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Home My WebLink About209-0161. 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: CTCO/Fishing/N2_ 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 8,055 feet N/A feet true vertical 7,919 feet N/A feet Effective Depth measured 7,975 feet N/A feet true vertical 7,838 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) Excape Tubing 3-1/2" 9.3# / L-80 8,012' 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 323-454 Sr Pet Eng: Sr Pet Geo: Sr Res Eng: WINJ WAG 14 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 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 13 Size 157' 0 7520 0 540 522 measured TVD 9-5/8" 3-1/2" STATE OF ALASKA ALASKA OIL AND GAS CONSERVATION COMMISSION REPORT OF SUNDRY WELL OPERATIONS 209-016 50-133-20585-00-00 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: ADL0022330 Kenai Gas Field - Beluga/Upper Tyonek Gas Kenai Beluga Unit (KBU) 11-17X Plugs Junk measured Length Production Liner 5,565' 7,991' Casing Structural 5,450' 7,876' 5,586' 8,012' 157'Conductor Surface Intermediate 20" 13-3/8" 157' 1,555' 3,090psi 10,540psi 3,060psi 3,450psi 5,750psi 10,160psi 1,576' 1,575' Burst Collapse 1,500psi 1,950psi PL G Form 10-404 Revised 10/2022 Due Within 30 days of Operations Submit in PDF format to aogcc.permitting@alaska.gov Digitally signed by Noel Nocas (4361) DN: cn=Noel Nocas (4361) Date: 2023.12.21 16:44:47 - 09'00' Noel Nocas (4361) By Grace Christianson at 7:52 am, Dec 22, 2023 Page 1/5 Well Name: KEU KBU 11-17X Report Printed: 12/21/2023www.peloton.com Well Operations Summary Jobs Actual Start Date:9/23/2023 End Date: Report Number 2 Report Start Date 8/17/2023 Report End Date 8/18/2023 Operation PTW, JSA with SLB coil crew, Cruz Crane operator and Hilcorp production. MIRU SLB CTU 13 with 1.75: CTU. Mix 300 bbls of 6% KCL AOGCC Jim regg waived witness. Start BOPE test 250/3000 psi. BOPE Test completed. Finish rigging in SLB N2 equipment. Make up coil connector and pull test. Report Number 3 Report Start Date 8/18/2023 Report End Date 8/19/2023 Operation PTW, JSA with SLB coil, Cruz Crane op, and Hilcorp reps. Fire equipment. Pick injector head and stab lubricator. Make up slim BHA of 1.75". CC, DFCV, stinger, down jet nozzle. Stab on well. PT stack with 6% KCL 250/3000 psi. Open well. 120 psi whp gas cap. Bleed off to open top. RIH and fill well until returns at surface. Shut down fluid pump for dry tag. Dry tag at 5275' CTMD. Pick up clean. Establish pumping parameters. 1.7 bbls/min 2100 psi. Start FCO. slight weight loss while RIH cleaning out. wire/fish moving down hole. 5461' stacking weight and not washing off. Pick up clean. 4 attempts made to push fish. 7,000 lbs stacked on obstruction. Not washing off. Pump 10 bbl gel sweep/bottoms up. POOH to surface keeping hole full. Tagged up at surface. 230 bbls of 6% KCL pumped during cleanout. Close well. Rig back CTU. Move Cruz crane to make room for slickline. MIRU pollard slick line. PT lubricator 2500 psi. w/ 2.75'' L.I.B. to 5457'kb hit one time pooh w/ impression of wire on sides of L.I.B RIH w/ 2.62'' 2 prong wire grab baited w/ 2 1/2'' GR 51'' total lenth to5458'kb w/ tool latch wire 3 jar licks \nshears off pooh Lay down lubricator. Well secure. SDFN. Report Number 4 Report Start Date 8/19/2023 Report End Date 8/20/2023 Operation PTW, JSA with production. PU lubricator. Make up fishing tools. Stab on well pt stack 250/3500 psi. RIH w/ 2.62'' 2 prong wire grab baited w/ 2 1/2'' GR to 5461'kb p/u 300# over set down fell to 5475'kb \ndid not sit w/ tool up see wire cannot latch pooh RIH w/ same grab 2' stem w/ 2.8'' wire finder baited w/ 2 1/2'' GR 91'' total length to 5465'kb sit w/ tool \nlatch 1 jar lick to 800# comes free dragging 10# heavy pooh no wire RIH w/ same to 5466'kb sit w/ tool 2 jar licks shears off pooh RIH w/ 2 1/2'' GS to 5457'kb latch w/ tool 3 jar licks to 1200# comes free dragging heavy pooh \nw/ 2 pieces wire 4' total \nRIH w/ same baited w/ 2 1/2'' GR to 5472'kb w/ tool 4 jar licks to 900# shears off pooh RIH w/ 2 1/2'' GS to 5464'kb latch w/ tool 8 jar licks to 1700# GS shears pooh \nRIH w/ same to 5465'kb latch w/ tool jar lick for 1 hour @ 1800# shear off pooh OOH lay down lub. Check toolstring add 5' stem long stroke oil jars rig up 160 wire RIH w/ 2 1/2'' GS to 5480'kb 15' deep from 125 depth latch w/ tool 8 jar licks to 2500# GS shears pooh RIH w/ same pinned w/ steel to 5475'kb w/ tool would not latch pooh inspect tool Lay down lub. Secure well for night \nTurn in permit head to shop Report Number 5 Report Start Date 8/20/2023 Report End Date 8/21/2023 Operation Arrive KGF meet w/ prod. Jsa permit \nP/U lub. Stab on tree RIH w/ 2.5'' cent. w/ 2 1/2'' PRGS to 5461'kb latch w/ tool 5 jar licks to 2700# comes free pooh w/ 4' wire RIH w/ 2 prong wire grab 2.8'' wire finder baited w/ 2 1/2'' GR to 5491'kb sit w/ tool 5 jar licks to 1200# \nshears off pooh RIH w/ 2.5'' cent. w/ 2 1/2'' PRGS to 5484'kb latch w/ tool 1 jar lick @ 1800# comes free pooh w/ \n2 pieces wire 2' total RIH w/ 2.5'' cent. w/ 2 1/2'' PRGS to 5484'kb latch w/ tool 1 jar lick @ 1800# comes free pooh w/ \n2 pieces wire 2' total RIH w/ same to 5497'kb latch wire w/ tool 3 jar licks comes free pooh RIH w/ same to 5497'kb latch wire w/ tool 3 jar licks comes free pooh RIH w/ same to 5497'kb latch wire w/ tool 3 jar licks comes free pooh RIH w/ same to 5503'kb sit w/ tool latch wire 3 jar licks to 1200# shears off pooh RIH w/ 2.5'' cent. w/ 2 1/2'' PRGS to 5496'kb latch w/ tool friction bites only pooh no wire Lay down lub. Secure well for night \nTurn in permit head to shop Report Number 6 Report Start Date 8/21/2023 Report End Date 8/22/2023 Operation Arrive KGF meet w/ prod. Jsa permit \nCut wire tie rope socket check toolstring p/u lub. Stab on tree API: 50-133-20585-00-00 Field: Kenai Gas Field Sundry #: 323-454 State: Alaska Rig/Service:Permit to Drill (PTD) #:209-016 Page 2/5 Well Name: KEU KBU 11-17X Report Printed: 12/21/2023www.peloton.com Well Operations Summary Operation RIH w/ 2.62'' L.I.B. baited w/ 2 1/2'' GR to 5501'kb hit one time pooh w/ impression of rope socket RIH w/ 5' stem w/ 2 1/2'' RB to 5503'kb latch w/ tool 3 jar licks to 1200# shears off pooh RIH w/ 2 1/2'' JDC to 5503'kb latch w/ tool several jar licks to 3600# for 1hr. 30 min. shears off pooh \ncut wire re-tie rope socket rolled dogs on jdc - fish moved up hole 5' RIH w/ 2 1/2'' Heavy duty JDC to 5498'kb' latch w/ tool see lost tool string oil jars - jar for 1hr. Moved fish 6'' \nshear off cut wire re-tie rope socket RIH w/ series 150 over shot (2.62'' O.D.) 1.75'' grapple baited w/ 3 1/2'' GR to 5498'kb w/ tool beet down \nseveral times 3 additional jar licks to 1200# shears off pooh RIH w/ 3 1/2'' GS to 5497'kb latch w/ tool several jar licks to 3600# moved 4'' pooh \nRig down slickline secure well for night \nPark equip. on 14-6 pad turn in permit head to shop Remaining tools left in hole: 3 1/2'' g-bait sub Bowen over shot, 1.75'' rope socket, 10' stem knuckle joint, oil jars long stroke, Spang jars, and 2''x6' drive down bailer. Approximately 80' of .125 wire wrapped around bailer. (Lost in hole tool jars hitting indicating remaining wire is below jar assembly) Fish moved up Holt 5 1/2' to 5497' Report Number 7 Report Start Date 8/22/2023 Report End Date 8/23/2023 Operation PTW, JSA with crew. Pick injector head and 40' of lubricator. Make up YJOS fishing BHA. Pull test coil connector 25K and 35K. Make up DFCV, accelerator jar, Weight bar, BiDi Jars, TJ Hyd. Release disco, circ sub, x over an 3" GS spear. Stab on well PT stack 250/3500 psi. RIH. Perform weight check @ 5348' Free weight 16K. Tag and latch fish with GS spear @ 5496' CTMD. Pull up to 48K no movement. Start 10jar up licks. Pull to 38K. jars firing after 4 minutes. then pulling to 48K. No movement. Start Up and down jar licks for another 10. Start Jar licks only. Apply 3500 psi to wellhead pressure using 6% KCL. Perform 5 down jar licks with 20K down. No movement. Bleed down pressure. Looks like jars are loosing there strength. Attempt 5 more up jar licks. No movement of fish. Fish remains at 5496' CTMD POOH to surface. Trim 100' of coil. Make up coil connector and pull test. Rig back for the night. Plan forward tomorrow. Attempt Fishing with Hammer and CT. Report Number 8 Report Start Date 8/23/2023 Report End Date 8/24/2023 Operation PTW, JSA with crew. Well remains dead and full of 6% KCL. Pick injector stab 40' of lubricator. Coil connector already pull tested. MU 3" GS W/ Hard Driver fishing BHA. 2.13" CC, DFCV, TJ Hyd. Release Disco 5/8" ball. 2.25" OD sling shot, 2.25" Hard Driver Hammer, 2.75" OD cross over, 3" Flo Release GS spear. (MHA PT 250/3500 psi.) Test hammer in lubricator to confirm operational. Stab on well. PT stack 250/3500 psi. RIH with fishing assembly. Free up weight at 5300' 16K. Online at .75 bbl/min down CT Stack weight at 5454' CTMD. Circ pressure spiked 3000 psi. Down on pump. Hard driver fishing BHA will not function without flow rate. Attempt to PU while latched into fish and pump at .75 bbls/min. Circ pressure continues to spike. BHA needs a multi shift circ sub to divert flow rate above GS spear. POOH. Tagged up at surface. Secure well. Pop off and break down Hard Driver BHA. Make up 3" fishing BHA. 2.13" OD DFCV, Accelerator, Weight bar, BiDi Jars, TJ Hyd. Disco, Dual acting circ sub, X over, 3" Flo-Release GS spear. Stab on well. PT stack 250/3500 psi. RIH with fishing assembly. Latch into bait sub assembly on SL fish rope socket at 5454' CTMD. Saw jars go off in 30 seconds with 4k slacked of when latched into fishing profile. PU 35K 20K over string weight. Saw small jar lick. Possibly the SL jars on fish. Jars lightly firing in the down position only at 30 seconds or less. Attempt to Jar up and wait for up to 22 minutes no jar licks with multiple attempts. Slack off and pressure up G spear. PU clean 16K. No wire or obstruction to pull up against above jars. Engage fish. Attempt up jar licks with no luck. Possible jars are stroking prior to getting to overpull required weight. POOH to surface. Tagged up. Secure well. Break down BHA. Rig down SLB CTU and auxiliary equipment. Transfer remaining 6% KCL into supply tank. 175 bbls total. Return tank will get cleaned at G&I and then spotted up for filtering to prep fluid for upcoming job. SLB blow coil dry and continue to rig down. Wellsite secure. Fish remaining in hole with fish top at 5454' CTMD. 3 1/2'' g-bait sub Bowen over shot 1.75'' rope socket 10' stem knuckle joint oil jars long stroke \nspang jars 2''x6' Drive down bailer approx. 80' .125'' wire \n\nWire line initial tag of SL rope socket of fish @ 5497'. CT last tag of fish top 5454'. Possible movement of 43' up hole. Report Number 9 Report Start Date 8/24/2023 Report End Date 8/25/2023 Operation MIRU SL, TP 0 psi\nRIH with 2.8" LIB to 5481KB. Clear impression of fishing neck, no wire marks\nRDMO well Report Number 10 Report Start Date 10/11/2023 Report End Date 10/12/2023 Operation PTW, JSA with crew. MIRU SLB CTU 13 with 2.0" coil. Spot rain for rent tanks, batch mixer, Rig up 1502 hardline. Load supply tank with 300 bbls of fresh water. Transfer 100 bbls to batch mixer and mix up 6% KCL. AOGCC Jim Regg waived BOPE test witness. Start testing BOPE 250/3500 psi. Swapped transducer cable and transducer gauge. Continue testing. Secure location. Walk around completed. SDFN. Report Number 11 Report Start Date 10/12/2023 Report End Date 10/13/2023 Operation PTW, JSA. Pick injector head. Make up 40' of lubricator. API: 50-133-20585-00-00 Field: Kenai Gas Field Sundry #: 323-454 State: Alaska Rig/Service: Page 3/5 Well Name: KEU KBU 11-17X Report Printed: 12/21/2023www.peloton.com Well Operations Summary Operation YJOS attempt to make up internal dimple connector. Connector wont fit inside CT. CT reel I.D. Tag matches string database file provided form Global tubing and SLB. 2.0"x.156 wall. YJ tool hand and company rep measure CT I.D. at 1.65". and Dimple connector section of coil connector at 1.67". 2"x.156 wall coil ID should be 1.688". Download Global tubing CT spec sheet. Multiple field measurements show SLB CT reel is actually 2.0" O.D. x .175 wall. Discuss plan forward. Rig Back SLB CTU and support equipment. Send YJOS internal dimple connector to Dukowitz machine. \n\nPlan forward: continue with fishing operations. Report Number 12 Report Start Date 10/13/2023 Report End Date 10/14/2023 Operation PTW, JSA with crew. Pick injector head. Stab 40' of lubricator. Make up YHOS Fishing BHA. Internal Dimple connector, DFCV, Accelerator Jar, Weight Bar, BiDi jars, TJ hydraulic disco, Cric sub, X over and 3" GS spear. Stab on well. PT 250/3500 psi. Small leak at lubricator. Bleed down lubricator. Break down tools and set down lube to change O ring. Lubricate back up and make up Fishing BHA. Connector pull tested 25K, MHA tested 250/3500 psi. Stab on well. PT stack 250/3500 psi no leaks. RIH with fishing assembly. 0 psi WHP , well is fluid packed to surface. Tag TOF at 5452' CTMD. Normal up weight 19K. RIH WT 8500 lbs. Pick up 28K to confirm engagement of G spear and profile. Good latch. Attempt Multiple down jars. wait up to 20 minutes to fire with no luck. Start Up jars. on 3rd attempt at up jar we had a good lick with weight that fell off. Pick up 19K clean. RIH to stack at fish depth. 5452' Set down 8k. Pick up clean. POOH to check fishing assembly. At surface. Close swab. Pop off well. Recovered baited overshot, Rope socket, 2 weight bars and half of the knuckle joint. All 1.75" slick OD with a total length of 16' recovered. Remaining fish left in hole. Oil jars, Long stroke oil jars, X over, 2" bailer. 16.5' remaining fish and 105' of .125 wire. Break down fish and Yellow jacket BHA. Stack down lubricator. Rack back injector head. Install night cap. Discuss plan forward with crew. YJOS will grab burn shoe equipment and be ready to burn up wire above bailer first thing in the AM. Report Number 13 Report Start Date 10/14/2023 Report End Date 10/15/2023 Operation PTW, JSA with crew. Make up YJOS BHA Burn shoe run 1. Remaining fish 10' of 1.75" and 6' of 2.0" bailer. Stab on well. PT stack 250/3500 psi. RIH. Start burning over fish @ 5452'. Having soft stalls . POOH to add AV sub and 5' section to burn shoe. Tagged up at surface. 5' of wire inside burn shoe. Make up extension and AV sub. Stab on well. PT stack 250/3500 psi. RIH . Start milling over fish at 5452'- 5475.6' hard stall possibly slick line bailer top. Fish did not fall. POOH to surface. RIG back injector head. Nothing recovered in burn shoe. \n\nPlan forward: Run for LIB run, wire grabs. Report Number 14 Report Start Date 10/15/2023 Report End Date 10/16/2023 Operation PTW, JSA with Pollard slick line crew. RIg up slick line and make up BHA and LIB. PT lubricator 150/1500 psi. RIH with 2.7" LIB to 5441' KB. and work down for impression. POOH to surface. Impression of Knuckle ball and indications of wire. 1" sliver of wire stuck in LIB. RIH with 2.25" magnet to 5441' KB. POOH. Recovered 6 pieces of wire between 3"-6". RIH again with magnet. POOH. Recovered minimal metal shavings. RIH with 2.5" Blind box to 5441' KB and beat down 30 times. No indication of movement. POOH to surface. RIH with D&D releasable overshot to 5441' KB. Work tools but could not latch. \nRIH with Brace releasable overshot to 5441' KB. latched up. 25 jar licks at 1650 lbs. Saw stuck fish jars and spangs working. No movement of fish. Shear off and POOH. RIH with 3" GR latched to Bait sub and series 150 overshot to 5441' KB and latch fish. Broke wire above rope socket while picking up. POOH. All wire recovered. Re-head 1.5" fishing toolstring. RIH with 2.5" 2.5" SB to 5420' KB and latch. 7 jar licks at 1650 lbs. Come free. POOH . Broke skirt and dogs of overshot. RIH with 2.5" split skirt JDC to 5420' KB. 12 Jar licks and came free. POOH to surface with broken skirt and 3 broken dogs. RIH with 2.5" JDC to 5420' KB. 15 up jar licks. come free. POOH with tool string. GR bait sub and overshot remain latched to fish for CTU operations. Rig down slick line unit and depart from location. Report Number 15 Report Start Date 10/16/2023 Report End Date 10/17/2023 Operation PTW, JSA with crews. Fire up. Pick injector head and make up 40' of lubricator. Make up BHA. PT MHA 250/3500 psi. Continue making up YJOS 3" GS spear BHA with jars and accelerator. Travel to well. Well remains dead with 6% KCL 0 WHP. RIH with 3" GS spear. (fish baited with series 70 grapple overshot and bait sub) 5000' WT down 7K, up 14K. Sack weight 15K down at 5490' CTMD. PU to confirm engagement of GS profile 40K good latch. Jars fired. Set back down 2' high at 5487'. PU clean with no overpull . POOH to surface. digital WHP and Circ pressure gauges went negative after jar lick. Possible slight vacuum to formation. \n' Slick line fish recovered. 1/2 knuckle joint, oil jars, spangs, x over, and bailer 16' total. Still possibly missing 70'-80' of wire. Make up External wire grab to BHA. Stab on well. PT stack 250/3500 psi. RIH RIH Tag down 4K at 5484' Reciprocate and work wire grab 6 times. POOH to surface. Recovered 2.5'-3' of wire in 3 individual pieces. Wire grab bent in tapering towards bottom. Call out YJOS flow through wire spear. Make up motor and rope spear. BHA is 2" internal dimple, DFCV, Accel jar, Wt bar, BiDi jars, TJ, Hyd disco, Circ Sub, Mud motor, x over, Wire stop, X over, flow through rope spear. 39.63'. Stab on well. PT stack 250/3500 psi. RIH. Perform weight check at 5400' 17K up 12 down. Online .5 bbl/min 600 psi. Start stacking weight at 5481' CTMD. Hard motor stalls. Continue attempts to turn into obstruction (wire). Attempt to wash down slowly. max depth 5481' CTMD. POOH to surface. Recovered 5' of wire wrapped around spear. Rig back SLB CTU injector head. Install night cap. Location walk around complete. SDFN. API: 50-133-20585-00-00 Field: Kenai Gas Field Sundry #: 323-454 State: Alaska Rig/Service: Page 4/5 Well Name: KEU KBU 11-17X Report Printed: 12/21/2023www.peloton.com Well Operations Summary Report Number 16 Report Start Date 10/17/2023 Report End Date 10/18/2023 Operation ON LOCATION - TGSM - JSA - PERMIT. RIG UP W/L - PT LUB 150/1500 PSI - GOOD RIH W/ 2.7" LIB TO 5484'KB WT - POOH - OOH W/ NO IMPRESSION ON FACE OF LIB - POSSIBLE LIGHT IMPRESSION OF PIECE OF WIRE ON SIDE OF LIB RIH W/ 2.85" WIRE FINDER W/ 2.25" MAGNET TO 5484'KB WT - POOH - OOH W/ METAL SHAVINGS. RIH W/ 2.5" X 6' DD BAILER TO 5484'KB WT GAIN NO HOLE - POOH - OOH W/ 1 CUP CLAY. RIH W/ SAME TO 5484'KB WT - POOH - OOH W/ 1 CUP CLAY. RIH W/ SAME TO 5484'KB WT - STICKY - POOH - OOH W/ 1 CUP CLAY RIH W/ SAME TO 5484'KB WT - VERY STICKY - POOH - OOH W/ 6" PIECE OF WIRE BENT ON BOTH. ENDS - 1/2 CUP CLAY. RIH W/ SAME TO 5484'KB WT - 15 OIL JAR LICKS TO COME FREE - POOH - OOH W/ 1 CUP CLAY. RIH W/ SAME TO 5484'KB WT - 20 OIL JAR LICKS UP TO 1800 LBS - COME FREE - POOH - OOH W/1 CUP OF VERY HARD CLAY WITH METAL SHAVINGS (FLAKES) RIG DOWN W/L - SECURE WELL - CLOSE OUT PERMIT Report Number 17 Report Start Date 10/18/2023 Report End Date 10/19/2023 Operation Held PJSM and approved PTW. Warmed eq. R/u crew crane, P/u injector head and coil reel would not turn. After troubleshooting found wrap wedged at the bottom of the reel. Used come along to free reel. Inspected pipe and found flat spots. Cut off 500' of damaged coil tubing. M/u CT connector, Hyd disconnect, circ sub, jars and 2.87" wash nozzle. Tested tools. Stab on well. PT stack 250/3500 psi. RIH and tagged 5483', come on with pump 2bpm/3500psi, 5484' washed thru bridge cont washing down to 5499'. Stack couldn't make hole, p/u 5k overpull then free. P/u to 5460', RIH tagged 5474'. P/u 100' RBIH and tagged 5499'. Stack wt couldn't wash thru. Bottoms up clean w/Returns at 1/1. POOH L/d Tools. Test BOP's as per Sundry 250-3500psi. Witness waived by Jim Regg. Report Number 18 Report Start Date 10/19/2023 Report End Date 10/20/2023 Operation R/u SL, RIH w/2.75 LIB tag 5474. POOH impression of wire. RIH w/4 wire spear tagged 5474 worked tool POOH recovered 41 of wire. RIH with 2.75 LIB tagged 5665. POH slight impression of wire. Made two runs with 2.25 magnet recovered few small pieces of wire =1. RIH w/2.5 DD Bailer tag 5665 worked tool to 5666. POOH recovered sample of coal. R/d SL PJSM and PTW, MIRU 1.60 SL, Test Lub 250-3500psi. R/u SL, RIH w/2.75 LIB tag 5474. POOH impression of wire. RIH w/4 wire spear tagged 5474 worked tool POOH recovered 41 of wire. RIH with 2.75 LIB tagged 5665. POH slight impression of wire. Made two runs with 2.25 magnet recovered few small pieces of wire =1. RIH w/2.5 DD Bailer tag 5665 worked tool to 5666. POOH recovered sample of coal. R/d SL Report Number 19 Report Start Date 10/20/2023 Report End Date 10/21/2023 Operation R/u spotted crane, picked up injector, found pipe damaged on first wrap, cut off 400' of pipe PJSM and approve PTW. Found pump froze, called out for heater, thawed out pump and found ck manifold, line to BOP's up to reel was frozen. R/u triplex pump and began pumping methanol. R/u parachute over reel and applied heat. SDFN. Report Number 20 Report Start Date 10/21/2023 Report End Date 10/22/2023 Operation PJSM and apporved PTW, warmed eq. PJSM and PTW, warmed eq. Picked up injector head, M/u CT and pull test to 35k. M/u DFCV, BiDi Jar, Hydr Disconnect, Circ Sub, Mud Motor and 2.60" 4 blade mill. Picked up Lubicator, M/u 2" Internal CTC and pull test 35k. M/u BHA, DFCV, BiDi Jar, Hydr Disconnect, Cicr Sub, 2-1/8" Motor and 2.60" 4 Blade Insert Mill. Stab on well and PT 250-3000psi-good test. Open well and RIH. Stab on well, P/t 250-3000psi-good test. RIH 100fpm, tag 5690'. Pump on at 1bpm/1600psi, returns 1/1. Washed milled down f/5690' t/6845' retruns light coal. At 6846' lost all returns made 100' pickup. RIH and tagged @ 6871'. Had several hard stalls trying to work thru no luck. Tagged at 5690', pump on 1bpm/1600psi. Mill washdown to 5910'. Return 1/1 with coal at BU. Continued RIH and tag at 6767' washed mill down to 6845' and lost retruns, made 100' pickup and RIH tag at 6871', Tried to mill with several hard stalls. Contact OE. Dropped ball and opened circ sub, come on with n2 600scf, returned 50bbls holding 700psi of WHP. POOH. Bullhead N2 pressured up to 1500psi. SI well. Discuss with OE drop ball and opened circ sub. Start N2 lift, unload well while working choke maintaining 600-700psi on the wellhead. POOH. Bullhead N2 down tbg left 1150psi on tbg, SI well, L/d tools and lubricator, set back injector head. L/d tools and lubricator, set back injector head. RDMO SLB CTU Report Number 21 Report Start Date 11/2/2023 Report End Date 11/3/2023 API: 50-133-20585-00-00 Field: Kenai Gas Field Sundry #: 323-454 State: Alaska Rig/Service: Page 5/5 Well Name: KEU KBU 11-17X Report Printed: 12/21/2023www.peloton.com Well Operations Summary Operation Start up equip. P/U lub. Stab on tree p/t to 2000psi good test RIH w/ 2.25''x4' dd bailer to 2008'KB w/ tool to 2012' pooh full mud w/ big chuncks of coal, work tools to 4712'KB. finding small chunks of coal , work tools to 5736'kb sit w/ tool 5739'kb would not fall pooh w/ big chunks of coal thick slurry RIH w/ same to 5741'kb w/ tool to 5766'kb pooh w/ same Lay down lub. Secure well for night Turn in permit Report Number 22 Report Start Date 11/3/2023 Report End Date 11/4/2023 Operation Start up equip. SL RU and work tools to 5800' pooh full thick slurry w/ several chunks of coal. Steering arm broke on wheel. Repaired. continue with SL work to 5846'kb pooh 1/2 full thick mud slurry on top couple chunks of coal Lay down lub. Secure well for night cut wire rehead Turn in permits Report Number 23 Report Start Date 11/4/2023 Report End Date 11/5/2023 Operation Start up equip. SL work tools to 5893'kb pooh @ 300' directional valve quit working use double A to bump up toolstring close swab valve Rig down slickline. secure well for production Report Number 24 Report Start Date 11/8/2023 Report End Date 11/9/2023 Operation Sign permits. TGSM. Rig up on well. PT 2500 PSI- Pass. Rih w/ 2.25 X 5' DD Bailer to 5798' kb, WT to 5814' kb, pooh, ooh 3/4 full sand/mud. Rih w/ same to 5815' kb, w/t pooh. Ooh 1/2 full sand/mud. Ooh w/ tools, lay down re-head. Report Number 25 Report Start Date 11/9/2023 Report End Date 11/10/2023 Operation SL Rih w/ 2.5 X 6' DD Bailer to 5815' kb to 5822' kb, pooh, ooh 1/2 full sand/mud. Ooh w/ tools, lay down, move to different well. Spot up on next well. Report Number 26 Report Start Date 11/13/2023 Report End Date 11/14/2023 Operation SL Arrive @ KGF, sign permits. TGSM. Grab equipment from 21x-32. Rig up on well. PT 2500 PSI- Pass. Rih w/ 2" X 5' DD Bailer to 5829' kb, w/t pooh, ooh 1/3 full muddy sand. Wait on orders to install coal catcher sub. Ooh w/ tools, rig down. Move to next well. Report Number 27 Report Start Date 12/12/2023 Report End Date 12/13/2023 Operation Management decided not to install catcher sub or spend additional money for coil cleanout on well, and will move to next project on well which is convert to Pool 6 producer. API: 50-133-20585-00-00 Field: Kenai Gas Field Sundry #: 323-454 State: Alaska Rig/Service: Lease: State:Alaska Country: (TVD):Perforations (MD): Angle/Perfs: Donna Ambruz Angle @ KOP and Depth: Municipality: Well Name & Number:Kenai Gas Field USA Kenai Beluga Unit 11-17x Kenai Peninsula Borough 4/14/2009 ~ 0.7 º Last Revison Date: 6,317' - 7,762' 1.9º / 100' from 2,00' - 3,200' MD 6,453' - 7,898' 10/18/2017 Completion Fluid: Revised by: Dated Completed: Excape System Details - 13 Excape modules placed along with 2 chemical injection mandrels -Red contol line fires modules 7 - 13 & chemical injection mandrel -Green control line fires Modules 1 - 6 & chemical injection mandrel Lower Beluga Perfs MD (RKB): Module 13 = 6453' - 6463' Module 12 = 6848' - 6858' Module 11 = 6897' - 6907' Module 10 = 7010' - 7020' Module 9 = 7128' - 7138' Module 8 = 7233' - 7243' Module 7 = 7285' - 7295' Module 6 = 7348' - 7358' Module 5 = 7393' - 7403'' Tyonek Perfs MD (RKB): Module 4 = 7472' - 7482'' Module 3 = 7602' - 7612'' Module 2 = 7824' - 7834'' Module 1 = 7888' - 7898'' Top of 3-1/2" Tubing Cement @ 4,423' MD Excape System Details Flappers MD (RKB): Module 13 = 6,473' Module 12 = 6,868' Module 11 = NA Module 10 = 7,030' Module 9 = 7,148' Module 8 = 7,253' Module 7 = NA Module 6 = 7,368' (caliper 4/7/09) Module 5 = 7,413' Module 4 = 7,492' Module 3 = 7,622' (unable to pass 9/1/09) Module 2 = 7,844' Module 1 = NA KBU 11-17x Pad 41-18 439' FNL, 420' FEL, Sec. 18, T4N, R11W, S.M. TD 8,055' MD 7,919' TVD PBTD 7,975' MD 7,838' TVD Conductor 20" K55 133 ppf Top Bottom MD 0' 157' TVD 0' 157' Surface Casing 13-3/8" K-55 68 ppf Butt Top Bottom MD 0' 1,576' TVD 0' 1,575' 16" Hole Cmt w/ 410 sks (181 bbls) of 12.0 ppg, Type 1 cmt. 29 sks (40 bbls) cmt returned to surface with 100% returns. Intermediate Casing 9-5/8" L-80 40 ppf Butt Top Bottom MD 0' 5,586' TVD 0' 5,450' 12-1/4" Hole Cmt w/ 327 sks (193 bbls) of 10.5 ppg Class G Lead. Floats held. Lost 12 sks (7 bbls) during cementing process. Production Tubing 3-1/2" L-80 9.3 ppf EUE Mod Top Bottom MD 0' 8,012' TVD 0' 7,876' 8-1/2" Hole Cmt w/ 1,132 sks (235 bbls) 15.8 ppg, Class G, 100% returns. Permit #: 209-016 API #: 50-133-20585-00-00 Prop. Des: ADL - 022330 KB elevation: 88' (21' AGL) WBS #: DD.08.18948.CAP.DRL Latitude: 60º 26' 38.035" N Longitude: 151º 04' 37.405' W X: Y: Spud: 2/15/2009 15:30 hrs TD: 3/29/2009 01:30 hrs Rig Released: 3/7/2009 12:00 hrs PA #: 891006367C Chemical Injection Mandrels @ 6,645' MD, opens @ 10,032 psi & @ 7,702' MD @ 7,330' MD opens @ 9,742 psi (caliper 4/7/09) Tagged @ 7,886' (7/14/09) 2.25" Centralizer, 1.25" Swage SCHEMATIC Nolan Vlahovich Hilcorp Alaska, LLC Geotech 3800 Centerpoint Drive, Suite 1400 Anchorage, AK 99503 Tele: (907) 564-4558 E-mail: nolan.vlahovich@hilcorp.com Please acknowledge receipt by signing and returning one copy of this transmittal. Received By: Date: Date: 10/06/2023 To: Alaska Oil & Gas Conservation Commission Natural Resource Technician 333 W 7th Ave Suite 100 Anchorage, AK 99501 SFTP DATA TRANSMITTAL T#20231006 Well API #PTD #Log Date Log Company Log Type AOGCC Eset# KBU 11-17x 50133205850000 209016 9/23/2023 HALLIBURTON RMT3D MPU C-23 50029226430000 196016 9/15/2023 HALLIBURTON RBT MPU F-89A 50029232680100 223026 9/12/2023 HALLIBURTON COILFLAG MPU F-89A 50029232680100 223026 9/12/2023 HALLIBURTON RBT PCU-04 50283201000000 201193 9/14/2023 HALLIBURTON EPX PCU-04 50283201000000 201193 9/14/2023 HALLIBURTON MFC24 Please include current contact information if different from above. T38041 T38042 T38043 T38043 T38044 T38044 10/6/2023 KBU 11-17x 50133205850000 209016 9/23/2023 HALLIBURTON RMT3D Kayla Junke Digitally signed by Kayla Junke Date: 2023.10.06 15:41:18 -08'00' 1. Type of Request: Abandon Plug Perforations Fracture Stimulate Repair Well Operations shutdown Suspend Perforate Other Stimulate Pull Tubing Change Approved Program Plug for Redrill Perforate New Pool Re-enter Susp Well Alter Casing 2. Operator Name: 4. Current Well Class: 5. Permit to Drill Number: Exploratory Development 3. Address: Stratigraphic Service 6. API Number: 7. If perforating:8. Well Name and Number: What Regulation or Conservation Order governs well spacing in this pool? Yes No 9. Property Designation (Lease Number): 10. Field: 11. Total Depth MD (ft): Total Depth TVD (ft): Effective Depth MD: Effective Depth TVD: Junk (MD): 8,055'N/A Casing Collapse Structural Conductor 1,500 psi Surface 1,950 psi Intermediate 3,090 psi Production 10,540 psi Liner Packers and SSSV Type: Packers and SSSV MD (ft) and TVD (ft): 12. Attachments: Proposal Summary Wellbore schematic 13. Well Class after proposed work: Detailed Operations Program BOP Sketch Exploratory Stratigraphic Development Service 14. Estimated Date for 15. Well Status after proposed work: Commencing Operations: OIL WINJ WDSPL Suspended 16. Verbal Approval: Date: GAS WAG GSTOR SPLUG AOGCC Representative: GINJ Op Shutdown Abandoned Contact Name: Contact Email: Contact Phone: Authorized Title: Conditions of approval: Notify AOGCC so that a representative may witness Sundry Number: Plug Integrity BOP Test Mechanical Integrity Test Location Clearance Other Conditions of Approval: Post Initial Injection MIT Req'd? Yes No APPROVED BY Approved by: COMMISSIONER THE AOGCC Date: Comm. Comm. Sr Pet Eng Sr Pet Geo Sr Res Eng Other: CTCO/Fishing/N2 N/A; N/A N/A; N/A 7,919' 7,975' 7,838' Kenai Gas Field Beluga/Up Tyonek Gas 20" 13-3/8" See Schematic 3800 Centerpoint Drive, Suite 1400 Anchorage, Alaska 99503 Kenai Beluga Unit (KBU) 11-17XCO 510B Same 7,876'3-1/2" 1,200 7,991' N/A Length August 25, 2023 Excape Tubing 3-1/2" 8,012' Perforation Depth MD (ft): 5,586' See Schematic 5,750 psi 3,060 psi 3,450 psi 157' 5,450' 157' 1,576' Size 136' 9-5/8"5,565' 1,555' MD Hilcorp Alaska, LLC Proposed Pools: 9.3# / L-80 TVD Burst 8,012' 10,160 psi 1,575' Tubing MD (ft):Perforation Depth TVD (ft): Subsequent Form Required: STATE OF ALASKA ALASKA OIL AND GAS CONSERVATION COMMISSION APPLICATION FOR SUNDRY APPROVALS 20 AAC 25.280 ADL022330 209-016 50-133-20585-00-00 Tubing Size: PRESENT WELL CONDITION SUMMARY Chad Helgeson, Operations Engineer AOGCC USE ONLY Tubing Grade: chelgeson@hilcorp.com 907-777-8405 Noel Nocas, Operations Manager 907-564-5278 Suspension Expiration Date: Will perfs require a spacing exception due to property boundaries? Current Pools: MPSP (psi): Plugs (MD): 17. I hereby certify that the foregoing is true and the procedure approved herein will not be deviated from without prior written approval. Authorized Name and Digital Signature with Date: No Form 10-403 Revised 06/2023 Approved application valid for 12 months from date of approval.Submit PDF to aogcc.permitting@alaska.gov By Grace Christianson at 1:04 pm, Aug 11, 2023 323-454 Digitally signed by Noel Nocas (4361) DN: cn=Noel Nocas (4361) Date: 2023.08.11 11:37:18 - 08'00' Noel Nocas (4361) CT BOP test to 3000 psi A.Dewhurst 16 AUG 2023 X 10-404 DSR-8/14/23BJM 8/14/23 Aug 16 -bjm GCW 08/16/2023JLC 8/16/2023 08/17/23 Brett W. Huber, Sr. Digitally signed by Brett W. Huber, Sr. Date: 2023.08.17 08:03:57 -05'00' RBDMS JSB 081723 Well: KBU 11-17X Date: 8/10/23 Well Name:KBU 11-17X API Number:50-133-20585-00-00 Current Status:Offline Gas Producer Permit to Drill Number:209-016 First Call Engineer:Chad Helgeson (907) 777-8405 (907) 229-4824 (C) Second Call Engineer:Jake Flora (907) 777-8442 (720) 988-5375 (C) Max. Expected BHP:~1,335 psi @ 5356’ TVD (no new perfs) Max. Potential Surface Pressure:~ 1200 psi (highest buildup in 4 months, 1200 psi) Brief Well Summary KBU 11-17X was drilled In 2009 and completed targeting the Beluga and Upper Tyonek formation and completed as an Excape completion. The well has been a stable producer since it was originally completed. Hilcorp pulled a cap string from the well in 2017. In April of this year, the well died and found to have sand bridges preventing the flow of gas. During SL operations a tool string used in bailing sand was lost in the well with 130 of slickline wire. Multiple fishing attempts were made to recover the tool string with SL, but were unsuccessful due to the inflow of sand. The purpose of this work is to use coil tubing to cleanout the well, fish the SL tool string, unload fluid using Nitrogen, and return well to production (~550 mcf). Notes Regarding Wellbore Condition x SL tag @ 5271ft on 8/9/23 (thick mud) x Current Pressures: 630/13 (T/I) Coil Cleanout procedure (Tyonek) 1. Review all approved COAs 2. Provide 24hrs notice to AOGCC of BOP test 3. MIRU coiled tubing, PT BOPE to 3000 psi Hi 250 Low 4. RIH with coil tubing nozzle, clean out as deep as possible using KCl fluid and N2 a. Push wire & SL tools into a nest 5. Use SL and coil to fish tool 6. Cleanout well to bottom with downjet wash nozzle a. Use caution when going through Escape modules 7. Once well is cleaned out, jet well with N2 8. POOH & RDMO CTU 9. Return well to operations to flow Attachments: 1. Current Well Schematic 2. Coil Tubing BOP Diagram 3. Standard Nitrogen Operations Lease: State:Alaska Country: (TVD):Perforations (MD): Angle/Perfs: Donna Ambruz Angle @ KOP and Depth: Municipality: Well Name & Number:Kenai Gas Field USA Kenai Beluga Unit 11-17x Kenai Peninsula Borough 4/14/2009 ~ 0.7 º Last Revison Date: 6,317' - 7,762' 1.9º / 100' from 2,00' - 3,200' MD 6,453' - 7,898' 10/18/2017 Completion Fluid: Revised by: Dated Completed: Excape System Details - 13 Excape modules placed along with 2 chemical injection mandrels -Red contol line fires modules 7 - 13 & chemical injection mandrel -Green control line fires Modules 1 - 6 & chemical injection mandrel Lower Beluga Perfs MD (RKB): Module 13 = 6453' - 6463' Module 12 = 6848' - 6858' Module 11 = 6897' - 6907' Module 10 = 7010' - 7020' Module 9 = 7128' - 7138' Module 8 = 7233' - 7243' Module 7 = 7285' - 7295' Module 6 = 7348' - 7358' Module 5 = 7393' - 7403'' Tyonek Perfs MD (RKB): Module 4 = 7472' - 7482'' Module 3 = 7602' - 7612'' Module 2 = 7824' - 7834'' Module 1 = 7888' - 7898'' Top of 3-1/2" Tubing Cement @ 4,423' MD Excape System Details Flappers MD (RKB): Module 13 = 6,473' Module 12 = 6,868' Module 11 = NA Module 10 = 7,030' Module 9 = 7,148' Module 8 = 7,253' Module 7 = NA Module 6 = 7,368' (caliper 4/7/09) Module 5 = 7,413' Module 4 = 7,492' Module 3 = 7,622' (unable to pass 9/1/09) Module 2 = 7,844' Module 1 = NA KBU 11-17x Pad 41-18 439' FNL, 420' FEL, Sec. 18, T4N, R11W, S.M. TD 8,055' MD 7,919' TVD PBTD 7,975' MD 7,838' TVD Conductor 20" K55 133 ppf Top Bottom MD 0' 157' TVD 0' 157' Surface Casing 13-3/8" K-55 68 ppf Butt Top Bottom MD 0' 1,576' TVD 0' 1,575' 16" Hole Cmt w/ 410 sks (181 bbls) of 12.0 ppg, Type 1 cmt. 29 sks (40 bbls) cmt returned to surface with 100% returns. Intermediate Casing 9-5/8" L-80 40 ppf Butt Top Bottom MD 0' 5,586' TVD 0' 5,450' 12-1/4" Hole Cmt w/ 327 sks (193 bbls) of 10.5 ppg Class G Lead. Floats held. Lost 12 sks (7 bbls) during cementing process. Production Tubing 3-1/2" L-80 9.3 ppf EUE Mod Top Bottom MD 0' 8,012'TVD 0' 7,876' 8-1/2" Hole Cmt w/ 1,132 sks (235 bbls) 15.8 ppg, Class G, 100% returns. Permit #:209-016 API #:50-133-20585-00-S1 Prop. Des:ADL - 022330 KB elevation:88' (21' AGL) WBS #:DD.08.18948.CAP.DRL Latitude:60º 26' 38.035" N Longitude:151º 04' 37.405' W X: Y: Spud:2/15/2009 15:30 hrs TD:3/29/2009 01:30 hrs Rig Released:3/7/2009 12:00 hrs PA #:891006367C Chemical Injection Mandrels @ 6,645' MD, opens @ 10,032 psi & @ 7,702' MD @ 7,330' MD opens @ 9,742 psi (caliper 4/7/09) Tagged @ 7,886' (7/14/09) 2.25" Centralizer, 1.25" Swage SCHEMATIC Coiled Tubing BOP Dressed for 1.75” CT STANDARD WELL PROCEDURE NITROGEN OPERATIONS 12/08/2015 FINAL v1 Page 1 of 1 1.) MIRU Nitrogen Pumping Unit and Liquid Nitrogen Transport. 2.) Notify Pad Operator of upcoming Nitrogen operations. 3.) Perform Pre-Job Safety Meeting. Review Nitrogen vendor standard operating procedures and appropriate Safety Data Sheets (formerly MSDS). 4.) Document hazards and mitigation measures and confirm flow paths. Include review on asphyxiation caused by nitrogen displacing oxygen. Mitigation measures include appropriate routing of flowlines, adequate venting and atmospheric monitoring. 5.) Spot Pumping Unit and Transport. Confirm liquid N2 volumes in transport. 6.) Rig up lines from the Nitrogen Pumping Unit to the well and returns tank. Secure lines with whip checks. 7.) Place signs and placards warning of high pressure and nitrogen operations at areas where Nitrogen may accumulate or be released. 8.) Place pressure gauges downstream of liquid and nitrogen pumps to adequately measure tubing and casing pressures. 9.) Place pressure gauges upstream and downstream of any check valves. 10.) Wellsite Manager shall walk down valve alignments and ensure valve position is correct. 11.) Ensure portable 4-gas detection equipment is onsite, calibrated, and bump tested properly to detect LEL/H2S/CO2/O2 levels. Ensure Nitrogen vendor has a working and calibrated detector as well that measures O2 levels. 12.) Pressure test lines upstream of well to approved sundry pressure or MPSP (Maximum Potential Surface Pressure), whichever is higher. Test lines downstream of well (from well to returns tank) to 1,500 psi. Perform visual inspection for any leaks. 13.) Bleed off test pressure and prepare for pumping nitrogen. 14.) Pump nitrogen at desired rate, monitoring rate (SCFM) and pressure (PSI). All nitrogen returns are to be routed to the returns tank. 15.) When final nitrogen volume has been achieved, isolate well from Nitrogen Pumping Unit and bleed down lines between well and Nitrogen Pumping Unit. 16.) Once you have confirmed lines are bled down, no trapped pressure exists, and no nitrogen has accumulated begin rig down of lines from the Nitrogen Pumping Unit. 17.) Finalize job log and discuss operations with Wellsite Manager. Document any lessons learned and confirm final rates/pressure/volumes of the job and remaining nitrogen in the transport. 18.) RDMO Nitrogen Pumping Unit and Liquid Nitrogen Transport. CAUTION: This email originated from outside the State of Alaska mail system. Do not click links or open attachments unless you recognize the sender and know the content is safe. From:McLellan, Bryan J (OGC) To:Chad Helgeson Cc:Noel Nocas; Donna Ambruz; Cole Bartlewski Subject:RE: KBU 11-17X (PTD# 209-016) Coil Cleanout Sundry Date:Wednesday, August 16, 2023 3:41:00 PM Chad, Hilcorp has approval to begin working on the work as described in the application for sundry approval that was received by the AOGCC on 8/11/23. Regards Bryan McLellan Senior Petroleum Engineer Alaska Oil & Gas Conservation Commission Bryan.mclellan@alaska.gov +1 (907) 250-9193 From: Chad Helgeson <chelgeson@hilcorp.com> Sent: Wednesday, August 16, 2023 9:30 AM To: McLellan, Bryan J (OGC) <bryan.mclellan@alaska.gov> Cc: Noel Nocas <Noel.Nocas@hilcorp.com>; Donna Ambruz <dambruz@hilcorp.com>; Cole Bartlewski <cbartlewski@hilcorp.com> Subject: KBU 11-17X (PTD# 209-016) Coil Cleanout Sundry Bryan, As we discussed on the phone we are hoping to move in/rig up and test BOPs tomorrow on KBU 11- 17X. Can you provide us approval to get started on this project tomorrow? If you have any questions or need any additional information, please let me know. Chad Helgeson Operations Engineer Kenai Asset Team 907-777-8405 - O 907-229-4824 - C THE STATE OIALASKA GOVERNOR MIKE DUNLEAVY Taylor Wellman Operations Manager Hilcorp Alaska, LLC 3800 Centerpoint Drive, Suite 1400 Anchorage, AK 99503 Alaska Oil and Gas Conservation Commission Re: Kenai Gas Field, Beluga/Upper Tyonek Gas Pool, KBU 11-17X Permit to Drill Number: 209-016 Sundry Number: 320-085 Dear Mr. Wellman: 333 West Seventh Avenue Anchorage, Alaska 99501-3572 Main: 907.279.1433 Fox: 907.276.7542 www.00gcc.alaska.gov Enclosed is the approved application for the sundry approval relating to the above referenced well. Please note the conditions of approval set out in the enclosed form. As provided in AS 31.05.080, within 20 days after written notice of this decision, or such further time as the AOGCC grants for good cause shown, a person affected by it may file with the AOGCC an application for reconsideration. A request for reconsideration is considered timely if it is received by 4:30 PM on the 23rd day following the date of this letter, or the next working day if the 23rd day falls on a holiday or weekend. Sincerely, [� J U' r� y ce Chair DATED this day of March, 2020. RBDMS� ' MAR 0 4 2020 STATE OF ALASKA ALASKA OIL AND GAS CONSERVATION COMMISSION APPLICATION FOR SUNDRY APPROVALS 20 AAC 25.280 RECEIVED D0/2�FEB 2 4 20 0 09-S .7 Z.0 AOGCC 1. Type of Request: Abandon ❑ Plug Perforations ❑ Fracture Stimulate ❑ Repair Well ❑ Operations shutdown ❑ Suspend ❑ Perforate I] Other Stimulate ❑ Pull Tubing ❑ Change Approved Program ❑ Plug for Redrill ❑ Perforate New Pool ❑ Re-enter Susp Well ❑ Alter Casing ❑ Other: N2 ❑Q 2. Operator Name: 4. Current Well Class: 5. Permit to Drill Number: Hilcorp Alaska, LLC Exploratory ❑ Development Q • Stratigraphic ❑ Service ❑ 209-016 3. Address: 3800 Centerpoint Drive, Suite 1400 6. API Number: Anchorage Alaska 99503 50-133-20585-00-00 7. If perforating: 8. Well Name and Number: What Regulation or Conservation Order governs well spacing in this pool? CO 510A Will planned perforations require a spacing exception? Yes ❑ No ❑2 Kenai Beluga Unit (KBU) 11-17X ' 9. Property Designation (Lease Number): 10. Field/Pool(s): ADL022330 • Kenai Gas Field - Beluga/Upper Tyonek Gas Pool ' it. PRESENT WELL CONDITION SUMMARY Total Depth MD (ft): Total Depth TVD (ft): Effective Depth MD: Effective Depth TVD: MPSP (psi): Plugs (MD): Junk (MD): 8,055' 7,919' 7,975' 7,838' – 919 psi N/A NIA Casing Length Size MD TVD Burst Collapse Structural Conductor 136' 20" 157' 157' 3,060 psi 1,500 psi Surface 1,555' 13-3/8" 1,576' 1,575' 3,450 psi 1,950 psi Intermediate 5,565' 9-5/8" 5,586' 5,450' 5,750 psi 3,090 psi Production 7,991' 3-1/2" 8,012' 7,876' 10,160 psi 10,540 psi Liner Perforation Depth MD (ft): Perforation Depth TVD (ft): Tubing Size: Tubing Grade: Tubing MD (ft): See Attached Schematic See Attached Schematic Excape Tubing 3-1/2" 9.3# / L-80 8,012' Packers and SSSV Type: Packers and SSSV MD (ft) and TVD (ft): N/A; N/A N/A; N/A 12. Attachments: Proposal Summary (21 Wellbore schematic 13. Well Class after proposed work: Detailed Operations Program ❑ BOP Sketch ❑ Exploratory ❑ Stratigraphic ❑ Development ❑Q Service ❑ 14. Estimated Date for 15. Well Status after proposed work: Commencing Operations: March 6th, 2020 OIL ❑ WINJ ❑ WDSPL ❑ Suspended ❑ GAS ❑Z WAG ❑ GSTOR ❑ SPLUG ❑ 16. Verbal Approval: Date: Commission Representative: GINJ ❑ Op Shutdown ❑ Abandoned ❑ 17. 1 hereby certify that the foregoing is true and the procedure approved herein will not be deviated from without prior written approval. Authorized Name: Taylor Wellman 777-8449 Contact Name: Christina Twogood Authorized Title: Operations XMej, Contact Email: CtwO OOd W hilcor .Corn Contact Phone: 777-8443 o`/i' Authorized Signature: Date: ' &a COMMISSION USE ONLY Conditions of approval: Notify Commission so that a representative may witness Sundry Number: O Plug Integrity ❑ BOP Test ❑ Mechanical Integrity Test ❑ Location Clearance ❑ Other: 3BEIMS_f--MAR 0 4 2020 Post Initial Injection MIT Req'd? Yes No 0t../ Spacing Exception Required? Yes ❑ No Subsequent Form Required: / 0 — APPROVED BY '3 t, J qrx p(/ Approved by: COMMISSIONER THE COMMISSION Date: V vNlJ �6' c'20 Submit Form and F -4 V / 7 APProved aPPliatl e date of aPProvachments in Du licatcRIO `t'1_0143k2l/5L 2 '2 S 2.0 R Hiloory Alaska, M Well Prognosis Well: KBU 11-17X Date: 2/19/2020 Well Name: KBU 11-17X API Number: 50-133-20585-00-00 Current Status: Gas Producer Leg: N/A Estimated Start Date: March 6t', 2020 Rig: E -Line Reg. Approval Req'd? Yes Date Reg. Approval Rec'vd: Regulatory Contact: Donna Ambruz 777-8305 Permit to Drill Number: 209-016 First Call Engineer: Christina Twogood (907) 777-8443 (907) 378-7323 (C) Second Call Engineer: Ted Kramer (907) 777-8420 (985) 867-0665 (C) AFE Number: Current BHP: Max. Expected BHP: Max. Potential Surface Pressure Brief Well Summary 1,400 psi @ 6,407' TVD 1,694 psi @ 7,752' TVD 919 psi (Based on 2017 offset well RFT data) (Calculated based on current BHP) (Based on expected BHP and gas gradient to surface (0.10psi/ft)) In 2009 KBU 11-17X was drilled and completed targeting the Beluga and Upper Tyonek formation and completed as an Excape completion. The purpose of this work/sundry is to add perforations in the Upper Tyonek UT_1D sand and the Lower Beluga LB 5C and LB 3C sands. Notes Regarding Wellbore Condition • The well is currently producing 620 MCFD. • Last tag at 7,031' RKB w/ 1.5" DD Bailer on 10/29/2017 • A dummy gun run will be necessary prior to RIH. Safety ncey s • DDisccuss nitrogen asphyxiation concerns and identify any areas where nitrogen could collect and people could enter. • Consider tank placement based on wind direction and current weather forecast (venting nitrogen during this job). • Ensure all crews are aware of stop job authority. E -Line Procedure 1. MIRU E -Line and pressure control equipment. PT lubricator to 250 psi Low/ 3,000 psi High. 2. RIH with GPT tool and find fluid level. If fluid is over the depth of the new perfs, discuss using Nitrogen with the Operations Engineer. 3. If needed, RU Nitrogen Truck, pressure up on well and push water back into formation. Use GPT tool to confirm water level is below interval to pert. 4. RU perfguns. U nile.,v Alaska, LL 5. RIH and perforate the following intervals: Well Prognosis Well: KBU 11-17X Date:2/19/2020 Zone Sand Top (MD) Btm (MD) Top (TVD) Btm (TVD) FT Lower Beluga LB_3C +6,982' +7,000' +6,846' +6,828' +18' Lower Beluga LB_5C +7,315' +7,335' +7,179' +7,159' +20 UpperTyonek LIT ID +7,745' +7,752' +7,609' +7,602' +7 a. Pressure up well to 1300 psi before perforating. b. Proposed perfs also shown on the proposed schematic in red font. c. Final Perfs tie-in sheet will be provided in the field for exact perf intervals. d. Correlate using Open Hole Correlation Log provided by Geologist. Send the correlation pass to the Operations Engineer, Reservoir Engineer, and Geologist for confirmation. e. Use Gamma/CCL to correlate. f. Install Crystal gauges (or verify PTs are open to SCADA) before perforating. Record tubing pressures before and after each perforating run. g. All perforations in table above are located in the Beluga/Upper Tyonek Gas Pool based on Conservation Order No. 510A. 6. POOH. 7. RD E -Line. 8. Turn well over to production. (Test SSV with -in 5 days of stable production on well —notify AOGCC 24hrs before testing) E -line Procedure (Contingency) 1. If any zone produces sand and/or water or needs isolated: 2. MIRU E -Line and pressure control equipment. PT lubricator to 250 psi Low/ 3,000 psi High. 3. RIH and set 3-1/2" Casing Patch or set 3-1/2" CIBP above the zone and dump 35' of cement on top of the plug. Attachments: 1. Current Well Schematic 2. Proposed Well Schematic 3. Standard Well Procedure — N2 Operations n Hileerp Alaeka. LLC 209-016 50-133-20585-00-S1 ADL - 022330 )n: 88' (21' AGL) DD.08.18948.CAP.DRL 600 26'38.035" N 1510 04' 37.405'W 211512009 15:30 hrs 3/2912009 01:30 bra gid: 31712009 12:00 his 891006367C Top of 3-112" Tubing Cement @ 4,423' MD Tagged @ 7,886' (7114109) 2.25" Centralizer, 1.25" Swage Chemical Infection Mandrels @ 6,645' MD, opens @ 10,032 psi & ^ @ 7,330' MD opens@ 9,742 psi (caliper 4/7/09) Escape System Details Flappers MD (RKB): Module 13 = 6,473' Module 12 = 6,868' Module 11 = NA Module 10 = 7,030' Module 9 = 7,148' Module 8 = 7,253' Module 7 = NA Module 6 = 7,368' (caliper 4/7/09) Module 5 = 7,413' Module 4 = 7,492' Module 3 = 7,622' (unable to pass 9/1/09) Module 2 = 7,844' Module 1 = NA KBU 11-17x Pad 41-18 439' FNL, 420' FEL, Sec. 18, T4N, R11W, S.M. TD 1 8,055' MD 7,975' MD 7,919' TVD 7,838' TVD SCHEMATIC Conductor 20" K66 133 ppf Top Top Bottom MD 0' 157' TVD 0' 157' Surface Casino Kenai Beluga Unit 11.17x 13-318" K-66 68 ppf Butt Top Bottom MD 0' 1,676' TVD 0' 1,576' 16" Hole Cmt w/ 410 sks (181 bbls) of 12.0 ppg, Type 1 cmt. 29 sks (40 bbls) cmt returned to surface with 100% returns. Intermediate Casino 9-518" L-80 40 ppf Butt Top Bottom MD 0' 6,686' TVD 0' 6,460' 12-114" Hole Cmt wl 327 sks (193 bbls) of 10.5 ppg Class G Lead. Floats held. Lost 12 sks (7 bbls) during cementing process. Prgtluction Tubing 3-1/2" L-80 9.3 ppf EUE Mod Top Bottom MD 0' 8,012' TVD 0' 7,876' 8.112" Hole Cmtwl 1,132 sks (235 bbls) 16.8 ppg, Class G, 100% returns. Excaoe System Details - 13 Fxcape modules placed along An 2 chemical injection mandrels - Red Centel line fires modules 7 - 13 & chemical injection mandrel - Green control line fires Modules 1 - 6 & chemical injection mandrel Lower Beluga Perfs MD (RKBI: Module 13 = 6453'- 6463' Module 12 = 6848'- 6858' Module 11 = 6897'- 6907' Module 10 = 70101- 7020' Module 9 = 7128'-7139 Module 8 = 7233'-7243' Module 7 = 7285'-7295' Module 6 = 7348'-7358' Module 5 = 7393-7403" Tvonek Perfs MD (RKB): Module 4 = 7472'-7482" Module 3 = 7602'- 7612" Module 2 = 7824'-7834" Module 1 = 7888'- 7898" Well Name & Number: Kenai Beluga Unit 11.17x Lease: Kenai Gas Field Municipality: Kenai Peninsula Borough Slate: Alaska Count : USA Perforations (MD): 6,453' - 7,898' (TVD ) -1 6,317' - 7,762' Angle/Perfs: -0.70 Angle @ KOP and De the 1.9-1100' from 2,00'- 3,200' MD Dated Completed: 411412009 Completion Fluid: Revised by: Donna Ambruz Last Revison Date: 10118/2017 Ililcary Alaska, LL(. 209-016 50-133-20585-0051 ADL -022330 on: 88' (21' AGL) 600 26'38.035" N 1510 04' 37.405'W 2/15/2009 15:30 hrs 3/29/2009 01:30 hrs d: 3/7/2009 12:00 hrs 691006367C Top of 3-1/2" Tubing Cement @ 4,423' MD Tagged @ 7,886' (7/14/09) 2.25" Centralizer, 1.25" Swage Chemical Infection Mandrels @ 6,645' MD, opens @ 10,032 psi & @-7-,782'-MB @ 7,330' MD opens @ 9,742 psi (caliper 4/7/09) Proposed Perfs Zone TopIMD) Btm(MD) Status Date LB_3C ±6,982' ±7,000' Proposed TBD 113_5C ±7,315' ±7,335' Proposed TBD UT ID ±7,745' ±7,752' Proposed TBD Module 13 = 6,473' Module 12 = 6,868' Module 11 = NA Module 10 = 7,030' Module 9 = 7,148' Module 8 = 7,253' Module 7 = NA Module 6 = 7,368' (caliper4/7/09) Module 5 = 7,413' Module 4 = 7,492' Module 3 = 7,622' (unable to pass 9/1/09) Module 2 = 7,844' Module 1 = NA KBU 11-17x Pad 41-18 439' FNL, 420' FEL, Sec. 18, UN, R11W, S.M. J TD PBTD 8,055' MD 7,975' MD 7,919' TVD 7,838' TVD PROPOSED SCHEMATIC Conductor 20" K55 133 ppf Top Top Bottom MD 0' 157' TVD 0' 157' Surface Casing Kenai Beluga Unit 11-17x 13,3/8" K-55 68 ppf Butt Top Bottom MD 0' 1,576' TVD 0' 1,575- 16" Hole Cmt w/ 410 sks (181 bbls) of 12.0 ppg, Type 1 cmt. 29 sks (40 bbis) cmt returned to surface with 100% returns. Intermediate Casing Kenai Beluga Unit 11-17x 9-5/8" LEO 40 ppf Butt Top Bottom MD 0' 5,586' TVD 0' 5,450- 12-1/4" Hole Cmt w1327 sks (193 bbis) of 10.5 ppg Class G Lead. Floats held. Lost 12 sks (7 bbis) during cementing process. Production Tubing 3.1/2" LEO 9.3 ppf EUE Mod Top Bottom MD 0' 8,012' TVD 0' 7,876' 8-1/2" Hole Cmt w/ 1,132 sks (235 bbis) 15.8 ppg, Class G, 100% returns. Excape System Details - 13 Excape modules placed along with 2 chemical injection mandrels - Red contol line fires modules 7 - 13 & chemical injection mandrel - Green control line fires Modules 1 - 6 & Chemical injection mandrel Module 13 = 5453' - 6463' Module 12 = 6848'- 6858' Module 11 = 6897' - 6907' Module 10 = 7010'- 7020' Module 9= 7128'-7138' Module 8 = 7233'- 7243' Module 7 = 7285'- 7295' Module 6 = 7348'- 7358' Module 5 = 7393'-7403" Module 4 = 7472'-7482" Module 3 = 7602'-7612" Module 2 = 7824'-7834" Module 1 = 7888'- 7898" Well Name & Number: Kenai Beluga Unit 11-17x Lease: I Kenai Gas Field Municipality: Kenai Peninsula Borough State: Alaska Country: USA Perforations (MD): 6,453' - 7,898' (TVD): 1 6,317' - 7,762' Angle/Perfs: -0.7- Angle @ KOP and De:th: 1.901100' from 2,00'- 3,200' MD Dated Completed: 4/14/2009 Completion Fluid: Revised by: Trudi Hallett Last Revison Date: 1 1/10/2020 11 STANDARD WELL PROCEDURE l lileorp Alaska, 1.1.1: NITROGEN OPERATIONS 1.) MIRU Nitrogen Pumping Unit and Liquid Nitrogen Transport. 2.) Notify Pad Operator of upcoming Nitrogen operations. 3.) Perform Pre -job Safety Meeting. Review Nitrogen vendor standard operating procedures and appropriate Safety Data Sheets (formerly MSDS). 4.) Document hazards and mitigation measures and confirm flow paths. Include review on asphyxiation caused by nitrogen displacing oxygen. Mitigation measures include appropriate routing of flowlines, adequate venting and atmospheric monitoring. 5.) Spot Pumping Unit and Transport. Confirm liquid N2 volumes in transport. 6.) Rig up lines from the Nitrogen Pumping Unit to the well and returns tank. Secure lines with whip checks. 7.) Place signs and placards warning of high pressure and nitrogen operations at areas where Nitrogen may accumulate or be released. 8.) Place pressure gauges downstream of liquid and nitrogen pumps to adequately measure tubing and casing pressures. 9.) Place pressure gauges upstream and downstream of any check valves. 10.) Wellsite Manager shall walk down valve alignments and ensure valve position is correct. 11.) Ensure portable 4 -gas detection equipment is onsite, calibrated, and bump tested properly to detect LEL/H2S/CO2/O2 levels. Ensure Nitrogen vendor has a working and calibrated detector as well that measures 02 levels. 12.) Pressure test lines upstream of well to approved sundry pressure or MPSP (Maximum Potential Surface Pressure), whichever is higher. Test lines downstream of well (from well to returns tank) to 1,500 psi. Perform visual inspection for any leaks. 13.) Bleed off test pressure and prepare for pumping nitrogen. 14.) Pump nitrogen at desired rate, monitoring rate (SCFM) and pressure (PSI). All nitrogen returns are to be routed to the returns tank. 15.) When final nitrogen volume has been achieved, isolate well from Nitrogen Pumping Unit and bleed down lines between well and Nitrogen Pumping Unit. 16.) Once you have confirmed lines are bled down, no trapped pressure exists, and no nitrogen has accumulated begin rig down of lines from the Nitrogen Pumping Unit. 17.) Finalize job log and discuss operations with Wellsite Manager. Document any lessons learned and confirm final rates/pressure/volumes of the job and remaining nitrogen in the transport. 18.) RDMO Nitrogen Pumping Unit and Liquid Nitrogen Transport. 12/08/2015 FINAL vl Page 1 of 1 • STATE OF ALASKA • RECEIVED ALASKA OIL AND GAS CONSERVATION COMMISSION OCT 2 5 2017 REPORT OF SUNDRY WELL OPERATIONS AOGCC 1.Operations Abandon p [J Plug Perforations U Fracture Stimulate U Pull Tubing U Operations shutdown [J Performed: Suspend ❑ Perforate ❑ Other Stimulate ❑ Alter Casing ❑ Change Approved Program ❑ Plug for Redrill ❑ srforate New Pool ❑ Repair Well ❑ Re-enter Susp Well ❑ Other: Pull Cap String ❑., 2.Operator 4.Well Class Before Work: 5.Permit to Drill Number: Name: Hilcorp Alaska,LLC Development ❑✓ Exploratory ❑ 209-016 3.Address: 3800 Centerpoint Dr,Suite 1400 Anchorage, Stratigraphic❑ Service ❑ 6.API Number: AK 99503 50-133-20585-00-00 7.Property Designation(Lease Number): 8.Well Name and Number: ADL022330 Kenai Beluga Unit(KBU) 11-17X 9.Logs(List logs and submit electronic and printed data per 20AAC25.071): 10.Field/Pool(s): N/A Kenai Gas Field-Beluga/Upper Tyonek Gas 11.Present Well Condition Summary: Total Depth measured 8,055 feet Plugs measured N/A feet true vertical 7,919 feet Junk measured N/A feet Effective Depth measured 7,975 feet Packer measured N/A feet true vertical 7,838 feet true vertical N/A feet Casing Length Size MD TVD Burst Collapse Structural Conductor 136' 20" 157' 157' 3,060 psi 1,500 psi Surface 1,555' 13-3/8" 1,576' 1,575' 3,450 psi 1,950 psi Intermediate 5,565' 9-5/8" 5,586' 5,450' 5,750 psi 3,090 psi Production 7,991' 3-1/2" 8,012' 7,876' 10,160 psi 10,540 psi Liner Perforation depth Measured depth See Attached Schematic SCANNEDNOV 1 3 201 True Vertical depth See Attached Schematic Tubing(size,grade,measured and true vertical depth) Excape Tubing 3-1/2" 9.3#/L-80 8,012' Packers and SSSV(type,measured and true vertical depth) N/A;N/A N/A;N/A 12.Stimulation or cement squeeze summary: N/A Intervals treated(measured): N/A Treatment descriptions including volumes used and final pressure: N/A 13. Representative Daily Average Production or Injection Data Oil-Bbl Gas-Mcf Water-Bbl Casing Pressure Tubing Pressure Prior to well operation: 0 566 7 0 72 Subsequent to operation: 0 804 6 0 72 14.Attachments(required per 20 AAC 25.070,25.071,&25.283) 15.Well Class after work: Daily Report of Well Operations ED Exploratory❑ Developments Service ❑ Stratigraphic ❑ Copies of Logs and Surveys Run ❑ 16.Well Status after work: Oil ❑ Gas Q WDSPL❑ Printed and Electronic Fracture Stimulation Data ❑ GSTOR ❑ WINJ ❑ WAG ❑ GINJ ❑ SUSP❑ SPLUG❑ 17. I hereby certify that the foregoing is true and correct to the best of my knowledge. Sundry Number or N/A if C.O.Exempt: N/A Authorized Name: Chad Helgeson 777-8405 Contact Name: Ted Kramer Authorized Title: Operations Manager Contact Email: tkrameri hilcoro.com Authorized Signature: �� 'L�� //�� Date:IO 777-8420 l///'7 Contact Phone: Form 10-404 Revised 4/2017 /` e, l/` 7 l7 �^ („C� Bri S OCT 2 7 2017 Submit Original Only • . Hilcorp Alaska, LLC Weekly Operations Summary Well Name Rig API Number Well Permit Number Start Date End Date KBU 11-17X Cap String Truck 50-133-20585-00 209-016 10/14/17 10/14/17 Daily Operations: 10/14/2017-Saturday Arrive @ shop get D-coil unit and crew. Arrive @ KGF JSA/TGSM. Spot up crane pick well house. Rig up D-coil unit, bleed pack off and back off packing nut 1/2 turn. Start OOH, C-line stuck, pull 3,000 lbs comes free. POOH. See hole in line @ 500' in spool. OOH, line has broken counter is off but looks like only check valve left in hole. Rig down. 1' 1" OD check valve most likely @ 7,285' KB, probably under fill. Re-set well house. Move unit and mast truck to CLU-09. Arrive @ shop. • • II KBU 11 -17x Pad 41-18 SCHEMATIC 439' FNL, 420' FEL, Hileorp.kla"ka.LI,C Sec. 18, T4N, R11 W, S.M. Permit#: 209-016 Conductor API#: 50-133-20585-00-S1ti 20" K55 133 ppf Prop.Des: ADL-022330 7` . +� TopBottom KB elevation: 88' (21'AGL) x ', MD 0' 157' WBS#: DD.08.18948.CAP.DRL TVD 0' 157' Latitude: 60°26'38.035"N '.4 14, Longitude: 151°04'37.405'W O. ' I 1/4 Mk Surface Casing Ili X: 13-3/8" K-55 68 ppf Butt Y: '• Top Bottom Spud: 2/15/2009 15:30 hrs , MD 0' 1,576' TD: 3/29/2009 01:30 hrs - TVD o' 1,575' Rig Released: 3/7/2009 12:00 hrs •}' ' ,, PA#: 891006367C �= r 16"Hole Cmt w/410 sks(181 bbls)of 12.0 } 6 , ppg,Type 1 cmt. 29 sks(40 bbls)cmt returned to surface with 100%returns. it 4 Intermediate Casing 9-5/8" L-80 40 ppf Butt 4. sr Top Bottom Top of 3-1/2"Tubing Cement s. MD 0' 5,586' @ 4,423'MD it TVD 0' 5,450' ili, 12-1/4"Hole Cmt w/327 sks(193 bbls)of iI 10.5 ppg Class G Lead. Floats held. Tagged @ 7,886' (7/14/09) �{ Lost 12 sks(7 bbls)during cementing process. 