1431.84 1237.56 194.29 PASS ~G4f}0.04~ 6500.00] 6600.00.1 -_5641.03 1 5741.03 5841.03 ],_ 1002.14 1002.14 1002.14 2~822~ 2382.24 2382.24 ; 6456 5 6142.85 6231.01 _ _ 54CI4~4 5477.82 5552.84 ~ 1961' 64 2002.30 2043.62 _ '-1324:$_ -1345.34 -1366.25 '; ,;47 7 46.03 44.29 '_ ; . _1447.341 1464.51 1483.23 :.._ _ 1254.46 1265.21 1281.6 °196 88 ~ 199.30, 1--201.62 r F!5 PASS , PASS 6700.00]- 5941.03 1002.14 -2382.24 6320.17 5628.79 2085.18 -1387.49 42.57 1503.33 1299.51 203.82 PASS 6800.00-1 6041.03 1002.14 -2382.24 6404.59 5700.82 r--- 2124.40 -1407.57 40.97 1524.86 1319.22 205.64: PASS i U4 Oll~ - ~1~143 14(1~14 ~ 238224, E _ _f9$$ 7 -; 5772 2~ 63.4E 1427;3 -_:34~1~ ~ 1:517 ~ n_ 1344.6 2~T 13 , PAS':~ 7000.00]- 6241.03 1002.14 -2382.24 6576.04 5847.34 2203.84 -1447.78 37.87 _ 1572.3 1363.38 _ _ 208.98 _ PASS 7100.00]• 6341.03 1002.14 -2382.24 6664.43 5923.05 2244.54 -1468.34 36.34 1597.97 1387.40 210.56] PASS 7200.00.1 6441.03 1002.14 - -2382.24 6753 69 5999.69 2285.38 -1488.97 34.84 1624.63 1412.56 212.07 PASS 7300 OOp~ 6541.03 I 10 2.12.1 4 0 ~- ~ 2382.24 _ 6845 28 ~ 6078.56 2326 94 -1509.96 33.36 1652 22 1438.66 213 56~ PASS ! ,7A~ 40~ _ 664-1.03. ,_ 1~ Q(12.14 [ -2382.24 _ 69 9.2 ~ $6159.81 I 231 11 ~ -- - ~ -=153i2~ _ .:•_;31.94€ _ 16$Q57~~ ;:_ 1465.52E `215 46 FOSS? 7500.00 6741.03 1002.14 2382.24 7038.08 6245.46 2412.89 -1553.87 30.42 _ 1709.39 1492.75 - - = 216.64 PASS 7600.00.1 6841.03 1002.14 -2382.24 7133.35 6328.27 2454.58 -1575.87 29.04 1738.61 1520.61 218.00 PASS 7700.00-1 6941.03 1002.14 -2382.24 7229.50 6412.02 2496.23 -1598.10 27.69 1768.35 1549.03 219.31 PASS 7800 OOj•~ 7041.03 1002.14 -2382.24 7329 70 6499.65 2538 95 -1621.18 26.35 1798 36 1577.66 220.70 PASS ~ 790004`F~ _7141,413 _ IO(t2.14 ~2382.24; :_-7_30~k 09 ----6587:8 ._:.258102 _=ifi4~1.2q `;'2 5 .4 828.54 1. ' 1~^-606.52 , 222.[12~ P~5S 8000.00 j- 7241.03 1002.14 -2382.24 7527.20 6673.54 2621.05 -1666.28 . _ ~ 23.86 _ _ ~ ~ 1858.90 _ _ J 1635.73 223.18 - PASS . 8100.00] 7341.03 1002.14 -2382.24 7622.36 6757.75 2659.84 -1687.69 22.73 1889 61 1665 38 224 22J PASS 8200.OOf 7441.03 10 02.14• -2382.24 7721.33 6845.65 26 99.69 -1709.69 21.61 . 1920.55 . 1695.20 . 225.34 a PASS a 8300 OOj• 7541.03 ~ 1002.14 -2382.24 7820 75 6934 30 - 2 39 08 -1731.39 20.54 1951.59 1725.14 226 45~ PASS 84Q0 04t~ _ 7641.03 1002.t4~ -2382?4` 7410 00; 7414 17 2774 45{ -17504( 19 62~ 1382 87 1755 66~ 22 ~ '~"' ~ _s I • MARATHON Clearance Report Closest Approach KBU24-7X Version#1 Page 7 of 19 BAKER N1/6NES INTEQ perator MARATHON Oil Company -Slot Slot #KBU24-7X Area :Cook Inlet, Alaska (Kenai Penninsula) Well KBU24-7X Field Kenai Gas Field Well ore KBU24-7X Facility Pad #41-18 ~® l CLEARANCE DATA -Offset Wellbore: KBU33-7 Offset Wellpath: MSS<0-7910> Facility: Pad #41-18 Slot: slot#KBU33-7 Well: KBU33-7 Threshold Value=0.00 feet ~ =interpolated/extrapolated station Ref MD Ref Ref Ref Offset Offset Offset Offset Horiz C-C Ctear Dist Ellipse ACR MASD ACR [feet] TVD North East MD TVD North East Bearing [feet] Sep [feet] Status [feet] (feet] [feet] [feet] [feet] [feet] [feet] [°] [feet] 8500.OOj~ 7741.03 1002.14 -2382.24 7910.00 7014.17 r 2774.05 -1750.46 19.62 2016.72 1791.59 225.13 PASS 852 6.97 7768.00 1002.14 -2382.24 7910.00 7014.17 2774.05 -1750.46 19.62 2026.60 1802.10 224.50 PASS WELLPATH COMPOSITION Offset Wellbore: KR i133-7 f7ffcet wPn.,ath• wrcc~n_~otn~ ~ Start MD End MD Positional Uncertainty Model Lo Name/Comment Wellbore [feet] [feet] 0.00 7910.00 Photomechanical Magnetic (Standard) MSS <0-7910'> ICBU33-7 OFFSET WELLPATH MD REFERENCE -Offset Wellbore: KBU33-7 Offset Wellpath: MSS<0-7910> MD Reference: Actual Datum (RKB) Offset TVD & local coordinates use Reference Wellpath settings (See WELLPATHDATUMon page 1 of this report) • • • Field Kenai Gas Field ~Wellbore ~KBU24-7X Facility Pad #41-18 CLEARANCE DATA -Offset Wellbore: KU24-7 Offset Wellpath: GMS <0-5820'> Facility: Pad #41-18 Slot: slot #KU24-7 Well: KU24-7 Threshold Value=0.00 feet ~ =interpolated/extrapolated station Ref Ref Ref Ref Offset Offset Offset Offset Horiz C-C Clear Dist Ellipse MD TVD North East MD TVD North East Bearing [feet] Sep [feet] [feet] [feet] [feet] [feet] [feet] [feet] [feet] [°] [feet] ACR MASD ACR [feet] Status 0.00 0.00 0.00 0.00 0.53 0.00 -282.53 -149.52 207.89 319.66 307.10 12.56 PASS 100.00f 100.00 0.00 0.00 100.53 100.00 -282.53 -149.52 207.89 319.66 306.53 13.12 PASS 200.00 200.00 0.00 0.00 200.71 200.18 -282.28 -149.98 207.98 319.66 306.49 13.16 PASS i' ` 0 o 9 301.94 281.30 151.03 207.76 319.05 305.59 13.46 PASS 4 0O. ': 494.89 ;,_ -.4.(16 € ~_. g 64 __4Ql 71 .. ~ __401 t}3 R, 278.52 J -155,_03; `°_ . - 207.2 -~~ 317.79 1 303.b1i ';=.14.1 P°AS '. 8 t SOO.OOj~ 600.OOt 498.77 597.08 i 9.12 16.18 i : -21.67 -38.47 470.2 2 495.45 595.21 469.30 494.40 593.39 276.06 -275.19 -270.97 -160.29 -162.70 -174.26 _ 206.66 206.38 205.31 -- 317.34 317.40 317.66 -_ 303.02 303.03 302.96 14.31 14.37 14.70 PASS PASS PASS 700.OOt 694.31 25.23 ; -59.99 689.62 686.59 -266.31 -188.53 203.79 318.72 303.68 15.03 PASS x;$40 OOfi: ~._ 790' 18 ~_ . 36.25 , 8i5_16 ~ ;- _783 82 "'_ 779._ --' [ -" =261,,9) _: 20b'~ _ , ~-~02 9th ,_- ~ ~21.5 , SOS 9; [ "f 5 S ; P~1~S 900.OOt 884.43 49.19 116.93 884.83 877.47 -256.56 228.06 199.98 _ _ , 325.39 309.02 16.37 PASS 1000.00j~ 976.81 64.02 -152.20 983.40 972.43 -249.57 -253.53 197.91 329.59 312.22 17.37 PASS 1100 00~ 1067.06 80.72 -191.88 1084.52 1068.35 -240 74 -284.25 196.03 334.47 315.82 18.65 PASS 1200 OOt ~~oo~~ 1400.OOj~ 1154.93 ~'i leis 1322.59 99.22 _1i9:~~ 141.43 -235.85 ! ~saa~ -336.21 1184.78 z~as,?~ 1387.88 1161 74 r25~.~s; ~1344.32~ -230 20 .~ -~~:~~t~ ~ -203.99 319.13 ~.~ ~~~s.9a 403.89 194 19 : --~2sx 191.09 339 85 _v t_.~ s9 352.6 319.63 6 328.51 . 20.22 zz~ 24.15 PASS ~_~A~ PASS ISOO.OOj~ 1401.91 165.04 -392.32 1491.47 1433.15 -187.85 -454.66 190.02 359.71 333.21 26.51 PASS 1504.35 1405.29 166.10 -394.85 1495.95 1436.91 -187 11 456.97 189.98 360.03 333 41 26.62 PASS 1600.00' 1479.49 189.51 450.49 1594 46 1519 51 -170 25 507 94 189.07 366.51 337 66 28.86 PASS t70©.00~ ._ 1557.06 213.38 5066E 69 141 ~ . 16073 ~526Z -- -5610G ~= t~8.14 ~417~ ~ :~ ~1'24 ~ ~k~5 1800.OOj~ 1634.63 238.45 -566.83 1797.54 1685.52 -133.58 -618.95 ,_ 187.98 379.10 345.2 ~ 4 33.85 . PASS 1900.OOj~ 2000 OOt 1712.20 1789.77 262.92 287.39 -625.00 -683.17 1899.55 2004.05 1766.35 1846.82 -114.00 -92.79 -678.00 -741.19 188.00 188.68 384.46 388.79 347.92 349.45) 36.54 39.34 PASS PASS 2100 00~ 1867.34 311.86 =741.34 2101.35 1921.38 -72.88 -800.45 188.73( - 392.99 350.83 42.16 PASS 2240:00~~ _ 1944:91, .336.33 _794,52 '_ 2i98.6?~ _ - 1997 38 ' -~3 7~ 858' _~.fk~, 188.54 ~ - 397.89 _ 35243; . 4497 FADS`! 2300.OOt 2022.48 360.80 -857.69 2298.53 2077.03 -34.39 -915.18 188.28 -- 403.06 _ 355.30 47.76 PASS 2400.00-1 2100.06 385.27 -915.86. 2395.34 2155.68 -16.13 -968.59 187.48 408.65 358.17 50.48 PASS 2500.OOj• 2600.00 2177.63 2255.20 409.74 434.2 ~ -974.03 ~1032.20 2494.90 2595 20 2237.24 2319.93 2.26 -1022.65 186.80 414.68 361.49 53.19 PASS 2700.00 - _ 2332.7"1 - 45&.69 1090.37 ~ 2697 7~~ - 2404.9&, 40 31~ _ -_ _ -1/30.23: -- _ I$5.44~ 426.43 367.92; . ~8 gl' = PASS J - ,-_.~ • MARATHON Clearance Report Closest Approach KBU24-7X Version#1 Page 9 of 19 ~-;4 ~~,r BAKER N1~6HES INTEQ Operator MARATHON Oil Company Slot Slot #KBU24-7X Area .Cook Inlet, Alaska (Kenai Penninsula) Well KBU24-7X Field Kenai Gas Field Wellbore KBU24-7X ~? Facility Pad #41-18 1 CLEARANCE DATA -Offset Wellbore: KU24-7 Offset Wellpath: GMS <0-5820'> Facility: Pad #41-18 Slot: slot #KU24-7 Well: KU24-7 Threshold Value=0.00 feet -~ =interpolated/extrapolated station Ref Ref Ref Ref Offset Offset Offset Offset Horiz C-C Clear Dist Ellipse MD TVD North East MD TVD North East Bearing [feet] Sep [feet] [feet ffeetl ffeetl ffeetl ffeetl 1feeFl ffnPtl fol rr..,.ai ACR MASD ACR [feet] Status 2800.OOj~ 2410.34 483.16 -1148.54 s 2~ 797.06 2487.28 ~----. 59.47 i-...._i -1182.34 t 1 184.56 431.94 ~iccy 370.83 61.12 PASS 2900.00( 2487.91 507.63 -1206.72 2893.61 2567.33 77.68 -1233.16 183.52 438.02 374.34 63.68 PASS 3000.OOt 2565.48 532.10 -1264.89 3004.08 2658.25 99.44 -1291.98 183.58 443.32 376.97 66.35 _ PASS 3100.OOj~ ~ 2643.05 556.57 -1323.06 1 3 411 83 2746.07 123.78 -1354.89 184.21 446.02 376.80 69.22 PASS ?A4.#10 2720,62 ! _ 5$1,Q4 -138_i23 t " 3~19.40! ~=3,$'2;73 $_ ~_ -1418.20 _~''184.88 ~ - '; ~ _ 44~# ~ ' ' 3?5.0 _ i :~_' ?~2. SS r ~l'l~ 3300.00( 2798.20 605.51 -1439.40 3325.67 2905.94 173.73 -1482.95 _ 185.76 _ 447.15 , -- 371.77 75 37 , PASS 3400.OOt 2875.77 629.98 -1497.57 3429.25 2984.11 199.99 -1545.62 186.38 446.03 367.57 . 78.46 PASS 3500 00~ 2953.34 654.45 -1555.74 3531.66 3061.38 226.73 -1607.29 186.87 444.16 362.60 81.56 PASS 3563 27 3002.42 669.94 ~ -1592.55 3595.13 1 3109.15 243.44 -1645.59 187.09 442.84 359.33 83.51 PASS 3:($OOD~' ~'=303X:02 _ 67;8? (.-1613:79 ~ _3(3050 1 = 313,7 ~2$270 `z1~66_99 ~ 11i'~ 1 : ~ ' ~ 3700.00( 3110.00 702.65 -1670.32 ~ 3727.79 . , 3 08.91 ~- Z E ~ 277.68 _ -1726.05 _ z ~ , ~ ~ 187.47 _< ~ ~ 439.87 _ ~ 352.03 ._;_$~4 ~ a 87.84 ~~ PASS 3800.OOj- 3190.56 725.62 -1724.93 3829.71 3285.77 303.71 -1787.72 188.47 437.06 345.99 91.07 PASS 3900.00( 3272.64 747.77 -1777.57 3931.92 3362.91 330.89 -1849.01 189.72 432.48 338.15 94.33 PASS 4000.OOj~ 3356.19 769.07 1828.22 4028.65 ... 3435.91 356.31 -1907.16 190 83 427.74 330.11 97.63 PASS ~{#~~I(1~ :x_3441.1$. _~~7$4.~2 ~$'~6~{3 _~ 12'~<3(1 1 _351 i ~_ : 38~:~t1, r . _~1lb~t ~15 '~ ~ -~2~95 ~ _~__ 322. :~ P g3~ ~PA~j 4200.OOj~ 3527.46 809.10 1923.37 4230.09 3587.94 409.47 -2028.15 , _ __ 194.69 - ~~ ~~ 417.54 _ 313.35 > 104.19 PASS 4300.OOj~ 3615.07 827.80 -1967.82 4329.60 3663.08 436.72 -2087.42 197.00 411.76 304.43 107 33 PASS 4400.OOt 3703.90 845.60 -2010.14 4426.59, 3736.70 463.22 -2]44.75 199.39 406.71 296.45 . 110.26 PASS 4500 OOj~ 3793.91 862.50 2050.30 4523 26~ 8 7903 9 489 74 -2202.19 202.17 402.82 289.94 112.88 PASS - 6_ d 00~ ~885.0~'; 8~'$:~7 '~OR$:27' _ 4&19.03 __3$$2.2 ~ _ 515 5t8; ; - 22 59.0 3 ~=2C1~ 2~ - ~`~' --~--,""---~--'~` ~'~'~ 4687.23j~ 3965.36 891.65 -2119.59 4701.49 3944.57 538.59 __ _ _ -2308.08 208.10 _ 400.76 284.33 116.43 PASS 4700.OOt 3977.19 893.52 -2124.03 4713.19 3953.39 541.79 -2315.05 208.51 400.96 284.37 116.59 PASS 4800.OOj~ 4070.34 907.62 -2157.56 4804.68 4022.45 566.44 -2369.79 211.88 404.64 287.28 117.37 PASS 4900.00fi 4164.41 ' 920.77 -2188.83 4898.01 4092.89 591.36 -2425.72 215 72 412.00 294.71 117 30 PASS 5400,d0~ 4259.33! ° 93297 2Z1'T.Bi" _-4940.3_2 4162.54 61601 _2480.42 219716 - „' ~1~3,2I' 306:87 . . ' ~;.11634 PA 5 5100.OOj~ 4355.04 944.19 -2244.50 5084.83 4233.86 641.61 _ -2537.49 _ _ 224.08; _ ~ 438.27 323.70 _ ; 114.57 _ _ PASS 5200.00' 4451.48 954.44 -2268.87 5175.24 4302.10 666.50 -2591.33 228.24 457.39 345.36 112.03 PASS 5300.OOj~ 4548.58 963.71 -2290.90 5264.24 4369.28 691.02 -2644.34 232.35 481.07 372.12 108.95 PASS 5400.OOj~ S 4646.27 971.99 2310.58 5353 80~ 4436.98 715 64 -2697.54 236.48 509.17 403.64 105.53 FASS SOU.00~ _ 4744.44 _. 979.2$ _, _ _ ?327.94 5443 ~0; 45U5.24 740 11~ ~ 2750 36 - 240 4S 541 22j 439 20~ ? ~' 10 .0_~f PASS • • Field Kenai Gas Field ~Wellbore ~KBU24-7X Facility ]Pad #41-18 ~ CLEARANCE DATA -Offset Wellbore: KU24-7 Offset Wellpath: GMS <0-5820'> Facility: Pad #41-18 Slot: slot #KU24-7 Well: KU24-7 Threshold Value=0.00 feet '~ =interpolated/extrapolated station Ref Ref Ref Ref Offset Offset Offset Offset Horiz C-C Clear Dist Ellipse MD TVD North East MD TVD North East Bearing [feet] Sep [feet] (feet] [feet] [feet[ (feet! !feet! (feet! (feet! r~l rfPPri 1 i ACR MASD ACR [feet] Status 5600.00 f 4843.16 985.56 -2342.84 5532.75 4573.53 764.34 -2802.43 244.30 576.94 ~.___, 478.40 98.54 . PASS 5700.OOj~ 4942.23 990.85 -2355.40 5619.73 4640.17 788.49 -2852.86 247.87 616.16 521.04 95.12 PASS 5800.00 5041.62 995.12 -2365.56 5702.99 4703.95 811.77 -2901.05 251.10 659.08 567.23 91.85 PASS 5900.00 f 5141.26 998.38 -2373.32 5784.80 4766.62 834.65 -2948.40 254.11 705.60 616.77 ~ 88.83 PASS :110 "5241.U9 ° I000,(s4 -23~$:b~ , ::5811. __4786: ~_-..8?1f.~8~ .___29638 . ~': 254.82 ~ - -757.4 ~ - ~71.9~ '1"S 6100.OOj~ 5341.03 1001.87 -2381.62 5811.00 4786.69 841.98 -2963.56 254.64 __ 819.46 737.75 ~ 81.71 PASS 6171.97 5413.00 , 1002.14 -2382.24 5811.00 4786.69 841.98 -2963.56 254.60 869.39 791.21 78.18 PASS ' 6200.OOt 5441.03 . 1002.14 -2382.24 5811.00 4786.69 841.98 -2963.56 254.60 889.80 812.65 77.15 PASS 6300.00 5541.03 1 1002.14 -2382.24 5811.00 4786.69 841.98 -2963.56 254.60 965.71 892.05 73.67 PASS 4t1~3+ ,_"641 03 << 100Z~~4 X382_.;24 .~ 5811.00 „ : __47$fr _ ` _;; 9 '29 ~_ ;.:_254 ` ,- 6 ~ _ X75 1~k = ~0 ~'AS~~. 6500.OOj~ 5741 03 j 1002.14 -2382.24 5811.00 4786.69 841.98 -2963.56 254.60 _ 1128.87 1061.06 ~ 67.80 PASS 6600.00 5841.03] 1002.14 -2382.24 5811.00 4786.69 841.98 -2963.56 254.60 1214.58 1149.19 65.39 PASS 6700.00' 5941.03 1002.14 -2382.24 5811.00 4786.69 841.98 -2963.56 254.60 1302.33 1239.05 63.28 PASS 6800.00 f 6041.03 1002.14 -2382.24 5811.00 4786.69 841.98 -2963.56 254.60 1391.74 1330.29 61.45 PASS 1 _~~ '`~~4~~It~ i_-~#1.t1;}~ .23$2_~ L k -~ 4~$6.6~ ~ u~.-841 9 t, r.=~b~;~ .~.s_"__'~~ ~~ ~~~~4~_ 5 1`$ ~'._~.a._~~~j 7000.00- 6241.03 1002.14 -2382.241 58 11 00 4786.69 841.98 -2963.56 254.60 1574.38 1515.92 58.46 PASS 7100.001' 6341.03 1002.14 -2382.24 5811.00 4786.69 841.98 -2963.56 254.60 1667.20 1609.94 57.25 PASS 7200.00 6441.03 1002.14 -2382.24 5811.00 4786.69 841.98 -2963.56 254.60 1760.80 1704.60 56.20 PASS 7300 001' 6541.03, 1002.14 -2~ 382.24 5811 00~ 4786.69 841 98 -2963 56 254 60 1855 07 1799 79 55 28~ PASS 74[-0.fl1~ _~64T.03. `_ 10014 1-23$2:24 ;. 5831 00 -47$~r<f9 ~~~41 9t~k __-29!63 5. _._~ ~54~Q _4.J`}~~ _189~~ ~ <44$. f~~55~ 7500.00 j 6741.03 1002.14 -2382.24 5 0 4786.69 841.98 -2963.56 _ 254.60 2045.24 1991.46 _ 53.78. PASS ' 7600.OOt 6841.03 1002.14 -2382.24 5811.00 4786.69 841.98 -2963.56 254.60. 2141.00 2087.83 53.17 PASS 7700.00 6941.03 1002.14 -2382.24 5811.00 4786.69 841.98 -2963.56 254.60. 2237.13 2184.48 52.65 PASS 7800.OOj~ 7041 03 1002.14 -2382.241 58 011 0 4786.69 841 98 -2963.56 254 60 2333.58 2281.39 52 20) PASS 7'340.01) 7341.f13C __l00~1~ -23$2_24 LL_58I1 04~ _._~4~8b:6~ _~~84I.98 ~~2963.3 ; ~,==254 ''`. ~ Z430~~3 ' 23'7&.52 ;51.$1= `PSS;~ 8000.OOj~ 7241.03 1002.14 -2382.24 5811.00 4786.69 841.98 -2963.56 254.60 2527.32 _ 2475.84 _ 51.48 PASS 8100.OOt 7341.03 1002.14 -2382.24 5811.00 4786.69 841.98 -2963.56 254.60 2624.54 2573.34 51.20 PASS 8200.OOj~ 7441.03 1002.14 -2382.24 5811.00 4786.69 841.98 -2963.56 254.60 2721.96 2671.00 50.96 PASS 8300.00 1' 7541.03 1002.14 -2382.24 5811.00 4786.69 _ 841 98 -2963 56 254.60 2819.57 2768 79 50 77 PASS S4a0.00~, 7641.03 :: 1002:1 2382,24E 5811.00 4 _ _ 4786_6, _ 841 48~ _ -2963 56', _ . 254.60 .. _2917,33 > _ 2866 71! _50 62' PrLSS ~:' • Ma~aiHON Clearance Report Closest Approach KBU24-7X Version#1 Page 11 of 19 BAKER Nt~6HES INTEQ CLEARANCE DATA -Offset Wellbore: KU24-7 Offset Wellpath: GMS <0-5820'> Facility: Pad #41-18 Slot: slot #KU24-7 Well : KU24-7 Threshold Value=0.00 feet ~- =interpolated/extrapolated station Ref Ref Ref Ref Offset Offset Offset Offset Horiz C-C Clear Dist Ellipse ACR MASD ACR MD TVD North East MD TVD North East Bearing [feet] Sep [feet] Status [feet] [feet] [feet] [feet] [feet] [feet] [feet] [feet] [°] [feet] 8500.OOt 7741.03 1002.14 -2382.24 5811.00 4786.69 841.98 -2963.56 254.60 3015 24 2964 74 50 50 PASS tS~16.97 I 7768.001 1002.141 -2382.24 5811.001 4786.691 841.981 -2963.56 ( 254.60, 3041.67, 2991.20 50.47 PASS WELi.PATH CnMPnSiTi(1N nffent Wntlhna-o. rrr»d_~f nfr ,.+ xx~,.n...,~~.. r•n,ro ,n ~o~n,~ Start MD [feet] -- ---r ----- End MD Positional Uncertainty Model [feet] Log Name/Comment Wellbore -9.00 5811.00 Generic gyro -continuous (Standard) GMS <0-5820'> KU24-7 OFFSET WELLPATH MD REFERENCE -Offset Wellbore: KU24-7 Offset Wellpath: GMS <0-5820'> MD Reference: Glacier 1 (RKB) Offset TVD & local coordinates use Reference Wellpath settings (See WELLPATHDATUMon page 1 of this report) • MARATHON Clearance Report Closest Approach KBU24-7X Version#1 Page 12 of 19 CLEARANCE DATA -Offset Wellbore: KU24-7RD Offset Wellpath: MWD <3777-4800> Facility: Pad #41-18 Slot: slot #KU24-7 Well: KU24-7 Threshold Value=0.00 feet ~~. BAKER Nu~NEs INTEQ ~- =interpolated/extrapolated station Ref Ref Ref Ref Offset Offset Offset Offset Horiz C-C Clear Dist Ellipse MD TVD North East MD TVD North East Bearing [feet] Sep [feet] [feet] [feet] (feet] ffeetl ffeetl ffeetl ffeetl f°l ffPPtl ACR MASD ACR [feet] Status 0.00 0.00 0.00 0.00 0.53 0.00 -282.53 -149.52 207.89 319.66 ~...-1 307.10 12.56 PASS 100.001 100.00 0.00 0.00 100.53 100.00 -282.53 -149.52 207.89 319.66 306.53 13.12 PASS 200.00 200.00 0.00 0.00 200.71 200.18 -282.28 -149.98 207.98 319.66 306.49 13.16 PASS ~ 300.001 299.95 1.01 -2.41 302 49 301.94 -281 30 151.03 207.76 319.05 305.59 13.46 PASS ~(1Q_ Q~-~ '; 399.b3_ _ _ 4.