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Home My WebLink About209-1681. 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: 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 7,414 feet 4227 & 4600 feet true vertical 4,179 feet N/A feet Effective Depth measured 4,227 feet 2,271 feet true vertical 1,830 feet 1,404 feet Perforation depth Measured depth See Schematic feet True Vertical depth See Schematic feet Tubing (size, grade, measured and true vertical depth)4-1/2" 12.6# / L-80 2,299 MD 1,408 TVD 2,271 MD Packers and SSSV (type, measured and true vertical depth)Baker ZXP Pkr 1,404 TVD SSSV: 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: Scott Warner, Operations Engineer 325-241 Sr Pet Eng: 7,500psi Sr Pet Geo:Sr Res Eng: WINJ WAG 0 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 N/A scott.warner@hilcorp.com 907-564-4506 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 23 Size 98' 0 2358 0 3660 64 measured TVD 8,430psi STATE OF ALASKA ALASKA OIL AND GAS CONSERVATION COMMISSION REPORT OF SUNDRY WELL OPERATIONS 209-168 50-133-20588-00-00 3800 Centerpoint Drive, Suite 1400 Anchorage, Alaska 99503 Hilcorp Alaska, LLC N/A 5. Permit to Drill Number:2. Operator Name 4. Well Class Before Work: Fee Lease Tract 163, ADL 384372 Ninilchik / Beluga-Tyonek Gas Ninilchik Unit Paxton 3 Plugs Junk measured Length Production Liner 5,184' Casing Structural 4-1/2"7,418'4,182' 98'Conductor Surface Intermediate 20" 9-5/8" 98' 2,520'5,750psi2,520'1,441' Burst Collapse 3,090psi p k ft t Fra O s 6. A G L PG , 2 Form 10-404 Revised 10/2022 Due Within 30 days of Operations Submit in PDF format to aogcc.permitting@alaska.gov By Grace Christianson at 8:40 am, Jun 02, 2025 Digitally signed by Noel Nocas (4361) DN: cn=Noel Nocas (4361) Date: 2025.05.30 16:12:28 - 08'00' Noel Nocas (4361) DSR-6/3/25 RBDMS JSB 061225 BJM 9/19/25 Page 1/1 Well Name: NINU Paxton 03 Report Printed: 5/28/2025WellViewAdmin@hilcorp.com Alaska Weekly Report - Operations Wellbore API/UWI:50-133-20588-00-00 Field Name:Ninilchik State/Province:ALASKA Permit to Drill (PTD) #:209-168 Sundry #:325-241 Rig Name/No: Jobs Actual Start Date:4/28/2025 End Date: Report Number 1 Report Start Date 4/30/2025 Report End Date 5/1/2025 Last 24hr Summary PTW/PJSM. MIRU Scorpion N2, Yellow Jacket E-line, Cruz crane, and Baker tractor. PT N2 iron and EL PCE to 250/4,000 psi. Pump 55.8 mscf nitrogen to push fluid. Run 3.61" GR/JB/GPT to 4,391' - fluid level at 2,330'. Set CIBP at 4,227'. RDMO Scorpion. SDFN. Report Number 2 Report Start Date 5/1/2025 Report End Date 5/2/2025 Last 24hr Summary PTW/PJSM. Stand-up Yellow Jacket E-line.T/I 250/25 psi. PT PCE 250/3000 psi. MU and RIH w/ 2-3/8" Razor XDP, 5 spf, 60* Phsg. Tractor in hole from ~1800'. Perforate BEL 20 3614 - 3624' and BEL 16 3342 - 3354'. RIH and perforate BEL 16 3301 - 3332'. Rehead. RIH and perforate BEL 16 3270 - 3301'. Final T/I 242/25 psi. POH. Stack down and SDFN. Report Number 3 Report Start Date 5/2/2025 Report End Date 5/3/2025 Last 24hr Summary YJ E-Line Perforating. PTW/PJSM. RU Equipment. T/IA 285/23 psi. Perforate BEL 16 f/ 3196 - 3221', BEL 16 f/ 3171 - 3196', BEL 13 f/ 3007 - 3033', BEL 13 f/ 2986 - 3001'. SDFN. T/IA 236/23 psi. Report Number 4 Report Start Date 5/3/2025 Report End Date 5/4/2025 Last 24hr Summary YJ E-Line Perforating. PTW/PJSM. RU Equipment. T/IA 325/23 psi. Perforate BEL 12 f/ 2915 - 2929', BEL 9 f/ 2590 - 2604'. RDMO. T/IA 370/23 psi. ppp ,p,g BEL 20 3614 - 3624' and BEL 16 3342 - 3354'. RIH and perforate BEL 16 3301 - 3332'. Rehead. RIH and perforate BEL 16 3270 - 3301 erforate BEL 16 f/ 3196 - 3221', BEL 16 f/ 3171 - 3196', BEL 13 f/ 3007 - 3033', BEL 13 f/ 2986 - 3001'. Perforate BEL 12 f/ 2915 - 2929', BEL 9 f/ 2590 - 2604 , Set CIBP at 4,227 _____________________________________________________________________________________ Updated by DMA 05-06-25 SCHEMATIC Ninilchik Field Well:Paxton 03 PTD: 209-168 API#: 50-133-20588-00-00 RKB=21’ AGL RKB=21’ AGL CASING DETAIL Size Type Wt/ Grade/ Conn ID Top Btm 20"Conductor 129# / X-56 / N/A N/A Surf 98' 9-5/8"Surface 40# / L-80 / BTC 8.835 Surf 2,520' 4-1/2"Production 12.6# / L-80 / IBT-M 3.958 2,234'7,418' TUBING DETAIL 4-1/2"Tie-Back 12.6# / L-80 / Hyd 563 3.958 Surf 2,299' JEWELRY DETAIL No Depth MD Depth TVD ID Item 1 1,508’1,237’Chemical Injection Mandrel 2 2,271’1,404’>3.80 Baker 4-1/2” ZXP Liner Top Packer with polish bore 3 2,274’1,405’>3.80 Liner Hanger 4 3,261’1,567’3.80” (milled)Stage Cement Collar 5 3,264’1,567’3.80” (Milled)4-1/2” Overshot w/ 4’ Swallow 6 4,227’1,829’N/A CIBP (4/30/25) 7 4,600’2,003’N/A Maverick Retrievable Bridge Plug (Set on 3/14/24) PERFORATION DETAIL Zone Top MD Btm MD Top TVD Btm TVD Length Perf Date Status BEL 9 2,590'2,604'1,451'1,454'14'5/3/2025 Open Bel 10L 2,759’2,779’1,482’1,485’20’9/15/2021 Open Bel 10L 2,780’2,831’1,486’1,494’51’9/17/2021 Open Bel 10L 2,832’2,863’1,495’1,500’31’9/17/2021 Open BEL 12 2,915'2,929'1,508'1,511'14'5/3/2025 Open BEL 13 2,986'3,001'1,521'1,523'15'5/2/2025 Open BEL 13 3,007'3,033'1,524'1,528'26'5/2/2025 Open Bel 15 3,115’3,130’1,542’1,545’15’9/15/2021 Open BEL 16 3,171'3,221'1,552'1,560'50'5/2/2025 Open BEL 16 3,270'3,332'1,568'1,579'62'5/1/2025 Open BEL 16 3,342’3,354’1,581’1,583’12’5/1/2025 Open Bel 20U 3,545’3,571’1,615’1,619’26’9/14/2021 Open Bel 20U 3,577’3,603’1,620’1,625’26’9/14/2021 Open BEL 20 3,614'3,624'1,627'1,628'10'5/1/2025 Open Bel44 4,273'4,290'1,850'1,859'17'3/10/24 Isolated Bel46 4,355'4,368'1,888'1,895'13'3/10/24 Isolated Bel48 4,490'4,505'1,951'1,958'15'3/10/24 Isolated Bel49 4,650'4,660'2,029'2,035'10'3/10/24 Isolated Bel50 4,749'4,759'2,084'2,091'10'3/10/24 Isolated Bel51 4,771'4,786'2,096'2,106'15'3/10/24 Isolated Bel58A 5,214'5,234'2,396'2,412'20'3/9/24 Isolated Bel59 5,309'5,321'2,470'2,480'12'3/9/24 Isolated Bel60 5,345'5,365'2,498'2,515'20'3/9/24 Isolated Bel72 5,468'5,478'2,597'2,606'10'3/8/24 Isolated Bel72 5,488'5,498'2,613'2,623'10'3/8/24 Isolated Bel74 5,561'5,570'2,673'2,681'9'3/8/24 Isolated Bel82 5,672'5,686'2,764'2,775'14'3/8/24 Isolated Bel 105 6,370’6,379’3,331’3,338’9’10/24/2020 Isolated Bel 106 6,388’6,396’3,345’3,352’8’10/23/2020 Isolated Bel 110 6,432'6,452'3,381'3,397'20'4/18/2010 Isolated Bel 120 6,534'6,542'3,464'3,471'8'4/20/2010 Isolated Bel 131 6,627'6,632'3,540'3,544'5'4/20/2010 Isolated Bel 134 6,708'6,715'3,605'3,611'7'4/18/2010 Isolated Bel 134 6,722'6,730'3,617'3,623'8'4/18/2010 Isolated OPEN HOLE / CEMENT DETAIL 9-5/8" 12-1/4" hole cemented with 263 bbls of 12 ppg Type-1 cement. 106 bbls returned to surface 4-1/2" Liner 8-1/2" hole Cemented with 78 bbls of 12.5 ppg Class G Lead and 226 bbls of 15.8 ppg Class G Tail. 100 bbls to surface. Stage #2 cemented with 65 bbls 15.8 ppg Class G. 4/15/10 CBL showed good cement up to 6430’ MD. Patchy cement from 4600’ – 6430’ MD, and good cement above 4600’ MD. MISC. INFORMATION Short Joints at 4,902’ & 6,403’ MD Well Goes >70deg inc below 1600’ MD 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:Scott Warner Subject:RE: Paxton 3 AOGCC 10-403 325-241 PTD 209-168 Approved 04-24-25 Date:Monday, April 28, 2025 5:12:00 PM Approved to set plug with tractor or CT. Bryan McLellan Senior Petroleum Engineer Alaska Oil & Gas Conservation Commission Bryan.mclellan@alaska.gov +1 (907) 250-9193 From: Scott Warner <Scott.Warner@hilcorp.com> Sent: Monday, April 28, 2025 2:21 PM To: McLellan, Bryan J (OGC) <bryan.mclellan@alaska.gov> Subject: FW: Paxton 3 AOGCC 10-403 325-241 PTD 209-168 Approved 04-24-25 Bryan, I am requesting a small change in the sundry. Due to us not knowing for sure if the well has fill I would like to drift the well with the tractor and if that goes well set the plug on tractor rather than coil tubing. If we are unable to get the tractor down, I will clean the well out and set the plug on coil as laid out in the sundry. Thanks, Scott Warner Kenai – Operations Engineer Office: (907) 564-4506 Cell: (907) 830-8863 From: Donna Ambruz <dambruz@hilcorp.com> Sent: Thursday, April 24, 2025 2:49 PM To: Scott Warner <Scott.Warner@hilcorp.com> Cc: Noel Nocas <Noel.Nocas@hilcorp.com> Subject: Paxton 3 AOGCC 10-403 325-241 PTD 209-168 Approved 04-24-25 FYI – Please distribute as necessary. Thank you. Donna Ambruz Operations/Regulatory Tech KEN Asset Team Hilcorp Alaska, LLC 3800 Centerpoint Drive, Suite 1400 Anchorage, AK 99503 907.777.8305 - Direct dambruz@hilcorp.com The information contained in this email message is confidential and may be legally privileged and is intended only for the use of theindividual or entity named above. If you are not an intended recipient or if you have received this message in error, you are hereby notified that any dissemination, distribution, or copy of this email is strictly prohibited. If you have received this email in error, please immediately notify us by return email or telephone if the sender's phone number is listed above, then promptly and permanently delete this message. While all reasonable care has been taken to avoid the transmission of viruses, it is the responsibility of the recipient to ensure that theonward transmission, opening, or use of this message and any attachments will not adversely affect its systems or data. No responsibilityis accepted by the company in this regard and the recipient should carry out such virus and other checks as it considers appropriate. 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): 7,414'N/A Casing Collapse Structural Conductor Surface 3,090psi Intermediate Production Liner 7,500psi 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 scott.warner@hilcorp.com 907-564-4506 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: Tubing Size: PRESENT WELL CONDITION SUMMARY Scott Warner, Operations Engineer AOGCC USE ONLY 8,430psi Tubing Grade: 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 FEE-CIRI, ADL 384372 209-168 50-133-20588-00-00 Hilcorp Alaska, LLC Proposed Pools: L-80 / 12.6# TVD Burst 2,299' 1,441'2,520' Size 98' 2,520' MD 4-1/2" 1,482 - 1,958 5,750psi 98'98' Length May 1, 2025 7,418'5,184' 4-1/2" 4,182' Perforation Depth MD (ft): 2,759 - 4,505 3800 Centerpoint Drive, Suite 1400 Anchorage, Alaska 99503 Ninilchik Unit Paxton 3CO 701C Same 553psi 4,600' Other: CTCO, N2 ZXP Liner Top Pkr; N/A 2,271' MD / 1,404' TVD; N/A 4,179' 4,600' 2,003' Ninilchik Beluga-Tyonek Gas 20" 9-5/8" 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 7:48 am, Apr 18, 2025 Digitally signed by Noel Nocas (4361) DN: cn=Noel Nocas (4361) Date: 2025.04.17 14:52:22 - 08'00' Noel Nocas (4361) 325-241 BJM 4/24/25 Perforate CT BOP test to 3000 psi Perforations are prohibited above the top of the Beluga-Tyonek Gas Pool. SFD 4/21/2025 DSR-4/24/25 X 10-404 *&: Jessie L. Chmielowski Digitally signed by Jessie L. Chmielowski Date: 2025.04.24 14:00:40 -08'00'04/24/25 RBDMS JSB 042525 Well: Paxton 3 Well Name: Paxton 3 API Number: 50-133-20588-00-00 Current Status: Shut In Gas Producer Permit to Drill Number: 209-168 Regulatory Contact: Donna Ambruz (907) 777-8305 (O) First Call Engineer: Scott Warner (907) 564-4506 (O) (907) 830-8863 (C) Second Call Engineer: Chad Helgeson (907) 777-8405 (O) (907) 229-4824 (C) Maximum Expected BHP:715 psi @ 1627’ TVD Based on 0.44 psi/ft Max. Potential Surface Pressure:553 psi Based on 0.1 psi/ft gas gradient to surface Applicable Frac Gradient:.79 psi/ft using 15.2 ppg EMW FIT at the surface casing shoe Shallowest Allowable Perf TVD:MPSP/(0.79-0.1) = 553 psi / 0.69 = 801‘ TVD (Will not perforate above the surface casing shoe or top of pool) Top of Applicable Gas Pool:2580’ MD/ 1449’ TVD Well Status:Offline gas producer Brief Well Summary Paxton-03 is an offline producer. Perforations were added in March 2024 which loaded the well up and has since been shut in. The purpose of this work/sundry is to set a plug above the perforations that were added in 2024 and add perforations to the Beluga 5 through Beluga 20 sands to increase production. Notes Regarding Wellbore Condition x Inclination o > 70° inclination starting at 1600’ MD. o Sail angle of 80° from 1900’ to 3700’ MD, then rolls over to 35° by PBTD o Able to free fall from 4100’ MD to PBTD during prior tractor operations x Min ID o 3.80” Stage cement collar at 3261’ MD 4.5” overshot at 3264’ MD x Tags o CBL in 2010 showed good cement up to 6430’, patchy cement from 4600’-6430’, and good cement above 4600’ o 3-14-24: Eline set a RPB on tractor at 4600’ MD. Tractor required from ~1850’- 4100’ MD Procedure: Coil Tubing Drift/Potential Cleanout 1. MIRU CTU 2. PT BOPE to 250 psi low / 3,000 psi high 3. Drift with nozzle expecting a potential cleanout to RBP at 4600’ a. Before RIH, confirm distance from coil connector to bottom of nozzle. This will be used for end of pipe calculations when running the plug b. Tag plug at 4600’, flag pipe and correct mechanical/electric counter as needed. c. Perform cleanout with 6% KCL/N2 mixture if needed Well: Paxton 3 4. RIH and set CIBP at ~4227’ MD a. Collars are at 4206 & 4247, targeting midpoint of the joint b. Before RIH, confirm distance from end of pipe to top of plug c. Adjust depths based off painted flag in prior run and new length for plug toolstring 5. Circulate fluid out of wellbore with N2 6. Trap 2000 psi on the well- consult with OE prior to trapping pressure 7. RDMO Eline/Tractor Perforations 1. MIRU Eline/Tractor and pressure control equipment 2. PT lubricator to 250 psi low/ 2,500 psi high 3. Perforate and test the below sands from bottom up with tractor due to deviation: Below are proposed targeted sands in order of testing (bottom/up), but additional sand may be added depending on results of these perfs, between the proposed top and bottom perfs Sand Top MD Btm MD Top TVD Btm TVD Interval BEL 9 ±2,590' ±2,604' ±1,451' ±1,454' ±14' BEL 12 ±2,915' ±2,929' ±1,508' ±1,511' ±14' BEL 13 ±2,986' ±3,001' ±1,521' ±1,523' ±15' BEL 13 ±3,007' ±3,033' ±1,524' ±1,528' ±26' BEL 16 ±3,171' ±3,221' ±1,552' ±1,560' ±50' BEL 16 ±3,270' ±3,332' ±1,568' ±1,579' ±62' BEL 16 ±3,342' ±3,354' ±1,580' ±1,583' ±12' BEL 20 ±3,614' ±3,624' ±1,627' ±1,628' ±10' x Current perforations will not flow to surface indicating the well is dead. Maximum potential pressure will come from new perforations added in this sundry. a) Proposed perfs are also shown on the proposed schematic in red font b) Correlate using Open Hole Correlation Log provided by Geologist. Send the correlation pass to the Operations Engineer, Reservoir Engineer, and Geologist for confirmation c) Use Gamma/CCL to correlate d) Record Tubing pressures before and after each perforating run at 5 min, 10 min, and 15 min intervals post perf shot (If using switched guns, wait 10 min between shots) e) Pending well production, all perf intervals may not be completed f) If any zone produces sand and/or water or needs isolated, RIH and set plug above the perforations OR patch across the perforations g) If necessary, use nitrogen to pressure up well during perforating or to depress water prior to setting a plug above perforations 4. RDMO a. If necessary, run cap string to aid with water production if encountered post perforating. Well: Paxton 3 Attachments: 1. Current Schematic 2. Proposed Schematic 3. Coil Tubing BOP diagram 4. Standard Well Procedure- N2 Operations _____________________________________________________________________________________ Updated by SRW 04-09-24 SCHEMATIC Ninilchik Field Well:Paxton 03 PTD: 209-168 API#: 50-133-20588-00-00 RKB=21’ AGL RKB=21’ AGL CASING DETAIL Size Type Wt/ Grade/ Conn ID Top Btm 20"Conductor 129# / X-56 / N/A N/A Surf 98' 9-5/8"Surface 40# / L-80 / BTC 8.835 Surf 2,520' 4-1/2"Production 12.6# / L-80 / IBT-M 3.958 2,234'7,418' TUBING DETAIL 4-1/2"Tie-Back 12.6# / L-80 / Hyd 563 3.958 Surf 2,299' JEWELRY DETAIL No Depth MD Depth TVD ID Item 1 1,508’1,237’Chemical Injection Mandrel 2 2,271’1,404’>3.80 Baker 4-1/2” ZXP Liner Top Packer with polish bore 3 2,274’1,405’>3.80 Liner Hanger 4 3,261’1,567’3.80” (milled)Stage Cement Collar 5 3,264’1,567’3.80” (Milled)4-1/2” Overshot w/ 4’ Swallow 6 4,600’2,003’N/A Maverick Retrievable Bridge Plug (Set on 3/14/24) PERFORATION DETAIL Zone Top MD Btm MD Top TVD Btm TVD Length Perf Date Status Bel 10L 2,759’2,779’1,482’1,485’20’9/15/2021 Open Bel 10L 2,780’2,831’1,486’1,494’51’9/17/2021 Open Bel 10L 2,832’2,863’1,495’1,500’31’9/17/2021 Open Bel 15 3,115’3,130’1,542’1,545’15’9/15/2021 Open Bel 20U 3,545’3,571’1,615’1,619’26’9/14/2021 Open Bel 20U 3,577’3,603’1,620’1,625’26’9/14/2021 Open Bel44 4,273'4,290'1,850'1,859'17'3/10/24 Open Bel46 4,355'4,368'1,888'1,895'13'3/10/24 Open Bel48 4,490'4,505'1,951'1,958'15'3/10/24 Open Bel49 4,650'4,660'2,029'2,035'10'3/10/24 Isolated Bel50 4,749'4,759'2,084'2,091'10'3/10/24 Isolated Bel51 4,771'4,786'2,096'2,106'15'3/10/24 Isolated Bel58A 5,214'5,234'2,396'2,412'20'3/9/24 Isolated Bel59 5,309'5,321'2,470'2,480'12'3/9/24 Isolated Bel60 5,345'5,365'2,498'2,515'20'3/9/24 Isolated Bel72 5,468'5,478'2,597'2,606'10'3/8/24 Isolated Bel72 5,488'5,498'2,613'2,623'10'3/8/24 Isolated Bel74 5,561'5,570'2,673'2,681'9'3/8/24 Isolated Bel82 5,672'5,686'2,764'2,775'14'3/8/24 Isolated Bel 105 6,370’6,379’3,331’3,338’9’10/24/2020 Isolated Bel 106 6,388’6,396’3,345’3,352’8’10/23/2020 Isolated Bel 110 6,432'6,452'3,381'3,397'20'4/18/2010 Isolated Bel 120 6,534'6,542'3,464'3,471'8'4/20/2010 Isolated Bel 131 6,627'6,632'3,540'3,544'5'4/20/2010 Isolated Bel 134 6,708'6,715'3,605'3,611'7'4/18/2010 Isolated Bel 134 6,722'6,730'3,617'3,623'8'4/18/2010 Isolated OPEN HOLE / CEMENT DETAIL 9-5/8" 12-1/4" hole cemented with 263 bbls of 12 ppg Type-1 cement. 106 bbls returned to surface 4-1/2" Liner 8-1/2" hole Cemented with 78 bbls of 12.5 ppg Class G Lead and 226 bbls of 15.8 ppg Class G Tail. 100 bbls to surface. Stage #2 cemented with 65 bbls 15.8 ppg Class G. 4/15/10 CBL showed good cement up to 6430’ MD. Patchy cement from 4600’ – 6430’ MD, and good cement above 4600’ MD. MISC. INFORMATION Short Joints at 4,902’ & 6,403’ MD Well Goes >70deg inc below 1600’ MD _____________________________________________________________________________________ Updated by SRW 04-17-24 PROPOSED SCHEMATIC Ninilchik Field Well: Paxton 03 PTD: 209-168 API#: 50-133-20588-00-00 RKB=21’ AGL PBTD = 7,290’MD / 4,078’ TVD TD = 7,414’ MD / 4,179’ TVD 4 2/3 20” 9-5/8” 1 5 4-1/2” BEL 105 BEL 106 BEL 15 BEL 20 BEL 10 BEL 44-82 BEL 110 BEL 131-134 BEL 120 6 5a CASING DETAIL Size Type Wt/ Grade/ Conn ID Top Btm 20" Conductor 129# / X-56 / N/A N/A Surf 98' 9-5/8" Surface 40# / L-80 / BTC 8.835 Surf 2,520' 4-1/2" Production 12.6# / L-80 / IBT-M 3.958 2,234' 7,418' TUBING DETAIL 4-1/2" Tie-Back 12.6# / L-80 / Hyd 563 3.958 Surf 2,299' JEWELRY DETAIL No Depth MD Depth TVD ID Item 1 1,508’ 1,237’ Chemical Injection Mandrel 2 2,271’ 1,404’ >3.80 Baker 4-1/2” ZXP Liner Top Packer with polish bore 3 2,274’ 1,405’ >3.80 Liner Hanger 4 3,261’ 1,567’ 3.80” (milled) Stage Cement Collar 5 3,264’ 1,567’ 3.80” (Milled) 4-1/2” Overshot w/ 4’ Swallow 5a 4,227’ 1,829’ N/A CIBP 6 4,600’ 2,003’ N/A Maverick Retrievable Bridge Plug (Set on 3/14/24) PERFORATION DETAIL Zone Top MD Btm MD Top TVD Btm TVD Length Perf Date Status BEL 9 ±2,590'±2,604'±1,451'±1,454'±14'TBD Proposed Bel 10L 2,759’2,779’1,482’1,485’20’9/15/2021 Open Bel 10L 2,780’2,831’1,486’1,494’51’9/17/2021 Open Bel 10L 2,832’2,863’1,495’1,500’31’9/17/2021 Open BEL 12 ±2,915'±2,929'±1,508'±1,511'±14'TBD Proposed BEL 13 ±2,986'±3,001'±1,521'±1,523'±15'TBD Proposed BEL 13 ±3,007'±3,033'±1,524'±1,528'±26'TBD Proposed Bel 15 3,115’3,130’1,542’1,545’15’9/15/2021 Open BEL 16 ±3,171'±3,221'±1,552'±1,560'±50'TBD Proposed BEL 16 ±3,270'±3,332'±1,568'±1,579'±62'TBD Proposed Bel 20U 3,545’3,571’1,615’1,619’26’9/14/2021 Open Bel 20U 3,577’3,603’1,620’1,625’26’9/14/2021 Open BEL 20 ±3,614'±3,624'±1,627'±1,628'±10'TBD Proposed Bel44 4,273'4,290'1,850'1,859'17'3/10/24 Isolated Bel46 4,355'4,368'1,888'1,895'13'3/10/24 Isolated Bel48 4,490'4,505'1,951'1,958'15'3/10/24 Isolated Bel49 4,650'4,660'2,029'2,035'10'3/10/24 Isolated Bel50 4,749'4,759'2,084'2,091'10'3/10/24 Isolated Bel51 4,771'4,786'2,096'2,106'15'3/10/24 Isolated Bel58A 5,214'5,234'2,396'2,412'20'3/9/24 Isolated Bel59 5,309'5,321'2,470'2,480'12'3/9/24 Isolated Bel60 5,345'5,365'2,498'2,515'20'3/9/24 Isolated Bel72 5,468'5,478'2,597'2,606'10'3/8/24 Isolated Bel72 5,488'5,498'2,613'2,623'10'3/8/24 Isolated Bel74 5,561'5,570'2,673'2,681'9'3/8/24 Isolated Bel82 5,672'5,686'2,764'2,775'14'3/8/24 Isolated Bel 105 6,370’6,379’3,331’3,338’9’10/24/2020 Isolated Bel 106 6,388’6,396’3,345’3,352’8’10/23/2020 Isolated Bel 110 6,432'6,452'3,381'3,397'20'4/18/2010 Isolated Bel 120 6,534'6,542'3,464'3,471'8'4/20/2010 Isolated Bel 131 6,627'6,632'3,540'3,544'5'4/20/2010 Isolated Bel 134 6,708'6,715'3,605'3,611'7'4/18/2010 Isolated Bel 134 6,722'6,730'3,617'3,623'8'4/18/2010 Isolated OPEN HOLE / CEMENT DETAIL 9-5/8" 12-1/4" hole cemented with 263 bbls of 12 ppg Type-1 cement. 106 bbls returned to surface 4-1/2" Liner 8-1/2" hole Cemented with 78 bbls of 12.5 ppg Class G Lead and 226 bbls of 15.8 ppg Class G Tail. 100 bbls to surface. Stage #2 cemented with 65 bbls 15.8 ppg Class G. 4/15/10 CBL showed good cement up to 6430’ MD. Patchy cement from 4600’ – 6430’ MD, and good cement above 4600’ MD. MISC. INFORMATION Short Joints at 4,902’ & 6,403’ MD Well Goes >70deg inc below 1600’ MD 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. 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: 6/21/2024 To: Alaska Oil & Gas Conservation Commission Natural Resource Technician 333 W 7th Ave Suite 100 Anchorage, AK 99501 SFTP DATA TRANSMITTAL T#20240621 Well API #PTD #Log Date Log Company Log Type AOGCC Eset# BRU 241-23 50283201910000 223061 5/17/2024 AK E-LINE Perf KBU 43-07Y 50133206250000 214019 10/19/2023 AK E-LINE PLT END 2-72 50029237810000 224016 6/10/2024 HALLIBURTON RBT Paxton 3 50133205880000 209168 3/14/2023 AK E-LINE GPT/JBGR/RBP PBU E-12A 50029207820100 216127 6/4/2024 HALLIBURTON RBT PBU-GNI-03 50029228200000 197189 5/21/2024 READ CaliperSurvey Please include current contact information if different from above. T38984 T38985 T38986 T38987 T38988 T38989 Paxton 3 50133205880000 209168 3/14/2023 AK E-LINE GPT/JBGR/RBP Gavin Gluyas Digitally signed by Gavin Gluyas Date: 2024.06.21 13:35:29 -08'00' 1. Operations Susp Well Insp Plug Perforations Fracture Stimulate Pull Tubing Operations shutdown Performed: Install Whipstock Perforate Other Stimulate Alter Casing Change Approved Program Mod Artificial Lift Perforate New Pool Repair Well Coiled Tubing Ops Other: Development Exploratory 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 7,414 feet 4,600 feet true vertical 4,179 feet N/A feet Effective Depth measured 4,600 feet 2,271 feet true vertical 2,003 feet 1,404 feet Perforation depth Measured depth See Schematic feet True Vertical depth See Schematic feet Tubing (size, grade, measured and true vertical depth)4-1/2" 12.6# / L-80 2,299 MD 1,408 TVD 2,271 MD Packers and SSSV (type, measured and true vertical depth)Baker ZXP Pkr 1,404 TVD SSSV: 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: 5,750psi2,520'1,441' Burst Collapse 3,090psi Production Liner 5,184' Casing Structural 4-1/2"7,418'4,182' 98'Conductor Surface Intermediate 20" 9-5/8" 98' 2,520' measured TVD 8,430psi STATE OF ALASKA ALASKA OIL AND GAS CONSERVATION COMMISSION REPORT OF SUNDRY WELL OPERATIONS 201-168 50-133-20588-00-00 3800 Centerpoint Drive, Suite 1400 Anchorage, Alaska 99503 Hilcorp Alaska, LLC N/A 5. Permit to Drill Number:2. Operator Name 4. Well Class Before Work: Fee Lease Tract 163, ADL 384372 Ninilchik / Beluga-Tyonek Gas Ninilchik Unit Paxton 3 Plugs Junk measured Length measured true vertical Packer Representative Daily Average Production or Injection Data Casing Pressure Tubing Pressure 14. Attachments (required per 20 AAC 25.070, 25.071, & 25.283) 0 Gas-Mcf MD 23 Size 98' 0 235 0 774 73 Scott Warner, Operations Engineer 324-133 Sr Pet Eng: 7,500psi Sr Pet Geo:Sr Res Eng: WINJ WAG 540 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 N/A scott.warner@hilcorp.com 907-564-4506 p k ft t Fra O s 6. A G L PG , Form 10-404 Revised 10/2022 Due Within 30 days of Operations Submit in PDF format to aogcc.permitting@alaska.gov By Samantha Coldiron at 9:17 am, Apr 15, 2024 Digitally signed by Noel Nocas (4361) DN: cn=Noel Nocas (4361) Date: 2024.04.12 17:54:27 - 08'00' Noel Nocas (4361) DSR-4/23/24 209-168 RBDMS JSB 041924 JSB Page 1/2 Well Name: NINU Paxton 03 Report Printed: 4/9/2024www.peloton.com Well Operations Summary Jobs Actual Start Date:3/6/2024 End Date: Report Number 1 Report Start Date 3/6/2024 Report End Date 3/6/2024 Operation M/U 2.50" tractor, GPT w/ SJ and 3.00" GR (34' OAL) Op check tools. PU tools and lubricator, move to well head. PT 250 psi/2000 psi. Pass. Open swab (FTP 72 psi/560 mcfd) RIH. Free fall to 1850'. Go online with tractor @ 70 fpm. Tractor to 4100', offline w/ tractor. Power up GPT and RIH at 60 fpm running down pass. Tag PBTD at 6822' (corrected), 65' above last tag at 6887' in 9/21. PU, start logging up pass. Located gas cut fluid level at 3650' and lighter gradient up to 3250'. No fluid to surface. OOH. Secure well, RDMO E-line and tractor. Leave location. Report Number 2 Report Start Date 3/8/2024 Report End Date 3/8/2024 Operation MIRU YJ ELine and Altus tractor services, PTW and PJSM. M/U tractor and GR/CCL, op check tools. M/U 9' & 14' 2-3/8 (5spf) switch guns (CCL_TS -9' & 20.5'). PU with lubricator, move to well and PT 250 psi / 2000 psi. Pass. FTP - 72 psi / 560 mcfd. SI well and RIH. Free fall to 1850', start tractoring at 60 fpm to 4100' turn off tractor and RIH, correlate from 6000'-4800', confirm on depth, position and shoot BEL_82 (5672'-5686'). Start: 141 psi 10 min: 157 psi. PU and shoot BEL_74 (5561'-5570'). Start: 157 psi 10 min: 219 psi. POOH. OOH. All shots fired. M/U Gun Run #2 (10' & 10'). Op check tractor & GR/CCL, tally CCL-T.S. (9'-20.5'). Open swab (291 psi) RIH, tractor on at 1920' and off at 4100', RIH, correlate, confirm on depth, position and shoot BEL_72 (5488'-5498'). Start: 236 psi 10 min: 231 psi. PU and shoot BEL_72 (5468' -5478'). Start: 231 psi 10 min: 231 psi. POOH. OOH. All shots fired. M/U Gun Run #3 (20'). Op check tractor & GR/CCL. Tally CCL T.S.-8.5'. PU and RIH. Fall to 1850', tractor on to 4100', tractor off, RIH, correlate, confirm on depth, position and shoot BEL_60 (5345'-5365'). No indication of detonation. POOH. OOH. Perf gun no-fire. Break gun down, remove detonator, troubleshoot misfire issue. Determined electrical connection in E-line shock-sub broke during tool to gun make up. Secure tools and well, SDFN and turn well over to production to flow through night. Report Number 3 Report Start Date 3/9/2024 Report End Date 3/9/2024 Operation YJ E-Line and Altus arrive, obtain PTW and hold PJSM. Rig back up on well, M/U tractor and tools, op check and M/U 2-3/8" (5spf) x 20' perf gun. (8.5' CCL T.S.). PU tools, lubricator and move to well. Tree valve crew arrived and serviced swab valve. FTP- 72 psi / 450 mcfd. SI well, open swab and RIH. Free fall to 1830',on line with tractor to 4100', offline with tractor and RIH to 6000'. Correlate, confirm on depth, position and perforate BEL_60 (5345'-5365'). Start 223 psi 10 min: 222 psi. POOH. OOH. All shots fired. Op check tractor & GR/CCL. M/U Gun Run #5 (12') to tractor/tools (12' CCL-T.S.). P/U and RIH. Turn on GR/CCL and lose communication with logging tool at 600', POOH. LD lub and tool string. Remove gun and trouble shoot tractor and accessories. Checked components individually and op checked tool string x3 times. Nothing conclusive was discovered troubleshooting. M/U tools, P/U move to well. Open swab, RIH to 1950'. Tractor on to 4100', shut down and RIH to 5600' and log correlation up to 5100'. Confirm on depth and shoot BEL_59 (5309'-5321'). Start: 218 psi 10 min: 218 psi. POOH OOH. All shots fired. OP check tractor and GR/CCL. M/U Gun Run #6 -20' gun (10' - CCL T.S.). P/U and RIH, tractor from 1850'-4100', RIH, correlate, confirm on depth, position and shoot BEL_58A interval (5214'-5234'). Start: 218 psi 10 min: 219 psi. POOH. LD tools, lubricator, all shots fired. Drop soap, secure well and SDFN. Return PTW and leave location. Handover to production to flow well overnight. Report Number 4 Report Start Date 3/10/2024 Report End Date 3/10/2024 Operation YJ E-line & Altus tractor arrive PTW and PJSM. Rig back on well, Op check tractor and GR/CCL. M/U 15' and 10' 2-3/8" (5spf) switch guns - Gun Run #7. Tally CCL-T.S. 9' and 20.5'. P/U tools and lubricator and move to well. FTP - 71 psi / 309 mcfd. SI well and RIH. Tractor on at 1972' to 4100'. Tractor offline, RIH,correlate, confirm on depth, position and perforate the BEL_51 sand (4771'-4786') (15'). Start: 230 psi /10 min: 231 psi. P/U and shoot the BEL_50 sand (4749'-4759') (10'). Start: 231 psi / 10 min: 232 psi. POOH. OOH. All shots fired. M/U 10' and 15' switch guns Gun Run #8. Tally CCL-T.S. (9' & 30.5'). P/U and RIH, correlate, confirm on depth, position and shoot BEL_49 (4650'-4660'). Start: 236 psi / 10 min: 236 psi. P/U and shoot the BEL_48 (4490' - 4505'). Start: 236 psi. POOH. BEL_48 (No-fire). OOH. Bottom gun fired (10') BEL_49. No-fire on top gun (15') BEL_48. Possible leaking plug in switch gun port sub. Download 17' gun to 15'. M/U Gun Run #9 (15' CCL T.S.). PU and RIH, correlate, confirm on depth and perforate BEL_48 (4490'-4505') Start: 236 psi /10 min: 238 psi. POOH. OOH. All shots fired. M/U Gun Run #10 (13'). (CCL - T.S. 11'). PU, RIH, correlate, confirm on depth and shoot BEL_46 interval (4355'-4368'). Start: 236 psi / 10 min: 238 psi. POOH. OOH. All shots fired. M/U 17' gun (CCL-T.S. - 13'). PU, RIH, correlate, confirm on depth, position and shoot BEL_44 (4273'-4290'). Start: 243 psi / 10 min: 320 psi. POOH. All shots fired, drop 3 soap sticks, secure well, RDMO E-line and tractor services. Job complete. Turn well over to production. Report Number 5 Report Start Date 3/12/2024 Report End Date 3/13/2024 API: 50-133-20588-00-00 Field: Ninilchik Sundry #: 324-113 State: Alaska Rig/Service:Permit to Drill (PTD) #:209-168 Page 2/2 Well Name: NINU Paxton 03 Report Printed: 4/9/2024www.peloton.com Well Operations Summary Operation AK E-line and Altus tractor crews arrive, PTW, PJSM. Wait on crane (3 hrs.) to get pulled out of ditch. Spot and RU crane, lift and move well house to access well. Spot and RU tractor and e-line unit. M/U tractor and PL tool string (Temp, Press, spinners, water-holdup and centralizers). Move to well and PT 250 psi / 2000 psi. Pass. Open swab, (FTP-72 psi / 600-675 mcfd). RIH to 1930', tractor to 4100', power up PL tools and RIH at 40 fpm. Tagged PBTD at 6680' (142' above tag on 3-6-24 @ 6822'). Logged up to 2600' at 40 fpm. Tractor down to 4100'and continued dynamic up and down passes at 80 and 120 fpm. Drop down to 6660' and record station stops, 23 total up to 2700'. POOH. Final FTP 75 psi / 350 mcfd. Secure well, drop 3 soap sticks, and rig back e-line and tractor services. W/O PPROF analysis. Report Number 6 Report Start Date 3/14/2024 Report End Date 3/14/2024 Operation AKE-line & Altus obtain PTW and hold PJSM. Rig back on well and M/U 2.50" tractor, GPT and junk basket with 3.75" gauge ring. PU and stab on well. SITP - 296 psi. RIH, tractor 1780'-4200'. Power up GPT and log down pass. Tag PBTD at 6668' (12' above tag on 3-12-24). Log up pass to surface - FL at 2600'. OOH. Small sample of gray putty like substance retrieved in JB. W/O setting tool and RBP hot shot from Kenai. On arrival M/U tractor, GR/CCL, Baker #10 setting tool and Brace Oil Tools "Maverick" Retrievable Bridge Plug (3.75" OD). (14' CCL to top of plug - 15' to elements and 17' to btm). Open swab, RIH, correlate and set plug at 4600' (RKB). Good indication of detonation and set. POOH. OOH. Shear stud on setting tool confirmed sheared. L/D tools and lubricator, secure well. Reset well house, RDMO E-line and tractor services. Turm well over to production. API: 50-133-20588-00-00 Field: Ninilchik Sundry #: 324-113 State: Alaska Rig/Service: _____________________________________________________________________________________ Updated by SRW 04-09-24 SCHEMATIC Ninilchik Field Well:Paxton 03 PTD: 209-168 API#: 50-133-20588-00-00 RKB=21’ AGL RKB=21’ AGL CASING DETAIL Size Type Wt/ Grade/ Conn ID Top Btm 20"Conductor 129# / X-56 / N/A N/A Surf 98' 9-5/8"Surface 40# / L-80 / BTC 8.835 Surf 2,520' 4-1/2"Production 12.6# / L-80 / IBT-M 3.958 2,234'7,418' TUBING DETAIL 4-1/2"Tie-Back 12.6# / L-80 / Hyd 563 3.958 Surf 2,299' JEWELRY DETAIL No Depth MD Depth TVD ID Item 1 1,508’1,237’Chemical Injection Mandrel 2 2,271’1,404’>3.80 Baker 4-1/2” ZXP Liner Top Packer with polish bore 3 2,274’1,405’>3.80 Liner Hanger 4 3,261’1,567’3.80” (milled)Stage Cement Collar 5 3,264’1,567’3.80” (Milled)4-1/2” Overshot w/ 4’ Swallow 6 4,600’2,003’N/A Maverick Retrievable Bridge Plug (Set on 3/14/24) PERFORATION DETAIL Zone Top MD Btm MD Top TVD Btm TVD Length Perf Date Status Bel 10L 2,759’2,779’1,482’1,485’20’9/15/2021 Open Bel 10L 2,780’2,831’1,486’1,494’51’9/17/2021 Open Bel 10L 2,832’2,863’1,495’1,500’31’9/17/2021 Open Bel 15 3,115’3,130’1,542’1,545’15’9/15/2021 Open Bel 20U 3,545’3,571’1,615’1,619’26’9/14/2021 Open Bel 20U 3,577’3,603’1,620’1,625’26’9/14/2021 Open Bel44 4,273'4,290'1,850'1,859'17'3/10/24 Open Bel46 4,355'4,368'1,888'1,895'13'3/10/24 Open Bel48 4,490'4,505'1,951'1,958'15'3/10/24 Open Bel49 4,650'4,660'2,029'2,035'10'3/10/24 Isolated Bel50 4,749'4,759'2,084'2,091'10'3/10/24 Isolated Bel51 4,771'4,786'2,096'2,106'15'3/10/24 Isolated Bel58A 5,214'5,234'2,396'2,412'20'3/9/24 Isolated Bel59 5,309'5,321'2,470'2,480'12'3/9/24 Isolated Bel60 5,345'5,365'2,498'2,515'20'3/9/24 Isolated Bel72 5,468'5,478'2,597'2,606'10'3/8/24 Isolated Bel72 5,488'5,498'2,613'2,623'10'3/8/24 Isolated Bel74 5,561'5,570'2,673'2,681'9'3/8/24 Isolated Bel82 5,672'5,686'2,764'2,775'14'3/8/24 Isolated Bel 105 6,370’6,379’3,331’3,338’9’10/24/2020 Isolated Bel 106 6,388’6,396’3,345’3,352’8’10/23/2020 Isolated Bel 110 6,432'6,452'3,381'3,397'20'4/18/2010 Isolated Bel 120 6,534'6,542'3,464'3,471'8'4/20/2010 Isolated Bel 131 6,627'6,632'3,540'3,544'5'4/20/2010 Isolated Bel 134 6,708'6,715'3,605'3,611'7'4/18/2010 Isolated Bel 134 6,722'6,730'3,617'3,623'8'4/18/2010 Isolated OPEN HOLE / CEMENT DETAIL 9-5/8" 12-1/4" hole cemented with 263 bbls of 12 ppg Type-1 cement. 106 bbls returned to surface 4-1/2" Liner 8-1/2" hole Cemented with 78 bbls of 12.5 ppg Class G Lead and 226 bbls of 15.8 ppg Class G Tail. 100 bbls to surface. Stage #2 cemented with 65 bbls 15.8 ppg Class G. 4/15/10 CBL showed good cement up to 6430’ MD. Patchy cement from 4600’ – 6430’ MD, and good cement above 4600’ MD. MISC. INFORMATION Short Joints at 4,902’ & 6,403’ MD Well Goes >70deg inc below 1600’ MD 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: 4/4/2024 To: Alaska Oil & Gas Conservation Commission Natural Resource Technician 333 W 7th Ave Suite 100 Anchorage, AK 99501 SFTP DATA TRANSMITTAL T#20240404 Well API #PTD #Log Date Log Company Log Type AOGCC Eset# BCU 19RD 50133205790100 219188 2/23/2024 YELLOW JACKET GPT-PERF BRU 241-23 50283201910000 223061 11/25/2023 AK E-LINE Perf HV B-13 50231200320000 207151 3/11/2024 YELLOW JACKET GPT KALOTSA 6 50133206850000 219114 3/2/2024 YELLOW JACKET PERF KU 13-06A 50133207160000 223112 3/13/2024 YELLOW JACKET GPT-PERF KU 21-06RD 50133100900100 201097 3/19/2024 YELLOW JACKET GPT-PERF END MPI 2-62 50029216480000 186158 2/14/2024 YELLOW JACKET PERF MPU G-18 50029231940000 204020 3/21/2024 READ Caliper Survey MPU G-18 50029231940000 204020 3/9/2024 AK E-LINE HoistCutter MPU I-24 50029237780000 224001 3/11/2024 AK E-LINE CBL NCIU A-18 50883201890000 223033 12/20/2023 AK E-LINE Perf NCIU A-18 50883201890000 223033 12/18/2024 AK E-LINE GPT/Plug/Perf PAXTON 3 50133205880000 209168 3/6/2024 YELLOW JACKET GPT PAXTON 3 50133205880000 209168 3/8/2024 YELLOW JACKET PERF PAXTON 3 50133205880000 209168 3/12/2024 AK E-LINE PPROF PAXTON 7 50133206430000 214130 2/26/2024 YELLOW JACKET PERF PBU 09-52 50029236180000 218168 3/24/2024 HALLIBURTON PPROF SD-06 50133205820000 208160 2/20/2024 YELLOW JACKET PERF SRU 222-33 50133207150000 223100 12/19/2023 AK E-LINE Perf Please include current contact information if different from above T38683 T38684 T38685 T38686 T38689 T38687 T38690 T38691 T38691T38692 T38963 T38963 T38694 T38694 T38694 T38695 T38696 T38697 T38698 PAXTON 3 50133205880000 209168 3/6/2024 YELLOW JACKET GPT PAXTON 3 50133205880000 209168 3/8/2024 YELLOW JACKET PERF PAXTON 3 50133205880000 209168 3/12/2024 AK E-LINE PPROF Meredith Guhl Digitally signed by Meredith Guhl Date: 2024.04.09 13:48:29 -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 Other: Install Cap String, N2 2. Operator Name:4. Current Well Class: 5. Permit to Drill Number: Exploratory Development 3. Address:Stratigraphic Service 6. API Number: 7. If perforating:8. Well Name and Number: What Regulation or Conservation Order governs well spacing in this pool? Yes No 9. Property Designation (Lease Number):10. Field: 11. Total Depth MD (ft):Total Depth TVD (ft): Effective Depth MD: Effective Depth TVD: Junk (MD): 7,414'N/A Casing Collapse Structural Conductor Surface 3,090psi Intermediate Production Liner 7,500psi 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 ZXP Liner Top Pkr; N/A 2,271' MD / 1,404' TVD; N/A 4,179'7,290'4,078' Ninilchik Beluga-Tyonek Gas 20" 9-5/8" See Attached Schematic 3800 Centerpoint Drive, Suite 1400 Anchorage, Alaska 99503 Paxton 3CO 701C Same 1337 psi N/A Length March 5, 2024 7,418'5,184' 4-1/2" 4,182' Perforation Depth MD (ft): 4-1/2" See Attached Schematic 5,750psi 98'98' 2,520' Size 77' 2,499' MD Hilcorp Alaska, LLC Proposed Pools: L-80 / 12.6# TVD Burst 2,299' 1,441' 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 Fee Lease Tract 163 209-168 50-133-20588-00-00 Tubing Size: PRESENT WELL CONDITION SUMMARY Scott Warner, Operations Engineer AOGCC USE ONLY 8,430psi Tubing Grade: scott.warner@hilcorp.com 907-564-4506 Noel Nocas, Operations Manager 907-564-5278 Suspension Expiration Date: Will perfs require a spacing exception due to property boundaries? Current Pools: MPSP (psi):Plugs (MD): 17. I hereby certify that the foregoing is true and the procedure approved herein will not be deviated from without prior written approval. Authorized Name and Digital Signature with Date: m n P s tc N 666 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 4:01 pm, Feb 27, 2024 Digitally signed by Noel Nocas (4361) DN: cn=Noel Nocas (4361) Date: 2024.02.26 09:36:26 - 09'00' Noel Nocas (4361) SFD 2/28/2024 Perforate , ADL 384372 SFD 10-404 324-113 SFD DSR-2/29/24MGR06MAR2024 * See attached email for revised perf interval. JLC 3/7/2024 Brett W. Huber, Sr. Digitally signed by Brett W. Huber, Sr. Date: 2024.03.07 08:51:47 -09'00'03/07/24 RBDMS JSB 030724 Well: Paxton 3 Well Name: Paxton 3 API Number: 50-133-20588-00-00 Current Status: Gas Producer Permit to Drill Number: 209-168 Regulatory Contact: Donna Ambruz (907) 777-8305 (O) First Call Engineer: Scott Warner (907) 564-4506 (O) (907) 830-8863 (C) Second Call Engineer: Chad Helgeson (907) 777-8405 (O) (907) 229-4824 (C) Maximum Expected BHP: 1731 psi @ 3936’ TVD Based on 0.44 psi/ft Max. Potential Surface Pressure:1337 psi Based on 0.1 psi/ft gas gradient to surface Applicable Frac Gradient: .79 psi/ft using 15.2 ppg EMW FIT at the surface casing shoe Shallowest Allowable Perf TVD: MPSP/(0.79-0.1) = 1337 psi / 0.69 = 1937‘ TVD Top of Applicable Gas Pool:2578’ MD/ 1459’ TVD Well Status: Online gas producer flowing at 420 mcfd, 3 bwpd, 85 psi FTP Brief Well Summary Paxton-03 is an online producer which is now producing below 450 mcfd. Perfs were added in October 2020 with a tractor and made multiple tags at 6918’ before perfing higher up hole. A cap string was run in April 2021 to help unload the well and stabilize production. In September 2021, the cap string was pulled and more perfs were added with e-coil which increased production by ~ 3 mmscfd which has steadily declined since. The purpose of this work/sundry is to add perforations to the Beluga 5 through Beluga 135 sands to increase production. Notes Regarding Wellbore Condition x Inclination o > 70° inclination starting at 1600’ MD. o Sail angle of 80° from 1900’ to 3700’ MD, then rolls over to 35° by PBTD o Able to free fall from 4500’ MD to PBTD during prior tractor operations x Tags o Fill was tagged during e-coil operations in September 2021 @ 6887’ o Fill was tagged during tractor operations in October 2020 @ 6918’ o CBL in 2010 showed good cement up to 6430’, patchy cement from 4600’-6430’, and good cement above 4600’ Procedure: 1. MIRU Eline and Tractor equipment 2. Pressure Test equipment to 2000 psi High\ 250 psi Low 3. Perforate and test the below sands from bottom up, tractor was necessary on last completed perfs due to deviation: Below are proposed targeted sands in order of testing (bottom/up), but additional sand may be added depending on results of these perfs, between the proposed top and bottom perfs Sand Top MD Btm MD Top TVD Btm TVD Interval Bel5 ±2,591' ±2,604' ±1,452' ±1,454' ±13' Bel5 ±2,625' ±2,638' ±1,457' ±1,460' ±13' Bel12 ±2,912' ±2,929' ±1,508' ±1,511' ±17' add perforations to the Beluga 5 through Beluga 135 sands to increase production. , equivalent to 4,459' MD SFD Shallowest proposed perf is above this. Sent note for clarification. -bjm Proposed perforations will lie within the Beluga/ Tyonek Gas Pool. Note: See my comment near the top of this page. SFD 1449' - top of gas pool. - mgr Well: Paxton 3 Bel13 ±2,986' ±3,001' ±1,520' ±1,523' ±15' Bel13 ±3,012' ±3,033' ±1,524' ±1,529' ±21' Bel16 ±3,174' ±3,214' ±1,552' ±1,559' ±40' Bel16 ±3,270' ±3,290' ±1,568' ±1,572' ±20' Bel16 ±3,304' ±3,324' ±1,574' ±1,578' ±20' Bel44 ±4,273' ±4,290' ±1,850' ±1,859' ±17' Bel46 ±4,355' ±4,368' ±1,888' ±1,895' ±13' Bel48 ±4,490' ±4,505' ±1,951' ±1,958' ±15' Bel49 ±4,649' ±4,660' ±2,029' ±2,035' ±11' Bel50 ±4,749' ±4,760' ±2,084' ±2,091' ±11' Bel51 ±4,771' ±4,786' ±2,096' ±2,106' ±15' Bel58A ±5,214' ±5,234' ±2,396' ±2,412' ±20' Bel59 ±5,309' ±5,321' ±2,470' ±2,480' ±12' Bel60 ±5,345' ±5,365' ±2,498' ±2,515' ±20' Bel72 ±5,467' ±5,478' ±2,597' ±2,606' ±11' Bel72 ±5,487' ±5,498' ±2,613' ±2,623' ±11' Bel74 ±5,561' ±5,570' ±2,673' ±2,681' ±9' Bel82 ±5,672' ±5,686' ±2,764' ±2,775' ±14' Bel93 ±6,020' ±6,037' ±3,046' ±3,061' ±17' Bel110 ±6,477' ±6,484' ±3,418' ±3,424' ±7' Bel135 ±6,791' ±6,803' ±3,673' ±3,683' ±12' Bel135 ±6,874' ±6,886' ±3,740' ±3,750' ±12' a) Proposed perfs are also shown on the proposed schematic in red font b) Correlate using Open Hole Correlation Log provided by Geologist. Send the correlation pass to the Operations Engineer, Reservoir Engineer, and Geologist for confirmation c) Use Gamma/CCL to correlate d) Record Tubing pressures before and after each perforating run at 5 min, 10 min, and 15 min intervals post perf shot (If using switched guns, wait 10 min between shots) e) Pending well production, all perf intervals may not be completed f) If any zone produces sand and/or water or needs isolated, RIH and set plug above the perforations OR patch across the perforations g) If necessary, use nitrogen to pressure up well during perforating or to depress water prior to setting a plug above perforations 4. RDMO a) If necessary, run cap string to aid with water production if encountered post perforating. Attachments: 1. Current Schematic 2. Proposed Schematic 3. Standard Well Procedure- N2 Operations _____________________________________________________________________________________ Updated by JLL 11/15/21 SCHEMATIC Ninilchik Field Well: Paxton 03 PTD: 209-168 API#: 50-133-20588-00-00 RKB=21’ AGL MISC. INFORMATION Short Joints at 4,902’ & 6,403’ MD Well Goes >70deg inc below 1600’ MD PBTD = 7,290’MD / 4,078’ TVD TD = 7,414’ MD / 4,179’ TVD 4 2/3 20” 9-5/8” 1 5 4-1/2” B-4 BEL 105 BEL 106 BEL 15 BEL 20 BEL 10 CASING DETAIL Size Type Wt/ Grade/ Conn ID Top Btm 20" Conductor 129# / X-56 / N/A N/A Surf 98' 9-5/8" Surface 40# / L-80 / BTC 8.835 Surf 2,520' 4-1/2" Production 12.6# / L-80 / IBT-M 3.958 2,234' 7,418' TUBING DETAIL 4-1/2" Tie-Back 12.6# / L-80 / Hyd 563 3.958 Surf 2,299' No Depth (MD) Depth (TVD) ID Item 1 1,508’ 1,237’ Chemical Injection Mandrel 2 2,271’ 1,404’ >3.80 Baker 4-1/2” ZXP Liner Top Packer with polish bore 3 2,274’ 1,405’ >3.80 Liner Hanger 4 3,261’ 1,567’ 3.80” (milled) Stage Cement Collar 5 3,264’ 1,567’ 3.80” (Milled) 4-1/2” Overshot w/ 4’ Swallow Zone Top (MD) Btm (MD) Top (TVD) Btm (TVD)Length Perf Date Status BEL 10L 2,759’2,779’1,482’1,485’20’09/15/21 Open BEL 10L 2,780’2,831’1,486’1,494’51’09/17/21 Open BEL 10L 2,832’2,863’1,495’1,500’31’09/17/21 Open BEL 15 3,115’3,130’1,542’1,545’15’09/15/21 Open BEL 20U 3,545’3,571’1,615’1,619’26’09/14/21 Open BEL 20U 3,577’3,603’1,620’1,625’26’09/14/21 Open BEL 105 6,370’6,379’3,331’3,338’9’10/24/2020 Open BEL 106 6,388’ 6,396’ 3,345’ 3,352’ 8’ 10/23/2020 Open B-4 6,432' 6,452' 3,381' 3,397' 20' 4/18/2010 Open 6,534'6,542'3,464'3,471' 8'4/20/2010 Open 6,627'6,632'3,540'3,544' 5'4/20/2010 Open 6,708'6,715'3,605'3,611' 7' 4/18/2010 Open 6,722'6,730'3,617'3,623' 8' 4/18/2010 Open OPEN HOLE / CEMENT DETAIL 9-5/8" 12-1/4" hole cemented with 263 bbls of 12 ppg Type-1 cement. 106 bbls returned to surface 4-1/2" Liner 8-1/2" hole Cemented with 78 bbls of 12.5 ppg Class G Lead and 226 bbls of 15.8 ppg Class G Tail. 100 bbls to surface. Stage #2 cemented with 65 bbls 15.8 ppg Class G. 4/15/10 CBL showed good cement up to 6430’ MD. Patchy cement from 4600’ – 6430’ MD, and good cement above 4600’ MD. _____________________________________________________________________________________ Updated by SRW 02/22/24 PROPOSED Ninilchik Field Well:Paxton 03 PTD: 209-168 API#: 50-133-20588-00-00 RKB=21’ AGL RKB=21’ AGL CASING DETAIL Size Type Wt/ Grade/ Conn ID Top Btm 20"Conductor 129# / X-56 / N/A N/A Surf 98' 9-5/8"Surface 40# / L-80 / BTC 8.835 Surf 2,520' 4-1/2"Production 12.6# / L-80 / IBT-M 3.958 2,234'7,418' TUBING DETAIL 4-1/2"Tie-Back 12.6# / L-80 / Hyd 563 3.958 Surf 2,299' JEWELRY DETAIL No Depth MD Depth TVD ID Item 1 1,508’1,237’Chemical Injection Mandrel 2 2,271’1,404’>3.80 Baker 4-1/2” ZXP Liner Top Packer with polish bore 3 2,274’1,405’>3.80 Liner Hanger 4 3,261’1,567’3.80” (milled)Stage Cement Collar 5 3,264’1,567’3.80” (Milled)4-1/2” Overshot w/ 4’ Swallow PERFORATION DETAIL Zone Top MD Btm MD Top TVD Btm TVD Length Perf Date Status Bel5 ±2,591'±2,604'±1,452'±1,454'±13'Proposed TBD Bel5 ±2,625'±2,638'±1,457'±1,460'±13'Proposed TBD Bel 10L 2,759’2,779’1,482’1,485’20’9/15/2021 Open Bel 10L 2,780’2,831’1,486’1,494’51’9/17/2021 Open Bel 10L 2,832’2,863’1,495’1,500’31’9/17/2021 Open Bel12 ±2,912'±2,929'±1,508'±1,511'±17'Proposed TBD Bel13 ±2,986'±3,001'±1,520'±1,523'±15'Proposed TBD Bel13 ±3,012'±3,033'±1,524'±1,529'±21'Proposed TBD Bel 15 3,115’3,130’1,542’1,545’15’9/15/2021 Open Bel16 ±3,174'±3,214'±1,552'±1,559'±40'Proposed TBD Bel16 ±3,270'±3,290'±1,568'±1,572'±20'Proposed TBD Bel16 ±3,304'±3,324'±1,574'±1,578'±20'Proposed TBD Bel 20U 3,545’3,571’1,615’1,619’26’9/14/2021 Open Bel 20U 3,577’3,603’1,620’1,625’26’9/14/2021 Open Bel44 ±4,273'±4,290'±1,850'±1,859'±17'Proposed TBD Bel46 ±4,355'±4,368'±1,888'±1,895'±13'Proposed TBD Bel48 ±4,490'±4,505'±1,951'±1,958'±15'Proposed TBD Bel49 ±4,649'±4,660'±2,029'±2,035'±11'Proposed TBD Bel50 ±4,749'±4,760'±2,084'±2,091'±11'Proposed TBD Bel51 ±4,771'±4,786'±2,096'±2,106'±15'Proposed TBD Bel58A ±5,214'±5,234'±2,396'±2,412'±20'Proposed TBD Bel59 ±5,309'±5,321'±2,470'±2,480'±12'Proposed TBD Bel60 ±5,345'±5,365'±2,498'±2,515'±20'Proposed TBD Bel72 ±5,467'±5,478'±2,597'±2,606'±11'Proposed TBD Bel72 ±5,487'±5,498'±2,613'±2,623'±11'Proposed TBD Bel74 ±5,561'±5,570'±2,673'±2,681'±9'Proposed TBD Bel82 ±5,672'±5,686'±2,764'±2,775'±14'Proposed TBD Bel93 ±6,020'±6,037'±3,046'±3,061'±17'Proposed TBD Bel 105 6,370’6,379’3,331’3,338’9’10/24/2020 Open Bel 106 6,388’6,396’3,345’3,352’8’10/23/2020 Open Bel 110 6,432'6,452'3,381'3,397'20'4/18/2010 Open Bel 110 ±6,476'±6,483'±3,417'±3,423'±7'Proposed TBD Bel 120 6,534'6,542'3,464'3,471'8'4/20/2010 Open Bel 131 6,627'6,632'3,540'3,544'5'4/20/2010 Open Bel 134 6,708'6,715'3,605'3,611'7'4/18/2010 Open Bel 134 6,722'6,730'3,617'3,623'8'4/18/2010 Open Bel135 ±6,791'±6,803'±3,673'±3,683'±12'Proposed TBD Bel135 ±6,874'±6,886'±3,740'±3,750'±12'Proposed TBD OPEN HOLE / CEMENT DETAIL 9-5/8" 12-1/4" hole cemented with 263 bbls of 12 ppg Type-1 cement. 106 bbls returned to surface 4-1/2" Liner 8-1/2" hole Cemented with 78 bbls of 12.5 ppg Class G Lead and 226 bbls of 15.8 ppg Class G Tail. 100 bbls to surface. Stage #2 cemented with 65 bbls 15.8 ppg Class G. 4/15/10 CBL showed good cement up to 6430’ MD. Patchy cement from 4600’ – 6430’ MD, and good cement above 4600’ MD. MISC. INFORMATION Short Joints at 4,902’ & 6,403’ MD Well Goes >70deg inc below 1600’ MD 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. 1 Rixse, Melvin G (OGC) From:Scott Warner <Scott.Warner@hilcorp.com> Sent:Wednesday, March 6, 2024 7:08 AM To:Rixse, Melvin G (OGC) Cc:Davies, Stephen F (OGC); McLellan, Bryan J (OGC) Subject:RE: [EXTERNAL] Paxton 3 (PTD 209-168) perf sundry Mel, HopingwecandiscussthisjobwithBryanbeingoutofofficeuntil3/13.WehaveatractorcrewavailableinKenairight nowaftercompletingafewotherjobsandwearehopingtoexecutethisjobpriortosendingthembacktotheslopeif possible. Allproposedperfsareinbetweenexistingperfsinthewellandthetopoffpoolissuewasatypoasmentionedbelow. Thanks, ScoƩ Warner Kenai–OperaƟonsEngineer Oĸce:(907)564Ͳ4506 Cell:(907)830Ͳ8863 To help protect your privacy, Microsoft Office prevented automatic download of this picture from the Internet. From:ScottWarner<Scott.Warner@hilcorp.com> Sent:Tuesday,March5,20244:55PM To:McLellan,BryanJ(OGC)<bryan.mclellan@alaska.gov> Cc:Davies,StephenF(OGC)<steve.davies@alaska.gov> Subject:RE:[EXTERNAL]Paxton3(PTD209Ͳ168)perfsundry Bryan, ApologiesfortheconfusiononthisSundry. ThetopofthePoolwasatypo,asitwas10ftoffandshouldhavebeen1449’TVD.Theshallowestproposedperfsare withinthePooldefinition. Some people who received this message don't often get email from scott.warner@hilcorp.com. Learn why this is important 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. 2 Thetotalcostofthisjobwasalsochallengedinternally,andwehavesincereducedthefootageofperforationswhich changesthemaxexpectedBHP,MPSP,andshallowestallowableperfTVD. TheMaximumExpectedBHPbasedonthenewproposedperfsshouldbe1221psi@2775’basedon.44psi/ft,which thenchangestheMPSPto944psibasedon.1psi/ftgasgradienttosurface.Thisthenchangestheshallowestallowable perfTVDto1367’TVDusing15.2ppgEMWFITatthesurfacecasingshoe. NewperftableisbelowandIhaveattachedthenewproposedschematic. Ifyouhaveanyquestions,pleaseletmeknow. Thanks, ScoƩ Warner Kenai–OperaƟonsEngineer Oĸce:(907)564Ͳ4506 Cell:(907)830Ͳ8863 To help protect your privacy, Microsoft Office prevented automatic download of this picture from the Internet. From:McLellan,BryanJ(OGC)<bryan.mclellan@alaska.gov> Sent:Thursday,February29,20242:42PM To:ScottWarner<Scott.Warner@hilcorp.com> Cc:Davies,StephenF(OGC)<steve.davies@alaska.gov> Subject:[EXTERNAL]Paxton3(PTD209Ͳ168)perfsundry Scott, CAUTION:Externalsender.DONOTopenlinksorattachmentsfromUNKNOWNsenders. 3 I’mlookingovertheproposedPaxton3perfsundryandgotalittleconfusedaboutwhatyouhadlistedasshallowest allowableperfTVDbeing1937’TVD,buttherearemanyproposedandexistingperfsabovethis.Also,youhavelisted theTopofgaspoolat1459’TVD,butthetoptwoproposedperfintervalsareabovethis. Couldyouclarify? BryanMcLellan SeniorPetroleumEngineer AlaskaOil&GasConservationCommission Bryan.mclellan@alaska.gov +1(907)250Ͳ9193 The information contained in this email message is confidential and may be legally privileged and is intended only for the use of the individual or entity named above. If you are not an intended recipient or if you have received this message in error, you are hereby notified that any dissemination, distribution, or copy of this email is strictly prohibited. If you have received this email in error, please immediately notify us by return email or telephone if the sender's phone number is listed above, then promptly and permanently delete this message. While all reasonable care has been taken to avoid the transmission of viruses, it is the responsibility of the recipient to ensure that the onward transmission, opening, or use of this message and any attachments will not adversely affect its systems or data. No responsibility is accepted by the company in this regard and the recipient should carry out such virus and other checks as it considers appropriate. 1. Operations Abandon Plug Perforations Fracture Stimulate Pull Tubing Operations shutdown Performed: Suspend Perforate Other Stimulate Alter Casing Change Approved Program Plug for Redrill Perforate New Pool Repair Well Re-enter Susp Well Development Exploratory Stratigraphic Service 6. API Number: 7. Property Designation (Lease Number): 8. Well Name and Number: 9. Logs (List logs and submit electronic data per 20AAC25.071):10. Field/Pool(s): 11. Present Well Condition Summary: Total Depth measured 7,414 feet N/A feet true vertical 4,179 feet N/A feet Effective Depth measured 7,290 feet 2,271 feet true vertical 4,078 feet 1,404 feet Perforation depth Measured depth 2,759 - 6,730 feet True Vertical depth 1,482 - 3,623 feet Tubing (size, grade, measured and true vertical depth)4-1/2" 12.6# / L-80 2,299 MD 1,408 TVD 2,271 MD Packers and SSSV (type, measured and true vertical depth)Baker ZXP Pkr 1,404 TVD SSSV: N/A 12. Stimulation or cement squeeze summary: Intervals treated (measured): Treatment descriptions including volumes used and final pressure: 13. Prior to well operation: Subsequent to operation: 15. Well Class after work: Daily Report of Well Operations Exploratory Development Service Stratigraphic Copies of Logs and Surveys Run 16. Well Status after work: Oil Gas WDSPL Electronic Fracture Stimulation Data GSTOR GINJ SUSP SPLUG Sundry Number or N/A if C.O. Exempt: Contact Name: Contact Email: Authorized Title:Contact Phone: 321-427 Sr Pet Eng: 7,500psi Sr Pet Geo: Sr Res Eng: Authorized Name and Digital Signature with Date: WINJ WAG 850 Water-BblOil-Bbl 17. I hereby certify that the foregoing is true and correct to the best of my knowledge. 2 104 8,430psi Ryan Rupert ryan.rupert@hilcorp.com (907) 777-8503Dan Marlowe - Operations Manager measured true vertical Packer Representative Daily Average Production or Injection Data Casing Pressure Tubing Pressure 0234,500 0 78 14. Attachments (required per 20 AAC 25.070, 25.071, & 25.283) 0 Gas-Mcf MD 98' 2,520' N/A 24 Structural TVD STATE OF ALASKA ALASKA OIL AND GAS CONSERVATION COMMISSION REPORT OF SUNDRY WELL OPERATIONS 209-168 50-133-20588-00-00 N/A 5. Permit to Drill Number:2. Operator Name 4. Well Class Before Work: FEE / ADL00384372 Ninilchik / Beluga-Tyonek Gas Pool 3800 Centerpoint Dr, Suite 1400 Anchorage, AK 99503 3. Address: Ninilchik Unit Paxton 3 Hilcorp Alaska, LLC Other: Remove Cap String measuredPlugs Junk measured N/A Length 98' 2,520' Size Conductor Surface Intermediate 20" 9-5/8" Production Liner 5,184' Casing 98' 1,441' 4-1/2" 7,418' 4,182' 5,750psi Burst Collapse 3,090psi L G Form 10-404 Revised 10/2021 Submit Within 30 days of Operations By Samantha Carlisle at 12:44 pm, Nov 16, 2021 Digitally signed by Dan Marlowe (1267) DN: cn=Dan Marlowe (1267), ou=Users Date: 2021.11.16 11:37:53 -09'00' Dan Marlowe (1267) SFD 11/17/2021 DSR-11/16/21BJM 11/17/21 RBDMS HEW 11/16/2021 _____________________________________________________________________________________ Updated by JLL 11/15/21 SCHEMATIC Ninilchik Field Well: Paxton 03 PTD: 209-168 API#: 50-133-20588-00-00 RKB=21’ AGL MISC. INFORMATION Short Joints at 4,902’ & 6,403’ MD Well Goes >70deg inc below 1600’ MD PBTD = 7,290’MD / 4,078’ TVD TD = 7,414’ MD / 4,179’ TVD 4 2/3 20” 9-5/8” 1 5 4-1/2” B-4 BEL 105 BEL 106 BEL 15 BEL 20 BEL 10 CASING DETAIL Size Type Wt/ Grade/ Conn ID Top Btm 20" Conductor 129# / X-56 / N/A N/A Surf 98' 9-5/8" Surface 40# / L-80 / BTC 8.835 Surf 2,520' 4-1/2" Production 12.6# / L-80 / IBT-M 3.958 2,234' 7,418' TUBING DETAIL 4-1/2" Tie-Back 12.6# / L-80 / Hyd 563 3.958 Surf 2,299' No Depth (MD) Depth (TVD) ID Item 1 1,508’ 1,237’ Chemical Injection Mandrel 2 2,271’ 1,404’ >3.80 Baker 4-1/2” ZXP Liner Top Packer with polish bore 3 2,274’ 1,405’ >3.80 Liner Hanger 4 3,261’ 1,567’ 3.80” (milled) Stage Cement Collar 5 3,264’ 1,567’ 3.80” (Milled) 4-1/2” Overshot w/ 4’ Swallow Zone Top (MD) Btm (MD) Top (TVD) Btm (TVD)Length Perf Date Status BEL 10L 2,759’2,779’1,482’1,485’20’09/15/21 Open BEL 10L 2,780’2,831’1,486’1,494’51’09/17/21 Open BEL 10L 2,832’2,863’1,495’1,500’31’09/17/21 Open BEL 15 3,115’3,130’1,542’1,545’15’09/15/21 Open BEL 20U 3,545’3,571’1,615’1,619’26’09/14/21 Open BEL 20U 3,577’3,603’1,620’1,625’26’09/14/21 Open BEL 105 6,370’6,379’3,331’3,338’9’10/24/2020 Open BEL 106 6,388’ 6,396’ 3,345’ 3,352’ 8’ 10/23/2020 Open B-4 6,432' 6,452' 3,381' 3,397' 20' 4/18/2010 Open 6,534'6,542'3,464'3,471' 8'4/20/2010 Open 6,627'6,632'3,540'3,544' 5'4/20/2010 Open 6,708'6,715'3,605'3,611' 7' 4/18/2010 Open 6,722'6,730'3,617'3,623' 8' 4/18/2010 Open OPEN HOLE / CEMENT DETAIL 9-5/8" 12-1/4" hole cemented with 263 bbls of 12 ppg Type-1 cement. 106 bbls returned to surface 4-1/2" Liner 8-1/2" hole Cemented with 78 bbls of 12.5 ppg Class G Lead and 226 bbls of 15.8 ppg Class G Tail. 100 bbls to surface. Stage #2 cemented with 65 bbls 15.8 ppg Class G. 4/15/10 CBL showed good cement up to 6430’ MD. Patchy cement from 4600’ – 6430’ MD, and good cement above 4600’ MD. ()()()() BEL 10L 2,759’2,779’1,482’1,485’20’09/15/21 Open BEL 10L 2,780’2,831’1,486’1,494’51’09/17/21 Open BEL 10L 2,832’2,863’1,495’1,500’31’09/17/21 Open BEL 15 3,115’3,130’1,542’1,545’15’09/15/21 Open BEL 20U 3,545’3,571’1,615’1,619’26’09/14/21 Open BEL 20U 3,577’3,603’1,620’1,625’26’09/14/21 Open ()()()() Rig Start Date End Date Coil 9/9/21 10/17/21 Hilcorp Alaska, LLC Well Operations Summary API Number Well Permit NumberWell Name Paxton 3 50-133-20588-00-00 209-168 09/09/2021 - Thursday Mobilize Petrospec crew from Canada to Alaska. Notify personnel involved of upcoming work. Daily Operations: 09/10/2021- Friday Rig up cap string truck. Pull 3/8" cap string from 6325'. Rig is ready for Petrospec E-coil perforating.Inspect coil equipment, conduct function check and find Accumulator bladders are deteriorated. Order new bladders, loaded onto FedEx for delivery to Alaska on Saturday. Continue with maintenance and prep. Coordinate with Yellow Jacket for heading up and electronic testing. 09/14/2021 - Tuesday PTW, JSA with crews. Start BOPE test. 24 Hr BOPE test witness notification sent 9/10/2021 @ 0906. Witness waived by Jim Regg 9/10/2021 @ 0910 hrs. Continue to keep AOGCC Jim Regg in the Loop with delays. Function test Koomey. Test BOPE 250/2500 psi. Rig up Yellow Jacket E-line to CTU. Prep GPT and guns. BOPE test finished. Pick injector and stack up 45' of lubricator. Make up GPT. Stab on well PT stack 250/2500 psi. WHP 78 psi. Flowing 750 MCFD. RIH for GPT run. 6250' RKB started seeing comingled water and gas. Solid tag at 6887' RKB. Break down GPT. Make up gun run 1. RIH. Log OOH from 3800' to 3282' (26'). Send log to town. Drop back down. Town confirms on depth. CCL to top shot 12'. PU to 3565' and park. Shooting the BEL_20L from 3577'-3603' (26) with 2 7/8" guns loaded 6 SPF 0* phasing. Pulled trigger at 17:11 hrs. No change in rate until 17:24 hrs. Rate increased from 850 to 1.2 MMCFD. POOH to surface. Tagged up. Pop off well. All shots confirmed fired. Bull nose of guns was full of wet Beluga sands. No significant notice of fluid returns to surface after 1st shot. Make up Gun run #2. Change out petrospec coil counter/encoder cable from unit to injector head. Stab on well. PT 250/2500 psi. RIH and start logging OOH from 3776'-3200' Send log to town. Confirmed on depth. l94 psi Tubing PU to 3533' CCL to top shot 12'. Shoot gun run #2 , BEL 20_U from 3545'-3571' (26') with 2 7/8" guns loaded with RZR charges 6 spf 0* phasing. POOH to surface. 94 psi and 2166 MMCFD. POOH. Tagged up at surface. Pop off well. Confirmed all shots fired. Bull nose was full of wet beluga sand. Rig down E-line tools. 94 psi 2203 MMCFD last recorded well rate and pressure. Well site walk around completed. SDFN. Shoot gun run #2 , BEL 20_U from 3545'-3571' (26') w Shooting the BEL_20L from 3577'-3603' (26) with 2 7/8" guns loaded 6 SPF 0* phasing. Pulled trigger a Rig Start Date End Date Coil 9/9/21 10/17/21 Hilcorp Alaska, LLC Well Operations Summary API Number Well Permit NumberWell Name Paxton 3 50-133-20588-00-00 209-168 Daily Operations: 10/17/2021 - Sunday Evaluation complete. No increase in water production. No plug/patch needed for now. PTW, JSA with crew. YJOS Eline unit. Petrospec CTU with 1.75" E-coil Cruz crane. Pick Petrospec Injector head and RU 45' of lubricator. Make up YJOS 1 11/16" GPT and Gun run #3. 2 7/8"x15' Gun for Bel_15 sands loaded with RZR charges 6 spf, 0 degree phasing. Stab on well. Coil having issues with counter encoder on injector head. Pop off well and clean connectors. Possibly fault due to water in connector box. Stab on well. Pt stack 250/2500 psi. Open well. RIH Initial flow ratre of 1.2 MMCFD @ 87 psi. Ran GPT to 6850' RKB did not tag PBTD due to running the GPT on coil. Fluid level @ 5050' RKB. Log OOH 30 ft/min across interval. CCL to top shot 18'. Send log to town. Confirmed on depth. Shoot Gun #3 interval in the BEL_15 of 15'. Shot guns 3115'-3130' RKB. POOH to surface. No significant increase in rate or pressure. POOH. Tagged up. Close swab. Pop off well confirmed all shots fired. Bull nose didnt have sand this time but was full of water. Rig up Gun #4 . Stabbed on well. PT stack 250/2500 psi. RIH. E-line lost communication with tools. POOH. Inspect and confirm the wire line collector in the coil pulled out of the rope socket. Re head E-coil. Cable head on coil collector fixed. Re install YJOS E-line tools. Stab on well. RIH w/ 1 11/16" GPT, 1 11/16" SS and 20' of 2 7/8" gun loaded with Razor charges, 6 spf, 0* phasing. 11.5' CCL to top shot. Log interval. Send log to town. On depth. Perforate BEL_10u sands from 2,759'-2,779' RKB (20'). POOH to surface. Gas rate climbing. Close swab valve. Pop off well. Confirmed all shots fired. Bull plug was wet. Rig down Petrospec CTU. Location secure. Well rate increasing to 2.125 MMCFD @ 79 psi. + 1.3 MMCFD increase during this coil campaign. SDFN. 09/16/2021 - Thursday Arrived on location PTW, JSA. Cruz Crane op informed wind was pretty bad. Checked other locations and sho0wing only 17 mph. Picked up crane boom. Boom tip weather station showing 31-35 MPH winds. Crane operator called the shut down due to high winds. 09/15/21/2021 - Wednesday 09/17/2021- Friday PTW, JSA with crews. Pick up coil and add lubricator. Make up Guns. FOUND FLUID AT 4780' BEFORE PERFOATING GUN 5. RIH 1 11/16" GPT, 1 11/16" SS AND 20' OF 2 7/8" RAZOR, 12.5 ' FROM CCL TO TOP SHOT, PERF @ 2780-2800, CCL DEPTH = 2767.5', SHOT - POOH- BULL PLUG WAS DRY. RIH 1 11/16" GG, 1 11/16" SS AND 31' OF 2 7/8" RAZOR, 11', FROM CCL TO TOP SHOT, PERF @ 2800'-2831', CCL DEPTH = 2789' SHOT - POOH. BULL PLUG WAS DRY. RIH 1 11/16" GG, 1 11/16" SS AND 31' OF 2 7/8" RAZOR, 11', FROM CCL TO TOP SHOT, PERF @ 2832'-2863', CCL DEPTH = 2821' , SHOT - POOH. BULL PLUG WAS DRY. PERF @ 2832'-2863', Shot guns 3115'-3130' RKB. PERF @ 2800'-2831', PERF @ 2780-2800, Perforate BEL_10u sands from 2,759'-2,779' RKB (20'). P Kaitlyn Barcelona Hilcorp North Slope, LLC GeoTechnician 3800 Centerpoint Drive, Suite 1400 Anchorage, AK 99503 Tele: 907 777-8337 E-mail: kaitlyn.barcelona@hilcorp.com Please acknowledge receipt by signing and returning one copy of this transmittal Received By: Date: DATE: 11/1/2021 To: Alaska Oil & Gas Conservation Commission Natural Resource Technician 333 W 7th Ave Suite 100 Anchorage, AK 99501 DATA TRANSMITTAL PAXTON 3 (PTD 209-168) Perf Record 09/14/2021 Please include current contact information if different from above. 