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Home My WebLink About211-149& & & & && &&& y=fThNn^edmy CrmfyKTaayadmf)?ar\y?ThWehNn^edmy .hNPnrhTyCn^craNnTy )y ?raayFrO^d\yy =fThNn^edmym]rnRetdy ?TjehcTR"y 1dmnNaayK]^fmneP`y ?TjehNnTy =n]ThyCn^craNnTy *y %anThy(Nm^d\y*y (]Nd\Ty%ffhesTRy?he\hNcy :eRy%l^ZP^Nay6^q)y ?TjehNnTy<Tty?eeay ATfN^hKTaay )y (e^aTRyFrO^d\y=fmy =n]Th"y y=fThNnehy<NcT yKTaay(aNmmy'TUehTyKeh`"y y?Thc^nyney+h^aay<rcOTh" (ee`y1daTny<NnrhNay/NmyCnehN\Ty%aNm`Ny66(+TsTaefcTdny -ufaehNnehwy )y !y y%RRhTmm"CnhNn^\hNf]^Py )y CThs^PTy y%?1y<rcOTh"y ?=y'euy!!!y%dP]ehN\Ty%4y!!!y y y?hefThovy+Tm^\dNn^edy6TNmTy<rcOTh"y yKTaay<NcTyNdRy<rcOTh" %+6y!y %+6y!y & !y6e\my6^mnyae\myNdRymrOc^nyTaTPnhed^PyRNnNyfThy%&(" .^TaR?eeam" 1d_TPn^edy?heU^aT $" && #&$!"&!! ?hTmTdnyKTaay(edR^n^edyCrccNhw" FenNay+Tfn]y cTNmrhTRy!y XTny ?ar\my cTNmrhTRy!y UTTny nhrTysTl^PNay y UTTny 3rd`y cTNmrhTRy!y UTTny -YTPn^sTy+Tfn]y cTNmrhTRy!y XTny ?NP`Thy cTNmrhTRyy UTTny nhrTysTl^PNay!y UTTny nhrTysTl^PNayy UTTny CnhrPnrhNay (edRrPnehy y y y y <%y <%y CrkNPTy !y yy !y y yfm^y !yfm^y 1dnThcTR^NnTy y !yy y !y yfm^y !yfm^y ?heRrPn^edy 6^dThy y y !!y y yfm^y yfm^y ?TiehNn^edyRTfn]y :TNmrhTRyRTfn]y y ! y y>y y ! !y! !y FhrTyITl^PNayRTfn]y! !y!! y y y y y FrO^d\ym^xTy\hNRTycTNmrhTRyNdRynhrTysTl^PNayRTfn]y yy 6 y y:+y FI+y ?NP`ThmyNdRyCCCIynvfTycTNmrhTRyNdRynhrTysTl^PNayRTfn]y '01y!yyML?y6yF?y0-Cyy.L-yCCCIy @5Byy;,y yGJ, yDDDJyy;, yGJ,y yCn^craNn^edyehyPTcTdnymgrTTxTymrccNhw" 1dnThsNamynhTNnTRycTNmrhTR"y FhTNncTdnyRTmPh^fn^edmy^dParR^d\ysearcTmyrmTRyNdRyU^dNayfhTmmrhT"y Ny ATfhTmTdnNn^sTy+N^avy%sThN\Ty?heRrPn^edyehy1d_TPn^edy+NnNy =^a 'Oay /Nm :PUy KNnTh 'Oay (Nm^d\y?hTmmrhTy FrO^d\y?hTmmrhTy ?h^ehyneytTaayefThNn^ed"y >y ycPVSy y yfm^y yfm^y CrOmTgrTdnyneyefThNn^ed"y >y ycPVSy y yfm^y yfm^y Oy?eeamyNPn^sTyN[Thyteh`"y y%pnNP]cTdnmy yKTaay(aNmmyN[Thyteh`"y +N^avyATfehnyeUyKTaay=fThNn^edmy -ufaehNnehwy +TsTbefcTdoyCThs^PTy CnhNn^\hNf]^Py (ef^TmyeUy6e\myNdRyCrhsTvmyArdy yKTaayCnNnrmyN[Thyteh`"y =^ay 8y /Nmy 8y K+C?69y -aTPnhed^Py.hNPnrhTyCn^craNn^edy+NnNy /CF=Ay K2<3y K%/y /2<3y y EHC?C?7H/y CrdRhvy<rcOThyehy<%y^Uy(=y-uTcfn"y y %rn]eh^xTRy<NcTyNdRy +^\^nNayC^\dNnrhTyt^n]y+NnT"y (ednNPny<NcT"y 3N`Ty.aehNy (ednNPny-cN^a"y !"#" "%!& %rn]eh^xTRyF^naT#y (ednNQy?]edT#y ! y Chy?Tny-d\"y Chy?Tny/Te"y ChyATmy-d\"y .ehcy yATs^mTRyy +rTyK^n]^dyyRNvmyeUy=fThNn^edmy CrOc^ny^dy?+.yUehcNnyneyNe\PPfThc^nn^d\$NaNm`N\esy By Grace Christianson at 8:28 am, Jun 04, 2025 BJM 9/19/25 DSR-6/18/25 RBDMS JSB 061225 Page 1/1 Well Name: CLUS-1 Report Printed: 5/18/2025www.peloton.com Daily Operations Report (Completion) Operator CINGSA API/UWI 50-133-20600-00-00 Pad Name CINGSA Pad State/Province Alaska Weather Clear Temperature (°F) 44.0 Wind Road Condition Good Head Count Start Depth (ftKB) 0.0 End Depth (ftKB) 0.0 Operations at Report Time Well secured for night. Resume operations in AM. Contractor Fox Rig # CTU-10 Last Casing String Operations Summary AOL, Rig up, BOP Test Operations Next Report Period Drift, Memory I-Prof Job Time Log Start Time Dur (hr) End Time Start Depth (ftKB) End Depth (ftKB)Code 1 Com 08:30 0.50 09:00 Fox CTU crew AOL. PJSM w/ Fox, CINGSA, Cruz, & ASRC personnel 09:00 2.50 11:30 Spot in CTU unit, crane, iron trailer, and pump 11:30 3.00 14:30 Pull tree cap flange. Nipple up BOPs and knock up hardline 14:30 2.50 17:00 Begin BOP test using field triplex; Blind Shear rams and choke skid valves 17:00 0.67 17:40 Pick injector, M/U 10' lubricator 17:40 0.33 18:00 M/U Yellow Jacket CTC, pull test to 30k. Pass 18:00 0.33 18:20 Fluid pack reel w/ 45 bbls fresh water. PT CTC to 3150 psi. Pass 18:20 0.42 18:45 Stab on well. Continue to BOP test; Pipe Slip rams and full body test. Pass 18:45 1.08 19:50 Fire up N2 pump. Blow reel dry w/ 25,000 SCF N2. 19:50 0.50 20:20 Pop off well, drop lubricator, cradle injector. Install night cap on BOPs, well secured. 20:20 0.17 20:30 End day. Personnel off location. Perforations Date Int # Type Shot Dens (shoEntered SCalculateTop (ftKB) Btm (ftKB) Top (TVD) (ftKBBtm (TVD) (ftKBComment Gun Description Gun Size (in) Charge Size (g) Charge Type Charge Make Phasing (°) Conveyance Method Carrier Description Equipment Pressure Tests Date Test Type Comment Next Test Date Casing Strings Run Date Casing Description ID (in) OD (in) String Grade Set Depth (ftKB) Comment Report #: 1.0 Report Start Date: 5/16/2025 Page 1/1 Well Name: CLUS-1 Report Printed: 5/18/2025www.peloton.com Daily Operations Report (Completion) Operator CINGSA API/UWI 50-133-20600-00-00 Pad Name CINGSA Pad State/Province Alaska Weather Clear Temperature (°F) 41.0 Wind Road Condition Good Head Count Start Depth (ftKB) 0.0 End Depth (ftKB) 0.0 Operations at Report Time Securing well for night Contractor Fox Rig # CTU-10 Last Casing String Operations Summary Drift / Tag, Memory IPROF Operations Next Report Period RDMO Job Time Log Start Time Dur (hr) End Time Start Depth (ftKB) End Depth (ftKB)Code 1 Com 07:00 0.25 07:15 Return to location. PJSM w/ Fox, CINGSA, Read, & ASRC personnel. 07:15 0.75 08:00 Pull night cap. Pick injector, M/U 20' lubricator 08:00 1.00 09:00 M/U Yellow Jacket BHA. Stab on well. 09:00 0.02 09:01 Open Well. T/I/O 1130/200/0 09:01 2.32 11:20 0.0 9,527.0 RIH w/ Yellow Jacket BHA: CTC 2.87" x 0.87' + XO 2.87" x 0.68' + DFCV 2.12" x 1.04' + Disco (5/8" Ball) 2.12" x 1.58' + Stem 2.11" x 4.78' + XO 2.87" x 0.32' + JSN 3.9" x 0.66'. OAL = 9.93' 11:20 1.92 13:15 9,527.0 0.0 Tag top of fish @ 9,527' mechanical. 7.7k RIH WT Electronic counter cut out while RIH. PUH to 9,450' Flag pipe. Open injection; 1412 psi @ 17 mmscf. 21.5k up wt. POOH 13:15 2.25 15:30 0.0 On surface, shut in well. Unflange quick union from top of BOP, make up additional 10' riser to cover logging string. 15:30 0.67 16:10 Flanged up on well. Troubleshoot level wind. 16:10 0.02 16:11 Open Well. T/I/O 1430/200/0 16:11 1.33 17:31 0.0 7,300.0 RIH w/ Yellow Jacket BHA: CTC 2.87" x 0.87' + XO 2.87" x 0.68' + DFCV 2.12" x 1.04' + Disco (5/8" Ball) 2.12" x 1.58' + XO 2.0" x 0.55' + Read IPROF String 2.13" x 27.38'. OAL = 32.1' 17:31 0.63 18:09 7,300.0 9,450.0 Log down @ 60 fpm; 14.4 mmscf/d 18:09 0.63 18:47 9,450.0 7,300.0 Log up @ 60 fpm; 14.2 mmscf/d. Electronic counter skipped 80' while logging up, scrap pass. 18:47 0.45 19:14 7,300.0 9,450.0 Log down @ 90 fpm; 14.1 mmscf/d 19:14 0.62 19:51 9,450.0 7,300.0 Log up @ 90 fpm; 13.6 mmscf/d. Horse head latch popped while logging up, stop and fix. Scrap pass. 19:51 0.78 20:38 9,450.0 7,300.0 Log up @ 90 fpm; 13.6 mmscf/d. RBIH 20:38 0.60 21:14 9,450.0 7,300.0 Log up @ 60 fpm; 13.2 mmscf/d. RBIH 21:14 0.87 22:06 9,200.0 7,300.0 PUH performing 5 minute stop counts @ 8,800', 8,500', 7,900', & 7,300'. 22:06 1.23 23:20 7,300.0 0.0 End of stop counts. POOH 23:20 0.33 23:40 0.0 OOH, shut in well. Unflange riser from BOP. 23:40 0.17 23:50 Break off memory tools. Rig down riser and lubricator. 23:50 0.15 23:59 Continue to 05/18 Perforations Date Int # Type Shot Dens (shoEntered SCalculateTop (ftKB) Btm (ftKB) Top (TVD) (ftKBBtm (TVD) (ftKBComment Gun Description Gun Size (in) Charge Size (g) Charge Type Charge Make Phasing (°) Conveyance Method Carrier Description Equipment Pressure Tests Date Test Type Comment Next Test Date Casing Strings Run Date Casing Description ID (in) OD (in) String Grade Set Depth (ftKB) Comment Report #: 2.0 Report Start Date: 5/17/2025 Page 1/1 Well Name: CLUS-1 Report Printed: 5/18/2025www.peloton.com Daily Operations Report (Completion) Operator CINGSA API/UWI 50-133-20600-00-00 Pad Name CINGSA Pad State/Province Alaska Weather Clear Temperature (°F) 43.0 Wind Road Condition Good Head Count Start Depth (ftKB) 0.0 End Depth (ftKB) 0.0 Operations at Report Time Job complete Contractor Fox Rig # CTU-10 Last Casing String Operations Summary Completed rig down. Turned well back to CINGSA Operations Next Report Period Job Time Log Start Time Dur (hr) End Time Start Depth (ftKB) End Depth (ftKB)Code 1 Com 00:00 1.00 01:00 Well secured. Injector racked on unit. Leave location. 11:00 0.25 11:15 Return to location. PJSM w/ Fox, CINGSA & ASRC personnel. 11:15 1.73 12:59 Begin rig down. 12:59 0.02 13:00 Rig down complete. End job Perforations Date Int # Type Shot Dens (shoEntered SCalculateTop (ftKB) Btm (ftKB) Top (TVD) (ftKBBtm (TVD) (ftKBComment Gun Description Gun Size (in) Charge Size (g) Charge Type Charge Make Phasing (°) Conveyance Method Carrier Description Equipment Pressure Tests Date Test Type Comment Next Test Date Casing Strings Run Date Casing Description ID (in) OD (in) String Grade Set Depth (ftKB) Comment Report #: 3.0 Report Start Date: 5/18/2025 Jake Flora ASRC Consulting & Environmental Services, LLC Petroleum Engineer (720) 988-5375 jflora@asrcenergy.com 1 May 27, 2025 Alaska Oil and Gas Conservation Commission Natural Resource Technician 333 W 7th Ave, Suite 100 Anchorage, Alaska 99501 RE: DATA TRANSMITTAL 001 WELL: CINGSA CLU S 1 PTD: 211-149 API: 50-133-20600-00-00 Name Type x >h^ϭ/ŶũĞĐƚŝŽŶWƌŽĨŝůĞ>ŽŐ W&͕>^ x >h^ϭKƉĞƌĂƚŝŽŶƐ^ƵŵŵĂƌǇZĞƉŽƌƚ W& Data Transfer Folder: CINGSA Well Logs Subfolders: 211-149 CLU Storage 1 / IPROF May 2025 Please acknowledge receipt by signing and returning one copy of this transmittal. Received By: Date: 211-149 T40441 Gavin Gluyas Digitally signed by Gavin Gluyas Date: 2025.05.27 08:15:00 -08'00' By Grace Christianson at 2:56 pm, Mar 19, 2025 325-154 X Performance test SSSV within 5 days after it is reinstalled, provide 24 hrs notice to AOGCC. SFD 3/21/2025BJM 3/19/25 CT BOP test to 3000 psi. DSR-3/28/25 10-404 *&: Jessie L. Chmielowski Digitally signed by Jessie L. Chmielowski Date: 2025.04.01 08:43:56 -08'00'04/01/25 RBDMS JSB 040225 Cook Inlet Natural Gas Storage Alaska, LLC 3000 Spenard Road PO Box 190989 Anchorage, AK 99519-0989 Main: 907-334-7980 Fax: 907-334-7671 www.cingsa.com March 19, 2025 Mrs. Jessie Chmielowski, Commissioner Mr. Greg Wilson, Commissioner Alaska Oil and Gas Conservation Commission 333 W 7th Ave., Suite 100 Anchorage, Alaska 99501 RE: Application for Sundry Approval Cook Inlet Natural Gas Storage Alaska, LLC (CINGSA): CLU Storage 1 PTD: 211-149 Dear Commissioners, Cook Inlet Natural Gas Alaska, LLC (CINGSA), hereby applies for Sundry Approval to perform diagnostic monitoring work for the CLU Storage 1 gas storage injection well, located in Kenai, Alaska. Please find attached for review of the Commission the 10-403 Form, Completion Procedure, Current Well Schematic, and BOPE Diagram. Fox Coiled Tubing will be used to complete this work, commencing approximately April 1, 2025. If you have any questions regarding the enclosed application, please contact Jake Flora at (720) 988-5375. Sincerely, Mathew Federle CINGSA Director To: Matt Federle Director of CINGSA From: Jake Flora / Doug Cismoski P.E. ASRC Consulting & Environmental Well Name: CLU Storage 1 API: 50-133-20600-00-00 PTD: 211-149 Status: Active Gas Storage Well Engineer: Jake Flora, (720) 988-5375 Well Summary: CLU Storage 1 was the first storage well drilled after the creation of CINGSA and remains the top producing storage wellbore in the Cannery Loop Field. In the spring of 2024 the well performance declined due to sand entering the wellbore. A coiled tubing cleanout was performed followed by placing the well back in service. The purpose and scope of this sundry is to proactively identify potential sand influx into the wellbore by tagging TD with coiled tubing, and performing a flowing PT survey to evaluate perforation contribution by sand. Well Information: Max Expected BHP 2206 psi (Based on max storage BHP) MPSP: 1985 psi (Based on BHP minus 0.1 psi/ft gas grad. @ 4956’ TVD) Total Depth: 9661’ MD / 5164’ TVD Plug back depth: 9519’ CTM (Landing Collar) Gross Perf Interval 7710’ – 9560’ MD Fish 9513’ Tractor, Spent Gun (52’ OAL) Minimum ID 4.75” / 173’ SVLN Protection Sleeve / Tubing Recent History: 2024-02-22 CT FCO to 9525’ 2022-09-09 CT FCO to 8500’ Pre-Sundry Steps: 1. MIRU Slickline, PT lubricator to 2000 psi. 2. Pull WR-SSSV from hydraulic landing nipple at 173’. 3. Set protection sleeve. 4. RD Slickline. Coiled Tubing Procedure: 1. Provide AOGCC 24hrs notice for BOP test. 2. Review all approved COAs. 3. MIRU Fox Coiled Tubing with 2” or 1.75” coil. 4. RU BOPE, perform BOP test to 3000 psi. 5. MU tagging BHA: coil connector, check valve, ball drop disconnect, stabilizer bar, nozzle. 6. RIH to PBTD or depth coil tags on obstruction, POOH. 7. Place well on production, allow to stabilize. 8. MU memory logging BHA. 9. With well flowing log in hole to PBTD, log OOH. Post Coiled Tubing: 1. MIRU Slickline, PT lubricator to 2000 psi. 2. Pull protection sleeve from hydraulic landing nipple at 173’. 3. Set WRSSSV, function test. 4. RD Slickline, hand well to Operations. Attachments: 1. Current Wellbore Diagram 2. Coiled Tubing BOPE Diagram Well Head Rig Up 1 1 1 1 Hydraulic Stripper over/under 4 1/6" 10K 4 1/16" 15K Lubricator 5X or 6X - 10 ft bowen connectoin, 50' or 60' total as necessary for tool length 100" Gooseneck HR680 Injector Head 4 1/16" 10K Flow Cross, 2" 1502 10k Flanged Valves ϰϭͬϭϲΗƚŽƉĨůĂŶŐĞ ϭϱŬďŽǁĞŶ 4 1/16" 10K Combi BOPs Blind/Shear Ram Pipe/Slip Ram API Crossover flange to bowen10K to 15K API Flange Adapter 10K to 5K for riser/wellhead 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:Regg, James B (OGC) To:Stan Saner Cc:Matthew Federle Subject:RE: Well 1 SSSV replacement extension Date:Thursday, January 30, 2025 12:45:00 PM Attachments:image001.png CINGSA’s request is approved. If it appears the SSSV issue will not be resolved by February 8, please contact me. Also, just a reminder to notify when the SSSV is repaired/replaced for opportunity to witness a performance test. Jim Regg Supervisor, Inspections AOGCC 333 W. 7th Ave, Suite 100 Anchorage, AK 99501 907-793-1236 From: Stan Saner <Stan.Saner@enstarnaturalgas.com> Sent: Wednesday, January 29, 2025 4:46 PM To: Regg, James B (OGC) <jim.regg@alaska.gov> Cc: Matthew Federle <Matthew.Federle@enstarnaturalgas.com> Subject: Well 1 SSSV replacement extension This message was sent securely using Zix® Jim, As per our phone conversation this morning I am following up with an email. I am asking for an extension on the 14-day replacement and testing of the SSSV for Well #1. We have been trying for almost 2 weeks to get a wireline crew from Pollard to come in and swap the SSSV. We are now in a short cold snap and need Well 1 to meet customer demands. The SVS testing was conducted on January 18th, 14 days from original test will put us at this coming Saturday February 1st. The cold snap is supposed to ease early next week. I cannot get a solid date out of Pollard wireline for when they can be onsite at CINGSA to swap the SSSV on Well 1. I am requesting an extension until February 8th to swap the SSSV on Well #1. I am trying to get Pollard on site before then to do the swap. Thank you for your time and consideration on this matter. $BOOFSZ-PPQ6OJU4 15% Stan Saner CINGSA Supervisor 1377 Beaver Loop Road Kenai, AK 99611 Desk Phone: 907-714-7582 Cell Phone: 907-398-0836 This message was secured by Zix®. MEMORANDUM State of Alaska Alaska Oil and Gas Conservation Commission DATE:Wednesday, June 12, 2024 SUBJECT:Mechanical Integrity Tests TO: FROM:Josh Hunt P.I. Supervisor Petroleum Inspector NON-CONFIDENTIAL Cook Inlet Natural Gas Storage Alaska, LLC S-1 CANNERY LOOP UNIT S-1 Jim Regg InspectorSrc: Reviewed By: P.I. Suprv Comm ________ JBR 06/12/2024 S-1 50-133-20600-00-00 211-149-0 G SPT 4882 2111490 1500 1327 1327 1327 1327 0 0 0 0 4YRTST P Josh Hunt 4/25/2024 Good test. 30 MinPretestInitial15 Min Well Name Type Test Notes: Interval P/F Well Permit Number: Type Inj TVD PTD Test psi API Well Number Inspector Name:CANNERY LOOP UNIT S-1 Inspection Date: Tubing OA Packer Depth 205 1818 1807 1803IA 45 Min 60 Min Rel Insp Num: Insp Num:mitJDH240425175315 BBL Pumped:2.6 BBL Returned:2.6 Wednesday, June 12, 2024 Page 1 of 1           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. Some people who received this message don't often get email from colsen@asrcenergy.com. Learn why this isimportant From:Brooks, Phoebe L (OGC) To:Olsen, Clark Cc:Regg, James B (OGC) Subject:RE: 10-424 BOP test report - Fox CTU - CINGSA CLUS-1 - 02-21-2024 Date:Thursday, March 21, 2024 2:46:04 PM Attachments:Fox 8 02-21-24 Revised.xlsx image001.png Clark, Attached is a revised report changing the MASP to reflect 1691 per sundry 324-050. Phoebe Brooks Research Analyst Alaska Oil and Gas Conservation Commission Phone: 907-793-1242 CONFIDENTIALITY NOTICE: This e-mail message, including any attachments, contains information from the Alaska Oil and Gas Conservation Commission (AOGCC), State of Alaska and is for the sole use of the intended recipient(s). It may contain confidential and/or privileged information. The unauthorized review, use or disclosure of such information may violate state or federal law. If you are an unintended recipient of this e-mail, please delete it, without first saving or forwarding it, and, so that the AOGCC is aware of the mistake in sending it to you, contact Phoebe Brooks at 907-793-1242 or phoebe.brooks@alaska.gov. From: Olsen, Clark <colsen@asrcenergy.com> Sent: Saturday, February 24, 2024 7:29 PM To: Regg, James B (OGC) <jim.regg@alaska.gov>; DOA AOGCC Prudhoe Bay <doa.aogcc.prudhoe.bay@alaska.gov>; Brooks, Phoebe L (OGC) <phoebe.brooks@alaska.gov> Cc: Olsen, Clark <colsen@asrcenergy.com> Subject: 10-424 BOP test report - Fox CTU - CINGSA CLUS-1 - 02-21-2024 Hi, Find attached the 10-424 BOP test report for Fox CTU - CINGSA CLUS -1, conducted on 2/21/2024. Thank you, Clark Olsen Well Site Leader ASRC Energy Services, Inc. Cannery Loop Unit S-01 PTD 2111490 J. Regg; 4/1/2024 colsen@asrcenergy.com Cell: 907-252-2248 STATE OF ALASKA OIL AND GAS CONSERVATION COMMISSION *All BOPE reports are due to the agency within 5 days of testing* Submit to:jim.regg@alaska.gov; AOGCC.Inspectors@alaska.gov; phoebe.brooks@alaska.gov Rig Owner:Rig No.:8 DATE:2/21/24 Rig Rep.:Rig Email: Operator: Operator Rep.:Op. Rep Email: Well Name:PTD #2111490 Sundry #324-050 Operation:Drilling:Workover:X Explor.: Test:Initial:X Weekly:Bi-Weekly:Other: Rams:250/3500 Annular:Valves:250/3500 MASP:1691 MISC. INSPECTIONS:TEST DATA FLOOR SAFETY VALVES: Test Result/Type Test Result Quantity Test Result Housekeeping P Well Sign P Upper Kelly 0 NA Permit On Location P Hazard Sec.P Lower Kelly 0 NA Standing Order Posted P Misc.NA Ball Type 0 NA Test Fluid Other Inside BOP 0 NA FSV Misc 0 NA BOP STACK:Quantity Size/Type Test Result MUD SYSTEM:Visual Alarm Stripper 1 1.75 P Trip Tank NA NA Annular Preventer 0 NA NA Pit Level Indicators NA NA #1 Rams 1 1.75" B/S P Flow Indicator NA NA #2 Rams 1 1.75" P/S P Meth Gas Detector NA NA #3 Rams 0 NA NA H2S Gas Detector NA NA #4 Rams 0 NA NA MS Misc 0 NA #5 Rams 0 NA NA #6 Rams 0 NA NA ACCUMULATOR SYSTEM: Choke Ln. Valves 2 2"P Time/Pressure Test Result HCR Valves 0 NA NA System Pressure (psi)2950 P Kill Line Valves 2 2"P Pressure After Closure (psi)2300 P Check Valve 0 NA NA 200 psi Attained (sec)4 P BOP Misc 0 NA NA Full Pressure Attained (sec)14 P Blind Switch Covers:All stations Yes CHOKE MANIFOLD:Bottle Precharge:P Quantity Test Result Nitgn. Bottles # & psi (Avg.):NA NA No. Valves 5 P ACC Misc 0 P Manual Chokes 2 P Hydraulic Chokes 0 NA Control System Response Time:Time (sec)Test Result CH Misc 0 NA Annular Preventer 0 NA #1 Rams 27 P Coiled Tubing Only:#2 Rams 25 P Inside Reel valves 1 P #3 Rams 0 NA #4 Rams 0 NA Test Results #5 Rams 0 NA #6 Rams 0 NA Number of Failures:0 Test Time:3.0 HCR Choke 0 NA Repair or replacement of equipment will be made within NA days. HCR Kill 0 NA Remarks: AOGCC Inspection 24 hr Notice Yes Date/Time 02/20/2024 @07:55 Waived By Test Start Date/Time:2/21/2024 15:00 (date)(time)Witness Test Finish Date/Time:2/21/2024 18:00 BOPE Test Report Notify the AOGCC of repairs with written confirmation to: AOGCC.Inspectors@alaska.gov Jim Regg Fox Accumulator precharge pressure 1400 psi, 4 x 11gal. Personnel had H2S monitors and a hand held H2S and 4-Gas monitor for the return tanks. Jeremy Hart CINGSA Clark Olsen CLU S-1 Test Pressure (psi): Trais@foxAK.com colsen@asrcenergy.com Form 10-424 (Revised 08/2022)2024-0221_BOP_Fox8_CLU_S-01          jbr J. Regg; 4/1/2024 Clark Olsen ASRC Consulting & Environmental Services, LLC Well Site Leader (907) 252-2248 colsen@asrcenergy.com 1 March 25, 2024 Alaska Oil and Gas Conservation Commission Natural Resource Technician 333 W 7th Ave, Suite 100 Anchorage, Alaska 99501 RE: DATA TRANSMITTAL - WELL: CINGSA CLU S-1 PTD: 211-149 API: 50-133-20600-00-00 Initial Data Transmittal of x Sigma Analysis using RMT3D – 03/12/2024 x RMT3D Processed Log LAS file – 03/12/2024 Data Transfer Folder: CINGSA Well Logs Subfolders: 211-149 CLU Storage 1 Please acknowledge receipt by signing and returning one copy of this transmittal. Received By: Date: 211-149 T38671 Meredith Guhl Digitally signed by Meredith Guhl Date: 2024.03.26 13:15:05 -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 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 feet feet true vertical feet feet Effective Depth measured feet feet true vertical feet feet Perforation depth Measured depth feet True Vertical depth feet Tubing (size, grade, measured and true vertical depth) Packers and SSSV (type, measured and true vertical depth) 12. Stimulation or cement squeeze summary: Intervals treated (measured): Treatment descriptions including volumes used and final pressure: 13a. Prior to well operation: Subsequent to operation: 13b. Pools active after work: 15. Well Class after work: Daily Report of Well Operations Exploratory Development Service Stratigraphic Copies of Logs and Surveys Run 16. Well Status after work: Oil Gas WDSPL Electronic Fracture Stimulation Data GSTOR GINJ SUSP SPLUG Sundry Number or N/A if C.O. Exempt: Authorized Name and Digital Signature with Date: Contact Name: Contact Email: Authorized Title:Contact Phone: Burst Collapse Production Liner Casing Structural Conductor Surface Intermediate measured TVD Plugs Junk measured Length STATE OF ALASKA ALASKA OIL AND GAS CONSERVATION COMMISSION REPORT OF SUNDRY WELL OPERATIONS 5. Permit to Drill Number:2. Operator Name 4. Well Class Before Work: measured true vertical Packer Representative Daily Average Production or Injection Data Casing Pressure Tubing Pressure Size 17. I hereby certify that the foregoing is true and correct to the best of my knowledge. 3. Address: 14. Attachments (required per 20 AAC 25.070, 25.071, & 25.283) Gas-Mcf MD Sr Pet Eng: Sr Pet Geo: Sr Res Eng: WINJ WAG Water-BblOil-Bbl p k ft t Fra O s O 6.A G L PG , C Form 10-404 Revised 10/2022 Due Within 30 days of Operations Submit in PDF format to aogcc.permitting@alaska.gov Cannery Loop / Sterling &Gas Storage Pool Cannery Loop / Sterling &Gas Storage Pool psi psi Cook Inlet Natural Gas Storage Alaska, LLC. 211149 50-133-20600-00-00 ADL0230925, ADL0391627 CLU Storage 1 9,661' 5,164' 9,513 8,608 5,089' 7,343' 4,882' 115.5' 20" 115.5' 115.5' 2,956' 13 3/8" 2,956' 2,643' 3,450 1,950 7,563' 9 5/8" 7,563' 4,932' 5,750 3,090 2,316' 7" 9,659' 5,164' 7,240 5,410 7,710' - 9,560' 4,956' - 5,154' 7" 26# L-80 7,343' 4,882' BKR 9 5/8" ZXP LTP Type text here Type text here HES 7" FXE SSSV 7343' PKR / 173' SSSV N/A Clark Olsen colsen@asrcenergy.com 907-252-2248 2/22/2024 - CTU N2 FCO-FCO to 9525' CTM - 260 bbls pumped - 115% recovered/ 3 bbls Solids to surface / 1480 WHP 324-050 PO Box 190989 Anchorage, AK 99519 4882' PKR / 173' SSSV 24.63 MMCF 1250 19.22 MMCF 1300 psi By Grace Christianson at 2:49 pm, Mar 20, 2024 Matthew Federle Digitally signed by Matthew Federle Date: 2024.03.20 13:06:46 -08'00' RBDMS JSB 032824 DSR-3/21/24 Well Work Log Date Description DS-Well 2/21/2024 CTU FCO CLU S-1 SSSV Pulled SSSV Pulled Ser. No. SSSV Ran SSSV Ran Ser. No Tbg/TT Sizes YES -2/19/2024 7" Recoverable Diesel Non-Recov. Diesel Carrier Ran Carrier Ser. No. SSSV Nipple N/A N/A 5.963" - 173' MD FTP/ITP 9 5/8" PSI 13 3/8" PSI SITP Min. Rest./ Depth N/A 0 psi 0 psi N/A 5.88" / RN - 7366' MD SSSV Information Tubular or Casing Problems Sleeve installed Fish - 9513' MD Cost Estimate #1 Cost Estimate #2 Cost Estimate #3 Cost Estimate #4 Cost Estimate #5 Fox Cruz Cruz CTU Trucking Crane AFE No. CC # Class Activity Tagged PBTD Time Log Entry 9:30 Fox on location - Safety / LOTO / HWP / WHO/JSA/ Lifting 10:00 RD BOP's all equipment from CLU S-3 / Secure well / hand back over to Ops for Pollard to Set SSSV on CLU S-3 10:15 MIRU FOX CTU #8 (Jeremy/Landry) 13,723' of 1.75" CT / .134" wall / 1.32 mrft / 29.3 BBLS 10:30 RU on CLU S-1 / Spot Equipment / N2 / Pumper / Batch mixer / Vac trucks pulling fluids from T-Tank on CLU-S-3 11:00 Jim Regg AOGCC waived state witness 12:00 Bleed Injection line at Tree Cap, prepare to remove Tree Cap Flange 12:30 7" Tree Cap Flange removed / Pick up BOP's install on tree 13:00 BOP's Flanged up / Triplex ready with 60/40 Meth - 4250 psi PSV - prep to fill Iron and BOP's 14:00 BOP's - Iron Fluid packed 14:30 Working air out of system 14:45 Open Filter Pod, check fliters / CO Socks - Sludge / Close Filter pod / 5 micron cartride w/ socks 15:00 Close Blinds (27 seconds) / Close Choke valve 1/2/3 / Inner Reel for Test #1 per Fox BOP Procedure- 15:10 PT #1 Low test - Blinds closed / Inner Reel / Choke valve 1/2/3 - 250 psi 5 min, - Slight leaking - Tree, valves? 15:15 PT #1 Low test - Blinds closed / Inner Reel / Choke valve 1/2/3 - 265 psi 5 min 15:23 PT #1 High Test Good - 5 min - 3702 psi psi- 15:33 PT #2 Low Test Good - 5 min - 350 psi - Choke-3/4/5 closed / Blind / Inner Reel - High Test Good 5 min - 3763 psi 15:56 PT #3 Low Test Good - 5 min - 292psi - Outer Flow Cross Valves / Blinds /Pipes-(25 sec) Inner Reel - High Test Good 5 min - 3727 16:25 PT #4 Low Test Good - 5 min - 320 psi - Inner Flow Cross Valves / Blinds / Inner Reel - High Test Good 5 min - 3659 psi 17:00 RD Triplex - equipment - Secure location / Well handover to Ops - 17:15 Off Location - return in morning for completion of BOP test, CTU - FCO Signed Page No. of Clark Olsen 1 1 Well Work Log Date Description DS-Well 2/22/2024 CTU FCO CLU S-1 SSSV Pulled SSSV Pulled Ser. No. SSSV Ran SSSV Ran Ser. No Tbg/TT Sizes YES -2/19/2024 7" Recoverable Diesel Non-Recov. Diesel Carrier Ran Carrier Ser. No. SSSV Nipple N/A N/A 5.963" - 173' MD FTP/ITP 9 5/8" PSI 13 3/8" PSI SITP Min. Rest./ Depth N/A 0 psi 0 psi N/A 5.88" / RN - 7366' MD SSSV Information Tubular or Casing Problems Sleeve installed Fish - 9513' MD Cost Estimate #1 Cost Estimate #2 Cost Estimate #3 Cost Estimate #4 Cost Estimate #5 Fox Cruz Cruz CTU Trucking Crane AFE No. CC # Class Activity Tagged PBTD Time Log Entry 07:00 Safety with CINGSA / Fox / Cruz - 10 total - Well Handover / LOTO / HWP / JSA / Environmental discussions/ Winds at 10-15 mph 08:00 MIRU FOX CTU #8 (Jeremy Hart) 13,723' of 1.75" CT / .134" wall / 1.33 mrft / 29.3 BBLS 08:15 Bleed - Remove tree cap / IA - 200 psi / OA - zero / 3450 psi on the SSSV panel / Manlift Max Wind rating 28 mph 08:20 BOP's had 1000 psi on stack - Tree valves Leak-Pack offs changed out (Primary) Pick Injector / Lubricator , MU test BHA 08:30 Load of Water arrives / N2 Transport arrives 08:50 Stab Injector onto BOP's on Well - Slip test on Pipe 5k up/down good 09:15 Off well inspect pipe, good - Back to well for flooding fluid lines, prep for BOP #5 per Fox 09:30 Bring 60* fresh water on to Batch / 6% KCL - ~ 80 bbls / two pods - 240 bbls Water on location / N2 pumper filled/ 10:45 Fill Coil with 30 bbls 6% KCL, returns to tank 11:00 MU BHA - CR-2" OD - 1.83" / DCV's - 2.13" OD - 13" / Mandrel stinger - 2.13" - 58"/ 3.5" OD JSN - 6" / OAL= 78.83" - 6.57' 11:05 Back on Well, prepare for #5 PT per Fox - Close Choke vlv's 3,4,5- Stripper / Lubricator check / DCV's 11:10 Vac truck w / 95 bbls FW - sting on Biocide -8gal per CINGSA, push to upright / 20 gals DeFoamer - preload in T-Tank 11:11 PT- #5 - Low - 258 psi / High 3645 psi - Good / 11:30 Open well 1436 psi SITP / SSSV panel 2800 psi - RIH 12:05 2700' CTM / 8k RIW / WHP-1540 psi / CTP-20psi / RIH at 80 fpm / Cool down N2 pump 12:15 3000' CTM / 12k up - 7k riw / WHP-1543 psi / CTP-23 psi 12:30 4000' CTM / 9k riw / 1540 WHP / CTP - 23 psi 12:50 N2 online - 600 scf / 5700' CTM / Crack choke/ WHP-1540 psi / FRW-1gpt / Foam-2.1gpt/Defoam-20gal preload to tank 12:58 6000' CTM / 1000 scf / 0.8 bpm w/FRW-Foamer - 50Q / WHP-1500 psi / CTP-2000psi/ PUH - 19k- circ reel fluid to tank 13:20 5700' CTM / 1000 scf / 0.8 bpm / WHP- 1375 psi / CTP- 3000 psi / 20-30 fpm-circ reel fluid to surface / wind swirling - monitor 13:27 5350' CTM / 1200 scf / 0.8 bpm / WHP - 1320 psi / CTP - 3500 psi / monitor winds - LEL at tank / 0 at Batch mixer 13:45 5100' CTM / 1200 scf / 0.8 bpm / WHP - 1200 psi / CTP - 3580 psi / 13:50 5000' CTM / 1200 scf / 0.8 bpm / WHP - 1125 psi / CTP - 3440 psi / RBIH / Fluids at tank 14:00 5400' CTM / 1400 scf / 0.9 bpm / WHP - 1100 psi / CTP - 4050 psi / ~ 70Q foam / RIW - 2-4k - packoffs? 14:25 7000' CTM / 1400 scf / 0.9 bpm / WHP - 1255 psi / CTP - 4200 psi / 8-10 k RIW 14:40 7500' CTM / WHP - 1215 psi / CTP - 3650 psi / Wtck - 20k 14:50 7730' CTM / WHP - 1100 psi / CTP- 3600 psi / 20 fpm - into top Perf interval / 14:55 7875' CTM / WHP - 1150 psi / CTP - 3645 psi / PUH-18k - through first Perf interval / 55 bbls of returns 15:00 7680' CTM / WHP - 1115 psi / CTP - 3900 psi / RBIH - 2-8k / well unloading / Packoffs? Weight inconsistant - lube 15:15 8226' CTM / WHP - 1100 psi / CTP - 3650 psi / through second Perf interval / PUH - 21k to above Perfs 15:30 7600' CTM / WHP - 1085 psi / CTP - 3625 psi / Good fluid returns-Foam / RBIH - 2-8k / monitor winds-LEL's 15:40 8200' CTM / WHP - 1100 psi / CTP - 3550 psi / into 3rd Perf interval / 100 bbls T-Tank / 161 bbls pumped/ need ETA N2 Transport 15:53 8557' CTM / WHP - 1155 psi / CTP - 3550 psi / below 3rd Perf interval / PUH-21k / 220kscf / 1x1 returns at Tiger per strap Signed Page No. of Clark Olsen 1 1 Well Work Log Date Description DS-Well 2/22/2024 CTU FCO CLU S-1 Time Log Entry 16:00 8230' CTM / WHP - 1130 psi / CTP - 3780 psi / RBIH - 1-8k RIW - Wt-Cell - P-Offs ? / good returns 16:19 9000' CTM / WHP - 1150 psi / CTP - 4120 psi / PUH - 22k - loading up - good returns / ETA N2-may not arrive in time 16:28 8800' CTM / WHP - 1155 psi / CTP - 4020 psi / RIH - 1-8 kRIW / Fluid at tank / N2 concerns 16:40 9300' CTM / WHP - 1075 psi / CTP - 3450 / PUH - 22k / RBIH - 2-8k/ 168 bbls in Tank / 186 bbls pumped / 16:50 9520' CTM / WHP - 1080 psi / CTP - 3300 psi / PUH - 22k / Did not Tag Fish - PUH 16:55 9450' CTM / WHP - 1120 psi / CTP - 3300 psi / RBIH - 10k / Return to bottom 17:00 9525' CTM / WHP - 1100 psi / CTP - 3280 psi / Deepest Depth FCO / POOH - 22k at 50% / 17:07 9200' CTM / WHP - 1050 psi / CTP - 3200 psi / 1200 scf- / 0.8 bpm / reduced rate / ~35 fpm/N2 concerns 17:30 8200' CTM / WHP - 1150 psi/CT-2800 psi /20k Upwt/Shut down Fluid Pump (260 bbls total) N2 will be at JSN at Top Perf 17:45 7500' CTM / WHP-1150 psi / CT-2070 psi/19k Up / N2 at JSN Top Perf / Blowing well dry / N2 Transport on Location-Transfer 17:58 7250' CTM / WHP-1175 psi / CT-2150 psi / Well loading-Kick up N2-1500 scf / PUH at 40 fpm-blowing well down 18:25 6050' CTM / WHP-1300 psi / CT-2000 psi / Pinch choke - Misting-predominatly gas-N2 - reduce N2-1200 scf 19:15 3300' CTM / WHP - 1375 psi/CTP-2000 psi / Step N2 down from 1200 scf 19:40 2400' CTM / WHP-1400 psi / CTP - 1800psi / N2 Down / POOH - Good fluid slugs last 2-3000' 20:20 Bump Up / WHP - 1480 psi / Choke closed / IA-230 psi / OAP-0/ start Rig Down. 21:00 Rig back Injector / Night cap - Shut Blinds / Secure location. Return in morning for final rig down. 299 bbls of returns / 260 bbls fluid pumped - (39 bbls from well) Rig Down on Friday 23rd 07:00 to 11:00 Materials - 3 pallets-KCL / 20 gals-Foamer / 20 gals-DeFoamer / 3 gals FRW / 5774 gals N2-/ 3000 gals N2 remains in Pump-Trans Summary - CTU FCO with Foam - made two passes of lower Perf Interval - 9525' CTM Deepest Depth - Did not tag Fish - Pooh - N2 from top of perfs chasing Foam, solids OOH. Well evacuated. 299 bbls of returns / 260 bbls fluid pumped - (39 bbls from well) 3 bbls of Solids, Silt in T-Tank, Sample to CINGSA - Signed Page No. of Clark Olsen 2 1 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:Olsen, Clark To:Regg, James B (OGC); DOA AOGCC Prudhoe Bay; Brooks, Phoebe L (OGC) Cc:Olsen, Clark Subject:10-424 BOP test report - Fox CTU - CINGSA CLUS-1 - 02-21-2024 Date:Saturday, February 24, 2024 7:29:51 PM Attachments:image001.png 10-424(1) BOP test report AOGCC.xlsx Some people who received this message don't often get email from colsen@asrcenergy.com. Learn why this is important Hi, Find attached the 10-424 BOP test report for Fox CTU - CINGSA CLUS -1, conducted on 2/21/2024. Thank you, Clark Olsen Well Site Leader ASRC Energy Services, Inc. colsen@asrcenergy.com Cell: 907-252-2248 &DQQHU\/RRS8QLW6 37' STATE OF ALASKA OIL AND GAS CONSERVATION COMMISSION *All BOPE reports are due to the agency within 5 days of testing* SSu b mit t o :jim.regg@alaska.gov; AOGCC.Inspectors@alaska.gov; phoebe.brooks@alaska.gov Rig Owner: Rig No.:8 DATE: 2/21/24 Rig Rep.: Rig Email: Operator: Operator Rep.: Op. Rep Email: Well Name: PTD #22111490 Sundry #324-050 Operation: Drilling: Workover: X Explor.: Test: Initial: X Weekly: Bi-Weekly: Other: Rams:250/3500 Annular:N/A Valves:250/3500 MASP:1410 MISC. INSPECTIONS: TEST DATA FLOOR SAFETY VALVES: Test Result/Type Test Result Quantity Test Result Housekeeping P Well Sign P Upper Kelly 0NA Permit On Location P Hazard Sec.P Lower Kelly 0NA Standing Order Posted P Misc.NA Ball Type 0NA Test Fluid Other Inside BOP 0NA FSV Misc 0NA BOP STACK:Quantity Size/Type Test Result MUD SYSTEM:Visual Alarm Stripper 1 1.75 P Trip Tank NA NA Annular Preventer 0 NA NA Pit Level Indicators NA NA #1 Rams 1 1.75" B/S P Flow Indicator NA NA #2 Rams 1 1.75" P/S P Meth Gas Detector NA NA #3 Rams 0 NA NA H2S Gas Detector NA NA #4 Rams 0 NA NA MS Misc 0NA #5 Rams 0 NA NA #6 Rams 0 NA NA ACCUMULATOR SYSTEM: Choke Ln. Valves 2 2"P Time/Pressure Test Result HCR Valves 0 NA NA System Pressure (psi)2950 P Kill Line Valves 2 2"P Pressure After Closure (psi)2300 P Check Valve 0 NA NA 200 psi Attained (sec)4 P BOP Misc 0 NA NA Full Pressure Attained (sec)14 P Blind Switch Covers: All stations Yes CHOKE MANIFOLD:Bottle Precharge:P Quantity Test Result Nitgn. Bottles # & psi (Avg.): NA NA No. Valves 5P ACC Misc 0P Manual Chokes 2P Hydraulic Chokes 0NA Control System Response Time:Time (sec) Test Result CH Misc 0NA Annular Preventer NA NA #1 Rams 27 P Coiled Tubing Only:#2 Rams 25 P Inside Reel valves 1P #3 Rams NA NA #4 Rams NA NA Test Results #5 Rams NA NA #6 Rams NA NA Number of Failures:0 Test Time:3.0 HCR Choke NA NA Repair or replacement of equipment will be made within NA days. HCR Kill NA NA Remarks: AOGCC Inspection 24 hr Notice Yes Date/Time 02/20/2024 @07:55 Waived By Test Start Date/Time:2/21/2024 15:00 (date) (time)Witness Test Finish Date/Time:2/21/2024 18:00 BOPE Test Report Notify the AOGCC of repairs with written confirmation to: AOGCC.Inspectors@alaska.gov Jim Regg Fox Accumulator precharge pressure 1400 psi, 4 x 11gal. Personnel had H2S monitors and a hand held H2S and 4-Gas monitor for the return tanks. Jeremy Hart CINGSA Clark Olsen CLU S-1 Test Pressure (psi): Trais@foxAK.com colsen@asrcenergy.com Form 10-424 (Revised 08/2022)2024-0221_BOP_Fox8_CLU_S-1 9 9 9 9 9 9 999 9 9 MEU -5HJJ 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: ______CT N2 FCO_______ 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: Cannery Loop / Sterling Gas Storage Pool 11. Total Depth MD (ft): Total Depth TVD (ft): Effective Depth MD: Effective Depth TVD: Junk (MD): 9,661' 5,164' 8,608' 5,089' None 9,513' Casing Collapse Structural Conductor Surface 1,950 Intermediate 3,090 Production Liner 5,410 Packers and SSSV Type: Packers and SSSV MD (ft) and TVD (ft): Baker 7x9 5/8" ZXP LTP, HES 7" WL FXE SSSV Packer-7,343'MD/4,882 TVD; SSSV- 173' MD/ 173' TVD 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: Clark Olsen Contact Email: Contact Phone: 907-252-2248 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 CLU Storage 1 1691 colsen@asrcenergy.com Feburary 22, 2024 9,659'2,316' 7" 26# 5,164' 7,563' 2,956' Perforation Depth MD (ft): 7,563' see attached WBS 7" See attached WBS 115.5' 2,956' 20" 13 3/8" 115.5' 9 5/8"5,750 3,450 115.5' 2,643' 4,932' Size Proposed Pools: L80 TVD Burst 7,343' MD STATE OF ALASKA ALASKA OIL AND GAS CONSERVATION COMMISSION APPLICATION FOR SUNDRY APPROVALS 20 AAC 25.280 ADL0230925, ADL0391627 211149 P.O. Box 190989 Anchorage, AK 99519 50-133-20600-00-00 Cook Inlet Natural Gas Storage Alaska, LLC. N/A AOGCC USE ONLY 7,240 Tubing Grade: Tubing MD (ft):Perforation Depth TVD (ft): Subsequent Form Required: Suspension Expiration Date: Will perfs require a spacing exception due to property boundaries? Current Pools: MPSP (psi): Plugs (MD): 17. I hereby certify that the foregoing is true and the procedure approved herein will not be deviated from without prior writte n approval. Authorized Name and Digital Signature with Date: Tubing Size: PRESENT WELL CONDITION SUMMARY Length m n P 66 t ________ N Form 10-403 Revised 06/2023 Approved application valid for 12 months from date of approval.Submit PDF to aogcc.permitting@alaska.gov By Samantha Coldiron at 4:12 pm, Feb 05, 2024 324-050 Matthew Federle Digitally signed by Matthew Federle Date: 2024.02.05 13:09:07 -09'00' X SFD 2/7/2024 10-404 CT BOP test to 3500 psi DSR-2/13/24BJM 2/16/24 CLU Storage 1 *&:JLC 2/16/2024 Brett W. Huber, Sr. Digitally signed by Brett W. Huber, Sr. Date: 2024.02.16 17:31:19 -06'00'02/16/24 RBDMS JSB 022024 OUR PURPOSE: TO FIND SUSTAINABLE SOLUTIONS FOR A SUSTAINABLE FUTURE ASRC Consulting & Environmental, LLC | 3900 C Street, Suite 601, Anchorage, Alaska 99503 | 907.339.6200 | asrcenergy.com Page 1 of 4 February 2, 2024 To: Matt Federle Director of CINGSA From: Clark Olsen / Doug Cismoski P.E. ASRC Consulting & Environmental Well:CLU S-1 API:50-133-20600-00-00 PTD: 211-149 Re: CT Foam Fill Clean Out Procedure General Information CLU-S-1 was drilled in late 2011 as a horizontal gas storage well in the northern end of the CLU Sterling-C reservoir. The first injection was in April of 2012. Objective The objective is to clean out to PBTD of CLU Storage #1 with foam and nitrogen utilizing 1.75” CT. Well Information Min ID: 5.88” ID RN nipple at 7,366’ Last Tag: CT FCO to 8,500’ on 09/09/22 Fluid Levels: Last fluid level shot 12/14/23 7,701’ Perforations: Top – 7,710’ MD / Bottom – 9,560’ MD Fish: 9513’ MD (Tractor Tool – 22’ with spent Perf gun – 30’) SSSV: 173’ MD 5.963” ID Pre- Job Site and Equipment Preparation - Will need to pull SSSV and set isolation sleeve prior to coil RU on well. - A loader and operator will need to be available to move the KCL around location. OUR PURPOSE: TO FIND SUSTAINABLE SOLUTIONS FOR A SUSTAINABLE FUTURE ASRC Consulting & Environmental, LLC | 3900 C Street, Suite 601, Anchorage, Alaska 99503 | 907.339.6200 | asrcenergy.com Page 2 of 4 CT Procedure 1. Hold safety meeting. a. Complete and review Hazard Risk Assessment. b. Review entire cleanout procedure, with applicable personnel, to ensure everyone understands work objectives and appropriate safety practices. c. Assign work teams and delegate responsibilities. 2. Confirm SSV panel has appropriate hydraulic pressure applied (Verify SSSV is OOH). Contact the Operator for assistance. 3. Install fusible cap on the SSV. 4. RU CTU. NU 4 1/16” BOPE. Full function test to 3500 psi. 5. MU BHA with coiled tubing connector (pull/pressure test), Straight bar, Check valve, 2 1/8” Nozzle. 6. Open well & RIH 7. At 2,000ft before estimated top of fill, begin cooling down N2 pump. 8. Reduce RIH speed to 50 fpm before estimated top of fill. 9. Begin pumping foamed fluid. 10.Monitor fluids recovered in return tank continually during operations. 11.If solid fill is tagged, penetrate fill 25 ft @ 2-3 fpm and perform wiper trips above perfs to ~7,000’. 12.Run in hole to top of fill and repeat step 11 reducing wiper trip depth 100 ft each time to prevent solids from accumulating. 13.Cleanout to TD and perform wiper trip to above top perf to ~7500’. Circulate 10min. 14.If strong solids returns were present during clean out skip to step 16. 15.If little to no solids in return were present during clean out, continue pumping foam. 16.RIH to TD Circulate an additional 10 minutes at TD. 17.Pull up hole to 1,300 ft and circulate out remaining swept fill. 18.Cut fluid and RIH jetting with nitrogen to jet well dry 19.Monitor fluids recovered in return tank continually during operations. 20.POOH once well jetting is complete. OUR PURPOSE: TO FIND SUSTAINABLE SOLUTIONS FOR A SUSTAINABLE FUTURE ASRC Consulting & Environmental, LLC | 3900 C Street, Suite 601, Anchorage, Alaska 99503 | 907.339.6200 | asrcenergy.com Page 3 of 4 OUR PURPOSE: TO FIND SUSTAINABLE SOLUTIONS FOR A SUSTAINABLE FUTURE ASRC Consulting & Environmental, LLC | 3900 C Street, Suite 601, Anchorage, Alaska 99503 | 907.339.6200 | asrcenergy.com Page 4 of 4 CINGSA General Safety & Well Procedure For Nitrogen Operations Safety/Awareness While Working With Nitrogen & Stop Work Authority To be reviewed prior to job with all personnel on location. x Hold Pre-job safety meetings to discuss nitrogen asphyxiation awareness and note areas in which nitrogen could accumulate and personnel can access. x Recognize tank location and wind direction. Be aware of weather forecast/changes in wind direction. x Make certain ALL work personnel are informed of Stop Work Authority. Safety Procedure While Working With Nitrogen 1. MIRU Nitrogen Pumping Unit and Liquid Nitrogen Transport. 2. Notify Pad Operator of upcoming nitrogen operations. 3. Hold pre-job safety meeting. Review vendor standard operating procedures, safety, and appropriate Safety Data Sheets for all materials on location. 4. Record risks and mitigations plans. Confirm flow paths and safety barriers are in place. NITROGEN DISPLACES OXYGEN. Make sure ALL personnel on location are aware of nitrogen asphyxiation causes and signs and identify emergency muster location. 5. Spot N2 pumping unit and transport. Record N2 volumes in transport. 6. Rig up flow lines from N2 pumping unit to the well and returns to frac tank. 7. Place signs and placards warning of high pressure and nitrogen operations on location where nitrogen could accumulate or be released. 8. Have pressure gauges downstream of liquid and nitrogen pumps to appropriately measure tubing and casing pressures. 9. Set pressure gauges upstream and downstream of any check valves. 10. Ensure valve positions are in correct position. 11. Confirm 4-gas detection is on location, calibrated and tested to detect H2S/CO2/LEL/O2 levels accurately. 12. Pressure test lines upstream of well to approved Sundry pressure or Maximum Potential Surface Pressure (MSPS) (whichever is greater). Pressure test lines downstream of well at or greater than MSPS. Visually inspect lines for any leaks. 13. Bleed off pressure and prepare for pumping nitrogen. 14. Pump nitrogen at desired rate, monitor rate and pressure. All nitrogen returns to be routed to frac tank. 15. Once desired nitrogen levels have been achieved, isolate well from nitrogen pump unit and bleed down lines between well and nitrogen pump unit. 16. Confirm lines are bled down, be aware of trapped pressure, and any accumulation of nitrogen. Once confirmed begin rigging down nitrogen pump unit. 17. Note final rates, pressures, and volumes from the job. Record remaining nitrogen in transport. 18. Demob nitrogen pumping unit and transport. CAUTION: This email originated from outside the State of Alaska mail system. Do not click links or open attachments unless you recognize the sender and know the content is safe. From:Olsen, Clark To:McLellan, Bryan J (OGC) Cc:Spence, Clinton Subject:RE: CINGSA CLU-S1 (PTd 211-149) MPSP Date:Wednesday, February 14, 2024 9:47:38 AM Attachments:image002.png Hi Bryan, Sorry for the delay. I talked to the CINGSA Supervisor, and he did a calculated BHP for the formation yesterday. They have an estimated average formation BHP of 1390 psi yesterday. Today’s information; CLU-S-1 is injecting at 1407 WHP, ~ 19 mmcfd. CLU – S-3 is currently static, not injecting with 1405 psi WHP. CLU-S-5 is currently shut in with 1335 SITP. We intend to Log this well with HES today. Well CLU-S-4 had a SITP of 1307 psi yesterday. TVD of Top Perf - CLU-S-1 is ~ 4950’ TVD With this information I would say that the predicted pressure would not be more than the ~1407 psi. Let me know if you have any questions, Thanks, Clark Clark Olsen Well Site Leader ASRC Energy Services, Inc. colsen@asrcenergy.com Cell: 907-252-2248 From: Olsen, Clark <colsen@asrcenergy.com> Sent: Tuesday, February 13, 2024 6:40 AM To: McLellan, Bryan J (OGC) <bryan.mclellan@alaska.gov> Cc: Spence, Clinton <cspence@asrcenergy.com> By Anne Prysunka at 12:54 pm, Oct 03, 2022 5HJJ-DPHV%2*& )URP%URRNV3KRHEH/2*& 6HQW)ULGD\2FWREHU30 7R36WHZDUW &F5HJJ-DPHV%2*& 6XEMHFW5()R[&78 $WWDFKPHQWV)R[5HYLVHG[OV[ ƚƚĂĐŚĞĚŝƐĂƌĞǀŝƐĞĚƌĞƉŽƌƚĐŚĂŶŐŝŶŐƚŚĞD^WƚŽϭϲϵϭ;ĂĐŽƵƉůĞŶƵŵďĞƌƐǁĞƌĞƚƌĂŶƐƉŽƐĞĚͿďĂƐĞĚŽŶWdηϮϭϭϭϰϵϬ͘ WůĞĂƐĞƵƉĚĂƚĞǇŽƵƌĐŽƉǇ͘ dŚĂŶŬǇŽƵ͕ WŚŽĞďĞ WŚŽĞďĞƌŽŽŬƐ ZĞƐĞĂƌĐŚŶĂůǇƐƚ ůĂƐŬĂKŝůĂŶĚ'ĂƐŽŶƐĞƌǀĂƚŝŽŶŽŵŵŝƐƐŝŽŶ WŚŽŶĞ͗ϵϬϳͲϳϵϯͲϭϮϰϮ KE&/Ed/>/dzEKd/͗dŚŝƐĞͲŵĂŝůŵĞƐƐĂŐĞ͕ŝŶĐůƵĚŝŶŐĂŶǇĂƚƚĂĐŚŵĞŶƚƐ͕ĐŽŶƚĂŝŶƐŝŶĨŽƌŵĂƚŝŽŶĨƌŽŵƚŚĞůĂƐŬĂKŝů ĂŶĚ'ĂƐŽŶƐĞƌǀĂƚŝŽŶŽŵŵŝƐƐŝŽŶ;K'Ϳ͕^ƚĂƚĞŽĨůĂƐŬĂĂŶĚŝƐĨŽƌƚŚĞƐŽůĞƵƐĞŽĨƚŚĞŝŶƚĞŶĚĞĚƌĞĐŝƉŝĞŶƚ;ƐͿ͘/ƚŵĂǇ ĐŽŶƚĂŝŶĐŽŶĨŝĚĞŶƚŝĂůĂŶĚͬŽƌƉƌŝǀŝůĞŐĞĚŝŶĨŽƌŵĂƚŝŽŶ͘dŚĞƵŶĂƵƚŚŽƌŝǌĞĚƌĞǀŝĞǁ͕ƵƐĞŽƌĚŝƐĐůŽƐƵƌĞŽĨƐƵĐŚŝŶĨŽƌŵĂƚŝŽŶŵĂǇ ǀŝŽůĂƚĞƐƚĂƚĞŽƌĨĞĚĞƌĂůůĂǁ͘/ĨǇŽƵĂƌĞĂŶƵŶŝŶƚĞŶĚĞĚƌĞĐŝƉŝĞŶƚŽĨƚŚŝƐĞͲŵĂŝů͕ƉůĞĂƐĞĚĞůĞƚĞŝƚ͕ǁŝƚŚŽƵƚĨŝƌƐƚƐĂǀŝŶŐŽƌ ĨŽƌǁĂƌĚŝŶŐŝƚ͕ĂŶĚ͕ƐŽƚŚĂƚƚŚĞK'ŝƐĂǁĂƌĞŽĨƚŚĞŵŝƐƚĂŬĞŝŶƐĞŶĚŝŶŐŝƚƚŽǇŽƵ͕ĐŽŶƚĂĐƚWŚŽĞďĞƌŽŽŬƐĂƚϵϬϳͲϳϵϯͲ ϭϮϰϮŽƌƉŚŽĞďĞ͘ďƌŽŽŬƐΛĂůĂƐŬĂ͘ŐŽǀ͘ ͲͲͲͲͲKƌŝŐŝŶĂůDĞƐƐĂŐĞͲͲͲͲͲ &ƌŽŵ͗W^ƚĞǁĂƌƚфƐƚĞǁĂƌƚƉϵϬϳΛŐŵĂŝů͘ĐŽŵх ^ĞŶƚ͗^ĂƚƵƌĚĂǇ͕^ĞƉƚĞŵďĞƌϭϬ͕ϮϬϮϮϳ͗ϯϮWD dŽ͗ZĞŐŐ͕:ĂŵĞƐ;K'Ϳфũŝŵ͘ƌĞŐŐΛĂůĂƐŬĂ͘ŐŽǀх͖KK'WƌƵĚŚŽĞĂǇфĚŽĂ͘ĂŽŐĐĐ͘ƉƌƵĚŚŽĞ͘ďĂǇΛĂůĂƐŬĂ͘ŐŽǀх͖ ƌŽŽŬƐ͕WŚŽĞďĞ>;K'ͿфƉŚŽĞďĞ͘ďƌŽŽŬƐΛĂůĂƐŬĂ͘ŐŽǀх ^ƵďũĞĐƚ͗&ŽǆϴdhϵͲϵͲϮϮ ΀^ŽŵĞƉĞŽƉůĞǁŚŽƌĞĐĞŝǀĞĚƚŚŝƐŵĞƐƐĂŐĞĚŽŶΖƚŽĨƚĞŶŐĞƚĞŵĂŝůĨƌŽŵƐƚĞǁĂƌƚƉϵϬϳΛŐŵĂŝů͘ĐŽŵ͘>ĞĂƌŶǁŚǇƚŚŝƐŝƐ ŝŵƉŽƌƚĂŶƚĂƚŚƚƚƉƐ͗ͬͬĂŬĂ͘ŵƐͬ>ĞĂƌŶďŽƵƚ^ĞŶĚĞƌ/ĚĞŶƚŝĨŝĐĂƚŝŽŶ΁ hd/KE͗dŚŝƐĞŵĂŝůŽƌŝŐŝŶĂƚĞĚĨƌŽŵŽƵƚƐŝĚĞƚŚĞ^ƚĂƚĞŽĨůĂƐŬĂŵĂŝůƐǇƐƚĞŵ͘ŽŶŽƚĐůŝĐŬůŝŶŬƐŽƌŽƉĞŶĂƚƚĂĐŚŵĞŶƚƐ ƵŶůĞƐƐǇŽƵƌĞĐŽŐŶŝǌĞƚŚĞƐĞŶĚĞƌĂŶĚŬŶŽǁƚŚĞĐŽŶƚĞŶƚŝƐƐĂĨĞ͘ 'ŽŽĚĞǀĞŶŝŶŐ͕ WůĞĂƐĞĨŝŶĚĂƚƚĂĐŚĞĚKWdĞƐƚZĞƉŽƌƚĨŽƌŽƵƌƌĞĐĞŶƚƚĞƐƚ͘ ZĞŐĂƌĚƐͲ WĂƚ^ƚĞǁĂƌƚ ϵϬϳͲϳϰϴͲϰϯϯϴ &DQQHU\/RRS6 37' ƌĞǀŝƐĞĚƌĞƉŽƌƚĐ D^WƚŽϭϲϵϭ STATE OF ALASKA OIL AND GAS CONSERVATION COMMISSION *All BOPE reports are due to the agency within 5 days of testing* SSu bm it t o :jim.regg@alaska.gov; AOGCC.Inspectors@alaska.gov; phoebe.brooks@alaska.gov Rig Owner: Rig No.:8 DATE: 9/9/2022 Rig Rep.: Rig Email: Operator: Operator Rep.: Op. Rep Email: Well Name:PTD #2111490 Sundry #322-517 Operation: Drilling: Workover: x Explor.: Test: Initial: x Weekly: Bi-Weekly: Other: Rams:250/3000 Annular: Valves:250/3000 MASP:1691 MISC. INSPECTIONS: TEST DATA FLOOR SAFETY VALVES: Test Result/Type Test Result Quantity Test Result Housekeeping P Well Sign P Upper Kelly 0NA Permit On Location P Hazard Sec.NA Lower Kelly 0NA Standing Order Posted P Misc.NA Ball Type 0NA Test Fluid Water Inside BOP 0NA FSV Misc 0NA BOP STACK:Quantity Size/Type Test Result MUD SYSTEM:Visual Alarm Stripper 1 1.75"P Trip Tank NA NA Annular Preventer 0NAPit Level Indicators NA NA #1 Rams 1 1.75" BS P Flow Indicator NA NA #2 Rams 1 1.75" PS P Meth Gas Detector NA NA #3 Rams 0NAH2S Gas Detector NA NA #4 Rams 0NAMS Misc 0NA #5 Rams 0NA #6 Rams 0NAACCUMULATOR SYSTEM: Choke Ln. Valves 2 2"P Time/Pressure Test Result HCR Valves 0NASystem Pressure (psi)3000 P Kill Line Valves 2 2"P Pressure After Closure (psi)2400 P Check Valve 0NA200 psi Attained (sec)4 P BOP Misc 0NAFull Pressure Attained (sec)11 P Blind Switch Covers: All stations YES CHOKE MANIFOLD:Bottle Precharge:P Quantity Test Result Nitgn. Bottles # & psi (Avg.): NA NA No. Valves 5P ACC Misc 0NA Manual Chokes 2P Hydraulic Chokes 0NA Control System Response Time:Time (sec) Test Result CH Misc 0NA Annular Preventer 0 NA #1 Rams 13 P Coiled Tubing Only:#2 Rams 11 P Inside Reel valves 1P #3 Rams 0 NA #4 Rams 0 NA Test Results #5 Rams 0 NA #6 Rams 0 NA Number of Failures:0 Test Time:3.0 HCR Choke 0 NA Repair or replacement of equipment will be made within days. HCR Kill 0 NA Remarks: AOGCC Inspection 24 hr Notice YES Date/Time 9/8/2022 / 1412 hr Waived By Test Start Date/Time:9/9/2022 8:30 (date) (time)Witness Test Finish Date/Time:9/9/2022 11:30 BOPE Test Report Notify the AOGCC of repairs with written confirmation to: AOGCC.Inspectors@alaska.gov Jim Regg Fox Accumulator system 4 bottles at 1400psi. 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Supervisor 11 / I FROM: Brian Bixby Petroleum Inspector NON -CONFIDENTIAL State of Alaska Alaska Oil and Gas Conservation Commission DATE: Friday, April 24, 2020 SUBJECT: Mechanical Integrity Tests Cook Inlet Natural Gas Storage Alaska, LLC S-1 CANNERY LOOP UNIT S-1 See: Inspector Reviewed By: fo P.I. Supry j7- rp te Comm Well Name CANNERY LOOP UNIT S-1 API Well Number 50-133-20600-00-00 Inspector Name: Brom Bixby Insp Num: mitBDB200423111527 Permit Number: 211-149-0 Inspection Date: 4/21/2020 Rel Insp Num: Packer Depth Pretest Initial 15 Min 30 Min 45 Min 60 Min Well S-1 .. Typelnj G 'TVD 4882 - Tubing 1111 1111 IH nio PTD 2111490 Type Test SPT Test psi 1500 IA 200 2100 - 2080 208o BBL Pumped: 2 BBL Returned: 2 OA 0 0 0- 0 Interval I 4YRTST 1PIF P I Notes: Friday, April 24, 2020 Page I of 1 • • MEMORANDUM State of Alaska Alaska Oil and Gas Conservation Commission TO: Jim Regg DATE: Wednesday,April 13,2016 (I v P.I.Supervisor 4 SUBJECT:Mechanical Integrity Tests COOK INLET NATURAL GAS STORAGE A S-1 FROM: Brian Bixby CANNERY LOOP UNIT S-1 Petroleum Inspector Src: Inspector Reviewed By: P.I.Suprve-- NON-CONFIDENTIAL Comm Well Name CANNERY LOOP UNIT S-1 API Well Number 50-133-20600-00-00 Inspector Name: Brian Bixby Permit Number: 211-149-0 Inspection Date: 4/5/2016 Insp Num: mitBDB160406110526 Rel Insp Num: Packer Depth Pretest Initial 15 Min 30 Min 45 Min 60 Min ------ ----- We 1531 - 1536 1537 - 1538- Well S 1 Type Inj G TVD 4882 Tubing PTD 2111490 - Type Test SPT Test psi 1500 - IA 395 2125 - 2115- 2105 - Interval 4YRTST P/F P ✓ OA o o - o - o - L — Notes: SCANNED SEP 2 7 2015 Wednesday,April 13,2016 Page 1 of 1 M O OO N O p o C a) C a) C cu C N C Cl) 6. �D N a) C a) C a3 C a) CO N } 1 Ca C a) a) NN a) CD a) CDC) M 2 co co o_Et 0,x n d' 0.a' n el r co O y A p U +>'EO V >,D U > U V] O O y '>U W -0 N >U N �U N y C C M C d N N U 'N to O a) Co W fn (a N V) O N Z Z 'fid " o2 CC 2 " O2 (Xo2 m o O c a) - o >. c o T "- O >, C O >. 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Operations Abandon U Repair Well U Plug Perforations Li Perforate U Other 4 Clean out fill Performed: Alter Casing ❑ Pull Tubing ❑ Stimulate - Frac ❑ Waiver ❑ Time Extension ❑ Change Approved Program ❑ Operat. Shutdown ❑ Stimulate - Other ❑ Re -enter Suspended Well ❑ 2. Operator 4. Well Class Before Work: 5. Permit to Drill Number: 211149 Name: - Cook Inlet Natural Gas Storage Alaska, LLC Development ❑ Exploratory ❑ 3. Address: Stratigraphic ❑ Service El 6. API Number: P.O. Box 190989, Anchorage, AK 99519 50- 133 - 20600 -0000 7. Property Designation (Lease Number): _ 8. Well Name and Number: ADL 391627 CLU Storage 1 9. Logs (List logs and submit electronic and printed data per 20AAC25.071): 10. Field /Pool(s): Perforation Record Cannery Loop / Sterling Gas Storage Pool 11. Present Well Condition Summary: Total Depth measured 9,661 feet Plugs measured none feet true vertical 5,164 feet Junk measured none feet Effective Depth measured 9,617 feet Packer measured 7,343 feet true vertical 5,160 feet true vertical 4,882 feet Casing Length Size MD TVD Burst Collapse Structural Conductor 115.5' 20" 115.5' 115.5' n/a n/a Surface 2,956' 133/8" 2,956' 2,643' 3,450 1,950 Intermediate 7,563' 9 5/8" 7,563' 4,932' 5,750 3,090 • Production Liner 2,316' 7" 9,659' 5,164' 7,240 5,410 Perforation depth Measured depth see attach. feet True Vertical depth see attach. feet ., t ,_ ' , Tubing (size, grade, measured and true vertical depth) 7" 26# L80 7,343' 4,882' Packers and SSSV (type, measured and true vertical depth) BHI 9 5/8" ZXPN Halliburton 7" FXE SSSV Pkr- 7,343' / 4,882' SSSV - 173' / 173' 12. Stimulation or cement squeeze summary: Intervals treated (measured): Treatment descriptions including volumes used and final pressure: Re- perforated per the attached schematic. 13. Representative Daily Average Production or Injection Data Oil -Bbl Gas -Mcf Water -Bbl Casing Pressure Tubing Pressure Prior to well operation: 12,000 450 725 Subsequent to operation: 28,400 550 850 14. Attachments: 15. Well Class after work: Copies of Logs and Surveys Run Perforation Record Exploratory El Development Li Service 0 Stratigraphic ❑ Daily Report of Well Operations 16. Well Status after work: Oil ❑ Gas ❑ WDSPL ❑ 7/12/2012 - 8/17/2012 GSTOR 0 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: 312250 and 312256 Contact �ck. CaonrleS Printed Name M , CO l Veen " C J( \ V.Oj Title v \C — Ps 000+ Signature 4,1.E a, Phone a 1 V — 1 3 ZZ Date C a 13D 1 tZ ✓L� / p Form 10 -404 Revised 11/201 Y1 ; AUG 312012 )73))1-1_- N"� C 4(( Submit Original Only • Cook Inlef Ruiural:Gas 3000 Spenard Road S TU RA An Box 190989 en � .« Anchorage, , AK AK 99519 -0989 � August 29, 2012 C le 406 Alaska Oil & Gas Conservation Commission q 0 ©JZ 333 W 7 Avenue, Suite 100 GCC: Anchorage, AK 99501 Re: Cook Inlet Natural Gas Storage Alaska, LLC (CINGSA) Report of Sundry Well Operations — Form 10 -404 CLU Storage 1 (Permit No. 211149) Attached, please find Report of Sundry Well Operations Form 10 -404 for CINGSA's CLU Storage 1, and associated Daily Report of Well Operations, well schematic, and perforation log. This well has been returned to injection service. If you have any questions concerning the foregoing, please contact Rick Gentges at 907 - 310 -7322. Sincerely, • 14,, frike,,t9e7tai-i-e-7 M. Colleen Starring Vice President Enclosure as stated • Date Operations Summary 7/12/2012 PJSM; RU Pollard and pull SSSV and set sleeve. 7/13/2012 Rig up lubricator and wireline BOP in prep for E -line perforating; 7/14/2012 MU tractor and 3 1/8" guns and PU lubricator; E -line parted and dropped gun tractor assembly. Lay down lubricator assembly and hold safety stand down; Secure well and SD. 7/15/2012 RU tractor and 30' gun, 3 1/8 ", 4 spf, 90 degree phasing and RIH. Attempt to tractor to TD; could not get deeper than 7820' due to fill. Decided to perforate 7795'- 7765'. POOH and lay down Gun #1. RIH with Gun # 2 and ("CA perforate 7765'- 7735'. POOH and Mama cleanout can be completed. , t Qc 8/2/2012 RU Weatherford flow lines to choke manifold and baffle tank in prep for coiled tubing cleanout. 8/3/2012 RU and mix 200 Bbls 6 % KCI and move in BJ coil unit. 8/4/2012 PJSM, topp off 200 Bbl tank, RU and function test flow line ESD, test coil unit BOP and related components to 250/4500 psi. Witness waived by Jim Regg. 8/5/2012 PJSM, and MU coil unit injector head to tree. RIH to 3500' and start pumping .35 Bpm and 500 scfm N2. Increase to .7 Bpm at 4500' and 1000 scfm N2 while RIH to 9596'. Circulate hole clean and flow back fluids with N2 only. Pumped 217 Bbls and recovered 277 Bbls. SD for day. 8/6/2012 BJ stripped off BOP, broke flow lines, rigged down and moved off location. Pollard and Welltech spotted equipment to resume perforating work. 8/7/2012 PJSM, and rigged up tractor and Gun #3, 30', 3 1/8 ", 4 spf, 90 degree phasing. RIH and perforate 9560 - 9530'. POOH and lay down spent guns. RIH with Gun # 4 and perforate 9530' - 9500'.. POOH and lay down spent guns. SD for day. 8/8/2012 PJSM, and rigged up tractor and Gun #5, 30', 3 1/8 ", 4 spf, 90 degree phasing. RIH and perforate 9435 - 9405'. POOH and lay down spent guns. RIH with GUS # 6 and perforate 8500'- 8470'. POOH and lay down spent guns. RIH with Gun # 7 and perforate 8470'- 8440'. POOH and lay down spent guns. SD for day. 8/9/2012 PJSM, and rigged up tractor and Gun # 8, 30', 3 1/8 ", 4 spf, 90 degree phasing. RIH and perforate 8440' - 8410'. POOH and lay down spent guns. RIH with Guii #9_ rforate 84_10 POOH and lay down spent guns. RIH with Gun # 10 andperforate 8380'- 8350'. POOH and lay down spent guns. RIftwit_h Gun# 11 and perforate83 50' 7 8320'. POOH and lay down spent guns. SD for day. 8/10/2012 PJSM, and rigged up tractor and Gun # 12, 30', 3 1/8 ", 4 spf, 90 degree phasing. RIH a_nd 8300' - 8270 POOH and lay down spent guns. RIH with Gun # 13 and perforate 8770 8240'... POOH and lay down spent guns. RIH with Gin__ 14 and perforate 8205 8175'. POOH and lay down spent guns. SD for day. • • 8/11/2012 PJSM, and rigged up tractor and Gun # 15, 30', 3 1/8 ", 4 spf, 90 degree phasing. RIH and perforate 8175'- 8145'. Tried to pull up; guns stuck. Required 1000 Ib. overpull to break free. Pulled up to 7330'; tools will not pass RN nipple profile. Worked tools /tractor up and down hole to 7550' several times; could tractor down but tools would not pass above 7330'. Bottom perf gun acts like it split open or perf carrot is preventing clearance through RN nipple profile at 7366'. Pulled 5100 Ibs and out of rope socket. Left tractor tool (22') and 30' of spent perf guns in hole. Top of fish at approximately 7318'. POOH and SD for day. 8/12/2012 PJSM: Move in BJ coil and RU over well. CaII AOGCC for BOP test; Bob Noble waived witness. Test BOP to 250/4500 psi; test good. Mix up 200 Bbls of 6% KCI. 8/13/2012 PJSM and rig up Weatherford flow lines and choke manifold and test all flow lines. Start coil operations; RIH to 5000' and begin pumping .7 Bbl/min and 500 scfm N2. RIH and tag top of fish at 7305' CTM. Work coil up and down with 1K down to break fish free. Pushed top of fish to 9513'. Switched over C(. to foam and 1000 scfm to unload hole. Pumped 117 Bbls and recovered 125 Bbls. SD for day. 8/14/2012 PJSM: rig down coil and Weatherford flow lines. Move in and RU Pollard and Welltech to resume perforating. MU Gun # 16, 30', 3 1/8 ", 4 spf, 90 degree phasing. RIH and perforate 8120' - 8090'. POOH and lay down spent guns. SD for day. 8/15/2012 PJSM, and rigged up tractor and Gun # 17, 30', 3 1/8 ", 4 spf, 90 degree phasing. RIH and perforate 8090'- 8060'. POOH and lay down spent guns. RIH with Gun # 18 and perforate 8060'- 8030'.. POOH and lay down spent guns. RIH with Gun # 19 and perforate 8030'- 8000'. POOH and lay down spent guns. RIH with Gun # 20 and perforate 8000'- 7970'. POOH and lay down spent guns. SD for day. 8/16/2012 PJSM, and rigged up tractor and Gun # 21, 30', 3 1/8 ", 4 spf, 90 degree phasing. RIH and perforate 7855'- 7825'. POOH and lay down spent guns. RIH with Gun # 22 and perforate 7825'- 7795'. POOH and lay down spent guns. RD Pollard and Welltec and move off location. Rig up Weatherford flow lines and test well. Flowed well for 60 minutes on 44/64 choke, then increased choke to 54/64 for 60 minutes. Total flow 660 Mcf. 8/17/2012 PJSM; RU Pollard and pull sleeve and set SSSV. Test control line pressure; tested good. RD and move Pollard and all remaining equipment off location. • • CINGSA CLU Storage 1 Re- completion Schematic FMC Wellhead - 13 5 /8" 50004 Multibowl FMC Trcc - 7" 50004 complete with SSV 8/17/2012 20" 13311 X56 driven to 115.5' TVD'I 15.5' MD 7" Ilalliburion Wireline Retrievable SSSV @ 173' TVD /173' MD 13 3/8" 684 155 BTC Surface Casing (it, 2 -643' TVD / 2956' MD 16" hole / Cemented to Surfacc 9 5/8" Davis Lynch DV Collar ('a 3,373' MD 7" 261f 1.80 Vam Top Tubing 7" x 9 5/8" Baker 7,XP Liner Top Packer with 10' seal bore (ii), 4,882' TVD / 7,343' MD 7" Vam Top 1IC - RN Casing Nipple, 5.88" No -Go ID (s@7.366' MD 9 5i8" 404 L80 BTC intermediate Casing (% 4,932' TVD / 7,563' MD 12 1/4" hole / Cemented to Surface Original Perforations 3.3 -2012 New Perforations 8-17 -2012 � MO Perforation TVO Perforation MO Perforation TV0 Perforation FrorTl To Footage From To Footage From To Footage From To Footage 9,560 9,500 60 5,155 5,148 7 9,560 9.500 60 5,154 5.147 7 9,440 9,400 40 5.140 5,135 5 9,435 9,405 30 5,139 5.136 3 8,700 8,640 60 5,067 5,061 6 8,500 8.320 180 5,046 5,025 21 6,510 8.240 _ 270 5,047 5.017 0 8,300 8,240 60 5.023 5,017 6 8.220 7,960 260 5,015 4.992 23 8,205 8.145 60 5,014 5,009 5 7,065 7,710 155 4,980 4,956 24 8,120 7,970 150 5.007 4,993 14 7,855 7,735 120 4.978 4,960 18 a Total Footage 843 Total Footage 95 Total Footage 880 Total Footage 74 M II no ® I 7" 264 1.80 Vam Top Production Liner from 4.882' TVD / 7,343' MD TOP to 5,164' TVD /9.659' MD TD 8 1/2" hole / Cemented t `"` / iS + ` €' 1513' '"" • • c� �.. /SEANPARNELLGOVERNOR ALASKA 0114 AND GAS 333 W. 7th AVENUE, SUITE 100 CONSERVATION COMMISSION ANCHORAGE, ALASKA 99501 -3539 PHONE (907) 279 -1433 FAX (907) 276 -7542 M. Colleen Starring Vice President Cook Inlet Natural Gas Storage Alaska, LLC a,i_-/i-t/ P.O. Box 190989 Anchorage, AK 99519 Re: Cannery Loop Field, Sterling C Gas Storage Pool, CLU Storage 1 Sundry Number: 312 -256 igrliatED JUL 2 4 2012 Dear Ms. Starring: 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. Sincerely, P9fg-t.d-t— Cathy . Foerster Chair DATED this L $ day of July, 2012. Encl. . , • ,,v R E p �E �D STATE OF ALASKA JUL 1 6 012 ALASKA OIL AND GAS CONSERVATION COMMISSION APPLICATION FOR SUNDRY APPROVALS AOGCC 20 AAC 25.280 1. Type of Request: Abandon ❑ Plug for Redrill ❑ Perforate New Pool ❑ Repair Well ❑ Change Approved Program ❑ Suspend ❑ Plug Perforations ❑ Perforate ❑ Pull Tubing ❑ Time Extension ❑ Operations Shutdown ❑ Re -enter Susp. Well ❑ Stimulate El - Alter Casing ❑ Other: ❑ 2. Operator Name: 4. Current Well Gass: 5. Permit to Drill Number: Cook Inlet Natural Gas Storage Alaska, LLC Development ❑ Exploratory ❑ 211149 3. Address: Stratigraphic ❑ Service 0 . 6. API Number: P.O. Box 190989, Anchorage, AK 99519 50- 133 - 20600 -0000 7. If perforating, closest approach in pool(s) opened by this operation to nearest 8. Well Name and Number: property line where ownership or landownership changes: Spacing Exception Required? Yes ❑ No El CLU Storage 1 9. Property Designation (Lease Number): 10. Field / Pool(s): 44._',_5b,. -Yet . ADL 391627 ' Cannery Loop /Sterling C °z- /L ' 124- 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): $683""964, f 5rk 8608' 5089' none none Casing ,a int ' Size MD TVD Burst Collapse Structural Conductor 95' 20" 115.5' 115.5' Surface 2956' 13 3/8" 2956' 2643' 3450 1950 Intermediate 7563' 9 5/8" 7563' 4932' 5750 3090 Production Liner 2316' 7" 9659' 5164' 7240 5410 Perforation Depth MD (ft): Perforation Depth TVD (ft): Tubing Size: Tubing Grade: Tubing MD (ft): see attached see attached 7 ", 26# L80 9659' Packers and SSSV Type: BHI 9 5/5" HR ZXPN Liner Top Packer Packers and SSSV MD (ft) and TVD (ft): Halliburton 7" WL FXE SSSV Pkr - 7343'/4882' SSSV - 173'/173' 12. Attachments: Description Summary of Proposal 0 13. Well Class after proposed work: Detailed Operations Program 1511 BOP Sketch IS Exploratory ❑ Development ❑ Service IS 14. Estimated Date for 15. Well Status after proposed work: Commencing Operations: 7/9/2012 Oil ❑ Gas ❑ WDSPL ❑ Suspended ❑ 16. Verbal Approval: Date: WINJ ❑ GINJ ❑ WAG ❑ Abandoned ❑ Commission Representative: GSTOR 0 - SPLUG ❑ 17. I hereby certify that the foregoing is true and correct to the best of my knowledge. Contact Rick Gentges (907)- 310 -7322 Printed Name iv1 ;,01 (s�'Y "1\r -\0 Ti tle 7 � v � L�_ 0 Sits ry N Signature Phone a e �f /� � , -- .L. }3 i 1 ca .„/ice. d • ceU0Akil COMMISSION USE ONLY .-7 Conditions of approval: Notify Commission so that a representative may witness Sundry Number: I 2- 2teD Plug Integrity ❑ BOP Test Mechanical Integrity Test ❑ Location Clearance ❑ J Other: T.5c' 7 j i BGp t /1/‘; hT 1 x16 efig'f Ci,� i r) a I e " Cc . / Z' Subsequent Form Required: f. — 4 t APPROVED BY Approved by: 1CLF COMMISSIONER THE COMMISSION REIMS JUL 19 2 01 Da -- 1 Z. 2 oF1t11A� Form 10 -403 Revised 1/2010 71/11/Z--- Submit in Duplicate ? A. • C• Inlet Natural Gas Storage Alaska, LLC Cook Inlet Nufurul 3000 Spenard Road PO Box 190989 Main: 907- AK 99519 0989 STORA a Main: 907-334-7980 q Fax: 907 - 334 -7671 , www.cingsa.com July 16, 2012 Alaska Oil and Gas Conservation Commission RECEIVED 333 West 7th Avenue, Suite 100 Anchorage, AK 99501 JUL 16 Z01Z Re: CLU S -1 AOGGC Application for Sundry Approvals Cook Inlet Natural Gas Storage Alaska, LLC (CINGSA) is requesting Sundry Approval to clean out solids /fill material from CLU S -1. CINGSA proposes to rig up a 1 3/4 -inch coil tubing unit and well test equipment on location as soon as possible to remove formation fines using foam and a coiled tubing unit. The proposed operations are described in the attached outline of well procedures but will generally consist of running coil in hole to bottom and then washing down with foam and nitrogen. The well will be flowed back via a choke manifold to a separator. Fluids will be recovered in a frac tank and gas will be either flared or vented through a flare stack. The well flow is not expected to last more than 1 hour after the foam solution is off the perforations. ✓ If you have any questions or require additional information, please contact Tom Arminski at 907 334 -7743 or email to tom .arminski@enstarnaturalgas.com. Sincerely, eidarktfil M. Colleen Starring Vice President Enclosure as stated • • CLU Storage 1 Outline Well Clean Procedures GENERAL SAFETY GUIDELINES A pre job safety meeting will be held with all affected personnel before every phase and for any change of program. Topics should include the following points: • H2S risks, spill prevention, and well control issues • Personnel assignments • Contingencies It should be stressed that while testing the BOP, only essential personnel should be around /near the tree. Normally "essential personnel" will consist of the coil crew and a roustabout for crane signals. All other personnel will stay clear of the tree area. RIG UP AND PRESSURE TEST 1. Notify AOGCC of upcoming rig up and BOP test 48 hours prior. Confirm SSSV protection sleeve is in place. • 2. Mobilize and rig up 1 % "coil tubing and well testing equipment to CINGSA Drill Pad. 3. Position Blind /Shear Rams in upper Combi BOP body and 1 % "pipe rams in lower body. Pre -test BOP, all lines and valves to 250 psi /4500 psi. Install fusible cap on SSV. 4. Call for AOGCC Inspector. Pressure test BOP, all lines and valves to 250 psi /4500 psi. Ensure form 10 -424 is sent in to AOGCC within 24 hours of Pressure Test. WELL CLEAN UP 5. Pick up circulating wash nozzle and injector head with crane. Lower injector head and make up lubricator connection. % 6. Run in hole to 9617'MD/5160'TVD or fill TD. When wash nozzle stacks weight begin washing down with 6% KCI /foam system until reaching TD. Displace wash fluid and any solids /fill with nitrogen and take returns through choke manifold to separator. 7. Monitor returns for methane. Strap tanks for return volume. Continue pumping N2 until well is clean of foam and flowing gas on its own. Shut off N2. 8. Flow well clean for up to one hour or until fluid is off perforations while POH with coil. Record pressures and rates. 9. Once coil is clear of tree, close upper and lower master and. Bleed pressure off through choke manifold until no flow. Close swab valve. 10. Nipple down coil. Nipple down test equipment. Send fluids to Emerald Anchorage for disposal. 11. Release coil unit. • 1 1 • • • . —.-41. CINGSA PROJECT -., COILED TUBING STACK UP . Kenai, AK ./ • 7 „... .... . = elf ; r.17 I. 3 333)ei.N31 Head CT iakg Cramp . . CpnvontIoNii CtrIpper t.H. 101.$ it Of Too. lubt,c410 I % I , 1 1 , 14- 7.06" Combi 60P 37 7 IQ ' • — 01 2.3/5" CI string ' 411 1 1 ,- 41111111.' ' 1 t• wa,,---,,r, iii 4 7.06" 5K Pow am w/outipt 1 ...... , '--- ,33, :i;343-ir, al..7 (--,% 1 4 7 06" 5K WA T SPS. SI ../ S . V.:Z.>, MI 0 S L . . .01:28.. .........r.m..... Well Clean Rig Up nee or, lo, on . n 1 1 I • .. tee Rex we Is noat 11311,1 • .....-- 1.0. SAND TRAP I .Lilk ■• a ,. ,..„.... 1 , i l =Sall_illa 0 I — — r m•--„,„_imis A 'NM 4111110 1400 YR . I - I i M IVO I ROM Lailrl I I .. 1 ..... i L------ -- —.3 a' MA Ws sm. SS as-SAA.Is s• PT , 7 .„,•,, --- - gee,. Tom 4— . —r— W it " 4" STACK 110 MST ea . AINAY MON ...,,.____swws.s_ISDAS Weatherford WLAIIIIERfOR,CINGSA e SW '.. Rain i ... . - ......... : . : ."62 1•=10= ; 10. ROMS& TANKS AND 1119 rear FROM RDINADONO EGLINMENT. I ,.■:........• I ISSOVACOL. YEAR xo•nar. scmour.1[••■•■ MaCTION IMO MAI 1,, ilriar :111.0.1 eamlIcaM It MIAISNSSOAS US 0.0•11110. INIMSTSMISIOSIMMIDES ,...........x...rarr...........s.S........''''. 1,10C,95 AND INSITIJNENTATION Ob.CrtAhl P, CA V ga,co, N -----"-- .712-773- — — ,........nle=r .....==. eleteee■n Neu. N . T. S • I C INGSA CLU Storage 1 Completion Schematic FMC Wellhead - 13 5/8" 5000# Multibowl FMC Tree - 7" 5000# complete with SSV 3 3' _C)1 _ 20" I33# X56 driven to 1 15.5' TVD /1 15.5' MD 7" Halliburton Wireline Retrievable SSSV (if 173' TVD /173' MD 13 3/8" 68# J55 BTC Surface Casing (a 2,643' TVD / 2956' MD 16" hole / Cemented to Surface • 9 5/8" Davis Lynch DV Collar (% 3,373' MD 7" 26# L80 Vam Top Tubing >I 7" x 9 5/8" Baker ZXP Liner Top Packer with 10' seal bore (w 4,882' TVD / 7,343' MD 7" Vam Top IIC - RN Casing Nipple, 5.88" No -Go ID (w7,366' MD I 9 5/8" 40# L80 BTC Intermediate Casing {i % 4,932' TVD / 7,563' MD 12 1/4" hole / Cemented to Surface MD Perforation TVD Perforation From To Footage From To Footage 7710.00 7865.00 155.00 4956.18 4980.00 23.82 - 7960.00 8220.00 260.00 4992.15 5015.55 23.40 8240.00 8510.00 270.00 5017.42 5047.05 29.63 8640.00 8700.00 60.00 5060.88 5067.25 6.37 9400.00 9440.00 40.00 5135,27 5140.07 4.80 ® ® 9500.00 9560.00 60.00 5147.35 5154.65 7.30 se me Total Footage 845.00 Total Footage 95.32 I I 7" 26# L80 Vam Top Production Liner from 4,882' TVD / 7,343' MD TOP to 5,164' TVD /9,659' MD TD 8 1/2" hole / Cemented • • AE o Luau T r; SEAN PARNELL, GOVERNOR TT ALASKA OIL AND GAS 333 W. 7th AVENUE, SUITE 100 CONSERVATION COM1IHSSION ANCHORAGE, ALASKA 99501 -3539 PHONE (907) 279 -1433 FAX (907) 276 -7542 M. Colleen Starring Vice President � (�- f Cook Inlet Natural Gas Storage Alaska, LLC �G P.O. Box 190989 Anchorage, AK 99519 Re: Cannery Loop Field, Sterling C Gas Storage Pool, CLU Storage 1 Sundry Number: 312 -250 {} Dear Ms. Starring: 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. Sincerely, ,,, , / Cathy ". Foerster Chair DATED this pp day of July, 2012. Encl. • C O JUL Oi 2012 ..,,A STATE OF ALASKA AOGCC ALASKA OIL AND GAS CONSERVATION COMMISSION APPLICATION FOR SUNDRY APPROVALS 20 AAC 25.280 1. Type of Request: Abandon ❑ Plug for Redrill ❑ Perforate New Pool ❑ Repair Well ❑ Change Approved Program ❑ Suspend ❑ Plug Perforations ❑ Perforate el - Pull Tubing ❑ Time Extension ❑ Operations Shutdown ❑ Re -enter Susp. Well ❑ Stimulate ❑ Alter Casing ❑ Other: ❑ 2. Operator Name: 4. Current Well Gass: 5. Permit to Drill Number: Cook Inlet Natural Gas Storage Alaska, LLC Development ❑ Exploratory ❑ 211149 • 3. Address: Stratigraphic ❑ Service 0 . 6. API Number: P.O. Box 190989, Anchorage, AK 99519 50- 133 - 20600 -0000 - 7. If perforating, closest approach in pool(s) opened by this operation to nearest 8. Well Name and Number property line where ownership or landownership changes: Spacing Exception Required? Yes ❑ No 0 CLU Storage 1 • 9. Property Designation (Lease Number): 10. Field / Pool(s): `57 ' '' ADL 391627 • Cannery Loop /Sterling C, Pool At) . g,,�.. 11. PRESENT WELL CONDITION SUMMARY Total Depth MD (ft): Total Depth iTVD (ft): Effective Depth MD (ft): Effective Depth TVD (ft): Plugs (measured): Junk (measured): q O r ,}3693 j / ?4 51 1` „ 4� - , .4- . 8608' 5089' none none � �'� Casing ( LengtFV 71 /1 $tructural Conductor 95' 20" 115.5' 115.5' Surface 2956' 13 3/8" 2956' 2643' 3450 1950 Intermediate 7563' 9 5/8" 7563' 4932' 5750 3090 Production Liner 2316' 7" 9659' 5164' 7240 5410 Perforation Depth MD (ft): Perforation Depth TVD (ft): Tubing Size: Tubing Grade: Tubing MD (ft): see attached see attached 7", 26# L80 9659' Packers and SSSV Type: BHI 9 5/5" HR ZXPN Liner Top Packer Packers and SSSV MD (ft) and TVD (ft): Halliburton 7" WL FXE SSSV Pkr - 7343'/4882' SSSV - 173'/173' 12. Attachments: Description Summary of Proposal IS 13. Well Class after proposed work: Detailed Operations Program ID BOP Sketch ❑ Exploratory ❑ Development ❑ Service 0 14. Estimated Date for 15. Well Status after proposed work: 7/9/2012 Commencing Operations: Oil ❑ Gas ❑ WDSPL ❑ Suspended ❑ 16. Verbal Approval: C , S 6 4 &ate: 7-'2_ -rt...- WINJ ❑ GINJ ❑ WAG ❑ Abandoned ❑ Commission Representative: t GSTOR 0 ' SPLUG ❑ 17. I hereby certify that the foregoing is true and correct to the best of my knowledge. Contact Rick Gentges (907)- 310 -7322 Printed Name M Q \ \� S' ( \V_ Title j\ ( '' Signature Phone " 1 �`j Date " ' 1l • - . 1 C../1% COMMISSION USE ONLY Conditions of approval: Notify Commission so that a representative may witness Sundry . 