~i6 ~~t ,~~Ftll ?I _ _4Q1.03 -278'5 f `- -155.4. 24'3.2: ^'_ '317.7 303.6 '.:`. 4.1 , ~*ASS ; 500.001 498.77 9.12 -21.67 495.45 494.40 -275.19 -162.70 206.38 _ ~ 317.40 _ 303.03 14 37 PASS ] 600.001 597.08 16.18 -38.47 595.21 593.39 -270.97 -174.26 205.31 317.66 302.96 . 14.70 PASS 700.001 694.31 25.23 -59.99 689.62 686.59 -266.31 -188.53 203.79 318.72 303.68 15.03 PASS 800 001 , 790.18 36.25 86.16 783 82 779.05 -261 91 206.03 201 90 321 54 305.95 15 59 PASS 1 4fi0 00# ~ ' = 884;43 _ 49.19 11~~~3 ; - -_ '~54 83 _~ Sz7;47; ~ -256.~~ __' 228. _. _. - ~ _~9 9 ; °-~ ~` ~ _ 4 y -~ ~ ~`'} '~c~,'v ~~23~ Pt4~~ 1000.001 976.81 64.02 152.20 ~~ 983.40 972.43 -249.57 253.53 197.91 _ 329.59 ~ 312.22 J 17.37 PASS 1100.001 1067.06 80.72 -191.88 1084.52 1068.35 -240.74 -284.25 196.03 334.47 315.82 18.65 PASS 1200.001 1154.93 99.22 -235.85 1184.78 1161.74 -230.20 -319.13 194.19 339.85 319.63 20.22 PASS 1300 001 4p0 9[l 1240 18 ~I 2 5~- 119 47 -- '~ 141r ~ -284.01 ~~36.~1 1285 77 ~ .t`38'~~$$ 1253 75 '-1~ 218 O 1 <~....~J~ 358.90 z:_°~~ 192 51 _ ~ <'1 ~~ 345 96 ~"~~,~~: ~ .:3~~. 323.90 ~ 3~~:~1 22.05 ~~- ~ PASS K P 1500.001 1401.91 165.04 -392.32 1491.47 1433.15 -187.85 -454.66 190.0 2- 359.71 333.21 _ 26.51 . PASS 1504.35 1405.29 166.10 -394.85 1495.95 1436.91 -187.11 -456.97 189.98 360.03 333.41 26.62 PASS 1600.001 1479.49 189.51 -450.49 1594.46 1519.51 -170.25 -507.94 189.07 366.51 337.66 28.86 PASS 1700 001 1557.06 213.98 508.66 1694 10 1601 93 152 62 -561.06 188 14 373 03 341.79 31 24 P ASS 4 B~iO 00~ 1634.63 23.8.4 -56~~83, 1797 ~4 . __" 1655 5~ 33 51= ~ _~6f8, 187 9{~ ,''' _. 37910 _ ~- ~--~~-33 85 _ _ f ~'A55 1 1900.001 1712.20 262.92 -625.00 1899.55 1766.35 -114.00 -678.00 188.00 _ 384.46 _ ~ 347.92 36.54 PASS 2000.001 1789.77 287.39 -683.17 2004.05 1846.82 -92.79 -741.19 188.68 388.79 349.45 39.34 PASS 2100.001 1867.34 311.86 -741.34 2101.35 1921.38 -72.88 -800.45 188.73 392.99 350.83) 42.16 PASS , 2200.001 2380.00 1944.91 •2022.48 336.33 : 3_60;8.0 -799.52 _55`7:+69 2198.62 ~-'~298,~3 1997.38 ~___~U'17 ~ -53.72 X34 3 -858.05 - =913.1. 188.54 t88:~ ~ 397.89 ~; ~.4©3.46 352.93 355,3{1 44.97 ~ : 47.7GF PASS FASO' 2400.001 2100.06 385.27 -915.86 2395.34 2155.68 -16.13 -968.59 187.48 _ _ 408.65 ___ 358.17 _ 50.48 PASS 2500.001 2177.63 409.74 -974:03 2494.90 2237.24 2.26 -1022.65 186.80 414.68 361.49 53.19 PASS 2600.001 2255.20 434.22 -1032.20 2595.20 2319.93 20.84 -1076.28 186.09 420.73 364.86 55.87 PASS 2700 001 2332.77 458.69 1090.37, _ 2 97.78 2404.98 40 31 -1130.23 185.44 426 43; 367 92 58.51, PASS ~ :2800001« ._241.0.34 _ 483.16 114$.54; _ 2797,QG _,_.2487.28 __-5947€ € - _ _-11& 342342 i84.55'f ~^----- ~#3i_~-1., _ ' - - ~I.i? _PASS! • • MARATHQN Clearance Report Closest Approach KBU24-7X Version#1 Page 13 of 19 BAKER I~IVGMES INTEQ 3~s'L P D ~ ... ~~.rz~., ~ ~~~?~~~ uL'~ 3 .3y~--Y'rs~ ~ .. - - Operator MARATHON Oil Company :Slot !Slot #KBU24-7X -~r.___, Area Cook Inlet, Alaska (Kenai Penninsula) 'Well KBU24-7X ~~~ Field Kenai Gas Field Wellbore KBU24-7X Facility Pad #41-18 CLEARANCE DATA -Offset Wellbore: KU24-7RD Offset Wellpath: MWD <3777-4800> Facility: Pad #41-18 Slot: slot #KU24-7 Well: KU24-7 Threshold Value=0.00 feet f =interpolated/extrapolated station Ref Ref Ref Ref Offset Offset Offset Offset Horiz C-C Clear Dist Ellipse MD TVD North East MD TVD North East Bearing [feet[ Sep [feet] [feet [feed [feed ffeetl ffeetl ffeetl ffeetl r~r rr ari 1 ACR MASD ACR [feet] Status 2900.00 f 2487.91 507.63 -1206.72 2893.61 2567.33 77.68 -1233.16 183.52 438.02 ,...,., 374.34 63.68 PASS 3000.OOf 2565.48 532.10 -1264.89 3004.08 2658.25 99.44 -1291.98 183.58 443.32 376.97 66.35 PASS 3100.00 2643.05 556.57 -1323.06 3114.83 2746.07 123.78 -1354.89 184.21 446.02 376.80 , 69.22 PASS 3200.OOj- 2720.62 581.04 1381.23 3219 40 2825.73 147 86 -1418.20 184.88 447.28 . 375.00 72 28 PASS 3300.00. _ 279$:2f~ 6_05;511 1-t~394d = __:.3325 6 __--2905 _ _ =_173 73 _ -- -148_45 ._185 7 '=_ - , 447.15 371.7 , ;73.3 ~3?~~i$~a 3400.OOj~ 2875.77 629.98 1497.57 3429.25 2984.11 199.99 -1545.62 _ 186.38 ___ _ _ 446 03 _ _ 367 57 78 46 PASS 3500.OOt 2953.34 654.45 -1555.74 3531.66 3061.38 6 73 -1607.29 186.87 . 444.16 . 362.60 3 . 81.56 PASS 3563.27 3002.42 669.94 -1592.55 3~ 595.13 3109.15 243.44 -1645.59 187.09 442.84 359.33 83.51 PASS 3600 00~ 3031.02 678.87 , 1613.79 3630 50 3135.74 252 70 -1666.99 187 12 442.06 357.40 . 84.66 PASS 70f100~ 3800.OOt 1,--3110~ 3190.5 f= 7f1~;G,~ 6 725.62 , 167(!.32 -1724.93 , "'372774 3848.75 ~~20 3300.24 ~~?7?~ 310.17 i ;=172~.d~ -1798.36 _-187 190.02 _ '>:439.$'~ ~~ 435.92 '. 352.1~ 344.64 ~ ___$7.'~~ 91.28 AS PASS 3900.OOj~ 3272.64 747.77 -1777.57 3989.73 3407.12 359.30 1875.96 194.21 422.69 328.78 93.91 PASS OOO.OOt 3356.19 769.07 -1828.22 4108.44 3496.57 409.58 -1935.60 196.63 400.59 302.55 98.04 PASS 4100 OOt _~1~00Q~ 3441.15 ?33"~~.~#~ 789 52 ~ 809_lQ 1876.83 ~ x923:37 4204 28 ,43(j122'~ 3568.38 _.-"- 3fi42.i, 452 10 ~ ' ._ 97~ -1982.73 ~-=2a31_t~ 197 43 :<~ ~~~~ 375 84 ` X51 1 _~ 274.86 ~7~ 100 98 ~ ~f~ PASS ~~a 4300.OOfi 3615.07 827.80 -1967.82 4393.34 3710.94 534.27 -2075.82 200.20 .~ 327.13 219.24 _ 107.90 PASS 4400.OOt 3703.90 845.60 -2010.14 4490.64 3784.85 576.15 -2123.27 202.78 303.24 191.68 111.56 PASS 4500.00 3793.91 862.50 -2050.30 4583.73 3855.94 616.07 -2168.18 205.57 280.13 164.59 115.54. PASS 4600 00~ ' 3885.03 878.47 2088.27 4675.87 3926.86 654 53 -2212 69 209 06 259 57 140 22 119 36 PASS 7Q0 00~i _ 397'F 1~( _ 893,52 2.124:03 47'72.2 a_ `' 4001 694 6~, ,_-25$:77 - ~ `; 214 f~i _ `_241 4T ,~~ 1~ . ~ ~ f2~~$ FASSj 766.02j~ 4038.58 902.93 -2146.42 4800.00 4022.92 706.16 -2271.98 _ . 212.54 _~. 233.94 _ 109.61 124.33 PASS 766.23j~ 4038.77 902.96 -2146.49 4800.00 4022.92 706.16 -2271.98 212.52 233.94 109.61 124.33 PASS 800.OOt 4070.34 907.62 -2157.56 4800.00 4022.92 706.16 -2271.98 209.60 236.48 113.28 123.20 PASS 4900.001' O 4164.41 ? 920.77 2188.83 4800.00 4022.92 706 16 -2271.98 201.18 i 270 16 161.15 109 O1 PASS S QOAO~ 4259.33 93.97 =2217.$!. . _4800.00 4022.9 _ X06 Itk .'_2271.9& ~ ` 1~3.43~ _ 332 0d ~ 41'60 2 90 A~6t 'PAS 5100.OOt 4355.04 944.19 -2244.50 4800.00 4022.92 706.16 -2271.98 186.59 _ 409.54 _ - 334.13 - 75.41 PASS 5200.OOj~ 4451.48 954.44 -2268.87 4800.00 4022.92 706.16 -2271.98 180.72 495.30 430.75 64.55 PASS 5300.OOj- 4548.58 963.71 -2290.90 4800.00 4022.92 706.16 2271.98 175.80 585.67 528.83 56.84 PASS 5~0 001' _0 OQ~, 4646.27 ~744.49',. 971.99 - 979,28 2310.58 2327.90 4800.00 _ _4800.003 _ 440~~~'9~2 '~ 706.16€ 706.166 = --..,_2271.98 -2 71.98 171.74 _ 168.43 678 77 773 SS ~~627 47 726 3t1 51 30 47.25 PASS _PASS • • MARATHON Clearance Report Closest Approach KBU24-7X Version#1 Page 14 of 19 BAKER I~IV6NES INTEQ Operator MARATHON Oil Company Slot Slot #KBU24-7X ~~~~ Area .Cook Inlet, Alaska (Kenai Penninsula) i Well KBU24-7X Field Kenai Gas Field Wellbore KBU24-7X Facility Pad #41-18 CLEARANCE DATA -Offset Wellbore: KU24-7RD Offset Wellpath: MWD <3777-4800> Facility: Pad #41-18 Slot: slot #KU24-7 Well: KU24-7 Threshold Value=0.00 feet ~ =interpolated/extrapolated station Ref Ref Ref Ref Offset Offset Offset Offset Horiz C-C Clear Dist Ellipse MD TVD North East MD TVD North East Bearing [feet] Sep [feet[ ~feet~ ffeetl ffeetl ffeetl ffeetl rfnPtl rrPPri roi «.....~ x ACR MASD ACR [feet] Status 5600.OOt 4843.16 985.56 -2342.84 4800.00 4022.92 ~ 706.16 2271.98 ~ 165.77 869.42 1.825.18 44.24 PASS 5700.00fi 4942.23 990.85 -2355.40 4800.00 4022.92 706.16 -2271.98 163.67 965.99 924.01 41.98 PASS 5800.001' 5041.62 995.12 -2365.56 4800.00 4022.92 706.16 -2271.98 162.05 1063.01 1022.74 40 27 PASS 5900.OOt 5141.26 998.38 -2373.32 4800.00 4022.92 706.16 -2271.98 160.87 1160.32 1121.34 . 38.98 PASS 6Og0.00 :5241 #1~ ; . 1Of10._ 2~7$,b~ 480q.0~q' ~``4d~2.9~ '~06 l ~ c2271.9&' 1f~Q _ ~I _Z57 7 l 1219 ~ ~ •: 3~ 0 =FAS. 6100.OOt 5341.03 1001.87 -2381.62 4800.00 1 4022.92 706.16 -2271.98 _ 159.66 _ , .. 1355.32 _ -- 1318.02 ~ _ x 37.30 PASS 6171.97 5413.00 1002.14 -2382.24 4800.00 4022.92 706.16 -2271.98 159.57 1425.51 1389 01 36 50 PASS 6200.00f 5441.03 1002.14 -2382.24 4800.00 4022.92 706.16 -2271.98 159.57 1452.86 . 1416.48 . 36.38 PASS 6300 00 f 5541 03 f 1002.14 2382.24 4800 00 4022.92 706 16 -2271.98 159 57 1550.62 1514.62 36.00 PASS ~4~0OO~; i'_5641t13 ~~011_2:14 ~ ~382,2A~ :_.. 4$QO.OtI , 4tF~2~ ~ -62 ~ ~~2271: - f3~5 ~= '1~4&:6~ _ 1612~~ _~~ t~±~-~ 6500.OOj~ 5741.03 1002 14 2382.24 4800.00 4022.92 706.16 -2271.98 _ _ 159.57 1746.90 ,_ , 1711.36 Y, _ 35.54 , PASS 6600.OOj~ 5841.03 1002.14 -2382.24 4800.00 4022.92 706.16 -2271.98 159.571 1845.34 1809.92 35.42 PASS 6700.OOt 5941.03 1002.14 -2382.24 4800.00 4022.92 706.16 -2271.98 159.57 1943.94 1908.59 35.35 PASS 6800.001- ~9!E111 00 6041.03 `141 03 1002.14 1~2 1~ -2382.24 ~3 4800.00 4022.92 706.16 -2271.98 159.57 2042.68 2007.34 35.33 PASS . s224 ;480011[7 . `_ ~1022~ ,~ 3Q616 ; =2271:9 _ ~.1.59~~ ~.~' _ti~,~ ~` _ 3106,1,- ,=_ ~~~ ~P 7000.OOj~ 6241.03 1002.14 1 2382.24 4800.00 4022.92 706.16 -2271.98 159.57 2240.48 _ 2205.08 _ 35.40 _ PASS 7100.OOj~ 6341.03 1002.14 -2382.24 4800.00 4022.92 706.16 -2271.98 159.57 2339.53 2304.04 35.48 PASS 7200.001' 6441.03 1002.14 -2382.24 4800.00 4022.92 706.16 -2271.98 159.57 2438.65 2403.07. 35.58 PASS 7300 00 f 6541 03 1002.14 -2382.24 4800.00 4022.92 706.16 -2271.98 159.57 2537 84 2502 13 35.71 PASS 7._ _O.Otl~, ~f641 03 _:_ 1002.141 2382.24 4$OU.00 [ - . 4022 4 ~ _ 07 6 1 1 ~-2271 9$' '- =. 1`59 ~ °ZG~7 09 _Z~41 ~ ~~ CABS 7500.00 j~ 6741.03 1002.14 -2382.24 4800.00 4022.92 706.16 -2271.98 . _ - 159.57 2736.40 _ _ 2700.40 ~ 36.00 PASS 7600.00 j~ 6841.03 1002.14 -2382.24 4800.00 4022.92 706.16 -2271.98 159.57 2835.75 2799.59 36.17 PASS 7700.OOj~ 6941.03] 1002.14 -2382.24 4800.00 4022.92 706.16 -2271.98 159.57 2935.15 2898.80 36.35 PASS 7800.00 7041.03 1002.14 -2382.24 4800.00 4022.92 706.16 -2271.98 159.57 3034.59 , 2998.05 36.54 PASS ~900.1I0~ '7141 03[ _ .1042:14 2382:24 _ 480f1 ~i . _ = 9022 °_ 706,16. -2271.8& ' 159 Sfi _~ 31 34.06; =- 3097. : 36 '4[ 'ASS`! 8000.001' 7241.03 1002.14 -2382.24 4800.00 4022.92 706.16 -2271.98 159.57 __ . . 3233.57 - _ 3196.62 . 36.96 PASS 8100.00 7341.03 1002.14 -2382.24 4800.00 4022.92 706.16 -2271.98 159.57 3333 11 3295 93 37 18 PASS 8200.00]- 7441.03 1002.14 -2382.24 4800.00 4022.92 706.16 -2271.98 159.57 . 3432.67 . 3395.26 . 37.41) PASS 8300.00]- 7541 03~ 1002.14 2382.24 4800.00 4022.92 706.16 -2271.98 159.57 3532.26 3494 62 37 64 PASS 840000~~ 764103_ 1002:14 2382.24+ 4800.00 _ 4022 921 _70616 =227198 - 159 57 b 1 87 . 3593 = . : A . _ , _._ _ , . _:__ __3 . 3 , ,-- .98 3789 P SS- • • CLEARANCE DATA -Offset Wellbore: KU24-7RD Offset Wellpath: MWD <3777-4800> Facility: Pad #41-18 Slot: slot #KU24-7 Well: KU24-7 Threshold Value=0.00 feet ~' =interpolated/extrapolated station Ref Ref Ref Ref Offset Offset Offset Offset Horiz C-C Clear Dist Ellipse ACR MA5D ACR MD TVD North East MD TVD North East Bearing [feet] Sep [feet] Statu! [feet] [feet] [feet] [feet] [feet] [feet] [feet] [feet] [°] [feet] 8500.OOj~ 7741.03 1002.14 -2382.24 4800.00 4022.92 706.16 -2271.98 159.57 3731.50 3693.36 38.14. PASS 8526.97 7768.00 1002.14 -2382.24 4800.00 4022.92 706.16 -2271.98 159.57 3758.37 , 3720.17 38.21 PASS HOLE & CASING SECTIONS offset wPnhnrP• Irrr~a_~12n nfFeo+ won.,o+h. Air\aIT ~~~~~ ~Qnn~ String/Diameter Start MD [feet] End MD Interval Start TVD [feet] [feet] [feet] End TVD [feet] Start N/S f t _.. - ---- Start E/W f End N/S f End E/W [ ee ] [ eet] [ eet] [feet] 8.Sin Open Hole 3777.00 4800.00 1023.00 3236.99 4013.92 2.35 -580.76 129.13 -738.07 WELLPATH COMPOSITION Offset Wellhnret Kii24_7R1) tlffept Wallnath• Aiiwn ~z~~~_dQnn~ I Start MD End MD Positional Uncertainty Model Log Name/Comment Wellbore [feet] [feet] -9.00 3777.00 Generic gyro -continuous (Standard) GMS <0-5820'> KU24-7 3777.00 4800.00 NaviTrak (Standard) MWD <3777-4800> KU24-7RD OFFSET WELLPATH MD REFERENCE -Offset Wellbore: KU24-7RD Offset Wellpath: MWD <3777-4800> MD Reference: Glacier 1 (RI{B) Offset TVD & local coordinates use Reference Weddpath settings (See WELLPATHDATUMon page 1 of this report) MARATHON Clearance Report Closest Approach KBU24-7X Version#1 Page 16 of 19 INTEQ - - __ _ _---_.__~..~.e._, perator MARATHON Oil Company Slot Slot #KBU24-7X Area Cook Inlet, Alaska (Kenai Penninsula) Well KBU24-7X Field Kenai Gas Field Wellbore ~ KBU24-7X Facility '-.,Pad #41-18 ~ CLEARANCE DATA -Offset Wellbore: KBU43-7X Offset Wellpath• MWD <0-8610> Facility: Pad 41-7 Slot: Slot #KBU43-7X Well: KBU43-7X Threshold Value=0.00 feet -~ =interpolated/extrapolated station Ref MD Ref Ref Ref Offset Offset Offset Offset Horiz C-C Clear Dist Ellipse ACR MASD ACR [feet] TVD North East MD TVD North East Bearing [feet] Sep [feet] Status ffeetl ffeetl ffeetl 1fPPt1 ~FPPt~ rf Pit rf .,~i ro, 0.00 0.00 0.00 0.00 3987.23 3397.13 4055.37 -615.99 351.36 5325.97 5090.16 235.80 PASS 100.00 j~ 100.00 0.00 0.00 4040.46 3437.84 4021.22 -617.3 L 351.27 5262.36 5025.58 236.79 PASS 200.00 200.00 0.00 0.00 4093.64 3478.72 3987.23 -618.70 351.18 5199.12 4961.35 237.77 PASS 300.00 299.95 1.01 -2.41 4141.66 3515.79 3956.73 -619.84 351.13 5135.22 4896.31 238.91 PASS 4flIl.UD `_ 39.6 i ____4,06 ~ '-964 _440i.b4 ~_, 3712.'~3~ . - 37$7.4q~ : _ 626:22 . _ - 350!74; ' ` _. X066.76 1 ` 4834.12 ~ . •~32.~- ~ 500.00 f 498.77 9.12 -21.67 4460.65 3757.2 2 3748.48 -628.00 350.79 4996.80 4763.58 ~_ 233.22 PASS 600.00 597.08 16.18 -38.47 4516.76 3799.45 3711.55 629.33 350.92 4925.44 4691.63 233.82 PASS ' 700.00 f 694.31 25.23 -59.99 4568.45 3838.44 3677.66 -630.77 351.12 4852.99 4618.51 234.48 PASS 800.OOj~ i~90.18 36.25 -86.16 4627.11 3882.79 3639.29 -632.62 351.38 4779.62 4544.82 234.80 PASS =3U t10 1000.00 ~~ 884, 976.81 49:19 ~ 64.02 -,1.16_93 152.20 ,' - 48-1213 4856.59 1 r= 4Cf2101~' 4054.00 3516.3A~ 3486.5 6~ 1~ 5 635.31 - -, 351 ~ 351.97 _ ~~`/lY4.fii 4627.76 a :4473:88 4397.08 _ } =3p 23 230.68 ~ 1'?~_' PASS 1100.OOt 1067.06 80.72 -191.88 4896.19 4083.49 3460.12 -635.44 352.52 4551.48 4320.2 2 231.25 PASS 3 1200.001- 1154.93 99.22 -235.85 4933.73 4111.54 3435.17 -635.43 353.17 4475.46 4243.55 231 92 PASS ~ 1300 OOt 1240 18 119.47 -284.01 - 4969 80 4138.57 3411 29 ~-~ 635 43 353 91 4400.02 4167 55 . 232.48 PASS 14[10 00 1500.00 __ 13~ 5._ 1401.91 t~ 141;43 165.04 -33h.2I -392.32 ~~ 67 5041.3 K __= 41t~r~ ~ 4 4192.37 j =387 tt`~ 3364.13 r, >~ 63~~8 635.80 __~ ~~ 3~4 73 355.6 ~ 4~~5 4f ~ 5 4252.07 ~U92 52 4018.77 ~'_ }2.9~i 233.31 PASS PASS 1504.35 1405.29 166.10 -394.85 5042.85 4193.51 3363.14 -635.82 355.69 4248.91 4015.59 233.32 PASS 1600.00 f 1700.00 ~ 18QO:OCk~ 1479.49 1557.06 _ L634 63E 189.51 213.98 _ ~ -450.49 -508.66 -566,$3 5075.73 5110.23~ - 5143.18t 4218.28 r 4244.33 _ 4269.27 3341.54 - 3318 93 L- _ 37 38 -636.27 -636.74 ~a 63't,2tl ~ 356.63 357.64 j ~~35$ 6 4179.81 4108.35 = ~-4Q3'7.74E ` 3946.10 ~3874~.33 __3 8033f}9( 233.71 234.03 ~~ ~~4a~ PASS PASS ~t~ASS~~ 1900.00 f 1712.20 262.92 -625.00 5176.89 4294.84 3275.41 -637.69 359.76 3968.03 3732.71 235.32 PASS 2000.OOj~ 2100.OOj~ 2200 00 f 1789.77 1867.34 1944 91 287.39 311.86 336.33 -683.17 -741.34 799.52 5217.21 5258.85 5301.84 4325.44 4357.08 4389.76 3249.19 3222.12 3194.17 -638.16 -638.42 -638.63 0.87 2.03 3 22 3899.22 3831.32 3764.36 3663.45 3595.07 3527.61 235.77 236.25 236.76 PASS $ PASS PASS 230000 ~OZ2.48 _ '85'7,69 _534I1.4{sl 4419T3 X3169.11 '. -639.01 ' 445 = =369 5.42 '3460 84 :237 58 PA': 2400.OOj- 2100.06 385.27 -915.86 5374.65 4445.18 3146.97 -639.63 _ 5.71 _ 3633.57 , , 3394.83 --- . 238.74 ~ PASS 2500.OOj~ 2177.63 409.74 -974.03 5401.76 4465.90 3129.50 -640.08 7.00 3569.98 3329.59 240 39 PASS 2600.OOj- 2255.20 434.22 -1032.20 5430.87 4488.25 3110.84 -640.45 8.33 3507.75 3265.67 . 242 08 PASS 2700.OOj ,2$00 00~ 2332.77 , 2410 34 458.69 TT483_16 -1090.37 -l I48.54~ 5471.34 _ _ 5505 7?~ 4519.37 __ _ 4545.84 - -- 3084.97 3063 04 ._-._-- -640.90 -- '641.2.9_ 9.71 ~~ lia~~ 3446.83 - --3387_.ZS; 3203.50 -__3142.211 . 243.33 - --245.041 PASS PASS • ~~ ~. BAKER Nu~NEs • • CLEARANCE DATA -Offset Wellbore: KBU43-7X Offset Wellpath: MWD <0-8610> Facility: Pad 41-7 Slot: Slot #KBU43-7X Well: KBU43-7X Threshold Value=0.00 feet ~- =interpolated/extrapolated station Ref MD Ref Ref Ref Offset Offset Offset Offset Horiz C-C Clear Dist Ellipse ACR MASD ACR [feet] TVD North East MD TVD North East Bearing [feet] Sep [feet] Status ffeetl ffeetl ffeetl ffrntl ffaart rfoo~i rco.,a ro, 2900.OOj~ 2487.91 507.63 -1206.72 5535.68 4568.99 ~ 3044.04 ~-641.64 ~ ~ 12.56 3329.20 13082.05 247.15 PASS 3000.OOj~ 2565.48 532.10 -1264.89 5569.81 4595.47 3022.50 -642.04 14.04 3272.75 3023.55 249.20 PASS 3100.OOj- 2643.05 556.57 -1323.06 5607.97 4625.13 2998.49 -642.48 15.57 3217.88 2966.68 251.20 PASS 3200.OOj~ 2720 62 ~ 581.04 1381.23 5629.73 4642.11 2984 87 -642.72 17 08 3164.79 2910.52 254 27 ? PASS 33Q0.