11/02/2021 1. Type of Request: Abandon Plug Perforations Fracture Stimulate Repair Well Operations shutdown Suspend Perforate Other Stimulate Pull Tubing Change Approved Program Plug for Redrill Perforate New Pool Re-enter Susp Well Alter Casing Other: __N2/Patch/Cap String__ 2.Operator Name:4.Current Well Class:5.Permit to Drill Number: Exploratory Development 3. Address:Stratigraphic Service 6. API Number: 7. If perforating:8.Well Name and Number: What Regulation or Conservation Order governs well spacing in this pool? Will planned perforations require a spacing exception?Yes No 9.Property Designation (Lease Number):10.Field/Pool(s): 11. Total Depth MD (ft): Total Depth TVD (ft): Effective Depth MD: Effective Depth TVD: MPSP (psi):Plugs (MD):Junk (MD): 7,414'N/A Casing Collapse Structural Conductor Surface 3090 psi Intermediate Production Liner 7500 psi Packers and SSSV Type:Packers and SSSV MD (ft) and TVD (ft): 12. Attachments: Proposal Summary Wellbore schematic 13.Well Class after proposed work: Detailed Operations Program BOP Sketch Exploratory Stratigraphic Development Service 14.Estimated Date for 15. Well Status after proposed work: Commencing Operations:OIL WINJ WDSPL Suspended 16.Verbal Approval:Date:GAS WAG GSTOR SPLUG Commission Representative: GINJ Op Shutdown Abandoned Taylor Wellman 777-8449 Contact Name: Ryan Rupert Operations Manager Contact Email: Contact Phone: 777-8503 Date: Conditions of approval: Notify Commission so that a representative may witness Sundry Number: Plug Integrity BOP Test Mechanical Integrity Test Location Clearance Other: Post Initial Injection MIT Req'd? Yes No Spacing Exception Required? Yes No Subsequent Form Required: APPROVED BY Approved by:COMMISSIONER THE COMMISSION Date: Comm.Comm.Sr Pet Eng Sr Pet Geo Sr Res Eng September 9, 2021 20" 9-5/8" 77' MD Paxton-03 Fee Lease Tract 163 Ninilchik Unit / Beluga-Tyonek Gas Pool Length Size CO701C PRESENT WELL CONDITION SUMMARY N/A TVD Burst STATE OF ALASKA ALASKA OIL AND GAS CONSERVATION COMMISSION APPLICATION FOR SUNDRY APPROVALS 20 AAC 25.280 209-168 50-133-20588-00-00 Hilcorp Alaska, LLC 3800 Centerpoint Dr, Suite 1400 Anchorage Alaska 99503 Tubing MD (ft): See Attached Schematic 5,184' 4,182'4-1/2" 8430 psi 4-1/2" L-80 / 12.6# Perforation Depth MD (ft): See Attached Schematic COMMISSION USE ONLY Authorized Name: Authorized Title: 17. I hereby certify that the foregoing is true and the procedure approved herein will not be deviated from without prior written approval. Authorized Signature: ryan.rupert @hilcorp.com Perforation Depth TVD (ft): Tubing Size: 4,179' 7,290' 4,078' ~ 1313 psi 7,418' Tubing Grade: 2,299' ZXP Liner Top Pkr; N/A 2,271' MD / 1,404' TVD; N/A 2,499'5750 psi 98' 1,441' 98' 2,520' Form 10-403 Revised 3/2020 Approved application is valid for 12 months from the date of approval. By Samantha Carlisle at 8:26 am, Aug 26, 2021 321-427 Digitally signed by Taylor Wellman (2143) DN: cn=Taylor Wellman (2143), ou=Users Date: 2021.08.25 22:08:55 -08'00' Taylor Wellman (2143) BJM 9/8/21 10-404 SFD 8/26/2021 DSR-8/26/21 dts 9/8/2021 Jeremy Price Digitally signed by Jeremy Price Date: 2021.09.09 08:56:23 -08'00' RBDMS HEW 9/10/2021 Well Prognosis Well: Paxton-03 Date: 8/25/2021 Well Name:Paxton-03 API Number:50-133-20588-00-00 Current Status:Gas Producer Leg:N/A Regulatory Contact:Donna Ambruz 777-8305 Permit to Drill Number:209-168 First Call Engineer:Ryan Rupert (907) 777-8503 (O)(907) 301-1736 (C) Second Call Engineer:Jake Flora (907) 777-8442 (O)(720) 988-5375 (C) Maximum Expected BHP:~ 1688 psi @ 3,750’ TVD (Based on a 0.45 psi/ft gradient to deepest proposed perf) Max. Potential Surface Pressure:~ 1313 psi Using Max BHP minus 0.1 psi/ft. gas gradient to surface). Well Summary Paxton-03 is a steady producer which is now producing below 750mcfd. Given the uphole potential in this well, the below perfs are proposed to increase rate from the well. The perfs will require e-coil operations since the well goes >70 degrees below 1600’ MD. The purpose of this work is to add perfs to increase production from Paxton-03 Notes Regarding Wellbore Condition x Inclination o Well goes > 70deg inclination at ~1600’ MD o Sail angle of ~80 from 1900’ – 3700’ MD, then rolls over to 35 degrees by PBTD x 4/21/22: 3/8” cap string installed to 6325’ MD. Had to work it, bu made it down. x October-2020 EL Tractor perf adds o Repeatedly had to tractor from 1700-4500’ MD o Made it down to PBTD and tagged at 6918’ MD with a GPT assembly o Multiple 2-7/8” x 10’ perf guns on tractor made it down to 6375’+ MD x 2/18/17 EL Tractor logging assembly made it down to 6800’ MD (no tag) x No historic issues around LTP at 2271’ MD nor stage cement tool (since CT milled it out in 2010) at 3261’ MD, but use caution at these depths Risks x Nitrogen o Discuss nitrogen asphyxiation concerns and identify any areas where nitrogen could collect and people could enter. o Consider tank placement based on wind direction and current weather forecast (venting Nitrogen during this job) o Ensure all crews are aware of stop work authority Proposed perforations will span the 2135' vertical interval from 1614' to 3749' TVD (3540' to 6886' MD). SFD 8/26/2021 Well Prognosis Well: Paxton-03 Date: 8/25/2021 Cap String Procedure 1. RU Cap String Truck. 2. Pull 3/8” capillary line from 6325’ MD 3. RD Cap String Truck, and turn well over to production. e-Coil Procedure 1. MIRU Petrospec e-coil 2. Perform BOP test to 250psi low / 2500 high (notify AOGCC 24hrs in advance) 3. RU E-Line Data Acquisition Unit 4. MU GPT 5. RIH and log flowing GPT looking for FL. 6. Obtain a light tag of PBTD regardless of FL depth 7. Obtain an upward 30fpm flowing pass from 6750’ – 6350’ (across all perfs). POOH 8. RU perf guns. Likely 2-7/8” – 3-3/8” guns with 4-6 spf 9. RIH and perforate the below intervals per Geo/RE: Sand MD Top MD Bottom TVD Top TVD Bottom Total Footage (MD) BEL_20 ±3,540’±3,623’±1,614’±1,628’83‘ BEL_47 ±4,459’±4,475’±1,937’±1,944’16‘ BEL_48 ±4,490’±4,506’±1,951’±1,959’16‘ BEL_59u ±5,308’±5,320’±2,469’±2,479’12‘ BEL_59L ±5,333’±5,340’±2,489’±2,495’7‘ BEL_72u ±5,468’±5,477’±2,598’±2,606’9‘ BEL_72L ±5,488’±5,497’±2,614’±2,622’9‘ BEL_82 ±5,676’±5,685’±2,767’±2,775’9‘ BEL_93 ±6,026’±6,036’±3,051’±3,059’10‘ BEL_99u ±6,270’±6,275’±3,250’±3,253’5‘ BEL_99L ±6,282’±6,289’±3,259’±3,265’7‘ BEL_135L ±6,874’±6,886’±3,740’±3,750’12‘ Consult with OE for what WHP’s to use. May be shot while flowing Make correlation pass and send log in to Operations Engineer, Reservoir Engineer and the Geologist. a.Use Gamma/CCL to correlate. b. Record initial and 5/10/15 minute tubing pressures after firing c. Consult with RE/Geo between each perf interval: i. Matt Petrowsky (Geo): 814-421-6753 ii. Anthony McConkey (RE): 529-6199 10. Once sufficient production has been added per RE/Geo, RD E-Line Unit and Coiled Tubing Unit and turn well over to production. BEL_93 ±6,026’±6,036’±3,051’±3,059’10‘ BEL_99u ±6,270’±6,275’±3,250’±3,253’5‘ BEL_99L ±6,282’±6,289’±3,259’±3,265’7‘ See email attached with additional perfs which are approved as part of this Sundry. The Perfs highlighted below (BEL_48, 93, 99u, 99L) will require further review by AOGCC before perfing. Approval will be given based upon the potential to frac out of shallower zones. bjm BEL_48 ±4,490’±4,506’±1,951’±1,959’16‘ Well Prognosis Well: Paxton-03 Date: 8/25/2021 Cap String Procedure: 1. RU Cap String Truck. 2. Stab 3/8” capillary line into wellhead pack-off assembly. Make up BHA components. Install pack-off and pressure test against swab valve 250 psi low/3,000 psi high. 3. RIH with 3/8” capillary string to ±25’ MD above top open perf. a. Deviation will very likely stop us shallow of target depth b. Set cap string as deep as practical 4. Install slips and connect tubing to chemical injection pump. 5. Set spool of remaining line near well 6. RD cap string Unit, and turn well over to production. Contingency Ecoil Plug or Patch 1. MIRU Petrospec e-coil 2. Perform BOP test to 250psi low / 3500 high (notify AOGCC 24hrs in advance) 3. RU E-Line Data Acquisition Unit 4. RIH W/ GPT tool and find fluid level 5. RU Nitrogen Truck a. Push water back into formation b. Use GPT tool to confirm water level is below interval to perf c. Consult OE for pressure to leave on well for perforating 6. Once fluid level is below interval to isolate, MU 4-1/2” patch or plug 7. RIH and set plug or patch per OE. 8. RD E-Line Unit and Coiled Tubing Unit and turn well over to production. Attachments: 1. Current schematic 2. Proposed Schematic 3. Standard Well procedure – N2 Operations _____________________________________________________________________________________ Updated by CRR 04-28-21 SCHEMATIC Cook Inlet Basin, Alaska Middle Ground Shoal Last Completed: 02-28-1992 Oil Well ->Water injector -> Gas producer for Platform Ninilchik Field Well #:Paxton 03 PTD: 209-168 API#: 50-133-20588-00-00 RKB=21’ AGL MISC. INFORMATION Short Joints at 4,902’ & 6,403’ MD Well Goes >70deg inc below 1600’ MD RKB=21’ AGL CASING DETAIL Size Type Wt/ Grade/ Conn ID Top Btm 20"Conductor 129# / X-56 / N/A N/A Surf 98' 9-5/8"Surface 40# / L-80 / BTC 8.835 Surf 2,520' 4-1/2"Production 12.6# / L-80 / IBT-M 3.958 2,234'7,418' TUBING DETAIL 4-1/2"Tie-Back 12.6# / L-80 / Hyd 563 3.958 Surf 2,299' JEWELRY DETAIL No Depth ID Length Item 1 1,508’Chemical Injection Mandrel 2 2,271’>3.80 3’Baker 4-1/2” ZXP Liner Top Packer with polish bore 3 2,274’>3.80 10’Liner Hanger 4 3,261’3.80” (milled)6’Stage Cement Collar 5 3,264’3.80” (Milled)57’4-1/2” Overshot w/ 4’ Swallow Zone Top (MD) Btm (MD) Top (TVD) Btm (TVD)Length Perf Date Status BEL 105 6,370’6,379’3,331’3,338’9’10/24/2020 Open BEL 106 6,388’6,396’3,345’3,352’8’10/23/2020 Open B-4 6,432'6,452'3,381'3,397'20'4/18/2010 Open 6,534'6,542'3,464'3,471'8'4/20/2010 Open 6,627'6,632'3,540'3,544'5'4/20/2010 Open 6,708'6,715'3,605'3,611'7'4/18/2010 Open 6,722'6,730'3,617'3,623'8'4/18/2010 Open OPEN HOLE / CEMENT DETAIL 9-5/8"12-1/4" hole cemented with 263 bbls of 12 ppg Type-1 cement. 106 bbls returned to surface 4-1/2" Liner 8-1/2" hole Cemented with 78 bbls of 12.5 ppg Class G Lead and 226 bbls of 15.8 ppg Class G Tail. 100 bbls to surface.Stage #2 cemented with 65 bbls 15.8 ppg Class G. 4/15/10 CBL showed good cement up to 6430’ MD. Patchy cement from 4600’ – 6430’ MD, and good cement above 4600’ MD. Capillary String (3/8”) Installed 04/21/22 Top Bottom MD 0’ 6,325’ TVD 0’ 3,294’ _____________________________________________________________________________________ Updated by CRR 08-25-21 PROPOSED SCHEMATIC Cook Inlet Basin, Alaska Middle Ground Shoal Last Completed: 02-28-1992 Oil Well ->Water injector -> Gas producer for Platform Ninilchik Field Well:Paxton 03 PTD: 209-168 API#: 50-133-20588-00-00 RKB=21’ AGL MISC. INFORMATION Short Joints at 4,902’ & 6,403’ MD Well Goes >70deg inc below 1600’ MD RKB=21’ AGL CASING DETAIL Size Type Wt/ Grade/ Conn ID Top Btm 20"Conductor 129# / X-56 / N/A N/A Surf 98' 9-5/8"Surface 40# / L-80 / BTC 8.835 Surf 2,520' 4-1/2"Production 12.6# / L-80 / IBT-M 3.958 2,234'7,418' TUBING DETAIL 4-1/2"Tie-Back 12.6# / L-80 / Hyd 563 3.958 Surf 2,299' No Depth ID Item 1 1,508’Chemical Injection Mandrel 2 2,271’>3.80 Baker 4-1/2” ZXP Liner Top Packer with polish bore 3 2,274’>3.80 Liner Hanger 4 3,261’3.80” (milled)Stage Cement Collar 5 3,264’3.80” (Milled)4-1/2” Overshot w/ 4’ Swallow Zone Top (MD) Btm (MD) Top (TVD) Btm (TVD)Length Perf Date Status Perfs per Sundry BEL 105 6,370’6,379’3,331’3,338’9’10/24/2020 Open BEL 106 6,388’6,396’3,345’3,352’8’10/23/2020 Open B-4 6,432'6,452'3,381'3,397'20'4/18/2010 Open 6,534'6,542'3,464'3,471'8'4/20/2010 Open 6,627'6,632'3,540'3,544'5'4/20/2010 Open 6,708'6,715'3,605'3,611'7'4/18/2010 Open 6,722'6,730'3,617'3,623'8'4/18/2010 Open OPEN HOLE / CEMENT DETAIL 9-5/8"12-1/4" hole cemented with 263 bbls of 12 ppg Type-1 cement. 106 bbls returned to surface 4-1/2" Liner 8-1/2" hole Cemented with 78 bbls of 12.5 ppg Class G Lead and 226 bbls of 15.8 ppg Class G Tail. 100 bbls to surface.Stage #2 cemented with 65 bbls 15.8 ppg Class G. 4/15/10 CBL showed good cement up to 6430’ MD. Patchy cement from 4600’ – 6430’ MD, and good cement above 4600’ MD. Additional perfs included in attached email. bjm 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. 1 Carlisle, Samantha J (CED) From:McLellan, Bryan J (CED) Sent:Wednesday, September 8, 2021 12:17 PM To:Ryan Rupert Cc:Donna Ambruz; Taylor Wellman; Anthony McConkey; Matthew Petrowsky Subject:RE: [EXTERNAL] RE: Paxton 3 AOGCC 10-403 PTD 209-168 Submitted 08-26-21 - Sundry Application Ryan, IagreewithyourstrategybelowandI’llattachittotheSundryapplication. Regards BryanMcLellan SeniorPetroleumEngineer AlaskaOil&GasConservationCommission 333W7thAve Anchorage,AK99501 Bryan.mclellan@alaska.gov +1(907)250Ͳ9193 From:RyanRupert<Ryan.Rupert@hilcorp.com> Sent:Tuesday,September7,20213:04PM To:McLellan,BryanJ(CED)<bryan.mclellan@alaska.gov> Cc:DonnaAmbruz<dambruz@hilcorp.com>;TaylorWellman<twellman@hilcorp.com>;RyanRupert <Ryan.Rupert@hilcorp.com>;AnthonyMcConkey<amcconkey@hilcorp.com>;MatthewPetrowsky <mpetrowsky@hilcorp.com> Subject:RE:[EXTERNAL]RE:Paxton3AOGCC10Ͳ403PTD209Ͳ168Submitted08Ͳ26Ͳ21ͲSundryApplication BryanͲ WeunfortunatelyonlyhaveaFITonthesurfacecasingshoe(15.2ppg).Giventhat,Hilcorpproposesthattheaselect fewsandsbelowbeconditionaluponreviewwithAOGCC.Hilcorpwillnotopenthesehigherpressuresandswithout firstgettingwrittenapprovalfromtheagency.If/whenreadytoperfthese,wecanhaveaconversationaboutwhat’s currentlyopeninthewell,andwhatwouldbeexposedtohigherSIpressure,etc…Noneoftheproposedperfsbelow forapprovalcouldgeneratepressures>15.2ppgatthe9Ͳ5/8”shoe.Pleaseletmeknowifthisissufficient,and/orif you’dliketodiscussfurther.Thanks, Proposedapprovalperexistingsundryapplication SandPerfTopPerfBottomPerfTopPerfBottomTotalFootage (MD)(MD)(TVD)(TVD)(MD) BEL_10±2,750’±2,866’±1,480’±1,500’116’356 BEL_12±2,902’±2,938’±1,506’±1,512’36’358 BEL_13±2,985’±3,037’±1,520’±1,529’52’295 BEL_15±3,114’±3,137’±1,542’±1,546’23’698(calcul BEL_16U±3,171’±3,221’±1,552’±1,560’50’289( 2 BEL_16L±3,264’±3,338’±1,567’±1,580’74’289( BEL_20±3,540’±3,623’±1,614’±1,628’83‘638 BEL_47±4,459’±4,475’±1,937’±1,944’16‘638 BEL_59u±5,308’±5,320’±2,469’±2,479’12‘647 BEL_59L±5,333’±5,340’±2,489’±2,495’7‘1026 BEL_72u±5,468’±5,477’±2,598’±2,606’9‘683 BEL_72L±5,488’±5,497’±2,614’±2,622’9‘1069 BEL_82±5,676’±5,685’±2,767’±2,775’9‘1251(calcu BEL_135L±6,874’±6,886’±3,740’±3,750’12‘477 Can’tshootwithoutadditionalwrittenapprovalfromAOGCCafterwellboreconditionreview SandPerfTopPerfBottomPerfTopPerfBottomTotalFootage (MD)(MD)(TVD)(TVD)(MD) BEL_48±4,490’±4,506’±1,951’±1,959’16‘1308 BEL_93±6,026’±6,036’±3,051’±3,059’10‘134 BEL_99u±6,270’±6,275’±3,250’±3,253’5‘1515 BEL_99L±6,282’±6,289’±3,259’±3,265’7‘1515 Ryan Rupert Kenai Ops Engineer (13146) 907-301-1736 (Cell) 907-777-8503 (Office) From:McLellan,BryanJ(CED)<bryan.mclellan@alaska.gov> Sent:Wednesday,September1,20212:35PM To:RyanRupert<Ryan.Rupert@hilcorp.com> Cc:DonnaAmbruz<dambruz@hilcorp.com>;TaylorWellman<twellman@hilcorp.com> Subject:RE:[EXTERNAL]RE:Paxton3AOGCC10Ͳ403PTD209Ͳ168Submitted08Ͳ26Ͳ21ͲSundryApplication HiRyan, WhatwastheLOTpressureatthe9Ͳ5/8”casingshoe? I’dliketoseesomekindofanalysistodeterminehowshallowyoucanperfwithoutriskingfrac’ingtheshallowsands whenyoushutͲin. BryanMcLellan SeniorPetroleumEngineer 3 AlaskaOil&GasConservationCommission 333W7thAve Anchorage,AK99501 Bryan.mclellan@alaska.gov +1(907)250Ͳ9193 From:RyanRupert<Ryan.Rupert@hilcorp.com> Sent:Tuesday,August31,20213:26PM To:McLellan,BryanJ(CED)<bryan.mclellan@alaska.gov> Cc:DonnaAmbruz<dambruz@hilcorp.com>;TaylorWellman<twellman@hilcorp.com>;RyanRupert <Ryan.Rupert@hilcorp.com> Subject:FW:[EXTERNAL]RE:Paxton3AOGCC10Ͳ403PTD209Ͳ168Submitted08Ͳ26Ͳ21ͲSundryApplication BryanͲ Apologiesfornotincludingtheminitially,butHilcorpwouldliketoaddthebelowhighlightedsandstothePaxͲ03perf sundrycurrentlyunderreview.Pleaseletmeknowifyouhaveanyquestions,orwouldpreferthisinadifferent format.Thanks, SandPerfTopPerfBottomPerfTopPerfBottomTotalFootage (MD)(MD)(TVD)(TVD)(MD) BEL_10±2,750’±2,866’±1,480’±1,500’116’ BEL_12±2,902’±2,938’±1,506’±1,512’36’ BEL_13±2,985’±3,037’±1,520’±1,529’52’ BEL_15±3,114’±3,137’±1,542’±1,546’23’ BEL_16U±3,171’±3,221’±1,552’±1,560’50’ BEL_16L±3,264’±3,338’±1,567’±1,580’74’ BEL_20±3,540’±3,623’±1,614’±1,628’83‘ BEL_47±4,459’±4,475’±1,937’±1,944’16‘ BEL_48±4,490’±4,506’±1,951’±1,959’16‘ BEL_59u±5,308’±5,320’±2,469’±2,479’12‘ BEL_59L±5,333’±5,340’±2,489’±2,495’7‘ BEL_72u±5,468’±5,477’±2,598’±2,606’9‘ BEL_72L±5,488’±5,497’±2,614’±2,622’9‘ BEL_82±5,676’±5,685’±2,767’±2,775’9‘ BEL_93±6,026’±6,036’±3,051’±3,059’10‘ BEL_99u±6,270’±6,275’±3,250’±3,253’5‘ BEL_99L±6,282’±6,289’±3,259’±3,265’7‘ BEL_135L±6,874’±6,886’±3,740’±3,750’12‘ Ryan Rupert 4 Kenai Ops Engineer (13146) 907-301-1736 (Cell) 907-777-8503 (Office) From:Carlisle,SamanthaJ(CED)<samantha.carlisle@alaska.gov> Sent:Thursday,August26,20218:27AM To:DonnaAmbruz<dambruz@hilcorp.com> Cc:RyanRupert<Ryan.Rupert@hilcorp.com>;TaylorWellman<twellman@hilcorp.com> Subject:[EXTERNAL]RE:Paxton3AOGCC10Ͳ403PTD209Ͳ168Submitted08Ͳ26Ͳ21ͲSundryApplication Received for processing From:DonnaAmbruz<dambruz@hilcorp.com> Sent:Thursday,August26,20217:47AM To:AOGCCPermitting(CEDsponsored)<aogcc.permitting@alaska.gov> Cc:RyanRupert<Ryan.Rupert@hilcorp.com>;TaylorWellman<twellman@hilcorp.com> Subject:Paxton3AOGCC10Ͳ403PTD209Ͳ168Submitted08Ͳ26Ͳ21ͲSundryApplication ApplicationforSundryApproval Thankyou. Donna Ambruz Operations/RegulatoryTech KenaiAssetTeam HilcorpAlaska,LLC 3800CenterpointDrive,Suite1400 Anchorage,AK99503 907.777.8305ͲDirect dambruz@hilcorp.com The information contained in this email message is confidential and may be legally privileged and is intended only for the use of the individual or entity named above. If you are not an intended recipient or if you have received this message in error, you are hereby notified that any dissemination, distribution, or copy of this email is strictly prohibited. If you have received this email in error, please immediately notify us by return email or telephone if the sender's phone number is listed above, then promptly and permanently delete this message. While all reasonable care has been taken to avoid the transmission of viruses, it is the responsibility of the recipient to ensure that the onward transmission, opening, or use of this message and any attachments will not adversely affect its systems or data. No responsibility is accepted by the company in this regard and the recipient should carry out such virus and other checks as it considers appropriate. The information contained in this email message is confidential and may be legally privileged and is intended only for the use of the individual or entity named above. If you are not an intended recipient or if you have received this message in error, you are hereby notified that any dissemination, distribution, or copy of this email is strictly prohibited. If you have received this email in error, please immediately notify us by return email or telephone if the sender's phone number is listed above, then promptly and permanently delete this message. While all reasonable care has been taken to avoid the transmission of viruses, it is the responsibility of the recipient to ensure that the onward transmission, opening, or use of this message and any attachments will not adversely affect its systems or data. No responsibility is accepted by the company in this regard and the recipient should carry out such virus and other checks as it considers appropriate. 1 Carlisle, Samantha J (CED) From:Davies, Stephen F (CED) Sent:Wednesday, September 1, 2021 2:23 PM To:Roby, David S (CED); McLellan, Bryan J (CED) Subject:RE: [EXTERNAL] RE: Paxton 3 AOGCC 10-403 PTD 209-168 Submitted 08-26-21 - Sundry Application Bryan, Daveisright.InPaxton3,thetopoftheBeluga/TyonekGasPoolliesat2566’MD(Ͳ1276’TVDSS),sotheproposedperfs fallwithinthepool. Cheers, Steve CONFIDENTIALITYNOTICE:ThiseͲmailmessage,includinganyattachments,containsinformationfromtheAlaskaOilandGasConservationCommission (AOGCC),StateofAlaskaandisforthesoleuseoftheintendedrecipient(s).Itmaycontainconfidentialand/orprivilegedinformation.Theunauthorizedreview,use ordisclosureofsuchinformationmayviolatestateorfederallaw.IfyouareanunintendedrecipientofthiseͲmail,pleasedeleteit,withoutfirstsavingorforwarding it,and,sothattheAOGCCisawareofthemistakeinsendingittoyou,contactSteveDaviesat907Ͳ793Ͳ1224orsteve.davies@alaska.gov. From:Roby,DavidS(CED) Sent:Wednesday,September1,20212:15PM To:McLellan,BryanJ(CED)<bryan.mclellan@alaska.gov>;Davies,StephenF(CED)<steve.davies@alaska.gov> Subject:RE:[EXTERNAL]RE:Paxton3AOGCC10Ͳ403PTD209Ͳ168Submitted08Ͳ26Ͳ21ͲSundryApplication PerCO701CthetopofthepoolincludestheBeluga8sands,sotheseperfswillfallinthepoollimits. DaveRoby (907)793Ͳ1232 From:McLellan,BryanJ(CED)<bryan.mclellan@alaska.gov> Sent:Wednesday,September1,20211:58PM To:Roby,DavidS(CED)<dave.roby@alaska.gov>;Davies,StephenF(CED)<steve.davies@alaska.gov> Subject:FW:[EXTERNAL]RE:Paxton3AOGCC10Ͳ403PTD209Ͳ168Submitted08Ͳ26Ͳ21ͲSundryApplication Guys, WilltheseadditionalperfscreateanyissuesifweincludethemwithSundry321Ͳ427?Aretheyallinthesamepoolas theexistingperfs? Thanks BryanMcLellan SeniorPetroleumEngineer AlaskaOil&GasConservationCommission 333W7thAve Anchorage,AK99501 Bryan.mclellan@alaska.gov +1(907)250Ͳ9193 2 From:RyanRupert<Ryan.Rupert@hilcorp.com> Sent:Tuesday,August31,20213:26PM To:McLellan,BryanJ(CED)<bryan.mclellan@alaska.gov> Cc:DonnaAmbruz<dambruz@hilcorp.com>;TaylorWellman<twellman@hilcorp.com>;RyanRupert <Ryan.Rupert@hilcorp.com> Subject:FW:[EXTERNAL]RE:Paxton3AOGCC10Ͳ403PTD209Ͳ168Submitted08Ͳ26Ͳ21ͲSundryApplication BryanͲ Apologiesfornotincludingtheminitially,butHilcorpwouldliketoaddthebelowhighlightedsandstothePaxͲ03perf sundrycurrentlyunderreview.Pleaseletmeknowifyouhaveanyquestions,orwouldpreferthisinadifferent format.Thanks, SandPerfTopPerfBottomPerfTopPerfBottomTotalFootage (MD)(MD)(TVD)(TVD)(MD) BEL_10±2,750’±2,866’±1,480’±1,500’116’ BEL_12±2,902’±2,938’±1,506’±1,512’36’ BEL_13±2,985’±3,037’±1,520’±1,529’52’ BEL_15±3,114’±3,137’±1,542’±1,546’23’ BEL_16U±3,171’±3,221’±1,552’±1,560’50’ BEL_16L±3,264’±3,338’±1,567’±1,580’74’ BEL_20±3,540’±3,623’±1,614’±1,628’83‘ BEL_47±4,459’±4,475’±1,937’±1,944’16‘ BEL_48±4,490’±4,506’±1,951’±1,959’16‘ BEL_59u±5,308’±5,320’±2,469’±2,479’12‘ BEL_59L±5,333’±5,340’±2,489’±2,495’7‘ BEL_72u±5,468’±5,477’±2,598’±2,606’9‘ BEL_72L±5,488’±5,497’±2,614’±2,622’9‘ BEL_82±5,676’±5,685’±2,767’±2,775’9‘ BEL_93±6,026’±6,036’±3,051’±3,059’10‘ BEL_99u±6,270’±6,275’±3,250’±3,253’5‘ BEL_99L±6,282’±6,289’±3,259’±3,265’7‘ BEL_135L±6,874’±6,886’±3,740’±3,750’12‘ Ryan Rupert Kenai Ops Engineer (13146) 907-301-1736 (Cell) 907-777-8503 (Office) 3 From:Carlisle,SamanthaJ(CED)<samantha.carlisle@alaska.gov> Sent:Thursday,August26,20218:27AM To:DonnaAmbruz<dambruz@hilcorp.com> Cc:RyanRupert<Ryan.Rupert@hilcorp.com>;TaylorWellman<twellman@hilcorp.com> Subject:[EXTERNAL]RE:Paxton3AOGCC10Ͳ403PTD209Ͳ168Submitted08Ͳ26Ͳ21ͲSundryApplication Received for processing From:DonnaAmbruz<dambruz@hilcorp.com> Sent:Thursday,August26,20217:47AM To:AOGCCPermitting(CEDsponsored)<aogcc.permitting@alaska.gov> Cc:RyanRupert<Ryan.Rupert@hilcorp.com>;TaylorWellman<twellman@hilcorp.com> Subject:Paxton3AOGCC10Ͳ403PTD209Ͳ168Submitted08Ͳ26Ͳ21ͲSundryApplication ApplicationforSundryApproval Thankyou. Donna Ambruz Operations/RegulatoryTech KenaiAssetTeam HilcorpAlaska,LLC 3800CenterpointDrive,Suite1400 Anchorage,AK99503 907.777.8305ͲDirect dambruz@hilcorp.com The information contained in this email message is confidential and may be legally privileged and is intended only for the use of the individual or entity named above. If you are not an intended recipient or if you have received this message in error, you are hereby notified that any dissemination, distribution, or copy of this email is strictly prohibited. If you have received this email in error, please immediately notify us by return email or telephone if the sender's phone number is listed above, then promptly and permanently delete this message. While all reasonable care has been taken to avoid the transmission of viruses, it is the responsibility of the recipient to ensure that the onward transmission, opening, or use of this message and any attachments will not adversely affect its systems or data. No responsibility is accepted by the company in this regard and the recipient should carry out such virus and other checks as it considers appropriate. The information contained in this email message is confidential and may be legally privileged and is intended only for the use of the individual or entity named above. If you are not an intended recipient or if you have received this message in error, you are hereby notified that any dissemination, distribution, or copy of this email is strictly prohibited. If you have received this email in error, please immediately notify us by return email or telephone if the sender's phone number is listed above, then promptly and permanently delete this message. While all reasonable care has been taken to avoid the transmission of viruses, it is the responsibility of the recipient to ensure that the onward transmission, opening, or use of this message and any attachments will not adversely affect its systems or data. No responsibility is accepted by the company in this regard and the recipient should carry out such virus and other checks as it considers appropriate. 1. Operations Abandon Plug Perforations Fracture Stimulate Pull Tubing Operations shutdown Performed: Suspend Perforate Other Stimulate Alter Casing Change Approved Program Plug for Redrill Perforate New Pool Repair Well Re-enter Susp Well Other: Cap String Development Exploratory Stratigraphic Service 6. API Number: 7. Property Designation (Lease Number):8. Well Name and Number: 9. Logs (List logs and submit electronic data per 20AAC25.071):10. Field/Pool(s): 11. Present Well Condition Summary: Total Depth measured 7,414 feet N/A feet true vertical 4,179 feet N/A feet Effective Depth measured 7,290 feet 2,271 feet true vertical 4,078 feet 1,404 feet Perforation depth Measured depth See Attached Schematic True Vertical depth See Attached Schematic Tubing (size, grade, measured and true vertical depth)4-1/2" 12.6# / L-80 2,299' MD 1,408' TVD Packers and SSSV (type, measured and true vertical depth)ZXP Liner Top; N/A 2,271' MD 1,404' TVD N/A; N/A 12. Stimulation or cement squeeze summary: Intervals treated (measured): Treatment descriptions including volumes used and final pressure:N/A 13. Prior to well operation: Subsequent to operation: 15. Well Class after work: Daily Report of Well Operations Exploratory Development Service Stratigraphic Copies of Logs and Surveys Run 16. Well Status after work: Oil Gas WDSPL Electronic Fracture Stimulation Data GSTOR GINJ SUSP SPLUG Sundry Number or N/A if C.O. Exempt: Taylor Wellman 777-8449 Contact Name:Ryan Rupert Authorized Title:Operations Manager Contact Email: Contact Phone:777-8503 WINJ WAG 690 Water-Bbl MD 98' 2,520' 0 Oil-Bbl measured true vertical Packer 4-1/2"7,418'4,182' measured 3800 Centerpoint Dr Suite 1400 Anchorage, AK 99503 Ninilchik Unit / Beluga-Tyonek Gas PoolN/A measured TVD Tubing Pressure 740 Ninilchik Paxton 3 N/A FEE Lease Tract 163 Plugs Junk STATE OF ALASKA ALASKA OIL AND GAS CONSERVATION COMMISSION REPORT OF SUNDRY WELL OPERATIONS 209-168 50-133-20588-00-00 4. Well Class Before Work:5. Permit to Drill Number: 3. Address: 2. Operator Name:Hilcorp Alaska, LLC 17. I hereby certify that the foregoing is true and correct to the best of my knowledge. 321-172 Size 14. Attachments (required per 20 AAC 25.070, 25.071, & 25.283) 0 Gas-Mcf 14 Authorized Signature with date: Authorized Name: Casing Pressure Liner 857 0 Representative Daily Average Production or Injection Data 77' 2,499' 5,184' Conductor Surface Intermediate Production 7,500psi Casing Structural 20" 9-5/8" Length 5,750psi Collapse 3,090psi ryan.rupert@hilcorp.com Senior Engineer:Senior Res. Engineer: Burst 8,430psi 98' 1,441' t Fra O 6. A G L PG , R Form 10-404 Revised 3/2020 Submit Within 30 days of Operations By Meredith Guhl at 8:37 am, May 17, 2021 Digitally signed by Taylor Wellman (2143) DN: cn=Taylor Wellman (2143), ou=Users Date: 2021.05.14 15:32:42 -08'00' Taylor Wellman (2143) RBDMS HEW 5/17/2021 SFD 5/20/2021BJM 8/10/21 DSR-5/17/21 Rig Start Date End Date Cap String 4/21/21 4/21/21 3/8" cap string run to 6,325' MD. Daily Operations: Hilcorp Alaska, LLC Well Operations Summary API Number Well Permit NumberWell Name Paxton 3 50-133-20588-00 209-168 04/21/2021 - Wednesday _____________________________________________________________________________________ Updated by CRR 04-28-21 SCHEMATIC Cook Inlet Basin, Alaska Middle Ground Shoal Last Completed: 02-28-1992 Oil Well ->Water injector -> Gas producer for Platform Ninilchik Field Well #: Paxton 03 PTD: 209-168 API#: 50-133-20588-00-00 RKB=21’ AGL MISC. INFORMATION Short Joints at 4,902’ & 6,403’ MD Well Goes >70deg inc below 1600’ MD RKB=21’ AGL CASING DETAIL Size Type Wt/ Grade/ Conn ID Top Btm 20" Conductor 129# / X-56 / N/A N/A Surf 98' 9-5/8" Surface 40# / L-80 / BTC 8.835 Surf 2,520' 4-1/2" Production 12.6# / L-80 / IBT-M 3.958 2,234' 7,418' TUBING DETAIL 4-1/2" Tie-Back 12.6# / L-80 / Hyd 563 3.958 Surf 2,299' JEWELRY DETAIL No Depth ID Length Item 1 1,508’ Chemical Injection Mandrel 2 2,271’ >3.80 3’ Baker 4-1/2” ZXP Liner Top Packer with polish bore 3 2,274’ >3.80 10’ Liner Hanger 4 3,261’ 3.80” (milled) 6’ Stage Cement Collar 5 3,264’ 3.80” (Milled) 57’ 4-1/2” Overshot w/ 4’ Swallow Zone Top (MD) Btm (MD) Top (TVD) Btm (TVD) Length Perf Date Status BEL 105 6,370’ 6,379’ 3,331’ 3,338’ 9’ 10/24/2020 Open BEL 106 6,388’ 6,396’ 3,345’ 3,352’ 8’ 10/23/2020 Open B-4 6,432' 6,452' 3,381' 3,397' 20' 4/18/2010 Open 6,534' 6,542' 3,464' 3,471' 8' 4/20/2010 Open 6,627' 6,632' 3,540' 3,544' 5' 4/20/2010 Open 6,708' 6,715' 3,605' 3,611' 7' 4/18/2010 Open 6,722' 6,730' 3,617' 3,623' 8' 4/18/2010 Open OPEN HOLE / CEMENT DETAIL 9-5/8" 12-1/4" hole cemented with 263 bbls of 12 ppg Type-1 cement. 106 bbls returned to surface 4-1/2" Liner 8-1/2" hole Cemented with 78 bbls of 12.5 ppg Class G Lead and 226 bbls of 15.8 ppg Class G Tail. 100 bbls to surface. Stage #2 cemented with 65 bbls 15.8 ppg Class G. Capillary String (3/8”) Installed 04/21/22 Top Bottom MD 0’ 6,325’ TVD 0’ 3,294’ 1. Type of Request:Abandon Plug Perforations Fracture Stimulate Repair Well Operations shutdown Suspend Perforate Other Stimulate Pull Tubing Change Approved Program Plug for Redrill Perforate New Pool Re-enter Susp Well Alter Casing Other: _____Cap String_____ 2. Operator Name:4. Current Well Class:5. Permit to Drill Number: Exploratory Development 3. Address:Stratigraphic Service 6. API Number: 7. If perforating:8. Well Name and Number: What Regulation or Conservation Order governs well spacing in this pool? Will planned perforations require a spacing exception?Yes No 9. Property Designation (Lease Number):10. Field/Pool(s): 11. Total Depth MD (ft):Total Depth TVD (ft): Effective Depth MD: Effective Depth TVD: MPSP (psi):Plugs (MD):Junk (MD): 7,414'N/A Casing Collapse Structural Conductor Surface 3090 psi Intermediate Production Liner 7500 psi Packers and SSSV Type:Packers and SSSV MD (ft) and TVD (ft): 12. Attachments:Proposal Summary Wellbore schematic 13. Well Class after proposed work: Detailed Operations Program BOP Sketch Exploratory Stratigraphic Development Service 14. Estimated Date for 15. Well Status after proposed work: Commencing Operations:OIL WINJ WDSPL Suspended 16. Verbal Approval:Date:GAS WAG GSTOR SPLUG Commission Representative: GINJ Op Shutdown Abandoned Taylor Wellman 777-8449 Contact Name: Ryan Rupert Operations Manager Contact Email: Contact Phone: 777-8503 Date: Conditions of approval: Notify Commission so that a representative may witness Sundry Number: Plug Integrity BOP Test Mechanical Integrity Test Location Clearance Other: Post Initial Injection MIT Req'd? Yes No Spacing Exception Required? Yes No Subsequent Form Required: APPROVED BY Approved by: COMMISSIONER THE COMMISSION Date: Comm. Comm. Sr Pet Eng Sr Pet Geo Sr Res Eng 2,299' ZXP Liner Top Pkr; N/A 2,271' MD / 1,404' TVD; N/A 2,499'5750 psi 98' 1,441' 98' 2,520' ryan.rupert@hilcorp.com Perforation Depth TVD (ft):Tubing Size: 4,179'7,290'4,078'~ 1270 psi N/A 7,418' COMMISSION USE ONLY Authorized Name: Tubing Grade:Tubing MD (ft): See Attached Schematic 5,184'4,182'4-1/2"8430 psi 4-1/2"L-80 / 12.6# STATE OF ALASKA ALASKA OIL AND GAS CONSERVATION COMMISSION APPLICATION FOR SUNDRY APPROVALS 20 AAC 25.280 209-168 50-133-20588-00-00 Paxton-03 Fee Lease Tract 163 Ninilchik Unit / Beluga-Tyonek Gas Pool Length Size CO701C Hilcorp Alaska, LLC 3800 Centerpoint Dr, Suite 1400 Anchorage Alaska 99503 PRESENT WELL CONDITION SUMMARY TVD BurstMD 20" 9-5/8" 77' Perforation Depth MD (ft): See Attached Schematic Authorized Title: 17. I hereby certify that the foregoing is true and the procedure approved herein will not be deviated from without prior written approval. Authorized Signature: April 21, 2021 m n P s 66 t _ Form 10-403 Revised 3/2020 Approved application is valid for 12 months from the date of approval. By Samantha Carlisle at 9:20 am, Apr 08, 2021 321-172 Digitally signed by Taylor Wellman (2143) DN: cn=Taylor Wellman (2143), ou=Users Date: 2021.04.07 16:23:00 -08'00' Taylor Wellman (2143) DSR-4/8/21SFD 4/8/2021 SFD 4/8/2021 10-404 BJM 4/13/21 Comm 4/13/21 dts 4/13/2021 JLC 4/13/2021 RBDMS HEW 4/13/2021 Cap String Well: Paxton-03 Date: 4/7/2021 Well Name:Paxton-03 API Number:50-133-20588-00-00 Current Status:Producing Gas Well Permit to Drill Number:209-168 Regulatory Contact:Donna Ambruz (907) 777-8305 (O) First Call Engineer:Ryan Rupert (907) 777-8503 (O)(907) 301-1736 (M) Second Call Engineer:Ted Kramer (907) 777-8420 (O)(985) 867-0665 (M) Maximum Expected BHP:~ 1630 psi @ 3,623’ TVD (Based on a 0.45 psi/ft. gradient) Max. Potential Surface Pressure:~ 1270 psi (Using Max BHP minus 0.1 psi/ft. gas gradient to surface). Brief Well Summary Paxton-03 has been a steady producer since it came online in 2010. After a steady decline water/loading issues have started to load up the well recently. The well is now making ~650mcf and periodic water slugs to surface. The purpose of this work/sundry is to install a Capillary String in the well to allow for soap to be injected to help unload water. Notes Regarding Wellbore Condition x Inclination o Well goes > 70deg inclination at ~1600’ MD o Sail angle of ~80 from 1900’ – 3700’ MD, then rolls over to 35 degrees by PBTD x October-2020 EL Tractor perf adds o Repeatedly had to tractor from 1700-4500’ MD o Made it down to PBTD and tagged at 6918’ MD with a GPT assembly o Multiple 2-7/8” x 10’ perf guns on tractor made it down to 6375’+ MD x 2/18/17 EL Tractor logging assembly made it down to 6800’ MD (no tag) x No historic issues around LTP at 2271’ MD nor stage cement tool (since CT milled it out in 2010) at 3261’ MD, but use caution at these depths Procedure: 1. RU Cap String Truck. 2. Stab 3/8” capillary line into wellhead pack-off assembly. Make up BHA components. Install pack-off and pressure test against swab valve 250 psi low/3,000 psi high. 3. RIH with 3/8” capillary string to ±6325’ MD. a. Deviation will very likely stop us shallow of target depth b. Set cap string as deep as practical 4. Install slips and connect tubing to chemical injection pump. 5. Set spool of remaining line near well 6. RD cap string Unit, and turn well over to production. Attachments: 1. Proposed Schematic _____________________________________________________________________________________ Updated by CRR 4-7-21 PROPOSED SCHEMATIC Cook Inlet Basin, Alaska Middle Ground Shoal Last Completed: 02-28-1992 Oil Well ->Water injector -> Gas producer for Platform Ninilchik Field Well #:Paxton 03 PTD: 209-168 API#: 50-133-20588-00-00 RKB=21’ AGL MISC. INFORMATION Short Joints at 4,902’ & 6,403’ MD Well Goes >70deg inc below 1600’ MD Cap string to be installed to ±6325’ MD RKB=21’ AGL CASING DETAIL Size Type Wt/ Grade/ Conn ID Top Btm 20"Conductor 129# / X-56 / N/A N/A Surf 98' 9-5/8"Surface 40# / L-80 / BTC 8.835 Surf 2,520' 4-1/2"Production 12.6# / L-80 / IBT-M 3.958 2,234'7,418' TUBING DETAIL 4-1/2"Tie-Back 12.6# / L-80 / Hyd 563 3.958 Surf 2,299' JEWELRY DETAIL No Depth ID Length Item 1 1,508’Chemical Injection Mandrel 2 2,271’>3.80 3’Baker 4-1/2” ZXP Liner Top Packer with polish bore 3 2,274’>3.80 10’Liner Hanger 4 3,261’3.80” (milled)6’Stage Cement Collar 5 3,264’3.80” (Milled)57’4-1/2” Overshot w/ 4’ Swallow Zone Top (MD) Btm (MD) Top (TVD) Btm (TVD)Length Perf Date Status BEL 105 6,370’6,379’3,331’3,338’9’10/24/2020 Open BEL 106 6,388’6,396’3,345’3,352’8’10/23/2020 Open B-4 6,432'6,452'3,381'3,397'20'4/18/2010 Open 6,534'6,542'3,464'3,471'8'4/20/2010 Open 6,627'6,632'3,540'3,544'5'4/20/2010 Open 6,708'6,715'3,605'3,611'7'4/18/2010 Open 6,722'6,730'3,617'3,623'8'4/18/2010 Open OPEN HOLE / CEMENT DETAIL 9-5/8"12-1/4" hole cemented with 263 bbls of 12 ppg Type-1 cement. 106 bbls returned to surface 4-1/2" Liner 8-1/2" hole Cemented with 78 bbls of 12.5 ppg Class G Lead and 226 bbls of 15.8 ppg Class G Tail. 100 bbls to surface. Stage #2 cemented with 65 bbls 15.8 ppg Class G. 1. Operations Abandon Plug Perforations Fracture Stimulate Pull Tubing Operations shutdown Performed: Suspend Perforate Other Stimulate Alter Casing Change Approved Program Plug for Redrill Perforate New Pool Repair Well Re-enter Susp Well Other: Development Exploratory Stratigraphic Service 6. API Number: 7. Property Designation (Lease Number):8. Well Name and Number: 9. Logs (List logs and submit electronic data per 20AAC25.071):10. Field/Pool(s): 11. Present Well Condition Summary: Total Depth measured 7,414 feet N/A feet true vertical 4,179 feet N/A feet Effective Depth measured 7,290 feet 2,271 feet true vertical 4,078 feet 1,404 feet Perforation depth Measured depth See Attached Schematic True Vertical depth See Attached Schematic Tubing (size, grade, measured and true vertical depth)4-1/2" 12.6# / L-80 2,299' MD 1,408' TVD Packers and SSSV (type, measured and true vertical depth)ZXP Liner Top; N/A 2,271' MD 1,404' TVD N/A; N/A 12. Stimulation or cement squeeze summary: Intervals treated (measured): Treatment descriptions including volumes used and final pressure:N/A 13. Prior to well operation: Subsequent to operation: 15. Well Class after work: Daily Report of Well Operations Exploratory Development Service Stratigraphic Copies of Logs and Surveys Run 16. Well Status after work: Oil Gas WDSPL Electronic Fracture Stimulation Data GSTOR GINJ SUSP SPLUG Sundry Number or N/A if C.O. Exempt: Taylor Wellman 777-8449 Contact Name:Jake Flora Authorized Title:Operations Manager Contact Email: Contact Phone:777-8442 jake.flora@hilcorp.com Senior Engineer:Senior Res. Engineer: Burst 8,430psi `98 1,441'5,750psi Collapse 3,090psi 7,500psi Casing Structural 20" 9-5/8" Length 77' 2,499' 5,184' Conductor Surface Intermediate Production Authorized Signature with date: Authorized Name: 14 Casing Pressure Liner 980 0 Representative Daily Average Production or Injection Data 17. I hereby certify that the foregoing is true and correct to the best of my knowledge. 320-410 74 Size 14. Attachments (required per 20 AAC 25.070, 25.071, & 25.283) 0 Gas-Mcf 14 STATE OF ALASKA ALASKA OIL AND GAS CONSERVATION COMMISSION REPORT OF SUNDRY WELL OPERATIONS 209-168 50-133-20588-00-00 4. Well Class Before Work:5. Permit to Drill Number: 3. Address: 2. Operator Name:Hilcorp Alaska, LLC 730 Ninilchik Paxton 3 N/A FEE Lease Tract 163 Plugs Junk measured 3800 Centerpoint Dr Suite 1400 Anchorage, AK 99503 Ninilchik Unit / Beluga-Tyonek Gas PoolN/A measured TVD Tubing PressureOil-Bbl measured true vertical Packer 4-1/2"7,418'4,182' WINJ WAG 834 Water-Bbl MD 98' 2,520' 0 t Fra O 6. A G L PG , R Form 10-404 Revised 3/2020 Submit Within 30 days of Operations By Samantha Carlisle at 3:26 pm, Nov 18, 2020 Digitally signed by Taylor Wellman DN: cn=Taylor Wellman, ou=Users Date: 2020.11.18 13:34:25 -09'00' Taylor Wellman DSR-11/19/20 RBDMS HEW 11/20/2020 gls 12/8/20 Perforate SFD 11/24/2020 Rig Start Date End Date E-Line 10/23/20 10/24/20 Hilcorp Alaska, LLC Well Operations Summary API Number Well Permit NumberWell Name Paxton 3 50-133-20588-00 209-168 PTW and JSA. SIMOPS with AKE-Line and WellTec. Pick well shed off tree. Spot equipment and lubricator. Test tractor on e-line. Rig up lubricator, pressure test to 250 psi low and 3,500 psi high. Well flowing. RIH w/tractor and GPT down to 1,750' before we started to use tractor. Went down to 4,250' and turned off tractor. Made 2 soft tags at 6,918'. Pulled 500 lbs over tool string to get loose. Logged from 6,918' to 6,150'. Found FL at 6,726'. Pulled up to 1,400' and shut well in. Send logs to town. WellTec has 2 pages of checks and change oil on tractors after every run. Arm gun. RIH w/tractor, 2-7/8" x 8' HC Razor, 6 spf, 60 deg phase and tie into Anch log. Tractor from 1,647' to 4,500' and then turn off tractor and RIH. Ran correlation log and send to town. Got ok to perforate from 6,388' to 6,396'. Spotted and fired gun with 325 psi on well. Shook truck when fired but didn't blow tools up hole or gain any pressure. After 5 min - 327.4 psi, 10 min - 328.0 psi and 329.2 psi. All shots fired/gun dry. Rig down lubricator and secure well for the night. Will keep well shut in and let pressure build until in the morning for other perf zone. TP - 334.1 psi. 10/24/2020 - Saturday PTW and SIMOPS with WellTec and AKE-Line. Rig down crane and move to Pax 1 to pull shed off tree. Spot crane and rig up lubricator. PT to 250 psi low and 3,500 psi high. RIH w/WellTec tractor, 2-7/8" x 9' and tie into Anch Log. Run correlation log and send to town. Told to subtract 1' from log. Subtract 1' and spotted gun from 6,370' to 6,379' w/384.2 psi on well. Fired gun and started gaining pressure right away. Not a lot but at a steady pace. Went to 402 psi first min. 5 min - 421.7 psi, 10 min - 438.9 psi and 15 min - 449.2 psi. We had to tractor from 1,700' to 4,500' before we could turn it off. Like yesterday. Rig off Pax 3 and put shed back on. Move to Pax 4. TP - 466.7. That's about stable. 10/23/2020 - Friday Daily Operations: Gun 2 with tractor Gun 1 _____________________________________________________________________________________ Updated by DMA 11-06-20 SCHEMATIC Cook Inlet Basin, Alaska Middle Ground Shoal Last Completed: 02-28-1992 Oil Well ->Water injector -> Gas producer for Platform Ninilchik Field Well #: Paxton 03 Last Completed: 4/18/2010 PTD: 209-168 RKB=21’ AGL RKB=21’ AGL CASING DETAIL Size Type Wt/ Grade/ Conn ID Top Btm 20" Conductor 129# / X-56 / N/A N/A Surf 98' 9-5/8" Surface 40# / L-80 / BTC 8.835 Surf 2,520' 4-1/2" Production 12.6# / L-80 / IBT-M 3.958 2,234' 7,418' TUBING DETAIL 4-1/2" Tie-Back 12.6# / L-80 / Hyd 563 3.958 Surf 2,299' JEWELRY DETAIL No Depth ID Length Item 1 1,508’ Chemical Injection Mandrel 2 2,271’ >3.80 3’ Baker 4-1/2” ZXP Liner Top Packer 3 2,274’ >3.80 10’ Liner Hanger 4 3,261’ 3.80” (milled) 5.5’ Stage Cement Collar 5 3,264’ 3.80” (Milled) 57’ 4-1/2” Overshot w/ 4’ Swallow PERFORATION DETAIL Zone Top (MD) Btm (MD) Top (TVD) Btm (TVD) Length Size SPF Perf Date BEL 105 6,370’ 6,379’ 3,331’ 3,338’ 10’ 2-7/8” 6 @ 60° 10/24/2020 BEL 106 6,388’ 6,396’ 3,345’ 3,352’ 10’ 2-7/8” 6 @ 60° 10/23/2020 B-4 6,432' 6,452' 3,381' 3,397' 20' 3-1/8" 4 @ 60° 4/18/2010 6,534' 6,542' 3,464' 3,471' 8' 3-1/8" 6 @ 60° 4/20/2010 6,627' 6,632' 3,540' 3,544' 5' 3-1/8" 6 @ 60° 4/20/2010 6,708' 6,715' 3,605' 3,611' 7' 3-1/8" 6 @ 60° 4/18/2010 6,722' 6,730' 3,617' 3,623' 8' 3-1/8" 6 @ 60° 4/18/2010 OPEN HOLE / CEMENT DETAIL 9-5/8" 12-1/4" hole Cmt w/ 595 sks (263 bbls) of 12 ppg Type-1 cmt. 240sks (106 bbls) to surface 4-1/2" Liner 8-1/2" hole Cmt w/ 210 sks (78 bbls) of 12.5 ppg Class G Lead & 1,075 sks (226 bbls) of 15.8 ppg Class G Tail. 315 sks (100 bbls) to surface. Used 305 sks (65 bbls) of 15.8 ppg Class G on 2nd cementing of 4-1/2" casing. INCLINATION DETAIL KOP @ 170 ' MD/TVD Build: 4º/100'' from 170' - 2,240' MD Hold: 81º from 1,989' - 3,650' MD Drop: 1.25º/100' to 7,290' MD Final angle: 35.6º at 7,290' MD @ PBTD Azimuth: 355.3 deg. MISC. INFORMATION Marker Joints: 4,902 & 6,403’ BEL 105 6,370’ 6,379’3,331’ 3,338’10’2-7/8”6 @ 60°10/24/2020 BEL 106 6,388’ 6,396’3,345’ 3,352’10’2-7/8”6 @ 60°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dŵĞŵŽƌǇWWZK&ůŽŐŐĞĚĚŽǁŶƚŽϲϵϱϬ͛ǁŝƚŚŵƵůƚŝƉůĞƉĂƐƐĞƐ͘ϭϰ͛ĂƐƐĞŵďůǇĂƚ Ϯ͘ϭϮϱ͟ŵĂǆK͘EŽŝƐƐƵĞƐ͘ o ϰͬϭϴͬϭϬ͗ ƚǁŽĚŝĨĨĞƌĞŶƚƌƵŶƐŽĨ >ƚƌĂĐƚŽƌĐŽƵůĚŶ͛ƚŐĞƚƉĂƐƚϮϬϱϵ͛DǁŝƚŚĂϯ͘ϳϱ͟ǆϯ͛ĚƵŵŵǇ ƉĂƚĐŚ͕hd ĚŝĚŵĂŬĞ ŝƚƚŽϲϳϯϬ͛DǁŝƚŚĂϯͲϭͬϴ͟ǆϮϬ͛ ŐƵŶǁŝƚŚŶŽŝƐƐƵĞ͘ o ϰͬϭϳͬϭϬ͗ϮŶĚ dŵŝůůŽƵƚŵĂĚĞŝƚƚŽWdǁŝƚŚĂϯ͘ϴϬ͟ŵŝůů͘EŽŝƐƐƵĞƐ o ϰͬϭϲͬϭϬ͗>ƚƌĂĐƚŽƌ>ŶŽƚĞĚŝƐƐƵĞƐĂƌŽƵŶĚϯϮϲϭ͛ŝŶ^ĐĞŵĞŶƚĞƌŵŝůůŽƵƚƐĞĐƚŝŽŶ͘hůƚŝŵĂƚĞůǇ ŵĂĚĞŝƚƚŚƌŽƵŐŚ o ϰͬϭϱͬϭϬ͗dŵŽƚŽƌͬŵŝůůŽƵƚŽĨĐĞŵĞŶƚŝŶŐƉůƵŐƐͬĞƚĐ͙Ăƚ ϯϮϲϭ͛D͘DĂĚĞŝƚƚŽWd dŚĞŽďũĞĐƚŝǀĞŽĨƚŚŝƐŝŶƚĞƌǀĞŶƚŝŽŶŝƐƚŽĂĚĚƉĞƌĨƐƚŽŝŶĐƌĞĂƐĞ ƌĂƚĞ͕ǁŚŝůĞƉƌĞƐĞƌǀŝŶŐƚŚĞ ĞǆŝƐƚŝŶŐƌĂƚĞ Note : perf with CT due to deviation. tĞůůWƌŽŐŶŽƐŝƐ tĞůů͗WĂǆͲϬϯ ĂƚĞ͗ϭϬͬϭͬϮϬϮϬ ZŝƐŬƐ ZŝƐŬ DŝƚŝŐĂƚŝŽŶͬŽŶƚŝŶŐĞŶĐǇ ^ŚŽŽƚŝŶŐǁŚŝůĞĨůŽǁŝŶŐ ǆƉĞĐƚƵƉƚŽϭϰϬϬƉƐŝƵŶĚĞƌďĂůĂŶĐĞ͘DĂŬĞƐƵƌĞƉĞƌĨ,ŝƐƐůŝĐŬ͕ ĂŶĚŵŽǀĞŐƵŶŝŵŵĞĚŝĂƚĞůǇĂĨƚĞƌĨŝƌŝŶŐ͘ĂŶ ƉŝŶĐŚǁĞůůďĂĐŬĂďŝƚ ĂƚƐƵƌĨĂĐĞ͕ŝĨŶĞĐĞƐƐĂƌǇ͘dƐƚƌŝŶŐŝŶǁĞůůǁŝůůƉƌŽǀŝĚĞĂĐŚŽŬŝŶŐ ĞĨĨĞĐƚĂůƐŽ;ĐĂůŝďƌĂƚĞƚŽ'WdĚĂƚĂŽďƚĂŝŶĞĚĞĂƌůŝĞƌͿ Dŝůů ŽƵƚĂƌĞĂ ĨƌŽŵƐĞĐŽŶĚĂƌǇ ĐĞŵĞŶƚũŽď͘>ŝƐƐƵĞƐƉĂƐƐŝŶŐ ŚŝƐƚŽƌŝĐĂůůǇ dĂŬĞĐĂƌĞǁŚĞŶƉĂƐƐŝŶŐƚŚƌŽƵŐŚ^ƚĂŐĞ ĐĞŵĞŶƚĐŽůůĂƌͬŵŝůůŽƵƚ ĂƌĞĂĂƚϯϮϲϭ͛D ĞͲŽŝůWƌŽĐĞĚƵƌĞ͗ ϭ͘ D/ZhŽŝůĞĚdƵďŝŶŐhŶŝƚ Ϯ͘ WdKWĞƋƵŝƉŵĞŶƚ ƚŽϮϱϬƉƐŝ>Žǁͬϯ͕ϱϬϬƉƐŝ,ŝŐŚ͘;EŽƚŝĨǇK'ϮϰŚƌƐŝŶĂĚǀĂŶĐĞŽŶKWƚĞƐƚ͘Ϳ ϯ͘ ZhͲ>ŝŶĞĂƚĂĐƋƵŝƐŝƚŝŽŶhŶŝƚ͘ ϰ͘ Z/,ǁŝƚŚ'WdĂŶĚůŽĐĂƚĞĨůƵŝĚůĞǀĞů͘ ŽŶƚŝŶƵĞĚŽǁŶŚŽůĞĂŶĚůŝŐ ŚƚůǇƚĂŐWd͘WKK, ϱ͘ ZhƉĞƌĨŐƵŶƐƌĞŐĂƌĚůĞƐƐŽĨ&>;ũƵƐƚǁĂŶƚĂƐĂďĂƐĞůŝŶĞͿ͘ ϮͲϯͬϰ͟ ʹ ϯͲϯͬϴ͟ŐƵŶƐůŝŬĞůǇϰͲϲƐƉĨ ϲ͘ Z/,ĂŶĚƉĞƌĨŽƌĂƚĞƚŚĞĨŽůůŽǁŝŶŐŝŶƚĞƌǀĂůƐďŽƚƚŽŵƚŽƚŽƉ͗ ^ĂŶĚ dŽƉ;DͿ ƚŵ;DͿ dŽƉ;dsͿ ƚŵ;dsͿ &d >ͺϭϬϱ цϲϯϳϬ͛цϲϯϴϬ͛цϯϯϯϭ͛цϯϯϯϵ͛ϭϬ͛ >ͺϭϬϲ цϲϯϴϴ͛цϲϯϵϴ͛цϯϯϰϱ͛цϯϯϱϰ͛ϭϬ͛ Ă͘ ^ŚŽŽƚƉĞƌĨƐǁŚŝůĞǁĞůůŝƐĨůŽǁŝŶŐ ď͘ DĂŬĞĐŽƌƌĞůĂƚŝŽŶƉĂƐƐĂŶĚƐĞŶĚůŽŐŝŶƚŽKƉĞƌĂƚŝŽŶƐŶŐŝŶĞĞƌ͕ZĞƐĞƌǀŽŝƌŶŐŝŶĞĞƌĂŶĚƚŚĞ 'ĞŽůŽŐŝƐƚ͘ Đ͘hƐĞ'ĂŵŵĂͬ>ƚŽĐŽƌƌĞůĂƚĞ͘ Ě͘ ^ƉĂĐŝŶŐĂůůŽǁĂŶĐĞ ŝƐďĂƐĞĚŽŶKϳϬϭ͘WƌŽƉŽƐĞĚŝŶƚĞƌǀĂůƐĂƌĞŝŶƚŚĞĞůƵŐĂͬdǇŽŶĞŬ'ĂƐ WŽŽů͘ H 5HFRUGLQLWLDODQGPLQXWHWXELQJSUHVVXUHVDIWHUILULQJ Ĩ͘ ŽŶƐƵůƚǁŝƚŚZͬ'ĞŽďĞƚǁĞĞŶĞĂĐŚƉĞƌĨŝŶƚĞƌǀĂů͗ ŝ͘ ŶƚŚŽŶǇDĐŽŶŬĞǇ͗Z Ͳ ϱϮϵͲϲϭϵϵ ŝŝ͘ DĂƚƚŚĞǁWĞƚƌŽǁƐŬǇ͗'ĞŽ ʹ ϴϭϰͲϰϮϭͲϲϳϱϯ ϳ͘ KŶĐĞƐƵĨĨŝĐŝĞŶƚƉƌŽĚƵĐƚŝŽŶŚĂƐďĞĞŶ ĂĚĚĞĚ ƉĞƌZͬ'ĞŽ͕ZͲ>ŝŶĞ hŶŝƚĂŶĚŽŝůĞĚdƵďŝŶŐhŶŝƚ͘ ϴ͘ KEd/E'Ed͗/ĨĂǌŽŶĞŝƐƐŚŽǁŶƚŽŵĂŬĞƵŶĚĞƐŝƌĂďůĞƐĂŶĚͬǁĂƚĞƌ͕ƐĞƚƉĂƚĐŚĨŽƌƐŚƵƚͲŽĨĨ Ă͘ DhϰͲϭͬϮ͟ƉĂƚĐŚƉĞƌǀĞŶĚŽƌƌĞĐŽŵŵĞŶĚĂƚŝŽŶ ď͘ Z/,ĂŶĚƐĞƚŽǀĞƌŝĚĞŶƚŝĨŝĞĚ ƉĞƌĨŝŶƚĞƌǀĂů ϵ͘ dƵƌŶǁĞůůŽǀĞƌƚŽƉƌŽĚƵĐƚŝŽŶ͘ ƚƚĂĐŚŵĞŶƚƐ͗ ϭ͘ ĐƚƵĂů ^ĐŚĞŵĂƚŝĐ Ϯ͘ WƌŽƉŽƐĞĚ^ĐŚĞŵĂƚŝĐ (PetroSpec CT Unit has eLine Coil reel) >ͺϭϬϱ цϲϯϳϬ͛цϲϯϴϬ͛цϯϯϯϭ͛цϯϯϯϵ͛ϭϬ͛ >ͺϭϬϲ цϲϯϴϴ͛цϲϯϵϴ͛цϯϯϰϱ͛цϯϯϱϰ͛ϭϬ͛ BBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBB ZĞǀŝƐĞĚǇ͗ ZZ ϬϵͲϮϴͲϮϬϮϬ ^,Dd/&RRN,QOHW%DVLQ$ODVND 0LGGOH*URXQG6KRDO /DVW&RPSOHWHG 2LO:HOO !:DWHULQMHFWRU !*DVSURGXFHU IRU3ODWIRUP EŝŶŝůĐŚŝŬ&ŝĞůĚ tĞůůη͗WyϬϯ >ĂƐƚŽŵƉůĞƚĞĚ͗ ϰͬϭϴͬϮϬϭϬ Wd͗ϮϬϵͲϭϲϴ 5.% ¶$*/5.% ¶$*/ ^/E'd/> ^ŝǌĞ dǇƉĞ tƚͬ'ƌĂĚĞͬŽŶŶ /dŽƉ ƚŵ ϮϬΗ ŽŶĚƵĐƚŽƌ ϭϮϵηͬyͲϱϲͬEͬEͬ^ƵƌĨ ϵϴΖ ϵͲϱͬϴΗ ^ƵƌĨĂĐĞ ϰϬηͬ>ͲϴϬͬdϴ͘ϴϯϱ ^ƵƌĨ Ϯ͕ϱϮϬΖ ϰͲϭͬϮΗ WƌŽĚƵĐƚŝŽŶ ϭϮ͘ϲηͬ>ͲϴϬͬ/dͲD ϯ͘ϵϱϴ Ϯ͕ϮϯϰΖ ϳ͕ϰϭϴΖ dh/E'd/> ϰͲϭͬϮΗ dŝĞͲĂĐŬ ϭϮ͘ϲηͬ>ͲϴϬͬ,ǇĚϱϲϯ ϯ͘ϵϱϴ ^ƵƌĨ Ϯ͕ϮϵϵΖ :t>Zzd/> EŽ ĞƉƚŚ />ĞŶŐƚŚ /ƚĞŵ ϭ ϭ͕ϱϬϴ͛ŚĞŵŝĐĂů/ŶũĞĐƚŝŽŶDĂŶĚƌŝů Ϯ Ϯ͕Ϯϳϭ͛хϯ͘ϴϬ ϯ͛ĂŬĞƌϰͲϭͬϮ͟yW>ŝŶĞƌdŽƉWĂĐŬĞƌ ϯ Ϯ͕Ϯϳϰ͛хϯ͘ϴϬ ϭϬ͛>ŝŶĞƌ,ĂŶŐĞƌ ϰ ϯ͕Ϯϲϭ͛ϯ͘ϴϬ͟;ŵŝůůĞĚͿ ϱ͘ϱ͛^ƚĂŐĞĞŵĞŶƚŽůůĂƌ ϱ ϯ͕Ϯϲϰ͛ϯ͘ϴϬ͟;DŝůůĞĚͿ ϱϳ͛ϰͲϭͬϮ͟KǀĞƌƐŚŽƚǁͬϰ͛^ǁĂůůŽǁ WZ&KZd/KEd/> ŽŶĞ dŽƉ;DͿ ƚŵ;DͿ dŽƉ;dsͿ ƚŵ;dsͿ >ĞŶŐƚŚ ^ŝǌĞ ^W&WĞƌĨĂƚĞ Ͳϰ ϲ͕ϰϯϮΖ ϲ͕ϰϱϮΖ ϯ͕ϯϴϭΖ ϯ͕ϯϵϳΖ ϮϬΖ ϯͲϭͬϴΗ ϰ ΛϲϬΣ ϰͬϭϴͬϮϬϭϬ ϲ͕ϱϯϰΖ ϲ͕ϱϰϮΖ ϯ͕ϰϲϰΖ ϯ͕ϰϳϭΖ ϴΖ ϯͲϭͬϴΗ ϲΛϲϬΣ ϰͬϮϬͬϮϬϭϬ ϲ͕ϲϮϳΖ ϲ͕ϲϯϮΖ ϯ͕ϱϰϬΖ ϯ͕ϱϰϰΖ ϱΖ ϯͲϭͬϴΗ ϲΛϲϬΣ ϰͬϮϬͬϮϬϭϬ ϲ͕ϳϬϴΖ ϲ͕ϳϭϱΖ ϯ͕ϲϬϱΖ ϯ͕ϲϭϭΖ ϳΖ ϯͲϭͬϴΗ ϲΛϲϬΣ ϰͬϭϴͬϮϬϭϬ ϲ͕ϳϮϮΖ ϲ͕ϳϯϬΖ ϯ͕ϲϭϳΖ ϯ͕ϲϮϯΖ ϴΖ ϯͲϭͬϴΗ ϲΛϲϬΣ ϰͬϭϴͬϮϬϭϬ KWE,K>ͬDEdd/> ϵͲϱͬϴΗ ϭϮͲϭͬϰΗŚŽůĞŵƚǁͬϱϵϱƐŬƐ;ϮϲϯďďůƐͿŽĨϭϮƉƉŐdǇƉĞͲϭĐŵƚ͘ϮϰϬƐŬƐ;ϭϬϲďďůƐͿƚŽƐƵƌĨĂĐĞ ϰͲϭͬϮΗ >ŝŶĞƌ ϴͲϭͬϮΗŚŽůĞŵƚǁͬϮϭϬƐŬƐ ;ϳϴďďůƐͿŽĨϭϮ͘ϱƉƉŐůĂƐƐ'>ĞĂĚΘϭ͕ϬϳϱƐŬƐ;ϮϮϲďďůƐͿŽĨϭϱ͘ϴƉƉŐůĂƐƐ'dĂŝů͘ ϯϭϱƐŬƐ;ϭϬϬďďůƐͿƚŽƐƵƌĨĂĐĞ͘hƐĞĚϯϬϱƐŬƐ;ϲϱďďůƐͿŽĨϭϱ͘ϴƉƉŐůĂƐƐ'ŽŶϮŶĚĐĞŵĞŶƚŝŶŐŽĨϰͲϭͬϮΗĐĂƐŝŶŐ͘ /E>/Ed/KEd/> <KWΛϭϳϬΖDͬds ƵŝůĚ͗ϰǑͬϭϬϬΖΖĨƌŽŵϭϳϬΖ Ͳ Ϯ͕ϮϰϬΖD ,ŽůĚ͗ϴϭǑĨƌŽŵϭ͕ϵϴϵΖ Ͳ ϯ͕ϲϱϬΖD ƌŽƉ͗ϭ͘ϮϱǑͬϭϬϬΖƚŽϳ͕ϮϵϬΖD &ŝŶĂůĂŶŐůĞ͗ϯϱ͘ϲǑĂƚϳ͕ϮϵϬΖDΛWd ǌŝŵƵƚŚ͗ϯϱϱ͘ϯĚĞŐ͘ D/^͘/E&KZDd/KE DĂƌŬĞƌ:ŽŝŶƚƐ͗ ϰ͕ϵϬϮΘϲ͕ϰϬϯ͛ BBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBB ZĞǀŝƐĞĚǇ͗ ZZ ϬϵͲϮϴͲϮϬϮϬ WZKWK^ ^,Dd/ &RRN,QOHW%DVLQ$ODVND 0LGGOH*URXQG6KRDO /DVW&RPSOHWHG 2LO:HOO !:DWHULQMHFWRU !*DVSURGXFHU IRU3ODWIRUP EŝŶŝůĐŚŝŬ&ŝĞůĚ tĞůůη͗WyϬϯ >ĂƐƚŽŵƉůĞƚĞĚ͗ ϰͬϭϴͬϮϬϭϬ Wd͗ϮϬϵͲϭϲϴ 5.% ¶$*/5.% ¶$*/ ^/E'd/> ^ŝǌĞ dǇƉĞ tƚͬ'ƌĂĚĞͬŽŶŶ /dŽƉ ƚŵ ϮϬΗ ŽŶĚƵĐƚŽƌ ϭϮϵηͬyͲϱϲͬEͬEͬ^ƵƌĨ ϵϴΖ ϵͲϱͬϴΗ ^ƵƌĨĂĐĞ ϰϬηͬ>ͲϴϬͬdϴ͘ϴϯϱ ^ƵƌĨ Ϯ͕ϱϮϬΖ ϰͲϭͬϮΗ WƌŽĚƵĐƚŝŽŶ ϭϮ͘ϲηͬ>ͲϴϬͬ/dͲD ϯ͘ϵϱϴ Ϯ͕ϮϯϰΖ ϳ͕ϰϭϴΖ dh/E'd/> ϰͲϭͬϮΗ dŝĞͲĂĐŬ ϭϮ͘ϲηͬ>ͲϴϬͬ,ǇĚϱϲϯ ϯ͘ϵϱϴ ^ƵƌĨ Ϯ͕ϮϵϵΖ :t>Zzd/> EŽ ĞƉƚŚ />ĞŶŐƚŚ /ƚĞŵ ϭ ϭ͕ϱϬϴ͛ŚĞŵŝĐĂů/ŶũĞĐƚŝŽŶDĂŶĚƌŝů Ϯ Ϯ͕Ϯϳϭ͛хϯ͘ϴϬ ϯ͛ĂŬĞƌϰͲϭͬϮ͟yW>ŝŶĞƌdŽƉWĂĐŬĞƌ ϯ Ϯ͕Ϯϳϰ͛хϯ͘ϴϬ ϭϬ͛>ŝŶĞƌ,ĂŶŐĞƌ ϰ ϯ͕Ϯϲϭ͛ϯ͘ϴϬ͟;ŵŝůůĞĚͿ ϱ͘ϱ͛^ƚĂŐĞĞŵĞŶƚŽůůĂƌ ϱ ϯ͕Ϯϲϰ͛ϯ͘ϴϬ͟;DŝůůĞĚͿ ϱϳ͛ϰͲϭͬϮ͟KǀĞƌƐŚŽƚǁͬϰ͛^ǁĂůůŽǁ WZ&KZd/KEd/> ŽŶĞ dŽƉ;DͿ ƚŵ;DͿ dŽƉ;dsͿ ƚŵ;dsͿ >ĞŶŐƚŚ ^ŝǌĞ ^W&WĞƌĨĂƚĞ %(/B¶¶¶¶¶d %(/B¶¶¶¶¶d Ͳϰ ϲ͕ϰϯϮΖ ϲ͕ϰϱϮΖ ϯ͕ϯϴϭΖ ϯ͕ϯϵϳΖ ϮϬΖ ϯͲϭͬϴΗ ϰ ΛϲϬΣ ϰͬϭϴͬϮϬϭϬ ϲ͕ϱϯϰΖ ϲ͕ϱϰϮΖ ϯ͕ϰϲϰΖ ϯ͕ϰϳϭΖ ϴΖ ϯͲϭͬϴΗ ϲΛϲϬΣ ϰͬϮϬͬϮϬϭϬ ϲ͕ϲϮϳΖ ϲ͕ϲϯϮΖ ϯ͕ϱϰϬΖ ϯ͕ϱϰϰΖ ϱΖ ϯͲϭͬϴΗ ϲΛϲϬΣ ϰͬϮϬͬϮϬϭϬ ϲ͕ϳϬϴΖ ϲ͕ϳϭϱΖ ϯ͕ϲϬϱΖ ϯ͕ϲϭϭΖ ϳΖ ϯͲϭͬϴΗ ϲΛϲϬΣ ϰͬϭϴͬϮϬϭϬ ϲ͕ϳϮϮΖ ϲ͕ϳϯϬΖ ϯ͕ϲϭϳΖ ϯ͕ϲϮϯΖ ϴΖ ϯͲϭͬϴΗ ϲΛϲϬΣ ϰͬϭϴͬϮϬϭϬ KWE,K>ͬDEdd/> 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Operations Abandon Plug Perforations Fracture Stimulate Pull Tubing Operations shutdown Performed: Suspend Perforate Other Stimulate Alter Casing Change Approved Program Plug for Redrill Perforate New Pool Repair Well Re-enter Susp Well Other: CT drift Development Exploratory Stratigraphic Service 6. API Number: 7. Property Designation (Lease Number):8. Well Name and Number: 9. Logs (List logs and submit electronic data per 20AAC25.071):10. Field/Pool(s): 11. Present Well Condition Summary: Total Depth measured 7,414 feet N/A feet true vertical 4,179 feet N/A feet Effective Depth measured 7,290 feet 2,271 feet true vertical 4,078 feet 1,404 feet Perforation depth Measured depth See Attached Schematic True Vertical depth See Attached Schematic Tubing (size, grade, measured and true vertical depth)4-1/2" 12.6# / L-80 2,299' MD 1,408' TVD Packers and SSSV (type, measured and true vertical depth)ZXP Liner Top; N/A 2,271' MD 1,404' TVD N/A; N/A 12. Stimulation or cement squeeze summary: Intervals treated (measured): Treatment descriptions including volumes used and final pressure:N/A 13. Prior to well operation: Subsequent to operation: 15. Well Class after work: Daily Report of Well Operations Exploratory Development Service Stratigraphic Copies of Logs and Surveys Run 16. Well Status after work: Oil Gas WDSPL Electronic Fracture Stimulation Data GSTOR GINJ SUSP SPLUG Sundry Number or N/A if C.O. Exempt: Taylor Wellman 777-8449 Contact Name:Ryan Rupert Authorized Title:Operations Manager Contact Email: Contact Phone:777-8503 ryan.rupert@hilcorp.com Senior Engineer:Senior Res. Engineer: Burst 8,430psi `98 1,441'5,750psi Collapse 3,090psi 7,500psi Casing Structural 20" 9-5/8" Length 77' 2,499' 5,184' Conductor Surface Intermediate Production Authorized Signature with date: Authorized Name: 12 Casing Pressure Liner 936 0 Representative Daily Average Production or Injection Data 17. I hereby certify that the foregoing is true and correct to the best of my knowledge. 320-014 82 Size 14. Attachments (required per 20 AAC 25.070, 25.071, & 25.283) 0 Gas-Mcf 12 STATE OF ALASKA ALASKA OIL AND GAS CONSERVATION COMMISSION REPORT OF SUNDRY WELL OPERATIONS 209-168 50-133-20588-00-00 4. Well Class Before Work:5. Permit to Drill Number: 3. Address: 2. Operator Name:Hilcorp Alaska, LLC 820 Ninilchik Paxton 3 N/A FEE Lease Tract 163 Plugs Junk measured 3800 Centerpoint Dr Suite 1400 Anchorage, AK 99503 Ninilchik Unit / Beluga-Tyonek Gas PoolN/A measured TVD Tubing PressureOil-Bbl measured true vertical Packer 4-1/2"7,418'4,182' WINJ WAG 934 Water-Bbl MD 98' 2,520' 0 t Fra O 6. A G L PG , R ft Form 10-404 Revised 3/2020 Submit Within 30 days of Operations By Samantha Carlisle at 9:28 am, Sep 28, 2020 Digitally signed by Taylor Wellman DN: cn=Taylor Wellman, ou=Users Date: 2020.09.25 17:01:44 -08'00' Taylor Wellman SFD 9/29/2020 DSR-9/28/2020 RBDMS HEW 9/30/2020 CT drifft gls 10/20/2020 Rig Start Date End Date E-Coil 1/12/20 9/22/20 Daily Operations: Hilcorp Alaska, LLC Well Operations Summary API Number Well Permit NumberWell Name Paxton 3 50-133-20588-00 209-168 01/13/2020 - Monday PTW/JSA. Fire equipment. 1.75" x .156 wall QT-80 E-coil with 5/16" wire line. Cruz Swapping cranes. Remove Electrical connections and SS tubing from Pax 4 well house. Remove well house and stage on edge of pad. Pick Paxton 4 cap string spool and place to adjacent side of well to prep for cap string truck. Spot AK E-line logging truck next to Petrospec CTU. Connect logging truck to 5/16" E coil hub. Test the connection. Re position Hot oil truck and RU. Pick Injector head. Make up 5 sticks of 4" lubricator. Inspect E-coil's 5 shear sub pins. Make up E-line GPT (2.0" OD) , sucker rod x over, and slick line 3.25" dual taper gauge ring . GR slightly over 2-7/8" gun swell when shooting in gas. Stab on well. Fluid pack with 60/40 methanol water. Pressure test lubricator 250 low, 3,500 psi high. Bleed down. Open swab valve. Prior to intervention daily gas rate was 927 K. RIH for GPT/Gauge ring run. RIH speed 42 ft/min. Stack weight at 2,535'. Pick up and over pull to 15,500 lbs, 7,900 lbs over string weight. Attempt to run back in and stack weight. PU and pull pipe into tension slightly over string weight to 8,000 lbs, 400 lbs over string weight and hold in tension. Review Schematic, tubing tally, and directional survey. Deviation at current depth of 81°. No restrictions or jewelry at depth. Continue to work string in/out. Production flow rate while coil intervention had dropped from 927 K and leveled off at 887 K. Well unloads about .2 bbls of produced fluids per day. CT moving OOH to 2,500' and over pulled. Work CT down and up. Pipe free RIH to 2,554' stacked out. E-coil shear sub pinned with 6 brass screws valued at 2 K per. 12K over string weight. Called Pollard slick line for availability of 1.75" overshot for 1.19" fish neck. Fishing tools and crew available if need be. Called town to discuss job status and current options. Continue to work pipe. Research abilities of Petrospec Equipment. Hydraco Industries. Injector WD-45. Push/Pull 45,000 lbs. Co. Man use personnel lift to inspect injector head/ chains. Initial view from the ground looked like chain assembly was moving erratically and binding along with chattering noises. After analysis of injector head it is believed that the CT is not stuck at the 2,554' BHA depth and the issue is near surface due to only 1/2" of pipe travel between snubbing the CT and pulling in tension. There would be more sinusoidal/helical buckling while snubbing and more travel from pipe stretch while in tension. Line up hot oil truck to lubricator. Trickle in 60/40 methanol water to eliminate the possibility of a ice plug in lubricator or near surface wellhead. Pumped .5 bbls. Attempt to RIH/POOH with no change. Inspect CTU injector head again. Adjust vertical chain tension and horizontal chain traction. PU in tension CTU POOH at 50 ft/min. Chains start chattering and charge pressure gauge bouncing erratically. 01/12/2020 - Sunday Petrospec gathering parts and materials. Fix HAK hot oil truck pump line check valve/bleed assembly fittings. Arrive on location. PTW/JSA. RU BOPE stack on well. Make up hard line from hot oil truck to BOPE stack. and choke skid. Choke skid to return tank. Inspect CTU injector head. Start BOPE test. 24 hr BOPE test witness notification sent 1/11/2020 @ 0900 hrs. Witness waived via email by Jim Regg on 1/11/2020 @ 12:36 PM. Test all rams and vlaves 250/3,500 psi with 60/40 Methanol for 5 minutes. Dispatch doyle's fuel service for AM delivery of diesel. All surface lines closed and secure. Location walk around completed. SDFN. Make up E-line GPT (2.0" OD) , sucker rod x over, and slick line 3.25" dual taper gauge ring . G Stack weight at 2,535'. Pick up and over pull to 15,500 lbs, y. Deviation at current depth of 81°f Test all rams and vlaves 250/3,500 psi with 60/40 Methanol for 5 minutes. Dispatch doyle's fuel service for AM delivery of diesel. All surface lines closed and Rig Start Date End Date E-Coil 1/12/20 9/22/20 Daily Operations: Hilcorp Alaska, LLC Well Operations Summary API Number Well Permit NumberWell Name Paxton 3 50-133-20588-00 209-168 01/14/2020 - Tuesday Continue to Remove 1.75" CT from Pax 3. Manually fill injector head brakes with hydraulic oil. Getting 200-300' each time. Pulled to 1,491'. Not able to get injector head brakes to release. Drop chain traction and tension. Back off chain tension as much as possible. Dial up reel tension and POOH with CTU slipping through injector head. Pull remaining 1,491' OOH with reel tension. At surface. Close swab valve. Pop off well. Break down AK E-line tools. Rig down Petrospec CTU. Location secure. 09/22/2020 - Tuesday Discussed job with reservoir team, and decided that given current well production, we would not be pursuing the sundried perforations before the sundry expires in Jan-2021. Closing job/sundry. No actual downhole changes were made on this well. Injector head locked up. Not able to travel either direction. Injector motors friction brakes are setting due to lack of minimum required circuit pressure. Hydraulic charge pump pressure of 400 psi required to release injector brakes. Charge pressure bouncing around at 250 psi. Inspection porthole on high pressure P-14 hydraulic pump filter is milky. Hydraulic oil is being introduced with air. Restriction in filter flow could cause cavitation and a loss of pressure in the charge pump circuit. Locate Enerpac manual hydraulic pump/ high pressure hose, 0-1000 psi pressure gauge , isolation valves and JIC/Swedgelock fittings. Plumb in line to injector brakes. Attempt to manually release brakes. Brakes will not build pressure. Reconnect hydraulics from power pack to brake line. PU. CT is free. POOH 250' before brakes started to engage Perform same sequence on the 2nd injector brake. No pressure. Remove Enterpac assembly and replace brake supply line from power pack . PU . Coil free. POOH 300' and brakes engaging. Current depth 1,896'. Add 5 gallons of hydraulic oil to tank. Oil is now in sight glass. Hold any further attempts to pull coil. Petrospec needs to talk to the Injector head manufacturer prior to any further decisions. Continue to monitor well and equipment. Perform walk arounds every 15 minutes. Discussed job with reservoir team, and decided that given current well production, we would not be pursuing the sundried perforations before t Closing job/sundry. No actual downhole changes were made on this well. Did not perf well. CTU issues (Petrospec coil ) gls Petrospec needs to talk to the Injector head manufacturer prior to any further decisions. Injector head locked up. Not a _____________________________________________________________________________________ Revised By: TDF 10-23-2013 SCHEMATIC Cook Inlet Basin, Alaska Middle Ground Shoal Last Completed: 02-28-1992 Oil Well ->Water injector -> Gas producer for Platform Ninilchik Field Well #: PAX 03 Last Completed: 4/18/2010 PTD: 209-168 RKB=21’ AGL RKB=21’ AGL CASING DETAIL Size Type Wt/ Grade/ Conn ID Top Btm 20" Conductor 129# / X-56 / N/A N/A Surf 98' 9-5/8" Surface 40# / L-80 / BTC 8.835 Surf 2,520' 4-1/2" Production 12.6# / L-80 / IBT-M 3.958 2,234' 7,418' TUBING DETAIL 4-1/2" Tie-Back 12.6# / L-80 / Hyd 563 3.958 Surf 2,299' JEWELRY DETAIL No Depth Length Item 1 1,508’ Chemical Injection Mandrill 2 2,271’ 3’ Baker 4-1/2” ZXP Liner Top Packer 3 2,274’ 10’ Liner Hanger 4 3,261’ 5.5’ Stage Cement Collar 5 3,264’ 57’ 4-1/2” Overshot w/ 4’ Swallow PERFORATION DETAIL Zone Top (MD) Btm (MD) Top (TVD) Btm (TVD) Length Size SPF Perf Date B-4 6,432' 6,452' 3,381' 3,397' 20' 3-3/8" 6 @ 60° 4/18/2010 6,534' 6,542' 3,464' 3,471' 8' 3-3/8" 6 @ 60° 4/20/2010 6,627' 6,632' 3,540' 3,544' 5' 3-3/8" 6 @ 60° 4/20/2010 6,708' 6,715' 3,605' 3,611' 7' 3-3/8" 6 @ 60° 4/18/2010 6,722' 6,730' 3,617' 3,623' 8' 3-3/8" 6 @ 60° 4/18/2010 OPEN HOLE / CEMENT DETAIL 9-5/8" 12-1/4" hole Cmt w/ 595 sks (263 bbls) of 12 ppg Type-1 cmt. 240sks (106 bbls) to surface 4-1/2" Liner 8-1/2" hole Cmt w/ 210 sks (78 bbls) of 12.5 ppg Class G Lead & 1,075 sks (226 bbls) of 15.8 ppg Class G Tail. 315 sks (100 bbls) to surface. Used 305 sks (65 bbls) of 15.8 ppg Class G on 2nd cementing of 4-1/2" casing. INCLINATION DETAIL KOP @ 170 ' MD/TVD Build: 4º/100'' from 170' - 2,240' MD Hold: 81º from 1,989' - 3,650' MD Drop: 1.25º/100' to 7,290' MD Final angle: 35.6º at 7,290' MD @ PBTD Azimuth: 355.3 deg. MISC. INFORMATION Marker Joints: 4,902 & 6,403’ THE STATE 01ALASKA GOVERNOR MIKE DUNLEAVY Bo York Operations Manager Hilcorp Alaska, LLC 3800 Centerpoint Drive, Suite 1400 Anchorage, AK 99503 Re: Ninilchik Field, Beluga/Tyonek Gas Pool, Paxton 3 Permit to Drill Number: 209-168 Sundry Number: 320-014 10Z7aU,welnX Alaska Oil and Gas Conservation Commission 333 West Seventh Avenue Anchorage, Alaska 99501-3572 Main: 907.279.1433 Fax: 907.276.7542 www. a ogc c.al aska.g ov 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, Je e tvce Chair nn DATED this 1 V day of January, 2020. "BAMS � AN 13 2020 STATE OF ALASKA ALASKA OIL AND GAS CONSERVATION COMMISSION APPLICATION FOR SUNDRY APPROVALS 20 AAC 25 280 �». JAS! 10 K,20 AGGCC 1. Type of Request: Abandon ❑ Plug Perforations ❑ Fracture Stimulate ❑ Repair Well ❑ Operations shutdown❑ Suspend ❑ Perforate E] • Other Stimulate ❑ Pull Tubing ❑ Change Approved Program❑ Plug for Redrill ❑ Perforate New Pool ❑ Re-enter Susp Well ❑ Alter Casing ❑ Other: N2 ❑� 2. Operator Name: Hilcorp Alaska, LLC 4. Current Well Class: 5. Permit to Drill Number: L7 - 0-11 Exploratory ❑ Development 121- Stratigraphic ❑ Service ❑ 209-168 . 3. Address: 3800 Centerpoint Drive, Suite 1400 6. API Number: Anchorage, Alaska 99503 50-133-20588-00-00 - 7. If perforating: 8. Well Name and Number: What Regulation or Conservation Order governs well spacing in this pool? CO 701 d- Will planned perforations require a spacing exception? Yes El No 1Z ' �' Ninilchik Unit Paxton 3 9. Property Designation (Lease Number): 10. Field/Pool(s):D�� Fee Lease Tract 163 Ninilchik Unit / , l edJ?abl 11. PRESENT WELL CONDITION SUMMARY Total Depth MD (ft): Total Depth TVD (ft): Effective Depth MD: Effective Depth TVD: MPSP (psi): Plugs (MD): Junk (MD): 7,414' . 