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209-040
1. Operations Susp Well Insp Plug Perforations Fracture Stimulate Pull Tubing Operations shutdown Performed: Install Whipstock Perforate Other Stimulate Alter Casing Change Approved Program Mod Artificial Lift Perforate New Pool Repair Well Coiled Tubing Ops Other: Pull Cap String Development Exploratory 3. Address: Stratigraphic Service 6. API Number: 7. Property Designation (Lease Number): 8. Well Name and Number: 9. Logs (List logs and submit electronic data per 20AAC25.071): 10. Field/Pool(s): 11. Present Well Condition Summary: Total Depth measured 10,278 feet N/A feet true vertical 8,557 feet N/A feet Effective Depth measured 10,207 feet N/A feet true vertical 8,486 feet N/A feet Perforation depth Measured depth See Schematic feet True Vertical depth See Schematic feet Tubing (size, grade, measured and true vertical depth) Escape Tbg 3-1/2" L-80 10,244' MD 8,523' TVD Packers and SSSV (type, measured and true vertical depth) N/A N/A N/A N/A 12. Stimulation or cement squeeze summary: Intervals treated (measured): Treatment descriptions including volumes used and final pressure: N/A 13a. Prior to well operation: Subsequent to operation: 13b. Pools active after work: 15. Well Class after work: Daily Report of Well Operations Exploratory Development Service Stratigraphic Copies of Logs and Surveys Run 16. Well Status after work: Oil Gas WDSPL Electronic Fracture Stimulation Data GSTOR GINJ SUSP SPLUG Sundry Number or N/A if C.O. Exempt: Authorized Name and Digital Signature with Date: Contact Name: Contact Email: Authorized Title: Contact Phone: Chad Helgeson, Operations Engineer N/A Sr Pet Eng: Sr Pet Geo: Sr Res Eng: WINJ WAG 628 Water-BblOil-Bbl 17. I hereby certify that the foregoing is true and correct to the best of my knowledge. Noel Nocas, Operations Manager 907-564-5278 chelgeson@hilcorp.com 907-777-8405 N/A 628 measured true vertical Packer Representative Daily Average Production or Injection Data Casing Pressure Tubing Pressure 14. Attachments (required per 20 AAC 25.070, 25.071, & 25.283) 0 Gas-Mcf MD 1 Size 134' 6 1 0 495 19 measured TVD 9-5/8" 3-1/2" STATE OF ALASKA ALASKA OIL AND GAS CONSERVATION COMMISSION REPORT OF SUNDRY WELL OPERATIONS 209-040 50-133-20586-00-00 3800 Centerpoint Drive, Suite 1400 Anchorage, Alaska 99503 Hilcorp Alaska, LLC N/A 5. Permit to Drill Number:2. Operator Name 4. Well Class Before Work: FEE FEDA028142 Kenai Gas Field / Beluga-Up Tyonek Gas Kenai Beluga Unit (KBU) 42-06X Plugs Junk measured Length Production Liner 7,091' 10,244' Casing Structural 5,370' 8,523' 7,091' 10,244' 134'Conductor Surface Intermediate 20" 13-5/8" 134' 2,508' 3,090psi 10,540psi 3,450psi 5,750psi 10,160psi 2,508' 2,166' Burst Collapse 1,950psi p k ft t Fra O s 6. A G L PG , Form 10-404 Revised 10/2022 Due Within 30 days of Operations Submit in PDF format to aogcc.permitting@alaska.gov By Grace Christianson at 8:38 am, Jun 16, 2023 Digitally signed by Noel Nocas (4361) DN: cn=Noel Nocas (4361) Date: 2023.06.15 18:10:50 - 08'00' Noel Nocas (4361) Rig Start Date End Date Cap String 6/9/23 6/9/23 PTW, JSA. Perform pre job equipment inspection. Spotted up to well. Rig up capillary truck. Pick up tension and remove cap string hanger. Calculated free weight of string 2300 lbs. Pu to 2800 lbs 80% cap string yield. 3500 lbs 100 % yield. Cap string appears to be stuck under 1500' of perfs. Slowly work up weight to 3100 lbs. Pump methanol down cap string while picking up. Pump pressure increase to 4000 psi and weight started falling off. Cap string started moving 3000-3100 lbs. Continue pump and pull method until over pulls stopped once above top perforations. Spool cap string OOH. Tagged up. Close swab valve. Pop off. Foot valve intact. Rig down cap string truck and depart for CLU-1. 06/09/2023- Friday Daily Operations: Hilcorp Alaska, LLC Well Operations Summary API Number Well Permit NumberWell Name KBU 42-06X 50-133-20586-00-00 209-040 Lease: State:Alaska Country: (TVD): 6/14/2023 Completion Fluid: Kenai Beluga Unit 42-6x Kenai Peninsula Borough 7/28/2009 ~ 0.5º Last Revison Date: 5,830' - 7,540' ~1.7º / 100 ft @ 200' Revised by: 7,551' - 9,261' Dated Completed: Perforations (MD): Angle/Perfs: D Ambruz Angle @ KOP and Depth: Municipality: Well Name & Number:Kenai Gas Field USA Excape System Details - 10 Excape modules placed along with 2 chemical injection mandrels -Red contol line fires modules 6 - 10 & chemical injection mandrel -Green control line fires Modules 1 - 5 & chemical injection mandrel Middle Beluga Perfs MD (RKB): Module 10 = 7,555' - 7,565' Lower Beluga Perfs MD (RKB): Module 9 = 7,849' - 7,859' Module 8 = 7,906' - 7,916' Module 7 = 8,360' - 8,370' Module 6 = 8,560' - 8,570' Module 5 = 8,700' - 8,710' Module 4 = 8,869' - 8,879' Tyonek Perfs MD (RKB): Module 3 = 8,989' - 8,999' Module 2 = 9,029' - 9,039' Module 1 = 9,247' - 9,257' Top of 3-1/2" Tubing Cement @ 5,840' MD Excape System Flappers MD: Six Reclosing and one Disappearing Flapper Valves *Modules 1,3 and 9 = no flapper *Modules 3 and 2 tied together with flapper below Mod. 2 *Module 9 and 8 tied together wih flapper below Mod. 8 Module 10 = 7,575' Module 9 = NA' Module 8 = 7,926' Module 7 = 8,380' Module 6 = 8,580' Module 5 = 8,720' Module 4 = 8,889' Module 3 = NA' Module 2 = 9,049' Module 1 = NA KBU 42-6x Pad 41-7 537' FNL, 1,036' FEL, Sec. 7, T4N, R11W, S.M. TD 10,278' MD 8,557' TVD PBTD 10,207' MD 8,486' TVD Conductor 20" X-95 129.4 ppf Top Bottom MD 0' 134' TVD 0' 134' Surface Casing 13-3/8" K-55 68 ppf Top Bottom MD 0' 2,508' TVD 0' 2,166' 16" Hole Cmt w/ 606 sks (255 bbls) of 12.0 ppg, Type 1 cmt. 95 sks (40 bbls) cmt returned to surface with 100% returns. Intermediate Casing 9-5/8" L-80 40 ppf Butt Top Bottom MD 0' 7,091' TVD 0' 5,370' 12-1/4" Hole Cmt w/ 366 sks (219 bbls) of 10.5 ppg Class G. Bumped plug, floats held. No returns to suface during entire cementing process. Production Tubing 3-1/2" L-80 9.3 ppf Mod EUE Top Bottom MD 0' 10,244' TVD 0' 8,523' 8-1/2" Hole Cmt w/ 1,431 sks (285 bbls) 15.8 ppg, Class G, 100% returns during entire job. Permit #:209-040 API #:50-133-20586-00-00 Prop. Des:A - 028142 KB elevation:89' (23' AGL) Latitude:60º 26' 38.035" N Longitude:151º 04' 37.405' W X: Y: Spud:4/16/2009 15:00 hrs TD:5/5/2009 17:00 hrs Rig Released:5/13/2009 24:00 hrs PA #: Chemical Injection Mandrels @ 7,521' MD, opens @ ??? psi & @ 8,672' MD, opens @ ??? psi Tagged @ 9,820' (8/29/09) with 2.5" dummy caliper • 0 Image Project Well History File Cover Page XHVZE This page identifies those items that were not scanned during the initial production scanning phase. They are available in the original file, may be scanned during a special rescan activity or are viewable by direct inspection of the file. Q0? - 0 4. 0 Well History File Identifier Organizing (done) ❑ Two -sided 111 I 11111 ❑ Rescan Needed 111 I R 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: ' C 1 I /s/ IY Project Proofing Itt IIIJIIIIIli 11111 BY: Maria Date: V 011 1 1 /s/ Wip Scanning Preparation / x 30 = O., /0 + 1 = TOTAL PAGES A 1 (Count does not include cover sheet) BY: Maria Date: AI/ O J I 1 /s/ Production Scanning 111 1111111 II 11111 Stage 1 Page Count from Scanned File: a I a. (Count does include cover heet) Page Count Matches Number in Scanning Preparation: YES NO BY: Maria Date: 3// of l r /s/ 171 P 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. 1 1 111 ReScanned 111111111111111 BY: Maria Date: /s/ Comments about this file: Quality Checked III 1111111111111 III 10/6/2005 Well History File Cover Page.doc DATA SUBMITTAL COMPLIANCE REPORT 4/27/2011 Permit to Drill 2090400 Well Name /No. KENAI BELUGA UNIT 42 -6X Operator MARATHON OIL CO API No. 50- 133 - 20586 -00 -00 MD 10278 TVD 8557 Completion Date 7/29/2009 Completion Status 1 -GAS Current Status 1 -GAS UIC N REQUIRED INFORMATION Mud Log No Samples No Directional Survey DATA INFORMATION Types Electric or Other Logs Run: Text to long for this data field. See 10 -407 (data taken from Logs Portion of Master Well Data Maint Well Log Information: Log/ Electr • Data Digital Dataset Log Log Run Interval OH / T Med /Frmt Number Name Scale Media No Start Stop CH Received Comments Rpt Report: Final Well R Open 8/27/2009 End of Well Rep, Tab of Con, Mud Equip, Well 1 Details, Geo Data, Drill Data, Daily Reps c'ED C Las 18444 ✓Report: Final Well R 7091 10278 Open 8/27/2009 OH LAS, End of Well Rep, Tab of Con, Mud Equip, I Well Details, Geo Data, 1 Drill Data, Daily Reps g Mud Log 2 Col 132 10278 Open 8/27/2009 MD Formation Log g Mud Log 2 Col 132 10278 Open 8/27/2009 TVD Formation Log o Mud Log 2 Col 132 10278 Open 8/27/2009 MD Drilling Dynamics og Mud Log 2 Col 132 10278 Open 8/27/2009 TVD Drilling Dynamics t,k6g Induction /Resistivity 25 Col 5370 8557 Open 8/27/2009 TVD Array Induction, Vectar og Induction /Resistivity 25 Col 7091 10276 Open 8/27/2009 MD Array Induction, Vectar • 'Cog Induction /Resistivity 25 Col 7091 10276 Open 8/27/2009 MD Array Induction og Induction /Resistivity 25 Col 7091 10276 Open 8/27/2009 MD Compact Quad Combo, Quicklook og Density 5 Col 7091 10230 Open 8/27/2009 MD Dens Neutron, Sonic, Water Sat g Caliper log 5 Col 7091 10226 Open 8/27/2009 MD Hole Volume, Caliper g Neutron 25 Col 7091 10230 Open 8/27/2009 MD Photo Dens, Dual Space Neutron 'I..L/6g Sonic 25 Col 7091 10257 Open 8/27/2009 MD Comp Sonic Log Formation Tester 5 Col 7563 9263 Open 8/27/2009 MD Form tester g Cement Evaluation 2 Blu 5650 10062 Case 8/27/2009 Dual Radial CBL, GR, CCL, EXPRO Wireline DATA SUBMITTAL COMPLIANCE REPORT 4/27/2011 Permit to Drill 2090400 Well Name /No. KENAI BELUGA UNIT 42 -6X Operator MARATHON OIL CO API No. 50- 133 - 20586 -00 -00 MD 10278 TVD 8557 Completion Date 7/29/2009 Completion Status 1 -GAS Current Status 1 -GAS UIC N Well Cores /Samples Information: Sample Interval Set Name Start Stop Sent Received Number Comments ADDITIONAL INFORMATION Well Cored? YrID Daily History Received? 6,N Chips Received? - Y - / - 11 / Formation Tops v' N Analysis `Y Received? Comments: Compliance Reviewed By: _ Date: • • Marathon Alaska Production LLC Alaska Asset Team M Marathon P.O. Box 1949 MaRATHON Alaska Production LLC Kenai, AK 99611 ® Telephone 907/283 -1371 Fax 907/283 -1350 October 8, 2009 Mr. Winton Aubert RECEIVED Alaska Oil & Gas Conservation Commission 333 W 7 Ave OCT 0 9 2009 Anchorage, Alaska 99501 Alaska 011 &Gas Cons. Commission Anchorage Reference: 10 -404 Report of Sundry Well Operations Field: Kenai Gas Field Well: Kenai Beluga Unit 42 -6x Dear Mr. Aubert: Attached for your records is the10 -404 Report of Sundry Well Operations for KBU 42 -6x well. This report covers the work performed to install a capillary string which is intended to assist with the fluid removal process. The string was installed on October 1, 2009 and set at a depth of 9,255' MD. Please contact me at (907) 283 -1371 if you have any questions or need additional information. Sincerely, Pee PAL' Kevin J. Skiba Regulatory Compliance Technician Enclosures: 10 -404 Report of Sundry Well Operations cc: Houston Well File Well Schematic Kenai Well File Operations Summary KJS aoq-040 Vu& ^ STATE OF ALASKA tot/4100 0 ALASK IL AND GAS CONSERVATION COMMIS ION REPORT OF SUNDRY WELL OPERATIONS 1. Operations Abandon U Repair Welt j Plug Perforations U Stimulate Other U Install capillary Performed: Alter Casing ❑ Pull TubinC Perforate New Pool ❑ Waiver ❑ Time Extension ❑ string Change Approved Program ❑ Operat. Shutdown❑ Perforate ❑ Re -enter Suspended Well ❑ 2. Operator 4. Well Class Before Work: \. Permit to Drill Number: Name: Marathon Oil Company Development El Exploratory 209 -040 3. Address: PO Box 1949 Stratigraphic ❑ Service ❑ API Number: Kenai Alaska, 99611 -1949 �� 50- 133 - 20586 -00 -00 7. KB Elevation (ft): 9. Well Nar and Number: /did? (23' AGL) Kenai Beluga Unit 42 -6x 8. Property Designation: '''Field/Pool(s): A - 028142 Kenai Gas Field / Beluga & Tyonek Pools 11. Present Well Condition Summary: Total Depth measured 10,278' feet Plugs (measured) NA true vertical 'N 8,557' feet Junk NA ���'I��aii a Effective Depth measured 10,207' feet OCT 0 9 2009 true vertical 8,486' feet Alaska Oil & Gas Cons. mission Casing Length Size MD TVD Anchorage Collapse Structural Conductor 111' 20" 134' / 134' Surface 2,485' 13 -5/8" 2,508' 2,166' 3,450 psi 1,950 psi Intermediate 7,068' 9 -5/8" 5,370' 5,750 psi 3,090 psi Production 10,221' 3 -1/2" 10,244' 8,523' 10,160 psi 10,540 psi Liner Perforation depth: Measured depth: 7,845' - 9,261' True Vertical depth: 5,830' - 7,540' Excape Tubing 3 -1/2" L -80 10,244' Tubing: (size, grade, and MD) Capillary String 3/8" 2205 9,255' — Packers and SSSV (type and measured depth) NA NA 12. Stimulation or cement squeeze summary: Intervals treated (measured): A 3/8" stainless steel capillary string was installed at a setting depth of 9,255' MD. 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 2,475 78 1 375 Subsequent to operation: 0 2,410 - 1 330 14. Attachments: T5,_Well Class after work: Copies of Logs and Surveys Run \Well Exploratory ❑ Development El Service ❑ Daily Report of Well Operations X Status after work: Oil ❑ Gas 111 WAG ❑ GINJ ❑ WINJ ❑ WDSPL ❑ 17. I hereby certify that the foregoing is true and correct to the best of my knowledge. Sundry Number or N/A if C.O. Exempt: 309 -263 Contact Kevin Skiba (907) 283 -1371 Printed Name Kevin J. Skiba 4 Title Regulatory Compliance Technician Signature i / L4 ,„ 4 1 4 6, 4,,_ Phone (907) 283 -1371 Date October 8, 2009 f !29I.Y ( 63/07 i . Form 10 -404 Revised 04/2006 Submit Original Only • • Nl Marathon Operations Summary Report � �� � Well Name: KENAI BELUGA UNIT 42 -6X Pa Daily Operations Report Date: 919/2009 Job Category: COMPLETION 24 H r Strrimary • Ruri PLT, turn well over to production. opa StartTine EldThle Our OM Ord cock ActLIVCccle GUMS Trolble Cale Canmelt 12:30 13:30 1.00 SAFETY MTG AF Arrive location, spot equipment,obtain work permit, hold PJSM - topics discussed - Review JSA's, assign jobs, emergency numbers, muster areas, active gas production area red lights for fire, blue lights for gas emission, sirens, muster area etc. 13:30 14:30 1 .00 RURD ELEC AF Rig up wireline unit, crane unit and lubricator. 14:30 15:30 1 .00 TEST TREE AF Test BOP and lubricator to 2000# - test good. 15:30 06:00 14.50 RUNPUL ELEC AF Run PLT. Initial temperature 64 deg F, Pressure - 599, Rate 1 .9MMCFD @624 psi with approx. 82.4 BNVPD.15:45 hours - spinner failed. POOH - replaced spinner. Surface pressure - 725 psi, Temp - 60 deg F. 17:55 hours start down pass at 60 fpm. 18:30 end down pass at 9400 feet, start up pass at 60 fpm.19:05 hours start down pass at 90 fpm. 19:30 hours end down pass at 9400', start up pass at 900fpm. 19:55 hours - end up pass, start down pass at 120 fpm. 20:50 - End down pass at 9400 feet, at 120 fpm. Start shut in 22:18 - start shut in pass 23:20 - Run 2 hour shut in pass 01:00 - Run 4 hour shut in pass 05:00 - run 8 hour shut it pass POOH Report Date: 9/10/2009 Job Category: COMPLETION 24 H r Srmm3ry Run PLT, turn well over to production group Opa StartTrne EYdTine DIrOrs) oppCale main/ cc.: Slat's TrorbleCCde Canme 06:00 07:00 1 .00 RUNPUL ELEC AF continue pulling PLT tool out of wellbore. 07:00 08:00 1 .00 RURD ELEC AF Rig down wireline unit, crane truck and BOP /lubricator 08:00 08:15 0.25 SECURE WELL AF Secure wellhead, leave location, sign out and turn in work permit. Report Date: 10/n009 Job Category: R&M MAINTENANCE 21 H r SImm3ry Rig up BJ Chemical Capillary siring coiled tubing unit. Install 3/8" capillary string for injecting foam to a depth of 9255' MD. Capillary string is 3/8" OD. with a wall thickness of 0.049" and BHA has a 2.25" centralizer on the Fluid Control Valve. The Fluid Control Valve has been set at 3380# opa StartTine Ertl Time Drr(rli OppCak ActLIVCcbe Stags Trouble Cak Came it 07:30 08:15 0.75 SAFETY AMMTG AF Arrive location, obtain work permit, hold PJSM - topics discussed - environmental standdown, active gas production pad, blue lights for gas emission, red lights for fire, sirens for audible, muster area(s), emergency numbers, emergency vehicles, review JSA's and assign jobs. Discussed slips, trips and falls, working under loads, hand safety, buddy rule, three second rule and environmental spills. 08:15 11:15 3.00 RURD COIL AF Rig up coiled tubing unit. Pull test BHA - to 600# - test successful. Pressure test tree to 1000# - test successful. Run cap siring into hole 11:15 13:15 2.00 RUNPUL COIL AF Run 3/8" capillary string into well to 9265' MD. Pull up to 9255' setting depth .. arid set slips and packoff. Release injector head and rrlove unit off wellhead. 13:15 14:15 1 .00 RURD COIL AF rig down coiled tubing unit. Set injector head back or cradle on truck and clean up around wellhead 14:15 14:30 0.25 SECURE WELL AF secure wellhead, sign out and leave location. Prepare well operations turnover form. www.peloton.com Report Printed: 10/6/2009 0 42 -6x e Permit #: 209 -040 KB API #: 50- 133 - 20586 -00 -00 Pad 41 -7 Prop. Des: A- 028142 537' FNL, 1,036' FEL, MARATHON KB elevation: 89' (23' AGL) Latitude: 60° 26' 38.035" N Sec. 7, T4N, R11 W, S.M. Longitude: 151° 04' 37.405' W Conductor X: 20" X -9 129.4 ppf Top Bottom Y: MD 0' 134' Spud: 4/16/2009 15:00 hrs TVD 0' 134' TD: 5/5/2009 17:00 hrs _ i Rig Released: 5/13/2009 24:00 hrs # Surface Casing PA #: 13 -318" K -55 68 ppf Top Bottom MD 0' 2,508' TVD 0' 2,166' 16" Hole Cmt wl 606 sks (255 bbls) of 12.0 ppg, Type 1 cmt. 95 sks (40 bbls) cmt Top of 3 - 1/2" Tubing Cement E ' ' returned to surface with 100% returns. • 5,840 MD ` @ � Intermediate Casing 9 -5/8" L -80 40 ppf Butt Top Bottom MD 0' 7,091' Chemical Injection Mandrels TVD 0' 5,370' @ 7,521' MD, opens @ ? ?? psi 1 & A 12 - 1/4" Hole Cmt wl 366 sks (219 bbls) of @ 8,672' MD, opens @ ? ?? psi , .. : 10.5 ppg Class G. Bumped plug, floats held. 4 ` No returns to suface during entire cementing l process. w Production Tubing Excape System Flappers MD: r 3 -112" L -80 9.3 ppf Mod EUE Module 10 = 7,575' � . ` '- Top Bottom 7 MD 0' 10,244' Module 9 = 7,870' 4 -1 t TVD 0' 8,523' Module 8 = 7,926' 7, Module 7 = 8,382' -1 f yt, 8 -1/2" Hole Cmt wl 1,431 sks (285 bbls) Module 6 = 8,585' -in f I : , 15.8 ppg, Class G, 100% returns during Module 5 = 8,725' J "' entire job. Module 4 = 8,895' - Ill Module 3 = 9,015' ) 44 Excape System Details Module 2 = 9,056' C i `di - 10 Excape modules placed along Module 1 = NA k'w with 2 chemical injection mandrels 11 - ,- -: contol line fires modules 6 - 10 C ., I Ij 1 & chemical injection mandrel control line fires Modules 1 - 5 Capillary Tubing (Installed 10/1/09) '• I' 44 & chemical injection mandrel ).-'. Middle Beluga Perfs MD (RKB): 1 V 318" OD 2205 0.049" Ill C y+ Module 10 = 7,551' - 7,561' Stainless Steel Wall Thickness ll 4 , Lower Beluga Perfs MD (RKB): �` C - Module 9 = 7,845' - 7,855' Top Bottom t '. Module 8 = 7,901' - 7,911' MD 0' 9,255' i (!. Module 7 = 8,358' - 8,368' TVD 0' 7,534' y ',; t'l) Module 6 = 8,559' - 8,569' 4 * Mt ell Module 5 = 8,701' - 8,711' Module 4 = 8,871' - 8,881' Tag 8/29/09 @ 9,820' Tyonek Perfs MD (RKB): 2.5" dummy caliper TD PBTD Module 3 = 8,991' - 9,001' 10,278' MD 10,207' MD Module 2 = 9,032' - 9,042' 8,557' TVD 8,486' TVD Module 1 = 9,251' - 9,261' Well Name & Number: Kenai Beluga Unit 42 -6x Lease: Kenai Gas Field Municipality: Kenai Peninsula Borough State: Alaska I Country:) USA Perforations (MD): 7,551' - 9,261' (TVD): 5,830' - 7,540' Angle /Perfs: - 0.5° Angle @ KOP and Depth: - 1.7° / 100 ft @ 200' Dated Completed: 7/28/2009 Completion Fluid: Revised by: Kevin Skiba _ Last Revison Date: 10/7/2009 • • • Marathon Alaska Production LLC Alaska Asset Team M Marathon P.O. Box 1949 MARATHON Alaska Production LLC Kenai, AK 99611 Telephone 907/283 -1371 Fax 907/283 -1350 August 24, 2009 Mr. Winton Aubert Alaska Oil & Gas Conservation Commission RECLIVED 333 W 7 Ave .U13 2 6 2009 Anchorage, Alaska 99501 C triS. Commission Reference: 10 -421 Open Flow Potential Test Report Field: Kenai Gas Field Well: Kenai Beluga Unit 42 -6x Dear Mr. Aubert: Enclosed is the Open Flow Potential Test Report, 10 -421, for well KBU 42 -6x. This well was spud on April 16, 2009 and completed into the Beluga and Tyonek formations. The potential flow rate was determined from a single point test. Please call me at (907) 283 -1371 if you have any questions or need additional information. Sincerely, X .tv - ek-d - c 9 • Kevin J. Skiba Regulatory Compliance Technician Enclosures: 10 -421 Open Flow Report cc: Houston Well File See Attachment List Kenai Well File 4,0 KJS STATE OF ALASKA -9-<(0 ALASKAL AND GAS CONSERVATION COMMISPN 1a' GAS WELL OPEN FLOW POTENTIAL TEST REPORT 9lzlL°°it 1 a. Test: U Initial LJ Annual LJ Special 1b. Type Test: U Stabilized U Non Stabilized U Multipoint ❑ Constant Time ❑ Isochronal 0 Other 2. Operator Name: 5. Date Completed: 11. Permit to Drill Number: Marathon Alaska Production LLC 7/28/2009 209 - 040 3. Address: 6. Date TD Reached: 12. API Number: PO BOX 1949 Kenai, Alaska 99611 -1949 05/05/2009 50 - 133 - 20586 - 00 - 00 4a. Location of Well (Governmental Section): 7. KB Elevation (ft): 13. Well Name and Number: Surface: 537' FNL, 1,036' FEL, Sec. 7, T4N, R11W, S.M. 23' KB , 89' above MSL Kenai Beluga Unit 42 - 6x Top of Productive Horizon: 8. Plug Back Depth(MD +TVD): 14. Field /Pool(s): 2,175' FNL, 578' FEL, Sec. 6, T4N, R11W, S.M. 10,207' MD, 8,486' TVD Total Depth: 9. Total Depth (MD + TVD): Kenai Gas Field / Beluga & Tyonek Pools 2,163' FNL, 580' FEL, Sec. 6, T4N, R11W, S.M. 10,278' MD, 8,557' TVD 4b. Location of Well (State Base Plane Coordinates): 10. Land Use Permit: 15. Property Designation: Surface: x- 274,864.00 Y 2,361,477.00 Zone- 4 - A - 028142 TPI: x- 275,323.00 Y 2,365,201.00 Zone- 4 16. Type of Completion (Describe): Total Depth: x - 275,315.00 Y - 2,365,197.00 Zone 4 Excape Completion Process (Multi - Zone, Frac Stimulated) 17. Casing Size Weight per foot, Ib. I.D. in inches Set at ft. 19. Perforations: From To 3.500" 9.3ppf, L - 80 2.992" 10,244' (10 Excape Modules in MD) 7,551' - 7,561', 18. Tubing Size Weight per foot, Ib. I.D. in inches Set at ft. 7,845' - 7,855', 7,901' - 7,911', 8,358' - 8,368', 8,559' - 8,569', 8,701' - 8,711', 8,871' - 8,881', N/A N/A N/A N/A 8,991' - 9,001', 9,032' - 9,042', 9,251' - 9,261' 20. Packer set at ft: 21. GOR cf /bbl: 22. API Liquid Hydrocardbons: 23. Specific Gravity Flowing Fluid (G): N/A - - 0.56 24a. Producing through: 24b. Reservoir Temp: 24c. Reservoir Pressure: 24d. Barometric Pressure (Pa): ❑ Tubing 0 Casing 101 F 334 psia @ Datum 7,462 TVDSS 14.73 psia 25. Length of Flow Channel (L): Vertical Depth (H): Gg: % CO % N2: % HA: Prover: Meter Run: Taps: 7,528' MD 4,589' TVD 0.56 0.364 0.193 0 Facility 26. FLOW DATA TUBING DATA CASING DATA Prover Choke Pressure Diff. Temp. Pressure Temp. Pressure Temp. Duration of Flow No. Line )( Orifice psig Hw F psig F psig F Hr. Size (in.) Size (in.) i i 1. 3.826 X 1.000 295 27 51 - - - - ' ' , -072 ` ` 2. X 3. X ;.; L 2 :; ,'''..' -' 4. X 5. X ; ,a ,;, .. ._ , ... .Y ,, : :..,.. Basic Coefficient Flow Temp. Super Comp. Pressure Gravity Factor Rate of Flow No. (24 -Hour) hwPm Factor Factor Q Mcfd Fb or Fp Pm Ft Fg Fpv 1. 67.371 37.108 309.730 1.000 1.336 1.131 2500 2. 3. 4. 5. for Separator for Flowing Temperature No. Pr T Tr z Gas Fluid Gg G 1. 0.460 511.000 1.489 0.782 0.560 N/A 2. 3. Critical Pressure 673.1 4. Critical Temperature 343.2 5. Form 10 -421 Revised 1/2004 CONTINUED ON 7. + . 1 : 'IL EP 0 2 2009 Submit in Duplicate • Pc 1998 Pc 3992139 ( Pf Pf No. Pt Pte Pc Pw Pw Pc Ps Ps Pf -Ps 1 • 534 284867.71 2. 3. 4. 5. 25. AOF (Mcfd) 2,662 n 0.750 Remarks: This is an EXCAPE Completion. Well was not shut in during test. SIWHP was estimated at 1983 psig based on MFT pressures taken when logging. I hereby ce 'fy that the foregoing is ru= :nd correct to the best of my knowledge. Signed !�� /4, / � � ..,'/ % Title Regulatory Compliance Technician Date 8/24/2009 f DEFINITIONS OF SYMBOLS AOF Absolute Open Flow Potential. Rate of Flow that would be obtained if the bottom hole pressure opposite the producing face were reduced to zero psia Fb Basic orifice factor Mcfd/ hwPm Fp Basic critical flow prover or positive choke factor Mcfd /psia Fg Specific gravity factor, dimensionless Fpv Super compressibility factor = dimensionless Ft Flowing temperature factor, dimensionless G Specific gravity of flowing fluid (air= 1.000), dimensionless Gg Specific gravity of separator gas (air = 1.00), dimensionless GOR Gas -oil ratio, cu. ft. of gas (14.65 psia and 60 degrees F) per barrel oil (60 degrees F) hw Meter differential pressure, inches of water H Vertical depth corresponding to L, feet (TVD) L Length of flow channel, feet (MD) n Exponent (slope) of back - pressure equation, dimensionless Pa Field barometric pressure, psia Pc Shut -in wellhead pressure, psia Pf Shut -in pressure at vertical depth H, psia Pm Static pressure at point of gas measurement, psia Pr Reduced pressure, dimensionless Ps Flowing pressure at vertical depth H, psia Pt Flowing wellhead pressure, psia Pw Static column wellhead pressure corresponding to Pt, psia Q Rate of flow, Mcfd (14.65 psia and 60 degrees F) Tr Reduced temperature, dimensionless T Absolute temperature, degrees Rankin Z Compressibility factor, dimensionless Recommended procedures for tests and calculations may be found in the Manual of Back- Pressure Testing of Gas Wells, Interstate Oil Compact Commission, Oklahoma City, Oklahoma. Form 10 -421 Revised 1/2004 Side 2 • 1 Marathon Alaska Production LLC Alaska Asset Team M Marathon P.O. Box 1949 MARATHON Alaska Production LLC Kenai, AK 99611 Telephone 907/283 -1371 Fax 907/283 -1350 At,G 2 6 2rt i9 August 24, 2009 Mr. Winton Aubert Alaska Oil & Gas Conservation Commission 333 W 7 Ave Anchorage, Alaska 99501 Reference: 10 -407 Well Completion Report and Log Field: Kenai Gas Field Well: Kenai Beluga Unit 42 -6x Dear Mr. Aubert: Submitted for your records is the Well Completion Report and Log for KBU 42 -6x well. KBU 42 -6x is a newly drilled Kenai Gas Field well, configured with ten Excape modules. Modules were placed across, both, the Beluga and Tyonek formations. Work, on this well, was performed under Permit to Drill #209 -040 and two sundry approvals, #309 -164 and #309 -174. Please contact me at (907) 283 -1371 if you have any questions or require additional information. Sincerely, JAr1/''l/ 6 kip Kevin J. Skiba Regulatory Compliance Technician Enclosures: 10 -407 Well Completion Report & Log cc: Houston Well File Reference Attachment List Kenai Well File KJS :I': z -- F4 , STATE OF ALASKA � �r ,��ry.� W 7� ALASKA L AND GAS CONSERVATION COMMISSI N ` 2 : 4``1 i WELL COMPLETION OR RECOMPLETION REPORT AND LOG. ;..:r;f f1--' f =} 011 ❑ Gas 0 Plugged ❑ Abandoned ❑ Suspended ❑ 1b. Well Class`. r . 20AAC 25.105 20AAC 25.110 Development 0 Fzploratory ❑ GINJ❑ WINJ WDSPL WAG Ell Other El No. of Completions: 1 Service ❑ Stratigraphic Test ❑ 2. Operator Name: 5. Date Comp., Susp., or 12. Permit to Drill #: 209 - 040 Marathon Oil Company Aband.: 72009 Sundry #: 309 -164 4,9 309 -174 3. Address: PO Box 1949 6. Date Spudded: 13. API Number: Kenai Alaska, 99611 -1949 4/16/2009 50-133-20586-00-00 4a. Location of Well (Governmental Section): 7. Date TD Rea9bed: 6 14. Well Name and Number: Surface: 537' FNL, 1,036' FEL, Sec. 7, T4N, R11W, S.M. 5,r /2009 ./(4 Kenai Beluga Unit 42 -6x Top of Productive Horizon: 8. KB (ft above MSL): 23' 15. Field /Pool(s): 2,175' FNL, 578' FEL, Sec. 6, T4N, R11W, S.M. Ground (ft MSL): 66' Kenai Gas Field / Beluga & Tyonek Total Depth: 9. Plug Back Depth(MD +TVD): 2,163' FNL, 580' FEL, Sec. 6, T4N, R11W, S.M. 10,207' MD, 8,486' TVD Pools 4b. Location of Well (State Base Plane Coordinates, NAD 27): 10. Total Depth (MD + TVD): 16. Property Designation: Surface: x 274,864.00 y- 2,361,477.00 Zone- 4 10,278' 8,557' A - 028142 TPI: x- 275,323.00 y- 2,365,201.00 Zone- 4 11. SSSV Depth (MD + TVD): 17. Land Use Permit: Total Depth: x- 275,315.00 y- 2,365,197.00 Zone- 4 NA 18. Directional Survey: Yes 10 No ❑ 19. Water Depth, if Offshore: 20. Thickness of Permafrost (TVD): (Submit electronic and printed information per 20 AAC 25.050) NA (ft MSL) NA 21. Logs Obtained (List all logs here and submit electronic and printed information per 20 AAC 25.071): Dual Radial Cement Bond Gamma Ray /CCL, Density Neutron Sonic Water Saturation, Array Inguction Vectar Processing MD, Array Induction MD, Photo Dual Spaced Neutron MD, Hole Caliper MD, Compact Quad -Combo QuikLook, Compensated Sonic MD, Formation Tester MD 22. CASING, LINER AND CEMENTING RECORD WT. PER SETTING DEPTH MD SETTING DEPTH TVD AMOUNT CASING FT GRADE TOP BOTTOM i TOP BOTTOM HOLE SIZE CEMENTING RECORD PULLED 20" 129.4 X -95 0' 134' 0' 134' Driven NA / NA 13 -5/8" 68 K -55 0' 2,508' 0' 2,166' 16" 606 sks .. 1 5 sk 9 -5/8" 40 L -80 0' 7,091' 0' 5,370' 12 -1/4" 366 sks / 0 sks 3 -1/2" 9.3 L -80 0' 10,244' 0' 8,523' 8 -1/2" 1,431 sks / 0 sks 23. Open to production or injection? Yes Q No ❑ If Yes, list each 24. TUBING RECORD interval open (MD +TVD of Top & Bottom; Perforation Size and Number): SIZE DEPTH SET (MD) PACKER SET (MD) MD TVD Perf Size # / ft 3 -1/2" 10,244' NA /' 2 r'kv 7,551' - 7,561' 4,612' - 4,621' 0.28" 6 spf 7,845' - 7,855' 4,993' - 5,002' 0.28" 6 spf 25. ACID, FRACTURE, CEMENT SQUEEZE, ETC. 7,901' - 7,911' 5,041' - 5,051' 0.28" 6 spf DEPTH INTERVAL (MD) AMOUNT AND KIND OF MATERIAL USED 8,358' - 8,368' 5,154' - 5,164' 0.28" 6 spf 7,551' - 7,561' 29,050# of 20/40 sand & 3,762# of Flex sand 8,559' - 8,569' 5,271' - 5,281' 0.28" 6 spf 7,845 - 7,911' 19,558# of 20/40 sand & 2,336# of Flex sand 8,701' - 8,711' 5,376' - 5,386' 0.28" 6 spf 8,358' - 8,368' 18,165# of 20/40 sand & 1,965# of Flex sand 8,871' - 8,881' 5,428' - 5,438' 0.28" 6 spf 8,559' - 8,569' 22,269# of 20/40 sand & 1,140# of Flex sand 8,991' - 9,001' 5,491' - 5,501' 0.28" 6 spf 8,701' - 8,711' 17,314# of 20/40 sand 9,032' - 9,042' 5,536' - 5,546' 0.28" 6 spf 8,871' - 8,881' 5,149# of 20/40 sand i 9,251' - 9,261' 5,615' - 5,625' 0.28" 6 spf 8,991 - 9,042' 17,792# of 20/40 sand 9,251' - 9,261' 11,550# of 20/40 sand 26. PRODUCTION TEST Date First Production: 8/2/2009 Method of Operation (Flowing, gas lift etc.): Flowing Date of Test: Hours Tested: Production for Oil -Bbl: Gas -MCF: Water -Bbl: Choke Size: Gas -Oil Ratio: 8/5/2009 24 Test Period . 0 2,037 126.5 64/64 100% Gas Flow Tubing Casing Press: Calculated Oil -Bbl: Gas -MCF: Water -Bbl: Oil Gravity - API (corr): Press. - 579 24 -Hour Rate - 0 2,037 126.5 NA 27. CORE DATA Conventional Core(s) Acquired? Yes ❑ No El Sidewall Cores Acquired? Yes ❑ No 10 If Yes to either question, list formations and intervals cored (MD +TVD of top and bottom of each), and summarize lithology and presence of oil, gas or water ,, i ;, 'I'; ;i , (submit separate sheets with this form, if needed). Submit detailed descriptions, core chips, photographs and laboratory analytical results per 20 AAC 25.071., , Form 10 -407 Revised 2/2007 CONTINUED ON REVERSE t " " Pr y:_ L• 0 � 200 G 28. GEOLOGIC MARKERS (List all formations and markecountered): 29. FORMATION TESTS NAME MD TVD Well tested? UYes UNo yes, list intervals and formations tested, briefly summarizing test results. Attach separate sheets to this form, if needed, and submit Permafrost - Top detailed test information per 20 AAC 25.071. Permafrost - Base M. Beluga 7,109 5,398 L. Beluga 7,790 6,070 Top Tyonek 8,950 7 229 A Multi- formation test was performed across the interval of 7,840' MD to 9,263' MD. Data was collected from 51 locations across the test interval. Results of the test are 72 -8 Sd 8,990 7,270 provided on the accompanying Formation Tester Test Summary documentation. 73 -1 Sd 9,030 7,310 75 -8 Sd 9,310 7,588 76 -7 Sd 9,430 7,710 78 -2 Sd 9,550 7,829 80 -8 coal 9,830 8,109 84 -6 Sd 10,140 8,420 Formation at total depth: 84 -6 10,278 8,557 30. List of Attachments: See Attachment List 31. I hereby certify that the foregoing is true and correct to the best of my knowledge. Contact: Kevin Skiba (907) 283 - 1371 Printed Name: Craig L. Rang Title: Production Engineer r Signature: Phone: (907) 283 - 1372 Date: August 24, 2009 INSTRUCTIONS General: This form is designed for submitting a complete and correct well completion report and log on all types of lands and leases in Alaska. Submit a well schematic diagram with each 10 -407 well completion report and 10 -404 well sundry report when the downhole well design is changed. Item la: Classification of Service wells: Gas Injection, Water Injection, Water - Alternating -Gas Injection, Salt Water Disposal, Water Supply for / njection, Observation, or Other. Multiple completion is defined as a well producing from more than one pool with production from each pool completely segregated. Each segregated pool is a completion. Item 4b: TPI (Top of Producing Interval). Item 8: The Kelly Bushing and Ground Level elevations in feet above mean sea level. Use same as reference for depth measurements given in other spaces on this form and in any attachments. Item 13: The API number reported to AOGCC must be 14 digits (ex: 50- 029 - 20123- 00 -00). Item 20: Report true vertical thickness of permafrost in Box 20. Provide MD and TVD for the top and base of permafrost in Box 28. Item 22: Attached supplemental records for this well should show the details of any multiple stage cementing and the location of the cementing tool. Item 23: If this well is completed for separate production from more than one interval (multiple completion), so state in item 1, and in item 23 show the producing intervals for only the interval reported in item 26. (Submit a separate form for each additional interval to be separately produced, showing the data pertinent to such interval). Item 26: Method of Operation: Flowing, Gas Lift, Rod Pump, Hydraulic Pump, Submersible, Water Injection, Gas Injection, Shut -in, or Other (explain). Item 27: Provide a listing of intervals cored and the corresponding formations, and a brief description in this box. Submit detailed description and analytical laboratory information required by 20 AAC 25.071. Item 29: Provide a listing of intervals tested and the corresponding formation, and a brief summary in this box. Submit detailed test and analytical laboratory information required by 20 AAC 25.071. Form 10 -407 Revised 2/2007 • KBU 42 -6x Kenai Gas Field Attachment List End of Well Report Well Schematic Directional Survey Operations Summary Multi- formation Tester Test Summary Logs • Density Neutron Sonic Water Saturation (5 -5 -09) • Array Induction Vectar Processing MD (5 -5 -09) • Array Induction MD (5 -5 -09) • Array Induction TVD (5 -5 -09) • Photo Density Dual Spaced Neutron MD (5 -5 -09) • Hole Volume Caliper MD (5 -5 -09) • Compact Quad -Combo QuikLook (5 -5 -09) • Compensated Sonic MD (5 -5 -09) • Formation Tester MD (5 -5 -09) • Dual Radial Cement Bond Gamma Ray /CCL (5 -5 -09) Compact Disc VI< et) tit � t i • Directional Survey • Wireline Log Data • Mud Log Data • Cement Bond Log Data f ,,,, KB U 42 -6x • Permit #: 209-040 API # API #: 50-133-20586-00-00 Pad 41 -7 Prop. Des: A- 028142 537' FNL, 1,036' FEL, MARATHON KB elevation: 89' (23' AGL) Latitude: 60° 26' 38.035" N Sec. 7, T4N, R11 W, S.M. Conductor Longitude: 151° 04' 37.405' W , ii .,. . is 20" X - 95 129.4 ppf X: Top Bottom 4 IIIIII Y: MD 0' 134' Spud: 4/16/2009 15:00 hrs TVD 0' 134' TD: 5/5/2009 17:00 hrs Rig Released: 5/13/2009 24:00 hrs 6 Surface Casing PA #: !!I 13 -3/8" K -55 68 ppf Top Bottom MD 0' 2,508' TVD 0' 2,166' 16" Hole Cmt w/ 606 sks (255 bbls) of 12.0 • ppg, Type 1 cmt. 95 sks (40 bbls) cmt Top of 3 - 1/2" Tubing Cement • returned to surface with 100% returns. @ 5,840' MD Intermediate Casing 9 -5/8" L -80 40 ppf Butt Top Bottom MD 0' 7,091' TVD 0' 5,370' 12 -1/4" Hole Cmt w/ 366 sks (219 bbls) of 10.5 ppg Class G. Bumped plug, floats held. No returns to suface during entire cementing process. Production Tubing 3 - 1/2" L - 80 9.3 ppf Mod EUE f Top Bottom Chemical Injection Mandrels MD 0' 10,244' @ 7,521' MD, opens @ ? ?? psi - Di '� TVD 0' 8,523' @ 8,672 MD, opens @ ? ?? psi L j 8 -1/2" Hole Cmt w/ 1,431 sks (285 bbls) - 1 rt 15.8 ppg, Class G, 100% returns during entire job. Excape System Flappers MD: U Excape System Details Module 10 7,575', - 10 Excape modules placed along Module 9 = 7,870' with 2 chemical injection mandrels �>x , - contol line fires modules 6 - 10 Module 8 = 7,926' r Module 7 = 8,382' 1 & chemical injection mandrel Module 6 = 8,585' control line fires Modules 1 - 5 Module 5 = 8,725' 4+!4 & chemical injection mandrel iof Module 4 = 8,895' Middle Beluga Perfs MD (RKB): Module 3 = 9,015' Module 10 = 7,551' - 7,561' Module 2 = 9,056' ;1::: Lower Beluga Perfs MD (RKB): Module 1 = NA Module 9 = 7,845' 7,855' Module 8 = 7,901' - 7,911' € - Module 7 = 8,358' - 8,368' II , Module 6 = 8,559' - 8,569' ijyll K,, Module 5 = 8,701' - 8,711' Module 4 = 8,871' - 8,881' Tyonek Perfs MD (RKB): TD PBTD Module 3 = 8,991' - 9,001' 10,278' MD 10,207' MD Module 2 = 9,032' - 9,042' 8,557' TVD 8,486' TVD Module 1 = 9,251' - 9,261' I Well Name & Number: Kenai Beluga Unit 42 -6x Lease: Kenai Gas Field Municipality: Kenai Peninsula Borough State: Alaska 1 Country:) USA Perforations (MD): 7,551' - 9,261' (TVD): 5,830' - 7,540' Angle /Perfs: - 0.5° Angle @ KOP and Depth: -1.7° / 100 ft @ 200' Dated Completed: 7/28/2009 Completion Fluid: Revised by: Kevin Skiba Last Revison Date: 8/20/2009 M A Marathon Operations Summary Report _ Oil Company Well Name: KENAI BELUGA UNIT 42 -6X Qtr /Qtr, Block, Sec, Town, Range Field Name License No. State /Province Country SEC 7 T 4 N R 11 W KENAI 209040 ALASKA USA Casing Flange Elevation (ft) Ground Elevation (ft) KB- Casing Flange Distance (ft) KB- Ground Distance (ft) Spud Date Rig Release Date 66.00 23.00 4/16/2009 5/14/2009 Daily Operations Report Date: 3/8/2009 Job Category: DRILLING 24 Hr Summary Accept rig from KBU 11 -7X @ 12:00 hrs on 317/2009. Move in & rig up GD -1 over KBU 42 -6X. Ops Trouble Start Time End Time Dur(hrs) Ops Code Activity Code Status Code Comment 12:00 00:00 12.00 RURD RIG AF Accept rig from KBU 11 -7X @ 12:00 hrs on 3/7/2009. PTSM: Move sub base off well & scope down. Split pits & move out Move out generator house, boiler house & water tank house. Move in & spot pits & pump house, and pull together. Move in & set up generator & boiler houses. Set mud boat & park carrier. Blow down hydraulic hose on carrier & make repair. Level & turnbuckle down carrier. Plug in power around rig. Move in camp & set up. 00:00 04:00 4.00 RURD RIG AF PTSM: Prep & raise derrick. Pull electric lines & plug in. Tighten guy wires. Fold down wings on carrier. Unload trailers & send back to KBU 11 -7X. 04:00 06:00 2.00 RURD RIG AF PJSM w/ ASRC crane operator: Crane up fuel tank & centrifuge connex. Report Date: 3/9/2009 Job Category: DRILLING 24 Hr Summary Move in & rig up GD -1 over KBU 42 -6X. Ops Trouble Start Time End Time Dur(hrs) Ops Code Activity Code Status Code Comment 06:00 12:00 6.00 RURD RIG AF PJSM: Crane up pit side gray iron, choke house, flowline, stairs, landings, back wind walls, BOP convex & front stairs. 12:00 18:00 6.00 RURD RIG AF PTSM: Prep & scope up mast. Tighten guy wires. Install cylinder socks. Rig up monkey board. Install beaver lide, carrier roof & side tarps. Install driller's console & power up to test run (ok). 18:00 00:00 6.00 KURD RIG AF PJSM: Work on ods manrider control solenoid. P/U & hang torque tube. 00:00 06:00 6.00 RURD RIG AF PTSM: Tie back hanging lines in derrick. Install doors to access pins in sub base legs from outside of sub. Fill camp with water. Troubleshoot & repair glycol heater for stored mud. Report Date: 3/10/2009 Job Category: DRILLING 24 Hr Summary Finish rig up GD -1 over KBU 42 -6X. Monitor rig. Ops Trouble Start Time End Time Dur(hrs) Ops Code Activity Code Status Code Comment 06:00 12:00 6.00 KURD RIG AF PJSM: P/U top drive. Hang bails & elevators. Cont work on access doors on sub base. Hang rig tongs & pipe spinners. 12:00 00:00 12.00 RURD RIG AF PTSM: R/U mud manifold. Install snub posts. P/U slips, sub rack, dart &floor valves. Remove snow from matting boards. Sand walkways. R/U bleeder, fill up, kill & choke hoses. R/U geolograph. Work on ods manrider. Can't work on access doors on sub base. Unload trailers. Rack 5" drill pipe on sills. 0/0 saver sub & grabber dies. Take measurements for new top drive & turnbuckles. 00:00 06:00 6.00 WAITON REGS AF RD Monitor rig & mud storage tanks. Organize rig floor, work bench & dog house. Thaw water line to co. man's trailer. Shovel now & sand walkways. Report Date: 3/11/2009 Job Category: DRILLING 24 Hr Summary Monitor rig and mud storage tanks, perform selected maintenance projects all while waiting on drilling permits. Ops Trouble Start Time End Time Dur(hrs) Ops Code Activity Code Status Code Comment 06:00 18:00 12.00 WAITON PEGS TA RD PJSM: Monitor rig & mud storage tanks. Shovel snow & sand walkways. Repair & reinforce shelf in parts house. Fuel loader & camp generator. Set pump #3. R/U gaitronics from camp to rig. 18:00 06:00 12.00 WAITON REGS AF RD PJSM: Monitor rig & mud storage tanks. Shovel snow & sand walkways. Offload all mud products from trailers & place on matting boards. Work on hydraulic leak on drillers console. Plump rod wash overflow lines for mud pumps 1 & 2. Report Date: 3/12/2009 Job Category: DRILLING i 24 Hr Summary Monitor rig and mud storage tanks, perform selected maintenance projects all while waiting on drilling permits. Ops Trouble Start Time End Time Dur(hrs) Ops Code Activity Code Status Code Comment 06:00 06:00 24.00 WAITON BEGS AF RD PJSM: Monitor rig & mud storage tanks. Shovel snow & sand walkways. Report Date: 3/132009 Job Category: DRILLING 24 Hr Summary Monitor rig and mud storage tanks, perform selected maintenance projects all while waiting on drilling permits. www.peloton.com Report Printed: 8/20/2009 • 1 , Marathon Operations Summary Report �� Well Name: KENAI BELUGA UNIT 42 -6X Caslig Ftarge Elevatb■ in Ground EkilatY'ir, On) rcB-Cart►g Fmoge Dtime (In) I®- Gr411d DI6im* 01) Spud DatC RYg Release Dap 20.12 7.01 4116/2009 511412009 Ops I_ Start Time EYdTrne 0I (11 rs) Ops Cade ActlutliCoc SUE' Trouble Cale Came it 06:00 12:00 6.00 WAITON BEGS AF RD PJSM: Can and organize boiler house. Remove snow. Review and revise JSA's. 12:00 00:00 12.00 WAITON REGS AF RD PJSM. Monitor rig and mud storage tanks. Rebuild 4" demco valve. Install new guard on bench grinder in boiler house. Get information and photos for VVarrior Top Drive company. Review and revise JSA's. 00:00 06:00 6.00 WAITON BEGS AF RD PJSM. Monitor rig and mud storage tanks. Replace bulbs and bulb covers in mechanics shop. Prep and scrub boiler house.. Daily Operations Report Date: 3 /1412009 Job Category DRILLING 24 H r Summary Monitor rig and mud storage tanks, perform selected maintenance projects all while waiting on drilling permits. ops I_ StartTre EYdTme 0Ir(1rS7 Ow Ccde A,ctJtuCOde SINGS Trouble Cole Came it 06:00 12:00 6.00 WAITON REGS AF RD PJSM: ClO 7 lens covers on carrier and replace bulbs as needed. Move hydraulic mules into containment. Receive fuel. 12:00 00:00 12.00 VVAITON BEGS AF RD PJSM. Monitor rig and mud storage tanks. Thickness test lines on centrifugal pump manifold in pump room. Review and revise JSA's. 00:00 06:00 6.00 WAITON BEGS AF RD PJSM. Monitor rig and mud storage tanks. Prep and paint in boiler room. Empty and clean up water tank pump room. Report Date: 3/1512009 Job Category: DRILLING L, 24 H r GImmary Monitor rig and mud storage tanks, perform selected maintenance projects all while waiting on drilling permits. Ord GUrtTrne EudTine DIr0re) OpsCok Au'Lltl{rCak Strds Trout* Code Cornett 06:00 12:00 6.00 VVAITON BEGS AF RD PJSM: Plumb water lines to pit #5 and the centrifuge module. Review and revise JSA's. 12:00 00:00 12.00 WAITON REGS AF RD PJSM. Monitor rig and mud storage tank. Thickness test suction lines on pump #1 and pump #2 and hopper lines. Organize tools in boiler house. Review and revise JSA's. 00:00 06:00 6.00 VVAITON REGS AF RD PJSM. Monitor rig and mud storage tank. Organize tools and put away in boiler house. Prep to wash boiler house. Report Date: 31612009 Job Category: DRILLING L- 24 H r Summary Monitor rig and mud storage tanks, perform selected maintenance projects all while waiting on drilling permits. ops StartTtne E d Trne Dlr arse Ops Cole A,c1Ltr_+Cc Glaris Trouble Cafe Came it 06:00 12:00 6.00 WAITON REGS AF RD PJSM: Cont. to plumb water lines to pit #5 and the centrifuge module. Repair tire extinguisher bracket in break room. Mount flow meter screen in centrifuge module. Review and revise JSA's. 12:00 00:00 12.00 WAITON BEGS AF RD PJSM. Monitor rig and mud storage tank. Review and revise JSA's. Repair heat trace on water line to break house. Thickness test over head lines in mud pits. 00:00 06:00 6.00 WAITON REGS AF RD PJSM. Monitor rig and mud storage tank. Prep floor in pump room of water tank unit for primer. Wash back end of boiler house. Sand walkways. Report Date: 3 /1712009 Job Category: DRILLING L_ 24 H r Summary Monitor rig and mud storage tanks, perform selected maintenance projects all while waiting or drilling permits. 4pa St3rtTrne EldThle Dur(Irs) Ops Cock AcILIICak Stalls TroubkCak Came it 06:00 12:00 6.00 WAITON REGS AF RD PJSM: Review and revise JSA's. Thaw frozen water line @ camp. Fire up glycal heater on 41 -16 pad to heat up stored used mud. . 12:00 00:00 12.00 WAITON REGS AF RD PJSM. Monitor rig and mud storage tank. Review and revise JSA's. Fill camp water tank. Shut down glycol heater for used mud storage. Mud temp 49F. 00:00 06:00 6.00 WAITON REGS AF RD PJSM. Monitor rig and mud storage tanks. Finish scrubbing boiler house. Plumb water line to mud pit #5. Report Date: 31812009 Job Category: DRILLING L_ 24 H r Summary Monitor rig and mud storage tanks, perform selected maintenance projects all while waiting on drilling permits. op ` SmrtTrne EudTlne D4r(irs) OO$ AullatiCcde Slats Trouble Cale Canmebt 06:00 12:00 6.00 WAITON REGS AF RD PJSM: Review and revise JSA's. Set up frost fighter trunks into boiler house for drying and preping floor for painting. Clean up JSA files on rig doghouse computer. Organize files on computer. www.peloton.com Report Printed: 811412009 1 ` Marathon Operations Summary Report O.I Company Well Name: KENAI BELUGA UNIT 42 -6X Caslig Fmige Eku i (n) G rot id Ekuatkq 191-Caslig Fmige fstab In) 1®iirollGOMice Qn) Spud Dale Rg Release Dale I 20.12 7.01 4116!2009 516!2009 opt L— StartTTe Eid The D4 r{1rs) Ops Cale AuMLIyCode S131:1s Trouble Cale Canine it 1 2:00 00:00 12.00 WAITON BEGS AF RD PJSM. Monitor rig and mud storage tank. Check and repair hoses for for camp units. Re -plumb suction line for Nemo pump on centrifuge unit. 00:00 06:00 6.00 WAITON REGS AF RD PJSM. Monitor rig and mud storage tanks. Fuel camp generator, frost fighter and loader. Prep sink in boiler house for painting. Daily Operations Report Date: 3/19/2009 Job Category: DRILLING 24 H r Summary Monitor rig and mud storage tanks, perform selected maintenance projects all while waiting on drilling permits. opt SlartTlne Eid The Di Opt Code ActlirlFCale Sings TroubkCak Come it 06:00 12:00 6.00 WAITON REGS AF PJSM. Start up frost fighter to heat boiler house for painting the floor. Cont. working on plumbing water line to pit #5. 12:00 00:00 12.00 WAITON REGS AF PJSM. Monitor rig and rnud storage. Unload mud products. Finish plumbing line to Nemo pump on centrifuge unit. PJSM. Inspect suction line thickness #2 mud pit. 00:00 06:00 6.00 WAITON BEGS AF PJSM. Monitor rig and mud storage tanks. Prep floor in back end of boiler house and start painting. Finish plumbing 2" water line to mud pit #5. Finish plumbing 2" and 1" water line to centrifuge connex entrance for wash up. Report Date: 3/2012009 Job Category DRILLING L- 24 H r Summ3r1 Monitor rig and mud storage tanks, perform selected maintenance projects all while waiting on drilling permits. ops L_ SlartTlne EidTlne D1r airs) Opa Code MUM/Code Slabs Trouble Cock Comm it 06:00 12:00 6.00 WAITON REGS AF PJSM. Prime new installed water lines. Start up glycol boiler to heat stored mud on pad 41 -18. Paint condensate tank, storage cabinet and sink in boiler house. 12:00 00:00 12.00 VVAITON REGS AF PJSM. Monitor rig ams mud storage tanks. Change oil and filter on #2 rig generator. Startup and check generator. Fuel frost fighter. 00:00 06:00 6.00 WAITON BEGS AF PJSM. Monitor rig and mud storage tanks. Prep, paint and finish boiler house floor(front and back). Paint final coat on pump room in water module. Report Date: 3.21.2009 Job Category DRILLING L_ 24 H r Summary Monitor rig and mud storage tanks, perform selected maintenance projects all while waiting on drilling permits. op ` SartThie Eid Tree Dur (1rsl OpeCale ActiniCak Slates Tro4ble Oak Come it 06:00 12:00 6.00 WAITON REGS AF PJSM. Paint water lines to pit #5 and centrifuge unit. Prime suction line to centrifuge van. Clean up and delete more files from rig doghouse computer. Sand slick areas around rig. 12:00 00:00 12.00 WAITON REGS AF PJSM. Monitor rig and mud storage tanks. Receive rig fuel. assist Mud Engineer add chemicals to mud. Fuel frost fighter. Install new heat trace or frost fighter for camp water line. 00:00 06:00 6.00 VVAITON REGS AF PJSM. Monitor rig and mud storage tanks. Secure water line to pit #5 with u -bolts. Locate jumper hose for wash down line. Prime line for centrifuge. Fuel frost fighter. Report Date: 3/22)2009 Job Category DRILLING 24 H r Summary Monitor rig and mud storage tanks, perform selected maintenance projects all while waiting on drilling permits. opt L_ GortTee EidTtne Dir(irsl OpaCode AuMllll/Cak Strds Trouble Col Came it 06:00 12:00 6.00 VVAITON BEGS AF Change oil and fitters on camp generator. Clean up and organize camp generator house. Spread sand on slick areas around rig. 12:00 00:00 12.00 WAITON BEGS AF PJSM. Monitor rig and mud storage tanks. Fuel manlift. Adjust wireless receiver for Epoch monitor on camp unit. Insulate water hose for camp unit. Fill camp water tank. Trouble shoot Gaitronics in living quarters. Replace headset. 00:00 06:00 6.00 WAITON BEGS AF PJSM. Monitor rig and mud storage tanks. Change water filters in camp generator unit and change house. Check chlorination system. Fuel frost fighter. RN boiler blow down line. Report Date: 3123/2009 Job Category DRILLING 24 H r Gummy Monitor rig and mud storage tanks, perform selected maintenance projects all while waiting or drilling permits. www.peloton.com Report Printed: 811412009 • 1 Marathon Operations Summary Report ( IAARATtion „ Oil Company Well Name: KENAI BELUGA UNIT 42 -6X opt 1_ StartTrne EldTrne Drr(ra) Opt Code rk^tDllICOde Stih5 Trouble Ccde Came it 06:00 12:00 6.00 VVAITON BEGS AF PJSM. Start up glycol heater and heat stored mud. Fuel frost fighter. Chip ice and spread sand at mud storage area. 12:00 00:00 12.00 WAITON BEGS AF PJSM. Monitor rig and mud storage tanks. Clean battery terminals and check water in batteries on Model D” fork lift. Start up and check. Heat mud to 46F and shut down glycol heater. fabricate and install keeper for walkway into centrifuge unit. 00:00 06:00 6.00 VVAITON REGS AF PJSM. Monitor rig and mud storage tanks. Repair lighting wiring in boiler house. Organize mechanic shop. Revise JSA for generator swap(load sharing). Daily Operations Report Date: 3124/2009 Job Category: DRILLING L- 24 H r Swmmary Monitor rig and mud storage tanks, perform selected maintenance projects all while waiting on drilling permits. ops L- SgrtTrm ErdTme DIrOrs) opsCwe MIUrocade Stabs Trouble Cale Came it 06:00 12:00 6.00 WAITON REDS AF PJSM. Monitor rig and clean and organize electrical supplies. Review JSA for volcanic eruption. Check supplies for pre -fitter media, batteries, dust mask, radios and drinking water. Review generator swap procedure. 12:00 00:00 12.00 WAITON REGS AF PJSM. Monitor rig and heat stored mud to 48F. PJSM cut out two 6" tees and a dump valve out of suction line in #2 mud pit for repair. Fit up new flange to new tees and start welding them in. 00:00 06:00 6.00 VVAITON REGS AF PJSM. Monitor rig and mud storage tanks. Swap gen set. Report Date: 3i2512009 Job Category: DRILLING 24 H r SImmary Monitor rig and mud storage tanks, perform selected maintenance projects all while waiting on drilling permits. opt SartTrne EldThe Drr(1rs) OpaCale P+.'1LIIfCode status Trolble Cale Canmekt 06:00 12:00 6.00 WAITON REGS AF PJSM. Monitor rig. Clean up and organize camp generator room. 12:00 18:00 6.00 VVAITON REGS AF PJSM. Monitor rig and mud storage tanks. PJSM. Build new spool for mix pump #2 suction lire. Prep existing piping for installation. 18:00 00:00 6.00 WAITON REGS AF PJSM. Monitor rig and mud storage tanks. Transfer fuel to camp generator. 00:00 06:00 6.00 WAITON REGS AF PJSM. Monitor rig and mud storage tanks. Repair hand tools for welders. Organize electrical parts in camp generator house. Report Date: 3/26/2009 Job Category: DRILLING L_ 24 H r Simmary Monitor rig and mud storage tanks, perform selected maintenance projects all while waiting on drilling permits. opt I_ SgrtTrne EldTrne Our (ire) OpsCode ActrllliCOde Gina Trouble Code Canme 06:00 12:00 6.00 WAITON REGS AF PJSM. Weld out flanges and tee on suction line to mix pump #2. Continue to update smart maintenance. 12:00 18:00 6.00 VVAITON REGS AF PJSM. Monitor rig and mud storage tanks. PJSM. Install spool and butterfly valve for dump valve. 18:00 00:00 6.00 VVAITON REGS AF PJSM. Monitor rig and mud storage tanks. Continue to update smart maintenance. 00:00 06:00 6.00 VVAITON REGS AF PJSM. Monitor rig and mud storage tanks. Report Date: 3/2712009 Job Category: DRILLING I 24 H r Summary Monitor rig and mud storage tanks, perform selected maintenance projects all while waiting on drilling permits. Ord L_ STartTr,e Eid The D NI' Ors) Opt Cole ActliltiCock - mss Trouble Cock Comm it 06:00 12:00 6.00 VVAITON REDS AF PJSM. Monitor rig and mud storage tanks. Fit and weld up suction valve. Cortinue to update smart maintenance files. 12:00 18:00 6.00 WAITON REGS AF PJSM. Monitor rig and mud storage tanks. PJSM. Complete welding on suction valve and clean up. Build new hand rail on centrifuge connex. 18:00 00:00 6.00 WAITON REGS AF Continue to monitor rig and mud storage tanks. Work on smart maintenance. 00:00 06:00 6.00 WAITON REGS AF PJSM. Update files on smart maintenance program. Monitor rig. Report Date: 3/2812009 Job Category: DRILLING I- 24 H r Summary Monitor rig and mud storage tanks, perform selected maintenance projects all while waiting on drilling permits. www.peloton.com Report Printed: 811412009 III • (\ IVlaratreon Operations Summary Report ,�, .,a, to ) . Oil Company Well Name: KENAI BELUGA UNIT 42 -6X o, I_ StutTlrne Erd The Drrars) Ops Cale ActUhrCole Stith Trorb) Cale Carne it 06:00 12:00 6.00 WAITON BEGS AF PJSM. Monitor mud storage tanks. Troubleshoot camp water supply. Pull up electrical lines out of ice and tie -up same. 12:00 18:00 6.00 WAITON REGS AF PJSM. Monitor rig and mud storage tanks. Fill camp water tank. 18:00 00:00 6.00 WAITON REGS AF PJSM. Monitor rig and mud storage tanks. Fuel up camp generator. 00:00 06:00 6.00 WAITON REGS AF PJSM. Monitor rig and mud storage tanks. Cont. to update smart maintenance files. Daily Operations Report Date: 129)2009 Job Category: DRILLING 24 H r Summary' Monitor rig and mud storage tanks, perform selected maintenance projects all while waiting on drilling permits. Opa I_ S13rtTme Ed The DrrOrsa OpaCOde ActllltrCcde Stalls Trouble Cole Canmela 06:00 12:00 6.00 WAITON REGS AF PJSM. Monitor rig and mud storage tanks. Replace fuel vent piping for rig fuel tank. Thaw water to tool pushers trailer and insulate bare piping. Thaw out frozen down wiring to Co. mars office and tool pushers trailer. Remove skirting around TPICo.man living quarters. Thaw out frozen down electrical wiring under same. 12:00 18:00 6.00 WAITON REGS AF PJSM. Monitor rig and mud storage tanks. Continua to update files on smart maintenance program. Inspect hand rails around rig. 18:00 00:00 6.00 WAITON REGS AF PJSM. Begin repair on high pressure test pump. Cont. to update files on smart maintenance program. 00:00 06:00 6.00 WAITON REGS AF PJSM. Monitor rig and mud storage tanks. Cont. to update files on smart maintenance program. Report Date: 3130)2009 Job Category: DRILLING 24 H r Srmmary Monitor rig and mud storage tanks, perform selected maintenance projects all while waiting on drilling permits. Gps I_ GlartThe Er1Tme , Drrarh OpsCale AcfLrvCode Stich TrorbleCock Comment 06:00 12:00 6.00 WAITON REGS AF PJSM. Monitor rig and mud storage tanks. Start up glycol heater for mud storage tanks. 12:00 00:00 12.00 WAITON REGS AF PJSM. Monitor rig and mud storage tanks. Perform maintenance on high pressure test pump. Continue updating files for smart maintenance program. 00:00 06:00 6.00 WAITON REGS AF PJSM. Monitor rig and mud storage tanks. Continue to update smart maintenance files. Report Date: 3131!2009 Job Category: DRILLING I- 24 H r Summary Monitor rig and mud storage tanks, pertorm selected maintenance projects all while waiting or drilling permits. ops L_ S1artTme Bid The Drr(Yr) OptCOde ActtilliCocle Stills TrorbkCode Came it 06:00 12:00 6.00 WAITON OTHR AF PJSM. Continue work on rig fuel vent line. Received 1 tote 15140 motor oil. 12:00 00:00 12.00 WAITON OTHR AF PJSM. Monitor rig and mud storage tanks. Continue to update files in smart maintenance program. 00:00 06:00 6.00 WAITON OTHR AF PJSM. Monitor rig and mud storage tanks. Report Date: 4)"I )2009 Job Category: DRILLING C 24 HrSrmmanf Monitor rig and mud storage tanks, perform selected maintenance projects all while waiting on drilling permits. ops SlahThrc Erd The DIr(Ire) Ops Code peu►rcode Status Trouble Cale Canmeit 06:00 12:00 6.00 WAITON OTHR AF PJSM. Monitor rig and mud storage tanks. Change oil and fitters on #1 rig generator. 12:00 00:00 12.00 WAITON OTHR AF PJSM. Monitor rig and mud storage tanks. Clean and prep parts for high pressure test pump. Order parts as needed. 00:00 06:00 6.00 WAITON OTHR AF PJSM. Monitor rig and mud storage tanks. Report Date: 412)2009 Job Category: DRILLING I- 24 H r Srmmary Monitor rig and mud storage tanks, perform selected maintenance projects all while waiting on drilling permits. ops L_ StartThe EjdThe Durire) Opt Cale Actimicole Stills Trorble Code Canmert 06:00 12:00 6.00 WAITON OTHR AF PJSM. Transfer fuel to camp generator. Sand walkways. 12:00 00:00 12.00 WAITON OTHR AF PJSM. Monitor rig and mud storage tanks. Fill camp generator oil tank, fill all oil cans. PJSM. Transfer fuel to camp generator. Fill red fuel cell. Maintenance high pressure test pump. 00:00 06:00 6.00 WAITON OTHR AF PJSM. Monitor rig amd mud storage tanks. www.peloton.com Report Printed: 8/14)2009 • r Marathon Operations Summary Report . Well Name: KENAI BELUGA UNIT 42 -6X �,.,, k Oil Company Daily Operations Report Date: 4!3)2009 Job Category: DRILLING 24 H r Semmary Monitor rig and mud storage tanks, perform selected maintenance projects all while waiting on drilling permits. opt b'grtTlne End The Our Ors) Ops Cock Act ulliCo Stuns Trouble Cak Camme 06:00 12:00 6.00 WAITON OTHR AF PJSM. Monitor rig and mud storage tanks. Fill camp water tank. Clean and organize generator house. 12:00 00:00 12.00 WAITON OTHR AF PJSM Monitor rig and mud storage tank. Continue maintenance on high pressure test pump. Repair leaks or hydraulic lines to stabbing board and tugger control lines. Continue to update files in smart maintenance program. 00:00 06:00 6.00 VVAITON OTHR AF PJSM. Monitor rig and mud storage tanks. Tighten up hydraulic hose connections on rig floor at drillers console. Report Date: 4)4)2009 Job Category: DRILLING 24 H r Summary Monitor rig and mud storage tanks, perform selected maintenance projects all while waiting on drilling permits. Opt St3rtTlne Eld The Dirfirs) OpsCak ActkirkrCode 56tu Trolble Cade Canmeit 06:00 12:00 6.00 WAITON OTHR AF PJSM. Clean and organize rig generator house. 12:00 00:00 12.00 VVAITON OTHR AF PJSM. Monitor rig and mud storage tanks. Weld shoe on 20" conductor. Cut, bevel and weld two 20" pieces together. Replace O -rings on tugger diverter. Prep high pressure test pump parts. Pull covers off of shaker motors and clean. 