30. .; l Plug Integrity ❑ BOP Test ❑ Mechanical Integrity Test ❑ Location Clearance ❑ Other: Subsequent Form Required: / o U 0 y APPROVED BY Approved by: � COMMISSIONER THE COMMISSION Date: 746 -LL_, l . l L Form 10-403 Revised 1/2010 cJ R 1 61 S JUL 17101 ` / . q' /2 - Submit in Du �� 30, S enard Road p Cook Inlef RaturaiGas PO Box 190989 STO R ( Anchorage, AK 99519 -0989 July 6, 2012 RECEI Alaska Oil and Gas Conservation Commission t . �® J UL West 7th Avenue, Suite 100 L 0 X 2012 Anchorage, AK 99501 °OG Re: CLU Storage 1 Application for Sundry Approvals Cook Inlet Natural Gas Storage Alaska, LLC ( CINGSA) is requesting Sundry Approval to re- perforate CLU Storage 1. Limited injections into the well have confirmed evidence of near - wellbore damage to the existing perforations, thus the need to re- perforate. Only a portion of the previously perforated intervals will be re- perforated; no new sections of the reservoir will be f perforated. CINGSA proposes to complete the re- perforating work via an electric line unit, tractor tool, and lubricator on or about July 17, 2012. The operations as described in the attached outline well procedure will take place in two phases. A tractor tool, perforating gun and a GR/CCL correlation log will be run to TD to ensure proper depths. Perforating will take place in a balanced state and through a lubricator. The current BHP is approximately 800 -850 psi. The second phase will involve flowing the well back through a separator and flare system to clean up the perforations. The well flow is not expected to last more than 1 hour after all perforation work is completed. The return gas will be measured via ultrasonic meter for relative volumes. If you have any questions or require additional information, please contact Tom Arminski at 907 334 - 7743 or email to tom .arminski @enstarnaturalgas.com. Sincerely, • d • at M. Colleen Starring Vice President Enclosure as stated • • CINGSA FSS Service Customers July 6, 2012 Page 2 CLU Storage 1 Outline Perforating and Well Clean Procedures GENERAL SAFETY GUIDELINES A j re job safety meeting will be held with all affected personnel before every phase and p Y g for any change of program. Topics should include the following points: • Well site safety and placement of warning signs • H2S risks, spill prevention, and well control issues • Personnel assignments • Communications with crane operator • Contingencies CINGSA will establish a restricted area for arming the guns and Post Danger Explosives signs. All non - essential personnel must remain clear of the restricted area until after the gun assembly has been armed and run in the well to a depth of 200' or greater. It should be stressed that while picking up and running the perforating guns, only essential personnel should be in the vicinity of the well. Normally "essential personnel" will consist of the perforating crew, crane operator, and well site supervisor. All other personnel will stay a minimum of 200 feet from the well until the perforating string is at least 200' below ground level. Similarly, while retrieving fired guns, non - essential personnel must remain a minimum of 200 feet from the well until it has been confirmed that all shots have been fired and the spent guns laid down. Radio silence is not required with the firing systems described in this recommended practice. Flow -back from the well will not commence until all perforating operations have been completed and fired guns laid down. RIG UP AND PRESSURE TEST 1. Confirm SSSV protection sleeve is in place. 2. Mobilize electric line, tractor tool, lubricator, and perforating guns to CINGSA Drill Pad. 3. Install fusible cap on SSV. CINGSA FSS Service Customers • July 6, 2012 Page 3 PERFORATING RUN 4. Install Wireline Valves (WLV) on Well Head with crane. 5. Hang upper Sheave on crane. Install E -line in upper sheave. Run E -line through lubricator. 6. Pressure test lubricator. 7. Op check tractor 8. Make depth correlations for re- perforating. 9. Review Well -site procedures for explosive services. SECURE detonators will be used. 10. Arm guns (Follow the safety placard for SECURE detonators) / j 11. Lift lubricator with crane. Lift tractor GR /CCL, and gun into lubricator with the E -line. Position the lubricator and gun over well -head with crane and install lubricator on BO P's. 12. Test the Quick Test Sub 13. Open well -head and RIH. At 200 ft, switch from Safe to Operating mode. 14. Tag Float Collar at 8495'MD/5095'TVD. Note: Depth of packer / tubing tail /well restrictions / well deviation. 15. Correlate CCL /GUN to Reference Log (previous GR /CCL log). Go deeper than the perforated interval and pull gun up to the perforating interval. 16. Check Grease Injector for adequate pressure to maintain seal. Fire gun. 17. Check for Well Pressure loss /gain. POOH using caution at locations with restrictions. 18. At 200' STOP, check all that all safety switches are in the OFF position before proceeding to the surface with the tool- string. 19. Note: Always assume the gun(s) is live. 20. Pull gun into well -head / WLV / Lubricator. Close master gate and swab valves. Blow down lubricator. Bleed off any pressure in the lubricator. Verify the lubricator is not fluid packed. Break the lubricator off of the WLV's. Lay down gun. Confirm all shots have fired. Lay down the lubricator. Remove the WLV's. Install the tree cap. Rig down E -line. 21. The following intervals will be re- perforated: 9,560' to 9,500' MD (60', 2 runs with 30' guns) 9,435' to 9,405' MD (30', 1 run with 30' guns) 8,500' to 8,320' MD (180', 6 runs with 30' guns) 8,300 to 8,240' MD (60', 2 runs with 30' guns) 8,205' to 8,145' MD (60', 2 runs with 30' guns) 8,120' to 7,970' MD (150', 5 runs with 30' guns) • • CINGSA FSS Service Customers July 6, 2012 Page 4 7,855' to 7,735' MD (120', 4 runs with 30' guns) 22. Repeat steps 10 -20 for subsequent perf intervals. Perforations 2 7/8" PowerJet 2906 HMX 4 SPF MD Perforation TVD Perforation From To Footage From To Footage 9,560 9,500 60 5,154 5,147 7 9,435 9,405 30 5,139 5,136 3 8,500 8,320 180 5,046 5,025 21 8,300 8,240 60 5,023 5,017 6 8,205 8,145 60 5,014 5,009 5 8,120 7,970 150 5,007 4,993 14 7,855 7,735 120 4,978 4,960 18 Total Footage 660 Total Footage 74 WELL FLOW /CLEAN UP 23. Flow well clean for one hour through gathering system, well pad separator, and vent silencer. Record pressures and rates. 24. Release e-line unit and return well to injection operations. • • • CINGSA FSS Service Customers July 6, 2012 Page 5 Original vs. Proposed Completion CLU S -1 Original Perforations 3 -3 -2012 MD Perforation TVD Perforation From To Footage From To Footage 9,560 9,500 60 5,155 5,148 7 9,440 9,400 40 5,140 5,135 5 8,700 8,640 60 5,067 5,061 6 8,510 8,240 270 5,047 5,017 0 8,220 7,960 260 5,015 4,992 23 7,865 7,710 155 4,980 4,956 24 Total Footage 845 Total Footage 95 Proposed New Perforations MD Perforation TVD Perforation From To Footage From To Footage 9,560 9,500 60 5,154 5,147 7 9,435 9,405 30 5,139 5,136 3 8,500 8,320 180 5,046 5,025 21 8,300 8,240 60 5,023 5,017 6 8,205 8,145 60 5,014 5,009 5 8,120 7,970 150 5,007 4,993 14 7,855 7,735 120 4,978 4,960 18 Total Footage 660 Total Footage 74 • • CINGSA FSS Service Customers July 6, 2012 Page 6 CINGSA -� r LLU Stolae 1 Completion Schematic FMC Wellhead - 13 5/8" 5000# Multibowl FMC Tree - 7" 5000# complete with SSV 3.. 3, 2012 i 1 g . 20" 133# X56 driven to 115.5' TVD/115.5' MD 5 7" Halliburton Wireline Retrievable SSSV (u) 173' TVD/173' MD , f ? g i 13 3/8" 68# J55 BTC Surtacc Casing (i, 2,643' TVD / 2956' MD 16" hole / Cemented to Surface 9 5/8" Davis Lynch DV Collar (n) 3,373' MD 7" 26# L80 Vam Top Tubing 7" x 9 5/8" Baker ZXP Liner Top Packer with 10' seal bore @ 4,882' TVD / 7,343' MD 7" Vam Top 1IC - RN Casing Nipple, Ilti 5.88" No -Go ID (ca7,366' MD r 9 5/8" 40# L80 BTC Intermediate Casing (cry 4,932' TVD / 7,563' MD 12 1/4" hole / Cemented to Surface MD Perforation TVD Perforation Y From To Footage From To Footage i 7710.00 7865.00 155.00 4956.18 4980.00 23.82 7960.00 8220.00 260.00 4992.15 5015.55 23.40 8240.00 8510.00 270.00 5017.42 5047.05 29.63 8640.00 8700.00 60.00 5060.88 506725 6.37 9400.00 9440.00 40.00 5135.27 5140.07 4.80 d ■ 9500.00 9560.00 60.00 5147.35 5154.65 7.30 il° ■ Total Footage 845.00 Total Footage 95.32 as Et I I 7" 26# L80 Vam Top Production Liner from 4,882' TVD / 7,343' MD TOP to 5,164' TVD /9,659' MD TD 8 1/2" hole/ Cemented • • Schwartz, Guy L (DOA) From: Schwartz, Guy L (DOA) Sent: Thursday, July 12, 2012 3:37 PM To: 'Richard Gentges' Cc: 'john419halibut @gmail.com' Subject: RE: CLU S -1 Sundry Approval (PTD 211 -149) Rick, You have verbal approval to re- perforate CLU ST 1 as proposed in your sundry. Guy Schwartz Senior Petroleum Engineer AOGCC 793 -1226 (office) 444 -3433 (cell) Original Message From: Richard Gentges [mailto:Richard.Gentges @cingsa.com] Sent: Thursday, July 12, 2012 2:47 PM To: Schwartz, Guy L (DOA) Cc: 'john419halibut @gmail.com' Subject: CLU S -1 Sundry Approval Guy My perforating crews are making faster progress than they had originally estimated. They will be ready to start on CLU S -1 on Saturday morning. Any chance we may have approval of the Sundry by end of day tomorrow? We're just re- shooting the same interval we shot originally. Thanks Rick Gentges 1 • • (7 } SEAN PARNELL, GOVERNOR ALASKA OIL AND GAS 333 W. 7th AVENUE, SUITE 100 CONSER 1VATI 01V COMMISSION ANCHORAGE, ALASKA 99501 -3539 PHONE (907) 279 -1433 FAX (907) 276 -7542 April 4, 2012 M. Colleen Starring Cook Inlet Natural Gas Storage Alaska, LLC Vice President P.O. Box 190989 Anchorage, AK 99519 -0989 Re: Cannery Loop Gas Storage Project Start -up Sto . • - • • - • • • • rder 9 CLU S -01 PTD 2111491 APR 2O CLU S -02 (PTD 2111351 CLU S -03 (PTD 2110880) CLU S -04 (PTD 2111220) CLU S -05 (PTD 2111580) Dear Ms. Starring: The Alaska Oil and Gas Conservation Commission (AOGCC), by letter dated March 22, 2012, reminded Cook Inlet Natural Gas Storage Alaska, LLC (CINGSA) that injection associated with the Cannery Loop Gas Storage Project shall not commence until all outstanding obligations identified in that letter were resolved, namely review of pre- injection mechanical integrity tests of the five storage injection wells; review of the design, operation and testing of the well safety valve systems; remediation of existing pool wells with penetrations through the gas storage reservoir; and confirmation of plans for the installation of gas monitoring equipment. This letter provides official notice that CINGSA has satisfied AOGCC's requirements and is therefore authorized to commence injection into the Cannery Loop gas storage wells. This notice follows verbal approval to commence injection provided by the AOGCC on March 31, 2012. All requested information has been provided by CINGSA and reviewed by AOGCC. Affected wells — including the five new gas storage wells and the existing Cannery Loop Unit wells that penetrate the reservoir — have been confirmed to have mechanical integrity which will prevent the migration of injected gas from the storage reservoir. Technical discussions and reviews of the safety valve system information were supplemented by a walkthrough inspection of the well pad facilities by an AOGCC Inspector on March 31, 2012. The Inspector also witnessed a successful function test of the well safety valve system. CINGSA has committed to install gas monitoring equipment in 2 buildings owned by Inlet Fish Producers, Inc. that are within 50 feet of abandoned Kenai Unit well 13 -08. Agreement by both i M. Colleen Starring April 4, 2012 Page 2 of 2 parties — CINGSA and Inlet Fish Producers, Inc. — with equipment installation occurring as outlined in the agreement will satisfy Rule 3 of Storage Injection Order 9. Additional, post- injection obligations for operating the gas storage injection project are outlined in Storage Injection Order 9 and AOGCC regulations at 20 AAC 25. AOGCC appreciates CINGSA's effort to date to provide require requested information in a timely manner, make available technical staff to answer questions and resolve concerns, and in notifying AOGCC for opportunities to witness tests that are key to the success of the storage injection project operations. Sincerely, / p Cathy ' . Foerster Daniel T. Seamount, Jr. Chair, Commissioner Commissioner cc: R. Gentges, CINGSA • • C LC�( ► z411440 Regg, James B (DOA) From: Brooks, Phoebe L (DOA) Sent: Friday, March 23, 2012 3:21 PM 7�, 3� lr� To: Richard Gentges �5 Cc: Regg, James B (DOA) Subject: RE: CINGSA Initial MIT Results Attachments: MIT CLU S -3 09- 21- 11.xls; MIT CLU S -4 10- 23- 11.xls; MIT CLU S -5 01- 16- 12.xls; MIT CLU S -1 12- 15- 11.xls; MIT CLU S -2 11- 19- 11.xls Rick, Attached are revised reports as follows: • File naming convention was changed (ex. MIT CLU S -1 12- 15 -11) • "0" in OA data fields were removed and "0" was added to the tubing or casing fields • Verbiage pertaining to 10 -23 -11 testing was removed from the Notes (located near the bottom of the data portion of the form) Please let me know if you disagree. Thank you, ._,....._ -.... r. _ _, .._. Phoebe Phoebe Brooks Statistical Technician II Alaska Oil and Gas Conservation Commission S'" NNED MAR 0 2012 Phone: 907 -793 -1242 Fax: 907 -276 -7542 From: Richard Gentges [ mailto :Richard.Gentgesftcingsa.com] Sent: Friday, March 23, 2012 10:25 AM To: Regg, James B (DOA); DOA AOGCC Prudhoe Bay; Brooks, Phoebe L (DOA) Cc: Richard Gentges; cperry@ att.net; Matthew Federle Subject: CINGSA Initial MIT Results Jim Attached, per your instructions yesterday are the initial results of mechanical integrity tests that were performed on all five of CINGSA's storage wells while the drilling rig was still on each well. You had a number of questions in your email yesterday (copied below), which I have provided responses to. Thank you for the MIT reports; couple items: 1) Do wells have casing - casing annulus (OA)? Or was the pressure zero? The Outer Annulus (9 x 13) is cemented to surface on each of the five wells, thus pressure was not recorded. r 2) Please verify Tubing pressure in CLU S -1; pressure fall off never stabilized. I've confirmed the correct pressures are listed for CLU S -1. 3) CLU S -3 IA pressure fell below the required 1500psi; I will accept this as a passing test; refer to Industry Guidance Bulletin 10 -002, paragraph labeled "Test Pressure" regarding future tests 4) Was CLU S -4 tested 30 minutes ?; report only shows 15 min data. I went back and checked the drilling records and CLU S -4 was tested for only 18 minutes; no indication noted as to why. • • 5) We need separate reports for each well since done on different dates; include the test date in the "Date" field. Done 6) PTD # should be formatted without dash and adding trailing zero (ex. 2111490 instead of 211 -149). Done — 7) Interval should be I (initial) instead of 0 (other); I probably gave you bad advice on this previously. Done Please give me a call if you have any questions on these submittals. I can be reached at 310 -7322. Thanks very much. Rick Gentges 2 • • STATE OF ALASKA ALASKA OIL AND GAS CONSERVATION COMMISSION Mechanical Integrity Test Submit to: jim.regaCcr7alaska.gov doa .aoocc.prudhoe.bavaalaska.aov; phoebe.brooks(dialaska.aov Q v /7 Gt 2›1ti(I OPERATOR: Cook Inlet Natural Gas Storage Alaska, LLC 1 { ef( FIELD / UNIT / PAD: Cannery Loop Gas Storage - Sterling C DATE: 12/15/11 OPERATOR REP: Matt Federle AOGCC REP: Packer Depth Pretest Initial 15 Min. _ 30 Min. 45 Min. 60 Min. _ Well CLU S1 Type Inj. G" TVD 4,882' Tubing 0 3,000 / 2,980 2,900 '' Interval 1 P.T.D. 2111490 ' Type test P Test psi 3000 Casing 0 0 0 0 P/F P -' Notes: Test performed on 12/15/11 while drilling rig was on OA location, immdiately after runnin tubing. Casing pressure (9 5/8" registered zero, and the Outer Annulus S 9 x 13) is cemented to surface. Well CLU S1 r Type Inj. G TVD '4882' Tubing 0 0 0 0 Interval l P.T.D. 2111490 ' Type test P Test psi ' 1500 Casing 0 ' 1,700 1,680 1,670 - P/F P - Notes: Test performed on 12/15/11 while drilling rig was on OA location, immdiately after runnin. tubing. Tubing pressure (7 ") registered zero, and the Outer Annulus (9 x 13) is cemented to surface. Wel Type Inj. TVD Tubing Interval P.T.D. Type test Test psi Casing P/F Notes: OA Well Type Inj. TVD Tubing Interval P.T.D. Type test Test psi Casing P/F Notes: OA Well Type Inj. TVD Tubing Interval P.T.D. , Type test Test psi Casing P/F Notes: OA TYPE INJ Codes TYPE TEST Codes INTERVAL Codes D = Drilling Waste M = Annulus Monitoring I = Initial Test G = Gas P = Standard Pressure Test 4 = Four Year Cycle I = Industrial Wastewater R = Internal Radioactive Tracer Survey V = Required by Variance N = Not Injecting A = Temperature Anomaly Survey 0 = Other (describe in notes) W = Water D = Differential Temperature Test Form 10 -426 (Revised 02/2012) MIT CLU S - 12 - 15 - 11 (2) STATE OF ALASKA ALAS OIL AND GAS CONSERVATION COMMIS )ON WELL COMPLETION OR RECOMPLETION REPORT AND LOG la. Well Status: Oil ❑ Gas ❑ SPLUG ❑ Other 0 Abandoned ❑ Suspended 1b. Well Class: GSTOR 20AAC 25.105 20AAC 25 110 Development ❑ Exploratory ❑ GINJ ❑ WINJ ❑ WAG ❑ WDSPL ❑ No. of Completions: _ 1 Service El Stratigraphic Test ❑ 2. Operator Name: 5. Date Comp., Susp., or 12. Permit to Drill Number: -Z Cook Inlet Natural Gas Alaska, LLC Comp: 3/2/2012 211149 / 3 I Z - 6l 'T 3. Address: 6. Date Spudded: 13. API Number: P.O. Box 190989, Anchorage, AK 99519 11/26/2011 50- 133 - 20600 -00 -00 4a. Location of Well (Governmental Section): NAD 27 7. Date TD Reached: 14. Well Name and Number: Surface: 520' FNL 1764 FEL SEC. 9 T5N R11 W 12/10/2011 CLU Storage 1 Top of Productive Horizon: 7527 MD/4926 TVD 8. KB (ft above MSL): 53.5' 15. Field /Pool(s): 1488' FNL 657' FEL SEC. 8 T5N R11W GL (ft above MSL): 33' Cannery Loop/ Sterling C Pool Total Depth: 9661 MD / 5164 TVD 9. Plug Back Depth(MD +TVD): 439' FSL 1530' FEL SEC. 5 T5N R11 W 9,617'/5,160' FC 4b. Location of Well (State Base Plane Coordinates, NAD 27): 10. Total Depth (MD + TVD): 16. Property Designation: Surface: x- 281844.6 y- 2393032.28 Zone- 4 9,661'/ 5,164' ADL 391627 TPI: x- 277650.644 y- 2392129.405 Zone- 4 11. SSSV Depth (MD + TVD): 17. Land Use Permit: Total Depth: x- 276808.652 y- 2394074.726 Zone- 4 173'/173' ADL 230925 18. Directional Survey: Yes El No U 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 20AAC25.071): 22.Re- drill /Lateral Top Window MD/TVD: GRAM,CALM,RPC- SHM- SLM -CLM; BDCM,NPCKSM,DPEM Magtrak - 8 1/2 "only 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" 133 X56 23 115.5 23 115.5 na N/A none 13 3/8" 68 J -55 22 2956 22 2643 16" 231 bbls 12.2 lead / 64 bbls 15.4 tail 9 5/8" 40 L -80 20.5 7563 20.5 4932 12 1/4" 230bb1s 12.0 lead / 46 bbls 14.o tail 2nd stage - 201 bbls 12.0 9 5/8" stage collar @3,373'MD 7" 26 L -80 7343 9659 4882 5164 8 1/2" 74 bbls 14.0 ppg Flexstone 24. Open to production or injection? Yes El No El If Yes, list each 25. TUBING RECORD 'nterval ()pen (Mft +TVf) of Top & Bottom; Pprfnratinn Size and Numhar)• SIZE DEPTH SET (MD) PACKER SET ( MD/TVD) MD Perforation TVD Perforation 7" VamTop 26# L80 7353 7343/4882 From To Footage From To Footage 7710.00 7865.00 155.00 4956.18 4980.00 23.82 7960.00 8220.00 260.00 4992.15 5015.55 23.40 26. ACID, FRACTURE, CEMENT SQUEEZE, ETC. 8240.00 8510.00 270.00 5017.42 5047.05 29.63 DEPTH INTERVAL (MD) AMOUNT AND KIND OF MATERIAL USED 8640.00 8700.00 60.00 5060.88 5067.25 6.37 None 9400.00 9440.00 40.00 5135.27 5140.07 4.80 9500.00 9560.00 60.00 5147.35 5154.65 7.30 Total Footage 845.00 Total Footage 95.32 4.5" PowerJet 4505 HMX 4 SPF 27. PRODUCTION TEST Date First Production: Method of Operation (Flowing, gas lift, etc.): Date of Test: Hours Tested: Production for Oil -Bbl: Gas -MCF: Water -Bbl: Choke Size: Gas -Oil Ratio: Test Period - Flow Tubing Casing Press: Calculated Oil -Bbl: Gas -MCF: Water -Bbl: Oil Gravity - API (corr): Press. 24 -Hour Rate - 28. CORE DATA Conventional Core(s) Acquired? Yes ❑ No 0 Sidewall Cores Acquired? Yes ❑ No El If Yes to either question, list formations and intervals cored (MD +TVD of top and bottom of each), and summarize litholpgy_and..presefee°of as or water (submit separate sheets with this form, if needed). Submit detailed descriptions, core chips, pltotagr and laboratory analytical results per 2 AAC 25.071. R8ID AS MAR 15 2Q1 ` : Alaska Cii & Gas COf?S. Comrnisslon Form 10-407 Revised 12/2009 CONTINUED ON REVERSE - " - 7 . / fr f Subml aal only • 29. GEOLOGIC MARKERS (List all formations and markers encountered): 30. FORMATION TESTS NAME MD TVD Well tested? ❑ Yes 0 No If yes, list intervals and formations tested, briefly summarizing test results. Attach separate sheets to this form, if Permafrost - Top NA needed, and submit detailed test information per 20 AAC 25.071. Permafrost - Base Shallow Seismic Marker A10 5882 4182 Top B5 Coal 7466 4914 Sterling C1 Top 7527 4926 Sterling C2 Top 9076 5097 Formation at total depth: Sterling C2 31. List of Attachments: Well Report/Perforating Report/Pressure / Temperature Log 32. I hereby certify that the foregoing is true and correct to the best of my knowledge. Contact: 1 om Arminski 907 334 -7743 Printed Name: M. ColleeenStarring Title: Vice President Signature: r/'L _ C' �C e r:iL( i fry 1�117j.1 ' Phone: 907 334 - 7743 Date: INSTRUCTIONS General: This form is designed for submitting a complete and correct well completion report and log on all types of lands and leases in Alaska. Submit a well schematic diagram with each 10-407 well completion report and 10-404 well sundry report when the downhole well design is changed. Item 1 b: Classification of Service wells: Gas Injection, Water Injection, Water - Altemating -Gas Injection, Salt Water Disposal, Water Supply for Injection, Observation, or Other. Multiple completion is defined as a well producing from more than one pool with production from each pool completely segregated. Each segregated pool is a completion. Item 4b: TPI (Top of Producing Interval). Item 8: The Kelly Bushing and Ground Level elevations in feet above mean sea level. Use same as reference for depth measurements given in other spaces on this form and in any attachments. Item 13: The API number reported to AOGCC must be 14 digits (ex: 50 -029- 20123 -00 -00). Item 20: Report true vertical thickness of permafrost in Box 20. Provide MD and TVD for the top and base of permafrost in Box 28. Item 23: Attached supplemental records for this well should show the details of any multiple stage cementing and the location of the cementing tool. Item 24: If this well is completed for separate production from more than one interval (multiple completion), so state in item 1, and in item 23 show the producing intervals for only the interval reported in item 26. (Submit a separate form for each additional interval to be separately produced, showing the data pertinent to such interval). Item 27: Method of Operation: Flowing, Gas Lift, Rod Pump, Hydraulic Pump, Submersible, Water Injection, Gas Injection, Shut -in, or Other (explain). Item 28: Provide a listing of intervals cored and the corresponding formations, and a brief description in this box. Submit detailed description and _ analytical laboratory information required by 20 AAC 25.071. Item 30: Provide a listing of intervals tested and the corresponding formation, and a brief summary in this box. Submit detailed test and analytical laboratory information required by 20 AAC 25.071. Form 10-407 Revised 12/2009 • • Cook Inlet Naluraf-Gas Cook Inlet Natural Gas Storage Alaska, LLC 3000 Spenard Road a PO Box 190989 STORA Q ``�Q ► Fax: 907 - 334 -7671 March 13, 2012 ��yy ,. . Coy mission NaSi(6 On', Aftthetage Alaska Oil & Gas Conservation Commission 333 W. 7 Avenue, Suite 100 Anchorage, Alaska 99501 Re: Cook Inlet Natural Gas Storage Alaska, LLC (CINGSA) Well Completion Form 10 -407 CLU Storage 1 Gas Storage Well Please find attached Well Completion form 10 -407 for CINGSA's CLU Storage 1 Gas Storage Well and associated daily reports /well schematic. The well work has been completed and the well is available for storage operations. The following is a summary of operations conducted since the previous report. Date Operations 1/25/12 RU SLB coil 1/26/12 Test BOPS 1/27/12 Run Gr /CCL Memory Correlation log 1/28/12 Perforate 4 spf: 9500'- 9560' 9400' - 9440' 8640' - 8700' 8240' - 8510' 1/29/12 Perforate 4spf 7960' - 8220' 7710' - 7865' Blow Down well with coil. Recover 341 bbls brine 1/30/12 Opened Well to Flare - bled to 0 psi in 2 hours. 2/6/12 Ran Pressure Temperature Memory Log 2/28/12 Rigged up BHI Coil 2/29/12 Blew down well. Recovered 58 bbls brine • • AOGCC March 13, 2012 Page 2 3/1/12 N2 Pump Failure 3/2/12 Inject N2 - 2500 SCFM @344 psi /5000 SCFM @ -707 psi 3/3/12 Recovered SSSV Protector Sleeve. Set SSSV - Released well to Production Thank you and if you have any questions, please do not hesitate to contact Tom Arminski at 907 334 -7743 or tom .arminski@enstarnaturalgas.com. Sincerely, 2210-414--e-4-- gc ce44 M. Colleen Starring Vice President Enclosure as stated • 6 CINGSA CLU Storage 1 Completion Schematic FMC Wellhead - 13 5/8" 5000# Multibowl FMC Tree - 7" 5000# complete with SSV 3/3/2012 it : , , ,,,4, : o f 20" 133# X56 driven to 115.5' TVD /115.5' MD q. 4. 7" Halliburton Wireline Retrievable SSSV @ 173' TVD /173' MD f Vt!, F Y V 1 ,, 13 3/8" 68# J55 BTC Surface Casing @ 2,643' TVD / 2956' MD ili � 1 � 16" hole / Cemented to Surface 9 5/8" Davis Lynch DV Collar @ 3,373' MD 0 '41 7" 26# L80 Vam Top Tubing . 7" x 9 5/8" Baker ZXP Liner Top Packer ? ;?' with 10' seal bore @ 4,882' TVD / 7,343' MD 7" Vam Top HC - RN Casing Nipple, 5.88" No -Go ID @7,366' MD 9 5/8" 40# L80 BTC Intermediate Casing @ 4,932' TVD / 7,563' MD 0 ' ; As" : 12 1/4" hole / Cemented to Surface F:3 - - MD Perforation TVD Perforation From To Footage From To Footage ci 44 7710.00 7865.00 155.00 4956.18 4980.00 23.82 7960.00 8220.00 260.00 4992.15 5015.55 23.40 , t : : fro 8240.00 8510.00 270.00 5017.42 5047.05 29.63 8640.00 8700.00 60.00 5060.88 5067.25 6.37 9400.00 9440.00 40.00 5135.27 5140.07 4.80 9500.00 9560.00 60.00 5147.35 5154.65 7.30 Total Footage 845.00 Total Footage 95.32 7" 26# L80 Vam Top Production Liner from 4,882' TVD / 7,343' MD TOP to 5,164' TVD /9,659' MD TD 8 1/2" hole / Cemented I 800 psi 6,000 scfm CLU Storage 1 N2 Clean -Up 700 psi A — — f r -. - 5,000scfm 1 I I 1 1 1 1 I 600 psi I A 11 1 1 1 I 1 11 11 1 1 . 11 11 1 I 1 I all I it 1 1 1 I 1 — 4,000 scfm 500 psi 1 ` I 1 1 1 1 1 i I I I 1 I 1 1 1 1 1 I I 1 II 400 psi II I J 1 3,000 scfm 11 1 111 11 1 r 1 u 1 I 1 300 psi 1 1 1 t 1 • N 1 1 1 1 1 1 1 — I N 2,000 scf 1 i 1 —...— Surface Pressure CLUS 1 ` i 1 i I I 11 1 --N2 Rate fra 200 psi 1 1 1 111 1 i I I 1 r 1 i i 1,000 scfm 100 psi i' 1 1 } t 1 I1 1 I 11 11 1 I 11 11 I 0 psi 1 1 , „••••,,,,,,,,,- '_--- ....- --, - 0 scfm 8:24:00 9:36:00 10:48:00 Time 12:00:00 13:12:00 14:24:00 Schlumberger • Tubing Ccveyed Perforating Client Well R±ci Field Date Guns Cook Inlet Natural Gas Storage CLUS 1 SLB1 Kenai 1/8/2012 4.72" 4spf 4505PJ Count of Entries = => 29 Description Gun # Length Top Bottom Gun S/N MHA, Disconnect - Swivel- Checks 4 5.71 8,189.64 8,195.35 2 -3/8" SAFETY JOINT 3 16.25 8,195.35 8,211.60 CBF Firing Head 3.50" OD 2 4.20 8,211.60 8,215.80 :Blank (Safety Spacer w /puncher) 31 21.08 8,215.80 8,236.88 , -I puncher 450 - 4 - 147 8,236.88 8,240.00 ; _________________ 8,240.00 8,257.96 17.5 ft bottom up 71 Gun 29 21.08 8,257.96 8,279.04 450 - 4 - 103 80 Gun 28 21.08 8,279.04 8,300.12 450 - 4 - 104 80 Gun 27 21.08 8,300.12 8,321.20 450 - 4 - 105 80 Gun 26 21.08 8,321.20 8,342.28 450 - 4 - 106 80 Gun 25 21.08 8,342.28 8,363.36 450 - 4 - 107 80 Gun 24 21.08 8,363.36 8,384.44 450 - 4 - 175 80 Gun 23 21.08 8,384.44 8,405.52 450 - 4 - 176 80 Gun 22 21.08 8,405.52 8,426.60 450 - 4 - 177 80 Gun 21 21.08 8,426.60 8,447.68 450 - 4 - 178 80 Gun 20 21.08 8,447.68 8,468.76 450 - 4 - 180 80 Gun 19 21.08 8,468.76 8,489.84 450 - 4 - 181 80 (Partial) . 20.16 8,489.84 8,510.00 19.5 ft top down L . a 79 lank (Partial) 1 0.92 8,510.00 8,510.92 f_ Blank (Gun Puncher) 17 21.08 8,510.92 8,532.00 puncher 450 - 4 - 145 2 Blank (Gun Puncher) 16 21.08 8,532.00 8,553.08 _-I puncher 450 - 4 - 137 2 Blank (Gun Puncher) 15 21.08 8,553.08 8,574.16 1 puncher 450 - 4 - 144 2 Blank (Gun Puncher) 14 21.08 8,574.16 8,595.24 ; puncher 450 - 4 - 143 2 4 -J Blank (Gun Puncher) 13 21.08 8,595.24 8,616.32 1 1 puncher 450 - 4 - 157 2 Blank (Gun Puncher) 12 21.08 8,616.32 8,637.40 f_ p 450 - 4 - 156 2 plank ( 8,637.40 8,640.00 artial) 8,640.00 8,658.48 18.0 ft bottom up 73 Gun 10 21.08 8,658.48 8,679.56 450 - 4 - 117 80 Gun 9 20.44 8,679.56 8,700.00 450 - 4 - 179 80 Bottom nose & Lower set of guns 180.90 8,700.00 8,880.97 "OIL DEPTH . 691.26 < -- BHA length ant of Guns (Charges) - -> (1276) Depths are referenced by shot location. See additional handout for physical lengths. Blank Safety with puncher - 1 Intervals Top MD Bottom MDR Net Blank Net Loaded spf Blank (Gun Puncher) 6 Blank (Top) 8,215.80 8,240.00 i 24.20 ' ,,,. ,,,. Partially Loaded Gun - 3 1 Loaded 8,240.00 8,510.00 ' ,510.00 f , , 270.00 4 Fully Loaded Gun - 12 Blank 8,510.00 8,640.00 s i 130.00 ,,. ?4 Bottom Gun - 1 2 Loaded 8,640.00 8,700.00 ,, 60.00 4 Bottom set of guns 8,700.00 8,880.90 1 180.90 � ,' y,; L` J - U 1� Total Loaded 330.00 Total Blank 335.10 U JIPPE R Total Gun Length 66510 *pi ftgoatsAtv Total Schlumberger BHA Length: 691.26 Ft. Updated 10.28 FINAL Prepared By: Reviewed By: Client Representative: WCPTCP /SDP -054 Scot Shier Nikolai Soshnin John Nicholson /Mike Grubb Revision: AKA1.4 - 15- Dec -07 1of1 Schlumberger • Tubing Coreyed Perforating Client Well Rig Field Date Guns Cook Inlet Natural Gas Storage CLUS 1 SLB1 Kenai 1/8/2012 4.72" 4spf 4505PJ Count of Entries ==> 31 Description Gun # Length Top Bottom Gun S/N MHA, Disconnect - Swivel- Checks 3 5.71 7,667.18 7,672.89 2 -3/8" SAFETY JOINT 2 16.25 7,672.89 7,689.14 CBF Firing Head 3.06" OD 1 4.50 7,689.14 7,693.64 _ B lank (Partial) 251 16.36 7,693.64 7,710.00 I 1 Gun (Partial) 25 4.72 7,710.00 7,714.72 4.0 ft bottom up 17 Gun 24 21.08 7,714.72 7,735.80 450 - 4 - 160 80 Gun 23 21.08 7,735.80 7,756.88 450 - 4 - 159 80 Gun 22 21.08 7,756.88 7,777.96 450 - 4 - 158 80 Gun 21 21.08 7,777.96 7,799.04 450 - 4 - 111 80 Gun 20 21.08 7,799.04 7,820.12 450 - 4 - 174 80 Gun 19 21.08 7,820.12 7,841.20 450 - 4 - 173 80 Gun 18 21.08 7,841.20 7,862.28 450 - 4 - 172 80 (Partial) 1 2.72 7,862.28 7,865.00 2.0 ft top down 9 lank (Partial) 17 18.36 7,865.00 7,883.36 Blank (Gun Puncher) 16 21.08 7,883.36 7,904.44 1 1 puncher 450 - 4 - 110 Blank (Gun Puncher) 15 21.08 7,904.44 7,925.52 1 1 puncher 450 - 4 - 128 Blank (Gun Puncher) 14 21.08 7,925.52 7,946.60 1-1 puncher 450 - 4 - 114 rtial) 13 13.40 7,946.60 7,960.00 Gun (Partial) 13 7.68 7,960.00 7,967.68 7.0 ft bottom up 29 Gun 12 21.08 7,967.68 7,988.76 450 - 4 - 161 80 Gun 11 21.08 7,988.76 8,009.84 450 - 4 - 162 80 Gun 10 21.08 8,009.84 8,030.92 450 - 4 - 163 80 Gun 9 21.08 8,030.92 8,052.00 450 - 4 - 164 80 Gun 8 21.08 8,052.00 8,073.08 450 - 4 - 165 80 Gun 7 21.08 8,073.08 8,094.16 450 - 4 - 166 80 Gun 6 21.08 8,094.16 8,115.24 450 - 4 - 112 80 Gun 5 21.08 8,115.24 8,136.32 450 - 4 - 182 80 Gun 4 21.08 8,136.32 8,157.40 450 - 4 - 167 80 Gun 3 21.08 8,157.40 8,178.48 450 - 4 - 168 80 Gun 2 21.08 8,178.48 8,199.56 450 - 4 - 109 80 Gun 1 20.44 8,199.56 8,220.00 450 - 4 - 115 80 Bottom nose 0.86 8,220.00 8,220.86 553.68 < -- BHA length Count of Guns (Charges) - -> 25 (1581) Depths are referenced by shot location. See additional handout for physical lengths. Intervals Top MD Bottom MDR INet Blank Net Loaded spf Blank (Gun Puncher) - 3 Blank (Top) 7,693.64 7,710.00 , 16.36 0 _' Partially Loaded Gun - 3 1 Loaded 7,710.00 7,865.00 j,�' 155.00 Fully Loaded Gun - 18 Blank 7,865.00 7,960.00 95.00 Bottom Gun - 1 2 Loaded 7,960.00 8,220.00 260.00 4 RUN � t � 'f Total Loaded 415.00 CLUS-1 R SV !Y Total Blank 111.36 ° ` 1 Total Gun Length 526.36 Total Schlumberger BHA Length: 553.68 Ft. Updated 14w291012012 F 1 Prepared By: Reviewed By: Client Representative: WCP/TCP ?SDP -054 Scot Shier Nicola! Soshnin John Nicholson /Mike Grubb Revision: AKA1.4 - 15- Dec -07 1 of 1 Schlumberger • Tubing Coreyed Perforating Client Well flg Field Date Guns Cook Inlet Natural Gas Storage CLUS 1 SLB Kenai 1/8/2012 4.72" 4spf 4505PJ Count of Entries = => 13 Description Gun # Length Top Bottom Gun S/N Upper set of guns BHA 2 511.22 8,869.60 9,380.82 i TCP eFire Firing Head 1 11.18 9,380.82 9,392.00 8 8.00 9,392.00 9,400.00 i Gun (Partial) :.- .: > __, a ,, 13.08 9,400.00 9,413.08 12.5 ft bottom up 1 450 - 4 - 2195 51 Gun 7 21.08 9,413.08 9,434.16 450 - 4 - 2010 80 Gun (Partial) 61 5.84 9,434.16 9,440.00 5.0 ft top down ' 450 - 4 - 2194 21 Blank (Partial) 6 15.24 9,440.00 9,455.24 _ Blank (Gun Puncher) 5 21.08 9,455.24 9,476.32 I puncher 450 - 4 - 170 2 Blank (Gun Puncher) 4 21.08 9,476.32 9,497.40 -1 puncher 450 - 4 - 171 2 Blank (Partial) 3 2.60 9,497.40 9,500.00 Gun (Partial) 3 18.48 9,500.00 9,518.48 18.0 ft bottom u p 450 & -4 _ = + 73 Gun 2 21.08 9,518.48 9,539.56 450 - 4 - 2184 80 Gun 1 20.44 9,539.56 9,560.00 450 - 4 - 2191 80 (Bottom nose 0.86 9,560.00 9,560.86 . 691.26 < -- BHA length Count of Guns (Charges) - -> (389) Depths are referenced by shot location. See additional handout for physical lengths. Intervals Top MD Bottom MD1 'Net Blank Net Loaded spf Blank (Gun Puncher) - 2 Blank (To.) 9,392.00 9,400.00: i 8.00 Partially Loaded Gun - 3 1 Loaded 9,400.00 9,440.00 "" 40.00 4 Fully Loaded Gun - 2 Blank 9,440.00 9,500.00 ; i 60.00 Bottom Gun - 1 2 Loaded 9,500.00 9,560.00 ; -s.. 60.00 4 e L u R Tota Loaded 1 68 . 00 , * Total Gun Length 168.00 � Total Schlumberger BHA Length: 691.26 Ft. :4 . al 2 Updated low .- Prepared By: Reviewed By: Client Representative: WCP/TCP /SDP -054 Scot Shier Nikolai Soshnin John Nicholson /Mike Grubb Revision: AKA1.4 - 15 - Dec - 1of1 • • I CINGSA 1 VVall:ICLU # 1 ' Field:1Dolly Varden 102 -07 -2012 I • ) ■ 0 Q g L 0 5000 1 6000 7000 8000 1 1 i 1 20 30 40 50 60 70 80 90 100 110 120 Temperature (Deg. F) —Pressure — Perfs 7" —Temperature Report Date 2 -7 -2012 INGSA - DAILY DRILLING REPORT 1/25/2012 Well Name CLU Storage 1 BHA #: CoiI t ..ng work DSM Days: John Nicholson Currentlh 9661 Locatio K AK Tar 9661' Cell Phone: (907) 299 -4306 ,.,,..: Desth: ftg/24hrs, 0 Field/Pool: Cannery Loop / Sterling C Contractor: schlumber NghMts, Mike Grubb 22 /1 CMP Present R/U COIL TUBING & Flow Testers Rig Phone: (907) 398 -3156 Ceit Phone: (509) 431 -7988 „° iitt Operation: e ,, ZE MFG TYPE SER# JETS IN OUT FEET BITGRAD ; OTALH rr ' ,."z #DIV /01 ; 81 `. EIGHT GRADE THREAD DEPTH .:, d/i °.ANY % .. ,R.. 20 133# X -56 Welded 95' N/A Jul - 4= 13 3/8 68 J -55 BTC-M 2956' SLB 29 Nov 9 5/8 40 L -80 BTC -M 7563 SLB 5 -Dec - 42% 7 20 L -80 Vam Top 9659' SLB 12 -Dec ID = 6.276 ' 7 20 L -80 Vam Top 7343' - - .0383 BPF ., .n., ae" ' MUD PROPERTIES: MUD ADDITIVES: ' ; Dal Cu le r a� F 0 WEIGHT 8.7 ■3EL too tb .. 420 0 ® - 5 ASH (50 ti, bag) 0 „ 'F.; � ,, ,,; '° 0 f2600/R300 KLA -GUARD 3 ` e '' ab 94 0 8200 R100 LDTOR0 /776 /STEEL LUKE 2332 `° ;'is,{,.,,, ' - R6/R3 - ASPHASOLSUPREME 269 p� ®pi %'` C�''� %9� ��; - t'W - CONDOR dfl4 14 T52 „ Yt' PCITASSIuM CHLORIDE 1547 ziiiu,,,,,, , ,; - - - FLOWZAN < - 90 's' ,,fit,,' - - aT g : , p Pi FLUID LOSS PAC 164 Lifilit ',',.:1 °€ ',,;' -; T CAKE APHIFT CF- DESGOK 119 AVDP: SOLI ©5 NIYACIDE 3A$5 2 � AVA _ 011/WATER GCE X ' � 0 r7 4,:,""`;"„:" - '",',"%ititlia - SAND - CITRIC AGT/SAP ZARB 778 .,,,,,,, , ..h,,. "77,TrfEi . ,- ING &HYDRAULICS PH 8.2 RESINEX' 97 u d WOB - Pf/Mf - CAUST(CfSODA 35 - - e.. 26800 SODIUM, `` , a : ,4= , ' TE/mrtab - 91 - i*A,,,.g,, .' `' - CA - BARITE :. SEAL ' : - 687 s ' , - `.. - VOL. PIT - (BBL) - LW t q". T'# % ; 4746.2 i 7 ' ' 2. - 'i ,, . a ;,,; - HOLE - (BBL) 370 SOODS r. MM) '- 4282 > a r - %;t - "VEL d%, - API SCREEN z , „ a c...,b' - 0 15676.2 ACTIVITY SUMMARY ,, %;' , 0 . a,'.. ° ' ,. „ ' ,e � ... a .: Detail' • � �r � : . Hours ,,... 6:00 R/U Coil tubing operations. PJSM : set 50 X 100 liner and RU /RD : 24.00 176.50 berm for Weatherford flow back tanks, P - tank and choke Drilling , _;', , 122.75 manfold. Set liner for Coil tubing area. Unload flare unit. Service/Repair 19.00 13:00 7.00 set baffle tank , P tank and Choke manifold Surveys 4 , <�y 0.00 13:00 Back in coil tubing unit and center on well. Load 2 3/8 coil Tripping - �' 130.00 on carrier. Set pump unit. Mount control cabin on coil frame Change BHA 7.50 Continue to R/U WFD flow Iines.Set 400bbI tanks. Finish Casing Crew 75.50 flare line, choke lines and P -tank lines. Set injector head CT Cementing Crew 15.50 unit and rig up. Erect frame work around P -tank. Crane out Logging 6.50 6:00 17.00 enviro vac and prep to move out. NU/ND Test 2 . 32.50 DST ofe' °r• 0.00 weii:.Corttr i ''.. 0.00 "r 0.00 r 0.00 or�'.)Ift w ;; M.;iF,;" 8.50 Cir C4 :. F 59.75 „,,( D ///O% ,, : 24,0O;: , (See Remarks & Comments Below ", i , 2. ,,< .a• 24.00 654.00 '''''' ,, 1 „,', '''' ...:,,.. ' " "ITEAM CONNDOWN CONNUP VENDOR OED. I.D. :e . ,,, �,. E CK LEND; ;' " T OTAL IENGT)I BHA TOTAL LENGTH o.00 REMARKS & COMMENTS °- E - No accidents or spills. 7" Cap.= .0383 bpf (ID 6.276) Burst 7240psi ! .n Location daybefore 0 PJSM's for all jobs. 9659' x .0383 = 369.94 bbls Diesel Used Litet24i 261 Called AOGCC (Jim Regg) 11:00 am, notice of pending BOP test 1 -23 -12 , Diesel' Received 761 a: TOTAL D ES L 500 "% /i u,,:,; ; PERSONNEL Ems; i � , �, � i COMPANY NOTE COUNT HOURS TOTAL COMPANY NOTE COUN HOURS TOTAL Slumber -J Coil Crew 6 14 84 AIMM Roust 4 12 48 PRA DSM 2 12 24 _ Pollard Wire line 0 PRA Safety /PM _ 1 1 1 Big G Electrician 1 2 2 Weathorford Testing 4 12 48 0 Weaver Bro Fork lift 2 9 18 0 } 0 - TOTAL COUNT 20 TOTAL MAN HOURS 225 CINGSA -DAILY DRILLING R EPOR Date: 1/26/2012 Ne r CLU Storage 1 BHA : Coil t •irk DSM ©ays: John Nicholson 8 xsntDepth: 9661 Kenai, AK t ht 9661ng ' wo CeHPt ine:" (907) 299 -4306 Ftgr24hrs. 0 Fleldfl� ,,, Cannery Loop / Sterling C CantRrlactot schlumberger 13 rs'Slnce 23 /2CMP Present R/U COIL TUBING & Flow Testers Rig Phone: (907) 398 -3156 (509) Mike 431 -798 Spud CfiraE3arr. RILLIIG DATA , % SIT f$ SIZE E # . DEPJE "O UT FEET"'"!/,:,;,' � #DIV /0! ' ® „ ®'; y °CASING' SIZE WE GRADE THREAD TH ' ENT COMPAN , " . •ATE r. Corductoc _ 20 133# IGHT 95' N/A July Surface: 13 3/8 68 J X -56 Welded 55 BTC M 2 S LB 29 Nov lntermedlate 9 5/8 40 L -80 BTC -M SLB 5 Dec diner 7 20 L -80 Vam To 9659' SLB 12 -Dec ID = 6.276 Tubi g 7 20 L -80 Vam Top n 7343' .0383 BPF PUMP # f PUMP #2 I MUD PROPERTIES ]M1JD V ( Daily FCumulatius '0UMP MANE PttM MANF 0 WEI GHT 8.7 'EI (50l h 420 PUMP TYPE POMPTYP 0 FUNNEL VIE S. ASH {5Q tb SF ITI�ES: 0 LINER SIZE LIN6 0 R600/R300 ICI A -GUARD 3 STOKE S1 NGTH 0 R200/R100 L3TORQFTT8 /U 2332 $PR9 s SPAA.. „,,, R8 /R3 ASPHASOLS f'RE STEELttu1 BE 269 GIBS CPS" PV Gfi1NtCtR444 ' 14 GPM GPM YP POTASSIUM CHLORIDE 1547 P81 PSt GELS PLOWZAN 90 BTMSftPMttd BTtvtS UP MIN' API FLUID LOSS - PAC 164 TOT CIR Mtt - TOT CIR MIN CAK APHIHT CF »DESCO It 119 AVDP: AVDP: SOUDS MYACIDE GA25 2 AVDC, , , o AVM. OIL,'WAT R GEL -X 0 A1II .. AVDC: SANE) CITRIC ACID l "" SAFE CftR6 778 DRILL ST & HYDRAULICS PH 8.2 RE INE)C 97 STRING WT. WOS PfrMi CAUSTIC SODA 35 PKX P- RP � CIELORiD LS 26800 a �� EiIAR 91 " Ct4 OFF TFA CA BARft'E / NUT PLUG / G SEAL /; 687 MAX PULL HSP ' VOL PIT - (BBL) bathos (8130 S hauled) . 4746.2 ECD PRESS DROP HOLE - ( BBL , 370 SOLIDS Da{88t s Mud hauled kty Alt?E 'i 4282 DCOD JET VEt API SCREEN Daily Cutn. 0 15676.2 ACTIVITY SUMMARY TIME SUMMARY Start Finish J How` Des LIettwl ( Dally' f Cumulative 6:00 R/U Coil tub opera S et Berm and glycol tank. RU}RD 24.00 200.50 9:00 3.00 continue R/U on coil and Weatherford testers Drilling 122.75 9:00 Spot Pollard wire line & R/U to pull sleeve in SSSV. RIH Service /Repair Rig 19.00 Latch on to sleeve and POH. Make up 5 id sleeve RIH Surveys 0.00 11:30 2.50 and set. POH R/D Pollard wire line, secure well head Truing 130.00 11:30 Continue to R/U coil tubing & Weath erford testers. Plumb In Change BHA 15.50 7.50 glycol tank. Glycol semi thick. Set ISO tank and pump in 60 Casing Crew 75.50 bbls of glycol from vac truck. Set up truck mounted boiler Cementing Crew and heat glycol. Test pilot on flare stack. Stab stripper on Logging 6.50 BOP. Stab coil into injector head. Rotate lower cage, reroute U /ND Test 32.50 hydraulic lines. Remove tree flange and stab BOP & N!U Set l}STtCore ' 0.00 6:00 18.50 work platform, rig up handrails and andjust platform. T on 0.00 0.00 tins 0.00 Note: Jim Regg AOGCC waived Witness 1 -25 -12 14:00hrs . me " "" " " 8.50 59.75 For BOP test i 2 4 , 00 ISee Remarks & Comments Below T a , „,,,, ,, : 2 4.00 678.00 BOTTOM HOLE ASSEMBLY QT'( ITEM CONN DOWN CONN UP VENDOR O.D. 11,17 f „ a LENG TtlTA t F 7H I BHA TOTAL LENGTH 0.00 `. .,474%, ; a ;r1 � 96 s gt .038 , ,, ,» ',40 DIESEL %�•��.'» "" • accidents or spills. 7 Cap. .0383 b pf (ID 6 bbls Burst 7240psi Diesel Diesel on Location day before 761 PJSM's for all jobs. 9' x 3 = 369.94 U sed La 24 800 Dieset Received 726 T Cf SAL Dt£SE 461 COMPANY NOTE COUNT HOURS TOTAL COMPANY NOTE COUNT HOURS TOTA Slumber -J Coil Crew 8 12 9 6 AIMM Roust 4 12 48 PRA _ DSM 2 12 24 Pollard Wire lin 3 5 15 2 12 24 _ PRA Safety /PM 1 1 1 AHR Boiler Weathorford Testing 24 4 12 48 0 Weaver Bro Fork lift 2 12 0 0 TOTAL COUNT 26 TOTAL MAN HOURS 280 •CING -DAILY DRILLING REPOR Date: 1/27/2012 Well Name CLU Storage 1 BHA Coil Ming work DSM ©ays: John Nicholson Current Depth 1 9661 L ocation: Kenai, AK Tar 9661' CI Phone:! (907) 299 -4306 Depth f' Ftg/24hrs, 0 Ftetd/Pool: Cannery Loop / Sterling C Rig schlumberger pSM Mike Grubb Contractor: fights a�.£kaysSince 24 /3CMP Present Rig Phone; (907) 398 -3156 , , (509) 431 -7988 Spud Clperation: C4 ' %e044 'i MEG TYPE SER# JETS IN OUT PE s s �,r, #DIV /DI _ SIZE WEIGHT GRAD THREAD DEPTH CEMENT ;,, - AIRY 20 133# X -56 Welded 95' N/A July S te„ 13 3/8 68 J-55 BTC -M 2956' SLB 29 -Nov - 9 5/8 40 L -80 BTC -M 7563 SLB 5 -Dec - y ,,j% 7 20 L -80 Vam Top 9659' SLB 12 -Dec ID = 6.276 F< "' 7 20 L -80 Vam Top 7343' .0383 BPF `" 2 MUD PROPERTIES: M D ADDIT Da ; Cumulative MP MANE 0 WEIGHT 8 ( lb tag) 420 % ,, k „' , , 0 FUNNEL VIS S: ASP! (xv0lb brig) 0 "4 �� &i 0 R600/R300 KLA -GUARD 3 4l �) ;' 0 R200JR100 LOTORQf778 /STEELLUt 2332 /7 _ ,„ _ Rfi /R3 ASPHASOL SUPREME 269 Vi �, PV Gt7NftC}R 4t}4 is 14 r , YP POTASSIUM CHLe h '„ 1547 #k GELS FLOW/AN, 90 ;_', .t API FLUID LOSS PAC' j 164 '`' " - e ' IN CST ,r, 119 ` ^ SOLID / v 2 f OIL/WATER e m i �r? ;° 0 i .. //,, ,; . , SAND ; _ 778 %' it'i" �, � ',ic As RAULIC5 PH 8.2 r , t- 97 e �',: - °,%;""'" r r /, Pf1Mf � #, 9A 35 p CHLO 26800 + 91 • T t _ CA - 687 X 5 y , z, Hm ® 00E4' 4746.2 VOL PIT - (BBL) LIQUIDS {s ,;, r' � a <� HOLY (BEL) 370 SOLIDS (BELS It atged 'AIM 4282 % y p a , o ei/ API SCREEN Daily Mud Curti 0 15676. � „,d� , qtr; -Y 1 .. T(ME SIMMARY a .,_. . zf't n r Delscri *� retail Dail cumulative 6:00 P JSM, Re wor p latform, add 3 ' lubricator, stab coil RlJ /RD 14.50 215.00 into pack offs, pick up injecter head, zero depth and Drilling 122.75 12:00 6.00 recalibrate. Service /Repair Rig 19.00 12:00 16:00 4.00 Make up injector head. Thaw out C -pump. Surveys 0.00 16:00 0 Mill coil with glycol. Fill BOP with glycol and bleed air from Tripping 3.00 133.00 r \ ( system_ Test 250/ 4000 psi full body and choke manifold test, Change BH A 7.50 } � g ood test.Test 250/3500 psi blind shear rams and pipe Casing Crew 75.50 22:30 6.50 Choke valves,lnside and outside P -sub valves.Good test. Cementing Crew 15.50 22:30 Pull and push test coil. Draw down test.Remove injecter Logging 6.50 check for slip marks. Make up plate, test coil and connection NU/ND Test 6.50 39.00 to 460/ 3500 psi (power pack bad for make up tool had to DST /Core 0.00 3:00 4.50 replumb to coil power pack) Good test, remove plate Well Control 0.00 3:00 PJSM, M/U memory tools (GR & CCL ,5" OD) M/U injecter WOC 0.00 5:00 2.00 head. Install fusible link on ssv. Install tubing tenth monitor Safer Meetings 0.00 5:00 6:00 1.00 RIH with memory tools Dri[Cing Cement 8.50 Circ /Other , 59.75 24.00 See Remarks & Comments Below TOTAL 24.00 702.00 BOTTOM HOLE ASS LY s. , QTY 1 ITEM CONN DOWNJ CONN 1 uF I ,. VENDOR 1 D.D. t.€x GAUGE • Ma s .... :L ENGTH I TOTAE LENGTH BHA TOTAL LENGTH o.00 y{ ` n REMARKS & CQMME , %% , ,. , ,t, K , , '` ,,,,,.r No accidents or spills. 7" Cap. .0383 bpf (ID 6.276) Burst 724 a . - an etcatlar lay 461 PJSM's for all jobs. 9659' x .0383 = 369.94 bbls Diesel Used Last 24 1,046 Temp - 22/ -11 Diesel Received 885 TOTAL DIESEL, 300 PERSONNEL °N LOC ITION COMPANY NOTE COUNT HOURS TOTAL COMPANY NOTE COUNT HOURS TOTAL Slumber -J Coil Crew 10 12 _ 120 AIMM Roust 5 12 60 PRA DSM 2 12 24 Pollard Wire line 0 0 0 PRA Safety /PM 1 1 1 AHR Boiler 0 0 0 Weathorford Testing 4 12 48 _ _ 0 _ Weaver Bro Fork lift 2 12 24 0 _ 0 - TOTAL COUNT 24 TOTAL MAN HOURS 277 • CINGSA - DAILY DR REPOR ` Date: 1/28/2012 Well Name CLU Storage 1 BH Coi pi ng work DSM Nlg D a y s: ', John Nicholson :et Depth: 9661 Locat,wt Kena AK T 9661' C ell Pho (90 Depth 'P 124hrs. 0 9' Cannery L oo p / Ster ling C Rig schlumber pS Mike Grubb %i', : Co htS: Bays Stnce 25 /4C MP R1g,Phone:' (907) 398 -3 Deli Phony: 9 431 - 7988 I ?C� T A "', , �ti „ J/,,, ..,0 % .' MF f SER r JETS #N OUT FEET a ;;` AOE T 3TA# 11c#URS > rmlx # /0! G' S IZE WEIG G LADE THREAD DEPTH C NT D---- ©A ,,,,,,,,,;12 a,fx 20 133# X -56 Welded 95' N/A July - -; ", 1 3 3/8 68 J -55 BTC -M 2956' SLB 29 -Nov - 9 5/8 40 L -80 BTC -M 7563 SLB 5 -Dec "r 7 20 L -80 Vam Top 9 SLB 12 -Dec ID = 6 27 :'fi 7 20 L -80 Vam To p 7343' 0383 BPF ,,, ,,, %„ 3 -. � ` ,,, /iii,q i.fl, /f /r /r .. " . .. r s �:.. :. _ M m DD ;,1 � i i , � - 0 WEIGHT 8. GEL m a 420 a • '., K�lt ^. 0 MAINE UtS s. ASH (034"' 0 -: -LINER 0 R60730 t{LA- GUARD 3 "a 0 R200;R100 Lt3TOR G3Pl78lST£ELL#JBE 2332 R6/R3 ASPHASOL SUPREME 269 Ewa t, Y,0 a RV GONQOR404 14 • II lei - P 7TASS #UM CHLORIDE 1547 E€ OW2AN 90 € a� • AP[ FLUid,LO5S PAC 164 SAKE APH/HT GF »DESCO41 119 ' � , - ` . - SOLIDS - iA2S 2 /s % OIL/WATER GEL -X 0 s 41,- SAND CITRIC ACID / CARS 778 Po PflhlfAUSTtC StoDA 35 / /a �y CHLORto s 26800 SODDUMBICAR8ONAhEtmrtr .a 91 pH CA BARiTt !NUT PLUG t G SEA1 ; ' - 687 P VOL. P IT - (BBL) Li{lUtt1S { 0 15 hauled } 4746.2 `ESS D + HOLE - (BBL) 370 SOLIDS (BBL t ;AtMM} s- 4282 '� , 1'Y APt SCREEN Daily Vii 0 15676.2 9 Desciri•tion p eta R l/ : L %' y Dal' " l u latixe '. 6:00 9 3.00 Run in hole w mem ory tool, Gr &CCL Tag up @ 9519 RUJ r L z 215.00 9:00 POH W/ Memory To F/ 95 19' CTD. Pu up into well head f ,fs / 122.75 Close master valve Lay down memory to ols and down load a - • 19.00 12:00 3.00 Data confirmed To p o f L at 9617' Memory log good Surveys' r „, 0.00 12:00 Pjsm Pollard wire line R/U RIH attempt to pull SSSV slee Tripping 9 . 00 142.00 n CLU -2 5 attempts W/O success. POH and P/U more change BHA 7.50 bars and accelerator/ Jars RIH Latch up Pull 1600Ibs O/P teeing Crew 75.50 sleeve free. POH L/D sleeve P/U 5.25 sleeve RIH and set Cementin Crew 15.50 15:00 3.00 in SSSV. POH L/D tools. L 3.00 9.50 15:00 22:30 7.50 PJ Make up SJS Guns NU /ND Test 1.50 4 0.50 22:30 0:00 1.50 M/U MHA (drift), fill coil with glycol and test to 4500psi DST /Core 0.00 0:00 1:30 1.50 M/U g uns to coil an R/U injector head we Control 0.00 1:30 4:30 3.0 RIH with g uns(4 intervals listed below) Tag bottom confirm Uns 10 10.50 depth, set on depth @ 9 560.9' Safety Meetings 0.00 4:30 6:00 1.50 Fire guns in interval 5 & 6. Pulling up to depth for 3 -4 I Cilfing Ce m ent 8.50 C /Other 59.75 ,,. . iii /; See • un intervals below TOTAL 2 4.00 7 26.00 GUNS 4spf 4505 PJ Perf interval 1 7710' -7865' Perf interval 2 7960' -8220' Perf interval 3 8240' -8510' Pert interval 4 8640' -8700' Perf interval 5 9400' -9440' Perf interval 6 9500' -9560' TOTAL 845' BHA TOTAL L ENGTH 0.00 7sf;,', ` , DIESEL I' No ac cidents or spills 7" Ca . 0383 b (ID 6.276) Burst 7 240ps i iesel csrt. > a before 300 PJSM's for all jobs 9659' x .0383 = 369.94 bbls Dies used Le 24 1,100 Tem. -28/- 18 1 • ', - j 5,016 Receive 200 bbls I col 4,216 9 Y i ;, , , 1z ON ', COMP NOTE COUNT HOURS TOTAL COMPANY NOTE _ ' COUNT HOURS TOTAL Slumber - J Coil Crew 10 12 120 AI mm Roust /vac 5 12 60 PRA DSM 2 12 _ 24 Pollard Wire line 2 8 16 PRA Safety /PM 1 1 1 AHR Boiler 2 8 16 Weathorford Testing 4 12 _ 48 0 Weaver Bro Fork li 2 12 _ 24 0 0 _ - TOTAL COUNT 28 TOTAL MAN HOURS 309 • CINGSA - DAILY DRILLING REPOR Date: 1/29/2012 Well Name CLU Storage 1 BHA #: Coi118 i ng work DSM .Days John Nicholson �� e nt Dep(h: 966 Loc ation: Ken ai, AK Tar 9661' Celt Phone, (907) 299 -4306 Dean: g /24 Yt hrs, 0 Fietd/Pool: Cannery Loop / Sterling C Rig - schlumberger pigh5M fs: Mike Grubb Contractor: ' , ►r - Since Present ice. Spud operation: 26 /5CMP RIH with guns @ 8323' Rig Phone: (907) 398 -3156 Cell Phone: (509) 431 -7988 ' .; :DATA - .._.. SIZE MFG GRADE TOTAL HOURS :, : BTiHR MFG TYPE SERA JETS .: t3UT ' FEET #DIV /0 = . NG 1 SIZE 1 WEIGHT 1 GRADE 1 THREAD 1 _ DEPTH 1 CEMENT COMPANY I-<DATE 1 w %' ' " 20 133# X -56 Welded 95' N/A July - 13 3/8 68 J -55 BTC -M 2956' SLB 29 -Nov - 9 5/8 40 L -80 BTC -M 7563 SLB 5 -Dec - 7 20 L -80 Vam Top 9659' SLB 12 -Dec ID = 6.276 r, 7 20 L -80 Vam Top 7343' - - .0383 BPF m ,' ,,, Y /7// ;- - lti ,«f;< fir;,,, . ... , .. >, ' ,i , * a +i z i * ` " . AD1 f VIO$ / -/ , Dail Geimutative a„e, '', - .t atatin.:; 0 i ic 420 i .i -t . T`Y , 0 FO ' 5 - :, q 80 I 0 - „r,,,,.: 0 R600/R300 A it ARt =''u4 . 7. 3 - ,,, OK .t E pp 0 R2oo /R1oo t- °t Z "CS ; ' 2332 f 4 - - - 6 /R3 ASPHASOLSUP , E 269 ;7.' ‘; /;,;;;;t , - YP Vii' ASSIUM CHLORY , 1547 GELS SAN 90 a mstii4ot API FLUID LOSS k � 164 = TOTS ,' ,t - CAKE APH /HT '. %i�, 119 " VDP, '; SOLIDS `t GA25 2 ''' it - V€tG': �. � - OILIWATER C . =X 0 s o Ot, %J i rc > >. '' „-+ ... SAND iWlTtr SA,' i-- GARB 778 ..; pis; t '- -77 w PH RESINEX t4R 97 ;'-;, - •l l - Pf1Mf CAUSTIC SODA 35 " k2 r /'„ - `?: - H LORIDES e Ot . 9„ a� , W �� ffi : €d- 91 m, dit - - A,,,,,t,„ r LMT;.„ :' ' 687 � %„ - VOL. PIT - (BBL) HOLE IQUI e` m ® 4746.2 % - (B8L) SC)Ltq = uonu 4282 - �. , -- : a . API SCREEN - m,; 77 ', " i! , 0 15676.2 ' mulative � : .,' ,: . 7., , ': ! - ., ftiOn Detail ' ,:- ``% �1ai 6:00 7:00 1.00 Fire Guns interval #3 -4 8240' to 8700' Confirm guns fired. RU /RD 2.00 217.00 7:00 POH with spent guns on coil F/ 8700' fr eeze protect lines p g ( p Drilling 122.75 and coil prior to poh) - 28DEG. Well stable no loss or gains Service /Repair Rig 19.00 10:30 3.50 0 psi on well head. Stop at 1000' monitor well 30min Surveys 0.00 10:30 13:00 2.50 R/D and remove injector head. Set down on ground frame Tripping 4.00 146.00 13:00 POH Clean up spent guns and lay down all shots fired. 30 Chanie BHA 7.50 18:30 5.50 sections of guns including safetyjts. Casing Crew 75.50 18:30 19:30 1.00 PJSM: Clean up spent guns & load out Cementing Crew 15.50 19:30 20:30 1.00 Unload and arrange live guns. Inspect crane Lodging ', 9.50 20:30 P/U and RIH pert interval #1 -2 (gun run #2) 7710' -8220 set NU/ND Test 2.00 42.50 0:00 3.50 deployment bar. DST /COre 0.00 0:00 1:30 1.50 M/U , R/U and test MHA to 3550 psi (25.5 bbls glycol tube fill) Weft Control 0.00 1:30 2:00 0.50 Bleed pressure & remove test plate. Guns 16.00 26.50 2:00 3:00 1.00 P/U injector head & M/U guns to MHA.R /U injector head. Safety Meetings 0.00 3:00 6:00 3.00 RIH with guns intervals #1- 7710'- 7865', #2-7960'-8220' to Drilling Cement 8.50 8323' Ciro/Ott 59.75 24.00 See qun intervals below TOTAL 24.00 750.00 BOTTOM HOLE ASSEMBLY , „ QTY F ITEM CONN OOWN CONN UP VENO$ 0.00, 50. GAUGE NECK', LENGTH:: TOTAL LEA GUNS 4spf 4505 PJ 1 Perf interval 1 7710' -7865' Perf interval 2 7960' -8220' Perf interval 3 8240' -8510' Perf interval 4 8640' -8700' Perf interval 5 9400' -9440' Perf interval 6 9500' -9560' TOTAL 845' BHA TOTAL LENGTH 0.oa ' REMARKS & COMMENTS DIESEL No accidents or spills. 7" Cap.= .0383 bpf (ID 6.276) Burst 7240psi Diesel on Location day before! 4,216 PJSM's for all jobs. 9659' x .0383 = 369.94 bbls Diesel Used,Las 24 1,700 Temp -28 % sel " eived -,p a>,,,ys ' 1 TOTAL EL : 2,500 ! i PERSONNEL ON LOCAT[C?N;, , ,.o`T ' 4 ,, r'::., COMPANY NOTE COUNT HOURS TOTAL COMPANY NOTE _ COUNT HOURS TOTAL Slumber -J Coil Crew 10 12 120 AIMM Roust/vac 5 12 60 PRA DSM 2 12 24 8 0 PRA Safety /PM 1 1 1 AHR Boiler 2 8 16 Weathorford Testing 4 12 48 0 Weaver Bro Fork lift 2 12 24 0 Slumber -J tcp 2 12 24 0 - TOTAL COUNT 28 TOTAL MAN HOURS 317 to11 apI DRILLING R EPORT fi x,, 1/30/2012 wali Name ! CLU NGSA Storage - 1 DAILY BHA # ! CoiR�ing work DSM Days: J ohn Nicholson �pfh: 9661 Nights: (509) 431 -7988 Location: Kenai, AK d tl e i t 9661' Cell Phone;; (907) 299 4306 • _rr 0 Fra Cannery Loop / Sterling C Rlg schlumberger r COnYr �, 27 /6CMP g RID coil Rig Phone (907) 398 -3156 OSM Mike Grubb Celi Phone � y %� / //r . .471-W if-, TYi JETS I OUT FEET BiT GRADE TOTAL HOURS Fi'rMR - #DIV /0! C ASING IZE X -56 Welded y : S WEIGHT GRAD THR EAD DEPTH CEMEN COMPANY ©�l "J" .' -' o '° • 20 133# 95' N/A July II- Surface' 13 3/8 68 J -55 BTC M 2956' SLB 29 -Nov - {e 9 5/8 40 L -80 BTC-M 7563 SLB 5-Dec L -� 7 20 L - Vam Top 9659' SLB 12 -Dec T 7 20 L -80 Vam Top 7343' - - . w a s °'` PUMP .1 � ( II I�C3ITIUES 1 wily (Gurnlll# are �? P MPMAW 0 vv -I AEG MIJ co t g� 420 T ` �, 3 �5• 0 FU NNEL VIS S. ASH 11 0 r � ,' ., 0 R600fR300 KLA-GUA f;•„ 3 T�, � 0 R230�R100 LOTO77 61ST E # B E 2332 ' r Rs /R3 ASPHAS SUPREt - ' 269 II' r % PV CiJNQt7R 4134 14 tea;; YP CHLORIDE 1547 ,rr I s Gas FLOW AN 90 � , API FLUID I LOSS PAC POTASSIUM 164 r „, ; ,, CAKE SO APHIHT S DESCL} 11 119 :� � / A ",;w LD2 2 �Q OILIWATER GEL-X n a MYACIDEGA 0 ' ,,, SAND CITR ACID / SAFE S 778 F�'" e1 a- P �ti�[EX' 97 Pf Mf CAUSTIC D1UM SODA 35 z'i CHLORIDES S{1 �31CI3E1mNtt�isotf ' '''' CA • LIQUIDS / NL17 AR I L€!G' / G SSAL 687 ` VOL. PIT - {BBL} fLIQUIDS (8$LS hau led) 4746.2 ,, ,� �m . HOLE - (BBL) SOLIDS (BSLSheul 4282 "�� ' �; : ;, , API SCREEN Daily Mud Cum. 0 15676.2 91 AC I IVtTY SIJMMAI � ',`,TIME SUMMARY I*Iriii Hours { Description for Detail 1 D IIy 1 Cumulative 6:00 Set d epth on s @ 8' ' - R D _ 4.50 221.50 7865'), #2 (7990 8220 ') flag Drop 323 ball, ball gun seated intrivals at 45bbls. #1 Drii 122.75 7:00 1.00 Pressure up to 2400psi, Guns fired saw indica off W at surface (7710 4bbls of Service 2epair Rig 19.00 7:00 Monitor well, no flow slight losses. Top hole SLlnre�fs 0.00 9:00 2.00 g lyco l . POH with spent g u n s F 8220' on coil to 300' Trippif 2.00 148.00 9:00 9:30 0.50 Monitor well, hold P f or handling guns Ohange 8HA 7.50 9:30 11:00 1.50 R/U a nd lay down inj he, n BHA. Casing '.+rew ' ' 75.50 11:00 11:30 0.50 Repair crane load cell ector line elflentng C€ 15.50 11:30 15:30 4.00 Lay down spent guns(24) all shots adset fired slips on gun Lg 9.50 15:30 ad ot tne NU Test 42.50 16:30 . 100 B ag L o and u tag spent all guns waste Clean glycol absorbs. up walk evacuate wail 10.00 10.00 16:30 PJSM: Prep for blow down of well ca Install a ng t d j pipe rack ar a et nozzle on e k1„ IND plltrol 0.00 coil. Install injector on IH 00', start N2 @800 : 7.00 33.50 scf, RIH @45fph 1 774.00 . Run weILR T/9570' while evac. Pull u p @ Safety Guns M etn s 0. 0.50 2:30 10.00 15fpm up U7700', p U6600',(returns 341 bbls).POH shut in Drilling f ei nt _ i 8.50 2:30 3:00 0.50 Well bui p ress U 242ps flow to p-tank (no g TOTAL as),shut back in irufOthe 59.75 {t b 06:00 .Di) ] Rigginq down coil t ubing , ' 24.00 774.00 BOTTOM HOLE ASSEMBLY _ /�� a' 7 .. QTY ITEM „CONK DOWN CONK UP VEN O.D. L D . U E ' N % � ; � nTH TO T G LENGTH' GUNS 4spf 4505 PJ Perf interval 1 7710' -7865' Perf interval 2 7960' -8220 _ Perf interval 3 8240' -8510 Perf interval 4 8640' -8700' Perf interval 5 9400' -9440' Perf interval 6 9500' -9560' TOTAL 845' Well pressure increased to 241 psi after shut in for 30 min.. Tried to reflow pressure dropped fast shut back in pressu g ained again eno to flow to p - tank but no gas. P ressure built to 825 psi at arrival of Pollard to pull dummy sleeve and install sssv.Reinstalled sssv and bloc open with 4500 psi, fluid level chec and confirmed at 6840', could not pass 7348' with 5.5 b lind box.SSV also open to mon tubing pressure. Well pressure increased to 1300 psi @ 05:00. BHA TOTAL LEN 0.00 REMARKS & COMMENTS DIESEL No accidents or spills. Diesel en Location daft b efor e 2,500 PJSM's for all jobs Diesel Iii Last 24 1,167 Called AOGCC North Slope and gave notice of pending BOP test ( coil) 20:50hrs 1/29/2012 CLU -2 well Gf ceived BOP Drill with safety joint with guns in wellhead , AL %DI EL 1'3 '. 33 PERSONNEL ON LOCATION „ „, 5 COMPANY NOTE COUNT HOURS TOTAL 2 4 CO MPANY NOTE COUNT HOURS TOTAL Slumber - Coil Crew 10 12 120 AIMM Roust/vac 5 1 2 6 0 PRA DS 2 12 _ 8 0 PRA Safety /PM 1 1 1 AHR Boiler 2 8 16 Weathorford Testing 2 4 48 0 12 0 Weaver Bro Fork lift 12 24 0 Slumber -J Nitrogen 2 12 24 TOTAL COUNT 28 TOTAL MAN HOURS 317 A CINGSA - DAILY DRILLING REPO Date'. 2/4/2012 Well Name CLU Storage 1 BHA #: Coi bing work DEM Days:', John Nicholson Target Current Depth; 9661 Location: Kenai, AK 9661' CellPnone: (907) 299 - 4306 Depth: Ftg/24hrs. 0 Field/Pool: Cannery Loop / Sterling C Rig schlumberger R5M Mike Grubb Contractor: Nights: Spud 27 /6CMP C oi : Draw down test #1 Rig Phone: (907) 398 -3156 Cel Phone: (509) 431 -7988 #DIV /0! C' ,': , i . . SIZE 1 WEIGHT [ GiRAD tc " ,:DAD [ '' DE ''''. Y; , EMENT COMPANY 1 DATE 1 - ,:; :/ 20 133# X -56 Welded 95 N/A July - Stllfact„ ;, 13 3/8 68 J -55 BTC -M 2956' SLB 29 -Nov - ipterreeeii *,.,,f 9 5/8 40 L -80 BTC -M 7563 SLB 5 -Dec - Unat 7 20 L -80 Vam Top 9659' SLB 12 -Dec Tubing ' 7 20 L -80 Vam Top 7343' - - PUMP #1 ,,f4‘ ,,,,, „ ' PUMP #2 MUD PROPERTIES: MUD ADDfTI‘fES: Dal , Cumulative PUMP littANP ;; s, PUMP'MANF,..,. 0 WEIGHT GEL (50 lh bag) 420 PUMP TYPE - PUMP , >., ' 0 FUNNEL VS S,ASFI 50 Ib' « « 0 ";SIZE• . - 0.4Eft • r 0 R600 /R300 NA-GUARD 3 e t aT#i', STOKE LNG "i 0 R2oolR100 LOT 2332 SPM R6/R3 - :%P ASPHASOL S UPREME„ 269 GPS PS ' -..• - PV 14 „ • RR 4D4 GPM PM YP �QRIE E % 1547 PSI GELS 90 TMS UP MIN - T 1)P MIN' - API FLUID LOSS iii %a��i�..., % , . <' 164 TOT CIR MIN - ,,±,%MEN - CAKE APH/HT r Po > / /y% 119 AVfDPa SOLIDS Y ; ,a . 1 2 AVDO A�Wzi -t',, p /L}W GEL % 0 AVDC. "SAND e 1TRIi ... . '- 778 DRIFT: T ` 4:a AULIDS , . PH ,. .; �A .:.nz. 97 $TR s =r/„ - W08 �i - pewit de ' ii 35 PICKF ,,,, - ODIUM r • ?' 91 • SLACK (OFF, ,,,;, - A r - CA %,, , 'ARI ' m EAL , fns 687 w,)( PULt , .. - ; _�� ." - VOL PIT - (BOW Li(l 4746.2 ., > .e.- HOLE (BBL) $OU ' 4282 tt3C1 - q - API SCREEN : . 'i ` ... 0 15676.2 y ' A . , , , i . k . , E,„ r - , , , s „ i' l':'' GTI i T - I T ?, ° " T f. , SFr E SlifinfitlAfY , . flours Descri tion» »- , % * „ r4, . Del Gum 15 :00 Open well up to a 18/64 choke 1600psi. Down to 1380pst » kJ /RC) i 1 4.50 221.50 / 24/64 choke 1380- 1060ps1 26/64 1060 -880 28/64 880-600 ' €€ , i. 122.75 30/64 600 -520. 34/64 520 -400 48/64 400 -280- 0 ' a . ... . ,,, !l^`i 19.00 17:15 .15 Time of drawdown 2hr.15 min ys;,:, 0.00 Rates not recorded fif;j •:` ", 4s �, �,- 2.00 148.00 i' .« ='BHA :. * 7.50 `x.CteiN 75.50 _ =ig rt 15.50 Logging 9.50 NU /Ni' XTTest 42.50 evacu I n 10.00 10.00 Well G. a € .€ '',0:-1. 0.00 Guns 7.00 33.50 Safety Meetings 0.50 0.50 Drilling Cement 8.50 Circ/Other 59.75 '' `OTAL 24.00 774.00 .' 'BOTTOM HOLE ASSEMBLY QTY . ITEM [ CONN DOWN 1 CONN UP j VENDOR 1 0.0. d 1D. I GAUGE j NECK j LENGTH [TOTAL LENGTH BHA TOTAL LENGTH o.00 DIESEL Diesel on'LOCation day before 2,500 Diesel t)sed Last 24 1,167 r Diesel Received ri TOTAL. DIESEL 1,333 PERSONNEL, ON LOCATION ' COMPANY NOTE COUNT HOURS TOTAL COMPANY NOTE COUNT HOURS TOTAL Slumber -J Coil Crew 10 12 120 AIMM Roust/vac _ 5 12 60 PRA DSM 2 12 24 _ 8 0 _ PRA Safety /PNI 1 1 1 AHR _ Boiler _ 2 8 16 Weathorford Testing 4 12 48 0 _ Weaver Bro Fork lift _ 2 12 24 _ 0 Slumber -J Nitrogen 2 12 24 0 TOTAL COUNT 28 TOTAL MAN HOURS 317 • CINGSA - DAILY DRILLING REPOIAL Date: 2/7/2012 Well Name CLU Storage 1 BHA a: a line DSM Days: John Nicholson nt" Target Curra fi ; 96 Lo cation: Kenai, AK E Depth: 9661' Cell Phone': (907) 299 - 4306 Ftg/24hrs, 0 Fiew/Pool: Cannery Loop / Sterling C Rig Pollard tiO,t41 Contractor,' Nights:' Days Since 27 /7CMP Present Wire Line survey Rig Phone:' (907) 398 -3156 Cell Phone:' (509) 431 -7988 Spud Operat 3RILLING DATA k BIT # SIZE MFG TYPE $ER # JETS IN OUT FEET BIT GRADE TOTAL HOURS FT/HR #DIV /0 EASING 1 SIZE 1 WEIGHT 1 GRADE THREAD ] DEPTH 1 CEMENT COMPANY Y 1 DATE 1 • Cam"„ 20 133# X -56 Welded 95' N/A July - ,,; 133/8 68 J -55 BTC -M 2956' SLB 29 -Nov - -- 9 5/8 40 L -80 BTC -M 7563 SLB 5 -Dec 1 7 20 L -80 Vam Top 9659' SLB 12 -Dec ff a ' ''- 7 20 L -80 Vam Top 7343' - - it '-#11 PUMP #2 MUD PROPERTIES: MUD ADDITIVES :: Dai Ctrtl ate PUMP MANE 0 WEIGHT GEL (501bbag) 420 PUMP TYPE 0 FUNNEL VIS S ASH (50 bag) 0 a a te. LINER SIZE 0 R6001R300 KLt . :: 3 +S7'OKEE ,,,, STOKELNGT 0 R200/R100 LO'CRQi776SFEEL LUSE 2332 ° ` - .SPIN - - - RSIR3 ASH'HASOL SUPREME- 269 a - GPS - PV CONGER 404 14 GPM YP POTASSIUM CHLORIi,,E _ 1547 7.4 - P$t - GELS FLOWZAN < 90 Q - -, MS UP MR'4 - API FLUID LOSS PA 164 � - TOT CIR Mtt+i" - CAKE APH /HT AIVNEIMIIIIIIIIIIIIIIN 119 p SOLIDS 1521111111 2 'r t - A 5 - ;` """;; - OIL/WATER GEL-X 0 A ' �4/ - A 3 f!? SAND CITRIC ACID /$AFE;CARB 778 t DRILL STRING YDRAULIOS `' ' ' PH RESINEX.. 97 li « e - WDB �,4 Pf7Mf CAUSTIC SODA ' ' 35 - ;2 �, ; ; - RPM ;' - CHLORIDES SODIUM BICARBONATEftnttabisul; 91 X0. , - TFA - CA BARITE t NUT PLUG (G SEAL , 687 _ kjtip _ VOL. PIT - (BBL) LIQUIDS (8BLS hauled) " 4746.2 - PRESS DROP - HOLE - (BBL) SOLIDS (BBL8 hauled by MM) ' 4282 7 , - JET VEL - API SCREEN - Daily Mud Cum. 0 15676.2 ` n y; %„ A CTIVITY SUMMARY TIME SUMMARY ' ' ; ....... Fin It,, ,; „, .,,, . ,',.:,,,,,.;',',:,-/i--',4,-:-... / Desert ®tion Detail Dal Cumulative: 7:00 PJSM: R/U pollard for wire line Bottom hole pressure and RU/RD ', 4.50 221.50 Fluid level survey. Pump up SSSV to 5000psi Test lubricator Drtiling 122.75 9:30 2.50 to 3500psi Service/Repair Rig 19.00 9:30 Rih W/ memory/ Bottom hole / Fluid level Tool Tool stopped Surveys 0.00 at 7608' unable to pass . POH and lay down tools R/D and Tripping 2.00 148.00 14:00 4.50 Move to CLU -2. Note recovered good data No fluid at 7562 Change BHA 7.50 Bottom hole pressure 1714 Casing Crew 75.50 Cementing Crew 15.50 Loggis9 9.50 NU/ND Test 42.50 evacuate' well 10.00 10.00 Well Control 0.00 Guns 7.00 33.50 Safety Meetings 0.50 0.50 Drilling Cement 8.50 Circ/Other 59.75 b3 ©b 06 :00 30 TOTAL 24.00 774.00 BOTTOM HOLE ASSEMBLY QTY 1 ITEM [ CONN DOWN J CONN UP 1 VENDOR 1 O.D. i ; I.D. 1 GAUGE 1 NECK, J LENGTH 'TOTAL LENGTH BHA TOTAL LENGTH o.00 DIESEL ' Diesel on Location till :before 0 Diesel Used Last 24 0 7 Diessel Recaaived ';'TOTAL DIESEL 0 ICE ,, NN L CI LO /, ' N GATT O =i __ ":., ,, - . COMPANY NOTE COUNT HOURS TOTAL COMPANY NOTE COUNT HOURS TOTAL Pollard Wire Line 4 PRA DSM 1 12 Cingsa Safety 1 12 0 0 0 - TOTAL COUNT 6 TOTAL MAN HOURS 0 diCINGSA - DAILY DRILLING REPO Date: 2/29/2012 Well Name CLU Storage 1 BHA #: a line DSM Days: John Nicholson Target Current : 9661 C Depth Location: Kenai AK 9661' Phone:: (907) 299 -4306 Depth: Ftgl24hrs, 0 Field /Pool: Cannery Loop / Sterling C R ' g Pollard DSM Contractor: phis , , . flos s( 27 /8CMP operation; $ Rig Phone: (907) 398 -3156 pu ll;. Operatio , DRL G a,,,., w - , "./Vii ,i i T,�„.AO A: "' SIZE : : r� ; TYPE SER# JETS IN OUT - . _ BIT GRAM TOTAL HOURS CT/HR #DIV /0! A;SIVili /' SIZE J WEIGHT I GRADE I THREAD I DEPTH T + EMMMENT COMPANY , i . BATE::I onduntor 20 133# X -56 Welded 95' N/A July 13 3/8 68 J -55 BTC -M 2956' SLB 29 -Nov - ' ' =•late 9 5/8 40 L -80 BTC -M 7563 SLB 5 -Dec - fir" ' 7 20 L -80 Vam Top 9659' SLB 12 -Dec `.ukl , j 7 20 L -80 Vam Top 7343' - - PUMP #'l i 7,r ,,��i;, , ► t . ,. - MUD ADDITIVES: Dal Cumulative PUMP MANE', Ml~..:' 0 WEIGHT GEL (90 Ib bag) 420 1,41v;iiia - UM " 0 FUNNEL VIS ' S. ASH 60ib bag) <- 0 :: ' . 0 R600/R300 KLP-AUAR. 3 LNGTH O: 0 R200 /R100 J:1, LUSE 2332 ,t - IPM ?E' - R6/R3 ''` '' P'HASOL'SUPREME 269 . - GPS - PV CONuOR 404 14 i':'';' - to •r, - YP PO T ASSiUM CHLORIDE 1547 9 '" - P ..','; ' - GELS FLOwVAN 90 ', MM6 UP MIN - STMS UP M - API FLUID LOSS PAC 164 di ',CIA MIN - TOT CIR MIN - CAKE APH/HT r s CO II „ 119 VQP AVDP: - SOLIDS MYACIDE GA25 2 AVDC: 6 - Ott. ATER GEL - 0 )'VOC" I/ AVD m"� CIT ACID SAFE CARE 778 DRILL STRING &,,, sl2AULICS , 'm , t sINEK 97 t"' e;' - W08 Pf/MF „ 4#0,10/C('14'1'' '' 35 3 °IGKt 1i; ,,, ii, - RPM - CHLORIDES O{tl::ar 2� ' r '4,a 91 I. '4.44'''.(44',' - TFA - CA 1tARfTtm/ 1 r 687 r I �•R. i,., �' H°vP 1 {C?L. PIT - (BB );, 4746.2 s s i r 0„ , - pittes DROP F - HOLE - (EEL) at ktc. .; ' 4282 ,e ; CO ,,.r,.,, ii• - , JET VFL - API SCREEN - j? P ". < tic., 0 15676.2 ,trs ".A,e tn '7Gflr „x , ACTIVITY SUMMARY , ,, ,i, , I. T '':"' ' ,,, f / . "-Finish ,N . . . ff. , ; Metal ,% , ,., s : umulative 9:00 PJSM: R/U and pull SSSV valve and replace with 3.8 ID RU/Rs ,,,,' .. %. ,:j,,,;',:, 4.50 221.50 13:30 4.50 sleeve. R/D & move out 122.75 16:30 R/U coil unit and all flow lines Move to CL -1 Set Liner & berm Se * a ' ° , s 19.00 19:00 2.50 N/U BOP to well head. Move coil unit in and spot on well. $unrys 0.00 Tripping 2.00 148.00 Chafe BHA 7.50 Casing Crew 75.50 Cementing Crew a °; 15.50 Logging 9.50 NU /ND Test 42.50 evacuate well 10.00 10.00 Well Control 0.00 Guns 7.00 33.50 Safety Meetings 0.50 0.50 Drilling Cement 8.50 Ciro/Other 59.75 70 TOTAL 24.00 774.00 BOTTOM HOLE ASSEMBLY QTY ITEM CONN DOWN CONN UP VENDOR 0.0. LD. GAUGE NECK LENGTH OTAL LENGTH'. I BHA TOTAL LENGTH o.00 , , T n - r . < ;'.DIESEL * ellt • e E `., , a 3,500 l ! ,, 400 , ,,„,,,,;(,,,,),;.2,,,, 2 ..: 3,100 c , , ,,,,,,,,,,,; / i,,,,: / _ //y PERSONNEL ON LOCATION W , , c _: . COMPANY NOTE COUNT HOURS TOTAL COMPANY NOTE COUNT HOURS TOTAL Pollard Wire Line 4 4.5 _ PRA DSM 1 2.5 Cingsa Safety _ 1 2.5 BJ Coil Crew 5 12.5 _ 0 Weaver Bros Fork lift 1 2.5 _ 0 Weatherford Test Crew 2 5 0 - TOTAL COUNT 14 TOTAL MAN HOURS 30 A CINGSA- DAILY DRILLING REPO* Date: 3/2/2012 Well Name CLU Storage 1 BHA #: a line DSM Days:', John Nicholson Target Current Depth: 9661 Location: Kenai, AK 9661' CeSPttnne: (907) 299 - 4306 Depth: Rig ttSIVI Ptg/24hts 0 Field/Pool: Cannery contractor G Loop / Sterling C tra BJ Nights: _ 27 /8CMP Oi�et�tlpn: Rig Phone: (907) 398 -3156 Ceti P xi F l MFG TYPE SER # JETS IN OUT FEET BIT GRADE TOTAL HOURS FT/RR #DIV /0 ;,,,. ''' f IE11EIGHT ( GRADE ] THREAD 1 DEPTH 1 CE - e " „ ",'OMPA(Y 1 DATE m 20 133# X -56 Welded 95' N/A July - - 13 3/8 68 J -55 BTC -M 2956' SLB 29 -Nov I " 9 5/8 40 L -80 BTC -M 7563 SLB 5 -Dec - LeaFN, 7 20 L -80 Vam Top 9659' SLB 12 -Dec Tuging ' , 7 20 L -80 Vam Top 7343' - - MP. #1 P'' PtIlliWfir IMLID PROPERTIES: !MUD ADDITIVES J Daily Cumulative MANP i A 0 [WEIGHT GEL (50 it, hag) 420 ), "t"Yl:'B MI? ,„ " 0 FUNNEL VIS S. ASH (501b bag) 0 �;'.- - Sri'? KLA -GUARD 3 tJNEFt S�. 0 RBOt1/R300 ,• OKE ,' 0 R200IR100' LOTORQ/776/STEEL LUSE 2332 SPV7',2e, - F PM i/ii - R6/R3 � 269 _" /i ,...,.;k, - e -$ ---4A0 - PV CONQOR 404 14 " POTASSIUM CHLORIDE 1547 L PM y YP 2 / s6 M �, SI f GELS e 4 90 s , •ate'; - >t ` , ; - API FLUID LOSS / 6 .' 164 TOTCIR MIN - g'OT CIR MItr CAKE APH/HT 61i � ,, 119 AVLlP V 0P - SOLIDS i v M `. r 'xt , 0 2 AUESO r- i• OILlWATER A AV,W iiiA % y/ A 6 ti. =i,/„ , SAND C ITRIi , ACID / SAFE GARB 778 Tai. ' ULICS PH RESINEX - 97 STRING: s , , , DRILL e ... 4 . ? - f ttMf GAUSTtG i ' ; ' 35 P ' ` - RPM - CHLORIDES SODIUM BioARBDNATE /mrtabisul 91 SGA' + = DA BARITE/ Nil Wit„ w SE 687 MIAAXP ,!...... - z ' "` . - VOL. PIT - (BBL) LIQUIDS -- f8BLS routed) 4746.2 HOLE - (BBL) SOLIDS (BBk 7JedbyAIIUtM)' 4282 i MOD , < , - API SCREEN - Dally Mud Cum. 0 15676.2 0 ) : : S _ iMII A t TIME St1MMAR1f „Start %% gg,; arii < D ata Detail D €I Gumutative 9:30 11:00 1.50 PJSM: Replace combi pump, run N2 lines start heating N2 RU /RD 1 4.50 221.50 11:00 Unable to function main N2 pump troubleshoot not able to (Drilling 122.75 - repair. Shut down operations until pump can be repaired. Service /Repair Rig __ 19.00 - Continue to De mobe storage tanks and ship out R/D $uoveys 0.00 Mixing tank at Aimm and ship to anchorage. BJ returned Tripping 2.00 148.00 with repaired N2 pump. Set in place and run N2 lines to Change BHA 7.50 19:30 10.00 well head. Casing Crew 75.50 _ Cementing Crew 15.50 ;Logging 9.50 NU /ND Test 42.50 evacuate well 10.00 10.00 Well Control 0.00 Move out 400bbI tanks Guns 7.00 33.50 Load out waste KCL and ship to Anchorage 300bbls Safety Meetincfs 0.50 0.50 Return 2 heaters to Alaska heater rentals Drillirtg C tnent , ",, 8.50 R/D and release Weatherford testers Ctf 59.75 ;; s,_., . 24.00 774.00 ' " "' SOTfOM HOLE ^;4.6 i 7Y.% 1:4 ,.�M 1 GONN DOWN [ CONN UP [ VENDOR [ D.D. 1 LD. GAUGE a._ .a, P �; r 'tENGTH TOTAL LENGTH BHA TOTAL LENGTH o.00 m t 1 CIISL Diet pfslote 3,500 °� 400 .t. r1 , : , w,.): 3,100 ..,.> " SONNEL'ON.1Ax:ATIO COMPANY NOTE COUNT HOURS TOTAL COMPANY NOTE COUNT HOURS TOTAL PRA DSM 1 24 Cingsa Safety 1 12 BJ Coil Crew 5 30 0 Weaver Bros Fork lift 1 12 0 Weatherford Test Crew 2 3 0 Aimm Vac 1 8 - TOTAL COUNT 10 TOTAL MAN HOURS 166 • CINGSA - DAILY DRILLING REPORAk Date, 3/1/2012 WeI Name CLU Storage 1 SHA #, Target e line DSM Days:i John Nicholson Ourtnt Depth: 9661 Location= Kenai, AK 9661' Cell Phor ce;' (907) 299-4306 Depth= Frg124hrs. 0 Field/ Poo €: Cannery Loop / Sterling C Rlg BJ iJSM Contractor: Nights: Days Since 27 /8CMP Present Rig Phone: - (907) 398 -3156 Cell Phone: Spud Operation DRILLING DATA BIT # SIZE MFG TYPE. SER # JETS" .., OUT FEET a1T GRAR TOTAL HtaURS rstz #DIV /0! CASI SIZ E.. „.% u y,e } DATA Conductor: 20 133# X -56 Welded 95' N/A July A 13 3/8 68 J -55 BTC-M 2956' SLB 29 Nov ttannediate' 9 5/8 40 L -80 BTC -M 7563 SLB 5-Dec Las-, 7 20 L -80 Vam Top 9659' SLB 12 -Dec 7 20 L - 80 Vam Top 7343' - - .. MUD PUMP #2 MUD PROPERTIES: D lTI� S. Dal Cwnuiiative F �► ', P UMP TYPE 0 FUNNE g E 420 LINER SIZE 1 0 R600/R KLA - GUARD 3 �i �xt % STOKE LNGTH 0 R200IR100 •RQ/778/STEELLV E 2332 Q, �� S Rs/R3 �a <SGL SUPREME 269 ��,.' - ', PV CONQOR Apo 14 GPM Rtfr VP CHLC�IDS tr 1547 S1 - GELS ' ! 90 ®TMSUPMIN . M& -13P � API FLUID LOSS PA ' ; ® N 164 OT CIR MIN - sT CIE 1 - CAKE APH/KT ,?< t✓ t y ii,.,, , 119 AVt3P: AVDP SOLIDS i iYAC ., y 2 AUDC: " OIL/WA"IR GEL X 0 ? $ » oE, ,, SAND CITRIC ACID / SAFE GA6 S 778 - MILL STF t 97 r i x) "T:ti PH 1 Rte VttT %% a , I 't/Mt IG C3DA 35 C fii G i S lif A sbr^f : 91 :-- .pri -;,, ,;;i - 687 VOL. PIT - (BBL) i. :1 IV' 4746.2 w . , w m HOLE - (BBL) sf 6 Y 4282 DCOD ET VEt API SCREEN 0 15676.2 ACTIVITY SUMMARY 7: ,IMMAk % Start Finish Hours Dos : ..tion ICI , .... Gr muliati: 8:00 Complete R/U BJ coil. Blow down well . Well head p 1475 ' - _ 4 221.50 10:00 2.00 Bleed off well pressure through P -tank and Flare WHP 150 i OIi(i ' 122.75 10:00 Test BOP and all related components 250/4000 5min test all �. / 19.00 12:30 2.50 passed. Witness waved by AOGCC Jim Regg. g yd y5 0.00 10:00 P/U injector head and stab into tree. RIH to 5000' Pump NI2 �i . &�, ' 2 148.00 at 500scfm Spot 15bbI soap pill RIH to 8553' displace pill Change BH A 7.50 whitle poh to 7000' RIH Increase N2 rate to 1800scfm to Casirtrevr 75.50 17:30 7.00 8353' Recovered 58 bbl KCL. Pull up to 7300' Pumping N2 Cementing 7 15.50 17:30 18:00 0.50 N2 deck pump. Bring combi pump on line Logging 9.50 18:00 RIH to 8524' Pumping N2 at 1800scfm Wait 10 min, POH 42.50 to 5000' shut N2 down,POH remove injector head. Blow 'g }` �q r � 10.00 10.00 22:00 4.00 down coil Secure location Weil Control . -- 0.00 Guns , 7.00 33.50 f �r Meetings 0.50 0.50 Note WH pressure 335 # at 10: 00 pm Driftetnent 8.50 Circ/Oti�er 59.75 'TOTAL 24.00 774.00 BOTTOM HOLE ASSEMBLY CITY 1 ITEM J.CONN DOWN I CONN UP VENDOR O.D. ' LD. 1 GAUGE I NECK I LENGTH !TOTAL LENGT BH TOTAL H 0.00 D IESEL Diesel on L>a ian uefa LE NGTH 3,500 Di eset Ser! Last 24 400 Diesel Recalved; 1 ,, TOTAi.> 3,100 COMPANY NOTE COUNT HOUR TOTAL COMPANY N COUNT HOURS TOTAL Pollard Wire Line 4 _ 6 PRA DSM 1 24 Cingsa Safety 1 12 - BJ Coil Crew 5 80 0 Weaver Bros Fork lift 1 12 0 Weatherford Test Crew 2 32 0 ' - TOTAL COUNT 14 TOTAL MAN HOURS 166 diiCINGSA - DAILY DRILLING REPOR lik Date: 3/3/2012 well Name CLU Storage 1 BHA # : line DMA Days: John Nicholson Target Current Depth: 9661 Location: Kenai, A K Dept: 9661' Cell Phone (907) 299 Rig Ftg/24hrs, 0 Roia/Pool: Cannery Loop / Sterling C BJ DSM " _ Contrr actor: Nights: Days Since' 27 /RCMP Present Spud Operation: Rig Phone: (907) 398 - 3156 CeII Phone: DRILLING DATA ""; BtT# SIZE MFG TYPE r SER# JETS IN OUT FEET -; BITGRADE TOTAL, 4 175 #DIV /0! CASING ° SIZ :. > : EIGHT GRADE THREAD DEPTH CEMENT COMPANY DATE Ct>t)ductoc "' 20 133# X -56 Welded 95' N/A July 5 13 3/8 68 J -55 BTC -M 2956' SLB 29 -Nov - In a l .. :'c 9 5/8 40 L -80 BTC -M 7563 SLB 5-Dec ;,„ 7 20 L -80 Vam Top 9659' SLB 12 - Dec T€ 7 20 L -80 Vam Top 7343' - - PUMP �'_ ...,., J" PUMP' #2 MUD PROPERTIES: . MUD ADDITIVES: Dal Curttittaiivve PUMP MANF PUMP MANE 0 WEIGHT G EL (5010 0a9) 420 PI`S TYPE PUMP TYPE 0 FUNNEL VIS S. ASttgt lb bag) 0 a y LiisiEi� : LINER SIZE 0 R600/R3D0 ALA GUS 3 t OKE Lt+fGTH STOKE LNGTIi 0 8200/8100 LOTORQf O/STEEL > 2332 SPM - - SPM - Re/R3 ASPHA OL',SUPREM 269 GPB. GPS CONQ08 404 �` 14 'GPM - YP Pt1TRSS � ORI 1547 PSI PSI % GELS " " FLOWZAN `` '; , , 90 BTMS UP MIN BTMS UP MIN ' API FLUID LOSS 164 TI3F" " "CtRlvlttN,,,,.,.. TOTCIRMIN G E'APH/HT CF- DESOOIt 119 �P AViOP. f�LI[SS �fACIDE GA25 2 A AVDC: oIt tIAtA Et GE - 0 �i6 AVDC: AVDC: �/�% CITRIC AC 88 t8 778 r DRILL STRING &'HYDRAULICS PH P fSINEXj 97 PICK LIP RPM $ QDiU I S'QflA 35 '�13tr U1+08 PItMr ODIUM HI�BO 91 SLACK OFF - TFA A B ARITE 1 NUT PLUG €,� 687 VOL P IT - (137ir �L%t QUtDS : (8B $ hauled) a 4746.2 - MJ #I1J HSP HOLE- fBBL) Sc1L1CIS . F s 4282 E CO PRESS''DROP DCOO JETVEL API -"SC�d . - ": lar,:.Daily °_" „ ' '; -„ 0 15676.2 ACTIVITY SUMMARY f%. $UCARY yam : Start, , . Finish ' ,1:Irs D 11I#3 Detaft , Ci ty ..,.>v. cumulative 6:00 PJSM: Warm up N2 pump truck Inspect all lines. Trouble 4 221.50 8:00 2.00 shoot combi pump, repair. Drill'Inc,I , ', ,,,,, - 122.75 8:00 Begin N2 injection at 2500 scfm 344 well head pressure # .r 19.00 Injection flat lined at 445psi. Increase rate to 5000scfm BJ 11146 :r 0.00 having pump problems unable to pump, troubleshoot and Tripplttg = 2.00 148.00 repair. Begin N2 rate of 5000 scfm Max psi 707 then flat lined Change BHA ,__ 7.50 12:00 4.00 shut well in pressure declined to 350psi. Secure Well. Casing Craw 75.50 12:00 R/U BJ coil unit Nipple down BOP and remove from well Celnentiri`- ;Ores; y . 15.50 Ing 9.50 NUJND,Test 42.50 evacuate well 10.00 10.00 Well Control 0.00 Guns 7.00 33.50 Safety Meetings 0.50 0.50 Drilling Cement 80.50 Circ /Other 59.75 '"CTAL 24.00 774.00 BOTTOM HOLE ASSEMBLY QTY _ 1 ITEM GONIV DOWN CONN UP VENDOR O.D. I.D. GAUGE N .