4,179' 7,290' 4,078' -571 psi N/A N/A Casing Length Size MD TVD Burst Collapse Structural Conductor 77' 20" 98' 98 Surface 2,499' 9-5/8" 2,520' 1,441' 5750 psi 3090 psi Intermediate Production 5,184' 4-1/2" 7,418' 4,182' 8430 psi 7500 psi Liner Perforation Depth MD (ft): Perforation Depth TVD (ft): Tubing Size: Tubing Grade: Tubing MD (ft): See Attached Schematic See Attached Schematic 4-1/2" L-80 / 12.6# 2,299' Packers and SSSV Type: Packers and SSSV MD (ft) and TVD (ft): ZXP Liner Top Pkr; N/A 2,271' MD / 1,404' TVD; 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: January 15th, 2020 OIL ❑ WINJ ❑ WDSPL ❑ ❑ Suspended GAS Q - 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. Contact Name Christina Twogood Authorized Name Bo York 777-8345 Contact Email CtW0000d(@hIIC0rp.com Authorized Title Operations Manager Contact Phone 777-8443 Authorized Signature ` Date COMMISSION USE ONLY Conditions of approval: Notify Commisssioonn so that a representative may witness Sundry Number: ,�7o/ 0 /i / �(4 Plug Integrity ❑ BOP Test L� Mechanical Integrity Test ❑ Location Clearance E]G Other: 50U I'J': ¢t to 113DMS(± j 13 2020 .IAN Post Initial Injection MIT Req'd? Yes ❑ No ❑ Spacing Exception Required? Yes ❑ No Subsequent Form Required: Ib .— C-( r APPROVED BY 1 \ V , /J Approved by: COMMISSIONER V THE COMMISSION Datel U Form 1x403 Mvised 111201 Approved pplication is valid for 12 months from the date of QR, NAub tmi Form and •A do Writs in DI'i ate R Ililcury Alaska, LL Well Prognosis Well: Paxton 3 Date: 1/10/2020 Well Name: Paxton 3 API Number: 50-133-20588-00-00 Current Status: Leg: N/A Estimated Start Date: January 15th, 2020 Rig: Coiled Tubing Reg. Approval Req'd? Yes Date Reg. Approval Rec'vd: Regulatory Contact: Donna Ambruz 777-8305 Permit to Drill Number: 209-168 First Call Engineer: Christina Twogood (907) —777-8443(0) (907) 378-7323 (M) Second Call Engineer: Ted Kramer (907) 777-8420 (0) (985) 867-0665 (M) AFE Number: Max. Expected BHP: — 734 psi @ 1,630' TVD (Based on 0.45 psi/ft gradient) Max. Potential Surface Pressure: — 571 psi (Based on expected BHP and gas gradient to surface (0.10psi/ft)) Brief Well Summary Paxton 3 was drilled and completed in March 2010 as a grassroots well to target gas sands in the Beluga formation. In April 2010 five intervals of the B-4 zone were perforated. The purpose of this work/sundry is to perforate the BEL -10, BEL -13, BEL -16 and B-20 sands. Notes Regarding Wellbore Condition • The well is currently producing approx. 1 MMSCFD. Safety Concerns • Pre -job safety meetings and tailgate safety meetings will be conducted at each appropriate phase of the procedure. • Discuss 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 Coiled Tubing Procedure: 1. MIRU Coiled Tubing Unit and BOP equipment. tv 2. RU Coiled Tubing Stripper and Lubricator. 3. PT BOPE, Stripper and Lubricatorlo 250 psi Low / 3,500 psi High. (Notify AOGCC 24 hrs in advance r/ on BOP test.) 6./w, Helti6r- �.'iy5f- 4. RU E -Line Data Acquisition Unit. 5. RIH with GPT tool and find fluid level. If fluid level is over the depth of the new perfs, discuss using nitrogen with the oaerations engineer. Lc yq j A4v 6. If needed, RU nitrogen truck, pressure upon well and push water back into the formation. K Hilton, Almku, LL 1. RU perf guns. 2. RIH and perforate the following intervals: Well Prognosis Well: Paxton 3 Date:1/10/2020 Zone Sand Top (MD) Btm (MD) Top (TVD) Btm (TVD) FT Beluga BEL -10 +2,740' +2,877' +1,478' +1,502' 137 Beluga BEL -13 +2,970' +3,045' +1,517' +1,531' 75 Beluga BEL -16 +3,150' +3,340' +1,548' +1,580' 190 Beluga BEL -20 +3,528' +3,637' +1,612' +1,630' 109 a. Well may be shot flowing. 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 per intervals. d. Make correlation pass and send log in to Operations Engineer, Reservoir Engineer and the Geologist. e. Use Gamma/CCL to correlate. f. Spacing allowance is based on Cg701 Proposed intervals are in the Belu; Iflefi,R— Pool. 2,'c� g. Record tubing pressure before and after each perforating run. h. Record 5, 10 and 15 minutes pressures after firing guns. 3. POOH. 4. RD E -Line Unit and Coiled Tubing Unit. 5. Turn well over to production. Coiled Tubing Procedure (N2 Contingency): 1. MU standard coil reel and BHA. 2. RU N2 pumping unit. 3. Drop ball and come online with N2 and jet well dry. 4. RIH with coiled tubing and BHA and tag. 5. PU approx. 5 ft and displace well fluids with Nitrogen. 6. Once well is dry, verify desired surface pressure to leave on well with Operations Engineer (OE). 7. POOH w/ coil. LD BHA. 8. RD standard coil reel. 9. RU E -Coil reel. 10. Proceed with Coiled Tubing Procedure for perforating. E -line Procedure (Contingency): 1. If these zones produce sand and/or water and need to be isolated: 2. MIRU E -Line, PT lubricator to 250 psi Low / 2,000 psi High. 3. RIH and set 4-1/2" Casing Patch or set CIBP above the zone and dump 25' of cement on top of the plug. Attachments: 1. Current Schematic 2. Proposed Schematic 3. Coiled Tubing BOPE Schematic 2T K Ililcorp Alaska.I.1.0 9,s RKB=21' AGL 2 3 SCHEMATIC CASING DETAIL Ninilchik Field Well #: PAX 03 Last Completed: 4/18/2010 PTD: 209-168 Size Type Wt/Grade/Conn ID Top Stm 20" Conductor 129q/X-56/N/A N/A Surf 98' 9-5/8" Surface 40k/L-80/BTC 8.835 Surf 2,520' 4-1/2" Production 12.66/L-80/IBT-M 1 3.958 2,234' 7,418' TUBING DETAIL 4-1/2" Tie -Back 12.6M/L-80/Hyd 563 3.958 Surf 2,299' JEWELRY DETAIL No Depth Length Item 1 1,508' I Size Chemical Injection Mandrill 2 2,271' 3' Baker 4-1/2" ZXP Liner Top Packer 3 2,274' 10' Liner Hanger 4 3,261' 5.5' Stage Cement Collar 5 3,264' 57' 4-1/2"Overshot w/4'SwaIlow PERFORATION DETAIL Zone Top (MD) Btm (MD) Top (TVD) Btm (ND) Length I Size SPF Perf Date 6,432' 6,452' 3,381' 3,397' 20' 3-3/8" 6 @ 60° 4/18/2010 6,534' 6,542' 3,464' 3,471' 8' 3-3/8" 6 @ 60° 4/20/2010 B-4 6,627 6,632' 3,540' 3,544' 5' 3-3/8"6 @ 60° 4/20/2010 6,708' 6,715' 3,605' 3,611' 7' 3-3/8" 6 @ 60° 4/18/2010 6,722 6,730 3,617' 3,623' 8' 3-3/8" 6 @ 60° 4/18/2010 OPEN HOLE / CFMFNT nFTGII 9-5/8" 12-1/4" hole Cmt w/ 595 sks (263 bbls) of 12 ppg Type -1 cmt. 240sks (106 bbls) to surface 4-1/2" Liner 8-1/2" hole Cmt w/ 210 sks (78 bbls) of 12.5 ppg Class G Lead & 1,075 sks (226 bbls) of 15.8 ppg Class G Tail. 1 315 sks (100 bbls) to surface. Used 305 sks (65 bblO of 15.8 ppg Class G on 2nd cementing of 4-1/2" casing. �'.4 INCLINATION DETAIL KOP @ 170' MD/IVD 5 Build: 42/100" from 170'- 2,240' MD ' Hold: 812 from 1,989'-3,650' MD Drop: 1.259/100' to 7,290' MD Final angle: 35.60 at 7,290' MD @ PBTD Azimuth: 355.3 deg. L' attr jJ .1! TD=7,4147AD PBTD=7,218WD MAX HOLE ANGLE =81AP A 2.479 MISC. INFORMATION Marker Joints: 4,902 & 6,403' Revised By: TDF 10-23-2013 KPROPOSED SCHEMATIC cors Alaska, LLC RKB=21' AGL TD=7,414'ND PBTD=7,290ND MAX HOLE ANGLE= 81.90 a2,479 CASING DETAIL Ninilchik Field Well #: PAX 03 Last Completed: 4/18/2010 PTD: 209-168 Size Type Wt/Grade/Conn ID Top Btm 20" Conducor 129#/X-56/N/A N/A Surf 98' 9-5/8" Surface 40#/L-80/BTC 8.835 Surf 2,520' 4-1/2" Production 12.6#/L-80/IBT-M 3.958 2,234' 7,418' TUBING DETAIL 4-1/2" 1 Tie -Back I12.6#/ L-80/ Hyd 563 3.958 Surf 2,299' JEWELRY DETAIL No Depth Length Item 1 1,508' Size Chemical Injection Mandril 2 2,271' 3' Baker 4-1/2" ZXP Liner Top Packer 3 2,274' 10' Liner Hanger 43,261' TBD S.5' Stage Cement Collar 5 3,264' S7' Z1/2" Overshot w/4'Swallow PERFORATION DFTAII ne Top (MD) Btm (MD) Top (TVD) Btm (ND) Length Size SPF Perf Date .10 +21740' +_2,877' +1,478' +1,502' 137' TBD TBD TBD X13 +_2,970' +3,045' +1,517' +1,531' 75' TBD TBD TBD -16 +3,150' +3,340' +1,548' +1,580' 190' TBD TBD TBD .-20 ±3,528' +3,637' +i,61Y +1,630' 109' TBD TBD TBD 6,432' 6,452' 3,381' 1 3,397' 1 20' 3-3/8" 6 @ 60° 4/18/2010 6,534' 6,542' 3,464' 3,471' 8' 3-3/8" 6 @ 60° 4/20/2010 .4 6,627' 6,632' 3,540' 3,544' 1 5' 3-3/8" 6 @ 60' 4/20/2010 6,708' 6,715' 3,605' 3,611' 1 7' 3-3/8" 6 @ 60° 4/18/2010 6,722' 6,730' 3,617' 3,623' 8' 3-3/8" 6 @ 60° 4/18/2010 OPEN HOLE/ CEMENT DETAIL 12-1/4" hole Cmt w/595 sks (263 bbls) of 12 ppg Type -1 cmt. 240sks (106 bbls) to surface -1/2" 1 8-1/2" hole Cmt w/210 sks (78 bbls) of 12.5 ppg Class G Lead & 1,075 sks (226 bbls) of 15.8 ppg Class G Tail. .finer 315 sks (100 bbls) to surface. Used 305 sks (65 bbls) of 15.8 Doe Class G on 2nd cementing of 4-1/7" racing. INCLINATION DETAIL @ 170' MD/TVD d:49/100"from 170'-2,240'MD d: 819 from 1,989'-3,650'MD p: 1.259/100' to 7,290' MD it angle: 35.69 at 7,290' MD @PBTD nuth: 355.3 deg. MISC. INFORMATION Marker Joints: 4,902 & 6,403' Revised By: CMT 01-30-2020 XiMidik Vntl PatlnnH rv:6nOl9 iobIO63.X fi �<' IeievM acceaa NOOKK ® -sJX ORL IineM1es) ' isa qct➢ .&WwnNf lleam 056 i{G MdM1ual VaM l'3 -]/16`5K LW MinWIwMJ', Yd/r6"9'. PNF rt'itli/fi eV R24 GaskA 1( 54 R24 R26 ��g m e BVK�n re EX. WEIGXJILSS) � _, __ failed Tubing XydraCo aS%Injector MeatlB Gooseneck 47M lba Weight-4700lbs �— 500opsl R Sbippar 1. 16: L6J2 Iba 25'PERFGUNS. 250 Ibs XVOWVLIC VMBILICPL ]W01b 1-3/40IIMT bina'Mn10 I00 Ibs 1 LIFT I UM IBS- Fst NOOKLOPO 1. [pmbi Blind/Shear Ram 2. 1.75" CT Comb, Pipe/Slip Ram STANDARD WELL PROCEDURE tlileorp Alaska, LLG 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 v1 Page 1 of 1 Schwartz, Guy L (CED) From: Bo York <byork@hilcorp.com> Sent: Friday, January 10, 2020 11:45 AM To: Schwartz, Guy L (CED) Cc: Holly Tipton; Christina Twogood - (C); Ted Kramer Subject: Hilcorp Expedited Sundry Requests - Gas Well Perforations Guy - Three sundries are being submitted to you today (10 January) for perforations to existing Kenai gas wells. The three sundries are: • Kalotsa 4 o T65-7684'-7737' MD • Paxton 3 o BEL -10-2740'-2877' MD o BEL -13-2970'-3045' MD o BEL-16-3150'-3340'MD o BEL -20-3528'-3637' MD • Paxton 4 o BEL -10-2770'-2900' MD o BEL-13-2964'-3080'MD o BEL -16-3240'-3340' MD o BEL -20-3489'-3540' MD We are asking for expedited review due to the current cold snap and market conditions. As we discussed yesterday on the phone, south central AK is pulling "'340MMscf of gas right now (this is my estimate). Hilcorp in the inlet is delivering -100MMscf from our storage wells and another-110MMscf from base production. CINGSA I heard this morning is delivering 120MMscf. Hilcorp has been producing at this unusually high rate since 10 Dec when Enstar started a "test" of our deliverability. The test has officially ended but it has been more than replaced by the actual cold weather. The current cold snap is expected to continue another 10 days and our customers have already notified us they are going to be needing our current volumes through at least 20 January. Our objective with these pert adds is to protect our storage volumes as much as possible to ensure we keep them pressured up in case the cold continues or returns later in the winter. It is only 10 January and we have a lot of winter left. These perfs in these three wells are expected to bring on immediate and significant base rate which will help protect our storage volumes as well as CINGSA volumes. I appreciate any support you can provide in approving these in an expedited manner. Feel free to call to discuss further. Bo York Hilcorp Alaska LLC Kenai Operations Manager byork@Hilcorp.com 907.777.8345 907.727.9247 cell The information contained in this e-mail message is confidential information intended only for the use of the recipient(s) named above. In addition, this • • Seth Nolan Hilcorp Alaska, LLC GeoTech 3800 Centerpoint Drive RECER Anchorage, AK 99503 Tele: 907 777-8308 Il lesirh:tl.i.ka.LTA. Fax: 907 777-8510 MAR 0 9 2017 E-mail: snolan@hilcorp.com DATE 03/07/17 OG A C t1V'VI�l DATA LOGGED 3 A3a2O1 7 To: Alaska Oil & Gas Conservation Commission M.K.SEWER Makana Bender Natural Resource Technician II 333 W 7th Ave Ste 100 Anchorage, AK 99501 DATA TRANSMITTAL Paxton 3 Elog and Mudlog prints and digital data Prints: Production Profile GR/CCL/PRESS/TEMP/GRADIO/ILS/CAL/SPIN/DEFT CD1: digital Elog Data DLIS Data 2/27/2017 4:35 PM File folder LAS Data 2/27/2017 4:35 PM File folder Log 2/27/2017 4:35 PM File folder SCANNED APR 0 7 2017; Please include current contact information if different from above. Please acknowledge receipt by signing and returning one copy of this transmittal or FAX to 907 777.8337 Received By: Date: Seth Nolan Hilcorp Alaska, LLC 2:gGeoTech 3800 Centerpoint Drive RECEIVEDAnchorage, AK 99503 0245 Tele: 907 777-8308 It�A• �i, u, i;,.i i.t Fax: 907 777-8510 MAR 0 9 2017 E-mail: snolan@hilcorp.com DATE 02/23/17 ^OGVC i DATA LOGGED 3/� 201'j To: Alaska Oil & Gas Conservation Commission Makana Bender Natural Resource Technician II 333 W 7th Ave Ste 100 Anchorage, AK 99501 DATA TRANSMITTAL Paxton 3 Elog and Mudlog prints and digital data Prints: Memory Pressur/Temperature Survey PSP GR-CCL-PRES-TEMP CD1: digital Elog Data DLIS Data 2/2.3/2017 3:21 PM File folder LAS Data 2/23/2017 3:21 PM File folder Log 2/23/2017 3:21 PM File folder Please include current contact information if different from above. Please acknowledge receipt by signing and returning one copy of this transmittal or FAX to 907 777.8337 Received By; o_zikeeet Date: STATE OF ALASKA AI OIL AND GAS CONSERVATION COM SION REPORT OF SUNDRY WELL OPERATIONS 1.Operations Abandon Li Plug Perforations LJ Fracture Stimulate LJ Pull Tubing LI Operations shutdown LJ Performed: Suspend ❑ Perforate ❑ Other Stimulate ❑ Alter Casing ❑ Change Approved Program ❑ Plug for Redrill ❑ srforate New Pool ❑ Repair Well ❑ Re-enter Susp Well ❑ Other: CTU Jetting/N2 CI 2.Operator 4.Well Class Before Work: 5.Permit to Drill Number: prtc) y,2c r/L.A Name: Hilcorp Alaska,LLC Development 0 Exploratory ❑ 209-168 3.Address: 3800 Centerpoint Drive,Suite 1400 Stratigraphic❑ Service ❑ 6.API Number: Anchorage,AK 99503 50-133-20588-00 7.Property Designation(Lease Number): 8.Well Name and Number: Fee Lease Tract 163 Ninilchik Unit Paxton 3 9.Logs(List logs and submit electronic and printed data per 20AAC25.071): 10.Field/Pool(s): N/A Ninilchik Unit /Beluga Undefined Pool 11.Present Well Condition Summary: RECEIVED Total Depth measured 7,414 feet Plugs measured N/A feet JAN2017 true vertical 4,179 feet Junk measured N/A feet Effective Depth measured 7,290 feet Packer measured 2,271 feetO GOO true vertical 4,078 feet true vertical 1,404 feet Casing Length Size MD TVD Burst Collapse Structural Conductor 77' 20" 98' 98' Surface 2,499' 9-5/8" 2,520' 1,441' 5750 psi 3090 psi Intermediate Production 5,184' 4-1/2" 7,418' 4,182' 8430 psi 7500 psi Liner Perforation depth Measured depth See Attached Schematic pp SCANNED M 3,!"' i` 2 2 0 i? True Vertical depth See Attached Schematic Tubing(size,grade,measured and true vertical depth) 4-1/2" L-80/12.6# 2,299'MD 1,408'ND Packers and SSSV(type,measured and true vertical depth) ZXP Liner Top Pkr;N/A 2,271'MD 1,404'ND 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 1682 0 0 104 Subsequent to operation: 0 1700 0 0 103 14.Attachments(required per 20 AAC 25.070,25.071,&25.283) 15.Well Class after work: Daily Report of Well Operations 0 Exploratory❑ Development Q 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: 316-599 Contact Taylor Nasse-777-8354 Email tnasse(p7hilcorp.com Printed Name ChaadddHHelgeson Title Operations Manager Signature �6%/� Phone 907 777 8405 Date ViV 7 Form 10-404 Revised 5/2015 77 Z— 2 7y/ �/� T RBDMS Vl/ J Aar', 2 6 2017 Submit Original Only • • Hilcorp Alaska, LLC Well Operations Summary Well Name Rig API Number Well Permit Number Start Date End Date Paxton 3 CTU 50-133-20588-00 209-168 12/17/16 12/18/16 Daily Operations: 12/17/2016-Saturday Obtain PTW. Hold safety meeting. Spot equipment. Rig up SLB CTU with 1.75" CT. 24 hr BOPE test witness notification sent 12/16/16 @ 13:23. Witness waived by Jim Regg on 12/16/16 @ 13:25. Start BOPE test.Accumulator draw down good. Test all rams and valves to 250/4,500_psi. One pass fail on 2x2 block valve on choke skid. Replaced valve and re- tested low and high. BOPE test complete. Change pack offs on stripper. Install night cap on BOPE. Well head secure. Crews off location. 12/18/2016-Sunday Obtain PTW. Hold safety meeting. Review job procedure and discuss making up memory logging tools. Review and discuss logging steps and procedure. Fire equipment. Pick inj head. Stab 20' lubricator. Make up BHA. 2.125" OD p� dimple connector, 2.125" OD rugged MHA, 2.125" OD ported x over to sucker rod, 1.75" OD PSP PBMS logging tools. `> ,��ts Total BHA length 13.41'. (Pull tested coil connector to 30K). Stab on well. Fluid pack and PT stack to 250/4,500 psi. Open master and swab 26 turns. Initial flowing WHP 108 psi. RIH logging from surface at 30 ft/min. Stop logging pass and park CT at 6950'. Pick up and stop count 5 minutes in between perforation intervals. Log up to 6370'. Cool down N2. RIH logging from 6,370' at 90 FPM to 6,950'. Close in flow line wing valve. Crack surface choke and take returns to open top tank. Online with N2 at 800 scf/min. Increase N2 rate to 1,000 scf/min. Circ pressure stopped climbing at 700 psi. WHP slowly increasing from 108 to 216 psi. Pressures are indicating no column of fluid is being lifted. Fluid at surface in small surges. 1.5-2.0 bbls recovered from well bore. Start POOH. Offline with N2 at 5,700'. Hold WHP at 125 psi. At surface. Sniff return tank with gas detector. All LEL at surface. Swap returns from open top tank to flow line. Close swab valve. Pop off well. Break down memory tools. Good data confirmed. Rig down CTU 12. 1.5-2.0 bbls of produced water returned from well bore. 1,632 gallons of N2 pumped for lift. Install well house. Leave heater trunk in well house to keep flow line thawed. SLB coil equipment parked on edge of pad. Well head secure and post location walk around and inspection complete. Crews off location. _ll • • Ninilchik Field Well #: PAX 03 SCHEMATIC Last Completed: 4/18/2010 tlaeorp Alaska,LLC PTD: 209-168 CASING DETAIL RKB=21' AGL Size Type Wt/Grade/Conn ID Top Btm 20" Conductor 1294/X-56/N/A N/A Surf 98' b 9-5/8" Surface 40#/L-80/BTC 8.835 Surf 2,520' 4-1/2" Production 12.6#/L-80/IBT-M 3.958 2,234' 7,418' ' TUBING DETAIL r 4-1/2" Tie-Back 12.6#/L-80/Hyd 563 3.958 Surf 2,299' v 1 x JEWELRY DETAIL No Depth Length Item r • 1 1,508' Chemical Injection Mandril 2 2,271' 3' Baker 4-1/2"ZXP Liner Top Packer 20' A , 1 3 2,274' 10' Liner Hanger 4 3,261' 5.5' Stage Cement Collar 5 3,264' 57' 4-1/2"Overshot w/4'Swallow PERFORATION DETAIL Zone Top(MD) Btm(MD) Top(TVD) Btm(TVD) Length Size SPF Perf Date 6,432' 6,452' 3,381' 3,397' 20' 3-3/8" 6 @ 60° 4/18/2010 6,534' 6,542' _ 3,464' 3,471' 8' 3-3/8" 6 @ 60° 4/20/2010 a B-4 6,627' 6,632' 3,540' 3,544' 5' 3-3/8" 6 @ 60° 4/20/2010 6,708' 6,715' 3,605' 3,611' 7' 3-3/8" 6 @ 60° 4/18/2010 6,722' 6,730' 3,617' 3,623' 8' 3-3/8" 6 @ 60° 4/18/2010 C s OPEN HOLE/CEMENT DETAIL L RJ J' . , 9-5/8" 12-1/4"hole Cmt w/595 sks(263 bbls)of 12 ppg Type-1 cmt.240sks(106 bbls)to surface 4-1/2" 8-1/2"hole Cmt w/210 sks(78 bbls)of 12.5 ppg Class G Lead&1,075 sks(226 bbls)of 15.8 ppg Class G Tail. 9-5/0• a', v, Liner 315 sks(100 bbls)to surface. Used 305 sks(65 bbls)of 15.8 ppg Class G on 2nd cementing of 4-1/2"casing. 4 INCLINATION DETAIL MISC. INFORMATION KOP @ 170'MD/TVD Marker Joints: It Build:Build: 42/100"from 170'-2,240'MD 4,902&6,403' Hold: 81° from 1,989'-3,650'MD Drop: 1.252/100' to 7,290'MD t Final angle: 35.6° at 7,290'MD @ PBTD AL' Azimuth: 355.3 deg. is :2. It , - B-4 a ---- .a ,i. au2 ': +" TD=7,414'MD PBTD=7,290'IVD MAX HOLE ANGLE=81.9°(a,2,479 Revised By:TDF 10-23-2013 t 'V OF ? • • $�� THE STATE Alaska Oil and Gas g ; ofZLeeV ® Conservation Commission fti i i333 West Seventh Avenue 2 , C GOVERNOR BILL WALKER Anchorage, Alaska 99501-3572 ^h. ..�` Main: 907.279.1433 off'A .gY+ Fax: 907.276.7542 www.aogcc.alaska.gov Chad Helgeson �NED B 2 r �' � Operations Manager � Hilcorp Alaska, LLC 3800 Centerpoint Drive, Suite 1400 Anchorage, AK 99503 Re: Ninilchik Field, Beluga Undefined Pool,NU Paxton 3 Permit to Drill Number: 209-168 Sundry Number: 316-599 Dear Mr. Helgeson: Enclosed is the approved application for sundry approval relating to the above referenced well. Please note the conditions of approval set out in the enclosed form. As provided in AS 31.05.080, within 20 days after written notice of this decision, or such further time as the AOGCC grants for good cause shown,a person affected by it may file with the AOGCC an application for reconsideration. A request for reconsideration is considered timely if it is received by 4:30 PM on the 23rd day following the date of this letter, or the next working day if the 23rd day falls on a holiday or weekend. Sincerely, Cathy Pe-47 oerster Chair ,�,2241 DATED this 60 day of November, 2016. RBDIVIS L NOV 2 8 2016 • • RECEIVED STATE OF ALASKA NOV 2 1 2016 ALASKA OIL AND GAS CONSERVATION COMMISSION APPLICATION FOR SUNDRY APPROVALS 20 AAC 25.280 AOGCC 1.Type of Request: Abandon ❑ Plug Perforations❑ Fracture Stimulate ❑ Repair Well ❑ Operations shutdown❑ Suspend ❑ Perforate ❑ Other Stimulate ❑ Pull Tubing ❑ Change Approved Program❑ Plug for Redrill ❑ Perforate New Pool ❑ Re-enter Susp Well ❑ Alter Casing ❑ Other: CTU Jetting 0 2.Operator Name: Hilcorp Alaska,LLC 4.Current Well Class: 5.Permit to Drill Number: P1/ Exploratory ❑ Development Es 209-168 ' 3.Address: 3800 Centerpoint Drive,Suite 1400 Stratigraphic ❑ Service ❑ 6.API Number: Anchorage,Alaska 99503 50-133-20588-00 • 7.If perforating: 8.Well Name and Number: What Regulation or Conservation Order governs well spacing in this pool? C.O.701 Ninilchik Unit Paxton 3 ❑ Will planned perforations require a spacing exception? Yes ❑ No 0 / 9.Property Designation(Lease Number): 10.Field/Pool(s): Fee Lease Tract 163 . Ninilchik Unit/Beluga Undefined Pool 11. PRESENT WELL CONDITION SUMMARY Total Depth MD(ft): Total Depth ND(ft): Effective Depth MD: Effective Depth ND: MPSP(psi): Plugs(MD): Junk(MD): 7,414' 4,179' . • 7,290' 4,078' ' 1,195 psi N/A N/A Casing Length Size MD ND Burst Collapse Structural Conductor 77' 20" 98' 98' Surface 2,499' 9-5/8" 2,520' 1,441' 5750 psi 3090 psi Intermediate Production 5,184' 4-1/2" 7,418' 4,182' 8430 psi 7500 psi Liner Perforation Depth MD(ft): Perforation Depth ND(ft): Tubing Size: Tubing Grade: Tubing MD(ft): See Attached Schematic ✓ See Attached Schematic 4-1/2" L-80/12.6# 2,299' Packers and SSSV Type: Packers and SSSV MD(ft)and ND(ft): ZXP Liner Top Pkr;N/A 2,271'MD/1,404'ND;N/A 12.Attachments: Proposal Summary ❑j Wellbore schematic U 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: CommencingOperations: December 5,2016 OIL WINJ WDSPL P ❑ ❑ ❑ Suspended ❑ 16.Verbal Approval: Date: GAS ❑., - WAG ❑ GSTOR ❑ SPLUG ❑ Commission Representative: GINJ ❑ Op Shutdown ❑ Abandoned ❑ 17. I hereby certify that the foregoing is true and the procedure approved herein will not be deviated from without prior written approval. Contact Taylor Nasse-777-8354 Email tnasse@hilcorp.com Printed Name �Chaadd Helgeson Title Operations Manager Signature �� /� Phone 907-777-8405 Date I f/Z L J 1(.o COMMISSION USE ONLY !!! Conditions of approval: Notify Commission so that a representative may witness Sundry Number: 1 — C 9. Le cif Plug Integrity ❑ BOP Test LK Mechanical Integrity Test ❑ Location Clearance ❑ Other: ?V `f 50D p s . oche'' ' /f s• ¢- CC-T Post Initial Injection MIT Req'd? Yes ❑ No ❑ Spacing Exception Required? Yes ❑ No / Subsequent Form Required: /0--y(J'1 RBDM3 L 1\L,i L 8 2015 APPROVED BY Approved .(by:// COMMISSIONER THE COMMISSIONSIDate:/[.. 23 _/(t, 1 v ,i I l 111 111 ///111 i (!41/16 Submit Form and Form 10-403 Revised 11/2015 Ofito l o alid for 12 months from the date of approval. 16— Attachments in Duplicate • • Well Prognosis Well: Paxton#3 Hikorp Alaska,LL Date: 11/18/2016 Well Name: Paxton#3 API Number: 50-231-20588-00 Current Status: Producing Well Leg: N/A Estimated Start Date: December 5th, 2016 Rig: Reg.Approval Req'd? Yes Date Reg.Approval Rec'vd: Regulatory Contact: Donna Ambruz 777-8305 Permit to Drill Number: 209-168 First Call Engineer: Taylor Nasse (907) 777-8354 (0) (907) 903-0341 (C) Second Call Engineer: Chad Helgeson (907) 777-8405 (0) (907) 229-4824 (C) AFE Number: Maximum Expected BHP: — 1,558 psi @ 3,623' ND (Assumed 0.43 psi/ft gradient) Max. Potential Surface Pressure: — 1,195 psi (Based on expected BHP and gas gradient to surface (0.10psi/ft) Brief Well Summary Paxton #3 is a gas well that was originally drilled in March 2010 and brought online in the B-4 interval in April 2010. The purpose of this work/sundry is to run a pressure/temperature survey and then jet the well dry with CT. J Notes Regarding Wellbore Condition • Well is currently producing 1,650 MMSCFD at 104 psig and 2-4 bbls of water every few days. Safety Concerns • Discuss 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 methane and, Nitrogen during this job) • Ensure all crews are aware of stop job authority(Review Standard Well Procedure—Nitrogen / Operations) Coiled Tubing Procedure: 1. MIRU Coiled Tubing, PT BOPE to 4,500 psi Hi 250 Low. Notify AOGCC 24 hrs. in advance of BOP test. 2. RIH w/ 1-3/4" coiled tubing and jet nozzle w/memory PT tool BHA to ±6,730' MD. a. Make up/down passes and stops as requested by RE. 3. Bring N2 pump online and displace well fluids with Nitrogen. 4. POOH w/coil. LD 2-1/4"jet nozzle BHA. 5. RD Coiled Tubing. Attachments: 1. Actual Schematic 2. Coil BOPE Schematic 3. CT Flow Diagrams(Forward and Reverse Jetting) 4. Wellhead Diagram 5. Standard Well Procedure—N2 Operations • •H H . 0 Ninilchik Field Well #: PAX 03 SCHEMATIC Last Completed: 4/18/2010 Hilcorp Alaska,LLC. PTD: 209-168 CASING DETAIL RKB=21' AGL Size Type Wt/Grade/Conn ID Top Btm 20" Conductor 1294/X-56/N/A N/A Surf 98' 9-5/8" Surface 404/L-80/BTC 8.835 Surf 2,520' '. 4-1/2" Production 12.64/L-80/IBT-M 3.958 2,234' 7,418' TUBING DETAIL x 4-1/2" Tie-Back 12.64/L-80/Hyd 563 3.958 Surf 2,299' V JEWELRY DETAIL i, No Depth Length Item i 1 1,508' Chemical Injection Mandril .4. 2 2,271' 3' Baker 4-1/2"ZXP Liner Top Packer 20 a 6� 1 3 2,274' 10' Liner Hanger 4 3,261' 5.5' Stage Cement Collar 1 *50 5 3,264' 57' 4-1/2"Overshot w/4'Swallow PERFORATION DETAIL Zone Top(MD) Btm(MD) Top(TVD) Btm(TVD) Length Size SPF Peri Date 6,432' 6,452' 3,381' 3,397' 20' 3-3/8" 6 @ 60° 4/18/2010 ,--r4* 6,534' 6,542' 3,464' 3,471' 8' 3-3/8" 6 @ 60° 4/20/2010 ►' B-4 6,627' 6,632' 3,540' 3,544' 5' 3-3/8" 6 @ 60° 4/20/2010 r 6,708' 6,715' 3,605' 3,611' 7' 3-3/8" 6 @ 60° 4/18/2010 2 6,722' 6,730' 3,617' 3,623' 8' 3-3/8" 6 @ 60° 4/18/2010 3 OPEN HOLE/CEMENT DETAIL 9-5/8" `12-1/4"hole Cmt w/595 sks(263 bbls)of 12 ppg Type-1 cmt.240sks(106 bbls)to surface 4-1/2" 8-1/2"hole Cmt w/210 sks(78 bbls)of 12.5 ppg Class G Lead&1,075 sks(226 bbls)of 15.8 ppg Class G Tail. 9-5/4' L j' 'p Liner 315 sks(100 bbls)to surface. Used 305 sks(65 bbls)of 15.8 ppg Class G on 2nd cementing of 4-1/2"casing. i ' 4 INCLINATION DETAIL MISC. INFORMATION KOP @ 170'MD/TVD Marker Joints: ', 1' 5 Build: 42/100"from 170'-2,240'MD 4,902&6,403' Hold: 81° from 1,989'-3,650'MD ' ' Drop: 1.252/100' to 7,290'MD ',,i Final angle: 35.6° at 7,290'MD @ PBTD Azimuth: 355.3 deg. • • B_4 4_112;,•i.'•, 4', TD=7,414'MD PBTD=7,290'MD MAX HOLE ANGLE=81.9°n.2,479 Revised By:TDF 10-23-2013 • ! ' . II Ninilchik Gas Field Paxton #3 oils—rp ‘14.k.,.ii( 11/18/2016 Paxton#3 Coil Tubing BOP I Lubricator to injection head ) 0 1 rhi iir) 1.75" Tandem Stripper 01111 �- ' 1/16 10 — � 11 '.E Blind/Shea:_ _■Blind/Shear ■ 1 5E01 MIR- 0111 Blind/Shear ill— Blind/Shear MEL ,l,'■ —MUM MMIli • 1111.1111111— 411 ■'■I, Slip .— Slip — — :j i I. i •',I, Pipe Pipe 1114(1 Mud CrOSS - �: 4 1/16 10M X 4 1/16 10M Outlet - al w/2- 2 1/16 10M full opening FMC valves 11111 :' I I WI EN EI ��' 11 0 IIiiio - - m III 111 G : - Manual Manual Manual Manual 2 1/16 10M 2 1/16 10M IV m 2 1/16 10M 2 1/16 10M Crossover spool 1 4 1/16 10M X 4 1/16 5M 7 e • Y O i 0111N02.c ado .§' 0 Et c 0 ...... .../ --N. = . 6 E A a 1 ; 7 1 : y 9 O 111O II ,.... .„-_____--I ..... ......- 1U 1 0 v 0 ��7/ R- F oz T( -;- al1w IU nm -----► ISI '411!111 0 IIl!I_111 III 1111 _ a 11111 2 0 o' a. c 7 ::2i. 0 4 = N 1111 a y A CD y1r h - :. A A (0 i 11/ illi z co LA r 27 'i (I, CD 2 N a /0/ ►� -N m ti , U) U) [rF E z-CO .0 cZ o ( 1 f z [ . A = Z : 0 C s 4 C [8I I • • 1 1 O ig 1 0111 N (7 O O, c-3° � c C 3 T rt s $ s a 9 C(7..s\ty I A • • O 3 F 0 o I11i V E , II 1un1111w1 A i la 'himii!iii 111 m0u m,111-1 til ilii o v CD a 0• G A CD 7 0 -1 CD z N L °•4 ► CD m t r--I- • • La 004 CD P D sxxxv) -o Ag Aa F N uI1 C7 mO e -2 �. [ . A TQ E , 1 F o Z E, f c / (' A m? y f1 1 > =I 5. C) ii' E. a [8a . , • . . 11 Nihik Unit Paxton#3 01/26/2016 Hilrorp t14.1,4,W. Ninilchik Unit Tubing hanger,MB-235,11 X Paxton#3 4.909 MCA lift X4'A IBT susp, 20 X 9 5/8 X4 1/2 w/4"Type H BPV profile,1- Y.continuous control lines 6.5"Extended neck Tree cap Otis,4 1/16 5M FE X 6'/:Otis Quick Union N un^ nai IIIIIIIIIIIIII . qu , O c%,(4�, ,6 Valve,Swab, 4 T OO ' Q Je' \ VG-M,4 1/16 5M FE,HWO, '�I G� �,�,cr A. Ja 3ti. og a . P DD trim .4 `;' J 1, Od 19' �5� m sh iii inth Q ; ! ce40.1`j f i 1111 Valve,upper master, O VG-M,4 1/16 5M FE,HWO, 0 0 DD trim ,U LL Valve,master,FC, 4 1/16 10M FE,HWO,DD o trim 0, /0� VC)) AO 0 ---,iiI firAdapter,Vetco,11 5M stdd X 4 1/16 10M stdd top, prepped f/6.5"extended ' neck hanger Multibowl,Vetco MB-235, =■.lift.+. ��,1g.: 11 3M stdd bottom X `�•A.. 11 5M FE top,w/ 2-2 1/16 5M SSO,1-control :_ line exit - ,1 ,, C = l Br �.�� j / ``■ '_� Both 9 5/8 x tubing ill ' I. , annulus Starting head, Vetco MB-235, . 11 3M X 9 5/8 VG-Loc �� bottom,w/2-2"LPO 1111111111111-1'; I9P.- L [i 20" 5/8" 4.5" • • .w STANDARD WELL PROCEDURE ['Henry tia ka. 1.ii 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/CO2/02 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 v1 Page 1 of 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. C)og - L E)..z Well History File Identifier Organizing(done) ❑ Two-sided I 11111 ❑ Rescan Needed III 1111111 111111 RE AN DIGITAL DATA OVERSIZED (Scannable) Color Items: ❑ Diskettes, No. ❑ Maps: 9/Greyscale Items: ❑ Other, No/Type: rXOther Items Scannable by V IT a Large Scanner aRrnA�d� ❑ Poor Quality Originals: OVERSIZED (Non-Scannable) Loos ❑ Other: ❑ Logs of various kinds: NOTES: ❑ Other:: BY: Maria Date: Valli A /s/ r .1 Project Proofing III 111111111111111 BY: Maria) Date: I 4L /s/ if p , Scanning Preparation x 30 = 'SV + oa/ = TOTAL PAGES / 77 (Count does not include cover sheet BY: Date: t ` /s/ ryp r' -■ Production Scanning 111111 IN III I Stage 1 Page Count from Scanned File: I R(Count does include cover heet) 7 Page Count Matches Number in Scann'ng Preparation: YES NO BY: N Date: /s/ 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. 111111111111 111 III ReScanned 111111111 IIII II III BY: Maria Date: /s/ Comments about this file: Quality Checked IIIIIIIIIIIIIIIII 10/6/2005 Well History File Cover Page.doc o o C CO o •' O — O — N U C N C N — 4— O) N U Z Z J O O co Ili CO C u a�0 3 J o ,E •p m m m m U y N y N U 0 U 0 0 d N Z ;I O� am a am in cc c n° > a a ct a0 a0 M U > cI_ 60C �0CL O •° O EO U a z U Z U Od Od P d yw a.) >. 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II �? 0 0)V O O O O O O O O O O = O O I 0 0 0 0 0 0 0 0 0 0 0 0a O 0 N c z G O ■ Na' N N 0 U E Z J W 'i N N N N N N R7 U) N N U) U) N CO 1 CO 0 J r' I 0 < z I 0 a w 0. 5 N W N I- J M W M v U Y N m N � _ a 0 Q z ° ' a I— z a' o co a ! ZI U a a w w w Z o a' a' > > > > o 0 d U p N w N N co J 0 a7 Cu N N Cl) Cl) CD a) a)Z co 0 c c a' a' a' a > = u' it C C C C W Cl) i a) i O O O O O O O O O O C N z E n n > > > > N c(Cl o a v v v v E •E I Z a) 0 a) _ _ _ _ _ _ -o c v c v c v c a) o U co 0 U w o 03 0 ' Z d O l ;J (° F- O '° E y m rn `c;-.) Q z C 0 a., W I N Q 0 y. H a.. fa a+ 0 j Q O E c' y E 0 O O v c rnm WR' Z W m o 1 I , ` .J .J ,N \ O € 1 a ci) ... --- cp CI) 0) 0) 0) 0) 0) 0)'):7) 0) CP 01 Ca a) a) J O. I La < H 3 J O FT' �ce W J J J J J J J J J J J J J °C co m o oo 0 0 co c c 0o m o in E E N O O o 0 I, a-.• — N N N O.N co ! l'i Z a7 r N 2 2 2 2 a I F. Io 0 u) I o 0 Q 1 N N I N N 1 Lo a� i c I y• C C 4) w D_ O_ E r+ u5 0 0 E 0 LL. U c E o o Zr)15 U I a O I I 87 u) } W z N z N o 0 Lo LL. 0 m N N W O o Z i �' d CC g Q O a 11 y O c y 7 TA O J 0 �° = m I ^ u) O O O >` E rr N c I U U y m o Ii O I O a Zi• E N L ✓ Z o � J M Q z I a a o 0 5 m G NI CO Z a C M he C • d � _ 0 U) ! Q Z E ° ~ H z a I 0 m ! Q I m U• c c 0 0 z Ce Cr I ' U o _ — a) a) • � O) O7 _ c al ra O Z o p I co Q iZ m CD I re N I CA O } m °' z 0 z Q 0 Z N U C c I-- \ O 0 O y a I; a) ' 10 pp 1 U Q U a T'� I E 'p, cu O O a1 L C a) O O l a 2 J -J 3 Q 0 <CL I 0 I 0 siffzE ofiF 6 SEAN PARNELL,GOVERNOR ALASKA OIL AND GAS 333 W.7th AVENUE,SUITE 100 CONSERVATION COMDIISSION ANCHORAGE,ALASKA 99501-3539 PHONE (907)279-1433 FAX (907)276-7542 Kevin J. Skiba Regulatory Compliance Technician C Marathon Alaska Production, LLC ao P.O. Box 1949 Kenai, AK 99611-1949 Re: Ninilchik Field, Beluga Undefined Pool, Paxton #3 Sundry Number: 311-127 Dear Mr. Skiba: Enclosed is the approved Application for Sundry Approval relating to the above referenced well. Please note the conditions of approval set out in the enclosed form. 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 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. S. . el WAY�' .o . Norma o missioner DATED this jf day of April, 2011. Encl. Mara..__.i Alaska Production LLC Alaska Asset Team AA Marathon P.O. Box 1949 Ml1RATHON Alaska Production LLC Kenai,AK 99611 Telephone 907/283-1371 Fax 907/283-1350 April 14, 2011 Mr. Winton Aubert RECEIVED' Alaska Oil & Gas Conservation Commission �+ 333 W 7th Ave APR 15 11 Anchorage, Alaska 99501 Al ska &bas Cons.20 C trunission nrrr:rage Reference: 10-403 Applications for Sundry Approvals Field: Ninilchik Unit Well: Paxton #3 Dear Mr. Aubert: Submitted for your approval is the10-403 Applications for Sundry Approvals for the PAX-3 well. Marathon proposes to install a 1.75" coil tubing velocity string in PAX-3 to help prolong well life by reducing it's unload rate. This will also give the Operations Group increased flexibility to respond to future seasonal production fluctuations. Please contact me at (907) 283-1371 if you have any questions or need additional information. Sincerely, kt-6--s/ Kevin J. Skiba Regulatory Compliance Representative Enclosures: 10-403 Applications for Sundry Approvals cc: AOGCC Current Well Schematic Houston Well File Proposed Well Schematic Kenai Well File Operations Program KJS • STATE OF ALASKA ALASKA AND GAS CONSERVATION COMMISSION ,� '4I c, �� ,� APPLICATION FOR SUNDRY APPROVALS , r`.t�k 20 AAC 25.280 Alaska 04&6as Cans.�$10Ai 1.Type of Request: Abandon ❑ Plug for Redrill❑ Perforate New Pool ❑ Repair well ❑ Chal`dthe program ❑ Suspend ❑ Plug Perforations ❑ Perforate ❑ Pull Tubing ❑ Specify:Time Extension❑ Operational shutdown ❑ Re-enter Susp.Well ❑ Stimulate ❑ Alter casing ❑ Other: Install velocity string - El 2.Operator Name: 4.Current Well Class: 5.Permit to Drill Number: Marathon Alaska Production LLC Development o_ Exploratory ❑ 209-168' 3.Address: PO Box 1949 Stratigraphic ❑ Service ❑ 6.API Number: Kenai Alaska, 99611-1949 50-133-20588-00-00- 7.If perforating,closest approach in pool(s)opened by this operation to nearest 8.Well Name and Number: property line where ownership or landownership changes: Spacing Exception Required? Yes ❑ No 0 Paxton#3 9.Property Designation(Lease Number): 10.Field/Pool(s): Fee Lease Tract 163 • Ninichik Unit/Beluga Undefined Pool- 11. PRESENT WELL CONDITION SUMMARY Total Depth MD(ft): Total Depth TVD(ft): Effective Depth MD(ft): Effective Depth TVD(ft): Plugs(measured): Junk(measured): 7,414'- 4,179'- 7,290'- 4,078'- Casing Length Size MD / TVD Burst Collapse Structural Conductor 77' 20" 98' 98' Surface 2,499' 9-5/8" 2,520' 1,441' 5,750 psi 3,090 psi Intermediate Production 5,184' 4-1/2" 7,418' 4,182' 8,430 psi 7,500 psi Liner Perforation Depth MD(ft): Perforation Depth TVD(ft): Tubing Size: Tubing Grade: Tubing MD(ft): r 6,432'-6,730' 3,381'-3,623' Tie-back 4-1/2" L-80 2,299' Packers and SSSV Type: SSSV: NA Packers and SSSV MD(ft)and TVD(ft): NA NA / Packers: ZXP Liner Top Packer 2,271' 1,404' 12.Attachments: Description Summary of Proposal ❑ 13.Well Class after proposed work: Detailed Operations Program IO BOP Sketch ❑ Exploratory ❑ Development 0- Service ❑ 14.Estimated Date for 15.Well Status after proposed work: May 16 011 Commencing Operations: Oil ❑ Gas 0- WDSPL ❑ Plugged ❑ 16.Verbal Approval: Date: WINJ ❑ GINJ ❑ WAG ❑ Abandoned ❑ Commission Representative: GSTOR ❑ SPLUG ❑ 17.I hereby certify that the foregoing is true and correct to the best of my knowledge. Contact Kevin Skiba (907)283-1371 Printed Name Kevin J.Skiba Title Regulatory Compliance Technician Signature Date (907)283-1371 April 14,2011 .1<..eivid:.‘„ d. ,..5` COMMISSION USE ONLY Conditions of approval: Notify Commission so that a representative may witness Sundry Number: 3 I 1 — l a-1 Plug Integrity ❑ BOP Test ❑ Mechanical Integrity Test ❑ Location Clearance ❑ Other: Subsequent Form Required: id — 40 APPROVED BY Approved by: % MISSIONER THE COMMISSION Date: ilit.f fa.'# RBDMS APR I 20 1 ..f► ORIGINAL Form 10-403 Revised 12/2009 Submit in Duplicate M MARATHON MARATHON ALASKA PRODUCTION LLC ALASKA ASSET TEAM Pax #3 Ninilchik Unit Paxton Pad Coiled Tubing Velocity String Hang-off Procedure WBS #WO.11.24029.CAP.001 APPROVALS: Mike Sulley (3/22/2011) Program Writer Mike Ellis Lyndon Ibele Latest Version Date: 3/22/11 Well Status: The well is producing 2.93 MMSCFD at 550 psi and no water Notes: • This procedure covers work to install a 1.75" OD coil tubing velocity string to alleviate liquid loading. • Contact Vetco prior to MIRU to install Velocity String hanger and verify maximum hanger head ID & mandrel OD measurements. Reorient tree to flow line as required by construction dept. • Schedule Construction group to fabricate new pipe spools and E & I installation. • BJ CoilTech supervisor will drift all BHA connections prior to rig up to insure drift ID of individual connections. • Pollard Wireline will install 1.25" PXN equalizing blanking plug into coil tubing profile nipple and pressure test to 3000 psi in both directions prior to BJ CT arrival on location. Last PT was 5/04/2010. PT tools cleared to 7148'. Coiled Tubing Velocity String Hang-off Procedure 3/22/2011 - 1 - Objectives: Install a 1.75" CT V-string to prolong well life by reducing unload rate and will give operations greater production flexibility in the future. Resources: Coiled tubing set up with pump and N2 pump Approx 7,200 of 1.75" CT Arctic Iron and choke skid, gas buster, tank set up Manlift/ 2 Light plants Vetco Crew for wellhead modifications/hang-off assembly install. Procedure: Disconnect power to welihouse (call electrician). MI man lift. MI crane. Remove well house. Paperwork: Sundry Notice, WBD, Work Permit, Well Ops transfer sheet. A. Install Coiled Tubing Head Talk with construction and make arrangements to complete instrumentation, electrical, logic, and FCO to minimize shut-in time. Shut in well. Vetco to set 4" Cameron Type-H BPV. Close bottom master. Bleed off pressure and check for flow. Remove top master and install new Vetco 4-1/16 5M CT Head with 2-1/16" 5M side outlet. Install 2-1/16" gate valve and SSV to side outlet on coil tubing head. Orient as necessary. Reinstall and test (with diesel) top master and swab valve. Make final measurements to install flow-line to CT Head outlet. Pull BPV. B. Flow-line modifications for coil tubing string Hand over well to construction to modify flow-line and install V-string flow-line and choke. Velocity string flow-line does not need dedicated gas metering (IPR indicates no appreciable rate gain for flowing up annulus). After complete, return well to production. C. MIRU MOC flowback equipment Coiled Tubing Velocity String Hang-off Procedure 3/22/2011 -2- This includes open-top flowback tank, choke skid, gas buster, and flowback iron. MIRU 80bbl vac truck with 6% KCI. Lay liner and berm area around tank. D. Hang Off 1.75" CT 1. MIRU BJ coiled tubing unit. Verify 24 hour notification has been made to AOGCC for BOP test. Rig up fluid and N2 pumps. RU pumping iron (BJ) and Arctic flow back iron (MOC). RU equalizing hose from BOP to top of lubricator. 2. Nipple up BJ CT wellhead assembly (WHA). Current WHA is 4-1/16" 5M swab/cap. WHA to include 4-1/16" - 5M X 4-1/16" - 10M DSA, 4-1/16" - 10M X 5' Flanged Riser, 4-1/16" — 10M flow cross and 4-1/16" - 10M Dual- Combi BOP (dressed for 1-3/4" CT). Function test BOP. Stab 1-3/4" CT into injector. Have BJ prep coil end off location prior to RU. Nipple up injector to WHA. 3. Perform complete BOP test and complete AOGCC BOP Test Report (Correct form dated 01/25/2010). Pressure test pump iron (200 low/4500 high psi). Pressure test WHA and flow back iron to choke manifold (200/4500 psi). Pressure test BOP rams (200/4500 psi). Note BOP test witness or waiver in WeIlView, including details. 4. Pig CT. Run end of CT with pig catcher onto Well head. Open valves on flow cross to flow back tank. Pump 5 bbls water, cleaning pig, and coil displacement +10% behind pig. 5. MU CT BHA. Nipple injector off WH. PU 10' of 4-1/16" CQ lubricator. MU velocity string BHA to end of CT. Install dimple on connector. Pull test to 18K. Pressure test coil to 3200 psi. Blow down coil with approximately 10,000 scf of N2 to flow back tank. Continue installing BHA. BHA to include: a. 2.50" OD X 1.50" ID CT grapple connector, b. 2.50" OD X 1.50" ID X 10' long box x box straight bar, c. 1.91" OD X 1.25" PXN (1.135" no-go) pin x pin, d. 2.50" OD x 2.50" OD (1.50" ID top box x 2.0" ID bottom) wireline re- entry guide with 2.0 OD" x 2.50" OD 0-ring sealed aluminum pump- off plug. Strap and record velocity string BHA dimensions and lengths. Include record in WeIlView and on updated WBD. Coiled Tubing Velocity String Hang-off Procedure 3/22/2011 -3- 6. Nipple up injector to WHA. Pressure test WHA using CT kill line (200/1500 psi). Bleed WHP to flow back tank. Prior to next Step, ensure that flowback line from WHA through choke manifold to gas buster is ready and available to keep TP at or below 1500 psi while RIH to eliminate possible CT collapse. This would serve as a backup if flow through the production flow line was unexpectedly curtailed or ceased. 7. RIH with coil tubing velocity string and BHA with well flowing to sales up annulus (running v-strings into shut-in wells has been very unsuccessful). 8. Cut coil tubing. POH to span WHA for final landing depth ,720% Set CT in BOP tubing/slip rams. Lock tubing/slip rams. Slack off injector chain traction and roll chains to verify slips are set. Release WHP above tubing rams to the flowback tank. Nipple injector off of WHA. Walk injector up CT. Install C plate above BOP and polish rod clamp on CT. Cut weep hole. Cut CT above BOP high enough to allow Vetco to install CT connector and hanger mandrel assembly. 9. MU Vetco Coil Tubing Hanger and Weatherford Hydraulic Release GS Running Tool. (Only hand filing OD of CT above BOP. HOT WORK PERMIT REQUIRED for air grinder/carbide burr). GS running tool should be plugged to release on pressure, not rate. Swing Injector and lubricator away from WH. Vetco to connect VGCT Coil Tubing Hanger(4" Nom C/W 3" Weatherford Fishing neck with 2-3/8" 8rd Box and 2" BPV) to hanging coil tubing with coil grapple. While Vetco is making up CT hanger, BJ CoilTech to connect Weatherford GS tool string assembly to coil on reel trailer. Dimple-on a 1-3/4" CT connector. Pull test CT connector(25,000 lbs.) using 1.125" 10SA box X 1-1/2" MT pin crossover and 1-1/2" MT box pull plate. Tool string will consist of 1-3/4" slimline dimple-on, 1-3/4" DF check valve, 1.125' 10SA box X 1-1/2" MT pin X- over and a plugged 3" GS spear. PU or lay down 4" lubricator as needed to cover GS tool string and Vetco CT hanger. 10.Latch GS spear to Vetco mandrel after PU injector. Remove polish rod clamp and C-plate from top of BOP. Accurately measure from hanger assembly to CT lock down screws. Walk injector down CT and nipple injector/lubricator to top of BOP. Pull test CT mandrel connection/GS spear assembly to CT string weight plus 5,000 lbs. Slack off weight to CT string weight. Measure and mark the exact distance that the CT has to move down to align the hanger. Make all measurements on the gooseneck with all rollers locked. Equalize WHP across tubing rams. Unlock tubing/slip rams. Open BOP tubing/slip rams. Coiled Tubing Velocity String Hang-off Procedure 3/22/2011 -4- 11.RIH and land Vetco CT hanger per Vetco procedures. Stop hanger 1' high and run lower lockdown screws to their landing position. Lower hanger onto the lockdown screws and then lock upper screws. Verify string and hanger are landed and secured per Vetco procedures. Slack off string weight to neutral. Tighten lock screws. Pressure test hanger between slab seals to 5000 psig for 10 min. with hand pump pressure test unit (Vetco Supplied). 12.Release GS Running Tool. Start pumping 6% KCL water or N2 to pressure up CT to release GGspear. Set down weight and then pick GS off of hanger 13.RD and release CT. RD equipment, clean location, and turn in work permit. E. Pressure Up and Blow Pump-Off Plug Shut in sales and allow WHP pressure to build up to 1100 psi. Jumper gas from annulus to coil tubing until CT WHP is 1100 psi. While leaving CT shut in, open annulus to sales. The differential pressure between the coil tubing and annulus should blow off the pump out plug. If the situation dictates, pump off plug with N2. F. Flow Test Well to Sales No more than a 60% drawdown with methane gas in wellbore is permitted for the lowest open interval. Obtain stabilized flow within the 60% drawdown limit. The unloading rate up 4-1/2" casing and 1.75" coil tubing in a vertical well is 4.0 MMCFPD and 638 MCFPD, respectively, at 800 psig FCP. Flow well to sales observing recommended drawdown rates. G. Complete Well Ops Transfer Sheet and distribute. Considerations, Instructions, and Planning: A pre-meeting with the construction group is required. Talk with construction and make arrangements to complete instrumentation, electrical, logic, and FCO to Coiled Tubing Velocity String Hang-off Procedure 3/22/2011 -5- • minimize shut-in time. V-string candidates don't normally like shut-ins, and having a "rush"job adds considerably to the cost of the tree work. A hot work permit is necessary for grinding the top of the CT above the BOP to allow installation of the dimple on connector when the v-string is pulled. This permit requires special approval and must be obtained before the job. When running the v-string, only allow hand filing of the outside of the CT above the tree to avoid the necessity of the hot work permit. Hand filing the outside is sufficient to install the external connector. Pigging the coil is a good practice generally and required if we are running used pipe from BJ. The critical point in the job is spacing out to hang off the CT. If the space out and procedure is not correct the CT or hanger can easily be damaged costing significant extra time and money. Organize a job meeting before the injector is walked back down to the BOP to ensure everything is measured and correct. There are 2 kinds of CT hangers in the field. The new style hanger has seals that are energized by the lockdown screws. The old style hanger has o-rings and is a larger OD. If an old style hanger is pulled from the well it should be discarded and replaced with the new style with slab seals. A third hanger is in final design as of Sept-09. This design has shear screws to stop from prematurely energizing the seal while running through the lubricator or tree. It is necessary to use straight bars to align the hanger and GS. Use a 6' straight bar between the CT connector and the hanger and above the GS spear use 2 large centralizers separated with a 2' — 3' straight bar. If running a 4" hanger in 4-1/16" lubricator(or 3" in 3-1/8") it is necessary to install a pump in sub at the top of the lubricator and connect a hose from the top pump- in sub to the BOP to equalize around the hanger. Differential across the hanger can energize the seals and then they will be damaged running the hanger through the lubricator. Vetco is redesigning the 4" hanger to severely reduce this possibility (in final design stage in Sept09). It is safer to latch the hanger with the GS after the lubricator is reconnected to avoid walking the injector down the pipe. Either method works but with the straight bar below the hanger and the double centralizers above the GS it is easy to latch inside the lubricator. When running the 3" hanger latching the GS inside the lubricator is not an option unless you have 3-1/8" lubricator and an equalizing system. Coiled Tubing Velocity String Hang-off Procedure 3/22/2011 -6- PAX-3 1%/k Permit#: 209-168 Paxton Pad API#: 50-133-20588-00-00 713' FNL, 2,929' FEL Prop.Des: Sec. 13, T1S, R14W, S.M. MARATHON KB elevation: 171' (21'AGL) Latitude: 60°05'44.07"N Longitude: 151°36'39.03"W Conductor Spud Date: 2:00hrs 3/1/10 20" x-ss 129 ppf TD Date: 3/18/10 Top Bottom Rig Released: 6:00hrs 3/29/10 MD o' ss' TVD 0' 98' PA#: ' Surface Casing 9-5/8" L-80 40 ppf BTC Top Bottom MD 0' 2,520' TVD 0' 1,441" Chemical Injection Mandrid 12-1/4"hole Cmt wl 595 sks(263 bbls)of @ 1,508'MD 12 ppg Type-1 cmt.240sks(106 bbls)to surface _� Tie-Back Tubing 4-1/2"ZXP Liner Top Packer -. 4-1/2" L-80 12.6 ppf IBT-M (2,271'-2,274'MD) jlow_11� Tom Bottom MD 0' 2,299' TVD 0' 1,408' Liner Hanger f 1 Baker 9-5/8'by 4-1/2" Production Liner (2,274'-2,284'MD) 4-1/2" L-80 12.6 ppf Hydril 563 Tog Bottom MD 2,234' 7,418' Stage Cementer Collar TVD 1,399' 4,182' @ 3,261'MD 8-1/2"hole Cmt w/210 sks(78 bbls)of ll(X] . 12.5 ppg Class G Lead&1,075 sks(226 bbls)of 15.8 ppg Class G Tail. 315 sks(100 bbls)to surface. Used 305 sks(65 bbls)of 15.8 ppg Class G on 2nd 4-1/2"Overshot cementing of 4-1/2"casing. @ 3,264'MD 5-1/2'overall length w/4'swallow KOP @ 170'MD/TVD • Build 4°1100"from 170'-2,240'MD Hold 81° from 2,240'-3,650'MD Drop 1.25°/100' to 7,290'MD Final angle 35.6° at 7,290'MD @ PBTD Azimuth: 355.3 deg. Beluga Perts: MD TVD Ft Gun Type Date B4 6,432'-6,452' 3,381'-3,397' 10 60°,6SPF 4/18110 Marker Joints(MD): B4 6,534'-6,542' 3,464'-3,471' 8 60°,6SPF 4/20/10 @ 4,902' B4 6,627'-6,632' 3,540'-3,544' 5 60°,6SPF 4/20/10 @ 6,403' _==,..,... B4 6,708'-6,715' 3,605'-3,611' 7 60°,6SPF 4/18/10 B4 6,722'-6,730' 3,617-3,623' 8 60°,6SPF 4/18/10 Al IT DA Q A ILL- TD PBTD 7,414'MD 7,218'MD 4,179'TVD 4,020'ND Well Name&Number: Paxton#3 Lease: Ninilchik Unit Municipality: Kenai Peninsula Borough State: Alaska Country: USA Perforations(MD): 6,432'-6,730' Perf(TVD): 3,38V-3,623' Angle©KOP&Depth: 4°/100' @ 170 ft Angle©Perfs: 35.5° Date Completed: 4/18/2010 Ground Level: 150'(AMSL) RKB: 21'(AGL) Revised by: Kevin Skiba Revision Date: 5/12/2010 PROPOSED PAX-3 Permit#: 209-168 Paxton Pad API#: 50-133-20588-00-00 713' FNL, 2,929' FEL Prop.Des: Sec. 13, T1S, R14W, S.M. KB elevation: 171' (21'AGL) MARATNOM Latitude: 60°05'44.07"N - - Longitude: 151°36'39.03"W Spud Date: 2:00hrs 3/1/10 zo^ X-56 129 ppf Conductor TD Date: 3/18/10 Top Bottom Rig Released: 6:00hrs 3/29/10 MD o' 9s PA#: TVD 0' 98' Surface Casing 9-5/8" L-80 40 ppf BTC Top Bottom MD 0' 2,520' TVD 0' 1,441" Chemical Injection Mandrid 12-1/4"hole Cmt w/595 sks(263 bbls)of @ 1,508'MD 12 ppg Type-1 cmt.240sks(106 bbls)to surface 4-112"ZXP Liner Top Packer Tie-Back Tubing p v 4-1/2" L-80 12.6 ppf IBT-M (2,271'-2,274'MD) I I Tog Bottom MD 0' 2,299' i _ TVD 0' 1,408' Liner Hanger T - Baker 9-5/8'by 4-1/2" Production Liner (2,274'-2,284'MD) , 4-1/2" L-80 12.6 ppf Hydril 563 Tom Bottom MD 2,234' 7,418' Stage Cementer Collar TVD 1,399' 4,182' ©3,261'MD 8-1/2"hole Cmt w/210 sks(78 bbls)of 12.5 ppg Class G Lead&1,075 sks(226 bbls)of 15.8 ppg Class G Tail. 315 sks(100 bbls)to surface. Used 305 sks(65 bbls)of 15.8 ppg Class G on 2nd 4-1/2"Overshot cementing of 4-1/2"casing. ©3,264'MD 5-1/2'overall length w/4'swallow Velocity String (installed on) KOP @ 170'MD/TVD 1-314"OD Top Bottom) Build 4°/100"from 170'-2,240'MD p MD 21' 6720'% Hold 81° from 2,240'-3,650'MD ND 21' 3616' Drop 1.25°/100' to 7,290'MD BHA includes:2.50"OD X 1.50"ID CT grapple Final angle 35.6° at 7,290'MD @ PBTD 1 connector,2.50"OD X 1.50"ID X 10'long box by straight box 1.91"OD X 1.25"PXN I 9 Azimuth: 355.3 deg. no-go)profile nipple,and 3.50"OD x 2.50" o)P PP 5 OD (1.50"ID top box x 2.0"ID bottom)wireline ■ Marker Joints(MD): @ 4,902' Beluga Perfs: @ 6,403' 1 e' MD ND Ft Gun Type Date I i l v Q B4 6,432'-6,452' 3,381'-3,397' 10 60°,6SPF 4/18/10 _ B4 6,534'-6,542' 3,464'-3,471' 8 60°,6SPF 4/20/10 111 IEE B4 6,627'-6,632' 3,540'-3,544' 5 60°,6SPF 4/20/10 B4 6,708'-6,715' 3,605'-3,611' 7 60°,6SPF 4/18/10 -JL- B4 6,722'-6,730' 3,617'-3,623' 8 60°,6SPF 4/18/10 TD PBTD 7,414'MD 7,218'MD 4,179'ND 4,020'ND Well Name&Number: Paxton#3 Lease: Ninilchik Unit Municipality: Kenai Peninsula Borough State: Alaska Country: USA Perforations(MD): 6,432'-6,730' Perf(TVD): 3,381'-3,623' Angle @ KOP&Depth: 4°/100' @ 170 ft Angle @ Perfs: 35.5° Date Completed: 4/18/2010 Ground Level: 150'(AMSL) RKB: 21'(AGL) Revised by: Mike Sulley Revision Date: 4/4/2011 Marathon Alaska Production LLC Alaska Asset Team M Marathon P.O. Box 1949 MARMON Alaska Production LLC Kenai,AK 99611 ® Telephone 907/283-1371 Fax 907/283-1350 May 21, 2010 Mr. Winton Aubert Alaska Oil & Gas Conservation Commission 333 W 7th Ave Anchorage, Alaska 99501 Reference: 10-407 Well Completion Report and Log Field: Ninilchik Unit Well: Paxton # 3 Dear Mr. Aubert: Submitted for your records is the Well Completion Report and Log for Pax-3 well. Pax-3 is a newly drilled Beluga formation well in the Ninilchik Unit. The well was spud on March 1, 2010 and drilled to a total depth of 7,414' MD. Pax-3 was completed into the Beluga formation with perforations spanning from 6,432' to.31-6231MD. 3o W4Ar Please contact me at (907) 283-1371 if you have any questions or require additional information. Sincerely, #A1 Kevin J. Skiba Regulatory Compliance Representative Enclosures: 10-407 Well Completion Report & Lo g cc: Houston Well File Reference Attachment List Kenai Well File KJS STATE OF ALASKA RECEI V EDr,;6o tu01' ALASKA viL AND GAS CONSERVATION COMMISSioN WELL COMPLETION OR RECOMPLETION REPORT AI� 5 L6641u 1a.Well Status: Oil ❑ Gas 0 SPLUG ❑ Other ❑ Abandoned ❑ Suspended 1b.Well ❑ 1 Oil&fl8t con:.commission 20AAC25.105 20AAC25.110 Development 0 .ratory GINJ WIND WAG WDSPL❑ No.of Completions: 1 , �� g ❑ ❑ ❑ p �� Jr �1 � Service ❑ Stratigra. is Test❑ 2.Operator Name: 5.Date Comp.,SuspQor 12.Permit to Drill#: 209-168 Marathon Alaska Production LLC Aband.: 4 2010 Sundry#: NA 3.Address: PO Box 1949 6.Date Spudded: 13.API Number: Kenai Alaska, 99611-1949 March 1,2010 50-133-20588-00-SO1 4a.Location of Well(Governmental Section): 7.Date TD Reached: 14.Well Name and Number: Surface: 713'FNL, 2,929'FEL, Sec.13, T1S, R14W, S.M. March 18,2010 Paxton#3 Top of Productive Horizon: 8.KB(ft above MSL): 171' 15.Field/Pool(s): 1,066'FNL, 3,493'FEL, Sec.12, T1S, R14W, S.M. GL(ft above MSL): 150' Total Depth: 9.Plug Back Depth(MD+TVD): Ninichik Unit/Beluga Undefined Pool 522'FNL, 3,629'FEL, Sec.12, T1S, R14W, S.M. 7,290' 4,078' 4b. Location of Well(State Base Plane Coordinates,NAD 27): 10.Total Depth(MD+TVD): 16.Property Designation: Surface: x- 206,399.72 y- 2,230,648.16 Zone- 4 7,414' 4,179' TPI: x- 205,973.71 y- 2,235,491.98 Zone- 4 11.SSSV Depth(MD+TVD): 17.Land Use Permit: Total Depth: x- 205,927.54 y- 2,236,057.40 Zone- 4 NA NA NA 18.Directional Survey: Yes 0 No ❑ 19.Water Depth,if Offshore: 20.Thickness of Permafrost MD/TVD: (Submit electronic and printed information per 20 AAC 25.050) NA (ft MSL) NA 21.Logs Obtained(List all logs here and submit electronic and printed information per 20 AAC 25.071): 22.Re-drill/Lateral Top Window MD/TVD: See Atachment List NA 23. CASING, LINER AND CEMENTING RECORD WT. PER SETTING DEPTH MD SETTING DEPTH TVD AMOUNT CASING FT GRADE TOP BOTTOM TOP BOTTOM HOLE SIZE CEMENTING RECORD PULLED 20" 129 X-56 0' 98' 0' 98' Driven NA .NA 9-5/8" 40 L-80 0' 2,520' 0' 1,441' 12-1/4" 595 sks / (24G sks 4-1/2" 12.6 L-80 2,234' 7,418' 1,399' 4,182' 8-1/2" 1,590 sks /11sks 24.Open to production or injection? Yes 0 No If Yes,list each 25. TUBING RECORD interval open(MD+TVD of Top&Bottom;Perforation Size and Number): SIZE DEPTH SET(MD) PACKER SET(MD/TVD) MD / TVD Perf Size SPF 4-1/2" 2,299' 2,271' / 1,404' 6,432'-6,452' 3,381'-3,397' 0.37" 6 6,534'-6,542' 3,464'-3,471' 0.37" 6 26. ACID, FRACTURE,CEMENT SQUEEZE, ETC. 6,627'-6,632' 3,540'-3,544' 0.37" 6 DEPTH INTERVAL(MD) AMOUNT AND KIND OF MATERIAL USED 6,708'-6,715' 3,605'-3,611' 0.37" 6 6,722'-6,730' 3,617'-3,623' 0.37" 6 27. PRODUCTION TEST Date First Production: 4/18/2010 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: 5/1/2010 24 Test Period —.. 0 3,793 0.3 64/64 100%gas Flow Tubing Casing Press: Calculated Oil-Bbl: Gas-MCF: Water-Bbl: Oil Gravity-API(corr): Press. 720 60 24-Hour Rate 0 3,793 0.3 NA 28. CORE DATA Conventional Core(s)Acquired? Yes ❑ No 0 Sidewall Cores Acquired? Yes ❑ No 0 If Yes to either question,list formations and intervals cored(MD+TVD of top and bottom of each),and summarize lithology and presence of oil,gas or water (submit separate sheets with this form,if needed).Submit detailed descriptions,core chips,photographs and laboratory analytical results per 20 AA•"24 /,- t 1 A . 1 4r t _r j' ye RBDMS MAY 2 7 201 Form 10-407 Revised 7/2009 CONTINUED ON REVERSE Submit original only 29. GEOLOGIC MARKERS (List all formations and marker: Antered): 30. FORMATIC ;TS NAME MD TVD Well tested? Yes El No If yes,ii,L intervals and formations tested, briefly summarizing test results.Attach separate sheets to this form,if needed, Permafrost-Top and submit detailed test information per 20 AAC 25.071. Permafrost-Base Beluga B1 2,753' 1,481' Repeat formation test information attached B2 4,872' 2,158' B3 5,873' 2,854' B4 6,522' 3,454' it Formation at total depth: 7,414' 4,179' 31. List of Attachments: See Atachment List 32. I hereby certify that the foregoing is true and correct to the best of my knowledge. Contact: Kevin Skiba (907)283-1371 Printed Name: Kevin J.Skiba Title: Regulatory Compliance Representative Signature: �jfht.s .,5 Phone: (907)283-1371 Date: May21,2010 INSTRUCTIONS General: This form is designed for submitting a complete and correct well completion report and log on all types of lands and leases in Alaska. Submit a well schematic diagram with each 10-407 well completion report and 10-404 well sundry report when the downhole Item 1 b: 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 prod Item 4b: TPI(Top of Producing Interval). Item 8: The Kelly Bushing and Ground Level elevations in feet above mean sea level. Use same as reference for depth measurements given in other spaces on this form and in any attachments. Item 13: The API number reported to AOGCC must be 14 digits(ex:50-029-20123-00-00). Item 20: Report true vertical thickness of permafrost in Box 20. Provide MD and TVD for the top and base of permafrost in Box 28. Item 23: Attached supplemental records for this well should show the details of any multiple stage cementing and the location of the cementing tool. Item 24: If this well is completed for separate production from more than one interval(multiple completion),so state in item 1,and in item 23 show the producing intervals for only the interval reported in item 26. (Submit a separate form for each additional in Item 27: Method of Operation: Flowing,Gas Lift,Rod Pump,Hydraulic Pump,Submersible,Water Injection,Gas Injection,Shut-in,or Other(explain). Item 28: Provide a listing of intervals cored and the corresponding formations,and a brief description in this box. Submit detailed description and analytical laboratory information required by 20 AAC 25.071. Item 30: Provide a listing of intervals tested and the corresponding formation,and a brief summary in this box. Submit detailed test and analytical laboratory information required by 20 AAC 25.071. Form 10-407 Revised 12/2009 Pax-3 Ninilchik Unit / Paxton Pad Sundry Attachment List Directional Survey Repeat formation test Well Schematic Logs CA,Ccl.,C6t- • Dual Radial/Gamma/CCL/Cement Bond Log • Compressional Waveform Processing, 1:240 Scale MD (3-24-10) • Compressional Waveform Processing, 1:600 Scale MD (3-24-10) Cad;,f(f ,19,ro Gamma Ray, Acoustic Caliper, Resistivity, Porosity, Bulk Density„ ■ oN.1 1:240 Scale, TVD (3-1-10) • Gamma Ray, Acoustic Caliper, Resistivity, Porosity, Bulk Density„ 1:240 Scale, MD (3-1-10) • Gamma Ray, Acoustic Caliper, Resistivity, Porosity, Bulk Density„ 1:600 Scale, TVD (3-1-10) • Gamma Ray, Acoustic Caliper, Resistivity, Porosity, Bulk Density„ 1:600 Scale, MD (3-1-10) • Gamma Ray & Caliper, Resistivity &Perm, Porosity, T2 Distribution, Volumetrics, 1:240 Scale TVD (3-1-10) • Gamma Ray & Caliper, Resistivity &Perm, Porosity, T2 Distribution, Volumetrics, 1:240 Scale MD (3-1-10) • Gamma Ray & Caliper, Resistivity &Perm, Porosity, T2 Distribution, Volumetrics, 1:600 Scale TVD (3-1-10) • Gamma Ray & Caliper, Resistivity &Perm, Porosity, T2 Distribution, Volumetrics, 16040 Scale MD (3-1-10) • Gamma Ray & Caliper, Resistivity &Perm, Porosity, T2 Distribution, Volumetrics, 1:240 Scale MD (3-22-10) • Gamma Ray & Caliper, Resistivity &Perm, Porosity, T2 Distribution, Volumetrics, 1:600 Scale MD (3-22-10) Compact Disc with Log files PAX-3 Permit#: 209-168 Paxton Pad API#: 50-133-20588-00-00 713' FNL, 2,929' FEL Prop.Des: Sec. 13, T1S, R14W, S.M. (Alk KB elevation: 171' (21'AGL) _ ` Latitude: 60°05'44.07"N Longitude: 151°36'39.03"W Conductor 20" X-56 129 ppf Spud Date: 2:00hrs 3/1/10 Top Bottom TD Date: 3/18/10 MD 0' 98' Rig Released: 6:00hrs 3/29/10 ND 0' 98' PA#: I 1 y Surface Casing i 9-5/8" L-80 40 ppf BTC I Top Bottom MD 0' 2,520' Chemical Injection Mandrid ND 0' 1,441" @ 1,508'MD 12-1/4"hole Cmt w/595 sks(263 bbls)of 12 ppg Type-1 cmt.240sks(106 bbls)to surface 4-1/2"ZXP Liner Top Packer Tie-Back Tubing 4-1/2" L-80 12.6 ppf IBT-M (2,271'-2,274'MD) 1 1 Tom Bottom MD 0' 2,299' r TVD 0' 1,408' Liner Hanger Baker 9-5/8'by 4-1/2" Production Liner (2,274'-2,284'MD) 4-1/2" L-80 12.6 ppf Hydril 563 Top Bottom Stage Cementer Collar MD 2,234' 7,418' ND 1,399' 4,182' @ 3,261'MD X X 8-1/2"hole Cmt w/210 sks(78 bbls)of 12.5 ppg Class G Lead&1,075 sks(226 bbls)of 15.8 ppg Class G Tail. 315 sks(100 bbls)to surface. 4-1/2"Overshot Used 305 sks(65 bbls)of 15.8 ppg Class G on 2nd @ 3,264'MD cementing of 4-1/2"casing. 5-1/2'overall length w/4'swallow KOP @ 170'MD/ND Build 4°/100"from 170'-2,240'MD Hold 81° from 2,240'-3,650'MD Drop 1.25°/100' to 7,290'MD Final angle 35.6° at 7,290'MD @ PBTD Azimuth: 355.3 deg. rillilliiil s: • TVD Ft Gun Type Date 6,452' 3,381'-3,397' 10 60°,6SPF 4/18/10 Marker Joint s(MD): 6,542' 3,464'-3,471' 8 60°,6SPF 4/20/10 pi @ 6,403' 6,632' 3,540'-3,544' S 60°,6SPF 4/20110 6,715' 3,605'-3,611' 7 60°,6SPF 4/18/10 11 UT 6,730' 3,617'-3,623' 8 60°,6SPF 4/18/10 Q hi TD PBTD 7,414'MD 7,218'MD 4,179'ND 4,020'ND Well Name&Number: Paxton#3 Lease: Ninilchik Unit Municipality: Kenai Peninsula Borough State: Alaska Country: USA Perforations(MD): 6,432'-6,730' Perf(TVD): 3,381'-3,623' Angle @ KOP&Depth: 4°/100' @ 170 ft Angle @ Perfs: 35.5° Date Completed: 4/18/2010 Ground Level: 150'(AMSL) RKB: 21'(AGL) Revised by: Kevin Skiba Revision Date: 5/12/2010 M a- -0 -5—.•) (0 LC) co (a CO co CO CO CO CO M CU C6 CIS C6 CO CO L M CD p Oj M C C C C C C C C O C . 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Install grating around wellhead.Tie off blocks.Stage equipment for transport.Prep parts house. Load matting boards on trailer. Clean up location. 