2.25"Centralizer,1.25"Swage t r# Production Tubing 3-1/2" L-80 9.3 ppf EUE Mod t; Top Bottom I.. lk MD 0' 8,012' Chemical Injection Mandrels ' x TVD 0' 7,876' @ 6,645'MD, opens @ 10,032 psi v0 & "- ` lit 8-1/2"Hole Cmt w/1,132 sks(235 bbls) @ 7,702'MD 15.8 ppg,Class G,100%returns. @ 7,330'MD opens @ 9,742 psi ,a j I (caliper 4/7/09) i 1 ,0. Excape System Details 'M1 , - 13 Excape modules placed along N. I with 2 chemical injection mandrels -Red contol line fires modules 7-13 ,. i &chemical injection mandrel ',.. " Green control line fires Modules 1 -6 " 1 1 l &chemical injection mandrel Lower Beluga Perfs MD(RKB): Module 13=6453'-6463' .' EX Module 12=6848'-6858' 0+ Module 11 =6897'-690T Module 10=7010'-7020' Excape System Details Module 9= 7128'-7138' Flappers MD(RKB): I �'I Module 8 = 7233'-7243' Module 13= 6,473' " Module 12= 6,868' If t Module 7 = 7285'-7295' Module 11 = NA Module 6 = 7348'-7358' ME Module 10= 7,030' Module 5 = 7393'-7403" �,. Module 9 = 7,148' ' Tyonek Perfs MD(RKB): , Module 8 = 7,253' Module 4 = 7472'-7482" Module 7 = NA Module 3 = 7602'-7612" Module 2 = 7824'-7834" Module 6 = 7,368' (caliper 4/7/09) TD PBTD Module 1 = 7888'-7898" Module 5 = 7,413' 8,055'MD 7,975'MD Module 4 = 7,492' 7,919'TVD 7,838'TVD Module 3 = 7,622' (unable to pass 9/1/09) Module 2 = 7,844' Module 1 = NA Well Name&Number: Kenai Beluga Unit 11-17x Lease: Kenai Gas Field Municipality: Kenai Peninsula Borough State: Alaska Country. USA Perforations(MD): 6,453'-7,898' (TVD): 6,317'-7,762' Angle/Perls: -0.7° Angle @ KOP and Depth: 1.9°/100' from 2,00'-3,200'MD Dated Completed: 4/14/2009 Completion Fluid: Revised by: Donna Ambruz Last Revison Date: 10/18/2017 • 1 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. cs,Q q - J J Well History File Identifier Organizing (done) ❑ Two -sided 111 I1IllIIll 11111 ❑ Rescan Needed IIIIIIIllhI 1111111 RE AN DIGITAL DATA OVERSIZED (Scannable) /GrescaIe Color Items: ❑ Diskettes, No. ❑ Maps: items: ❑ Other, No/Type: ❑ Other Items Scannable by a Large Scanner ❑ Poor Quality Originals: OVERSIZED (Non - Scannable) ❑ Other: ❑ Logs of various kinds: NOTES: ❑ Other:: 4211 BY: D ate: U k /s/ AA p Project Proofing 111 111111111111111 BY: Mari Date: • /s/ pi Scanning Preparation 1 x 30 = oa + 1 � 7 = TOTAL PAGES 1 q ; 490 I (Count does not include cover sheet) n /� BY: Date: ( � 1 / /s/ V V' Production Scanning Ill 11111 111111 Stage 1 Page Count from Scanned File: 1 17 (Count does include covers et) Page Count Matches Number in Scanning Preparation: YES NO BY: Date: S (r /s/ ► ' 1 P 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. Ill 1I1111111I 11111 ReScanned (111111111111111 BY: Maria Date: /s/ Comments about this file: Quality Checked 1311 III 111 I I 10/6/2005 Well History File Cover Page.doc DATA SUBMITTAL COMPLIANCE REPORT 4/26/2011 Permit to Drill 2090160 Well Name /No. KENAI BELUGA UNIT 11 -17X Operator MARATHON OIL CO API No. 50- 133 - 20585 -00 -00 MD 8055 TVD 7919 Completion Date 4/15/2009 Completion Status 1 -GAS Current Status 1 -GAS UIC N REQUIRED INFORMATION / Mud Log No Samples No Directional Survey Cr/ .110 DATA INFORMATION Types Electric or Other Logs Run: Quad- Combo, MFT, CBL (data taken from Logs Portion of Master Well Data Maint Well Log Information: Log/ Electr • Data Digital Dataset Log Log Run Interval OH / T .e MedlFrmt Number Name Scale Media No Start Stop CH Received Comments Rpt Report: Final Well R Open 5/20/2009 Final Well Report, Teb of Content, Equip & Crew, Well Details, Geo Data, Drill Data, Daily Reps D C Las 18040 R 'E eport: Final Well R Open 5/20/2009 Final Well Report, Teb of Content, Equip & Crew, Well Details, Geo Data, Drill Data, Daily Reps w /3D PDS graphcis g Mud Log 2 Col 157 8055 Open 5/20/2009 MD Formation Log ..L g Mud Log 2 Col 157 8055 Open 5/20/2009 TVD Formation Log `Log Mud Log 2 Col 157 8055 Open 5/20/2009 MD Drilling Dynamics /og Mud Log 2 Col 157 8055 Open 5/20/2009 TVD Drilling Dynamics ''L Induction /Resistivity 25 Col 5585 8051 Open 5/20/2009 MD Quad Combo Log Sonic 25 Col 5585 8039 Open 5/20/2009 MD Comp Sonic III Log Induction /Resistivity 25 Col 5449 7917 Open 5/20/2009 TVD Array Induct, Shallow Focus og Neutron 5 Col 5585 8008 Open 5/20/2009 MD Dens, Neutron, Sonic, Water Saturation og Induction /Resistivity 5 Col 5585 8051 Open 5/20/2009 MD Array Induct, Shallow Focus Log Caliper log 5 Col 5585 8054 Open 5/20/2009 MD Hole Volume Caliper Log Induction /Resistivity 25 Col 5585 8051 Open 5/20/2009 MD Array Induct, Vectar Processing Log Neutron 25 Col 5585 8008 Open 5/20/2009 MD Photo Dens, Dual Spaced Nuetron. Log Formation Tester Blu 6200 7941 Open 5/20/2009 MD Formation Tester 1 DATA SUBMITTAL COMPLIANCE REPORT 4/26/2011 Permit to Drill 2090160 Well Name /No. KENAI BELUGA UNIT 11 -17X Operator MARATHON OIL CO API No. 50 -133- 20585 -00 -00 MD 8055 TVD 7919 Completion Date 4/15/2009 Completion Status 1 -GAS Current Status 1 -GAS UIC N >Cog Formation Tester Blu 6200 7941 Open 5/20/2009 MD Formation Tester 2 1 t4og Cement Evaluation 5 BIu 4300 7900 Case 5/20/2009 MD Dual Radial GR, CCL, CBL Well Cores /Samples Information: Sample Interval Set Name Start Stop Sent Received Number Comments • ADDITIONAL INFORMATION Well Cored? Y N Daily History Received? N Chips Received? '71T ' Formation Tops N Analysis Received? Comments: Compliance Reviewed By: :11ft Date: 1 • • 1 Marathon Alaska Production LLC Alaska Asset Team Marathon P.O. Box 1949 MARATHON ® Alaska Production LLC Kenai, AK 99611 Telephone 907/283 -1371 Fax 907/283 -1350 September 18, 2009 Mr. Winton Aubert Alaska Oil & Gas Conservation Commission 333 W 7 Ave Anchorage, Alaska 99501 Reference: 10 -404 Report of Sundry Well Operations Field: Kenai Gas Field Well: Kenai Beluga Unit 11 -17x Dear Mr. Aubert: Attached for your records is the10 -404 Report of Sundry Well Operations for KBU 11 -17x well. This report covers the capillary string installation performed under Sundry #09 -214. The 3/8" capillary string was installed on 9/3/2009 and set at a depth of 9' MD. 7 tys wok. Please contact me at (907) 283 -1371 if you have any questions or need additional information. Sincerely, W e AAA ,, d . Kevin J. Skiba Regulatory Compliance Technician Enclosures: 10 -404 Report of Sundry Well Operations cc: Houston Well File Operations Summary Kenai Well File Well Schematic KJS STATE OF ALASKA 4(231too4 ALAS IL AND GAS CONSERVATION COMMIS I N REPORT OF SUNDRY WELL OPERATIONS 1. Operations Abandon Li Repair WeIlH Plug Perforations H Stimulate Li Other U Install Capillary Performed: Alter Casing ❑ Pull Tubin❑ Perforate New Pool ❑ Waiver Time Extension ❑ String / Change Approved Program ❑ Operat. Shutdowr❑ Perforate ❑ Re -enter Suspended Well ❑ 2. Operator 4. Well Class Before Work: 5. Permit to Drill Number: ✓ Name: Marathon Oil Company Development 0 Exploratory 209 -016 3. Address: PO Box 1949 Strati ra hic g p ❑ Service ❑ 6. API Number: Kenai Alaska, 99611 -1949 50- 133 - 20585 -00 7. KB Elevation (ft): 9. Well Name and Number: 88' (21' AGL) Kenai Beluga Unit 11 -17x 8. Property Designation: 10. Field /Pool(s): ADL - 022330 / Kenai Gas Field / Beluga & Upper Tyonek Pools 11. Present Well Condition Summary: Total Depth measured 8,055' ' feet Plugs (measured) NA true vertical 7,919' feet Junk (measured) NA Effective Depth measured 7,975' / feet true vertical 7,839' / feet Casing Length Size MD TVD Burst Collapse Structural Conductor 136' 20" 157' 157' 3,060 psi 1,500 psi Surface 1,555' 13 -3/8" 1,576' 1,575' 3,450 psi 1,950 psi Intermediate 5,565' 9 -5/8" 5,586' 5,450' 5,750 psi 3,090 psi Production 7,991' 3 -1/2" 8,012' 7,876' 10,160 psi 10,540 psi Liner Perforation depth: Measured depth: 6,453' - 7,898' True Vertical depth: 6,317' - 7,762' Excape Tubing 3 -1/2" L -80 8,012' Tubing: (size, grade, and MD) Capillary String 3/8" 2205 Stainless Steel 2 7 Z CS y It i1 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 7,149' 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 0 14 14 565 Subsequent to operation: 0 0 - 13 325 14. Attachments: 15. Well Class after work: Copies of Logs and Surveys Run Exploratory ❑ Development 0 Service ❑ Daily Report of Well Operations X 16. Well Status after work: Oil ❑ Gas IN 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 -214 ./ Contact Kevin Skiba (907) 283 -1371 Printed Name Kevin J. Skiba $ Title Regulatory Compliance Technician Signature ,W Phone (907) 283 -1371 Date September 18, 2009 Form 10 -404 Revised 04/2006 r Submit Original Only • • M arat hon Operations Summary Report NAY ; Oil C rest pany Well Name: KENAI BELUGA UNIT 11 -17X Daily Operations Report Date: 8/27/2009 Job Category: R &M MAINTENAN 24 Hr Summary Install chemical injection capillary string Ops Trouble Start Time End Time Dur(hrs) Ops Code Activity Code Status Code Comment 07:30 08:15 0.75 SAFETY MTG AF Arrive location, obtain safe work permit hold PJSM- topics discussed - review JSA's, assign jobs, overhead loads, pinch points, active gas production pad, red lights for fire, blue lights for gas emission, sirens, muster area, emergency numbers, eye wash stations, simultaneous operations, buddy rule, three second rule. Kevin Herrin was appointed to Stop the Job drill. Kevin will stop the job in a safe and orderly manner if he observes an unsafe operation or does not understand a procedure that could be potentially unsafe. When the job is stopped, we will review the issue and either make sure Kevin understands or the issue is mitigated to make it safe. 08:15 11:30 3.25 RURD COIL AF Rig up BJ DynaCoil unit. Lay down containment around cellar, pressure on wellhead is 2200 #, bleed off wellhead pressure, remove night cap, install extention and packoff, set fluid control valve pressure to 3,450 #, pull test BHA - 500 # - test good, install injector head. BHA - outside diameter on centralizer fins = 2.19" 11:30 12:00 0.50 TEST TREE AF Pressure test tree and injector head to 3000 # - test good. 12:00 16:30 4.50 RUNPUL COIL AF Run DynaCoil .378" OD into well at 100 fpm to 6985 feet measured depth bridge. Made multiple attempts to get down. No change in bridge depth. POOH 16:30 16:45 0.25 RURD COIL AF Rig down coil unit for evening. 16:45 17:00 0.25 SECURE WELL AF Secure wellhead for evening. Report Date: 8128/2009 Job Category: R &M MAINTENANCE 24 Hr Summary Install 318" capillary chemical injection string. Centralizer fins cut down to 1.80 inches. Hit bridge at 7235 feet measured depth. Unable to install capillary string. Rig down. Turn well back to production. Ops Trouble Start Time End Time Dur(hrs) Ops Code Activity Code Status Code Comment 07:30 08:15 0.75 SAFETY MTG AF Arrive location, obtain work permit hold PJSM- topics discussed - review JSA's, assign jobs, overhead loads, pinch points, active gas production pad, red lights for fire, blue lights for gas emission, sirens, muster area, emergency numbers, eye wash stations, simultaneous operations, buddy rule, three second rule, emergency numbers, emergency vehicles and keeping focus. 08:15 09:15 1.00 RURD COIL AF Rig up coiled tubing unit. Pull test BHA to 500 # - test good. 09:15 09:30 0.25 TEST WLHD AF Pressure test wellhead and packoff to 3200 # - test good. 09:30 16:30 7.00 RUNPUL COIL AF run into hole with 318" tubing for chemical injection. Centralizer fins on BHA cut down to 1.80 inches OD. Hit bridge at 6985 feet measured depth. Worked tubing, no changes in bridge depth. Opened well up to production and pressure on wellhead dropped to 2030 #. Worked tool through bridge and down to 7235 feet measured depth. Pressure on welllhead down to 1550 #with well making 3.8 MM. At 13:45 hours shut well in and worked tubing. No change in bridge depth. Pressure at wellhead built up to 2000 #. At 14:15 opened well up to production and worked tubing. Bridge at 7235 feet measured depth. Wellhead pressure down to 1650 #. POOH Shut well in at 15:00 hours. 16:30 17:00 0.50 RURD COIL CS Rig down coil unit from wellhead 17:00 17:30 0.50 SECURE WELL AF secure wellhead, turn in work permit, leave location. Report Date: 9/2/2009 Job Category: R &M MAINTENANCE 24 Hr Summary Work swages down to 7620'. Will continue on Thursday. Ops Trouble Start Time End Time Dur(hrs) Ops Code Activity Code Status Code Comment 07:00 08:00 1.00 SAFETY MTG AF Attend KGF monthly safety meeting with Pollard crew. 08:00 08:45 0.75 SAFETY MTG AF Hold PJSM. Discuss pollard JSA, safety checklist, assign tasks and issue permit. :45 10:15 1.50 RURD SLIK AF Spot and RU Pollard Wireline. PU 1.85" swage and stab on. :15 10:30 0.25 TEST EQIP AF test lubricator to 3000 psi with water. 12:00 1.50 RUNPUL SLIK AF RIH 1.85" swage. Unable to pass 6865' RKB. POH. www.peloton.com Report Printed: 9/9/2009 • • Marathon Operations Summary Report Oil Company Well Name: KENAI BELUGA UNIT 11 -17X Ops Trouble Start Time End Time Dur(hrs) Ops Code Activity Code Status Code Comment 12:00 13:30 1.50 RUNPUL SLIK AF RIH 2.56" swage. Unable to work past 6865' RKB. Suspect flapper. POH 13:30 14:30 1.00 RUNPUL SLIK AF RIH 2.70" pointed swage to break flapper. Broke flapper at 6865' RKB. Work down to 7251' RKB. Tools drag below 7175'. no Spang action. POH to check tools 14:30 15:30 1.00 RUNPUL SLIK AF RIH 2.70" pointed swage to break flapper. Broke flapper at 7251' RKB. Work down to 7367' RKB. Tools drag below 7175'. POH. 15:30 16:30 1.00 RUNPUL SLIK AF RIH 1.85" swage. Unable to pass 7620'. Tools drag below 7175'. POH. 16:30 17:30 1.00 RURD SLIK AF Secure location. Close permit and leave location. Will continue job on Thursday. Daily Operations Report Date: 9/4/2009 Job Category: R &M MAINTENANCE 24 Hr Summary RIH 1.85" to 7458'. Take sample from 7356'. half full of frac sand. Ops Trouble Start Time End Time Dur (hrs) Ops Code Activity Code Status Code Comment 07:30 08:15 0.75 SAFETY MTG AF Hold PJSM. Discuss pollard JSA, safety checklist, assign tasks and issue permit. 08:15 08:45 0.50 RURD SLIK AF RU Slickline unit. PU 1.85" fluted centralizer and sharp bottom sub. Stab on well. 08:45 09:00 0.25 TEST EQIP AF test lubricator to 3000psi with water. 09:00 11:45 2.75 RUNPUL SLIK AF RIH 1.85" OD assy.Saw first drag at 7217'. Worked down to 7458'. 11:45 13:30 1.75 RUNPUL SLIK AF RIH fluid sampler to 7168'. Work down to 7372'. Pick up to 7362' and wait for bailer to close. POH. Flex sand stopped the bottom valve from closing and bailer was empty. 13:30 1500 1.50 RUNPUL SLIK AF RIH same bailer to 7356' and wait for timer to close bailer. POH. Bailer was 1/2 full offrac sand and flex sand. 15:00 16:00 1.00 WAITON ORDR AF Stand by for decision and how to proceed. 16:00 17:00 1.00 RURD SLIK AF Rig down unit to perpare to run capillary string. Report Date: 9/4/2009 Job Category: R &M MAINTENANCE 24 Hr Summary Ran Capillary string and hung off at 7285'. Connected to skid. Ops Trouble Start Time End Time Dur (hrs) Ops Code Activity Code Status Code Comment 07:30 08:15 0.75 SAFETY MTG AF Hold PJSM. Discuss BJ Chemical JSA. Assign tasks and issue work authorization. 08:15 10:45 2.50 RURD COIL AF Spot and rigup capillary string unit. Make up equipment to tree. Stab injector. BHA consists of connector, centralizer 1.80 ", and injectior valve. 10:45 11:00 0.25 TEST _ EQIP AF Test stripper 250 / 3000 psi. Good test. 11:00 13:00 2.00 RUNPUL COIL AF RIH 3/8" cap string. target depth 7285' (after 2 days slickline). Tag up at 7115'. - Set 400# down weight on tools and SD job. 13:00 14:00 1.00 RUNPUL COIL AF Resume job. Tools are free. RIH to 7375' and tag. POH to 72 Top pert of module 7. 14:00 15:30 1.50 RURD COIL AF Hang off string. Set extra pipe on spool on ground and RU to injection skid. Pump 26 gal foamer to fill cap string. 15:30 16:30 1.00 RURD COIL AF RD baby CT unit. Leave location. www.peloton.com Report Printed: 919/2009 Permit #: 209 -016 API # KBU 11 -17x API #: 50- 133 - 20585 -00 -S1 Pad 41 -18 Prop. Des: ADL - 022330 439' FNL, 420' FEL, MARATHON KB elevation: 88' (21' AGL) WBS #: DD.08.18948.CAP.DRL Sec. 18, T4N, R11 W, S.M. Latitude: 60° 26' 38.035" N Conductor Longitude: 151° 04' 37.405' W I 1 20" K55 133 ppf Top Bottom X: 11 MD 0' 15T Y: TVD 0' 157' Spud: 2/15/2009 15:30 hrs ' TD: 3/29/2009 01:30 hrs Surface Casing Rig Released: 3/7/2009 12:00 hrs 13 - 3/8" K - 55 68 ppf Butt PA #: 891006367C Top Bottom MD 0' 1,576' i TVD 0' 1,575' f 16" Hole Cmt w/ 410 sks (181 bbls) of 12.0 Top of 3 - 1/2" Tubing Cement - ppg, Type 1 cmt. 2 sks (40 bbls) cmt @ 4,423' MD returned to surface with 100% returns. t I 1 Intermediate Casing 9 -5/8" L -80 40 ppf Butt Tagged @ 7,886' (7/14/09) .+_ 2.25" Centralizer, 1.25" Swage Top Bottom g •, MD 0' 5,586' TVD 0' 5,450' Chemical Injection Mandrels ' '•, 1 12-1/4" Hole Cmt w/ 327 sks (193 bbls) of @ 6,645' MD, opens @ 10,032 psi !' 10.5 ppg Class G Lead. Floats held. & t` Lost 12 sks (7 bbls) during cementing process. @ 7,7024A-D- : @ 7,330' MD opens @ 9,742 psi J Production Tubing (caliper 4/7/09) - a i 3 -1/2" L -80 9.3 ppf EUE Mod Top Bottom - 1 MD 0' 8,012' TVD 0' 7,876' -1) 8 -1/2" Hole Cmt w/ 1,132 sks (235 bbls) Capillary String Tubing (Installed 9/3/09) DI 15.8 ppg, Class G, 100% returns. 3/8" 2205 Stainless Steel 71 Top Bottom Excape System Details MD Surf 7,285' TVD Surf 7,149' 13 Excape modules placed along I with 2 chemical injection mandrels Set above top of module #7 r • - Red contol line fires modules 7 - 13 & chemical injection mandrel it g I la - CS control line fires Modules 1 - 6 Excape System Details got C. & chemical injection mandrel Flappers MD (RKB): 41; 101 Lower Beluga Perfs MD (RKB): Module 13 = 6,473' �� Module 13 = 6453' - 6463' Module 12 = 6,868' ; Module 12 = 6848' - 6858' Module 11 = NA 111 Module 11 = 6897' - 6907' Module 10 = 7,030' r, Module 10 = 7010' - 7020' Module 9 = 7,148' Module 9 = 7128' - 7138' Module 8 = 7,253' ' Module 8 = 7233' - 7243' Module 7 = NA I I Module 7 = 7285' - 7295' Module 6 = 7,368' (caliper 4/7/09) �EJI Module 6 = 7348' - 7358' Module 5 = 7,413' Module 5 = 7393' - 7403" Module 4 = 7,492' Tyonek Perfs MD (RKB): Module 3 = 7,622' (unable to pass 9/1/09) TD PBTD Module 4 = 7472' - 7482" Modulle 2 = 7,844' 8,055' MD 7,975' MD Module 3 = 7602' - 7612" Module 1 = NA 7,919' TVD 7,838' TVD Module 2 = 7824' - 7834" Module 1 = 7888' - 7898" I i _ Well Name & Number: _ Kenai Beluga Unit 11 -17x _ Lease: Kenai Gas Field Municipality: Kenai Peninsula Borough State: Alaska Country: USA Perforations (MD): 6,453' - 7,898' (TVD): 6,317' - 7,762' Angle /Perfs: - 0.7 ° Angle @ KOP and Depth: 1.9° / 100' from 2,00' - 3,200' MD Dated Completed: 4/14/2009 Completion Fluid: Revised by: Kevin Skiba Last Revison Date: 9/9/2009 ill 1111 F; fr t o i , r g e a r g , ® 1 eE , , � a i k Eg I _ i SARAH PAL1N, GOVERNOR 4.- 6 ALASKA. �r ` ALASKA 0114 AND GAS r 333 W. 7th AVENUE, SUITE 100 CONSERVATION COMMISSION /" ANCHORAGE, ALASKA 99501 -3539 PHONE (907) 279 -1433 S FAX (907) 276 -7542 Michael D. Dammayer Production Engineer Marathon Oil Company PO Box 1949 Kenai, AK 99611 Re: Kenai Gas Field, Beluga and Upper Tyonek Pools, Kenai Beluga Unit 11 -17x Sundry Number: 309 -214 Dear Mr. Dammayer: 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, i 1 Daniel T. Seamount, Jr. 7-71- Chair DATED this day of July, 2009 End. 00P -®1 0 • Marathon Oil Company Alaska Asset Team M Marathon P .O. Box 19 K enai, AK 9 M ARATHON O B I Company Telephone 907/283 -1371 Fax 907/283 -1350 June 22, 2009 RECEIVED v UN 2 C 2009 Mr. Winton Aubert 4 laska Oil cU Gas , Alaska Oil & Gas Conservation Commission o ns. Commission 333 W 7 Ave Anchora Anchorage, Alaska 99501 Reference: 10 -403 Application for Sundry Approvals Field: Kenai Gas Field Well: Kenai Beluga Unit 11 -17x Dear Mr. Aubert: Marathon proposes to run a 3/8" capillary string in KBU 11 -17x to mitigate water loading. The target setting depth for this capillary string is 7,892' MD. Please call me at (907) 283 -1371 if you have any questions or need additional information. Sincerely, %.3 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 — lir STATE OF ALASKA 20 09 • 00 ALASKA OIL AND GAS CONSERVATION COMMISSION " laSk8 Oil & 'r �►i ` APPLICATION FOR SUNDRY APPROVALS � ° 4 iir assrcli 20 AAC 25.280 1. Type of Request: Abandon ❑ Suspend ❑ Operational shutdown❑ Perforate ❑ Waiver ❑ Other Q Alter casing ❑ Repair well ❑ Plug Perforations ❑ Stimulate ❑ Time Extension ❑ Install Capillary Change approved program ❑ Pull Tubing ❑ Perforate New Pool ❑ Re -enter Suspended Well ❑ String 2. Operator Name: 4. Current Well Class: 5. Permit to Drill Number: Marathon Oil Company Development 0 Exploratory ❑ 209 - 016 3. Address: PO Box 1949 Stratigraphic ❑ Service ❑ 6. API Number: Kenai Alaska, 99611 -1949 50 - 133 - 20585 - 00 - S1 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 12 Kenai Beluga Unit 11 - 17x 9. Property Designation: '10. KB Elevation (ft): 11. Field /Pool(s): ADL - 022330 88' (21' AGL) Kenai Gas Field / Beluga & Upper 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): 8,055 7,919' 7,975' 7,839' NA NA Casing Length Size MD TVD Burst Collapse Structural Conductor 136' 20" 157' 157' 3,060 psi 1,500 psi Surface 1,555' 13 -318" 1,576' 1,575' 3,450 psi 1,950 psi Intermediate 5,565' 9 -518" 5,586' 5,450' 5,750 psi 3,090 psi Production 7,991' 3 -112" 8,012' 7,876' 10,160 psi 10,540 psi Liner Perforation Depth MD (ft): Perforation Depth TVD (ft): Tubing Size: Tubing Grade: Tubing MD (ft): 6,453' - 7,898' 6,317' - 7,762' Excape 3 -1/2" L -80 8,012' Capillary 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 0 Service ❑ 15. Estimated Date for 16. Well Status after proposed work: Commencing Operations: J 6 , 2009 Oil ❑ Gas SI 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 Michael D. Dammayer Title Production Engineer Signature Phone Date (907) 283 - 1333 June 22, 2009 ' COMMISSION USE ONLY Conditions of approval: Notify Commission so that a representative may witness Sundry Number: Soy- . j (,� Plug Integrity ❑ BOP Test Li Mechanical Integrity Test El Location Location Clearance Other: Subsequent Form Required: 1(vj -- L1-0 (t APPROVED BY Approved by: COMMISSIONER THE COMMISSION Date: 7/1/7 Form 10 -403 Revised 06/20 Q R I ❑ I NI, L ; '-' 1 RFL JUL 0 2 2009 Submit in Duplicate • 2008 Capillary String Installation p Y KBU 11 -17X Capillary String Install Pad 41 -18 WBS: Requested 6/19/09 Objective Install capillary string (3/8" 2205 0.049" WT) into well for delivering foamer to alleviate liquid loading. Procedure Capstring Set Depth: 7892' TVD at Set Depth: 7756' Coil length: 8000' Tag: 7907' (5/8/09) Installation Procedure: Disconnect power to wellhouse (call electrician) MI crane, manlift. Remove wellhouse. On site: 8,000' spool, Well Head Adapter — Long (WHA), Sundry, Work Permit, Well Control Standards Sheet. Install Capillary String (ISA): 1. MIRU BJ Dyna -Coil unit. Place liner around wellhead and truck. 2. Shut swab valve, pull tree -cap flange, remove OTIS blanking plug. 3. Replace plug with WHA (note o -ring). MU flange. Pressure test 1.5x SIWHP. 4. P/U Dyna -Coil injector with crane, run 3/8" string through injector. 5. Set Fluid Control Valve pressure = (Setting TVD 7,756')(0.433 psi/ft H20)(1.036 foamer SG) = 3,480 psi (use BHP as a safety factor). 6. MU BHA; run the 3/8" string through pack -off; attach BHA. 7. Perform "pull test" on BHA. 8. Thread pack -off assembly into 2 -7/8" female connection (a wrench or chain tongs may be needed to hold the adapter from turning). Wrap wellhead with absorbents to catch drips. 9. Configure tubing to pump foamer downhole while running in, or cap tubing end. 10. Set Rattiguns to running tightness, and pump up pressure on pack -off. 11. Open swab valve. 12. Adjust Rattiguns and pressure on pack -off as needed to minimize leaks. 13. RI TI to setting depth of 7,892'. 14. Set slips. Set Rattiguns; leave 1.5 times SIWHP on hydraulic pack -off. 15. Pull tubing excess through injector. 16. Cap tubing with a Swagelok cap and valve, pressure gauge, and filter. 17. Lockout Swab, Upper Master, and Lower Master as per Capstring Lockout Procedure. 18. Hookup injection line to CICM. NOTE: Start foamer at 1 gpd. 19. RDMO. Cleanup site. Sign -out. 20. 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 11-17x Permit #: 209 -016 API #: 50- 133 - 20585 -00 -S1 Pad 41 -18 Prop. Des: ADL - 022330 439' FNL, 420' FEL, MARATMON KB elevation: 88' (21' AGL) Sec 18, T4N, R11 W WBS #: DD.08.18948.CAP.DRL , S.M. Latitude: 60° 26' 38.035" N Conductor Longitude: 151° 04° 37.405' W 20" K55 133 ppf Top Bottom X. MD 0' 157' Y' TVD 0' 157' Spud: 2/15/2009 15:30 hrs TD: 3/29/2009 01:30 hrs Surface Casing Rig Released: 3/7/2009 12:00 hrs 13 -3/8" K -55 68 ppf Butt PA #: 891006367C Top Bottom MD 0' 1,576' TVD 0' 1,575' ---' 16" Hole Cmt w/ 410 sks (181 bbls) of 12.0 ill ppg, Type 1 cmt. 29 sks (40 bbls) cmt Top of 3 -1/2" Tubing Cement returned to surface with 100% returns. @ 4,423' MD r 0 Intermediate Casing ` 9 -5/8" L -80 40 ppf Butt Top Bottom MD 0' 5,586' I TVD 0' 5,450' %y 12 -1/4" Hole Cmt w/ 327 sks (193 bbls) of :rt, 10.5 ppg Class G Lead. Floats held. Lost 12 sks (7 bbls) during cementing process. P a" Chemical Injection Mandrels Tubing 3 -1/2" L -80 9.3 ppf EUE Mod @ 6,645° MD, opens @ 10,032 psi °.. Top Bottom & , $ MD 0' 8,012' 7,702' MD r ' TVD 0' 7,876' © 7,330' MD opens @ 9,742 psi (caliper 4/7/09) 8 -1/2" Hole Cmt w/ 1,132 sks (235 bbls) 15.8 ppg, Class G, 100% returns. . ; Excape System Details Excape System Details i ! - 13 Excape modules placed along Flappers MD (RKB): 0 ., 1 with 2 chemical injection mandrels Module 13 = 6.470' , " - Red contol line fires modules 7 - 13 Module 12 = 6,865' 1 ill 'k & chemical injection mandrel Module 11 = NA i 1 I ii - Green control line fires Modules 1 - 6 Module 10 = 7,026' l: & chemical injection mandrel Module 9 = 7,146' `. Beluga Perfs MD (RKB): Module 8 = 7,251' s' 1 5'� Module 13 = 6453' - 6463' Module 7 = NA I t ti Module 12 = 6848' - 6858' Module 6 - 8,040' I ili Module 11 = 6897' - 6907' Module 6 = 7,368' (caliper 4/7/09) 4 1 Module 10 = 7010' - 7020' Module 5 = 8,130' :r, Module 9 = 7128' - 7138' Module 4 = 8,480' }� !. � Module 8 = 7233' - 7243' Module 3 = 8,580' ' Module 7 = 7285' - 7295' Module 2 = 8,715' ,,` Module 6 = 7348' - 7358' Module 1 = NA k'. 1 Module 5 = 7393' - 7403" Tyonek Perfs MD (RKB): TD PBTD Module 4 = 7472' - 7482" 8,055' MD 7,975' MD Module 3 = 7602' - 7612" 7,919' TVD 7,838' TVD Module 2 = 7824' - 7834" Module 1 = 7888' - 7898" Well Name & Number: Kenai Beluga Unit 11 - 17x Lease: Kenai Gas Field I Municipality: Kenai Peninsula Borough State: Alaska 1 Country:1 USA Perforations (MD): 6,453' - 7,898' (TVD): 6,317' - 7,762' Angle /Perfs: - 0.7 ° Angle @ KOP and Depth: 1.9° / 100' from 2,00' - 3,200' MD Dated Completed: 4/14/2009 Completion Fluid: Revised by: Kevin Skiba Last Revison Date: 5/13/2009 Opening KBU 11 -17x Injection ,Iodule Page 1 of 1 Maunder, Thomas E (DOA) From: Maunder, Thomas E (DOA) Sent: Tuesday, June 02, 2009 1:57 PM To: 'Skiba, Kevin J.' Cc: Aubert, Winton G (DOA); Rang, Craig L.; Dammeyer, Michael D. Subject: RE: Opening KBU 11 -17x (209 -016) Injection Module Kevin, et al, Your understanding is correct regarding the need for a sundry. Establishing the flow path looks to be internal to the wellbore. Please be sure that this activity is covered on the 407 if not already submitted. If the 407 has been submitted, the work should be reported with a 404. Call or message with any questions. Tom Maunder, PE AOGCC From: Skiba, Kevin J. [mailto:kskiba @marathonoil.com] Sent: Monday, June 01, 2009 1:25 PM To: Maunder, Thomas E (DOA) Cc: Aubert, Winton G (DOA); Rang, Craig L.; Dammeyer, Michael D. Subject: Opening KBU 11 -17x Injection Module Tom, This email is a recap of our telephone conversation earlier with a few more details. Marathon would like to utilize foamer as a wellbore fluid removal aid in KBU 11 -17x well. KBU 11 -17x is designed with 2 chemical injection modules. These modules are opened up, into the casing, by setting off a perforating charges which are activated by pressuring up the tubing lines that return to surface. With some of our other wells, we have been able to utilize Excape module tubings as a pathway for routing foamer into the wellbore. If the Excape module tubing are plugged off in KBU 11 -17x, we would like to perforate these chemical injection modules to create a foamer pathway. It is my understanding that no sundry approval is required to perforate these modules. Marathon would need to submit a 10-404 when the work is completed. Please confirm or correct my understanding. Thanks, Kevin Skiba Regulatory Compliance Technician Marathon Oil Company Office (907) 283 -1371 Fax (907) 283 -1350 6/2/2009 • • Marathon Oil Company Alaska Asset Team I AA \ Marathon P.O. Box 1949 Kenai, AK 99611 MARATHON Oil Company Telephone 907/283 -1371 Fax 907/283 -1350 RECEIVED May 18, 2009 MAY 1 9 7089 Mr. Tom Maunder Alaska Oil & Gas Cons. Commission Alaska Oil & Gas Conservation Commission Anchorage 333 W 7 Ave Anchorage, Alaska 99501 Reference: 10 -407 Well Completion Report and Log Field: Kenai Gas Field Well: Kenai Beluga Unit 11 -17x Dear Mr. Maunder: Submitted for your records is the Well Completion Report and Log for KBU 11 -17x well. KBU 11 -17x is a new Excape well which was drilled into the Beluga and Tyonek formations. Work, on this well, was performed under Sundry #309 -095 and the original Permit to Drill #209 -016. Please contact me at (907) 283 -1371 if you have any questions or require additional information. Sincerely, i?-PUI a - 14)-411 Kevin J. Skiba Regulatory Technician Enclosures: 10 -407 Well Completion Report & Log cc: Houston Well File Reference Attachment List Kenai Well File KJS . 4 -feed RECEIVED STATE OF ALASKA Sb20 -0I ALAS OIL AND GAS CONSERVATION COMMIS ON 100 64' „r , MAY 1 9 2009 WELL COMPLETION OR RECOMPLETION REPOR A LOG Oil ❑ Gas 0 Plugged ❑ Abandoned ❑ Suspended ❑ 1b. Well Class: Alaska Oil & Gas Iaans, Commission 20AAC 25.105 20AAC 25.110 13 Excape Development El EMolvarial GINJ❑ WINJ WDSPL WAG Other No. of Completions: Modules Service ❑ StratigraphicTest LI 2. Operator Name: 5. Date Comp., Susp., or 12. Permit to Drill #: 209 - 016 Marathon Oil Company Aband.: 4/112009 Sundry #: 309 - 095 3. Address: PO Box 1949 6. Date Spudded: �i/ 13. API Number: Kenai Alaska, 99611 - 1949 2/112009 �/ 50 133 - 20585 - 00 - 00 4a. Location of Well (Governmental Section): 7. Date TD Rea ed: �jpa_ 14. Well Name and Number: Surface: 439' FNL, 420' FEL, Sec. 18, T4N, R11W, S.M. 3 Kenai Beluga Unit 11 - 17x Top of Productive Horizon: 8. KB (ft above MSL): 88' 15. Field /Pool(s): 760' FNL, 290' FWL, SEC 17, T4N, R11W, S.M. Ground (ft MSL): 67' Kenai Gas Field / Beluga & Upper Tyonek Total Depth: 9. Plug Back Depth(MD +TVD): Pools 760' FNL, 290' FWL, SEC 17, T4N, R11W, S.M. 7,975' 7,839' 4b. Location of Well (State Base Plane Coordinates, NAD 27): 10. Total Depth (MD + TVD): 16. Property Designation: Surface: x- 275,399.57 y- 2,356,287.72 Zone- 4 8,055' 7,919' ADL - 022330 TPI: x- 276,140.00 y- 2,355,837.00 Zone- 4 11. SSSV Depth (MD + TVD): 17. Land Use Permit: Total Depth: x- 276,140.00 y- 2,355,837.00 Zone- 4 NA 18. Directional Survey: Yes 0 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): Quad- Combo, MFT, CBL 22. CASING, LINER AND CEMENTING RECORD WT. PER SETTING DEPTH MD SETTING DEPTH TVD AMOUNT CASING GRADE TOP BOTTOM TOP BOTTOM HOLE SIZE CEMENTING RECORD FT PULLED 20" 113 K -55 0' 157' 0' 157' Driven NA NA 13 -3/8" 68 K -55 0' 1,576' 0' 1,575' 16" 410 sks, Type -1 29 sks 9 -5/8" 40 L -80 0' 5,586' 0' 5,450' 12 -1/4" 327 sks, Class G 0 sks 3 -1/2" 9.3 L -80 0' 8,012' 0' 7,876' 8 -1/2" 1,132 sks, Class G 0 sks 23. Open to production or injection? Yes 0 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" 8,012' NA 6,453'- 6,463' 6,317'- 6,327' 0.28" 6 spf 6,848' - 6,858' 6,712'- 6,722' 0.28" 6 spf 25. ACID, FRACTURE, CEMENT SQUEEZE, ETC. 6,897'- 6,907' 6,761' - 6,771' 0.28" 6 spf DEPTH INTERVAL (MD) AMOUNT AND KIND OF MATERIAL USED 7,010'- 7,020' 6,874'- 6,884' 0.28" 6 spf 6,453'- 6,463' 15,060# of 20/40 sand & 520# of Flex sand 7,128'- 7,138' 6,992'- 7,002' 0.28" 6 spf 6,848'- 6,858' 10,880# of 20/40 sand & 1,560# of Flex sand 7,233'- 7,243' 7,097'- 7,107' 0.28" 6 spf 6,897'- 7,020' 30,540# of 20/40 sand 7,285'- 7,295' 7,149'- 7,159' 0.28" 6 spf 7,128'- 7,138' 9,350# of 20/40 sand & 1,350# of Flex sand 7,348'- 7,358' 7,212'- 7,222' 0.28" 6 spf 7,233'- 7,243' 14,752# of 20/40 sand & 2,098# of Flex sand 7,393'- 7,403' 7,257' - 7,267' 0.28" 6 spf 7,285'- 7,358' 31,140# of 20/40 sand & 4,440# of Flex sand 7,472'- 7,482' 7,336'- 7,346' 0.28" 6 spf 7,393'- 7,403' 16,870# of 20/40 sand & 2,400# of Flex sand 7,602'- 7,612' 7,466'- 7,476' 0.28" 6 spf 7,472'- 7,482' 10,300# of 20/40 sand & 1,470# of Flex sand 7,824'- 7,834' 7,688'- 7,698' 0.28" 6 spf 7,602'- 7,612' 9,665# of 20/40 sand 7,888'- 7,898' 7,752'- 7,762' 0.28" 6 spf 7,824'- 7,834' 17,480# of 20/40 sand & 2,490# of Flex sand 7,888'- 7,898' 19,000# of 20/40 sand & 2,700# of Flex sand 26. PRODUCTION TEST Date First Production: 4/18/2009 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: 5/4/2009 24 Test Period - 0 2,650 34 64/64 100% gas Flow Tubing Casing Press: Calculated Oil -Bbl: Gas -MCF: Water -Bbl: Oil Gravity - API (corr): Press. 661 24 24 -Hour Rate - 0 2,650 34 NA 27. CORE DATA Conventional Core(s) Acquired? Yes ❑ No 111 Sidewall Cores Acquired? Yes ❑ No 0 If Yes to either question, list formations and intervals cored (MD +TVD of top and bottom of each), and summarize lithology and presence of oil, gas or water 7 . ' „.11001 (submit separate sheets with this form, if needed). Submit detailed descriptions, core chips, photographs and labor t analytical results per 20 AAC 25.071. S REIENS F. MAY 2 I. 2009 ' / Form I u -4u rrtevlsea 2/200 i CON rOERii GIN A L ' .., ` 28. GEOLOGIC MARKERS (List all formations and mip encountered): 29. FORMATION TESTS NAME MD TVD Well tested? HYes UN If yes, list intervals and formations tested, briefly summarizing test results. Attach separate sheets to this form, if needed, and submit Permafrost - Top detailed test information per 20 AAC 25.071. Permafrost - Base M. Beluga 5,600' 5,460' L. Beluga 6,335' 6,200' Tyonek 7,440' 7,303' 72 -8 7,463' 7,330' 73 -1 7,513' 7,378' 75 -8 7,760' 7,628' 76 -7 7,870' 7,730' Formation at total depth: 76 -7 8,055' 7,920' 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: Kevin J. Skiba Title: Regulatory Technician • Signature: - ' , , • Phone: (907) 283 -1371 Date: May 18, 2009 c y, INSTRUCTIONS General: This form is designed for submitting a complete and correct well completion report and log on all types of lands and leases in Alaska. Submit a well schematic diagram with each 10 -407 well completion report and 10 -404 well sundry report when the downhole well design is changed. Item la: Classification of Service wells: Gas Injection, Water Injection, Water - Alternating -Gas Injection, Salt Water Disposal, Water Supply for Injection, Observation, or Other. Multiple completion is defined as a well producing from more than one pool with production from each pool completely segregated. Each segregated pool is a completion. Item 4b: TPI (Top of Producing Interval). Item 8: The Kelly Bushing and Ground Level elevations in feet above mean sea level. Use same as reference for depth measurements given in other spaces on this form and in any attachments. Item 13: The API number reported to AOGCC must be 14 digits (ex: 50- 029 - 20123- 00 -00). Item 20: Report true vertical thickness of permafrost in Box 20. Provide MD and TVD for the top and base of permafrost in Box 28. Item 22: Attached supplemental records for this well should show the details of any multiple stage cementing and the location of the cementing tool. Item 23: If this well is completed for separate production from more than one interval (multiple completion), so state in item 1, and in item 23 show the producing intervals for only the interval reported in item 26. (Submit a separate form for each additional interval to be separately produced, showing the data pertinent to such interval). Item 26: Method of Operation: Flowing, Gas Lift, Rod Pump, Hydraulic Pump, Submersible, Water Injection, Gas Injection, Shut -in, or Other (explain). Item 27: Provide a listing of intervals cored and the corresponding formations, and a brief description in this box. Submit detailed description and analytical laboratory information required by 20 AAC 25.071. Item 29: Provide a listing of intervals tested and the corresponding formation, and a brief summary in this box. Submit detailed test and analytical laboratory information required by 20 AAC 25.071. Form 10 -407 Revised 2/2007 • KBU 11 -17x Kenai Gas Field Attachment List End of Well Report Well Schematic Directional Survey Operations Summary Logs • Array Induction Vectar Processing MD (1- 30 -09) • Array Induction Shallow Focussed MD (1- 30 -09) • Array Induction Shallow Focussed TVD (1- 30 -09) • Photo Density Dual Spaced Neutron MD (1- 30/09) • Hole Volume Caliper MD (1- 30 -09) • Quad -Combo Log MD (1- 30 -09) • Compensated Sonic MD (1- 30 -09) • Density Neutron Sonic Water Saturation • Formation Tester Log MD (1 of 2) • Formation Tester Log MD (2 of 2) • Dual Radial Gamma / CCL Cement Bond Log Compact Disc • Directional Survey • Wireline Log Data • Mud Log Data • Cement Bond Log Data • M Marathon Operations Summary Report MARANON Oil Company Well Name: KENAI BELUGA UNIT 11 -17X Qtr/Qtr, Block, Sec, Town, Range Field Name License No. State /Province Country SEC 18 T 4N R 11W KENAI 209016 ALASKA USA Casing Flange Elevation (ft) Ground Elevation (ft) KB- Casing Flange Distance (ft) KB- Ground Distance (ft) Spud Date Rig Release Date 67.00 21.00 2/15/2009 Daily Operations Report Date: 2/13/2009 Job Category: DRILLING 24 Hr Summary MIRU Ops Trouble 1 Start Time End Time Dur(hrs) Ops Code Activity Code Status Code Comment 06:00 12:00 6.00 MOB RIG AF PJSM w/ Weaver Bros: R/D & load out welding shop. Load out Epoch shack, mud boat, sub base, mud pits & pump room. Remove trip tank & move BOP stack. 12:00 17:00 5.00 MOB RIG AF PTSM: Lower sub base (legs iced up) & prep to move. Load out and move boiler house, generator house & water house. R/D all camp trailers. Load out and move. 17.00 00:00 7.00 MOB RIG AF Set boiler house, generator house, water house, mud pits & pump room (pull together). Set & scope up sub base. Set mud boat & carrier. Fold down wings on sub. Set catwalk. Plug in pits & pump room. Fuel rig generator. Install handrails in pump room & pits. Set exterior lights, trip tank & stand, mechanic shop & stairs, all camp trailers. R/U camp trailers & fill up camp water. Unload trailers. 00:00 04:30 4.50 MOB RIG AF PTSM: Spot & level carrier. Pull wires from pump room to generator house. Install turnbuckles & prep derrick to raise. Run water line to rig & fill water tank. 04:30 06:00 1.50 MOB RIG AF PJSM. Crane up derrick house. PJSM. Raise derrick. Set fuel tank. Set wind walls on carrier. Report Date: 2/14/2009 Job Category: DRILLING 24 Hr Summary Rig up rig. Ops Trouble Start Time End Time Dur(hrs) Ops Code Activity Code Status Code Comment 06:00 12:00 6.00 RURD RIG AF Crane in grey iron, stairs, landings, choke house, dog house, flow line, and gas buster. Spot shock hose for pumps. R/U pop -offs. Take on fuel. R/U welding shop. R/U dresser sleeves. Crane in V -door. 12:00 13:00 1.00 SAFETY MTG AF Weekly safety meeting with both drilling crews. 13:00 18:00 5.00 RURD RIG AF PJSM. Set stairs, panic line, floor plates, back wind walls, and cuttings tank. Set centrifuge unit. Plug in carrier, doghouse & choke house. Fill & start up boiler. Install U -tube & choke line to degasser. Unload trailers. 18:00 00:00 6.00 RURD RIG AF PJSM: Scope up derrick. Install carrier bows & tarps. R/U utility lines & drillers console. Install beaver slide & stairs to BOP connex. Dress pumps 1 & 2. Dress shakers w/ 165 mesh screens. Install mud pump pop -offs. Get steam to rig. Work on centrifuge unit. Set matting boards for mud pump #3. 00:00 06:00 6.00 RURD RIG AF PJSM: R/U shock hoses. Install tarps on derrick base, cylinder socks, cellar grating & manual trip tank guage. R/U torque tube. Install T -bar & turnbuckles, and adjust torque tube. Fill water & air lines around rig. Plumb in centrifuge module & install exterior lights. Report Date: 2/15/2009 Job Category: DRILLING 24 Hr Summary Finish rigging up GD -1 over slot KBU 11 -17X. Install starter head & test to 500 psi f/ 10 min (ok). N/U diverter system & function test (ok). Rack 5" drill pipe on pipe racks. Notified Jeff Jones - AOGCC for diverter test on 2/13/2009 @ 21:00 hrs. 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: Hang top drive. R/U top drive service loop and kelly hose. Change saver sub and grabber dies. Instal bales and elevators. Set pump house#3. R/U pop -off, suction line and service lines for pump house #3. R/U manual DP tongs and DP spinners. Spot Epoch mud loggers unit and Baker MWD unit. Test run top drive and mud pumps #1 and Q. P/U to drill floor DP slips, sub rack, and DP safety valves. 12:00 16:30 4.50 RURD RIG AF PJSM: R/U derrick board. Thaw cellar. Install choke line. R/U bleeder lines. Troubleshoot & repair carrier engine #1 transmission shifter. R/U Koomey lines to sub base. Mixing spud mud. 16:30 21:00 4.50 NUND BOPE AF PJSM: Cut & dress 20" conductor. Weld out T nipple for kill line. Install starter head &test to 500 psi f/ 10 min. 21:00 04:30 7.50 NUND BOPE AF PJSM: N/U diverter stack. R/U kill line & flow line adapter. N/U bell nipple. R/U fill up & bleeder line, trip tank, flow lines &turnbuckles. Install knife valve & koomey lines. Install 16" diverter line & chain down. Finish mixing mud. Set pipe racks. www.peloton.com Report Printed: 3/17/2009 1 • M arathon Operations Summary Report r +u► - N IM B all Company Well Name: KENAI BELUGA UNIT 11 -17X Casing Flange Elevation (ft) Ground Elevation (ft) KB- Casing Flange Distance (ft) KB- Ground Distance (ft) Spud Date Rig Release Date 67.00 21.00 2/15/2009 Casing Flange Elevation (ft) Ground Elevation (ft) KB- Casing Flange Distance (ft) KB- Ground Distance (ft) Spud Date Rig Release Date 67.00 21.00 2/15/22009 Ops Trouble Start Time End Time Dur(hrs) Ops Code Activity Code Status Code Comment 04:30 05:30 1.00 TEST ROPE AF Function test diverter & test Koomey performance (ok). 05:30 06:00 0.50 PULD DP AF PJSM: Rack 52 jts 5" drill pipe on pipe racks. R/U to P/U drill pipe. Daily Operations Report Date: 2/1612009 Job Category: DRILLING 24 Hr Summary P/U 16" bit and bit sub. Cleanout conductor F/22' to 65'. UD bit and bit sub. P/U 52 Jnts 5" DP and rack back. P/U 21 jnts HWDP and 6 3/4" jars and rack back. P/U 16" bit, motor, stabilizer, pony collar and clean conductor to 157'. Drill F/157' to 223'. Circ hole clean. POOH to 44'. P/U remaining directional BHA components & shock sub. Wash down f/ 154' -223'. Drill 16" surface hole f/ 223' -845'. Ops Trouble I Start Time End Time Dur (hrs) Ops Code Activity Code Status Code Comment 06:00 07:30 1.50 PULD BHA AF PJSM. P/U and M/U 16" bit and bit sub w /float for cleanout. RIH w /5" DP and tag @ 22'. 07:30 08:30 1.00 DRILL ROT AF Cleanout 20" conductor F/22' to 65'. 08:30 09:30 1.00 TRIP DP AF POOH and UD 16" bit and bit sub. Prep to P/U 5" DP on the rack. 09:30 12:00 2.50 PULD DP AF PJSM. P/U 52 jnts 5" DP and rack back in the derrick. 12:00 14:00 2.00 PULD DP AF PJSM. P/U 21 jnts 5" HWDP and 6 3/4" jars and rack back in the derrick. 14:00 15:30 1.50 PULD BHA AF PJSM. P/U and M/U 16" bit, motor, 15 3/4" stab, and pony monel collar 15:30 16:30 1.00 DRILL ROT AF Spud well at 15:30hrs 2/15/2009. Clean 20" conductor F/65' to 157'. 300- 400GPM, 300 -350 psi, 5ORPM, 1 -2K WOB. 16:30 18:00 1.50 DRILL ROT AF Drill 16" vertical hole F/157 to 223', 300- 400GPM, 300- 350psi, 5ORPM, 1 -2K WOB, ART= 1.1 hrs. 18:00 19:00 1.00 CIRC MUD AF CBU & cont circ until hole clean @ 410 gpm w/ 60 rpm's. Large amounts of gravel unloaded across shakers. 19:00 19:30 0.50 TRIP DP AF PJSM: POOH f /223' -44'. 19,30 21:00 1.50 PULD BHA AF P/U remaining directional BHA components: MWD, filter sub, (2) NM CSDP's, shock sub & (2) crossover subs. Scribe motor /MWD. 21:00 21:30 0.50 CIRC MUD AF Wash down f/ 154' -223'. 21.30 00:00 2.50 DRILL ROT AF Drill 16" vertical hole (1223' -392' @ 410 gpm, 750 psi, wob 5 -15 klb, 60 rpm, tq 1 kft -lbs, p/u 40 klb, s/o 40 klb, rot wt 40 klb. ART: 2.3 hrs. 00:00 06:00 6.00 DRILL ROT AF PJSM: Drill 16" vertical hole f/ 392'-845'@ 475 gpm, 1100 psi, wob 5 -20 klb, 75 rpm, tq 1 -2 kft-lbs, p/u 55 klb, s/o 55 klb, rot wt 55 klb, ART: 3.6 hrs, AST: 0.5 hrs. Report Date: 2/17/2009 Job Category: DRILLING 24 Hr Summary Drill 16" hole F/845'to 1588'. Pump sweep and circ. the shakers clean. POOH to the CSG shoe. RIH to 1570'. Wash down to 1588'. Pump hi -vis sweep & can't circ until hole clean. Monitor well (ok). Pump dry job & POOH. UD BHA. Clean rig floor. R/U to run 13 -3/8" csg. Ops Trouble I Start Time End Time Dur (hrs) Ops Code Activity Cade Status Code Comment 06:00 10:30 4.50 DRILL ROT AF Drill 16" vertical hole F/845'to 1160' . ART= 2.Bhrs AST =.4 hrs. 600GPM, 1600psi, 75RPM, 3K Ft-lb TQ. 10:30 12:00 1.50 DRILL ROT AF Drill 16" vertical hole F/1160'to 1257'. Control drill w /450GPM due to pump#1 being taken out of service for an emergency gear lube change. ART= 1.0hrs, P/U 65K, 6/0 65K, Rot 65K, 1 -2K Ft-lb TO, 900psi, 8ORPM, 3K Ft-lb TQ. 12:00 17:00 5.00 DRILL ROT 'AF Drill 16" vertical hole F /1257'to 1588 . Control drill w /450GPM due to pump#1 being taken out of service for an emergency gear tube change. ART= 3.7hrs AST= .3hrs, F /U73K, S /073K, Rot73K, 450GPM, 1100psi,1 -2K11-IbTQ, 8ORPM, 1 -2K Ft-lb TQ. 17:00 19:00 2.00 CIRC MUD AF Pump 40 bbl hi -vis sweep w/ nut plug & cont circ until shakers clean. (CEUX2) 450GPM, 800psi ,80RPM. Saw nut plug at shakers 1000 strokes early. 19:00 21:00 2.00 TRIP WIPR AF PJSM: POOH f/ 1588' -150' w/ SLM for wiper trip. No depth corrections. No tight spots. Hole slick. 21:00 22:00 1.00 TRIP WIPR AF PJSM: RIH f/ 150'- 1570'. Wash down f/ 1570'- 1588'. No fill on bottom. No ledges. Hole in good shape. 22:00 00:00 2.00 CIRC MUD AF Pump 40 bbl hi -vis sweep w/ nut plug & circ until hole clean @ 450 gpm & 80 rpm's. Nut plug returned to surface 600 strokes early. Monitor well (static). Pump dry job. 00:00 02:00 2.00 TRIP DP AF PJSM: POOH f/ 1588' -154'. No tight spots. Hole slick. 02:00 03:00 1.00 PULD BHA AF PJSM: UD shock sub & (2) crossovers. Rack back std NMDCs. UD filter sub, MWD, NM X/0, pony collar, string stab, mud motor & bit. Note: Seals in cone #3 still effective but not very tight. Would not recommend rerunning bit. 03:00 03:30 0.50 CLEAN RIG AF Blow down mud lines. Clear & clean rig floor. www.peloton.com Report Printed: 3/17/2009 1 � M arathon Operations Summary Report Na aarxart , Oil Company Well Name: KENAI BELUGA UNIT 11 -17X Casing Flange Elevation (ft) Ground Elevation (ft) KB- Casing Flange Distance (ft) KB- Ground Distance (ft) Spud Gate Rig Release Date 67.00 21.00 2/15/2009 4130/2009 Ops Trouble Start Time End Time Dur(hrs) Ops Code Activity Code Status Code Comment 03:30 06:00 2.50 RURD CSG AF Rig up to run 13 -3/8" casing. C/O bails & elevators. R/D spinners. Switch rig tongs. Daily Operations Report Date: 2/18,2009 Job Category: DRILLING 24 Hr Summary R/U to run 13 -38" csg. Run 34 jts 13 -3/8" 68 # K -55 csg to 1576'. R/U & RIH w/ 5" inner cmt string to 1536'. Stab -in & circ. Cmt 13 -3/8" csg in place. R/D cmt equipment. Sting out. UD 2 pups & 2 jts DP. Install wiper plug & sponge ball. CBU. Flush stack & mud lines. POOH & UD stinger assy. RID false rotary. Lift stack. Make rough cut on 13 -38" csg. N/D diverter system. Remove starter head. Cut 20" csg. Ops Trouble Start Time End Time Dur(hrs) Ops Code Activity Code Status Code Comment 06:00 06:30 0.50 RURD CSG AF Cont. to R/U CSG tools. 06:30 07:00 0.50 SAFETY MTG AF Pre -job safety meeting for running 13 3/8" CSG. Discuss JSA for running casing. 07:00 08:00 1.00 RUN CSG AF M/U 13 3/8" shoe track and bakerlok. Test floats(OK). 08:00 11:00 3.00 RUN CSG AF Run 13 38" 68PPF K -55 Butt CSG (total 34jnts). Shoe @ 1576' and float collar @ 1536'. P/U 110K 5/0 85K. Land CSG out on base plate. 11:00 '13:00 2.00 RUN CSG AF Change to short bales and DP elevators. R/U false rotary for running 5" DP inner string. 13:00 15:30 2.50 RUN CSG AF M/U stab -in sub on a 5' pup joint. Attach 5" DP centralizer on first tool joint. RIH w/5" DP. Space out and stab into float collar @ 1536'. 15:30 16:30 1.00 CIRC MUD 'AF Circulate CSG @ 200GPM 180 psi. PJSM for cementing. 16:30 18:00 1.50 PUMP CMT AF Pump 40bbls 8.4ppg spacer w /rig pumps. Mix and pump 410SXS Type 1 cement W/22% LW -6, 20% MPA -1, 2% CaCI, 1% SMS, .3% CD -32, .05% Static Free, .4% KCL, 1 ghs FP -6L to yield 181 bbls 12 ppg slurry. Displace w/23bbls 9.3ppg mud. 29bbls cement to surface w/100% returns during job. CIP @ 18:00hrs. Bleed off cmt line & check floats (ok). 18:00 18:30 0.50 PUMP CMT AF R/D circ head. Sting -out of float collar. P00H f/ 1536' -1460' while UD 2 pups & 2 singles 5" dp. Install wiper dart into dp box & sponge ball into top drive pin. Install 13 -38" circ nipple. 18:30 19:30 1.00 CIRC MUD AF Circ 1 annular volume @ 158 gpm. No cmt returns. 19:30 20:00 0.50 PUMP TRET AF Flush stack & mud lines with retarded water. 20:00 21:30 1.50 TRIP DP AF POOH f/146D' -5'. UD 5' pup, centralizer & stab -in tool. Flush overhead lines in pits. 21:30 00:00 2.50 WAITON CMT AF WOC while: Blow down mud lines. Clean & organize rig floor. Flush #3 mud pump. Change oil in carrier #2 engine. Rinse hanson tank. 00:00 02:00 2.00 NUND BOPE AF PJSM. N/D diverter line, knife valve & hydraulic control lines. RID bleeder, fill up & trip tank lines. R/D turnbuckles & trip tank actuator valve. Hotbolt diverter stack & prep to raise. Empty & clean pits. 02:00 03:00 1.00 NUND ROPE AF Lift stack, make rough cut on 13-3/8" csg & UD stump. Change oil in carrier engine #1. 03:00 04:00 1.00 NUND BOPE AF N/D bell nipple, flow line extention & diverter stack. Move out stack. 04:00 06:00 2.00 NUND ROPE AF PJSM: Remove starter head & cut 20 ". Make final cut on 13-3/8" csg. Report Date: 2/19/2009 Job Category: DRILLING 24 Hr Summary Final cut 13 38" CSG. Install wellhead. N/U spacer spool. N/U BOPE.Test BOP, Test 13-3/8 csg to 1500 psi f/ 30 min. no leaks.Slip drlg. line, Serv. rig, P/U 5" DIP. Ops Trouble Start Time End Time Dur(hrs) Ops Code Activity Code Status Code Comment 06:00 08:30 2.50 NUND WLHD AF Make final cut on 13 38" CSG and dress cut. 08:30 11:30 3.00 NUND WLHD AF PJSM. Install Vetco 13 38" sliploc bottom X 13 5/8" S000psi flg top multibowl wellhead. Test to 1500psi /10min. CIO clutch discs and friction plates and shim same on drawworks clutch. Fill pits 1 and 2 with used 9.5ppg flopro mud F /storage tanks. 11:30 13:00 1.50 NUND BOPE AF PJSM. Spot BOP stack near sub base. N/U 13 58" 5M X 36" spacer spool. Instal flow line extension. 13:00 18:00 5.00 NUND BOPE AF PJSM. N/U S,Rd,A 13 58" 5M BOP stack. N/U kill and choke lines. Complete electrical and plumbing on centrifuge unit. 18:00 19:30 1.50 NUND BOPE TA MSFB PJSM. Repair flowline adapter. www.peloton.com Report Printed: 3/172009 1 ! ,� Marathon Operations Summary Report t .r r y.1j Oil Company Well Name: KENAI BELUGA UNIT 11 -17X Ops Trouble I Start Time End Time Dur (hrs) Ops Code Activity Code Status Code Comment 19:30 22:30 3.00 TEST BOPE AF Test 2 7/8" X 5 1/2" 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 250I3000psi . Tested all gas alarms and PVT system. Performed koomey performance test. Test witnessed waived by Jim Regg @1200 hrs. 2/17/09, 250 psi low, 3000 psi high ram test, 250 psi low, 2500 psi high Annular test. All test held 5 min. 19:00hrs Begin to run centrifuge to reduce 9.5ppg mud from storage tanks. Centrifuge output mud wt 9.1 ppg. /3 0 23:00 0.50 RUNPUL WBSH AF PJSM; Install wear bushing, ID =12 3/6 ID. 00 00:00 1.00 TEST CSG AF PJSM; R/U and test 13 3/8 csg., 1500 psi f/ 30 min.No leaks. 00 00:30 0.50 TEST CSG AF PJSM; RID test equip., blow down top drive and mud lines. 30 01:30 1.00 SLPCUT DUN AF PJSM; Slip 33' drilling line onto drum, reset crown -o- matic. 30 02:00 0.50 SERVIC RIG AF PJSM; Service rig and equip., grease crown. 02:00 06:00 4.00 PULD DP AF PJSM; Pick up and drift 5 "- 19.5# S -135 4 1/2" IF drill pipe, stand back in derrick. (48)joints. Daily Operations Report Date: 2/20/2009 Job Category: DRILLING 24 Hr Summary P/U 5" DP. P/U Bit and BHA. RIH W /5" DP. Drill shoe track and shoe @ 1576'. Clean old hole to 1588'. Drill new hole to 1608'.Displace to Flopro mud. Perform FIT to 13ppg. Drill F/1608'- 2443' Ops Trouble Start Time End Time Dur(hrs) Ops Code Activity Code Status Code Comment :00 09:30 3.50 PULD DP AF Cont. to P/U 5" DP(total 108jnts). :30 10:30 1.00 PULD BHA AF PJSM. Layout BHA. Shovel snow and spread sand. :30 12:00 1.50 PULD BHA AF PJSM. P/U 12 1/4" bit and BHA. :00 13:30 1.50 PULD BHA AF PJSM. Cont. to P/U BHA. Dress threads on monel X/0 below CSDP. :30 14:00 0.50 TRIP DP AF RIH w /5" HWDP. Test MWD. Cont. RIH w /5" DP. Wash last 60' down and tag cement @ 1529'. 14:00 15:30 1.50 DRILL CMT AF Drill FC @ 1536'. Drill cement and shoe @ 1576'. Clean old hole to 1588'. 15:30 16:00 0.50 DRILL ROT AF Drill new hole F/1588'to 1608'. 16:00 16:30 0.50 CIRC MUD AF Displace hole w/9.0ppg Flopro mud. 16:30 17:30 1.00 TEST LOT AF Perform fit test to 13PPG EMW(TMD 1576', MW =9.0, Press= 330psi). 17:30 00:00 6.50 DRILL ROT AF Drill vertical 12 1/4 hole section f/ 1608'- 2022' P/U wt.80klbs S/O 80klbs Rt. Wt. 80klbs. Tq. 1 -2 ft-lb 410gpm 700psi. 7- 10wob. 70rpm. Static losses to hole 0 Dynamic losses 0 bbls per hr. Ast= 0 hr Art = 4.7hr. Max gas =16 UNITS 00:00 06:00 6.00 DRILL ROT AF 'Drill 12 1/4 build section f/ 2022'- 2443 ' P/U wt.90klbs 5/0 90klbs Rt. Wt. 90klbs. Tq. 2 -3 ft-lb 450gpm 800psi. 7- 15wob. 70rpm. Static losses to hole 0 Dynamic losses 0 bbls per hr. Ast= 1.0hr Art = 2.2hr. Max gas =16 UNITS Report Date: 2/21/2009 Job Category: DRILLING 24 Hr Summary Drill F/2443'to 3643 ", Circ. Hi -visc. sweep, check flow, POOH to shoe at 1500', Serv. rig, RIH t /3582'wash down to 3643', drill f /3643'to 3770' Ops Trouble 1 Start Time End Time Dur(hrs) Ops Code Activity Code Status Code Comment 06:00 12:00 6.00 DRILL ROT AF Drill 12 1/4" build section F/2443'to 2848'. ART= 1.4hrs AST= 2.2hrs P/U 98K S/0 95K Rot 95K 400- 450GPM 850psi- 950psi 8ORPM 5 -15W0B TQ3 -4K Ft-lb. Static losses 1.5 -2BPH. 12:00 22:30 10.50 DRILL ROT AF PJSM. Drill 12 1/4" build section F/2848'to 3643'. ART= 5.6hrs AST= 1.5hrs P/U 115K S/0 105K Rot 110K 385- 430GPM 850- 1000psi BORPM 5 -15WOB TQ 2 -3K Ft-lb. Static losses 1.5 -2BPH. 22:30 00:00 1.50 CIRC MUD AF PJSM; Circ. hole clean for wiper trip to shoe, pump 40 bbl. Hi -visc. sweep. Sweep brought back minimal cuttings. 00:00 01:00 1.00 TRIP WIPR AF PJSM; Check flow static losses 1.5BPH, pull 5 stands, pump dry job. 01:00 02:00 1.00 TRIP WIPR AF PJSM; POOH to shoe at 1576' for wiper trip.No issues hole slick. No gains no losses. 02:00 03:00 1.00 SERVIC RIG AF PJSM; Blow down top drive, service rig and equip., change gear tube in right angle drive on carrier, fix hyd. leak on red tugger. 03:00 04:30 1.50 TRIP WIPR AF PJSM; RIH to 3582' and wash down to 3643', no fill. 04:30 06:00 1.50 DRILL ROT AF PJSM.; Drill 12 1/4" build section F/3643' to 3770'. ART= 1.10hrs AST =Ohrs P/U 115K 3/0 105K Rot 11OK 385- 430GPM 850- 1000psi 8ORPM 5 -15W0B TO 2 -3K Ft-lb. Static losses 1.5- 2BPH.Max. Gas =17 units www.peloton.com Report Printed: 3/17/2009 • Marathon Operations Summary Report r um o r Company Well Name: KENAI BELUGA UNIT 11 -17X Daily Operations Report Date: 2)22/2009 Job Category: DRILLING 24 Hr Summary Drill F/3770' to 5130' Op Trouble Start Time End Time Dur(hrs) Ops Code Activity Code Status Code Comment 06:00 12:00 6.00 DRILL ROT AF Drill 12 1/4" drop section F/3770' to 4160. ART= 3.2hrs AST =.9hrs P/U 125K 3/0 110K Rot 120K 400- 440GPM 900- 1100psi 80 RPM 5 -15WOB T04 -5K Ft -lb. Static losses 3- 3.5BPH Dynamic losses 5 -10 BPH. 12:00 18:00 6.00 DRILL ROT AF PJSM. Drill 12 114" drop section F/4160' to 4529'. ART= 2.4hrs AST= 1.8hrs P/U 130K 8/0 115K Rot 125 K 430 GPM 1100 psi 80 RPM 15K WOB TO 4 -5K Ft-lb. Static losses 3.5 -4.0 BPH Dynamic losses 5 -10 BPH. 18:00 00:00 6.00 DRILL ROT AF PJSM. Drill 12 1/4" drop section F/4529' to 4870'. ART= 3.6hrs AST= 1.9hrs P/U 140K 8/0 120K Rot 132 K 430 GPM 1100 psi 80 RPM 15K WOB TO 4 -5K Ft-lb. Static losses 2 -3 BPH Dynamic losses 5 -10 BPH.Max.= 60 units. 00:00 06:00 6.00 DRILL ROT AF PJSM. Drill 12 1/4" drop section F/4870' to 5130'. ART= 1.8hrs AST= 2.4hrs P/U 150K S/0 125K Rot 152 K 430 GPM 1100 psi 80 RPM 15K WOB TO 4 -5K Ft-lb. Static losses 2 -3 BPH Dynamic losses 5 -10 BPH.Max.= 95 units. Report Date: 2/23/2009 Job Category: DRILLING 24 Hr Summary Drill F/5130' to 5500'. Circ B/U for samples. Drill F/5500' to 5600'., Pump hi visc. sweep,CBU 2X, Ck. flow, POOH, sery rig, RIH, Pump hi visc sweep,CBU. Ops Trouble Start Time End Time Dur (hrs) Ops Code Activity Code Status Code Comment 06:00 12:00 6.00 DRILL ROT AF Drill 12 1/4" drop section F/5130' to 5370' . ART= 4.6hrs AST= 1.10hrs P/U 155 K 8/0 130 K Rot 140 K 430GPM 1350psi 80 RPM 20- 25KWOB TQ5 -6K Ft-lb. Static losses 4BPH Dynamic losses 5- 106PH. 12:00 15:00 3.00 DRILL ROT AF PJSM. Drill 12 1/4" vertical section F/5370 to 5500' . ART =2.1 hrs P/U 157 K 3/0 130 K Rot 145 K 430GPM 1350psi 80 RPM 20- 30KW0B TQ5 -6K Ft-lb. Static losses 4BPH Dynamic losses 5- 10BPH. 15:00 16:30 1.60 CIRC MUD AF Circ. samples @ 5500' 440GPM 1100psi 8ORPM. 16:30 18:30 2.00 DRILL ROT AF Drill 12 1/4" vertical section F/5500 to 5600' . ART= 1.30hrs P/U 157 K 8/0 130 K Rot 145 K 430GPM 1350psi 80 RPM 20- 30KWOB TQ5 -6K Ft-lb. Static losses 4BPH Dynamic losses 5- 10BPH. Increase lubricant to 3 %. Max. gas =95 units. 18:30 21:30 3.00 CIRC MUD AF Pump S0bbl Hi -vis sweep and Circ. shakers clean @ 5600'. 440GPM 8ORPM 1000psi Circ. 2 X bottoms up. 21:30 01:30 4.00 TRIP WIPR AF PJSM; Check flow, POOH 1/5600' to 1500', Hole slick no issues, Hole took 3.5 bbls. 01:30 02:30 1.00 SERVIC RIG AF PJSM; Service Top drive and carrier. 02:30 05:30 3.00 TRIP WIPR AF PJSM; RIH f/1600' to 5600',Wash and ream f/5417'- 5600', lost total of 10 bbls fluid during trip. 05:30 06:00 0.50 CIRC MUD AF Pump hi visc. sweep, circ. bottoms up. 440GPM, 80 RPM, 1170 psi. Report Date: 2/24/2009 Job Category: DRILLING 24 Hr Summary Pump a hi -vis pill and circ. the shakers clean. POOH to 4400'(multiple tight spots). RIH to 5600'. Wash last stand down. Circ. clean. POOH,UD BHA, Inspect monel connections, Pull wear ring, Change out pipe rams, R/U to run 9 5/8 csg. Ops Trouble Start Time End Time Dur(hrs) Ops Code Activity Code Status Code Comment 06:00 08:30 2.50 CIRC MUD AF Cont. to circ. clean 450GPM 8ORPM 1100psi. String LCM pill into active system while circ. Dynamic losses 3 -4BPH. Static losses 3BPH. 08:30 10:30 2.00 TRIP DP AF PJSM. POOH to 4400'(tight @ 5490', 5473', 5448', 5385', 5381', 5375', 5365', 5340', 5296', 5289', 5249', 5233', 5044', 4981', 4759). 10:30 11:30 1.00 TRIP DP AF RIH and tag up @ 5550'. Wash F/5550' to 5600'. 11:30 '12:30 1.00 CIRC MUD AF Circ. clean, 450GPM 8ORPM 1100psi. 12:30 13:30 1.00 TRIP DP AF PJSM; POOH to 4890'. Tight spot @ 5250(25K over) work tight spot. Cont. POOH. 13:30 19:00 5.50 TRIP DP AF Pump dry job and cont. POOH, No correction with SLM. 19:00 22:30 3.50 PULD BHA AF PJSM. Lay down 12 1/4" Directional assy., Inspect all connections, no bad thread issues.Well took 2 bbls. hr. on trip out. Losses 2BPH while POOH. 22:30 23:00 0.50 RUNPUL WBSH AF PJSM. Make up runnig tool and retrieve wear ring. inspect wer ring no unusual wear. 23:00 00:00 1.00 TEST WLHD AF PJSM; Pick up and check casing hanger. www.peloton.corn Report Printed: 3/17)2009 Marathon Operations Summary Report • • NA ,Oil Company Well Name: KENAI BELUGA UNIT 11 -17X Ops Trouble Start Time End Time Dur(hrs) Ops Code Activity Code Status Code Comment 00:00 01:00 1.00 NUND BOPE AF PJSM. Change out top set rams to 9 5/8" csg. ram. 01:00 02:00 1.00 TEST BOPE AF PJSM. Rig up and test 9 5/8" rams, 250 psi low, 3000 psi high, for 5 min., no leaks. Repair off driller side manridder. 02:00 06:00 4.00 RURD CSG AF PJSM. Swap out rig tongs, remove bails, and elavators, move torque tube back, rig up stabbing board, make up fill up tool. Losses 2BPH while R/U to run CSG. Daily Operations Report Date: 225/2009 Job Category: DRILLING 24 Hr Summary ,Cont. to R/U CSG tools. Bakerlok shoe track and check floats. Run 9 5/8" CSG., Wash down f/5554'- 5585',CBU,Pump cmt., R/D cmt hd.,R /U Rig floor f/ drill pipe, install pack -off f/ 9 518 csg. hanger. Ops Trouble Start Time End Time Dur(hrs) Ops Code Activity Code Status Code Comment 06:00 07:00 1.00 RURD CSG AF Cont. to R/U CSG tools. 07:00 07:30 0.50 SAFETY MTG AF Safety meeting for running casing. Review JSA and discuss hazards and how to mitigate the hazards. Review plan for running casing. 07:30 09:00 1.50 RUN CSG AF P/U and Bakerlok the shoe track. Engage circulating tool and circulate through the shoe track. Check floats(ok). 09:00 11:00 2.00 RUN CSG AF Cont. Run 9 5/8" 40PPF L -80 Butt CSG to 1550'(13 3/8" CSG shoe). 11:00 12:00 1.00 CIRC MUD AF Circ. CSG 2000PM. PJSM. 12:00 17:00 5.00 RUN CSG AF Cont. to Run 9 5/8" CSG to 5550. M/U 13 1/2" X 9 5/8" fluted hanger assy, running tool and landing joint. Tag bridge @ 5554'. 17:00 18:00 1.00 RUN CSG AF Engage Weatherford washdown tool and wash 9 5/8" CSG F/5554'to 5586' 200GPM 500- 745psi. Land CSG out on hanger(total 137jnts). UP 215K DN 155K Shoe @ 5586' and FC @5502'. Lost 5bbls mud while running CSG. 18:00 19:00 1.00 CIRC MUD AF Circ. CSG 2000PM 390psi.Circ. 1 1/2 times csg. volume. Lay down csg. slips, tongs, and tools. Install plugs in cmt. hd. 19:00 20:30 1.50 RURD CMT AF PJSM; With BJ cementers, lay down casing elevators, rig down La Fluer tool, blow down top drive and mud lines. rig up, make up cmt. lines. 20 30 00:00 3.50 PUMP CMT AF Pump 5 bbls. ahead, test lines to 3000 psi. Pump 20 bbls Sealbond spacer @ 10 ppg.,(Shut down drop bottom plug) Mix and pump 193 bbls. cement @10.5 ppg.(327 sacks G cement + 47%LW-6 + 15% BA -90 + 1% CD -32 +1.2% FL -63 + 0.5% SMS + 0.05% Static free + 1 ghs FP -6L) Drop top plug pump 5 bbls. water, displace with rig pump. Pump 416 bbls mud, bump plug, pressure 1000 psi over circ pressure, 1430 psi, hold 5 min. bleed off and check floats. Floats held. CIP at 2340 hrs. Lost 7 bbls. during cement job. 00:00 01:00 1.00 RURD CMT AF PJSM; Rig down cmt. lines, blow down mud lines, 01 00 05:00 4.00 RURD CSG AF PJSM; Rig down csg. tools, rig up for drill pipe, adjust top drive rail, install pack -off for 9 5/8 csg. hanger.Test to 6000 psi did not hold. Pull pack off change out seals. Install pack off, retest to 5000 psi held for 10 min. no leaks. 05:00 06:00 1.00 NUND BOPE AF PJSM; Change bails on top drive, change 9 5/8 rams to 2 7/8 x 5 1/2 varible rams. Report Date: 2/26/2009 Job Category: DRILLING 24 Hr Summary Test BOPE,set wear ring, adjust top drive rail, M/U BHA, Measure and P/U 68 jts.5" Drill pipe, Test csg. to 1500 psi f/30 min., Drill out shoe track,Drill f/5600- 5620',CBU, FIT test to 12# EMW, Drill f/5620' -5725' Ops Trouble Start Time End Time Dur(hrs) Ops Code Activity Code Status Code Comment 06:00 08:00 2.00 RURD OTHR AF Set Tongs and Drillpipe spinners .Rig up floor 08:00 09:30 1.50 NUND BOPE AF Change Out 9 5/8 casing rams to 2 7/8X 5" variable rams. Shell test doors. 