00:00 06:00 6.00 WAITON OTHR AF PJSM. Monitor rig and mud storage tanks. Clean and mop floor in generator house. Report Date: 4)5)2009 Job Category: DRILLING L 24 HrStmmary Monitor rig and mud storage tanks, perform selected maintenance projects all while waiting on drilling permits. opt SgrtTlne Er] The D re) Ops Cock Ac1LrlrCack Stjtra Trouble Code Comme 06:00 12:00 6.00 WAITON OTHR AF PJSM. Clean and mop floor in generator house. 12:00 00:00 12.00 VVAITON OTHR AF PJSM. Monitor rig and mud storage tanks. Finish cleaning generator house. Paint high pressure test pump gear end. Maintenance suction line to high pressure test pump. Continue updating files in smart maintenance program. 00:00 06:00 6.00 WAITON OTHR AF PJSM. Monitor rig and mud storage tanks. Continue to update files in smart maintenance program. Report Date: 402009 Job Category: DRILLING 24 H r SImmary Monitor rig and mud storage tanks, perform selected maintenance projects all while waiting on drilling permits. opt S irtTlne EndTlne OerOrs} OpaCale rcttel_eccle =Is TroebkCode Comment 06:00 12:00 6.00 WAITON OTHR AF PJSM. Monitor rig and mud storage tanks. Thaw out blow down line. Put away insulated camp water hoses. Place dielectric mats back in generator house. Put up cleaning equipment. Replace cover on hydraulic panel at driller's console. Place hydraulic lines back into respective clamps in derrick at driller's console. 12:00 00:00 12.00 WAITON OTHR AF PJSM. Monitor rig and mud storage tanks. Review and revise JSA's. Finish cleaning generator house. Stake new wet for conductor on 41 -18 pad(well KBU 21 -18). Clean parts for high pressure test pump. 00:00 06:00 6.00 WAITON OTHR AF PJSM. Monitor rig and mud storage tanks. Remove plumbing from high pressure test pump tank. Report Date: 47)2009 Job Category: DRILLING 24 H r Semman" Monitor rig and mud storage tanks, perform selected maintenance projects all while waiting on drilling permits. Opa St3rtTlne Eta The Du (Ian Ops Cock SUtrs Trolble Code Comment 06:00 12:00 6.00 WAITON OTHR AF PJSM. Monitor rig and mud storage tanks. Review and revise JSA's. Remove high pressure test pump tank. Fuel up loader and welding machine. Sand walkways. Load out 20" conductor pipe. Start glycol heater and warm stored mud. 12:00 00:00 12.00 WAITON OTHR AF PJSM. Monitor rig and mud storage tanks. Continue to heat stored mud. Remove fuel tank vent. Plumb in camlocks for overflow hose to drum. Prep high pressure test pump tank. www.peloton.com Report Printed: 81412009 • 1 Marathon Operations Summary Report MARAT1104 t Oil Company Well Name: KENAI BELUGA UNIT 42 -6X ops St3rtTrne EYdTrne Drr(Yrs) Opt Code ActLttrCOtle Smda Trouble Cale Come it 06:00 12:00 6.00 VVA'ITON OTHR AF PJSM. Monitor rig and mud storage tanks. Take on rig fuel. Remove water line plumbing from high pressure test pump tank. 12:00 00:00 12.00 WAITON OTHR AF PJSM. Monitor rig and mud storage tanks. Prep, prime and paint high pressure test pump body. Finish prepping high pressure test pump tank wisteel seal. Charge battery on rig carrier unit. 00:00 06:00 6.00 WAITON OTHR AF PJSM. Monitor rig and mud storage tanks. Prep bracket for high pressure tee pump tank for painting.. Daily Operations Report Date: 4'912009 Job Category: DRILLING 24 HrGrmmary Monitor rig and mud storage tanks, perform selected maintenance projects all while waiting on drilling permits. ops L_ SmrtTme Ead The Dirnrs) opa Code AcUWpCOde Smug Tro;bk code Came rt 06:00 12:00 6.00 VVAITON OTHR AF PJSM. Monitor rig and mud storage tanks. Steel seal area behind high pressure test pump tank in choke house. Paint same area. Repair cover over winch motor on Expediter's truck. 12:00 00:00 12.00 VVAITON OTHR AF PJSM. Monitor rig and mud storage tanks. Prime and paint high pressure test pump tank. Reinstall shelf units in water tank pump room and secure to wall. Organize hoses in boiler house. Prep and prime barrel mover. 00: 00 06:00 6.00 WAITON OTHR AF PJSM. Monitor rig and mud storage tanks. Prep and paint fluid end of test pump. Report Date: 411002009 Job Category: DRILLING 24 HrSimman, Monitor rig and mud storage tanks, perform selected maintenance projects all while waiting on drilling permits. ops SmrtTDe EidTine DIr(rs) OpaCock pan/code GUIs TrorbkCock Come 06: 00 12:00 6.00 WAITON OTHR AF PJStv1. Monitor rig and mud storage tanks. Install fluid end or high pressure test pump. Charge battery or #1 carier engine. Start #1 and #2 carrier engines. Test run drawworks and top drive. 12:00 00:00 12.00 VVAITON OTHR AF PJSM. Monitor rig and mud storage tanks. Weekly safety meeting. Flush camp water tank and fill. Change out water filters. Check chlorine pump and injection system. Back drag bucket to smooth ruts. dig drains for large water puddles or location. Re- install high pressure test pump tank. 00:00 06:00 6.00 WAITON OTHR AF PJSM. Monitor rig and mud storage tanks. Rebuild plumbing for high pressure test pump. Report Date: 4111/2009 Job Category: DRILLING 24 H r Summary Monitor rig and mud forage tanks, perform selected maintenance projects all while waiting on drilling permits. ops L— SlartTrne Erd"Me DIr(Ire) Ops Code MtLItfCole Smua TroibkCole Canme 06:00 12:00 6.00 WAITON OTHR AF PJSM. Monitor rig and mud storage tanks. Inspect pulse dampener for high pressure test pump. Charge pulse dampener. Rebuild pop -off for high pressure test pump. 1 2:00 00:00 1 2.00 WAITON OTHR AF PJSM. Monitor rig and mud storage tanks. Rebuild 1" diaphragm pump. Dig more drainage trenches to drain water out of puddles. Start pumping large ponds at camp. Change oil and fitters on camp generator. Scrub on walls in mud pit house. 00:00 06:00 6.00 WAITON OTHR AF PJSM. Monitor rig and mud storage tanks. Scrub walls and piping in mud pit house. Plumb "Y" strainer on suction line for high pressure test pump. Report Date: 411212009 Job Category: DRILLING L_ 24 Hr Srmmary Monitor rig and mud storage tanks, perform selected maintenance projects all while waiting on drilling permits. Ops SmrtTrne EitlTrne Drr(i5 Op4Code Ac1Lriiccde Staua Troibk canine 06:00 12:00 6.00 WAITON OTHR AF PJSM. Monitor rig and mud storage tank. Install suction and discharge lines on high pressure test pump and mount pop -off line to water supply tank. 12:00 00:00 12.00 VVAITON OTHR AF PJSM. Monitor rig and mud storage tanks. Repair diaphragm pumps. Set -up and pump water from around camp and rig to filtration unit. Scrub in pit house. Organize yard for access to water line. Paint barrel stand for water tank house. 00:00 06:00 6.00 WAITON OTHR AF PJSM. Monitor rig and mud storage tanks. Scrub inside of mud pit house area. Continue pumping water from location to cuttings tank. www.peloton.com Report Printed: 811412009 • • ' Marathon Operations Summary Report ' OilComfany Well Name: KENAI BELUGA UNIT 42 -6X Daily Operations Report Date: 411312009 Job Category: DRILLING L- 24 HrSummanf Monitor rig and mud storage tanks, perform selected maintenance projects all while waiting on drilling permits. opa SgrtTme EYdTme DurOrs) OpaCork A,cLlrycode Stalls Trouble Ccde Ccmmekt 06:00 12:00 6.00 WAITON OTHR AF PJSM. Monitor rig and mud storage tanks. Install dresser sleeves on #1 and #2 mix pumps. Continue to pump water off of pad and into the cutting tank. 12:00 00:00 12.00 WAITON OTHR AF PJSM. Monitor rig and mud storage tanks. Continue to pump water from location into cutting tank. Lay water line from water well to rig water tank unit. 00:00 06:00 6.00 WAITON OTHR AF PJSM. Monitor rig and mud storage tanks. Scrub inside mud pit house. Pun !avater from cutting tank and location across 250 shaker screens into mud pits. Report Date: 4/1 412009 Job Category: DRILLING 24 H r GImmary Monitor rig and mud storage tanks, perform selected maintenance projects all while waiting on drilling permits. Fire boiler and circulate water and air around riq. ops L— SlartThe EIdTime Dlr(Yrs) Opt Cale Acnitycode Blida Troubk Code Cornmeit 06:00 12:00 6.00 VVAITON OTHR AF PJSM. Monitor rig and mud storage tanks. Cont. to pump water from around rig over 250 shaker screens. Inspect derrick board. Repair 2" trash pump. 12:00 00:00 12.00 WAITON OTHR AF PJSM. Monitor rig and mud storage tanks. Replace y- strainer on boiler condensate pumps. Plumb drain valves on condensate pumps A and B on y - strainers. Warm up boiler. RAJ and start steam around rig. Start thawing cellar. Warm rig water F150 to 70F. Circulate water around rig. Cont. to pump water off of pad into mud pits going over 250 shaker screens. 00:00 06:00 6.00 VVAITON OTHR AF PJSM. Monitor rig and mud storage tanks. Pump water from around rig across pad. Report Date: 411512009 Job Category: DRILLING 24 Hr Slmnanf Monitor rig and mud storage tanks. Pump melt water off of pad and into pits. Crews returned to work at 00:O0hrs 0411512009. Crew inspected rig and equipment. Cut conductor and dress cut. Prep to install 21 114" SOVV starter head. ops SmrtTtne EidTtne Durtiral OpaCMe A,ciirycotle StatiS Trouble cock Conmelt 06:00 12:00 6.00 VVAITON OTHR AF PJSM. Monitor rig and mud storage tanks. Fill loader wltuel. Pump water off of pad across 250 shaker screens and into pits. Move BJ unit off of soft area and onto solid area. 12:00 00:00 12.00 WAITON OTHR AF PJSM. Monitor rig and mud storage tanks. Cont. pumping water off of pads and into mud pits and Hanson tank. Fuel camp generator. Fill red fuel cell. Repair diaphragm pump. Move equipment so BJ unit can be spotted. 00:00 05:00 5.00 KURD OTHR AF PJSM. RAJ shock hoses, cellar grating, pump #3 suction and pop off lines. Spot first piece of diverter line. Grease top drive, carrier and crown. Pull wires for gas detectors. Repair loose alternator on#1 carrier motor. Change oil and filter on #2 carrier transmission. Install flow line extension. Pull out bridge crane beams. Pump out cellar. 05:00 06:00 1 .00 NUND ROPE AF PJSM. Make final cut on 20" conductor 6 112" AGL. Install 4" valves or Vetco starter head. Report Date: 411612009 Job Category: DRILLING L_ 24 HrStmmary Nipple up Diverter system, function test, cost. mix mud, PIJ 16" bit clean out conductor,PAJ 5" DAD opa St3rtTYne EldTine DurOrs) opaCode AuMLIVCork Stalls Trouble Cak Caomeit 06:00 21:30 15.50 NUND BOPE AF Continue nipple up diverter system. Begin mixing spud mud. 21:30 22:30 1.00 TEST BOPE AF Test diverter, flow line, alarms, PVT, koomey unit, and diverter valve.Test All gas alarms. Test Witness waived by; John Crisp AOGCC @0000, 4115109 Notfied ELM Tim Lawlor 22:30 00:00 1.50 PULD BHA AF PJSM; Rig up pipe handling equip, measure and make up 16" bit and bit sub 00:00 02:30 2.50 CLNOUT CSG AF PJSM; Clean out 20" -129# X -56 Conductor pipe. From 21' -132' 02:30 03:00 0.50 TRIP DP AF PJSM; POOH, Lay down 16" bit, bit sub. 03:00 06:00 3.00 PULD DP AF PJSM; Pick up 5" -19.5# 5 -135 drill pipe. www.peloton.com Report Printed: 811412009 • i Marathon Operations Summary Report At.; nil Company Well Name: KENAI BELUGA UNIT 42-SX Daily Operations Report Date: 4/7)2009 Job Category: DRILLING L 24 H r Summary P U 5" DP, PN hM DP, P1J BHA, Safety Meeting, Drill ))132' -171', POOH P1J jars, shock sub, RIH, Drill fM 71' -800' ops L- StartTine EldTine DirOirs) OpaCole ActIlliCale Soda Trouble Code Came it 06:00 11:00 5.00 PULD DP AF Continue pha 5" drillpipe, HdvDP and Jars 11:00 12:00 1.00 PULD BHA AF Strap and set BHA on cat walk. 12:00 13:00 1.00 SAFETY MTG AF Hold weekley safety meeting with crews. Discuss rig start up after shut down and location hazards. 13:00 15:00 2.00 PULD BHA AF PJSM: P1J and M1J BHA # 2 motor 16" bit, RA D,pony collar. Scribe Motor & MdvD.pIu Stablizer,2X monel Drill collars, Hd4DP. Spud KBU at 1500hrs 4/16/09 15:00 16:00 1.00 DRILL SLID AF Directional Drill 16" surface section f-132' to 171" begin build section at 200'. ART =.5 AST =0 RPM =70 GPM =365 PSI =400 Flow rate limited by shakers. 16:00 17:30 1 .50 TRIP DP AF PJSM: Stand back one stand 1 ADP, Pick up and make up shock sub, CSDP, and X- overs, RIH to 171' 17:30 00:00 6.50 DRILL ROT AF Directional Drill 16 "' surface section f/171'-455', GPM= 365, PSI= 625, RPM =50, AST =3.2, ART =.8, No gains No losses, Start centrifuge @ 0000 hrs. Mud wt. at 9.3# Up wt. =50K Dn wt. =45K RT wt. =48K Tq. =2K( Having problems at 200' -285' with boulders) 00:00 06:00 6.00 DRILL ROT AF Directional Drill 16" surface section f1455' -800' GPM =510, PSI =1150, RPM =70, No Gains No Iosses,Up wt. =55K Dn wt =45K Rt wt. =50K Tq. =SK AST =2.7 ART =.9 (Increase pump rate as shakers allow.) Start running _centrifuge to reduce mud weigf rt f- 9.3 -9ppg at00:30hrs. No gain or losses Report Date: 418)2009 Job Category: DRILLING L_ 24 H r Summary Drill Ahead f/800' -2336' Ops L_ StartThre EidTine D opaCole rc1ir4"Ca]e Stags TroibkCock Canme 06:00 12:00 6.00 DRILL SLID AF Drill 16" build section f- 800' -1210' 620gpm 1150psi p) i 70klbs. s)o 57klbs. rt. wt 65klbs. tq 3 -4 ft/ klbs. AST= 3hrs. ART= 1 hr. No gainfLoss. Pump sweeps to maintain hole cleaning, Run centrifuge 12:00 18:00 6.00 DRILL SLID AF Drill 16" build section f- 1210 -1575' 620gpm 1150psi p)u 70klbs. s)o 57klbs. rt. wt 65klbs. tq 3 -4 ft) klbs. AST= 2.Shrs. ART= 1 .1 hr. No gain/Loss. Pump sweeps to maintain hole cleaning, Run centrifuge 18:00 00:00 6.00 DRILL SLID AF Drill 16" build section ()1575' -1983 620gpm 1150psi p/u 80klbs. 5)0 60klbs. rt. wt 60klbs. tq 4 -5 ft) klbs. AST= 2.9hrs. ART= 1 .4hr. No gain/Loss. Pump sweeps to maintain hole cleaning, Run centrifuge 00:00 06:00 6.00 DRILL ROT AF Drill 16" build section f11983'- 2336'620gpm 1600psi prU 95klbs. sIo 62klbs. rt. wt 75klbs. tq 5 -6 ft) klbs. AST= 2.3hrs. ART= 1 .7hr. No gainiLoss. Pump sweeps to maintain hole cleaning, Run centrifuge Report Date: 4/9)2009 Job Category: DRILLING L_ 24 H r Simmary Drill ft2336'- 2520', Circ. hi visc. sweep, Monitor well make wiper trip, RIH, Circ. hi visc. sweep, POOH t) run 13 3/8 csg., Ra1.J to run csg. P1J shoe track, test floats RIH w) csg. Ops StartTTie Ed Tine Our Ors) OpaCotle fu1lrltrCc. S13111s TroibkCoJe Came it 06:00 08:30 2.50 DRILL ROT AF Drill 16" build Section f- 2336'- 2520' 610gpm 1625psi p)u 100k1b. s)0 64k1b rt. wt. 77k1b. tq 5 -6k1 ftlbs. AST= 1 .1 hrs ART = .8hrs No gain loss. TID of 16" surface section 2520'. 08:30 10:00 1.50 CIRC MUD AF Circulate and pump Hi -vis sweep at 2520' 610gpm 1625psi. Sweep returned with slight increase in cuttings, continue circ until shakers cleaned up 10:00 14:30 4.50 TRIP Vv1PR AF Monitor well POH t- 2520' -150' ( wiper Trip) Lay down shock sub. Hole slick no tight spots or over pulls. No gain loss. Rih f -150' -2520' Precautionary wash f -2458 to 2520' tag bottom , No fill . No gain) loss on wiper trip 14:30 16:30 2.00 CIRC MUD AF Circulate and pump Hi -Vis sweep with nut plug at 2520' 620gpm 1750psi 7 5 -85rpm . Sweep returned as caculated with slight increase in cuttings. Spot 22 bbl hi vis pill on bottom tor casing run. 16:30 18:00 1.50 TRIP DP AF Monitor well POH f -2520' to run 13 3/8 casing 18:00 19:00 1.00 TRIP BHA AF PJSM; POOH w) BHA stand back 5" l Flex collars. 19:00 19:30 0.50 TRIP BHA AF PJSM; Check filter sub, dress 6 5/8 monel connection with polish grinder.(Connection between filter sub and monel, torqued up at BHI shop.) www.peloton.com Report Printed: 8/14/2009 • �,�% Marathon Operations Summary Report ammo ,r, Oil Company Well Name: KENAI BELUGA UNIT 42-6X apa L___ St3RTlne EidTtne D4r(1re) DptCOtle PIVCUtle StirdE Tra1GleCock Canmekt 19:30 21:00 1.50 TRIP BHA AF PJSM; Lay down MVVD, pony collar, stab., and bit, clean floor. 21:00 00:00 3.00 RURD CSG AF PJSM; Change bails, lay down elevators, rig up fill up line, change out snubbing post, charge over ton s to 13 3/8 csg. tongs. 00:00 00:30 0.50 SAFETY MTG AF PJSM; Hold safety meeting with Weatherford casing hands and rig hands to run 13 3/8 csg. 00:30 01:30 1.00 RUN CSG AF Pick up 13 3/8 shoe track 40' and test floats. OK. 01:30 06:00 4.50 RUN CSG AF As of 0600hrs 44/ out of 54 :its joints ran .1964' of 13 3/8- 68# K -55 casing. Daily Operations Report Date: 4!20/2009 Job Category: DRILLING L 24 H r S;mmary Run 13 3/8 csg., RD Weatherford, RIU to run 5" DP w/ stinger, RIH, RN cmt hd., Circ. mud, pump 268 bbls. cmt., unsting drop darts displace DP, CIPr~rn1800hrs. Flush lines ,POOH wDrP, Opt SgrtTlne EYd Tlne DIr(Yrs) OF¢COtle Ac1LI1,rCafe Slats Tro1GkCO6e COMM It 06:00 08:00 2.00 RUN CSG AF Continue running 13 3/8 K -55 68# casing to 2508' Total of 54 jts ran with 16 bow spring centrilzers and 3 stop rings PN 10' pup and attempt to rih. No ga. Rig up circulating head, circulate and work pipe with no success. Land casing with shoe set at 2508' Float collar set at 2466'. No gains or losses, Correct displacement. 08:00 11:00 3.00 RUN CSG AF RD casing tools, change out long bails to short bails and drillpipe elevators. RAJ false rotary for running 5" inner string. Note Circulate casingrhole while rigging up for inner string cement job at 210gpm 200psi 11:00 13:00 2.00 RUN CSG AF MN stab in sub and centrailzer on 7' drillpipe pup RIH space out and stab into float collar 13:00 19:30 6.50 PUMP CMT AF RU cement head and lines, circulate and condition mud. Hold PJSM: with BJ and rig crews .Discuss hazards involved in cementing process. Ok. Mix and pump 40bb1 Mud clean spacer.with red dye with rig pumps. Shut down and pu9p2bbls H2O and test lines to 2000psi with BJ pumps. OK. Mix and pump 60§, sx type 1 cement +22% LW6 +20% MPA -1 +2% CaCI + 1% SMS + 3% CD-32 +.05% Static Free +.4KCL 1 ghs FP -6L to Yield°255 bbls 12ppg slurry. Note calculated cement volume with 75% excess was 340bbIs. Saw clean 12ppg cement it cellar at 255bbIs pumped. Shut down B1 and displace cement in drillpipe with 38 bbls of 9.4ppg spud mud. Shut down and pull 2 stands. After breaking off first stand cement was at top of connection. Drop 3' wiper dart and sponge Displace drilllpipe.Durirg displacement got cement back from the 13 3/8 annulus, pump 21< bottoms up to clear cement. 40 bbls. cement back to surface at different intervals during displacement.Circ. out drill pipe and dump 134bbIs of mud / cement. ; Cmt in place at 1600 hrs. 100% returns. Called Tim Lawlor ELM 4/18/2009 O710hrs and gave notice of running casing and cementing. 19:30 21:30 2.00 CLEAN RIG AF PJSM; Lire up on kill line and pump fluid to clean divertor syestem.Flush cmt. line, bleeders, and clean trip tank. 21:30 01:00 3.50 TRIP DP AF PJSM; POOH with drill pipe and cement stab in tool.Start cleaning pits. Inspect drillpipe for cement, none found on trip out of hole. 01:00 03:00 2.00 CLEAN RIG AF PJSM; Lay down four joints 5" drill pipe from derrick with cement inside, clear floor and rig down csg. tools. 03:00 05:00 2.00 NUND BOPE AF PJSM; Lay down mouse hole, rig down divertor line and knife valve. 05:00 06:00 1.00 NUND BOPE AF PJSM; make rough cut on 13 3/8 casing. 06:00 07:00 1 .00 NUND BOPE AF PJSM; Continue to rig down divertor.Cont. to clean pits. Report Date: 4/21/2009 Job Category: DRILLING I 24 HrSimm31y Nipple up, Test BOP, Install wear ring , test csg.25073500 10min test BLM requirement. Test casing 1500 psi 30 min., P/J 5" DrP opa Sbrt7►ne EbtlTtpe Dor(Yrd) aFaCede ActMCa7z Sgds TrorGkC Ca 06:00 08:00 2.00 NUND BOPE AF Continue ripple down diverter stack, Move out bell nipple and 20 114 annular. Remove starting head. 08:00 10:00 2.00 NUND VvLHD AF Make final cut on 13 3/8 casing and dress out. Note cut casing 2' below ground level. Due to elevation of pad . Start mixing Flow -Pro mud 10:00 13:30 3.50 NUND dvLHD AF PJSM: Install Vetco sliplock bottom k 13 5/8 5000 Muttibowl wellhead. Test to 1800psi/1 Omin. Set BOP stack between gray iron and continue to Mix mud www.peloton.com Report Printed: 8/14/2009 • • ( Alk ) Marathon Operations Summary Report t. OilCompany Well Name: KENAI BELUGA UNIT 42 -6X op, L- SgrtTine EldTine Dlr (I r!r Ops Cafe Pct1il Cc. SSits Trouble Oak Come it 13:30 20:30 7.00 NUND ROPE AF PJSM: Set spools and nipple up bop stack. Install riser and flow line. Nipple up choke and kill lines. Hook up accumlator lines. Install turn buckles.Work on drawworks brakes. Mixing mud. 20:30 02:00 5.50 TEST BOPE AF Test 2 7 /8" X 5 112" variable rams, blind rams, annular, choke line HCR, choke line manual valve, kill line inner and outer manual valves, Kill line check valves, top drive upper and lower valves, safety valve, IBOP valve to 250t3500psi . Tested all gas alarms and PVT system. Performed koomey performance test. Test witnessed by Bob Noble @2100 hrs. 4121 X09, Witness waived by Tim Lawlor 7:15, 4118/09, 250 psi low, 3500 psi high ram test, 250 psi low, 2500 psi high Annular test. All test held 10 min. BLM requirement. 02:00 03:00 1.00 TEST BOPE AF PJSM; Rig down test equip. for BOPE test, install wear ring, Wear ring ID12 3/8 03:00 04:00 1 .00 TEST CSG AF PJSM; Rig up and test csg. 1500 psi 1130min. test good. 04:00 05:00 1 .00 NUND BOPE AF PJSM; Rig up drip par on BOP. 05:00 06:00 1 .00 PULD DP AF PJSM; Rig up and Pick up, drift 5" drill pipe, stand in derrick. Daily Operations Report Date: 4/2212009 Job Category: DRILLING 24 H r Slmmary PN drillpipe, MU BHA, RIHw/ MNDP, W/O Carrier, PN Drill pipe, Drill out Shoe track, Drill 20' new hole to 2540', Displace hole w1 new 8.8# flo pro, FIT EMk/ =13 #,Drill 112540' -3010' ops I_ StartTtne Eid The D1r(1 rs) OpsCOde ActIgliCode Stahs TrolbieCock Commelt 06:00 11:00 5.00 PULD DP AF Continue PN drift 5" S -135 drillpipe Total 80jts 40stands Pi1J and Stood back in mast. 11:00 13:00 2.00 PULD BHA AF PJSM: Make up 12 1/4 bit,Motor,Stablizer, Pony collar and MVVD.Scribe motor to M/ D RIH 13:00 13:30 0.50 REPAIR EQIP TA MSTB Dress up and clean up galled threads ( pin) on crossover from Fitter to monel collars ( crossover was made up at BHI shop not on rig. 13:30 14:30 1 .00 TRIP BHA AF RIH with I-MDP and jars. Pulse test MWD 14:30 15:00 0.50 REPAIR RIG TA MSHS Troubleshoot and repair Carrier transmisson shifter on Drillers consol . 15:00 18:30 3.50 TRIP DP AF RIH PiU and drift 5" drillpipe to 2110' Precautionary wash f- 2250'- 2466' ( due to possable cement above float collar ) tag float collar at 2466', No cement above F/C 18:30 19:30 1.00 DRILL CMT AF Drill flloat collar and shoe track 1 -2466' -2508' Clean out old hole t- 2508 -2520' Note ; Firm cement in shoe track 19:30 20:00 0.50 DRILL ROT AF Drill t -2520 -2540' Up wt. =98K Dn. wt. =62K 75K Rt wt. Tq. =6K Pump =504 GPM 900 PSI 20:00 21:00 1.00 CIRC MUD AF Circ. Hole clean. 400 GPM 550 psi 21:00 22:00 1.00 CIRC MUD AF PJSM; Displace well with 30 bbls. water, 35 bbls. Hi -vise. sweep, and 362 bbls. 8.8# New Flo Pro mud. 22:00 22:30 0.50 TEST LOT AF PJSM; Perform FIT test at 2164' TVD 8.8# mud. 480 psi =13ppg EMW 22:30 00:00 1 .50 DRILL ROT AF Directional drill 12 114" hole 112540'- 2608' Up wt. =98K, Dn wt. =62K, Rt wt.= 75K,Tq 5 -7 1plklbs rpm 70.Pump =504 GPM 900PSI AST =.4 ART =.6 No gains No losses. 00:00 06:00 6.00 DRILL ROT AF Directional drill 12 1/4" hole 112608'- 3010'Up wt. =98K, Dn wt. =65K, Rt wt. =76K, 5- 7fplklbs rpm 70 Pump =590 GPM 1150 PSI AST= 1.9 ART= 1.8 No gains No losses. Report Date: 412312009 Job Category: DRILLING 24 HrGunman/ Drill 113010'- 4400', Circulate , Wiper trip 4400- 2500',Service rig ops SlartTine Eid Tine 01r(ire) Ops Cale Act JIVCOde Strds Trolbkcok Came Et 06:00 12:00 6.00 DRILL ROT AF Drill 12 1/4 tangent section f- 3010'- 3452' @550- 600gpm 1250psi p/u 103klb. s/o 70klb. rot. wt. 84k1b. 77rpm tq. 6- 7k1-lbs. ART= 2.6hrs AST= 1 .2hrs. At 3325 -3480' 1 Obbls per hr. Reduce pump rate to S65gpm. Losses stopped. Started Centrifuge to maintain mud weight at 9.1+ 12:00 18:00 6.00 DRILL ROT AF Drill 12 114 tangent section f- 3452 " - 3940' @550- 600gpm 1250psi p/u 106k1b. s/o 72k1b. rot. wt. 86k1b. 77rpm tq. 7 -9kft -Ibs. ART= 3.50hrs AST= .4 18:00 00:00 6.00 DRILL ROT AF Drill 12 114 tangent section f- 3940'- 4335' @565 1250psi p/u 115k1b. s/o 70k1b. rot. wt. 84k1b. 77rpm tq. 6-7kft-lbs. ART= 2.6hrs AST1 .1= hrs. Note: Run centrifuge www.peloton.com Report Printed: 8114/2009 i • Marathon Operations Summary Report � r� Oil Company Well Name: KENAI BELUGA UNIT 42-6X Ops L_ SlartTtne Eld The Du Ors) OpsCaie FutbtY/COde Stills Trouble Cale Carnme 00:00 00:30 0.50 DRILL ROT AF Drill 12 114 tangent section f- 4335 - '4400', @565 1300psi plu 120klb. slo 75klb. rot. wt. 90k1b. 77rpm tq. 8- 10kft -Ibs. ART= .6hrs AST= Ohrs. 00:30 02:00 1 .50 CIRC CFLD AF Circ. (2) bottoms up For wiper trip (err) 4399' 550 GPM 1300psi, 40 rpm 02:00 05:00 3.00 TRIP VMPR AF PJSM; Monitor well ,POOH wiper trip fi 4400' to shoe 2508' Work thru tight spots at 3495', 3600', cont. out of hole.Proper hole fill. 05:00 06:00 1 .00 SERVIC RIG AF PJSM; Serv. rig and equip.And top drive. Replace bracket on alternator # 1 carrier motor and relay in drillers control pannel for top drive Daily Operations Report Date: 4/2412009 Job Category: DRILLING L_ 24 H r Summary Dril114399- 5160', Losing 100 bbls. hr., pump LCM pills, and make short trips, slw losses to 20 BPH I drill (15160'- 5341', Pump LCM pill, POOH Opt L_ SOrtTMe EidTrne D (Yrd) Ops Code Fu11,11/Code Sods Trouble Cale Ccnme 06:00 07:30 1 .50 TRIP WPR AF Continue wiper trip to 4340' percautionary wash t- 4340 -4400' Tag bottom no fill. No gainiloss. 07:30 12:00 4.50 DRILL ROT AF Drill 12 114 Tangent section f 4399'- 4716' C 565gpm 1450psi. plu 123kIbs. sl0 7 7klbs. rot/ wtl 96klb tq 8 -9 fllbs.80- 87rpm. AST =.5. ART= 2.10 Run Centrifuge.to maintain mud weight at 9.1+ No gain Loss. Note Pumped weightedfli -Vis sweep at 4560'. Sweep returned with heavy returns of sand, clay and sift 4X normal 12:00 17:30 5.50 DRILL ROT AF Drill 12 114 Tangent Section f 4716' -5160 @ 565gpm 1525psi plu 133k1b slo 80.klb rt.•M.100klb tq 10 -11 klblflp. AST =0 Art = 5.7. Begin loosing mud at 25bbls per hr.at 5040 .No losses static. Losses increased to 1 OObbl per hr.. 17:30 18:30 1 .00 PUMP LCM TA NDLC Pump 4Obb1 lcm pit with 3sx flow vis 2sx pally pac 11 sx KCL 10sx 1 Olbs per bbl SC40 + 10sx SC250 101bsper bbl +10sx SC500 101bs per bbl . For a total of 50Ibs per bbl . +Ssx G -Seal and 6Sx Ventrol 401 4.8Ibs.bbl. Losses at 20bbl per while pumping lcm pill. Total losses 337bb1s 18:30 20:00 1 .50 TRIP vMPR TA NDLC Monitor well 1 Obbl per hr.loss POH to 4400' to let LCM pill soak' 20:00 20:30 0.50 TRIP DP TA NDLC PJSM; RIH fI4335' -4750' Pipe stuck at 4750' work pipe free, cont.RIH washing down f14750' -5160' 20:30 21:30 1.00 CIRC MUD TA NDLC Circ. well losing averg. 100 bbls. hr. Pump 40bb1 lcm pill with 2sx flow vis 2sx polly pac 11 sx KCL 20 sx 2SIbs per bbl SC40 + 20sx SC250 25lbs per bbl +10sx SC500 -30 -50 251bs per bbl .+8sx G -Seal and 5 Sx Ventrol 401 4.8Ibs.bbl. Spot pill at 5160' 21:30 22:30 1 .00 TRIP DP TA NDLC PJSM; POOH (15160' -4452' Hole slick. 22:30 23:00 0.50 TRIP DP TA NDLC PJSM; RIH f14452' -4875' hole tight, kelly up and pump to check fluid losses and work thru tight spot at 4875', losing 20 BPH at 400 GPM. Max. wt pulled =190K. 23:00 00:30 1 .50 TRIP DP TA NDLC Cont. to wash f14875' - 5160' at 400 GPM with 20 BPH losses. Total losses 781 bbls,l Used 400bbIs from storage 00:30 04:00 3.50 DRILL ROT AF Drill 12 114 Drop Section (5160 -5341' coo 400gpm 1000 psi pfu145 klb slo 8Oklb rt.wt. 10Oklb tq 10 -11 klblflp. AST= 1 .9Art = .8.No losses static. Losses 20 bbl per hr. 400 GPM 04:00 04:30 0.50 CIRC MUD TA NDLC Circ. well losing averg. 120 bbls. hr. Pump 4Obb1 lcm pill with 2sx flow vis 2sx polly pac 11 sx KCL 24 sx 301bs per bbl SC40 + 24sx SC250 301bs per bbl +24sx SC500 -30 -50 301bs per bbl . +10sx G -Seal and 6 Sx Ventrol 401 6Ibs.bbl. Spot pill at 5341' 04:30 06:00 1 .50 TRIP DP TA NDLC PJSM;POOH t15341' -4265' ( POOH to mix mud volume let LCM pill soak) Report Date: 412512009 Job Category: DRILLING L, 24111 SImmary Cont.POH, Serv. rig, Cut drlg. line, Build mud volume, RIH t12554' circ. BN, RIH, Dri1115341'- 5413', Lost circ. 100 bbl hr. losses , pump LCM, Let well heal, work pipe, f15413'- 4779', Drill f15413'- 5634'Build mud volume, Opa L_ StirtThe EldThe DirOrs) OpsCade ActUrIvCCAe Stills TfolbkCOde Ca 06:00 08:30 2.50 TRIP DP TA NDLC Continue to POH f- 4560' -2451' 13 318 shoe. Work various tight hole (ledges). Sbbl per hour loss to hole. 08:30 11:30 3.00 MIX MUD TA NDLC PJSM: service rig and slip drilling line. Build mud volume due to lost circulation. Move 10Obbls to vacuum truck. Total surface volume 639 bbls . Monitor well losses with trip tank. 1 bbl. loss per hr. 11:30 12:00 0.50 CIRC MUD TA NDLC RIH to 2554' Circulate BN at 585gpm 750psi. 87rpm On B1J heavy returns over shakers 95% LCM. No losses to hole www.peloton.com Report Printed: 8'1412009 • • Marathon Operations Summary Report mpany Well Name: KENAI BELUGA UNIT 42-6X SgrtTYne EY1Time Dur ilra) Ops Cole A.ctjtk(Cade St3Drs Trouble Cole Canmeut 12:00 13:30 1.50 TRIP DP TA NDLC RIH 1-2554' -5289' Wash from 5289'to 5341' 410gpm 880psi Tag bottom no fill, No gain loss Note work ledges at 4554' 5126' 13:30 20:00 6.50 DRILL ROT AF Drill 12 114 drop section f- 5341' -5413' Up wt. =145K Dn wt. =80k, Rt wt. =105K Tq. =9 -11 .5KART =.6 AST= 3.6Losing 20 bbls hr. Difficult sliding . 2.3 hrs orienting bit. 20:00 21:00 1.00 CIRC MUD TA NDLC Lost 230 bbls.total 6.5 hrs.Pump and spot LCM pill at 5413' 40 bbls. 2sx. Flo vis(1 ppb), 2sx. Poly Pac(2ppb), 11 sx. KCL(11 ppb), 24sx. S.C.40(30ppb) 24sx. S.C. 250(30ppb) 24sx. S.C.500,30- 50(30ppb) 10sx. G- Seal(10ppb) 6sx. Ventral 401(6ppb) 21:00 23:00 2.00 TRIP DP TA NDLC PJSM; POOH 1151413' -4779' Work pipe while letting LCM pill set on bottom, RIH 114779' -5413' Hole slick no issues. Lost 197 bbls. 23:00 00:00 1 .00 DRILL ROT AF Drill 12 1/4 drop section 1- 5413' -5426' Up wt. =145K Dn wtt. =80k, Rt wt. =105K Tq. =9 -11 .5K ARTO= AST =.6 Losing 20 bbls hr. Note : orient time to set up and slide 2 .4hrs to slide 30' ( Add Lo torque 2% to break friction from hole. ( Not getting weight to bit ) 00:00 06:00 6.00 DRILL ROT AF Drill 12 114 drop section f- 5426'- 5634Up wt. =145K Dn wt. =80k, Rt wt. =105K Tq.= 9 -11.5K ART =.9 AST =4.2 Losing 4 bbls hr. Background Gas =20 units PR rate sliding 10 -36 toot per hr. Rotating 58 -85 foot per hr. Increase Lo torque to 3% Total fluid loss to hole 445bb1s in 24hrs. Daily Operations Report Date: 4/26/2009 Job Category: DRILLING 24 Hr Summary Drill/ 5643'- 6248', CBU, Backream and pump 16248- 5300', RIH to 6180', Pump hi vics sweep ops L_ St3rtTtrie EudTime DIr {1re) Ops Cole Ac7LtliCOtle Gins Trouble Cale Came it 06:00 12:00 6.00 DRILL ROT AF Drill 12 114 drop section 1 5643'- 5868'. 450gpm 1150psi. plu 1 SOklb sio 96k1b. rt. wt. 10Sklb 70 rpm tq. 10 -11 klb ft.lbs AST = 3.4 ART = 1 1 Obbl per hr. loss. P rate sliding 30 -47fph P rate rotating 80- 95fph. 12:00 22:30 10.50 DRILL ROT AF Drill 12 114 drop section 1 5868'- 6236' 450gpm 1300psi. plu 16Sklb sio 97k1b. rt.wt. 120kIb 70 rpm tq. 10 -11 klb thlbs AST = 3.7 ART = 3.0, 6 -7 bbl per loss. P rate sliding 30 -55tph P rate rotating 80- 115fph. 6 -1 Obbl per hour losses to hole. 22 :30 23:00 0.50 REPAIR RIG TA MSHS Adjust top drive rail. 23:00 00:00 1 .00 DRILL ROT AF Drill 12 114 drop section 1/ 6236' -6258' 450gpm 1300psi. plu 165k1b sic) 97k1b. rt.wt.120k1b 70 rpm tq. 10 -11 klb ftdlbs AST = .60 ART = .40, 6 -7 bbl per loss. P rate sliding 30 -40fph P rate rotating 80 -11 Sfph. 6bbl per hour losses to hole. 00:00 01:00 1.00 CIRC MUD AF Circ. bottoms up, for wiper trip, hard to hold tool face, difficult sliding. Pump at 450gpm 11 OOpsi. Saw little change in cuttings over shakers 01:00 01:30 0.50 REPAIR RIG TA MSHS Adjust top drive rail. 01:30 04:00 2.50 TRIP VMPR AF PJSM; Back ream, pump 450 GPM 116258' -5300' Hole slick no issues, no losses. 04:00 05:00 1 .00 TRIP VMPR AF PJSM; RIH 115300'- 6180' No ledges or tight hole . No gainfloss. 05:00 06:00 1 .00 CIRC MUD AF Pump 25 bbl. hi visc sweep, increase pump rate from 450 GPM to 535 GPM, Rotary torque decreased from 11 -12KIb ttilbs to 8 -9Klb ttAbs Sweep returned with increase of cuttings over shakers Cuttings 60% formation 40% LCM on initial circulation. Cuttings at end of sweep 60% LCM 40% formation. Nate cuttings showing some conglomerate. Report Date: 4/27/2009 Job Category: DRILLING 24 H r Srmmary Circ. hi vise sweep, Drill 12 1r2" 116236'- 6983', CBU, @6983', Drill f16963'- 6994' ops L_ SgrtThe Erd Ttne D u r rims) 0ps Cade Aatlrrl(Catle SEMIS Trouble Catle Calmest 06:00 06:30 0.50 CIRC MUD AF Complete circulating out Hi vis sweep. at 6258' S50gpm 1150psi. No gain/loss. 06:30 12:00 5.50 DRILL drop ROT AF Drill 12 114 dro section f - 6236' -6446' SSOgpm 145Opsi. p/u 160kIb s/o 1 OOklb. rt.wt. 125k1b 70 rpm.wob 5 -15. tq. 11 -12kIb ftAbs AST =2.8 ART = 1 .2 P rate sliding 20- 35tph. P rate rotating 60- 951ph. Slight losses to hole 1 -2bbls per hr .Run centrifuge MW -9.6 www.peloton.com Report Printed: 8114/2009 • III ipt Marathon Operations Summary Report MAMMA s Oil Company Well Name: KENAI BELUGA UNIT 42 -6X Ops L_ StirtTrne EidTme Durrlrs) OPs Ccde AcuitIrCGde Strds Trouble Cade Came it 12:00 18:00 6.00 DRILL ROT AF Drill 12 114 drop section f - 6446' -6678, 550gpm 1450psi. phi 170kIb sio 100k1b. rt.wt. 128k1b 70 rpm.wob 5 -15. tq. 12 -13klb thlbs AST =2.7 ART =1.9 P rate sliding30 -58 tph P rate rotating 60 -110 fph. Run centrifuge MvV- 9.5 18:00 00:00 6.00 DRILL ROT AF Drill 12 114 drop section f - 6678' -6870 550gpm 1450psi. p/u 180klb slo 105k1b. rt.wt. 131 klb 70 rpm.wob 5 -15. tq. 12 -13klb ftAbs AST =2.1 ART =1 .3 P rate sliding30 -58 fph P rate rotating 60 -110 fph. Run centrifuge MW- 9.5 00:00 03:30 3.50 DRILL ROT AF Drill 12 114 drop section f 6870'- 6983'SSOgpm 1450psi. pA.l 180klb sic) 1 OSklb. rt.wt. 131 klb 70 rpm.wob 5 -15. tq. 13 -14klb ftAbs AST = 2.1 ART.7 = P rate sliding30 -58 fph P rate rotating 60 -110 tph. Run centrifuge MW- 9.5. No GainfLoss 03:30 05:00 1 .50 CIRC MUD AF Circ.bottoms up @6983 for sample, as per Marathon Geo.18,000 stks., 563 GPM, 1550PSI, 70 RPM. VVait on evaluation by MOC geo. No losses during circulating 05:00 05:30 0.50 WAITON ORDR AF Wait on orders f/ Marathon Geo. 05:30 06:00 0.50 DRILL ROT AF Drill 12 114 drop section f6983'- 6994550gpm 1450psi. p/u 180klb sio 105klb. rt.vvt. 131 klb 70 rpm.wob 5 -15. tq. 13 -14kIb ftAbs AST 0= ART.20 = P rate rotating 60 -70 fph. Run centrifuge MW- 9.5 No gain! loss Daily Operations Report Date: 4128/2009 Job Category: DRILLING 24 H r Summary Wiper trip,Drill f16983'- 7105',CBU, POOH t /2443', Level derrick, Serv. rig, RIH t17105, Circ cond. mud, POOH ti run csg.SLM opa I_ SmrtTrne Elul The Dr r 0 rel Ops Cale Ax°Wt ccde Sods Trouble Cale Canme it 06:00 08:00 2.00 DRILL ROT AF Drill 12 114 hole section f 6994 -7105' SSOgpm 1450psi. p 1 "o2klb sio 1 OSklb. rt.wt. 130klb 70 rpm.wob 5 -15. tq. 14 -1 Sklb thlbs AST 0= ART 1 .6hr = P rate rotating 60 -70 tph. Run centrifuge MW- 9.5 No gain/ loss. 08:00 09:30 1 .50 CIRC MUD AF Circulate B 1J at 7105' 1575psi 550gpm. Condition hole for wiper trip. No gain/ Loss. Run centrifuge mud weight 9.5+ I 09:30 15:00 5.50 TRIP VV1PR AF PJSM: Monitor well, POH ( Wiper trip) f- 7105 -2500' Back ream and clean up tight hole from 4594 - 4624'. V\Ape and clean up w/o pumping f -4561 -4531 and 4464 -4527' No gainAoss. 15:00 17:00 2.00 SERVIC RIG AF Lube I service rig. Adjust mast and carrier. Mast set at 4 Deg move back to 3 deg. Drillpipe riding towards vee -door side of rotary table. 17:00 20:00 3.00 TRIP VNPR AF PJSM: RIH wiper trip f- 2500'- 7105Wash down f[7041' -7105' Tag bottom no fill. No gains No losses 20:00 23:00 3.00 CIRC MUD AF PJSM;Circ. bottoms up, pump hi visc sweep, before bottoms up, got back 90 bbls.clay,sand, thick mud,cont. circ. hi visc sweep, got back 100% more cuttings than normal. Circ condition mud.Pump =550 GPM 1600 psi.Up wt. =185K Dn wt. =105K Rt wt. =145K. 23:00 03:30 4.50 TRIP DP AF PJSM; POOH f17105' -2500' SLM 03:30 04:00 0.50 CIRC MUD AF Circ. CBU at shoe 2500', 4S0GPtv1 No excessive cutting . No gains no losses. 04:00 06:00 2.00 TRIP DP AF PJSM; Cont. to pull out of hole f12500' Hole slick No Gains No losses Report Date: 4)29,2009 Job Category: DRILLING L- 24 HrGunman/ POOH and L!D BHA. C10 to 9 5/8" CSG rams and test. RAJ CSG tools.PAJ shoe track, circ. thru shoe track, floats OK, RIH w/ 9 5/8 csg., Repair tlowline riser, cont.in hole wI csg. ops L- SY3rtTme EIdThe Durrirsl Ops cc.e AaWjI ccde Sods TroubkCede Came it 06:00 09:00 3.00 TRIP BHA AF PJSM. Cont. to POOH vv/BHA. Bub bit and LAD directional tools. 09:00 09:30 0.50 RUNPUL V AF Pull wear bushing. 09:30 10:30 1.00 RURD OTHR AF PJSM. Close blind rams and charge upper rams to 9 518" CSG rams. RN stabbing board. 10:30 11:00 0.50 RURD OTHR AF PJSM. Adjust top drive torque tube. 11:00 12:30 1.50 TEST BOPE AF PJSM. RAJ and run 9 5/8" test joint and test plug. Test 9 518" Rams2SO2SOOpsi OK. Losing 1 BPH 12:30 13:00 0.50 RURD OTHR AF PJSM. PAJ 13 1/2" X 9 518" hanger assy and landing joint. Make test run and land out against load shoulder in wellhead. Mark landing joint and lay out hanger assv. 13:00 16:00 3.00 RURD CSG AF PJSM. C/O to long bales. RAJ spider elevators and slips. RAJ CSG tongs. www.peloton.com Report Printed: 8714/2009 • Marathon Operations Summary Report r uauTr e u� Oil Compa 1y1 Well Name: KENAI BELUGA UNIT 42 -6X opc L_ SrlartThe Eid The Dor{lrs} Ors Cale ctlit4CaCe ids TroibkCale Canme 16:00 17:30 1.50 RUN CSG AF PJSM. M 1 J and Bakerlok shoe track. Circ. through shoe track and test floats OK. 17:30 02:00 8.50 RUN CSG AF Run 9 518" 4OPPF L -80 Butt CSG.Break circ. at 13 318 shoe 2488', cont. to run in hole to 4880'. 02:00 02:30 0.50 REPAIR RIG TA MSFB PJSM; Stop and repair riser, pulled out while running csg., break circ wi1 17 GPM, 175 psi no gains no losses. 02:30 06:00 3.50 RUN CSG AF PJSM; Cont. to run 9 518 -40# L -80 BTC f12488'- 6000'Up wt. =210K do wt. =70K Run 149 jts. Daily Operations Report Date: 4/30:2009 Job Category: DRILLING 2l H r Simmary Cont. to run 9 518" CSG. Lost circulation while circulating down landing joint. Pump 2 x LCM pills in attempt to heal losses (neg). Cmt 9-5/8" csg in place Cm 7091' (no returns at surface). Rig down crnt equip. Back out & lay down 9 -5r8" landing jt. Install 9 -5 /8" pack -off & test to 5000 psi f 10 min (ok). CIO 9 -5I8" csg rams to 2 -718" x 5 -1 variable pipe rams. Ci0 pump liners fi 5" to 4 ". RIH wi 5" drill pipe. ova slartTrne EIdTrne Dir(I rs) OpsCale .wcumCode SUNS "MINE Ccck Cammert 06:00 07:30 1 .50 RUN CSG AF Cont. to run 9 518" CSG total 173joints. 07:30 08:00 0.50 RUN CSG AF PN Vetco 13 112" X 9 5/8" CSG hanger assy and KU. 08:00 08:30 0.50 RUN CSG AF Circ. casing while running CSG hanger. Land hanger on load shoulder. Shoe 7091' float collar 700T. Decreasing returns while circulating. Lost 116bbls while circulating down wlpartial returns. Losses 84BPH at avg 4BPM. 08:30 09:00 0.50 RURD CSG AF MN casing swedge and attempt to circulate. No circulation. 1 BPM 215psi, pumped away 12 bbls with no circulation. Shut down pumps. Satic losses 3 -SBPH. 09:00 11:00 2.00 RURD CSG TA CPLR V\hile discussing lost circulation with the office LiD Weatherford fill up tool. Drain stack and confirm hanger has landed out. 11:00 12:00 1.00 MIX hv1LID TA CPLR Build volume in mud pits. Add'Aeater and flow vis. avg wt 9.3ppg. 12:00 14:00 2.00 MIX MUD TA CPLR Cont. to build volume in mud pits. RD spider elvevators and 9 518" circulating swedge. RN BJ cement head and cement line. 14:00 18:00 4.00 PUMP LCM AF PJSM. Test cement lines to 3500psi. Open lower annulus valve. Mix and pump with the BJ unit 40bbls LCM pill VW2ppb sure seal C 2BPM. Small trickle of returns out the lower annulus valve.Follow with 40bbI LCM pill(40bbls H20, 2SX Flo Viso ppb), 2SX Polly Pack(2ppb), 11 SX KCL(11 PPB), 24SX SC40(30ppb), 24SX SC250(30ppb), 24SX SC500 30 -50 (30ppb), 4sx X -0 (SC1000) 5ppb, 10SX G- seal(10ppb), 6sx Ventrol 401(6ppb). Displace LCM pills on backside above 9 518" shoe. No returns while pumping and displacing second pill.. 18:00 22:00 4.00 PUMP CMT AF PJSM wi BJ services: Switch to BJ unit. Mix & pump 30 bbl of .0 ppg Sealbond Plus spacer. Drop bottom plug. Batch mix & pum 68acks Class "G" cmt w/ 47% LW -6, 15% BA-90, 1 % CD-32, 0.5% S, 1 .2% FL -63, 0.1 % R -3, 0.05% Static Free, 1 galIl 00 sks FP -6L, 10.5 ppg, 3.321 cu.ft.Isk yield (219 bbls total cmt slurry), 12.675 gal waterlsk (110.45 bbls total mix water), 4:43 hrs thickening time. Drop top plug & pump out w1 5 bbls water. Displace cement wI 526 bbls water. Bumped plug Gj calculated strokes wI 1000 psi over circ pressure. Bled off pressure checked floats (ok). No fluid returns at surface throughout entire job. C.I.P. r 22:00 hrs on 4 -29 -2009. Float shoe set 7091', top of float collar set 7001'. Note: Initial displacement pressure 4 bpm wi 70 psi until 320 bbls were pumped & displacement fluid caught up with plug. Pressure increased fI 70 psi to 540 psi @rn 9300 strokes (est top of cmt 5100') & suddenly decreased to 527 psi. Reduced rate to 2 bpm. Pressure increased f1435 psi to 515 psi prior to reducing rate to 1 bpm to bump the plug. Total fluid losses to formation for the entire day = 1582 bbls. 22:00 00:00 2.00 RURD CMT AF PJSM: RrD cmt head & equipment. Clean rig floor. LrD 9 -518" landing jt. Begin cio pump liners f15" to 4 ". 00:00 01:00 1 .00 TEST V CHD AF PJSM wi Vetco wellhead hands: Install & test 9 -518" pack -off to 5000 psi fI 10 min (ok). Install wear ring. 01:00 03:30 2.50 RURD CSG AF RD stabbing board. Remove long bails. Move top drive rail back. 03:30 04:30 1 .00 RURD OTHR AF PJSM: C/O 9 -518" casing rams to 2 -718" x 5 -112" variable rams. 04:30 06:00 1 .50 RURD OTHR AF PJSM: RIH wi 5" drill pipe JJ 3300'. Continue c/o pump liners. www.peloton.com Report Printed: 8114)2009 • • M,) Marathon Operations Summary Report MARMON s Onn Company Well Name: KENAI BELUGA UNIT 42 -6X Daily Operations Report Date: 5/1/2009 Job Category: DRILLING 1- 24 H r Stmmanf RIH w15" f-1 DP and 5" DP to 634T. LID 5" DP. RIH wi 200 jts 4" drill pipe. Circulate to spot steel tube inside 9 -5!'8" casing f16300' to 500'. POOH w14" drill pipe. ops L- SflrtTtne E1dTtne OlrOM Ops Code Actlir Cale SOtts TroibleCWe Canme 06:00 07:30 1 .50 TRIP DP AF PJSM. RIH open ended w15" hf DP and 5" DP to 6347'. 07:30 13:30 6.00 PULD DP AF PJSM. POOH and LID 5" DP. 13:30 '14:00 0.50 TRIP DP AF PJSM. RIH to 1160' w/5" DP. 14:00 14:30 0.50 PULD DP AF PJSM. POOH L1D 5" DP. 14:30 15:30 1.00 TRIP DP AF PJSM. POOH. Rack back 5" HWDP and 6 1/2" jars. 15:30 18:00 2.50 CHANGE EQIP AF PJSM. CIO top drive saver sub. CO t pipe guides on the top drive. Begin mixing mud. 18:00 02:30 8.50 PULD DP AF PJSM: Drift, PN, MN & RIH w1200 jts 4" HT38 drill pipe. 02:30 03:30 1 .00 CIRC MUD AF Circulate & spot EP -Lube f16300'to 500'. 03:30 06:00 2.50 TRIP DP AF POOH while standing back 4" drill pipe (SLM). Report Date: 5!2!2009 Job Category: DRILLING L 24 H r Stmmary POOH w14" DP and rack back. Run CBL log. Evaluate logs & wait on orders. Test 9 -518" csg to 2000 psi f/ 30 min. RN & test BOPE (VUrtness waived by Bob Noble - AOGCC on 4t25t2009 @ 19:30 hrs). MN 8-1/2" directional BHA. RIH while p/u 4" drill pipe singles. opt L- SlartTtne EldTtne Our OM Opt Cale PatlinvCocle SOtU Trouble Cak Canmett 06:00 08:00 2.00 PULD DP AF Cont. POOH and rack back 4" DP. 08:00 08:30 0.50 PULD DP AF PJSM. RN to PN DP. 08:30 09:00 0.50 RURD ELEC TA CPLR PJSM. RN to run electric line. 09:00 13:30 4.50 RUNPUL ELEC TA CPLR Run CBL log F/7080' to 4400'. CCL was not working. Clean Hansen tank and mix Flo -pro mud and store in Hansen tank. 13:30 16:30 3.00 RUNPUL ELEC TA MDLG POOH and adjust centralizers to Run CCL log. Run CCL log from 7080' to 4400'. PJSM: Rig down wireline. Cont. to mix Flo -pro mud and store in Hansen tank. 16:30 18:00 1.50 VVAITON ORDR TA CPLR PJSM: Evaluate CBL & make decision concerning cement job. Pull wear ring & rig up to test BOPE while waiting on orders. Verbal acceptance to drill ahead given by Jim Regq AOGCC and Tom Zelenka BLM. 18:00 19:00 1.00 TEST CSG AF PJSM: RN & test 9 -5/8" csg to 2000 psi 1130 min (ok). 19:00 00:30 5.50 TEST BOPE AF PJSM: RN & test BOPE & all related components to 250/3500 psi f15 min. Test all gas & PVT alarms. Perform Koomey drawdown test. Check valve in kill line leaking. Disassemble, cleanout, reassemble & retest (ok). L!D test tools. Test witness waived by Bob Noble - AOGCC on 4125/2009 @ 19:30 hrs. 00:30 01:00 0.50 RUNPUL VVESH AF Install wear ring & set lock downs. 01:00 04:30 3.50 PULD BHA AF PJSM wI Inteq crew: PN & MN 8 -1 t2" directional BHA. RIH w15" HVVDP. Shallow test MAID (ok). 04:30 06:00 1.50 TRIP DP AF PJSM: RIH w/ BHA while PN 4" drill pipe singles. Current depth = 2000' @ 06:00 hrs. Report Date: 6/3/2009 Job Category: DRILLING 24 H r Stmmary PN 4" DP while RIH to 5324'. Cont. RIH w /stands to 6899'. Wash down and tag @ 7002'. Drill FCE07007' and shoe track to 7080'. Displace to 9.2ppg Flo -pro mud. Drill out shoe track and shoe @7092'. Clean old hole F/7092' to 7105. Drill new hole F/7105' to 7125'. Perform FIT to 13.Oppg EMv /. Drill 8.5" vertical hole F/7125' to 8031'. ops SlartTtne EEC] The OtrArs) Cps Cale P.ctL come Stittt Trouble Cale Came 06:00 08:00 2.00 PULD DP AF Cont. to PN 4" DP while RIH wt8.5" bit and directional BHA to 5324'(PN total 310jnts 4" DP). 08:00 10:00 2.00 TRIP DP AF PJSM: Cont. to RIH w14" stands of DP from derrick to 6899'. 10:00 11:30 1.50 DRILL CMT AF Wash down from 6899' and tag at 7002'. Drill FC @ 700T. Drill cement in shoe track to 7080'. Changed shaker screens from 200's and 230's to 165s due to EP lube mixing with solids in water and blinding screens. 2 11:30 12:00 0.50 CIRC MUD AF PJSM. Prep to displace hole to 9.2ppg Flo -pr o mud. 12:00 14:00 2.00 CIRC MUD AF Displace hole to 9.2PPG Flo -pro mud @ 300GPM. 14:00 14:15 0.25 DRILL CMT AF Drill cement in shoe track F17080' to float shoe @ 7092'. Clean old hole to 7105'. 14:15 14:30 0.25 DRILL ROT AF Drill 8.5" hole F,7105' to 7125'. 377GPM 1200psi 5ORPM 5K WOB. ART: 0.2 hrs. www.peloton.com Report Printed: 8/1412009 a • Marathon Operations Summary Report _ �_:',OilCompany Well Name: KENAI BELUGA UNIT 42-6X opt a't3rt7me Ebtlrme DIrnrn opacotle Ac:warcuae qua rro,bkCOde canme,t 14:30 15:30 1.00 CIRC MUD AF CBU @ 7125'. 377GPM 1100psi. 15:30 16:00 0.50 TEST LOT AF Perform FIT test to 13PPG EMW(1060psi 9.2PPG MW) 16:00 18:00 2.00 DRILL ROT AF Drill 8 -112" vertical hole F/7125' to 7295' 400GPM 7ORPM 1400psi PAJ175K S/087K ROT 118K TQ 12 -13K MB 5 -8K. ART: 1.3 hrs., AST: 0 hrs. Change shaker screens F1165's to 200's. 18:00 00:00 6.00 DRILL ROT AF Drill 8 -112" vertical hole f/ 7295' -7685' Grn 400 gpm, 1400 psi, wob 5 -10 klbs, 70 rpm, tq 11 -13 kft -Ibs, pAi 175 klbs, s/o 87 kibs, rot wt 120 klbs. ART: 4.0 hrs. AST: 0 hrs. max gas: 135 units, avg bkgnd gas: 28 units. Raised mud wt f/ 9.2 ppg to 9.3 ppg. 00:00 06:00 6.00 DRILL ROT AF PJSM: Drill 8-1:2" vertical hole f/ 7685' -8031' @ 400 gpm, 1600 psi, wob 5 -10 klbs, 70 rpm, tq 11 -13 kft-lbs, p/u 175 kilts, s/o 87 klbs, rot wt 125 klbs. ART: 4.4 hrs. AST: 0 hrs. max gas: 92 units, avg bkgnd gas: 30 units. Raised mud wt t/ 9.3 ppg to 9.6 ppg. Changed shaker screens to 200's & 230's. Daily Operations Report Date: 514/2009 Job Category: DRILLING L 21 H r SJmmary Drill 8 -1.2' vertical hole t/ 8031'- 8346'. Circ hole clean. Make wiper trip t/ 8346' -7086' (backream tight hole f/ 8195'- 7148'). Service rig. R1H (no problems). Wash last std down f/ 8283' - 8346'. Drill ahead 8-12" hole fi 8346'- 9037'. opc SgrtTme EldTmc Dsr(Y OpaCale Rctlilycude Sutra TrorbkCOtle Canmeit 06:00 11:00 5.00 DRILL ROT AF Drill vertical hole F/8031' to 8346' ART=3.4hrs 400GPM 2000psi 7ORPtv1 TQ 11 -12K Ft-lb P/U180K SiO90K ROT125K. ART: 3.4 hrs, AST: 0 hrs 11:00 1 2:00 1.00 CIRC MUD AF Circ. shakers clean(CBUX1) 400GPM, 1500psi, 7ORPM. 12:00 16:30 4.50 TRIP DP AF PJSto1. Flow check (well static). POOH Fi8346' to 8195'. Hole tight @ 8195'. W/R F/8195' to 8157' . Pull F/8157' to 8136' tight @ 8136'. W/R 8156' to 8095'. Pull 8095-8072 tight @ 8072. 'MR F/8093' to 7148'. POOH F/7148' to 7086. W/R with 400GPM 7ORPM. 16:30 17:30 1.00 SERVIC RIG AF PJSM. Service rig. Change oil on #2 generator. Change wiring on #1 cooling tower. 17:30 18:30 1.00 TRIP DP AF PJSM: RIH f/ 7086' -8283' (no problems). Wash last std down f/ 8283' - 8346'. No fill. Trip qas: 76 units. 18:30 00:00 5.50 DRILL ROT AF PJSM: Drill 8-1t2" vertical hole f/ 8346' -8679' @ 400 gpm, 2000 psi, wob 5 -15 klbs, 78 rpm, tq 12 -14 kft -lbs, p/u 210 klbs, s/o 85 klbs, rot wt 132 klbs. ART: 4.0 hrs, AST: 0 hrs, max gas: 189 units, avg bkgnd gas: 25 units. 00:00 06:00 6.00 DRILL ROT AF PJSM: Drill 8-1:2" vertical hole f/ 8679' -9037' @ 400 gpm, 2100 psi, wob 5 -15 klbs, 75 rpm, tq 11 -14 kft-Ibs, Wu 215 klbs, sio 87 klbs, rot wt 135 klbs. ART: 4.6 hrs, AST: 0 hrs, max gas: 225 units, avg bkgnd gas: 35 units. Report Date: 5/512009 Job Category: DRILLING (-- 24 HrSunman( Drill 8 1/2" vertical hole F/9037' to 9479'. Circ. shakers clean. POOH to 9102'. Elevators became jammed on drill pipe connection. Cut pipe and repair elevators. Circ & work pipe @ 9070'. Con't POOH f/ 9102'- 7082'. Slip & cut drilling line. Service rig. RIH & wash last std to bottom (15' fill or bottom). Drill ahead f/ 9479'- 9605'. L,ps Sgrt7me E,tlTme D4r(lrs) OpaCOd2 Act IvCOde Strda TrolbleCafe Came ht 06:00 12:30 6.50 DRILL ROT AF Drill 8 1/2" vertical hole F :9037' to 9479' ART= 4.6hrs AST =Ohrs 400GPM 2050psi W08 8 -14K 7ORPM P/U 218K S/0 87K ROT 136K 14 -16K ft-lb TQ 12:30 13:30 1.00 CIRC MUD AF Circ. shakers clean (CBUX1) 400GPM 2000psi. 13:30 15:30 2.00 TRIP a'MPR AF PJSM. Flow check(static)POOH. Tight @ 9329', 9324', 9320', 9296', 9286'. W/R F/9316 -9260. Cont. POOH tight @ 9200', 9194', 9172', 9117', 9114'. Max overpull 35K. DP connection wedged in elevators @ 9103'. Could riot release elevators. 15:30 17:00 1 .50 WORK PIPE TA MSTB Work through tight spot @ 9081' to be able to get to first connection break off top single of stand. Cont. to work pipe while wait on back up set of elevators. 17:00 18:00 1 .00 RURD OTHR TA MSTB PJSM. Cut DP joint. Mouse hole cut joint. Remove elevators from bales. LiD cut joint and elevators. Break out stub from drill pipe in hole. Screw into drill pipe with top drive. Work drill pipe. 18:00 19:00 1.00 CIRC MUD TA MSTB Circ. and work pipe 9072' -9008' 400GPM 1900psi 503 units gas at BN. Flow check(static)M/U replacement single for cut joint. www.peloton.com Report Printed: 8/1412009 • 0 l ,i� n ,k� Marathon Operations Summary Report 11 r F Oil Company Well Name: KENAI BELUGA UNIT 42-6X opa 1 SlartTme EidTme D urn rs) Ups Col AUlitiiCcde =Is Troible Co]e Came it 19:00 00:00 5.00 TRIP VMPR AF Cori t backream out of tight hole f1 9103' -7844' @ 250 gpm & 75 rpm's. Begin POOH or elevators f/ 7844'- 7091'. Max overpull 25 klbs. Monitor well (static). 00:00 02:00 2.00 SLPCUT DLIN AF PJSM: Slip & cut drilling line. Inspect & cut 533' damaged lire. 02:00 02:30 0.50 SERVIC RIG AF PJSM: Service rig. Lube top drive & carrier. 02:30 04:00 1 .50 TRIP VMPR AF PJSM: RIH f! 7091' - 9418'. 'Wash last std down f/ 9418' -9479' (15' fill on bottom). Bottoms up gas: 2015 units. 04:00 06:00 2.00 DRILL ROT AF Drill 8 -112" vertical hole f19479' -9605' @ 400 gpm, 2050 psi, wob 5 -14 klbs, 76 rpm, tq 12 -14 kft -lbs, plu 210 klbs, slo 90 klbs, rot wt 140 klbs. ART: 1.4 hrs, AST: 0 hrs, max gas: 106 units, avg bkgnd gas: 65 units. Daily Operations Report Date: 51612009 Job Category: DRILLING L- 24 H r Simmary Drill 8-1/2" vertical hole tl 9605' - 9642'. Circ while increase mud wt fl 10.4 ppg to 10.8 ppg. Con't drilling tl 9642' - 10278'. Circ bottoms up sample for geology & cony circ while wait or orders. POOH for wiper trip f/10278'-7091' (backream tight hole fl 9835'- 872a). Service rig. aps L- S -rtTrne EidTme Dir Ors) aps Code A 11JI1/Cale 'mss Troubk Code Came It 06:00 06:30 0.50 DRILL ROT AF Drill 8 112" hole F/9605' to 9642'. Connection gas of 292 units from connection C 9542'. ART= .Shrs. 06:30 07:00 0.50 CIRC MUD AF Circ. and increase mud wt 10.4ppq to 10.8ppg. 07:00 17:00 10.00 DRILL ROT AF PJSM. Drill 8 1)2" vertical hole F19642' to 10150 . Connection gas of 32 units t 9920'. Increase MVV 10.9 to 11 .1 ppg while drill ahead. ART= 7.0hrs. 17:00 20:30 3.50 DRILL ROT AF PJSM. Drill 8 1/2" vertical hole FM 0150' to 10278'. Increase mud wt fl 11 .1 ppg to 11 .3ppg while drill ahead. ART= 3.0hrs. PAJ 230K S/O 100K Rot 148K 400GPM 2500psi 75RPM 12 -14K TQ 20:30 00:00 3.50 CIRC MUD AF Circ bottoms up sample for geology. Con't circ until shakers clean while waiting on decision to drill further. Make simulated connection to check gas. Background gas 40 units, connection gas 21 units. Monitor well (static). 00:00 05:00 5.00 TRIP VMPR AF PJSM: POOH fl 10,278' -9835' (hole pulling tigt Backream out of hole fl 9835' -8723' @ 250 gpm & 75 rpms. Con't POOH f18723- 7091'. 05:00 06:00 1 .00 SERVIC RIO AF PJSM: Service rig. Lube top drive, crown, blocks & carrier. Report Date: 5/712009 Job Category: DRILLING L_ 24 H r Simmary RIH tag @ 9867' wash and ream to TD @ 10278'. Circ. clean. POOH to 8660'. RIH to 10278'. Circ. clean. Flow check and POOH(SLM). LID directional BHA. RAJ & run e -logs on wireline. aps L SlartTrne EidTme Our Ars) op4Cotle Fc1LIk'Code 3[ids TroibkCode Come it 06:00 08:00 2.00 TRIP DP AF RIH w14" DP. TAG @ 986T. WP. to TD @ 10278'. 08:00 10:30 2.50 CIRC MUD AF Circ. shakers clean. CBU X 2. Max gas 1298 units. Large quantity of cuttings across shakers Cep first B J. 10:30 12:00 1.50 TRIP DP AF Flow check (static). POOH to 8660'. 12:00 12:30 0.50 TRIP DP AF RIH. Wash last stand down 10,236' to 10,278' no fill. 12:30 14:30 2.00 CIRC MUD AF Circ. shakers clean(CBU X1) max gas 467 units. Flow check(well static). Pump dry job. 14:30 21:30 7.00 TRIP DP AF PJSM: POOH w14" drill pipe f110278' -793' (SLM). No corrections. No problems pulling out. 21:30 23:30 2.00 PULD BHA AF PJSM: Rack back 5" HWDP. LD directional BHA. 23:30 00:00 0.50 CLEAN RIG AF Clear & clean rig floor. Remove MIND pressure transducer. 00:00 06:00 6.00 RUNPUL ELEC AF PJSM wiWeatherford wireline crew. RAJ & run quad -combo logs on wireline tl 10276'- 6420'. Note: Hit bridge @ 9250' while running in. Hit tight spots ij 9665', 9650', 8950' & 8710' while logging up. Report Date: 518.2009 Job Category: DRILLING L_ 24 H r Sirrimary Con't run quad -combo logs. RAJ & run MFT's. ops L_ St3rtTme Eid Tme D i r (1 rs) aps Code A tlullrCcde Sods Troibk Code Come it 06:00 09:00 3.00 LOG OH AF Cont. to run Quad combo to CSG shoe @ 7096'. Log in CSG to 2500'. POOH vw/Quad combo log. 09:00 12:00 3.00 LOG OH AF RAJ MFT log. RIH to CSH shoe (di 7096'. Wait for test points from Geologist. 12:00 15:30 3.50 LOG OH AF PJSM. Cont. to set at CSG shoe and wait for test paints from Geologist. Clean and organize rig while waiting on points. www.peloton.com Report Printed: 8114'2009 • 0 i Marathon Operations Summary Report T S Oil Company Well Name: KENAI BELUGA UNIT 42-6X Ops I_ I SgrtTtne ad The 0ir(Irs) Ops Code AcIlltiCade Sins TroibkCak Came it 15:30 18:00 2.50 LOG OH AF RIH to 9263'. Correlate on depth and run MFT's. 7 of 47 points done by 18:00hrs. 18:00 06:00 12.00 LOG OH AF PJSM: Con't running MFT's. Total 30 of 47 points by 06:00 hrs. While logging: Scrub roof on pits, pump room & pump #3. Repair hydraulic leak on tugger control & trip tank control. Scrub inside pit room, exterior of pump room & carrier. Daily Operations Report Date: 5,1/2009 Job Category: DRILLING 1 24 Hr Sunman; Con't run MFT test tool. RID loggers. Pi1J 8.5" bit and RIH. CBU. Inc mud wt to 11 .5 ppg. POOH @ 8200'. Move to completion phase @ 18:00 hrs on 5/8/2009. ops I_ G ErdTtrrc Our(1re) Opt Cock Act uttiCe6 SMIs Trouble Ccde Came it 06:00 09:00 3.00 LOG OH AF Cont. to run MFT tool. 38147 test taken @ 09:O0hrs. Clean and organize rig while logging. 09:00 10:00 1.00 LOG OH TA MDLG POOH due to MFT tool failure. Change test tool pad arid maintenance tool. Clean and organize rig while logging. 10:00 13:00 3.00 LOG OH TA MDLG RIH Attempt to run MFT test tool. Tool failed to get valid tests. 13:00 14:30 1.50 LOG OH TA MDLG POOH wity1FT tool. Clean tool and purge with oil. RIH. 14:30 17:30 3.00 LOG OH TA MDLG Cont. to run MFT tool. Total points tested 42147. POOH w,MFT. 17:30 18:00 0.50 LOG OH AF PJSM. RID Weatherford logging. Move to completion phase @ 18:00 hrs. on 5/3/2008. Report Date: 5/9/2009 Job Category: DRILLING L_ 24 H r Stmmanf Cont run MFT test tool. RD loggers. PIN 8.5" bit and RIH. CBU. Inc mud wt to 11 .5 ppg. POOH to CSG shoe. Moved to completion phase @ 18:00 hrs on 5/8/2009. ops SgrtTtne Erdrtm 0urOrs) Ops Cale ActlittieWe Suds Trouble Cock Canmebt 18:00 23:30 5.50 TRIP W1PR AF PJSM: M1J 8 -1 /2" bit & RIH to 10220' (no problems ). Wash down last std to bottom (110220'- 10278' (no fill). 23:30 05:00 5.50 CIRC MUD AF PJSM: Circ hole clean. BU gas 2774 units. LEL = 6% in pit room. Shut in well & circ thru gas buster until gas dropped off. Increase mud wt f/ 11 .3 ppg to 11.5 ppg. Monitor well (static). Pump dry job. Note: Gas buster u -tube on return line packed oft with scale. 05:00 06:00 1 .00 TRIP VNPR AF PJSM: POOH fl 10278'- 8200'. Work tight spots @ 10250', 9960', 9640', 9320' & 8360'. Current depth @ 06:00 hrs = 8200'. Report Date: 511012009 Job Category: DRILLING 24lir Gunman; Cont. to POOH to CSG shoe. RIH to TD. Circ. shakers clean. POOH to CSG shoe. Le DP, BHA and bit. Pull wear ring. RN & test upper variables. Clear rig floor. RN to run 3-1/2" csg. o p` 1_ SttrtTtne ErdThe DIr(lrs) Or Code Actmcccie St3ds Tro4ble Code Canmeit 06:00 07:00 1 .00 TRIP DP AF Cont. to POOH to the CSG shoe @ 7096'. 07:00 08:30 1 .50 TRIP DP AF PJSM. RIH to 10278' no bridges or tight spots. Wash last stand down(8' fill). 08:30 10:30 2.00 CIRC MUD AF Circ. shakers clean(CBUX1). Max gas 75 units. Good amount of cuttings and coal over shakers at B1J. Flow check(well static). Pump dry job. 10:30 13:00 2.50 TRIP DP AF PJSM. POOH to CSG shoe. Tight spots @ 10,040', 9985', 9960', 9850'. Work tight spots with no problem. 13:00 13:30 0.50 REPAIR RIG AF Clean oil off of top drive(gear box leaking). Grease seals on top drive gear box to prevent gear box from leaking. Clean oil off of dog house and choke house roofs. 13:30 18:00 4.50 PULD DP AF PJSM. POOH while LID 148 jts 4" dp. 18:00 19:30 1.50 PULD DP AF PJSM: RIH w152 stds dp in derrick. 19:30 02:00 6.50 PULD DP AF PJSM: POOH while LID 162 jts 4" dp & 21 jts 5" hwdp. LiD jars, bit & bit sub. 02:00 02:30 0.50 RLINPUL WEISH AF Pull wear ring. 02:30 04:00 1 .50 TEST BOPE AF PJSM: RN & test upper 2 -718" x 5-1/2" variable rams on 3-1/2" test ft to 250/3500 psi f/ 5min. 04:00 06:00 2.00 RURD CSG AF Prep for csg: Clear off rig floor. LID tongs, spinners, XIO's, floor valves, bails & elevators. Report Date: 511/2009 Job Category: DRILLING 24 Hr Slmmary Cont. RN CSG tools. Run 3-1/2" Excape completion to 10239'. CBU. www.peloton.com Report Printed: 814/2009 ,,n�,om� Marathon Operations Summary Report ' 'f , Oil Company Well Name: KENAI BELUGA UNIT 42 -6X ops I_ StartTne EKI Tine 0irOrs) OpsCade Ac1LtVCcSe Gnus Trouble Cale Came it 06:00 07:30 1.50 KURD CSG AF Cont. to RAJ to run 3 1r2" Excape completion. 07:30 08:00 0.50 SAFETY MTG AF Hold PJSM for running 3 1/2" Excape completion with all involved personnel. 08:00 08:30 0.50 RURD CSG AF RAJ control line sheave for Excape control lines. 08:30 10:00 1 .50 RUN CSG AF M/U 3 1/2" Excape shoe track and check float(OK). Run 3 1x2" 9.3PPF L -80 EUE -mod Excape completion to 968'. 10:00 15:30 5.50 RUN CSG AF Cont. to run 10 Excape modules and 2 chemical injection mandrels to 2748'. Note(PJSM w /crew coming on @ 12:O0hrs) 15:30 16:00 0.50 CIRC MUD AF Circ. 3 1 /2" CSG 125GPM 240psi. Change hydraulic hose on carrier engine #1 and #2. 16:00 23:30 7.50 RUN CSG AF Cony RIH w/ a total of 211 of 310 jts 3-1/2", 9.3 ppf, L -80, Mod EUE csg to 7085' while banding 1 x sacrificial & 2 x control lines. 23:30 00:00 0.50 CIRC MUD AF Ciro 1 x csg volume C 7085' @ 5 bpm wi 850 psi. 00:00 04:00 4.00 RUN CSG AF PJSM w/ all contractors: Cony RIH a total of 310 jts 3-1/2" csg to 10239'. No problems. Note: Replaced it 275 (galled pin) w /jt 312. 