00:00 06:00 6.00 MOB RIG AF PTSM:Load trailers.Prep electrical&welding.Band loaded pallets. Remove wire from ice. Report Date: 2/18/2010 Job Category: DRILLING 24 Hr Summary Rig up GD-1 Ops Trouble Start Time End Time Dur(hrs) Ops Code Activity Code Status Code Comment 06:00 00:00 18.00 RURD RIG AF PJSM: Unplug mechanic shop.R/D weather station&dish.Load welding shop. Move out carrier,pits,pump room,boiler&generator house.Blow down camp,freeze protect&prep for move.Load matting boards&light plants. R/D communications.Repair air line on sub.Lay down herculite.Set matting boards.Spot sub base over hole.Spot break room,change house, camp generator house&mud man's trailer.Scope up sub base. 00:00 06:00 6.00 RURD RIG AF PTSM:Repair&replace water pump fittings for rig camp.R/U camp water. Install cylinder tarps on sub base.Repair transmission linkage on loader. Pull out wings on sub base. Report Date: 2/19/2010 Job Category: DR ILLING 24 Hr Summary Rig up GD-1 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:Prep dresser sleeves on pump room.stand handrails on generator house.R/U handrails on pits.Fuel equipment.Spot pump room&pits.Open boat ramp. 12:00 18:00 6.00 RURD RIG AF PTSM:Suck pits&pump room together.Raise gas buster.Finish setting matting boards.Spot generator house,boiler house,water house&hansen tank.Plug in generator house,boiler house,pits,pump room&cooling tower. Rig up air,steam&water hoses between boiler&pits.Replace batteries on carrier#1. 18:00 00:00 6.00 RURD RIG AF PJSM:Spot co.man/toolpuser living quarters&rig up power&water.Spot parts house&mechanic shop,and clean up same.Connect water well to camp&fill up tank. Install matting boards under sub base tires.Connect power&water to directional trailer.Put dunnage under hansen tank.Repair fuel hose on carrier.Test run generator#1. 00:00 06:00 6.00 RURD RIG AF PTSM:Clean mud boat&sumps.Change out vacuum gauge on degasser. Change fittings on fuel hose from pump room to carrier.Clean&organize boiler house&rig water tank.Test koomey bottles.Inventory pump parts& screens. Report Date: 2/20/2010 Job Category: DRILLING 24 Hr Summary Rig up GD-1 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:Finish testing koomey bottles. Install dresser sleeves between pumps&pits.Level sub base.R/U Gai-Tronics to camp.Replace valve on blow down line in pits. Install derrick house.Unload trailers.R/U trip tank& work platform in cellar. 12:00 18:00 6.00 RURD RIG AF PJSM w/ASRC crane operator:Crane up fuel tank&ODS grey iron.Raise beaver slide&windwalls.Set choke house,flow line panic line&ODS stairs.R/D M-I trailer&move out.Spot carrier inline w/mud boat.Move in& R/U M-I trailer. Fuel rig.Troubleshoot"D"model loader(oil leaking). 18:00 00:00 6.00 RURD RIG AF PJSM:Crane DS grey iron,dog house,BOP conex stairs&centrifuge unit. Spot cuttings box&welding shop.Clean up welding shop. Install 2" weld-o-let on stand pipe for MWD pressure transducer.Connect air,water& steam lines to choke house. www.peloton.com Page 1/25 Report Printed: 5/21/2010 -� Marathon JJperations Summary Report MARATHON ®Oil Cornpany Well Name: PAXTON 3 Casing Flange Elevation(ft) Ground Elevation(ft) KB-Casing Flange Distance(ft) KB-Ground Distance(ft) Spud Date 'Rig Release Date 150.00 21.00 3/1/2010 3/20/2010 Ops Trouble Start lime End Time Dur(hrs) Ops Code Activity Code Status Code Comment 00:00 06:00 6.00 RURD RIG AF PTSM:Finish welding out weld-o-let.Spot carrier onto mud boat.Level& install turnbuckles on carrier.Repair lights on loader.Fabricate new pin for derrick wind walls. Prep derrick to raise.Grease crown&inspect shieves. Bleed air from generator day tanks. Daily Operations Report Date: 2/21/2010 Job Category: DRILLING 24 Hr Summary --- - Rig up GD-1.Modify pad eyes in derrick for torque drive turnbuckles.Con't rig up GD-1. 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. Lower carrier skirt. Raise derrick. R/U DS stairs to carrier. R/U water line to rig. Trouble shoot hydraulic hose on 966D loader. Find loose flange connection on hose. Plug in carrier,centrifuge and BOP connex lights. PJSM. Crane floor plate and back windwalls. R/U stairs on DS and ODS to rig floor. Unload trailers,lay rig mat for oil products. R/U choke lines to poor boy.R/U flow lines. R/U Geronimo line. 12:00 14:00 2.00 RURD RIG AF PTSM:Prep&scope up derrick.Connect hydraulic lines on rig floor. Unspool cables&service loop.Plug in choke house&dog house.Tighten derrick turnbuckles.Level rig floor.R/U trip tank gauge. Mount shock hoses. Spot&R/U mud pump#3.R/U centrifuge. Replace swivel on gunline in pill pit#4.Fill boiler&fire up.Circ water around pits&pump room.R/U derrick board. 14:00 20:00 6.00 REPAIR RIG TA MSTD PJSM:Cut out lower set of pad eyes in derrick for torque tube turnbuckles. Weld lower set of modified pad eyes in derrick. 20:00 00:00 4.00 RURD RIG AF PJSM:Install cylinder socks on raising rams.R/U lights in dog house& choke house.R/U&turn on steam around rig.R/U stairs around mechanic shop&parts house.C/O control valve on#1 manrider.Install front tarps on carrier. 00:00 06:00 6.00 RURD RIG AF PTSM:Repair BOP conex electrical plug.Repair lights on loader.Build heat trace for#3 mud pump pop-off line.R/U cat walk&beaver slide.Set BOP conex stairs.R/U panic line. Report Date: 2/22/2010 Job Category: DRILLING 24 Hr Summary Rig up GD-1.Con't make modifications on turnbuckles in derrick for torque tube. Install&test starter head. Begin N/U diverter system. Ops Trouble Start lime End lime Dur(hrs) Ops Code Activity Code Status Code Comment 06:00 09:30 3.50 RURD RIG AF PJSM.R/U Derrick board. Repair derrick ODS windwall pin. Complete steam circuit around rig. R/U rig floor mud manifold. Install choke line chute. Caulk rig floor seams. 09:30 12:00 2.50 REPAIR RIG TA MSTD PJSM. Cut off torque tube turnbuckle pad eyes(second set above floor) Prep to berm rig. 12:00 15:30 3.50 REPAIR RIG TA MSTD PJSM. Modify torque tube pad eyes(cut off 4"so that center of the hole in the pad eye is 4"above the beam). Weld pad eyes to the beam. Cut 6"off of the DS collar finger and weld on cap. 15:30 18:00 2.50 REPAIR RIG TA MSOT Repair hand rail on DS dog house landing.Repair pin in v-door. 18:00 00:00 6.00 RURD RIG AF PJSM:Cut&dress 20"conductor. Install starter head&test to 300 psi f/10 min(ok).Berm up around rig.Set diverter stack in cellar. 00:00 06:00 6.00 RURD RIG AF PTSM:Finish berming up around rig.Install 2"valve on conductor.R/U kill line hose&connect to conductor.N/U diverter stack.Install flow line extension.N/U bell nipple&koomey lines. Report Date: 2/23/2010 Job Category: DRILLING 24 Hr Summary N/U diverter system.Con't rig up GD-1 Ops Trouble Start Time End Time Dur(hrs) Ops Code Activity Code Status Code Comment 06:00 07:00 1.00 NUND BOPE AF PJSM. N/U diverter line. Remove power steering pump on#2 carrier motor. Change rotation and install. 07:00 12:00 5.00 RURD RIG AF PJSM. R/U bleeder line,fill up line,and trip tank hoses. Chain down diverter line and stack. Make new hydraulic hose f/trip tank pump. Change oil in#2 carrier. PJSM. P/U torque tube. Install stong back and turnbuckles to floor plate. Replace gun line valve in pit#5. www.peloton.com Page 2/25 Report Printed: 5/21/2010 AK) ryas operations Summary Report MARAmo ®Oil nY Well Name: PAXTON 3 Casing Flange Elevation(ft) Ground Elevation(ft) KB-Casing Flange Distance(ft) KB-Ground Distance(ft) Spud Date Rig Release Date 150.00 21.00 3/1/2010 3/29/2010 Ops Trouble Start Time End Time Dur(hrs) Ops Code Activity Code Status Code Comment 12:00 18:00 6.00 RURD RIG AF PTSM:P/U&install torque tube.Install turnbuckles.Level torque tube w/ laser level.Level rig floor. Install upper MWD pressure transducer on standpipe. 18:00 00:00 6.00 RURD RIG AF PJSM: Inspect tuggers.P/U top drive. 00:00 06:00 6.00 RURD RIG AF PTSM:CIO wear pads on top drive torque bushing. R/U kelly hose&choke line hose.Install torque bushing,bails&elevators.R/U pipe spinners&rig tongs.Spot Baker&Epoch shacks.Shortened hydraulic hoses for elevators.Heat trace&insulate suction&pop-off lines to#3 mud pump. Daily Operations Report Date: 2/24/2010 Job Category: DRILLING 24 Hr Summary Slip drlg(line.Replace break pads on drawworks.P/U 80 jts 5"dp&rack back.Rebuild 4"Demco valve on standpipe.Clean&inspect poorboy degasser. Prep to remove carrier#1 transmission. Ops Trouble Start Time End Time Dur(hrs) Ops Code Activity Code Status Code Comment 06:00 07:30 1.50 SERVIC RIG AF PJSM. Slip 33'drlg line. Adjust kick rollers. Adjust drum brakes and test. Set pipe racks. 07:30 09:00 1.50 RURD RIG AF PJSM. R/U carrier tarps. R/U geolograph. Lay out 5"DP on racks. 09:00 12:00 3.00 SERVIC RIG AF PJSM. Remove brake callers and replace disc brake pads. Install and shim calipers. Install tarps on derrick base. 12:00 20:00 8.00 PULD DP AF PTSM: P/U 80 jts 5"drill pipe&rack back.Take top drive measurements. 20:00 22:00 2.00 RURD RIG AF PJSM: Install valves on starting head. R/U fill up hose on trip tank.Repair cellar grating.Test run#2 mud pump.Flush through poorboy degasser. 22:00 00:00 2.00 RURD RIG TA MSHS Remove handrails&cover to drivelines.Blow down standpipe&choke hose. -- — ------------ ------------------ 00:00 06:00 6.00 RURD RIG TA MSHS PTSM: Remove drive line&shifter assy on#1 carrier transmission,and begin prep for removal.Rebuild 4"Demco valve on standpipe.C/O heater in co.man's office.Clean&inspect poorboy&u-tube.Transfer fuel to camp generator. Report Date: 2/25/2010 Job Category: DRILLING - 24 Hr Summary Replace#1 Allison transmission on carrier, Replace brake pads throughout carrier,Continue various housekeeping&maintenance tasks around the rig& location. Ops Trouble Start Time End lime Dur(hrs) Ops Code Activity Code Status Code Comment 06:00 12:00 6.00 REPAIR RIG TA MSOT PJSM,Install/Test low tq valve on mud manifold, Install new actuator on trip tank valve,Troubleshoot topdrive allignment issues,Seal crack on rig floor, Prepare for transmission swap on carrier,Change oil in C loader,Rig up electrical shop. 12:00 18:00 6.00 REPAIR RIG TA MSOT PTSM,Remove#1 transmission with crane&set in its replacement, Remove brake pads from carriers,Set&level pipe racks prior to loading 9 5/8"csg,Trim Herculite around containment berms,Monitor and pump fluid accumulation near#3 mud pump,Continue housekeeping activities:Clean choke house&worms corner. 18:00 00:00 6.00 REPAIR RIG TA MSOT PJSM,Continue rigging up replacement carrier transmission,Install new pads on the spare carrier's disk brakes,Continue housekeeping activities: Clean choke house,wash the roof of the pits as well as the pump room, wash#3 mud pump,paint in the pits. 00:00 06:00 6.00 REPAIR RIG TA MSOT PTSM,Complete installation of replacement transmission and construct new hoses,Funtion test annular&knife valve,Continue housekeeping activities around the rig(pump room,rig floor,doghouse,boiler house,etc.), Troubleshoot electrical issue with#1 carrier engine. Report Date: 2/26/2010 Job Category: DRILLING 24 Hr Summary Rack,Clean,Drift,&Strap 9 5/8"surface csg, Function test#1 carrier engine&transmission,Fabricate man-rider control brackets,Function test 9'bales without success(interference with pipe handling worm gear),Replace with standard bales,P/U 5"HWDP&set of jars,Continue housekeeping activities. Ops Trouble Start Time End Time Dur(hrs) Ops Code Activity Code Status Code Comment 06:00 12:00 6.00 REPAIR RIG TA MSOT PJSM. Rewire start/stop switch on#1 carrier motor. Shovel snow and sand walkways. Pressure wash inside sub base. Remove protectors on 9 5/8" casing. Work on shifter adjustment for#1 carrier transmission. Repair leak on airline for trip tank actuator. Revise JSAs. www.peloton.com Page 3/25 Report Printed: 5/21/2010 M Marathon Sperations Summary Report MARATHON a Oil Company Well Name: PAXTON 3 Ops Trouble Start Time End Time Our(hrs) Ops Code Activity Code Status Code Comment 12:00 14:00 2.00 REPAIR RIG TA MSOT PJSM. Remove protectors on 9 5/8"casing and drift. Strap casing. Function test#1 carrier engine transmission(OK). 14:00 18:00 4.00 SERVIC RIG CS _ PJSM. Change oil in#2 generator. P/U a joint of 5"DP and set in rotary. Check top drive alignment by making a connection(OK). Remove elevators and bales. Remove clamp from bales. Install 9'bales. Install elevators and clamp. Function test top drive w/9'bales. 18:00 00:00 6.00 SERVIC RIG CS PJSM, Change oil in#1 generator,Fabricate mounting brackets for man-rider controls,Paint gun lines and hatches in the pits,Prepare 9 5/8" csg(rack,clean,drift,&strap).Cover csg with Herculite. 00:00 01:00 1.00 SERVIC RIG CS PJSM,Remove 9'bales due to interference with pipe handler worm gear, Replace with original bales. 01:00 05:00 4.00 PULD DP CS PJSM,P/U,Rack,&Strap 5"HWDP&set of jars. 05:00 06:00 1.00 SERVIC RIG CS Continue maintenance&housekeeping duties, Rebuild mix pump, Troubleshoot electric heater by the driller's console,R/U autodriller,Maintain the location grounds. —-------- ----- Daily Operations Report Date: 2/27/2010 Job Category: DRILLING 24 Hr Summary —Continue various housekeeping&maintenance tasks,Perform rig service,Continue winter weather preparations to camp&location,Fill cement silos,Set cuttings boxes,Replace seals in#1 carrier water pump, Ops Trouble Start Time End Time Dur(hrs) Ops Code Activity Code Status Code Comment 06:00 12:00 6.00 RURD RIG CS PJSM. Replace bad transformer and fix plug on heater by drillers console. Repair leak on air hose reel on rig floor. Paint pit agitator motor housings. Weld base plate on conductor. Service top drive and grease crown. Troubleshoot electric heater in choke house. Weld"D"ring on on mouse hole. P/U dart and TIW valve. Transfer fuel to camp generator. Set vac boxes. Load cement silos. 12:00 18:00 6.00 RURD RIG CS PTSM.Repair berm around dragon wagons.Repair cut in liner. Skirt company man's trailer.Run block heater cable for carrier#2.Change out fuel hose/valves on rig fuel tank. Calibrate chart recorder in choke house. 18:00 00:00 6.00 RURD RIG CS PJSM,Blowdown all surface equipment,Replace leaking o-rings in tugger diverter valves,Remove#1 water pump to replace seals,Mount chain fall in cellar,Continue housekeeping&general maintenance activities. 00:00 06:00 6.00 RURD RIG CS PTSM, Rebuild water pump on#1 carrier, Run lines to BHI&Epoch quarters,Continue housekeeping&maintenance activities. Report Date: 2/28/2010 Job Category: DRILLING _ 24 Hr Summary Continue various housekeeping&maintenance activities,Install repaired#1 carrier water pump,Install Swaco SuperChoke with requested calibrated guages, R/U directional equipment,Stap directional tools,M/U&rack back 1 std of monels,Begin mixing spud mud,Prepare for diverter test. Ops Trouble Start Time End Time Dur(hrs) Ops Code Activity Code Status Code Comment 06:00 12:00 6.00 RURD RIG CS PJSM. Cont.to Install#1 water pump. Change out bad heat pads on the manlift. Repair rip in rig underlayment. Replace matting board and berm. P/U 12 1/4"bit and bit braker. Change air and hydraulic filters on the manlift. Pressure wash in pits. Install Swaco choke panel gauges(calibrated as per AOGCC request). 12:00 18:00 6.00 RURD RIG CS PTSM. R/U directional driller and MWD unit. Layout and strap directional tools. R/U mud loggers unit.Work on manrider controls. R/U jet hose for flowline. Begin filling pits. --- --- — --------- 18:00 00:00 6.00 RURD RIG CS PJSM,M/U&Rack back 1 std monels,Break in new disc brakes,Continue manrider control fabrication, Install snub post,Weld suction handle in pit#2, Continue various housekeeping&maintenance activities. 00:00 06:00 6.00 RURD RIG CS PJSM,Mix spud mud, Install BPA for BHI AutoTrak&connect gooseneck transducer,Flush pop-offs&check interlocks on all 3 mud pumps, Begin repairing leaks on v-door tugger controls,Prepare for diverter test,Continue various housekeeping&maintenance activities. Report Date: 3/1/2010 Job Category: DRILLING 24 Hr Summary Complete all housekeeping and maintenance activities. R/D diverter and associated equipment to rotate it 180°.R/U&Test diverter(witnessed by AOGCC representative).M/U BHA.Wash to bottom and tag at 98'.Spud in rotating from 98'to 151'. Resolved tight hole encountered at 142'. www.peloton.com Page 4/25 Report Printed: 5/21/2010 (iliMarathon Jperations Summary Report mmo ®Oil any Well Name: PAXTON 3 Ops Trouble Start Time End Time Our(hrs) Ops Code Activity Code Status Code Comment 06:00 09:30 3.50 RURD RIG CS PJSM. Thaw out toolpusher's trailer. Cont.to mix spud mud. Repair broken wires on gaitronix unit in the pits. Calibrate gas alarms. Repair leak on hydraulic hose on"V"door tugger controls. 09:30 12:00 2.50 RURD RIG CS PJSM. AOGCC inspector Lou Grimaldi requested the diverter line to be rotated 180 deg. L/D mouse hole. Remove safety chains from diverter. 12:00 18:00 6.00 RURD RIG CS PJSM. R/D fillup line,bleeder line and trip tank line.N/D bell nipple. N/D diverter line and diverter. Rotate diverter spool 180°. Move Dragon wagons and hydrovac. N/U diverter. N/U diverter line. R/U riser. Install manual manridder controls. 18:00 00:00 6.00 RURD RIG CS PJSM.Complete installation of manrider controls.R/U fill up,bleeder,and trip tank lines.R/U trip tank actuator and trip tank alarm.Complete R/U of diverter line.R/U Koomey lines and knife valve. Complete diverter test with AOGCC representative Bob Noble. 00:00 02:00 2.00 PULD BHA AF PJSM.M/U bit and BHA.Scribe motor&MWD.Calibrate Epoch block height&hole depth. 02:00 03:00 1.00 DRILL ROT AF Wash to bottom tagging at 98'.Spud in rotating from 98'to 142'.35 rpm, 300 gpm,285 psi,WOB-1 klbs,Tq. 1 k-ftlbs. Spud well @ 02:00hrs 3/1/2010 03:00 05:00 2.00 WORK PIPE TA NDSP After making connection,motor appeared to stall as pump pressure spiked to 3000 psi.Driller began working pipe upward while rotating and could not descend.At 132',rotation,movement,and circulation ceased.The decision was made to break the stand off roughly 12'above rig floor and stand it back providing room to work the pipe upward.Circulation,rotation,and movement was restored.Large wafers of coal followed by substantial amounts of gravel were seen crossing the shakers.Decision was made to raise mud viscosity from 76-95 cp. 05:00 06:00 1.00 DRILL ROT AF Rotate from 142'to 151'with 35 rpm,320 gpm, 320 psi,WOB-2 klbs,Tq. 1 kft-lbs. Daily Operations Report Date: 3/2/2010 Job Category: DRILLING 24 Hr Summary Pick up remaining BHA components&drill 1000'of build section from 151'to 1151'.Perform various housekeeping and maintenance activities. Ops Trouble Start Time End Time Dur(hrs) Ops Code Activity Code Status Code Comment 06:00 08:00 2.00 DRILL ROT AF PJSM. Drill 12 1/4"build section F/151'to 200'Parameters:375 GPM 600psi 2-5K WOB 50RPM 2K Ft-lb ART=.6hrs AST=1.0hrs. 08:00 08:30 0.50 CIRC MUD AF PJSM. Circ.clean 375GPM 500psi. POOH to 87'rack back 5"HWDP. 08:30 09:30 1.00 TRIP BHA AF PJSM.M/U and RIH w/monel CSDP's. Wash down F/141'to 200'. 09:30 12:00 2.50 DRILL ROT AF Drill 12 1/4"build section F/200'to 332'. Parameters:370 GPM 650psi 2-5K WOB 50RPM 2K Ft-lb ART=.2hrs AST=1.7hrs P/U 47K S/O 40K ROT 40K. 12:00 14:00 2.00 DRILL ROT AF Drill 12 1/4"build section F/332'to 408'. Parameters:370 GPM 650psi 2-5K WOB 50RPM 2K Ft-lb ART=.4hrs AST=.7hrs 14:00 15:00 1.00 CIRC MUD AF Circ.clean CBUX2. Attempt to POOH. Hole tight on bottom. Circ.clean CBUX2 370GPM 650psi. 15:00 15:30 0.50 TRIP BHA AF Flow check and POOH to 203'. 15:30 16:00 0.50 TRIP BHA AF M/U 8"shock sub and RIH w/HWDP. 16:00 18:00 2.00 DRILL ROT AF Drill 12 1/4"build section F/408'to 508'. Parameters:390 GPM 750psi 2-5K WOB 50RPM 2K Ft-lb ART=.4hrs AST=.8hrs P/U 52K 5/0 45K ROT 50K 18:00 00:00 6.00 DRILL ROT AF Drill 12 1/4"build section from 508'to 841'. Parameters:55 rpm,595 gpm, 1050 psi,5-10 klbs WOB, 2 kft-Ibs Tq. ART=1.5 hrs&AST=1.8 hrs. P/U 65 klbs,S/O 55 klbs,ROT 60 klbs. Mud:9.0 ppg&60cp. 00:00 06:00 6.00 DRILL ROT AF Drill 12 1/4"build section from 841'to1151'.Parameters:55 rpm,595 gpm, 1450 psi,5-10 klbs WOB, 2 kft-Ibs. ART=1.6 hrs&AST=2.2 hrs. P/U 65 klbs,S/0 55 klbs, ROT 60 klbs.Mud:9.0H ppg&60cp. Report Date: 3/3/2010 Job Category: DRILLING 24 Hr Summary Drill 577 12 1/4"build section from 1151'to 1728'.Troubleshoot#1 transmission issue.Circulate and condition wellbore. Perform wiper trip back to conductor from 1728'to 76'.Commence removing#1 carrier transmisson. www.peloton.com Page 5/25 Report Printed: 5/21/2010 mo-- Marathon )perations Summary Report ®pi ny Well Name: PAXTON 3 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 build section F/1151'T/1362'580gpm1450 psi.55rpm.3-6klbs wob.3kft-lbs tq.p/u 68klbs s/o 55klbs Rt 62klbs.ART=.7hrs AST=1.4hrs. mud 9.0 68vis. No gain/loss 12:00 18:00 6.00 DRILL ROT AF Drill 12 1/4 build section F/1362'T/1601' 580 gpm 1450 psi.55rpm. 10-15klbs wob.4kft-lbs tq.p/u 68klbs s/o 55klbs Rt 62klbs.ART=1.7hrs AST=2.5hrs.mud 9.1 71vis.No gain/loss 18:00 21:30 3.50 DRILL ROT AF Drill 12 1/4"build section from 1601'to1728'.Parameters:55 rpm,580 gpm, 1600 psi, 10-15 klbs WOB, 4 kft-Ibs TQ. ART=1.1 hrs&AST=1.4 hrs. P/U 68 klbs,S/O 53 klbs,ROT 62 klbs.Mud:9.1H ppg&69 cp. No gain/loss. 21:30 22:00 0.50 INSPCT RIG TA MSOT While attempting to make a connection,driller was unable to pick up. Decision was made to circulate and condition the wellbore while troubleshooting the issue.Carrier transmission#1 was identified as the source(probable clutch issue). 22:00 23:00 1.00 CIRC MUD AF Circulate&condition the wellbore in preparation for upcoming wiper trip:40 bbl 120 cp sweep,2 B/U with additional lubricant.Substantial cuttings were returned over the shakers only to clean up quickly. 23:00 01:00 2.00 REPAIR RIG TA MSOT Circulate and condition wellbore while driveline to#1 denison is installed to provide power to the topdrive.Troubleshoot and reset PLCs. 01:00 04:00 3.00 TRIP WIPR AF PJSM, Check for flow-Static,Perform wiper trip from 1728'to 76'(inside conductor)without encountering any notable tight spots. Rack back HWDP, Jars,Shock Sub,and Monels leaving the remainder of the BHA in the rotary in preparation for transmission repairs. 04:00 06:00 2.00 REPAIR RIG TA MSOT PJSM,Blow down topdrive and all associated lines.Commence removal of #1 carrier transmission. Daily Operations Report Date: 3/4/2010 Job Category: DRILLING 24 Hr Summary Complete the replacement of#1 carrier transmission,Function test&Check fluids--GOOD,TIH from 76'to 1728'(bottom)without any notable issues, Continue drilling 12 1/4"build section from 1728'to 1855'. Ops Trouble Start Time End Time Dur(hrs) Ops Code Activity Code Status Code Comment 06:00 00:30 18.50 REPAIR RIG TA MSHS Continue Removal and replacement of#1 Carrier Transmission Hold PJSM ;With crane operator and crews. Remove#1 carrier transmission with crane.Set new Transmission and install on#1 carrier motor.Function test and check fluids. 00:30 02:30 2.00 TRIP DP AF TIH with remaining BHA and drill pipe from 76'to 1667'. No notable tight spots or bridges were encountered. 02:30 03:00 0.50 TRIP DP AF Break circulation&test BHI tools--GOOD.Wash from 1667'to 1728' (bottom).No fill encountered. 03:00 06:00 3.00 DRILL ROT AF Drill 12 1/4"build section from 1728'to 1855'.Parameters:55 rpm,580 gpm, 1600 psi, 10-15 klbs WOB, 5 kft-Ibs TQ. ART=1.4 hrs&AST=1.1 hrs. P/U 70 klbs,S/O 47 klbs,ROT 57 klbs. Mud:9.3 ppg&75 cp. No gain/loss. Report Date: 3/5/2010 Job Category: DRILLING 24 Hr Summary Drill 682'of 12 1/4"build section from 1855'to 2537'(TD).Circulate&condition wellbore,Commence first wiper trip in preparation for 9 5/8"surface casing. 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"build section from 1855'.T/2080'Parameters:55 rpm,580 gpm, 1600 psi, 10-20 klbs WOB, 3-7 kft-Ibs TQ. ART=2.5 hrs&AST= 1.1 hrs. P/U 64 klbs,S/O 43 klbs, ROT 54 klbs.Mud:9.4ppg. Increase low tq to 2.5%to aid in sliding No gain/loss. Pump 35bb1 sweep while drilling ,slight increase in cuttings returning over shakers.Run Centrifuge to cut mud weight 12:00 18:00 6.00 DRILL ROT AF Drill 12 1/4"build section from 2080'T/2320 Parameters:55 rpm,625 gpm, 1800 psi, 10-20 klbs WOB, 3-7 kft-Ibs TQ. ART=4.3 hrs&AST=.3 hrs. P/U 64 klbs,S/O 42 klbs,ROT 51 klbs.Mud:9.5ppg. No gain/loss. Run Centrifuge and and dump 50bbls mud www.peloton.com Page 6/25 Report Printed: 5/21/2010 M Marathon )perations Summary Report MARATHON Oil Company Well Name: PAXTON 3 Ops Trouble Start Time End Time Dur(hrs) Ops Code Activity Code Status Code Comment 18:00 23:30 5.50 DRILL ROT AF Drill 12 1/4"build section from 2320'to 2537(TD). Parameters:60 rpm,615 gpm, 1800 psi, 10-20 klbs WOB, 4-7 kft-lbs TQ. ART=4.8 hrs&AST=.4 hrs. P/U 62 klbs,S/O 40 klbs,ROT 49 klbs.Mud:9.5H ppg&70 cp. No gain/loss.Continue to run centrifuge while dumping and diluting(50 bbls). 23:30 00:30 1.00 CIRC MUD AF Circulate and condition wellbore in preparation for wiper trip:2 B/U--Slight increase in cuttings returning over shakers initially but quickly cleaned up. 00:30 05:00 4.50 TRIP WIPR AF PJSM.Check well for flow--STATIC.Blowdown topdrive&related components.Commence wiper trip from 2578'to 300'with SLM(No correction necessary).Notable tight spots requiring backreaming: 1872', 1801'. 05:00 05:30 0.50 SERVIC RIG AF Daily rig service and inspection. 05:30 06:00 0.50 TRIP WIPR AF PJSM,Continue wiper trip back to bottom from 300'to 2537'working any tight spots. Daily Operations Report Date: 3/6/2010 Job Category: DRILLING 24 Hr Summary TOOH from 2537'to surface, L/D BHA,R/U&Run 9 5/8"csg,Circulate and condition the wellbore, R/U&cement surface casing. Ops Trouble Start Time End Time Dur(hrs) Ops Code Activity Code Status Code Comment 06:00 07:00 1.00 TRIP WIPR AF Continue Rih f/1400'T/2490'precautionary Wash f/2490 t/2537'T/D.Tag bottom no fill.No problems on TIH,hole slick. 07:00 08:00 1.00 CIRC MUD AF Circulate 615gpm 1700psi at 2537'Circ.2x b/u increase lube to 3%and condition mud for casing.Saw hvy returns of cuttings over shakers on initial b/u.continue circulating until shakers cleaned up.Max trip gas 178units 08:00 10:00 2.00 TRIP DP AF Monitor well POOH to run 9 5/8 casing.from 2537'Max over pull 4klbs at 1854'work and clean up. No problems with tight hole on remainer of trip.No Gain/Loss 10:00 13:00 3.00 TRIP BHA AF PJSM:Stand Back hwdp and jars, Lay down shock sub x/overs 3 monels dc ,pony dc and mwd.B/O bit and lay down stabilizer and motor. 13:00 13:30 0.50 CLEAN RIG AF Clean and clear rig floor 13:30 18:00 4.50 RURD CSG AF PJSM;Rig up to run 9 5/8 casing. Adjust torque tube,C/O bails.Set snub post.Move tongs. P/U and install fill up tool.R/U 9 5/8 casing elevators, spider and casing tongs. Rig up stabbing board and tugger lines. 18:00 18:30 0.50 SAFETY MTG AF Hold safety meeting with Weatherford casing crew and all involved personnel.Thoroughly discuss operations and the hazards associated wtih the task.Explain all activities to new teammembers and discuss any questions or concerns. 18:30 00:30 6.00 RUN CSG AF Run 60 jts of 9 5/8"40#L-80 BTC casing with(4)tandem rise bow springs& (23)spiro glider centralizers without incident or issues.Shoe—2520'&Float --2434'. 00:30 01:30 1.00 CIRC MUD AF Circulate and condition the wellbore while reciprocating the pipe in preparation for upcoming cement job.B/U resulted in a slight increase in cutting volume and size over the shakers but cleaned up quickly.Mud properites prior to cementing:9.4 ppg,40 cp,YP-11. 01:30- 02:30 1.00 RURD CSG AF R/D Weatherford casing equipment: Fill up tool,Pneumatic elevators, Pneumatic slips,Tongs. Install 9 5/8"side-door elevators. 02:30 03:00 0.50 RURD CMT AF R/U BJ cement head and associated lines/iron. 03:00 03:30 0.50 SAFETY MTG AF Hold safety meeting with BJ cementers and all involved personnel. Thoroughly discuss operations and the hazards associated wtih the task. Explain all activities to new teammembers and discuss any questions or concerns. 03:30 04:00 0.50 BLOWDN EQIP TA CPEQ Blowdown topdrive and all associated lines including BJ's cementing lines. Troubleshoot flow obstruction.Repair and function bypass valves in the cellar. www.peloton.com Page 7/25 Report Printed: 5/21/2010 - M - arhon )perations Summary Report „'-o ®pi Company Well Name: PAXTON 3 Ops Trouble Start Time End Time Dur(hrs) Ops Code Activity Code Status Code Comment 04:00 06:00 2.00 PUMP CMT AF Pump 20 bbls Mud Clean II preflush with red dye.Pump 2bbls water ah'� Test cement lines to 2000psi--OK. Drop bottom plug. Mix and pump 595;-' sxs Type 1 cement with 22%bwoc LW-6,20%bwoc MPA-1,2%bwoc A-7, 1%bwoc A-2,0.3%bwoc CD 32,0.05%bwoc ASA-301,0.05%bwoc Static free,and 1 ghs FP-6L to yield 263 bbls of 12 ppg slurry.Drop top plug and kick out w/5bbls water from BJ unit. Swit�i-to rig p s and displace with 183 bbls of 9.4 ppg mud. Plug was not bumped. 6 b I&cement returned to surface(100%returns).Check floats--GOO ; ent in place at 06:00 hrs. Note Reciprocate casing 8'until) 135 bbls in annulus. Daily Operations Report Date: 3/7/2010 Job C ategory DRILLING _ 24 Hr Summary - ---- - R/D BJ cementers. Flush stack and associated lines.Nipple down diverter,diverter line,and knife valve.Clean pits and complete disposal of spud mud.Cut, dress,and buff 9 5/8"surface casing.Prepare and install Vetco Gray wellhead.Second attempt achieved a good pressure test.Mix Flo-Pro mud. Ops ` Trouble Start Time End Time Dur(hrs) Ops Code Activity Code Statue Code Comment 06:00 07:30 1.50 RURD EQIP AF Rig down cement head and lines.Blow down lines.Flush out diverter and flow line for any cement. 07:30 10:30 3.00 RURD OTHR AF R/D kill line to diverter.Rig rotary tong up.re install snub posts. 10:30 14:30 4.00 NUND BOPE AF Begin nipple down of diverter system.Remove 16"diverter line,Remove 16" knife valve,remove trip tank lines and bell/flow line nipple.Clean pits. 14:30 18:00 3.50 NUND BOPE AF PJSM.Complete rough cut of 9 5/8"surface casing(28.90').Cut 20" conductor.Complete final cut of 9 5/8"surface pipe(7.10').Dress and buff stump in preparation for Vetco Gray wellhead installation.Continue cleaning mud pits in preparation for Flo-Pro mud. 18:00 00:00 6.00 NUND BOPE AF - PJSM.Fold up stabbing board.Change out bales&elevators.Commence building Flo-Pro mud. Heat and prep Vetco Gray multibowl wellhead for installation.Commence first attempt to install wellhead without success. Teammembers were unable to seat the wellhead far enough down on the stump to attain a seal from the top o-ring. 00:00 03:00 3.00 NUND BOPE TA MSWH PJSM.Troubleshoot wellhead issue.Decision was made to use a joint of heavy weight and the test plug to properly seat wellhead.The topdrive ceased to function.It would not respond to any commands made from the drillers's console and would at times operate on its own accord.After further discussion,the decision was made to stab the BOP and slowy descend applying weight to the wellhead until it was properly seated. Install DSA and spacer spool.Stab BOP and seat the wellhead.Pressure test wellhead-- FAIL.Continue mixing Flo-Pro mud. 03:00 05:00 2.00 NUND BOPE TA MSWH PJSM.Remove BOP,DSA,spacer spool,and wellhead. Replace top o-ring on wellhead.Redress&buff stump in preparation for second attempt. Continue mixing Flo-Pro mud. 05:00 06:00 1.00 NUND BOPE TA MSWH PJSM. Reinstall wellhead,DSA,and spacer spool.Stab BOP and seat the wellhead.Pressure test wellhead--GOOD(15 mins @ 2100 psi).Continue mixing Flo-Pro mud. Report Date: 3/8/2010 Job Category: DRILLING 24 Hr Summary Nipple up BOPE,Begin testing BOP and all associated equipment,Troubleshoot lower pipe ram issue,Begin thawing frozen mud manifold and standpipe. Replace lower pipe ram seals. Ops Trouble Start Time End Time Dur(hrs) Ops Code Activity Code Status Code Comment 06:00 18:00 12.00 NUND BOPE AF PJSM:Set stack on wellhead and nipple up install bell nipple and flow line. N/U choke and kill lines.Run trip tank line.Hook up accumulator lines. Change out choke line.Install drip pan.Make up test joint set test plug .Shell test body to 500/2000psi&function test rams and annular. 18:00 21:00 3.00 TEST BOPE AF Commence testing of BOP and all related componants 250/2000psi 5min. Test gas alarms,Flow and PVT system.preform accumlator draw down test. www.peloton.com Page 8/25 Report Printed: 5/21/2010 Marathon arathon )perations Summary Report ltt„o pjlCOMPany Well Name: PAXTON 3 Ops Trouble Start Time End lime Dur(hrs) Ops Code Activity Code Status Code Comment 21:00 02:00 5.00 TEST BOPE TA MSBO A passing test was not achieved on the lower pipe rams.Open ram doors and inspect seals.The seals appeared dirty with cement/mud.Clean and install seals.Close ram doors and retest--Fail.Reopen ram doors to inspect seals.Decision was made to turn ram blocks over and retest while waiting for Weatherford to deliver new seals as well as continue to test other components.The second retest of the bottom rams resulted in failure.While attempting to reopen the ram doors the wrench broke.A new hammer wrench had to be fabricated. 02:00 04:30 2.50 BLOWDN EQIP TA MSFL While waiting for fabrication of hammer wrench,teammembers decided to blow down the topdrive and associated lines due to inclement weather conditions. It was discovered that the mud manifold and standpipe were plugged/frozen.Commence thawing activities. 04:30 06:00 1.50 TEST BOPE TA MSBO Continue work on bottom pipe rams removing the doors and replacing the seals.Continue thawing activities. Daily Operations Report Date: 3/9/2010 Job Category: DRILLING 24 Hr Summary Complete installation of new bottom 5"pipe ram seals.Test bottom pipe rams to 250/2000 psi--GOOD.Continue to thaw out mud manifold,kelly hose,and associated lines.M/U clean out assy.Pick up,strap,and rack back 100 jts of 5"drill pipe.Troubleshoot drawworks assignment switch issue.Repair frayed wires leading from the neutral safety switch on the transmission.Begin RIH with final 30 jts of 5"drill pipe to be picked up. Ops Trouble Start lime End Time Dur(hrs) Ops Code Activity Code Status Code Comment 06:00 08:30 2.50 TEST BOPE TA MSBO Replace 5"ram blocks on lower set of pipe rams.Test lower 5"rams 250/2000 5min test.test passed.Continue thawing out stand pipe and mud ■ lines 08:30 10:30 2.00 REPAIR RIG TA MSOT Continue to work on thawing out stand pipe and mud lines.Blow down lines, all lines clear 10:30 12:00 1.50 TEST CSG AF Test 9 5/8 Casing 1500psi for 30min test good.Blow down all mud and test lines 12:00 13:00 1.00 CLEAN RIG AF Blow Down all mud lines and#1,2&3 mud pumps 13:00 14:00 1.00 RURD OTHR AF Install turnbuckles and adjust torque tube 14:00 16:00 2.00 TRIP BHA AF P/U 8 1/2 clean out bha.Motor 8 1/2 bit 2x monels xover.rih with hwdp from derrick 16:00 17:00 1.00 TRIP DP AF P/U drift and rih W/5"drillpipe 17:00 20:30 3.50 REPAIR RIG TA MSHS Trouble shoot problem with selector switch on drillers panel 20:30 00:00 3.50 TRIP DP AF Continue strapping,picking up,and racking back 5"drill pipe while troubleshooting assignment switch issue with the drawworks. 00:00 02:30 2.50 REPAIR RIG TA MSHS Service topdrive and associated components.Continue troubleshooting drawworks assignment issue.Upon further investigation,it was discovered that wires routed from the neutral safety switch on the transmission had been frayed by the linkage resulting in a short.The wiring was repaired and set at a safe distance from the linkage.The assignment switch within the drillers console does show signs of wear and corrosion.A new switch has been ordered and will be installed as a preventative measure. 02:30 06:00 3.50 TRIP DP AF Continue strapping,picking up,and racking back 5".Commence RIH with last 30 jts to be picked up. Report Date: 3/10/2010 Job Category: DRILLING 24 Hr Summary TIH with remaining 30 jts of 5"dp with clean out assy,Tag cement/top of plug at 2388',Drill shoe tract/float equipment to 2520',Clean out cement from 2520' to 2537',Drill 20'new formation from 2537'to 2557',Displace spud mud with Flo-Pro,Perform FIT to 15.2 EMW--GOOD,TOOH&L/D clean out assy,M/U BHI intelligent BHA, Ops Trouble Start Time End lime Dur(hrs) Ops Code Activity Code Status Code Comment 06:00 08:30 2.50 TRIP DP AF PJSM;Rih drift and p/u 30jts 5"drillpipe.Continue Rih from derrick to 2388' and tag top of wiper plug 08:30 10:30 2.00 DRILL CMT AF Drill top plug and cement F/2388'to 2433'top of float collar,Drill float collar and firm cement F/2433'to top of shoe at 2519'.Drill out shoe to 2520', clean out old hole(firm cement 5'below shoe) to 2537' 10:30 11:30 1.00 DRILL ROT AF Drill F/2537'To 2557'new hole for fit test ---—_.._.___ -- - ------ -- ------ -- ----------------- 11:30 12:30 1.00 TEST LOT AF Preform FIT test 8.8mw 1444 tvd 480psi=15.2ppg EMW 12:30 13:30 1.00 BLOWDN EQIP AF Blown down Choke and kill lines Top Drive and mud line 13:30 15:00 1.50 TRIP DP AF POH f/2557'with 5"drillpipe www.peloton.com Page 9/25 Report Printed: 5/21/2010 / ) ryiar.l �onCOmpany .;Jperations Summary Report raaaTHo ®O Well Name: PAXTON 3 Ops Trouble Start Time End Time Dur(hrs) Ops Code Activity Code Status Code Comment 15:00 16:00 1.00 TRIP BHA AF POH stand back hwdp,jars and monel drill collars.Break out bit and lay down motor 16:00 17:00 1.00 PULD BHA AF P/U mag trak and break out stop sub and lay down 17:00 06:00 13.00 PULD BHA AF PJSM. P/U,M/U,&RIH with Intelligent BHA:Buck on 8 1/2"HCM 607ZX bit to AutoTrak X-Treme(verify non-rotating sleeve is functional). M/U, communicate&program OnTrak--GOOD.M/U,communicate,&load sources in CCN ORD tool. M/U,communicate,and function TestTrak-- FAIL.L/D TestTrak&replace with spare on location (communication/function test--GOOD).M/U,communicate,&program SoundTrak--GOOD.M/U,communicate,&program MagTrak with stop sub --GOOD.M/U filter sub,NMCSDPs,&float sub.Due to winter weather conditions(3°F),extensively cleaning all connections was time consuming and the tools needed to be warmed prior to link up by circulating warm mud through. Daily Operations Report Date: 3/11/2010 Job Category: DRILLING 24 Hr Summary Test nav track ok/Lay down MagTrak.TIH, Drill to 2723 No comms with steering head.POOH.Lay down autotrack and Iwd tools Run diagnostics on autotrack tools. Make up BHA Ops Trouble Start Time End Time Dur(hrs) Ops Code Activity Code Status Code Comment 06:00 08:00 2.00 TRIP BHA AF P/U and make up MagTrack,filter sub,top sub,Xover and pup.Run 1 stand of hwdp in hole.Pump through tools and test for comminuication with stearing head on auto track Attempt at 400gpm with no success.Increase pump rate to 500gpm.no change. 08:00 09:00 1.00 TRIP BHA TA MSDE Blow down lines,bpa and mud pumps. 09:00 09:30 0.50 TRIP BHA TA MSDE POH lay down MagTrack tool - 09:30 11:30 2.00 TRIP BHA TA MSDE Make up xovers and surface test AutoTrack steering head.Good test. Decision was made to leave MagTrack tool out of BHA. Make up stabilizer and crossover to replace MagTrack stabilizer.Blow down mud lines RIH with HWDP 11:30 13:30 2.00 TRIP DP AF Continue RIH with Drillpipe To 2527. 13:30 14:00 0.50 CIRC MUD AF Break circulation and fill drillpipe and circ.to shear mud 400gpm 1050psi increase to 485gpm 1250psi. 14:00 16:30 2.50 DRILL ROT AF Drill 8 1/2 tangent section from 2557'to 2723 Parameters: 120rpm, 518gpm, 1350 psi, 10-15 klbs WOB, 6 kft-lbs TQ. ART=1.7 hrs&AST= 0 hrs. P/U 75 klbs,S/O 29 klbs, ROT 52 klbs.Mud:8.9 ppg&56 cp.No gain/loss.Note: Unable to establish comms with steering head 16:30 17:00 0.50 CIRC MUD TA MDMT Circulate B/U 500gpm 1150psi at 2723' 17:00 18:30 1.50 TRIP DP TA MDMT Monitor well pooh F/2723'.Stop and blow down mud lines. 18:30 19:30 1.00 TRIP BHA TA MDMT PJSM:Stand back hwdp and jars. 19:30 02:00 6.50 TRIP BHA TA MSDE Plug into sound track(check Comms)good., Lay down stabilizer,x-over, filter sub and stop sub.PJSM; Unload sources, Plug into testrak(good Comms).Plug into ontrack mod motor and test B/O steering head and LID 02:00 04:30 2.50 REPAIR EQIP TA MSDE Run diagnostics on autotrack steering head and confirm head operating. Confirm Mod motor bad 04:30 06:00 1.50 TRIP BHA TA MSDE P/U MagTrack, B/O mod flex collar P/U steering head and mod stab. Report Date: 3/12/2010 Job Category: DRILLING 24 Hr Summary Make up Autotrak/LWD bha&test RIH Drill ahead Ops Trouble Start Time End Time Dur(hrs) Ops Code Activity Code Status Code Comment 06:00 15:00 9.00 TRIP BHA TA MSDE P/U ,M/U&RIH with AutoTrak M/U 8 1/2 bit M/U and program OnTrak.Ck Comms. M/U&load sources in CCN ORD tool.M/U communicate and function Tes Trak..M/U,communicate&program SoundTrak with stop sub. M/U Communicate&program MagTrak M/U filter sub&float sub.All test good. Pump 400gpm.Down link to AutoTrac.Confirm all tools functioning. Test Good.Run nonmag drill collars&HWDP in hole 15:00 17:00 2.00 TRIP DP TA MSDE Blow down mud lines,Pumps and bpa Continue RIH with 5"drill pipe f/896' to 2541' 17:00 18:00 1.00 CIRC MUD TA MSDE Circ.and shear mud and test autotrac tools at 2544'circ.until)shakers can handle 485gpm.Wash F-2678 to 2723' www.peloton.com Page 10/25 Report Printed: 5/21/2010 Marathon Jperations Summary Report (AOli n ®Oil Company Well Name: PAXTON 3 Ops Trouble Start lime End Time Dur(hrs) Ops Code Activity Code Status Code Comment 18:00 00:00 6.00 DRILL ROT AF Drill 8 1/2 tangent section from 2723'to 3049'Parameters: 120rpm, 500gpm, 1350 psi, 10-15 klbs WOB, 8-12 kft-lbs TQ. ART=4.2 hrs& AST=0 hrs. P/U 68 klbs,S/0 32 klbs, ROT50 klbs.Mud:9 ppg&56 cp.No gain/loss. Note limit ROP to 80fph due to magtrak logging tool abilty to process well data. 00:00 06:00 6.00 DRILL ROT AF Drill 8 1/2 tangent section from 3049'to 3365' Parameters: 120rpm, 500gpm, 1385 psi,6-12 klbs WOB, 6-9 kft-lbs TQ. ART=4.1 hrs&AST=0 hrs. P/U 70 klbs,S/O 40 klbs, ROT 52 klbs.Mud:9 ppg&56 cp.No gain/loss. Daily Operations Report Date: 3/13/2010 Job Category: DRILLING 24 Hr Summary Drill F 3365'to 4254,Wiper Trip,Slip/cut drilling line TIH Drill F/4254'-4316' Ops Trouble Start lime End Time Dur(hrs) Ops Code Activity Code Status Code Comment 06:00 12:00 6.00 DRILL ROT AF Drill 8 1/2 tangent section from 3365'to 3700' Parameters: 120rpm, 500gpm, 1450 psi,6-12 klbs WOB, 6-9 kft-lbs TQ. ART=4.2 hrs. P/U 72 klbs,S/O 42 klbs, ROT 53 klbs.Mud:9 ppg&56 cp. No gain/loss. 12:00 18:00 6.00 DRILL ROT AF Drill 8 1/2 tangent section from 3700'to 4030' Parameters: 120rpm, 500gpm, psi,6-12 klbs WOB, 6-9 kft-lbs TQ. ART=4.6 hrs. P/U 76 klbs, S/O 37 klbs, ROT 55 klbs. Mud:9.1 ppg&56 cp.No gain/loss.Run centrifuge to maintain mud weight at 9.0 18:00 21:30 3.50 DRILL ROT AF Drill 8 1/2 curve section from 4030'to 4254' Parameters: 120rpm, 500gpm, psi,6-12 klbs WOB, 6-9 kft-Ibs TQ. ART=2.9 hrs.P/U 80 klbs, S/O 40 klbs,Rot.57 klbs.Mud:9.1 ppg&56 cp. No gain/loss.Run centrifuge to maintain mud weight at 9.0 21:30 22:30 1.00 CIRC MUD AF Circulate B/U condition hole for wiper trip.500gpm 1350psi.Continue circulation until shakers clean up 22:30 01:00 2.50 TRIP WIPR AF Monitor well POOH(wiper Trip)F/4254'-2520'No overpulls Hole in good condition.No gain or loss 01:00 03:30 2.50 CUT WIRE AF PJSM:Slip and cut drilling line/Service rig Lube carrier,top drive blocks and crown. Inspect carrier drive line u-joints. 03:30 04:30 1.00 TRIP WIPR AF RIH F/2520'to 4193'Wash down f/4193 to 4254'.He slick,No gain/Loss 04:30 06:00 1.50 DRILL ROT AF Drill 8 1/2 curve section from 4254'to 4316' Parameters: 120rpm, 500gpm, psi,6-12 klbs WOB, 6-9 kft-lbs TQ. ART=1 hrs.P/U80 klbs, S/O 40 klbs,Rot.57 klbs.Mud:9.1 ppg&57 cp. No gain/loss. Report Date: 3/14/2010 Job Category: DRILLING 24 Hr Summary Drill F-4254't 5530(1214')Replace#1 mud pump dennison motor Ops Trouble Start Time End lime Dur(hrs) Ops Code Activity Code Status Code Comment 06:00 12:00 6.00 DRILL ROT AF Drill 8 1/2 hole from 4316'to 4635' Parameters: 138rpm,500gpm, psi, 12-18 klbs WOB, 6-7 kft-lbs TQ. ART=4.2 hrs.P/U 85 klbs,S/O 46 klbs, Rot 67 klbs.Mud:9.3 ppg&57 cp.No gain/loss. Run centrifuge to reduce mud weight f/9.3 to 9.1 12:00 18:00 6.00 DRILL ROT AF Drill 8 1/2 hole from 4635'to 4988' Parameters: 138rpm,500gpm, psi, 12-18 klbs WOB, 6-8 kft-lbs TQ. ART=4.7 hrs.P/U 106 klbs,S/O 53 klbs, Rot 75 klbs.Mud:9.3 ppg&57 cp.No gain/loss.Run centrifuge to reduce mud weight f/9.3 to 9.1 18:00 00:00 6.00 DRILL ROT AF Drill 8 1/2 hole from 4988'to 5319 ' Parameters: 138rpm,500gpm, psi, 12-18 klbs WOB, 6-8 kft-lbs TQ. ART=4.4 hrs.P/U 99 klbs,S/O 72 klbs, Rot 56 klbs.Mud:9.4 ppg&57 cp.No gain/loss.Run centrifuge to reduce mud weight f/9.4 to 9.2 00:00 06:00 6.00 DRILL ROT AF Drill 8 1/2 hole from 5319'to 5530' Parameters: 131rpm,400gpm, psi, 8-12 klbs WOB, 8-9 kft-lbs TQ. ART=3.6hrs.P/U 125 klbs,S/O 62 klbs, Rot 96 klbs.Mud:9.4 ppg&61 cp. No gain/loss.Run centrifuge to reduce mud weight f/9.4 to 9.2.Note#1 mud pump dennison failed.Replace with new motor. Report Date: 3/15/2010 Job Category: DRILLING _ 24 Hr Summary Drill f-5530-5588'Wiper trip,Drill f-5588-5673.Circ. POOH Due to P-rate www.peloton.com Page 11/25 Report Printed: 5/21/2010 M Marathon „operations Summary Report xtaaarxou ®Oil Company Well Name: PAXTON 3 Ops Trouble Start Time End Time Dur(hrs) Ops Code Activity Code Status Code Comment 06:00 08:00 2.00 DRILL ROT AF Drill 8 1/2 hole from 5530'to 5588' Parameters: 131rpm,400gpm, psi, 8-12 klbs WOB, 8-9 kft-lbs TQ. ART=hrs. P/U 125 klbs,S/0 62 klbs, Rot 96 klbs.Mud:9.4 ppg&61 cp. No gain/loss.Run centrifuge to reduce mud weight f/9.4 to 9.2.Note#1 mud pump dennison failed.Replace with new motor.P rate down to 15-20fph,suspect bit balling. 08:00 09:00 1.00 CIRC MUD AF Circulate and condition hole for wiper trip at 5588 400gpm 1350psi 131rpm. Continue circulating until shakers clean up 09:00 14:00 5.00 TRIP WIPR AF Monitor well. POOH(wiper Trip)F-5588-4254'Note: Wash&backream from 5526'up to 5143'.Pull out on elevators F-5143'to 4460'..RIH F-4460' to 5526'wash last 61'to bottom. No problems running back to bottom,hole slick.Repair to#1 mud pump dennison complete. 14:00 20:30 6.50 DRILL ROT AF Drill 8 1/2 hole from 5588'to 5673 ' Parameters: 145rpm,500gpm, psi, 8-32 klbs WOB, 8-9 kft-lbs TQ. ART=4.8 hrs.P/U klbs,S/O 62 klbs, Rot 96 klbs. Mud:9.5 ppg&61 cp.No gain/loss. Run centrifuge to reduce mud weight f/9.5ppg Dump 100bbIs and add in 100bbIs of 9.0mud in to system. Mud weight 9.3.Penetration rate 11-20fph due to suspected bit balling,vary bit weight from 10 to 32klbs with no improvement. Increase pump rate to 530gpm rotary to 145rpm.No change in P rate.Decision made to POOH. Note add nut plug to mud system with no improvement in P rate 20:30 21:30 1.00 CIRC MUD TA MDBM Circulate B/U 535gpm 1950psi at 5673'. 21:30 02:30 5.00 TRIP DP TA MDBM Monitor well, POOH f-5673'To 2520'No problems in open hole,pipe pulled W/O problems,hole slick.Blow down mud lines continue POOH to BHA 02:30 06:00 3.50 TRIP BHA TA MDBM PJSM;Stand back hwdp,jars and monel DC. Pull out to Mag Trak& SoundTrrak,plug in and down load data/stand back. PJSM:P/U and retrieve sources from TesTrak. Plug into and down load data. Daily Operations Report Date: 3/16/2010 Job Category: DRILLING 24 Hr Summary C/O bit Test Auto/trac lwd/bha Drill ahead f/5673't/6137' Ops Trouble Start Time End lime Dur(hrs) Ops Code Activity Code Status Code Comment 06:00 08:00 2.00 TRIP BHA TA MDBM Complete down loading of data from TesTrac.and stand back.Pull up Autotrac b/o Bit found bit balled up with two center jets plugged. 08:00 08:30 0.50 SERVIC RIG AF Service rig.Carrier,top drive,blocks and crown.Inspect drive lines on carrier 08:30 11:30 3.00 TRIP BHA TA MDBM M/U&RIH with AutoTrak M/U 8 1/2 bit M/U and program OnTrak. Ck Comms.M/U&Communicate&program TesTrac. 11:30 12:00 0.50 SAFETY SD CS Held Safety shut down.Trip tank valve was in open position while pumping 400gpm testing Autotrac/LWD tools causing the trip tank to be over filled by 22bbls.The 22bbls overflowed into cellar.Trip tank alarm was not functioning: 12:00 13:30 1.50 REPAIR RIG CS PJSM;Change out grabber box dies 13:30 16:00 2.50 TRIP BHA TA MDBM M/U and load sources in CCN ORD tool. M/U,communicate&program SoundTrak with stop sub. M/U Communicate&program MagTrak M/U filter sub&float sub.All test good.Pump 400gpm.Down link to AutoTrac. Confirm all tools functioning.Test Good.Run nonmag drill collars&HWDP in hole 16:00 20:00 4.00 TRIP DP TA MDBM Continue rih with 5"drillpipe F-896 to 2520'Stop at 2540,Test AutoTrac and LWD tools at 400gpm 1150psi,Continue RIH F-2540'to 5592'Wash down to 5673'.No issues with TIH,hole slick 20:00 02:00 6.00 DRILL ROT AF Drill 8 1/2 hole from 5673'to 5858' Parameters: 150rpm,500gpm, psi, 5-8 klbs WOB, 8-9 kft-lbs TQ. ART=2.8 hrs.P/U 145 klbs,S/O70 klbs, Rot80 klbs.Mud:9.3 ppg&55 cp.No Gain/Loss.Run centrifuge to maintain 9.3-9.4 mud weight 02:00 06:00 4.00 DRILL ROT AF Drill 8 1/2 hole from 5858'to 6135' Parameters: 150rpm,500gpm, 1980 psi, 10-12 klbs WOB, 8-10 kft-lbs TQ. ART=4.3 hrs. P/U 155 klbs,S/075 klbs, Rot 83 klbs.Mud:9.3 ppg&55 cp.No Gain/Loss.Continue running centrifuge Report Date: 3/17/2010 Job Category: DRILLING - 24 Hr Summary Drill F/6133'to 6854'. Circ.clean. Wiper trip to www.peloton.com Page 12/25 Report Printed: 5/21/2010 )perations Summary Report (PHI') Oil Company Well Name: PAXTON 3 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" tangent section from 6135'to 6410' Parameters: 130rpm, 500gpm, 2000psi, 8-14klbs WOB, 11 kft-lbs TO. ART=4.5hrs.P/U 162klbs,S/O 70klbs,Rot 93klbs. Mud:9.5 ppg&57 cp.Continue running centrifuge. 12:00 18:00 6.00 DRILL ROT AF Drill 8 1/2" tangent section from 6410'to 6537' Parameters:90-100rpm, 500gpm, 2000psi, 10-12 klbs WOB, 11-14kft-Ibs TQ. ART=4.5hrs.P/U 165 klbs,S/O 75 klbs, Rot 93 klbs.Mud:9.4 ppg& 51 cp.Continue running centrifuge. When MW reached 9.6ppg dumped 150bbls 9.6ppg mud and bled in a fresh 150bbls 8.5ppg Flopro mud. Added in fresh lubicant and dropped avg torque 13 kft-lb to 11 kft-lb. Caliper on LWD failed at 6410'. 18:00 01:00 7.00 DRILL ROT AF Drill 8 1/2" tangent section from 6537'to 6854' Parameters: 100rpm, 500gpm, 1800psi, 10-12 klbs WOB, 11-12kft-Ibs TO. ART=5.6hrs.P/U 170 klbs,S/O 75 klbs,Rot 100 klbs.Mud: 9.4 ppg& 51cp.Continue running centrifuge. 01:00 02:00 1.00 CIRC MUD AF Circ.clean(CBUX2)@ 6854'500gpm 2000psi 90RPM. 02:00 02:30 0.50 FLOW CHEK AF Flow check(well static). Fill trip tank and check trip tank alarm. 02:30 06:00 3.50 TRIP WIPR AF POOH to 6658'(tight spot).B/R F/6658'to 6278. Attempted to pull on elevators F/6278'but encountered tight spot at 6245'.Pulled 30k over string weight.Observed swabing while pulling through tight spots.B/R F/6245'to 5673'(bottom of previously drilled section). B/R with 327GPM 100psi 60RPM. Daily Operations Report Date: 3/18/2010 Job Category: DRILLING 24 Hr Summary Circ. B/U @ 5652'. Commence short trip to ensure hole cleaning&stability.Work tight hole and backream as necessary.Circulate&reciprocate the pipe at 4874'while troubleshooting hydraulic issue with the topdrive.Temporarily bypass the unloader valve to complete the short trip to the shoe.Continue troubleshooting topdrive.Replace the 37 pin Pyle-National cord.Function test topdrive--GOOD.TIH back to bottom.Test tools while filling the pipe--GOOD. Wash last stand to bottom(encountered roughly 20'of fill).Drill 8 1/2"production hole from 6854'to 6917'. Ops Trouble Start lime End lime Dur(hrs) Ops Code Activity Code Status Code Comment 06:00 06:30 0.50 CIRC MUD AF Circ.B/U @ 5652'414GPM 80RPM 1350psi. 06:30 09:30 3.00 TRIP WIPR AF POOH on elevators to 5380'(tight hole @ 5380')pulled 30k over string wt. B/R F/5380'to 5200'. POOH on elevators F/5200'to 5132'(tight hole @ 5132')pulled 30K over string wt. Observed swabing when pulling through tight hole.B/R F/5200'to 4874'. When attempting to latch the hydraulic elevators to the stump the elevators would not lock closed. 09:30 15:30 6.00 CIRC MUD TA MSTD Circulate and work pipe @ 4874'while troubleshoot problem with top drive robotics and wait on top drive hydraulic pump to arrive from town.Circ.w/ 102GPM 216psi. Change hydraulic pump for top drive. Changing pump did not correct the problem.The problem was temporarily corrected by by-passing a shuttle valve in the top drive. 15:30 18:00 2.50 TRIP DP AF B/R F/4874'to 3867'300GPM 850PSI 60RPM. 18:00 20:00 2.00 TRIP DP AF POOH F/3867'to the casing shoe @ 2520'. 20:00 20:30 0.50 SERVIC RIG AF Perform daily rig maintenance&inspection.Service the topdrive.Grease both the crown and blocks. 20:30 00:00 3.50 REPAIR RIG TA MSTD Troubleshoot topdrive hydraulic issue.The 37 pin Pyle-National connection was identified as the source of the problem.A replacement cord was brought out,but before it could be installed the connection body had to be modified to match the original.After installation,the topdrive was thoroughly function tested--GOOD. 00:00 04:00 4.00 TRIP DP AF PJSM.TIH from surface shoe to 6854'(bottom)washing the last stand down.Approximately 20'of fill was encountered.BHI tools were functioned after filling the pipe on the way to bottom--GOOD. 04:00 06:00 2.00 DRILL ROT AF Drill 8 1/2"tangent section from 6854'to 6917'. Parameters:90 rpm,500 gpm, 1950 psi,8-12 klbs WOB, 9-12 kft-Ibs TQ. ART--1.3 hrs.P/U-160 klbs,S/O-75 klbs,ROT-105 klbs.Mud Properties:9.5 ppg&52 cp.24 units B/U gas.Centrifuge is currently down&in need of repair.Technicians have been contacted. www.peloton.com Page 13/25 Report Printed: 5/21/2010 (ii / Marathon )perations Summary Report ARATMpp ®Oil Company Well Name: PAXTON 3 Daily Operations Report Date: 3/19/2010 Job Category: DRILLING _ 24 Hr Summary Drill 497'from 6917'to 7414'(TD).Circulate and condition wellbore.Short trip to 6854'. Inspect and repair topdrive after falling objects observed during backreaming operations.Commence formation pressure testing with BHI TesTrak. 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"tangent section from 6917'to 7185'. Parameters:85 rpm,520 gpm, psi,8-12 klbs WOB, 11-12 kft-Ibs TQ. ART 5.1 hrs.P/U-170 klbs, S/O-85 klbs,ROT- 108 klbs. Dumped 200bbIs 9.5ppg Flopro Mud and bled in 150bbls of 8.5ppg FloproMud Properties:9.3ppg& 50cp. 12:00 20:00 8.00 DRILL ROT AF Drill 8 1/2"tangent section from 7185'to 7414'(TD). Parameters:85 rpm, 520 gpm, 2100 psi, 8-12 klbs WOB, 11-12 kft-lbs TQ. ART 6.4 hrs.P/U- 175 klbs,S/O- 85 klbs,ROT-110 klbs.Mud Properties: 9.4 ppg& 55 cp. No Gain/Loss. Repaired Autoguard on the centrifuge(replaced shear out key and key way on torque limiter on drive shaft). Continue to run centifuge @ 16:00hrs. 20:00 21:00 1.00 CIRC MUD AF Circulate B/U.No increase in cuttings was observed over the shakers. Check for flow--Static. 21:00 22:30 1.50 TRIP WIPR AF Commence short trip from 7414'.Begin backreaming tight hole from 7122' to 6919'with 400 gpm&80 rpm. 22:30 23:30 1.00 REPAIR RIG TA MSTD 3 small objects from the topdrive fell approximately 10 feet to the rig floor. Upon inspection,the objects were identified as components of the pipe handling mechanism.An all-thread stud with jam nut sheared and descended to the floor along with a spring and retainer.Further inspection revealed a second assembly missing.The remaining 10(12 total) assemblies were torqued to spec and safety wired to prevent them from falling in the event of failure. 23:30 00:30 1.00 TRIP WIPR AF Continue to backream from 6919'to 6854'. RIH from 6854'to 7414' completing the short trip.Tight hole was not encountered on the way back to TD. 00:30 01:30 1.00 CIRC MUD AF Circulate B/U.No increase in cuttings was observed over the shakers. Check for flow--Static. 01:30 06:00 4.50 LOG OH AF Commence formation pressure testing with BHI TesTrak while TOH.(3 out of 20 completed). MW 9.3+ppg 53Vis. Report Date: 3/20/2010 Job Category: DRILLING 24 Hr Summary Complete remaining formation pressure tests with BHI TesTrak while TOH,Complete data acquisitions&L/D BHI smart tools,Commence required BOPE testing to 250/2500 psi. Ops Trouble Start Time End Time Dur(hrs) Ops Code Activity Code Status Code Comment 06:00 12:00 6.00 LOG OH AF Cont.formation pressure testing with BHI TesTrak while TOH.(10 out of 20 completed @ 12:00hrs). Hole is in good condition. POOH on elevators.MW 9.4ppg 51 Vis. 12:00 18:00 6.00 LOG OH AF Cont.formation pressure testing with BHI TesTrak while TOH.(18 out of 20 completed @ 18:O0hrs). Hole is in good condition. POOH on elevators.MW 9.4ppg 51 Vis. 18:00 20:00 2.00 LOG OH AF Complete remaining 2 formation pressure tests with BHI TesTrak while TOH to 2400'.Did not encounter any tight hole conditions as POOH on elevators. Mud properties:9.4 ppg&51 cp. 20:00 23:00 r 3.00 TRIP DP AF Blow down topdrive,mud manifold, BPA,and all associated lines.Continue POOH to BHI smart tools(235').SLM deemed no corrections necessary. 23:00 04:30 5.50 TRIP BHA AF Laydown BHI LWD components(MagTrak,SoundTrak,TesTrak,CCN, OnTrak)after acquiring stored log data from each individual tool.Laydown BHI AutoTrak. Bit Grade:0-0-NO-A-X-0-NO-TD 04:30 05:30 1.00 CLEAN RIG AF Rid rig floor of unnecessary tools&equipment. R/D BHI BPA.Wash rig floor of any mud&cuttings. ZOO p V.i4Ft 05:30 06:00 0.50 TEST BOPE AF Commence testing of BOPS and all related components to 250 4564lpsi. s' -- ------ - ------__._------ Report Date: 3/20/2010 Job Category: DRILLING 24 Hr Summary Test BOPE. Free stuck test plug. Install wear bushing. www.peloton.com Page 14/25 Report Printed: 5/21/2010 /----t Oil Mares operations Summary Report ,t,,,,i ® Well Name: PAXTON 3 Ops Trouble Start Time End Time Dur(hrs) Ops Code Activity Code Status Code merit 06:00 12:00 6.00 TEST BOPE AF PJSM. Test 13 5/8"BOPE to 25 /2000psi 5min. Test lower 5"pipe rams, 2 7/8"X 5 1/2"upper variable ra nd annular preventer w/5"test joint. Test CMV 1-12,inner and outer kill line valves,inner manual choke line valve and HCR valve.Test TIW valve, IBOP valve,upper and lower kelly valves on top drive.Test blind rams.Test 2 7/8"X 5 1/2"upper variable rams w/4 1/2"test joint. Test koomey performance.Service leaky HCR valve&achieved acceptable test. 12:00 16:00 4.00 TEST BOPE TA MSBO PJSM. R/D BOP test equipment. Test plug would not release from wellhead.6"of travel up and down. Attempt to work stuck test plug free. Drain and flush stack and inspect top of test plug. Inspect lockdowns. Discuss with Vetco rep. Pull test plug free with 10k with blocks. 16:00 16:30 0.50 RUNPUL WBSH AF Install wear bushing. Adjust drawworks brakes. Move to completion operations @ 16:30 hrs 3/20/2010. Daily Operations Report Date: 3/21/2010 Job Category: DRILLING 24 Hr Summary M/U cleanout assy,RIH to 7414',Circulate&condition wellbore,Drop rabbit,POOH to 600',Continue POOH while L/D HWDP. Ops Trouble Start Time End Time Dur(hrs) Ops Code Activity Code Status Cede Comment 16:30 22:00 5.50 PULD BHA AF M/U 8 1/2"bit&bit sub.RIH w/5"HWDP&5"DP.Wash last stand to bottom encountering approximately 5'of fill. 22:00 00:00 2.00 CIRC MUD AF Circulate&condition wellbore.2 B/U returned to surface without any increase in cuttings observed over the shakers.Check for flow--Static. Pump Dry job&Drop 2 7/8"rabbit.31 units gas at B/U. 00:00 00:30 0.50 BLOWDN EQIP AF Blow down topdrive&mud manifold. 00:30 05:00 4.50 TRIP DP AF POOH from 7414'to 600'without encountering any tight hole conditions. 05:00 06:00 1.00 TRIP DP AF Continue POOH from 600'while laying down HWDP. Report Date: 3/22/2010 Job Category: DRILLING 24 Hr Summary UD 5"HWDP.Retrieve rabbit at the top of the jars.R/U Weatherford casing crew&run 4 1/2"liner.M/U liner hanger assy&RIH with liner to 7414'on 5"DP. Circulate and condition the wellbore while reciprocating the pipe(could not rotate).Prepare for cement job. Ops Trouble Start Time End Time Dur(hrs) Ops Code Activity Code Status Code Comment 06:00 06:30 0.50 PULD BHA AF Cont.POOH and L/D HWDP and Jars. Recovered rabbit on top of jars. UD Bit and bit sub. 06:30 07:30 1.00 RURD CSG AF PJSM. R/U floor to run CSG. C/O to long bales and CSG elevators. Tie back DP tongs and spinners. R/U fillup hose. 07:30 09:30 2.00 RURD CSG AF PJSM. R/U Weatherford CSG tools and Jam system equipment. 09:30 11:30 2.00 RUN CSG AF PJSM. M/U 4 1/2"12.6ppf L-80 Hydril 563 liner and Bakerlok shoe track. Check floats(OK) 11:30 16:00 4.50 RUN CSG AF PJSM with crew coming on tour. Cont.to run 4 1/2"liner. 16:00 16:30 0.50 RUN CSG AF Circ. 1X CSG volume @ 2515'.200GPM 270PSI P/U 45K S/O 30K. 16:30 20:30 4.00 RUN CSG AF Cont.to run 4 1/2"liner. 20:30 21:30 1.00 RURD CSG AF Change out bails and elevators. 21:30 00:00 2.50 RURD CSG AF M/U monobore seal assy,wiper plug,stinger assy,and hanger assy. Mix 5 gals Pal mix and pour into hanger assy.M/U stand of 5"DP and pump through liner tools--GOOD. P/U-70 klbs,S/O-40 klbs, ROT-55 klbs,2-3 kft-lbs TQ. 00:00 02:30 2.50 RUN CSG AF PJSM. RIH with 4 1/2"liner&hanger assy on 5"DP and tag @ 7418'. 02:30 06:00 3.50 CIRC MUD AF Circulate&condition wellbore in preparation for liner cement job while reciprocating the pipe.Attempt to rotate the liner with up to 7.5 kft-lbs TQ without success. Paramerters:325 gpm,510 psi,P/U-112 klbs,S/O-53 klbs.Blow down lines back to BJ cementers. Report Date: 3/23/2010 Job__Category: DRILLING 24 Hr Summary Cement 4 1/2"liner,Back off of liner while attempting emergency release of hanger tool,TOOH,L/D 23 jts 4 1/2"liner,RIH with cement clean out assy and tag fish at 3264',Circulate in preparation for fishing operations. Ops Trouble Start Time End Time Dur(hrs) Ops Code Activity Code Status Code Comment 06:00 06:30 0.50 CIRC MUD AF Circ 4 1/2"liner w/200GPM 390psi 06:30 07:30 1.00 PUMP CMT AF PJSM and JSA for cement job. Pump 10bbls water ahead and test cement lines to 4000psi. Mix and pump 40bbls 10ppg spacer ahead. www.peloton.com Page 15/25 Report Printed: 5/21/2010 M Marathon Jperations Summary Report MARATHON ®Oil Company Well Name: PAXTON 3 Ops Trouble Start Time End Time Dur(hrs) Ops Code Activity Code Status Code Comment 07:30 08:30 1.00 PUMP CMT AF Mix and pump210sxs class"G"cement w/25%bwoc MPA-1,.05%bwoc static free, .29/s oc R-3, 1%bwoc FL-62 and 1gal/100sxs FP-6L, /trOwoc Sodium Metasilicate.To yield 78bbls 12.5ppg slurry. Tail in withl07xs Class"G"cement w/.05%bwoc static free, 1%bwoc Calcium Cloride 1.2% bwoc BA-56,3%bwow Potasium Chloride, .5%bwow EC-1,.4%bwoc CD-32, 1ga1/100sxs FP-6L, .2%bwoc Sodium Metasilicate to yield 226bbls 15.8ppg slurry. Flush cement lines. Reciprocate liner 10'strokes. Could not rotate liner due to high torque. 08:30 09:30 1.00 PUMP CMT AF Drop DP wiper plug and displace with BJ unit. Pump 90bbls 3%viscosified KCL brine followed by 26bbls 9.5ppg mud. Did not bump plug!Displace another.5bbls and still did not bump the plug.Release pressure and check floats OK. CIP@ 09:30 09:30 10:00 0.50 PUMP CMT TA CSOT Emergency release from liner hanger running tool by working left hand torque into string. Maximum 4560ft-lbs and a total of 3 left hand turns. String backed off and immediatly circulated with 250psi anjl-91GPM. 10:00 11:00 1.00 CIRC MUD TA CSOT Circulate string w/180GPM 500psi to 280psi. Circulated 9b0bbls cement to surface. // 11:00 12:00 1.00 PULD EQIP TA CSOT PJSM. L/D Baker cement head and 5"DP pups. 12:00 14:30 2.50 TRIP DP TA CSOT POOH w/5"DP. 14:30 16:00 1.50 PULD EQIP TA CSOT PJSM. L/D Baker liner hanger tools. Hanger did not emergency release. 16:00 19:00 3.00 PULD EQIP TA CSOT PJSM. L/D 23 joints of 4 1/2"Hydril casing. Liner was coated with green /.- cement.Recovered all 23 centralizers. TOF @ 3260'. 19:00 21:00 2.00 CLEAN RIG TA CSOT Rid rig floor and trip tank of cement from L/D operations. Flush BOP&all associated lines.Function BOPs. 21:00 22:00 1.00 BLOWDN EQIP TA CSOT Blowdown topdrive and all associated lines.Stage&strap cement cleanout BHA components. 22:00 00:30 2.50 PULD BHA TA CSOT M/U cement cleanout BHA assy,PJSM.P/U 5"HWDP while RIH. 00:30 02:00 1.50 TRIP DP TA CSOT PJSM.RIH with 5"DP from 701'to 2535'. 