� LENGTH TOTAL LENGTH BHA TOTAL LENGTH ESE o.00 i ,.. , , - Die on Cordon d- before Go, sel Dleset Used :.:� :°24 PERSONNEL ON L ©)IITtflI+t COMPANY NOTE COUNT HOURS TOTAL COMPANY NOTE COUNT HOURS TOTAL _ PRA DSM 1 5.5 5.5 . Cingsa Safety 1 _ 12 12 _ - BJ Coil Crew 5 5.5 27.5 0 Weaver Bros Fork lift 1 5.5 5.5 0 0 Weatherford Test Crew 2 0 0 Aimm Vac 1 5.5 5.5 - TOTAL COUNT 11 TOTAL MAN HOURS 56 • t io, Zl/ - /y9 MECHANICAL INTEGRITY REPORT • , • 1. ?UD C: T OLP/ OPER & FIELD C✓ / i C?S4 — 7as Slearc . -,_G R L c _ • /2 /A. //c ELL NUMBER C L L(. S 9-731,14- 4 bk 2.- . E LL DATA TD: .1- TVD ; = BTD : MD TVD Casing: Shoe: MD TVD; DV: I'M TVDi 5.11 __ne= . Shoe: TVD ; TOP : * •ID TVD _ bi Packer ?' TVD; Set at ole Size and ; P to • C"rL N =CAT, INTEGRITY - PART 1 Annulus Press Test: -F /Sdo ; 15 min ; 30 min 7 . - y Ia t6/1t C ar -tent : �; /,4 -'mss & w�, 4a /S� rs2 . ( ._ -� 3odo f ) S` . lar.,.f 5i - ASS . CB NIC ?_I., INTEGRITY - PART #2. `i' t " T•,,f • Cement Volumes :- Amt. Liner � DV . Cs , Cm t -rot to cover perfs "WA t" •f...• ..-4,,.__. Si-"7'` call.,,, 33 73 ' 1st- s = z7C. / S Z,,,�Q r z° r 4.10/5 Theoretical TOC (S -c-r fR.ae. j Fie, s A..- c. p C r,.�6 4 ei- parft Cement Bond Log Yes r No) ; In AOGCC File • O CB Evaluation, zone above erfs CAki treJ 1 ;L h,, CAL. 11 perfs /6 a. 5 'c 6✓- • C Rex s I.- C.✓� h i 5 • K1irLm -a ,,.C.i( lib l L A"`" !, . P- . T � Log: Type w A ; Evaluation CONCLUSIONS: Part fl: M IT- 1 f • 4 6.. t ; -- nt......J.9 i ti. < -� Part T 2: a eh ,Rl �� u. c so 0 _ •,2. 7./2- . s - Cook Intel Nalur:Gas C Inlet Natural Gas Storage Alaska, 3000 Spenard Road PO Box 190989 STORA 907- 4- 99519 0989 Main: Main:907- 334 -7980 Fax:907- 334 -7671 www.cingsa.com February 6, 2012 °, FEB 0 6 2P1 UlaS d 04i & Gas Cans. ;anmissiap Alaska Oil & Gas Conservation Commission An:.jtar& a 333 W. 7 Avenue, Suite 100 Anchorage, Alaska 99501 Re: Cook Inlet Natural Gas Storage Alaska, LLC (CINGSA) Records and Reports Information Acquired from Operations Wells: CLU Storage 1 & CLU Storage 2 #A ron) , 2 4 — > �r Pi .21) In accordance with 20 AAC 25.070(3), CINGSA hereby submits the following records and reports, in electronic format, related to drilling of wells, CLU Storage 1 and CLU Storage 2. 1. Daily Drilling Report - checked 2. Completion Schematic 3. Directional End of Well Report 4. Cementing Recap, Redacted 5. IFE Recap, Redacted 6. NAD27 Final Survey /Directional Data File 7. Certified Surface Location As Built 8. Certified BHL As Built Thank you and if you have any questions, please do not hesitate to contact Tom Arminski at 907 - 334 -7743, or tom .arminski@enstarnaturalgas.com. Sincerely, M. Colleen Starring Vice President Enclosures as stated CANfilG )NII.I.I\t;11(:I IV tX.tX'Y I.TI), 301 EAST 92"°AVENUE,SUITE 2•ANCHORAGE,ALASKA 99515•(907)561-2465•FAX(907)561.2474 ip January 6, 2012 RECE� C0112001 Ms. Christine Mahnken JAN 1 7 2U AOGCC 333 West 7th Avenue Alaska oil&Gas Cons.Commission Anchorage AK 99501 Anchorage Re: Final DML Color Log Prints, Well Reports and Digital Data: CINGSA, CLU Storage 1, Kenai Borough, Alaska Dear Christine: Enclosed with this letter are the Final DML Color Formation logs for the recently drilled CINGSA CLU Storage 1 well. The following data and corresponding number of copies is included as per your instructions. CLU Storage 1 Description Standard Digital Formation Log 2"=100' MD (Color Prints) 1 Standard Digital Formation Log 2"=100' TVD (Color Prints) 1 LWD Lithology Log 2"=100' MD (Color Prints) 1 LWD Lithology Log 2"=100' TVD (Color Prints) 1 Drilling Dynamics Log 2" = 100' MD (Color Prints) 1 Drilling Dynamics Log 2" = 100' TVD (Color Prints) 1 Final Well Reports 1 Final Digital Data on CD ROM (with TIFF Files) N a 9 1 Most sincerely, UC• mes R. Carson Alaska Division Manager Canrig Drilling Technology, Ltd. Received b 1 it 7/1 2- Signature Title Date S hook Inlef Nut ur ►aS Cook Inlet Natural Gas Storage Alaska, LLC 3000 Spenard Road PO Box 190989 si: RA Anchorage, 907-334-7980 99519 -0989 Main 334 -7980 Q$ Q a Fax: 907-334-7671 - www. cingsa. corn January 12, 2012 RECEIVED jAN 0 2 ?_Djf. ;. wi to 041 & Gag L tf3 . `, E7Yniss!0n Anotoroto Alaska Oil & Gas Conservation Commission 333 W. 7 Avenue, Suite 100 Anchorage, Alaska 99501 Re: Cook Inlet Natural Gas Storage Alaska, LLC (CINGSA) Records and Reports Information Acquired from Operations Well: CLU Storage 1 In accordance with 20 AAC 25.070(3), CINGSA hereby submits the records and reports related to drilling of its well, CLU Storage 1. Mud logs and eLogs will be transmitted separately to AOGCC by the end of January 2012. Thank you and if you have any questions, please do not hesitate to contact Tom Arminski at 907 334 -7743 or tom. arminski a enstarnaturalgas.com. Sincerely, 397. � �fa dhWeey M. Colleen Starring Vice President Enclosure as stated . • CLU Storage 1- Well Suspension Report Transmittal Hard Copies 1. CINGSA CLU Storage 1 Well Suspension Report Transmittal Notice 2. AOGCC Well Completion or Recompletion Report and Log Form 10 -407 3. Daily Drilling Reports 4. Mud Recap 5. Directional Report including surveys, plot and section views, and Bit Record 6. Cementing Recap 7. Well Schematic 8. CLU Storage 1 BHL Location Electronic Copies (thumb drive or CD) 1. CLU Storage 1- Daily Drilling Report - Corrected.pdf 2. CLU Storage 1 -11 -20 -2011 Completion Schematic.pdf 3. CLU Storage 1 Directional End of Well Report_Redacted.pdf 4. CINGSA CLU Storage 1 Cementing recap_Redacted.pdf 5. IFE Recap - CLU Storage 1_Redacted.pdf 6. CLU Storage 1 NAD27 Final Survey.xlsx 7. CLU Storage 1 Surface Location As Built.pdf 8. CLU Storage 1 BHL Location.pdf STATE OF ALASKA • ' ALASKA AND GAS CONSERVATION COMMISSION WELL COMPLETION OR RECOMPLETION REPORT AND LOG 1 a. Well Status: Oil ❑ Gas ❑ SPLUG U Other ] Abandoned ❑ Suspended El 1 b. Well Class: GSTOR 20AAC 25.105 20AAC 25.110 Development ❑ Exploratory ❑ GINJ ❑ WINJ ❑ WAG ❑ WDSPL ❑ No. of Completions: Service EI Stratigraphic Test n 2. Operator Name: 5. Date Comp., Susp., or 12. Permit to Drill Number: Cook Inlet Natural Gas Alaska, LLC Aband.: 12/16/2011 211149 3. Address: 6. Date Spudded: 13. API Number: P.O. Box 190989, Anchorage, AK 99519 11/26/2011 50- 133 - 20600 -00 -00 4a. Location of Well (Governmental Section): NAD 27 7. Date TD Reached: 14. Well Name and Number: Surface: 520' FNL 1764 FEL SEC. 9 T5N R11 W 12/10/2011 CLU Storage 1 Top of Productive Horizon: 7527 MD/4926 TVD 8. KB (ft above MSL): 53.5' 15. Field /Pool(s): 1488' FNL 657' FEL SEC. 8 T5N R11 W GL (ft above MSL): 33' Cannery Loop/ Sterling C pool Total Depth: 9661 MD / 5164 TVD 9. Plug Back Depth(MD +TVD): 439' FSL 1530' FEL SEC. 5 T5N R11W 9,617'/5,160' FC 4b. Location of Well (State Base Plane Coordinates, NAD 27): 10. Total Depth (MD + TVD): 16. Property Designation: Surface: x- 281844.6 y- 2393032.28 Zone- 4 9,661'/ 5,164' ADL 391627 TPI: x- 277650.644 y- 2392129.405 Zone- 11. SSSV Depth (MD + TVD): 17. Land Use Permit: Total Depth: x- 276808.652 y- September 30, 8454 Zone- 4 173'/173' ADL 230925 18. Directional Survey: Yes 0 No H 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 20AAC25.071): 22.Re- drill /Lateral Top Window MD/TVD: GRAM,CALM,RPC- SHM- SLM -CLM; BDCM,NPCKSM,DPEM Magtrak - 8 1/2 "only na 23. CASING, LINER AND CEMENTING RECORD WT. PER SETTING DEPTH MD SETTING DEPTH ND AMOUNT CASING GRADE TOP BOTTOM TOP BOTTOM HOLE SIZE CEMENTING RECORD FT PULLED 20" 133 X56 23 115.5 23 115.5 na N/A none 13 3/8" 68 J -55 22 2956 22 2643 16" 231 bbls 12.2 lead / 64 bbls 15.4 tail 9 5/8" 40 L -80 20.5 7563 20.5 4932 12 1/4" 230bbls 12.0 lead / 46 bbls 14.o tail / 2nd stage - 201 bbls 12.0 , ,/ 9 5/8" stage collar @3,373'MD 7" 26 L -80 7343 9659 4882 5164 8 1/2" 74 bbls 14.0 ppg Flexstone • 24. Open to production or injection? Yes ❑ No 0 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) 7" VamTop 26# L80 7353 7343/4882 26. ACID, FRACTURE, CEMENT SQUEEZE, ETC. • - w<4 , V DEPTH INTERVAL (MD) AMOUNT AND KIND OF MATERIAL USED NED None x .� Ea tte . r a;sl., 27. oo - , “" tte PRODUCTION TEST Date First Production: Method of Operation (Flowing, gas lift, etc.): Date of Test: Hours Tested: Production for Oil -Bbl: Gas -MCF: Water -Bbl: Choke Size: Gas -Oil Ratio: Test Period - Flow Tubing Casing Press: Calculated Oil -Bbl: Gas -MCF: Water -Bbl: Oil Gravity - API (corr): Press. 24 -Hour Rate -. 28. CORE DATA Conventional Core(s) Acquired? Yes ❑ No ❑ Sidewall Cores Acquired? Yes ] No If Yes to either question, list formations and intervals cored (MD +TVD of top and bottom of each), and summarize lithology and presence of oil, gas or water (submit separate sheets with this form, if needed). Submit detailed descriptions, core chips, photographs and laboratory analytical results per 20 AAC 25.071. RBDMS JAN 13 2012 Form 10 -407 Revised 12/2009 CONTINUED ON REVERSE /,,•, 4Str only • • 29. GEOLOGIC MARKERS (List all formations and markers encountered): 30. FORMATION TESTS NAME MD ND Well tested? ❑ Yes 131 No If yes, list intervals and formations tested, briefly summarizing test results. Attach separate sheets to this form, if Permafrost - Top NA needed, and submit detailed test information per 20 AAC 25.071. Permafrost - Base Shallow Seismic Marker A10 5882 4182 Top B5 Coal 7466 4914 Sterling Cl Top 7527 4926 Sterling C2 Top 9076 5097 Formation at total depth: Sterling C2 31. List of Attachments: Directional, Cement and Mud Summaries, Daily Drilling Reports, Current Well Schematic, Well Survey 32. I hereby certify that the foregoing is true and correct to the best of my knowledge. Contact: Tom Arminski 907 334 - 7743 Printed Name: M. Colleen Starring Title: Vice President Signature: . Ageewstii GZko .t Phone: 907 277 - 5551 Date: P"/ g INSTRUCTIONS General: This form is designed for submitting a complete and correct well completion report and log on all types of lands and leases in Alaska, Submit a well schematic diagram with each 10-407 well completion report and 10-404 well sundry report when the downhole well design is changed. Item lb: Classification of Service wells: Gas Injection, Water Injection, Water - Alternating -Gas Injection, Salt Water Disposal, Water Supply for Injection, Observation, or Other. Multiple completion is defined as a well producing from more than one pool with production from each pool completely segregated. Each segregated pool is a completion. Item 4b: TPI (Top of Producing Interval). Item 8: The Kelly Bushing and Ground Level elevations in feet above mean sea level. Use same as reference for depth measurements given in other spaces on this form and in any attachments. Item 13: The API number reported to AOGCC must be 14 digits (ex: 50- 029 - 20123- 00 -00). Item 20: Report true vertical thickness of permafrost in Box 20. Provide MD and TVD for the top and base of permafrost in Box 28. Item 23: Attached supplemental records for this well should show the details of any multiple stage cementing and the location of the cementing tool, Item 24: If this well is completed for separate production from more than one interval (multiple completion), so state in item 1, and in item 23 show the producing intervals for only the interval reported in item 26. (Submit a separate form for each additional interval to be separately produced, showing the data pertinent to such interval). Item 27: Method of Operation: Flowing, Gas Lift, Rod Pump, Hydraulic Pump, Submersible, Water Injection, Gas Injection, Shut -in, or Other (explain). Item 28: Provide a listing of intervals cored and the corresponding formations, and a brief description in this box. Submit detailed description and analytical laboratory information required by 20 MC 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 MC 25.071. Form 10-407 Revised 12/2009 I 6 • CINGSA CLU Storage 1 Completion Schematic FMC Wellhead - 13 5/8" 5000# Multibowl 12/ 16/2011 FMC Tree - 7" 5000# complete with SSV ift 104 20" 133# X56 driven to 115.5' TVD /115.5' MD f ,. 7" Halliburton Wireline Retrievable SSSV @ 173' TVD /173' MD $ 0 / r P 13 3/8" 68# J55 BTC Surface Casing @ 2,643' TVD / 2956' MD 16" hole / Cemented to Surface : : : 7" 26# L80 Vam Top Tubing ik ma : , 7" x 9 5/8" Baker ZXP Liner Top Packer with 10' seal bore @ 4,882' TVD / 7,343' MD 9 5/8 40# L80 BTC Intermediate Casing @ 4,932' TVD / 7,563' MD 12 1/4" hole / Cemented to Surface I NO perforations ' 7" 26# L80 Vam Top Production Liner from 4,882' TVD / 7,343' MD TOP to 5,164' TVD /9,659' MD TD 8 1/2" hole / Cemented Actual Wellpath Geographic Report Report Generated 11- Dec -11 at 12:43:03 Projection System NAD83 / TM Alaska SP, Zone 4 (5004), US feet Operator CINGSA (Cook Inlet Natural Gas Storage Alaska) North Reference True Area Cook Inlet, Alaska (Kenai Peninsula) Scale 0.999954 Field Cannery Loop Unit (NAD83) Horizontal Reference Point Slot Facility Gas Storage Pad Vertical Reference Point Nabors 105E (RTE) Slot Slot #1 MD Reference Point Nabors 105E (RTE) Well CLU Storage 1 Field Vertical Reference Mean Sea Level Wellbore CLU Storage 1 Nabors 105E (RTE) to Pad Elevation estimated 53.55 ft Wellpath NaviTrak - OnTrak MWD <206- 9661'> Nabors 105E (RTE) to Mean Sea Level 53.55 ft Wellbore Last Revised 12/06/2011 Pad Elevation estimated to Mud Line (Facility) 0.00 ft Sidetrack from (none) Section Origin X E 0.00 ft User Jonethoh Section Origin Y N 0.00 ft Calculation method Minimum curvature Section Azimuth 281.94° Local North Local East Grid East Grid North Latitude Longitude [ft] [ft] [US ft] [US ft] Slot Location 8782.50 60 °32'38.916 "N 151 °12'50.288 "W Facility Reference Pt !'' k.of .k` ‘'l ' , .::::AM 1412992.83 IMINIEEMIE i 60 °31'52.018 "N IIIMEDZIZIE Field Reference Pt \' ' 2388198.60 60 °31'52.018 "N 151 °15'45.884 "W * NAD 83 coordinates are converted to NAD 27 usin . Corpscon 6.0.1 (US Army Corps of Engineers) TVD from MD Inclination Azimuth TVD Fld Ref North East Grid East Grid North DLS Toolface Build Rate Turn Rate Vert Sect Comments [ft] [`I [°] [ft] [ft] [ft] [ft] [US ft] [US ft] [ft] [ft] [ °I100ft] [°] [ ° /100ft] [ ° /100ft] [ft] 0.00 0.00 maim 0.00 0.00 0.00 1421864.77 MEMO. 281844.596 2393032.279 0.00 - 138.36 0.00 0.00 0.00 206.00 INIMMIONME 206.00 r rENEEMEEN 0.20 -44.90 0.20 0.00 298.00 wizmnimm 297.99EIBEMMEEM 2392793.16 IILICIEEEMINEEMICEMI 0.28 -20.31 0.23 -18.29 MiriENNIEIMI 198.10 382.99 ME4K INIMEME® 2392792.09 0.37 176.20 0.35 -7.89 WEEM MECIIIIIEEMI 350.02 471.98 IIIIECEIMMEMMEIELMIIMEMEE 1.20 _32.06 -0.88 170.70 563.00 MEM 15.73 _ 562.98 WHEWWISIEM 2392792.19 IIIECEMEM 2393030.05 0.65 _22.72 0.63 28.25 0.96 653.00 MI= 22.63 652.97 WIIIM -0.98 'MEM 1421863.76 2392793.46 0.35 -14.58 0.33 7.67 MEEIEM=EM 20.20 740.95 687.40 Ella3M=E11.1111MEMB 2392795.05 MILLMEMIZEIMEIMI 0.23 44.74 MI= -2.76 MICEMIMMIN WHICEMILEME 23.98 830.93 WOMMEMIIIIKEW 1421865.19 2392796.88 M=EMELECEIMEN 0. 167.12 0.10 4.20 WEEMI 926.00 M,EM 241.52 925.92 WOIMIIIWIMMEMWEIZSIE. 2392797.59 ME=MEZEI=11 2.01 -19.22 -0.64 - 149.96 1022.00 =MEI 227.95 _ 1021.89 MEEIMMEMM 2392796.04 ®' 1.74 15.38 1.71 -14.14 1118.00 IllEIEM 233.00 1117.76 WitIMMIMIWZMWE03131. 2392793.05 281839.136 2393030.909 11.96 1.17 5.26 MillME r r 238.24 1213.42 WIMEWUMWEEMIWZMISIM. 2392788.74 1 281832.396 2393026.599 2.81 2.70 2.77 5. INEMINEI 1309.00 9.69 239.24 : 1307.50 WOMMEMIMEM 1421841.26 2392782 19 281821.086 2393020.049 3.76 -0.62 3.76 1.05 1405.00 MUM 239.08 1348.06 WEEMMEIMEMI 1421824.85 2392772 79 281804.676 M=1 3.49 3.96 3.49 -0.17 1500.00 r r 239.82 1493.56 -60.03 1421804.12 2392761 09 [ 281783.946 2392998.949 U ® r®a 1596.00 ME= 241.05 ' 1585.24 IMMENIMEEM -84.79 1421779.10 2392747.52 281758.926 WEEZIMIEMEMMIOEMIMIEEMMIEMMEEEIE 1692.00 20.89 MEDIIIIIINEME 1622.06 =IX= - 113.11 1421750.50 239273239 281730.326 MZEMMIEMMEM r r 1788.00 ®MX r r _- 144.85 1421718.45 2392715.72 281698.276® 8.35 MIUMMMMEIRIEM :: r r ®MEEMIE 1851.88 MOEN -99.95 - 180.12 , 1421682.85 2392697.81 _ 281662.676 11112=IMMEM 1.62 ®orcam1$.1.i. 1980.00 111EZIMMEDMEEMEM 1883.56 ®r - 219.36 1421643.24 2392678.31 281623.066 - 16.19 3.40 r r 2075.00 MIECIMMEMINI 2018.85 1965.30 MEIZEIMEMIN 1421600.15 2392656.32® 13.58 3.40 MUM 226.80 2170.00 NIIMMII 242.19 2098.00 - 308.26EMEIENME:=M 26.54 2.80 =KM 266.87 2267.00 ® 244.10 2176.41 MBEEIMEMEME - 359.21 1421502.06 2392607.41 -2.09 2.40 MIEMMgllEU 2362.00 MMEM 243.93 2250.50 2196.95 EMI. - 412.64 _ 1421448.17 2392582.36® 9.45 3.17 MICOMMEME EMEEMINIZENI 244.69 2322.05 2268.50 - 470.31 1421390.00 IIECEMERME=MEEE=M® -12.38 3.27 MEM 408.95 IIMEEMMIEM 244.08 2389.95 IIIMEMMM - 530.21 1421329.58 2392528.09 M=EMEEES=MEMEM -45.56 2.08 2649.00 MEM 241.38 2456.22 MEM. - 308.01 - 591.92 1421267.29 2392497.39 MECZOSEIMMEEMEMEMECIE -14.39 2.06 11111EIMWM. 2746.00 INIEHIMI 240.10 2519.48 WEEMIIMEM - 656.04 ' 1421202.52 2392462.63 MESEEE5. 2392700.483 MEM 1.69 4.02 ®4EM 2842.00 maim 240.20 2577.77 WEM.IMEE. - 722.19 1421135.69 2392425.90 MIUMMEMEDIMMIMIM 51.99 2.85 MEMEME 2914.00 MZSEM 242.79 2619.24 2565.69 -410.00 - 773.91 1421083.46 2392398.79 IIIECEMEMIIKI=EMIKEINIMIEBEIEMI 2.36 3.60 672.37 3040.00 1111223111 243.89 2689.61 2636.06 -456.89 - 867.32 1420989.21 IIIMEME 280969.037 MEEMMEIEM 0.59 0.87 754.05 WEIMEMICEM 243.74 2741.13 2687.58 MM. - 938.94 1420916.96 2392319.74 ®NIEHMI® r r .116 22 1 242.91 2792.32 �� - 1012.56 1420842.67 2392284.12 280822.497 0.90 0.54 -0 6 8 r r 243.00 2842.15 2788.60 INEMEEM - 1084.60 1420769.97 2392248.68 280749.797 WEEECIMEMEMMEHE -0.09 0.09 944.09 MICEMEMCIM 242.40 1 ' 2891.98 WM. - 602.97 - 1156.47 1420697.42 2392212.91 280677.247 KEZEMEMIZZEI 100.26 0.09 -0.63 1006.74 IIMM.WMEMW301. 2942.34 I®' - 1229.12 1420624.10 2392176.82 , 280603.927 MEE=MMEMIKIIMMEIM 0.69 1070.07 3614.00 IIIRECNIMMEEM 2992.78 WORMIMMIM - 1301.65 1420550.90 2392140.61 280530.728 r r 48.66 -0.91 1133.26 3709.00 MCIEEMMEEEM 3042.63 2989.08 MIME - 1373.23 1420478.63 2392104.30 280458.458 MEEMMIMMIll 31.34 0.13 0.17 1195.51 3805.00 Ma= 242.40 3092.87 IMEEEMIEMEM - 1445.71 1420405.47 2392067.72 • 280385.298 :®r 242.34 0.09 -68.66 0.07 0.05 MEER 3901.00 3143.05 3089.50 � - 1518.22 1420332.28 2392031.11 280312.108 � 0.06 -92.73 0.02 -0.06 MEM 3997.00 MIZEM 241.54 3193.23 3139.68 - 829.99 - 1590.44 1420259.36 2391993.95 EllIMEEREEEKEENEm -87.92 -0.03 r®: 4091.00 Ma= 240.94 3242.37 3188.82 MIEN - 1660.69 1420188.42 2391956.70 93.28 0.02 W,M. 1445.12 4187.00 EKE= 241.82 3292.57 WMEMIIMIM - 1732.52 1420115.88 2391918.84 280095.708 r®: 70.66 -0.04 MEM 1507.28 .MMWZIM 242.02 3341.72 - 1803.22 1420044.51 2391882.44 280024.338 2392120.284 0.19 _ 94.86 0.06 =gm 1568.65 WIRMIIIREM 242.30 3391.88 WEEM - 983.68 - 1875.60 2392083.393 0.25 -76.80 -0.02 wig= 1631.56 11.1=MWMIEM 241.61 3441.43 3387.88 /[1:MEZEIHNI 1419899.21 2391808.77 279879.038 239 46.613 0.64 - 122.68 0.15 1693.66 Page 1 of 2 TVD from MD Inclination Azimuth TVD Fld Ref North East Grid East Grid North DLS Toolface Build Rate Turn Rate Vert Sect Comments [ft] [1 [°1 [ft] [ft] [tt] - - ftT !US ft] [US ft] [ft] [ft] [°l100ft1 [°j [° /100ft1 [ °I100ft] [ft] - 4568.00 58.45 241.28 3491.53 3437.98 - 1060.93 - 2019.06 1419826.58 I 2391770.97 ‘, sovu •.00 4.;atvco o 0.35 90.94 -0.19 -0.34 1755.94 I . 4663.00 58.44 242.26 3541.25 3487.70 - 1099.22 - 2090.38 1419754.57 2391734.00 279734.399 2391971.842 0.88 90.04 -0.01 1.03 1817.80 4759.00 58.44 242.40 3591.49 3537.94 - 1137.21 - 2162.83 1419681.44 2391697.36 279661.269 2391935.202 0.12 68.67 0.00 0.15 1880.82 4855.00 58.48 242.52 3641.71 3588.16 - 1175.04 - 2235.37 1419608.21 2391660.87 279588.039 2391898.711 0.11 85.54 0.04 0.12 1943.97 4951.00 58.51 242.96 3691.88 3638.33 - 1212.53 - 2308.13 1419534.77 _ 2391624.73 279514.599 2391862.571 0.39 - 108.10 0.03 0.46 2007.40 _ 5047.00 58.46 242.78 3742.06 3688.51 - 1249.85 - 2380.97 1419461.26 2391588.77 279441.089 2391826.61 r 0.17 76.93 -0.05 -0.19 2070.95 5143.00 58.56 243.28 3792.20 3738.65 - 1286.98 - 2453.93 1419387.64 2391552.99 279367.469 2391790.83 0.46 - 115.15 0.10 0.52 2134.65 5239.00 58.52 243.18 3842.31 3788.76 - 1323.86 - 2527.04 1419313.86 2391517.47 279293.689 2391755.309 0.10 - 171.75 -0.04 -0.10 2198.55 5334.00 58.11 243.11 3892.21 3838.66 - 1360.38 - 2599.16 1419241.08 2391482.29 279220.909 2391720.129 0.44 -89.13 -0.43 -0.07 2261.56 5429.00 58.12 242.46 3942.39 3888.84 - 1397.27 - 2670.89 1419168.68 2391446.73 279148.509 2391684.568 0.58 61.06 0.01 -0.68 2324.11 ' 5525.00 58.20 242.63 3993.03 3939.48 - 1434.87 - 2743.26 1419095.63 2391410.47 279075.459 2391648.308 0.17 100.34 0.08 0.18 2387.14 5620.00 58.11 243.22 4043.16 3989.61 - 1471.60 - 2815.12 1419023.12 ! 2391375.07 279002.949 2391612.907 0.54 -69.79 -0.09 0.62 2449.84 5717.00 58.22 242.87 4094.32 4040.77 - 1508.95 - 2888.58 1418948.99 2391339.08 278928.819 2391576.917 0.33 93.65 0.11 -0.36 2513.98 5812.00 58.08 246.31 4144.46 4090.91 - 1543.57 - 2961.45 1418875.49 2391305.81 278855.319 2391543.646 3.08 92.10 -0.15 3.62 2578.12 5908.00 58.02 249.63 4195.27 4141.72 - 1574.12 - 3036.94 1418799.45 2391276.67 278779.279 2391514.506 2.93 124.02 -0.06 3.46 2645.66 6004.00 56.18 252.99 4247.43 4193.88 - 1599.97 - 3113.26 1418722.67 2391252.23 278702.499 2391490.065 3.51 93.41 -1.92 3.50 2714.98 6100.00 56.03 259.58 4301.01 4247.46 - 1618.85 -3190.61 1418644.99 2391234.78 278624.819 2391472.614 5.70 91.95 -0.16 6.86 1 2786.75 6196.00 55.99 264.59 4354.70 4301.15 - 1629.80 - 3269.41 1418566.01 2391225.28 278545.839 2391463.113 4.33 87.46 -0.04 5.22 2861.58 6291.00 56.33 270.27 4407.63 4354.08 - 1633.33 - 3348.18 1418487.19 2391223.21 278467.018 _ 2391461.042 4.98 86.92 0.36 5.98 2937.92 - 6388.00 56.81 276.94 4461.11 4407.56 - 1628.23 - 3428.90 1418406.58 2391229.80 278386.408 2391467.631 5.76 83.61 0.49 6.88 3017.95 6484.00 57.75 284.47 4513.05 4459.50 - 1613.22 - 3508.16 1418327.61 2391246.27 278307.437 2391484.099 6.67 80.16 0.98 7.84 3098.60 6579.00 58.74 290.26 4563.08 4509.53 - 1589.11 - 3585.20 1418251.03 2391271.80 278230.856 2391509.627 5.29 81.34 1.04 6.09 3178.96 6675.00 59.72 296.55 4612.23 4558.68 - 1556.34 - 3660.83 1418176.02 2391305.95 278155.845 2391543.775 5.72 75.05 1.02 6.55 3259.73 6771.00 61.16 302.19 4659.62 4606.07 - 1515.39 - 3733.54 1418104.08 2391348.24 278083.904 2391586.063 5.33 67.48 1.50 5.87 3339.34 ' 6866.00 63.01 306.97 4704.11 4650.56 - 1467.74 - 3802.61 1418035.91 2391397.15 278015.733 2391634.971 4.85 68.20 1.95 5.03 3416.77 6961.00 65.03 312.27 4745.75 4692.20 - 1413.29 - 3868.34 1417971.20 2391452.80 277951.022 2391690.619 5.45 67.52 2.13 5.58 3492.34 7057.00 66.98 317.18 4784.81 4731.26 - 1351.58 - 3930.60 1417910.09 2391515.65 277889.911 2391753.467 5.09 63.14 2.03 5.11 3566.02 7152.00 68.94 321.22 4820.47 4766.92 - 1284.93 - 3988.11 1417853.83 2391583.35 _ 277833.649 2391821.164 4.45 55.55 2.06 4.25 3636.07 7248.00 71.12 324.53 4853.26 4799.71 - 1212.99 - 4042.54 1417800.74 2391656.27 277780.558 2391894.082 3.96 60.32 2.27 3.45 3704.20 7344.00 73.49 328.78 4882.45 4828.90 - 1136.60 -4092.77 1417751.92 2391733.57 277731.737 2391971.379 4.89 50.83 2.47 4.43 3769.15 7440.00 76.24 332.22 4907.52 4853.97 - 1055.96 - 4138.38 1417707.81 2391815.03 277687.625 2392052.837 4.49 29.75 2.86 3.58 3830.45 7532.00 79.64 334.19 4926.74 4873.19 - 975.66 -4178.92 1417668.76 2391896.06 277648.574 2392133.865 4.25 1.20 3.70 2.14 3886.73 7620.00 80.58 334.21 4941.85 4888.30 - 897.61 - 4216.65 1417632.48 2391974.79 277612.293 2392212.592 1.07 56.04 1.07 0.02 3939.79 7717.00 81.14 335.05 4957.26 4903.71 - 811.08 - 4257.68 1417593.05 2392062.06 277572.861 2392299.86 1.03 142.48 0.58 0.87 3997.83 7813.00 80.96 335.19 4972.20 4918.65 - 725.05 - 4297.58 1417554.75 2392148.81 277534.56 2392386.607 0.24 -10.35 -0.19 0.15 4054.66 7909.00 82.48 334.91 4986.02 4932.47 - 638.92 - 4337.65 _ 1417516.28 2392235.66 ' 277496.088 2392473.454 1.61 14.91 1.58 -0.29 4111.68 8005.00 84.80 335.53 4996.66 4943.11 - 552.30 -4377.64 1417477.90 2392323.00 277457.707 2392560.792 2.50 56.22 2.42 0.65 4168.72 _ 8100.00 84.96 335.77 5005.13 4951.58 - 466.10 - 4416.65 1417440.48 2392409.90 2392647.689 0.30 54.37 0.17 0.25 4224.72 8196.00 85.11 335.98 5013.44 4959.89 - 378.81 - 4455.74 1417403.01 2392497.89 277382.814 2392735.677 0.27 - 161.39 0.16 0.22 4281.02 8290.00 83.87 335.56 5022.47 4968.92 - 293.49 - 4494.14 1417366.20 2392583.90 277346.003 2392821.684 1.39 171.63 -1.32 -0.45 4336.24 8386.00 83.60 335.60 5032.94 4979.39 - 206.60 - 4533.59 1417328.36 2392671.50 277308.161 2392909.281 0.28 126.52 -0.28 0.04 4392.81 8483.00 83.35 335.94 5043.97 4990.42 - 118.72 - 4573.14 1417290.43 2392760.09 277270.23 2392997.869 0.43 -17.86 -0.26 0.35 4449.68 8579.00 84.06 335.71 5054.49 5000.94 -31.67 - 4612.22 1417252.97 2392847.84 277232.768 2393085.616 0.78 135.17 0.74 -0.24 4505.92 8675.00 83.84 335.93 5064.61 5011.06 55.42 - 4651.32 1417215.48 2392935.64 277195.277 2393173.414 0.32 -21.44 -0.23 0.23 4562.19 8771.00 84.55 335.65 5074.32 5020.77 142.53 - 4690.49 1417177.93 2393023.45 277157.726 2393261.221 0.79 0.00 0.74 -0.29 4618.53 8867.00 85.07 335.65 5083.01 5029.46 229.63 - 4729.91 1417140.13 2393111.26 277119.924 2393349.028 0.54 -1.14 0.54 0.00 4675.11 8963.00 85.57 335.64 5090.84 5037.29 316.79 - 4769.36 F1417102.29 2393199.13 277082.083 2393436.895 0.52 151.57 0.52 -0.01 4731.75 9058.00 85.11 335.89 5098.56 5045.01 403.14 - 4808.23 1417065.02 2393286.17 277044.811 2393523.933 0.55 - 143.47 -0.48 0.26 4787.63 9154.00 84.68 335.57 5107.10 5053.55 490.30 - 4847.53 1417027.34 2393374.04 277007.13 2393611.8 0.56 154.85 -0.45 -0.33 4844.11 9250.00 83.01 336.36 5117.39 5063.84 577.47 - 4886.41 1416990.08 2393461.91 276969.868 2393699.667 1.92 -69.92 -1.74 0.82 4900.18 9346.00 83.25 335.70 5128.87 5075.32 664.56 - 4925.13 1416952.97 2393549.69 276932.757 _ 2393787.445 0.73 - 132.20 0.25 -0.69 4956.08 AI 9441.00 83.07 335.50 5140.19 5086.64 750.46 - 4964.09 1416915.60 2393636.29 276895.386 2393874.042 0.28 - 152.11 -0.19 -0.21 5011.97 9538.00 82.92 335.42 5152.02 5098.47 838.04 - 5004.08 1416877.24 2393724.59 276857.024 2393962.339 0.17 15.22 -0.15 -0.08 5069.20 9602.00 84.09 335.74 5159.26 5105.71 895.94 - 5030.37 1416852.03 2393782.96 276831.813 2394020.707 1.89 0.00 1.83 0.50 5106.90 9661.00 85.85 335.74 5164.43 5110.88 949.52 - 5054.52 1416828.87 2393836.98 276808.652 2394074.726 2.98 0.00 I 2.98 0.00 I 5141.61 I Projected Data - NO SURVEY Page 2 of 2 ■ CINGSA - DAILY DRILLING REPORT Date: 11/21/2011 well Name 4,1 Storage 1 BHA #: • DSM Days: John Nicholson Current Depth: 115' Location: Kenai, AK Tar 8577 Cell Phone: (907) 299 -4306 Depth: ig DSM Ftg /24hrs. 0 Field/Pool: Cannery Loop / Sterling C convector: Nabors Alaska -Rig 105 E Nigh s: Stephen Ratcliff Days Since Present R/D move to CLU 1 Rig Phone: (907) 398 -3156 Cell Phone: (281) 914 -6250 Spud Operation: DRILLING DATA BIT # SIZE MFG TYPE SER # JETS IN OUT FEET BIT GRADE TOTAL HOURS FT/HR #DIV /0! CASING 1 SIZE WEIGHT GRADE THREAD DEPTH CEMENT COMPANY DATE - Conductor. 20" 133# _ X -56 Welded 95' N/A July - Surface: - Intermediate - Liner - Tubing - PUMP #1 PUMP #2 MUD PROPERTIES: MUD ADDITIVES: Daily Cumulative PUMP MANF Gardner Denver PUMP MANF Gardner Denver WEIGHT GEL (50 Ib bag) 0 PUMP TYPE PZ -9 PUMP TYPE PZ - FUNNEL VIS S. ASH (50 lb bag) 0 LINER SIZE 6 LINER SIZE 6 R600/R300 KLA -GUARD _ 0 STOKE LNGTH 9 STOKE LNGTH 9 R200/R100 LOTORQ /776 0 SPM - SPM - R6/R3 ASPHASOLSUPREME 0 GPS - GPS - PV CONQOR 404 0 GPM - GPM - YP POTASSIUM CHLORIDE 0 PSI - PSI - GELS FLOWZAN 0 BTMS UP MIN - BTMS UP MIN - API FLUID LOSS PAC _ 0 TOT CIR MIN - TOT CIR MIN _ - CAKE APH /HT CF -DESCO II _ 0 AVDP: _ AVDP: SOLIDS MYACIDE GA25 0 AVDC: AVDC: OIL/WATER GEL -X 0 AVDC: AVDC: SAND CITRIC ACID 1 SAFE CARB 0 DRILL STRING & HYDRAULICS PH RESINEX 0 STRING WT. - WOB - Pf /Mf CAUSTIC SODA 0 PICK UP _ - RPM - CHLORIDES SODIUM BICARBONATE /mrtabisulf 0 SLACK OFF - TFA - CA BARITE / NUT PLUG / G SEAL 0 MAX PULL - HSP - VOL. PIT - (BBL) LIQUIDS 0 ECD - PRESS DROP _ - HOLE - (BBL) SOLIDS (BBLS hauled by AIMM) 0 DCOD - JET VEL - API SCREEN Daily Mud Cum. 0 0 ACTIVITY SUMMARY TIME SUMMARY Start I Finish 1 Hours j Description Detail I Daily 1 Cumulative 12:00 6:00 18.00 R/D dog house wind walls, rig floor wind walls, and remove RU /RD 18.00 18.00 pipe shed side wind walls. Remove pipe shed. R/D top drive Drilling 0.00 and set on shipping pins. Unpin blocks and remove top Service /Repair Rig 0.00 drive with crane. Clear rig floor. Prep derrick for scope Surveys 0.00 down. Remove electrical and lights. Blow down lines with Tripping 0.00 water and steam. R/D service loop. Rig up bridle and Change BHA 0.00 scope down derrick sections. And lay down. Blown boilers Casing Crew 0.00 and steam lines. R/D innerconnects mud pits and mud Cementing Crew 0.00 Remove pits from rig. Logging 0.00 NU /ND Test 0.00 DST /Core 0.00 Well Control 0.00 W OC 0.00 Safety Meetings 0.00 Drilling Cement 0.00 Circ /Other 0.00 18.00 SEE REMARKS & COMMENTS BELOW TOTAL 18.00 18.00 BOTTOM HOLE ASSEMBLY QTY I ITEM FCONN DOWN CONN UP VENDOR GA I NECK I LENGTH TOTAL LENGTH == =- 0.00 0.00 0.00 0.00 -_ -- 0.00 0.00 #REF! #REF! #REF! #REFI #REF! #REF! BHA TOTAL LENGTH 0.00 REMARKS & COMMENTS DIESEL No accidents or spills. Diesel on Location day before 1,268 Diesel Used Last 24 _ 431 Diesel Received 1,727 TOTAL DIESEL 2,564 PERSONNEL ON LOCATION COMPANY NOTE COUNT HOURS TOTAL COMPANY NOTE COUNT HOURS TOTAL Nabors Rig Crew 24 12.5 300 0 _ PRA DSM 2 24 48 _ 0 PRA Safety 1 1 1 0 Aimm Vac _ 2 12 24 _ 0 MI Swaco Dewatering 2 12 24 0 Peak Rig Move _ 10 12 120 0 0 - - TOTAL COUNT 41 TOTAL MAN HOURS 517 FROM TO LENGTH JOINT DESCRIPTION 2 1Z G/L 95' 95 Welded 20" 133# X -56 Welded Conductor Pipe r CIiGSA - DAILY DRILLING REPORT Date: 11/22/2011 Well Name �� Storage 1 BHA #: • DSM Days: John Nicholson Current Depth: 115' Location: Kenai, AK Tar 8577 Cell Phone: (907) 299 - 4306 Depth: Ftg /24hrs. 0 Field /Pool: Cannery Loop / Sterling C ContRractor: Nabors Alaska -Rig 105 E N DSM Stephen Ratcliff Days Since 0 Present R/U for CLU 1 Rig Phone: (907) 398 -3156 Cell Phone: (281) 914 -6250 Spud Operation: DRILLING DATA BIT # SIZE MFG TYPE SER # JETS IN OUT FEET BIT GRADE TOTAL HOURS FT /HR #DIV /0! CASING 1 SIZE 1 WEIGHT 1 GRADE - 1 . THREAD L _ DEPTH 1 CEMENT COMPANY 1 DATE 1 - Conductor: 20" 133# X -56 Welded 95' N/A July - Surface: - Intermediate - Liner - Tubing 1 - PUMP #1 PUMP #2 [MUD PROPERTIES: MUD ADDITIVES: 1 Daily 1Cumulative PUMP MANF Gardner Denver PUMP MANF Gardner Denver WEIGHT GEL (50 Ib bag) 0 PUMP TYPE PZ -9 PUMP TYPE PZ -9 FUNNEL VIS S. ASH (50 lb bag) 0 LINER SIZE 6 LINER SIZE 6 Ft600 /R300 KLA -GUARD 0 STOKE LNGTH 9 STOKE LNGTH 9 Ft200 /R100 LOTORQ /776 0 SPM - SPM _ R6 /R3 ASPHASOL SUPREME 0 GPS - GPS PV CONQOR 404 0 GPM - GPM - YP POTASSIUM CHLORIDE 0 PSI - PSI GELS FLOWZAN 0 BTMS UP MIN - BTMS UP MIN -_ API FLUID LOSS PAC 0 TOT CIR MIN - TOT CIR MIN - CAKE APH /HT CF -DESCO II 0 AVDP: AVDP: SOLIDS MYACIDE GA25 0 AVDC: AVDC: _ OIL/WATER GEL -X 0 AVDC: AVDC: _ SAND CITRIC ACID / SAFE GARB 0 DRILL STRING & HYDRAULICS _ PH RESINEX 0 STRING WT. - WOB _ Pf /Mf CAUSTIC SODA 0 PICK UP - RPM -_ CHLORIDES SODIUM BICARBONATE /mrtabisulf 0 SLACK OFF - TFA CA BARITE / NUT PLUG / G SEAL 0 MAX PULL - HSP - VOL. PIT - (BBL) LIQUIDS 0 ECD - PRESS DROP HOLE - (BBL) SOLIDS (BBLS hauled by AIMM) 0 DCOD - JET VEL API SCREEN Daily Mud Cum. 0 0 ACTIVITY SUMMARY 1 TIME SUMMARY Start 1 Finish 1 Hours I Description (Detail 1 Daily 1 Cumulative 6:00 18:00 12.00 Continue r move, Un string drawworks, Set crown and bloc RU /RD 24.00 42.00 on rear sub frame. Crane down A legs and lower section of Drilling 0.00 mast. Crane down rig floor dog houses. Move out water Service /Repair Rig 0.00 and lower mud pit sections. Shoot and level pad around well Surveys 0.00 18:00 6:00 12.00 Move out VFD unit, Move out Generators and boiler units, Tripping 0.00 move out #1 & #2 mud pumps. Remove crown and drilling Change BHA 0.00 line spool stack with crane. Move out sub base. Clear Casing Crew 0.00 area from CLU 2. Remove all matting boards. Pull up Cementing Crew 0.00 herculite. Grade pad level and roll out new herculite around Logging 0.00 CLU -1 well. Set matting boards. Position and set sub base NU /ND Test 0.00 over CLU -1. Set crown and drilling line spool stack with DST /Core 0.00 crane. Set #1 and #2 mud pumps. Well Control 0.00 _ WOC 0.00 Safety Meetings 0.00 Drilling Cement 0.00 Circ /Other 0.00 24.00 SEE REMARKS & COMMENTS BELOW TOTAL 24.00 42.00 BOTTOM HOLE ASSEMBLY QTY 1 ITEM 1 CONN DOWN I_ CONN UP = VENDOR 1 O.D. I I.D. I GAUGE I NECK I LENGTH ITOTAL LENGTH 0.00 0.00 0.00 0.00 0.00 #REF! #REFI #REF! #REF! #REF! #REF! #REF! BHA TOTAL LENGTH 0.00 REMARKS & COMMENTS DIESEL No accidents or spills. Hold PJSM on all critical crane picks. Discuss cold weather conditions. Diesel on Location day before 2,564 Diesel Used Last 24 502 _ Diesel Received TOTAL DIESEL 2,062 1 PERSONNEL ON LOCATION COMPANY NOTE COUNT HOURS TOTAL COMPANY NOTE COUNT HOURS TOTAL Nabors Rig Crew 24 12.5 300 - 0 PRA _ DSM _ 2 _ 24 48 0 PRA Safety _ 1 1 1 - 0 _ Aimm Vac 2 12 24 0 _ MI Swaco _ Dewatering__ 2 12 24 - 0 Peak Rig Move _ 10 12 120 0 0 - TOTAL COUNT 41 TOTAL MAN HOURS 517 FROM TO LENGTH JOINT DESCRIPTION G/L 95' 95' Welded !20" 133# X -56 Welded Conductor Pipe SA - DAILY DRILLING REPORT • Date: 11/23/2011 Well Name CLU Storage 1 BHA #: DSM Days: John Nicholson Current Depth: 115' Location: Kenai, AK Tar 8577 Cell Phone: (907) 299 - 4306 Depth: Ftg /24hrs. 0 Field /Pool: Cannery Loop / Sterling C Rig Nabors Alaska - Rig 105 E DSM Stephen Ratcliff Contractor: Nights: Days Since 0 Present R/U mast CLU - Rig Phone: (907) 398 - 3156 Cell Phone: (281) 914 - 6250 Spud Operation: DRILLING DATA BIT # SIZE MFG TYPE i SER # JETS IN OUT FEET BIT GRADE TOTAL HOURS FT/HR #DIV /0! CASING SIZE WEIGHT GRADE THREAD DEPTH 1 CEMENT COMPANY DATE - Conductor: 20" 133# X -56 Welded 95' N/A July - Surface: Intermediate Liner Tubing 1 1 - PUMP #1 PUMP #2 [MUD PROPERTIES: MUD ADDITIVES: Daily Cumulative PUMP MANF Gardner Denve PUMP MANF Gardner Denver WEIGHT GEL (50 Ib bag) 0 PUMP TYPE PZ -9 PUMP TYPE PZ -9 _ FUNNEL VIS _ S. ASH (50 Ib bag) 0 LINER SIZE 6 LINER SIZE 6 _ R600 /R300 KLA -GUARD 0 STOKE LNGTH 9 STOKE LNGTH 9 R200 /R100 LOTORQ /776 0 SPM - SPM - R6 /R3 ASPHASOLSUPREME 0 GPS - GPS - PV CONQOR 404 0 GPM - GPM - YP POTASSIUM CHLORIDE 0 PSI - PSI - GELS FLOWZAN 0 BTMS UP MIN - BTMS UP MIN - API FLUID LOSS PAC 0 TOT CIR MIN - TOT CIR MIN - _ CAKE APH /HT CF -DESCO II _ 0 AVDP: AVDP: SOLIDS MYACIDE GA25 _ 0 AVDC: AVDC: OIUWATER GEL -X 0 _ AVDC: AVDC: SAND CITRIC ACID / SAFE CARE 0 DRILL STRING & HYDRAULICS PH RESINEX 0 STRING WT. f - WOB - Pf /Mf CAUSTIC SODA 0 PICK UP - _ RPM - CHLORIDES SODIUM BICARBONATE /mrtabisulf 0 SLACK OFF - TFA - _ CA BARITE / NUT PLUG / G SEAL 0 MAX PULL - _ HSP - VOL. PIT - (BBL) LIQUIDS 0 ECD - PRESS DROP HOLE - (BBL) SOLIDS (BBLS hauled by AIMM) 0 DCOD - JET VEL - API SCREEN Daily Mud Cum. 0 0 ACTIVITY SUMMARY 1 TIME SUMMARY Start Finish ■ Hours Description Detail Daily Cumulative 6:00 _ 18:00 12.00 Set water tank and break room. Set Generators and VFD RU /RD 24.00 66.00 units. Set lower section mud pits. Crane up Dog houses. Drilling _ 0.00 _ Set shaker/ pit units. Crane up air compresser unit. Service /Repair Rig 0.00 Start Stand by generator. Set Fuel tank . Crane up Starting Surveys - 0.00 Section of mast and pin to floor Start running innerconnects Tripping _ 0.00 Between rig modules. Run control lines to drillers doghouse Change BHA - _ 0.00 Take on hot water and fire the boilers. Casing Crew 0.00 18:00 6:00 12.00 Rig up and pull electrical lines to drawworks. Hook up mud Cementing Crew 0.00 lines. Plumb hydraulic lines. Rig up and set crown section Logging 0.00 - on A -Legs. Rig up and slip 4 rows of drilling line on drum NU /ND Test 0.00 _ and install dead man. Install horse heads on top of A -Legs DST /Core 0.00 for fall arrest. Raise first section of mast with crane. Work Well Control 0.00 on interconnects through out rig modules. WOC 0.00 _ Safety Meetings _ 0.00 Drilling Cement _ 0.00 Circ /Other 0.00 24.00 SEE REMARKS & COMMENTS BELOW TOTAL 24.00 66.00 BOTTOM HOLE ASSEMBLY QTY ITEM CONN DOWN CONN UP I VENDOR 1 O.D. I I.D. I GAUGE I NECK LENGTH ITOTAL LENGTH 0.00 0.00 0.00 #REF! #REF! #REF! #REF! #REF! #REF! #REF! BHA TOTAL LENGTH o.00 REMARKS & COMMENTS DIESEL No accidents or spills. Diesel on Location day before 2,062 Diesel Used Last 24 282 Clean up area on south side of pad, wood, plywood and Duck ponds _ Diesel Received Called AOGCC Jim Regg, and gave notice of Diverter Function test 11/22/11 14:15 hrs. TOTAL DIESEL 1,780 PERSONNEL ON LOCATION COMPANY NOTE COUNT HOURS TOTAL COMPANY NOTE COUNT HOURS TOTAL Nabors Rig Crew 24 12.5 300 _ _ 0 PRA DSM 2 24 48 _ _ 0 PRA Safety 1 1 1 0 Aimm Vac _ 2 12 24 0 MI Swaco Dewatering 2 12 24 0 Peak Rig Move _ 10 12 120 0 , - 0 - TOTAL COUNT 41 TOTAL MAN HOURS 517 FROM TO LENGTH JOINT DESCRIPTION G/L 95' 95' Welded 20" 133# X -56 Welded Conductor Pipe -1 SA - DAILY DRILLING REPORT — D. 1 Storage 1 BHA #: DSM Days: John Nicholson Current • Kenai, AK Tar Cell Phone: (907) 299 -4306 Depth: 1 Field /Pool: Cannery Loop / Sterling C Ri g Nabors Alaska-Rig 1 DSM Stephen Ratcliff Contractor: Nights: Days Since 1 •�. Set pipe sheds Rig Phone: (9 07) Cell Phone: (281) 914 -6250 S.ud DRILLING DATA BIT # SIZE ® T ® JETS IN OUT ■ FEET BIT GRADE TOTAL 1 CASING SIZE WEIGHT GRADE THREAD DEPTH CEMENT COMPANY DATE Conductor: 1 • • 95' N/A Surface: - Intermediate MEM - Liner - Tubing • PUMP #1 PUMP #2 MUD PROPERTIES: MUD ADDITIVES: Dail Cumulative PUMP MANF Gardner Denve PUMP MANF Gardner Denver II 0 PUMP TYPE. PZ - PUMP TYPE _ PZ - • 1 SIZE LINER _ 6 LINER SIZE 6 0 1 1 STOKE 9 STOKE LNGTH 9 - • • ' • • ijjiuIill1IB •' • • 1 SPM - SPM 1 GPS • • - 404 1 GPM GPM YP POTASSIUM CHLORIDE 1 PSI - PSI - GELS FLOWZAN 1 BTMS UP MIN - BTMS UP MIN - API FLUID LOSS PAC 0 TOT CIR MIN - TOT CIR MIN - CAKE APH /HT CF-DESCO II 0 AVDP: AVDP: SOLIDS MYACIDE GA25 0 AVDC: AVDC: OIUWATER 1 AVDC: AVDC: SAND 1 1 DRILL. STRING & HYDRAULICS PH 1 STRING WT. - WOB - Pf /Mf •1' • PICK UP - RPM CHLORIDES SODIUM BICARBONATE/mrtabisulf 0 SLACK OFF - TFA - CA MAX PULL - HSP - VOL. PIT - (BBL) LIQUIDS 1 ECD - PRESS DROP - HOLE - (BBL) SOLIDS (BBLS hauled by 1 DCOD - JET VEL - API SCREEN Daily Mud Cum. 0 • ACTIVITY SUMMARY TIME SUMMARY Start Finish 1 Hours 1 Description Detail Dail . Cumulative 6:00 18:00 12.00 Continue rig up on CLU -1. Install # 3 mast section. Set : • 24.00 90.00 racking board and pin to mast. Set stabbing board in mast Drillin. 0.00 P/U top drive and mount to rails in mast. Continue with Service /Re•air Ri• 0.00 innerconnects between modules. Install service loop to Surve s 0.00 top drive. Crane up wind wall, back of sub. Set MVVD,Canrig • sins 0.00 and MI units. Charlie BHA 0.00 • 1 6:00 12.00 Work on interconnects between rig modules. Complete l ol• Crew 0.00 rig up of service loop to top drive. Tie windwalls together • Crew 0.00 and install. Hook up mud lines. Set kelly hose. Set choke Los • • 0.00 MI house and gas buster in place. Secure rig floor wind walls. • Test 0.00 Terminate electrical in derrick. Set diverter spool on well • 0.00 head and annular. Set matting boards for Pipe shed Control 0.00 Pick up pipe shed units and set in place. • 0.00 Safet • • 11 Drillin• Cement 0.00 III . • - 0.00 24.00 SEE REMARKS & COMMENTS BELOW • 11 90.00 BOTTOM HOLE ASSEMBLY QTY ITEM CONN DOWN CONN UP 1 VENDOR O.D. I.D. GAUGE NECK LENGTH TOTAL LENGTH 0.00 � 0.00 0.00 0.00 #REFI #REFI 1 BHA TOTAL LENGTH 0.00 REMARKS & COMMENTS DIESEL No accidents or spills. Diesel Location • M Release trucks and cranes 05:30 hrs 11 -24 -11 _ 1 ' Install tree on CLU - 2 Diesel Received 15,199 Jim Regg AOGCC waved witness for Diverter function test 16:30hrs 11 -23 -11 TOTAL DIESEL PERSONNEL ON LOCATION �� • • NOTE • HOURS TOTAL •. . 11 Cin • sa Rick/ Bill 2 1 PRA DSM 2 24 48 Weaver • Truckin• 1 2 Sand location 1 1 Aimm Vac 1 1 1 Alaska waste Trash/ Se•tic 2 1 MI Swaco ABW • - • 1 1 TOTAL COUNT 45 TOTAL MAN HOURS 501 FROM TO LENGTH JOINT _ DESCRIPTION G/L 95' 95' Welded 20" 133# X -56 Welded Conductor Pipe C SA - DAILY DRILLING REPORT Date: 111251 Well Name Storage 1 BHA #: DSM Days: John Nicholson g Current Depth: 115' Location: Kenai, AK Tar 8577 Cell Phone: (907) 299 - 4306 Depth: Ftg /24hrs. 0 Field /Pool: Cannery Loop / Sterling C ContRractor: Nabors Alaska -Rig 105 E DSM : Mike Grubb Days Since 0 Present Nipple up diverter Rig Phone: (907) 398 -3156 Cell Phone: (509) 431 -7988 Spud Operation: DRILLING DATA BIT # SIZE MFG TYPE SER # JETS IN OUT FEET BIT GRADE TOTAL HOURS FT /HR #DIV /0! CASING SIZE WEIGHT GRADE THREAD DEPTH CEMENT COMPANY DATE - Conductor: 20" 133# X -56 _ Welded 95' N/A July - Surface: Intermediate _ _ - Liner - - Tubing 1 PUMP #1 PUMP #2 MUD PROPERTIES: MUD L Daily Cumulative PUMP MANF Gardner Denver PUMP MANF _ Gardner Denver WEIGHT GEL (50 Ib bag) 0 PUMP TYPE PZ - PUMP TYPE PZ - FUNNEL VIS S. ASH (50 lb bag) 0 LINER SIZE 6 LINER SIZE 6 R600 /R300 KLA -GUARD 0 STOKE LNGTH 9 STOKE LNGTH 9 R200 /R100 LOTORQ /776 0 SPM _ - SPM - R6 /R3 _ ASPHASOLSUPREME 0 GPS - GPS - PV _ CONQOR 404 0 GPM - GPM - YP POTASSIUM CHLORIDE 0 PSI - PSI _ - GELS FLOWZAN 0 _ BTMS UP MIN - BTMS UP MIN - API FLUID LOSS PAC 0 TOT CIR MIN _ - TOT CIR MIN - CAKE APH /HT CF -DESCO II 0 AVDP: _ _ AVDP: _ SOLIDS MYACIDE GA25 0 AVDC: _ AVDC: OIL/WATER GEL -X 0 AVDC: AVDC: SAND CITRIC ACID / SAFE CARB 0 DRILL STRING & HYDRAULICS PH RESINEX 0 STRING WT. - _ WOB _ Pf /Mf CAUSTIC SODA 0 PICK UP - RPM - CHLORIDES SODIUM BICARBONATE /mrtabisulf _ 0 SLACK OFF _ TFA - CA BARITE / NUT PLUG / G SEAL 0 MAX PULL - HSP - VOL. PIT - (BBL) LIQUIDS 0 ECD _ - PRESS DROP - HOLE - (BBL) SOLIDS (BBLS hauled by AIMM) 0 DCOD - JET VEL - API SCREEN Daily Mud Cum. 0 0 ACTIVITY SUMM TIME SUMMARY Start 1 Finish 1 Hours 1 Descri.tion Detail Daily Cumulative 6:00 18:00 _ 12.00 Level end unit of the pipe shed. Load pipe shed with 5" D.P. RU /RD 18.00 108.00 Run hydraulic loop to top drive and N /U. R/U mud lines and Drilling 0.00 stand pipe manfold. Run power to pipe shed. Install door on Service /Repair Rig 0.00 - face of vee door. Hang cement hose. Function test top drive. Surveys 0.00 18:00 _ Complete wiring derrick and rig floor cameras. Rig up mud Tripping 0.00 lines in pits. Secure hydraulic hoses and top drive service Change BHA 0.00 Ioop.Clean and organize floor & pump room, finish burm. Casing Crew 0.00 0:00 6.00 _ Accept rig from moving/ MOB to operating @ 00:00 Cementing Crew 0.00 0:00 6:00 6.00 Nipple up diverter. change out ODS tugger line. Installing Logging 0.00 knife valve. NU /ND Test _ 6.00 6.00 DST /Core 0.00 Well Control 0.00 WOC 0.00 _ _ Safety Meetings 0.00 _ Drilling Cement 0.00 Circ /Other 0.00 24.00 SEE REMARKS & COMMENTS BELOW . TOTAL 24.00 114.00 BOTTOM HOLE ASSEMBLY QTY 1 ITEM 1 CONN DOWN I CONN UP I VENDOR 1 O.D. 1 I.D. 1 GAUGE NECK 1 LENGTH TOTAL LENGTH 0.00 0.00 0.00 #REF! #REF! #REF! #REFI #REF! #REF! #REF! #REF! BHA TOTAL LENGTH 0.00 REMARKS & COMMENTS DIESEL No accidents or spills. Diesel on Location day before 15,481 Diesel Used Last 24 1,272 Diesel Received 0 Jim Regg AOGCC waved witness for Diverter function test 16:30hrs 11 -23 -11 TOTAL DIESEL 14,209 PERSONNEL ON LOCATION COMPANY NOTE COUNT HOURS TOTAL COMPANY NOTE COUNT HOURS TOTAL Nabors Rig Crew 24 12.5 300 Cingsa Rick/ Bill 1 1 1 PRA DSM 2 12 24 0 PRA Safety 1 1 1 0 Aimm Vac 0 0 0 0 MI Swaco Dewatering 2 12 24 0 0 TOTAL COUNT 30 TOTAL MAN HOURS 350 FROM TO LENGTH JOINT DESCRIPTION G/L 95' 95' Welded 20" 133# X -56 Welded Conductor Pipe C! GSA - DAILY DRILLING REPORT Date: 11/26/2011 Well Name Storage 1 BHA #: I i DSM Days: John Nicholson Current Depth: 115' Location: Kenai, AK Tar 9060 Cell Phone: (907) 299 - 4306 Depth: Ftg /24hrs. 0 Field /Pool: Cannery Loop / Sterling C Contractor: Nabors Alaska -Rig 105 E DSM Mike Grubb Days Since 0 Present P/U 5" Drill pipe Rig Phone: (907) 398 -3156 Cell Phone: (509) 431 -7988 Spud Operation: DRILLING DATA BIT # SIZE MFG TYPE SER # JETS IN OUT FEET BIT GRADE TOTAL HOURS FT /HR 1 16" HCC #DIV /0! CASING SIZE 1 WEIGHT 1 GRADE ( THREAD 1 DEPTH 1 CEMENT COMPANY DATE - Conductor. _ 20" 133# X -56 _ Welded 95' N/A July - Surface: - Intermediate - Liner - Tubing - PUMP #1 (PUMP #2 (MUD PROPERTIES: (MUD ADDITIVES: 1 Daily (Cumulative PUMP MANF Gardner Denve PUMP MANF Gardner Denver WEIGHT GEL (50 Ib bag) I 0 PUMP TYPE PZ - PUMP TYPE PZ - FUNNEL VIS S. ASH (50 lb bag) 0 LINER SIZE 6 LINER SIZE 6 R600 /R300 KLA -GUARD MI 0 STOKE LNGTH 9 STOKE LNGTH 9 R200 /R100 LOTORQ /776 0 SPM - SPM - R6 /R3 ASPHASOL SUPREME 0 GPS - GPS - PV CONQOR 404 0 GPM - GPM - YP POTASSIUM CHLORIDE 0 PSI - PSI - GELS FLOWZAN 0 BTMS UP MIN - BTMS UP MIN - API FLUID LOSS PAC III 0 TOT CIR MIN - TOT CIR MIN - CAKE APH /HT CF -DESCO II 0 AVDP: AVDP: SOLIDS MYACIDE GA25 0 AVDC: AVDC: OIUWATER GEL -X 0 AVDC: AVDC: SAND CITRIC ACID / SAFE GARB 0 DRILL STRING & HYDRAULICS PH RESINEX 0 STRING WT. - WOB - Pf /Mf CAUSTIC SODA 0 PICK UP - RPM - CHLORIDES SODIUM BICARBONATE/mrtabisulf 0 SLACK OFF - TFA - CA BARITE / NUT PLUG / G SEAL 0 MAX PULL - HSP - VOL. PIT - (BBL) LIQUIDS 0 ECD - PRESS DROP - HOLE - (BBL) SOLIDS (BBLS hauled by AIMM) 0 DCOD - JET VEL - API SCREEN Daily Mud Cum. 0 - ACTIVITY SUMMARY TIME SUMMARY Start J Finish 1 Hours j escri•tion Detail Dail Cumulative 6:00 Continue N/U of Diverter syste r Install koomey lines and RU /RD 8.00 116.00 16" diverter line. Install riser to drip pan. Begin filling pits Drillin• 0.00 and complete testing at flow lines. Transfer spud mud from Service /Re•air Ri• 4.00 4.00 14:00 8.00 storage tanks to pits.'Set cement unit and silos rig up same 0.00 14:00 Trouble shoot repair top drive. Replace hydraulic pump • • • 10.50 10.50 gear box .Water mixed with gear oil.Change oil after Chan•e BHA al 0.00 18:00 4.00 warming oil. Casio. Crew 0.00 18:00 _ _ Function test Diverter system, test gas alarms, pvt and flow Cementin• Crew 0.00 19:30 1.50 show, Koomy preforrnance test ,all passed. Lo• •in• 0.00 19:30 P/U and drift (2.867) 5" drill pipe and stand back in derrick NU /ND Test 1.50 7.50 0:00 _ 4.50 24 stands DST /Core 0.00 0:00 P/U and drift (2.867) 5" drill pipe and stand back in derrick Well Control 0.00 6:00 6.00 69 stands total WOC 0.00 Safety Meetings 0.00 Drillin• Cement 0.00 Circ /Other 0.00 24.00 SEE REMARKS & COMMENTS BELOW TOTAL 24.00 138.00 BOTTOM HOLE ASSEMBLY QTY ITEM CONN DOWN CONN UP VENDOR O.D. I.D. GAUGE NECK LENGTH TOTAL LENGTH 0.00 0.00 0.00 0.00 #REF! #REF! #REF! II #REF! #REF! #REF! #REF! BHA TOTAL LENGTH 0.00 REMARKS & COMMENTS DIESEL No accidents or spills. Diesel on Location da before 14,209 Diesel Used Last 24 1,659 Diesel Received 0 Jim Regg AOGCC waved witness for Diverter function test 16:30 hrs 11- 23- 11(tested 11- 25 -11) TOTAL DIESEL 12,550 PERSONNEL ON LOCATION COMPANY NOTE COUNT I HOURS TOTAL COMPANY NOTE COUNT HOURS TOTAL Nabors Rig Crew 24 12.5 300 Cin•sa Rick/ Bill 1 1 1 PRA _ DSM 2 12 24 Mi Mud en•ineer 1 12 12 PRA Safety 1 _ 1 1 SLB R/U cement unit 4 6 24 Aimm Vac 2 7 14 Peak Crane 6 12 MI Swaco Dewaterina_ 2 12 24 Baker mwd 12 12 Cam Rig R/U unit _ 1 _ 8 8 0 - TOTAL COUNT TOTAL MAN HOURS FROM TO LENGTH JOINT DESCRIPTION G/L 95' 95' Welded 20" 133# X -56 Welded Conductor Pipe CINGSA - DAILY DRILLING REPORT D. Storage 1 BHA #: 1 DSM Days: John Nicholson Current Depth: 1295' Location: Kenai, AK Tar 9060 Cell Phone: (907) 299 - 4306 De.th: t Cannery Loop / Sterling C Rig Nabors Alaska - Rig 105 E DSM Mike Grubb Contractor: Ni. hts: Days Since Present Drill 16" surface hole section @ 1295' Rig Phone: (907) 398 -3156 Cell Phone: (509) 431 -7988 DRILLING DATA BIT # 1 6E MFG 6" HCC SER # 5198929 . 115 IN OUT �� BIT- TOTAL • . , , 1 16" CASING SIZE WEIGHT GRADE THREAD DEPTH CEMENT COMPANY DATE - , Conductor: 20" 133# X-56 VVelded 95' N/A MEUMMIIIII Intermediate Liner MillIl Tubing Mill PUMP #1 PUMP #2 MUD PROPERTIES: MUD ADDITIVES: Daily Cumulative PUMP MANF Gardner Denver PUMP MANF Gardner Denver WEIGHT 8.9 GEL (50 lb bag) 166 166 PUMP TYPE PZ - PUMP TYPE PZ - FUNNEL VIS 58 S. ASH (50 Ib bag) 0 LINER SIZE 6 LINER SIZE 6 R600 /R300 37/26 KLA -GUARD 0 STOKE LNGTH 9 STOKE LNGTH 9 R200 /R100 21/16 LOTORQ /776 0 SPM 95 SPM 95 R6 /R3 6/4 ASPHASOL SUPREME 0 GPS 3.18 GPS 3.18 PV 11 CONQOR 404 0 GPM 602 GPM 602 YP 15 POTASSIUM CHLORIDE 0 PSI 1300 PSI 1300 GELS 7/11/13 FLOWZAN 0 BTMS UP MIN 11 BTMS UP MIN 11 API FLUID LOSS 12.2 PAC 0 TOT CIR MIN 49 TOT CIR MIN 49 CAKE APH /HT 2/ CF -DESCO II 0 AVDP: 205.00 AVDP: 205.00 SOLIDS 4 MYACIDE GA25 0 AVDC: 57.0( AVDC: 57.06 OIL/WATER /96 GEL -X 0 AVDC: AVDC: - SAND 0.3 CITRIC ACID / SAFE GARB 0 DRILL STRING & HYDRAULICS PH 9.0 RESINEX 0 STRING WT. - WOB 10 Pf /Mf 1.2 CAUSTIC SODA 0 PICK UP - RPM 60 CHLORIDES 900 SODIUM BICARBONATE /mrtabisulf 0 SLACK OFF - TFA 0.942 CA 80 BARITE / NUT PLUG / G SEAL 0 MAX PULL - HSP 191/21 VOL. PIT - (BBL) 612 LIQUIDS 0 ECD 8.96 PRESS DROP 2 HOLE - (BBL) 180 SOLIDS (BBLS hauled by AIMM) 184 184 DCOD 7.5 JET VEL 50/0.3 API SCREEN 4 - 135's Daily Mud Cum. 350 350 ACTIVITY SUMMARY TIME SUMMARY Start Descri•tion Detail Dail Cumulative 6:00 7:00 1.00 Continue to P/U 5" drill pipe total of 77 stands 231jts 7161' RU /RD 116.00 7:00 t 2.50 P/U 5" HWDP and 6 1/4 jars stand back same Drilling 13.00 13.00 9:30 Pressure test top drive kelly hose and stadpipe manfold Service /Re•air Rio 4.00 11:00 1.50 Blow down mud lines Surve s 0.00 t t 0.50 Calibrate blocks and Can rig system _ Trio in. 8.50 19.00 t 0.50 PJSM and crew change out for P/U BHA Chan•e BHA 0.00 12:00 t 1.00 Set mouse hole P/U 3X monels and stand back. Casing Crew 0.00 13:00 t 2.50 P/U M/U BHA #1 Motor,BIT, mwd , pony collar.& Stab Cementing Crew 0.00 t t 2.00 Saud well Drill 16" hole F/ 115' - 346'. POH for Monels. Logging 0.00 t 18:00 0.50 Pull up work on shaker screen NU /ND Test 18:00 19:00 1.00 TOH P/U monels and jars RIH Spud well 19:00hrs 11- 26 -11 DST /Core 0.00 19:00 Drill 16" surface hole F/ 346' -788' up 64k, Dn 64k, Rt 64k Well Control 0.00 tit 5.00 450 gpm - 850psi , 60rpm , ART -3.9 ,AST -.3 WOC 0.00 0:00 Drill 16" surface hole F/ 788' - 1295' up 72k, Dn 72k, Rt 72k Safety Meetings 0.00 6:00 6.00 600 gpm -1300 psi , 70rpm , ART - 2.0 hrs ,AST- 1.3 hrs Drillin• Cement 0.00 Circ /Other 2.50 2.50 24.00 SEE REMARKS & COMMENTS BELOW TOTAL 24.00 162.00 BOTTOM HOLE ASSEMBLY QTY 1 ITEM 1 CONN DOWN r CONN UP 1 VENDOR 1 O.D. 1 I.D. 1 GAUGE 1 NECK LENGTH [TOTAL LENGTH 1 Motor- Sterable 1.3deg 6 5 /8reg 6 5/8 H -90 Bhil 8 15.88 1.80 28.59 28.59 1 NM Pony Collar 6 5/8 H -90 6 5/8 H -90 BHI 8 1/16 2 13/16 1.78 9.57 38.16 1 NM Stab 6 5/8 H -90 6 5/8 H -90 BHI 8 1/8 2 13/16 15 7/8 2.25 4.82 42.98 1 MWD /Gamma 6 5/8 H -90 6 5/8 H -90 BHI 8 2 13/16 33.32 76.30 1 CSNMDP _ 6 5/8 H -90 6 5/8 H -90 BHI 6 3/4 2 7/8 7 1/4 3.00 29.97 106.27 1 CSNMDP 6 5/8 H -90 6 5/8 H -90 BHI 2 7/8 7 1/2 3.22 29.24 135.51 1 CSNMDP 6 5/8 H -90 6 5/8 H -90 BHI 2 7/8 7 3/4 1.86 29.59 165.10 1 X -Over 6 5/8 H -90 4 1/2 if BHI 3 1/2 1.58 166.68 4 5" HWDP 4 1/2 if 4 1/2 if NAD 5 3 6 1/2 119.25 285.93 1 Jars 4 1/2 if 4 1/2 if WFD 2.1/4 6 1/2 1.69 32.07 _ 318.00 19 5" HWDP 4 1/2 if NAD © 3 6 1/2 566.58 884.58 - 884.58 884.58 Ell 16" BIT see above 1.30 885.88 885.88 885.88 BHA TOTAL LENGTH 885.88 REMARKS & COMMENTS DIESEL No accidents or spills. Diesel on Location day before 12,550 Diesel Used Last 24 1,588 Check flow ever stand Diesel Received 1,482 TOTAL DIESEL 12,444 PERSONNEL ON LOCATION COMPANY NOTE COUNT HOURS TOTAL COMPANY NOTE I COUNT HOURS TOTAL Nabors Rig Crew 24 12.5 300 Cingsa Rick/ Bit 1 1 1 PRA DSM 2 12 24 Mi Mud engineer 2 12 24 PRA Safety 1 1 1 SLB Deliver Cmt 2 3 6 Aimm Vac 3 12 36 BHI DD Drillers 2 12 24 MI Swaco Dewatering 2 12 24 Baker mwd 2 12 24 Cam Rig Mud loggers 2 24 48 Aimm roust 2 12 24 - TOTAL COUNT 45 TOTAL MAN HOURS 536 _ CINGSA - DAILY DRILLING REPORT Date: 11/28/2011 Well Name l J Storage 1 BHA #: 1 DSM Days: John Nicholson Current Depth: 2967' Location: Kenai, AK Tar 9060' Cell Phone: (907) 299 - 4306 _ Depth: Ftg /24hrs. 1787' Field /Pool: Cannery Loop / Sterling C Rig Nabors Alaska - Rig 105 E DSM Mike Grubb Contractor: Nights: Days Since 2 Present trip in wiper trip Rig Phone: (907) 398 - 3156 Cell Phone: (509) 431 - 7988 Spud Operation: DRILLING DATA BIT # SIZE MFG TYPE SER # JETS IN OUT FEET BIT GRADE TOTAL HOURS FT /HR 1 16" HCC VM -1 5198929 3- 181 -16 115 #DIV /0! CASING 1 SIZE WEIGHT GRADE J THREAD DEPTH 1 CEMENT COMPANY 1 DATE - Conductor: 20" 133# X -56 Welded 95' N/A July - Surface: Intermediate - Liner - Tubing - PUMP #1 "PUMP #2 MUD PROPERTIES: LMUD ADDITIVES: Daily Cumulative PUMP MANF Gardner Denver±uMP MANF Gardner Denver WEIGHT j 9.3 GEL (50 lb bag) 254 I 420 PUMP TYPE PZ - PUMP TYPE PZ - FUNNEL VIS 50 S. ASH (50 lb bag) 0 LINER SIZE 6 LINER SIZE 6 R600 /R300 43/30 KLA -GUARD 0 STOKE LNGTH _ 9 STOKE LNGTH 9 R200 /R100 25/18 LOTORQ /776 0 SPM 100 SPM 100 R6 /R3 9/7 ASPHASOLSUPREME 0 GPS 3.18 GPS 3.18 PV 13 CONQOR 404 0 GPM 625 GPM 625 YP 17 POTASSIUM CHLORIDE 0 PSI 1850 PSI 1850 GELS 10/16/17 FLOWZAN 9 9 BTMS UP MIN 48 BTMS UP MIN 48 API FLUID LOSS 11.2 PAC 10 10 TOT CIR MIN 78 TOT CIR MIN 78 CAKE APH /HT 2/ CF -DESCO II 0 AVDP: 2 3 AVDP: 218.00 SOLIDS 6 MYACIDE GA25 0 AVDC: 61.20 AVDC: 61.20 OIL /WATER /94 GEL -X _ 0 AVDC: f VDC SAND CITRIC ACID / SAFE GARB 0 DRILL STRING & HYDRAULICS 1 PH 9.0 RESINEX 0 STRING WT. 88 WOB Pf /Mf .10/.35 CAUSTIC SODA 3 3 PICK UP 102 RPM 100 CHLORIDES 900 SODIUM BICARBONATE /mrtabisulf 0 SLACK OFF 86 TFA 0.942 CA 80 BARITE / NUT PLUG / G SEAL 110 110 MAX PULL 105 HSP 397/22.8 VOL. PIT - (BBL) 419 LIQUIDS 0 ECD 8.96 PRESS DROP 2 HOLE - (BBL) 780 SOLIDS (BBLS hauled by AIMM) 619 803 DCOD F 7.5 [ET VEL 149/0.7 API SCREEN 2 -165 2 -100 Daily Mud Cum. I 1005 1355 ACTIVITY SUMMARY L TIME SUMMARY Start 1 Finish I Hours I Description Detail 1 Daily 1 Cumulative 6:00 12:00 6.00 Drill 16" surface hole F/ 1295' -1842' up 80k, Dn 80k, Rt 80k RU /RD 116.00 630 gpm -1650 psi , 75rpm , ART - 1.3 hrs ,AST- 2.1 hrs Drilling 18.00 31.00 12:00 18:00 6.00 Drill 16" surface hole F/ 1842' -2460' up 94k, Dn 84k, Rt 86k Service /Repair Rig 4.00 630 gpm -1850 psi , 75rpm , ART - 0.7 hrs ,AST- 3.9 hrs Surveys 0.00 18:00 Drill 16" surface hole F/ 2460'- 2967'. TD surface hole to fit Tripping 4.50 23.50 casing tally, up 102k, Dn 86k, Rt 88k Change BHA 0.00 0:00 6.00 630 gpm -1850 psi , 75rpm , ART - 0.9 hrs AST- 2.2 hrs Casing Crew 0.00 0:00 1:30 1.50 Circ. and condition for wiper trip at 2967', 630gpm,100rpm Cementing Crew 0.00 1:30 Monitor wet POOH SLM (wiper trip) on elevators F/2967'- Logging 0.00 4:30 3.00 Hole slick no over pulls.No correction on SLM NU /ND Test 7.50 4:30 6:00 1.50 RIH (wiper trip) From 792' -2500' DST /Core 0.00 Well Control 0.00 W OC 0.00 Safety Meetings 0.00 Drilling Cement 0.00 Circ /Other 1.50 4.00 24.00 SEE REMARKS & COMMENTS BELOW TOTAL 24.00 186.00 BOTTOM HOLE ASSEMBLY QTY I ITEM I CONN DOWN J CONN UP I VENDOR 1 O.D. 1 I.D. 1 GAUGE I NECK LENGTH ITOTAL LENGTH - 1 Motor - Sterable 1.3deg I 6 5 /8reg 6 5/8 H -90 BHI 8 I 15.88 I 1.80 I 28.59 ` 28.59 1 NM Pony Collar 6 5/8 H -90 6 5/8 H -90 BHI 8 1/16 2 13/16 1.78 9.57 38.16 1 NM Stab 6 5/8 H -90 6 5/8 H -90 BHI 8 1/8 2 13/16 15 7/8 2.25 4.82 42.98 1 MWD /Gamma 6 5/8 H -90 6 5/8 H -90 BHI 8 2 13/16 33.32 76.30 1 CSNMDP 6 5/8 H -90 6 5/8 H -90 BHI 6 3/4 _ 2 7/8 7 1/4 3.00 29.97 106.27 1 CSNMDP 6 5/8 H -90 6 5/8 H -90 BHI 6 3/4 2 7/8 7 1/2 3.22 29.24 135.51 1 CSNMDP 6 5/8 H -90 6 5/8 H -90 BHI 6 3/4 2 7/8 7 3/4 1.86 29.59 165.10 1 X -Over 6 5/8 H -90 4 1/2 if BHI 7 3/4 3 1/2 1.58 166.68 4 5" HWDP 4 1/2 if 4 1/2 if NAD 5 3 6 1/2 119.25 285.93 1 Jars 4 1/2 if 4 1/2 if WFD _ 6 3/16 2.1/4 6 1/2 1.69 32.07 318.00 19 5" HWDP 4 1/2 if 4 1/2 if NAD 5 _ 3 6 1/2 566.58 884.58 l 884.58 884.58 1 16" BIT see above 1.30 885.88 885.88 885.88 BHA TOTAL LENGTH 885.88 REMARKS & COMMENTS DIESEL No accidents or spills. Diesel on Location day before 12,444 Check for swabbing ,initial trip light swabbing Diesel Used Last 24 2,904 Check flow every stand Diesel Received TOTAL DIESEL 9,540 PERSONNEL ON LOCATION COMPANY NOTE ( COUNT I HOURS 1 TOTAL 1 COMPANY NOTE I COUNT 1HOURS I TOTAL Nabors Rig Crew 24 12.5 300 Cingsa Conrad 1 2 2 PRA DSM 2 12 24 Mi Mud engineer 2 12 24 PRA Safety 1 1 1 SLB Deliver Cmt 2 3 6 Aimm Vac 3 10 30 BHI DD Drillers 2 12 24 MI Swaco Dewatering 2 12 24 Baker mwd 2 12 24 Cam Rig Mud loggers 2 24 48 Aimm roust 2 9 18 - TOTAL COUNT 45 TOTAL MAN HOURS 525 CINGSA - DAILY DRILLING REPORT Date: 11/30/2011 Well Name 4I, Storage 1 BHA #: 1410 DSM Days: John Nicholson Current Depth: 2967' Location: Kenai, AK Tar 9060' Cell Phone: (907) 299 - 4306 Depth: Ftg /24hrs. 0 Field/Pool: Cannery Loop / Sterling C Contr : Nabors Alaska -Rig 105 E NDSM M ike Grubb Days Since Present Cement 13 3/8 casing Rig Phone: (907) 398 -3156 Cell Phone: (509) 431 -7988 Spud Operation: DRILLING DATA BIT # SIZE MFG TYPE SER # JETS IN OUT FEET BIT GRADE TOTAL HOURS FT /IIR 1 16" HCC VM -1 5198929 3- 181 -16 115 2967 2852' 17 168.00 CASING SIZE 1 WEIGHT I GRADE I THREAD 1 DEPTH 1 CEMENT COMPANY DATE 1 - Conductor: 20" 133# X -56 Welded 95' N/A _ July - Surface: - Intermediate - Liner Tubing PUMP #1 (PUMP #2 MUD PROPERTIES: MUD ADDITIVES: 1 Daily (Cumulative PUMP MANF Gardner Denver PUMP MANF Gardner Denver WEIGHT 9.3 GEL j50 lb bag) 420 PUMP TYPE PZ - PUMP TYPE PZ - FUNNEL VIS 47 S. ASH (50 lb bag) 0 LINER SIZE 6 LINER SIZE 6 R600/R300 37/27 KLA -GUARD 0 STOKE LNGTH 9 STOKE LNGTH 9 R200/R100 21/15 LOTORQ /776 0 SPM 66 SPM 100 R6 /R3 _ 6/4 ASPHASOL SUPREME 0 GPS 3.18 GPS 3.18 PV 12 CONDOR 404 0 GPM 625 GPM 625 YP 15 POTASSIUM CHLORIDE 0 PSI 350 PSI 350 GELS 5/8/11 FLOVVZAN 3 12 BTMS UP MIN 48 BTMS UP MIN 48 API FLUID LOSS 8.6 PAC 10 TOT CIR MIN 78 TOT CIR MIN 78 CAKE APH /HT 2/ CF -DESCO 11 0 AVDP: 153.00 AVDP: SOLIDS 6 MYACIDE GA25 0 AVDC: AVDC: OIL/WATER /94 GEL -X 0 AVDC (AVDC: SAND 0.5 CITRIC ACID / SAFE CARB 0 DRILL STRING & HYDRAULICS PH 9.1 RESINEX 0 STRING WT. 88 WOB Pf /Mf .10/.30 CAUSTIC SODA 3 PICK UP 102 RPM 100 CHLORIDES 700 SODIUM BICARBONATE /mrtabisulf 0 SLACK OFF 86 TFA 0.942 CA 80 BARITE / NUT PLUG / G SEAL 70 180 MAX PULL 105 HSP 397/22.8 VOL. PIT - (BBL) 419 LIQUIDS 0 ECD 8.96 PRESS DROP 2 HOLE - (BBL) 780 SOLIDS (BBLS hauled by AIMM) 803 DCOD 7.5 JET VEL 149/0.7 API SCREEN 2 -165 2 -100 Daily Mud Cum. 73 1428 ACTIVITY SUMMARY TIME SUMMARY Start Finish Hours Descri•tion Detail Dail Cumulative 6:00 6:30 0.50 Continue RIH F/2500'-289T wash to 2967' tag bottom (no fill) RU /RD 116.00 6:30 8:00 1.50 Pump high vis sweep, circ until shakers cleaned up. Drilling 31.00 8:00 10:30 2.50 Monitor well, pump dry job Poh F/ 2967' monitor well for Service /Repair Rig 4.00 swabbing. Blow down Top Drive. Surveys 0.00 10:30 11:30 1.00 Stand back HWDP, jars and monels Tripping 5.50 29.00 11:30 13:00 1.50 Work BHA, B/O bit, Drain motor. Lay down stab, pony collar Change BHA 0.00 MWD & Motor. Clean clear floor Casing Crew 14.00 14.00 13:00 14:30 1.50 PJSM; Rig up to run 13 3 /8csg. R/U tongs hyd lines elevators Cementing Crew 0.00 spider, Fill up line and back up tongs Logging 0.00 14:30 Make up shoe track check floats ok. Run 13 3/8 68# BTC -M NU /ND Test 7.50 23:00 8.50 J -55 casing with L -80 collars from surface to 2956' DST /Core 0.00 23:00 23:30 0.50 R/D casing tools Well Control 0.00 23:30 2:00 2.50 R/U false rotary table,M /U stab in tool and centrilizer RIH WOC 0.00 2:00 2:30 0.50 R/U cement head Safety Meetings 0.00 2:30 5:00 2.50 Circ stage up to 5 bpm 350psi Circ B/U 2X clean up hole Drilling Cement 0.00 5:00 6:00 1.00 PJSM Prime up Cementers Pump 5BBL test lines to 3000psi Circ /Other 4.50 8.50 24.00 SEE REMARKS & COMMENTS BELOW TOTAL 24.00 210.00 BOTTOM HOLE ASSEMBLY QTY I ITEM 1 CONN DOWN ( CONN UP ( VENDOR ( O.D. ( I.D. 1 GAUGE I NECK I LENGTH (TOTAL LENGTH BHA TOTAL LENGTH o.00 REMARKS & COMMENTS DIESEL No accidents or spills. Diesel on Location day before 9,540 _ Diesel Used Last 24 4,151 Work casing through tight hole 235', 2535' Test lines 3000psi Pump mud push W/ rig pumps @ 0600hrs Diesel Received Jim Regg from AOGCC called @17:30 11 -28 -11 _ TOTAL DIESEL 5,389 PERSONNEL ON LOCATION COMPANY NOTE _ COUNT HOURS TOTAL COMPANY _ NOTE COUNT HOURS TOTAL Nabors Rig Crew 24 12.5 300 Cingsa Conrad _ 1 6 6 PRA DSM 2 12 24 Mi Mud engineer 2 12 24 PRA Safety 1 1 _ 1 SLB Deliver Cmt _ 2 3 6 Aimm Vac 3 10 30 BHI DD Drillers 2 12 24 MI Swaco Dewatering 2 - 12 24 Baker mwd 2 12 24 Cam Rig Mud loggers 2 24 48 Aimm 0 TOTAL COUNT 43 TOTAL MAN HOURS 511 FROM TO LENGTH JOINT DESCRIPTION G/L 95' 95' Welded 20" 133# X -56 Welded Conductor Pipe RT 115' 2956' BTCM 13 3/8" 68# J -55 (shoe @2956' , Float collar @2912') SA DAILY DRILLING REPORT Date: 11/30/2011 Well Name t U Storage 1 BHA #: 1 DSM Days: John Nicholson Target Current Depth: 2967' Location: Kenai, AK 9060' Cell Phone: (907) 299 - 4306 Depth: Ftg /24hrs. 0 Field /Pool: Cannery Loop / Sterling C Nabors Alaska - Rig 105 E DSM Mike Grubb Contra ctor: Nights: Days Since 4 Present N/U BOP Rig Phone: (907) 398 - 3156 Cell Phone: (509) 431 - 7988 Spud Operation DRILLING DATA BIT # SIZE MFG TYPE SER # JETS IN OUT FEET BIT GRADE TOTAL HOURS FT/HR 17 168.00 CASING 1 SIZE 1 WEIGHT 1 GRADE ( THREAD ! DEPTH CEMENT COMPANY 1 DATE 1 - Conductor: 20" 133# X -56 Welded 95' _I N/A July - Surface: 13 3/8 68 J -55 BTC -M 2957 SLB 29 -Nov Intermediate - Liner - Tubing - PUMP #1 PUMP #2 MUD PROPERTIES: MUD ADDITIVES: 1 Daily Cumulative PUMP MANF_J Gardner Denver PUMP MANF Gardner Denver WEIGHT 9.3 GEL (50 lb bag) 420 PUMP TYPE PZ - PUMP TYPE PZ - FUNNEL VIS 47 S. ASH (50 Ib bag) 0 LINER SIZE 6 LINER SIZE 6 R600 /R300 37/27 KLA -GUARD 0 STOKE LNGTH 9 STOKE LNGTH 9 R200 /R100 20/14 LOTORQ /776 0 SPM 66 SPM 100 R6 /R3 6/4 ASPHASOL SUPREME 0 GPS 3.18 GPS 3.18 PV 12 CONQOR 404 0 GPM 625 GPM 625 YP 13 POTASSIUM CHLORIDE 0 PSI 350 PSI 350 GELS 5/8/11 FLOWZAN 12 BTMS UP MIN BTMS UP MIN 0 API FLUID LOSS 8.6 PAC 10 TOT CIR MIN TOT CIR MIN 0 CAKE APH /HT / CF -DESCO II 23 23 AVDP: AVDP: SOLIDS 6 MYAOIDE GA25 0 AVDC: AVDC: OIL /WATER /94 GEL -X 0 AVDC: AVDC: - SAND 0.5 CITRIC ACID / SAFE CARB 0 DRILL STRING & HYDRAULICS PH 9.2 RESINEX 0 STRING WT. WOB Pf /Mf .3/.8 CAUSTIC SODA 3 PICK UP RPM CHLORIDES 700 SODIUM BICARBONATE /mrtabisulf 15 15 SLACK OFF TFA CA 160 BARITE / NUT PLUG / G SEAL 1 181 MAX PULL _ HSP VOL. PIT - (BBL) 120 LIQUIDS 1101 1101 ECD PRESS DROP HOLE - (BBL) 444 SOLIDS (BBLS hauled by AIMM) 803 DCOD JET VEL API SCREEN 2 -165 2 -100 Daily Mud Cum. 1140 2568 ACTIVITY SUMMARY I TIME SUMMARY Start Finish r Ho Description f Detail 1 Daily 1 Cumulative 6:00 9:00 3.00 Continue cementing 13 3/8 casing. Pump 266bb1s of 12.0 RU /RD 11.00 127.00 ppg Class A lead cement with a yield of 2.45 ft/sx followed Drilling 31.00 by 65bbls Class A cement W/ a yiled of 1.44 Ft/sx Pump Service /Repair Rig 4.00 ? 5 bbl H2o turn over to rig for displacement. Displace DP Surveys 0.00 yy/� W/ 43 bbls 9.3 mud leaving 3bbls Cmt. in DP to spot on Tripping 5.00 34.00 4V top of float collar. CIP @ 8:54am 100% returns with 132bb1 Change BHA 0.00 at surface.Check floats ,floats held Casing Crew 14.00 9:00 12:00 3.00 Un sting from float collar 30' Circ. Casing volume.saw cmt. Cementing Crew 3.00 3.00 at B /U. drop wiper dart Circ 1.5 drilipipe volume. R/D flow Logging 0.00 nipple, R/U false rotary. POH F/ 2850' NU /ND Test 7.50 12:00 13:30 1.50 Shut down operations for drug alcohol & firearm search DST /Core 0.00 13:30 15:30 2.00 Resume operations, POH with inner string Clean pits Well Control 0.00 15:30 Continue pit cleaning, N/D diverter , WOC ,CIO saver sub WOC 0.00 0:00 8.50 P/U stack, rough cut ,move out 20 ": annular and 16" spool Safety Meetings 0.00 0:00 Cut conductor 37" BGL,13 3/8 20" BGL & dress.lnstall FMC Drilling Cement 0.00 3:30 3.50 13 3/8 x 5k c -22 SL,test t/1560psi for 15 min, tq slips U 250 Circ /Other 5.00 13.50 03:30 06:00 2.50 N/U BOP'S and related components TOTAL 24.00 234.00 BOTTOM HOLE ASSEMBLY QTY 1 ITEM I CONN DOWN 1 CONN UP I VENDOR I O.D. 1 I.D. 1 GAUGE ! NECK I LENGTH (TOTAL LENGTH - _ BHA TOTAL LENGTH o.00 REMARKS & COMMENTS DIESEL No accidents or spills. Diesel on Location day before 5,389 Verify hard cement 4' BGL Diesel Used Last 24 772 13 3/8" casing cut 24.55' Diesel Received 4,000 TOTAL DIESEL 8,617 PERSONNEL ON LOCATION COMPANY NOTE COUNT HOURS TOTAL COMPANY NOTE COUNT HOURS TOTAL Nabors Rig Crew 24 _ 12.5 300 Cingsa Conrad 1 6 6 PRA DSM 2 12 24 Mi Mud engineer 2 12 24 PRA Safety 1 1 - 1 SLB Deliver Cmt 2 3 6 Aimm Vac 3 20 60 BHI DD Drillers _ 2 12 24 _ MI Swaco Dewatering_ 2 12 24 _ Baker mwd - 2 12 24 _ Cam Rig Mud loggers 2 24 48 Aimm rst 2 12 24 TOTAL COUNT 45 TOTAL MAN HOURS 565 FROM TO LENGTH JOINT DESCRIPTION G/L 95' 95' Welded 20" 133# X -56 Welded Conductor Pipe RT 115' 2956' BTCM 13 3/8" 68# J -55 (shoe 42956' , Float collar (c1�,2912' CINGSA - DAILY DRILLING REPORT Date: 12/1/2011 Well Name 1 Storage 1 BHA #: 20 DSM Days: Steve Ratcliff Current Depth: 2987 Location: Kenai, AK Tar 9060' Cell Phone: (907) 299 - 4306 Depth: ig Ftg /24hrs. 20 Field/Pool: Cannery Loop / Sterling C Contractor: Nabors Alaska -Rig 105 E N gh Mike Grubb Days Since 5 Present displace with flo pro mud Rig Phone: (907) 398 -3156 Cell Phone: (509) 431 -7988 Spud Operation: DRILLING DATA BIT # SIZE MFG TYPE SER # JETS IN OUT FEET BIT GRADE TOTAL HOURS FT /HR 2 121/4 HCC QD505XX 702287 8X12 2967' 0 CASING I SIZE 1 WEIGHT 1 GRADE 1 THREAD 1 DEPTH 1 CEMENT COMPANY 1 DATE 1 - Conductor: 20" 133# X -56 Welded _ 95' N/A July - Surface: 13 3/8 68 J -55 BTC -M 2956' SLB 29 -Nov - Intermediate Liner Tubing - PUMP #1 IPUMP #2 IMUD PROPERTIES: IMUD ADDITIVES: 1 Daily Cumulative PUMP MANF Gardner Denver PUMP MANF Gardner Denver WEIGHT 9.3 GEL (50 Ib bag) 420 PUMP TYPE PZ - PUMP TYPE PZ - FUNNEL VIS 47 S. ASH (50 Ib bag) 0 LINER SIZE 6 LINER SIZE 6 R600 /R300 37/25 KLA - GUARD 0 STOKE LNGTH 9 STOKE LNGTH 9 R200/R100 20/14 LOTORQ /776 0 SPM 55 SPM 55 R6 /R3 6/4 ASPHASOL SUPREME 0 GPS 0.08 GPS 0.0755 PV 12 CONQOR 404 0 GPM 350 GPM 350 YP 13 POTASSIUM CHLORIDE 0 PSI 640 PSI 640 GELS 5/8/11 FLOWZAN 12 BTMS UP MIN BTMS UP MIN 0 API FLUID LOSS 8.6 PAC 10 TOT CIR MIN TOT CIR MIN 0 CAKE APH /HT 2 CF -DESCO 11 23 46 AVDP: AVDP: 0 10 SOLIDS 6 MYACIDE GA25 0 AVDC: AVDC: -. (''I' OIUWATER /94 GEL -X 0 AVDC: AVDC: - SAND 0.5 CITRIC ACID / SAFE CARB 0 DRILL STRING & HYDRAULICS PH 9.2 RESINEX 0 STRING WT. WOB Pf /Mf .30/.80 CAUSTIC SODA 3 PICK UP RPM CHLORIDES 700 SODIUM BICARBONATE /mrtabisulf 15 30 SLACK OFF TFA CA 160 BARITE / NUT PLUG / G SEAL 1 182 MAX PULL HSP VOL. PIT - (BBL) 100 LIQUIDS 870 1971 ECD PRESS DROP HOLE - (BBL) 444 SOLIDS (BBLS hauled by AIMM) 803 DCOD JET VEL API SCREEN 4x200 Daily Mud Cum. 909 3477 ACTIVITY SUMMARY J TIME SUMMARY Start 1 Finish 1 Hours J Description IDetail I Daily 1 Cumulative 6:00 11:00 5.00 Continue to N/U BOP Torque up spool, Gates and Annular RU /RD 6.00 133.00 Install choke and kill lines. R/U flow nipple, trip tank lines & Drilling 1.50 32.50 • Koomey control lines. Service /Repair Rig 0.50 4.50 11:00 12:00 1.00 Fill hole, stage test joint and test tools. Surveys 0.00 12:00 18:00 6.00 M/U test joint set test plug R/U test pump and lines. Test Tripping 5.00 39.00 BOP and all related components 250/2500 5min. Test gas Change BHA 0.00 Vi � alarms LEL and H2s. Test flow and PVT system. Preform Casing Crew 14.00 4 e ,5 accumulator drawdown test. Rig down test joint, Cementing Crew 3.00 18:00 19:00 1.00 R/D test equip. , Install long wear bushing. Logging 0.00 19:00 20:00 1.00 Test 13 3/8 casing to 2000 psi F/ 30 min NU /ND Test 7.00 14.50 20:00 20:30 0.50 Blow down surface equipment DST /Core 0.00 20:30 21:30 1.00 Stage BHA on rig floor Well Control 0.00 21:30 22:00 0.50 Change out hydraulic hose on top drive WOC 0.00 22:00 0:00 2.00 P/U steering head and ontrak , plug into and verify, M/U bit Safety Meetings 0.00 0:00 4:00 4.00 RIH T/2794' wash T/2896' Tag firm cement Drilling Cement 0.00 4:00 5:30 1.50 Drill out cement , shoe track and 20' new hole to 2986" Circ /Other 4.00 17.50 05:30 06:00 0.50 Test lines ,prep to displace to flow pro mud ,pump out pit #6 TOTAL 24.00 258.00 BOTTOM HOLE ASSEMBLY QTY I ITEM I CONN DOWN 1 CONN UP I VENDOR 0.D. I I.D. I GAUGE I NECK I LENGTH ITOTAL LENGTH 1 Steering Head, FIex,NM,X0 6 5 /8reg T -2 BHI 9 1/2 12.25 8.67 23.67 1 Ontrac, Stab, BCPM, Stop T -2 6 5 /8reg BHI 8 1/4 12 1/8 1.70 37.73 1 NM Filter Sub 6 5 /8reg _ 6 5 /8reg BHI 8 1/8 2 7/8 5.44 1 NMX -over Float Sub 6 5 /8reg 6 5/8 H -90 BHI 7 13/16 2 7/8 2.76 1 CSNNDP 6 5/8 H -90 6 5/8 H -90 BHI 6 3/4 2 7/8 7 3/4 1.86 29.97 1 CSNNDP 6 5/8 H -90 6 5/8 H -90 BHI 6 3/4 2 7/8 7 1/4 3.00 29.24 1 CSNNDP 6 5/8 H -90 6 5/8 H -90 BHI 6 3/4 2 7/8 7 1/2 3.22 29.59 1 Steel X -over 6 5/8 H -90 4 1/2 IF BHI 7 3/4 3 1/2 1.58 4 HWDP 41/2 IF 4 1/2 IF NAD 5 3 6 1/2 119.25 1 Jars 41/2 IF 41/21F WFD 6 3/16 2 1/4 1.70 32.07 19 HWDP 41/2 IF 41/2 IF NAD 5 3 6 1/2 566.58 12.250 BIT I 1.34 .- BHA TOTAL LENGTH 879.22 REMARKS & COMMENTS DIESEL No accidents or spills. Diesel on Location day before _ 8,617 Witness waved by Jeff Jones AOGCC @ 10:19hrs 11 -30 -11 Diesel Used Last 24 851 Diesel Received TOTAL DIESEL 7,766 PERSONNEL ON LOCATION COMPANY NOTE COUNT HOURS TOTAL COMPANY NOTE COUNT HOURS TOTAL Nabors Rig Crew 24 12.5 300 0 0 PRA DSM 2 12 24 Mi Mud engineer 2 12 24 PRA Safety 1 1 1 0 Aimm Vac 3 20 60 BHI DD Drillers 2 12 24 MI Swaco Dewatering 2 12 24 Baker mwd 2 12 24 Cam Rig Mud loggers 4 24 96 0 AK Heater Boiler 2 12 24 - TOTAL COUNT 42 TOTAL MAN HOURS 601 FROM TO LENGTH JOINT DESCRIPTION G/L 95° 95' Welded 20" 133# X -56 Welded Conductor Pipe RT 115' 2956' BTCM 13 3/8" 68# J -55 (shoe A2956' , Float collar P2912') CINGSA - DAILY DRILLING REPORT Date: 12/2/2011 Well Name 41111.1.1 Storage 1 BHA #: DSM Days: Steve Ratcliff Current Depth: 5185' Location: Kenai, AK Tar 9060' Cell Phone: (907) 299 - 4306 Depth: ig DSM Ftg /24hrs. 2198' Field/Pool: Cannery Loop / Sterling C convector: Nabors Alaska -Rig 105 E Nights: Mike Grubb Days Since 6 Present Drill ahead @ 5185' Rig Phone: (907) 398 -3156 Cell Phone: (509) 431 -7988 Spud Operation: DRILLING DATA BIT # SIZE MFG TYPE SER # JETS IN OUT FEET BIT GRADE TOTAL HOURS FT /HR 2 121/4 HCC QD505XX 702287 8X12 2967' 2198' 14 157.00 CASING 1 SIZE 1 WEIGHT 1 GRADE 1 THREAD 1 DEPTH I CEMENT COMPANY 1 DATE 1 - Conductor. 