04:00 06:00 2.00 CIRC MUD AF CBU X 1 @ 5 bph w/ 1100 psi while reciprocating csg string. PAJ: 115 klbs, _SAO: 66 klbs. Daily Operations Report Date: 5/'12/2009 Job Category: DRILLING L- 24. H r Srmmary Circ 3-1/2" csg, Run depth correlation log. Space out completion 4' down, Cement 3-1/2" csg. Flush surface lines. WOC. Empty & clean pits. Hotbott ROPE. Test csg. Raise stack. Set 3-1.12" csg slips & make rough cut on csg. Move out BOP stack. Ord Start EidTtne DIr(1rs) Ops Cale Ac1LIVCc. Stan Trorbk Canme 06:00 07:30 1 .50 CIRC t.1UD AF Circ. 3 1f2" CSG. 210GPM 1050psi Max gas 238units. 07:30 08:00 0.50 RUNPUL ELEC AF PJSM. RAJ Expro EL. 08:00 11:00 3.00 LOG CSG AF Run GR -CCL correlation log. 11:00 12:00 1.00 RURD CSG AF PAJ 8' casing pup jt & space out 4' down with completion. RN cmt head & wash down line. LAD Weatherford csg tools. 12:00 14:30 2.50 PUMP CMT AF PJSM wA BJ services: Switch to BJ unit, pump 4 bbls water-test cmt lines to 4000 psi (ok). Pump 40 bbl MCS -4D spacer. Mix & pump.1431,sacks Class "G" cmt w/ 1.2% BA -56, 0.5% EC-1, 0.3% CD -32, 0.2% - SMS, 0.2% R -3, 0.05% Static Free,1 gal/1 00 sks FP -6L, 15.8 ppg, 1 .16 cu .ft. /sk yield (285 bbls total cmt slurry), 4.91 gal water /sk (169 bbls total mix water), 4:33 hrs thickening time. Flush lines, drop wiper plug & displace cmt w/ 89.4 bbls 8.5 ppg KCL brine. Plug did not bump ( calculated 89 bbl displacement. Stopped pumping. Attempt to bleed off & check floats (floats did not hold). Bled back 3.5 bbls fluid. Closed bleeder & csg string pressured up to 2400 psi. Pump back 3.5 bbl & shut in at cement head. Continue holding 2400 psi on csg string. Had 100% returns during entire job. C.I.P. @ 14:00 hrs on 5 -11 -2009. Float shoe set fb 10243.8', top of float collar set ern, 10207.0'. 14:30 00:00 9.50 NUND BOPE AF PJSM: R/D drip pan. L/D mouse hole. Haul oft mud. Flush pumps #1, 2 & 3, choke manifold, top drive, stack & all mud lines through the pop -offs. Hotbott stack & prep to lift. Bleed off pressure on csg & remove cmt head. Pull riser. ND choke & kill lines, fill up, bleeder & trip tank lines. Clean trip tank & remove actuator & pump. 00:00 02:00 2.00 NUND BOPE AF PJSM: Clean pits. Remove variable rams. RD Koomey lines. Prep stack to remove. 02:00 03:00 1 .00 TEST CS0 AF PJSM: RAJ & test 3-1/2" csg to 2500 psi f/ 30 min (good test). 03:00 05:00 2.00 NUND BOPE AF PJSM w/ all service personnel: Pull 90 klbs (including 15 klbs block wt) & set 3-1/2" csg slips. Slips set w/ 75 klbs (actual tension on tubing hanger). 05:00 06:00 1 .00 NUND BOPE AF PJSM: Move out & rack BOP stack from cellar. Remove annular preventer from stack. Report Date: 5/13/2009 Job Category: DRILLING 24 H r Simmary NAJ & test tree. RID GD-1. ops I St3rtTine EidTine Dlrr}rsr OpsCode AutLtVCOde Stites TrolbkCozk Come 06:00 11:00 5.00 NUND TREE AF Cont. to NAJ Vetco MB -196 3 1x2" X 13 5/8" 5M TBG bonnet X 3 1/16" 1 OM tree. 11:00 14:00 3.00 TEST TREE AF Test tree void to 5000psitl Omin. Test tree to 5000psi/1I 0min(chart). Test tree to 10000psi/1 Omin wNetco pump. Pull TW0. Install BPV. Note First test on tree failed, replace two way check and re test, Test passed. www.peloton.com Report Printed: 8/14/2009 • • • Marathon Operations Summary Report Oil Company Well Name: KENAI BELUGA UNIT 42 - 6X L— St3rtTme Er1Tme Dir¢rs} OpaCc. Ac1Lt14iCc.i Scads Trouble Cale Canmert 14:00 18:00 4.00 RURD RIG AF LAD elevators & bails. RID service loop. Clean up top drive and prep for storage. Break down BOP stack for shipment to Anchorage. Move off all mud products and ship to MI Kenai yard. Load out all rental tools and ship to Weatherfords yard in Kenai. Remove berm from rig. 18:00 00:00 6.00 RURD RIG AF PJSM: RID HCR, manual choke valve & kill line valves. RAD mud manifold, fill up bleeder, kill & choke hoses, & snub post. Steam clean top drive. Remove saver sub & kelly cock. RID torque bushing, service loop & kelly hose. LAD top drive. Remove liners in mud pumps #1, 2 & 3. Pickle test pump. Remove valve seats & break down swab heads in pumps 1 & 2. RID service lines to pump #3, geolograph, turnbuckles on torque tube & choke lines to poor boy & flow line. Set liner and matting boards on 41 -18 pad 00:00 06:00 6.00 RURD RIG AF PJSM: RID torque tube. Repin counter weights for tongs. Service & grease test pump. RID dresser sleeves. RID u -tube & lower poor boy. LAD BOP connex stairs. LAD beaver slide. Scrub rig floor & inner walls. RID derrick board. Winterize drawworks. Shut down boiler. Organize location & prep for rig move. Daily Operations Report Date: 511442009 Job Category: DRILLING 24 H r Srmmary RiU mast , crane down wind walls,dog and choke houses. remove fuel tank.prep loads for move to 41 -18 pad. Release rig to Maintenance at 2400hrs 5 -13 -2009 ops L_ StartTme EYdTme Der(irs) OpsCak Actilucaie Stalls Trothk cock Canme 06:00 07:00 1 .00 RURD RIG AF Continue RID.GD -1 . Scope mast down to floor level. Load out epoch and MD D cabin. 07:00 08:00 1.00 RURD RIG AF PTSM: RID driller's console, hydraulic, electric & service lines from sub to rig floor. 08:00 15:30 7.50 RURD RIG AF PJSM wI ASRC crane operator: Crane down wind walls, back landing . Lay mast down on carrier. Crane down Wndwalls, dog house, drillers side gray iron, panic line, choke house, flow line, back stairs & landing, Remove gray iron from sub . Load out and move to 41 -18 pad. Load out BOPE and ship to Weatherfords yard Kenai . Split pits and pull remaing electrical and control) lines 15:30 00:00 8.50 RURD RIG AF Load out water tank, boiler and generator houses and move to 41 -18 pad. Load out centrifuge units and cuttings tank . Move carrier off mud boat and move to 41 -18 pad.. Load out mud boat . Move sub off well center, scope down and move to 41- 18 pad. Release rig from KBU 42-6X at 2400hrs 5 -13 -09 and move to Maintenance at 41 -18 pad Report Date: 5115/2009 Job Category: COMPLETION 24 HrGunmary Ran Gauge Rng to 10,073 MD. Ran PDS caliper from 10,073 back to surface ova SartTme ErdTme 04rfirs) Ops ActkitifCccle Stills Trolble Cole Canme 07:30 08:00 0.50 SAFETY MTG AF PJSM - Reviewed JSA and assigned jobs. Topics discussed were slips, trips, falls. Active gas production pad. Red lights for fire, blue lights for gas emission. Sirens for audible alarm. Muster area at entrance to pad. Emergencies - call 283 -1305, three rings, no answer, call 911 direct. Emergency vehicle and driver assigned. Overhead loads, pinch points. Rig mats have been moved up to wellhead, need to cover openings not covered by mats. 08:00 09:00 1 .00 RURD SLIK AF rig up Pollard wireline slickline unit, mast truck and BOP 1 LUBRICATOR. 09:00 10:00 1 .00 RUNPUL SLIK AF Run gauge ring - 2.75 inch OD to bottom. Deepest depth reached was 10,073 feet MD. Pull out of hole. 10:00 15:30 5.50 RUNPUL SLIK AF Run PDS digital 24 finger caliper from 10,073' MD back to surface. Data is digitally recorded. 15:30 16:15 0.75 RURD SLIK AF Rig down slickline unit, crane truck and BOP 1 Lubricator 16:15 16:30 0.25 SECURE WELL AF secure wellhead, turn in work permit, leave location Report Date: 512912009 Job Category: COMPLETION 24 H r SImmary Rig up Expro wireline, run CBLIOR and Temp log tied into Weatherford OH log dated 5 May 2009. Rig down wireline and turn well over to facilities group to tie well into pipeline www.peloton.com Report Printed: 811412009 • • #■ Marathon Operations Summary Report s Oil Cornpany Well Name: KENAI BELUGA UNIT 42-6X ova StartTrne EidTrne Drrrlrs' Op$Cak Acljt(Code =Is Trouble Col Canme 06:00 08:00 2.00 SAFETY MTG AF Arrive location, receive work permit and hold PJSM - topics discussed - sirrultaneous operations, discussed JSA - assigned work, discussed jobs, overhead loads, pinch paints, slips, trips, falls, soft ground, spotting crane, planking under legs, emergency phone numbers - 283 -1305, let it ring 3 times, no answer, call 911. Active gas production pad, red lights for fire, blue lights for gas emission, sirens, muster area. Emgergency vehicle, driver. 08:00 09:00 1 .00 RURD ELEC AF RU electric wirline truck, crane. Prepare CBL, temp, GR, collar locator tools. 09:00 13:00 4.00 RUNPUL ELEC AF Tied in CBL/GR/CCL into Weatherford open hole log date 3/5.109. PBTD was 10,062 ' MD. Cement top is at 5840' MD 13:00 15:30 2.50 RUNPUL ELEC AF Run temp log from cement top to PBTD (10,062' MD) 15:30 16:00 0.50 RURD ELEC AF RD wirline unit, crane, packoff, close all wellhead valves. Move off location. 16:00 16:15 0.25 SECURE WELL AF Ensure valves are closed, secure wellhead for evening, leave location, turn in work permit. Daily Operations Report Date: 7)2912009 Job Category: COMPLETION 24 H r Simmar BOP test, pressure test, perforated Module 1 -9251 ft - 9261 ft. o p L_ Start ErdTrne DrrOrs) Ops Cale Airvccoe Stads Tro,bkCcba Came It 13:00 13:30 0.50 SAFETY MTG AF Safety meeting -PJSM - topics discussed - simultaneous operations, discussed JSA - assigned work, discussed jobs, overhead loads, pinch points, slips, trips, falls, emergency phone numbers - 283 -1305, let it ring 3 times, no answer, call 911. Active gas production pad, red lights for fire, blue lights for gas emission, sirens, muster area. Emgergency vehicle, driver. No cell phone usage on pad, possible volcano activity, three second rule, buddy system, muster area sign in sheet, sign out sheet, PPE 13:30 14:30 1 .00 TEST WLHD AF Pressure test wellhead and flowback iron including Expro well test iron. Shell test to 200# - good, pressure test to 4500# - test good. 14:30 16:00 1 .50 TEST ROPE AF Pressure test BOP on ELI COILTECH unit according to AOGCC standards. Test successful. 16:00 16:30 0.50 PERF CSG AF Perforate module 1. Perforated interval 9251 - 9261 feet MD. Pressure to activate firiring head 3240 #. Firing verified acoustically and visually at wellhead 16:30 17:00 0.50 SECURE WELL AF _secure wellhead tor evening, leave location, turn in work permit. Report Date: 7130)2009 Job Category: COMPLETION 24 H r simian/ Frac'd first 7 intervals. Screened out during 10 pound stage on Frac #7. R1J CT and cleaned out well down to 8500 ft, shut down for night. ops L_ StirtTrne E 1Trne DrrArs) OpaCade Ac11r11rCOde Stalls Trouble Ccde Come it 07:30 08:00 0.50 SAFETY MTG AF PJSM - topics discussed - simultaneous operations, discussed JSA - assigned work, discussed jobs, overhead loads, pinch paints, slips, trips, falls, soft ground, spotting crane, emergency phone numbers - 283 -1305, let it ring 3 times, no answer, call 911. Active gas production pad, red lights for fire, blue lights for gas emission, sirens, muster area. Emgergency vehicle, driver. No cell phone usage on pad, possible volcano activity. Full PPE required. Pressure tests, must bleed off pressure to under 5000# before handing over to Expro Well test. 08:00 09:00 1 .00 TEST WLHD AF Pressure test wellhead and treatment lines to 9500 #. Test good up to wellhead tree. Some leakoff through swab valve and upper master valves. Isolated tree and test good. 09:00 09:30 0.50 MIX FLD AF Gel up completion fluid to start frac 09:30 10:00 0.50 PUMP FRAC AF Fracture stimulate Module 1 - 9251 - 9261 ft MD. Breakdown pressure 2722 #. Pumped 1 t2# I gallon scour. Rate 16.3 Pressure 5430, Pumped 1# sand, no flex, pressure 3695 #. Pumped 3 #, rate 16.4, pressure 3300 #, Pumped 4 #, pressure 3379 #, Pumped 5 #, pressure 3474 #. Switched to flush 82.5 BBL. Stimulation successfully away. Pumped 280 BBL fluid and 11,550# - 20/40 Ottawa sand. 10:00 10:30 0.50 PERF CSG AF Perforate Modules 2 and 3. Module 2 pressure to actuate firing head - 5130, Module 3 - pressure to actuate firing head 6200 #. Firings verified by sensors on wellhead. www.peloton.com Report Printed: 8/14/2009 • ( M) �� ara�on Operations Summary Report 1 Com Well Name: KENAI BELUGA UNIT 42-6X ops L_ SttrtTlne Eid Time DIrflrs) Opt Cock Act utliCock Stags Trouble Cale Came It 10:30 11:00 0.50 PUMP FRAC AF Pump Interval 2 - 216 BBL fluid, Sand - 17,792 #. Pumped 1# - rate 16.4, Pressure - 3270 #, Pumped 2# - rate- 16.4, P - 2870 #, Pumped 3 #- rate 16.6 BPM, P - 2758 #, Pumped 5# - Rate 16.6 BPM, P- 2917 #, Pumped 6# - rate 16.6 BPM, P - 2989# ISIP - 2080# 11:00 11:15 0.25 PERF CSG AF perforate Module 4 - interval 8871 -8881 ft. MD Firing head actuation pressure 7210 #. Firing verified at wellhead 11:15 11:45 0.50 PUMP FRAC AF Pump interval 3 - 149 BBL fluid, Sand - 5,149 #. Pumped 1# - rate 16.6, Pressure - 4400 #, Pumped 2# - rate- 16.4, P - 4221#, Pumped 3 #- rate 16.5 BPM, P - 4290 #, ISIP - 2917# 11:45 12:00 0.25 PERF CSG AF perforate Module 5 - interval 8701 -8711 ft. MD Firing head actuation pressure 8003 #. Firing verified at wellhead 12:00 12:30 0.50 PUMP FRAC AF Pump Interval 4 - 184 BBL fluid, Sand - 17,314 #. Pumped 1# - rate 16.3, Pressure - 3658 #, Pumped 2# - rate- 16.2, P - 3509 #, Pumped 4 #- rate 16.6 BPM, P - 3650 #, Pumped 6# - Rate 16.5 BPM, P- 3925 #, Pumped 8# - rate 16.5 BPM, P - 3967# ISIP - 2653# 12:30 12:45 0.25 PERF CSG AF perforate Module 6 - interval 8559- 8569ft. MD Firing head actuation pressure 3860 #. Firing verified at wellhead 12:45 13:15 0.50 PUMP FRAC AF Pump Interval 5 - 142 BBL fluid, Sand - 22,269 #, Flex - 1140 #. Pumped 2# - rate 16.3, Pressure - 3457 #, Pumped 4# - rate- 15.8, P - 3360 #, Pumped 6 #- rate 15.9 BPM, P - 3636 #, Pumped 8# - Rate 16.4 BPM, P- 4526 #, Pumped 10# - rate 16.4 BPM, P - Screened out as 10# entered formation, Max. Surface Pressure 9100# 13:15 14:15 1 .00 FLOW BACK AF Attempt to flow back proppant from Interval 5, got back 37 bbls of fluid, no sand. Well died. Prepare to cleanout with CTU 14:15 15:45 1.50 RURD COIL TA NDFL RN CT for cleanout. Approximate top of sand at 6500 ft. 15:45 19:45 4.00 RUNPUL COIL TA NDFL Coiled tubing cleanout. Clean out to 8650 feet coiled tubing measured depth. Pump rate 1 .75 BPM, pump pressure 2000 #, W-IP - 40# 19:45 20:15 0.50 RURD COIL TA NDFL Rigged down CT unit. Set back injector head 20:15 20:30 0.25 SECURE WELL TA NDFL secure wellhead, leave location, turn it work permit Daily Operations f Report Date: 7131/2009 Job Category: COMPLETION L 24 M r SImmar• Shot Mod 7, no breakdown, cleared out opa StartTlne The Dtrfire) OpsCa7e ActkiltiCack Stags Trolble Cole Canme 07:30 08:00 0.50 SAFETY MTG AF Pre -job safety meeting. Discussed hand safety, gas pad emergency signals lights, pinch points, muster areas, sign -out sheets. 08:00 09:00 1 .00 RURD STIM TA NDFL Test frac lines, hydrate fluid. 09:00 09:15 0.25 PERF CSG TA NDFL Perforate Module 7, poor indication at surface that module perforated. Electrical sensors indicated gun firing. 09:15 09:45 0.50 PUMP WTR TA NDFL Pumped into interval with no sign of formation breakdown. Tubing pressure quickly jumped to 7700 psi @ 1.5 -2 BPM pump rate. Pressured to 7500 psi four times with no success. Bled applied pressure quickly to flow back tank after each pressure attempt and tried to move possible sand plug by surging the well. 09:45 10:00 0.25 PERF CSG TA NDFL Repressured Red Excape line to 5600 psi to ensure gun had fired and module was actuated. No additional indication at surface that guns fired late. Bled pressure off Red Excape line. 10:00 14:00 4.00 WAITON OTHR TA NDFL Made decision to RIH wi electric line and reperf Excape Module #7. Wait or Expro to arrive from offshore platform. 14:00 15:00 1 .00 RURD ELEC TA NDFL RN Expro wireline. Test lubricator and discuss job. 15:00 17:30 2.50 RUNPUL ELEC TA NDFL RIH w12.65" OD gauge ring and collar locator. Correlate on depth using CBL. Tag fill @ 8346', approximately 8 ft. above uppermost perforation in Module #7. Make call to Coiled Tubing for clean out run. 17:30 18:00 0.50 RURD ELEC TA NDFL RD Expro Wjreline. 18:00 19:00 1.00 RURD COIL TA NDFL RN BJ Coiled Tubing. www.peloton.com Report Printed: 8,14'2009 i Marathon Operations Summary Report Oil Company Well Name: KENAI BELUGA UNIT 42 -6X O p s L_ St3rtTtne ErdTtne Our(Yrs) OpsCode AclLIVCale S$ds Trouble Cale Commit 1 9:00 22:00 3.00 RUNPUL COIL TA NDFL RIH w/ Coiled tubing to 8000 ft. Kick on pumps and begin circulating 6% KCI water at 1 .75 BPM. Continue in hole and tag fill at 8342' CT measurement. Increase pump rate to 2.75 BPM and proceed to 8359 ft, circulate in same position 30 minutes to clean perforations and flapper module. CIH to 8363 and circulate 10 minutes. PAJ to 8310' and perform injection test, limited to 4500 psi surface, did not see any clear indication of breakdown. RBIH to 8363', circulate 10 minutes at 1 .75 BPM, did not see any indication of fill. 22:00 23:30 1 .50 RUNPUL COIL TA NDFL POOH w/ CT circulating at 1 .75 BPM and 45 -50 FPM until 7300 ft. Reduce pump rate to 1 BPM and continue POOH at 100 FPM. Daily Operations Report Date: 81112009 Job Category: COMPLETION L__ 24lirSrmmary Ran gauge ring 2.3750" OD down to 8346' MD. Could not get below Mod 7 perforations. Ran 2 118" OD gauge ring. Got down to 8349' MD. Could not get below Mod 7 perforations. Ran 1 11116" OD gauge ring. Got down to 8351' MD. Could not get below Mod 7 perforations. Junk basket had water sample and Beluga sand sample. No frac sand. Probable source from Module 7. RAJ CT and RIH to 8470', small amount of Beluga fines and a small gas bubble circulated to surface. Pulled up to 8310' and performed successful breakdown test. Went back down to 8450' to make sure that Mod. 7 perforations were still open. POOH to 6000' and performed second successful breakdown test. ops L— St1rtTT EldTtne Our Art) Opt Code .W.^tLryCOde St3ds Trouble Cocle Ccmmeit 07:30 08:00 0.50 SAFETY MTG TA NDFL PJSM - TOPICS discussed. Reviewed JSA and assigned jobs. Active gas production pad. Red lights for fire, blue ligt for gas emission, sirens, buddy system, three second rule, focussing on job, muster area, safety phone numbers, emergency vehicles, high pressure, flowback pressures 08:00 08:30 0.50 TEST V4LHD TA NDFL Pressure test treating lines to 9500# - test successful 08:30 09:00 0.50 PUMP WTR TA NDFL Attempt to pump into Module 7 - Perforations not open, no breakdown. Max. Pressure - 7500# 09:00 10:00 1.00 VVAITON EQIP TA NDFL Call out wireline to re- perforate Module 7 with 2 318" OD 4 shots per foot perforating gun. Wait on crew and equipment 10:00 10:30 0.50 SAFETY MTG TA NDFL PJSM - Reviewed JSA's, assigned jobs, active gas production pad, red lights for fire, blue lights for gas emission, sirens, muster area, emergency vehicles, emergency phone numbers 10:30 12:30 2.00 RUNPUL ELEC TA NDFL Run 2 3/8" gauge ring. Bridge at 8346.5 feet MD. Trip back out of hole. 12:30 14:30 2.00 RUNPUL ELEC TA NDFL Run 2118" gauge ring. Bridge at 8349 feet MD. Trip back out of hole. 14:30 16:30 2.00 RUNPUL ELEC TA NDFL Run 1 11116" gauge ring. Bridge at 8351 feet MD. Trip back out of hole. 16:30 18:30 2.00 VVAITON EQIP TA NDFL call out BJ coil unit to clear) out casing. 18:30 19:00 00.50 SAFETY MTG TA NDFL PJSM - TOPICS discussed. Reviewed JSA and assigned jobs. Active gas production pad. Red lights for fire, blue lights for gas emission, sirens, buddy system, three second rule, focussing on job, muster area, safety phone numbers, emergency vehicles, high pressure, flowback pressures 19:00 20:00 1.00 RURD COIL TA NDFL Rig up coiled tubing unit 20:00 01:30 5.50 RUNPUL COIL TA NDFL Run CTU to clean out hole. clean out to 8470 feet MD. CTU pressure 2900 #, WNP - 55 #, fluid rate 1 .75 BPM. Stop in hole at 8309 feet MD, pump in injection test into Mod 7 successful. Pump pressure - 1700 #. Continue to circulate Beluga sand returns clean. Stop at 5999 feet MD. Repeat injection test into Mod. 7 - test successful. POOH 01:30 02:00 0.50 RURD COIL TA NDFL Rig down CTU, set back injector head onto cradle 02:00 02:30 0.50 SECURE WELL TA NDFL Secure wellhead for evening, turn in work permit, leave location Report Date: 8122009 Job Category: COMPLETION L_ 24 H r Slmmary Frac interval 6 -8, CTU cleanout and jet in well. ops (_ StartTtne EldThe Olr(r opsCcck AclutliCale Stills Tremble Cak Came it 06:00 06:30 0.50 SAFETY MTG AF PJSM - TOPICS discussed. Reviewed JSA and assigned jobs. Active gas production pad. Red lights for fire, blue lights for gas emission, sirens, buddy system, three second rule, focussing on job, muster area, safety phone numbers, emergency vehicles, high pressure, flowback pressures 06:30 07:00 0.50 TEST VVLHD AF Pressure test treatment lines to 9500 #, test successful. 07:00 07:30 0.50 PUMP VTR AF Pump into Module 7 - formation breakdown at 2582# at 5 BPM 07:30 08:00 0.50 PUMP FRAC TA MSSM Pump frac into Module 7 - pump pad, start 2# !gallon slurry, broke hydraulic line on hydration unit. Displaced 2# slurry with 75 BBL clean fluid. Shut down for repairs. Total of 250 bbls pumped down well. www.peloton.com Report Printed: 8114/2009 • • Mara n Operations Summary Report (il vw MARATHON s ail COMPanit Well Name: KENAI BELUGA UNIT 42 -6X Ops SlartTtne ErdTYne Dlr(Irs) Ops Cade Actkel/COtle Stills Trouble Code Canmeit 08:00 11:30 3.50 WAITON EGIP TA MSSM Repairing equipment 11:30 12:00 0.50 PUMP FRAC. AF Pump interval 6 - 497 BBL fluid, Sand - 18,165 #, Flex - 1965 #. Pumped 2# - rate 16.3, Pressure - 2815 psi, Pumped 4# - rate 16.3, Pressure - 2817 psi, Pumped 6# - rate 16.5 BPM, Pressure - 3309 psi, Pumped 8# - rate 16.5 BPM, Pressure - 3337 psi, ISIP - 2133 psi. 12:00 12:15 0.25 PERF CSG AF Fire Module 8 @ 6400 psi, fire Module 9 Ldi 7350 psi. Good indication at surface that guns fired on each module. 12:15 12:30 0.25 PUMP FRAC AF Pump interval 7 - 187 BBL fluid, Sand - 19,558 #, Flex - 2336 #. Pumped 2# - rate 16.3, Pressure - 2351 psi, Pumped 4# - rate 16.3, Pressure - 2283 psi, Pumped 6# - rate 16.3 BPM, Pressure - 2583 psi, Pumped 8# - rate 18.1 BPM, Pressure - 3153 psi, ISIP - 1740 psi. 12:30 13:00 0.50 PERF CSG AF Fire Module 10 [rn 8450 psi. Good indication at surface that guns fired. 13:00 13:15 0.25 PUMP FRAC AF Pump interval 8 - 201 BBL fluid, Sand - 29,050 #, Flex - 3762 #. Pumped 2# - rate 16.2, Pressure - 3017 psi, Pumped 4# - rate 16.2, Pressure - 2771 psi, Pumped 6# - rate 16.2 BPM, Pressure - 2888 psi, Pumped 8# - rate 17.7 BPM, Pressure - 3595 psi, Pumped 10# - rate 18.2 BPM, Pressure - 3819 psi, ISIP - 1803 psi. 13:15 14:30 1.25 KURD STIM AF Rig down frac crew flow lines, get wellhead ready for coiled tubing cleanout. Rig down safety meeting, coil crew safety meeting 14:30 16:00 1 .50 RURD COIL AF Rig up coiled tubing unit 16:00 20:30 4.50 RUNPUL COIL AF Run coiled tubing into hole to clean out sand. Tagged fill at 7858' MD. Tried to circulate through, set down multiple times on fill. No success. Come out of hole to change out BHA . Nozzle changed to 2.5 "OD. 20:30 02:30 6.00 RUNPUL COIL AF Circulate CTU down to bridge, wash through bridge, lost circulation, pulled up above perforations, obtain circulation, started nitrogen. Cleaned out to 10,110. Pulled up above top perforation, cut fluid, increase N2 to 500 scfm. Tripped down to lowest perforation at 7530, started out of hole. 02:30 02:30 Daily Operations Report Date: 8/32009 Job Category: COMPLETION 24 H r SImmary Jetting well in and turning over to well testers Ops StirtTtne ErdTre Drr(i re) Ops Cale ActMCaie Stills Trouble Code Canna Et 06:00 09:00 3.00 RUNPUL COIL AF Cut fluid, jump N2 up to 500 scf 1 min. POOH. Surface pressure 100 #. Turn over to Expro well testers 09:00 09:30 0.50 RURD COIL AF rig down coiled tubing unit, turn well over to Expro Well testers. 09:30 10:00 0.50 PERF DP AF Attempt to perforate chemical) injection mandrel on green control line at 8672 MD. Unsuccessful, control line is open above the module. Line was cut by one of the modules above either during perforating or stimulations. Perforated chemical injection mandrel on red control line at 752110D. - successful. Pump it test was successful. www.peloton.com Report Printed: 814,2009 _ Company: Marathon Oil Company Job Number: 2510747 Calculation Method: Minimum Curvature Mill Field: Kenai Gas Field Magnetic Decl.: 18.56 Proposed Azimuth: 5.52° Borough Kenai Peninsula Grid Corr.: n/a Depth Reference: RKB M INTEQ Well Name: KBU42 -6X Total Survey Corr.: 18.56 Tie Into: Surface MAR AHON Rig: Glacier#1 Target Info: Tool Survey Inc! Azimuth Course TVD VS Coordinates Closure DLS Build Rate Walk Rate No. Type Depth (ft) ( °) Cl Lgth (ft) (ft) (ft) N/S (ft) E/W (ft) Dist (ft) Ang ( °) (° /100') (° /100') ( °/100') • 1 Tie in 0 0.00 0.00 0 0.00 2 MWD 219 1.66 282.65 219 218.97 0.39 0.69 N 3.10 W 3.17 282.65 0.76 0.76 129.06 3 MWD 279 3.67 271.76 60 278.90 0.38 0.94 N 5.86 W 5.94 279.15 3.44 3.35 -18.15 4 MWD 338 6.23 269.84 59 337.68 -0.07 0.99 N 10.95 W 11.00 275.18 4.35 4.34 -3.25 5 MWD 399 9.50 265.85 61 398.10 -1.24 0.62 N 19.29 W 19.30 271.84 5.43 5.36 -6.54 6 MWD 459 13.52 264.90 60 456.88 -3.36 0.36 S 31.21 W 31.22 269.33 6.71 6.70 -1.58 7 MWD 518 15.63 266.86 59 513.98 -5.83 1.41 S 46.02 W 46.04 268.24 3.67 3.58 3.32 8 MWD 578 18.55 269.20 60 571.32 -8.10 1.99 S 63.64 W 63.67 268.21 5.00 4.87 3.90 9 MWD 637 19.04 269.89 59 627.17 -10.08 2.14 S 82.65 W 82.67 268.52 0.91 0.83 1.17 10 MWD 697 19.62 273.27 60 683.79 -11.43 1.58 S 102.49 W 102.50 269.12 2.10 0.97 5.63 11 MWD 757 22.21 279.08 60 739.84 -11.12 0.78 N 123.75 W 123.76 270.36 5.53 4.32 9.68 • 12 MWD 828 25.73 287.58 71 804.73 -7.07 7.56 N 151.71 W 151.90 272.85 6.93 4.96 11.97 13 MWD 892 27.19 292.95 64 862.03 0.22 17.46 N 178.43 W 179.28 275.59 4.38 2.28 8.39 14 MWD 954 26.82 298.17 62 917.28 9.85 29.59 N 203.80 W 205.94 278.26 3.87 -0.60 8.42 15 MWD 1018 26.74 303.02 64 974.42 22.06 44.25 N 228.61 W 232.85 280.96 3.42 -0.13 7.58 16 MWD 1081 27.58 307.47 63 1030.48 36.32 60.85 N 252.07 W 259.31 283.57 3.49 1.33 7.06 17 MWD 1145 27.90 312.47 64 1087.13 53.16 79.98 N 274.88 W 286.27 286.22 3.67 0.50 7.81 18 MWD 1209 28.17 316.19 64 1143.63 72.01 100.99 N 296.38 W 313.11 288.82 2.76 0.42 5.81 19 MWD 1272 28.29 320.21 63 1199.14 92.20 123.19 N 316.23 W 339.38 291.28 3.02 0.19 6.38 20 MWD 1335 28.63 324.95 63 1254.53 114.17 147.02 N 334.46 W 365.35 293.73 3.62 0.54 7.52 21 MWD 1399 29.50 329.33 64 1310.48 138.54 173.13 N 351.30 W 391.65 296.24 3.59 1.36 6.84 22 MWD 1462 30.08 334.11 63 1365.16 164.54 200.68 N 366.11 W 417.50 298.73 3.88 0.92 7.59 23 MWD 1525 30.38 338.20 63 1419.60 192.17 229.68 N 378.92 W 443.10 301.22 3.30 0.48 6.49 24 MWD 1589 30.92 343.03 64 1474.67 221.74 260.44 N 389.73 W 468.74 303.75 3.94 0.84 7.55 25 MWD 1652 31.19 347.54 63 1528.64 252.22 291.85 N 397.98 W 493.52 306.25 3.72 0.43 7.16 26 MWD 1716 32.31 352.07 64 1583.07 284.62 324.98 N 403.91 W 518.42 308.82 4.11 1.75 7.08 27 MWD 1779 33.37 356.61 63 1636.01 318.12 358.96 N 407.26 W 542.88 311.39 4.25 1.68 7.21 28 MWD 1843 34.79 0.61 64 1689.03 353.71 394.79 N 408.11 W 567.82 314.05 4.14 2.22 - 556.25 29 MWD 1906 36.65 2.65 63 1740.17 390.40 431.55 N 407.05 W 593.23 316.67 3.51 2.95 3.24 30 MWD 1969 39.12 1.58 63 1789.89 429.01 470.21 N 405.63 W 620.99 319.22 4.06 3.92 -1.70 31 MWD 2033 41.91 1.14 64 1838.54 470.47 511.77 N 404.65 W 652.42 321.67 4.38 4.36 -0.69 32 MWD 2095 43.63 0.51 62 1884.05 512.43 553.87 N 404.05 W 685.58 323.89 2.86 2.77 -1.02 33 MWD 2159 43.73 0.08 64 1930.34 556.45 598.07 N 403.82 W 721.63 325.97 0.49 0.16 -0.67 34 MWD 2223 44.40 0.80 64 1976.33 600.78 642.57 N 403.47 W 758.74 327.88 1.31 1.05 1.13 35 MWD 2286 46.18 2.73 63 2020.65 645.45 687.32 N 402.08 W 796.29 329.67 3.57 2.83 3.06 • 36 MWD 2348 47.68 3.18 62 2062.99 690.70 732.55 N 399.75 W 834.52 331.38 2.48 2.42 0.73 37 MWD 2412 49.99 5.73 64 2105.12 738.86 780.57 N 395.99 W 875.27 333.10 4.69 3.61 3.98 38 MWD 2464 51.65 6.92 52 2137.97 779.16 820.63 N 391.54 W 909.25 334.49 3.65 3.19 2.29 39 MWD 2581 48.94 8.73 117 2212.71 869.09 909.80 N 379.32 W 985.70 337.37 2.60 -2.32 1.55 40 MWD 2644 49.00 10.63 63 2254.07 916.49 956.64 N 371.32 W 1026.18 338.79 2.28 0.10 3.02 41 MWD 2707 49.58 11.22 63 2295.16 964.03 1003.53 N 362.27 W 1066.92 340.15 1.16 0.92 0.94 42 MWD 2770 51.97 12.94 63 2334.99 1012.50 1051.24 N 352.05 W 1108.63 341.48 4.34 3.79 2.73 43 MWD 2834 53.90 14.30 64 2373.57 1063.06 1100.87 N 340.02 W 1152.18 342.84 3.46 3.02 2.13 44 MWD 2897 54.39 15.41 63 2410.47 1113.44 1150.22 N 326.92 W 1195.78 344.13 1.63 0.78 1.76 45 MWD 2960 54.25 15.63 63 2447.21 1163.84 1199.53 N 313.23 W 1239.75 345.37 0.36 -0.22 0.35 46 MWD 3024 54.72 16.91 64 2484.39 1215.02 1249.54 N 298.64 W 1284.73 346.56 1.79 0.73 2.00 47 MWD 3087 53.38 17.06 63 2521.38 1265.00 1298.31 N 283.74 W 1328.95 347.67 2.14 -2.13 0.24 48 MWD 3151 53.04 16.38 64 2559.71 1315.27 1347.40 N 268.99 W 1373.99 348.71 1.00 -0.53 -1.06 • 49 MWD 3214 54.88 16.52 63 2596.77 1365.29 1396.25 N 254.57 W 1419.27 349.67 2.93 2.92 0.22 50 MWD 3278 55.86 15.32 64 2633.14 1417.08 1446.89 N 240.13 W 1466.68 350.58 2.17 1.53 -1.88 51 MWD 3341 55.66 15.66 63 2668.59 1468.38 1497.08 N 226.22 W 1514.08 351.41 0.55 -0.32 0.54 52 MWD 3402 55.04 15.42 61 2703.27 1517.79 1545.43 N 212.77 W 1560.01 352.16 1.07 -1.02 -0.39 53 MWD 3466 55.34 15.67 64 2739.81 1569.54 1596.05 N 198.69 W 1608.37 352.90 0.57 0.47 0.39 54 MWD 3529 56.05 16.34 63 2775.31 1620.71 1646.08 N 184.34 W 1656.37 353.61 1.43 1.13 1.06 55 MWD 3592 55.95 16.16 63 2810.54 1672.03 1696.22 N 169.72 W 1704.69 354.29 0.29 -0.16 -0.29 56 MWD 3652 55.76 16.25 60 2844.22 1720.82 1743.90 N 155.87 W 1750.85 354.89 0.34 -0.32 0.15 57 MWD 3715 55.57 16.43 63 2879.75 1771.92 1793.82 N 141.23 W 1799.38 355.50 0.38 -0.30 0.29 58 MWD 3779 55.16 15.78 64 2916.13 1823.68 1844.42 N 126.62 W 1848.76 356.07 1.05 -0.64 -1.02 59 MWD 3842 54.84 16.28 63 2952.26 1874.42 1894.02 N 112.37 W 1897.35 356.60 0.83 -0.51 0.79 • 60 MWD 3905 54.45 16.42 63 2988.72 1924.89 1943.32 N 97.91 W 1945.78 357.12 0.65 -0.62 0.22 61 MWD 3968 54.27 15.86 63 3025.43 1975.21 1992.50 N 83.68 W 1994.26 357.60 0.78 -0.29 -0.89 62 MWD 4032 54.45 15.06 64 3062.72 2026.44 2042.63 N 69.81 W 2043.82 358.04 1.05 0.28 -1.25 63 MWD 4095 54.30 14.86 63 3099.42 2076.96 2092.10 N 56.59 W 2092.87 358.45 0.35 -0.24 -0.32 64 MWD 4159 53.69 14.52 64 3137.04 2128.07 2142.18 N 43.46 W 2142.63 358.84 1.05 -0.95 -0.53 65 MWD 4222 53.86 14.20 63 3174.27 2178.29 2191.42 N 30.86 W 2191.64 359.19 0.49 0.27 -0.51 66 MWD 4286 53.71 13.28 64 3212.08 2229.39 2241.58 N 18.59 W 2241.65 359.52 1.18 -0.23 -1.44 67 MWD 4350 53.58 13.29 64 3250.02 2280.46 2291.74 N 6.75 W 2291.75 359.83 0.20 -0.20 0.02 68 MWD 4412 54.43 13.02 62 3286.46 2330.18 2340.58 N 4.67 E 2340.59 0.11 1.42 1.37 -0.44 69 MWD 4476 55.82 13.23 64 3323.05 2382.22 2391.72 N 16.59 E 2391.77 0.40 2.19 2.17 0.33 70 MWD 4539 55.64 14.00 63 3358.53 2433.77 2442.32 N 28.84 E 2442.49 0.68 1.05 -0.29 1.22 71 MWD 4603 55.52 14.08 64 3394.70 2485.98 2493.53 N 41.65 E 2493.88 0.96 0.21 -0.19 0.13 72 MWD 4667 55.43 13.50 64 3430.98 2538.16 2544.74 N 54.22 E 2545.32 1.22 0.76 -0.14 -0.91 • 73 MWD 4729 55.29 14.24 62 3466.22 2588.63 2594.26 N 66.45 E 2595.11 1.47 1.01 -0.23 1.19 74 MWD 4793 55.10 14.21 64 3502.75 2640.57 2645.20 N 79.36 E 2646.39 1.72 0.30 -0.30 -0.05 75 MWD 4856 54.88 13.56 63 3538.89 2691.62 2695.29 N 91.74 E 2696.86 1.95 0.91 -0.35 -1.03 76 MWD 4920 54.69 13.93 64 3575.80 2743.37 2746.09 N 104.17 E 2748.06 2.17 0.56 -0.30 0.58 77 MWD 4983 54.45 13.86 63 3612.32 2794.16 2795.92 N 116.50 E 2798.34 2.39 0.39 -0.38 -0.11 78 MWD 5047 54.22 14.27 64 3649.64 2845.58 2846.35 N 129.13 E 2849.28 2.60 0.63 -0.36 0.64 79 MWD 5110 53.93 13.72 63 3686.60 2896.03 2895.86 N 141.47 E 2899.31 2.80 0.84 -0.46 -0.87 80 MWD 5174 53.83 14.35 64 3724.33 2947.16 2946.01 N 154.01 E 2950.03 2.99 0.81 -0.16 0.98 81 MWD 5237 53.53 13.81 63 3761.64 2997.36 2995.25 N 166.36 E 2999.86 3.18 0.84 -0.48 -0.86 82 MWD 5300 52.86 14.89 63 3799.39 3047.20 3044.11 N 178.86 E 3049.36 3.36 1.74 -1.06 1.71 • 83 MWD 5364 51.48 15.34 64 3838.64 3097.04 3092.91 N 192.03 E 3098.87 3.55 2.23 -2.16 0.70 84 MWD 5427 49.28 16.62 63 3878.81 3144.76 3139.56 N 205.38 E 3146.27 3.74 3.83 -3.49 2.03 85 MWD 5491 46.41 17.57 64 3921.76 3191.24 3184.91 N 219.32 E 3192.45 3.94 4.62 -4.48 1.48 86 MWD 5554 43.29 18.06 63 3966.42 3234.64 3227.21 N 232.91 E 3235.60 4.13 4.98 -4.95 0.78 87 MWD 5617 41.17 18.80 63 4013.06 3275.92 3267.38 N 246.29 E 3276.65 4.31 3.46 -3.37 1.17 88 MWD 5681 39.03 18.97 64 4062.02 3316.02 3306.38 N 259.63 E 3316.56 4.49 3.35 -3.34 0.27 89 MWD 5744 36.95 20.65 63 4111.67 3353.60 3342.86 N 272.76 E 3353.97 4.66 3.69 -3.30 2.67 90 MWD 5808 34.89 20.00 64 4163.49 3389.89 3378.07 N 285.80 E 3390.13 4.84 3.27 -3.22 -1.02 91 MWD 5870 33.08 18.51 62 4214.90 3423.55 3410.78 N 297.24 E 3423.70 4.98 3.21 -2.92 -2.40 92 MWD 5934 31.16 17.42 64 4269.10 3456.78 3443.14 N 307.74 E 3456.87 5.11 3.13 -3.00 -1.70 93 MWD 5997 29.40 16.41 63 4323.51 3487.91 3473.53 N 316.99 E 3487.96 5.21 2.91 -2.79 -1.60 94 MWD 6061 28.05 15.05 64 4379.63 3518.18 3503.13 N 325.34 E 3518.21 5.31 2.34 -2.11 -2.13 95 MWD 6123 26.52 14.47 62 4434.73 3546.23 3530.61 N 332.58 E 3546.24 5.38 2.50 -2.47 -0.94 96 MWD 6187 24.53 14.71 64 4492.48 3573.46 3557.30 N 339.53 E 3573.47 5.45 3.11 -3.11 0.38 97 MWD 6249 23.43 14.59 62 4549.13 3598.34 3581.68 N 345.90 E 3598.34 5.52 1.78 -1.77 -0.19 98 MWD 6312 21.98 12.59 63 4607.25 3622.41 3605.31 N 351.62 E 3622.41 5.57 2.61 -2.30 -3.17 99 MWD 6376 19.57 11.60 64 4667.08 3644.96 3627.50 N 356.39 E 3644.97 5.61 3.81 -3.77 -1.55 • 100 MWD 6439 17.27 11.81 63 4726.85 3664.75 3646.99 N 360.43 E 3664.76 5.64 3.65 -3.65 0.33 101 MWD 6502 15.37 12.72 63 4787.31 3682.33 3664.29 N 364.18 E 3682.34 5.68 3.04 -3.02 1.44 102 MWD 6565 13.23 12.82 63 4848.35 3697.77 3679.47 N 367.62 E 3697.79 5.71 3.40 -3.40 0.16 103 MWD 6629 11.54 12.18 64 4910.86 3711.39 3692.87 N 370.59 E 3711.41 5.73 2.65 -2.64 -1.00 104 MWD 6692 9.37 9.04 63 4972.81 3722.77 3704.09 N 372.73 E 3722.80 5.75 3.56 -3.44 -4.98 105 MWD 6756 7.30 10.47 64 5036.13 3732.02 3713.24 N 374.29 E 3732.05 5.76 3.25 -3.23 2.23 106 MWD 6819 5.55 17.55 63 5098.73 3738.99 3720.08 N 375.93 E 3739.02 5.77 3.04 -2.78 11.24 107 MWD 6883 3.58 27.17 64 5162.53 3743.87 3724.81 N 377.78 E 3743.92 5.79 3.29 -3.08 15.03 108 MWD 6944 1.83 39.26 61 5223.46 3746.45 3727.26 N 379.27 E 3746.50 5.81 3.00 -2.87 19.82 109 MWD 7008 0.89 30.99 64 5287.44 3747.75 3728.47 N 380.17 E 3747.80 5.82 1.50 -1.47 -12.92 110 MWD 7045 0.92 44.62 37 5324.44 3748.24 3728.93 N 380.53 E 3748.30 5.83 0.59 0.08 36.84 111 MWD 7162 0.99 22.91 117 5441.42 3749.94 3730.53 N 381.58 E 3749.99 5.84 0.31 0.06 -18.56 112 MWD 7288 0.56 33.45 126 5567.41 3751.52 3732.05 N 382.34 E 3751.58 5.85 0.36 -0.34 8.37 • 113 MWD 7414 0.50 35.73 126 5693.40 3752.54 3733.01 N 383.00 E 3752.60 5.86 0.05 -0.05 1.81 114 MWD 7603 0.65 33.14 189 5882.39 3754.20 3734.57 N 384.07 E 3754.27 5.87 0.08 0.08 -1.37 115 MWD 7792 0.86 357.92 189 6071.38 3756.56 3736.89 N 384.60 E 3756.63 5.88 0.26 0.11 171.84 116 MWD 7981 0.36 1.78 189 6260.37 3758.55 3738.90 N 384.57 E 3758.63 5.87 0.27 -0.26 - 188.43 117 MWD 8170 0.70 334.08 189 6449.36 3760.13 3740.53 N 384.09 E 3760.20 5.86 0.22 0.18 175.82 118 MWD 8293 0.34 307.12 123 6572.35 3760.96 3741.43 N 383.47 E 3761.03 5.85 0.35 -0.29 -21.92 119 MWD 8485 0.34 266.01 192 6764.35 3761.17 3741.73 N 382.44 E 3761.23 5.84 0.12 0.00 -21.41 120 MWD 8674 0.17 253.90 189 6953.35 3760.97 3741.62 N 381.61 E 3761.03 5.82 0.09 -0.09 -6.41 121 MWD 8862 0.25 259.47 188 7141.35 3760.76 3741.46 N 380.94 E 3760.81 5.81 0.04 0.04 2.96 122 MWD 9051 0.15 199.14 189 7330.34 3760.40 3741.15 N 380.46 E 3760.45 5.81 0.12 -0.05 -31.92 123 MWD 9240 0.28 272.51 189 7519.34 3760.14 3740.94 N 379.91 E 3760.18 5.80 0.15 0.07 38.82 124 MWD 9429 0.31 209.77 189 7708.34 3759.65 3740.52 N 379.20 E 3759.69 5.79 0.16 0.02 -33.20 125 MWD 9619 0.93 225.50 190 7898.33 3758.00 3738.99 N 377.84 E 3758.03 5.77 0.34 0.33 8.28 126 MWD 9808 0.52 234.54 189 8087.31 3756.26 3737.42 N 376.05 E 3756.29 5.75 0.22 -0.22 4.78 127 MWD 9934 0.66 250.33 126 8213.31 3755.58 3736.84 N 374.90 E 3755.60 5.73 0.17 0.11 12.53 128 MWD 10123 0.68 235.26 189 8402.29 3754.39 3735.84 N 372.96 E 3754.41 5.70 0.09 0.01 -7.97 129 MWD 10226 1.03 209.94 103 8505.28 3753.15 3734.69 N 371.99 E 3753.17 5.69 0.49 0.34 -24.58 • 130 MWD 10278 1.03 209.94 52 8557.27 3752.30 3733.88 N 371.52 E 3752.31 5.68 0.00 0.00 0.00 • 0 Marathon - KBU 42 -6x III FORMATION TESTER TEST SUMMARY Hyd Pres Hyd Pres Tool Flow Drawdown Final Shut - Test Before After Volume Rate Pressure in Pressure No. Depth TVD psis psia cc cc /sec psia psia Remarks 1 9263.00 7542.34 4540.00 4518.00 5.0 0.5 72.00 1990.00 GOOD TEST 9263.00 7542.34 4540.00 4518.00 15.0 1.0 68.00 1977.00 GOOD TEST 2 _ _ _ _ _ ERROR NO TEST 3 9256.00 7535.34 4514.00 4514.00 5._ 0 0._ 5 102.00 196 GOOD TEST 9256.00 7535.34 4514.00 4514.00 15.0 1.0 66.00 1949.00 GOOD TEST 4 9043.00 7532.34 4394.00 4390.00 5.0 0.5 107.00 2206.00 GOOD TEST 5 9040.00 7519.34 4390.00 4389.00 5.0 0.5 203.00 2143.00 GOOD TEST 6 9035.00 7514.34 4387.00 4386.00 5.0 0.5 343.00 2115.00 GOOD TEST 7 9019.00 7498.34 4375.00 4375.00 5.0 0.5 671.00 1242.00 GOOD TEST 9019.00 7498.34 4375.00 4375.00 15.0 1.0 324.00 1231.00 GOOD TEST 8 9012.00 7491.34 4372.00 4371.00 5.0 0.5 600.00 1247.00 GOOD TEST 9 9007.00 7486.34 4371.00 4369.00 5.0 0.5 581.00 1232.00 GOOD TEST 10 9003.00 7482.34 4368.00 4367.00 5.0 0.5 554.00 1230.00 GOOD TEST 11 9253.00 7535.34 4524.00 4517.00 5.0 0.5 900.00 1956.00 GOOD TEST 12 8875.00 7154.35 4313.00 4290.00 5.0 0.5 377.00 3780.00 GOOD TEST 13 8707.00 6986.35 4193.00 4194.00 5.0 0.5 369.00 3381.00 GOOD TEST 14 8705.00 6984.35 4192.00 4190.00 5.0 0.5 375.00 3153.00 GOOD TEST 8705.00 6984.35 4192.00 4190.00 15.0 1.0 117.00 3141.00 GOOD TEST 15 8606.00 6885.35 4134.00 4133.00 5.0 0.5 NO SEAL 8606.00 6885.35 4134.00 4133.00 15.0 1.0 NO SEAL 16 8608.00 6887.35 4133.00 4133.00 5.0 0.5 338.00 402.00 TIGHT 17 8599.00 6878.35 4128.00 4128.00 5.0 0.5 340.00 379.00 TIGHT 18 8608.00 6887.35 4135.00 4130.00 5.0 0.5 372.00 3355.00 GOOD TEST 19 8573.00 6852.35 4109.00 4108.00 5.0 0.5 362.00 3357.00 GOOD TEST 20 8563.00 6842.35 4102.00 4102.00 5.0 0.5 372.00 2623.00 GOOD TEST 21 8561.00 6840.35 4102.00 4101.00 5.0 0.5 359.00 389.00 TIGHT 22 8560.00 6839.35 4102.00 4101.00 5.0 0.5 355.00 LOST SEAL 8560.00 6839.35 4102.00 4101.00 5.0 0.5 NO SEAL 23 8451.00 6730.35 4050.00 4035.00 5.0 0.5 329.00 366.00 TIGHT 24 8453.00 6732.35 4038.00 4036.00 5.0 0.5 442.00 2350.00 GOOD TEST 25 8443.00 6722.35 4031.00 4030.00 5.0 0.5 336.00 359.00 TIGHT 26 8445.00 6724.35 4033.00 4031.00 5.0 0.5 344.00 386.00 TIGHT 27 8441.00 6720.35 4029.00 4032.00 5.0 0.5 338.00 2987.00 TIME OUT 28 8439.00 6718.35 4034.00 4033.00 5.0 0.5 NO SEAL 8439.00 6718.35 4034.00 4033.00 5.0 0.5 NO SEAL 29 8434.00 6713.35 4032.00 4031.00 5.0 0.5 NO SEAL 30 8363.00 6642.35 3989.00 3989.00 5.0 0.5 372.00 1757.00 GOOD TEST 31 8361.00 6640.35 3989.00 3989.00 5.0 0.5 NO SEAL 32 8359.00 6638.35 3988.00 3987.00 5.0 0.5 406.00 489.00 TIGHT 33 8353.00 6632.35 3982.00 3983.00 5.0 0.5 298.00 325.00 TIGHT 34 8269.00 6548.35 3934.00 3935.00 5.0 0.5 314.00 333.00 TIGHT 35 8274.00 6553.35 3939.00 3942.00 5.0 0.5 332.00 356.00 TIGHT 36 8280.00 6559.35 3941.00 3940.00 5.0 0.5 350.00 738.00 TIGHT 37 8257.00 6536.35 3926.00 3926.00 5.0 0.5 NO SEAL 8257.00 6536.35 3926.00 3926.00 5.0 0.5 NO SEAL 38 8249.00 6528.35 3922.00 3921.00 5.0 0.5 346.00 3551.00 GOOD TEST 39 8244.00 6523.35 3918.00 3917.00 5.0 0.5 403.00 450.00 TIGHT 40 8242.00 6521.35 3919.00 3918.00 5.0 0.5 298.00 327.00 TIGHT 41 8243.00 6522.35 3920.00 3920.00 5.0 0.5 306.00 330.00 TIGHT 42 8230.00 6509.35 3910.00 3910.00 5.0 0.5 310.00 333.00 TIGHT 43 8196.00 6475.35 3890.00 3894.00 5.0 0.5 387.00 426.00 TIGHT 44 7905.00 6184.37 3754.00 3718.00 5.0 0.5 364.00 2015.00 GOOD TEST 45 7902.00 6181.37 3718.00 3717.00 5.0 0.5 328.00 2048.00 GOOD TEST 46 7896.00 6175.38 3713.00 3713.00 5.0 0.5 282.00 294.00 TIGHT 47 7898.00 6177.38 3716.00 3714.00 5.0 0.5 327.00 2455.00 GOOD TEST 48 7877.00 6156.38 3701.00 3701.00 5.0 0.5 357.00 1814.00 GOOD TEST 49 7852.00 6131.38 3686.00 3687.00 5.0 0.5 352.00 1380.00 GOOD TEST 50 7845.00 6124.38 3683.00 3683.00 5.0 0.5 317.00 356.00 TIGHT 51 7846.00 6125.38 3686.00 3683.00 5.0 0.5 323.00 1423.00 GOOD TEST 52 7838.00 6117.38 3678.00 3679.00 5.0 0.5 283.00 314.00 TIGHT • • S 's - ', It . k� ` S k� ' N F tl 1 SEAN PARNELL, GOVERNOR ) L , Lr0 u i L-, Li) LI Lai, L....., IRA cl...),) ALASKA OIL GAS 333 W. 7th AVENUE, SUITE 100 CONSERVATION COMMISSION / ANCHORAGE, ALASKA 99501 -3539 PHONE (907) 279 -1433 p FAX (907) 276 -7542 Mr. Kevin J. Skiba Regulatory compliance Technician Marathon Oil Company P.O. Box 1949 Kenai, Alaska 99611 -1949 Re: Kenai Gas Field, Beluga & Tyonek Pools Sundry Number: 309 -263 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, 0 i ■ i Daniel T. Seamount, Jr. Chair DATED thi day of August, 2009 i.-C b Encl. 0-tit) 90 • z • Marathon Oil Company Alaska Asset Team 1 M\ Marathon P.O. Box 1949 Kenai, AK 99611 M ARATHON Oil Company Telephone 907/283 -1371 Fax 907/283 -1350 July 29, 2009 UL 3 tj f1fi Mr. Winton Aubert �1 ;+ tlii & GF1:; Ci)115. C;»gmunis. Alaska Oil & Gas Conservation Commission ni,r 333 W 7 Ave Anchorage, Alaska 99501 Reference: 10 -403 Application for Sundry Approvals Field: Kenai Gas Field Well: Kenai Beluga Unit 42 -6x Dear Mr. Aubert: Marathon proposes to run a 3/8" capillary string in KBU 42 -6x to assist with water loading mitigation once the well has been completed. It is expected that KBU 42 -6x will need assistance with water mitigation since near -by wells completed into the same zones have experienced water loading issues. The target setting depth for this capillary string is 9,255' MD. Please call me at (907) 283 -1371 if you have any questions or need additional information. Sincerely, '6 Kevin J. Skiba Regulatory Compliance Technician Enclosures: 10 -403 Application for Sundry Approvals cc: AOGCC Current Well Schematic Houston Well File Detailed Operations Program Kenai Well File KJS / "' 1 S TATE OF ALASKA �� �11 ^G ""'� • V() AL • • IL AND GAS CONSERVATION COMMIS N ii2 ( , APPLICATION FOR SUNDRY APPROVALS JUL 3 0 20 03 1311712nq 20 AAC 25.280 1. Type of Requ =•t: Abandon Suspend ❑ Operational shutdown Perforate ❑ Isla ;k atGas Cons. t on Alter casing ❑ Repair well ❑ Plug Perforations ❑ Stimulate ❑ Time Extension Lfaiiikit Capillary Change approved program ❑ Pull Tubing ❑ Perforate New Pool ❑ Re -enter Suspended Well El String 2. Operator Name: an Marathon Oil Company 4. Current Well Class: 5. Permit to Drill Number: p y Development El , Exploratory ❑ 209-040/ 3. Address: PO Box 1949 Stratigraphic ❑ Service ❑ 6. API Number: Kenai Alaska, 99611 -1949 50- 133 - 20586 -00 -00 7. If perforating, closest approach in pool(s) opened by this operation to nearest 8. Well Name and Number: property line where ownership or landownership changes: Spacing Exception Required? Yes ❑ No D Kenai Beluga Unit 42 -6X , 9. Property Designation: 10. KB Elevation (ft): 11. Field /Pool(s): j A - 028142 , 89' (23' AGL) Kenai Gas Field / Beluga & Tyonek Pools 12. PRESENT WELL CONDITION SUMMARY Total Depth MD (ft): Total Depth TVD (ft): Effective Depth MD (ft): Effective Depth TVD (ft): Plugs (measured): Junk (measured): 10,278' 8,557' 10,207' 8,486' NA NA Casing Length Size MD / TVD Burst Collapse Structural Conductor 111' 20" 134' 134' Surface 2,485' 13 -5/8" 2,508' 2,166' 3,450 psi 1,950 psi Intermediate 7,068' 9 -5/8" 7,091 5,370' 5,750 psi 3,090 psi Production 10,221' 3 -1/2" 10,244' 8,523' 10,160 psi 10,540 psi Liner Perforation Depth MD (ft): Perforation Depth TVD (ft): Tubing Size: Tubing Grade: Tubing MD (ft): NA NA Excape 3 - 1/2" L - 80 10,244' 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 Ell ' Service ❑ 15. Estimated Date for 16. Well Status after proposed work: Commencing Operations: August 14 , 2009 ° Oil ❑ Gas 0 • Plugged ❑ Abandoned ❑ 17. Verbal Approval: Date: WAG ❑ GINJ ❑ WINJ ❑ WDSPL ❑ Commission Representative: 18. I hereby certify that the foregoing is true and correct to the best of my knowledge. Contact Kevin Skiba (907) 283 -1371 Printed Name Kevin J. Skiba Title Regulatory Compliance Technician Signature _ i jj hone (907) 283 -1371 Date July 29, 2009 -/?...,.1,,dz COMMISSION USE ONLY Conditions of approval: Notify Commission so that a representative may witness Sundry Number: AV-434,3 Plug Integrity ❑ BOP Test ❑ Mechanical Integrity Test ❑ Location Clearance ❑ Other: Subsequent Form Required: I O — 4o 4.. ;Or APPROVED BY Approved by: COMMISSIONER THE COMMISSION Date: I/3 j 7 Form 10 -403 Revised 06/2006 o R G I N A L R»: / ,;S BR, AJ& 0 5 2009 Submit in Duplicate • 2008 Capillary String Installation AAT KBU 42 -6X Dyna -Coil Capillary Installation Pad 41 -7 WBS: WO.09.20858.CAP.001 Objective Install capillary string (3/8" 2205 0.049" WT) into well for delivering foamer to alleviate liquid loading. Procedure Capstring Set Depth: 9255' (7534' TVD) Coil length: 10000' Max OD of BHA: 2.250" centralizer Min OD of 3.5" Excape: 2.992" Depth/OD of last tag: n/a (new well) Installation Procedure: Disconnect power to wellhouse (call electrician) MI crane, manlift. Remove wellhouse. On site: 10,000' spool, long -style Well Head Adapter (WHA), Sundry, Work Permit, Well Control Standards Sheet. Install Capillary String (JSA): 1. MIRU BJ Dyna -Coil unit. Place liner around wellhead and truck. 2. Shut swab valve. Pull tree -cap flange. Replace OTIS blanking plug with WHA (note o- ring). MU flange. 3. Pressure test 1.5x SIWHP. Watch for leaking swab valve. 4. P/U Dyna -Coil injector with crane. Run capstring through injector and pack -off. Iinsert support pin. 5. Set Fluid Control Valve pressure = (setting TVD 7,534')(0.433 psi/ft H20)(1.036 foamer SG) = 3,O 'psi (the CICM surface pump pressure will then equal BHP). 6. Run the 3/8" string through pack -off. Insert injector head pin to support the pack -off. 7. Attach BHA. Perform "pull test" on BHA to ensure it is held tight. 8. Pull pin, lower and thread pack -off assembly into 2 -7/8" female connection (metal -to -metal seal; a wrench or chain tong may be needed to prevent the adapter from turning). 9. Lower injector head carefully on the pack -off (line up slot with the 1 /4"x4" nipple & valve). 10. Wrap wellhead with absorbents to catch drips. 11. Cap surface capstring end (if line is not preloaded, configure to pump foamer downhole during job). 12. Ensure rattiguns are set to running position. 13. Pressure hydraulic rams (top seal) pack -off to 3000 psi. 14. Open swab valve. Watch for•leaks at pack -off Adjust Rattiguns and pressure on pack -off as needed. 15. RIB to setting depth of 9,255'. / 16. Set slips. Set Rattiguns. Release pressure on upper hydraulic seal. Watch for leaks. Lift injector head. 17. Place 1.5 times SIWHP on hydraulic pack -off. 18. Pull tubing excess through injector. 19. Cap tubing with a Swagelok cap and valve, pressure gauge, and filter. Connect to line from CICM. 20. Lockout Swab, Upper Master, and Lower Master as per Capstring Lockout Procedure. 21. Hookup injection line to CICM. NOTE: Start foamer at 1 gpd. 22. RDMO. Cleanup site. Sign -out. 23. 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 KBU 42 -6x Permit #: 209-040 API PI # #: 50- 1-133 20586 -00 -00 Pad 41 -7 Prop. Des: A- 028142 537' FNL, 1,036' FEL, MARATHON , KB elevation: 89' (23' AGL) Sec. 7, T4N, R11 W, S.M. Latitude: 60° 26' 38.035" N Longitude: 151° 04' 37.405' W Conductor [LL 2 0" X -95 129.4 ppf X: T op Bottom Y:�, MD 0, 134' Spud: 4/16/2009 15:00 hrs TVD o 134 TD: 5/5/2009 17:00 hrs Rig Released: 5/13/2009 24:00 hrs Surface Casing il 13 - 3/8" K - 55 68 ppf PA #: Top Bottom MD 0' 2,508' TVD 0' 2,166' 16" Hole Cmt w/ 606 sks (255 bbls) of 12.0 ppg, Type 1 cmt. 95 sks (40 bbls) cmt Top of 3 - 1/2" Tubing Cement _. r 1 . returned to surface with 100% returns. @ ? ? ? M D ' 1 ,�j Intermediate Casing l 9-5/8" L -80 40 ppf Butt Top Bottom MD 0' 7,091' „ }o TVD 0' 5,370' 12 -1/4" Hole Cmt wl 366 sks (219 bbls) of 10.5 ppg Class G. Bumped plug, floats held. No returns to suface during entire cementing process. to Production Tubing 3 -1/2" L -80 9.3 ppf Mod EUE Chemical Injection Mandrels 1 Top Bottom MD 0' 10,244' @ 7,521' MD, opens @ ? ?? psi �� TVD 0' 8,523' @ 8,672' MD, opens @ ? ?? psi j 8 -1/2" Hole Cmt w/ 1,431 sks (285 bbls) 15.8 ppg, Class G, 100% returns during entire job. } Excape System Flappers MD: Excape System Details Module 10 = 7,575' , - 10 Excape modules placed along Module 9 = 7,870' with 2 chemical injection mandrels ill Module 8 = 7,926' . - :k_.:, contol line fires modules 6 - 10 Module 7 = 8,382' 1�f_ - '; & chemical injection mandrel - Module 6 = 8,585' control line fires Modules 1 - 5 Module 5 = 8,725' 1 1 `�h & chemical injection mandrel C ►o P e rf s MD (RKB): Module 4 = 8,895' Module 3 = 9,015' 1 y+ rti j Module 10 = 7,551' - 7,561' Module 2 = 9,056' ' 1 Module 9 = 7,845' - 7,855' Module 1 = NA Module 8 = 7,901' - 7,911' Module 7 = 8,358' - 8,368' 12 Module 6 = 8,559' - 8,569' I .. 1) Module 5 = 8,701' - 8,711' lift Module 4 = 8,871' - 8,881' Module 3 = 8,991' - 9,001' Module 2 = 9,032' - 9,042' TD PBTD Module 1 = 9,251' - 9,261' 10,278' MD 10,207' MD 8,557' TVD 8,486' TVD Well Name & Number: Kenai Beluga Unit 42 - 6x Lease: Kenai Gas Field Municipality: Kenai Peninsula Borough State: Alaska I Country:) USA Perforations (MD): (TVD): Angle /Perfs: Angle @ KOP and Depth: Dated Completed: Completion Fluid: Revised by: Kevin Skiba Last Revison Date: 5/13/2009 1 • t / SARAH PALIN, GOVERNOR ALASKA OIL AND GAS 333 W. 7th AVENUE, SUITE 100 CONSERVATION COM11iISSION ANCHORAGE, ALASKA 99501 -3539 PHONE (907) 279 -1433 FAX (907) 276 -7542 Craig L. Rang Senior Completions Engineer Marathon Oil Company P.O. Box 1949 Kenai, Alaska 99611-1949 Re: Kenai Gas Field, Beluga 86 Tyonek Pools, Kenai Beluga Unit 42 -6x Sundry Number: 309 -174 Dear Rang : Enclosed is the approved Application for Sundry Approval relating to the above referenced well. Please note the conditions of approval set out in the enclosed form. When providing notice for a representative of the Commission to witness any required test, contact the Commission's petroleum field inspector at (907) 659 -3607 (pager). • As provided in AS 31.05.080, within 20 days after written notice of this decision, or such further time as the Commission grants for good cause shown, a person affected by it may file with the Commission an application for rehearing. A request for rehearing is considered timely if it is received by 4:30 PM on the 23rd day following the date of this letter, or the next working day if the 23rd day falls on a holiday or weekend. A person may not appeal a Commission decision to Superior Court unless rehearing has been requested. Sincerely, 4 1 / 1 ' 4 Cathy Foerster Commissioner DATED this Ft day of May, 2009 Encl. 6 STATE OF ALASKA � S- /��9 E \ECEI Y 0, ' ALA. OIL AND GAS CONSERVATION COMMSION L'JC7 - V � O APPLICATION F O R SUNDRY APPROVALS 5 fri/ MAY 1 8 ZO[� � , 20 AAC 25.280 1. Type of Request: Abandon Suspend ❑ Operational shutdown Perforate ❑ 'Waiver Oth ❑ A Alter casing ❑ Repair well ❑ Plug Perforations ❑ Stimulate z- Time Extension Ch0rage Change approved program ❑ Pull Tubing ❑ Perforate New Pool 131 Re -enter Suspended Well ❑ 2. Operator Name: an Marathon Oil Company 4. Current Well Class: 5. Permit to Drill Number: p y Development ra , Exploratory Ell 209 -040 3. Address: PO Box 1949 Stratigraphic ❑ Service ❑ 6. API Number: Kenai Alaska, 99611 -1949 50- 133 - 20586 -00 -00 7. If perforating, closest approach in pool(s) opened by this operation to nearest 8. Well Name and Number: property line where ownership or landownership changes: - Spacing Exception Required? Yes ❑ No 0 Kenai Beluga Unit 42-6x 9. Property Designation: 10. KB Elevation (ft): 11. Field / Pool(s): A - 028142 - 89', (23' AGL) Kenai Gas Field / Beluga & Tyonek Pools 12. PRESENT WELL CONDITION SUMMARY Total Depth MD (ft): Total Depth TVD (ft): Effective Depth MD (ft): Effective Depth TVD (ft): Plugs (measured): Junk (measured): 10,278' - 8,557' - 10,207' 8,486' NA NA Casing Length Size MD TVD Burst Collapse Structural Conductor 111' 20" 134' 134' Surface 2,485' 13 -5/8" 2,508' 2,166' 3,450 psi 1,950 psi Intermediate 7,068' 9 -5/8" 7,091 5,370' 5,750 psi 3,090 psi Production 10,221' 3 -1/2" 10,244' 8,523' 10,160 psi 10,540 psi Liner Perforation Depth MD (ft): Perforation Depth TVD (ft): Tubing Size: Tubing Grade: Tubing MD (ft): NA NA Excape 3 - 1/2" L - 80 10,244' Packers and SSSV Type: Packers and SSSV MD (ft): NA NA 13. Attachments: Description Summary of Proposal ❑ 14. Well Class after proposed work: Detailed Operations Program 0 BOP Sketch ❑ Exploratory ❑ Development Q - Service ❑ 15. Estimated Date for 16. Well Status after proposed work: July 12, 2009 Commencing Operations: Oil ❑ Gas Ell - Plugged ❑ Abandoned ❑ 17. Verbal Approval: Date: WAG ❑ GINJ ❑ WINJ ❑ WDSPL ❑ Commission Representative: 18. I hereby certify that the foregoing is true and correct to the best of my knowledge. Contact Kevin Skiba (907) 283 -1371 Printed Name Craig L. Rang Title Senior Completions Engineer Signature ...// P F hone (907) 283 - 1372 Date May 15, 2009 / f f COMMISSION USE ONLY t Conditions of approval: Notify Commission so that a representative may witness Sundry Number: 30G/^ 1 7 e. f Plug Integrity ❑ BOP Test El Mechanical Integrity Test ❑ Location Clearance ❑ Other: Per 4 C 2 5. 'l 3S Subsequent Form Required: (0 -- C{ 611 ' R_. I4ii 2 0 2005 APPROVED BY Approved by: COMMISSIONER THE COMMISSION Date: S .-1 ! -62 ORIGINAL Form 10 -403 Revised 6/2006 Submit in Duplicate • • KBU 42 -6X Fracture Stimulation MARATNOM Description Summary of Proposal Kenai Beluga Unit 42 -6X is a new well drilled to 10278' MD, 9 5/8" intermediate string set at 7091' MD and cased as a 3.5" Monobore Excape completion string back to the surface. The cement pump down plug did not bump the landing collar so pressure' was held on the casing overnight until the cement set up. Twelve hours after the cement job was completed, a pressure test was run on the casing and 2500# of pressure held on it for 30 minutes/ The test was successful. The fracture stimulations consists of ten (10) Excape perforating modules selectively positioned across the gas bearing sands. Each module will complete a different production interval with ten feet of perforations followed by individual fracture stimulations in each interval. Typically, Module 1 perforating will be actuated the day before fracture stimulations are scheduled. The Module 1 interval will then be stimulated the following morning followed by perforating Module 2 with its stimulation and continuing this sequence until all Modules have been perforated / stimulated. All Module perforations /fracture stimulation operations are typically concluded in one day, unless screenouts occur. After all treatments have been performed, coiled tubing will be utilized to ,Pleanout the wellbore of module debris and frac proppant to PBTD. The well will then be jetted in with nitrogen via the coil tubing. Once the well is flowing on its own, coil tubing will be pulled from the well and rigged down. Well testing operations will then commence and continue until an acceptable gas rate is acheived and produced frac water load volumes are at manageable levels. Once well is adequately cleaned up, well testing equipment will be rigged down and the well will be turned over to production. Request for Approval to Vent Gas Due to the nature of such fracture stimulations, large amounts of water are injected, along with the fracture proppant that will have to be unloaded and cleaned up during the post fracture flowback/testing period. This unloading, or cleaning up period, requires the well to be vented to atmosphere until enough gas volume is achieved to flow the well into the high pressure sales gas system. The duration of this venting operation can last as little as a few hours up to a number of days based upon reservoir pressures, permeability, well performance, tubing size, and fracture placement success. For Marathon's gas well operations in the Kenai Gas Field, typical vent times are less than 48 hours However, due to t ncertainty of exactly how long KBU 42 -6X will be required to vent to atmosphere, this request is for a maximum vent period of 4 ours with a maximum vent volume during that period of 6 MMCF of methane gas. This volume is minimized due to the utili ton of the Excape completion process which enables all intervals of interest to be fracture treated on the same day and unloaded together at one time, instead of multiple frac days with multiple flowback periods each requiring the venting of gas. If you have any questions regarding this gas venting request, please contact me at your earliest convenience. Craig L. Rang May 14, 2009 1 . .. • KBU 42 -6x • Permit #: 209-040 API PI #: 50-133-20586-00-00 Pad 41 -7 Prop. Des: A- 028142 537' FNL, 1,036' FEL, MARATHON KB elevation: 89' (23' AGL) Latitude: 60° 26' 38.035" N Sec. 7, T4N, R11 W, S.M. Longitude: 151° 04' 37.405' W Conductor 20" X -95 129.4 ppf X: i r Top Bottom V: jj." MD 0' 134' Spud: 4/16/2009 15:00 hrs TVD 0' 134' TD: 5/5/2009 17:00 hrs ..Y kk Rig Released: 5/13/2009 24:00 hrs t ' Surface Casing 13 -3/8" K -55 68 ppf PA #: ( Top Bottom MD 0' 2,508' TVD 0' 2,166' 16" Hole Cmt w/ 606 sks (255 bbls) of 12.0 ppg, Type 1 cmt. 95 sks (40 bbls) cmt Top of 3 -1/2" Tubing Cement XI returned to surface with 100% returns. @ ? ? ? ?' M D 1 ' Intermediate Casing I 9 -5/8" L -80 40 ppf Butt Top Bottom y / MD 0' 7,091' 1 TVD 0' 5,370' , 12 -1/4" Hole Cmt w/ 366 sks (219 bbls) of to ; 10.5 ppg Class G. Bumped plug, floats held. No returns to suface during entire cementing ....0 process. Production Tubing i, 3 -1/2" L -80 9.3 ppf Mod EUE I Top Bottom Chemical Injection Mandrels l MD 0' 10,244' @ 7,521' MD, opens @ ? ?? psi - , I 111, TVD 0' 8,523' @ 8,672' MD opens @ ? ?? psi I " j 8-1/2" Hole Cmt wl 1,431 sks (285 bbls) 41 tf ' 15.8 ppg, Class G, 100% returns during entire job. ji Excape System Flappers MD: Module 10 = 7,575' All t i, Excape System Details Module 9 = 7,870' Sr - 10 Excape modules placed along Module 8 = 7,926' � with 2 chemical injection mandrels 4 Module 7 = 8,382' `; �j " - contol line fires modules 6 - 10 Module 6 = 8,585' & chemical injection mandrel Module 5 = 8,725' 4 j w . - control line fires Modules 1 - 5 Module 4 = 8,895' y;* 1 T & chemical injection mandrel Module 3 = 9,015' .y Perfs MD (RKB): Module 2 = 9,056' Module 10 = 7,551' - 7,561' Module 1 = NA 14 Module 9 = 7,845' - 7,855' 7. t Module 8 = 7,901' - 7,911' illi 1# Module 7 = 8,358' - 8,368' , Module 6 = 8,559' - 8,569' AMIL lj1! Module 5 = 8,701' - 8,711' Module 4 = 8,871' - 8,881' Module 3 = 8,991' - 9,001' TD PBTD Module 2 = 9,032' - 9,042' 10,278' MD 10,207' MD Module 1 = 9,251' - 9,261' 8,557' TVD 8,486' TVD Well Name & Number: Kenai Beluga Unit 42 -6x Lease: Kenai Gas Field Municipality: Kenai Peninsula Borough State: Alaska Country:) USA Perforations (MD): (TVD): Angle / Perfs: Angle @ KOP and Depth: Dated Completed: Completion Fluid: Revised by: Kevin Skiba Last Revison Date: 5/13/2009 1 Marathon Oil Company M Marathon Alaska Asset Team P.O. Box 1949 MARATHON OBI Company Kenai, AK 99611 Telephone 907/283 -1371 Fax 907/283 -1350 RECEIVED May 15, 2009 MAY 1 8 2009 Mr. Tom Maunder - aia6<a El;! Gas mans. Commissia Alaska Oil & Gas Conservation Commission Anchorage W 7 Ave ge Anchorage, Alaska 99501 Reference: 10 -403 Application for Sundry Approvals Field: Kenai Gas Field Well: Kenai Beluga Unit 42 -6x Dear Mr. Maunder: Enclosed please find the 10 -403 Application for Sundry Approvals for KB'J 42 -6x well. KBU 42 -6x is a newly drilled well arranged with an Excape configuration. The ten Excape modules target reserves in the Upper Tyonek / Lower Beluga formations. Marathon requests approval to perforate and fracture stimulate the Excape modules. - Work is tentatively scheduled to commence on July 12, 2009. Please contact me at (907) 283 -1371 if you have any questions or need additional information. Sincerely, c -/. .1/17 Oq \ et1/ U Kevin J. Skiba Engineering Technician Enclosures: 10 -403 Application for Sundry Approvals cc: AOGCC Work Procedure Houston Well File Well Schematic Kenai Well File KJS CLR • • Q SARAH PALIN, GOVERNOR ALASKA OIL AND GAS { 333 W. 7th AVENUE, SUITE 100 CONSERVATION COMMISSION / ANCHORAGE, 9072S - ALASKA 9501 -3539 FAX (907) 276 -7542 Willard Tank Advanced Senior Drilling Engineer Marathon Oil Company 3201 C. Street Ste 800 Anchorage AK 99503 Re: Kenai Gas Field, Beluga /Upper Tyonek Pool, KBU 42 -6X Sundry Number: 309 -164 Dear Mr. Tank: 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 May, 2009 Encl. -� - / 5' L STATE OF ALASKA ,�� f � A OIL AND GAS CONSERVATION COMMISSION�''VJG � Z� ooq MAY 0 5 ZOO RECEIVED APPLICATION FOR SUNDRY APPROVALS 20 AAC 25.280 Alaska Oil & Gas Cons. Commission 1. Type of Request: Abandon❑ Suspend 0 Operational shutdown❑ Perforate Waiver❑ APO" a Jther❑ Alter casing0 Repair well ❑ Plug Perforations ❑ Stimulate 0 Time Extension ❑ z Change approved prograrrI - 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 si . Exploratory ❑ 209 -040 3. Address: Stratigraphic 0 Service 0 6. API Number: 3201 C. Street, Suite 800, Anchorage, AK 99503 50- 133 - 20586 -0000 7. If perforating, closest approach in pool(s) opened by this operation to nearest 8. Well Name and Number: property line where ownership or landownership changes: • Spacing Exception Required? Yes ❑ No lig KBU 42 -6X 9. Property Designation: 10. KB Elevation (ft): 11. Field / Pool(s): A- 028142 87 feet • Kenai Gas Field - Beluga / Upper Tyonek Pool 12. PRESENT WELL CONDITION SUMMARY Total Depth MD (ft): Total Depth TVD (ft): Effective Depth MD (ft): Effective Depth TVD (ft): Plugs (measured): Junk (measured): 7,105 5,384 7,105 5,384 N/A N/A Casing Length Size MD TVD Burst Collapse Structural Conductor 111' 20" 132' 132' N/A N/A Surface 2,480' 13 3/8" 2,501' 2,161' 3,450 psi 1,950 psi Intermediate 7,070' 9 5/8" 7,091' 5,370' 5,750 psi 3,090 psi Production Liner Perforation Depth MD (ft): Perforation Depth TVD (ft): Tubing Size: Tubing Grade: Tubing MD (ft): N/A N/A N/A N/A N/A Packers and SSSV Type: N/A Packers and SSSV MD (ft): N/A 13. Attachments: Description Summary of Proposal 151 14. Well Class after proposed work: Detailed Operations Program ❑ BOP Sketch ❑ Exploratory ❑ Development IN . Service ❑ 15. Estimated Date for May 1, 2009 16. Well Status after proposed work: Commencing Operations: Oil ❑ Gas tg - Plugged ❑ Abandoned ❑ 17. Verbal Approval: Date: May 1, 2009 WAG ❑ GINJ ❑ WINJ ❑ WDSPL ❑ Commission Representative: Jim Regg 18. I hereby certify that the foregoing is true and correct to the best of my knowledge. Contact Printed Name Willard J. Tank Title Advanced Senior Drilling Engineer Signature 0/ Phone 713- 296 -3273 Date May 4, 2009 COMMISSION USE ONLY /,, Conditions of approval: Notify Commission so that a representative may witness Sundry Number: ��.' - -' /? °( Plug Integrity ❑ BOP Test ❑ Mechanical Integrity Test ❑ Location Clearance ❑ Other: Subsequent Form Required: I — L i -0 7 Lt,/n v`- MI ( ( 1. ■ t'y • APPROVED BY � / Approved by: COMMISSIONER THE COMMISSION Date: r / Form 10 -403 Revised 06/2006 I ' Submit in Duplicate - ',t 't ✓ • • Description Summary of Proposal Marathon proposes a change to the approved permit to drill for KBU 42 -6X, concerning top of cement for the intermediate casing string. The drilling program that accompanied the APD specified a top of cement for the 9 5/8" intermediate casing to be 4,400' MD. Just prior to cementing operations, returns were lost. Attempts to re- establish returns were unsuccessful and the cementing was performed with no returns. A bond log indicates that a top of cement is currently at approximately 5,100' MD. The top of the Sterling A8 is at approximately 4,966' MD. All sands from top of Sterling A8 to the top of cement are highly depleted and mostly water filled at this point in time. Marathon's main Sterling production comes from the Pool 6 sand which is at an approximate depth of 6,150' MD in this well. The Pool 6 is also used for gas storage. Marathon is requesting that the current top of cement be left at 5,100' MD. It is believed that the potential problems with perforating the 9 5/8" casing above 5,100' MD and attempting to circulate cement up outweigh the advantages. There are no future plans for gas storage above the current top of cement. • • Worldwide Drilling North America AA Marathon P.O. Box 3128 II Ira MARATWA Oil Company Houston, TX 77253 -3128 Company Telephone 713 -629 -6600 Fax 713-499-6737 May 4, 2009 Daniel T. Seamount, Jr. Commissioner State of Alaska Alaska Oil & Gas Conservation Commission 333 West 7 Ave, Suite 100 Anchorage, AK 99501 Reference: Field: Kenai Gas Field Well: KBU 42 -6X Permit No.: 209 -040 Dear Mr. Seamount Enclosed please find the APPLICATION FOR SUNDRY APPROVALS and an attachment that describes Marathon's proposed change in the intermediate casing top of cement. This follows the verbal approval given to Marathon on May 1, by Mr. Jim Regg. If you require further information, I can be reached at 713 - 296 -3273 or by e-mail at wjtank @marathonoil.com. Sincerely, Gam? Willard J. Tank Advanced Senior Drilling Engineer Enclosures • • AOGCC Memorandum Date: 5/1/2009 11ZA599 To: KBU 42 -6X; PTD 209-040 Jim Regg, Petroleum Engineer Subject: Intermediate Casing Cement Marathon verbally reported that they encountered lost circulation while cementing the 9 -5/8 -inch intermediate casing in Kenai Beluga Unit 42 -6X. [The verbal notice provided 9:00 am; follow - up email was provided by Mr. Peter Berga (907 -565 -3032) received at 1012am, 5/1/2009]. The well is currently being drilled by Glacier Drilling 1 rig. Marathon calculated (from pump pressures) the cement top at about 4900 feet measured depth (MD), short of the planned top of cement that was to place at least 500 feet of cement above the Sterling A8 (a highly porous depleted sand with a history of lost returns). Mr. Berga stated in response to the failure to get cement to expected depth that Marathon is attempting to verify the top of cement with a cement bond log; results would be available later in the day. The Sterling A8 sand is believed the culprit, penetrated at 4966 feet MD based on the mud log. It did present some lost returns issues while drilling (remediated with LCM pills). 