02:00 02:30 0.50 CIRC MUD TA CSOT Circulate until contaminated mud cleaned up&could be retained instead of sent overboard. 02:30 04:00 1.50 CIRC MUD TA CSOT Pull into shoe while waiting for empty disposal containers.Transfer fluid from Hanson tank to active. 04:00 05:30 1.50 TRIP DP TA CSOT RIH.Wash and rotate from 2535'to 3264'.Tag fish at 3264'. Parameters: 350 gpm,400 psi, 10-15 rpm,0-3 klbs WOB,5-8 kft-lbs TQ. P/U-70 klbs, S/O-35 klbs,ROT-57 klbs. 05:30 06:00 0.50 CIRC MUD TA CSOT Circulate&condition open wellbore above fish clearing it of contaminated mud and preparing for upcoming fishing operations. Daily Operations Report Date: 3/24/2010 Job Category: DRILLING 24 Hr Summary - - - -----------------__- - --POOH w/cleanout assy. Circ.at CSG shoe. POOH to 701'. RIH to 3232'. Displace mud. POOH L/D BHA. M/U fishing BHA#1. Wash over top 9'of fish. CBU. POOH and L/D fishing BHA#1. Ops Trouble Start lime End Time Dur(hrs) Ops Code Activity Code Status Code Comment 06:00 07:30 1.50 TRIP DP TA CSOT PJSM. POOH F/3236'to 2473'. Tight spot @ 2905'. B/R F/2910'to 2900'. 07:30 08:00 0.50 CIRC MUD TA CSOT Circ.@ 2473'. 08:00 09:30 1.50 FLOW CHEK TA CSOT Flow check. Well static. POOH F/2473'to 701. 09:30 10:30 1.00 CLEAN RIG TA CSOT Clean and organize rig floor. 10:30 11:30 1.00 TRIP DP TA CSOT PJSM. RIH F/701'to 2473'. 11:30 12:30 1.00 CIRC MUD TA CSOT Fill drill pipe and check flow. Well static. 12:30 13:00 0.50 TRIP DP TA CSOT PJSM. RIH F/2473'to 3232'. No tight spots. Hole in good condition. 13:00 14:00 1.00 CIRC MUD TA CSOT Pump 20bbl water spacer ahead and displace cement contaminated mud w/9.5ppg flopromud @ 425GPM. 14:00 17:30 3.50 TRIP DP TA CSOT POOH and L/D jars,8.5"bit and 2-8 3/8"stabs. No tight spots hole in good condition. 17:30 18:00 0.50 TRIP BHA TA CSOT Stage fishing tools. 18:00 20:30 2.50 TRIP DP TA CSOT PJSM. P/U fishing BHA#1 and RIH to 2590'. 20:30 23:00 2.50 TRIP DP TA CSOT Wash down to fish from 2590'to 3264'. 23:00 01:30 2.50 WSHOVR FISH TA CSOT Wash over top of liner&clean out cement around 4 1/2"liner from 3264'to 3273'. 20RPM,313GPM,250 psi, TQ 2-6K FT-LB,WOB 2-5K. P/U 67K S/0 37K ROT 52K. www.peloton.com Page 16/25 Report Printed: 5/21/2010 Marathon )perations Summary Report MARATHON Oil Company Well Name: PAXTON 3 Ops Trouble Start Time End Time _ Dur(hrs) Ops Code Activity Code Status Code Comment 01:30 02:00 0.50 CIRC MUD TA CSOT Circ. B/U 315GPM 280PS1. 02:00 04:30 2.50 TRIP DP TA CSOT POOH w/DP to 661'. No tight spots hole in good condition. 04:30 06:00 1.50 TRIP BHA TA CSOT POOH w/HWDP and fishing BHA#1. Shoe of washpipe in good condition with no unusual wear or damage. Daily Operations Report Date: 3/25/2010 Job Category: DRILLING 24 Hr Summary Washhover and mill fish. POOH. R/U casing tools. Run 4.5"liner with overshot and grapple for tieback. Ops Trouble Start lime End Time Our(hrs) Ops Code Activity Code Status Code Comment 06:00 06:30 0.50 PULD BHA TA I CSOT M/U wash pipe and wash shoe. 06:30 07:00 0.50 SERVIC EQIP TA CSOT Service carrier and crown. 07:00 07:30 0.50 PULD BHA TA CSOT L/D 8 1/8"wash pipe and mill assy. 07:30 08:00 0.50 SERVIC RIG TA CSOT PJSM. Service top drive and blocks. 08:00 09:00 1.00 SLPCUT DLIN TA CSOT PJSM. Slip drilling line. 09:00 11:00 2.00 PULD BHA TA CSOT PJSM. P/U 8 1/8"wash pipe and mill assy 11:00 12:00 1.00 TRIP DP TA CSOT Cont.to RIH w/5"DP to 2505'. 12:00 13:30 1.50 TRIP DP TA CSOT PJSM. Cont.to RIH to 2820'. Wash F/2820'to 3272'. Tag TOF w/Ext mill @ 3264'. 13:30 19:00 5.50 MILL FISH TA CSOT Washover fish F/3273'to 3279'.Mill TOF F/3264'to 3265. Dress OD of fish F/3265'to 3270'. Dress ID of fish F/3265'to 3268'. 19:00 21:30 2.50 TRIP DP TA CSOT PJSM. Flow check.Pump dry job. Drop 3"rabbit. POOH w/5"DP. 21:30 22:30 1.00 PULD BHA TA CSOT PJSM. Cont.POOH and L/D 5"HWDP. Recovered 3"rabbit above jars. 22:30 00:00 1.50 TRIP DP TA CSOT PJSM. POOH L/D fishing BHA#2. Wear on mills indicated that we were over fish and have milled and dressed fish as planned. Recovered a half gallon of metal from the junk basket. 00:00 02:00 2.00 RURD CSG TA CSOT PJSM. C/O bales and elevators for running casing. R/U Weatherford casing tools. 02:00 03:00 1.00 RUN CSG TA CSOT PJSM. M/U 8 1/8"cut lip guide w/4.50 grapple,4.5"ES cemeter. Bakerlok connections. 03:00 05:30 2.50 RUN CSG TA CSOT Run 23 joints 4.5"12.6ppf L-80 Hydril 563 liner. Torqued Hydrill to 8K FT-LB. 05:30 06:00 0.50 RUN CSG TA CSOT C/O bales and elevators to run 5"DP. Report Date: 3/26/2010 Job Category: DRILLING 24 Hr Summary Cont.to run liner. Overshot lower section of liner and test seal on packoff. Cement upper section of liner. Polish top of liner. Run liner top packer. Ops Trouble Start lime End Time Dur(hrs) Ops Code Activity Code Status Code Comment 06:00 06:30 0.50 RURD CSG TA CSOT Finished C/O to short bales and DP elevators. R/U floor to run DP. 06:30 08:30 2.00 PULD EQIP TA CSOT M/U Baker 9 5/8"X 4 1/2"liner hanger tools. LID Weatherford tongs. 08:30 11:00 2.50 TRIP DP TA CSOT Circ.and check liner hanger tools. RIH F/1015'to 3233'. 11:00 12:00 1.00 PULD EQIP TA CSOT Circ.while M/U Baker TD cement head and a 10'-5"DP pup. 12:00 12:30 0.50 ENGAGE FISH TA CSOT PJSM. Engage top of liner @ 3265'. Swallow top of previously run 4.5" liner with overshot. Test seals on overshot to 1100psi/5min OK. Pressure up to 1900psi and open Halliburton ES cementer(DV collar). 12:30 13:30 1.00 CIRC MUD TA CSOT Circ.upper section of 4 1/2"liner w/350gpm 750psi. PJSM with all personnel for cementing the 4 1/2"liner. 13:30 16:00 2.50 PUMP CMT TA CSOT PJSM. Pump 5bbls water ahead. Te ce ent lines to 4200psi. Pump 40bbls 1 Oppg spacer. Mix and pum 305 xs Class"G"cement w/1%A-7, 1.2%BA-56,3%KCL, .5%EC-1, .4° 32,.2%A-2, .05%Static free, 1GPHS FP-6L to yield 65bbls 15.8ppg slurry. Wash up cement lines. Displace with 40bbls 3%KCL viscosified brine and 15bbls 9.3 ppg Flopro mud. Bumped plug w/1500psi 1000psi over last displacement pressure. CIP @ 15:30hrs. Bleed off pressure and check that DV collar has closed OK. Increse pressure to 3500psi to release liner running tool. Release pressure and line up with rig pump and pressure up to 500psi. Pull running tool free from hanger and circulate. Circulated 40bbls of spacer and a trace of cement to surface. 16:00 19:30 3.50 PULD DP TA CSOT PJSM. L/D Baker TD cement head. Blow down cement lines.While POOH L/D 5"DP. L/D liner hanger running tool. 19:30 20:30 1.00 RURD OTHR TA CSOT P/U Baker TD cement head. Break connections on head and B/O pup joint. LID nd pup joint. www.peloton.com Page 17/25 Report Printed: 5/21/2010 / . \ )perations Summary Report ,,AM ®pjjCpryryy Well Name: PAXTON 3 Ops Trouble Start Time End Time Dur(hrs) Ops Code Activity Code Status Code Comment 20:30 21:30 1.00 TRIP DP AF P/U Baker Fluted mill w/top dress mill and RIH. Tag top of liner @ 2262'. 21:30 22:00 0.50 CIRC MUD AF Polish liner top 180GPM 100psi 30 RPM. 22:00 01:30 3.50 TRIP DP AF POOH and L/D 5"DP. Inspect and L/D polish mill. 01:30 02:00 0.50 CLEAN RIG AF Clean and organize rig floor. 02:00 -04:00 2.00 TRIP TOOL AF P/U ZXP liner top packer. Pump through packer. RIH to 2250. 04:00 05:00 1.00 CLEAN RIG AF Build brine. Clean pipe rack. Repair mix pump soft start. Clean and organize rig floor. 05:00 06:00 1.00 SETREL PKR AF Space out DP and M/U side entry sub for setting ZXP. , Daily Operations ---- -- -- - --- - ---Report Date: 3/27/2010 Job Category: DRILLING 24 Hr Summary -- - -.-.._-- - -- --Set 4.5"X 9 5/8"ZXP. POOH with running tool UD DP. Run production TBG. I Ops ; Trouble Start Time End Time Dur(hrs) Ops Code Activity Code Status ': Code Comment 06:00 07:30 1.50 SETREL PKR AF PJSM. Space out string for setting ZXP packer. Line up BJ and set Packer w/2500psi. Cont.to pressure up to 3000psi and hold for 5min. Attempt to shear ball seat with 4900psi. Ball seat did not shear. Make several attempt to shear ball seat with no success. 07:30 08:00 _ 0.50 SETREL PKR AF Release running tool from packer. 08:00 08:30 0.50 TRIP DP AF POOH to 2160'and attempt to shear ball seat without success. 08:30 09:00 0.50 RURD OTHR AF R/D side entry pump sub and blow down top drive. 09:00 12:00 3.00 PULD DP AF PJSM. POOH(wet)and L/D 5"DP and running tool. 12:00 13:00 1.00 TEST CSG AF PJSM. Test CSG/Liner to 1500psi/30min. 13:00 14:30 1.50 RUNPUL WBSH AF PJSM. Pull wear bushing. Install Vetco 11"X 7"bushing. Test run 11"X 4 1/2"tubing hanger and L/D. M/U 4 1/2"IBT X 4 1/2"IF X/O to floor valve. 14:30 17:30 3.00 RURD OTHR AF R/U long bales and elevator for running 4 1/2"tubing. 17:30 23:00 5.50 RUNPUL TBG 'AF PJSM. P/U TBG seal assy. RIH w/4 1/2"12.6PPF L-80 IBT-M TBG. Install CIM. Band injection line w/3 bands/jnt. R/U circulating line.Land out seals in PBR for space out. 23:00 00:00 1.00 RUNPUL TBG AF Install 4.0'pup joint below last full joint of TBG. 00:00 01:00 1.00 RUNPUL TBG AF PJSM. M/U hanger and landing joint. R/U circulating hose. Terminate chemical injection line in 11"X 4 1/2"TBG hanger.L/D Weatherford TBG tongs. R/D Pollard banding equipment. 01:00 02:00 1.00 CIRC CFLD AF Displace well to 8.5ppg 3%KCL brine w/Conqor 303 in the annulus. 02:00 02:30 0.50 RUNPUL TBG AF Land out TBG hanger in wellhead. DN 35K UP 40K. 02:30 04:00 1.50 TEST CSG AF Test TBG to 500psi/10min OK and TBG X CSG annulus to 1500psi/10min OK. Test hanger seals to 5000psi/10min OK. 04:00 04:30 0.50 RUNPUL TBG AF Release landing joint from TBG hanger and L/D. Set BPV. 04:30 05:00 0.50 RURD CSG AF L/D elevators and slips. 05:00 06:00 1.00 CLEAN TANK AF Flush all lines. Clean pits. Report Date: 3/28/2010 Job Category: DRILLING 24 Hr Summary Flush and blow down all mud lines. N/D BOP stack. N/U X-mas tree and test. R/D rig. Ops Trouble Start Time End lime Dur(hrs) Ops Code Activity Code Status Code Comment 06:00 07:00 1.00 CLEAN RIG AF Pickel#3 mud pump. Flush out degasser,desilter,and overhead lines. Blow down all lines. UD long bales. 07:00 12:00 5.00 NUND BOPE AF PJSM. N/D BOP stack. R/D mouse hole,drip pan,choke line. Pickel pumps#1 and#2. Unplug#3 mud pump module. Change oil in camp generator. Prep#3 mud pump for move. Load trailers. R/D panic line. Open BOP ram doors and chip and rinse out hard cement. Remove VBR's. Top seal on VBR's damaged. 12:00 15:30 3.50 NUND BOPE AF PJSM. Close ram doors. Remove check valve from kill line of BOP. Install bore plug. N/D stack, N/D 13 5/8"5M X 11"5M DSA,and N/D 24"13 5/8'/ 5M spacer spool. R/D koomey lines. Load out stack. Clean pits. 15:30 18:30 3.00 NUND TREE AF PJSM. N/U X-mas tree. Test void to 5000psi/10min OK. Pull BPV and install TWC. Test tree to 5000psi/10min OK. Pull TWC and install BPV. www.peloton.com Page 18/25 Report Printed: 5/21/2010 -M Marathon )perations Summary Report Mnl ®piny Well Name: PAXTON 3 Ops Trouble Start lime End lime Dur(hrs) Ops Code Activity Code Status Code Comment 18:30 00:00 5.50 RURD RIG AF PJSM. R/D kill and choke hoses,mud manifold,manual DP tongs,and DP spinners. LID handling tools,subs,and sub rack. R/D mud pump pop off lines,dresser sleeves and choke lines to poor boy degasser. PJSM. R/D top drive service loop and kelly hose,torque bushing and top drive. Clean hansen tank and poor boy degasser. R/D flowline ext,shock hoses,mud line, and cement line on derrick. Load trailer and palitize rig equipment. 00:00 06:00 6.00 RURD RIG AF PJSM. R/D sub hydraulic cylinder tarps,load trailers,shut down boiler and blow down lines. Lower poor boy degasser. R/D torque tube,turnbuckles strongback and T-bar. Unplug cooling tower and centrifuge house. Pickle test pump,remove scope hydraulic cylinder tarps,and R/D trip tank manual gauge. R/D carier tarp and bow supports. R/D derrick board. Daily Operations Report Date: 3/29/2010 Job Category: DRILLING_ _ _ 24 Hr Summary R/D Rig Ops Trouble Start lime End Time Dur(hrs) Ops Code Activity Code Status Code Comment 06:00 12:00 6.00 RURD RIG AF PJSM. UD beaver slide. R/D BOP connex stairs. Blow down water lines,. R/D cuttings tank.Move Epoch and Baker shacks. Unplug pits and pump room,dog house and choke house,water tank module, and BOP connex. Prep BOP connex and load out. R/D water and water return lines. R/D steam and steam return lines. Scope down derrick. 12:00 00:00 12.00 RURD RIG AF PJSM. Crane back wind walls and landing DS stairs. PJSM. Prep and lower derrick. Unplug wires for dog house,carrier and generator house. Crane dog house and choke house stairs and landings. Crane down wind walls,flow line,panic line,centrifuge house,fuel tank,and derrick house. Move MI and DD trailer. Offload fuel. Offload boiler water. Prep carrier for move. Load out bottom centrifuge connex. Move carrier off of the mud boat. R/D hand rails for generator house,boiler house,pits and pump room. R/D cellar work platforms and trip tank. Split pits and pump room. Load out trailers. Flip mud boat ramp. 00:00 06:00 6.00 RURD RIG AF PJSM. Prep sub base to lower, fold up sub wings, clean up mud boat, organize yard,prep boiler house and water tank module to move. Work on loader linkage,load trailers,prep weld shop and mechanics shop. Release rig to maintenance @ 06:00 hrs 3/29/2010 Report Date: 4/13/2010 Job Category: COMPLETION 24 Hr Summary — — Remove back pressure valve,rig up coil unit,perform BOP test,waived witness by state-Jeff Jones AOGCC. Ops Trouble Start lime End Time Dur(hrs) Ops Code Activity Code Status Code Comment 07:30 08:00 0.50 SAFETY MTG AF Arrived location,obtained safe work permit from Susan Dionne pad operator. PJSM-Discussed active gas pad rules,reviewed ESD location and emergency contact information/numbers. Assigned designated driver for major medical emergencies. Reinforced Stop The Job obligations and emphasized not rushing the RU process in exchange for safety. Reviewed slips,trips,and falls. Talked about proper duck pond placement and immediate reporting of any HES issues. 08:00 08:30 _ 0.50 RUNPUL VLVE AF _Remove tree cap and pull back pressure valve. 08:30 12:30 4.00 RURD COIL AF Spot coiled tubing reel and injector head. Test reel functions and check stripper rubber. Mix 150 bbls of 3%KCI and friction reducer with vac.truck, transfer to 500 bbl Rain-for-Rent tank. Stabbed coil into injector head, locked down coil guides. Tied flow cross into pump truck and flow back tank. ----------- -- - ---- 12:30 16:00 3.50 TEST BOPE AF Function test coil BOP's. BOP test inspection waived by Jeff Jones AOGCC. Bled off low pressure blind ram test to repair leaking flow cross. Shell test flow back iron,manifold,and all inline valves with low pressure and saw no leaks. Good low/high test on shear rams and associated iron. Bled off pressure and installed test bar for slip/ram test. Good low test but started leaking on high test. Replaced test bar,tested high with no leaks. 16:00 16:30 0.50 SECURE WELL AF Secured location and shut down for evening. www.peloton.com Page 19/25 Report Printed: 5/21/2010 M IVler�d�ort operations Summary Report NuWATH ®OiICOmpeny Well Name: PAXTON 3 Daily Operations Report Date: 4/14/2010 Job Categooryr. COMPLETION 24 Hr Summary Flanged up lubricator sections. General housekeeping. Ops Trouble Start Time End Time Dur(hrs) Ops Code Activity Code Status Code Comment 07:30 08:00 0.50 SAFETY MTG AF Arrived location,obtained safe work permit from Susan Dionne pad operator. PJSM-Discussed active gas pad rules,reviewed ESD location. Assigned designated driver for medical emergencies. Reinforced Stop The Job obligations and emphasized not rushing the RU process while working in high wind situation. Reviewed slips,trips,and falls. Talked about immediate reporting of any HES issues. Winds gusting to 30 mph,unsafe RU conditions. 08:00 11:00 3.00 WAITON WTHR AF Flanged up lubricator sections,general housekeeping. Continued to wait on weather. 11:00 11:30 0.50 SECURE WELL AF Shut down for the day,secure location. Report Date: 4/15/2010 Job Category: COMPLETION ----.----------- 24 Hr Summary Milled through ES cementer,continued to PBTD @ 7218 ft.CTD. POOH w/coil and circulate through circ.sub at max.rate to clean hole. Ops Trouble Start Time End Time Dur(hrs) Ops Code Activity Code Status Code Comment 07:30 08:00 0.50 SAFETY MTG TA MDCE Arrived location,obtained safe work permit from Susan Dionne pad operator. PJSM-Discussed active gas pad rules,reviewed ESD location. Assigned designated driver for medical emergencies. Reinforced Stop The Job obligations. Pointed out hazards associated with working in snowy conditions. Reviewed slips,trips,and falls. Talked about immediate reporting of any HES issues. 5-6 inches of new snow on pad,emphasized proper foot placement to avoid slipping on pad liner. 08:00 10:00 2.00 RURD COIL TA MDCE P/U injector and flange lubricator sections together. Prep end of coil for connector. 10:00 12:00 2.00 PULD BHA TA MDCE Install coil connector,test pull to 10k lbs. Pressure connector to 300 psi low and 3500 psi high for 5 minutes respectively. MU mill/motor BHA. Stab injector and secure with cable guidelines to crane and coil unit. Shell test motor and pump 1.5 bbls through BHA. 12:00 13:30 1.50 MILL PLUG TA MDCE RIH with motor/mill,pull test @ 1500 ft.and 3000 ft with pumps rolling at 0.5 bpm. Recalibrate digital cab gauge to mechanical coil depth gauge. Tag hard @ 3256'CTD,as expected from liner pipe tally from rig installation. Mill approximately 1 foot to 3257'CTD. Small bits of rubber seen in returns. 13:30 14:30 1.00 MILL PLUG TA MDCE Shut down pumps to bring on inline fluid filter. Not enough head to feed filter. Use vac.truck to pull from return tank and push fluid through filter to supply tank. Keep coil moving upward while waiting on filter integration. 14:30 16:30 2.00 MILL PLUG TA MDCE Continue milling liner wiper plug. Pump stalled several times,made approx. 3 ft.of progress total to 3259'CTD. Decide to make sweep to push cuttings uphole,cement and aluminum in returns. RBIH and made no progress, decide to POOH and check mill. 16:30 17:30 1.00 RUNPUL COIL TA MDCE POOH w/coil while circulating at 2 bpm maximum through motor. 17:30 18:00 0.50 INSPCT BHA TA MDCE ND injector and inspect motor/mill. Mill in excellent condition,no unusual marks or indication of milling steel/casing. 18:00 21:30 3.50 MILL PLUG TA MDCE RIH w/coil and tag top of plug/cement @ 3275'CTD. Stall motor several times and continue making hole. Through cementer and found solid cement to 3293'CTD. Short trip to 500 ft. 21:30 02:30 5.00 MILL PLUG TA MDCE Trip back to 3293'CTD and proceed slowly while milling cement stringers to 3612'. Mill cement to 4605'and then cycle coil in hole with minimal restrictions. Tag bottom @ 7218'CTD. 02:30 04:00 1.50 CIRC CFLD TA MDCE Circulate bottoms up and drop ball to shear circ.sub. POOH while circulating at max.rate to lift cuttings. Tight spot noted at 3290',pulled 10k over. 04:00 05:00 1.00 CIRC CFLD TA MDCE Shut down pumps with coil at 1500 ft. Turn on nitrogen and displace 3% KCI from coil into flow back tank. Continue POOH w/coil to surface,shut master valve. 05:00 05:30 0.50 RURD COIL TA MDCE Rig down injector,break out coil BHA,unflange lubricator sections and chain back. 05:30 06:00 0.50 SECURE WELL TA MDCE Secure location. www.peloton.com Page 20/25 Report Printed: 5/21/2010 (ICOli/ Marathon „ 1perations Summary Report Oil Well Name: PAXTON 3 Daily Operations Report Date: 4/1.6/2010 Job Category: COMPLETION 24 Hr Summary Run CBL,dummy run w/3.75"OD by 10 ft.long patch section,3.715"gauge ring/junk basket run to TD @ 7166'ELD. Ops Trouble Start Time End Time Dur(hrs) Ops Code Activity Code Status Code Comment 07:30 08:00 0.50 SAFETY MTG AF Arrived location,obtained safe work permit from Susan Dionne pad operator. PJSM-Discussed active gas pad rules. Assigned designated driver for medical emergencies. Reinforced Stop The Job obligations. Reviewed slips,trips,and falls. Went through pinch points and proper hand placement during e-line RU. Talked about immediate reporting of any HES issues. Emphasized proper foot placement to avoid slipping on pad liner. 08:00 10:00 2.00 RURD ELEC AF RU e-line. Function test Welltec tractor and set-up voltage/current control panel inside Expro truck. M/U centralized CBL,CCL and Welltec tractor. 10:00 12:30 2.50 RUNPUL ELEC AF RIH w/e-line until bha wouldn't fall on it's own @ 1700'. Activated Welltec tractor while maintaing 100 lbs.pull w/e-line unit at surface. Tractored to 2300'and tractor stalled out,at ID change in tie back area. Restarted tractor and worked down to 3290'w/intermittent stalls(likely pushing debris based on tractor operating current.) Stopped and started tractor 3 times to work through tight spot at 3290'. Continued to 4700'with multiple stalls, tractor acts like it's pushing debris. Turned off tractor @ 4700'while RIH and bha now able to fall on its own in semi-vertical hole section. Traveled to 7166'and designated depth as PBTD. 12:30 15:00 2.50 LOG CSG AF Correlated CCL/GR to open hole logs. Run CBL to TOL. No issues or tight spots noticed. Poor cement above 6300'. 15:00 16:00 1.00 RUNPUL ELEC AF POOH and lay down bha. Collected 1 cup of metal shavings from OD of CCL tool. Cuttings look like they came from liner repair milling operations performed by the drilling rig. Tractor wheels showed light wear and dried cement was visible in the traction grooves. 16:00 16:30 0.50 PULD BHA AF M/U 3.75"OD by 10 ft.long dummy casing patch w/jars and Welltec tractor. 16:30 17:30 1.00 RUNPUL ELEC AF RIH w/electric line to approx. 1650 ft,took weight and activated Welltec tractor. Tractored to 2118'and stopped abruptly. Tried several times to work past 2118'w/no success. POOH. 17:30 18:00 0.50 PULD BHA AF M/U 3.715"OD gauge ring and junk basket w/Welltec tractor and jars. 18:00 20:00 2.00 RUNPUL ELEC AF RIH w/gauge ring junk basket,tractor from 1700 ft.to 4700 ft.with no stalls or issues. Ran to PBTD @ 7166. POOH and saw no tight spots or restrictions. 20:00 20:15 0.25 PULD BHA AF LD junk basket and gauge ring. Recovered fingertip size chunk of brass. 20:15 20:45 0.50 RURD ELEC AF RD electric line and inspect Welltec tractors. Tractor wheels worn but in good operating condition. 20:45 21:00 0.25 SECURE WELL AF Secure location for evening. Report Date: 4/17/2010 Job Category: COMPLETION 24 Hr Summary Clean out trip to TD @ 7217'. Reverse well over to N2. Ops Trouble Start Time End Time Dur(hrs) Ops Code Activity Code Status Code Continent 07:30 08:00 0.50 SAFETY MTG AF Arrived location,obtained safe work permit from Susan Dionne pad operator. PJSM-Discussed active gas pad rules. Assigned designated driver for medical emergencies. Reinforced Stop The Job obligations. Reviewed slips,trips,and falls. Went through pinch points and proper hand placement during coiled tubing RU. Talked about immediate reporting of any HES issues. Reviewed proper nitrogen handling practices. 08:00 08:30 0.50 TEST CSG TA MDCE Mix 85 bbls 3%KCI with vac truck for coil clean out,add friction reducer. Fill well with 25 bbls 3%KCI, Pressure test 4-1/2"casing to 1500 psi for 10 minutes,test successful. 08:30 10:30 2.00 RURD COIL TA MDCE RU lubricator and install coil connector. Pull test connector with 12,000 lbs. Fill coil w/28 bbls 3%KCI and pressure test connector to 4000 psi. 10:30 11:00 0.50 PULD BHA TA MDCE M/U 3.80"OD 5 blade mill with Opti-cut and Extreme motor. 11:00 11:30 0.50 RURD COIL TA MDCE Stab injector,secure to coil reel and crane base. Function test reel controls and check all circulating lines. www.peloton.com Page 21/25 Report Printed: 5/21/2010 M Marathon Jperations Summary Report Maaamot ®OilCompany Well Name: PAXTON 3 Ops Trouble Start Time End Time Dur(hrs) Ops Code Activity Code Status Code Comment 11:30 18:30 7.00 RUNPUL COIL TA MDCE RIH w/coil to 2000 ft.with pumps off,no indication of tight spots. Start circulating at 2 BPM and work down to 4700 ft. Casing looks good,wiper run back to 1000 ft.to clean hole. RBIH with no pumps and work slowly through liner tie back(2300 ft.)and stage cementer(3260 ft)areas,no ledges or tight spots noticed. Turn on pumps at 2 BPM and work to bottom at 7217',smooth trip to bottom. Drop ball and open circ.sub. Pump max rate(2.58 bpm)and work back to surface to clean hole. 18:30 19:30 1.00 PULD BHA AF RID injector,lay down motor/mill bha. Install 3"OD bull nose jet nozzle with 1"ID. Stab injector and secure. Shell test surface equipment and 4-1/2" casing to 3000 psi for 5 minutes,test OK. Strap tanks to prepare for N2 reversing operations. 19:30 23:00 3.50 JET N2 AF RIH and start N2 rate @ 500 SCFM,stop @ 5000'and increase N2 to 1200 SCFM. Held coil at same depth until 90 bbls 3%KCI were returned at surface. RIH @ 100 fpm while pumping 500 SCFM and stop at 6150'. Increase N2 to 1200 SCFM until returns were seen at surface. Decrease N2 to 500 SCFM and work coil to 7185'. Increase N2 to 1200 SCFM and continue until entire wellbore evacuated of water,strap tanks and verify calculated displacement. Shut down N2, POOH. 23:00 23:30 0.50 RURD COIL AF Bleed down coil and wellhead. Leave 1450 psi N2 pressure trapped on casing below master valve. RD injector and secure to wellhead and coil unit. -- ------ -- --------- — ----------_..__------- 23:30 00:00 0.50 SECURE WELL AF Secure location and check flow lines. Shut down for evening. Daily Operations Report Date: 4/18/201.0 Job Category: COMPLETION 24 Hr Summary Run 3.75"OD by 2.75'long patch dummy with primary and backup Welltec tractors,stopped at 2059'and could not work past that depth. Successfully run 10 ft.3-1/8"dummy gun to 6800', 100 ft.below lowermost planned perforations. Ops Trouble Start Time End Time Dur(hrs) Ops Code Activity Code Status Code Comment 07:30 08:00 0.50 SAFETY MTG AF Arrived location,obtained safe work permit from Susan Dionne pad operator. PJSM-Discussed active gas pad rules. Assigned designated driver for medical emergencies. Reinforced Stop The Job obligations. Reviewed slips,trips,and falls. Went through pinch points and proper hand placement during e-line lubricator RU. Talked about immediate reporting of any HES issues. Placed special focus on crane operations during picks and lift. 08:00 09:00 1.00 RURD OTHR AF ND coiled tubing BOP's and NU e-line adapter for 5"5k lubricator. 09:00 10:30 1.50 RURD ELEC AF Screw together lubricator sections and hang shieves. MU Welltec tractor and 3.75"OD by 2.75'long dummy patch section. Stab lubricator and test to 2000 psi. 10:30 11:30 1.00 RUNPUL ELEC AF RIH w/a-line,tractor off. Set down @ 1475 and activated tractor. Pushed bha to 2059 and tractor stopped. P/U 50 and restarted tractor,stopped again at 2059,definite restriction. Attempted to work past 2059 several times with no success. Pull tested the tractor uphole and saw 350-400 lbs. pull force. Possible that tractor is slipping or motor has weakened. Decide to try backup tractor and rerun the dummy patch bha. POOH. 11:30 12:00 0.50 PULD BHA AF Bleed N2 off surface equpiment,break out lubricator.Swap over to back up Welltec tractor,test same. 12:00 13:00 1.00 RUNPUL ELEC AF RIH w/a-line and backup tractor. Set down @ 1500'and activated tractor. Pushed bha to 2059 and tractor stopped. P/U 50 and restarted tractor, stopped again at 2059,definite restriction. Attempted to work past 2059 several times with no success,same results as first run w/primary tractor. POOH. 13:00 14:00 1.00 PULD BHA AF Bleed down N2 pressure on surface equipment. Break out lubricator Lay down tractor and patch dummy. MU 3-1/8"x 10 ft.dummy gum to tractor and jars. Stab lubricator and test same. 14:00 17:00 3.00 RUNPUL ELEC AF RIH with 3-1/8"dummy gun and tractor,set down at 1608'. Activate tractor and RIH past liner tie back(2300')and stage cementer(3260')with no issues. Stall out tractor 3-4 times in horizontal section,restart tractor and run to 4700 ft.without seeing any restrictions or tight spots. Turn off tractor and RIH to 6800 ft.without difficulty, POOH. www.peloton.com Page 22/25 Report Printed: 5/21/2010 ISM-- Marathon 1perations Summary Report ®Oil Company Well Name: PAXTON 3 Ops Trouble Start Time End Time Dur(hrs) Ops Code Activity Code Status Code Comment 17:00 17:30 0.50 RURD ELEC AF Bleed down N2,break out lubricator,lay down bha. Secure location for evening. Daily Operations Report Date: 4/19/2010 Job Category: COMPLETION _ 24 Hr Summary Perforate Stage 1,6708-6715 and 6722-6730 together in first run,6432-6452 second run. Cleaned up well and turned over to facilities. Ops Trouble Start Time End Time Our(hrs) Ops Code Activity Code Status Code Comment 07:30 08:00 0.50 SAFETY MTG AF Arrived location,obtained safe work permit from Susan Dionne pad operator. PJSM-Discussed active gas pad rules. Assigned designated driver for medical emergencies. Reinforced Stop The Job obligations. Reviewed slips,trips,and falls around wellhead area. Went through pinch points and proper hand placement during e-line lubricator RU. Talked about immediate reporting of any HES issues. Placed special focus on crane operations during picks and lift. Reviewed perforating safety and radio silence during arming. 08:00 08:30 0.50 PULD BHA AF M/U Welltec tractor to CCL sub,notice that sub is shouldering before complete o-ring engagement. Decide to turn down adapter sub at machine shop. 08:30 11:30 3.00 WAITON EQIP TA MSOT Waiting on CCL adapter sub to be turned down at machine shop. 11:30 13:00 1.50 RURD ELEC AF MU tools and hot check for explosives operations. PU lubricator with tractor,CCL,WPC,shock absorber and 20 ft.3-1/8"(20 ft.)perf.gun inside prior to lift. Pressure test lubricator to 2000 psi. 1450 psi on wellhead prior to RIH. 13:00 14:30 1.50 RUNPUL ELEC AF RIH to 1730'and start Welltec tractor. Power through horizontal section, shut down tractor at 4775'and run to 6800'using gravity. 14:30 15:00 0.50 PERF TBG AF Correlate to short joint located @ 6396-6416'. Bleed well down to 1000 psi at surface. Set into position at 6700'CCL and fire guns. Noticed drop in line weight and small pressure gauge response at surface. Perforated interval @ 6708-6715'and 6722-6730'. Surface gauge rose from 1000 psi to 1100 psi in 45 minutes. 15:00 16:00 1.00 RUNPUL ELEC AF POOH w/guns,no overpull noticed in any part of the hole on TOOH. 16:00 17:00 1.00 PULD BHA AF Lay down 3-1/8"guns. Guns were dry and all shots fired. Noticed one gun carrier had split over a 3-4 foot section and decided to reload guns with 4 spf density instead of 6 spf. Redress tractor and inspect perforating BHA. 17:00 17:30 0.50 RURD ELEC AF PU lubricator with tractor,CCL,WPC,shock absorber and 20 ft.3-1/8"(20 ft.)perf.gun inside prior to lift. Pressure test lubricator to 2000 psi. 1230 psi on wellhead prior to RIH. -.-- ---- --- — —--------------- - -----.-_.___...-..- 17:30 19:30 2.00 RUNPUL ELEC AF RIH to 1710'and start Welltec tractor. Power through horizontal section, shut down tractor at 4550'and run to 6600'using gravity. 19:30 20:00 0.50 PERF TBG AF Correlate to short joint located @ 6396-6416'. Drop down and bleed well to 1000 psi at surface. Pull into position at 6424'CCL depth and fire guns. Good indication that guns fired,pressure gauge response noticed at surface. Perforated interval @ 6432-6452'. Surface gauge rose from 1000 psi to 1230 psi in 30 minutes. 20:00 21:00 1.00 RUNPUL ELEC AF POOH w/guns,no overpull noticed in any part of the hole on TOOH. Lay down guns,all shots fired and guns were dry. 21:00 22:30 1.50 FLOW BACK AF Open up well to gas buster and flow back,held pressure steady at 775 psi surface. Flowed until well cleaned up and gas was to surface. No water returned during flowback operations. 22:30 06:00 7.50 FLOW TEST AF Turn well over to facilites and flow test well. Initial flow rate of 2.81 MM @ 740 psi WHP. Continue flow test and add compression if necessary. Report Date: 4/20/2010 Job Category: COMPLETION 24 Hr Summary Flowing well to facilities Ops Trouble Start Time End Time Dur(hrs) Ops Code Activity Code Status Code Comment 06:00 06:00 24.00 FLOW BACK AF Flowing well to facilities Report Date: 4/21/2010 Job Category: COMPLETION 24 Hr Summary -- ----_- - -- -- Perforate Stage 2,6627-6632 and 6534-6543. Cleaned up well and turned over to facilities. www.peloton.com Page 23/25 Report Printed: 5/21/2010 M Marathon )perations Summary Report MARMON ®Oil Company Well Name: PAXTON 3 Ops Trouble Start Time End Time Dur(hrs) Ops Code Activity Code Status Code Comment 07:30 08:00 0.50 SAFETY MTG AF Arrived location,obtained safe work permit from Susan Dionne pad operator. PJSM-Discussed active gas pad rules. Assigned designated driver for medical emergencies. Reinforced Stop The Job obligations. Reviewed slips,trips,and falls around wellhead area. Went through pinch points and proper hand placement during e-line lubricator RU. Talked about immediate reporting of any HES issues. Placed special focus on crane operations during picks and lift. Reviewed perforating safety and radio silence during arming. 08:00 10:00 2.00 RURD ELEC AF MU tools and hot check for explosives operations. PU lubricator with tractor,CCL,WPC,shock absorber and 3-1/8"(5 ft.)perf.gun inside prior to lift. Pressure test lubricator to 2000 psi. 620 psi on wellhead prior to RIH, well flowing through facilities. 10:00 12:00 2.00 RUNPUL ELEC AF RIH to 1700'and start Welltec tractor. Power through horizontal section, shut down tractor at 4700'and run to 6800'using gravity. 12:00 12:30 0.50 PERF CSG AF Correlate to short joint located @ 6396-6416'. Take well off compression and shut well in at facilities,allow well to build to 1000 psi at surface. Set into position at 6619'CCL depth and fire guns. Noticed small pressure gauge response at surface. Perforated interval @ 6627-6632'. 12:30 13:30 1.00 RUNPUL ELEC AF POOH and bleed off lubricator through gas buster. Lay down 3-1/8"guns. Guns were partially wet and water was thought to be test fluid from wireline lubricator. All shots fired. Function test Welltec tractor and inspect perforating BHA. 13:30 14:00 0.50 PULD BHA AF MU tools and hot check for explosives operations. PU lubricator with tractor,CCL,WPC,shock absorber and 3-1/8"(9 ft.)perf.gun inside prior to lift. Pressure test lubricator to 2000 psi. 1205 psi on wellhead prior to RIH, well shut at gate valve and isolated from facilities. 14:00 15:30 1.50 RUNPUL ELEC AF RIH to 1700'and start Welltec tractor. Power through horizontal section, shut down tractor at 4300'and run to 6800'using gravity. 15:30 16:00 0.50 PERF CSG AF Correlate to short joint located @ 6396-6416'. Bleed well down from 1205 psi to 1000 psi at surface through gas buster. Set into position at 6625'CCL depth and fire guns. Noticed small pressure gauge response at surface. Perforated interval A 6534-654 '. 16:00 17:00 1.00 RUNPUL ELEC AF Drop down and make logging pass through perforations,good CCL signal from intervals perforated. POOH and lay down 3-1/8"guns. Guns were completely dry and all shots fired. Lay down Welltec tractor and inspect same,no issues. 17:00 17:30 0.50 RURD ELEC AF RD Expro and Welltec for the evening,lay down lubricator. 17:30 18:00 0.50 FLOW BACK AF Open up well to gas buster and flow back @ 16:45,held pressure steady at 755 psi surface. Flowed until well cleaned up and gas was to surface. No water returned during flowback operations. 18:00 19:00 1.00 FLOW TEST AF Turn well over to facilites and flow test well. Initial flow rate of4A5 Ml. 765 psi WHP. Continue flow test and add compression if necessary. 19:00 19:30 _ 0.50 SECURE WELL AF Secure well for evening and leave location. Daily Operations Report Date: 4/22/2010 Job Category: COMPLETION 24 Hr Summary Run production log across perforations at 30 fpm,60 fpm and 90 fpm. Perform stationary measurements above each set of perforations. Stops made at 6425',6525',6620',6700'and 6720 feet. Ops Trouble Start Time End Time Dur(hrs) Ops Code Activity Code Status Code Comment 06:00 07:00 1.00 SAFETY MTG AF Arrive SD pad,receive work permit,hold PJSM- Discussed active gas pad rules. Assigned designated driver for medical emergencies. Reinforced Stop The Job obligations. Reviewed slips,trips,and falls around wellhead area. Went through pinch points and proper hand placement during e-line lubricator RU. Talked about immediate reporting of any HES issues. Placed special focus on crane operations during picks and lift. 07:00 09:00 2.00 RURD ELEC AF Rig up wireline unit,crane truck,lubricator,tractor and production logging equipment. www.peloton.com Page 24/25 Report Printed: 5/21/2010 -- Marathon operations Summary Report ,�,,•�, ®Oi�Company Well Name: PAXTON 3 Ops Trouble Start Time End Time Dur(hrs) Ops Code Activity Code Status Code Comment 09:00 13:30 4.50 RUNPUL ELEC AF Begin up and down passes across perforations starting at 6200 feet measured depth to 6950 feet measured depth. Logging speeds are 30 fpm, 60 fpm and 90 feet per minute. Bottom hole pressure 953#at a temperature of 85.6 deg.F. Perform stationary stops at 6425 feet,6535 feet,6620 feet,6700 feet and 6720 feet measured depth. 13:30 14:30 1.00 RURD ELEC AF rig down wireline unit,lubricator,tractor and crane unit. 14:30 14:45 0.25 SECURE WELL AF secure wellhead,prepare turnover paperwork,turn in work permit,leave location Daily Operations Report Date: 5/5/2010 Job Category: R&M MAINTENANCE 24 Hr Summary MIRU Pollard wireline for flowing memory PT&tag. RIH w/2.60"GR,sit down @ 1850'MD RKB and WT down to 2250'. Unable to continue, POOH. RIH w/ dummy caliper and tagged at 3361'. WT and unable to get deeper, POOH. RIH w/additional weight bar and roller bogies to tag TD @ 7148',POOH. Perform flowing PT survey from surface to 7140'and back to surface. RD Pollard. Ops Trouble Start Time End Time Dur(hrs) Ops Code Ac tMty Code Status Code Comment 07:30 08:00 0.50 SAFETY MTG AF Held PJSM w/Pollard, UOSS,and operator. Discussed adjacent operations,emergency procedures,and jobsite hazards. Obtained safe work permit. 08:00 09:30 1.50 RURD SLIK AF RU slickline truck and equipment. MU lubricator and tool string and stab on well. 09:30 10:00 0.50 TEST BOPE AF PT lubricator to 3000 psi. Good test. 10:00 11:15 1.25 RUNPUL SLIK AF RIH w/RS,RB,5'x 1.75"stem, RB,OJ,LSSJ,RB,and 2.60"GR. Sat down @ 1850'MD RKB. Probable soap sticks laying in hole. Work tools up and down from vertical and able to get down to 2250'before losing progress. POOH. 11:15 12:45 1.50 RUNPUL SLIK AF RIH w/same BHA and dummy caliper(bowspring,5'x 2"stem,bowspring) to 3361'and WT several times up to vertical and back down again with no progress. POOH. 12:45 13:45 1.00 RUNPUL SLIK AF RIH w/same BHA and KJ, RB,5'x 2"stem and RB. No issues running to TD @ 7148'. POOH. 13:45 17:00 3.25 LOG PROD AF Perform flowing memory PT survey as follows: 10 min bench @ surface RIH 120 fpm to 7140' 10 min bench @ 7140' POOH @ 120 fpm 10 min bench @ 5000',3000',surface 17:00 18:00 1.00 RURD SLIK AF Check data-good data. LD lubricator and tool string. RD slickline truck and equipment. Sign out,turn in safe work permit,and leave location. www.peloton.com Page 25/25 Report Printed: 5/21/2010 Marathon Oil Company M Marathon Alaska Asset Team P.O. Box 1949 MAR THON ®Alaska Production LLC Kenai,AK 99611 Telephone 907/283-1371 Fax 907/283-1350 May 21, 2010 Mr. Winton Aubert Alaska Oil & Gas Conservation Commission 333 W 7th Ave Anchorage, Alaska 99501 Reference: 10-421 Open Flow Potential Test Report Field: Ninilchik Unit Well: Paxton # 3 Dear Mr. Aubert: Enclosed is the Open Flow Potential Test Report, 10-421, for well Pax-3. This well was spud on March 1, 2010 and completed into the Beluga formation. Results from the May 1, 2010 flow test were 3,793 mcf at 720 psi tubing pressure. Please call me at (907) 283-1371 if you have any questions or need additional information. Sincerely, Kevin J. Skiba Regulatory Compliance Representative Enclosures: 10-421 Open Flow Potential Test Report cc: Houston Well File Reference Attachment List Kenai Well File KJS to A. caber STATE OF ALASKA • ALASK/A OIL AND GAS CONSERVATION COMMISSION GAS WELL OPEN FLOW POTENTIAL TEST RIRecOVED la.Test: U Initial U Annual Li Special 1 b.Type Test: H Stabilized u❑ la $taf�jliz d 20,�d /� Multipoint Constant Time Isochronal �oMMtt 77tt +L( l!� 2.Operator Name: 5.Date Completed: NI�AlaF i f .1b� fission Marathon Alaska Production LLC 4/18/2010 � Ancherli-168 3.Address: 6.Date TD Reached: 12.API Number: PO BOX 1949 Kenai,Alaska 99611-1949 3/18/2010 50-133-20588-00-SO1 4a.Location of Well(Governmental Section): 7.KB Elevation(ft): 13.Well Name and Number: Surface: 713'FNL, 2,929'FEL, Sec.13, T1S, R14W, S.M. 171' above MSL Paxton-3 Top of Productive Horizon: 8.Plug Back Depth(MD+TVD): 14.Field/Pool(s): 1,066'FNL, 3,493'FEL, Sec.12, T1S, R14W, S.M. 7,218'MD+4,020'TVD Total Depth: 9.Total Depth(MD+TVD): Ninilchik Unit/Beluga Pool 522'FNL, 3,629'FEL, Sec.12, T1S, R14W, S.M. 7,414'MD+4,179'TVD 4b.Location of Well(State Base Plane Coordinates): 10.Land Use Permit: 15.Property Designation: Surface: x- 206,399.72 y- 2,230,648.16 Zone- NA TPI: x- 205,973.71 y- 2,235,491.98 Zone- 16.Type of Completion(Describe): Total Depth: x- 205,927.54 y- 2,236,057.40 Zone- Monobore with Tie-back tubing 17.Casing Size Weight per foot,lb. I.D.in inches Set at ft. 19.Perforations: From To 4.500" 12.6 ppf,Hydril 563 3.958" 7,418'MD 6,432' 6,452' 6,534' 6,542' 6,627' 6,632' 18.Tubing Size Weight per foot,lb. I.D.in inches Set at ft. 6,708' 6,715' 4.500" 12.6 ppf, IBT-M 3.958" 2,299'MD 6,722' 6,730' 20.Packer set at ft: 21.GOR cf/bbl: 22.API Liquid Hydrocardbons: 23.Specific Gravity Flowing Fluid(G): 2,271'MD NA NA 0.56 24a.Producing through: 24b.Reservoir Temp: 24c.Reservoir Pressure: 24d.Barometric Pressure(Pa): • Tubing 0 Casing 87.2 F° 1,570 psia @ Datum 3,849' TVDSS 14.73 psia 25.Length of Flow Channel(L): Vertical Depth(H): Gg: %COZ: %N2: %HA: Prover: Meter Run: Taps: 6,411'MD 3,364'TVD 0.56 0.21 0.218 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 1.000 875 53 54 - - - - 3.42 2. 3.826 X 1.000 829 56 54.6 - - - - 3.08 3. 3.826 X 1.000 770 58 54.6 - - - - 4.17 4. 3.826 X 1.000 675 61 53.5 - - - - 4.33 5. X Basic Coefficient Flow Temp. Super Comp. Pressure Gravity Factor Rate of Flow No. (24-Hour) by wPm Pm Factor F Factor Q,Mcfd Fb or Fp Ft g Fpv 1. 64.9 53.4977 889.73 1.00 1.336 1.0709 3470 ' 2. 70.9 55.2956 843.73 1.00 1.336 1.0654 3920 3. 76.7 56.2743 784.73 1.00 1.336 1.0606 4314 4. 85.4 57.1271 689.73 1.00 1.336 1.0535 4880 5. Temperature for Separator for Flowing No. Pr T Tr z Gas Fluid Gg G 1. 1.32 514.0 1.50 0.872 0.56 NA 2. 1.25 514.6 1.50 0.881 3. 1.17 514.6 1.50 0.889 Critical Pressure 673.1 4. 1.02 513.5 1.50 0.901 Critical Temperature 343.2 5. MAY 2 Form 10-421 Revised 1/2004 CONTINUED ON REVES MAl 2r !ry Submit in Duplicate ' Pc 1440 pc21 2,072,592 rr pf2 No. Pt Pte Pc2-Pt2 Pw Pw2 Pc2-Pw2 Ps Ps2 Pf2-Ps2 1. 890 792,064 2. 844 711,604 3. 785 615,916 4. 689 475,289 5. - 25. AOF (Mcfd) 7,347 n 1.531 Remarks: Well not shut-in during test. SIWHP estimated from MFT pressures (±1570 psia) I hereby certif that the foregoing is true an correct to the best of my knowledge. c Signed Title Regulatory Compliance Rep. Date May 21,2010 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 Pt Shut-in pressure at vertical depth H, psia Pm Static pressure at point of gas measurement, psia Pr Reduced pressure, dimensionless Ps Flowing pressure at vertical depth H, psia Pt Flowing wellhead pressure, psia Pw Static column wellhead pressure corresponding to Pt, psia O Rate of flow, Mcfd (14.65 psia and 60 degrees F) Tr Reduced temperature, dimensionless T Absolute temperature, degrees Rankin Z Compressibility factor, dimensionless Recommended procedures for tests and calculations may be found in the Manual of Back-Pressure Testing of Gas Wells, Interstate Oil Compact Commission, Oklahoma City, Oklahoma. Form 10-421 Revised 1/2004 Side 2 Pax-3 Ninilchik Unit / Paxton Pad Sundry Attachment List Directional Survey Repeat formation test Well Schematic Logs • Dual Radial/Gamma/CCL/Cement Bond Log • Compressional Waveform Processing, 1:240 Scale MD (3-24-10) • Compressional Waveform Processing, 1:600 Scale MD (3-24-10) • Gamma Ray, Acoustic Caliper, Resistivity, Porosity, Bulk Density„ 1:240 Scale, TVD (3-1-10) • Gamma Ray, Acoustic Caliper, Resistivity, Porosity, Bulk Density„ 1:240 Scale, MD (3-1-10) • Gamma Ray, Acoustic Caliper, Resistivity, Porosity, Bulk Density„ 1:600 Scale, TVD (3-1-10) • Gamma Ray, Acoustic Caliper, Resistivity, Porosity, Bulk Density„ 1:600 Scale, MD (3-1-10) • Gamma Ray & Caliper, Resistivity &Perm, Porosity, T2 Distribution, Volumetrics, 1:240 Scale TVD (3-1-10) • Gamma Ray & Caliper, Resistivity &Perm, Porosity, T2 Distribution, Volumetrics, 1:240 Scale MD (3-1-10) • Gamma Ray & Caliper, Resistivity &Perm, Porosity, T2 Distribution, Volumetrics, 1:600 Scale TVD (3-1-10) • Gamma Ray & Caliper, Resistivity &Perm, Porosity, T2 Distribution, Volumetrics, 16040 Scale MD (3-1-10) • Gamma Ray & Caliper, Resistivity &Perm, Porosity, T2 Distribution, Volumetrics, 1:240 Scale MD (3-22-10) • Gamma Ray & Caliper, Resistivity &Perm, Porosity, T2 Distribution, Volumetrics, 1:600 Scale MD (3-22-10) Compact Disc with Log files 111/ 411 (E.J, i f ' ,, \ Li r' � tl t G \ 1 P t t' f E r a r, K r " k ( ` \ i 1 SEAN PARNELL, GOVERNOR ALASKA. ��a� GAS ALAS OIL AND GAS o 333 W 7th AE, ALASKA SUITE 100 CONSERVATION COM ISSION 99501-3539 / PHONE (907) 279 -1433 FAX (907) 276-7542 Mr. Rowland C. Lawson Advanced Drilling Manager Marathon Oil Company 3201 C Street, Suite 800 Anchorage, Alaska 99503 Re: Ninilchik Unit, Beluga 86 Tyonek Pool, Ninilchik Unit - Paxton #3 Marathon Oil Company Permit No: 209 -168 Surface Location: 713' FNL, 2929' FEL, Sec. 13, T1S, R14W, S.M. Bottomhole Location: 580' FNL, 1753' FWL, SEC. 12, T1S, R14W, S.M. Dear Mr. Lawson: Enclosed is the approved application for permit to drill the above referenced development well. This permit to drill does not exempt you from obtaining additional permits or an approval required by law from other governmental agencies and does not authorize conducting drilling operations until all other required permits and approvals have been issued. In addition, the Commission reserves the right to withdraw the permit in the event it was erroneously issued. Operations must be conducted in accordance with AS 31.05 and Title 20, Chapter 25 of the Alaska Administrative Code unless the Commission specifically authorizes a variance. Failure to comply with an applicable provision of AS 31.05, Title 20, Chapter 25 of the Alaska Administrative Code, or a Commission order, or the terms and conditions of this permit may result in the revocation or suspension of the permit. When providing notice for a representative of the Commission to witness any required test, contact the Commission's petroleum field inspector at (907) 659 -3607 (pager). Sincerely, Daniel T. ' eamount, Jr. 2' Chair DATED this J day of December, 2009 cc: Department of Fish 86 Game, Habitat Section w/o encl. (via e -mail) Department of Environmental Conservation w/o encl. (via e -mail) 111. 411 E! / STATE OF ALASKA LNG/T ALASKA OIL AND GAS CONSERVATION COMMISSION DEC 2 3 2.009 it- ;ti2ooy PERMIT TO DRILL 20 AAC 25.005 0 a! & r3t4 ,rm) .S. COMMISswn la. Type of Work: lb. Proposed Well Class: Development - Oil ❑ Service - Winj ❑ Single Zone ❑ lc. S i ! t proposed for: Drill Gas s Gas Hydrates ❑ Re -entry ❑ Exploratory ❑ Service - WAG ❑ Service - Disp ❑ Shale Gas ❑ 2. Operator Name: 5. Bond: Blanket Q Single Well ❑ 11. Well Name and Number: Marathon Oil Company Bond No. 5194234 Ninilchik Unit - Paxton #3 3. Address: 6. Proposed Depth: 12. Field /Pool(s): 3201 C. Street, Suite 800, Anchorage, AK 99503 MD: 7,314' TVD: 4,075' - Ninilchik Unit 4a. Location of Well (Governmental Section): 7. Property Designation (Lease Number): Beluga Pool Surface: 713' FNL, 2929' FEL, Sec. 13 T1S, R14W, S.M. / Fee Lease Tract 163, Sec 13, T1S, R14W, S.M. Tyonek Pool Top of Productive Horizon: / 8. Land Use Permit: 13. oximate Spud Date: 2638' FNL, 1994' FWL, SEC.12 T1S, R14W, S.M. F . 23 2010 Total Depth: 9. Acres in Property: 1 ance to Nearest Property: 580' FNL, 1753' FWL, SEC 12 T1S, R14W, S.M. / 33.21 1900' (Fee Lease Tract 162) 4b. Location of Well (State Base Plane Coordinates - NAD 27): 10. KB Elevation above I ■ 171 feet 15. Distance to Nearest Well Open Surface: x- 206399.72 y- 2230648.16 Zone- 4 GL Elevation above A 150 feet to Same Pool: 1300' from Paxton #1 16. Deviated wells: Kickoff depth: 200 feet 17. Maximum Anticipated Pressures in psig (see 20 AAC 25.035) d_ Maximum Hole Angle: 80.5 degrees Downhole: 1950 Surface: .4061 f yo WM- 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" 129.25 X -56 PE 77' 0' 0' 98' 98' Driven 12 1/4" 9 5/8" 40 L -80 BTC 2,479' 0' 0' 2,500' 1,444' 595 SXS 8 1/2" 4 1/2" 12.6 L -80 Hydril 563 5,014' 2,300 / 1,411' 7,314' 4,075' 1079 SXS tail 280 SXS lead 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: Property Plat gi BOP Sketch El Drilling Program all Time v. Depth Plot ❑ Shallow Hazard Analysis Diverter Sketch el 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 Rowland C. Lawson Title Advanced Drilling Engineer Signature (� -7 Phone 907 - 394 -0953 Date / [ 7,3 ^ Q Commission Use Only Permit to Drill API Number: Permit ApPr See cover letter for other Number: 0209/,62r 50%�,2�0 sf000t, Date: 1 7 i /f q 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: [k I Other: Samples req'd: Yes ❑ No [✓] Mud log req'd: Yes ❑ No []' H measures: Yes ❑ No W( Directional svy req'd: Yes "o ❑ e + 1C P& fo 2000 ec t . /Z. APPROVED BY THE COMMISSION 3 DATE: , ,. r '/ , COMMISSIONER Form 10 - 401 (Revised 7/2009) This permit is valid for 24 months from the date of approval (20 AAC 25.005(g)) Submit in Duplicate ORIGINAL . • Worldwide Drilling North America M Marathon o i ' pant P.O. Box 3128 MARATHON Houston, TX 77253 -3128 Telephone 713 - 629 -6600 Fax 713 - 499 -6737 December 21, 2009 Daniel T. Seamount, Jr. Commissioner RECEIVED State of Alaska ,. Alaska Oil & Gas Conservation Commission 333 West 7 Ave, Suite 100 DEC 2 3 2909 Anchorage, AK 99501 Mesita Oil � C� Cons. Commission Anchor�lne Reference: Drilling Permit Application Field: Ninilchik Field Well: Ninilchik Unit — Paxton #3 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 and Tyonek Pools in the Ninilchik Unit. 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 907 - 394 -0953 or by e-mail at rclawson @marathonoil.com. Sincer G owland C. Lawson Advanced Drilling Engineer Enclosures • • Paxton 3 Marathon Oil Company Drilling Program Alaska MARATHON MARATHON OIL COMPANY DRILLING PROGRAM Ninilchik Field Paxton 3 Originator: Rowland C. Lawson December 21, 2009 Date Reviewed by: Will Tank Date Brian Roy Date 12/23/2009 Page 1 of 18 • • Paxton 3 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 11 4.11 Blowout Prevention Equipment, Testing and General Procedures 12 4.11.1. Function Testing 12 4.11.2. Pressure Testing 13 4.12 Wellhead Equipment Summary 13 4.13 Directional Program Summary 13 4.14 Directional Surveying Summary 14 4.15 Drilling Fluid Program Summary 15 4.16 Drilling Fluid Specifications 15 4.17 Solids Control Equipment 16 4.18 Cement Program Summary 17 4.19 Bit Summary 17 4.20 Hydraulics Summary 18 4.21 Formation Integrity Test Procedure 18 12/23/2009 Page 2 of 18 • • Paxton 3 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 12/23/2009 Page 3 of 18 • Paxton 3 Marathon Oil Company Drilling Program Alaska 1. Emergency Response Information 1.1 Directions to Location Method Directions Air Latitude - 60 °05'44.074 "N Longitude - 151°36'39.026"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 Ground Bridge Access Road 3.2 miles. Turn West on Kalifornsky Beach Road. Go West and then South, go 16.9 miles. Turn South on Sterling Highway, go 21 miles. Turn West onto road to the pad (Sterling Highway milepost 130.8). 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: 12/23/2009 Page 4 of 18 • • Paxton 3 Marathon Oil Company Drilling Program Alaska 1.5 Marathon Contact List Contact Title Office Mobile Facsimile Home Rowland Lawson Drilling Engineer 907 - 283 -1312 907 - 394 -0953 907 - 394 -1313 907- 394 -1002 Will Tank Drilling Superintendent 713- 296 -3273 713- 203 -8398 713- 499 -6737 823- 934 -2617 Bryan Roy Drilling Manager 713 - 296 -3256 832 - 444 -4772 713 - 499 -6707 281 - 246 -4686 David Gorney Geologist 713 - 296 -3390 713 - 301 -9834 Clyde Scott Reservoir Engineer 713 - 296 -2336 Nick Miller Completion Engineer 713- 296 -1920 713- 294 -1735 Mickey Mullin Production Engineer 907 - 283 -1337 907 - 398 -9954 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 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 2.1.2. External Regulatory Contact Contact Title Office Phone Facsimile 24 hr Emergency Paper AOGCC 907 - 793 -1236 AOGCC North Slope Pager - 907 - 659 -3607 BLM 907 - 267 -1442 3. Regulatory Compliance Regulation Requirement Prior to Rig Move Notify Alaska Department of Natural Resources 24 hours before moving the rig, if going to Ninilchik or Kasilof. 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 (20 AAC 25.035 e 10 F). Prior to Spud Requirement for a 24 hour notice to AOGCC. 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. Comments l 12/23/2009 Page 5 of 18 • • Paxton 3 Marathon Oil Company Drilling Program Alaska 4. Drilling Program Summary 4.1 General Well Data Well Name Paxton 3 Lease / License Surface Location 713' FNL, 2929' FEL, Sec.13 , T1S, R14W, S.M. WBS Code DD.09.21293.Cap.Dr1 Slot/Pad Paxton Pad Field Ninilchik Unit Spud Date 2/15/10 (est.) KB (above MSL) 171' County /Province Kenai Peninsula API No. GL (above MSL) 150' State / Country Alaska Permit No. Perm. Datum KB Total MD 7314' Well Class Development Water Depth N/A Total TVD 4075' 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 60% P.O. Box 196168 907- 561 -5311 907 - 565 -3076 Anchorage, AK 99519 -6168 Chevron 40% 4.3 Geologic Program Summary Surface Location Coordinates — NAD 83 From Lease/Block Lines 713' FNL, 2,929' FEL, Sec. 13, T1S, R14W, S.M. Latitude 60° 05' 44.074" N Longitude 151° 36' 39.026" W UTM North (Y) 2,230,407.05' UTM East (x) 1,346,419.18' Tolerance Pore Pore MD - RKB TVD — RKB Pressure Pressure Possible Formation (ft) (ft) (psi) (ppg) Lithology Fluid Content Beluga B1 (Primary Target) 4,137 1,782 7.7 — 8.8 Sandstone Gas Beluga B2 (Primary Target) 5,361 2,489 7.7 — 8 Sandstone Gas Tyonek Ti Coal A 6,571 3,471 7.7 9 .2 Sandstone Gas /Water 12/23/2009 Page 6 of 18 • • Paxton 3 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) Beluga B1 4,137 1,782 - 2,638' FNL, 1,994' FWL, Sec. 12, T1S, R14W, S.M. 3,214 -355 Circle 100' radius Beluga B2 5,361 2,489 - 1,728' FNL, 1,892' FWL, Sec. 12, T1S, R14W, S.M. 4,190 -467 Circle 100' radius Tyonek T1 Coal A 6,571 3,471 - 1,010' FNL, 1,812' FWL, Sec. 12, T1S, R14W, S.M. 4,893 -547 Circle 100' radius TD 7,314 4,075 -580' FNL, 1,753' FWL, Sec. 12, T1S, R14W, S.M. 5,324 -597 Circle 100' radius Comments: 1. There are no zones from surface to TD that have water with a TDS of 10,000 ppm op/di 2. No zones above the Beluga B1 (4,137' MD, 1,782' TVD) contain oil or gas. 3. The proposed top of cement is greater than 500' above the Beluga B1, the highest known hydrocarbon bearing zone. i 4.4 Summary of Potential Drilling Hazards Depth KB Hazard Event (ND) Discussion Precautions Bit or BHA balling Surface Hole Maintain high pump rates to keep bit and BHA clean. Use extra circulation time if necessary. Production Use good hole cleaning techniques with high pump Excessive pumping on bottom could Excessive Torque Hole rates. Add lubricant where necessary. result in hole washout. 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- 4,137' MD (1,782' TVD) to total depth of the well. These sands will run from slightly depleted to above normal pressure. Lost circulation and differential sticking are potential hazards in some of the 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' — 2,500' MD Production None Baker Hughes Quadcombo LWD, Basic with GCA, shale density, temperature in and 2,500' — 7,314' MD MagTrack and TestTrack formation tester. Pull GR- Neutron to surface. out, sample collection (10' samples). Completion N/A GR, CCL, CBL N/A Comments: 12/23/2009 Page 7 of 18 • • Paxton 3 Marathon Oil Company Drilling Program Alaska 4.6 Drilling Program Summary Drive Pipe: N/A Conductor: 20" set to approximately 100', prior to drilling rig move. MIRU drilling rig. NU BOP as diverter on conductor. 1. RU crane and hammer. Drive 20" conductor to +/ -100 ft. RKB. RD crane and hammer. 2. Move in and rig up rotary drilling rig. 3. Install starting head 20" SLC x 21 1/4 ", 2M flanged. 4. Nipple up 21 1/4 ", 2M diverter, 16" diverter valve, and 16" diverter line. 5. Function test diverter and diverter valve. Best Practices: 1 Comments: Surface: Drill 12 1/4" hole to +/- 2,500' set 9 -5/8" casing. 1. Drill a 12 1/4" hole to 2,500' MD (1,444' TVD) per the directional plan. 2. At TD circulate hole clean. Make wiper trip. TOOH. 3. Run and cement 9 5/8" casing. 4. Cut off 9 5/8" casing. ND diverter. 5. Install 9 5/8" slip lock connection X 11" 5M flanged multibowl wellhead. 6. NU 11" 5M X 13 5/8 "5M adapter spool. N/U 13 5/8" 5M spacer spool. NU 13 5/8" 5M BOP'S. Test BOP's and choke manifold to 250/2,000 psi. r 7. Set wear bushing. 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: Production: Drill 8 1/2" hole to +/- 7,314' set 4 -1/2" liner. Tie back to surface with 4 1/2" tubing. 1. PU 8 1/2" PDC bit and rotary steerable directional BHA. Baker BHA will include LWD Quadcombo, Magtrack and Testtrack formation tester. Drill out float equipment and 20' of new for aff n. CBU. 2. Test shoe to a FIT of 15 ppg. Estimated Leak Off EMW is ` 8.t�pg. 3. Drill 8 1/2" hole to an anticipated TD of 7,314' MD (4,075' TVD) as per the directional program, short tripping as required. 4. At TD circulate hole clean. Make wiper trip. 5. Make any additional passes for additional LWD or Formation tester logs as required by Geologist. ZOpc 6. TOOH and lay down BHA. Pull wear bushing. VEk 7. RU and run 4 1/2" Hydril 563 casing liner with hanger on drill pipe. Run liner to TD with top of liner at approximately 2,300' MD. On bottom reciprocate and rotate liner while circulating the hole. 8. RU cementing company. Cement 4 1/2" liner while reciprocating and rotating pipe. Drop wiper plug and displace with liner volume of viscosified brine followed with mud. Bump plug to pressure up and set the liner hanger. Release hanger running tool, pick up and clear seal area of any cement. Pick up out of liner. 9. Circulate hole clean. If cement circulates, TOOH. If cement doesn't circulate, WOC, then prepare and pump liner top job. 10. Once cement is either circulated or the liner top is squeezed, PU polish mill for 4 1/2" liner along with string mill for 9 5/8" casing. Make cleanout trip to top of 4 1/2" liner with mill combo on drill pipe. Polish 4 1/2" liner seal bore. 11. Run 4 1/2" liner hanger packer with hydraulic pusher tool. Stab into polish bore receptacle and set packer. Test casing to / 1500psi. TOOH laying down drill pipe. / 12/23/2009 Page 8 of 18 • . Paxton 3 Marathon Oil Company Drilling Program Alaska 12. Set 11" x 7" spacer bushing in lower multibowl section to allow the 4 1/2" tubing hanger to set in the upper multibowl section. 13. Run 4 1/2" tubing with seal unit. Displace hole with 3 % KCL. Space out tubing and land hanger. Set BPV and ND BOP, NU tree. Pull BPV and set TWC. Test tree to 5,000 psi. Pull TWC and set BPV. 14. Rig down and move out drilling rig. Best Practices: 1 Pre -heat mud mix water to help in early shaker screen blinding issues with the mud. 2 Drill all hole sections with 5" drillpipe to maximize hole cleaning hydraulics. 3 Do not circulate on bottom longer than 1 hour prior to moving pipe on a short trip to minimize hole washout. 4 Put lubricant in prior to drilling out surface shoe. 3 -5% LoTorq is normally required, possibly more depending on solids in the mud. Maintain a minimum of 3% throughout the hole section. Comments: Care must be taken on trips to minimize the possibility of surging the hole. Completion: Completion will be done without a rig. This will include perforating via wireline on targeted i - zones. 12/23/2009 Page 9 of 18 • • Paxton 3 Marathon Oil Company Drilling Program Alaska 4.7 Casing Program Summary M D (ft) Connection API Ratings Casing Makeup Hole = fl. — o , Size Weight ID Drift O. D. Torque Size CO o- -6 -' h (in) Top Bottom (Ibs /ft) (in) (in) Grade Type (in) (ft -Ibs) (in) 9 5/8 0 2,500 40 8.835 8.679 L -80 BTC 10.625 N/A* 12 1/4 5,750 3,090 916 41/2 2,300 7,314 12.6 3.958 3.833 L -80 Hydril 563 5.200 10,080 81/2 8,430 7,500 288 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 torque shown for the Hydril 563 is 80% of yield. The final make up torque for the liner should exceed any potential torque that would be used to release the running tool from the hanger. * - Make up buttress connection to proper mark, not to a torque value. Comments: 1 ALL CASING WILL BE NEW CASING. 4.8 Casing Design Casing Shoe Safety Factors Setting Maximum m Casing Depth Mud Wt Frac. Form Surface o g Size Weight TVD When Set Grad Press Pressure 1 o (in) (Ib /ft) Grade (ft) (lb/gal) (lb/gal) (Ib /gal) (psi) m U 1- 9 5/8 40 L -80 1444 9.4 18.0 8.3 1,061 2.76 4.34 3.39 41/2 12.6 L -80 3,843 9.5 16.5 9.2 1,061 1.11 3.73 2.04 4.9 Calculation of Maximum Anticipated Pressures (MAWP and MASP) Setting Casing Depth Size TVD MAWP * MASP ** Mud /Gas (in) (ft) (psi) (psi) Percentage 9 5/8 1,444 3,942 1,061 30/70 4 1/2 4,075 3,942 1,061 30/70 * MAWP = Maximum allowable working pressure ** MASP = Maximum anticipated surface pressure The calculation m hod for MASPBH s been modified the standard GCC use of a om Hole Press – 0.1 psi /ft 2 gas gradient hat Marathon ciders a more acc to Bottom Hol essure – 30% Column – 70% s Column. Thi . method f ws the MMS st and for any well ' a TVD of 12,00 ' r less. Maratho elieves that con ant gas monito ' g and p er rig supervis well control traini will prevent the pdssibility of a wel re being complet y evacuated ' only a s gradient rema' ng. 12/23/2009 Page 10 of 18 • • Paxton 3 Marathon Oil Company Drilling Program Alaska Surface casing: 9 5/8" (2,500' MD, 1,444' TVD) MASPf = ((Fracture gradient at shoe) x .052 x TVDshoe) - Hydrostatic pressure of gas column at the shoe. MASP = (18.0 ppg x .052 x 1,444') - (0.1 psi /ft x 1,444') MASPfrac = 1,352 psi - 144 psi MASPf = 1,208 psi. MASPbh = BHP • open hole td — Hydrostatic pressure of mud portion — Hydrostatic pressure of gas portion MASP bhp = (9.2 ppg x .052 x 4,075') — (0.3 x 9.5 ppg x .052 x 4,075') — (0.7 x 0.1 psi /ft x 4,075') MASPbh = 1,950 psi — 604 psi — 285 psi MASPbh = 1,061 psi MASP = MASPbh psi MAWP = (0.7 x Casing Burst) — (Mud Wt. — Backup Fluid Wt.) x .052 x TVD MAWP = (0.7 x 5,750) — (9.4 — 8.3) x .052 x 1,444' MAWP = 4,025 psi — 83 psi = 3,942 psi Production liner: 4 1/2" (Top — 2,300' MD, 1,411' TVD) (Bottom — 7,314' MD, 4,075' TVD) MASP = MASP950 =-1-,f161 psi MAWP = MAWP = 3,942 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 test pressures must be 50% of the BOP working pressure documented on the approved permit to drill. Best Practices: 1 Comments: 12/23/2009 Page 11 of 18 • • Paxton 3 Marathon Oil Company Drilling Program Alaska 4.11 Blowout Prevention Equipment, Testing and General Procedures BOP PROGRAM Casing Test Test Casing Test Fluid Pressure Size MAWP MASP Press Density BOPS Low /High Casing (in) (psi) (psi) (psi) (lb/gal) Size & Rating (psi) (1) 13 -5/8" 5M annular (1) 13 -5/8" 5M pipe ram Surface 9 5/8 3,942 1,060 1,500 9.4 (1) 13 5/8" 5M blind ram 250/2000 (1) 13 -5/8" 5M drilling spool with 3 -1/8" 5M outlets (1) 13 -5/8" 5M pipe ram (1) 13 -5/8" 5M annular (1) 13 -5/8" 5M pipe ram Production 41/2 3,942 1,060 1,500 (1) 135/8" 5M blind ram 250/2000 i (1) 13 -5/8" 5M drilling spool with 3 -1/8" 5M outlets (1) 13 -5/8" 5M pipe ram 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, a 13 -5/8" x 5000 psi drilling spool (mud cross) with 3 -1/8" x 5000 psi outlets, and a 13 -5/8" x 5000 psi single pipe ram. vE2 The choke manifold will be rated 3 -1/8" x 5000 psi. It will include a remote hydraulic actuated choke and a hand adjustable choke. Also included is a poor -boy gas buster, and a vacuum -type degasser. A flow sensor will be installed in the flowline and the mud pits will contain sensors to measure the volume of fluid in the surface mud system. Both sensors will contain readouts convenient to the drillers console. 