~ ;:2798 2ti _ :&03.31 , -1 94 4 ~ ~GSO.ti~ __4658<p'T _ X972 . ; 642.46 '.;=18. ~.3T-13.70 ~ ZS~fx;~l ~ ~7 5 ~~SS!; 3400.OOf 2875.77 629.98 -1497.57 5670.92 4674.57 2959.53 -643.22 ~ 20.14 _ 3064.70 2803.65 ~ . 261.05 PASS 3500.OOj~ ~2953.34 654.45 -1555.74 5698.44 4696.48 2942.88 643.59 21.73 3017.86 2753.52 6 34 PASS 3563.27 3002.42 669.94 -1592.55 5717.14 4711.43 2931.66 = 643.87 22.76 2989.33 2722.89 266.43 PASS 3600.00 3031.02 678.87 ' -1613.79 5728.19 4720.29 2925.05 -644.06 23.35 2973.10 2705.43 267.67 PASS 37DD C-=~~IQ#tU _ x,45 ': .° -I~~?,32 r 55704 4743`:~4 ~ ~ 29073 6A 4 54 ~ ~ 3800.OOt 3190.56 _ 6 , ~ -1724.93 5785.61 ,. .- 4766.62 2891.14 ~ _ ~.~ -644.91 : _~ Z49~ v 26.51 _{~~°~_?9,8ti 2887.88 ~ ~~ 2612.87 ; ~ 7I 275.01 __~-~ PASS 3900.OOj- 3272.64 747.77 -1777.57 5833.73 4805.72 2863.10 -645.51 28.15 2847.19 2569.26 277.93 PASS 4000.OOj~ 3356.19 769.07 -1828.22 5892.96 4853.93 2828.71 -646.56 29.84 2807.42 2527.00 280.43 PASS 4100 OOj~ 3441 IS 789.52 -1876.83 5942.06 4893.88 2800.19 -647.48 31.44 2768.48 2484.88 283.60 PASS ~~ = 52'7~6 ~- 809~ r 1 £~ 973 ~6U _~_ .:~9Y23?'7 Z~79 1& _w~}f~fl_ '~. ~..:' 29 ~~ ~'~~-~ ~ _ ~ Z3 E 6 ? 8Z54~ =~'t1:8_ 4300.OOj~ 3615.07 0 -1967.82 6019.12 4957.09 2756.12 -648.58 34.38 ,_ -- 2694.411 ( ~ 2403.04 _ _ _ 291.36 PASS 4400.OOj~ 3703.90 845.60 -2010.14 6061.99 4992.56 2732.05 -649.13 35.81 2659.26 2364.11 295.15 PASS 4500.OOj- 3793.91a ~ 862.50 -2050.30 6106.19 5029.38 2707.62 -649.78 37.20 2625.32 2326.41 298 91 PASS 4600.00- 3885 03 878.47 -2088.27 6146.02 5062 86 2686.03 650.47 38 50 2592.64 1 2289 75 . 302.89 PASS 4206 v~'! 9 177 9177 ` -`~ 8~3;~~~ 212~44r ~1 5(i; _ ~' S04'F.2 8 ~ ~ 26f~: ~~1' S - 1?i3 -'. ~ "_ _3 7~ _ ~~ 25fi1.~i 22`4 ~ , ==9 $3~ ' 5 4800.OOt 4070.34 907.62 ~ -2 157.56 6229.73 _ 5134.31 _ 2642.48 _ -652.40 40.95 2531.26 --- 2220.65 _ . , 310.61 ~ PASS 4900.OOj~ 4164.41 920.77 -2188.83 6273.30 5172.05 2620.70 -653.51 42.09 2502.46 2188.14 314.32 PASS SOOO.OOj~ 4259.33 932.97 -2217.81 6317.07 5210.30 2599.48 -654.65 43.17 2474.89 2156.95 317.94 PASS 5100.OOj~ 4355.04 944.19 -2244.50 6360.29 5248.36 257919 -655.66 44.1 8-2448 60 2127 10 321 50 PASS 52tl0~ ~44a1 48~ '_ 954.44 2265:87 _ 54U64'~ ._5284~~~ _.L_~56p 88 ___ ,656.46; ' _ 45.11 . _ _ 2423.6 . ~04~:: . ~ ~~25 1T4j ~PAS S 5300.OOj~ 4548 58 963.71 -2290.90 6444.98 5324.23 2541.44 -657.16 46.00 _ 2400.00 2071.72 ~ 328.28 . PASS 5400.OOj- 4646.27 971.99 -2310.58 6498.70 5373.05 2519.03 -658.13 46.89 2377.42 2046.36 331 06 PASS 5500.00 ~' 4744.49 ~ 979.28. -2327.90 I 65 8.598.59 5 I 5 27-.88 4 2494.96 659.19 47.7 5 2355.61 2022 09 . 333 52 PASS 5600.00' 4843.16 985.56 2342 84 6623 38 5487.69 2470 11 = 660.6'6 48 57 2334.32 1998 62~ . . 335 70 PASS ~ ,5700.QO~;G _ 494`x.23= - 990.85 ' 2355,40 .:6685 78~ --- - 5545.S8i 2447 68 -6(2:62 .. 4928t ___ - 2313.St} _ 1975 69~ , - _ 337.81 - ? ~PASS • MARATHQN Clearance Report Closest Approach KBU24-7X Version#1 Page 18 of 19 INTEQ ~uperator [MARATHON Oil Company Slot Slot #KBU24-7X Area Cook Inlet, Alaska (Kenai Penninsula) Well KBU24-7X '' Field ;Kenai Gas Field Wellbore KBU24-7X Facility Pad #41-18 CLEARANCE DATA -Offset Wellbore: KBU43-7X Offset Wellpath: MWD <0-8610> ~ Facility: Pad 41-7 Slot: Slot #KBU43-7X Well: KBU43-7X Threshold Value=0.00 feet fi =interpolated/extrapolated station Ref MD Ref Ref Ref Offset Offset Offset Offset Horiz C-C Clear Dist Ellipse ACR MASD ACR [feet] TVD North East MD TVD North East Bearing [feet] Sep [feet] Status ffeetl ffeetl ffeetl ffPPtl rf art rs ,.a rs,.,.~, .a, 5800.OOj- 5041.62 995.12 -2365.56 6753.86 ---- 5609.94 ---. 2424.78 r---`r -665.19 r l 49.94 2293.08 ~iccy 1953.46 339.62 PASS 5900.00- 5141.26 998.38 -2373.32 6827.56 5679.80 2401.53 -668.63 50.54 2272.63 1931.49 341 13 PASS i 6000 00~ 5241.09 1000.64 -2378.68 6903.45 5752.17 2379.07 -672.49 51.07 2252.19 1909.71 . 342.48 PASS 6100.OOj~ ` ~ .5341.03 1001.87 -2381.62 697849 5824.06 235788 -676.49 5].51 2231.49 1887.74 343.74 PASS 1.97 .~1'1 S~i3~ `_ i00Z~14~ ~ -2382.2 ,'.70241 `_5_8b8:~ i ::.~234~ 8G '-69:0 ', Si.73~ ~`22166~ _1872 ~i4 I-3 P,S; 6200.00 j 5441.03 1002.14 -2382.24 7041.71 5884.92 2341.46 -680.07 51.80 2210.93 . _ 1866.55 . 344.38 a PASS 6300.00- 5541.03 1002.14 -2382.24 7124.60 5965.38 2321.95 -685.34 52.13 2191.23 1846.00 345.23 PASS 6400.OOj~ ~ 5641.03 1002.14 -2382.24 7203.06 6041.92 2305.75 -691.50 52.37 2172.27 1826.16 346 11 PAS5 6500 00-~ Ot100 5741.03 1002.14 2382.24 7271 18 6108.59 2292 94 696.89 52 55 2154.46 1807.29 . 347.17 PASS ~ €~._5b41.0~ ~ 100;14 , 2382.291 =734 I~ ~.; ; ~l&35.. t_~2?$D •`x02: 1__ •~ ` :52'7 -`2t- 0< ~ ~ 1 ~~ , ~~~ 6700.OOj- 5941.03 1002.14 -2382.24 7422.64 6257.77 2 70.42 - _ 7 0.02 ~1 ,. _ ~ 52 82 - _ -~ ~ f Y 2122.54 -~ 1773.85 j 348 69 ' PASS 6800.OOj~ 6041.03 1002.14 -2382.24 7509.46 6343.61 2261.10 -718.91 52.88 2107.89 1758.81 . 349 08 PASS 6900.OOj• 6141.03 1002.14 -2382.24 7602.70 6435.89 2253.69 -729.83 52.86 2093.75 1744.48 . -349 27 PASS 7000 OOt 6241.03 1002.14 2382.24 7691 04 6523.23 2250 20 742 63 52 72 2079.81 1730 37 . 349.45 PASS f11.0 1:.1~t1~ _~.~4 238~i_2~ :'7'758:? f ~~~» 224466 _9_ ~~2~~ ~ 1~'t69'~ ;_ ~ P~1 7200.OOf 6441.03 1002.14 2382.24 7823.28 6653.94 2250.23 _ 762.61 52.38 3 2055.79 ,_ _ 1705.31 350 47 ~~ PASS '- 7300.00-~ 6541.03 1002.14 -2382.24 7904.97 6734.85 2251.71 773.77 52.16 2046.02 1695.41 . 350 61 PASS 7400.OOj~ 6641.03 1002.14 -2382.24 7999.60 6828.67 2253.19 -786.08 51.91 2036.68 1686.14 . 350.54 PASS 7500 00 f 6741 03 1002 14 2382.24 8094 14 6922.43 2254 57 798 09 51.67 2027 57 1677.09 350.47 PASS ~b4t1T1[~ ., X841 43 - 100~_14~ -2382:24 8$4 1~ _ 741I~79' _ 22514 : 80913[ -`. :~4j _' y81888~ ; -_-_1668 J ; _ 35f1~~ 1'' 7700.00 j 6941.03 1002.14 -2382.24 8285.50 7112.31 _ 2257.82 -- 821.61 ~ 51.18 ; _.,__ 2010.39 1660.08 - 350 30 PASS 7800.00f 7041.03 1002.14 -2382.24 8382.54 7208.60 2259.59 -833.53 50.93 2001.95 1651.75 . 350 20 PASS 7900.00- 7141.03 1002.14 -2382.24 8482.55 7307.89 2260.96 -845.40 50.68 1993.58 1643.52 . . 350 06 PASS 0 0 1 2262.10 -857.11 50 44 1985 21 1635.28 . 349.94 PASS - `8 (10. 00 :;7341.03. 1002.14 2382:24. _._86 000 ^-_7434;4G' 2262.42 1 .36~ ~Sa37 _~ 1978 17 ~16~7 57 35060` PSS 8190.81 7431.84 1002.14 -2382.24 8610.00 7434.46 _ 2262.42 -860.36 50.37 . 1975.96 . 1625.13 350 83 PASS ~ 8192.SOj• 7433.53 1002.14 -2382.24 8610.00 7434.46 2262.42 -860.36 50.37 1975.96 1625.13 . 350 83 PASS 8200.00- 7441.03 1002.14 -2382.24 8610.00 7434.46 2262.42 -860.36 50.37 1975.97 1625.16 . 350 82 PASS 8300.OOj 7541.03 1002.14 -2382.24 8610.00 7434.46 2262.42 -860.36 50.37 1978.83 1628.66 . 350 17 ' P ASS ' ~84t}0.00~_ -7641.03~~ . l©02.14 23$2,24, __$610Ad ---743~4,4Cr _226242 -860.36! - S0~?€ 1986 73 ~ . 1638 06; . 348 67 . ~P SS _ . _ __ _ _ . . . . t~. C BAKER NVGHES • NIARATHQM Clearance Report Closest Approach KBU24-7X Version#1 Page 19 of 19 RATHON Oil Company k Inlet, Alaska (Kenai Penninsula) ai Gas Field #41-18 #KBU24-7X J24-7X J24-7X CLEARANCE DATA -Offset Wellbore: KBU43-7X Offset Wellpath: MWD <0-8610> Facility: Pad 41-7 Slot: Slot #KBU43-7X Well: KBU43-7X Threshold Value=0.00 feet ~' =interpolated/extrapolated station Ref MD Ref Ref R f BAKER N11611ES INTEQ e Offset Offset Offset Offset Horiz C-C Clear Dist Ellipse ACR MASD ACR [feet] TVD North East MD TVD North East Bearing [feet] S f 7741.03 1002.14 -2382.24 861 7768.00 1002.14 -2382.24 861 ep [ eet] Status [°] [feet] _ 50.37 1999.60 1653.25 346.36 PASS 50.37 2003.92 1658.32 345.60 PASS 'WELLPATH COMPOSITION Offset Wellbore: KBU43-7X Offset Wellpath: MWD <0-8610> Start MD End MD Positional Uncertainty Model Log Name/Comment Wellbore [feet] [feet] 0.00 8610.00 NaviTrak (Standard) MWD<0-8610'> ICBU43-7X • OFFSET WELLPATH MD REFERENCE -Offset Wellbore: KBU43-7X Offset Wellpath: MWD <0-8610> MD Reference: Glacier#1 (RKB) ,Offset TVD & local coordinates use Reference Wellpath settings (See WELLPATHDATUMon page 1 of this report) • • _ -~;'~ Marathon Oil Company Well Name: KBU 24-7X _ Location: Kenai, Alaska. INTEGRATED FLUIDS ENGINEERING PRQ7ECT PLAN Prepared For: MARATHON OIL COMPANY Well KBU 24-7X Prepared by: Tony Tykalsky Reviewed by: Mark Fairbanks Presented to: Will Tank August 31, 2006 ~~ Kenai Peninsula, Alaska • ~~ Marathon Oil Company PO Box 190168 Anchorage, Alaska 99519 ATTN: Will Tank Will: • Marathon Oil Company Well Name: KBU 24-7X Location: Kenai, Alaska. Enclosed is the recommended drilling fluid program for the KBU 24-7X Well to be drilled this year. The following is a brief synopsis of the program. Overview: KBU 24-7X is a development well targeting the Beluga and Tyonek formations at the Kenai gas Field. FloPro fluid will be used for the intermediate and production intervals. After logging the production interval, the well will be completed with a 3-1/2" EXCAPE system cemented in place. Surface Interval: The surface interval will be drilled with the standard Gel/Gelex spud mud. No problems were noted in this interval while drilling the offset wells. Intermediate Interval: This interval will be drilled with a F1oPro NT fluid. After drilling out the surface cement, the well will be displaced to a standard FloPro KCl fluid. SafeCarb bridging material will be maintained according to the mud program to minimize losses to the formation. Fluid loss should be maintained @ 7 - 9 cc's API. NOTE: Both the sterling A8 and Upper Beluga sands are depleted and loss of whole mud anticipated. Production Interval: This. interval will be drilled with the same fluid that was used to drill the intermediate interval. Any further fluid dilutions will be made in order to keep the mud properties at the recommended specifications. Fluid loss should be maintained @ ~ - 9 cc's API for this interval. NOTE: Mud weights as high as 10 5 PPG may be needed to control gas at the bottom of this interval Completion: The cement will be displaced with 6% KCl brine for the completion phase of the program. Conqor 303A and Sodium Meta Bisulfate will be added to the drilling fluid that will be left between the 3-1/2" completion string and the 9-5/8" casing on the final circulation prior to cementing. Tony Tykalsky Project Engineer /M-I SWACO Reference Wells: KBU 22-6; KBU 11-8Y; KBU 41-6; KBU 11-7 NOTE: This program is provided as a wide only Well conditions will alwavs dictate fluid properties reauired. -' ~~ • • - '~ Marathon Oil Company =_~ Well Name: KBU 24-7X Location: Kenai, Alaska. .~~ ~~~ Our overall goal is no spills and no incidents while providing fluids and solids control services to Marathon Oil Company. :~Y Our goal far KBU 2~-7X is to remove drill solids from the mud system at a cost of Tess than $0.29 per pound. ~ ~ ~ ~- With the revised fluid formulation (utilizing the intermediate interval fluid for the production interval}, we expect to drill this well for a product cost of less than $27.60 per foot. With the- installation of the two MI-SWACO Mongoose shakers, we expect to limit '~ volume usage to less than 6150 barrels. ~~ • • -~ '~ Marathon Oil Company =_~J Well Name: KBU 24-7X Location: Kenai, Alaska. Interval Benchmarl~s and Targets Drilling Intervals Depth Benchmark 1 Benchmark 2 Benchmark 3 Benchmark 4 Interval ~ftj Fluid cost per foot Volume Usage Solids Removal 0 - 1600' < $4.83 ft < 1992 bbis 1600 - < $41.36 ft < 3422 bbis 6147' 6147 - 8527' < $16.64 ft < 635 bbls Total Avg. Max. Project < $27.60 ft <6150 bbls < $0.29 Ib No Spills from Targets for Centrifuge Van Drilling Operation Interval ~~ • ~~ • Marathon Oil Company Well Name: KBU 24-7X Location: Kenai, Alaska. Project Summary Casln~ Size Hole Size Casing Pr;,~~asr 1~2pt~ TYl;9 N)ud S t Maid Sum 1~ierval ~'~~ tin3 lu) lh) ys em solids Gt~ntTOi }Height iPRS) Days Iwlud Gast 13 3/8" 16" ~ 1600' 1479' Gel/Gelex Spud Mud 8.6 - 9.4 6 $12,708 ~~ Screens 140 - 175 t°? mesh ~' Desilter Centrifuge Van 9 5/8" 12-1/4" 6147' 5388' Flo-Pro w/SafeCarb 9.1 - 7 $193,852 Screens 175 - 200 < 9.5 mesh Desilter Centrifuge Van 3-1/2" 8-1/2" 8527' 7768' Flo-Pro w/SafeCarb 9.1 - 6 $44,574 Screens 200 - 230 10.5 mesh Desilter Centrifuge Van 3 1/2" 8-1/2" Completion 8527' 7768' 6% KCl 8.55 4 $10,275 - Utilize all solids control equipment to minimize the build up of drill solids in the system (if possible, centrifuge the surface mud during trips to reduce drill solids). - Condition the mud prior to running casing for all intervals. - Cost includes the use of 2% Lubetex in the intermediate and production intervals. ~~ • • ,,:,'~ Marathon Oil Company __ Well Name: KBU 24-7X Location: Kenai, Alaska. ~~~iatec~ Proc~uc~ Usage ~umn~ar~ PRODUCT Surface 16" Intermediate ,12-114" Production &1/Z" __ ~Completion ~ 3_l1~» ~ fTotal Usage s'" % of Total Cost" M-I Bar 0 342 254 0 596 1.85 M-I Gel 398 0 0 0 398 1.44 Gelex 25 0 0 0 25 0.17 Soda Ash 10 17 6 0 33 0.25 Caustic Soda 10 51 13 0 74 1.29 Conqor 404 0 10 4 0 14 7.28 Citric Acid 0 0 13 0 13 0.62 Sodium Meta Bisulfate 20 34 13 4 71 1.92 Bicarb 0 17 6 0 23 0.16 Conqor 303 0 0 0 4 4 0.80 F1oVis 0 240 38 0 278 23.7 Desco CF 10 0 0 0 10 0.16 Polypac UL 12 120 22 0 152 9.82 Asphasol 0 0 26 0 26 0.91 KCl 0 1437 267 42 1746 13.3 Safecarb 0 1711 190 0 1901 14.9 Lubetex 0 54 10 0 64 19.37 Steel Lube 0 0 4~' 0 4 1.51 Defoam X 0 8 4 0 12 0.46 Engineer Service 6 7 6 4 23 0 • • -~'~ Marathon Oil Company ~_ Well Name: KBU 24-7X Location: Kenai, Alaska. l'fset Nell Inform~..~lon Well Hole Size Depth PPG PV YP FL Comments KBU 22-6 16 182 8.7 14 35 14.6 Spud in, drill ahead 1550 9.2 14 22 6.4 Drlg ahead 1680 9.2 14 20 7.8 Drlg to casing point, run surface casing 12.25 3453 9.3 8 11 9.2 Drlg out, displace to FloPro, Run LOT, drlg ahead 4649 9.4 12 14 8.8 Drlg ahead 5338 9.2 14 18 5.8 Lost partial returns @ 4929' spot 50 bbl LCM pill; regain returns 6032 9.3 14 16 5.4 Lost partial returns @ 5840', add LCM to mud 6535 9.6 17 19 5.2 Reduce ppg, pump LCM pills, run casing, cement same 8.5 7095 9.85 17 21 5.8 Drlg out cmt, LOT, drlg ahead 8136 9.85 17 23 5 Drlg ahead, short trip OK, drlg ahead 8855 10.3 19 21 5.2 Drlg to csg point, short trip, some tight spots, POH for logs 8855 10.45 19 22 5.8 Logging well 8855 10.65 19 20 5.2 RIH, weight up to 10.6 PPG, condition mud, POH 8855 10.65 19 19 5.8 Run excape string, cement same, no losses, disp to brine KBU 11-8Y 16 498 8.65 11 16 17 Spud in, drill ahead 1550 9 9 16 8.8 Drlg to csg point, short trip OK, POH 1550 9.1 9 19 10.6 Run & cement surface casing 12.25 3774 9.1 9 17 7 Drlg out, disp to FloPro, drtg ahead 5033 9.3 13 15 7.8 Drlg to 3884', short trip OK, drig ahead 5820 9.45 17 23 5.8 Drlg to csg point, add 3% Lubetex (torque), POH 5820 9.55 19 22 5.8 Log well, wiper trip, 5820 9.7 20 26 5.4 Run csg, cement same, lost partial returns 8.5 5840 9.3 14 18 6.2 Drlg out, LOT, drlg ahead, add EMI-920 and Lubetex for torque 7574 9.75 17 27 5 Drlg ahead 8220 10 16 27 5.4 Drlg to TD, increase PPG to 10.0 for gas 8220 10.5 17 28 5.8 POH, wireline well, increase PPG to 10.5 for gas 8220 10.8 17 26 5.2 Run and cement excape string, disp to brine N r LiL • ~~ • Marathon Oil Company Well Name: KBU 24-7X Location: Kenai, Alaska. 0~~set well Infa~°mation Well Hole Size Depth PPG PV YP FL Comments KBU 41-6 16 1616 9.05 18 24 9.6 Spud in, drill ahead 1862 9.3 16 17 7.8 Drlg to casing point, run surface casing 1862 9.3 12 14 7.2 Cement surface casing 12.25 3431 9.3 12 16 8 Drtg out, displace to FloPro, Run LOT, drlg ahead 5044 9.2 13 17 8.4 Drlg to 4206', wiper trip OK, drlg ahead, pump sweeps every 500 ft 6289 9.2 13 19 7.4 Drlg to 5278' lost returns, stopped with LCM, drlg ahead 7105 9.3 14 23 7.6 Drlg to 6897', wiper trip OK, drlg ahead 7220 9.3 11 23 8.6 Drlg to casing point, wiper trip Ok, POH to run casing 7220 9.8 12 18 8.4 Run 9-5/8" csg, cement same, bump plug 8.5 7374 9 12 17 6.4 Drlg out, disp to new fluid, LOT = 16.0 PPG, drlg ahead 7735 9.2 10 16 5.3 Trip for core #1 7776 9.3 12 13 5.1 Core #1 7835 9.5 14 14 5.2 Core #2 8445 9.7 14 16 5 Drlg to core point 8535 9.95 14 19 5 Core #3 8807 10.1 16 20 4.6 Drlg ahead, increase Lubetex to 4% 9733 10.3 16 19 4.6 TD well, 9733 10.6 15 18 4.4 Wiper trip, inc PPG to 10.6 for gas, POH for Togs 9733 10.8 15 20 5.2 Log well, wiper trip, treat for running coals, POH 9733 10.8 14 21 5.6 Run and cement excape string, disp to brine KBU 11-7 16 187 8.7 7 28 16 Clean out conductor, spud in 1477 9 8 23 9.2 Drlg ahead 1725 9.2 9 20 6.2 Drlg to casing point, run surface casing 1725 9.3 8 22 7.4 Cement casing, no losses, BOP's 12.25 2822 9.4 8 18 7.2 Drlg out, displace to FloPro, Run LOT = 15.2 PPG, drlg ahead 4460 9.1 11 18 7.8 Drlg ahead with miminal losses 5080 9.3 11 15 8.6 Short trip, OK, drlg to core point @ 5080' 5160 9.4 12 20 7.5 Core #1 5249 9.3 15 20 6.7 Core #2 5449. 