20" 133# X -56 Welded 95' N/A July - Surface: 13 3/8 68 J -55 BTC -M 2956' SLB 29 -Nov - Intermediate - Liner - Tubing PUMP #1 PUMP #2 IMUD PROPERTIES: MUD ADDITIVES: 1 Daily Cumulative PUMP MANF Gardner DenVe1 PUMP MANF Gardner Denver WEIGHT 9.2 GEL (50 Ib bag) 420 PUMP TYPE PZ - PUMP TYPE PZ - FUNNEL VIS 47 S. ASH (50 lb bag) 0 LINER SIZE 6 LINER SIZE 6 R600 /R300 40/30 KLA -GUARD 0 STOKE LNGTH 9 STOKE LNGTH 9 R200 /R100 26/22 LOTORQ /776 1 1 SPM 55 SPM 55 R6 /R3 12/10 ASPHASOLSUPREME 117 117 GPS 0.08 GPS 0.0755 PV 10 CONQOR 404 2 2 GPM 350 GPM 350 YP 20 POTASSIUM CHLORIDE 90 90 PSI 1600 PSI 1600 GELS 11/12/17 FLOWZAN 15 27 BTMS UP MIN 41 BTMS UP MIN 41 API FLUID LOSS 8.4 PAC 10 TOT CIR MIN 87 TOT CIR MIN 87 CAKE APH /HT 2/ CF -DESCO II 35 81 _ AVDP: 218.00 AVDP: 218.00 SOLIDS 6 MYACIDE GA25 0 AVDC: 127.90 AVDC: 1 -' 20 OIIJWATER 2/92 GEL -X 0 • AVDC: AVDC: SAND 0.1 CITRIC ACID / SAFE CARB 22 22 DRILL STRING & HYDRAULICS PH 9.2 RESINEX 25 25 STRING WT. 107 WOB 12 Pf /Mf .20/1.10 CAUSTIC SODA 3 PICK UP 130 RPM 130 CHLORIDES 17000 SODIUM BICARBONATE /mrtabisulf 11 41 SLACK OFF 87 TFA 0.884 CA 320 BARITE / NUT PLUG / G SEAL 182 MAX PULL 135 HSP 391/25.7 VOL. PIT - (BBL) 600 LIQUIDS 375 2346 ECD 9.45 PRESS DROP 8 HOLE - (BBL) 652 SOLIDS (BBLS hauled by AIMM) 820 1623 DCOD 11 JET VEL 137/1.2 API SCREEN 4x200 Daily Mud Cum. 1513 4990 ACTIVITY SUMMARY 1 TIME SUMMARY Start I Finish 1 Hours 1 Description [Detail I Daily I Cumulative 6:00 7:30 1.50 Displace hole Pump 40 bbl hi vis spacer sweep followed RU /RD 133.00 by 420bbIs 9.0 flow pro mud. Drilling 22.00 54.50 7:30 8:00 0.50 y Preform FIT test W/ 9.0mw +835p na 2642tvd = 15.0 EMW Service /Repair Rig 4.50 8:00 Drill 12 1/4 hole section F/ 2986' -3369' 130 rpm, 600gpm Surveys 0.00 12:00 4.00 Up 115k, Dn 90k, Rt 90k, 1450psi , bit wt- 12,TQ- 7k,ART 2.5 Tripping 39.00 12:00 Drill 12 1/4 hole section F/3369' -3985' 130 rpm, 600gpm Change BHA 0.00 18:00 6.00 Up 120k, Dn85k, Rt 98k, 1500psi , bit wt -12, TQ- 7k,ART 3.8 Casing Crew 14.00 18:00 Drill 12 1/4 hole section F/3985' -4583' 130 rpm, 600gpm Cementing Crew 3.00 00:00 6.00 Up 127k, Dn86k, Rt 100k,1500psi, bit wt -12, TQ- 7k,ART 3.9 Logging 0.00 0:00 Drill 12 1/4 hole section F/4583'- 5185' 130 rpm, 600gpm NU /ND Test 0.50 15.00 6:00 6.00 Up 130k, Dn87k, Rt 107k,1500psi,bit wt- 12,TQ -11 k,ART 3.8 DST /Core 0.00 Well Control 0.00 WOC 0.00 Safety Meetings 0.00 Drilling Cement 0.00 _ Circ /Other 1.50 19.00 TOTAL 24.00 282.00 BOTTOM HOLE ASSEMBLY QTY 1 ITEM 1 CONN DOWN - 1 CONN UP 1 VENDOR I O.D. I I.D. I GAUGE I NECK I LENGTH (TOTAL LENGTH 1 Steering Head, FIex,NM,XO 6 5 /8reg T -2 BHI 9 1/2 12.25 8.67 23.67 1 Ontrac, Stab, BCPM, Stop T -2 6 5 /8reg BHI 8 1/4 12 1/8 1.70 37.73 1 NM Filter Sub 6 5 /8reg 6 5 /8reg BHI 8 1/8 2 7/8 5.44 1 NMX -over Float Sub 6 5 /8reg 6 5/8 H -90 BHI 7 13/16 2 7/8 2.76 1 CSNNDP 6 5/8 H -90 6 5/8 H -90 BHI _ 6 3/4 2 7/8 7 3/4 1.86 29.97 1 CSNNDP 6 5/8 H -90 6 5/8 H -90 BHI 6 3/4 2 7/8 7 1/4 3.00 29.24 1 CSNNDP 6 5/8 H -90 6 5/8 H -90 BHI 6 3/4 2 7/8 7 1/2 3.22 29.59 1 Steel X -over 6 5/8 H -90 4 1/2 IF BHI 7 3/4 3 1/2 1.58 4 HWDP 41/2 IF 41/2 IF NAD 5 3 6 1/2 119.25 1 Jars 41 /21F 41/21F WFD 6 3/16 2 1/4 1.70 32.07 19 HWDP 41/2 IF 41/2 IF NAD 5 3 6 1/2 566.58 12.250 BIT 1.34 BHA TOTAL LENGTH 879.22 REMARKS & COMMENTS DIESEL No accidents or spills. Next BOP Test 12 -13 -11 Diesel on Location day before 7,766 Flow check every stand SPR #1 125psi @ 2bpm Diesel Used Last 24 2,516 Spill drill SPR #2 160psi @ 3bpm Diesel Received Continue to demob swaco de watering unit TOTAL DIESEL 5,250 PERSONNEL ON LOCATION COMPANY NOTE COUNT HOURS TOTAL COMPANY NOTE COUNT HOURS TOTAL Nabors Rig Crew 24 - 12.5 300 PRA Rick 1 1 1 PRA DSM 2 12 24 Mi Mud engineer 2 12 24 PRA Safety 1 1 1 PRA Geol 1 12 12 Aimm Vac 5 _ 10 50 BHI DD Drillers 2 12 24 MI Swaco Dewatering 3 12 36 Baker mwd 2 12 24 Cam Rig Mud loggers 4 24 96 Aimm roust 4 12 48 AK Heater Boiler 2 12 24 - TOTAL COUNT 51 TOTAL MAN HOURS 664 FROM TO LENGTH JOINT DESCRIPTION G/L 95' _ 95' Welded 20" 133# X -56 Welded Conductor Pipe RT 115' 2956' BTCM 13 3/8" 68# J -55 (shoe @2956' , Float collar @2912') CINGSA - DAILY DRILLING REPORT Date: 12/3/2011 Well Name 41, Storage 1 BHA #: 2• DSM Days: Steve Ratcliff Current Depth: 6387' Location: Kenai, AK Tar 9060' Cell Phone: (907) 230 - 9902 Depth: ig Ftg/24hrs. 1202 Field /Pool: Cannery Loop / Sterling C Contractor: Nabors Alaska -Rig 105 E N Mike Grubb Days Since Present DRILL AHEAD @ Rig Phone: (907) 398 -3156 Cell Phone: (509) 431 -7988 Spud Operation: DRILLING DATA BIT # SIZE MFG TYPE SER # JETS IN OUT I FEET BIT GRADE TOTAL HOURS FT/HR 2 121/4 HCC QD505XX 702287 8X12 2967' 3420' 24.3 141.00 CASING SIZE 1 WEIGHT 1 GRADE ( THREAD DEPTH CEMENT COMPANY DATE - Conductor: 20" 133# _ X -56 Welded 95' N/A July - Surface: 13 3/8 68 _ J -55 BTC-M 2956' SLB 29 -Nov - Intermediate - Liner - Tubing - PUMP #1 PUMP #2 (MUD PROPERTIES: IMUD ADDITIVES: Daily (Cumulative PUMP MANF Gardner Denver PUMP MANF Gardner Denver WEIGHT 9.2 GEL (50 lb bag) 420 PUMP TYPE PZ - PUMP TYPE PZ - FUNNEL VIS 47 S. ASH (50 Ib bag) 0 LINER SIZE 6 LINER SIZE 6 R600 /R300 40/29 KLA -GUARD 0 STOKE LNGTH 9 STOKE LNGTH 9 R200 /R100 11/8 LOTORQ /776 1 2 SPM 95 SPM 55 R6 /R3 12/10 ASPHASOLSUPREME 5 122 GPS 0.08 GPS 0.0755 PV 11 CONQOR 404 2 4 GPM 609 GPM 609 YP 18 POTASSIUM CHLORIDE 395 485 PSI 1720 PSI 1720 GELS 9/12/17 FLOWZAN 6 33 _ BTMS UP MIN 53 BTMS UP MIN _ 53 API FLUID LOSS 7.2 PAC 33 43 TOT CIR MIN 105 TOT CIR MIN 105 CAKE APH /HT 1/ CF -DESCO II 81 AVDP: 218.00 AVDP: _ 218.00 SOLIDS 6 MYACIDE GA25 0 AVDC: 127.90 AVDC: _ 127.90 OIL/WATER 3/91 GEL -X 0 AVDC: AVDC: - SAND 0.25 CITRIC ACID / SAFE CARB 22 DRILL STRING & HYDRAULICS PH 9.2 RESINEX 54 79 STRING WT. _ 119 WOB _ 15 Pf /Mf _ .20/.90 CAUSTIC SODA 10 13 PICK UP 160 RPM 100 CHLORIDES 29000 SODIUM BICARBONATE/mrtabisult 41 SLACK OFF 90 _ TFA _ 0.884 CA 280 BARITE / NUT PLUG / G SEAL 182 MAX PULL 163 HSP 391/25.7 VOL. PIT - (BBL) 644 LIQUIDS 243 2589 ECD 9.43 PRESS DROP 5 HOLE - (BBL) 858 SOLIDS (BBLS hauled by AIMM) 297 1920 DCOD 11 JET VEL 137/1.2 API SCREEN 4x200 Daily Mud Cum. 1046 6036 ACTIVITY SUMMARY TIME SUMMARY Start ( Finish ( Hours 1 Description $Detail ( Daily ( Cumulative 6:00 7:00 1.00 Drill 12 1/4 hole section F15185'- 5281' 13Orpm 600gpm RU /RD 133.00 Up140, Dn80, Rt100 ,1650psi,TQ11,rop200,ART.7hr Drilling 14.50 69.00 7:00 8:00 1.00 Circulate bottoms up Service /Repair Rig 0.50 5.00 7:00 13:30 5.50 Backream from 5281' -2956' 350gpm,100rpm,4530,4960 tite Surveys 0.00 13:30 14:00 0.50 Circulate bottoms up ,609 gpm , 1500 psi Tripping 7.50 46.50 14:00 _ 14:30 0.50 Service and lube;top drive ,crown and blocks,C /O shaker Change BHA 0.00 screens 200's,blow down top drive Casing Crew I 14.00 14:30 16:30 2.00 i RIH F12956'- 5185', wash to 5281' , no fill Cementing Crew 3.00 16:30 Drill 12 1/4 hole section F/5281' -5955' 13Orpm 600gpm Logging 0.00 0:00 7.50 Up155, Dn105, Rt110 ,1720psi,TQ10,rop120,ART5hr NU /ND Test 15.00 0:00 Drill 12 1/4 hole section F/5955'- 6387' 12Orpm 600gpm DST /Core 0.00 6:00 6.00 Up160,Dn90,Rt119,1720psi,TQ12.5 ,ART4.6 hr Well Control 0.00 WOC 0.00 _ Safety Meetings 0.00 _ Drilling Cement 0.00 f Circ /Other 1.50 20.50 24.00 TOTAL 24.00 306.00 BOTTOM HOLE ASSEMBLY QTY 1 ITEM [ CONN DOWN ( CONN UP ( VENDOR ( O.D. I I.D. GAUGE I NECK ( LENGTH (TOTAL LENGTH 1 Steering Head, FIex,NM,X0 6 5/8reg T -2 BHI 9 1/2 12.25 8.67 23.67 1 Ontrac, Stab, BCPM, Stop T -2 6 5 /8reg BHI 8 1/4 12 1/8 1.70 37.73 1 NM Filter Sub 6 5 /8reg 6 5 /8reg BHI 8 1/8 2 7/8 5.44 1 NMX -over Float Sub 6 5 /8reg 6 5/8 H -90 BHI 7 13/16 2 7/8 2.76 1 CSNNDP 6 5/8 H -90 6 5/8 H -90 BHI 6 3/4 2 7/8 7 3/4 1.86 29.97 1 CSNNDP 6 5/8 H -90 6 5/8 H -90 BHI 6 3/4 2 7/8 7 1/4 3.00 29.24 1 CSNNDP 6 5/8 H -90 6 5/8 H -90 BHI 6 3/4 2 7/8 7 1/2 3.22 29.59 1 Steel X -over 6 5/8 H -90 4 1/2 IF BHI 7 3/4 3 1/2 1.58 4 HWDP 41/2 IF 41/2 IF NAD 5 3 6 1/2 119.25 1 Jars 41/2 IF 41/2 IF WFD 6 3/16 2 1/4 1.70 32.07 19 HWDP 41/2 IF 41/2 IF NAD 5 3 6 1/2 566.58 12.250 BIT 1.34 BHA TOTAL LENGTH 879.22 REMARKS & COMMENTS DIESEL No accidents or spills. Next BOP Test 12 -13 -11 Diesel on Location day before 5,250 Flow check every stand SPR #1 125psi @ 2bpm -6239' MD (9.2 MW) Diesel Used Last 24 3,402 Max gas 45841' MD 359 units SPR #2 175psi @ 3bpm -6239' MD Diesel Received 9,500 demob swaco de watering unit - thawing complete -tanks ready to move - boiler gone TOTAL DIESEL 11,348 PERSONNEL ON LOCATION COMPANY NOTE COUNT HOURS TOTAL COMPANY NOTE COUNT HOURS TOTAL Nabors Rig Crew 24 12.5 300 PRA 0 PRA DSM 2 12 24 Mi Mud engineer 2 12 24 PRA Safety 1 1 1 PRA Geol 1 12 12 Aimm Vac 5 10 50 BHI DD Drillers 2 12 24 MI Swaco Dewatering 2 12 24 Baker mwd 2 12 24 Cam Rig Mud loggers 4 24 96 Aimm roust 4 12 48 AK Heater Boiler 2 8 16 - TOTAL COUNT 49 TOTAL MAN HOURS 643 FROM TO LENGTH JOINT DESCRIPTION G/L 95' 95' Welded 20" 133# X -56 Welded Conductor Pipe RT 115' 2956' BTCM 13 3/8" 68# J -55 (shoe @2956' , Float collar @2912') CINGSA - DAILY DRILLING REPORT Date: 12/4/2011 Well Name IP Storage 1 1 BHA #: Mill DSM Days: Steve Ratcliff Current Depth: 7573' Location: Kenai, AK Tar 9060' Cell Phone: (907) 230 - 9902 Depth: ig Ftg /24hrs. 1186' Field /Pool: Cannery Loop / Sterling C Conductor: Nabors Alaska -Rig 105 E N q Mike Grubb Days Since 8 Present Back ream out of hole @ Rig Phone: (907) 398 -3156 Cell Phone: (509) 431 -7988 Spud Operation: DRILLING DATA BIT # SIZE MFG TYPE SER # JETS IN OUT FEET BIT GRADE TOTAL HOURS FT /HR 2 121/4 ` HCC QD505XX 702287 8X12 2967' 4616' 34.7 132.70 CASING 1 SIZE 1 WEIGHT 1 GRADE 1 THREAD DEPTH 1 CEMENT COMPANY 1 DATE 1 - Conductor: 20" 133# X -56 Welded _ 95' N/A July - Surface: 13 3/8 68 J -55 BTC -M 2956' SLB 29 -Nov - Intermediate - Liner - Tubing - PUMP #1 PUMP #2 MUD PROPERTIES: MUD ADDITIVES: 1 Daily Cumulative PUMP MANF Gardner Denver PUMP MANF Gardner Denver _ WEIGHT 9.3 GEL (50 lb bag) 420 PUMP TYPE _ PZ - PUMP TYPE PZ - _ FUNNEL VIS 47 S. ASH (50 Ib bag) 0 LINER SIZE _ 6 LINER SIZE 6 _ R600 /R300 43/31 KLA -GUARD 3 3 STOKE LNGTH 9 STOKE LNGTH 9 R200 /R100 22/16 LOTORQ /776 1320 1322 SPM _ 95 SPM _ 95 R6 /R3 9/8 ASPHASOL SUPREME 87 209 GPS 0.08 GPS _ 0.0755 PV 12 CONQOR 404 4 _ GPM 609 GPM 609 YP 19 POTASSIUM CHLORIDE 328 813 PSI 2010 psi 2010 GELS 10/13/17 FLOWZAN 20 53 BTMS UP MIN 65 BTMS UP MIN 65 API FLUID LOSS 6.7 PAC 34 77 TOT CIR MIN _ 117 TOT CIR MIN _ 117 CAKE APH /HT 1/ CF -DESCO II 81 AVDP: 218.00 AVDP: 18.00 SOLIDS 7 MYACIDE GA25 0 AVDC: 127.90 AVDC: 127.90 OIL/WATER 4/89 GEL -X 0 AVDC: AVDC: - SAND 0.25 CITRIC ACID / SAFE CARB 96 118 DRILL STRING 8. HYDRAULICS PH 9.2 RESINEX 18 97 STRING WT. 125 WOB 15 Pf /Mf .10/1.2 CAUSTIC SODA 12 _ 25 PICKUP 172 RPM 100 CHLORIDES 32000 SODIUM BICARBONATE /mrtabisulf 41 SLACK OFF _ 87 TFA 0.884 CA 280 BARITE / NUT PLUG / G SEAL 182 MAX PULL 175 HSP 391/25.7 VOL. PIT - (BBL) 655 LIQUIDS 2589 ECD 9.43 PRESS DROP 5 HOLE - (BBL) 1099 SOLIDS (BBLS hauled by AIMM) 247 2167 DCOD 11 JET VEL 137/1.2 API SCREEN 4x200 Daily Mud Cum. 2165 8201 ACTIVITY SUMMARY TIME SUMMARY Start 1 Finish Hours { Description Detail Daily 1 Cumulative 6:00 _ 11:30 5.50 Drill 12 1/4 hole section F/ 6387' - 6813' 120rpm 600gpm RU /RD 133.00 P/U 165, S/O 90, ROT 90, ROP 140, WOB 17, Tq 13 - 16 Drilling 15.00 84.00 _ 1860 / 1900 PSI , ART3.0 hrs Service /Repair Rig 0.50 5.50 11:30 13:00 1.50 Pump 40 bbl sweep @ 625gpm @ 2000PSI, Min cuttings Surveys 0.00 return, P/U 155, S/O 105 (improved) Tripping 6.50 _ 53.00 13:00 16:00 3.00 Drilling ahead F/ 6813' -7100' 120 rpm , 625gpm 1950 psi Change BHA 0.00 P/U 175, S/O 93, ROT125, ROP 120, WOB 12, Tq 12k Casing Crew _ 14.00 _ Ream back thru - 7179',7211',7223',7460' Cementing Crew 3.00 16:00 16:30 _ 0.50 Sevice and Lube top drive , crown & blocks ,Rig watch down Logging _ 0.00 16:30 23:00 _ 6.50 Drilling ahead F/ 7100' -7573' 120 rpm , 625gpm 1950 psi NU /ND Test _ 15.00 _ P/U 175, S/087ROT125, ROP 120, WOB 14, Tq 18 -20k DST /Core _ 0.00 23:00 23:30 0.50 Start showing losses, spot 40# per bbl calcium carb Icm pill , Well Control 0.00 _ well static, WOC _ 0.00 23:30 _ 6:00 6.50 Back ream out of hole ,100 rpm ,15 k TQ, 350 gpm @800psi Safety Meetings 0.00 _ Gas while back reaming up to 306 units,work thru tight spots Drilling Cement 0.00 5472' -5663' Circ /Other 2.00 _ 22.50 24.00 TOTAL 24.00 330.00 BOTTOM HOLE ASSEMBLY QTY ITEM CONN DOWN 1 CONN UP VENDOR O.D. I.D. GAUGE NECK LENGTH (TOTAL LENGTH 1 Steering Head, FIex,NM,XO 6 5 /8reg T -2 BHI j 9 1/2 12.25 8.67 23.67 1 Ontrac, Stab, BCPM, Stop T -2 6 5 /8reg BHI 8 1/4 12 1/8 1.70 37.73 1 NM Filter Sub 6 5 /8reg 6 5 /8reg BHI 8 1/8 2 7/8 5.44 1 NMX -over Float Sub 6 5 /8reg 6 5/8 H -90 BHI 7 13/16 2 7/8 2.76 1 CSNNDP 6 5/8 H -90 6 5/8 H -90 BHI 6 3/4 2 7/8 7 3/4 1.86 29.97 1 CSNNDP 6 5/8 H -90 6 5/8 H -90 BHI 6 3/4 2 7/8 7 1/4 3.00 29.24 1 CSNNDP 6 5/8 H -90 6 5/8 H -90 BHI 6 3/4 2 7/8 7 1/2 3.22 29.59 1 Steel X -over 6 5/8 H -90 4 1/2 IF BHI 7 3/4 3 1/2 1.58 _ 4 HWDP 41/2 IF _ 41/2 IF NAD _ 5 3 6 1/2 119.25 1 Jars 41/21F 41/21F WFD 6 3/16 2 1/4 1.70 32.07 19 HWDP 4 1/2 IF 4 1/2 IF _ NAD 5 3 6 1/2 566.58 12.250 BIT 1.34 _ BHA TOTAL LENGTH 879.22 REMARKS & COMMENTS DIESEL No accidents or spills. Next BOP Test 12 -13 -11 Diesel on Location day before 11,348 Flow check every stand SPR #1 135psi @ 2bpm -6813' MD (9.3 MW) Diesel Used Last 24 2,683 Max gas @7503' MD 975 units SPR #2 185psi @ 3bpm -6813' MD Diesel Received TOTAL DIESEL 9,953 PERSONNEL ON LOCATION _ COMPANY NOTE COUNT _ HOURS TOTAL COMPANY NOTE COUNT HOURS TOTAL Nabors Rig Crew 24 12.5 300 PRA 0 PRA DSM 2 12 24 Mi Mud engineer 2 12 24 PRA Safety 1 1 _ 1 _ PRA _ Geol 1 12 12 Aimm Vac 4 10 40 BHI DD Drillers 2 12 24 MI Swaco Dewatering 2 12 _ 24 Baker mwd 2 12 24 _ Cam Rig Mud loggers 4 24 96 Aimm roust 4 12 48 AK Heater Boiler 2 8 16 - TOTAL COUNT 48 TOTAL MAN HOURS 633 FROM TO LENGTH JOINT DESCRIPTION G/L 95' 95' Welded 20" 133# X -56 Welded Conductor Pipe RT 115' 2956' BTCM 13 3/8" 68# J -55 (shoe ©2956' , Float collar @2912') CINGSA - DAILY DRILLING REPORT Date: 12/5/2011 Well Name IIP Storage 1 BHA #: 24) DSM Days: Steve Ratcliff Current Depth: 7573' Location: Kenai, AK Tar 9060' Cell Phone: (907) 230 - 9902 Depth: ig Ftg /zahrs. 0 Field /Pool: Cannery Loop / Sterling C Contractor: Nabors Alaska -Rig 105 E N ghts: Mike Grubb Days Since 9 Present Run 9 5/8 casing @ 1280' Rig Phone: (907) 398 -3156 Cell Phone: (509) 431 -7988 Spud Operation: DRILLING DATA BIT # SIZE MFG TYPE SER # JETS IN OUT FEET BIT GRADE TOTAL HOURS FT/HR 2 121/4 HCC QD505XX 702287 8X12 2967' 7573' 4606' ,- n,,a -., 34.7 132.70 CASING 1 SIZE 1 WEIGHT 1 GRADE [ THREAD 1 DEPTH 1 CEMENT COMPANY 1 DATE 1 - Conductor: 20" 133# X -56 Welded 95' N/A July - Surface: 13 3/8 68 J -55 BTC -M 2956' SLB 29 -Nov - Intermediate - Liner - Tubing - PUMP #1 IPUMP #2 IMUD PROPERTIES: IMUD ADDITIVES: ! Daily 11Cumulative PUMP MANF Gardner Denver PUMP MANF Gardner Denver WEIGHT 9.3 GEL (50 lb bag) 420 PUMP TYPE PZ - PUMP TYPE PZ - FUNNEL VIS 47 S. ASH (50 Ib bag) 0 LINER SIZE 6 LINER SIZE 6 R600 /R300 43/31 KLA -GUARD 3 STOKE LNGTH 9 STOKE LNGTH 9 R200 /R100 22/16 LOTORQ /776 1322 SPM 95 SPM 95 R6 /R3 9/8 ASPHASOL SUPREME 209 GPS 0.08 GPS 0.0755 PV 12 CONQOR 404 4 GPM 609 GPM 609 YP 19 POTASSIUM CHLORIDE 813 PSI 2010 PSI 2010 GELS 10/13/17 FLOWZAN 53 BTMS UP MIN 65 BTMS UP MIN 65 API FLUID LOSS 6.7 PAC 77 TOT CIR MIN 117 TOT CIR MIN 117 CAKE APH /HT 1/ CF -DESCO II 81 AVDP: 218.0( AVDP: 218.00 SOLIDS 7 MYACIDE GA25 0 AVDC: 127.90 AVDC: 127.90 OIL/WATER 4/89 GEL -X 0 AVDC: AVDC: - SAND 0.25 CITRIC ACID / SAFE GARB 118 DRILL STRING & HYDRAULICS PH 10 RESINEX 97 15 Pf/Mf WT. 125 WOB 1 Mf .10/1.2 CAUSTIC SODA 25 / PICK UP 172 RPM 100 CHLORIDES _ 31000 SODIUM BICARBONATE /mrtabisulf 41 SLACK OFF 87 TFA 0.884 CA 320 BARITE / NUT PLUG / G SEAL 110 292 MAX PULL 175 HSP 391/25.7 VOL. PIT - (BBL) 531 LIQUIDS 2589 ECD 9.43 PRESS DROP 5 HOLE - (BBL) 1116 SOLIDS (BBLS hauled by AIMM) 221 2388 DCOD 11 JET VEL 137/1.2 API SCREEN 4x200 Daily Mud Cum. 331 8532 ACTIVITY SUMMARY 1 TIME SUMMARY Start I Finish 1 Hours 1 Description 1Detail 1 Daily 1 Cumulative 6:00 12:30 6.50 Continue back ream from 5472'- 2956' Shoe RU /RD 133.00 12:30 13:30 1.00 Circ bottoms up, pump dry job ,Blow down TD and BPA Drilling 84.00 13:30 19:00 5.50 Continue POH F/2956' , stand back hwdp and jars, L/D BHA Service /Repair Rig 5.50 19:00 20:00 1.00 Pull wear ring , set test plug Surveys 0.00 20:00 21:00 1.00 Change rams to 9 5/8" Tripping 13.00 66.00 21:00 22:00 1.00 Test rams to 250/2500 psi for 5 min.(good test)pull test plug Change BHA 0.00 22:00 22:30 0.50 Drift BOP with hanger ,mark landing joint Casing Crew 8.00 22.00 22:30 2:30 4.00 Prep to run 9 5/8 casing , C/O bales , R/U stabing board, Cementing Crew 3.00 spiders ,elevators ,pick up line , R/U Weathorford Logging 0.00 2:30 6:00 3.50 Run 9 5/8 casing as per program , check floats , Run in hole NU /ND Test 2.00 17.00 to 1280' DST /Core 0.00 Wet Control 0.00 W OC 0.00 Safety Meetings 0.00 Drilling Cement 0.00 Circ /Other 1.00 23.50 24.00 TOTAL 24.00 354.00 BOTTOM HOLE ASSEMBLY QTY 1 ITEM [ CONN DOWN 1 CONN UP T VENDOR 1 O.D. T I.D. I GAUGE 1 NECK 1 LENGTH 'TOTAL LENGTH 1 Steering Head, FIex,NM,X0 6 5 /8reg T -2 BHI 9 1/2 12.25 8 67 23.67 1 Ontrac, Stab, BCPM, Stop T -2 6 5 /8reg BHI 8 1/4 12 1/8 1.70 37.73 1 NM Filter Sub 6 5 /8reg 6 5 /8reg BHI 8 1/8 2 7/8 5.44 1 NMX -over Float Sub 6 5 /8reg 6 5/8 H -90 BHI 7 13/16 2 7/8 2.76 1 CSNNDP 6 5/8 H -90 6 5/8 H -90 BHI 6 3/4 2 7/8 7 3/4 1.86 29.97 1 CSNNDP 6 5/8 H -90 6 5/8 H -90 BHI 6 3/4 2 7/8 7 1/4 3.00 29.24 1 CSNNDP 6 5/8 H -90 6 5/8 H -90 BHI 6 3/4 2 7/8 7 1/2 3.22 29.59 1 Steel X -over 6 5/8 H -90 4 1/2 IF BHI 7 3/4 3 1/2 1.58 4 HWDP 41/2 IF 41/2 IF NAD 5 3 6 1/2 119.25 1 Jars 41/2 IF 41/2 IF WFD 6 3/16 2 1/4 1.70 32.07 19 HWDP 41/2 IF 41/2 IF NAD 5 3 6 1/2 566.58 12.250 BIT 1.34 BHA TOTAL LENGTH 879.22 REMARKS & COMMENTS DIESEL 2 bbls losses per hour to hole Diesel on Location day before 9,953 Flow check every stand Diesel Used Last 24 1,558 Diesel Received _ TOTAL DIESEL 8,401 PERSONNEL ON LOCATION COMPANY NOTE COUNT HOURS TOTAL COMPANY NOTE COUNT HOURS TOTAL Nabors Rig Crew 24 12.5 300 PRA 0 PRA DSM 2 12 24 Mi Mud engineer 2 12 24 PRA Safety 1 1 1 PRA Geol 1 12 12 Aimm Vac 4 10 40 BHI DD Drillers 2 12 24 MI Swaco Dewatering 2 12 24 Baker mwd 2 12 24 Cam Rig _ Mud loggers 4 24 96 Aimm roust 2 12 24 AK Heater Boiler 2 8 16 - TOTAL COUNT 46 I TOTAL MAN HOURS 609 FROM TO LENGTH JOINT DESCRIPTION G/L 95' 95' Welded 20" 133# X -56 Welded Conductor Pipe RT 115' 2956' BTCM 13 3/8" 68# J -55 (shoe @2956' , Float collar @2912') CINGSA - DAILY DRILLING REPORT Date: 12/6/2011 Well Name IOU Storage 1 BHA #: 9 5/8 lb DSM Days: Steve Ratcliff Current Depth: 7573' Location: Kenai, AK Tar 9060' Cell Phone: (907) 230 - 9902 Depth: Ftg /24hrs. 0 Field /Pool: Cannery Loop / Sterling C ContRractor: Nabors Alaska -Rig 105 E N i g h t Mike Grubb Days Since 10 Present Cementing 9 5/8" Casing Rig Phone: (907) 398 -3156 Cell Phone: (509) 431 -7988 Spud Operation: DRILLING DATA BIT # SIZE MFG TYPE SER # JETS IN OUT FEET BIT GRADE TOTAL HOURS FT /HR 2 12 1/4 HCC QD505XX 702287 8X12 2967' 7573' 4606' w a -.- 34.7 132.70 CASING SIZE I WEIGHT 1 GRADE 1 THREAD 1 DEPTH 1 CEMENT COMPANY DATE 1 - Conductor: 20" F 133# X -56 Welded j 95' N/A July - Surface: 13 3/8 68 J -55 BTC -M 2956' SLB 29 -Nov - Intermediate 9 5/8 40 L -80 BTC -M 7563 SLB 5 -Dec - Liner - Tubing - PUMP #1 PUMP #2 MUD PROPERTIES: IMUD ADDITIVES: Daily !Cumulative PUMP MANF Gardner Denver PUMP MANF 1 Gardner Denver WEIGHT 9.3 GEL (50 lb bag) 420 PUMP TYPE PZ - PUMP TYPE PZ - FUNNEL VIS 49 S. ASH (50 Ib bag) 0 LINER SIZE 6 LINER SIZE 6 R600 /R300 42/30 KLA -GUARD 3 STOKE LNGTH 9 STOKE LNGTH 9 R200 /R100 22/16 LOTORQ /776 1322 SPM 95 SPM 95 R6 /R3 9/8 ASPHASOLSUPREME 209 GPS 0.08 GPS L 0.0755 PV I 12 CONQOR 404 4 GPM GPM 0 YP 18 POTASSIUM CHLORIDE 813 PSI PSI 0 GELS 10/13/16 FLOWZAN 53 BTMS UP MIN BTMS UP MIN 0 API FLUID LOSS 6.6 PAC 77 TOT CIR MIN TOT CIR MIN 117 CAKE APH /HT 1/ CF -DESCO II 15 96 AVDP: 218.00 AVDP: 218.00 SOLIDS 7 MYACIDE GA25 0 AVDC: 127.90 AVDC: 127.90 OIL/WATER 4/89 GEL -X 0 AVDC: I AVDC: I SAND 0.25 CITRIC ACID / SAFE CARB 118 DRILL STRING & HYDRAULICS PH 10 RESINEX 97 STRING WT. IWOB Pf /Mf .10/.90 CAUSTIC SODA 25 PICK UP RPM CHLORIDES 31500 SODIUM BICARBONATE /mrtabisulf 15 56 SLACK OFF _ TFA CA 280 BARITE / NUT PLUG / G SEAL 292 MAX PULL _ HSP VOL. PIT - (BBL) 588 LIQUIDS 2589 ECD PRESS DROP HOLE - (BBL) 985 SOLIDS (BBLS hauled by AIMM) 0 2388 DCOD JET VEL API SCREEN 4x200 Daily Mud Cum. 30 8562 ACTIVITY SUMMARY TIME SUMMARY Start 1 Finish ] Hours I Description (Detail I Daily I Cumulative 6:00 9:30 3.50 Run 9 5/8 casing as per program from 1280' -2934' RU /RD 133.00 9:30 10:30 1.00 Circulate bottoms up Drilling 84.00 10:30 23:30 13.00 Cont. RIH with 9 5/8 casing F/2934' -7563' Service /Repair Rig 5.50 Wash from 7475' thru b -5 coal to to 7563' and land out CSG Surveys 0.00 23:30 1:30 2.00 R/D Weathorford csg equipment. Prep and R/U for cement Tripping 66.00 R/U cement head Change BHA 0.00 1:30 3:30 2.00 Circulate bottoms up , Pre job with cementers Casing Crew 22.00 44.00 3:30 6:00 2.50 Test lines to 4000 psi ,pump 40 bbls mud push , pump 230 Cementing Crew 3.00 bbls lead cement @12 ppg @ 5bpm 500psi, Pump 46bbls Logging 0.00 ! Tail cement @14ppg, chase plug with 5bbls water, displace NU /ND Test 17.00 �`' with rig pump,slowed to 3.75 bpm do to slight fluid loss DST /Core 0.00 )r Well Control 0.00 t S Lead cmt = 12 ppg class A cement WOC 0.00 s Tail cement = 14 ppg FIexSTONE Safety Meetings 0.00 _ Drilling Cement 0.00 Circ /Other 2.00 25.50 24.00 TOTAL 24.00 378.00 BOTTOM HOLE ASSEMBLY QTY I ITEM I CONN DOWN I CONN UP I VENDOR 1 O.D. 1 I.D. I GAUGE I NECK I LENGTH (TOTAL LENGTH BHA TOTAL LENGTH o.00 REMARKS & COMMENTS DIESEL FMC tested CLU -2 tree & landing ring on CLU -5 Diesel on Location day before 8,401 Diesel Used Last 24 1,174 Diesel Received TOTAL DIESEL 7,227 PERSONNEL ON LOCATION COMPANY NOTE - COUNT HOURS TOTAL COMPANY NOTE _ COUNT HOURS TOTAL Nabors Rig Crew 24 12.5 300 PRA - 0 PRA DSM 2 12 24 Mi Mud engineer 2 12 24 PRA Safety 1 1 1 PRA Geol 1 12 12 Aimm Vac 4 12 48 BHI DD Drillers 2 12 24 MI Swaco Dewatering_ 2 _ 12 24 Baker mwd _ 2 12 24 _ Cam Rig Mud loggers 2 24 48 _ Aimm roust 2 12 24 _ AK Heater Boiler 0 8 0 - TOTAL COUNT 44 TOTAL MAN HOURS 553 • • 1 1 1 FROM TO LENGTH JOINT DESCRIPTION G/L 95' 95' Welded 20" 133# X -56 Welded Conductor Pipe RT 115' 2956' BTCM 13 3/8" 68# J -55 (shoe (x)2956' , Float collar (x72912') Intermediate FROM TO LENGTH JOINTS DESCRIPTION 7573.00 7563.00 10.00 Rat hole 7563.00 7561.00 2.00 Float shoe- Davis Lynch 501 Down jet Float shoe 7561.00 7478.00 83.03 2 9 5/8 40# L -80 BTC 7478.00 7475.90 2.10 9 5/8 Btc -Davis Lynch SB Float Collar 7475.90 3375.10 4100.80 102 9 5/8 40# L -80 BTC 3375.10 3372.80 2.30 9 5/8 L -80 -BTC Davis Lynch stage collar- type777 -hy 3372.80 22.09 3350.71 81 9 5/8 40# L -80 BTC 22.80 22.80 RKB to Load shoulder 1 CINGSA - DAILY DRILLING REPORT Date: 12/7/2011 Well Name Storage 1 BHA #: 3 DSM Days: Steve Ratcliff Current Depth: 7573' Location: Kenai, AK Tar 9060' Cell Phone: (907) 230 - 9902 Depth: Ftg /24hrs. 0 Field /Pool: Cannery Loop / Sterling C Condactor: Nabors Alaska -Rig 105 E Nghts: Mike Grubb Days Since 11 Present RIH W/ BHA #3 Rig Phone: (907) 398 -3156 Cell Phone: (509) 431 -7988 Spud Operation: DRILLING DATA BIT # SIZE MFG TYPE SER # JETS IN OUT FEET BIT GRADE TOTAL HOURS FT /HR 3 81/2 HCC HCR503ZX 7114328 3- 13's,3 -14's 7573 CASING 1 SIZE 1 WEIGHT 1 GRADE THREAD DEPTH 1 CEMENT COMPANY 1 DATE 1 - Conductor. 20" 133# X -56 Welded 95' N/A July - Surface: 13 3/8 68 J -55 BTC -M 2956' SLB 29 -Nov - Intermediate 9 5/8 40 L -80 BTC -M 7563 SLB 5 -Dec - Liner - Tubing - PUMP #1 PUMP #2 JMUD PROPERTIES: 'MUD ADDITIVES: 1 Daily Cumulative PUMP MANF Gardner Denve PUMP MANF Gardner Denver WEIGHT 9.3 GEL (50 Ib bag) 420 PUMP TYPE PZ - PUMP TYPE PZ - FUNNEL VIS 49 S. ASH (50 Ib bag) 0 LINER SIZE 6 LINER SIZE 6 R600 /R300 42/28 KLA -GUARD 3 STOKE LNGTH 9 STOKE LNGTH 9 R200 /R100 21/15 LOTORQ /776 1322 SPM 95 SPM 95 R6 /R3 8/6 ASPHASOL SUPREME 209 GPS 0.08 GPS 0.0755 PV 14 CONQOR 404 4 GPM GPM 0 YP 14 POTASSIUM CHLORIDE 813 PSI PSI 0 GELS 8/10/13 FLOWZAN 53 BTMS UP MIN BTMS UP MIN API FLUID LOSS 6.6 PAC 77 TOT CIR MIN TOT CIR MIN CAKE APH /HT 1/ CF -DESCO II 96 AVDP: AVDP: SOLIDS 7 MYACIDE GA25 O AVDC: AVDC: OIUWATER 4/89 GEL -X 0 AVDC: AVDC: SAND 0.25 CITRIC ACID / SAFE CARE 118 DRILL STRING & HYDRAULICS PH _ 9.1 RESINEX STRING WT. WOB Pf /Mf .10/.90 CAUSTIC SODA BM PICK UP RPM CHLORIDES 29000 SODIUM BICARBONATE /mrtabisulf SLACK OFF TFA CA 320 BARITE / NUT PLUG / G SEAL 160 452 MAX PULL HSP VOL. PIT - (BBL) 731 LIQUIDS 552 3141 ECD PRESS DROP HOLE - (BBL) 575 SOLIDS (BBLS hauled by AIMM) 0 2388 DCOD JET VEL API SCREEN 4x200 Daily Mud Cum. 712 9274 ACTIVITY SUMMARY TIME SUMMARY Start Finish Hours Description !Detail Daily Cumulative 6:00 8:00 2.00 Continue cementing 1st stage ,continue chase DV plug W/ RU /RD 133.00 561.8 bbls, Bump plug,bleed pressure, check floats, load Drilling 84.00 closing plug. Open stage collar @2697 psi. Service /Repair Rig 1.00 6.50 8:00 9:00 1.00 Rig circulate 197 bbls.(App. 80bbls contaminated cement Surve s 0.00 dumped to cellar Trig sing 8.00 74.00 9:00 11:00 2.00 Start 2nd stage, pump 5bbls water, pump 40bbls mud push , Change BHA 0.00 pump 201 bbls -12ppg cmt ,drop closing plug, chase closing Casing Crew 44.00 plug W /5bbls water, displace W/ rig 251 bbls @ 5bpm bump Cementing Crew 8.00 11.00 plug 100% returns. (Cement In Place @ 11:08) Logging 0.00 11:00 14:00 3.00 Flush stack and lines, Blow down surface equip. NU /ND Test 4.00 21.00 14:00 16:00 2.00 Install pack off, test t/3000psi for 15 minutes (good test) DST /Core 0.00 16:00 18:30 2.50 Change rams to 5x7 Var Rams, Inspect BOP for cement Well Control 0.00 18:30 19:30 1.00 Service and lube top drive, load pipe shed W/51 joints WOC 0.00 19:30 21:00 1.50 Test pipe rams and Annular 250/2500Psi -5 min W /5" and 7" Safet Meetings 0.00 21:00 22:00 1.00 Pull test plug , Install 9 1/16" wear bushing Drilling Cement 0.00 22:00 0:00 2.00 Check measure and p/u BHA ,Start M/U BHA #3 Circ /Other 3.00 28.50 0:00 6:00 6.00 RIH W /BHA #3 & HWDP T/982' ores to cut and slio TOTAL 24.00 402.00 BOTTOM HOLE ASSEMBLY QTY I ITEM CONN DOWN CONN UP I VENDOR O.D. I.D. GAUGE NECK LENGTH TOTAL LENGTH Ill BHA TOTAL LENGTH o.00 REMARKS & COMMENTS DIESEL Diesel on Location day before 8,401 Diesel Used Last 24 1,174 Diesel Received _ TOTAL DIESEL 7,227 PERSONNEL ON LOCATION COMPANY NOTE COUNT HOURS TOTAL COMPANY NOTE COUNT HOURS _ TOTAL Nabors Rig Crew 24 12.5 300 _ PRA _ _ 0 PRA DSM 2 12 24 _ Mi Mud engineer 2 12 24 PRA Safet 1 1 1 _ PRA Geol 1 12 12 Aimm Vac 4 12 48 _ BHI DD Drillers _ 2 12 _ 24 _ MI Swaco Dewatering 2 12 24 Baker mwd 2 12 24 Cam Rig Mud loggers 2 24 48 Aimm roust 2 12 24 AK Heater Boiler 0 8 0 - TOTAL COUNT 44 TOTAL MAN HOURS 553 • • FROM TO LENGTH JOINT DESCRIPTION G/L 95' 95' Welded 20" 133# X -56 Welded Conductor Pipe RT 115' 2956' BTCM 13 3/8" 68# J -55 (shoe @2956' , Float collar @2912') Intermediate FROM TO LENGTH JOINTS DESCRIPTION 7573.00 7563.00 10.00 Rat hole 7563.00 7561.00 2.00 Float shoe- Davis Lynch 501 Down jet Float shoe 7561.00 7478.00 83.03 2 9 5/8 40# L -80 BTC 7478.00 7475.90 2.10 9 5/8 Btc -Davis Lynch SB Float Collar 7475.90 3375.10 4100.80 102 9 5/8 40# L -80 BTC 3375.10 3372.80 2.30 9 5/8 L -80 -BTC Davis Lynch stage collar- type777 -hy 3372.80 22.09 3350.71 81 9 5/8 40# L -80 BTC 22.80 22.80 RKB to Load shoulder CINGSA - DAILY DRILLING REPORT Date: 1 • .. BHA #: 3 11111 DSM Days: Steve Ratcliff Current Depth: 8000 ♦ Target 9560' • Depth: DSM Ftg/24hrs. 427 _ 1 Field/Pool: • Contractor: • • • Days Since Present . Ahead • 8,000' Rig Phone: • 1 Cell Phone: (509) 431 S.ud ••• . . DRILLING DATA �� • JETS IN BIT- TOTAL HOURS 3- 13's,3 -14'5 7573 6.9 61.00 CASING SIZE WEIGHT GRADE THREAD DEPTH CEMENT COMPANY DATE Conductor: 1 X -56 • • N/A �' Surface: 13 3/8 .: 2956' SLB 29 - Intermediate • 1 �L-80 7563 SLB 5 -Dec Liner IllaillIlli Tubing PUMP #1 PUMP #2 MUD PROPERTIES: Dail Cumulative PUMP MANF Gardner Denve PUMP MANF Gardner Denver WEIGHT 9.4 1 lb bag) 420 PUMP TYPE PZ - • FUNNEL VIS 52 1 lb •.. 1 LINER SIZE 6 LINER SIZE 6 R600 /R300 45/29 - • STOKE 9 STOKE LNGTH • R200/R100 24/16 • •-• SPM 57 7/5 ASPHASOL SUPREME 209 GPS 0.08 GPS 0.055 16 CONQOR 414 4 GPM 57 GPM 57 vi= 13 POTASSIUM CHLORIDE PSI • 1 PSI 1300 GELS 6/9/12 FLOWZAN � BTMS UP MIN 45.5 BTMS UP MIN 45.5 API FLUID • 7.6 PAC • • 1/ CF-DESCO II 8 104 .- 11 .- 11 SOLIDS 9 MYAC1DE GA25 1 1 . 1 • 4/87 1 AVDC !i . 0.25 11 DRILL STRING & HYDRAULICS 9.3 RESINEX 97 STRING WT. • - .10/.70 CAUSTIC SODA PICK UP RPM :1 CHLORIDES 28500 SODIUM BICARBONATE/mrtabisulf SLACK B !I OFF TFA 0.8399 320 MAX 799 • 0 3141 . • . • "- 519 SOLIDS (BBLS hauled by 2388 . •. 1 • API SCREEN 4x200 Daily Mud Cum. 127 9401 ACTIVITY SUMMARY TIME SUMMARY Start Finish Hours Descri.tion Detail Dail Cumulative . 6:00 8:00 2.00 Cut & slip drill line 133.00 8:00 10:30 2.50 P/U 51 jts 5" DP/ fill pipe • 8.50 1 1 1.00 RIH f/2608' - 3278', wash & ROT down 3373', tag DV tool Service/Re sair Rig 2.00 8.50 1 1 1.00 Drill DV collar f/ 3373- 3375', P/U wt 100, S/O wt 75, ROT85 0.00 1 1 1.00 R/U to test csg, 2500 #, 30 min, test good • eine 7.50 81.50 1 1 4.00 RIH f/ 3375' - 7476' 1 1 1 1 I 2.00 Tag float collar @ 7476' & drill out good cmt • Crew 44.00 Tag shoe @ 7571' clean out 1/7571, firm cmt below shoe Cementin. Crew 11.00 WOB 4 -6k, 60 rpm Loosing 0.00 1 20:00 DriII 20' new hole f/ 7573' - 7593' (pumped 15 bbl LCM, 40# • - while drilling) slowed to 350 gpm, 1200psi • • bottoms up @ 350gpm 1200psi • • P/U into csg, perform FIT test, pump @ .5 bbl /min, 3.7 bbls WOC 0.00 IRMM •rea over @ 1481psi @ 9.4mw= 14.9 EMW ( 3bbls back) Safet Meetings 0.00 22:00 6:00 8.00 Drilrf7' /593' 8000' 80- R1-7gpm L!JIIIIl1 . Cement 3.00 3.00 P/U 130, S/O 87, ROT 115, Tq 9 -12k, ART 9.5, AST 1 • OT • 11 I1 1 •. 11 BOTTOM HOLE ASSEMBLY • • • • • CONN UP • • O.D. D. NECK TOTAL LENGTH 1 • 8 1/2 1.07 •. •.•. •• 6 314 1.71 • 24.17 NM Flex Pony 4 1/2 90 4 1/2 H_ 90 6 3/4 6 3/4 2.23 9.20 33.37 Stabilizer 4 1/2 H NM 90 91 6 3/16 6 3/16 2.34 1 38.42 NM . String • 1 6 3/4 6 3/4 2.84 41.26 Stop/On •: 7 7 1.45 33.15 74.41 • - . 6 3/4 6 3/4 2.50 16.28 90.69 Mag . • Sub 7 7 122.68 NM Filter Sub 4 1/2 IF 4 1/2 IF 6 7/8 6 7/8 5.29 90 6 3/4 6 3/4 2.03 130.00 .• p ip 91 5 5 1.95 X-over Steel Sub 4 1/2 • 1 6 3/8 6 3/8 1.70 Well • - 6 7/8 6 7/8 2.46 12.83 264.28 .- _ 5 5 ill 119.25 383.53 6 3/16 6 3/16 1.70 32.07 61 .• 41/21F 5 5 6 1/2 566.58 982.18 TOTAL BHA REMARKS & COMMENTS DIESEL Flow check ever connection Diesel on Location da before Diesel Used Last 24 2,671 Diesel Received TOTAL DIESEL 4,556 PERSONNEL ON LOCATION COMPANY • TE COUNT HOURS TOTAL COMPANY NOTE COUNT HOURS TOTAL • 12.5 287.5 PRA 1 PRA DSM 2 12 24 Mi Mud engineer 2 12 PRA Ge 12 MI DD Drillers 2 12 36 • D - . mwd 12 Cam • Mud loggers 2 24 48 Aimm roust 12 24 AK Heater • - 0 TOTAL COUNT 43 TOTAL MAN HOURS 540.5 1 • FROM TO LENGTH JOINT DESCRIPTION G/L 95' 95' Welded 20" 133# X -56 Welded Conductor Pipe RT 115' _ 2956' BTCM 13 3/8" 68# J -55 (shoe 02956' , Float collar @,2912') Intermediate FROM TO LENGTH JOINTS DESCRIPTION 7573.00 7563.00 10.00 Rat hole 7563.00 7561.00 2.00 Float shoe- Davis Lynch 501 Down jet Float shoe 7561.00 7478.00 83.03 2 9 5/8 40# L -80 BTC 7478.00 7475.90 2.10 9 5/8 Btc -Davis Lynch SB Float Collar 7475.90 3375.10 4100.80 102 9 5/8 40# L -80 BTC 3375.10 3372.80 2.30 9 5/8 L -80 -BTC Davis Lynch stage collar- type777 -hy 3372.80 22.09 3350.71 81 9 5/8 40# L -80 BTC 22.80 22.80 RKB to Load shoulder CINGSA - DAILY DRILLING REPORT Date: 12/9/2011 Well Name 411-1 Storage 1 BHA #: 3111 DSM Days: Steve Ratcliff Current Depth: 8638 Location: Kenai, AK Tar 9560' Cell Phone: (907) 230 - 9902 Depth: Ftg/24hrs. 638 Field /Pool: Cannery Loop / Sterling C Contractor: Nabors Alaska -Rig 105 E Nights Stephen Ratcliff Days Since 13 Present Wiper Trip F/ 8638' to Shoe Rig Phone: (907) 398 -3156 Cell Phone: (281) 914 -6250 Spud Operation: DRILLING DATA BIT # SIZE MFG TYPE SER # JETS IN OUT FEET BIT GRADE TOTAL HOURS FT /HR 3 81/2 HCC HCR503ZX 7114328 3- 13's,3 -14's 7573 417 6.9 61.00 CASING 1 SIZE 1 WEIGHT 1 GRADE 1 THREAD 1 DEPTH 1 CEMENT COMPANY 1 DATE] - Conductor: 20" 133# X -56 Welded 95' N/A July - Surface: 13 3/8 68 J -55 BTC -M 2956' SLB 29 -Ncv - Intermediate 9 5/8 40 L -80 BTC -M 7563 SLB 5 -Dec - Liner - Tubing - PUMP #1 PUMP #2 IMUD PROPERTIES: 'MUD ADDITIVES: Daily Cumulative PUMP MANF Gardner Denver PUMP MANF Gardner Denver WEIGHT 9.5 GEL (50 Ib bag) 420 PUMP TYPE PZ PUMP TYPE PZ - FUNNEL VIS 60 S. ASH (50 lb bag) 0 LINER SIZE 6 LINER SIZE 6 R600 /R300 58/39 KLA -GUARD 3 _ STOKE LNGTH 9 STOKE LNGTH 9 R200 /R100 39/21 LOTORQ /776 /STEEL LUBE 334 1660 SPM 57 SPM 57 R6 /R3 9/7 ASPHASOL SUPREME 209 GPS 0.08 GPS 0.0755 PV 19 CONQOR 404 4 8 GPM 57 GPM 57 YP 20 POTASSIUM CHLORIDE 154 967 PSI 1300 PSI 1300 GELS 12/21/24 FLOWZAN _ 9 62 BTMS UP MIN 44.5 BTMS UP MIN 45.5 API FLUID LOSS 5.6 PAC 26 103 - TOT CIR MIN 123.9 TOT CIR MIN 153 CAKE APH /HT 1/ CF -DESCO II 104 AVDP: 157.00 AVDP: 138.00 SOLIDS 10 MYACIDE GA25 0 AVDC: 213.70 AVDC: 167.20 OIL /WATER 4/86 GEL -X 0 AVDC: AVDC: - SAND 0.25 CITRIC ACID / SAFE CARB 161 379 DRILL STRING & HYDRAULICS PH 9.1 RESINEX _ _ 97 STRING WT. WOB 12 Pf /Mf .10/.50 CAUSTIC SODA _ 3 28 PICK UP RPM 60 CHLORIDES 31500 SODIUM BICARBONATE /mrtabisulf 71 SLACK OFF TFA 0.8399 CA 320 BARITE / NUT PLUG / G SEAL 452 MAX PULL HSP 211/12.1 VOL. PIT - (BBL) 1216 LIQUIDS (BBLS hauled) _ 3141 ECD PRESS DROP 5 HOLE - (BBL) 580 SOLIDS (BBLS hauled by AIMM) 126 2514 DCOD JET VEL 51/.9 API SCREEN 4x200 Daily Mud Cum. 817 10218 ACTIVITY SUMMARY 1 TIME SUMMARY Start Fi nish 1 Hours 1 Description 1Detail 1 Daily 1 Cumulative 6:00 19:00 13.00 Drilling f/ 8,000' - 8,638'. Rot 65 -100 rpm, 9 -12K torq, RU /RD 133.00 ROP -80, 3 -11k WOB, 64/64spm, 414gpm, 1720psi, Drilling _ 13.00 105.50 Rot wt -114k, P /U -152k, S /O -95k. Service /Repair Rig 8.00 16.50 19:00 21:00 2.00 Back ream F/ 8638' - 8063'. Rot- 60rpm, 64/64spm, 414gpm Surveys 0.00 21:00 5:00 8.00 Lost Top Drive communication. RIG DOWNTIME while Tripping _ 2.00 83.50 trouble shooting lost TD communication. Top Drive handler, Change BHA 0.00 Link Tilt, and Back Up Wrench inoperable. Circulate and Casing Crew 44.00 recip while troubleshooting top drive. Cementing Crew _ 11.00 5:00 6:00 1.00 Backream out hole F/ 8063' - 7787' Logging _ 0.00 NU /ND Test 23.00 _ Trouble shoot TD lost communication problems. Checked DST /Core 0.00 wiring, powered down PLC. Worked through elec. issues, Well Control _ 0.00 changed comm cables in service loop. Check individual WOC _ - 0.00 connections in attempt to regain communication. Regain Safety Meetings 0.00 communication and top drive functioning. Drilling Cement 3.00 Circ /Other 29.50 24.00 TOTAL 23.00 449.00 BOTTOM HOLE ASSEMBLY QTY j ITEM I CONN DOWN I CONN UP I VENDOR O.D. 1 I.D. I GAUGE 1 NECK 1 LENGTH TOTAL LENGTH _ 8 1/2" HCR503ZX Bit 4 1/2" reg _ HCC 8 1/2 _ 1.07 1.07 Motor Steerable 1.0 deg 4 1/2" reg 4 1/2 H90 _ 6 3/4 8 3/8 1.71 23.10 24.17 NM Flex Pony 4 1/2 H90 4 1/2 H_90 6 3/4 6 3/4 2.23_ 9.20 _ 33.37 NM String Stabilizer 4 1/2 H_90 4 1/2 H_90 6 3/16 6 3/16 8 3/8 2.34 5.05 38.42 NM X -over 4 1/2 H90 4 1/2 IF 6 3/4 6 3/4 2.84 41.26 Stop /On Trak/Stab /BCPM 4 1/2 IF T2 7 7 8 3/8 1.45 33.15 74.41 ORD /CCTV T2 T2 6 3/4 6 3/4 8 3/8 2.50 16.28 90.69 Mag Trak /Stop Sub T2 4 1/2 IF 7 7 8 3/8 31.99 122.68 NM Filter Sub 4 1/2 IF 4 1/2 IF 6 7/8 6 7/8 5.29 127.97 NM X -over 4 1/2 IF 4 1/2 H90 6 3/4 6 3/4 2.03 _ 130.00 4 NM CSDP 4 1/2 H_90 4 1/2 H_90 5 5 6 3/8 1.95 119.75 249.75 X -over Steel Sub 4 1/2 H90 4 1/2 IF 6 3/8 6 3/8 1.70 251.45 Well Commander 4 1/2 IF 4 1/2 IF 6 7/8 6 7/8 2.4E 12.83 264.28 4 HWDP 41/2 IF 4 1/2 IF 5 5 6 1/2 119.25 383.53 Jars 41/21F 41/21F 6 3/16 6 3/16 1.7C 32.07 415.60 19 HWDP 41/2 IF 4 1/2 IF 5 5 6 1/2 566.58 982.18 BHA TOTAL LENGTH 982.18 REMARKS & COMMENTS DIESEL Flow check every connection. Diesel on Location day before 4,556 No accidents or spills. Diesel Used Las': 24 2,104 Diesel Received 9,462 SPR @ 8638' P -1, 26 spm @ 190, 40 spm @ 290, P -2, 26 spm @ 200, 40 spm @ 290 TOTAL DIESEL 11,914 PERSONNEL ON LOCATION COMPANY NOTE COUNT HOURS TOTAL COMPANY NOTE COUNT HOURS TOTAL • Nabors Rig Crew 24 12.5 300 Baker Directional 2 24_ 48 PRA DSM 2 24 48 Baker LWD 2 12 24 PRA Safety /PM 2 1 2 Aimm Roustabout 2 12 24 PRA Geologist 1 24 24 Weaver Trucking 4 4 16 MI Swaco Mud Engineer 2 12 24 _ 0 Canrig Mud Loggers 2 24 48 0 Aimm Vac Trucks 3 12 36 - TOTAL COUNT 43 TOTA,L MAN HOURS 594 • • FROM TO LENGTH JOINT DESCRIPTION G/L 95' 95' Welded 20" 133# X -56 Welded Conductor Pipe RT 115' 2956' BTCM 13 3/8" 68# J -55 (shoe @2956' , Float collar @2912') Intermediate FROM TO LENGTH JOINTS DESCRIPTION 7573.00 7563.00 10.00 Rat hole 7563.00 7561.00 2.00 Float shoe- Davis Lynch 501 Down jet Float shoe 7561.00 7478.00 83.03 2 9 5/8 40# L -80 BTC 7478.00 7475.90 2.10 9 5/8 Btc -Davis Lynch SB Float Collar 7475.90 3375.10 4100.80 102 9 5/8 40# L -80 BTC 3375.10 3372.80 2.30 9 5/8 L -80 -BTC Davis Lynch stage collar- type777 -hy 3372.80 22.09 3350.71 81 9 5/8 40# L -80 BTC 22.80 22.80 RKB to Load shoulder CINGSA - DAILY DRILLING REPORT Date: 12/10/2011 Well Name Storage 1 BHA #: DSM Days Steve Ratcliff Current Depth: 9414 Location: Kenai, AK Tar 9807' Cell Phone: (907) 230 - 9902 Depth: Ftg /24hrs. 776 Field /Pool: Cannery Loop / Sterling C Contractor: Nabors Alaska -Rig 105 E Nights Stephen Ratcliff Days Since 14 Present Drill ahead F/ 9414' I Rig Phone: (907) 398 -3156 Cell Phone: (281) 914 -6250 Spud Operation: DRILLING DATA BIT # SIZE MFG TYPE SER # JETS IN OUT FEET BIT GRADE TOTAL HOURS ' FT /HR 3 81/2 HCC HCR503ZX 7114328 3- 13's,3 -14's 7573 417 6.9 61.00 CASING SIZE I WEIGHT' GRADE THREAD DEPTH CEMENT COMPANY 1 DATE - Conductor: 20" 133# X -56 Welded 95' N/A July - Surface: 13 3/8 68 J -55 BTC -M 2956' SLB 29 -Nov - Intermediate 9 5/8 40 L -80 BTC -M 7563 SLB 5 -Dec - Liner - Tubing - PUMP #1 PUMP #2 MUD PROPERTIES: MUD ADDITIVES: Daily (Cumulative PUMP MANF Gardner Denver PUMP MANF Gardner Denver WEIGHT _ 9.3 GEL (50 Ib bag) 420 PUMP TYPE PZ - PUMP TYPE PZ - FUNNEL VIS 60 S. ASH (50 Ib bag) _ 0 LINER SIZE 6 LINER SIZE 6 R600/R300 _ 46/31 KLA -GUARD 3 STOKE LNGTH 9 STOKE LNGTH 9 R200/R100 21/16 LOTORQ /776 /STEEL LUBE 664 2324 SPM 125 SPM 57 R6 /R3 7/5 ASPHASOLSUPREME 60 269 GPS 6.87 GPS 6.87 PV _ 15 CONQOR 404 4 12 GPM _ 412 GPM 412 YP _ 16 POTASSIUM CHLORIDE 106 1073 PSI 1740 PSI _ 1 740 GELS 9/16/29 FLOWZAN 4 _ 66 BTMS UP MIN 47.4 BTMS UP MIN 45.5 _ API FLUID LOSS 5.2 PAC 36 139 TOT CIR MIN 137.9 TOT CIR MIN 153 CAKE APH /HT 1/ CF -DESCO II 104 AVDP: 157.00 AVDP: 138.00 SOLIDS 9 MYACIDE GA25 0 AVDC: 213.70 AVDC: 167.20 OIUWATER _ 4/87 GEL -X 0 AVDC: AVDC: - SAND .10 CITRIC ACID / SAFE GARB 264 643 DRILL STRING & HYDRAULICS PH _ 8.9 RESINEX 97 STRING WT. 113 WOB 10 Pf /Mf .10/.50 CAUSTIC SODA 5 33 PICK UP 153 RPM 60 CHLORIDES 31000 SODIUM BICARBONATE /mrtabisulf 71 SLACK OFF 90 TFA 0.8399 CA 280 BARITE / NUT PLUG / G SEAL _ 452 MAX PULL 160 HSP 211/12.1 VOL. PIT - (BBL) 732 LIQUIDS (BBLS hauled) 3141 ECD 9.75 PRESS DROP 5 HOLE - (BBL) 621 SOLIDS (BBLS hauled by AIMM) 62 2576 DCOD 5 JET VEL 51/.9 API SCREEN 4x200 Daily Mud Cum. 1205 11423 ACTIVITY SUMMARY TIME SUMMARY Start 1 Finish 1 Hours Description Detail 1 Daily 1 Cumulative 6:00 7:00 1.00 Backream out hole F/ 7787' - 7584'. Spot 40 bbl LCM pill. RU /RD 133.00 7:00 7:30 _ 0.50 Circ & cond mud. Service Top Drive. Drilling 16.25 121.75 7:30 10:00 2.50 RIH F/ 7488' - 8542'. Service /Repair Rig 16.50 10:00 10:30 0.50 Circ & cond mud. Pump 50 bbl LCM pill. Wash down F/ Surveys 0.00 8542' - 8638' Tripping 3.50 87.00 10:30 12:00 1.50 Drill ahead F/ 8638' - 8720'. Max gas @ Bus - 1165 units Change BHA 0.00 Rot wt -110k, P /U -147k, S /O -85k, WOB -5k, 80rpm, 411gpm, Casing Crew 44.00 1600- 1800psi, Tq - 10 -13k, Cementing Crew 11.00 12:00 23:30 11.50 Drill ahead F/ 8720' - 9266'. P /U -153k, S /O -90k, Rot -115k, Logging 0.00 405gpm, 1880psi, ROP - 80 fph max. B/R each stand. NU /ND Test 23.00 23:30 23:45 0.25 WOO from geologist on modifying directional plan DST /Core 0.00 23:45 1:00 1.25 Drill ahead F/ 9266' - 9313' Well Control 0.00 1:00 4:00 3.00 WOO from geologist on modifying directional plan WOC 0.00 4:00 6:00 2.00 Drill ahead F/ 9313' - 9414' Safety Meetings 0.00 Drilling Cement 3.00 Circ /Other 4.25 33.75 24.00 TOTAL 24.00 473.00 BOTTOM HOLE ASSEMBLY QTY ] ITEM I CONN DOWN I CONN UP 1 VENDOR 1 O.D. 1 I.D. f GAUGE I NECK LENGTH TOTAL LENGTH 1 8 1/2" HCR503ZX Bit 4 1/2" reg HCC 8 1/2 1.07 1.07 1 Motor Steerable 1.0 deg 4 1/2" reg 4 1/2 H_90 6 3/4 8 3/8 1.71 23.10 24.17 1 NM Flex Pony 4 1/2 H_90 4 1/2 H90 _ 6 3/4 6 3/4 2.23 9.20 33.37 1 NM String Stabilizer 4 1/2 H_90 4 1/2 H90 6 3/16 6 3/16 8 3/8 2.34 5.05 38.42 1 NM X -over 4 1/2 H90 4 1/2 IF 6 3/4 6 3/4 2.84 41.26 1 Stop /On Trak/Stab /BCPM 4 1/2 IF T2 _ 7 7 8 3/8 1.45 33.15 74.41 1 ORD /CCN T2 T2 6 3/4 6 3/4 8 3/8 2.50 16.28 90.69 1 Mag Trak/Stop Sub T2 4 1/2 IF 7 7 8 3/8 31.99 122.68 1 NM Filter Sub 4 1/2 IF 4 1/2 IF 6 7/8 6 7/8 5.29 127.97 1 NM X -over 4 1/2 IF 4 1/2 H90 6 3/4 6 3/4 2.03 130.00 4 NM CSDP 4 1/2 H90 4 1/2 H_90 5 5 6 3/8 1. 95 119.75 249.75 1 X -over Steel Sub 4 1/2 H90 4 1/2 IF 6 3/8 6 3/8 1.70 251.45 1 Well Commander 4 1/2 IF 4 1/2 IF 6 7/8 6 7/8 2.46 12.83 264.28 4 HWDP 4 1/2 IF 41/2 IF 5 5 6 1/2 119.25 383.53 1 Jars 4 1/2 IF 41/2 IF 6 3/16 6 3/16 1.70 32.07 415.60 19 HWDP 41/2 IF 41/2 IF 5 5 6 1/2 566.58 982.18 BHA TOTAL LENGTH 982.18 REMARKS & COMMENTS DIESEL Flow check every connection. Diesel on Location day before 11,914 No accidents or spills. Diesel Used Last 24 2,001 Diesel Received SPR @ 9917' P -1, 26 spm @ 210, 40 spm @ 260, P -2, 26 spm @ 210, 40 spm © 260 TOTAL DIESEL 9,913 PERSONNEL ON LOCATION COMPANY NOTE COUNT HOURS TOTAL COMPANY NOTE COUNT HOURS TOTAL Nabors Rig Crew 24 12.5 300 Baker Directional 2 24 48 PRA DSM _ 2 24 48 Baker LWD 2 12 24 PRA Safety /PM 2 1 _ 2 Aimm _ Roustabout 2 12 24 PRA Geologist _ 1 24 24 _ Weaver Trucking 2 1 2 MI Swaco Mud Engineer 2 12 24 United Rentals Rentals 1 1 1 Canrig Mud Loggers 2 24 48 0 Aimm Vac Trucks 4 12 48 - TOTAL COUNT 42 TOTAL MAN HOURS 593 1 0 1 1 1 1 FROM TO LENGTH JOINT DESCRIPTION G/L 95' 95' Welded 20" 133# X -56 Welded Conductor Pipe RT 115' 2956' BTCM 13 3/8" 68# J -55 (shoe @2956' , Float collar @2912') Intermediate FROM TO LENGTH JOINTS DESCRIPTION 7573.00 7563.00 10.00 Rat hole 7563.00 7561.00 2.00 Float shoe- Davis Lynch 501 Down jet Float shoe 7561.00 7478.00 83.03 2 9 5/8 40# L -80 BTC 7478.00 7475.90 2.10 9 5/8 Btc -Davis Lynch SB Float Collar 7475.90 3375.10 4100.80 102 9 5/8 40# L -80 BTC 3375.10 3372.80 2.30 9 5/8 L -80 -BTC Davis Lynch stage collar- type777 -hy 3372.80 22.09 3350.71 81 9 5/8 40# L -80 BTC 22.80 22.80 RKB to Load shoulder 1 CINGSA - DAILY DRILLING REPORT Date: 12/11/2011 Well Name U Storage 1 BHA #: DSM Days: Steve Ratcliff Current Depth: 9661 Location: Kenai, AK Tar 9661' Cell Phone: (907) 230 - 9902 Death: Ftg /24hrs. 247 Field /Pool: Cannery Loop / Sterling C ContractoRig Alaska - Rig 105 E Nights: Stephen Ratcliff Days Since Present 15 Lay down BHA for CBL Wireline Rig Phone: (907) 398 - 3156 Cell Phone: (281) 914 - 6250 Spud Operation: DRILLING DATA BIT # SIZE MFG TYPE SER # JETS IN OUT FEET BIT GRADE TOTAL HOURS FT /HR 3 81/2 HCC HCR503ZX 7114328 3- 13's,3 -14's 7573 9661 417 GIG - X- I -WT 6.9 61.00 CASING SIZE WEIGHT GRADE THREAD DEPTH CEMENT COMPANY DATE - Conductor. 1 133# X -56 Welded 95' N/A ME - Surface: 68 J -55 BTC -M 2956' SLB 29 -Nov - Intermediate 40 L -80 BTC -M 7563 SLB 5 -Dec - Liner - Tubing - PUMP #1 PUMP #2 MUD PROPERTIES: MUD ADDITIVES: 1 Daily (Cumulative PUMP MANF Gardner Denver PUMP MANF Gardner Denver WEIGHT 9.3 GEL (50 lb bag) 420 PUMP TYPE PZ - PUMP TYPE PZ - FUNNEL VIS 60 S. ASH (50 lb bag) 0 LINER SIZE 6 LINER SIZE 6 R600 /R300 48/32 KLA -GUARD 3 STOKE LNGTH 9 STOKE LNGTH 9 R200 /R100 22/17 LOTORQ /776 /STEEL LUBE 8 2332 SPM 125 SPM 57 R6 /R3 7/5 ASPHASOL SUPREME 269 GPS 6.87 GPS 6.87 PV 16 CONQOR 404 12 GPM 412 GPM 412 YP 16 POTASSIUM CHLORIDE 60 1133 PSI 1740 PSI 1740 GELS 10/16/28 FLOWZAN 18 84 BTMS UP MIN 19.4 BTMS UP MIN 45.5 API FLUID LOSS 5.7 PAC _ 25 164 TOT CIR MIN 77.8 TOT CIR MIN 153 CAKE APH /HT 1/ CF -DESCO II 104 AVDP: 157.00 AVDP: 138.00 SOLIDS 9 MYACIDE GA25 0 AVDC: 190.30 AVDC: 167.20 OIL/WATER 4/87 GEL -X 0 AVDC: AVDC: SAND .10 CITRIC ACID / SAFE CARB 135 778 DRILL STRING & HYDRAULICS PH 8.7 RESINEX 97 STRING WT. 113 WOB 10 Pf /Mf .10/.40 CAUSTIC SODA 2 35 PICK UP 153 RPM 60 CHLORIDES 32500 SODIUM BICARBONATE /mrtabisulf 71 SLACK OFF 90 TFA 0.8399 CA 240 BARITE / NUT PLUG / G SEAL 80 532 MAX PULL 160 HSP 207 VOL. PIT - (BBL) 515 LIQUIDS (BBLS hauled) 3141 ECD 9.64 PRESS DROP 3 HOLE - (BBL) 684 SOLIDS (BBLS hauled by AIMM) 231 2807 DCOD 5 JET VEL 50/0.9 API SCREEN 4x200 Daily Mud Cum. 559 11982 ACTIVITY SUMMARY TIME SUMMARY Start Finish Hours Description Detail Daily Cumulative 6:00 10:30 4.50 Drill ahead F/ 9414' - 9661' (TD). P /U -160k, S /O -94k, RU/RD 133.00 Rot -116k, 402 GPM, 1700 psi. Drilline 121.75 10:30 11:30 1.00 Circ bottoms up and Rot & Recip. - -. - ' . • 1 19:30 8.00 Back ream F/ 9661'- 7563'. 55rpm, 9k torque, 400gpm, - Surve s 0.00 1800psi, Rot -120k. Work tight spots @ 9198' & 8437'. _ Tri. sin. 13.00 100.00 rI 21:00 1.50 CBU at 7563'. Pump70 bbl high vis sweep at 400 gpm. Change BHA 3.50 3.50 i 21:00 21:30 0.50 Service top drive, blocks, and crown. Casing Crew 44.00 2:30 5.00 POH F/ 7563' - 960' to run Baker Atlas CBL. - Cementin. Crew 11.00 i 4:00 1.50 Lay down HWDP. _ Lo•.in• 0.00 4:00 6:00 2.00 Lay down BHA and LWD tools. _ NU /ND Test 23.00 DST /Core 0.00 Well Control 0.00 W OC 0.00 Safet Meetin.s 0.00 Drilling Cement 4.50 7.50 Circ /Other 2.50 36.25 24.00 TOTAL 24.00 497.00 BOTTOM HOLE ASSEMBLY QTY 1 ITEM 1 CONN DOWN 1 CONN UP 1 VENDOR 1 O.D. 1 I.D. 1 GAUGE 1 NECK 1 LENGTH (TOTAL LENGTH 1 8 1/2" HCR503ZX Bit 4 1/2" reg HCC 8 1/2 1.07 1.07 1 Motor Steerable 1.0 deg 4 1/2" reg 4 1/2 H_90 6 3/4 8 3/8 1.71 23.10 24.17 1 NM Flex Pony 4 1/2 H90 4 1/2 H_90 6 3/4 6 3/4 2.23 9.20 33.37 1 NM String Stabilizer 4 1/2 H90 4 1/2 H_90 6 3/16 6 3/16 8 3/8 2.34 5.05 38.42 1 NM X -over 4 1/2 H 90 4 1/2 IF 6 3/4 6 3/4 2.84 41.26 1 Stop /On Trak/Stab /BCPM 4 1/2 IF T2 7 7 8 3/8 1.45 33.15 74.41 1 ORD /CCN T2 T2 6 3/4 6 3/4 8 3/8 2.50 16.28 90.69 1 Mag Trak/Stop Sub T2 4 1/2 IF 7 7 8 3/8 31.99 122.68 1 NM Filter Sub 4 1/2 IF 4 1/2 IF 6 7/8 6 7/8 5.29 127.97 1 NM X -over 4 1/2 IF 4 1/2 H90 6 3/4 6 3/4 2.03 130.00 4 NM CSDP 4 1/2 H_90 4 1/2 H_90 5 5 6 3/8 1.95 119.75 249.75 1 X -over Steel Sub 4 1/2 H90 4 1/2 IF 6 3/8 6 3/8 1.70 251.45 1 Well Commander 4 1/2 IF 4 1/2 IF 6 7/8 6 7/8 2.46 12.83 264.28 4 HWDP 4 1/2 IF 41/2 IF 5 5 6 1/2 119.25 383.53 1 Jars 41/2 IF 41/2 IF 6 3/16 6 3/16 1.70 32.07 415.60 19 HWDP 41/2 IF 41/2 IF 5 5 6 1/2 566.58 982.18 BHA TOTAL LENGTH 982.18 REMARKS & COMMENTS DIESEL TD Called by geologist at 9,661'. Diesel on Location day before 9,913 No accidents or spills. Diesel Used Last 24 1,885 PJSM's for all jobs. Diesel Received SPR @ 9917' P -1, 26 spm @ 210, 40 spm @ 260, P -2, 26 spm © 210, 40 spm © 260 TOTAL DIESEL 8,028 PERSONNEL ON LOCATION COMPANY NOTE COUNT HOURS TOTAL COMPANY NOTE COUNT HOURS TOTAL Nabors Rig Crew 24 12.5 300 Baker Directional 2 24 48 PRA DSM 2 24 48 Baker LWD 2 12 24 PRA Safety /PM 2 1 2 Aimm Roustabout 2 12 24 PRA Geologist 1 24 24 Baker Wireline 4 3 12 MI Swaco Mud Engineer 2 12 24 0 Canrig Mud Loggers 2 24 48 0 Aimm Vac Trucks 4 12 48 - TOTAL COUNT 43 TOTAL MAN HOURS 602 • • FROM TO LENGTH JOINT DESCRIPTION G/L 95' 95' Welded 20" 133# X -56 Welded Conductor Pipe RT 115' 2956' BTCM 13 3/8" 68# J -55 (shoe @2956' , Float collar @2912') Intermediate FROM TO LENGTH JOINTS DESCRIPTION 7573.00 7563.00 10.00 Rat hole 7563.00 7561.00 2.00 Float shoe- Davis Lynch 501 Down jet Float shoe 7561.00 7478.00 83.03 2 9 5/8 40# L -80 BTC 7478.00 7475.90 2.10 9 5/8 Btc -Davis Lynch SB Float Collar 7475.90 3375.10 4100.80 102 9 5/8 40# L -80 BTC 3375.10 3372.80 2.30 9 5/8 L -80 -BTC Davis Lynch stage collar- type777 -hy 3372.80 22.09 3350.71 81 9 5/8 40# L -80 BTC 22.80 22.80 RKB to Load shoulder I CINGSA - DAILY DRILLING REPORT Date. 12/12/2011 well Name 41111U Storage 1 BHA #: -� DSM Days: Steve Ratcliff Current Depth: 9661 Location: Kenai, AK Target 9661' Cell Phone: (907) 230 - 9902 Depth: ig Ftg /24hrs. 0 Field/Pool: Cannery Loop / Sterling C contractor. Nabors Alaska -Rig 105 E Nights: Stephen Ratcliff Days Since 16 Present RIH with 7" Liner Rig Phone: (907) 398 -3156 Cell Phone: (281) 914 -6250 Spud Operation: DRILLING DATA BIT # SIZE MFG TYPE SER # JETS IN OUT FEET BIT GRADE TOTAL HOURS FT/HR 3 81/2 HCC HCR503ZX 7114328 3- 13's,3 -14's 7573 _ 9661 _ 417 • f-G- x- 1-wI-1 6.9 _ 61.00 CASING 1 SIZE 1 WEIGHT 1 GRADE THREAD 1 DEPTH 1 CEMENT COMPANY 1 DATE 1 - Conductor: 20" 1334 X -56 Welded 95' N/A July - Surface: 13 3/8 68 J -55 BTC -M 2956' SLB 29 -Nov - Intermediate 9 5/8 40 L -80 BTC -M 7563 SLB 5 -Dec - Liner - Tubing - PUMP #1 PUMP #2 MUD PROPERTIES: MUD ADDITIVES: Daily Cumulative PUMP MANF Gardner Denver PUMP MANF Gardner Denver WEIGHT _ 9.3 GEL (50 Ib bag) 420 PUMP TYPE PZ - PUMP TYPE PZ - FUNNEL VIS 60 S. ASH (50 lb bag) 0 LINER SIZE _ 6 LINER SIZE 6 R600 /R300 48/32 KLA -GUARD 3 STOKE LNGTH 9 STOKE LNGTH 9 R200/R100 22/16 LOTORQ /776 /STEEL LUBE 2332 _ SPM 125 SPM 57 R6 /R3 7/5 ASPHASOLSUPREME _ 269 GPS 6.87 GPS 6.87 PV 16 CONQOR 404 _ 12 GPM 412 GPM 412 YP 16 POTASSIUM CHLORIDE 1133 PSI 1740 PSI 1740 GELS 9/15/26 FLOWZAN 84 BTMS UP MIN 19.4 BTMS UP MIN 45.5 API FLUID LOSS 5.6 PAC 164 TOT CIR MIN 77.8 TOT CIR MIN 153 CAKE APH /HT 1/ CF -DESCO II 104 AVDP: 157.00 AVDP: 138.00 SOLIDS 9 MYACIDE GA25 0 AVDC: _ 190.30 AVDC: 167.20 OIL /WATER - 4/87 GEL -X _ 0 AVDC: AVDC: SAND .10 CITRIC ACID / SAFE GARB 778 DRILL STRING & HYDRAULICS PH _ 8.7 RESINEX 97 STRING WT. 1 65 WOB _ - Pf /Mf .10/.40 CAUSTIC SODA 35 PICK UP 70 RPM _ - CHLORIDES 32000 SODIUM BICARBONATE /mrtabisulf 71 SLACK OFF 65 TFA _ 0.8399 CA 240 BARITE / NUT PLUG / G SEAL 532 MAX PULL 70 HSP - VOL. PIT - (BBL) 715 LIQUIDS (BBLS hauled) 3141 _ ECD - PRESS DROP - HOLE - (BBL) 703 SOLIDS (BBLS hauled by AIMM) 68 2875 DCOD 5 JET VEL - API SCREEN 4x200 Daily Mud Cum. 68 12050 ACTIVITY SUMMARY TIME SUMMARY Start Finish Hours Descri.tion Detail Daily Cumulative 6:00 9:30 3.50 Lay down BHA and LWD tools and clear rig floor. RU /RD 133.00 9:30 11:00 1.50 Rig up Baker Atlas Wireline. Drilling 121.75 - 11:00 _ 15:00 4.00 Run Baker Atlas wireline CBL. Service /Repair Rig 1.00 18.00 15:00 16:00 1.00 Rig down Baker Atlas Wireline, clear rig f oor. Surveys _ 0.00 16:00 18:00 2.00 Rig up to run 7" liner. Hold PJSM's with service companies Tripping 4.00 104.00 18:00 19:00 1.00 Clear snow and ice from derrick and sery ce rig. Change BHA 3.50 7.00 19:00 0:30 5.50 Pick up shoe tract, check float, and run 7" liner, fill every 5 Casing Crew _ 9.00 _ 53.00 _ joints. Cementing Crew 11.00 0:30 2:00 1.50 Pick up ZXP Packer, M /U, and circ liner volume. Logging 6.50 6.50 2:00 6:00 4.00 : _ with 7" liner - ' NU /ND Test _ _ 23.00 DST /Core 0.00 Well Control 0.00 _ W OC 0.00 Safety Meetings _ 0.00 Drilling Cement 7.50 _ CirclOther 36.25 24.00 TOTAL 24.00 521.00 BOTTOM HOLE ASSEMBLY QTY 1 ITEM 1 CONN DOWN CONN UP I VENDOR I O.D. I I.D. j GAUGE I NECK LENGTH f TOTAL LENGTH 1 8 1/2" HCR503ZX Bit I 4 1/2" reg HCC 8 1/2 1.07 1.07 1 Motor Steerable 1.0 deg 4 1/2" reg 4 1/2 H_90 6 3/4 8 3/8 1.71 23.10 _ 24.17 1 NM Flex Pony 4 1/2 H_90 4 1/2 H_90 6 3/4 6 3/4 2.23 9.20 _ 33.37 1 NM String Stabilizer 4 1/2 H90 4 1/2 H90 _ 6 3/16 6 3/16 8 3/8 2.34 5.05 38.42 1 NM X -over _ 4 1/2 H90 4 1/2 IF 6 3/4 6 3/4 2.84 41.26 1 Stop /On Trak/Stab /BCPM 4 1/2 IF T2 7 7 8 3/8 1.45 33.15 74.41 1 ORD /CCN T2 T2 _ 6 3/4 6 3/4 8 3/8 2.50 16.28 90.69 1 Mag Trak/Stop Sub T2 4 1/2 IF _ 7 7 8 3/8 31.99 122.68 1 NM Filter Sub 4 1/2 IF 4 1/2 IF 6 7/8 6 7/8 5.29 127.97 1 NM X -over _ 4 1/2 IF 4 1/2 H90 6 3/4 6 3/4 2.03 130.00 _ 4 NM CSDP 4 1/2 H_90 _ 4 1/2 H_90 5 5 6 3/8 1.95 119.75 249.75 1 X -over Steel Sub 4 1/2 H90 4 1/2 IF 6 3/8 6 3/8 1.70 _ 251.45 1 Well Commander 4 1/2 IF 4 1/2 IF 6 7/8 6 7/8 2.46 12.83 264.28 4 HWDP 41/2 IF 4 1/2 IF 5 5 6 1/2 119.25 383.53 _ 1 Jars 41/2 IF 41/2 IF 6 3/16 6 3/16 1.70 32.07 415.60 19 HWDP 41/2 IF 41/2 IF 5 5 6 1/2 566.58 982.18 BHA TOTAL LENGTH 982.18 REMARKS & COMMENTS DIESEL No accidents or spills. Diesel on Location day before _ 8,028 PJSM's for all jobs. _ Diesel Used Last 24 1,500 Diesel Received TOTAL DIESEL 6,528 PERSONNEL ON 'LOCATION COMPANY NOTE COUNT HOURS TOTAL _ COMPANY NOTE COUNT HOURS TOTAL Nabors Rig Crew 24 _ 12.5 300 Baker Directional 2 24 48 PRA DSM 2 24 48 Baker _ LWD 2 12 24 PRA Safety /PM 2 _ 1 2 Baker Wireline 4 8 32 PRA Geologist 1 _ 24 24 Baker Liners 1 24 24 _ MI Swaco Mud Engineer 2 _ 12 _ 24 Weatherford Casing 3 12 36 Canrig Mud Loggers 2 24 48 _ 0 Aimm Vac Trucks 4 12 48 - TOTAL COUNT 45 TOTAL MAN HOURS 658 0 • FROM TO LENGTH JOINT DESCRIPTION G/L 95' 95' Welded 20" 133# X -56 Welded Conductor Pipe RT 115' 2956' BTCM _13 3/8" 68# J -55 (shoe @2956' , Float collar 02912') Intermediate FROM TO LENGTH JOINTS DESCRIPTION 7573.00 7563.00 10.00 Rat hole 7563.00 7561.00 2.00 Float shoe- Davis Lynch 501 Down jet Float shoe 7561.00 7478.00 83.03 2 9 5/8 40# L -80 BTC 7478.00 7475.90 2.10 9 5/8 Btc -Davis Lynch SB Float Collar 7475.90 3375.10 4100.80 102 9 5/8 40# L -80 BTC 3375.10 3372.80 2.30 9 5/8 L -80 -BTC Davis Lynch stage collar- type777 -hy 3372.80 22.09 3350.71 81 9 5/8 40# L -80 BTC 22.80 22.80 RKB to Load shoulder CINGSA - DAILY DRILLING REPORT Date: 12/13/2011 well Name 1 --" ADU Storage 1 BHA #: • DSM Days: Steve Ratcliff Current Depth: 9661 Location: Kenai, AK Tar 9661' Cell Phone: (907) 230 - 9902 Depth: Ftg /24hrs. 0 Field /Pool. Cannery Loop / Sterling C conRactor: Nabors Alaska -Rig 105 E DSM Stephen Ratcliff Days Since 17 Present RIH w/ Mill Assembly FI 1685' Rig Phone: (907) 398 -3156 Cell Phone: (281) 914 -6250 Spud Operation: DRILLING DATA BIT # SIZE MFG TYPE 1 SER # JETS IN OUT FEET BIT GRADE TOTAL HOURS FT/HR 3 8 1/2 HCC HCR503ZX 7114328 3- 13's,3 -14's 7573 9661 _ 417 - cT- c- x- i -wT -T 6.9 61.00 CASING SIZE WEIGHT GRADE THREAD DEPTH CEMENT COMPANY 1 DATE 1 - Conductor: 20 _ 133# Welded 95' N/A July - Surface 13 3/8 _ 68 BTC -M 2956' SLB 29 -Nov - Intermediate 9 5/8 40 :1 BTC -M 7563 SLB 5 -Dec - Liner 7 20 :1 Vam Top 9659' SLB 12 -Dec - Tubing - PUMP #1 PUMP #2 MUD PROPERTIES: MUD ADDITIVES: Dail Cumulative PUMP MANF Gardner Denve PUMP MANF Gardner Denver • r 420 PUMP TYPE PZ - PUMP TYPE PZ - b- • 0 LINER SIZE 6 LINER SIZE 6 R600/R300 ' • " D 3 STOKE LNGTH 9 STOKE LNGTH 9 • •' • 2332 SPM SPM 0 R6/R3 7/5 ASPHASOL SUPREME 269 GPS GPS 0 PV 17 CONQOR 404 12 GPM _ GPM 0 YP 15 POTASSIUM CHLORIDE 130 1263 PSI PSI 0 GELS 10/15/26 • 6 90 BTMS UP MIN BTMS UP MIN 0 API FLUID LOSS 5.6 PAC 164 TOT CIR MIN TOT CIR MIN 0 CAKE APH/HT 1/ CF-DESCO II 15 119 AVDP: AVDP: - SOLIDS • MYACIDE GA25 0 AVDC: AVDC: _ - • 4/87 GEL-X 0 AVDC: AVDC: • 1 • 778 DRILL STRING & HYDRAULICS PH • / RESINEX 97 STRING WT. _ 65 WOB 1 CAUSTIC SODA 35 PICKUP 70 RPM _ - CHLORIDES 32000 SODIUM BICARBONATE/mrtabisulf 20 91 SLACK OFF _ 65 TFA _ 0.8399 CA 240 130 662 MAX PULL 70 HSP VOL. • • 3141 _ ECD - PRESS DROP HOLE - (BBL) 612 SOLIDS • by 902 3777 DCOD 5 1JET VEL 11 Daily Mud Cum. 1203 13253 ACTIVITY SUMMARY 1 TIME SUMMARY Start Finish Hours Description Detail L Cumulative 6:00 _ 8:00 2.00 _ RIH with 7" liner F/ 5582' - 7520'. Fill pipe every 10 stands. RU /RD 133.00 8:00 10:00 2.00 Circ & Condition, P/U single in string, M/U cement head to Drilling _ 121.75 single and lay down. Service /Reaair Rig _ 18.00 10:00 12:00 _ 2.00 RIH F/ 7520' - 9308'. P /U -165k, S /O -80k. Surveys 0.00 12:00 13:30 1.50 Pump & work pipe F/ 9308' - 9620'. P /U -175k, S /O -85k. Tripping _ 11.00 115.00 13:30 14:30 1.00 _ Install cement lines, M/U cement head and circ lines. Change BHA _ 7.00 _ 14:30 17:00 2.50 Tag bottom at 9661', CBU & recip pipe, 165gpm, 800psi Casing Crew _ 53.00 17:00 17:30 0.50 Hold PJSM, test cement lines to 1000psi & 4000 psi Cementing Crew _ 4.50 15.50 17:30 19:30 - 2.00 _ Pump 35 bbls of 11.5 ppg mudpush. Pump 74 bbls of 14.2 Logging _ 6.50 pDa Flexstone cernent. Drop dart and pump 210.5 bbls of NU /ND Test _ 23.00 9.3 ppg mud. Pump to 2200psi, ck float. CIP @ 19:24. DST /Core 0.00 19:30 20:30 1.00 Line up SLB, Pressure to 2600psi. Slack off 50k to set Well Control _ 0.00 hanger. Hanger is set at 7358. P/U 65k & pressure to 3800 psi to release running tool. Hold for 2 minutes. Blead press to 500psi and ck tool released. Set down 60k to set packer. Packer set at 7343'. Blead off SLB, line up rig to circulate. 20:30 21:30 1.00 Unsting from packer and circ at liner top @ 7343', 334 gpm. WOC _ 0.00 - 21:30 23:00 1.50 _ R/D rotating head, drop wiper ball in DP, CBU @ 336 gpm Safety Meetings _ 0.00 23:00 5:00 6.00 POH for polish mill run from 7343' to surface. Drilling Cement _ 7.50 5:00 6:00 1.00 L/D running tool, P/U Mill Assembly, & RIH F/ 1685' Circ /Other _ 8.50 44.75 24.00 See Remarks & Coments Below TOTAL 24.00 545.00 BOTTOM HOLE ASSEMBLY QTY 1 ITEM 1 CONN DOWN 1 CONN UP 1 VENDOR I O.D. I I.D. 1 GAUGE 1 NECK 1 LENGTH (TOTAL LENGTH BHA TOTAL LENGTH o.00 REMARKS & COMMENTS _ DIESEL No accidents or spills. PJSM's for all jobs. Diesel on Location day before _ 6,528 Cement In Place at 19:24. No cement returns at surface, rnudpush was seen at shakers. l/' Diesel Used Last 24 2,046 _ Diesel Received _ 0 TOTAL DIESEL 4,482 PERSONNEL ON LOCATION COMPANY NOTE COUNT HOURS TOTAL COMPANY NOTE _ COUNT HOURS TOTAL 1_ Nabors Rig Crew 24 12.5 300 Baker _ Directional _ 2 24 48 PRA DSM 2 24 48 Baker LWD 2 12 24 PRA Safety /PM 2 1 2 Baker Wireline 4 8 32 PRA Geologist 1 24 24 Baker Liners 1 24 24 MI Swaco Mud Engineer 2 12 24 Weatherford Casing 3 12 36 Canrig Mud Loggers 2 24 48 SLB Cementing 4 12 48 Aimm Vac Trucks 4 12 48 - TOTAL COUNT 49 TOTAL MAN HOURS 706 • FROM TO LENGTH JOINT DESCRIPTION G/L 95' 95' Welded 20" 133# X -56 Welded Conductor Pipe RT 115' 2956' BTCM 13 3/8" 68# J -55 (shoe x@2956' , Float collar @2912') Intermediate FROM TO LENGTH JOINTS DESCRIPTION 7573.00 7563.00 10.00 Rat hole 7563.00 7561.00 2.00 Float shoe- Davis Lynch 501 Down jet Float shoe 7561.00 7478.00 83.03 2 9 5/8 40# L -80 BTC 7478.00 7475.90 2.10 9 5/8 Btc -Davis Lynch SB Float Collar 7475.90 3375.10 4100.80 102 9 5/8 40# L -80 BTC 3375.10 3372.80 2.30 9 5/8 L -80 -BTC Davis Lynch stage collar- type777 -hy 3372.80 22.09 3350.71 81 9 5/8 40# L -80 BTC 22.80 22.80 RKB to Load shoulder Liner FROM TO LENGTH JOINTS DESCRIPTION 9661.28 9659.00 2.28 - Rat hole 9659.00 9658.45 0.55 - 7" BHI H266674701 - Float Shoe 9658.45 9617.20 41.25 1 7" 26# L -80 Vam Top HC with BHI - H266624704 - Internal Float Collar 9617.20 9575.82 41.38 1 7" 26# L -80 Vam Top HC with BHI - H266564702 - Landing Collar 9575.82 7372.52 2203.30 54 7" 26# L -80 Vam Top HC 7372.52 7367.62 4.90 - 7" Handling Pup - 26# L -80 Vam Top HC, 6.192" ID 7367.62 7365.89 1.73 - 7" Vam Top HC - RN Casing Nipple, 5.88" No -Go ID 7365.89 7358.69 7.20 - 7" X 9.625" FlexLock Hanger, 6.19" ID, BHI - 29410WW16 7358.69 7343.24 15.45 - "HR" ZXPN Liner Top Packer, w/ 10.81" Polished Seal Bore Assembly, 6.188" ID, BHI - H2964260W10 CINGSA - DAILY DRILLING REPORT Date: 12/14/2011 Well Name U Storage 1 BHA #: - DSM Days: Steve Ratcliff Current Depth: 9661 Location: Kenai, AK Tar 9661' Cell Phone: (907) 230 - 9902 Depth: Ftg /24hrs. 0 Field /Pool: Cannery Loop / Sterling C ContRractor: Nabors Alaska -Rig 105 E Nights: Stephen Ratcliff Days Since 18 Present POH and L/D Drill Pipe Rig Phone: (907) 398 -3156 Cell Phone: (281) 914 -6250 Spud Operation: DRILLING DATA BIT # SIZE MFG TYPE SER # JETS IN I OUT FEET BIT GRADE TOTAL HOURS FT /HR 3 81/2 HCC HCR503ZX 7114328 3- 13's,3 -14's 7573 9661 417 - 1- CT - G - x I - r 6.9 _ 61.00 CASING SIZE _ WEIGHT GRADE THREAD DEPTH CEMENT COMPANY DATE - Conductor: 20 133# X -56 Welded 95' N/A July - Surface: _ 13 3/8 68 J -55 BTC -M 2956' SLB 29 -Nov - Intermediate 9 5/8 40 L -80 BTC -M 7563 SLB 5 -Dec - Liner 7 _ 20 L -80 Vam Top 9659' SLB 12 -Dec - Tubing - PUMP #1 PUMP #2 IMUD PROPERTIES: IMUD ADDITIVES: 1 Daily Cumulative PUMP MANF _ Gardner Denver PUMP MANF Gardner Denver WEIGHT 8.6 GEL (50 Ib bag) 420 PUMP TYPE PZ - PUMP TYPE PZ - FUNNEL VIS 27 S. ASH (50 Ib bag) 0 LINER SIZE 6 LINER SIZE 6 R600 /R300 3/2 KLA -GUARD _ 3 STOKE LNGTH _ 9 STOKE LNGTH 9 R200/R100 _ 1/1 LOTORQ /776 /STEEL LUBE 2332 SPM _ - SPM _ - R6 /R3 1/1 ASPHASOL SUPREME 269 _ GPS _ - GPS - PV 1 CONQOR 404 12 GPM - GPM - YP 1 POTASSIUM CHLORIDE 250 _ 1513 PSI - PSI - GELS 1/1/1 FLOWZAN 90 BTMS UP MIN - BTMS UP MIN - _ API FLUID LOSS - PAC 164 TOT CIR MIN - TOT CIR MIN - _ CAKE APH /HT - CF -DESCO II 119 AVDP: - AVDP: _ - _ SOLIDS - MYACIDE GA25 0 AVDC: AVDC: - OIL /WATER /99 GEL -X 0 AVDC: AVDC: SAND - CITRIC ACID / SAFE GARB 778 DRILL STRING & HYDRAULICS PH 8.2 RESINEX 97 STRING WT. 115 WOB - Pf /Mf .10/.10 CAUSTIC SODA 35 PICK UP 147 RPM - _ CHLORIDES 24800 SODIUM BICARBONATE /mrtabisulf 91 SLACK OFF _ 95 _ TFA - CA 40 BARITE / NUT PLUG / G SEAL 25 687 _ MAX PULL _ 150 HSP - VOL. PIT - (BBL) 185 LIQUIDS (BBLS hauled) 736 3877 ECD - PRESS DROP - HOLE - (BBL) 598 SOLIDS (BBLS hauled by AIMM) _ 505 4282 DCOD 5 JET VEL - API SCREEN 4x200 Daily Mud Cum. 1516 14769 ACTIVITY SUMMARY TIME SUMMARY Start I Finish Hours Description Detail Daily Cumulative 6:00 9:00 3.00 RIH with Mill Assembly F/ 1685' - 7343'. RU /RD 133.00 9:00 10:00 1.00 Dress 7" X 9.625" Liner Tie Back receptacle @ 7343', Drilling 121.75 40 rpm, 4k -WOB, 7k -trq, P /U -147k, S /O -95k, Rot -115k. Service /Repair Rig 18.00 10:00 18:00 8.00 Clean out mud system, CBU @ 7343', 160gpm, 350psi. Surveys 0.00 Clean pits 1 -5, stage & load chemicals for completion fluid Tripping 9.50 124.50 Pressure test 7" liner to 2500 psi for 30 minutes. Test good. - Change BHA 7.00 18:00 22:00 4.00 Build 650 bbls completion fluid for displacement, Casing Crew 53.00 22:00 23:30 1.50 Displace mud with completion fluid. Pump 40 bbls water Cementing Crew 15.50 spacer. Pump 509 bbls of completion fluid, 101 spm, 691 Logging 6.50 psi, 7200 strokes. NU /ND Test 23.00 23:30 6:00 6.50 POH F/ 7343' and lay down drill pipe. DST /Core 0.00 Well Control 0.00 W OC 0.00 Safet Meetings 0.00 Drilling Cement 1.00 8.50 Circ /Other 13.50 58.25 24.00 See Remarks & Coments Below TOTAL 24.00 569.00 BOTTOM HOLE ASSEMBLY QTY I ITEM I CONN DOWN I CONN UP I VENDOR 1 O.D. I I.D. I GAUGE I NECK I LENGTH TOTAL LENGTH BHA TOTAL LENGTH o.00 REMARKS & COMMENTS DIESEL No accidents or spills. PJSM's for all jobs. Diesel on Location day before 4,482 Pressure test 7" Liner to 2500 psi for 30 minutes. Good test. Diesel Used Last 24 1,067 Diesel Received 0 TOTAL DIESEL 3,415 PERSONNEL ON LOCATION COMPANY NOTE COUNT HOURS TOTAL COMPANY NOTE COUNT HOURS TOTAL Nabors Rig Crew 24 12.5 300 Baker Liners 1 12 12 PRA DSM 2 24 48 0 PRA Safety /PM 2 1 2 0 PRA Geologist 1 24 24 0 MI Swaco Mud Engineer 2 12 24 0 Canrig Mud Loggers 2 24 48 0 Aimm Vac Trucks 4 12 48 - TOTAL COUNT 34 TOTAL MAN HOURS 506 • • FROM TO LENGTH JOINT DESCRIPTION G/L 95' 95' Welded 20" 133# X -56 Welded Conductor Pipe RT 115' 2956' _ BTCM 13 3/8" 68# J -55 (shoe @2956' , Float collar 02912') Intermediate FROM TO LENGTH JOINTS DESCRIPTION 7573.00 7563.00 10.00 Rat hole 7563.00 7561.00 2.00 Float shoe- Davis Lynch 501 Down jet Float shoe 7561.00 7478.00 83.03 2 9 5/8 40# L -80 BTC 7478.00 7475.90 2.10 9 5/8 Btc -Davis Lynch SB Float Collar 7475.90 3375.10 4100.80 102 9 5/8 40# L -80 BTC 3375.10 3372.80 2.30 9 5/8 L -80 -BTC Davis Lynch stage collar- type777 -hy 3372.80 22.09 3350.71 81 9 5/8 40# L -80 BTC 22.80 22.80 RKB to Load shoulder Liner FROM TO LENGTH JOINTS DESCRIPTION 1 9661.28 9659.00 2.28 - Rat hole 9659.00 9658.45 0.55 - 7" BHI H266674701 - Float Shoe 9658.45 9617.20 41.25 1 7" 26# L -80 Vam Top HC with BHI - H266624704 - Internal Float Collar 9617.20 9575.82 41.38 1 7" 26# L -80 Vam Top HC with BHI - H266564702 - Landing Collar 9575.82 7372.52 2203.30 54 7" 26# L -80 Vam Top HC 7372.52 7367.62 4.90 - 7" Handling Pup - 26# L -80 Vam Top HC, 6.192" ID 7367.62 7365.89 1.73 - 7" Vam Top HC - RN Casing Nipple, 5.88" No -Go ID 7365.89 7358.69 7.20 - 7" X 9.625" FlexLock Hanger, 6.19" ID, BHI - 29410WW16 7358.69 7343.24 15.45 - "HR" ZXPN Liner Top Packer, w/ 10.81" Polished Seal Bore Assembly, 6.188" ID, BHI - H2964260W10 CINGSA - DAILY DRILLING REPORT Date: 12/15/2011 Well Name U Storage 1 BHA #: DSM • - Steve Ratcliff Current Depth: 9661 Kenai, AK Tar 9661' Cell Phone: (907) 230 -9902 Depth: Ftg /24hrs. 0 • ••• Cannery Loop / Sterling C Contractor Nabors Alaska - Rig 105 E DSM Stephen Ratcliff Days Since Present Spud 19 Operation: RIH with 7" Tubing F/ 3280' Rig Phone: (907) 398 -3156 Cell Phone: (281) 914 -6250 DRILLING DATA BIT # SIZE MFG TYPE SER # JETS IN OUT FEET BIT GRADE TOTAL HOURS FnHR 3 81/2 HCC HCR503ZX 7114328 3- 13's,3 -14's 7573 9661 417 +- CT- c- x- , -ovT -, 6.9 61.00 CASING 1 SIZE 1 WEIGHT 1 GRADE 1 THREAD 1 DEPTH 1 CEMENT COMPANY 1 DATE 1 - Conductor: 20 1334 X -56 Welded 95' N/A July - Surface: 13 3/8 68 J -55 BTC -M 2956' SLB 29 -Nov - Intermediate 9 5/8 40 L -80 BTC -M 7563 SLB 5 -Dec - Liner 7 20 L -80 Vam Top 9659' SLB 12 -Dec - Tubing PUMP #1 PUMP #2 "MUD PROPERTIES: MUD ADDITIVES: 1 Daily (Cumulative PUMP MANF Gardner Denve PUMP MANF Gardner Denver WEIGHT 8.7 i • .-• PUMP TYPE PZ PUMP TYPE PZ - LINER SIZE 6 LINER SIZE 6 R600/R300 -• STOKE LNGTH 9 STOKE LNGTH 9 R200/R100 LOTORQ/776/STEEL LUBE 2332 GPM GPM - YP POTASSIUM CHLORIDE 34 1547 BTMS UP MIN - BTMS UP MIN API FLUID LOSS PAC 164 AVDC: AVDC: SAND - CITRIC ACID / SAFE CARB 778 DRILL STRING & HYDRAULICS PH 8.3 RESINEX 97 STRING WT. - • .00/.00 CAUSTIC SODA PICK UP RPM CHLORIDES 26800 SODIUM BICARBONATE/mrtabisulf 91 SLACK • 1 BARITE / NUT PLUG / G SEAL 687 MAX PULL HSP • 1 LIQUIDS (BBLS hauled) ;. ECD - PRESS DROP HOLE - (BBL) 645 SOLIDS (BBLS hauled by AIMM) 4282 DCOD 11 Daily ACTIVITY SUMMARY TIME SUMMARY Start Finish Hours Description iDetail Daily Cumulative 6:00 11:30 5.50 POH F/ 7343' and lay down drill pipe. RU /RD 133.00 11:30 12:00 0.50 L/D BOT Mill Tool, pull wear bushing. Drilling 121.75 12:00 13:30 1.50 Make dummy run with FMC landing joint and tubing hanger. Service/Reaair Rig 1.00 19.00 13:30 14:30 1.00 M/U 7" test joint and tools. Test plug seal leaking Surveys 0.00 14:30 15:00 0.50 Pull test plug, change out seal ring and re -set. Tripping 5.50 130.00 15:00 20:30 5.50 Test BOP's & related valves with 7" test joint. 250 psi low, Change BHA 0.50 7.50 2500 psi high. BOP TEST WAIVED WITNESS BY AOGCC Casing Crew 10.00 63.00 REP JEFF JONES. Cementing Crew 15.50 20:30 21:30 1.00 L/D test tool, R/D test equipment, pull test plug, blow down Logging 6.50 all surface equipment. NU /ND Test 7.00 30.00 I 21:30 22:00 0.50 Change out to long bales to run 7" completion string DST /Core 0.00 22:00 23:00 1.00 R/U Weatherford and handling equipment & tongs. Well Control 0.00 23:00 23:30 0.50 PJSM with BOT, Weatherford, & Nabors personnel WOC 0.00 23:30 0:00 0.50 Pick up seal assembly, inspect seals, & RIH. Safety Meetings 0.00 0:00 6:00 6.00 RIH with 7" tubing F/ surface to 3280' Drilling Cement 8.50 Circ /Other 58.25 24.00 See Remarks & Coments Below TOTAL 24.00 593.00 BOTTOM HOLE ASSEMBLY QTY 1 ITEM 1 CONN DOWN 1 CONN UP 1 VENDOR 1 O.D. 1 I.D. 1 GAUGE 1 NECK 1 LENGTH TOTAL LENGTH BHA TOTAL LENGTH o.00 REMARKS & COMMENTS DIESEL No accidents or sills. Diesel on Location day before _ 2,415 PJSM's for all obs. Diesel Used Last 24 1,185 Diesel Received 0 Witness waved by Jeff Jones AOGCC @ 14:30 hrs 12 -12 -11 TOTAL DIESEL 1,230 PERSONNEL ON LOCATION COMPANY NOTE COUNT HOURS TOTAL COMPANY NOTE COUNT HOURS TOTAL Nabors Rig Crew 24 12.5 300 Baker Liners 1 12 12 PRA DSM 2 24 48 Weatherford Tubing 4 12 48 PRA Safety /PM 2 1 2 0 PRA Geologist 1 24 24 0 MI Swaco Mud Engineer 2 12 24 0 Canrig Mud Loggers 2 24 48 0 Aimm Vac Trucks 4 12 48 - TOTAL COUNT 38 TOTAL MAN HOURS 554 0 • FROM TO LENGTH JOINT DESCRIPTION G/L 95' 95' Welded 20" 133# X -56 Welded Conductor Pipe RT 115' 2956' BTCM 13 3/8" 68# J -55 (shoe @2956' , Float collar @2912') Intermediate FROM TO LENGTH JOINTS DESCRIPTION 7573.00 7563.00 10.00 Rat hole 7563.00 7561.00 2.00 Float shoe- Davis Lynch 501 Down jet Float shoe 7561.00 7478.00 83.03 2 9 5/8 40# L -80 BTC 7478.00 7475.90 2.10 9 5/8 Btc -Davis Lynch SB Float Collar 7475.90 3375.10 4100.80 102 9 5/8 40# L -80 BTC 3375.10 3372.80 2.30 9 5/8 L -80 -BTC Davis Lynch stage collar- type777 -hy 3372.80 22.09 3350.71 81 9 5/8 40# L -80 BTC 22.80 22.80 RKB to Load shoulder I I Liner FROM TO LENGTH JOINTS DESCRIPTION 9661.28 9659.00 2.28 - Rat hole 9659.00 9658.45 0.55 - 7" BHI H266674701 - Float Shoe 9658.45 9617.20 41.25 1 7" 26# L -80 Vam Top HC with BHI - H266624704 - Internal Float Collar 9617.20 9575.82 41.38 1 7" 26# L -80 Vam Top HC with BHI - H266564702 - Landing Collar 9575.82 7372.52 2203.30 54 7" 26# L -80 Vam Top HC 7372.52 7367.62 4.90 - 7" Handling Pup - 26# L -80 Vam Top HC, 6.192" ID 7367.62 7365.89 1.73 - 7" Vam Top HC - RN Casing Nipple, 5.88" No -Go ID 7365.89 7358.69 7.20 - 7" X 9.625" FlexLock Hanger, 6.19" ID, BHI - 29410WW16 7358.69 7343.24 15.45 - "HR" ZXPN Liner Top Packer, w/ 10.81" Polished Seal Bore Assembly, 6.188" ID, BHI - H2964260W10 CINGSA - DAILY DRILLING REPORT Date: 12/16/2011 Well Name TIOU Storage 1 BHA #: ip DSM Days: Steve Ratciiff Current Depth: 9661 Location: Kenai, AK Tar 9661' Cell Phone: (907) 230 - 9902 Depth: Ftg /24hrs. 0 Field /Pool: Cannery Loop / Sterling C Corn actor: Nabors Alaska -Rig 105 E N � g h M ; Stephen Ratcliff Days Since 20 Present N/D BOP's and prep for rig move Rig Phone: (907) 398 -3156 Cell Phone: (281) 914 -6250 Spud Operation: DRILLING DATA BIT # _ SIZE MFG TYPE I SER # JETS IN OUT i FET BIT GRADE TOTALHOURS FT /HR #DIV /0! CASING SIZE WEIGHT GRADE THREAD DEPTH CEMENT COMPANY DATE - Conductor: 20 133# X -56 Welded 95' N/A July - Surface: 13 3/8 68 J -55 BTC -M 2956' SLB 29 -Nov - Intermediate _ 9 5/8 _ 40 L -80 BTC -M 7563 SLB 5 -Dec - Liner 7 20 L -80 Vam Top 9659' SLB 12 -Dec - Tubing _ 7 20 L -80 Vam Top 7343' - - - PUMP #1 PUMP #2 MUD PROPERTIES: MUD • e i Dail Cumulative PUMP MANF Gardner Denve PUMP MANF Gardner Denver WEIGHT 8.7 GEL (50 Ib bag) _ 420 PUMP TYPE PZ - PUMP TYPE PZ - FUNNEL VIS - S. ASH (50 lb bag) 0 LINER SIZE 6 LINER SIZE 6 R600 /R300 - _ KLA -GUARD 3 STOKE LNGTH 9 STOKE LNGTH 9 R200 /R100 - LOTORQ /776 /STEEL LUBE 2332 _ SPM - SPM - R6 /R3 - ASPHASOL SUPREME 269 _ GPS - GPS - PV - CONQOR 404 2 14 GPM - GPM - YP - POTASSIUM CHLORIDE _ 1547 PSI - PSI - GELS - FLOWZAN 90 BTMS UP MIN - BTMS UP MIN - API FLUID LOSS - PAC 164 TOT CIR MIN - TOT CIR MIN - CAKE APH /HT - CF -DESCO II 119 AVDP: AVDP: - SOLIDS - MYACIDE GA25 2 2 AVDC: AVDC: - OIL. /WATER - GEL -X 0 AVDC: AVDC: SAND - CITRIC ACID / SAFE CARE 778 DRILL STRING & HYDRAULICS PH 8.2 RESINEX 97 _ 1 STRING WT. _ - WOB - Pf /Mf .00 /.00 CAUSTIC SODA _ 35 I PICK UP 165 RPM - CHLORIDES 26000 SODIUM BICARBONATE /mrtabisulf 91 SLACK OFF 110 TFA - CA - BARITE / NUT PLUG / G SEAL 687 MAX PULL _ HSP - VOL. PIT - (BBL) - LIQUIDS (BBLS hauled) 380.2 4746.2 ECD _ - PRESS DROP - HOLE - (BBL) 645 SOLIDS (BBLS hauled by AIMM) 4282 DCOD 5 JET VEL - API SCREEN 4x200 Daily Mud Cum. 384.2 15676.2 ACTIVITY SUMMARY TIME SUMMARY Start Description Detail Daily Cumulative 6:00 12:00 6.00 RIH with 7" tubing F/ 3280' - 7161', P /U -165k, S/0 -110k RU /RD 7.50 140.50 _ 12:00 13:50 _ 1.50 M/U SSSV, P/U 5 Joints, Circulate down at 68spm, 221gpm, Drillin• 121.75 312psi, to 7325'. Sting in to seal assembly no -go for space Service /Re•air Ri• 19.00 out. Pull back to SSSV to Mill Control line. Surve s _ 0.00 13:50 17:30 4.00 L/D joints, M/U Stainless Steel Control Line for SSSV, Tri • • in • 130.00 - band to tubing, test line to 5000psi, and pick up pups Charlie BHA 7.50 for space out. Terminate control line, land hanger to verify. Casin• Crew 12.50 75.50 _ 17:30 19:00 1.50 Reverse circulate 200 gallons of diesel and Conqor A303 Cementin• Crew _ 15.50 _ Inhibitor and chase with 207 bbls of brine at 90spm, 460psi. Los •in• _ 6.50 19:00 20:00 1.00 Land hanger, P /U -165k, S/O -112k, R.I.L.D.S., R/D landing jt NU /ND Test 2.50 32.50 20:00 22:30 2.50 R/U Test equipment and test 7" tubing to 3000 psi for 30 DST /Core 0.00 minutes. Good test. Test annulus to 1500 psi for 30 xe- Well Control 0.00 minutes, test good. R/ tel5�st equipment. WOC 0.00 22:30 6:00 7.50 Secure well, drain stack, install BPV per FMC, prep cellar Safety Meetings 0.00 _ and wellhead, flush stack, mud pumps, and choke manifold, Drillin• Cement 8.50 1 Blow down lines, drain pits, nipple down stack. ' Circ /Other 1.50 59.75 24.00 See Remarks & Coments Below TOTAL 24.00 617.00 BOTTOM HOLE ASSEMBLY QTY 1 ITEM 1 CONN DOWN 1 CONN UP 1 VENDOR 1 O.D. 1 I.D. 1 GAUGE I NECK I LENGTH (TOTAL LENGTH A 4 ii6. titA;it BHA TOTAL LENGTH o.00 REMARKS & COMMENTS DIESEL No accidents or spills. Diesel on Location day before 1,230 PJSM's for all jobs. Diesel Used Last 24 1,769 Hold Spill Drill in cellar Diesel Received 3,000 TOTAL DIESEL 2,461 PERSONNEL ON LOCATION COMPANY L NOTE COUNT 1 HOURS TOTAL 1 COMPANY NOTE COUNT HOURS TOTAL Nabors Rig Crew 24 12.5 300 Baker Liners 1 24 24 PRA DSM 2 24 48 Weatherford Tubing 4 24 96 PRA Safety /PM 2 1 2 FMC Wellhead 1 24 24 PRA Geologist 1 24 24 0 MI Swaco Mud Engineer 2 12 24 0 Canrig Mud Loggers 2 24 48 0 Aimm [ Vac Trucks 4 12 48 - TOTAL COUNT 39 TOTAL MAN HOURS 638 . • FROM TO LENGTH JOINT DESCRIPTION G/L 95' 95' Welded 20" 133# X -56 Welded Conductor Pipe RT 115' 2956' _ BTCM 13 3/8" 68# J -55 (shoe (2956' , Float collar (2912') Intermediate FROM TO LENGTH JOINTS DESCRIPTION 7573.00 7563.00 10.00 Rat hole 7563.00 7561.00 2.00 Float shoe- Davis Lynch 501 Down jet Float shoe 7561.00 7478.00 83.03 2 9 5/8 40# L -80 BTC 7478.00 7475.90 2.10 9 5/8 Btc -Davis Lynch SB Float Collar 7475.90 3375.10 4100.80 102 9 5/8 40# L -80 BTC 3375.10 3372.80 2.30 9 5/8 L -80 -BTC Davis Lynch stage collar- type777 -hy 3372.80 22.09 3350.71 81 9 5/8 40# L -80 BTC 22.80 22.80 RKB to Load shoulder Liner FROM TO LENGTH JOINTS DESCRIPTION 9661.28 9659.00 2.28 - Rat hole 9659.00 9658.45 0.55 - 7" BHI H266674701 - Float Shoe 9658.45 9617.20 41.25 1 7" 26# L -80 Vam Top HC with BHI - H266624704 - Internal Float Collar 9617.20 9575.82 41.38 1 7" 26# L -80 Vam Top HC with BHI- H266564702 - Landing Collar 9575.82 7372.52 2203.30 54 7" 26# L -80 Vam Top HC 7372.52 7367.62 4.90 - 7" Handling Pup - 26# L -80 Vam Top HC, 6.192" ID 7367.62 7365.89 1.73 - 7" Vam Top HC - RN Casing Nipple, 5.88" No -Go ID 7365.89 7358.69 7.20 - 7" X 9.625" FlexLock Hanger, 6.19" ID, BHI - 29410WW16 7358.69 7343.24 15.45 - "HR" ZXPN Liner Top Packer, w/ 10.81" Polished Seal Bore Assembly, 6.188" ID, BHI - H2964260W10 Tubing FROM TO LENGTH JOINTS DESCRIPTION 7343.00 9.62 - 7 3/8" Bullet Locator Seal Assembly - BHI - H297551040 - 6.184" ID 7343.00 7331.65 11.35 - 7" 26# L -80 Vam Top HC - Casing Pup 7331.65 181.38 7150.27 175 7" 26# L -80 Vam Top HC 181.38 176.48 4.90 - 7" 26# L -80 Vam Top HC - Casing Pup 176.48 173.09 3.39 - 7" Vam Top - S.S.S.V. Nipple - 102026798, 5.963" ID - W/ 1/4" S.S. Control Line - X- Profile 173.09 168.19 4.90 - 7" 26# L -80 Vam Top HC - Casing Pup 168.19 88.01 80.18 2 7" 26# L -80 Vam Top HC 88.01 68.08 19.93 - 7" 26# L -80 Vam Top HC - Casing Pup 68.08 63.18 4.90 - 7" 26# L -80 Vam Top HC - Casing Pup 63.18 23.23 39.95 1 7" 26# L -80 Vam Top HC 23.23 21.09 2.14 - 7" 26# L -80 Vam Top HC Pup Joint 21.09 20.29 0.80 - 7" 26# L -80 Vam Top HC - FMC Tubing Hanger W/ SBMS Metal Seal 20.29 0.00 20.53 - RT to hanger CINGSA - DAILY DRILLING REPORT Date: 12/17/2011 Well Name U Storage 1 BHA #: DSM Days: Steve Ratcliff Current Depth: 9661 Location: Kenai, AK Tar 9661" Cell Phone: (907) 230 -9902 Depth: ig Ftg /24hrs. 0 Field /Pool: Cannery Loop / Sterling C Conductor: Nabors Alaska -Rig 105 E N 9 Stephen Ratcliff Days Since 21 Present Release Rig to CLU 5 @ 18:00 Rig Phone: (907) 398 -3156 Cell Phone: (281) 914 -6250 Spud Operation: DRILLING DATA BIT # 1 SIZE MFG i TYPE SER # I JETS i IN I I OUT I ( FEET BIT GRADE TOTAL HOURS #DIV/0! CASING 1 SIZE 1 WEIGHT 1 GRADE � THREAD 1 DEPTH CEMENT COMPANY 1 DATE 1 - Conductor: 20 133# X -56 Welded 95' N/A July - Surface: 13 3/8 68 J -55 BTC -M 2956' SLB 29 -Nov - Intermediate 9 5/8 40 L -80 BTC -M 7563 SLB 5 -Dec - Liner 7 20 L -80 Vam Top 9659' SLB 12 -Dec - Tubing 7 20 L -80 Vam Top 7343' - - - PUMP #1 PUMP #2 MUD PROPERTIES: (MUD ADDITIVES: Daily Cumulative PUMP MANF Gardner Denver PUMP MANF Gardner Denver WEIGHT - GEL (50 Ib bag) 420 PUMP TYPE PZ -9 PUMP TYPE PZ -9 FUNNEL VIS - S. ASH (50 lb bag) 0 LINER SIZE 6 LINER SIZE 6 R600 /R300 - KLA -GUARD 3 STOKE LNGTH 9 STOKE LNGTH 9 R200 /R100 - LOTORQ /776 /STEEL LUBE 2332 SPM - SPM - R6 /R3 - ASPHASOLSUPREME 269 GPS - GPS - PV - CONQOR 404 14 GPM GPM - YP - POTASSIUM CHLORIDE 1547 I PSI _ - PSI - GELS - FLOWZAN 90 BTMS UP MIN _ - BTMS UP MIN - API FLUID LOSS - PAC 164 TOT CIR MIN - TOT CIR MIN - CAKE APH /HT - CF -DESCO II 119 ' AVDP: AVDP: - SOLIDS - MYACIDE GA25 2 AVDC'. _ AVDC: - OIUWATER _ - GEL -X _ 0 AVDC: AVDC: SAND - CITRIC ACID / SAFE CARB 778 DRILL STRING & HYDRAULICS PH - RESINEX 97 STRING WT. - WOB - Pf /Mf - CAUSTIC SODA 35 PICK UP - RPM - CHLORIDES - SODIUM BICARBONATE /mrtabisulf 91 SLACK OFF - TFA - CA - BARITE / NUT PLUG / G SEAL 687 MAX PULL - HSP - VOL. PIT - (BBL) - LIQUIDS (BBLS hauled) 115 4861.2 ECD - PRESS DROP - HOLE - (BBL) - SOLIDS (BBLS hauled by AIMM) 4282 DCOD - JET VEL - API SCREEN - Daily Mud Cum. 115 15791.2 ACTIVITY SUMMARY 1 TIME SUMMARY Start 1 Finish 1 Hours I Description Detail 1 Daily 1 Cumulative 6:00 18:00 12.00 Nipple down BOP's, blow down mud lines, choke manifold, RU /RD 12.00 145.00 clean flow box, bleed off accumulator and LO/TO for rig Drilling 121.75 move, clean mud pits, flush pits with fresh water, N/D choke Service /Repair Rig _ 19.00 kill line, R/D flow risor, terminate SSSV control line, test Surveys 0.00 to 5000 psi, N/U Tubing head adapter and master valve. Tripping 130.00 Torque up master valve on adapter spool. Clean and clear Change BHA 7.50 cellar area. Casing Crew 63.00 - RIG RELEASED TO CLU 5 AT 18:00 HOURS - 12/16/11 Cementing Crew 15.50 Logging 6.50 NU /ND Test 30.00 DST /Core _ 0.00 _ Well Control 0.00 W OC _ 0.00 Safety Meetings 0.00 Drilling Cement 8.50 Circ /Other 58.25 12.00 See Remarks & Coments Below TOTAL 12.00 605.00 BOTTOM HOLE ASSEMBLY QTY 1 ITEM CONN DOWN CONN UP VENDOR O.D. 1 I.D. 1 GAUGE 1 NECK 1 LENGTH 'TOTAL LENGTH BHA TOTAL LENGTH 0.00 REMARKS & COMMENTS DIESEL No accidents or spills. Diesel on Location day before 3,461 PJSM's for all jobs. _ Diesel Used Last 24 _ 593 _ Diesel Received 0 RIG RELEASED TO CLU -5 AT 18:00 HOURS - 12/16/11 TOTAL DIESEL _ 2,868 PERSONNEL ON LOCATION COMPANY NOTE COUNT HOURS TOTAL _ COMPANY NOTE _ COUNT HOURS TOTAL Nabors Rig Crew 24 12.5 300 FMC Wellhead 1 12 12 PRA DSM 2 12 24 0 PRA Safety /PM 2 1 2 _ _ 0 PRA Geologist 1 12 12 0 MI Swaco Mud Engineer 1 _ 12 12 - 0 Canrig Mud Loggers 3 12 36 0 Aimm Vac Trucks 4 12 48 - TOTAL COUNT 34 TOTAL MAN HOURS 446 f • 9 FROM TO LENGTH JOINT DESCRIPTION G/L 95' 95' Welded 20" 133# X -56 Welded Conductor Pipe RT 115' 2956' BTCM _13 3/8" 68# J -55 (shoe @2956' , Float collar @2912') Intermediate FROM TO LENGTH JOINTS DESCRIPTION 7573.00 7563.00 10.00 - Rat hole 7563.00 7561.00 2.00 - Float shoe- Davis Lynch 501 Down jet Float shoe 7561.00 7478.00 83.03 2 9 5/8 40# L -80 BTC 7478.00 7475.90 2.10 - 9 5/8 Btc -Davis Lynch SB Float Collar 7475.90 3375.10 4100.80 102 9 5/8 40# L -80 BTC 3375.10 3372.80 2.30 - 9 5/8 L -80 -BTC Davis Lynch stage collar- type777 -hy 3372.80 22.09 3350.71 81 9 5/8 40# L -80 BTC 22.80 22.80 - RKB to Load shoulder Liner FROM TO LENGTH JOINTS DESCRIPTION 9661.28 9659.00 2.28 - Rat hole 9659.00 9658.45 0.55 - 7" BHI H266674701 - Float Shoe 9658.45 9617.20 41.25 1 7" 26# L -80 Vam Top HC with BHI - H266624704 - Internal Float Collar 9617.20 9616.65 0.55 BHI - H266564702 - Landing Collar 9616.65 9575.82 40.83 1 7" 26# L -80 Vam Top HC 9575.82 7372.52 2203.30 54 7" 26# L -80 Vam Top HC 7372.52 7367.62 4.90 - 7" Handling Pup - 26# L -80 Vam Top HC, 6.192" ID 7367.62 7365.89 1.73 - 7" Vam Top HC - RN Casing Nipple, 5.88" No -Go ID 7365.89 7358.69 7.20 - 7" X 9.625" FlexLock Hanger, 6.19" ID, BHI - 29410WW16 7358.69 7343.24 15.45 - "HR" ZXPN Liner Top Packer, w/ 10.81" Polished Seal Bore Assembly, 6.188" ID, BHI - H2964260W10 Tubing FROM TO LENGTH JOINTS DESCRIPTION 7343.00 9.62 - 7 3/8" Bullet Locator Seal Assembly - BHI - H297551040 - 6.184" ID 7343.00 7331.65 11.35 - 7" 26# L -80 Vam Top HC - Casing Pup 7331.65 181.38 7150.27 175 7" 26# L -80 Vam Top HC 181.38 176.48 4.90 - 7" 26# L -80 Vam Top HC - Casing Pup 176.48 173.09 3.39 - 7" Vam Top - S.S.S.V. Nipple - 102026798, 5.963" ID - W/ 1/4" S.S. Control Line - X- Profile 173.09 168.19 4.90 - 7" 26# L -80 Vam Top HC - Casing Pup 168.19 88.01 80.18 2 7" 26# L -80 Vam Top HC 88.01 68.08 19.93 - 7" 26# L -80 Vam Top HC - Casing Pup 68.08 63.18 4.90 - 7" 26# L -80 Vam Top HC - Casing Pup 63.18 23.23 39.95 1 7" 26# L -80 Vam Top HC 23.23 21.09 2.14 - 7" 26# L -80 Vam Top HC Pup Joint 21.09 20.29 0.80 - 7" 26# L -80 Vam Top HC - FMC Tubing Hanger W/ SBMS Metal Seal 20.29 0.00 20.53 - RT to hanger • • Schlumberger CLU- STORAGE #1: Cementing Recap Executive Summary: Surface Casing 2957' MD: The Surface Casing Cement job was accomplished on 11 -29 -2011, with the primary objective to observe cement returns to surface, and provide sufficient shoe strength and isolation to drill ahead. Planning called for 75% Open -hole excess, based on the volume to surface on previous wells The hole was circulated with casing on bottom for 2 bottoms up. 35 bbls of spacer was pumped ahead of the cement. With approximately 231 bbls of Lead slurry pumped, spacer was seen at surface. Lead was continued for 35 bbls, and then shut down with 266 bbls total of 12.0 ppg lead slurry pumped. // The volume indicates a virtually gauge 16" hole. _ e r - fv" 63 bbls of 15.4 ppg Tail slurry were pumped. Approxoimately 132 bbls of lead was returned to surface. The computer utilized for recording the parameters of the cement job went down in the first few minutes of cement mixing. The failure was a result of overheating the laptop that was sitting inside of the pump shack, on top of the engine cover. (This was a different failure than on the previous well, in which an acquisition board fried.) Recording of the job was done by hand, and transferred to an excel file. The cement job utilized an inner -string with a stab -in col ar; all of the float equipment functioned as expected. Drill out was accomplished without incident and the expected isolation was confirmed with a 15.0 ppg EMW FIT test. Costs were in -line with preliminary estimates. Intermediate Casing 7563' MD: The Intermediate Cement job was accomplished on 12 -5 -2011. The primary objective was to ensure zonal isolation from the shoe to 7037' with F1exSTONE slurry, to ensure a competent seal above the storage zone. The secondary objective was lead cement for the length of the casing, for isolation of minor gas -sands in the well, as well as protection of the casing for the life of the well. The cement job was done in two stages, with a DV tool at approximately 3374' MD. Pre job planning called for 15% open -hole excess. During the casing run the rig circulated bottoms up at the surface shoe. Full returns were established after landing out, and 1 bottoms up was circulated prior to commencing the cement job. 40 bbls of MUDPUSH II spacer, pumped with the rig pumps. \ (230 bbls of 12.0 ppg Lead slurry were pumped. 