20 AAC 25.030(d)(5) requires intermediate and production casing to be set and cemented with sufficient cement to fill the annular space from the casing shoe to a minimum of 500 feet above all significant hydrocarbon zones and abmornally geo- pressured strata. Insufficient cement requires remedial action according to the regulation. Marathon requested a variance of the requirement for 500 feet cement above all significant hydrocarbon zones, based on 2 factors: 1) Sterling A8 is a watered out gas zone that is pressure depleted; Marathon believes this zone should not be considered a significant hydrocarbon zone; 2) Remedial action would require punching holes in intermediate casing, compromising the casing with a potential leak path. Mr. Will Tank (Marathon; 713 - 203 -8398) called with an update at 330 pm 5/1/2009. He provided an electronic copy of the bond log. The following was discussed: Top of Cement. The cement bond log clearly shows top of cement at approximately 5100 feet MD (3681 feet TVD), and generally good cement below to the shoe. Intermediate Casing Cement Job. Marathon pumped 219 bbls cement (10.5ppg) were pumped at 4 bpm. A 40 bbl LCM pill was pumped ahead of spacer to help prevent lost returns. Cement volume matches the planned volume in the approved PTD. • • KBU 42 -6X; PTD 209 -040 Intermediate Casing Cement Sterling Pool 6. Gas storage within the Kenai Unit occurs in the Sterling Pool 6. This was penetrated at 6150 feet MD (4460 feet TVD). The cement bond log confirms isolation of the Sterling Pool 6 with intermediate casing and approximately 800 feet TVD cement above the zone. Commission Chair Dan Seamount was contacted on 5/1/2009 at approximately 6:00 pm to discuss the circumstances in KBU 42 -6X. I provided him the information gathered and he concurred with my recommendation to allow Marathon to continue drilling without performing remedial cementing. Mr. Will Tank (Marathon) was contacted and given verbal approval to continue on with well operations; approval was also provided to Messrs. Tank and Berga. Attachments - Email notification from Mr. Peter Berga - Cement Bond Log on the 9 -5/8 -inch casing for KBU 42 -6X - AOGCC email approval allowing continuation of drilling w/o remedial cementing 2 KBU 42 -6x intermediate casing gent Page 1 of 1 Regg, James B (DOA) From: Regg, James B (DOA) Sent: Friday, May 01, 2009 6:31 PM (T To: 'Berga, Pete'; Tank, Will; Anderson, Gene Cc: Maunder, Thomas E (DOA); tzelenka @blm.gov Subject: RE: KBU 42 -6x intermediate casing cement I appreciate the effort and timely responses by Will Tank regarding my questions. Information provided was very helpful. The bond log clearly defines a cement top that appears coincident to the highly porous, depleted Sterling A8 sand. The bond log also clearly shows approximately 800 feet of good cement between the Sterling Pool 6 gas storage zone and the cement top. I discussed this matter with Commission Chair Dan Seamount; we agree that you can proceed without taking remedial action as required by 20 AAC 25.030(d)(5). You will need to provide the Commission with a 10 -403 to address this variance. Jim Regg AOGCC 333 W.7th Avenue, Suite 100 Anchorage, AK 99501 907 - 793 -1236 From: Berga, Pete [ mailto:pkberga @marathonoil.com] Sent: Friday, May 01, 2009 10:12 AM To: Maunder, Thomas E (DOA); Regg, James B (DOA); tzelenka @blm.gov Cc: Tank, Will; Anderson, Gene Subject: KBU 42 -6x intermediate casing cement Jim Regg and Tom Zelenka Follow up to our phone conversations. The well has been drilled to 7105' and with 9 5/8" casing at 7091' md. Top of hydrocarbon bearing sand(depleted) is 4900' md. Lost returns during cement job. Pump pressures indicate we may have cement around 4900' md. Running bond log now to find top of cement. Hopefully we will have this info around 1 pm today. Myself, Will Tank or Gene Anderson will contact you with the results and remedial plan if we need one. Any verbal approves will be followed up with sundrys on Monday. 5/6/2009 CBL KBU 42 -6X • • Page 1 of 1 Regg, James B (DOA) From: Tank, WiII [wjtank @marathonoil.com] Sent: Friday, May 01, 2009 5:22 PM To: Regg, James B (DOA) - Z6 , 7 -CAO Subject: Fw: CBL KBU 42 -6X� / Attachments: KBU 42- 6x.ZIP f! t ` j Jim, Here is the PDF. Please let me know if you need anything else. Thanks, Will Tank From: Lawson, Rowland C. To: Tank, Will; Berga, Pete; Anderson, Brooke E.; Anderson, Gene Sent: Fri May 01 17:08:38 2009 Subject: CBL KBU 42 -6X Attached is the CBL log on the 9 5/8" CSG for KBU 42 -6X. «KBU 42- 6x.ZIP» 5/1/2009 l Database File: x.db 201-040 Dataset Pathname: g/passl6 Presentation Format: scb_dr Dataset Creation: Fri May 01 12:17:37 2009 by Log Std Casedhole 07122 5//12.00/ Charted by: Depth in Feet scaled 1:240 600 Travel Time (usec) 200 0 Amplitude (mV) 100200 VDL 1200 9 Collar Locator -1 0 Amplified Amplitude X5 (mV) 20 0 Gamma Ray (GAPI) 50 0 Line Tension (lb) 3000 1 MD v NNN1/ • .gi 4400 ■■NN \■■■■ Ala i p NNNNEMNNNN N'� NNNNM7 z. 1IMIIM : 1 ®' ■ ■•-J ■■■ ■� 1 'ii ; p - NN �� it I :t NNaiN7 NN__ a NNNN".� 4 NNNt— ■NNNN • I:1' ; t .. r.NN NNNN�7NNNNN i ; r - Co L oca t or ► u .. I G ,i 1 1 = INNNN■ mil II 11 1 Tension t " 1 NNNNNNNNNN g.. 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L.i 4 � � k .i7ii! t1i -- -. .7 -.!•- 7-- rSYMM� P - = •z Gamma Ray - - - -MI —= �7 --1/1 li/� - -1L■� ogw ■ ■d t. — IIM�i■ra ■ w■ , .....m.......... • 7000 on mia- -IalMM∎ �.Timm- -ars ■- ■ ■ ■■ . r■--•J =I- -ilawmoms--- 1. - L7_i_ —n • mo—I --M7∎L 1 i�i—M • a� —iii_ i , rid ' l4 IC I r� - -i • �.� t��fi� a ■■■■ •1 w■■■■ mimmusmo _- ■- -- 600 Travel Time (usec) 200 0 Amplitude (mV) 100 200 VDL 1200 9 Collar Locator -1 0 Amplified Amplitude X5 (mV) 20 O Gamma Ray (GAPI) 50 O Line Tension (lb) 3000 KBU 42 -6x intermediate casingenent Page 1 of 1 Regg, James B (DOA) From: Berga, Pete [pkberga©marathonoil.com] 5I' Sent: Friday, May 01, 2009 10:12 AM � q To: Maunder, Thomas E (DOA); Regg, James B (DOA); tzelenka @blm.gov Cc: Tank, Will; Anderson, Gene Subject: KBU 42 -6x intermediate casing cement Jim Regg and Tom Zelenka Follow up to our phone conversations. The well has been drilled to 7105' and with 9 5/8" casing at 7091' md. Top of hydrocarbon bearing sand(depleted) is 4900' md. Lost returns during cement job. Pump pressures indicate we may have cement around 4900' md. Running bond log now to find top of cement. Hopefully we will have this info around 1 pm today. Myself, Will Tank or Gene Anderson will contact you with the results and remedial plan if we need one. Any verbal approves will be followed up with sundrys on Monday. 5/1/2009 (1,6? r' rfri [E ' r \A\ ......_, a if �< .._.. C .+ � - 4 ��� k / SARAHPALIN ,GOVERNOR ALASKA OIL AND GAS 333 W 7th AVENUE, SUITE 100 CONSERVATION COMMISSION ANCHORAGE, ALASKA 99501 -3539 PHONE (907) 279 -1433 FAX (907) 276 -7542 Willard Tank Advance Senior Drilling Engineer Marathon Oil Company 3201 C. Street Ste 800 Anchorage AK 99503 Re: Kenai Gas Field, Beluga /Upper Tyonek, KBU 42 -6X Marathon Oil Company Permit No: 209 -040 Surface Location: 537' FNL, 1036' FEL, SEC. 7, T4N, R11W, S.M. Bottomhole Location: 3225' FSL, 673' FEL, SEC. 6, T4N, R1 1W, S.M. Dear Mr. Tank: Enclosed is the approved application for permit to drill the above referenced development well. This permit to drill does not exempt you from obtaining additional permits or an approval required by law from other governmental agencies and does not authorize conducting drilling operations until all other required permits and approvals have been issued. In addition, the Commission reserves the right to withdraw the permit in the event it was erroneously issued. Operations must be conducted in accordance with AS 31.05 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, re Daniel T. Seamount, Jr. Chair DATED thiZa day of March, 2009 cc: Department of Fish & Game, Habitat Section w/o encl. Department of Environmental Conservation w/o encl. • II I�fEt 9 0� STATE OF ALASKA ALASKA OIL AND GAS CONSERVATION COMMISSION VIAR 1 9 /(JO. PERMIT TO DRILL Moto a ii & Gas Comm Commission 20 AAC 25.005 Anchorage la. Type of Work: 1b. Current Well Class: Exploratory ❑ Development Oil 111 lc. Specify if well is proposed for: Drill 0 Redrill El Stratigraphic Test ❑ Service ❑ Development Gas Ei Coalbed Methane ❑ Gas Hydrates ❑ Re -entry ❑ Multiple Zone 0 Single Zone ❑ Shale Gas ❑ 2. Operator Name: 5. Bond: Blanket 0 Single Well ❑ 11. Well Name and Number: Marathon Oil Company Bond No. 5194234 KBU 42 -6X 3. Address: 6. Proposed Depth: 12. Field /Pool(s): 3201 C. Street, Suite 800, Anchorage, AK 99,703 MD: 10,295 TVD: 8,557 Kenai Gas Field 4a. Location of Well (Governmental Section): 7. Property Designation: Beluga / Upper Tyonek Pool Surface: 537' FNL, 1,036' FEL, Sec. 7, T4N, R11W, S.M. A- 028142 Top of Productive Horizon: 8. Land Use Permit: 13. Approximate Spud Date: 3,225' FSL, 673' FEL, Sec. 6, T4N, R11W, S.M. March 29, 2009 Total Depth: 9. Acres in Property: 14. Distance to Nearest 3,225' FSL, 673' FEL, Sec. 6, T4N, R11W, S.M. 2,494.04 Property: 2,035 ft 4b. Location of Well (State Base Plane Coordinates): NAD 27 10. KB Elevation 15. Distance to Nearest Well Surface: x - 274,864.686 y - 2,361,477.285 Zone - 4 (Height above GL): (21' AGL) 87 feet Within Pool: 1,480 ft KBU 41 -6 16. Deviated wells: Kickoff depth: 200 feet 17. Maximum Anticipated Pressures in psig (see 20 AAC 25.035) Maximum Hole Angle: 54.748 degrees Downhole: 5,384 Surface: 3,156 18. Casing Program: Specifications Top - Setting Depth - Bottom Cement Quantity, c.f. or sacks Hole Casing Weight Grade Coupling Length MD TVD MD TVD (including stage data) Driven 20" 133 K -55 PE 111' 0' 0' 132' 132' 16" 13 3/8" 68 K -55 BTC 2,488' 0' 0' 2,509' 2,179' 760 sacks 12 1/4" 9 5/8" 40 L -80 BTC 7,064' 0' 0' 7,085' 5,347' 365 sacks 8 1/2" 3 1/2" 9.3 L -80 EUE 10,274' 0' 0' 10,295' 8,557' 1,439 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 /Structural Surface Intermediate Production Liner Perforation Depth MD (ft): Perforation Depth TVD (ft): 20. Attachments: Filing Fee [J BOP Sketch El Drilling Program ri Time v. Depth Plot ❑ Shallow Hazard Analysis ❑ Property Plat El Diverter Sketch 0 Seabed Report ❑ Drilling Fluid Program El 20 AAC 25.050 requirements ❑ 21. Verbal Approval: Commission Representative: Date 22. I hereby certify that the foregoing is true and correct. Contact Printed Name Willard J. Tank Title Advanced Senior Drilling Engineer Signature / 147r Phone 713 - 296 -3273 Date March 18, 2009 Commission Use Only Permit to Drill API Number: Permit Appr val ISee cover letter for other Number: 9 5 ° /—f..?,:::,?li�S /6 0000 Date: • ( QS0 - 09 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: ®P , WO .5� at.? PkC,. Samples req'd: Yes❑ No ler Mud log req'd: Yes❑ No /' H measures: Yes❑ No j Directional svy req'd: Yes Non 3/7 7 APPROVED BY / DATE: , COMMISSIONER Form 10 -401 Revised 12/2005 C-�: , ,-' ' 1 r - 1 Submit in Duplicate t i . ■ ' 4 Worldwide Drilling North America AA Marathon P.O. Box 3128 MARATHON Oil Company Houston, TX 77253 -3128 Telephone 713 - 629 -6600 Fax 713 - 499 -6737 March 18, 2009 orki Daniel T. Seamount, Jr. PIED Commissioner State of Alaska Al? 7 � Alaska OH & Gas Conservation Commission'' iii/ Anchorage, st7th AK 99501 100 � � n ygoti i p Reference: Drilling Permit Application Field: Kenai Gas Field Well: KBU 42 -6X Dear Mr. Seamount Enclosed please find the PERMIT TO DRILL application, along with the associated attachments. The intent is to drill a well in the Beluga / Upper Tyonek Pool in the Kenai Gas Field. No completion is desired in other pools. For the directional data we utilize the National Geodetic Survey conversion in the program CORPSCON to calculate the State Plane Coordinates in NAD 27 for the planned and actual wellpaths from the NAD 83 data and present both in our directional survey attachment for the 10 -401. We also provide the same data electronically, so that the AOGCC has this for data input into their database. If you require further information, I can be reached at 713 - 296 -3273 or by e-mail at wjtank @marathonoil.com. Sincerely, d erVer 6 arr Willard J. Tank Advanced Senior Drilling Engineer Enclosures • KBU 42 -6X Marathon Oil Company Drilling Program Alaska Aik MARATHON MARATHON OIL COMPANY DRILLING PROGRAM Kenai Gas Field KBU 42 -6X Originator: Will Tank March 16, 2009 Date Reviewed by: Pete Berga �� 3 Date Brian Roy Date 3/18/2009 Page 1 of 19 • • KBU 42 -6X 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 6 4. Drilling Program Summary 7 4.1 General Well Data 7 4.2 Working Interest Owners Information 7 4.3 Geologic Program Summary 7 4.4 Summary of Potential Drilling Hazards 8 4.5 Formation Evaluation Summary 9 4.6 Drilling Program Summary 9 4.7 Casing Program Summary 11 4.8 Casing Design 11 4.9 Calculation of Maximum Anticipated Pressures (MAWP and MASP) 11 4.10 Casing Test Pressure Calculations 13 4.11 Blowout Prevention Equipment, Testing and General Procedures 13 4.11.1. Function Testing 14 4.11.2. Pressure Testing 14 4.12 Wellhead Equipment Summary 14 4.13 Directional Program Summary 14 4.14 Directional Surveying Summary 15 4.15 Drilling Fluid Program Summary 16 4.16 Drilling Fluid Specifications 16 4.17 Solids Control Equipment 17 4.18 Cement Program Summary 18 4.19 Bit Summary 18 4.20 Hydraulics Summary 19 4.21 Formation Integrity Test Procedure 19 3/18/2009 Page 2 of 19 KBU 42 -6X Marathon Oil Company Drilling Program Alaska Attachments Group Attachment Attached Commercial Information AFE Days /Cost vs. Depth Curves X Project Objectives and Scorecard RSO Coding Information X Requisitions Vendor List Bonus Program Drilling Contract Regulatory / HES Information Emergency Evacuation Plan X H2S Contingency Plan n/a Regulatory Permits X Regulatory Rules and Regulations Risk Analysis Miscellaneous Programs (Vendors) Bit Proposal X Cement Proposal X Directional Plan X Fluids Program X Wellhead Equipment — Description /Drawings Drill String and BHA Summary Rig Mobilization /Mooring Procedure n/a Geological Information Location Map w/ offsets X Offset Data Proposed Formation Pore Pressure, Mud Wt & Fracture Gradient X Temperature Curves Geologic Structure Maps Geologic Cross Section Bathymetry Map n/a Analysis Riser Analysis n/a Station Keeping Analysis — Mooring /DP n/a Stress Check Casing Design File X Maximum Allowable Overpull Miscellaneous Information Wellbore Diagram n/a Rig Elevations X Well Location Diagram X BOP Schematic X BOP Well Control Bridging Document Detailed Casing Specifications X Detailed Drill Pipe Specifications 3/18/2009 Page 3 of 19 • • KBU 42 -6X Marathon Oil Company Drilling Program Alaska 1. Emergency Response Information 1.1 Directions to Location Method Directions Air Latitude - 60 °27'26.850 "N Longitude - 151 °14'57.696 "W (NAD 83) From the Kenai airport, go 0.5 mile South on Willow Street. Turn East on Main Street Loop, go 0.3 miles. Continue East on Bridge Access Road 3.2 miles. Turn West on Kalifornsky Beach Road. Go West and then South, go approximately 5 miles, just Ground past the Kenai Gas Field office at Pad 34 -31. Turn East onto the next lease road South of the Kenai Gas Field office. Travel Southeast 1 mile to pad 14 -6. Go through pad and continue East 0.5 mile to pad 41 -7. 1.2 Rig Contact Numbers Contact Office Cell Glacier Drilling Rig 1 Inlet Drilling Tool Pusher 907- 283 -1314 907- 394 -1321 Marathon Supervisor 907 - 283 -1312 907 - 394 -1317 1.3 Marathon Emergency Response Contacts Individual Postion Main Phone Alternative Kenai Gas Field Emergency Number 907 - 283 -6465 CERT 24 hrs Notification 1- 800- MOC -CERT CERT Crisis Center Houston 713 - 296 -4230 713 -296 -4237 1.4 Outside Emergency Response Location Contact Phone Fire Kenai / Soldotna, Alaska 907 - 262 -4792 Ambulance Hospital Kenai / Soldotna, Alaska Central Peninsula Hospital 907 - 262 -4404 Kenai Police 907- 283 -7879 Police Kenai / Soldotna, Alaska Soldotna Police 907 - 262 -4455 State Police 907- 262 -4453 Coast Guard 800 - 478 -5555 Spill and Contamination Alaska Alaska State Spill Reporting National Response Center Oil / Toxic Chemical Spills 800 - 424 -8802 Best Practices: 1 Policy: Post emergency notification information on rig floor, company man's and tool pushers' office Comments: 3/18/2009 Page 4 of 19 • • KBU 42 -6X Marathon Oil Company Drilling Program Alaska 1.5 Marathon Contact List Contact Title Office Mobile Facsimile Home Will Tank Drilling Engineer 713 - 296 -3273 713 - 203 -8398 713- 499 -6737 832- 934 -2617 Pete Berga Drilling Superintendent 907 - 565 -3032 907 - 529 -0551 907 - 565 -3076 907 - 346 -3763 Bryan Roy Drilling Manager 713- 296 -3256 832 - 444 -4772 713 - 499 -6707 281 - 246 -4686 Brooke Anderson Geologist 713- 296 -3560 713 - 253 -9477 Clyde Scott Reservoir Engineer 713- 296 -2336 Craig Rang Completion Engineer 907 - 283 -1372 907 - 394 -1824 Ken Walsh Production Engineer 907 - 283 -1311 907 - 394 -3060 907 - 283 -3050 Rowland Lawson Drilling Supervisor 907 - 283 -1312 907 - 394 -0953 907- 283 -1313 John Nicholson Drilling Supervisor 907 - 283 -1312 907 - 394 -2641 907 - 283 -1313 Dan Byrd Drilling Supervisor 907 - 283 -1312 907 - 394 -2641 907 - 283 -1313 Mitch Burns Drilling Supervisor 907 - 283 -1312 907 - 394 -2641 907 - 283 -1313 2. Regulatory Agency Contacts 2.1.1. Internal Regulatory Contact Contact Title Office Phone Cell Phone Home Phone Facsimile Tiffany Stebbins Regulatory Compliance 907 - 565 -3043 907 - 529 -0522 907 - 565 -3076 2.1.2. External Regulatory Contact Contact Title Office Phone Facsimile 24 hr Emergency Pager AOGCC 907 - 793 -1236 AOGCC North Slope Pager - 907 - 659 -3607 3/18/2009 Page 5 of 19 • KBU 42 -6X Marathon Oil Company Drilling Program Alaska 3. Regulatory Compliance Regulation Requirement Prior to Rig Move Notify Alaska Department of Natural Resources 24 hours before moving the rig. BOP testing interval requirement is now 14 days (20 AAC 25.035 e 10 A). BOP Testing Requirement for a 24 hour notice to AOGCC and to the BLM prior to BOP tests. (20 AAC 25.035 e 10 F) Prior to Spud Requirement for a 24 hour notice to AOGCC and to the BLM prior to spud of the well. Water Sampling Test the rig camp water for the Class C drinking water permit. Surface Casing & Cementing Requirement for a 24 hour notice to the BLM prior to setting, cementing, and testing surface casing. Intermediate Casing & Requirement for a 24 hour notice to the BLM prior to setting, cementing, and testing intermediate casing. Cementing Cuttings Tank Take picture of cutting tank in use and after cleaning for the ADEC. Logging Requirement for a 24 hour notice to the BLM prior to logging. Production Casing & Requirement for a 24 hour notice to the BLM prior to setting and cementing Production casing (EXCAPE string) Cementing the well. Requirement for 2 pipe rams, one blind ram, and one annular for an operation where the maximum potential surface pressure of is greater than 3,000 psi. Marathon is requesting a waiver from the above regulation for KBU 42 -6X. We are requesting that the BOP stack be configured with one pipe ram instead of two, due to rig height restrictions in the running of the 3 1/2" EXCAPE production casing. 20 ACC 25.035 (e) (1) (B) (i) The height restriction involves having rig crew members routing control line and electrical line through the tubing head and tree adapter flange after the 3 1/2" casing is cemented and the BOP stack is picked up. This is prior to setting the casing on slips and cutting the casing sticking up. These lines control firing of the perforating guns and the monitoring of downhole pressure and temperature in our EXCAPE completion system. Similar waivers have been requested for EXCAPE completion wells in the Kenai Gas Field and were granted. No problems were encountered while doing this operation on any of the wells. Utilizing the 13 5/8" 5M stack currently found on the Glacier Drilling #1 rig is more than sufficient for pressures to be encountered. Comments • 3/18/2009 Page 6 of 19 • 0 KBU 42 -6X Marathon Oil Company Drilling Program Alaska 4. Drilling Program Summary 4.1 General Well Data Well Name KBU 42 -6X Lease / License Surface Location 537' FNL, 1,036' FEL, Sec. 7, T4N, R11W, S.M. WBS Code DD.08.18993.CAP.DRL Slot /Pad KGF Pad 41 -7 Field Kenai Gas Field Spud Date 3/29/09 (est.) KB (above MSL) 87' County /Province Kenai Peninsula API No. GL (above MSL) 66' State / Country Alaska Permit No. Perm. Datum KB Total MD 10,295' Well Class Development Water Depth N/A Total TVD 8,557' Rig Contractor Glacier Drilling Water Protection Depth Rig Name Glacier Rig 1 Best Practices: 1 Comments: 4.2 Working Interest Owners Information Company Working Interest Address Phone Facsimile Marathon 100% P.O. Box 196168 907- 561 -5311 907 - 565 -3076 Anchorage, AK 99519 -6168 4.3 Geologic Program Summary Surface Location Coordinates — NAD 83 From Lease /Block Lines 537' FNL, 1,036' FEL, Sec. 7, T4N, R11W, S.M. Latitude 60° 27' 26.850" N Longitude 151° 14' 57.696" W UTM North (Y) 2,361,232.740' UTM East (x) 1,414,892.431' Tolerance Pore Pore MD - RKB TVD — RKB Pressure Pressure Possible Formation (ft) (ft) (psi) (ppg) Lithology Fluid Content Sterling A -8 (Not a Prod Target) 4,966 3,597 0.8 — 6.5 Sandstone Gas/Water Beluga (Not a Prod Target) 6,440 4,712 1.5 — 7.3 Sandstone Gas Middle Beluga (Primary Target) 7,110 5,372 5.8 — 10.6 Sandstone Gas Lower Beluga (Primary Target) 7,820 6,082 5.8 — 10.6 Sandstone Gas Tyonek (Primary Target) 8,975 7,237 3.8 — 10.6 Sandstone Gas Tyonek 84 -6 (Primary Target) 10,105 8,367 12.1 —12.3 Sandstone Gas 3/18/2009 Page 7 of 19 • • KBU 42 -6X Marathon Oil Company Drilling Program Alaska Horizontal Depth (KB) Displacement (ft) MD TVD +N / -S +E / -W Tolerance Target (ft) (ft) Location (Y) (X) (ft) Middle Beluga 7,110 5,372 3,225' FSL, 673' FEL, Sec. 6, T4N, R11W, S.M. 3,762 363 Circle 150' radius Lower Beluga 7,820 6,082 3,225' FSL, 673' FEL, Sec. 6, T4N, R11W, S.M. 3,762 363 Circle 150' radius Tyonek 8,975 7,237 3,225' FSL, 673' FEL, Sec. 6, T4N, R11W, S.M. 3,762 363 Circle 150' radius Tyonek 84 -6 10,105 8,367 3,225' FSL, 673' FEL, Sec. 6, T4N, R11W, S.M. 3,762 363 Circle 150' radius TD 10,295 8,557 3,225' FSL, 673' FEL, Sec. 6, T4N, R11W, S.M. 3,762 363 Circle 150' radius Comments: 1. There are no zones from surface to TD that have water with a TDS of 10,000 ppm or greater. 2, No zones above the Sterling (4,966' MD, 3,597' TVD) contain oil or gas. 3. The proposed top of cement is over 500' above the Sterling, the highest known hydrocarbon bearing zone. 4.4 Summary of Potential Drilling Hazards Depth KB Hazard Event (TVD) Discussion Precautions Lost Circulation in Low Pressure Intermediate Control losses by using sufficiently sized LCM, Take care not to surge the hole during Sterling and Beluga sands Hole including calcium carbonate types. tripping operations. Over - pressured Tyonek 84 -6 Production Control using sufficiently high mud weight to control Kick tolerance is slightly under 60 bbls. sand Hole pore pressure. Potential Hazards Statement To comply with state regulations the Potential Hazards section and the well shut -in procedures must be posted in the driller's dog house. The man on the brake (driller or relief driller) is responsible for shutting the well in (BOPE or diverter as applicable) as soon as warning signs of a kick are detected and an influx is suspected or confirmed. A copy of the approved permit to drill must be kept on location and be readily available to the AOGCC or BLM inspector. This well's primary objective is gas and no oil sands are expected to be encountered. No H is anticipated. Gas sands will be encountered from +1- 4,966' MD (3,597' TVD) to total depth of the well. These sands will run from highly depleted to above normal pressure. Lost circulation and differential sticking are potential hazards in some of the Sterling and Beluga sands. 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: 3/18/2009 Page 8 of 19 • • KBU 42 -6X Marathon Oil Company Drilling Program Alaska 4.5 Formation Evaluation Summary Interval LWD Electric Logs Mud Logs Surface None None None 0' — 2,509' MD Intermediate None None Basic with GCA, shale density, temperature in and 2,509' — 7,085' MD out, sample collection (10' samples). Production None Reeves Quad Combo, MFT Pressures. Basic with GCA, shale density, temperature in and 7,085' — 10,295' MD Pull GR- Neutron to surface. out, sample collection (10' samples). Completion N/A GR, CCL, CBL N/A Comments: 4.6 Drilling Program Summary Drive Pipe: N/A Conductor: 20" set to approximately 120', prior to drilling rig move. MIRU drilling rig. NU diverter. 1. RU crane and hammer. Drive 20" conductor to +/ -120 ft. RKB. RD crane and hammer. 2. Move in and rig up rotary drilling rig. 3. Install starting head 20" SLC x 21 1/4 ", 2M flanged. 4. Nipple up 21 1/4 ", 2M diverter, 16" diverter valve, and 16" diverter line. 5. Function test diverter and diverter valve. Best Practices: 1 Comments: Surface: Drill 16" hole to +/- 2,509' set 13 -3/8" casing. • 1. Drill a 16" hole to 2,509' MD (2,179' TVD) per the directional plan. 2. RIH with 13 3/8" casing and hang off in the elevators. Make up stab -in sub and centralizer on 5" drill pipe. TIH with inner string and latch into stab -in float collar. Cement 13 3/8" casing. Sting out, shear out drill pipe wiper plug, and circulate drill pipe clean. TOOH with inner string. 3. Cut off 13 3/8" casing. ND diverter. 4. Install 13 3/8" slip lock connection X 13 5/8" 5M flanged multibowl wellhead. 5. NU 13 5/8" 5M BOP'S. Test BOP'S and choke manifold to 250/3,500 psi. 6. Set wear bushing. 7. Test surface casing to 1,500 psi. Best Practices: 1 During cementing operations, take returns in the cellar, instead of into the pits. Eliminates the clean up of pits from cement that circulated to surface. Vac trucks will pull from cellar. Comments: Intermediate: Drill 12 -1/4" hole to +/- 7,085' set 9 5/8" casing. 1. PU 12 1/4" PDC bit and directional BHA. Drill out float equipment and 20' of new formation. CBU. 2. Test shoe to an FIT of 13 ppg. Estimated Leak Off EMW is 15 ppg. 3. Drill 12 1/4" directional hole to 7,085' MD (5,347' TVD) as per directional program, short tripping as required. 3/18/2009 Page 9 of 19 • KBU 42 -6X Marathon Oil Company Drilling Program Alaska 4. At TD circulate hole clean. Make wiper trip. TOOH and laying down BHA and 5" drill pipe. Pull wear bushing. 5. Change out variable pipe rams with 9 5/8" casing rams. Run test plug and test casing rams to 3,500 psi. 6. Run and cement 9 5/8" casing. Land hanger in multibowl wellhead. 7. Back out landing joint. Change out 9 5/8" casing rams with variable pipe rams. Run test plug and test rams to 250/3,500 psi. 8. Set wear bushing. Test casing to 2,000 psi. Best Practices: 1 Pre -heat mud mix water to help in early shaker screen blinding issues with the mud. 2 Put lubricant in prior to drill out of intermediate shoe. 3 -5% LoTorq is normally required, possibly more depending on solids in the mud. Maintain a minimum of 3% throughout the hole section. Comments: Due to anticipated losses in the Sterling and Upper Beluga, both calcium carbonate and fibrous material may be needed. Care must be taken on trips to minimize the possibility of surging the hole. Production: Drill 8 1/2" hole to +/- 10,295' set 3 -1/2" EXCAPE string. 1. PU 8 1/2" bit and directional BHA. RIH with drilling assembly, picking up 4" drill pipe. Drill float equipment and 20' of new formation. CBU. 2. Test shoe to an FIT of 13 ppg. Estimated Leak Off EMW is 15 ppg. 3. Drill 8 1/2" hole to an anticipated TD of 10,295' MD (8,557' 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 10,000 psi. 11. Rig down and move out drilling rig. Note: Drill the 16" and 12 1/4" hole sections with 5" drill pipe. Drill the 8 1/2" hole section with 4" drill pipe. 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 the 16" and 12 1/4" hole sections with 5" drill pipe to maximize hole cleaning hydraulics. The 8 1/2" hole section will require 4" drill pipe due to torque and drag values. 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% LoTorq is normally required, possibly more depending on solids in the mud. Comments: Completion: Completion will be done without a rig. This will include activating the EXCAPE perforating modules via hydraulic pressure on the control lines and fracture stimulation of targeted zones. Wellbore clean out will likely include slickline and possibly nitrogen jetting with coiled tubing. Best Practices: 3/18/2009 Page 10 of 19 • • KBU 42 -6X Marathon Oil Company Drilling Program Alaska 1 Comments: 4.7 Casing Program Summary MD (ft) Connection API Ratings Casing Makeup Hole - Q . o N m w Cl. Size Weight ID Drift O. D. Torque Size co B a ) (in) Top Bottom (Ibs /ft) (in) (in) Grade Type (in) (ft-Ibs) (in) 0 I- 13 3/8 0 2,509 68 12.415 12.259 K -55 BTC 14.375 N/A * 16 3,450 1,950 1,300 9 5/8 0 7,085 40 8.835 8.679 L -80 BTC 10.625 N/A * 12 1/4 5,750 3,090 979 31/2 0 10,295 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: i. ALL CASING WILL BE NEW CASING. . ii. OVERPULL above string weight, during casing running and cementing for the 3 1/2" string, must be limited to 89,500 Ibs. iii. FINAL TOTAL STRING WEIGHT to be set on the slips for the 3 1/2" casing string should not exceed 100,000 Ibs after WOC. A final value will be determined by the completions engineer and specified later. 4.8 Casing Design Casing Shoe Safety Factors Setting Maximum a) Casing Depth Mud Wt Frac. Form Surface o 0 Size Weight TVD When Set Grad Press Pressure o (in) (Ib /ft) Grade (ft) (lb/gal) (lb/gal) (lb/gal) (psi) m U 1- 13 3/8 68 K -55 2,179 9.2 15.0 8.4 805 2.16 1.87 2.53 9 5/8 40 L -80 5,347 9.2 15.0 7.0 3,156 1.59 1.21 2.53 31/2 9.3 L -80 8,557 12.2 15.0 12.1 3,156 1.10 1.94 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 2,179 2,313 805 30/70 9 5/8 5,347 4,025 3,156 30/70 3 1/2 8,557 5,778 3,156 30/70 * MAWP = Maximum allowable working pressure ** MASP = Maximum anticipated surface pressure 3/18/2009 Page 11 of 19 • KBU 42 -6X Marathon Oil Company Drilling Program Alaska The calculation method for MASPBHP has been modified from the standard AOGCC use of a Bottom Hole Pressure — 0.1 psi /ft gas gradient to what Marathon considers a more accurate Bottom Hole Pressure — 30% Mud Column — 70% Gas Column. This method follows the MMS standard for any well with a TVD of 12,000' or Tess. Marathon believes that constant gas monitoring and proper rig supervisor well control training will prevent the possibility of a wellbore being completely evacuated with only a gas gradient remaining. Surface casing: 13 3/8" (2,509' MD, 2,179' TVD) MASPfrac = ((Fracture gradient at shoe) x .052 x TVDshoe) - Hydrostatic pressure of gas column at the shoe. MASPfrac = (15.0 ppg x .052 x 2,179') - (0.1 psi /ft x 2,179') MASPfrac = 1,700 psi - 218 psi MASPfrac = 1,482 psi. MASPbh = BHP • open hole td — Hydrostatic pressure of mud portion — Hydrostatic pressure of gas portion MASPbhp = (7.0 ppg x .052 x 5,347') — (0.3 x 9.2 ppg x .052 x 5,347') — (0.7 x 0.1 psi /ft x 5,347') MASPbh = 1,946 psi — 767 psi — 374 psi MASPbh = 805 psi = 0 psi MASP = MASPbh = 805 psi MAWP = (0.7 x Casing Burst) — (Mud Wt. — Backup Fluid Wt.) x .052 x TVD MAWP = (0.7 x 3,450) — (9.2 — 8.3) x .052 x 2,179' MAWP = 2,415 psi — 102 psi = 2,313 psi Intermediate casing: 9 5/8" (7,085' MD, 5,347' TVD) MASPfrac = ((Fracture gradient at shoe) x .052 x TVDshoe) - Hydrostatic pressure of gas column at the shoe. MASPfrac = (15.0 ppg x .052 x 5,347') - (0.1 psi /ft x 5,347') MASPfrac = 4,170 psi - 535 psi MASPfrac = 3,635 psi. MASPbh = BHP • open hole td - Hydrostatic pressure of mud portion — Hydrostatic pressure of gas portion MASPbhP = (12.1 ppg x .052 x 8,557') — (0.3 x 12.2 ppg x .052 x 8,557') — (0.7 x 0.1 psi /ft x 8,557') MASPbhp = 5,384 psi — 1,629 psi — 599 psi MASPbhp = 3,156 psi MASP = MASPbhp = 3,156 psi MAWP = (0.7 x Casing Burst) — (Mud Wt. — Backup Fluid Wt.) x .052 x TVD MAWP = (0.7 x 5,750) — (9.2 — 9.2) x .052 x 5,347' MAWP = 4,025 psi — 0 psi = 4,025 psi Production casing: 3 1/2" (10,295' MD, 8,557' TVD) MASPfrac = ((Fracture gradient at shoe) x .052 x TVDshoe) - Hydrostatic pressure of gas column at the shoe. MASPfrac = (15.0 ppg x .052 x 8,557') - (0.1 psi /ft x 8,557') MASPfrao = 6,674 psi - 856 psi MASPfrac = 5,818 psi. MASPbhp = BHP open hole td - Hydrostatic pressure of mud portion — Hydrostatic pressure of gas portion MASPbhp = (12.1 ppg x .052 x 8,557') — (0.3 x 12.2 ppg x .052 x 8,557') — (0.7 x 0.1 psi /ft x 8,557') MASPbhp = 5,384 psi — 1,629 psi — 599 psi MASPbhp = 3,156 psi 3/18/2009 Page 12 of 19 • . KBU 42 -6X Marathon Oil Company Drilling Program Alaska MASP = MASPbhp = 3,156 psi MAWP = (0.7 x Casing Burst) — (Mud Wt. — Backup Fluid Wt.) x .052 x TVD MAWP = (0.7 x 10,160) — (12.2 — 9.2) x .052 x 8,557' MAWP = 7,112 psi — 1,334 psi = 5,778 psi Best Practices: 1 Comments: 4.10 Casing Test Pressure Calculations Casing test pressure calculations are based on the lesser of (1) MASP, or (2) 70% of rated burst pressure of the casing adjusted for the mud weight used during the test less a 8.3 ppg back -up unless otherwise noted. AOGCC regulations state that casing pressures must be 50% of the BOP working pressure documented on the approved permit to drill. Best Practices: 1 Comments: 4.11 Blowout Prevention Equipment, Testing and General Procedures BOP PROGRAM Casing Test Test Casing Test Fluid Pressure Size MAWP MASP press Density BOPS Low /High Casing (in) (psi) (psi) (psi) (lb /gal) Size & Rating (psi) (1) 13 -5/8" 5M annular Surface 13 3/8 2,313 805 1,500 9.2 (1) 13-5/8" 5M pipe ram 250/3,500 (1) 13 5/8" 5M blind ram (1) 13 -5/8" 5M drilling spool with 3 -1/8" 5M outlets (1) 13 -5/8" 5M annular (1) 13 -5/8" 5M pipe ram Intermediate 9 5/8 4,025 3,156 2,000 9.2 250/3,500 (1) 13 5/8" 5M blind ram (1) 13 -5/8" 5M drilling spool with 3 -1/8" 5M outlets (1) 13 -5/8" 5M annular (1) 13 -5/8" 5M pipe ram Production 31/2 5,778 3,156 2,500 12.2 250/3,500 (1) 13 5/8" 5M blind ram (1) 13 -5/8" 5M drilling spool with 3 -1/8" 5M outlets Blowout Preventers The blowout preventer stack will consist of a 13 -5/8" x 5000 psi annular preventer, a 13 -5/8" x 5000 psi double gate ram type preventer with blind rams in the bottom and pipe rams in the top and a 13 -5/8" x 5000 psi drilling spool (mud cross) with 3 -1/8" x 5000 psi outlets. The choke manifold will be rated 3 -1/8" x 5000 psi. It will include a remote hydraulic actuated choke and a hand adjustable choke. Also included is a poor -boy gas buster, and a vacuum -type degasser. A flow sensor will be installed in the flowline and the mud pits will 3/18/2009 Page 13 of 19 • • KBU 42 -6X Marathon Oil Company Drilling Program Alaska 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. 4.11.2. Pressure Testing The Marathon Drilling Supervisor will verify all pressure tests of BOP's, surface lines, seals, casings and FIT or LOT tests. All tests are to be recorded on the IADC and daily drilling reports. Best Practices: 1 Comments: 4.12 Wellhead Equipment Summary Component Description Casing Hanger Type 13 5/8" x 9 5/8" Fluted Casing Head 13 -5/8" 3M X 13 -3/8" Slip Loc W/ 2, 2" LPO, Landing Base for 20" Conductor, U, AA, PSL1, PR1 Mandrel 13 -5/8" 3M Studded Bottom X 13 -5/8" 5M Flg Top, W/ 2, 2- 1/16" 5M Studded Outlets, 13 5/8" x 3 1/2" Manual Tubing Head U,AA,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 Summary Build Turn Coordinates Sec. MD TVD Rate Rate Dogleg Inclination Azimuth +N / -S +E / -W VS No. Description (ft) (ft) ( °/100') ( °/100') ( °/100') (deg) (deg) (ft) (ft) (ft) 1 Tie On 0 0 0 0 0 0 297.000 0 0 0 2 KOP 200.00 200.00 0 0 0 0 297.000 0 0 0 3 Build up Section 3.00 0 3.00 297.000 4 End of Build 1,166.67 1,125.92 3.00 0 3.00 29.000 297.000 , 108.71 - 213.36 87.69 5 Build/Turn Section 3.24 2.88 4.00 6 End of Build/Turn 2,509.38 2,178.85 3.24 2.88 4.00 54.747 14.294 842.26 - 380.42 801.78 7 Hold Section 0 0 0 54.747 14.294 8 End of Hold 5,209.61 3,737.38 0 0 0 54.747 14.294 2,979.03 164.02 2,981.00 9 Drop Section -3.00 0 3.00 14.294 10 End of Drop 7,034.52 5,297.00 -3.00 0 3.00 0 14.294 3,761.55 363.40 3,779.06 11 TD 10,294.52 8,557.00 0 0 0 0 14.294 3,761.55 363.40 3,779.06 I 3/18/2009 Page 14 of 19 I III • KBU 42 -6X Marathon Oil Company Drilling Program Alaska I i i KBU 42-6X L Beluga KBU 42-6X Tyonek 1000 4000 - _ J--- --- ---- - i - - -- 133 /8" Surface Casing ---- --- - i - . ---- -- --- _ 01111 I 2000 - - I _ I - - - KBU 42 -6X Tyonek 84-6 _I - - -- � }- - L 1 KBU 42-6X M Beluga II -- - - — - — -- - - -- - I c 3000 0 3000— - .... .._ -- - ._ - _ .- ... - — , i _. ... ? - N o T __ _ _ __ __ 0 _ - -- 1 - -- -- - - -- 1— - - - - -- in _ KBU426XTD t 1_ -c 4000 19 5/8" Intermediate Casing— `. - aa) - 2000 0 0 5000 Z :C KBU 42-6X M Beluga , - - -- -- -- - - -- -- I , - -- - -- --- - -- II III _C- - a) 6000 KBU 4 - ) r r 1 2-6X L Beluga 5 1000 - - - - - -- r- 1 - -- -- ------ -- - -.. _ —.. _. -- -- KBU 42 -6X Tyonek - 7000— -- -- l _ . , _- - - -- T _. .. ..._ _. - -- -- - KBU 42-6X Tyonek 84 -0 -- - -- -- 3 1/2" Production Casing -- -0 8000- -. i____ - -- KBU 42- 6X TD_ - _-- _ ____ -- _____ -- ____ --- - -- - --- Th rr i+ r i 1 i i i i t . iii ._ - 1 i i i i i i i i i , i i 11 1 1 1 1 11 11 r 1 1 1 11 -1000 0 1000 2000 3000 4000 5000 6000 7000 -2000 -1000 -0 1000 2000 . Vertical Section at 5.52° (2500 ft /in) West( -) /East( +) (1500 ft /in) Comments: Vertical section calculated from a reference azimuth of 5.52° taken from surface location to bottom hole location. Potential Well Interference: Well Distance (ft) Depth (MD) KDU 9 79.15 1,551 KBU 34 -6 117.52 2,191 KU 43 -6RD 150.54 3,719 KU 43 -6 150.54 3,719 KBU 33 -6 190.57 3,110 KBU 42 -6 281.83 5,114 No serious interference exists. See attached directional plan and anticollision analysis for more details. Best Practices: 1 Comments: 4.14 Directional Surveying Summary Other Survey Interval MD (ft) MWD Survey Magnetic Multishot Gyro Multishot Remarks Tool Surface 0 — 2,509' X Intermediate 2,509' — 7,085' X Production 7,085' — 10,295' X Best Practices: 1 3/18/2009 Page 15 of 19 • • KBU 42 -6X Marathon Oil Company Drilling Program Alaska Comments: 4.15 Drilling Fluid Program Summary Interval — TVD Minimum Inventory From To Density Gel (ft) (ft) (Ib /gal) Fluid Description Additives Viscosifier Barite 0 2,179 8.8 — 9.1 Gel / Gelex Spud Mud Gel, Gelex, Caustic Flo -Vis, PolyPac Supreme UL, KCI, SafeCarb, 2,179 5,347 9.1 — 9.5 3% KCL Flo -Pro NT w/ Safecarb Sack Black, Lo Torq, Caustic, Conqor 404, Sodium Meta Bisulfate, KlaGard Flo -Vis, PolyPac Supreme UL, KCI, SafeCarb, 5,347 8,557 9.6 — 12.3 3% KCL Flo -Pro NT w/ Safecarb Sack Black, Lo Torq, Caustic, Conqor 404, Sodium Meta Bisulfate, KlaGard Best Practices: 1 Because the production zone will be fracture stimulated, the mud system from the intermediate section will be re -used for the production hole after cleanup through the on -site centrifuge. Comments: 4.16 Drilling Fluid Specifications Interval — TVD LSRV Drill From To Density Vis 1 min PV YP Fluid Loss Solids (ft) (ft) (lb/gal) (sec /qt) (Ib. /100ft (cP) (Ib /100 ft (cc) pH ( %) 0 2,179 8.8 -9.1 60 -100 N/A 15 -24 >30 <18 8.0 -9.0 <6 2,179 5,347 9.1 -9.5 25- 35,000 10 -16 12 -18 5 -7 9 -9.5 <6 5,347 8,557 9.6 — 12.3 30 — 40,000 16 - 25 14 - 20 5 — 6 9 — 9.5 < 6 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 1/2" production casing will be treated with corrosion inhibitor (Congor 303A) at a concentration of 1 drum per 100 barrels of drilling fluid. Comments: See mud prognosis for details. Sized CaCO3 (SafeCarb) will be used to control leakoff. 3/18/2009 Page 16 of 19 I • • KBU 42 -6X Marathon Oil Company Drilling Program Alaska 4.17 Solids Control Equipment c o Q) U o o (6 al O) 0 C V (0 (/) N x m m U v o c o o C Interval 0) O 0 U v U N Comments 0 — 10,295' MD X X X X Closed Loop System, Full Containment, Run shakers with finest screens possible Equipment Specifications Item (quantity, design type, brand, model, flow capacity, etc) Shaker 2 — Swaco Mongoose PT Desander N/A Desilter 1 — Derrick Model 0522 Mud Cleaner N/A Centrifuge 2 — MI /Swaco units Cuttings Dryer N/A Cuttings Injection Marathon G &I Facility Zero Discharge N/A 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: 3/18/2009 Page 17 of 19 • • KBU 42 -6X Marathon Oil Company Drilling Program Alaska 4.18 Cement Program Summary Depth Gauge Top of Cement Gauge Ann Vol Slurry Casing Hole Ann Vol With OH Density Open Hole Thickening Size MD TVD Size MD TVD To TOC Excess Lead/Tail Excess Time (in) (ft) (ft) (in) (ft) (ft) (ft (ft (PPg) ( %) (hrs) 20 132 132 Driven N/A 13 3/8 2,509 2,179 16 0 0 1,124 1,907 12.0 75 8 9 5/8 7,085 5,347 12 1/4 4,400 3,270 841 1,211 10.5 40 8 31/2 10,295 8,557 81/2 6,500 4,769 1,260 1,684 15.8 40 N/A Mix Water Compressive Casing Slurry TOC Strength Size Density Qty Yield Vol MD Qty WL FW (psi) (in) Slurry Cement Description (lb/gal) (sx) (ft /sx) (ft (ft) (gal /sx) Type (cc) ( %) 8 hr 24 hr 13 3/8 Tail Type I Cement 12.0 760 2.51 1,907 0 11.28 Fresh 812 0 196 818 9 5/8 Tail Class "G" 10.5 365 3.32 1,211 4,400 12.61 Fresh 3 1/2 Tail Class "G" 15.8 1,439 1.17 1,684 6,500 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: 1. Volume calculations assume 40' internal cement shoe track for the stab -in surface shoe and 80' of internal cement for the remaining shoe tracks. See cement prognosis for details and spacer specifications. 2. Centralizers for the casing strings will include at least 1 per joint on the bottom 3 joints as per BLM regulations. 4.19 Bit Summary Interval — MD Type Recommended Estimated Expected From To Size WOB Rotating Minimum ROP (ft) (ft) (in) Manufacturer Model No. IADC (kips) RPM Hours (ft/hr) 0 2,509 16 Christensen MX -1 115 27.5 - 65 Motor 2,509 7,085 12 1/4 Christensen HCM 506Z M323 Up to 52 Motor 7,085 10,295 8 1/2 Christensen HCM 506Z M323 Up to 29 Motor Best Practices: 1 Comments: See bit prognosis for additional information. If a second bit is necessary for the 12 ' /<" hole an MX -18DX (IADC 447) should be used to finish this section. Back up bits for the 8'/2" hole section will consist of an MXL -18DX (IADC 447) bit. 3/18/2009 Page 18 of 19 • • KBU 42 -6X Marathon Oil Company Drilling Program Alaska 4.20 Hydraulics Summary Max Press @ Displacement @ Max Rate © Liner ID Stroke 90% WP 95% Vol. eff 95% Vol. eff Hole Sections Used Qty Make Model (in) (in) (psi) (gal /stroke) (spm /gpm) On 5 8 2,597 2.04 125 / 255 Surface 3 National Oil Well A600PT 5 8 2,597 2.04 125 / 255 Intermediate 5 8 2,597 2.04 125 / 255 Production Est. Hole Pump Standpipe Openhole Nozzle OP at Depth -MD Size Rate Pressure Min AV MW ECD Size bit (ft) (in) (gpm) (psi) (fpm) (ppg) (ppg) (32 "s) (psi) Remarks (Drill string configuration) 9.0 9.24 2 — 18's MI Virtual Hydraulics 2,509' MD 0 — 2,509' 16 800 1,874 85 1 — 16 y (@ MD) 2,509' — 7,085' 12 1/4 450 1,641 88 9.4 9.69 6 — 13's MI Virtual Hydraulics (@ 7,085' MD) 7,085' — 10,295' 8 1/2 400 1,982 174 12.3 13.31 5 — 15's MI Virtual Hydraulics (@ 10,295' MD) Best Practices: 1 Drill the 16" and 12 1/4" hole sections with 5" drillpipe to maximize hole cleaning hydraulics. Due to torque and drag, 4" drillpipe will be needed for the 8 1/2" hole. Comments: See separate hydraulics calculations. Annular velocities in the 16" and 12'/4" holes were calculated with 5" drillpipe, and the 8 1 /2" hole was calculated using 4" drillpipe. 4.21 Formation Integrity Test Procedure Surface and Intermediate casing shoes will be tested to an FIT instead of 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. FIT tests are to be conducted the same as described by the LOT test above, except in step 4, where the pumping would stop at the specified pressure to achieve an FIT required. Note that leakoff is always possible, prior to the specified FIT, due to formation variations. Best Practices: 1 Comments: 3/18/2009 Page 19 of 19 Marathon Oil Well KBU 42 -6X Diverter Flow line 21 1/4" 2M Diverter .� 16" Automatic Knife Valve milmmmi■ E_ Diverter Spool 11 - R � 16" Diverter Line 0 1 Marathon Oil Well KBU 42 -6X BOP Stack (Flow Nipple I Flow Line _ ----- 0- ■ 13 5/8" 5M Annular Preventer NIIMIr 13 5/8" 5M Double Ram Preventer . Pipe Ram . �► 2 1/16" 5M . Blind Ram . Check Valve 2 1/16" 5M Manually 3 1/8" 5M Manually Operated Valves Operated Valve - -� X 'I' ® Choke H X 13 5/8" 5M Cross I 3 1/8" Hydraulically Operated Valve 13 5/8" 5M x 13 5/8" 5M ........„...-----■ Drilling Spool 1711 Bottom of mud cross must be 24 -45" from ground level for Glacier 1 rig placement. 13 5/8" 5M Tubing Head Flange 0 • Marathon Oil Well KBU 42 -6X Choke Manifold To Gas Buster Bleed off Line to To Blooey Line Shakers - MI Q VP u - lip o� � — — o� o ,o 0 0 '°� I I 1 1 I' ( 11 f ' 1 It 1I 1 1 1 1 1 1 1 ' 1 — _ TIP VP I I - Q I / I 0 mMIIII - _I I 11[©01111[0 _ o _ 0 1110 3" 5M Valves t mela 2 9/16" 10M Swaco ' i 3 1/8" 5M Manually Hydraulically Operated Adjustable Choke Choke Gauge Block Choke Hose to HCR f e (from BOP Stack) 0 - 6,000 psi Choke Control Pressure Gauge Pressure Sensor , . .. .. . . . . , . .„ ,.. 1 A.' .";'' ' •,' ' ', 144, .. , *;' ,6 *' V -,;;;''..-. ;,:f , ilml I., i 44 Invilitid fj l'Itt litmf' "toot*" Ar m vmhw vti t000sov ovolootto fi4motb ',4*hi, td**-it !Awl 30 Ott i Ati..14 004 8 4 VIMWO 8 MOO*** MU peretuders Antotter Posowor "Rd vow WINO* kfaeltaray Gedgei 04060 der 8 ri wr Hydril Regulatiar , Votvo wituatidefr from 0-1600 Pal friathele araterd 10(10 1 - 1 Annular Mediate mime" ltOafrOtel. 1 P ArA2u"11"W' resiture ti Melee* indepoindere (repletion 0 the . outmeity Meurfkid Regidetor aresidat operpling 44 Gauge Verve- Nermatly In low ...,,, . , u 6000 Ofellettre pressure (eft) position normally For Operations over ammo 3000 1 1 I lbtigpst move to high Pressurefilight) positron — - Manifold Pressure # fi Gouge- 0-6000 cr. normally 1500psi , . Nitrogen rentotoNi Vales I ., • 0 0 i Pressure rfretesee mop embriD Screen - , Ms- • - G*KK 0 P threfrio Memo* Sweets - i i c lr11lEillr_ir , ii- 1600 Automaitakey Mon* pa they , , Mei - --- , F vortivition reach I , 3000 psi and stalls when foe pressure Mops to .. - - • . - . ' z, Ntizooprz ...t rsTitl ; Main Air tfrekeis - - ; - :isil - — Charged t i ; t to 7200top 6 Explosin o Roof Elect* MOW - ' i • Air Lubricator- lteretaSettator RefilValve . t _ 1 , iii '''' Use SAEI 0, sot 340 Ofr-tatt at 3200PSI 11111111111111111111 . ' - . at 6 drops i mos nese oar Clime ° •,, ,,,,4"it,--• - -iteooAti "› • - - ' ' '''' - ' Aiiii.X. • - weeklv . i 't,-,..ii•,z, ...,,,,.. ... . Belt Guard- Triplex Galley Isolation i Air Pressure Switch Drain Valve Electric 1 Valve it Air for Bypass- Normally closed Pumps- 411 Motor Triplex 60-1 Ratio but open with pressures Triplex Pump- Switch- Pump- f above 3000 psi Check. oil level KePP in Nornially II Strainer ft monthy Fill auto open, For Air Pumps with 10w 40 position close for Suction Valve For Turn off pressure Air operated when l exceeding Pumps. reamians .. servicing iiii t 3000 PSI open, close during la serviceing Suction strainer for Tiplex pump :Jean every 30 days it 1 • • Surface Use Plan for KBU 42 -6X Surface Location: 537' FNL, 1,036' FEL, Sec. 7, T4N, R11 W, S.M. a. Existing Roads Existing roads which will be used for access to KBU 42 -6X are shown on the attached map. Kenai, Alaska is the nearest town to the site and is also shown on the topographic map. 1. Marathon owns the existing lease road and will maintain the road in a proper manner before, during, and after drilling operations. Plans for maintaining the road would include grating and adding road materials to maintain road grade. This is an unpaved road. 2. Marathon will not use any roads under Forest Service jurisdiction. b. New or Reconstructed Access Roads No new roads will be required to access KBU 42 -6X. c. Location of Existing Wells Well KBU 42 -6X will be drilled on Kenai Gas Field pad 41 -7. A signed surveyor's drawing is enclosed that shows existing wells and the location of KBU 42 -6X. d. Location of Existing and /or Proposed Production Facilities The locations of existing production facilities in the Kenai Gas Field pad 41 -7 are shown on the signed surveyor's drawing. A flowline will be installed from the KBU 42 -6X wellhead to the existing production facilities. e. Location and Types of Water Supply A water supply well exists on the pad that KBU 42 -6X will be drilled from. This is shown on the surveyor's drawing. Marathon has a Temporary Use Water Permit (A2007 -89) from the Alaska Department of Natural Resources. The well is approved for potable use a Class C water system by the Alaska Department of Environmental Conservation. f. Construction Materials No major construction is planned on the pad at this time. Leveling of the pad for this work will be done with minimal materials needed. No new dikes or ditches will be constructed. No additional road material will be brought on the pad. There are no topsoil or material stockpiles on the pad. g. Methods of Handling Waste; 1. Mud and Cuttings Cuttings will be dewatered on location. The drilling waste and fluids will be hauled via vacuum truck to Pad 41 -18 of the Kenai Gas Field for disposal into a Class II disposal well (AOGCC Disposal Injection Order No.9, Permit #81 -176). Marathon obtains a temporary waste storage approval from the ADEC for temporary onsite storage. 2. Solid Waste All household and approved non - hazardous solid waste will be hauled to the Kenai Peninsula Borough Soldotna Landfill. Oily materials (rags and /or plastic liner) are disposed by a third party. 3. Completion Fluids Clear fluids will be injected into approved disposal wells Kenai Gas Field # 2 (Alaska Oil and Gas Conservation Commission Disposal Injection Order No. 4) or hauled to Pad 41- 18 of the Kenai Gas field and injected in Well WD #1, an approved disposal well (AOGCC Permit #7 -194). 4. Chemicals Unused chemicals will be returned to the vendors that provided them. Efforts will be made to minimize the use of all chemicals. 5. Sewage There is no discharge onsite and all waste water will be hauled to the Kenai sanitation facility by a qualified 3rd party. h. Ancillary Facilities A minimal camp will be established on the pad to house various supervisory and service company personnel. Approximately five mobile trailer house type structures will be utilized for this purpose. No camps, airstrips, or staging areas will be constructed. Bottled water will be used for human consumption. Potable water will be obtained from the existing water well on the pad. A qualified 3` party will collect and transport sanitary wastes to their ADEC approved disposal facility. No additional structures will be necessary. i. Well Site Layout Please see the attached plats identifying the pad and the location of drilling rig over KBU 42 -6X, with the approximately planned orientation. The Glacier rig utilizes a closed loop system, no earthen pits are utilized. All fluids are contained in steel tanks as part of the rig package. j. Plans for Surface Reclamation KBU 42 -6X will be drilled from an existing pad. Reclamation of the pad will occur after the abandonment of KBU 42 -6X and the other existing wells on the pad, and will be restored to the satisfaction of the the surface owners and the U.S. Bureau of Land Management. k. Surface ownership The surface owner of the land in the Kenai Gas Field Unit is Salamatof Native Association. The minerals are under the jurisdiction of the U.S. Bureau of Land Management. A copy of the surface use plan has been provided to the surface owner, as required. I. Other Information 1. Marathon's Glacier drilling rig has multiple containment features including a timber -diked plastic liner laid on top of the drilling pad. Each rig component sitting on top of the plastic liner has its own containment system. 2. All rig operations are preceded by a pre -job safety meeting. Marathon acknowledges that all personnel, contract or Marathon employee, can stop the job if there is a safety or environmental concern. • • Operator Certification Field: Kenai Gas Field Well: KBU 42 -6X Surface Location: 537' FNL, 1,036' FEL, Section 7, Township 4N, Range 11W, SM AK I hereby certify that I, or someone under my direct supervision, have inspected the drill site and access route proposed herein; that I am familiar with the conditions which currently exist; that I have full knowledge of state and Federal laws applicable to this operation; that the statements made in this APD package are, to the best of my knowledge, true and correct; and that the work associated with the operations proposed herein will be performed in conformity with this APD package and the terms and conditions under which it is approved. I also certify that I, or the company I represent, am responsible for the operations conducted under this application. These statements are subject to the provisions of 18 U.S.C. 1001 for the filing of false statements. Executed this 18` day of March , 20 09 Name Willard J. Tank ,, -Ritr 4 W.7 j Position Title Advanced Senior Drilling Engineer Address P.O. Box 3128, Houston, TX 77253 -3128 Telephone 713 - 296 -3273 Field Representative Pete Berga (Drilling Superintendent) (if not above signature) Address 3201 C Street, Suite 800, Anchorage, Alaska 99503 (if different from above) Telephone 907 - 565 -3032 (if different from above) E -mail witank(a�marathonoil.com (optional) • 1 . . , „ 7 8 OF At iCtil, I . - ' - . :,,,, :' E : :7"/ f ', ; ' ' N 36199a63 '•••% c ' tt .., : . • . . • . ,' E27590961 ..... ii ...4. If ' .-- 1 L. .171 ::,21 ; .i. : 1 ■••• * 4 11:1, -)‘ ..* 00 ' ,. 0 KENAI GAS _ 00 00 I ' O 0°.1 .-34-0.1 tr....•,,,...: FIELD . o o Z 00 A ',M. SCOTT McLANE: ..: K„Li. ',., PAD 41- 7 V 1 1 '; E 0 4 , "5 928—S ...* ••• , _ . - 1,"" - :-- : ' : : irs,1,,bai / •• -... ,. - 2 .- .. , 4,', ,;,,, t ',,: c:, „ , ,„ , r . I .,__,___,,__. 1 I a N. ■■■• .. . , 5 • ? • I k 1 ONA „S I , 4 1 1% tvaNN . ;-,.ti 13-6 RD '-'' .- , N • 2:35180E:At-, . ( _1 i [ ' , N 23E1788.64 • -'_ 6 2 1 )1 F 275135.00 111 1 3, 1 1 Z ' ' ' ''' " 1 -"' ' • _J--.„4. .:..,,,., . , _ ', • \ 1 \ —1 ; - - • j 4_ _ -- • \ Z ) 1 ,,, T.._ I KAI 43-6:' '----- - 1 41-7Y \ 0 r-- i, N20;i6h4.9'=.' K.0 43-6A t , ;■36-17{ci F6' \ ...l eo . I I ,,t:,,, IL tr. a„ 6 ''.:75,-7 • N 23 61720.88 , :7:4,, ;;;' '" %., in ,,„ K,D.u. 4 E 275191 03 ' '''' ' '' W • i CO - - N 2361742.93 • : 1=',:: - ■: - : -. E27510929 Kli. 24-5 RD TO 14 K.D.U. 2 N 2361663,38 N 2361661.40 E 275232.36 . =E 275'179 • .2( j -T . —l— it 0 i 1 i'1,,,n!,,•,,,1,11:1:,,,,,,r / TGCUTAIF7g g --.% N 2361620.96 • E 275167.20 ., L •: r:::1 43-7 "..,.., K.U. 43 N 2361596 95 /1/ K.B.U. 42-6X 6275131.313 ., / AS-BUILT - „, f. MILL INC: , / / CONTROL POINT 1 2” ALCM. ASP ZONE 4 NAD27 , N:2361477.285 E:274864.686 - • ' LAT: 60°27'28.978"N 1036' FEL LONG:151°14'49.845"W FEL = 1036' FNL = 537' • K.0.23-8 ELEV = 65.7' (MSL) SECTION 7, N 2361411.06 E 275085.57 TOWNSHIP 4N II RANGE 11W, SM AK 11 ( il , -- i . . ,, .