9.4 15 12 7 Open core runs to 12-1/4", drlg ahead 5585 9.6 17 23 7.3 Logging 5585 9.5 16 24 7 Fish for RFT tool parts 5585 9.5 17 21 7.4 Recover fish, log with RFT tools 5585 9.5 17 22 8.2 Run & cmt 9-5/8" casing 8.5 5869 9.5 22 26 6.8 Drlg out, LOT = 15.2 PPG, drlg ahead 6940 9.9 21 23 5.8 Drlg ahead, weight up for gas, wiper trip, backreaming needed 7770 10.3 26 27 6 RIH, drlg ahead, weight up for stability, add asphasol for coals 7900 10.5 27 29 5.8 TD well, wiper trip, extensive backreaming, POH for logs 7900 10.5 23 23 5.8 Log well on drtg pipe 7900 10.6 26 30 5.1 Cleanout run prior to compleiton. 7900 10.65 26 28 5.2 Run and cement excape string, disp to brine ~. L 7 ~~ • ~, '~ Marathon Oil Company __ Well Name: KBU 24-7X Location: Kenai, Alaska. Plans & Procedures ~ COMMUNICATION -The Field Mud Engineer will communicate daily with the In-Town Project Engineer. The Project Engineer will then communicate daily with the rig Drilling Engineer. Communications should be about, but not limited to, fluid properties, hole difficulties, possible changes to the mud. program, and proposals to use products not included in the mud program. ~ FLUID LOSS CONTROL - In the intermediate interval the API fluid loss will be maintained in the 7 - 9 cc's range. In the production interval the API fluid will be maintained between 6 - 8 cc's at all times. In addition to sufficient fluid loss agent additions, this may require adequate dilution of the mud system in order to keep reactive drill solids to a minimum . ~ LSRV - When drilling with a FloPro fluid, the low shear rate rheology should be maintained at approximately 30,000 cps. In addition to adequate additions of FloVis Plus, this will also require keeping reactive drill solids to a minimum in order to reduce or eliminate false and unwanted high LSRV. ~ FORMATION LOSSES -Insure proper bridging material is maintained in the mud system while drilling the depleted Sterling and Upper Beluga sands. Be prepared to spot LCM pill across the depleted sands to control fluid losses. ~ DRILL SOLIDS -MBT -The MBT should be kept at less than 7.5 ppb in the intermediate and production intervals through aggressive use of solids equipment and dilution as needed. ~ MIXING CONDITIONS -Whenever possible all treatments to the mud system should be made as pre-mix additions. Polymers and KCI should first be mixed in fresh water in that order and then blended into the active system over one or two circulations as needed. ~ CORROSION - Congor 404 additions should be made daily when drilling with FloPro fluid in order to maintain a Congor 404 concentration of +/- 2000 PPM. ~ CORRISION - Sodium Meta Bisulfate additions should be made daily as needed with any fluid in the hole. Maintain a DO reading of less than 3 ppm ~ SOLIDS VAN USAGE -The Solids Van should be used whenever drill solids become un- acceptably high and reduction of drill solids in the mud can be more economically done with centrifuging and dilution then just with dumping and diluting. The weight of the drilling fluid alone should not be the determining condition for when to use the Solids Van. ~ WEIGHTING UP - .All increases in mud weight should be accomplished with barite additions. In the production interval, insure chloride concentration is maintained at 30,000 to minimize the need for barite additions. • '~ • Marathon Oil Company Well Name: KBU 24-7X Location: Kenai, Alaska. interval summary -1 ~" bole o - i6oo~ Drilling Fluid System GeUGelex Spud Mud ~~, Products MI Gel / Gelex /Soda Ash /Caustic Soda / MI Bar / PolyPac Supreme UL Solids Conn-®1 Shale Shakers / Desilter /Centrifuge Van Recommended shaker screens - 140 - 175 mesh Potential Problems Lost circulation, drill solids build-up, seawater influx. nterval Drilling Fluid Properties Depth Mud Funnel Yield API Drill Interval Weight Viscosity Paint Fluid Loss pII Solids (ft) (ppg) (sec./qt} (lb./lU0ft2) {mU30min) (%} 0 - 1600' 8.6 - 9.4 60 - 100 25 - 35 NC - 12 +/- 9.5 < 7% - Treat drill water with Soda Ash to reduce hardness. - Build spud mud with 20 - 25 PPB M-I Gel to +/- 100 seconds/quart funnel viscosity. - Lower funnel viscosity to +/- 75 after gravel zone has been drilled. - Add Gelex as needed to maintain sufficient viscosity for hole cleaning. - Increase funnel viscosity if fill on connections begins to occur. - Reduce fluid loss with additions of Polypac Supreme UL prior to running surface casing. - Add Sodium Meta Bisulfate to maintain a DO of < 3 PPM. - Condition mud prior to cementing casing to reduce yield point and gel strengths. - Estimated volume usage for interval - 1992 barrels. - Estimated haul off volume - 318 barrels. ~~ C, ~~ • Marathon Oil Company Well Name: KBU 24-7X Location: Kenai, Alaska. Interval ~ummar~ -12-1~4" hole 1b00 - b147' Drilling Fluid Systern FloPro NT Key Products F1oVis / PolyPac Supreme UL / KCl / SafeCarb 10 & 40 / MI Bar / Caustic Soda / Congor 404 /Sodium Meta Bisulfate / Lubetex / As hasol Su reme / Kla and Solids Control Shale Shakers / Desilter /Centrifuge Van Recommended shaker screens - 175 - 200 mesh Potential Problems Lost circulation, coal sloughing, drill solids build-up, tight hole onditions nterwal Drilling Fluid Properties Depth Mud Plastic LSRV API Drill Interval Weight Viscosity 1 min Fluid Loss MBT Solids (ft) (ppg) (cp.j {cps) (mU30min) (°/a) 1600 - 6147' 9.1- < 9.5 8 - 12 30,000+ 7 - 9 < 7.5 < 7.5% - Use one rig pit to drill out surface casing. In other rig pits, build new F1oPro fluid using. the enclosed fluid formula. - After drilling out surface casing, displace hole to F1oPro fluid prior to running leak off test - If running coals become a problem, treat with a 2 PPB addition of Asphasol D. - If torque or sliding problems occur, add 3% Lubetex. - NOTE: Watch for losses to the formation in the Sterlin A8 Sand +/- 4326' MD - Estimated volume usage for interval - 3422 barrels. - Estimated haul off volume - 3977barrels. - Condition mud prior to running 9-5/8" casing. NOTE: Follow BOSCO guidelines when adding biocide, oxygen scavenger and corrosion inhibitor. S~ • • LL '~ Marathon Oil Company __~~ Well Name: KBU 24-7X Location: Kenai, Alaska. FI~~d Formula ~ 12-1/4" hale 12-1/4" Interval from 1600 - 6147 ~.,.,~~• Descri tion ' KBU 24-7X Mud Wei ht 9.1 - 9.4 Preh drated Gel No Wei ht Material;Code MI Bar Preh drated Gel Conc. Wei ht Material SG 4.2 KCI Wt% 6 Output - 1 bb l Order of Products Concentration Volume Product .Addition Field, Ib Lab, m Field, bbl.. Lab, ml Usa e 1 Water 298.70 298.70 0.853 298.70 2 Soda Ash 0.25 0.25 0.000 0.10 Reduce Hardness 3 Flovis 2.00 2.00 0.004 1.33 Viscosit 4 Pol ac Su reme UL 2.00 2.00 0.004 1.25 Fluid Loss Control 5 Caustic Soda 0.50 0.50 0.001 0.23 H Control 6 Potassium Chloride 19.07 19.07 0.023 7.98 Inhibition 7A SafeCarb 10 10.00 10.00 0.010 3.60 Brid in A ent 7B SafeCarb 40 10.00 10.00 0.010 3.60 Brid in A ent 7C SafeCarb 250 10.00 10.00 0.010 3.60 Brid in A ent 8 Sodium Meta Bisulfate 0.50 0.50 0.000 0.20 Ox en Scaven er 9 As hasol Su reme 2.00 2.00 0.006 2.08 Wellbore Stabilit If bit ballin becomes a roblem, add the followin 10 D-D CWT 1.00 1.00 0.003 1.00 Reduce BHA Ballin If for ue becomes a roblem, or slidin i s difficult, add u to 2% of the followin 11 Lubetex 14.00 14.00 0.041 14.43 Lubricit Total 399 399 1.000 350 Calculated Mud Wei ht 9.1 Estimated Volume Usa a 3422 Barrels Total Chloride 29600 s~ • • Marathon Oil Company Well Name: KBU 24-7X -~ '~ Location: Kenai, Alaska. interval umm~ry - 81/2" dole 6147 - 8527' Drilling Fluid System F1oPro NT Ivey Products F1oVis / Polypac Supreme UL / KCl / SafeCarb 10 & 401 MI Bar / Caustic Soda / Conqor 404 /Asphasol Supreme / Lubetex / Klagard Solids Control Shale Shakers / Desilter /Centrifuge Van Recommended shaker screens - 210 - 230 mesh Potential Problems Lost circulation, coal sloughing, gas kick, tight hole conditions nterval Drilling Fluid Pro~elrties Depth Mud Plastic LSRV API Drill Interval Weight Viscosity 1 min Fluid Loss MBT Solids {ft} (ppg) {cp.) (cps) {mU30min) {°/©) 6147 - 8527' 9.1 - 10.5* 10 - 14 30,000+ 6 - $ < 7.5 +/- 5% - Pre-treat drilling fluid with Bicarb and/or citric acid prior to drilling cement.. Aggressively treat out cement contamination as soon as feasible. Build additional dilution volume to maintain proper specifications. - If running coals become a problem, treat with a 2 PPB addition of Asphasol Supreme. - Estimated additional volume for interval - 635 barrels. - Estimated haul off volume - 2267 barrels. - NOTE: Gas at the bottom of this interval (+/- 8527' MD) may reauire mud weights as high as 10 5 PPG to control. - Condition mud prior to running 3-1/2" casing. NOTE:. Follow BOSCO guidelines when adding biocide, oxygen scavenger and corrosion inhibitor. 0 ~~ Marathon Oil Company Well Name: KBU 24-7X Location: Kenai, Alaska. Dilution ~'ormul~ - 5-1~2" hole 8-1/2" Interval from 6147 - 8527 Descri ton Mud Wei ht Wei ht Material Gode Wei ht Material SG KBU 24-7X 9.1 - 10.5 MI Bar 4.2 In ut Preh drated Gel Preh drated Gel Conc. KCI Wt% Out ut - 1 bbl No 6 Order of Products Concentration Volume Product Addition Field, Ib Lab, m Field, bbl Lab, mt Usa e 1 Water 325.19 325.19 0.929 325.19 2 Soda Ash 0.25 0.25 0.000 0.10 Reduce Hardness 3 FloVis Plus 2.00 2.00 0.005 1.34 Viscosi 4 Pol ac Su reme UL 2.00 2.00 0.004 1.34 Fluid Loss Control 5a SafeCarb 10 10.00 10.00 0.012 3.78 Brid in A ent 5b SafeCarb 40 10.00 10.00 0.012 3.78 Brid in A ent 6 Potassium Chloride 20.76 20.76 0.025 8.68 Inhibition 7 CONQOR 404 2.00 2.00 0.004 1.43 Corrosion Control 8 Caustic Soda 0.50 0.50 0.001 0.23 H Control 9 Sodium Meta Bisulfate 0.50 0.25 0.001 0.25 Ox en Scaven er If slidin or hi h for ue becomes a roblem add 1 - 2% of the followin 10 Lubetex 7.00 7.00 .0.021 7.00 Lubricit If sloughing coals become a roblem add 2 - 4 b of the followin 11 As hasol Su reme 2.00 2.00 0.004 1.33 Wellbore Stabilit Mix fluid in the order listed above. '.Total 380.1 380.1 Estimated Volume Usa a 635 Barrels Calculated Mud Wei. Total. Chloride ht 9.050 29600 • • _~'~ Marathon Oil Company - Well Name: KBU 24-7X _ Location: Kenai, Alaska. Internal Summary -Completion Procedures Corrosion Control Additive in Casing x Tubing Annulus Well KBU 24-7X Volumes: Tubing VOlume 3-112~~ Tubing 74.18 barrels 3.50 x 2.992 x 8527 ft Annular VOlume Casing x Tubing 377.00 barrels Open Hole x Tbg 120.23 barrels Total Annular Volume 497.24 Tubing Volume 74.18 Total Hole Volume 571.az 9.625 x 8.681 @ 6147 ft MD 8.500 x 3.50 @ 8527 ft MD Treatment Procedures. 1. After the 3-1 /2" tubing is run and the drilling fluid is circulated and conditioned for the cement job, circulate an additional 380 barrels of drilling fluid. 2. Add 1 drum of Conqor 303A and 1 sack of Sodium Meta Bisulfate for each 95 barrels of drilling fluid pumped (4 drums 8 4 sacks total) 3. After the 380 barrels of drilling fluid with corrosion inhibitors have been pumped downhole, begin the cement job. 4. This procedure will place corrosion control in the 3-1 /2" x 9-5/8" annulus. ~'~ rte] T-!•~ • • _.;'~ Marathon Oil Company __ Well Name: KBU 24-7X Location: Kenai, Alaska. HANDLING OF DRILLING FLUID PRODUCTS HEALTH AND SAFETY 1. Drilling crews should be instructed in the proper procedures for handling fluid products. 2. Personal Protective Equipment (PPE) charts should be posted in the pit room, the mud lab, and the office of the Drilling Forman. 3. PPE must be in good working order and be utilized as recommended by the PPE charts. 4. Product additions should be made with the intent to use complete unit amounts of products (sacks, drums, cans) as much as possible in order to minimize inventory of partial units. 5. Insure all MSDS sheets are up to date and readily available for workers to access for information. ENVIRONMENTAL 1. Insure that all product stored outside is protected from the weather. 2. Do not store partial units (sacks, etc) outside if possible: 3. Properly secure all products for shipment between job sites. 4. When transferring fluid and or cuttings from the rig to trucks, insure all hoses are properly secured. 5. When utilizing the centrifuge solids van, insure all hoses and connections between the van and the rig are secure. ~~ • ~~ • Marathon Oil Company Well Name: KBU 24-7X Location: Kenai, Alaska. Product Health and Safety Reference HMIS HAZARD RATiN~C Product Function Health Flammabilit Reactivit PPE ASPHASOL SUPREME Shale Inhibitor 1 1 0 J BORAX Inorganic Borate 1 0 0 E CALCIUM CHLORIDE Densifier 1 0 0 E CIRTIC ACID pH Adjuster 1 0 0 E CONCOR 303A Corrosion Inhibitor 2 1 0 E CONCOR 404 Corrosion Inhibitor 1 1 0 J D-D CWT Fluids Additive 2 1 0 J DEFOAM X Defoamer 1 1 0 J DESCO CF Dispersant 1 1 0 E DUAL-FLO Fluids loss reducer 1 1 0 E FORM-A-SET AK Loss circulation Material 1 1 0 E FORM-A-SET XL Fluids Additive 2 1 0 E FORM-A-SET RET Loss circulation Material 1 1 0 J HEC-10 Viscosifier 1 1 0 E FLO-VIS PLUS Viscosifier 1 1 0 E STEEL LOBE EP Oil well additive Lubricant 1 2 0 J SODIUM BICARB Alkalinity control 1 0 0 E SODIUM META Oxygen Scavenger 1 1 0 J SPERSENE CF Dispersant 1 1 0 E GELEX Bentonite Extender 1 0 0 E G-SEAL Graphite LCM 1 1 0 E KLAGARD Shale Control 0 1 0 J LUBETEX Lubricant 1 1 0 J MI BAR Weighting Agent *1 1 0 E MI GEL Viscosifiet *1 1 0 E MI SEAL F, M, C LCM *1 1 0 E ~~ • ": 1~ .] Marathon Oil Company Well Name: KBU 24-7X Location: Kenai, Alaska. MIX II F, M, C LCM *1 1 0 E NUT PLUG F, M, C LCM *1 1 0 E POLYPAC'S Fluid Loss Control *1 1 0 E Potassium Chloride Shale Inhibitor, Densifier 1 0 0 E SafeCarbs (all) Bridging * weighting agent *1 Q 0 E SAFEKLEEN Surfactant 1 1 0 J SALT Densifier 1 0 0 E SAPP Dispersant *1 0 0 E SODA ASH Calcium precipitation 1 1 0 E DRILLZONE ROP Enhancer 1 1 0 J SCREENKLEEN Dispersant/Emulsifyer 1 1 0 J BIOBAN BP-PLUS Biocide 2 1 1 J GREENCIDE 25G Biocide 3 0 0 J CAUSTIC POTASH Alkalinity Control 3 0 1 X CAUSTIC SODA Alkalinity Control 3 0 1 X HAZARDOUS MATERIALS IDENTIFICATION SYSTEM (HMIS) HAZARD RATINGS 4 -Severe hazard 3 -Serious hazard 2 -Moderate hazazd 1 -Slight hazard 0 -Minimal hazard * An asterisk next to the health rating indicates that a chronic hazard is associated with the material. HMIS PERSONAL PROTECTIVE EQUIPivIENT INDEX A -Safety Glasses B -Safety Glasses, Gloves C -Safety Glasses, Gloves, Synthetic Apron D -Face Shield, Gloves, Synthetic Apron E -Safety Glasses, Gloves, Dust Respirator F -Safety Glasses, Gloves, Synthetic Apron, Dust Respirator G -Safety Glasses, Gloves, Vapor Respirator H -Splash Goggles, Gloves, Synthetic Apron, Vapor Respirator I -Safety Glasses, Gloves, Dust and Vapor Respirator J -Splash Goggles, Gloves, Synthetic Apron, Dust and Vapor Respirator K -Air Line Hood or Mask, Gloves, Full Suit, Boots X -Consult your supervisor for special handling directions 1~ • ~~ ~olltd.Cts • Marathon Oil Company Well Name: KBU 24-7X Location: Kenai, Alaska. Contact Title a-mail Work Cellular Pete Berga Drilling pkberga@marathonoil.com 907 565-3032 907 231-0663 Marathon Superintendent Will Tank Drilling Engineer wjtank@marathonoil.com 713 296-3273 713 203-8398 Marathon Tony Tykalsky Project Engineer ttykalsky@miswaco.com 907 274-5011 907 227-2412 MI SWACO Bob Myles Warehouse Manager rmyles@miswaco.com 907 776-8680 907 252-4218 MI SWACO Michael Barry Senior Field barry.michael@att.net 907 260-4666 907590-3636 MI SWACO Engineer (home) Locke Rooney Field Engineer rooneyl@alaska.net 907 235-0598 907 590-3636 MI SWACO (home) John Nicholson /Dan Drilling Foremen alaska_drilling 907 283-1312 Byrd @marathonoil.com Marathon Responsibilities - MI Project Engineer and will coordinate daily between the Marathon office, rig, warehouse, and the M-I field engineers. - Well progress will be monitored to look for any changes, which will improve the efficiency of the operation or avert trouble. - Field Engineers will monitor and supervise product inventory to include re-palletizing any products for shipment to other locations at the end of the well. - Field Engineers will communicate with office personnel (Marathon & MI SWACO) for approval of any changes in the mud program (including introduction of new products). - Field Engineers will produce a recap at the end of the well based on daily activities. Recap should include any lessons learned that may be used to provide better service on future wells. Lessons learned can include changes in procedures, product additions, equipment usage, and/or utilization of any third party service. ~~ • • _~'~ Marathon Oil Company Well Name: KBU 24-7X - Location: Kenai, Alaska. INTEGRATED FLUIDS ENGINEERING PRpJECT PLAN Prepared For: MARATHON OIL COMPANY Well KBU 24-7X Prepared by: Tony Tykalsky Reviewed by: Mark Fairbanks Presented to: Will Tank August 31, 2006 ~~ Kenai Peninsula, Alaska • ~~~ ~'~ Marathon Oil