4.11.1. Function Testing Function Regularly. 12/23/2009 Page 12 of 18 • • Paxton 3 Marathon Oil Company Drilling Program Alaska 4.11.2. Pressure Testing The Marathon Drilling Supervisor will verify all pressure tests of BOP's, surface lines, seals, casings and FIT or LOT tests. All tests are to be recorded on the IADC and daily drilling reports. Best Practices: 1 Comments: 4.12 Wellhead Equipment Summary Component Description Casing Hanger Type Casing Head 11" 5M X 9 -5/8" Slip Loc W/ 2, 2" LPO, Landing Base for 20" Conductor, U, AA, PSL1, PR1 11" x 7" Fluted Mandrel Tubing Head 11" 5M Studded Bottom X 11" 5M Flg Top, W/ 2, 2- 1/16" 5M Studded Outlets, U,AA,PSL1,PR1 11" x 4 1/2" Fluted Mandrel Adapter Flange 11" 5M X 4- 1/16" 10M W/ Seal Pocket and 4" H BPV Threads Best Practices: 1 Comments: 4.13 Directional Program Summary Build Turn Coordinates Sec. MD TVD Rate Rate Dogleg Inclination Azimuth +N / -S +E/ -W VS No. Description (ft) (ft) ( °/100') ( °/100') ( °/100) (deg) (deg) (ft) (ft) (ft) 1 Tie On 0 0 0 0 0 0 353.715 0 0 0 2 KOP 200.00 200.00 0 0 0 0 353.715 0 0 0 3 Build up Section 5.00 0 5.00 353.715 4 End of Build 1,810.11 1,330.22 5.00 0 5.00 80.506 353.715 951.14 - 104.75 956.89 5 Hold Section 0 0 0 80.506 353.715 6 End of Hold 3,687.52 1,639.90 0 0 0 80.506 353.715 2,791.71 - 307.45 2,808.58 7 Drop Section -4.00 -.06 4.00 353.709 1 8 End of Drop 4,137.40 1,782.00 -4.00 -.06 4.00 62.512 353.455 3,213.96 - 354.87 3,233.49 9 Hold Section 0 0 0 62.512 353.455 10 End of Hold 4,542.77 1,969.10 0 0 0 62.512 353.455 3,571.22 - 395.86 3,593.09 11 Drop Section #2 -3.02 0 3.02 353.455 12 End of Drop 5,430.47 2,545.09 -3.00 0 3.00 35.691 353.455 4,231.69 - 471.63 4,257.89 14 TD 7,314.13 4,074.95 0 0 0 35.691 353.455 5,323.47 - 596.89 5,356.83 12/23/2009 Page 13 of 18 ■ • 0 Paxton 3 Marathon Oil Company Drilling Program Alaska M■■ .I I 5333- �� \+ _ MI 1 uu1 1 _� , l' ik - TD I r 500- - I -. 1 . _..._ - -11 11111 - - - " Surface Casing: .1� NE 1 __ Tyonek T1 - - — ,-.7. 1000- �IIIIIIIIpil �1 • • 4267- -. 5 u a � - Beluga B2 • 0 1500 _.._ !1'1 - - - - Beluga B1 �- - - ....---- - g _. - - -- L rniiri®�� 32 00_ II .� -c 200 -.- S� v - 0 1 Beluga B2 + ii 1 ,.I o - Beuga 61 2500 ► �1 11 z N co i 3000 -_ I I[ -, - 11 - = 2133- -- - - -- -. _.... _ f _. - -_ --- 1 � ^yonek �- 1067 3500- \ . _ ■ , I ` { { 41/2" Production Liner �� li 4000 1 : I � n��it TD- I� . -. _ _ - - -- - 0 l - 11 I I I T 1111 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 I- I I I I I 1 1 I I I I I I 1 1 I I I I I I I -1000 0 1000 2000 3000 4000 5000 6000 7000 -2000 -1000 -0 1000 2000 Vertical Section at 353.602° (2500 ft /in) West( - /East( +) (1500 ft /in) Comments: Vertical section calculated from a reference azimuth of 353.60° taken from surface location to bottom hole location. Potential Well Interference: Well Distance (ft) Depth (MD) Paxton #2 37.06 0 Paxton #1 72.73 212 No serious interference exists. See attached directional plan and anticollision analysis for more details. Best Practices: 1 Comments: 4.14 Directional Surveying Summary Other Survey Interval MD (ft) MWD Survey Magnetic Multishot Gyro Multishot Remarks Tool Surface 0 - 2,500' X Production 2,500' - 7,314' X Best Practices: 1 Comments: 12/23/2009 Page 14 of 18 • • Paxton 3 Marathon Oil Company Drilling Program Alaska 4.15 Drilling Fluid Program Summary Interval — TVD Minimum Inventory From To Density Gel (ft) (ft) (lb/gal) Fluid Description Additives Viscosifier Barite 0 1,444 8.8 — 9.4 Gel / Gelex Spud Mud Gel, Gelex, Caustic Flo -Vis, PolyPac UL, KCI, SafeCarb F &M, 1,444 4,075 8.9 - 9.5 3% Flo -Pro NT w/ Safecarb Asphasol Supreme, Lo Torq, Conqor 404, Sodium Meta Bisulfite, Klagard Best Practices: 1 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) (lb/100 ft (cc) pH ( %) 0 1,444 8.8 -9.4 60 -100 N/A 15 -24 > 30 < 18 8.0- 9.0 <6 30,000 — 1,444 4,075 8.9 -9.5 ` 10 -16 12 -8 5 -7 9 -9.5 <6 40,000 Best Practices: 1 As a standard practice for tie -back string completions, displace the drilling mud above top of liner with brine treated with corrosion inhibitor (Congor 303A) at a concentration of 1 drum per 100 barrels of fluid. Comments: See mud prognosis for details. Sized CaCO3 (SafeCarb) and graphite will be used to control leakoff. 12/23/2009 Page 15 of 18 • Paxton 3 Marathon Oil Company Drilling Program Alaska 4.17 Solids Control Equipment o w i) 0 2 a) m m if) ld N o C U 6 N N Y m U - c c 0 m w in a c e Interval 0 0 v U 0 N Comments 0 — 7,314' 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 1 — 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: 12/23/2009 Page 16 of 18 • • Paxton 3 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 98 98 Driven N/A 95/8 2,500 1,444 121/4 0 0 ( r 1,441 12.0 75 8 4 1/2 7,314 4,075 8 1/2 2,300 / 1,411,/ 1,977 12.5 / 15.8 40 N/A Mix Water Compressive Casing Slurry TOC Strength Size Density Qty Yield Vol MD Qty WL FW (psi) (in) Slurry Cement Description (lb/gal) (sx) (ft /sx) (ft3)— ) (ft) (gal /sx) Type (cc) ( %) 8 hr 24 hr 9 5/8 Tail Type I Cement 12.0 595 2.48 1,476 t 0 10.33 Fresh 620 0 440 1879 4 1/2 Lead Class "G" 12.5 280 2. 714 i ( 2,300 14.15 Fresh 40 0 187 689 / Tail Class "G" 15.8 1,079 1. 8 1,273 / 4,137 4.97 Fresh 60 0 98 2468 Best Practices: 1 Pump several fluid calipers at TD to help with the hole volume determination from the open hole caliper log. Comments: 1. Cement volumes on the production hole are based on 40% over gauge hole. Once the caliper log is obtained the team will need to discuss final excess. 2. Volume calculations assume 80' of internal cement for the shoe tracks. See cement prognosis for details and spacer specifications. 3. Centralizers for the casing strings will include at least 1 per joint on the bottom 3 joints as per BLM regulations. 4.19 Bit Summary Interval — MD Type Recommended Estimated Expected From To Size WOB Rotating Minimum ROP (ft) (ft) (in) Manufacturer Model No. IADC (kips) RPM Hours (ft/hr) 0 2,500 12 1/4 Christensen MX -1 115 27.5 - 65 Motor 2,500 7,314 8 1/2 Christensen HCM 506Z M323 Up to 29 Motor Best Practices: 1 Comments: See bit prognosis for additional information. Back up bits for the 8 '/Y hole section will consist of an MXL- 18DX (IADC 447) bit. I 12/23/2009 Page 17 of 18 • • Paxton 3 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 Depth -MD Size Rate Pressure Min AV MW ECD Size AP b at bit (ft) (in) (gpm) (psi) (fpm) (ppg) (ppg) (32 "s) (psi) Remarks (Drill string configuration) 2 -18's 0 — 2,500' 12 1/4 700 2,105 137 9.4 10.34 191 MI Virtual Hydraulics (@ 2,500' MD) 1 -16 2,500' — 7,314' 8 1/2 450 1,776 232 9.5 11.22 6 — 13's 296 MI Virtual Hydraulics (@ 7,314' 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 12 1/4" and 8 1/2" holes were calculated using 5" drillpipe. 4.21 Formation Integrity Test Procedure The surface casing shoe 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: 12/23/2009 Page 18 of 18 Marathon Oil Well Paxton #3 Diverter Flow line 21 1/4" 2M Diverter _♦ 1 16" Automatic Knife Valve Diverter Spool 16" Diverter Line 0 • Marathon OH Well Paxton #3 BOP Stack Flow Nipple I --------------1. Flow LinE 13 5/8" 5M Annular ■ Preventer 13 5/8" 5M Double Ram Preventer . Pipe Ram . / Va 2 1/16" 5M . Blind Ram . r Check Valve 2 1/16" 5M Manually 3 1/8" 5M Manually Operated Valves Operated Valve _— -- `X_, - -LX II MEI Choke II'I\©IIIII'11III 13 5/8" 5M Cross 1 3 1/8" 5M Hydraulically ill Pipe Ram . / Operated Valve 13 5/8" 5M Single --► Bottom of Single gate must be Ram Preventer =4 24 -45" from ground level for Glacier 1 rig placement. 13 5/8" 5M x 13 5/8" 5M � Drilling Spool ■ ■1,-----..I11 "5Mx135 /8 "5MDSA I 1 • • Marathon Oil Well Paxton #3 Choke Manifold To Gas Buster To Blooey Line Bleed off Line to Shakers Ng Ems. mom Nom. AK u u TO rig Wir mom mom cm 1 1 I 1 1 I I I , 0 0 _ 000 _ _ C G0 0 — 1 1 I 1 1 I 1 1 I I i I 1 I I(5 1 1 ■ I 1 M\ �1 © I r t I TO 1 u n 1 n , u u mia iII 011 1 3" 5M Valves 0 A 1 ■ 2 9/16" 10M Swaco 3 1/8" 5M Manually Hydraulically Operated Adjustable Choke Choke Gauge Block Choke Hose to HCR (BOP Stack) • • ,2 7 / _ SECTION LINE (NTS) NE CORNER 513 ,3 N 2231045.67 ..�.�".. E 1349365.17 / NORTH G NOTES ` 1. BASIS OF ELEVATIONS IS NGS MONUMENT S 82 PID 10583 AT MILE POST SCA LE -+A(......- 124.2 OF THE STERLING HIGHWAY. THE ELEVATION OF S82 IS 237.12 FEET 0 100 200 (NGVD 29). BASIS OF HORIZONTAL COORDINATES ARE ALASKA STATE PLANE I ' NAD 83 ZONE 4 EPOCH 2003 DETERMINED BY AN NGS OPUS SOLUTION FROM CORS BASE STATIONS "TLKA PIO AH2494 ", "ZAN1 PID DE9153" AND "GNAA PID FEET AH2492" OBSERVED JUNE 5, 2007 ON MCI S82 ECC 2" ALUM. CAP SET � . 2 ` \ %' t t % t ADJACENT TO BM S82 N: 2252517.780 E. 1368533.525 ELEV: 240.08 FEET. 2) NORTHEAST CORNER SEC. 13 COORDINATES DETERMINED FROM DIRECT 4a '''S� 0 F .. l (1 t PROTRACTED SECTION CORNER VALUESECTK)N CORNER RECOVERED NOT J ,. s *4 * � / y I,. r., Ps.let j t M. Scott McLANE s E.• �`� 4928 -S ,xL:, P d ®o "" • l ' /' OS •y ccumuN1:Ano 44 � ^cun;�ca,..rlal F ck ,. R Z / r M NINILCHIK, PAXTON PAD � I fi_N 1 f 4M1ll r3 or- 1 _ i :r Uw ASONA: ♦ (3 y b SE CHANNEL �. �/ , „.,,. / ,,/ %, i re z J AO ) PPua, SECTION 13 s }. •R60 0 • "` ';` " AXTIDN Na. 3 WE / T 1 S, R 14 W S.M., AK N w, `''' . ,' f AS -BUILT PAXTON.1 SPENCER ESTATE SPCC11014} �� .�' H� ,' SI I GOVT. LOT 1 ..�� ` PAXTON # 2 W E ` 2929' FEL 8' CIA CEP Ca �.... ` ' OOR 162290620687 . .1., GRID E:20630126 ELEV 10.60' / C • PA TON a 1 WELL PAXTON NO.3 � � . P DIA CRP CELLAR. / 20" DIA. CONDUCTOR � • / N:2230648.156 44 . / E:206399.720 4 60°05'46.219 "N i 15 36 kitb NAD27 ASP ZONE 4 +� FEL = 2929' FNL =713' ELEV = 148.2' (NGVD29) LEI SECTION 13 ORAIMAGE awIa = "` Sr RFr TOWNSHIP 1S jmmg RANGE 140, SM AK 6.6x: PROJECT REVISION: 2 MARATHON PAXTON NO. 3 WELL DATE: ,2/09100 01L COMPAQ AS -BUILT WELL LOCATION DIAGRAM DRAWN BY: SOB ARATHON * MANX ]ice NAD 27 SCALE: r =100' FOR INFORMATIONAL PURPOSES ONLY PROJECT NO. 083051 ENGINEERING I MAPPING 1 SURVEYING I TESTING BOOK NO. 08-03 C on utbn5 In �P' P.O. BOX 488 SOLOOTNA. AK 88669 LOCATION •I� ��M VOICE L: SAM ENGINEERING PAX: c96n2A3 6 S13 T1S R14W SEWARD MERIDIAN , ALASKA ', of 1 �� EMAIL: SAMCLANE�MCUINECG COA9 NINILCHIK UNIT DIONNE-PAXTON P.A. ‘, 1N-14W 1N-13W 1S-14W IS-13W L. 1 NO7171;;X::Cti r.1 44 42141 r.. ..441.111ar / 141.70.2.1 Iteirf , fl fir t )071120/734rItyl, rr xvortaf.. 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LJ , ', i_TIFE: 1 Centrifuge module M MARATHON Oil Company BAKER L ocation: Cook Inlet, Alaska (Kenai Penninsula) Slot: slot #3 q �yp� " Field: Ninilchik Field (NAD83) Well: Paxton #3 HUGHES MARATHON Facility: Paxton Wellbore: Paxton #3 Plot reference wellpath is Paxton #3 Version #9A True vertical depths are referenced to Glacier #1 (RKB) Grid System: NAD83 / TM Alaska State Plane, Zone 4 (5004), US feet Measured depths are referenced to Glacier #1 (RKB) North Reference: True north Glacier #1 (RKB) to Mean Sea Level: 171 feet Scale: True distance Mean Sea Level to Mud line (Facility: Paxton): 0 feet Depths are in feet Coordinates are in feet referenced to Slot Created by: jonethoh on 12/18/2009 Location Information Facility Name Grid East (USft) Grid North (USft) Latitude Longitude Paxton 1349365.170 2231045.670 60 0 05'51.066 "N 151°35'41.247"W Slot Local N (ft) Local E (ft) Grid East (USft) Grid North (USft) Latitude Longitude slot #3 - 709.52 - 2929.74 1346419.180 2230407.050 60 0 05'44.075 "N 151°36'39.026"W Comment 4- Dec -09 : As -Built Survey provided by R Lawson Glacier #1 (RKB) to Mud line (Facility: Paxton) 171ft Mean Sea Level to Mud line (Facility: Paxton) Oft Glacier #1 (RKB) to Mean Sea Level 171ft Well Profile Data Design Comment MD (ft) Inc ( Az ( TVD (ft) Local N (ft) Local E (ft) DLS ( °/100ft) VS (ft) RKB 171' 0.00 0.000 353.715 0.00 0.00 0.00 0.00 0.00 KOP 200.00 0.000 353.715 200.00 0.00 0.00 0.00 0.00 End of Build 1810.11 80.506 353.715 1330.22 951.14 - 104.75 5.00 956.89 Begin Angle Drop 3687.52 80.506 353.715 1639.90 2791.71 - 307.45 0.00 2808.58 Beluga B1 - End of Drop 4137.40 62.512 353.455 1782.00 3213.96 - 354.87 4.00 3233.49 Begin 2nd Drop 4542.77 62.512 353.455 1969.10 3571.22 - 395.86 0.00 3593.09 Beluga B2 Horizon 5360.48 37.791 353.455 2489.00 4190.09 - 466.86 3.02 4216.02 End of Final Drop 5430.47 35.691 353.455 2545.09 4231.69 - 471.63 3.00 4257.89 7154.13 35.691 353.455 3945.00 5230.74 - 586.25 0.00 5263.49 TD 7314.13 35.691 353.455 4074.95 5323.47 - 596.89 0.00 5356.83 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 12 1/4" Open Hole 0.00 2500.00 2500.00 0.00 1444.02 0.00 0.00 1627.49 - 179.23 Paxton #3 9 5/8" Casing 0.00 2500.00 2500.00 0.00 1444.02 0.00 0.00 1627.49 - 179.23 Paxton #3 8 1/2" Open Hole 2500.00 7314.13 4814.13 1444.02 4074.95 1627.49 - 179.23 5323.47 - 596.89 Paxton #3 4 1/2" Liner 2300.00 7314.13 5014.13 1411.03 4074.95 1431.42 - 157.64 5323.47 - 596.89 Paxton #3 Targets Name MD (ft) TVD (ft) Local N (ft) Local E (ft) Grid East (USft) Grid North (USft) Latitude Longitude Pax3 Beluga B1 Tgt1 (NAD83) 11- Sep -09 1782.00 3265.28 - 354.87 1346144.00 2233680.00 60 °0616.233 "N 151 0 36'46.026"W Pax3 Beluga B2 Tgt2 (NAD83) 11- Sep -09 2489.00 4176.09 - 457.04 1346064.05 2234593.02 60 0 06'25.203 "N 151 0 36'48.042 "W Pax3 MOC T1 Tgt3 (NAD83) 11- Sep-09 3471.00 4893.37 - 537.48 1346001.11 2235312.05 60 0 06'32.268 "N 151 °36'49.630 "W Pax3 Base T1 (NAD83) Rvsd 18- Dec -09 3843.00 5154.74 - 566.87 1345978.10 2235574.06 60 0 06'34.842 "N 151 0 36'50.210"W Bottom Hole Location MD (ft) Inc (°) Az ( TVD (ft) Local N (ft) Local E (ft) Grid East (sry ft) Grid North (sry ft) Latitude Longitude 7314.13 35.691 353.455 4074.95 5323.47 - 596.89 1345952.20 2235743.47 60 0 06'36.504 "N 151°36'50.803"W MARATHON Oil Company BAKE labl R L ocation: Cook Inlet, Alaska (Kenai Penninsula) Slot. slot #3 Field: Ninilchik Field (NAD83) Well: Paxton #3 HUGHES MARATHON Facility: Paxton Wellbore: Paxton #3 Easting ft Scale inch =800n g ( ) -1200 -800 -400 0 Plot reference wellpath is Paxton #3 Version #9A x 5600 True vertical depths are referenced to Glacier #1 (RKB) Grid System: NAD83 / TM Alaska State Plane, Zone 4 (5004), US feet t, Measured depths are referenced to Glacier #1 (RKB) North Reference: True north TD 4 1 /z" Liner Rax3 Base Ti Base T1 Horizon 5200 Glacier #1 (RKB) to Mean Sea Level: 171 feet Scale: True distance (NAD83) Rvsd 18- Der. -09 Mean Sea Level to Mud line (Facility: Paxton): 0 feet Depths are in feet ax3 MOC r Tgt3T1 Horizon Coordinates are in feet referenced to Slot Created by: jonethoh on 12/18/2009 NAD03■ 11 -Sep-09 4800 4400* -500 - Beluga 82 T End of Final Dro M (NA Pax3 B (NAM) 11 -Se 09 Beluga B2 Horizon p G 0 .- , RKB 171' 4000 KOP 5.00° 500 - Begin 2nd Drop - 3600 20.00° " 5.0071008 35.00° Beluga B1 Horizon 1000 - Beluga B1 - End of Drop 3200 50.00° = Pax3 Beluga B1 Tgtl ;NAD83; 1 - Sep - 09 65.00' = Z _ End of Build 0 80. -.0 9 5/8" Casing 1500 - -"G" Begin Angle Drop - 2800 = 0- t Begin Angle Drop (A n. 80.51° - 4.00 ° /100ft N 68.01° c o Pax3 Beluga B1 Tgt! Beluga B1 - End of Drop NAD83)' 1 Sep - 09 2000 - 62.51' , Begin 2nd Drop 2400 j 52.92° 3.02 ° /100ft N 43.85° ~ • 2500 - Pax3 Beluga 82 Tgt2 (NAD83) 11 - Sep - 09 Bel a B2 Horizon 200 3 ° /100ft u Ena of Final Drop 3000 - 9 5/8" Casing v 1600 3500 „ Pax3 MOC Ti Tgt3 (NAD83) 1 1 - Seo - 09 T1 Horizon 1200 End of Build - Pax3 Base T1 !NAD83) Rvsd 18 Dec - 09 Base T1 Horizon 800 4000 - TD , 4 1/2" Liner 0 `'f f o n • 4500 ... 400 1 1 1 1 1 1 1 1 1 1 1 1 1 1 0 500 1000 1500 2000 2500 3000 3500 4000 4500 5000 5500 6000 6500 Vertical Section (ft) sceie1 inch =10000 Azimuth 353.60° with reference 0.00 N, 0.00 E KOPot #3 0 RKB 171' Planned Wellpath Geographic Report Report. - , y - 12/18/2009 at 06:55:16 �� Projection System NAD83 / TM Alaska State Plane, Zone 4 (5004), US feet , Ope MARATHON Oil Company �� North Reference �� _ (Kenai - -- '' fh P'YGi ilk 0.999998 =_ Area's Cook Inlet, Alaska Kenai Penninsula Scale - _. (NAD83) �� II III ®� Field �,T Ninilchik Field NAD83 Horizontal Reference Poi Facility Paxton -- Vertical Reference Point Glacier #1 (RKB) Slot 131� MD Reference Point 3 Well ;`: ; 1=.11111.=1111111 Field Vertical Reference Mean Sea Level Wellbore -r _ .1111111111111 Glacier #1 (RKB) to Facility Vertical Datum ` MillEMII Wellpath Paxton #3 Version #9A - - -- Glacier #1 (RKB) to Mean Sea Level r r - Wellbore Last Revised 10/04/2007 - - - -- Facility Vertical Datum to Mud Line (Facility) 0.00 ft Sidetrack from (none) - - - -- Section Origin X E 0.00 ft User 1 ■11111111M■MINIIIIIIIIIMINIIIIME Section Origin Y N 0.00 ft Calculation method - -- Section Azimuth EIIMM- -------- Local North Local East Grid East Grid North Latitude Longitude [ft] [ft] [USft] [USft] Slot Location =MIKE - 2929.74 1346419.18 2230407.05 60 °05'44.075 "N 151°36'39.026"W Facility Reference Pt h J ° +;IWPohfiVR I�,�II�IG�'i' O I . t ) tn,r,'` V i 60 °05'51.066 "N MEIIII Field Reference Pt ,?,1 "3) liiiim ]y, t ---- x`'W 2251649.81 60 °09'19.105 "N 151 °28'24.639 "W " NAD 83 coordinate are converted to NAD 27 using C • • • ..0.1 (U A • C. • . • 1 - .114 1111. - - TVD from MD Inclination Azimuth TVD Ftd Ref North East Grid East Grid North DLS Toolface Build Rate Turn Rate Vert Sect Comments [ft] [1 [1 [ft] [ft] [ft] [ft] [sry ft] [sry ft] [ft] [ft] [' /100ft] [1 [ ° /100ft] [1100ft] [ft] 0.00 0.00 ® 0.00 =pm= 0.00 0.00 ' 1346419.18 2230407.05 206399.718 2230648.159 0.00 0.00 0.00 0.00 0.00 100.00 0.00 ® 100.00 MEM. 0.00 0.00 1346419.18 2230407.05 MCIEZEIM 2230648.159 0.00 0.00 0.00 0.00 0.00 200.00 0.00 ® 200.00 29.00 0.00 0.00 1346419.18 2230407.05 111=MMEEIMEE 0.00 MK. 0.00 0.00 0.00 300.00 111111:1111WEESE 299.87 NEEEENmEm -0.48 1346418.81 ligE1=1 206399.348 2230652.499 Num 0.00 MEM 0.00 4.36 400.00 10.00 ® 398.99 MINEM®i -1.91 1346417.70 2230424.40 206398.239 2230665.508 EMI. 0.00 MEM 0.00 MEM 500.00 INEcommagm 496.58 groximErnm -4.27 1346415.85 2230445.95 206396.39 2230687.058 =cm 0.00 Eli= 0.00 600.00 20.00 353.72 591.93 mmum 68.69 -7.56 1 1346413.29 EMEION 206393.831 2230717.017 MEM 0.00 maim 0.00 69.11 700.00 siEgumompou 684.28 IMEMEAMMOMMI -11.75 ' 1346410.03 .52=3. 206390.573 MEMINEEMMEMI 0.00 mom 0.00 800.00 30.00 353.72 772.96 601.96 152.60 -16.81 1346406.10 2230560.01 206386.646 2230801.114 5.00 0.00 MEM 0.00 900.00 35.00 353.72 KM. 686.27 205.99 MEIMME1=DEMESEEZEI 206382.068 .52=inaIM 0.00 MEM 0.00 MEM 1000.00 40.00 ® 936.58 =ME 266.48 MM. 1346396.34 206376.891 MEEMEEMMIDE 0.00 MEM 0.00 268.09 1100.00 45.00 ® 1010.28 839.28 MEM -36.74 1346390.58 r t 0.00 mum 0.00 1200.00 50.00 ®EENIN 906.82 406.88 -44.81 1346384.30 2230814.90 206364.859 WEEMEMMICOM 0.00 MEM 0.00 1300.00 IMEMMIESEM 1138.68 967.68 mom= -53.49 1346377.54 2230893.92 EMEMEWEEMMEMMEM 0.00 MEM 0.00 488.64 1400.00 60.00 ®NNEEREamommosis -62.72 1346370.36 2230977.92 MaiMall 2231219.011 IMEM 0.00 IIECIII 0.00 mzcjIIIIIIIIIMIIIMIIIIMIIIIIIMIII 1500.00 65.00 ®EMEESEDMESEWIMMMEM 1346362.80 2231066.27 M=EMENEEMEEMEMI 0.00 mgcm 0. 00 661.63 1600.00 70.00 353 t®:MBEIMEIELEMIEEMECE 206335.506 MEMEM1111111111EM 0.00 MEM 0.00 _ 1700.00 =ECM 353.72 1306.87 �� 1346346.81 r r 206327.391 2231494.372 0.00 =cm 0.00 849.33 1800.00 80.00 ®EMEIN®MEM - 103.66 1346338.49 EiMMEEM 206319.076 2231591.609 MX= 0.00 =cm 0.00 946.93 :®rwnEm®mamEmmaimmEnz. - 104.75 1346337.64 2231360.46 MECEMMEI 2231601.538 =cm 0.00 5.00 0.00 956.89 1900.00 6,J.1 *WiK1.1IV&N.J(*1tWI6 1346330.09 2231448.80 206310.681 MEE=E 0.00 0.00 0.00 0.00 ELLEENIM 2000.00 ®ogirgammun® - 125.25 1346321.68 MEM. 206302.276 KEE=EM 0.00 0.00 0.00 0.00 2100.00 353.72 Minn 1207.04 Eng= - 136.05 1346313.28 2231645.34 206293.881 2231886.409 0.00 0.00 0.00 0.00 1242.81 2200.00 9%W#omai®mumeng - 146.84 1346304.88 MEEMa. 206285.486 MEGEIME 0.00 0.00 0.00 0.00 2300.00 80.51 ®Eami 1240.03 mum �[�� gmagil 206277.081 2232082.943 0.00 0.00 0.00 0.00 111=in 2400.00 80.51 ®MO4I.t M 1256.52 EMCEE 1346288.07 ®' t 206268.686 2232181.21 0.00 0.00 0.00 0.00 ®: r 2500.00 ® mEggammEmiEsEEE. 1346279.66 NEEE=1 206260.281 MEMMIEEM 0.00 0.00 0.00 0.00 Nufign 2600.00 ®umnimmum® - 190.03 EMMEN 2232136.69 206251.886 2232377.744 0.00 0.00 0.00 0.00 2700.00 ®� 1306.01 - 200.83 1346262.86 206243.491 ® 0.00 0.00 0.00 0.00 2800.00 IIJ.1 !*Wi!t6J4IK41II 1F9 1U* i : • 0.00 0.00 0.00 0.00 2900.00 80.51 ® 1510.00 1339.00 2019.64 ESSEM 1346246.05 REEMBEE 206226.691 MEIMMEN 0.00 0.00 0.00 0.00 r® 3000 :'® ®MEEMEMMEESEMESIZIE®EEBEEKE 206218.286 MEEKIMIll 0.00 0.00 0.00 0.00 ENEXEIIIIII 3100.00 ®nammomEggE®mEaum 2232628.05 206209.891 MS=ELIE 0.00 0.00 0.00 0.00 majem 3200.00 MICEMINEEMMEMIR 9%W#1388.48 opmags - 254.81 1346220.83 EEEENEE 206201.486 2232967.355 0.00 0.00 0.00 0.00 2327.74 3300.00 9W#mmEN 1404.98 MEEll - 265.61 1346212.43 MEM. 206193.091 MEE=EM 0.00 0.00 0.00 0.00 BMW 3400.00 80.51 353.72 1592.47 1421.47 2509.83 - 276.40 1346204.03 2232922.86 206184.696 2233163.889 0.00 0.00 0.00 0.00 2525.00 3500.00® 1608.97 mom 2607.87 I - 287.20 1346195.62 206176.291 IMEEEMEIS 0.00 0.00 0.00 111131IMMEM 3600 ®MEEZEM IEMEN - 295.00 IMEMESEEM=M=IMMEMEME 0.00 0.00 0.00 INIMMEMEEM MEMEal4'Jm® 1639.90 1468.90 maffiEENEEEN 1346179.86 EgEozug 206160.54 MEEE=M 0.00 MEM 0.00 0.00 2808.58 3700.00 80.01 ®mumanwin. 2803.93 - 308.79 1346178.81 ESZEIZEI 206159.491 REE=Imanneumuzimmin. 2820.88 3800.00 MECEIMIEZEM 1662.79 1491.79 2901.14 - 319.55 1346170.42 EMMEN 206151.106 mammonErzmussiximmumnim 2918.68 iMMINIIII 3900.00 72.01 MEM 1690.33 maim 2996.65 - 330.22 1346162.09 2233410.85 2233651.863 4.00 - 179.22 =Km -0.06 3014.79 4000.00 68.01 nEemommEs® 3090.02 ®r ' 2233504.44 206134.536 migagrummommisuER -4.00 -0.06 3108.74 Page 1 of 2 TVD from MD Inclination Azimuth TVD Fld Ref North East Grid East God North DLS Toolface Build Rate Turn Rate Vert Sect Comments [ft] [1 [1 [ft] [ft] [ft] [ft] [sry ft] [sry ft] [ft] [ft] (° /i00ft] (°] [0/100ft] [°/100ft) [ft] 4100.00 64.01 353.48 1765.17 1594.17 3180.77 - 351.07 1346145.73 2233595.42 206126.43 2233836.427 4.00 - 179.18 -4.00 -0.06 3200.08 4137.40 _1 62.51 353.46 1782.00 1611.00 3213.96 - 354.87 1346142.74 2233628.69 206123.442 2233869.696 4.00 0.00 -4.00 -0.06 3233.49 Beluga B1 Horizon 4200.00 62.51 353.46 1810.89 1639.89 3269.13 - 361.20 1346137.76_ 2233684.00 206118.465 2233925.004 0.00 0.00 0.00 0.00 3289.02 4300.00 l 62.51 353.46 1857.05 1686.05 3357.26 - 371.31 1346129.80 2233772.35 206110.509 2234013.352 0.00 0.00 0.00 0.00 3377.73 4400.00 62.51 353.46 1903.20 1732.20 3445.39 - 381.42 ' 1346121.84 2233860.70 206102.554 2234101.699 0.00 0.00 0.00 0.00 3466.44 4500.00 62.51 353.46 1949.36 1778.36 3533.52 - 391.53 1346113.88 2233949.05 206094.598 2234190.046 0.00 0.00 0.00 0.00 3555.15 __ 4542.77 62.51 353.46 1969.10 1798.10 3571.22 - 395.86 1346110.47 2233986.84 206091.19 2234227.835 0.00 180.00 0.00 0.00 3593.09 4600.00 60.78 353.46 1996.28 1825.28 3621.25 - 401.60 1346105.95 2234037.00 206086.673 2234277.993 3.02 180.00 -3.02 0.00 3643.45 4700.00 57.76 353.46 2047.37 1876.37 3706.64 - 411.39 1346098.24 2234122.60 206078.967 2234363.591 3.02 180.00 -3.02 0.00 3729.40 4800.00 54.74 353.46 2102.93 1931.93 3789.23 - 420.87 ' 1346090.78 2234205.40 206071.511 2234446.388 3.02 180.00 -3.02 0.00 3812.53 4900.00 51.71 353.46 2162.79 1991.79 3868.80 - 430.00 1346083.59 2234285.17 206064.325 2234526.156 3.02 180.00 -3.02 0.00 3892.62 5000.00 48.69 353.46 2226.79 2055.79 3945.12 - 438.75 1346076.70 2234361.68 206057.439 2234602.663 3.02 180.00 -3.02 0.00 3969.44 5100.00 45.67 353.46 2294.76 2123.76 4017.98 - 447.11 1346070.12 2234434.72 206050.863 2234675.701 3.02 180.00 -3.02 0.00 , 4042.78 5200.00 42.64 353.46 2366.50 2195.50 4087.18 - 455.05 1346063.87 2234504.09 206044.616 2234745.069 3.02 180.00 -3.02 0.00 4112.43 5300.00 39.62 353.46 2441.81 2270.81 4152.52 - 462.55 1346057.97 2234569.59 206038.72 2234810.567 3.02 180.00 -3.02 0.00 4178.20 5360.48 37.79 353.46 2489.00 2318.00 4190.09 - 466.86 1346054.57 2234607.26 206035.322 2234848.235 3.02 180.00 -3.02 0.00 4216.02 Beluga B2 Horizon 5400.00 36.61 353.46 2520.48 2349.48 4213.83 - 469.58 1346052.43 2234631.05 206033.183 2234872.025 3.00 180.00 -3.00 0.00 4239.91 5430.47 35.69 353.46 2545.09 2374.09 4231.69 - 471.63 1346050.82 2234648.96 206031.574 2234889.934 3.00 0.00 -3.00 0.00 4257.89 5500.00 35.69 353.46 2601.56 2430.56 4271.98 - 476.26 1346047.18 2234689.36 206027.936 2234930.333 0.00 0.00 0.00 0.00 4298.45 5600.00 35.69 353.46 2682.77 2511.77 4329.94 - 482.91 j 1346041.94 2234747.46 206022.699 2234988.431 0.00 0.00 0.00 0.00 4356.79 AB 1 5700.00 35.69 353.46 2763.99 2592.99 4387.91 - 489.56 1346036.71 2234805.57 206017.472 2235046.539 0.00 0.00 0.00 0.00 4415.13 5800.00 35.69 353.46 2845.21 2674.21 4445.87 - 496.21 1346031.47 2234863.67 206012.235 2235104.637 0.00 0.00 0.00 0.00 4473.47 _ 5900.00 -1 35.69 353.46 2926.43 2755.43 4503.83 - 502.86 1346026.24 2234921.78 206007.008 2235162.746 0.00 0.00 0.00 0.00 4531.81 6000.00 i 35.69 353.46 3007.64 2836.64 4561.79 - 509.51 1346021.00 2234979.88 206001.771 2235220.844 0.00 0.00 0.00 0.00 4590.15 6100.00 35.69 353.46 3088.86 2917.86 4619.75 - 516.16 1346015.76 2235037.99 205996.533 2235278.952 0.00 0.00 0.00 0.00 4648.49 6200.00 35.69 353.46 3170.08 2999.08 4677.71 - 522.81 1346010.53 2235096.10 _ 205991.306 2235337.06 0.00 0.00 0.00 0.00 4706.84 6300.00 35.69 353.46 3251.30 3080.30 4735.67 - 529.46 1346005.29 2235154.20 205986.069 2235395.158 0.00 0.00 0.00 0.00 4765.18 6400.00 35.69 353.46 3332.51 3161.51 4793.63 - 536.11 I 1346000.06 2235212.31 205980.842 2235453.266 0.00 0.00 0.00 0.00 4823.52 6500.00 35.69 353.46 3413.73 3242.73 4851.59 - 542.76 I 1345994.82 2235270.41 205975.605 2235511.365 0.00 0.00 0.00 0.00 4881.86 6570.51 35.69 353.46 3471.00 3300.00 4892.46 - 547.44 1345991.13 2235311.38 205971.917 2235552.333 0.00 0.00 0.00 0.00 4923.00 Ti Horizon 6600.00 35.69 353.46 3494.95 3323.95 4909.56 - 549.41 1345989.59 2235328.52 205970.378 2235569.473 0.00 0.00 0.00 0.00 4940.20 6700.00 35.69 353.46 3576.17 3405.17 4967.52 - 556.06 1345984.35 2235386.62 205965.141 2235627.571 0.00 0.00 0.00 0.00 4998.54 6800.00 35.69 353.46 3657.38 3486.38 5025.48 - 562.71 1345979.12 2235444.73 205959.914 2235685.679 0.00 0.00 0.00 0.00 5056.88 6900.00 35.69 353.46 3738.60 3567.60 5083.44 - 569.36 1345973.88 2235502.84 205954.677 2235743.787 0.00 0.00 0.00 0.00 5115.22 7000.00 35.69 353.46 3819.82 3648.82 5141.40 - 576.01 1345968.65 2235560.94 205949.45 2235801.886 0.00 0.00 0.00 0.00 5173.57 7028.54 35.69 353.46 3843.00 3672.00 5157.94 - 577.90 1345967.15 2235577.53 205947.951 2235818.475 0.00 0.00 0.00 0.00 5190.22 Base T1 Horizon 7100.00 35.69 353.46 3901.04 3730.04 5199.36 - 582.66 1345963.41 2235619.05 205944.213 2235859.994 ' 0.00 0.00 0.00 0.00 5231.91 7154.13 35.69 353.46 3945.00 3774.00 5230.74 - 586.25 1345960.58 2235650.50 205941.385 2235891.443 0.00 0.00 0.00 0.00 5263.49 7200.00 35.69 353.46 3982.25 3811.25 5257.32 - 589.31 1345958.17 2235677.15 205938.976 2235918.092 0.00 0.00 0.00 0.00 5290.25 7300.00 35.69 353.46 4063.47 3892.47 5315.28 - 595.96 1345952.94 2235735.26 205933.749 _ 2235976.2 0.00 0.00 0.00 0.00 5348.59 _ 7314.13 I 35.69 353.46 4074.95 3903.95 5323.47 - 596.89 1345952.20 2235743.47 205933.009 2235984.41 0.00 0.00 0.00 0.00 5356.83 TD • Page 2 of 2 ilikA Planned Well path Report p P MAI Paxton #3 Version #9A BAKER MARATHON Page 1 of 5 HUGHES REFERENCE WELLPATH IDENTIFICATION Operator M ARATHON . ,... __. _...... .. ...,__ ....H.x_ Oil Company Slot slot #3 Area Cook Inlet, Alaska (Kenai Penninsula) Well Paxton #3 Field Ninilchik Field (NAD83) Wellbore Paxton #3 Facility Paxton 1 REPORT SETUP INFORMATIO 1 _ stem �� NAD83 / TM Alaska S tate Plane, Zone 4 ..r� � � �� — � � � � Projection Sy (5004), US feet Software System WellArchitect® 2.0 North Reference True User Jonethoh Scale 0.999998 Report Generated 12/18/2009 at 10:13:54 Convergence at slot 1.40° West Database /Source file WA_Anchorage /Paxton_ #3.xml WELLPATH :LOCATION Local coordinate �� Grid coordinates Geographic coordinates North[ft] East[ft] Easting[USft] Northing[USft] Latitude Longitude Slot Location - 709.52 - 2929.74 1346419.18 2230407.05 60 °05'44.075 "N 151 °36'39.026 "W Facility Reference Pt 1349365.17 2231045.67 60 °05'51.066 "N 151°35'41.247"W Field Reference Pt 1371967.44 2251649.81 60 °09'19.105 "N 151 °28'24.639 "W E L PATH DATUM .. . KB _ � � �.. _, , _ - Calculation method Minimum curvature Glacier #1 (R) to Facility Vertical Datum 171.00ft Horizontal Reference Pt Slot Glacier #1 (RKB) to Mean Sea Level 171.00ft Vertical Reference Pt Glacier #1 (RKB) Facility Vertical Datum to Mud Line (Facility) 0.00ft MD Reference Pt Glacier #1 (RKB) Section Origin N 0.00, E 0.00 ft Field Vertical Reference Mean Sea Level Section Azimuth '353.60° Planned Wellpath Report MA Paxton #3 Version #9A BAKER MARATHON Page 2 of 5 HUGHES REFERENCE ON WELL IDENTIFICAT Operator MARATHON Oil Company Slot slot #3 Area Cook Inlet, Alaska (Kenai Penninsula) Well Paxton #3 Field Ninilchik Field (NAD83) Wellbore Paxton #3 ,,Facility Paxton ELLPATH DATA 84 stations = inte • olated/extra 1 olated station MD Inclination UM TVD Mill North MI Grid East Grid North DLS Build Rate Turn Rate Comments ft ° ft ft sry ft sry ft ° /100ft ° /I00ft ° /100ft 0.00 0.000 IIIIMEB 0.00 0.00 0.00 0.00 1346419.18 2230407.05 0.00 0.00 0.00 RKB 171' 100.00 0.000 353.715 100.00 0.00 0.00 0.00 1346419.18 2230407.05 0.00 0.00 0.00 11111111111111' 200.00 0.000 IIIMMIM 200.00 0.00 0.00 0.00 1346419.18 2230407.05 0.00 0.00 0.00 OP 300.00t 5.0001111MEM 299.87 4.36 4.33 -0.48 1346418.81 2230411.39 5.00 5.00 0.00 } ,. t 1 = ! i.i i - - ; i 4i 2 1 1ii` ' 1 r. �.,::.:..:.,� . . - .. .. 3'9!$x- - ,,. � �.��, :. 1.305 �,.._ .. x.9 = ..� ^ ff� _'�� 5. �.�� . _. 500.00 15.000111WHE 496.58 39.05 38.81 -4.27 1346415.85 2230445.95 5.00 5.00 0.00 600.001' 20.00011MENE 591.93 69.11 68.69 -7.56 1346413.29 2230475.91 5.00 5.00 0.00111111111111111111 700.00 25.000 MEMO 684.28 107.36 106.72 MEM 1346410.03 2230514.02 5.00 5.00 0.00 alliIllillM 800.001' 30.000 772.96 11.11Blia 152.60 -16.81 1346406.10 ! 2230560.01 5.00 5.00 0.00 a `; s :i .r ,�i 7 :nv 1 ''''SS-717-12-11..74 , i ce.. 1000.00 40.000 t 936.58 268.09 266.48 -29.35 1346396.34 2230674.17 5.00 5.00 0.00 1100.00 45.000 1010.28 335.63 333.61 -36.74 1346390.58 2230741.46 5.00 5.00 0.00 1200.00 50.000 =ME 1077.82 409.33 406.88 -44.81 1346384.30 2230814.90 5.00 5.01 0.00 1300.00 55.00011111ESE 1138.68 488.64 485.71 -53.49 1346377.54 2230893.92 5.00 5.01 0 001 _. .... +..:� �_.;. � i i l i 1500.00 65.000 1238.55 661.63 657.65 -72.43 1346362.80 2231066.27 5.00. 5.00 0.00 1600.00 70.000 1276.81 753.99 749.46 -82.54 1346354.93 2231158.29 5.00 5.00 0.00 1700.00 75.000 MEI= 1306.87 849.33 844.23 -92.97 1346346.81 2231253.29 5.00 5.00 0.001 1800.001` 80.000° 353.715 1328.51. 946.93 i 941.24' -103.66 1346338.49 2231350.53 5.00 5.00 0.0011111111111111 1810.11 80.506 35. , . T33l - 95'6.89 951.14 104.75 1346337.64 231 ,., ,» O 7 - ' - :.1'�. ,, a ._ ° d.4 IIIIII r. 1900.00f 80.506 353.715 1345.05. 1045.55 ; 1039.27 - 114.45 ' 1346330.09 2231448.80 0.00 0.00 0.00IIII 2000.00 80.506 litlang 1361.54 1144.18 1137.31 - 125.25 1346321.68 2231547.07 0.00 0.00 0.00r IIIIIIIIIIIIIIIIIIIIIIIM 2100.00 80.506 353.715 1378.04 1242.81 1235.34 - 136.05 1346313.28 2231645.34 0.00 0.00 0.00 IIIIIIMIIIIIIM 2200.00 80.506 EMU 1394.53 1341.44 1333.38 - 146.84 1346304.88 2231743.61 0.00 0.01 0.00 IIIIIIIIIIIII 11'2 i s �� R """`°' : a :: ! 3# iii i t1 _i 2400.00 80.506 MINBEEKE 1427.52 1538.70 1529.46 - 168.44 1346288.07 2231940.15 0.00 0.00 0.00 2500.00 80.506CSE 1444.02 1637.33 1627.49 - 179.23 1346279.66 2232038.42 0.00 0.00 0.00 IIIIIIIIIIMI 2600.001' 80.506 =Ma 1460.51 1735.96 =Mal - 190.03 1346271.26 2232136.69 0.00 0.00 0.00 2700.00 80.506 1477.01 1834.59 1823.57 - 200.83 1346262.86 2232234.96 0.00 0.00 0.00 ''''..! >' : '' 1 , 2 - - 7 5441' 223. 000 i . i t 4,13 g ' °° t : Planned Wellpath Report Paxton #3 Version #9A BAKER MARATHON Page 3 of 5 HUGHES REFERENCE WELL`HIDENTIFICATION Operator MARATHON Oil Company Slot slot #3 lArea Cook Inlet, Alaska (Kenai Penninsula) Well Paxton #3 Field Ninilchik Field (NAD83) Wellbore Paxton #3 ;Facility Paxton ELLPATH DATA (84 stations)_ t interpolated/extrapolated station MD Inclination Azimuth ^. TVD Vert Sect North East Grid East Grid North DLS Build Rate Turn Rate omments ]ft] [ I _ . lft] Ifs [ft] [ft] [sry ft] Isry ft] [ ° /100ft] l °/100ft] 1 ° /100ft] 2900.00 80.506 353.715 1510.00 2031.85 ! 2019.64 - 222.42 ` 1346246.05 2232431.51 0.00 0.00 0.00 3000.00t 80.506 353.715 1526.49 2130.48 2117.68 - 233.22 1346237.64 2232529.78 0.00 0.00 0.00 3100.00t 80.506 353.715 1542.99 2229.11 2215.72 - 244.01 1346229.24 2232628.05 0.00 0.00 0.00 3200.001 80.506 353.715 155 2327.74 2313.76 - 254.81 1346220.83 2232726.32 0.00 0.00 0.00 80.506 _ 353.71- x:.2426.37 ` 2411.79 - 265.61 ; 13 � * .� , � ,,. �t t ,� ...3 ._... 3400.00t 80.506 353.715 1592.47 2525.00 = 2509.83 - 276.40 1 1346204.03 2232922.86 0.00 0.00 0.00 3500.00 80.506 353.715 1608.97 2623.63 2607.87 - 287.20 1346195.62 2233021.13 0.00 0.00 0.00 3600.00 80.506 353.715 1625.46 2722.26 2705.91 - 298.00 1346187.22 2233119.40 0.00 0.00 0.00 3687.52 ' 80.506 353.715 1639.90; 2808.58 2791.71 - 307.45 1346179.86 2233205.42 0.00 0.00 0.00,: Angle Drop 3791).00t 80 ,0,07 ;; .353.709= 1642.01 • 2" '� "� ,y�'..^�<� .<'.:,._ 1, �,t � � _�� a, ., u 3800.00t 76.007 353.655 1662.79 2918.68 2901.14 i », », - 319.55 1346170.42 2233315.10 4.00 -4.00 -0.05 3900.00 72.007 353.599 1690.33 3014.79 2996.65 - 330.22 1346162.09 2233410.85 4.00 -4.00 -0.06! 4000.00 68.008 353.541 1724.52 3108.74 3090.02 - 340.74 1346153.84 2233504.44 4.00 -4.00 0.061 4100.00 64.008 353.47' 1765.17 3200.08 3180.77 - 351.07 1346145.73 2233595.42 4.00 -4.00 -0.06 33-.491 ; 3213.96 -354.8 I346142.74 2233628.6** 4200.00t 62.512 353.455 1810.89 3289.02 3269.13 - 361.20 1346137.76 2233684.00 0.00 0.00 0.00 4300.00t 62.512 353.455 1857.05 3377.73 3357.26 -371.31 1346129.80 2233772.35 0.00 0.01 0.00 4400.00 62.512 353.4551 1903.20 3466.44 3445.39 - 381.42 1346121.84 2233860.70 0.00 0.01 0.00 4500.00 62.5121 353.455 1949.36 3555.15 3533.52 - 391.53E 1346113.88 ' 2233949.05 0.00 0.00 0.00( 15 r2 , 353.455 1969.10 3593.09 3571.22 - 395.86 1346110.47 2233986.84 0.00 0.00 0.003 _ - 4600.00 60.782 353.455 1996.28 3643.45 3621.25 - 401.60 1346105.95 2234037.00 3.02 ! -3.02; 0.00' 4700.00 57.759 353.455 2047.37 3729.40 3706.64 - 411.39 1346098.24 2234122.60 3.02 -3.02 0.00' 4800.00 54.735 353.455 2102.93 3812.53 3789.23 - 420.87 1346090.78 2234205.40 3.02 -3.02 0.00 4900.00 MINFORS 353.455 2162.79 3892.62 3868.80 - 430.00 1346083.59 2234285.17 3.02 -3.02 0.00 5100.00t 45.666 353.455 2294.76 4042.78 4017.98 - 447.11 1346070.12 2234434.72 3.02 . -3.02 0.00 - 5200.00 42.643. 353.455 2366.50 4112.43 4087.18 - 455.05 1346063.87 2234504.09 3.02 -3.02 0.00! 5300.00t 39.619 353.455 2441.81 4178.20 4152.52 - 462.55 1346057.97 2234569.59 3.02 -3.02 0.00 5360.48 37.791 353.455 2489.00 4216.02 4190.09 - 466.86 1346054.57 2234607.26 3.02 -3.02 0.00 : eluga B2 Horizon; Beluga B2 Horizon agriAk q . Planned Wellpath Report V Paxton #3 Version #9A BAKER TI1 Page4of5 HUGHES REF ;.CE WELL- IDENTIFICATION 'Operator MARATHON Oil Company Slot slot #3 Area Cook Inlet, Alaska (Kenai Penninsula) Well Paxton #3 Field Ninilchik Field (NAD83) Wellbore Paxton #3 ;Facility Paxton 1 ' WELLPATH DATA 84 stations c = inte olated/extra I olated station MD Inclination TVD North East Grid East Grid North DLS Build Rate Turn Rate omments ft ° ft ft ft sry ft sry ft °/100ft °/100ft °/100ft 5430.47 ! 35.691 353.455 2545.09 " 4257.89 4231.69 - 471.63 1346050.82 2234648.96 3.00 -3.00 0.001 nd of Final Drop 5500.001 35.691 353.455! 2601.56 4298.45 4271.98 - 476.26 1346047.18 2234689.36 0.00 0.00 0.00 5600.001 35.691 353.455 2682.77 4356.79 4329.94 - 482.91 1346041.94 2234747.46 0.00 0.00 0.00 5700.001 35.691 353.455 2763.99 4415.13 4387.91 - 489.56 " 1346036.71 2234805.57 0.00 0.00 0.00 1 . _ &.691 ......... ...' .... 2845.21 4473.47 4445.87 -496.21 ' 1 'Mt 1 2234g61,67 0.04) t 4 .,., t 'i• =," 5900.001 35.691 353.455' 2926.43. 4531.81 , 4503.83 - 502.86 1346026.24 2234921.78 0.00 0.00 0.00 6000.001 35.691 353.455 3007.64 4590.15 4561.79 - 509.51 1346021.00 2234979.88 0.00 0.00 0.00 6100.001 35.691 353.455 3088.86 4648.49 4619.75 - 516.16 1346015.76 2235037.99 0.00 0.00 0.00 6200.00 35.691 353.455 3170.08 4706.84 46 - 522.81 1346010.53 2235096.10 0.00 0.00 0.00 6400.00 35.691 353.4551MM 4823.52 4793.63 - 536.11 1346000.06 111111111EBEIVall 0.00 0.00 0.00®1 6500.001 35.691 353.455 3413.73 4881.86 4851.59 - 542.76 1345994.82 2235270.41 0.00 0.00 0.00 6570.511 35.691 353.455 3471.00 4923.00 4892.46 - 547.44 1345991.13 2235311.38 0.00 0.00 0.00 1 Horizon 6600.00 35.691 353.455 3494.95 4940.20 4909.56 - 549.41 1345989.59 2235328.52 0.00 0.00 0.00 6800.00 35.691 353.455 3657.38 5056.88 5025.48 - 562.71 1345979.12 2235444.73 0.00 0.00 0.00 6900.001 35.691 353.455 3738.60 5115.22 5083.44 - 569.36 1345973.88 2235502.84 0.00 0.00 0.00 7000.001 35.691 353.455 3819.82 5173.57 5141.40 - 576.01 1345968.65 2235560.94 0.00 0.00 0.00 7028.54 35.691 353.455 3843.00 5190.22 5157.94 - 577.90 1345967.15 ` 2235577.53 0.00 0.00 0.00 ease T1 Horizon 199.36 .5477.•_ ,r a s: !,41,_ 1 1 FUw .au 7154.13 35.691 353.455 3945.00 5263.49 5230.74 - 586.25 1345960.58 ' 2235650.50 0.00 0.00 0.00 7200.00 35.691 353.455 3982.25 5290.25 5257.32 - 589.31 1345958.17 2235677.15 0.00 0.00 0.00 7300.00 35.691 353.455 4063.47 5348.59 5315.28 - 595.96 1345952.94 2235735.26 0.00 0.00 0.00 7314.13 35.691 353.455 4074.95 5356.83 5323.47 - 596.89 1345952.20 2235743.47 0.00 0.00 0.00 10 M Planned Wellpath Report RIO Paxton #3 Version #9A BAKE R MARATHON Page 5 of HUGHES REFERENCE WELL PATH IDENTIFICATION ■ ;Operator MARATHON Oil Company Slot slot #3 Area Cook Inlet, Alaska (Kenai Penninsula) Well Paxton #3 ;Field Ninilchik Field (NAD83) Wellbore Paxton #3 1 Facility Paxton HOLE & CASING SECTIONS Ref Wellbore: Paxton #3 Ref Wellpath: Paxton #3 Version #9A String /Diameter Start MD End MD Interval Start TVD End TVD Start N/S Start E/W End N/S End E/W [ft] [ft] [ft] [ft] [f] [ft] [ft] [ft] [ft] 12.25in Open Hole 0.00 2500.00 2500.00 0.00 1444.02 0.00 0.00 1627.49 - 179.23 i. 9.625in Casing 0.00 2500.00 2500.00, 0.00 1444.02 0.00 0.00 1627.49 - 179.23 -8.5in Open Hole 2500.00 7314.13 4814.13. 1444.02 4074.95 1627.49 - 179.23 5323.47 -596.89 4.5in Liner 2300.00 7314.131 5014.13 1411.03 4074.95 1431.42 - 157.64 5323.47 596.89;_ ' Name MD i TVD North East Grid East Grid North Latitude L ongitude 3 Shape [ft] i _.._ [ ;,, _ [ft] [ft] [srvft] [srvft] ] ! 9 1782.00 3265.281 2233680.00; 60 °06'16.233 "N 151 °36'46.026 "W: circle 1) Pax3 Beluga Bl Tgtl (NAD83) 11-Sep-09 1 Pax3 Beluga B2 Tgt2 (NAD83) 11- Sep -09 2489.001 4176.091 - 457.041 1346064.051 2234593.02[ 60 °06'25.203 "N 151 °36'48.042 "W circle Pax3 MOC Ti Tgt3 (NAD83) 11- Sep -09 3471.00 4893.37 - 537.48 1346001.11 2235312.05 60°06'32.268"N 151 °36'49.630 "W circle 3843.00 5154.74 - 566.87 1345978.10 2235574.06 60°06'34.842"N 151 0 36'50.210 "W: circle Pax3 Base Ti (NAD83) Rvsd 18- Dec -09 SURVEY PROGRAM Ref Wellbore: Paxton #3 Ref Wellpath: Paxton #3 Version #9A Start MD 1 End MD Positional Uncertainty Model Log Name /Comment Wellbore [ft] ft 0.00 2500.00 • nTrak (MagCorr) I' axton #3 2500.00] 7314.13 ' utoTrak G3 (MagCorr) I' axton #3 • • MI i DRILLING '!,_; P ..IUID P O D ''''Aijk:'' „ ---' '' ';'----1---- -----:-:'-'7 1 i,li,.:,1,''11,',':1,1:,:i','I',1!:,::,„'',!',',,:,:,:„:,,, 1 I MARATHON d II - - - Paxton #3 I� I II II II �I I I I II Prepared by: Dwyer Senior Pro I� P Y � � I II I ICI Project Engineer M I SWACO J g �� I Reviewed by: Dallas Rhodes / Rick Morris '!'�' I M -I SWACO Presented to: Rowland Lawson / Will Tank Drilling Engineer Marathon = - • • M!i SWAG Marathon Oil Y Com an : Company PO Box 190168 Anchorage, Alaska 99519 ATTN: Will Tank Will: _ Enclosed is the drilling fluid program for the Paxton 3 well. The following is a brief synopsis of the program. Overview: Paxton #3 is an exploration formations in the Ninilchik loration well targeting Tyonek o P g g Y I spud mud is recommended for the surface interval. Flo -Pro fluid will be used for thei and production intervals. After logging the production interval, the well will be completed with 4 1/2" liner cemented in place. Surface Interval: A standard fresh water Gel /Gelex spud mud will be used. Initial funnel viscosity should be in the 50 _ — 75 sec /qt range. Lower funnel viscosity to 45 — 60 sec /qt after gravel has been drilled. Lower fluid loss to < 10 cc's API prior to running surface casing. Potential fluid losses to the formation may be controlled by additions of G -Seal and/or sized calcium carbonate. G -Seal can also reduce torque in the build area of the surface hole. Production Interval: This interval will be drilled with 3% KCL Flo -Pro fluid. After drilling out the sur face cei; — 25 feet of new hole, the well will be displaced to a new Flo -Pro KC1 fluid. Flue. �1 �„'0,hpuld maintained @ < 6 cc's API for this interval. Potential coal sloughing may requ,i addtttoi off' ', Resinex and / or Asphasol Supreme supplemented with GSeal. 0 ' Completion: This program assumes the well will be completed with 3% KC1 brine. Jim Dwyer Project Engineer /M -I SWACO Reference Wells: Susan Dionne 3, Paxton 1 ram is as a guide only. conditions will always dictate fluid I ��ro erties � II I �edw IIII NOTE: This pros s provided s gu o v v � ri �+��11k . � • • Mfi sIf A - SUMMARY _ EXECUTIVE SU ,itir: Our goal is zero spills and zero incidents and' 00 / p ' 4 compliance while providing fluids and solids controlI a teli r services to Marathon Oil Company. Mi 3W�G The solids van and/ or centrifuge setup at rig will continue to assist in removal of LGS for minimizing mud weight and dumping and dilution of fluids. Disposal costs at G & I facility will be reduced with the use of centrifuge and / or solids van. MI B1ilVAC „ We expect to drill this well for a product co��'��+�t' I�� I '' than $24.54 per foot. II - We estimate the use of less than 4573 b to drill IFE this well, not withstanding any losses to k formation, I „ _ I „ i I, • Mi 81At1�►f::Q. Section 1 -- Objectives / Benchmarks / Goals Goal / Objective Achieve Health, Safety and Environmental Goals Benchmark No Accidents, No harm to people, No damage to environment __ Performance Da e s away from work, medical treatments, fluids dischar e, s 'lls Y Y 9 pi Goal / Objective No NPT on well Benchmark No NPT due to mud properties out of specification Performance Daily review of mud properties with mud engineer pfd project Measure engineer Goal / Objective Minimal losses to formation Benchmark Control and /or minimize seepage losses in underpressured n,'$, , Performance Verify losses per hole section on well with OneTr=_ax Measure Goal / Objective No NPT on well Benchmark No hole cleaning issues upon following the program ar Iqr rig site mud engineers recommendations. Performance Monitor NPT on daily Marathon reports Measure IIiII I I I I I I ii K !i Section 2 — Well Design �I Paxton 3 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 101' 9.625" 12.25 l ii 2500 1444 GEL SPUD 8.8 — 9.4 $19,849 5 P. 4.5" 8.5" ? ;` 7314 4075 FLOPRO 8.9 — 9.5 $156,425 8 Liner 3% KCL Brine 8.6 $15,273 3 gv Comp Dos d oes include e ngineering charges ,, k i 1 ■ a 1 w • • FORMATION TOPS ESTIMATED PORE PRESSURES VI I H p 9,;ri,INJP lullII d, - "pl1 s.ui " " {i w w r r" - I� i�'�P �"x". 4 i - 1 �" , -- V Il, llly iui . Jlllil'VUj �, Illtll 101 fk j il, III _ - 7V� Ij 1tlV f llll a Iti — .'�6o I �,;�4 o ��u," u 'uuR�� ' � u„Wa M1.s'1u 1III IVV ' -.-- � � v —x, �.., [V i , , - I7 rf ,, 0 „ _- 1 1 " ISM ;:." v;4'i , ° 1 - 50 - 1 -gig,.. 0 i.' 1 �1.- _ I , _ - iY�h1 RII VIII I � I II '11 V0 i: O ' l II I i 1V, N�i IPIIII III 1. 111111 ltl of I � ii�iWV:�- = - - � � �� tl. f' � ° . .�� V �l I vI u��1vl ll'��m a�� 14�i l Beluga45 1782' 7.7 -8. Beluga 70 2489' 7.7 - 8.9 Tyonek T1 Coal 3471' 7.7 - 8.9 Tyonek T1 Coal A - TD 3843' 7.7 — 9.2 Section 2 —Weil Design and Target I _ nd Mud Ta et Goals lab 1 ' 11 1 'I EMS Mud Cuttings 1 1 Performance 12.25" OH 8.5" OH II Section Benchmark Section o Benc c Se Section Length 2500 4814 Cuttings Discharges ** 364 341 Mud * ** Discharges 2187 1314 11 M Id * 11 � 1 I Il 1 Cuttings 2551 1655 Discharges EMS Mud Cuttings and Mud Target Goals bbislft - Performance 12.25" OH 8.5" OH Benchmark Section Section Section Length 2500 4814 Cuttings Discharges 0.146 0,071 11111 = Mud Discharges 0.87 0.273 I 3 III Mud + 1 i Cuttings 11~02 0,3 .11 �1 g Discharges 11�� C" ** Gauge hole cutt 11 11 L 1 1 1 1 11 * ** 11 1 1 111 Includes mud on cuttings 1 9 __::::::::::::::,:!:1:::,,,,:::,,,,:: • • r r Section 3 — Challenges/ Potential Problems Discussion / Recommendations COMMUNICATION — The Field Mud Engineer will communicate daily with the, Irk, Town Prb'ject Engineer. The Project Engineer will then communicate daily with the rig IrilUng Engineer Communications should be about, but not limited to, fluid properties, hole di ficulties, changes to to the mud program, and proposals to use products not included in th program WHOLE MUD LOSSES TO THE FORMATION — Refer to loss circultation formulas for maintaining proper bridging material concentration in the mud system while dnlling,,,the production interval. FLUID LOSS CONTROL — In the production interval the API fluid will be maintained in the 5 7 cc's at all times. In addition to sufficient fluid loss agent additions, this may require' adequate dilution of the mud system in order to keep reactive drill solids to a minimum LSRV — When drilling with a FloPro fluid, the low shear rate rheology should-_ be maintained around 30 — 40,000 cps. In addition to adequate additions of FloVis Plus, thiswill also require keeping reactive drill solids to a minimum in order to reduce or eliminate false and unwanted high LSRV. DRILL SOLIDS — MBT — The MBT should be kept at less than 5 ppb in the production interval through aggressive use of solids equipment and dilution as needed. MIXING CONDITIONS — Whenever possible all treatments to the mud system should, Abe mace as pre -mix additions. Polymers and KCI should first be mixed in fresh water in tha0order and then blended into the active system over one or two circulations as needed. __ CORROSION — Conqor 404 additions should be made daily when drilling with Flopro -fluid in to maintain Conqor 4 4 concentration order a s Co 0 0 c ce tion of +/- 2000 PPM. a q II CORROSION - Sodium Meta Bisulfate additions should be made daily as needed with_ =any fluid in the hole. Maintain a DO reading of less than 3 ppm MYACIDE 25G ADDITIONS — Myacide 25G additions should be made daily,,wh'en drilling in the' production interval, in the range of 5 gallons per day. WEIGHTING UP — All increases in mud weight should be accomplished with barite additions. In the production interval. KCL CONCENTRATION — 3% KCL will be used both in the FloPro dnllingalpids and in the completion brine formula. Previous wells and fluid testing have shown this "t b more then sufficient for clay inhibition vs. old 6% KCL formulation. ..„ • MI S{fVAG w Section 3 -- Challenges/ Potential Problems Hole Cleaning Recommendations ❑ Low -shear rate viscosity "LSRV" values (6 and 3 rpm) has a greater impact on hole cleanin Y " m ( p) g p g than field point, in addition r � rit s suspension under dynamic as well to providing barite su d am a s tatic Y p p g p Y s conditions. Optimize rheology to increase hole cleaning efficiency of fluid (Adiustmentpofi 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 annule g cuttings load. Use the PWD data (if available) to determine when it is necessary t -stop drilling - and circulate the hole. ❑ Keep cuttings concentration less than 5% (by volume) in order to minimize driliiri problems ❑ Sweep Recommendations: ❑ Don't recommend the use of sweeps unless hole conditions dictate the necessity. ❑ Hi- Vis sweeps are recommended to use if needed. The volume should be enough to cover at least 200 -300 annular volume of the open hole. The recommended rheology of the sWeep would have the Yield Point in the 35 -40 range and the 6 RPM readings in the 15- 20':range. ❑ Weighted sweeps are another option, but Hi -Vis sweeps are preferred. ❑ The need to pump LCM sweeps will be dictated by hole conditions. Bit/BHA Balling Recommendations, ❑ The reactive clay formations can absorb high volumes of water and can be e�t ' ll i"emel Stick and IIII 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 anh4M# below 5 %. ❑ Short trips should be made as necessary to minimize buildup of cuttings in areas_ of,hci washout. ❑ During trips, the BHA can accumulate cuttings that will potentially ball it. Rectrrfinend cireulatt'Opti for a short period to circulate up any formation that may have adhered to the BHA or bit durirt :1 the trip. '11.11i . . wwh S{wwrl�wC Section 4— Lessons Learned & Offset Mud Data µ Offset well #1: Susan Dionne 3 Depth of Mud Wt. ' TVD Description of Information concerning the Event or Problem b Event/ (ppg) (Feet) Event / Problem Problem 1875 9.1 Tn. for motor 3100 9.3 Build new mud 4190 9.55 Drillin. ahead with lots of cla 4756 9.5 Yi1Ijj Hit brid.e. Dum. and dilute mud to reduce solids 5245 9.8 3434' !AYAlIj . Hit brid.es, raised mud wt to 9.8, run 7" casin. A Offset well #2: Paxton 1� Depth of Mud Wt. TVD Description of Information concerning the Event or Problem Event/ (ppg) (Feet) Event / r r Problem Problem 561 8.8 561 Stuck pipe Loose boulder stuck pipe at 200'. 3117 9.2 2100 Tight hole Tight hole on wiper trip @2673' 6116 9.7 3405 Tight Hole Pump out of hole from 4590 -4179 s fix! i i u # a Jfr r. 5 II s • • INIi SW \\ Section 5 — Surface Interval (0' — 2500') Depth Interval 2500' MD (1444' TVD) (12.25" OH, 9 5/8" 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 '� I — ai I TM L IIV Vow �� M I� !;Vlry I � I VI 15:11r; �V, ui iql r Ii II r �' F� ill Po lih 1,11111 l�lii�lJu III t _ H II�111,. +I i q x- - � a- � � Nm1 q f ry pi "I I�mi ` - - r ",y' 'W h 7 ul � ' dl IgqII 01 l °,044' I u V H i HI I i � INi I II .. �- r i - "V ry� i� N 9 and �ry lulm idl lio i uu l �- - ll �h l i "` 1 I� ii Ir Ilm uujluVlil9�h'I�V� q . '-:^; -. NII'lIV. ,."u.:` 2500 8.8 — 9 . 4 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 +1- 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 become a problem. ➢ Condition mud prior to cementing casing to reduce yield point and gel strengths. r • M� SWAG, ( P s. i * � k y a- °. • Hyd raulics /Hole Cleaning g ' �I V rtuall H cutti dr aulics Graphs The following graphs look at Engs at 2500' casing shoe an moving cut concentration (MCC) in the annulus the CD + while drilling the section. r r VH SNAPSHOT KYI99S2009 M-I LLG MD: T500 ft OPerdor: Marathon il, * * Bit Size: 12.25 in W Location. Kenai Peninwia a lup '� Poll VIRTUAL NYDRAULIC 1 2V1472009 Country: Aleska DeppW Geometry Angle Density Va Hole Clean P ure Distribution �la,v (ft) ND /ND Csg ODIID (� (l bl g al ) (R/min) Index (%) lni OM 0 45 90 92 96 t o n 10.4 0 za wu 1,c 6 F P Bit =17 ress Mn =as Ds =79.2 t, Muir L 2a 00 �� j - i� 7 , , ur , , zaa �ior� 1s 625 - It � . 11 �x oa __. I m Water- B a = sno Mad Weight 9.4 Ib /g - _ Test Temp 1 °F 1 +_ -_. Flow Rate System Data 00 g /m in ...�r . 1200 Pene[2[lon Rate 150 it/h1 ^, • noo • - _... - _ Rotary S p e ed 100 rpm Weight on 36' 15 10001b inns _ __ _ I-- Bit Nozzles 1.5 In' 8 I lsoa -- a ._.. - ._. Pressure Losses . : ' " Modified Power Law 1 D SMng 890 ps 800 -- . __. MWD dII r 350 p 450 ps Moto zaaa Bit s 191 Ps � &t On /Ott 100 Pa ' 2200 Annulus 93 p } ... _ -_ Surface Equip 61 ps a U-Tube Effect 20 P6 I' t Total System 2105 Ps 2aoo 1 _,. ESD ECD Cut I 1444 12250 -_ Cog Shoe 9.50 9.62 9.89 ; ID 0 - TD 9.51 10.08 10.34 .....55... ESD 1 IL A � ^� veoo.ogmoa •••••••— ECD 2800 — n,r,,a� �� ® a� �ewe�w�t ,I�I I I ip _ - ;III 1i 3- 7a.d iI11i s I I r+{ Il " A�I l� �t T d�g�y �w � 1 u4 Ii� a k'r d /&I a, { p l'a li q 40 r rid i - _ d4, 1 t r" 'fi F c. ".' .`v • • a l " n �� W.,-. /� /� us,,ae Fret S ' - � _ 4f: Ir f�, ' � � � , IW�ar�� uq`71�Pf r 7 t r _ VH HOLE CLEANING "'Iil14iII "ryx ' 1^#7 SAL ®199SZWf,.Ml LL C. MD 25W ft Opeator Mmatho° =a! ®� TVD 1444 R wen Name: Parton J VIRTUAL HYDRA YRDH Bit t e : 1215 L ° °�' ° ^ °a. Pam" a °. a Date: 7717411W8 Country Alas k�, Hole Cle aning Mara Pa xton 3 1 v ROP 25 ft/hr 1 ... 1 — R OP 5 ft/hr — ROP75ff/hr 1 . HOP 100 ft/hr Poor Ho e ing — ROP125 1 0 75 L-= R OP 150 fUhr X is � -- Fair Ho le C leaning 050 __ 01 v p .,.,�� Good Hole Cl 0 _. nJdHmg 0 400 500 600 700 800 Flow Ve Goo Rate (ga oleClean t s ss f I 11 1 - w L 1 I 1 I tl ,W 4V t �M I w0 'fr _e • • 111 ti SWAG • Section 5 - Production Interval (2500 7314') Depth Interval 7314' MD (4075' TVD) (8.5" OH, 4.5" Casing) Drilling Fluid System FLOPRO with 3% KCL 711111: Flo -Vis / PolyPac UL / KCI / SafeCarb F & M / Asphasol Supreme / Key Products LoTorq / Caustic Soda / Conqor 404 / Sodium Meta Bisulfate I Klagard Solids Control Mongoose shakers, desilter, centrifuge ". ". Potential Problems Hole Cleaning, Hole Stability, Seepage losses INTERVAL MUD PROPERTIES '�V V {Y d � u d r^ � rl h 4V {th t}h "') (dar i t 7314 9 -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 and 2 ppb G Seal. ➢ Periodic additions of LoTorq will be needed to maintain 3% minimal concentration. ➢ Condition mud prior to running 4 -1/2" casing. • • Mt SWAG° . Hydraulics / Hole Cleaning° Virtual Hydraulics Graphs The following graphs look at the ECD + cuttings at 7314' and moving cuttings concentration (MCC) in the annulus while drilling the section. 4 VH SNAPSHOT t Mi EW C C) ©1995 -2009 M -I LLC. MD: 7314 ft Operator: Marathon _ TVD: 4075 ft Well Name: Paxton 3 VIRTUAL HYDRAULICS* SnapShot Bit Size: 65 ` °�' ° ^° P ° ^'na Date: 12/101 27 0 Country: Alaska 1 Depth GeomeW Angle Den Va Hole Clean Pressu Distri (B) ND/ND Csg OD /I D (•) (lb/gal) (fUmin) Index ( ° /, ) _ (A) (in) 0 45 90 9 6 1 04 11 2 120 0 300 600 5 60 S F P Blt = 28.7 Ann = 30.5 DS = 40.8 III inn 1 500 1000 1500 i __1 _ 1 i ) bh p, i Drillin Fluid ! g 2000 T I _ FLOPRO NT ' - -- ) Mud Wa1gM 9.5 Ib /gal ` 2500 2500 , _ 10750 {.._ ... - Test Temp 120 ° F :447 9.900 -- 3000 System Data ' Flow Rata 450 gallmin 3500 • _ _ ._.... Penetration Rate 80 R/hr ;� l -- Rotary Speed 100 rpm " F Weight on Bit 10 1000 Ibf 4000 F . _.. Bit Nozzles 13-13-13-13-13 13- 0 -0 -0 -0 " 4509 j I - - - — - - - -- -- - Pressure Losses j Modified Power Law 5000 , ` Drill Stdng 420 psi 5500 / -._ - .. __. MWD 350 ps v '. Motor 250 ps E Bit 296 ps 6000 t . Bit On /Off 100 ps , i - ` r ` -- - _ _ _._.. Annulus 314 ps Surface Equip 23 ps 6500 • . U-Tube Effect 22 Ps Total System 1776 ps 7000 • ( : - — ESD ECD +Cut t -, . 6500 t - -- -,- Csg Shoe 9.62 10.77 10.89 7500 4 75 — I = _ ( TD 9.63 11.11 11.22 — ESD ._ J - . a ECD 6000 e T Y 0 .. Bed Vol% M rw V...... w...anae i s 1 . 4 1 s . _ . - • • Ma �iWAC V H HOLE CLEANING IV!. W4 CQ 019 20 09MIu� �c Mo : 7a14 a op 1 ee Mamtnoo TV D: 4075 R Well Nam Patt 3 VIRTUAL HYD RAULICS* VRD B9S,ae es `D °_ Date 12I1 9 Co a s a Hole C �,` 1 00 Marathon Paxton 3 . ROP 1204/hr � : ROP 16 ftih Poor Hole Clea C leaning 0.7 x m v Pai Ho le ning m c @ 0 50 a m p "G�- 4ia,1Cleaning 0 25 Very Good Hole Clea - - 200 300 400 500 600 Flow Rate (gal /min) I u r . 0'p T :II, I m I M Sb i LLT X N °Y— a • • d fd M�SWAG• �-�_ :17''A'''''''''''''''I'l'L'---,W:-:'I'"-zi:--Ts':''°H':"'+-=il17: Section 6- Solids Control Equipment +` a`` Solids Removal Equipment Recommendations: The recommended SRE for this well are: Mongoose Shakers and Swaco Centrifuge. Recommended shaker screens sizes are as follows: Interval Recommended Screen Sizes Recommended Screen Sizes (Shaker 1) (Shaker 2) 0 — 2500' (Surface) 165 — 200 mesh 165 — 200 mesh 2500 — 7314' (Production) 200 — 230 mesh 200 — 230 mesh Completion 230 — 275 mesh 230 — 275 mesh Section 7- Summary of Cost and Product Usage 12.25 in Hole Sections (2500 ft.) Product Unit Size Units Required Cost I Product M - Gel 50 # Sx. 582 $6,879 Caustic Soda 50 # Sx. 26 $1,093 Gelex 2# Sx. 32 $620 Polypac Supreme 50# Sx 26 $4,053 Sodium Bicarb 50# Sx 26 $541 CF Desco 25# Sx. 26 $1,213 Soda Ash 50# Sx 18 $450 Total Estimated Product Cost $14,849 8.5 in Hole Section (2500 ft. - 7314 ft.) Product Unit Size ; Units Required Cost / Product M -I WATE 50 # Sx. 272 $2,866 Asphasol Supreme 50 # Sx. 72 $6,122 SafeCarb 50 # Sx. 725 $19,201 IR Soda Ash 50 # Sx. 9 $225 Caustic 50 # Sx. 18 $766 PolyPac UL 50 # Sx. 72 $11,354 FloVis 50 # Sx. 145 $29,976 Sodium Metabisulfite 50 # Sx. 36 $3,249 Myacide 5 gal 20 $3,003 _ Defoam X 5 gal 20 $2,692 Conqor 404 55 gal 4 $5,603 KiaGard 55 gal 16 $10,995 LoTorq 55 gal 42 $34,805 a 1 KCL 50# Sx. 399 $17,379 Bicarb 50# Sx. 9 $189 Total Estimated Product Cost $148,425 6 • • fllfi BWAc Section 8 -r. Summary of Product Cost and Engineering for PI O, P50, P90 Estimated Drilling Fluid Related Costs Engineering Depth Interval Costs Interval Cumulative (ft) Product Costs ($) Days Cost Cost ($) ($) ($) Surface $14,849 $5,000 5 $19,849 '$19;849 Production $148,425 $8,000 8 $156,425 ,,, =$176,274 Completion $12,273 $3,000 3 $15,273 - $191,547 - P10 P50 ,`' P90 -- _- Total Estimated Product and Engineering Cost $136,819 16 $191,547 ' $268465 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 pfy - I� II �ili� i ii ii I 1 i i I - • • Nib SWAG Appendix 1 — Lost Circulation Recommendations Lost Circulation / Seepage Action plan: ❑ Have sufficient sized LCM on rig to begin interval. ❑ Recommend hourly addition of LCM to keep a concentration in the system at all times ^The addition of Calcium Carbonate (M, C), MIX II (cellulosic fiber), G -Seal (graphite) and Diamond Seal (coarseground 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 cover 113 the expected pore throat size and a D90 of cover the pore throat size. The D90 material should_ up '60% of the total LCM ppb pumped. ❑ Coordinate size and amount of LCM sweeps with MWD personnel on rig. ❑ 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 preS §tires to formation. I I l ,;III I I I ii I i 1 i4 1 1 1 1 - i I I • Appendix 1 -- Lost Circulation Recommendations The following proactive lost circulation decision tree can be modified to include any contingencies that Marathon requires. The flowchart allows for planning of lost circulation mater l" +'needs. - aiiiialit' I Losing fluid while drilling Measure rate of loss 1 1 . IV Seepage losses Partial losses Severe losses - 20 bbllhr . 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 1 1 Spot 45 ppb pill *: Spot 80 ppb pill: Contact Drilling / G -SEAL Plus 10 ppb _ No success . M G -SEAL 15 ppb — No success [ Asset Engineer M -I -X II M 15 ppb _ - - II C 20 ppb for approval SAFE CARE 40 10 ppb M -I SEAL M 10 ppb SAFECARB 250 15 ppb NUTPLUG F 5 ppb NUTPLUG F 10 ppb Magma Fiber 5 ppb Magma Fiber 10 ppb "0' I, Spot 100 ppb pill Pump ant BHA Ciri sub reuuired are sub required G -SEAL 15 ppb M -I -X II C 20 ppb SAFECARB 40 20 ppb I1 ' SAFECARB 250 25 ppb NUTPLUG F 10 ppb Magma Fiber 10 ppb illIll. I d _ 1I'I Squeeze high- fluid -loss pill*: FORM -A- SQUEEZE 80 ppb (2sx/bbl) in water Weighted up to desired density I' No success = i i The .f article size o these products ducts is smaller than Nut Plu g M P Spot ht P plug: Gunk Squeeze or FORM -A -SET AK • Mil EWA I CM Restrictions Losing fluid while drilling Measure rate of loss l Seepage losses Partial losses Severe tosses 5 - 20 bblihr 20 -60 bbl/hr 60 w.: 200 bblihr 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 1 Spot 50 ppb pill*: N° Spot 80 ppb ill C Drilling P PP P P PP P g / Asset success are gab required Engineer for approval SAFECARB 40 20 ppb No SAFECARB 250 10 ppb success —÷ SAFECARB 40 10 ppb SAFECARB 500 15 ppb SAFECARB 250 15 ppb „, Magma Fiber Reg 5 ppb SAFECARB 500 30 ppb SAFECARB 1000 15 ppb Spot 80 ppb pill Pump don BHA N Magma Fiber Reg 10 ppb are sub required 1 G -SEAL 15 ppb No success M -I -X II C 20 ppb No success M -I SEAL M 10 ppb +. SAFECARB 250 15 ppb NUTPLUG F 10 ppb Contact Drilling / Asset Magma Fiber Reg 10 ppb Engineer for auuroval i Spot 80 pill II S l lI ' ll ' I P ppb � �� I " �'�� Cite OW ti*Ohid Squeeze high- fluid -loss pill: G -SEAL 15 ppb No success FORM-A-SQUEEZE M -I -X II C 20 ppb Q M - SEAL M 10 ppb 80 ppb (2 sx/bbls) in water SAFECARB 250 15 ppb Weighted up to NUTPLUG F 10 ppb desired density Magma Fiber Reg 10 ppb paw thra 'gam 1 No success - * The particle size is smaller than Nut Plug Medium Spot plug: Gunk Squeeze or FORM -A -SET AK MEM • • Mi SWAG Appendix 2 -- Minimum Time to Circulate Prior To POOH This model simply predicts the minimum flow rate required for adequate cuttings transport: No -- predictions are available for the rate at which cuttings are removed. Because the cuttings move more slowly than the circulating mud, it is essential that sufficient bottoms -up are , circulated prior to tripping. A SINGLE BOTTOMS -UP IS NEVER ENOUGH! The minimum on bottom circulation time prior to tripping will be influenced by hole size, - inclinetion and flow history (i.e. mud properties and flow rate). These factors will affect =the height of''apy residual cuttings beds. Recent work by Exxon has indicated that the volume of cuttingOeft behind during normal drilling operations can be considerable. They recommend selection of bits /BHAs =with large bypass areas to facilitate tripping out of the hole. Before tripping, monitor the shakers to ensure the cuttings return rate is reduced to an acceptable background level. The figures in the table below are guidelines based on sirnhle slip velocity considerations and field experience: WELL INCLINATION SECTION LENGTH FACTOR RANGE 17 -1/2 inch HOLE 12 -1/4 inch HOLE 8 -1/2 inch HOLE 0° - 10° 1.5 1.3 1.3 10 - 30 1.7 1.4 1.4 30 - 60 2.5 1.8 � 60 + 3.0 2.0 1 WI' Procedure 1. Effective length = Section length x section length factor. 2. Circulation time = Effective Length x B/U Measured depth at Bit „ II Example in n lI f v' d h angle,. Since n of a o the section back to surface will be deviated at the same IIIIIIII VIII the , ova II minimom ll'I ra circulation time prior to tripping should be apportioned in direct relation to the relative lengths ofysection at each angle. uI VIII IIII II I I - i - • • Mi SWACQ. Appendix 3 HSE Issues Safety Recommendations for Mud System • 1. The rig crew should be briefed on the makeup of the drilling fluid and its cost. Safety and care should be used when drilling with any drilling fluid. An M -I Engineer will brief rig crews about drilling fluid and basic safety procedures. 