09:30 14:00 4.50 TEST ROPE AF PJSM; Make Up test joint set test plug.Test BOPE and at related componants 250/3000psi/ 5min test. Test lel and H2s alarms and lights. Test PVT and Flow alarms. Preform accumulator drawdown test. Note 2 7/8" x 5" variable rams failed test replace pack off rubbers and re -test Rams . Test Good. Blow down lines . Rig down test joint. 14:00 14:30 0.50 RUNPUL WBSH AF Make up wear bushing tool, set wear bushing. 14:30 15:00 0.50 REPAIR RIG AF Adjust torque tube to center top drive over well center 15:00 18:00 3.00 PULD BHA AF PJSM; Pick up and make up BHA #4 8 1/2 bit Motor, Stab, pony collar, MWD, 2x monels Xover 17 Hwdp, Jars and 4 HWDP. RIH pulse test MWD. 18:00 23:00 5.00 TRIP DP AF PJSM; RIH P/U drift 68Jts 5 " drillpipe. Continue RIH out of mast to 5380' 23:00 00:30 1.50 TEST CSG AF Circ. condition mud, Test csg.1500 psi for 30 min. No leak off.Blow down choke lines, and manifold. www.peloton.com Report Printed: 3/17/2009 • • M Marathon Operations Summary Report N �uraA h Oil Company Well Name: KENAI BELUGA UNIT 11 -17X Ops Trouble Start Time End Time Dur(hrs) Ops Code Activity Code Status Code Comment 00:30 02:30 2.00 DRILL CMT AF PJSM; RIH tag landing collar at 5500', drill out shoe track, Up wt. =150K Dn. wt.= 125K Drill 20' New hole for FIT test #5600 02:30 03:00 0.50 CIRC MUD AF Circ. bottoms up, pull one stand for FIT test to 5536'. 03:00 03:30 0.50 TEST LOT AF PJSM; Perform FIT test @5463' TVD with 9.5# mud, test pressure 711 psi, 12.0# EMW. 03:30 04:00 0.50 BLOWDN EQIP AF Blow down kill, choke line, and manifold. 04:00 04:30 0.50 TRIP DP AF PJSM;RIH f/5536' to 5620', Get drilling perameters, slow pump rate. 04:30 06:00 1.50 DRILL ROT AF Drill 8 1/2' hole f/5620'- 5725'Up wt. =160K Dn wt. =125K Rt wt. =140K Bit wt. =5 -9K, 6 -8K tq. 65 RPM No gains no losses. Daily Operations Report Date: 2/27/2009 Job Category: DRILLING 24 Hr Summary Drill Ahead, f/5725' -6925' CBU raise mud wt. f/9.4# to 9.7# POOH f/ wiper trip to shoe,5585' ,RIH, Drill f/6925' -6950' Ops Trouble Start Time End Time Dur(hrs) Ops Code Activity Code Status Code Comment 06:00 12:00 6.00 DRILL ROT AF Drill 8 1/2 production hole section f 5725' -6228' @ 525gpm 1550psi wob 8- 10k1b, 85rpm, tq 8 -9.5kft -Ibs ,p /u 165kIbs s/o 130kIbs, rt.wt.140kIbs. ART= 4.9hr AST =0 No Gain /loss. Run Centrifuge. Mud wt 9.4 Max gas 56units 12:00 21:30 9.50 DRILL ROT AF Drill 8 1/2 production hole section f 6228' -6925' @ 525gpm 2000psi wob 8- 10k1b, 82rpm, tq 8 -9.5kft -Ibs ,p /u 185kIbs s/o 130kIbs, rt.wt.163kIbs. ART= 6.4hr AST =0 No Gain /loss. Run Centrifuge. Mud wt 9.4 Max gas 270units 21:30 23:30 2.00 CIRC MUD AF PJSM; Circ. bottoms up for wiper trip, had from 190 to 270 units gas, change mud wt. from 9.4 #to 9.7 #. Circ. two bottoms up. 23:30 03:00 3.50 TRIP WIPR AF PJSM; Check well for flow, POOH f/ 6925' -6630' pull thru tight spots from 6630' to 6228'. Start backreaming and circ.out, all the way to shoe at 5585'.No gains No losses 03:00 04:00 1.00 SERVIC RIG AF PJSM; Serv. rig and top drive.Change hose on dennison pump. 04:00 05:00 1.00 TRIP WIPR AF PJSM; RIH t/8865', precautionary wash f- 6925- tag 7' of fill ,no gains no losses. Note : hole slick running back to bottom. 05:00 06:00 1.00 DRILL ROT AF Drill 8 112 production hole section f 6925' -6950' @ 525gpm 2000psi wob 8- 10k1b, 82rpm, tq 8 -9.5kft-Ibs ,p /u 185kIbs s/o 130kIbs, rt.wt.163kIbs. ART =.3 hr AST =0 No Gain /loss. Mud wt. =9.7# ECD = 10.3 EMW Report Date: 2/28/2009 Job Category: DRILLING 24 Hr Summary Drill Ahead f/69507700' Circ. up samples f/ GEO., Drill f17700' -7935' Circ. up samplesf/ GEO, 1675 units gas, increase MW to 10.3#Drill f/7935'- 8055', CBU, Wiper Trip. Ops Trouble Start Time End Time Dur(hrs) Ops Code Activity Code Status Code Comment 06:00 12:00 6.00 DRILL ROT AF Drill 8 1/2 production hole section f- 6950'- 7360'. @ 525gpm 1800psi wob 8- 12klbs 85rpm tq 9.5 -11 kft-Ibs. p/u 190kIbs, s/a 145kIbs, rt wt. 165kIbs ART= 4.5hrs AST= 0 No /Gain/ Loss Mud Wt 9.7 ECD = 10.5emw Max gas 877units from 7014' Background gas 100units. 12:00 17:00 5.00 DRILL ROT AF Drill 8 112 production section f-7360'-7700'@ 525gpm 1800psi wob 8- 14klbs 85rpm tq 10 -11 kft-Ibs p/u 200kIbs s/o 145kIbs. rt. wt. 173 ART =2.9 AST =0 No Gain Loss. Max gas 551 units from 7325' 17:00 17:30 0.50 CIRC MUD AF Circulate B/U for samples as per MOC geologist at 7700' 17:30 21:00 3.50 DRILL ROT AF Drill 8 1/2 production section f-7700'-7935'@ 525gpm 2200psi wob 8- 14klbs 85rpm tq 10 -11 kft-Ibs p/u 200kIbs s/o 145kIbs. it wt. 175 ART 3.1 AST =O No Gain Loss. Max gas 1675 units from 7920'. Conn. Gas= 7750'=248 units, 7814 =658 units, 7877=1600 units, 21:00 23:00 2.00 CIRC MUD AF PJSM; Increase mud wt. from 9.9 #to 10.3 #, Circ. bottoms up sample for MOC Geo.Increase mud wt. for increased conn. gas. 23:00 01:30 2.50 DRILL ROT AF Drill 8 1/2 production section f -7935' -8055' @ 525gpm 2200psi wob 8- 14klbs 85rpm tq 10 -11 kft-Ibs p/u 200kIbs s/o 145kfbs. rt. wt. 175 ART =1.2 AST =O No Gain Loss. Conn. gas = 7935 =1475 units, 8055 =1106 units. 01:30 03:30 2.00 CIRC MUD AF Circ.bottoms up for samples as per MOC geologist at 8055'. Bottoms up gas 371 units. 03:30 06:00 2.50 TRIP WIPR AF PJSM; Check for flow. POOH for wiper trip f/8055'- 6865'Pull pipe f 8055' to 7689', Back ream f -7689' -6865' Clean up tight hole and clays No gain /Loss www.peloton.com Report Printed: 3/17/2009 • Marathon Operations Summary Report Oil Company Well Name: KENAI BELUGA UNIT 11 -17X Daily Operations Report Date: 3/1/2009 Job Category: DRILLING 24 Hr Summary RIH 06927'- 7995', Hole slick, CBU, ©8055', Max. gas 3940 units, Shut in well circ. out gas, Wt. up mud to 10.7, POOH f/ logging, Hole slick, No gains No Iosses.R /U Loggers Ops Trouble Start Time End Time Dur(hrs) Ops Code Activity Code Status Code Comment 06:00 07:00 1.00 TRIP WIPR AF RIH ( wiper Trip ) f -6927' -7995' Precautionary wash from - 7995 -8055' Hole slick. No gains or losses. 07:00 08:00 1.00 CIRC MUD TA WC Circulate B/U at 8055' Pump 525gpm, Gas units increased from 350 to 3940 units 1000stks short of B/U Shut well in and circulate through Gas buster at 90spm 925psi after 1100stks stop circulating and shut well in. No pressure build in hole or drillpipe. Open annular and continue circulating at 120spm 1050psi. initial gas 1350units after 650stks gas units decreased to100units. Mud weight 10.3+ in and out 08:00 09:30 1.50 CIRC MUD TS WC Begin to increase mud weight from 10.3ppg to 10.5ppg Continue circulating until mud weight at10.5 ppg. B/U gas after weight up 45units 09:30 15:00 5.50 TRIP WIPR AF POH ( wiper Trip) f -8055' -5585' Pull pipe free from 8055' to 6907'. Back ream ,wash and clean up swollen clays from 6907' to 5825'. Pipe pulled clean f- 5825' to 5585'. Mud weight 10.5ppg 15:00 16:30 1.50 TRIP WIPR AF RIH ( wiper Trip) f -5585' to 7995' wash down f -5595' -8055' Hole clean no tight spots. No Gain loss 16:30 17:30 1.00 CIRC MUD AF Circulate and pump Hi -vis sweep at 8055' pump 525gpm 1800psi. Sweep returned at caculated hole volume with increase in cuttings. Max Gas on B/U 1143units. Note 1143 units after wiper trip of 7hours. 17:30 19:00 1.50 CIRC MUD AF Circulate and increase mud weight from 10.5+ to 10.7ppg 19:00 03:00 8.00 TRIP DP AF PJSM; Check well for flow, pump dry job, POOH 68055' -500', SLM out, Monitor well at csg. shoe, no gains no losses, Up wt. =200K Dn wt. =155K Rt wt. =175K SLM No correction 03:00 04:30 1.50 TRIP BHA AF PJSM; POOH lay down BHA break off bit. All connections appear to be free of any galling. 04:30 06:00 1.50 RURD ELEC AF PJSM; Safety Meeting ,Rig up Weatherford wireline, Run quad combo logs. Report Date: 3/2/2009 Job Category: DRILLING 24 Hr Summary Run Quad combo logs, RIH w/ 5" DIP to csg shoe 5570', Cut drlg. line, RIH to 8055', CBU 867 units gas,POOH to shoe at 5570', R/U Weatherford wireline, RIH to shoe w/ wireline,Wireline MFT as per Marathon geoligist. Ops Trouble Start Time End Time Dur(hrs) Ops Code Activity Code Status Code Comment 06:00 13:00 7.00 LOG OH AF Continue Running Weatherford wireline Quad -combo logging suite from 8055' to 5585' (open hole.) log inside casing from 5685- 1600'. Poh with quad combo tools and unload source,lay down tools. Note Logging tools ran to 8050' w/o any problems, hole clean 13:00 16:30 3.50 TRIP DP AF Make Mule shoe and rih to 5565' 16:30 18:00 1.50 CUT WIRE AF PJSM ; Slip and cut drilling line. 171'total, 18:00 19:30 1.50 TRIP DP AF PJSM; Cont. run in hole f/5570'to 7907', Strap, Pick up, drift, 5" drill pipe, RIH f17907' to 8055 ", wash down last 20', no fill. No gain or losses Hole slick. 19:30 20:30 1.00 CIRC MUD AF Circ. bottoms up, max gas 867 units.Pumping 546 GPM, 1200 psi.( Note gas units are from being off bottom for 24 hrs.) Mud weight 10.8 20:30 23:00 2.50 TRIP DP AF PJSM; Check for flow, pump dry job, POOH (/8055' -5570' Up wt. =200K Dn. wt.145K Hole slick no tight spots. No gains No losses. 23:00 00:00 1.00 RURD ELEC AF PJSM; With Weatherford logging crew, R/U Sheaves and lubricator, make up tools. 00:00 02:00 2.00 LOG OH AF RIH with MFT tools to 9 5/8 csg shoe at 5570' with E -Line. Wait on pick points. 02:00 06:00 4.00 LOG OH AF RIH to 8055' With MFT tools on E -line logs as per marathon geologist. first pressure at 7941'.Note : as of 0600hrs 10 attempts made with 4 successful tests Formation pressure at 7890' =10.81 EMW Report Date: 3/3/2009 Job Category: DRILLING 24 Hr Summary Run MFT, R/D loggers, POOH w/ 5" D /P, www.peloton.com Report Printed: 3/17/2009 • 1 ,�. Marathon Operations Summary Report r, An.�i Oil Company Well Name: KENAI BELUGA UNIT 11 -17X Ops Trouble Start Time End Time - Dur(hrs) Ops Code Activity Code Status Code Comment 06:00 02:30 20.50 TEST PBU AF Run MFT pressure build up tests. POH with mft tools on e line and clean up plugged pads. Run back in hole with MFT tools on e- line. Continue taking pressures from 7735' - 5567'(99 attempts made, 33 successful) 02:30 03:00 0.50 RURD ELEC AF _PJSM; Rig down Weaterford Wireline 03:00 06:00 3.00 TRIP DP AF PJSM; POOH f15567 With 5" drill pipe and mule shoe.End evaluation phase at 0600 hrs.Move to Completion phase. Well static, no gains, no losses. Daily Operations Report Date: 3/4/2009 Job Category: DRILLING 24 Hr Summary Make up 8 112 BHA, RIH, CBU, 1502 units gas, MW =10.9, Increase mud wt to 11.0 ppg POOH UD D /P, L/D BHA, R/D floor to run 3 1/2 csg., R/U to run 3 1/2 csg.,Test 2 7/8 -5 1/2 varible rams . Ops Trouble Start Time End Time Dur(hrs) Ops Code Activity Code Status Code Comment 06:00 06:30 0.50 TRIP BHA AF Make up 8 1/2 bit , bit sub with float HWDP and jars RIH 06:30 12:30 6.00 TRIP DP AF Continue RIH with Drill pipe Fill pipe at 2800', 5550' and 7990' Hole clean no tight spots. No gain or losses 12:30 15:00 2.50 CIRC MUD AF Circulate B/U @ 525gpm 1275psi 40rpm. Max B/U gas 1502units. after 37hrs from last b/u circulation. Note. At 5500 stks gas units at 565, at 6580stks 1000units At 8/U 7856stks 1502units. Mud weight 10.9+ In and out. Increase mud weight to 11.0 ppg in and out. Monitor well, Pump dry job 15:00 00:30 9.50 TRIP DP AF POH laying down drill pipe. Flush out each joint with H2O and dope thread protectors. Lay down hvy. wall, bit sub, and bit. No gains No losses. Hole slick no drag. 00:30 06:00 5.50 RURD CSG AF PJSM; rig down rig floor, change out bails, rig up to run 3 1/2 csg, Center rig over hole, Test 2 7/'8 -5 1/2 variable rams 2000 psi high, 250 psi low, 5 min each. Report Date: 3/5/2009 Job Category: DRILLING 24 Hr Summary Run 3 -1/2" Excape system to 8015'. CBU. R/U to run correlation log. Ops Trouble 1 Start Time End Time Dur (hrs) Ops Code Activity Code Status Code Comment 06:00 06:30 0.50 RUN CSG AF M/U 3 1/2" shoe track and check floats(0K). 06:30 12:00 5.50 RUN CSG 'AF Run 3 1/2" 9.3 L -80 8rd EUE casing Escape completion. 12:00 13:00 1.00 - RUN CSG AF PJSM w /crew coming on tour. Cont. to run 3 1/2" Escape completion (total 13 modules) 13:00 13:30 _ 0.50 CIRC MUD AF Circ. 1 CSG volume 4.5BPM 285 PSI. 13:30 14:00 0.50 SAFETY `DRIL AF PJSM /JSA for R/U air slips and discuss near miss with safety valve. 14:00 03:30 13.50 RUN CSG AF Con't RIH w/ 3 -1/2 ", 9.3 #, L -80, EUE Mod csg w/ 2 control lines & 1 sacrificial line. Ran 234 total jts. Circ 1 csg volume @ 9-5/8" shoe. 03:30 05:30 2.00 CIRC 'MUD AF CBU @ 5 bpm & 850 psi while slowly reciprocate pipe. P/U 95 klbs, 3/0 77 klbs. Bottoms up gas = 38 units. 05:30 06:00 0.50 RURD 'ELEC AF ' PJSM w/ Expro wireline crew: R/U to run correlation log. Report Date: 3/6/2009 Job Category: DRILLING 24 Hr Summary Run correlation log. Space out completion. R/U & cement 3-1/2" csg in place. R/D cmt equipment. Flush & blow down surface equipment. Centrifuge mud to 9.8 ppg & move to storage. Pickle mud pumps. N/D stack & flow line. Set 3-1/2" csg slips w/ 60 klbs net tension on tubing neck. Cut 3 -1/2" csg & LID stump. Move out stack. Set 3 -1/2" packoff &test. Ops Trouble Start Time End Time Dur(hrs) Ops Code Activity Code Status Code Comment 06:00 09:30 3.50 RUNPUL ELEC AF PJSM. R/U electric line. Run GR -CCL correlation log. RID electric line( -2.8' correction). 09:30 10:00 0.50 RURD CMT AF - PJSM. R/U cement head and cement line. 10:00 10:30 0.50 RURD CSG AF R/D casing tongs and slips. 10:30 12:00 1.50 CLEAN RIG AF Clean and organize rig floor. Mix 90bbls 3 %KCL brine in vac truck. PJSM for cement job. 12:00 13:30 1.50 PUMP CMT AF Pump 3bbls fresh water. Test cement lines to 4000psi. Mix and pump 40bbls MCS -4D 11.5ppg spacer. Mix and pump 1132SXS class "G" cement w /.05 %bwoc static free, .5 %bwoc calcium chloride, 1.2 %bwoc BA -56, .5 %bwoc EC -1, .4% bwoc CD -32, 1 gphs FP -6L, .2% bwoc Sodium Metasilicate and 43.6% fresh water to yield 235bbls 15.8ppg slurry. 13:30 14:00 0.50 PUMP CMT AF Displace w/70.4bbls 3 %KCL brine. Bump plug wI3200psi 1200psi over last displacement pressure. Bleed off pressure. Floats held. CIP @ 14:00hrs. 100% returns. Lost 5 bbl mud throughout job. www.peloton -com Report Printed: 3/17,2009 • 40 Marathon Operations Summary Report ,,,,OjlC l ny Well Name: KENAI BELUGA UNIT 11 -17X °ps L_ StartTme , ad The Dorms? Ops Cole ActLtGiCOtle Stalls TrottACode Comm kt 14:00 22:00 8.00 VVAITON CMT AF Miile VVOC. RiD cement equipment. Blow down & flush surface equipment. Pickle mud pumps. Clean trip tank. Prep to ND ROPE. Centrifuge 350bbIs (6 hrs) 11 .0ppg mud down to 9.7 +ppg & move to storage tank. 22:00 00:00 2.00 NUND ROPE AF PJSM: RaD flow nipple & drip pan. Lift stack. Clean mud pits. 00:00 01:00 1 .00 NUND ROPE AF PJSM w/ Vetco Gray & MOC completion engineers: Set 3-1/2" csg slips w/ 60 klbs net tension on tubing (75 klbs on drillers weight indicator). 01:00 04:30 3.50 NUND BOPE AF Make rough cut on csg & remove stump. Finish NiD BOPE. Move out stack & set in rack. Make final cut on csg & dress off. Install & test 3-112" packoff to 5000 psi f/ 10 min (ok). Set 3" TVVCV. 04:30 06:00 1.50 NUND TREE AF NIJ production tree. Daily Operations Report Date: 3/72009 Job Category DRILLING 24 H r Summary Test tree void to S000psi/Smin. Test tree to S000psi/Smin and chart test. Test tree to 10,000psi. Pull TVVC. Test 3 1/2" casing to 2000psi/3Omin. Install BPV. Rig down GD -1 for rig move. opt L_ StartTme ErdTime Orr Ors) OpsCc* ActittrCotle Saps TrorbleCode C[mmeit 06:00 06:30 0.50 NUND TREE AF Cont. to NA1J Vetco MB -196 3 1/2" X 13 5/8" 5M TBG bonnet X 3 1/16" 10M _ tree. 06:30 10:00 3.50 TEST TREE AF Test tree void to S000psitl Omin. Test tree to S000psi/1 Omin(chart). Test tree to 10000psi/1 Omin w/vetco pump. Pull MC. Test 3 1/2" CSG to 2000psi/30min(chart). Install BPV. 10:00 12:00 2.00 RURD RIG AF _ Clean pits and R.D rig. LaD elevators & bails. RED service loop. 12:00 00:00 12.00 RURD RIG AF PTSM: LSD top drive & torque tube. LT) stairs from BOP connex to rig floor. LAD beaver slide. Prep & scope down derrick. Push in bridge crane beams. Blow down rig water. Pickle test pump. V1Arrteriae drawworks. Remove trip tank from cellar. Suck out carrier sumps. Move mud products, #3 pump house & auxiliary generator to 41 -7 pad. 00:00 02:00 2.00 RURD RIG AF PTSM: RID driller's console, hydraulic, electric & service lines from sub to rig floor. 02:00 06:00 4.00 RURD RIG AF PJSM w/ ASRC crane operator: Load BOP connex on trailer. Crane down wind walls, back landing & stairs, dog house, drillers side gray iron, panic line, choke house, flow line, back stairs & landing, ods gray iron. Report Date: 3/72009 Job Category: DRILLING 24 H r SImmary Cont. crane work. Move miscelaneous loads to pad 41 -7. Prep rig to move. Release Rig to KBU42 -6X @ 12:00hrs 3/7/2009. Op L— StartTme Erdrme D1rOrs) Ops Cede AuWtlrCOde Stapa TrorbkCcde canmea 06:00 09:00 3.00 RURD RIG AF Crane down choke house, flow line stairs, solids connex and fuel tank. 09:00 12:00 3.00 RURD RIG AF PJSM with truck drivers for rig move. Prep rig to move. Move miscelaneous loads to Pad 41 -7. Released Rig to KBU42 -6X @ 12:00hrs 3/7/2009. Report Date: 3113/2009 Job Category: COMPLETION 24 H r GImmary Prep well to run CBL 1 GR opa L— StartTme EidTme D1rOrs) Om Code AutLrtrcode Stalls Troede Cock Canmeit 12:30 13:00 0.50 SAFETY MTG AF PJSM with Vetco -Gray. Review JSA, job assignments, active gas production pad, red lights for fire, blue lights for gas emission, sirens, muster area my vehicle will be emergency vehicle, 1st aid, eye wash station at GCI. buddy rule, 3 second rule, stop the job authority etc. 13:00 13:15 0.25 RLINPUL VLVE AF Rig up Vetco - Gray bar to pull back pressure valve. Pull valve. 13:15 13:30 0.25 SECURE WELL AF Secure wellhead, leave location, return work permit to #1 operator at gas field. Report Date: 3/62009 Job Category: COMPLETION 24 H r Summary Run CBL/GR, Turn well over to the facilities group to hook up to flowlines and facilities. www.peloton.com Report Printed: 4/242009 M Marathon Operations Summary Report MARATHON s Oil Company Well Name: KENAI BELUGA UNIT 11 -17X opt L____ SWtTlne Eul Tine DINS rs) Opt Cale ActliteCcde Strtls Trouble Cce Came it 07:30 08:30 1 .00 SAFETY MTG AF Arrive at location, obtain work permit, hold PJSM - Topics discussed: review JSA, assign jobs, pinch points, overhead loads, slips, trips, falls, active gas production pad, red lights for fires, blue lights for gas emission, sirens, muster points, emergency calls to #1 operator 283 -1305, let ring twice, no answer dial 911, emergency vehicle. Small grating where flowline goes underground is a hazard due to excavation around grating being a ankle twister. Marked with orange cone. Focus when working around this area. 08:30 10:00 1.50 RURD ELEC AF Rig up electric wireline unit, crane, and packoff on wellhead. Nitecap on tree over swab valve frozen. Obtain heater, heat cap, remove cap. Rig up packoff 10:00 13:30 3.50 RUNPUL ELEC AF RIH with CBL / GR tool. Tie log into Weatherford Measured Depth Photo Density 1 Dual Spaced Neutron 1 Gamma Ray log dated 1 March 2009. Bottom logged interval 7900 feet MD. Cement top at 4430 feet MD. 13:30 15:00 1 .50 RURD ELEC AF POOH with wireline, rig down wireline truck, crane truck and lubricator. Police location for garbage. 15:00 15:30 0.50 SECURE WELL AF Secure wellhead for evening , turn well aver to production and facilities group, turn in work permit, leave location. Daily Operations Report Date: 419/2009 Job Category: COMPLETION 24 H r Summary MIRU Pollard and PDS to run 2.30" GR and 24 arm caliper from 7903' KB back to 4500'. ova - L— SgrtTrne Eid The Our (ire) Ops Cale A+clJt Cale Scads Trouble Cede Come It 07:30 08:06 0.60 SAFETY MTG AF Hold SimOps meeting. Hold PJSM. Discuss alarms, muster area, and emergency response. Discuss Pollard JSA and make job assignments. Obtain SWP. 08:06 09:15 1.15 RURD SLIK AF Spot equipment. PU lubricator. MU tool string- rs, kj, 1-1/2" x 10' stem,kj, oj, Issj,2' x 1-1/2" stem, 2.30" GR(cutter style). Vac trk to suck out cellar. Spread sand and,lce melt loc. 09:15 09:27 0.20 TEST EQIP AF Carry lubricator to WH. PTest lubricator. Test good. 09:27 10:24 0.95 RUNPUL SLIK AF RIH(1) wi 2.3" GR. Tag TD c@ 7905' KB. POOH. 10:24 13:33 3.15 SAFETY DRIL AF RIH (2) w1 PDS's 24 arm caliper to 7903' KB. Wait for arms to open. PUH 60 fpm logging casing to 4500'. POOH. 13:33 14:13 0.75 RURD SLIK AF OOH. Bleed down lubricator. RD E -Line unit. 14:18 14:33 0.25 SECURE WELL AF Close all valves of Whl. PTest tree cap. Test good. Secure well. Notify operator we have finished. Turn in Permit. Sign out. Leave location. 14:33 15:30 0.95 Report Date: 41152009 Job Category: COMPLETION 24 Fir Summary Continue rigging up Frac crew, Coiled Tubing Unit, Test BOP's - test successful. State waived having inspector on site. aps StartTine Eid The Du tart) Ops Cale ActlirliCotle Stalls Trouble Code _ Canme It 07:30 08:00 0.50 SAFETY MTG AF Arrived on location, obtained work permits. 08:00 09:00 1 .00 RURD COIL AF Spot equipment, layout containment. Walked location, checked for spills and leaks. 09:00 09:30 0.50 SAFETY MTG AF Held prejob safety meeting. Reviewed slips, trips, and falls. Discussed lifting hazards and pressure testing protocol. Overview of spill reporting and stop the job authority. 09:30 14:00 4.50 RURD COIL AF RAJ frac head and UT BOP's. Pressure tested frac treating lines to 9500 psi, recorded test on BJ TMV computer. 14:00 17:00 3.00 TEST @OPE AF Pressure test BJ CIT BOP's. Test waived by Jim Regg, AOGCC. Test successful, no issues. 17:00 17:30 0.50 PERF CSG AF Perforate Module 1. Physically verified at wellhead and acoustically monitored 17:30 20:00 2.50 RURD COIL AF RAJ Expro flow back equipment. Spotted flare stack and gas seperator. Changed out elbow on sand unit. Attemped to pressure test flow back iron. Test failed. Need to bleed off pressure and change out rubber gasket in 3" Ninety degree elbow coming out of sand separator. Shutting down for the evening 20:00 20:15 0.25 SECURE WELL AF secure wellhead for evening. Night crew on watch ovenight and firewatch on heaters. www.peloton.com Report Printed: 4/2412009 • . Marathon Operations Summary Report , „ ,Oil Company Well Name: KENAI BELUGA UNIT 11 -17X Daily Operations Report Date: 4,/7/2009 Job Category: COMPLETION 2111 r Summary Fracture stimulate Modules 1 -9 aps L__ Oturrine EldTtne 61r$rSy OpaCok Actuivcock GUIs Trouble Cpie Came It 07:30 08:30 1.00 SAFETY MTG AF Arrive location, obtain work permit and hold safey meeting. PJSM - attendees - pad operators, G & 1 operators, BJ services, Expro testing and Excape, ASRC and Marathon. Topics - slips, trips, falls, emergency exits, Buddy rule, 3 second rule, volcano preparedness, emergency numbers (283 -1305 and 911) emergency vehicle. assign jobs, gas production pad. Red lights for fire, blue lights for gas emission, sirens, muster area. Sign in sheet. Kevin Herrin to man gate. 08:30 10:30 2.00 RURD PIPE AF Finish rigging up flowback lines through sand buster and gas buster. Pressure test lines to 4500 #, test successful. 10:30 11:00 0.50 MIX FLD AF Gel up completion fluid, prepare to frac interval 1. 11:00 12:00 1 .00 REPAIR EQIP TA MSS/ Swap out hoseNalve assembly on Sand King. 12:00 12:24 0.40 PUMP FRAC AF Fracture stimulate Mod. 1. Breakdown pressure - 6200 #. Pumped .5# ✓ slurry, rate - 16.1 BPM, Pressure - 5090psi. Pumped 2# slurry, rate - 15.8BPM, Pressure - 4500psi. Pumped 4# slurry, rate - 16.06PM, Pressure - 4480psi. Pumped 4# slurry, rate - 15.7#, Pressure 4530 psi. Flush away sand. Total sand pumped - 21680 gross (2700# Flex and 19000# 20140). Total fluid pumped - 317 bbls. 12:24 12:33 0.15 PERF TBG AF Perforated Module 2 - 3888 PSI. Saw good indication at surface. 12:33 12:51 0.30 PUMP FRAC AF Fracture stimulate Mod. 2. Breakdown pressure - 4538 #. Pumped 2# slurry, rate - 15.66PM, Pressure - 4313psi. Pumped 4# slurry, rate - 15.8BPM, Pressure - 4290psi. Pumped 5# slurry, rate - 15.58PM, Pressure - 4309psi. Pumped 6# slurry, rate - 15.4 #, Pressure 4461 psi. Screened out before 8# entered formation. Total sand pumped - 19970 gross (2490# Flex and 17480# 20140). Total fluid pumped - 129 bbls. 12:51 13:51 1 .00 FLOW BACK AF flowed well back to tanks. Total fluid back to tanks -94 BBL gelled slurry 13:51 14:21 0.50 PUMP WTR AF Pumped 68 BBL of KCL water to displace full casing volume back into Mod. 14:21 14:36 0.25 PERF CSG AF Perforated Module 3. Verified at wellhead and acoustically. 14:36 14:51 0.25 PUMP FRAC AF Fracture stimulate Mod. 3. Breakdown pressure - 5217 #. Pumped 2# slurry, rate - 168PM, Pressure - 4259psi. Pumped 4# slurry, rate - 16.1 BPM, Pressure - 4596psi. Pumped 5# slurry, rate - 15.96PM, Pressure - 4959psi. Total sand pumped - 9665 # gross No Flex. Total fluid pumped - 211 bbls. 14:51 15:06 0.25 PERF CSG AF Perforated Module 4. Verified at wellhead and acoustically. 15:06 15:21 0.25 PUMP FRAC AF Fracture stimulate Mod. 4. Breakdown pressure - 4660 #. Pumped 2# slurry, rate - 15.8 BPM, Pressure -3505 psi. Pumped 3# slurry, rate - 16.0BPM, Pressure - 3715psi. Pumped 5# slurry, rate - 16.1 BPM, Pressure - 3943psi. Pumped 6# slurry, rate - 15.9 BPM, Pressure - 4089. Total sand pumped - 11,770 # gross 1470 # Flex. 10,300 # 20/40 sand. Total fluid pumped - 163 bbls. 15:21 15:36 0.25 PERF CSG AF Perforated Module 5. Verified at wellhead and acoustically. 15:36 15:51 0.25 PUMP FRAC AF Fracture stimulate Mod. 5. Breakdown pressure - 3932 #. Pumped 2# slurry, rate - 15.6 BPM, Pressure -3409 psi. Pumped 4# slurry, rate - 15.5 BPM, Pressure - 3481 psi. Pumped 6# slurry, rate - 15.9 BPM, Pressure - 3792psi. Pumped 8# slurry, rate -16.0 BPM, Pressure - 4156. Total sand pumped - 19270 # gross 2400 # Flex. 16870 # 20/40 sand. Total fluid pumped - 162 bbls. 15:51 16:06 0.25 PERF CSG AF Perforate Module 6 and Module 7. Verified at wellhead and acoustically 16:06 16:21 0.25 PUMP FRAC AF Fracture stimulate Mod. 6 and Module 7 together. Breakdown pressure - 3900#. Pumped 2# slurry, rate - 15.8 BPM, Pressure -3571 psi. Pumped 4# slurry, rate - 15,4 BPM, Pressure - 3651 psi. Pumped 6# slurry, rate - 15.5 BPM, Pressure -3898 psi. Pumped 8# slurry, rate -'15.9 BPM, Pressure - 4685. Total sand pumped - 35580 # gross 4440 # Flex. 31140 # 20/40 sand. Total fluid pumped - 222 bbls. ISIP - 3670# 16:21 16:36 0.25 PERF CSG AF Perforated Module 8. Verified at wellhead and acoustically. www.peloton.corn Report Printed: 4124/2009 Marathon Operations Summary Report ( OilCompany Well Name: KENAI BELUGA UNIT 11 -17X opz L- StartTlne Eicl Ttne Di Ops Cock &till/C ck SUtu TrolbkCock Come it 16:36 16:51 0.25 PUMP FRAC AF Fracture stimulate Mod. 8. Breakdown pressure - 4097 #. Pumped 2# slurry, rate - 15.6 BPM, Pressure -3621 psi. Pumped 4# slurry, rate - 15.5 BPM, Pressure - 3733 psi. Pumped 6# slurry, rate - 16.1 BPM, Pressure -4251 psi. Pumped 8# slurry, rate - 15.9 BPM, Pressure - 5135. Total sand pumped - 16850 # gross 2098 # Flex. 14752 # 20140 sand. Total fluid pumped - 148 bbls. ISIP - 3617 #(x.16:05 PM 16:51 17:06 0.25 PERF CSG AF Perforated Module9. Verified at wellhead and acoustically. 17:06 17:21 0.25 PUMP FRAC AF Fracture stimulate Mod. 9. Breakdown pressure - 4155 #. Pumped 2# slurry, rate - 15.5 BPM, Pressure -3621 psi. Pumped 4# slurry, rate - 15.6 @PM, Pressure - 3725psi. Pumped 6# slurry, rate - 15.3 BPM, Pressure - 4603psi. Screened out before # slurry hit perforations Total sand pumped - 26200 # gross. Sand level in csg. 3350 feet. Sand in formation - 10,700 # gross. 1350 # Flex. 9350 # 20/40 sand. Total fluid pumped - 114 bbls. Bleed pressure below 4500# and flow back to tanks. 17:21 18:21 1.00 FLOW BACK AF 18:21 18:51 0.50 SAFETY MTG AF Held pre -job safety meeting. Discussed clean out operations and reviewed wellbore depths. 18:51 20:21 1 .50 TEST ROPE AF Function test BOPS and shell test stack. Fill CRT and shell test same Iowihigh. 20:21 23:51 3.50 RUNPUL COIL AF RIH w1 Coiled Tubing for KCI cleanout. Once on bottom, increased rate and circulated bottoms up. 23:51 01:21 1 .50 RUNPUL COIL AF POOH w1 Coiled Tubing. 01:21 02:51 1.50 RURD COIL AF Displaced Ca with methanol, RiD injection unit from wellhead. Close and lock blind rams, shut down for the night and secured location. Daily Operations Report Date: 4)1812009 Job Category: COMPLETION 24 H r Summary Frac. Stim. Mod. 10 - 13, Clean out w 1 CTU to bottom, Jet well in. ova L_ StartTfe E�dTlnc D1r OK) O(aCode A,c1Jr(Cock Stalls Tr.:W:4e Cock COnmeIt 07:30 08:30 1 .00 SAFETY MTG AF Arrive location, obtain work permit, hold PJSM - Attendees - BJ Services, Expro, ASRC, Marathon, Pad Operator. PJSM - Topics - slips, trips, falls. emergency numbers - 283 -1305 ( let ring 4 times, no answer, call 911), find nearest exit in case of emergency, buddy rule, three second rule, muster area, active gas production pad, red lights for fire, blue lights for gas emission, sirens, muster area, emergency vehicle, emergency driver, volcano preparedness, simultaneous operations w1 Gal. 08:30 08:45 0.25 PERF CS0 AF Perforate Modules 10 and 11. Verified at wellhead and acoustically. Mod. 10 interval is 7010' - 7020' MD. Mod 11 interval is 6897' - 6907' MD. 08:45 09:00 0.25 PUMP FRAC AF Fracture stimulate Mod. 10 and Module 11 together. Breakdown pressure - 4150#. Pumped 2# slurry, rate - 16.1 BPM, Pressure -2651 psi. Pumped 4# slurry, rate - 16.2 6PM, Pressure - 2595 psi. Pumped 6# slurry, rate - 16.3 BPM, Pressure -2701 psi. Pumped 8# slurry, rate - 16.1 BPM, Pressure - 3302. Pumped 10# slurry, rate - 16.2 BPM, Pressure - 3105.Total sand pumped - 30540 # gross no Flex. Total fluid pumped - 268 bbls. ISIP - 2405# 09:00 09:15 0.25 PERF CSG AF Perforate Modules 12. Verified at wellhead and acoustically. Interval is 6848' - 6858' MD. 09:15 09:30 0.25 PUMP FRAC AF Fracture stimulate Mod. 12 together. Breakdown pressure - 3200 #. Pumped 2# slurry, rate - 13.2 BPM, Pressure -2291 psi. Pumped 4# slurry, rate - 13.4 BPM, Pressure - 2454 psi. Pumped 6# slurry, rate - 13.3 BPM, Pressure -2739 psi. Pumped 8# slurry, rate -13.4 BPM, Pressure - 3007. Total sand pumped - 12,440 # gross 1560# Flex, 10,880# -20/40 sand. Total fluid pumped - 128 bbls. ISIP - 2425# at 9:10 am. 09:30 09:45 0.25 PERF CSG AF Perforate Modules 13. Verified at wellhead and acoustically. Interval is 6453' - 6463' MD www.peloton.com Report Printed: 424/2009 Marathon Operations Summary Report 4111 1110 r a Oil Company Well Name: KENAI BELUGA UNIT 11 -17X op, StartTlne EW Time Dtr (1rs) Ops Cole Aot1rtLCode SS1tI$ Trorbk Cede Come it 09:45 10 :00 0.25 PUMP FRAC AF Fracture stimulate Mod. 13. Breakdown pressure - 3752 #. Pumped 2# slurry, rate - 12.8 BPM, Pressure -1755 psi. Pumped 4# slurry, rate - 13.0 BPM, Pressure - 1635 psi. Pumped 6# slurry, rate - 13.4 BPM, Pressure -1961 psi. Pumped 8# slurry, rate -13.3 BPM, Pressure - 2329. Pumped 10# slurry, rate - 13.1 BPM, Pressure - 2450. Pumped 12# slurry, rate - 13.2 BPM, Pressure - 2547 #. Total and pumped -15580 # gross 520# Flex, 15,060# - 20140 sand. Total fluid pumped -130 bbls. !SIP - 1970# 10:00 13:00 3.00 WAITON EQIP AF Call Coil Tubing Unit crew. Wait on Coil crew to clean out to bottom. 13:00 15:00 2.00 RURD COIL AF Arrive location, hold PJSM, review work to be performed, review JSA, assign jobs, start equipment, replace stripper rubbers, oil injector head chains, displace methanol from coil with KCL, shell test well head equipment - passed. Ready to run in hole. 15:00 20:00 5.00 RUNPUL COIL AF Run in hole with CTU. Pump rate 2 BPM - KCL with 350 scfm N2. Cleaned out to 7934' MD on CTU odometer. Continue to circulate on bottom while changing out to N2 jetting. 20:00 22:00 2.00 PUMP N2 AF Switch completely over to N2. Kill fluid pump, increase N2 rate to 500 scfpm. Wait for N2 to turn corner. Start out of hole at 20:30 PM, tubing speed 20 fpm. Bump N2 rate up to 750 scfpm until above all perforations. Kill N2 at 6400 feet MD. Pull out of hole at 80 fpm. At surface at 22:30 PM 22:00 22:45 0.75 RURD COIL AF Rig down CTU. Set injector head back onto cradle. Shut valves and blow down Coil with N2 to blow down tank. 22:45 23:00 0.25 SECURE WELL AF Secure wellhead and turn well over to Expro Well Test. Daily Operations Report Date: 4119!2009 Job Category: COMPLETION 2t H t Sturman/ Flow testing well allowing formation to clean up, rigging down frac and coil crew. ops StartTlne Eta Ttne Drr(irsi Ops Acnjrl/Ccde GM's Troeble Cale Commeit 07: 08:00 0.50 SAFETY MTG AF PFSM - Topics discussed - slips, trips, falls, pinch points, working under loads, muddy location. Active as production pad, red lights for fires, blue lights for gas emission, sirens, muster area, emergency phone numbers, emergency vehicle, buddy rule, three second rule, volcano alert. 08:00 11:30 3.50 RURD COIL AF Rig down coil unit 11:30 1200 0.50 SECURE J'1ELL AF secure wellhead, turn in work permit, leave location www.peloton.com Report Printed: 412412009 API #: #: 5 209-016 133 - KBU 11 -17x • API #: 50- 133 - 20585 -00 -00 Pad 41 -18 Prop. Des: ADL - 022330 439' FNL, 420' FEL, MARATHON KB elevation: 88' (21' AGL) Sec. 18, T4N, R11 W, S.M. WBS #: DD.08.18948.CAP.DRL Latitude: 60° 26' 38.035" N Conductor Longitude: 151° 04' 37.405' W 20" K55 133 ppf X. Top Bottom l M D 0' 157' Y: TVD 0' 157' LIN Spud: 2/15/2009 15:30 hrs TD: 3/29/2009 01:30 hrs Surface Casing Rig Released: 3/7/2009 12:00 hrs 13 - 3/8" K - 55 68 ppf Butt PA #: Top Bottom MD 0' 1,576' TVD 0' 1,575' 16" Hole Cmt wl 410 sks (181 bbls) of 12.0 ppg, Type 1 cmt. 29 sks (40 bbls) cmt Top of 3 - 1/2" Tubing Cement returned to surface with 100% returns. @ 4,423' MD Intermediate Casing 9 -5/8" L -80 40 ppf Butt 0. Top Bottom . , MD 0' 5,586' il `�/ TVD 0' 5,450' 12 -1/4" Hole Cmt wl 327 sks (193 bbls) of i 10.5 ppg Class G Lead. Floats held. 0 n 1 Lost 12 sks (7 bbls) during cementing process. Production Tubing Chemical Injection Mandrels 777"' 3 -112" L -80 9.3 ppf EUE Mod @ 6,645' MD, opens @ 10,032 psi )1 t r'; Top Bottom & 1 I i MD 0' 8,012' @ 7ag2' M - D T r TVD 0' 7,876' # @ 7,330' MD opens @ 9,742 psi '' 11 L (caliper 4/7/09) w y' 8 -1/2" Hole Cmt wl 1,132 sks (235 bbls) III 4 15.8 ppg, Class G, 100% returns. ) Uf t4 44 Excape System Details Excape System Details t ! - 13 Excape modules placed along Flappers MD (RKB): j with 2 chemical injection mandrels Module 13 = 6,470' " Red contol line fires modules 7 - 13 Module 12 = 6,865' 1 41 . & chemical injection mandrel Module 11 = NA 1 1 R `, - control line fires Modules 1 - 6 Module 10 = 7,026' & chemical injection mandrel Module 9 = 7,146' 1 .4 1 I 1 Beluga Perfs MD (RKB): ioit Module 8 = 7,251' 1 Module 13 = 6453' - 6463' Module 7 = NA , Module 12 = 6848' - 6858' Module 6 - 8,040' 11 ` Module 11 = 6897' - 6907' Module 6 = 7,368' (caliper 4/7/09) Module 10 = 7010' 7020' Module 5 = 8,130' Module 9 = 7128' - 7138' iii Module 4 = 8,480' Module 8 = 7233' - 7243' Module 3 = 8,580' / Module 7 = 7285' - 7295' Module 2 = 8,715' �Il • Module 6 = 7348' - 7358' Module 1 = NA r Module 5 = 7393' - 7403" Tyonek Perfs MD (RKB): TD PBTD Module 4 = 7472' - 7482" 8,055' MD 7,975' MD Module 3 = 7602' - 7612" 7,919' TVD 7,838' TVD Module 2 = 7824' - 7834" Module 1 = 7888' - 7898" Well Name & Number: Kenai Beluga Unit 11 -17x Lease: Kenai Gas Field Municipality: Kenai Peninsula Borough State: Alaska I Country:I USA Perforations (MD): 6,453' - 7,898' (TVD): 6,317' - 7,762' Angle /Perfs: - 0.7 ° Angle @ KOP and Depth: 1.9° / 100' from 2,00' - 3,200' MD Dated Completed: 4/14/2009 Completion Fluid: Revised by: Kevin Skiba Last Revison Date: 5/13/2009 Company: Marathon 011 Company Job Number: 2443298 Calculation Method: Minimum Curvature R Field: Kenai Gas Field Magnetic Decl.: 18.62 Proposed Azimuth: 120.25° BAKE IJGHES Borough Kenai Peninsula Grid Corr.: n/a Depth Reference: RKB INTEQ Well Name: KBU 11 -17x Total Survey Corr.: 18.62 Tie Into: Surface HON MARAT Rig: Glacier#1 Target Info: Tool Survey Ind Azimuth Course TVD VS Coordinates Closure DLS Build Rate Walk Rate No. Type Depth (ft) ( °) ( °) L9th (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 214 0.48 325.98 214 214.00 -0.81 0.74 N 0.50 W 0.90 325.98 0.22 0.22 152.33 • 3 MWD 335 0.62 343.02 " 121 334.99 -1.74 1.79 N 0.98 W 2.04 331.38 0.18 0.12 14.08 4 MWD 454 0.87 334.08 119 453.98 -2.97 3.22 N 1.56 W 3.58 334.15 0.23 0.21 -7.51 5 MWD 575 1.48 343.41. 121 574.96 -4.87 5.54 N 2.41 W 6.04 336.52 0.53 0.50 7.71 6 MWD 696 1.17 79.22 121 695.94 -5.08 7.27 N 1.64 W 7.45 347.29 1.63 -0.26 - 218.34 7 MWD 818 0.90 90.39 122 817.92 -3.31 7.50 N 0.54 E 7.52 4.14 0.28 -0.22 9.16 8 MWD 945 1.15 90.18 127 944.89 -1.34 7.49 N 2.81 E 8.00 20.60 0.20 0.20 -0.17 9 MWD 1072 2.06 127.83 127 1071.85 2.03 6.08 N 5.89 E 8.47 44.09 1.06 0.72 29.65 10 MWD 1199 2.26 127.63 127 1198.76 6.77 3.15 N 9.68 E 10.18 71.95 0.16 0.16 -0.16 11 MWD 1325 2.52 138.12 126 1324.65 11.87 0.43 S 13.49 E 13.50 91.81 0.40 0.21 8.33 12 MWD 1452 2.50 138.66 127 1451.53 17.16 4.58 S 17.19 E 17.79 104.94 0.02 -0.02 0.43 • 13 MWD 1530 1.70 130.67 78 1529.47 19.91 6.62 S 19.19 E 20.30 109.02 1.09 -1.03 -10.24 14 MWD 1626 1.62 128.51 96 1625.43 22.65 8.39 S 21.33 E 22.92 111.47 0.11 -0.08 -2.25 15 MWD 1813 " 1.71 126.73 187 1812.35 28.04 11.70 S 25.64 E 28.18 114.54 0.06 0.05 -0.95 16 MWD 1940 2.09 129.97 127 1939.28 32.21 14.32 S 28.93 E 32.28 116.34 0.31 0.30 2.55 17 MWD 2069 2.29 128.83 129 2068.19 37.07 17.45 S 32.74 E 37.10 118.06 0.16 0.16 -0.88 18 MWD 2196 2.47 130.11 127 2195.08 42.28 20.81 S 36.81 E 42.28 119.48 0.15 0.14 1.01 19 MWD 2259 3.20 133.07 63 2258.00 45.33 22.88 S 39.13 E 45.33 120.32 1.18 1.16 4.70 20 MWD 2323 4.60 136.08 64 2321.85 49.54 25.95 S 42.22 E 49.55 121.58 2.21 2.19 4.70 21 MWD 2387 5.97 133.57 64 2385.58 55.25 30.09 S 46.41 E 55.31 122.96 2.17 2.14 -3.92 22 MWD 2450 7.49 133.41 63 2448.14 62.44 35.17 S 51.77 E 62.58 124.19 2.41 2.41 -0.25 23 MWD 2513 8.98 132.42 63 2510.49 71.24 41.31 S 58.38 E 71.52 125.28 2.38 2.37 -1.57 24 MWD 2576 11.11 128.81 63 2572.52 82.05 48.43 S 66.74 E 82.46 125.97 3.52 3.38 -5.73 25 MWD 2640 12.58 126.88 64 2635.16 95.07 56.48 S 77.12 E 95.59 126.22 2.38 2.30 -3.02 26 MWD 2703 13.95 122.70 63 2696.48 109.48 64.70 S 89.00 E 110.03 126.02 2.65 2.17 -6.63 • 27 MWD 2766 15.47 120.00 63 2757.41 125.47 73.01 S 102.67 E 125.98 125.42 2.65 2.41 -4.29 28 MWD 2830 17.17 118.43 64 2818.83 143.44 81.77 S 118.37 E 143.87 124.64 2.74 2.66 -2.45 29 MWD 2892 18.46 118.93 62 2877.86 162.40 90.88 S 135.01 E 162.74 123.95 2.10 2.08 0.81 30 MWD 2955 19.07 119.78 63 2937.51 182.67 100.81 S 152.67 E 182.95 123.44 1.06 0.97 1.35 31 MWD 3019 19,74 119.94 64 2997.87 203.93 111.40 S 171.11 E 204.18 123.07 1.05 1.05 0.25 32 MWD 3082 21.29 118.67 63 3056.87 226.00 122.20 S 190.36 E 226.21 122.70 2.56 2.46 -2.02 33 MWD 3146 23.04 117.36 64 3116.14 250.13 133.53 S 211.68 E 250.28 122.24 2.84 2.73 -2.05 34 MWD 3208 S 24.49 116.75 62 3172.88 275.07 144.89 S 233.94 E 275.17 121.77 2.37 2.34 -0.98 35 MWD 3272 24.27 117.92 64 3231.18 301.46 157.02 S 257.40 E 301.52 121.38 0.83 -0.34 1.83 36 MWD 3335 24.29 117.85 63 3288.61 327.34 169.14 S 280.30 E 327.38 121.11 0.06 0.03 -0.11 • 37 MWD 3399 24.00 118.14 64 3347.01 353.50 181.42 S 303.42 E 353.52 120.88 0.49 -0.45 0.45 38 MWD 3461 23.83 118.06 62 3403.68 378.61 193.26 S 325.59 E 378.63 120.69 0.28 -0.27 -0.13 39 MWD 3523 23.84 _ 117.72 62 3460.40 403.65 204.98 S 347.73 E 403.65 120.52 0.22 0.02 -0.55 40 MWD 3586 23.69 117.69 63 3518.05 429.01 216.78 S 370.21 E 429.01 120.35 0.24 -0.24 -0.05 41 MWD 3650 23.59 118.34 64 3576.68 454.65 228.84 S 392.87 E 454.65 120.22 0.44 -0.16 1.02 42 MWD 3713 23.77 118.78 63 3634.38 479.95 240.94 S 415.09 E 479.95 120.13 0.40 0.29 0.70 43 MWD 3776 23.73 117.55 63 3692.04 505.30 252.91 S 437.46 E 505.30 120.03 0.79 -0.06 -1.95 44 MWD 3839 23.72 117.14 63 3749.72 530.62 264.55 S 459.97 E 530.63 119.91 0.26 -0.02 -0.65 45 MWD 3902 22.71 118.07 63 3807.62 555.42 276.06 S 481.98 E 555.44 119.80 1.71 -1.60 1.48 46 MWD 3965 21.84 117.97 63 3865.92 579.28 287.28 S 503.06 E 579.31 119.73 1.38 -1.38 -0.16 47 MWD 4029 21.16 119.26 64 3925.46 602.73 298.51 S 523.65 E 602.76 119.69 1.29 -1.06 2.02 48 MWD 4093 20.41 120.78 64 3985.30 625.44 309.86 S 543.32 E 625.47 119.70 1.44 -1.17 2.37 49 MWD 4155 19.51 , 120.86 62 4043.57 646.60 320.71 S 561.49 E 646.63 119.73 1.45 -1.45 0.13 50 MWD 4219 18.79 121.64 64 4104.03 667.59 331.60 S 579.44 E 667.61 119.78 1.19 -1.13 1.22 • 51 MWD 4282 18.21 122.46 63 4163.77 687.57 342.20 S 596.39 E 687.59 119.85 1.01 -0.92 1.30 52 MWD 4346 16.79 124.77 64 4224.81 706.78 352.84 S 612.42 E 706.79 119.95 2.47 -2.22 3.61 53 MWD 4409 16.36 123.21 63 4285.19 724.71 362.89 S 627.32 E 724.72 120.05 0.98 -0.68 -2.48 54 MWD 4473 15.37 122.10 64 4346.76 742.19 372.33 S 642.04 E 742.19 120.11 1.62 -1.55 -1.73 55 MWD 4536 14.20 122.33 63 4407.67 758.26 380.90 S 655.65 E 758.26 120.15 1.86 -1.86 0.37 56 MWD 4599 13.30 117.94 63 4468.86 773.22 388.43 S 668.58 E 773.22 120.16 2.19 -1.43 -6.97 57 MWD 4663 12.52 116.96 64 4531.25 787.50 395.03 S 681.26 E 787.51 120.11 1.27 -1.22 -1.53 58 MWD 4726 10.40 113.88 63 4592.99 799.97 400.42 S 692.55 E 799.98 120.04 3.50 -3.37 -4.89 59 MWD 4790 9.41 113.76 64 4656.03 810.91 404.87 S 702.62 E 810.92 119.95 1.55 -1.55 -0.19 60 MWD 4853 8.55 114.82 63 4718.26 820.69 408.91 S 711.59 E 820.71 119.88 1.39 -1.37 1.68 • 61 MWD 4917 7.09 114.47 64 4781.66 829.36 412.54 S 719.50 E 829.38 119.83 2.28 -2.28 -0.55 62 MWD 4980 5.59 118.04 63 4844.28 836.29 415.60 S 725.75 E 836.32 119.80 2.46 -2.38 5.67 63 MWD 5044 4.18 119.83 64 4908.04 841.74 418.22 S 730.52 E 841.77 119.79 2.22 -2.20 2.80 64 MWD 5107 2.58 113.16 63 4970.93 845.44 419.92 S 733.82 E 845.47 119.78 2.61 -2.54 -10.59 65 MWD 5170 1.77 106.00 63 5033.88 847.79 420.75 S 736.06 E 847.83 119.75 1.35 -1.29 -11.37 66 MWD 5234 1.57 101.27 64 5097.86 849.58 421.19 S 737.87 E 849.62 119.72 0.38 -0.31 -7.39 67 MWD 5297 1.58 107.24 63 5160.83 851.24 421.62 S 739.54 E 851.29 119.69 0.26 0.02 9.48 68 MWD 5361 1.30 99.03 64 5224.81 852.78 421.99 S 741.10 E 852.83 119.66 0.54 -0.44 -12.83 69 MWD 5424 1.33 93.89 63 5287.80 854.10 422.16 S 742.54 E 854.15 119.62 0.19 0.05 -8.16 70 MWD 5488 1.35 97.15 64 5351.78 855.46 422.30 S 744.03 E 855.52 119.58 0.12 0.03 5.09 71 MWD 5543 1.20 1 00.61 55 5406.77 856.60 422.49 S 745.24 E 856.66 119.55 0.31 -0.27 6.29 72 MWD 5673 0.73 84.48 130 5536.75 858.55 422.66 S 747.40 E 858.63 119.49 0.41 -0.36 -12.41 73 MWD 5863 0.67 89.46 190 5726.73 860.49 422.53 S 749.71 E 860.58 119.41 0.04 -0.03 2.62 74 MWD 6051 0.73 81.38 188 5914.72 862.37 422.34 S 752.00 E 862.48 119.32 0.06 0.03 -4.30 • 75 MWD 6242 0.66 60.17 191 6105.70 863.86 421.61 S 754.15 E 864.01 119.21 0.14 -0.04 -11.10 76 MWD 6432 0.55 62.41 190 6295.69 864.89 420.65 S 755.91 E 865.07 119.09 0.06 -0.06 1.18 77 MWD 6622 0.67 50.42 190 6485.68 865.76 419.51 S 757.58 E 865.98 118.98 0.09 0.06 -6.31 78 MWD 6812 0.48 53.78 190 6675.67 866.46 418.34 S 759.07 E 866.72 118.86 0.10 -0.10 1.77 79 MWD 7003 0.61 43.02 191 6866.66 867.01 417.12 S 760.41 E 867.31 118.75 0.09 0.07 -5.63 80 MWD 7193 0,73 30.02 190 7056.65 867.23 415.33 S 761.71 E 867.58 118.60 0.10 0.06 -6.84 81 MWD 7383 0.68 25.52 190 7246.64 867.13 413.27 S 762.80 E 867.56 118.45 0.04 -0.03 -2.37 82 MWD 7574 0.88 19.54 191 7437.62 866.76 410.86 S 763.78 E 867.28 118.28 0.11 0.10 -3.13 83 MWD 7764 0.72 15.35 190 7627.60 866.18 408.34 S 764.58 E 866.79 118.11 0.09 -0.08 -2.21 84 MWD 7889 0.91 15.28 125 7752.59 865.73 406.62 S 765.05 E 866.40 117.99 0.15 0.15 -0.06 • 85 MWD 8002 0.99 9.92 113 7865.57 865.15 404.79 S 765.46 E 865.90 117.87 0.11 0.07 -4.74 86 PROJ 8055 0,99 9.92 ; 53 7918.56 864.84 403.89 S 765.62 E 865.62 117.81 0.00 0.00 0.00 • # y • Marathon Oil Company Alaska Asset Team M Marathon P.O. Box 1949 Kenai, AK 99611 MARATHON Oil Company Telephone 907/283 -1371 Fax 907/283 -1350 May 18, 2009 RECEIVED Mr. Tom Maunder MAY 9 2_005) Alaska Oil & Gas Conservation Commission 333 W 7 Ave Alaska Oil & Gas Cans, Cr mmi si ra Anchorage, Alaska 99501 Anchorage Reference: 10 -421 Gas Well Open Flow Potential Test Report Field: Kenai Gas Field Well: Kenai Beluga Unit 11 -17x Dear Mr. Maunder: Enclosed for your records is the Gas Well Open Flow Potential Test Report, 10 -421, for KBU 11 -17x well. The information provided in this report is based on a one point test. Please contact me at (907) 283 -1371 if you have any questions or need additional information. Sincerely, Kevin J. Skiba Regulatory Technician Enclosures: 10 -421 Open Flow Report cc: Houston Well File Kenai Well File KJS • STATE OF ALASKA 0 S.2 /.Of MA`f ALASKA OIL AND GAS CONSERVATION COMMISSION i 9 ?109 GAS WELL OPEN FLOW POTENTIAL TEST ERCATT Cons � U i . 1a. Test: U Initial ❑ Annual Li Special lb. Type Test: Li Stabilized H Non S 1g t ? o e ❑ Constant Time ❑ Isochronal El Other 2. Operator Name: 5. Date Completed: 11. Permit to Drill Number: Marathon Oil Company NA 209 - 016 - 3. Address: PO Box 1949 6. Date TD Reached: 12. API Number: Kenai Alaska, 99611 - 1949 March 29, 2009 50 133 - 20585 00 - 00- 4a. Location of Well (Governmental Section): 7. KB Elevation (ft): 13. Well Name and Number: Surface: 439' FNL, 420' FEL, Sec. 18, T4N, R11W, S.M. 88' (23' above GL) Kenai Beluga Unit 11 - 17x' Top of Productive Horizon: 8. Plug Back Depth(MD +TVD): 14. Field /Pool(s): 760' FNL, 290' FWL, SEC 17, T4N, R11W, S.M. 7,975' MD - 7,839' TVD , Kenai Gas Field / - Total Depth: 9. Total Depth (MD + TVD): Beluga & Tyonek Pools 760' FNL, 290' FWL, SEC 17, T4N, R11W, S.M. 8,055' MD - 7,919' TVD- 4b. Location of Well (State Base Plane Coordinates): 10. Land Use Permit: 15. Property Designation: Surface: x- 275,399.57 y- 2,356,287.72 Zone- 4 ADL - 022330 TPI: x- 276,140.00 y- 2,355,837.00 Zone- 4 16. Type of Completion (Describe): Total Depth: x- 276,140.00 y- 2,355,837.00 Zone- 4 13 Module Excape 17. Casing Size Weight per foot, lb. I.D. in inches Set at ft. 19. Perforations: (MD) From To 3.50" 9.3 2.992" 7,898' MD 6453'- 6463', 6848'- 6858', 6897'- 6907', 7010'- 7020', 7128'- 18. Tubing Size Weight per foot, lb. I.D. in inches Set at ft. 7138', 7233'- 7243', 7285'- 7295', 7348'- 7358', 7393'- 7403', 7472' - 7482', 7602'- 7612', 7824' - 7834', 7888, -7898' NA NA NA NA 20. Packer set at ft: 21. GOR cf /bbl: 22. API Liquid Hydrocardbons: 23. Specific Gravity Flowing Fluid (G): NA - - 0.56 24a. Producing through: 24b. Reservoir Temp: 24c. Reservoir Pressure: 24d. Barometric Pressure (Pa): ❑ Tubing l0 Casing 119 F 608 psia @ Datum 6,229 TVDSS 14.73 psia 25. Length of Flow Channel (L): Vertical Depth (H): Gg: % CO2: % N2: % HZS: Prover: Meter Run: Taps: 6,432' MD 6,296' TVD 0.56 0.282 0.134 0 - Facility - 26. FLOW DATA TUBING DATA CASING DATA Prover Choke Pressure Diff. Temp. Pressure Temp. Pressure Temp. Duration of Flow No. Line X Orifice psig Hw F psig F° psig F Hr. Size (in.) Size (in.) 1 . 3.826 X 1.000 532 9.70 60 - - - - — 72 2. X 3. X 4. X 5. X Basic Coefficient Flow Temp. Super Comp. No. (24 -Hour) h Pressure Factor Gravity Factor Factor Rate of Flow Pm Fb or Fp Ft Fg Fpv Q Mcfd 1. 118.211 24.125 546.73 1.00 1.336 1.040 2,852 2. 3. 4. 5. Temperature for Separator for Flowing No. Pr T Tr z Gas Fluid Gg G 1. 0.81 520.0 1.515 0.925 0.56 2. 3. Critical Pressure 673.1 4. Critical Temperature 343.2 5. Form 10 -421 Revised 1/2004 CONTINUED ON REVERSE SIDE' ; II S BFL MAY 2 2 20ltubmit in Duplicate Pc 2,832 Pc 8019913.3 I Pf No. Pt Pt Pc Pw Pw Pc Ps Ps Pf -Ps 1. 547 298913.69 2. 3. 4. 5. 25. AOF (Mcfd) 2,934 n 0.750 Remarks: Well was not shut in during test. SIWHP was estimated at 2817 psig based on MFT pressures taken when logging. I hereby certify th t the foregoing is true and c rrect to the best of my knowledge. Signed . � Title Regulatory Technician Date 5/15/2009 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 . • A Marathon Operations Summary Report eui4Tg Q ON Company Well Name: KENAI BELUGA UNIT 11 -17X Daily Operations Report Date: 3/V2009 Job Category: DRILLING 24 Hr Summary RIH f/6927'- 7995', Hole slick, CBU, @8055', Max. gas 3940 units, Shut in well circ. out gas, Wt. up mud to 10.7, POOH f/ logging, Hole slick, No gains No Iosses.R /U Loggers Ops Trouble Start Time End Time Dur(hrs) Ops Code Activity Code Status Code Comment :t13:,'; 07:00' : 1.00 TRIP WIPR AF RIH ( wiper Trip ) f -6927' -7995' Precautionary wash from - 7995 -8055' Hole slick. No gains or losses. tr7� 08.0 1 : 1.00 CIRC MUD TA WC Circulate B/U at 8055' Pump 525gpm, Gas units increased from 350 to 39411. _ units 1000stks short of B/U Shut well in and circulate through Gas buster at 90spm 925psi after 1100stks stop circulating and shut well in. No pressure build in hole or drillpipe. Open annular and continue circulating at 120spm ''''''.., 1050psi. initial gas 1350units after 650stks gas units decreased to100units. ,.'. Mud weight 10.3+ in and out " 0 9 0800 ° 1 1.50 CIRC MUD TS WC Begin to increase mud weight from 10.3ppg to 10.5ppg Continue circulating until mud weight at10.5 ppg. B/U gas after weight up 45units '08;"4:1 15 t :, 5.50 TRIP WIPR AF POH ( wiper Trip) f -8055' -5585' Pull pipe free from 8055' to 6907'. Back ream ,wash and clean up swollen clays from 6907' to 5825'. Pipe pulled clean - 5825'to 5585'. Mud weight 10.5ppg 15 ' "t, 6 "- 1.50 TRIP WIPR AF RIH ( wiper Trip) f -5585' to 7995' wash down f -5595' -8055' Hole clean no tight spots. No Gain loss 1 17 ,. 1.00 CIRC MUD AF Circulate and pump Hi -vis sweep at 8055' pump 525gpm 1800psi. Sweep returned at caculated hole volume with increase in cuttings. Max Gas on B/U _ 1143units. Note 1143 units after wiper trip of 7hours." 17: 1.50 CIRC MUD AF Circulate and increase mud weight from 10.5 +to 10.7ppq !: 1 'u Ji 8.00 TRIP DP AF PJSM; Check wet for flow, pump dry job, POOH 6'8055' -500', SLM out, Monitor well at csg. shoe, no gains no losses, Up wt. =200K Dn wt. =155K Rt wt. =175K SLM No correction 03: '' '041.30 .' 1.50 TRIP BHA AF PJSM; POOH lay down BHA break off bit. All connections appear to be free of any galling. 04:3€3 1.50 RURD ELEC AF PJSM; Safet Meeting ,Ri. up Weatherford wireline, Run quad combo lors. Report Date: 3/2/2009 Job Category: DRILLING 24 Hr Summary Run Quad combo logs, RIH w /5" D/P to csg shoe 5570', Cut drlg. line, RIH to 8055', CBU 867 units gas,POOH to shoe at 5570', R/U Weatherford wireline, RIH to shoe w/ wireline,Wireline MFT as per Marathon geoligist. Dps Trouble ' Start Time End Time Dur(hrs) Ops Code Activity Code Status Code Comment (` ` 7.00 LOG OH AF Continue Running Weatherford wireline Quad -combo logging suite from 8055' to 5585' (open hole.} log inside ay do casing tools 8 from 5585 -1600'. Poh with quad 50 combo tools and unload hole clew ,lwn . Note Logging tools ran to 0' w/o any problems, hole clean 1300, 3.50 TRIP DP AF Make Mule shoe and rih to 5565' 16:313 _CO 1.50 CUT WIRE AF PJSM ; Slip and cut drilling line. 171'total, 1010 a 1.50 TRIP DP AF PJSM; Cont. run in hole f/5570' to 7907', Strap, Pick up, drift, 5" drill pipe, RIH ?i f/7907' to 8055 ", wash down last 20', no fill. No gain or losses Hole slick. 19 :30 20:30 ° ' 1.00 CIRC MUD AF Circ. bottoms up, max gas 867 units.Pumping 546 GPM, 1200 psi.( Note gas units are from being off bottom for 24 hrs.) Mud weight 10.8 20:30 .00 2.50 TRIP DP AF PJSM; Check for flow, pump dry job, POOH f /6055' -5570' Up wt. =200K Dn. wt.145K Hole slick no tight spots. No gains No losses. 23:137) ' , ! 1.00 RURD ELEC AF PJSM; With Weatherford logging crew, R/U Sheaves and lubricator, make up tools. f3;£ Ilk& •F i . 2.00 LOG OH AF RIH with MFT tools to 9 5/8 csg shoe at 5570' with E -Line. Wait on pick TI(' points. 02:00" 4.00 LOG OH AF RIH to 8055' With MFT tools on E -line logs as per marathon geologist. first pressure at 7941'.Note : as of 0600hrs 10 attempts made with 4 successful tests Formation pressure at 7890' =10.81 EMW Report Date: 3/3/2009 Job Category: DRILLING 24 Hr Summary Run MFT, R/D loggers, POOH w/ 5" D/P, www.peloton.com Report Printed: 3/17/2009 r . . Marathon Operations Summary Report mom = �Oi[ Compa ny Well Name: KENAI BELUGA UNIT 11 -17X Ops Trouble ' Start Time End Time Dur(hrs) Ops Code Activity Code Status Code Comment 06 Cpl' 02:30 " 20.50 TEST PBU AF Run MFT pressure build up tests. P0H with mft tools on e line and clean up plugged pads. Run back in hole with MFT tools on e- line. Continue taking pressures from 7735' - 5567'(99 attempts made, 33 successful) 32 4 *AO r " 0.50 RURD ELEC AF _PJSM; Rig down Weaterford Wireline 33 ' '06:00 3.00 TRIP DP AF PJSM; POOH f/5567With 5" drill pipe and mule shoe.End evaluation phase at 0600 hrs.Move to Completion phase. Well static, no gains, no losses. Daily Operations Report Date: 3/4/2009 Job Category: DRILLING 24 Hr Summary Make up 8 1/2 BHA, RIH, CBU, 1502 units gas, MW =10.9, Increase mud wt to 11.0 ppg POOH UD D /P, UD BHA, R/D floor to run 3 1t2 csg., R/U to run 3 1/2 csg., Test 2 7/8 -5 1/2 varible rams . Ops Trouble Start Time End Time Dur(hrs) Ops Code Activity Code Status Code Comment 05:0 ,; r " :30 0.50 TRIP BHA AF Make up 8 1t2 bit , bit sub with float HWDP and jars RIH ,; 12:3. ; 6.00 TRIP DP AF Continue RIH with Drill pipe Fill pipe at 2800', 5550' and 7990' Hole clean no tight spots. No gain or losses 12 15 :00 2.50 CIRC MUD AF Circulate B/U @ 525gpm 1275psi 40rpm. Max B/U gas 1502units. after 37hrs from last b/u circulation. Nofe. At 5500 stks gas units at 565, at 6580stks 1000units At B/U 7856stks 1502units. Mud weight 10.9+ In and out. Increase mud weight to 11.0 ppg in and out. Monitor well, Pump dry job 15:00 r 9.50 TRIP DP AF P0H laying down drill pipe. Flush out each joint with H2O and dope thread protectors. Lay down hvy. wall, bit sub, and bit. No gains No losses. Hole slick no drag. 00: t , r 5.50 RURD CSG AF PJSM; rig down rig floor, change out bails, rig up to run 3 1/2 csg, Center rig over hole, Test 2 7/8 -5 1/2 variable rams 2000 psi high, 250 psi low, 5 min each. Report Date: 3/5/2009 Job Category: DRILLING 24 Hr Summary Run 3-1/2' Excape system to 8015'. CBU. R/U to run correlation 1o9. Ops Trouble Start Time End Time Dur(hrs) Ops Code Activity Code Status Code Comment rzx ;' 0.50 RUN CSG AF MWU 3 12" shoe track and check floats(OK). 06'30 5.50 RUN CSG AF Run 3 1/2" 9.3 L -80 8rd EUE casing Escape completion. 4-Zi:0 13.00 1.00 RUN CSG AF PJSM wlcrew coming on tour. Cont. to run 3 12" Escape completion (total 13 / - modules) 11-ill 0.50 CIRC MUD AF - Circ. 1 CSG volume 4.5BPM 285 PSI. 43:30 14 0.50 SAFETY DRIL AF PJSM /JSA for R/U air slips and discuss near miss with safety valve. 44 3 :30 _ 13.50 RUN CSG AF Conl RIH w13 -12 ", 9.3#, L -80, EUE Mod csg w/ 2 control lines & 1 sacrificial line. Ran 234 total jts. Circ 1 csg volume @ 9-5/8" shoe. . 2.00 CIRC MUD AF CBU @ 5 bpm &I350 psi while slowly reciprocate pipe, P/U 95 klbs, S/0 77 klbs. Bottoms up gas = 38 units. 1:1510''' ' "'. 0.50 RURD ELEC AF PJSM w/ Expro wireline crew: R/U to run correlation log. Report Date: 3/612009 Job Category: DRILLING 24 HE Summary Run correlation log. Space out completion. R/U & cement 3 -12" csg in place. R/D cmt equipment. Flush & blow down surface equipment. Centrifuge mud to 9.8 ppg & move to storage. Pickle mud pumps. N/D stack & flow line. Set 3 -12" csg slips w/ 60 klbs net tension on tubing neck. Cut 3 -12" csg & UD stump. Move out stack. Set 3 -12" packoff & test. Ops Trouble I Start Time End Time Dur(hrs) Ops Code Activity Code Status Code Comment 09 09:3[3 3.50 RUNPUL ELEC AF PJSM. R/U electric line. Run GR -CCL correlation log. R/D electric line( -2.8' correction). 09:30 , , -1000 0.50 RURD CMT AF PJSM. R/U cement head and cement line. ;10:00 10:30 0.50 RURD CSG AF R/D casing tongs and slips. 10:30 . '12:00 . 1.50 CLEAN RIG AF Clean and organize rig floor. Mix 90bbls 3%KCL brine in vac truck. PJSM for cement job. •200 13:30 m" 1.50 PUMP CMT AF Pump 3bbls fresh water. Test cement lines to 4000psi. Mix and pump 40bbls MCS-4D 11.5ppg spacer. Mix and pump 1132SXS class "G" cement w /.05 %bwoc static free, .5 %bwoc calcium chloride, 1.2 %bwoc BA -56, .5 %bwoc EC -1, .4% bwoc CD -32, 1 gphs FP -6L, .2% bwoc Sodium Metasilicate and 43.6% fresh water to yield 235bb1s 15.8ppg slurry. 43:30 14 0.50 PUMP CMT AF Displace w/70.4bbls 3%KCL brine. Bump plug wt3200psi 1200psi over last displacement pressure. Bleed off pressure. Floats held. CII' (W 14:UUnrs. 100% returns. Lost 5 bbl mud throughout job. www.peloton.com Report Printed: 3/17/2009 • Page 1 of 2 Maunder, Thomas E (DOA) From: Regg, James B (DOA) Sent: Wednesday, April 01, 2009 10:38 AM To: Maunder, Thomas E (DOA) Subject: RE: KBU 11 -17X (209 -016) Item 1 - we publicly notice the proposed changes to regulations (as does AOGA, of which Marathon is a member), have hearings, and send out electronic copies of final rule to "everyone and their brother" - I know Marathon is on Jody's electronic distribution list; sounds like Marathon's "corrective action" needs to include someone in the company taking responsibility for keeping track of regulatory changes and making sure impacted ops are advised regarding closure of annular, what they describe seems like it could be interpreted either way; I think they are adding unnecessary confusion with interpretations and justifications as being made here; notifying the Commission would be so much easier Item 2 - right on! Jim Regg AOGCC 333 W.7th Avenue, Suite 100 Anchorage, AK 99501 907- 793 -1236 From: Maunder, Thomas E (DOA) Sent: Wednesday, April 01, 2009 10:08 AM To: Regg, James B (DOA) Subject: FW: KBU 11 -17X (209 -016) Marathon's reply; they didn't " reply all" so you didn't get a copy. I'd appreciate your comments. Thanks, From: Tank, Will [mailto:wjtank @marathonoil.com] Sent: Monday, March 30, 2009 12:40 PM To: Maunder, Thomas E (DOA) Cc: Berga, Pete; Anderson, Gene Subject: RE: KBU 11 -17X (209 -016) Tom, I was out Friday, and I didn't have access to my computer to get information I needed to check on this. Item 1 I talked with Pete and unfortunately we were unaware of the requirement of 20 AAC 25.035 (e) (11). Our paper copy of the regs, printed several years ago did not have an (11) with it, so I had to go to your online regs and found it there. Our corrective action there will be to include this requirement along with the other requirements already documented in the drilling prognosis, so our supervisors are aware. In talking to Pete, we feel that the well was not "flowing" during this operation. Gas units from the mud /gas detector had risen from 350 to 3940 units and the decision was made to try and strip this higher gas level out of the mud utilizing the gas buster, since 7/30/2009 Page 2 of 2 • the vacuum degasser is only effective to a certain level of gas. That operation necessitated a closing of the annular to circulate that way. The report notes that once circulation was stopped no pressure buildup in the hole or drill pipe was detected, and there was no mention of the well flowing. We're wondering if this is really a situation that would fall under 20 AAC 25.035 (e) (11), given that circulating gas through the gas buster was done not for well control, but to keep from pumping light mud back down the hole? Please advise. Item 2 We both see that in reports they in fact say the VBR's were tested to the lower pressure and Pete is inquiring with the rig supervisors to see if they could recall why they would have done that. The previous three tests of either the entire stack or single ram test (At BOP install, at 9 5/8 casing ram change, and subsequent change back to VBR's), the test was done to 250 / 3,000. At this point were just not sure, but we'll let you know what we find here. As a corrective action, 1 will add to the drilling prognosis that final ram testing will be based on the AOGCC signed permit, since sometimes my designed BOP test pressure differs from what the AOGCC ultimately requires. It will just be a good reminder for them to look at the signed permit and use that value. Thanks, Will Tank From: Maunder, Thomas E (DOA) [mailto:tom.maunder @alaska.gov] Sent: Friday, March 27, 2009 6:28 PM To: Tank, Will; Berga, Pete Cc: Regg, James B (DOA) Subject: KBU 11 -17X (209 -016) Will and Pete, In the course of my review of well operations associated with the completion and frac sundry submitted by Craig Rang, I have some questions. 1. On March 1 at 0700, it is reported that the well was SI and circulated through the gas buster. Was the Commission notified as required by 20 AAC 25.035 (e) (11)? 2. On March 4 in preparation for running the 3 -1/2" Xscape string, the VBRs are only tested to 2000 psi. The BOP test pressure noted on the PTD is 3000 psi. Why were the VBRs tested to the lower pressure value? I look forward to your reply. Tom Maunder, PE AOGCC 7/30/2009 Operations Summary 021309. Page 1 of 1 Maunder, Thomas E (DOA) From: Skiba, Kevin J. [kskiba @marathonoil.com] Sent: Wednesday, March 18, 2009 10:49 AM To: Maunder, Thomas E (DOA) Cc: Rang, Craig L. Subject: Operations Summary 021309.pdf Attachments: Operations Summary 021309.ZIP «Operations Summary 021309.ZIP» Tom, Attached is the Operations Summary for KBU 11 -17x well. I will contact you to determine if the information that Craig and I provided is sufficient. Thanks, Kevin Skiba Engineering Technician Marathon Oil Company Office (907) 283 -1371 Cell (907) 394 -1332 Fax (907) 283 -1350 r EIS 0c C-`C- Ct.0 %S NO C3CC Ac - 1�CviCrct .trek . 