46 bbls of 14.0 ppg F1exSTONE Tail slurry was pumped. Displacement rate was slowed to 3.75 BPM, due to apparent seepage losses occuring. • ` Schlumberger The plug was bumped as anticipated, and the stage collar opened successfully. An anullar volume from the stage collar to surface was pumped. There was approximately 80 bbls of contaminated mud/spacer /cement returned to surface while circulating at the DV tool. -There appeared to be some channeling occuring, reports of cement at surface during displacement; a density check did not confirm this, and it is doubtful that cement was to surface at that point. But the 80 bbls circulated after opening the DV tool does indicate significant channeling. The second stage was pumped using 40 bbls of MUDPUSH II spacer, and 201 bbls of S 12.0_p_pgixacl slurry. The closing plug was dropped and the stage collar successfully closed. Mud contaminated with spacer and cement was reported at surface. Drill out was accomplished without incident, and a Leak - Off -Test performed indicating a 14.9 ppg EMW at leak -off. A bond -log was run after the next hole interval had been drilled. Results were acceptable, I/ though it does appear that channeling occurred, and isoloation was not as apparent as it was in the previous wells. Costs were in -line with preliminary estimates. Production Liner 7358' — 9659' MID: The Liner was run and set, circulation was established with full returns. Bottoms -Up was circulated while the liner was reciprocated. The Production Liner Cement job was accomplished on 12 -12 -2011. The primary objective was zonal isolation for the depleted gas- storage zone. Planned excess was 10 %, plus 200' of slurry above the liner top. 32 bbls of MUDPUSH II spacer 74 bbls of F1exSTONE slurry at 14.0 ppg were pumped. The DP wiper dart was dropped, displacement was as expected, the wiper dart sheared, and the plug was bumped. The liner hanger and packer were set. Circulated the long way on top of the liner, cement returns were seen on bottoms up. Liner and casing were pressure tested to 2500 psi. ri 3 en, Costs were in -line with preliminary estimates. CLU — STORAGE #2 Cementing Cost 14% under pre -drill estimate • • Schlumberger CLU- STORAGE #2: Cementing Lessons - Learned for future wells on the pad The laptop computer used for recording is typically held in the Engineers pickup. Moving it into the pump house subjected it to excessive heat and vibration from the motor covers that it was setting on. The engineer was trying to secure a better vantage point to monitor the job, and communicate with the crew. He did not anticipate the risk. More circulation to condition the mud for the Intermediate casing job could serve to alleviate some of the channeling that is occuring. i • Sehiumberger Laboratory Cement Test Report Nabors 105 CLU Storage 1 Surface Lead Field Blend 1 Fluid No : PAK 11sfc4025 Client : CINGSA Location 1 Rig : Nabors 105 I -■ Date : Nov- 26 -2011 Well Name : CLU Storage 1 Field : Cannery Loop M. Schinnell Job Type 13 318• Surface Depth 2940.0 ft TVD 2623.0 ft BUST 90 degF BHCT 80 degF BHP 1255 psi Starting Temp. 80 degF Time to Temp. 00:10 hymn Heating Rate 0.00 degF /min Starting Pressixe 500 psi Time to Pressure 00:10 hymn Schedule ( ) Composition Slurry Density 12.00 Ibigal Yield 2.45 ft3/sk Mix Fluid 14.523 pal /sk said Vol. Fraction 20.743 % Porosity 79.257 % Skxry type Extended Code Concentration Sack Reference Component Blend Density Lot Number D929 94.00 lb of CEMENT Blend 19727 lb/R3 Fresh water 14.373 gal/sk Base Fluid D046 0200 %BWOC Mtifoam TU1A0243A0 0020 3.000 %BWOC Extender 44210303A D079 2.000 %BWOC Extender 12097CM1 Gel 0110 0.150 galIsk Retarder TU1J0171A0 Rheology Tem • - rature 80 • - • F 80 • • F (rpm) Up Down Average Up Down Average (deg) (deg) (deg) (deg) (deg) (deg) 300 34.0 34.0 34.0 70.0 70.0 70.0 200 30.0 31.0 30.6 63.0 69.0 61.0 100 29.0 27.0 28.0 64.0 62.0 63.0 60 29.0 26.0 27.6 62.0 61.0 61.6 30 29.0 26.0 27.0 60.0 68.0 69.0 6 29.0 23.4 26.2 34.0 38.8 36.4 3 _ 23.1 22.7 22.9 _ 19.4 21.8 20.6 10 sec Gel 21.3 deg - 22.73 bf/100ft2 21.5 deg - 22.95 lbf/100ft2 10 min Gel I 35.2 deg - 37.57 trf/100ft2 I 19.7 deg - 21.03 lbf /100ft2 I . computed I Viscosity: 7.822 cP Yield Point: 25.88 Rrf/100ft2 1 Viscosity: 13.865 cP Yield Point: 56.62 bf/100ft2 Thickenin ! Time Consistency Time POD : 04:40 hr:mn 30 Bc 04:55 hr:mn 70 Bc 05:63 hr:mn 100 Bc 06:18 hr:mn Free Fluid 2.0 nt./250mL in 2 his At 80 degF and 45 deg led Simon: None Water Analysis CINGSA Wet Water Nov-25 -2011 Chioride Calcium Magriesi<sn 67 mg/L 19 mg/t. 14 mg/I Page 1 Instrument: 7222.460tl SchIumberger Sampling Period: 5 seconds Prudhoe Bay Well Services Laboratory Telephone: +1 907 659 6155 Facsimile: +1 907 659 9221 250 12000 100— 1 1 i 1 1 I - 1 1 ! 1 1 1 1 I 1 225 10800 90 ._ -1 - t _ 1 1 1 i _ 1 1 4 1 I 4 1 1 96007 BO_ _. _. _ _ - _ _ - _ _ .4 , -1 4. _4 4- - .y -a - 1 ■ 1 1 1 1 1 1 I - 1 I 1 ■ 1 175 8400 7Q- r { 1 4. • - 1 r 1 r _ 1 1 1 t r - - 1 1 1 1 1 - I 1 1 I 1 W 1 ,r 7200- 2 60- -_ t - --- - - - - - r -i r -+ -i - i 1 1 1 1 ( 1 f 1 125 6000 50 ___________ �_� , 1 T E. A 1 r 1 i C i i 1 i 1 I- 100 a 48007 U �_.,_- ____- ___- 1___- _...____ __ _____________ t____ ----- -- _ -1 ----- - _ - ___ - - ___-- _ T- _- _-- __ ---- � 1 I 1 1 1 j 75 [ 3600 If 4 i.-----40. 1 *I1II1I I IIIIIIIIIIIZ1IIIII 2400 20 _� j _! r 4 i 1 25 1200 10 ; 1 i 1 1 0 0 0 i 1 1 1 1 1 1. 1 0:00 1:00 2:00 3.00 Time (HH MM) 4:00 5:00 6:00 7:00 • Location: CLU Storage 1 30 Bc: 4:56:05 File Name: pakl1sfc4025- 1- celll.tst Customer. CINGSA 50 Bc: 5:35:05 Supervisor. Cahill 70 Bc: 5:55:25 Test Started: 11/26/2011 10:50:43 AM Density: 12 Ibnfgal 100 Bc: 6:1815 Test Stopped: 11/26/2011 5:09:03 PM System: 0929 +.2046 +3.00020 +2.00019 +.15D110 BHCT: 80 degF Printed: 11/26/2011 9:41:50 PM BHST: 90 degF Job Type: Surface lead Rig Name: {Info :Rig ID} Page 1 Instrument: Twin Right Current Compressive Strength: 444 psi Schlumberger Sampling Period: 30 seconds Final Compressive Strength: 444 psi at 48 :08:30 Prudhoe Bay Well Services Laboratory Compressive strength type A (less than 14 lb/gal) Telephone: +1 907 659 6155 Facsimile: +1 907 659 9221 20 111 500- 1 1 i t _... 1 1 1 t , 1 , a t I 187 .. 450- - - M t I t 16— 81 4045007:12- '- 1 w 1 I 1 - - t 1 i I 1 1 1 I 14- 7r -i + -4 1- -t 441 • r - n 1 I 1 t 1 ■ 12- - 61 300 - I i r c - - sn - __1____,.____1 -. ...__..___J _1 t_ J L I- J 0 10— ro ,1 y 250-___ ___ __ _______ 1 r I 1 4 I 1 1 1 N 1 1 1 1 N i i 1 Z 8- f 41 is 200--- _---- . i_ __ __ _ ___ __ __ __ __ -t T -t- 1 ' _ 1° - E 1 , 1 i I... - U 1 I r I 6— 31 150— _____._________ ■ i i r I i I 1 - 1 1 1 4— r 100— ________ ____., ,. -4 - .4 4- ________- 4- ________ +_ _ - ___I__ -__ __.1 _ 1 / I i I I I I 1 I 1 I 1 _ - -Y 1 f i t I t 1 I I I _ 1 i I 1 1 1 r 0 0 0 . 0 5 10 15 20 25 30 35 40 45 50 Time (HH) • Location: CW Storage 1 50 psi: 5:19 :00 File Name: pakl lsfc4025- UCA4.tst Customer. CINGSA 500 psi: N/A Supervisor. Peter Cahill 1000 psi: N/A Test Started: 11/27/2011 9:23:00 AM Density 12lbm/gal 2000 psi: N/A Test Stopped: 11/29/2011 9:32:13 AM System: D929 +.2046 +3.00020+2.0079 +.150110 BHCT: 80 degF 12 hr: 191 psi Printed: 11/29/2011 9:44:55 AM BHST: 90 degF 24 hr. 344 psi Job Type: Surface Tail Page 1 Rig Name: (Info:Rig Name} • • Schiumberger Laboratory Cement Test Report Nabors 105 CLU Storage 1 Surface Tail Field Blend I Fluid No : PAK 11sfc4026 Client : CINGSA Location I Rig : Nabors 105 I es Date : Nov -27 -2011 Well Name : CLU Storage 1 Field : Cannery Loop M. Schinnell Job Type 133/8" Surface Depth 2940.0 ft TVD 2623.0 ft BHST 90 degF BHCT 80 degF BHP 1255 psi Starting Temp. 80 degF Time to Temp. 00:10 hrmn Heater Rate 0.00 degF /mm Starting Pressure 500 psi Time to Pressure 00:10 hrmn Schedule ( ) Composition I Slurry Density 15.40 lb/gal Yield 1.22 ft3/sk Mix Fluid 5.509 gaUsk Said Vol. Fraction 39.707 % Porosity 60.293 % Slurry type Conventional Code Concentration Sack Reference Component Blend Density Lot Number 0929 94.00 lb of CEMENT Blend 197.27 Ib/ft3 Fresh water 5.439 gal /sk Base Rid 0046 0 .200 %BWOC Antifoarn TU1A0243A0 0065 0.400 %BWOC Dispersant Y12212SCL D167 0 .200 %BWOC Fluid loss GBG0018466 D145A 0.060 gal/sk Dispersard 320124 0110 0.020 gal /sk Retarder TU1J0171A0 Rheology T . • afore 80 • - • F 80 • F (rpm) Up Down Average Up Down Average (deg) (deg) (deg) (deg) (deg) (deg) 300 65.0 55.0 56.0 87.0 87.0 87.0 200 41.0 43.0 42.0 81.0 83.0 82.0 100 23.0 27.0 25.0 62.0 65.0 63.5 60 17.0 20.0 18.5 55.0 68.0 66.6 30 12.0 14.0 13.0 50.0 53.0 61.5 6 7.7 9.6 8.6 33.5 49.6 41.6 3 6.2 9.4 7.3 27.6 49.2 38.4 f 10 sec Gel I 14.7 deg -15.69 bf/10082 51.5 deg - 54.97 lbf/100ft2 1 1 10 min Gel 76.8 deg - 81.97 lbf/100n2 66.3 deg - 70.76 x /100112 I Rheo. computed I Viscosity: 47.223 cP Yield Point: 8.95 tif/10tf12 I Viscosity : 43.989 cP Yield Point: 47.92 bf/100ft2 l Thickenin, Time Consistency Time 30 Bc 01:50 hr :mn 70 Bc 02:35 hrmn 100 Bc 02:46 hrmn Free Fluid 0.o mt.n50mL to 2 hrs At 80 degF turd 45 deg ind Sedimentation : None Fluid Loss 1 API Fluid toss 245 n2. 50ntin5nunat80degF and 1000psi Water Analysis CINGSA Well Water Nov -25 -2011 Chloride Calcium Magnesium 67 mgfL 19 mgll 14 mg/t. Page 1 Instrument 72224601 Schlumberger Sampling Period: 5 seconds Prudhoe Bay Well Services Laboratory Telephone: +1 907 659 6155 Facsimile: +1 907 659 9221 250 12000 100 _ • 1 1 1 1 1 1 I 1 t 1 1 , 1 1 1 225 10800 90— _ 1._ I - 1 t 1 I i 1 1 200 9600 80— -4 41. -I, 1 1 1 1 - 1 I 1 175 8400 70— -+ 4- +- -; -I • i 1 i i i 1 ... i i 1 h-- 1 1 e. ,. 7200 li 60 -i 1- 1- -1 & m : l' 1 , , - : a 0 I e 125 '5 6000 ,i 50 -, T -1 .-1 - _ 1 i .12 SI - g C 0 I _ I 1 ■ o 4800 0 40 r r i i - i . I 25 1 1 1 10-7V-* 1 41" ; . - i III. 0 0 0 ,11,111111111Itif IIIIIII 0100 030 100 1:30 2:00 2:30 3:00 Time (HH:MM) • Location: CLU Storage 1 30 Bc: 1:54:00 File Name: pak11sfc4026-5-cellttst Customer CINGSA 50 Bc: 2:17:10 Supervisor Cahill 70 Bc: 2:35:35 Test Started: 11/27/2011 2:49:59 PM Density: 15.4 Ibm/gal 100 Bc: 2:46:20 Test Stopped: 11/27/2011 5:36:20 PM System: D929+.2046+.4065+.20167+.050145A+.020110 BHCT: 80 degF Printed: 11/27/2011 6:38:32 PM BHST: 90 degF Job Type: SurfaceTail Rig Name: {Info:Rig ID} Page 1 Instrument Twin Left Current Compressive Strength: 2459 psi Schlumberger Sampling Period: 30 seconds Final Compressive Strength: 2459 psi at 24:03:33 Prudhoe Bay Well Services Laboratory Compressive strength type B (more than 14 lb/gal) Telephone: +1 907 659 6155 Facsimile: +1 907 659 9221 20 1 1 2500 ! 1 _ - 1 187: 135 2250 Y - 1 - - -1 1 1 16 1 1 2000— _ i f 1 • 14— 105 1750 + - -1 - 4 - - - - _ -, -1 12— - *1 f 1500 _ - - -___ __ d 10— ti 75 1250 3_______ -__ a 2 t- b -i 1 1 1 - th 8— . t pi 1o00— _ ; _ - 1 -, W r : 0 _ i 6— 45 750 i 1 - -- ! _ _ 1 o 4— 31 500— __________________, ____+ -4 1 t 2— 1 250- - 1 1 r 1 , 1 1 0 0 0 1 i 1 1 1 1 , 0:00 5:00 10 :00 15 :00 20 :00 25 :00 Time (HH:MM) II Location: CLU Storage 1 50 psi: 5:36:30 File Name: pakllsfc4026- UCA3.tst Customer. CINGSA 500 psi: 8:24:30 Supervisor. Peter Cahill 1000 psi: 10:35:30 Test Started: 11/28/2011 7:04:06 PM Density 15.41bm/gal 2000 psi: 17:58:00 Test Stopped: 11/29/2011 7:08:04 PM System: 0929+. 2046 +.4065+.20167 +.050145A +.02D 110 BHCT: 80 degF 12 hr: 1251 psi Printed: 11/29/2011 7:13:46 PM BHST: 90 degF 24 hr. 2449 psi Job Type: Surface Tail Page 1 Rig Name: (Info:Rig Name) 41) • Schiumberger Laboratory Cement Test Report Nabors 105 CLU Storage 1 Intermediate Lead Field Blend shmtues 1 Fluid Date No Dec-04-2011 W Client : ell Name : CLU Storage 1 Field /Rig : Nabors nnery Loop I I Daniel Himel Job Type 95/8" Intermediate Depth 7644.0 ft TVD 4937.0 ft BHST 103 degF BHCT 85 degF BHP 2362 psi Starting Temp. 80 degF Time to Temp. 01:50 hrmxn Heater Rate 0.05 degF /min Starling Pressure 500 psi Time to Pressure _ _ _man Schedule ( ) Composition -- I Slurry Density 12.00 lb/gal Yield (245 ft3tak Mix Fluid 14.523 gaUsk Solid Vol. Fraction 20.7 % Porosity \79.3 % Slurry type Conventional Code Concentration Sack Reference Component Blend Density Lot Number D929 94 lb of CEMENT Blend 197.27 Ib/ft3 Fresh water 14.373 gaUsk Base Fluid 0046 0.200 %BWOC Antifoa m TU1A0243A0 0020 3.000 %BWOC Extender 44210303A D079 2.000 %BWOC Extender 12097CM1 Gel 0110 0.150 gaUsk Retarder TU1J0171A0 Rheology Tam • ature 80 de . F 85 • - • F (rpm) Up Down Average Up Down Average (deg) (deg) (deg) (deg) (deg) (deg) 300 50.0 50.0 50.0 68.0 68.0 68.0 200 48.0 47.0 47.6 67.0 64.0 65.5 100 46.0 43.0 44.6 60.0 61.0 60.5 60 46.0 42.0 44.0 63.0 58.0 56.6 30 45.0 41.0 43.0 47.0 67.0 62.0 _. 6 38.9 33.2 36.0 36.0 34.7 35.3 3 25.3 22.2 23.7 25.1 28.1 26.6 1 10 sec Gel 22 dog -23.27 /100ft2 26 deg - 27.32 lbf/1001t2 10 n:41 Gel I 43 deg - 45.68 lbf/10002 I 54 deg - 57.53 lbf /10082 I I Rheo. I Viscosity: 7.551 cP Yield Point: 42.478N/100ft2 I Viscosity: 15442 cP Yield Pow: 54.10 bf /100ft2 ( Thickenin, Time Consistency Time POD : 03:07 hr :mn 30 Bc 03:57 hrmn 70 Bc 06:00 hr:mn 100 Bc 06:27 hr:mn Free Fluid Trace m4125thriL in 2 hrs At 80 degF and 45 deg and Sedimentation : None Water Analysis Chloride Calcium f4agnesiurn I j 67.00 magi 19.00 mgfl 14.00 mgIl Page 1 Instrument: 824013 Schlumberger Sampling Penod: 5 seconds Prudhoe Bay Well Services Laboratory Telephone: +1 907 659 6155 Facsimile: +1 907 659 9221 250 12000 • 100 v 225 10800 90- rii 80- _ 175 8400 70— - 41 • = 7200 m 150 60 t r ; - _ N _ E d >. V 125 7 6000 m 50— C1 • N G N E ° � ' c . 1 1 2 1 00 4800 V 40_ _ _ _- -. _ _ _ 1 _ - O 71 3600 30 - ".-- -- . v 2400 20- { 01 0 0 : ' , , I 0:00 1:00 2:00 3:00 4:00 5:00 6:00 Time (HH:MM) • Location: CINGSA Storage 1 30 Bc: 3:57:50 File Name: pak11int4022- 1- ce113.tst Customer: CINGSA 50 Bc: 4:42:15 Supervisor. {Info:Supervisor} 70 Bc: 5:00:50 Test Started: 12/3/2011 6:37:17 PM Density 12 IbnVgal 100 Bc: 5:27:35 Test Stopped: 12/4/2011 12:05:15 AM System: Typel +.2 %046 +3 %020 +2%079 +.15gps01100 BHCT: 85 degF Printed: 12/4/2011 2:15:30 PM BHST: 103 degF Job Type: 9 5/8 Intermediate Rig Name: Nabors 105 Page 1 Instrument: Twin Right Current Compressive Strength: 501 psi Sc h 1 u m b e rg e r Sampling Period: 30 seconds Final Compressive Strength: 501 psi at 47:50:30 Prudhoe Bay Well Services Laboratory Compressive strength type A (less than 14 Ibfgal) Telephone: +1 907 659 6155 Facsimile: +1 907 659 9221 1 1 6QQ I 16 _ i • 1 11 500 - -- --- -- -- -- .------ --- -- -- ---- ?- -- -. -_.__ t 14 12 ;1 w 40O -- __._____.____._____. -- __- __..._...____ _.______.__.__ __....____ 4- U • ..ti 10 e s 1 a, 300 -- ____.__.____.- __.___. E B i- a ii 4 1 100. 2 _ 1 0 0 0 i I 1 Q 15 45 60 • • Time e ( (NH) Location: CLU Storage 1 50 psi: 4:46:30 File Name: pakl lint4022- 1- UCA4.tst Customer: CINGSA 500 psi: 47:17:00 Supervisor. Peter Cahill 1000 psi: N/A Test Started: 12/4/2011 5:09:42 PM Density 12.0 Ibm/gal 2000 psi: N/A Test Stopped: 12/6/2011 4:58:18 PM System: D929+.2046+3%020+2%079+.150110 BHCT: 85 degF 12 hr: 250 psi Printed: 12/6/2011 5:00:31 PM BHST: 103 degF 24 hr: 402 psi Job Type: 9 5/8' Intermediate Page 1 Rig Name: Nabors 105 i • Schiumberger Laboratory Cement Test Report Nabors 105 CLU Storage 1 Intermediate Tail Field Blend External si. es I Fluid No : PAK 11int4023 Client : CINGSA Location I Rig : Nabors 105 I Date : Dec -02 -2011 Well Name : CLU Storage 1 Field : Cannery Loop Daniel Himel Job Type 95/8" intermediate Depth 7644.0 ft TVD 4937.0 ft BHST 103 degF BHCT 85 degF BHP 2362 psi Starting Temp. 90 degF Time to Temp. 02:15 hymn Heating Rate -0.04 degF /min Stalling Pressure 500 psi Time to Pressure 02:1 .mn Schedule ( ) Composition I Slurry Density 14.00 Ib/gai Yield 1.29 Mix Fluid 4.098 gaUsk Solid VoL Fraction 57.6 % Porosity 4 Slimy type FIexSTONE Code Concentration Sack Reference Component Blend Density Lot Number CLU Flex 100 lb of BLEND Blend 136.78 lbfft3 Fresh water 4.098 gal /sk Base Fkud 0046 0200 %BWOB Antifoarn 2011812 D202 0.500 %BWOB Dispersant 116529 D400 0.500 %BWOB Gas Migratio 091911 -82 Rheology Tem • - ature 80 • - • F 85 • - • F (rpm) Up Down Average Up Down Average (deg) (deg) (deg) (deg) (deg) (deg) 300 124.0 124.0 124.0 140.0 140.0 140.0 200 94.0 93.0 93.5 103.0 106.0 104.6 100 64.0 59.0 61.5 66.0 66.0 65.5 60 44.0 33.0 38.5 52.0 50.0 51.0 30 28.0 22.0 25.0 29.0 25.0 27.0 6 14.9 10.5 12.7 16.1 11.4 13.8 3 11.6 8.8 10.2 13.8 9.4 _ 11.6 10 sec Gel 12 deg -13.90 1:4/10082 11 deg -13.06 lbf/100 t2 10 non Gel I 31 deg - 36.22 bft100ft2 I 18 deg - 21.14 bf/1 001t2 I Rheo. wed I Viscosity : 249.872 cP Yield Point :1720 bt/100ft2 I Viscosity : 279.570 cP Yield Point : 20.14 1)1/100ft2 Thickenin ! Time Consistency Time Remark : Thickening time includes batch time 30 Bc 04:17 hr:mn 70 Bc 05:14 hr:mn 100 Bc 05:42 hr:mn Balch Mix Tine : 01:00 hymn at 90 deal' Free Fluid 0.o mt125Oml. in 2 hrs At 80 degF and 45 deg ind Sedinentahon : None Fluid Loss I API Fk Loss 10 mL 5 mi. in 30 m in at 85 degF and 1000 psi Water Analysis Chloride Calcium Magnesium 67.00 mglt 19.00 mgA 14.00 mgq Page l 1 1 '� Instrument: 824014 Schlumberger Sampling Period: 5 seconds Prudhoe Bay Well Services Laboratory Telephone: +1 907 659 6155 Facsimile: +1 907 659 9221 2 1 12000 100 _ t __ _ ry ____� T : 1 1 1 1 225 10800 90 T - I i r T 1 1 + L 1 , 1 1 175 8400 70 - - - - - - • - t 1 - t 1 ir 1 ' y 7200 a p 60 r r - - - U Ea_ 125 = 6000• m 50________________ T ______ , 1 G N i til) VI d C 1 ____ _________1 __________ _____ __ _ t,___ __ 1______ -I 100 ° ' 4800- c ° 40- , 75 3600 Q 1 30— - ._______w_____�_ ___ ________� ..._____ -._w_ +____ __. _, I i 1 2400 20- ____ 1 ■ ■ i t 1 25 1200 10- ___________ 1 ___ 1 1 1 1 0 0 0 I 1 1 1 1 1 1 0:00 1:00 2:00 3 :00 4:00 5:00 6:00 • Time (HH:MM) Location: CLU Storage 1 30 8c: 4:22:40 File Name: pakl lint4023- 2- cell4.tst Customer. CINGSA 50 Bc: 4:56:40 Supervisor: Cahill 70 Be: 5:14:30 Test Started: 12/212011 8:44:00 AM Density. 14.0Ibmtgal 100 Bc: 5:42:35 Test Stopped: 12/2/2011 2:22:44 PM System: FIexSTONE +.2%046 +.5 %0202 +.5 %0400 BHCT: 85 degF Printed: 12/2/2011 4:52:50 PM BLAST: 103 degF Job Type: 9 5/8" Intermediate Tail Rig Name: Nabors 105 Page 1 Instrument: PAK SGSA Current Compressive Strength: 1632 psi Schlumberger Sampling Period: 30 seconds Final Compressive Strength: 1632 psi at 42:24:00 Prudhoe Bay Well Services Laboratory Compressive strength type B (more than 14 lb/gal) Telephone: +1 907 659 6155 Facsimile: +1 907 659 9221 120 16- 1800 - _ _ , _ - - , • 14 1600 ' 100 _ - 1400— y 12 _ 80 .6 _ �, 1200 - • S _ - ' E o - m 1000-- _. _ ■ .- °° 60 m 8 � _ 2 - J 41 1- : 0 6007 . - - 4 _ 4007 t 17 - 2 200 _ ________...._ i_.__ _._._._____- .._.._._._.__ -__ -_1 — _m_______ ____________ 0 0 0 0 1 5 30 45 60 Time (HH) Location: CLU Storage 1 50 psi: 5:05:00 File Name: pakllint4023- SGSA.tst Customer: CINGSA 500 psi: 8:50 :30 Supervisor. Peter Cahill 1000 psi: 15:39:30 Test Started: 12/2/2011 9:18:10 PM Density 14.0Ibm /gal 2000 psi: N/A Test Stopped: 12/4/2011 3:43:33 PM System: FIexSTONE +.2 %D46 +.5 %D202 +.5 %0400 BHCT: 85 degF 12 hr 796 psi Printed: 12/4/2011 4:02:01 PM BHST: 103 degF 24 hr 1327 psi Job Type: 9 5/W Intermediate Tail Page 1 Rig Name: Nabors 105 Static Gel Stregnth (100lbf /100ft2): 4:10:30 Static Gel Strength (500lbf/100ft2): 4:19:00 ii, • Schlumberger Laboratory Cement Test Report Nabors 105 CLU Storage 1 Tin Liner Field Blend Signatures I Dated No : Dec-06-2011 Well Name : CLU Storage 1 Field / : Cannery Loop I I Daniel Himel I Job Type 7" Production Depth 9059.0 ft TVD 5161.0 ft BHST 106 degF BHCT 95 degF BHP 2415 psi Starting Temp. 90 degF Time to Temp. 01 :45 hymn Heating Rate 0.05 degF /mU Starting Pressure 500 psi Time to Presstre 01 :45 hrmn Schedule ( ) Composition I Slurry Density 14.00 lb/gal Yield 1.29 ft3/sk Mix Fluid 4.098 gaUsk I Solid Vol. Fraction 57.6 % Porosity 42.4 % Shary type FIexSTONE Code Concentration Sack Reference Component Blend Density Lot Number CLU Flex 100 lb of BLEND Blend 136.78 lb/ft3 Fresh water 4.098 gal /sk Base Fl 0046 0.200 %BWOB Antifoam 2011812 I D202 0.600 %BWOB Dispersant 116529 D400 0.500 %BWOB Gas fagratio 091911 -82 Rheology Tem . - is 80 . - . F 95 . - . F (rpm) Up Down Average Up Down Average (deg) (deg) (deg) (deg) (deg) (deg) 300 128.0 128.0 128.0 95.0 95.0 95.0 200 90.0 90.0 90.0 66.0 64.0 65.0 100 65.0 60.0 62.6 34.0 32.0 33.0 60 41.0 34.0 37.6 26.0 22.0 24.0 30 29.0 23.0 26.0 19.0 16.0 17.0 6 15.3 10.6 12.9 9.8 7.3 8.6 3 _ 11.5 8.9 10.2 8.5 6.7 7.6 1 10 sec Gel 11 deg -12.95 b1/10082 9 deg -10.45 bf/100ft2 10 mm Gel I 26 deg - 30.64 bf1100ft2 I 20 deg - 2328 It31 /10082 _ 1 Rtieo computed I Viscosity: 252.294 cP Yield Point: 16 -70 bf/100ft2 I Viscosity: 196.372 cP Yield Point: 6.67 bf /100tt2 Thickenint Time Free Fluid Consistency Time 0.0 n1J250mL kn 2 hrs Remark : Thickening time includes batch time At 80 degF and 45 deg ind 30 Be 03:09 hr :mn Sedimenttatieon : None 70 Be 04 :32 hr:mn 100 Be 04:51 hr:mn Fluid Loss Batch Mix Tune : 01:00 at 90 degF I API Fluid Loss 8 mL hr:mn 4 rnl- in 30 min at 95 degF and 1000 psi UCA Compressi Stren t h 10:04 to nm 500 psi 12.00 tnr:mn 657 pal 24:00 trmn 1183 pal Water Analysis Chloride Calcium Magnesirrn 67.00 mg/I 19.00 mg/I 14.00 mgI Page 1 Instrument. 824004 Schlumberger Sampling Period: 5 seconds Prudhoe Bay Well Services Laboratory Telephone: +1 907 659 6155 1 Facsimile: +1 907 659 9221 I 2 I 12000 t i 100 - -- r - 1 I - 4 4 4 1 t 1 225 10800 90 T r T 1 t i 1 ( 1 1 1 1 I 9600 7 80— _ _.._ _ i _ - _ L ■ i - 1 t , - 1 i 175 8400- 70— f - - - III 0 1 r = 7200 - m 60 - t -v r 1 - - - - - , Q d �„ 1 I 1 () 1 m 125 a 6000— m 50— --- _______ - ; . CD in i t n m +n i t ■ E _ c 1 ■ �__ v +7 - t 1 75 3600 30 _- _ - - -- �_ ..___ -4 jr Iii I 2400 20 — ... __.____________ i .___ __ r i 1 _ , t 25 1200 10- t __________t__.__ ■ -- _ 0:00 1:00 2:00 3:00 4:00 5:00 6:00 • Time (HH:MM) Location: CLU Storage 1 30 Bc: 3:26:10 File Name: pak111nr4023.2•cell4.tst Customer. CINGSA 50 Bc: 4:13:40 Supervisor: Cahill 70 Bc: 4:33:20 Test Started: 12/4/2011 4:49:08 PM Density: 14 lbm/gal 100 Bc: 4:51:25 Test Stopped: 12/4/2011 9:41:00 PM System: FIexSTONE +.2 %046 +.5%0202 +.5 %0400 BHCT: 95 degF Printed: 12/4/2011 9:44:23 PM BHST: 106 degF Job Type: r Liner Rig Name: Nabors 105 Page 1 Instrument PAKSGSA Current Compressive Strength: 1491 psi Schlumberger Sampling Period: 30 seconds Final Compressive Strength: 1491 psi at 42:14:30 Prudhoe Bay Well Services Laboratory Compressive strength type B (more than 14 lb/gal) Telephone: +1 907 659 6155 Facsimile: +1 907 659 9221 120 16 1600 _ p - 14 1400 - -._- • *_. 100 - - _ 92 1200 -- 1111111111111111111P°P-4 II' • c 80 ._ a - ' _ 10 = 1000 — _ . - 1 ii: - o - 2) j --v N` o _ m - r i - — 1 to 60- 0 8— a 800—' _ _ _- _ _ ,- , at d - I 6 — a fit► -I_._ 40 it v ' < L r 4 Ott 4 1 _ 20 _ - 2 tr -7 _ - - - 7 0 0 0 0 15 30 45 60 Time (NH) • Location: CLU Storage 1 50 psi: 6:02:00 File Name: pakl llnr4023- SGSA.tst Customer. CINGSA 500 psi: 10:04:30 Supervisor. Peter Cahill 1000 psi: 18:32:30 Test Started: 12/4/2011 9:41:59 PM Density. 14.0 Ibm/gal 2000 psi: N/A Test Stopped: 12/6/2011 3:54:02 PM System: FIexSTONE +.2 %D46 +.5 %D202+.5 %D400 BHCT: 95 degF 12 hr 657 psi Printed: 12/6/2011 3:59:27 PM BHST: 106 degF 24 hr. 1183 psi Job Type: T Liner Page 1 Rig Name: Nabors 105 Static Gel Stregnth (100lbf /100ft2): 5:00:00 Static Gel Strength (500lbf /100ft2): 5:28:00 • • 'S'iWAC Cook Inlet Natural Gas M1 r CINGSA STO RA� E � Well: Cannery Loop #1 .7 ! \.l 11 A Schlumberger Company Kenai. Alaska INTEGRATED FLUIDS ENGINEERING RECAP Au ,I., A_ 4.111 x t o Prepared For: Cook Inlet Natural Gas Storage Alaska Cannery Loop #1 Kenai, Alaska Prepared by: Pete Nelson Reviewed by: Ray Figueroa Presented to: Conrad Perry Date: January 5, 2012 elFIE • Cook Inlet Natural Gas MI Well: Loop i STORAQE N. Schlumberger Company Kenai. Alaska Table of Contents 1. EXECUTIVE SUMMARY 2. BENCHMARKS & TARGETS 3. SUMMARY OF FLUID RELATED COST 4. WELL SUMMARY 5. INTERVAL DISCUSSION 6. PRODUCT SUMMARY 7. DRILLING FLUIDS SUMMARY 8. HYDRAULICS SUMMARY 9. DAILY DISCUSSION 10. FLUID VOLUME SUMMARY 11. HIGHLIGHTS / RECOMMENDATIONS 12. APPENDIX 1- PRODUCT CONCENTRATIONS FE • • Cook Inlet �� Natural : Gas Mi r7WAC - CINGSA S l V R 1-1 A Schlumberger Company Well: Cannery Loop # l QJ Kenai, Alaska EXECUTIVE SUMMARY No incidents or spills attributable to MI SWACO personnel occurred <� I tt. � during the drilling and completing of this well. . Safety Meetings attended - 20 meetings Rows Man -hours worked - 480 hours The drilling phase was shorter than expected due to high ROP, operational efficiency, and no major problems. Mi Minor formation losses occurred in the upper intervals of this well. 15 to 20 lbslbbl of SafeCarb 40 was added continuosly while drilling the depleted sands to help prevent loss. More significant losses occurred while circulating during rig repair, but were healed by spotting concentrated LCM pills. e IFE Recycled spud mud and Flo -Pro were utilized from CLU 4 to reduce the overall fluid cost. le WE • • �� Cook Inlet Natural SW4 Mi � CGSA STO RAQ - - IN Nell : Cannery Loop #1 a ' s a . 5 A Schlumberger Company - - Kenai- Alaska Project Summary IFE Project Services Cost Summary MiSWACO Well Name: Cannery Loop #1 Casing Program Conductor Bit Interval 11 Planned Actual Actual Actual Size Depth ' epth L Days Days DF $ CF $ 16 2,956' = 10 5 I 12.25 7.564' 10 6 I i I 1 9,659' 14 6 +3 34 20 Comments: DF = Drilling Fluids with engineering CF = Completion Fluids with field engineering services 1 ( IFE • Cook Inlet Natural.Gas Mi SWAC Well: ST©RA( j � ��"'�� Well: Cannery Loop #1 c o' b A 5chlumberger Company Kenai, Alaska Well Summary RECAP - WELL SUMMARY Operator : CINGSA Well Name : CLU Storage •1 Well Location : Kenai, Alaska Spud Date: 11/26/2011 Contractor: Nabors Drilling Toatl Depth (TD / TVD) : 9661 ft /5164 ft TD Date : 12110/2011 Project Engineer : Pete Nelson Max Temp / Max Angle: 104 •F / 86° Indira. Field / Area : Cannery Loop Fluids Engineer : Brown/Rooney MAX Mud Weight : 95 lb/gal Description : Gas Storage Fluids Engineer : Smith /Faulkner Screens, Equip. & Haul -off Cost 1$) : Warehouse : Niluski, Alaska Total Days to TD: 15 Product & Engineering Cost (S) : 32017.95 M-1 Weil No.: 136031 Air Gap / Water Depth : 0 / 0 ft Project Total Cost (S) : 324,817.95 End of Well 9,661 gas Mjectim Comments : Cur Dep& ikr IMnat Dates d- Dew Hole Mac Mad Max Max. !o � Told Carin TD /TVD Defied Stu W eight A sgtr Temp. he. Coot Codh.t flohl !4o Pad Dais Stye /T�e (tt) us 0s1 WSab Idesseesi t'FI tf1 1 26- Nov -11 30- Nov -11 5 133 in 2956/2653 2.967 16 92 5640 91 Spud Mud - coins in 2 1.Onc -11 6- eo -11 6 9.673 r] 7564/6930 4306 12 114 93 80.00 104 F1.OPRONT nom Casing 3 7- Dec -11 12-Dec-11 6 1 9659/5164 2,098 81/2 9.5 8600 98 FLOPRONT nes 7 in Potassium 4 13- Dec -11 15-Dee -11 3 Completion 9659/5164 91/2 8.7 86.00 100 IME Chloride Fluids elm it • • Cook Inlet Natural Gas Mi SWAC CINGSA STORA a Well: Cannery Loop #1 A Schlumberger Company - Kenai, Alaska IFE Drilling Interval Summary Surface Interval 115' — 2,967' MD (2,649' TVD) 16" Open Hole / 13 -3/8" Casing 8.8 — 9.3 PPG Reconditioned Gel Spud Mud The surface interval was drilled and the casing was run and cemented in 4 days. MI Swaco mud engineers were called out 11 -25 to recondition the stored spud mud for drilling. The well was spudded on 11 -26 -11 with used Gel /Gelex spud mud. The shakers were fitted with 165 mesh screens (API 100). A 16" bit (HCC VM1) and mud motor were picked up and ran in. The conductor had been previously cleaned out to 115' by a truck mounted rig. The hole was drilled to 348' making enough room to pick up the MWD and the remaining BHA. Drilling ahead began with penetration rates of 100 - 300 fph. The first 500' was predominantly clay /sand with a gravel layer between 200 - 250'. Pump rates for the first 400' were kept at 425 gpm to avoid excessive washout. A 40 bbl high viscosity sweep was built in the pill pit to be used at the driller's discretion. Several more sweeps were pumped in the first 2,000' to clean -out the unconsolidated sand and gravel. For most of the surface hole, the funnel viscosity was in the 45 - 55 sec /qt range and the YP was 13 - 17 lb/100ft Water was run at 20 - 40 bph to maintain volume. Gel and Gelex were added to maintain viscosity while adding water. By -900', the pump rate was up to 600 gpm. Hole cleaning for the surface hole was good and connections were problem free to TD. High viscosity sweeps were pumped at 400 - 500' intervals. The sweeps usually produced a 100% increase in cuttings. There were no problems with fill on connections and no short trips were made while drilling the surface hole. The rig's Derrick centrifuge was running most of the time while drilling. Sand content never exceeded 1.5 %, but it was in the 0.5 - 1% range for most of the surface hole. The final mud weight was 9.35 ppg. The funnel viscosity was 46 with a YP of 14. PolyPac Supreme was added at 1 ppb beginning at 2,300' to reduce the API fluid loss to <10 cc /30 min. After rigging up, the 13 -3/8" casing was run to 2,956' without incident. There were about 25 bbls lost while running the casing, mostly in the first 1,200'. An inner string was run using the 5" drill pipe that stung into the "EZ Cementer ". A full casing volume was circulated without losses. At this time, the mud was pre- treated with 0.5 ppb of sodium bicarbonate and 0.25 ppb of CF Desco. The cement job went well and the 12.0 ppg cement made it to surface. There were no losses while cementing. The cement job began with 40 bbls of 10.2 ppg mud push followed by 266 bbls of 12.0 ppg lead cement, followed by 65 bbls of 15.4 ppg tail cement. The cement was then displaced from the inner • Cook Inlet Natural Gas Mi SWAC CINGSA well: Cannery Loop #1 g STORAGE A Schiumberper Company Kenai. Alaska string with 43 barrels of 9.3 ppg spud mud. The hole wash -out was calculated at —IO%. One day was required to nipple down the diverter stack and then nipple up and the test the BOPE. Surface Interval Cost Summary M -I SWACO Interval Da s: 5 elFE • • Cook Inlet Natural Gas Mi SWACQ.- CINGSA STORA Well: Cannery Loop #1 Q nt b A Schlumberper Company Kenai, Alaska DRILLING FLUIDS & VOLUME SUMMARY INTFR V A I. 1 Operator : C1 NCSA Description : Gas Storage Start Depth / T VD : 0 R / 0 ft Well Name: CLUStorage t1 Location: Kenai, Alaska EndDepth /TVD: 29568/ 2653 8 Contractor : Nabors Drilliig Field / Area : Cannery Lop Total Depth Draed (ft) : 2967 Start Date : 26-Nov -11 Mod Type : Spud Mud Max uum Interval Angle (1:56 End Date: 30- Nov -I1 Hole Sae (W : 16 Maxinium Interval Temperature (°F): 91 Interval Days : 5 Casaig Size Iii) : 133/8 Fracture Gradient (lh/gaD : Water Depth 00 : Top of Liver (8) : Maximum Interval Mud Weight (b /gaD : 9.2 PRODUCT & MUD ENGINEERING USAGE ON THIS INTERVAL Total Product Concentration Ri Time Distribution Product Name Unit Cost (S) Unit Total Cost (S) %Total Cost Bb/bbll Min Max Average Name Days CAUSTIC SODA 1= 3 ■ 0.43% 0.028 0.029 0.029 Rig Up/Service 023 CF DESCO 0 Mi 23 == 4.02% Drilling 121 ENGINEERING SERVICE 12 MIMI 48.04% Tripping 127 FLOWZAN I= 12 Mill 6.77% 0.044 0.103 0.089 NarProductiveTime M -1 GEL EXPORT MI 420 Mil. 21.73% 3.621 8119 4540 BOP NU 1 M-I W ATE (BARITE) III. 180 9.10% 2.841 2.841 2.841 BOP TestinX PECAN NUT PLUG MEDIUM 1 1.1 0.11% Cementing POLY PAC SUPREME UL =II 10 5.84% 0.095 0.097 0.095 Condition Me 023 PORTABLE ARTIC MUD LAB RENTAL 5 ■ 2.79% Condition Mud PRE -JOB SAFETY MEETING 2 Coring SODIUM BICARBONATE INE 15 ■ 1.17% Mr Survey Running Casing 0.81 BOP ND 025 'Test Well Displace Well Product & Mud Eng. Total Cost (S) 100% Total Days 5 Volume Description Volume (bbD Losses Detail (bb» 1. Volume on board +start Haul off 1,686 , 2. Received s , ped 184 3. Back Loaded /Transferred 1.296 Shakers 4. Remaining 544 Left Behind Csg 5. Volume Built 1,485 Centrifuge 6. Surface Volume Lost 1,870 Formation 7. Subsurface Volume Lost Left in Hole Interval Comments : De - Suter Fluid Processed _ Total Mud Losses (bbl) 1.870 TOTAL INTERVAL COST (5) e IFE • • Cook Inlet Natural Gas Mi SWAC CINGSA � Well: C a n n e r y Loop # 1 STV I111 A schlumberger Company Kenai, Alaska IFE Drilling Interval Summary Intermediate Interval 2,967' MD (2,649' TVD) — 7,573' MD (4,935' TVD) 12 -1/4" Open Hole/ 9 -5/8" Casing 9.0 - 9.3 ppg FLO -PRO Drilling Fluid The intermediate interval took 6 days with actual drilling completed in 3 days. After the surface interval was completed, the pits were cleaned and 800 barrels of used Flo -Pro from the previous well was transferred from the tank farm to the rig pits. This mud was re- conditioned with Flowzan, KCL, PolyPac, Kla -Gard, and Asphasol. The used Flo -Pro had a strong ammonia smell when transferred to the rig pits. This was cement contamination from the previous well. The mud was treated with citric acid and sodium bicarbonate. The ammonia smell was gone after the treatment. A steam hose was dropped into the active pits and warmed the mud to 86 degrees by displacement time. A 12.25" bit (HCC QD 505XX), AutoTrak, MWD, and LWD were picked up and run in the hole. The cement, shoe, and 20' of new formation were drilled out to 2,987'. The spud mud was displaced out of the hole with the old Flo -Pro at 8 to 9 barrels per minute. A FIT was performed to 15.0 ppg EMW. After the displacement, pit 6 was cleaned and an additional 400 barrels of used Flo -Pro were transferred to the rig pits from the tank farm. The shakers were screened to 165 mesh screens (API 100). The mud weight was at 9.0 ppg and the funnel viscosity was 47 with an 18 YP. Pump rates were in the 580 to 610 gallons per minute range. Top drive rotary speed was 130 RPM. There were no problems with mud running over the shakers. The used Flo -Pro was already well sheared and the mud temperature was at 86 degrees. Drilling ahead proceeded with rates of penetration in the 200 to 250 feet per hour range. The inclination was at 58 degrees. This angle was held for most of the intermediate hole. Hole cleaning appeared to be fine based on the amount of cuttings coming over the shakers. At 3,944', a 40 barrel high viscosity sweep (FV =150) was pumped around and resulted in only a 25% increase in cuttings. Water was run at 20 barrels per hour while drilling ahead. Flowzan was added to maintain a yield point of -20. LoTorq was added and maintained at a 3% concentration. PolyPac Supreme was added at 2 pounds per barrel to lower water loss to 6 to 8 cc range. KCL was added to maintain a 6% concentration. The centrifuge was run continuously while drilling to remove drill solids. At 5,234', a wiper trip back to the shoe was made while pumping and back - reaming. There were not any significant tight spots or problems while back - reaming. The trip back to bottom on elevators was problem free. During the wiper trip the shakers were screened up to 200 mesh screens (API 120). At about 5,500', the lubricant concentration was increased to 4% in preparation for directional work. From approximately 5,700' to 7,600', an azimuth change of nearly 90 degrees was made. Of the 5 wells erE • • Cook Inlet Natural Gas Mt "' wACa.- CINGSA STORA Well: Cannery Loop #1 $g A Schlumberger Company Kenai, Alaska on the CINGSA pad, this hole was the most difficult directionally. While drilling through this large tun. LoTorq lubricant was maintained at 4% and resulted in torque never exceeding 18K and was mostly in the 14 to 16K ft-lbs. A 40 barrel high viscosity sweep was pumped at 6,813' with a 209 increase in cuttings indicating that the hole cleaning through the turn was good. At approximately 6,900', Asphasol Supreme and Resinex concentrations were increased in preparation for drilling the coals near the top of the Sterling Formation. The coals were drilled without problem and the top of the Sterling was drilled without losses. Upon reaching TD at 7,573', a partial bottoms up was circulated, followed by pumping a 100 barrel 40 pound per barrel SafeCarb LCM pill as a precautionary measure to prevent losses. The final trip out of the hole was made while back - reaming and pumping all the way to the shoe. There was one notable tight area at —5,600' which was worked through. At the shoe, a bottoms up was circulated to clean out the casing. A 100% increase in cuttings was observed while circulating at the shoe. A dry job was pumped and the trip out continued. The drilling BHA was laid down. At TD, the mud weight was 9.3 ppg with a 19 yield point and the funnel viscosity was 49. The lubricant concentration was 4 %. Black product concentration was 10 ppb. Fluid loss was 6.7 cc. It was decided by CINGSA not to do a clean - out run on this well prior to running casing. Weatherford was rigged up and the 9-5/8" casing was successfully run and landed at 7,564', however, there were problems running the last 3 joints. When at the 13-3/8" shoe, the mud was circulated and conditioned with Desco and sodium bicarbonate. From 7,465' to 7,564', it was necessary to wash down working through the Sterling B -5 coal. At one point while working through the coal, the casing was stuck and circulation was not possible. A call was made to town to get permission to pull up to 350K. Permission was given and the casing was pulled free allowing circulation to be re- established. About 50 barrels of mud were lost while working the casing to bottom. After the casing was landed, the mud was again conditioned with Desco and sodium bicarbonate. A full casing volume was circulated (558 barrels) at a rate of 6 to 7 barrels per minute. While circulating with the casing on bottom, there were no significant losses. Preparations were made for cementing. The 9 5/8" casing two stage cement job was successful, although there was a significant amount of excess cement to surface for both stages. The first stage began with the rig pumping 35 barrels of 10.2 ppg mud push, followed by Schlumberger pumping 227 barrels of 12 ppg lead, followed by 44 barrels of 15.4 ppg tail cement. The rig then displaced the cement with 573 barrels of Flo -Pro at 3 barrels per minute to bump the plug. There were 22 barrels of losses while pumping the stage. Cement made it to surface while displacing. About 95 barrels of cement contaminated mud and cement were diverted to the cellar. The DV collar was then opened. A bottoms up was circulated with the rig pumps. It was necessary to dump approximately 75 barrels of excess cement and cement contaminated mud. The 2n stage began with 35 barrels of 10.2 ppg mud push, followed by 212 barrels of 12 ppg cement. The cement was then displaced with 265 barrels of mud. About 80 barrels of cement and cement contaminated mud was dumped at the surface. A final cement sample from the cellar weighed 12.0 ppg. This completed the 9-5/8" casing cement job. � IFE • • M� SWAC CINGSA Co ©k Inlet Natural Gas TO S RAC E e' Well: Cannery Loop #1 1 V a A Schlumberper Company - Kenai, Alaska While waiting on cement, the rains were changed and tested, and additional drill pipe was picked up. This completed the intermediate interval. Intermediate Interval Cost Summary M -I SWACO Interval Days: 7 IFE • • Cook Inlet Nafural.Gas Mi SWAC Well: STORAGE A Schlumberper Company ... - - Well: Cannery Loop #1 a t No Kenai. Alaska DRILLING FLUIDS & VOLUME SUMMARY INTF.RVA1. Operator : CINGSA Description : Gas Storage Start Depth / T VD : 2956 ft 12653 tt Well Name : CLU Storage 11 Location : Kenai, Alaska End Depth / T VD : 7564 ft 14930 ft Contractor : Nabors Drilling Field / Area : Cannery Loop Total Depth Drilled (ft) : 4,606 Start Date : 1- Dec -11 Mud Type : FLOPRO Nr Maximum Interval Angle r): 80 End Date : 6- Dec -11 Hole Size (irl : 12114 Maximum Interval Temperature (°F) : 104 Interval Days : 6 Casing Sae (iO : 9 5/8 Fracture Gradient Mo/gab : Water Depth (ftl : Top of Lier (ft) : Maximum Interval Mud Weight (am /ga0 : 93 PRODUCT & MUD ENGINEERING USAGE ON THIS INTERVAL Total Product Concentration Rig Time Distribution Product Name Unit Cost 01 Units Total Cost $) % Total Cost Ob/bbl) Min Max Average Name Days ASPHASOL SUPREME IMM 209 ■ 1039% 2399 3.973 3.461 Rig Up/Service 0.42 CAUSTIC SODA _ 22 0.54% 0.278 0508 0.442 Drilling 3 CF DESCO B MI 65 ,, 1.92% 0.102 0388 0.175 Tripping 0.58 , CITRIC ACID 22 1 .61% 0.298 0.610 0.375 Non - Productive Time CONQOR 404 4 336% 0.859 1226 0.959 BOP NU ENGINEERING SERVICE 12 8.12% BOP Testing FId7WZAN NEM 41 Mi■ 311% 0.612 , 0.759 0.678 Cementing 0.42 IM -CARD ME 3 EN= 131% 0.213 0.915 0.667 Condition Hole LOTORQ IIIM 3730 EM= 35.77% 5792 11.841 9.947 Condition Mud M-I WATE(BARITE) ME 430 3.67% 2.930 2.932 2.931 Coring POLYPAC SUPREME UL MEI 67 ' 6.61% 0.612 1.857 1504 C8r Survey PORTABLE ARTIC MUD LAB RENTAL _ , 6 _ 0.57% Direction Work POTASSIUM CHLORIDE (1CQ.) IMI 813 14.19% 8.617 20.931 17541 Fishing PR&)OB SAFETY MEETING 12 Lost Circ. RES1NEX _ 97 _ 5.91% 0.693 1.984 1.675 Reaming SAF&CARB 250 M. 48 ■ O80% 0.682 1.711 1362 Rig Repair SAF&CARB 40 NIM 48 ■ 080% 0533 1.599 , 1230 Running Casing SODIUM BICARBONATE ■ 41 ■ 0.54% 0.149 0.723 0283 Testing Product & Mud Eng. Total Cost (S) 100% Total Days 4.42 Vohune Description Volume (bbl) Losses Detail (bbl) 1. volumes start 544 Haul off 1,253 2. Received Dumped 425 , 3. Back Loaded / Transferred Centrifuge 221 4. Remaining 1,307 Formation 74 5. Volume Built 1,632 Shakers 6. Surface Volume Lost 1,899 Lr t Behind Csg 7. Subsurface Volume Last 74 Left in Hole interval Comments : De - Sitter Fluid Processed Total Mud Losses (bbt) 1,973 TOTAL INTERVAL COST (5) elm • • Cook Inlet Natural Gas Mi SWAC CINGSA STORAJ A 5chiurnber ®er Company —"" Well: Cannery Loop #1 , p �b Kenai, Alaska IFE Drilling Interval Summary Injection Interval 7,573' MD (4,935' TVD) — 9,661' MD (5,164' TVD) 8 -1/2" Open Hole / 7" Casing 9.3 - 9.5 ppg FLO -PRO Drilling Fluid The production interval required 6 days to complete with drilling taking 2 1/2 days. The Flo -Pro from the intermediate interval was re -used to drill the production interval. The tank farm was dismantled during the drilling of the intermediate interval. One 500 barrel tank was moved close to the rig to be used for displacements. A 100 barrel, 40 pound per barrel LCM pill consisting of SafeCarb 40 and 250 was built in pit 6 prior to drilling out of the shoe. An 8 -1/2" bit (HCC HCR503ZX), mud motor, MWD, and LWD were picked up and run in the hole. The DV collar was drilled out at 3,772'. The cement, shoe, and 20' of new formation were drilled out to 7,593'. The mud was treated with sodium bicarbonate and Desco while drilling cement. The mud weight was at 9.3 ppg with an 18 yield point. A FIT was performed to a 14.9 ppg EMW. The 8 -1/2" hole was control drilled at 70 to 80 feet per hour. Pump rates were between 390 and 415 gallons per minute. The inclination of the hole was 80 degrees and increased to 86 degrees at TD. Steel Lube EP was added at Y2 to 1% while drilling for metal -to -metal lubrication inside the 9 -5/8" casing. LoTorq was maintained a 3 to 3 ' /2 %. The lubricants did a good job of keeping the torque in a manageable range of 12 to 16K ft-lbs. The fluid loss was kept in the 5 to 7 cc range. There were only seepage losses while drilling ahead. SafeCarb 40 was continuously strung -in to the active system while drilling resulting in concentrations of 15 to 20 pounds per barrel in the active mud system. PolyPac Supreme was added at 2 pounds per barrel to control the fluid loss. The centrifuge was run at all times to lower the mud weight and reduce drill solids. Water was run at 20 barrels per hour to dilute drill solids and maintain volume. Chemical concentrations were maintained while running water. Excess drilling mud was transferred to the tiger tank_ A short trip back to the shoe was made at 8,636'. Back - reaming and pumping was going well until —8,100' where the top drive failed. The next 9 hours were spent on top drive repair. The well was circulated slowly at 2 barrels per minute and the pipe was reciprocated while repairs were made. Upon fixing the top drive and pulling out of the hole, losses began at about 10 barrels per minute. Tripping out of the hole continued to the shoe where losses had slowed to 1 to 2 barrels per minute. Total losses were 240 barrels_ A 50 barrel LCM pill was pumped at the shoe while doing rig service. The trip back to bottom saw no problems and no apparent losses. Another 50 barrel LCM pill was pumped when back on E • Cook Inlet Natural .Gas Mi CINGSA STO RA °—'" Well: Cannery Loop #1 � a A Schlumberger Company Kenai, Alaska bottom. There were no more losses. Drilling ahead continued to 9,661' to TD the well. The mud weight was at 9.3 ppg with a 17 yield point. Water loss was at 5.7 cc. The lubricant concentration was at 4 %. The rig then back reamed and pumped to the shoe. There were a few tights spots associated with coals in the lower 200' of the well that were worked through. At the shoe, a sweep was pumped to clear the casing of cuttings. A dry job was pumped and the drill string was pulled out of the hole on elevators laying down the drilling BHA. This was followed by Baker Atlas running a CBL over the intermediate casing. Weatherford was rigged up and preparations were made for running the 7" liner. The 7" liner was successfully rim to 9,659'. There were no losses while running the liner or while circulating. It was necessary to wash down the last 2 joints. Circulation was established at 4 barrels per minute and a bottoms up was pumped (5,700 strokes). The liner top was at 7,343'. Schlumberger was rigged up for cementing. The cement job went well with no significant losses. It began with a 40 barrel 11.5 ppg mud push spacer, followed by 73 barrels of 14.0 ppg cement, followed by 82 barrels of liner perf pill (viscosified 6% KCL brine), followed by 130 barrels of 9.4 ppg Flo -Pro. The plug was successfully bumped. The liner packer was then set and the liner setting tool was released from the packer. A nerf was dropped in the drill pipe and a bottoms up was pumped to circulate out any excess cement from the liner top. There was no cement detected at the surface. This completed the injection interval. Injection Interval Cost Summary M -I SWACO Interval Days: 6 e INFIE • • MI SWAG CINGSA Cook Inlet Natural Gas Well: Cannery Loop #1 STORAC �, A Schlumberger Company - Kenai, Alaska DRILLING FLUIDS & VOLUME SUMMARY TNTFRVAT. % Operator : CINGSA Description : Gas Storage Start Depth / T VD : 7564 ft / 4930 ft Weil Name : CLUStorage 11 Location: Kena 4Alaska End Depth / TVD: 9659 ft / 5164 ft Contractor : Nabors Dnlbrig Field / Area : Cannery Loop Total Depth Drilled (N) : 2,098 Start Date : 7- Dec -11 Mod Type: FLOPRO NF Maximum Interval Angle (°1: 86 End Date : 12- Dec -I1 Hole Sae (in): 81/2 Maximum Interval Temperature ( 98 Interval Days: 6 Liner Size (iO: 7 Fracture Gradient (lb/,,a0: Water Depth (ft) : Top of Liner 00 : 7,343 Maximum Interval Mod Weight (6/gal) : 95 PRODUCT & MUD ENGINEERING USAGE ON THIS INTERVAL Total Product Concentration Time Distribution Product Name Unit Cost (S) Units Total Cost (S) %Total Cost pb/bb8 Min Max Avenge Name Days ASPFIASOLSUPREME _ 60 IMMI 3.94% 3.002 4258 3539 RigUp/Service 023 CAUSTIC SODA ` 10 =I 032% 0.426 0.538 0.493 Drilling 2.08 CF DECO 0 I= 23 0.90% 0286 0537 0.404 Tripping 055 CONQOR 404 8 8.87% 0.852 2597 1.926 Non-Productive Time ENGINEERING SERVICE 12 10.72% BOP NU FLOWZAN MEM 37 4.66% 0.594 0.751 0.701 BOP Testing LOTORQ ME 990 IMM 1254% 8.052 11526 10.131 Cementing 021 LUBE776 MEM 8 Milil 9.05% 1.009 11505 1515 Condition Hole 0.4 M- IWATE (BARITE) M 210 237% 1.912 71179 3.708 Condition Mud POLYPAC SUPREME UL EMI 87 11.33% 1.720 3.066 2.608 Coring PORTABLE ARTIC MUD LAB RENTAL _ . 6 IIIIII 0.75% Cr l Survey POTASSIUM CHLORIDE ().CL) _ 450 10.37% 17648 22.456 19.362 (Erection Work PRE-10B SAFETY MELTING 12 Fishing SAFE CARE 20 = 80 .. 1.66% 0244 2.593 1335 Last arc. SAFE CARB 250 _ 149 328% 3.098 4.952 3.863 Reaming 0.4 SAFE -CARE 40 ■ 431 ■ 9.49% 3377 10542 8.605 Rig Repair 021 SODIUM BICARBONATE ■ 35 ■ 0.61% 0.686 1.285 0.977 Running Casing 058 STEEL LURE EP MM 12 9.15% 1.112 2.064 1.730 Testing W ireline Logs 0.79 _ LL PU DP 025 Product & Mud Eng. Total Cost (S) 100% Total Days 6 Volume Description Volume (bbl) Losses Detail (bbl) 1. Volume• Mart 1,307 Haul off 1,153 2. Received Formation 240 3. Back Loaded / Transferred Shakers 4. Remaining 934 Left Behind Cag 5. Volume Built 1,020 Centrifuge 6. Surface Volume lost 1,153 Let in Hole 7. Subsurface Volume Lou 240 1]e - Sifter interval Comments : Dumped Fluid Processed Total Mod Losses (bbl) 1,393 TOTAL INTERVAL COST (5) 120,329.49 elm Cook Inlet Natural Gas Mi TWA 1 CINGSA Well: Cannery Loop #1 T+� S RA A 5chlumberger Company Q E Kenai, Alaska IFE Drilling Interval Summary Completion 7" Tubing Completion Interval: A polish mill was picked up and run in the hole to clean out the polish bore receptacle at 7343'. After cleaning out the PBR and circulating the hole clean using one pit and circulating through the trough; work continued cleaning the pits and mixing the 8.6 ppg KCI brine. The well was displaced to 8.6 KCL brine before pulling out of the hole laying down drill pipe. Test BOP's before rigging up Weatherford and running the 7" tubing with seal bore assembly. Two drums of Congor 303A corrosion inhibitor, 10 gallons of Myacide bactericide, and 5 barrels of diesel were spotted in the annulus after spacing out and before landing the tubing hanger. Completion Interval Cost Summary M -I SWACO Interval Days: 4 OWE • • Cook Inlet N ©iural,Gas Mi SWAC CINGSA C TORA A Schlumberper Company Well: Cannery LOOP #1 J , op Kenai, Alaska DRILLING FLUIDS & VOLUME SUMMARY INTFRVA! 4 Operator : CI I.ESA Description : Gas Storage Start Depth / T VD : 9659 ft / 5164 ft Weil Name :CLU Storage 11 Location: Kenai. Alaska Fad Depth / TVD : 9659 ft / 5164 ft Contractor : Nabors Drilling Field / Area : Cannery Loop Total Depth Draed (ft) : Start Date: 13- Dec -11 Mod Type: Potassium Chloride Maximum Interval Angle PI : 86 End Date : 15- Dec -11 Hole Sae lid : 81/2 Maximum Interval Temperature (F) : 100 Interval Days: 3 Comp!. Equip. Size lid : 7 Fracture Gradient (Ib/ga8: Water Depth (ft) : Top of Liter (ft) : 7,343 Maximum Interval Mud Weight (WgaD : 8.7 PRODUCT & MUD ENGINEERING USAGE ON THIS INTERVAL Total Product Concentration Time Distribution Product Name Unit Cost (S) Links Total Cost (S) % Total Cost (lb/bbl) Min Max Average Name Days CONQOR A303 MN 2 535% 1311 1311 1.311 Rig Up/Service ENGINEERING SERVICE IMI= 8 IMMMI 45.96% Drilling ON M-I WATE(BARI E) IIIII 25 1111111 1.81% 0.619 0.624 0.622 Tripping 0.96 MYACIDEGA25 MIR 2 1.1111 159% 0.119 0.119 0.119 Non - Productive Time PORTABLE ARTIC MUD LAB RENTAL t 4 321% BOP NU POTASSIUM CHLORIDE (KCL) t 284 42.08% 19214 21.588 20.767 BOP Testing 033 PRE -JOB SAFETY MEETING 9 Cementing Condition Hole 0.56 Running Casing 0.1 Product & Mud Eng. Total Cost (Si 18,71353 100% Total Days 1.99 Volume Description Volume (bbl) Losses Detail (bbl) 1. Volume C start 934 Haul off 1,033 2. Received Shakers 3. Back Loaded / Transferred Left Behind Cag 4. Remaining 556 Centrifuge 5. Volume Built 655 Formation 6. Surface Volume Lost 1,033 Left in Hole 7. Subsurface Volume Lost De - Sifter Interval Comments : Dumped Fluid Processed _ Total Mud Lasses Ibbl) 1.033 TOTAL INTERVAL COST ($) elm • • /� �+ /� //� Cook Inlet Natural Gas �/ ii i7` Y YM�� ...., CINGSA STO RA Well: Cannery Loop #1 •J t Q K. A 5chiumberger Company Alaska DAILY DISCUSSION RECAP 11/26/2011 T1=796 Report No .=1 Prep to spud. Drill to 348'; POH for BHA. Keep mud at 55-60 F. viscosity while pumping HV sweeps as needed. Drill to 796' at midnight. Transfer 550 Bbls mud to Pits: add gel for a 55 FV. Drill to 348'; P011 for BHA. Drill to 796' at midnight. 11/27/2011 TD=2967 Report No� 2 Drilled from 796' to TD of 2967' MD (2.649' TVD). Circulate and condition hole, prepare to short trip and POOH for casing run. Run water as needed for volume(20 -40 BPH). Mix gel for viscosity; add PolyPac UL to reduce fluid loss before reaching TD. Drilled from 796' to TD of 2967' MD (2.649' TVD). Circulate and condition hole. 11/28/2011 TD 2967 Report Nom 3 Circulated and conditioned mud. pumped 40 bbl hi -cis sweep and circulated out. Short trip to 785', TIH to 2.967'. no fill. Pumped 40 bbl high cis sweep. C &C. TOOH laying down BHA. RIH with casing, 73 joints 13 3/8" 68# FT J -55. Landed at 2,956' MD. Mixed dry job with MI-WATE. Hauled off remaining WBM in Storage Tanks 2 & 3, 379 bbls. Ran 73 joints. 13 3/8" casing, 68# d -55. Landed at 2,956' MD. 11/29/2011 TD 2967 Report No. =4 TIH with inner string to 2,912'. Installed cement lines. Sting into float with inner string. RU Cement head. Circulated and conditioned hole. Cement 13.375" surface casing. TOOH and lay down tools. Nippled down and began nipple up operation. Mixed Desco, sodium bicarbonate to pre -treat mud for cement job. Hauled off 620 bbls WBM and 481 cement & waste water. Cemented 13 3/8" casing. Nippled down and began rippling up operation. 11/30/2011 TD 2967 Report No. 5 Continued NU operations. Began picking up BHA to run in with 12.25" bit and drill out cement. Transferred -600 bbls of used Flo -Pro from the tank faun to the rig pits using vac trucks. The old Flo -Pro had a strong ammonia odor from the 2 -stage cement job from the previous well. Treated with citric acid and sodium bicarbonate to remove the strong odor. Re- conditioning the used Flo -Pro with Flowzan. PolyPac, LoTorq. and Conqor 404. Continued NU operations. Began picking up BHA to tun in with 12.25" bit and drill out cement. 12/1/2011 TD 4582 Report No.= Continue to drill out cement and 20' of new formation. Perform FIT to 15.0 ppg EMW. Displaced WBM to 9.0 FloPro nub (from previous well). Drilled ahead to 4.582' MD (3,512' TVD). eVE • • Cook Inlet Natural Gas M,wac CINGSA STOR�A ... Well: Cannery Loop #1 a .� ° A Schlumberger Company Kenai, Alaska Displaced the well to 9.0 ppg FloPro at 8 -9 bpm. Hauled off all displaced spud mud. Transferred all remaining Flo -Pro to the rig pits. -V675 bbls. Hauling off all remaining sump fluid/solids and cleaning the rain- for -rent tanks. Treating mud while drilling ahead with Flowzan. KCL, Asphasol, Conqor 404, and LoTorq. Running the centrifuge to reduce drill solids and weight. Pumped a high vis sweep at 3944', 25% increase in cuttings. Drilled out cement and performed FIT to 15.0 ppg EMW. Displaced WBM to Flo -Pro. Drilled ahead to 4,582' MD. 12/2/2011 TD =5957 Report No °7 Drilling ahead to 5,234' MD. Wiper trip back to the shoe while back - reaming, CBU at the shoe. Service top drive. RIH. and drill ahead to 5,957' MD (4,227' TVD). Running water at 20 bph to maintain volume. Adding Flowzan for viscosity. Increased lubricant concentration to 3% with LoTorq. Adding PolyPac for fluid loss control. KCl for hole stability. Continue to run the centrifuge to remove drill solids. AI MM has finished cleaning all tanks and have started removing plastic and scaffolding. Drilled ahead to 5,957' MD. 12/3/2011 TD =7573 Report No =8 Drilled to section TD of 7,573' MD (4,935' TVD). Prepare to back -ream out of hole. Running water at 20-30 bph to maintain volume. Adding PolyPac and Resinex to lower fluid loss. Adding KCL to maintain 6% concentration. Increased lubricant concentration to 4 %. Continue to run the centrifuge to remove drill solids. Pumped a sweep at 6813', 20% increase in cuttings. Hole cleaning appears to be good. Drilled to section TD of 7,573' MD (4,935' TVD). Prepare to back -ream out of hole. 12/4/2011 TD 7573 Report No.=9 Back - reamed out of hole to surface. LD BHA and began RU pipe handling equipment for 9 5118" casing run. Pumped a 100 bbl 40 ppb LCM pill at TD. LCM was 20 ppb of SafeCarb 40 and 20 ppb of SafeCarb 250. No significant losses at TD. ADAM haul off totals include 505 bbl water from ice melt and rain into cellars. 221 bbl centrifuge discharge. Back -reamed out of hole to surface. LD BHA and began RU pipe handling equipment for 9 5118" casing run. 121512011 'i i�7573 Report No.-10 Continued running in with 9 518" casing to setting depth. 7,564' MD. RU Schlumberger Cementing unit and landing tools. Prepare to cement. Pre- treating mud with sodium bicarbonate and Desco in preparation for the cement job. Continued running in with 9 518" casing to setting depth 7,564' MD. RU Schlumberger Cementing unit and landing tools. 12/6/2011 TI) 7573 Report No. 1 I Washed casing down from 7465' to 7564', working casing through the B -5 coal. Land casing. Rig up to cunt. PJSM. 1st Stage pumped 40 bbls of 10.2 mud push followed by 273 bbls of cement. followed by 573 bbls of mud to displace. Plug bunged. 2nd Stage - pumped 40 bbls spacer followed by 212 bbls of cement, followed by 265 bbls to displace. Rig down cementers. WOC. Prepare to RIH with 8.5" drilling assembly. • • M1 SiWAC CINGSA Cook Inlet Natural has STORAQE Well: Cannery Loop #1 �, e A Schiumberper Company - _ Kenai, Alaska Lost 22 bbls while pumping the lead on the 1st stage. Cement to surface on the 1st stage while displacing. Dumped 95 bbls of cement and cement contaminated mud. After opening the DV collar. dumped another 75 bbls of cement contaminated mud. 2nd stage - lost —12 bbls while pumping cement. While displacing with mud. dumped 80 bbls of cement at the surface. Total AIMM Haul off was 552 bbls cement contaminated mud. Cemented 9 5/8" casing. 12/7/2011 TD =7680 Report No: 12 Pick up and RIH with 8 1/2" drilling BHA. Slip & cut drilling line. Pick up 51 joints of 5" DP. RIH and drill out DV collar. Test casing to 2500 psi. Continue to RIH. Drill out shoe track and old hole to 7573'. Drill 20' new hole to 7680'. Treating mud with Desco and sodium bicarbonate while drilling cement. Built a 100 bbl 40 ppb LCM pill in pit 6. Added STEEL -LUBE EP for metal -to -metal lubrication. PU and RIH with 8 1/2" BHA. Drilled out shoe track and 20' new hole to 7,680' MD. 12/8/2011 TD =8638 Report No. 13 Continued drilling to 8,638' MD (5,061' TVD). Began short trip. preceded to 8.140'. top drive problems. Waiting on repair. Added 1/2% steel lube EP - reduced torque from 13 -14K range down to 11 -12k. Also adding LoTorq to maintain lubricant concentration at 4 %. Continuously stringing in SafeCarb 40 as LCM. Adding PolyPac to lower fluid loss. Continued drilling to 8,638' MD (5,061' TVD). Began short trip. preceded to 8.140'. top drive problems. 12/9/2011 TD=9268 Report No. =14 Repair top drive. Continue to back -ream out of the hole. Begin losing mud. Pumped LCM pill at the shoe. Shut down and serviced top drive. RIH to 8638' washing down the last stand. Pump another 50 bbl LCM pill. Drilled ahead to 9,268' MD (5,115' TVD). Transferred 100 bbls to Storage Tank. Added 100 bbls to active to reduce MW. Lost 240 bbls of mud while back - reaming from 7900' to 7700'. Spotted 40 bbls SAFECARB LCM pill @ 40 lb/bbl at the shoe. Transferred all mud from the tiger tank back to the rig pits. Pumped a 2nd 50 bbl LCM pill when back on bottom. Losses stopped. Continued adding water, chemicals to dilute fluid and maintain MW, ECD. Repair top drive. Drilled ahead to 9,268' MD (5,115' TVD). 12/10/2011 TD '9661 Report No: 15 Drilling ahead to ID at 9661'. CBU. Pump and back ream to the shoe. CBU. Puinp dry job. POOH and lay down BHA. Continue to string -in calcium carbonate to the active system to prevent losses. Main aining lubricant concentration at 4 %. Adding PolyPac to keep water loss low. Transferred 200 bbls of mud to the Tiger Tank. Running water and the centrifuge to lower the mud weight and reduce drill solids. Drilling ahead to TD at 9661'. CBU. Pump and back ream to the shoe. CBU. Pump dry job. POOH and lay down BHA. 12/11/2011 TD =9661 Report No. 16 Continue to POOH Lay down BHA. Rig up and run CBL. Rig up and run the 7" liner. Sultan"? a 100 bbl viscosified 6% KCL brine to spot in the liner during the cement job. Cleaned pit 6 to make the pill. Hole losing 1 -2 bph. Continue to POOH Lay down BHA. Rig up and run CBL. Rig up and run the 7" liner. erE • . M1�WAC Cook Inlet Natural has CINGSA �� Well: Cannery Loop #1 STORA � A Schlumberger Company Kenai, Alaska 12/12/2011 TD9661 Report No =17 Run liner 7" liner drill pipe conveyed to 9659'. Stage up to 160 gpm. CBU. PJSM. Pump cement job - 40 bbls of spacer followed by 73 bbls of 14 ppg cement, followed by 84 bbls of 8.7 ppg liner pill. followed by 135 bbls of 9.4 ppg Flo -Pro. While circulating bottoms up at the shoe, treated mud with sodium bicarbonate and Desco. Built a 40 bbl 11.5 ppg cement spacer in the pill pit. No losses while running the liner or cementing. No cement returns to surface. Hauling off all surface mud. Run liner 7" liner drill pipe conveyed to 9659'. Cemented liner. 12/13 /2011 TI Report No. 18 RIH with mill to 7343'; clean out PBR, CBU; clean pits and build brine for displacement. Displaced FLO -PRO fluid to surface with KCI brine. POOH with drill pipe. Cleaning all pits and lines. Filed pits with water and added 250 sacks KCl to make 6% brine. RIH with mill to 7343'; clean out PBR, CBU; clean pits and build brine for displacement. 12/14/2011 Report No =19 Laid down and inspected drill pipe from 7124'; trip in to 1648'; laid down drill pipe from 1648' and BHA; pulled wear bushing: pick up tools—drain stack; dummy rum landing joint. hanger, made up 7" test joint, tools; pulled test plug: test BOPE; laid down test tools; rig down from test; rig up to run casing: change to long bails for circulating 7 "; pre - job; made up shoe track seal assembly; RIH on 7" tubing 6% Potassium Chloride brine in hole and pits 12/15/2011 TD =9661 Report No. 20 RU and run 7" tubing; space out; pump in packer fluid; land tubing. ND BOPS; NU tree. Note: Daily charges include engineering service and mud lab rental for 16 December 2011- -final day on well for MI Swaco Reverse in diesel, Myacide and Conqor 303A to 7" tubing annulus: clean pits of remaining, brine and discard W • • Cook Inlet Notural.Gos Mi SIN,P......1:10.-,„••- CINGSA E ,--,—_,......-- Well: Cannery Loop #1 sToRAQ a A Schlumberger Company - Kenai, Alaska Fluid Volume Summary Mi SiAtAC) .- Volume Account Report A schtumbercer Company, .. _.----• Opera= COMM Spud Ode: November 211i, 2S11 Wel Ilmne: cu storage A Installalac ..... -- __ --- - 1 !dud Whose pig J Mud WI paaj Volume lost MIMI I -- 0 A i iiIii _ r Li Dt i I re ; Dept) Mull Typ* MIT 1 g ii I i 1 I 1111 Rematk g 1 I 1 ii ' a 4 I i - I 1 ico.111 ig i ll' 1 ! 02 a ,a, f a i I 1 I I 4 , 0 4,4-,,,,,n+,,,,, .,), ', 08 Ja oleo R 0 96: 99 ? telt 2•07 '&26 .=79 , i •_, 40 x 1 40 . ••2:0•20n 0,6 AO. ; OE eR AIN 8 J /CO 44 i 0 ; J70 n8103311 O 110 ner dew Sten, 0 A 947 9E ! 11 ' tr21 . 2020 to 2 i II 004 ; 07,770 OR* 701 60 to ellet 8 6 4. Et • 72e8 • itte .6.4 i 7 , 00627 11 0.3•6 70, .; 00 SIMON NJ 0 0 Lft ; 141 , ; CI= WS taC , re. _ _ VI/Me 0070 4970 • I Last OW 42 am ' COO 041 titt4 MO ICE on 91 9.0 ; 11,08 ; i 1 i MI • SU 997t=0 0979 9174, f RC 100Wr ;t ; 7 , 001 . 0 COI 400 ., at 001 VSER — - • : '1r • ' - • - iv3art E{B.£ , 4.i! L ;LC, 1 OE i 3 40 965 06 •=28 872 * 4.2i KIR 1 _4_ 4 _ _ 4 . let 1 Et0J711 89.0 Ion : 81.C.10002 i _M ,, ; 1_,0_ , _11 ,,; ' IOW 1320 1291 10 ,, 4 •, 10 79.9 1 . J4::1 t . 7 i 1. . 0:71tri 0919 , .171 _, ft= 107 I I OE , ..018 t t 0714_ • MO : ......„ 139 ... , ....,... 1 . ,..... ■ _ , i 7 4 , .,--,...,.... w...:............. _...4..........__ ..4..,, : 9 40 05N7 1 i 1,9 0X . rt, sw i IPr ,' ' :' v". 1 i i , 1 . . ..,...-..1.-2 —...1..- ....—.---_-....- .1.20,, 7 OM , r2n..0t0 a 9 I lett : ten DB • 11.0 1MM,, " • ; LOW ; ■210 1,2 t 02 ; 792 706 : Esa I 90J 0.9.1000, i 0.1 ; 00. . et 477 ' WE tan t O. 1 10 , t 41 ! 111 1a • i it i 9 . 1 . ; IVO t OE • Ito : t St t 49 IV ' ! I I ' ', 1 19 .i 1 . , I 1 ' ' 1 r6 17.9171 3 • JOE t Oa 0101E 1 03 tei 00 t JO . II et t . MO _;0••=971_4__L_____;4011_ CT. ,....._ ■ .,.. 1913 .., .. ,.. t .., ..,.........,.... _ . . .„.. V . 7 ,: *0', . 102 2 0 00! .. 2.0 2' ; . 00 , ,so 1 , C28 ; • IIE 7,2 i tr t0.1 4 -- ., 1 ;- i ' .., *GU,. ■165 990_, le. , _ 9014_ • fai.0 ..87F., I .4 -- i, --,---------- . ..-4----------- 011010. • ' • 9 ' 91 ; tot ■ len cco i t t. I 9 4.7.1 . ! 1 1 • • Itt I ... . • • erE • Cook Inlet Natural Gas � wA� CINGSA STORAGE Well: Cannery Loop #1 s , a` 44 o- A Schlamberper Company Kenai, Alaska Highlights • All casing strings were run and cemented without problems. • All the required mud products were available and delivered to the well site in a timely manner. • There were no HSE incidents attributable to MI SWACO personnel during the drilling of the Cannery Loop #1 well. Lessons Learned and Recommendations • High viscosity sweeps pumped every 400 to 500 feet while drilling the surface hole proved successful with observed increases in cuttings volume of 100% at the shakers. • Citric acid and sodium bicarbonate were used to treat the cement - contaminated Flo -Pro after the used fluid was brought into the pits. The fluid should be treated prior to storage in the future to prevent polymer degradation. • A 4% lubricant concentration in the intermediate interval helped in sliding and kept the torque below 18K. • After reaching TD on the intermediate interval, the bit was back - reamed out of the hole and a separate wiper trip was not performed. Though the casing had to be worked to bottom, it was run successfully. • During the injection interval, while performing short trips, it was successful pumping out of the hole at 350 gpm or less. • Maintainin . 15 to 20 lbs/bbl of SafeCarb 40 acting as backround LCM has resulted in no more than just seepage losses while drilling. Greater losses occurred while circulating during an extended rig repair. Spotting 50 bbl LCM pills healed the losses. F • C ook Inle Na 1uTaas „...- , . . . , ....... ,. ,. _ uiI , � q Y F ' a , ..,,,,....„..,,,,,„.„,..„,„.,,,,,,,,,,,., '-,:':::: I CI NGSA . � ` i,� } :� CLU Storm e 1 g .„,,,,,..,.:.;;.„,,,:..,,,,,,,;„,„;,4":1:-.----A.'4',.%;‘,'. ' ,!:::;.: \ -- 7'.;' , ':,,..' 7 ,,:: '''..:',," ..,':';',. Cannery fi � �r i Kena Pe ninsula, Alaska F }y Rig: Nabors 105E f tae � ,� � , r ., D irectional Drilling Report • f , DDS: C Milchak I M Burns MWD: K Heiden/ C Deloach N Sales Order #: 4 223343 N ov 11 Y Start Date: 26- - r BAKER . • ,. ,‘...„.„„y_ .,, 4 ' . ' .. HUGHES C • O MPLETION REPORT Po ok Inlet Natural: Gas I �rr�E BAKER STOR.AQJM HUGHES Saes order No. 4223343 Page 1 company CINGSA Field Cannery Loop Beginning Date 26- Nov -11 wee matte & No. CLU Storage 1 Rig Nabors 105E Ending Date 12- Dec -11 CONTENTS BHA REPORTS: BHA #1 (Motor Steerable - 8" X -treme w/ NaviTrak MWD 16" Hole) Hari -016W ,.. BHA PERFORMANCE REPORT -treme N V1 1"'s1 [ BHA STRING REPORT Series , .won «rw TOOL DIAGRAM - Run #1 BHA PARAMETERS REPORT BHA #2 (Rotary Steerable - 91/2" AutoTrak w/ OnTrak MWD & Gamma - Resistivity 121/4" hole) P ii9ijiP BHA PERFORMANCE REPORT BHA STRING REPORT iummmta " soma TOOL DIAGRAM - Run #2 BHA PARAMETERS REPORT O11I1( a �q�� BHA #3 (Motor Steerable - 6 314" Ultra Xtreme w/ OnTrak MWD -eme Q ra LithoTrak & MagTrak for 8 1/2" hole) Series UMW MB s.nxr AAwau. tM® roan it, BHA PERFORMANCE REPORT BHA STRING REPORT TOOL DIAGRAM - Run #3 BHA PARAMETERS REPORT DAILY DRILLING REPORTS 26- Nov -11 ttru 12- Dec -11 SURVEY REPORT NaviTrak - OnTrak MW D <206- 9661'> CLU Storage 1 SURVEY FILE mu' NAD27 Coordnates (Separate Se on CD) BIT REPORT FIELD BIT RECORD GRAPHS: ACTUAL vs. PROPOSED DAYS vs. DEPTH ACTIVITY BREAKDOWN • 0 Cook Inlef Ncitural:Gas Frita-11 STORAGI - U ` ., BAKER H HUGHES u Advantage BHA Performanc Reports :, , .. :::::„.„....„ ...„„:, _ ,..:*, Ilt , .,,,,i„„ ' -0,4, „.„, .-' ,,,,, ti z � t � � 4 � �� '� �- � a �� xis � � 4 , `�2�� ..1.11 mot ., �» 57,: d k 1 y` 6 ��gg '{`sue r „e T, e �y a Ai"?:. 