2. MINIMIZE contact with the drilling fluid; although it's non - toxic, it can irritate skin 3. Wear personal protective equipment when you must work with the mud. Proper equipment • includes: a. Safety glasses or goggles b. Hard hat c. Steel toed boots or shoes (recommend rubber for shaker and drill -crew) d. Protective clothing (disposable suits or slicker suits) e. Barrier cream f. Rubber gloves . I safety rules. II II " Note: As always, follow the rig and operators sa et u 0 Y g Y I l I 4. If you get mud on your skin, wash it off as soon as possible. Do not allow mud to stay in contact with your skin for longer than 30 -40 minutes. Do not wash with rig soap! Use GOJO mechanics_ degreaser or other similar type product. - 5. If clothing becomes saturated with drilling fluid, then change your clothes. Do not continue to work in clothes saturated with mud. 6. Designate one rig washing machine for muddy clothes. Do not wash other clothes in this machine. 7. Protective Equipment that has worked well on other jobs: II II IIII IIII 1 I I IIII II I I I II IIII 1 a. Disposable suites: TYVEK BRAND 1 11141111 1 I I 1 Iii II b. Rubber boots: GOODALL BRAND POLY GRIP BOOTS MODEL #A1541 MODEL 252 LITE OVERALL, MOD #C 2- r pants: GOODALL ARMOR c. Cov II e a p d. Coverall Jacket: GOODALL ARMOR LITE JACKET, MODEL #C2520 8. Common sense when working with drilling fluid will prevent any safety -problems If you get drilling fluid on you, wash it off. If you have to work with or around the ',, mud-, wear - your protective equipment. Watch your step and clean up any spills. ?;' - 1 1 I, 11 I 1 I 1 1 II I I I II I In 1 II • • lVHI - Appendix 4 -- Recommended Drilling Practices A. Operational Procedures: 1. Stage into open hole several increments breaking circulation each time and circulating 'for a period of time to get the fluid moving. 2. Idle pumps when beginning circulation to minimize surge pressures 3. Work pipe and rotate while circulating to help break up gel strengths Deviated holes will have a tendency to aggravate barite sag problems. These typ sections may, require higher yield points or low shear rate viscosities than the above recommended ranges, to compensate for this tendency. - I i 0..0011101:101101:1 0 000 - - • • TRANSMITTAL LETTER CHECKLIST WELL NAME ea V w - 4 3 PTD# 2 0 1 160 /Development Service Exploratory Stratigraphic Test Non - Conventional Well FIELD: POOL: Circle Appropriate Letter / Paragraphs to be Included in Transmittal Letter CHECK ADD -ONS WHAT (OPTIONS) TEXT FOR APPROVAL LETTER APPLIES MULTI LATERAL The permit is for a new wellbore segment of existing well (If last two digits in Permit No. , API No. 50- - - API number are between 60 -69) Production should continue to be reported as a function of the original API number stated above. PILOT HOLE In accordance with 20 AAC 25.005(0, all records, data and logs acquired for the pilot hole must be clearly differentiated in both well name ( PH) and API number (50- - - ) from records, data and logs acquired for well SPACING The permit is approved subject to full compliance with 20 AAC EXCEPTION 25.055. Approval to perforate and produce / inject is contingent upon issuance of a conservation order approving a spacing exception. assumes the liability of any protest to the spacing exception that may occur. DRY DITCH All dry ditch sample sets submitted to the Commission must be in SAMPLE no greater than 30' sample intervals from below the permafrost or from where samples are first caught and 10' sample intervals through target zones. Non - Conventional Please note the following special condition of this permit: Well production or production testing of coal bed methane is not allowed for (name of well) until after (Company Name) has designed and implemented a water well testing program to provide baseline data on water quality and quantity. (Company Name) must contact the Commission to obtain advance approval of such water well testing program. Rev: 1/11/2008 . _ WELL PERMIT CHECKLIST Field & Pool NINILCHIK. SD TYONEK UNDEF GAS - 562560 Well Name: NINILCHIK UNIT 3 Program DEV Well bore seg E PTD#: 2091680 Company MARATHON OIL CQ_____ Initial Class/Type DEV / PEND GeoArea 82.0_ Unit 51432 On/Off Shore On Annular Disposal E Administration 1 _Permitfee_attached NA 2 _Lease number appropriate Yes 3 _Unique well name and number Yes 4 Well Jocated 10 a defined_ pool Yes Beluga / Tyonak 5 Well Jocated proper distance from drilling unit boundary Yes 6 Well _located proper distance from other wells No 7 _Sufficient acreage available in drilling unit Yes 8 if_deviated, is welibore plat included Yes 9 Operator onlyeffected party Yes 10 Operator has appropriate bond in_force Yes Blanket_B_onci # 5194234, 11 _Perm1t_can be issueci without conservation Order No Spacing Exception required; C0626 issued. Appr Date 12 _PermIt_can be issued without administrativ_e approval Yes ACS 12/24/2009 13 Can permit be approved before 15-day_wait Yes ilk 14 _Well Jocated within area and strata authorized_by injection _Order # (put 10# in_comments).(For NA 15 All wells _within 1/4 mile area 05 review identified_ (For service well only) NA 16 Pre-producedinjector _ duration of pre-production less_than 3 months (For_ service well_only)_ NA 17 _N_onconven._gas conforms to AS31.,0_5„030(j,1_,A),(1.2A-D) NA 18 Conductor string provided Yes 20" driven to _98. Engineering 19 _Surface casing protects all known USOV_Vs Yes 20 _CMT_votadequate to_clrcu_late_ on _concluctor_8_ surf _csci Yes Adequate excess. 21 _CMT_vol_adequate to_tie-in long _string to surf csg NA Liner in surface casing, 22 _CMT_will coyer all known productive horizons Yes 23 Casing designs_ adequate for 0, T. _B.& permafrost Yes Adequate_ eatety_fectort 24 Adequate tankage or_reserve pit Yes Glacier Rig_ 1. 25 if_a_re-clrill, has a _1 Q-403 for_aben_donment been approved NA New well. 26 Adequate wellbore separation_pro_posed No Spacing exception approved. 27 ifcilverter required, _does_itmeet regulations Yes Appr Date 28 _Drilling_ fluidprogram_sohematio & equip_list_adequate Yes Max,MW,9,5_ppg. WGA 12/31/2009 29 _BOPEs,_do they meet regulation Yes 5M psi rated. 30 _BOPE _press rating_appropriate;_ test to_(put prig in comments) Yes MASP 1208 psi;_test to2000 psi. 41111- - 31 _Choke_manifold_complies w/AP1 RP-53 (May 84) Yes 5M pal rated. 32 _Work will occurwithout operatidn_shutdown Yes 33 Js presence of 1712S_ gas probable No 34 _Mechanical condition Of wells within A013 verified_ (For _service well only) NA Development well. 35 _Pormit_cen he issued w/o hydrogen sulfide measures Yes Geology 36 _Data _presente_d on potential overpressure zones NA Appr Date 37 .Seismic analysis of shallow gas zones NA ACS 12/24/2009 38 _Seabed PQriglitiQn_SW_VeY_ (if 9ff NA 39 _Contact name/p_hone_for,weekly_ progress reports lexploratory only] NA Geologic Engineering flir Pub t Dae: Date Date Commissioner: Commissioner: db. il I' , A..- 'WAIF /a? ,• -- Well History File APPENDIX Information of detailed nature that is not particularly germane to the Well Permitting Process but is part of the history the. 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 inforulation. MARATHON Marathon Alaska Production, LLC PAXTON 3 S13-T1N-R14W S.M. MARCH 1, 2010—MARCH 18, 2010 I .. t. ■ '4 1 • + +, �1 t ia( ��12,,J� _° "' . I«ne ' +�54!;�ss• -r tom_ I,14r k ram -117031111 off _ 111111111k Z Ralph Winkelman: Senior Logging Geologist John Lundy: Senior Logging Geologist \u) 4 0-0 C:ANIRIG C "'/ Marathon Alaska Production LLC PAXTON 3 TABLE OF CONTENTS 1 MUDLOGGING EQUIPMENT AND CREW 2 1.1. EQUIPMENT SUMMARY 2 1.2. PERSONNEL SUMMARY 3 2. GENERAL WELL DETAILS 4 2.1. OBJECTIVES 4 2.2. WELL RESUME 4 2.3. HOLE DATA 4 3. GEOLOGICAL DATA 5 3.1. LITHOLOGY REVIEW 5 3.2. SAMPLING PROGRAM AND DISTRIBUTION 13 4. DRILLING DATA 14 4.1. DAILYACTIVITYSUMMARY 14 4.2. SURVEY RECORD 18 4.3. BIT RECORD 24 4.4. DRILLING PROGRESS CHART 25 5. DAILY REPORTS 26 Enclosures: 2"/100' Formation Log (MD and TVD) 2"/100' Drilling Dynamics (MD and TVD) Final Data CD 1 CANRIG Mk) Marathon Alaska Production LLC PAXTON 3 1 MUDLOGGING EQUIPMENT AND CREW 1.1. EQUIPMENT SUMMARY Parameter Equipment Type And Position Total Comments Downtime Low gas readings are a persistent concern due to the immediate pre-shearing of return mud,that falls 14" Standard Air Drive Trap Mounted In straight down through the line air p gap as it exits the flow line Ditch Gas Possum Belly; FID Total Hydrocarbon 0 and impacts the fluid of a Analyzer And Chromatograph tiny possum belly in a wide splash,before reaching the gas trap. THA failed,1 hour down time during trip to replace THA and calibrate. 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 2 CANRIG M '"°°"°' Marathon Alaska Production LLC PAXTON 3 1.2. PERSONNEL SUMMARY Unit Number: ML006 PAXTON 3 Years Days Sample Catchers/ Days Days Mudloggers Experience at Trainees at Technician at well well well Ralph Winkelman 19 Zach Mester 10 Howard Lamp 2 John Lundy 18 Shaun Terhune 11 3 CANRIG M Marathon Alaska Production LLC PAXTON 3 2. GENERAL WELL DETAILS 2.1. OBJECTIVES The objective of PAXTON 3 is to successfully drill and log an extended reach, multi zone directional hole. Completion will be done without rig. 2.2. WELL RESUME Operator: MARATHON OIL COMPANY Well Name: Paxton#3 Field: Ninilchik Unit County: Kenai Peninsula Borough State: Alaska Company Representatives: Rowland Lawson John Nicholson Grant Pribilski Location: 713' FNL, 2929' FEL Sec 13, T71 S, R14W, SM Classification: Development API#: 50-133-20588-0000 Permit#: 209168 Activity Code: (WBS#s) DD.09.21293.CAP.DRL Rig Name/Type: Glacier#1 /Land/Double Elevation: Ground, RKB 150'MSL; 171' RKB Primary Targets:/Target Depths: Beluga B1 &B2 4137' and 5361' respectively Primary Targets:/Target Depths Tyonek T1 coal 6571' Spud Date: March 1, 2010 Total Depth 7414' Total Depth Formation: Tyonek Total Depth Date: 3/18/2010 MWD Company:/Tools Run: Baker Hughes Inteq / Directional MWD Directional Drilling: Baker Hughes Inteq Drilling Fluids Company: M-I SWACO Logging Companies: NONE 2.3. HOLE DATA PAXTON 3 Hole Maximum Depth T.D. Mud Deviation Shoe Depth F.I.T._ g Casing Section MD SSTVD Formation Weight ( inc) MD SSTVD EMW 12.1/4" 2537' 1272.08' Beluga 9.4 81.92 9 5/8" 2520' 1269.59 15.2 8 1/2" 7414' 4008.81' Tyonek 9.4 35.70 41/2 7414' 4008.81' N/A 4 CANRIG M Marathon Alaska Production LLC PAXTON 3 3. GEOLOGICAL DATA 3.1. LITHOLOGY REVIEW Tuffaceous Claystone/Tuffaceous Siltstone(2560' -2680')= light gray to medium light gray with light brownish gray secondary hues; very soft; moderate to very sticky; shapeless, globular cuttings; silty to clayey texture; dull to slightly greasy luster; moderate to very soluble; expansive when hydrated; poor cohesiveness;fair to good adhesiveness; non calcareous; trace to common dark brown to black carbonaceous material present as very thin beds or as loose fragments. Sand/Sandstone(2620' -2740')= medium to medium light gray overall with strong salt and pepper appearance, individual grains dominantly clear to translucent quartz and volcanic glass, medium to dark gray to black lithics,trace light green to greenish gray, white and yellowish brown; very fine upper to coarse upper, dominantly fine upper to medium lower; angular to subangular; poor to fair sorting; dominantly disaggregated with scattered sandstone fragments of the above described individual grains; hard;well consolidated; very calcareous cement; trace to abundant dark brown to black carbonaceous material/coal. Tuffaceous Claystone/Tuffaceous Siltstone(2720' -2800')= medium to medium-light gray with light brown to light brownish gray secondary hues; very soft to moderately firm; shapeless, globular to slightly tabular cuttings; silty to clayey texture; dull to slightly greasy luster; moderate to very soluble; hydrophilic; moderately expansive; poor to fair cohesiveness;fair to good adhesiveness; trace dark brown to black micro-thin carbonaceous laminations and inclusions in firmer fragments; non calcareous Sand/Sandstone(2800' -2960')= medium gray with a slight brownish secondary hue; soft to disaggregated; sample collected as loose sand; friable; moderately well sorted; coarse lower to medium upper and fine upper grain;trace coarse upper size angular pebble fragments; individual grains are primarily dark to medium gray lithic sand with 40 to 50%translucent white to clear quartz/volcanics; trace to common dark gray to black mafic mineral/volcanics; no apparent cement overgrowth on individual grains; primarily grain supported with occasional moderately indurated fragments with clay/ash matrix support; interbedded with and grading to associated tuffaceous siltstone/claystone and occasional thin coals;trace to common brownish gray to black carbonaceous shale and silty lignite; overall moderately calcareous; may be due to safe-carb mud additive(CaCO3); no oil indicators. Tuffaceous Claystone/Siltstone(2900' -3000')= light to medium gray; occasionally medium brownish gray; clean clayey to silty and slightly sandy texture; irregular to slightly tabular cuttings habit; moderately adhesive/cohesive; hydrophilic in part; easily lost in sample preparation;thinly bedded/interbedded with and grading to associated sandstone; occasional thin coals and carbonaceous shale inter-beds; slightly calcareous; no oil indicators. Tuffaceous Claystone/Siltstone(3000' -3100')= light to medium gray; occasionally medium brownish gray; clean clayey to silty and slightly sandy texture; irregular to slightly tabular cuttings habit; trace micro- thin carbonaceous lamina; moderately adhesive/cohesive; hydrophilic in part; easily lost in sample preparation; thinly bedded/interbedded with and grading to associated sandstone; occasional thin coals and carbonaceous shale inter-beds; trace very light gray white ash; slightly calcareous; no oil indicators. Coal/Carbonaceous Shale(3100' -3150') = medium to dark gray brown to black;firm to hard;friable in part; hackly in part; generally lignitic to sub-bituminous; common conchoidal fracture and common cleat in better developed fraction; very shaly overall;trace very silty/slightly sandy granular carbonaceous material. 5 CANRIG M Marathon Alaska Production LLC PAXTON 3 Sand/Conglomeratic Sand (3100' -3260')= medium to medium light gray; soft to disaggregated;friable; sub angular to angular to sub spheroidal; coarse lower to medium upper and fine upper grain; trace coarse upper and very coarse grain predominantly translucent white to clear quartz/volcanics; 30 to 40% medium to light gray lithics; common dark gray to black mafic mineral/lithic grains; trace to abundant biotite/phlogopite mica flake coarser material overlays a light gray very sandy siltstone/claystone; siltstone has abundant very fine upper to fine lower angular quartz sand; very slightly to slightly calcareous may be due to safe-carb contamination; no oil indicators. Tuffaceous Claystone/Siltstone(3200' -3300')=light to medium gray; brownish secondary hue in part; soft to slightly firm; clean clayey to silty texture; slightly to very sandy in part; globular irregular to slightly tabular cuttings habit; trace micro-thin carbonaceous lamina; moderately adhesive/cohesive; hydrophilic in part; easily lost in sample preparation;thinly bedded/interbedded with and grading to associated sandstone; occasional thin coals and carbonaceous shale inter-beds; trace very light gray white ash; slightly calcareous; no oil indicators. Sand/Tuffaceous Sand (3360' -3420')= light to very light gray to grayish white; slight brownish secondary hue in part; soft to slightly firm; pulverulent very fine upper to fine lower grain; angular to subangular clear to milky quartz/volcanics predominates; trace smoky quartz; trace dark mafic mineral/ volcanics; entirely matrix supported in fluffy white to brownish white ash/tuff; non to slightly cohesive; non adhesive; hydrophilic/expansive when wet; very slightly calcareous; no oil indicators. Tuffaceous Claystone/Siltstone(3300' -3480') = light to medium gray; brownish secondary hue in part; soft to slightly firm; clean clayey to silty texture; slightly to very sandy in part; common very light gray very fine grain silty sandstone; globular irregular to slightly tabular cuttings habit;trace micro-thin carbonaceous lamina; moderately adhesive/cohesive; hydrophilic in part; easily lost in sample preparation; thinly bedded/interbedded with and grading to associated sandstone/tuffaceous sandstone; very slightly calcareous. Sand/Sandstone(3480' -3600')= medium to medium light gray with medium light greenish gray secondary hues overall, individual grains dominantly light to medium gray to greenish gray, clear to translucent quartz and volcanic glass, dark gray and trace green to bluish green lithics; very fine lower to coarse upper, dominantly fine lower to medium lower; angular to subangular; poorly sorted; dominantly unconsolidated with trace medium gray sandstone; very fine grain; hard; well consolidated; very calcareous cement; scattered light gray sandstone;fragile;very fine grain; commonly grades between a silty sandstone and sandy siltstone. Tuffaceous Claystone/Tuffaceous silt- stone(3580' -3700') =light to medium light gray with light brown and light brownish gray secondary hues; very soft to slightly firm; shapeless, amorphous to wedge shaped cuttings showing pdc bit action"scooped"appearance; silty to clayey to slightly gritty texture; dull to slightly sparkly luster; very soluble moderately expansive; poor to fair cohesiveness; fair to good adhesiveness; non calcareous; trace dark brown to black micro-thin carbonaceous laminations and inclusions in firmer fragments; siltstone commonly grades between sandy siltstone and silty sandstone. Sand (3660' -3740') = medium gray over-all with a moderate salt and pepper appearance, individual lithics dominantly light to medium gray, clear to translucent quartz and volcanic glass, dark gray to black, trace white and greenish gray;fine lower to coarse lower, dominantly medium; angular to subangular; poorly sorted; unconsolidated in soft, mushy clay matrix; non calcareous; trace to common dark brown to black carbonaceous material/coal. 6 CANRIG (""> Marathon Alaska Production LLC PAXTON 3 Tuffaceous Claystone/Tuffaceous Siltstone(3720' -3840')=light to medium light gray with light brown and light brownish gray secondary hues; very soft to slightly firm; formless cuttings; clayey to slightly gritty texture; dull to slightly sparkly luster; very soluble moderately expansive; poor to fair cohesiveness; fair to good adhesiveness; non calcareous; trace dark brown to black micro-thin carbonaceous laminations and inclusions in firmer fragments; siltstone commonly grades between sandy siltstone and silty sandstone. Coal/Carbonaceous Shale(3780'-3880') =dark brown to black; firm to moderately hard; brittle at times; blocky to platy, occasionally irregular shaped cuttings; planar fracture dominant; smooth to gritty texture; earthy to glassy luster; present as very thin beds in dominantly clay and sand formation; no outgassing. Sand/Sandstone(3840' -3960')= medium to medium light gray with a moderate salt and pepper appearance; individual grains dominantly light to medium light gray to dark greenish gray, clear to translucent quartz and volcanic glass, and black; very fine lower to coarse lower, dominantly fine lower to medium lower; angular to subangular; poorly sorted; dominantly unconsolidated with trace medium gray sandstone; very fine grain; hard;well consolidated; very calcareous cement;trace to common dark brown to black carbonaceous shale/coal. Tuffaceous Claystone/Tuffaceous Siltstone(3900' -4020') = light to medium light gray with light brown and light brownish gray secondary hues; very soft to slightly firm; formless cuttings; clayey to slightly gritty texture; dull to slightly sparkly luster; very soluble moderately expansive; poor to fair cohesiveness;fair to good adhesiveness; non calcareous; trace dark brown to black micro-thin carbonaceous laminations and inclusions in firmer fragments; light gray to grayish brown siltstone grades between silty sandstone/sandy siltstone. Sand (3980' -4100')= medium gray to medium light gray overall with individual grains dominantly light translucent gray to medium gray, clear to translucent quartz and volcanic glass, dark gray to black; very fine upper to coarse lower,dominantly fine upper to medium lower; angular to sub-angular; poor to fair sorting; unconsolidated in soft, mushy clay matrix; non calcareous;trace hard medium gray sandstone; very calcareous. Tuffaceous Claystone/Tuffaceous Siltstone(4040' -4140')= light to medium light gray with light brown and light brownish gray secondary hues; very soft; very sticky; shapeless, globular cuttings clayey to slightly gritty texture; dull to slightly sparkly luster; very soluble moderately expansive; poor to fair cohesiveness;fair to good adhesiveness; non calcareous; trace dark brown to black carbonaceous shale/ coal present as very thin beds in dominantly a clay formation Sand (4120' -4200') = medium gray overall with a moderate salt and pepper appearance, individual lithics dominantly light to medium gray, clear to translucent quartz and volcanic glass, dark gray to black, trace white and greenish gray; very fine upper to medium upper, dominantly fine grain; angular to subangular; poor to fair sorting; dominantly unconsolidated; matrix supported in part; matrix is light to very light gray white ash/clay, hydrophilic; material is vertically sorted and occur as thin to moderate beds and interbeds in the associated tuffaceous siltstone/claystone trace to common thin coal and carbonaceous shale interbeds; trace thin ash beds; very slightly to slightly calcareous; no oil indicators. Coal/Carbonaceous Shale(4180'-4300')=dark gray brown to black; very firm to hard; hackly; poorly fissile in part; dull earthy to slightly silky luster; sub-bituminous; trace lignitic material; common conchoidal fracture in harder material; common cleat; trace brown mineral stain on fractures and bedding surfaces; common white ash residue; no to slight visible outgassing; 7 CANRIG M Marathon Alaska Production LLC PAXTON 3 Tuffaceous Siltstone/Tuffaceous Claystone(4300' -4400')= light to medium light gray with light brown and light brownish gray secondary hues; very soft; irregular globular cuttings habit; dull earthy luster with a slight micro-sparkly appearance due to included volcanics and mica; slightly gritty to sandy texture; grades to and interbedded with fine grain tuffaceous sand; slightly adhesive; moderately cohesive; hydrophilic; expansive when wet; occasional moderate coal/carbonaceous shale interbeds; very slightly calcareous. Sand/Sandstone(4380' -4520')= medium to medium light gray with medium greenish gray secondary hues, individual lithics dominantly clear to translucent quartz and volcanic glass, light gray to light greenish gray, medium to dark gray, trace white, black and yellow lithics; very fine upper to rare very coarse upper, dominantly fine upper to medium upper;fair to good sorting in fine to medium range, poor sorting in coarse; angular to sub-angular; dominantly disaggregated with trace light to medium gray sandstone; very fine grain;very hard; well sorted; very calcareous cement. Tuffaceous Claystone/Tuffaceous Siltstone(4460' -4540')=light to medium light gray with light brown and light brownish gray secondary hues; very soft to slightly firm; formless cuttings; clayey to slightly gritty texture; dull to slightly sparkly luster; very soluble moderately expansive; poor to fair cohesiveness;fair to good adhesiveness; non calcareous. Coal/Carbonaceous Shale (4500'4580') =dark brown to black;firm to moderately hard; brittle at times; blocky to platy, occasionally irregular shaped cuttings; planar fracture dominant; smooth to gritty texture; earthy to glassy luster; present as very thin beds in dominantly clay and sand formation; trace visible outgassing bubbles present. Sand/Sandstone(4560' -4700')= medium to medium light gray with moderate salt and pepper appearance, individual grains dominantly clear to translucent quartz and volcanic glass, light gray to light greenish gray, medium to dark gray, trace white and black lithics; very fine upper to rare very coarse lower, dominantly fine upper to medium upper; fair to good sorting in fine to medium range, poor sorting in coarse; angular to subangular;fair to good sorting in fine to medium, poorly sorted in coarse range; dominantly unconsolidated with light gray ashy/clayey supporting matrix;trace light to medium gray sandstone; very fine grain;very well sorted; very hard;very calcareous cement; trace light gray to light grayish brown silty sandstone/sandy siltstone; fragile; soft; non calcareous;trace to common dark brown to black carbonaceous shale/coal; present as very thin interbeds. Tuffaceous Claystone(4680' -4800')= light to medium light gray with light brownish gray secondary hues;very soft; generally shapeless, globular cuttings with occasional firmer wedge shaped; silty to clayey texture; dull, earthy to slightly sparkly luster;very soluble; hydrophilic; slight to moderately expansive; poor to fair cohesiveness; fair to good adhesiveness; trace to common dark brown to black micro-thin carbonaceous laminations and inclusions; non calcareous. Coal/Carbonaceous Shale(4740'-4860') =dark brown to black;firm to moderately hard; brittle at times; blocky to platy, occasionally irregular shaped cuttings; planar fracture dominant; smooth to gritty texture; earthy to glassy luster; present as very thin beds in dominantly clay and sand formation; trace visible outgassing bubbles present. Sand/Sandstone(4780' -4920')= medium to medium light gray, individual grains dominantly clear to translucent quartz and volcanic glass, light gray to light greenish gray, medium to dark gray, trace white and black lithics; very fine upper to rare very coarse lower, dominantly fine upper to medium upper; fair to good sorting in fine to medium range, poor sorting in coarse; angular to sub-angular; fair to good sorting in fine to medium, poorly sorted in coarse range; dominantly unconsolidated with light gray ashy/clayey supporting matrix; abundant thin coal/carbonaceous shales present as thin interbeds in dominantly sand and clay formation. 8 CANRIG M Marathon Alaska Production LLC PAXTON 3 Tuffaceous Claystone/Tuffaceous Siltstone(4880' -4980') = medium to medium light gray with light grayish brown secondary hues; soft; shapeless, globular cuttings; silty to clayey to gritty texture from abundant suspended sands; dull to greasy luster; very soluble; expansive hydrophilic; poor cohesiveness; fair to good adhesiveness; rare firmer fragments have dark brown to black micro-thin carbonaceous inclusions. Sand (4940' -5020')= medium gray over-all with individual grains dominantly clear to translucent quartz and volcanic glass, light to dark gray, black and light to medium greenish gray; very fine upper to rare coarse upper, dominantly fine upper to medium lower; angular to subangular; moderately well sorted; unconsolidated; trace light gray sandstone; very hard;very fine grain;well sorted; very calcareous cement. Coal/Carbonaceous Shale(5000'-5100') = black with dark brown secondary hues; firm to hard; brittle at times; blocky to platy; planar fracture dominant with trace conchoidal and birdeye; smooth to slightly gritty texture; earthy to resinous luster; trace visible outgassing bubbles present. Tuffaceous Siltstone/Claystone(5100' -5200') = medium light to light gray; soft to slightly firm; dull earthy to slightly micro-sparkly luster; common to abundant carbonaceous micro-lamina; slightly adhesive; moderately cohesive; hydrophilic/expansive; thinly bedded/interbedded with occasional moderate beds of silty/tuffaceous sandstone; common thin coal and thicker carbonaceous shale interbeds; slightly calcareous. Carbonaceous Shale(5100' -5200') =med dark gray to dark brownish gray; hard to very firm; non to slightly fissile; angular irregular cuttings habit; dull earthy to grainy luster; silty to slightly sandy;common brown mineral stain of fractures and partings; appears to be laid down in moderate beds; trace to common tuffaceous siltstone interbeds; moderately calcareous. Sand/Sandstone(5220' -5340')= medium light gray; soft to disaggregated; friable in part; sample is collected primarily as mechanically disaggregated loose grains; moderately sorted; medium lower to fine upper and coarse lower grain predominates; occasional very fine grain angular quartz sand loosely aggregated in soft fluffy white ash matrix; material appears generally matrix supported; the matrix material being retained in mud as drill solids; (note: mud weight/solids control has become problematic)individual grains are subangular to angular to sub-spheroidal; translucent white and medium gray lithics in about equal portions; common to abundant clear quartz/volcanics; trace dark mafic mineral/volcanics; matrix is very hydrophilic and easily lost into mud and with sample prep; sandstone is in moderate beds with abundant thin tuffaceous siltstone/claystone, carbonaceous shale and thin ash interbeds; slightly to moderately calcareous; no oil indicators. Coal/Carbonaceous Shale(5320' -5400') =dark gray brown to black; hard to firm; angular irregular to tabular fragments; dull earthy to resinous and sub vitreous luster; sub-bituminous; trace conchoidal fracture; trace pyrite; common cleat; common dark brown mineral stain on fractures and partings; thinly bedded/interbedded; some coal fragments were coated with light gray under clay;trace ash residue on some fragments. Sand (5340' -5500') = medium light gray with a slight brownish secondary hue; soft; sample collected as disaggregated sand and rare coherent sandstone fragments; fine upper to medium lower grain predominates; trace to common coarse lower grains; sub-angular to angular and sub-spheroidal; occasional moderately rounded; trace very fine grain well sorted angular quartz/volcanics in ash matrix; generally appears to be matrix supported though the matrix material is lost in circulation and sample preparation; light to medium gray lithics predominates; 30%to 40%translucent white to clear quartz/volcanics; samples are moderately to very calcareous, may be due to safe-carb contamination. 9 CANRIG M Marathon Alaska Production LLC PAXTON 3 Tuffaceous Claystone/Siltstone(5400' -5500')=medium light to light and medium gray; soft to firm; trace hard; irregular globular to eroded angular fragments; dull earthy to silky/clayey luster; clayey to gritty texture; hydrophilic in part; slightly to non adhesive slightly to moderately cohesive; abundant micro-thin carbonaceous lamina and coal fine inclusions; slightly calcareous;flocculates immediately with hcl application. Sand (5580' -5640')= medium gray over-all with individual grains dominantly clear to translucent quartz and volcanic glass, light to dark gray, black and light to medium greenish gray; very fine upper to medium upper, dominantly fine upper to lower; angular to subangular; moderately well sorted; unconsolidated; very poor sample quality at 5620'sample 25%-75% nut plug. Coal/Carbonaceous Shale(5680' -5760')= dark gray brown to black; hard to firm; angular irregular to tabular fragments; dull earthy to resinous and sub vitreous luster; sub-bituminous;trace conchoidal fracture and cleat in coals; common dark brown mineral stain on fractures and partings; sub fissile in part; thinly bedded/interbedded in associated siltstone/claystone trace lumpy/irregular soft brown sandy/silty lignite. Tuffaceous Claystone/Siltstone(5700' -5800')=medium light to light and medium gray; soft to firm; trace hard; irregular globular to eroded angular fragments; dull earthy to silky/clayey luster; clayey to gritty texture; hydrophilic in part; slightly to non adhesive slightly to moderately cohesive; abundant micro-thin carbonaceous lamina and coal fine inclusions; trace to common very fine upper to lower grain tuffaceous silty sandstone; slightly calcareous; flocculates immediately on application of HCI. Sand (5800' -5900') = medium light to light and medium gray; soft to disaggregated; friable in part; moderately well sorted;fine upper to lower grain predominates;trace medium lower and occasional medium upper and coarse lower grains; clear to translucent white quartz/volcanics predominates; common light to medium gray lithics; trace light gray volcanics; trace dark gray to black mafic mineral/ volcanics; primarily matrix supported in the finer grain material, medium grain portion appears to be grain supported; occurs as thin to moderate interbeds in associated tuffaceous siltstone/claystone; common thin coal and carbonaceous shale interbeds; moderately calcareous may be due to safe-carb contamination. Coal/Carbonaceous Shale(5900' -6040')=dark gray brown to black; hard to firm; angular irregular to tabular fragments; hackly in part; coarsely fissile overall; occasional large fragments very finely fissile; dull earthy to grainy to clean coaly texture; coal is sub-bituminous and generally very shaly; localy clean coal; common conchoidal fracture; abundant cleat; abundant brown mineral residue on fractures and partings; shale fragments commonly coated with slight white ash residue;trace silty/sandy brown lignite in some samples; interbedded with thin to localy moderate beds of tuffaceous siltstone/claystone and tuffaceous sandstone. Tuffaceous Sandstone(6000' -6100')= medium light to light gray; soft; friable well sorted; fine upper to fine lower grain; angular to sub-angular; clear to translucent and smoky quartz/volcanics; entirely matrix supported in soft very light gray ash/clay; matrix is hydrophilic/expansive and easily lost in circulation and sample preparation; sample is moderately calcareous due to safe-carb contamination,formation is very slightly to slightly calcareous; no oil indicators Coal/Carbonaceous Shale(6040' -6200') =dark gray brown to black; hard to firm; angular irregular to tabular fragments; hackly in part; coarsely fissile overall; occasional large fragments very finely fissile; dull earthy to grainy to clean coaly texture; coal is sub-bituminous and generally very shaly; localy clean coal; common conchoidal fracture; abundant cleat; abundant brown mineral residue on fractures and partings; shale fragments commonly coated with slight white ash residue; trace silty/sandy brown lignite in some samples; interbedded with thin to localy moderate beds of tuffaceous siltstone/claystone and tuffaceous sandstone; slight visible outgassing immediately after sample taken, trace after 10 minutes. 10 CANRIG Mk) Marathon Alaska Production LLC PAXTON 3 umnim Sand/Sandstone (6180' -6300')= medium to medium light gray, individual grains dominantly clear to translucent quartz and volcanic glass, light to medium gray to medium light greenish gray,trace lack; very fine lower to medium lower, dominantly fine; angular to subangular; moderate well to very well sorted; dominantly unconsolidated with scattered fine to medium salt and pepper sandstone friable; fragile; very calcareous cement and very fine lower sandstone grading to siltstone; medium to medium light gray; very well sorted; hard to brittle; irregular to tabular cuttings; very calcareous; abundant thin coal/carbonaceous shale beds. Tuffaceous Claystone/Tuffaceous Siltstone(6280' -6360') = medium gray with trace light brown secondary hues;very soft; irregular, rounded to shapeless cuttings; silty to clayey texture; dull to slightly sparkly luster; moderate to very soluble; slight to moderately expansive when hydrated; hydrophilic; poor to fair cohesiveness and adhesiveness; non calcareous; trace dark brown to black micro-thin carbonaceous laminations and inclusions; abundant coal/carbonaceous shale beds throughout. Coal/Carbonaceous Shale(6320'-6440')= black with very dark gray and dark brown secondary hues; hard to brittle; sectile at times; blocky to platy; planar fracture dominant with occasional conchoidal and birdeye fracture present; silty to smooth texture; earthy to polished luster; trace visible outgassing observed. Sand/Sandstone (6380' -6500')= medium to medium light gray, individual grains dominantly clear to translucent quartz and volcanic glass, light to medium gray black; very fine lower to medium lower, dominantly fine; angular to subangular; moderate well to very well sorted; dominantly unconsolidated with scattered fine to medium salt and pepper sandstone friable;fragile; non to slightly calcareous cement; ashy/clayey supporting matrix common;trace medium gray sandstone; hard; very fine; well sorted;very calcareous cemented; abundant coal slough in samples(25%-50%) resulting in very poor sample quality. Tuffaceous Claystone/Tuffaceous Siltstone(6460' -6580')= medium gray with light medium gray secondary hues; very soft; irregular, rounded to shapeless cuttings; silty to clayey texture; dull to slightly sparkly luster; moderate to very soluble; slight to moderately expansive; poor to fair cohesiveness and adhesiveness; non calcareous; trace to common dark brown to black micro-thin carbonaceous laminations and inclusions. Sand/Sandstone(6530' -6640')= medium gray overall with individual grains dominantly medium to dark gray, clear to translucent quartz and volcanic glass, medium to dark greenish gray; very fine upper to coarse lower, dominantly fine lower to medium lower; angular to subangular; moderate to moderately well sorted; unconsolidated with trace light gray ashy/clayey supported sandstone;very fragile; non calcareous; trace sandstone; medium light gray;very fine lower occasionally grading to sandy siltstone; very well sorted; very hard to brittle; very calcareous. Tuffaceous Sandstone/Sand (6640'-6750')= light to very light gray with a slight brownish secondary hue; medium gray/light olive gray in part; soft to slightly firm to disaggregated; very fine upper to fine lower grain moderately well sorted tuffaceous sandstone predominates; abundant to 20%disaggregated fine upper to medium lower grain supported loose sand with trace coarser grains;tuffaceous material contains angular to sub rounded clear to translucent quartz/volcanics; trace to common medium to light gray lithic/mineral grains;trace dark gray to black mafic mineral/volcanics; trace to common coal fines; material is generally very silty and grades to interbedded sandy tuffaceous siltstone; matrix is a light brownish gray to off white ash/tuff; occasional thin coal/shale interbeds; slightly to moderately calcareous; note samples contaminated with safe-carb (caco3) mud additive; no oil indicators. 11 CANRIG (AA) Marathon Alaska Production LLC PAXTON 3 Tuffaceous Siltstone/Sandstone(6750' -6850') = light gray with a slight brownish secondary hue; medium light gray in part; soft to slightly firm; friable/disaggregated in part; primarily sandy tuffaceous siltstone, grading to silty tuffaceous sandstone; localy as fine upper to medium lower disaggregated lithic sand, notably at 6810 to 6830'; dull earthy to ashy luster; smooth to gritty texture; included sand is subangular to subrounded to sub-spheroidal translucent white to clear quartz/volcanics; trace light to medium gray volcanics/lithics; occasional trace dark mafic mineral grains; coarser material is dominantly medium to light gray lithics with 20 to 30%quartz/volcanics; occasional thin coal interbeds; abundant medium to light gray claystone interbeds moderately to slightly calcareous; no oil indicators. Coal (6880' -6950')= black to dark gray and brown; hard to soft; hackly; sandy/gritty in part; common brown stain on partings and fractures; bituminous to lignitic; common conchoidal fracture/cleat in harder material. Sand/Tuffaceous Sandstone(6860' -6950')= light to medium light gray with a slight greenish to brownish secondary hues; soft to disaggregated; moderately well sorted;friable; fine upper to fine lower grain;trace medium grain; primarily matrix supported; locally grain supported loose disaggregated sand; subrounded to subangular and angular grain; primarily translucent to clear quartz/volcanics; trace to locally dominant light to medium gray and brown lithics; matrix is soft very light gray white ash/tuff; grades to and interbedded with sandy tuffaceous siltstone and occasional thin tuffaceous claystones; trace to common clean ash interbeds; very slightly to trace calcareous. Tuffaceous Claystone/Tuffaceous Siltstone(7020' -7120') = light gray to medium brownish gray with brown secondary hues very soft; fragile; irregular, rounded cuttings; silty to clayey texture earthy to sparkly luster; moderately soluble; hydrophilic; slightly expansive poor cohesiveness and adhesiveness; non calcareous;trace to common dark brown to black micro-thin carbonaceous laminations and inclusions. Coal/Carbonaceous Shale(7080'-7170')= black with dark brown secondary hues; hard to brittle; blocky to platy; planar fracture dominant; smooth to slightly gritty texture; earthy to resinous luster lignitic to bituminous; trace visible outgassing bubbles observed. Sand/Tuffaceous Sandstone(7120'-7240')= light gray to light greenish gray overall with individual grains dominantly clear to translucent quartz and volcanic glass, trace medium to dark gray and greenish gray; very fine lower to medium lower, dominantly fine grain; angular to subangular; moderate well to very well sorted; disaggregated to friable; sandstone is ash supported; very light gray white ashy matrix;fragile to pulverulent very calcareous cement; common to abundant glass shards; abundant loose ashy tuff; fragile;very light gray to white; non to very calcareous. Tuffaceous Claystone/Tuffaceous Siltstone(7200' -7320') = light gray to medium brownish gray with brown secondary hues very soft; fragile; irregular, rounded cuttings; silty to clayey texture earthy to sparkly luster; moderately soluble; hydrophilic; slightly expansive poor cohesiveness and adhesiveness; non calcareous;trace to common dark brown to black micro-thin carbonaceous laminations and inclusions; trace to common glass shards in ashy component. Coal/Carbonaceous Shale(7270'-7360') = black with very dark brown secondary hues;very firm to hard; brittle; blocky to platy; planar fracture dominant with trace conchoidal and birdeye fracture present; smooth to slightly gritty texture; polished to occasionally earthy luster; lignitic to bituminous; trace visible outgassing bubbles observed. Sand/Tuffaceous Sandstone(7320'-7414')= light gray to light brownish gray overall with individual grains dominantly clear to translucent quartz and volcanic glass,trace medium to dark gray and greenish gray; very fine lower to medium lower, dominantly fine grain; angular to subangular; moderate well to very well sorted; disaggregated to friable; sand stone is ash supported;very light gray white ashy matrix; fragile to pulverulent moderate to very calcareous cement. 12 CANRIG A044 Marathon Alaska Production LLC PAXTON 3 3.2. SAMPLING PROGRAM AND DISTRIBUTION Paxton 3 Set Type and Purpose Interval Frequency Distribution Marathon Oil Company 3537'—4600' 20' c/o C &M Storage, Inc. 3311 S U.S. Highway 77 4600'—5160' 10' A Washed and Dried 5160'—6500' 20' Schulenburg,TX 78956 6500'—7414' 10' Attn: David Gorney (713)296 3473 BOX INTERVAL : Box 1 =2537'—3260' Box 2= 3260'—3940' Box 3= 3940'—4670' Box 4=4670'—5150' Box 5= 5150'—6160' Box 6=6160'—6870' Box 7=6870'—7414' 7 dry boxes, 269 sample envelopes 13 CANRIG M Marathon Alaska Production LLC PAXTON 3 4. DRILLING DATA 4.1. DAILY ACTIVITY SUMMARY 2/28/2010: Continue rig up Glacier 1. Rig up and test BOPs per plan. Nipple down diverter and re nipple up per state inspector. Pick up and make up BHA#1 3/01/3010: PTSM and pick up/make up BHA. Orientate MWD. PJSM and drill from 98'to 142'. Packed off hole. Stand back 1 stand, break free and circulate hole clean. Drill from 141'to 200'. Circulate hole clean. Stand back HWDP. PJSM, pick up/make up and run into hole with 5"drill pipe. Wash down from 171'to 200'. Drill from 200'to 332'. PTSM and drill from 332'to 408'. Circulate hole clean. PJSM and pull out of the hole from 408'to 170'. PJSM and RIH from 170'to 408'. Pick up/make up shock sub and crossover. Continue drilling from 408'to 841'. 3/02/2010: PTSM and drill from 841'to 1362'. Pump 40 bbl high vis sweep at a285'. PTSM and drill from 1362'to 1728'. Circulate while troubleshooting#1 transmission. Pump sweep and circulate hole clean. Circulate while troubleshooting. 3/03/3010: PTSM and install driveline to#1 Denison and check flow. PJSM and pull out of the hole with 5"drill pipe, heavy wall and BHA to casing shoe. PJSM and blow down top drive and mud-lines. PJSM and remove faulty transmission. PTSM/PJSM and install new transmission and function test all systems/ perform no-load test on transmission. 3/04/2010: PTSM and install guards on transmission. Check fluid level &rpms. PJSM and run into hole to 1665'.Wash down from 1665'to 1728'. Drill from 1728'to 2076'. PTSM and drill from 2076'to 2537'. Circulate hole clean. 3/05/3010: Continue circulating hole clean. PJSM and wipe hole to 364'. PJSM and run into hole to bottom. Circulate bottoms up,wiper gas 178u. Pull out of the hole to surface. Lay down BHA and download MWD data. PJSM and rig up to run 9 5/8"casing. PJSM and run into hole with 9 5/8"casing. 3/06/3010: Continue to run into hole with 9 5/8"casing to 2520'. Work casing string and circulate through casing. PJSM and rig up to cement. Mix and pump cement per plan. Rig down from cement run and clean all lines and equipment. Rig down from casing run. Nipple down diverter. Haul off mud. PJSM, clean pits and fill with water. Nipple down BOP stack. Cut and dress 9/5/8"and 20"casing cuts. PJSM; prep well head.Attempt to install. Fold up stabbing board. Change out bales and elevators. Build mud. 3/07/2010: Dump mud and clean pits. Mix 500 bbls flo-pro mud for displacement. Mix spacer in pit 5. Re- face casing cut off and re-install and test well-head. Nipple up and test BOPS. Repair top drive. 3/08/3010: Continue Nipple up and test,work on topdrive. Pick up BHA and run into hole to clean out. Canrig- re-calibrate gas detectors. Pick up drill pipe.Top drive malfunction. Work on topdrive problem. Continue running into hole picking up pipe. Top drive clutches still malfunctioning. Pull out of the hole racking back drill pipe stands. Work on top drive. 3/09/2010: PJSM, Service and troubleshoot top drive. PJSM, pick uo 5"drill pipe. Drift, make up and run into hole with drill pipe then pull out and rack back. Run into hole with BHA#2 and tag top of plug at 2388 PJSM, drill out shoe track from 2388'to 2520'. PJSM,clean out from 2520'to 2537' and drill new hole to 2557'. Pump spacer, sweep and displace to new flo-pro mud. PTSM and run FIT at 2557'/1444'tvd, 15.2ppg/EMW. Blow down mud system, PJSM and pull out of the hole. Stand back BHA. Remove sub- floor sound track and blow down. PJSM and pick up/make up BHA#3/MWD. 14 CANRIG M Marathon Alaska Production LLC PAXTON 3 3/10/2010: Troubleshoot MWD/Directional tools. Test communication in directional tools-fail. Re- Configure and re-test tools-fail. Blow down lines and re-configure/re-test tools OK. Run into hole to 2471' and circulate bottoms up.4 units gas at bottoms up. Wash down to 2557'and drill from 2557'to 2723'. Poor communication with directional tools. Circulate bottoms up and pull out of the hole to BHA. Troubleshoot directional tools. Lay down sources. Continue troubleshoot BHA/directional tools. 3/11/2010: Continue to troubleshoot and test directional/MWD tools until repaired. PJSM and load radioactive sources. PJSM and run into hole to2541'. Fill pipe and circulate. Run into hole from 2541'to 2723'. Drill from 2723'to 3049'. 3/12/2010: PTSM and drill from 3049'to 3704'. PTSM and drill from 3704'to 4254'. Circulate hole clean. Mix and pump dry job. PJSM and wipe hole from 4254'to 3488'at midnight. 3/13/2010: PJSM, continue wiper trip, pull out of the hole from 3449'to shoe at 2520'. PJSM and service rig. PJSM and cut and slip drilling line. PJSM and run into the hole from 2520'to bottom at 4254'. PJSM and drill from 4254'to 5319'. 3/14/2010: PTSM and drill from 5319'to 5588'. PJSM and repair mud pump#1. Circulate bottoms up. Circulate hole clean. Mix and pump dry job. PJSM and pull out of the hole/wipe hole from 5355'to 4254'. Continue repair on mud pump#1. PJSM and run into hole from 4254'to bottom. Mix and pump sweep. Downlink MWD/DD. PJSM and drill from 5355'to 5673'. Circulate bottoms up. Circulate hole clean. PJSM and pull out of the hole for bit/BHA from 5673'to 2428'at midnight. 3/15/2010: PTSM and continue pulling out of the hole from 2428'to surface. Rack back- L/D BHA. PJSM and L/D radioactive sources. Download MWD. Service rig. Make up bit#4/BHA#5. PJSM and load radioactive sources. Surface function test MWD/DD tools; 59 bbl mud pumped to trip tank, overflow to cellar 19 bbls none spilled outside containment. PJSM and run into hole to bottom. Downlink MWD/DD and drill from 5673'to 5850'at midnight. 3/16/2010: PTSM and drill from 5864'to 6410'. PTSM and drill from 6410'to 6664'. Pump pressure drop noted, PJSM and clean mud intake. Drill from 6664'to 6801'. 3/17/2010: PTSM, Drill from 6801'to 6854'. PJSM and circulate bottoms up. Circulate hole clean. Monitor well (static). PJSM and pull out of the hole from 6854'to 5619', back-reaming. PJSM and circulate bottoms up. Check for flow. PJSM and continue wiper trip from 5619'to 4877' back-reaming. PJSM and troubleshoot top drive hydraulics. Wait on hydraulic pump. PJSM and replace hydraulic pump on top drive. Troubleshoot electrical problem. Unplug un-loader valve. PJSM and continue pulling out of the hole back-reaming from 4877'to shoe. PJSM, service rig. PJSM, change plug on top drive cord and test then install 37 pin cable to top drive. 3/18/2010; PTSM and run into hole from 2520'to 4764'. PJSM and fill pipe. PJSM and run into hole from 4764'to 6791'. PJSM and fill pipe, wash from 6791'to 6854', 20'fill. Down link MWD/DD and run survey. Drill from 6854'to 7185'. PTSM and drill from 7185'to 7414'. Circulate hole clean and check for flow. PJSM and pull out of the hole(wipe hole)from 7414'to 7172'. Back-ream from 7172'to 6919'. Broke rod guide support bolt on top drive. Torque all bolts and safety wire. Continue pulling out of the hole from 6919'to 6854'. 3/19/2010: PTSM, Run into hole from 6854'to 7414'. PJSM and circulate bottoms up then pull out of the hole&R.F.T. PJSM and re-log gamma ray from 7245'to 7170'. PJSM and pull out of the hole pressure testing at points. Begin pressure testing at points between 7125'and 5080'. PTSM and continue pressure testing at points to 2800'. PJSM, blow down lines and top drive and pull out of the hole. PJSM and lay down BHA elements. 15 CANRIG M Marathon Alaska Production LLC PAXTON 3 3/20/2010: PTSM, handle BHA. Download MWD/LWD/DD tools. PJSM, rig down auto-track. Download tool. Clean up rig floor. PJSM, Pick up test tools, prep rig and test BOPs per plan. PTSM,test plug stuck. Pump out stack and equipment. Unscrew from test plug. Screw into test plug with 5"drill pipe and pull free with blocks, 10K over. PJSM, install wear bushing. Blow down choke, top drive and mud lines.Adjust brakes. PJSM, make up bit and bit sub with HWDP and jars. Run into hole with 5"drill pipe to 7414', 5'fill. Circulate hole clean. Check for flow. Mix and pump dry job. Drop rabbit. 3/21/2010: PTSM, blow down top drive and pumps. PJSM, POOH from 7414 to 659'. PJSM, fill trip tank and blow down. PJSM, continue POOH and L/D HWDP, recover rabbit at top of jars. PJSM, rig up floor to run 4'/2" production casing. PJSM, R/U Weatherford tools. PJSM, run 4'/2' liner assembly. PTSM, continue to run 4'/" liner as per program. Pump casing volume. Continue to run into hole with liner as per program. PJSM, R/U and circulate liner. Change bails and elevators. R/U seal bore assembly. R/U bigger Weatherford tongs. Pick up stinger. M/U wiper plug and install seal bore. M/U hanger. R/D Weatherford tongs. Put in pal mix. 3/22/2010; PTSM and run into hole with 4'/" liner&hanger on drill pipe to 7414'. Circulate and attempt to rotate. Space out. Make up cement head. PJSM and pump cement per plan. Drop wiper and displace with 90 bbls brine and 20 bbls 9.5ppg mud. No bump plug. Lay down cement head and PUPs. PTSM and pull out of the hole with 5"drill pipe. PJSM, lay down hanger and stinger. Rig down rig tongs and spinners. Rig up Weatherford. Lay down seal bore assembly. PJSM, pull out of the hole with 4.5" liner, 23 joints. Rig down Weatherford tools. Clean cement from rig floor and trip tank. Pick up flush tool and flush BOP stack and function test. PJSM blow down top drive. Stage and strap BHA,jars and HWDP. PJSM, Pick up/make up and run into hole with bit, BHA and HWDP. 3/23/2010: Continue to drift, pickup, makeup and run in hole with HWDP to 701'. Continue running in hole with 5"drill pipe to 2530' (just outside shoe). Circulate bottoms up. Pull back into shoe to transfer fluid. Continue circulating while waiting on truck. Perform transfer while circulating. Wash down from 2530'and tag fish at 3264'. Stand back 1 stand. Resume circulating and circulate out. Pull out of hole from 3236'to 2473'. (Ream and backream through tight spot at 2905'on way out). Circulate out. Check for flow. Pull out of hole from 2473'to top of HWDP at 701'. Wait on orders. Run back in hole from 701'to 2473'. Break circulation, fill pipe and monitor hole while continuing to circulate. Continue running in hole from 2473'to 3230'. Break circulation and displace hole with new mud. Check for flow. Pull out of hole with 5"drill pipe and HWDP. Pull, break and lay down jars, stabilizers, CSDPs, crossover, bit sub and bit. Stage fishing tools. Change shoe and Ext on boot basket. Pick up, make up and run in hole fishing assembly(shoe, wash pipe Ext, boot bucket, LBS, oil jars). Continue running in hole with 5" HWDP and drill pipe to 2590'. Break circulation and wash down from 2590'to 3264'.Wash over fish from 3264'to 3269'. 3/24/2010: Continue washing over fish from 3269'to 3273'. Circulate bottoms up. Pull out of hole from 3273'to top of HWDP at 661'. Pull and stand back HWDP. Lay down wash pipe. Clean out basket. Pick up and make up mill. Service carrier. Grease drive lines. Grease crown. Lay down remaining mill assembly. Lube topdrive and blocks. Slip drilling line. Pick up, make up and run in hole special assembly (cutter shoe, multiple mills,wash pipe Exts, crossovers, boot basket, bumper sub, oil jars)to wash over, mill and dress the previously washed-over uppermost section of 4 1/2" liner. Continue running in hole with 5" HWDP and drill pipe to 2820'. Break circulation.Wash down from 2820'to 3264'. Mill and dress outside top of fish (with washover cutters)from 3264'to 3266'. Continue milling and dressing down with muli- stage mills(to 3279'with outside washover cutters, to 3271'with small internal mill and 3268'with top edge mill). Circulate out. Check for flow. Pump dry job. Pull out of hole to top of HWDP. Pull, break and lay down 5" HWDP. Pull out milling-dressing assembly above floor and inspect. Break and lay down assembly tools(cutter shoe, multiple mills,wash pipe Exts, crossovers, boot basket, bumper sub, oil jars). Clean boot basket. Wash and inspect metal shavings from boot basket. 16 CANRIG M Marathon Alaska Production LLC PAXTON 3 3/25/2010:Clear and clean rig floor. Lay down pipe elevators. Change out bails. Pick up and install liner elevators. Rig up Weatherford. Hold pre-job meeting on running 4 1/2" liner. Pick up special Baker overshot with lip guide and internal 2-stage combined basket grapple-packoff. Make up overshot to CS cementing tool, pup joint and first joint of liner. Run 4 1/2" liner as per Marathon. Rig down and load off Weatherford floor equipment. Change out bails and elevators and prep rig floor to run drill pipe. Pick up and make up liner hanger assembly. Rig down and load off Weatherford tongs. Break circulation. Continue running dual assemblies in hole on 5"drill pipe from 1015'to 3233'. Continue circulating and make up cementing head with pup joint. Wash down from 3233'and tag polished stub end with lip guide at 3265'. Engage liner stub with overshot and slide down 4'to close with packoff. Pressure up to 1100psi and hold for 5 minutes to test overshot-liner seals. Pressure up to 1900psi to open DV tool. Set liner hanger and circulate out. Switch to cement line and pump 3 bbls water to fill lines. Test lines to 4500psi. Mix and pump 40 bbls of 10.0ppg MCS4 sweep(using 34.8bbls of fresh water). Follow sweep with 64.64 bbls of 15.8ppg cement slurry(mixed with 305 sacks of Class G cement plus additives and accelerants to 35.8 bbls of water to mix to result in 4.932 gal/sk and 1.19 cuft/sk). Close valve to DP and open lines to wash-up line. Pump 5 bbls water(until returns are clean). Open back to drill pipe. Drop plug. Pump 53.5 bbls mud(slowing rate to 1-2 bpm after 50 bbls) and bump plug with 1000psi over displacement pressure. Bleed off to check that DV ports are closed. Pressure up to 3500psi to release from hanger. Bleed off pressure and confirm tool is free from hanger. Turn over to rig. Put 500psi on drill pipe. Pull running tool free and circulate out spacer and 2 bbls of excess cement to surface. Rig down and lay down cementing head. Blow down cementing lines. Clean up rig floor. Pull out of hole laying down 5"drill pipe. Lay down hanger running tool. Pick up cementing head and make service breaks. Pick up and make up polish mill assembly(polish mill, extension subs, top dress mill). Run in hole with polish mill assembly and 5"drill pipe to 2262'. Polish seal bore and liner top. Pull out of hole laying down 5"drill pipe. 3/26/2010: 3/27/2010: 17 CANRIG CO U) p O O co CO f. N. CO (f0 LC) CO a- CO 0 CO OD O N CO CO CO CO CD N. CO J 0 CO CA O N CO N f. O CO CO N CA CO CO CO CO CA LO CO 00 CO CO CO Q O7 O O M of l0 of CO M M M N M M M CO t0 O ui Nf Ni Nf a) V r N CO CO tO M N N CO CO CO N a- N CO CO • 7 p) O ( N N O CO CO N O LO N a- 0 A CO CM O CM O E O • M O CO CO CO C) N CO (O ui 4 V 4 T' 4 4 M M M C N O N N. 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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 98/98 MW 8.9 VIS 68 PV 24 YP 26 FL 12 Gels 9/18 CL- 400 FC 2 SOL 3 SD - OIL /97 MBL 25 pH 9.2 Ca+ 20 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 N/A PRESENT LITHOLOGY DAILY ACTIVITY Continue rig up Glacier 1.Rig up and test BOPS per plan.Nipple down diverter and re niopple up per state inspector.Pick up and SUMMARY make up BHA#1 EPOCH PERSONNEL ON BOARD 2 DAILY COST DML 2225;RW 555 I REPORT BY J.Lundy Marathon Oil Company El EPOCH Paxton Field DAILY WELLSITE REPORT Paxton 3 REPORT FOR R.Lawson;G.Pribilski DATE Mar 01,2010 DEPTH 861 PRESENT OPERATION Drilling TIME 00:24:00 YESTERDAY 98 24 HOUR FOOTAGE 763 CASING INFORMATION 20"@ 98' DEPTH INCLINATION AZIMUTH VERTICAL DEPTH SURVEY DATA 171 1.36 17.76 170.98 783 31.41 349.82 746.59 BIT INFORMATION INTERVAL CONDITION REASON NO. SIZE TYPE S/N JETS IN OUT FOOTAGE HOURS T/B/C PULLED 1 12.25 HCC-MXL-1 6044740 3-18,1-16 98 Still In 861 10.83 DRILLING PARAMETERS HIGH LOW AVERAGE CURRENT AVG RATE OF PENETRATION 192.5 @ 124 4.3 @ 171 83.6 103.26430 FT/HR SURFACE TORQUE 6064 @ 148 74 @ 326 919.8 236.11305 AMPS WEIGHT ON BIT 21 @ 746 0 @ 780 8.0 12.13841 KLBS ROTARY RPM 68 @ 752 -7 @ 860 20.4 6.12825 RPM PUMP PRESSURE 1185 @ 799 278 @ 120 761.5 1012.19635 PSI DRILLING MUD REPORT DEPTH 805/782 MW 9.0 VIS 61 PV 22 YP 21 FL 12.2 Gels 10/18 CL- 550 FC 2 SOL 3 SD 0.3 OIL /97 MBL 25 pH 8.9 Ca+ 40 CCI MWD SUMMARY INTERVAL TO TOOLS GAS SUMMARY(units) HIGH LOW AVERAGE DITCH GAS 11 @ 856. 