-, ■L ,_,\ ,9 ) 1 ' L . 1 - I C TIJ 4 SECTION 7 ---- 1. BASIS OF HORIZONTAL COORDINATES ARE ALASKA STATE PLANE NAD27 U. NORTH ZONE 4 DETERMINED BY A DIRECT TIE TO USC&GS TRI STA AUDRY HAVING A 0 PUBLISHED POSITION OF LAT. 60°30'50.559" N LONG. 151°1637.445W W N:2382045.42 0:269866.75 2) BASIS OF VERTICAL DATUM IS MEAN SEA LEVEL 0 ,2 w 3) NORTHEAST CORNER SEC. 7 COORDINATE DETERMINED FROM DIRECT SURVEY TIE TO THE TO EXISTING BLM WC FORE NW CORNER SEC. 7 AND SCALE WC lf, CORNER SECTIONS 6 & 7 RECOVERED AND NOT THE PROTRACTED SECTION CORNER VALUES. 0 100 200 I 1 1 FEET M MARATHON OIL COMPANY PROJECT KBU 42-6X AS-BUILT ISION: KENAI GAS FIELD PAD 41-7 REV 0 DATE: 03-13-09 DRAVVN BY: MSM . SURFACE LOCATION DIAGRAM ARATHON • AIASKA. IRBIZON NAD27 FOR INFORMATIONAL PURPOSES SCALE: 1".100' PROJECT NO. 083126 ONLY BOOK NO. ENGINEERING / MAPPING / SURVEYING 1 08-22 TESTING Aip _NNW kw P.O. BOX 468 SOLDOTNA, AK. 99669 LOCATION SHEET VOICE: (907) 283-4218 (907) 283-3265 S7 T4N R1 1W SEWARD MERIDIAN, ALASKA 1 0F 1 EMAIL; SAMCLANEOMCLANECG.COM • • . 7........0%......". 2 J N KU 3 W 14 -32 KU 34 -31 � JJ WD 4 1 n 3 �RU 1......... 1......... ' ` N t7�� `` l 34 K �y` U 0 KU ****18 4, ` KBU 41 -6 A 1-6 -6 0 l KD 07 � B 5 KU 0 Y 21 -6X o 7 6 DU KBU 42 -6X G' M 0 : KTU 8 43 -6X KBU • • 3 6 1 23X- . KBU K 4 1 : 5 6 03 KBU6X 1 6 - 43 6A KT U i 13-5 5 6 A & KTU 6 6� > 24 -6H 5 3 Kt, -g1 KOU �, �< KU • 4 2 5 5 4 @ 24 -5 KU 0 U 7U 2 2 4� 24 -5RD 2 3 5 N ..9. A A ,,o A 1 11„ 5 . _ v 3 1 • K 8 U @ 1 � ' � KBU 3 1 Vii' TT 24 -6 3 o KBU O * Y�. Wr \. .3 • • • m (7 O 11 -8X 1 U P 0 3 2 a a► 1 KDU P 1 (it 2 2 P 5 2 _ W p N KU ? • N • K: 1 7 KBU 1 -7X 5 A - , , 3 -8 @ N 3 KTU ,2 -7 32 -7H 1 4 S 5 • @ 3 4 ' @ KT 4. 32 7 6 4 7 KBU g $ 5 13 -8 S• KBU 4RD o 33 -7 @ BU 5 73 -12 6 . -7 6 0 • , -7 1 @ �;.: U 3 -7X - 5 xw ... 6 Marathon Oil Company KBU 24- X V H 41 KU -18 4 -7 q 4 0 2 N h A a 3 5 3 o• 11 h D • N 7 U 2 7 5 D N Beluga /Tyonek PA Kenai Gas Field, Alaska 0.25 mi 0 9 TOPO! map printed on 04/16/08 from 1MOC_KBU- 23- 8_Map.tpo " 151 °18med W 151 °16.0X? W 151 °14000 W 151 °12. W 151 °10.000 W WGS84 151°07.00(1` W n irt ■ 1. 1 t ,. �. a el # . tt a ,'C ! �. �_ _... re t � .. -. ' Z: y A 4t - - a i ` - Lam._ ^,.+ t a y , t 4 , .1 k t „„ t E ._ e `' . • _ -- . . .R . _ PrLX4EE.. e..}". 35, . . i 4 t 25 25 x1 C. 0 7 s � Fhx GdS _ _ _ — - {'� - 1S [ R27 �- �- Y �d w �ttYQ v 3 'Pad :g. �. i ' u t . li „, re, . ,,. ,i, - _ ',..: K u,ukx Beast Ra l j l trn u R to , t < _15 ` „ , gt tat :::,t4, ' ' 32 tr , - 41 n � s w.a .' I i ” is I i Pad 3A-3I (]t farattyaa Office)' rraa 4,3,71/ l Fl r W44ias Yt14 -t 77 <o row . 11 � y E 5 _� 4 E`' Pits 4 ti, • r t ; f r Wens KBU 42 -6X 44 , 4 4 4 I ,� �' t � 1 F ' , 414744 R44,41 I Pad 41.7(Project Lot ali ¢ ttf1i laratln ' , ) X 1 t k - Strip t' z 'f 1 7 8 I 9 .„., r: e ".V.. ➢ , k 4 ` ��" r �i ter' l ] ' t, r t - d t tf MYr' a J r': •y 'Y: .o P ep $ � i . v . 3 +� -�? (rug yap t." p G47 YYdf a x {`'''w ; .t °t "4:,rs*+° � # 1 fvi r_3te - tut4.41 ©20% NaUOnak S4ao9rapf t 4 � 4 f st 151 1St, 000' W 151°16.4130' W 151 °14100' W 151 °12,000 W 151 °10.004• W WGS84 151°07.006' w �/��y 1N NN Nt1! IO� 0.0 0.5 1.0 1.5 miles 19° GEOGRAPHIC I,1,,',I h OA 0.5 1,0 15 2.0 2.5 km 04/16/3 Z _ r ----\ 1 +- 1' _ x I a • „ - I i- g en al • ET 55 �a�H ' ii h►n A • g o f 1 �' • 9 A ! 1- D. o 0 CL CC ui z 0 4.1: L • • 12 12 le w •• 0 n � in x t —.– — P. m • • 1 r♦. + h • W--^ -.- 1 i J x Ii id IfJ • 111 a x V7 . .. •` , 1 it I L _ .1 C c= :S = =C� =ss arc -- I i I a M VHS E I r "t 1 1 •- • 1 t I °' --� 1 I t13M ONS M!!Q +1 C; L Li J _ J JI 1 1 1 -__ • • • • NM M MARATHON Oil Company BAKER L ocation. Cook Inlet, Alaska (Kenai Penninsula) Slot: KBU42 -6X HUGHES Field: Kenai Gas Field (NAD83) Well KBU42 -6X ("�, MARATHON Facility: Pad 41 -7 Wellbore: KBU42 -6X i �+[ Plot reference wellpath is KBU42 -6X Version #4 True vertical depths are referenced to Glacier #1 (RKB) Grid System: NAD83 / TM Alaska State Plane, Zone 4 (5004), US feet Measured depths are referenced to Glacier #1 (RKB) North Reference: True north Glacier #1 (RKB) to Mean Sea Level: 87 feet Scale: True distance Mean Sea Level to Mud line (Facility: Pad 41 -7): 0 feet Depths are in feet Coordinates are in feet referenced to Slot Created by: jonethoh on 3/9/2009 Location Information Facility Name Grid East (USft) Grid North (USft) Latitude Longitude Pad 41 -7 1415937.350 2361755.090 60 °27'32.188 "N 151 0 14'37.059 "W Slot Local N (ft) Local E (ft) Grid East (USft) Grid North (USft) Latitude Longitude KBU42 -6X - 542.01 - 1034.92 1414892.431 2361232.740 60 °27'26.850 "N 151°14'57.696"W Comment As -built Survey provided 26- Feb -09 Glacier #1 (RKB) to Mud line (Facility: Pad 41 -7) 87ft Mean Sea Level to Mud line (Facility: Pad 41 -7) Oft Glacier #1 (RKB) to Mean Sea Level 87ft Well Profile Data Design Comment MD (ft) Inc ( Az ( TVD (ft) Local N (ft) Local E (ft) DLS ( °/100ft) VS (ft) RKB 87' 0.00 0.000 297.000 0.00 0.00 0.00 0.00 0.00 KOP 200.00 0.000 297.000 200.00 0.00 0.00 0.00 0.00 Begin Turn to Tgts 1166.67 29.000 297.000 1125.92 108.71 - 213.36 3.00 87.69 End of Build 2509.38 54.747 14.294 2178.85 842.26 - 380.42 4.00 801.78 Begin Angle Drop 5209.61 54.747 14.294 3737.38 2979.03 164.02 0.00 2981.00 End of Drop 7034.52 0.000 14.294 5297.00 3761.55 363.40 3.00 3779.06 Middle Beluga Tgt 7109.52 0.000 14.294 5372.00 3761.55 363.40 0.00 3779.06 TD 10294.52 0.000 14.294 8557.00 3761.55 363.40 0.00 3779.06 Targets Name MD (ft) TVD (ft) Local N (ft) Local E (ft) Grid East (USft) Grid North (USft) Latitude Longitude K8U42 -6X Middle Beluga(NAD 83) 25- Feb -09 7109.52 5372.00 3761.55 363.40 1415327.10 2364986.55 60 °28'03.894 "N 151 °14'50.448 "W K6U42 -6X Lower Beluga(NAD 83) 25- Feb -09 7819.52 6082.00 3761.55 363.40 1415327.10 2364986.55 60 °28'03.894 "N 151°14'50.448"W KBU42 -6X Tyonek(NAD 83) 25-Feb-09 8974.52 7237.00 3761.55 363.40 1415327.10 2364986.55 60 °28'03.894 "N 151 °14'50.448 "W KBU42 -6X Tyonek 84 -6(NAD 83) 25- Feb -09 10104.52 8367.00 3761.55 363.40 1415327.10 2364986.55 60 °28'03.894 "N 151 °14'50.448 "W KBU42 -6X TD(NAD 83) 25- Feb -09 10294.52 8557.00 3761.55 363.40 1415327.10 2364986.55 60 °28'03.894 "N 151°14'50.448"W Hole and Casing Sections Start End Start End Start Start End End Name MD (ft) MD (ft) Interval (ft) TVD (ft) TVD (ft) Local N (ft) Local E (ft) Local N (ft) Local E (ft) Wellbore 16" Open Hole 0.00 2509.38 2509.38 0.00 2178.85 0.00 0.00 842.26 - 380.42 K6U42 -6X 13 3/8" Casing Surface 0.00 2509.38 2509.38 0.00 2178.85 0.00 0.00 842.26 - 380.42 KBU42 -6X 12 1/4" Open Hole 2509.38 7084.52 4575.14 2178.85 5347.00 842.26 - 380.42 3761.55 363.40 KBU42 -6X 9 5/8" Casing Intermediate 0.00 7084.52 7084.52 0.00 5347.00 0.00 0.00 3761.55 363.40 KBU42 -6X 8 1/2" Open Hole 7084.52 10294.52 3210.00 5347.00 NA 3761.55 363.40 NA NA KBU42 -6X 3 1/2" Casing Production 0.00 10294.51 10294.51 0.00 8556.99 0.00 0.00 3761.55 363.40 KBU42 -6X Bottom Hole Location MD (ft) Inc ( °) Az ( °) TVD (ft) Local N (ft) Local E (ft) Grid East (sry ft) Grid North (sry ft) Latitude Longitude 10294.52 0.000 14.294 8557.00 3761.55 363.40 1415327.10 2364986.55 60 °28'03.894 "N 151 014'50.448 "W oe/I AT H IV Oil C ®m p a BAKER Location: Cook Inlet, Alaska (Kenai Penninsula) Slot: KBU42 -6X nag Field: Kenai Gas Field (NAD83) Well: KBU42 -6X I NT:Q MARATHON Facility Pad 41 -7 Wellbore: KBU42 -6X i/� 1! riut reference wellpath is KBU42 -6X Version #4 True vertical depths are referenced to Glacier #1 (RKB) Grid System: NAD83 / TM Alaska State Plane, Zone 4 (5004), US feet Measured depths are referenced to Glacier #1 (RKB) North Reference: True north Glacier #1 (RKB) to Mean Sea Level: 87 feet Scale: True distance Mean Sea Level to Mud line (Facility: Pad 41 -7): 0 feet Depths are in feet Coordinates are in feet referenced to Slot Created by: jonethoh on 3/9/2009 -600 I 0 ' RKB 87' - KOP 600 3.00 ° /100ft 1200 Begin Turn to Tgts 4.00 ° /100ft 1800 End of Build 13 3/8" Csg Pt 2400 3000 3800 Begin Angle Drop N 4200 0 N 3- 00 ° /100ft a) U_ a) > 4800 a) 7 End of Drop Middle Beluga Tgt -II 9 5/8" Csg Pt 5400 KBU42 -6X Middle Beluga(NAD 83) 25- Feb -09 6000 Lower Beluga Tgt KBU42 -6X Lower Beluga(NAD 83) 25- Feb-09 6600 7200 Tyonek Tgt KBU42 -6X Tyonek(NAD 83) 25-Feb-09 7800 Tyonek 84 -6 Tgt 8400 KBU42-OX Tyonek 84 -6(NAD 83) 25- Feb -09 TD 3 1/2" Csg Pt KBU42 -6X TD(NAD 83) 25- Feb -09 • KBU42 -6X 9000 9600 -600 0 600 1200 1800 2400 3000 3600 4200 4800 Vertical Section (ft) Scale l inch =120Oft Azimuth 5.52° with reference 0.00 N, 0.00 E M MAR 0 Vial ATHON oil Company y�R L ocation: Cook Inlet, Alaska (Kenai Penninsula) Slot: KBU42 -6X UGhRES x� Field: Kenai Gas Field (NAD83) Well: KBU42 -6X ; R.+ ,Q MARATHON Facility: Pad 41 -7 Wellbore: KBU42 -6X Ili R Plot reference wellpath is KBU42 -6X Version #4 True vertical depths are referenced to Glacier #1 (RKB) Grid System: NAD83 / TM Alaska State Plane, Zone 4 (5004), US feet Measured depths are referenced to Glacier #1 (RKB) North Reference: True north Glacier #1 (RKB) to Mean Sea Level: 87 feet Scale: True distance Mean Sea Level to Mud line (Facility: Pad 41 -7): 0 feet Depths are in feet Coordinates are in feet referenced to Slot Created by: jonethoh on 3/9/2009 Scale inch Easting (ft) -1500 -1250 -1000 -750 -500 -250 0 250 500 750 1000 1250 1500 4000 — 1 I I I I I I I I I ,- 4000 i KBU42 -6X' KBU42 -6X TD(NAD 83) 25- Feb-09 KBU42 -6X Tyonek(NAD 83) 25- Feb -09 3 1/2" Csg Pt 9 5/8" Csg Pt 3750 — KBU42 -6X Tyonek 84 -6(NAD 83) 25- Feb -09 7 r , End of Drop — 3750 KBU42 -6X Lower Beluga(NAD 83) 25- Feb -09 KBU42 -6X Middle Beluga(NAD 83) 25- Feb -09 3500 — — 3500 3250 — — 3250 3000 — — 3000 Begin Angle Drop - 2750 — — 2750 2500 — — 2500 • 2250 ■ — 2250 Z O c 2000 — — 2000 _? Z. v co O 9 Z 1750 — — 1750 1500 — — 1500 1250 — — 1250 1000 — — 1000 O 13 " Cs Pt I P End 3/8 o Buil 750 — — 750 500 — — 500 250 — — 250 Begin Turn to Tgts , KBU42 - 6X ■ p 0 — S OP RKB 87' I I I I I I I I I 1 I I I -1500 -1250 -1000 -750 -500 -250 0 250 500 750 1000 1250 1500 Scale 1 Inch =500n Easting (ft) Planned Welipath Geographic Report Report Generated 3/10/2009 at 9:11:50 AM projection System NAD83 / TM Alaska State Plane, Zone 4 (5004), US feet •perator MARATHON Oil Company North Reference True • rea Cook Inlet, Alaska (Kenai Penninsula) I Scale 0.999958 field Kenai Gas Field (NAD83) Horizontal Reference Point Slot nullity Pad 41 -7 ertical Reference Point . Glacier #1 (RKB) lot KBU42 -6X MD Reference Point Glacier #1 (RKB) ell KBU42 -6X Field Vertical Reference Mean Sea Level Wellbore KBU42 -6X lacier #1 (RKB) to Facilit Vertical Datum 87.008 ellpath KBU42 -6X Version #4 lacier #1 IRKS) to Mean Sea Level 87.00 ft Wellbore Last Revised 02/25/2009 Facilit 0.00 ft Sidetrack from (none) Section On In X E 0.00 ft User Jonethoh Section Oriain Y N 0.00 ft Calculation method Minimum curvature Section Azimuth 5.52 Local North Local East Grid East Grid North Latitude I on(hudc [ft] [ft] [USS) (USftj Slot Location - 542.01 - 1034.92 1414892.43 2361232.74 60 °2726.850 "N 151°14'57 696"W Facility Reference Pt VD f om"�• ' , �fl ;, v,i 1410937.15 2361824.52 60 °2731.931 "N 151 °16'16.783 "W ' ,',' :: 1415937.35 2361755.09 60°27'32.188 "N 151 °14'37.059 "W Field NAD 83 coordinates are converted to NAD 27 using Corpscon 6.0.1 (US Arm Cor "s of En •ineers - al MD Inclination Azimuth TVD Fid Ref North East Grid East Grid North Lataude I onnnudo DLS Tooltuce Build Rate Turn Rate Vert Sect Comments [ft] [°] [°] [ft] [ft] [ft] [ft] [ft] [ft] [ft] (It] -_. (')100[1] (°� ['/loofa - '(. i - /105it] ___ in] _ -_ 0.00 0.00 297.00 0.00 -87.00 0.00 0.00 1414892.43 2361232.74 274872.28 _ 2361471.29 60 °2726.850 "N 151 °14'57.696"W 0.00 0.00 0.00 0.00 0.00 100.00 0.00 297.00 100.00 13.00 0.00 0.00 1414892,43 2361232.74 274872.28 2361471.29 60 °2726.850 "N 151 °1457.696"W 0.00 0.00 0.00 0.00 0.00 200.00 0.00 297.00 200.00 113.00 0.00 0.00 1414892.43 2361232.74 274872.28 2361471.29 60 °27'26.850 "N 151 °1457.696 "W 0.00 -63.00 0.00 0.00 0.00 300.00 3.00 297.00 299.95 212.95 1.19 -2.33 1414890.12 2361233.97 274869.97 2361472.52 60 °2726.861 "N 151 °1457.743 "W 3.00 0.00 3.00 0.00 0.96 400.00 6.00 297.00 399.63 312.63 4.75 -9.32 1414883.20 2361237.67 274863.05 2361476.22 60 °27'26.897 "N 151 °14'57.882 "W 3.00 0.00 3.00 0.00 3.83 500.00 9.00 297.00 498.77 411.77 10.67 -20.95 1414871.69 2361243.81 274851.54 2361482.36 60 °2726.955 "N 151 °14'58.114 "W 3.00 0.00 3.00 0.00 8.61 600.00 12.00 297.00 597.08 510.08 18.95 -37.19 1414855.61 2361252.39 274835.46 2361490.94 60 ° 27'27.036 "N 151 °14'58.438 "W 3.00 0.00 3.00 0.00 15.28 700.00 15.00 297.00 694.31 607.31 29.54 -57.98 1414835.02 2361263.38 274814.87 2361501.93 � 60 °27'27.141 "N 151 ° 14'58.852 "W 3.00 0.00 3.00 0.00 23.83 800.00 18.00 297.00 790.18 703.18 42.44 -83.29 1414809.97 2361276.75 274789.82 2361515.31 60 °2727.268 "N 151 °14'59.357 "W 3.00 0.00 3.00 0.00 34.23 900.00 21.00 297.00 884.43 797.43 57.59 - 113.03 1414780.52 2361292.46 274760.37 2361531.02 60 °2727.417 "N 151 °1459.950"W 3.00 0.00 3.00 0.00 46.45 1000.00 24.00 297.00 976.81 889.81 74.96 _ - 147.12 1414748.77 _ 2361310.48 274726.62 2361549.04 60 °27'27.588 "N 151 °15'00.630 "W 3.00 0.00 3.00 0.00 60.47 1100.00 27.00 297.00 1067.06 980.06 94.50 - 185.47 1414708.79 2361330.74 274688.64 2361569.30 60 °27'27.780 "N 151 °15'01.395"W 3.00 0.00 3.00 0.00 76.23 1166.67 29.00 297.00 1125.92 1038.92 108.71 - 213.36 1414681.18 2361345.47 274661.03 2361584.03 60 °27'27.920 "N 151 °15'01.951"W 3.00 98.76 3.00 0.00 87.69 1200.00 28.82 299.73 1155.10 1068.10 116.37 - 227.54 1414667.15 2361353.40 274647.00 2361591.96 60 °2727.996 "N 151 °15'02.233'W 4.00 96.37 -0.53 8.20 93.95 1300.00 28,63 308.05 1242.82 1155.82 143.10 - 267.35 1414627.85 2361380.88 274607.70 _ 2361619.44 60 °2728.259 "N 151 1553.027"W 4.00 89.07 -0.19 8.32 116.73 1400.00 28.95 316.34 1330.49 1243.49 175.39 - 302.95 1414592.88 2361413.84 274572.73 2361652.40 60 °2728.577"N 151 15'03.737"W 4.00 81.81 0.32 8.28 145.45 1500.00 29.77 324.33 1417.68 1330.68 213.08 - 334.15 1414562.40 2361452.12 _ 274542.25 2361690.68 60 °2728.948 "N 151 15'04.359 "W 4.00 74.83 0.81 7.99 179.97 1600.00 31.03 331.84 1503.97 1416.97 255.99 - 360.80 1414536.57 2361495.52 274516.42 2361734.08 60 °2729.371 "N 151 15'04.891"W 4.00 68.36 1.27 7.50 220.11 1700.00 32.70 338.73 1588.92 1501.92 303.90 - 382.77 1414515.51 2361543.83 274495.36 2361782.39 60 °2729.843 "N 151 1555.329 "W 4,00 62.50 1.67 6.89 265.68 1800.00 34.71 344.97 1672.14 1585.14 356.58 - 399.96 1414499.33 2361596.83 274479.18 2361835.39 60 °27'30.361 "N 1511555.672 "W 4.00 57.31- 2.01 6.24 316.47 1900.00 37.00 350.57 1753.21 1666.21 413.78 - 412.28 1414488.09 2361654.25 274467.94 2361892.80 60 °2730.925 "N 151 15'05.917 "W 4.00 52.77 2.29 5.60 372.22 2000.00 39.53 355.57 1831.74 1744.74 475.22 - 419.67 _ 1414481.87 2361715.81 - 274461.72 2361954.36 60 °27'31.530 "N 151 °15'06.065"W 4.00 48.84 2.53 5.01 432.66 2100.00 42.25 0.05 1907.35 1820.35 540.60 - 422.10 -- 1414480.68 2361781.22 274460.53 2362019.77 60 °27'32.174 "N 151 °15'06.113'W 4.00 45.45 2.72 4.48 497.50 2200.00 45.13 4.07 1979.66 1892.66 609.59 - 419.55 1414484.54 2361850.15 274464.39 2362088.70 60 °2732.853 "N 151 15'06.063 "W 4.00 42.54 2.88 4.02 566.42 2300.00 48.14 7.71 2048.33 1961.33 681.87 - 412.04 1414493.42 2361922.27 274473.27 2362160.82 60 °2733.565 "N 151 15'05.913 "W 4.00 40.04 3.01 3.63 639.08 • 2400.00 51.25 11.00 2113.02 2026.02 757.07 - 399.59 1414507.29 2361997.22 274487.14 2362235.76 60 °2734.305 "N 151 15'05.665 "W 4.00 37.91 3.11 3.30 715.14 2500.00 54.44 14.02 2173.42 2086.42 834.85 - 382.29 1414526.07 2362074.65 274505.93 2362313.19 60 °2725.071 "N 151 °15'05.320"W 4.00 36.08 3.20 3.02 794.22 2509.38 54.75 14.29 2178.85 2091.85 842.26 - 380.42 1414528.08 2362082.03 274507.94 _ 2362320.57 60 °2735.144 "N 151°1555.282"W 4.00 35.93 3.24 2.88 801.78 13 3/8" Csg Pt 2509.38 54.75 14.29 2178.85 2091.85 842.26 - 380.42 1414528.08 2362082.03 274507.94 2362320.57 60 °2735.144 "N 151 1555.282W 4.00 0.00 3.24 0.00 801.78 2600.00 54.75 14.29 2231.16 2144.16 913.97 - 362.15 1414547.70 2362153.37 274527.56 2362391.91 60 ° 2735.851 "N 151 °15'04.918 "W 0.00 0.00 0.00 0.00 874.91 2700.00 54.75 14.29 2288.87 2201.87 993.10 - 341.98 1414569.36 2362232.11 274549.22 2362470.65 60 °2736.630 "N 151 °15'04.516 "W 0.00 0.00 0.00 0.00 955.62 2800.00 54.75 14.29 2346.59 2259.59 1072.24 - 321.82 1414591.02 2362310.84 274570.88 2362549.37 60 °2737.409 "N 151 °15'04.114"W 0.00 0.00 0.00 0.00 1036.32 2900.00 54.75 14.29 2404.31 2317.31 1151.37 - 301.66 1414612.68 2362389.57 274592.54 2362628.10 60 °2738.189 "N 151 15'03.712 "W 0.00 0.00 0.00 0.00 1117.03 3000.00 54.75 14.29 2462.03 2375.03 1230.50 - 281.50 1414634.34 2362468.31 274614.20 2362706.84 60 °2738.968 "N 151 °1553.310 "W 0.00 0.00 0.00 0.00 1197.73 3100.00 54.75 14.29 2519.75 2432.75 1309.64 - 261.33 1414656.00 2362547.04 274635.86 2362785.57 60 ° 2739.747 "N 151 °15'02.908 "W 0.00 0.00 0.00 0.00 1278.44 3200.00 54.75 14.29 2577.47 2490.47 1388.77 - 241.17 1414677.66 2362625.77 274657.52 2362864.29 60 °2740.527 "N 151 °15'02.506 "W 0.00 0.00 0.00 0.00 1359.14 3300.00 54.75 14.29 2635.19 2548.19 1467.90 - 221.01 1414699.32 2362704.51 274679.19 2362943.03 60 ° 2741.306 "N 151 °1552.104"W 0.00 0.00 0.00 0.00 1439.85 . 3400.00 54.75 14.29 2692.90 2605.90 1547.03 - 200.85 1414720.98 2362783.24 274700.85 2363021.76 60 °2742.085 "N 151 °1551.702 "W 0.00 0.00 0.00 0.00 1520.55 3500.00 54.75 14.29 2750.62 2663.62 1626.17 - 180.68 1414742.64 2362861.97 274722.51 2363100.49 60 °2742.864 "N 151 15'01.300 "W 0.00 . 0.00 0.00 0.00 1601.26 3600.00 54.75 14.29 2808.34 2721.34 1705.30 - 160.52 1414764.29 2362940.70 274744.16 2363179.21 60 °2743.644 "N 151 °15'00.897 "W 0.00 0.00 0.00 0.00 1681.96 3700.00 54.75 14.29 2866.06 2779.06 1784.43 - 140.36 1414785.95 2363019.44 274765.82 2363257.95 60 °27'44.423 "N 151 15'00.495"W 0.00 0.00 0.00 0.00 1762.67 3800.00 54.75 14.29 2923.78 2836.78 1863.57 - 120.20 1414807.61 2363098.17 274787.48 2363336.68 60 °27'45.202 "N 151 15'00.093'W 0.00 0.00 0.00 0.00 1843.37 3900.00 54.75 14.29 2981.50 2894.50 1942.70 - 100.03 1414829.27 2363176.90 274809.14 2363415.41 60 °2745.982 "N 151 °14'59.691"W 0.00 0.00 0.00 0.00 1924.08 4000.00 54.75 1429 3039.22 2952.22 2021.83 -79.87 1414850.93 2363255.64 274830.80 2363494.14 60 °27'46.761 "N 151 1459.289'W 0.00 0.00 0.00 0.00 2004.78 4100.00 54.75 14.29 3096.93 3009.93 2100.97 -59.71 1414872.59 2363334.37 274852.46 2363572.87 60 °2747.540 "N 151 1458.887"W 0.00 0.00 0.00 0.00 2085.49 4200.00 54.75 14.29 3154.65 3067.65 2180.10 -39.55 1414894.25 2363413.10 274874.13 2363651.60 60 °2748.320 "N 151 14'58.485'W 0.00 0.00 0.00 0.00 2166.19 4300.00 54.75 14.29 3212.37 3125.37 2259.23 -19.38 1414915.91 2363491.83 274895.79 2363730.32 60 °2749.099 "N 151 1458.083"W 0.00 0.00 0.00 0.00 2246.90 4400.00 54.75 14.29 3270.09 3183.09 2338.37 0.78 1414937.57 2363570.57 274917.45 2363809.06 60 °2749.878 "N 151 14'57.681 "W 0.00 0.00 0.00 0.00 2327.60 4500.00 54.75 14.29 3327.81 3240.81 2417.50 20.94 1414959.23 2363649.30 274939.11 2363887.79 60 °27'50.658 "N 151 1457.279 "W 0.00 0.00 0.00 0.00 2408.31 4600.00 54.75 14.29 3385.53 3298.53 2496.63 41.10 1414980.89 . 2363728.03 274960.77 2363966.52 60 °2751.437 "N 151°1456.876'W 0.00 0.00 0.00 0.00 2489.01 4700.00 54.75 14.29 3443.24 3356.24 2575.76 61.27 - 1415002.55 2363806.77 274982.43 2364045.25 60 °2752.216 "N 151 °1456.474 "W 0.00 0.00 0.00 0.00 2569.72 Page 1 of 3 I Planned Welipath Geographic Report Report Geneeated 3/10/2009 at 9:11:50 AM *re_ ' stem NAD83 / TM Alaska State Plane, Zone 4 (5004), US feet Operator MARATHON Oil Company orth Reference True • rea Cook Inlet, Alaska (Kenai Penninsula) Scale - 0.999958 field Kenai Gas Field (NAD83) orizontal Reference Point Slot acility Pad 41 -7 ertical Reference Point _ Glacier #1 (RKB) -lot KBU42 -6X MD Reference Point Glacier #1 (RKB) ell KBU42 -6X ield Vertical Reference Mean Sea Level Wellbore KBU42 -6X I i r #1 RKB to Facilit Vertical Datum 87.00 ft Welipath KBU42 -6X Version #4 Glacier #1 (RKB) to Mean Sea Level 87.00 ft Wellbore Last Revised 02/25/2009 Facilit Vertical Datum to Mud Lino (Facility: 0.00 ft Sidetrack from (none) Section Ori, In X E 0.00 ft User Jonethoh S i °n Orir n Y N 0.00 ft Calculation method Minimum curvature Section Azimuth 5.52 Local North Local East Grid East Grid North Latitude Longitude [It] [ft] [USft] [USitj lot Locatioe - 542.01 - 1034.92 1414892.43 2361232.74 60 °27'26.850 "N 151 °14'57.696 "W Facility Reference Pt 'Ir[,":a''j , +.'.,./ t - 4'' " 1415937.35 236175809 60 °27'32.188"N 151 °14'37.059 "W Field Reference Pt ? 141093715 236182452 60 °27'31.931 "N 151 °1616.783 "W NAD 83 coordinates are converted to NAD 27 using , s. n 'OS , Corps of c ogoloo, i T • VD from MD Inclination Azimuth TVD Ftd Ref North East Grid East Grid North 1. titude Longvvle DLS ToolfncoBuild Rate Turn Rate Vert Sect Comments [ ] [ °] [°] [ft] [ft] [ft] [ft] [ft] [ft] [ft] [tt) V 4800.00 54.75 14.29 3500.96 3413.96 2654.90 81.43 _ 1415024.20 2363885.50 275004.08 2364123.98 60 °2T52.996 "N 151 °14'56.072 "W 0.0 0 0 0 0 0 . 0 0Ott] �I�OOtt] 00 0.00 2650. 50. 43 4900.00 54.75 14.29 3558.68 3471.68 2734.03 101.59 - 1415045.86 2363964.23 275025.74 2364202.71 _ 60 °2753.775 "N 151 °14'55.670"W 0.00 0.00 0.00 0.00 2731.13 5000.00 54.75 14.29 3616.40 3529.40 2813.16 121.76 1415067.52 2364042.96 275047.41 2364281.44 60 °27'54.554 "N 151 °14'55.268"W 0.00 0.00 0.00 0.00 2811.84 5100.00 54.75 14.29 3674.12 3587.12 2892.30 141.92 1415089.18 2364121.70 275069.07 2364360.17 60 °27'55.334 "N 151 °1454.866"W 0.00 0.00 0.00 0.00 2892.54 5200.00 54.75 14.29 3731.84 3644.84 2971.43 162.08 1415110.84 2364200.43 _ 275090.73 2364438.90 60 °27'56.113 "N 151 °14'54.463 "W 0.00 0.00 0.00 0.00 2973.25 5209.61 54.75 14.29 3737.38 3650.38 2979.03 164.02 1415112.92 2364208.00 275092.81 2364446.47 60 °27'56.188 "N 151 °14'54.425 "W 0.00 180.00 0.00 0.00 2981.00 5300.00 52.04 14.29 3791.28 3704.28 3049.34 181.93 1415132.17 _ 2364277.95 275112.06 2364516.42 60 °27'56.880 "N 151 °14'54.067"W 3.00 180.00 -3.00 0.00 3052.70 5400.00 49.04 14.29 3854.84 3767.84 3124.14 200.99 1415152.64 2364352.37 275132.53 _ 2364590.84 60 °27'57.617"N 1511453.687 "W 3.00 - 180.00 -3.00 0.00 3128.99 5500.00 46.04 14.29 3922.34 3835.34 3195.62 219.20 1415172.20 2364423.49 275152.09 2364661.95 60 °27'58.327N 151 °14'53.324 "W 3.00 180.00 -3.00 0.00 3201.89 5600.00 43.04 14.29 3993.61 3906.61 3263.58 236.52 1415190.80 2364491.10 275170.69 2364729.56 60 °2758.990"N 151 °1452.979 "W 3.00 180.00 -3.00 0.00 3271.20 5700.00 40.04 14.29 4068.46 3981.46 3327.83 252.89 1415208.39 2364555.02 275188.28 2384793.48 60 °27'59.623 "N 151 °14'52.652 "W 3.00 180.00 -3.00 0.00 3336.72 5800.00 37.04 14.29 4146.67 4059.67 3388.19 268.27 1415224.91 2364615.08 275204.80 2364853.54 60 °28'00.217"N 151 °14'52.345 "W 3.00 180.00 -3.00 0.00 3398.28 5900.00 34.04 14.29 4228.04 4141.04 3444.50 282.62 1415240.32 2364671.11 275220.21 2364909.57 60 °28'00.772 "N 151 °14'52.059 "W 3.00 180.00 -3.00 0.00 3455.72 6000.00 31.04 14.29 4312.34 4225.34 3496.62 295.89 1415254.59 _ 2364722.96 275234.49 2364961.42 60 °28'01.285 "N 1511451.794"W 3.00 180.00 -3.00 0.00 3508.86 6100.00 28.04 14.29 4399.33 4312.33 3544.38 308.06 _ 1415267.66 2364770.48 275247.56 2365008.93 60 °2801.755 "N 151 94'51.551 "W 3.00 180.00 -3.00 0.00 3557.58 6200.00 25.04 14.29 4488.79 4401.79 3587.67 319.09 1415279.51 2364813.55 275259.41 2365052.00 60 °28'02.182 "N 15114'51.331 "W 3.00 180.00 -3.00 0.00 3601.73 6300.00 22.04 14.29 4580.46 4493.46 3626.36 328.95 _ 1415290.10 2364852.05 275270.00 2365090.50 _60 °28'02.563 "N 151 °1451.135 "W 3.00 - 180.00 -3.00 0.00 3641.18 6400.00 19.04 14.29 4674.09 4587.09 3660.35 337.61 1415299.40 2364885.86 275279.30 2365124.31 _ 60 °28'02.897 "N 15114'50.962"W 3.00 180.00 -3.00 0.00 3675.85 8500.00 ' 16.04 14.29 4769.44 4682.44 3689.54 345.05 1415307.39 2364914.91 275287.29 2365153.36 60 ° 28'03.185 "N 151 °14'50.814"W 3.00 - 180.00 -3.00 0.00 3705.62 6600.00 13.04 14.29 4866.22 4779.22 3713.86 351.25 ' 141531405 2364939.10 275293.95 2385177.55 60 °28'03.424 "N 1511450.690"W 3.00 180.00 -3,00 0.00 3730.42 6700.00 10.04 14.29 4964.19 4877.19 3733.23 356.18 1415319.35 2364958.38 275299.25 2385196.83 60 °28'03.615 "N 1511450.592'W 3.00 180.00 -3.00 0.00 3750.18 6800.00 7.04 14.29 5063.07 4976.07 3747.62 359.85 1415323.29 2364972.69 275303.19 2365211.14 60 °28'03.757'N 15114'50.518"W 3.00 180.00 -3.00 0.00 3764.85 6900.00 4.04 14.29 5162.60 5075.60 3756.96 362.23 1415325.85 2364981.99 _ 275305.75 2365220.44 60 °28'03.849 "N 15114'50.477W 3.00 180.00 -3.00 0.00 3774.38 ' 7000.00 1.04 1429 5262.49 5175.49 3761.25 363.32 1415327.02 2364986.25 _ 275306.92 2365224.70 60 °28'03.891 "N 1511450.449"W 3.00 180.00 -3.00 0.00 3778.75 7034.52 0.00 14.29 5297.00 5210.00 3761.55 363.40 1415327.10 2364986.55 275307.00 2365225.00 60 °28'03.894"N 15114'50.448 "W 3.00 0.00 -3.00 0.00 3779.06 7084.52 0.00 14.29 5347.00 5260.00 3761.55 363.40 1415327.10 2364986.55 ' 275307.00 2365225.00 60 °28'03.894 "N 151°1450.448"W 0.00 0.00 0.00 0.00 3779.06 9 5/8" Csq Pt 7100.00 0.00 14.29 5362.48 5275.48 3761.55 363.40 1415327.10 2364986.55 275307.00 2365225.00 60 °28'03.894 "N 151 °14'50.448 "W 0.00 0.00 0.00 0.00 3779.06 • 7109.52 0.00 14.29 5372.00 5285.00 3761.55 363.40 1415327.10 2364986.55 275307.00 2385225.00 60 °28'03.894 "N 151 °14'50.448"W 0.00 0.00 0.00 0.00 3779.06 7200.00 0.00 14.29 5462.48 5375.48 3761.55 _ 363.40 1415327.10 2364986.55 _ 275307.00 2365225.00 60 ° 2883.894 "N 151 1450.448 "W 0.00 0.00 0.00 0.00 3779.06 7300.00 0.00 14.29 5562.48 5475.48 3761.55 363.40 1415327.10 2364986.55 275307.00 2365225.00 60 °28'03.894 "N 1571450.448 "W 0.00 0.00 0.00 0.00 3779.06 7400.00 0.00 14.29 5662.48 5575.48 3761.55 363.40 _ 1415327.10 2364986.55 275307.00 2365225.00 60 °28'03.894 "N 15114'50.448 "W 0.00 0.00 0.00 0.00 3779.06 7500.00 0.00 14.29 5762.48 5675.48 3761.55 363.40 1415327.10 2364986.55 275307.00 2365225.00 60 °28'03.894 "N 15114'50.448 "W 0.00 0.00 0.00 0.00 3779.06 7600.00 0.00 14.29 5862.48 5775.48 3761.55 363.40 1415327.10 2364986.55 275307.00 2365225.00 60 ° 28'03.894 "N 151 °14'50.448"W 0.00 0.00 0.00 0.00 3779.06 7700.00 0.00 14.29 5962.48 5875.48 3761.55 363.40 1415327.10 2364986.55 275307.00 2365225.00 _ 60 °2803.894 "N 1511450.448"W 0.00 0.00 0.00 0.00 3779.06 7800.00 0.00 1429 6062.48 5975.48 3761.55 363.40 1415327.10 2364986.55 275307.00 2365225.00 60 °28'03.894 "N 1511450.448"W 0.00 0.00 0.00 0.00 3779.06 7819.52 0.00 14.29 6082.00 5995.00 3761.55 _ 363.40 1415327.10 2364986.55 275307.00 2385225.00 60 °28'03.894 "N 1571450.448"W 0.00 0.00 0.00 0.00 3779.06 Lower Beluga Tgt 7900.00 0.00 14.29 6162.48 6075.48 3761.55 363.40 1415327.10 2364986.55 _ 275307.00 2385225.00 60 °28'03.894 "N 1511450.448"W 0.00 0.00 0.00 0.00 3779.06 8000.00 0.00 1429 6262.48 6175.48 3761.55 363.40 1415327.10 2364986.55 _ 275307.00 2365225.00 60 °28'03.894 "N 151°1450.448"W 0.00 0.00 0.00 0.00 3779.06 8100.00 0.00 1429 6362.48 6275.48 3761.55 363.40 1415327.10 2364986.55 275307.00 2365225.00 60 °28'03.894 "N 151°1450.448"W 0.00 0.00 0.00 0.00 3779.06 8200.00 0.00 14.29 6462.48 6375.48 3761.55 363.40 _ 1415327.10 _ 2364986.55 275307.00 2385225.00 60 °28'03.894 "N 1511450.448 "W 0.00 0.00 0.00 0.00 3779.06 8300.00 0.00 1429 6562.48 6475.48 3761.55 363.40 _ 1415327.10 2364986.55 _ 275307.00 _ 2385225.00 60 °28'03.894 "N 15114'50.448 "W 0.00 0.00 0.00 0.00 3779.06 8400.00 0.00 1429 6662.48 6575.48 3761.55 363.40 1415327.10 2364986.55 275307.00 2365225.00 60 ° 28'03.894 "N 151 °1450.448 "W 0.00 0.00 0.00 0.00 3779.06 8500.00 0.00 14.29 6762.48 6675.48 3761.55 363.40 1415327.10 2364986.55 275307.00 2365225.00 60 °28'03.89 151 °14'50.448'W 0.00 0.00 0.00 0.00 3779.06 8600.00 0.00 i 14.29 6862.48 6775.48 3761.55 363.40 1415327.10 2364986.55 275307.00 2365225.00 60 °28'03.894"N 1511450.448 "W 0.00 0.00 0.00 0.00 3779.06 8700.00 0.00 14.29 6962.48 6875.48 3761.55 363.40 _ 1415327.10 2364986.55 275307.00 2365225.00 i 60 °28'03.894 "N 1511450.448"W 0.00 0.00 0.00 0.00 3779.06 8800.00 0.00 14.29 7062.48 6975.48 3761.55 363.40 1415327.10 2364986.55 275307.00 __ 2365225.00 60 °28'03.894 "N 151 14'50.448 "W 0.00 0.00 0.00 0.00 3779.06 8900.00 0.00 14.29 7162.48 7075.48 3761.55 363.40 1415327.10 2364986.55 275307.00 2365225.00 60 °28'03.894 "N 151 14'50.448 "W 0.00 0.00 0.00 0.00 3779.06 8974.52 0.00 1429 7237.00 7150.00 3761.55 363.40 1415327.10 2364986.55 275307.00 2365225.00 60 °28'03.894 "N 1511450.448 "W 0.00 0.00 0.00 0.00 3779.06 Tyonek Tgt 9000.00 0.00 1429 7262.48 7175.48 3761.55 363.40 1415327.10 2364986.55 275307.00 2365225.00 60 °28'03.894 "N 151 °14'50.448"W 0.00 0.00 0.00 0.00 3779.06 9100.00 0.00 14,29 7362.48 7275.48 3761.55 363.40 1415327.10 2364986.55 275307.00 2365225.00 60 °28'03.894 "N 15114'50.448 "W 0.00 0.00 0.00 0.00 3779.06 9200.00 0.00 1429 7462.48 7375.48 3761.55 363.40 1415327.10 2364986.55 275307.00 2365225.00 60 °28'03.894 "N _1511450.448 "W 0.00 0.00 0.00 0.00 3779.06 . Page 2 of 3 Planned Wellpath Geographic Report Report Generated 3/10/2009 at 9:11:50 AM Pro'ection S NAD83 / TM Alaska State Plane, Zone 4 (5004), US feet Operator MARATHON Oil Company North Reference True ,ea Cook Inlet, Alaska (Kenai Penninsula) Scale 0.999958 field Kenai Gas Field (NAD83) Horizontal Reference Point Slot acility Pad 41 -7 ertical Reference Point Glacier #1 (RKB) -lot KBU42 -6X MD Reference Point Glacier #1 (RKB) ell KBU42 -6X Field Vertical Reference Mean Sea Level Welibore KBU42 -6X Glacier #1 (RKB) to Facility Vertical Datum 87.00 ft Wellpath KBU42 -6X Version #4 - Wellbore Last Revised 02/25/2009 - _ Glacier #1 (RKB) to Mean Sea Level 87.00 ft (faith 0.00 ft Sidetrack from (none)i .. E 0.00 ft User Jonethoh Calculation method Minimum curvature Section Azimuth 5. uth 5.5 2 ft 2° - -- .1111MIMMEMOMIll Local North Local East Grid East Grld North Latlhidr. Longitude lot Location 542.01 - 1034.92 1414892.43 2361232.74 60°27'26.850"N 151 Facility Reference Pt 1415937.35 2361755.09 60 °2732.188 "N 151 °14'37.059 'W Field Reference Pt 1410937.15 2361824.52 60 °27'31.931 "N 151 °16'16.783'W " NAD 83 coordinates are converted to NAD 27 using C' . r , P p, V3 cn , ..7. from MD Inclination Azimuth TVD Fld Ref North East Grid East Grid North Latitude Longitude DLS Toolface Build Rate Turn Rate Vert Sect Comments [ft) [°1 [°1 [ft] [ft) [ft] [ft] [ft] [ft) [ft] Itt a 1 t lfoort] [ °)" _ moottj lotirtj [ft] 9300.00 0.00 11111LEMEECEIMMOMIll 3761.55 363.40 1415327.10 2364986.55 275307.00 2365225.00 60 °28'03.894 "N 151 °14'50.448"W 0.00 0.00 0.00 0.00 3779.06 9400.00 0.00 14.29 7662.48 7575.48 3761.55 363.40 1415327.10 2364986.55 275307.00 2365225.00 60 °28'03.894 "N 151 °14'50.448 "W 0.00 0.00 0.00 0.00 3779.06 9500.00 0.00 14.29 7762.48 7675.48 3761.55 363.40 1415327.10 2364986.55 275307.00 2365225.00 60 °28'03.894 "N 151 °14'50.448'W 0.00 0.00 0.00 0.00 3779.06 9600.00 0.00 14.29 7862.48 7775.48 3761.55 363.40 1415327.10 2364986.55 275307.00 2365225.00 60 °28'03.894 "N 15194'50.448 "W 0.00 0.00 0.00 0.00 3779.06 9700.00 0.00 14.29 7962.48 7875.48 3761.55 363.40 1415327.10 2364986.55 275307.00 _ 2365225.00 60 °28'03.894 "N 151 °14'50.448 "W 0.00 0.00 0.00 0.00 3779.06 9800.00 0.00 14.29 8062.48 7975.48 3761.55 363.40 1415327.10 2364986.55 275307.00 2365225.00 60 ° 28'03.894 "N 15194'50.448"W 0.00 0.00 0.00 0.00 3779.06 9900.00 0.00 14.29 8162.48 8075.48 3761.55 363.40 1415327.10 2364986.55 _ 275307.00 2365225.00 60 ° 28'03.894 "N 15194'50.448"W 0.00 0.00 0.00 0.00 3779.06 10000.00 0.00 14.29 8262.48 8175.48 3761.55 363.40 1415327.10 2364986.55 275307.00 2365225.00 60 ° 2863.894 "N 151 94'50.448 "W 0.00 0.00 0.00 0.00 3779.06 10100.00 0.00 14.29 8362.48 8275.48 3761.55 363.40 1415327.10 2364986.55 275307.00 2365225.00 60 ° 2863.894 "N 151 ° 14'50.448"W 0.00 0.00 0.00 0.00 3779.06 10104.52 0.00 14.29 8367.00 8280.00 3761.55 363.40 1415327.10 2364986.55 275307.00 2365225.00 60 °28'03.894 "N 151 ° 14'50.448 "W 0.00 0.00 0.00 0.00 3779.06 Tyonek 84-6 Tgt 10200.00 0.00 14.29 8462.48 8375.48 3761.55 363.40 1415327.10 2364986.55 275307.00 2365225.00 60 °28'03.894 "N 151 °14'50.448 "W 0.00 0.00 0.00 0.00 3779.06 10294.52 0.00 14.29 8557.00 8470.00 3761.55 363.40 1415327.10 2364986.55 275307.00 2365225.00 60 ° 28'03.894 "N 151 °14'50.448"W 0.00 0.00 0.00 0.00 3779.06 31 /2 "Csq Pt • Page 3 of 3 • • Nag Planned Wellpath Report BAKER KBU42 -6X Version #4 HUGHES MARATHON Page 1 of 5 INTEQ REFERENCE WELLPATH IDENTIFICATION Operator MARATHON Oil Company Slot KBU42 -6X Area Cook Inlet, Alaska (Kenai Penninsula) Well KBU42 -6X Field Kenai Gas Field (NAD83) Wellbore KBU42 -6X Facility Pad 41 -7 REPORT SETUP INFORMATION Projection System NAD83 / TM Alaska State Plane, Zone 4 (5004), US feet Software System WellArchitect® 2.0 North Reference True User Ulricard Scale 0.999958 Report Generated 3/9/2009 at 2:00:38 PM Convergence at slot 1.09° West Database /Source file WA_Anchorage /KBU42- 6X.xml WELLPATH LOCATION Local coordinates Grid coordinates Geographic coordinates . North[ft] East[ft] Easting[USft] Northing[USft] Latitude Longitude Slot Location - 542.01 - 1034.92 1414892.43 2361232.74 60 °27'26.850 "N 151 °14'57.696 "W Facility Reference Pt 1415937.35 2361755.09 60 °27'32.188 "N 151 °14'37.059 "W Field Reference Pt 1410937.15 2361824.52 60 °27'31.931 "N 151 °16'16.783 "W WELLPATH DATUM Calculation method Minimum curvature Glacier #1 (RKB) to Facility Vertical Datum 87.00ft Horizontal Reference Pt Slot Glacier #1 (RKB) to Mean Sea Level 87.00ft Vertical Reference Pt Glacier #1 (RKB) Facility Vertical Datum to Mud Line (Facility) 0.00ft MD Reference Pt Glacier #1 (RKB) Section Origin N 0.00, E 0.00 ft Field Vertical Reference Mean Sea Level Section Azimuth 5.52° • . • Mil Ni Planned Wellpath Report BAKER KBU42 -6X Version #4 HUGHES MARATHON Page 2 of 5 INTEQ REFERENCE WELLPATH IDENTIFICATION Operator MARATHON Oil Company Slot KBU42 -6X Area Cook Inlet, Alaska (Kenai Penninsula) Well KBU42 -6X Field Kenai Gas Field (NAD83) Wellbore KBU42 -6X . Facility Pad 41 -7 WELLPATH DATA (114 stations) t = interpolated /extrapolated station MD Inclination Azimuth TVD Vert Sect North East Grid East Grid North DLS Build Rate Turn Rate Comments [ft] 1 [ °] [ft] [ft] [ft] [ft] [sry ft] [sry ft] [ ° /100ft] [ ° /100ft] [ ° /100ft] 0.00 0.000 297.000 0.00 0.00 0.00 0.00 1414892.43 2361232.74 0.00 0.00 0.00 RKB 87' 100.001 0.000 297.000 100.00 0.00 0.00 0.00 1414892.43 2361232.74 0.00 0.00 0.00 200.00 0.000 297.000 200.00 0.00 0.00 0.00 1414892.43 2361232.74 0.00 0.00 0.00 KOP 300.001 3.000 297.000 299.95 0.96 1.19 -2.33 1414890.12 2361233.97 3.00 3.00 0.00 400.001 6.000 297.000 399.63 3.83 4.75 -9.32 1414883.20 2361237.67 3.00 3.00 0.00 500.00f 9.000 297.000 498.77 8.61 10.67 -20.95 1414871.69 2361243.81 3.00 3.00 0.00 600.001 12.000 297.000 597.08 15.28 18.95 -37.19 1414855.61 2361252.39 3.00 3.00 0.00 700.001 15.000 297.000 694.31 23.83 29.54 -57.98 1414835.02 2361263.38 3.00 3.00 0.00 800.001 18.000 297.000 790.18 34.23 42.44 -83.29 1414809.97 2361276.75 3.00 3.00 0.00 900.001 21.000 297.000 884.43 46.45 57.59 - 113.03 1414780.52 2361292.46 3.00 3.00 0.00 1000.001 24.000 297.000 976.81 60.47 74.96 - 147.12 1414746.77 2361310.48 3.00 3.00 0.00 1100.001 27.000 297.000 1067.06 76.23 94.50 -185.47 1414708.79 2361330.74 3.00 3.00 0.00 1166.67 29.000 297.000 1125.92 87.69 108.71 - 213.36 1414681.18 2361345.47 3.00 3.00 0.00 Begin Turn to Tgts 1200.001 28.824 299.734 1155.10 93.95 116.37 - 227.54 1414667.15 2361353.40 4.00 -0.53 8.20 1300.001 28.634 308.052 1242.82 116.73 143.10 - 267.35 1414627.85 2361380.88 4.00 -0.19 8.32 1400.001 28.953 316.336 1330.49 145.45 175.39 - 302.95 1414592.88 2361413.84 4.00 0.32 8.28 1500.001 29.765 324.330 1417.68 179.97 213.08 - 334.15 1414562.40 2361452.12 4.00 0.81 7.99 1600.001 31.030 331.835 1503.97 220.11 255.99 - 360.80 1414536.57 2361495.52 4.00 1.27 7.50 1700.001 32.696 338.729 1588.92 265.68 303.90 - 382.77 1414515.51 2361543.83 4.00 1.67 6.89 1800.001 34.705 344.968 1672.14 316.47 356.58 - 399.96 1414499.33 2361596.83 4.00 2.01 6.24 1900.001 36.999 350.566 1753.21 372.22 413.78 - 412.28 1414488.09 2361654.25 4.00 2.29 5.60 2000.001 39.529 355.573 1831.74 432.66 475.22 - 419.67 1414481.87 2361715.81 4.00 2.53 5.01 2100.001 42.252 0.052 1907.35 497.50 540.60 - 422.10 1414480.68 2361781.22 4.00 2.72 4.48 2200.001 45.131 4.074 1979.66 566.42 609.59 - 419.55 1414484.54 2361850.15 4.00 2.88 4.02 2300.001 48.137 7.705 2048.33 639.08 681.87 - 412.04 1414493.42 2361922.27 4.00 3.01 3.63 2400.001 51.248 11.004 2113.02 715.14 757.07 - 399.59 1414507.29 2361997.22 4.00 3.11 3.30 2500.001 54.444 14.024 2173.42 794.22 834.85 - 382.29 1414526.07 2362074.65 4.00 3.20 3.02 2509.38t 54.747 14.294 2178.85 801.78 842.26 - 380.42 1414528.08 2362082.03 4.00 3.24 2.8813 3/8" Csg Pt 2509.38 54.747 14.294 2178.85 801.78 842.26 - 380.42 1414528.08 2362082.03 4.00 3.24 0.00 End ofBuild 2600.001 54.747 14.294 2231.16 874.91 913.97 - 362.15 1414547.70 2362153.37 0.00 0.00 0.00 2700.001 54.747 14.294 2288.87 955.62 993.10 - 341.98 1414569.36 2362232.11 0.00 0.00 0.00 2800.001 54.747 14.294 2346.59 1036.32 1072.24 - 321.82 1414591.02 2362310.84 0.00 0.00 0.00 2900.001 54.747 14.294 2404.31 1117.03 1151.37 - 301.66 1414612.68 2362389.57 0.00 0.00 0.00 3000.001 54.747 14.294 2462.03 1197.73 1230.50 - 281.50 1414634.34 2362468.31 0.00 0.00 0.00 3100.001 54.747 14.294 2519.75 1278.44 1309.64 - 261.33 1414656.00 2362547.04 0.00 0.00 0.00 3200.001 54.747 14.294 2577.47 1359.14 1388.77 - 241.17 1414677.66 2362625.77 0.00 0.00 0.00 3300.001 54.747 14.294 2635.19 1439.85 1467.90 - 221.01 1414699.32 2362704.51 0.00 0.00 0.00 3400.001 54.747 14.294 2692.90 1520.55 1547.03 - 200.85 1414720.98 2362783.24 0.00 0.00 0.00 3500.001 54.747 14.294 2750.62 1601.26 1626.17 - 180.68 1414742.64 2362861.97 0.00 0.00 0.00 3600.001 54.747 14.294 2808.34 1681.96 1705.30 - 160.52 1414764.29 2362940.70 0.00 0.00 0.00 3700.001 54.747 14.294 2866.06 1762.67 1784.43 - 140.36 1414785.95 2363019.44 0.00 0.00 0.00 3800.001 54.747 14.294 2923.78 1843.37 1863.57 - 120.20 1414807.61 2363098.17 0.00 0.00 0.00 3900.001 54.747 14.294 2981.50 1924.08 1942.70 - 100.03 1414829.27 2363176.90 0.00 0.00 0.00 4000.001 54.747 14.294 3039.22 2004.78 2021.83 -79.87 1414850.93 2363255.64 0.00 0.00 0.00 4100.001 54.747 14.294 3096.93 2085.49 2100.97 -59.71 1414872.59 2363334.37 0.00 0.00 0.00 • • Mil Planned Wellpath Report BAKER Version #4 HUGHES MARATHON Page 3 of 5 INTEQ REFERENCE WELLPATH IDENTIFICATION Operator MARATHON Oil Company Slot KBU42 -6X Area Cook Inlet, Alaska (Kenai Penninsula) Well KBU42 -6X Field Kenai Gas Field (NAD83) Wellbore KBU42 -6X Facility Pad 41 -7 WELLPATH DATA (114 stations) ' = interpolated /extrapolated station MD Inclination Azimuth TVD Vert Sect North East Grid East Grid North DLS Build Rate Turn Rate Comments Iftl ] °] ]°] ]ft] MI ]ft] ]ft] ]sry ft] [sry ft] 1° /100ftI ] ° /100ft] ] ° /100ftl 4200.001 54.747 14.294 3154.65 2166.19 2180.10 -39.55 1414894.25 2363413.10 0.00 0.00 0.00 4300.001 54.747 14.294 3212.37 2246.90 2259.23 -19.38 1414915.91 2363491.83 0.00 0.00 0.00 4400.001 54.747 14.294 3270.09 2327.60 2338.37 0.78 1414937.57 2363570.57 0.00 0.00 0.00 4500.001 54.747 14.294 3327.81 2408.31 2417.50 20.94 1414959.23 2363649.30 0.00 0.00 0.00 4600.001 54.747 14.294 3385.53 2489.01 2496.63 41.10 1414980.89 2363728.03 0.00 0.00 0.00 4700.001 54.747 14.294 3443.24 2569.72 2575.76 61.27 1415002.55 2363806.77 0.00 0.00 0.00 4800.001 54.747 14.294 3500.96 2650.43 2654.90 81.43 1415024.20 2363885.50 0.00 0.00 0.00 4900.001 54.747 14.294 3558.68 2731.13 2734.03 101.59 1415045.86 2363964.23 0.00 0.00 0.00 5000.001 54.747 14.294 3616.40 2811.84 2813.16 121.76 1415067.52 2364042.96 0.00 0.00 0.00 5100.001 54.747 14.294 3674.12 2892.54 2892.30 141.92 1415089.18 2364121.70 0.00 0.00 0.00 5200.001 54.747 14.294 3731.84 2973.25 2971.43 162.08 1415110.84 2364200.43 0.00 0.00 0.00 5209.61 54.747 14.294 3737.38 2981.00 2979.03 164.02 1415112.92 2364208.00 0.00 0.00 0.00 Begin Angle Drop 5300.001 52.035 14.294 3791.28 3052.70 3049.34 181.93 1415132.17 2364277.95 3.00 -3.00 0.00 5400.001 49.035 14.294 3854.84 3128.99 3124.14 200.99 1415152.64 2364352.37 3.00 -3.00 0.00 5500.001 46.035 14.294 3922.34 3201.89 3195.62 219.20 1415172.20 2364423.49 3.00 -3.00 0.00 5600.001 43.035 14.294 3993.61 3271.20 3263.58 236.52 1415190.80 2364491.10 3.00 -3.00 0.00 5700.001 40.035 14.294 4068.40 3336.72 3327.83 252.89 1415208.39 2364555.02 3.00 -3.00 0.00 5800.001 37.035 14.294 4146.67 3398.28 3388.19 268.27 1415224.91 2364615.08 3.00 -3.00 0.00 5900.001 34.035 14.294 4228.04 3455.72 3444.50 282.62 1415240.32 2364671.11 3.00 -3.00 0.00 6000.001 31.035 14.294 4312.34 3508.86 3496.62 295.89 1415254.59 2364722.96 3.00 -3.00 0.00 6100.001 28.035 14.294 4399.33 3557.58 3544.38 308.06 1415267.66 2364770.48 3.00 -3.00 0.00 6200.001 25.035 14.294 4488.79 3601.73 3587.67 319.09 1415279.51 2364813.55 3.00 -3.00 0.00 6300.001 22.035 14.294 4580.46 3641.18 3626.36 328.95 1415290.10 2364852.05 3.00 -3.00 0.00 6400.001 19.035 14.294 4674.09 3675.85 3660.35 337.61 1415299.40 2364885.86 3.00 -3.00 0.00 6500.001 16.035 14.294 4769.44 3705.62 3689.54 345.05 1415307.39 2364914.91 3.00 -3.00 0.00 6600.001 13.035 14.294 4866.22 3730.42 3713.86 351.25 1415314.05 2364939.10 3.00 -3.00 0.00 6700.001 10.035 14.294 4964.19 3750.18 3733.23 356.18 1415319.35 2364958.38 3.00 -3.00 0.00 6800.001 7.035 14.294 5063.07 3764.85 3747.62 359.85 1415323.29 2364972.69 3.00 -3.00 0.00 6900.001 4.035 14.294 5162.60 3774.38 3756.96 362.23 1415325.85 2364981.99 3.00 -3.00 0.00 7000.001 1.035 14.294 5262.49 3778.75 3761.25 363.32 1415327.02 2364986.25 3.00 -3.00 0.00 7034.52 0.000 14.294 5297.00 3779.06 3761.55 363.40 1415327.10 2364986.55 3.00 -3.00 0.00 End of Drop 7084.521 0.000 14.294 5347.00 3779.06 3761.55 363.40 1415327.10 2364986.55 0.00 0.00 0.00 9 5/8" Csg Pt 7100.001 0.000 14.294 5362.48 3779.06 3761.55 363.40 1415327.10 2364986.55 0.00 0.00 0.00 7109.52 0.000 14.294 5372.001 3779.06 3761.55 363.40 1415327.10 2364986.55 0.00 0.00 0.00 Middle Beluga Tgt 7200.001 0.000 14.294 5462.48 3779.06 3761.55 363.40 1415327.10 2364986.55 0.00 0.00 0.00 7300.001 0.000 14.294 5562.48 3779.06 3761.55 363.40 1415327.10 2364986.55 0.00 0.00 0.00 7400.001 0.000 14.294 5662.48 3779.06 3761.55 363.40 1415327.10 2364986.55 0.00 0.00 0.00 7500.00t 0.000 14.294 5762.48 3779.06 3761.55 363.40 1415327.10 2364986.55 0.00 0.00 0.00 7600.00t 0.000 14.294 5862.48 3779.06 3761.55 363.40 1415327.10 2364986.55 0.00 0.00 0.00 7700.001 0.000 14.294 5962.48 3779.06 3761.55 363.40 1415327.10 2364986.55 0.00 0.00 0.00 7800.00t 0.000 14.294 6062.48 3779.06 3761.55 363.40 1415327.10 2364986.55 0.00 0.00 0.00 7819.521 0.000 14.294 6082.00 3779.06 3761.55 363.40 1415327.10 2364986.55 0.00 0.00 0.00 Lower Beluga Tgt 7900.001 0.000 14.294 6162.48 3779.06 3761.55 363.40 1415327.10 2364986.55 0.00 0.00 0.00 8000.001 0.000 14.294 6262.48 3779.06 3761.55 363.40 1415327.10 2364986.55 0.00 0.00 0.00 8100.001 0.000 14.294 6362.48 3779.06 3761.55 363.40 1415327.10 2364986.55 0.00 0.00 0.00 • • AM s-- Planned Wellpath Report �,R KBU42 -6X Version #4 HUGHES MARATHON Page 4 of 5 INTEQ REFERENCE WELLPATH IDENTIFICATION Operator MARATHON Oil Company Slot KBU42 -6X Area Cook Inlet, Alaska (Kenai Penninsula) Well KBU42 -6X Field Kenai Gas Field (NAD83) Wellbore KBU42 -6X Facility Pad 41 - WELLPATH DATA (114 stations) t = interpolated /extrapolated station , MD Inclination Azimuth TVD Vert Sect North East Grid East Grid North DLS Build Rate Turn Rate Comments ]ft] (°] ]°] IN ]ft] ]ft] ]ft] ]sry ft] lsry ft] ] ° /100ft] ] ° /100ft] ] ° /100ft] 8200.001 0.000 14.294 6462.48 3779.06 3761.55 363.40 1415327.10 2364986.55 0.00 0.00 0.00 8300.00t 0.000 14.294 6562.48 3779.06 3761.55 363.40 1415327.10 2364986.55 0.00 0.00 0.00 8400.00t 0.000 14.294 6662.48 3779.06 3761.55 363.40 1415327.10 2364986.55 0.00 0.00 0.00 8500.00t 0.000 14.294 6762.48 3779.06 3761.55 363.40 1415327.10 2364986.55 0.00 0.00 0.00 8600.00t 0.000 14.294 6862.48 3779.06 3761.55 363.40 1415327.10 2364986.55 0.00 0.00 0.00 8700.001 0.000 14.294 6962.48 3779.06 3761.55 363.40 1415327.10 2364986.55 0.00 0.00 0.00 8800.001 0.000 14.294 7062.48 3779.06 3761.55 363.40 1415327.10 2364986.55 0.00 0.00 0.00 8900.001 0.000 14.294 7162.48 3779.06 3761.55 363.40 1415327.10 2364986.55 0.00 0.00 0.00 . 8974.52t 0.000 14.294 7237.00 3779.06 3761.55 363.40 1415327.10 2364986.55 0.00 0.00 0.00 Tyonek Tgt 9000.00t 0.000 14.294 7262.48 3779.06 3761.55 363.40 1415327.10 2364986.55 0.00 0.00 0.00 9100.001 0.000 14.294 7362.48 3779.06 3761.55 363.40 1415327.10 2364986.55 0.00 0.00 0.00 9200.001 0.000 14.294 7462.48 3779.06 3761.55 363.40 1415327.10 2364986.55 0.00 0.00 0.00 9300.001 0.000 14.294 7562.48 3779.06 3761.55 363.40 1415327.10 2364986.55 0.00 0.00 0.00 9400.001 0.000 14.294 7662.48 3779.06 3761.55 363.40 1415327.10 2364986.55 0.00 0.00 0.00 9500.00t 0.000 14.294 7762.48 3779.06 3761.55 363.40 1415327.10 2364986.55 0.00 0.00 0.00 9600.001 0.000 14.294 7862.48 3779.06 3761.55 363.40 1415327.10 2364986.55 0.00 0.00 0.00 9700.001 0.000 14.294 7962.48 3779.06 3761.55 363.40 1415327.10 2364986.55 0.00 0.00 0.00 9800.001 0.000 14.294 8062.48 3779.06 3761.55 363.40 1415327.10 2364986.55 0.00 0.00 0.00 9900.001 0.000 14.294 8162.48 3779.06 3761.55 363.40 1415327.10 2364986.55 0.00 0.00 0.00 10000.00t 0.000 14.294 8262.48 3779.06 3761.55 363.40 1415327.10 2364986.55 0.00 0.00 0.00 10100.00t 0.000 14.294 8362.48 3779.06 3761.55 363.40 1415327.10 2364986.55 0.00 0.00 0.00 10104.52f 0.000 14.294 8367.00 3779.06 3761.55 363.40 1415327.10 2364986.55 0.00 0.00 0.00 Tyonek 84 - Tgt 10200.001 0.000 14.294 8462.48 3779.06 3761.55 363.40 1415327.10 2364986.55 0.00 0.00 0.00 10294.52 0.000 14.294 8557.00 3779.06 3761.55 363.40 1415327.10 2364986.55 0.00 0.00 0.00 TD; 3 1/2" Csg Pt HOLE & CASING SECTIONS Ref Wellbore: KBU42 - 6X Ref Wellpath: KBU42 - 6X Version #4 String/Diameter Start MD End MD Interval Start TVD End TVD Start N/S Start E/W End N/S End E/W [ft] [ft] [ft] [ft] [ft] [ft] [ft] [ft] [ft] 16in Open Hole 0.00 2509.38 2509.38 0.00 2178.85 0.00 0.00 842.26 - 380.42 13.375in Casing Surface 0.00 2509.38 2509.38 0.00 2178.85 0.00 0.00 842.26 - 380.42 12.25in Open Hole 2509.38 7084.52 4575.14 2178.85 5347.00 842.26 - 380.42 3761.55 363.40 9.625in Casing Intermediate 0.00 7084.52 7084.52 0.00 5347.00 0.00 0.00 3761.55 363.40 8.5in Open Hole 7084.52 10294.52 3210.00 5347.00 NA 3761.55 363.40 NA NA 3.5in Casing Production 0.00 10294.51 10294.51 0.00 8556.99 0.00 0.00 3761.55 363.40 • Planned Wellpath Report BAKER NSW KBU42 -6X Version #4 NUGNES MARATHON Page 5 of 5 INTEQ REFERENCE WELLPATH IDENTIFICATION Operator MARATHON Oil Company Slot KBU42 -6X Area Cook Inlet, Alaska (Kenai Penninsula) Well KBU42 -6X Field Kenai Gas Field (NAD83) Wellbore KBU42 -6X Facility Pad 41 -7 TARGETS Name MD TVD North East Grid East Grid North Latitude Longitude Shape [ft] [ft] [ft] [ft] [sry ft] [sry ft] 1) KBU42 -6X Middle Beluga 7109.52 _ 5372.00 3761.55 363.40 1415327.10 2364986.55 60 °28'03.894 "N 151 °14'50.448 "W circle (NAD 83) 25- Feb -09 KBU42 -6X Lower Beluga(NAD 16082.001 3761.551363.401 1415327.101 2364986.551 60 °28'03.894 "N1 151°14'50.448"W' circle 83) 25-Feb-09 KBU42 -6X Tyonek(NAD 83) 25- 17237.0013761.551363.401 1415327.101 2364986.551 60 °28'03.894 "N1 151 °14'50.448 "Wlcircle Feb -09 KBU42 -6X Tyonek 84 -6(NAD 18367.001 3761.551363.401 1415327.101 2364986.551 60 °28'03.894 "N1 151 0 14'50.448 "W1 circle 83) 25-Feb-09 KBU42 -6X TD(NAD 83) 25 -Feb- 1 8557.001 3761.551363.401 1415327.101 2364986.551 60 °28'03.894 "N1 151°14'50.448"W1 circle 09 SURVEY PROGRAM Ref Wellbore: KBU42 -6X Ref Wellpath: KBU42 -6X Version #4 Start MD End MD Positional Uncertainty Model Log Name /Comment Wellbore [ft] [ft] 0.00 7084.52 NaviTrak (Magcorrl) KBU42 -6X 7084.52 10294.52 NaviTrak (Magcorrl) KBU42 -6X • • MI M MARATHON Oil Company BAKER Cook Inlet, Alaska (Kenai Penninsula) Slot: KBU42 -6X �� Field: Kenai Gas Field (NAD83) Well: KBU42 -6X IN' 'E`[� MARATHON Facility: Pad 41 -7 Wellbore: KBU42 -6X YG Plot reference wellpath is KBU42 -6X Version #4 True vertical depths are referenced to Glacier #1 (RKB) Grid System: NAD83 / TM Alaska State Plane, Zone 4 (5004), US feet Measured depths are referenced to Glacier #1 (RKB) North Reference: True north Glacier #1 (RKB) to Mean Sea Level: 87 feet Scale: True distance Mean Sea Level to Mud line (Facility: Pad 41 -7): 0 feet Depths are in feet Coordinates are in feet referenced to Slot Created by: jonethoh on 3/9/2009 Seale, inch =,oah Easting (ft) -600 -550 -500 -450 -400 -350 -300 -250 -200 -150 -100 -50 0 50 1 1 1 1 • 1 1 1 1 1 1 1 *4> 1 :,` 1� ` �• . 700 — <3 ' � +m :; >. � J- . J 700 Ti- �i a o e 0 _ °° 650 ^^ ,1 , 3 0 1h 650 KBU34-6, �A 1400 ry ° ° o 2 � - 800 600 — 800 600 Q� 0 80� p lot #KBU43 -7 2,1 550 — slot #KBU12 -5 Slot • - : U41 -6 — 550 1100 1100 500 — 800 500 500 slot #KBU33 450 — — 450 1400 400 — slot #KDU 9 — 400 500 200 1700 o o ° o 350 — ! KBU41 -7X 800 350 z -C 1100 0 ° co z 300 ■ 1700 — 300 250 — 1, t . — 250 1 200 — 1400 — 200 . 1700 150 — — 150 2000 Begin Turn to Tgts . 1 , 100 100 — 2• -,,- 100 2000 50 — 1400 — ' 50 :rt 4JJ 500 0 — KOP — 0 KBU42 -6X RKB 87' x -50 — N .... — -50 m' , � � 3200 1 1 1 1 1 1 1 1 1 1 x 0. 17001 1 - -k' 1 -600 -550 -500 -450 -400 -350 -300 -250 -200 -150 I I -50 0 50 $tale 1 inch = 100 fl Easting (ft) • M MATHON Oil Company �► R� L ocation: Cook Inlet, Alaska (Kenai Penninsula) Slo KBU42 -6X HAIES Field: Kenai Gas Field (NAD83) Well: KBU42 -6X li' 1 L" Q MARATHON Facility: Pad 41 -7 Wellbore: KBU42 -6X Plot reference wellpath is KBU42 -6X Version #4 True vertical depths are referenced to Glacier #1 (RKB) Grid System: NAD83 / TM Alaska State Plane, Zone 4 (5004), US feet Measured depths are referenced to Glacier #1 (RKB) North Reference: True north Glacier #1 (RKB) to Mean Sea Level: 87 feet Scale: True distance Mean Sea Level to Mud line (Facility: Pad 41 -7): 0 feet Depths are in feet Coordinates are in feet referenced to Slot Created by: jonethoh on 3/9/2009 See n- aon Easting (ft) -600 -550 -500 -450 -400 -350 -300 -250 -200 -150 -100 -50 0 50 100 1 1 1 1 1 1 1 1 1 1 1 1 , 1 1300 — I Y .o+'' X;3500 . ,'00- - 1300 ;73 1700 :a 1250 — 1250 ' F TG 2300 ?4 6h - 3500 2600 1200 — 1200 1150 — 1150 3200 1100 ■ 1100 300 1050 — ■ 1050 3200 2300 — 1000 ■ 1000 1400 2900 Z rn 950 .. .. 950 O 5 . t co r O Z 900 a. ' ,/Q - - -- 2000 — 900 QO 850 — 13 3/8" Csg Pt 2900 — 850 End of Build 1 P • 800 — 2600 — 800 1 1100 750 — 1700 — 750 • ' 00 J ^ti 0 8600 �q/ - 700 — -\ 700 1 tj 650 - ^A P ^ , — 650 KBU34 -6: p� 1400 2000 800 600 — 800 — 600 • 500 i0 500 20 80 slot #KBU12 -5 200 1F ''- : 00 550— , JQ 1100 550 --.L.. 1 1 1 1 1 1 1 1 1 1 1? 1 1 -600 -550 -500 -450 -400 -350 -300 -250 -200 -150 -100 -50 0 50 100 Scale 1 Inch =10on Easting (ft) • • MN M MARATHON Oil Company 1� EH L ocation: Cook Inlet, Alaska (Kenai Penninsula) Slot: KBU42 -6X Field: Kenai Gas Field (NAD83) Well: KBU42 -6X Ili l ia Q MARATHON Facility: Pad 41 -7 Wellbore: KBU42 -6X Y Plot reference wellpath is KBU42 -6X Version #4 True vertical depths are referenced to Glacier #1 (RKB) Grid System: NAD83 / TM Alaska State Plane, Zone 4 (5004), US feet Measured depths are referenced to Glacier #1 (RKB) North Reference: True north Glacier #1 (RKB) to Mean Sea Level: 87 feet • Scale: True distance Mean Sea Level to Mud line (Facility: Pad 41 -7): 0 feet Depths are in feet Coordinates are in feet referenced to Slot Created by: jonethoh on 3/9/2009 scaieimcn =loon Easting (ft) -600 -550 -500 -450 -400 -350 -300 -250 -200 -150 -100 -50 0 50 1�it 1 1 1 1 1 1 1 1 1 », °Y" -, 4700 1 :" - 1 1 1 ' w , ° 1 1950 G . C. iN�t iv. 5 b _ 6, / •` Y 1950 47C) 'f - ; _ q,..1 3200 3200 1900 — 1900 3800 1850 — — 1850 2900 4400 1800 — — 1800 4400 • 1750 — — 1750 3500 1700 — 2900 — 1700 1650 — — 1650 4100 2000 — , Z o cm 1600 — 4100 .. 1600 c L co 3 r O 9 Z 3200 1550 — — 1550 1500 — — 1500 3800 2600 1450 — — 1450 2600 3800 . 1400 — — 1400 2900 1350 — - — 1350 1300 — 3500 1700 r — 1300 1250 — — 1250 2300 �TG 3500 G 2600 1200 x 4 & 1 1 1 1 1 1 1 1 4-1 1 1 - 1 1 — 1200 -600 -550 -500 -450 -400 -350 -300 -250 -200 -150 -100 -50 0 50 100 sc.iitlincht loon Easting (ft) n� a BE AA A� � ®N Oil Company y p � r l ocation: Cook Inlet, Alaska (Kenai Penninsula) Slot: KBU42 -6X �R R#�ii Field: Kenai Gas Field (NAD83) We KBU42 -6X I1r 1 J.`is s� MARATHON Facility: Pad 41 -7 Wellbore: KBU42 -6X l� i Plot reference wellpath is KBU42 -6X Version #4 _True vertical depths are referenced to Glacier #1 (RKB) Grid System: NAD83 / TM Alaska State Plane, Zone 4 (5004), US feet Measured depths are referenced to Glacier #1 (RKB) North Reference: True north _Glacier #1 (RKB) to Mean Sea Level: 87 feet Scale: True distance Mean Sea Level to Mud line (Facility: Pad 41 -7): 0 feet Depths are in feet Coordinates are in feet referenced to Slot Created by: jonethoh on 3/9/2009 Scale 1 inch. 100 fl Easting (ft) -400 -350 -300 -250 -200 -150 -100 -50 0 50 100 150 200 250 1 1 1 I ._ 1 4100 12 1 I 1 1.; I ; X* 1 1; �_. 1 1 6200 \' vI4100 N, v w 2550 — ; x ` 4.\ Y ' , 1,53_. Y — 2550 a - 2500 — — 2500 5900 2450 — — 2450 2400 — — 2400 5600 3800 2350 ■ c800 — — 2350 2600 2300 — — 2300 5300 2250 - ■ 2250 3200 - Z 2200 — ■ 2200 0 m 3 1400 t co r O Z 2150 — — 2150 3500 — 5000 2100 — — 2100 • 2050 — 4100 — 2050 2000 — — 2000 4700 2300 1950 — — 1950 3200 — 1900 — — 1900 3800 1850 — — 1850 2900 4400 1800 — — 1800 J 1 1 i i 1 i i i i 1 1 i I -400 -350 -300 -250 -200 - 150 - 100 - 0 50 100 150 200 250 Scale 1 inch = 1001, Easting (ft) M■ l MARATHON Oil Company BAKER L Cook Inlet, Alaska (Kenai Penninsula) Slot: KBU42 -6X ���� Field: Kenai Gas Field (NAD83) Well: KBU42 -6X BAKER MARATHON Facility: Pad 41 -7 Wellbore: KBU42 -6X Plot reference wellpath is KBU42 -6X Version #4 True vertical depths are referenced to Glacier #1 (RKB) Grid System: NAD83 / TM Alaska State Plane, Zone 4 (5004), US feet Measured depths are referenced to Glacier #1 (RKB) North Reference: True north Glacier #1 (RKB) to Mean Sea Level: 87 feet Scale: True distance Mean Sea Level to Mud line (Facility: Pad 41 -7): 0 feet Depths are in feet Coordinates are in feet referenced to Slot Created by: jonethoh on 3/9/2009 Sae inch _loon Easting (ft) -250 -200 -150 -100 -50 0 50 100 150 200 250 300 350 400 3000 ■ 70(1 � 1 1 1 1 1 7�1 M W 1 1 k L 1 1 1Ao ■ 3000 ■ ' ic x j i v 4100 � 0 Y Beg in Angle Drop i Y Y . . . ADO e � 3o W ` Y' Y 4------1 KTU43 •XRD2 -. 2950 2950 - - . 7400 7400 2900 - - - 2900 C. ? ' 2850 ?�'., - 2850 '; 7100 3800 4400 2800 - - 2800 ��800 - 2750 2750 'r 2700 - 2900 - 2700 6500 2650 - 3500 - 2650 Z rn 3500 s c 7 0 2600 - - 2600 Z 4100 6200 4100 2550 - - 2550 2500 - - 2500 5900 2450 - - 2450 2400 - - 2400 3200 5600 3800 2350 - 4800 • - 2350 2600 I 1 2300 - - 2300 5300 2250 ■ - 2250 3200 1 1 1 1 1 1 L 1 1 1 1 1 1 1 -250 -200 -150 -100 -50 0 50 100 150 200 250 300 350 400 Seale 1 indl a 100 fl Easting (ft) M M ATHON Oil Compan BA L ocation: Cook Inlet, Alaska (Kenai Penninsula) Slot: KBU42 -6X ��� Field: Kenai Gas Field (NAD83) Well: KBU42 -6X I�'�'L � MARATHON Facility: Pad 41 -7 Wellbore: KBU42 -6X Plot reference wellpath is KBU42 -6X Version #4 True vertical depths are referenced to Glacier #1 (RKB) Grid System: NAD83 / TM Alaska State Plane, Zone 4 (5004), US feet Measured depths are referenced to Glacier #1 (RKB) North Reference: True north Glacier #1 (RKB) to Mean Sea Level: 87 feet Scale: True distance Mean Sea Level to Mud line (Facility: Pad 41 -7): 0 feet Depths are in feet • Coordinates are in feet referenced to Slot Created by: jonethoh on 3/9/2009 Scale inch _ ooX Easting (ft) -150 -100 -50 0 50 100 150 200 250 300 350 400 450 500 550 37001 1 1 1 1 1 1 1 :m 1 1 i r > 1 1 1 X3700 i c' ` Y 4700 " v ` jr 3650 - • _ ■ 3650 3600 - - 3600 3550 - 4400 .. 3550 3500 - - 3500 3450 - .- 3450 3400 - 7700 1 - 3400 7400 3500 7100 6800 6500 33 - 4100 6200 - 3350 d 5900 - F Y 5600 Z 5300 - 3300 p. m 3300 - c 0 7 t in O 5000 Z 3250 - - 3250 4700 3200 - ■ 3200 I,, ! 3150 'Yi -3150 4400 - 3100 - - 3100 4700 3800 3050 - - 3050 3200 3000 - - 3000 4100 - Begin Angle Drop 2950 — a — T- - : KTU4 XRD2 — 2950 1 2900 - - 2900 1 1 1 1 1 1 1 1 1 1 1 1 1 1 -150 -100 -50 0 50 100 150 200 250 300 350 400 450 500 550 Scale inch -100f Easting (ft) M RATHON oil Company sA !�t M L Cook Inlet, Alaska (Kenai Penninsula) Slot: KBU42 -6X Field: Kenai Gas Field (NAD83) Well: KBU42 -6X INT:Q MARATHON Facility: Pad 41 -7 Wellbore: KBU42 -6X �f Plot reference wellpath is KBU42 -6X Version #4 True vertical depths are referenced to Glacier #1 (RKB) Grid System: NAD83 / TM Alaska State Plane, Zone 4 (5004), US feet Measured depths are referenced to Glacier #1 (RKB) North Reference: True north Glacier #1 (RKB) to Mean Sea Level: 87 feet Scale: True distance Mean Sea Level to Mud line (Facility: Pad 41 -7): 0 feet Depths are in feet Coordinates are in feet referenced to Slot Created by: jonethoh on 3/9/2009 Scale inch =100h Easting (ft) 0 50 100 150 200 250 300 350 400 450 500 550 600 650 700 4050 J 1 1 1 1 , ", 1 1 1 1 1 1 1 1 1 I_ 4050 77 D m Y 4000 — — 4000 3950 — — 3950 3900 — — 3900 KBU42 -6X TD(NAD 83) 25- Feb-09 KBU42 -6X Tyonek 84 -6(NAD 83) 25 -Feb-09 . KBU42 -6X Tyonek(NAD 83) 25-Feb-09 3850 — KBU42 -6X Lower Beluga(NAD 83) 25- Feb -09 — 3850 KBU42 -6X Middle Beluga(NAD 83) 25-Feb -09 3800 — 7 TD 3 1/2" Csg Pt r-- — 3800 oo: 9 5/8" Csg Pt N r Jr • 8300 3750 — I P — 3750 3800 5000 3700 — — 3700 4700 p rn 3650 — — 3650 5 1✓ (0 o Z 3600 — — 3600 3550 — 4400 — 3550 3500 — — 3500 3450 — — 3450 G N 3400 — 7700' — 3400 3500 — 7100 6800 6500 3350 — 4100 6200 ■ 3350 5900 5600 3300 — 5300 — 3300 5000 3250 , 1 1 1 1 1 1 1 1 1 1 1 1 1 1 3250 0 50 100 150 200 250 300 350 400 450 500 550 600 650 700 Scale 1 Inch r 100 fl Easting (ft) M IVI ATHON Oil Company s�►K # L ocation: Cook Inlet, Alaska (Kenai Penninsula) Slo KBU42 -6X ��u Field: Kenai Gas Field (NAD83) Well: KBU42 -6X J N EQ MARATHON Facility: Pad 41 -7 Wellbore: KBU42 -6X ill Plot reference wellpath is KBU42 -6X Version #4 True vertical depths are referenced to Glacier #1 (RKB) Grid System: NAD83 / TM Alaska State Plane, Zone 4 (5004), US feet Measured depths are referenced to Glacier #1 (RKB) North Reference: True north Glacier #1 (RKB) to Mean Sea Level: 87 feet Scale: True distance Mean Sea Level to Mud line (Facility: Pad 41 -7): 0 feet Depths are in feet Coordinates are in feet referenced to Slot Created by: jonethoh on 3/9/2009 Traveling Cylinder: Map North All depths are Measured Depths on Reference Wellpath ( 30. - - 30' - a I . 49 - ....._.1201, r -- • �..� - Y jy- 60' # w 4 y - 111 ar 1 i i , i ,--- ± _ i 1 i / i T .,., _ , i . i ,,,„ .., . '; \ 1 \ \ \ 2, 4 , i yf 1 a .,1 a 1 j e h -n 1 nn ,n a I t i i ! O d P i j \ ___ - --j --- , '1 1 i \ \ \\,,-!!- ''',, / !!--,../ .1 I ) i ---- ---_i_ 1 7 / 1 ! f p P 1 �i i 4 t ` ° �" `M. Al � "* t 1 1 ` l Li : , i ,, p . a . 