Company PO Box 190168 Anchorage, Alaska 99519 ATTN: Will Tank Will: • Marathon Oil Company Well Name: KBU 24-7X Location: Kenai, Alaska. Enclosed is the recommended drilling fluid program for the KBU 24-7X Well to be drilled this year. The following is a brief synopsis of the program. Overview: KBU 24-7X is a development well targeting the Beluga and Tyonek formations at the Kenai gas Field. F1oPro fluid will be used for the intermediate and production intervals. After logging the production interval, the well will be completed with a 3-1/2" EXCAPE system cemented in place. Surface Interval: The surface interval will be drilled with the standard GeUGelex spud mud. No problems were noted in this interval while drilling the offset wells. Intermediate Interval: This interval will be drilled with a F1oPro NT fluid. After drilling out the surface cement, the well will be displaced to a standard F1oPro KCl fluid. SafeCarb bridging material will be maintained according to the mud program to minimize losses to the formation. Fluid loss should be maintained @ 7 - 9 cc's API. NOTE: Both the sterling A8 and Upper Beluga sands are depleted and loss of whole mud anticipated. Production Interval: This interval will be drilled with the same fluid that was used to drill the intermediate interval. Any further fluid dilutions will be made in order to keep the mud properties at the recommended specifications. Fluid loss should be maintained @ 7 - 9 cc's API for this interval. NOTE: Mud weights as high as 10.5 PPG may be needed to control aas at the bottom of this interval Completion: The cement will be displaced with 6% KCl brine for the completion phase of the program. Conqor 303A and Sodium Meta Bisulfate will be added to the drilling fluid that will be left between the 3-1/2" completion string and the 9-5/8" casing on the final circulation prior to cementing. Tony Tykalsky Project Engineer /M-I SWACO Reference Wells: KBU 22-6; KBU 11-8Y; KBU 41-6; KBU 11-7 NOTE: This program is urovided as a wide only Well conditions will alwavs dictate fluid properties required. f • • Marathon Oil Company __ `'~ Well Name: KBU 24-7X Location: Kenai, Alaska. _ Our overall goal is no spills and no incidents while providing fluids and solids control services to Marathon Oil Company. ~' Our goal for KBU 24-7X is to remove drill solids from the mud system at a cost of less then $0.26 per pound. a ~ With the revised fluid formulation (utilizing the intermediate interval fluid far the production Interval', we expect to drill this well for a product cost of less than $27.60 per. foot. With the installation of the two MI-SWACO Mongoose shakers, we expect to limit volume usage to less than 6150 barrels. .~ ~~ • '~ • Marathon Oil Company Well Name: KBU 24-7X Location: Kenai, Alaska. In~er~~.~ Benchmarks end ~'argets Drilling Intervals Depth Benchmark 1 Benchmark 2 Benchmark 3 Benchmark 4 Interval (ft} Fluid cost per foot Volume Usage Solids Removal 0 - 1600' < $4.83 ft < 1992 bbls 1600 - < $41.36 ft < 3422 bbls 6147' 6147 - 8527' < $16.64 ft < 635 bbls Total Avg. Max. Project Targets for < $27.60 ft <6150 bbls < $0.29 Ib No Spills from Drilling Centrifuge Van Interval Operation t I ~ ^~' • • Marathon Oil Company Well Name: I{BU 24-7X Location: Kenai, Alaska. Project Summary Casing Size ~~iE Size ~~;~~ Prog~ar; ~~~ ~ ~~~ ~~~ ~~~ ~~~~~~~ S3~s3e~ 1Neiyht Dais ~~I Ct>si 13 3/8" 16" _'~~. 1600' 1479' Gel/Gelex Spud Mud 8.6 - 9.4 6 $12,708 - ~ Screens 140 - 175 mesh Desilter 3 ~ Centrifuge Van 9 5/8" 12-1/4" 6147' 5388' Flo-Pro w/SafeCarb 9.1 - 7 $193,852 Screens 175 - 200 < 9.5 mesh Desilter Centrifuge Van 3-1/2" 8-1/2" = 8527' 7768' Flo-Pro ` F w/SafeCarb 9.1 - 6 $44,574 Screens 200 - 230 10.5 mesh Desilter Centrifuge Van 3 1/2" 8-1/2" Completion 8527' 7768' 6% KCl 8.55 4 $10,275 - Utilize all solids control equipment to minimize the build up of drill solids in the system (if possible, centrifuge the surface mud during trips to reduce drill solids). - Condition the mud prior to running casing for all intervals. - Cost includes the use of 2% Lubetex in the intermediate and production intervals. ~~ • ~~ • Marathon Oil Company Well Name: KBU 24-7X Location: Kenai, Alaska. ~s~r~~..~~ Product ~sagc ummar~ PRf3DUCT Surface l.6" Interipir~'diate 12-114" ~ Production ~ S-1/2" ~ ~Co~pipletton ~ -•:~-1~~2" . ~ -~ ~ ~® °f Total Usages -Total host M-I Bar 0 342 254 0 596 1.85 M-I Gel 398 0 0 0 398 1.44 Gelex 25 0 0 0 25 0.17 Soda Ash 10 17 6 0 33 0.25 Caustic Soda 10 51 13 0 74 1.29 Conqor 404 0 10 4 0 14 7.28 Citric Acid 0 0 13 0 13 0.62 Sodium Meta Bisulfate 20 34 13 4 71 1.92 Bicarb 0 17 6 0 23 0..16 Conqor 303 0 0 0 4 4 0.80 F1oVis 0 240 38 0 278 23,7 Desco CF 10 0 0 0 10 0.16 Polypac UL 12 120 22 0 152 9.82 Asphasol 0 0 26 0 26 0.91 KCl 0 1437 267 42 1746 13.3 Safecarb 0 1711 190 0 1901 14.9 Lubetex 0 54 10 0 64 19.37 Steel Lube 0 0 4.' 0 4 1.51 Defoam X 0 8 4 0 12 0.46 Engineer Service 6 7 6 4 23 • • '~ Marathon Oil Company ~_ Well Name: KBU 24-7X Location: Kenai, Alaska. ~~set well Information Well Hole Size Depth PPG PV YP FL Comments KBU 22-6 16 182 8.7 14 35 14.6 Spud in, drill ahead 1550 9.2 14 22 6.4 Drlg ahead 1680 9.2 14 20 7.8 Drlg to casing point, run surface casing 12.25 3453 9.3 8 11 9.2 Drlg out, displace to FloPro, Run LOT, drlg ahead 4649 9.4 12 14 8.8 Drlg ahead 5338 9.2 14 98 5.8 Lost partial returns @ 4929' spot 50 bbl LCM pill, regain returns 6032 9.3 14 16 5.4 Lost partial returns @ 5840', add LCM to mud 6535 9.6 17 19 5.2 Reduce ppg, pump LCM pills, run casing, cement same 8.5 7095 9.85 17 21 5.8 Drlg out cmt, LOT, drlg ahead 8136 9.85 17 23 5 Drlg ahead, short trip OK, drlg ahead 8855 10.3 19 21 5.2 Drlg to csg point, short trip, some tight spots, POH for logs 8855 10.45 19 22 5.8 Logging well 8855 10.65 19 20 5.2 RIH, weight up to 10.6 PPG, condition mud, POH 8855 10.65 19 19 5.8 Run excape string, cement same, no losses, disp to brine KBU 11-8Y 16 498 8.65 11 16 17 Spud in, drill ahead 1550 9 9 16 8.8 Drlg to csg point, short trip OK, POH 1550 9.1 9 19 10.6 Run & cement surface casing 12.25 3774 9.1 9 17 7 Drlg out, disp to FloPro, drlg ahead 5033 9.3 13 15 7.8 Drlg to 3884', short trip OK, drig ahead 5820 9.45 17 23 5.8 Drig to csg point, add 3% Lubetex (torque), POH 5820 9.55 19 22 5.8 Log well, wiper trip, 5820 9.7 20 26 5.4 Run csg, cement same, lost partial returns 8.5 5840 9.3 14 18 6.2 Drlg out, LOT, drlg ahead, add EMI-920 and Lubetex for torque 7574 9.75 17 27 5 Drlg ahead 8220 10 16 27 5.4 Drig to TD, increase PPG to 10.0 for gas 8220 10.5 17 28 5.8 POH, wireline well, increase PPG to 10.5 for gas 8220 10.8 17 26 5.2 Run and cement excape string, disp to brine '~ ~~ Marathon Oil Company Well Name: KBU 24-7X Location: Kenai, Alaska. ~~~et well Information Well Hole Size Depth PPG PV YP FL Comments KBU 41-6 16 1616 9.05 18 24 9.6 Spud in, drill ahead 1862 9.3 16 17 7.8 Drlg to casing point, run surface casing 1862 9.3 12 14 7.2 Cement surface casing 12.25 3431 9.3 12 16 8 Drlg out, displace to FloPro, Run LOT, drlg ahead 5044 9.2 13 17 8.4 Drlg to 4206', wiper trip OK, drlg ahead, pump sweeps every 500 ft 6289 9.2 13 19 7.4 Drlg to 5278' lost returns, stopped with LCM, drlg ahead 7105 9.3 14 23 7.6 Drlg to 6897', wiper trip OK, drlg ahead 7220 9.3 11 23 8.6 Drlg to casing point, wiper trip Ok, POH to runcasing 7220 9.8 12 18 8.4 Run 9-5/8" csg, cement same, bump plug 8.5 7374 9 12 17 6.4 Drlg out, disp to new fluid, LOT = 16.0 PPG, drlg ahead 7735 9.2 10 16 5.3 Trip for core #1 7776 9.3 12 13 5.1 Core #1 7835 9.5 14 14 5.2 Core #2 8445 9.7 14 16 5 Drlg to core point 8535 9.95 14 19 5 Core #3 8807 10.1 16 20 4.6 Drlg ahead, increase Lubetex to 4% 9733 10.3 16 19 4.6 TD well, 9733 10.6 15 18 4.4 Wiper trip, inc PPG to 10.6 for gas, POH for logs 9733 10.8 15 20 5.2 Log well, wiper trip, treat for running coals, POH 9733 10.8 14 21 5.6 Run and cement excape string, disp to brine KBU 11-7 16 187 8.7 7 28 16 Clean out conductor, spud in 1477 9 8 23 9.2 Drlg ahead 1725 9.2 9 20 6.2 Drlg to casing point, run surface casing 1725 9.3 8 22 7.4 Cement casing, no losses, BOP's 12.25 2822 9.4 8 18 7.2 Drlg out, displace to FloPro, Run LOT = 15.2 PPG, drlg ahead 4460 9.1 11 18 7.8 Drlg ahead with miminal losses 5080 9.3 11 15 8.6 Short trip, OK, drlg to core point @ 5080' 5160 .9.4 12 20 7.5 Core #1 5249 9.3 15 20 6.7 Core #2 5449 9.4 15 12 7 Open core runs to 12-1/4", drlg ahead 5585 9.6 17 23 7.3 Logging 5585 9.5 16 24 7 Fish for RFT tool parts 5585 9.5 17 21 7.4 Recover fish, log with RFT tools 5585 9.5 17 22 8.2 Run & cmt 9-5/8" casing 8.5 5869 9.5 22 26 6.8 Drlg out, LOT = 15.2 PPG, drlg ahead 6940 9.9 21 23 5.8 Drlg ahead, weight up for gas, wiper trip, backreaming needed 7770 10.3 26 27 6 RIH, drlg ahead, weight up for stability, add asphasol for coals 7900 10.5 27 29 5.8 TD well, wiper trip, extensive backreaming, POH for logs 7900 10.5 23 23 5.8 Log well on drlg pipe 7900 10.6 26 30 5.1 Cleanout run prior to compleiton. 7900 10.65 26 28 5.2 Run and cement excape string, disp to brine I ` ~ • • '~ Marathon Oil Company ~_ Well Name: KBU 24-7X Location: Kenai, Alaska. Flans & ~'roce~ures ~ COMMUNICATION -The Field Mud Engineer will communicate daily with .the In-Town Project Engineer. The Project Engineer will then communicate daily with the rig Drilling Engineer. Communications should be about, but not limited to, fluid properties, hole difficulties, possible changes to the mud program, and proposals to use products not included in the mud program. ~ FLUID LOSS CONTROL - In the intermediate interval the API fluid loss will be maintained in the 7 - 9 cc's range. In the production interval the API fluid will be maintained between 6 - 8 cc's at all times. In addition to sufficient fluid loss agent additions, this may require adequate dilution of the mud system in order to keep reactive drill solids to a minimum . ~ LSRV - When drilling with a FloPro fluid, the low shear rate rheology should be maintained at approximately 30,000 cps. In addition to adequate additions of FloVis Plus, this will also require keeping reactive drill solids to a minimum in order to reduce or eliminate false and unwanted high LSRV. ~ FORMATION LOSSES -Insure proper bridging material is maintained in the mud system while drilling the depleted Sterling and Upper Beluga sands. Be prepared to spot LCM pill across the depleted sands to control fluid losses. ~ DRILL SOLIDS -MBT -The MBT should be kept at less than 7.5 ppb in the intermediate and production intervals through aggressive use of solids equipment and dilution as needed. ~ MIXING CONDITIONS -Whenever possible all treatments to the mud system should be made as pre-mix additions. Polymers and KCI should first be mixed in fresh water in that order and then blended into the active system over one or two circulations as needed. ~ CORROSION -Conqor 404 additions should be made daily when drilling with FloPro fluid in order to maintain a Conqor 404 concentration of +/- 2000 PPM. ~ CORRISION - Sodium Meta Bisulfate additions should be made daily as needed with any fluid in the hole. Maintain a DO reading of less than 3 ppm ~ SOLIDS VAN USAGE -The Solids Van should be used whenever drill solids become un- acceptably high and reduction of drill solids in the mud can be more economically done with centrifuging and dilution then just with dumping and diluting. The weight of the drilling fluid alone should -not be the determining condition for when to use the Solids Van. ~ WEIGHTING UP -All increases in mud weight should be accomplished with barite additions. In the production interval, insure chloride concentration is maintained at 30,000 to minimize the need for barite additions. 0 • ~~ r~ Marathon Oil Company Well Name: KBU 24-7X Location: Kenai, Alaska. ~t~er~al summary -1 ~" hope o - i6oo~ Drilling Fluid System Gel/Gelex Spud Mud Ivey Products MI Gel / Gelex /Soda Ash /Caustic Soda / MI Bar / PolyPac Supreme UL Solids Control Shale Shakers / Desilter /Centrifuge Van Recommended shaker screens - 140 - 175 mesh Potential Problems Lost circulation, drill solids build-up, seawater influx. Interval Drilling Fluid Properties Depth Mud Funnel Yield API Drill Interval Weight Viscosity Point Fluid Loss pH Solids (ft) (ppg) {sec./qt) {1b.11U0ft2) {ml/30min) {%) 0 - 1600' 8.6 - 9.4 60 - 100 25 - 35 NC - 12 +/- 9.5 < 7% - Treat drill water with Soda Ash to reduce hardness. - Build spud mud with 20 - 25 PPB M-I Gel to +/- 100 seconds/quart funnel viscosity. - Lower funnel viscosity to +/- 75 after gravel zone has been drilled. - Add Gelex as needed to maintain sufficient viscosity for hole cleaning. - Increase funnel viscosity if fill on connections begins to occur. - Reduce fluid loss with additions of Polypac Supreme UL prior to running surface casing. - Add Sodium Meta Bisulfate to maintain a DO of < 3 PPM. - Condition mud prior to cementing casing to reduce yield point and gel strengths. - Estimated volume usage for interval - 1992 barrels. - Estimated haul off volume - 318 barrels. ~~ • Marathon Oil Company Well Name: KBU 24-7X Location: Kenai, Alaska. ~oter~al summary -1~-114" hole 1600 - 6147' Drilling Fluid System F1oPro NT Ivey Products F1oVis / PolyPac Supreme UL / KCl / SafeCarb 10 & 40 / MI Bar / Caustic Soda / Conqor 404 /Sodium Meta Bisulfate / Lubetex / As hasol Su reme / Kla and Solids Control Shale Shakers / Desilter /Centrifuge Van Recommended shaker screens - 175 - 200 mesh Potential Problems Lost circulation, coal sloughing, drill solids build-up, tight hole onditions nterval Drilling Fluid Properties Depth Mud Plastic LSRV API Drill Interval Weight Viscosity 1 min Fluid Loss MBT Solids (ft) (ppg) (cp.} {cps} {m1/30min) {°/®} 1600 - 6147' 9.1- < 9.5 8 - 12 30,000+ 7 - 9 < 7.5 < 7.5% - Use one rig pit to drill out surface casing. In other rig pits, build new F1oPro fluid using the enclosed fluid formula. - After drilling out surface casing, displace hole to F1oPro fluid prior to running leak off test - If running coals become a problem, treat with a 2 PPB addition of Asphasol D. - If torque or sliding problems occur, add 3%Lubetex. - NOTE: Watch for losses to the formation in the Sterling A8 Sand (+/- 4326' MD) - Estimated volume usage for interval - 3422 barrels. - Estimated haul off volume - 3977barrels. - Condition mud prior to running 9-5/8" casing. NOTE: Follow BOSCO guidelines when adding biocide, oxygen scavenger and corrosion inhibitor. ^rc • ~r~ • Marathon Oil Company Well Name: KBU 24-7X Location: Kenai, Alaska. 12-1/4" Interval from 1600 - 6147 Descri Pion Mud Wei ht Wei ht Material Code Wei ht_MaterialSG KBU 24-7X 9.1 - 9.4 MI Bar 4.2 In ut Preh drated Gel Preh drated Gel Conc. KCI Wt% Out ut - 1 bbl No 6 Order of Products Concentration Volume Product Addition Field, {b Lab., m Field, bbl Lab, ml Usa e 1 Water 298.70 298.70 0.853 298.70 2 Soda Ash 0.25 0.25 0.000 0.10 Reduce Hardness 3 Flovis 2.00 2.00 0.004 1.33 Viscosit 4 Pol ac Su reme UL 2.00 2.00 0.004 1.25 Fluid Loss Control 5 Caustic Soda 0.50 0.50 0.001 0.23 H Control 6 Potassium Chloride 19.07 19.07 0.023 7.98 Inhibition 7A SafeCarb 10 10.00 10.00 0.010 3.60 Brid in A ent 7B SafeCarb 40 10.00 10.00 0.010 3.60 Brid in A ent 7C SafeCarb 250 10.00 10.00 0.010 3.60 Brid in A ent 8 Sodium Meta Bisulfate 0.50 0.50 0.000 0.20 Ox en Scaven er 9 As hasol Su reme 2.00 2.00 0.006 2.08 Wellbore Stabili If bit ballin becomes a roblem add the followin 10 D-D CWT 1.00 1.00 0.003 1.00 Reduce BHA Ballin If for ue becomes a roblem, or slidin i s difficult, add u to 2% of th e followin 11 Lubetex 14.00 14.00 0.041 14.43 Lubricit Total 399 399 1.000 350 Calculated Mud Wei ht 9.1 Estimated Volume Usa 'e 3422 Barrels Tatal Chloride 29600 ~~ • Marathon Oil Company Well Name: KBU 24-7X Location: Kenai, Alaska. Internal summary - $112" hole 6147 - 8527' Drilling Fluid System FloPro NT Key Products F1oVis / Polypac Supreme UL / KCl / SafeCarb 10 & 40 / MI Bar / Caustic Soda / Conqor 404 /Asphasol Supreme / Lubetex / Klagard Solids Control Shale Shakers / Desilter /Centrifuge Van Recommended shaker screens - 210 - 230 mesh Potential Problems Lost circulation, coal sloughing, gas kick, tight hole conditions ntervaL Drilling Fluid Properties. Depth Mud Plastic LSRV API Drill Interval Weight Viscosity 1 min Fluid Loss MBT Solids (ft) (ppg) {cp.) (cps) {ml/30min) {%) 6147 - 8527' 9.1 - 10.5* 10 - 14 30,000+ 6 - 8 < 7.5 +/- 5% - Pre-treat drilling fluid with Bicarb and/or citric acid prior to drilling cement. Aggressively treat out cement contamination as soon as feasible. Build additional dilution volume to maintain proper specifications. - If running coals become a problem, treat with a 2 PPB addition of Asphasol Supreme. - Estimated additional volume for interval - 635 barrels. - Estimated haul off volume - 2267 barrels. - NOTE: Gas at the bottom of this interval (+/- 8527' MD) may reauire mud weights as high as 10 5 PPG to control. - Condition mud prior to running 3-1/2" casing. NOTE: Follow BOSCO guidelines when adding biocide, oxygen scavenger and corrosion inhibitor. ~~ • • ~~ Marathon Oil Company Well Name: KBU 24-7X Location: Kenai, Alaska. ~lltlan ~'orrnul~ - 8-1~2" hole 8-1/2" Interval from 6147 - 8527 ~~~~~+ Descri tion KBU 24-7X Mud Wei ht 9.1 - 10.5 Preh drated Gel No Wei ht MateriaLCode MI Bar Preh drated Gel Conc. Wei ht Material SG 4.2 KCI Wt% 6 -1 der of Products Cony dition Field, Ib 1 Water 325.19 2 Soda Ash 0.25 3 FloVis Plus 2.00 4 Pol ac Su reme UL 2.00 5a SafeCarb 10 10.00 5b SafeCarb 40 10.00 6 Potassium Chloride 20.76 7 CONQOR 404 2.00 8 Caustic Soda 0.50 9 Sodium Meta Bisulfate 0.50 If slidin or hi h for ue becomes a 10 Lubetex 7.00 If sloughing coals become a roblen 11 As hasol Supreme ~.Op ;niration Volume .Lab, m Field, bbl Lab, ml 325.19 0.929 325.19 0.25 0.000 0.10 2.00 0.005 1.34 2.00 0.004 1.34 10.00 0.012 3.78 10.00 0.012 3.78 20.76 0.025 8.68 2.00 0.004 1.43 0.50 0.001 0.23 0.25 0.001 0.25 ~oblem add 1 - 2% of the followin 7.00 0.021 7.00 add 2 - 4 b of the followin 2.00 0.004 1.33 Product Fluid Loss Inhibition Corrosion Con pH Control Wellbore Stabil Mix fluid in the order listed above Total 380.1 380.1 Estimatetl Volume Usa a 635 Barrels Calculated Mud Wei ht 9.050 Total Chloride 29600 s~q • • _~'~ Marathon Oil Company _ __ Well Name: KBU 24-7X Location: Kenai, Alaska. Interval Summary -Completion Procedures Corrosion Control Additive in Casing x Tubing Annulus Well KBU 24-7X Volumes: Tubing Volume 3-1/2" Tubing 74.18 barrels Annular Volume Casing x Tubing 377.00 barrels 3.50 x 2.992 x 8527 ft Open Hole x Tbg 120.23 barrels Total Annular Volume 497.24 Tubing Volume 74.1s Total Hole Volume 571.42 9.625 x 8.681 @ 6147 ft MD 8.500 x 3.50 @ 8527 ft MD Treatment Procedures. 