0 @ 568 2.1 TRIP GAS 0 CUTTING GAS 0 @ @ WIPER GAS 0 CHROMATOGRAPHY(ppm) SURVEY 0 METHANE(C-1) 2288 @ 856 54 @ 568 407.2 CONNECTION GAS HIGH 0 ETHANE(C-2) @ @ AVG 0 PROPANE(C-3) @ @ CURRENT 0 BUTANE(C-4) @ @ CURRENT BACKGROUND/AVG 4/2 PENTANE(C-5) @ @ HYDROCARBON SHOWS INTERVAL LITHOLOGY/REMARKS GAS DESCRIPTI ON LITHOLOGY N/A PRESENT LITHOLOGY DAILY PTSM and pick up/make up BHA.Orientate MWD.PJSM and drill from 98'to 142'.Packed off hole.Stand back 1 stand,break free and ACTIVITY circulate hole clean.Drill from 141'to 200'.Circulate hole clean.Stand back HWDP.PJSM,pick up/make up and run into hole with 5"drill pipe. SUMMARY Wash down from 171'to 200'.Drill from 200'to 332'.PTSM and drill from 332'to 408'.Circulate hole clean.PJSM and pull out of the hole from 408'to 170'.PJSM and RIH from 170'to 408'.Pick up/make up shock sub and crossover.Continue drilling from 408'to 841'. EPOCH PERSONNEL ON BOARD 2 DAILY COST DML 2525;RW 555 REPORT BY J.Lundy Marathon Oil Company EPOCH Paxton Field DAILY WELLSITE REPORT till Paxton 3 REPORT FOR J.Nicholson;G.Pribilski DATE Mar 02,2010 DEPTH 1728 PRESENT OPERATION Circulate,Work pipe TIME 2400 YESTERDAY 841 24 HOUR FOOTAGE 887 CASING INFORMATION 20"@ 98' DEPTH INCLINATION AZIMUTH VERTICAL DEPTH SURVEY DATA 1670 73.09 353.46 1293.37 P 1729 73.09 353.46 1309(projected) BIT INFORMATION INTERVAL CONDITION REASON NO. SIZE TYPE S/N JETS IN OUT FOOTAGE HOURS T/B/C PULLED 1 12.25 HCC-MXL-1 6044740 3-18;1-16 98 still in 1630 25.63 DRILLING PARAMETERS HIGH LOW AVERAGE CURRENT AVG RATE OF PENETRATION 123.1 © 1308 9.0 @ 1205 70.2 69.35614 FT/HR SURFACE TORQUE 6989 @ 1207 74 @ 906 1925.0 5051.60498 AMPS WEIGHT ON BIT 28 © 1320 4 @ 1087 16.0 13.58778 KLBS ROTARY RPM 68 @ 1390 -7 @ 1684 25.1 61.76063 RPM PUMP PRESSURE 1735 @ 1687 591 @ 915 1409.5 1469.27515 PSI DRILLING MUD REPORT DEPTH 1724/1314 MW 9.2 VIS 69 PV 27 YP 25 FL 7.5 Gels 10/18 CL- 400 FC 1 SOL 4 SD 0.1 OIL 2/95 MBL 26 pH 8.2 Ca+ 60 CCI MWD SUMMARY INTERVAL TO TOOLS GAS SUMMARY(units) HIGH LOW AVERAGE DITCH GAS 33 © 1468 2 @ 1222 8.1 TRIP GAS 0 CUTTING GAS 0 @ @ WIPER GAS 0 CHROMATOGRAPHY(ppm) SURVEY 0 METHANE(C-1) 6558 @ 1468 432 @ 1222 1582.5 CONNECTION GAS HIGH 0 ETHANE(C-2) @ @ AVG 0 PROPANE(C-3) @ @ CURRENT 0 BUTANE(C-4) @ © CURRENT BACKGROUND/AVG 2/3 PENTANE(C-5) @ @ HYDROCARBON SHOWS None INTERVAL LITHOLOGY/REMARKS GAS DESCRIPTI ON LITHOLOGY N/A PRESENT LITHOLOGY DAILY ACTIVITY PTSM and drill from 841'to 1362',Pump 40 bbl high vis sweep at a285'.PTSM and drill from 1362'to 1728'.Circulate while SUMMARY troubleshooting#1 transmission.Pump sweep and circulate hole clean.Circulate while troubleshooting. EPOCH PERSONNEL ON BOARD 2 DAILY COST DML 2525;RW 555 REPORT BY J.Lundy Marathon Oil Company Paxton Field DAILY WELLSITE REPORT PI EPOCH Paxton 3 REPORT FOR J.Nicholson;G.Pribilski DATE Mar 03,2010 DEPTH 1728 PRESENT OPERATION Trip into hole TIME 2400 YESTERDAY 1728 24 HOUR FOOTAGE 0 CASING INFORMATION 20"@ 98' 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 1 12.25 HCC-MXL-1 6044740 3-18;1-16 98 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 1728/1311 MW 9.3 VIS 77 PV 25 YP 28 FL 7.6 Gels 11/19/ CL- 400 FC 1 SOL 3.5 SD 0.2 OIL 2/95 MBL 25 pH 8.4 Ca+ 60 CCI MWD SUMMARY INTERVAL TO TOOLS GAS SUMMARY(units) HIGH LOW AVERAGE DITCH GAS @ @ TRIP GAS 0 CUTTING GAS @ @ WIPER GAS 0 CHROMATOGRAPHY(ppm) SURVEY 0 METHANE(C-1) @ @ CONNECTION GAS HIGH 0 ETHANE(C-2) @ @ AVG 0 PROPANE(C-3) @ @ CURRENT 0 BUTANE(C-4) @ @ CURRENT BACKGROUND/AVG 2/2 PENTANE(C-5) @ @ HYDROCARBON SHOWS None INTERVAL LITHOLOGY/REMARKS GAS DESCRIPTION LITHOLOGY N/A PRESENT LITHOLOGY DAILY ACTIVITY PTSM and install driveline to#1 Denison and check flow.PJSM and pull out of the hole with 5"drill pipe,heavywall and BHA to casing shoe. SUMMARY PJSM and blow down top drive and mud-lines.PJSM and remove faulty transmission.PTSM/PJSM and install new transmission and function test all systems/perform no-load test on transmission. EPOCH PERSONNEL ON BOARD 2 DAILY COST DML 2525;RW 555 REPORT BY J.Lundy Marathon Oil Company Paxton Field DAILY WELLSITE REPORT El EPOCH Paxton 3 REPORT FOR J.Nicholson;G.Pribilski DATE Mar 04,2010 DEPTH 2537 PRESENT OPERATION Circulating prior to wiper trip TIME 2400 YESTERDAY 1728 24 HOUR FOOTAGE 809 CASING INFORMATION 20"@ 98' DEPTH INCLINATION AZIMUTH VERTICAL DEPTH SURVEY DATA 2479 81.92 353.18 1434.83 BIT INFORMATION INTERVAL CONDITION REASON NO. SIZE TYPE S/N JETS IN OUT FOOTAGE HOURS T/B/C PULLED 1 12.25 HCC-MXL-1 6044740 3-18;1-16 98 2537 2435 40.47 Still in hole TD DRILLING PARAMETERS HIGH LOW AVERAGE CURRENT AVG RATE OF PENETRATION 111.6 @ 2427 5.0 @ 1764 61.4 45.50453 FT/HR SURFACE TORQUE 8648 © 1875 103 © 1897 4904.2 5345.23242 AMPS WEIGHT ON BIT 33 © 1764 -2 @ 1793 18.6 19.92874 KLBS ROTARY RPM 68 @ 1884 -7 @ 2364 52.9 61.76063 RPM PUMP PRESSURE 1964 @ 2316 881 @ 1729 1694.4 1828.01819 PSI DRILLING MUD REPORT DEPTH 2489/1435 MW 9.4 VIS 67 PV 25 YP 27 FL 6.6 Gels 9/15/ CL- 400 FC 1 SOL 4 SD TR OIL 3/94 MBL 23.5 pH 8.2 Ca+ 60 CCI MWD SUMMARY INTERVAL TO TOOLS GAS SUMMARY(units) HIGH LOW AVERAGE DITCH GAS 63 @ 2421 2 @ 1793 11.4 TRIP GAS 0 CUTTING GAS @ @ WIPER GAS 65u©1728' CHROMATOGRAPHY(ppm) SURVEY 0 METHANE(C-1) 12507 @ 2421.00000 518 @ 1763.00000 2281.1 CONNECTION GAS HIGH 12 ETHANE(C-2) @ @ AVG 2 PROPANE(C-3) @ @ CURRENT 12 BUTANE(C-4) @ @ CURRENT BACKGROUND/AVG 4/6 PENTANE(C-5) @ @ HYDROCARBON SHOWS None INTERVAL LITHOLOGY/REMARKS GAS DESCRIPTION LITHOLOGY N/A PRESENT LITHOLOGY DAILY ACTIVITY PTSM and install guards on transmission.Check fluid level&rpms.PJSM and run into hole to 1665'.Wash down from 1665'to 1728'. SUMMARY Drill from 1728'to 2076'.PTSM and drill from 2076'to 2537'.Circulate hole clean. EPOCH PERSONNEL ON BOARD 2 DAILY COST DML 2525;RW 555 REPORT BY J.Lundy Marathon Oil Company EPOCH Paxton Field DAILY WELLSITE REPORT Ell Paxton 3 REPORT FOR J.Nicholson;G Pribilski DATE Mar 05,2010 DEPTH 2537 PRESENT OPERATION RIH with casing TIME 2400 YESTERDAY 2537 24 HOUR FOOTAGE 0 CASING INFORMATION 20"@ 98' DEPTH INCLINATION AZIMUTH VERTICAL DEPTH SURVEY DATA BIT INFORMATION INTERVAL CONDITION REASON NO. SIZE TYPE S/N JETS IN OUT FOOTAGE HOURS T/B/C PULLED 1 12.25 HCC-MXL-1 6044740 3-18;1-16 98 2537 2439 40.47 TD 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 2537/1443 MW 9.6 VIS 56 PV 18 YP 22 FL 6.3 Gels 9/12/16 CL- 440 FC 1 SOL 4.5 SD 0.1 OIL 3/93 MBL 25 pH 8.2 Ca+ 60 CCI MWD SUMMARY INTERVAL TO TOOLS GAS SUMMARY(units) HIGH LOW AVERAGE DITCH GAS @ @ TRIP GAS 0 CUTTING GAS @ @ WIPER GAS 178 CHROMATOGRAPHY(ppm) SURVEY 0 METHANE(C-1) @ @ CONNECTION GAS HIGH 0 ETHANE(C-2) @ @ AVG 0 PROPANE(C-3) © © CURRENT 0 BUTANE(C-4) @ @ CURRENT BACKGROUND/AVG 4/4 PENTANE(C-5) © @ HYDROCARBON SHOWS None INTERVAL LITHOLOGY/REMARKS GAS DESCRIPTION LITHOLOGY N/A PRESENT LITHOLOGY DAILY ACTIVITY Continue circulating hole clean.PJSM and wipe hole to 364'.PJSM and run into hole to bottom.Circulate bottoms up,wiper gas 178u.Pull MV VD out of the hole to surface.Lay down BHA and download MD data.PJSM and rig up to run 9 5/8"casing.PJSM and run into hole with 9 5/8"casing. EPOCH PERSONNEL ON BOARD 2 DAILY COST DML 2525;RW 555 REPORT BY J.Lundy Marathon Oil Company Paxton Field DAILY WELLSITE REPORT El EPOCH Paxton 3 REPORT FOR J.Nicholson;G Pribilski DATE Mar 06,2010 DEPTH 2537 PRESENT OPERATION Nipple up/clean pits&fill with water TIME 2400 YESTERDAY 2537 24 HOUR FOOTAGE 0 CASING INFORMATION 20"@ 98' 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 1 12.25 HCC-MXL-1 6044740 3-18;1-16 98 2537 2439 40.47 3-2-WT-A-E-IN-BT-TD TD 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 Mud report not Available 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 0 CUTTING GAS @ @ WIPER GAS 178 CHROMATOGRAPHY(ppm) SURVEY 0 METHANE(C-1) @ @ CONNECTION GAS HIGH 0 ETHANE(C-2) @ @ AVG 0 PROPANE(C-3) @ @ CURRENT 0 BUTANE(C-4) @ @ CURRENT BACKGROUND/AVG 4/4 PENTANE(C-5) @ @ HYDROCARBON SHOWS None INTERVAL LITHOLOGY/REMARKS GAS DESCRIPTION LITHOLOGY N/A PRESENT LITHOLOGY DAILY Continue to run into hole with 9 5/8"casing to 2520'.Work casing string and circulate through casing.PJSM and rig up to cement.Mix and ACTIVITY pump cement per plan.Rig down from cement run and clean all lines and equipment.Rig down from casing run.Nipple down diverter.Haul off SUMMARY mud.PJSM,clean pits and fill with water.Nipple down BOP stack.Cut and dress 9/5/8"and 20"casing cuts.PJSM;prep well head.Attempt to install.Fold up stabbing board.Change out bales and elevators.Build mud.. EPOCH PERSONNEL ON BOARD 2 DAILY COST DML 2525;RW 555 REPORT BY J.Lundy Marathon Oil Company HI EPOCH Paxton Field DAILY WELLSITE REPORT Paxton 3 REPORT FOR J.Nicholson;G Pribilski DATE Mar 06,2010 DEPTH 2537 PRESENT OPERATION Nipple up/clean pits&fill with water TIME 2400 YESTERDAY 2537 24 HOUR FOOTAGE 0 CASING INFORMATION 20"@ 98' 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 1 12.25 HCC-MXL-1 6044740 3-18;1-16 98 2537 2439 40.47 3-2-WT-A-E-IN-BT-TD TD 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 Mud report not Available 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 0 CUTTING GAS @ @ WIPER GAS 178 CHROMATOGRAPHY(ppm) SURVEY 0 METHANE(C-1) @ @ CONNECTION GAS HIGH 0 ETHANE(C-2) @ @ AVG 0 PROPANE(C-3) @ @ CURRENT 0 BUTANE(C-4) @ @ CURRENT BACKGROUND/AVG 4/4 PENTANE(C-5) @ @ HYDROCARBON SHOWS None INTERVAL LITHOLOGY/REMARKS GAS DESCRIPTI ON LITHOLOGY N/A PRESENT LITHOLOGY DAILY Continue to run into hole with 9 5/8"casing to 2520'.Work casing string and circulate through casing.PJSM and rig up to cement.Mix and ACTIVITY pump cement per plan.Rig down from cement run and clean all lines and equipment.Rig down from casing run.Nipple down diverter.Haul off SUMMARY mud.PJSM,clean pits and fill with water.Nipple down BOP stack.Cut and dress 9/5/8"and 20"casing cuts.PJSM;prep well head.Attempt to install.Fold up stabbing board.Change out bales and elevators.Build mud.. EPOCH PERSONNEL ON BOARD 2 DAILY COST DML 2525;RW 555 REPORT BY J.Lundy Marathon Oil Company P El EPOCH Paxton Field DAILY WELLSITE REPORT Paxton 3 REPORT FOR J.Nicholson;G Pribilski DATE Mar 07,2010 DEPTH 2537 PRESENT OPERATION Testing BOPs/Topdrive TIME 2400 YESTERDAY 2537 24 HOUR FOOTAGE 0 CASING INFORMATION 9 5/8"@ 2520' 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 2537/1433 MW 8.9 VIS 51 PV 12 YP 22 FL 6.8 Gels 8/12/12 CL- 21000 FC <1 SOL 3 SD - OIL 2/95 MBL 1 pH 8.8 Ca+ 160 CCI MWD SUMMARY INTERVAL TO TOOLS GAS SUMMARY(units) HIGH LOW AVERAGE DITCH GAS No Circulation © @ 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 None INTERVAL LITHOLOGY/REMARKS • GAS DESCRIPTION LITHOLOGY N/A PRESENT LIT HOLOGY DAILY ACTIVITY Dump mud and clean pits.Mix 500bbls flo-pro mud for displacement.Mix spacer in pit 5.Re-face casing cut off and re-install and test SUMMARY well-head.Nipple up and test BOPS.Repair top drive. , EPOCH PERSONNEL ON BOARD 2 DAILY COST DML 2525;RW 555 REPORT BY J.Lundy Marathon Oil Company Paxton Field DAILY WELLSITE REPORT El EPOCH Paxton 3 REPORT FOR J.Nicholson;G.Pribilski DATE Mar 08,2010 DEPTH 2537 PRESENT OPERATION Working on topdrive TIME 2400 YESTERDAY 2537 24 HOUR FOOTAGE 0 CASING INFORMATION 9 5/8"@ 2520' 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 2537/1443 MW 8.9 VIS 50 PV 12 YP 21 FL 6.8 Gels 8/12/12 CL- 20000 FC <1 SOL 3 SD - OIL 2/95 MBL 1 pH 8.8 Ca+ 160 CCI MWD SUMMARY INTERVAL TO TOOLS GAS SUMMARY(units) HIGH LOW AVERAGE DITCH GAS No Circulation @ @ 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 None INTERVAL LITHOLOGY/REMARKS GAS DESCRIPTION LITHOLOGY N/A PRESENT LITHOLOGY DAILY ACTIVITY Continue Nipple up and test,work on topdrive.Pick up BHA and run into hole to clean out.Canrig re-calibrate gas detectors.Pick up drill SUMMARY pipe.Top drive malfunction.Work on topdrive problem.Continue running into hole picking up pipe.Top drive cluches still malfunctioning.Pull out of the hole racking back drill pipe stands.Work on top drive. EPOCH PERSONNEL ON BOARD 2 DAILY COST DML 2525;RW 555 REPORT BY J.Lundy Marathon Oil Company El EPOCH Paxton Field DAILY WELLSITE REPORT Paxton 3 REPORT FOR J.Nicholson;G.Pribilski DATE Mar 08,2010 DEPTH 2537 PRESENT OPERATION Working on topdrive TIME 2400 YESTERDAY 2537 24 HOUR FOOTAGE 0 CASING INFORMATION 9 5/8"@ 2520' 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 2537/1443 MW 8.9 VIS 50 PV 12 YP 21 FL 6.8 Gels 8/12/12 CL- 20000 FC <1 SOL 3 SD - OIL 2/95 MBL 1 pH 8.8 Ca+ 160 CCI MWD SUMMARY INTERVAL TO TOOLS GAS SUMMARY(units) HIGH LOW AVERAGE DITCH GAS No Circulation @ @ 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 None INTERVAL LITHOLOGY/REMARKS GAS DESCRIPTI ON LITHOLOGY N/A PRESENT LIT HOLOGY DAILY ACTIVITY Continue Nipple up and test,work on topdrive.Pick up BHA and run into hole to clean out.Canrig re-calibrate gas detectors.Pick up drill SUMMARY pipe.Top drive malfunction.Work on topdrive problem.Continue running into hole picking up pipe.Top drive cluches still malfunctioning.Pull out of the hole racking back drill pipe stands.Work on top drive. EPOCH PERSONNEL ON BOARD 2 DAILY COST DML 2525;RW 555 REPORT BY J.Lundy Marathon Oil Company El EPOCH Paxton Field DAILY WELLSITE REPORT Paxton 3 REPORT FOR J.Nicholson;G.Pribilski DATE Mar 09,2010 DEPTH 2557 PRESENT OPERATION Pick up/Make up BHA#3 TIME 2400 YESTERDAY 2537 24 HOUR FOOTAGE 20 CASING INFORMATION DEPTH INCLINATION AZIMUTH VERTICAL DEPTH SURVEY DATA BIT INFORMATION INTERVAL CONDITION REASON NO. SIZE TYPE S/N JETS IN OUT FOOTAGE HOURS T/B/C PULLED 2 8.5 HCC-MXL-1 6054215 OPEN 2537 2557 20 0.35 1-1-WT-A-E-I-NO-BHA BHA 3 8.5 HCC-HCM-607ZX 7116852 3-12,2-13,2-11 2557 DRILLING PARAMETERS HIGH LOW AVERAGE CURRENT AVG RATE OF PENETRATION 128.0 @ 2538 45.5 @ 2537 69.7 53.66006 FT/HR SURFACE TORQUE 6666 © 2541 4875 @ 2538 6129.3 5873.76172 AMPS WEIGHT ON BIT 19 @ 2537 10 @ 2553 12.4 10.81883 KLBS ROTARY RPM 68 @ 2539 54 @ 2554. 62.8 61.76063 RPM PUMP PRESSURE 1828 © 2537 362 @ 2538 527.5 378.47760 PSI DRILLING MUD REPORT DEPTH 2557/1445 MW 8.8 VIS 55 PV 13 YP 20 FL 6.8 Gels 8/12/13 CL- 20000 FC <1 SOL 3 SD - OIL 2/95 MBL 0.5 pH 8.8 Ca+ 160 CCI MWD SUMMARY INTERVAL TO TOOLS GAS SUMMARY(units) HIGH LOW AVERAGE DITCH GAS 16 © 2537 1 @ 2538. 3.1 TRIP GAS 0 CUTTING GAS @ @ WIPER GAS 0 CHROMATOGRAPHY(ppm) SURVEY 0 METHANE(C-1) 3224 @ 2537 212 @ 2538 597.1 CONNECTION GAS HIGH 0 ETHANE(C-2) @ @ AVG 0 PROPANE(C-3) @ @ CURRENT 0 BUTANE(C-4) © @ CURRENT BACKGROUND/AVG 2/2 PENTANE(C-5) © @ HYDROCARBON SHOWS INTERVAL LITHOLOGY/REMARKS GAS DESCRIPTION LITHOLOGY Coal/yuffaceous siltstone/claystone;cement PRESENT LITHOLOGY 80%ccement;10%each coal/carbonaceous material and tuffaceous siltstone. PJSM,Service and troubleshoot top drive.PJSM,pick uo 5"drill pipe.Drift,make up and run into hole with drill pipe then pull out and rack back. DAILY Run into hole with BHA#2 and tag top of plug at 2388 PJSM,drill out shoe track from 2388'to 2520'.PJSM,clean out from 2520'to 2537'and ACTIVITY drill new hole to 2557'.Pump spacer,sweep and displace to new flo-pro mud.PTSM and run FIT at 2557'/1444'tvd,15.2ppg/EMW.Blow down SUMMARY mud system,PJSM and pull out of the hole.Stand back BHA.Remove sub-floor sound track and blow down.PJSM and pick up/make up BHA #3/M WD. EPOCH PERSONNEL ON BOARD 4 DAILY COST DML 3400;RW 555 REPORT BY J.Lundy Marathon Oil Company Paxton Field DAILY WELLSITE REPORT LI EPOCH Paxton 3 REPORT FOR J.Nicholson;G.Pribilski DATE Mar 09,2010 DEPTH 2557 PRESENT OPERATION Pick up/Make up BHA#3 TIME 2400 YESTERDAY 2537 24 HOUR FOOTAGE 20 CASING INFORMATION DEPTH INCLINATION AZIMUTH VERTICAL DEPTH SURVEY DATA BIT INFORMATION INTERVAL CONDITION REASON NO. SIZE TYPE S/N JETS IN OUT FOOTAGE HOURS T/B/C PULLED ' 2 8.5 HCC-MXL-1 6054215 OPEN 2537 2557 20 0.35 1-1-WT-A-E-I-NO-BHA BHA 3 8.5 HCC-HCM-607ZX 7116852 3-12,2-13,2-11 2557 DRILLING PARAMETERS HIGH LOW AVERAGE CURRENT AVG RATE OF PENETRATION 128.0 @ 2538 45.5 @ 2537 69.7 53.66006 FT/HR SURFACE TORQUE 6666 @ 2541 4875 © 2538 6129.3 5873.76172 AMPS WEIGHT ON BIT 19 @ 2537 10 @ 2553 12.4 10.81883 KLBS ROTARY RPM 68 @ 2539 54 @ 2554. 62.8 61.76063 RPM PUMP PRESSURE 1828 @ 2537 362 @ 2538 527.5 378.47760 PSI DRILLING MUD REPORT DEPTH 2557/1445 MW 8.8 VIS 55 PV 13 YP 20 FL 6.8 Gels 8/12/13 CL- 20000 FC <1 SOL 3 SD - OIL 2/95 MBL 0.5 pH 8.8 Ca+ 160 CCI MWD SUMMARY INTERVAL TO TOOLS GAS SUMMARY(units) HIGH LOW AVERAGE DITCH GAS 16 @ 2537 1 @ 2538. 3.1 TRIP GAS 0 CUTTING GAS @ @ WIPER GAS 0 CHROMATOGRAPHY(ppm) SURVEY 0 METHANE(C-1) 3224 © 2537 212 @ 2538 597.1 CONNECTION GAS HIGH 0 ETHANE(C-2) @ @ AVG 0 PROPANE(C-3) @ @ CURRENT 0 BUTANE(C-4) @ @ CURRENT BACKGROUND/AVG 2/2 PENTANE(C-5) @ @ HYDROCARBON SHOWS INTERVAL LITHOLOGY/REMARKS GAS DESCRIPTI ON LITHOLOGY Coal/yuffaceous siltstone/claystone;cement PRESENT LITHOLOGY 80%ccement;10%each coal/carbonaceous material and tuffaceous siltstone. PJSM,Service and troubleshoot top drive.PJSM,pick uo 5"drill pipe.Drift,make up and run into hole with drill pipe then pull out and rack back. DAILY Run into hole with BHA#2 and tag top of plug at 2388 PJSM,drill out shoe track from 2388'to 2520'.PJSM,clean out from 2520'to 2537'and ACTIVITY drill new hole to 2557'.Pump spacer,sweep and displace to new flo-pro mud.PTSM and run FIT at 2557'/1444'tvd,15.2ppg/EMW.Blow down SUMMARY mud system,PJSM and pull out of the hole.Stand back BHA.Remove sub-floor sound track and blow down.PJSM and pick up/make up BHA #3/M WD. EPOCH PERSONNEL ON BOARD 4 DAILY COST DML 3400;RW 555 REPORT BY J.Lundy Marathon Oil Company El EPOCH Paxton Field DAILY WELLSITE REPORT Paxton 3 REPORT FOR J.Nicholson;G Pribilski DATE Mar 10,2010 DEPTH 2723 PRESENT OPERATION UD BHA/MWD;Troubleshoot TIME 2400 YESTERDAY 2557 24 HOUR FOOTAGE 166 CASING INFORMATION 9 5/8"@ 2520' DEPTH INCLINATION AZIMUTH VERTICAL DEPTH SURVEY DATA 2607 80.4 354.12 1454.13 BIT INFORMATION INTERVAL CONDITION REASON NO. SIZE TYPE S/N JETS IN OUT FOOTAGE HOURS T/B/C PULLED 3 8.5 HCC-HCM-607ZX 7116852 3-12,2-13,2-11 2557 2723 166 1.39 MWD/BHA DRILLING PARAMETERS HIGH LOW AVERAGE CURRENT AVG RATE OF PENETRATION 126.5 @ 2601 37.2 @ 2558 107.8 107.22583 FT/HR SURFACE TORQUE 8942 @ 2638 3803 © 2701 6145.6 5873.76172 AMPS WEIGHT ON BIT 17 @ 2638 2 @ 2665 6.3 5.61628 KLBS ROTARY RPM 131 @ 2663 61 @ 2557 99.8 124.34705 RPM PUMP PRESSURE 1411 @ 2638 378 @ 2557 1279.2 1227.07800 PSI DRILLING MUD REPORT DEPTH 2724/1473 MW 8.9 VIS 56 PV 12 YP 21 FL 6.5 Gels 8/11/12 CL- 23000 FC <1 SOL 3.5 SD tr OIL 2/95 MBL 1 pH 8.8 Ca+ 160 CCI MWD SUMMARY INTERVAL TO TOOLS GAS SUMMARY(units) HIGH LOW AVERAGE DITCH GAS 50 @ 2603 1 @ 2558 12.8 TRIP GAS 4 CUTTING GAS @ @ WIPER GAS 0 CHROMATOGRAPHY(ppm) SURVEY 0 METHANE(C-1) 10368 @ 2603 375 @ 2558 2542.1 CONNECTION GAS HIGH 0 ETHANE(C-2) @ @ AVG 0 PROPANE(C-3) @ @ CURRENT 0 BUTANE(C-4) @ @ CURRENT BACKGROUND/AVG 3/3 PENTANE(C-5) @ © HYDROCARBON SHOWS None INTERVAL LITHOLOGY/REMARKS GAS DESCRIPTION LITHOLOGY Beluga;interbedded tuffaceous siltstone,claystone and sand with occasional thin coals and carbonaceous material. PRESENT LITHOLOGY 40%Tuffaceous claystone;30%Tuffaceous siltstone;10%Carbonaceous material;20%sand. DAILY Troubleshoot MWD/Directional tools.Test communication in directional tools-fail.Re-Configure and re-test tools-fail.Blow down lines and re- ACTIVITY configure/re-test tools OK.Run into hole to 2471'and circulate bottoms up.4 units gas at bottoms up.Wash down to 2557'and drill from 2557' SUMMARY to 2723'.Poor communication with directional tools.Circulate bottoms up and pull out of the hole to BHA.Troubleshoot directional tools.Lay down sources.Continue troubleshoot BHA/directional tools. - EPOCH PERSONNEL ON BOARD 4 DAILY COST DML 3400;RW 555 REPORT BY J.Lundy Marathon Oil Company n EPOCH Paxton Field DAILY WELLSITE REPORT Paxton 3 REPORT FOR J.Nicholson DATE Mar 11,2010 DEPTH 3049 PRESENT OPERATION Survey at connection 3049' TIME 2400 YESTERDAY 2723 24 HOUR FOOTAGE 326 CASING INFORMATION 9 5/8"©2520' DEPTH INCLINATION AZIMUTH VERTICAL DEPTH SURVEY DATA 2950 8028 354.99 1514.48 BIT INFORMATION INTERVAL CONDITION REASON NO. SIZE TYPE S/N JETS IN OUT FOOTAGE HOURS T/B/C PULLED 3rr1 8.5 HCC-HTC-607ZX 7116852 3-12,2-13,2-11 2723 Still in 326 4.33 DRILLING PARAMETERS HIGH LOW AVERAGE CURRENT AVG RATE OF PENETRATION 114.5 © 2725 12.6 @ 2724 77.7 75.21782 FT/HR SURFACE TORQUE 8061 © 3029 4361 @ 2727 5786.5 6064.61963 AMPS WEIGHT ON BIT 23 © 2968 3 @ 2737 11.4 11.41373 KLBS ROTARY RPM 138 @ 2924 61 @ 2801 106.7 124.34705 RPM PUMP PRESSURE 1394 @ 2940 1128 @ 2725 1306.8 1358.19226 PSI DRILLING MUD REPORT DEPTH 3049/1544 MW 9.0 VIS 57 PV 13 YP 20 FL 5.8 Gels 8/11/12 CL- 23000 FC <1 SOL 4 SD tr OIL 3/93 MBL 1 pH 9.2 Ca+ 140 CCI MWD SUMMARY INTERVAL TO TOOLS GAS SUMMARY(units) HIGH LOW AVERAGE DITCH GAS 70 @ 2856 1 @ 2724. 41.0 TRIP GAS 6u @ 2723' CUTTING GAS @ @ WIPER GAS 0 CHROMATOGRAPHY(ppm) SURVEY 0 METHANE(C-1) 14033 @ 2856 330 @ 2724 8133.7 CONNECTION GAS HIGH 0 ETHANE(C-2) @ @ AVG 0 PROPANE(C-3) @ @ CURRENT 0 BUTANE(C-4) @ @ CURRENT BACKGROUND/AVG 12/9 PENTANE(C-5) @ @ HYDROCARBON SHOWS None INTERVAL LITHOLOGY/REMARKS GAS DESCRIPTI ON LITHOLOGY Beluga;Interbedded Tuffaceous siltstone;tuffaceous claystone;sand and coals with occasional carbonaceous shale and thin ash/tuffs. PRESENT LITHOLOGY 30%Sand;30%Carbonaceous shale;10%coal;20%Tuffaceous claystone;10%Tuffaceous siltstone DAILY ACTIVITY Continue to troubleshoot and test directional/MWD tools untill repaired.PJSM and load radioactive sources.PJSM and run into hole SUMMARY to2541'.Fill pipe and circulate.Run into hole from 2541'to 2723'.Drill from 2723'to 3049'. EPOCH PERSONNEL ON BOARD 4 DAILY COST DML 3400;RW 555 REPORT BY J.Lundy Marathon Oil Company El EPOCH Paxton Field DAILY WELLSITE REPORT Paxton 3 REPORT FOR J.Nicholson DATE Mar 11,2010 DEPTH 3049 PRESENT OPERATION Survey at connection 3049' TIME 2400 YESTERDAY 2723 24 HOUR FOOTAGE 326 CASING INFORMATION 9 5/8"©2520' DEPTH INCLINATION AZIMUTH VERTICAL DEPTH SURVEY DATA 2950 8028 354.99 1514.48 BIT INFORMATION INTERVAL CONDITION REASON NO. SIZE TYPE S/N JETS IN OUT FOOTAGE HOURS T/B/C PULLED 3rr1 8.5 HCC-HTC-607ZX 7116852 3-12,2-13,2-11 2723 Still in 326 4.33 DRILLING PARAMETERS HIGH LOW AVERAGE CURRENT AVG RATE OF PENETRATION 114.5 @ 2725 12.6 @ 2724 77.7 75.21782 FT/HR SURFACE TORQUE 8061 @ 3029 4361 @ 2727 5786.5 6064.61963 AMPS WEIGHT ON BIT 23 @ 2968 3 @ 2737 11.4 11.41373 KLBS ROTARY RPM 138 @ 2924 61 © 2801 106.7 124.34705 RPM PUMP PRESSURE 1394 @ 2940 1128 @ 2725 1306.8 1358.19226 PSI DRILLING MUD REPORT DEPTH 3049/1544 MW 9.0 VIS 57 PV 13 YP 20 FL 5.8 Gels 8/11/12 CL- 23000 FC <1 SOL 4 SD tr OIL 3/93 MBL 1 pH 9.2 Ca+ 140 CCI MWD SUMMARY INTERVAL TO TOOLS GAS SUMMARY(units) HIGH LOW AVERAGE DITCH GAS 70 © 2856 1 @ 2724. 41.0 TRIP GAS 6u @ 2723' CUTTING GAS @ @ WIPER GAS 0 CHROMATOGRAPHY(ppm) SURVEY 0 METHANE(C-1) 14033 @ 2856 330 @ 2724 8133.7 CONNECTION GAS HIGH 0 ETHANE(C-2) @ @ AVG 0 PROPANE(C-3) @ @ CURRENT 0 BUTANE(C-4) @ @ CURRENT BACKGROUND/AVG 12/9 PENTANE(C-5) @ © HYDROCARBON SHOWS None INTERVAL LITHOLOGY/REMARKS GAS DESCRIPTION LITHOLOGY Beluga;Interbedded Tuffaceous siltstone;tuffaceous claystone;sand and coals with occasional carbonaceous shale and thin ash/tuffs. PRESENT LITHOLOGY 30%Sand;30%Carbonaceous shale;10%coal;20%Tuffaceous claystone;10%Tuffaceous siltstone DAILY ACTIVITY Continue to troubleshoot and test directional/MWD tools until)repaired.PJSM and load radioactive sources.PJSM and run into hole SUMMARY to2541'.Fill pipe and circulate.Run into hole from 2541'to 2723'.Drill from 2723'to 3049'. EPOCH PERSONNEL ON BOARD 4 DAILY COST DML 3400;RW 555 REPORT BY J.Lundy Marathon Oil Company Paxton Field DAILY WELLSITE REPORT EPOCH Paxton 3 REPORT FOR J.Nicholson DATE Mar 12,2010 DEPTH 4254. PRESENT OPERATION Wiper trip @ 4254' TIME 2400 YESTERDAY 3049 24 HOUR FOOTAGE 1205 CASING INFORMATION 9 5/8"@ 2520' DEPTH INCLINATION AZIMUTH VERTICAL DEPTH SURVEY DATA 4219 62.44 354.23 1825.85' BIT INFORMATION INTERVAL CONDITION REASON NO. SIZE TYPE S/N JETS IN OUT FOOTAGE HOURS T/B/C PULLED 3rr1 8.5 HCC-HTC-607ZX 7116852 3-12;2-13,2-11 2723 Still in 1531 20.12 DRILLING PARAMETERS HIGH LOW AVERAGE CURRENT AVG RATE OF PENETRATION 115.4 @ 3116 21.2 @ 3177 77.7 77.63138 FT/HR SURFACE TORQUE 8839 @ 3056 4772 @ 4049 5977.7 5785.67383 AMPS WEIGHT ON BIT 30 © 3055 0 @ 3638 9.8 3.28244 KLBS ROTARY RPM 145 @ 4121 47 @ 3303 122.9 131.30110 RPM PUMP PRESSURE 1507 @ 3664 1268 @ 3190 1385.5 1401.89697 PSI DRILLING MUD REPORT DEPTH 4254/1830 MW 9.1 VIS 57 PV 16 YP 24 FL 5.5 Gels 9/13/14 CL- 23000 FC <1 SOL 4 SD tr OIL 4/93 MBL 1.5 pH 9.4 Ca+ 120 CCI MWD SUMMARY INTERVAL TO TOOLS GAS SUMMARY(units) HIGH LOW AVERAGE DITCH GAS 65 @ 3223 1 @ 3448 17.1 TRIP GAS 0 CUTTING GAS @ @ WIPER GAS 0 CHROMATOGRAPHY(ppm) SURVEY 0 METHANE(C-1) 13542 @ 3223 404 @ 3811 3458.1 CONNECTION GAS HIGH 0 ETHANE(C-2) @ @ AVG 0 PROPANE(C-3) @ @ CURRENT 0 BUTANE(C-4) @ @ CURRENT BACKGROUND/AVG 2/5 PENTANE(C-5) @ @ HYDROCARBON SHOWS None INTERVAL LITHOLOGY/REMARKS GAS DESCRIPTION LITHOLOGY Beluga;Interbedded Tuffaceous siltstone;tuffaceous claystone;sand and coals with occasional carbonaceous shale and thin ash/tuffs. PRESENT LITHOLOGY 10%Sand/sandstone;30%Coal;30%Tuffaceous siltstone/claystone;30%Carbonaceous shale DAILY ACTIVITY PTSM and drill from 3049'to 3704'.PTSM and drill from 3704'to 4254'.Circulate hole clean.Mix and pump dry job.PJSM and wipe SUMMARY hole from 4254'to 3488'at midnight. EPOCH PERSONNEL ON BOARD 4 DAILY COST DML 3400;RW 555 REPORT BY J.Lundy Marathon Oil Company Paxton Field DAILY WELLSITE REPORT EPOCH Paxton 3 REPORT FOR J.Nicholson DATE Mar 12,2010 DEPTH 4254. PRESENT OPERATION Wiper trip @ 4254' TIME 2400 YESTERDAY 3049 24 HOUR FOOTAGE 1205 CASING INFORMATION 9 5/8"©2520' DEPTH INCLINATION AZIMUTH VERTICAL DEPTH SURVEY DATA 4219 62.44 354.23 1825.85' BIT INFORMATION INTERVAL CONDITION REASON NO. SIZE TYPE S/N JETS IN OUT FOOTAGE HOURS T/B/C PULLED 3rr1 8.5 HCC-HTC-607ZX 7116852 3-12;2-13,2-11 2723 Still in 1531 20.12 DRILLING PARAMETERS HIGH LOW AVERAGE CURRENT AVG RATE OF PENETRATION 115.4 © 3116 21.2 @ 3177 77.7 77.63138 FT/HR SURFACE TORQUE 8839 © 3056 4772 @ 4049 5977.7 5785.67383 AMPS WEIGHT ON BIT 30 © 3055 0 @ 3638 9.8 3.28244 KLBS ROTARY RPM 145 @ 4121 47 @ 3303 122.9 131.30110 RPM PUMP PRESSURE 1507 @ 3664 1268 © 3190 1385.5 1401.89697 PSI DRILLING MUD REPORT DEPTH 4254/1830 MW 9.1 VIS 57 PV 16 YP 24 FL 5.5 Gels 9/13/14 CL- 23000 FC <1 SOL 4 SD tr OIL 4/93 MBL 1.5 pH 9.4 Ca+ 120 CCI MWD SUMMARY INTERVAL TO TOOLS GAS SUMMARY(units) HIGH LOW AVERAGE DITCH GAS 65 @ 3223 1 © 3448 17.1 TRIP GAS 0 CUTTING GAS @ @ WIPER GAS 0 CHROMATOGRAPHY(ppm) SURVEY 0 METHANE(C-1) 13542 @ 3223 404 @ 3811 3458.1 CONNECTION GAS HIGH 0 ETHANE(C-2) @ @ AVG 0 PROPANE(C-3) @ @ CURRENT 0 BUTANE(C-4) @ @ CURRENT BACKGROUND/AVG 2/5 PENTANE(C-5) @ @ HYDROCARBON SHOWS None INTERVAL LITHOLOGY/REMARKS GAS DESCRIPTION LITHOLOGY Beluga;Interbedded Tuffaceous siltstone;tuffaceous claystone;sand and coals with occasional carbonaceous shale and thin ash/tuffs. PRESENT LITHOLOGY 10%Sand/sandstone;30%Coal;30%Tuffaceous siltstone/claystone;30%Carbonaceous shale DAILY ACTIVITY PTSM and drill from 3049'to 3704'.PTSM and drill from 3704'to 4254'.Circulate hole clean.Mix and pump dry job.PJSM and wipe SUMMARY hole from 4254'to 3488'at midnight. EPOCH PERSONNEL ON BOARD 4 DAILY COST DML 3400;RW 555 REPORT BY J.Lundy Marathon Oil Company El EPOCH Paxton Field DAILY WELLSITE REPORT Paxton 3 REPORT FOR J.Nicholson; DATE Mar 13,2010 DEPTH 5319 PRESENT OPERATION DRILLING TIME 2400 YESTERDAY 4254 24 HOUR FOOTAGE 1065 CASING INFORMATION 9 5/8"@ 2520' DEPTH INCLINATION AZIMUTH VERTICAL DEPTH SURVEY DATA 5298 37.99 354.06 2461.12 BIT INFORMATION INTERVAL CONDITION REASON NO. SIZE TYPE S/N JETS IN OUT FOOTAGE HOURS T/B/C PULLED 3rr1 8.5 HCC-HTC-607ZX 7116852 3-13,2-12,2-11 2723 Still in 2596 34.4 DRILLING PARAMETERS HIGH LOW AVERAGE CURRENT AVG RATE OF PENETRATION 139.9 @ 4256 18.1 @ 4317 76.5 77.63138 FT/HR SURFACE TORQUE 9793 @ 5145 4302 @ 4445 6923.6 8310.87012 AMPS WEIGHT ON BIT 51 @ 5145 1 @ 4559 11.4 13.90585 KLBS ROTARY RPM 152 © 4566 6 @ 5145 128.8 131.30110 RPM PUMP PRESSURE 1818 © 4425 1196 @ 5030 1604.1 1276.24585 PSI DRILLING MUD REPORT DEPTH 5145/2338 MW 9.4 VIS 61 PV 17 YP 26 FL 5.7 Gels 10/14/15 CL- 21000 FC <1 SOL 6 SD tr OIL 3/91 MBL 4 pH 9.7 Ca+ 100 CCI MWD SUMMARY INTERVAL TO TOOLS GAS SUMMARY(units) HIGH LOW AVERAGE DITCH GAS 106 © 4960 2 @ 4574 23.4 TRIP GAS 0 CUTTING GAS @ @ WIPER GAS 28u©4254 CHROMATOGRAPHY(ppm) SURVEY 0 METHANE(C-1) 21331 @ 4960 425 @ 4574 4637.6 CONNECTION GAS HIGH 0 ETHANE(C-2) @ @ AVG 0 PROPANE(C-3) @ @ CURRENT 0 BUTANE(C-4) @ @ CURRENT BACKGROUND/AVG 9/6 PENTANE(C-5) @ @ HYDROCARBON Gas @4930-4970' SHOWS INTERVAL LITHOLOGY/REMARKS GAS DESCRIPTION 4930-4970 sand 103u MEDIUM GRAY OVER-ALL WITH INDIVIDUAL GRAINS DOMINANTLY CLEAR TO TRANSLUCENT QUARTZ AND VOLCANIC GLASS,LIGHT TO DARK GRAY,BLACK AND LIGHT TO MEDIUM GREENISH GRAY;VERY FINE UPPER TO RARE COARSE UPPER,DOMINANTLY FINE UPPER TO MEDIUM LOWER;ANGULAR TO SUBANGULAR;MODERATELY WELL SORTED;UNC-ONSOLIDATED;TRACE LIGHT GRAY SANDSTONE;VERY HARD;VERY FINE GRAIN;WELL SORTED;VERY CALCAREOUS CEMENT. LITHOLOGY Beluga;Interbedded Tuffaceous siltstone;tuffaceous claystone;sand and coals with occasional carbonaceous shale and thin ash/tuffs. PRESENT LITHOLOGY 50%Sand/sandstone;20%Tuffaceous siltstone;20%Tuffaceous claystone;10%Ash/tuff DAILY ACTIVITY PJSM,continue wiper trip,pull out of the hole from 3449'to shoe at 2520'.PJSM and service rig.PJSM and cut and slip drilling line. SUMMARY PJSM and run into the hole from 2520'to bottom at 4254'.PJSM and drill from 4254'to 5319'. EPOCH PERSONNEL ON BOARD 4 DAILY COST DML 3400;RW 555 REPORT BY J.Lundy Marathon Oil Company El EPOCH Paxton Field DAILY WELLSITE REPORT Paxton 3 REPORT FOR J.Nicholson; DATE Mar 13,2010 DEPTH 5319 PRESENT OPERATION DRILLING TIME 2400 YESTERDAY 4254 24 HOUR FOOTAGE 1065 CASING INFORMATION 9 5/8"@ 2520' DEPTH INCLINATION AZIMUTH VERTICAL DEPTH SURVEY DATA 5298 37.99 354.06 2461.12 BIT INFORMATION INTERVAL CONDITION REASON NO. SIZE TYPE S/N JETS IN OUT FOOTAGE HOURS T/B/C PULLED 3rr1 8.5 HCC-HTC-607ZX 7116852 3-13,2-12,2-11 2723 Still in 2596 34.4 DRILLING PARAMETERS HIGH LOW AVERAGE CURRENT AVG RATE OF PENETRATION 139.9 @ 4256 18.1 @ 4317 76.5 77.63138 FT/HR SURFACE TORQUE 9793 @ 5145 4302 @ 4445 6923.6 8310.87012 AMPS WEIGHT ON BIT 51 @ 5145 1 @ 4559 11.4 13.90585 KLBS ROTARY RPM 152 @ 4566 6 @ 5145 128.8 131.30110 RPM PUMP PRESSURE 1818 @ 4425 1196 @ 5030 1604.1 1276.24585 PSI DRILLING MUD REPORT DEPTH 5145/2338 MW 9.4 VIS 61 PV 17 YP 26 FL 5.7 Gels 10/14/15 CL- 21000 FC <1 SOL 6 SD tr OIL 3/91 MBL 4 pH 9.7 Ca+ 100 CCI MWD SUMMARY INTERVAL TO TOOLS GAS SUMMARY(units) HIGH LOW AVERAGE DITCH GAS 106 @ 4960 2 @ 4574 23.4 TRIP GAS 0 CUTTING GAS @ @ WIPER GAS 28u©4254 CHROMATOGRAPHY(ppm) SURVEY 0 METHANE(C-1) 21331 © 4960 425 @ 4574 4637.6 CONNECTION GAS HIGH 0 ETHANE(C-2) @ @ AVG 0 PROPANE(C-3) @ @ CURRENT 0 BUTANE(C-4) @ @ CURRENT BACKGROUND/AVG 9/6 PENTANE(C-5) @ @ HYDROCARBON Gas @4930-4970' SHOWS INTERVAL LITHOLOGY/REMARKS GAS DESCRIPTION 4930-4970 sand 103u MEDIUM GRAY OVER-ALL WITH INDIVIDUAL GRAINS DOMINANTLY CLEAR TO TRANSLUCENT QUARTZ AND VOLCANIC GLASS,LIGHT TO DARK GRAY,BLACK AND LIGHT TO MEDIUM GREENISH GRAY;VERY FINE UPPER TO RARE COARSE UPPER,DOMINANTLY FINE UPPER TO MEDIUM LOWER;ANGULAR TO SUBANGULAR;MODERATELY WELL SORTED;UNC-ONSOLIDATED;TRACE LIGHT GRAY SANDSTONE;VERY HARD;VERY FINE GRAIN;WELL SORTED;VERY CALCAREOUS CEMENT. LITHOLOGY Beluga;Interbedded Tuffaceous siltstone;tuffaceous claystone;sand and coals with occasional carbonaceous shale and thin ash/tuffs. PRESENT LITHOLOGY 50%Sand/sandstone;20%Tuffaceous siltstone;20%Tuffaceous claystone;10%Ash/tuff DAILY ACTIVITY PJSM,continue wiper trip,pull out of the hole from 3449'to shoe at 2520'.PJSM and service rig.PJSM and cut and slip drilling line. SUMMARY PJSM and run into the hole from 2520'to bottom at 4254'.PJSM and drill from 4254'to 5319'. EPOCH PERSONNEL ON BOARD 4 DAILY COST DML 3400;RW 555 REPORT BY J.Lundy Marathon Oil Company Paxton Field DAILY WELLSITE REPORT EPOCH Paxton 3 REPORT FOR J.Nicholson DATE Mar 14,2010 DEPTH 5673 PRESENT OPERATION POOH for bit/BHA TIME 2400 YESTERDAY 5319 24 HOUR FOOTAGE 354 CASING INFORMATION 9 5/8"@ 2520' DEPTH INCLINATION AZIMUTH VERTICAL DEPTH SURVEY DATA 5615 35.65 354.08 2717.53 BIT INFORMATION INTERVAL CONDITION REASON NO. SIZE TYPE S/N JETS IN OUT FOOTAGE HOURS T/B/C PULLED 3rr1 8.5 HCC-HTC-607ZX 7116852 3-13,2-12,2-11 2723 STILL IN 2950 44.55 DRILLING PARAMETERS HIGH LOW AVERAGE CURRENT AVG RATE OF PENETRATION 98.2 @ 5494 6.3 @ 5661 50.6 13.96193 FT/HR SURFACE TORQUE 9793 @ 5552 6196 @ 5623 8180.5 6578.46826 AMPS WEIGHT ON BIT 33 @ 5588 8 © 5446 17.8 24.99287 KLBS ROTARY RPM 152 © 5600 75 @ 5587 129.2 124.34705 RPM PUMP PRESSURE 2296 @ 5613 1252 @ 5384 1510.0 2042.89990 PSI DRILLING MUD REPORT DEPTH 5673/2765 MW 9.3 VIS 63 PV 16 YP 25 FL 5.6 Gels 9/12/12 CL- 20000 FC <1 SOL 5 SD tr OIL 3/92 MBL 5 pH 9.5 Ca+ 80 CCI MWD SUMMARY INTERVAL TO TOOLS GAS SUMMARY(units) HIGH LOW AVERAGE DITCH GAS 68 © 5474 3 @ 5622.00000 17.6 TRIP GAS 0 CUTTING GAS @ @ WIPER GAS 129U @5588' CHROMATOGRAPHY(ppm) SURVEY 0 METHANE(C-1) 13095 @ 5476 593 @ 5622 3371.2 CONNECTION GAS HIGH 0 ETHANE(C-2) @ @ AVG 0 PROPANE(C-3) © @ CURRENT 0 BUTANE(C-4) @ @ CURRENT BACKGROUND/AVG 2/2 PENTANE(C-5) @ @ HYDROCARBON SHOWS None INTERVAL LITHOLOGY/REMARKS GAS DESCRIPTI ON LITHOLOGY Beluga;Interbedded Tuffaceous siltstone;tuffaceous claystone;sand and coals with occasional carbonaceous shale and thin ash/tuffs PRESENT LITHOLOGY 10%Sand/sandstone;30%Tuffaceous siltstone;40%Tuffaceous claystone;20%Carbonaceous shale. DAILY PTSM and drill from 5319'to 5588'.PJSM and repair mud pump#1.Circulate bottoms up.Circulate hole clean.Mix and pump dry job.PJSM ACTIVITY and pull out of the hole/wipe hole from 5355'to 4254'.Continue repair on mud pump#1.PJSM and run into hole from 4254'to bottom.Mix and SUMMARY pump sweep.Downlink MWD/DD.PJSM and drill from 5355'to 5673'.Circulate bottoms up.Circulate hole clean.PJSM and pull out of the hole for bit/BHA from 5673'to 2428'at midnight EPOCH PERSONNEL ON BOARD 4 DAILY COST DML 3400;RW 555 REPORT BY J.Lundy Marathon Oil Company El EPOCH Paxton Field DAILY WELLSITE REPORT Paxton 3 REPORT FOR J.Nicholson DATE Mar 14,2010 DEPTH 5673 PRESENT OPERATION POOH for bit/BHA TIME 2400 YESTERDAY 5319 24 HOUR FOOTAGE 354 CASING INFORMATION 9 5/8"@ 2520' DEPTH INCLINATION AZIMUTH VERTICAL DEPTH SURVEY DATA 5615 35.65 354.08 2717.53 BIT INFORMATION INTERVAL CONDITION REASON NO. SIZE TYPE S/N JETS IN OUT FOOTAGE HOURS T/B/C PULLED 3rr1 8.5 HCC-HTC-607ZX 7116852 3-13,2-12,2-11 2723 STILL IN 2950 44.55 DRILLING PARAMETERS HIGH LOW AVERAGE CURRENT AVG RATE OF PENETRATION 98.2 @ 5494 6.3 @ 5661 50.6 13.96193 FT/HR SURFACE TORQUE 9793 @ 5552 6196 @ 5623 8180.5 6578.46826 AMPS WEIGHT ON BIT 33 @ 5588 8 @ 5446 17.8 24.99287 KLBS ROTARY RPM 152 @ 5600 75 @ 5587 129.2 124.34705 RPM PUMP PRESSURE 2296 @ 5613 1252 @ 5384 1510.0 2042.89990 PSI DRILLING MUD REPORT DEPTH 5673/2765 MW 9.3 VIS 63 PV 16 YP 25 FL 5.6 Gels 9/12/12 CL- 20000 FC <1 SOL 5 SD tr OIL 3/92 MBL 5 pH 9.5 Ca+ 80 CCI MWD SUMMARY INTERVAL TO TOOLS GAS SUMMARY(units) HIGH LOW AVERAGE DITCH GAS 68 @ 5474 3 @ 5622.00000 17.6 TRIP GAS 0 CUTTING GAS @ @ WIPER GAS 129U©5588' CHROMATOGRAPHY(ppm) SURVEY 0 METHANE(C-1) 13095 @ 5476 593 @ 5622 3371.2 CONNECTION GAS HIGH 0 ETHANE(C-2) @ @ AVG 0 PROPANE(C-3) @ @ CURRENT 0 BUTANE(C-4) @ @ CURRENT BACKGROUND/AVG 2/2 PENTANE(C-5) @ @ HYDROCARBON SHOWS None INTERVAL LITHOLOGY/REMARKS GAS DESCRIPTION LITHOLOGY Beluga;Interbedded Tuffaceous siltstone;tuffaceous claystone;sand and coals with occasional carbonaceous shale and thin ash/tuffs PRESENT LITHOLOGY 10%Sand/sandstone;30%Tuffaceous sittstone;40%Tuffaceous claystone;20%Carbonaceous shale. DAILY PTSM and drill from 5319'to 5588'.PJSM and repair mud pump#1.Circulate bottoms up.Circulate hole clean.Mix and pump dry job.PJSM ACTIVITY and pull out of the hole/wipe hole from 5355'to 4254'.Continue repair on mud pump#1.PJSM and run into hole from 4254'to bottom.Mix and SUMMARY pump sweep.Downlink MWD/DD.PJSM and drill from 5355'to 5673'.Circulate bottoms up.Circulate hole clean.PJSM and pull out of the hole for bit/BHA from 5673'to 2428'at midnight EPOCH PERSONNEL ON BOARD 4 DAILY COST DML 3400;RW 555 REPORT BY J.Lundy Marathon Oil Company El EPOCH Paxton Field DAILY WELLSITE REPORT Paxton 3 REPORT FOR J.Nicholson DATE Mar 15,2010 DEPTH 5864 PRESENT OPERATION Drilling TIME 2400 YESTERDAY 5673 24 HOUR FOOTAGE 191 CASING INFORMATION 9 5/8"@ 2520' DEPTH INCLINATION AZIMUTH VERTICAL DEPTH SURVEY DATA 5806' 35.7 353.58 2872.65' BIT INFORMATION INTERVAL CONDITION REASON NO. SIZE TYPE S/N JETS IN OUT FOOTAGE HOURS T/B/C PULLED 3rr1 8.5 HCC-HTC-607ZX 7116852 3-13,2-12,2-11 2723 5673 2950 44.55 0-0-PN-N-X-I-NO-PR PR 4 8.5 HCC-DP-605 7118417 3-11,4-12 5673 STILL IN 191 3.1 DRILLING PARAMETERS HIGH LOW AVERAGE CURRENT AVG RATE OF PENETRATION 216.5 @ 5674 14.0 @ 5673 65.0 67.82471 FT/HR SURFACE TORQUE 10454 @ 5852 6578 @ 5673 9463.8 9426.65527 AMPS WEIGHT ON BIT 24 @ 5673 -1 @ 5674 8.8 13.95012 KLBS ROTARY RPM 166 @ 5674 110 © 5852 139.6 138.25514 RPM PUMP PRESSURE 2042 @ 5673 1665 @ 5709 1816.9 1962.77454 PSI DRILLING MUD REPORT DEPTH 5771/2842 MW 9.4 VIS 55 PV 11 YP 22 FL 5.6 Gels 9/12/12 CL- 21000 FC <1 SOL 6 SD tr OIL 3/91 MBL 6 pH 9.7 Ca+ 80 CCI MWD SUMMARY INTERVAL TO TOOLS GAS SUMMARY(units) HIGH LOW AVERAGE DITCH GAS 62 @ 5687 1 @ 5674 16.3 TRIP GAS 13u @ 5673 CUTTING GAS @ @ WIPER GAS 0 CHROMATOGRAPHY(ppm) SURVEY 0 METHANE(C-1) 12007 © 5687 316 © 5674 3291.3 CONNECTION GAS HIGH 0 ETHANE(C-2) @ @ AVG 0 PROPANE(C-3) @ @ CURRENT 0 BUTANE(C-4) © © CURRENT BACKGROUND/AVG 4/3 PENTANE(C-5) @ @ HYDROCARBON SHOWS NONE INTERVAL LITHOLOGY/REMARKS GAS DESCRIPTION LITHOLOGY Beluga;Interbedded Tuffaceous siltstone;tuffaceous claystone;sand and coals with occasional carbonaceous shale and thin ash/tuffs PRESENT LITHOLOGY 30%Sand/tuffaceous sand;50%Tuffaceopus siltstone/claystone;10%Carbonaceous shale;10%Ash/tuff DAILY PTSM and continue pulling out of the hole from 2428'to surface.Rack back-LID BHA.PJSM and L/D radioactive sources.Download MWD. ACTIVITY Service rig.Make up bit#4/BHA#5.PJSM and load radioactive sources.Surface function test MWD/DD tools;59 bbl mud pumped to trip tank, W SUMMARY overflow to cellar 19 bbls none spilled outside containment.PJSM and run into hole to bottom.Downlink MD/DD and drill from 5673'to 5850' at midnight. EPOCH PERSONNEL ON BOARD 4 DAILY COST DML 3400;RW 555 REPORT BY J.Lundy Maratha Oil Company Li EPOCH Paxton ton Field DAILY WELLSITE REPORT Paxton 3 REPORT FOR J.Nicholson DATE Mar 15,2010 DEPTH 5864 PRESENT OPERATION Drilling TIME 2400 YESTERDAY 5673 24 HOUR FOOTAGE 191 CASING INFORMATION 9 5/8"@ 2520' DEPTH INCLINATION AZIMUTH VERTICAL DEPTH SURVEY DATA 5806' 35.7 353.58 2872.65' BIT INFORMATION INTERVAL CONDITION REASON NO. SIZE TYPE S/N JETS IN OUT FOOTAGE HOURS T/B/C PULLED 3rr1 8.5 HCC-HTC-607ZX 7116852 3-13,2-12,2-11 2723 5673 2950 44.55 0-0-PN-N-X-I-NO-PR PR 4 8.5 HCC-DP-605 7118417 3-11,4-12 5673 STILL IN 191 3.1 DRILLING PARAMETERS HIGH LOW AVERAGE CURRENT AVG RATE OF PENETRATION 216.5 @ 5674 14.0 @ 5673 65.0 67.82471 FT/HR SURFACE TORQUE 10454 @ 5852 6578 @ 5673 9463.8 9426.65527 AMPS WEIGHT ON BIT 24 @ 5673 -1 @ 5674 8.8 13.95012 KLBS ROTARY RPM 166 @ 5674 110 @ 5852 139.6 138.25514 RPM PUMP PRESSURE 2042 @ 5673 1665 © 5709 1816.9 1962.77454 PSI DRILLING MUD REPORT DEPTH 5771/2842 MW 9.4 VIS 55 PV 11 YP 22 FL 5.6 Gels 9/12/12 CL- 21000 FC <1 SOL 6 SD tr OIL 3/91 MBL 6 pH 9.7 Ca+ 80 CCI MWD SUMMARY INTERVAL TO TOOLS GAS SUMMARY(units) HIGH LOW AVERAGE DITCH GAS 62 @ 5687 1 @ 5674 16.3 TRIP GAS 13u @ 5673 CUTTING GAS @ @ WIPER GAS 0 CHROMATOGRAPHY(ppm) SURVEY 0 METHANE(C-1) 12007 @ 5687 316 @ 5674 3291.3 CONNECTION GAS HIGH 0 ETHANE(C-2) @ @ AVG 0 PROPANE(C-3) @ @ CURRENT 0 BUTANE(C-4) @ @ CURRENT BACKGROUND/AVG 4/3 PENTANE(C-5) @ @ HYDROCARBON SHOWS NONE INTERVAL LITHOLOGY/REMARKS GAS DESCRIPTION LITHOLOGY Beluga;Interbedded Tuffaceous siltstone;tuffaceous claystone;sand and coals with occasional carbonaceous shale and thin ash/tuffs PRESENT LITHOLOGY 30%Sand/tuffaceous sand;50%Tuffaceopus siltstone/claystone;10%Carbonaceous shale;10%Ash/tuff DAILY PTSM and continue pulling out of the hole from 2428'to surface.Rack back-UD BHA.PJSM and UD radioactive sources.Download MWD. ACTIVITY Service rig.Make up bit#4/BHA#5.PJSM and load radioactive sources.Surface function test MWD/DD tools;59 bbl mud pumped to trip tank, SUMMARY overflow to cellar 19 bbls none spilled outside containment.PJSM and run into hole to bottom.Downlink MWD/DD and drill from 5673'to 5850' at midnight. EPOCH PERSONNEL ON BOARD 4 DAILY COST DML 3400;RW 555 REPORT BY J.Lundy Maratha Oil Company HI EPOCH Paxton ton Field DAILY WELLSITE REPORT Paxton 3 REPORT FOR R.Lawson DATE Mar 16,2010 DEPTH 6801 PRESENT OPERATION Drilling TIME 2400 YESTERDAY 5864 24 HOUR FOOTAGE 937 CASING INFORMATION 9 5/8"@ 2520' DEPTH INCLINATION AZIMUTH VERTICAL DEPTH SURVEY DATA 6757 35.69 353.99 3645.09 BIT INFORMATION INTERVAL CONDITION REASON NO. SIZE TYPE S/N JETS IN OUT FOOTAGE HOURS T/B/C PULLED 4 8.5 HCC-DP-605 7118417 3-11,4-12 5673 STILL IN 1128 22 DRILLING PARAMETERS HIGH LOW AVERAGE CURRENT AVG RATE OF PENETRATION 100.1 @ 6190 7.3 @ 6430 59.5 41.63 FT/HR SURFACE TORQUE 13654 @ 6513 7929 @ 6102 10606.1 11687.57 AMPS WEIGHT ON BIT 28 @ 6426 -9 @ 6158 10.4 7.79 KLBS ROTARY RPM 152 @ 6221 68 © 6738 116.0 82.62 RPM PUMP PRESSURE 2153 @ 6426 928 © 6254 1879.9 1764.28 PSI DRILLING MUD REPORT DEPTH 6720/3623 MW 9.4 VIS 51 PV 16 YP 18 FL 5.4 Gels 7/11/12 CL- 21000 FC <1 SOL 6 SD tr OIL 3/91 MBL 5 pH 9.7 Ca+ 80 CCI MWD SUMMARY INTERVAL TO TOOLS GAS SUMMARY(units) HIGH LOW AVERAGE DITCH GAS 111 @ 6543. 3 @ 6222 20.4 TRIP GAS 0 CUTTING GAS @ @ WIPER GAS 0 CHROMATOGRAPHY(ppm) SURVEY 0 METHANE(C-1) 22259 @ 6543 701 @ 6222 4005.7 CONNECTION GAS HIGH 0 ETHANE(C-2) @ @ AVG 0 PROPANE(C-3) @ @ CURRENT 0 BUTANE(C-4) @ @ CURRENT BACKGROUND/AVG 4/4 PENTANE(C-5) @ @ HYDROCARBON SHOWS INTERVAL LITHOLOGY/REMARKS GAS DESCRIPTION 6530-6545;6630- sand 111 SAND/SANDSTONE(6530'-6640')=MEDIUM GRAY OVERALL WITH INDIVIDUAL GRAINS DOM- 6635 units; INANTLY MEDIUM TO DARK GRAY,CLEAR TO TRANSLUCENT QUARTZ AND VOLCANIC GLASS, 102 MEDIUM TO DARK GREENISH GRAY;VERY FINE UPPER TO COARSE LOWER,DOMINANTLY FINE units LOWER TO MEDIUM LOWER;ANGULAR TO SUB-ANGULAR;MODERATE TO MODERATELY WELL SORTED;UNCONSOLIDATED WITH TRACE LIGHT GRAY ASHY/CLAYEY SUPPORTED SANDSTONE;VERY FRAGILE;NON CALCAREOUS;TRACE SAND STONE;MEDIUM LIGHT GRAY;VERY FINE LOWER OCCASIONALLY GRADING TO SANDY SILTSTONE;VERY WELL SORTED;VERY HARD TO BRITTLE;VERY CALCAREOUS. LITHOLOGY Tyonek;interbedded tuffaceous sand/sand,tuffaceous siltstone/claystone and ash withh occasional thin coals and carbonaceous shales. PRESENT 10%Tuffaceous sand;30%Coal;30%Tuffaceous siltstone/claystone;20%Carbonaceous shale;10%Ash/tuff LITHOLOGY DAILY ACTIVITY PTSM and drill from 5864'to 6410'.PTSM and drill from 6410'to 6664'.Pump pressure drop noted,PJSM and clean mud intake. SUMMARY Drill from 6664'to 6801'. EPOCH PERSONNEL ON BOARD 4 DAILY COST DML 3400;RW 555 REPORT BY J.Lundy Marathon Oil Company Paxton PI EPOCH Paxton Field DAILY WELLSITE REPORT Paxton 3 REPORT FOR R.Lawson;G.Pribilski DATE Mar 17,2010 DEPTH 6854 PRESENT OPERATION Running into hole after wiper trip TIME 2400 YESTERDAY 6801 24 HOUR FOOTAGE 53 CASING INFORMATION 9 5/8"@ 2520' DEPTH INCLINATION AZIMUTH VERTICAL DEPTH SURVEY DATA BIT INFORMATION INTERVAL CONDITION REASON I NO. SIZE TYPE S/N JETS IN OUT FOOTAGE HOURS T/B/C PULLED 4 8.5 HCC-DP-605 7118417 3-11,4-12 5673 Still in 1128 22 DRILLING PARAMETERS HIGH LOW AVERAGE CURRENT AVG RATE OF PENETRATION 65.1 © 6803 37.6 © 6840 52.3 48.17 FT/HR SURFACE TORQUE 12201 © 6854 10527 @ 6808 11700.1 12201.43 AMPS WEIGHT ON BIT 11 @ 6807 7 @ 6827 9.8 9.96 KLBS ROTARY RPM 89 @ 6802 82 @ 6854 88.4 82.62 RPM PUMP PRESSURE 1882 @ 6854 1756 @ 6802 1847.7 1882.64 PSI DRILLING MUD REPORT DEPTH 6854/3724 MW 9.5 VIS 52 PV 15 YP 20 FL 5.6 Gels 8/11/12 CL- 20000 FC <1 SOL 7 SD tr OIL 3/90 MBL 6 pH 9.2 Ca+ 80 CCI MWD SUMMARY INTERVAL TO TOOLS GAS SUMMARY(units) HIGH LOW AVERAGE DITCH GAS 27 © 6804. 10 @ 6844 14.6 TRIP GAS 0 CUTTING GAS @ @ WIPER GAS 0 CHROMATOGRAPHY(ppm) SURVEY 0 METHANE(C-1) 5254 @ 6804. 1991 @ 6844 2785.3 CONNECTION GAS HIGH 0 ETHANE(C-2) @ @ AVG 0 PROPANE(C-3) @ @ CURRENT 0 BUTANE(C-4) @ @ CURRENT BACKGROUND/AVG 5/4 PENTANE(C-5) @ @ HYDROCARBON SHOWS None INTERVAL LITHOLOGY/REMARKS GAS DESCRIPTI ON LITHOLOGY Tyonek/Beluga transition;interbedded tuffaceous sand/sand,tuffaceous siltstone/claystone and ash withh occasional thin coals and carbonaceous shales. PRESENT 10%Tuffaceous sand;30%Coal;30%Tuffaceous siltstone/claystone;20%Carbonaceous shale;10%Ash/tuff LITHOLOGY PTSM,Drill from 6801'to 6854'.PJSM and circulate bottoms up.Circulate hole clean.Monitor well(static).PJSM and pull out of the hole from DAILY 6854'to 5619',back-reaming.PJSM and circulate bottoms up.Check for flow.PJSM and continue wiper trip from 5619'to 4877'back-reaming. ACTIVITY PJSM and troubleshoot top drive hydraulics.Wait on hydraulic pump.PJSM and replace hydraulic pump on top drive.Troubleshoot electrical SUMMARY problem.Unplug un-loader valve.PJSM and continue pulling out of the hole back-reaming from 4877'to shoe.PJSM,service rig.PJSM,change plug on top drive cord and test then install 37 pin cable to top drive. EPOCH PERSONNEL ON BOARD 4 DAILY COST DML 3400;RW 555 REPORT BY J.Lundy Marathon Oil Company HI EPOCH Paxton Field DAILY WELLSITE REPORT Paxton 3 REPORT FOR R.Lawson;G.Pribilski DATE Mar 17,2010 DEPTH 6854 PRESENT OPERATION Running into hole after wiper trip TIME 2400 YESTERDAY 6801 24 HOUR FOOTAGE 53 CASING INFORMATION 9 5/8"@ 2520' 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 4 8.5 HCC-DP-605 7118417 3-11,4-12 5673 Still in 1128 22 DRILLING PARAMETERS HIGH LOW AVERAGE CURRENT AVG RATE OF PENETRATION 65.1 @ 6803 37.6 @ 6840 52.3 48.17 FT/HR SURFACE TORQUE 12201 @ 6854 10527 @ 6808 11700.1 12201.43 AMPS WEIGHT ON BIT 11 @ 6807 7 @ 6827 9.8 9.96 KLBS ROTARY RPM 89 @ 6802 82 @ 6854 88.4 82.62 RPM PUMP PRESSURE 1882 @ 6854 1756 © 6802 1847.7 1882.64 PSI DRILLING MUD REPORT DEPTH 6854/3724 MW 9.5 VIS 52 PV 15 YP 20 FL 5.6 Gels 8/11/12 CL- 20000 FC <1 SOL 7 SD tr OIL 3/90 MBL 6 pH 9.2 Ca+ 80 CCI MWD SUMMARY INTERVAL TO TOOLS GAS SUMMARY(units) HIGH LOW AVERAGE DITCH GAS 27 @ 6804. 10 @ 6844 14.6 TRIP GAS 0 CUTTING GAS @ @ WIPER GAS 0 CHROMATOGRAPHY(ppm) SURVEY 0 METHANE(C-1) 5254 @ 6804. 1991 © 6844 2785.3 CONNECTION GAS HIGH 0 ETHANE(C-2) @ @ AVG 0 PROPANE(C-3) @ @ CURRENT 0 BUTANE(C-4) @ @ CURRENT BACKGROUND/AVG 5/4 PENTANE(C-5) @ @ HYDROCARBON SHOWS None INTERVAL LITHOLOGY/REMARKS GAS DESCRIPTI ON LITHOLOGY Tyonek/Beluga transition;interbedded tuffaceous sand/sand,tuffaceous siltstone/claystone and ash withh occasional thin coals and carbonaceous shales. PRESENT 10%Tuffaceous sand;30%Coal;30%Tuffaceous siltstone/claystone;20%Carbonaceous shale;10%Ash/tuff LITHOLOGY PTSM,Drill from 6801'to 6854'.PJSM and circulate bottoms up.Circulate hole clean.Monitor well(static).PJSM and pull out of the hole from DAILY 6854'to 5619',back-reaming.PJSM and circulate bottoms up.Check for flow.PJSM and continue wiper trip from 5619'to 4877'back-reaming. ACTIVITY PJSM and troubleshoot top drive hydraulics.Wait on hydraulic pump.PJSM and replace hydraulic pump on top drive.Troubleshoot electrical SUMMARY problem.Unplug un-loader valve.PJSM and continue pulling out of the hole back-reaming from 4877'to shoe.PJSM,service rig.PJSM,change plug on top drive cord and test then install 37 pin cable to top drive. EPOCH PERSONNEL ON BOARD 4 DAILY COST DML 3400;RW 555 REPORT BY J.Lundy Marathon Oil Company Paxton field DAILY WELLSITE REPORT HI EPOCH Paxton 3 REPORT FOR R.Lawson;G.Pribilski DATE Mar 18,2010 DEPTH 7414 PRESENT OPERATION Pulling out of the hole. TIME 2400 YESTERDAY 6854 24 HOUR FOOTAGE 560 CASING INFORMATION 9 5/8"@ 2520 DEPTH INCLINATION AZIMUTH VERTICAL DEPTH SURVEY DATA 7414(P) 35.70 355.31 4178.93 BIT INFORMATION INTERVAL CONDITION REASON NO. SIZE TYPE S/N JETS IN OUT FOOTAGE HOURS T/B/C PULLED 4 8.5 HCC-DP-605 7118417 3-11,4-12 5673 Still in 1771 34.83 DRILLING PARAMETERS HIGH LOW AVERAGE CURRENT AVG RATE OF PENETRATION 79.3 @ 6988 3.0 © 7400 51.8 38 FT/HR SURFACE TORQUE 14697 © 7356 9558 © 7210 11499.2 11203 AMPS WEIGHT ON BIT 17 @ 6962 -3 @ 7400 9.7 5.73 KLBS ROTARY RPM 131 @ 6862 61 @ 7057 81.9 82.62 RPM PUMP PRESSURE 2257 © 7098 1866 @ 7235 2052.0 2132.13 PSI DRILLING MUD REPORT DEPTH 7414/4179 MW 9.4 VIS 53 PV 15 YP 27 FL 5.4 Gels 10/14/15 CL- 19000 FC <1 SOL 6 SD tr OIL 3/91 MBL 5 pH 9.3 Ca+ 80 CCI MWDSUMMARY INTERVAL TO TOOLS GAS SUMMARY(units) HIGH LOW AVERAGE DITCH GAS 68 @ 7379 2 © 6855.00000 12.8 TRIP GAS 0 CUTTING GAS @ @ WIPER GAS 25©6854;7414 CHROMATOGRAPHY(ppm) SURVEY 0 METHANE(C-1) 13670 @ 7379 398 @ 6855 2577.2 CONNECTION GAS HIGH 0 ETHANE(C-2) @ @ AVG 0 PROPANE(C-3) @ @ CURRENT 0 BUTANE(C-4) @ © CURRENT BACKGROUND/AVG 5/5 PENTANE(C-5) @ © HYDROCARBON SHOWS None INTERVAL LITHOLOGY/REMARKS GAS DESCRIPTI ON LITHOLOGY Tyonek;interbedded tuffaceous sand/sand,tuffaceous siltstone/claystone and ash withh occasional thin coals and carbonaceous shales PRESENT 70%Sand/sandstone/Tuffaceous sand;10%Ash;10%Tuffaceous claystone;10%Calcareous tuff. LITHOLOGY DAILY PTSM and run into hole from 2520'to 4764'.PJSM and fill pipe.PJSM and run into hole from 4764'to 6791'.PJSM and fill pipe,wash from ACTIVITY 6791'to 6854',20'fill.Down link MWD/DD and run survey.Drill from 6854'to 7185'.PTSM and drill from 7185'to 7414'.Circulate hole clean SUMMARY and check for flow.PJSM and pull out of the hole(wipe hole)from 7414'to 7172'.Back-ream from 7172'to 6919'.Broke rod guide support bolt on top drive.Torque all bolts and safety wire.Continue pulling out of the hole from 6919'to 6854' EPOCH PERSONNEL ON BOARD 4 DAILY COST DML 3400;RW 555 REPORT BY J.Lundy Marathon Oil Company PI EPOCH Paxton Field DAILY WELLSITE REPORT Paxton 3 REPORT FOR R.Lawson;G.Pribilski DATE Mar 19,2010 DEPTH 7414 PRESENT OPERATION L/D BHA TIME 2400 YESTERDAY 7414 24 HOUR FOOTAGE 0 CASING INFORMATION 9 5/8"©2520' 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 4 8.5 HCC-DP-605 7118417 3-11,4-12 5673 7414 1741 34.83 0-0 TD 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 7414/4178 MW 9.4 VIS 50 PV 16 YP 18 FL 5.4 Gels 8/11/12 CL- 20000 FC <1 SOL 6 SD tr OIL 3/91 MBL 6 pH 9.4 Ca+ 80 CCI MWD SUMMARY INTERVAL TO TOOLS GAS SUMMARY(units) HIGH LOW AVERAGE DITCH GAS 5 @ 7414 2 @ 7414 3 TRIP GAS 0 CUTTING GAS @ @ WIPER GAS 25 CHROMATOGRAPHY(ppm) SURVEY 0 METHANE(C-1) @ @ CONNECTION GAS HIGH 0 ETHANE(C-2) @ @ AVG 0 PROPANE(C-3) © @ CURRENT 0 BUTANE(C-4) @ © CURRENT BACKGROUND/AVG 2/2 PENTANE(C-5) © © HYDROCARBON SHOWS None INTERVAL LITHOLOGY/REMARKS GAS DESCRIPTION LITHOLOGY Tyonek;interbedded tuffaceous sand/sand,tuffaceous siltstone/claystone and ash withh occasional thin coals and carbonaceous shales PRESENT 70%Sand/sandstone/Tuffaceous sand;10%Ash;10%Tuffaceous claystone;10%Calcareous tuff. LITHOLOGY DAILY PTSM,Run into hole from 6854'to 7414'.PJSM and circulate bottoms up then pull out of the hole&R.F.T.PJSM and re-log gamma ray from ACTIVITY 7245'to 7170'.PJSM and pull out of the hole pressure testing at points.Begin pressure testing at points between 7125'and 5080'.PTSM and SUMMARY continue pressure testing at points to 2800'.PJSM,blow down lines and top drive and pull out of the hole.PJSM and lay down BHA elements EPOCH PERSONNEL ON BOARD 4 DAILY COST DML 2975;RW 555;Consulting 1300 REPORT BY J.Lundy Marathon Oil Company HI EPOCH Paxton Field DAILY WELLSITE REPORT Paxton 3 REPORT FOR R.Lawson;G.Pribilski DATE Mar 20,2010 DEPTH 7414. PRESENT OPERATION Pulling out of the hole TIME 2400 YESTERDAY 7414 24 HOUR FOOTAGE 0 CASING INFORMATION 9 5/8"@ 2520 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 4 8.5 HCC-DP-605 7118417 3-11,4-12 5673 7414 1741 54.83 O-O-NO-A-X-D-NO-TD TD 5 8.5 HCC-MXL-1 6054215 OPEN 7414 STILL IN Clean out hole 0 DRILLING PARAMETERS HIGH LOW AVERAGE CURRENT AVG RATE OF PENETRATION @ @ FT/HR SURFACE TORQUE @ @ AMPS WEIGHT ON BIT @ @ KLBS ROTARY RPM @ @ RPM PUMP PRESSURE @ @ PSI DRILLING MUD REPORT DEPTH 7414/4178 MW 9.5 VIS 51 PV 14 YP 17 FL 5.2 Gels 7/11/12 CL- 20000 FC <1 SOL 7 SD tr OIL 3/90 MBL 7 pH 9.7 Ca+ 80 CCI MWD SUMMARY INTERVAL TO TOOLS GAS SUMMARY(units) HIGH LOW AVERAGE DITCH GAS 31u TG @ 7414 @ TRIP GAS 31u @ 7414' CUTTING GAS @ @ WIPER GAS 0 CHROMATOGRAPHY(ppm) SURVEY 0 METHANE(C-1) @ @ CONNECTION GAS HIGH 0 ETHANE(C-2) @ @ AVG 0 PROPANE(C-3) @ @ CURRENT 0 1 BUTANE(C-4) @ @ CURRENT BACKGROUND/AVG 2/2 PENTANE(C-5) @ @ HYDROCARBON SHOWS nONE INTERVAL LITHOLOGY/REMARKS GAS DESCRIPTI ON LITHOLOGY Tyonek;interbedded tuffaceous sand/sand,tuffaceous siltstone/claystone and ash withh occasional thin coals and carbonaceous shales PRESENT 70%Sand/sandstone/Tuffaceous sand;10%Ash;10%Tuffaceous claystone;10%Calcareous tuff. LITHOLOGY PTSM,handle BHA.Download MWD/LWD/DD tools.PJSM,rig down auto-track.Download tool.Clean up rig floor.PJSM,Pick up test tools, DAILY prep rig and test BOPS per plan.PTSM,test plug stuck.Pump out stack and equipment.Unscrew from test plug.Screw into test plug with 5"drill ACTIVITY pipe and pull free with blocks,10K over.PJSM,install wear bushing.Blow down choke,top drive and mud lines.Adjust brakes.PJSM,make up SUMMARY bit and bit sub with HWDP and jars.Run into hole with 5"drill pipe to 7414',5'fill.Circulate hole clean.Check for flow.Mix and pump dry job. Drop rabbit. EPOCH PERSONNEL ON BOARD 2 DAILY COST DML 2225;RW 555 REPORT BY J.Lundy Marathon Oil Company Paxton Field DAILY WELLSITE REPORT El EPOCH Paxton 3 REPORT FOR R.Lawson;G.Pribilski DATE Mar 21,2010 DEPTH 7414. PRESENT OPERATION RIH with 4 1/2"production liner TIME 2400 YESTERDAY 7414 24 HOUR FOOTAGE 0 CASING INFORMATION 9 5/8"@ 2520 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 5 8.5 HCC-MXL-1 6054215 OPEN 7414 7414 0 0 0-0-NO-(-)-IN-IN-IN-TD TD 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 7414/4178 MW 9.4 VIS 51 PV 13 YP 19 FL 5.4 Gels 8/11/12 CL- 19000 FC <1 SOL 6.5 SD tr OIL 3/90 MBL 7 pH 9.5 Ca+ 80 CCI MWD SUMMARY INTERVAL TO TOOLS GAS SUMMARY(units) HIGH LOW AVERAGE DITCH GAS 11u TG @ 7414 @ TRIP GAS 11u @ 7414' CUTTING GAS @ @ WIPER GAS 0 CHROMATOGRAPHY(ppm) SURVEY 0 METHANE(C-1) @ © CONNECTION GAS HIGH 0 ETHANE(C-2) @ © AVG 0 PROPANE(C-3) @ @ CURRENT 0 BUTANE(C-4) @ @ CURRENT BACKGROUND/AVG 1/1 PENTANE(C-5) @ @ HYDROCARBON SHOWS none INTERVAL LITHOLOGY/REMARKS GAS DESCRIPTI ON LITHOLOGY Tyonek;interbedded tuffaceous sand/sand,tuffaceous siltstone/claystone and ash withh occasional thin coals and carbonaceous shales PRESENT 70%Sand/sandstoneiTuffaceous sand;10%Ash;10%Tuffaceous claystone;10%Calcareous tuff. LITHOLOGY PTSM,blow down top drive and pumps.PJSM,POOH from 7414 to 659'.PJSM,fill trip tank and blow down.PJSM,continue POOH and L/D DAILY HWDP,recover rabbit at top of jars.PJSM,rig up floor to run 4 Y"production casing.PJSM,R/U Weatherford tools.PJSM,run 4 W liner ACTIVITY assembly.PTSM,continue to run 4 W liner as per program.Pump casing volume.Continue to run into hole with liner as per program.PJSM, SUMMARY R/U and circulate liner.Change bails and elevators.R/U seal bore assembly.R/U bigger Weatherford tongs.Pick up stinger.M/U wiper plug and install seal bore.M/U hanger.R/D Weatherford tongs.Put in pal mix EPOCH PERSONNEL ON BOARD 2 DAILY COST DML 2225;RW 555 REPORT BY J.Lundy Marathon Oil Company El EPOCH Paxton Field DAILY WELLSITE REPORT Paxton 3 REPORT FOR R.Lawson;G.Pribilski DATE Mar 22,2010 DEPTH 7414. PRESENT OPERATION RIH with HWDP TIME 2400 YESTERDAY 7414 24 HOUR FOOTAGE 0 CASING INFORMATION 9 5/8"@ 2520 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 5 8.5 HCC-MXL-1 6054215 OPEN 7414 0 0 DRILLING PARAMETERS HIGH LOW AVERAGE CURRENT AVG RATE OF PENETRATION @ @ FT/HR SURFACE TORQUE @ @ AMPS WEIGHT ON BIT @ @ KLBS ROTARY RPM @ @ RPM PUMP PRESSURE @ @ PSI DRILLING MUD REPORT DEPTH 7414/4178 MW 9.5 VIS 52 PV 14 YP 18 FL 5.4 Gels 7/11/12 CL- 18000 FC <1 SOL 6.5 SD tr OIL 3/91 MBL 7 pH 9.2 Ca+ 80 CCI MWD SUMMARY INTERVAL TO TOOLS GAS SUMMARY(units) HIGH LOW AVERAGE DITCH GAS @ @ TRIP GAS 11u @7414'pre cmt CUTTING GAS @ @ WIPER GAS 0 CHROMATOGRAPHY(ppm) SURVEY 0 METHANE(C-1) @ @ CONNECTION GAS HIGH 0 ETHANE(C-2) @ @ AVG 0 PROPANE(C-3) @ @ CURRENT 0 BUTANE(C-4) @ @ CURRENT BACKGROUND/AVG 1/1 PENTANE(C-5) © @ HYDROCARBON SHOWS none INTERVAL LITHOLOGY/REMARKS GAS DESCRIPTION LITHOLOGY Tyonek;interbedded tuffaceous sand/sand,tuffaceous siltstone/claystone and ash withh occasional thin coals and carbonaceous shales PRESENT 70%Sand/sandstone/Tuffaceous sand;10%Ash;10%Tuffaceous claystone;10%Calcareous tuff. LITHOLOGY PTSM and run into hole with 4'/:"liner&hanger on drill pipe to 7414'.Circulate and attempt to rotate.Space out.Make up cement head.PJSM DAILY and pump cement per plan.Drop wiper and displace with 90 bbls brine and 20 bbls 9.5ppg mud.No bump plug.Lay down cement head and ACTIVITY PUPs.PTSM and pull out of the hole with 5"drill pipe.PJSM,lay down hanger and stinger.Rig down rig tongs and spinners.Rig up Weatherford. SUMMARY Lay down seal bore assembly.PJSM,pull out of the hole with 4.5"liner,23 joints.Rig down Weatherford tools.Clean cement from rig floor and trip tank.Pick up flush tool and flush BOP stack and function test.PJSM blow down top drive.Stage and strap BHA,jam and HWDP.PJSM,Pick up/make up and run into hole with bit,BHA and HWDP EPOCH PERSONNEL ON BOARD 2 DAILY COST DML 2225;RW 555 REPORT BY J.Lundy Marathon Oil Company Paxton Field DAILY WELLSITE REPORT El EPOCH Paxton 3 REPORT FOR R.Lawson;G.Pribilski DATE Mar 22,2010 DEPTH 7414. PRESENT OPERATION RIH with HWDP TIME 2400 YESTERDAY 7414 24 HOUR FOOTAGE 0 CASING INFORMATION 9 5/8"@ 2520 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 5 8.5 HCC-MXL-1 6054215 OPEN 7414 0 0 DRILLING PARAMETERS HIGH LOW AVERAGE CURRENT AVG RATE OF PENETRATION @ @ FT/HR SURFACE TORQUE @ @ AMPS WEIGHT ON BIT @ @ KLBS ROTARY RPM @ @ RPM PUMP PRESSURE @ @ PSI DRILLING MUD REPORT DEPTH 7414/4178 MW 9.5 VIS 52 PV 14 YP 18 FL 5.4 Gels 7/11/12 CL- 18000 FC <1 SOL 6.5 SD tr OIL 3/91 MBL 7 pH 9.2 Ca+ 80 CC! MWD SUMMARY INTERVAL TO TOOLS GAS SUMMARY(units) HIGH LOW AVERAGE DITCH GAS @ @ TRIP GAS 11u @7414'pre cmt CUTTING GAS @ @ WIPER GAS 0 CHROMATOGRAPHY(ppm) SURVEY 0 METHANE(C-1) @ @ CONNECTION GAS HIGH 0 ETHANE(C-2) @ @ AVG 0 PROPANE(C-3) @ @ CURRENT 0 BUTANE(C-4) @ @ CURRENT BACKGROUND/AVG 1/1 PENTANE(C-5) @ @ HYDROCARBON SHOWS none INTERVAL LITHOLOGY/REMARKS GAS DESCRIPTION LITHOLOGY Tyonek;interbedded tuffaceous sand/sand,tuffaceous siltstone/claystone and ash withh occasional thin coals and carbonaceous shales PRESENT 70%Sand/sandstone/Tuffaceous sand;10%Ash;10%Tuffaceous claystone;10%Calcareous tuff. LITHOLOGY PTSM and run into hole with 4 W liner&hanger on drill pipe to 7414'.Circulate and attempt to rotate.Space out.Make up cement head.PJSM DAILY and pump cement per plan.Drop wiper and displace with 90 bbls brine and 20 bbls 9.5ppg mud.No bump plug.Lay down cement head and ACTIVITY PUPs.PTSM and pull out of the hole with 5"drill pipe.PJSM,lay down hanger and stinger.Rig down rig tongs and spinners.Rig up Weatherford. SUMMARY Lay down seal bore assembly.PJSM,pull out of the hole with 4.5"liner,23 joints.Rig down Weatherford tools.Clean cement from rig floor and trip tank.Pick up flush tool and flush BOP stack and function test.PJSM blow down top drive.Stage and strap BHA,jars and HWDP.PJSM,Pick up/make up and run into hole with bit,BHA and HWDP EPOCH PERSONNEL ON BOARD 2 DAILY COST DML 2225;RW 555 REPORT BY J.Lundy 1 Marathon Oil Company PI EPOCH Ninilchik Unit DAILY WELLSITE REPORT Paxton 3 REPORT FOR Rowland Lawson DATE Mar 23,2010 DEPTH 7414 PRESENT OPERATION Washing over fish TIME 24:00 YESTERDAY 7414 24 HOUR FOOTAGE 0 CASING INFORMATION 9 5/8"@ 2520' 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 5RR2 8.5 HCC MXL-1 6054215 Open N/A N/A 0 N/A NG Fish found Show with wash pipe 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 7414/4178 MW 9.2 VIS 55 PV 14 YP 22 FL 7.2 Gels 10/14/15 CL- 18000 FC 1 SOL 5.0 SD Tr OIL 2/93 MBL 4.0 pH 10.5 Ca+ 400 CCI MWD SUMMARY INTERVAL TO TOOLS GAS SUMMARY(units) HIGH LOW AVERAGE DITCH GAS 5 © 3264 0 @ 2 TRIP GAS 5 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 0/1 PENTANE(C-5) @ @ HYDROCARBON SHOWS INTERVAL LITHOLOGY/REMARKS GAS DESCRIPTION LITHOLOGY PRESENT LITHOLOGY Continue to drift,pickup,makeup and run in hole with HWDP to 701'.Continue running in hole with 5"drill pipe to 2530'(just outside shoe). Circulate bottoms up.Pull back into shoe to transfer fluid.Continue circulating while waiting on truck.Perform transfer while circulating.Wash down from 2530'and tag fish at 3264'.Stand back 1 stand.Resume circulating and circulate out.Pull out of hole from 3236'to 2473'.(Ream and DAILY backream through tight spot at 2905'on way out).Circulate out.Check for flow.Pull out of hole from 2473'to top of HWDP at 701'.Wait on orders. ACTIVITY Run back in hole from 701'to 2473'.Break circulation,fill pipe and monitor hole while continuing to circulate.Continue running in hole from 2473' SUMMARY to 3230'.Break circulation and displace hole with new mud.Check for flow.Pull out of hole with 5"drill pipe and HWDP.Pull,break and lay down jars,stabilizers,CSDPs,crossover,bit sub and bit.Stage fishing tools.Change shoe and Ext on boot basket.Pick up,make up and run in hole fishing assembly(shoe,wash pipe Ext,boot bucket,LBS,oil jars).Continue running in hole with 5"HWDP and drill pipe to 2590'.Break circulation and wash down from 2590'to 3264'.Wash over fish from 3264'to 3269'. EPOCH PERSONNEL ON BOARD 2 DAILY COST DML 2225 RW 555 REPORT BY Craig Silva 4 Marathon Oil Company EPOCH Ninilchik Unit DAILY WELLSITE REPORT Paxton 3 REPORT FOR Rowland Lawson DATE Mar 24,2010 DEPTH 7414 PRESENT OPERATION Laying down washover-mill-dress out assembly TIME 24:00 YESTERDAY 7414 24 HOUR FOOTAGE 0 CASING INFORMATION 9 5/8"@ 2520' 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 Washover-mill assembly 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 7414/4178 MW 9.3 VIS 56 PV 15 YP 21 FL 5.4 Gels 8/11/12 CL- 22000 FC 1 SOL 6.0 SD Tr OIL 3/91 MBL 6.0 pH 10.0 Ca+ 360 CCI MWD SUMMARY INTERVAL TO TOOLS GAS SUMMARY(units) HIGH LOW AVERAGE DITCH GAS 3 @ 3264 0 @ 1 TRIP GAS 3 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 0/1 PENTANE(C-5) @ @ HYDROCARBON SHOWS INTERVAL LITHOLOGY/REMARKS GAS DESCRIPTION LITHOLOGY PRESENT LITHOLOGY Continue washing over fish from 3269'to 3273'.Circulate bottoms up.Pull out of hole from 3273'to top of HWDP at 661'.Pull and stand back HWDP.Lay down wash pipe.Clean out basket.Pick up and make up mill.Service carrier.Grease drive lines.Grease crown.Lay down remaining mill assembly.Lube topdrive and blocks.Slip drilling line.Pick up,make up and run in hole special assembly(cutter shoe,multiple mills,wash DAILY pipe Exts,crossovers,boot basket,bumper sub,oil jars)to wash over,mill and dress the previously washed-over uppermost section of 4 1/2" ACTIVITY liner.Continue running in hole with 5"HWDP and drill pipe to 2820'.Break circulation.Wash down from 2820'to 3264'.Mill and dress outside top SUMMARY of fish(with washover cutters)from 3264'to 3266'.Continue milling and dressing down with muli-stage mills(to 3279'with outside washover cutters,to 3271'with small internal mill and 3268'with top edge mill).Circulate out.Check for flow.Pump dry job.Pull out of hole to top of HWDP. Pull,break and lay down 5"HWDP.Pull out milling-dressing assembly above floor and inspect.Break and lay down assembly tools(cutter shoe, multiple mills,wash pipe Exts,crossovers,boot basket,bumper sub,oil jars).Clean boot basket.Wash and inspect metal shavings from boot basket. EPOCH PERSONNEL ON BOARD 2 DAILY COST DML 2525 RW 555 REPORT BY Craig Silva Marathon Oil Company HI EPOCH Ninilchik Unit DAILY WELLSITE REPORT Paxton 3 REPORT FOR Rowland Lawson DATE Mar 25,2010 DEPTH 7414 PRESENT OPERATION Pulling out of hole(with polish mill assembly)laying down drill pipe TIME 24:00 YESTERDAY 7414 24 HOUR FOOTAGE 0 CASING INFORMATION 9 5/8" 2520' 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 Polish mill assembly 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 7414/4178 MW 9.3 VIS 52 PV 15 YP 23 FL 5.5 Gels 8/11/12 CL- 22000 FC 1 SOL 5.5 SD Tr OIL 3/92 MBL 6.0 pH 10.0 Ca+ 440 CCI MWD SUMMARY INTERVAL TO TOOLS GAS SUMMARY(units) HIGH LOW AVERAGE DITCH GAS 4 © Displacing cmt 0 @ 1 TRIP GAS 3 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 0/1 PENTANE(C-5) HYDROCARBON SHOWS INTERVAL LITHOLOGY/REMARKS GAS DESCRIPTION LITHOLOGY PRESENT LITHOLOGY Clear and clean rig floor.Lay down pipe elevators.Change out bails.Pick up and install liner elevators.Rig up Weatherford.Hold pre-job meeting on running 4 1/2"liner.Pick up special Baker overshot with lip guide and internal 2-stage combined basket grapple-packoff.Make up overshot to CS cementing tool,pup joint and first joint of liner.Run 4 1/2"liner as per Marathon.Rig down and load off Weatherford floor equipment.Change out bails and elevators and prep rig floor to run drill pipe.Pick up and make up liner hanger assembly.Rig down and load off Weatherford tongs. Break circulation.Continue running dual assemblies in hole on 5"drill pipe from 1015'to 3233'.Continue circulating and make up cementing head with pup joint.Wash down from 3233'and tag polished stub end with lip guide at 3265'.Engage liner stub with overshot and slide down 4'to close with packoff.Pressure up to 1100psi and hold for 5 minutes to test overshot-liner seals.Pressure up to 1900psi to open DV tool.Set liner hanger DAILY and circulate out.Switch to cement line and pump 3 bbls water to fill lines.Test lines to 4500psi.Mix and pump 40 bbls of 10.Oppg MCS4 sweep ACTIVITY (using 34.8bbls of fresh water).Follow sweep with 64.64 bbls of 15.8ppg cement slurry(mixed with 305 sacks of Class G cement plus additives SUMMARY and accelerants to 35.8 bbls of water to mix to result in 4.932 gal/sk and 1.19 cuft/sk).Close valve to DP and open lines to wash-up line.Pump 5 bbls water(until returns are clean).Open back to drill pipe.Drop plug.Pump 53.5 bbls mud(slowing rate to 1-2 bpm after 50 bbls)and bump plug with 1000psi over displacement pressure.Bleed off to check that DV ports are closed.Pressure up to 3500psi to release from hanger.Bleed off pressure and confirm tool is free from hanger.Turn over to rig.Put 500psi on drill pipe.Pull running tool free and circulate out spacer and 2 bbls of excess cement to surface.Rig down and lay down cementing head.Blow down cementing lines.Clean up rig floor.Pull out of hole laying down 5" drill pipe.Lay down hanger running tool.Pick up cementing head and make service breaks.Pick up and make up polish mill assembly(polish mill, extension subs,top dress mill).Run in hole with polish mill assembly and 5"drill pipe to 2262'.Polish seal bore and liner top.Pull out of hole laying down 5"drill pipe. EPOCH PERSONNEL ON BOARD 2 DAILY COST DML 2525 RW 555 REPORT BY Craig Silva