9 m • • Milli Cook inlet Natural Gas Advantage BHA Performance Report BAKER HUGHES Operator CINGSA Fields Cannery Loop Location Cook Inlet Hole Size 16 in Well CLU Storage 1 Wellbore CLU Storage 1 Rig lob # 4223343 ASU S/N BHA Description Bit- XtremeMotor- SNMCSDP- Stab -MW D- NMCSDPx3- HWDPx4- Jars-HWDP BHA Run Parameters BHA Run # 1 MTR Run # 1 Distance 2852.00 ft P/U Date 26- Sep-11 15:00 ATK Run 1 MTR Rerun it Avg ROP 167.76 ft /hr L/D Date 28- Nov -11 12:30 ATK Rerun 1 Max Tenip 107.0 degF MWD # 1 MD In 115.00 ft On Btm Circ 17.00 hours Start Drilling 26- Nov -11 15:30 Bit # 1 MD Out 2967.00 ft Off Btm Circ 13.50 hours Sto . Drilli - ■ 27- Nov -11 23:59 String Parameters It Component Mfr S/N Gauge OD ID Fishing Length Total OD Neck Length in in in in ft ft 17 Drill pipe Nabors 5 4.276 0.00 885.88 16 HWDP Nabors 61/2 5 3 61/2 566.58 885.88 15 Jar Daily 1622 -1006 6 3/16 2 3/4 6 1/8 32.07 319.30 14 HWDP Nabors 61/2 5 3 61/2 119.25 287.23 13 Sub - X/O INTEQ AK106 7 3/4 3 1/2 1.58 167.98 12 Drill pipe - compressive INTEQ BHI30062 7 3/4 6 3/4 2 13/16 7 1/4 29.59 166.40 11 Drill pipe - compressive INTEQ 8HI30063 7 3/4 6 3/4 2 13/16 7 1/2 29.24 136.81 10 Drill pipe - compressive INTEQ 8HI30061 7 3/4 6 3/4 2 13/16 7 3/4 29.97 107.57 9 NMSub - X/0 INTEQ ET13755 7 3/4 2 13/16 1.65 77.60 8 NMSub - filter INTEQ 10588735 8 1/4 3 5.57 75.95 7 UP INTEQ 10019039 8 1/4 3 7 7/8 5.01 70.38 6 . MWD - NaviGamma INTEQ ECC805990 8 2 7/8 8 19.11 65.37 5 , NMSub - X/O INTEQ AK249 7 7/8 2 7/8 1.98 46.26 4 NMStab - string INTEQ 6HI30069 15 7/8 8 1/8 2 13/16 4.82 44.28 3 Drill pipe - compressive INTEQ ECC805995 5 2 3/4 7 13/16 9.57 39.46 2 Motor - steerable INTEQ ECO -4568 15 7/8 8 , 5.831 8 28.59 29.89 1 Bit - mill tooth - roller cone HCC 5194403 16 1.30 1.30 I OD 1 B G OR TBR /Run Graded By Grade In 0 0 NO A E I NO Grade Out 1 1 WT A E I _ NO TD 251000 _ C Milchak T 4. MX1 IADC Code 115 TFA 0.9419 in ^2 Jets 16 3x18 Ga .. Len in Stabilization Details Drill Pipe Details Comp Type Ser Shape Blade Blade Gge Gge Gge Drill Grade OD Nom Len 1 # Len Width Len In Out Pipe Wt in in in in in Sect in lb /ft ft 4 Welded BHI30069 Straight 16.00 1 3/4 5.00 15 7/8 15 7/8 17 5 -135 5 19.50 _ 0.00 2 UBHS (Screw -On) ECO -4568 Straight 15.00 2 3.00 15 7/8 15 7/8 BHA Buoyed Wt 55671 Ibf BHA Wt Below Jars 28179 lbf Motor Details Component Details Manufacturer INTEQ Nozzle in /32 Directional (mag) / Bit 50.97 ft Type X -treme w/ SO- BHStab Operating Delta P 1160 psi Gamma / Bit 47.57 ft S/N ECO -4568 No Load Delta P 218 psi Motor Size 8 in Bit To AKO Bend 10.10 ft Tilt Angle 1.30 deg Bit To UBHS 4.30 ft UBHS To Stator Stab ft PDM Gas In Out 0.13 0.13 in Geology Fluid Parameters Forniation Top MD Top TVD Description Mud Type Water Based Mud ft ft Mud Weight 9.2 ppg PV 12 cP YP 15 Ibf / 10Oft^ 2 Gels 5/18 Ibf/ 100ft ^ 2 % Sand 0.50 96 % Solids 6.00 96 Survey Update Inc In Inc Out Azi In Azi Out Max TVD Max DLS Plan DLS Range deg deg deg deg ft deg /100ft deg /IOOft 0.42 57.50 221.64 242.79 2648.42 3.00 0.1*t_ 4.14 Drilling Parameters Mode Dist. Time Avg WOB Surf On On Btm Off Btm Flow SPP Avg ROP Btm Torq Torq Diff ft hours ft /hr Ibf RPM RPM ft.lb ft.lb USgal /min psi psi Rotate 1502.00 8.80 170.68 0/75 0 /5000 0/4000 188 Orientate 1350.00 8.20 164.63 202 Off Btu) Circ 13.50 Total 2852.00 30.50 167.76 5000/20000 0/75 0/212 0 /5000 0/4000 610 1900 194 • oak ' °l` °'u'°' Advantage BHA Performance Report oR �,� . ;� ` 9 P NtKi�NES Operator CINGSA Fields Cannery Loop Location Cook Inlet Hole Size 16 in Well CLU Storage 1 Wellbore CLU Storage 1 Rig Job # 4223343 ASU S/N BHA Objective Drill 16" vertical hole to KOP 0 1000'. Kick off well buildi r . a .le to 58° @ 3 °/100' alon. 242° azimuth. BHA Performance / Observations BHA performed exceptionally well overall. Had no problems getting the required build rates to meet the plan. The overall average ROP for the entire section was 168 • h slidi • was - . ua as fast as rotati • . All BHI tools worked fine throu . hout the entire run. BHA Conclusions / Recommendations / Remarks No visual damage to any BHA components noticed at surface due to high sand content in mud system. Tools to be sent to Anchorage for tear down and ins. - .ion of • robes. Bit was in excellent sha. - and will be re-run on next well. BHA Reason POOH Reached the 13 -3/8" casin... Directional Drillers M.Bums C.Milchak Cook inlet Noland Gas ®lt it ADV ANTAGE String Report - Run #1 B AKER STORAG,� a� HUGHES Operator CINGSA Fields Cannery Loop Facility Gas Storage Pad Location S9 T5N R11W Well CLU Storage 1 Wellbore CLU Storage 1 Rig Job CLU Storage 1 (4223343) String Components Component S/N Mfr Gauge OD OD ID FN OD EN Len. Thread Length T`etal #t in in in in ft ft ft 17 Drill pipe Nabors 5 4.276 (BP) 4 1/2 IF - 4 1/2 IF 0.00 885.88 16 HWDP x 19 Nabors 6 1/2 5 3 6 1/2 (BP) 4 1/2 IF - 4 1/2 IF 566.58 885.88 IS Jar > 1622 -1006 Daily 6 3/16 2 3/4 6 1/8 1.63 (8P) 4 1/2 IF -4 1/2 IF 32.07 319.30 14 HWDP x 4 Nabors 6 1/2 5 3 6 1/2 (BP) 4 1/2 IF - 4 1/2 IF 119.25 287.23 . ,.,a 3m, 23 Sub - X /O' ' � w AK106 a INTEQ . a ' , ,r 7 3/4 3 1/2 (BP) 4 1/2 IF - 6 5/81490 1.58 167.98 12 Drill pipe - compressive BHI30062 INTEQ 7 1/4 6 3/4 2 13/16 7 1/4 3.02 (BP) 6 5/8 1490 - 6 5/8 H90 29.59 166.40 11 Drill pipe - compressive 61130063 ' INTEQ .g `i�i 7 1/2 6 3/4 2 13/16 7 1/2 3.22 (BP) 6 5/8 1190 - 6 5/8 1490 29,24 136.81 10 Drill pipe - compressive BHI30061 INTEQ 7 3/4 6 3/4 2 13/16 7 3/4 3.00 (BP) 6 5/81490 - 6 5/81-190 29.97 107.5 9 NM Sub - X/O � ET13755 INTE z� ' . 7 3/4 2 13/16 (BP) 6 5/81490 - - 6 5/8 Reg 1.65 77. 8 NM Sub - filter 10588735 INTEQ 8 1/4 3 (BP) 6 5/8 Reg - 6 5/8 Reg 5.57 75.95 7 UP 10019039 INTEQ % a . 8 1/4 3 7 7/8 2.13 (BP) 6 5/8 Reg - 6 5/8 Reg 5.01 70.38 6 MWD - NaviGamma ECC805990 INTEQ 8 2 7/8 8 (BP) 6 5/8 Reg - 6 5/8 Reg 19.11 65.37 5 NM Sub - X/O , z AK249 INTEQ .:S ,_...., 7 7/8 2 7/8 (BP) 6 5/8 Reg - 6 S/8 H90 1.98 46,26 4 NM Stab - string 61230069 INTEQ 15 7/8 8 1/8 2 13/16 (BP) 6 5/8 H90 - 6 5/8 H90 4.82 44.28 3 Drill pipe - compressive ECC805995 INTEQ '" : ` S ' 7 13/16 5 2 3/4 7 13/16 1.80 (BP) 6 5/8 H90 - 6 S/8 1490 9.57 39.46 2 Motor - steerable ECO -4568 INTEQ 15 7/8 8 5.831 8 1.80 (BB) 6 5/8 1490 - 6 5/8 Reg 28.59 29.89 1 Bit - mill tooth - roller cone 5194403 HCC 16 16 6 5/8 Reg P 1.30 1.30 17 String components with a total length of 885.88 ft. Run Details Run • Depth In Depth Out Time In Time Out Total Dist Rotate Distance Slide Distance Buoyed BHA Wt Buoyed Wt below jars ft ft ft ft ft ibf lbf 1 115.00 2967.00 26- Sep-11 15:00 28-Nov-11 12:30 2852.00 1502.00 1350.00 55671 28179 Bit Details Size Type /Mfr Nozzles TEA Gradiltg In MD /TVD Out MD /TVD Progress Time TBR in in /32 in "2 I 0 0 1 B G 0 R ft ft ft hours 16 MX1 / HCC 16,3x18 0.9419 1 1 WT A E I NO TD 115.00/115.00 2967.00/2648.42 2852.00 17.00 25100 Motor Details Size Type/ Mfr S/N Press Rotating Sliding Deflection In psi hours hours deg ' 8 X-treme WI SO- BHStab INTEQ ECO -4568 1160 8.80 8.20 1.30 AKO Drillpipe Details * Size Grade Connection OD Connection ID Act Linear Weight Mom Linear Weight in In in lb /ft lb /ft ' 17 5 S -135 6 5/8 2 3/4 23.89 19.50 Stabilizer Details Camp_ Description Distance to Bit Spiral Type Blade Type Blade OD Blade Length Blade Width 0 ft in in in 4 Stab - string 41.36S Straight Welded IS 7/8 16.00 1 3/4 2 Motor - steerable 4.3 Straight UBHS (Screw-On) IS 7/8 _ 15.00 2 Page 1 8" NaviGamma Client: CINGSA Rig: Nabors 105 " ell: CLU Storage 1 BHI Run #: 1 Tool S/N: 11824682 Hole Section: 16" SCRIBELINE CORRECTION Internal Correction 0.00 MWD to Motor 160.0 Connection: 65/8 H90 Total J x-a 1 ET13755 1.65 1 Fitter Sub 1 10588735 5.5'r PAA 10019039 LQi Offset 14.4 Monel 33.32 ECC805990 1911 DAS DIRECTIONAL MEASUREMENT POINT 11 824682 ■ 1 SGM Gamma Measure Point 10582602 I • Offset: 6.69 j / 1 Ofd 329 1.98 X,0 AK249 Connection: 6 5/8 H90 Distance to Bit: 44.28 Tool Sub Offsets Modular Connection Component S. N Length Sub Bit Stze Torque xiO ET13755 1.65 - - Filter Sub 10588735 5.57 1 - A WA PAA 10019039 5.01 - Non -Mod Connection Directional 11824682 19.11 6.6y 50.97 Size Torque Gamma 10582602 3.29 47.57 6 518 H90 45k ft -Ibs X AK249 1.98 - - NOTE Offsets are measured from the bottom of the XO sL Atl *Nits are n feet Diagram not to scale MWD Flow Range 350.850 Cook Inlet tlaine S II vpitI STORa , P . , Advantage BHA Performance Report BAKER HUGHES Operator CINGSA Fields Cannery Loop Location Cook Inlet Hole Size 12 1/4 in Well CLU Storage 1 Wellbore CLU Storage 1 Rig Nabors 105E lob # 4223343 ASU S/N 11732467 BHA Description Bit - ATK - Stab X0 W D MCSDPx3 - H W DPx4 - H W D Px 19 BHA Run Parameters BHA Run # 2 MTR Run # Distance 4606.00 ft P/U Date 01- Dec -11 00:30 ATK Run * 1 MTR Rerun * Avg ROP 132.74 ft /hr LID Date 04-Dec -11 18:30 ATK Rerun # Max Temp 118.0 degF MWD # 2 MD In 2967.00 ft On Btm Circ 34.70 hours Start Drilling 01- Dec -11 05:00 Bit # 2 MD Out 7573.00 ft Off Btm Circ 28.10 hours Sto. Drillin• 03- Dec -11 23:00 String Parameters # Component Mfr S/N Gauge DD ID Fishing Length Total n Neck Length In i in in ft ft 18 Drill pipe Nabors 5 4.276 0.00 879.22 17 HWDP Nabors 61/2 5 3 61/2 566.58 879.22 16 Jar Daily 1622 -1006 6 3/16 2 11/16 6 1/8 32.07 312.64 15 HWDP Nabors 61/2 5 3 61/2 119.25 280.57 14 NMSub - X/O INTEQ AK106 7 3/4 2 13/16 1.58 161.32 13 Drill pipe - compressive INTEQ B11130063 7 3/4 6 3/4 2 7/8 7 1/2 29.24 159.74 12 Drill pipe - compressive INTEQ BHI30062 7 3/4 6 3/4 2 7/8 7 1/4 29.59 130.50 11 Drill pipe - compressive INTEQ BH130061 7 3/4 6 3/4 2 7/8 7 3/4 , 29.97 100.91 10 NMSub - X/O INTEQ ET1 -3727 7 3/4 2 7/8 2.76 70.94 9 NMSub - filter 1NTEQ 10588736 8 1/8 2 13/16 5.44 68.18 8 MWD - sub - stop INTEQ 10142534 8 1/4 2 7/8 1.81 62.74 7 BCPM INTEQ 10198670 81/4 2.480 81/4 11.13 60.93 6 MWD - stab - mod INTEQ 10331905 12 1/8 8 1/4 2.480 8 1/4 5.85 49.80 5 OnTrak - MWD INTEQ 11871965 8 1/4 2.480 8 3/8 18.94 43.95 4 NMSub - X/O - mod INTEQ 10178902 9 1/2 2.480 8 1/4 , 3.42 25.01 3 Flex sub w/ Stab INTEQ 11704920 12 1/8 9 1/2 2.480 9 1/2 11.97 21.59 2 ATK Steerable Stab INTEQ 11732467 12 1/4 9 1/2 2.480 9 1/2 8.28 9.62 1 Bit - PDC - fixed cutter HCC 7131957 12 1 4 1.34 1.34 Bit Parameters I 0 D L B G O R TBR /Run Graded By Grade In 0 0 NO A X I NO Grade Out 1 1 WT A X I NO _ TI) 270660 C Milchak T p • D505XX IADC Code M223 TFA 0.8836 in ^2 Jets 8x12 Gan. a Len 3.00 in Stabilization Details Drill Pipe Details Comp Type Ser Shape Blade Blade Gge Gge Gge Drill Grade OD Nom Len # * Len Width Len In Out Pipe Wt in in in in in Sect in lb /ft ft 6 Integral 10331905 Spiral 13.50 5 8.00 121/8 121/8 18 5-135 5 19.50 0.00 3 Integral 11704920 Spiral 17.00 4 3/8 6.00 12 1/8 12 1/8 BHA Buoyed Wt 58489 lbf BHA Wt Below Jars 31008 lbf Motor Details Component Details Manufacturer Nozzle in /32 Directional (mag) / Bit 38.49 ft Type Operating Delta P psi Resistivity / Bit 31.70 ft S/N No Load Delta P psi Ann. Pressure / Bit 27.07 ft Motor Size in Bit To AKO Bend ft Gamma / Bit 26.32 ft Tilt Angle deg Bit To UBHS ft Near Bit Inclination / Bit 5.24 ft UBHS To Stator Stab ft PDM Ga + In / Out / in Geology Fluid Parameters Formation Top MD Top TVD Description Mud Type Water Based Mud ft ft Mud Weight 9.3 ppg PV 12 cP YP 19 Ibf /100ft ^2 Gels 10 /13 Ibf/ 100ft ^2 % Sand 0.25 •12 % Solids 7.00 % Survey Update Inc In Inc Out Azi In Azi Out MaxTVD Max DLS Plan DLS Range deg deg deg deg ft deg /lOOft degf100ft 56.42 79.64 243.89 334.19 4933.99 5.00 0.06/6.67 Drilling Parameters Mode Dist. Time Avg WOB ` Surf On On Btm Off Btm Flow SPP Avg ROP Btm Tore Torq Diff _ ft hours ft /hr lbf RPM RPM ft.lb ft.lb USgal /min psi psi Hold 4586.00 34.50 132.93 Steer 0.00 0.00 0.00 Ribs Off 20.00 0.20 100.00 Orient Circ 0.00 Off Btm Circ 28.10 Total 4606.00 62.80 132.74 5000/12000 60/130 60/130 6000 /20000 6000/18000 _ 600 1800 TORA °' "`°l Advantage BHA Performance Report BAKER HUGHES Operator CINGSA Fields Cannery Loop Location Cook Inlet Hole Size 12 1/4 in Well CLU Storage 1 Wellbore CLU Storage 1 Rig Nabors 105E lob # 4223343 ASU S/N 11732467 BHA Objective Drill 12 -1/4" intermediate hole section utilizing a 9 -1/2" AutoTrack rotary steerabte system. Drill a tangent section to 5775', then make a final curve while buiidi • a de to 80° & Cumin. the azimuth to 340° at a rate of 5° 100' until the 9 -5 8" casin. is reached n 7643' and 4937 tvd BHA Performance / Observations BHA performed very well overall as expected. The overall average penetration rate was 133 fph over the entire interval. The walk rate initially required much higher walk force than the theoretical to get +5° /100' walk rates. As past experience has shown, it required over compensating at the beginning of the turn section to get the required turn rates initially, and immediately backing off once the higher results are noticed. The 9 -5/8" casing point was called 70' early, therefore the curve will be completed in the 8 -1/2" section with the motor as a result. All geologic objectives were met. The AutoTrak and OnTrak tools ormed . No real time data or an downlinks missed. There were no oblems backreami out of the the hole. No wi. - tn. was made. BHA Conclusions / Recommendations / Remarks It always recommended to make a dedicated wiper trip to assure the hole is properly cleaned, the mud is well conditioned, and the wellbore is free of any potential obstructions prior to running a string of casing. It is also recommended to always circulate a bottoms up prior to pulling out of the hole to assure that any gas in the well has been circulated out to avoid a potential well control issue while tripping pipe. The bit came out of the hole in great shape, in gauge, and with no visual signs of any damage. The bit end of the AutoTrak steering unit fell about 3' while removi it out of the .i. - shed. No visual s ".rts of an dam.. - were noticed. The tool is to bein. sent back to BHI for ins. - ion. BHA Reason POOH ' . 12 - - - -" on total .. 9th. Directional Drillers M.Bums, C.Mik:hak Cook Wel Nature) Gas fait§ STORAQE_P % ADVANTAGE String Report - Run #2 BAKER HUGHES Operator CINGSA Fields Cannery Loop Facility Gas Storage Pad Location S9 T5N R11W Well CLU Storage 1 Wellbore CLU Storage 1 Rig Nabors 105E lob CLU Storage 1 (4223343) String Components Component S/N Mfr Gauge OD ID FN OD FN Len. Thread Total Length OD Len * in in in in ft ft ft 18 Drill pipe Nabors 5 4.276 (BP) 4 1/2 IF - 4 1/2 IF 0.00 879.22 17 HWDP x 19 Nabors 6 1/2 5 3 6 1/2 3.00 (BP) 4 1/2 IF - 4 1/2 IF 566.58 879.22 16 Jar 1622-1006 Daily 6 3/16 2 11/16 6 1/8 1.69 (BP) 4 1/2 IF - 4 1/2 IF %i -- 32.07 312.64 15 HWDP x 4 Nabors 6 1/2 5 3 6 1/2 3.00 (BP) 4 1/2 IF - 4 1/2 IF 119.25 280.57 14 NM Sub - X/0 ° '".7`" A t' , 4 s , AK106 INTE 579:":7::., 7 3/4 2 13/16 (BP) 6 5/8 Reg - 6 5/8 H90 1.58 161.32 13 Drill pipe - compressive 811130063 INTEQ 7 1/2 6 3/4 2 7/8 7 1/2 3.22 (BP) 6 5/8 H90 - 6 5/81190 29.24 159.74 12 Drill pipe - compressive -- BHI30062 INTEQ r,' ° ' ' ' 7 1/4 6 3/4 2 7/8 7 1/4 3.02 (BP) 6 5/8 1190 - 6 5/81190 29.59 130. 11 Drill pipe - compressive 811130061 INTEQ 7 3/4 6 3/4 2 7/8 7 3/4 3.00 (BP) 6 5/8 1190 - 6 5/8 H90 29.97 100.4 10 NM Sub - X/0 ET1-3727 INTEQ ::',-`,. , .''r 7 3/4 2 7/8 (BP) 6 5/8 H90 - 6 5/8 Reg 2.76 70.94 9 NM Sub - filter 10588736 INTEQ 8 1/8 2 13/16 (BP) 6 5/8 Reg - 6 5/8 Reg 5.44 68.18 8 NM MWD - sub - stop :::::-. 10142534 INTEQ 8 1/4 2 7/8 (BP) 6 5/8 Reg - BM T2 1.81 62.74 7 BCPM 10198670 INTEQ 8 1/4 2.480 8 1/4 3.00 (BP) BliI T2 -8111 T2 11.13 60.93 6 MWD - stab - mod \ ''- 10331905 -.ok INTEQ :40'; + ,,-„ w ola t 1 1/8 8 1/4 2.480 8 1/4 1.65 (BP) BHT T2 - Mit T2 7 5.85 49.80 5 OnTrak - MWD 11871965 INTEQ , 8 1/4 2,480 8 3/8 1.90 (BP) BM T2 - BHI T2 18.94 43.95 4 NM Sub - X/0 - mod ,,; .,111 . 127 - 10178902 INTEQ IVettity!A t. 9 1/2 2.480 8 1/4 1.94 (BP) 8" T2 - 9 ve T2 L 3.42 25.01 3 Flex sub w/ Stab 11704920 INTEQ 12 1/8 9 1/2 2.480 9 1/2 1.65 (BP) BHI T2 - B118 T2 11.97 ,,, 11.97 21.59 2 ATK Steerable Stab 11732467 INTEQ 12 1/4 9 1/2 2.480 9 1/2 1.20 (BB) BM T2 - 6 5/8 Reg „..4. ' 8.28 9.62 1 Bit - PDC - fixed cutter 7131957 HCC 12 1/4 12 1/4 6 5/8 Reg P 1.34 1.34 18 String components with a total length of 879.22 ft. Run Details Run # Depth In Depth Out time In Time Out Total Dist Hold Dist Steering Dist Ribs-Off Dist Buoyed BHA Wt Buoyed Wt below jars ft ft ft ft ft ft Ibf lbf 2 2967.00 7573.00 01-Dec-11 00:30 04-Dec-11 18:30 4606.00 4586.00 0.00 20.00 58489 31008 Bit Details Size Type/Mfr Nozzles TFA Grading In MD/TVD Out MD/TVD Progress Time TBR in in/32 in^2 I 0 0 1 13 G 0 R ft ft ft hours 12 1/4 QD505XX / HCC 8x12 0.8836 1 1 WT A X I NO TD 2967.00/2649.01 7573.00/4933.99 4606.00 34.70 270660 Drilipipe Details * Size Grade connection OD Connection ID Act Linear Weight Nom Linear Weight in in in lb/ft lb/ft 18 5 S 6 5/8 2 3/4 23.89 19.50 Stabilizer Details Comp. Description Distance to Bit Spiral Type Blade Type Blade OD Blade Length Blade Width * ft in in in 6 MWD - stab - mod 44.9 Spiral Integral 12 1/8 13.50 5 3 Flex sub w/ Stab 12.92 Spiral Integral 12 1/8 17.00 4 3/8 Page 1 9 1/2" .3 AutoTrak / 8 1/4" On lk Client: CINGSA Rig: Nabors 105 Well: CLU Storage #1 BHI Run #: 2 Tool sin: 11871965 Section: 12 1/4" Hole 6 5/8 Reg 1 Stop Sub 1.811 Components Serial number Length Weight 8 1/4" T2 (ft) (Ibs) Stop Sub 10142534 1.81 200 BCPM 10198670 11.13 2205 i I BCPM 11.131 Mod Stab 10331905 5.85 521 8 1/4" T2 OnTrak 11871965 18.94 3405 r/' Mod X 10178902 3.42 230 �>l�� Mod Stab 5.851 c FlexStab 11704920 11.97 2875 ‘r. ASS 11732467 8.28 3635 8 1/4" T2 II c Flow range: 400/475 -670 gpm ° II ,Memory OnTrak: _ 484 circ hours o C Total length of tool: 61.40 ft n r 1 OnTrak 18.941 2 Total weight of tool: estimated 13071 lbs lmu 4 OD of tool: 9 1/2" / 8 1 /4" _ j 1 - AutoTrak Mod. Stab size /offset bit: 12 1/8 66.61 ft 4 mon AutoTrak Flex Stab size/offset bit: 12 1/8 12.90 ft ; � iut1 Bit Length 1.34 ft i� lint From bottom of ipiil Sensor offsets the sub From the bit 3 ill 1. Near Bit Inc 3.90 ft 5.24 ft 2 2. Gamma 1.31 ft 26.32 ft ig OnTrak Dump Port 3. ECD 2.06 ft 27.07 ft 8 1/4" T2 I 4. Resistivity 6.69 ft 31.70 ft 5. Directional 13.48 ft 38.49 ft 9 1/2° T2 II ( Mod X/O 3.421 Torques ktbf -ft kNm 1 9 1/2" T2 67.0 90.0 8 1/4" T2 44.0 59.7 1 FlexStab 11.971 6 5/8" Reg 47.0 63.7 9 1/2" T2 s; A_ ill in 'ASS 8.28 1 Iv irio Cook items! Nalvtal Gas • 4 Milli sroRACp, ;_,- , Advantage BHA Performance Report BAKER HUGHES Operator CINGSA Fields Cannery Loop Location Cook Inlet Hole Size 8 1/2 in Well CLU Storage 1 Welibore CLU Storage 1 Rig Nabors 105E lob # 4223343 ASU S/N BHA Description Bit -UXT Motor- SNMCSDP - NMStab -Otk MWD- Ltk- Mtk- NMCSDPx4- CircSb BHA Run Parameters BHA Run * 3 MTR Run * 2 Distance 2088.00 ft P/U Date 07- Dec -11 01:00 ATK Run * MTR Rerun it Avg ROP 67.79 ft/hr LjD Date 11- Dec -11 08:00 ATK Rerun it Max Temp 118.0 degF MWD if 3 MD In 7573.00 ft On Btm Circ 30.80 hours Start Drilling 07- Dec -11 19:00 Bit * 3 MD Out 9661.00 ft Off Btm Circ 35.10 hours Sto Drillin. 10- Dec -11 10:30 String Parameters it Component Mfr S/N Gauge OD ID Fishing Length Total OD Neck Length in in in in ft ft 27 Drill pipe Nabors 5 4.276 0.00 982.18 26 HWDP Nabors 61/2 5 3 61/2 566.58 982.18 25 Jar Daily 1622 -0106 61/4 21/4 61/4 32.07 415.60 24 HWDP Nabors 61/2 5 3 61/2 119.25 383.53 23 Sub - circulation MI -Swaco ) B2000233 7 3 1/2 7 12.83 264.28 22 Sub - X/O INTEQ EW15214 6 3/8 2 7/8 1.70 251.45 21 Drill pipe - compressive INTEQ BH118404 8 1/16 5 2 7/8 6 3/8 30.00 249.75 20 Drill pipe - compressive INTEQ ECC645220 8 1/16 5 2 7/8 6 5/16 29.26 219.75 19 Drill pipe - compressive INTEQ ZDRL18408 8 1/16 5 2 13/16 6 3/8 30.15 190.49 18 Drill pipe - compressive INTEQ BHI30065 8 1/16 5 2 7/8 6 9/16 30.34 160.34 17 NMSub - X/0 INTEQ AK260 6 3/4 2 13/16 2.03 130.00 16 NMSub - filter INTEQ 10560249 6 7/8 2 13/16 5.29 127.97 15 NMSub - stop INTEQ 11878598 7 2 1/2 2.45 122.68 14 MagTrak Stab INTEQ 10157405 8 3/8 7 2 1/4 5.69 120.23 13 MagTrak Sensor INTEQ 10300872 63/4 1.535 18.16 114.54 12 MagTrak Stab INTEQ 1057406 8 3/8 7 2 1/4 5.69 96.38 11 CCN INTEQ 10367569 8 3/8 6 3/4 2.264 6 3/4 6.89 90.69 10 ORD INTEQ 10506931 8 3/8 6 3/4 1 7/8 6 3/4 9.39 83.80 9 BCPM INTEQ 10452112 7 2 1/2 7 10.61 74.41 8 MWD - stab - mod INTEQ 10072681 8 3/8 7 2 1/2 7 3.94 63.80 7 OnTrak - MWD INTEQ 11851489 7 2 1/2 7 16.84 59.86 6 NMSub - stop INTEQ 10169283 7 2 1/2 1.76 43.02 5 NMSub - X/0 INTEQ AK224 6 3/4 2 3/4 2.84 41.26 4 NMStab - string INTEQ EW13090 8 3/8 6 1/4 2 13/16 6 1/4 5.05 38.42 3 Drill pipe - compressive INTEQ EWC804096 8 1/16 5 2 13/16 6 3/4 9.20 33.37 2 Motor - steerable INTEQ M2 -111 8 3/8 6.791 4.772 6 3/4 23.10 24.17 1 Bt- PDC - fixed outer HCC 7114328 8 1 2 1.07 1.07 Bit Parameters I 0 D 1 II G 0 R TBR/ [un Graded By Grade In 0 0 NO A X I NO Grade Out 1 1 CT G X 1 WT TD 373056 C Milchak T , s D503ZX IADC Code M123 TFA 0.8399 in Jets 3x13 3x14 Ga .e Len 3.50 in Stabilization Details Drill Ape Details Comp Type Ser Shape Blade Blade Gee Gge Gee Drill Grade OD Nom Len $ * Len Width Liar In Out Pipe Wt in in hs in hr Sect in % /ft ft 14 Sleeve 10157405 Straight 8 3/8 8 3/8 27 S -135 5 19.50 0.00 12 Sleeve 1057406 Straight 8 3/8 8 3/8 BHA Buoyed Wt 58373 lbf 11 Sleeve 10422440 Spiral 10.50 3 3/8 10.25 8 3/8 8 3/8 BHA Wt Below Jars 30891 ibf 10 Sleeve 10222996 Spiral 14.00 2 3/8 11.50 8 3/8 8 3/8 8 Integral 10072681 Spiral 12.00 3 3/8 6.00 8 3/8 8 3/8 4 Welded EW13090 Straight 14.50 2 11.50 8 3/8 8 3/8 2 UBHS (Screw -On) 142 -111 Straight 12.00 2 5.00 83/8 83/8 Motor Details Component Details Manufacturer INTEQ Nozzle in/32 Magnetic Resonance / Bit 100.64 ft Type Ultra X -treme w/ SO- BHStab Operating Delta P 1305 psi Porosity / Bit 88.18 ft S/N M2 -111 No Load Delta P 348 psi Caliper / Bit 80.94 ft Motor Size 6.791 in Bit To AKO Bend 7.97 ft Density / Bit 78.80 ft Tilt Angle 1.00 deg Bit To UBHS 3.42 ft Directional (magi / Bit 55.03 ft UBHS To Stator Stab ft PDM Gap In / Out 0.06 / 0.13 is Resistivity / Bit 49.22 ft Gamma / Bit 45.19 ft Ann. Pressure Bit 44.30 ft Geology Fluid Parameters formation Top MD Top IVD Description Mud Type Water Based Mud ft ft Mud weight 9.3 ppg PV 16 cP VP 16 ibf /100ft "2 Gels 10/16 Ibf/ 100ft^ 2 M Sand 0.10 % % Solids 9.00 IN Survey Update Inc In Inc Out Azi In Azi Out Max TVD Max DLS Plan DL5 Range deg deg deg deg ft deg /100ft deg /100ft 80.58 85.85 334.21 335.74 516443 2.00 0.17 4.25 Drilling Parameters Mode Dist. Time Avg WOB Surf On On Btm Off Btm Flow SPP Avg ROP Btm Tore Torq Diff ft hours ft/hr Ibf RPM RPM Nib ft.lb USgal /min psi psi Rotate 1845.00 26.90 68.59 0 /100 0 /15000 0/14000 145 Orientate 243.00 3.90 62.31 150 Off Btm Circ 35.10 Total 2088.00 _ 65.90 67.79 1200(12000 0 /100 124/232 0/15000 0/14000 400 1800 _ 146 . TO RA °' E Advantage BHA Performance Report BAKER HUGHES Operator CINGSA Fields Cannery Loop Location Cook Inlet Hole Size 8 1/2 in Well QM Storage 1 Wellbore CLU Storage 1 Rig Nabors 105E lob it 4223343 ASU S/N BHA Objective Drill e. log 8 -112" tangent hole sect on 0 84.5* angle along 335.5° azimuth to 8472', then build angle to 85.91° 0 a rate of 1.27 ° /100'. Continue drilling ahead until TD is reached 0 9807' and 5166' tvd . BHA Performance / Observations BHA performed very well overall from a directional standpoint. The entire section was control) drilled at a maximum penetration rate of 80' /hr to maximize the MagTrak data resolution. Had no problems geosteering to meet the geologist objectives. The directional plan was altered throughout the entire hole section, making corrections to the revis ons were never a problem. The azimuth drilled vent straight while rotating, and the assembly was extremely sensitive to building and dropping angle variating the surface RPM speed. The bit was steerable friendly and it drilled equally as fast si ding as while rotating. One wiper trip was made while badcreaming to the casing shoe w thout incident. The final 7D was called short due to the potential of enterim the lower Bel • a formation. The final trip out of the hole was backreamed while workin • throu. h multi • le C. ht s. ots. BHA Conclusions / Recommendations / Remarks Recommend running the same assembly configuration w th the same bit style on the remaining well to follow. Also recommend making a dedicated wiper trip back to bottom to check the actual condition of the hole w thaut pumping. Bit had damaged cutters on the gauge rows & 1116 out of gauge, just as it d d on the previous two wells. We prey Dusty recommended drillin • out the shoe trade slick to avoid this problem. This ind cater that the hole may be drilled 1/16' under • auge. BHA Reason POOH Reached total • of the hole. - • • .y called TO short 146' md. R • u. & run CBL. Directional Drillers M.Bums C.Milchak SoaElnlelNninral:C,rr• ADVANTA String Report - Run #3 BAKER Pall „ S TC RA HUGHES Operator CINGSA Fields Cannery Loop Facility Gas Storage Pad Location 59 T5N R11W Well CLU Storage 1 Wellbore CLU Storage 1 Rig Nabors 105E lob CLU Storage 1 (4223343) String Components Component S/N Mfr GOU a OD ID FN OD FN Len. Thread Length T�etal ft in in in in ft ft ft 27 Drill pipe Nabors 5 4.276 (BP) 4 1/2 IF - 4 1/2 IF 0.00 982.18 26 HWDP x 19 Nabors 6 1/2 5 3 6 1/2 (BP) 4 1/2 IF - 4 1/2 IF 566.58 982.18 25 Jar . w w .. 16220106 Daily :: , , t 6 1/4 2 1/4 6 1/4 1.70 (BP) 4 1/2 IF - 4 1/2 IF 32.07 415.60 24 HWDP x 4 Nabors 6 1/2 5 3 6 1/2 (BP) 4 1/2 IF - 4 1/2 IF 119.25 383.53 23 Sub - circulation z� 82000233 : MI-Swann ��y€ 7 3 1/2 7 2.30 (BP) 4 1/2 IF - 41/2 IF 12.83 264.28 22 Sub - X/0 EW15214 INTEQ 6 3/8 2 7/8 (BP) 4 1/2 IF - 4 1/2 H90 1.70 251.45 21 Drill pipe - compressive BHI18404 INTEQ ! 7: 6 3/8 5 2 7/8 6 3/8 2.20 (BP) 4 1/2 H90 - 4 1/2 H90 30.00 249.75 20 Drill pipe - compressive ECC645220 INTEQ 6 5/16 5 2 7/8 6 5/16 1.97 (BP) 4 1/2 1190 - 4 1/2 H90 29.26 219. 19 Drill pipe - compressive .,A;:le ZDRL18408 INTEQ . q 6 3/8 5 2 13/16 6 3/8 2.20 (BP) 4 1/2 H90 - 4 1/2 H90 ;fie 30.15 190, 18 Drill pipe - compressive BHI30065 INTEQ 6 9/16 5 2 7/8 6 9/16 1.95 (BP) 4 1/2 H90 - 4 1/2 H90 30.34 160.34 17 NM Sub - X/0 AK260 INTEQ 6 3/4 2 13/16 (BP) 4 1/2 H90 - 4 1/2 IF 1 2.03 130.00 16 NM Sub - filter 10560249 INTEQ 6 7/8 2 13/16 (BP) 4 1/2 IF - 4 1/2 IF 5.29 127.97 15 NM Sub stop 11878598 - INTEQ 7 2 1/2 (BP) 4 1/2 IF - BHI T2 2.45 122.68 14 MagTrak Stab 10157405 INTEQ 8 3/8 7 2 1/4 (BP) BHI T2 - BHI T2 5.69 120.23 13 MagTrak Sensor ; 10300872 ir : INTEQ ZE ,y . , 6 3/4 1.535 (BP) BM T2 - Mil T2 T 18.16 114.54 12 MagTrak Stab 1057406 INTEQ 8 3/8 7 2 1/4 (BP) BHI T2 - BHI T 5.69 96.38 a va ` 11 CCN kx� 10367569 INTEQ �� 8 3/8 6 3/4 2.264 6 3/4 2.30 (BP) BHI T2 - BHI T2 T 4 6.89 90.69 10 ORD 10506931 INTEQ 8 3/8 6 3/4 1 7/8 6 3/4 200 (BP) BHI T2 - BHI T2 9.39 83.80 9 BCPM 10452112 INTEQ . 04 ' , 7 2 1/2 7 3.00 (BP) BHI T2 - BHI T2 10.61 74.41 8 MWD - stab - mod 10072681 INTEQ 8 3/8 7 2 1/2 7 1.84 (BP) BHI T2 - BHI T2 3.94 63.80 7 OnTrak MWD ni 11851489 INTEQ w 7 2 1/2 7 1.45 (BP) BHI T2 - 681 T2 16.84 59.86 6 NM Sub - stop 10169283 INTEQ 7 2 1/2 (BP) BHI T2 - 4 1/2 IF 1.76 43.02 -, ` ` 6 3/4 2 3/4 (BP) 4 1/2 IF 4 1/2 H90 2.84 41.26 5 NM Sub X/O AK224 INTEQ. 4 NM Stab - string EW13090 INTEQ 8 3/8 6 1/4 2 13/16 6 1/4 2.32 (BP) 4 1/2 H90 - 4 1/2 H90 5.05 38.42 3 Drill pipe - compressive '11 EWC804096 INTEQ I 6 3/4 5 2 13/16 6 3/4 2.23 (BP) 4 1/21190 - 4 1/2 H90 9.20 33.37 2 Motor - steerable M2 -111 INTEQ 8 3/8 6.791 4.772 6 3/4 1.71 (BB) 4 1/2 H90 - 4 1/2 Reg 23.10 24.1 1 Bit - PDC - fixed cutter 7114328 HCC 8 1/2 8 1/2 _ 4 1/2 Reg P 1.07 1. 27 String components with a total length of 982.18 ft. Run Details Run # Depth In Depth Out Time In Time Out Total Dist Rotate Distance Slide Distance Buoyed BHA Wt Buoyed Wt below jars ft ft ft ft ft lbf lbf 3 7573.00 9661.00 07-Dec-11 01:00 11-Dec-11 08:00 2088.00 1845.00 243.00 58373 30891 Bit Details Size Type /Mfr Nozzles TFA Grading In MD /TVD Out MD /TVD Progress Time TBR in in /32 in ^2 I 0 D 1 B G 0 R ft ft ft hours 8 1/2 •0503ZX / HCC 3x13,3x14 0.8399 1 1 CT G X 1 WT TD 7573.00/4933.96 9661.00/5164.43 2088.00 30.80 373056 Motor Details Size Type /Mfr S/N APress Rotating Sliding Deflection in psi hours hours deg 6.791 Ultra X-treme w/ SO-BHStab INTEQ M2-111 1305 26.90 3.90 1.00 AKO Drilipipe Details * Size Grade Connection OD Connection ID Act Linear Weight Nom Linear Weight in in in lb /ft lb /ft 27 5 5-135 6 5/8 2 3/4 23.89 19.50 Stabilizer Details Comp. Description Distance to Bit Spiral Type Blade Type Blade OD Blade Length Blade Width * ft In in in 11 CCN 88.83 Spiral Sleeve 8 3/8 10.50 3 3/8 10 ORD 76.76 Spiral Sleeve 8 3/8 14.00 2 3/8 8 MWD - stab - mod 61 Spiral Integral 8 3/8 12.00 3 3/8 4 Stab - string 35.495 Straight Welded 8 3/8 14.50 2 2 Motor - steerable 3.42 Straight UBHS (Screw -On) 8 3/8 _ 12.00 2 Page 1 4 111 • 6 3/4' OnTrak / LithoTrak / MagTral'c Client: CINGSA Rig: Nabors 105 Well: CLU Storage #1 BHI Run #: 3 Tool S/N: 11851489 Hole Section: 8 1/2" ii_ Components Serial number Length Weight (ft) (ibs) Top Stop 11878598 2.45 160 CCN 6.89 MagTrak 10300872 29.54 3902 i +' Stab OD 8.313 CCN 10367569 6.89 810 d 1 ORD 10506931 9.39 840 b BCPM 10452112 10.61 1130 al Mod Stab 10072681 3.94 650 I ORD 9.39 OnTrak 11851489 16.84 2370 6 �` Stab OD 8.375 Btm Stop 10169283 _ 1.76 160 5 1 Flow range: 330 (395) - 565 gpm ,Memory OnTrak: - 237 circ. hours Total length of tool: 81.42 ft Total weight of tool: 10022 Ibs OD of tool: 6 3/4" Modular Stab size/offset bit: 8 3/8" 1 61.83 ft ( BCPM 10.61 I Length Below LWD Tool (Btm Stop): _ 41.26 ft cv 73 Sensor offsets From bottom of From the bit the sub s 1. ECD 1.28 ft 44.30 ft to 2. Gamma 2.17 ft 45.19 ft 3. Resistivity 6.20 ft 49.22 ft Mod Stab 3 4. Directional 12.01 ft 55.03 ft F Stab OD 8.375 H 5. Density 4.39 ft 78.80 ft 6. Caliper (ono) 6.53 ft 80.94 ft 1 7. Porosity 4.38 ft 88.18 ft 8. MagTrak 9.95 ft 100.64 ft Torques klbf -ft kNm I 6 3/4" T2 29.5 40.0 (Stop Sub 2.451 o ' N LI C46 MOD 22.8 31.0 4 1/2" IF 27.5 37.3 111i 101 li I OnTrak 16.84 I ,J3 - Imo HU IMagTrak 29.541 1111 i:i. 8 . (OnTrak Dump Port 1 • 1 I Btm Stop 1.76 I 1 • Cook Inlef NUIUTULGQS Faii STOMA _ i -(� BAKER QS Q HUGHES WellArchitect Survey Report , .,,,, „..t.41.„ , -t,.' - -,..,,,:::',..:..!:,' , . ' ' m ,,„ , ,„,. ,. .. _;,._.,,,..,,,,,...,,,.,..*,,:.::;:10,1•:,44.1;:4„,:,,,,...,;:4,.,,t..;..,,„1„.....f.i.,.,:„..,,...;,,,,,,,.,,,,..,,,...,iwil,,,,,,,,_. ,:,......:...„.,..,, „.. ..,,.,..,,..4..:_..4.,,,,!,,..:,,,.r.,,..„.,,..f..1,,,.„i1,14,20.,,,.._,:...§.....:2:,,,,,,,,.,..,.:Iti4.!;1,,,,,,,,,;.,..,....4.„::::._,„. . , ....;.0::,„,,...._..,...,:,.; 1:: ...„.....',--.7,-,-,;7'.'--if,;'i--,,-.,:e.,T7i.N.„--,:.-2-2:-:,..:-.,;:,-,3ApNtovrit.,,,,,ei,..,,,,,-,,,,„-.., ..,,,,;- ,,, .,,,, ,,,,,,,.... tiltz ,,,,,,„,,,,,, ,,,,,, AP 4 •••., l s , » e & k i v t a % w 'v .qy :. ems Cook Inlet Natural 'Gas Actual Wellpath Report ViI BAKER STQRA ° '�b' NaviTrak- O MWD <206- 9661'> Page I of s HUGHES REFERENCE WELLPATH IDENTIFICATION Operator CINGSA (Cook Inlet Natural Gas Storage Alaska) Slot Slot #1 Area Cook Inlet, Alaska (Kenai Peninsula) Well CLU Storage 1 Field Cannery Loop Unit (NAD83) Wellbore CLU Storage 1 Facility Gas Storage Pad REPORT SETUP INFORMATION j Projection System NAD83 / TM Alaska SP, Zone 4 (5004), US feet Software System WellArchitect® 3.0.0 North Reference Jonethoh Malliallaill 0.999954 Report Generated 11- Dec -11 at 8:57:30 Convergence at slot 1.06° West Database/Source file WellArchitectDB /CLU_ Storage WELLPATH LOCATION Local coordinates Grid coordinates Geographic coordinates North[ftj Easting(US its , o► ' ng • Latitude Longitude Slot Location 4765.41 8782.50 1421864.77 2392794.42 60 °32'38.916'N 151 °12'50.288 "W Facility Reference Pt 1412992.83 2388198.60 60 °31'52.018 "N 151 °15'45.884 "W Field Reference Pt 1412992.83 2388198.60 60 °31'52.018'N 151 °15'45.884 "W WELLPATH DATUM Calculation method Minimum curvature Nabors 105E (RTE) to Pad Elevation estimated Eafli= Horizontal Reference Pt Slot Nabors 105E (RTE) to Mean Sea Level Vertical Reference Pt Nabors 105E (RTE) Nabors 105E (RTE) to Mud Line at Slot (Slot #1) arMallailliril MD Reference Pt Nabors 105E (RTE) Section Origin N 0.00, E 0.00 ft Field Vertical Reference Mean Sea Level Section Azimuth 281.94° Cook bad Natural:Gas Actual Wellpath Report rill STORAQ. '.,,,-,... as NaviTrak-OnTrak NINVD<206-9661'> BAKER Page 2 of 5 HUGHES REFERENCE WELLPATH IDENTIFICATION Operator CINGSA (Cook Inlet Natural Gas Storage Alaska) Slot Slot #1 Area Cook Inlet, Alaska (Kenai Peninsula) Well CLU Storage 1 Field Cannery Loop Unit (NAD8.3) Wellbore CLU Storage 1 , , „ .. . .. Facility Gas Storage Pad _ . ' LLPATII DATA (102 stations) MD Inclination Azimuth TVD North Grid North Latitude Longitude DLS Build Rate Tura Rate [ft ri ' ft MI its ft •1 I 1 r/100ft r/10061 0.00 0. 221 ' • - 1 0.00 0.00 0.00 0.00 1421864.77 2392794.42 60°32'38.916"N 151°12'50.288"W 0.00 0.11 1 206.00 0.4 1 221. • / 206.00 0.37 -0.56 -0.50 1421864.26 2392793.87 60°3238.911"N 151°12'50.298"W 0.20 0.21 O. 298.00 0. • 1 204.811 297.99 0.65 -1.28 -0.94 1421863.81 2392793.16 60°32'38.904'N 151°1210.307"W 0.28 0.23 -18 383.00 0.931 198.100 382.99 0.83 -2.36 -1.35 , 1421863.38 2392792.09 60°3238.893"N 151°12'50.315"W 0.37 0.35 -7.89 ,:„, ,i ,f2::: ,_ iiii:' Lf. tliftliVMVT:.'O_,.11'. 563.00 0.721 562.98 0.96 -2.26 -1.46 1421863.27 2392792.19 60°32'38.894"N 151°1250.317W 0.65 0.63 28.25 653.00 1.021 22.63$ 652.97 0.77 -0.98 -1.00 1421863.76 2392793.46 60°32'38.907"N 151°1210.308W 035 0.33 7.67 741.00 a 20 a 4 740.95 0.49 0.63 -0.37 1421864.41 2392795.05 60°3218.922"N 151°1210.296"W 0.23 0.23 -2.76 831.00 1 23.9:1 830.93 0.14 2.47 0.38 1421865.19 2392796.88 60°3218.940N 151°12'50281"W 0.14 0.11 4.20 IL:I,' 4 031 “, 1421865.14 2392 i# „ , ,• .,, 1022.00 2. - 1 227.950 1021.89 1.96 1.59 -1.66 1421863.14 2392796.04 60°32'38.932N 151°12'50.321W 1.74 -14.1- 1118.00 3.4 233.111 1117.76 5.01 -1.47 -5.43 1421859.31 2392793,05 60°3238.902N 151°12'50.397"W 1.20 5.2* 1214.00 6.121 238.241 1213.42 10.61 -5.91 -12.10 1421852.57 2392788.74 60°32'3&858"N 151°12'50.530"W 2.81 5. * 1309.00 9. 01 239.240 1307.50 20.15 -12.66 -23.28 1421841.26 2392782.19 60°32'38.791"N 151°12'50.754"W 3.76 • 1.05 "al" *17, i'o NallaTIIIIItrArtitiralMint, ,,,,..- Ic-Ej , el-„,/,, '-*'• S'k 4* :,1, 14 'e .t. 4straidir 609/i8.696 ' ' '''''' \ *:" 1500.00 15." 1 239.821 1493.56 51.60 MEM -60.03 1421804.12 2392761.09 60°3238.577N 151°12'51.488"W airei...ww 0.78 1596.00 18.511 241.051 1585.24 72.93 -48.48 44.79 1421779.10 2392747.52 60°32'38.439"N 151°12'51.983"W 2.65 2.63111111111E 1692.00 20.: • • 241.0:, 1675.61 97.40 -64.13 anal 1421750.50 2392732.39 60°32'38.285"N 151°1252.550N* . : IMO 0.03 . 1788.00 23.3 I 241.811 1764.55 124.88 -81.39 M5nea 1421718.45 2392715.72 60°3238.115"N 151°1253.184"W um 0. AttoT___r-' v'P' . 1980.00 29.011 . : 1, 1937.11 189.75 -120.18 -219.36 1421643.24 2392678.31 60°3217.733N 151°12'54.674"W 3.40 IIIIIIIIIIM 0. Ai 2075.00 32 , 1 241.0 • 2018.85 226.80 -142.96 -262.04 1421600.15 2392656.32 60°3217.508N 151°12'55.527W 3.53 .,, 3. 1 -1.84 2170.00 34.'11 242.1.0 2098.00 266.87 -167.91 -308.26 1421553.48 2392632.24 60°3217.263N 151°1256.451"W 2.87 2...0 1.18 2267.00 37.230 244.100 2176.41 311.38 -193.67 -359.21 1421502.06 2392607.41 60°3217.009N 151 2.67 2. $ 1.97 23 ttraN , ..101,Y1P.t..,.,,„:: , ",',-4 , ; .. .T.:,..0:gr:: - .7_ ,, , 421 , 1 i'r t a'n,010 ' r , ‘i , , .:4:: H1:7'7,,,,w1rci-Jokl,o t c, I ir 2458.00 434: i 244.6 a 2322.05 408.95 -247.45 -470.il 142139 ' 6.00 23 60°32'36.479N 151°1219.691°W 3.31 3.27 0.7* 2553.00 45. • $ 244.1 a 2389.95 461.61 -276.17 -530.21 1421329.58 2392528.09 60°32'36.196N 151°13"06:889' 'W 2.13 2.08 =61. 2649.00 47. • 241.3 : # 2456.22 515.41 -308.01 :591.92 1421267.29 2392497.39 60°32'35.883N 151°13'02.123"W 2.90 2.10 -2.81 2746.00 111.11MOI2 airwre 2519.48 570.71 -343.97 -656.04 1421202.52 2392462.63 60°3215.529N 151°13'03.404"W IMO 4.02111111111g osf,IP'JAL,....*,..$1;241:111.:WittltdmAreilitaiklifinitilktafr '''' ti.L.2",uZtir,UTrl„j,4aiiiitte,r''iaiIliiiathitikfq's'r'":' 4,1 : , '"'''' 11 " '`. '1 'i, ' Gook Intel Natural G►as Actual Wellpath Report Fait. STORA Trak- OnTrak M1WD <206- 9661t> BAILER " fa4 Page 3of HUGHES REFERENCE WELLPATH IDENTIFICATION Operator CINGSA (Cook Inlet Natural Gas Storage Alaska) Slot Slot #1 Cook Inlet, Alaska (Kenai Peninsula) Well CLU Storage I Field Cannery Loop Unit (NAD83) Wellbore CLU Storage 1 Facility Gas Storage Pad ° LLPATH DATA (102 stations) MD Inclination Azisaatlt TYD North Grid East Grid North Latitude DES Build Rate Tura Rate ft [° 11 [ft [ft] 'S ft] [US ft] °noaft °noofta 'n+wR 2914.00 • : + r.+ 2619.24 67237 - 410.00 -773.91 1421083.46 2392398.79 60°32'34.878"N 151 °13'05.761"W 2.3,x 3040.00 56.420 MM :'^ 2689.61 754.05 - 456.89 - 86732 1420989.21 2392353.63 609234.416"N i 151 °13'07.628"W 0.93 0.5' 0. 3135.00 IIIIIEEMMI= 2741.13 816.84 -492.11 -938.94 1420916.96 2392319.74 6092'34.070"N 151 °13'09.060"W amE3 1.55 -0.1. 3232.00 INEEEEE 242.91+ 279232 881.22 -529.10 -1012.56 1420842 67 2392284.12 60°32'33.705"N 151 °13'10.532"W 0.90 0.5 -0 "`"- 1(}84.60 1420769.97 ' 2392248 68 + i , i +'. 3422.00 1111111ftratillit4= 2891.98 1006.74 - 602.97 - 1156.47 1420697.42 2392212.91 60°32'32.978"N [ 15193'13.409"W 0.55 0.+' -0.63 3518.00 IIIIMIIEMEIIEEM 2942.34 1070.07 - 640.42 - 1229.12 1420624.10 2392176.82 60°32'32.609N 151 0 13'14.862"W 0.59 -0.14 0. 3614.00 : ' i • + 2992.78 1133.26 - 677.97 -1301.65 1420550.90 2392140.61 60°32'32.239"N ! 151 °13'16.311"W 0.77 4.4 -0.91 3709.00 amip3maEsm 3042.63 1195.51 -715.60 -1373.23 1420478.63 2392104.30 60°32'31.868"N i 151 °13'17.743"W 0.19 0.13 0.1 , 3901.00 11111M + + +� 3143.05 1321.67 - 791.49 : 1420332.28 2392031.11 60°32'31.121"N 151 °13'20.641"W 0.06 0.0 -0.1. 3997.00 58.470 241. . + 3193.23 1384.37 -829.99 - 1590.44 1420259.36 239199395' 60°32'30.741"N 151 °13'22.085"W 0.71 -0.03 -0.83 409100 58.490 240. ' 324237 1445.12 - 868.54 -1660.69 1420188.42 2391956.70 60°32'30 362"N 151 °1323.489"W 0.54 0.0 -0.64 4187.00 58.450 241.82 673292.57 32�9 1507.28 - 907.74 - 173232 1420115.88 2391918.84 60°32'29.976"N 151 °1324.925 "W 0.78 -0.04 0.92 w s:41)21 , 1 ,' -$a iY i„ �a .. u "��5.: i>« a. i i +e n i - ,a r ' i + �' + a w - ai _� . lids ,?'. 4377.00 Ma= 242.306 3391.88 1631.56 - 983.68 -1875.60 141997I.44 2391845.55 60°32'29.227"N1 151°13'27.785"W 0.25 -0.0 0.29 4472.00 58.. + 241.61+ 3441.43 1693.66 -1021.79 - 1947.13 1419899.21 2391808.77 60°3228.852"Ni 151 °1329.215"W 0.64 0.15 -0.73 4568.00 58.4 • 241.2: + 3491.53 1755.94 - 1060.93 - 2019.06 1419826.58 2391770.97 60°32'28.466"N! 151 °13'30.653"W 035 -0.1 -0. 4663.00 58. I 242.2.' 3541.25 1817.80 - 1099.22 ` - 209038 1419754.57 2391734.00 60°32'28.089"N 151 °13'32.079'W 0.88 -0.01 1.1 `" ` ' s : r �r ............. p e i : . c .... 4 , .. 4855.00 58.48+ sinzmz 3641.71 1943.97 -1175.04 -2235.37 1419608.21 2391660.87 60'3227.342"N 151 °13'34.977"W 0.11 0.+ • 0. ' 4951.00 58.510 242.' . + 3691.88 2007.40 - 230813 1419534.77 2391624.73 60°3226.973"N ; 151°13'36.432"W 0.39 0.03 0. • ..v.__ `7 - 1249.85 2380.97 1419461.26 2391588.77 60°32'26.605" 151 °13'37.88 N; 8"W 0.17 -0.05 -0.1' 5047.00 58.460 242. .•i' 3742.06: 2070.95 - ' 5143.00 58.560! 2 43.280r 3792.20 2134.65 - 1286.98 - 2453.93 1419387.64 2391552.99 60°3226.240"N 151 °13'39.3469W 0.46 0.11 0.52'' ,.,, a as. a �, :: e t f.,,. . - :,,"qq ",....�" "'»`" ii r �_.,''�- '.�,w> _1 . .'.. r:.. , r .,t ,.. ._ ....,. ,.�id t ., v .. s. = „v r �: a, a i -&a a . - 4 + " i P i. 4:a; , a i i °,.,, ^ +. '� i .'1 F @ „£,!'i . ?' h r f TM . 1 `. '°7. ..,: : . i * i ley a,.. . - ,..,....�. ,. ��..:.,.,.,�� .�._. . . 1 3 , ,. .- ....<..v....... .._mom. .�.�,,.:.. _ .. : i i � ._. ` 5334.00 58.110 243.110 3892.21 2261.56 - 136038 -2599.16 1419241.08 2391482.29 60°3225.516 "N ; 151 °13'422 -0 49 "W 0.44 -0.43 0 5429.00 58.1.+ 242. • + 3942.39 -136038 - 139727 2670.89 1419168.68 2391446.73 60°32'25.153"N 151 °13'43.683"W 0.58 0.01 -0 • 5525.00 58 + 242.63 3993.03 2387.14 - 1434.87' - 2743.26' 1419095.63 2391410.47 60°32'24.782"N 151 °13'45.130"W 0.17 0.1: 0.1: 5620.00 111M4111MEE 4043.16 2449.84 - 1471.60 - 2815.12 1419023.12 2391375.07 60°3224.421"N 151 °13'46.566"W 0.54 -0.+ • 0.62 ii .:i a i �; ,+• i ,. c rr:"� y -s 1 is , »,i' e i.z , Cook In lei Natural Gas Actual Wellpath Report YII STORAQ,E NaviTrak-OnTrak MWD<206-9661> BAKER Page 4 5 HUGHES REFERENCE WELLPATH IDENTIFICATION Operator CINGSA (Cook Inlet Natural Gas Storage Alaska) Slot Slot #1 Area Cook Inlet, Alaska (Kenai Peninsula) Well CLU Storage 1 Field Cannery Loop Unit (NAD83) Wellbore CLU Storage 1 Facility Gas Storage Pad LLPATH DATA (102 stations) MD Inclination 9 Eall TVD Vert Sect No1111111116111 Grid East 111531111 Latitude Longitude DLS Build Rate Turn Rate (ft [ (ft 011 111111101111111 [US ft NUM] (ft 0/100* 5812.00 58.08# 246.31' 4144.46 2578.12 IIIMEal -2961.45 1418875.49 2391305.81 60°32'23.711"N 151°13•49.491W 3.08 -0.15 3 5908.00 58.021 249.* I 4195.27 2645.66 -1574.12 -3036.94 1418799.45 2391276.67 60°3273.410"N; 151°13'51.000"W 2.93 -0.1 . 6004.00 56.181 252. '1 4247.43 2714.98 -1599.97 -3113.26 1418722.67 2391252.23 60°3223.156 151°13'52.526"W 3.51 -1.9 3. I 6100.00 56.030 259.5f 4301.01 2786.75 -1618.85 -3190.61 1418644.99 2391234.78 60°32'22.970"N 151°13'54.072"W 5.70 -0.10 6.1. wn 4 ivgrzrr s. riiivr _ , 6291.00 56.3 270.27' 4407.63 2937.92 -1633.331 -3348.18 1418487.19 • 60°32'22.826"N 151°1337.222"w 4.98 . 0.3 • 5.98 63 :4: .00 56.81 276.' I 4461.11 3017.95 -1628.23 -3428.90 1418406.58 2391229.80 60°32'22.876'N ; 151°13'58.835"W 5.76 0.4 6. :4: 6484.00 57.750 284.4 # 4513.05 3098.60 -1613.22 -3508.16 1418327.61 2391246.27 60°32'23.024N I 151°14'00.420"W 6.67 0.9: 7.: 6579.00 58.7- # 290.2.* 4563.08 3178.96 -1589.11 -3585.20 1418251.03 2391271.80 60°32'23.261"N 151°14'01.960'W 5.29 1.$ 6.'' "17.:11F1RI - -** r 6771.00 61.1. 302.1'' 4659.62 3339.34 -1515.39 -3.11111kal 1418104.08 2391348.24 60°3223.987"N I 151°14'04.926"W airEnallant 111111M 6866.00 63.01i 306.97' 4704.11 3416.77 -1467.74 -3802.61 1418035.91 2391397.15 60°3224.456"N [ 151°14'06.30'7"W 4.85 1.95 5.03 6961.00 65.030 312.271 4745.75 3492.34 -1413.29 -3868.34 1417971.20 2391452.80 60°32'24.992"N , 151°14'07.621"W 5.45 2.13 5.58 7057.00 66980 317.180 4784.81 3566.02 -1351.58 -3930.60 1417910.09 2391515.65 60°32'25.599"N 151°1408.867"W 5.09 263 5.11 * - 7111 i%caart -ziwaoaviEy:eebzwzEtr4vtv,m44yz::%:..P: 7248.00 11.1111111WIM 32433 4853.26 3704.20 -1212.99 -4042.54 1417800.74 2391656.27 60°32'26.964"N 151°1411.105"W 3.96 3.45 7344.00 73.- • • 328.7 :*# 4882.45 3769.15 -1136.60 -4092.77 1417751.92 239173337 60°32'27.716"N 151°14'12.110"W 4.89 ININEE 4.43 7440 76.240 332. 4907.52 3830.45 -1055.96 -4138.38 - - 1 - 417707.81 2391815.03 60°32'28310"N 151°14'13.022"W 4.49 111111EE' 7532.00 79... 334.1' I, 4926.74 , 3886.73 -975,66 -4178.92 1417668.76 2391896.06 60°3229.301"N 151°1423.833"W 11.1001111111111 ,„1:1';0„,,t;••:4,1; 4941.85 3939.79 -897.6 Nan 1 !:20:1 . 33. 4 , 7717.00 81.1. 335.0 I 4957.26 3997.83 411.08 -4257.68 1417593.05 2392062.06 60°32'30.921"N 151°1435.409"W 1.03 0.58 0.: 7813.00 80.' •1 335.1' I 4972.20 4054.66 -.725.05 -429738 allanZall 2392148.81 60°3231.768"N ' 151°14'16.208"W 0.24 -0.1' 0.15 7909.00 82.480 334.911 4986.02 4111.68 -638.92 .4337.65 1417516.28 2392235.66 60°32'32.616"N 151°14'17.009"W 1.61 8005.00 84.800 335.530 4996.66 4168.72 -552.30 -4377.64 1417477.90 2392323.00 60°32'33.469"N 151*14'17.809"W 250 0.65 1 2 .09 r srp,71-“„47 1,;"" 00:41 4W6Aoire 11392409,,° tr7:4 °S 196.00 85.1 10 335.980 5013.44 4281.02 -378.81 -4455.74 1417403.01 2392497.89 60°3235.177"N 151°14'19.372"W 0.27 0.1 i• O. 8290.00 335. • 5022.47 4336.24 -293.49 -4494.14 1417366.20 2392583.90 60°3236.017"N L, 151°14•20541"W 1.39 -1.3 8386.00 • I 335...0 5032.94 4392.81 -206.60 -453339 1417328.36 2392671.50 60°3236.873"le 151°1420.930"W 0.28 -0.2: 0.'- 8483.00 5043.97 4449.68 aliaMMEIEM 1417290.43 2392760.09 60°32'37.738"N 151°1421.721"W 0.43 -0.2 ■ 0.35 ", ti'if:47.,V.er!?.13;:eateelrja&til`441'-Titititlikria61;*,Zia* Cook Inlet Natural Gas Actual Wellpath Report Mall STORAQ a ' Nav�iTrak- OnTrak MWD <206- 9661'> BAKER ` �cta ¢ ; 41 . Page 5 a5 HUGHES REFERENCE WELLPATH IDENTIFICATION Operator CINGSA (Cook Inlet Natural Gas Storage Alaska) Slot Slot #1 Area Cook Inlet, Alaska (Kenai Peninsula) Well CLU Storage 1 Field Cannery Loop Unit (NAD83) Wellbore CLU Storage 1 Facility Gas Storage Pad LLPATH DATA (102 stations) SII) Inclination Azimuth TVD Vert Sect North East Grid East Grid North Latitude Longitude DLS Build Rate Turn Rate [ft] [ °] [ft] [ft] [f] [ft] [US ft] _ [USft] , ' MOOR] [°rlOO [°IIOOft] 8675.00 83.8.1 335.931 5064.61 4562.19 55.42 ! - 4651.32 1417215.48 ' 2392935.64 ; 60°32'39.453"N ' 151 23.286"W 0.32 -0.23 - Bilk 8771.00 84.550 335.650 5074.32 4618.53 142.53 - 4690.49 1417177.93 2393023.45 60°32'40.311'N 151 °1424.070"W 0.79 0.74 8867.00 85.071 335.650 5083.01 4675.11 229.63: -4729.91 1417140.13 2393111.26 60°32'41.168"N 151 °14'24.858"W 0.54 0.54 0.00 8963.00 85.571 335.640 5090.84 4731.75 316.79 - 4769.36 1417102.29 ` 2393199.13' 60 °32'42.027"N 151 °14'25.648 'W 0.52 0.52 -6:61 iw. 0 .,..,. �:, " w..` .a a , . ' .. �,. keh� P ...- s:@w"�`� . , ° .... ,. � , I _ , , w', - . .. - �C ,,..� a_ , 5::.... 9154.00 84.680 335.570 5107.10 490.30. - 4847.53 1417027.34' 2393374.041 60 °32'43.735"N 151 °14'27.212"W 0.56 -0.45 -0 9250.00 83.011 336.360 5117.39 4900.18 577.47: - 4886.41 1416990.08 2393461.911 60°32'44.593"N'. 151 °1427.990"W 1.92 -1.74 0.82 9346.00 83251 335.711 5128.87 4956.08 664.56 - 492513 1416952.97 2393549.691 60 °32'45.451"N 151 °14'28.765"W 0.73 0.25 -D69 9441.00 83.071 335.500 5140.19 5011.97 750.461 - 4964.09 1416915.60 239363629 60°32'46.296"N , I51 °14'29.545"W 0.28 -0.19 -0.21 ., • ` a w ''' ' � � ' x +M� + mo w # , � E � � � #f w. I It ti i 5 "* �� L . . 4 ..50- : r! �. 4 .�,,� �� [ � � sf � -a @ ..+ .: t . ,. 14rr 9602.00 ail= 335.7.1 ° 5159.26 5106.90 895.94 - 5030.37 1416852.03 2393782.96 . 60 °32'47.729"N 151 °14'30.872"W 1.89 0.50 9661.00 85.850 335.7.' 5164.43 5141.61 949.52 -5054.52 ; 1416828.87 2393836.98 I 60 °32'48.256 "N ! 151 °14'31.355"W 2.98 2.98 0.00 HOLE & CASING SECTIONS - Ref Wellbore: CLU Storage 1 Ref Wellpath: NaviTrak -OnTrak MWD<206- 9661'> String/Diameter Start MD End MD Interval Start TVD End TVD Start N/S r End N/S End EILV [ft] [fti [n] [ [ft] [It] [ft] [ft[ imemaimaurn 20M Conductor 0.00 0.00 0.00 0.00 -0.18 -0.16 13.375in Casing Surface 0.00 2956.00 2956.00 0.00 2642.85 0.00 0.00 ____ -804.8 n 9.625in Casing Intermediate 0.00 7563.00 7563.00 0.00 4932.23 0.00 0.00 - 948.19 -4192 LLPATH COMPOSITION - Ref Weilbore: CLU Storage 1 Ref Wellpath: NaviTrak- OnTrak MWD<206- 9661'> Start MD End MD Positional Uncertainty Model Log Name /Comment Weilbore ft ft 0.00 2914.00 NaviTrak a • Corr NaviTrak MWD<206- 2967'> CLU Stora • e 1 2914.00 7532.00 AutoTrak 03 (Standard) OnTrak MWD <3040- 7573'> CLU Storage 1 7532.00 9661.00 OnTrak Standard OnTraK MWD<7620- 9661'> CLU Stora • e 1 SURVEY LOG COMMENTS MD Inclination Azimuth TVD Comment .: . [ft] .._ ._._. [ °] [01 (ft) _... 9661.00 85.850 335.740 5164.43 Projected Data - NO SURVEY • Cook Isle Nalur4�\ as ram ST '`t, BAKER HUGHES ..- ......,,..,........,... _. .,. ....„...„............,...,. ...........,..... ..„......,,-, ,..„.:,,.„........ F iel d Bit Recor • ..... ,: ..:1 __ _ .....,,,,, . ...,.....................i._„:..............._ ,..........,„„..._,, ::,,i' :11.10,., ........„, .„.................,.......,, ..,....... . ..... ....._. ...,..... ... ....,:,... ... ...... ....., ...... .,. ..,...............,....„.. ,:,. ,,.....,.... .... ... ..,, .,..... , ....,!...:: :,...::. ...,, .y raw -s -.'7, -_ k „ t' v. h ry 'Ma . i ''' v reI '�' �' -"� t+� m va„ a lit ' ' 4 1 . z s, < _ate � a " m W� IL ook Wet Natural .Gas Ale h.TORA a% ADVANTAGE Bit Report BAKER HUGHES Operator CINGSA Fields Cannery Loop Facility Gas Storage Pad Location S9 T5N R11W Well CLU Storage 1 Wellbore CLU Storage 1 Rig Nabors 105E lob CLU Storage 1 (4223343) Bit Record Str Bit Size Mfr Name IADC S/N TFA Nozzles HSI In MO In TVD Dist Ti ROP Max RPM Press Flow W[ Dull Condition # in in^2 in /32 HP /in ^2 ft ft ft hours ft /hr lbf RPM psi USgal /min ppg I 0 0 1. B G 0 R 16 HCC MX1 115 5194403 0.9419 16,3x18 1.02 115.00 115.00 2852.00 17.00 167.76 20000 212 1900 610 NO TO 12 1/4 HCC QD505XX M223 7131957 0.8836 8x12 2.55 2967.00 2649.01 4606.00 34.70 132.74 12000 130 1800 600 I NO TD 8 1/2 HCC QD5032X M123 7114328 0,8399 3x13,3x14 0.80 7573.00 4933.96 2088.00 30.80 67.79 12000 232 1800 400 WT TD A Total of 3 bit runs were recorded, • • . ,, , , , , , J , ,, ,, ,,,,, , , , ,', , ,,, , . ........,-.„.,...-,...,................. ,. . - . „,............, .... -...... .. ,..... , . ,..,.......,.......,. .. . ,-., „ - . ..,.. . .,....... .o0 - ......... , , ...... .. .. . ......, .... „.„.......„.v. . .....„.. .... ... „, .. , -.... ',I*;;1 ,.,.. ... . . . - ” . r , , , , , , ..,,,, •..,,' • :, , ...,..,„,,,. ,,,... lig' 11:11 Z -:-' ''''''..-1-' - ,- • . . . .... .. ...,.....:, „,,,, , . . A ,.... .......„ , , ,, . 111111 MO - : : : : : , : : ' , :•: :: '.; : i.: :: :; ' il, ! ! : ',';' , ..: : :' . ,;,. :,:,: :: !;: ;`:;;:?::' ,. 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Cook Inlet Natural;'Gas Fait' ', _ '` ,, CINGSA (Cook Inlet Natural Gas Storage Alaska) BAKER Field: Locat Cook Inlet, Alaska (Kenai Peninsula) Slot: Slot #1 Field: Cannery Loop Unit (NAD83) Well: CLU Storage 1 HUGHES Facility: Gas Storage Pad Wellbore: CLU Storage 1 i -460 — e ►M ►�V N I Plot reference wellpath is NaviTrak - OnTrak MWD <206- 9661'> 0 L 20" Conductor True vertical depths are referenced to Nabors 105E (RTE) Grid System: NAD83 / TM Alaska SP, Zone 4 (5004), US feet Measured depths are referenced to Nabors 105E (RTE) North Reference: True north Nabors 105E (RTE) to Mean Sea Level: 53.55 feet Scale: True distance 460 - Mean Sea Level to Mud line (At Slot: Slot #1): 0 feet Depths are in feet Coordinates are in feet referenced to Slot Created by: jonethoh on 11 -Dec-11 900 - - • . - L n. 2250 - m 0 13 3/8 "Casing Surface > 2700 - a 2 I- 3160 — 3600 - • 4050 — 4500 — -.p 9 5/8 "Casing Intermediate 4850 - aftli 5400 - 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 450 0 450 900 1350 1800 2250 2700 3150 3800 4050 4500 4950 5400 5850 Vertical Section (ft) Scabs Inch 9000 Azimuth 281.94° with reference 0 00 N, 0.00 E Cook Inlet Natural;Gas CINGSA (Cook Inlet Natural Gas Storage Alaska) Vail-II STORA q . v,;' Location: Cook Inlet, Alaska (Kenai Peninsula) Slot: Slot #1 BAKER Field: Cannery Loop Unit (NAD83) Well: CLU Storage 1 HUGHES Facility: Gas Storage Pad Wellbore: CLU Storage 1 Plot reference wellpath is NaviTrak - OnTrak MWD <206- 9661'> True vertical depths are referenced to Nabors 105E (RTE) Grid System: NAD83 / TM Alaska SP, Zone 4 (5004), US feet Measured depths are referenced to Nabors 105E (RTE) North Reference: True north Nabors 105E (RTE) to Mean Sea Level: 53.55 feet Scale: True distance Mean Sea Level to Mud line (At Slot: Slot #1): 0 feet Depths are in feet Coordinates are in feet referenced to Slot Created by: jonethoh on 11- Dec -11 Seek t inch 599.998„ Easting (ft) -5400 -5100 - 4800 -4500 -4200 -3900 -3600 -3300 -3000 -2700 -2400 -2100 -1800 -1500 -1200 -900 -600 -300 0 300 1 1 I I I I I I I I I I I I I 1 1 1 1 1 1500 — 1200 0 I CLU Storage 1 CLU Storage 1 — 900 f G N oi - 600 0 — 300 + Slot #1 — 0 Z 0 / _ 3- O J an 13 3/8 "Casing Surface 600 j 0 9 5/8 "Casing Intermediate - ' \\\\ , - . — -1200 1500 Cook Inlet _,-, Q } ADVANTAGE Job Days Vs. Depth Chart BAKER r ER� HUGHES Operator CINGSA Field Cannery Loop Block /Co /Parish Facility Gas Storage Pad Well CLU Storage 1 Rig Nabors 105E lob 4223343 -CLU Storage 1 (4223343) Location S9 T5N R11W Days Vs. Depth for CLU Storage 1 (4223343) - Depths from Daily Drilling Report 0 2 4 6 8 10 12 14 16 -1,000 -2,000 • -3,000 t -4,000 11 g 3 -5,000 I 0 -6,000 -7,000 -8,000 -9,000 • - 10,000 Days Since Spud • • scgio[E o[F ALAs[vA SEAN PARNELL, GOVERNOR ALASKA OIL AND GAS 333 W. 7th AVENUE, SUITE 100 CONSERVATION CODIIIIISSION ANCHORAGE, ALASKA 99501 -3539 PHONE (907) 279 -1433 FAX (907) 276 -7542 M. Colleen Starring Vice President Cook Inlet Natural Gas Alaska, LLC 1-141 P.O. Box 190989 Anchorage, AK 99519 Re: Cannery Loop Field, Sterling C Pool, CLU Storage 1 Sundry Number: 312 -017 Dear Ms. Starring: 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. This sundry approval includes perforating and a limited flowback for cleanup but does not authorize injection of gas for the initiation of the storage project. Please note the provision of finding seven (7) in SIO 9. This well may not be used for regular storage or production until a spacing order is attained. 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. Sincerely, 40/ Daniel . Seamount, Jr. Chair DATED this 2,5 day of January, 2012. Encl. • . Cook Inlet NaluraGas Cook Inlet Natural Gas Storage Alaska, LLC 3000 Spenard Road PO Box 190989 STO RA Q Anchorage, AK 99519-0989 = - Main: 907 - 334 -7980 � Q yr Fax: 907-334-7671 FtE guporn_ January 17, 2012 Alaska tail : ' ... w; p ; Alaska Oil and Gas Conservation Commission �r 333 West 7th Avenue, Suite 100 Anchorage, AK 99501 Re: CLU Storage 1 Application for Sundry Approvals Cook Inlet Natural Gas Storage Alaska, LLC (CINGSA) requests Sundry Approval to perforate and clean up CLU Storage 1. The well was suspended on December 16, 2011, pending Coil Tubing perforating. A completed Sundry Approval Application for this activity is enclosed with this letter. There are currently no open perforations in the well and 8.6 KCL brine was left in the 7 -inch tubing string. The tubing was tested to 3,000 psi. CINGSA proposes to rig up a 2 3/8 -inch coil tubing unit and well test equipment on location January 23, 2012. The operations as described in the attached outline well procedures will take place in three phases. First, a correlation run will be made with coil and a Gr /CCL memory log to ensure proper depths. Second, a series of coil conveyed perforating runs will be made. Perforating will take place overbalanced. The current expected BHP is 380 psi, however, virgin pressure pockets may be expected up to the datum pressure of 2206 psi. A viscous polymer pill was left in the liner to inhibit losses. The final phase will be well clean. Coil will be run in -hole to bottom while displacing the brine with nitrogen. The well will be flowed back via a choke manifold to a P tank. Fluids will be recovered in a frac tank and gas will be either flared or vented through a flare stack. The well flow is not expected to last more than 4 hours after the brine is off the perforations. The return gas will be measured via a turbine meter for relative volumes. CINGSA does not consider this well clean up procedure a well test. If you have any questions or require additional information, please contact Tom Arminski at 907 334 -7743 or email to tom.arminski@enstarnaturalgas.com. Sincerely, • M. Colleen Starring Vice President Enclosure as stated • S TATE OF ALASKA \ 7 • ' 1 Pl 2017._ ALASKA OIL AND GAS CONSERVATION COMMISSION APPLICATION FOR SUNDRY APPROVALS Alaska Oil It Gas Owns. Commission 20 AAC 25.280 Ancltoraae 1. Type of Request: Abandon ❑ Plug for Redrill ❑ Perforate New Pool ❑ Repair Well ❑ Change Approved Program ❑ Suspend Plug Perforations ❑ Perforate 12 Pull Tubing ❑ Time Extension ❑ Operations Shutdown ❑ Re-enter Susp. Well 0 Stimulate ❑ Alter Casing ❑ Other: ❑ 2. Operator Name: 14. Current Well Class: 5. Permit to Drill Number: Cook Inlet Natural Gas Alaska, LLC Development ❑ Exploratory ❑ 211149 3. Address: Strati 6. API Number: graphic ❑ Service El P.O. Box 190989, Anchorage, AK 99519 50- 133 - 20600 -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 CLU Storage 1 9. Property Designation (Lease Number): 10. Field/Pool(s): ADL 391627 Cannery Loop/ Sterling C 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): 9,661' 5,164' 9,617' 5,180' none none Casing Length Size MD TVD Burst Collapse Structural Conductor 95' 20" 115.5' 115.5' Surface 2956' 13 3/8" 2,956' 2,643' 3,450 1950 Intermediate 7563' 9 5/8" 7,563' 4,932' 5,750 3090 Production Liner 2,316' 7" 9,659' 5,164' 7.240 5410 Perforation Depth MD (ft): Perforation Depth TVD (ft): Tubing Size: Tubing Grade: Tubing MD (ft): , Set Attached Set Attached 7" 26# L-80 .,9•sg -?3'-!3 ! i- Packers and SSSV Type: BHI 9 5/8 "HR ZXPN Liner Top Packer Packers and SSSV MD (ft) and TVD (ft): Halliburton 7" WL FXE SSSV Packer - 7,34374,882' ; SSSV - 173'1173' 12. Attachments: Description Summary of Proposal 12 13. Well Class after proposed work: Detailed Operations Program © BOP Sketch i0 Exploratory ❑ Development ❑ Service El 14. Estimated Date for 15. Well Status after proposed work: Commencing Operations: 23-Jan -12 Oil ❑ Gas ❑ WDSPL p Suspended ❑ 16. Verbal Approval: Date: / - z "- / L- WINJ ❑ GINJ ❑ WAG ❑ Abandoned ❑ Commission Representative: C.;,...„1 S-/ .,,,, FL- GSTOR El SPLUG ❑ 17. I hereby certify that the foregoing is tr4 and correct to the best of my knowledge. Contact Tom Arminski, 907 334 -7743 Printed Name M. Colleen Starring Tie Vice President Signature Phone / �Dat 1. liL r GLt/LI,A � ' !/ a'� / . COMMISSION U ONL Conditions of approval: Notify Commission so that a representative may witness Sundry Number: 3i 2 r Or) Plug Integrity ❑ BOP Test El Mechanical Integrity Test ❑ Location Clearance ❑ Other: -- 3 5 OD /5 4 t-- , (EIC) �� .12 Subsequent Form Required: / jj _ LL/ V 7- APPROVED BY , Approved b • / COMMISSIONER THE COMMISSION Date: [1 PP Y 1 /1 R:DMS JAN 26 101 ORIGINAL 2 z /Zd��i 15 ,.,, 0,_, • CLU Storage 1 Outline Perforating and Well Clean Procedures GENERAL SAFETY GUIDELINES W r 2°- / / )/ / , 151--°(1-1-- A pre job safety meeting will be held with all affected personnel before every phase and for any change of program. Topics should include the following points: • H2S risks, spill prevention, and well control issues • Personnel assignments • Maximum safe pumping pressure prior to firing guns • Contingencies It should be stressed that while picking up and running the perforating string, only essential personnel should be on the work platform. Normally "essential personnel" will consist of the perforating crew and a roustabout for crane signals. All other personnel will stay off the platform and out of the cellar until the perforating string is at least 300' below ground level. Radio silence is not required with the Schlumberger systems described in this recommended practice. Fired guns will not be recovered unless the well is dead and stable. Should the well flow during recovery with the guns across the BOPS, the deployment bar with circulation ports on the lower end and a tested TIW valve on the upper will be stabbed into the gun BHA and immediately lowered below the BOPS. The pipe rams will then be activated on the deployment bar shutting the well in. RIG UP AND PRESSURE TEST 1. Notify AOGCC of upcoming rig up and BOP test 48 hours prior. Confirm SSSV protection sleeve is in place. 2. Mobilize and rig up 2 3/8" Coil tubing and Well testing equipment to CINGSA Drill Pad. 3. Position Blind Rams in upper Combi BOP body and 2 3/8" pipe rams in lower body. Pre -test BOP, all lines and valves to 2 psi 3500 psi. Install fusible cap on SSV. 4. CaII for AOGCC Inspector. Pressure test BOP, all lines and valves to 250 psi /3500 psi. Ensure form 10 -424 is sent in to AOGCC within 24 hours of Pressure Test. CORRELATION RUN 5. Pick up memory GR /CCL. Pick up and tag stuffing box for a zero. RIH at 60 -80 fpm. Take diesel freeze protection initial returns to slop tank. Break circulation every 1000'. 6. Tag Float Collar at 9,617'. Flag coil and POH while slowly circulating to back fill tubing displacement volume. 7. Make depth correlations for perforating. TCP Perforating 8. Pick up safety joint, TIW valve and any necessary crossovers to top of CT Jacking Frame. 9. Pick up and space out gun assembly to perforate the following intervals (two runs required) Run Sheets are attached. Run #1 - Bottom 9560' to 9400' 100' Guns/ 68' blank Run #1 - Top 8700' to 8240' 330' Guns /154' blank Total BHA Length - 670' Run #2 - 8220' to 7710' 415' Guns /111' Blank Total BHA Length - 531' • . Perforations 4.5" PowerJet 4505 HMX 4 SPF MD Perforation TVD Perforation From To Footage From To Footage 7710.00 7865.00 155.00 4956.18 4980.00 23.82 7960.00 8220.00 260.00 4992.15 5015.55 23.40 8240.00 8510.00 270.00 5017.42 5047.05 29.63 8640.00 8700.00 60.00 5060.88 5067.25 6.37 9400.00 9440.00 40.00 5135.27 5140.07 4.80 9500.00 9560.00 60.00 5147.35 5154.65 7.30 Total Footage 845.00 Total Footage 95.32 10. Make up Coil Tubing Running tools. 11. Pickup BHA and injector head with crane. Remove slip bowl. 12. Lower injector and make up lubricator connection. 13. Pick up and tag stuffing box. Set zero. RIH tagging float collar for depth conformation. Set guns to perforating depth. 14. Activate E -Fire head according to TCP specialist procedures. Verify firing. Check well for pressure. 15. Pick up to second interval depth. Pump ball to seat and perforate second interval. Verify firing. Check well for pressure. 16. Pull out of hole until connector tags stuffing box. 17. Check well for pressure. Open well and confirm well dead. Observe for 15 minutes. 18. Break lubricator connection and raise injector head. Disconnect coil. Set injector head off to the side. /19. 19. Lay down spent perforating guns. Note: perform TIW stab -in drill at least once per shift. Record on daily report. 20. Repeat procedures 9 through 19 for second run. WELL CLEAN UP 21. Pick up circulating wash nozzle and injector head with crane. Lower injector head and make up lubricator connection. 22. Run in hole to 9,617' while pumping N2 at a rate of 750 -1250 scfm. Take returns through choke manifold to Ptank. Note Liner portion of well was displaced with FloPro pert fluid at 8.6 ppg. 23. Monitor returns for methane. Strap tanks for return volume. Continue pumping N2 until well is clean of brine and flowing gas. Shut off N2. 24. Flow well clean for one hour or until fluid is off perforations while POH with coil . Record pressures and rates. 25. Once coil is clear of tree, close upper and lower master and. Bleed pressure off through choke manifold until no flow. Close swab valve. 26. Nipple down coil. Nipple down test equipment. Send fluids to AIMM for disposal. 27. Release coil unit. • • . . CII\IGSA CLU Storage 1 Proposed Completion Schematic FMC Wei bek -13 51" 5O Y FMC Tree - 7 '• 5003= complete with c_ Iv 1162012 • 20'' 133 X_' &wen to 115.5 TV'D/115.5" MD Hallttr.mtco. WireLme Kettle SS'S"V @ 173* TVC 1 . .'.4.1D , A . J • . . 13 31' 5S :55 ETC Slirce Cain g *: 2643' TV'D ; 2956 MED ..-i. ......-•••• 15' ho'..e Oiled to Surface I r-ZD m Tcp Tubmg - , t, • ,... , _.....- — - 5 6' Baker Da) L Top Packer ord. 1Y bate ;2 4. : Tt'D 7 .343' NICI . - -_ 9 5 S" 40x LSO BIC as ernaediate : Ia.. :432' IVD 7.563 . ' MD 4 . / ./ L 1 .. bole C.emeuted a S / PAD Perforation VV Perforation /. . From To Footage From To Footage t % 01 1 7710.0C 766E. CC 155.00 4956.1E 4980.0C 23.E2 . J 7960.00 =C.00 260.0C 4992.15 5015-5E 23.40 C0 8240.04 851 C.03 270.00 501742 5047.M 29.63 5 I 4 864041C 570C.1X3 60. 506085 506725 6-37 L) r: 95C0 9441 956C D 8:11 5 5 e4 Total Footage 645.00 Total Footage Im. so H 35 1 1 - I 7 .' 2f* LSO Vara Top Pro:ILL Lou fran4.111C: 1A - ,343' MD TOP to 5.164 TI.T1 P.6509 NM TD S 1.2" hole Cad • IP . -� CINGSA PROJECT y r / " COILED TUBING STACK UP Kenai, AK :! CT I*cto<Head N. CTHrNngrrm 'F�`_� ,\ •x.17; N 9.06" Ca•embrml Stopper N. 1015 h o17.00 rubricator • • 5 '•:•q .• .706 Corner BOP 1rt �ra . We • 2.375 String 7.06' SK How cross w /outkl 1r I , rk i 1 n�1r4E ni 7ON'5K WeN Tree .'„� i ' MN Well Clean Rig Up 150 MAWP P -Tank 100 a.• • SSV -2" 2" Gas LoTOrc Choke 7 Measurement / Tree - 7" 5k • relief Rain for Rent , / loo' • ). Tank VVV " r BP valve 2' • .as out . - Rai for Rent fir. — • • Tank drain • A 4" -206 150' 2" -1502 wing `\ 100' 4" -206 Thread 2" -1502 4" -206 data header header .` V ■ Gas to client tower I Perforating Run Sheets Schlumberger Tubing Conveyed Perforating Client Well Rio F el, Date Guns Cook Inlet Natural Gas Storage CLUS 1 SLB I Ker 1)8/2012 4.7T 4spf 4505PJ Count of Entries = => 13 Description Gun 4 Length Top Bottom Gun Sill Upper set of guns B-IA i 2j '?F 8,890.42 9,379.48 TCP eFire Fin Heac j 5 9,379.48 9 392.00 J I 6 8. 9,392.D0 9,400.00 8 13 9,400.00 9,413.08 12.5 ft bottom up _■ 51 � Gun . 21.08 9, 9,434.16 80 9,434.16 9,440.00 5.0 ft top down 21 9,440.00 9,455.24 Blank (Gun Puncher) 5 21.08 9,455.24 9,476.32 I puncher 2 Blank (Gun Puncher) 4 21.08 9,476.32 9,497.40 puncher 2 9,497.40 9,500.00 9,500.00 9.518.48 18.0 ft bottom up 73 Gun 2 21.08 9,518.48 9.539,56 60 Gun 1 20.44 9,539.56 9,560.00 80 Bottom nose I 0.86 9.560.00 9,560.86 676 <— BHA length :w "or;; • !Clage,.i —> (389) Depths are referenced by shot location See additional handout for physical lengths letervats Top MD Bottom MDI Het Blank Net Loaded WI Blank (Gun Puncher) -2 Blank (Top) 9.392.00 9,400.00 8.00 Partially Loaded Gun - 3 1 Loaded 9.400.00 9.440 00 g 40.00 4 Fully Loaded Gun - 2 Blank 9,440.00 9 500.00: : 60.00 Bottom Gun - 1 2 Loaded 9,500.00 9.560.00 60,00 4 Total Loaded , c �.DD RUN 1 BB QTTQ M Total Blank 68.00 Total Gun Length 168.00 Total Schlumberger BHA Length: 670.44 Ft. F'esared By Reviewed By Client Representative WCP.TCP,SD ° -054 r Scot Shier Sarah 15-Dec-07 Revision: AKA - 15•De I 1 . • • 1 Schlumberger Tubing Conveyed Perforating' Client t'rei Rat Field Cate Guns Cook Inlet Natural Gas Storage CLLIS 1 SL81 Kenai 1t812012 4 72` 4spf 4505PJ Count of Entries =_> 27 Description Gun 4 Length Top Bottom Gun 5.11 CBF Firing Head ! 21 4.00 8,211.80 8.215.80 Blank (Safety Spacer wipuncher) 31 21.08 8.215.80 8,236.86 puncher ? 8. 8,236240.00 .88 68,,2240 57.96 17.5 ft bottom up 71 Gun i 17. 291 21.08 8.257.96 8,279.04 80 Gun 28= 21,08 8.279.04 8,300.12 80 Gun ! 271 21.08 8.300.12 8,321.20 80 Gun ! 26! 21.08 8.321.20 8.342.28 __ - -- 80 Gun 35! 21.08 8.342.28 6,363.36 BO Gun ! 24! 21.08 8.363.36 8.384.44 _ _ 80 !Gun ! 23! 21.08 8.384.44 8.405.52 60 I Gun ! 22! 21.08 8.405.52 8.426.69 __ 80 Gun I 211 21.08 8.426.60 8447.68 _ 80 Gun 20 21.08 8.447.68 6468.76 _ -- 80 Gun 19 21.08 8.468.76 8.489.84 80 8.489.84 8,510.00 19.5 ft top down _ 79 8,510.00 8,510.92 !Blank {Gun Puncher) 17 21.08 8,510.92 8,53200 puncher 2 Blank {Gun Puncher) 16 21.08 ' 8,532.00 8,553.08 , puncher 2 Blank {Gun Rancher) 15 21.08 8,553.08 8,574.16 puncher 2 !Blank {Gun Puncher) 14 21.08 8,574.16 8,595.24 puncher 2 'Blank {Gun Puncher) 13 21.08 8,595.24 8,616.32 puncher 2 Blank (Gun Puncher) 12 21.0E 8,616.32 8,637.40 LT puncher 2 1637.40 8,640.00 - .48 8.640.00 1658.48 18.0 ft bottom up 73 Gun 10 21.08 8.656.48 8,679.56 80 Gun 9 20.44 8.67:i.56 8.700.00 80 Boron, note & Lcner cet of guns 18224 8 700.02 E,882.24 . 670.44 <- BHA lent' r..' cunt of Gus (Cho ec --' r. (1276) Depths are referenced by shot location See additional handout for physical lengths. Blank Safety with puncher - 1 Intervals Top MD Bottom MD! !Het Blank Net L adifrd spf Blank (Gun Puncher) - 6 Blau# fT 8.215.60 8 240.00 ! ! 24.20 Partially Loaded Gun - 3 1 Loaded 8.240.00 8,510.00 270.00 4 Fully Loaded Gun - 12 Blank 8,510.00 8,640.00 ` 130.00 Bottom Gun - 1 2 Loaded 8.640.00 8.700.00 60.00 4 Bottom vet cf guns 8.700.00 8,88224 j 182.24 f t f p Total Loaded 330.00 1 _ RUN UPPER Total' Blank 336.44 Iota' Gun Length 666,44 Total Schlumberger BHA Length: 670.44 Ft. Prepared By: Reviewed By Client Representative: WCPITCP,SDP -054 Soot Shier Sarah -Howe Revision: AKA1.4 - 15-Dec-07 Il 6 Schlumberpr Tubing Conveyed Perforating Client Web I. Field Date Guns Cook Inlet Natural Gas Storage CLUS 1 SLB1 Kenai 118/2012 4.72' 4spf 4505PJ Coun: of Entries = => 29 Description Gun # Length Top Bottom Gun S11 `CBF Firing Head 1 4.00 7,689.64 7,693.64 7.693.64 7,710.00 7,710.00 7,714.72 4.0 ft bottom up � 17 Gun 241 21.08 7,714.72 7.735.80 80 Gun i 23 21.08 7,735.80 7.756.88 80 Gun 22 21.08 7.756.88 7,777.96 80 Gun 21 21,08 7,777.96 7,799.04 80 Gun 20 21.08 7,799.04 7.820.12 80 Gun 19 21.08 7.820.12 7.841.20 80 Gun 18 21.08 7.841.20 7,862.28 8D 7,865.00 7,865.00 2.0 ft top down 9 7.665.00 7 Blank (Gun Puncher) 16 21.08 7.883 36 7 904.44 puncher 2 Blank (Gun Puncher) 15 21.08 7 904.44 7,925.52 L puncher 2 Blank (Guts Puncher) 14 21.08 7.925.52 7,946.60 puncher 2 7,946.60 7.960.00 7,960.00 7.967.68 7.0 ft bottom up 29 Gun 12 21.08 7.967.68 7.988.76 80 ) Gun 11 21.08 7.988.76 8,009.84 80 IGun 10 21.08 8,009.84 8,030.92 80 Gun 9 21.08 8.030.92 8.052.00 60 Gun 81 21.08 8,052.00 8.073.08 80 Gun 7 / 21.08 8.073.08 8.094.16 80 3 ' Gun 1 6 21.08 8.094.16 8,115.24 80 :6 un 5 21.08 8.115.24 8,136.32 80 / Gun l 41 21.08 8,136.32 8.157.40 80 : Gun 3, 21.08 8.157.40 8,178.48 80 !Gun 2 21.08 8.178,48 8,199.56 80 1 Gun 1 20.44 8.199.56 8.220.00 80 ,Bcsorn node 0.86 8.220.00 8,220.86 <_ BHA .tengrh L'avd of Gans /Gafyes) ti (1581) Depths are referenced by shot location See addtioral nando it for physical ien3ths Blank - 0 Intervals Top MD Bottom MDR ' Blank Net Loaded spf Blank (Gun Puncher) - 3 Blank ;Top) 7 693.64 7.710.00 16.36 Partially Loaded Gun - 3 1 Loaded 7.7 10,00 7,865.00 . 155.00 4 Fully Loaded Gun - 18 Bank 7.865.00 7,960.00 ' ' 95.00 Bottom Gun - 1 2 Loaded 7.960.00 8,220.00 II 260.00 4 Total Loaded 415.00 RU N 2 Total Blank 111.36 l� Tote.' Gun Length 526.36 , Total Schlumberger BHA Length: 531.22 Ft. Frepared By Reviewed By. Client Renresen;at re WC P.?CPtSDa -054 Soot Shier Sarah idwe Revision. AKA'.4 - tS -Deo-07 • CLU Storage 1 Outline Perforating and Well Clean Procedures Rig Up and Pressure Test 1. Notify AOGCC of upcoming rig up and BOP test 48 hours prior. 2. Mobilize and rig up Coil tubing and Well testing equipment to CINGSA Drill Pad. r °20 3. Pre -test BOP, all lines and valves to 250 psi /3500 psi. Install fusible cap on SSV. 4. Call for AOGCC Inspector. Pressure test BOP, all lines and valves to 250 psi /3500 psi. Ensure form 10 -424 is sent in to AOGCC within 24 hours of Pressure Test. Correlation Run 5. Pick up memory GR /CCL. Pick up and tag stuffing box for a zero. RIH at 60 -80 fpm. Take diesel freeze protection initial returns to slop tank. Break circulation every 1000'. 6. Tag Float Collar at 9,617'. Flag coil and POH while slowly circulating to back fill tubing displacement volume. 7. Make depth correlations for perforating. TCP Perforating 8. Pick up safety joint, TIW valve and any necessary crossovers to top of CT Jacking Frame. 9. Pick up and space out gun assembly to perforate the following intervals (two runs required) Perforations 4.5" PowerJet 4505 HMX 4 SPF MD Perforation TVD Perforation From To Footage From To Footage 7710.00 7865.00 155.00 4956.18 4980.00 23.82 7960.00 8220.00 260.00 4992.15 5015.55 23.40 8240.00 8510.00 270.00 5017.42 5047.05 29.63 8640.00 8700.00 60.00 5060.88 5067.25 6.37 9400.00 9440.00 40.00 5135.27 5140.07 4.80 9500.00 9560.00 60.00 5147.35 5154.65 7.30 Total Footage 845.00 Total Footage 95.32 10. Make up Coil Tubing Running tools. 11. Pickup BHA and injector head with crane. Remove slip bowl. 12. Lower injector and make up lubricator connection. 13. Pick up and tag stuffing box. Set zero. RIH tagging float collar for depth conformation. Set guns to perforating depth. 14. Activate E -Fire head according to TCP specialist procedures. Verify firing. Check well for pressure. 15. Pick up to second interval depth. Pump ball to seat and perforate second interval. Verify firing. Check well for pressure. 16. Pull out of hole until connector tags stuffing box. 17. Check well for pressure. Open well and confirm well dead. Observe for 15 minutes. 18. Break lubricator connection and raise injector head. Disconnect coil. Set injector head off to the side. 19. Lay down spent perforating guns. Note: perform TIW stab -in drill at least once per shift. Record on daily report. 20. Repeat procedures 9 through 19 for second run. Well Clean Up 21. Pick up circulating wash nozzle and injector head with crane. Lower injector head and make up lubricator connection. 22. Run in hole to 9,617' while pumping N2 at a rate of 750 -1250 scfm. Take returns through choke manifold to Ptank. Note Liner portion of well was displaced with FloPro perf fluid at 8.6 ppg. 23. Monitor returns for methane. Strap tanks for return volume. Continue pumping N2 until well is clean of brine and flowing gas. Shut off N2. 24. Flow well clean for one hour or until fluid is off perforations while POH with coil . Record pressures and rates, 25. Once coil is clear of tree, close upper and lower master and. Bleed pressure off through choke manifold until no flow. Close swab valve. 26. Nipple down coil. Nipple down test equipment. Send fluids to AIMM for disposal. 