1. After the 3-1/2" tubing is run and the drilling fluid is circulated and conditioned for the cement job, circulate an additional 380 barrels of drilling fluid. 2. Add 1 drum of Conqor 303A and 1 sack of Sodium Meta Bisulfate for each 95 barrels of drilling fluid pumped (4 drums 8 4 sacks total) 3. After the 380 barrels of drilling fluid with corrosion inhibitors have been pumped downhole, begin the cement job. 4. This procedure will place corrosion control in the 3-1 /2" x 9-5/8" annulus. ~~ r~ ~ - • • ~'~ Marathon Oil Company __ Well Name: KBU 24-7X Location: Kenai, Alaska. HANDLING OF DRILLING FLUID PRODUCTS HEALTH AND SAFETY 1. Drilling crews should be instructed in the proper procedures for handling fluid products. 2. Personal Protective Equipment (PPE) charts should be posted in the pit room, the mud lab, and the office of the Drilling Forman. 3. PPE must be in good working order and be utilized as recommended by the PPE charts. 4. Product additions should be made with the intent to use complete unit amounts of products (sacks, drums, cans) as much as possible in order to minimize inventory of partial units. 5. Insure all MSDS sheets are up to date and readily available for workers to access for information. ENVIRONMENTAL 1. Insure that all product stored outside is protected from the weather. 2. Do not store partial units (sacks, etc) outside if possible. 3. Properly secure all products for shipment between job sites: 4. When transferring fluid and or cuttings from the rig to trucks, insure all hoses are properly secured. 5. When utilizing the centrifuge solids van, insure all hoses and connections between the van and the rig are secure. ~ s~ • Marathon Oil Company Well Name: KBU 24-7X Location: Kenai, Alaska. Product Health and Safety Reference HMIS HAZARD RATIN[,S Product Function Health Flammabilit Reactivit PPE ASPHASOL SUPREME Shale Inhibitor 1 1 0 J BORAX Inorganic Borate 1 0 0 E CALCIUM CHLORIDE Densifier 1 0 0 E CIRTIC ACID pH Adjuster 1 0 0 E CONCOR 303A Corrosion Inhibitor 2 1 0 E CONCOR 404 Corrosion Inhibitor 1 1 0 J D-D CWT Fluids Additive 2 1 0 J DEFOAM X Defoamer 1 1 0 J DESCO CF Dispersant 1 1 0 E DUAL-FLO Fluids loss reducer 1 1 0 E FORM-A-SET AK Loss circulation Material 1 1 0 E FORM-A-SET XL Fluids Additive 2 1 0 E FORM-A-SET RET Loss circulation Material 1 1 0 J HEC-10 Viscosifier 1 1 0 E FLO-VIS PLUS Viscosifier 1 1 0 E STEEL LUBE EP Oil well additive Lubricant 1 2 0 J SODIUM BICARB Alkalinity control 1 0 0 E SODIUM META Oxygen Scavenger 1 1 0 J SPERSENE CF Dispersant 1 1 0 E GELEX Bentonite Extender 1 0 0 E G-SEAL Graphite LCM 1 1 0 E KLAGARD Shale Control 0 1 0 J LUBETEX Lubricant 1 1 0 J MI BAR Weighting Agent *1 1 0 E MI GEL Viscosifiet *1 1 0 E MI SEAL F, M, C LCM *1 1 0 E 1~ • Marathon Oil Company Well Name: KBU 24-7X Location: Kenai, Alaska. MIX II F, M, C LCM *1 1 0 E NUT PLUG F, M, C LCM *1 1 0 E POLYPAC'S Fluid Loss Control *1 1 0 E Potassium Chloride Shale Inhibitor, Densifier 1 0 0 E SafeCarbs (all) Bridging * weighting agent *1 0 0 E SAFEKLEEN Surfactant 1 1 0 J SALT Densifier 1 0 0 E SAPP Dispersant *1 0 0 E SODA ASH Calcium precipitation 1 1 0 E DRILLZONE ROP Enhancer 1 1 0 J SCREENKLEEN Dispersant/Emulsifyer 1 1 0 J BIOBAN BP-PLUS Biocide 2 1 1 J GREENCIDE 25G Biocide 3 0 0 J CAUSTIC POTASH Alkalinity Control 3 0 1 X CAUSTIC SODA Alkalinity Control 3 0 1 X HAZARDOUS MATERIALS IDENTIFICATION SYSTEIN {HMIs) HAZARD RATINGS 4 -Severe hazard 3 -Serious hazard 2 -Moderate hazard 1 -Slight hazard 0 -Minimal hazard * An asterisk next to the health rating indicates that a chronic hazard is associated with the material. HMIs PERSONAL PROTECTIVE EQUIPMENT INDEX A -Safety Glasses B -Safety Glasses, Gloves C -Safety Glasses, Gloves, Synthetic Apron D -Face Shield, Gloves, Synthetic Apron E -Safety Glasses, Gloves, Dust Respirator F -Safety Glasses, Gloves, Synthetic Apron, Dust Respirator G -Safety Glasses, Gloves, Vapor Respirator H -Splash Goggles, Gloves, Synthetic Apron, Vapor Respirator I -Safety Glasses, Gloves, Dust and Vapor Respirator J -Splash Goggles, Gloves, Synthetic Apron, Dust and Vapor Respirator K -Air Line Hood or Mask, Gloves, Full Suit, Boots X -Consult your supervisor for special handling directions 1~ • ~~ Ont~.CtS Marathon Oil Company Well Name: KBU 24-7X Location: Kenai, Alaska. Contact Title a-mail Work Cellular Pete Berga Drilling pkberga@marathonoil.com 907 565-3032 907 231-0663 Marathon Superintendent Will Tank Drilling Engineer wjtank@marathonoil.com 713 296-3273 713 203-8398 Marathon Tony Tykalsky Project Engineer ttykalsky@miswaco.com 907 274-5011 907 227-2412 MI SWACO Bob Myles Warehouse Manager rmyles@miswaco.com 907 776-8680 907 252-4218 MI SWACO Michael Barry Senior Field barry.michael@att.net 907 260-4666 907 590-3636 MI SWACO Engineer (home) Locke Rooney Field Engineer rooneyl@alaska.net 907 235-0598 907 590-3636 MI SWACO (home) John Nicholson /Dan Drilling Foremen alaska_drilling 907 283-1312 Byrd @marathonoil.com Marathon Responsibilities - MI Project Engineer and will coordinate daily between the Marathon office, rig, warehouse, and the M-I field engineers. - Well progress will be monitored to look for any changes, which will improve the efficiency of the operation or avert trouble. - Field Engineers will monitor and supervise product inventory to include re-palletizing any products for shipment to other locations at the end of the well. - Field Engineers will communicate with office personnel (Marathon & MI SWACO) for approval of any changes in the mud program (including introduction of new products). - Field Engineers will produce a recap at the end of the well based on daily activities. Recap should include any lessons learned that may be used to provide better service on future wells. Lessons learned can include changes in procedures, product additions, equipment usage, and/or utilization of any third party service. L ~ ~ ~U~n~ STATE OF ALASKA ALASR"A OIL AND GAS CONSERVATION COMMISSION PERMIT TO DRILL 20 AAC 25.005 ~~Eql~~ s~P o z zoos Alaska Ail & Gas Cons. Commission , Anchors e 1a. Type of Work: Drill Q Redrill ^ Re-entry ^ 1 b. Current Well Class: Exploratory ^ Stratigraphic Test ^ Service ^ Multiple Zone Q Development Oil ^ Development Gas Q Single Zone ^ 1 c. Specify if well is proposed for: -~ Coalbed Methane ^ Gas Hydrates ^ Shale Gas ^ 2. Operator Name: Marathon Oil Company 5. Bond: Blanket Q Single Well ^ Bond No. 5194234 11. Well Name and Number: KBU 24-7X 3. Address: P.O. Box 3128, Houston, TX 77253 6. Proposed Depth: MD: 8,527 TVD: 7,768 12. Field/Pool(s): Kenai Gas Field 4a. Location of Well (Governmental Section): Surface: 442' FNL, 599' FEL, Sec. 18, T4N, R11 W, S.M. 7. Property Designation: ADL 028142 Beluga/Upper Tyonek Pool Top of Productive Horizon: 560' FSL, 2,981' FEL, Sec. 7, T4N, R11W, S.M. 8. Land Use Permit: 13. Approximate Date: September 15 006 Total Depth: 560' FSL, 2,981' FEL, Sec. 7, T4N, R11 W, S.M. 9. Acres in Property: 2,560 14. Distance o Barest Property: 380 ft (ADL 022330) 4b. Location of Well (State Base Plane Coordinates): Surface:x - 275,211.828 y - 2,356,292.642 Zone - 4 10. KB Elevation (Height above GL): ' AGL) 88 feet 15. Distance to Nearest Well Within Pool: 1,470 ft to KBU 23-7 16. Deviated wells: Kickoff depth: 200 feet Maximum Hole Angle: 39.13 degrees 17. Maximum Anti ated Pressures in psig (see 20 2 035) Downhole: 3, Surface: ,858 18. Casing Program: Specifications To -Setting Depth -Bottom ment Quantity, c.f. or sacks Hole Casing Weight Grade Coupling Length MD TVD MD TVD (including stage data) Driven 20" 133 L-80 PE 79' 0' 0' 100' 100' 16" 13 3/8" 68 J-55 BTC 1,579' 0' 1,600' 1,479' 492 sacks ~ 12 1/4" 9 5/8" 40 L-80 BTC 6,126' 0' 0' 6,147' 5,388' 539 sacks / 8 1/2" 3 1/2" 9.3 L-80 EUE 8rd 8,506' 0' 0' 8,527' 7,768' 1,102 sacks 19. PRESENT WELL CONDITION SUMMARY o be completed for Redrill and Re-Entry Operations) Total Depth MD (ft): Total Depth TVD (ft): Plugs (mess ed : Effect. Depth MD (ft): Effect. Depth TVD (ft): Junk (measured): Casing Length S' Cement Volume MD TVD Conductor/Structural Surface Intermediate Production Liner Perforation Depth MD (ft): ~ Perforation Depth TVD (ft): 20. Attachments: Filing Fee Q BOP Sketch 0 Drilling Program Q Time v. Depth Plot ^ Shallow Hazard Analysis ^ Property Plat Q Diverter Sketch Q Seabed Report ^ Drilling Fluid Program Q 20 AAC 25.050 requirements ^ 21. Verbal Approval: Commission Repre entative: 22. I hereby certify that the foregoing is a and correct. Printed Name Willard J. T k ~ Signature /G ~ w~. Date Contact Title Advanced Senior Drilling Engineer Phone 713-296-3273 Date September 1, 2006 Commission Use Only Permit to Drill ~ API Number: Number: 2 C,?o- 50- 3 ~ -- a, C' S 6 ~)'l Permit Approval Date: See cover letter for other requirements. Conditions of approval : If ox is checked, well may not be used to explore for, test, or produce coalbed methane, gas hydrates, or gas contained in shales: Other: Samples req'd: Yes^ No+~ Mud log req'd: Yes^ No I ~ S ~" ~ Q ~ E ~ 0 ~ 00 D r4 ~. HZS measures: Yes^ No I~Q Directional svy req'd: Ye~ No APPROVED BY THE COMMISSION DATE: ,COMMISSIONER Form 10-401 Revised 12/2005 O Submit in Duplicate • KBU 24-7X Marathon Oil Company Drilling Program Alaska MARATHON OIL COMPANY DRILLING PROGRAM Kenai Gas Field KBU 24-7X Originator: Will Tank Reviewed by: Pete Berga September 1, 2006 Date Date Brian Ro Date 9/1/2006 C®IV~IDENTIAL MAREF2IAL Page 1 of 18 • • KBiJ 24-7X Marathon Oil Company Drilling Program Alaska TABLE OF CONTENTS 1. Emergency Response Information ............................................................................................................... ... 4 1.1 Directions to Location ...................................................................................................................................... 4 1.2 Rig Contact Numbers ................................................................................................................................... ... 4 1.3 Marathon Emergency Response Contacts ..................................................................................................... 4 1.4 Outside Emergency Response ..............................................:...................................................................... .. 4 1.5 Marathon Contact List ........................................................................................................:............................ 5 2. Regulatory Agency Contacts ........................................................................................................................ .. 5 2.1.1. Internal Regulatory Contact .......................................................................................................................... .. 5 2.1.2. External Regulatory Contact ............................................................................:............................................ .. 5 3. Regulatory Compliance ................................................................................................................................. .. 5 4. Drilling Program Summary ............................................................................................................................ .. 6 4.1 General Well Data ......................................................................................................................................... .. 6 4.2 Working Interest Owners Information ........................................................................................................... .. 6 4.3 Geologic Program Summary ............................................................................. .... ........................................ .. 6 4.4 Summary of Potential Drilling Hazards ......................................................................................................... .. 7 4.5 Formation Evaluation Summary .................................................................................................................... .. 7 4.6 Drilling Program Summary ....................................................................... . 8 4 7 ......................... ........................... Casin Pro ram S .. . g g ummary ............................................................................................................................ 10 4.8 Casing Design ............................................................................................................................................... 10 4.9 Calculation of Maximum Anticipated Pressures (MAWP and MASP) ........................................................... 10 4.10 Casing Test Pressure Calculations ............................................................................................................... 12 4.11 Blowout Prevention Equipment, Testing and General Procedures ............................................................... 12 4.11.1. Function Testing ............................................................................................................................................ 12 4.11.2. Pressure Testing ......................................... .................................. ................................................................ 13 4.12 Wellhead Equipment Summary ................................................................................................................... 13 4.13 Directional Program Summary .....................................................................:................................................ 13 4.14 Directional Surveying Summary .................................................................................................................... 14 4.15 Drilling Fluid Program Summary ................................................................................................................... 15 4.16 Drilling Fluid Specifications ........................................................................................................................... 15 4.17 Solids Control Equipment.: ............................................................................................................................ 16 4.18 Cement Program Summary .................................................:........................................................................ 17 4.19 Bit Summary .................................................................................................................................................. 17 4.20 Hydraulics Summary .................................................................... ............................................. .................... 18 4.21 Formation Integrity Test Procedure .............................................................................................................. 