1-3-9!Mall,i-kr P vA r.),v6- .3-00cN 3/18/2009 • • AllAS SARAH PALIN, 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 Craig Rang Senior Completions Engineer Marathon Oil Company PO Box 1949 Kenai AK 99611 -1949 Re: Kenai Gas Field, Beluga & Upper Tyonek Oil Pool, KBU 11 -17x Sundry Number: 309 -095 Dear Mr. Rang: Enclosed is the approved Application for Sundry Approval relating to the above referenced well. Please note the conditions of approval set out in the enclosed form. When providing notice for a representative of the Commission to witness any required test, contact the Commission's petroleum field inspector at (907) 659 -3607 (pager). As provided in AS 31.05.080, within 20 days after written notice of this decision, or such further time as the Commission grants for good cause shown, a person affected by it may file with the Commission an application for rehearing. A request for rehearing is considered timely if it is received by 4:30 PM on the 23rd day following the date of this letter, or the next working day if the 23rd day falls on a holiday or weekend. A person may not appeal a Commission decision to Superior Court unless rehearing has been requested. Sincerely, r 7 Daniel T. Searnount, Jr. 74 4 Chair DATED this/ — day of March, 2009 Encl. • Marathon Oil Company IL Marathon P Alaska Asset Box 1949 Team MARATHON OiI Company Kenai, AK 99611 Telephone 907/283 -1371 Fax 907/283 -1350 March 12, 2009 RECEIVED Mr. Tom Maunder MAR 1 3 2009 Alaska OiI & Gas Conservation Commission 333 W 7 Ave Alaska Oil &` G as cos. Co mmiss i on Anchorage, Alaska 99501 Anchorage Reference: 10 -403 Application for Sundry Approvals Field: Kenai Gas Field Well: Kenai Beluga Unit 11 -17x Dear Mr. Maunder: Enclosed please find the 10 -403 Application for Sundry Approvals for KBU 11 -17x well. KBU 11 -17x is a newly drilled well arranged with an Excape configuration. The thirteen 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 April 15, 2009. Please contact me at (907) 283 -1371 if you have any questions or need additional information. Sincerely, gc\--5 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 bcl`� STATE OF ALASKA ,\ r ' / " . ALA* OIL AND GAS CONSERVATION COMMS ION t ‘6,/ V o APPLICATION FOR SUNDRY APPROVALS /1 20 AAC 25.280 1. Type of Request: Abandon ❑ Suspend ❑ Operational shutdown Perforate El - Waiver ❑ Other ❑ Alter casing ❑ Repair well ❑ Plug Perforations ❑ Stimulate Is , Time Extension ❑ Change approved program ❑ Pull Tubing ❑ Perforate New Pool ❑ Re -enter Suspended Well ❑ 2. Operator Name: 4. Current Well Class: 5. Permit to Drill Number: Marathon Oil Company Development 0 , Exploratory ❑ 209 - 3. Address: PO Box 1949 Stratigraphic ❑ Service ❑ 6. API Number: Kenai Alaska, 99611 -1949 50 133 - 20585 - 00 - 00 - 7. If perforating, closest approach in pool(s) opened by this operation to nearest 8. Well Name and Number: property line where ownership or landownership changes: Spacing Exception Required? Yes El No 0 Kenai Beluga Unit 11 - 17x 9. Property Designation: 10. KB Elevation (ft): 11. Field / Pool(s): ADL - 022330 - 88'. (21' AGL) Kenai Gas Field / Beluga & Upper 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): 8,055 7,919' 7,975' 7,839' NA NA Casing Length Size MD TVD Burst Collapse Structural Conductor 136' 20" 157' 157' 3,060 psi 1,500 psi Surface 1,555' 13 -3/8" 1,576' 1,575' 3,450 psi 1,950 psi Intermediate 5,565' 9 -5/8" 5,586' 5,450' 5,750 psi 3,090 psi Production 7,991' 3 -1/2" 8,012' 7,876' 10,160 psi 10,540 psi Liner Perforation Depth MD (ft): Perforation Depth TVD (ft): Tubing Size: Tubing Grade: Tubing MD (ft): - - 3 L - 80 8,012' 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 ISI BOP Sketch ❑ Exploratory ❑ Development El Service ❑ 15. Estimated Date for 16. Well Status after proposed work: Commencing Operations: April 15 , 2009 Oil ❑ Gas IS Plugged ❑ Abandoned ❑ 17. Verbal Approval: Date: WAG ❑ GINJ ❑ WINJ ❑ WDSPL ❑ Commission Representative: 18. I hereby certify that the foregoing is true and correct to the best of my knowledge. Contact Kevin Skiba (907) 283 -1371 Printed Name Craig L. Rang Title Senior Completions Engineer � Signature Phone (907) 283 -1372 Date . Y l _ . y March 12, 2009 +✓`'°�(J COMMISSION USE ONLY Conditions of approval: Notify Commission so that a representative may witness Sundry Number: 3 big f7 Plug Integrity El BOP Test ❑ Mechanical Integrity Test El Location Clearance Other: `Z�Yr \-- r � cf„. O ,4„.,, \ �!., Subsequent Form Required: \..\b L0-- APPROVED BY Approved by: / COMMISSIONER THE COMMISSION Date: 3 /L / ? / ?' 0 R I G I I\I A L r, 1� � � 4 ;, , ,d Form 10 -403 Revised 06/2006 Submit in Duplicate • 1 KBU 11 -17x Fracture Stimulation MARATNOM • De Summary of Proposal Ke n Bga Unit 7x is a new well drilled to 8055' MD, 9 5/8" intermediate string set a t 55' MD and cased as a 3.5" Monobore Ex capen completion string back to the surface with thirteen Excape Completion modules. T he fracture stimulations consists of these thi rteen ai (13) Excape perforating modules selectively positioned across the gas bearing sa Each 86 module will complete al different pr oduction elu interval 11 -1 with ten feet of perforations followed by individual fracture stimulations i n each interval. Typically, Modue 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 cleanout the welibore 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 the uncertainty of exactly how long KBU 11 -17X will be required to vent to atmosphere, this request is for a maximum vent period of 144 hours with a maximum vent volume during that period of 6 MMCF of methane gas. This volume is minimized due to the utilization of the Excape completion process which enables all intervals of interest to be fracture treated on the same day and 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 March 10, 2009 Permit #: 209 -016 KBU 11 -17x 1 API #: 50- 133 - 20585 -00 -00 Pad 41 -18 Prop. Des: ADL - 022330 439' FNL, 420' FEL, KB elevation: 88' (21 WBS #: DD.08.18948.CAP .DRL Sec. 18, T4N, R11W, S.M. MARATHON CAP Latitude: 60° 26' 38.035" N Longitude: 151° 04' 37.405' W X Conductor Y: 20" K55 133 ppf Spud: 2/16/2009 16:30 hrs Top Bottom MD 0' 157' TD: 3/29/2009 01:30 hrs TVD 0' 157' Rig Released: 3/7/2009 12:00 hrs i . L PA #: Surface Casing 13 -3/8" K -55 68 ppf BTC Top Bottom MD 0' 1,576' TVD 0' 1,575' Top of 3 -1/2" Tubing Cement @ ????• MD h 16" Hole Cmt w/ 410 sks (181 bbls) of 12.0 i • ppg, Type 1 cmt. 29 sks (40 bbls) cmt AI I returned to surface with 100% returns, P Intermediate Casing i 9 -5/8" L -80 40 ppf Butt i Top Bottom MD 0' 5,586' ki ' • TVD 0' 5,450' € a . 12 -1/4" Hole Cmt w/ 327 sks (193 bbls) of 10.5 ppg Class G Lead. Floats held. Lost 12 sks (7 bbls) during cementing process. l.. Production Tubing Chemical Injection Mandrels D 3 -1/2" L -80 9.3 ppf EUE Mod @ 6,645' & 7,702' MD ; , Di Top Bottom r , MD 0' 8,012' 111 t TVD 0' 7,876' +'i D1 p, 8 -1/2" Hole Cmt w/ 1,132 sks (235 bbls) 15.8 ppg, Class G, 100% returns. ii a Excape System Details - 13 Excape modules placed along Excape System Details l with 2 chemical injection mandrels Flappers MD (RKB): 1' - Red contol line fires modules 7 - 13 Module 13 = 6,470' 1 & chemical injection mandrel Module 12 = 6,865' ''!< - Green control line fires Modules 1 - 6 Module 11 = NA Cj & chemical injection mandrel Module 10 = 7,026' 1 Beluga Perfs MD (RKB): Module 9 = 7,146' c Module 13 = 6453' - 6463' Module 8 = 7,251' �ff Module 12 = 6848' - 6858' Module 7 = NA Module 11 = 6897' - 6907' Module 6 = 8,040' Module 10 = 7010' - 7020' Module 5 = 8,130' la Module 9 = 7128' - 7138' Module 4 = 8,480' lal Module 8 = 7233' - 7243' Module 3 = 8,580' L Module 7 = 7285' - 7295' Module 2 = 8,715' Module 6 = 7348' - 7358' Module 1 = NA TD PBTD Module 5 = 7393' - 7403" 8,055' MD 7,975' MD Module 4 = 7472' - 7482" 7,919' TVD 7,838' TVD Module 3 = 7602' 7612" Module 2 = 7824' - 7834" Module 1 = 7888' - 7898" Well Name & Number: Kenai Beluga Unit 11 -17x Lease: Kenai Gas Field Municipality: Kenai Peninsula Borough State: Alaska I Country:I USA Perforations (MD): (TVD): Angle /Perfs: - 0.7 ° Angle @ KOP and Depth: 1.9° / 100' from 2,00' - 3,200' MD Dated Completed: Completion Fluid: Revised by: Kevin Skiba Last Revison Date: 3/11/2009 • • Page 1of� Maunder, Thomas E (DOA) From: Rang, Craig L. [crang @marathonoil.com] Sent: Wednesday, March 18, 2009 10:23 AM To: Maunder, Thomas E (DOA) Cc: Skiba, Kevin J.; Ibele, Lyndon Subject: RE: KBU 11 -17X (209- 016) - -Again Attachments: KBU 11 -17x - 13 Module 11 Frac Design.ppt Tom - this is the second of three e -mails with attachments. This attachment details the eleven (11) frac designs on the thirteen (13) modules. Included are fluid volumes, proppant volumes, types of proppant, ramp schedules, anticipated injection pressures, both at the surface and downhole with their injection rates. Maximum injection pressure is 8500# based upon the tubulars and the wellhead with a built in safety factor. The frac fluid is gelled 4% KCL water with a breaker. BJ Services will provide the fracturing services and can supply the detailed chemical breakdown of additional additives after the frac services are performed if requested. Please contact me if you should have any questions. Regards, Craig m: Skiba, Kevin J. Sen . Tuesday, March 17, 2009 2:43 PM To: Ran., raig L. Subject: . BU 11 -17X (209- 016)- -Again Kevin Skiba Engineering Technician Marathon Oil Company Office (907) 283 -1371 Cell (907) 394 -1332 Fax (907) 283 -1350 From: Maunder, Thomas E (DOA) [mailto:tom.maunder @alaska.gov] Sent: Tuesday, March 17, 2009 11:59 AM To: Skiba, Kevin J. Cc: Ibele, Lyndon Subject: RE: KBU 11 -17X (209- 016) - -Again Kevin, Craig, et al, I need to make further requests regarding information for this well. I realize that in the normal course of submitting the completion report for this well that this information will be provided, however I request that this information be provided now so that it is available as 1 review the sundry application to perforate and frac. Please provide ... 1. The daily operations summary. I am particularly interested in the cementing operations for all casings and the pressure tests conducted on each string. 3/18/2009 • Page 1 of 2 Maunder, Thomas E (DOA) From: Rang, Craig L. [crang ©marathonoil.com] Sent: Wednesday, March 18, 2009 10:07 AM To: Maunder, Thomas E (DOA) Cc: Skiba, Kevin J.; Ibele, Lyndon Subject: RE: KBU 11 -17X (209- 016) - -Again Attachments: KU 11 -17x CBL 16- MAR- 09.pdf Tom - we are currently gathering all the requested information for your review. Since some networks balk at large attachments, we will make approx. three different e -mails with attachments per your request. I have attached the CBL /GR on the 3 1/2" string for your review. The cement looks very good, the wiper plug bumped exactly as calculated and the cement top is right where it should be. Please contact me if you should have any questions. Regards, Craig From: Skiba, Kevin J. Sent: Tuesday, March 17, 2009 2:43 PM To: Rang, Craig L. Subject: FW: KBU 11 -17X (209- 016) - -Again i Kevin Skiba Engineering Technician Marathon Oil Company Office (907) 283 -1371 Cell (907) 394 -1332 Fax (907) 283 -1350 From: Maunder, Thomas E (DOA) [mailto:tom.maunder @alaska.gov] Sent: Tuesday, March 17, 2009 11:59 AM To: Skiba, Kevin J. Cc: Ibele, Lyndon Subject: RE: KBU 11 -17X (209-016) - -Again Kevin, Craig, et al, I need to make further requests regarding information for this well. I realize that in the normal course of submitting the completion report for this well that this information will be provided, however I request that this information be provided now so that it is available as I review the sundry application to perforate and frac. Please provide ... 1. The daily operations summary. I am particularly interested in the cementing operations for all casings and the pressure tests conducted on each string. 2. The bond log of the 3 -1/2" casing string. It is acceptable to provide the information electronically. Thanks in advance. Call or message with any questions. Tom Maunder, PE 3/18/2009 • Page 2 of 2 AOGCC From: Maunder, Thomas E (DOA) Sent: Tuesday, March 17, 2009 11:21 AM To: Kevin Skiba Subject: KBU 11 -17X (209 -016) Kevin, Would you please pass to Craig? I am reviewing the sundry application to perforate and stimulate this well. Would you please provide a detailed procedure for the fracturing operations? If the same general procedure is employed on each interval, it is acceptable to provide it as such. Specific fluid volumes, types, total propant volumes and ramp schedules should be provided for each interval. Anticipated maximum and average injection pressures and rates for each interval should also be provided. This information should be provided for all future stimulation operations. Providing the requested information for this well via email is acceptable. Thanks in advance. Call or message with any questions. Tom Maunder, PE AOGCC 3/18/2009 Marathon Oil Company - Alaska Asset Team : KBU 11 -17X Excape Module Frac Design Summary KBU 11 -17X Excape Frac Design Summary Module No. Clean Fluid 20/40 Sand 12/20 Flex Total No. of (Ws. Proppant Tanks 1 264 30,100 4,300 34,400 0.57 • 2 152 16,190 2,310 18,500 0.33 3 186 28,000 4,000 32,000 0.40 4 196 31,500 4,500 36,000 0.43 5 158 21,175 3,025 24,200 0.34 6 & 7 211 34,475 4,925 39,400 0.46 8 144 18,550 2,650 21,200 0.31 • 9 177 26,250 3,750 30,000 0.38 10 & 11 189 29,750 4,250 34,000 0.41 12 122 12,075 1,725 13,800 0.27 13 114 12,775 1,825 14,600 0.25 Total 1,913 260,840 37,260 298,100 4.16 Marathon Oil Company : KBU 11 -17X Module 1 Frac 1 Tyonek Design Pumping Schedule G \c'C` _ 3 (y3 Prop. Prop Clean Fluid Slurry Dirty Stage Cum. Cum. Cum. Stage Cum. • Design Name Conc. Vol. Name Rate Vol. Time Time Slurry Clean Prop. Prop. (lb /qat) (teal) (bqm) (ciat) (min) (min) (oal) (cal) (Ib) (Ib) 1 ONone 0.00 3300.00 Lightningl 88 80 0 GelSta/G8 231 1 15.00 3300.00 5.24 5.24 3300.00 3300.00 0.00 0.00 2 Badger Sand 20140 2.00 500.00 Lightningl 8 80 0 GelSta/GBW23L_1 15.00 545.35 0.87 6.10 3845.35 3800.00 1000.00 1000.00 3 Badger Sand 20140 4.00 700.00 Lightningl 8 80 0 GelSta/GBNV23L 1 15.00 826.99 1.31 7.42 4672.35 4500.00 2800.00 3800.00 4 Badger Sand 20140 6.00 1000.00 Lightningl 8_I 80 0 GelSta1GBNV23L 1 15.00 1272.13 2.02 9.44 5944.47 5500.00 6000.00 9800.00 5 Badger Sand 20/40 8.00 1200.00 Lightningl 8_I 80 0 GeISta1GBW23L1 15.00 1635.40 2.60 12.03 7579.88 6700.00 9600.00 19400.00 B Badger Sand 20/40 10.00 1500.00 Lightningl 8180 0 GelStalGBN1t23L1 15.00 2180.32 3.46 15.49 9760.19 8200.00 15000.00 34400.00 7 ONane 0.00 2881.00 Lightningl 8_180 4 GelSta1GBW23L1 15.00 2881.00 4.57 20.07 12641.19 11081.00 0.00 34400.00 Totals: 11081.00 12641.19 34400.00 WinParse Version 2007.2.0 Generated 3/13/2009 1:49:35 PM Marathon Oil Company : KBU 11 -17X Module 1 Frac 1 Tyonek Proppant Concentration Proppant Concentration 1Ib412 -I 20.00 Minutes _!. — — — — — D.D TVDM 7649H III 7699H 7749f1 III lus „ 7799H A O O a a x 111111111111110111.111111111111111V 1 1111111111111111111111Mr11111.1111111111111111 0. 0000 0.2250 0.4500 0.6750 0.9000 1.1250 1 WinParse Version 2007.2.0 Generated 3/13/2009 1:49:41 PM Module 1 Frac 1 Tyonek Pumping Graph _ __ GOHFER Bottom Hole Pressure (psi) A GOHFER Surface Pressure (psi) 3OHFER Slurry Rate (bpm) - 13 GOHFER Bottom Hole Prop Conc (lb 'g =al) — A 3OHFER Surface Prop Conc (lb /gal) C B C 8000 - 16.5 —12 7000 — --------- —16.0 —10 6000y { - -1.5.5 —8 - - 5000 -- - - - -- —15.0 —6 - 4000— _ -/ _ -.__ —14.5 —4 3000 — —14.0 —2 - - 2000 13.5 —0 00:00 00:05 00:10 00:15 00:20 00:25 1/1/1970 1/1/1970 Time • Marathon Operations Summary Report MAC &TNDfi Oil Company Well Name: KENAI BELUGA UNIT 11 -17X \ co Qtr /Qtr, Block, Sec. Town, Range Field Name License No. State /Province Country SEC 18 T 4N R 11W KENAI 209016 ALASKA USA Casing Flange Elevation (ft) Ground Elevation (ft) KB- Casing Flange Distance (ft) KB -Ground Distance (ft) Spud Date Rig Release Date 67.00 21.00 2/15/2009 Daily Operations Report Date: 2/13/2009 Job Category: DRILLING 24 Hr Summary MIRU Ops Trouble Start Time End Time Dur(hrs) Ops Code Activity Code Status Code Comment 06:00 12:00 6.00 MOB RIG .AF PJSM w/ Weaver Bros: R/D & load out welding shop. Load out Epoch shack, mud boat, sub base, mud pits & pump room. Remove trip tank & move BOP stack. 12:00 17:00 5.00 MOB RIG AF PTSM: Lower sub base (legs iced up) & prep to move. Load out and move boiler house, generator house & water house. R/D all camp trailers. Load out and move. 17:00 00:00 7.00 MOB RIG AF Set boiler house, generator house, water house, mud pits & pump room (pull together). Set & scope up sub base. Set mud boat & carrier. Fold down wings on sub. Set catwalk. Plug in pits & pump room. Fuel rig generator. Install handrails in pump room & pits. Set exterior lights, trip tank & stand, mechanic shop & stairs, all camp trailers. R/U camp trailers & fill up camp water. Unload trailers. 00:00 0430 4.50 MOB RIG AF PTSM: Spot & level carrier. Pull wires from pump room to generator house. Install turnbuckles & prep derrick to raise. Run water line to rig & fill water tank. 04:30 06:00 1.50 MOB RIG AF PJSM. Crane up derrick house. PJSM. Raise derrick. Set fuel tank. Set wind walls on carrier. Report Date: 2/14/2009 Job Category: DRILLING 24 Hr Summary Rig up rig. Ops Trouble Start Time End Time Dur(hrs) Ops Code Activity Code Status Code Comment 06:00 12:00 6.00 RURD RIG AF Crane in grey iron, stairs, landings, choke house, dog house, flow line, and gas buster. Spot shock hose for pumps. R/U pop -offs. Take on fuel. R/U welding shop. R/U dresser sleeves. Crane in V -door. 12:00 13:00 1.00 SAFETY MTG AF Weekly safety meeting with both drilling crews. 13:00 18:00 5.00 RURD RIG AF PJSM. Set stairs, panic line, floor plates, back wind walls, and cuttings tank. Set centrifuge unit. Plug in carrier, doghouse & choke house. Fill & start up boiler. Install U -tube & choke line to degasser. Unload trailers. 18:00 00:00 6.00 RURD RIG AF PJSM: Scope up derrick. Install carrier bows & tarps. R/U utility lines & drillers console. Install beaver slide & stairs to BOP connex. Dress pumps 1 & 2. Dress shakers w/ 165 mesh screens. Install mud pump pop -offs. Get steam to rig. Work on centrifuge unit. Set matting boards for mud pump #3. 00:00 06:00 6.00 RURD RIG AF PJSM: R/U shock hoses. Install tarps on derrick base, cylinder socks, cellar grating & manual trip tank guage. R/U torque tube. Install T -bar & turnbuckles, and adjust torque tube. Fill water & air lines around rig. Plumb in centrifuge module & install exterior lights. Report Date: 2/15/2009 Job Category: DRILLING 24 Hr Summary Finish rigging up GD -1 over slot KBU 11 -17X. Install starter head & test to 500 psi fl 10 min (ok). N/U diverter system & function test (ok). Rack 5" drill pipe on pipe racks. Notified Jeff Jones - AOGCC for diverter test on 2/13/2009 @ 21:00 hrs. Ops Trouble I Start Time End Time Dur(hrs) Ops Code Activity Code Status Code Comment 06:00 12:00 6.00 RURD RIG AF PJSM: Hang top drive. R/U top drive service loop and kelly hose. Change saver sub and grabber dies. Instal bales and elevators. Set pump house#3. R/U pop -off, suction line and service lines for pump house #3. R/U manual DP tongs and DP spinners. Spot Epoch mud loggers unit and Baker MWD unit. Test run top drive and mud pumps #1 and #2. P/U to drill floor DP slips, sub rack, and DP safety valves. 12:00 16.30 4.50 RURD RIG AF PJSM: R/U derrick board. Thaw cellar. Install choke line. R/U bleeder lines. Troubleshoot & repair carrier engine #1 transmission shifter. R/U Koomey lines to sub base. Mixing spud mud. 16:30 21 00 4.50 NUND ROPE AF PJSM: Cut & dress 20" conductor. Weld out 2" nipple for kill line. Install starter head & test to 500 psi f/ 10 min. 21:00 04:30 7.50 NUND ROPE AF PJSM: N/U diverter stack. R/U kill line & flow line adapter. N/U bell nipple. R/U fill up & bleeder line, trip tank, flow lines & turnbuckles. Install knife valve & koomey lines. Install 16" diverter line & chain down. Finish mixing mud. Set pipe racks. www.peloton.com Report Printed: 3/17/2009 • a ,; ' . Marathon Operations Summary Report KUS.:re,f, 0i1 Company Well Name: KENAI BELUGA UNIT 11 -17X Casing Flange Elevation (ft) Ground Elevation (ft) KB- Casing Flange Distance (ft) KB- Ground Distance (ft) Spud Date Rig Release Date 67.00 21.00 2/15/2009 Casing Flange Elevation (ft) Ground Elevation (ft) KB- Casing Flange Distance (ft) 'KB- Ground Distance (ft) Spud Date Rig Release Date 67.00 21.00 2/15/2009 Ops Trouble I Start Time End Time Dur(hrs) Ops Code Activity Code Status Code Comment 04:30 05:30 1.00 TEST BOPE AF Function test diverter & test Koomey performance (ok). 05:30 06:00 0.50 PULD DP AF - PJSM: Rack 52 jts 5" drill pipe on pipe racks. RN to P/U drill pipe. Daily Operations Report Date: 2/16/2009 Job Category: DRILLING 24 Hr Summary P/U 16" bit and bit sub. Cleanout conductor F/22' to 65'. LID bit and bit sub. P/U 52 Jnts 5" DP and rack back. P/U 21 jnts HWDP and 6 3/4" jars and rack back. P/U 16" bit, motor, stabilizer, pony collar and clean conductor to 157'. Drill F /157' to 223'. Circ hole clean. POOH to 44'. P/U remaining directional BHA components & shock sub. Wash down f/ 154' -223'. Drill 16" surface hole f/ 223-845'. Ops Trouble Start Time End Time Dur(hrs) Ops Code Activity Code Status Code Comment 06:00 07:30 1.50 PULD BHA AF PJSM. P/U and M/U 16" bit and bit sub w /float for cleanout. RIH w /5" DP and tag @ 22'. 07:30 08:30 1.00 DRILL ROT AF Cleanout 20" conductor F/22' to 65'. 08:30 09:30 1.00 TRIP DP AF POOH and LID 16" bit and bit sub. Prep to P/U 5" DP on the rack. 09:30 12:00 2.50 PULD DP AF PJSM. P/U 52 jnts 5" DP and rack back in the derrick. 12:00 14:00 2.00 PULD DP AF PJSM. P/U 21 jnts 5" HWDP and 6 3/4" jars and rack back in the derrick. 14:00 15:30 1.50 PULD BHA AF PJSM. P/U and M/U 16" bit, motor, 15 3/4" stab, and pony monel collar 15:30 16:30 1.00 DRILL ROT AF Spud well at 15:30hrs 2/15/2009. Clean 20" conductor F/65'to 157'. 300- 4000PM, 300 -350 psi, 50RPM, 1 -2K WOE. 16:30 18:00 1.50 DRILL ROT AF - Drill 16" vertical hole F/157' to 223', 300- 4000PM, 300- 350psi, 5ORPM, 1 -2K WOB, ART= 1.1 hrs. 18:00 19:00 1.00 CIRC MUD AF CBU & con't circ until hole clean @ 410 gpm w/ 60 rpm's. Large amounts of gravel unloaded across shakers. 19:00 19:30 0.50 TRIP DP AF PJSM: POOH f/ 223' -44'. 19:30 21:00 1.50 PULD BHA AF P/U remaining directional BHA components: MWD, filter sub, (2) NM CSDP's, shock sub & (2) crossover subs. Scribe motor /MWD. 21:00 21:30 0.50 CIRC MUD AF Wash down f/ 154' -223'. 21:30 00:00 2.50 DRILL ROT AF Drill 16" vertical hole f/ 223-392' @ 410 gpm, 750 psi, wob 5 -15 klb, 60 rpm, tq 1 kft -Ibs, p/u 40 klb, s/o 40 klb, rot wt 40 klb. ART: 2.3 hrs. 00:00 06:00 6.00 DRILL ROT AF PJSM: Drill 16" vertical hole f/ 392'-845'@ 475 gpm, 1100 psi, wob 5 -20 klb, 75 rpm, tq 1 -2 kft-lbs, p/u 55 klb, s/o 55 klb, rot wt 55 klb, ART: 3.6 hrs, AST: 0.5 hrs. Report Date: 2/17/2009 Job Category: DRILLING 24 Hr Summary Drill 16" hole F/845'to 1588'. Pump sweep and circ. the shakers clean. POOH to the CSG shoe. RIH to 1570'. Wash down to 1588'. Pump hi -vis sweep & conl circ until hole clean. Monitor well (ok). Pump dry job & POOH. UD BHA. Clean rig floor. R/U to run 13 -318" csg. Ops Trouble I Start Time End Time Dur(hrs) Ops Code Activity Code Status Code Comment 06:00 10:30 4.50 DRILL ROT AF Drill 16" vertical hole F/845'to 1160' . ART= 2.8hrs AST =.4 hrs. 600GPM, 1600psi, 75RPM, 3K Ft -lb TQ. 10:30 12:00 1.50 DRILL ROT AF Drill 16" vertical hole F /1160'to 1257'. Control drill w /450GPM due to pump#1 being taken out of service for an emergency gear lube change. ART= 1.0hrs, P/U 65K, 5/0 65K, Rot 65K, 1 -2K Ft -lb TO, 900psi, 80RPM, 3K Ft -lb TO. 12:00 17:00 5.00 DRILL ROT AF Drill 16" vertical hole F /1257'to 1588 . Control drill w /450GPM due to pump#1 being taken out of service for an emergency gear tube change. ART= 3.7hrs AST= .3hrs, P /U73K, 5/073K, Rot73K, 450GPM, 1100psi,1 -2K ft-IbTQ, 80RPM, 1 -2K Ft -lb TO. 17:00 19:00 2.00 CIRC MUD AF Pump 40 bbl hi -vis sweep w/ nut plug & con't circ until shakers clean. (CBUX2) 450GPM, 800psi ,80RPM. Saw nut plug at shakers 1000 strokes early. 19:00 21:00 2.00 TRIP WIPR AF PJSM: POOH f/ 1588' -150' w/ SLM for wiper trip. No depth corrections. No tight spots. Hole slick. 21:00 22:00 1.00 TRIP WIPR 'AF I PJSM: RIH f/ 150'- 1570'. Wash down f/ 1570' - 1588' No fill on bottom. No ledges. Hole in good shape. 22:00 00:00 2.00 CIRC 'MUD AF Pump 40 bbl hi -vis sweep w/ nut plug & circ until hole clean @ 450 gpm & 80 rpm's. Nut plug returned to surface 600 strokes early. Monitor well (static). Pump dry job. 00:00 02:00 2.00 TRIP DP AF PJSM: POOH f/ 1588' -154'. No tight spots. Hole slick. 02 :00 03:00 1.00 PULD BHA AF PJSM: UD shock sub & (2) crossovers. Rack back std NMDCs. LID filter sub, MWD, NM X10, pony collar, string stab, mud motor & bit. Note: Seals in cone #3 still effective but not very tight. Would not recommend rerunning bit. 03:00 03:30 0.50 CLEAN RIG AF Blow down mud lines. Clear & clean rig floor. www.peloton.com Report Printed: 3/17/2009 0 S ' , Marathon Operations Summary Report N` LR &TNON Oil Company Well Name: KENAI BELUGA UNIT 11 -17X Casing Flange Elevation (ft) Ground Elevation (ft) KB- Casing Flange Distance (ft) KB- Ground Distance (ft) Spud Date Rig Release Date 67.00 21.00 2/15/2009 4/30!2009 Ops Trouble Start Time End Time Dur(hrs) Ops Code Activity Code Status Code Comment 03:30 06:00 2.50 RURD CSG AF Rig up to run 13 -3/8" casing. 0/0 bails & elevators. R/D spinners. Switch rig tongs. Daily Operations Report Date: 2/18/2009 Job Category: DRILLING 24 Hr Summary R/U to run 13 -3/8" csg. Run 34 jts 13 -38" 68 # K -55 csg to 1576'. R/U & RIH w/ 5" inner cmt string to 1536'. Stab -in & circ. Cmt 13 -3/8" csg in place. R/D cmt equipment. Sting out. UD 2 pups & 2 jts DP. Install wiper plug & sponge ball. CBU. Flush stack & mud lines. POOH & UD stinger assy. R/D false rotary. Lift stack. Make rough cut on 13 -318" csg. N/D diverter system. Remove starter head. Cut 20" csg. Ops Trouble Start Time End Time Dur(hrs) , Ops Code Activity Code Status Code Comment 06:00 06:30 0.50 RURD CSG AF Cont. to R/U CSG tools. 06:30 07:00 0.50 SAFETY MTG AF Pre -job safety meeting for running 13 3/8" CSG. Discuss JSA for running casing. 07:00 08 1.00 RUN CSG AF M/U 13 3/8" shoe track and bakerlok. Test floats(OK). 08:00 11:00 3.00 RUN CSG AF Run j3 318" 68PPF K -55 Butt CSG (total 34ints). Shoe O. 1576' and float collar a(7 1536'. P/U 110K 3/0 85K. Land CSG out on base plate. 11:00 13:00 2.00 RUN CSG AF Change to short bales and DP elevators. R/U false rotary for running 5" DP inner string. 13:00 15:30 2.50 RUN CSG AF M/U stab -in sub on a 5' pup joint. Attach 5" DP centralizer on first tool joint. RIH w /5" DP. Space out and stab into float collar @ 1536'. 15:30 16.30 1.00 CIRC MUD AF Circulate CSG @ 200GPM 180 psi. PJSM for cementing. 16:30 18:00 1.50 PUMP CMT AF Pump 40bbls 8.4ppg spacer w /rig pumps. Mix and pump 410SXS Type 1 cement W122% LW -6, 20% MPA -1 , 2% CaCI, 1% SMS, .3% CD -32, .05% Static Free, .4% KCL, 1 ghs FP -6L to yield 181bbls 12 ppg slurry. Displace w/23bbls 9.3ppg mud. 29bbls cement to surface w /100% returns during job. CIP @ 18:00hrs. Bleed off cmt line & check floats (ok). 18:00 18:30 0.50 PUMP CMT AF R/D circ head. Sting -out of float collar. POOH f/ 1536' -1460' while UD 2 pups & 2 singles 5" dp. Install wiper dart into dp box & sponge ball into top drive pin. Install 13 -3/8" circ nipple. 18:30 19:30 1.00 CIRC MUD AF Circ 1 annular volume @ 158 gpm. No cmt returns. 19:30 20:000 0.50 PUMP TRET AF Flush stack & mud lines with retarded water. 20:00 21:30 1.50 TRIP DP AF POOH f/ 1460' -5'. UD 5' pup, centralizer & stab -in tool. Flush overhead lines in pits. 21:30 00:00 2.50 WAITON CMT AF WOC while: Blow down mud lines. Clean & organize rig floor. Flush #3 mud pump. Change oil in carrier #2 engine. Rinse hanson tank. 00:00 02:00 2.00 NUND POPE AF PJSM. N/D diverter line, knife valve & hydraulic control lines. RID bleeder, fill up & trip tank lines. R/D turnbuckles & trip tank actuator valve. Hotbolt diverter stack & prep to raise. Empty & clean pits. 02:00 - 03:00 - 1.00 NUND POPE AF Lift stack, make rough cut on 13 -3/8" csg & UD stump Change oil in carrier engine #1. 03:00 04 :00 1.00 NUND ROPE AF N/D bell nipple, flow line extentiorl & diverter stack. Move out stack. 04:00 06:00 2.00 NUND ROPE AF PJSM: Remove starter head & cut 20 ". Make final cut on 13 -3/8" csg. Report Date: 2/19/2009 Job Category: DRILLING 24 Hr Summary Final cut 13 318" CSG. Install wellhead. N/U spacer spool. N/U BOPE.Test BOP, Test 13 -3/8 csg to 1500 psi f/ 30 min. no leaks.Slip dreg. line, Serv. rig, P/U 5" DIP Ops Trouble I Start Time End Time Dur(hrs) Ops Code Activity Code Status Code Comment 06:00 08:30 2.50 NUND WLHD AF Make final cut on 13 3/8" CSG and dress cut. 08:30 11:30 3.00 NUND WLHD AF PJSM. Install Vetco 13 3/8" sliploc bottom X 13 518" 5000psi flq top multibowl . wellhead. Test to 1500psi /10min. 0/0 clutch discs and friction plates and shim same on drawworks clutch. Fill pits 1 and 2 with used 9.5ppg flopro mud F /storage tanks. 11:30 13:00 1.50 NUND ROPE AF - PJSM. Spot BOP stack near sub base. N/U 13 5/8" 5M X 36" spacer spool. Instal flow line extension. 13:00 18:00 5.00 NUND ROPE AF PJSM. N/U S,Rd,A 13 5/8" 5M BOP stack. N/U kill and choke lines. Complete electrical an p um ing on centre uge unit. 18:00 19:30 1.50 NUND POPE TA MSFB PJSM. Repair flowline adapter. www.peloton.com Report Printed: 3/17/2009 • ! Marathon Operations Summary Report Ma ` .) i p Oil Company Well Name: KENAI BELUGA UNIT 11 -17X Ops Trouble Start Time End Time Dur(hrs) Ops Code Activity Code Status Code Comment 19:30 22:30 3.00 TEST BOPE AF Test 2 7/8" X 5 1/2" 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 25013000psi Tested all gas alarms and PVT system. Performed koomey performance test. Test witnessed waived by Jim Regg @1200 hrs. 2/17/09, 250 psi low, 3000 psi high ram test, 250 psi low, 2500 psi high Annular test. All test held 5 min. 19:00hrs Begin to run centrifuge to reduce 9.5ppg mud from storage tanks. Centrifuge output mud wt 9.1 ppg. 22:30 23:00 0.50 RUNPUL WBSH AF PJSM; Install wear bushing, ID =12 3/8 ID. 23:00 00:00 1.00 TEST CSG AF PJSM; R/U and test 13 3/8 csg., 1500 psi fJ 30 min.No leaks. 00:00 00 0.50 TEST CSG AF PJSM; RJD test equip., blow down top drive and mud lines. 00:30 01:30 1.00 SLPCUT DUN AF PJSM; Slip 33' drilling line onto drum, reset crown- o- matic. 01:30 02:00 0.50 SERVIC RIG 'AF PJSM; Service rig and equip., grease crown. 02:00 06:00 4.00 PULD DP AF PJSM; Pick up and drift 5 "- 19.5# S -135 4 1/2" IF drill pipe, stand back in derrick. (48) joints. Daily Operations Report Date: 2/20/2009 Job Category: DRILLING 24 Hr Summary Pill 5" DP. P/U Bit and BHA. RIH W /5" DP. Drill shoe track and shoe @ 1576'. Clean old hole to 1588'. Drill new hole to 1608'.Displace to Flopro mud. Perform FIT to 13ppg. Drill F/1608'- 2443' Ops Trouble I Start Time End Time Dur (hrs) Ops Code Activity Code Status Code Comment 06:00 09:30 3.50 PULD DP AF Cont. to P/U 5" DP(total 108jnts). 09:30 10:30 1.00 PULD BHA AF PJSM. Layout BHA. Shovel snow and spread sand. 10:30 12:00 1.50 PULD BHA AF PJSM. P/U 12 1/4" bit and BHA. 12:00 13:30 1.50 PULD BHA AF PJSM. Cont. to P/U BHA. Dress threads on monel X10 below CSDP. 13:30 14:00 0.50 TRIP DP '.AF RIH w /5" HWDP. Test MWD. Cont. RIH w /5" DP. Wash last 60' down and tag cement @ 1529'. 14:00 15:30 1.50 DRILL CMT AF Drill FC @ 1536'. Drill cement and shoe @ 1576'. Clean old hole to 1588'. 15:30 16:00 0.50 DRILL ROT AF Drill new hole F /1588'to 1608'. 16:00 16:30 0.50 CIRC MUD AF Displace hole w/9.Oppg Flopro mud. 16:30 17:30 1.00 TEST LOT AF Perform fit test to 13PPG EMW(TMD 1576', MW =9.0, Press= 330psi). 17:30 00:00 6.60 DRILL ROT AF Drill vertical 12 1/4 hole section fJ 1608'- 2022' P/U wt.80klbs SJO 80klbs Rt. Wt. 80klbs. Tq. 1 -2 ft-lb 410gpm 700psi. 7- 10wob. 70rpm. Static losses to hole 0 Dynamic losses 0 bbls per hr. Ast= 0 hr Art = 4.7h Max gas =16 UNITS 00:00 06:00 6.00 DRILL ROT AF Drill 12 1/4 build section fJ 2022'- 2443 ' P/U wt.90klbs 3/0 90klbs Rt. Wt. 90klbs. Tq. 2 -3 ft-lb 450gpm 800psi. 7- 15wob. 70rpm. Static losses to hole 0 Dynamic losses 0 bbls per hr. Ast= 1.0hr Art = 2.2hr. Max gas =16 UNITS Report Date: 2/21)2009 Job Category: DRILLING 24 Hr Summary Drill F/2443' to 3643 ", Circ. Hi -visc. sweep, check flow, POOH to shoe at 1500', Serv. rig, RIH t/ 3582' wash down to 3643', drill f/ 3643' to 3770' Ops Trouble Start Time End Time Our(hrs) Ops Code Activity Code Status Code Comment 06:00 12.00 6.00 DRILL ROT AF Drill 12 1/4" build section F/2443' to 2848'. ART= 1.4hrs AST= 2.2hrs P/U 98K 3/0 95K Rot 95K 400- 450GPM 850psi- 950psi 80RPM 5 -15WOB T03 -4K Ft -lb. Static losses 1.5 -2BPH. 12:00 22 :30 10.50 DRILL ROT AF - PJSM. Drill 12 114" build section F/2848' to 3643'. ART= 5.6hrs AST= 1.5hrs P/U 115K 5/0 105K Rot 110K 385- 430GPM 85D- 1000psi 80RPM 5 -15WOB TQ 2 -3K Ft -lb. Static losses 1.5-2BPH. 22:30 00:00 1.50 CIRC MUD AF PJSM; Circ. hole clean for wiper trip to shoe, pump 40 bbl. Hi -vise. sweep. Sweep brought back minimal cuttings. 00:00 01:00 1.00 TRIP WIPR AF PJSM; Check flow static losses 1.5BPH, pull 5 stands, pump dry job. 01:00 02:00 1.00 TRIP WIPR AF PJSM; POOH to shoe at 1576' for wiper trip.No issues hole slick. No gains no losses. 02:00 03:00 1.00 SERVIC RIG AF PJSM; Blow down top drive, service rig and equip., change gear lube in right angle drive on carrier, fix hyd. leak on red tugger. 03:00 04:30 1.50 TRIP WIPR AF PJSM; RIH to 3582' and wash down to 3643', no fill. 04:30 06:00 1.50' DRILL ROT AF PJSM.; Drill 12 1/4" build section F/3643' to 3770'. ART= 1.10hrs AST =Ohrs P/U 115K 3/0 105K Rot 110K 385- 430GPM 850- 1000psi 80RPM 5 -15WOB TQ 2 -3K Ft -lb. Static losses 1.5- 2BPH.Max. Gas =17 units www.peloton.com Report Printed: 3/17/2009 • Marathon Operations Summary Report gApATNON _.Oil Company Well Name: KENAI BELUGA UNIT 11 -17X Daily Operations Report Date: 2122/2009 Job Category: DRILLING 24 Hr Summary Drill F/3770' to 5130' Ops Trouble I Start Time End Time Dur(hrs) Ops Code Activity Code Status Code Comment 06:00 12:00 6.00 DRILL ROT AF Drill 12 1/4" drop section F/3770' to 4160. ART= 3.2hrs AST =.9hrs P/U 125K 5/0 110K Rot 120K 400- 440GPM 900- 1100psi 80 RPM 5 -15WOB T04 -5K Ft -lb. Static losses 3- 3.513PH Dynamic losses 5 -10 BPH. 12:00 18:00 6.00 DRILL ROT AF PJSM. Drill 12 1/4" drop section Ff4160' to 4529'. ART= 2.4hrs AST= 1.8hrs P/U 130K Sf0 115K Rot 125 K 430 GPM 1100 psi 80 RPM 15K WOB TO 4 -5K Ft -lb. Static losses 3.5 -4.0 BPH Dynamic losses 5 -10 BPH. 18:00 00:00 6.00 DRILL ROT AF PJSM. Drill 12 1/4" drop section F/4529' to 4870'. ART= 3.6hrs AST= 1.9hrs P/U 140K 5/0 120K Rot 132 K 430 GPM 1100 psi 80 RPM 15K WOB TO 4 -5K Ft -lb. Static losses 2 -3 BPH Dynamic losses 5 -10 EPH.Max.= 60 units. 00:00 06:00 6.00 DRILL ROT AF PJSM. Drill 12 1/4" drop section F/4870' to 5130'. ART= 1.8hrs AST= 2.4hrs P/U 150K Sf0 125K Rot 152 K 430 GPM 1100 psi 80 RPM 15K WOB TO 4 -5K Ft -lb. Static losses 2 -3 BPH Dynamic losses 5 -10 BPH.Max.= 95 units. Report Date: 2/23/2009 Job Category: DRILLING 24 Hr Summary Drill F/5130' to 5500'. Circ B/U for samples. Drill F/5500' to 5600'., Pump hi visc. sweep,CBU 2X, Ck. flow, POOH, serv. rig, RIH, Pump hi visc sweep ,CBU. Ops Trouble Start Time End Time Dur(hrs) Ops Code Activity Code Status Code Comment 06:00 12:00 6.00 DRILL ROT AF Drill 12 1/4" drop section F /5130'to 5370' . ART= 4.6hrs AST= 1.10hrs P/U 155 K 5/0 130 K Rot 140 K 430GPM 1350psi 80 RPM 20- 25KWOB T05 -6K Ft -lb. Static losses 4BPH Dynamic losses 5- 10BPH. 12:00 15:00 3.00 DRILL ROT AF PJSM. Drill 12 1/4" vertical section Ff5370 to 5500' ART =2.1 hrs P/U 157 K 5/0 130 K Rot 145 K 430GPM 1350psi 80 RPM 20- 30KW08 TQ5 -6K Ft -lb. Static losses 48PH Dynamic losses 5- 10BPH. 15:00 16:30 1.50 CIRC MUD AF Circ. samples @ 5500' 440GPM 1100psi 8ORPM. 16:30 18:30 2.00 DRILL ROT AF Drill 12 1/4" vertical section Ff5500 to 5600' . ART= 1.30hrs RN 157 K 3/0 130 K Rot 145 K 430GPM 1350psi 80 RPM 20- 30KWO13 T05 -6K Ft -lb. Static losses 4BPH Dynamic losses 5- 10BPH. Increase lubricant to 3 %. Max. gas =95 units. 18:30 21:30 3.00 CIRC MUD AF Pump 50bbI Hi -vis sweep and Circ. shakers clean c7. 5600'. 440GPM 80RPM 1000psi Circ. 2 X bottoms up. 21:30 01:30 4.00 TRIP WIPR AF PJSM; Check flow, POOH f /5600'to 1500', Hole slick no issues, Hole took 3.5 bbls. 01:30 02:30 1.00 SERVIC RIG AF PJSM; Service Top drive and carrier. 02:30 05:30 3.00 TRIP WIPR AF PJSM; RIH f/1500' to 5600',Wash and ream f/5417'- 5600', lost total of 10 bbls fluid during trip. 05:30 06:00 0.50 CIRC MUD AF Pump hi visc. sweep, circ. bottoms up. 440GPM, 80 RPM, 1170 psi. Report Date: 2/24/2009 Job Category: DRILLING 24 Hr Summary Pump a hi -vis pill and circ. the shakers clean. POOH to 4400'(multiple tight spots). RIH to 5600'. Wash last stand down. Circ. clean. POOH,L /D BHA, Inspect monel connections, Pull wear ring, Change out pipe rams, R/U to run 9 518 csg. Ops Trouble Start Time End Time Dur(hrs) Ops Code Activity Code Status Code Comment 06:00 08:30 2.50 CIRC MUD AF Cont. to circ. clean 450GPM 80RPM 1100psi. String LCM pill into active system while circ. Dynamic losses 3 -4BPH. Static losses 3BPH. 08:30 10:30 2.00 TRIP DP AF PJSM. POOH to 4400'(tight @ 5490', 5473', 5448', 5385', 5381', 5375', 5365', 5340', 5296', 5289', 5249', 5233', 5044', 4981', 4759). 10:30 11:30 1.00 TRIP DP AF RIH and tag up @ 5550'. Wash F/5550' to 5600'. 11:30 12:30 1.00 CIRC MUD AF Circ. clean 450GPM BORPM 1100psi. 12:30 13:30 1.00 TRIP DP AF PJSM; POOH to 4890'. Tight spot @ 5250(25K over) work tight spot. Cont. POOH. 13:30 19:00 5.50 TRIP DP - AF Pump dry job and cont. POOH, No correction with SLM. 19:00 2230 3.50 PULD BHA AF PJSM. Lay down 12 1/4" Directional assy., Inspect all connections, no bad thread issues.Well took 2 bbls. hr. on trip out. Losses 2BPH while POOH. 22:30 23:00 0.50 RUNPUL WBSH AF PJSM. Make up runnig tool and retrieve wear ring. inspect wer ring no unusual wear. 23:00 00:00 1.00 TEST WLHD AF PJSM; Pick up and check casing hanger. www.peloton.com Report Printed: 3/17/2009 • Q Marathon Operations Summary Report Oil Company Well Name: KENAI BELUGA UNIT 11-17X Ops Trouble Start Time End Time Dur(hrs) Ops Code Activity Code Status Code Comment 00:00 01:00 1.00 NUND BOPE AF PJSM. Change out top set rams to 9 5/8" csg. ram. 01:00 02:00 1.00 TEST BOPE AF PJSM. Rig up and test 9 5/8" rams, 250 psi low, 3006 psi high, for 5 min., no leaks. Repair off driller side manridder. 02:00 05:00 4.00 RURD CSG AF PJSM. Swap out rig tongs, remove bails, and elavators, move torque tube back, rig up stabbing board, make up fill up tool. Losses 2BPH while R/U to run CSG. Daily Operations Report Date: 212512009 Job Category: DRILLING 24 Hr Summary Cont. to R/U CSG tools. Bakerlok shoe track and check floats. Run 9 5/8" CSG., Wash down f /5554'- 5585',CBU,Pump cmt., RID cmt hd. ,R /U Rig floor f/ drill pipe, install pack -off f/ 9 5/8 csg. hanger. Ops Trouble Start Time End Time Dur(hrs) Ops Code Activity Code Status Code Comment 06:00 0700 1.00 PURE/ CSG AF Cont. to R/U CSG tools. 07:00 07:30 0.50 SAFETY MTG AF Safety meeting for running casing. Review JSA and discuss hazards and how to mitigate the hazards. Review plan for running casing. 07:30 09:00 1.50 RUN CSG AF P/U and Bakerlok the shoe track. Engage circulating tool and circulate through the shoe track. Check floats(ok). 09:00 11:00 2.00 RUN CSG AF Cont. Run 9 5/8" 4OPPF L -80 Butt CSG to 1550'(13 318" CSG shoe). 11:00 12:00 1.00 CIRC MUD AF Circ. CSG 200GPM. PJSM. 12:00 17:00 5.00 RUN CSG AF Cont. to Run 9 5/8" CSG to 5550. M/U 13 1/2" X 9 5/8" fluted hanger assy, running tool and landing joint. Tag bridge @ 5554'. 17:00 18:00 1.00 RUN CSG AF Engage Weatherford washdown tool and wash 9 5/8" CSG F/5554' to 5586' 200GPM 500- 745psi. Land CSG out on hanger(total 137ints). UP 215K DN 155K Shoe a 5586' and FC(a75502'. Lost 5bbls mud while running CSG. 18:00 19:00 1.00 CIRC MUD AF Circ. CSG 200GPM 390psi.Circ. 1 112 times csg. volume. Lay down csg. slips, tongs, and tools. Install plugs in cmt. hd. 19:00 20:30 1.50 RURD CMT AF PJSM; With BJ cementers, lay down casing elevators, rig down La Fluer tool, blow dawn top drive and mud lines, rig up, make up cmt. lines. 20:30 00:00 3.50 PUMP CMT AF Pump 5 bbls. ahead, test lines to 3000 psi. Pump 20 bbls Sealbond spacer @ 10 ppg.,(Shut down drop bottom plug) Mix and pump 193 bbls. cement @10.5 ppg.(327 sacks G cement +47 %LW -6 + 15% BA -90 + 1% CD -32 +1.2% FL -63 + 0.5% SMS + 0.05% Static free + 1 ghs FP -6L) Drop top plug pump 5 bbls. water, displace with rig pump. Pump 416 bbls mud, bump plug, pressure 1000 psi over circ pressure, 1430 psi, hold 5 min. bleed off and check floats. Floats held. CIP at 2340 hrs. Lost 7 bbls. during cement job. 00:00 01:00 1.00 RURD CMT AF PJSM; Rig down cmt. lines, blow down mud lines, 01:00 05:00 4.00 RURD CSG AF PJSM; Rig down csg. tools, rig up for drill pipe, adjust top drive rail, install pack -off for 9 5/8 csg. hanger.Test to 5000 psi did not hold. Pull pack off change out seals. Install pack off, retest to 5000 psi held for 10 min. no leaks. 05:00 06:00 1.00 NUND ROPE AF PJSM; Change bails on top drive, change 9 518 rams to 2 7/8 x 5 1/2 varible rams. Report Date: 2/26/2009 Job Category: DRILLING 24 Hr Summary Test BOPE,set wear ring, adjust top drive rail, M/U BHA, Measure and P/U 68 jts.5" Drill pipe, Test csg. to 1500 psi f130 min., Drill out shoe track,Drill f/5600- 5620',CBU, FIT test to 12# EMW, Drill f/5620'-5725' Ops Trouble Start Time End Time Dur(hrs) Ops Code Activity Code Status Code Comment 06:00 08:00 2.00 RURD OTHR AF Set Tongs and Drillpipe spinners .Rig up floor 08:00 09:30 1.50 NUND BOPE AF Change Out 9 5/8 casing rams to 2 7/8X 5" variable rams. Shell test doors. 09:30 14:00 4.50 TEST BOPE 'AF PJSM; Make Up test joint set test pluq.Test BOPE and all related componants 250/3000psi/ 5min test. Test lel and H2s alarms and lights. Test PVT and Flow alarms. Preform accumulator drawdown test. Note 2 7/8" x 5" variable rams failed test replace pack off rubbers and re -test Rams . Test Good. Blow down lines . Rig down test joint. 14:00 14:30 0.50 RUNPUL WBSH AF Make up wear bushing tool, set wear bushing. 14:30 15:00 0.50 REPAIR RIG AF Adjust torque tube to center top drive over well center 15:00 18:00 3.00 PULD BHA AF PJSM; Pick up and make up BHA #4 8 1/2 bit Motor, Stab, pony collar, MWD, 2x monels Xover 17 Hwdp, Jars and 4 HWDP. RIH pulse test MWD. 18:00 23:00 5.00 TRIP DP AF PJSM; RIH P/U drift 68Jts 5 " drillpipe. Continue RIH out of mast to 5380' 23:00 00:30 1.50'TEST CSG AF Circ. condition mud, Test csq.1500 psi for 30 min. No leak off.Blow down choke lines, and manifold. www.peloton.com Report Printed: 3/17/2009 • • Marathon Operations Summary Report n iumo. ,. R. Oil Company Well Name: KENAI BELUGA UNIT 11 -17X Ops Trouble I Start Time End Time Dur(hrs) Ops Code Activity Code Status Code Comment 00:30 02:30 2.00 DRILL CMT AF PJSM; RIH tag landing collar at 5500', drill out shoe track, Up wt. =150K Dn. wt.= 125K Drill 20' New hole for FIT test,f /5600' -5620' 02:30 03:00 0.50 CIRC MUD AF Circ. bottoms up, pull one stand for FIT test to 5536'. 03:00 03:30 0.50 TEST LOT AF PJSM; Perform FIT test @5463' TVD with 9.5# mud, test pressure 711 psi, 12.0# EMW. 03:30 04:00 0.50 BLOWDN EQIP AF Blow down kill, choke line, and manifold. 04:00 04:30 0.50 TRIP DP AF PJSM;RIH f/5536' to 5620', Get drilling perameters, slow pump rate. 04:30 06:00 1.50 DRILL ROT AF Drill 8 1/2' hole f/5620'- 5725'Up wt. =160K Dn wt. =125K Rt wt. =140K Bit wt. =5 -9K, 6 -8K tq. 65 RPM No gains no losses. Daily Operations Report Date: 2/27/2009 Job Category: DRILLING 24 Hr Summary Drill Ahead, f15725' -6925' CBU raise mud wt. f/9.4# to 9.7# POOH f/ wiper trip to shoe,5585' ,RIH, Drill f/6925' -6950' Ops Trouble Start Time End Time Our (hrs) Ops Code Activity Code Status Code Comment 06:00 12:00 6.00 DRILL ROT AF Drill 8 1/2 production hole section f 5725-6228' @ 525gpm 1550psi wob 8- 10k1b, 85rpm, tq 8- 9.5kft-lbs ,p /u 165kIbs ski 130klbs, rt.wt.140klbs. ART= 4.9hr AST =0 No Gain /loss. Run Centrifuge. Mud wt 9.4 Max gas 56units 12:00 2130 9.50 DRILL ROT AF Drill 8 1/2 production hole section f 6228' -6925' @ 525gpm 2000psi wob 8- 10k1b, 82rpm, tq 8- 9.5kft -lbs ,p /u 185klbs sic) 130klbs, rt.wt.163klbs. ART= 6.4hr AST =0 No Gain /loss. Run Centrifuge. Mud wt 9.4 Max gas 270units 21:30 23:30 2.00 CIRC MUD AF PJSM; Circ. bottoms up for wiper trip, had from 190 to 270 units gas, change mud wt. from 9.4 #to 9.7 #. Circ. two bottoms up. 23:30 03:00 3.50 TRIP WIPR AF PJSM; Check well for flow, POOH f/ 6925' -6630' pull thru tight spots from 6630' to 6228'. Start backreaming and circ.out, all the way to shoe at 5585'. No gains No losses 03:00 04:00 1.00 SERVIC RIG AF PJSM; Serv. rig and top drive.Change hose on dennison pump. 04:00 05:00 1.00 TRIP WIPR AF PJSM; RIH t)6865', precautionary wash f- 6925- tag 7' of fill no gains no losses. Note : hole slick running back to bottom. 05:00 06:00 1.00 DRILL ROT AF Drill 8 1/2 production hole section f 6925'-6960'@ 525gpm 2000psi wob 8- 10k1b, 82rpm, tq 8 -9.5kft -Ibs ,p /u 185kIbs s/o 130klbs, rt.wt.163klbs. ART =.3 hr AST =0 No Gain /loss. Mud wt. =9.7 #ECD = 10.3 EMW Report Date: 2/28/2009 Job Category: DRILLING 24 Hr Summary Drill Ahead f/6950' -7700' Circ up samples f/ GEO., Drill f/7700' -7935' Circ. up samplesf/ GEO, 1675 units gas, increase MW to 10.3#Drill f/7935'- 8055', CBU, Wiper Trip. Ops Trouble Start Time End Time Dur(hrs) Ops Code Activity Code Status Code Comment 06:00 12:00 6.00 DRILL ROT AF Drill 8 1/2 production hole section f- 6950'- 7360'. @ 525gpm 1800psi wob 8- 12klbs 85rpm tq 9.5 -11 kft -Ibs. p/u 190klbs, sio 145klbs, rt wt. 165klbs ART= 4.5hrs AST= 0 No /Gain/ Loss Mud Wt 9.7 ECD = 10.5emw Max gas 877units from 7014' Background gas 100units. 12:00 17:00 5.00 DRILL ROT AF Drill 8 1/2 production section f-7360'-7700'@ 525gpm 1800psi wob 8- 14klbs 85rpm tq 10 -11 kft-Ibs p/u 200klbs s/o 145klbs. rt. wt. 173 ART =2.9 AST =0 No Gain Loss. Max gas 551 units from 7325' 17:00 17:30 0.50 CIRC MUD AF Circulate B/U for samples as per MOC geologist at 7700' 17:30 21:00 3.50 DRILL ROT AF Drill 8 1/2 production section f- 77007935' (c@ 525gpm 2200psi wob 8- 14klbs 85rpm tq 10 -11 kft -Ibs p/u 200klbs s/o 145klbs. rt. wt. 175 ART 3.1 AST =O No Gain Loss. Max as 1675 units from 7920'. Conn. Gas= 7750w248 units._ 7814w658 units, 7877 =1600 units, 21:00 23:00 2.00 CIRC MUD AF ' PJSM; Increase mud wt. from 9.9# to 10.3 #, Circ. bottoms up sample for MOC Geo.Increase mud wt. for increased conn. gas. 23:00 01:30 2.50 DRILL ROT AF Drill 8 1/2 production section f-7935'-8055'@ 525gpm 2200psi wob 8- 14klbs 85rpm tq 10 -11 kft -Ibs p/u 200klbs s/o 145klbs. rt. wt. 175 ART =1.2 AST =O No Gain Loss. Conn. gas = 7935 -1475 units, 8055 =1106 units. 01:30 03:30 2.00 CIRC MUD AF Circ. bottoms up for samples as per MOC geologist at 8055'. Bottoms up gas 371 units. 03:30 06:00 2.50 TRIP WIPR AF PJSM; Check for flow. POOH for wiper trip f/8056'- 6865'Pull pipe f 8055' to 7689', Back ream f -7689' -6865' Clean up tight hole and clays No gain /Loss www.peloton.com Report Printed: 3/17/2009 • • - Marathon Operations Summary Report 10 S t✓AA , Oil Company Well Name: KENAI BELUGA UNIT 11 - 17X Daily Operations Report Date: 3/1/2009 Job Category: DRILLING 24 Hr Summary RIH f /6927'- 7995', Hole slick, CBU, @8055', Max. gas 3940 units, Shut in well circ. out gas, Wt. up mud to 10.7, POOH f/ logging, Hole slick, No gains No losses.R /U Loggers Ops Trouble Start Time End Time Our (hrs) Ops Code Activity Code Status Code Comment 06:00 07:00 1.00 TRIP WIPR AF RIH ( wiper Trip ) f- 69277995' Precautionary wash from - 7995 -8055' Hole slick. No gains or losses. 07:00 08.00 1.00 CIRC MUD TA WC Circulate B/U at 8055' Pump 525gpm, Gas units increased from 350 to 3940 units 1000stks short of B/U Shut well in and circulate through Gas buster at 90spm 925psi after 1100stks stop circulating and shut well in. No pressure build in hole or drillpipe. Open annular and continue circulating at 120spm 1050psi. initial gas 1350units after 650stks gas units decreased to100units. Mud weight 10.3+ in and out 08:00 09:30 1.50 CIRC MUD TS WC Begin to increase mud weight from 10.3ppg to 10.5ppa Continue circulating until mud weight at10.5 ppg. B/U gas after weight up 45units 09:30 15:00 5.50 TRIP WIPR AF POH ( wiper Trip) f -8055' -5585' Pull pipe free from 8055' to 6907'. Back ream ,wash and clean up swollen clays from 6907' to 5825'. Pipe pulled clean f- 5825' to 5585'. Mud weight 10.Sppg 15:Ci0 16 1.50 TRIP WIPR AF RIH ( wiper Trip) f- 5585'to 7995' wash down f -5595' -8055' Hole clean no tight spots. No Gain loss 16:30 17:30 1.00 CIRC MUD AF Circulate and pump Hi -vis sweep at 8055' pump 525gpm 1800psi. Sweep returned at caculated hole volume with increase in cuttings. Max Gas on_B /U 1143units. Note 1143 units after wiper trip of 7hours. 17:30 19:00 1.50 CIRC MUD AF Circulate and increase mud weight from 10.5+ to 10.7ppq 19:00 03:00 8.00 TRIP DP AF PJSM; Check well for flow, pump dry job, POOH f/8055' -500', SLM out, Monitor well at csg. shoe, no gains no losses, Up wt. =200K Dn wt.= Rt wt. =175K SLM No correction 03:00 04:30 1.50 TRIP BHA 'AF PJSM; POOH lay down BHA break off bit. All connections appear to be free of any galling. 04:30 06:00 1.50 RURD ELEC AF PJSM; Safety Meeting ,Rig up Weatherford wireline, Run quad combo logs. Report Date: 3/2/2009 Job Category: DRILLING 24 Hr Summary Run Quad combo logs, RIH w/ 5" D/P to csg shoe 5570', Cut drlg. line, RIH to 8055', CBU 867 units gas,POOH to shoe at 5570', RAJ Weatherford wireline, RIH to shoe w/ wireline,Wireline MFT as per Marathon geoligist. Ops Trouble Start Time End Time Our(hrs) Ops Code Activity Code Status Code Comment 06:00 13:00 7.00 LOG OH AF Continue Running Weatherford wireline Quad -combo logging suite from 8055' to 5585' (open hole.) log inside casing from 5585- 1600'. Poh with quad combo tools and unload source,lay down tools. Note Logging tools ran to 8050' w/a any problems, hole clean 13:00 16:30 3.50 TRIP DP AF Make Mule shoe and rih to 5565' 16:30 18.00 1.50 CUT WIRE AF PJSM ; Slip and cut drilling line. 171' total, 18:00 19.30 1.50 TRIP DP AF PJSM; Cont. run in hole f/5570'to 7907', Strap, Pick up, drift, 5" drill pipe, RIH f/7907' to 8055 ", wash down last 20', no fill. No gain or losses Hole slick. 19:30 20:30 1.00 CIRC MUD AF Circ. bottoms up, max qas 867 units.Pumping 546 GPM, 1200 psi.( Note gas units are from being off bottom for 24 hrs.) Mud weight 10.8 20:30 23:00 2.50 TRIP DP AF PJSM; Check for flow, pump dry job, POOH f/8055' -5570' Up wt. =200K On wt.145K Hole slick no tight spots. No gains No losses. 23:00 00:00 1.00 RURD ELEC AF - PJSM; With Weatherford logging crew, R/U Sheaves and lubricator, make up tools. 00:00 02:00 2.00 LOG OH AF RIH with MET tools to 9 5/8 csg shoe at 5570' with E -Line. Wait on pick points. 02:00 06:00 4.00 LOG OH AF RIH to 8055' With MET tools on E -line logs as per marathon geologist. first pressure at 7941'. Note : as of 0600hrs 10 attempts made with 4 successful tests Formation pressure at 7890' =10.81 EMW - Report Date: 3/3/2009 Job Category: DRILLING 24 Hr Summary Run MFT, RID loggers, POOH w/ 5" D/P, www.peloton.com Report Printed: 3/17/2009 • n Marathon Operations Summary Report N Ar nrtk Oil Company Well Name: KENAI BELUGA UNIT 11 -17X Ops Trouble Start Time End Time Our (hrs) Ops Code Activity Code Status Code Comment 06:00 02:30 20.50 TEST PBU .AF Run MFT pressure build up tests. POH with mft tools on e line and clean up plugged pads. Run back in hole with MFT tools on e- line. Continue taking pressures from 7735' - 5567'(99 attempts made, 33 successful) 02:30 03:00 0.50 RURD ELEC AF PJSM; Rig down Weaterford Wireline 03:00 06:00 3.00 TRIP DP AF PJSM; POOH f /55671vith 5" drill pipe and mule shoe.End evaluation phase at 0600 hrs.Move to Completion phase. Well static, no gains, no losses. Daily Operations Report Date: 3/4/2009 Job Category: DRILLING 24 Hr Summary Make up 8 112 BHA, RIH, CBU, 1502 units gas, MW =10.9, Increase mud wt to 11.0 ppg POOH UD D /P, LID BHA, R/D floor to run 3 1/2 csg., RIU to run 3 1 csg., Test 2 7)8 -5 1/2 varible rams . Ops Trouble Start Time End Time Our (hrs) Ops Code Activity Code Status Code Comment 06:00 06:30 0.50 TRIP BHA AF Make up 8 1/2 bit , bit sub with float HWDP and jars RIH 06:30 12:30 6.00 TRIP DP AF Continue RIH with Drill pipe Fill pipe at 2800', 5550' and 7990' Hole clean no tight spots. No gain or losses 12:30 15:00 2.50 CIRC MUD AF Circulate B/U @ 525gpm 1275psi 40rpm. Max B/U gas 1502units. after 37hrs from last b/u circulation. Note. At 5500 stks gas units at 565, at 6580stks 1000units At B/U 7856stks 1502units. Mud weight 10.9+ In and out. Increase mud weight to 11.0 ppg in and out. Monitor well, Pump dry job 15:00 00:30 9.50 TRIP DP AF POH laying down drill pipe. Flush out each joint with H2O and dope thread protectors. Lay down hvy. wall, bit sub, and bit. No gains No losses. Hole slick no drag. 00:30 06:00 5.50 RURD CSG AF PJSM; rig down rig floor, change out bails, rig up to run 3 1/2 csg, Center rig over hole, Test 2 7/8 -5 1/2 variable rams 2000 psi high, 250 psi low, 5 min each. Report Date: 3/5/2009 Job Category: DRILLING 24 Hr Summary Run 3 -1/2" Excape system to 8015'. CBU. R/U to run correlation log. Ops Trouble Start Time End Time Our (hrs) Ops Code Activity Code Status Code Comment 06:00 06:30 0.50 RUN CSG AF M/U 3 1/2" shoe track and check floats(OK). 06:30 '12.00 5.50 RUN CSG AF Run 3 1/2" 9.3 L -80 8rd EUE casing Escape completion. 12:00 13:00 1.00 RUN CSG AF PJSM w /crew coming on tour. Cont. to run 3 1/2" Escape completion (total 13 modules) 13:00 13:30 0.50 CIRC MUD AF Circ. 1 CSG volume 4.5BPM 285 PSI. 13:30 14:00 0.50 SAFETY DRIL AF PJSM /JSA for R/U air slips and discuss near miss with safety valve. 14:00 03:30 13.50 RUN CSG AF Cony RIH w/ 3 -1/2 ", 9.3 #, L -80, EUE Mod csg w/ 2 control lines & 1 sacrificial line. Ran 234 total jts. Circ 1 csg volume @ 9 -5/8" shoe. 03:30 05.30 2.00 CIRC MUD AF CBU (rt?, 5 bpm & 850 psi while slowly reciprocate pipe.. P/U 95 klbs, S/0 77 klbs. Bottoms up gas = 38 units. 05:30 06:00 0.50 RURD ELEC AF PJSM w/ Expro wireline crew: R/U to run correlation log. Report Date: 3/6/2009 Job Category: DRILLING 24 Hr Summary Run correlation log. Space out completion. R/U & cement 3 -112" csg in place. R/D cmt equipment. Flush & blow down surface equipment. Centrifuge mud to 9.8 ppg & move to storage. Pickle mud pumps. N/D stack & flow line. Set 3 -1/2" csg slips w/ 60 klbs net tension on tubing neck. Cut 3 -1/2" csg & UD stump. Move out stack. Set 3 -1/2" packoff & test. Ops Trouble Start Time End Time Our (hrs) Ops Code Activity Code Status Code Comment 06:00 09:30 3.50 RUNPUL ELEC AF PJSM. R/U electric line. Run GR -CCL correlation log. R/D electric line( -2.8' correction). 09:30 10:00 0.50' RURD CMT AF PJSM. R/U cement head and cement line. 10:00 10.30 0.50 RURD CSG AF R/D casing tongs and slips. 10:30 12:00 1.50 CLEAN RIG AF Clean and organize rig floor. Mix 90bbls 3 %KCL brine in vac truck. PJSM for cement job. 12:00 13.30 1.50 PUMP CMT AF Pump 3bbls fresh water. Test cement lines to 4000psi. Mix and pump 40bbls MCS -4D 11.5ppg spacer. Mix and pump 1132SXS class "G" cement w /.05 %bwoc static free, .5 %bwoc calcium chloride, 1.2 %bwoc BA -56, .5 %bwoc EC-1..4% bwoc CD -32, 1 gphs FP -6L, .2% bwoc Sodium Metasilicate and 43.6% fresh water to yield 235bbIs 15.8ppg slurry. 13:30 14:00 0.50 PUMP CMT AF Displace w/70.4bbls 3 %KCL brine. Bump plug w/3200psi 1200psi over last displacement pressure. Bleed off pressure. Floats held . CIP 14:UUhrs. 100% returns. Lost 5 bbl mud throughout job. www.peloton.com Report Printed: 3/17/2009 • • Marathon Operations Summary Report p TH1 Oil Company Well Name: KENAI BELUGA UNIT 11 -17X Ops Trouble l Start Time End Time Dur(hrs) Ops Code Activity Code Status Code Comment 14:00 22.00 8.00 WAITON CMT AF While WOO. RID cement equipment. Blow down & flush surface equipment. Pickle mud pumps. Clean trip tank. Prep to NID BOPE. Centrifuge 350bbls (6 hrs) 11.0ppg mud down to 9.7 +ppg & move to storage tank. 22:00 00:00 2.00 NUND ROPE AF PJSM: RID flow nipple & drip pan. Lift stack. Clean mud pits. 00:00 01:00 1.00 NUND BOPE AF PJSM w/ Vetco Gray & MOC completion engineers: Set 3 -1/2" csg slips w160 klbs net tension on tubing (75 klbs on drillers weight indicator). 01:00 04:30 3.50 NUND ROPE AF Make rough cut on csg & remove stump. Finish N/D ROPE. Move out stack & set in rack. Make final cut on csg & dress off. Install & test 3 -1/2" packoff to 5000 psi f/ 10 min (ok). Set 3" TWCV. 04:30 06:00 1.50 NUND TREE AF N/U production tree. Daily Operations Report Date: 3/7/2009 Job Category: DRILLING 24 Hr Summary Test tree void to 5000psi /5min. Test tree to 5000psi /5min and chart test. Test tree to 10,000psi. Pull TWC. Test 3 1/2" casing to 2000psi/30min. Install BPV. Rig down GD -1 for rig move. Ops Trouble Start Time End Time Dur(hrs) Ops Code Activity Code Status Code Comment 06:00 06:30 0.50 NUND TREE AF Cont. to NM Vetco MB -196 3 112" X 13 5/8" 5M TBG bonnet X 3 1/16" 1DM tree. 06:30 10:00 3.50 TEST TREE AF Test tree void to 5000psi /l0min. Test tree to 5000psi /10min(chart). Test tree to 10000psi /10min wfvetco pump. Pull TWC. Test 3 1/2" CSG to 2000psi130min(chart). Install BPV. 10:00 12:00 2.00 RURD RIG AF Clean pits and R/D rig. UD elevators & bails. RID service loop. 12:00 00 :00 12.00 RURD RIG AF PTSM: L/D top drive & torque tube. L/D stairs from BOP connex to rig floor. L/D beaver slide. Prep & scope down derrick. Push in bridge crane beams. Blow down rig water. Pickle test pump. Winterize drawworks. Remove trip tank from cellar. Suck out carrier sumps. Move mud products, #3 pump house & auxiliary generator to 41 -7 pad. 00:00 02:00 2.00 RURD RIG AF PTSM: R/D driller's console, hydraulic, electric & service lines from sub to rig floor. 02:00 06:00 4.00 RURD RIG AF PJSM w/ ASRC crane operator Load BOP connex on trailer. Crane down wind walls, back landing & stairs, dog house, drillers side gray iron, panic line, choke house, flow line, back stairs & landing, ods gray iron. Report Date: 3/7/2009 Job Category: DRILLING 24 Hr Summary Cont. crane work. Move miscelaneous loads to pad 41 -7. Prep rig to move. Release Rig to KBU42 -6X @ 12:00hrs 3/7/2009. Ops Trouble Start Time End Time Dur(hrs) Ops Code Activity Code Status Code Comment 06:00 09:00 3.00 RURD RIG AF Crane down choke house, flow line stairs, solids connex and fuel tank. 09:00 12:00 3.00 KURD RIG AF PJSM with truck drivers for rig move. Prep rig to move. Move miscelaneous loads to Pad 41 -7. Released Rig to KBU42 -6X @ 12:00hrs 3/7/2009. Report Date: 318/2009 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 r Start Time End Time Dur(hrs) Ops Code Activity Code Status Code Comment 12:00 0000 12.00 RURD RIG AF Acce. ig from KBU 11 -7X @ 12:00 hrs on 3/7/2009. PTSM: Moves lase off well & . . 4 e down. Split pits & move out. Move out generator •'use, boiler house & wate k house. Move in & spot pits & pump hou - , and pull together. Move in : •t up generator & boiler houses. S• ud boat & park carrier. Blow down hydr.. is hose on carrier & makr -pair. Level & turnbuckle down carrier. Plug in power •und rig. Move in •.mp & set up. 00:00 04.00 4.00 RURD RIG AF PTSM: Prep & raise derrick. Pull e ri • es & plug in. Tighten guy wires. Fold down wings on carrier. Unload :l • - & send back to KBU 11 -7X. 04:00 06:00 2.00 RURD RIG 'AF PJSM w/ ASRC crane operato rane up fue -nk & 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 Cur(hrs) Ops Code Activity Code Status Code Comment 06:00 12:00 6.00 RURD RIG AF PJS rane up pit side gray iron, choke house, flowline, stairs, land : , b- - wind walls, BOP connex & front stairs. www.peloton.com Report Printed: 3/17/2009 Marathon Operations Summary Report «ti a wm Oil Company Well Name: KENAI BELUGA UNIT 11 -17X Ops Trouble Start Time End Time Dur(hrs) Ops Code Activity Code Status Code Comment 12:00 18:00 6.00 RURD RIG AF P M: Prep & scope up mast. Tighten guy wires. Install cylinder socks. 'ig up 'onkey board. Install beaver lide, carrier roof & side tarps. Install dri -r's cons- & power up to test run (ok). 18:00 00:00 6.00 RURD RIG AF PJSM: +' ork on ods manrider control solenoid. P/U & hang torque be. 00:00 06:00 6.00 RURD RIG . AF PTSM: Ti- back hanging lines in derrick. Install doors to access • ns in sub base legs fr. outside of sub. Fill camp with water. Troublesho% & repair glycol heater .r stored mud. Daily Operations 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 RURD RIG AF PJSM: P/U top drive. Han. .ails & elevators. Co work on access doors on sub base. Hang rig tongs & .."e spinners. 12:00 00:00 12.00 RURD RIG AF PTSM: R/U mud manifold. Inst. I snub posts '/U slips, sub rack, dart &floor valves. Remove snow from matti a boards. nand walkways. R/U bleeder, fill up, kill & choke hoses. R/U geolo. aph. 'pork on ods manrider. Can't work on access doors on sub base. Unload t .il s. Rack 5" drill pipe on sills. 0/0 saver sub & grabber dies. Take meas ements for new top drive & turnbuckles. 00:00 06:00 6.00 WAITON BEGS TA RD Monitor rig & mud storage tanks. • gani • rig floor, work bench & dog house. Thaw water line to co. man's trail:. Shove ow & sand walkways. Report Date: 3/11/2009 Job Category: DRILLING 24 Hr Summary • Monitor rig & mud storage tanks while wait on drilling permits. Ops Trouble Start Time End Time Dur(hrs) Ops Code Activity Code Status Code Comment 06 1800 12.00 WAITON BEGS TA RD PJSM: Monitor rig & dd storage tanks. Shovel sno : sand walkways. Repair & reinforce s If in parts house. Fuel loader & c- p generator. Set pump #3. R/U gaitr.nics from camp to rig. 18:00 06:00 12.00 WAITON BEGS TA RD PJSM: Monitor r . & mud storage tanks. Shovel snow & sa . walkways. Offload all mud .roducts from trailers & place on matting boa s. Work on hydraulic lea: on drillers console. Plump rod wash overflow line for mud pumps 1 & Report Date: 3.12/2009 Job Category: DRILLING 24 Hr Summary Monitor rig & mud storage tanks while wait 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 TA RD PJSM: Monitor rig & mud storage tanks. Shovel snow & sand walkways. Report Date: 3/13/2009 Job Category: COMPLETION 24 Hr Summary Prep well to run CBL / GR Ops Trouble Start Time End Time Dur(hrs) Ops Code Activity Code Status Code Comment 12:30 13:00 0.50 SAFETY MTG AF PJSM with Vetco -Gray. Review JSA, job assignments, active gas production pad, red lights for fire, blue lights for gas emission, sirens, muster area, my vehicle will be emergency vehicle, 1st aid, eye wash station at GCI. buddy rule, 3 second rule, stop the job authority etc. 13:00 13:15 0.25 RUNPUL VLVE AF Rig up Vetco - Gray bar to pull back pressure valve. Pull valve. 