6 t , , r , 7 l e , -' f 0 2d0' 120 y a 210• 150" a 180• -9./ o/ of ,^34b ir Scale 1 inch = 50 ft • . Clearance Summary Report KBU42 -6X Version #4- Closest Approach BAKER MARATHON Page 1 of 4 GIHEiI INTEQ REFERENCE WELLPATH IDENTIFICATION • Operator MARATHON Oil Company Slot KBU42 -6X Area Cook Inlet, Alaska (Kenai Penninsula) Well KBU42 -6X Field Kenai Gas Field (NAD83) Welibore KBU42 -6X Facility Pad 41 -7 REPORT SETUP INFORMATION Projection System NAD83 / TM Alaska State Plane, Zone 4 (5004), US feet Software System WellArchitect® 2.0 North Reference True User Ulricard Scale 0.999958 Report Generated 3/9/2009 at 2:03:43 PM Convergence at slot 1.09° West Database /Source file WA_Anchorage/KBU42-6X.xml WELLPATH LOCATION Local coordinates Grid coordinates Geographic coordinates North[ft] East[ft] Easting[USft] Northing[USft] Latitude Longitude . Slot Location - 542.01 - 1034.92 1414892.43 2361232.74 60 °27'26.850 "N 151 °14'57.696 "W Facility Reference Pt 1415937.35 2361755.09 60 0 27 1 32.188 "N 151 0 14'37.059 "W Field Reference Pt 1410937.15 2361824.52 60°27'31.931"N 151°16'16.783"W WELLPATH DATUM Calculation method Minimum Curvature Glacier #1 (RKB) to Facility Vertical Datum 87.00ft Horizontal Reference Pt Slot Glacier #1 (RKB) to Mean Sea Level 87.00ft Vertical Reference Pt Glacier #1 (RKB) Facility Vertical Datum to Mud Line (Facility) 0.00ft MD Reference Pt Glacier #1 (RKB) Field Vertical Reference Mean Sea Level POSITIONAL UNCERTAINTY CALCULATION SETTINGS Ellipse Confidence Limit 3.00 Std Dev Ellipse Start Depth 0.00ft Surface Position Uncertainty included Declination 18.61° East of TN Dip Angle 73.38° Magnetic Field Strength 55429 nT ANTI - COLLISION RULE 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 0.00ft Subtract Casing & Hole Size yes Apply Cone of Safety no • • Clearance Summary Report .r1d KBU42 -6X Version #4- Closest Approach BAKER Pa 2 of 4 HUGHES MARATHON Page REFERENCE WELLPATH IDENTIFICATION Operator MARATHON Oil Company Slot KBU42 -6X Area Cook Inlet, Alaska (Kenai Penninsula) Well KBU42 -6X Field Kenai Gas Field (NAD83) Wellbore KBU42 -6X Facility Pad 41 -7 HOLE & CASING SECTIONS Ref Wellbore: KBU42 -6X Ref Wellpath: KBU42 -6X Version #4 String/Diameter Start MD End MD Interval Start TVD End TVD Start N/S Start E/W End N/S End E/W [ft] [ft] [ft] [ft] [ft] [ft] [ft] [ft] [ft] 16in Open Hole 0.00 2509.38 2509.38 0.00 2178.85 0.00 0.00 842.26 - 380.42 13.375in Casing Surface 0.00 2509.38 2509.38 0.00 2178.85 0.00 0.00 842.26 - 380.42 12.25in Open Hole 2509.38 7084.52 4575.14 2178.85 5347.00 842.26 - 380.42 3761.55 363.40 9.625in Casing Intermediate 0.00 7084.52 7084.52 0.00 5347.00 0.00 0.00 3761.55 363.40 8.5in Open Hole 7084.52 10294.52 3210.00 5347.00 NA 3761.55 363.40 NA NA 3.5in Casing Production 0.00 10294.51 10294.51 0.00 8556.99 0.00 0.00 3761.55 363.40 SURVEY PROGRAM Ref Wellbore: KBU42 -6X Ref Wellpath: KBU42 -6X Version #4 Start MD End MD Positional Uncertainty Model Log Name /Comment Wellbore [ft] [ft] 0.00 7084.52 NaviTrak (Magcorrl) KBU42 -6X 7084.52 10294.52 NaviTrak (Magcorrl) KBU42 -6X I 0 • AOL Clearance Summary Report ,,,ri K BU42 -6X Version #4- Closest Approach BAKER MARATHON 3 of 4 K"��r INTE REFERENCE WELLPATH IDENTIFICATION Operator MARATHON Oil Company Slot KBU42 -6X • Area Cook Inlet, Alaska (Kenai Penninsula) Well KBU42 -6X Field Kenai Gas Field (NAD83) Wellbore KBU42 -6X Facility Pad 41 -7 I CALCULATION RANGE & CUTOFF From: O.00ft MD ITo: 10294.52ft MD IC -C Cutoff: (none) OFFSET WELL CLEARANCE SUMMARY (52 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 Ell Sep Ell Sep Status [ft] [ft] [ft] Ell Sep [ft] Dvrg from [ft] [ft] Pad 41- slot #KDU 9 KDU 9 KDU 9 NaviTrak MWD <184 - 98505 1551.48 79.15 9000.00 1554.67 54.42 9000.00 PASS 7 Pad 41- slot #KU 43 -6 KU43 -6 KU43 -6Rd MWD <4250 -5740> 3718.98 150.54 3718.98 3672.01 79.88 3672.01 PASS 7 Pad 41- slot #KU 43 -6 KU43 -6 KU43 -6 GMS <0- 4129 >, MSS<4174 -5701> 3718.98 150.54 6300.00 3672.01 79.88 6300.00 PASS 7 Pad 41 slot# KBU34 -6 KBU34 -6 KBU34 -6 NaviTrak <165- 1509' > <1623 - 2191.05 117.52 8300.00 2200.00 84.35 8800.00 PASS 7 5343' > <5463 - 77395 Pad 41- Slot #KBU42 -6 KBU42 -6 KBU42 -6 MWD <0 -8624> 5114.38 281.83 9500.00 5071.43 110.56 9500.00 PASS 7 Pad 41 slot #KBU33 -6 KBU33 -6 KBU33 -6 GMS <0- 7902 >, MWD <7902- 3109.65 190.57 7400.00 3080.74 140.78 7600.00 PASS 7 8110> Pad 41 Slot #KBU43 -7X KBU43- KBU43 -7X MWD <0 -8610> 1700.00 282.02 1700.00 1703.37 251.90 1703.37 PASS 7 7X Pad 41- slot #KU 43 -7 KU 43 -7 KU 43 -7 MSS <0 -5707> 465.47 286.33 465.47 508.73 270.25 508.73 PASS 7 Pad 41- slot #KDU 4 KDU4Rd KDU4Rd MSS <4320 - 10810> 1073.67 321.61 1073.67 1096.20 300.26 1096.20 PASS 7 Pad 41- slot #KDU 4 KDU4 KDU4 GMS <0 -5549> 1073.67 321.61 1073.67 1096.20 300.26 1096.20 PASS 7 Pad 41- slot #KU 11 -8 KU11 -8 KU11 -8 GMS <0 -5350> 238.32 333.51 238.32 266.24 319.96 266.24 PASS 7 Pad 41 slot #KTU43 -6X KTU43- KTU43 -6XRd MWD <7670 -9464> 0.00 360.27 10294.52 348.17 346.45 10294.52 PASS 7 d ad 41 slot #KTU43 -6X KTU43- KTU43 -6X GMS <0- 8370'> 0.00 360.27 9500.00 348.17 346.45 9500.00 PASS Pad 41 slot #KTU43 -6X KTU43- KTU43- MWD <7700 -9470> 0.00 360.27 10294.52 348.17 346.82 10294.52 PASS 7 6X 6XRD2 Pad 41- slot #KDU 2 KDU #2 KDU #2 MSS <0- 10522> 203.89 364.17 203.89 217.23 350.80 217.23 PASS 7 Pad 41- Slot #KBU41 -6 KBU41 -6 KBU41 -6 MWD <0 -9733> 5376.29 437.50 9500.00 5395.46 364.85 9600.00 PASS 7 Pad 41- slot #KU 24 -5 KU24 -5 KU24 -5Rd MWD <3470 -4816> 0.00 413.02 0.00 0.63 399.79 0.63 PASS 7 Pad 41- slot #KU 24 -5 KU24 -5 KU24 -5 GMS <0 -5900> 0.00 413.02 0.00 0.63 399.79 0.63 PASS 7 Pad 41- slot #KU 43 -6A KU 43 -6A KU43 -6A MSS <0 -5300> 0.00 407.25 4300.00 69.00 399.85 4300.00 PASS 7 Pad 41- slot #KTU13 -5 KU13 -5 KU13 -5 GMS <0 -8120> 385.10 419.85 9500.00 402.65 405.46 9500.00 PASS 7 Pad 41- slot #KBU42 -7 KBU42 -7 KBU42 -7Rd NaviTrak w/ AP <4077 - 79265 935.43 460.77 935.43 949.81 442.74 949.81 PASS 7 Pad 41- slot #KBU42 -7 KBU42 -7 KBU42 -7 MWD <0 -7570> 935.43 460.77 935.43 949.81 442.74 949.81 PASS 7 Pad 41- slot #KBU 41 -7 KBU41 -7 KBU41 -7 GMS <0 -7290> 226.24 472.14 9000.00 261.45 458.72 9000.00 PASS 7 el • Pad 41- KBU41- 7 slot #KBU41 -7X 7X KBU41 -7X MWD <0 -5300> 0.00 485.40 0.00 0.00 472.18 0.00 PASS Pad 41 slot #24 -6 KTU24- KTU24 -6H MWD <8844 -8940> 822.80 529.61 10294.52 858.77 513.68 10294.52 PASS 7 6H RD Pad 41 slot #24 -6 KTU24- KTU24 -6H UNKN <8820 -9010> 822.80 529.61 10294.52 858.77 513.68 10294.52 PASS 7 6H (Pilot) Pad 41 slot #24 -6 KTU24- KTU24 -6H MWD <0- 10960> 822.80 529.61 10294.52 858.77 513.68 10294.52 PASS Pad 41 Slot #KBU33 -6X KBU33- KBU33 -6X MWD <0 -8405> 2553.27 554.89 9600.00 2551.16 517.32 9600.00 PASS 7 6X Pad 41 slot #KBU12 -5 KBU12 -5 KBU12 -5 NaviTrak <212- 1890' > <2014 - 662.50 553.57 9500.00 671.65 539.01 9500.00 PASS 7 6496' > <6607 - 89205 Pad 41- slot #32 -7 KTU32 -7 KTU32 -7 MWD <0 -8864> 0.00 565.36 2000.00 849.58 549.25 2000.00 PASS 7 Pad 41 slot #KTU32 -7H KHU32 KTU32 -7H MWD <0- 11857> 350.00 579.82 7500.00 400.00 565.70 7500.00 PASS Pad 41- slot #KBU44 -6 KBU 44 -6 KBU 44 -6 MWD <0 -7440> 0.00 588.82 8500.00 0.00 575.59 8600.00 PASS 7 Pad 41 slot #KBU11 -8X 3U11 KBU11 -8X MWD <0-7659> 675.00 641.79 675.00 695.71 626.91 695.71 PASS 7 8X Pad 41 slot# KBU11 -8Y KBU 11- KBU 11 -8Y MWD <0 -8220> 600.00 703.25 9100.00 619.52 688.68 9400.00 PASS Pad 14- slot #KU 31 -7X KU 31 -7 KU 31 -7 MWD <0 -5790> 2870.00 1613.86 2870.00 2926.65 1491.22 2926.65 PASS 6 (Originally KU31 -7) Pad 14- Slot #KBU 22 -6 KBU22 -6 KBU22 -6 MWD <0 -8855> 7733.28 1798.75 9500.00 7742.51 1525.63 9500.00 PASS 6 Pad 14- slot #KBU 31 -7 KBU31 -7 KBU31 -7Rd MWD <5814 -7575> 2380.00 1971.88 8900.00 2403.60 1845.19 8900.00 PASS • 6 Pad 14- slot #KBU 31 -7 KBU31 -7 KBU31 -7 GMS <0 -7375> 2380.00 1971.88 2380.00 2403.60 1845.19 2403.60 PASS 6 • III M Clearance Summary Report M KBU42 -6X Version #4- Closest Approach BAKER Qa�� Pa 4 of 4 HUGHES INTEQ REFERENCE WELLPATH IDENTIFICATION Operator MARATHON Oil Company Slot KBU42 -6X Area Cook Inlet, Alaska (Kenai Penninsula) Well KBU42 -6X Field Kenai Gas Field (NAD83) Wellbore KBU42 -6X Facility Pad 41 - I CALCULATION RANGE & CUTOFF From: O.00ft MD ITo: 10294.52ft MD IC -C Cutoff: (none) OFFSET WELL CLEARANCE SUMMARY (52 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 Ell Sep Ell Sep Status [ft] [ft] [ft] Ell Sep [ft] Dvrg from [ft] [ft] Pad 14- Slot #KU 21 -7X KU21 -7X KU21 -7X MWD <193 -5032> 2900.00 2084.55 2900.00 2963.28 1958.90 2963.28 PASS 6 Pad 14- Slot #KBU 24 -6 KBU24 -6 KBU24 -6 MWD <0 -7500> 2612.50 2219.24 8400.00 2659.52 2094.95 8400.00 PASS . 6 Pad 14- Slot #KBU 24 -6 KBU24 KBU24 -6Rd MWD <3964 -7830> 2612.50 2219.24 8300.00 2659.52 2094.95 8300.00 PASS 6 6Rd Pad 14- slot #KU 21 -7 KU21 -7 KU21 -7 MSS <0 -4453> 2313.12 2296.92 2313.12 2329.83 2167.40 2329.83 PASS 6 Pad 14- slot #KBU 23X -6 KBU23X -6 KBU23X -6 GMS <0 -6950> 2380.62 2322.24 8200.00 2408.36 2193.26 8200.00 PASS 6 Pad 14- Slot #KBU 23 -7 KBU 23 -7 KBU 23 -7 MWD <0 -9320> 2275.00 2388.83 2275.00 2288.95 2261.59 2288.95 PASS 6 Pad 14- slot #KU 14X -6 (Originally KU14X -6 KU14X -6 GMS <0- 10000> MSS <10194- 2272.85 2418.41 7400.00 2288.73 2291.10 7400.00 PASS 6 KDU 8) 10225> Pad 14- Slot #KBU 11 -7 KBU11 -7 KBU11 -7 MWD <0 -7900> 2150.00 2463.89 9400.00 2163.59 2335.58 9400.00 PASS 6 Pad 14- slot #KBU 14 -6Y KBU14 -6Y KBU14 -6Y NaviTrak MWD <148 - 76005 2175.00 2500.63 9300.00 2194.66 2375.42 9300.00 PASS 6 Pad 14- slot #KTU 13 -6 (Originally KU13 -6 KU13 -6 MSS <0 -5500> 2012.50 2506.70 2012.50 2025.15 2385.53 2025.15 PASS 6 KU13 -6) Pad 14- slot #KU 14 -6Rd KU14 -6 KU14 -6 Totco Incl Survey <4800 - 2200.00 2578.85 7109.52 2248.15 2419.30 7109.52 PASS 6 Sidetrack 5403'> Pad 14- slot #KU 14 -6Rd KU14 -6 KU14 -6 Totco Incl. Surveys <200- 2200.00 2578.85 10294.52 2248.15 2419.30 10294.52 PASS 6 15047'> Pad 14- slot #KDU 1 KDU -1 KDU -1 MSS <0 -9895> 2260.00 2644.87 10294.52 2276.64 2511.32 10294.52 PASS 6 Pad 14- slot #KU 43 -12 KU43 -12 KU43 -12 MSS <0 -6530> 1820.00 2742.71 1820.00 1824.21 2619.19 1824.21 PASS 6 • • i t D LL NG FLUIDS PRO'G_' s .. ` M �V4AIAT H well* KB U 42 -6X Prepared by: Jim Dwyer Senior Project Engineer M -I SWACO Reviewed by: David Heriard M-I SWACO Presented to: Will Tank Drilling Engineer Marathon Marathon Oil Company PO Box 190168 Anchorage, Alaska 99519 ATTN: Will Tank Will: Enclosed is the recommended drilling fluid program for the KBU 42 -6X Well to be drilled this year. The following is a brief synopsis of the program. Overview: KBU 42 -6X is a development well targeting the Beluga and Tyonek formations at the Kenai this Field. Flo -Pro fluid with 3% KCL 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 w ere noted in this interval while drilling the offset wells. Intermediate Interval: This interval will be drilled with a Flo -Pro NT fluid. After drilling out the surface cement, the well will be displaced to a 3% KCL Flo -Pro fluid. While the program calls for SafeCarb bridging material, Mix II and Sack Black should be added to the mud system prior to drilling the Sterling A8 sand ( +/- 4966' MD). This is a highly porous depleted zone that has contributed to losses of whole mud in the past. Production Interval: This interval will be drilled with the same fluid that was used to drill the intermediate interval. The fluid will be pre- treated with Bicarb prior to drilling out the cement. Any further fluid dilutions will be made in order to keep the mud properties at the recommended specifications. Fluid loss should be maintained @ 4 -6 cc's API for this interval. Estimated pressures in the lower Belu and Tyonek may require a mud weight of up to 10.6 ppg @ + 6082' TVD with pressures in the Tyonek $4 -6 zone; needing possible mud weight of 12.3 ppg. Completion: The cement will be displaced with 3% KC1 brine for the completion phase of the program Congor 303A and Sodium Meta Bisulfate will be added to the drilling fluid that will be left between the 3 - . 1/2" completion string and the 9 -5/8" casing on the final circulation prior to cementing. Jim Dwyer Sr. Project Engineer Reference Wells: KBU 22 -6; KBU 11 -8Y; KBU 41 -6; KBU 11 -7; KTU 43 -6X RD2 NOTE: This program is provided as a guide only. Well conditions will always dictate fluid properties required., • r4k SWA EXECUTIVE SUMMARY 4s o> Our goal is zero spills and zero incidents and 100% compliance while providing fluids services to Marathon 441'7.R044ti"' Oil Company. IVU sinfAc The new centrifuge installed on rig vilI assist in removal of LGS for minimizing mud weight and dumping and dilution of fluids. Disposal costs at G & I facility will be reduced with the use of new centrifuge installation. MI SW We expect to drill this well for a product cost of less than $37.60 per foot. This estimate is based on 12.3 , ppg mud weight in production hole. We estimate the use of less than 6659 barrels to drill 1FE this well, not withstanding any losses to the formation and possible reuse of mud system for losses in future Kenai Gas field wells. • • EIWACC) Section 1 — Objectives 1 Benchmarks / Goals Goal / Objective Achieve Health, Safety and Environmental Goals Benchmark No Accidents, No harm to people, No damage to environment Performance Days away from work, medical treatments, fluids discharge, spills Measure j Goal / Objective No NPT on well Benchmark No NPT due to mud properties out of specification. Performance Daily review of mud properties with mud engineer and project Measure engineer Goal / Objective Minimal losses to formation Benchmark Control and /or minimize seepage losses in underpressured sands. Performance Verify losses per hole section on well with OneTrax Measure Goal / Objective No NPT on well Benchmark No hole cleaning issues upon following the program and /or rig site mud engineers recommendations. Performance Monitor NPT on daily Marathon reports Measure • Mai swA Section 2 - Well Design Well: KBU 42 -6X Casing Hole Casing Depth TVD Mud Mud Weight Cost Sum Size Size Program (MD -SS) (TVD -SS) System (PP9) Days (in (in) (ft ft Conductor 100' 2509 2179 GEL SPUD 8.8 — 9.2 $22,480 6 13 3/8^ 16" 9 5/8" 12.25" 7085 5347 FLOPRO 8.9 9.2 $282,926 9 3.5" 8.5" 10295 8557 FLOPRO 9.8 — 12.3 $105,467 7 3% KCL Brine 8.5 $11,844 3 Comp Cost does include engineering charges FORMATION TOPS ESTIMATED PORE PRESSURES Pore Pressure Formation Estimated Tops (TVD) (ppg) Sterling A8 3597' .8 — 6.5 Beluga 4712' 1.5 — 7.3 Middle Beluga 5372' 5.8 — 10.6 Lower Beluga 6082' 5.8 — 10.6 Tyonek 7237' 3.8 — 10.6 Tyonek 84 -6 8367 12.1 — 12.3 TD 7788' 12.1 — 12.3 ' • • e rim WELL PROFILE_ ��" ©1995- 2006M -ILLC. MD: 10295 ft Operator: Marathon • '" ° i"^i�ic. nip: 6551 ft WeIlName: KBU42 -6X VIRTUAL HYDRAULICS Directional l Pofile Marathon ion KBU 42 r -6X , . f,, 111111M ME M To 5 _ 111111 ! IIuuuIIIiimm IN Mill ■ ■ ■ ■■ i I ■ ■ ■ ■ ■ ■■■ ■ ■■ 1 ■ ■ ■■ ° i 1 I I ' .1 1 i 1111111.11111111 .111.1111111111 MUM' I IIIIIIMMIIIMMINIII P':P:i'..:: l';--1-11-: , 1 r' ......... I Nos ru.. umi ll•II.,;;..,,,:,:.,,, „.._, , __ ..._ iiiiiMIIIMEIMILMI ■ ■•■ ■ ■ ■■■ ■ ■ 1� ■■ ■■■ ■ ■■ ■ ■ ■ ■■ ■I I ■ ■f� 3 .q i 1 op11.1 ! .i.,,a _.„-r_=___- , „„,. ___ ,. ; 1 INII .. ,„ .,,,,,,_ , . , s;„,„3._.__z.„, ; i 4 3 g �■ Horizontal Displacement (1000 ft) n i I I. 1 's> I I • • 1VhiSVitit Section 2 — Well Design EMS Mud Cuttings and Mud Target Goals (bbls.) Performance 16" OH 12.25" OH 8,5" OH Benchmark Section Section Section Section Length (ft) 2509 4576 3210 Cuttings Discharges ** 624 667 225 Mud * ** Discharges 1872 2001 225 Mud+ Cuttings 2496 2668 450 Discharges EMS Mud Cuttings and Mud Target Goals (bblsift.) Performance 16" OH 12.25" OH 8.5" OH Benchmark Section Section Section Section Length (ft) 2509 4576 3210 Cuttings Discharges 0.248 .145 .07 Mud Discharges .746 .437 .07 Mud + Cuttings .994 .582 .14 Discharges _ ** Gauge hole cuttings * ** Includes mud on cuttings • • pia SWAG Section 3 -- Challenges Potential Problems Discussion / Recommendations COMMUNICATION — The Field Mud Engineer will communicate daily with the In -Town Project Engineer. The Project Engineer will then communicate daily with the rig Drilling Engineer. Communications should be about, but not limited to, fluid properties, hole difficulties, possible changes to the mud program, and proposals to use products not included in the mud program. WHOLE MUD LOSSES TO THE FORMATION — Refer to fluid formulas for maintaining proper bridging material concentration in the mud system while drilling the intermediate and production intervals. FLUID LOSS CONTROL — In the production interval the API fluid will be maintained in the 5 - 7 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 around 25 — 35,000 cps. In addition to adequate additions of FloVis Pius, this will also require keeping reactive drill solids to a minimum in order to reduce or eliminate false and unwanted high LSRV. DRILL SOLIDS — MBT — The MBT should be kept at less than 5 ppb in the production interval through aggressive use of solids equipment and dilution as needed. MIXING CONDITIONS — Whenever possible all treatments to the mud system should,: be made as pre -mix additions. Polymers and 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. CORROSION - 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 MYACIDE 25G ADDITIONS — Myacide 25G additions should be made daily when drilling in the production interval, in the range of 5 gallons per day. CENTRIFUGE — The centrifuge should be used whenever drill solids become toohigh 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 centrifuge. Monitor discharge with weighted; mud :and only run briefly as needed. WEIGHTING UP — All increases in mud weight should be accomplished with barite additions. Safecarb additions will also increase mud weight in the lower mud weights. • • Section 3 — Challenges Potential Problems Hole Cleaning Recommendations ❑ Low -shear rate viscosity "LSRV" values (6 and 3 rpm) has a greater impact on hole cleaning than yield point, in addition to providing barite suspension under dynamic as well as static conditions. Optimize rheology to increase hole cleaning efficiency of fluid (Adjustment of Yield Point and 6 rpm readings). ❑ Rheology and Hydraulics calculations will be run daily and the mud properties will be adjusted as needed to maximize hole cleaning. ❑ Use the highest possible annular velocity to maintain good hole cleaning. Annular velocity provides the upward impact force necessary for good cuttings transport. ❑ Control drill to manage difficult hole cleaning situations. Penetration rates determine the annular cuttings load. Use the PWD data (if available) to determine when it is necessary to stop drilling and circulate the hole. ❑ Keep cuttings concentration less than 5% (by volume) in order to minimize drilling problems. ❑ Sweep Recommendations: ❑ Don't recommend the use of sweeps unless hole conditions dictate. ❑ Hi- Vis sweeps are recommended to use if needed. The volume should be enough to cover at least 200 -300 annular volume of the open hole. The recommended rheology of the sweep would have the Yield Point in the 35 -40 range and the 6 RPM readings in the 15 -20 range. ❑ Weighted sweeps are another option, but Hi -Vis sweeps are preferred. ❑ The need to pump LCM sweeps will be dictated by hole conditions. _ Bit/BHA Balling Recommendations ❑ Young clay formations can absorb high volumes of water and can be extremely sticky and problematic regardless of the degree of inhibition. ❑ The drilling rate should be controlled to keep the concentration of cuttings in the annulus below 5 %. ❑ Short trips should be made as necessary to minimize buildup of cuttings in areas hole washout. ❑ During trips, the BHA can accumulate cuttings that will potentially ball it. Recommend ; circulating for a short period to circulate up any formation that may have adhered to theIBHA or bit•during the trip. • • Section 4 - Offset Well Data 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 bring KBU 11 -8Y 16 498 8.65 11 16 17 Spud in, drill ahead 1550 9 9 16 8.8 Drlg to csg point, short trip OK, POH 1550 9.1 9 19 10.6 Run & cement surface casing 12.25 3774 9.1 9 17 7 Drlg out, disp to FloPro, drlg ahead 5033 9.3 13 15 7.8 Drlg to 3884', short trip OK, drlg ahead 5820 9.45 17 23 5.8 Drlg to csg point, add 3% Lubetex (torque), POH 5820 9.55 19 22 5.8 Log well, wiper trip, 5820 9.7 20 26 5.4 Run csg, cement same, lost partial returns 8.5 5840 9.3 14 18 6.2 Drlg out, LOT, drlg ahead, add EMI -920 and Lubetex for torque 7574 9.75 17 27 5 Drlg ahead 8220 10 16 27 5.4 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 • • • S Well Hole Size Depth PPG PV YP FL Comments KBU 41 -6 16 1616 9.05 18 24 9.6 Spud in, drill ahead 1862 9.3 16 17 7.8 Drig to casing point, run surface casing 1862 9.3 12 14 7.2 Cement surface casing 12.25 3431 9.3 12 16 8 Drlg out, displace to FloPro, Run LOT, drlg ahead 5044 9.2 13 17 8.4 Drig to 4206', wiper trip OK, drlg ahead, pump sweeps every 500 ft 6289 9.2 13 19 7.4 Drig 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 Drig 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 Drig 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 • • et►Lr'r Section v — Surface Interval (0' — 2509') Depth Interval 2509' MD (2179' TVD) (16" OH, 13 3/8" Casing) Drilling Fluid System Spud Mud Key Products MI GEL, Gelex, Caustic Solids Control Mongoose shakers, desilter, CD 5500 centrifuge Potential Problems Hole Cleaning, Hole Stability INTERVAL MUD PROPERTIES Depth Plastic Yield API Funnel TVD Mud Wt. Viscosity Point Fluid Loss Viscosity I,t S (ft) (ppg) (cp) (Ib/100ft (m1/30min) (sec /qt.) pii % 2509 8.8 — 9.1 15 -24 >30 <18 60 - 100 8.0 — 9.0 < 6 D Treat drill water with Soda Ash to reduce hardness. D Build spud mud with 20 — 25 PPB M -I Gel to +/- 100 sec.qt funnel viscosity. D Lower funnel viscosity to +/- 60 after gravel zone has been drilled. D Add Gelex as needed to maintain sufficient viscosity for hole cleaning. D Increase funnel viscosity if fill on connections begins to occur. D Reduce fluid loss with additions of Polypac Supreme UL prior to running surface casing. D Add 2 — 5 PPB of MIX 11 to mud system if seepage losses become a problem. D Condition mud prior to cementing casing to reduce yield point and gel strengths. „Yv • Mt SWACO , Hydraulics / Hole Cleaning: Virtual Hydraulics Graphs The following graphs look at the ECD + cuttings at 2509' casing shoe and moving cuttings concentration (MCC) in the annulus while drilling the section. VH SNAPSHOT 49 1995 -2006 M- IL.L.C. Surface 800 GPM MD: 2509 ft Operator: Marathon 'rrwara �o. TVD: 2179 ft Well Nacre: ROD 42-6X VIRTUAL HYDRAULICS' B4 Sae: 16 in Location: Kenal Pane sula (late: 37138009 Cormtry: Alaska Depth Geonetry An Denety hn Hole Clean Pressure DstrDUtbn Va (ft) mono CsgODID (°) (6fgaO (ftMin) ksdex - (%) 9) 5n) 0 45 99 98 92 86 100 0 as 190 VG G F P B6 = 26.7 Ann =2.5 DS= 70.8 r.000 1161111 111111 , 20 1111 11111 IS ' . 1 MIN 1111011111 11.11 1/111 ..d Weg W ter -Base d Mud blgal t950 min in ,. Test Temp 4stam :I F Flow Rate 800 gaNnin BEM ��� 1200 Penetration Rate 150 ft/hr '. Rotary Speed 80 m 1 Weight on 60 15 1rp0001b . —.__— Be Nozzles 15 in ' I I . iii 16W � Pressure Losses I 1 1 j Modified Power Law ■ Drill String 628 psi 1299 _. — Mol 4 3 ;2023 : 02 0 0 psi `- I „ Bit psi Bit O n/Off psi Ann psi� r l ._ - - -_ l im il ai l _ � -- Surf ace Equip 44 psi ' I U -Tube Effect 44 psi 24Ctl it : 1 Total System 1874 psi ESD ECD +Cut f Csg Shoe 9.03 9.13 9.54 .__ j __ i i I - -- ._� TD 9A4 924 9.64 "i 2'AO 1 - ESD a.v.rawaa.t r,aaas — ECD • "' �' 1 - �' eu <zcx roe vao Frn,r}r L:111 i F aHyyd �/�� 7: nl .x k ; ; z i I 1 • SuVI Ask VH HOLE CLEANING nom w ®1995- 2 ILL.C. Surface 8000PM MD: 2509 ft Operator: Marathon ° 1 ' 'Mak o1 M {PLC ND: 2179 ft Well Name: KBU 42 -6X VIRTUA H YDRAULICS* Bit Size: 16 In Kenai Peninsula Date• 3it10009 Cmmtry• Alaska Hole Cleaning Marathon KBU 42-6X 1.00 1:. I I I 1 ; -- Poor Bole .Clea ing I { 0.75. _ x 1 x t c Fair Hole Clean g N 0.50 1 1 ■ o Good lHoleCl >. ing ., x i 0.25 — 1 i - I - ROP 50 ft /hr t i ---- ROP 100 ft /hr Very Good Hol Cleanin — ROP 150 ft /hr i ROP 200 ftlhr t – , c - 800 I =L 1 - - 700 T— # 800 — 900 L Flow Rate (gal /min) 4 i ■ • 0 ■ • • Ft ih rA 9,,,„. Section 5 — Intermediate Interval (2509 7085') Depth Interval 7085' MD (5347' TVD) (12.25" OH, 9 5/8" Casing) Drilling Fluid System FLOPRO FIo -Vis / PolyPac UL / KCI / SafeCarb 40/250/500 / Sack Black / Key Products LoTorq / Caustic Soda / Conqor 404 / Sodium Meta Bisulfate / , Klagard Solids Control Mongoose shakers, desilter, CD 5500 centrifuge Potential Problems Hole Cleaning, Hole Stability, Seepage losses INTERVAL MUD PROPERTIES Depth Plastic Yield API TVD Mud Wt. Viscosity Point Fluid Loss LSRV LGS (ft) (ppg) (cp) (Ib /100ft (mI /30min)_ 1 min Cp pH % 7085 9.1 -9.5 10 -16 12 -18 5 -7 30 -40000 9 -9.5 <6 ➢ Use one rig pit for drilling out surface casing. In other rig pits, build new FIo -Pro fluid. '' ➢ NOTE: LoTorq additions at 3% minimum will be made after mud is sheared down so no losses over shakers. ➢ If running coals become a problem, treat with a 2 -4 PPB addition of Asphasol Supreme and / or Resinex. ➢ Periodic additions of LoTorq will be needed to maintain 3% minimal concentration. ➢ Use stored mud if losses during this hole section. Water back as needed. ➢ Condition mud prior to running 9 5/8" casing. KCI /KLAGARD Formula Caustic .5 ppb Duovis .75 - 1.25 ppb Polypac UL .5 -1.75 ppb 3% KCI 11 ppb Defoam X .25 ppb LoTorq 12 ppb KlaGard 4 ppb SafeCarb (40, 250, 500) 40 ppb Sack Black 5 ppb Conqor 404 1.25 ppb M -I Wate as needed 4 1 1 ,., • Mi 13W1 .. Hydraulics / Hole Cleaning: Virtual Hydraulics Graphs The following graphs look at the ECD + cuttings at 7085' and moving cuttings concentration (MCC) in the annulus while drilling the section. VH SNAPSHOT ©1995- 2006M- LL.C. 'MaMdILL 9Appg@650 GPM MD: 7085 ft Operator: Marathon a m l- - ws�^"-- - C TVD: 5287 ft WellName: KBU 42 -6X VIRTUAL HYDRAULICS* Bt Size: 1225 in Location: KenaiPennsuka flata:3/17/7000 Country: Alecks ■ Depth Geometry An le Density Va Hole Clean Pressure Distribution (ft) h8RVD Csg ODID (1 044 (ft/mkt) Index (%) ( On) 0 45 90 92 86 10.0 0 100 200 VG G F P Bit =45 Ann .9.8 DS =45.1 . 533 I — ■ ■I 000 10 t 0 ■t ' , ■11■■ ■�,■ Drilling Fluid F -- I - -- - Mud Wegh 9. T 61ga1 ■ ■' Test Temp 80 °F 2500 2509 4_ g E 3... ■ ` . i „■ SystemData 1 Flow Rate 450 gaVmin 3mo 1 1.111.1 Penetration Rate 60 ft/hr an0 I Rotary Speed 80 rpm 4500 III j �' Bi t No on Bit 20 1000 lb Bt Nozzles 13.13. 13.13 -3.13- 1 - / .f I 13.0 -0.0.0 p ! Pressure Losses 'f f I 1111 4 �OD I ? I , Modified Power Law 5o0D 5 ■■ ! I 1 I ,� MWD 292 psi :. .1 I MWD 46 psi 0 5503 ° ., I ) Motor 356 psi a / I M0 291 psi - -- { ,� Bt On/Off 100 psi 1 psi ft7aD Ill - ■■ 1 Annulus 64 Surface Equip 18 psi 1 ) I 7 Tu be 6500) /111 I 1 To - tal System 1641 60 p psi si iir I ) z ESD ECD +Cut I� ! ! Csg Shoe 9.45 9.66 990 °-I 7085 12250 ( r : -_— ■� = ® _ I _ _ TD 9A6 9. 69 9.91 I t' - ESD 1/121311 •0 er slur 3.1 F35 +Fra p002) ' 7500 i — ECD , - Frllrr1 ,,,,,i, 5 LIe,,,,,,,,,Y,,,,irU File • KBU 42.6X.MDS F700o I 1 • • . Mai BiAfer�rl VH HOLE CLEANING lhal ©1995- 2006M-ILL.C. 9Appg ©656 GPM MD: 7085 ft Operator: Marathon ._,,,,;,,.. ^+"" maM mMU � ND: 5347 ft Well Name: KBU 42 -6X VIRTUAL HYDRAULICS* Bit S 1225 b Location: Kenai Peninsua net, 311 9DQ09 Cnr nty Alacka _ Hole Cleaning Marathon KBU 42.6X 1.00 - _ __ { _ �. I- i I T ,. i Po or HD . le Cleaging -. i 4 ) i --- - 0.75 r x o le Cleaning I m 0.50 3 , , 1 } e Good Hole C1e ing w I __ I 0.25 — ROP 30 ft/hr ROP 60 ft/hr , 1 - - -- -- - --- IT - -_ Very Good Horn Cleaning — ROP 90 ft /hr { - - -- .. — ROP120ft /hr It _. o — G* ir i I j 400 500 600 700 Flow Rate (gallmin) r• d. L. i s fl I L. i 1 • 1 Section 6 — Production Interval (7085 - 10295') Depth Interval 10295' MD (8557' TVD) (8.5" OH, 3.5" liner) Drilling Fluid System FLOPRO FIo -Vis / PolyPac UL / KCI / SafeCarb 40/250/500 / Sack Black / Key Products LoT / Caustic Soda / Conqor 404 / Sodium Meta Bisulfate / Klagard Solids Control Mongoose shakers, desilter, CD 5500 centrifuge Potential Problems Hole Cleaning, Hole Stability, Seepage losses INTERVAL MUD PROPERTIES Depth Plastic Yield API — TVD Mud Wt. Viscosity Point Fluid Loss LSRV LGS (ft) (ppg) (cp) (Ib /100ft (m1/30min) 1 min Cp pH 10295 9.6 -12.3 16 -25 14 -20 5 -6 30 -40000 9 -9.5 <6 D Use one rig pit for drilling out surface casing. In other rig pits, recondition FIo -Pro fluid from previous hole section D Mud formula will be the same as intermediate section. D NOTE: LoTorq additions at 3% minimum will be made after mud is sheared down so no losses over shakers. D Periodic additions of LoTorq will be needed to maintain 3% minimal concentration. D Condition mud prior to running 3.5" liner. 1 R • • Hydraul / Hole Cleaning: s Virtual Hydraulics Graphs The following graphs look at the ECD + cuttings at 10295' and moving cuttings concentration (MCC) in the annulus while drilling the section. VH SNAPSHOT ®1995 -2006 M-I L.L.C. 723 ppg X450 GPM MD: 10295 ft well Operator. Marathon • •u�xmu +u.c' TVD: 8557 k atre: : Kenai Penk KBU42 -8X ' ikoli VIRTUAL N BkSce:85 L ocatonuule naen• 3 nr ntry Abaka Depth Geonetry An Densky W Hole Clean Pressure Distribution (ft) MDRVD Csg ODN () ( BJgaQ (min) 280 (/) 7 (M1) 6n) 0 45 90 120 128 136 14A D 1 7H0 VG G F P B0 222 Ann 30.1 DS 47. 0 1 11111 100Di s � Wei , I: 11 1 \ : � Sy I . 1111 1 111 1 a Drilling Fluid url I 11111 1 1 1 FLOPRO NT Mu d ght 123 Iblgal t 1111 ITest Temp 80 9 stem Data ' � ) F bw Rate 400 aNnh d IL I -- I Penetration Rate 60 m _ Rotary Speed 60 ftrpr m _i I Weight on Bk 20 1000 lb S a I ' Bk Nozzles 0.7781n' apel j a ] ' j Pressure Losses I IIII I I Modified Power Law 17 945ring 645 psi t: 7083., 96a) _ MW 277 si D P ■ ry t f i f :17t or 198 psi �' I 300 psi —I —I Bk On pff 100 psis 1 Annulus 40 psi I j Surface Equip 24 psi • .. II III I I i U -Tube Effect 1982 pci 30 psi 111111 j I i Total System � ! i I ESD ECD +Cut �� 1 ; Csg Shce 1237 1353 1359 s _ 650 1 ' ��� 1 I TD 1238133 i ( Egg VRDX -V xclm 1.1 Fi5 �FI0 p00 _,_ 07 __.. r . Fr. - xeu uazuoa mon t • • 1 F c VH HOLE CLEANING �" ©1995- 2006M- IL.L.C. 123ppg@450 GPM MD: 10295 8 Operator: Marathon ^"'�' dn. iic TVD: 8557 R WeMame: KBU 42.6X Bit Size: 8.5 in Location: Kenai Peninsula VIRTUAL H hate: 3/17P009 Coonl• Alacka Hole Cleaning Marathon KBU 42 -6X 1.00 ; R 25 ft /hr OP 50 ft/hr R I OP 75 ft /hr 1 — IMP 100 ftlhr Pooi Kole Cleanil g ROP 125 ft/hr . I ! i i -- ROP 15fl 0 /hr 0.75 r I ' L x [ 1 m - - o '° fir Hole!leant CD m 0.50 m U c Good Hole Cleaning ' Mill j j } 0.25 I t `..— I -- j ,_ 1 Very Good Hole leaning ± (} p I 340 360 380 400 420 440 460 480 500 520 5 0 560 FIow Rate (gal /min) I!i • • ivy siAtAw Section 7 — Solids Control Equipment Solids Removal Equipment Recommendations: The recommended SCE for this well are: Mongoose Shakers and Centrifuge Recommended shaker screens sizes are as follows: Interval Recommended Screen Sizes Recommended Screen Sizes (Shaker 1) (Shaker 2) 0 — 2509' (Surface) 110 — 165mesh 110 - -165 mesh 2509 — 7085 (Intermediate) 165 — 230 mesh 165 — 230 mesh 7085 —10295 (Production) 200 — 230 mesh 200 — 230 mesh • • • Section 8 — Summary of Cost and Product Usage 16 in Hole Sections (2509 ft.) Product Unit Size ( Units Required I Section Cost M -I Gel 50 # Sx. 909 Caustic Soda 50 # Sx. 11 Gelex 2# Sx. 17 Polypac Supreme 50# Sx 11 CF Desco 25# Sx. 9 Soda Ash 50# Sx 1 Sodium Bicarbonate 50# Sx. 9 Total Estimated Product Cost $16,000 12.25 in Hole Section (2509 ft. - 7085 ft.) Product Unit Size Units Required Section Cost M -I WATE 50 # Sx. 284 Sack Black 50 # Sx. 284 SafeCarb (40,250,500) 50 # Sx. 2275 Soda Ash 50 # Sx. 14 Caustic Soda 50 # Sx. 28 PolyPac UL 50 # Sx. 85 .f FloVis 50 # Sx. 171 Sodium Metabisulfite 50 # Sx. 28 Defoam X 5 gal 16 KlaGard 55 gal 26 LoTorq gal 4290 KCL 50# Sx. 569 GSeal 25# Sx. 114 Conqor 404 55 gal 8 Total Estimated Product Cost $273,206 • Mt SWACC 8.5 in Hole Section (7085 ft. - 10295 ft.) Product I Unit Size ( Units Required I Section Cost M -I WATE 50 # Sx. 3132 Sack Black 50 # Sx. 42 SafeCarb (40,250,500) 50 # Sx. 313 Soda Ash 50 # Sx. 10 Caustic 50 # Sx. 20 PolyPac UL 50 # Sx. 26 FloVis 50 # Sx. 42 Sodium Metabisulfite 50 # Sx. 10 Defoam X 5 gal 6 Conqor 404 55 gal 5 KlaGard 55 gal 9 LoTorq gal 1320 KCL 50# Sx. 167 Bicarb 50# Sx. 10 Total Estimated Product Cost $97,907 • • • Summary of Product Cost and Engineering for P10, P50, P9O Estimated Drilling Fluid Related Costs Engineering Depth Interval Costs Interval Cumulative (ft) Product Costs ($) Days Cost Cost ($) ($) ($) Surface $16,000 $6,480 6 $22,480 $22,480 Intermediate $273,206 $9,720 9 $282,926 $305,406 Production $97,907 $7,560 7 $105,467 $410,873__ Completion $8,604 $3,240 3 $11,844, $422,717 P10 P50 P9O Total Estimated Product and Engineering Cost $295,901 25 $422,717 $549,532 P10: Utilizing used fluids with no hole or other problems P50: Utilizing new fluids with no significant hole or mechanical problems P90: Utilizing new fluids with significant hole or mechanical problems, excessive lost circulation or change of Scope • • Appendix 1 — Lost Circulation Recommendations Lost Circulation / Seepage Action plan: ❑ Have sufficient sized LCM on rig to begin interval. It takes 40 ppb of sized calcium carbonate to make a filter cake with this plugging material. Use in combination with 5 ppb Sack Black and Mix I1 at 5 ppb. ❑ Recommend hourly addition of LCM to keep a concentration in the system at all times. The addition of SafeCarb (40,250,500), G -Seal (graphite) and Sack Black can be adjusted as needed to combat losses. ❑ The particle size of the LCM is important. If the expected loss zone particulars are known, then plan to have LCM to offer a particle size distribution so the majority of the LCM has a D50 to cover 1/3 the expected pore throat size and a D90 of cover the pore throat size. The D90 material s hould make up 10% of the total LCM ppb pumped. ❑ Coordinate spotting and wait time for LCM pills if losses are over 60 bph. ❑ The majority of losses can happen when running casing, circulating to cement and while cementing. The use of Virtual Hydraulics surge calculations is recommended to establish safe casing running speeds. The use of open -float and bypass tools should be considered to help minimize surge pressures to formation. fib, • • NI Q. Appendix 1 — Lost Circulation Recommendations The following proactive lost circulation decision tree can be modified to include any contingencies that Marathon requires. The flowchart allows for planning of lost circulation material needs. Losing fluid while drilling I Measure rate of loss 1 1 Seepage losses Partial losses Severe losses 5 - 20 bbl /hr 20 -60 bbl /hr 60 — 200 bbl /hr or Total loss of returns • 1 If fault related drill across fault If fault related drill across fault If fault related drill across fault 1 -1.5 times the length of the 1 -1.5 times the length of the 1 -1.5 times the length of the throw before treating losses throw before treating losses throw before treating losses 1 l 1 Spot 50 ppb pill *: Spot 80 ppb pill: Contact Drilling / G -SEAL 5 ppb _ No success G -SEAL 15 ppb _ No success j Asset Engineer SAFE CARB 40 15 ppb -► M -I -X II C 20 p for approval SAFE CARB 250 15 ppb SAFECARB 250 IS ppb SAFE CARB 500 10 ppb Magma Fiber 10 ppb Pump thru BHA Circ sub required Spot 100 ppb pill Circ sub required G -SEAL 15 ppb SAFE CARB 40 15ppb SAFE CARB 250 30 ppb SAFECARB 500 30 ppb Magma Fiber Reg 10 ppb l _ Squeeze high- fluid -loss pill *: FORM - SQUEEZE 80 ppb (2sx/bbl) in water Weighted up to desired density Pump thru BHA I 3 hio success Spot plug: Gunk Squeeze or FORM -A -SET AK • . Appendix 2 — Minimum Time to Circulate Prior To POOH The model simply predicts the minimum flow rate required for adequate cuttings transport. No predictions are available for the rate at which cuttings are removed. Because the cuttings move more slowly than the circulating mud, it is essential that sufficient bottoms -up are circulated prior to tripping. A SINGLE BOTTOMS -UP IS NEVER ENOUGH! The minimum on bottom circulation time prior to tripping will be influenced by hole size, inclination and flow history (i.e. mud properties and flow rate). These factors will affect the height of any residual cuttings beds. Recent work by Exxon has indicated that the volume of cuttings - left behind during normal drilling operations can be considerable. They recommend selection of bits/BHAs with large bypass areas to facilitate tripping out of the hole. Before tripping, monitor the shakers to ensure the cuttings return rate is reduced to an acceptable background level. The figures in the table below are guidelines based on simple slip velocity considerations and field experience: WELL INCLINATION SECTION LENGTH FACTOR RANGE 17 -1/2 inch HOLE 12 -1/4 inch HOLE 8 -1/2 inch HOLE. 0 - 10° 1.5 1.3 1.3 1 0 ° 30 1.7 1.4 1:4, 30 - 60 2.5 1.8 1.6 60 + 3.0 2.0 1.7 Procedure 1. Effective length = Section length x section length factor. 2. Circulation time = Effective Length x B/U Measured depth at Bit Example Since in practice not all of the section back to surface will be deviated at the same angle, the overall minimum circulation time prior to tripping should be apportioned in direct relation to the relative lengths of ,section at each angle. ,fix • • Appendix 3 — HSE Issues Safety Recommendations for Mud System 1. The rig crew should be briefed on the makeup of the drilling fluid and its cost. Safety and care' should be used when drilling with any drilling fluid. An M -I Engineer will brief rig crews about drilling fluid and basic safety procedures. 2. MINIMIZE contact with the drilling fluid; although it's non - toxic, it can irritate skin. 3. Wear personal protective equipment when you must work with the mud. P roper equipment includes: a. Safety glasses or goggles b. Hard hat c. Steel toed boots or shoes (recommend rubber for shaker and drill crew). d. Protective clothing (disposable suits or slicker suits) e. Barrier cream f. Rubber gloves Note: As always, follow the rig and operator's safety rules. 4. If you get mud on your skin, wash it off as soon as possible. Do not allow mud to stay in contact. with your skin for longer than 30 -40 minutes. Do not wash with rig soap! U GOJO mechanics degreaser or other similar type product. 5. If clothing becomes saturated with drilling fluid, then change your clothes. IDO not c(, ntinue to work in clothes saturated with mud. 6. Designate one rig washing machine for muddy clothes. Do not wash other clothes in this machine. 7. Protective Equipment that has worked well on other jobs: a. Disposable suites: TYVEK BRAND b. Rubber boots: GOODALL BRAND POLY GRIP BOOTS MODEL #A1541 c. Coverall pants: GOODALL ARMOR LITE OVERALL, MODEL #C2522 d. Coverall Jacket: GOODALL ARMOR LITE JACKET, MODEL #C2520 8. Common sense when working with drilling fluid will prevent any safety problems. If you get drilling fluid on you, wash it off. If you have to work with or around the mud, wear your protective equipment. Watch your step and clean up any spills. yr; t.:. • Appendix 4 — Recommended Drilling Practices A. Operational Procedures: 1. Stage into open hole several increments breaking circulation each time, and circulating for a period of time to get the fluid moving. 2. Idle pumps when beginning circulation to minimize surge pressures 3. Work pipe and rotate while circulating to help break up gel strengths 4. Look for signs of barite sag when staging in the hole. Light mud near thee riser section could be indicative of a sag problem. If sag is a problem, the depth increment for staging might have to be shortened to prevent lost circulation problems. Deviated holes will have a tendency to aggravate barite sag problems. These type sections may require higher yield points or low shear rate viscosities than the above recommended ranges to compensate for this tendency. �a. 1 1lllii Appendix 5 — Contact information Contact Title e-mail Work Cellular Pete Berga Drilling Superintendent pkberga @marathonoil.com 907 565 -3032 907 231 -0663 Marathon Will Tank Drilling Engineer wjtank @marathonoil.com 713,296 -3273 713 203- 839 Marathon Jim Dwyer Project Engineer jdwyer @miswaco.com 907 646 -3233 907 317 -4556 MI SWACO Bob Myles Warehouse Manager rmyles @miswaco.com 907776 -8722 907 252 -4218 MI SWACO Oliver Amend Field Engineer oamend @miswaco.com 907283 -0895 907 398-9474 MI SWACO (home) Jim Brown Field Engineer Miswacogdrl @hotmail.com 907 398 -8 MI SWACO John Nicholson / Dan Drilling Foremen alaska_drilling @marathonoil.com 907 28 -1312 Byrd Marathon Appendix 6 — Responsibilities ➢ MI Project Engineer and will coordinate daily between the Marathon office, rig, warehouse, and the M -I SWACO 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 per hole section and 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. • • Page 1 of 2 Maunder, Thomas E (DOA) From: Maunder, Thomas E (DOA) Sent: Wednesday, March 25, 2009 2:22 PM To: 'Tank, Will' Cc: 'Berga, Pete'; 'Anderson, Gene' Subject: RE: KBU 42 -6X Will, Thanks for the information. I did refer to the operations on 41 -18X and I see the similarity. My questions are answered. I forwarded the survey file on and we have the information we need. Tom Maunder, PE AOGCC From: Maunder, Thomas E (DOA) Sent: Wednesday, March 25, 2009 9:01 AM To: Tank, Will' Cc: Berga, Pete; Anderson, Gene Subject: RE: KBU 42 -6X Thanks Will. I will have a look at your responses. Regarding the directional plan, the electronic copy should fit the need. I will advise if otherwise. Tom Maunder, PE AOGCC From: Tank, Will [mailto:wjtank @marathonoil.com] Sent: Wednesday, March 25, 2009 8:56 AM To: Maunder, Thomas E (DOA) Cc: Berga, Pete; Anderson, Gene Subject: RE: KBU 42 -6X Tom, Pete answered question 2, but I've attached the file that you should have on the CD. Let me know if you need another CD. For question 1: Our tentative spud date for KBU 42 -6X is sometime early in April. We were trying to get the permits in place by the end of the month to be ready when we get all of our timing issues resolved. We are still trying to determine the exact timing of the rig improvements (based on equipment delivery) and the remaining well work, so that we don't have another shut down in the middle of the work plan. Right now we would drill KBU 42 -6X, then go to rig upgrades (maybe 4 weeks), then to a Kenai well on pad 41 -18 (KBU 21 -18), and finally to Falls Creek for a well. This would complete our rig work for the year in the middle of August. For question 3: I've done a review of the pore pressure / frac gradient profile that we utilize in our drilling software that helps me develop the drilling program. For 3 a: The depth of the surface casing on this well is deeper than most of our KBU wells due to the directional plan needed to hit the targets we have on this well. Essentially, the surface location is on the South end of Pad 41 -7, yet the targets are fairly far north of the pad and the directional plan needs to safely "snake through" all the existing well paths. 3/25/2009 Page 2 of 2 Concerning both 3 a and 3 b, these changes that you see in pore pressure and frac gradient I believe is a little more reflective of reality. Our drilling process in the Kenai Gas Field is to drill and set an appropriate amount of surface casing (minimum 1,300' TVD State requirement for KGF), drill through all of the extremely pressure depleted Sterling and Upper Beluga sands and set intermediate casing to isolate those zones from the production zones whose tops are just a bit below these Upper Beluga sands. We know that the depleted sands are at 1 - 1.5 ppg, and that the other sands are 6.5 - 7 ppg. We also lower the frac gradients in these very low pore pressures from around 15 ppg to 12.5 - 13 ppg. The way I had the pore pressure and frac gradient profiles in our casing design software, they would show our pore pressure at the shoe as 1.5 ppg and the frac gradient at the lower 13 ppg. Intermixed in the low pressure sands are the more normally pressured sands, so I don't believe the MASP calculations should utilize 1.5 ppg, but should use 7 ppg. This causes the MASP for surface to be higher. I also think this slight change gives a better value to the frac gradient at the intermediate shoe. For 3 c: This well will be drilled to the Tyonek 84 -6 sand which has shown in wells such as KBU 41 -18X that a pore pressure around 12.1 ppg will be seen. This particular sand does not have a huge coverage area in the KGF, so only a select number of wells have been planned to drill for that sand. This well is more like KBU 41- 18X, than KBU 11 -17X in that regard. If you have any additional questions, please let me know. Thanks, Will Tank From: Berga, Pete Sent: Wednesday, March 25, 2009 9:35 AM To: Maunder, Thomas E (DOA); Tank, Will Subject: RE: KBU 42 -6X The CD was in with the applications. From: Maunder, Thomas E (DOA) [mailto:tom.maunder @alaska.gov] Sent: Tuesday, March 24, 2009 3:33 PM To: Tank, Will; Berga, Pete Subject: KBU 42 -6X Will and Pete, I am examining the permit application for this well and have some questions. 1. Is the tentative spud date still 3/29? 2. Was the CD of directional information included? I don't find one. 3. Comparing this application with that of KBU 11 -17X, I have found some differences. a. Since the surface casing is being set deeper in 42 -6X, it is not surprising that the MASP would be greater. b. The intermediate casing of 42 -6X is being set - 90' tvd shallower than in 11 -17X, but the fracture gradient for 42 -6X is 2 ppg greater (15.0 vs 13.0). It seems unusual that the FG would be so different in the same area. Would you reconcile the difference? c. The TD of 42 -6X is - 780' tvd deeper than 11 -17X, but the expected BHP is - 2 ppg greater. Would you confirm the pressure information? Are the changes in the values based on the drilling information from 11 -17X? Thanks in advance, Tom Maunder, PE AOGCC 3/25/2009 • • TRANSMITTAL LETTER CHECKLIST WELL NAME XZu ' 4 2-6X PTD# v?Oy 24/O Development Service Exploratory Stratigraphic Test Non-Conventional Well FIELD: /eeN,.E!/ V 4S POOL: /�QuG� G/ 7 3/04/ed Circle Appropriate Letter / Paragraphs to be Included in Transmittal Letter CHECK ADD -ONS WHAT (OPTIONS) TEXT FOR APPROVAL LETTER APPLIES MULTI LATERAL The permit is for a new wellbore segment of existing well (If last two digits in Permit No. , API No. 50- - - API number are between 60 -69) Production should continue to be reported as a function of the original API number stated above. PILOT HOLE In accordance with 20 AAC 25.005(0, all records, data and logs acquired for the pilot hole must be clearly differentiated in both well name ( PH) and API number (50- - - ) from records, data and logs acquired for well SPACING The permit is approved subject to full compliance with 20 AAC EXCEPTION 25.055. Approval to perforate and produce / inject is contingent upon issuance of a conservation order approving a spacing exception. assumes the liability of any protest to the spacing exception that may occur. DRY DITCH All dry ditch sample sets submitted to the Commission must be in SAMPLE no greater than 30' sample intervals from below the permafrost or from where samples are first caught and 10' sample intervals through target zones. Non - Conventional Please note the following special condition of this permit: Well production or production testing of coal bed methane is not allowed for (name of well) until after (Company Name) has designed and implemented a water well testing program to provide baseline data on water quality and quantity. (Company Name) must contact the Commission to obtain advance approval of such water well testing program. Rev: 1/11/2008 it i' Field & Pool KENAI, UP TYONEK BELUGA GAS - 448571 Well Name: KENAI BELUGA UNIT 42 -6X Program DEV _ Well bore seg ❑ PTD#: 2090400 Company MARATHON OIL CO _ — — Initial Class /Type DEV / PEND GeoArea 820 Unit 51120 On /Off Shore On Annular Disposal ❑ Administration 1 Permit fee attached NA 2 Lease number appropriate Yes 3 Unique well name and number Yes 4 Well located in a defined pool Yes 1 5 Well located proper distance from drilling unit boundary Yes 1 6 Well located proper distance from other wells Yes 7 Sufficient acreage available in drilling unit Yes 2494 acres. 18 If deviated, is wellbore plat included Yes 9 Operator only affected party Yes 10 Operator has appropriate bond in force Yes Blanket Bond 5194234. 11 Permit can be issued without conservation order Yes Appr Date 12 Permit can be issued without administrative approval Yes 13 Can permit be approved before 15 -day wait Yes ACS 3/23/2009 14 Well located within area and strata authorized by Injection Order # (put 10# in comments) (For NA IP 15 All wells within 1/4 mile area of review identified (For service well only) NA 16 Pre - produced injector: duration of pre production less than 3 months (For service well only) NA 17 Nonconven. gas conforms to AS31.05.030(j.1.A),(j.2.A -D) NA 18 Conductor string provided Yes Engineering 19 Surface casing protects all known USDWs Yes 20 CMT vol adequate to circulate on conductor & surf csg Yes 21 CMT vol adequate to tie -in long string to surf csg No 3 -1/2" production string will be cemented into 7" intermediate casing. 122 CMT will cover all known productive horizons Yes 23 Casing designs adequate for C, T, B & permafrost Yes 24 Adequate tankage or reserve pit Yes Rig equipped with steel pits. No reserve pit planned. All waste to approved disposal well(s). 25 If a re-drill, has a 10 -403 for abandonment been approved NA 126 Adequate wellbore separation proposed Yes Proximity analysis performed. Close approaches identified. Traveling cylinder path calculated. 27 If diverter required, does it meet regulations Yes Appr Date 28 Drilling fluid program schematic & equip list adequate Yes Maximum expected formation pressure 12.1 EMW. MW planned up to 12.3 ppg. TEM 3/25/20 29 BOPEs, do they meet regulation Yes Marathon requests to employ on 1 pipe ram due to height restrictions and clearance needed to run completion. 3 .. 30 BOPE_ press rating appropriate; test to (put psig in comments) Yes MASP calculated at 3156 w/ 30% gas -70% mud. MASP w/ .1 psi /ft 4528 psi. 3500 psi BOP test planned. 31 Choke manifold complies w /API RP -53 (Ma 84) Yes / / /-- -� 32 Work will occur without operation shutdown Yes 33 Is presence of H2S gas probable No 1 34 Mechanical condition of wells within AOR verified (For service well only) NA 35 Permit can be issued w/o hydrogen sulfide measures Yes Geology 36 Data presented on potential overpressure zones NA Appr Date 37 Seismic analysis of shallow gas zones NA ACS 3/23/2009 38 Seabed condition survey (if off - shore) NA 39 Contact name /phone for weekly progress reports [exploratory only] NA Geologic Engineering Public I Commissioner: Date: Commissioner: Date C...., .ner Date Cgie 3 .25-65 A 1 • • Well History File APPENDIX E I I Information of detailed nature that is not particularly germane to the Well Permitting Process but is part of the history file. To improve the readability of the Well History file and to simplify finding information, information of this nature is accumulated at the end of the file under APPENDIX. No special effort has been made to chronologically organize this category of inforii ation. • MARATIION KBU 42 -6X SEC 7 - T4N - R11W SM April 16, 2009 — May 5, 2009 S ! • • � 'tr X4- wt i r, • - ... ` vt - Craig Silva: Senior Logging Geologist Ralph Winkelman: Senior Logging Geologist Ell EPOCH • �.a ■ccu aba M MARATHON OIL COMPANY KBU 42 -6X TABLE OF CONTENTS 1 MUDLOGGING EQUIPMENT AND CREW 2 1.1. EQUIPMENT SUMMARY 2 1.2. PERSONNEL 2 2. GENERAL WELL DETAILS 3 2.1. OBJECTIVES 3 2.2. WELL RESUME 3 2.3. HOLE DATA 3 3. GEOLOGICAL DATA 4 4. DRILLING DATA 10 4.1. DAILY ACTIVITY SUMMARY 10 4.2. SURVEY RECORD 20 4.3. MUD RECORD 25 • 4.4. BIT RECORD 27 4.5. DRILLING PROGRESS CHART 28 5. DAILY REPORTS 29 Enclosures: 2 "/100' Formation Log (MD and TVD) 2 "/100' Drilling Dynamics (MD and TVD) S 1 Li EPOCH �M� MARATHON OIL COMPANY KBU 42 -6X • 1 MUDLOGGING EQUIPMENT AND CREW 1.1. EQUIPMENT SUMMARY Parameter Equipment Type And Position Total Comments Downtime Low gas readings are pervasive due to the Standard Air Drive Trap Mounted In immediate pre-shearing ali s14" straight of p return mud. Falls 14" straight Ditch Gas Possum Belly; FID Total Hydrocarbon down through an air gap as it Analyzer And Chromatograph exits the flowline and impacts the fluid of a tiny possum belly in a wide splash, before reaching the gas trap. Rate of Penetration (ROP) Primary Drawworks Shaft Encoder On 0 Drum Shaft Pump stroke counters Externally Mounted Magnetic Proximity 0 Sensor Hookload / Weight on bit (WOB) Hydraulic Pressure Cell 0 Drill string torque Hydraulic Pressure Cell 0 Top drive rotary (RPM) Externally Mounted Magnetic Proximity 0 Sensor Standpipe Pressure Hydraulic Pressure Cell 0 Mud flow in / out (MFI / MFO) MFI Derived From SPM / MFO From 0 Flow Paddle Pit volumes Ball and probe sensor 0 • Driller's work station Explosion Proof Touch Screen 0 Casing Pressure Hydraulic Pressure Cell 0 Company man's work station HP COMPAQ 0 Mud Engineer's work station HP COMPAQ 0 Living quarter's work station HP COMPAQ 0 Pit's work station Explosion Proof Touch Screen 0 1.2. PERSONNEL KBU 42 -6X Unit Number: ML006 Mudloggers Years D ay s Sample Catchers/ Days Technician Days Experience well Trainees well well Craig Silva 31 28 Sameer Baral 5 Steve Forrest 1 Ralph Winkelman 18 22 Emil Opitz 8 III [l EPOCH 2 III M MARATHON OIL COMPANY KBU 42 -6X • 2. GENERAL WELL DETAILS 2.1. OBJECTIVES The objective of KBU 42 -6X is to drill and log a Multi Zone Development Gas well in the Kenai Gas Field with a minimum of hole problems or other concerns. An EXCAPE completion will be performed. 2.2. WELL RESUME Operator: MARATHON OIL COMPANY Well Name: KBU 42 -6X Field: Kenai Gas Field County: Kenai Borough State: Alaska Company Representatives: Rowland Lawson Mitch Burns Dan Byrd John Nicholson Location: 537' FNL, 1036 FEL, Sec 7 T4N R11W SM, X= 274864.686, Y= 2361477.285 Classification: Multi Zone Development Gas API #: 50 — 133 — 20586 — 00 — 00 Permit #: 209 - 040 Activity Code: (WBS #s) DD.08.18993.CAP.DRL Rig Name / Type: Glacier #1 / Land / Double Elevation: Ground, RKB 65.70'GL, 89.36' RT Primary Targets: / Target Depths: Middle Beluga: (7104', 5383' TVD), Lower Beluga: (7910', 6189' TVD) Primary Targets: / Target Depths Tyonek: (8960', 7239' TVD), Tyonek 84 -6 (10108', 8387' TVD) • Spud Date: April 16, 2009 Total Depth 10278' Total Depth Formation: Tyonek Total Depth Date: May 05, 2009 MWD Company: / Tools Run: Baker Hughes Inteq / Directional MWD Directional Drilling: Baker Hughes Inteq Drilling Fluids Company: M -I Drilling Fluids Logging Companies: Weatherford Wireline Services: Quad -Combo and MFT logs on wireline. 