18 9/1/2006 CC~NFIDENTiAL I1flATEF~IAL Page 2 of 18 KBU 24-7X Marathon Oil Company Drilling Program Alaska Attachments Grou Attachment Attached Commercial information AFE Days/Cost vs. De th Curves X Pro'ect Objectives and Scorecard RSO Codin Information X Re uisitions Vendor List Bonus Pro ram Drillin Contract Re ulatory / HES Information Emergenc Evacuation Plan X H2S Contingen Plan n/a Re ulato Permits X Regulatory Rules and Regulations Risk Anal is Miscellaneous Pro rams Vendors Bit Pro osal X Cement Proposal X Directional Plan X Fluids Pro ram X Wellhead Equi ment - Descri tion/Drawin s Drill Strin and BHA Summa Ri Mobilization/Moorin Procedure n/a Geolo ical Information Location Ma w/ offsets X Offset Data Pro osed Formation Pore Pressure, Mud Wt & Fracture Gradient X Temperature Curves Geologic Structure Maps Geolo is Cross Section Bath met Ma n/a Anal sis Riser Anal sis n/a Station Kee ing Anal sis -Mooring/DP n/a Stress Check Casing Desi n File X Maximum Allowable Ove ull Miscellaneous Information Wellbore Dia ram n/a Ri Elevations X Well Location Dia ram X BOP Schematic X BOP Well Control Bridgin Document Detailed Casin S ecifications X Detailed Drill Pipe Specifications 9/1/2006 CfJN~iQENTIAL MAl'ERlAL. Page 3 of 18 ~- KBU 24-7X Marathon Oil Company Drilling Program Alaska 1. Emergencv Response Information 1.1 Directions to Location Method Directions Air Latitude - 60°26'37.991"N Longitude - 151°14'40.970"W From the Kenai airport, go 0.5 mile South on Willow Street. Tum East on Main Street Loop, go 0.3 miles. Continue East on Ground Bridge Access Road 3.2 miles. Turn West on Kalifornsky Beach Road. Go West and then South, go approximately 5 miles, just past the Kenai Gas Field office at Pad 34-31. Turn East onto the next lease road South of the Kenai Gas Field office. Travel Southeast 1 mile to pad 14-6. Go through pad and continue East 0.5 mile to pad 41-7. Turn and go 1 mile South to Pad 41-18. 1.2 Rig Contact Numbers Contact Office Cell Glacier Drilling Rig 1 Inlet Drilling Tool Pusher 907-283-1314 907-394-1321 Marathon Supervisor 907-283-1312 907-394-1317 1.3 Marathon Emergencv Response Contacts Individual Postion Main Phone Alternative Kenai Gas Field Emergency Number 907-283-6465 CERT 24 hrs Notification 1-800-MOC-CERT CERT Crisis Center Houston 713-296-4230 713-296-0237 1.4 Outside Emergencv Response Location Contact Phone Fire Kenai /Soldotna, Alaska 907-262-4792 Ambulance Hospital Kenai /Soldotna, Alaska Central Peninsula Hospital 907-262-4404 Police Kenai /Soldotna, Alaska Kenai Police Soldotna Police State Police 907-283-7879 907-262-4455 907-262-4453 Coast Guard 800-478-5555 Spill and Contamination Alaska Alaska State Spill Reporting National Response Center Oil /Toxic Chemical Spills 800-424-8802 Best Practices: 1 Policy: Post emergency notification information on rig floor, company man's and tool pushers' office Comments: 9/1/2006 C®NF'IDENTIAL MATERIAL Page 4 of 18 KBU 24-7X Drilling Program 1.5 Marathon Contact List i ~ Marathon Oil Company Alaska Contact Title Office Mobile Facsimile Home Will Tank Drilling Engineer 713-296-3273 713-203-8398 713-499-6737 832-934-2617 Pete Berga Drilling Superintendent 907-565-3032 907-529-0551 907-565-3076 907-346-3763 Bryan Roy Drilling Manager 713-296-3256 832-444-4772 713-499-6707 281-246-4686 Jennifer Enos Geologist 713-296-3319 713-408-3583 Clyde Scott Reservoir Engineer 713-296-2336 Ken Walsh Production Engineer 907-283-1311 907-394-3060 907-283-3050 John Nicholson Drilling Supervisor 907-283-1312 907-283-1313 Dan Byrd Drilling Supervisor 907-283-1312 907-283-1313 2. Requlatorv Agency Contacts 2.1.1. Internal Requlatorv Contact Contact Title Office Phone Cell Phone Home Phone Facsimile Chick Underwood Regulato Compliance 713-296-3254 979-830-7927 979-836-9390 713-499-6748 2.1.2. External Res~ulatorv Contact Contact Title Office Phone Facsimile 24 hr Emer en Pa er AOGCC 907-793-1236 BLM 907-267-1442 3. Requlatorv Compliance Regulation Requirement 20 AAC 25.035 a 10 A BOP testing interval requirement is now 14 days. 20 AAC 25.035 a 10 F Requirement fora 24 hour notice to AOGCC prior to BOP test. Comments 9/1/2006 CC3NFl®EN71AL MATERIBaL Page 5 of 18 KBU 24-7X Marathon Oil Company Drilling Program Alaska 4. Drilling Program Summary 4.1 General Well Data Well Name KBU 24-7X Lease /License Surface Location 442' FNL, 599' FEL, Sec. 18, T4N, R11 W, S.M. WBS Code DD.06.13631.CAP.DRL Slot/Pad KGF Pad 41-18 Field Kenai Gas Field Spud Date 09/15/06 (est.) KB (above MSL) 88' County/Province Kenai Peninsula API No. GL (above MSL) 67' State /Country Alaska Permit No. Penn. Datum KB Total MD 8,527' Well Class Development Water Depth N/A Total TVD 7,768' Rig Contractor Glacier Drilling Water Protection Depth Rig Name Glacier Rig 1 Best Practices: Comments: 4.2 Working Interest Owners Information Com an Workin Interest Address Phone Facsimile Marathon 100% P.O. Box 196168 Anchors e, AK 99519-6168 907-561-5311 907-565-3076 4.3 Geologic Program Summary Surface Location Coordinates From Lease/Block Lines 442' FNL, 599' FEL, Sec. 18, T4N, R11W, S.M. Latitude 60° 26' 37.991" N Longitude 151 ° 14' 40.970" W UTM North (Y) 2,356,292.642' UTM East (x) 275,211.828' Tolerance Formation MD -RKB (ft) TVD - RKB ~ (ft) Pore Pressure (psi) Pore Pressure (ppg) Lithology Possible Fluid Content Sterling A-8 (Not a Prod Target) 4,326 3,638 0.8 - 6.5 Sandstone Gas/Water Beluga {Not a Prod Target) 5,498 4,743 1.5 - 7.3 Sandstone Gas Middle Beluga (Primary Target) 6,172 5,413 3.8 - 8.8 Sandstone Gas Lower Beluga (Primary Target) 6,872 6,113 3.8 - 8.8 Sandstone Gas Tyonek (Secondary Target) 8,027 7,268 5.8 -.8:6~ Sandstone Gas Ia•6 9/1/2006 CONFIDENTIAL. MATERIAL Page 6 of 18 • • KBU 24-7X Drilling Program Marathon Oil Company Alaska Depth (KB) Horizontal Displacement (ft) MD TVD +N/-S +E/-W Tolerance Target (ft) (ft) Location (Y) (X) (ft) Middle Beluga 6,172 5,413 560' FSL, 2,981' FEL, Sec. 7, T4N, R11W, S.M. 1,002 -2,382 Circle 200' radius TD 8,527 7,768 560' FSL, 2,981' FEL, Sec. 7, T4N, R71W, S.M. /` 1,002 -2,382 Circle 200' radius 4.4 Summarv of Potential Drilling Hazards Hazard Event Depth KB Discussion Precautions (ND) Lost Circulation in Low Pressure Intermediate Control losses by using sufficiently sized LCM, Take care not to surge the hole during Sterling and Beluga sands Hole including fibrous and calcium carbonate types. tripping operations. Potential Hazards Statement To comply with state regulations the Potential Hazards section and the well shut-in procedures must be posted in the driller's dog house. The man on the brake (driller or relief driller) is responsible for shutting the well in (BOPE or diverter as applicable) as soon as warning signs of a kick are detected and an influx is suspected or confirmed. A copy of the approved permit to drill must be kept on location and be readily available to the AOGCC or BLM inspector. This well's primary objective is gas and no oil sands are expected to be encountered. No HZS is anticipated. Gas sands will be encountered from +/- 4,326' MD (3,638' TVD) to total depth of the well. These sands will run from highly depleted to slightly above normal pressure. Lost circulation and differential sticking are potential hazards in some of the Sterling and Beluga sands. The Flo-Pro mud system that will be used to drill the well will help reduce these risks and lost circulation materials will be on location. Weighting material will available on location for proper well control. ~~ Best Practices: .~:s 1 Comments: 4.5 Formation Evaluation Summarv Interval LWD Electric Logs Mud Logs Surface 0' - 1,600' MD None None None Intermediate 1,600' - 6,147' MD None None Basic with GCA, shale density, temperature in and out, sample collection (10' samples). Production 6,147' - 7,768' MD None Reeves Quad Combo, MFT. Pull GR- Neutron to surface. Basic with GCA, shale density, temperature in and out, sample collection (10' samples). Completion N/A GR, CCL, CBL N/A Comments: 9/1/2006 CONFIDENTIAL MATERIAL_ Page 7 of 18 KBU 24-7X Marathon Oil Company Drilling Program Alaska 4.6 Drilling Prostram Summary Drive Pipe: N/A Conductor: 20" set to approximately 100', prior to drilling rig move. MIRU drilling rig. NU diverter. 1. RU crane and hammer. Drive 20" conductor to +/-100 ft. RKB. RD crane and hammer. 2. Move in and rig up rotary drilling rig. 3. Install starting head 20" SLC x 21 1/4", 2M flanged. 4. Nipple up 21 1/4", 2M diverter, 16" diverter valve, and 16" diverter line. /'~ 5. Function test diverter and diverter valve. Best Practices: 1 Comments: Surface: Drill 16" hole to +/- 1,600' set 13-3/8" casing. 1. Drill a 16" hole to 1,600' MD (1,479' TVD) per the directional plan. 2. RIH with 13 3/8" casing and hang off in the elevators. Make up stab-in sub and centralizer on 5" drill pipe. TIH with inner string and latch into stab-in float collar. Cement 13 3/8" casing. Sting out, shear out drill pipe wiper plug, and circulate drill pipe clean. TOOH with inner string. 3. Cut off 13 3/8" casing. ND diverter. 4. Install 13 3/8" slip lock connection X 13 5/8" 5M flanged multibowl wellhead. `~ 5. NU 13 5/8" 5M BOP'S. Test BOP'S and choke manifold to 250/3,000 psi. 6. Set wear bushing. 7. Test surface casing to 1,500 psi. Best Practices: 1 During cementing operations, take returns in the cellar, instead of into the pits. Eliminates the clean up of pits from cement that circulated to surface. Vac trucks will pull from cellar. Comments: Intermediate: Drill 12-1/4" hole to +/- 6,147' set 9 5/8" casing. 1. PU 12 1/4" PDC bit and directional BHA. D ' I out float equipment and 20' of new formation. CBU. 2. Test shoe to leak off. Estimated EMW is 5 pg. 3. Drill 12 1/4" directional hole to 6,147' MD ,388' TVD) as per directional program, short tripping as required. 4. At TD circulate hole clean. Make wiper trip. TOOH and lay down BHA. Pull wear bushing. 5. Change out variable pipe rams with 9 5/8" casing rams. Run test plug and test casing rams to 3,000 psi. 6. Run and cement 9 5/8" casing. Land hanger in multibowl wellhead. 7. Back out landing joint. Change out 9 5/8" casing rams with variable pipe rams. Run test plug and test rams to 250/3,000 psi. / 8. Set wear bushing. Test casing to 1,500 psi. Best Practices: 1 Pre-heat mud mix water to help in early shaker screen blinding issues with the mud. Comments: Due to anticipated losses in the Sterling and Upper Beluga, both calcium carbonate and fibrous material may be needed. Care must be taken on trips to minimize the possibility of surging the hole. 9/1/2006 C{~N1=IDENTIAL MATERIAL Page 8 of 18 KBU 24-7X Marathon Oil Company Drilling Program Alaska Production: Drill 8 1/2" hole to +/- 8,527' set 3-1/2" EXCAPE string. 1. PU 8 1/2" bit and directional BHA. Drill oa equipment and 20' of new formation. CBU. 2. Test shoe to leak off. Estimated EM 13 g. 3. Drill 8 1/2" hole to an anticipated TD o 27' MD (7,768' TVD) as per the directional program, short tripping as required. 4. At TD circulate hole clean. Make wiper trip. TOOH. 5. RU Precision. Run open hole logs as per plan. RD logging company. 6. TIH w/ 8 1/2" bit to TD for wiper trip. TOOH to 9 5/8" shoe and circulate until log evaluation is complete for picking EXCAPE modules. After picks are made, trip to TD and circulate clean. TOOH and lay down BHA and drill pipe. Pull wear bushing. i 7. RU and run 3 1/2" EXCAPE casing string. RU logging company to correlate EXCAPE modules to open hole logs. RD logging company. 8. Cement 3 1/2" casing while reciprocating. Bump plug with 500 psi over displacement pressure. WOC. 9. PU 3 112" casing. PU BOP stack. Make control line and electric line connections to tubing bonnet assembly. Set slips. Cut 3 1/2" casing. 10. LD BOP. Set 3 1/2" packoff. NU 13 5/8" 5M X 3 1/16" 10M tubing head adapter and 3 1/16" 10M tree. Test tree to 5,000 psi. 11. Rig down and move out drilling rig. Note: Drill all hole sections with 5" drillpipe. Final core points will be determined by Geology. Perforating guns will be run on the outside of the 3 1/2" production casing with a flapper valve just below each perforating gun. Guns to be activated by control line to surface. Best Practices: 1 Drill all hole sections with 5" drillpipe to maximize hole cleaning hydraulics. 2 Do not circulate on bottom longer than 1 hour prior to moving pipe on a short trip to minimize hole washout. This is important when waiting on log analysis to give EXCAPE module placement points. 3 Put lubricant in prior to drill out of intermediate shoe. 5% Lubetex is normally required, possibly more depending on solids in the mud. Comments: Completion: Completion will be done without a rig. Best Practices: 1 Comments: 9/1/2006 CQNFIDENTIAL MATEFdIAL Page 9 of 18 • KBU 24-7X Drilling Program 4.7 Casing Program Summary • Marathon Oil Company Alaska MD (ft) Connection A PI Ratings Casing Size (in) Top Bottom Weight (Ibs/ft) ID (in) Drift (in) ~ Grade ~ Type O. D. (in) Makeup Torque (ft-Ibs) Hole Size (in) ~ ,N m n a .~. o ~- U o ~, a~i '~ ~ 13 3/8 0 1,600 68 12.415 12.259 J-55 BTC 14.375 N/A * 16 3,450 1,950 1,140 9 5/8 0 6,147 40 8.835 8.679 L-80 BTC 10.625 N/A * 12 1/4 5,750 3,090 979 31/2 0 8,527 9.3 2.992 2.867 L-80 8rd 4.5 3,200 81/2 10,164 10,530 207 Best Practices: 1 Have float equipment made up at Tubescope's yard prior to bringing casing to location. Buck on all equipment to the pin end and not make up to box below, due to rig height restrictions. 2 * -Make up buttress connection to proper mark, not to a torque value. Comments: 4.8 Casing Design Casing Shoe Safety Factors Setting Maximum Casing Depth Mud Wt Frac. Form Surface ~ a c o Size Weight TVD When Set Grad Press Pressure (in) (Ib/ft) Grade (ft) (Ib/gal) (Ib/gal) (Ib/gal) (psi) m' U ~ 13 3/8 68 J-55 1,479 9.4 15.0 8.4 0 2.18 2.70 2.69 9 5/8 40 L-80 5,388 9.5 13.0 1.5 2,858 1.83 1.16 2.44 31/2 9.3 L-80 7,768 10.0 15.0 9.0 2,858 1.15 2.61 1.30 4.9 Calculation of Maximum Anticipated Pressures (MAWP and MASP) Setting Casing Depth Size TVD MAWP * MASP ** ~ Mud/Gas (in) (ft) (psi) (psi) Percentage 13 3/8 1,479 2,330 0 0/100 9 5/8 5,388 3,997 2,858 ~ 0/100 3 1/2 7,768 6,910 2,858 0/100 mHVVr = nnaximum anowaole working pressure "* MASP =Maximum anticipated surface pressure 9/1/2006 CONFIDENTIAL MATERIAL Page 10 of 18 • KBU 24-7X Marathon Oil Company Drilling Program Alaska Surface casing: 13 3/8" (1,600' MD. 1 479' TVD) MASPf~c =((Fracture gradient of shoe + S.F.) x .052 x TVDsnoe) -Hydrostatic pressure of gas column at the shoe. MASPtrac = (15.0 ppg + 0.5 ppg) x .052 x 1,479' - (0.1 psi/ft x 1,479') MASPf~c = 1,192 psi - 148 psi MASP~c = 1,044 psi. MASPbnp = BHPope~ Hole cd -Hydrostatic pressure of a gas column MASPbnp = (1.50 ppg x .052 x 5,388') - (0.1 psi/ft x 5,388') MASPbnp = 420 psi - 539 psi MASPbnp = 0 psi MASP =MASPbnp = 0 psi MAWP = (0.7 x Casing Burst) - (Mud Wt. -Backup Fluid Wt.) x .052 x TVD MAW P = (0.7 x 3,450) - (9.4 - 8.3) x .052 x 1,479' MAWP = 2,415 psi - 85 psi = 2,330 psi Intermediate casing: 9 5/8" (6.147' MD 5 388' TVD) MASP~c =((Fracture gradient at shoe + S.F.) x .052 x TVDsnoe) -Hydrostatic pressure of gas column at the shoe. MASPrrac = (13.0 ppg + 0.5 ppg) x .052 x 5,388' - (0.1 psi/ft x 5,388') MASPf~c = 3,782 psi - 539 psi MASP~c = 3,243 psi. MASPbnp = ¢HPo~e„ nae ca -Hydrostatic pressure of a gas column MASPbnp (9.0-ppg x .052 x 7,768') - (0.1 psi/ft x 7,768') MASPb = 3;635 psi - 777 psi MASPbnp`- x;$58 psi MASP =MASPbnp = 2,858 psi MAWP = (0.7 x Casing Burst) - (Mud Wt. -Backup Fluid Wt.) x .052 x TVD MAWP = (0.7 x 5,750) - (9.5 - 9.4) x .052 x 5,388' MAWP = 4,025 psi - 28 psi = 3,997 psi Production casing: 3 1/2" (8.527' MD 7 768' TVD) MASPf~ac =((Fracture gradient at shoe + S.F.) x .052 x TVDsnoe) -Hydrostatic pressure of gas column at the shoe. MASPf~c = (15.0 ppg + 0.5 ppg) x .052 x 7,768' - (0.1 psi/ft x 7,768') MASPtrac = 6,261 psi - 777 psi MASPfrac = 5,484 psi. MASPbnp = B ope~''noie cd -Hydrostatic pressure of a gas column MASPbnp = .0 ppg x .052 x 7,768') - (0.1 psi/ft x 7,768') MASPbnp = ` -635 psi - 777 psi MASPbnp = 2,858 psi MASP =MASPbnp = 2,858 psi MAWP = (0.7 x Casing Burst) - (Mud Wt. -Backup Fluid Wt.) x .052 x TVD MAWP = (0.7 x 10,160) - (10.0 - 9.5) x .052 x 7,768' MAWP = 7,112 psi - 202 psi = 6,910 psi 9/1/2006 CQNFIDENTIAL MATERIAL Page 11 of 18 KBU 24-7X Marathon Oil Company Drilling Program Alaska Best Practices: 1 Comments: 4.10 Casing Test Pressure Calculations Casing test pressure calculations are based on the lesser of (1) MASP, or (2) 70% of rated burst pressure of the casing adjusted for the mud weight used during the test less a 8.3 ppg back-up unless otherwise noted. AOGCC regulations state that casing pressures must be 50% of the BOP working pressure documented on the approved permit to drill. Best Practices: 1 Comments: 4.11 Blowout Prevention Equipment, Testing and General Procedures BOP PROGR AM Casing Test Test Casing Test Fluid Pressure Size MAWP MASP press Density BOPS Low/High Casing (in) (psi) (psi) (psi) (Ib/gal) Size & Ratin 9 (psi) (1) 13-5/8" 5M annular Surface 13 3/8 2,330 0 1,500 9.0 (1) 13-5/8" 5M pipe ram 25013,000 (1) 13 5/8" SM blind ram (1) 13-5/8" 5M drilling spool with 3-1/8" 5M outlets (1) 13-5/8" 5M annular Intermediate 9 518 3,997 2,858 1,500 9.5 (1) 13-5/8" 5M pipe ram " 250/3 000 (1) 13 5/8 5M blind ram , (1) 13-5/8" SM drilling spool with 3-1/8" 5M outlets (1) 13-5/8" 5M annular Production 31/2 6,910 2,858 1,500 10.0 (1) 13-5/8" 5M pipe ram 250/3 000 (1) 13 5/8" 5M blind ram , (1) 13-5/8" 5M drilling spool with 3-1/8" 5M outlets Blowout Preventers i, The blowout preventer stack will consist of a 13-5/8" x 5000 psi annular preventer, a 13-5/8" x 5000 psi double gate ram type preventer with blind rams in the bottom and pipe rams in the top and a 13-5/8" x 5000 psi drilling spool (mud cross) with 3-1/8" x 5000 psi outlets. ti j The choke manifold will be rated 3-1 /8" x 5000 psi. It will include a remote hydraulic actuated choke and a hand adjustable choke. Also included is a poor-boy gas buster, and avacuum-type degasser. A flow sensor will be installed in the flowline and the mud pits will contain sensors to measure the volume of fluid in the surface mud system. Both sensors will contain readouts convenient to the drillers console. 