13 0.25 SECURE WELL AF Secure wellhead, leave location, return work permit to #1 operator at gas field. Report Date: 3/162009 Job Category: COMPLETION 24 Hr Summary Run CBUGR, Turn well over to the facilities group to hook up to flowlines and facilities. Ops Trouble I Start Time End Time Dur(hrs) Ops Code Activity Code Status Code Comment 07:30 08.30 1.00 SAFETY MTG AF Arrive at location, obtain work permit, hold PJSM - Topics discussed: review JSA, assign jobs, pinch points, overhead loads, slips, trips, falls, active gas production pad, red lights for fires, blue lights for gas emission, sirens, muster points, emergency calls to #1 operator 283 -1305, let ring twice, no answer dial 911, emergency vehicle. Small grating where flowline goes underground is a hazard due to excavation around grating being a ankle twister. Marked with orange cone. Focus when working around this area. www.peloton.com Report Printed: 3/17/2009 • • Marathon Operations Summary Report In a u I Oil Company Well Name: KENAI BELUGA UNIT 11-17X Ops Trouble Start Time End Time Our (hrs) Ops Code Activity Code Status Code Comment 08:30 10:00 1.50 KURD ELEC AF Rig up electric wireline unit, crane, and packoff on wellhead. Nitecap on tree over swab valve frozen. Obtain heater, heat cap, remove cap. Rig up packoff 10:00 13:30 3.50 RUNPUL ELEC AF _ RIH with CBL / GR tool. Tie log into Weatherford Measured Depth Photo Density / Dual Spaced Neutron / Gamma Ray log dated 1 March 2009. Bottom logged interval 7900 feet MD. Cement top at 4430 feet MD. 13:30 15:00 1.50 RURD ELEC AF POOH with wireline, rig down wireline truck, crane truck and lubricator. Police location for garbage. 15:00 15:30 0.50 SECURE WELL AF Secure wellhead for evening , turn well over to production and facilities group, turn in work permit, leave location. www.peloton.com Report Printed: 3/17/2009 4111P SARAH PA L IN ,GOVERNOR 11/TY---4 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 Advanced Senior Drilling Engineer Marathon Oil Company 3201 C. Street, Ste 800 Anchorage AK 99503 Re: Kenai Gas Field, Beluga /Upper Tyonek Gas Pool, KBU 11 -17X Marathon Oil Company Permit No: 209 -016 Surface Location: 439' FNL, 420' FEL, SEC. 18, T4N, R11W, S.M. Bottomhole Location: 876' FNL, 329' FWL, SEC. 17, T4N, R11W, S.M. Dear Mr. Tank: Enclosed is the approved application for permit to drill the above referenced development well. This permit to drill does not exempt you from obtaining additional permits or an approval required by law from other governmental agencies and does not authorize conducting drilling operations until all other required permits and approvals have been issued. In addition, the Commission reserves the right to withdraw the permit in the event it was erroneously issued. Operations must be conducted in accordance with AS 31.05 and Title 20, Chapter 25 of the Alaska Administrative Code unless the Commission specifically authorizes a variance. Failure to comply with an applicable provision of AS 31.05, Title 20, Chapter 25 of the Alaska Administrative Code, or a Commission order, or the terms and conditions of this permit may result in the revocation or suspension of the permit. When providing notice for a representative of the Commission to witness any required test, contact the Commission's petroleum field inspector at (907) 659 -3607 (pager). incerely, ti Daniel T. Seamount, Jr. 74\ Chair DATED this L L day of February, 2009 cc: Department of Fish & Game, Habitat Section w/o encl. Department of Environmental Conservation w/o encl. (V • RECE1VEID STATE OF ALASKA Y CL.d ALASKA OIL AND GAS CONSERVATION COMMISSION S AN 8 2009 PERMIT TO DRILL ( O 20 AAC 25.005 /�laska(��( 1a. Type of Work: 1b. Current Well Class: Exploratory El Development Oil ❑ 1c. Specify if well is propo,'L1 I : pct* ns. CammiSSiOE'� Drill IN Redrill ❑ Stratigraphic Test ❑ Service ❑ Development Gas 0 Coalbed Methane ❑ N:wages ❑ Re -entry ❑ Multiple Zone la 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 11 -17X 3. Address: 6. Proposed Depth: 12. Field /Pool(s): 3201 C. Street, Suite 800, Anchorage, AK 99503 MD: 7,935 TVD: 7,788 Kenai Gas Field 4a. Location of Well (Governmental Section): 7. Property Designation: Beluga / Upper Tyonek Pool Surface: 439' FNL, 420' FEL, Sec. 18, T4N, R11W, S.M. ADL- 022330 Top of Productive Horizon: 8. Land Use Permit: 13. Approximate Spud Date: 876' FNL, 329' FWL, Sec. 17, T4N, R11W, S.M. February 15, 2009 Total Depth: 9. Acres in Property: 14. Distance to Nearest 876' FNL, 329' FWL, Sec. 17, T4N, R11W, S.M. 1,478.9 Property: 994 ft 4b. Location of Well (State Base Plane Coordinates): NAD 27 10. KB Elevation 15. Distance to Nearest Well Surface: x - 275,390.749 y - 2,356,293.684 Zone - 4 (Height above GL): (21' AGL) 88 feet Within Pool: 1,690 ft KBU 41 -18X 16. Deviated wells: Kickoff depth: 2,200 feet 17. Maximum Anticipated Pressures in psig (see 20 AAC 25.035) Maximum Hole Angle: 25.673 degrees Downhole: 4,131 Surface: 2,335 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 120' 0' 0' 141' 141' 16" 13 3/8" 68 K -55 BTC 1,579' 0' 0' 1,600' 1,600' 507 sacks 12 1/4" 9 5/8" 40 L -80 BTC 5,564' 0' - 0' 5,585' 5,438' 325 sacks 8 1/2" 3 1/2" 9.3 L -80 EUE 7,914' 0' 0' 7,935' 7,788' 1,103 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 0 BOP Sketch 0 Drilling Program ig Time v. Depth Plot ❑ Shallow Hazard Analysis ❑ Property Plat EI Diverter Sketch 0 Seabed Report ❑ Drilling Fluid Program 0 20 AAC 25.050 requirements ❑ 21. Verbal Approval: Commission Representative: Date 22. I hereby certify that the foregoing is true and correct. Contact Printed Name Willard J. Tank Title Advanced Senior Drilling Engineer Signature ( J (e..\_, Loa -7- Phone 713 - 296 -3273 Date January 28, 2009 Commission Use Only Permit to Drill API Number: Permit Approval See cover letter for other Number: c7.?091716. 5°-/L--t34'70.5-f.5-0000 Date: • ('• 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: 1E ?f Other: zc \.d ,i:,5, � c- c r �A— Samples req'd: Yes No R( Mud log req'd: Yes No f H measures: Yes❑ No [ Directional svy req'd: Yes Er No APPROVED BY THE COMMISSION 2-7/7/ DATE: / , COMMISSIONER Form 10 -401 Revised 12/2005 oRIGINAL Submit in Duplicate • Worldwide Drilling North America M Marathon P.O. Box 3128 MARATHON Oil Company Houston, TX 77253 -3128 Telephone 713 - 629 -6600 Fax 713 -499 -6737 January 28, 2009 RECEIVED Daniel T. Seamount, Jr. Commissioner JAN 2 8 2009 State of Alaska Alaska Oil & Gas Conservation Commission Alaska Oil & Gas C ons• Commission West 7 Ave, Suite 100 Ancho rage Anchorage, AK 99501 Reference: Drilling Permit Application Field: Kenai Gas Field Well: KBU 11 -17X 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. Sinncereiy, I ✓ w.7 J Willard J. Tank Advanced Senior Drilling Engineer Enclosures • KBU 11 -17X Marathon Oil Company Drilling Program Alaska MARATHON MARATHON OIL COMPANY DRILLING PROGRAM Kenai Gas Field KBU 11 -17X Originator: Will Tank January 28, 2009 Date Reviewed by: Pete Berqa Date Brian Roy Date 1/28/2009 Page 1 of 18 • • KBU 11 -17X Marathon Oil Company Drilling Program Alaska TABLE OF CONTENTS 1. Emergency Response Information 4 1.1 Directions to Location 4 1.2 Rig Contact Numbers 4 1.3 Marathon Emergency Response Contacts 4 1.4 Outside Emergency Response 4 1.5 Marathon Contact List 5 2. Regulatory Agency Contacts 5 2.1.1. Internal Regulatory Contact 5 2.1.2. External Regulatory Contact 5 3. Regulatory Compliance 5 4. Drilling Program Summary 6 4.1 General Well Data 6 4.2 Working Interest Owners Information 6 4.3 Geologic Program Summary 6 4.4 Summary of Potential Drilling Hazards 7 4.5 Formation Evaluation Summary 7 4.6 Drilling Program Summary 8 4.7 Casing Program Summary 10 4.8 Casing Design 10 4.9 Calculation of Maximum Anticipated Pressures (MAWP and MASP) 10 4.10 Casing Test Pressure Calculations 12 4.11 Blowout Prevention Equipment, Testing and General Procedures 12 4.11.1. Function Testing 13 4.11.2. Pressure Testing 13 4.12 Wellhead Equipment Summary 13 4.13 Directional Program Summary 13 4.14 Directional Surveying Summary 15 4.15 Drilling Fluid Program Summary 15 4.16 Drilling Fluid Specifications 15 4.17 Solids Control Equipment 16 4.18 Cement Program Summary 17 4.19 Bit Summary 17 4.20 Hydraulics Summary 18 4.21 Formation Integrity Test Procedure 18 1/28/2009 Page 2 of 18 • • KBU 11 -17X 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 1/28/2009 Page 3 of 18 • • KBU 11 -17X Marathon Oil Company Drilling Program Alaska 1. Emergency Response Information 1.1 Directions to Location Method Directions Air Latitude - 60 °26'35.905 "N Longitude - 151 °14'45.227 "W (NAD 83) From the Kenai airport, go 0.5 mile South on Willow Street. Turn East on Main Street Loop, go 0.3 miles. Continue East on Bridge Access Road 3.2 miles. Turn West on Kalifornsky Beach Road. Go West and then South, go approximately 5 miles, just Ground past the Kenai Gas Field office at Pad 34 -31. Turn East onto the next lease road South of the Kenai Gas Field office. Travel Southeast 1 mile to pad 14 -6. Go through pad and continue East 0.5 mile to pad 41 -7. Turn and go 1 mile South to Pad 41 -18. 1.2 Rig Contact Numbers Contact Office Cell Glacier Drilling Rig 1 Inlet Drilling Tool Pusher 907- 283 -1314 907- 394 -1321 Marathon Supervisor 907 - 283 -1312 907 - 394 -1317 1.3 Marathon Emergency Response Contacts Individual Postion Main Phone Alternative Kenai Gas Field Emergency Number 907 - 283 -6465 CERT 24 hrs Notification 1- 800- MOC -CERT CERT Crisis Center Houston 713 - 296 -4230 713 - 296 -4237 1.4 Outside Emergency Response Location Contact Phone Fire Kenai / Soldotna, Alaska 907- 262 -4792 Ambulance Hospital Kenai / Soldotna, Alaska Central Peninsula Hospital 907 - 262 -4404 Kenai Police 907 - 283 -7879 Police Kenai / Soldotna, Alaska Soldotna Police 907- 262 -4455 State Police 907 - 262 -4453 Coast Guard 800 - 478 -5555 Spill and Contamination Alaska Alaska State Spill Reporting National Response Center Oil / Toxic Chemical Spills 800 - 424 -8802 Best Practices: 1 Policy: Post emergency notification information on rig floor, company man's and tool pushers' office Comments: 1/28/2009 Page 4 of 18 • • KBU 11 -17X 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 Clyde Scott Reservoir Engineer 713 - 296 -2336 j 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. 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 prior to BOP tests. (20 AAC 25.035 e 10 F) Prior to Spud Requirement for a 24 hour notice to AOGCC prior to spud of the well. Water Sampling Test the rig camp water for the Class C drinking water permit. Cuttings Tank Take picture of cutting tank in use and after cleaning for the ADEC. Prior to Rig Move Notify Alaska Department of Natural Resources 24 hours before moving the rig, if going to Ninilchik or Kasilof. Comments 1/28/2009 Page 5 of 18 • • KBU 11 -17X Marathon Oil Company Drilling Program Alaska 4. Drilling Program Summary 4.1 General Well Data Well Name KBU 11 -17X Lease / License Surface Location 439' FNL, 420' FEL, Sec. 18, T4N, R11W, S.M. WBS Code DD.08.18948.CAP.DRL Slot/Pad KGF Pad 41 -18 Field Kenai Gas Field Spud Date 2/15/09 (est.) KB (above MSL) 88' County /Province Kenai Peninsula API No. GL (above MSL) 67' State / Country Alaska Permit No. Perm. Datum KB Total MD 7,935' Well Class Development Water Depth N/A Total TVD 7,788' 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 439' FNL, 420' FEL, Sec. 18, T4N, R11W, S.M. Latitude 60° 26' 35.905" N Longitude 151° 14' 45.227" W UTM North (Y) 2,356,049.058' UTM East (x) 1,415,419.753' Tolerance Pore Pore MD - RKB TVD — RKB Pressure Pressure Possible Formation (ft) (ft) (psi) (ppg) Lithology Fluid Content Sterling A -8 (Not a Prod Target) 3,777 3,688 0.8 — 6.5 Sandstone Gas/Water Beluga (Not a Prod Target) 5,009 4,863 1.5 — 7.3 Sandstone Gas Middle Beluga (Primary Target) 5,610 5,463 5.8 — 10.6 Sandstone Gas Lower Beluga (Primary Target) 6,335 6,188 5.8 — 10.6 Sandstone Gas Tyonek (Primary Target) 7,435 7,288 3.8 — 10.6 Sandstone Gas 1/28/2009 Page 6 of 18 • • KBU 11 -17X 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 5,610 5,463 876' FNL, 329' FWL, Sec. 17, T4N, R11W, S.M. -437 749 Circle 150' radius Lower Beluga 6,335 6,188 876' FNL, 329' FWL, Sec. 17, T4N, R11W, S.M. -437 749 Circle 150' radius Tyonek 7,435 7,288 876' FNL, 329' FWL, Sec. 17, T4N, R11W, S.M. -437 749 Circle 150' radius TD 7,935 7,788 876' FNL, 329' FWL, Sec. 17, T4N, R11W, S.M. -437 749 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 (3,777' MD, 3,688' 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 (ND) 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. 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 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- 3,777' MD (3,688' 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: 4.5 Formation Evaluation Summary Interval LWD Electric Logs Mud Logs Surface None None None 0' — 1,600' MD Intermediate None None Basic with GCA, shale density, temperature in and 1,600' — 5,585' MD out, sample collection (10' samples). Production None Reeves Quad Combo, MFT Pressures. Basic with GCA, shale density, temperature in and 5,585' — 7,935' MD Pull GR- Neutron to surface. out, sample collection (10' samples). Completion N/A GR, CCL, CBL N/A Comments: 1/28/2009 Page 7 of 18 • • KBU 11 -17X Marathon Oil Company Drilling Program Alaska 4.6 Drilling Program Summary Drive Pipe: N/A Conductor: 20" set to approximately 120', prior to drilling rig move. MIRU drilling rig. NU diverter. 1. RU crane and hammer. Drive 20" conductor to +/ -120 ft. RKB. RD crane and hammer. 2. Move in and rig up rotary drilling rig. 3. Install starting head 20" SLC x 21 1/4 ", 2M flanged. 4. Nipple up 21 1/4 ", 2M diverter, 16" diverter valve, and 16" diverter line. 5. Function test diverter and diverter valve. Best Practices: 1 Comments: Surface: Drill 16" hole to +/- 1,600' set 13 -3/8" casing. 1. Drill a 16" hole to 1,600' MD (1,600' 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. TIN 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 250/2,500 psi. 6. Set wear bushing. 7. Test surface casing to 1,500 psi. Best Practices: 1 During cementing operations, take returns in the cellar, instead of into the pits. Eliminates the clean up of pits from cement that circulated to surface. Vac trucks will pull from cellar. Comments: Intermediate: Drill 12 -1/4" hole to +/- 5,585' 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 5,585' MD (5,438' TVD) as per directional program, short tripping as required. 4. At TD circulate hole clean. Make wiper trip. TOOH and lay down BHA. Pull wear bushing. 5. Change out variable pipe rams with 9 5/8" casing rams. Run test plug and test casing rams to 2,500 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 250/2,500 psi. 8. Set wear bushing. Test casing to 1,500 psi. Best Practices: 1 Pre -heat mud mix water to help in early shaker screen blinding issues with the mud. 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. 1/28/2009 Page 8 of 18 • • KBU 11 -17X Marathon Oil Company Drilling Program Alaska 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 +/- 7,935' set 3 -1/2" EXCAPE string. 1. PU 8 1/2" bit and directional BHA. Drill float equipment and 20' of new formation. CBU. 2. Test shoe to an FIT of 12 ppg. Estimated Leak Off EMW is 13 ppg. 3. Drill 8 1/2" hole to an anticipated TD of 7,935' MD (7,788' TVD) as per the directional program, short tripping as required. 4. At TD circulate hole clean. Make wiper trip. TOOH. 5. RU Precision. Run open hole logs as per plan. RD logging company. 6. TIH w/ 8 1/2" bit to TD for wiper trip. TOOH to 9 5/8" shoe and circulate until log evaluation is complete for picking EXCAPE modules. After picks are made, trip to TD and circulate clean. TOOH and lay down BHA and drill pipe. Pull wear bushing. 7. RU and run 3 1/2" EXCAPE casing string. RU logging company to correlate EXCAPE modules to open hole logs. RD logging company. 8. Cement 3 1/2" casing while reciprocating. Bump plug with 500 psi over displacement pressure. WOC. 9. PU 3 1/2" casing. PU BOP stack. Make control line and electric line connections to tubing bonnet assembly. Set slips. Cut 3 1/2" casing. 10. LD BOP. Set 3 1/2" packoff. NU 13 5/8" 5M X 3 1/16" 10M tubing head adapter and 3 1/16" 10M tree. Test tree to 5,000 psi. 11. Rig down and move out drilling rig. Note: Drill all hole sections with 5" drillpipe. Perforating guns will be run on the outside of the 3 1/2" production casing with a flapper valve just below each perforating gun. Guns to be activated by control line to surface. Best Practices: 1 Drill all hole sections with 5" drillpipe to maximize hole cleaning hydraulics. 2 Do not circulate on bottom longer than 1 hour prior to moving pipe on a short trip to minimize hole washout. This is important when waiting on log analysis to give EXCAPE module placement points. 3 Put lubricant in prior to drill out of intermediate shoe. 5% 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: 1 Comments: 1/28/2009 Page 9 of 18 • • KBU 11 -17X Marathon Oil Company Drilling Program Alaska 4.7 Casing Program Summary MD (ft) Connection API Ratings Casing Makeup Hole L ,. n ,. o , N w N y O. Size Weight ID Drift O. D. Torque Size m ' ° - v 8 H (i n) Top Bottom (Ibs /ft) (in) (in) Grade Type (in) (ft -Ibs) (in) 13 3/8 0 1,600 68 12.415 12.259 K -55 BTC 14.375 N/A * 16 3,450 1,950 1,300 9 5/8 0 5,585 40 8.835 8.679 L -80 BTC 10.625 N/A* 12 1/4 5,750 3,090 979 31/2 0 7,935 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 90,000 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 a o Size Weight TVD When Set Grad Press Pressure 0 o (in) (lb/ft) Grade (ft) (lb/gal) (lb/gal) (lb/gal) (psi) m U i- 13 3/8 68 K -55 1,600 9.2 15.0 8.4 0 2.20 2.55 4.41 9 5/8 40 L -80 5,438 9.2 13.0 1.5 2,335 1.84 1.19 3.19 31/2 9.3 L -80 7,788 10.3 15.0 10.2 2,335 1.10 2.53 1.30 4.9 Calculation of Maximum Anticipated Pressures (MAWP and MASP) Setting Casing Depth Size TVD MAWP * MASP ** Mud /Gas (in) (ft) (psi) (psi) Percentage 13 3/8 1,600 2,340 0 30/70 9 5/8 5,438 4,025 2,335 30/70 3 1/2 7,788 6,667 2,335 30/70 * MAWP = Maximum allowable working pressure ** MASP = Maximum anticipated surface pressure 1/28/2009 Page 10 of 18 • • KBU 11 -17X 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 less. Marathon believes that constant gas monitoring and proper rig supervisor well control training will prevent the possibility of a wellbore being completely evacuated with only a gas gradient remaining. Surface casing: 13 3/8" (1,600' MD, 1,600' TVD) MASPfrac = ((Fracture gradient at shoe) x .052 x TVDshoe) - Hydrostatic pressure of gas column at the shoe. MASPfrac = (15.0 ppg x .052 x 1,600') - (0.1 psi /ft x 1,600') MASPfrac = 1,248 psi - 160 psi MASPfrac = 1,088 psi. MASPbh = BHP open hole td — Hydrostatic pressure of mud portion — Hydrostatic pressure of gas portion MASPbh = (1.5 ppg x .052 x 5,438') — (0.3 x 9.2 ppg x .052 x 5,438') — (0.7 x 0.1 psi /ft x 5,438') MASPbh = 424 psi — 780 psi — 381 psi MASPbh = -737 psi = 0 psi MASP = MASPbhp = 0 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 1,600' MAWP = 2,415 psi — 75 psi = 2,340 psi Intermediate casing: 9 5/8" (5,585' MD, 5,438' TVD) MASPfrac = ((Fracture gradient at shoe) x .052 x TVDshoe) - Hydrostatic pressure of gas column at the shoe. MASPfrac = (13.0 ppg x .052 x 5,438') - (0.1 psi /ft x 5,438') MASPfrac = 3,676 psi - 544 psi MASPfrac = 3,132 psi. MASPbh = BHP open hole td - Hydrostatic pressure of mud portion — Hydrostatic pressure of gas portion MASPbhp = (10.2 ppg x .052 x 7,788') — (0.3 x 10.3 ppg x .052 x 7,788') — (0.7 x 0.1 psi /ft x 7,788') C P y� f � MASPbh = 4,131 psi — 1,251 psi — 545 psi • \ ' } t MASPbhp = 2,335 psi \ T _ it 1050 = 3 t es � MASP = MASPbhp = 2,335 psi /4g MAWP = (0.7 x Casing Burst) — (Mud Wt. — Backup Fluid Wt.) x .052 x TVD tC� MAWP = (0.7 x 5,750) — (9.2 — 9.2) x .052 x 5,438' MAWP = 4,025 psi — 0 psi = 4,025 psi Production casing: 3 1/2" (7,935' MD, 7,788' 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 7,788') - (0.1 psi /ft x 7,788') MASPfrac = 6,075 psi - 779 psi MASPfrac = 5,296 psi. MASPbh = BHP open hole td - Hydrostatic pressure of mud portion — Hydrostatic pressure of gas portion MASPbhP = (10.2 ppg x .052 x 7,788') — (0.3 x 10.3 ppg x .052 x 7,788') — (0.7 x 0.1 psi /ft x 7,788') MASPbh = 4,131 psi — 1,251 psi — 545 psi MASPbhp = 2,335 psi 1/28/2009 Page 11 of 18 • • KBU 11 -17X Marathon Oil Company Drilling Program Alaska MASP = MASPbhp = 2,335 psi MAWP = (0.7 x Casing Burst) — (Mud Wt. — Backup Fluid Wt.) x .052 x TVD MAWP = (0.7 x 10,160) — (10.3 — 9.2) x .052 x 7,788' MAWP = 7,112 psi — 445 psi = 6,667 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: GAr 1 co lid . OO � ,ttiJ � Comments: ` • 4.11 Blowout Prevention Equipment, Testing and General Procedures Dl�X -7` � Di �j to BOP PROGRAM Casing Test Test Casing Test Fluid Pressure Size MAWP MASP press Density BOPS Low /High Casing (in) (psi) (psi) (psi) (Ib /gal) Size & Rating (psi) (1) 13 -5/8" 5M annular (1) 13 -5/8" 5M pipe ram Surface 13 3/8 2,340 0 1,500 9.2 250/2,500 (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 2,335 1,500 9.2 250/2,500 (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 6,667 2,335 2,000 10.3 250/2,500 (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 1/28/2009 Page 12 of 18 • • KBU 11 -17X 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 135/8 "x95 /8 "Fluted Casing Head 13 -5/8" 3M X 13 -3/8" Slip Loc W/ 2, 2" LPO, Landing Base for 20" Conductor, U, AA, PSL1, PR1 Mandrel 13 -5/8" 3M Studded Bottom X 13 -5/8" 5M Flg Top, W/ 2, 2- 1/16" 5M Studded Outlets, 13 5/8" x 3 1/2" Manual Tubing Head U,AA,PSL1,PR1 Slip Adapter Flange 13 -5/8" 5M X 3- 1/16" 10M W/ Seal Pocket and 3" H BPV Threads Best Practices: 1 Comments: Control lines and electric cable for the EXCAPE system will be routed through the adapter flange ports. 4.13 Directional Program Summary Build Tum 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 0 120.246 0 0 0 2 Begin Nudge 1,000.00 1,000.00 0 0 0 0 120.246 0 0 0 3 Build up Section 1.00 0 1.00 120.246 4 End of Build 1,300.00 1,299.86 1.00 0 1.00 3.000 120.246 -3.96 6.78 7.85 9 Drop Section -1.00 0 1.00 120.246 10 End of Drop 1,600.00 1,599.73 -1.00 0 1.00 0 120.246 -7.91 13.57 15.70 2 KOP 2,200.00 2,199.73 0 0 0 0 120.246 -7.91 13.57 15.70 5 Build up Section 2.50 0 2.50 120.246 6 End of Build 3,226.91 3,192.62 2.50 0 2.50 25.673 120.246 - 121.87 209.01 241.95 7 Hold Section 0 0 0 25.673 120.246 8 End of Hold 3,798.95 3,708.19 0 0 0 25.673 120.246 - 246.71 423.10 489.77 9 Drop Section -1.50 0 1.50 120.246 1/28/2009 Page 13 of 18 • • KBU 11 -17X Marathon Oil Company Drilling Program Alaska 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) 10 End of Drop 5,510.46 5,463.00 -1.50 0 1.50 0 120.246 - 436.64 748.84 866.84 11 TD 7,935.46 7,788.00 0 0 0 0 120.246 - 436.64 748.84 866.85 0 3 1000 r I 1 t 13 3/8 2000 — f . -- I c I i� + . 0 3000 w 0 - 1 . 8 I KBU 11 -17X M Beluga N - 1 o K L 4000 - -- - - - - -- - - -- - - - - - -- Q - I1 + U) 1 L 5000 ,_ - 1 4 7XMBeluga , -__ p j KBU 11 -1 '95/8 " -b - Z I. 7 X L Beluga —�� KBU 11 -1 w - KBU 11 -17X L Beluga 2 N a 6000 F- 7000 — KBU 11-17X Tyone - 1 _- 1 ; - _ - - - ; _ I_ mo � _ ` 3 1/2" ! _ I,_ KBU 11-17X TD h_ - -- KBU 11 -17X TD _ -_— ; , i _- -_ I_ KBU 11 -17X Tyonek 8000 -1000 1 I I I I I; HI; I l i 44 I i i 4 4 I 1 1 1 1 1 f l I l I I 1 -3000 -2000 -1000 0 1000 2000 3000 4000 0 1000 Vertical Section at 120.25° (2500 ft /in) West( -) /East( +) (500 ft /in) Comments: Vertical section calculated from a reference azimuth of 120.25° taken from surface location to bottom hole location. Potential Well Interference: Well Distance (ft) Depth (MD) KBU 14 -8 59.65 Surface KBU 41 -18X 119.65 Surface KBU 13 -8 171.75 1,688 KBU 24 -7X 178.96 Surface KU 11 -17 186.11 1,578 KBU 33 -7 374.80 1,056 KU 41 -18 431.94 Surface KU 24 -7 435.39 Surface KU 12 -17 521.30 Surface No serious interference exists. See attached directional plan and anticollision analysis for more details. Best Practices: 1 Comments: 1/28/2009 Page 14 of 18 • • KBU 11 -17X Marathon Oil Company Drilling Program Alaska 4.14 Directional Surveying Summary Other Survey Interval MD (ft) MWD Survey Magnetic Multishot Gyro Multishot Remarks Tool Surface 0 — 1,600' X Intermediate 1,600' — 5,585' X Production 5,585' — 7,935' X Best Practices: 1 Comments: 4.15 Drilling Fluid Program Summary Interval — TVD Minimum Inventory From To Density Gel (ft) (ft) (lb/gal) Fluid Description Additives Viscosifier Barite 0 1,600 8.8 — 9.2 Gel / Gelex Spud Mud Gel, Gelex, Caustic Flo -Vis, PolyPac Supreme UL, KCI, SafeCarb, 1,600 5,438 8.9 — 9.2 6% Flo -Pro NT w/ Safecarb Sack Black, Lo Torq, Caustic, Congor 404, Sodium Meta Bisulfate, KlaGard Flo -Vis, PolyPac Supreme UL, KCI, SafeCarb, 5,438 7,788 9.4 — 10.3 6% 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 1,600 8.8 -9.2 60 -100 N/A 15 -24 >30 <18 8.0 -9.0 <6 1,600 5,438 8.9 — 9.2 30 — 40,000 10 - 16 12 - 18 5 — 7 9 — 9.5 < 6 5,438 7,788 9.4 — 10.3 30 — 40,000 16 - 25 14 - 20 5 — 7 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. 1/28/2009 Page 15 of 18 • KBU 11 -17X Marathon Oil Company Drilling Program Alaska 4.17 Solids Control Equipment • c i a, N N N N o U 0 o m w s m N V - m m 8 Interval 0) 0 0 0 0 0 N Comments 0 — 7,935' 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: 1/28/2009 Page 16 of 18 • KBU 11 -17X 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) 20 141 141 Driven N/A 13 3/8 1,600 1,600 16 0 0 746 1,273 12.0 75 8 9 5/8 5,585 5,438 12 1/4 3,200 3,168 747 1,080 10.5 40 8 31/2 7,935 7,788 8 1/2 5,000 4,854 979 1,290 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 3 /sx) (ft (ft) (gal /sx) Type (cc) ( %) 8 hr 24 hr 13 3/8 Tail Type I Cement 12.0 507 2.51 1,273 0 11.28 Fresh 812 0 196 818 9 5/8 Tail " G" 10.5 325 3.32 1,080 3,200 12.61 Fresh 3 1/2 Tail Class "G" 15.8 1,103 1.17 1,290 5,000 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 1,600 16 Christensen MX -1 115 27.5 - 65 Motor 1,600 5,585 12 1/4 Christensen HCM 506Z M323 Up to 52 Motor 5,585 7,935 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'/4" hole an MX -18DX (IADC 447) should be used to finish this section. Back up bits for the 8' /z' hole section will consist of an MXL -18DX (IADC 447) bit. 1/28/2009 Page 17 of 18 • • KBU 11 -17X 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) 0 — 1,600' 16 650+ 1,400 69 9.3 2 — 18's Actual Data KBU 24 -7X (@ 1,636' MD) 1 -16 1,600' — 5,585' 12 1/4 650 2,224 127 9.2 9.41 6 — 13's MI Virtual Hydraulics (@ 5,585' MD) 5,585' — 7,935' 8 1/2 500 2,401 259 10.3 10.76 5 — 15's MI Virtual Hydraulics (@ 7,935' MD) Best Practices: 1 Drill all hole sections with 5" drillpipe to maximize hole cleaning hydraulics. Comments: See separate hydraulics calculations. Annular velocities in the 16 ", 12 %", and 8 1 /2" holes were calculated using 5" 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: 1/28/2009 Page 18 of 18 • • Marathon Oil Well KBU 11 -17X Diverter Flow line 21 1/4" 2M Diverter —� 16" Automatic Knife Valve Diverter Spool — R In 16" Diverter Line • • Marathon Oil Well KBU 11 -17X BOP Stack (Flow Nipple I Flow Line 13 5/8" 5M Annular Preventer 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 r r X —_ X II Elio Choke II NMI — X ----___ — 113 5/8" 5M Cross 1 3 Hydraulically Operated Valve 13 5/8" 5M x 13 5/8" 5M Drilling Spool Bottom of mud cross must be 24 -45" from ground level for Glacier 1 rig placement. 13 5/8" 5M Tubing Head Flange 0 1 Marathon Oil Well KBU 11 -17X Choke Manifold Bleed off Line to To Gas Buster To Blooey Line Shakers ..... ■11 mom n n n 1 1 1I 1 1 1 1 / I 0 0 - - °, - - 0.. - I I I I � I j 'I I i j I �I I� �I I I MIMI 1 1 - 4 1 11 4 © r _ I I ■ n Vlir © u MEM is m% i i I N 11 °° 1110111 i 3" 5M Valves TO t mim. I I 2 9/16" 10M Swaco ' 3 1/8" 5M Manually Hydraulically Operated Adjustable Choke Choke Gauge Block Choke Hose to HCR e (from BOP Stack) 0 - 6,000 psi Choke Control Pressure Gauge Pressure Sensor +Ac.r+++.rnttwtra 4Ms 64 2 " i . tf1" 4kw*a Acteumo j + ti- :: 4 At y i4 s Arum Vdritarawd . . tiK rro 000 060 ,. viows 'Awfully unnon l3 r { U 1500 euarii't1W9Y 1 0 (( 4 r m y Menifkxf tipga4 r t r swyf� xttt4# 9 > * ( D {�... Mt tN ure 8 e re t S normally 3 rar r _ aver € I I 1 move to tagh around :1000 ptessute(rxgnt} position • I ' ,e — 41!14 5. �DA�k SAA eIIAA ..-_ A i .... s • Gauge. 04000 [ '. normally 1500psm ' • Nita n tSPIatioo Valve • r i 0 • �s • L pressure =1 Eietertc P future Swath- , . . c. 'I llis mops �.— :8 ®„ ��... - € :. T purrp NMNy MOO ... 3000 pit and 130orts when 1. dw! Ma 0 • - h - Main Air ,.._.. ___ ._,.,...�,....._.�.,,..�. _ , t G CAMVOid ft 11111 r m • t .<i 11 Ern Proof Electric Motor F r ..�. AxiwiaMat RlYftairs Air Lubricator - . ` r Use SAE10, net "Pop fltf >I� St ..�.. „ 1 1 at 6 drops r `i c m - min. CheCk I L MIIIIIIMP: ,r,,,!,-,Tr,... Belt Guard - isolation Air Pressure Switch Triplex Galley Electric - Valve for {} Bypass- Normally closed. Drain Valve i t7 Air Pumps - ill or Triplex 60-1 Ratio but open with pressures i Tnpiex Pump- Swilch- Pump- f1 above 3000 psi Check oil level Kepp ".• Normally Suction Strainer 11 monthy. Fill auto open, For Air Pumps with 4Cw 40 position close for Suction Valve For Turn off pressure Air operated when 1 exceeding Pumps• reamians servicing f ■ 3000 PSI open, close during Si serviceing iJ Suction strainer for Tpilex pump clean every 30 days I . • • SECTION LINE NOT TO SCALE (NTS) 2" ALUMINUM CAP 0 ' o *CAUTION* T4N emir O 3 HIGH PRESSURE 057 y LATERAL GAS to j PIPELINE TO 41 -7 SECTION 18, T4N, R11 W, S.M., AK 2937 N 2356482.79 E 1415847.04 N ORTH J H.,rle,11, O EXISTING DRAINAGE I Z ' S RETENTION BASIN Z 420' FEL M KBU 24 -7X KBU 41 -18X KBU 14-8 (NTS) O y IS Q FUTURE WELL AS-STAKED KBU 11 -17X AS -BUILT 8' DIA. WELL CELLAR TBM 04 -15-2 NAD27 ASP ZONE 4 ELEV: 66.66' 10.2' X 10.7' N:2356293.684 SHUT DOWN BLDG. E:275390.749 11.8' x 12.6' CONTROL BLDG. 'P fp� LATITUDE: 60 °26'38.035 "N 14.2' x 16.3' _- LONGITUDE: 151 BLDG. ilk DRILL FLUIDS & ELEV. : 66.4' (MSL) -- o o CUTTING HOLDING EDGE OF CO 10.4'x20.0' f TANKS CJ 439' FNL PAD )" L BLDG. 4 `420 FEL 12.0' x 40.5' w 2" ALUMINUM CAP � 337 � `�\ BLDG10.0' BLDG J Z ■ 2 14.4' X 16.8' _ 8.2' X 19.8' ® WATER WELL ® �� BLDG. V BLDG. KBU 24 -7 �.U. 11 -17 W ® INJECTION WELL 303 12.3' X 12.3' N K.U. 41 -18 K.U. 138 BLDG. EDGE OF � 0 ' ® EXISTING PAD ® EQUIP. n BLDG. CONTACTOR BLDG. METE - 9 .3' X 9.3' a� ¢ PRODUCTION 5,34 BLDG. 3 ' ¢ FACILITIES ® KU 12 -17 0 • LDG. KENAI GAS FIELD GEL .w 9.3'X9.6' UTILITY A 1 ` �� \1\ '' PAD 41 -18 TANK �TION HEATER • \ � � F Az . BLDG. . 4 ei V as. ,`Q,. ''' S I o *. Ii 1'r •.* ♦ / \ �[,� L GRIND & BUILDING 1. BASIS OF COORDINATES IS U.S.C. & G.S. TRI STATION AUDRY IN A.SP. / °7 1 7 4 -. "j ZONE 4. (NAD 27) AVERAGE CONVERGENCE OF POINTS SHOWN: 01 °5'58" ! `'` / 2. AUDRY GEODETIC POSITION PER NGS: tor r+ =.M. SCOTT M . >/ . u LAT:60'30'50.559 - N LONG: 151 °16'37.44SW _ X = 269,866.75 Y = 2,382,045.42 ,� S 4928—S � 3) BASIS OF VERTICAL DATUM IS MEAN SEA LEVEL (LOCAL DATUM). I '' 4) NORTHEAST CORNER SEC. 18 COORDINATES DETERMINED FROM DIRECT ri -rd , SCALE SURVEY TIE TO THE TO EXISTING BLM SECTION CORNER RECOVERED AND ! I' 71°P • • ; ‘„).7' �'` i I 100 0 ' 2i NOT THE PROTRACTED SECTION CORNER VALUES. $ S PROJECT REVISION: 1 MARATHON PROJECT 11 -17X WELL ON KGF PAD 41 -18 DATE: 11 -28-08 O� CO ANY AS -BUILT SURFACE LOCATION DIAGRAM DRAWN BY: MSM ,n= NAD27 FOR INFORMATIONAL PURPOSES SCALE: 1 =1 ONLY PROJECT NO 083113 ENGINEERING /MAPPING /SURVEYING /TESTING BOOK 910. 08-22 Consulting Inc P.O. BOX 4038 SOLOOTNA. AK 99889 LOCATION SHEET VOICE: C FAX: ( EMAIL. S AMCLM4E �MCL ANECG.COM S18 T4N R11 W SEWARD MERIDIAN, ALASKA 1 of 1 EMLANE 0 N 2 3 2 KU 3 N � (n t 4 32 34 -31 9 , 4 6/DU 1` ^ N 2N 34 2 M KU KU ^ KBU 41 -6 b t -6 -6 0 KDU S 5 h KU 0 5 21 -6X 7 6 DU 6 (dial KBU 22 -6 2. 6 S 5 •.t U_ -6 MI 1S-1 plop be KTU 8 KTU sr. -�. ..n..,..,.. 6 3X 9 • 23X -� •' KBU K 4 4 5 33 -6 9 N KU 6 6 KBU6X 1 6 , 43 -6A KTU 13 -5 5 8 6 5 6 KTU 6 9 . 24 -6H KU K: 24 -6R 3 42 j, -8R KDU 6 5 4 6 24 -5 0 S . KU Z a U 2 24 -5RD 1 3 5 rn '1 4 A O d \ r 5 KDU 9 // 3 l 8 6 ' /�j� KBU 3 t f 1�" 24 -6 3 KBU O .0.1 ,. • ' 2 '' • N tnJ 11 _gX • U p ,3 , 1-7 7. '' /l.� N P r Aiti p ` KDU 2 A 6 KU 2 'r W S N� n K t 7 t� KBU 1-7X KU U 5 A y 3t_7RD O 1U 3 au KTU h KTU N '2 -7 32 -7H d 5 6 3 4 6 > KT 32 7 .i 4 6 7 5 KBU B 13 -8 KBU 6 4RD 33 -7 BU 5 > r 8 . -7 6 9 . ; -7 •:U .3-7X 6 Marathon Oil Company KBU Z#- X 9 KUH Y 41 -18 KU 24 -7 6 0 N A > 3 0 N 5 '2 11 h D V N W 0 2 70 N N KBU 11 -17X A Beluga /Tyonek PA a I Kenai Gas Field, Alaska 0.2 • TOPO! map printed on 02/29/08 from "Marathon KBU 11 -1yX Map,tpo" 151 0 17.000' W 151 °15.000' W 151 °13.000' W 151 °11.000' W WGS$4151 °09.000' W Z " 4^ . ` .ice s ri., r �f,T.tr M�'sc� 1 ' t `' ' Grav1�1 s� >+` 0 f _, . ,..+ - - _' i+�i+ ` PP' �, e t ## l ( Ptd 13 -30 1 , y . ii • : b A � , • Kalif/or Beach Road g ° o N ;,. �, Flrrr: Rhad 1 1 c i Pad 34-31 (A4araUwn Office) d I Fad 43 -32 ! r ° ', Landing g 7C t ' a `, S1a. v4e It. 1 ri3 •Y Z 1 0Ott :bilk' 1,i I, GAS HELD , ° ° " w k 5 in ,'i ° o� W 4 , . IN k0 . 4-*P • / .??\■ , ■ :', * * * • I s Y< « 1 Pd • I v <Gas !hells k-� m *ivr� I } I Yad 14 -o '''� , I �I i i 1 PaS 41 - 7 , a� 4: r. - .i 7 J , C 1 f = ' ' f 1, $ � J i KBU 1 1 -17X�� I .. LPad 41 -18 tP1 jeci Location/1 1 s * ` i4 Z O E I �, ID r Pad 3 +d4 (,4b uian :,aea] ■ 0 - . x t , • ..�- /�, a ndir r Ges 4veM � o f y ry SJp • �,, �`, r fl f f a ,R. 2 _ rCp .......___,:. - • err Z, . ° l�dt y i �. .r g ° y . p 11 created wIt T�Fi�i � U -tlC' IJync_naI iri lr 4 h-r 51 13. t. 4 .. .' - -- a '__ 151 °17.u00' W 1_1 15,000' ' ° °11.000' W WGS84 W IN M4 NATIONAL 0.0 0.5 1.0 1.5 roles 19 GEOGRAPHIC I ,, ,i, ,,� 0.0 0.5 1,0 1.5 2.0 25 km 02/29/08 h • 1r it. !--,, I- ,- _ IX w .•(,..., ..r. ;., h i •r7 , •,,, R le C • tX3 1V3H IAN! ,„ D 1.---...--- O.... / it • z ki CI- III E I ; E n Q CC iM a 0 P. VI • • . --,+.. • ---- I in ..■............... % ..■1........j x A h- . a • 1,� -1 M • M Z 4 L ., J C Ste* C .. srair5- -' - I 1 I alums Haa I J , j i . 1 r Jr- ■ I 1 •r • c1 ta a. I L. "II 1 8 x 1.1 I 1 I I ty3HVHa WI II ; L. U J ..J i ii JI k L. M O MA ATH O N Oil Com Any BAKE HUGHES L Cook Inlet, Alaska (Kenai Penninsula) Slot: slot #KBU11 -7X MARATHON Field: Kenai Gas Field (NAD83) Well: KBU11 -17X INTEQ Facility: Pad 41 -18 Wellbore: KBU11 -17X Plot reference wellpath is KBU 11 -17X Version #3A True vertical depths are referenced to Planning (RKB) Grid System: NAD83 / TM Alaska State Plane, Zone 4 (5004), US feet Measured depths are referenced to Planning (RKB) North Reference: True north Planning (RKB) to Mean Sea Level: 88 feet Scale: True distance Mean Sea Level to Mud line (Facility: Pad 41 -18): 0 feet Depths are in feet Coordinates are in feet referenced to Slot Created by: jonethoh on 13- Jan -09 Location Information Facility Name Grid East (USft) Grid North (USft) Latitude Longitude Pad 41 -18 1415847.040 2356482.790 60 °26'40.256 "N 151 0 14'36.875 "W Slot Local N (ft) Local E (ft) Grid East (USft) Grid North (USft) Latitude Longitude slot #KBU11 -7X - 441.74 - 419.04 1415419.753 2356049.058 60 °26'35.905 "N 151 0 14'45.227 "W Comment Planning (RKB) to Mud line (Facility: Pad 41 -18) 88ft Mean Sea Level to Mud line (Facility: Pad 41 -18) Oft Planning (RKB) to Mean Sea Level 88ft Well Profile Data Design Comment MD (ft) Inc ( °) Az ( °) TVD (ft) Local N (ft) Local E (ft) DLS ( °/100ft) VS (ft) Est. RKB 88' 0.00 0.000 120.246 0.00 0.00 0.00 0.00 0.00 Begin Nudge 1000.00 0.000 120.246 1000.00 0.00 0.00 0.00 0.00 Begin Drop 1300.00 3.000 120.246 1299.86 -3.96 6.78 1.00 7.85 End D'nl Nudge 1600.00 0.000 120.246 1599.73 -7.91 13.57 1.00 15.70 KOP 2200.00 0.000 120.246 2199.73 -7.91 13.57 0.00 15.70 End of Build 3226.91 25.673 120.246 3192.62 - 121.87 209.01 2.50 241.95 Begin Angle Drop 3798.95 25.673 120.246 3708.19 - 246.71 423.10 0.00 489.77 End of Drop 5510.46 0.000 120.246 5363.00 - 436.64 748.84 1.50 866.84 Middle Beluga 5610.46 0.000 120.246 5463.00 - 436.64 748.84 0.00 866.84 Lower Beluga 6335.46 0.000 120.246 6188.00 - 436.64 748.84 0.00 866.84 Tyonek 7435.46 0.000 120.246 7288.00 - 436.65 748.84 0.00 866.85 I TD 7935.46 0.000 120.246 7788.00 - 436.65 748.84 0.00 866.85 Targets Name MD (ft) TVD (ft) Local N (ft) Local E (ft) Grid East (USft) Grid North (USft) Latitude Longitude KBU11 -17X Middle Beluga(NAD83) 13- Nov -08 5610.46 5463.00 - 436.64 748.84 1416160.17 2355598.35 60 °26'31.605 "N 151 0 14'30.302 "W KBU11 -17X Lower Beluga(NAD83) 13- Nov -08 6335.46 6188.00 - 436.64 748.84 1416160.17 2355598.35 60 0 26'31.605 "N 151 0 14'30.302 "W KBU11 -17X Tyonek(NAD83) 13- Nov -08 7435.46 7288.00 - 436.64 748.84 1416160.17 2355598.35 60 0 26'31.605 "N 151 °14'30.302 "W KBU11 -17X TD(NAD83) 13- Nov -08 7935.46 7788.00 - 436.64 748.84 1416160.17 2355598.35 60 0 26'31.605 "N 151 0 14'30.302 "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 1600.27 1600.27 0.00 1600.00 0.00 0.00 -7.91 13.57 KBU11 -17X 13 3/8" Casing Surface 0.00 1600.27 1600.27 0.00 1600.00 0.00 0.00 -7.91 13.57 KBU11 -17X 12 1/4" Open Hole 1600.27 5585.46 3985.19 1600.00 5438.00 -7.91 13.57 - 436.64 748.84 KBU11 -17X 9 5/8" Casing Intermediate 0.00 5585.46 5585.46 0.00 5438.00 0.00 0.00 - 436.64 748.84 KBU11 -17X 8 1/2" Open Hole 5585.46 7935.46 2350.00 5438.00 7788.00 - 436.64 748.84 - 436.65 748.84 KBU11 -17X 3 1/2" Casing Production 0.00 7935.46 7935.46 0.00 7788.00 0.00 0.00 - 436.65 748.84 KBU11 -17X rrr11 MAIATHONOiICom• pan BAKE R HUGHES MARATHON Location: Cook Inlet, Alaska (Kenai Penninsula) Slot: slot #KBU11- X INTEQ Field: Kenai Gas Field (NAD83) Well: KBU11 -17X Facility: Pad 41 -18 Wellbore: KBU11 -17X Plot reference wellpath is KBU11 -17X Version #3A . True vertical depths are referenced to Planning (RKB) Grid System: NAD83 / TM Alaska State Plane, Zone 4 (5004), US feet Measured depths are referenced to Planning (RKB) North Reference: True north Planning (RKB) to Mean Sea Level: 88 feet Scale: True distance Mean Sea Level to Mud line (Facility: Pad 41 -18): 0 feet Depths are in feet Coordinates are in feet referenced to Slot Created by: jonethoh on 13- Jan -09 -600 — s ale nch =zoos Easting (ft) �` -100 0 100 200 300 400 500 600 700 800 900 100 / __ T4KB 88' slot #KBU11 -7X RKB 88' 13 3/8" Casing Surface — o 600 — Begin Nudge — -100 1200 — 1.00 ° /100ft End of Buil. Begin Drop 1.00 ° /100ft A L End D'nI Nudge — - 200 Z 13 3/8" Casing Surface 0 1800 — Begin Angle Drop 7 5 an KOP — -300 2400 — 2.50 ° /100ft — -400 e 3000 — 9 5/8" Casing Intermediate b k !ij 6 End of Build TD 7, 11 3 1/2" Casing Production 4 . — -500 KBU11 -17X Middle Beluga NAD83 13- Nov -08 : C 3600 — KBU11 -17X Lower Belugqa NAD83 13- Nov -08 Q Begin Angle Drop KBU11 -17X T onek(f fA 83 13- ov -08 a) K BU11- 17X 1)3- Nov -08 O — -600 a o f 4200 a) > 1.50 ° /100ft a) i 4800 — i 500 — End of Drop A t 9 5/8" Casing Intermediate KBU11 -17X Middle Beluga Middle Beluga(NAD83) 13 -Nov -08 6000 — KBU11 -17X Lower Beluga(NAD83) Lower Beluga 13-Nov-08 6600 — 7200 — KBU11 -17X Tyonek(NAD83) Tyonek 13- Nov -08 KBU11 -17X 1 7800 — TD(NAD83) '.....` TD 13- Nov -08 � 3 1/2" Casing Production C 8400 — v X 9000 1 1 -600 0 600 1200 1800 Vertical Section (ft)scae inch =12000 Azimuth 120.25 with reference 0.00 N, 0.00 E Planned Wellpath Geo • raphic Report Report Generated 14- Jan -09 at 06:50:13 Projection System NAD83 / TM Alaska State Plane, Zone 4 (5004), US feet Operator MARATHON Oil Company North Reference True Area Cook Inlet, Alaska (Kenai Penninsula) Scale 0.999958 Field _ Kenai Gas Field (NAD83) Horizontal Reference Point of y Facilit Pad 41 -18 Vertical Reference Point Planning (RKB) Slot #KBU11 -7X MD Reference Point Planning (RKB) Well KBU11 -17X Field Vertical Reference Mean Sea Level Weiibore KBU11 -17X Planning (RKB) to Facility Vertical Datum 88.00 ft Wellpath KBU11 -17X Version #3A Planning (RKB) to Mean Sea Level 88.00 ft Welibore Last Revised 07/04/2008 Facility Vertical Datum to Mud Line (Facility) 0.00 ft Sidetrack from (none) Section Origin X User Jonethoh Section Origin Y N 0.00 5 Calculation method - Section Azimuth ° Local North Local East Grid East Grid North Latitude Longitude [ft] ft] [tlSft] (USft] Slot Location .__._ - 441.74 -419.04 1415419.75 2356049.06 60 °26'35.905 "N 151°14'45.227"W Facility Reference Pt t 1415847.04 2356482.79 60 °26'40.256 "N 151 °14'36.875 "W Field Reference Pt 1410937.15 2361824.52 60 °27'31.931 "N 151 °1616.783 "W * NAD 83 coordinates are converted to NAD 27 using Corpscon 6.0.1 (US Army Corps of En ineers TVD 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] [] [ °] [ft] [ft] [ft] [ft] [sry ft] [sry ft] [ft] [ft] [° /100ft] [1 [°/100ft] ("MOON [ft] 0.00 0.00 120.25 0.00 -88.00 0.00 0.00 1415419.75 2356049.06 275399.569 2356287.728 60 °26'35.905 "14 151 °14'45.227" 0.00 0.00 0.00 0.00 0.00 100.00 0.00 120.25 100.00 12.00 0.00 0.00 1415419.75 2356049.06 275399.569 2356287.728 60 °26'35.905 "N 151 °14'45.227" 0.00 0.00 0.00 0.00 0.00 200.00 0.00 120.25 200.00 112.00 0.00 0.00 1415419.75 2356049.06 275399.569 2356287.728 60 ° 26'35.905 "N 151 °14'45.227" 0.00 0.00 0.00 0.00 0.00 300.00 0.00 120.25 300.00 212.00 0.00 0.00 1415419.75 2356049.06 275399.569 2356287.728 60 ° 26'35.905 "N 151 °14'45.227" 0.00 0.00 0.00 0.00 0.00 400.00 0.00 120.25 400.00 312.00 0.00 0.00 1415419.75 2356049.06 275399.569 2356287.728 60 °26'35.905 "N 151 °14'45.227" 0.00 0.00 0.00 0.00 0.00 500.00 0.00 120.25 500.00 412.00 0.00 0.00 1415419.75 2356049.06 275399.569 2356287.728 60 °26'35.905 "N 151 °14'45.227" 0.00 0.00 0.00 0.00 0.00 600.00 0.00 120.25 600.00 512.00 0.00 0.00 1415419.75 2356049.06 275399.569 2356287.728 60 °26'35.905 "N 151 °14'45.227" 0.00 0.00 0.00 0.00 0.00 700.00 0.00 120.25 700.00 612.00 0.00 0.00 1415419.75 2356049.06 275399.569 2356287.728 60 °26'35.905 "N 151 °14'45.227" 0.00 0.00 0.00 0.00 0.00 800.00 0.00 120.25 800.00 712.00 0.00 0.00 1415419.75 2356049.06 275399.569 2356287.728 60 °26'35.905 "14 151 °14'45.227" 0.00 0.00 0.00 0.00 0.00 900.00 0.00 120.25 900.00 812.00 0.00 0.00 1415419.75 2356049.06 275399.569 2356287.728 60 °26'35.905 "N 151 °14'45.227" 0.00 0.00 0.00 0.00 0.00 1000.00 0.00 120.25 1000.00 912.00 0.00 0.00 1415419.75 2356049.06 275399.569 2356287.728 60 °26'35.905 "N 151 °14'45.227" 0.00 120.25 0.00 0.00 0.00 1100.00 1.00 120.25 1099.99 1011.99 -0.44 0.75 1415420.50 2356048.60 275400.319 2356287.268 60 °26'35.901 "N 151 °14'45.212" 1.00 0.00 1.00 0.00 0.87 1200.00 2.00 120.25 1199.96 1111.96 -1.76 3.02 1415422.73 2356047.24 275402.549 2356285.908 60 °26'35.888 "N 151 °14'45.167" 1.00 0.00 1.00 0.00 3.49 1300.00 3.00 120.25 1299.86 1211.86 -3.96 6.78 1415426.46 2356044.98 275406.279 2356283.648 60 °26'35.866 "N 151 °14'45.092" 1.00 180.00 1.00 0.00 7.85 1400.00 2.00 120.25 1399.77 1311.77 -6.15 10.55 1415430.19 2356042.71 275410.009 2356281.378 60 °26'35.845 "14 151 °14'45.017" 1.00 180.00 -1.00 0.00 12.21 1500.00 1.00 120.25 1499.73 1411.73 -7.47 12.81 1415432.42 2356041.35 275412.239 2356280.018 60 °26'35.832 "14 151 °14'44.972" 1.00 180.00 -1.00 0.00 14.83 1600.00 0.00 120.25 1599.73 1511.73 -7.91 13.57 1415433.17 2356040.89 275412.989 2356279.558 60 °26'35.827 "N 151 °14'44.957" 1.00 0.00 -1.00 0.00 15.70 1700.00 0.00 120.25 1699.73 1611.73 -7.91 13.57 .1415433.17 2356040.89 275412.989 2356279.558 60 °26'35.827 "N 151 °14'44.957" 0.00 0.00 0.00 0.00 15.70 1800.00 0.00 120.25 1799.73 1711.73 -7.91 13.57 1415433.17 2356040.89 275412.989 2356279.558 60 ° 26'35.827"N 151 °14'44.957 0.00 0.00 0.00 0.00 15.70 1900.00 0.00 120.25 1899.73 1811.73 -7.91 13.57 1415433.17 2356040.89 275412.989 2356279.558 60 °26'35.827 "N 151 °14'44.957" 0.00 0.00 0.00 0.00 15.70 2000.00 0.00 120.25 1999.73 1911.73 -7.91 13.57 1415433.17 2356040.89 275412.989 2356279.558 60 ° 26'35.827 "N 151 °14'44.957" 0.00 0.00 0.00 0.00 15.70 2100.00 0.00 120.25 2099.73 2011.73 -7.91 13.57 1415433.17 2356040.89 275412.989 2356279.558 60 °26'35.827 "14 151 °14'44.957" 0.00 0.00 0.00 0.00 15.70 2200.00 0.00 120.25 2199.73 2111.73 -7.91 13.57 1415433.17 2356040.89 275412.989 2356279.558 60 °26'35.827 "14 151 °14'44.957" 0.00 120.25 0.00 0.00 15.70 2300.00 2.50 120.25 2299.69 2211.69 -9.01 15.45 1415435.03 2356039.76 275414.849 2356278.428 60 °26'35.817 "N 151 °14'44.919" 2.50 0.00 2.50 0.00 17.89 • 2400.00 5.00 120.25 2399.47 2311.47 -12.30 21.10 1415440.62 2356036.36 275420.439 2356275.028 60 °26'35.784 "N 151 °14'44.807" 2.50 0.00 2.50 0.00 24.43 2500.00 7.50 120.25 2498.87 2410.87 -17.79 30.50 1415449.91 2356030.70 275429.729 2356269.367 60 °26'35.730 "N 151 °14'44.619" 2.50 0.00 2.50 0.00 35.31 2600.00 10.00 120.25 2597.70 2509.70 -25.45 43.64 1415462.91 2356022.79 275442.729 2356261.457 60 °26'35.655 "N 151 °14'44.357" 2.50 0.00 2.50 0.00 50.52 2700.00 12.50 120.25 2695.77 2607.77 -35.28 60.50 1415479.57 2356012.65 275459.39 2356251.317 60 °26'35.558 "N 151 °14'44.021" 2.50 0.00 2.50 0.00 70.03 2800.00 15.00 120.25 2792.90 2704.90 -47.25 81.03 1415499.87 2356000.29 275479.69 2356238.956 60 °26'35.440 "14 151 °14'43.612" 2.50 0.00 2.50 0.00 93.80 2900.00 17.50 120.25 2888.89 2800.89 -61.34 105.20 1415523.77 2355985.74 275503.591 2356224.406 60 °26'35.301 "N 151 °14'43.130" 2.50 0.00 2.50 0.00 121.78 3000.00 20.00 120.25 2983.58 2895.58 -77.53 132.97 1415551.22 2355969.03 275531.041 2356207.695 60 °26'35.142 "N 151 °14'42.577" 2.50 0.00 2.50 0.00 153.92 3100.00 22.50 120.25 3076.77 2988.77 -95.79 164.27 1415582.18 2355950.19 275562.002 2356188.855 60 °26'34.962 "N 151 °14'41.953" 2.50 0.00 2.50 0.00 190.16 3200.00 25.00 120.25 3168.30 3080.30 - 116.07 199.06 1415616.58 2355929.25 275596.403 2356167.914 60 ° 26'34.762 "N 151 °14'41.260" 2.50 0.00 2.50 0.00 230.43 3226.91 25.67 120.25 3192.62 3104.62 - 121.87 209.01 1415626.41 2355923.26 275606.233 2356161.924 60 °26'34.705 "N 151 °14'41.061" 2.50 0.00 2.50 0.00 241.95 3300.00 25.67 120.25 3258.49 3170.49 - 137.82 236.36 1415653.46 2355906.80 275633.283 2356145.463 60 °26'34.548 "N 151 °14'40.516" 0.00 0.00 0.00 0.00 273.61 3400.00 25.67 120.25 3348.62 3260.62 - 159.65 273.79 1415690.46 2355884.27 275670.284 2356122.932 60 °26'34.333 "N 151 °14'39.770" 0.00 0.00 0.00 0.00 316.93 3500.00 25.67 120.25 3438.75 3350.75 - 181.47 311.22 1415727.47 2355861.74 275707.295 2356100.401 60 °26'34.118 "N 151 °14'39.024" 0.00 0.00 0.00 0.00 360.26 3600.00 25.67 120.25 3528.88 3440.88 - 203.29 348.64 1415764.47 2355839.22 275744.296 2356077.881 60 °26'33.903 "N 151 °14'38.278" 0.00 0.00 0.00 0.00 403.58 3700.00 25.67 120.25 3619.00 3531.00 - 225.11 386.07 1415801.48 2355816.69 275781.306 2356055.35 60 °26'33.688 "N 151 °14'37.532" 0.00 0.00 0.00 0.00 446.90 3798.95 25.67 120.25 3708.19 3620.19 - 246.71 423.10 1415838.09 2355794.40 275817.917 2356033.059 60 °26'33.476 "14 151 °14'36.794" 0.00 180.00 0.00 0.00 489.77 3800.00 25.66 120.25 3709.13 3621.13 - 246.94 423.49 1415838.48 2355794.17 275818.307 2356032.829 60 °26'33.473 "14 151 °14'36.786" 1.50 180.00 -1.50 0.00 490.23 3900.00 24.16 120.25 3799.83 3711.83 - 268.15 459.87 1415874.45 2355772.27 275854.278 2356010.928 60 °26'33.265 "14 151 °14'36.061" 1.50 180.00 -1.50 0.00 532.34 4000.00 22.66 120.25 3891.60 3803.60 - 288.16 494.19 1415908.38 2355751.62 275888.209 2355990.277 60 °26'33.067 "N 151 °14'35.377" 1.50 180.00 -1.50 0.00 572.07 4100.00 21.16 120.25 3984.37 3896.37 - 306.95 526.42 1415940.25 2355732.22 275920.079 2355970.877 60 °26'32.882 "N 151 °14'34.735" 1.50 180.00 -1.50 0.00 609.37 4200.00 19.66 120.25 4078.10 3990.10 - 324.52 556.54 1415970.03 2355714.09 275949.86 2355952.746 60 °26'32.709 "N 151 °14'34.135" 1.50 180.00 -1.50 0.00 644.24 4300.00 18.16 120.25 4172.70 4084.70 - 340.84 584.53 1415997.71 2355697.24 275977.541 2355935.895 60 °26'32.549 "N 151 °14'33.577" 1.50 180.00 -1.50 0.00 676.64 4400.00 16.66 120.25 4268.12 4180.12 - 355.91 610.37 1416023.26 2355681.69 276003.091 2355920.345 60 °26'32.400 "N 151 °14'33.062" 1.50 j - 180.00 -1.50 0.00 706.56 4500.00 15.16 120.25 4364.28 4276.28 - 369.71 634.05 1416046.67 2355667.44 276026.502 2355906.094 60 °26'32.264 "N 151 °14'32.590" 1.50 180.00 -1.50 0.00 733.97 1 4600.00 13.66 120.25 4461.14 4373.14 - 382.24 655.54 1416067.92 2355654.50 276047.752 2355893.154 60 °26'32.141 "N 151 °14'32.161" 1.50 180.00 -1.50 0.00 758.85 Page 1 of 2' Planned Wellpath Geographic Report Report Generated 14- Jan -09 at 06:50:13 Projection System NAD83 / TM Alaska State Plane, Zone 4 (5004), US feet Operator MARATHON Oil Company North Reference True Area Cook Inlet, Alaska (Kenai Penninsula) Scale _ 0.999958 Field Kenai Gas Field (NAD83) Horizontal Reference Point ' i ;[ Slot Facility Pad 41 -18 Vertical Reference Point Planning (RKB) Slot slot #KBU11 -7X MD Reference Point = Planning (RKB) Well - _ - -- EMU Field Vertical Reference : Mean Sea Level Wellbore EMEISMI Planning (RKB) to Facility Vertical Datum'__ 88.00 ft Wellpath KBU11 -17X Version #3A Punning (RKB) to Mean Sea Level 88.00 ft Weilbore Last Revised 07/04/2008 Facility Vertical Datum to Mud Line (Facility) 0.00 ft Sidetrack from Section Origin X E 0.00 ft User Jonethoh Section Origin Y N 0.00 ft Calculation method Minimum curvature Section Azimuth 120.25° Loc31 East Grid East Grid North Latitude Longitude [ft] - ft] [USft] [USft] Slot R ef en Reference Pt` -441.74 I 1.74 - 419.04 1415847. 0 4 235648479 60 ° 26 00 '425 6 'N 151 °14' I 6.875 "W * NAD 83 coordinates are converted to NAD 27 using Corpscon 6.0.1 (US Ar C • • of En ineers TVD 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] [°] [°] [ft] [ft] [ft] [ft] [sry ft] [sry ft] [ft] [ft] [° /100ft] [°] ( *1100ft] [° /100ft) [ft] 4700.00 12.16 120.25 4558.61 4470.61 - 393.50 674.84 1416087.00 2355642.89 276066.832 2355881.543 60 °26'32.030 "N 151 °14'31.777" 1.50 180.00 -1.50 0.00 781.18 4800.00 10.66 120.25 4656.63 4568.63 - 403.46 691.92 1416103.89 2355632.60 276083.723 2355871.253 60 °26'31.932 "N 151 °14'31.436" 1.50 180.00 -1.50 0.00 800.96 4900.00 9.16 120.25 4755.13 4667.13 - 412.12 706.79 1416118.59 2355623.66 276098.423 2355862.313 60°26'31.847"N 1.50 - 180.00 -1.50 0.00 818.16 5000.00 7.66 120.25 4854.06 4766.06 - 419.49 719.42 1416131.07 2355616.06 276110.903 2355854.712 60 ° 26'31.774 "N 151 °14'30.888" 1.50 180.00 -1.50 0.00 832.78 5100.00 6.16 120.25 4953.33 4865.33 - 425.55 729.80 1416141.35 2355609.80 276121.184 2355848.452 60 °26'31.714 "N 151 °14'30.681" 1.50 180.00 -1.50 0.00 844.81 5200.00 4.66 120.25 5052.88 4964.88 - 430.29 737.94 1416149.39 2355604.90 276129.224 2355843.552 60 °26'31.668 "N 151 °14'30.519" 1.50 180.00 -1.50 0.00 854.23 5300.00 3.16 120.25 5152.65 5064.65 - 433.72 743.83 1416155.21 2355601.36 276135.044 2355840.012 60 °26'31.634 "N 151 °14'30.402" 1.50 180.00 -1.50 0.00 861.05 5400.00 1.66 120.25 5252.55 5164.55 - 435.84 747.46 1416158.80 2355599.18 276138.634 2355837.832 60 °26'31.613 "N 151 °14'30.330" 1.50 180.00 -1.50 0.00 865.25 5500.00 0.16 120.25 5352.54 5264.54 - 436.64 748.83 1416160.15 2355598.36 276139.984 2355837.012 60 °26'31.605 "N 151 °14'30.302" 1.50 180.00 -1.50 0.00 866.83 5510.46 0.00 120.25 5363.00 5275.00 - 436.64 748.84 1416160.17 2355598.35 276140.004 2355837.002 60 °26'31.605 "N 151 °14'30.302" 1.50 0.00 -1.50 0.00 866.84 5600.00 0.00 120.25 5452.54 5364.54 - 436.64 748.84 1416160.17 2355598.35 276140.004 2355837.002 60 °26'31.605 "N 151 °14'30.302" 0.00 0.00 0.00 0.00 866.84 5610.46 0.00 120.25 5463.00 5375.00 - 436.64 748.84 1416160.17 2355598.35 276140.004 2355837.002 60 °26'31.605 "N 151 °14'30.302" 0.00 0.00 0.00 0.00 866.84 5700.00 0.00 120.25 5552.54 5464.54 - 436.64 748.84 1416160.17 2355598.35 276140.004 2355837.002 60 °26'31.605 "N 151 °14'30.302" 0.00 0.00 0.00 0.00 866.84 5800.00 0.00 120.25 5652.54 5564.54 - 436.64 748.84 1416160.17 2355598.35 276140.004 2355837.002 60 °26'31.605 "N 151 °14'30.302" 0.00 0.00 0.00 0.00 866.84 5900.00 0.00 120.25 5752.54 5664.54 - 436.64 748.84 1416160.17 2355598.35 276140.004 2355837.002 60 °26'31.605 "N 151 °14'30.302" 0.00 0.00 0.00 0.00 866.84 6000.00 0.00 120.25 5852.54 5764.54 - 436.64 748.84 1416160.17 2355598.35 276140.004 2355837.002 60 °26'31.605 "N 151 °14'30.302" 0.00 0.00 0.00 0.00 866.84 6100.00 0.00 120.25 5952.54 5864.54 - 436.64 748.84 1416160.17 2355598.35 276140.004 2355837.002 60 °26'31.605 "N 151 °14'30.302" 0.00 0.00 0.00 0.00 866.84 6200.00 0.00 120.25 6052.54 5964.54 - 436.64 748.84 1416160.17 2355598.35 276140.004 2355837.002 60 °26'31.605 "N 151 °14'30.302" 0.00 0.00 0.00 0.00 866.84 6300.00 0.00 120.25 6152.54 6064.54 - 436.64 748.84 1416160.17 2355598.35 276140.004 2355837.002 60 ° 26'31.605 "N 151 °14'30.302" 0.00 0.00 0.00 0.00 866.84 6335.46 0.00 120.25 6188.00 6100.00 - 436.64 748.84 1416160.17 2355598.35 276140.004 2355837.002 60 ° 26'31.605 "N 151 °14'30.302" 0.00 0.00 0.00 0.00 866.84 6400.00 0.00 120.25 6252.54 6164.54 - 436.64 748.84 1416160.17 2355598.35 276140.004 2355837.002 60 °26'31.605 "N 151 °14'30.302" 0.00 0.00 0.00 0.00 866.84 6500.00 0.00 120.25 6352.54 6264.54 - 436.64 748.84 1416160.17 2355598.35 276140.004 2355837.002 60 °26'31.605 "N 151 °14'30.302" 0.00 0.00 0.00 0.00 866.85 6600.00 0.00 120.25 6452.54 6364.54 - 436.64 748.84 1416160.17 2355598.35 276140.004 2355837.002 60 °26'31.605 "N 151 °14'30.302" 0.00 0.00 0.00 0.00 866.85 6700.00 0.00 120.25 6552.54 6464.54 - 436.64 748.84 1416160.17 2355598.35 276140.004 2355837.002 60 °26'31.605 "N 151 °14'30.302" 0.00 0.00 0.00 0.00 866.85 • 6800.00 0.00 120.25 6652.54 6564.54 - 436.64 748.84 1416160.17 2355598.35 276140.004 2355837.002 60 °26'31.605 "N 151 °14'30.302 0.00 0.00 0.00 0.00 866.85 6900.00 0.00 120.25 6752.54 6664.54 - 436.65 748.84 1416160.17 2355598.35 276140.004 2355837.002 60 °26'31.605 "N 151 °14'30.302" 0.00 0.00 0.00 0.00 866.85 7000.00 0.00 120.25 6852.54 6764.54 - 436.65 748.84 1416160.17 2355598.35 276140.004 2355837.002 60 °26'31.605 "N 151 °14'30.302" 0.00 0.00 0.00 0.00 866.85 7100.00 0.00 120.25 6952.54 6864.54 - 436.65 748.84 1416160.17 2355598.35 276140.004 2355837.002 60 °26'31.605 "N 151 °14'30.302" 0.00 0.00 0.00 0.00 866.85 7200.00 0.00 120.25 7052.54 6964.54 - 436.65 748.84 1416160.17 2355598.35 276140.004 2355837.002 60 °26'31.605 "N 151 °14'30.302" 0.00 0.00 0.00 0.00 866.85 7300.00 0.00 120.25 7152.54 7064.54 - 436.65 748.84 1416160.17 2355598.35 276140.004 2355837.002 60 °26'31.605 "N 151 ° 14'30.302" 0.00 0.00 0.00 0.00 866.85 7400.00 0.00 120.25 7252.54 7164.54 - 436.65 748.84 1416160.17 2355598.35 276140.004 2355837.002 60 °26'31.605 "N 151 °14'30.302" 0.00 0.00 0.00 0.00 866.85 7435.46 0.00 120.25 7288.00 7200.00 - 436.65 748.84 1416160.17 2355598.35 276140.004 2355837.002 60 °26'31.605 "N 151 °14'30.302" 0.00 0.00 0.00 0.00 866.85 7500.00 0.00 120.25 7352.54 7264.54 - 436.65 748.84 1416160.17 2355598.35 276140.004 2355837.002 60 ° 26'31.605 "N 151 °14'30.302" 0.00 0.00 0.00 0.00 866.85 7600.00 0.00 120.25 7452.54 7364.54 - 436.65 748.84 1416160.17 2355598.35 276140.004 2355837.002 60 °26'31.605 "N 151 ° 14'30.302" 0.00 0.00 0.00 0.00 866.85 7700.00 0.00 120.25 7552.54 7464.54 - 436.65 748.84 1416160.17 2355598.35 276140.004 2355837.002 60 °26'31.605 "N 151 °14'30.302" 0.00 0.00 0.00 0.00 866.85 7800.00 0.00 120.25 7652.54 7564.54 - 436.65 748.84 1416160.17 2355598.35 276140.004 2355837.002 60 °26'31.605 "N 151 °14'30.302" 0.00 0.00 0.00 0.00 866.85 7900.00 0.00 120.25 7752.54 7664.54 - 436.65 748.84 1416160.17 2355598.35 276140.004 2355837.002 60 °26'31.605 "N 151 °14'30.302" 0.00 0.00 0.00 0.00 866.85 7935.46 0.00 120.25 7788.00 7700.00 - 436.65 748.84 1416160.17 2355598.35 276140.004 2355837.002 60 ° 26'31.605 "N 151 °14'30.302" 0.00 0.00 0.00 0.00 866.85 Page 2 of 2 Planned Wellpath Report BA I r KBU11 -17X Version #3A HUGHES MARATHON Page 1 of 5 It FEQ REFERENCE WELLPATH IDENTIFICATION . Operator MARATHON Oil Company Slot slot #KBU11 -7X Cook Inlet, Alaska (Kenai Penninsula) E KBU11 -17X Field Kenai Gas Field (NAD83) Wellbore KBU11 -17X Pad 41 -18 REPORT SETUP INFORMATION Projection System NAD83 / TM Alaska State Plane, Zone 4 (5004), US feet Software System WellArchitect® 2.0 North Reference True MIIIIIIIMIIIIIIIN 0.999958 Report Generated 13- Jan -09 at 11:26:11 p Convergence at slot 1.08° West Database /Source file WA Anchorage /KBU11- 17X.xml , WELLPATH LOCATION Local coordinates Grid coordinates Geographic coordinates North[ft] Easting[USft] Northing[USft] Latitude Longitude Slot Location - 441.74 - 419.04 1415419.75 2356049.06 60 °26'35.905 "N 151 °14'45.227 "W Facility Reference Pt 1111111111111111111111.11.11111111 1415847.04 2356482.79 60 °26'40.256 "N 151 °14'36.875 "W Field Reference Pt IIIIIIIIIIIIIIIIMI 1410937.15 2361824.52 60°273 1.931 "N 151 ° 16' 16.783 "W WELLPATH DATUM Calculation method Planning RKB) to Facility Vertical Datum 88.00ft Horizontal Reference Pt Slot Planning (RKB) to Mean Sea Level 88.00ft Vertical Reference Pt Planning (RKB) Facility Vertical Datum to Mud Line (Facility) 0.00ft MD Reference Pt Planning (RKB) Section Origin N 0.00, E 0.00 ft Field Vertical Reference tallf=53 Section Azimuth 120.25° Planned Wellpath Report BAKER man KBU11 -17X Version #3A H HUGHES MARATHON Page 2 of 5 INTEQ REFERENCE %VEL -PATH IDENTIFICATION Operator MARATHON Oil Company Slot slot #KBU11 -7X Area Cook Inlet, Alaska (Kenai Penninsula) Well KBU11 -17X Field Kenai Gas Field (NAD83) Wellbore KBU11 -17X Facility Pad 41 -18 -. ELLPATH 87 stations , 4latediextra ! olated station MD Inclination Mil TVD IIEN North Grid East Grid North DLS Build Rate Turn Rate Comments ft [ °] ft ]ft] �I [sry ft] sry ft ° /100ft °/100ft] ° /100ft 0.00 0.000 120.246 0.00 0.00 0.00 0.00 1415419.75 2356049.06 0.00 0.00 0.00 Est. RKB 88' 100.001 0.000 120.246 100.00 0.00 0.00 0.00 1415419.75 2356049.06 0.00 0.00 0.00 200.001 0.000 120.246 200.00 0.00 0.00 0.00 1415419.75 2356049.06 0.00 0.00 0.00 11111111111,111. 300.001 0.000 120.246 300.00 0.00 0.00 0.00 1415419.75 2356049.06 0.00 0 0.00_1111111. 500.001 0.000 120.246 500.00 0.00 0.00 , 0.00 1415419.75 2356049.06 0.00 0.00 0.00 600.00 0.000 120.246 600.00 0.00 0.00 0.00 1415419.75 2356049.06 0.00. 0.00 0.00_ 700.001 0.000 120.246 700.00 0.00 0.00 0.00 1415419.75 2356049.06 0.00 0.00 0.001 800.001 0.000 120.246 800.00 0.00 0.00 0.00 1415419.75 2356049.06 0.00 0.00 0.00 1000.00 0.000 120.246 1000.00 0.00 0.00 0.00 1415419.75 2356049.06 0.00 0.00 0.00 Begin Nudge 1100.00 1.000 120.246 1099.99 0.87 -0.44 0.75 1415420.50 2356048.60 1.00 1.00 0.00 1200.001 2.000 120.246 1199.96 3.49 -1.76 3.02 1415422.73 2356047.24 1.00 1.00 0.00 -M 1 1300.00 3.000 120.246 1299.86 7.85 -3.96 6.78 1415426.46 2356044.98 1.00 1.00 0.O0 Begin Drop _-. - 3 = 1I I1! h - I I I 1 1 1 1 1 I 1500.0 1.000 120.246 1499.73 14.83 -7.47 12.81 1415432.42 2356041.35 1.00 -1.00 0.00111111111111111r 1600.00 ! 0.000 120.246 1599.73 15.70 -7.91 111111E01 1415433.17 2356040.89 1.00 -1.00 0.00 End D'n1 Nudge 1700.001 0.000 120.246 1699.73 15.70 -7.91 Magi 1415433.17 2356040.89 0.00 0.00 0.00 1800.001 0.000 120.246 1799.73 15.70 -7.91 ® 1415433.17 2356040.89 0.00 0.00 0.00 2000.001 0.000 120.246 1999.73 15.70 -7.91 11111111M1 1415433.17 2356040.89 0.00 0.00 0.00 2100.00 0.000 120.246 2099.73 15.70 -7.91 ® 1415433.17 2356040.89 0.00 0.00 0.00 MIIIIIIIIIIMII 2200.00 0.000 120.246 2199.73 15.70 -7.91 13.57 1415433.17 2356040.89 0.00 0.00 0.00 OP 2300.001 2.500 120.246 2299.69 17.89 -9.01 15.45 1415435.03 2356039.76 2.50 2.50 0.00 -- 2500/001 ;t °01 7.500 120.246 2498.87 ® - 17.79 30.50 1415449.91 2356030.70 2.5 2.50 0.00®�� 2600.00 10.000 120.246 2597.70 50.52 -25.45 43.64 1415462.91 2356022.79 2.50 2 . 50 0.00 2700.00 1 12.500 120.246 2695.77 70.03 -35.28 60.50 1415479.57 2356012.65 2.50 2.50 0.00 111.111111 2800.00 15.000 120.246 2792.90 93.80 -47.25 81.03 1415499.87 2356000.29 2.50 2.50 0.01° d1Oti Planned Well path Report BAKE R p p E rake KBU11 -17X Version #3A HUGHES MARATHON Page 3 of 5 INTEQ REFERENCE WELLPATH IDENTIFICATION Operator MARATHON Oil Company Slot slot #KBU11 -7X Cook Inlet, Alaska (Kenai Penninsula) I. KBU11 -17X Field Kenai Gas Field (NAD83) Wellbore KBU11 -17X MIBMII Pad 41 -18 �i°® 1 { m . IsLIe1Ji r s i ` ,, 6, a. }ilta .1 1 -,, , ., � ..�_ �... - .......... _.,. �_,��.., r._� ate,...... �_ MD Inclination Azimuth TV North Grid East Grid North DLS Build Rate Turn Rate omments [fti ° ft ft lsry ft sry ft °/100ft 1 ° /100ft °/100ft 3000.00t 20.000 120.246 2983.58 153.92 allEagij 132.97 1415551.22 2355969.03 2.50 2.50 0.00 3100.00t 22.500 120.246 3076.77 190.16 -95.79 164.27 1415582.18 2355950.19 2.50 2.50 0.00 3200.00t 25.000 120.246 3168.30 230.43 - 116.07 199.06 1415616.58 2355929.25 2.50 2.50 0.00_ 3226.91 25.673 120.246 3192.62 241.95 - 121.87 209.01 1415626.41 2355923.26 2.50 = 2.50 0.001 nd of Build 3400.00f 25.673 120.246 3348.62 316.93 - 159.65 273.79 1415690.46 2355884.27 0.00 0.00 0 11M1111.111., 3500.00 25.673 120.246 3438.75 360.26 - 181.47. 1415727.47 2355861.74 0.00 0.00 0 . 00 11111 3600.00 25.673 120.246 3528.88 403.58 - 203.29 348.64 1415764.47 2355839.22 0.00 0.00 0.00 3700.00 25.673 120.246 3619.00 446.90 ® 386.07 1415801.48 2355816.69 g 0.00 0.00 0.00 _ Ar . 9 - 1.50 0.00 3800.00 25.657 120.246 3709.13 490.23 - 246.94 423.49 1415838.48 2355794.17 1.50 Il 3900.00 24.157 120.246 3799.83 532.34 - 268.15 459.87 1415874.45 1.50 -1.50 0.00 4000.00 22.657 120.246 3891.60 572.07 -288.16 494.19 ` 1415908.38 2355751.62 1.50 -1.50 0.00 4100.00 21.157 120.246 3984.37 609.37 - 306.95 526.42 1415940.25 ► 1.50 -1.50 0.00 � ^ - _ 4300.00t 18.157 120.246 4172.70 676.64 - 340.84 584.53 1415997. 