2.3. HOLE DATA KBU 42 -6X Hole Maximum Depth T.D. Mud Deviation Shoe Depth F.I.T. Section MD SSTVD Formation Weight ( inc) Casing MD SSTVD EMW 16" 2520' 2084.38' Sterling 9.4 51.65 13 3/8" 2508' 2076.72' 13.0 12.25" 7105' 5295.07' Beluga 9.6 0.92 9 5/8" 7091' 5281.07' 13.0 8'h" 10278' 8467.91' Tyonek 11.4 1.03 3 %" 10244' 8433.92' EXCAPE Y Completion Li EPOCH 3 ( ) MARATHON OIL COMPANY KBU 42 -6X 3. GEOLOGICAL DATA Sand (7105'- 7220) = medium to medium light gray overall with individual grains dominantly light to medium gray, clear to translucent quartz and volcanic glass, medium to dark gray, black, trace light bluish gray and greenish gray, dusky red to rust; fine lower to scattered very coarse upper, dominantly medium lower to upper; angular to subangular; poor to fair sorting; disaggregated with trace very light gray clayey/ ashy supporting matrix; non calcareous; trace thin coal/ carbonaceous shale beds. Sand (7220'- 7300) = medium to medium light gray overall with individual grain dominantly clear to translucent quartz and volcanic glass, light to medium gray trace dark gray to black, Tight to medium greenish gray; fine lower to medium upper, dominantly fine upper to medium lower; fair to good sorting; disaggregated with trace light gray ashy /clayey supporting matrix; very soluble; non calcareous; trace thin coal /carbonaceous material/ shale. Tuffaceous Claystone/ Tuffaceous Siltstone (7240'- 7360') = medium to medium light gray; soft to slightly firm; irregular shaped cuttings; silty to clayey texture; dull, earthy luster; very soluble; non to slightly expansive when hydrated; poor adhesiveness; poor to fair cohesiveness; non calcareous; note that a majority of clay dissolves into the mud system. Sand (7300'- 7420') = medium to medium light gray overall with individual grain dominantly clear to translucent quartz and volcanic glass, light to medium gray trace dark gray to black, light to medium greenish gray; fine lower to medium upper, dominantly fine upper to medium lower; fair to good sorting; disaggregated with trace light gray ashy /clayey supporting matrix; very soluble; non calcareous; trace thin coal /carbonaceous material/ shale. Tuffaceous Claystone / Tuffaceous Siltstone (7380'- 7480') = medium to medium light gray; soft to slightly firm; irregular shaped cuttings; silty to clayey texture; dull, earthy to slightly sparkly luster; very soluble; poor adhesiveness; poor to fair cohesiveness; non calcareous trace black micro -thin carbonaceous laminations and particles. Sand/ Sandstone (7420'- 7800') = medium gray overall, but varying lightness values from medium light gray to medium dark gray; fine lower to coarse upper; mostly moderately sorted in medium lower to coarse lower range; note mixed light and dark gray coloration with size increase; discernible subtle fining upward in the more sand massive sections; note constant very minor fraction of very fine lower to silt size that is all glass shards winnowed from volcanic ash, and appears to be inter -grain material of coarser sands; trace to spotty consolidated pieces that appear matrix supported by soft tuffaceous claystone; rare individual pieces are grain supported and calcite cemented, and may be larger individual lithic clasts; angular to subangular, subdiscoidal to discoidal; consistent very minor fraction of subspherical, rounded grains; very dominantly disaggregated; inter -grain clays are soluble; lithic arenite to compositional graywacke; estimate 50 -75% quartz and volcanic glass grains; trace feldspar, 5 -15% various cryptosilica (chalcedony, chart) and other undifferentiated siliceous grains and rock particles, 25 -40% lithics and mafic minerals; lithics dominated by medium gray to medium dark gray phyllite rock fragments, with minor dark gray strongly associated argillite rock fragments and very minor light green to grayish green to variegated green low grade metamorphic greenstone rock fragments; mafic minerals largely undifferentiated but discernible augite and biotite; note apparent magnetite ( attracted to probe) and probable phlogopite (dark "goldish" brown color); last 5 -10% of lithics fraction from diverse sources. El EPOCH 4 )90. MARATHON OIL COMPANY KBU 42 -6X 11) Tuffaceous Claystone /Tuffaceous Siltstone/Volcanic Ash (7480'- 7900') = all associated tuffaceous lithologies derived from volcanic ash, are closely gradational to each other, and share many characteristics; often appears as reworked clayey - silty- ashy -sandy tuffaceous mudstones with only minor differences in texture and composition; tuffaceous claystone is the dominant overall fraction, and is the pervasive soluble supporting matrix of the disaggregated sands; dominant medium gray to light grayish brown, but also many subtle variations of gray and brown primary colors and secondary hues; most of the least disturbed and reworked volcanic ash is very light gray; clayey to silty to ashy to various soft matte and mixed textures; occasionally grainy texture when grading to tuffaceous sandstone; mostly soft to slightly firm or slightly brittle, locally moderately brittle -firm and occasionally very brittle to marginally hard as calcareous tuff; some tuffaceous mudrocks are carbonaceous in part, and display micro -thin carbonaceous laminations and microparticles. Sand/ Sandstone/Tuffaceous Sandstone /Conglomeratic Sand /Conglomerate (7800'- 8100') = medium gray overall, often with faint light olive gray secondary hue; note varying lightness values from medium light gray to medium dark gray; local light grayish brown secondary hue, especially with increased carbonaceous material; fine lower to granule; mostly within medium lower to coarse lower range; continued mixed light and dark gray coloration as size increase; discernible fining upward when massive; consistent very minor fraction very fine lower to silt size glass shard winnowed from volcanic ash, that appears to be inter -grain support material of coarse sandstone; spotty consolidated sandstone that appears matrix supported by soft tuffaceous claystone; trace individual pieces are grain supported with calcite cementation; also note trace lithic sandstone; angular to subangular, subdiscoidal to discoidal; with constant very minor fraction of subspherical, rounded grains; very dominantly disaggregated; inter -grain clays are soluble; lithic arenite to compositional graywacke; estimate 50 -75% quartz and volcanic glass grains; trace feldspar, 5 -15% various cryptosilica (chalcedony, chert) and other undifferentiated siliceous grains and rock particles, 25 -40% lithics and mafic minerals; lithics dominated by medium gray to medium dark gray phyllite rock fragments, with minor dark gray strongly associated argillite rock fragments and minor light green to grayish green to variegated green low grade metamorphic 411 greenstone rock fragments; mafic minerals largely not differentiated but discernible augite, biotite, magnetite; probable phlogopite (dark "goldish" brown color); last 5 -10% of lithics from diverse sources; note distinctive lithic calcareous tuff, and pale brown translucent cryptosilica; locally common clastic coal. Tuffaceous Claystone /Tuffaceous Siltstone (8080'- 8200') = medium to medium light gray with light greenish gray secondary hues; soft; irregular, subrounded cuttings; silty to clayey texture; dull to earthy luster; moderate to very soluble; moderately expansive when hydrated poor adhesiveness; poor to fair cohesiveness; non calcareous; trace dark brown to black micro -thin carbonaceous laminations and particles. Carbonaceous Shale /Coal (8160'- 8240') = dark brown to black; slightly firm to hard; pliable at times; irregular to blocky and platy cuttings; smooth to silty texture; dull to earthy luster; planar fracture dominant; trace visible outgassing bubbles. Sand /Sandstone (8180'- 8320') = medium to medium light gray overall with light greenish gray secondary hues, individual grains dominantly clear to translucent quartz and volcanic glass, light to medium gray, greenish gray, trace dark gray to black, white and bluish green; fine lower to very coarse upper, dominantly medium upper to lower; angular to subangular; poorly sorted; dominantly disaggregated with trace very fine sandstone; light gray; friable; moderate to very calcareous; commonly grading to a silty sandstone/ sandy siltstone; trace black carbonaceous material/ coal. Tuffaceous Claystone /Tuffaceous Siltstone (8260'- 8440') = medium to medium light gray with light greenish gray secondary hues; soft; irregular, subrounded cuttings; silty to clayey texture; dull to earthy luster; moderate to very soluble; moderately expansive when hydrated poor adhesiveness; poor to fair cohesiveness; non calcareous; trace dark brown to black micro -thin carbonaceous laminations and particles; trace thin coal beds 411 El EPOCH 5 M MARATHON OIL COMPANY KBU 42 -6X Sand /Sandstone (8320'- 8440') = medium to medium light gray with a moderate salt and pepper appearance, individual grains dominantly clear to translucent quartz and volcanic glass, light to medium gray and greenish gray, dark gray to black, trace white and bluish green; very fine lower to trace very coarse upper, dominantly fine lower to medium lower; angular to subangular; moderately well to very well sorted in fine to medium, poorly sorted in coarse; dominantly disaggregated with trace very fine, light gray sandstone; firm to friable; very calcareous cement; commonly grading between a sandy siltstone and silty sandstone; trace coal /carbonaceous shale. Sand/ Sandstone/ Tuffaceous Sandstone/ (8440'- 8980') = medium gray to medium dark gray; generally with faint to locally strong light olive gray secondary hue; lightness values locally shift to medium light gray; some light grayish brown to brown secondary hues when increased clays and /or carbonaceous material; very fine upper to medium lower; dominantly fine upper just below medium cutoff; range from moderately well sorted to moderately poor sorting when spotty coarse and larger grains are present; discernible fining upward when massive; constant minor fraction of very fine lower to silt size shards winnowed from volcanic ash that are, in part, inter -grain supporting material of sandstones; most consolidated sandstone appears matrix supported by soft tuffaceous claystone, but note locally abundant sandstone is grain supported by mix of calcite and silica cementation; also note abundant sand supported by complex mix of clay, shards devitrified shards, cements and micro rock particles; angular to subangular, subdiscoidal to discoidal, with constant very minor fraction of subspherical rounded grains; mostly disaggregated, but locally abundant consolidated; inter -grain clay is usually soluble; volcanic ash supported sandstone grades to very sandy claystone; lithic arenite to compositional graywacke; estimate 60 -75% quartz and volcanic glass grains; trace feldspar, 5 -15% various cryptosilica (chalcedony, chert) and other undifferentiated siliceous grains and rock particles, 20- 35% lithics and mafic minerals; lithics dominated by medium gray to medium dark gray phyllite rock fragments, with minor dark gray strongly associated argillite rock fragments and minor light green to grayish green to variegated green low grade metamorphic greenstone rock fragments; mafic minerals mostly non - differentiated but discernible augite, biotite, magnetite; probable phlogopite (dark "goldish" brown color); last 5 -15 %of lithics from diverse sources; note distinctive lithic calcareous tuff, and pale brown translucent cryptosilica; locally common clastic coal. Coal /Carbonaceous Shale (8240'- 8900') = very common occurrence as micro -thin layers in sandstone and claystone; note increased carbonaceous layers and general increase in carbonaceous tuffaceous claystone as thicker coals are approached; significant fraction of carbonaceous shale is grading to lowest grade lignite; black to brownish black to very dusky brown; coals are brittle - fragile to brittle -tough to marginally hard; carb shales /clays are firm to locally soft; range from low grade lignite to sub - bituminous; smooth to dense matte texture; some shales and softer coals have organic -dense woody texture; dull and earthy to resinous and vitreous lustres; dominantly thin platy to irregular fracture, but locally dominant subconchoidal to conchoidal and birdeye fracture; many of the "best" coals have alternating zones of different coal grades; some hard coal has discernible cleating; many coal pieces have visible outgassing. Tuffaceous Claystone/Tuffaceous SiltstoneNolcanic Ash (8440'- 8960') = tuffaceous lithologies are all derived from volcanic ash, closely gradational and share many characteristics; appears as reworked tuffaceous mudstone with variations in clay - silt -ash content, texture and color; tuffaceous claystone is the dominant fraction and also the pervasive, often soluble supporting matrix of most sandstones; dominant medium gray to light grayish brown, but many close variations of gray and brown primary color and secondary hues; less disturbed volcanic ash is very light gray; clayey to silty to ashy to various soft matte and mixed textures; locally grainy when grading to tuffaceous sandstone; mostly soft to slightly firm /brittle, local mod firm /brittle; dominantly earthy lustre; microsparkly when abundant shards. El EPOCH 6 au MARATHON OIL COMPANY KBU 42 -6X Sand /Sandstone (8980'- 9100') = note subtle changes in overall appearance after 8980'; same overall medium gray color, but slightly more homogenous overall, with less faint light olive gray secondary hue; contrasting the gray color are very Tight gray to white specks which on micro inspection are individual fragments of calcite (and silica) cemented grain supported consolidated sandstone; as the percentage of specks increase, some of the sandstone displays a very pale yellowish gray secondary hue; overall there is more discernible consolidated sandstone; the fractional amounts of cryptosilica, undifferentiated silica, lithics and mafic minerals all appear to slightly decreased (less than 30% of total grains) and the overall composition has shifted from compositional graywacke to lithic arenite; note rare to trace red to reddish orange grains of low to medium grade jasper are now present; clastic coal is decreased, and lithic grains of calcareous tuff are finer, harder and more dark yellowish orange color. Coal /Carbonaceous Shale (9100'- 9180') = black with dark brown secondary hues; splintery to blocky cuttings; firm to slightly hard; sectile; malleable at times; planar fracture dominant with trace conchoidal and birdeye fracture; slightly gritty to smooth texture; earthy to resinous luster; trace to common visible outgassing bubbles. Sand /Sandstone (9140'- 9260') = medium light gray with light greenish gray secondary hues, individual grains dominantly clear to translucent quartz and volcanic glass, light gray to light greenish gray dark gray to black, trace white and rust angular to subangular; very fine lower trace very coarse upper, dominantly fine upper to medium upper; moderately well sorted; dominantly disaggregated with trace very fine, light gray sandstone; friable; very calcareous cement; trace to common black carbonaceous material/ coal beds. Tuffaceous Claystone /Tuffaceous Siltstone (9200'- 9340') = medium light gray with light brownish gray secondary hues; soft to slightly firm; rounded, irregular shaped cuttings; silty to clayey, occasionally gritty texture; dull, earthy to sparkly luster; moderate to very soluble; expansive when hydrated; fair cohesiveness; poor to fair adhesiveness; non calcareous; trace dark brown to black microthin carbonaceous laminations and particles; trace to common dark brown to black coal/ carbonaceous shale/ material. Coal /Carbonaceous Shale (9260'- 9400') = black with dark brown secondary hues; splintery to blocky cuttings; firm to slightly hard; sectile; malleable at times; planar fracture dominant with trace conchoidal and birdeye fracture; slightly gritty to smooth texture; earthy to resinous luster; trace to common visible outgassing bubbles. Sand /Sandstone /Tuffaceous Sandstone (9340'- 9460') = light gray overall with individual grains dominantly clear to translucent quartz and volcanic glass light gray, light greenish gray, trace dark gray to black, white, rust and dark green to greenish gray grains /clasts; angular to subangular; very fine lower to trace very coarse upper, dominantly fine lower to medium lower; moderately well sorted in very fine to medium, poorly sorted in coarse range; dominantly disaggregated with light gray ashy/ clayey supporting matrix common; trace very fine sandstone light gray; firm to friable; very calcareous cement; occasionally grading between sandy siltstone/ silty sandstone; trace to common thin coal beds. Sand/ Sandstone/Tuffaceous Sandstone (9460'- 9700') = mostly light medium gray with faint light olive gray secondary hue; lightness value locally shifts to medium gray; traces with strong olive hue; very fine upper to medium upper; moderately sorted in fine upper to medium lower; very minor fraction of very fine lower composed almost entirely of glass shards winnowed from volcanic ash; generally spotty grains larger than coarse that range up to rare granule size; coarser grains increase in basal zones of thick sands; discernible fining upward in massive sections; dominant subangular and subdiscoidal, range from angular to rounded and discoidal to subspherical; dominantly loose disaggregated grains; abundant sandstone has matrix of soft soluble tuffaceous clay and /or ash that is easily hydrated and disintegrated by drilling; equally abundant sandstone supported by complex mix of clay, ash, devitrified ash, calcite and /or silica cementation, glass shards and micro rock particles; lesser (but still abundant) fraction of calcite and /or silica cemented grain supported sandstone that is often fragmented into tiny white flakes that contrast the overall gray sample color; note minor fraction of very light gray tuffaceous sandstone • that in part grades to very sandy volcanic ash; sublithic arenite to marginal compositional graywacke; L1 EPOCH (Ali) MARATHON OIL COMPANY KBU 42 -6X • estimate 65 -80% quartz and glass, trace feldspar, 5 -15% cryptosilica and undifferentiated silica; 15- 30% lithics and mafic minerals. Coal /Carbonaceous Shale (9650'- 9760') = black with dark brown secondary hues; splintery to blocky cuttings; firm to slightly hard; sectile; malleable at times; planar fracture dominant with trace conchoidal and birdeye fracture; slightly gritty to smooth texture; earthy to resinous luster; trace to common visible outgassing. Tuffaceous Claystone/Tuffaceous Siltstone (9700'- 9800') = medium light gray with light brownish gray secondary hues; soft to slightly firm; rounded, irregular shaped cuttings; silty to clayey, occasionally gritty texture; dull, earthy to sparkly luster; moderate to very soluble; expansive when hydrated; fair cohesiveness; poor to fair adhesiveness; non calcareous; trace to common thin coal beds. Coal (9795'- 9825') = black with dark brown and dark gray secondary hues; hard; brittle at times; blocky to platy; planar fracture dominant with scattered conchoidal and birdeye fracture; smooth to slightly gritty texture; resinous to slightly earthy luster; common to abundant outgassing. Sand /Sandstone/Tuffaceous Sandstone (9820'- 9870') = medium light to light gray overall with individual grains dominantly clear to translucent quartz and volcanic glass, trace light to medium gray, light greenish gray; angular to subangular; very fine lower to medium upper, dominantly fine; fair to good sorting; dominantly disaggregated to loosely supported with light gray to grayish white ashy matrix; fragile to pulverulent; non calcareous; abundant discernible shards; trace very fine sandstone; light gray; very firm to hard irregular broken cuttings; moderate to very calcareous cement; scattered thin coal beds. Tuffaceous Claystone/Tuffaceous Siltstone (9900'- 10020) = medium light gray to light gray with light brownish gray and light yellowish gray secondary hues; very soft and sticky; irregular to shapeless, • globular cuttings; silty to clayey texture; dull, earthy to greasy luster; moderate to very soluble; expansive when hydrated; poor cohesiveness; fair to good adhesiveness; non calcareous. Sand/ Sandstone /Tuffaceous Sandstone (9940'- 10080') = medium light to light gray overall with individual grains dominantly clear to translucent quartz and volcanic glass, trace light to medium gray, light greenish gray, dark gray to black; angular to subangular; very fine lower to medium upper, dominantly fine; fair to good sorting; dominantly disaggregated to loosely supported with light gray to grayish white ashy matrix; fragile to pulverulent; non calcareous; abundant visible shards; trace very fine sandstone; light gray; very firm to hard irregular, broken cuttings; moderate to very calcareous cement; common to abundant dark brown to black carbonaceous shale/ material/ coal beds. Tuffaceous Claystone/Tuffaceous Siltstone (10040'- 10160') = light gray to light brownish gray; soft; irregular, rounded cuttings; silty to clayey to slightly gritty; dull, earthy to slightly sparkly luster; moderate to very soluble poor cohesiveness; poor to fair adhesiveness; non calcareous; trace dark brown to black carbonaceous laminations and particles. Sand /Sandstone /Tuffaceous Sandstone (10100'- 10220') = medium light to light gray overall with individual grains dominantly clear to translucent quartz and volcanic glass, trace light to medium gray, dark gray to black, trace rust and white; angular to subangular; very fine lower to medium upper, dominantly fine; fair to good sorting; dominantly disaggregated with scattered fine to medium grain sandstone; multicolored with white ashy supporting matrix; very fragile; non calcareous; trace light to medium gray very fine hard calcite cemented sandstone. Sand /Sandstone (10220'- 10278') = medium light gray with very faint light olive gray and yellowish gray secondary hues; very fine upper to rare conglomerate, dominantly moderately sorted in fine upper to coarse upper range; angular to subangular; subdiscoidal to subspherical; mostly complex mixed grain and matrix supported with clay -ash, calcite - silica cement, rock microparticles and microshards; sublithic arenite to compositional graywacke; note distinctly grayish orange lithic grains in sandstone; strong trace tuffaceous sandstone. • Li EPOCH 8 M SAMPLING PROGRAM AND M DISTRIBUTION ARATHON OIL COMPANY KBU 42 -6X KBU 42 -6X Set Type and Purpose Interval Frequency Distribution Marathon Oil Company c/o C & M Storage, Inc. 3311 S U.S. Highway 77 A Washed and Dried 7105' — 10278' 20' Schulenburg, TX 78956 Attn: Scott Szalkowski (713) 296 3390 BOX INTERVALS: (2 Boxes Total) 7105'- 8880', 8880'- 10278' TD • El EPOCH 9 M MARATHON OIL COMPANY KBU 42 -6X • 4. DRILLING DATA 4.1. DAILY ACTIVITY SUMMARY 4/15/2009: Call out full crews and start preparations for spudding well. Rig up shock hoses. Put cellar grating in place. Install pump #3 suction and pop -off lines. Spot initial diverter section. Lubricate /grrease carrier, Topdrive and crown. Pull lines for gas alarms. Troubleshoot and retighten loose alternator on carrier. Change oil and filter on #2 transmission. Install flowline extension. Pull out bridge crane beams. Cut and dress 20" conductor. Weld 2" nipple on conductor. Install 20" SLC x 21 1/4" starter head and test to 300psi for 10 minutes. Rig up /connect kill line to conductor. Nipple up diverter system (diverter stack, 21 1/4" 2M diverter, 16" diverter valve, 16" diverter line). Install 4" valves on starter head. Nipple up knife valve. Remove butt plug. Spot BJ cementing unit and cement silos. Pump through #1 and #2 mud pump pop -offs and pin to 3500psi. Rig up bleeder line, fill -up line, trip tank hose and actuator. Chain stack and adjust position and tension. Rig up trip tank pump. Rig up hydraulic lines. Test mud all three mud pumps. Check interlocks and ESDs. Begin mixing spud mud. Set up pipe racks. Begin loading and prepping drill pipe. Install mouse hole. Test diverter, diverter valves, flow line, gas alarms, PVT and accumulator. Rig up pipe handling equipment. Measure, pick up and make up 16" bit, bit sub and crossover. 4/16/2009: Finish mixing and pre- conditioning spud mud. Run inside 20" conductor with 16" bit on 5" drill pipe and tag fill at 21'. Break circulation and clean out conductor from 21' to 132' (base of conductor). Pull out of hole. Lay down crossover, bit sub and bit. Tally all tubulars on pipe racks. Pick up, drift, make up, stand back in derrick and strap 5" drill pipe, 5" HWDP and jars. Measure out and stage directional bottom hole assembly. Hold weekly safety meeting with all hands. Pick up, make up and run in hole lower section of bottom hole assembly. Break circulation. Drill out of conductor at 132' and Spud Well (at 15:19 hours). Drill from 132' to 171'. Circulate hole clean. Pull partially out of hole from 171' to 110'. Run back in hole, picking up shock sub, flex collars, crossovers and first stand of 5" HWDP. (Note drilling • to 800' will be on stands of 5" HWDP and jars). Break circulation. Drill (rotating and sliding) from 171' to 455'. 4/17/2009: (Note drilling after 800' is on 5" drill pipe). Drill (sliding and rotating) from 455' to 1984'. 4/18/2009: Drill (sliding and rotating) from 1984' to 2520'. Circulate bottoms up. Pump around 30 bbl HiVis sweep and continue to circulate until hole is clean. Pull out of hole from 2520' to 140' on wiper trip. Lay down shock sub and 2 crossovers. Run back in hole from 140' to 2445'. Wash down from 2445' to 2520' (with no fill). Circulate bottoms up. Pump around 30 bbl HiVis and nutplug sweep and continue to circulate until hole is clean. Pump and spot 20 bbl pill on bottom. Check for flow. Pull out of hole from 2520' to top of bottom hole assembly at 800'. Pull and stand back 11 stands of 5" HWDP (21 joints plus jars) and 1 stand of NMCSDP flex collars to 111'. Check filter in filter sub and dress 6 5/8" Reg threads. Break and lay down NM crossover, filter sub and UPA sub. Pull, break, lay down and load off directional tools (MWD, NM crossover, NM pony collar, NM string stabilizer, X -Treme motor, bit). Grade bit. Blow down mud line, kill line and choke line. Clear and clean rig floor. Prepare to run 13 3/8" casing. Change out from short to long bails. Lay down pipe elevators. Install pick -up line. Move breakout tongs to driller's side and install correct tong head. Install fill -up line. Install casing elevators. Rig down pipe spinner. Change out from short to tall snub post. Rig up casing tongs. • El EPOCH 10 MARATHON OIL COMPANY KBU 42 -6X • 4/19/2009: Rig up and test stabbing board. Remove rotary bushings and rig up casing spider slips. Tie one tugger line back in derrick for pipe pick -up and second tugger line back to hang casing tongs. Rig up Weatherford power tongs. Make up and function check EZ -turn valve onto casing swage for safety valve (and record in IADC). Stage centralizers and lock rings on rig floor. Clean casing threads of each shoe track joint before make up. Hold pre -job meeting with Weatherford hands on procedures and safety for running surface casing. Run 13 3/8" casing as per Marathon. Pick up, Bakerlok, make up and run in hole 13 3/8" shoe track (shoe joint, spacer joint, sting -in float collar). Check floats. Continue running in 13 3/8" casing as per Marathon and encounter differential sticking at 2501'. Attempt to wash down to bottom but unable to make progress. (Shoe estimated at 2501', float collar at 2456'). Land casing out on base plate. Rig down and load off all Weatherford casing running equipment. Rig down stabbing board. Rig down fill up line. Pre -treat mud with Sodium Bicarbonate while rigging Weatherford down. Clear rig floor. Change out bails, elevators, tongs and snubbing post to handle and run 5" drill pipe. Rig up and prep pipe spinner. Make up inner string tools (stab -in sub, 5' pup and 5" drill pipe centralizer on first tool joint) to 5" HWDP. Rig up false rotary for running 5" drill pipe inside 13 3/8" casing. Run in hole with 5" drill pipe to top of float collar at 2456'. Tag and sting into float collar and space out. Circulate and condition hole. Pre -treat mud with Sodium Bicarbonate and Desco while stung in. Pump 200 bbls of mud to Hanson Tank prior to cementing. Build 40 bbls Mud Clean II preflush spacer. Rig up cementing lines. Hold pre - job meeting with BJ cementers and vac truck drivers on safety and procedures for cement job. Pump 40 bbls of 8.4ppg Mud Clean II (with 1 gallon red dye added) using rig pumps. Switch over to BJ pumping unit. Pump 2.1 bbls of water to fill cement lines. Pressure test to 2345psi. Bleed off pressure. Batch cement to 12.0ppg. Pump 181.0 bbls of 12.0ppg cement slurry (606 sacks Type I LW -6 cement and accelerator additives to 149.0 bbls of mix water for 10.328 gal water /sack and yield of 2.483 cu ft per sack). Finish pumping cement and then follow with 2.0 bbls of water and 38.0 bbls of 9.5ppg mud to displace. No losses during pumping with 40 bbls of cement and 242 bbls of total returns and back to the surface. Note 20 bbls of spacer and 15 bbls of cement dumped in cellar. Bleed off cement line pressure. Check floats. Cement in place. Cement returns treated with citric acid retarder. Begin wait on cement. • Rig down and flush cementing head and lines and continue rigging down BJ. Unsting from float collar. Float holding. Pull out of hole 2 stands from 2456' to 2330' and rig up to pump ball down pipe. Install wiper dart into drill pipe box and sponge ball into Topdrive pin. Install 13 3/8" circulation nipple. Pump wiper ball and dart down to clear drill pipe of any residual cement. Circulate 1 annular volume. Treat all mud returns for presence of cement products. Dump returns during and after pumping ball. Finish pumping. Flush trip tank, stack, cement line, bleeders and all mud lines with retarded water. Rig up false rotary and pull out of hole with 5" drill pipe from 2330' to surface. • 11 [l EPOCH M MARATHON OIL COMPANY KBU 42 -6X • 4/20/2009: Break and lay down stab -in assembly (5' pup, stab -in tool, centralizer). Lay down 4 singles with visible residual cement. Rig down false rotary. Flush overheads in pits. Flush, re -flush and drain 20" by 13 3/8" annulus, flowline and all mud lines. Flush #3 mud pump. Blow down all mud lines. Pull plate. Clear, clean and organize rig floor and cellar. Remove and lay down mousehole. Prep diverter for nipple down. Rinse Hanson tank. Begin pumping out and hauling off spud mud and cleaning pits. Nipple down and remove diverter line, knife valve and hydraulic control lines. Nipple down and rig down fill -up line, bleeder line and trip tank line. Disconnect turnbuckles to stack and secure to the side. Rig down trip tank actuator valve. Hotbolt diverter stack and prepare to raise (remove all but 2 bolts on stack). Rig up drill pipe elevators. Lift stack. Make rough cut on 13 3/8" casing and lay down (21.70') stub section. Nipple down and rig down flow line, flow line extension, kill line, 2" valve, accumulator lines, bell nipple and scaffolding. Finish cleaning the pits. Begin building 700 bbls (500bbls in pits, 200bbIs in Vac trucks) of new 8.8ppg Flo -Pro mud as per Marathon program. Finish nippling down the last components of the diverter stack and then move out of the cellar and mount on stand. Remove and load off 21 1/4" sliplock starter head. Make cut on 20" conductor. Make final cut (of 8.60' section) on 13 3/8" casing and then dress out stub. Install 13 3/8" sliplock connection by 13 5/8" 5M flanged multibowl wellhead. Energize seals and test wellhead to 1800psi for 10 minutes. Nipple down single gate. Clean up around sub -base catwalk and gray iron. Set pipe racks in place next to catwalk. Set spool and HCR on stack and spot near sub -base. Nipple up 13 5/8" 5M x36" spacer spool. Install flowline extension. Nipple up 13 5/8" 5M BOP stack. Nipple up kill and choke lines. Pick up and re- install mousehole. Nipple up and rig up all remaining BOP attachements and accessory equipment (fill -up line, bleeder line, trip tank line, flow line, 2" valve, accumulator lines, actuator, bell nipple, drip pan and scaffolding). Re- connect and secure turnbuckles to stack. Install and then shim the outboard disc brake pad on the bottom caliper. Begin loading and strapping 5" drill pipe on pipe racks. Prepare to test BOPE. Pull wear ring. Set test plug. Rig up testing equipment. Function check BOPE. Test annular to 250psi Low / 2500psi High for 5 minutes. Begin testing all other BOPE to 250psi Low / 3500psi High for 10 minutes (2 7/8" x 5'/2' variable pipe rams, upper topdrive, check valve, annular, dart valve, floor valve, lower topdrive, outside kill, inside • kill, HCR, manual choke, blind rams, CMVs 1 -12). 4/21/2009: Finish testing BOPE to 250psi Low / 3500psi High for 10 minutes (2 7/8" x 5 1/2" variable pipe rams, upper topdrive, check valve, annular, dart valve, floor valve, lower topdrive, outside kill, inside kill, HCR, manual choke, blind rams, CMVs 1 -12). Perform accumulator drawdown test. Test all gas alarms. Rig down BOPE test equipment. Pull test plug. Install wear ring. Rig up to test 13 3/8" casing and then test to 1500psi for 30 minutes. Rig down test equipment. Blow down Topdrive, choke and mud lines. Install drip pan. Adjust stack chains and mousehole. Service rig, Topdrive and equipment. Grease crown. Finish building 700 bbls (500bbls in pits, 200bbIs in Vac trucks) of new 8.8ppg Flo -Pro mud as per Marathon program. Install elevators. Pick up and install pipe handling tools on rig floor. Prepare to pick up pre - tallyied joints of 5" drill pipe arrayed on the pipe racks. Pick up, drift, make up and run in hole (80 joints, 40 stands) of 5" drill pipe, and then pull out racking back and strapping in derrick. Clean rig floor. Lay out lower directional assembly on catwalk. Pick up, make up and run in hole new directional assembly (bit, motor, NM stabilizer, pony NMDC, NM crossover, MWD, UPA sub, NM filter sub, NM crossover, 2 NMCSDPs, crossover) to 141'. Orient and scribe MWD tools and dress threads on crossovers while running in. Continue running in hole with 11 stands of 5" HWDP and jars to 800'. Break circulation and surface test MWD. Continue running in hole with pre - tallyied singles of 5" drill pipe off the pipe racks from 800' to 2126'. Install corrosion ring in next stand of 5" drill pipe to be added to string. Wash down from 2124' and tag float collar at 2466'. Note no cement above float collar. Drill out and clean out float equipment and remaining shoe tract (cement, shoe at 2508', 12' of rathole) to 2520'. Drill 20' of new hole from 2520' to 2540'. Circulate bottoms up and continue circulating hole clean. Displace hole with 30 bbls water, 35 bbls Hi -Vis sweep and 362 bbls of new 8.8ppg Flo -Pro mud. Cease pumping. Perform Formation Integrity Test to 13.0ppg EMW. Drill ahead from 2540' to 2608'. 4/22/2009: Drill (rotating and sliding) from 2608' to 4335'. • EPOCH 12 EI E M MARATHON OIL COMPANY KBU 42 -6X • 4/23/2009: Drill from 4335' to 4399'. Circulate bottoms up and continue to circulate hole clean. Pull out of hole on wiper trip to 2440' (inside 13 3/8" shoe). Work through and clean up tight spots on way out of hole at 3600' and 3495'. Service rig, carrier blocks and crown. Run back in hole to 4335'. Work through tight spots at 3000' and 4018' on way in. Wash down from 4335' to 4399'. Drill (rotating and sliding) from 4399' to 5097'. Begin losing mud at increased rate at 5068'. Slow pump rate down and continue drilling from 5097' to 5160'. Significant losses continue. Pump and spot LCM pill on bottom. Pull out of hole from 5160' to 4335'. Run back in hole from 4335' to 4750'. Pipe stuck. Work pipe free. Continue running in hole pumping down from 4750' to 5160'. Well still taking fluid while pumping in and while circulating near bottom. Spot a second LCM pill near bottom. Pull out of hole to 4462' on second wiper trip. Run back in hole from 4462' and encounter tight spot at 4875'. Kelly up, break circulation and establish returns. Wash through tight spot and continue washing to 4906'. Cease circulating. Continue running back in hole from 4906' and encounter tight spot at 5055'. Kelly up, break circulation and establish returns. Begin washing down to tight spot with full returns. (Note estimated 565 bbls of total losses since 5068'). 4/24/2009: Wash down through tight spot at 5055' continue washing down to 5160' with full returns. Drill ahead without losses from 5160'. Drill (rotating) from 5160' to 5287'. Drill (sliding) from 5287' and observe significant rate of mud loss after 5313'. Continue slide drilling to 5320' and drilling ahead rotating to 5341' with mud losses of 112 bbls in 66 minutes. Pump and spot LCM pill. Pull out of hole to 2440' (inside 13 3/8" shoe) to rebuild mud volume. Work through several tight spots on way out, with net mud loss of 12 bbls. Slip and cut drilling line. Run back in hole 2 stands to 2563'. Break circulation, circulate out and continue to circulate and condition mud. Cease circulating. Continue running in hole from 2563' to 5287', working through several tight spots on way in, and needing to kelly up and circulate stands down at 3701' and 4528'. Wash down from 5287' to 5341'. Record 27 units of wiper gas. Drill (sliding and rotating) from 5341' to 5413'. Start observing significant mud losses at 5380'. Lose 238 bbls in 3 hours. Pump and spot 40 bbl LCM pill. Pull out of hole from 5413' to 4779'. Work pipe (without circulating) to give pill time to soak. Run back in hole from 4779' to 5350'. Wash down from 5350' to 5413'. Drill (sliding and rotating) from 5413' to 5427'. 4/25/2009: Drill (sliding and rotating) from 5427' to 6258'. 4/26/2009: Circulate bottoms up. Work on Topdrive rail while circulating. Pump and backream out of hole on wiper trip from 6258' to 5300'. Run back in hole from 5300' to 6173'. Wash down from 6173' to 6236'. Start pumping around 30 bbl weighted Hi -Vis sweep to clean hole. Ream stand 2 times at 6236' while cleaning hole and circulating around sweep. Continue washing down from 6236' to 6258'. Drill (sliding and rotating) from 6258' to 6870'. 4/27/2009: Drill (sliding and rotating) from 6870' to 6983'. Circulate bottoms up and continue circulating until the Marathon geologist finishes correlating stratigraphic depths. Drill (rotating) from 6983' to 7105' (intermediate casing point). Circulate bottoms up and continue to circulate hole clean. Pull out of hole on wiper trip from 7105' to 2437' (inside of 13 3/8" shoe). Level derrick. Service carrier, crown, blocks and Topdrive. Run back in hole from 2437' to 7057'. Break circulation and wash down from 7057' to bottom at 7105' (with no fill). Begin pumping around 30 bbl weighted Hi -Vis sweep. Circulate bottoms up and record 43 units of wiper gas. Circulate sweep around and continue to circulate, clean and condition hole (2 1/2 bottoms up total). Pull out of hole ((SLM) from 7105' (to 6425'). • El EPOCH 13 MMT18011 MARATHON OIL COMPANY KBU 42 -6X • 4/28/2009: Continue pulling out of hole (SLM) from 6425' to 2810' (just inside 13 3/8" shoe). Briefly circulate at shoe (400gpm, 67spm, 700psi). Record 1 unit of gas. Continue pulling out of hole (SLM, with no correction) from 2810' top of 5" HWDP at 800'. Hole slick all the way. Pull out of hole standing back 5" HWDP and jars to 143'. Pull, break and lay down directional assembly (crossover, 2 NMCSDPs, MN crossover, NM filter sub, UPA sub, MWD, NM crossover, pony NMDC, NM stabilizer, motor, bit). Inspect and grade bit. Blow down mud lines. Clear and clean rig floor. Prep for running 9 5/8" casing. Pull wear bushing. Close blind rams. Change out top set variable pipe rams to 9 5/8" casing rams. Rig up and function stabbing board. Move torque tube back for clearance. Run in test plug, rig up test equipment and test 9 5/8" rams to 250psi Low / 3500psi High for 10 minutes. Rig down test equipment and pull test plug. Using single joint elevators, with Vetco -Gray witnessing, make dummy run and drift BOPs with 9 5/8" landing joint and hanger. Mark elevation on landing joint. Pull and lay down landing joint. Move breakout tongs to driller's side and install correct tong head. Remove drill pipe elevators and short bails. Install long bails and attach pick up line. Pick up 350 -ton casing elevators. Rig up Weatherford casing (power) tongs and tall snub post. Remove rotary bushings. Rig up casing spider slips. Test stabbing board clearance. Install Lafleur fill -up tool. Make up EZ -turn valve onto casing swage (to act as a safety valve), function test, record in IADC and leave in open position. Stage centralizers and lock rings on rig floor. Tie one tugger line back in derrick for picking up pipe, and use second tugger line to hang casing tongs. Hold pre -job meeting with Weatherford and all hands on procedures and safety for running intermediate casing string. Run in hole with 9 5/8" shoe track as per Marathon program. Pick up, clean threads, Bakerlok, make up and run in hole float shoe, 2 spacer joints, float collar and1 additional joint to 124'. Circulate casing volume through shoe track and check float equipment. Continue running 9 5/8" casing in hole as per Marathon. Attach centralizers and stop collars to joints as per tally. Fill every joint on way in. Run casing from 124' to 2440' (just inside 13 3/8" shoe). Break circulation, fill pipe and briefly circulate. Record 1 unit maximum gas. Continue running 9 5/8" casing in hole from 2440' to 3786'. Hold second meeting with Weatherford and all new hands at crew change on procedures and safety for running intermediate casing string. Continue running 9 5/8" casing in hole from 3786' to 3911'. 4/29/2009: Continue running 9 5/8" casing in hole from 3911' to 4896'. Reset riser. Continue running 9 5/8" casing in hole from 4896' to 7059'. (Lose 40 bbls of mud running in last 22 stands of casing from 6198' to 7059'). Break circulation and prepare to pick up landing joint.. No returns while circulating. Monitor lost circulation. Lose 112 bbls of mud in 29 minutes and 2291 strokes. Stop pumps and monitor for losses. Well static. Pick up landing joint and wash down from 7059' to landing depth. Lose 12 bbls of mud in 10 minutes while washing down (260 total strokes at 26spm). Land hanger on load shoulder in multi -bowl wellhead at 7091.00'. Drain stack and verify landing. Stop pumping. Make up circulating swage and attempt to circulate. No returns during attempt. Hold meeting on lost circulation problems. Pull and lay down casing spider slips and Weatherford casing power tongs. Load off excess centralizers, lock rings and remaining casing running tools. Re- adjust tugger lines. Rig down and lay down casing elevators, long bails, pick up sling line and Lafleur fill -up tool. Build mud volume (to 570 total bbls). Make up cement lines and cementing head with top and bottom plugs pre - installed. Hold pre -job meeting with BJ and all hands on procedures and safety for cement job. Blow down cement lines and valves to clear. Switch to BJ pumping unit. Pump 2.3 bbls of water to fill lines and pressure test to 3278psi. Bleed off pressure and line out to pump spacer. Mix and pump 42.0 bbls of mud mixed with 80 Ibs of Sealbond Plus, water and LCM. Finish pumping spacer and shut down. Switch over to rig pumps and pump 40 bbl LCM pill. Pump, spot and displace both pills outside 9 5/8" casing. Continue pumping with mud. Pump 13000 total strokes with no returns. Fill pits with water to displace cement. Pump 30.6 bbls of 1 Oppg Sealbond Plus sweep. Open up bottom valve and drop first (bottom) plug. Mix and pump 220.0 bbls of 10.5ppg cement slurry (366 sacks of Class G cement plus accelerator chemicals mixed with 110.45 bbls water at 12.675 gal /sk and yield of 3.321 cu- ft/sk). Stop pumping. Open top valve and close middle and bottom valve on circulating head. Drop second (top) plug. Pump 5.8 bbls of water to kick out the top plug. Switch over to rig pumps. Displace cement with 528.72bbls (11221 strokes) of mud and water (and 534.5 bbls total displacement). Bump plug with 1003psi over circulating pressure (and 1522psi total pressure). Bleed off. Check floats. Cement in place. Continuous losses of mud during displacement. Begin wait on cement. Note 1604 bbls of total fluids lost since initial loss running in casing. Flush down, blow down and rig down BJ cementing head and cement lines. Blow down Topdrive, mud lines and mud pumps. Back out and lay down casing hanger landing joint. Fold up stabbing board. Clear and clean rig floor. Make up 13 3/8" by 9 5/8" pack -off and run in on 1 joint of HWDP. • Ii EPOCH 14 Ark) MARATHON OIL COMPANY KBU 42 -6X 4/30/2009: Readjust and set Topdrive rail (torque tube) forward. Energize seals and test packoff to 5000psi for 10 minutes. Pull and lay down packoff and joint of HWDP. Install wear bushing. Install short bails, drill pipe elevators and handling equipment. Move hanging sheave for breakout tongs to driller's side and install correct tong head. Close blind rams. Change out upper 9 5/8" casing rams to 2 7/8" by 5 1/2" variable pipe rams. Clean rig floor. Run in hole with 5" HWDP (plus jars) and 90 stands of 5" drill pipe out of derrick to 6347'. Rig up to lay down drill pipe. Hold pre -job meeting on procedures and safety for laying down drill pipe. Pull out of hole laying down 5" drill pipe to top of HWDP at 656 ". Run in hole with last 10 stands of 5" drill pipe out of derrick to 1289 ". Pull out of hole laying down 5" drill pipe to top of HWDP at 656 ". Pull and stand back 5" HWDP and jars in derrick. Begin mixing new volume of Flo -Pro mud. Finish changing out the liners and swabs of all mud pumps from 5" to 4 ". Change out all pipe handling tools from 5" to 4 ". Change out dies and guide on Topdrive grabber box. Change out saver sub to 4" HT -38. Strap, pick up, drift, make up and run in hole joints of pre- staged and prepped 4" HT -38 drill pipe off the pipe racks. 5/01/2009: Continue to strap, pick up, drift, make up and run in hole joints of pre- staged and prepped 4" HT -38 drill pipe off the pipe racks. Run in 200 total joints. Add steel lube to mud system and circulate 16338 strokes. Pull out of hole standing back 100 stands of 4" drill pipe in derrick. Start rig up to pick up more 4" drill pipe, but discontinue to switch to preparations for wireline logging. Begin mixing new Flo -Pro mud. Hold pre -job meeting Expro Wireline Service on wireline operations. Rig up Expro surface wireline running equipment. Pick up and make up Expro's Cement Bond Log assembly and run in hole. Log up from 6950' to surface casing and pull out of hole with wireline assembly. Determine top of cement at 5100'. Add collar locator tool to assembly and run back in hole. Tag at 6990' and log up to verify cement top position. Pull out of hole with wireline assembly. Lay down tools and rig down surface running equipment. Continue mixing mud. Get permits to function BOP valves in cellar. Pull wear bushing and prepare to test variable rams. Set aside wear bushing and suspend testing while results of CBL are being assessed by Marathon supervisors. Decision made to proceed with standard operations and not squeeze zone above cement. Rig up and test 9 5/8" casing to 2000psi for 30 minutes. Prep to test BOPs. Run in test plug. Rig up testing equipment. Test all BOPE to 250 Low / 3500 High for 5 minutes (annular 410 preventer, upper pipe rams, check valve, dart valve, upper Topdrive IBOP, CMVs 1- 10- 11 -12, floor valve, lower Topdrive IBOP, outside kill valve, CMVs 6 -8 -9, inside kill valve, CMVs 2 -5 -7, HCR, manual choke, CMVs 3 -4, blind rams). 5/02/2009: Perform accumulator drawdown test. Test gas alarms. Rig down testing equipment. Pull test plug. Install wear bushing. Clear and clean rig floor. Prepare to handle bottom hole tools. Pick up, make up and run in hole lower section of new directional assembly (bit, motor, NM string stabilizer, pony NMDC, MWD). Orient and scribe MWD tools. Dress monel threads. Make up and run in hole remaining directional tools (2 NMCSDP flex joints, steel crossover). Make up crossover to first stand of HWDP from derrick and run in hole with HWDP and jars to 791'. Test MWD pulse signal. Make up 4" crossover. Change inserts. Install corrosion ring to first joint of 4" drill pipe. Strap, pick up, rabbit, drift, make up and run in hole 144 single joints (72 stands) of pre- staged and prepped 4" drill pipe off the pipe racks to 5323'. Briefly fill pipe. Continue running in hole with stands of 4" drill pipe out of the derrick from 5323' to 6897'. Wash down from 6897' and tag float collar at 7003'. Only trace cement above float collar (from 6922'). Drill out and clean out float equipment and drill cement to 7080'. Displace hole with new 9.2ppg Flo -Pro mud. Drill remaining shoe tract (9' cement, shoe to 7091', 14' of rathole) to 7105'. Drill 20' of new hole from 7105' to 7125'. Circulate bottoms up and continue circulating hole clean. Cease pumping. Perform Formation Integrity Test to 13.0ppg EMW. Drill ahead from 7125' to 7684'. 5/03/2009: Drill from 7684' to 8346'. Circulate bottoms up. Begin pulling out of hole on wiper trip. Pull from 8346' to 8282'. Pipe tight. Kelly up and break circulation to work through tight spot. Backream out of hole from 8282' to 7149'. Work through several tight spots on way out. Pull up into shoe from 7149' to 7086'. Service carrier, topdrive, blocks and crown. Repair #1 mud pump cooling tower. Work on EPOCH rpm sensor mounted on Topdrive. Change oil in #1 rig generator. Run back in hole slick from 7086' to 8282'. Wash down from 8282' to bottom at 8346' with no fill. Drill from 8346' to 8680'. El EPOCH 15 M MARATHON OIL COMPANY KBU 42 -6X 5/04/2009: Drill from 8680' to 9479'. Circulate bottoms up. Check for flow. Begin pulling out of hole on wiper trip. Pull from 9479' to tight spot at 9329'. Kelly up and break circulation to work through tight spot. Backream out of hole from 9329' to 9101'. Work through several tight spots on way out (at 9329', 9324', 9296', 9200', 9194', 9172', 9117', 9114', 9081'). Elevators get jammed and stuck on drill pipe when attempting to pull next stand after 9101'. Unable to free up elevators. Cut joint of drill pipe, and proceed to lay down drill pipe sections and elevators. Install new inserts on the elevators, and re- install elevators on bails. Continue circulating while work is proceeding on unjamming and freeing drill pipe.. Record maxiumum 503 units of ream gas. Pick up new joint of drill pipe to add to string. Kelly up, break circulation and continue backreaming out of hole from 9101' to 7842'. Pipe coming out easier. Cease pumping and pull out of hole from 7842' to 7082' (inside of shoe). 5/05/2009: Cut and slip drilling line. (Inspect and cut 533' of damaged line and slip 640'). Service rig. Lube Topdrive and carrier. Run back in hole from7082' to 9416'. Wash down from 9416' to bottom at 9479'. Clean out 15' of fill on way to bottom. Drill next stand down from 9479' to 9542' and observe fast rising high gas just before connection. Halt making the next connection and cease drilling to circulate up the initial bottoms up. Record 2015 units of wiper gas. Begin increasing mud weight from 10.3ppg to 10.6ppg. Circulate high gas back down to 150 units before making connection at 9542'. Continue drilling ahead one stand from 9542' to 9605' and record 292 units of connection gas (from 9542'). Cease drilling ahead and continue increasing the mud from 10.6ppg to 10.8ppg while working the pipe. Circulate bottoms up and record 259 units of connection gas (from 9605'). Get 10.8ppg all the way around and continue drilling ahead. Drill ahead from 9605' and continue raising mud weight throughout the day. Increase weight to 11.1 ppg by 9960' and 11.4ppg by 10160'. Drill from 9605' to 10278' (T.D. of well). Circulate bottoms up and continue to circulate, clean and condition hole while waiting for Marathon geologist to confirm final depth. Perform simulated connection while conditioning mud and record 21 units of connection gas. Finish conditioning mud and prepare to pull out hole. 411 5/06/2009: Check flow. Begin pulling out of hole on wiper trip to 9 5/8' shoe. Pull out of hole free from 10278' to 10086'. Hole began pulling very tight and sticky at 10086'. Pull out tight from 10086' to 9835'. Break circulation and continue pulling out of hole backreaming from 9835' to 8723'. (Note 38 units gas while backreaming). Continue to pull out of hole slick from 8723' to 7086' (inside of shoe). Lube and service crown, blocks, Topdrive and carrier. Run back in hole from 7086' to 9860'. Encounter partial bridge. Break circulation. Wash down from 9860' to bottom at 10278' (with no fill). Circulate bottoms up. Record 1298 units of wiper gas at bottoms up. Continue to circulate, clean and condition hole. Gas reduced to 40 units. Check for flow. Pull out of hole from 10278' to 8660' on wiper trip. Run back in hole from 8660' to 10236'. Wash down from 10236' to 10278' (with no fill). Circulate bottoms up. Record 468 units of wiper gas at bottoms up. Continue to circulate, clean and condition hole. Gas reduced to 25 units. Mix and pump dry job. Fill trip tank. Pull out hole (SLM) from 10278' to 7086' (inside 9 5/8" shoe). Monitor well for 5 minutes. Continue pulling out of hole from 7086' to top of bottom hole assembly at 793'. Pull and stand back 11 stands of 5" HWDP (21 joints plus jars and crossover) to 134'. Pull, break, lay down and load off directional tools (crossover sub, 2 NMCSDP flex joints, MWD, NM pony collar, NM string stabilizer, M1XP motor, bit). Grade bit. Blow down mud line, kill line and choke line. Clear and clean rig floor. Lay down handling tools. Hold pre -job meeting with Weatherford Wireline Services' loggers on procedures and safety for handling wireline logging tools. El EPOCH 16 (A MARATHON OIL COMPANY KBU 42 -6X • 5/07/2009: Finish pre -job meeting with Weatherford Wireline Services' loggers on procedures and safety for handling wireline logging tools. Monitor well through all wireline operations with the trip tank. Stage logging tools on catwalk. Hang sheaves, rig up wireline running equipment and install lubricator. Pick up, make up and run in hole Weatherford's Quad -Combo logging assembly. Load sources for neutron tools. Run in hole to 10278'. Log up from with WWS Quad -Combo assembly from 10276' to 9800'. Run back down and log up second time over latter interval to record a dedicated repeat section and double -check caliper function and orientation. Continue logging up up with WWS Quad -Combo assembly from 9800' to 7091' in open hole and from 7091' to 2500' in cased hole. Note various rig servicing, maintenance and other activities performed while wireline logging operations are taking place. Pull wireline assembly out of hole from 2500'. Unload sources. Break and lay down Quad -Combo logging tools. Hold second pre -job meeting with Weatherford Wireline Services' loggers on procedures and safety for handling MFT logging tools. Stage logging tools on catwalk. Pick up, make up and run in hole MFT logging assembly and park at 6800' (outside casing shoe) until first pressure point determinations are submitted by Marathon Geology. Receive initial pressure point list from geolgist. Run MFT assembly down through the casing shoe at 7091' and continue downhole without incident to first pressure point at 9263'. Do gamma correlation and position formation tester. Log up, taking pressure points from 9263' to 8441'. 5/08/2009: (Note various rig servicing, maintenance and other activities performed while wireline logging operations were taking place. Repair hydraulic leaks on tugger control, tugger diverter valve, and trip tank control valve. Change out and replumb 1" valve for safety shower at caustic mix tank in pits. Scrub and clean pump room, pits, pits roof, rig floor, mud boat and the exterior areas around the sub -base, carrier, pump room, and pump #3 module). Continue logging up on wireline with Weatherford Wireline Services' MFT tool, taking pressure points from 8441' to 7563'. Note repeated instances of logging tool unable to obtain or hold a seal. Pull up logging assembly up into the casing to 7050'. Function and performance check the MFT's pad seal against the casing. Logging tool unable to hold a seal in casing. Pull out of the hole with MFT logging tool to inspect for damage or obstruction. Observe slight bulge around quartzdyne ring on extend arm pad. Change pad, clean screen and flush system. Run back in • hole with re- conditioned MFT logging tool to 7050' just inside the 9 5/8" casing shoe. Function and performance check the MFT's pad seal against the casing. Logging tool set a tight seal inside the casing. Continue running in hole with logging assembly to7701'. Attempt 7 pressure tests at diverse points from 7709' to 7672' to 7705', which were already checked on the previous run, and obtain very erratic results. (Record no seals, leaking seals or tight readings at points where "good" tests with a fast response and "normal" profile were obtained earlier). Pull out of the hole with MFT logging tool to troubleshoot problem. Unable to detect any obvious problems. Newly replaced extend arm pad appears undamaged and quartzdyne sensor is unobstructed. Remove and clean pad, clean screen and flush system a second time. Run back in hole with re- conditioned MFT logging tool to 7701'. Attempt 9 pressure tests at diverse points from 7701' to 7563' to 7709' to 7840' to 7709', which were already checked on the two previous runs, and obtain erratic and /or "non- repeatable" results. (Record no seals, leaking seals, tight readings, different pressure thresholds, very slow response times and other inconclusive results at points where good tests with a fast response and "normal" profile were obtained earlier). Confer with Marathon geology regarding the test results. Decision made to bypass the last section of pressure points and proceed with production phase of well. Pull out of hole from 7709'. Break and lay down MFT logging assembly. Rig down WWS surface running equipment and sheaves. Clear and clean rig floor. Pick up and make up bit and bit sub to first stand of 5" HWDP and run in hole on dedicated clean out run. Run in hole to 661', crossover to 4" drill pipe and continue running in hole to 3682'. Fill pipe. Continue running in hole to 6956'. Fill pipe. Continue running in hole to 10232'. Break circulation and wash down from 10232' to bottom at 10278' (with no fill). Begin circulating bottoms up. Record rapidly increasing initial trip gas returns (682 units) at report time. El EPOCH 17 m MARATHON OIL COMPANY KBU 42 -6X • 5/09/2009: Finish circulating bottoms up and record 2774 units of trip gas. Circulate, clean and condition hole while raising mud weight from 11.3ppg to 11.5ppg. Check for flow. Pump dry job. Pull out of hole on wiper trip from 10278' to 7081' (inside shoe). Run back in hole from 7081' to 10230'. Break circulation. Wash down from 10230' to 10278'. Clean out 8' of fill washing to bottom. Circulate bottoms up. Record 77 units of wiper gas. Circulate hole clean. Pull out of hole from 10278' to 7081' (inside shoe). Fill hole and fill trip tank. Rig up for laying down pipe. Hold pre -job meeting on procedures and safety for laying down laying down drill pipe. Pull out of hole laying down 4" drill pipe from 7081' to 2422'. Monitor well with trip tank. Run back in hole from 2422' to 5801' with drill pipe in derrick. Pull out of hole laying down 4" drill pipe from 5801' to 2777'. Pipe begins pulling wet. Mix and pump dry job. Continue pulling out of hole laying down 4" drill pipe from 2777' to 1833'. 