4.11.1. Function Testina Function Regularly. 9/1/2006 CONFI®ENTIAL MATERIAL Page 12 of 18 KBU 24-7X Drilling Program 4.11.2. Pressure Testing Marathon Oil Company Alaska The Marathon Drilling Supervisor will verify all pressure tests of BOP's, surface lines, seals, casings and FIT or LOT tests. All tests are to be recorded on the IADC and daily drilling reports. Best Practices: 1 Comments: 4.12 Wellhead Equipment Summarv Component Description Casing Hanger Type Casing Head 13-5/8" 3M X 13-3/8" Slip Loc W/ 2, 2" LPO, Landing Base for 20" Conductor, U, AA, PSL1, PR1 13 5/8" x 9 5/8" Fluted Mandrel Tubing Head 13-5/8" 3M Studded Bottom X 13-5/8" 5M Flg Top, W/ 2, 2-1/16" 5M Studded Outlets, 13 5/8" x 3 1/2" Manual U,AA,PSL1,PR1 Slip Adapter Flange 13-5/8" 5M X 3-1/16" 10M W/ Seal Pocket and 3" H BPV Threads Best Practices: 1 Comments: Control lines and electric cable for the EXCAPE system will be routed through the adapter flange ports. 4.13 Directional Program Summarv Build Tum Coordinates Sec. No. Description MD (ft) TVD (ft) Rate (°/100') Rate (°/100') Dogleg (°/100') Inclination (deg) Azimuth (deg) +N/-S (ft) +E/-W (ft) VS (ft) 1 Tie On 0 0 0 0 0 0 292.815 0 0 0 2 KOP 200.00 200.00 0 0 0 0 292.815 0 0 0 3 Build up Section 3.00 0 3.00 292.815 4 End of Build 1,504.35 1,405.29 3.00 0 3.00 39.13 292.815 166.10 -394.85 428.36 5 Hold Section 0 0 0 39.13 292.815 6 End of Hold 3,563.27 3,002.42 0 0 0 39.13 292.815 669.94 -1,592.55 1,727.73 7 Drop Section -1.50 0 1.50 292.815 8 End of Drop 6,171.97 5,413.00 -1.50 0 1.50 ~ 0 292.815 1,002.14 -2,382.24 2,584.45 9 TD 8,526.97 7,768.00 0 0 0 0 292.815 1,002.14 -2,382.24 2,584.45 9/1/2006 C®NI~IDENTiAL MATERIAL Page 13 of 18 KBU 24-7X Marathon Oil Company Drilling Program Alaska o -- -- --- - .....- . __ -- r ~-~ ---, k 1000 -- 713 3/8' ' ~ ~....._ 1 _~ L ~. 2000 _ _.._ ._ ..~; C ..-...:_- - . s~ ~ .............. : '. p3000 - _..-...-.. f S O u7 - _.~ C C a 000 -- _ 1 ~ + ~ L X5000 - '---- ~--- ~ 95/S _. ~ Z ~ j KBU 24-7X Middle Beluga - ._ ~ ~ ~ a~sooo - ~ - -r- -: ~ _ ~ - _. , _~ _ - ~ ~ ,., ~ a ~ i 7000 ~. __ - . -.-.- _ + ~ 3 1/2 LL 8000 { f - KBU 24 7X TQ~ _- _.. ~ _ I - } 1 I '- _ - E - _ -2000 -1000 0 1000 2000 3000 4000 5000 Vertical Section at 292.82° (2500 ftrn) Comments: Vertical section calculated from a reference azimuth of 292.82° taken from surtace location to bottom hole location. Potential Wefl Interference: Well Distance (ft) Depth fMD) KBU 33-7 242.40 1,117 KU 24-7 317.34 473 KU 24-7RD 233.94 4,766 KBU 43-7X 1,975.96 8,191 No serious interference exists. See attached directional plan and anticollision analysis for more details. Best Practices: 1 Comments: 4.14 Directional Surve in Summa Interval MD (ft) MWD Survey Magnetic Multishot Gyro Multishot Oth T~irvey Remarks Surface 0-1,600' X Intermediate 1,600' - 6,147' X Production 6,147' - 8,527' X Best Practices: 1 Comments: 9/1/2006 CONFIDENTIAL MATERIAL Page 14 of 18 -3000 -2000 -1000 0 West(-)/East(+) (1000 ~ n) • KBU 24-7X Drilling Program Marathon Oil Company Alaska 4.15 Drilling Fluid Prostram Summary Interva l -TVD Minimum Inventory From To Density Gel (ft) (ft) (Ib/gal) Fluid Description Additives Viscasifier Barite 0 1,479 8.6 - 9.4 Gel / Gelex Spud Mud Gel, Gelex, Soda Ash, Caustic, Barite, Polypac Supreme UL Flo-Vis, Polypac Supreme UL, KCI, SafeCarb 1,479 5,338 9.1 - 9.5 6% Flo-Pro NT w/ SafeCarb 10,40,250, Mix II, Barite, Caustic, Conqor 404, Sodium Meta Bisulfate, Lubetex, Asphasol, Klagard Flo-Vis, Polypac Supreme UL, KCI, SafeCarb 10 5,338 7,768 9.1 10.5 6% Flo-Pro NT w/ SafeCarb & 40, Barite, Caustic, Klagard, Conqor 404, Sodium Meta Bisulfate, Lubetex, EMI 920, Asphasol Best Practices: 1 Because the production zone will be fracture stimulated, the mud system from the intermediate section will be re-used for the production hole after cleanup through the on-site centrifuge. Comments: 4.16 Drilling Fluid Specifications Interva l -TVD LSRV Drill From (ft) To (ft) Density (fb/gal) Vis (seGgt) 1 min (Ib./100ftZ) PV (cP) YP (Ib/100 ft~} Fluid Loss (cc) pH Solids (%) 0 1,479 8.6 - 9.4 60 - 100 N/A 25 - 35 NC - 12 +/- 9.5 < 7 1,479 5,338 9.1 - 9.5 30,000 + 8 - 12 7 - 9 +/_ 9,5 < 7.5 5,338 7,768 9.1 - 0.5 30,000 + 10 - 14 6 - 8 +/- 9.5 +/- 5 ~- Best Practices: 1 As a standard practice for long string completions, the drilling mud that will remain above the top of cement on the 3'/z" production casing will be treated with corrosion inhibitor (Conqor 303A) at a concentration of 1 drum per 100 barrels of drilling fluid. Comments: See mud prognosis for details. Sized CaCOs (SafeCarb) will be used to control leakoff. • 9/1/2006 CONFIDENTIAL MATERIAL Page 15 of 18 • • KBU 24-7X Drilling Program Marathon Oil Company Alaska 4.17 Solids Control Equipment ` o ~ ~ m ~ ;?~ N ~ ~ N ~ ~ ~ (/1 ~ fn U ~ N C i _ a~ ' U m m p m v i w v c ~ w- o Interval ~ ~ ~ g U U U N Comments 0 - 8,527' MD X X X X Closed Loop System, Full Containment, Run shakers with finest screens possible Item Equipment Specifications (quanfity, design type, brand, model, flow capacity, etc) Shaker 2 - Swaco Mongoose PT Desander N/A Desilter 1 -Derrick Model 0522 Mud Cleaner N/A Centrifuge 2 - MI/Swaco units Cuttings Dryer N/A Cuttings Injection Marathon G&I Facility Zero Discharge N/A Best Practices: 1 Have vacuum trucks pull fluids from trough above slop pit to more efficiently pull fluids for disposal. This minimizes water added to the solids to suspend for pickup by the trucks, thus minimizing total volume to be disposed of. Comments: 9/1/2006 COId1=IDE1VTlAL MATER1Al_ Page 16 of 18 • ~ KBU 24-7X Drilling Program Marathon Oil Company Alaska 4.18 Cement Program Summary De pth Gauge Top of Cement Gauge Ann Vol Slurry Casing Size (in) MD (ft) TVD (ft) Hole Size (iN MD (ft) TVD (ft) Ann Vol To TOC (ft3) With OH Excess (ft3) Density LeadlTail (pPg) Open Hole Excess (%) Thickening Time (hrs) 20 100 100 Driven N/A 13 3/8 1,600 1,479 16 0 0 725 1,236 12.0 75 8 9 5/8 6,147 5,388 12 1/4 3,191 735 1,067 12.5 / 13.5 40 8 31/2 8,527 7,768 81/2 ,60 4,843 975 1,289 15.8 40 N/A Mix Water Compressive Casing Size Density r Qty % Yield Slurry Vol TOC MD Qty WL FW Strength (psi) (in) Slurry Cement Description (Ib/gal) (sx) (ft3/sx) (ft3) (ft) (gal/sx) Type (cc) (%) 8 hr 24 hr 13 3/8 Tail Type I Cement 12.0 492 2.51 1,236 0 11.28 Fresh 812 0 196 818 9 5/8 Lead Class"G" 12.5 281 2.10 590 3,800 11.92 Fresh 273 769 Tail Class "G" 13.5 258 1.85 477 5,147 9.31 Fresh 0 0 208 981 3 1/2 Tail Class "G" 15.8 1,102 1.17 1,289 5,600 4.97 Fresh 24 0 226 2,632 Best Practices: 1 Pump several fluid calipers at TD to help with the hole volume determination from the open hole caliper log. Comments: See cement prognosis for details and spacer specifications. 4.19 Bit Summary Interval - MD Type Recommended Estimated From (ft) To (ft) Size _ (in) Manufacturer Model No. IADC WOB (kips) RPM Rotating Hours Expected Minimum ROP (ft/hr) 0 1,600 16 Christensen MX-1 115 1 - 4 80 - 350 1,600 6,147 12 1/4 Christensen HCM 5062 M323 Up to 52 Motor 6,147 8,527 8 1/2 Christensen HCM605 M323 Up to 25 Motor Best Practices: 1 Drill all hole sections with 5" drillpipe to maximize hole cleaning hydraulics. Comments: See bit prognosis for additional information. If a second bit is necessary for the 12'/4" hole a MX-C3 (IADC 137) should be used to finish this section. Back up bits for the 8'/z" hole section will consist of mill tooth and TCI tricone bits. 9/1/2006 Ct)IdFIDEIVTIAL MATERIAL Page 17 of 18 ~ ~ KBU 24-7X Drilling Program Marathon Oil Company Alaska 4.20 Hydraulics Summary Qty Make Model Liner ID (in) Stroke (in) Max Press @ g0% WP (psi) Displacement @ 95% Vol. eff (gal/stroke) Max Rate @ 95% Vol. eff (spm/gpm) Hole Sections Used On 5 8 2,597 2.04 125 / 255 Surface 3 National Oil Well A600PT 5 8 2,597 2.04 125 / 255 Intermediate 5 8 2,597 2.04 125 / 255 Production Est. Hole Pump Standpipe Openhole Nozzle Depth-MD Size Rate Pressure Min AV MW ECD Size ~P at bit (ft) (in) (gpm) (psi) (fpm) (ppg) {ppg) {32"s) si Remarks (Drill string configuration) 0 - 1,600 16 650+ 1,500 69 9.0 3 -18's 1-15 1,600 - 6,147 12 1/4 662 2,000 130 9.5 6 - 13's Actual Data from CLU 8 (@ 6,722' MD) 6,147 - 8,527 8 1/2 480 2,000 249 10.0 5 - 15's Actual Data from CLU 10 (@ 8,450' MD) Best Practices: 1 Comments: 4.21 Formation Integrity Test Procedure 5urtace and Intermediate casing shoes will be tested to Leak-off. Prior to drilling out of casing strings, test BOPs and casing to the specified pressure listed in the BOP Program section. Plot test and record volume required on the drilling report. Leak-off tests (LOT) are to be conducted as described below: 1. Drill 20' to 25' of new formation below the casing shoe and condition the mud to the same properties in and out. 2. Pull drill string into the casing shoe and close ram preventer, and line up to the choke manifold with a closed choke. 3. Begin slowly pumping fluid down the drill string at 1/2 bpm while recording casing and drillpipe pressures at 1/2 bbl intervals. A running plot of pressure versus volume should be kept by the drilling foreman while the test is in progress. 4. Stop pumping when the pressure curve departs form a straight line sufficiently to indicate leakage into the formation. Record as ppg equivalent mud density in the IADC and morning reports. 5. Monitor and plot pressure drop and time after shut-in for 10 minutes or until the shut-in pressure stabilizes. Best Practices: 1 Comments: 9/1/2006 CONFIDENTIAL MATERIAL Page 18 of 18 Check IVo Check Date Bank Bank No Marathon Oil Company Vendor Direcl~rxautriesto: ACCOUNTS PAYABLE DEPARTMENT Hndl 9 P. O. Box 22164 Accts Payat~e Contact Center 1238091 08/31/2006 NCBAS 7780 5001123 Tulsa, OK 74121-2164 Phone: 918-925-6097 AL Invalce Number '1rno~ce Date DGCwm+anl hk RemitGpmmetll t^xoss Amount [Ascqunt InvoicalPay Amount L100.00 08/31/2006 1900038881 TOTAL: 100.00 100.00 100' 100.0 (hULU Vrv rtFif•VtiH~ivrv ocwrv.a~u vc.nvn v..~.....,, ..~.,~~... .~.._. __....._, BO 0 ® ® '0 ® 0 0 • '0' D)~1 REV. 5/00 -~_~-_~-°.~,~~.~..a..~_~_~~~~~~-~~~ ~~ua_._~.~ ~ -~~- 7780 56-3891412 Marathon Oil Company _ CHECK DAT ; HECK N „MBE A~,~,~,OUNTS PAYABLE CHECK ,_ _, _~ F~-Q.Box 22164 ,,,,, ~m"~" ,'"~ 1)8/31/2 ~ ~~~~~ ~c ~ 123G,091 -_ ~ Tulsa, C)K 7~t12"1-2164 (116 ~~ ~ _-_ `. ~ - V~,JID~nFfER 18~DAVSyi PAY 70?HE ORDER OF _ _ ~_ u~ ~ r,i.pU~ h~ ~~ i~;~~'ia~~~ ~ ~ ~ ` ~ , ~" 333 W ANCH ~N '' 7TH AVE STE 100 GE, AK 99501-3539 NATIONAL CITY BANK Ashland, Ohio ~~. -- ~~ ~,-r ..,; - - ~~~~~~~ - ~ ~ ~ ~~~~~~~,~, --ter ~~ r ~ ~ ~ ~~ ~ x ~- ~ ~ - II'000 L 23609 LII' x:04 L 203895: 0 L8348411. • • TuavsNrlTTa~, r.E~rTEx cx~cKLIST WELL NAME ~~ ~ „~, ~ -~X Development Service Exploratory Stratigraphic Vest Non-Conventional Well Circle Appropriate Letter /Paragraphs to be Included in Transmittal Letter CHECK i ADD-ONS WHAT (OPTIONS) APPLIES ~ TEXT FOR APPROVAL LETTER i~ItiLTI LATERAL ~ The permit is for a new wel[bore segment of existing ~ ~ well (If last two digits API number in are ~ Permtt No. , API No. ~0- - _ between 60-69) f Production should continue to be reported as a function of the ;original API number stated above. PILOT HOLE In accordance with 20 AAC 25.00~(f), all records, data and logs !acquired for the pilot hole must be clearly differentiated in both well name ( PH) and API number (~~- - -_) from records, data and logs __ I 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 I through target zones. Non-Conventional ~ Please note the following special condition of this permit: production or production testing of coal bed methane is not allowed Well for (name of weld until after Companv Name) has designed and I ~ implemented a water well testing program to provide baseline data on water quality and quantity. ~Compan~~ Name) must contact the Commission to obtain advance approval of such water well testing Rev: V25/06 C:`~jody\transmittal checklist WELL PERMIT CHECKLIST Field & Pool. KENAI, UPPER TYONEK BELUGA GAS= 44857- _ _ _ ...Well Name: KENAI.BELUGA UNIT 24-7X __ .Program DEV _ _ Well bore seg 'i PTD#:2061270 C ompany MARATHON OIL CO _____ ___ _ _ _ _ ____ Initial ClasslType DEV / 1-GAS__ GeoArea 820 Unit On/Off Shore On Annular Disposal i, Administration ',1 Permit fee attached Yes - ',2 Lease number appropriate Yes '13 Unique well name and number - - Yes 14 Well located in a defined pool _ _ _ _ - _ YeS ',5 Well located proper distance from drilling unit boundary.. Yes - '6 Well located proper distance from other wells Yes 7 Sufficient acreage available in drilling unit - - - Yes - - - _ !8 If deviated, is-wellborep1at-included Yes 9 Operator only affected party - - Yes ',10 Operator has appropriate-bond inforce - - Yes j11 .Permit can be issued without conservation order _ - - - - _ _ _ Yes 112 Permit can be issued without administrative approval - Yes Appr Date 113 Can permit be approved before 15-day wait. - Yes RPC 9/6/2006 x,14 Well located within area and strata authorized by Injection Order# (put 10# in comments)_(For NA - ~15 All wells within 1!4 mile area of review identified (For service well only) NA- - 16 Pre-produced injector:. duration ofpre-production less than-3months-(Far service well. only) NA- - 17 Nonconven. gas conforms to AS31,05,030Q.1,A),Q,2.A-D) - - - - NA- - ~! 18 Conductor string provided Yes ---- -- __ 20" @ 100'. En meerin g g 19 1 Surface casingp_rotectsoll known USDWs Yes 120 CMT vol adequate to circulate on conductor & surf csg Yes Adequate excess... X121 CMT vol adequate totie-in long string to surf csg No 122 CMT will cover all known productive horizons- Yes - 1123 Casing designs adequate for C,J, B & permafrost- - Yes '124 Adequate tankage-or reserve pit Yes Glacier Drlg Rig 1, 'i25 If a re-drill, has a 10-403 for abandonment been approved - _ _ _ NA_ _ New well, ',26 Adequate wellbore separation proposed _ _ Yes '27 If diverterrequired, does it meet regulations_ - _ - - - _ _ _ _ - Yes 28 Dnikng fluid. program schematic & equip list adequate- - Yes Max MW-10.6. ppg. Appr Date 29 BOPEs, do they meet regulation Yes _ WGA 9/13/2006 1,,30 BOPE-press rating appropriate; test to-(put prig in comments). Yes Test to 3000 psi. MSP 2453 psi. x'31 Choke manifold complies w/APt RP-53 (May 84) _ - _ - - Yes _ ',32 Work will occur without operation shutdown _ _ - _ _ _ _ Yes _ 133 Is presence of H2S gas-probable _ _ - - _ No _ - Not an H2S area.- ',34 Mechanical condition of wells within AOR verified (_Forservice well only) - - - - - - NA 35 Permit can be issued wlo hydrogen sulfide measures Yes - __ - _ __ - Geology 36 Data presented on potential overpressure zones - - Yes Gas sandsthat are depleted to sl. above normal pressure expected below 4326' MD. Mud- 1~~37 Seismic analysis. of sha_llowgas-zones. - NA_ program calls for 9,1 to 10.6 ppg. mud_while drilling mte_rmediate & production hale. SFD Appr Date 1,38 Seabed condition survey (ifoff-shore) NA -- SFD 9/13/2006 I~139 Contact namelphone for weekly-progress reports. [exploratory only] - - NA_ - Geologic Date: Engineering Date ubl' Date Original application was superseded by a revised application received on Sept. 13, 2006. SFD Commissioner: Commission r: m' sio QTS ~ ~ X4(6 c~~~~. 9 /t~ U,6 - _ --~- ,(~ ~0~ •