2355697.24 1.50 -1. 50 0.00 4400.00 16.657 120.246 4268.12 706.56 - 355.91 610.37 1416023.26 2355681.69 1.50 -1.50 0.00 4500.00t Ililligni 120.246 4364.28 733.97 - 369.71 634.05 1416046.67 2355667.44 1.50 -1.50 0.00 - 4600.00t 13.657 120.246 4461.14 758.85 -382.24 655.54 1416067.92 2355654.50 1.50 -1.50 0.00 - 4800.00 10.657 120.246 4656.63 800.96 - 403.46 691.92 1416103.89 2355632.60 1.50 -1.50 0.00_11111.1111111 4900.00 9.157 120.246 4755.13 818.16 - 412.12 706.79 1416118.59 2355623.66 1.50 -1.50 0.00 5000.00 7.657 120.246 4854.06 832.78 -419.49 719.42 1416131.07 2355616.06 1.50 -1.50 0.00 5100.00 6.157 120.246 4953.33 844.81 -425.55 729.80 1416141.35 2355609.80 1.50 150 - 0.00-�I 1 _ 5300.00 INIIIMBE 120.246 5152.65 861.05 - 433.72 743.83 1416155.21 2355601.36 1.50 -1.50 0.00 5400.00 1.657 120.246® 865.25 - 435.84 747.46 1416158.80 2355599.18 1.50 -1.50 0 -11.1111 5500.00 0.157 120.246 5352.54 866.83 - 436.64 748.83 1416160.15 2355598.36 1.50 -1.50 0.00 5510.46 0.000 120.246 5363.00 866.84 -436.64 748.84 1416160.17 2355598.35 1.50 -1.50 0.00 nd of Drop Planned Well path Report BA1[ R P E KBU11 -17X Version #3A HUGHES MARATHON Page 4 of 5 INTEQ REFERENCE WELLPATH IDENTIFICATION ' Operator MARATHON Oil Company Slot slot #KBU11 -7X I, Area Cook Inlet, Alaska (Kenai Penninsula) KBU11 -17X Field Kenai Gas Field (NAD83) Wellbore KBU11 -17X Pad 41 -18 IIIIIIOIIIHIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIMLMIIIIIIIIIIIIIIIIIIII * � .�� . � ,. ELLPATH DATA (87 stations) = lntet'I �.� : �i.:tA:', : �� :27, � �� .; *� � �.,. ,..� :, ��,. , MD Inclination Azimuth TVD North East Grid East Grid North DLS Build Rate Turn Rate Comments ft L ft ft [ft [sry ft] sry ft] ° /100ft ° /100ft [ ° /100ft 5610.46 0.000 120.246 3' 866.84 .. _ i ° � 0.00 0.00 0.001 iddle Beluga 5700.00 0.000 120.246 5552.54 866.84 -436.64 748.84 1416160.17 2355598.35 0.00 0.00 0.00 IMIIIIIIIIIIIII 5800.00 0.000 120.246 5652.54 866.84 - 436.64 748.84 1416160.17 2355598.35 0.00 0.00' 0.0011.111111.1. 5900.00 0.000 120.246 5752.54 866.84 - 436.64 748.84 1416160.17 2355598.35 0.00 0.00 0.0 0 6100.00 0.000 120.246 5952.54 866.84 - 436.64 748.84 1416160.17 2355598.35 0.00 0.00 0.00 _ 6200.00 0.000 120.246 6052.54 866.84 -436.64 748.84 1416160.17 2355598.35 0.00 0.00 0.00 6300.00f 0.000 120.246 6152.54 866.84 ; - 436.64 748.84 1416160.17 2355598.35 0.00 0.00 0.00 _ 6335.46 0.000 120.246 L 866.84 a t 0.00 0.00 0.00 ower Beluga - 436.64 748.84 1416160.17 2355598.35 0.00 0.00 0.00 6500.00f 0.000 120.246 � 6352.54 866.85 1.11111111111,1 6600.00f 0.000 120.246 6452.54 866.85 -436.64 748.84 1416160.17 2355598.35 0.00 0.00 0.00 6700.00 0.000 120.246 6552.54 866.85 - 436.64 748.84 1416160.17 2355598.35 0.00 0.00 0.00 11111.11.111111111 1 68 0.000 120.246 6652.54 866.85 - 436.64 748.84 1416160.17 2355598.35 0.00 0.00 0.00 IMIIIIMIIII Il j 7000.00 ; 0.000 120.246 6852.54 866.85 - 436.65 748.84 1416160.17 2355598.35 0.00 0.00 0.00 7100.00 1 0.000 120.246 6952.54 866.85 - 436.65 748.84 1416160.17 2355598.35 0.00 0.00 0.01 -. 7200.00 0.000 120.246 7052.54 866.85 - 436.65 748.84 1416160.17. 2355598.35 0.00 0.00 0.01 7300.00 0.000 120.246 7152.54 866.85 - 436.65 748.84 1416160.17 2355598.35 0.00 0.00 0.00 -, 7435.46 0.000 120.246 �� 866.85 7 , 7 7; 0.00 0.00 0.00 Tyonek 1 �� 7500.00 0.000 120.246 7352.54 866.85 -436.65 748.84 1416160.17 2355598.35 0.00 0.00 0.00 7600.00 0.000 120.246 7452.54 866.85 - 436.65 748.84 1416160.17 2355598.35 0.00 0.00 0.00 7700.00t 0.000 120.246 7552.54 866.85 -436.65 748.84 1416160.17 2355598.35 0.00 0.00 0.00 1r +3 L.......___- 7900.00f 0.000 120.246 7752.54 866.85 -436.65 748.84 1416160.17 2355598.35 0.00 0.00 0.00 7935.46 0.000' 120.246 VA; ,. 866.85 _ , .-,Z aZ i :. 0.00 0.00 0.00 TD M Planned Well path Report BAKE R p p KBU11-17X Version #3A HUGHES MARATHON Page 5 of 5 INTEQ REFERENCE \%ELLPATH 1DENTIFIC.VI ION Operator MARATHON Oil Company Slot slot #KBU11-7X MEM Cook Inlet, Alaska (Kenai Penninsula) KBUl1 - 17X Field Kenai Gas Field (NAD83) Wellbore KBU11 -17X Pad 41 -18 IIIIIIIIIII - 00 & CASING SEC; , of W Bbora t BU11 =17X Ref Wellpath: KBU11 - , 17X Version #3A _ .,, , String/Diameter Start MD End MD Interval Start TVD End TVD Start N/S ji U End NI/S End E/W [ft] [ft] [ft] [ft] [ft] [ft] e ft] [ft] 16in Open Hole 0.00 1600.27 1600.27 0.00 1600.00 0.00 0.00 -7.91 MOM 13.375in Casing Surface 0.00 1600.27 1600.27 0.00 1600.00 0.00 0.00 -7.91 12.25in Open Hole 1600.27', 5585.46 3985.19 1600.00 5438.00 -7.91 IIIIIIIIMIn - 436.64 748.84 9.625in Casing Intermediate 0.00 5585.46 5585.46 0.00 5438.00 0.00 0.00 - 436.64 748.84 8.5in Open Hole 5585.46 7935.46 2350.00 54 7788.00 - 436. 748.84 . - 436.65 748.84 3.5in Casing Production 0.00 7935.46 7935.46 0'00 7788.00 0.00 0.00 - 436.65 748.84 TARGETS _, - - .�� Name MD TVD North East Grid East Grid North Latitude Longitude Shape _ [ft] [ft] [ft] [ft] [sry ft] [sry ft] 1) KBUll -17X Middle Beluga(NAD83) 13- 561 « _ '''''':7t`;.:'' € ' f .y; . 1 lr circle Nov -08 2) KBU11 -17X Lower Beluga(NAD83) 13- 6335.46�.� >, Nov -08 7435.46 288.00 x .,, _,! . . .1 , ,, I . € ° t - 3) KBU11 -17X Tyonek(NAD83) 13- Nov -08 7935.46 ' 778:' l : ':a C$ k$ J .. \ F r 1 °26 1 t 1 4) KBU11 -17X TD(NAD83) 13- Nov -08 ' ' . i M Ref *ore: KBU 11 -17X > t 4 ; Version #3A S tart MD End MD Positional Uncertainty Model ' • Wellbore ft ft IMENIUMIMMIIM 0.00 1600.27 aviTrak Ma_corrl _ 1600.27 5585.4.1 .v Ma:corrl 5585.46 7935.4.1 aviTrak Ma_corrl M MARATHON Oil Company BAKER Location Cook Inlet, Alaska (Kenai Penninsula) HUGHES Field Kenai Gas Field (NAD83) Well: KBU11 -17X MARATHON Facility Pad 41 -18 Wellbore: KBU11 -17X INTEQ Plot reference wellpath is KBU11 -17X Version #3A True vertical depths are referenced to Planning (RKB) Grid System: NAD83 / TM Alaska State Plane, Zone 4 (5004), US feet Measured depths are referenced to Planning (RKB) North Reference: True north Planning (RKB) to Mean Sea Level: 88 feet Scale: True distance Mean Sea Level to Mud line (Facility: Pad 41 -18): 0 feet Depths are in feet Coordinates are in feet referenced to Slot Created by: jonethoh on 13- Jan -09 Scale 1 inch = 50 ft -200 -175 -150 -125 -100 -75 -50 -25 0 25 50 75 100 125 150 175 200 225 250 275 1 t I I co I I 1 I 1 R .I I I I I I I I I I 75 ■ to , M�� — 75 1 G 3200 no -1- - 50 ■ — 0 70400 2000 3000 25 ■ ■ 25 °° 1800 SIOt # v 24,> 2800 KBU41 # 18X 1600 KBU11-7X RKB 88' c° 200 1000 600 1000 20 0 0 � ` 18 00 =2600 slot# 12 � ° ° ° � 2s ■ KBU 7 X 2° ti� ° o 7 000 slot 8 rl , , ° ° — -25 1600 99 -50 ■ — ° O ■ -50 OZ ti 0) 3 C Z 75 — 1 0 000 ° — -75 CO o X 11 • -too — �v 1 1 -125 .• 800 °° -125 98 '9' 1400 -150 — /e0 — -150 4 i 0 -175 — 9600 — -175 -200 — -200 1 I 1 1 1 I 1 1 I 1 1 1 I 1 1 1 1 I i -200 -175 -150 -125 -100 -75 -50 -25 1 40 25 50 75 100 125 150 175 200 225 250 275 Scale 1 inch = 50 ft Easti ng (ft) r M MA ATHON Oil Com n B! ER IRUGHES Location: Cook Inlet, Alaska (Kenai Penninsula) Slot: slot #KBU11 -7X INTEQ MARATHON Field: Kenai Gas Field (NAD83) Well: KBU11 -17X Facility: Pad 41 -18 Wellbore: KBU11 -17X Plot reference wellpath is KBU11 -17X Version #3A True vertical depths are referenced to Planning (RKB) Grid System: NAD83 / TM Alaska State Plane, Zone 4 (5004), US feet Measured depths are referenced to Planning (RKB) North Reference: True north Planning (RKB) to Mean Sea Level: 88 feet Scale: True distance Mean Sea Level to Mud line (Facility: Pad 41 -18): 0 feet Depths are in feet Coordinates are in feet referenced to Slot Created by: jonethoh on 13- Jan -09 Traveling Cylinder: Map North All depths are Measured Depths on Reference Wellpath � 0� 0 330' -_ 30' _ -°�'� „ 8611. W,,,. g - '°�.v' ��. x l 7 f h r r _ \)c, 60 X. 300' E f " \ `, .1 .m.,, 'a �i . F Fe y �- .�,�� , 1 , s i , `` i . 1 \ ; \. i / / / i ( s / , ,\ ,, t 1 1 1 `, x. 1 1 4 i I 1 J 741) l tri ;VIM \ - if t I 1 N. °x, J i , - - - - ' ' ' ' ' ' " _ , . • . . / 411" / ' ' z � /X` \\„. */.40...a , ,____,_, r ,w' - , ,.. » „_,_� 150' • 180' Scale 1 inch = 30 ft • M Clearance Report s-- KBU11 -17X Version #3A BAKER Closest Approach HUGHES MARATHON Page 1 of 43 INTEQ REFERENCE WELLPATH IDENTIFICATION Operator MARATHON Oil Company Slot slot #KBU11 -7X Area Cook Inlet, Alaska (Kenai Penninsula) MINIM KBU11 -17X Field Kenai Gas Field (NAD83) Wellbore KBU11 -17X glIMIEMO Pad 41 -18 IIIIIINIIIIIIIIIMIIIMIIIIIILMIIIIIIIIIIMIIIIIIIIIIIMIIIIIIIIII REPORT SETUP INFORMATION Projection System NA D83 / TM Ala s ka State Plane, Zone 4 (5004), US feet Software System WellArchitect® 2.0 North Reference Jonethoh Milill 0.999958 Report Generated 13- Jan -09 at 11:21:51 Convergence at slot 1.08° West Database /Source file WA_Anchorage/KBU11- 17X.xml WELLPATH LOCATION Local coordinates Grid coordinates Geographic coordinates North[ft] Easting[USft] Northing[USft] Latitude Longitude Slot Location - 441.74 - 419.04 1415419.75 2356049.06 60 °26'35.905 "N 151 0 14'45.227 "W Facility Reference Pt 1' 1415847.04 2356482.79 60 °26'40.256 "N 151 °14'36.875 "W Field Reference Pt IIIIIIIIIIIIIIIIMIIIIII 1410937.15 2361824.52 60 0 2731.931 "N 151 °16'16.783 "W WELLPATH DATUM Calculation method IMEMIMEEMMZIIIIIIIMIIIIIIIIIIIIIIIIIIIIIIIIIII Planning (RKB) to Facility Vertical Datum 88.00ft Horizontal Reference Pt Slot Planning (RKB) to Mean Sea Level 88.00ft Vertical Reference Pt Planning (RKB) Facility Vertical Datum to Mud Line (Facility) 0.00ft MD Reference Pt Planning (RKB) IMMIIIIIIIIIIIIMIIIMIIMIIIIMIIIIII ; Field Vertical Reference _- - - -- POSITIONAL UNCERTAINTY CALCULATION SETTINGS Ellipse Confidence Limit 3.00 Std Dev Ellipse Start Depth 0.00ft SI . • P. i i•n U .1 , included Declination 18.78° East of TN Dip Angle BM Magnetic Field Strength 55410 nT M Clearance Report KBUll -17X Version #3A BAKER MARATHON Closest Approach HUGHES 4 --. Page 2 of 3 INTEQ REFERENCE WELLPATH IDENTIFICATION Operator MARATHON Oil Company Slot slot #KBU11 -7X ,MIIIIII Cook Inlet, Alaska (Kenai Penninsula) EEIIINIIIIII KBU11 -17X Field Kenai Gas Field (NAD83) Wellbore KBU11 -17X Pad 41 -18 -.ate I, ,� ANTI COLLISION RULE Rule Name E -type Closest Approach w /Hole &Csg Limit:0 StdDev:3.00 w /Surface Uncert Rule Based On Ellipsoid Separation Plane of Rule Closest Approach Threshold Value O.00ft Subtract Casing & Hole Size Apply Cone of Safety no HOLE & CASING SECTIONS Ref Wellbore: KBU1I -17X Ref Wellpath: KBU11 -17X Version #3A String/Diameter Start MD End MD Interval Start TVD End TVD Start N/S End N/S End E/W [ft] [ft] [ft] [ft] [ft] [ft] [ft] [ft] I 16in Open Hole 0.00' 1600.27 1600.27 0.00 1600.00 0.00 0.00 -7.91 13.57 13.375m Casin g Surface 0.00'. 1600.27 1600.27 0.00 1600.00 0.00 0.00 -7.91 13.57 12.25in Open Hole 1600.27 5585.46 3985.19 1600.00 5438.00 -7.91 13.57 - 436.64 748.84 9.625in Casing Intermediate 0.00 5585.46 5585.46 0.00 5438.00 0.00 0.00 - 436.64 748.84 8.5in Open Hole 5585.46 7935.46 2350.00 5438.00 7788.00 - 4 748.84 - 436.65 748.84 ,... 3.5in Casing Production 0.00 7935.46 7935.46 0.00 7788.00 0.00 0.00 - 436.65 748.84 : SURVEY PROGRAM Ref Wellbore: KBUII -17X. Ref Wellpath: KBU1I -17X Version #3A Start MD End MD Positional Uncertainty Model Log Name /Comment Wellbore ft ft 0.00 1600.27 aviTrak Matcorrl 11111.11111.1111111111111111111111111111.111 1 • 1600.27 5585.4.' aviTrak Ma_corrl 5585.46 7935.4. aviTrak Ma:corrl MINIMINIMINIMIIIIMIIIMAINENIMIMMMII M Clearance Report BA KBU11 -17X Version #3A BAKER Closest Approach U4INI ES MARATHON Page 3 of 43 INTEQ REFERENCE WELLPATH IDENTIFICATION - Operator MARATHON Oil Company Slot slot #KBU11 -7X Area Cook Inlet, Alaska (Kenai Penninsula) Well KBU11 -17X [Field Kenai Gas Field (NAD83) Wellbore KBU11 -17X Facility Pad 41 -18 MIIIIIIIIIIII CALCULATION RANGE & CUTOFF From: O.00ft MD To: 7935.46ft MD C -C Cutoff: (none) OFFSET WELL CLEARANCE SUMM RY _10 Offset Well paths selected) Offset Offset Offset Offset Offset Ref ` Min C -C 1 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 -18 slot #KBU14 -8 KBU14 -8 KBU14 -8 NaviTrak MWD <173 - 8072'> 0.00 59.65 1900.00 174.50 46.13 1900.00 PASS Pad41 -18 Slot #KBU41 -18X KBU41 -18X KBU41 -18X NaviTrakMWD <139- 8740'> 0.00 119.65 2300.00 139.00 106.14 2300.00 PASS Pad 41 -18 slot #KBU13 -8 KBU13 -8 KBU13 -8 MSS <0 -8770> 1687.81 illiMat 1687.81 1698.30 144.26 1698.30 PASS Pad 41 -18 slot #KU11 -17 KU11 -17 KU11 -17 GMS <0 -5400> ® 186.11 11111111E36 1589.21 160.39 1589.21 PASS 3 Pad 41 -18 slot #KBU33 -7 KBU33 -7 KBU33 -7 MSS <0 -7910> 1055.63 374.80 1055.63 1059.41 358.03 1059.41 PASS Pad 41 -18 slot #KU41 -18 KU41 -18 KU41 -18 MSS <0- 14721> 0.00 431.94 2200.00 2361.35 405.78 7900.00 PASS Pad 41 -18 slot #KU24 -7 KU24 -7 3=1M GMS <0 -58205 0.00 435.39 0.00 100.00 422.16 100.00 PASS Pad 41 -18 slot #KU24 -7 KU24 -7 KU24 -7RD MWD <3777 -4800> 0.00 435.39 0.00 100.00 422.16 100.00 PASS 0 • Nll 13V1fAC go a1 I i f I DRI -- - - -G FLUIDS - - ! 'II I III I i I �I i I Iii ( H - N KBU 11 -17X - - I Prepared by: Jim Dwyer '!�,�� III P Y Engineer M -I SWACO Senior Project g Reviewed b David Heriard - Y I M -I SWACO Presented to: Will Tank I Engineer Marathon Drilling En � Dri g g I� Final Draft MOC KBU1117X liI I .„ r,,,,, I I I I I . I i • MI AC ■ ∎ 1 I - I 1 Marathon Oil Company 190168 Box 1 PO 9 Anchorage, Alaska 99519 ATTN: Will Tank Will: I IIIi1 Enclosed is the recommended drilling fluid program for the KBU 11 -17X Well to be_drt11e .al *ear. i!',.!l'11111 The following is a brief synopsis of the program. Overview: KBU 11 - 17X is a development well targeting the Beluga and Tyonek formation at the Kenai G 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 sy een eOled place. Surface Interval: The surface interval will be drilled with the standard Gel /Gelex spud mud. No p roblems were noted in this interval while drilling the offset wells. Intermediate Interval: This interval will be drilled with a Flo-Pro NT fluid. After drilling out the surface c eme 1� ,t lie I w o l ro P program g l,� 1 1 will be displaced to a 3% KCL Flo -Pro fluid. While the ram calls for SafeCar 1,1 i III material, Mix II and Sack Black should be added to the mud system prior to drilling t he Sterling A8_: sand ( +/- 3777' MD). This is a highly porous depleted zone that has contributed to losses of whole mud in the past. Production Interval: I , This interval will be drilled with the same fluid that was used to drill the intermediate int T 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 I ; maintained @ 4 -6 cc's API for this interval. Estimated pressures in the lower Beluga l»d ne Tyok could require a mud weight of up to 10.6 ppg @ ± 6188' TVD. II1 l 1 I Completion: 1100011001:"' i 1 I II P II 0 m completion phase of m The cement will be displaced r _ laced with 3 /o KCl brine for the co he I a Con o p p P ' �' q - 303A and Sodium Meta Bisulfate will be added to the drilling fluid that will be 1 1 e 1 b,e 1 1 1/2" completion string and the 9 -5/8" casing on the final circulation prior to cementi ' , 11 1 � I', I I I I '�I I , �II I �' I; �I I I ; I , ' 'I I!I ' 11j1;; Jim Dwyer Sr. Project Engineer 111' 11 j, Reference Wells: KBU 22-6; KBU 11 -8Y• KBU 41-6; KBU 11-7; KTU 43 -6X RD2 1 NOTE: This program is provided as a guide only. Well conditions will always dictate fluid properties required, Final Draft MOC KBU 11 -17 X • • SWAG aY> 11 : 1 ::1 1 EXECUTIVE SUMMARY I _ `� � , Ou r goal is zero spills and zero in cide� l nts and 100% _ compliance while providing fluids servi to Marathon 4 (�";� ,,,, Oil Company. "` noNtAs ces I Ii�� l4llll III VIII I I 11,,I it IIII II �Il MI SV1MG The new centrifuge installed on rig will assist in removal of LGS for minimizing mud weight and dumping and dilution of fluids. Disposal costs a t G '$1 & facility will be reduced with the use of new ce l uge installation. I I I li I I I _ I I II I Mil SVVAC We expect to drill this well for a product cost cif less than $44.93 per foot. This estimate is based ort y.3' ppg mud weight in production hole. _ I VII 1 . I 1 I I 1 1 1 II 1 1 I I II I I I I I I im the use of less than 5867 �r r� �� '��, 11 ' '11 d�il We estimate t b /PAN an t f orm atin. o=s--,, IFE this well, not withstanding any losses 1 I II 11 II, I . 1 1 1 � 111,,I !�,� !,:,!!!!:!!!!,'!!,!!!,!!!!,!!!:':!!!':,,1: I� Final Draft MOC K X BU 11 17 ! • I _ 4 � 9B Y'I M1 1 t MI SWAG • Section 1 _. Objectives / Benchmarks I Goals Goal I 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 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 I 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 Final Draft MOC KBU 11 -17 X • 0 MI SWACO Section 2 -- Well Design Well: KBU 11 -17X Casing Hole Casing Depth TVD Mud Mud Weight Cost Sum Size Size Program (MD -SS) (TVD -SS) System (ppg) Days (in) in) ft ft Conductor 100' 1600 1600 GEL SPUD 8.8 — 9.2 $15,929 4 13 3/8 "" 16" 9 5/8" 12.25" i i 5585 5438 FLOPRO 8.9 — 9.2 $256,394 7 3.5" 8.5" 7935 7788 FLOPRO 9.4 -10.3 $99,100 6 3% KCL Brine 8.6 $11,844 3 Comp Cost does include engineering charges FORMATION TOPS ESTIMATED PORE PRESSURES Pore Pressure Formation Estimated Tops (TVD) (ppg) Sterling A8 3688' .8 — 6.5 Beluga 4863' 1.5 — 7.3 Middle Beluga 5463' 5.8 — 10.6 Lower Beluga 6188' 5.8 — 10.6 Tyonek 7288' 3.8 — 10.6 TD 7788' 3.8 — 10.6 ■ Final Draft MOC KBU 11 -17 X 1 k � ,I S 0 IVO SVVAC • . , .... , .___,__=_-=--_-- —.7_-,- ---,,, _-.,,. r111 10 14 11 11 iii:0707M -- .4 :- Agt - E= . 1;fititY - PAR , °111°1111'1' '-'-'. te411 1 ,A, 0 , 11 .. :: • jO' , ' ° ..14 :10: ' ' -- - — --- — - qvAArtrowA'. 16,0...1 4 , ,,i , ,,,„„,,, k , , ,,4,,,,4,,,,„, , „„..4. , ,,,,...,;,,..., Mi SWACaro,.- ©1995-2006 M-IL.L.0 . 10.3 ppg@500 GPM Neer, ofM1I-ILLG MD:7935 ft Operator:Marathon TVD:7788 ft WellName: KBU 11-17X Bit Sne:8 5 in Location:KenaiPeninsula : ."-' VIRTUAL HYDRAULICS* DirPro* Date:1/16/2009 Country:Alaska ' Directional Profile ,, , Marathon KBU 11-17X I i : 1 1 J_ 1 ! .., o 1 1 : 1 I o o .t. • • ., I ••■••• .■ _. 3 Z .' ''' • .0 • • • 4+ a •••■ • 0 • 0 10-0-c}o ck3.0.000 , sz 0 k i .... 4 • .... co ' - • III s eire _ IP ge I r 1 il a 5 T > a a) .. . ■ , i - I- I ■ 1 h 7 .- ''' i • i ' -,..:....- ...- 8 0 0.1 02 ' � 6.4 6.6 o 6 0:7 0. 8 0 9 Horizontal Displacement (1000 ft) , .-- 1 Final Draft MOC KBU 11-17 X 1 • • .:.,..,...,,,..:.„.,:,,I ---__-_,,:„, -:- : : ,, . .. , : , ,.,.: ! : ,, :: . !! ! , :.1 , .' ! ' , .. , , ,. .. i Section 2 —Well -ell Design I 1 EMS Cuttings and Mud Target Goals bb s . ), l��4 S M ud Cutt s G C I ! Performance 16" OH 12.25" OH 8.5" OH Benchmark Section Section Section Section ' : ' Length (ft) 1600 3985 2350 Cuttin s g Dischar g es ** 398 581 165 Mud *** Discharges 1992 2671 1204 Mud + „ IV � Cuttings 2390 3252 1369 Ii Discharges EMS Mud Cuttings and Mud Target Goals bbls.fft `` - � � C I I I - I �Ii ��iii ' I w ��4 - �I rNn, e o a P rf nce 16" OH 12.25" OH 8.5" OH 1.� Benchmark Section Section Section Section Length (ft) 1600 3985 2350 Cuttings +' 1 Discharges 0148 .145 .07 Mud r 1.244 ..67 .51 Discharges +1, � I1 �� , )r Mud + Cuttings 1.492 .815 .58 Discharges **Gauge hole cuttings ' Includes mud on cuttings � I I II - lia I i I i I I Final Draft MOC KBU 11 -17 X • • 1 TWA - __ l�� : Section 3 - Challenges Potential Problems ; Discussion / Recommendations COMMUNICATION — The Field Mud Engineer will communicate daily with the ,,,In- To I - 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, possitl,le changes to the mud program, and proposals to use products not included in the mud progra ii WHOLE MUD LOSSES TO THE FORMATION — Refer to fluid formulas for mainte,',�'rring proper , bridging material concentration in the mud system while drilling the interme iate and production intervals. - FLUID LOSS CONTROL — In the production interval the API fluid will be maiiitainerf in the 5 , ,;p cc's at all times. In addition to sufficient fluid loss agent additions, this may requirei'„� dequat i "',;', dilution of the mud system in order to keep reactive drill solids to a minimum , i LSRV — When drilling with a FloPro fluid, the low shear rate rheology should a maintained „,,, around 25 — 35,000 cps. In addition to adequate additions of FloVis Plus, this will also require keeping reactive drill solids to a minimum in order to reduce or eliminate faiseaand 'Llnwpntett , high LSRV. li,i,,,, _ DRILL SOLIDS — MBT — The MBT should be kept at less than 5 ppb in the p��hoduction interval through aggressive use of solids equipment and dilution as needed. „ MIXING CONDITIONS — Whenever possible all treatments to the mud system should b made as pre -mix additions. Polymers and KCI should first be mixed in fresh wafer in that order and then blended into the active system over one or two circulations as needed � CORROSION — Con or 404 additions should be made daily when drilling „with Fi flui � "� - 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 1 11 0 MYACIDE 25G ADDITIONS — Myacide 25G additions should be made daily wh d in the production interval, in the range of 5 gallons per day. 0 CENTRIFUGE — The centrifuge should be used whenever drill solids be'+ome too high = - end reduction of drill solids in the mud can be more economically done with centrifuging and dilution 0, then just with dumping and diluting. The weight of the drilling fluid alone should 'hdt be the ��l"i�, determining condition for when to use the centrifuge. Monitor discharge witii�' +Weighted mud ==arrd only run briefly as needed. = ., � WEIGHTING UP — All increases in mud weight should be accomplished with bari l l � I l a ddition s i n the production interval, insure chloride concentration is maintained at 30,000 to ,minimize t0e need for barite additions. �,y�� , i I „ i M 11-17 X Draft C KBU O Final i 0 MI SWAC. Section 3 _ Challenges Potential Problems Hole Cleaning Recommendations ❑ Low -shear rate viscosity "LSRV" values (6 and 3 rpm) has a greater impact oh hole Gleaning than yield point, in addition to providing barite suspension under dynamic as well as s tatic 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 drilliri6 Orok`leins4 111!;' ❑ 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 1 - 5 - 20 ❑ 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 ❑ The oun clay formations can absorb high volumes of water and can be extremes stick end ' Y 9 Y 9 Y Y - problematic regardless of the degree of inhibition. ❑ The drilling rate should be controlled to keep the concentration of cuttings in the annulu below 5 %. ❑ Short trips should be made as necessary to minimize buildup of cuttings in areas of hole washout. ❑ During trips, the BHA can accumulate cuttings that will potentially ball it. Reco' I ,I, I g I �' l l '1d r' I�'TC011 ,gng for a short period to circulate up any formation that may have adhered to the l''„ i�Or , urin ��yi the trip. I'; u II Final Draft MOC KBU 11 -17 X • • MISWAC -.- SaSection 4 ., Offset 1+11 Data l - - l , _ I - Hole Size Depth PPG PV YP FL Comments i IIII Well e P KBU 22 -6 16 182 8.7 14 35 14.6 Spud in, drill ahead `" - 1550 9.2 14 22 6.4 DrIg ahead 1680 9.2 14 20 7.8 DrIg to casing point, run surface casing 12.25 3453 9.3 8 11 9.2 DrIg out, displace to FloPro, Run LOT, drlg ahead 4649 9.4 12 14 8.8 Drlg ahead I Il i t 5338 9.2 14 18 5.8 Lost partial returns @ 4929' spot 50 bbl LCM pill, regain returns � I 1 i I l� O ,, 6032 9.3 14 16 5.4 Lost partial returns @ 5840', add LCM to mud ::...1:1:1:11,: i s 6535 9.6 17 19 5.2 Reduce ppg, pump LCM pills, run casing, cement same 1h gil 8.5 7095 9.85 17 21 5.8 DrIg out cmt, LOT, drlg ahead 8136 9.85 17 23 5 DrIg ahead, short trip OK, drlg ahead - �l 1, 8855 10.3 19 21 5.2 DrIg to csg point, short trip, some tight spots, POH for logs = � i l y, i i i,i „ly 1', ' ,'l, 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 p I ' m no losses disp to bane ' 4 I1 8855 10.65 19 1 19 5.8 Run excape string, cemen t same, KBU 11 -8Y 16 498 8.65 11 16 17 Spud in, drill ahead '�' ,?,, 1550 9 9 16 8.8 DrIg to csg point, short trip OK, POH 1550 9.1 9 19 10.6 Run & cement surface casing l; l! '1, 12.25 3774 9.1 9 17 7 DrIg out, disp to FloPro, drlg ahead ; 5033 9.3 13 15 7.8 Drl to 3884', short trip OK, drl ahead 9 P � 9 5820 9.45 17 23 5.8 DrIg to csg point, add 3% Lubetex (torque), POH 5820 9.55 19 22 5.8 Log well, wiper trip, 5820 9.7 20 26 5.4 Run csg, cement same, lost partial returns n Lubetex for � �, IiI rl out, LOT, drl ahead, add EMI 920 and for 8.5 5840 9.3 14 18 6.2 D g ou , 0 g q�t,,� „ 7574 9.75 17 27 5 Drlg ahead + :1 '�'�' 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 liil ; 1 brine I;I, 17 26 5.2 Run and cement excape string, disp to b i e . i1 r 8220 10.8 P 9' p i i „ I li - Final Draft MOC KBU 11 -17 X • • NH 13‘011AC w ! Depth PPG PV YP FL Comments Well Hole Size e 'I I P KBU 41 -6 16 1616 9.05 18 24 9.6 Spud in, drill ahead I�! !�! I 1862 9.3 16 17 7.8 Drlg to casing point, run surface casing I' I;,, ::� 1862 9.3 12 14 7.2 Cement surface casing 12.25 3431 9.3 12 16 8 Drlg out, displace to FloPro, Run LOT, drlg ahead 5044 9.2 13 17 8.4 Drlg to 4206', wiper trip OK, drlg ahead, pump sweeps every 500 ft ' ! 6289 9.2 13 19 7.4 Drlg to 5278' lost returns, stopped with LCM, drlg ahead I P 7105 9.3 14 23 7.6 Drlg to 6897', wiper trip OK, drlg ahead 7220 9.3 11 23 8.6 DrIg to casing point, wiper trip Ok, POH to run casing u 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 I I I 7735 9.2 10 16 5.3 Trip for core #1 :I I I 7776 9.3 12 13 5.1 Core #1 � !:Ij;I: 7835 9.5 14 14 5.2 Core #2 8445 9.7 14 16 5 Drlg to core point 8535 9.95 14 19 5 Core #3 1I1, 8807 10.1 16 20 4.6 Drlg ahead, increase Lubetex to 4% ° I ,, l il l l ', II 's 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 I ;II;III ; 9 733 10.8 14 21 5.6 Run and cement excape string, disp to brine I , :I I I !il l l, : KBU 11 -7 16 187 8.7 7 28 16 Clean out conductor, spud in !' y 1477 9 8 23 9.2 Drlg ahead „Iy!IIII'I,:',:::i:,1,,1:1;:,;;:::;1IIIIII , 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 - I!I I ! 5249 9.3 15 20 6.7 Core #2 5449 9.4 15 12 7 Open core runs to 12 -1/4 ", drlg ahead I' I I 5585 9.6 17 23 7.3 Logging II 5585 9.5 16 24 7 Fish for RFT tool parts 5585 9.5 17 21 7.4 Recover fish, log with RFT tools II I ' 5585 9.5 17 22 8.2 Run & cmt 9 -5/8" casing I I I I I I I I !I !I ! II II III „ 8.5 5869 9.5 22 26 6.8 Drlg out, LOT = 15.2 PPG, drlg ahead 6940 9.9 21 23 5.8 Drlg ahead, weight up for gas, wiper trip, backreaming needed lil 7770 10.3 26 27 6 RIH, drlg ahead, weight up for stability, add asphasol for coaMA I , it :;I III�I 7900 10.5 27 29 5.8 TD well, wiper trip, extensive backreaming, POH for logs I Ili :I I; 7900 10.5 23 23 5.8 Log well on drlg pipe ! :: IIiIII l 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 Il : II :I : 8 I +Iw I I - I I I I , l I I I 11-17 X MOC KBU 7 Final Draf t I ' t I � II I � ,I I I, I L I I, . • MI SWAG .• Section 5 — Surface Interval (0' — 1600') Depth Interval 1600' MD (1600' ND) (16" OH, 13 3/8" Casing) Drilling Fluid System Spud Mud Key Products MI GEL, Gelex, Caustic Solids Control Mongoose shakers, desilter, centrifuge Potential Problems Hole Cleaning, Hole Stability INTERVAL MUD PROPERTIES Depth Plastic Yield API Funnel T D Mod Wt Viscosity Point lttid Loss Viscosity I...t S (ft) (dog) (cp) lhI IU )tt`') (n11 3O x in) > cr'r t ) ltli 1600 8.8 — 9.1 15 -24 >30 <18 60 - 100 8.0 — 9.0 < 6 ➢ Treat drill water with Soda Ash to reduce hardness. ➢ Build spud mud with 20 — 25 PPB M -I Gel to +/- 100 sec.qt funnel viscosity. ➢ Lower funnel viscosity to +/- 60 after gravel zone has been drilled. ➢ Add Gelex as needed to maintain sufficient viscosity for hole cleaning. ➢ Increase funnel viscosity if fill on connections begins to occur. ➢ Reduce fluid loss with additions of Polypac Supreme UL prior to running surface casing. ➢ Add 2 — 5 PPB of MIX II to mud system if seepage losses becomes a problem. ➢ Condition mud prior to cementing casing to reduce yield point and gel strengths. Final Draft MOC KBU 11 -17 X • • MI SWACO Hydraulics / Hole Cleaning: Virtual Hydraulics Graphs The following graphs look at the ECD + cuttings at 1600' casing shoe and moving cuttings concentration (MCC) in the annulus while drilling the section. VH SNAPSHOT Mi e" \ ' ®1995- 2006M- IL.L.C. Surface 800 GPM MD:1600 ft OperatorMarathon �eYV BM �a u a � k t } . t.G Datete :1H82009 Country Ala Yska TVD:1600 ft WepName: KBU 11.17X VIR1UALHYDRAULICS" SnapSliote B6 1 r Looatbn:K ninsuk Ska Depth Geometry Angle Density Va Hole Clean Pressure Distrbutlon (ft) MD/TVD Csg ODOD ( (b/gsq (fthnkt) index ( %) 00) as so 8s 92 e6 a eo w e F P Bk =23 Ann =09 DS= 76.1 Uli 200 1313 x09913 0 1 300 1111■11 . 400 1111.11 Drilling Fluid Water -Based Mutl 1111.11 Mud Weight 9 b/gal 1111. 11111111 i Test Temp 90 °F Sy tem Data 000 11111111 Fbw R t 000 gaVmin 1111 Pe ne lrat an Rate 150 fllhr Rotary Speed 80 rpm 870 Weight on B0 15 100015 Bk Nozz ins 1.5 m 11111111 Pressure Losses - -- 11111111 Modified Power Law Drillstring 784 psi 7000 MWD 450 psi lzoo 11111111 BB Motor 350 psi I l i 236 psi 11111111 Bit OnlOff 100 psi 1300 i Annulus 10 psi 00 11111111 UuTube Effect 33 Psi i __ Totalsystem 2024 psi 1so0 = I 11.7 ESD ECD •Cut i e ..1t_ Cog Shoe 9.03 9.09 9.49 1000 16130 . is coo _.....„.,., TD 923 9.14 9.55 1soo 1111.. 1111_ wms. v. =701713.1 r..e as Em 1700 - - F C° ® ---j111 1 0 wmwlx 101.1111-11.8 86a Final Draft MOC KBU 11 -17 X • • MI SWACO VH HOLE CLEANING Mi SWAG. ©1995-2006 M -ILL( Surface 800 GPM MD:1600 TVD:1600 ft Ope rator.Marathon u,M,rM - iuc ft WellName: KBU 11 -17X * Bi in Location:KenaiPeninsua VIRTUAL HYDRAULICS* EON* Date:1A62009 CounVyA Waka Hole Cleaning Marathon KBU 11 -17X 1.00 - ROP 100ft /hr I _ - -- — ROP 150 ft /hr _ Poor Hole Cleaning ROP 200 ft/hr _ _.._�.___ _. _..n:;; -- -_..._�.� .. -• -- ---- ;- -- --- -- - -- — ir 0.75 k m 13 1 C I Fair Hole Cleaning i C —_ - - -- .--.-- . .....- ._.. -. ...__...____ ._ __._...__. i C fd 050 d Good Hole Cleaning - - -.... � — " - . o - -- _ ._ -. - -. _ - I { -..y.- �'-- -- 0.25 ._.. — Very Good Hole Cleaning - - -- - -- - } 1 { 600 700 800 900 Flow Rate (gal /min) Final Draft MOC KBU 11 -17 X Mi EIWAC M s • Section 6 — Intermediate Interval (1600 5585') Depth Interval 5585' MD (5438' TVD) (12.25" OH, 9 5/8" Casing) Drilling Fluid System FLOPRO Flo -Vis / PolyPac UL / KCI / SafeCarb 40/250/500 / Sack Black / Key Products LoTorq / Caustic Soda / Conqor 404 / Sodium Meta Bisulfate 1 Kiagard Solids Control Mongoose shakers, desilter, centrifuge Potential Problems Hole Cleaning, Hole Stability, Seepage losses INTERVAL MUD PROPERTIES Depth 4 "Olastic Yield API 1VO Mod Wt . Viscosity Point Fluid Loss LSRV LGS (ft) (pp9) (op) (Ib /1001t (mi /30rin) 1 mite Cp pH °l 5585 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 Flo -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. ➢ Periodic additions of LoTorq will be needed to maintain 3% minimal concentration. ➢ Condition mud prior to running 9 5/8" casing. 4 ( Final Draft MOC KBU 11 -17 X f • • ' x�Zt: _ go' 1 Sr Mid , NB SWAG ,- - m; 7x '1 . I j 1 Hydraulics / Hole Cleaning: �. Virtual Hydraulics Graphs The following graphs look at the ECD + cuttings at 5585' and moving cuttings concentration (MCC) in the annulus while drilling the section. VH SNAPSHOT ®1995 -2 006 M- IL.L.0 . 9.2 peg @650 GPM MD:5585 ft OperalordAarathon Mi SWA n+enkaun0c TVD:5438 ft WeIlName: KBU 11.17X VIRTUAL HYDRAULICS* SnapShot* Bit Sae:1225 In Looation:Kenai Peninsula Dale:1A6l2009 CountryAlaska Depth Geometry Angle Density Va Hole Clean Pressure Distribution (ft) MDIIVD Csg ODAD (°) (blgaq (ft/min) Index ( %) (It) On) 0 45 90 9.2 9.4 98 0 140 280 lei 0 F P Bit= 34.7 Ann= 36 DS= 617 500 • 1a00 III III 9500 Drilling Fluid FLGPRG NT 1600 L 25 Mud Weight 9.2 lb /gal Test Temp 60 °F 201a7. __ - SyslemData i I Flow Rate 650 gal/min 2000 Penetration Rate 80 ftlhr • 1111 Rotary Speed 80 rpm Weight on Bit 20 1000 lb 1 Bit Nozzles 0.902 in' j 11111 Pressure Losses 11 Modified Power Law Drill String 784 psi MWD 450 psi , – -i Motor 350 psi 11111 — — Bit 441 psi On/Off 100 psi 4 --- --- Annulus 45 psi 5200? I11 U Tube Effect 44 psi 1 I ' TotalSystem 2244 psi ESD ECD +Cut Csg Shoe 9.23 9.38 9.54 1 ��1 –.� 5585 - 12250 j , �.rr�rr0 ) _ TD 925 9 9.56 k8 Esp ? =In VaW Version I.1 Fann IS - r� � �. _. -... 1 - - - - File - 1.111 wool — FiThrut, j 41 PM Val % _ _ 100 Final Draft MOC KBU 11 -17 X - cl , I • • Mi SWACO VH HOLE CLEANING Mi 'JV P ©1995 -2006 M- IL.L.C. 92 ppg @650 GPM MD:5505 ft Operator:Marathon E�I �/- "��i.I MGM O1 D ate:i /16 MJ LlG TVD:5438 Ba Size:1225 in Looat ft WeIIName: KBU 11 -170 VIRTUAL HYDRAULICS* MIN* * bn:K ninsula 2009 Country Alaska Hole Cleaning Marathon KBU 11 -17X 1.00 ,.. --T _ — ROP 30 ft /hr ■ — ROP 90 ft /hr Poor Hole Cleaning ■ — ROP 120ft /hr ROP 150 ft /hr _._} _ ...._. 0. 75. x j E d Fair Hole Cleaning ill 03 0 50 _ __ CU 0 CD Good Hole Cleaning I 0.25 � - -- ' Very Good Hole Cleaning 400 500 600 700 Flow Rate (gal /min) Final Draft MOC KBU 11 -17 X • • Mi SWACO Section 7 — Production Interval (5585 - 7935') Depth Interval 7935' MD (7788' TVD) (8.5" OH, 3.5" liner) Drilling Fluid System FLOPRO Flo -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, Centrifuge Potential Problems Hole Cleaning, Hole Stability, Seepage losses INTERVAL MUD PROPERTIES Plastic Yield API 0 -1 Mud Wt. Viscosity Point Fluid Loss I SRV t..0 g (PPg) (cp (Ib /100ft (mll30min) 1 min tip pH 7935 9.6 -10.3 16 -25 14 -20 5 -7 30 -40000 9 -9.5 <6.� ➢ Fluid from previous hole section will be reconditioned and used in this section. ➢ NOTE: LoTorq additions at 3% minimum will be made after mud is sheared down so no losses over shakers. ➢ Periodic additions of LoTorq will be needed to maintain 3% minimal concentration. ➢ Condition mud prior to running 3.5" liner. Final Draft MOC KBU 11 -17 X • • Mg SWACQ Hydraulics / Hole Cleaning: Virtual Hydraulics Graphs The following graphs look at the ECD + cuttings at 5585' and moving cuttings concentration (MCC) in the annulus while drilling the section. VH SNAPSHOT M' ®1995 -2006 M -I LLC 10.3 ppg X500 GPM MD:7 ft OperatorMarathon 11-1 _ u •r4an<oru41.1.c. TVD:7788 788 ft WeIlName:lName: KBU 11 -17X • BM SIze:8S in Locatlon:Kenai Peninsula VIRTUAL HYDRAULICS* Snapshot Date11162009 CountryAlaska Depth Geometry Angle Density Va Hole Clean Pressure Distrbution (ft) MD/TVD Csg OD/113 ( (b/gaq (ft/min) Irides ( %) (n) (in) 0 45 90 100 104 108 11.2 0 200 400 Vs c F P Bit =257 Ann =11 DS= 63.3 n. -,-., d - 1 1 111.1111 4 °( F ■.. 11■■■ tAOa 1840 ■�■ ! 11.111. 111111111 i 111111 Daily Fluid FLOPRO NT _� ' ` I i I _,.._.1 11.. Mud Weight 10.3 lb /gal a ' _. Test Temp 80 °F 05 0 250 , ,. \ '.I a �'•• Flew Rate ystem Dat gal/min ssoo 'V , , , III III �� Penetration Rate 60 ft/hr 6 �Y IIII 11I Rotary Speed 80 rpm ^0 °° z , Weight on B it 20 1000 lb �' MO Bit Nozzles 0.778 in 00 5000 ,' ,�II a 1I f Pressure Losses Modified Power Law ill 95 si ssoo 559 ' '� 5529 III 11111 Gr MWD Slrin g 6 420 psi 5438 ; 9581 ' Motor 300 psi 3 9000 I Bit 393 p B On/Off 100 psi s: 111 moo 4 ( I' .. Bit 168 psi III.I 1 111E1 Surface Effect 29 psi 7000 U -Tube Effect 27 psi s III 1 2401 psi _ I, '111111. Total Syste ESD ECD +Cut 7500 1 Csg Shoe 10.34 10.74 10.81 8000 7535 ° eso0 I I, .. _. rr�� I 1111 1 III ® TD 10.35 10.76 10.83 • ]]98 ESD 1 IO 9mfl.Venienl.1 Fann9l • ECD FI rwu, 1,Xeoe 8500 - -- 1I II ` z. 'l. i Final Draft MOC K13U 11 -17 X i • • Mr SWACO VH HOLE CLEANING Mi SWAC ;,. ®1995 -2006 M- IL.L.C. 103 ppg @588 GPM MD:7935 ft Operator:Marathon � ° *a" �� c TVD:7788 ft WelName: KBU 11 -17X VIRTUAL HYDRAULICS* VRDH* Blt SIae:8.5 D ateaM 60009 b Locatbn:KanaiPenbaule CountryAlaska Hole Cleaning Marathon KBU 11 -17X 1.00 -_ -. .....,.... — Rob 251t /hr — ROP 50 ft /hr — ROP 75 ft/hr Poor Hole Cleaning — ROP 100ft /hr I - — ROP 125 ft/hr 0.75 — ROP 150 ft /hr K Fair Hole Cleaning C I Ip 0.50 CD � ~�`"-"'--- --... Good Hole Cleaning 0.25 Very Good Role Cleaning - ----- 340 360 380 400 420 440 460 480 500 520 540 560 Flow Rate (gal /min) Final Draft MOC KBU 11 -17 X � # • • Section 8 —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 Slzes (Shaker 1) (Shaker 2) 0 —1600 (Surface) 110 — 165mesh 110 — 165`,1Imesh 1600 — 5585 (Intermediate) 165 — 230 mesh 165 — 230 mesh 5585 — 7935 (Production) 200 — 230 mesh 200 230 mesh �I L. I �II�I I I I I II II I II I I I II I' i �I� il,l Ili'r Ii I . I b. I I Ii n, i l l I I — _ I I I II li I li I I Ii II I Ii Final Draft MOC KBU 11 -17 X w� 1 ,� a��h I,�Ilhl fill ^� � 0 Wa I rt i a IIS i�u 1 r 1 MaduY @L'cY 7, f'd Ikedll411 1 r, Mil BHVAC� ° . I 11 1 4`1 l i lIl ai I r ! 1Ila " '� , l ' Y I I lla i llul ��7 "�I i�0 �11r + l iylh,Vil �+lil I11 IYln i. .. o _ .. ,,, ,, Section 9 — Summary of Cost and Product Usage i s 16 in Hole Sections (1600 ft.) Product Unit Size Units Required Cost / Product M - Gel 50 # Sx. 597 $7,062 Caustic Soda 50 # Sx. 10 $421 Gelex 2# Sx. 25 $478 Polypac Supreme 50# Sx 10 $1,560 CF Desco 25# Sx. 8 $1,008. Soda Ash 50# Sx 10 $247 Total Estimated Product Cost $10,776 12.25 in Hole Section (1600 ft. - 5585 ft.) Product Unit Size Units Required Cost / Product M -1 WATE 50 # Sx. 535 $5,636 Sack Black 50 # Sx. 267 $18,017 SafeCarb (40,250,500) 50 # Sx. 2138 $56,659 Soda Ash 50 # Sx. 13 $332 Caustic Soda 50 # Sx. 27 $1,129 PolyPac UL 50 # Sx. 80 $11,497 FloVis 50 # Sx. 160 $33,152 Sodium Metabisulfite 50 # Sx. 27 $2,396 Defoam X 5 gal 15 $1,985 KlaGard 55 gal 24 $16,877 LoTorq 55 gal 73 $61,064 KCL 50# Sx. 534 $23,298 MIX II 25# Sx. 214 $5,960 Conqor 404 55 gal 8 $10,392 Total Estimated Product Cost $248,394 4 4 t ; Final Draft MOC KBU 11 -17 X • • It" ERIVA 8.5 in Hole Section (5585 ft. - 7935 ft.) Product Unit Size Units Required Cost / Product M -I WATE 50 # Sx. 1926 $20,318 Sack Black 50 # Sx. 48 $3,247 SafeCarb (40,250,500) 50 # Sx. 361 $7,232 Soda Ash 50 # Sx. 12 $299 Caustic 50 # Sx. 24 $1,018 PolyPac UL 50 # Sx. 30 $4,715 FloVis 50 # Sx. 48 $9,959 Sodium Metabisulfite 50 # Sx. 12 $788 Defoam X 5 gal 7 $895 Conqor 404 55 gal 4 $5,444 KlaGard 55 gal 11 $7,605 LoTorq 55 gal 27 $22,930 KCL 50# Sx. 193 $8,398 Bicarb 50# Sx. 12 $252 Total Estimated Product Cost $93,100 Final Draft MOC KBU 11 -17 X • • 4. M1 BWAC Summary of Product Cost and Engineering for P10„ P50, P Estimated Drilling Fluid Related Costs Engineering ' li I Depth Interval Costs Interval Cumulative (ft) • Product Costs ($) Days Cost Cost ($) ($) ($) Surface $10,766 $4,000 4 $14,766 $15,929 Intermediate $248,394 $8,000 8 $256,394 $272,323 Production $93,100 $6,000 6 $99,100 $371,423 Completion $8,604 $3,000 3 $11,604 - $383,027 P10 P50 P90 Total Estimated Product and Engineering Cost $229,816 24 $383,'7''`?'' $516,23'` 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 1 : 1 I I 1l i i I I I i I I „ I II I Final Draft MOC KBU 11 -17 X - Mil SWAG . . ... . . . _ Appendix 1 Lost Circulation Rec .111 l ndatlons mi; plan: ., :1 , : , !!!:116, 1 1 , ::::::,:,...:: Seepage Action Lost Circulation / See p 9 p ❑ Have sufficient sized LCM on rig to begin interval. It takes 40 ppb of sized calcium ca'flonate toake a ' 1 filter cake with this plugging material. Use in combination with 5 ppb Sack Black and Mix II at 5,14pb. ❑ Recommend hourly addition of LCM to keep a concentration in the system at all times f he addition of SafeCarb (40,250,500), MIX II (cellulosic fiber), Sack Black (treated gilsonite) and Gseai (sized graphite) 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 coo! 113 the 'i expected pore throat size and a D90 of cover the pore throat size. The D90 material sh;,puld make up 10% , of the total LCM ppb pumped. - 1 ' ❑ 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 f q' I ' I �� a �� iii �I i i 0 Final Draft MOC KBU 11 -17 X • • M� SWACC Appendix I — 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 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 i i 1 Spot 50 ppb pill *: Spot 80 ppb pill: Contact Drilling / 5 ppb G -SEAL 5 ppb _ G I x AL C 1 5 ppb L .. Asset Engineer M -I -X II M 15 ppb SAFECARB 250 15 ppb for approval SAFE CARB 40 10 ppb SAFECARB 500 20 ppb SAFE CARB 250 20 ppb Sack Black 10 ppb Pump thru BHA Circ sub required Spot 100 ppb pill Circ sub required G -SEAL 15 ppb M -I -X II C 15ppb SAFE CARB 250 30 ppb SAFECARB 500 30 ppb Magma Fiber Reg 10 ppb Squeeze high- fluid -loss pill *: FORM -A- SQUEEZE 80 ppb (2sx/bbl) in water Weighted up to desired density Pump thru BHA Final Draft MOC KBU 11 -17 X • • NV AC - . . . No success = Spot plug: Gunk Squeeze or FORM -A -SET AK Appendix 2 — Minimum Time to Circulate Prior To P0011 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' � $12e, inclination and flow history (i.e. mud properties and flow rate). These factors will affect th!�,0';� hei of any residual cuttings beds. Recent work by Exxon has indicated that the volume of p0, gs`leftbehind 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 Nip yoioci II considerations and field experience: WELL INCLINATION SECTION LENGTH FACTOR RANGE 17 -1/2 inch HOLE 12 -1/4 inch HOLE 8 -1/2 in,Ch0 OLE 0 ° - 10 ° 1.5 1.3 1.3 10 - 30 1.7 1.4 - 30 - 60 2.5 1.8 1.6 60 ° + 3.0 2.0 1.7 • _ 11 II Procedure _- I I i I I I I I �' II II II VI 1. Effective length Section length x section length factor. I ec g g g Iu� � � I I I Effective Length 2. Circulation time = 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 lenOths of section at each angle. Final Draft MOC KBU 11 -17 X • IVR sl31NA : _ Appendix 3 — HSE Issues ations for Mud S Safety Recommendations System y i Safet r ,i;, 1. The rig crew should be briefed on the makeup of the drilling fluid and its c ost. Y and ca � 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. ' + when you must work with the m ud. Proper e - u i me Wear personal protective equipment 3. p P Y p a �' nl,�ri�� includes: a. Safety glasses or goggles b. Hard hat I toed boots or shoes (recommend rubber for shaker and drill crew ,,,,,:,,t I c. Stee o ( ) d. Protective clothing (disposable suits or slicker suits) 44 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 m41 to stay;tn : r o n tact with your skin for longer than 30 -40 minutes. Do not wash with rig soap! US 0GOJO mechanics degreaser or other similar type product. ; ,„�� i ,, , nin fluid, t hen change your clothes. Do not cot ue to ' " � 1 5. If clothing becomes saturated with drilling u g y ! work in clothes saturated with mud. "„.*_„ 111::::, 111: 6. Designate one rig washing machine for muddy clothes. Do not wash other' cl i n tF h i' ,� machine. e other _� 7. Protective Equipment that has worked well o n 'obs „ , a. Disposable suites TYVEK BRAND b. Rubber boots: r oots: GO ODA LL BRAND POLY GRIP BOOTS MODEL #A154)' c. Coverall pants: GOODALL ARMOR LITE OVERALL, MODEL #C2522 ly,iii : : ;1 „, d. Coverall Jacket: GOODALL ARMOR LITE JACKET, MODEL #C2520 '')*:!_'" hill �� „�i iil��y! 8. Common sense when working with drilling fluid will prevent any safety problems. ifAyo'U _our 1 get drilling fluid on you, wash it off. If you have to work with or around the xr1r ' , + ` wear _Y mil protective equipment. Watch your step and clean up any spills. �� : ti' 1! ,V'I'II II0i ii i i i i 1 X Final Draft MOC KBU 11-17 � ti' Id��0,:i' • • MM SWAG Appendix 4 Recommended Drilling Practices A. Operational Procedures: 1. Stage into open hole several increments breaking circulation each time a'd, I � l ulatmg for a ^;I period of time to get the fluid moving. VII ,IIII 2. Idle pumps when beginning circulation to minimize surge pressures 3. Work p i p e and rotate while circulating to hel p break up g strengths stren the 4. Look for signs of barite sag when staging in the hole. Light mud near the 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 recommen ranges to compensate for this tendency. - - III II i d I I, ilillllii l i i , ' Il l Ilia l „I, lill I I ' 1 1 444 1 I 'I I I Final Draft MOC KBU 11 -17 X 1 • • Esk S AC0 n - Appendix 5 Contact informatiarr 1I I Title � ,'�� Contact e-mail Wflrk Cellular Pete Berga Drilling Superintendent pkberga@marathonoil.com 907 565 ' 231 „k, 6 Marathon ,111;8'30$ "; I, 1iii'�'i11?I'!Ii" i Will Tank Drilling Engineer wjtank @marathonoil.com 713 296 3273 , '713 203 !' Marathon Jim Dwyer Project Engineer jdwyer @miswaco.com 907 6463 ' 907 31' 4 55 6 MI SWACO '' Bob Myles Warehouse Manager rmyles @miswaco.com 907 776 -8722 - 907 2$ 4218 - ' MI SWACO Oliver Amend Field Engineer oamend @miswaco.com 907 2,838089 907 3984474 MI SWACO (hotne) Jim Brown Field Engineer Miswacogdrl @hotmail.com 907 398 -8500 -_ MI SWACO _ John Nicholson / Dan Drilling Foremen alaska_drilling @marathonoil.com 907 283-1312 Byrd i i� I''lil Marathon �,ti� i, ” II, i Appendix 6 — Resp i nsibilities II h ➢ MI Project Engineer and will coordinate daily between the Marathon office, rig, wa ,q d t M -I SWACO field engineers. "I'' i i > Well progress will be monitored to look for any changes, which will improve the efficiencyof l'1 I ,I� y ,;' i ,li,l lq '.1 : " !'I,�, operation or avert trouble. i : i;' h� J �, • Field E will monitor and supervise product inventory to include re- palletizing -any pr hVl 'for shipment to other locations at the end of the well. 1'"Ilr D 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 bas daily activities. Recap should include any lessons learned that may be used to provide betted rvicebn fut wells. Lessons learned can include changes in procedures, product additib'r' ,equipment usage, and /or utilization of any third party service. +I'ill'ii + +lhhlii l = i i �I - i Final Draft MOC KBU 11 -17 X - Alaska Department of Natural Resources Land Administration System Page 1 of 2 • • ,LannftecontsiStatus Plats Recorders Search State Cabins Natural ReSOU roes r Alaska DNR Case Summary File Type: FL File Number: 22330 a Printable Case File Summary See Township, Range, Section and Acreage? New Search (i° Yes r No LAS Menu Case Abstract 1 Case Detail 1 Land Abstract Fite: ADL 22330 Search for Status Plat Updates As of 01/29/2009 Customer: 000106901 UNION OIL COMPANY OF CALIFORNIA PO BOX 196247 ATTN: LAND MANAGER ANCHORAGE AK 995196247 Case Type: 785 O&G TRANS FEDERAL LEASE DNR Unit: 780 OIL AND GAS File Location: DOG DIV OIL AND GAS Case Status: 91 TRANSFERRED Status Date: 01/14/1981 Total Acres: 1854.720 Date Initiated: 01/16/1964 Office of Primary Responsibility: DOG DIV OIL AND GAS Last Transaction Date: 01/14/1981 Case Subtype: CI COOK INLET Last Transaction: CHGSTCD CASE STATUS CODE CHANGED Meridian: S Township: 004N Range: 011 W Section: 17 Section Acres: 640 Search Plats Meridian: S Township: 004N Range: 011 W Section: 18 Section Acres: 604 Meridian: S Township: 004N Range: 011 W Section: 19 Section Acres: 605 Legal Description 01-16-1964 *** TRANSFERRED FED LEASE RECEIVED LEGAL DESCRIPTION *** T. 4N, R. 11W, SM SECTION 17: ALL, 640 ACRES SECTION 18: ALL, 607.04 ACRES SECTION 19: ALL, 607.68 ACRES SECTION 20: ALL, 640 ACRES CONTAINING 2494.72 ACRES, MORE OR LESS. http://dnr.alaska.gov/projects/las/Case Summary .cfm?F ile Type—ADL &FileNumber=2233 ... 1/29/2009 Alaska Department of Natural Resources Land Administration System Page 2 of 2 • 01 -14 -1981 * * * SEGREGATION LEGAL DESCRIPTION LANDS REMAINING T. 4N, R. 11W, SM SECTION 17: ALL 640 ACRES SECTION 18: ALL 607.04 ACRES SECTION 19.• ALL 607.68 ACRES CONTAINING 1854.72 ACRES, MORE OR LESS. End of Case Summary Last updated on 01/29/2009. Not sure who to contact? Have a question about DNR? Visit the Public Information Center. Report technical problems with this page to the Webmaster. Site optimized for Netscape 7, IE 6 or above. This site also requires that all COOKIES must be accepted. State of Alaska Natural Resources LAS Home Copyright Privacy System Status http: / /dnr.alaska.gov /projects /las/ Case_ Summary .cfm ?FileType= ADL &FileNumber= 2233... 1/29/2009 • TRANSMITTAL LETTER CHECKLIST WELL NAME 3 1/ /7 PTD# ?090/6 V Development Service Exploratory Stratigraphic Test Non - Conventional Well FIELD: CD , ` POOL: &Q \ q (L) vt)(\ ©c`� 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 ( PI-I) 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 WELL PERK CH CKLIS Field & Pool KENAI, UP TYONEK BELUGA GAS - 448571 Well Name: KENAI BELUGA UNIT 11 -17X Program DEV Well bore seg PTD#: 2090160 Company MARATHON OIL CO Initial Class/Type DEV / PEND GeoArea 820 51120 On /Off Shore On Annular Disposal L Administration 1 Permit fee attached NA 12 Lease number appropriate Yes 3 Unique well name and number Yes 4 Well located in a defined pool Yes 5 Well located proper distance from drilling unit boundary 6 Well located proper distance from other wells Yes 7 Sufficient acreage available in drilling unit Yes 8 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 administrativeapproval Yes ACS 2/4/2009 13 Can permit be approved before 15 -day wait Yes 14 Well located within area and strata authorized by Injection Order # (put IO# in comments) (For NA 15 _ All wells within 1/4 mile area of review identified (For service well only) NA ,16 Pre - produced injector: duration of pre - production less than 3 months (For service well only) NA 117 Nonconven. gas conforms to AS31.05.030(f.1.A),(j.2.A -D) _ NA i 18 Conductor string provided Yes Engineering 19 Surface casing protects all known USDWs NA All aquifers > 1300' exempted 40 CFR 147.102 (b)(1)(iii). Casing planned @ 1.600' md. 20 CMT vol adequate to circulate on conductor & surf csg Yes 21 CMT vol adequate to tie-in long string to surf csg No 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 26 Adequate wellbore separationproposed Yes Proximity analysis performed. 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 10.2 EMW. MW planned up to 10.3 ppg or as needed. TE 2/10/2009 X 29 BOPEs, do they meet regulation Yes 49 n 30 BOPE press rating appropriate; test to (put psig in comments) Yes MASP w/ 30% mud, 70% gas 2335 psi. MASP w/ gas 3351 psi. 3000 psi BOP test appropriate. 'd'►' 31 Choke manifold complies w /API RP -53 (May 84) Yes EX 32 Work will occur without operation shutdown Yes 33 Is presence of H2S gas probable No H2S is not known in CI gas production. Rig has sensors and alarms. 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 137 Seismic analysis of shallow gas zones NA ACS 1/29/2009 38 Seabed condition survey (if off- shore) NA 39 Contact name /phone for weekly progress reports [exploratory only] NA Geologic Engineering Pu s Date: Date Date Commissioner: Commissioner: 411 -- •- -• er - 2 �a &,‘ *4 o? —/a -O 7 iir- • • Well History File APPENDIX information of detailed nature that is not particularly germane to the Well Permitting Process but is part of the history file. To improve the readability of the Well History file and to simplify finding information, information of this nature is accumulated at the end of the file under APPENDIX. No special effort has been made to chronologically organize this category of information. • mA Anii N KBU 11 -17X SEC 18 T4N R11W SM February 15, 2009 — February 28, 2009 III ..„....,,:„...;,,,,,c„,,,,, ,i , ,...,,,,,,,,,.„„ ,-,P ' ' ' ) �,. 1 . " i • , I\ ., .. .. s 4'T Craig Silva: Senior Logging Geologist Ralph Winkelman: Senior Logging Geologist ...III E POCH () _0( • M MARATHON OIL COMPANY KBU 11 -17X • TABLE OF CONTENTS 1 MUDLOGGING EQUIPMENT AND CREW 2 1.1. EQUIPMENT SUMMARY 2 1.2. PERSONNEL 2 2. GENERAL WELL DETAILS 3 2.1. OBJECTIVES 3 2.2. WELL RESUME 3 2.3. HOLE DATA 3 3. GEOLOGICAL DATA 4 3.1. SAMPLING PROGRAM AND DISTRIBUTION 7 4. DRILLING DATA 8 4.1. DAILY ACTIVITY SUMMARY 8 4.1. SURVEY RECORD 1 8 4.2. MUD RECORD 21 4.3. BIT RECORD 23 4.4. DRILLING PROGRESS CHART 24 • 5. DAILY REPORTS 25 Enclosures: 2 "/100' Formation Log (MD and TVD) 2 "/100' Drilling Dynamics (MD and TVD) ' El EPOCH MARATHON OIL COMPANY KBU 11 -17X • 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 all 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 11 -17X Unit Number: ML006 Years Days Sample Catchers/ Days Days Mudloggers Experience at Trainees at Technician at well well well Craig Silva 31 21 Tim Reiland 4 Steve Forrest 1 Ralph Winkelman 18 16 Jim Patterson 4 • [I EPOCH 2 `M) MARATHON OIL COMPANY KBU 11 -17X • 2. GENERAL WELL DETAILS 2.1. OBJECTIVES The objective of KBU 11 -17X 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 11 -17X Field: Kenai Gas Field County: Kenai Borough State: Alaska Company Representatives: Rowland Lawson Mitch Burns Dan Byrd John Nicholson Location: 439' FNL, 420' FEL, Sec 18 T4N R11 W SM, X= 275390.749, Y= 2356293.684 Classification: Multi Zone Development Gas API #: 50 — 133 — 20585 — 00 — 00 Permit #: 209 - 016 Activity Code: (WBS #s) DD.08.18948.CAP.DRL Rig Name / Type: Glacier #1 / Land / Double Elevation: Ground, RKB 66.40'GL, 88.15' RT Primary Targets: / Target Depths: Middle Beluga: (5628', 5492' TVD), Lower Beluga: (6244', 6108' TVD) ask Primary Targets: / Target Depths Tyonek: (7437', 7301' TVD) lip Spud Date: February 15, 2009 Total Depth 8055' Total Depth Formation: Tyonek Total Depth Date: February 28, 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 11 -17X Hole Maximum Depth T.D. Weu ht De Shoe Depth F.I.T. Section MD SSTVD Formation g (Inc) Casing MD SSTVD EMW (ppg) 16" 1588' 1499.30' Sterling 9.2 1.65 13 3/8" 1576' 1487.30' 12.0 12.25" 5600' 5375.60' Beluga 9.2 1.20 9 5/8" 5585' 5448.73' 12.0 8 ' /z" 8055' 7830.41' Tyonek 10.4 0.99 3 '/" 8012.42 7787.84' EXCAPE Y Completion El EPOCH 3 () AA MARATHON OIL COMPANY KBU 11 -17X 3. GEOLOGICAL DATA Tuffaceous Claystone/Tuffaceous Siltstone (5600'- 5900) = medium light gray to medium dark gray; most with fairly homogeneous gray colors, but pervasive minor fraction with strong light brownish gray to brownish gray secondary hues; note primary brown colors when significant carbonaceous content; most has easily discernible microshards, and some of the sandier looking siltstone has abundant larger grains of glass winnowed from volcanic ash; mostly soft to slightly firm or slightly brittle, but locally abundant brittle claystone - siltstone and traces of hard calcareous tuff; soft claystone is massive and structureless, hydrophilic, partially to entirely soluble, with moderate adhesiveness and moderate to poor cohesiveness; tuff claystone is supporting matrix for 90 %+ of sandstone; brittle claystones are occasionally slightly shaly, sub - fissile, and will separate in rough planar fashion; note that the most homogeneous and argillaceous- looking tuffaceous claystones are often shaly in part; volcanic ash - derived mudrocks are a mixture of clay and silt with varying concentrations of microshards, non- differentiated ash, devitrified ash, carbonaceous material and particles, very fine well distributed sand and larger floating sand grains; clayey to silty to ashy to various soft matte and mixed textures; earthy lustres that become microsparkly as content of more highly light reflective shards increases commonly with micro -thin carbonaceous laminations and particles; common carbonaceous tuffaceous claystone when adjacent to coals. Sand /Sandstone {5600'- 5900') = medium gray to light medium gray; common faint light brownish gray secondary hues and minor very faint light olive gray hues; moderately sorted in fine lower to medium lower range; full range very fine to granule; angular to subangular; very dominant tuff clay matrix support; near 100% compositional graywacke. Tuffaceous Claystone/Tuffaceous Siltstone {5900'- 60201 = medium light to light gray with light brownish gray secondary hues; shapeless, globular cuttings soft and sticky; silty to clayey to slightly gritty texture from fine grain suspended sands; dull, earthy luster; hydrophilic; moderate to very soluble; expansive when hydrated; poor cohesiveness; fair to good adhesiveness; trace dark brown to black • micro -thin carbonaceous laminations and inclusions; non calcareous; trace dark brown to black carbonaceous shale /material /coal. Sand /Conglomeratic Sand (5980'- 61001 = medium to medium light gray with light greenish gray secondary hues and trace salt and pepper appearance, individual grains dominantly clear to translucent quartz and volcanic glass, medium to dark gray, black, white, greenish gray; fine lower to trace very coarse upper to pebble, dominantly fine upper to medium lower; angular to subangular; poorly sorted; unconsolidated with common medium gray clay /ashy tuff as a supporting matrix; non calcareous; trace dark brown to black carbonaceous material /coal. Coal /Carbonaceous Shale /Material (6040'-61801 = black with dark brown secondary hues; firm to hard; brittle at times; blocky to platy; planar fracture dominant with trace conchoidal and birdeye; silty to slightly gritty texture; earthy to resinous luster; dominantly lignitic to sub - bituminous; poorly developed; trace visible outgassing bubbles. Tuffaceous Claystone/Tuffaceous Siitstone (6100'- 6020) = medium light to light gray with light brownish gray secondary hues; shapeless, globular cuttings; soft to slightly firm; sticky at times; silty to clayey to slightly gritty texture; dull, earthy to slightly waxy luster moderate to very soluble; slight to moderately expansive; poor cohesiveness; fair to good adhesiveness; non calcareous; trace to common dark brown to black micro -thin carbonaceous laminations and particles; trace thin coal /carbonaceous shale beds. Sand (6180'- 6300) = medium to medium light gray with light greenish gray secondary hues overall with individual grains dominantly clear to translucent quartz and volcanic glass, medium to dark gray to black, light to medium greenish gray; very fine upper to trace very coarse upper, dominantly fine upper to medium lower; angular to subangular; moderately well sorted in fine to medium range, poorly sorted in coarse; dominantly disaggregated with common light to medium gray clayey /ashy tuff supporting matrix; non calcareous; trace to common dark brown to black carbonaceous shale /material /coal as very thin beds in the sandstone and claystone country rock. 40 Li EPOCH 4 1M� MARATHON OIL COMPANY KBU 11 -17X • Coal /Carbonaceous Shale (6260'- 6380) = black with dark brown secondary hues; firm to brittle; splintery; blocky to platy; planar fracture dominant; trace conchoidal and birdeye; slightly gritty to smooth texture; dull to earthy luster lignitic in part; no to trace visible outgassing present. Tuffaceous Claystone /Tuffaceous Siltstone (6300'- 6420) = medium light to light gray with light brownish gray secondary hues; shapeless, globular cuttings; soft and sticky; silty to clayey to slightly gritty texture from fine grain suspended sands; dull, earthy luster; hydrophilic; moderate to very soluble; expansive when hydrated; poor cohesiveness; fair to good adhesiveness; trace dark brown to black micro -thin carbonaceous laminations and inclusions; non calcareous; trace dark brown to black carbonaceous shale /material /coal. Sand /Sandstone (6400'- 6520') = medium to medium light gray with individual grains dominantly clear to translucent quartz and volcanic glass, medium to dark gray, black, white; very fine upper to medium lower, dominantly fine grain; angular to subangular; moderately well sorted; dominantly unconsolidated with trace to common medium gray to grayish brown sandstone; very fine grain; shattered fragments common; very hard; very calcareous cement; trace to common dark brown to black carbonaceous material /coal; present as thin beds in dominantly claystone and sand formation. Tuffaceous Claystone/Tuffaceous Siltstone (6460'- 6580) = medium light to light gray with light brownish gray secondary hues; shapeless, globular cuttings; soft to slightly firm; sticky at times; silty to clayey to slightly gritty texture; dull, earthy to slightly waxy luster moderate to very soluble; slight to moderately expansive; poor cohesiveness; fair to good adhesiveness; non calcareous; trace to common dark brown to black micro -thin carbonaceous laminations and inclusions; trace thin coal beds. Sand /Conglomeratic Sand (6540'- 6670') = medium to medium light gray with weak salt and pepper appearance, individual grains dominantly clear to translucent quartz and volcanic glass, medium to dark gray, black, white, greenish gray; fine lower to trace very coarse upper to pebble, dominantly fine upper to • medium lower; angular to subangular; poorly sorted and dominantly unconsolidated with abundant light gray ashy /clayey supporting matrix; non calcareous; trace medium to medium dark gray sandstone; very fine grain; hard; well consolidated with very calcareous cement; trace to common dark brown to black carbonaceous shale /coal beds. Tuffaceous Claystone /Tuffaceous Siltstone (6620'- 6760) = medium to medium light gray with light gray and light brownish gray secondary hues; very soft to slightly firm; sticky at times; irregular, rounded to shapeless, globular cuttings; silty to clayey to slightly gritty from abundant fine grain suspended sands; dull, earthy to slightly waxy luster; hydrophilic; moderate to very soluble; slight to moderately expansive when hydrated; poor to fair cohesiveness fair to good adhesiveness; non calcareous trace dark brown to black micro -thin carbonaceous laminations and inclusions. Coal /Carbonaceous Shale (6730'- 6800) = black with dark brown secondary hues; firm to brittle; splintery; blocky to platy; planar fracture dominant; trace conchoidal and birdeye; slightly gritty to smooth texture; dull to earthy luster lignitic in part; no outgassing visible. Sand /Sandstone/Tuffaceous Sandstone (6670'- 6950') = light medium gray to medium gray; mostly homogeneous in color and general appearance; local very faint light olive gray or light brownish gray secondary hues; very fine lower to medium upper range; moderate to moderately well sorted overall; most is fine upper, close to fine- medium cutoff; no easily discernible fining upward; note very fine fraction is largely glass shards winnowed from volcanic ash; tuffaceous clay - volcanic ash is very abundant supporting matrix of sandstones, and often grades to very sandy tuffaceous claystones; note many individual cuttings pieces have clast -like concentrations of sand grains within clay, and vice versa, which look like imperfect hydrated micro rip -ups; angular to subangular, and discoidal to subspherical; very minor subrounded to rounded siliceous grains; spotty examples of support and cementation other than tuffaceous clay; trace grain supported calcite cemented sandstone; clayey sublithic arenite to mostly compositional graywacke. • II EPOCH 5 (M) MARATHON OIL COMPANY KBU 11 -17X Sand /Sandstone /Tuffaceous Sandstone (6950'- 70501 = minor changes from sand interval immediate above 6950'; medium gray, very homogeneous, no significant secondary coloration; moderately well to possibly well sorted in fine lower to marginal medium lower range; grains evenly distributed through supporting tuffaceous clay and ash matrix, thin bedding is not evident; note minor consolidated sandstone with combined support of brittle clay and calc mineralization also appears very massive; angular to subangular; abundant subspherical shape; evident improved visible porosity and permeability as inter - grain decreases; lithic arenite to compositional graywacke; estimate 50 -65% quartz and glass, trace feldspar, 5 -15% cryptosilica, 20 -45% lithicslmafic minerals dominated by distinctive partially schistose phyllite rock fragments. Tuffaceous Claystone /Tuffaceous Siltstone (7040'- 7160') = medium to medium light gray to light brownish gray with light to medium brown secondary hues; soft to slightly firm; very sticky; irregular to shapeless, globular cuttings; silty to clayey texture; dull to slightly waxy luster; very soluble; expansive when hydrated; poor cohesiveness; fair to good adhesiveness; non calcareous; trace to common dark brown to black micro -thin carbonaceous laminations and inclusions; scattered thin coal /carbonaceous shale beds throughout interval. Sand /Sandstone (7120' - 7300) = medium to medium light gray with a strong salt and pepper appearance, individual grains dominantly clear to translucent quartz and volcanic glass, medium to dark gray, black, medium to dark greenish gray; very fine upper to medium lower, dominantly fine grain; angular to subangular; well sorted; moderately well consolidated; friable; non calcareous cement; grain supported with light gray clayey supporting matrix; medium to dark gray sandstone is very fine grain; very hard; angular to shattered fragments; very calcareous cement. Coal /Carbonaceous Shale (7200'- 7340) = black with dark brown secondary hues; moderately firm to sectile and malleable flaky to splintery and platy; planar fracture dominant; trace conchoidal and birdeye fracture in harder fragments; gritty to silty to smooth texture; dull, earthy to resinous luster; lignitic to sub - bituminous; poorly developed; trace visible outgassing bubbles. Sand /Sandstone (7260' - 7380) = medium to medium light gray with a moderate salt and pepper appearance, individual grains dominantly clear to translucent quartz and volcanic glass, medium to dark gray, black, white and light to medium greenish gray; very fine lower to rare coarse lower, dominantly fine lower to medium lower; angular to rare subrounded, dominantly subangular; poor to fair sorting; dominantly unconsolidated with sandstone; fine grain; medium gray; friable; non calcareous. Tuffaceous Claystone /Tuffaceous Siltstone (7340' - 7460") = medium to medium light gray to light brownish gray with light to medium brown secondary hues; soft to slightly firm; very sticky; irregular to shapeless, globular cuttings; silty to clayey texture; dull to slightly waxy luster; very soluble; expansive when hydrated; poor cohesiveness; fair to good adhesiveness; non calcareous. SandlTuffaceous Sandstone (7400' - 7520')= note moderate change in 7400' sample and drastic change in 7460' sample; overall color is medium light to light gray with a large decrease in darker liths, dominantly clear to translucent quartz and volcanic glass, medium to dark gray, black and white; very fine upper to coarse lower, dominantly fine upper to medium lower; angular to subangular; moderate to moderately well sorted and consolidated with ashy supporting matrix white to grayish white and pinkish white matrix material; sandstone is friable to firm; pulverulent; very calcareous. Tuffaceous Claystone/Tuffaceous Siltstone (7500'- 7580') = medium to medium light gray to light brownish gray with light to medium brown secondary hues; soft to slightly firm; very sticky; irregular to shapeless, globular cuttings; silty to clayey texture; dull to slightly waxy luster; very soluble; expansive when hydrated; poor cohesiveness; fair to good adhesiveness; non calcareous; trace to common dark brown to black microthin carbonaceous laminations and inclusions; note sand and clay samples from 7520' to 7580' have many "Beluga-like" characteristics. El EPOCH M MARATHON OIL COMPANY KBU 11 -17X • Sand /Tuffaceous Sandstone (7580'- 7700')= note sample change at 7580' shows typical Tyonek tuffaceous sandstone; overall color is medium light to light gray with a large decrease in darker liths, dominantly clear to translucent quartz and volcanic glass, medium to dark gray, black and white; very fine upper to coarse lower, dominantly fine upper to medium lower; angular to subangular; moderate to moderately well sorted and consolidated with ashy supporting matrix white to grayish white and pinkish white matrix material; sandstone is friable to firm; pulverulent; non calcareous. Tuffaceous Claystone/Tuffaceous Siltstone (7620'- 7700') = medium light gray to light brownish gray with light brown secondary hues; very soft to slightly firm; sticky; silty to clayey texture; dull to slightly waxy luster; soluble; poor to fair cohesiveness; fair to good adhesiveness; non calcareous; trace medium brown firm silty rock closely gradational between sandy siltstone and silty sandstone. Sand /Sandstone/Tuffaceous Sand (7700'- 7860') = light gray with light brownish gray secondary hues overall with individual grains dominantly clear to translucent quartz and volcanic glass, minor dark gray to black grains; very fine upper to medium lower, dominantly fine lower to upper; angular to subangular; very well sorted; dominantly unconsolidated with light gray to grayish white, ashy supporting matrix; non calcareous; tuffaceous sandstone is fragile and friable. Tuffaceous Claystone /Tuffaceous Siltstone (7720'- 7860') = medium light to light gray with light brownish gray secondary hues; soft to slightly firm; irregular to rounded cuttings with rare pdc bit action "scooped" appearance; silty to clayey to slightly gritty texture from suspended sands; dull to slightly sparkly luster; moderate to very soluble; moderately expansive when hydrated poor to fair cohesiveness; fair to good adhesiveness; non calcareous; trace light brownish gray siltstone commonly grades between a silty sandstone and sandy siltstone; fragile; non calcareous. Sand /Sandstone / Tuffaceous Sandstone (7860'- 7960') = medium gray to light medium gray; locally higher lightness values as intergrain ash increases; some of the "cleaner- looking" grain supported weakly • calcite cemented sandstone has uneven salt and pepper appearance; very fine upper to coarse lower range, but overall moderately well sorted in fine upper to medium lower; evident fining upward; also note some fine sand with sparse but distinctive second mode of coarse lower; angular to subangular; dominant subdiscoidal to sub - spherical; significant fraction of sandstone has less intergrain material than previous and overall has fair to good visible porosity and permeability; dominantly disaggregated grains, but large fraction of consolidated sandstone; most sandstone is tuffaceous clay - volcanic ash matrix supported, but also very common grain supported calcite and /or silica cemented sandstone and common sandstone with complex intergrain material that includes ash - clay -silt, calc -silic mineralization, devitrified ash, microshards, alteration - replacement products; sublithic arenite to marginal compositional graywacke; estimate 60 -80% quartz and volcanic glass, trace feldspar, trace -15% cryptosilica (chalcedony, chert) various non - differentiated silica, 15 -30% argillite - phyllite and greenstone dominated lithics and mafic minerals. 