27. Release coil unit. 2A-11 2429 BAKER PRINT DISTRIBUTION LIST HUGHES COMPANY CINGSA INTERMEDIATE FINAL Yes (mandatory) WELL NAME CLU Storage#3 FL ► MBER LWD (mandatory) RECEI FIELD Cannery Loop Unit • SMAN Woods,Jim (mandatory) (mandatory) COUNTY Kenai Peninsula JAN 2 4 20141 DISTRICT Alaska (mandatory) (mandatory) STATE Alaska Alaska Oil 3 Gas Cons.Comm) OF (mandatory) Anchorage LOG DATE: 9/16/2011 TODAYS DATE: 11/18/2011 (mandatory) DISTRIBUTION LIST AUTHORIZED BY: CINGSA (mandatory) HAS CLIENT BEEN INVOICED FOR ADDITIONAL PRINTS? Yes COMPANY CD (digital FINAL digital/ ADDRESS(FEDEX WILL NOT DELIVER TO P.O.BOX) LOGS LOGS image) FILM PERSON ATTENTION #OF PRINTS #Or F'HIN I S #OF COPIES #OF COPIES t PRA I 4 4 Attn:Tom Walsh,Rick Gentges,Rig 3601 C Street,Ste 822 Anchorage,AK 99503 2 AOGCC I 1 1 1 I Attn: Christian Mahnken 333 West 7th Ave. Anchorage,AK 3 DNR I 1 I 1 Attn:William C.Barron-Director Dept.of Natural Resources-Div.of Oil and Gas 550 West 7th Ave. Anchorage,AK 4 I I I I scow MAR 1 4 Z31� 5 I 1 TOTALS FOR THIS PAGE: 0 6 6 TOTALS FOR ALL PAGES: 0 6 6 0 0 0 Page l of l Schwartz, Guy L (DOA) From: Schwartz, Guy L (DOA) Sent: Friday, January 20, 2012 2:24 PM To: 'cperry@att.net' Cc: Regg, James B (DOA); DOA AOGCC Prudhoe Bay Subject: CLU Storage 1 initial CT BOP test (Initial Perfs & Flowback) PTD 211 -149 Conrad, I just talked to Jim Regg... Soonest an AOGCC Inspector can witness the BOP test will be Wednesday or so. The Sundry is still circulating for approval so that would be better to assure that it is ready and signed. You can always start rigging up the equipment before just not enter the wellbore and begin operations. Guy Schwartz Senior Petroleum Engineer AOGCC 793 -1226 (office) 444 -3433 (cell) From: Conrad Perry [mailto:cperry@att.net] Sent: Friday, January 20, 2012 9:00 AM To: Schwartz, Guy L (DOA) Subject: RE: Also found out the stuff is 37% by volume elastomer. conrad From: Schwartz, Guy L (DOA) [mailto:guy.schwartz @alaska.gov] Sent: Friday, January 20, 2012 8:54 AM To: cperry@att.net Subject: RE: Thanks, By chance I ran in Mike Martin (schlumberger) this morning at the coffee shop. He is looking for some flexstone info for me too. We had a good discussion about it already. Guy Schwartz Senior Petroleum Engineer AOGCC 793 -1226 (office) 444 -3433 (cell) From: Conrad Perry [mailto:cperry(aatt.net] Sent: Friday, January 20, 2012 8:09 AM To: Schwartz, Guy L (DOA); Maunder, Thomas E (DOA) Subject: Tom /Guy, This is the only bond log paper that that comes close to discussing the Flexstone type of cement. Its pretty nebulous, just saying high tech cements are difficult to evaluate, conrad 1/20/2012 Page 1 of 1 Schwartz, Guy L (DOA) From: Schwartz, Guy L (DOA) Sent: Monday, January 23, 2012 9:27 AM To: 'cperry@att.net'; Maunder, Thomas E (DOA) Cc: Saltmarsh, Arthur C (DOA); Grimaldi, Louis R (DOA) Subject: CLU 1 Storage (PTD 211 -149) Conrad, Thanks for the correction ... I will change the information in the sundry application. Could you give me an update on your operational timing and BOP testing ( for witnessed test - Wednesday — Thursday timing) ? I anticipate that the sundry approved tomorrow. Art Saltmarsh talked to me Friday and mentioned there was a Spacing exemption for the field but that he needed to find the documentation before we actually perfed the wells for the gas storage. I will be following up on that today. Also, for the other wells to be perforated it will be critical for me to look at the 407s and CBL's for all the wells as soon as possible. Have these been submitted to the Commission yet ?? Regards, Guy Schwartz Senior Petroleum Engineer AOGCC 793 -1226 (office) 444 -3433 (cell) From: Conrad Perry [mailto:cperry©att.net] Sent: Monday, January 23, 2012 8:39 AM To: Schwartz, Guy L (DOA); Maunder, Thomas E (DOA) Subject: Correction Guy, Slight correction to CLU Storage 1 10 -403 Sundry. 1 have the tubing depth listed in the present well summary as 9,659' it should be 7,563'. conrad • II I 1/23/2012 Page l of l • Schwartz, Guy L (DOA) From: Schwartz, Guy L (DOA) Sent: Wednesday, January 25, 2012 12:10 PM To: 'cperry@att.net Cc: Saltmarsh, Arthur C (DOA); Davies, Stephen F (DOA) Subject: CLU storage 1 (PTD 211 -149) Attachments: CLU Storage 1 .pdf Conrad, As we discussed on the phone , you have verbal approval to perforate the well CLU Storage 1.(This sundry approval includes perforating an d5 limited flowback for cleanup but does not authorize injection of gator the initiation of the storage project. Attached is a copy of the sundry .. a signed document will be forthcoming. Guy Schwartz Senior Petroleum Engineer AOGCC 793 -1226 (office) 444 -3433 (cell) 1/25/2012 w STATE OF ALASKA ALASKA OIL AND GAS CONSERVATION COMMISSION 333 West 7th Avenue, Suite 100 Anchorage Alaska 99501 Re: THE APPLICATION OF Cook Inlet Natu- ) Docket S1O -10 -05 ral Gas Storage Alaska, LLC for an order ) Storage Injection Order No. 9 authorizing underground natural gas storage ) in the Cannery Loop Unit, Kenai Peninsula ) Cannery Loop Field Borough, in conformance with20 AAC ) Cannery Loop Unit 25.252 and 20 AAC 25.412. ) Sterling C Gas Storage Pool ) November 19, 2010 IT APPEARING THAT: 1. By application dated July 27, 2010, Cook Inlet Natural Gas Storage Alaska, LLC (CINGSA) requested a storage injection order from the Alaska Oil and Gas Conservation Commission (Commission or AOGCC) authorizing injection for underground storage of natural gas, in the proposed Sterling C Gas Storage Pool of the Cannery Loop Unit (CLU). 2. On August 20, 2010, pursuant to 20 AAC 25.540, the Commission published in the Alaska Journal of Commerce notice of opportunity for public hearing on October 19, 2010. Notice was also published in the Peninsula Clarion on August 29, 2010. 3. On September 13, 2010, Inlet Fish Producers, Inc. (IFP) requested a hearing and protested CINGSA's application for this CLU gas storage. 4. On September 20, 2010 and September 30, 2010, CINGSA electronically submitted to the Commission amendments to its July 27, 2010 application. 5. The Commission held a public hearing on October 19 and 20 2010 at 333 West 7th Avenue, Suite 100, Anchorage, Alaska 99501. Testimony was presented by CINGSA and IFP. CINGSA and IFP also submitted written exhibits. 6. The record was held open until October 27, 2010, to permit CINGSA and IFP to provide written additional comments for the hearing record. FINDINGS: 1. Operator Marathon Oil Company (Marathon) operates the CLU, which is located within the Kenai Field on the east side of the Cook Inlet, Kenai Peninsula Borough, Alaska. CINGSA anticipates acquiring the proposed Sterling C Pool reservoir from Marathon. As of October 19, 2010 the Alaska Department of Natural Resources had not issued a CLU gas storage lease to CINGSA. Storage Injection Order 9 November 19, 2010 Page 2of12 2. Injection Strata The proposed Sterling C Gas Storage Pool is comprised of the CI and C2 fluvial channel sandstones (in descending order). The proposed injection and storage interval corresponds to the CLU No. 8 well between the measured depths of 6690' and 6945' (see Figure 1, below). Gross interval thickness for the proposed storage reservoir averages about 200', and net sand thickness averages about 95'. The original structure at the top of the proposed storage reservoir is comprised of a structural, four -way dip closure that was charged by biogenic methane gas. The CLU is situated along the Aleutian megathrust tectonic plate boundary. The Cannery Loop and the nearby Kenai Gas Fields have produced regularly since 1988 and 1962, respectively, and have not been affected by seismic activity within the Cook Inlet Basin. The nearest known active fault is the West Boundary Fault in Cook Inlet, about 16 miles from the proposed CLU gas storage site. The Cannery Loop Fault is a north- dipping, east - west - trending fault located about 2 miles from proposed CLU surface facilities. Planned wells do not intersect the Cannery Loop Fault and no fault rupture hazard exists. The CLU earthquake ground motion hazard is similar to that of gas storage areas in southern California, western Washington and Oregon, where wells move with the surrounding soil and rock, and there is no differential displacement. There are no nearby slopes or free faces that would allow lateral spread by liquefaction; none was reported in the CLU area as a result of the 1964 earthquake. No CLU site hazards have been identified that could result from tectonic and local subsidence, tsunami, flooding, slope stability, or volcanic hazards, other than volcanic ash fall. 3. Pool Information The Cannery Loop Field contains four separate gas pools. They are, in ascending order: Tyonek D, Upper Tyonek, Beluga, and Sterling Undefined. The youngest, the Sterling Undefined Gas Pool, produces from the CI and C2 sandstones, These sandstones have been managed as a single reservoir through commingling of multiple perforated intervals within well CLU -06. To date, only the Sterling C interval within the Sterling Formation has had commercial gas development. The Sterling sandstones are Miocene - Pliocene aged. They are part of a sequence of sandstone, siltstone, mudstone, and coal deposited by large, meandering stream systems. Individual sandstone layers are typically 25' to 50' thick, fine upward, and are separated by coal, siltstone, and shale barriers. The thickest sandstone bodies of the Sterling consist of amalgamated sand sequences deposited in the central portions of meander belts, and can be in excess of 200' thick. The Sterling sandstones are classified as quartz -rich litharenites that contain little matrix and are slightly cemented with calcite, smectite, and kaolinite. These sandstones are fine- to coarse - grained, angular to subrounded, and moderately well sorted, with porosity ranging from 20% to 35 %, and extrapolated permeabilities ranging from 10 to 1000 millidarcies. The Sterling C sandstones display good reservoir properties and thick, continuous intervening shales (lateral and top seals). They exhibit pressure depletion characteristics with minimal water production (see Finding 13 and Figure 2, below). The proposed interval is an excellent candidate for gas storage. • • Storage Injection Order 9 November 19, 2010 Page 3 of 12 1640140 2040050 501331001400 501332053400 1. 2253 ft 1 UNOCAL MARATHON KENAI UNIT 13-08 CANNERY LOOP UNIT 8 1774 FSL 1034 FWL 208 FSL 486 FEL TWP: 5 N - Range: 11 W - Sec. 8 TWP: 5 N - Range: 11 W - Sec. 7 C.064%.■ .G. Itaa Paroty *maw 0441 Kaa 1.°24 — — 220700201 42P 2.01.00 P2000004 R1400 '''''p 0.40 (40 100 V VV , 0 t , a 72 VW = ea 2 a 6 Ga224 1 .' 72 CHM =1 kb ofaCG 2.Gt Tvoss ...n GA' .,„ :1;1" 12 612 WO P.004 W''F'''' OR Tvo 2.26042221 (FOP 10 CAP . 2.2 62.241 22240 C to ACI • .2 =0 AN C oMO 2222AP21 mr....4.1mi <MD o1c0406 — 4 4114.4.1 1 4)6/2 42 s 00 tr at C , - - - 6700 _ -45on 7:-- — -, =4,.. . , 5°C° 1" al,,i.:0;F:WY , ''''' I'• Atil' ,14 !,'.. . 4, ft*-S um . P r . , „ oposed , ': . t,,iv. 6800 4 1 n leen on . - ..._._ - and ■ 4 f 4, 224 Storage - r,,;i' ,,, ,,,,,, 4603 a - 1111. 5120 , I 11 ter vat 40.441 - _-_.. - , f 44 -oft- k` 7 '1251.64454'2724 saw 0200 ) 40,0 a...,!...:;;., _ ■ --a_ a ___ ..... 4200 ,, .1 . , 20 ....:, - ' 24 ' - 7 ' ■ ,1S,1'1 , Ilik2L4212,22 ,,,, 7000 V , . h, 40 ' t I T. 20 , . . - .Z... ......_ , '' ^ , ■ 2 - - , , 1 1 ---- a ,0 ' , 41 ';;=,. ----, Figure 1. Representative Well Logs for the Proposed Sterling C Gas Storage Pool' I Figure 1 is for illustration purposes only. Refer to the well log measurements recorded in CLU No. 8 for the precise re- presentation of the proposed injection and gas storage interval. The horizontal grid lines in this figure represent increments of ten feet measured depth. The acronym TVD refers to true vertical depth, and the acronym TVDSS refers to true vertical depth subsea (true vertical depth below sea level). • Storage Injection Order 9 November 19, 2010 Page 4 of 12 4. Proposed Injection Wells CINGSA has optimized the number of proposed service wells and well completion designs to meet reservoir deliverability and surface facility design requirements. The program proposes five injection/withdrawal service wells, drilled from a single surface pad. The wells will be directionally drilled from a gravel pad to the west/southwest, to target the prospective gas storage reservoir along the crest of a 4-way dip, structural trap. No wells may be drilled absent a Permit to Drill issued by the Commission. 5. Operators/Surface Owners Notification CINGSA provided an affidavit affirming that all operators and surface owners within one- quarter mile of the storage injection area were notified of CINGSA's subject proposal. 6. Description of Operation CINGSA proposes to develop Sterling C gas storage in phases. Initially, the storage facility is designed to provide 11 billion cubic feet (BCF) of working gas deliverable in approximately ninety days under maximum withdrawal conditions. The required base-gas volume is estimated to be 7 BCF, which will allow the field to operate efficiently to a minimum surface flowing pressure of about 400 psi. Maximum total gas inventory will be limited to 18 BCF initially (11 BCF working gas + 7 BCF base gas), or 68% of the initial gas in place. The storage facility's maximum injection and withdrawal rates will be limited to 150 million cubic feet per day (MMCFD). Simulation indicates that the storage facility should operate at surface pressures ranging from approximately 400 psi to 1450 psi. The facility is designed such that additional storage capacity can he accommodated. 7. Well Spacing To simplify well geometry while providing for maximum drawdown, it may be necessary to space the wells as close as 200' apart. Well completion design will stagger perforations stratigraphically among wells in close proximity to enable each well to drain effectively the storage pore volume within its drainage polygon. Well spacing exceptions will be requested as part of CINGSA's applications for Permits to Drill. 8. Well Logs All logs from existing wells within the CLU were previously submitted to the AOGCC by the field operator. CINGSA intends to acquire logging-while-drilling (LWD) logs in the new injection/withdrawal wells. The minimum logging program will consist of continuous mud logging, gamma-ray for surface and intermediate holes, and triple-combo (gamrna-ray, resistivity, neutron, and density) in the production hole. Cement bond logs will be run on the intermediate and production casings. Once acquired, this data will he filed per AOGCC regulations. 9. Proposed Mechanical Integrity and Well Design All casing strings in new injection/withdrawal wells will be cemented in accordance with AOGCC regulations. An application will be made later with a Permit to Drill for annular disposal of drilling wastes. This will necessitate leaving intermediate casing cement below the surface casing shoe in the subject well. A liner will be run and cemented across the target gas • • • Storage Injection Order 9 November 19. 2010 Page 5 of 12 storage interval and into the intermediate casing. Selective liner perforation will be based on petrophysical analysis of logs to be acquired by LWD across the prospective interval prior to running the production liner. Production liners will include a liner top packer and tie-back seal bore on production tubing to provide isolation/integrity of the reservoir from the annulus. The liner and tubing will utilize - gas tight metal-on-metal premium connections. A hydraulic- actuated wireline retrievable surface controlled subsurface safety valve (SSSV) will be installed. at an estimated depth of 150'. Proposed storage injection/withdrawal wells will be tested for mechanical integrity during completion per 20 AAC 25.412. CINGSA will continue monitoring tubing/casing annulus pressures. Abnormal annular pressure in any well will be followed by actions to isolate the well from reservoir pressure. CINGSA will investigate any abnormal pressure occurrence and perform remedial actions as required. Following corrective action, CINGSA will conduct a mechanical integrity test (MIT), witnessed by a commission representative, to re-confirm well mechanical integrity. 10. Fluid Type and Source CINGSA intends to inject dry natural gas with a typical composition of about 98% methane and specific gravity ranging from 0.56 to 0.58. It is expected that injection gas will generally originate in the greater Cook Inlet region and be transported via the KNPL pipeline. 11. Fluid Compatibility CINGSA provided analysis of gas from various points throughout the Cook Inlet gas pipeline system. Only compatible gas will be injected into the Sterling C Zone. 12. Injection Rates and Pressures, Fracture Information CINGSA plans to operate the storage facility between a maximum and minimum field inventory of 18 BCF and 7 BCF, respectively. This equates to a working volume of 11 BCF. At the maximum storage volume of 18 BCF, material balance (P/Z v. cumulative gas production, Figure 2) indicates an average reservoir pressure of approximate 1521 psi. Modeling indicates that the storage facility will operate at surface pressures ranging from approximately 400 psi to 1450 psi. The injection profile used in the model initiated fill-up at a total injection rate of 150 MMCFD, stepping down to a final rate of 75 MMCFD (for all five wells). The reservoir can thus be filled within a time period of approximately 100 days. The model showed the final injection pressure for individual wells to vary between 1430 psi and 1460 psi. This corresponds to a maximum pressure during injection at the reservoir datum (4966' TVD) of 1610 psi. Even though modeling indicates that a maximum injection pressure of approximately 1450 psi should be sufficient to fill the storage reservoir, actual well perfonnance (due to completion design and efficiency, reservoir heterogeneities, etc.) will likely dictate a higher injection pressure. Leak off tests were performed in wells CLU-8, CLU-9, and CLU-10 below the 9- 5/8 intermediate casing shoes. In these wells, intermediate casing was set just above the proposed Sterling C storage interval. Following cementing operations, approximately 20 feet of new formation was drilled below the casing shoe and leak off tests performed. Average fracture gradient was 0.684 psi/I1 for leak off at the top of the Sterling C interval. This fracture gradient is significantly higher than the proposed Sterling C Gas Pool discovery pressure gradient of • • Storage Injection Order 9 November 19, 2010 Page 6 of 12 0.444 psi/ft. The original discovery pool gradient was obtained from the initial reservoir pressure of 2206 psi (at a reservoir datum of 4966' TVD), measured in well CLU-6. CINGSA intends to operate the Sterling C storage facility below the initial reservoir pressure of 2206 psi. The initial phase of development calls for a maximum storage volume of 18 BCF (as compared to the initial gas in place of 26.5 BCF), which, based upon material balance, equates to an average reservoir pressure of approximately 1520 psi. CINGSA intends to limit injection pressure so that the injection pressure gradient does not exceed 0.5 psi/ft at the reservoir datum of 4966' TVD. This equates to a maximum injection pressure of 2200 psi at surface and 2483 psi at 4966' TVD. 13. Underground Sources of Drinking Water The proposed gas injection reservoir depth is approximately 4900' TVD to 5100' TVD. Aquifer exemption is addressed in a separate commission order (see Aquifer Exemption Order No. 13). CANNERY LOOP UNIT' Sterling C Pool 3000 2500 • - • CLU#6 2000 - '71 1500 Ilk a. 1000 500 0 5.000 10,000 15,000 20,000 25,000 30,000 Cumulative Produced Volume, MMscf Figure 2: P/Z plot of Cannery Loop Sterling C Reservoirs 14. Mechanical Condition of Pool Wells Three wells (CLU-06, CLU-08 and CLU-12) within the field require remedial work to isolate the Sterling C storage interval. Remedial procedures will be jointly developed between • • Storage Injection Order 9 November 19, 2010 Page 7 of 12 CINGSA and Marathon. All necessary well remediation will be conducted in compliance with Commission regulations before injection will commence. In accordance with existing Commission regulations, KU 13-8 (1964, Unocal exploratory well) was plugged and abandoned with a cement plug set from 1000' to 1270'. The 8-5/8" casing shoe (in 12 1/4 hole) is set at 1159' and cemented in place. 7-5/r hole was drilled to 5506'. The 7-5/8" well bore was not cased. A sundry reports that this well was left with a 4 foot standpipe and placard marking the abandoned location. CINGSA's investigations have shown that the pipe / marker have since been cut off and plugged, and the well casing stub is now buried below grade. Through recent land and magnetometer surveying efforts, CINGSA has located what appears to be the buried casing. Drilling and completion activity on CLU-12 (2006, Marathon development well) was suspended when the Beluga objectives were apparently found to be non-viable. The deeper portion of the well was abandoned with numerous cement plugs, leaving the shallower portion of the well as a sidetrack candidate. The 9-5/8" casing shoe (in 12 1/4" hole) is set at 7259' and cemented in place. 8-1/2" hole was drilled to 10415'. The 8-1/2 hole section was not cased. The lower portion of the Sterling C interval and the upper Beluga are not isolated. Remedial procedures which comply with Commission regulations will be jointly developed between CINGSA and Marathon and approvals gained to allow for re-entry to drill out plug #3 and cement from the top of plug #2 into the 9-5/8" casing. This work will insure isolation of the Sterling C interval in this well for gas storage integrity and will be completed as a prerequisite to gas injection. 15. Monitoring Individual storage injection/withdrawal wells are designed to operate at a maximum rate of approximately 50 MMCFD. To manage risk, CINGSA will install a surface controlled subsurface safety valve (SSSV) in each well. CINGSA will also install a Supervisory Control and Data Acquisition (SCADA) system for the well pad. The SCADA system will include the ability to monitor the pressure, temperature, and gas flow rate at each injection/withdrawal well from a central control room located in the compressor station. Each of the 6" well lateral flow lines and the 16 gathering header will include actuator-equipped isolation valves that will enable each lateral and the gathering header to be shut-in from the well pad gate as well as from the central control room. CINGSA will monitor daily injection and withdrawal rates and pressures to validate mechanical integrity through material balance monitoring. The Sterling C gas pool has followed a classic P/Z depletion drive curve (Figure 1), indicating no subsurface communication. Forward monitoring of pressures and volumes will provide an additional check on integrity, where data from primary depletion can be compared with data from subsequent injection/withdrawal cycles, 16. Public Comment IFP submitted written objection to CINGSA's Cannery Loop gas storage proposal. presented oral testimony at a Commission public meeting on September 1, 2010 and at a Commission hearing on October 19 and 20, 2010 and submitted written exhibits during the hearing on October 19 and 20, 2010 and on October 27, 2010. IFP offered testimony and exhibits through two witnesses, Vincent Goddard and Dr. John 0. Robertson. Mr. Goddard runs a fish Storage Injection Order 9 • • November 19, 2010 Page 8of12 processing business. Dr. Robertson was qualified to testify as a petroleum engineer. Mr. Goddard's testimony included technical information in geology, geophysics and petroleum engineering. Given Mr. Goddard's lack of expertise in any of these technical areas, the Commission finds his testimony on those matters lacks credibility. Dr. Robertson was qualified to testify as an expert in the area of petroleum engineering. However, the bulk of Dr. Robertson's testimony was offered on the subject of geology and geophysics, areas in which he was not qualified as an expert. As a result, the Commission believes his testimony on those topics lacks credibility. To the extent Dr. Robertson's testimony was in direct conflict with the testimony of experts offered by CINGSA, the Commission finds the testimony of the experts offered by CINGSA to be more credible than that offered by Dr. Robertson. CONCLUSIONS: Based upon the evidence and testimony presented, the Commission concludes as follows: 1. The proposed Sterling C Gas Pool storage project meets the requirements of 20 AAC 25,252. However, prior to submission of any application for a Permit to Drill, CINGSA must obtain a gas storage lease and assume operatorship of the proposed gas injection and storage reservoirs within the CLU. 2. There are no compatibility concerns between injected gas and native gas in the proposed Sterling C Gas Storage Pool. 3. Construction records, easing and cementing records, cement bond logs and witnessed mechanical integrity tests will demonstrate the mechanical integrity of proposed injection storage wells and demonstrate that fluids will not move behind casing beyond the gas storage zone. 4. Prior to commencement of any injection activities, CINGSA will demonstrate to the satisfaction of the Commission that all existing pool wells have been appropriately remediated. 5. The proposed injection and storage operations will be conducted in permeable strata, which can reasonably be expected to accept injected fluids at pressures less than the fracture pressure of the confining strata. 6. The injection of natural gas into the proposed Sterling C Gas Storage Pool will not propagate fractures through the confining zones. 7. Aquifer Exemption Order No. 13 separately addresses exemption of aquifers within the project area. 8. Surveillance of operating parameters for storage and offset wells will provide continued assurance that stored gas remains confined to the proposed Sterling C Gas Storage Pool. 9. Limiting the reservoir pressure to 1700 psi for natural gas storage in the proposed Sterling C Gas Storage Pool will insure that storage reservoir pressure remains below original reservoir pressure. 10. The proposed injection of natural gas into the proposed Sterling C Gas Storage Pool for the purpose of storage will not cause waste, jeopardize correlative rights, endanger freshwater, or impair ultimate recovery. Storage Injection Order 9 • November 19, 2010 Page 9of12 NOW THEREFORE IT IS ORDERED that the following rules, in addition to statewide requirements under 20 AAC 25, apply to the underground storage of hydrocarbons by injection operations in the proposed Sterling C Gas Storage Pool, in the affected area described below: Seward Meridian Township 05N, Ranee 11W SW 1 /4 -SW 1 /4 of Section 4 W 1 /2- SEl /4 -SW1 /4 of Section 4 S3 /4 -N W l /4 -SW 1 /4 of Section 4 S 1 /2 -SE 1 /4 of Section 5 S3 /4- NE1 /4 -5E1 /4 of Section 5 S1 /2- NW1 /4 -SE1 /4 of Section 5 S1 /2- NE1 /4- NW1 /4 -SE1 /4 of Section 5 E1 /2- SE /14 -SW1 /4 of Section 5 SE1/4- NE /14 -SW1 /4 of Section 5 E 1 /2 -E l /2 -SE 1 /4 of Section 7 E1 /2 of Section 8 SW 1 /4 of Section 8 S 1 /2 -NW l /4 of Section 8 E1 /2- NE1 /4 -NW1 /4 of Section 8 S W 1 /4 -N E 1 /4 -NW 1 /4 of Section 8 SE1 /4 -NWI /4 -NWI /4 of Section 8 W3 /4 -NW 1 /4 of Section 9 N /2 -NW 1/4 -SW 1 /4 of Section 9 SW I /4- NW1 /4 -SW1 /4 of Section 9 N W 1 /4 -S W 1 /4 -S W l /4 of Section 9 N3 /4 -W l /2 -NE 1/4 of Section 17 N3 /4 -W 1 /2 -E 1 /2 -NE l /4 of Section 17 N3 /4 -E 1 /2 -NW 1/4 of Section 17 NWI /4 -NWI /4 of Section 17 NE1 /4- SW1 /4 -NW1 /4 of Section 17 N1/2-NW 1 /4 -S W 1 /4 -NW1 /4 of Section 17 NE1 /4- NE1 /4 -NE1 /4 of Section 18 NE1/4- SE1 /4- NE1 /4 -NE1 /4 of Section 18 RULE 1: STORAGE INJECTION The Commission approves injection for storage of natural gas in the CLU within the interval identified in Rule 2 (below), which constitutes a gas storage pool named the Sterling C Gas Storage Pool. RULE 2: POOL DEFINITION The Sterling C Gas Storage Pool consists of the interval within the Affected Area that is common to, and correlating with, the measured depths from 6690' to 6945' in well CLU No. 8. • Storage Injection Order 9 November 19, 2010 Page 10 of 12 RULE 3: GAS DETECTION CINGSA shall install, operate and maintain a gas detection and alarm system in all buildings located within 50 feet of the surface location of well KU 13-08, unless prohibited from doing so by either the owner or the lessee of the land upon which KU13-08 is located. RULE 4: WELL REMEDIATION CINGSA shall demonstrate that any wells in the pool meet all Commission requirements for hydrocarbon production wells, or that the wells have been suspended or abandoned in accordance with applicable requirements. RULE 5: DEMONSTRATION OF MECHANICAL INTEGRITY The mechanical integrity of proposed storage injection wells and existing pool wells must be demonstrated before injection begins, and before returning any well to service following a workover affecting mechanical integrity. A Commission-witnessed mechanical integrity test must be performed after injection is commenced for the first time in any well, to be scheduled when injection conditions (temperature, pressure, rate, etc.) have stabilized. Subsequent tests must be performed on each storage injection well at least once every four years thereafter. The Commission shall be notified at least 24 hours in advance of a test. Unless an alternate means is approved by the Commission, mechanical integrity must be demonstrated by a tubing/casing annulus pressure test using a surface pressure of 1,500 psi or 0.25 psi/ft multiplied by the vertical depth of the packer, whichever is greater. Stabilizing pressure that does not change more than 10 percent during a 30-minute period is required for a valid test. Results of all mechanical integrity tests must be provided to the Commission. RULE 6: WELL INTEGRITY FAILURE AND CONFINEMENT The operator shall maintain a continuous data acquisition system to record flow rates and pressures on all active wells in the field. Field personnel must perform daily visual inspections and maintenance of all active wells and production equipment. Whenever any pressure communication, leakage or lack of injection zone isolation is indicated by injection rates, operating pressure observations, tests, surveys, logs, or other evidence, the operator shall notify the Commission by the next business day and submit a plan of corrective action on a Form 10-403 for Commission approval. The operator shall immediately shut in the well if continued operation would be unsafe or would threaten contamination of freshwater, or if so directed by the Commission. RULE 7: MAXIMUM RESERVOIR PRESSURE The reservoir pressure for this project shall be limited to a maximum of 1700 psi. RULE 8: PERFORMANCE REPORTING The Operator shall report disposition of production and injection as required by 20 AAC 25.228, 20 AAC 25.230, and 20 AAC 25.235. An annual report evaluating the performance of the storage injection operation must be provided to the Commission no later than March 15. The report shall include material balance calculations of the gas production and injection volumes and a summary of well performance data to provide assurance of continued reservoir confinement of the gas storage volumes. Additional data collection and analysis will be based on a review of the operating Storage Injection Order 9 • • November 19, 2010 Page 11 of 12 performance and could include temperature surveys, pressure surveys, and production logs. RULE 9: OTHER CONDITIONS a. It is a condition of this authorization that the operator complies with all applicable Commission regulations. b. The Commission may suspend, revoke, or modify this authorization if injected fluids fail to be confined within the designated injection strata, or for any other violation of the law. c. As provided in 20 AAC 25.252(j), if storage operations are not begun within 24 months after the date of this Order, the injection approval shall expire unless an application for extension has been approved by the Commission. RULE 10: ADMINISTRATIVE ACTIONS Unless notice and public hearing are otherwise required, the Commission may administratively waive or amend any rule stated above as long as the change does not promote waste or jeopardize correlative rights, is based on sound engineering and geoscience principles, and will not result in fluid movement outside of the authorized injection zone. DONE at Anchorage, Alaska and dated November 19, 2010. OIL 11 3. 41," 1.11/44 . A Tor Daniel T. Seamout2t, .fir., Chair 41, t -, AIaska Oil and Gas Conservation Commission Cathy P. oerster, Commissioner Alaska ail and Gas Conservation Commission • Storage Injection Order V • November 19. 2010 Page 12 of 12 RECONSIDERATION AND APPEAL NOTK'E M provided in AS 31.05.08000, *N/in 20 days after written notice of /|e entry of ki order or dzisi"^ such further nine as the, Commission grants for good . by may `. —�� ' matter — -- by it. ![k*ww�, was nmikd.o`m�*,o"d shall m23days, ^n application for reconsideration MIN *u out the ^xpec/in which the order m decision is believed x`^xerroneous, The Commission shall grant w' refuse the application hv reconsideration in whole v,io part within m days alter kixfiled. Failure * act nnitwithin |0-dxysba denial "f rep/nsidwnd^o. lithe Commission (Jellies reconsideration, upon denial. this order m decision and the denial "f reconsideration are FINAL and may h appakd to superior cturt, The appeal MUST xe tiled within oa days alter the date "o which the (*mnimiw` mails. oRoo days lithe Commission w`rnvwdistributes. thu order ", decision denying reconsideration, UNLESS the denial is by inaction. invhie^ ease the ap- peal NUoTbe tiled within "m days olba the date .w which the application |x, reconsideration was filed. /y the Commission grams *` application for xxw^io,mh'm. this order .* decision does not kw=final. Rather, the order ", decision .v`^ec'msW, ration will |= the FINAL order ur decision o[ the Commission. and h may h, appealed That appeal MUST ^c filed within 33days after the date on which the Commission mails, ORo0 days K the [.nvmissivn otherwise distributes. the order r decision "vreconsideration. As proided in AS 3|.o5/N(01. "ION questions *.^p cc! "" appeal are limited w the questions presented wthe Cvinm|cimk) the application for o' ' consideration.- m computing `/ time above. the date "[ the event '* default after which the designated period begins to .v"i, not included m the period, the last day (lithe period i, included. unless it falls '`n° weekend "rstate holiday. in which evem Ibe perind runs unlil ;Q0 prn. on he neI day Ihat does not fall onu weekend m state holiday. farb 2-11 -/ r 1 r,'� °�I° „ I -1° - TECH MANUAL m TECH 7.06 5M EG DUAL COMBI BOP REFERENCE REFERENCE DESCRIPTION This document contains proprietary and confidential information TEXAS OIL TOOLS which belongs to National- Oilwell Varco, L.P., its affiliates or 700 Conroe Park North Drive subsidiaries (all collectively referred to hereinafter as "NOV"). It is loaned for limited purposes only and remains the property of NOV. Conroe, TX 77305 Reproduction, in whole or in part, or use of this design or Phone 936- 520 -5300 distribution of this information to others is not permitted without the Fax 936-756-8102 express written consent of NOV. This document is to be retumed to NOV upon request and in any event upon completion of the use for which it was loaned. This document and the information contained and represented herein is the copyrighted property of NOV. © National Oilwell Varco DOCUMENT NUMBER REV TECH - 1337 -MAN U 9 Texas Oil Tools® www.nov.com • TECH - 1337 -MAN Rev / U Page 12of37 REVISION HISTORY U 14//Nov/2011 Revision CP MW CN T 03/Nov/2011 Revision CP MW CN R Sept 2010 Revision CP N/A MW P Sept 2010 Revision CP N/A MW M Aug 2008 Revision N/A N/A N/A L Dec 2007 Revision N/A N/A N/A K March 2006 Revision N/A N/A N/A J Sept 2005 Revision N/A N/A N/A H June 2005 Revision N/A N/A N/A Rev Date (dd.mm.yyyy) Reason for issue Prepared Checked Approved CHANGE DESCRIPTION Revision Change Description H Rod crown seal part number 7863 -1329 to 1328 Added pipe size 2.625 J Replace npt holes with sae thread K Added new shear /seal ram assembly L Revised dwg EG72 -TS88X M Revised dwg EG72 -T004; added routine inspection N Changed part number on cylinder flange to body port o -ring Changed pipe size 2 3/8 — 3 % to 2 5/8 — 3 1/2 R Added assembly numbers for equalizing valve and added seal kit; corrected part # for geothermal H seal T Added B suffix to items 4,5,6, 7,13,21,22,23, 30,60,60a,61,61 a,63,63a,82,82a,85,85a, 86,87, 87a,88,88a, 89 EG72 -N72S BOM U Added PP suffix to 2.375 pipe slip insert(AII slip inserts HSN 2.375 -3.50 have PP suffix) www.nov.com 0 Texas Oil TOOTS® • fECH-1337-MAN Rev/ U Page 14 of 37 7.06, 5M COMB! BOP 1.0 OPERATION AND INSTALLATION This dual 7 5,000 psi ram combi blowout preventer is designed for coiled tubing operations. The ram BOP is a hydraulically operated unit equipped with external mechanical locks. The external mechanical locks provide a visual piston position indicator which makes it easy to check rams to see if they are open or closed. The hydraulic operating system is internally ported and has a small external tube running along each cylinder. The preventer's hydraulics are factory tested to 4500 psi. The BOP is reliable, light-weight, compact, and versatile with a long service life. It weighs 2,800 lbs., is 22.5" inches tall, and able to accommodate various ram configurations. The four bolt configuration on the side plate eliminates the expense of a hinged bonnet and enables the ram blocks to be quickly and easily changed. Ram removal: Hydraulically retract the rams to the "open" position, remove four (4) nuts per side plate, remove the side plates and change the rams. The hydraulic seals are standard, and the secondary emergency plastic injection seal provides safe backup. Studded side outlets are located on one side of the BOP. The ram assemblies are available for pipe sizes from blind to 5 O.D. pipe. This technical manual provides the installation, operation, and maintenance procedures for the 7 5,000 psi Texas Oil Tools blowout preventer. The high standards that go into all Texas Oil Tools products have not been sacrificed by the simple design, operation and ease of maintenance. The workover ram preventer has been analyzed using finite element stress analysis and hydrostatic tested to meet and exceed the highest API standards. The combi blowout preventer is designed specifically for coiled tubing operations. The "combi" design Texas Oil Tools product is a combination pipe slip ram with a combination shear seal ram. The normal functions of the conventional quad coiled tubing BOP are combined into two sets of rams and actuator. The shear seal actuator has a larger diameter piston therefore booster cylinders are not required. The rams have sheared 3.50" coiled tubing and 2 wt. L-80 tubing. A chart can be found on page 7 for shear values. The pipe slip ram is a unique design that has the slip insert molded into the front seal This reduces the number of parts required and always insures the slips and front seals are the same size. wvvw.nov.com Texas Oil Toe • III TECH - 1337 -MAN Rev / U Page 15of37 N 416 46 e' 4t V (2 1 .1 %, i) Opening Chamber ® � ; • ' .. iiiiii % ..., „iiir s oif 0 0 0 0 • 1 iiiiioll'4aj P r P, ) \ , , i ,0 01 1 . . ‘ il '71 : I 1 I I I I I I I I I b .f - a 1 1111111. iti . (11 ifr2 1 iv wi...._,, iiiir , , ,\IP,.., - ■-qiq ile o t A t e .---Nt. Closing Chamber ■,� hi& a :ITO a k .4 ,.% - ' 1 to , ,I, 40 0 40 740._,, ) 00 . i , Ti-- 4.0 ti External Manual Lock - The external manual type lock is shown in the locked and unlocked position in the figure below. The external manual lock can be set after the ram has been hydraulically closed to maintain and ensure a mechanical lock and seal. Clockwise rotation of the external manual lock locks the ram and counter - clockwise rotation unlocks it. The ram can also be closed manually by this method should a failure of the hydraulic system occur. When the ram is open, clockwise rotation of the manual lock closes the ram and locks it, however, the ram must be opened hydraulically after it has been manually unlocked. The screw on the manual lock uses a right hand heavy -duty Acme type thread. The external manual lock/piston rod provides visual indication of the position of the rams. www.nov.com 0 Texas Oil Tools. • • TECH -1337 -MAN Rev / U Page (6of37 Installation - The Texas Oil Tools combi ram blowout preventer is a hydraulically operated ram type BOP as described in API RP 53 entitled "Recommended Practice for Blowout Prevention Equipment Systems for Drilling Wells ". The BOP must be installed right - side -up. Externally, the BOP is marked "TOP" on the body. Internally, the skids in the ram compartments are below the rams, and the ram sealing seat is located in the top of the compartment. Each outlet is below the ram assembly and is a full 2 /t6" bore - used for choke and kill lines. Four (4) 3 /4 -inch NPT ports on the opposite side of the outlets are provided for the connection of the hydraulic system. Heavy duty lifting brackets are provided for easy handling in the shop or in the field. Pipe Ram Guides Du Lifting Bracket Drill Pipe, Tubing Heavy - and Coiled Tubing for lifting ease of BOP Stud x Stud Dual Body Provides lightweight N.. andoanpeot\ o ` _, \ �� = r External Mechanical 1-1101111. 1:: . . .I" i , �� Looking Shaft provides simple and secure look -in s � 0 , II., ,0/''''' % lc; 0 '4 il L1 40 001" ,..- ,rcit7i , i 1, „ % 1 11 10111W re, .400,Ilit fro .. , 1111.,.. 1 " ;... 11117.- 4ISts.. a elbo 0 , 10.01110 1 '.,: '' 1 40 ✓ ec Four Side Plate Bobs ��N �j ) �� for quick y Ram change so Simple Hydraulics Vendors _ endors for fast b., t One-Pieoe Ram block for Ram hail Position =vie cability strength can be determined by visually separate front Ram Rubbers inspecting the slotted looking and Top Seals Shaft Housing Sloped Ram mmil t prevails aoo drilling mud Secondary Bmergenoy Plastic Injection Seal provides cmcrgency back -up for Primary Ram Ram Shaft Seal Shaft Seal Dual Lip Seals provide long life durable seals www. nov.com 0 Texas Oil TOOTS® • 0 TECH - 1337 -MAN Rev /U Page I7of37 Bolting & Gaskets Reference drawing EG72 -T006 7.06 5M R -46 STUDDED FLANGE lam 1 ■ii Ii.lit ,: N4 /TOP a ■ 19 ! - 11 ° ■ a el MEM 2.06 5M R -24 STUDDED SIDE OUTLETS illm 0,, ww■iii.1 lip 0 ,r-r., --c) i ili .,.. _ ____ _ , 0 =s e • - =.-- _ 00=4 • C 0 ) :_, :_ ice' ' 0 4 ' E ® ®'r 1 _ �1 ∎:,_ � " oc) I 0 10 i,il�' _ '�m' Q � O CLO ® ® _ A , o _ & `U 7,06 5M R -46 STUDDED FLANGE EG72 -1006 www.nov.com 0 Texas Oil Tools. • TECH - 1337 -MAN Rev / U Page 18of37 2.0 PHYSICAL DATA Reference drawing EG72 -T004 Blowout Operating Data Nominal Sizes (in.) 7 179mm Working Pressure (psi) 5000 345 Bars Working Pressure Between Sealing Rams (psi) 6,500 448 Bars Operating Vertical Bore (in.) 7 179mm Cylinder Bore (in.) 5.00 127mm Volume to Close (1 Set) (Pipe Slip) 164.7 cu. 2.70 Liters in. Volume to Open (1 Set) (Pipe /Slip) 161.0 cu. 2.64 Liters in. Volume to Open (1 Set) (Shear /Seal) 400.6 cu.in. 6.57Liters Volume to Close (1 Set) (Shear Seal) 404.3 cu. 6.63 Liters in. Closing Ratio (Pipe Slip) 6.25:1 Closing Ratio (Shear Seal) 14.7:1 Piston Stroke to Close 4.88 124mm Normal Hydraulic Closing Pressure (psi) 1,500 103.5 Bars Maximum Hydraulic Operating Pressure (psi) 3,000 207 Bars Hydraulic Connections ❑" NPT Manual Lock Turns to Close 23 Approximate Wt. /Ibs. 2,800 www.nov.com 0 : Texas Oil Tools • sirginiE A[LnsEn SEAN PARNELL, GOVERNOR ALASKA OIL .AND GAS 333 W. 7th AVENUE, SUITE 100 CONSERVATION COMMISSION ANCHORAGE, ALASKA 99501 -3539 PHONE (907) 279 -1433 FAX (907) 276 -7542 M. Colleen Starring Vice President Cook Inlet Natural Gas Alaska, LLC P.O. Box 190989 Anchorage, AK 99519 Re: Cannery Loop Field, Sterling C Pool, CLU Storage 1 Cook Inlet Natural Gas Alaska, LLC Permit No: 211 -149 (revised) Surface Location: 520' FNL, 1764' FEL, SEC. 9, T5N, R11W Bottomhole Location: 571' FSL, 1592' FEL, SEC. 5, T5N, R11W Dear Ms. Starring: Enclosed is the approved application for permit to drill the above referenced service well. This permit supersedes and replaces the permit previously issued for this well dated November 16, 2011. 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. Sincerely, 1 i i ,,� �t \ -4,- Daniel T. Seamount, Jr. Chair DATED this a day of December, 2011. cc: Department of Fish & Game, Habitat Section w/o encl. (via e -mail) Department of Environmental Conservation w/o encl. (via e-mail) • • Fisher, Samantha J (DOA) From: Seamount, Dan T (DOA) Sent: Friday, December 09, 2011 11:17 AM To: Fisher, Samantha J (DOA) Subject: Re: PTD CLU Storage 1 Approved Sent from my iPhone On Dec 9, 2011, at 1:56 PM, "Fisher, Samantha J (DOA)" <samantha.fisher @alaska.gov> wrote: > Please review and approve. > Thank you > Samantha Fisher, Executive Secretary II > Alaska Oil and Gas Conservation Commission > (907) 793 -1223 > <S45C- 211120911500.pdf> 1 RECEIVED STATE OF ALASKA All �SKA OIL AND GAS CONSERVATION COOSSION DEC ��( 0 7 2 O1 jam // PERMIT TO DRILL 1CA 20 AAC 25.005 108Sklt ::5, :I Gag Long. COn"I1fiSSin la. Type of Work: lb. Proposed Well Class: Development - Oil L] Service - Winj ❑ Single Zone l lc. Specify i ❑ p fy itlF�tsed for: Drill o Redriil ❑ Stratigraphic Test ❑ Development - Gas ❑ Service - Supply o Multiple Zone 112 Coalbed Gas ❑ Gas Hydrates ❑ Re -entry ❑ Exploratory ❑ Service - WAG ❑ Service - Disp ❑ Service - Gstor o Shale Gas ❑ 2. Operator Name: 5. Bond: Blanket p Single Well ❑ 11. Well Name and Number: Cook Inlet Natural Gas Alaska, LLC Bond No. k O' Lvlst -.r CLU Storage 1 3. Address: 6. Proposed Depth: 12. Field /Pool(s): P.O. Box 190989, Anchorage, AK 99519 MD: 9807 TVD: 5,166' Cannery Loop/ Sterling C pool 4a. Location of Weil (Governmental Section): NAD 27 7. Property Designation (Lease Number): Surface: 520' FNL 1764 FEL SEC. 9 T5N R11W ADL 391627 Top of Productive Horizon: 7,618' MD / 4,934' TVD 8. Land Use Permit: 13. Approximate Spud Date: 1417' FNL 697 FEL SEC. 8 T5N R11W ADL 230925 11/26/2011 Total Depth: 9,807 MD 15,166' TVD 9. Acres in Property: 14. Distance to Nearest Property: 571' FSL 1592' FEL SEC. 5 T5N R11W 1272 207' 4b. Location of Well (State Base Plane Coordinates - NAD 27): 10. RT Elevation above MSL: 53.5 feet 15. Distance to Nearest Well Open Surface: x- 281844.60 y- 2393032.28 Zone- 4 GL Elevation above MSL: 33 feet to Same Pool: 526 feet (CLU -6) 16. Deviated wells: Yes Kickoff depth: 1000' feet 17. Maximum Anticipated Pressures in psig (see 20 AAC 25.035) Maximum Hole Angle: 86 degrees Downhole: 2,212 Surface: 1,766 18. Casing Program: Specifications Top - Setting Depth - Bottom Cement Quantity, c.f. or sacks Hole Casing Weight Grade Coupling Length MD TVD MD TVD (including stage data) Driven 20" 133 X56 PE 95' 0 0 115.5' 115.5' N/A 16" 13 3/8" 68 J -55 BTC 2,940' 0 0 2,940' 2,623 784sxs lead / 277 sxs tail 12 1/4" 9 5/8" 40 L -80 BTC 7,563' 0 0 7,563' 4,932' 521 sxs lead /196 sxs tail /486 2nd stg 8 1/2" 7" 26 L -80 VamTop 2,444' 7,363 4,887 9,807 5,166' 315 sxs 9 5/8" stage collar @3,375'MD 1 19. PRESENT WELL CONDITION SUMMARY (To be completed for Redrill and Re -Entry Operations) Total Depth MD (ft): Total Depth TVD (ft): Plugs (measured): Effect. Depth MD (ft): Effect. Depth TVD (ft): Junk (measured): Casing Length Size Cement Volume MD TVD Conductor /Stru ctural Surface Intermediate Production --- Liner �r Perforation Depth MD (ft): - ■ Perforation Depth TVD (ft): "'-_______ 20. Attachments: Property Plat ❑ BOP Sketch ❑ Drilling Program ❑ Time v. Depth Plot ❑ Shallow Hazard Analysis 0 Revised Directional Program. Diverter Sketch ❑ Seabed Report ❑ Drilling Fluid Program ❑ 20 AAC 25.050 requirements ❑ 21. Verbal Approval: Commission Representative: Date 22. 1 hereby certify that the foregoing is true and correct. Contact Printed Name M. Colleen Starring Title Vice President Signature f I r �� Phone 907 - 334 -7659 Date f Commission Use Only Permit to Drill API Number: Permit Approval See cover letter for other Number: aflJ 50�/ 0boacODO Date: , I I 'VW I 1 requirements. Conditions of approval : If box is checked, well may not be used to explore for, test, or produce coalbed methane, gas hydrates, or gas contained in shales: Other. C `c Samples req'd: Yes ❑ No ©" Mud log req'd: Yes ❑ No 2". a7� S t Z (1.-- C 5"� H measures: Yes ❑ No KY Directional svy req'd: Yes ,[2] No ❑ APPROVED BY THE COMMISSION ' !e'` ' � -f� DATE: I q I I COMMISSIONER ORIGINAL Form 10 (Revised 7/2009) This permit is valid for 24 months from the date of approval (20 AAC 25.00518)) Submit in Duplicate - -.3 ._. .. ... ..J ......--- -- _,.... is it.,_ -L11 -1aYS2 1 < 1,692' - 1 -11 - LU ; ............ _LII L1 }_T 14 I 77 I ■ LI I- C. LII„ • p: -13,= 1.— I -.r LII:a P -- " , -...........,c L11 -10 - 1`�`ctli 71 0 • • I I • z TD r- I~ NAD27ASPZONE4 'n d' GRID N:2394208.221 0 GRID E:276748.510 H 'f= LATITUDE: 60 °32'51.615" 2 1 2 LONGITUDE: -151 °14'24.582" 1592' FEL z y---I Z U) 10 . . N SECTION LINE SECTION 5 T5N R11W SECTION 8 T5N R11W 8 9 • • I I I SURVEY CONTROL 1) BASIS OF GEODETIC CONTROL AND NAD83 POSITION 4._ _____ (EPOCH 2003) IS STATE OF ALASKA DEPARTMENT OF TRANSPORTATION & PUBLIC FACILITIES SURVEY N OR TH CONTROL AKSAS PROJECT NO. 58703 BENCHMARK 601 " ALASKA STATE PLANE COORDINATES (ASP) ZONE 4 ARE: -.(.� N= 2393464.742 E= 1422055.815 SCALE 2) BASIS OF VERTICAL CONTROL IS ADOT BM 601 LOCATED 0 500 1000 AT BRIDGE ACCESS RD. BEAVER LOOP RD. INTERSECTION I I FEET I I ELEV.: 42.20 FT. NAVD88. REVISION: - Cook Inlet Natural Gas CINGSA CLU STORAGE 1 DATE: 12/07/11 STORAGE P.O. BOX 190288 PROJECT REVISED TD LOCATION DRAWN BY: BOB ANCHORAGE, AK 99519 SURFACE LOCATION DIAGRAM NAD 27 SCALE: r'50°' PROJECT NO. 103049 BOOK NO. - ENGINEERING I MAPPING / SURVEYING / TESTING / \ Con:sulting Inc P.O. BOX 469 SOLDOTNA, AK 99809 LOCATION SEC. 8 T5N RI 1 W SHEET VOICE: FAX. (907) 283-3265 SEWARD MERI ALASKA 1 EMAIL: L: SAM SAM 34218 CLANE FAX ECG.CG.COM OF 1 Planned Well • ath Geo • ra • hic Re • ort Report Generit d 07 -Dec -11 at 01:06:03 Projection System WINNIONIIIMISMIlat NAD83 / TM Alaska SP, Zone 4 (5004), US feet Operator CINGSA (Cook Inlet Natural Gas Storage Alaska) North Reference IIIIIIIIIIIIII True Area Cook Inlet, Alaska (Kenai Peninsula) Scale 0.999954 Field Cannery Loop Unit (NAD83) Horizontal Referenctillit Slot Facility Gas Storage Pad Vertical Reference Point 1111111111111111111111111, Nabors 105E (RTE) Slot ; Slot #1 MD Reference Point Nabors 105E (RTE) Well CLU Storage 1 Field Vertical Reference Mean Sea Level Wellbore IIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIMIF CLU Storage 1 Nabors 105E (RTE) to Pad Elevation estimated 53.55 ft Wellpath CLU Storage 1 Projected Version #2 Nabors 105E (RTE) to Mean Sea Level 53.55 ft Wellbore La °t Revise 12/06/2011 Pad Elevation estimated to Mud Line (Facility) 0.00 ft Sidetrack from :dam°'_: (none) Section Origin X _ E 0.00 ft User ' Jonethoh Section Origin Y N 0.00 ft Calculation method' d -- • Minimum curvature Section Azimuth ' • , ,- 27526° . Local North - Local East Grid East Grid North Latitude Longitude [ft] [ft] [US ft] [US ft] Slot Location 4765.41 8782.50 1421864.77 2392794.42 60 °32'38.916 "N 151 92'50.288"W Facility Reference Pt 1412992.83 2388198.60 60 °31'52.018 "N 151 °15'45.884 "W Field Reference Pt 1412992.83 2388198.60 60 °31'52.018 "N 151 °15'45.884 "W TVD from MD Inclination Azimuth TVii Fld Ref North East Grid East Grid North Latitude lohol000doo DLS Toolface Build Rate Turn Rate Vert Sect Comments [ft] [°1 1 1 inn [ft] [ftl Iftl NS ft] [US ft] 1 "11008] [°] [/1 00ft] [°/100ft] [8] 0.00 0.00 221.84 0.00 -53.55 0.00 0.00 1421864.77 2392794.42 60 °32'38.918"N 151 ; 0.00 - 138.38 0.00 0.00 0.00 As Drilled Surveys 206.00 0A2 _ 22124 20100 152.45 -026 -0.50 142186428 239279327 60 °3238.911 "N 151 °12'50.x; 0.20 -4420 0.20 0.00 145 As Drilled Surveys _ 29100 023 20421 29729 244.44 -128 -024 142186321 2392793.18 60 °3238.904 "N 151 ° 1250.307"W 028 -2031 0.23 -1829 0.82 As Drilled Surveys 38100 023 198.10 382.99 329.44 -236 -1.35 142186138 239279209 60°3238.893"N 151 °12'50315 037 176.20 0.35 -7.89 113 ; As Drilled Surveys 472.00 0.15 350.02 471.98 418.43 -223 -1.59 1421883.12 2392791.52 60 32'38.88TN 151 °12'50. 1 120 32.08 -0.88 170.70 132 As Drilled Surveys 563.00 0.72 15.73 56228 509.43 -2.28 -1.46 142186327 2392792.19 60 °32'38.894 "N 151 °12'5031 0.65 22.72 023 28.25 125 As Drilled Surveys 653.00 1.02 22.63 652.97 599.42 -0.98 -1.00 1421883.78 2392793.48 60 °3738.907 "N 151 °12'50. r ; 0.35 -14.58 0.33 7.87 0.90 As Drilled Surveys - _ _ 741.00 1.22 20.20 740.95 687.40 0.83 -0.37 1421864.41 2392795.05 80 °3738.922 "N 151 °12'50.2' : 0.23 44.74 0.23 -2.78 0.43 As Drilled Surv . 831.00 1.31 23.98 830.93 777.38 2.47 0.38 1421865.19 2392796.88 60 °3738.940 "N 1519750.281 0.14 - 187.12 0.10 4.20 -0.15 As Drilled Surveys Drilled Surveys - 926.00 0.70 _ 241.52 925.92 87237 3.18 0.31 1421885.14 2392797.59 60 °32'38.948 "N 151 °1750.282"W 2.01 -19.22 -0.84 149.98 -0.02 , As 1022.00 2.34 227.95 1021.89 968.34 1.59 -1.86 1421863.14 2392796.04 _ 60 °32'38.932 "N 151°1750.321 1.74 15.38 1.71 -14.14 1.80 lAs Drilled Surveys 1118.00 3.46 233.00 1117.76 1084.21 -1.47 -5.43 1421859.31 2392793.05 4 60 °32'38.902 "N 151°12'50.397 1.20 11.96 1.17 5.28 5.27 B As Drilled Surveys 1214.00 8.12 238.24 1213.42 1159.87 -5.91 -12.10 1421852.57 2392788.74 60 °32'38.858 "N 1519250.530 2.81 2.70 2.77 5.46 11.51 As Drilled Surveys ._ 1309.00 9.69 239.24 1307.50 1253.95 -12.66 -23.28 1421841.28 2392782.19 60 °32'38.791 "N 1519250.754"W 3.76 -0.62 3.76 1.05 22.02 As Drilled Surveys _ 1405.00 13.04 239.08 1401.81 1348.06 -22.36 -39.52 1421824.85 2392772.79 1 60 °32'38.696 "N 1519231.07; ' 3.49 3.98 3.49 -0.17 37.30 As Drilled Surveys 1500.00 15.99 239.82 1493.58 1440.01 - 34.45 -60.03 1421804.12 2392781.09 80 °32'38.577 "N 15192'51.4881N 3.11 8.82 3.11 0.78 56.61 As Drilled Surveys 1596.00 18.51 241.05 1585.24 1531.89 -48.48 -84.79 1421779.10 2392747.52 80 °32'38.439'N 151 °1751.983 2.65 0.26 2.63 1.28 79.99 As Drilled Surveys - 1692.00 20.89 241.08 1675.61 1622.06 -64.13 - 113.11 1421750.50 2392732.39 60 °32138.285"N 1519752. r 2.48 6.79 2.48 0.03 106.76 As Drilled Surveys 1788.00 23.32 241.81 1764.55 1711.00 -81.39 - 144.85 1421718.45 2392715.72 60 °32'38.115 "N 15192'53.184'W 2.55 8.35 2.53 0.78 138.78 As Drilled Surveys 1884.00 25.75 242.63 1851.88 1798.33 -99.95 - 180.12 1421682.85 2392697.81 80 °32'37.932 "N 1519233.889"W 2.56 1.62 2.53 0.85 170.20 As Drilled Surveys 1980.00 29.01 242.82 1937.11 1883.56 - 120.18 - 219.36 1421643.24 2392678.31 80 °32'37.733 "N 151 °1754.874 3.40 -16.19 3.40 0.20 207.42 As Dnlled Surveys 2075.00 32.24 241.07 2018.85 1965.30 -142.96 - 262.04 1421600.15 2392656.32 80 °3737. "N 151 1255.527"W 3.53 13.58 3.40 -1.84 247.83 As Dolled Surveys - - 2170.00 34.90 242.19 2098.00 2044.45 - 187.91 - 308.28 1421553.48 2392832.24 60 °32'37.263 "N 15192'58.451 2.87 26.54 2.80 1.18 291.57 As Drilled Surveys - 2287.00 37.23 244.10 2176.41 2122.88 - 193.67 - 359.21 1421502.06 2392607.41 60 °32'37.009"N 15192'57.47' 2.67 -2.09 2.40 1.97 339.94 As Drilled Surveys 2382.00 4024 243.93 2250.50 2196.95 - 219.72 - 412.64 1421448.17 2392582.36 60 °3236.752 "N 151 °12'58. : 3.17 9.45 3.17 -0.18 390.76 As Drilled Surveys _- 2458.00 43.38 244.89 2322.05 2268.50 -247.45 - 470.31 1421390.00 2392555.70 80 °32'36.479 "N 1519259.691 3.31 -12.38 3.27 0.79 445.64 As Drilled Surveys 2553.00 45.36 244.08 2389.95 2336.40 - 276.17 - 530.21 1421329.58 2392528.09 80 °3736.196 "N 15193'00.88! ' 2.13 -45.58 2.08 -0.64 502.85 As Drilled Surveys 2649.00 47.34 241.38 2456.22 2402.67 - 308.01 - 591.92 1421287.29 2392497.39 60 °3235.883 "N 151•13'02.123"W 2.90 -14.39 2.08 -2.81 561.19 As Drilled Surveys y - 2748.00 51.24 240.10 2519.48 2465.93 - 343.97 - 656.04 1421202.52 2392462.63 8032'35.529"N 151 93'03.404 4.14 1.89 4.02 -1.32 821.74 As Drilled Surveys _ _ 2842.00 53.98 240.20 2577.77 2524.22 - 381.92 - 722.19 1421135.89 2392425.90 60 °3235.155"N 151 93'04.727 2.86 51.99 2.85 0.10 684.14 As Drilled Surveys _ _ 2914.00 55.68 242.79 2619.24 2565.69 - 410.00 - 773.91 1421083.46 2392398.79 60 °32'34.878"N 151°13'05.781 3.77 51.27 2.36 3.80 733.06 As Drilled Surveys _ 3040.00 58,42 243.89 2689.61 2636.06 - 458.89 - 887.32 1420989.21 2392353.63 80 °3734.416"N 151 °1327.62; 0.93 -424 0.59 0.87 821.78 As Drilled Surveys _ 3135.00 57.89 243.74 2741.13 2687.58 - 492.11 - 938.94 1420918.96 2392319.74 - 80 °3234.070"N 15193'09. c' 1.55 -53.81 1.55 -0.16 889.87 As Drilled Surveys _ __ 3232.00 58.41 242.91 2792.32 2738.77 - 529.10 - 1012.56 1420842.67 2392284.12 � 80 °3733.705 "N 151 9310.53 0.90 139.61 0.54 -0.88 959.79 As Drilled Surveys - 3327.00 58.32 243.00 2842.15 2788.60 - 565.87 - 1084.60 1420789.97 2392248.68 60°3233.343'N 15193'11.97 0.12 -80.17 -0.09 0.09 1028.15 As Drilled Surveys __ 3422.00 58.41 242.40 2891.98 2838.43 - 602.97 -1156.47 1420897.42 2392212.91 60°3732.978"N 151 13'13.'' 0.55 100.28 0.09 -0.63 1096.32 As Drilled Surveys _ 3518.00 58.31 243.06 2942.34 2888.79 , - 640.42 - 1229.12 1420624.10 2392178.82 80 °32'32.609"N 15193'14.86 0.59 -91.78 -0.10 0.69 1185.23 As Drilled Surveys _ _ -. 3814.00 58.29 242.19 2992.78 2939.23 - 677.97 -1301.65 1420550.90 2392140.61 60 3732.239"N 151 °13'18.311 0.77 48.86 -0.02 -0.91 1234.01 As Drilled Surveys _ 3709.00 58.41 242.35 3042.63 2989108 - 715.80 - 1373.23 1420478.63 2392104.30 60 °3731.868 "N 151 93'17.743"W 0.19 31.34 0.13 0.17 1301.84 As Drilled Surveys _ _ 3805.00 58.48 242.40 3092.87 3039.32 - 753.54 - 1445.71 1420405.47 2392087.72 80 °3731.494"N 151'13'19.191 0.09 -68.66 0.07 0.05 1370.54 As Drilled Surveys _ 3901.00 58.50 242.34 3143.05 3089.50 - 791.49 - 1518.22 1420332.28 2392031.11 60°32'31.121 "N 15193'20.8411N 0.06 -92.73 0.02 -0.06 1439.28 As Drilled Surveys _ -_ 3997.00 58.47 241.54 3193.23 3139.68 - 829.99 - 1590.44 1420259.36 239199325 60 °3730.741"N 151 93'22.085"W 0.71 -87.92 -0.03 -0.83 1507.65 As Drilled Surveys 4091.00 58.49 240.94 3242.37 3188.82 - 888.54 - 1660.89 1420188.42 2391956.70 80 °3230.382"N 15193'23.4; ! 0.54 93.28 0.02 -0.64 1574.07 As Drilled Surveys _ 4187.00 58.45 241.82 3292.57 3239.02 - 907.74 - 1732.52 1420115.88 2391918.84 ' 80 °32'29.976"N 15193'24.925'W 0.78 70.66 -0.04 0.92 1842.00 As Drilled Surveys _ -- 4281.00 4281.00 58.51 242.02 3341.72 3288.17 - 945.46 - 1803.22 1420044.51 2391882.44 60 °32'29604 "N 151 93'26,338"W 0.19 94.88 0.08 0.21 1708.94 As Drilled Surveys 4377.00 58.49 242.30 3391.88 3338.33 - 983.68 - 1875.60 1419971.44 2391845.55 i 60 °32'29227 "N 151°13'27.785'W 025 -76.80 -0.02 0.29 1777.51 As Drilled Surveys Page 1 of 2 TVD from MU Inclination Azimuth TVD Fld Ref North E.ra God East Grid North Latitude t unf Wild e DLS Toolface Build Rate Turn Rate Vert Sect Comments [ft] [ [°I [ft] [ft] [ft] Ift] [US ft] [US ft] [°1100ft] ["1 [°l100ft] t`1!Ooft] [ft] 4472.00 58.63 241.61 3441.43 3387.88 -1021.79 - 1947.13 1419899.21 2391808.77 60 °32'28.852"N 151 °13'29,215" 0.64 - 122.68 0.15 -0.73 1845.25 As Drilled Surreys 4568.00 58.45 24128 3491.53 343728 - 1080.93 - 2019.06 1419826.58 239177197 60 °3728.468"N 151 °13'30.653"W 0.35 9194 -0.19 -0.34 1913.29 As Drilled Surveys 4863,00 58.44 242.28 354125 3487.70 - 1099.22 - 2090.38 1419754,57 2391734.00 60 °32'28.089"N 151 °13'32,079'W 0.88 90.04 -0.01 123 1980.80 As Drilled Survv 4759.00 58.44 242.40 3591.49 3537,94 -1137.21 - 2162.83 1419881.44 2391897.38 80 °32'27.715"N 157 °13'33.527"W 0.12 68.67 0.00 0.15 2049.46 As Drilled Surveys 4855.00 58.48 242.52 3841.71 3588.16 - 1175.04 - 2235.37 1419608.21 _ 2391660.87 80•3727.347N 151 93'34.977W 0.11 85.54 0.04 0.12 2118.23 As Dried Surveys 4951.00 5151 242,96 3891.88 3838.33 - 1212.53 - 2308.13 14/9534.77 2391624.73 60'3226.973"N 151 °1736.432W 0.39 - 108.10 0.03 146 2187.25 As Drilled Surveys 5047.00 58.46 242.78 3742.06 3888.51 - 1249.85 - 2380.97 1419481.28 2391588.77 80°32'26.805"N 151 0.17 76.93 -0.05 -0.19 2256.35 As Drilled Surveys 5/43.00 58.58 243.28 379220 3738.65 - 1288.98 - 2453.93 1419387.64 2391552.99 60 °3728.240"N 151 °13'39.348* 0,46 - 115.15 0.10 0.52 2325.60 As Drilled Surveys 5239.00 58.52 243.18 3842.31 3788.76 - 1323.86 - 2527.04 141931326 2391517.47 80 °32'25.878"N 151 93'40.807"W 0.10 - 171.75 -0.04 -0.10 2395.02 As Drilled Surveys 5334.00 58.11 243.11 3892.21 3838.86 - 1360.38 - 2599.18 1419241.08 2391482.29 60 °32'25.516 "N 151 93'42.249'W 0.44 -89.13 -0.43 -0.07 2463.49 As Drilled Surveys 542920 58.12 242.48 3942.39 3888,84 -1397.27 - 2870,89 1419168.68 2391448.73 60 °3725.153 "N 15193'43,883* 0. 58 61.08 0,01 -0.68 2531.54 As Drilled Surveys 5525.00 58.20 24223 3993.03 3939.48 -1434.87 - 274326 1419095 63 2391410.47 60 °3724.782"N 1519145.130'W 117 10024 108 118 260116 As Drilled Sun,ee s 5620,00 5811 243.22 4043.16 3989.61 - 1471.60 - 2815.12 1419023 12 239137527 80°3724.421"N 151 °13'48.566 * 0.54 -69.79 -0.09 0.82 2868.35 As Drilled Surveys 5717.00 5822 242.87 4094.32 4040.77 - 1508.95 - 2888.58 1418948 99 2391339.08 60 °3224.053"N 151 °13'48234* 0.33 93.85 0.11 -0.38 2738.07 As Drilled Surveys 5812.00 58.08 246.31 4144.46 4090.91 1 -1543.57 - 2961.45 1418875 49 2391305.81 613223.711"N 151°1349.491'W 358 9210 -0.15 3.62 2807.48 As Drilled Surveys 590100 58.02 249.63 4195,27 4141.72 - 1574.12 ' - 3036.94 1418799 45 239127857 60 °3223.410"N 151 °1751.000"W 223 124,02 -108 3.48 287183 As Drilled Surveys 6004.00 56.18 25259 424743 4193,88 -1599,97 - 3113,26 1418722 67 239125223 60 °32'23.156 "N 151 °1752.528'W 151 93.41 -1,92 3.50 2953,47 As Drilled Surveys 6100.00 56.03 259.58 4301.01 4247.46 - 1618.85 - 3190.61 1418644.99 2391234.78 80 °3722.970"N 151°13'54.072"W 5.70 91.95 -0.18 6.88 3028.75 As Drilled Surveys 6196.00 55.99 264.59 4354.70 4301.15 - 1629.80 - 3269.41 1418566 01 2391225.28 80 °3722.861"N 151 93'55.847W 4.33 87.46 -0.04 5,22 3106.21 As Grilled Surveys 6291.00 5633 270.27 4407.63 4354.08 - 1633.33 - 3348.18 1418487.19 2391223.21 80 °32'22.826"N 151 93'57.222W 4.98 88.92 0.36 5.98 3184.33 As Drilled Surveys 6388.00 56.81 276.94 4461.11 4407.56 - 1628,23 - 3428.90 1418408.58 2391229.80 60 °32'22.876 "N 151 °13'58,835"W 5.76 83.61 0.49 6.88 3285.18 As Drilled Surveys 6484.00 57.75 L 284.47 4513.05 4459.50 - 1813.22 - 3508.18 1418327.61 2391248.27 60'32'23.024"N 151 °14'00,420" 6.87 80.16 0.98 7.84 3345.49 As Drilled Surveys 6579.00 58.74 290.26 4563.08 4509.53 - 1589.11 - 3585,20 1418251.03 2391271.80 60°32'23.261 "N 15194'01,960* 5.29 81.34 1.04 6.09 3424.41 As Drilled Surveys 6675.00 59.72 296.55 4612.23 4558.88 - 1556.34 - 3660.83 1418178.02 _ 2391305.95 80 °32'23.584 "N 151 °14'03.472* 5.72 75.05 1.02 6.55 3502.73 As Drilled Surveys 6771.00 61.16 302.19 4659.82 4606.07 - 1515.39 - 3733.54 1418104.08 2391348.24 60 °32'23.987 "N 151 °14'04.928" 5.33 67.48 1.50 5.87 3578.89 As Drilled Surveys 6868.00 63.01 306.97 4704.11 4650.56 - 1467.74 - 3802.61 1418035,91 2391397.15 60 °32'24.456 - N 151 °14'06.307" 4.85 88.20 1.95 5.03 3652.03 As Drilled Surveys 6981.00 65.03 312.27 4745.75 4892.20 - 1413.29 -3868.34 1417971.20 2391452.80 60 °32'24.992"N 151 °14 '07.621" 5.45 87,52 2.13 5.58 3722.47 As Drilled Surveys 7057.00 6658 317,18 4784.81 4731.26 - 1351.58 - 3930.60 1417910.09 2391515.85 80 °3725.599"N 151 °14'08.867"W 559 6114 2.03 5.11 3790.13 As Drilled Surveys 715250 6854 32122 482147 476192 -1284.93 3988.11 141785183 2391583.35 80°3226.256 "N 151'14'10.017W 4.45 55,55 2,06 425 3853.51 As Drilled Surveys 7248.00 71.12 32453 4853.26 479971 -1212.99 4042.54 741780074 2391658.27 60°3226564"N 151 °14'11.705* 3.98 80.32 227 3.45 3914.30 As Drilled Surveys 7344.00 73.49 328.78 4882.45 4828.90 - 1136.60 -4092.77 1417751.92 2391733.57 80 °32'27 716 151 °14'12.110" 4.89 50.83 2.47 4.43 3971.33 As Drilled Surve rss 7440.00 78.24 + 332.22 4907.52 4853.97 1055.96 4138.38 1417707.81 2391815.03 60 °32'28.570"N 151 °74'13.D22" 4.49 29.75 2.88 3.58 4024.14 As Drilled Surveys 7532.00 _ 79.64 334.19 4928.74 4873.19 - 975.68 -4178.92 1417868.76 2391898.06 ' 60 °32'29.301"N 15194'13.833"W 4.25 74.52 3.70 2.14 J 4071.87 As Drilled Surveys 7573.00 80.00 335.50 4933.99 4880.44 -939.14 - 4196.07 1417652.29 2391932.90 60 °32'29.66014 151 94'14.177W 0.00 0.00 0.88 3.20 4092.30 Projected 12 1/4 70 7673.00 80.00 335.50 4951.35 4897.80 ~649.52 I - - 4236.91 1417613.11 2392023.24 60 °32'30.543"N 151 °14'14.994* 0.00 0.00 0.00 0.00 4141.18 777350 80.00 33550 496172 491117 75951 4277.75 _ 1417573.93 2392113.59__ 60 °32'31,425 "N 151°14'15,811W 0,00 100 0.00 000 4190.07 7778.50 80.00 335.50 4989.87 4918.12 754.98 4280.00 1417571.78 2392118.56 80 °3731.474 "N 751 °14'15.858* 0.00 100 0.00 0.00 4192.75 Begin Build 787350 8159 335.50 4964,54 493199 - 870.06 - 4318.70 1417534.85 2392204.17 8132'32.310"N 151 1416.630"* 2.00 0,00 250 050 4238.07 7973.00 8339 ', 335.50 499652 494337 - 57977 435184 1417495.16 2392295.20 6132'33.199"N 157 °14'17.453* 2.00 100 2.00 400 4288.33 8003.46 84.50 335.50 500100 4946,45' - 552.19 - 4372,41 141748112 239232351 613733.470"N 151 °14'17305W 2,00 100 250 0.00 430137 End Angle Build 807350 84.50 ' 335.50 500186 4953.11 - 48921 4401.12 1417455.59 2392386.51 6132'34.090"N 151 °14'18279" 100 050 0.00 0.00 4337,73 8173.00 84.50 33550 5018,25 4962.70 - 398.83 - 4442.39 141741 5.98 239247733 8132'34.982"N 151 °74'19.105* 050 100 050 0.00 4387,14 827350 8450 33150 502523 4972.28 -30856 - 4483.67 141737639 2392569,15 80 °32'35,874 "N 151 °1419.931"W 0.00 100 100 0.00 443655 837350 8450 335.50 503542 498137 217.48 4524.95 141733179 239266046 613736,766"N 151'1420,757W 0.00 000 100 0.00 4485.95 8473.00 84.50 i 335.50 5045.00 4991.45 - 126.90 - 4566.23 1417297.19 2392751.78 80°32'37.858"N 151 °14'21,583* 0.00 0.00 0.00 0.00 4535.36 iir 8573.00 84.50 335.50 5054.59 5001.04 - 38.32 - 4607.51 1417257.60 2392843,10 _ 60 °3738.550"N 151 °1422.409'W 0.00 0.00 0.00 0.00 4584.77 8873.00 84.50 335.50 5064.17 50 10.62 5425 -4848.79 1477218.00 2392934.42 80 °37'39.441 "N 151°74'23.235* 0.00 050 0.00 0.00 I 4634.18 8773.00 84.50 335.50 5073.76 5020.21 144.83 - 4690.06 1417178.40 2393025.74 _ 60 °32'40.333"N 151 °14'24.061"W 0.00 0,00 0.00 0.00 4883.59 - _ _ - 8873.00 84.50 335.50 5083.34 5029.79 235.41 -4731.34 1417138.80 2393117.08 80 °3741.225"N 151 °74'24.867"* 0.00 0.00 0.00 0.00 4733.00 8973.00 84.50 , 335.50 5092.93 5039.38 325.99 - 4772.82 1417099.20 2393208.38 _ 80 151 9425.713" 0.00 0.00 0.00 0,00 4782.41 907300 84.50 335.50 5102.51 5048.96 416,58 -4813.90 1417059.60 2393299.70 80°32'43,009"N 151 °1428.539* 0.00 0.00 0,00 050 4831.82 - - 9173.00 84.50 335.50 5112.10 5058.55 507.14 -4855.18 1417020,01 2393391.02 60 °32'43.901"N 151°14'27.387W 0.00 0.00 0.00 0.00 4881.22 9273.00 84.50 i 335.50 5121.68 5068.13 597.72 - 4896.46 141698141 239348233 6132'44.793"N 151 °1428.191" 100 050 0.00 0.00 4930.63 9373.00 84.50 335.50 5131.26 5077.71 688.29 -4937.73 2393573.85 8132'45.884"N 151 °14'29.018" 0.00 0.00 0.00 0.00 4980.04 9472.00 84.50 33550 5140.75 508720 77757 4978.60 _ 1416901,81 239366456 613248.567"N 151 °1429,835'W 100 0.00 0.00 000 5028.96 Begin Final Build 947100 84.51 335.50 - 5140,85 508730 778.87 4979.01 141690121 239366457 6132'46.576"N 151 °1429.844" 1,27 0.00 127 000 502945 9573.00 85.79 33150 5149.30 5095.75 869.54 5020.33 1416861.57 2393756.38 60 °32'47.469"N 151 °14'30.671" 1.27 0.00 1.27 0.00 5078.91 9582.83 85.91 338.50 5150.00 5098.45 87828 - 5024.32 1416857.75 2393785.19 00•3247.555"N 1519410.750W 1.27 0.00 1.27 0,00 5083.68 End Build 9673.00 85.91 335.50 5156.45 5102.90 960.30 _ - 5061.70 1418821.89 2393847.89 80°3748.383°N 151°1411.499"W 0.00 I 0.00 0.00 I 0.00 5128.42 __, .- -- 9773.00 85.91 335.50 5163.58 5110.03 I 1051.07 , - 5103.06 + 1416782 -21 2393939.40 80 °32'49.256 "N 151 °14'32.326 "W 0.00 I 0.00 . 0.00 1 0.00 L5177.93 i , 9806.97 85.91 53550 5186.00 5112.45 1081.90 - 5117,11 1418708.73 2393970.48 6132'49.560 "N 15114'32.608"W 0.00 0.00 0.00 0.00 5194.75 TD Page 2 of 2 Cook Inlet Natural Gas ilk STORAQ y CINGSA (Cook Inlet Natural Gas Storage Alaska) ///klIl Location: Cook Inlet, Alaska (Kenai Peninsula) Slot: Slot #1 BAKER Cannery Loop Unit (NAD83) Wet: CLU Storage 1 HUGHES Facility: Gas Storage Pad Wellbore: CLU Storage 1 Plot reference wellpath is CLU Storage 1 Projected Version #2 True vertical depths are referenced to Nabors 105E (RTE) Grid System: NAD83 TM Alaska SP, Zone 4 (5004), US feet _ Measured depths are referenced to Nabors 105E (RTE) North Reference: True north Nabors 105E (RTE) to Mean Sea Level: 53.55 feet Scale: True distance Mean Sea Level to Mud line (At Slot: Slot #1): 0 feet Depths are in feet Coordinates are in feet referenced to Slot Created by: jonethoh on 07 -Dec -11 �,�,.�h =5o0n Easting (ft) -5500 -5250 -5000 - 4750 -4500 -4250 -4000 -3750 -3500 1 1 1 1 1 I 1 1 1 1500 — 1250 7in Liner — 1000 ' — 750 G N` 0 � 7in Liner — 500 0 P5 Original Tgt Toe REVISED: 25.0ct -11 ORIGINAL PLAN — 250 — 0 Z 0 a. 0 — -500 — -750 P5 Original Tgt Heel REVISED: 25-Oct-11 O r 9.625in Casing Intermediate \\N — -1000 4650 ■ s y -. •1250 4800 — L , 9.625in Casing Intermediate — -1500 c) 4950 — Projected 12 1/4 TD ,.. P5 Original Tgt Heel REVISED: 25-Oct -11 CD Begin Budd _ 2.00 ° /100tf nd Angle Build U N > 5100 — N 3 - Begin Final Bu ° 1. 27 ° /100ft I— P5 Original Tgt Toe REVISED: 25-Oct-11 C - - nd Build TD - _ ORIGINAL PLAN Tin Liner ' < S 7in liner ---_. ro CLU Storage �l -.. 5250 — 5400 — 1 1 1 1 1 1 1 1—,..---1.....--— 1 1 3900 4050 4200 4350 4500 4650 4800 4950 5100 5250 5400 Vertical Section (ft) Scale 1 inch ° 300 „ Azi .5 26° with reference 0.00 N, 0.00 E • Cook Inlet Natural.Gas _AD 1,—. STORA A ‘ CINGSA (Cook Inlet Natural Gas Storage Alaska) ��•� BAIKEIR Location Cook Inlet, Alaska (Kenai Peninsula) Slot Sot #1 Field: Cannery Loop Unit (NAD83) Well: CLU Storage 1 HUGHES Facility: Gas Storage Pad Wellbore: CLU Storage 1 Scale 1 I nyp =3ppry Easting (ft) -5550 -5400 -5250 -5100 - 4950 -4800 -4850 - 4500 -4350 -4200 -4050 -3900 -3750 -3600 1 1 1 1 1 1 1 1 1 1 I 1 1 1 1500 - - 1500 1350 ■ - 1350 1200 - / 1200 y Tin Liner - G ,, 1050 ■ - 1050 4500 900 ■ - 900 4800 511 . 750 - ,, - 750 57', 600 - ' v - 800 U' 450 - O - 450 P5 Origins Tgt Toe REVISED: 25-0ct -11 5100 - 300 - - 300 Z on o c L S o o co Z 150 ■ - 150 0 - - 0 -150 - - -150 -300 - 7800 CLU # , . 6000 - -300 5700 -450 ■ 5400 - -450 5100 -800 - - -600 4800 � 1IL ON -750 ■ 8400 81. 8100 - •- -750 4500 C`U •a•.. , 0000 -900 - e c. • 87•, -�. 7 • • R i - -900 • ell ( /, � 7 R � P5 Original Tgt Heel REVISED: 25-Oct-11 ., � 9.625in Casing IMemiediate -1050 // + -1050 1 I 1 1 1 1 I 1 1 I 1 ) I 1 -5550 -5400 -5250 -5100 - 4950 - 4800 -4650 -4500 - 4350 -4200 -4050 -3900 -3750 -3600 Scale i Inch .saon III Easting (ft) • Clearance Report 1,511111 Cook Inlet Natural Gas STORA CLU Storage 1 Projected Version #2 4 ' ' Closest Approach BAKER Page 3 of 37 HUGHES REFERENCE WELI.PATH IDENTIFICATION Operator CINGSA (Cook Inlet Natural Gas Storage Alaska) Slot Slot #1 Area Cook Inlet, Alaska (Kenai Peninsula) Well CLU Storage 1 Field Cannery Loop Unit (NAD83) Wellbore CLU Storage 1 Facility Gas Storage Pad CALCULATION RANGE & CUTOFF From: O.00ft MD To: 9806.97ft MD C -C Cutoff: (none) III OFFSET WELL CLEARANCE SUMMARY (17 Offset Wellpaths selected) Ellipse separations calculated in Closest Approach plane I C -C Clearance Distance ACR Ellipse Separation Distance Ref Min C-C Diverging Ref MD of Min Min Ell Sep ACR Offset Offset Offset Offset Offset MD Clear Dist from MD Min Ell Sep Ell Sep Dvrg from Status Facility Slot Well Wellbore Wellpath [ft] Ift] [ft] [ft] [ft] [ft] Pad #3 CLU #12 CLU #12 CLU #12 NaviTrak MWD<0- 10415 9806.97 470.13 9806.97 9806.97 276.35 9806.97 PASS Pad #1 CLU #6 CLU #6 CLU #6 MWD <195- 8320> 7718.25 520.42 7718.25 7901.07 345.32 7901.07 PASS Gas Storage Pad Slot #2 CLU Storage 2 CLU Storage 2 - NaviTrak - OnTraK MWD<206- 8577'> 7573.00 715.31 7573.00 7573.00 420.10 7573.00 PASS Pad #1 CLU #7 CLU #7 CLU #7 MWD <197- 10864> 8418.25 723.41 8418.25 8286.52 448.77 8400.00 PASS Pad#3 .. MU #11 CLU #11 CLU #11 '" MW1)co -9305 9139.12 74863 9139J2 , ` 9100,04 368::10 9 100.00 'PASS Gas Storage Pad Slot #3 CLU Storage 3 CLU Storage 3 OTK MWD <210- 8693 7573.00 1327.79 7573.00 7573.00 1049.46 7573.00 PASS Gas Storage Pad Slot #4 CLU Storage 4 CLU Storage 4 NaviTrak - OnTrak MWD<267- 10500'> 7573.00 1853.53 7573.00 7573.00 1584.39 7573.00 PASS Pad #1 CLU #8 CLU #8 CLU #8 MWD <200- 9777'> 7573.00 2016.59 7573.00 7573.00 1797.931 7573.00 PASS Pad #1 CLU #1 CLU #1 CLU #1Rd MWD<9768- 10835 8118.25 2466.35 811825 8286.55 2277.46 8286.55 PAS Pad #1 CLIl #1 4 #1 CLU #IRdPBI MWD<5750.107 '> 811$.25 '146.0.3S 8118:25 $2$6.$S 2271:46'. 87.86:55 1 Pad #1 CLU #5 CLU #5 CLU #5 MWD <0- 8511' >Dipmeter <8600 - 11420'> 7573.00 2831.12 7573.00 7573.00 2667.42 7573.00 PA Pad #1 CLU #1 CLU #1 CLU #1 PGMS <0- 120105 7909.13 3114.08 7909.13 8286.55 2895.12 8286.55 PASS Pad #3 CLU #4 CLU #4 CLU #4 PGMS <0- 16500'> 9806.97 3341.67 9806.97 9806.97 3135.29 9806.97 PASS Pad #3 CLU #3 CLU #3 CLU #3 PGMS <0- 11125'> 9806.97 3549.61 9806.97 9806.97 3284.92 9806.97 PASS Pad Si' ' ; ,r = '" ,'CL1J #9 ° CLU #9 ' -. 'CL11 #9 ° „NMI! <165-9107> 7573.00 3873 '', '''-' '---1sPA . 7573. 462311 ` _. 1571:00 =.I'ASS IKU13 -8 KU13 -8 KU13 -8 KU13 -8 KU13 -8 Inclination ONLY<0- 5506 7573.00 4054.58 7573.00 7573.00 3810.69 7573.00 PASS Pad #1 CLU #10 CLU #10 CLU #10 MWD <136- 8450 7573.00 5136.66 7573.00 7573.00 4930.71 7573.00 PASS • S Cook Inlet NaturatGas Cook Inlet Natural Gas Storage Alaska, LLC 3000 Spenard Road PO Box 190989 S TO RA Main: Anchorage, 907- 33 99519 -0989 4- Main: 907 - 4 -7980 Fax: 907-334-7671 QS Q > www.cingsa.com December 7, 2011 Alaska Oil and Gas Conservation Commission RECEIVE 333 West 7 Avenue, Suite 100 DEC 0 7 2a11 Anchorage, AK 99501 RE: CLU Storage 1 Alaska Oil . Cofl1 Min PTD - 22.4e1' a∎,• - ‘ W4 4f411411 Anc�ioragCogse API #- 50- 133206000000 Commissioners, Cook Inlet Natural Gas Alaska, LLC (CINGSA) requests extending the production interval on CLU Storage 1 by approximately 750' to 9,807'MD. TVD will be deepened slightly to 5,166' from 5,162'. Calculated displacement from the original BHL is 777'. The closest approach will be at TD to Marathon's CLU #12 (suspended) at 470' with ellipse separation of 276'. New NAD 27 Bottom Hole Location: 571' FSL 1592' FEL SEC. 5 T5N R11W @ 9,807'MD/5,166'TVD. Recent geotechnical analysis indicates that the well will obtain greater reservoir exposure in the Sterling C2 by increasing the hole angle to 86 degrees from a planned 81 degrees. As of December 6, 2011, intermediate 9 5/8" casing was set and cemented at 7,563'. CINGSA expects to have the casing cleaned out, FIT performed and be drilling 8 1/2" production hole by mid -day on December 7th. The 500' lateral boundary under our current PTD would not be reached until late December 8th. The revised TD will not require a spacing exemption and is well within the Sterling C pool storage boundary as shown on the attached Overview Slide. Please find enclosed an Application for Permit to Drill Form 10 -401, revised directional plan including actual surveys to date, well clearance report, and well plots. All other information contained in the PTD - 21149 will remain the same. Sincerely, M. Colleen Starring Vice President Enclosure as stated • • TRANSMITTAL LETTER CHECKLIST WELL NAME c- �� S'� Ccz'`IV PTD# a l I Development Service Exploratory Stratigraphic Test Non - Conventional Well FIELD: Cc' ` �� V POOL: - CA.i r`, ` C- �. Check Box for 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(1), 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 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: 9/09/2011 Field & Pool KENAI C.L.U., STERL C GAS STOR - 449800 W.