5/10/2009: Continue pulling out of hole laying down 4" drill pipe from 1833' to top of 5" HWDP at 662'. Remove corrosion ring from last joint of 4" drill pipe. Break and lay down crossover. Pull, break and lay down 5" HWDPand jars. Break and lay down bit sub and bit. Remove float from bit sub. Lay down make up tongs. Rig down and load off all rig floor bit subs, drill pipe tools, rotary tools, spinners, and tongs. Pull wear bushing. Change out bails and elevators. Pick up, make up and set 3 1/2" test joint. Make up floor valves. Rig up test equipment. Test 2 7/8" by 5 1/2" variable rams to 250psi Low / 3500psi High for 5 minutes. Test safety valves to 250psi Low / 3500psi High for 5 minutes. Rig down test equipment. Pull and lay down test joint. Clear and clean rig floor. Prepare for highline operations to run in EXCAPE production modules and tubing. Pick up, install and rig up Weatherford tongs, casing running tools, handling tools and accessory equipment. Install fill -up head. Rig up Weatherford fill -up line, circulating line, and floor valves. Use crane to position sheave with control lines previously fed through and aligned. Pull 2 control lines and protector dummy line down to floor and tie off. Rig up Pollard Wireline Service to perform banding of control lines. Inspect and insure that staged modules are in correct order on short pipe rack. 10 modules are to be run. Hold pre -job meeting with all hands on procedures and safety for running 3 1/2" EXCAPE completion string as per Marathon program. Pick up, make up and run in shoe tract (Davis Lynch Float Shoe, 1 standard joint, Davis Lynch Float Collar). Check floats. Continue • running rathole section in hole (30 more standard joints) to 966'. Carefully pick up, make up and run in hole the modules section of the 3 1/2" EXCAPE completion string (10 EXCAPE modules, 39 standard joints, 15 pup joints, 2 chemical injection modules). Attach and make up the control lines as required. Run modules section in hole from 966' to 2715'. Rig up circulating head and 2" line. Break circulation and bring pumps up slowly. Circulate 997 strokes (29.8 bbls at 100spm, 238psi, 125.3gpm). Continue running in hole with 3 1/2" EXCAPE casing from 2715' to 7085' (just inside 9 5/8" shoe). Rig up circulating head and 2" line. Begin circulating, bringing pumps up slowly. Circulate 2359 strokes (70.4 bbls at 168spm, 850psi, 210.6gpm). Cease pumping and continue running in hole with 3 1/2" EXCAPE casing from 7085' (to 7332'). [I EPOCH 18 M ) MARATHON OIL COMPANY KBU 42 -6X • 5/11/2009: Continue running in hole with 3 1/2" EXCAPE casing from 7332' to 10240'. Terminate control lines and cable. Lower down sheave with crane and then rig down and load off. Move out pipe racks after casing is run. Rig up circulating head and lines. Circulate while slowly reciprocating pipe. Circulate bottoms up. Record 238 units of trip gas. Continue circulating (25875 total strokes at 1110psi, 168spm, 210gpm). Stop pumping and check for flow. Hold pre -job meeting with Expro Wireline Service on procedures and safety for wireline operations. Rig up EWS for running wireline logging tools. Run in hole with gamma logging assembly to correlate with previous logs and determine final positioning of EXCAPE modules. Log up from 9500' to 7000' and pull out of hole with wireline assembly. Make correlation determination with gamma log. Note that the shoe will be adjusted down 4.0' to 10244'. Rig down Expro WLS. Transfer 100 bbls of mud over to Hanson Tank prior to cement job. (Note inhibitor was added to the mud system in the last 24 hours). Vac truck with brine is lined out for cement job. Rig up cementing head and wash down line (out to slop tank). Head will have plug installed and a wash -up tee. Line up to BJ cementing unit. Lay down Weatherford tongs and slips. Clear and clean rig floor. Hold pre -job safety meeting with BJ on cementing procedures and safety for cement job. Pump 5.1 bbls of water to fill lines. Pressure test cementing lines to 3013psi. Bleed pressure. Mix and pump 29.0 bbls of 12.22ppg MCS -4D Spacer, and follow with 285.0 bbls of 15.8ppg cement slurry (1431 sacks of Class G cement plus accelerator chemicals mixed with 167.29 bbls water to obtain 4.91 gal /sk and yield 1.16 cuft/sk). Shut down, close valve to head and open wash -up valve. Pump water to clean out pumps and wash lines from floor out to slop tank. Close wash up valve and open to head. Drop wiper plug and change valves to pump out. Pump out plug with 3% KCI brine and continue pumping 89.4 bbls of brine to the displace cement. Record maximum 18 units of gas while displacing. Plug did not bump at calculated 89 bbl displacement. Stop pumping. Attempt to bleed off and check floats. Floats did not hold. Bleed back 3.5 bbls of fluid, close bleeder and pressure up casing string to 2400psi. Pump back the 3.5 bbls of fluid, shut in at cementing head and continue holding 2400psi on casing string. Cement in place. Begin waiting period on cement set up. Note 100% returns during cement job. Flush all 3 mud pumps, choke manifold, Topdrive, stack, and pump lines through the the pop -offs. Flush out mud manifold, choke lines, fill and trip lines, mix pumps, overhead lines and fluid pump -out lines. Pump out cellar and begin cleaning • up sub -base. Pump all flushed fluids off the rig to Vac trucks for haul -off. Clear and clean rig floor. Remove and load off drip pan. Nipple down, pull and remove riser. Remove and lay down mousehole. Begin pumping out and cleaning pits. Remove all but 4 bolts on stack (annular, double gate, mud cross, spacer spool). Pick up and put away the loose bolts. Rig down turnbuckles and unchain stack. Bleed off pressure on casing. Flush cementing head and lines back to slop tank. Remove and lay down cementing head. Nipple down and rig down flow nipple, choke line, kill line, bleeder, fill -up line and trip tank lines. Rinse, clean and pump out trip tank, and then remove actuator and pump. 5/12/2009: Continue cleaning pits and hauling off slop water. Remove variable rams. Rig down and remove accumulator lines, panic line, kill line check valve and chokeline hardline. Prepare stack for removal. Rig up and test 3 1/2" casing to 2500psi for 30 minutes. Run control lines and electric line through 3 1/2" packoff to tubing bonnet assembly. Terminate control lines with Swagelok fittings. Hold pre -job meeting on setting casing slips. Pull 90 K -Ibs (including 15 block wt.) and set 3 1/2" casing slips with 75 K -Ibs of actual tension on tubing hanger. Rig up bridge cranes to BOP stack. Pickup, slide, move out and rack BOP stack Remove spacer spool and annular preventer from stack and finish nipple down. Make rough cut above the slips on 3 1/2" casing. Pull and lay down landing joints. Make final clean cut on 3 1/2" casing and dress. Set and install packoff. Run in lock -down pins. Rig down all lines to #3 mud pump module and prep module for transport and cold storage. Rig down standpipe manifold. Begin rig down and transport of all Glacier No.1 components to day work location. Load trailers with third party equipment for transport to home facilities. Finish cleaning pits and tanks. Pump off final fluids to Vac trucks. Test packoff to 5000psi for 10 minutes. Run control lines out tubing head outlet. Nipple up 13 5/8" 5M by 3 1/16" 10M tubing head adaptor and the 3 1/16" 10M tree. Terminate control lines through the bottom flange. Set 2 -way check valve in tubing hanger. Test void to 5000psi. Fill tree with methanol and test to 5000psi for 10 minutes. Install BPV. Install EXCAPE control line warning sign. Completion is to be done without a rig. Proceed with rigging down and moving all Glacier No.1 rig modules, rig equipment, support trailers, communication equipment, camp trailers and camp accessory equipment across the Kenai Gas Field to a maintenance location on the G &I Pad for installing a new Topdrive unit. 40 El EPOCH 19 • • • 4 4 * MARATHON OIL COMPANY KBU 42 -6X 4.2. SURVEY RECORD Rectangular Rectangular Measured Inclination Azimuth TVD Vertical Coordinate Coordinate Closure Closure DLS Depth Section Azimuth ( +) N/S ( -) ( +) E/W ( -) (ft) ( deg) (deg) (ft) (ft) (ft) (ft) (ft) (deg) ( deg /100ft) 0 0.00 000.00 0 0 0 0 0 0 0 219 1.66 282.65 218.97 0.39 _ 0.69 -3.10 3.17 282.65 0.76 279 3.67 271.76 278.90 0.38 0.94 -5.86 5.94 279.15 3.44 338 6.23 269.84 337.68 -0.07 0.99 -10.95 11.00 275.18 4.35 399 9.50 265.85 398.10 -1.24 0.62 -19.29 19.30 271.84 5.43 459 13.52 264.90 456.88 -3.36 -0.36 -31.21 31.22 269.33 6.71 518 15.63 266.86 513.98 -5.83 -1.41 -46.02 46.04 268.24 3.67 I 578 18.55 269.20 571.32 -8.10 -1.99 -63.64 63.67 268.21 5.00 637 19.04 269.89 627.17 -10.08 -2.14 -82.65 82.67 268.52 0.91 697 19.62 273.27 683.79 -11.43 -1.58 - 102.49 102.50 269.12 2.10 757 22.21 279.08 739.84 -11.12 0.78 - 123.75 123.76 270.36 5.53 828 25.73 287.58 804.73 -7.07 7.56 - 151.71 151.90 272.85 6.93 892 27.19 292.95 862.03 0.22 17.46 - 178.43 179.28 275.59 4.38 854 26.82 298.17 917.28 9.85 29.59 - 203.80 205.94 278.26 3.87 1018 26.74 303.02 974.42 22.06 44.25 - 228.61 232.85 280.96 3.42 1081 27.58 307.47 1030.48 36.32 60.85 - 252.07 259.31 283.57 3.49 1145 27.90 312.47 1087.13 53.16 79.98 - 274.88 286.27 286.22 3.67 1209 28.17 316.19 1143.63 72.01 100.99 - 296.38 313.11 288.82 2.76 1272 28.29 320.21 1199.14 92.20 123.19 - 316.23 339.38 291.28 3.02 1335 28.63 324.95 1254.53 114.17 147.02 - 334.46 365.35 293.73 3.62 1399 29.50 329.33 1310.48 138.54 173.13 - 351.30 391.65 296.24 3.59 1462 30.08 334.11 1365.16 164.54 200.68 - 366.11 417.50 298.73 3.88 1525 30.38 338.20 1419.60 192.17 229.68 - 378.92 443.10 301.22 3.30 1589 30.92 343.03 1474.67 221.74 260.44 - 389.73 468.74 303.75 3.94 1652 31.19 347.54 1528.64 252.22 291.85 _ - 397.98 493.52 306.25 3.72 1716 32.31 352.07 1583.07 284.62 324.98 - 403.91 518.42 308.82 4.11 1779 33.37 356.61 1636.01 318.12 358.96 - 407.26 542.88 311.39 4.25 �1 EPOCH 20 • • • M MARATHON OIL COMPANY KBU 42 -6X Vertical Rectangular Rectangular Closure Measured Inclination Azimuth TVD Section Coordinate Coordinate Closure Azimuth DLS Depth ( +) N/S ( -) ( +) E/W ( -) (ft ) (deg) (deg) (ft) (ft) (ft ) (ft ) (ft) (deg) ( deg /100ft ) 1843 34.79 0.61 1689.03 353.71 394.79 - 408.11 567.82 314.05 4.14 1906 36.65 2.65 1740.17 390.40 431.55 - 407.05 593.23 316.67 3.51 1969 39.12 1.58 1789.89 429.01 470.21 - 405.63 620.99 319.22 4.06 2033 41.91 1.14 1838.54 470.47 511.77 - 404.65 652.42 321.67 4.38 2095 43.63 0.51 1884.05 512.43 553.87 - 404.05 685.58 323.89 2.86 2159 43.73 0.08 1930.34 556.45 598.07 - 403.82 721.63 325.97 0.49 2223 44.40 0.80 1976.33 600.78 642.57 - 403.47 758.74 327.88 1.31 2286 46.18 2.73 2020.65 645.45 687.32 - 402.08 796.29 329.67 3.57 2348 47.68 3.18 2062.99 690.70 732.55 - 399.75 834.52 331.38 2.48 2412 49.99 5.73 2105.12 738.86 780.57 - 395.99 875.27 333.10 4.69 2464 51.65 6.92 2137.97 779.16 820.63 - 391.54 909.25 334.49 3.65 2581 48.94 8.73 2212.71 869.09 909.80 - 379.32 985.70 337.37 2.60 2644 49.00 10.63 2254.07 916.49 956.64 - 371.32 1026.18 338.79 2.28 2707 49.58 11.22 2295.16 964.03 1003.53 - 362.27 1066.92 340.15 1.16 2770 51.97 12.94 2334.99 1012.50 1051.24 - 352.05 1108.63 341.48 4.34 2834 53.90 14.30 2373.57 1063.06 1100.87 - 340.02 1152.18 342.84 3.46 2897 54.39 15.41 2410.47 1113.44 1150.22 - 326.92 1195.78 344.13 1.63 2960 54.25 15.63 2447.21 1163.84 1199.53 - 313.23 1239.75 345.37 0.36 3024 54.72 16.91 2484.39 1215.02 1249.54 - 298.64 1284.73 346.56 1.79 3087 53.38 17.06 2521.38 1265.00 1298.31 - 283.74 1328.95 347.67 2.14 3151 53.04 16.38 2559.71 1315.27 1347.40 - 268.99 1373.99 348.71 1.00 3214 54.88 16.52 2596.77 1365.29 1396.25 - 254.57 1419.27 349.67 2.93 3278 55.86 15.32 2633.14 1417.08 1446.89 - 240.13 1466.68 350.58 2.17 3341 55.66 15.66 2668.59 1468.38 1497.08 - 226.22 1514.08 351.41 0.55 3402 55.04 15.42 2703.27 1517.79 1545.43 - 212.77 1560.01 352.16 1.07 3466 55.34 15.67 2739.81 1569.54 1596.05 - 198.69 1608.37 352.90 0.57 3529 56.05 16.34 2775.31 1620.71 1646.08 - 184.34 1656.37 353.61 1.43 3592 55.95 16.16 2810.54 1672.03 1696.22 - 169.72 1704.69 354.29 0.29 3652 55.76 16.25 2844.22 1720.82 1743.90 - 155.87 1750.85 354.89 0.34 3715 55.57 16.43 2879.75 1771.92 1793.82 - 141.23 1799.38 355.50 0.38 Li EPOCH 21 • • S Q MARATHON OIL COMPANY KBU 42 -6X Rectangular Rectangular Measured Inclination Azimuth TVD Vertical Coordinate Coordinate Closure Closure DLS Depth Section Azimuth ( +) N/S ( -) ( +) E/W ( -) (ft ) (deg) (deg) (ft ) (ft ) (ft ) (ft ) (ft) (deg) (deg /100ft) 3779 55.16 15.78 2916.13 1823.68 1844.42 - 126.62 1848.76 356.07 1.05 3842 54.84 16.28 2952.26 1874.42 1894.02 - 112.37 1897.35 256.60 0.83 3905 54.45 16.42 2988.72 1924.89 1943.32 -97.91 1945.78 357.12 0.65 3968 54.27 15.86 3025.43 1975.21 1992.50 -83.68 1994.26 357.60 0.78 4032 54.45 15.06 3062.72 2026.44 2042.63 -69.81 2043.82 358.04 1.05 4095 54.30 14.86 3099.42 2076.96 2092.10 -56.59 2092.87 358.45 0.35 4159 53.69 14.52 3137.04 2128.07 2142.18 -43.46 2142.63 358.84 1.05 4222 53.86 14.20 3174.27 2178.29 2191.42 -30.86 2191.64 359.19 0.49 4286 53.71 13.28 3212.08 2229.39 2241.58 -18.59 2241.65 359.52 1.18 4350 53.58 13.29 3250.02 2280.46 2291.74 -6.75 2291.75 359.83 0.20 4412 54.43 13.02 3286.46 2330.18 2340.58 4.67 2340.59 0.11 1.42 4476 55.82 13.23 3323.05 2382.22 2391.72 16.59 2391.77 0.40 2.19 4539 55.64 14.00 3358.53 2433.77 2442.32 28.84 2442.49 0.68 1.05 4603 55.52 14.08 3394.70 2485.98 2493.53 41.65 2493.88 0.96 0.21 4667 55.43 13.50 3430.98 2538.16 2544.74 54.22 2545.32 1.22 0.76 4729 55.29 14.24 3466.22 2588.63 2594.26 66.45 2595.11 1.47 1.01 4793 55.10 14.21 3502.75 2640.57 2645.20 79.36 2646.39 1.72 0.30 4856 54.88 13.56 3538.89 2691.62 2695.29 91.74 2696.86 1.95 0.91 4920 54.69 13.93 3575.80 2743.37 2746.09 _ 104.17 2748.06 2.17 0.56 4983 54.45 13.86 3612.32 2794.16 2795.92 116.50 2798.34 2.39 0.39 5047 54.22 14.27 3649.64 2845.58 2846.35 129.13 2849.28 2.60 0.63 5110 53.93 13.72 3686.60 2896.03 2895.86 141.47 2899.31 2.80 0.84 5174 53.83 14.35 3724.33 2947.16 2946.01 154.01 2950.03 2.99 0.81 5237 53.53 13.81 3761.64 2997.36 2995.25 166.36 2999.86 3.18 0.84 5300 52.86 14.89 3799.39 3047.20 3044.11 178.86 3049.36 3.36 1.74 5364 51.48 15.34 3838.64 3097.04 3092.91 192.03 3098.87 3.55 2.23 5427 49.28 16.62 3878.81 3144.76 3139.56 205.38 3146.27 3.74 3.83 5491 46.41 17.57 3921.76 3191.24 3184.91 219.32 3192.45 3.94 4.62 5554 43.29 18.06 3966.42 3234.64 3227.21 232.91 3235.60 4.13 4.98 El EPOCH 22 • • • M MARATHON OIL COMPANY KBU 42 -6X Rectangular Rectangular Measured Inclination Azimuth TVD Vertical Coordinate Coordinate Closure Closure DLS Depth Section Azimuth ( +) N/S ( -) ( +) E/W ( -) (ft ) (deg) (deg) (ft ) (ft ) (ft) (ft ) (ft ) (deg) ( deg /100ft) 5617 41.17 18.80 4013.06 3275.92 3267.38 246.29 3276.65 4.31 3.46 5681 39.03 18.97 4062.02 3316.02 3306.38 259.63 3316.56 4.49 3.35 5744 36.95 20.65 4111.67 3353.60 3342.86 272.76 3353.97 4.66 3.69 5808 34.89 20.00 4163.49 3389.89 3378.07 285.80 3390.13 4.84 3.27 5870 33.08 18.51 4214.90 3423.55 3410.78 297.24 3423.70 4.98 3.21 5934 31.16 17.42 4269.10 3456.78 3443.14 307.74 3456.87 5.11 3.13 5997 29.40 16.41 4323.51 3487.91 3473.53 316.99 3487.96 5.21 2.91 6061 28.05 15.05 4379.63 3518.18 3503.13 325.34 3518.21 5.31 2.34 6123 26.52 14.47 4434.73 3546.23 3530.61 332.58 3546.24 5.38 2.50 6187 24.53 14.71 4492.48 3573.46 3557.30 339.53 3573.47 5.45 3.11 6249 23.43 14.59 4549.13 3598.34 3581.68 345.90 3598.34 5.52 1.78 6312 21.98 12.59 4607.25 3622.41 3605.31 351.62 3622.41 5.57 2.61 6376 19.57 11.60 4667.08 3644.96 3627.50 356.39 3644.97 5.61 3.81 6439 17.27 11.81 4726.85 3664.75 3646.99 360.43 3664.76 5.64 3.65 6502 15.37 12.72 4787.31 3682.33 3664.29 364.18 3682.34 5.68 3.04 6565 13.23 12.82 4848.35 3697.77 3679.47 367.62 3697.79 5.71 3.40 6629 11.54 12.18 4910.86 3711.39 3692.87 370.59 3711.41 5.73 2.65 6692 9.37 9.04 4972.81 3722.77 3704.09 372.73 3722.80 5.75 3.56 6756 7.30 10.47 5036.13 3732.02 _ 3713.24 374.29 3732.05 5.76 3.25 6819 5.55 17.55 5098.73 3738.99 3720.08 375.93 3739.02 5.77 3.04 6883 3.58 27.17 5162.53 3743.87 3724.81 377.78 3743.92 5.79 3.29 6944 1.83 39.26 5223.46 3746.45 3727.26 379.27 3746.50 5.81 3.00 7008 0.89 30.99 5287.44 3747.75 3728.47 380.17 3747.80 5.82 1.50 7045 0.92 44.62 5324.44 3748.24 3728.93 380.53 3748.30 5.83 0.59 7162 0.99 22.91 5441.42 3749.94 3730.53 381.58 3749.99 5.84 0.31 7288 0.56 33.45 5567.41 3751.52 3732.05 382.34 3751.58 5.85 0.36 7414 0.50 35.73 5693.40 3752.54 3733.01 383.00 3752.60 5.86 0.05 7603 0.65 33.14 5882.39 3754.20 3734.57 384.07 3754.27 5.87 0.08 7792 0.86 357.92 6071.38 3756.56 3736.89 384.60 3756.63 5.88 0.26 El EPOCH 23 • • • M MARATHON OIL COMPANY KBU 42 - Rectangular Rectangular Measured Inclination Azimuth TVD Vertical Coordinate Coordinate Closure Closure DLS Depth Section ( +) N/S ( -) ( +) E/W ( -) Azimuth (ft) (deg) (deg) (ft) (ft ) (ft ) (ft) (ft) (deg) ( deg /100ft) 7981 0.36 1.78 6260.37 3758.55 3738.90 _ 384.57 3758.63 5.87 0.27 8170 0.70 334.08 6449.36 3760.13 3740.53 384.09 3760.20 5.86 0.22 8293 0.34 307.12 6572.35 3760.96 3741.43 383.47 3761.03 5.85 0.35 8485 0.34 266.01 6764.35 3761.17 3741.73 382.44 3761.23 5.84 0.12 8674 0.17 253.90 6953.35 3760.97 3741.62 381.61 3761.03 5.82 0.09 8862 0.25 259.47 7141.35 3760.76 _ 3741.46 380.94 3760.81 5.81 0.04 9051 0.15 199.14 7330.34 3760.40 3741.15 380.46 3760.45 5.81 0.12 8240 0.28 272.51 7519.34 3760.14 3740.94 379.91 3760.18 5.80 0.15 9429 0.31 209.77 7708.34 3759.65 3740.52 379.20 3759.69 5.79 0.16 9619 0.93 225.50 7898.33 3758.00 3738.99 377.84 3758.03 5.77 0.34 9808 0.52 234.54 8087.31 3756.26 3737.42 376.05 3756.29 5.75 0.22 9934 0.66 250.33 8213.31 3755.58 3736.84 374.90 3755.60 5.73 0.17 10123 0.68 235.26 8402.29 3754.39 3735.84 372.96 3754.41 5.70 0.09 10226 1.03 209.94 8505.28 3753.15 3734.69 371.99 3753.17 5.69 0.49 * *10278 ** 1.03 209.94 8557.27 3752.30 3733.88 371.52 3752.31 5.68 0.00 * *Projected ** El EPOCH 24 • • • M i1WA/M0 MARATHON OIL COMPANY KBU 42 -6X 4.3. MUD RECORD Contractor: MI Drilling Fluids Mud Types: Spud Mud 110' - 2540'; 3% KCI Flo -Pro 2540' - 10278' DATE MD / TVD MW VIS PV YP GELS FL FC SOL OIL/H2O SD MBT pH Alk CI- Ca+ 4/16/09 110 / 110 9.0 58 12 13 7/14/16 14.5 3 3.0 /97 Tr 12.5 10.2 0.20 500 40 4/16/09 380 / 379 9.3 74 30 35 11/28/37 13 3 5.0 /95 0.75 20.0 10.2 0.15 400 40 4/17/19 1029 / 984 9.3 70 23 24 8/23/27 14 3 5.0 /95 1 20.0 9.9 0.10 300 40 4/17/09 1778 / 1635 9.3 90 27 24 10/20/24 8.5 2 5.0 /95 1 20.0 10.0 0.10 500 60 4/18/09 2520 / 2172 9.4 96 28 39 11/18/21 7.5 2 6.0 /94 0.75 22.5 9.2 0.05 600 80 4/19/09 2520 / 2172 9.5 117 34 28 9/14/17 7.5 2 6.5 /94 0.75 22.5 9.0 0.05 550 100 4/20/09 2520 / 2172 9.2 41 13 3 2/2/ 9.5 1 4.0 /96 0.15 15.0 8.5 500 40 4/21/09 2610 / 2241 8.8 54 11 15 9/13/ 5.5 1 1.5 3/96 1.0 9.4 0.10 22000 160 4/22/09 3210 / 2594 9.2 51 12 _ 17 8/10/12 5.8 1 5.0 3/92 1.5 6.0 9.4 0.15 23000 160 4/22/09 4253 / 3193 9.3 58 14 23 11/13/ 6.8 1 6.0 3/91 0.5 8.75 9.2 0.10 21000 300 4/23/09 4842 / 3531 9.4 66 16 31 12/16/18 6.6 1 7.0 3/90 0.1 11.0 9.3 0.10 21000 520 4/24/09 5360 / 3836 9.6 61 15 22 9/14/16 6 1 9.0 1/90 0.75 10.0 8.7 0.01 18000 560 4/24/09 5426 / 3878 9.3 63 14 19 8/12/ 5.8 1 7.0 3/90 2 6.25 9.2 0.10 18500 360 4/25/09 5794 / 4152 9.5 60 16 23 9/12/14 5.6 1 10.0 3/87 0.5 11.0 8.9 0.05 19500 360 4/25/09 6189 / 4494 9.6 66 16 25 10/15/17 5.4 1 10.0 3/87 2 13.5 8.9 0.10 20000 400 4/26/09 6413 / 4702 9.6 72 18 36 15/21/23 5.6 1 10.0 4/86 0.25 12.5 9.3 0.05 19000 360 4/26/09 6821 / 5101 9.6 85 20 43 19/27/ 6.4 2 10.0 4/86 0.2 13.75 9.7 0.15 19000 200 4/27/09 7105 / 5384 9.7 58 16 31 13/17/21 6.8 1 10.0 4/86 0.1 11.0 9.4 0.15 15500 160 4/28/09 7105 / 5384 9.5 60 16 29 12/15/17 7.2 1 8.0 4/88 Tr 12.0 9.4 0.10 14000 160 4/29/09 7105 / 5384 9.3 43 13 17 7/9/ 7.4 1 10000 4/30/09 7105 / 5384 8.8 48 8 20 5/8/8 6.6 1 3.0 /97 Tr 1.0 9.2 14000 100 5/1/09 7105 / 5384 9.2 51 9 24 7/11/11 6.8 1 5.0 Tr /95 9.2 0.35 16000 100 5/2/09 7150 / 5429 9.2 48 12 19 7/10/10 6.8 1 5.0 2/94 Tr 1.0 9.4 0.45 20000 160 5/2/09 7560 / 5839 9.2 53 14 20 8/11/12 6.4 1 5.2 2/93 Tr 1.0 9.7 0.50 20000 150 El EPOCH 25 • O • M MARATHON OIL COMPANY KBU 42 -6X Contractor: MI Drilling Fluids Mud Type: 3% KCI Flo-Pro 2540' - 10278' DATE MD / TVD MW VIS PV YP GELS FL FC SOL OIL/H2O SD MBT pH AIk CI- Ca+ 5/3/09 8342 / 6621 9.7 55 15 27 11/14/15 6.2 1 8.0 2/90 Tr 0.0 9.0 0.35 20000 120 5/3/09 8550 / 6829 9.7 55 16 26 11/14/15 5.6 1 8.0 3/90 Tr 1.5 9.0 0.35 19000 100 5/4/09 9479 / 7758 10.2 56 16 26 11/15/16 5.5 1 9.5 3.5/87.5 Tr 4.5 9.3 0.30 20000 120 5/5/09 10030 / 8310 11.1 57 s 24 29 12/17/19 5.2 1 13.5 4/83 0.33 7.0 9.8 0.50 19000 100 5/5/09 10278 / 8557 11.4 60 24 32 12/17/19 5.1 1 15.0 4/81 0.5 7.5 9.8 0.50 19000 100 5/6/09 10278 / 8557 11.3 70 23 34 14/18/19 5.0 1 15.5 5/80 0.35 8.0 10.0 0.55 19000 100 5/7/09 10278 / 8557 11.3 64 24 32 14/18/19 5.1 1 15.5 5/80 0.33 8.0 9.8 0.45 19000 100 5/8/09 10278 / 8557 11.3 63 15 32 12/16/18 5.2 1 16.5 5/79 0.33 9.0 9.8 0.45 19000 100 5/9/09 10278 / 8557 11.5 67 24 33 14/19/20 6.2 1 s 17.0 5/79 0.35 10.0 10.5 0.60 17000 100 5/10/09 10278 / 8557 11.7 65 23 26 11/15/17 5.8 1 16.0 5/80 0.35 10.0 10.0 0.50 17000 100 5/11/09 Surface 8.5 28 1 1 KCL Brine 7.7 21000 • El EPOCH 26 • S • I """" MARATHON OIL COMPANY KBU 42 -6X 4.4. BIT RECORD BIT SIZE JETS/ AVE WOB PP NO. TYPE S/N TFA IN OUT FT HRS ROP Lo — Avg — Hi RPM Lo — Avg CONDITION — Hi 1 16„ HTC 1065969 3x16, 21 132 n/a n/a n/a n/a n/a n/a NG RR1 MX -1 1x18cj _ Drill out conductor only 2 16" HTC 6072204 3x18, 132 2520 2388 24.72 112.3 0.3— 12.9 — 58 392 —1205 1- 1- NO- A- E- 1 -NO -TD MX -1 1 x16cj 34.6 —1731 3 12.25 HCC 7015569 6x13 2520 7105 4585 62.81 100.6 0.2 — 12.0 — 70 642 — 1232 0- 2- WT- G- X- 1 -BT -TD HCM506Z 47.8 —1850 4 8.5 HCC 7114328 6x13 7105 10278 3173 38.43 94.7 1.4 —11.8 — 60 985 — 1830 HCM503ZX 49.6 — 2658 5RR 8.5 MXLC1 6054215 Open 10278 10278 0 n/a n/a n/a n/a n/a Clean out run only [1 EPOCH 27 DEPTH (FT) • O CO CO v 0) (T ? 0) N O O O 0 O O O 0 0 O 0 0 0 0 0 0 0 0 0 0 0 O U) O O_ O_ O_ O_ O_ O_ O O_ O_ O O_ O 4/16/2009 I- r 4/17/2009 G7 4/18/2009 O O 4/19/2009 • �7 m 4/20/2009 • Cr) C) 4/21/2009 -1 4/22/2009 4/23/2009 4/24/2009 4/25/2009 -I 0 4/26/2009 Z 0 0 • r 4/27/2009 n ` O 0 4/28/2009 °n D D y Z M • w c c m A 4/30/2009 o c X N A 5/1/2009 ° X 5/2/2009 5/3/2009 5/4/2009 5/5/2009 5/6/2009 - • 5/7/2009 - • f f co 5/8/2009 - • N) 17 A O 5/9/2009 - • o I m ( T ) o (o 5/10/2009 - • N Co 5/11/2009 - • 5/12/2009 - • Marathon Oil Company • Kenai Gas Field DAILY WELLSITE REPORT EPOCH KBU 42 -6X REPORT FOR John Nicholson / Dan Byrd DATE April 15, 2009 DEPTH 132 PRESENT OPERATION Preparing to drill out conductor TIME 24:00 YESTERDAY 132 24 HOUR FOOTAGE 0 CASING INFORMATION 20" @ 132' DEPTH INCLINATION AZIMUTH VERTICAL DEPTH SURVEY DATA BIT INFORMATION INTERVAL CONDITION REASON NO. SIZE TYPE S/N JETS IN OUT FOOTAGE HOURS T /B /C PULLED 1RR1 16.0 HCC MX -1 1065969 3x16 1x18 DRILLING PARAMETERS HIGH LOW AVERAGE CURRENT AVG RATE OF PENETRATION @ @ FT /HR SURFACE TORQUE @ @ AMPS WEIGHT ON BIT @ © KLBS ROTARY RPM © @ RPM PUMP PRESSURE © © PSI DRILLING MUD REPORT DEPTH 132 / 132 MW 9.0 VIS 58 PV 12 YP 13 FL 14.5 Gels 7/14 CL- 500 FC 3 SOL 3.0 SD Tr OIL 0/97 MBL 12.5 pH 10.2 Ca+ 40 CCI MWD SUMMARY INTERVAL TO TOOLS III GAS SUMMARY (units) HIGH @ LOW AVERAGE DITCH GAS @ TRIP GAS CUTTING GAS @ @ WIPER GAS CHROMATOGRAPHY (ppm) SURVEY METHANE (C -1) © © CONNECTION GAS HIGH ETHANE (C -2) @ @ AVG PROPANE (C -3) @ @ CURRENT BUTANE (C -4) @ © CURRENT BACKGROUND /AVG PENTANE (C -5) © @ HYDROCARBON SHOWS INTERVAL LITHOLOGY /REMARKS GAS DESCRIPTION LITHOLOGY PRESENT LITHOLOGY Call out full crews and start preparations for spudding well. Rig up shock hoses. Put cellar grating in place. Install pump #3 suction and pop -off lines. Spot initial diverter section. Lubricate /grrease carrier, Topdrive and crown. Pull lines for gas alarms. Troubleshoot and retighten loose altemator on carrier. Change oil and filter on #2 transmission. Install flowline extension. Pull out bridge crane beams. Cut and dress 20" conductor. DAILY Weld 2" nipple on conductor. Install 20" SLC x 21 1/4" starter head and test to 300psi for 10 minutes. Rig up /connect kill line to conductor. Nipple ACTIVITY up diverter system (diverter stack, 21 1/4" 2M diverter, 16" diverter valve, 16" diverter line). Install 4" valves on starter head. Nipple up knife valve. SUMMARY Remove butt plug. Spot BJ cementing unit and cement silos. Pump through #1 and #2 mud pump pop -offs and pin to 3500psi. Rig up bleeder line, fill -up line, trip tank hose and actuator. Chain stack and adjust position and tension. Rig up trip tank pump. Rig up hydraulic lines. Test mud all three mud pumps. Check interlocks and ESDs. Begin mixing spud mud. Set up pipe racks. Begin loading and prepping drill pipe. Install mouse hole. Test diverter, diverter valves, flow line, gas alarms, PVT and accumulator. Rig up pipe handling equipment. Measure, pick up and make up 16" bit, bit sub and crossover. EPOCH PERSONNEL ON BOARD 1 DAILY COST Holding: 350 RW: 480 REPORT BY Craig Silva III Marathon Oil Company • Kenai Gas Field DAILY WELLSITE REPORT EPOCH KBU 42 -6X REPORT FOR John Nicholson / Dan Byrd DATE Apr 16, 2009 DEPTH 455 PRESENT OPERATION Drilling TIME 24:00 YESTERDAY 132 24 HOUR FOOTAGE 323 CASING INFORMATION 20" © 132' DEPTH INCLINATION AZIMUTH VERTICAL DEPTH 219 1.66 282.65 218.97 279 3.67 271.76 278.90 SURVEY DATA 338 6.23 269.84 337.68 399 9.50 265.85 398.10 459 13.52 264.90 456.88 BIT INFORMATION INTERVAL CONDITION REASON NO. SIZE TYPE S/N JETS IN OUT FOOTAGE HOURS T /B /C PULLED 1RR1 16.0 HCC MX -1 1065969 3x16 1x18 132 132 0 n/a NG Clean out run only 2 16.0 HCC MX -1 7015569 3x18 1x16cj 132 323 4.23 In Hole DRILLING PARAMETERS HIGH LOW AVERAGE CURRENT AVG RATE OF PENETRATION 393.7 @ 168 6.9 © 207 97.5 92.0 FT /HR SURFACE TORQUE 3020 @ 189 0 © Sliding 1132.5 768.2 AMPS WEIGHT ON BIT 15 © 371 0.6 © 277 4.6 7.8 KLBS ROTARY RPM 52 @ 188 0 @ Sliding 5.2 Sliding RPM PUMP PRESSURE 743 @ 371 392 @ 170 572.6 680.0 PSI DRILLING MUD REPORT DEPTH 380 / 379 TVD MW 9.3 VIS 74 PV 30 YP 35 FL 13.0 Gels 11/28/37 CL- 400 FC 3 SOL 5.0 SD 0.75 OIL 0/95 MBL 20.0 pH 10.2 Ca+ 40 CCI • MWD SUMMARY INTERVAL TO TOOLS GAS SUMMARY (units) HIGH LOW AVERAGE DITCH GAS @ @ TRIP GAS CUTTING GAS @ @ WIPER GAS CHROMATOGRAPHY (ppm) SURVEY METHANE (C -1) @ @ CONNECTION GAS HIGH ETHANE (C -2) @ @ AVG PROPANE (C -3) @ @ CURRENT BUTANE (C -4) @ @ CURRENT BACKGROUND /AVG PENTANE (C -5) @ @ HYDROCARBON SHOWS INTERVAL LITHOLOGY /REMARKS GAS DESCRIPTION LITHOLOGY PRESENT LITHOLOGY Finish mixing and pre - conditioning spud mud. Run inside 20" conductor with 16" bit on 5" drill pipe and tag fill at 21'. Break circulation and clean out conductor from 21' to 132' (base of conductor). Pull out of hole. Lay down crossover, bit sub and bit. Tally all tubulars on pipe racks. Pick up, DAILY drift, make up, stand back in derrick and strap 5" drill pipe, 5" HWDP and jars. Measure out and stage directional bottom hole assembly. Hold ACTIVITY weekly safety meeting with all hands. Pick up, make up and run in hole lower section of bottom hole assembly. Break circulation. Drill out of SUMMARY conductor at 132' and Spud Well (at 15:19 hours). Drill from 132' to 171'. Circulate hole clean. Pull partially out of hole from 171' to 110'. Run back in hole, picking up shock sub, flex collars, crossovers and first stand of 5" HWDP. (Note drilling to 800' will be on stands of 5" HWDP and jars). Break circulation. Drill (rotating and sliding) from 171' to 455'. EPOCH PERSONNEL ON BOARD 1 DAILY COST ML: 900 RW: 480 REPORT BY Craig Silva • Marathon Oil Company • Kenai Gas Field DAILY WELLSITE REPORT EPOCH KBU 42 -6X REPORT FOR John Nicholson / Dan Byrd DATE Apr 17, 2009 DEPTH 1984 PRESENT OPERATION Drilling TIME 24:00 YESTERDAY 455 24 HOUR FOOTAGE 1529 CASING INFORMATION 20" @ 132' DEPTH INCLINATION AZIMUTH VERTICAL DEPTH 518 15.63 266.86 513.98 892 27.19 292.95 862.03 SURVEY DATA 1272 28.29 320.21 1199.14 1589 30.92 343.03 1474.67 1969 39.12 001.58 1789.89 BIT INFORMATION INTERVAL CONDITION REASON NO. SIZE TYPE S/N JETS IN OUT FOOTAGE HOURS T /B /C PULLED 2 16.0 HCC MX -1 6072204 3x18 1x16cj 132 1852 19.13 In Hole DRILLING PARAMETERS HIGH LOW AVERAGE CURRENT AVG RATE OF PENETRATION 155.1 @ 1134 17.5 © 1777 115.7 61.6 FT /HR SURFACE TORQUE 8949 © 1369 0 @ Sliding 2069.5 787.6 AMPS WEIGHT ON BIT 34 @ 1369 0.9 © 628 13.8 27.0 KLBS ROTARY RPM 91 @ 673 0 © Sliding 58.3 56.3 RPM PUMP PRESSURE 1688 © 1369 605 @ 459 1234.8 1454.0 PSI DRILLING MUD REPORT DEPTH 1778 / 1635 TVD MW 9.3 VIS 90 PV 27 YP 24 FL 8.5 Gels 10/20/24 CL- 500 FC 2 SOL 5.0 SD 1.0 OIL 0/95 MBL 20.0 pH 10.0 Ca+ 60 CCI III MWD SUMMARY INTERVAL TO TOOLS GAS SUMMARY (units) HIGH LOW AVERAGE DITCH GAS © @ TRIP GAS CUTTING GAS @ © WIPER GAS CHROMATOGRAPHY (ppm) SURVEY METHANE (C -1) @ @ CONNECTION GAS HIGH 1 ETHANE (C -2) © @ AVG PROPANE (C -3) @ @ CURRENT BUTANE (C -4) @ @ CURRENT BACKGROUND /AVG PENTANE (C -5) @ © HYDROCARBON SHOWS INTERVAL LITHOLOGY /REMARKS GAS DESCRIPTION LITHOLOGY PRESENT LITHOLOGY DAILY ACTIVITY SUMMARY (Note drilling after 800' is on 5" drill pipe). Drill (sliding and rotating) from 455' to 1984'. EPOCH PERSONNEL ON BOARD 1 DAILY COST ML: 900 RW: 480 REPORT BY Craig Silva III III Marathon Oil Company Kenai Gas Field DAILY WELLSITE REPORT LEI EPOCH KBU 42 -6X REPORT FOR John Nicholson / Dan Byrd DATE Apr 18, 2009 DEPTH 2520 PRESENT OPERATION Preparing to run 13 3/8" casing TIME 24:00 YESTERDAY 1984 24 HOUR FOOTAGE 536 CASING INFORMATION 20" @ 132' DEPTH INCLINATION AZIMUTH VERTICAL DEPTH 2033 41.91 001.14 1838.54 2159 43.73 000.08 1930.34 SURVEY DATA 2286 46.18 002.73 2020.65 2348 47.68 003.18 2062.99 2464 51.65 006.92 2137.97 BIT INFORMATION INTERVAL CONDITION REASON NO. SIZE TYPE S/N JETS IN OUT FOOTAGE HOURS T /B /C PULLED 2 16.0 HCC MX -1 6072204 3x18 1x16cj 132 2520 2388 24.72 1- 1- NO- A- E -1 -NO -BHA Surface casing point DRILLING PARAMETERS HIGH LOW AVERAGE CURRENT AVG RATE OF PENETRATION 156.5 @ 2168 18.3 @ 2220 111.4 119.6 FT /HR SURFACE TORQUE 10302 @ 2495 0 © Sliding 3772.8 7584.0 AMPS WEIGHT ON BIT 34.6 @ 2211 2.4 @ 2038 15.2 8.3 KLBS ROTARY RPM 65 @ 2459 0 @ Sliding 58.6 56.2 RPM PUMP PRESSURE 1731 © 2425 1354 @ 2151 1504.8 1605.1 PSI DRILLING MUD REPORT DEPTH 2520 / 2172 TVD MW 9.5 VIS 84 PV 25 YP 27 FL 8.0 Gels 8/16/18 CL- 600 FC 1 SOL 6.5 SD 1.0 OIL 0/94 MBL 22.5 pH 9.5 Ca+ 120 CCI • MWD SUMMARY INTERVAL TO TOOLS GAS SUMMARY (units) HIGH LOW AVERAGE DITCH GAS @ @ TRIP GAS CUTTING GAS @ @ WIPER GAS CHROMATOGRAPHY (ppm) SURVEY METHANE (C -1) @ @ CONNECTION GAS HIGH ETHANE (C -2) @ @ AVG PROPANE (C -3) @ @ CURRENT BUTANE (C -4) @ @ CURRENT BACKGROUND /AVG I PENTANE (C -5) @ @ HYDROCARBON SHOWS INTERVAL LITHOLOGY /REMARKS GAS DESCRIPTI ON LITHOLOGY PRESENT LITHOLOGY Drill (sliding and rotating) from 1984' to 2520'. Circulate bottoms up. Pump around 30 bbl HiVis sweep and continue to circulate until hole is clean. Pull out of hole from 2520' to 140' on wiper trip. Lay down shock sub and 2 crossovers. Run back in hole from 140' to 2445'. Wash down from 2445' to 2520' (with no fill). Circulate bottoms up. Pump around 30 bbl HiVis and nutplug sweep and continue to circulate until hole is clean. Pump DAILY and spot 20 bbl pill on bottom. Check for flow. Pull out of hole from 2520' to top of bottom hole assembly at 800'. Pull and stand back 11 stands of ACTIVITY 5" HWDP (21 joints plus jars) and 1 stand of NMCSDP flex collars to 111'. Check filter in filter sub and dress 6 5 /8" Reg threads. Break and lay SUMMARY down NM crossover, filter sub and UPA sub. Pull, break, lay down and load off directional tools (MWD, NM crossover, NM pony collar, NM string stabilizer, X -Treme motor, bit). Grade bit. Blow down mud line, kill line and choke line. Clear and clean rig floor. Prepare to run 13 3/8" casing. Change out from short to long bails. Lay down pipe elevators. Install pick -up line. Move breakout tongs to driller's side and install correct tong head. Install fill -up line. Install casing elevators. Rig down pipe spinner. Change out from short to tall snub post. Rig up casing tongs. EPOCH PERSONNEL ON BOARD 1 DAILY COST ML: 900 RW: 480 REPORT BY Craig Silva ill a . Marathon Oil Company EPOCH III Kenai Gas Field DAILY WELLSITE REPORT El KBU 42 -6X REPORT FOR John Nicholson / Dan Byrd DATE Apr 19, 2009 DEPTH 2520 PRESENT OPERATION Pulling out of hole with stab -in tool after cementing TIME 24:00 YESTERDAY 2520 24 HOUR FOOTAGE 0 CASING INFORMATION 13 3/8" @ 2508' DEPTH INCLINATION AZIMUTH VERTICAL DEPTH SURVEY DATA 2520 (Projection) 51.65 6.92 2172.71 BIT INFORMATION INTERVAL CONDITION REASON NO. SIZE TYPE S/N JETS IN OUT FOOTAGE HOURS T /B /C PULLED DRILLING PARAMETERS HIGH LOW AVERAGE CURRENT AVG RATE OF PENETRATION @ @ FT /HR SURFACE TORQUE @ @ AMPS WEIGHT ON BIT @ @ KLBS ROTARY RPM @ @ RPM PUMP PRESSURE @ @ PSI DRILLING MUD REPORT DEPTH 2520 / 2173 TVD MW 9.5 VIS 117 PV 34 YP 28 FL 7.5 Gels 9/14/17 CL- 550 FC 2 SOL 6.5 SD 0.75 OIL 0/94 MBL 22.5 pH 9.0 Ca+ 100 CCI MWD SUMMARY INTERVAL TO TOOLS GAS SUMMARY (units) HIGH LOW AVERAGE DITCH GAS © © TRIP GAS • CUTTING GAS © @ WIPER GAS CHROMATOGRAPHY (ppm) SURVEY METHANE (C -1) @ @ CONNECTION GAS HIGH ETHANE (C -2) @ @ AVG PROPANE (C -3) @ @ CURRENT BUTANE (C -4) © @ CURRENT BACKGROUND /AVG PENTANE (C -5) @ @ HYDROCARBON SHOWS INTERVAL LITHOLOGY /REMARKS GAS DESCRIPTI ON LITHOLOGY PRESENT LITHOLOGY Rig up and test stabbing board. Remove rotary bushings and rig up casing spider slips. Tie one tugger line back in derrick for pipe pick -up and second tugger line back to hang casing tongs. Rig up Weatherford power tongs. Make up and function check EZ -turn valve onto casing swage for safety valve (and record in IADC). Stage centralizers and lock rings on rig floor. Clean casing threads of each shoe track joint before make up. Hold pre -job meeting with Weatherford hands on procedures and safety for running surface casing. Run 13 3/8" casing as per Marathon. Pick up, Bakerlok, make up and run in hole 13 3/8" shoe track (shoe joint, spacer joint, sting -in float collar). Check floats. Continue running in 13 3/8" casing as per Marathon and encounter differential sticking at 2501'. Attempt to wash down to bottom but unable to make progress. (Shoe estimated at 2501', float collar at 2456'). Land casing out on base plate. Rig down and load off all Weatherford casing running equipment. Rig down stabbing board. Rig down fill up line. Pre -treat mud with Sodium Bicarbonate while rigging Weatherford down. Clear rig floor. Change out bails, elevators, tongs and snubbing post to handle and run 5" drill pipe. Rig up and prep pipe spinner. Make up inner string tools (stab -in sub, 5' pup and 5" drill pipe centralizer on first tool joint) to 5" HWDP. Rig up false rotary for running 5" drill pipe inside 13 3/8" casing. Run in hole with 5" drill pipe to top of DAILY float collar at 2456'. Tag and sting into float collar and space out. Circulate and condition hole. Pre -treat mud with Sodium Bicarbonate and Desco ACTIVITY while stung in. Pump 200 bbls of mud to Hanson Tank prior to cementing. Build 40 bbls Mud Clean II preflush spacer. Rig up cementing lines. Hold SUMMARY pre -job meeting with BJ cementers and vac truck drivers on safety and procedures for cement job. Pump 40 bbls of 8.4ppg Mud Clean II (with 1 gallon red dye added) using rig pumps. Switch over to BJ pumping unit. Pump 2.1 bbls of water to fill cement lines. Pressure test to 2345psi. Bleed off pressure. Batch cement to 12.0ppg. Pump 181.0 bbls of 12.Oppg cement slurry (606 sacks Type I LW -6 cement and accelerator additives to 149.0 bbls of mix water for 10.328 gal water /sack and yield of 2.483 cu ft per sack). Finish pumping cement and then follow with 2.0 bbls of water and 38.0 bbls of 9.5ppg mud to displace. No losses during pumping with 40 bbls of cement and 242 bbls of total returns and back to the surface. Note 20 bbls of spacer and 15 bbls of cement dumped in cellar. Bleed off cement line pressure. Check floats. Cement in place. Cement returns treated with citric acid retarder. Begin wait on cement. Rig down and flush cementing head and lines and continue rigging down BJ. Unsting from float collar. Float holding. Pull out of hole 2 stands from 2456' to 2330' and rig up to pump ball down pipe. Install wiper dart into drill pipe box and sponge ball into Topdrive pin. Install 13 3/8" circulation nipple. Pump wiper ball and dart down to clear drill pipe of any residual cement. Circulate 1 annular volume. Treat ail mud retums for presence of cement products. Dump returns during and after pumping ball. Finish pumping. Flush trip tank, stack, cement line, bleeders and all mud lines with retarded water. Rig up false rotary and pull out of hole with 5" drill pipe from 2330' to • surface. EPOCH PERSONNEL ON BOARD 1 DAILY COST ML: 375 RW: 455 REPORT BY Craig Silva Marathon Oil Company O Kenai Gas Field DAILY WELLSITE REPORT EPOCH KBU 42 -6X REPORT FOR John Nicholson / Dan Byrd DATE Apr 20, 2009 DEPTH 2520 PRESENT OPERATION Testing BOPE TIME 24:00 YESTERDAY 2520 24 HOUR FOOTAGE 0 CASING INFORMATION 13 3/8" @ 2508' DEPTH INCLINATION AZIMUTH VERTICAL DEPTH SURVEY DATA BIT INFORMATION INTERVAL CONDITION REASON NO. SIZE TYPE S/N JETS IN OUT FOOTAGE HOURS T /B /C PULLED DRILLING PARAMETERS HIGH LOW AVERAGE CURRENT AVG RATE OF PENETRATION @ @ FT /HR SURFACE TORQUE @ @ AMPS WEIGHT ON BIT @ @ KLBS ROTARY RPM @ @ RPM PUMP PRESSURE @ @ PSI DRILLING MUD REPORT DEPTH 2520 / 2173 TVD MW 9.2 VIS 41 PV 13 YP 3 FL 9.5 Gels 2/2/ CL- 500 FC 1 SOL 4.0 SD 0.15 OIL 0/96 MBL 15.0 pH 8.5 Ca+ 40 CCI MWDSUMMARY INTERVAL TO TOOLS GAS SUMMARY (units) HIGH LOW AVERAGE • DITCH GAS @ @ TRIP GAS CUTTING GAS @ @ WIPER GAS CHROMATOGRAPHY (ppm) SURVEY METHANE (C -1) © © CONNECTION GAS HIGH ETHANE (C -2) @ © AVG PROPANE (C -3) @ © CURRENT BUTANE (C -4) @ @ CURRENT BACKGROUND /AVG PENTANE (C -5) © @ HYDROCARBON SHOWS INTERVAL LITHOLOGY /REMARKS GAS DESCRIPTI ON LITHOLOGY PRESENT LITHOLOGY Break and lay down stab -in assembly (5' pup, stab -in tool, centralizer). Lay down 4 singles with visible residual cement. Rig down false rotary. Flush overheads in pits. Flush, re -flush and drain 20" by 13 3/8" annulus, flowline and all mud lines. Flush #3 mud pump. Blow down all mud lines. Pull plate. Clear, clean and organize rig floor and cellar. Remove and lay down mousehole. Prep diverter for nipple down. Rinse Hanson tank. Begin pumping out and hauling off spud mud and cleaning pits. Nipple down and remove diverter line, knife valve and hydraulic control lines. Nipple down and rig down fill -up line, bleeder line and trip tank line. Disconnect turnbuckles to stack and secure to the side. Rig down trip tank actuator valve. Hotbolt diverter stack and prepare to raise (remove all but 2 bolts on stack). Rig up drill pipe elevators. Lift stack. Make rough cut on 13 3/8" casing and lay down (21.70') stub section. Nipple down and rig down flow line, flow line extension, kill line, 2" valve, accumulator lines, bell nipple and scaffolding. Finish cleaning the pits. Begin building 700 bbls (500bbIs in pits, 200bbIs in Vac trucks) of new 8.8ppg Flo -Pro mud as per DAILY Marathon program. Finish nippling down the last components of the diverter stack and then move out of the cellar and mount on stand. Remove ACTIVITY and load off 21 1/4" sliplock starter head. Make cut on 20" conductor. Make final cut (of 8.60' section) on 13 3/8" casing and then dress out stub. SUMMARY Install 13 3/8" sliplock connection by 13 5/8" 5M flanged multibowl wellhead. Energize seals and test wellhead to 1800psi for 10 minutes. Nipple down single gate. Clean up around sub -base catwalk and gray iron. Set pipe racks in place next to catwalk. Set spool and HCR on stack and spot near sub -base. Nipple up 13 5/8" 5M x36" spacer spool. Install flowline extension. Nipple up 13 5/8" 5M BOP stack. Nipple up kill and choke lines. Pick up and re- install mousehole. Nipple up and rig up all remaining BOP attachements and accessory equipment (fill -up line, bleeder line, trip tank line, flow line, 2" valve, accumulator lines, actuator, bell nipple, drip pan and scaffolding). Re- connect and secure turnbuckles to stack. Install and then shim the outboard disc brake pad on the bottom caliper. Begin loading and strapping 5" drill pipe on pipe racks. Prepare to test BOPE. Pull wear ring. Set test plug. Rig up testing equipment. Function check BOPE. Test annular to 250psi Low / 2500psi High for 5 minutes. Begin testing all other BOPE to 250psi Low / 3500psi High for 10 minutes (2 7/8" x 5 %" variable pipe rams, upper topdrive, check valve, annular, dart valve, floor valve, lower topdrive, outside kill, inside kill, HCR, manual choke, blind rams, CMVs 1 -12). EPOCH PERSONNEL ON BOARD 2 DAILY COST ML: 2425 RW: 455 • REPORT BY Craig Silva Marathon Oil Company 1110 Kenai Gas Field DAILY WELLSITE REPORT EPOCH KBU 42 -6X REPORT FOR John Nicholson / Dan Byrd DATE Apr 21, 2009 DEPTH 2608 PRESENT OPERATION Drilling ahead TIME 24:00 YESTERDAY 2520 24 HOUR FOOTAGE 88 CASING INFORMATION 13 3/8" @ 2508' DEPTH INCLINATION AZIMUTH VERTICAL DEPTH SURVEY DATA 2581 48.94 8.73 2212.71 BIT INFORMATION INTERVAL CONDITION REASON NO. SIZE TYPE S/N JETS IN OUT FOOTAGE HOURS T /B /C PULLED 3 12.25 HCC 506Z 7015569 6x13 2520 88 1.00 In Hole DRILLING PARAMETERS HIGH LOW AVERAGE CURRENT AVG RATE OF PENETRATION 160.5 @ 2522 29.1 @ 2524 97.9 126.6 FT /HR SURFACE TORQUE 8056 @ 2536 0 @ Sliding 4467.5 6140.6 AMPS WEIGHT ON BIT 27 © 2587 5 @ 2598 14.6 9.6 KLBS ROTARY RPM 53 @ 2565 0 © Sliding 49.2 50.2 RPM PUMP PRESSURE 1605 @ 2520 642 © 2556 795.1 863.72162 PSI DRILLING MUD REPORT DEPTH 2520 / 2173 TVD MW 8.8 VIS 54 PV 11 YP 15 FL 5.5 Gels 9/13/ CL- 22000 FC 1 SOL 1.5 SD 0 OIL 3/96 MBL 1.0 pH 9.4 Ca+ 160 CCI MWD SUMMARY INTERVAL TO Ill GAS S GAS SUMMARY (units) HIGH LOW AVERAGE DITCH GAS 10 @ 2605 1 @ 2572 5.7 TRIP GAS CUTTING GAS @ @ WIPER GAS CHROMATOGRAPHY (ppm) SURVEY METHANE (C -1) 2082 @ 2605 316 @ 2572 1141.1 CONNECTION GAS HIGH ETHANE (C -2) @ @ AVG PROPANE (C -3) @ @ CURRENT BUTANE (C -4) @ @ CURRENT BACKGROUND /AVG 5 / 8 PENTANE (C -5) @ @ HYDROCARBON SHOWS INTERVAL LITHOLOGY /REMARKS GAS DESCRIPTI ON LITHOLOGY PRESENT LITHOLOGY Finish testing BOPE to 250psi Low / 3500psi High for 10 minutes (2 7/8" x 5 1/2" variable pipe rams, upper topdrive, check valve, annular, dart valve, floor valve, lower topdrive, outside kill, inside kill, HCR, manual choke, blind rams, CMVs 1 -12). Perform accumulator drawdown test. Test all gas alarms. Rig down BOPE test equipment. Pull test plug. Install wear ring. Rig up to test 13 3/8" casing and then test to 1500psi for 30 minutes. Rig down test equipment. Blow down Topdrive, choke and mud lines. Install drip pan. Adjust stack chains and mousehole. Service rig, Topdrive and equipment. Grease crown. Finish building 700 bbls (500bbIs in pits, 200bbIs in Vac trucks) of new 8.8ppg Flo -Pro mud as per Marathon program. Install elevators. Pick up and install pipe handling tools on rig floor. Prepare to pick up pre - tallyied joints of 5" drill pipe arrayed on the DAILY pipe racks. Pick up, drift, make up and run in hole (80 joints, 40 stands) of 5" drill pipe, and then pull out racking back and strapping in derrick. 1 ACTIVITY Clean rig floor. Lay out lower directional assembly on catwalk. Pick up, make up and run in hole new directional assembly (bit, motor, NM stabilizer, SUMMARY pony NMDC, NM crossover, MWD, UPA sub, NM filter sub, NM crossover, 2 NMCSDPs, crossover) to 141'. Orient and scribe MWD tools and dress threads on crossovers while running in. Continue running in hole with 11 stands of 5" HWDP and jars to 800'. Break circulation and surface test MWD. Continue running in hole with pre - tallyied singles of 5" drill pipe off the pipe racks from 800' to 2126'. Install corrosion ring in next stand of 5" drill pipe to be added to string. Wash down from 2124' and tag float collar at 2466'. Note no cement above float collar. Drill out and clean out float equipment and remaining shoe tract (cement, shoe at 2508', 12' of rathole) to 2520'. Drill 20' of new hole from 2520' to 2540'. Circulate bottoms up and continue circulating hole clean. Displace hole with 30 bbls water, 35 bbls Hi -Vis sweep and 362 bbls of new 8.8ppg Flo -Pro mud. Cease pumping. Perform Formation Integrity Test to 13.Oppg EMW. Drill ahead from 2540' to 2608'. EPOCH PERSONNEL ON BOARD 2 DAILY COST ML: 2425 RW: 555 REPORT BY Craig Silva IP Marathon Oil Company • Kenai Gas Field DAILY WELLSITE REPORT EPOCH KBU 42 -6X REPORT FOR John Nicholson DATE Apr 22, 2009 DEPTH 4335 PRESENT OPERATION Drilling ahead TIME 24:00 YESTERDAY 2608 24 HOUR FOOTAGE 1727 CASING INFORMATION 13 3/8" © 2508' DEPTH INCLINATION AZIMUTH VERTICAL DEPTH 2644 49.00 10.63 2254.07 3087 53.38 17.06 2521.38 SURVEY DATA 3529 56.05 16.34 2775.31 3968 54.27 15.86 3025.43 4350 53.58 13.29 3250.02 BIT INFORMATION INTERVAL CONDITION REASON NO. SIZE TYPE S/N JETS IN OUT FOOTAGE HOURS T /B /C PULLED 3 12.25 HCC 506Z 7015569 6x13 2520 1815 15.27 In Hole DRILLING PARAMETERS HIGH LOW AVERAGE CURRENT AVG RATE OF PENETRATION 476.5 @ 2955 19.2 © 3856 127.2 114.3 FT /HR SURFACE TORQUE 12568 @ 3896 0 © Sliding 6207.6 8645.6 AMPS WEIGHT ON BIT 40 @ 2954 0 © 3328 10.6 9.3 KLBS ROTARY RPM 78 @ 3052 0 © Sliding 70.4 Sliding RPM PUMP PRESSURE 1491 @ 4196 736 @ 2638 1150.8 1270.2 PSI DRILLING MUD REPORT DEPTH 4253 / 3193 TVD MW 9.3 VIS 58 PV 14 YP 23 FL 6.8 Gels 11/13/ CL- 21000 FC 1 SOL 6.0 SD 0.5 OIL 3/91 MBL 8.75 pH 9.2 Ca+ 300 CCI • MWD SUMMARY INTERVAL TO TOOLS GAS SUMMARY (units) HIGH LOW AVERAGE DITCH GAS 28 @ 4172.00000 2 @ 2641.00000 13.9 TRIP GAS CUTTING GAS @ @ WIPER GAS CHROMATOGRAPHY (ppm) SURVEY METHANE (C -1) 5638 © 4172.00000 541 @ 2641.00000 2774.2 CONNECTION GAS HIGH ETHANE (C -2) @ @ AVG PROPANE (C -3) @ @ CURRENT BUTANE (C -4) @ @ CURRENT BACKGROUND /AVG 6 / 18 PENTANE (C -5) @ @ HYDROCARBON SHOWS INTERVAL LITHOLOGY /REMARKS GAS DESCRIPTI ON LITHOLOGY PRESENT LITHOLOGY DAILY ACTIVITY SUMMARY Drill (rotating and sliding) from 2608' to 4335'. EPOCH PERSONNEL ON BOARD 2 DAILY COST ML: 2425 RW: 555 REPORT BY Craig Silva 0 Marathon a Company Kenai G EPOCH Kenai Gas Field DAILY WELLSITE REPORT El KBU 42 -6X REPORT FOR John Nicholson / Dan Byrd DATE Apr 23, 2009 DEPTH 5160 PRESENT OPERATION Running back in hole to drill ahead after stabilizing mud losses TIME 24:00 YESTERDAY 4335 24 HOUR FOOTAGE 825 CASING INFORMATION 13 3/8" © 2508' DEPTH INCLINATION AZIMUTH VERTICAL DEPTH 4412 54.43 13.02 3286.46 4603 55.52 14.08 3394.70 SURVEY DATA 4793 55.10 14.21 3502.75 4983 54.45 13.86 3612.32 5174 53.83 14.35 3724.33 BIT INFORMATION INTERVAL CONDITION REASON NO. SIZE TYPE S/N JETS IN OUT FOOTAGE HOURS T /B /C PULLED 3 12.25 HCC 506Z 7015569 6x13 2520 2640 22.47 In Hole DRILLING PARAMETERS HIGH LOW AVERAGE CURRENT AVG RATE OF PENETRATION 158.3 © 4465 20.6 © 4717 129.8 127.9 FT /HR SURFACE TORQUE 12626 © 5032 0 © Sliding 9229.4 11681.3 AMPS WEIGHT ON BIT 42 © 4410 1 © 4656 13.9 14.1 KLBS ROTARY RPM 88 @ 4444 0 @ Sliding 69.6 69.0 RPM PUMP PRESSURE 1610 @ 4467 933 @ 5159 1352.7 990.6 PSI DRILLING MUD REPORT DEPTH 4842 / 3531 MW 9.4 VIS 66 PV 16 YP 31 FL 6.6 Gels 12/16/18 CL- 21000 FC 1 SOL 7.0 SD 0.1 OIL 3/90 MBL 11.0 pH 9.3 Ca+ 520 CCI • MWD SUMMARY INTERVAL TO TOOLS GAS SUMMARY (units) HIGH LOW AVERAGE DITCH GAS 144 @ 4909 0 © Lost circulation 38.3 TRIP GAS CUTTING GAS © @ WIPER GAS 13 CHROMATOGRAPHY (ppm) SURVEY METHANE (C -1) 28889 © 4909 0 @ Lost circulation 7597.0 CONNECTION GAS HIGH ETHANE (C -2) 6 © 4908 0 @ 0.3 AVG PROPANE (C -3) @ @ CURRENT BUTANE (C -4) @ @ CURRENT BACKGROUND /AVG 5 / 28 PENTANE (C -5) @ © HYDROCARBON SHOWS INTERVAL LITHOLOGY /REMARKS GAS DESCRIPTION LITHOLOGY PRESENT LITHOLOGY Drill from 4335' to 4399'. Circulate bottoms up and continue to circulate hole clean. Pull out of hole on wiper trip to 2440' (inside 13 3/8" shoe). Work through and clean up tight spots on way out of hole at 3600' and 3495'. Service rig, carrier blocks and crown. Run back in hole to 4335'. Work through tight spots at 3000' and 4018' on way in. Wash down from 4335' to 4399'. Drill (rotating and sliding) from 4399' to 5097'. Begin losing DAILY mud at increased rate at 5068'. Slow pump rate down and continue drilling from 5097' to 5160'. Significant losses continue. Pump and spot LCM ACTIVITY pill on bottom. Pull out of hole from 5160' to 4335'. Run back in hole from 4335' to 4750'. Pipe stuck. Work pipe free. Continue running in hole SUMMARY pumping down from 4750' to 5160'. Well still taking fluid while pumping in and while circulating near bottom. Spot a second LCM pill near bottom. Pull out of hole to 4462' on second wiper trip. Run back in hole from 4462' and encounter tight spot at 4875'. Kelly up, break circulation and establish returns. Wash through tight spot and continue washing to 4906'. Cease circulating. Continue running back in hole from 4906' and encounter tight spot at 5055'. Kelly up, break circulation and establish returns. Begin washing down to tight spot with full returns. (Note estimated 565 bbls of total losses since 5068'). EPOCH PERSONNEL ON BOARD 2 DAILY COST ML: 2425 RW: 555 REPORT BY Craig Silva • 0 Marathon a Company Kenai G EPOCH Kenai Gas Field DAILY WELLSITE REPORT Ell KBU 42 -6X REPORT FOR John Nicholson / Dan Byrd DATE Apr 24, 2009 DEPTH 5427 PRESENT OPERATION Drilling ahead TIME 24:00 YESTERDAY 5160 24 HOUR FOOTAGE 267 CASING INFORMATION 13 3/8" © 2508' DEPTH INCLINATION AZIMUTH VERTICAL DEPTH 5237 53.53 13.81 3761.64 SURVEY DATA 5300 52.86 14.89 3799.39 5364 51.48 15.34 3838.64 5427 49.28 16.62 3878.81 BIT INFORMATION INTERVAL CONDITION REASON NO. SIZE TYPE S/N JETS IN OUT FOOTAGE HOURS T /B /C PULLED 3 12.25 HCC 506Z 7015569 6x13 2520 2907 30.01 In Hole DRILLING PARAMETERS HIGH LOW AVERAGE CURRENT AVG RATE OF PENETRATION 127.9 @ 5160 3.8 @ 5356 61.9 23.9 FT /HR SURFACE TORQUE 14768 @ 5365 0 @ Sliding 7767.7 Sliding AMPS WEIGHT ON BIT 30.8 @ 5291 1.9 @ 5366 13.5 4.0 KLBS ROTARY RPM 82 @ 5362 0 @ Sliding 33.5 Sliding RPM PUMP PRESSURE 1710 @ 5368 857 @ 5351 996.9 974.3 PSI DRILLING MUD REPORT DEPTH 5426 / 3878 TVD MW 9.3 VIS 63 PV 14 YP 19 FL 5.8 Gels 8/12/ CL- 18500 FC 1 SOL 7.0 SD 2.0 OIL 3/90 MBL 6.25 pH 9.2 Ca+ 360 CCI MWD SUMMARY INTERVAL TO TOOLS GAS SUMMARY (units) HIGH LOW AVERAGE DITCH GAS 41 @ 5181.00000 1 @ 5391.00000 17.9 TRIP GAS CUTTING GAS @ @ WIPER GAS 27 CHROMATOGRAPHY (ppm) SURVEY METHANE (C -1) 8378 @ 5181.00000 223 @ 5391.00000 3449.5 CONNECTION GAS HIGH ETHANE (C -2) @ @ AVG PROPANE (C -3) © @ CURRENT BUTANE (C -4) © © CURRENT BACKGROUND /AVG 5 / 10 PENTANE (C -5) @ @ HYDROCARBON SHOWS INTERVAL LITHOLOGY /REMARKS GAS DESCRIPTION LITHOLOGY PRESENT LITHOLOGY Wash down through tight spot at 5055' continue washing down to 5160' with full returns. Drill ahead without losses from 5160'. Drill (rotating) from 5160' to 5287'. Drill (sliding) from 5287' and observe significant rate of mud loss after 5313'. Continue slide drilling to 5320' and drilling ahead rotating to 5341' with mud losses of 112 bbls in 66 minutes. Pump and spot LCM pill. Pull out of hole to 2440' (inside 13 3/8" shoe) to rebuild mud DAILY volume. Work through several tight spots on way out, with net mud loss of 12 bbls. Slip and cut drilling line. Run back in hole 2 stands to 2563'. ACTIVITY Break circulation, circulate out and continue to circulate and condition mud. Cease circulating. Continue running in hole from 2563' to 5287', SUMMARY working through several tight spots on way in, and needing to kelly up and circulate stands down at 3701' and 4528'. Wash down from 5287' to 5341'. Record 27 units of wiper gas. Drill (sliding and rotating) from 5341' to 5413'. Start observing significant mud losses at 5380'. Lose 238 bbls in 3 hours. Pump and spot 40 bbl LCM pill. Pull out of hole from 5413' to 4779'. Work pipe (without circulating) to give pill time to soak. Run back in hole from 4779' to 5350'. Wash down from 5350' to 5413'. Drill (sliding and rotating) from 5413' to 5427'. EPOCH PERSONNEL ON BOARD 2 DAILY COST ML: 2425 RW: 555 REPORT BY Craig Silva • 0 Marathon a EPOCH Company Kenai G Kenai Gas Field DAILY WELLSITE REPORT 'I KBU 42 -6X REPORT FOR John Nicholson / Dan Byrd DATE Apr 25, 2009 DEPTH 6258 PRESENT OPERATION Circulating out prior to wiper trip TIME 24:00 YESTERDAY 5427 24 HOUR FOOTAGE 831 CASING INFORMATION 13 3/8" @ 2508' DEPTH INCLINATION AZIMUTH VERTICAL DEPTH 5491 46.41 17.57 3921.76 5681 39.03 18.97 4062.02 SURVEY DATA 5870 33.08 18.51 4214.90 6061 28.05 15.05 4379.63 6187 24.53 14.71 4492.48 BIT INFORMATION INTERVAL CONDITION REASON NO. SIZE TYPE S/N JETS IN OUT FOOTAGE HOURS T /B /C PULLED 3 12.25 HCC 506Z 7015569 6x13 2520 3738 46.29 In Hole DRILLING PARAMETERS HIGH LOW AVERAGE CURRENT AVG RATE OF PENETRATION 119.6 @ 5578 6.1 © 6053 64.8 32.3 FT /HR SURFACE TORQUE 13882 @ 6214 0 @ Sliding 5848.7 800.5 AMPS WEIGHT ON BIT 47.8 @ 6176 1.0 @ 5530 9.9 5.6 KLBS ROTARY RPM 77 @ 5964 0 © Sliding 69.0 Sliding RPM PUMP PRESSURE 1310 @ 6239 905 @ 5504 1085.1 1138.5 PSI DRILLING MUD REPORT DEPTH 6189 / 4494 TVD MW 9.6 VIS 66 PV 16 YP 25 FL 5.4 Gels 10/15/17 CL- 20000 FC 1 SOL 10.0 SD 2.0 OIL 3/87 MBL 8.9 pH 8.9 Ca+ 400 CCI • MWD SUMMARY INTERVAL TO TOOLS GAS SUMMARY (units) HIGH LOW AVERAGE DITCH GAS 48 @ 6147 6 @ 6112 22.0 TRIP GAS CUTTING GAS @ @ WIPER GAS CHROMATOGRAPHY (ppm) SURVEY METHANE (C -1) 9647 @ 6147 1325 @ 6112 4397.0 CONNECTION GAS HIGH ETHANE (C -2) @ @ AVG PROPANE (C -3) @ @ CURRENT BUTANE (C -4) @ @ CURRENT BACKGROUND /AVG 7 / 17 PENTANE (C -5) @ @ HYDROCARBON SHOWS INTERVAL LITHOLOGY /REMARKS GAS DESCRIPTION LITHOLOGY PRESENT LITHOLOGY DAILY ACTIVITY SUMMARY Drill (sliding and rotating) from 5427' to 6258'. EPOCH PERSONNEL ON BOARD 2 DAILY COST ML: 2425 RW: 555 REPORT BY Craig Silva • Marathon Oil Company • Kenai Gas Field DAILY WELLSITE REPORT EPOCH KBU 42 -6X REPORT FOR John Nicholson / Mitch Burns DATE Apr 26, 2009 DEPTH 6870 PRESENT OPERATION Drilling TIME 24:00 YESTERDAY 6258 24 HOUR FOOTAGE 612 CASING INFORMATION 13 3/8" @ 2508' DEPTH INCLINATION AZIMUTH VERTICAL DEPTH 6249 23.43 14.59 4549.13 6439 17.27 11.81 4726.85 SURVEY DATA 6565 13.23 12.82 4848.35 6756 7.30 10.47 5036.13 6883 3.58 27.17 5162.53 BIT INFORMATION INTERVAL CONDITION REASON NO. SIZE TYPE S/N JETS IN OUT FOOTAGE HOURS T /B /C PULLED 3 12.25 HCC 506Z 7015569 6x13 2520 4350 58.17 In Hole DRILLING PARAMETERS HIGH LOW AVERAGE CURRENT AVG RATE OF PENETRATION 186.4 @ 6620 7.1 © 6680 67.8 25.9 FT /HR SURFACE TORQUE 16380 @ 6738 0 © Sliding 6953.1 Sliding AMPS WEIGHT ON BIT 37.9 @ 6773 0.8 @ 6295 16.1 6.0 KLBS ROTARY RPM 78 @ 6584 0 @ Sliding 71.3 Sliding RPM PUMP PRESSURE 1850 © 6734 1138 @ 6258 1530.1 1463.71008 PSI DRILLING MUD REPORT DEPTH 6821 / 5101 MW 9.6 VIS 85 PV 20 YP 43 FL 6.4 Gels 19/27/ CL- 19000 FC 2 SOL 10.0 SD 0.2 OIL 4/86 MBL 13.75 pH 9.7 Ca+ 200 CCI • MWD SUMMARY INTERVAL TO TOOLS GAS SUMMARY (units) HIGH LOW AVERAGE DITCH GAS 97 © 6599 3 @ 6300 30.0 TRIP GAS CUTTING GAS © @ WIPER GAS 9 CHROMATOGRAPHY (ppm) SURVEY METHANE (C -1) 19218 @ 6599 770 © 6300 5981.7 CONNECTION GAS HIGH ETHANE (C -2) @ © AVG PROPANE (C -3) @ @ CURRENT BUTANE (C -4) @ @ CURRENT BACKGROUND /AVG 10 / 22 PENTANE (C -5) @ @ HYDROCARBON SHOWS INTERVAL LITHOLOGY /REMARKS GAS DESCRIPTION LITHOLOGY PRESENT LITHOLOGY DAILY Circulate bottoms up. Work on Topdrive rail while circulating. Pump and backream out of hole on wiper trip from 6258' to 5300'. Run back in ACTIVITY hole from 5300' to 6173'. Wash down from 6173' to 6236'. Start pumping around 30 bbl weighted Hi -Vis sweep to clean hole. Ream stand 2 l times at 6236' while cleaning hole and circulating around sweep. Continue washing down from 6236' to 6258'. Drill (sliding and rotating) from SUMMARY 6258' to 6870'. EPOCH PERSONNEL ON BOARD 2 DAILY COST ML: 2425 RW: 555 REPORT BY Craig Silva III Marathon Oil Company • Kenai Gas Field DAILY WELLSITE REPORT EPOCH KBU 42 -6X REPORT FOR John Nicholson / Dan Byrd DATE Apr 27, 2009 DEPTH 7105 PRESENT OPERATION Pulling out of hole after wiper trip at intermediate casing point TIME 24:00 YESTERDAY 6870 24 HOUR FOOTAGE 235 CASING INFORMATION 13 3/8" @ 2508' DEPTH INCLINATION AZIMUTH VERTICAL DEPTH 6944 1.83 39.26 5223.46 SURVEY DATA 7008 0.89 30.99 5287.45 7045 0.92 44.62 5324.44 7105 (Projection) 0.92 44.62 5384.43 BIT INFORMATION INTERVAL CONDITION REASON NO. SIZE TYPE S/N JETS IN OUT FOOTAGE HOURS T /B /C PULLED 3 12.25 HCC 506Z 7015569 6x13 2520 7105 4585 62.81 In Hole Int Casing Pt DRILLING PARAMETERS HIGH LOW AVERAGE CURRENT AVG RATE OF PENETRATION 101.1 @ 6931 9.4 @ 6871 61.7 76.7 FT /HR SURFACE TORQUE 16348 @ 7001 0 @ Sliding 10196.3 13040.6 AMPS WEIGHT ON BIT 20.3 @ 6996 1.7 @ 6900 9.0 12.0 KLBS ROTARY RPM 72 @ 7105 0 @ Sliding 69.8 70.0 RPM PUMP PRESSURE 1762 @ 6989 1431 @ 6934 1604.9 1640.9 PSI DRILLING MUD REPORT DEPTH 7105 / 5384 TVD MW 9.6 VIS 113 PV 18 YP 43 FL 6.8 Gels 19/26/29 CL- 18000 FC 2 SOL 10.0 SD 0.2 OIL 5/86 MBL 12.5 pH 9.7 Ca+ 200 CCI MWD SUMMARY • INTERVAL TO TOOLS GAS SUMMARY (units) HIGH LOW AVERAGE DITCH GAS 44 @ 7087 9 @ 6984 25.0 TRIP GAS CUTTING GAS @ @ WIPER GAS 43 CHROMATOGRAPHY (ppm) SURVEY METHANE (C -1) 8986 @ 7087 1913 @ 6984 5001.4 CONNECTION GAS HIGH ' ETHANE (C -2) @ @ AVG PROPANE (C -3) @ @ CURRENT BUTANE (C -4) @ @ CURRENT BACKGROUND /AVG N/A PENTANE (C -5) @ @ HYDROCARBON SHOWS INTERVAL LITHOLOGY /REMARKS GAS DESCRIPTI ON LITHOLOGY PRESENT LITHOLOGY Drill (sliding and rotating) from 6870' to 6983'. Circulate bottoms up and continue circulating until the Marathon geologist finishes correlating DAILY stratigraphic depths. Drill (rotating) from 6983' to 7105' (intermediate casing point). Circulate bottoms up and continue to circulate hole clean. Pull ACTIVITY out of hole on wiper trip from 7105' to 2437' (inside of 13 3/8" shoe). Level derrick. Service carrier, crown, blocks and Topdrive. Run back in hole SUMMARY from 2437' to 7057'. Break circulation and wash down from 7057' to bottom at 7105' (with no fill). Begin pumping around 30 bbl weighted Hi -Vis sweep. Circulate bottoms up and record 43 units of wiper gas. Circulate sweep around and continue to circulate, clean and condition hole (2 1/2 bottoms up total). Pull out of hole from 7105' (to 6425'). 1 EPOCH PERSONNEL ON BOARD 2 DAILY COST ML: 2425 RW: 555 REPORT BY Craig Silva III Marathon Oil Company • Kenai Gas Field DAILY WELLSITE REPORT EPOCH KBU 42 -6X REPORT FOR Rowland Lawson / Dan Byrd DATE Apr 28, 2009 DEPTH 7105 PRESENT OPERATION Running in hole with 9 5/8" casing TIME 24:00 YESTERDAY 7105 24 HOUR FOOTAGE 0 CASING INFORMATION 13 3/8" @ 2508' DEPTH INCLINATION AZIMUTH VERTICAL DEPTH SURVEY DATA BIT INFORMATION INTERVAL CONDITION REASON NO. SIZE TYPE S/N JETS IN OUT FOOTAGE HOURS T /B /C PULLED 3 12.25 HCC HCM506Z 7015569 6x13 2520 7105 4585 62.81 0- 2- WT- G- X- 1 -BT -TD Int. Casing Pt. DRILLING PARAMETERS HIGH LOW AVERAGE CURRENT AVG RATE OF PENETRATION @ @ FT /HR SURFACE TORQUE @ @ AMPS WEIGHT ON BIT @ @ KLBS ROTARY RPM @ @ RPM PUMP PRESSURE @ @ PSI DRILLING MUD REPORT DEPTH 7105 / 5384 TVD MW 9.5 VIS 60 PV 16 YP 19 FL 7.2 Gels 12/15/17 CL- 14000 FC 1 SOL 8.0 SD Tr OIL 4/88 MBL 12.0 pH 9.4 Ca+ 160 CCI MWD SUMMARY INTERVAL TO TOOLS III GAS SUMMARY (units) HIGH LOW AVERAGE DITCH GAS 1 @ Circ at shoe 0 @ Circ at shoe 1 Circ at shoe TRIP GAS CUTTING GAS @ @ WIPER GAS CHROMATOGRAPHY (ppm) SURVEY METHANE (C -1) @ @ CONNECTION GAS HIGH ETHANE (C -2) @ @ AVG PROPANE (C -3) @ @ CURRENT BUTANE (C -4) @ @ CURRENT BACKGROUND /AVG N/A PENTANE (C -5) @ @ HYDROCARBON SHOWS INTERVAL LITHOLOGY /REMARKS GAS DESCRIPTION LITHOLOGY PRESENT LITHOLOGY I Continue pulling out of hole (SLM) from 6425' to 2810' (just inside 13 3/8" shoe). Briefly circulate at shoe (400gpm, 67spm, 700psi). Record 1 unit maximum gas. Continue pulling out of hole (SLM, with no correction) from 2810' top of 5" HWDP at 800'. Note that hole was slick all the way out. Pull out of hole standing back 5" HWDP and jars to 143'. Pull, break and lay down directional assembly (crossover, 2 NMCSDPs, MN crossover, NM filter sub, UPA sub, MWD, NM crossover, pony NMDC, NM stabilizer, motor, bit). Inspect and grade bit. Blow down mud lines. Clear and clean rig floor. Start procedures for running 9 5/8" casing. Pull wear bushing. Close blind rams. Change out top set variable pipe rams to 9 5/8" casing rams. Rig up and function stabbing board. Move torque tube back in derrick for clearance. Run in test plug, rig up test equipment and test 9 5/8" rams to 250psi Low / 3500psi High for 10 minutes. Rig down test equipment and pull test plug. Using single joint elevators and with Vetco -Gray witnessing, make dummy run and drift BOPs with 9 5/8" landing joint and hanger. Mark elevation on landing joint. Pull and lay down landing joint. DAILY Move breakout tongs to driller's side and install correct tong head. Remove drill pipe elevators and short bails. Install long bails and attach pick up ACTIVITY line. Pick up 350 -ton casing elevators. Rig up Weatherford casing (power) tongs and tall snub post. Remove rotary bushings. Rig up casing spider SUMMARY slips. Test run stabbing board clearance. Make up and install Lafleur fill -up tool. Make up EZ -turn valve onto casing swage (to act as a safety valve), function test, record in IADC and leave in open position. Pick up centralizers and lock rings and stage on rig floor. Tie one (red) tugger line back in derrick for picking up pipe, and the second (blue) tugger line back for hanging casing tongs. Hold pre -job meeting with Weatherford and all hands on procedures and safety for running intermediate casing string. Inspect rig -up. Run in hole with 9 5/8" shoe track as per Marathon program. Clean and Bakerlok casing threads on successive shoe track joints during make up. Pick up, make up and run in hole float shoe, 2 spacer joints (with 2 centralizers each and stop collars), float collar and1 additional joint to 124'. Circulate casing volume through shoe track and check float equipment. Continue running 9 5/8" casing in hole as per Marathon. Attach 1 centralizer per joint as per tally. Fill every joint on way in. Run casing from 124' to 2440' (just inside 13 3/8" shoe). Break circulation, fill pipe and briefly circulate. Record 1 unit maximum gas. Continue running 9 5/8" casing in hole from 2440' to 3786'. Hold second meeting with Weatherford and all new hands at crew change on procedures and safety for running intermediate casing string. Continue running 9 5/8" casing in hole from 3786' to 3911'. 411 EPOCH PERSONNEL ON BOARD 2 DAILY COST ML: 2425 RW: 555 REPORT BY Craig Silva Marathon Oil Company • Kenai Gas Field DAILY WELLSITE REPORT EPOCH KBU 42 -6X REPORT FOR Rowland Lawson / Mitch Burns DATE Apr 29, 2009 DEPTH 7105 PRESENT OPERATION Running in and testing 9 5/8" packoff after cement in place TIME 24:00 YESTERDAY 7105 24 HOUR FOOTAGE 0 CASING INFORMATION 9 5/8" @ 7091' DEPTH INCLINATION AZIMUTH VERTICAL DEPTH SURVEY DATA BIT INFORMATION INTERVAL CONDITION REASON NO. SIZE TYPE S/N JETS IN OUT FOOTAGE HOURS T /B /C PULLED DRILLING PARAMETERS HIGH LOW AVERAGE CURRENT AVG RATE OF PENETRATION @ @ FT /HR SURFACE TORQUE @ @ AMPS WEIGHT ON BIT @ @ KLBS ROTARY RPM @ @ RPM PUMP PRESSURE @ @ PSI DRILLING MUD REPORT DEPTH MW VIS PV YP FL Gels CL- FC SOL SD OIL MBL pH Ca+ CCI MWD SUMMARY INTERVAL TO TOOLS GAS SUMMARY (units) HIGH LOW AVERAGE DITCH GAS 1 @ Brief circ while running in casing 0 Brief circ running in casing N/A TRIP GAS N/A CUTTING GAS @ @ WIPER GAS CHROMATOGRAPHY (ppm) SURVEY METHANE (C -1) @ @ CONNECTION GAS HIGH ETHANE (C -2) @ @ AVG PROPANE (C -3) @ @ CURRENT BUTANE (C -4) @ @ CURRENT BACKGROUND /AVG N/A PENTANE (C -5) @ HYDROCARBON SHOWS INTERVAL LITHOLOGY /REMARKS GAS DESCRIPTION LITHOLOGY PRESENT LITHOLOGY Continue running 9 5/8" casing in hole from 3911' to 4896'. Reset riser. Continue running 9 5/8" casing in hole from 4896' to 7059'. (Note 40 bbls of mud loss while running in last 22 stands of casing from 6198' to 7059'). Break circulation and prepare to pick up landing joint.. No retums while circulating. Monitor lost circulation. Lose 112 bbls of mud in 29 minutes and 2291 strokes. Shut down pumps and monitor for mud losses. Well static. Pick up landing joint and wash down from 7059' to landing depth. Lose 12 bbls of mud in 10 minutes while washing down (260 total strokes at 26spm). Land hanger on load shoulder in multi -bowl wellhead at 7091.00'. Drain stack and verify landing. Cease pumping. Make up and rig up circulating swage and attempt to circulate. No returns during attempt. Hold meeting on lost circulation problems. Pull and lay down casing spider slips and Weatherford casing power tongs. Load off excess centralizers and lock rings. Rig down and lay down remaining casing running tools. Readjust tugger lines. Rig down and lay down casing elevators, long bails and pick up sling line. Rig down and lay down Lafleur fill -up tool. Blow down Topdrive. Build mud volume (to 570 total bbls). Install cementing head with top and bottom plugs pre - installed on rig floor. Rig up cementing DAILY lines. Hold pre -job meeting with BJ and all hands on procedures and safety for cement job. Blow air through cement lines and valves to clear. ACTIVITY Switch to BJ pumping unit. Pump 2.3 bbls of water to fill lines and pressure test to 3278psi. Bleed off pressure and line out to pump spacer. Mix and SUMMARY pump 42.0 bbls of mud mixed with 80 Ibs of Sealbond Plus, water and LCM. Finish pumping spacer and shut down. Switch over to rig pumps. Rig pumps 40 bbl LCM pill. Pump and spot both pills out 9 5/8" casing. Continue pumping with mud to displace pills. Pump 13000 strokes with no retums. Fill pits with water to displace cement. Pump 30.6 bbls of 10ppg Sealbond Plus sweep. Open up bottom valve and drop first (bottom) plug. Mix and pump 220.0 bbls of 10.5ppg cement slurry (366 sacks of Class G cement plus accelerator chemicals mixed with 110.45 bbls water to batch -up at 12.675 gal /sk and yield of 3.321 cu- fUsk). Stop pumping. Open top valve and close middle and bottom valve on circulating head. Drop second (top) plug. Pump 5.8 bbls of water to kick out the top plug. Switch over to rig pumps. Displace cement with 528.72bbls (11221 strokes) of mud and water (and 534.5 bbls total displacement). Bump plug with 1003psi over circulating pressure (and 1522psi total pressure). Bleed off. Check floats. Cement in place. Continuous losses of mud during displacement. Begin wait on cement. Note 1604 bbls of total fluids lost since initial loss running in casing. Flush down, blow down and rig down BJ cementing head and cement lines. Blow down Topdrive, mud lines and mud pumps. Back out and lay down casing hanger landing joint. Rig down and fold up stabbing board. Clear and clean rig floor. Make up 13 3/8" by 9 5/8" pack -off and run in on 1 joint of HWDP. • EPOCH PERSONNEL ON BOARD 2 DAILY COST ML: 2425 RW: 555 REPORT BY Craig Silva