3.1. SAMPLING PROGRAM AND DISTRIBUTION KBU 11 -17X Set Type and Purpose Interval Frequency Distribution Marathon Oil Company do C & M Storage, Inc. 3311 S U.S. Highway 77 A Washed and Dried 5600' — 8055' 20' Schulenburg, TX 78956 Attn: Scott Szalkowski (713) 296 3390 BOX INTERVALS: 5600' — 6820', 6820' — 8055' TD (2 Boxes Total) • El EPOCH 7 ("*"") MARATHON OIL COMPANY KBU 11 -17X • 4. DRILLING DATA 4.1. DAILY ACTIVITY SUMMARY 2/11/2009: Proceed with rigging down, loading off and transporting all Glacier No.1 rig modules, rig equipment, contractor support trailers, communication equipment, camp living quarter trailers and camp accessory equipment to the Kenai Gas Field, and spotting all items as per Marathon at KBU 11 -17X. Conduct comprehensive pre -job meeting with all hands on plan forward for craning down all rig components. Begin making preparations for craning. Rig down derrick board. Rig down dresser sleeves between pit room and pump room. Crane down back wind walls. Rig down gas buster. Lady down beaver slide and stairs above BOP conex. Remove hydraulic cylinder socks. Rig down choke line to poor boy degasser. Rig down mud lines and cement line. Blow down steam and water lines. Finish steaming, cleaning and pumping out Hansen tank, and then load out to be moved. Load out all miscellaneous equipment on available trailers. Crane down back wind walls. Prep derrick to scope down. Rig down service lines. Roll back, tie -up, secure and remove the carriers cover tarps and then rig down the metal bows that act as tarp supports. Unplug choke house and dog house. Rig down drillers console. Suck off fuel. Finish prepping, and then scope down the derrick. Empty water tank. Rig down and move out Inteq and M -I trailers. Prep to lay down derrick. Unplug carrier lines. Crane out back floor plate. Load out BOP conex. Rig down service lines. Load out catwalk. Crane off choke house, off side drillers stairs and platform, flow line, gray iron, dog house, drillers side stairs and derrick house. Remove exterior lights. Chain derrick. Unplug cooling towers. Rig and load out fuel tank. Load out centrifuge module to be used at next well. 2/12/2009: Continue rigging down, loading and transporting all Glacier No.1 rig modules, rig equipment, contractor support trailers, communication equipment, camp living quarter trailers and camp accessory equipment to the Kenai Gas Field, and then spotting and rigging up as per Marathon at KBU 11 -17X. Rig down brake linkage. Fold up wind walls. Remove turnbuckles on carrier and prep to move. Pull wires from generator to pump room. Lay down hand rails on pits, pump room and generator house. Release rig to KBU 11 -7X location. Rig down and load out welding shop, epoch unit, mud boat, mud pits and pump room. Remove and load out trip tank. Load out BOP stack. Unfreeze sub base legs. Lower sub base and load out. Load out boiler house, generator house and water house. Rig down and load out all remaining camp trailers. Begin unloading, spotting, adjusting and rigging up all components of Glacier No.1 in final positions as they arrive at KBU 11 -17X. Rig up camp trailers. Fill up camp water. Continue unloading rig trailers. 2/13/2009: General rig up operations as per Marathon of all Glacier No.1 rig modules, rig equipment, contractor support trailers, communication equipment, camp living quarter trailers and camp accessory equipment at KBU 11 -17X. Spot and level carrier. Pull wires from pump room to generator house. Install turnbuckles and prepare to raise derrick. Run water line to rig and fill water tank. Crane up derrick house. Raise derrick. Set fuel tank. Set wind walls on carrier. Crane in and set in place the gray iron, stairs on drillers side, landings, choke house, dog house, flowline and gas buster. Spot shock hose for pumps. Rig up pop off. Take on rig fuel. Rig up welding shop. Rig up dresser sleeves. Crane up v- doors. Rig up service line. Crane in and set in place the off side stairs, panic line, floor plate, back wind walls, cuttings tank, storage house and central module. Begin working on central module. Plug in carrier, doghouse and chokehouse. Fill boiler and start pre- heating. Rig up and make up u -tube and chokeline to degasser. Continue unloading trailers. Scope derrick up. Install metal bows and tarps on carrier. Rig up utility lines. Prep and rig drillers console. Set matting boards for pump #3 module. Set all oil products in place. Install beaver slide and BOP conex stairs. Dress #1 and #2 mud pumps. Dress shakers with starting (size 165) screens. Install mud pump pop -offs. Continue working on central module. Supply steam to rig. • El EPOCH 8 " "/ MARATHON OIL COMPANY KBU 11 -17X 2/14/2009; Continue general rig up operations at KBU 11 -17X. Rig up shock hoses. Install tarps on derrick base and cylinder socks. Set cellar grating in place. Install manual trip tank gauge. Prep, pick up, make up and hang torque tube. Install T -bar and turnbuckles for torque tube. Tighten bolts and adjust turnbuckles to secure in place. Circulate water and air throughout rig. Plumb on lines to central module. Pick up slide and Topdrive. Hang Topdrive and install slide. Rig up Topdrive service loop and kelly hose. Change saver sub and grabber dies. Install bails and elevators. Set #3 pump house in place. Rig up and make up pop -off, suction line and service lines for pump #3. Rig up manual drill pipe tongs. Rig up pipe spinner. Spot Epoch logging unit and Inteq MWD unit in place. Test run Topdrive and #1 and #2 mud pumps. Pick up and on drill floor the drill pipe slips, subs rack and drill pipe safety valves. Rig up derrick board. Begin thawing out cellar. Install choke line. Rig up bleeder lines. Troubleshoot and repair carrier engine #1 transmission shifter. Set in place and connect up accumulator lines to sub base. Begin mixing spud mud. Finish thawing out cellar. Cut and dress 20" conductor. Weld 2" nipple for for kill line. Install starter head and test to 500psi for 10 minutes. Nipple up diverter stack. Rig up kill line and flowline adaptor. Craig Silva arrives on location, spots Epoch Logging Unit #6 and rigs up unit power, the Gaitronics rig communications, all components of the Rigwatch 8.7 system, the Unit 6 computers and equipment, the external camp workstations, the wireless network to camp, the Starband Satellite system, and the gas system. A new well is initialized in RigReport, and Rigwatch is started up. Unit #6 is organized and prepared for logging KBU 11 -17X. 2/15/2009: Continue pre -spud rig up operations. Nipple up bell nipple. Rig up fill -up line, bleeder line, trip tank lines and flow lines. Rig up and tighten turnbuckles to stack. Install knife valve. Install accumulator lines. Install and chain downl6" diverter line. Finish mixing spud mud. Set pipe racks. Function test diverter system. Perform accumulator drawdown test. Pick up and make up 16" bit and bit sub with float to dean out conductor. Run in hole with 5" drill pipe and tag at 22'. Break circulation. Clean out conductor from 22' to 65'. Pull out of hole and lay down bit and bit sub. Prepare to pick up 5" drill pipe on the rack. 110 Pick up, make up and rack back in derrick 52 joints (26 stands) of 5" drill pipe. Pick up, make up and rack back in derrick 21 joints of 5" HWDP with a set of 6 3/4" jars (11 stands). Pick up, make up and run in hole partial directional assembly (16" bit, X -treme motor, NM stabilizer, pony NMDC, crossover). Run in hole with 5" HWDP and tag fill at 65'. Break circulation. Clean out conductor from 65' to its base at 157'. Spud Well when drilling out of conductor. Drill from 157' to 223'. Circulate bottoms up and circulate hole clean. Pull out of hole to 35', standing back HWDP. Pick up, make up and run in hole with added directional assembly (NM crossover sub, MWD, UPA sub, MN filter sub, NM crossover sub, 2 CSNMDPs, crossover) to 140'. Continue running in hole with 5" HWDP out of derrick and tag bottom at 223'. Drill from 223' to 391'. Craig Silva initializes the KBU 11 -17X database in DML and calibrates the gas system. Steve Forrest arrives on location and activates the Internet data communication via Starband. 2/16/2009: Drill (rotating and sliding) from 391' to 1588'. Circulate bottoms up. Pump around 40 bbl HI -Vis sweep with nut plug. Circulate another bottoms up and continue until shakers are clean. Pull out of hole (SLM, with no correction) from 1588' to 150' on wiper trip to conductor shoe. (Hole is slick coming out). Run back in hole from 150' to 1570' (with no ledges). Wash down from 1570' to bottom at 1588' (with no fill). Circulate bottoms up. Pump around 40 bbl HI -Vis sweep with nutplug. Circulate until shakers are clean. Monitor well (static). Pump dry job. �- [l EPOCH 9 �" MARATHON OIL COMPANY KBU 11 -17X 2117/2009: Pull out of hole with 5" drill pipe from 1588' to 813'. Pull out of hole standing back 5" HWDP and jars to 154'. (Hole slick on way out). Pull, break and lay down directional assembly (crossover, 2 NMCSDPs, MN crossover, NM filter sub, UPA sub, MVVD, NM crossover, pony NMDC, NM stabilizer, motor, bit). Inspect and grade bit. (Note seals in cone #3 still effective but not tight). Blow down mud lines. Clear and clean rig floor. Prepare and rig up 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 drillers side and install correct tong head. Install fill -up line. Install casing elevators. Rig down pipe spinner. Rig up casing tongs. Change out from short to tall snub post. 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 land at 1576' (with float collar at 1536'). Note slick casing run without tagging fill. Land casing out on base plate. Rig down and load off all Weatherford casing running equipment. Rig down fill up line. 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 1536'. Tag and sting into float collar and space out. Circulate and condition hole (1 1/2 casing volumes). Pump 250 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 3.0 bbls of water to fill cement lines. Pressure test to 2543psi. Bleed off pressure. Batch cement to 12.0ppg. Pump 181.0 bbls of 12.Oppg cement slurry (410 sacks Type I LW -6 cement and accelerator additives to 100.8 bbls of mix water for 10.328 gal water /sack and yield of 2.483 cu ft per sack). Pump cement slurry and then follow with 23.0 bbls of 9.2ppg mud to displace. No losses during pumping with 29 bbls good excess cement returns back to surface. 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 from 1536' to 1460' (while laying down 2 pups and 2 singles of 5" drill pipe) 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 traces of cement product. Dump returns during and after pumping ball. Finish pumping. Flush stack and mud lines with retarded water. Rig up false rotary table and pull out of hole with 5" drill pipe from 1460' to surface. Break and lay down stab -in assembly (5' pup, stab -in tool, centralizer). 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. Wait on cement. Change oil in carrier #2 engine. Rinse Hanson tank. El EPOCH 10 "M' MARATHON OIL COMPANY KBU 11 -17X 2/18/2009: Prep diverter for nipple down. 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 stub section. Change oil in carrier engine #1. Remove and lay down mousehole. Nipple down and rig down flow line, flow line extension, kill line, 2" valve, accumulator lines, bell nipple and scaffolding. Finish cleaning the pits. 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 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 1500psi for 10 minutes. Nipple down single gate. Change out and shim clutch discs and friction plates on drawworks clutch. Fill pits 1 and 2 with used 9.5 Flo -Pro mud from storage tanks. Clean up and de -ice 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. Complete electrical and plumbing work on centrifuge. Repair flowline adapter. 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. 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. Test all other BOPE to 250psi Low / 3000psi High for 5 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). Run centrifuge while testing BOPE to reduce MW from 9.5ppg to 9.1 ppg. Begin loading and strapping 5" drill pipe on pipe racks. 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. • 2/19/2009: Rig down test equipment. Blow down Topdrive, choke and mud lines. Slip 33' of drill line onto drum. Reset crown -o- matic. Service rig and equipment. Grease crown. Install elevators. Pick up and prepare pipe handling tools on rig floor. Pick up joints of 5" drill pipe off the pipe racks, drift, make up, run in hole, and then pull out racking back and strapping as stands in the derrick. Note 108 joints (54 stands) total of 5" drill pipe are added to the drill string. Clean rig floor. Lay out lower directional assembly on catwalk and remove snow from tools. 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 140'. Orient and scribe MWD tools and dress threads on crossovers while running in. Continue running in hole with 5" HWDP to 797'. Break circulation and surface test MWD. Continue running in hole with 5" drill pipe from 797' to 1429'. Install corrosion ring in next stand of 5" drill pipe to be added to string. Wash down from 1429' to 1529' and tag cement. Clean out cement and tag float collar at 1536'. Drill out and clean out float equipment and remaining shoe tract (cement, shoe at 1576', 12' of rathole) to 1588'. Note that spud mud is displaced on the fly with treated and centrifuge - cleaned reconstituted Flo -Pro mud while drilling out the shoe tract. Drill 20' of new hole from 1588' to 1608'. Circulate bottoms up. Pump around Hi -Vis sweep to clean hole. Cease pumping. Perform Formation Integrity Test to 12.0ppg EMW. Drill ahead with mud loss over shakers. Build mud volume while drilling. Drill from 1608' to 2019'. • El EPOCH 11 M MARATHON OIL COMPANY KBU 11 -17X 2/20/2009: Drill (rotating and sliding) from 2019' to 3643'. Circulate bottoms up. Pump around 40 bbl Hi- Vis sweep. Circulate hole clean. 2/21/2009: Build dry job while circulating hole clean. Check for flow. Prepare for wiper trip to 13 3/8" shoe. Pull out of hole from 3643' to 3328'. Pump dry job. Continue pulling of hole from 3328' to 1521' (inside shoe). Blow down. Service rig and Topdrive. Change gear lube oil in right angle drive. Fix leak at red tugger diverter valve. Run back in hole from 1521' to 3580'. Wash down from 3580' to bottom at 3643'. Drill (sliding and rotating) from 3643' to 4870'. 2/22/2009: Drill (sliding and rotating) from 4870' to 5500'. Circulate bottoms up and continue to circulate and clean hole until Marathon geologist has finished evaluating mudlog. Drill ahead from 5500' to intermediate casing point at 5600'. Circulate bottoms up. Pump around H -Vis sweep. Circulate hole clean. Check for flow. Pull out of hole from 5600' (to 3139') on wiper trip to shoe. 2/23/2009: Continue pulling out hole (from 3139') on wiper trip to 1551' (just inside 13 3/8" casing shoe). Service rig and Topdrive. Run back in hole from 1551' and tag tight spot at 3719'. Pull to 3706' (connection point). Break circulation and fill pipe. Wash down from 3706' to 3770'. Continue running in hole from 3770' and tag tight spot at 5439'. Pull to 5417' (connection point). Break circulation and fill pipe. Wash down from 5417' to bottom at 5600' (with no fill). Circulate bottoms up. Pump around Hi -Vis sweep. Record 42 units of wiper gas. Circulate sweep around and continue to circulate and clean hole until shakers clean. (33672 strokes total, 2 -plus bottoms up). Begin pulling out of hole from 5600'. (Record tight spots at 5490', 5473', 5448', 5385', 5381', 5375', 5365', 5340', 5296', 5289', 5249', 5233', 5044', 4981', 4759'). Continue pulling out of hole to 4400' (past top of Beluga Formation). Perform second wiper trip. Run back in hole from 4400' to 5543'. Break circulation and wash down from 5543' to bottom at 5600' (with no fill). Circulate bottoms up. Pump around Hi -Vis sweep with LCM added. Record 6 units of wiper gas. Circulate sweep around and continue to circulate and clean hole until shakers clean. (29740 strokes total, 2 bottoms up). Pull (1 1/2 joints and 10 full stands) 5" drill pipe out of the hole (SLM) from 5600' to • 4910'. Pump dry job. Continue pulling 5" drill pipe out of hole (SLM, with no correction) from 4910' to top of 5" HWDP at 797'. Pull out of hole standing back 5" HWDP and jars to 140'. (Note that hole was slick all the way out). 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. Using single joint elevators, 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. Close blind rams. • EPOCH oc H 12 ( MARATHON OIL COMPANY KBU 11 -17X • 2/24/2009: Change out top set variable pipe rams to 9 5/8" casing rams. Run in test plug, rig up test equipment and test 9 5/8" rams to 250psi Low / 3000psi High for 5 minutes. Rig down test equipment and pull test plug. Change out 2 control solenoids on off driller's side manrider. 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. Move torque tube back in derrick for clearance. Pick up 350 -ton casing elevators. Rig up Weatherford casing (power) tongs and tall snub post. Remove rotary bushings. Rig up casing spider slips. Rig up and function stabbing board. 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 and record in IADC. Pick up centralizers and lock rings and stage on rig floor. Tie one (red) tugger line back in derrick for picking up pipe, and the second (blue) tugger line back for hanging casing tongs. Hold pre -job meeting with 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 and 1 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 1563' (just inside 13 3/8" shoe). Break circulation, fill pipe and circulate bottoms up. Record 1 unit maximum gas. Hold second meeting with Weatherford and all hands at crew change on procedures and safety for running intermediate casing string. Continue running 9 5/8" casing in hole from 1563' to 5554'. Break circulation and wash down from 5554' to landing depth of 5585'. Record 6 units maximum gas while washing down. Land hanger on load shoulder in multi -bowl wellhead (at 5585.91'). Drain stack and verify landing. Continue to circulate and condition mud prior to cement job. Transfer 100 bbls of mud over to Hanson tank. Note that mud is treated with citric and bicarbonate prior to cement job. Circulate bottoms up and record 4 units of trip gas. 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. Stage cementing head with top and bottom plugs pre - installed on rig floor. Hold pre -job meeting with BJ and all hands on procedures and safety for cement job. Finish circulating 40 with rig pumps (13030 strokes total). 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. Rig up cementing head and cement lines. Blow air through cement lines and valves to clear. Switch to BJ pumping unit. Pump 3.0 bbls of water to fill lines and pressure test to 2808psi. Bleed off pressure and line out to pump spacer. Mix and pump 17.2 bbls of 10.0ppg Sealbond II spacer. Finish pumping spacer and shut down. Open up bottom valve and drop first (bottom) plug. Mix and pump 196.0 bbls of 10.5ppg cement slurry (327 sacks of Class G cement plus accelerator chemicals mixed with 99.70 bbls water to batch -up at 12.80 gal /sk and yield of 3.31 cu- ft/sk). Stop pumping. Open top valve and close middle and bottom valve on circulating head. Drop second (top) plug. Pump 4.9 bbls of water to kick out the top plug. Switch over to rig pumps. Displace cement with 418.0 bbls (8966 strokes) of mud (and 422.9 bbls total displacement). Bump plug with 980psi over circulating pressure (and 1410psi total pressure). Bleed off. Check floats. Cement in place. No losses of mud during displacement. Begin wait on cement. Flush down, blow down and rig down BJ cementing head and cement lines. • El EPOCH 13 (" MARATHON OIL COMPANY KBU 11 -17X • 2/25/2009: 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 9 5/8" pack -off and run in on 1 joint of HWDP. Energize seals and attempt to test packoff. Test failed. Pull pack -off and observe bad o- rings. Remove drip pan and pull riser. Replace o- rings. Run in packoff second time, energize seals and successfully test packoff to 5000psi for 10 minutes. Pull and lay down packoff and joint of HWDP. 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 test plug. Rig up testing equipment. Test [#1] annular preventer to 250psi Low /2500psi High for 10 minutes. Test all other BOPE to 250psi Low /3000psi High for 10 minutes ( [ #2] upper pipe rams, check valve, dart valve, upper Topdrive IBOP, CMVs 1- 10- 11 -12, [ #3] floor valve, lower Topdrive IBOP, outside kill valve, CMVs 6 -8 -9, [#4] inside kill valve, CMVs 2 -5 -7, [ #5] HCR, [ #6] manual choke, [ #7] CMVs 3 -4, blind rams ). Perform accumulator drawdown test. Test gas alarms. Rig down testing equipment. Pull test plug. Install wear bushing. Service rig. Readjust and set torque tube. 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 793'. Test MWD pulse signal. Install corrosion ring to first joint of 5" drill pipe. Strap, pick up, rabbit, drift, make up and run in hole 68 joints (34 stands) of pre- staged and prepped 5" drill pipe off the pipe racks. Run racked 5" drill pipe in hole to 2939'. Briefly fill pipe. Continue running in hole with stands of 5" drill pipe out of the derrick from 2939' to 5380'. Stop running in drill pipe and test 9 5/8" casing to 1500psi for 30 minutes. 2/26/2009: Finish testing 9 5/8" casing. Blowdown mud lines and choke manifold. Break circulation. Wash down from 5380' to 5497' (above float collar). Tag up cement at 5497'. Drill cement to top of float collar at 5499'. Drill out float collar and remaining shoe tract (float, cement in spacer joints, casing shoe at 5585', 15' of rathole) to 5600'. Drill 20' of new hole from 5600' to 5620'. Circulate bottoms up and continue • circulating to clean hole. Swap over older citric and bicarbonate treated Flo -Pro mud in the hole with "cleaned -up" Flo -Pro mud on the fly while drilling shoe tract, new hole and circulating out. Cease circulating and pull up 1 1/2 stands back into the casing at 5536'. Perform Formation Integrity Test (9.4ppg, 5463tvd, 711 psi) to 12.0 EMW. Blow down kill and choke manifold. Run back in hole from 5536' to 5598'. Break circulation and wash down from 5598' to 5620'. Drill from 5620' to 6925'. Circulate bottoms up. Record high gas, including maximum 270 units (at 6901'), circulating up last stand of hole drilled. Circulate high gas down and continue circulating while building mud weight from 9.4ppg to 9.7ppg. Circulate and condition mud to 9.7ppg all the way around. Check for flow. Pull out of hole from 6925' to 6608' on wiper trip to shoe. Note hole sticky and pulling tight from 6718' to 6608'. 2/27/2009: Continue pulling out of hole on wiper trip to shoe. Continue pulling generally sticky and tight from 6608' to 6228', requiring frequent working of the pipe. Kelly up, circulate as necessary, and backream out from 6228' to 5534' (inside 9 5/8" shoe). Blow down mud lines. Service rig and Topdrive. Fix hydraulic fluid leak from new hose on Denison pump. Run back in hole from 5534' to 6862'. Wash down from 6862' to bottom at 6925'. Clean out 7' of fill. Record 100 units of wiper gas on bottoms up. Drill from 6925' to 7700'. Circulate bottoms up for mudlog evaluaton by Marathon geologist. Continue drilling from 7700' to 7935'. On way to 7935', record 1675 units of gas from connection at 7877' and over 1500 units of formation gas to7879'. Circulate bottoms up at 7935' for mudlog evaluation by Marathon geologist. Continue circulating and increase mud weight from 9.7ppg to 10.3 ppg. Drill ahead from 7935' to 7972'. • Ell EPOCH 14 c MARATHON OIL COMPANY KBU 11 -17X • 2/28/2009: Continue to drill ahead from 7972' to 8055'. Circulate bottoms up and continue circulating until 8055' is confirmed as the T.D. of the well by the Marathon geologist. Record 1106 units of of gas from connection at 8002' and observe 371 units of formation gas at bottoms up. Check for flow and prep for wiper trip. Pull out of hole slick from 8055' to 7927'. Pull of hole from 7927' with significant sticking, requiring working of pipe several times on way to 7687'. Kelly up and backream out of hole from 7687' to 6925'. Note that gas circulated out during backreaming is increasing with each stand on way out, reaching 374 units on last stand to 6925'. Run back in hole from 6925' to 7938'. Break circulation and wash down from 7938' to bottom at 8055'. Begin circulating bottoms up. Gas increased from 270 units to 450 units within the first 1000 strokes, began increasing rapidly approximately 2000 strokes before bottoms up and reached a maximum recorded 3960 units when well was shut in 1000 strokes before bottoms up and circulated through gas buster (at 72spm, 324psi). Circulate 1100 strokes through gas buster and then cease circulating and shut well in. No pressure build -up in hole or drill pipe. Open annular and circulate conventionally on 2 pumps (at 90spm, 1000psi). Gas reached 1374 units maximum within 400 strokes after opening annular. Circulate gas back down to 100 units within 1260 total strokes after re- opening annular. (Note that mud weight stayed constant at 10.3+ in and out through all shut -in and circulating events since wiper trip). Increase conventional pump rate to 120spm, 1050psi on 3 pumps and begin building mud weight to 10.5 ppg. Gas dropped down to 45 units after 10.5 ppg is reached all the way around. Begin pulling out of hole on wiper trip to 9 5/8" shoe. Pull out of hole free from 8055' to 6925'. Hole began pulling very tight and sticky at 6888'. Run back in to 6925' and kelly up. Pull out of hole back reaming from 6925' to 6038'. (Note maximum gas of 134 units while backreaming). Continue to pull out of hole without needing to backream and with only very minor sticking from 6038' to 5534' (inside of shoe). Run back in hole from 5534' to 8000'. Break circulation. Wash down from 8000' to bottom at 8055'. Begin circulating bottoms up. Start circulating around. Record 1942 units of wiper gas at bottoms up. Begin circulating gas down and increasing mud weight from 10.5+ to 10.7ppg. Observe 595 units of gas when sweep returns. Continue circulate, clean and condition hole while weighting up. Gas reduced to 6 units when 10.7 ppg is achieved all the way around. Check for flow. Mix and pump slightly higher weight dry job. Fill trip tank. Pull out hole (SLM) from 8055' to 5534' (inside 9 5/8 "). Monitor well for 5 minutes. Continue pulling out of hole from 5534' to 2621'. 3/01/2009: Continue pulling out of hole from 2621' to top of bottom hole assembly at 792'. Pull and stand back 11 stands of 5" HWDP (21 joints plus jars) to 136'. 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. 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 8055'. Log up from with WWS Quad -Combo assembly from 8055' to 7800'. Run back to bottom 2 times and log up 2 times over latter interval to make a dedicated repeat section and to check caliper function and orientation. On final pass, log up with WWS Quad - Combo assembly from 8055' to 5585' in open hole and from 5585' to 1600' in cased hole. Pull wireline assembly out of hole from 1600'. Unload sources. Break and lay down Quad -Combo logging tools. Rig down lubricator, pack off and single of 5" drill pipe. Rig down sheaves and wireline running equipment. Continue to monitor well with trip tank. Begin wait for pressure point determinations by Marathon Geology. Pick up and make up mule shoe to first stand of open -ended 5" HWDP. Run in hole with 5" HWDP to 125'. Break and lay down jars. Continue running in hole with 5" HWDP to 626'. Crossover to 5" drill pipe and continue running in hole to 5570'. Cut and slip 171' of drill line. Slip back to 21 wraps (140'). Reset and check crown -o- matic. Continue running in hole with drill pipe from 5575' to 7907'. Strap, pick up, drift and single in joints of 5" drill pipe from 7907' to 8055'. Break circulation and wash down last joint from 8021' to bottom at 8055' (with no fill). Circulate bottoms up and record 867 units of trip gas. Circulate high gas down and continue to circulate, clean and condition hole. Check for flow. Pump dry job. Pull out of hole from 8055' to 5567'. Hold pre -job meeting with Weatherford Wireline Services' loggers on procedures and safety for handling wireline running equipment and logging tools. Stage logging tools on catwalk. Hang sheaves and rig up wireline running equipment and install lubricator and packoff. Pick up, make up and prepare to run MFT logging assembly inside the 5" drill pipe. Continue wait on pressure point determinations by Marathon Geology. El EPOCH 15 /4011) MARATHON OIL COMPANY KBU 11 -17X 4111 3/02/2009: Run downhole inside 5" drillpipe and HWDP with Weatherford Wireline Services' MFT logging assembly and park at 5560' (just above the muleshoe) until pressure point determinations are finalized by Marathon Geology. Monitor well through all wireline operations with the trip tank. Receive pressure point list from geolgist. Run MFT assembly down through the muleshoe at 5564' and continue downhole to 7950'. Do gamma correlation and position formation tester at first pressure point. Log up, taking pressure points from 7941' to 7889'. Tool performance indicates a plugged sensor on a series of tests from 7889' to 7830'. Pull out of hole with wireline logging assembly and inspect and clean MFT tool sensor pads. Run back in hole with MFT assembly and log up taking pressure points from 7889' to 6458'. Note various rig servicing, maintenance and other activities while wireline logging is taking place (putting out ice melt and sand, greasing pit valves, setting up MagTec heaters, fabricating new access doors for sub -base, cleaning beaver strainers, working on manriders, computer safety training, checking pump control on Driller's console extension, repairing air slips, changing out roto -seal on drill floor water hose, cleaning snow and ice from rig mats, doing an inventory of pump parts and shaker screens, cleaning and stacking used pallets and verifying the inventory of mud products). 3/03/2009: While wireline logging, continue monitoring well with trip tank and performing needed rig services. Continue logging up with wireline MFT tool, taking pressure points from 6458' to 6200'. Pull out of hole with wireline assembly. Break and lay down MFT logging tools. Rig down lubricator, pack -off and single of 5" drill pipe. Rig down Weatherford Wireline Services' sheaves and wireline running equipment. Clear and clean rig floor. Set up to pull drill pipe. Pull out of hole from 5567' with 5" drill pipe and HWDP. Break and lay down muleshoe. 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 2932' (inside casing). Break circulation and circulate bottoms up. Record 2 units maximum gas. Continue running in hole to 5590' (just outside of shoe). Break circulation and circulate bottoms up. Record 21 units maximum gas. Continue running in hole to 7996'. Break circulation and wash down from 7996' to bottom at 8055'. Circulate bottoms up and record 1503 units of trip gas. Circulate, clean and condition hole while raising mud weight from 10.8ppg to 11.0ppg. Treat mud with corrosion inhibitor, oxygen scavenger and caustic while getting to 11.0ppg. Monitor well. Take a new slow pump rate. Check for flow. Pump dry job. Pull out of hole from 8055' to 7905' laying down 5" drill pipe. Blow down Topdrive and mud lines. Continue pulling out of hole from 7905' laying down 5" drill pipe to top of 5" HWDP at 660'. Remove corrosion ring from last joint of drill pipe. Pull and lay down 5" HWDP and jars. 3/04/2009: Break 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. Level up mast while changing bails and elevators. Pick up, make up and set 3 1/2" test joint. Rig up test equipment. Test 2 7/8" by 5 1/2" variable rams to 250psi Low / 2000psi High for 5 minutes. Rig down test equipment. Pull and lay down test joint. Test safety valve to 250psi Low / 2000psi High for 5 minutes. 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 tool. 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 down to floor and tie off the 2 control lines and a protector dummy line. 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. 13 modules are to be run. Hold pre -job meeting with all hands on procedures and safety for running 3 1/2" EXCAPE completion string. Begin running in hole with 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 to carefully pick up, make up and run in hole to 1609', the modules section of the completion string (Davis Lynch float tools, 13 EXCAPE modules, 28 standard joints, 19 pup joints, chemical injection module). Break circulation and circulate out. Continue running in hole with 3 1/2" EXCAPE casing to 5563' (just inside 9 5/8" shoe). Rig up circulating head and 2" line. Begin circulating, bringing pumps up slowly. Circulate 2603 strokes (121.29 bbls at 105spm, 675psi, 205.5gpm). Cease pumping and continue running in hole with 3 1/2" EXCAPE casing from 5563' (to 6246'). 411 El EPOCH 16 ( MARATHON OIL COMPANY KBU 11 -17X • 3/05/2009: Load out drill pipe and haul off while running casing. Continue running in hole with 3 1/2" EXCAPE casing from 6246' to 8015.22'. Terminate control lines and cable. Lower crane. Rig down and load off sheave. Loading out pipe racks after casing is run. Rig up circulating head and line. Circulate while reciprocating pipe. Circulate bottoms up. Record 38 units of trip gas. Continue circulating (13778 total strokes). Stop pumping. Rig up Expro Wireline Service equipment and hold pre -job meeting on wireline operations. Run in hole with gamma log to determine positioning of EXCAPE modules. Log interest interval and pull out of hole with wireline assembly. Gamma correlation requires shoe moved up 2.8' to 8012.42'. Rig down Expro WLS. Move 200 bbls of mud to Hanson Tank prior to cementing. Add inhibitor mud system while circulating. Vac truck with brine is lined out for cement job. Rig up cementing head and wash down line. Head has 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 meeting with BJ on procedures and safety for cement job. Pump 3.2 bbls of water to fill lines. Pressure test cementing lines to 4144psi. Bleed pressure. Mix and pump 41.1 bbls of 11.5ppg MCS -4D Spacer (mixed with 38.14 bbls water), then pump 235.0 bbls of 15.8ppg cement slurry (1132 sacks of Class G cement plus accelerator chemicals mixed with 132.31 bbls water to obtain 4.909 gal /sk and yield 1.170 cuft/sk). Shut down, close valve to head and open wash -up valve. Pump 4.0 bbls water to clean out pumps and wash lines from floor out to slop tank. Close wash up valve and open to head. Drop (top) plug and change valves to pump out. Pump out plug with 1.5 bbls of 3% KCI brine and continue pumping 68.9 bbls more to displace cement. (Total displacement is 70.4. bbls). Record maximum 4 units of gas while displacing. Bump plug with 1023psi over 2184psi circulating pressure. Bleed off pressure. Check floats. Cement in place. Wait on cement. Note no losses and no returns to surface during cement job. Flush and blow down cementing head and lines back to slop tank. Rig down and lay down cementing head. Remove all remaining tools. Clear and clean rig floor. Flush and blow down all mud pumps, mix pumps and pump lines, choke manifold and choke lines, mud manifold, fill and trip lines, overhead and mud pump -out lines. Drain trip tank. Flush, washout and blow down stack. Pull and lay down mousehole. Pump out cellar and clean up sub -base. Pump out all fluid used for flushing to a Vac truck. Begin pumping most Flo -Pro mud in the pits through the centrifuge, to reduce the mud weight to 9.8ppg, and also "scrub" the mud and chemically treat it prior . to storage for use on the next well. Pump out all unrecycled mud into Vac trucks for haul off, and then begin cleaning emptied -out pits. Unchain stack for nipple down. Nipple down flow nipple, choke line, kill line and turnbuckles. Remove and load off drip pan. Rig down bleeder. Rig down fill -up and trip tank lines. Nipple down, pull and remove riser. Rig down accumulator lines and panic line. Remove kill line check valve and chokeline hardline. Rig up bridge cranes to BOP stack. Remove top spacer spool. Unbolt and pickup stack as per Marathon. Finish centrifuging, conditioning and hauling off bulk storage Flo -Pro mud. Continue cleaning empty pits and hauling off wash water. 3/06/2009: Pick up 3 1 /2" casing to 75K. Run control lines and electric line through 3'/z" packoff to tubing bonnet assembly. Terminate control lines with Swagelok fittings. Set 60K weight on slips. Make rough cut above the slips on 3 '/" casing. Pull and lay down landing joints. Slide BOP stack out of the cellar and begin nipple down. Set BOP stack on rack, finish nipple down and remove stack and spool. 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. Rig down standpipe manifold. Begin rig down of all Glacier No.1 components. Begin loading trailers with rig and third party equipment for transport. Pump last of 370 bbls of centrifuged and treated 9.8ppg mud to Rain 4 Rent tanks for storage. Finish cleaning pits and pumping off all 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 the KBU 42 -6X location. Ralph Winkelman and Craig Silva rig down all components of the Rigwatch 8.7 system, the gas system, the Unit 6 computers and equipment, the external camp workstations, the wireless network to camp, the Starband Satellite system, the Gaitronics communications and unit power. Unit #6 is organized and secured for transport across the Kenai Gas Field to the nearby KBU 42 -6X location. • El EPOCH 17 • • 4110 M MARATHON OIL COMPANY KBU 11 -17X 4.1. SURVEY RECORD Measured Vertical Rectangular Rectangular Closure Depth Inclination Azimuth TVD Section Coordinate Coordinate Closure Azimuth DLS ( +) N/S ( -) ( +) ENV ( -) (ft) ( deg) (deg) (ft ) (ft) (ft) (ft ) (ft) (deg) ( deg /100ft) 0 0.00 000.00 0 0 0 0 0 0 0 214 0.48 325.98 214.00 -0.81 0.74 -0.50 0.90 325.98 0.22 335 0.62 343.02 334.99 -1.74 1.79 -0.98 2.04 331.38 0.18 454 1.87 334.08 453.98 -2.97 3.22 -1.56 3.58 334.15 0.23 575 1.48 343.41 574.96 -4.87 5.54 -2.41 6.04 336.52 0.53 696 1.17 079.22 695.94 -5.08 7.27 -1.64 7.45 347.29 1.63 818 0.90 090.39 817.92 -3.31 7.50 0.54 7.52 4.14 0.28 945 1.15 090.18 944.89 -1.34 7.49 2.81 8.00 20.60 0.20 1072 2.06 127.83 1071.85 2.03 6.08 5.89 8.47 44.09 1.06 1199 2.26 127.63 1198.76 6.77 3.15 9.68 10.18 71.95 0.16 1325 2.52 138.12 1324.65 11.87 -0.43 13.49 13.50 91.81 0.40 1452 2.50 138.66 1451.53 17.16 -4.58 17.19 17.79 104.94 0.02 1530 1.70 130.67 1529.47 19.91 -6.62 19.19 20.30 109.02 1.09 1626 1.62 128.51 1625.43 22.65 -8.39 21.33 22.92 111.47 0.11 1813 1.71 126.73 1812.35 28.04 -11.70 25.64 28.18 114.54 0.06 1940 2.09 129.97 1939.28 32.21 -14.32 28.93 32.28 116.34 0.31 2069 2.29 128.83 2068.19 37.07 -17.45 32.74 37.10 118.06 0.16 2196 2.47 130.11 2195.08 42.28 -20.81 36.81 42.28 119.48 0.15 2259 3.20 133.07 2258.00 45.33 -22.88 39.13 45.33 120.32 1.18 2323 4.60 136.08 2321.85 49.54 -25.95 42.22 49.55 121.58 2.21 2387 5.97 133.57 2385.58 55.25 -30.09 46.41 55.31 122.96 2.17 2450 7.49 133.41 2448.14 62.44 -35.17 51.77 62.58 124.19 2.41 2513 8.98 132.42 2510.49 71.24 -41.31 58.38 71.52 125.28 2.38 2576 11.11 128.81 2572.52 82.05 -48.43 66.74 82.46 125.97 3.52 2640 12.58 126.88 2635.16 95.07 -54.48 77.12 95.59 126.22 2.38 2703 13.95 122.70 2696.48 109.48 -64.70 89.00 110.03 126.02 2.65 2766 15.47 120.00 2757.41 125.47 -73.01 102.67 125.98 125.42 2.65 2830 17.17 118.43 2818.83 143.44 -81.77 118.37 143.87 124.64 2.74 Ell EPOCH 18 • O • M MARATHON OIL COMPANY KBU 11 -17X 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 /100 ft) 2892 18.46 118.93 2877.86 162.40 -90.88 135.01 162.74 123.95 2.10 2955 19.07 119.78 2937.51 182.67 - 100.81 152.67 182.95 123.44 1.06 3019 19.74 119.94 2997.87 203.93 - 111.40 171.11 204.18 123.07 1.05 3082 21.29 118.67 3056.87 226.00 - 122.20 190.36 226.21 122.70 2.56 3146 23.04 117.36 3116.14 250.13 - 133.53 211.68 250.28 122.24 2.84 3208 24.49 116.75 3172.88 275.07 - 144.89 233.94 275.17 121.77 2.37 3272 24.27 117.92 3231.18 301.46 - 157.02 257.40 301.52 121.38 0.83 3335 24.29 117.85 3288.61 327.34 - 169.14 280.30 327.38 121.11 0.06 3399 24.00 118.14 3347.01 353.50 - 181.42 303.42 353.52 120.88 0.49 3461 23.83 118.06 3403.68 378.61 - 193.26 325.59 378.63 120.69 0.28 3523 23.84 117.72 3460.40 403.64 - 204.98 347.73 403.65 120.52 0.22 3586 23.69 117.69 3518.05 429.01 - 216.78 370.21 429.01 120.35 0.24 3650 23.59 118.34 3576.68 454.65 - 228.84 392.87 454.65 120.22 0.44 3713 23.77 118.78 3634.38 479.95 - 240.94 415.09 479.95 120.13 0.40 3776 23.73 117.55 3692.04 505.30 - 252.91 437.46 505.30 120.03 0.79 3839 23.72 117.14 3749.72 530.62 - 264.55 459.97 530.63 119.91 0.26 3902 22.71 118.07 3807.62 555.42 - 276.06 481.98 555.44 119.80 1.71 3965 21.84 117.97 3865.92 579.28 - 287.28 503.06 579.31 119.73 1.38 4029 21.16 119.26 3925.46 602.73 - 298.51 523.65 602.76 119.69 1.29 4093 20.41 120.78 3985.30 625.44 - 309.86 543.32 625.47 119.70 1.44 4155 19.51 120.86 4043.57 646.60 - 320.71 561.49 646.63 119.73 1.45 4219 18.79 121.64 4104.03 667.59 - 331.60 579.44 667.61 119.78 1.19 4282 18.21 122.46 4163.77 687.57 - 342.20 596.39 687.59 119.85 1.01 4346 16.79 124.77 4224.81 706.78 - 352.84 612.42 706.79 119.95 2.47 4409 16.36 123.21 4285.19 724.71 - 362.89 627.32 724.72 120.05 0.98 4473 15.37 122.10 4346.76 742.19 - 372.33 642.04 742.19 120.11 1.62 4536 14.20 122.33 4407.67 758.26 - 380.90 655.65 758.26 120.15 1.86 4599 13.30 117.94 4468.86 773.22 - 388.43 668.58 773.22 120.16 2.19 4663 12.52 116.96 4531.25 787.50 - 395.03 681.26 787.51 120.11 1.27 4726 10.40 113.88 4592.99 799.97 - 400.42 692.55 799.98 120.04 3.50 El EPOCH 19 • • • (M) MARATHON OIL COMPANY KBU 11 -17X 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 /100 ft) 4790 9.41 113.76 4656.03 810.91 - 404.87 702.62 810.92 119.95 1.55 4853 8.55 114.82 4718.26 820.69 - 408.91 711.59 820.71 119.88 1.39 4917 7.09 114.47 4781.66 829.36 - 412.54 719.50 829.38 119.83 2.28 4980 5.59 118.04 4844.28 836.29 - 415.60 725.75 836.32 119.80 2.46 5044 4.18 119.83 4908.04 841.74 - 418.22 730.52 841.77 119.79 2.22 5107 2.58 113.16 4970.93 845.44 - 419.92 733.82 845.47 119.78 2.61 5170 1.77 106.00 5033.88 847.79 - 420.75 736.06 847.83 119.75 1.35 5234 1.57 101.27 5097.86 849.58 - 421.19 737.87 849.62 119.72 0.38 5297 1.58 107.24 5160.83 851.24 - 421.62 739.54 851.29 119.69 0.26 5361 1.30 099.03 5224.81 852.78 - 421.99 741.10 852.83 119.66 0.54 5424 1.33 093.89 5287.80 854.10 - 422.16 742.54 854.15 119.62 0.19 5488 1.35 097.15 5351.78 855.46 - 422.30 744.03 855.52 119.58 0.12 5543 1.20 100.61 5406.77 856.60 - 422.49 745.24 856.66 119.55 0.31 5673 0.73 84.48 5536.75 858.55 - 422.66 747.40 858.63 119.49 0.41 5863 0.67 89.46 5726.73 860.49 - 422.53 749.71 860.58 119.41 0.04 6051 0.73 81.38 5914.72 862.37 - 422.34 752.00 862.48 119.32 0.06 6242 0.66 60.17 6105.70 863.86 - 421.61 754.15 864.01 119.21 0.14 6432 0.55 62.41 6295.69 864.89 - 420.65 755.91 865.07 119.09 0.06 1 6622 0.67 50.42 6485.68 865.76 - 419.51 757.58 865.98 118.98 0.09 6812 0.48 53.78 6675.67 866.46 - 418.34 759.07 866.72 118.86 0.10 7003 0.61 43.02 6866.66 867.01 - 417.12 760.41 867.31 118.75 0.09 7193 0.73 30.02 7056.65 867.23 - 415.33 761.71 867.58 118.60 0.10 7383 0.68 25.52 7246.64 867.13 - 413.27 762.80 867.56 118.45 0.04 7574 0.88 19.54 7437.62 866.76 - 410.86 763.78 867.28 118.28 0.11 7764 0.72 15.35 7627.60 866.18 - 408.34 764.58 866.79 118.11 0.09 7889 0.91 15.28 7752.59 865.73 - 406.62 765.05 866.40 117.99 0.15 8002 0.99 9.92 7865.57 865.15 - 404.79 765.46 865.90 117.87 0.11 *8055* 0.99 9.92 7918.56 864.84 - 403.89 765.62 865.62 117.81 0.00 *Projected* Ell EPOCH 20 • • 1 "Q" MARATHON OIL COMPANY KBU 11 -17X 4.2. MUD RECORD Contractor: MI Drilling Fluids Mud Types: Spud Mud 157' - 1608'; 3% KCI Flo-Pro 1608' - 8055' DATE MD / TVD MW VIS PV YP GELS FL FC SOL OIL /H20 SD MBT pH Alk CI- Ca+ 2/14/09 157 / 157 8.6 50 11 28 10/14/14 15.6 1 2.7 0/97 25.0 9.0 0.25 800 120 2/15/09 223 / 223 9.0 88 10 50 24/35/36 15.2 2 4.5 0/96 Tr 25.0 8.5 0.20 700 120 2/16/09 1100 / 1100 9.2 65 17 28 12/22/24 14.8 2 5.0 0/95 Tr 22.5 8.6 0.15 700 100 2/16/09 1588 / 1587 9.3 60 18 23 10/14/15 8.4 1 5.5 0/95 Tr 22.5 8.5 0.15 600 100 2/17/09 1588 / 1587 9.2 52 14 19 6/8/9 7.6 1 5.0 0/95 Tr 20.0 9.0 0.30 600 100 2/18/09 1588 / 1587 9.2 52 13 22 6/8/9 5.8 1 5.0 3/93 Tr 5.0 8.7 0.25 19000 120 2/19/09 1588 / 1587 9.0 54 16 19 7/10/11 6.2 1 4.5 3/93 Tr 5.0 8.5 0.15 19000 120 2/19/09 1900 / 1899 9.0 51 16 18 7/10/11 6.4 1 4.5 2/94 Tr 5.0 8.5 0.15 18000 100 2/20/09 2750 / 2730 9.0 52 9 28 8/12/14 6.7 1 4.5 2/94 Tr 4.0 9.5 0.40 19000 200 2/20/09 3455 / 3398 9.0 51 9 26 9/12/14 6.8 1 4.5 2/94 Tr 4.0 9.8 0.45 19000 240 2/21/09 4100 / 3997 9.1 50 11 21 10/14/15 7.2 1 4.5 2/94 Tr 6.0 9.3 0.30 17000 160 2/21/09 4720 / 4587 9.1 55 13 21 11/15/16 6.8 1 4.5 2/94 Tr 7.0 9.2 0.30 18000 160 2/22/09 5314 / 5178 9.2 55 12 24 11/14/15 7.4 1 5.0 3/93 Tr 6.0 9.0 0.30 19000 120 2/22/09 5600 / 5463 9.2 56 13 24 11/15/16 6.8 1 5.0 3/92 Tr 7.0 9.4 0.35 19000 200 2/23/09 5600 / 5463 9.4 55 12 25 11/14/15 6.8 1 6.0 3/91 Tr 7.0 9.4 0.40 19000 160 2/23/09 5600 / 5463 9.4 55 13 24 11/15/16 6.8 1 6.0 3/91 Tr 7.0 9.5 0.40 19000 160 2/24/09 5600 / 5463 9.4 57 14 23 11/14/15 6.8 1 6.0 3/91 Tr 8.0 9.3 0.25 19000 200 2/25/09 5600 / 5463 9.4 57 14 24 11/14/15 7.0 1 6.5 3/91 Tr 8.0 9.0 0.25 19000 200 2/26/09 6150 / 6014 9.5 56 14 24 11/15/16 7.0 1 7.0 3/90 Tr 8.0 9.3 0.40 19000 200 2/26/09 6925 / 6789 9.7 51 14 23 11/14/15 7.2 1 7.0 3/90 Tr 8.0 9.4 0.35 20000 200 2/27/09 7400 / 7264 9.8 55 16 25 10/14/15 6.2 1 9.0 3/88 Tr 8.0 9.4 0.40 20000 200 2/27/09 7935 / 7799 10.4 54 17 21 7/11/12 6.0 1 11.0 4/86 Tr 8.0 9.8 0.50 20000 200 2/28/09 8055 / 7918 10.5 55 16 25 8/11/12 6.0 1 11.0 4/86 0.33 8.0 9.9 0.45 20000 200 2/28/09 8055 / 7918 10.7 57 19 26 8/12/14 5.8 1 12.5 4/84 0.5 8.0 10.0 0.45 20000 200 3/01/09 8055 / 7918 10.8 55 18 19 7/11/12 5.8 1 13.5 4/83 0.33 8.0 10.0 0.50 19000 200 Ell EPOCH 21 • • • O ./ MARATHON OIL COMPANY KBU 11 -17X Contractor: MI Drilling Fluids Mud Type: 3% KCI Flo-Pro 1608' — 8055' DATE MD / TVD MW VIS PV YP GELS FL FC SOL OIL /H2O SD MBT pH Alk CI- Ca+ 3/02/09 8055 / 7918 10.9 56 18 20 7/11/12 5.8 1 13.0 3/84 0.33 8.0 9.7 0.45 19000 200 3/03/09 8055 / 7918 11.1 58 20 24 8/12/14 5.6 1 14.0 3/83 0.40 8.0 10.0 0.50 19000 200 3/04/09 8055 / 7918 11.0 58 19 22 8/11/12 5.8 1 14.0 3/83 0.33 8.0 9.6 0.45 19000 200 3/05/09 8055 / 7918 11.0 58 20 23 8/11/12 5.8 1 14.0 3/83 0.33 8.0 9.5 0.45 19000 200 3/05/09 8055 / 7918 8.5 28 1 1 KCL Brine 7.7 21000 El EPOCH 22 • • • M MARATHON OIL COMPANY KBU 11 -17X 4.3. 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 RR1 16" HTC MX -1 6065901 X 6, n/a n/a n/a n/a n/a n/a n/a n/a Drill out conductor only 1 16" HTC MX -1 6065901 3x16, 157 1588 1431 15.68 106.6 0.8— 7.3 — 72 216 — 975 — 2- 2- WT- A- E- 1 -SD -TD RR2 1 x18cj 25.9 1601 2 12.25 HCC 7013741 6x13 1588 5600 4012 45.36 88.5 0.6 — 12.0 — 78 450 — 895 — 1- 4- BT- G- X- 1 -CT -TD HCM506Z 45.1 1420 HCC 3x13, 0.4 — 7.5 — 1052 — 1777 3 8.5 HCM503ZX 7114328 3x14 5600 8055 2455 22.99 119.8 21.8 79 — 2245 0- 1- WT- S- X- 1 -NO -TD 4RR 8.5 HCC MX -1 6054215 Open 8055 8055 0 n/a n/a n/a n/a n/a NG Clean out run only El EPOCH 23 DEPTH (FT) • CD 0) - O) (31 - C+) N O CD CD O O CD CD O 0 0 0 CD O CD O O 0 CD O O O O O CD 0 0 O O 2/11/2009 •, 2/12/2009 • 2/13/2009 - • 2/14/2009 - O 2/15/2009 C) m 2/16/2009 c�i) C) 2/17/2009 - • 2/18/2009 - D 2/19/2009 - D 2/20/2009 - 0 Z 0 2/21/2009 0 n 0 r-�-1 ° 2/22/2009 D N z (2/23/2009 • m CO 2/24/2009 • N C x C m 2/25/2009 - -1 v S X 2/26/2009 - 2/27/2009 - 2/28/2009 - 3/1/2009 - 3/2/2009 f 0� N 0) 3/3/2009 _ o S - o S 0 3/4/2009 - m m 3/5/2009 - 3/6/2009 • Marathon a Company Kenai G EPOCH Kenai Gas Field DAILY WELLSITE REPORT El KBU 11 -17X REPORT FOR Rowland Lawson / Mitch Burns DATE Feb 11, 2009 DEPTH 157 PRESENT OPERATION Rig down and move from BC18 to KBU 11 -17X TIME 24:00 YESTERDAY 157 24 HOUR FOOTAGE 0 CASING INFORMATION 20" @ 157' SURVEY DATA DEPTH INCLINATION AZIMUTH VERTICAL DEPTH BIT INFORMATION INTERVAL CONDITION REASON NO. SIZE TYPE S/N JETS IN OUT FOOTAGE HOURS T /B /C PULLED DRILLING PARAMETERS HIGH LOW AVERAGE CURRENT AVG RATE OF PENETRATION @ @ FT /HR SURFACE TORQUE @ I AMPS WEIGHT ON BIT @ @ KLBS ROTARY RPM (d1 RPM PUMP PRESSURE ( PSI DRILLING MUD REPORT DEPTH MW VIS PV YP FL Gels CL- FC SOL SD OIL MBL pH Ca+ CC! 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 Proceed with rigging down, loading off and transporting all Glacier No.1 rig modules, rig equipment, contractor support trailers, communication equipment, camp living quarter trailers and camp accessory equipment to the Kenai Gas Field, and spotting all all items as per Marathon at KBU 11 -17X. Conduct comprehensive pre -job meeting with all hands on plan forward for craning down all rig components. Begin making preparations for craning. Rig down derrick board. Rig down dresser sleeves between pit room and pump room. Crane down back wind walls. Rig down gas buster. Lady down beaver slide and stairs above BOP conex. Remove hydraulic cylinder socks. Rig down choke line to poor boy degasser. Rig DAILY down mud lines and cement line. Blow down steam and wate lines. Finish steaming, cleaning and pumping out Hansen tank, and then load out to ACTIVITY be moved. Load out all miscellaneous equipment on available trailers. Crane down back windwalls. Prep derrick to scope down. Rig down service SUMMARY lines. Roll back, tie -up, secure and remove the carrier's cover tarps and then rig down the metal bows that act as tarp supports. Unplug choke house and dog house. Rig down driller's console. Suck off fuel. Finish prepping, and then scope down the derrick. Empty water tank. Rig down and move out Inteq and M -I trailers. Prep to lay down derrick. Unplug carrier lines. Crane out back floor plate. Load out BOP conex. Rig down service lines. Load out catwalk. Crane off choke house, off side driller's stairs and platform, flow line, gray iron, dog house, driller's side stairs and derrick house. Remove exterior lights. Chain derrick. Unplug cooling towers. Rig and load out fuel tank. Load out centrifuge module to be used at next well. EPOCH PERSONNEL ON BOARD 0 DAILY COST Holding: 350 REPORT BY Craig Silva • • Marathon a Company Kenai G EPOCH Kenai Gas Field DAILY WELLSITE REPORT El KBU 11 -17X REPORT FOR Rowland Lawson / Mitch Burns DATE Feb 12, 2009 DEPTH 157 PRESENT OPERATION Continue rig down - move -rig up operations from BC 18 to KBU 11 -17X TIME 24:00 YESTERDAY 157 24 HOUR FOOTAGE 0 CASING INFORMATION 20" @ 157' 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 @ @ 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 Continue rigging down, loading and transporting all Glacier No.1 rig modules, rig equipment, contractor support trailers, communication equipment, camp living quarter trailers and camp accessory equipment to the Kenai Gas Field, and then spotting and rigging up as per Marathon DAILY at KBU 11 -17X. Rig down brake linkage. Fold up wind walls. Remove tumbuckles on carrier and prep to move. Pull wires from generator to pump ACTIVITY room. Lay down hand rails on pits, pump room and generator house. Release rig to KBU 11 -7X location. Rig down and load out welding shop, SUMMARY epoch unit, mud boat, mud pits and pump room. Remove and load out trip tank. Load out BOP stack. Unfreeze sub base legs. Lower sub base and load out. Load out boiler house, generator house and water house. Rig down and load out all remaining camp trailers. Begin unloading, spotting, adjusting and rigging up all components of Glacier No.1 in final positions as they arrive at KBU 11 -17X. Rig up camp trailers. Fill up camp water. Continue unloading rig trailers. EPOCH PERSONNEL ON BOARD 0 DAILY COST Holding: 350 REPORT BY Craig Silva • • Marathon Oil Company Kenai Gas Field DAILY WELLSITE REPORT EPOCH KBU 11 -17X REPORT FOR Rowland Lawson / Mitch Bums DATE Feb 13, 2009 DEPTH 157 PRESENT OPERATION General rig up operations TIME 24:00 YESTERDAY 157 24 HOUR FOOTAGE 0 CASING INFORMATION 20" © 157' 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 © @ 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 General rig up operations as per Marathon of all Glacier No.1 rig modules, rig equipment, contractor support trailers, communication equipment, camp living quarter trailers and camp accessory equipment at KBU 11 -17X. Spot and level carrier. Pull wires from pump room to generator house. Install turnbuckles and prepare to raise derrick. Run water line to rig and fill water tank. Crane up derrick house. Raise derrick. Set fuel tank. Set DAILY wind walls on carrier. Crane in and set in place the gray iron, stairs on drillers side, landings, choke house, dog house, flowline and gas buster. ACTIVITY Spot shock hose for pumps. Rig up pop off. Take on rig fuel. Rig up welding shop. Rig up dresser sleeves. Crane up v- doors. Rig up service line. SUMMARY Crane in and set in place the off side stairs, panic line, floor plate, back wind walls, cuttings tank, storage house and central module. Begin working on central module. Plug in carrier, doghouse and chokehouse. Fill boiler and start pre- heating. Rig up and make up u -tube and chokeline to degasser. Continue unloading trailers. Scope derrick up. Install metal bows and tarps on carrier. Rig up utility lines. Prep and rig driller's console, Set matting boards for pump #3 module. Set all oil products in place. Install beaver slide and BOP conex stairs. Dress #1 and #2 mud pumps. Dress shakers with starting (size 165) screens. Install mud pump pop -offs. Continue working on central module. Supply steam to rig. EPOCH PERSONNEL ON BOARD 0 DAILY COST Holding: 350 REPORT BY Craig Silva • • Marathon a Company Kenai G EPOCH Kenai Gas Field DAILY WELLSITE REPORT Ell KBU 11 -17X REPORT FOR Rowland Lawson / Mitch Burns DATE Feb 14, 2009 DEPTH 157 PRESENT OPERATION General rig up operations TIME 24:00 YESTERDAY 157 24 HOUR FOOTAGE 0 CASING INFORMATION 20" © 157' 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 157 / 157 TVD MW 8.6 VIS 50 PV 11 YP 28 FL 15.6 Gels 10/14/14 CL- 800 FC 1 SOL 2.7 SD 0 OIL 0/97 MBL 25.0 pH 9.0 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 PENTANE (C -5) @ @ HYDROCARBON SHOWS INTERVAL LITHOLOGY /REMARKS GAS DESCRIPTION LITHOLOGY PRESENT LITHOLOGY Continue general rig up operations at KBU 11 -17X. Rig up shock hoses. Install tarps on derrick base and cylinder socks. Set cellar grating in place. Install manual trip tank gauge. Prep, pick up, make up and hang torque tube. Install T -bar and turnbuckles for torque tube. Tighten bolts and adjust tumbuckles to secure in place. Circulate water and air throughout rig. Plumb on lines to central module. Pick up slide and Topdrive. Hang DAILY Topdrive and install slide. Rig up Topdrive service loop and kelly hose. Change saver sub and grabber dies. Install bails and elevators. Set #3 ACTIVITY pump house in place. Rig up and make up pop -off, suction line and service lines for pump #3. Rig up manual drill pipe tongs. Rig up pipe spinner. MV VD Spot Epoch logging unit and Inteq MD unit in place. Test run Topdrive and #1 and #2 mud pumps. Pick up and on drill floor the drill pipe slips, subs rack and drill pipe safety valves. Rig up derrick board. Begin thawing out cellar. Install choke line. Rig up bleeder lines. Troubleshoot and repair carrier engine #1 transmission shifter. Set in place and connect up accumulator lines to sub base. Begin mixing spud mud. Finish thawing out cellar. Cut and dress 20" conductor. Weld 2" nipple for for kill line. Install starter head and test to 500psi for 10 minutes. Nipple up diverter stack. Rig up kill line and flowline adaptor. 1 EPOCH PERSONNEL ON BOARD 1 DAILY COST Rig up: 2925 ML: 1485 RW: 635 REPORT BY Craig Silva • • Marathon Oil Company Li Kenai Gas Field DAILY WELLSITE REPORT EPOCH KBU 11 -17X REPORT FOR Rowland Lawson / Mitch Bums DATE Feb 15, 2009 DEPTH 391 PRESENT OPERATION Drilling TIME 24:00 YESTERDAY 157 24 HOUR FOOTAGE 234 CASING INFORMATION 20" @ 157' DEPTH INCLINATION AZIMUTH VERTICAL DEPTH SURVEY DATA 214 0.48 325.98 214.00 335 0.62 343.02 334.99 BIT INFORMATION INTERVAL CONDITION REASON NO. SIZE TYPE S/N JETS IN OUT FOOTAGE HOURS T /B /C PULLED 1RR2 16.0 HCC MX -1 6065901 3x16 1x18cj 157 234 3.37 In Hole DRILLING PARAMETERS HIGH LOW AVERAGE CURRENT AVG RATE OF PENETRATION 440.6 @ 182 12.0 @ 204 99.0 81.3 FT /HR SURFACE TORQUE 3952 @ 229 1997 @ 192 2592.4 2975.4 AMPS WEIGHT ON BIT 14 @ 208 1 @ 234 6.0 11.0 KLBS ROTARY RPM 56 @ 310 49 @ 328 53.5 51.7 RPM PUMP PRESSURE 803 @ 357 216 @ 192 601.5 717.7 PSI DRILLING MUD REPORT DEPTH 224 / 224 TVD MW 9.0 VIS 88 PV 10 YP 50 FL 15.2 Gels 24/35/36 CL- 700 FC 2 SOL 4.5 SD Tr OIL 0/96 MBL 25.0 pH 8.5 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 PENTANE (C -5) @ @ HYDROCARBON SHOWS INTERVAL LITHOLOGY /REMARKS GAS DESCRIPTION LITHOLOGY PRESENT LITHOLOGY Continue pre -spud rig up operations. Nipple up bell nipple. Rig up fill -up line, bleeder line, trip tank lines and flow lines. Rig up and tighten turnbuckles to stack. Install knife valve. Install accumulator lines. Install and chain downl6" diverter line. Finish mixing spud mud. Set pipe racks. Function test diverter system. Perform accumulator drawdown test. Pick up and make up 16" bit and bit sub with float to clean out conductor. Run in hole with 5" drill pipe and tag at 22'. Break circulation. Clean out conductor from 22' to 65'. Pull out of hole and lay down bit and bit sub. Prepare DAILY to pick up 5" drill pipe on the rack. Pick up, make up and rack back in derrick 52 joints (26 stands) of 5" drill pipe. Pick up, make up and rack back ACTIVITY in derrick 21 joints of 5" HWDP with a set of 6 3/4" jars (11 stands). Pick up, make up and run in hole partial directional assembly (16" bit, X -treme SUMMARY motor, NM stabilizer, pony NMDC, crossover). Run in hole with 5" HWDP and tag fill at 65'. Break circulation. Clean out conductor from 65' to its base at 157'. Spud Well when drilling out of conductor. Drill from 157' to 223'. Circulate bottoms up and circulate hole clean. Pull out of hole to 35', standing back HWDP. Pick up, make up and run in hole with added directional assembly (NM crossover sub, MWD, UPA sub, MN filter sub, NM crossover sub, 2 CSNMDPs, crossover) to 140'. Continue running in hole with 5" HWDP out of derrick and tag bottom at 223'. Drill from 223' to 391'. EPOCH PERSONNEL ON BOARD 2 DAILY COST ML: 2600 RW: 635 REPORT BY Craig Silva • • Marathon Oil Company Kenai Gas Field DAILY WELLSITE REPORT EPOCH KBU 11 -17X REPORT FOR Rowland Lawson / Mitch Burns DATE Feb 16, 2009 DEPTH 1588 PRESENT OPERATION Wiper Trip TIME 24:00 YESTERDAY 391 24 HOUR FOOTAGE 1197 CASING INFORMATION 20" @ 157' DEPTH INCLINATION AZIMUTH VERTICAL DEPTH 454 0.87 334.08 453.98 696 1.17 079.22 695.94 SURVEY DATA 945 1.15 090.18 944.89 1325 2.52 138.12 1324.65 1530 1.70 130.67 1529.47 BIT INFORMATION INTERVAL CONDITION REASON NO. SIZE TYPE S/N JETS IN OUT FOOTAGE HOURS T /B /C PULLED 1RR2 16.0 HCC MX -1 6065901 3x16 1x18cj 157 1588 1432 15.68 In Hole DRILLING PARAMETERS HIGH LOW AVERAGE CURRENT AVG RATE OF PENETRATION 187.9 @ 862 9.9 © 1182 108.2 55.8 FT /HR SURFACE TORQUE 5344 @ 963 0 @ Sliding 3302.6 3519.1 AMPS WEIGHT ON BIT 25 @ 791 0 @ 1337 7.5 8.1 KLBS ROTARY RPM 81 @ 1213 0 @ Sliding 73.3 77.7 RPM PUMP PRESSURE 1601 @ 857 672 @ 451 1048.6 895.1 PSI DRILLING MUD REPORT DEPTH 1588 / 1587 TVD MW 9.3 VIS 60 PV 18 YP 23 FL 8.4 Gels 10/14/15 CL- 600 FC 1 SOL 5.5 SD Tr OIL 0/95 MBL 22.5 pH 8.5 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 DAILY Drill (rotating and sliding) from 391' to 1588'. Circulate bottoms up. Pump around 40 bbl HI -Vis sweep with nut plug. Circulate another bottoms ACTIVITY up and continue until shakers are clean. Pull out of hole (SLM, with no correction) from 1588' to 150' on wiper trip to conductor shoe. (Hole is SUMMARY slick coming out). Run back in hole from 150' to 1570' (with no ledges). Wash down from 1570' to bottom at 1588' (with no fill). Circulate bottoms up. Pump around 40 bbl HI -Vis sweep with nutplug. Circulate until shakers are clean. Monitor well (static). Pump dry job. EPOCH PERSONNEL ON BOARD 1 DAILY COST ML: 1485 RW: 635 REPORT BY Craig Silva • • Marathon a Company Kenai G EPOCH Kenai Gas Field DAILY WELLSITE REPORT Ell KBU 11 -17X REPORT FOR Rowland Lawson / Mitch Bums DATE Feb 17, 2009 DEPTH 1588 PRESENT OPERATION Nippling down after cementing 13 3/8" surface casing TIME 24:00 YESTERDAY 1588 24 HOUR FOOTAGE 0 CASING INFORMATION 13 3/8" © 1576' DEPTH INCLINATION AZIMUTH VERTICAL DEPTH SURVEY DATA 1588 (Projection) 1.70 130.67 1587.45 BIT INFORMATION INTERVAL CONDITION REASON NO. SIZE TYPE S/N JETS IN OUT FOOTAGE HOURS T /B /C PULLED 1RR2 16.0 HCC MX -1 6065901 3x16 1x18cj 157 1588 1431 15.68 2- 2- W1 A- E- 1 -SD -TD Surface csg point DRILLING PARAMETERS HIGH LOW AVERAGE CURRENT AVG RATE OF PENETRATION @ @ FT /HR SURFACE TORQUE @ @ AMPS WEIGHT ON BIT @ @ KLBS ROTARY RPM @ @ RPM PUMP PRESSURE @ @ PSI DRILLING MUD REPORT DEPTH 1588 / 1587 TVD MW 9.2 VIS 52 PV 14 YP 19 FL 7.6 Gels 6/8/9 CL- 600 FC 1 SOL 5 0 SD Tr OIL 0/95 MBL 20.0 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 DESCRIPTION LITHOLOGY PRESENT LITHOLOGY Pull out of hole with 5" drill pipe from 1588' to 813'. Pull out of hole standing back 5" HWDP and jars to 154'. (Hole slick on way out). Pull, break and lay down directional assembly (crossover, 2 NMCSDPs, MN crossover, NM filter sub, UPA sub, MVO, NM crossover, pony NMDC, NM stabilizer, motor, bit). Inspect and grade bit. (Note seals in cone #3 still effective but not tight). Blow down mud lines. Clear and clean rig floor. Prepare and rig up 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 drillers side and install correct tong head. Install fill -up line. Install casing elevators. Rig down pipe spinner. Rig up casing tongs. Change out from short to tall snub post. 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 land at 1576' (with float collar at 1536'). Note slick casing run without tagging fill. Land casing out on base plate. Rig down and load off all Weatherford casing running equipment. Rig down fill up line. Clear rig floor. Change out bails, elevators, tongs and snubbing post to handle and run 5" drill DAILY 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 ACTIVITY running 5" drill pipe inside 13 3/8" casing. Run in hole with 5" drill pipe to top of float collar at 1536'. Tag and sting into float collar and space out. Circulate and SUMMARY condition hole (1 1/2 casing volumes). Pump 250 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 3.0 bbls of water to fill cement lines. Pressure test to 2543psi. Bleed off pressure. Batch cement to I 12.Oppg. Pump 181.0 bbls of 12.0ppg cement slurry (410 sacks Type I LW-6 cement and accelerator additives to 100.8 bbls of mix water for 10.328 gal water /sack and yield of 2.483 cu ft per sack). Pump cement slurry and then follow with 23.0 bbls of 9.2ppg mud to displace. No losses during pumping with 29 bbls good excess cement returns back to surface. 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 from 1536' to 1460' (while laying down 2 pups and 2 singles of 5" drill pipe) 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 traces of cement product. Dump returns during and after pumping ball Finish pumping. Flush stack and mud lines with retarded water. Rig up false rotary table and pull out of hole with 5" drill pipe from 1460' to surface. Break and lay down stab -in assembly (5' pup, stab -in tool, centralizer). 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 at mud lines. Pull plate. Clear, clean and organize rig floor and cellar. Wait on cement. Change oil in carrier #2 engine. Rinse Hanson tank. • EPOCH PERSONNEL ON BOARD 1 DAILY COST ML: 1485 RW 635 REPORT BY Craig Silva • Marathon Oil Company Kenai Gas Field DAILY WELLSITE REPORT EPOCH KBU 11 -17X REPORT FOR Rowland Lawson / Dan Byrd DATE Feb 18, 2009 DEPTH 1588 PRESENT OPERATION Completing pressure test of 13 3/8" casing TIME 24:00 YESTERDAY 1588 24 HOUR FOOTAGE 0 CASING INFORMATION 13 3/8" @ 1576' 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 1588 / 1587 TVD MW 9.2 VIS 52 PV 13 YP 22 FL 5.8 Gels 6/8/9 CL- 19000 FC 1 SOL 5.0 SD Tr OIL 3/93 MBL 5.0 pH 8.7 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 PENTANE (C -5) @ @ HYDROCARBON SHOWS INTERVAL LITHOLOGY /REMARKS GAS DESCRIPTION LITHOLOGY PRESENT LITHOLOGY Prep diverter for nipple down. 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 stub section. Change oil in carrier engine #1. Remove and lay down mousehole. Nipple down and rig down flow line, flow line extension, kill line, 2" valve, accumulator lines, bell nipple and scaffolding. Finish cleaning the pits. 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 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 1500psi for 10 minutes. Nipple down single gate. Change out and shim clutch DAILY discs and friction plates on drawworks clutch. Fill pits land 2 with used 9.5 Flo -Pro mud from storage tanks. Clean up and de -ice around sub -base ACTIVITY 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" SUMMARY spacer spool. Install flowline extension. Nipple up 13 5/8" 5M BOP stack. Nipple up kill and choke lines. Complete electrical and plumbing work on centrifuge. Repair flowline adapter. 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 tumbuckles to stack. 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. Test all other BOPE to 250psi Low / 3000psi High for 5 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). Run centrifuge while testing BOPE to reduce MW from 9.5ppg to 9.1ppg. Begin loading and strapping 5" drill pipe on pipe racks. 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. EPOCH PERSONNEL ON BOARD 2 DAILY COST ML: 2600 RW: 635 • REPORT BY Craig Silva • Marathon a Company Kenai G EPOCH Kenai Gas Field DAILY WELLSITE REPORT PI KBU 11 -17X REPORT FOR Rowland Lawson / Dan Byrd DATE Feb 19, 2009 DEPTH 2019 PRESENT OPERATION Drilling TIME 24:00 YESTERDAY 1588 24 HOUR FOOTAGE 431 CASING INFORMATION 13 3/8" @ 1576' DEPTH INCLINATION AZIMUTH VERTICAL DEPTH 1626 1.62 128.51 1625.43 SURVEY DATA 1813 1.71 126.73 1812.35 1940 2.09 129.97 1939.28 2069 2.29 128.83 2068.19 BIT INFORMATION INTERVAL CONDITION REASON NO. SIZE TYPE S/N JETS IN OUT FOOTAGE HOURS T /B /C PULLED 2 12.25 HCC HCM506Z 7013741 6x13 1588 431 4.67 In Hole DRILLING PARAMETERS HIGH LOW AVERAGE CURRENT AVG RATE OF PENETRATION 288.8 @ 1628 12.1 @ 1850 108.0 148.3 FT /HR SURFACE TORQUE 5163 @ 1806 2451 @ 1606 3477.6 3357.3 AMPS WEIGHT ON BIT 17.2 @ 1909 0.6 @ 1769 5.4 6.6 KLBS ROTARY RPM 83 @ 1825 31 @ 1805 63.7 67.5 RPM PUMP PRESSURE 859 @ 1621 450 @ 1812 648.8 691.6 PSI DRILLING MUD REPORT DEPTH 1900 / 1899 TVD MW 9.0 VIS 51 PV 16 YP 18 FL 6.4 Gels • 7/10/11 CL- 18000 FC 1 SOL 4.5 SD Tr OIL 2/94 MBL 5.0 pH 8.5 Ca+ 100 CCI • MWD SUMMARY INTERVAL TO TOOLS GAS SUMMARY (units) HIGH LOW AVERAGE DITCH GAS 15 @ 1942 0 @ 1589 9.6 TRIP GAS CUTTING GAS @ @ WIPER GAS CHROMATOGRAPHY (ppm) SURVEY METHANE (C -1) 3005 @ 1942 109 @ 1589 1906.3 CONNECTION GAS HIGH ETHANE (C -2) @ @ AVG PROPANE (C -3) @ @ CURRENT BUTANE (C -4) @ @ CURRENT BACKGROUND /AVG 1 / 10 PENTANE (C -5) @ @ HYDROCARBON SHOWS INTERVAL LITHOLOGY /REMARKS GAS DESCRIPTI ON LITHOLOGY PRESENT LITHOLOGY Rig down test equipment. Blow down Topdrive, choke and mud lines. Slip 33' of drill line onto drum. Reset crown -o- matic. Service rig and equipment. Grease crown. Install elevators. Pick up and prepare pipe handling tools on rig floor. Pick up joints of 5" drill pipe off the pipe racks, drift, make up, run in hole, and then pull out racking back and strapping as stands in the derrick. Note 108 joints (54 stands) total of 5" drill pipe are added to the drill string. Clean rig floor. Lay out lower directional assembly on catwalk and remove snow from tools. Pick up, make up and run in DAILY hole new directional assembly (bit, motor, NM stabilizer, pony NMDC, NM crossover, MWD, UPA sub, NM filter sub, NM crossover, 2 NMCSDPs, ACTIVITY crossover) to 140'. Orient and scribe MWD tools and dress threads on crossovers while running in. Continue running in hole with 5" HWDP to 797'. MV VD. Break circulation and surface test MD. Continue running in hole with 5" drill pipe from 797' to 1429'. Install corrosion ring in next stand of 5" drill pipe to be added to string. Wash down from 1429' to 1529' and tag cement. Clean out cement and tag float collar at 1536'. Drill out and clean out float equipment and remaining shoe tract (cement, shoe at 1576', 12' of rathole) to 1588'. Note that spud mud is displaced on the fly with treated and centrifuge- cleaned reconstituted Flo -Pro mud while drilling out the shoe tract. Drill 20' of new hole from 1588' to 1608'. Circulate bottoms up. Pump around Hi -Vis sweep to clean hole. Cease pumping. Perform Formation Integrity Test to 12.Oppg EMW. Drill ahead with mud loss over shakers. Build mud volume while drilling. Drill from 1608' to 2019'. EPOCH PERSONNEL ON BOARD 2 DAILY COST ML: 2600 RW: 635 • REPORT BY Craig Silva • Marathon Oil Company Kenai EPOCH Kenai Gas Field DAILY WELLSITE REPORT KBU 11 -17X REPORT FOR Rowland Lawson / Dan Byrd DATE Feb 20, 2009 DEPTH 3643 PRESENT OPERATION Circulating hole clean before wiper trip to shoe TIME 24:00 YESTERDAY 2019 24 HOUR FOOTAGE 1624 CASING INFORMATION 13 3/8" @ 1576' DEPTH INCLINATION AZIMUTH VERTICAL DEPTH 2196 2.47 130.11 3195.08 2513 8.98 132.42 2510.49 SURVEY DATA 2892 18.46 118.93 2877.86 3272 24.27 117.92 3231.81 3586 23.69 117.69 3518.05 BIT INFORMATION INTERVAL CONDITION REASON NO. SIZE TYPE S/N JETS IN OUT FOOTAGE HOURS T /B /C PULLED 2 12.25 HCC HCM506Z 7013741 6x13 1588 2055 19.63 In Hole DRILLING PARAMETERS HIGH LOW AVERAGE CURRENT AVG RATE OF PENETRATION 183.2 @ 2285 18.2 @ 2357 118.0 108.8 FT /HR SURFACE TORQUE 7499 @ 3406 0 @ Sliding 3556.2 5525.7 AMPS WEIGHT ON BIT 29.7 @ 2725 1.2 @ 2977 9.2 8.7 KLBS ROTARY RPM 83 @ 2314 0 @ Sliding 40.8 57.7 RPM PUMP PRESSURE 1184 @ 2663 629 @ 2089 789.7 774.7 PSI DRILLING MUD REPORT DEPTH 3455 / 3398 TVD MW 9.0 VIS 51 PV 9 YP 26 FL 6.8 Gels 9/12/14 CL- 19000 FC 1 SOL 4.5 SD Tr OIL 2/94 MBL 4.0 pH 9.8 Ca+ 240 CCI • MWD SUMMARY INTERVAL TO TOOLS GAS SUMMARY (units) HIGH LOW AVERAGE DITCH GAS 17 @ 3560 1 @ 2699 9.3 TRIP GAS CUTTING GAS @ @ WIPER GAS CHROMATOGRAPHY(ppm) SURVEY METHANE (C -1) 3552 @ 3560 262 @ 2671 1851.8 CONNECTION GAS HIGH ETHANE (C -2) @ @ AVG PROPANE (C -3) @ @ CURRENT BUTANE (C -4) @ © CURRENT BACKGROUND /AVG 2 / 12 PENTANE (C -5) @ @ HYDROCARBON SHOWS INTERVAL LITHOLOGY /REMARKS GAS DESCRIPTION LITHOLOGY PRESENT LITHOLOGY DAILY ACTIVITY SUMMARY Drill (rotating and sliding) from 2019' to 3643'. Circulate bottoms up. Pump around 40 bbl Hi -Vis sweep. Circulate hole clean. EPOCH PERSONNEL ON BOARD 2 DAILY COST ML: 2600 RW: 635 REPORT BY Craig Silva • Marathon Oil Company EPOCH Kenai Gas Field DAILY WELLSITE REPORT Ell KBU 11 -17X REPORT FOR Rowland Lawson / Dan Byrd DATE Feb 21, 2009 DEPTH 4870 PRESENT OPERATION Drilling TIME 24:00 YESTERDAY 3643 24 HOUR FOOTAGE 1227 CASING INFORMATION 13 3/8" © 1576' DEPTH INCLINATION AZIMUTH VERTICAL DEPTH 3650 23.59 118.34 3576.68 3965 21.84 117.97 3865.92 SURVEY DATA 4282 18.21 122.46 4163.77 4599 13.30 117.94 4468.86 4917 7.09 114.47 4781.67 BIT INFORMATION INTERVAL CONDITION REASON NO. SIZE TYPE S/N JETS IN OUT FOOTAGE HOURS T /B /C PULLED 2 12.25 HCC HCM506Z 7013741 6x13 1588 3282 32.87 In Hole DRILLING PARAMETERS HIGH LOW AVERAGE CURRENT AVG RATE OF PENETRATION 205.1 @ 3646 16.9 @ 4293 107.7 84.2 FT /HR SURFACE TORQUE 10548 @ 4810 0 @ Sliding 5360.9 755.2 AMPS WEIGHT ON BIT 31.9 @ 4408 1.1 @ 4466 12.6 27.7 KLBS ROTARY RPM 84 © 3887 0 @ Sliding 78.1 80.0 RPM PUMP PRESSURE 1244 @ 4765 764 @ 3644 973.8 1015.5 PSI DRILLING MUD REPORT DEPTH 4720 / 4587 TVD MW 9.1 VIS 55 PV 13 YP 21 FL 6.8 Gels 11/15/16 CL- 18000 • FC 1 SOL 4.5 SD Tr OIL 2/94 MBL 7.0 pH 9.2 Ca+ 160 CCI MWD SUMMARY INTERVAL TO TOOLS GAS SUMMARY (units) HIGH LOW AVERAGE DITCH GAS 69 @ 4332 6 @ 4087 26.1 TRIP GAS CUTTING GAS @ @ WIPER GAS 5 CHROMATOGRAPHY (ppm) SURVEY METHANE (C -1) 13884 @ 4332 1238 @ 4087 5213.9 CONNECTION GAS HIGH ETHANE (C -2) @ @ AVG PROPANE (C -3) @ @ CURRENT BUTANE (C -4) @ @ CURRENT BACKGROUND /AVG 6 / 19 PENTANE (C -5) @ @ HYDROCARBON SHOWS INTERVAL LITHOLOGY /REMARKS GAS DESCRIPTION LITHOLOGY PRESENT LITHOLOGY DAILY Build dry job while circulating hole clean. Check for flow. Prepare for wiper trip to 13 3/8" shoe. Pull out of hole from 3643' to 3328'. Pump dry ACTIVITY job. Continue pulling of hole from 3328' to 1521' (inside shoe). Blow down. Service rig and Topdrive. Change gear lube oil in right angle drive. SUMMARY Fix leak at red tugger diverter valve. Run back in hole from 1521' to 3580'. Wash down from 3580' to bottom at 3643'. Drill (sliding and rotating) from 3643' to 4870'. EPOCH PERSONNEL ON BOARD 2 DAILY COST ML: 2600 RW: 635 REPORT BY Craig Silva • • Marathon Company Kenai G EPOCH Kenai Gas Field DAILY WELLSITE REPORT KBU 11 -17X REPORT FOR Rowland Lawson / Dan Byrd DATE Feb 22, 2009 DEPTH 5600 PRESENT OPERATION Pulling out of hole on wiper trip to shoe TIME 24:00 YESTERDAY 4870 24 HOUR FOOTAGE 730 CASING INFORMATION 13 3/8" @ 1576' DEPTH INCLINATION AZIMUTH VERTICAL DEPTH 4980 5.59 118.04 4844.28 5107 2.58 113.16 4970.93 SURVEY DATA 5234 1.57 101.27 5097.86 5424 1.33 093.89 5287.80 5543 1.20 100.61 5406.77 BIT INFORMATION INTERVAL CONDITION REASON NO. SIZE TYPE S/N JETS IN OUT FOOTAGE HOURS T /B /C PULLED 2 12.25 HCC HCM506Z 7013741 6x13 1588 4012 45.36 In Hole DRILLING PARAMETERS HIGH LOW AVERAGE CURRENT AVG RATE OF PENETRATION 167.8 @ 5547 10.6 @ 5108 72.6 77.7 FT /HR SURFACE TORQUE 11085 @ 5017 0 @ Sliding 6609.8 8321.9 AMPS WEIGHT ON BIT 45.1 @ 5239 2.0 @ 5441 20.3 12.7 KLBS ROTARY RPM 83 @ 5385 0 @ Sliding 78.7 72.0 RPM PUMP PRESSURE 1420 @ 5328 872 @ 4914 1142.7 1173.4 PSI DRILLING MUD REPORT DEPTH 5600 / 5463 TVD MW 9.2 VIS 56 PV 13 YP 24 FL 6.8 Gels 11/15/16 CL- 19000 FC 1 SOL 5.0 SD Tr OIL 3/92 MBL 7.0 pH 9.4 Ca+ 200 CCI III MWD SUMMARY INTERVAL TO TOOLS GAS SUMMARY (units) HIGH LOW AVERAGE DITCH GAS 96 © 5031 3 @ 5541 24.0 TRIP GAS CUTTING GAS @ @ WIPER GAS CHROMATOGRAPHY(ppm) SURVEY METHANE (C -1) 19325 @ 5031 674 @ 5541 4800.1 CONNECTION GAS HIGH ETHANE (C -2) 8 @ 5032 0 @ 0.5 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 DAILY ACTIVITY Drill (sliding and rotating) from 4870' to 5500'. Circulate bottoms up and continue to circulate and clean hole until Marathon geologist has SUMMARY finished evaluating mudlog. Drill ahead from 5500' to intermediate casing point at 5600'. Circulate bottoms up. Pump around H -Vis sweep. Circulate hole clean. Check for flow. Pull out of hole from 5600' (to 3139') on wiper trip to shoe. EPOCH PERSONNEL ON BOARD 2 DAILY COST ML: 2600 RW: 635 REPORT BY Craig Silva III Marathon Oil Company • Kenai Gas Field DAILY WELLSITE REPORT EPOCH KBU 11 -17X REPORT FOR Rowland Lawson / Dan Byrd DATE Feb 23, 2009 DEPTH 5600 PRESENT OPERATION Advance procedures for running 9 5/8" casing TIME 24:00 YESTERDAY 5600 24 HOUR FOOTAGE 0 CASING INFORMATION 13 3/8" © 1576' DEPTH INCLINATION AZIMUTH VERTICAL DEPTH SURVEY DATA 5600 (Projection) 1.20 100.61 5463.75 BIT INFORMATION INTERVAL CONDITION REASON NO. SIZE TYPE S/N JETS IN OUT FOOTAGE HOURS T /B /C PULLED 2 12.25 HCC HCM506Z 7013741 6x13 1588 5600 4012 45.36 1- 4- BT- G- X- 1 -CT -TD Casing point DRILLING PARAMETERS HIGH LOW AVERAGE CURRENT AVG RATE OF PENETRATION @ @ FT /HR SURFACE TORQUE @ @ AMPS WEIGHT ON BIT @ KLBS ROTARY RPM @ @ RPM PUMP PRESSURE @ @ PSI DRILLING MUD REPORT DEPTH 5600 / 5463 TVD MW 9.4 VIS 55 PV 13 YP 24 FL 6.8 Gels 11/15/16 CL- 19000 FC 1 SOL 6.0 SD Tr OIL 3/91 MBL 7.0 pH 9.4 Ca+ 160 CCI MWD SUMMARY INTERVAL TO TOOLS • GAS SUMMARY (units) HIGH LOW AVERAGE DITCH GAS 42 @ 5600 (first WG) 1 @ 5600 (last circ before POH) 3 (2nd wiper trip) TRIP GAS CUTTING GAS @ @ WIPER GAS 42 (1st), 6 (2nd) CHROMATOGRAPHY (ppm) SURVEY METHANE (C -1) @ @ CONNECTION GAS HIGH ETHANE (C -2) @ @ AVG PROPANE (C -3) @ @ CURRENT BUTANE (C-4) @ @ CURRENT BACKGROUND /AVG N/A PENTANE (C -5) @ @ HYDROCARBON SHOWS INTERVAL LITHOLOGY /REMARKS GAS DESCRIPTI ON LITHOLOGY PRESENT LITHOLOGY Continue pulling out hole (from 3139') on wiper trip to 1551' (just inside 13 3/8" casing shoe). Service rig and Topdrive. Run back in hole from 1551' and tag tight spot at 3719'. Pull to 3706' (connection point). Break circulation and fill pipe. Wash down from 3706' to 3770'. Continue running in hole from 3770' and tag tight spot at 5439'. Pull to 5417' (connection point). Break circulation and fill pipe. Wash down from 5417' to bottom at 5600' (with no fill). Circulate bottoms up. Pump around Hi -Vis sweep. Record 42 units of wiper gas. Circulate sweep around and continue to circulate and clean hole until shakers clean. (33672 strokes total, 2 -plus bottoms up). Begin pulling out of hole from 5600'. (Record tight spots at 5490', 5473', 5448', 5385', 5381', 5375', 5365', 5340', 5296', 5289', 5249', 5233', 5044', 4981', 4759'). Continue pulling out of hole to 4400' (past top DAILY of Beluga Formation). Perform second wiper trip. Run back in hole from 4400' to 5543'. Break circulation and wash down from 5543' to bottom at ACTIVITY 5600' (with no fill). Circulate bottoms up. Pump around Hi -Vis sweep with LCM added. Record 6 units of wiper gas. Circulate sweep around and SUMMARY continue to circulate and clean hole until shakers clean. (29740 strokes total, 2 bottoms up). Pull (1 1/2 joints and 10 full stands) 5" drill pipe out of the hole (SLM) from 5600' to 4910'. Pump dry job. Continue pulling 5" drill pipe out of hole (SLM, with no correction) from 4910' to top of 5" HWDP at 797'. Pull out of hole standing back 5" HWDP and jars to 140'. (Note that hole was slick all the way out). 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. Using single joint elevators, 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. Close blind rams. EPOCH PERSONNEL ON BOARD 2 DAILY COST ML: 2600 RW: 635 REPORT BY Craig Silva 41110 Marathon a Company Kenai G EPOCH Kenai Gas Field DAILY WELLSITE REPORT El KBU 11 -17X REPORT FOR Rowland Lawson / Dan Byrd DATE Feb 24, 2009 DEPTH 5600 PRESENT OPERATION Blowing down and cleaning up after cementing 9 5/8" casing TIME 24:00 YESTERDAY 5600 24 HOUR FOOTAGE 0 CASING INFORMATION 9 5/8" @ 5585' SURVEY DATA DEPTH INCLINATION AZIMUTH VERTICAL DEPTH BIT INFORMATION INTERVAL CONDITION REASON NO. SIZE TYPE S/N JETS IN OUT FOOTAGE HOURS T /B /C PULLED DRILLING PARAMETERS HIGH LOW AVERAGE CURRENT AVG RATE OF PENETRATION @ @ FT /HR SURFACE TORQUE @ @ AMPS WEIGHT ON BIT @ © KLBS ROTARY RPM @ @ RPM PUMP PRESSURE @ @ PSI DRILLING MUD REPORT DEPTH 5600 / 5463 TVD MW 9.4 VIS 57 PV 14 YP 23 FL 6.8 Gels 11/14/15 CL- 19000 FC 1 SOL 6.0 SD Tr OIL 3/91 MBL 8.0 pH 93 Ca+ 200 CCI MWD SUMMARY INTERVAL TO TOOLS GAS SUMMARY (units) HIGH LOW AVERAGE DITCH GAS 6 @ Circ before landing hanger 0 @ filling pipe running in Csg 3 while washing down TRIP GAS 4 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 Change out top set variable pipe rams to 9 5/8" casing rams. Run in test plug, rig up test equipment and test 9 5/8" rams to 250psi Low / 3000psi High for 5 minutes. Rig down test equipment and pull test plug. Change out 2 control solenoids on off driller's side manrider. 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. Move torque tube back in derrick for clearance. Pick up 350 -ton casing elevators. Rig up Weatherford casing (power) tongs and tall snub post. Remove rotary bushings. Rig up casing spider slips. Rig up and function stabbing board. 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 and record in IADC. Pick up centralizers and lock rings and stage on rig floor. Tie one (red) tugger line back in derrick for picking up pipe, and the second (blue) tugger line back for hanging casing tongs. Hold pre -job meeting with 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 and 1 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 1563' (just inside 13 3/8" shoe). Break circulation, fill pipe and circulate bottoms up. Record 1 unit maximum gas. Hold second meeting with Weatherford and DAILY all hands at crew change on procedures and safety for running intermediate casing string. Continue running 9 5/8" casing in hole from 1563' to 5554'. Break ACTIVITY circulation and wash down from 5554' to landing depth of 5585'. Record 6 units maximum gas while washing down. Land hanger on load shoulder in multi -bowl SUMMARY wellhead (at 5585 91'). Drain stack and verify landing. Continue to circulate and condition mud prior to cement job. Transfer 100 bbls of mud over to Hanson tank. Note that mud is treated with citric and bicarbonate prior to cement job. Circulate bottoms up and record 4 units of trip gas. 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. Stage cementing head with top and bottom plugs pre- installed on rig floor. Hold pre -job meeting with BJ and all handS on procedures and safety for cement job. Finish circulating with rig pumps (13030 strokes total). 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 Rig up cementing head and cement lines. Blow air through cement lines and valves to clear. Switch to BJ pumping unit. Pump 3.0 bbls of water to fill lines and pressure test to 2808psi. Bleed off pressure and line out to pump spacer. Mix and pump 17.2 bbls of 10.0ppg Sealbond II spacer. Finish pumping spacer and shut down. Open up bottom valve and drop first (bottom) plug. Mix and pump 196.0 bbls of 10.5ppg cement slurry (327 sacks of Class G cement plus accelerator chemicals mixed with 99.70 bbls water to batch -up at 12.80 galsk and yield of 3.31 cu- ft/sk). Stop pumping. Open top valve and close middle and bottom valve on circulating head. Drop second (top) plug. Pump 4.9 bbls of water to kick out the top plug. Switch over to rig pumps. Displace cement with 418.0 bbls (8966 strokes) of mud (and 422 9 bbls total displacement). Bump plug with 980psi over circulating pressure (and 1410psi total pressure). Bleed off. Check floats. Cement in place. No losses of mud during displacement. Begin wait on cement. Flush down, blow down and rig down BJ cementing head and cement lines. EPOCH PERSONNEL ON BOARD 2 DAILY COST ML: 2600 RW: 635 REPORT BY Craig Silva • Kenai G Mara Company EPOCH Kenai Gas Field DAILY WELLSITE REPORT KBU 11 -17X REPORT FOR John Nicholson / Dan Byrd DATE Feb 25, 2009 DEPTH 5600 PRESENT OPERATION Running in hole to drill out shoe tract TIME 24:00 YESTERDAY 5600 24 HOUR FOOTAGE 0 CASING INFORMATION 9 5/8" © 5585' DEPTH INCLINATION AZIMUTH VERTICAL DEPTH SURVEY DATA BIT INFORMATION INTERVAL CONDITION REASON NO. SIZE TYPE S/N JETS IN OUT FOOTAGE HOURS T /B /C PULLED 3 8.5 HCC HCM503ZX 7114328 3x13 3x14 5600 In Hole DRILLING PARAMETERS HIGH LOW AVERAGE CURRENT AVG RATE OF PENETRATION @ FT /HR SURFACE TORQUE @ @ AMPS WEIGHT ON BIT @ @ KLBS ROTARY RPM @ cQ RPM PUMP PRESSURE @ @ PSI DRILLING MUD REPORT DEPTH 5600 / 5463 TVD MW 9.4 VIS 57 PV 14 YP 24 FL 7.0 Gels 11/14/15 CL- 19000 FC 1 SOL 6.5 SD Tr OIL 3/91 MBL 8.0 pH 9.0 Ca+ 200 CCI MWD SUMMARY INTERVAL TO TOOLS • GAS SUMMARY (units) DITCH GAS HIGH LOW AVERAGE @ @ TRIP GAS CUTTING GAS © WIPER GAS CHROMATOGRAPHY (ppm) SURVEY METHANE (C -1) @ cQ 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 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 9 5/8" pack -off and run in on 1 joint of HWDP. Energize seals and attempt to test packoff. Test failed. Pull pack -off and observe bad o- rings. Remove drip pan and pull riser. Replace o- rings. Run in packoff second time, energize seals and successfully test packoff to 5000psi for 10 minutes. Pull and lay down packoff and joint of HWDP. 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 test plug. Rig up testing equipment. Test [ #1] annular preventer to 250psi Low /2500psi High for 10 DAILY minutes. Test all other BOPE to 250psi Low /3000psi High for 10 minutes ( #2] upper pipe rams, check valve, dart valve, upper Topdrive IBOP, ACTIVITY CMVs 1- 10- 11 -12, [ #3] floor valve, lower Topdrive IBOP, outside kill valve, CMVs 6 -8 -9, [#4] inside kill valve, CMVs 2 -5 -7, [ #5] HCR, [ #6] manual SUMMARY choke, [ #7] CMVs 3 -4, blind rams ). Perform accumulator drawdown test. Test gas alarms. Rig down testing equipment. Pull test plug. Install wear bushing. Service rig. Readjust and set torque tube. 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 793'. Test MWD pulse signal. Install corrosion ring to first joint of 5" drill pipe. Strap, pick up, rabbit, drift, make up and run in hole 68 joints (34 stands) of pre - staged and prepped 5" drill pipe off the pipe racks. Run racked 5" drill pipe in hole to 2939'. Briefly fill pipe. Continue running in hole with stands of 5" drill pipe out of the derrick from 2939' to 5380'. Stop running in drill pipe and test 9 5/8" casing to 1500psi for 30 minutes. EPOCH PERSONNEL ON BOARD 4 DAILY COST ML: 3400 RW: 595 REPORT BY Craig Silva Marathon Oil Company • Kenai Gas Field DAILY WELLSITE REPORT EPOCH KBU 11 -17X REPORT FOR John Nicholson / Dan Byrd DATE Feb 26, 2009 DEPTH 6925 PRESENT OPERATION Pulling out of hole on wiper trip from 6925 to shoe TIME 24:00 YESTERDAY 5600 24 HOUR FOOTAGE 1325 CASING INFORMATION 9 518" @ 5585' DEPTH INCLINATION AZIMUTH VERTICAL DEPTH 5673 0.73 84.48 5536.75 SURVEY DATA 5863 0.67 89.46 5726.73 6242 0.66 60.17 6105.70 6432 0,55 62.41 6295.69 6812 0.48 53.78 6675.67 BIT INFORMATION INTERVAL CONDITION REASON NO. SIZE TYPE SIN JETS IN OUT FOOTAGE HOURS T /B /C PULLED 3 8.5 HCC HCM503ZX 7114328 3x13 3x14 5600 1325 11.52 In Hole DRILLING PARAMETERS HIGH LOW AVERAGE CURRENT AVG RATE OF PENETRATION 177.4 @ 6047 16.7 @ 6609 124.9 105.4 FT /HR SURFACE TORQUE 16115 @ 6044 6405 @ 5709 9637.8 9389.9 AMPS WEIGHT ON BIT 21.8 @ 6747 1.4 @ 5883 7.5 7.9 KLBS ROTARY RPM 85 @ 5729 49 @ 6496 79.7 80.2 RPM PUMP PRESSURE 2021 @ 6747 1052 @ 5620 1630.2 1803.6 PSI DRILLING MUD REPORT DEPTH 6925 / 6789 TVD MW 9.7 VIS 51 PV 14 YP 23 FL 7.2 Gels 11/14/15 CL- 20000 FC 1 SOL 7.0 SD Tr OIL 3/90 MBL 8.0 pH 9.4 Ca+ 200 CCI MWD SUMMARY ID INTERVAL TO TOOLS GAS SUMMARY (units) HIGH LOW AVERAGE DITCH GAS 270 @ 6901 2 @ 6267 38.2 TRIP GAS CUTTING GAS @ @ WIPER GAS CHROMATOGRAPHY (ppm) SURVEY METHANE (C -1) 54029 @ 6901 571 @ 6267 7569.8 CONNECTION GAS HIGH ETHANE (C -2) 26 @ 6901 0 @ 6671 0.9 AVG PROPANE (C -3) 4 @ 6901 0 @ 6843 0.1 CURRENT BUTANE (C -4) @ @ CURRENT BACKGROUND /AVG 2 / 150 PENTANE (C -5) @ @ HYDROCARBON At least 3 non -coal zones of gas over (or very near) 100 units of gas. Generally appear as poor shows due to clay volume. SHOWS INTERVAL LITHOLOGY /REMARKS GAS DESCRIPTION 6458 -6464, 6882 -6786 All zones are clay matrix supported sandstones in which 270u Max, 100u to 150u All tuffaceous clay matrix supported (non- continuous), 6850- the matrix material is easily hydrated and partially soluble; background through zones, sandstones; Sd /SS: med gry, fn -med, 6925 (non- continuous) the matrix volume is expanded at the surface and gives 195u average thru last massive mod well -mod srtd, ang- sbang, tuff cly appearance of having low porosity and permeability. Gas zone, 10u before and 2u after mtrx spprtd, tr calc cmtd gr spprtd, mostly amounts suggest improved perms is undisturbed at depth. entering last zone (after 0.3ppg compositional graywacke ( >35% lithics), MW increase) poor vis por and perm. LITHOLOGY Major Tuffaceous Claystone, Tuffaceous Siltstone, Sand /Sandstone, Volcanic Ash, Coal/Carbonaceous Shale, Tuffaceous Sandstone. Minor Tuffaceous Shale, Calcarreous Tuff, Conglomeratic Sand /Conglomerate, Carbonaceous Tuffaceous Claystone. PRESENT TUFFACEOUS CLAYSTONE TUFFACEOUS SILTSTONE SANDSTONE LITHOLOGY Finish testing 9 5/8" casing. Blowdown mud lines and choke manifold. Break circulation. Wash down from 5380' to 5497' (above float collar). Tag up cement at 5497'. Drill cement to top of float collar at 5499'. Drill out float collar and remaining shoe tract (float, cement in spacer joints, casing shoe at 5585', 15' of rathole) to 5600'. Drill 20' of new hole from 5600' to 5620'. Circulate bottoms up and continue circulating to clean hole. Swap DAILY over older citric and bicarbonate treated Flo -Pro mud in the hole with "cleaned -up" Flo -Pro mud on the fly while drilling shoe tract, new hole and ACTIVITY circulating out. Cease circulating and pull up 1 1/2 stands back into the casing at 5536'. Perform Formation Integrity Test (9.4ppg, 5463tvd, SUMMARY 711 psi) to 12.0 EM W. Blow down kill and choke manifold. Run back in hole from 5536' to 5598'. Break circulation and wash down from 5598' to 5620'. Drill from 5620' to 6925'. Circulate bottoms up. Record high gas, including maximum 270 units (at 6901'), circulating up last stand of hole drilled. Circulate high gas down and continue circulating while building mud weight from 9.4ppg to 9.7ppg. Circulate and condition mud to 9.7ppg all the way around. Check for flow. Pull out of hole from 6925' to 6608' on wiper trip to shoe. Note hole sticky and pulling tight from 6718' to 6608'. EPOCH PERSONNEL ON BOARD 4 DAILY COST ML: 3400 RW: 595 REPORT BY Craig Silva • Marathon Oil Company El Kenai Gas Field DAILY WELLSITE REPORT EPOCH KBU 11 -17X REPORT FOR John Nicholson / Dan Byrd DATE Feb 27, 2009 DEPTH 7972 PRESENT OPERATION Drilling TIME 24:00 YESTERDAY 6925 24 HOUR FOOTAGE 1046 CASING INFORMATION 9 5/8" @ 5585' DEPTH INCLINATION AZIMUTH VERTICAL DEPTH 7003 0.61 043.2 6866.66 SURVEY DATA 7383 0.68 025..52 7246.64 7764 0.72 015.35 7627.60 7889 0.91 015.28 7752.59 BIT INFORMATION INTERVAL CONDITION REASON NO. SIZE TYPE S/N JETS IN OUT FOOTAGE HOURS T /B /C PULLED 3 8.5 HCC HCM503ZX 7114328 3x13 3x14 5600 2372 21.80 In Hole DRILLING PARAMETERS HIGH LOW AVERAGE CURRENT AVG RATE OF PENETRATION 198.1 @ 7754 15.5 @ 7969 116.5 74.7 FT /HR SURFACE TORQUE 17357 @ 7928 7978 CO 6979 11586.2 9001.6 AMPS WEIGHT ON BIT 16.1 © 7922 0.4 @ 7779 7.5 7.8 KLBS ROTARY RPM 90 © 6959 50 @ 7506 79.9 80.0 RPM PUMP PRESSURE 2245 @ 7758 1571 © 6926 1942.8 2036.1 PSI DRILLING MUD REPORT DEPTH 7935 / 7799 TVD MW 10.4 VIS 54 PV 17 YP 21 FL 6.0 Gels 7/11/12 CL- 20000 FC 1 SOL 11.0 SD Tr OIL 4/86 MBL 8.0 pH 9.8 Ca+ 200 CCI S MWD SUMMARY INTERVAL TO TOOLS GAS SUMMARY (units) HIGH LOW AVERAGE DITCH GAS 1520 @ 7878 13 @ 7625 135.1 TRIP GAS CUTTING GAS @ @ WIPER GAS 100 CHROMATOGRAPHY (ppm) SURVEY METHANE (C -1) 303293 @ 7878 2712 @ 7625 26575.4 CONNECTION GAS HIGH 1600 ETHANE (C -2) 366 © 7878 0 © 17.1 AVG 1021 PROPANE (C -3) 144 @ 7878 0 @ 3.1 CURRENT 1495 BUTANE (C -4) 24 @ 7878 0 @ 0.1 CURRENT BACKGROUND /AVG 110 / 365 PENTANE (C -5) © @ HYDROCARBON SHOWS At least 22 intervals and 583' of sand interval with gas over 100 units, and includes 5 intervals with gas over 500 units. Apparent good gas shows. INTERVAL LITHOLOGY /REMARKS GAS DESCRIPTION Too numerous to list, but Most zones are clay matrix supported and at least partially expansive 1675 Max, 455 Many subtle variations. Most med It 55% of entire interval when hydrated, giving appearance of low porosity and permeability. units overall avg gry, fn -med, mod w srtd, often fining represents at least a poor High gas suggests better permeability. Zones with very high gas are in zones, 10 -80 upward, ang, both matrix and grain show and many are fair to clean - looking sands that have very obvious moderate to good visible units before support, sublithic aren to comp gywke; good porosity. The high gas in all zones suggests generally good gas zones, 40 -120 many examples of fair -good porosity. producibility. units after zones LITHOLOGY Major Sand /Sandstone, Tuffaceous Sandstone, Tuffaceous Siltstone, Coal /Carbonaceous Shale, Volcanic Ash. Minor Calcareous Tuff, Tuffaceous Shale. PRESENT SAND /SANDSTONE TUFFACEOUS CLAYSTONE . TUFFACEOUS SILTSTONE LITHOLOGY Continue pulling out of hole on wiper trip to shoe. Continue pulling generally sticky and tight from 6608' to 6228', requiring frequent working of the pipe. Kelly up, circulate as necessary, and backream out from 6228' to 5534' (inside 9 5/8" shoe). Blow down mud lines. Service rig and Topdrive. DAILY Fix hydraulic fluid leak from new hose on Denison pump. Run back in hole from 5534' to 6862'. Wash down from 6862' to bottom at 6925'. Clean ACTIVITY out 7' of fill. Record 100 units of wiper gas on bottoms up. Drill from 6925' to 7700'. Circulate bottoms up for mudlog evaluaton by Marathon SUMMARY geologist. Continue drilling from 7700' to 7935'. On way to 7935', record 1675 units of gas from connection at 7877' and over 1500 units of formation gas to7879'. Circulate bottoms up at 7935' for mudlog evaluaton by Marathon geologist. Continue circulating and increase mud weight from 9.7ppg to 10.3 ppg. Drill ahead from 7935' to 7972'. • EPOCH PERSONNEL ON BOARD 4 DAILY COST ML: 3400 RW: 595 REPORT BY Craig Silva Marathon Oil Company Marathon Oil Company DAILY WELLSITE REPORT EPOC1E[ • KBU 11 -17X REPORT FOR John Nicholson / Dan Byrd DATE Feb 28, 2009 DEPTH 8055 PRESENT OPERATION Pulling of hole to surface TIME 24:00 YESTERDAY 7972 24 HOUR FOOTAGE 83 CASING INFORMATION 9 5/8" @ 5585' DEPTH INCLINATION AZIMUTH VERTICAL DEPTH SURVEY DATA 8002 0.99 009.92 7865.57 8055 (Projection) 0.99 009.92 7918.56 BIT INFORMATION INTERVAL CONDITION REASON NO. SIZE TYPE S/N JETS IN OUT FOOTAGE HOURS T /B /C PULLED 3 8.5 HCC HCM503ZX 7114328 3x13 3x14 5600 2455 22.99 In Hole DRILLING PARAMETERS HIGH LOW AVERAGE CURRENT AVG RATE OF PENETRATION 124.2 @ 8050 16.7 @ 8032 82.0 111.0 FT /HR SURFACE TORQUE 16354 @ 7988 9169 @ 7973 12480,0 13131.2 AMPS WEIGHT ON BIT 11.8 @ 8032 5.3 @ 8004 8.5 10.2 KLBS ROTARY RPM 83 @ 8003 78 @ 8006 80.0 80.1 RPM PUMP PRESSURE 2232 @ 8054 1751 @ 8003 2081.7 2141.8 PSI DRILLING MUD REPORT DEPTH 8055 / 7818 TVD MW 10.7 VIS 57 PV 19 YP 26 FL 5.8 Gels 8/12/14 CL- 20000 FC 1 SOL 12.5 SD 0.5 OIL 4/84 MBL 8.0 pH 10.0 Ca+ 200 CCI MIND SUMMARY INTERVAL TO TOOLS GAS SUMMARY (units) HIGH LOW AVERAGE DITCH GAS 372 @ 8050 39 @ 8031 102.2 TRIP GAS CUTTING GAS @ @ WIPER GAS 3960 (1st) 1942 (2nd) CHROMATOGRAPHY (ppm) SURVEY METHANE (C -1) 74315 @ 8050 7925 @ 8031 20423.9 CONNECTION GAS HIGH 1406 ETHANE (C -2) 57 @ 8050 0 @ 8030 9.9 AVG 1406 PROPANE (C -3) 17 @ 8050 0 @ 8030 2.3 CURRENT 1406 BUTANE (C -4) 2 @ 8050 0 @ 8043 0.1 CURRENT BACKGROUND /AVG N/A PENTANE (C -5) @ @ HYDROCARBON SHOWS NONE The high gases in last 83' drilled were from coal zones. j INTERVAL LITHOLOGY /REMARKS GAS DESCRIPTION LITHOLOGY Major Tuffaceous Claystone, Tuffaceous Siltstone, Sand /Sandstone, Volcanic Ash, Tuffaceous Sandstone, Coal /Carbonaceous Shale. Minor Calcareous Tuff. PRESENT COAL SANDSTONE TUFFACEOUS CLAYSTONE . LITHOLOGY Continue to drill ahead from 7972' to 8055'. Circulate bottoms up and continue circulating until 8055' is confirmed as the T.D. of the well by the Marathon geologist. Record 1106 units of of gas from connection at 8002' and observe 371 units of formation gas at bottoms up. Check for flow and prep for wiper trip. Pull out of hole slick from 8055 to 7927'. Pull of hole from 7927' with significant sticking, requiring working of pipe several times on way to 7687'. Kelly up and backream out of hole from 7687' to 6925'. Note that gas circulated out during backreaming is increasing with each stand on way out, reaching 374 units on last stand to 6925'. Run back in hole from 6925' to 7938'. Break circulation and wash down from 7938' to bottom at 8055'. Begin circulating bottoms up. Gas increased from 270 units to 450 units within the first 1000 strokes, began increasing rapidly approximately 2000 strokes before bottoms up and reached a maximum recorded 3960 units when well was shut in 1000 strokes before bottoms up and circulated through gas buster (at 72spm, 324psi). Circulate 1100 strokes through gas buster and then cease circulating and shut DAILY well in. No pressure build -up in hole or drill pipe. Open annular and circulate conventionally on 2 pumps (at 90spm, 1000psi). Gas reached 1374 ACTIVITY units maximum within 400 strokes after opening annular. Circulate gas back down to 100 units within 1260 total strokes after re- opening annular. SUMMARY (Note that mud weight stayed constant at 10.3+ in and out through all shut -in and circulating events since wiper trip). Increase conventional pump rate to 120spm, 1050psi on 3 pumps and begin building mud weight to 10.5 ppg. Gas dropped down to 45 units after 10.5 ppg is reached all the way around. Begin pulling out of hole on wi per trip to 9 5/8" shoe. Pull out of hole free from 8055' to 6925'. Hole began pulling very tight and sticky at 6888'. Run back in to 6925' and kelly up. Pull out of hole back reaming from 6925' to 6038'. (Note maximum gas of 134 units while backreaming). Continue to pull out of hole without needing to backream and with only very minor sticking from 6038' to 5534' (inside of shoe). Run back in hole from 5534' to 8000'. Break circulation. Wash down from 8000' to bottom at 8055'. Begin circulating bottoms up. Start circulating around. Record 1942 units of wiper gas at bottoms up. Begin circulating gas down and increasing mud weight from 10.5+ to 10.7ppg. Observe 595 units of gas when sweep retums. Continue circulate, clean and condition hole while weighting up. Gas reduced to 6 units when 10.7 ppg is achieved all the way around. Check for flow. Mix and pump slightly higher weight dry job. Fill trip tank. Pull out hole (SLM) from 8055' to 5534' (inside 9 5/8 "). Monitor e l well for 5 minutes. Continue pulling out of hole from 5534' to 2621'. EPOCH PERSONNEL ON BOARD 4 DAILY COST ML: 3400 RW: 595 REPORT BY Craig Silva Marathon Oil Company Kenai Gas Field DAILY WELLSITE REPORT EPOCH • KBU 11 -17X REPORT FOR John Nicholson / Dan Byrd DATE Mar 01, 2009 DEPTH 8055 PRESENT OPERATION Waitig for pressure point selection by Marathon geologist TIME 24:00 YESTERDAY 8055 24 HOUR FOOTAGE 0 CASING INFORMATION 9 5/8" @ 5585 SURVEY DATA DEPTH INCLINATION AZIMUTH VERTICAL DEPTH BIT INFORMATION INTERVAL CONDITION REASON NO. SIZE TYPE S/N JETS IN OUT FOOTAGE HOURS T /B /C PULLED 3 8.5 HCC HCM503ZX 7114328 3x13 3x14 5600 8055 2455 22.99 0- 1- WT- S- X- 1 -NO -TD TD of well DRILLING PARAMETERS HIGH LOW AVERAGE CURRENT AVG RATE OF PENETRATION @ @ FT /HR SURFACE TORQUE @ @ AMPS WEIGHT ON BIT @ @ KLBS ROTARY RPM @ @ RPM PUMP PRESSURE @ @ PSI DRILLING MUD REPORT DEPTH 8055 / 7918 TVD MW 10.8 VIS 55 PV 18 YP 19 FL 5.8 Gels 7/11/12 CL- 19000 FC 1 SOL 13.5 SD 0.33 OIL 4/83 MBL 8.0 pH 10.0 Ca+ 200 CCI MWD SUMMARY INTERVAL TO TOOLS GAS SUMMARY (units) HIGH LOW AVERAGE DITCH GAS 867 @ TG at 8055' 2 @ At start of circulating 430 Circ bottoms up TRIP GAS 867 • 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 pulling out of hole from 2621' to top of bottom hole assembly at 792'. Pull and stand back 11 stands of 5" HWDP (21 joints plus jars) to 136'. 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. 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 8055'. Log up from with WWS Quad -Combo assembly from 8055' to 7800'. Run back to bottom 2 times and log up 2 times over latter interval to make a dedicated repeat section and to check caliper function and orientation. On final pass, log up with DAILY WWS Quad -Combo assembly from 8055' to 5585' in open hole and from 5585' to 1600' in cased hole. Pull wireline assembly out of hole from ACTIVITY 1600'. Unload sources. Break and lay down Quad -Combo logging tools. Rig down lubricator, pack off and single of 5" drill pipe. Rig down sheaves SUMMARY and wireline running equipment. Continue to monitor well with trip tank. Begin wait for pressure point determinations by Marathon Geology. Pick up and make up mule shoe to first stand of open -ended 5" HWDP. Run in hole with 5" HWDP to 125'. Break and lay down jars. Continue running in hole with 5" HWDP to 626'. Crossover to 5" drill pipe and continue running in hole to 5570'. Cut and slip 171' of drill line. Slip back to 21 wraps (140'). Reset and check crown -o- matic. Continue running in hole with drill pipe from 5575' to 7907'. Strap, pick up, drift and single in joints of 5" drill pipe from 7907' to 8055'. Break circulation and wash down last joint from 8021' to bottom at 8055' (with no fill). Circulate bottoms up and record 867 units of trip gas. Circulate high gas down and continue to circulate, clean and condition hole. Check for flow. Pump dry job. Pull out of hole from 8055' to 5567'. Hold pre -job meeting with Weatherford Wireline Services' loggers on procedures and safety for handling wireline running equipment 1 and logging tools. Stage logging tools on catwalk. Hang sheaves and rig up wireline running equipment and install lubricator and packoff. Pick up, make up and prepare to run MFT logging assembly inside the 5" drill pipe. Continue wait on pressure point determinations by Marathon Geology. EPOCH PERSONNEL ON BOARD 2 DAILY COST ML:2600 RW: 595 Consulting: 1300 REPORT BY Craig Silva I • Marathon Oil Company Kenai Gas Field DAILY WELLSITE REPORT EPOCH KBU 11 -17X REPORT FOR John Nicholson / Dan Byrd DATE Mar 02, 2009 DEPTH 8055 PRESENT OPERATION Wireline logging TIME 24:00 YESTERDAY 8055 24 HOUR FOOTAGE 0 CASING INFORMATION 9 5/8" @ 5585' SURVEY DATA DEPTH INCLINATION AZIMUTH VERTICAL DEPTH BIT INFORMATION INTERVAL CONDITION REASON NO. SIZE TYPE S/N JETS IN OUT FOOTAGE HOURS T /B /C PULLED DRILLING PARAMETERS HIGH LOW AVERAGE CURRENT AVG RATE OF PENETRATION @ @ FT /HR SURFACE TORQUE © @ AMPS WEIGHT ON BIT © @ KLBS ROTARY RPM @ @ RPM PUMP PRESSURE @ © PSI DRILLING MUD REPORT DEPTH 8055 / 7918 TVD MW 10.9 VIS 56 PV 18 YP 20 FL 5.8 Gels 7/11/12 CL- 19000 FC 1 SOL 13.0 SD 0.33 OIL 3/84 MBL 8.0 pH 9.7 Ca+ 200 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 Run downhole inside 5" drillpipe and HWDP with Weatherford Wireline Services' MFT logging assembly and park at 5560' (just above the muleshoe) until pressure point determinations are finalized by Marathon Geology. Monitor well through all wireline operations with the trip tank. Receive pressure point list from geolgist. Run MFT assembly down through the muleshoe at 5564' and continue downhole to 7950'. Do gamma DAILY correlation and position formation tester at first pressure point. Log up, taking pressure points from 7941' to 7889'. Tool performance indicates a ACTIVITY plugged sensor on a series of tests from 7889' to 7830'. Pull out of hole with wireline logging assembly and inspect and clean MFT tool sensor SUMMARY pads. Run back in hole with MFT assembly and log up taking pressure points from 7889' to 6458'. Note various rig servicing, maintenance and other activities while wireline logging is taking place (putting out ice melt and sand, greasing pit valves, setting up MagTec heaters, fabricating new access doors for sub -base, cleaning beaver strainers, working on manriders, computer safety training, checking pump control on Driller's console extension, repairing air slips, changing out roto -seal on drill floor water hose, cleaning snow and ice from rig mats, doing an inventory of pump parts and shaker screens, cleaning and stacking used pallets and verifying the inventory of mud products). EPOCH PERSONNEL ON BOARD 2 DAILY COST ML: 2600 RW: 595 Consulting: 1300 REPORT BY Craig Silva • • Marathon Oil Company EPOCH • Kenai Gas Field KBU 11 -17X DAILY WELLSITE REPORT Ell REPORT FOR John Nicholson / Dan Byrd DATE Mar 03, 2009 DEPTH 8055 PRESENT OPERATION Pulling out of hole laying all drill pipe TIME 24:00 YESTERDAY 8055 24 HOUR FOOTAGE 0 CASING INFORMATION 9 5/8" @ 5585' 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 4RR 8.5 HCC MXL -1 6054215 Open 8055 8055 0 n/a In Hole Clean out only DRILLING PARAMETERS HIGH LOW AVERAGE CURRENT AVG RATE OF PENETRATION @ @ FT /HR SURFACE TORQUE @ @ AMPS WEIGHT ON BIT @ @ KLBS ROTARY RPM @ @ RPM PUMP PRESSURE @ @ PSI DRILLING MUD REPORT DEPTH 8055 / 7918 TVD MW 11.1 VIS 58 PV 20 YP 24 FL 5.6 Gels 8/12/14 CL- 19000 FC 1 SOL 14.0 SD 0.4 OIL 3/83 MBL 8.0 pH 10.0 Ca+ 200 CCI MWDSUMMARY INTERVAL TO TOOLS GAS SUMMARY (units) HIGH LOW AVERAGE IP DITCH GAS 1503 @ TG at 8055 2 @ inside casing running in 880 circulating bottoms up TRIP GAS 1503 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 While wireline logging, continue monitoring well with trip tank and performing needed rig services. Continue logging up with wireline MFT tool, taking pressure points from 6458' to 6200'. Pull out of hole with wireline assembly. Break and lay down MFT logging tools. Rig down lubricator, pack -off and single of 5" drill pipe. Rig down Weatherford Wireline Services' sheaves and wireline running equipment. Clear and clean rig floor. Set up to pull drill pipe. Pull out of hole from 5567' with 5" drill pipe and HWDP. Break and lay down muleshoe. Pick up and make up bit and bit sub to DAILY first stand of 5" HWDP and run in hole on dedicated clean out run. Run in hole to 2932' (inside casing). Break circulation and circulate bottoms up. ACTIVITY Record 2 units maximum gas. Continue running in hole to 5590' (just outside of shoe). Break circulation and circulate bottoms up. Record 21 units SUMMARY maximum gas. Continue running in hole to 7996'. Break circulation and wash down from 7996' to bottom at 8055'. Circulate bottoms up and record 1503 units of trip gas. Circulate, clean and condition hole while raising mud weight from 10.8ppg to 11.0ppg. Treat mud with corrosion inhibitor, oxygen scavenger and caustic while getting to 11.0ppg. Monitor well. Take a new slow pump rate. Check for flow. Pump dry job. Pull out of hole from 8055' to 7905' laying down 5" drill pipe. Blow down Topdrive and mud lines. Continue pulling out of hole from 7905' laying down 5" drill pipe to top of 5" HWDP at 660'. Remove corrosion ring from last joint of drill pipe. Pull and lay down 5" HWDPand jars. EPOCH PERSONNEL ON BOARD 2 DAILY COST ML: 2600 RW: 595 Consulting: 1300 REPORT BY Craig Silva • Marathon Oil Company Kenai Gas Field DAILY WELLSITE REPORT E+ POCH KBU 11 -17X REPORT FOR Rowland Lawson / Mitch Bums DATE Mar 04, 2009 DEPTH 8055 PRESENT OPERATION Running in hole with 3 1/2" EXCAPE completion string TIME 24:00 YESTERDAY 8055 24 HOUR FOOTAGE 0 CASING INFORMATION 9 5/8" @ 5585' SURVEY DATA DEPTH INCLINATION AZIMUTH VERTICAL DEPTH BIT INFORMATION INTERVAL CONDITION REASON NO. SIZE TYPE S/N JETS IN OUT FOOTAGE HOURS T /B /C PULLED DRILLING PARAMETERS HIGH LOW AVERAGE CURRENT AVG RATE OF PENETRATION @ @ FT /HR SURFACE TORQUE @ @ AMPS WEIGHT ON BIT @ @ KLBS ROTARY RPM @ @ RPM PUMP PRESSURE @ @ PSI DRILLING MUD REPORT DEPTH 8055 / 7918 TVD MW 11.0 VIS 58 PV 19 YP 22 FL 5.8 Gels 8/11/12 CL- 19000 FC 1 SOL 14.0 SD 0.33 OIL 3/83 MBL 8.0 pH 9.6 Ca+ 200 CCI MWD SUMMARY INTERVAL TO TOOLS GAS SUMMARY (units) HIGH LOW AVERAGE DITCH GAS 5 @ circ inside shoe (5563) 0 @ at start of circ 4 inside shoe (5563) TRIP GAS 5 just inside shoe 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 Break 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. Level up mast while changing bails and elevators. Pick up, make up and set 3 1/2" test joint. Rig up test equipment. Test 2 7/8" by 5 1/2" variable rams to 250psi Low / 2000psi High for 5 minutes. Rig down test equipment. Pull and lay down test joint. Test safety valve to 250psi Low / 2000psi High for 5 minutes. 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 tool. Rig up Weatherford fill -up line, circulating line, and floor valves. Use crane to position sheave with DAILY control lines previously fed through and aligned. Pull down to floor and tie off the 2 control lines and a protector dummy line. Rig up Pollard Wireline ACTIVITY Service to perform banding of control lines. Inspect and insure that staged modules are in correct order on short pipe rack. 13 modules are to be SUMMARY run. Hold pre -job meeting with all hands on procedures and safety for running 3 1/2" EXCAPE completion string. Begin running in hole with 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 to carefully pick up, make up and run in hole to 1609', the modules section of the completion string (Davis Lynch float tools, 13 EXCAPE modules, 28 standard joints, 19 pup joints, chemical injection module). Break circulation and circulate out. Continue running in hole with 3 1/2" EXCAPE casing to 5563' (just inside 9 5/8" shoe). Rig up circulating head and 2" line. Begin circulating, bringing pumps up slowly. Circulate 2603 strokes (121.29 bbls at 105spm, 675psi, 205.5gpm). Cease pumping and continue running in hole with 3 1/2" EXCAPE casing from 5563' (to 6246'). EPOCH PERSONNEL ON BOARD 2 DAILY COST ML: 2600 RW: 595 REPORT BY Craig Silva • Marathon Oil Company Kenai Gas Field DAILY WELLSITE REPORT EPOCH KBU 11 -17X • REPORT FOR Rowland Lawson / Mitch Bums DATE Mar 05, 2009 DEPTH 8055 PRESENT OPERATION Preparing to pick up 3 1/2" casing and set slips TIME 24:00 YESTERDAY 8055 24 HOUR FOOTAGE 0 CASING INFORMATION 3 1/2" @ 8012' SURVEY DATA DEPTH INCLINATION AZIMUTH VERTICAL DEPTH BIT INFORMATION INTERVAL CONDITION REASON NO. SIZE TYPE S/N JETS IN OUT FOOTAGE HOURS T /B /C PULLED DRILLING PARAMETERS HIGH LOW AVERAGE CURRENT AVG RATE OF PENETRATION @ @ FT /HR SURFACE TORQUE @ @ AMPS WEIGHT ON BIT @ @ KLBS ROTARY RPM @ @ RPM PUMP PRESSURE @ © PSI DRILLING MUD REPORT DEPTH 8055 / 7918 TVD MW 11.0 VIS 58 PV 20 YP 23 FL 5.8 Gels 8/11/12 CL- 19000 FC 1 SOL 14.0 SD 0.33 OIL 3/83 MBL 8.0 pH 9.5 Ca+ 200 CCI MWD SUMMARY INTERVAL TO TOOLS GAS SUMMARY (units) HIGH LOW AVERAGE DITCH GAS 38 @ TG at 8015 1 @ displacing with brine 23 Circ before cementing TRIP GAS 38 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 Load out drill pipe and haul off to next location while running casing. Continue running in hole with 3 1/2" EXCAPE casing from 6246' to 8015'. Terminate control lines and cable. Lower down sheave with crane and then rig down and load off. Begin loading out pipe racks after casing is run. Rig up circulating head and line. Circulate while reciprocating pipe. Circulate bottoms up. Record 38 units of trip gas. Continue circulating (13778 total strokes at 895psi, 108spm, 213gpm). Stop pumping and check for flow. Rig up Expro Wireline Service equipment and hold brief pre -job meeting on wireline operations. Run in hole with gamma correlation log to determine positioning of EXCAPE modules. Log up from 7970' to 6000' and pull out of hole with wireline assembly. Make correlation determination with gamma log. Note that the shoe will be adjusted up 2.8' to 8012.42'. Rig down Expro WLS. Transfer 200 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 I meeting with BJ on cementing procedures and safety for cement job. Pump 3.2 bbls of water to fill lines. Pressure test cementing lines to 4144psi. Bleed pressure. Mix and pump 41.1 bbls of 11.5ppg MCS -4D Spacer, using 38.14 bbls of water. After sweep, pump 235.0 bbls of 15.8ppg cement slurry (1132 sacks of Class G cement plus accelerator chemicals mixed with 132.31 bbls water to obtain 4.909 gal /sk and yield 1.170 cuft/sk). Shut DAILY down, close valve to head and open wash -up valve. Pump 4.0 bbls water to clean out pumps and wash lines from floor out to slop tank. Wash up ACTIVITY pump and lines, Close wash up valve and open to head. Drop (top) plug and change valves to pump out. Pump out plug with 1,5 bbls of 3% KCI SUMMARY brine and continue pumping to displace cement with 68.9 bbls of same KCI brine. (Total displacement is 70.4. bbls). Record maximum 4 units of gas while displacing. Bump plug with 1023psi over 2184psi circulating pressure. Bleed off pressure. Check floats. Cement in place. Begin wait on cement. Note no losses and no returns to surface during cement job. Flush and blow down cementing head and lines back to slop tank. Rig down and lay down cementing head. Clear and clean rig floor of all unneeded tools, rags and miscellaneous equipment. Flush and blow down all mud pumps, mix pumps and pump lines, choke manifold and choke lines, mud manifold, fill and trip lines, overhead and mud pump -out lines. Rinse, clean and pump out trip tank. Flush, washout and blow down stack. Remove and lay down mousehole. Pump out cellar and clean up sub -base. Pump all fluids flushed through rig lines and manifolds out to a vac truck for haul -off. Begin pumping most of the Flo -Pro mud remaining in the pits through the centrifuge, for the purpose of reducing mud weight to 9.8ppg, while also "scrubbing" the mud and chemically treating it prior to storage for use on the next well. Pump out all of the unrecycled mud into Vac trucks for haul off, and then begin cleaning emptied -out pits. Unchain and prepare stack for nipple down. Nipple down and rig down flow nipple, choke line, kill line and turnbuckles. Remove and load off drip pan. Rig down bleeder. Rig down fill -up and trip tank lines. Nipple down, pull and remove riser. Rig down accumulator lines and panic line. Remove kill line check valve and chokeline hardline. Rig up bridge cranes to BOP stack. Remove top spacer spool. Unbolt and pickup stack as per Marathon. Finish centrifuging, conditioning and hauling off bulk storage Flo -Pro mud. Continue cleaning empty pits and hauling off wash water. • EPOCH PERSONNEL ON BOARD 2 DAILY COST ML: 2600 RW: 595 REPORT BY Craig Silva • Marathon Oil Company Kenai G EPOCH Kenai Gas Field DAILY WELLSITE REPORT Ell KBU 11 -17X REPORT FOR Rowland Lawson / Mitch Burns DATE Mar 06, 2009 DEPTH 8055 PRESENT OPERATION Rig down operations TIME 24:00 YESTERDAY 8055 24 HOUR FOOTAGE 0 CASING INFORMATION 3 1/2" @ 8012' 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 Surface MW 8.5 VIS 28 PV 1 YP 1 FL Gels CL- 21000 FC KCL Brine SOL SD OIL MBL pH 7.7 Ca+ CCI MWD SUMMARY INTERVAL TO TOOLS GAS SUMMARY (units) HIGH LOW AVERAGE • DITCH GAS @ @ TRIP GAS CUTTING GAS @ @ WIPER GAS CHROMATOGRAPHY (ppm) SURVEY METHANE (C -1) @ @ CONNECTION GAS HIGH ETHANE (C -2) @ @ AVG PROPANE (C -3) @ @ CURRENT BUTANE (C -4) @ @ CURRENT BACKGROUND /AVG PENTANE (C -5) @ @ HYDROCARBON SHOWS INTERVAL LITHOLOGY /REMARKS GAS DESCRIPTI ON LITHOLOGY PRESENT LITHOLOGY Pick up 3 1/2" casing to 75K. Run control lines and electric line through 3 1/2" packoff to tubing bonnet assembly. Terminate control lines with Swagelok fittings. Set 60K weight on slips. Make rough cut above the slips on 3 1/2" casing. Pull and lay down landing joints. Slide BOP stack out of the cellar and partially nipple down. Set BOP stack on rack, finish nipple down and remove stack and spool. 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 move to next DAILY location. Rig down standpipe manifold. Begin rig down of all Glacier No.1 components. Begin loading up trailers with rig and third party equipment ACTIVITY for move to next location. Pump last of 370 bbls of 9.8ppg centrifuged and treated mud to Rain 4 Rent tanks for storage. Finish cleaning pits and SUMMARY pumping off all 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 Tine waming 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 the KBU 42 -6X location. EPOCH PERSONNEL ON BOARD 1 DAILY COST Rig Down: 2925 REPORT BY Craig Silva •