�- p Well Name: CANNERY LOOP UNITS -1 Program SER Well bore seg PTD #: 2111490 Company COOK INLET NATURAL GAS STORAGE ALASKAN Initial Class/Type SER / GSTOR GeoArea 820 Unit 10320 On /Off Shore On Annular Disposal ❑ Administration 17 Nonconven. gas conforms to AS31.05.030(j.1.A),(j,2.A -D) NA 1 Permit fee attached NA 2 Lease number appropriate Yes 3 Unique well name and number Yes 4 Well located in a definedpool No Gas Storage well. 5 Well located proper distance from drilling unit boundary Yes 6 Well located proper distance from other wells Yes 7 Sufficient acreage available in drilling unit Yes 8 If deviated, is wellbore plat included Yes 9 Operator only affected party Yes 10 Operator has appropriate bond in force Yes Blanket Bond. Appr Date 11 Permit can be issued without conservation order _ Yes ACS 12/9/2011 12 Permit can be issued without administrative approval Yes 13 Can permit be approved before 15 -day wait Yes 14 Well located within area and strata authorized by Injection Order # (put_IQ# in comments) (For NA 15 All wells within 1/4 mile area of review identified (For service well only) NA _ 16 Pre - produced injector: duration of pre production less than 3 months (For service well only) NA 18 Conductor string provided Yes 20" @ 120'. Engineering 19 _Surface casing . protects all known USDWs Yes 20 CMT vol adequate to circulate on conductor & surf csg Yes 21 CMT vol adequate to tie -in long string to surf csg Yes Intermediate will be cemented to surface. 22 CMT will cover all known productive horizons Yes _ Ultimate tmd extended by 750'. Permit reissued —Dec 12, 2011. 23 Casing designs adequate for C, T, B & permafrost Yes 24 Adequate tankage or reserve pit Yes Nabors Rig 105E X'-------- 25 if are- drill, has a 10 -403 for abandonment been approved NA 26 Adequate wellbore separation proposed Yes 27 If diverter required, does it meet regulations Yes Appr Date 28 Drilling fluid program schematic & equip list adequate Yes Maximum MW planned 9.8 ppg. • TEM 12/9/2011 29 BOPEs, do they meet regulation Yes 30 BOPE press rating appropriate; test to (put psig in comments) Yes Calculated MASP 1766 psi. 2509 psi test pressure planned. 31 Choke manifold complies w /API RP -53 (May 84) Yes 32 Work will occur without operation shutdown Yes Wells will be batch drilled and completed with coil. 33 Is presence of H2S gas probable No H2S has not been encountered in CI gas drilling. 34 Mechanical condition of wells within AQR verified (For service well only) NA 35 Permit can be issued w/o hydrogen sulfide measures Yes There has been no report of H2S from any of the surrounding fields. Geology 36 Data presented on potential overpressure zones NA _ Appr Date 37 Seismic analysis of shallow gas zones NA ACS 12/9/2011 38 Seabed condition survey (if off- shore) NA 39 Contact name /phone for weekly progress reports [exploratory onlyj NA Geologic Engineering Public go di ,/� Commissioner: Date: Commissioner: Date Commissioner Date DTS 11/16/2011 JKN , j/c..c________ • • sTrAuE Lu SEAN PARNELL, GOVERNOR ALASKA. OIL AND GAS 333 W. 7th AVENUE, SUITE 100 CONSERVATION COMMISSION ANCHORAGE, ALASKA 99501 -3539 ►7�I PHONE (907) 279 -1433 FAX (907) 276 -7542 M. Colleen Starring Vice President Cook Inlet Natural Gas Alaska, LLC P.O. Box 190989 Anchorage, AK 99519 Re: Canne ry Loop Loo Field , Sterlin g C Pool, CLU Storage 1 Cook Inlet Natural Gas Alaska, LLC Permit No: 211 -149 Surface Location: 520' FNL, 1764' FEL, SEC. 9, T5N, R 11 W Bottomhole Location: 77' FNL, 1167' FEL, SEC. 8, T5N, R 11 W Dear Ms. Starring: Enclosed is the approved application for permit to drill the above referenced service 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. Sincerely, Daniel T. eamount, Jr. Chair DATED this / day of November, 2011. cc: Department of Fish 85 Game, Habitat Section w/o encl. (via e -mail) Department of Environmental Conservation w/o encl. (via e -mail) STATE OF ALASKA . ; ' r D All, OIL AND GAS CONSERVATION COI PERMIT TO DRILL kl `v 0 zoi�//-// 20 AAC 25.005 1a. Type of Work: 1 b. Proposed Well Class: Development - Oil ❑ Service - Winj ❑ Single Zone ❑ lc. Specify if proms ion Drill al Redrill ❑ Stratigraphic Test ❑ Development - Gas ❑ Service - Supply 0 Multiple Zone a Coalbed Gas b o �yy Re -entry ❑ Exploratory ❑ Service - WAG II Service - Disp ❑ Service - Gstor $ ia12'Gas El 2. Operator Name: 5. Bond: Blanket ✓ Single We I ❑ 11. Well Name and Number: Cook Inlet Natural Gas Alaska, LLC Bond No. `O5 ' 7 9 ' CLU Storage 1 3. Address: 6. Proposed Depth: 7 12. Field /Pool(s): P.O. Box 190989, Anchorage, AK 99519 MD: 9,060' TVD: 5 Cannery Loop/ Sterling C pool 4a. Location of Well (Governmental Section): NAD 27 7. Property Designation (Lease Number Surface: 520' FNL 1764 FEL SEC. 9 T5N R11W ADL 391627 ` Top of Productive Horizon: 7,618' MD / 4,934' TVD 8. Land Use Permit: / 13. Approximate Spud Date: 1417' FNL 697 FEL SEC. 8 T5N R11W ADL 230925 11/20/2011 Total Depth: 9,060' MD / 5,162' 'TVD 9. Acres in Property: 14. Distance to Nearest Property: 77' FNL 1167 FEL SEC. 8 T5N R11W 1271/ 207' 14b. Location of Well (State Base Plane Coordinates - NAD 27): 10. RT Elevation above,.MSL: 53.5 feet 15. Distance to Nearest Well Open ISurface: x- 281844.60 y- 2393032.28 Zone- 4 GL Elevation above MSL: 33 feet to Same Pool: 526 feet (CLU -6) 1 r i6. Deviated wells: Yes Kickoff depth: 1000' feet 17. Ma i um Anticipated Pressures in psig (see 20 AAC 25.035) Maximum Hole Angle: 80.9 degrees Downh. e: ,212 Surface: 1,766 18. Casing Program: / Specifications A ■ t - Setting Depth - Bottom 1 Cement Quantity, c.f. or sacks Hole Casing Weight Grade Coupling Length 'Fr TVD MD TVD (including stage data) Driven 20" 133 X56 PE 95' , 0 115.5' 115.5' N/A I 16" 13 3/8" 68 J -55 BTC 2,940' R 0 2,940' 2,623 784sxs lead / 277 sxs tail L12 1/4" 9 5/8" 40 L -80 BTC 7, ,-' 0 0 7,644' 4,938' 521 sxs lead /196 sxs tail /486 2nd stg ss 1, C `12" 7" 26 L -80 VamTop 1 6 ' 7,444' 4,899' 9,060' 5,162' 234 sxs '_ --r _.. LL I 9 5/8" stage collar @--3, 500'MD 19. PRESENT WELL CONDITION St 'MM;' (T . - completed for Redrill and Re -Entry Operations) -f — Total Depth MD (ft): Total Depth TVD (ft): Plugs (me r • ur- d): Effect. Depth MD (ft): Effect. Depth TVD (ft): Junk (measured): I / Casing Length Si Cement Volume MD TVD Conductor /Structural - Surface _- ----'' Intermediate -- — Production fir ________________---- Liner Perforation Depth. MD (ft): I Perforation Depth TVD (ft): 7 20. Attachments: Property Plat f BOP Sketch ❑ Drilling Program 6 Time v. Depth Plot Q Shallow Hazard Analysis E Ili Diverter Sketch le Seabed Report ❑ Drilling Fluid Program Q 20 AAC 25.050 requirements ❑ 12 . " rbal ; orgoval: Commi .i.n '' r - .entative: Date , ry : ' b; certify that the f. - oir $ s. rue and correct. Contact 4 c• r vii M. Col -e tarring Title Vice President r Signature i , .,- ,, - Phone 907 - 334 -7659 Date i _ 7 C I - l�s� �! ( l Commission Use Only Permit to Drill API Number: Permit Appro V See cover letter for other .4t:mber: ,::::?//,' # 501jj 00 ODOc> Date: t\� , requirements. iConditions oi' approval , If box is checked, well may not be used to explore for, test, or produce coalbed metha , gas hydrates, or gas contained in shales: 'Other: Samples req'd: Yes ❑ No bind lag req'd: Yes ❑ o w a i �. d H measures: Yes ❑ No Directional svy req'd: Yes [% No ri / ____ � �� // // MAK- DAT E: _ APPROVED BY THE CGiJ.r71S51�ra c , COMMISSIONER , ORI =arm 10-401 (Revised 712009) This permit is valid for 24 months from the date of approval (20 AAC 25.005(g)) Submit in Duplicate 1 . Cook Inlef NUIUT4 Cook Inlet Natural Gas Storage Alaska, LLC 3000 Spenard Road PO Box 190989 S TO A Main: Anchorage, AK 99519 -0989 Main: 907 - 334 -7980 Qag Fax: 907- 334 -7671 www.cingsa.com November 7, 2011 Ms. Jody Colombie RECEIVED Special Assistant to the Commission NOV Alaska Oil and Gas Conservation Commission 1 0 2011 333 West 7th Avenue, Suite 100 Afar Ca Otl & alt 100111. GonM1l1�11 ®� Anchorage, AK 99501 Qr�i :f :n RE: Drilling Permit Application for Gas Storage Injection Well Cook Inlet Natural Gas Storage Alaska, LLC Kenai, Alaska Dear Ms. Colombie: Enclosed for your information and processing is a Drilling Permit Application for Cook Inlet Natural Gas Storage Alaska, LLC's (CINGSA) CLU Storage 1 injection/withdrawal well. In our letter to you dated July 6, 2011, CINGSA identified the CLU 6 well as the nearest producing well to CINGSA's proposed injection/withdrawal wells. The CLU 6 well had been producing from the Sterling C Pool but was shut -in at the end of July 2011. The Sterling C Pool interval will be plugged and abandoned prior to C1NGSA's commencement of injection of natural gas for storage. Injection for storage is scheduled to begin in April 2012, as per the terms of the March 25, 2011 agreement between Marathon Alaska Production, LLC and CINGSA. If you have any questions concerning the enclosed permit application, please feel free to contact Richard Gentges, Senior Project Manager at 907 - 335 -1488 (office), or 907 - 310 -7322 (cell). Sincerely, • A, M. Colleen Starring Vice President Enclosure as stated CC: R. J.Gentges, CINGSA, w/o enc. J. Lau, ENSTAR, w/o enc. N. Thompson, ENSTAR, w/o enc. C. Perry, PRA, w/o enc. T. Walsh, PRA, w/o enc. • Cook Inlet Nafural STORAQj V, CINGSA DRILLING PROGRAM CLU ST0RAGE I Originator _ / frd Date / / /e/.2 0 // C r ad Perry Approved by Date Richard Gentges Approved by /` Date ///q/// John Lau 11Page • • AREA MAP 5 GENERAL RESERVOIR OVERVIEW 5 CINGSA CURRENT WELL PLANS 6 CINGSA FACILITIES MAP 7 SURVEYED LOCATION PLOT 8 WELL PAD LAYOUT 9 GENERAL WELL DATA 9 GEOLOGIC PROGRAM SUMMARY 10 SUMMARY OF POTENTIAL DRILLING HAZARDS 11 FORMATION EVALUATION SUMMARY 11 DRILLING PROGRAM SUMMARY 12 CASING PROGRAM 13 CASING DESIGN 13 MAXIMUM ANTICIPATED SURFACE PRESSURE 13 WELL CONTROL AND CASING DESIGN CALCULATIONS 14 BOPE PROGRAM 17 BOPE DIAGRAMS 17 CHOKE MANIFOLD 18 BOP STACK 19 WELLHEAD EQUIPMENT SUMMARY 20 DIRECTIONAL PROGRAM SUMMARY 21 21 Page 0 • POTENTIAL WELL INTERFERENCE• 22 DIRECTIONAL SURVEYING SUMMARY 22 DETAILED DIRECTIONAL PLANNING 23 WELL CLEARANCE REPORT 29 PLANNED WELL SUMMARY SHEET 30 DRILLING FLUID PROGRAM SUMMARY 31 DRILLING FLUID SPECIFICATIONS 31 SOLIDS CONTROL EQUIPMENT 32 CEMENT PROGRAM SUMMARY 32 REGULATORY WAIVERS AND SPECIAL PROCEDURES 33 BIT SUMMARY 33 HYDRAULICS SUMMARY 34 FORMATION INTEGRITY TEST PROCEDURE 35 PROPOSED COMPLETION SCHEMATIC 36 SURFACE USE PLAN FOR CLU STORAGE 1 37 31Page 8 d 1 1 7 Measured Depth (ft) I No 0 0 0 00 © e...., .-.7--, 4. o No o o 0 0 0 0 0 q, q 0 q q q q o 7 ,-, :i erg y, * i-i o Run : Out 13 3 8' Csg _ , : o 0 N aTest B■ Ps CD l• l'" i-A vi = C —1 LA .....0 — 3 o 0 CD al al 0 . A - r 17-C3 .4.; Run and Cement 9 5/8 Csg 17%, — I imah 0 . 4 . r 1 Run & Cmt 7" Liner Run 7" Completi N -DRelease-Rig- w ` Rig Up Coil --- Perforate' Release Coil _ w VI °Juno emu. intlea • 11111 4110 • AREA MAP 0., -,t Anchorage 4.1 "' 4, r - i.,•: , ,Z , "r onek ' • • • • • • 1 ■ , ■ I •., •J , , ./ A T Kenai Field, Cannery Loop Unit, • ' Sterling Undef \Nikiski r ,• - Gas Pool Kenai ,- • Cooper Landing --, - ...., '.-- 7 - , li 1 1 , Seward GENERAL RESERVOIR OVERVIEW ..• • - ,iN,- - ' ' 4 , . = ., • .• 1 i <=,. ..., 4. , K an A - ••••-- _, ,i•-'•‘ ., , F•2 ) :„ - • - - •-•..0.Z. --•44- ' , -•-4 - 24 . ,-... — •• 4. 1 , LC •, 1 1 -- , I — 1 --. . .. -2 .. 4' i tIN G SA-1 1 , f r: •4 - - . -4.. • -„,,,, i - , , ,,,,,, - ..„-Aivili..kii.t. a, • i , • ki 4.•••■-•••; 7-`:r --„?..-T ...._ — I , IS = . r ' I L „...„ 4,......._ i_ ----,- ,,,.. ,,, I- ..., --, - Wage • • CINGSA CURRENT WELL PLANS C LU -3 r „,.....„------- , CE:tp .,.., .. ,,, illi\k`. CLU - 1 � LUS 1 i CLU-7 r CLU f , CLU- ■ r CLUB 13 US- A d 0-4 h LU$ * S -5 61 Page • • CINGSA FACILITIES MAP „ . PROJECT OVERVIEW ' \ . ..3 . NNN, , ‘ EXISTING CONTOURS ,.....-- ,1 \ • \ ... ', ./..4`;,=■., / \., i; ' ' ‘,..)—_, „ ___,' . z a .,...13,. \--,-.:„. • \ ..,..." essor 170313 03 / ',..,,, 4U WV. r3,,,71;14,1 i .3 . N \ SCALE 1 i i . !- ' T .... . .. „- .- ... „ . \-14;:\': -:"' \ • . I PROPOSED, \ \ . ._ - FACILITY ) PAD ' L, §,2 ; ) 77- - - -- f ■ ,, j -', — N ----:----- - _ - ,\ ,-,- ',,, ' . ' -'..,-, P: . • F.Jr9,3 OF-403, IX' .' I i TJ `LIJI \*' :' \ 3' (,,, ' ' *'/ . , . DEWS 4 ■ / , ' - ' - A ' ''' c r..4 Wcr '!■ t 1 --. -. , ' ' \... ':' \.' ' : : ' (..7 ' ■ ' \ , ; ,,, : . :':'' \ ' ', ' \ :: ''':., ''''. , , : , ''. t "'''< ) ''''' ."' ' : ' : :■:: ':. ' ' , ,, ' :', 3 ' \ . ' . -•,,, ,,,,, ',-.., ,,,:,,„ „,,,, - .... - - 7" ,,..N.„".../ 1 0 1 .%. , . ( • - - (1 :e 1 '--- - , ,2\,, ,, '''-''',`,..,'-. '',., e&TI ,,,,,,,,„ .. .,,,:_/`''- . .,,' ' ' . \ A '' \ '-''''.=,, '''', '',"- frk• ".` '7\1 WELL - ',„--:' N P k,:---- AD : :;::. v `i ' ..,, ' .`,..._ , 1 S \ .,, .. ' ..... ... Consulthl hle 7.7..r= - . • - 1---:—T \,,,,,‹; ."-.---,, 7IPage • • SURVEYED LOCATION PLOT ..*........:: . ' i h • • F b I X ` � t 1104•31106422" .4 ' ri, \ trw. )' i 4 • a f k t 1 f N & / ti 4 .sue' CM= IV I �t i t is �I - ( 3 '45 y a t • _ / 311.1 -P.1i 1 k s« SE r ■ a r k": -... moor k . -- -31'^.,---, y!` i r i, a 1 . I 9 . 4 i 3lY J **,, 'M t 3 1 k R '' IIi,�l.iti RR c". N# F # le.4*4At. -$ I 1 • t eta a r s#taiala a • e i 2 42 II i i i E 1 R i 1 * i i . 1 • t F 1 . 1 I # if . [....) 7. 6 tit i • s ft.., : 4 F I i i K 4 I • I r 4 • \ 11 • • i R # ( 4 j • i 4 . '‘., SURVEY CONTROL ::.'S 'Cf- �L1sOt.." ::L`40140..3�iJ iar,:.. ITivo. . A; 1i i ■'w tt0'i tt ' K». F l�L L1(t 3 SURVEY t . 1 T r ei " 4th .. 4 4'44 r a` c° PKL. 1 �' f . . 4g 4 ✓ 4i.A 'JI ': t. .. t 4 \ ,— • .� x.. k +p tad wC : i _ p it 1'` , 1 , '° ^°'3 5._ iabsitt 441. 1 psis ins? L t: 4" $ ' _ALE _ r � k.t4t�l�,. , . - • I i- *V 111444%444,43(14 $'*$ "' ,a, a t .: r 4., IA ', afelk Islet Kelm! Gas ST �l g , tali 1 ` LT IASI SUltird y LOCATION MAMMA 1411027 Fi" i.4 ` 81 Page imr • • WELL PAD LAYOUT l 1 I \\\,\ z I I f 145 _. t \\\_.: I - -T E - 1 ter I � , I I A Fac tj ea ( ,'� io' i j E. a _ t ' / / D MA TP a r e / ,f'" -- Shacks ' t b 1 N / LWIDDD r CLU Storage t I : Mud LoggPrs I ii 1 . \ 1 ----j l. • fig �W® M ud Eng. , TIC '1 Seat Launch Creek y _ \ 't az Exclusion Zane I x I m SO Cementing i 1 t� CLU Storage 5 DeW feting Plant GD 1 iV / (labors + \ I I k Truck sfiop I , �- _ k i ' Drum Containment._ t I n- 1 428' t \1 % f I GENERAL WELL DATA Well Name CLU Storage 1 Lease /License Surface Location Est. Spud Date 11/20/2011 Slot/Pad CINGSA I Field API No. RT Elev. above 53.5' Borough Kenai Well Class Storage Ground level 33' State / Alaska Rig Contractor Nabors Alaska Perm. Datum RT Total MD 9,060' Rig Name Nabors 105AC Total TVD 5,162' Comments: none II 91 Page GEOLOGIC PROGRAM SUMMARY The proposed gas storage reservoir interval is the Cannery Loop — Sterling C Gas Pool. The Sterling C Gas Pool is vertically defined as the underground formations comprising the C1 and C2 sands, bounded by the coal at the base of the B5 sand formation (top) and the top of the Upper Beluga formation (base). The Sterling C Pool is vertically defined in the "Pool Type Log" Cannery Loop Unit (CLU) -8 well (API #50- 133 - 20534 -00) as the interval between the depths of 6690 feet measured depth (MD) (4871 feet true vertical depth subsea [TVDSS]) and 6945 feet MD (5101 feet TVDSS). The gross reservoir interval thickness averages —200 feet across the pool area, and average net sand thickness is —95 feet. The original gas accumulation is comprised of fluvial channel sandstones with interbedded silty sands and shales folded in a structural 4 -way dip closure and charged by biogenic methane gas. MD- RT TVD -RT Pore Pore Formation eft) (ft) Pressure Pressure Lithology Possible Fluid (psi) (pp9) Sterling A 5,888 4,178 1,809 8.33 silty sand gas /water Sterling B Unknown in this area Sterling C -1 7,619 4,934 2203 8.59 sand gas Sterling C -2 8,584 5,022 2212 8.47 sand gas Comments: Sterling A & B are transient sands above the Sterling C. They have never been tested in the Cannery Loop Field and are included only as a potential source of gas. The depths are estimated and not projections. Sterling A & B sand pore pressures are estimated at fresh water gradient. The Sterling C sands do not appear to have a water drive. Pore pressures are extrapolated from original reservoir pressure datum plus or minus a .1 psi /ft gas gradient. Surface Location Coordinates From Lease /Block Lines 520' FNL 1764 FEL SEC. 9 T5N R11W Latitude 60 °32' 40.9714" N Longitude 151° 12' 42.2649" W ASP Zone 4 NAD 27 Grid N 2393032.28 ASP Zone 4 NAD 27 Grid E 281844.6 T4RGETS A')aae t 34D 'lTD North Eat Grid Eo<c Gnd Nor th Latitude Loazitude S& pe to Ifti (fti fi (t - : fil 7 • fti 1 1* PreferredT8t Reel REVISED: '_5.- 7618.61 493394 -POP 60 - 4_16.71 141 2391962 SI 6tt'3- 2'29 951 "1 151'14 curie Oca11 '! PS Preferred T, Tce REVISED: 25- 9059 - 316245 431' 46 141 18___6' 230 3312.83 0'32'43161'N 1 1 14 4#9S3't6 rac 'Orrll Targets are in NAD 27 Comments: none 10IPage • SUMMARY OF POTENTIAL DRILLING HAZARDS Potential Hazards Statement To comply with state regulations the Potential Hazards section and the well shut -in procedures must be posted in the drillers dog house. The man on the brake (driller or relief driller) has the authority and is responsible for shutting the well in 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 the Sterling C sand packages and no oil sands have been encountered or are expected to be encountered. No H 2S has been encountered or is anticipated. Gas sands may be encountered from approximately 5,800' MD (4,125' TVD} to total depth of the well. These sands will run from highly depleted to possibly normal gradient pressure. Lost circulation and differential sticking are potential hazards in some of the Sterling 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. No abnormal gradients are expected. The Sterling C sand is expected to be depleted to 380 psia or approximately 1.5 ppg EMW. There is potential for isolated sand packages within the Sterling C to be at original pressure. Original reservoir pressure was measured at 2206 psi at a datum depth of 7853' MD (4966' TVD) in CLU -6. This equates to 2203 psi at the top of the Sterling C sand at 7,619'MD (4,934'TVD). As such, the interval will be drilled with a suitable mud weight to control any normal pressures. FORMATION EVALUATION SUMMARY Interval LWD Wireline Logs Mud Logs Basic with Gas Surface Chromatography 0' to 2,940' MD GR None Analysis(GCA), PVT, sample collection (30' samples). Intermediate Basic with GCA, PVT, 2,940' to 7,644' MD GR/Res 9 5/8" CBUGR/CCL sample collection (30' samples). Production Triple Combo Basic with GCA, PVT, 7,644' to 9,060' MD GR/Res /Neutron 7" CBUGR/CCL sample collection (10' samples). Coring Requirements: None Comments: None 11JPage • • DRILLING PROGRAM SUMMARY CONDUCTOR: 1. Drive 20" conductor to +/ -100 ft. RKB_ Install FMC 20" 2000# landing ring 2. Move in and rig up rotary drilling rig. 3. Nipple up 21 1/4 ", 3M diverter with x/o, 16" diverter valve, and 16" diverter line. 4. Function test diverter and diverter valve. SURFACE: 1. Directionally Drill a 16" hole to 2,940' MD (2,623' TVD) per the directional plan. 2. RIH with 13 3/8" casing, centralized according to program and hang off in the spiders. Rig up false table and make up stab -in sub and centralizer on 5" drill pipe. RIH with inner string and latch into stab -in float collar. 3. Cement 13 3/8" casing. Sting out, shear out drill pipe wiper plug, and circulate drill pipe clean. POH with inner string. 4. Monitor well until cement sets. Lift riser and cut off 13 3/8" casing. ND diverter. Dress 20" conductor. 5. Install and test 13 3/8" slip lock connection X 13 5/8" 5M flanged FMC Multi -bowl wellhead. 6. NU 13 5/8" 5M BOP'S. Test BOP'S and choke manifold to 250psi/2500 psi 7. Set wear bushing. 8. Make up 12 1/4" directional BHA and RIH to shoe. Test surface casing to 2,000 psi. INTERMEDIATE: 1. Drill out float equipment and make 20' of new hole. CBU. 2. Test shoe to leak off. Estimated leak off is 15.0 ppg EMW. 3. Directional dri1112 1/4" hole to 7,644'MD (4,938'TVD) as per directional program. Exact depth will be determined by Geologist call on the bottom of the B5 coal plus rat hole. 4. At TD circulate hole clean. Make wiper trip. CBU and POH. 5. Set test plug and change from Variable Rams to 9 -5/8" casing rams. Test casing rams to 250/2500. Run and cement 9 5/8" casing in two stages. Land hanger in FMC multi -bowl wellhead. 6. Back out landing joint. Set Test Plug and change out 9 -5/8" casing rams to 4 1/2" x 7" variable pipe rams and test pipe rams to 250/2,500 psi. 42" `k.( 7. Set wear bushing. Test casing to;.,42‘psi. PRODUCTION: 1. Pick up 8 1/2" QD505X PDC bit and directional BHA. Drill out DV and float equipment and 20' of new formation. CBU. 2. Perform FIT to leak -off expected at 13.0 ppg EMW. 3. Directionally drill 8 1/2" hole to 9,060' MD (5,162'TVD) per the directional program. Note: exact TD will be determined while drilling by the top of Sterling C2 pick in order to stay minimum of 15' vertically above the Beluga Sand formation. 4. At TD circulate hole clean. Make wiper trip as required. CBU. POH. 5. Rig up and Run CBL. 6. Set Test Plug and test 4 1/2" x 7" variable rams if not done previously with 7" pipe. 7. Pick up 7" liner assembly (200' Liner Lap) and RIH on 5 "drillpipe. Circulate and condition hole. Cement liner according to program. Set hanger and liner packer. Circulate casing and drill pipe clean 8. Pick up polish mill and RIH. Test liner, liner lap, and 9 5/8" casing to 2,500 psi for 30 minutes. Polish seal bore extension. 9. POH laying down drill pipe. 10. Pull wear bushing. Pick up 7" seal assembly and RIH on 7" tubing. Stab into Liner hanger polished bore receptacle. Pressure up back side to 1000 psi confirming stab in. 11. Pick up 7" and space out 7" mandrel tubing hanger. Circulate well to 8.7 ppg KCL brine. Reverse in 8.7 ppg packer fluid. Observe well dead. Stab into polished bore receptacle. Land and test hanger seals. Test Annulus to 1,500 psi. Test tubing to 3,000 psi. Back out landing jt. Set BPV. 12. ND BOPs. 13. NU ADAPTER ASSY, A -4, 13 5/8 -5K STDD BTM X 7 1/16 -5K STDD TOP and 7" 5M tree. Test to 5,000 psi. 14. Rig down and move out drilling rig. Comment: • Drill all hole sections with 5" drill pipe • Perforating will be done after rig release with coil. 'Wage • • CASING PROGRAM MD (ft) Connection API Ratings Casing Weight Hole Size Makeup Size (lb/ft) Grade o D (inches) Burst Collapse Tension (in) Top Bottom Type (inches) Torque (psi) (psi) (kips) (ft I bs) 13 3/8" Surface 2,940' 68 J -55 BTC 14.375 N/A • 16 3,450 1,950 1,069 9 5/8" Surface 7,644' 40 L -80 BTC 10.625 N/A • 12 1/4 5,750 3,090 916 7 "L 7,480' 9,060' 26 L -80 VAM Top 7.565 11,950 8 1/2 7,240 5,410 604 Comments: * The make -up of the buttress connection will be to the proper mark. Vam Top will be torque turned. Make up and Bakerlok all float equipment to joints prior to running in the hole CASING DESIGN Casing Shoe Safety Factors Casing Setting Mud Wt Maximum Size Weight Grade Depth When Surface (In) (lb/ft) (TVD ft) Set Pressure (lb/gal) (psi) Frc. Formation Grad. Pressure Burst Collapse Tension (lb/Gal) (lb/gal) 13 3/8" 68 J -55 2,623 9.4 15 8.5 1,710 2.02 1.52 5.35 9 5/8" 40 L -80 4,938 9.8 13 1.0 -8.5 1,766 3.26 2.46 3.0 7 "L 26 L -80 5,162 9.8 13 1.0 -8.5 1,184 6.11 3.06 14.38 Comments: Production zone is expected to be depleted with potential virgin pressure cells. MAXIMUM ANTICIPATED SURFACE PRESSURE Casing Size Setting Depth MAWP* MASP ** (in) (TVD) (psi) (psi) 13 3/8 2,623 2,614 1 ,710 9 5/8 4,938 2,469 1,766 7 5,162 3,564 1,185 *MAWP = Maximum Allowable Working pressure (80% Burst)* *MASP = Maximum Anticipated Surface Pressure 13 I Page • WELL CONTROL AND CASING DESIGN CALCULATIONS Surface Casing= 13 3/8' "' (2,940' MD / 2,623' TVD) Collapse 9.4 ppg mud wt at setting depth- evacuated = 9.4 ppg x .052 x 2,623' = 1,282 psi Safety Factor = 1,950 psi / 1,282 psi = 1.52 Burst Cc, Surface a) Frac Pressure @ Csg Shoe = (15.0 ppg + 0.5 ppg) X .052 X 2,623' - (.1 psi /ft x 2,623') = 2,114 psi - 262 psi = 1,852 psi b) Surface Pressure = Max Pore Pressure - Gas Gradient x next Casing Depth = (2,203* psi) - (0.1 psi /ft X 4934) = 2,203 psi - 493 psi = 1,710 psi * Assumes 9 5/8" TDs in non - depleted formation. Use lesser of a or b = 1,710 psi Safety Factor = 3,450 / 1,710 = 2.02 Tension no buoyancy, hung in air = 2,940' x 68 = 199,920# Safety Factor = 1,069,000/199,920 = 5.35 Maximum Allowable Surface Casing Pressure MASCP = (0.8 x Casing Burst) - (Mud Wt. - Backup Fluid Wt.) x .052 x TVD MASCP = (.8 x 3,450 psi)- ((9.4 - 8.33) x .052 x 2,623')) MASCP = 2,614 psi 14 1 Page • Intermediate casing: 9 5/8" 644' MD / 4,938' TVD) Collapse 9.8 ppg outside, 1/2 filled inside = .5 x 9.8 ppg x .052 x 4,938' = 1,258 psi Safety Factor = 3,090 psi / 1,258 psi = 2.46 Burst Ca? Surface a) Frac Pressure @ Csg Shoe = (13.0 ppg + 0.5 ppg) X .052 X 4,938' - (.1 psi /ft x 4,938') = 3,467 psi - 494 psi = 2973 psi b) Surface Pressure = Max Pore Pressure - Gas Gradient x next Casing Depth = (8.5 ppg X .052 X 5,162') - (0.1 psi /ft X 5,162') _ (2,282 psi) - (516 psi) = 1,766 psi Assumption under b) is made to demonstrate worst case surface pressure if the reservoir had not been depleted. Current projected depletion pressure of 380 psi at TD results in a negligible surface pressure for burst calculations. Use lesser of a or b = 1,766 psi Safety Factor = 5,750 / 1,766 = 3.26 Tension Hung in air = 7,644' x 40# =305,760# Safety Factor = 916,000/305,760 = 3.0 Maximum Allowable Surface Casing Pressure This assumes the 9 5/8" penetrates the Sterling C in a depleted area and only affects the very bottom portion of the casing. MASCP = (0.8 x Casing Burst) - (Mud Wt. - Backup Fluid Wt.) x .052 x TVD MASCP = (.8 x 5,750 psi- (9.8 - 1.5) x .052 x 4,938') MASCP = 2,469 psi 15IPage • Production Liner: 7" (7,444' MD / 5162' TVD) Collapse 1/2 x 9.8 ppg x .052 x 5,162' = 1,315 psi or Formation Pressure - gas gradient = (8.5 ppg X .052 X 5,162') - (0.1 psi /ft X 5,162') = 2,282 psi - 516 psi = 1,766 psi Choose worst case = 1,766 psi Safety Factor = 5,410 psi /1,766 psi = 3.06 Burst Ca? Surface a) Frac Pressure @ Csg Shoe = (13.0 ppg + 0.5 ppg) X .052 X 5,162' - (.1 psi /ft x 5,162') = 3,624 psi - 516 psi = 3,108 psi b) Surface Pressure = Max Pore Pressure - Gas Gradient x next Casing Depth = (380 psi) - (0.1 psi /ft X 5,154') = 380 psi - 516 psi = Surface pressure is negligible in this calculation due to reservoir depletion. c) Injection to Maximum allowable reservoir pressure = Max Pore Pressure - Gas Gradient x next Casing Depth = (1700 psi) - ( 0.1 psi.ft x 5162) = 1700 psi - 516 psi = 1184 psi Use C as more realistic condition, rather than lesser of a) or b) or c) = 1,185 psi Safety Factor = 7,240 / 1,184 = 6.11 Tension Hung in air = 1,616'x26# = 42,016# Safety Factor = 604,000/42,016 = 14.38 Maximum Allowable Surface Casing Pressure MASCP = (0.8 x Casing Burst) - (Mud Wt. - Backup Fluid Wt.) x .052 x TVD MASCP = (.8 x 7,240 psi- (9.8 - 1.5) x .052 x 5,162') MASCP = 3,564 psi Comments 161 Page • • BOPE PROGRAM Casing Test Casing Size MASCP MASP Test Pressure Casing (in) (per) (per) Test Pressure Fluid Density BOPS Size & Rating Low /High (psi) (Ib /gal) (psi) (1) 13 -5/8" 5M annular 250 / 2,500 (1) 13 -5/8" 5M pipe 13 3/8 2614 1710 2,000 9 (1) 13 5/8" 5M blind ram d ram (1) 13 -5/8" 5M drilling spool with 4 1/16" 5M outlets (1) 13 -5/8" 5M annular 250 / 2,500 (1) 13-5/8" 5M pipe 9 5/8 2469 1766 2,000 9.5 (1) 13 5/8" 5M blind ram d ram (1) 135/8" 5M drilling spool with 4 1/16" 5M outlets (1) 13 -5/8" 5M annular 250 / 2,500 (1) 13-5/8" 5M pipe Liner 7 3564 1185 3,000 9.4 (1) 13 5/8" 5M blind ram d ram (1) 13 -5/8" 5M drilling spool with 4 -1/16" 5M outlets MASCP - Maximum Allowable Surface Pressure (80% Burst) MASP - Maximum Anticipated Surface Pressure BOPE DIAGRAMS Diverter System I , ■ 21 1/4. ,> DIVERTER SPOOL FABRI -VALVE 16" KNIFE VALVE ANSI 300 FLANGES 17IPage 0 0 CHOKE MANIFOLD TO FLARE ELEVATION LINE ViEW "B" PRESSURE 8 5 GUAGE i --- 17 --- f `3; ID 33 2 � Fs 41 7c`s 0 I 6 17 . 31 a } ELEVATION 7 .J 9 VIEW IBi it FROM ELEVATION sr MATERIAL LIST WELLHEAD 18 I ( ITEM I.D NO I DESCRIPTION ti VIEW " A" 10 I 1 AS0611161 3 -1/16' 10.000# CNV 'EC' G. 4' - 177 ..... 3 -1 /16" x 3 -1(16° x 3-1/16"x 3-1, 2 N1168 2- 11116' 10,000# x 23* OAL STU 11 1 t 1 3 F3092AC 3 -1118 10,000# BOND FLAN -- 15 4 27430 3-1/16' x 70,000# VALVEWOI NW -FC" GATE VALVE . 3 -1/16" x 10,000# VALVEWOI J��.(j �, Ht>f _ -_ It 0. _ � 1 t 5 28782 ! "VW-FC" GATE VALVE 31%y ._.___.._ T .�. Qqd - - t #/C t t 6 , N1188 1 3 -1/16" 10,000# STUDDED 5- I] 99 �T 7 I 74192A 1 3 -1/16" 10.000# BLIND FLAN 8 AS0703005 3 -1!16" 10,000# CNV "FC G 3.1/18" x 10,000# VALVEWOI 9 27430 'VW -FC GATE VALVE PLAN VIEW 10 74°054 i FLANGED SPACER i SPOOL . _ 11 I N1105 13 -1/18' 10,000# STUDDED C ^ 12 F3092AC 3 -1,16' 10,000# BLIND FLAN 13 F3092AC 13 -1/16" 10,000# BLIND FLAN 14 AS0703001 3 -1/16" 10,000# CNV "FC G. NABORS ALASKA DRILLING RIG 105E 15 F3268AE 3-1/16" 0 0130# 18.50" AI 10,000# CHOKE MANIFOLD CONFIGURATION 10039800.2 10,000# COTTEC "NH•2 i 16 I 1178 f CHOKE W2" MAX ORIFACE S.S. 17 F3268AE 3.1!16" 10,000# x 3.187' OAI DOUBLE STUDDED SPACER 18 i AS0703008 3 -1/16" 10,000# CNV "FC G. 19 _ - 1 AS0703009 '. 3 -1116' 10,000# CNV 'FC G. TO 1 20 : 3- 1/16"10,000# CNV 'FC G GASBUSTER 21 ; 150703006 3.1!16' 10,000# CNV'FC G. - - -W I 22 t F3268AE 3 -1 /16" 10,000# x 2 -9(18" 10; I DOUBLE ST UDDE D ADAPTE 29;1, 104001 EEC '5 SWAM STME Kt t i 23 ! 9384 CHOKE .; ES TO DISCS MEMOTE CPU 24 I 740054 3 -1116 10,000# x /18' 10,C _ FL ADAPT 2 -9 SPOOL. 25 I AS0703003 3 -1 /16" 10,000# CNV 'PC' G. E I 26 I N1105 3 -1/16' 10000# STUDDED C j____ _j . -, ` x -4 27 AS0703010 3 -1/16" 10000# CNV "FC G {--, 3/4' ' . 28 F30924C 31!16' 70,000# BUNO FLAN . 203 24 25 26 ' S ' ,2 29 AS0703004 34/16" 10,000# CNV 'FC G. �-'� 30 I 74005A 3 -1!18 10,000# x 32.082' O/ \ d aid ; i FLANGED SPACER SPOOL _ 31 i 2.1/18' x 10,00# VALVEWOF { � + MN •FC GATE VALVE %1 � 32 51209 2FEM E THR x 2" 1502 D 2 x T0. E FEA7M THREAD (TAPPED 2 x 1 77 } - FLANGED � . � 1.. � .. 3 -1/18' 10,000# x 14' OAL - ---, FLANGED SPACER SPOOL 34 1 - 3 -1/16" 10,000# BLIND FLAN 1 If '''''' I 35 j 3-1/16' 10,000#. STUDDED 3- I nt 20° 1. -- - ! 30 i � i I ELEVATION VIEW "A" 181 Page • • BOP STACK Shaffer 13 5/8" ( 5M Annular \ / ) 1 1 ....==.. 1 Shaffer 13 5/8" 5M Double Ram BOP ! ow L I I 141 'la - ----' — '---- .■.. 111 .11 --. ki E OE IP - ma Pie Rams p 1 OE I _. _._ L Li MIN _Lii I EI E Li n i j i I rr , -- --L -1 E ti n Li !"-- im Blind Rams _ ..........._ .._ . 21/16U Kill Line milmi MIELISMIN 3 1/16" — : 1 : tri4VT r 4 imp : Choke * ; I ) ) OF *WI : ; *-1 , 1_ ; *.1,-* 4 ' ; ! Line — sawn Emil — I • ._ 3 1/16" 3 1/16" 4 1/16" 10M 10M Check 10M 4 1/16" HCR 3 1/16" 10M 10M HCR WI 10 UPPER UNIHEAD ' ASSY, UHM-ET 13 518-3K STDD BT 1......... „ 2 1/16-5K M120 PLUS GV X 13 5/8-5K FLG TOP . ....■1 . (P150532) . -4. — . , i ,-- 3/8" OD CSG CASING HEAD ASSY, C.:22-EG "7 5/8" OD CSG 13 3/8 SLIPLOCK X 13 5/8-3K Imiliiil 1111111111 P183999 7" OD CSG Cook Inlet Natural Gas Storage Alaska 13 3/8 X 9 5/8 X 7 191Page • • Blowout Preventers The blowout preventer stack is a 13 -5/8" x 5000 psi annular preventer, a 13 -5/8" x 5000 psi double gate ram type preventer with blind rams in the bottom and pipe rams in the top and a 13 -5/8" x 5000 psi drilling spool(mud cross) with 3 -1/8" x 5000 psi outlets. The choke manifold is rated 3 -1/8" x 10,000 psi. It will include a remote hydraulic actuated choke and a hand adjustable choke. Also induded 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. Casing Test Pressures Casing test pressures are based on the most severe conditions expected either while drilling or during the production life of the well. Minimum casing test pressure is 50% of the 5M BOP rating which is 2,500 psi for all casings in this well per AOGCC 20 AAC 25.030 (e) however, a 3,000# stack is all that is required to drill this well. A variance is requested to accept a minimum casing test pressure of 50% of 3,000# or 1,500 psi. WELLHEAD EQUIPMENT SUMMARY Component Description Hanger Type Casing Head CASING HEAD ASSY, C- 22 -EG, 13 3/8 SLIP -LOCK BTM CASING MANDREL HANGER, UH -A, PREP X 13 5/8 -3K FLG TOP W/ TWO 2 LPO, PREP F/ FLUTED, BODY, F/ 13.505 BOWL, 9.625 API UPPER UNIHEAD ASSY, UHM -ET, 13 5/8 -3K STDD BTM TUBING HANGER ASSY, TC-1A -ENS, 13 5/8 X 13 5/8 -5K FLG TOP, W/ TWO 2 1/16 -5K STDD OUT, FLG, 7 VAM TOP (29 LB /FT) BTM & TOP, Tubing Head 13.505 THRU -BORE, A 320 GR L7, NON -EXP BLTG, EE- ISA BPVT, 8.985 EN, W/2 CONT SCSSV 0,5, P -U, PSL 2, MONOGRAMMED, W/ LOWER AND PORT, COMP PACKOFF BTM, DD -NL, P -U, UPPER LDS, PSL 2 ADAPTER ASSY, A-4, 13 5/8 - 5K STDD BTM X7 1/16 -5K Adapter Flange STDD TOP, L7, F/ 8.985 EN, EE, K -U, PSL 2, MONOGRAMMED Comments: Hanger is prepped for two control line penetrations. 20IPage DIRECTIONAL PROGRAM SUMMARY Well Profile Data Design Comment MD (ft) Inc ( Az ( TVD (ft) Local N (ft) Local E (ft) DLS (°/100ft) VS (ft) Est RKB: 53.55' 0.00 0.000 242.191 0.00 0.00 0.00 0.00 0.00 KOP 1000.00 0.000 242.191 1000.00 0.00 0.00 0.00 0.00 End of Build / Csg Pt 2939.50 58.185 242.191 2622.91 - 421.28 - 798.74 3.00 756.75 Begin Final Turn & Build 5775.32 58.185 242.191 4117.89 - 1545.48 - 2930.18 0.00 2776.15 • Tgt Entry / EOC 7618.61 80.877 340.508 4933.94 - 909.60 - 4216.71 5.00 4115.56 9 5/8" Casing Pt 7643.61 80.877 340.508 4937.90 - 886.33 - 4224.95 0.00 4125.89 TD t 7" Liner 9059.95 80.876 340.508 5162.48 431.95 - 4691.56 , 0.00 4711.40 Comments: Vertical section calculated from a reference azimuth of 275.26° taken from surface location to bottom hole location. i 21IPage • I POTENTIAL WELL INTERFERENCE: Clearance elipse of Well Distance @MD uncertainty (ft) (ft) separation (ft) CLU #6 526 7688 91 CLU #7 774 8392 281 CLU Storage 2 49.69 0 36 CLU Storage 3 99.59 0 37 Comments: No serious interference exists. See attached directional plan and anti - collision analysis for more details. DIRECTIONAL SURVEYING SUMMARY Interval MWD Magnetic Gyro Comments Survey Multi -shot Multi -shot 0 - 2,940' X 2,940' - 7,644' X 7,644' - 9,060' X Comments: 22IPage DETAILED DIRECTIONAL PLANNING Cook 1141 Naiural Gas STORAQE CINGSA (Cook Inlet Natural Gas Storage Alaska) Loc4tion' Cook Inret. Alaska (Kenai Peninsular Z-lot Slot 01 Mill. Field_ Cannery Loop Unit f.N.AD03) Wel: CLU Storage 1 BAKER Facility Gas Storaoe PO WelltiOnt CLU Storage 1 HUGHES Plot reference vrelpath is CLU Storage 1 Verson True vertical depths are referenced to Nabors 1D5E 4ZTEi Grd System, t4Ace 3 I TM Alaska SP, Zone 4 (5004), US feet Measured depths are referenced to Nabors 10$E (CUE) ktonh Reference TN* ndmie - _ . .. . Nabors 1XE fRTE) to Mean Sea Level 53 55 feet Scale True d<stance , . . . Mean Sea Level to Aiwa ime At Slot, Slot e I 1 0 feet Coordinates are in feet referenced to Slot Depths are , I , feet _ Creatto by' Kintner* Oil 25-0Ot-11 i. 4110 i 0 ll' enema 5tH 4 -1 3 '. = Caeoxbr .....• ......, , Easting f ft) 400 AO) 0 SO MO < 1000 +KOP fa . P i Kr lode 4 t roe Sr c1- . >ZED. ZE-01 Slim 01 air Ire 11115 0 0100 MO e \\I \ r gm, VI ood ' C-12;oe el smut(' t.eace -KO 1 rr g . a r IluM , Cog R. VI 1 VC sing :west, ...."'''''. ; 400 > N. 41.1 ' N otiViCal]: Zi-:.ct-11 ... ,..-----'-V-- S s... ...," MOB N. .' 4010 _----' sew IL I, d -100 Ihrg,IFI■g non 1 5415 SCCO f 37 MOO .s ., — 0 Mee REVQED =5-Ort- F. SIMoosolg rorrnalare PE .relefreg Tao Toe RETIED: ZE-Cco-11 .... 4010 400 5 NS MOO SOO /COO 01100 MO WOO 4 4500 WOO MO COCO Vertical Section (ft) ba.■•••■■•■•kle Ur 4 Z olP voet•Mnt OM% toes 231Page Cook Inlet Natural Gus IFSPaill STORAQE ,- , CINGSA (Cook Inlet Natural Gas Storage Alaska) BAKER Location Cook Inlet, Alas*a (Kenai Peninsula t Slot: Slot #1 HUGHES Fleid Canner? Loop Unit (NAD83t Well: CLU Storage 1 Facility Gas S$11 e FML 1111 Viefiblife cL.Lpitia.4ae i Easl^c ' Sai....a.IZI - 7* -, - 1 . 7 I 1 I 1 1 I ° -575 1150 I - -1 100 VI i -MO 421 1 -200 -VI I -150 -IN -co 75 - I I -10 o I I ., .,, tecitAct vatr i c ofO'as 4 VIOSIIMAI crt4 14446 1111 11:—. ... o 0 - ''..,., 41E4 Atilest ift leteltileed la NOM 10111ortit ti- 1 :-, ater At4.011 711 ...1%*3 :-1 2:Dne 4 10 . : *ft 120C meiv.reci 00,01: re. nftrerzeo to r4 axes 12515 £117t1 "kia0ors 10E ATE 13 Utz! Zes Lvov 13 1.1" Vey 2 s3 Leve la MA r+e = 41 Okat 00 g s C •ert :101,3 3re '4 lett -11 .... . :morttOlates are e 10 0 _ , S:taket try ,304 cm 21-00.1 1403 410 - + Sid it 40 • laze+ -.. ' lne4. -- ... - -To - - 40 ...,--- 111410 _,,,, ----, --, I 7„2 Stool, . -100 - -- - .,---- .,`"--*- "..----- Wall ' -... °.' 10004„r ... •Eili P .3 .....,-* ,......"*..- -VS . .* MI ,,, ....-^ ,,-- .-- 400 1 - _..- z13 - 11-*-- 2m52. 0 ----- -,, .-- AN .u -4" 400 -.400 „-, 1200 011 ■• ... MS teco 400 - .: ., , tt, --100 . I it , e 0 J I I I I I I I 400 AO 41$ 40 .100 4110 4U. .11 400 44 .1 .14 .100 m 40 40 itopootimot•SI Liam° Olt) 24IPage Cask Inlet Natural Gas Fail" STORAQ,E ,- „. CINGSA (Cook Inlet Natural Gas Storage Alaska) BAKER Location: Cook Inlet Alaska (Kenai Peninsula) Slot: Slot #1 HUGHES Field: Cannery Loop Unit (NAD83) Well: CLU Storage i Facilitv: Gas Storage Pad Weflbore: CLU Storage 1 Sas, goet..501 Ealing (ft) 460 416 400 471 410 -784 .700 478 440 408 -600 471 480 . 471 480 -486 -400 476 I s I I I I I I I I I I I I I I I I I I MO ... - -176 Rot femme weRath it Citletorage 1 Verrovn ME True ,ercca' Lintels are referenced to Nato E ATE Gra Orden NAME TM A=1..3 :N., Zone 4 tina4), UZ feet aura depth: are refererceo to Nab= 10E.E. RE I r,Irrin Re Tno nen =CO 400 - 2236 4120 1 Nalxra IDES sRTEt to Mean Cea Ie.* S3 at feet 0c ale Troe cl stance Mt ea level to Mud tat At Wet Stet Ortt 0 Reg Otani: are rt Vet OCKWatatateS are it feet referenced IC Stt C.reatea by. xrearcP Cat 2E-Crtt-t I -018 - - 4668 4111 - - 4110 2.2D3 1 421 ■ -5 2403 400 . ---'"-'- - 400 401 .. _ -- - .9211 g ,F ------- ism c au 2 3 460 - - 450 13.37EM Cating ProductIon 41011 • 1E00 "600 TA 416 - V 13.378in Caling Surface End of Etna r Cop Pt .0933 — -41$ 40 ‘u.: - -4110 474 C - 13.3751n um ce Zurra 4 0 0 - • r , I 1 I 1 i I I I I liO3 0 14 I I I I I 1 I 460 496 -100 -776 -780 421 -700 471 460 -1126 400 4711 -660 421 -000 .471 -410 4210 -400 -VI Eastng (ft) 25 I Page Cook Inlet NatuTal Gas STORAQF -,.. Lo CINGSA 4Cook Inlet Natural Gas Storage Alaska) 13 cation: Cook inlet Alaska *ems Peninsuia Slot Slot el iill Field: Cannery Loop Urut (NAD83) Welk CLU Storage 1 BAKER Faotoy: r3as Sae Pao Weill:ore:. CLU Storaoe 1 HUGHES •..... • •••. • Pr 4. -ow -MOO 4150:3 -0400 -CO -2200 -Aft •000 -1000 -1000 -1700 -2120 -160 -1100 -1100 -1520 -1100 -1000 -000 -110111 1 1 I 1 1 I 1 1 1 I 1 1 1 1 I 1 1 125 Cat tt-ttttl-tt t,.- I Ftat retttact . tt . r." . "t- _ :went t Venter *6 1 450 ..- Trot ...ett:t I t• - •*-7 7". 7 katOn ',riff Irrin ::,,,zi rj item hdlogi Tkt A41.3 SP. :17 4 , i2G• 1,1 XVI 17-Stla C AIM . g Ad 011.6.1 tela PI ..st- 'etfthr.t3 la l'iiteeS tD,if Ant .--,-- ^...,e1 24.S11 Mt w- .ra te.• ,. ,..... tit >..2 tsat t -t.,t• I . t vet Uttyr• me tt tett -500 ■ i r -KO Comiraltn 2 '''. "- "et tu Cv: Deatel tV:i ,0 ' : t - ,'''''' • tE X =to t ...ACC ...-----' 4110 .. 2mt -300- ■'-1100 X3 re" 17.33 P I .. a ,- .,... - lit4 U00 It= .., .1001 7,i, •111X1 ■ ...MO 36CC VW NV al -1:90 ...12110 Itte- 300t to - 1:-33 Zett 0 11 f 0' -ON -WS 4700 41600 .2600 AIM .2600 4WD -2100 .2000 AOC -1 11120 4100 100 -We .41110 .1 121 -1000 4100 -000 .16000.. .17,00 - ' ' - ' E......:"-u 26 1 Page Cook Inlet Natural has Vigil STORAQE ,.,' , CINGSA (Cook Inlet Natural Gas Storage Alaska) Location: Cook net Alaska (Kenai Peninsula) Slot 540( #1 BAKER Field' Cannery Loop Unit (NALX931 Weil CLU Storage 1 HUGHES A .... ...... " I 4,44 ...wit Easting (fp . .441111 4100 41100 4100 41100 4000 4000 47141 41100 4000 4100 4100 41100 4100 4011/6 41100 4100 4700 4000 I 1 I 1 I 1 I I 1 I I I I I I I I \j'i or*.t.trtrce aeltatt a :•- . :47, ""not retati dealt% an r4,1 49 4 Jaton IC SE TrrE Ott at44t, 404139111.. TM &asks a* Vit.r A ,91:14).1.* itet Op 44 V rattli4etattatat 944P tritfrat 44 44044I milt iii-t Point 1triolto4 it l'not nowth ... 400 .0coon %al Ale,to Mt a* arta1,*.*1 49 99 ay. atat 344rt tittaatt ata Le 4ti to Mut t a t ,41 ! I et Cow 49 I , a rev Dainty are * 4tet , v. a 4 3' Cardna PI :aerartzes are m teat rerre = ::,ct Cmatet ty jaattach an 34.0c1-1 40tt — ."'t ' PS. Preened TO —4* REVISE): 2.4.-O&11 . 4M1 Tpt Erst E:CC • 1000 .,* )4C0 04e .''''' 4IL13 3e 4100 0* ... 4100 4303 - 100 ■ 39r 41100 7 ,. P 4.1C „..-- C ,--- -- 4 0 AO ..* 2 44441 aies -1100 — .. 4100 sintin El4sa 74r a Sot 41-. ,....."`' AcCS9 , *WO 0. An ,,,,' 94CC 44 400 0 4430 4300 .... .... 4703 39C - ** .. 4CO3. 4100 ■ — 40:43 .,..„.") .... 0 Vt4 447' 4,, - 4000 400 I I 1 II la „11 I iL .0 i IL i i ) I I 4400 4100 41011 4100 4000 ' ' 41100 411100 4700 4100 4000 4400 4300 .41013 4100 4000 41101) 4100 4700 -MOO -MX Easting lfti 27IPage • I I Cook In et Natural Gas . Fritill STO RA ,,, , CINGSA (Cook Inlet Natural Gas Storage Alaska) BAKER. Location: Cook Inlet Alaska fiera .eninsula= Sct Slot *t HUGHES field Cannery keep Und NA; .€.3 : Vi40 Ctl./ Stow* 1 Paten, Gas Ske3:2*Pa* Welltsome CU. S}C 1 rg it; 4300 4200 4130 - 5000 -4900 -4000 -4790 -4000 -4500 -4400 4300 -4200 4120 4600 I i I I I I I a a I a 0 0 zo I 800 = . 803 *sac, . s cll. 22, , V 're:2..222 222, le• 2 la %WY , ,:tX . 2 , . -. 4 .. 7.,..2•••■ ,■,.$, MI 42.4 ,..2 :A+,, ‘ s222.2 2 **122.1 'CIE 4- 5 .v.2, . er r sr, e ''...2 .W2 - 00 2 "Pe3^ : rt. _22 555: ,... : :2 e That a S MOO mo - r,,,,- :r, ,,,, ., ....- -, ... : -,.- : r- r :-..-- :,--,.. J2 ” ..e2 - 7009 56x 4,..4, , .15...,r. , ' WOO .... MOO 4 ti 600 . . coo ataa - -1 500 P5 Preferred Tot Toe REVISED: 25-00-111 I'D r 7" Loer kW. . 400 300.. .0 300 .., ND 100 rr. .., go 0— -0 \ 2 .400 - — I i IC i Se ..... 400.. _,,,300 , u . fa ci d 16-400 ZEOC ,e 400.. WO ...-400 5430 .1100.. . -600 37,00 / MO 5000 1 •1C33•.• / . -000 4E00 kf ,,- \ 14 \ . ;... -702.7/ ,..1-6 ‘..7 -700 8500_, Cf'" 6200,*r 0000 4010. 'it0Y --' at - ---....,...,_„ 4„.„....„ 7303 /800 ICC" 7„,, 70121 64C0 ira . Cl'i atio9 --- sew .1 400 0400 --- C4,4 P5 Preferred Tot Heel REVISED: 25-Oct-11 0 Tot Enty r ECC rAk, 41180.= ",.‘)."F'' . 4300 I i 1 I I I I I a. I I e I I - 8300 -1200 4190 -6000 -4900 -4600 -4700 -4600 .4906 4400 4000 4200 4100 4000 ELIE: r'Ci if 28IPage WELL CLEARANCE REPORT OFFSET \VELE C LE.-ILR-tNC E. Stl. BIARIS 1 is Off:et N.Vellpath: :eler ted) Ratio: ar e calculated in C. lo:e:t Approach plane C-C Clearance Dr.tance I AC R Separation Ratio Ref 3,1in C-C Di4errinit Ref MD of Min 111in Ratio AC R Offset ': Offset Offset Orket Offset MD C lest Dist dr .:in \W 1.0n. Ratio Ratio Dag from Stems Facility 'Z Slot , Well Wellbore Wel/park (ft] [ft) (ft] :ft' iftl (rat Stony Pad Sk4 *2 1 C1.12 . Sten IN 2 I CiT: Storage 2 IC1.1.1 Storage 2 Version 06 0,00 49 69, 6S00 00 .., ' - 3, 4a 1 20 7100.00 PASS .......... . - N/WD 19. 5 0.320 ' 761111,721 ''': :4 7638 7 :1 III' f7. ' '-■ 111150S PASS _.,,......_ _ . ......,- ......._ MWD A97.10364> 1092.34 - - .4 1 832 34 3:'" 2 6.Z 9059.95 PASS Pad .3 'CLI.1=11 ! =I ". 'CIA: ol 1 MW 0-93.0i ;egg 9.z f ".: ', PI 9 V E900 VO 3 ;7- $900 00 PASS Allik Gas Storage Pad Slot =3 C12127 Swage 3 CLV Storage. 3 OTK MWD 21' „. ...,.„.,,,.. 4 00.00 400 .C.,01 if093$ 55 3 7$ s.3.8 5'5 PASSP Mir : T7L1 M71. Ti 0 ' 9049,95. 1131.441 9059 95 9059 ;4 1 Et c:• c 4 PASS Gas Stoup Pad 'S:Z" r ' - ' - ■ CL Swine 4 1C1-1; Sr.: :a re 4 : :37:ITT/I - OuTral; 14111 26 315.34 148.1 315 34 67360 5.61? 6736.07 PASS i &as Slutafe Pact S:-. CLIT Storage 5 ICU: 7:..' rra.* 5 1:1..US:orage. 5 Vertu:m*7 0.00 /99,4-6. 300.00 61'00 .1. 5.81 020000 PASS Pad =1 CL=:. Cr:: . C::.: =1. !.f.'"A=.1 20C-c7 *7:12 1: 1;1 1:1' 11 E 15' 8250.83 PASS KIS I 341 /2113-3 411•13-8 111:13-3. 10.t.'1.3-3 bacslinatua 02:1:4" 11.-5506' . 7437.50 423.4 7 3 7437 50.1 1250 2 12.50 9649 PASS CL.1.1 - 1 - 2 - 1 ";'`.° - 167.5i1= '1.1°C 4 ' :2 ':: . „ =: ',I:1: .... iC112 :4=4, ;. 1- Z.: $105.00 1105.00 3150 2', 12 . 1:.: , . i' f P .9: PASS 'Pad = i C"...f.'... ,I..:: =: C1:: =. 3.„....1.1... 2-120:12 -- 1 , 1.:1: : :LI' i - T" t: SZ!" :: :.: c. ! P.A.': 165-9100' : 7000.040 3697.44 7000 Ool sz5o. 7$ 14.33 ,-. 9 Y. I :,,..'":“ .--4 14.7 12 PASS 9059.94 PASS _ , Pad 113 ICLL ICLUI4 IGLU 04 POMS ' 0-16500' [ 0,00 319111] 9059_951 3,250 - 4- 15.31 90 PASS 1 , CLU *10 ICLUI10 CLU 010 MWD I 16.4450' 7100.00 5010.10 7100 00 5250 34 20.74 9059051 PASS S 29IPage • . PLANNED WELL SUMMARY SHEET Cook inlet Natural G.ti 7 T R CINGGA 4Cook Inlet Natural fins. ~3t s Alaska) ° , ''t t.eOrt]/4 etiti WiCm. dtLYis iNiei Akirgiiiiill aCr SW ie BAKER Mid Cluilem ' tisi Wog t L0 0suoi i 1101116HES Pk( leirtenti.Yt tiortillen s. Celt Sate i* 1 `M`Ielic4i ilia Tom meii. ai eetit i ka rift letcet tsd tb Ptak 1DS.F 1 s taut Eitalitt Avoid a TM Aiirsi i Ez. -_1` r = ::X4 us tif: keir.'r ttte de e* it^t rcretreA "It t•11tt tare ALFA rah Flettreree Tres with Nair% 1i., rc-71 k` Mtge St at Impel 53 55 reset Et:Mi: Tiliis Mean Eta Lemi 33 Nue lie iAz 5k( Eta 1kf't , :t Tnt +K tit aft DI IDA C..f.:'ilroii3eia ko kre refetfttal tt. Slot Crittrtni bi Offiktrett en :5v"Ye'! -'i'1 Location a'tio13 l nforrr shi n Fact 1*,{ N3-•;e Cold E3sf iLiS f i We North s llE. ft Lottme LcrErtiiie C.x :Stowe F]d 14'n293' :.53L ra EM 63'31E2.01E'T'ti 1 `1 4e. °h 2 - c: Lx3 ti It E .1. Cold Emi 1115 ft; CM, North 32. It Lt de Lcr+ 'isde Sctt1 .: -w =.M+ 14218 4..''C1 2313.C.a3i..:_3 £i3 si 1 - 1 ="- .2EE'Vo Co- -e1: Etzt dxatcri cnstged per C Semi e.rt31''. 5-t a}l# Na tom 135E iRTEi 13 M33 =:re tAt Sot 5#7i x"°!; w3.E1 Mier S Le ;r`tr Mkid Me +At Sot S).141 1 C1t *Mt= fail" RTEi 17 Mew':':. So3 Uwe E3.551 Well P Data re--An ;xi"1tsert IC t'ilt Mr en A z i I') T ' Z t t t L o c a l N t" 1 oc l E iii ME i " "i MT; 1 0%3 I'_ Er! RIO: 53.55' Ct133 631XC C42.1E1 3 C CtIS3 0J30 C." 3.CC KCF imam JCX 14:.191 13M. 33 Ct133 CtD] C.3C 3to Snd t' Btttd r C Ft ZE?9.50 Ea isE 3 .13+1 ?5 51 1.:9 -? ,Tt 3.X Tsa.'z Seri =nal hire a eau r7E.:c 53 1@E =42.151 411719 -15 46 -:33: C.3 :1:E:fle T171 Enty 1 EC K. 7"E.1E.51 83E77 3.4C.31CtE 4332:54 - 30{,63 -.._!E 5.73' Y1E1SE6 5 sir C:mrr Ft 7643:51 wart 34L'.ME 4337.9 -!513E.33 - -_:- 3E G.31: •2 'x1E TO") )Liner 3C55.95: 63.57E 34II.ECt =_1 338 43':35 -453. ' E C:7: ='11 All Tarts Mary MFSt:+ rift noolm. L lI) ti.°,' in= L Mt Gist %sil =fit ".iirfe.,t1"Sit -Litinida Lingisteis t o r m o r t m t rp[ k l m i l tllreteLet 2t•tit*-t I RUM V . 1 4 -OW Mt mot:: %t r t 4 t 1 .Xt miora.. St etr:' '1l'.#tr' 15,1414, i "4' <rt #'rrM1niei TO: 3zii Nt'w+'t LL' 7:5-al :ii50 ict 511 :1%.40 411 :f wit n! 14 tract at 231=x13 to &I" .to. eon) Ittrt 471Mia lie and Casing Ser.tion 'sari: Lid Uri L Wit: dirt tril Ind Item 1 0D :tii IV igt iriente f4 : r4tz IN TA'U -Yt LANA h Inl '.sam'r le, Legal It eel tmt r m AAA r. -.. l'rmAtI AN cm littDC !MAO C00 I'illit S'i4 f1'IC 0 . DV ac - . - ' .. i :a' •g y,'lr 'ding %Air* ti ea .MSS he tC 5 00 C'i..,�' AP WM 0 De' -.'t ::1: -740. _i ':.. L :42 ' . P °asrsWir -nidMa C - : oa 71542 tit `:Aoe.±'. ism !SL*; lltt Scut 0 D , : -•" 4=41.2 =IL 'Cizt-a: e ;':L'rsr •4-43 VI 090te lettl.:?3 ♦milit I! 334 «DGrtM -4 -:. '. ..,., :t 4fgt te Z. _t.:.a ;n '. SuNey Program Eb•t kV :7;i Ere Le , Y.i T t Pbiet L:,a '..."2" - :' mesa: 'Welton 53._ =5 2939.53 OrritS4 t nTrat its gtC ) YL.! ;3;a'3pe 1 2335.53 'S =3.€1 A1.9GTrac C3 .Aufa:lr* Z3 42./4 i l SL? i 4.3r3ce I 7543.51 ` ir_.55 Orr oak 01Tr* 1Etarclott CL'.i"31z I Bottom Role Location s3ii 'rc: _. 7ea 1=1 t. •. tarot r 1r {lid rug soon; zee •1i1:.,015it: Latium +i mom. le 1511 7 ittl .la °;ti';,*41 V.11 4'.' -4 St 510 '14t1 TIM Al 3.'e !it:`% !C 41 I45 3. .^;.';a: 30IPage S S DRILLING FLUID PROGRAM SUMMARY Casing Hole Depth TVD Mud Mud Weight Additives Size Size (MD) (TVD) System (ppg) (in) (in) (ft) (ft) Gel, Gelex, Soda Ash, Caustic, Barite, Polypac Supreme UL 13.375" 16" 2,940 2,623 GEL SPUD 8.8 - 9.4 Flo -Vis, PolyPac UL,KCI, SafeCarb (F /M) , Barite, LOTORQ Caustic, Congor 404, 9.625" 12.25" 7,644 4,938 6% KCL FLOPRO NT Sodium Meta Bisulfate 9.2 — 9.8 Flo -Vis, PolyPac UL,KCI, SafeCarb (F /M) Barite, LOTORQ, Caustic, Congor 404, 7" 8.5" 9,060' 5,162' 6% KCL FLOPRO NT Sodium Meta Bisulfate 9.4 - 9.8 Liner Comments: See mud prognosis for details. The mud system from the intermediate section may be utilized in the production hole section Instead of building a new mud for that section. Sized CaCO3 (SafeCarb) will be used to control seepage losses and aid in wellbore strengthening. DRILLING FLUID SPECIFICATIONS Plastic Yield API Funnel Depth TVD Mud Wt Viscosity Point Fluid Loss Viscosity LGS (ft) (pp9) (cp) ;(Ib /100ft (ml /30min) (sec /qt.) pH 0'- 2,623' 8.8 -9.4 15 -24 >30 <18 70 -150 8.0 -9.0 <6 2,623'- 4,938' 9.2 -9.8 10 -16 12 -18 5 -7 30 -50 9 -9.5 <6 4,938'- 5,162' 9.4 -9.8 10 -16 12 -18 4 -6 40 -50 9 -9.5 <6 Comments: None 311Page • 0 SOLIDS CONTROL EQUIPMENT Item Equipment Specifications (quantity, design type, model, flow capacity, etc) Shakers 2 x King Cobra , Brandt Linear Motion Desander na Desilter na Mud Cleaner na SWACO model 518, 75 -140 gpm at Centrifuge 2,500 to 3,300 rpm, 180 -250 gpm at 1,900 rpm. Comments: Additional equipment on site will be a Swaco Model 518 centrifuge and tank package to de -water discarded drilling fluids. The water will be re -used to limit disposal volumes and the solids processed, tested and disposed of in the Kenai Borough Landfill. CEMENT PROGRAM SUMMARY Casing Depth Gauge Top of cement Ann Vol WOC Open Size Hole Hole To TOC Time (in) Size Excess (hrs) oess MD TVD (in) MD TVD (0/0) (ft) (ft) (ft) (ft) 13 3/8 2,940 2,623 16 0 0 212 5 75 9 5/8 7,644 4,938 12 1/4 0 0 441 24 15 7" L 9060 5,162 8 1/2 7,444 4,899 35 8 50% Moc Water Compressive Casing Cement Density Qty Yield Slurry TOC WL FW Strength (psi) Size Slurry Description (lb /gal) (sxs) (cu.ft/sx) (bbls) MD (cc) ( %) (in) (ft) Qty (gal /sx) T 8 hr 24hr ype lead Type I /II 12.0 784 2.41 342 0 14.51 Fresh NA <1 100 350 13 3/8 tail Type 1/11 15.4 277 1.22 60 2574 5.5 Fresh 252 0 250 2,100 lead Type 1/11 12.0 521 2.41 227 3,500 14.51 Fresh NA <1 100 350 9 5/8 tail FIexSTONE 14.0 196 129 45 7,037 4.1 Fresh 8 0 150 817 2nd Type I /II 12.0 486 2.41 212 0 14.51 Fresh NA <1 100 350 stage 7 FIexSTONE 14.0 234 129 55 7,229 4.1 Fresh 8 0 150 817 9 5/8" cementing will be performed in two stages using a hydraulically actuated stage collar at approximately 3,500' MD. Comments: See cement prognosis for details and spacer specifications. 1 I 32IPage 1 • REGULATORY WAIVERS AND SPECIAL PROCEDURES 1) AOGCC Regulation 20 ACC 25.035 (e) (1) (A) for an operation with a maximum potential surface pressure of 3,000 psi or less, BOPE must have at least three preventers, including The Nabors 105ac rig has a 5,000 psi BOP stack and 10,000 psi choke manifold as standard equipment. The maximum potential surface pressure is less than 3,000 psi and CINGSA requests that the AOGCC accept CINGSA's determination under this regulation that only three preventers are required. 2) AOGCC 20 AAC 25.412 (b) The packer must be placed within 200 feet measured depth above the top of the perforations, unless the commission approves a different placement depth as the commission considers appropriate given the thickness and depth of the confining zone. CINGSA requests to increase the packer measured depth distance to 400' for this well. The intermediate casing string will be cemented into the top of the Sterling C, however, the expected top perforations for this well may be up to a hundred feet below the 9 5/8" shoe. The exact location will not be known until the logs are processed. The liner lap is designed to be 200' to provide optimal liner lap isolation with cement. The packer is a BakerHughes ZXP liner top packer. CINGSA believes the primary isolation of the reservoir is the 500'+ of high compressive strength premium cement used for the tail slurry of the 9 5/8" cement job. Secondary protection is the cemented 7" liner with calculated top of cement above the liner top. Tertiary protection is then provided by the liner top packer. 3) 20 AAC 25.035. (10) the BOPE must be tested as follows: (A) when installed, repaired, or changed on a development or service well and at time intervals not to exceed each 14 days thereafter, BOPE, including kelly valves, emergency valves, and choke manifolds, must be function pressure- tested to the required working pressure specified in the approved Permit to Drill, using a non - compressible fluid, except that an annular type preventer need not be tested to more than 50 percent of its rated working pressure; however, the commission will require that the BOPE be function pressure- tested weekly, if the commission determines that a weekly BOPE pressure test interval is indicated by a particular drilling rig's BOPE performance; CINGSA requests to perform BOPE tests at intervals not to exceed 14 days in accordance with the following regulation: Nabors Drilling Rig 105 AC has drilled two wells since coming off stack and performed all required BOPE tests in accordance with the AOGCC regulations as witnessed by the AOGCC inspectors. This request is to accept CINGSA/Nabors Rig 105 AC operations as proven in regard to BOPE requirements and take them off of 7 day testing cycles. BIT SUMMARY Interval MD Size Type Manufacturer Model No. IADC Recommended Estimated WOB - RPM ROP - Ft/Hr 0 - 2940' 16" ST HCC VM -1 115 55 klbs - 250 120 2940' - 7644' 12 1/4" PDC HCC QD505X M223 38 klbs - 175 100 7644' - 9060' 8 1/2" PDC HCC QD505X M223 25 klbs - 175 75 Comments: See bit prognosis for additional Information. 331 Page • • HYDRAULICS SUMMARY Rig mud pumps available are shown below_ Max Displacement Qty Make Model Liner Stroke Press@ at 100% Max Rate Hole Sections (in) (in) 90% WP efficiency (spm /gpm Used (psi) (gal /strk) 6 9 3232 3.3 130/430 Surface Gardner 2 PZ9 1000 5.5 9 3847 2.78 130/361 Intermediate Denver 5.5 9 3847 2.78 130/362 Production Tabulated below are the expected flow rates, standpipe pressures and nozzle sizes for each hole section. De th•MD Hole Pump Standpipe Min. ECD Nozzle p Size Rate Pressure AV Size Remarks (ft) (In) (gpm) (psi) (fpm) (ppg) (32nds) 0 - 2960' 16 - 18 -18- 16 650 2,000 70 +0.2 18 -0 2960' - 7644' 12.25 650 2,000 130 +0.3 5 x 13 7644' - 9060' 8 450 2,500 233 +0.6 5 x 15 Comments: See separate hydraulics calculations. Annular velocities in the 16 ",12 1/4 ", and 8 1/2" holes were calculated using 5" drill pipe. 5" drill pipe will be used to drill all hole sections to maximize hole cleaning, while minimizing stand pipe pressure. 34IPage • FORMATION INTEGRITY TEST PROCEDURE Surface and Intermediate casing shoes will be tested to Leak -off. Prior to drilling out of casing strings, test BOPs, and casing to the specified pressure listed in the BOP Program section. Plot test and record volume required on the drilling report. Leak -off tests (LOT) are to be conducted as described below: 1. Drill 20' to 25' of new formation below the casing shoe and condition the mud to the same properties in and out. 2. Pull drill bit into the casing shoe and close pipe ram preventer. 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 drill pipe pressures at 1/2 bbl intervals. 4. A running plot of pressure versus volume should be kept by the Drill Site Manager while the test is in progress. 5. 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. 6. Monitor and plot pressure drop and time after shut -in for 10 minutes or until the shut -in pressure stabilizes. 35IPage • • PROPOSED COMPLETION SCHEMATIC CTNGSA CLU Storaore I Proposed Completion Schematic TN::: wiawit- a 5, .5colt mv;riztlowl 1." Trte - 7" 50000 toc:lete iwth SW ,i ..' 1..,- 1 0 ' 1 3 ■3 7. dinVZIO 1 V 5' 1 ] V .7 1 NE 4 1 " , — 1-12.11 Via-eke Reziesz 3 Li 15:: 74.13 :fig NC . 1 . 1 , - i ! Li 3,S :755 37 Sa±c' e Ca kio 2,.f:23' - 76. - D -: MD 1ti* bat C mewed ID Strixe 1 : WV= T 'relit; . - - 7,444 MD t . 1—. — '. 1 :. 4 ' beet (emeatei. to Seam a I row- 1 - - 5170 0E4 - 5 cf palantiors Mum— • i 7.44417MD TOP ii Ilt hob I C4Ctinaci 36IPage • • SURFACE USE PLAN FOR CLU STORAGE 1 Surface location: 1) Existing Roads Existing roads which will be used for access to CLU Storage 1 are shown on the attached map. Kenai, Alaska is the nearest town to the site and is also shown on the map. 2) Access Roads to be Constructed or Reconstructed No new roads will be required to access CLU Storage 1 3) Location of existing wells Well CLU Storage 1 will be drilled on the CINGSA Drill Pad. A pad drawing is enclosed that shows the proposed well surface locations 4) Location of existing and /or proposed facilities The attached plot plans show the proposed facilities that will be installed on the Drill Pad and Main Facilities pad for the gas storage operations. 5) Location of Water Supply Water supply will be taken from a permitted water well on the Well Pad. 6) Construction Materials Installation of production equipment, flowlines and headers are expected during the drilling of this well. All operations in addition to well drilling will be addressed as Simultaneous Operations (SIMOPS) and will be addressed to mitigate potential hazards with proper pre -job safety meetings, coordination protocols, and emergency response procedures. 7) Methods of handling waste disposal; a) Mud and Cuttings Annular Injection will not be used for disposal of drilling waste (mud and cuttings). Waste (formation cuttings and drilling fluid) generating during the drilling of CINGSA's 5 gas storage wells will be disposed of in the Kenai Borough Solid Waste disposal site just outside of Soldotna, Alaska. Wet solid wastes coming off of the shale shakers and centrifuges will be gathered in a small tub at the base of the shale chute. AIMM Technologies is contracted to continuously pick up the cuttings in a 70 bbl vac truck and deliver to their processing facility in Kenai. AIMM will process the cuttings by adding dry solid material until it meets the filter test standards of the landfill then store the cuttings in 100 cubic yard piles in an approved lined pit until the results from multiple samples show the waste to be suitable for disposal at the Kenai Borough landfill. Once cleared for disposal, AIMM will Toad the cuttings onto transport trucks and take them to the land fill. Transport of Cuttings will be manifested from the time they leave the Drilling Pad to entry into the landfill. Excess and used Drilling fluids will be processed on site( Figure 1) in order to recover clear brine for re -use in the drilling operations. A facility will be assembled on the Drill Pad (Figure 2) to temporarily store the drilling fluid and clear brine. It consists of 5 x 500bbI closed top frac tanks manifolded to a processing skid. The processing skid contains pumps, mixers, and a centrifuge. The tanks and the equipment are placed in 60' x 75' secondary containment consisting of 12" x12" wood sills covered with 24 mil plastic pit liner (Figure 3). The containment is designed to hold 641 bbls (fluid level of 12 ") or 551 bbls to a containment fluid level of 11". This is 28% and 10% respective of the fluid 37IPage • • levels of the total volume of one frac tank. Frac tank operating volume will be kept to 1' of freeboard or approximately 456 bbls. The drilling fluid will be treated in two stages. The first stage will be to centrifuge out as many solids as possible in a single pass. The solids will be placed in steel bins for collection by AIMM Technologies if the fluid content is too high to meet the filter test standard. If the solids are dry enough to pass the filter test standard, they will be temporarily stored on site in steel bins and tested to determine if they are suitable for disposal at the Kenai Borough landfill. Once cleared for disposal, they will be manifested and transported from the Well Pad to the Kenai Borough landfill. The steel bins will be kept within the dewatering facility containment while in storage. Select polymers will be added to the drilling fluid in the second stage in order to flocculate the small particles left that would not centrifuge out. The flocculation combines the small particles into a sufficient mass to allow the centrifuge to remove them. The result should be a relatively clear brine that can be reused on the next well. Figure #1 ; \ 1 z II R 145" ` w z LB q 1 Facaft Area I 1�1 l t , z r 1EP I t a —DMA 1TP ' 4. 1 p f Shacks cw f ' / WWDD � 1, t CLU Storage 1 / Q 't `.,� Mud Loggers / S N / / I4- . 1 \ . c fanigni Mud Eng. y ".„../ � .�t� -w t �� Bea Launeki .f 1 1 I 4 .,, A:. i 32 7 Exclusion Zest te nt 4 C r , 1 t : 1 ‘ 1 51-13 51-13 Cementing j }} } CLU ,Stor4Be 5 DeWatetmg Plant i \t, r -- - Truekskep t t }, [ ' 1 ! i 1 Yf 1 lj ( i 1 14 \ \ 9��. 428' ; ; t 1 t il 1 381 Page • . Figure #2 /20'/- �t 60' — ____,, DeWatering Plant 1 1 /I / ` 1 J ttt 5 x 400b1D1 Frac Tanks r _ _ b -_ b sl ,, \ / 40 ' _\,1 Containment DeWatering Equipment Figure #3 Containment Section i 12" x 12" Wood Sill i 3 Impermeable liner i t 1 N j z _n_a I 39IPage • • b) Garbage All household and approved industrial garbage will be hauled to the Kenai Peninsula Borough Soldotna Landfill. c) Completion Fluids Clear fluids will be disposed of at a commercial facility. d) Chemicals Unused chemicals will be returned to the vendors that provided them. Efforts will be made to minimize the use of all chemicals. e) Sewage Sewage will be picked up and disposed of through the municipal sewer system by a licensed local service company. 8) Ancillary Facilities A minimal camp will be established on the pad to house various supervisory and service company personnel. Approximately four trailer house type structures will be required for this purpose. Bottled water will be used for human consumption. Potable water will be delivered to the camp and gray and black water picked up and properly disposed of by a commercial pumper. 9) Plans for reclamation of the surface Reclamation of the pad will occur after the abandonment of CLU Storage and the other roposed wells on the pad. Approval of the plan of reclamation will be obtained from the U.S. Fish and Wildlife Service prior to any reclamation work beginning. 10) Surface ownership The surface owner of the land on the CINGSA Drill Pad is the State of Alaska. The pad is leased from the State of Alaska. 11) Operator's Representative and Certification hereby certify that I, or persons under my direct supervision, have inspected the proposed drill site and access route; that I am familiar with the conditions that currently exist; that the statements made in this plan are, to the best of my knowledge, true and correct; and that the work associated with operations proposed herein will be performed by Cook Inlet Natural Gas Storage Alaska, LLC and its contractors and subcontractors in conformity with this plan and the terms and conditions under which it is approved. This statement is subject to the provisions of 18 U.S.C. 1001 for the filing of a false statement. Date: Name and Title: 40IPage • • Page 1 of 1 Maunder, Thomas E (DOA) From: Conrad Perry [cperry@att.net] Sent: Tuesday, November 15, 2011 4:15 PM To: Maunder, Thomas E (DOA) Subject: RE: CLU S 1 Yes, I missed that, thanks! conrad From: Maunder, Thomas E (DOA) [mailto:tom.maunder @alaska.gov] Sent: Tuesday, November 15, 2011 3:55 PM To: cperry@att.net Subject: CLU S 1 Conrad, Just looking at the latest application; looks much better than the prior. One question, last time the 9 -5/8" casing test prior to drillout was changed from 2000 to 2500 psi since the casing /liner will be tested to 2500 psi later. In the S 1 application, the test is 2000 psi (Intermediate, step 8). Should the test pressure be 2500 psi? Regard, Tom Maunder, PE AOGCC 11/16/2011 OVERSIZED DOCUMENT INSERT This file contains one or more oversized documents. These materials may be found in the original hard file or check the parent folder to view it in digital format. • • TRANSMITTAL LETTER CHECKLIST WELL NAME 4 /4/ PTD# //7i9 Development ✓ Service Exploratory Stratigraphic Test Non Conventional Well FIELD: C A///, )>/ /04 POOL: �G /N ? 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 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 KENAI C.L.U., STERL C GAS STOR - 449800 Well Name: CANNERY LOOP UNIT S-1 Program SER Well bore seg ❑ PTD#: 2111490 Company COOK - INLET NATURAL GAS STORAGE ALASKA. LLC - Initial Class/Type SER / PEND GeoArea 820 -_ Unit 10320 On /Off Shore On Annular Disposal ❑ Administration 17 Nonconven. gas conforms to AS31.05.0300„1.A),(j.2.A -D) NA 1 Permit fee attached NA 2 Lease number appropriate Yes 3 Unique well name and number Yes 4 Well located in a defined pool No Exploratory/Stratigraphic test, 5 Well located proper distance from drilling unit boundary Yes 6 Well located proper distance from other wells Yes 7 Sufficient acreage available in drilling unit Yes 8 If deviated, is wellbore plat included NA Straight hole. 9 Operator only affected party Yes 10 Operator has appropriate bond in force Yes Blanket Bond. Appr Date 11 Permit can be issued without conservation order Yes ACS 11/15/2011 12 Permit can be issued without administrative approval Yes 13 Can permit be approved before 15 -day wait Yes 14 Well located within area and strata authorized by Injection Order # (put IO# in comments) (For NA 15 All wells within 1/4 mile area of review identified (For service well only) - - NA 16 Pre - produced injector: duration of pre production less than 3 months (For service well only) NA 18 Conductor string provided Yes 20" @ 120'. Engineering 19 Surface casing protects all known USDWs Yes 20 CMT vol adequate to circulate on conductor & surf csg _ Yes 21 CMT vol adequate to tie -in long string to surf csg Yes Intermediate will be cemented to surface. 22 CMT will cover all known productive horizons Yes 23 Casing designs adequate for C, T, B & permafrost Yes 24 Adequate_ tankage or reserve pit Yes Nabors Rig 105E 25 If a re- drill, has a 10 -403 for abandonment been approved NA , 26 Adequate wellbore separation proposed Yes 27 If diverter required, does it meet regulations Yes Appr Date 28 Drilling fluid_ program schematic & equip list adequate Yes Maximum MW planned 9.8 ppg. TEM 11/15/2011 29 BOPEs, do they meet regulation Yes 30 BOPE press rating appropriate; test to (put psig in comments) Yes Calculated MASP 1766 psi. 2500 psi test pressure planned. 31 Choke manifold complies w /API RP -53 (May 84) Yes 32 Work will occur without operation shutdown Yes Wells will be batch drilled and completed with coil. 33 Is presence of H2S gas probable No H2S has not been encountered in CI gas drilling. 34 Mechanical condition of wells within AOR verified (For service well only) NA 35 Permit can be issued w/o hydrogen sulfide measures Yes There has been no report of H2S from any of the surrounding fields. Geology 36 Data presented on potential overpressure zones NA Appr Date 37 Seismic analysis of shallow gas zones NA ACS 11/14/2011 38 Seabed condition survey (if off - shore) NA 39 Contact name /phone for weekly progress reports [exploratory only ] NA Geologic Engineering ��,WW Commissioner: Date: Commissioner: DatelT,�`�oner Date Pr / / -/ -1/ Well History File APPENDIX Infoiniation of detailed nature that is not particularly germane to the Well Permitting Process but is part of the history file. To improve the readability of the Well History file and to simplify finding information, information of this nature is accumulated at the end of the file under APPENDIX. No special effort has been made to chronologically organize this category of information. CLU Storage 1 Kenai Borough, Alaska November 26 to December 10, 2011 Provided by: Approved by: Ari Berland Compiled by: Larry Resch Justin Rosenblume Dan Hillegeist Distribution: December 10, 2011 December 10, 2011 CLU STORAGE 1 2 TABLE OF CONTENTS 1 MUDLOGGING EQUIPMENT & CREW ................................................................................................ 3 1.1 Equipment Summary ...................................................................................................................... 3 1.2 Crew................................................................................................................................................ 3 2 GENERAL WELL DETAILS ................................................................................................................... 4 2.1 Well Objectives ............................................................................................................................... 4 2.2 Well Resume .................................................................................................................................. 5 2.3 Hole Data ........................................................................................................................................ 5 3 GEOLOGICAL DATA ............................................................................................................................. 6 3.1 Lithology Review ............................................................................................................................. 6 3.2 Sampling Program ........................................................................................................................ 17 4 DRILLING DATA .................................................................................................................................. 18 4.1 Daily Activity Summary ................................................................................................................. 18 4.2 Surveys ......................................................................................................................................... 22 4.3 Bit Record ..................................................................................................................................... 25 4.4 Mud Record .................................................................................................................................. 26 4.5 Drilling Progress Chart .................................................................................................................. 27 5 DAILY DRILLING REPORTS ............................................................................................................... 28 Enclosures: 2”/ 100’ Formation Log (MD and TVD) 2”/ 100’ LWD Combo Log (MD and TVD) 2”/ 100’ Drilling Dynamics Log (MD) Final Well Data on CD/ROM CLU STORAGE 1 3 1 MUDLOGGING EQUIPMENT & CREW 1.1 Equipment Summary Parameter Equipment Type /Position Total Downtime Comments Computer – Driller’s Monitor Azonics 0 Computer -- Pit Monitor Azonics 0 Computer -- Company Man RigWatch Remote (HP Compaq) 0 Computer – Directional Driller RigWatch Remote (HP Compaq) 0 Computer – Tool Pusher RigWatch Remote (HP Compaq) 0 Computer – Mud Engineer RigWatch Remote (HP Compaq) 0 Computers – Mudloggers (4) RigWatch Master, DML, RigWatch Remote, WITS Feed (all HP Compaq) 0 Ditch gas QGM gas trap; Flame ionization total gas & chromatography. 0 Hook Load/ Weight on bit Fed from Academy PLC 0 Mud Flow In Derived from Strokes/Minute and Pump Output 0 Mud Flow Out Vega Sonic Flow-line Sensor 0 Pit Volumes, Pit Gain/Loss Vega Sonic Volume Sensors (8) 0 Pump Pressure Fed from Academy PLC 0 Pump Stroke Counters (2) Hard-wired Proximity Sensors 0 Rate of Penetration Crown Sheave Encoder 0 RPM Fed from Academy PLC 0 Torque Fed from Academy PLC 0 WITS—To/ From Baker Hughes Inteq RigWatch Remote (HP Compaq) 0 1.2 Crew Mud Logging Unit Type: Arctic Mud Logging Unit Number: ML057 Mud Loggers Years Days Sample Catchers Years Days Technician Days Larry Resch 9 21 Justin Rosenblume 1 18 Allen Williams 1 John Lundy 10 3 Dan Hillegeist 1 18 Tollef Winslow 4 9 Ralph Winkelman 21 3 *1 Years experience as Mudlogger *2 Days at wellsite between rig up and rig down of logging unit. CLU STORAGE 1 4 2 GENERAL WELL DETAILS 2.1 Well Objectives The objective of CLU Storage 1 is to drill and log a single zone gas storage well in the Cannery Loop/ Sterling C Gas Pool with a minimum of hole problems or other concerns. The Sterling C Gas Pool is vertically defined as the underground formations comprising the C1 and C2 sands, bounded by a coal at the base of the B5 sand formation (top) and the top of the Upper Beluga formation (base). The Sterling C Pool is vertically defined by the “Pool Type Log” Cannery Loop Unit (CLU)-8 well as the interval between the depths of 4871 TVDSS and 5101 TVDSS. The gross reservoir interval thickness averages approximately 200 feet across the pool area, and average net sand thickness is approximately 95 feet. The structure is comprised of fluvial channel sandstones with interbedded silty sands and shales folded in a structural 4-way dip closure. Ultimately, CINGSA expects to utilize this depleted pool for gas injection and storage. CLU STORAGE 1 5 2.2 Well Resume Operator: CINGSA Well Name: CLU Storage 1 Field: Cannery Loop/ Sterling C County: Kenai Borough State: Alaska Company Representatives: Steve Ratcliff, John Nicholson, Mike Grubb Location: Surface Coordinates 520’ FNL 1764’ FEL Sec. 9 T5N R11W Pad Elevation 33.0’ AMSL Rotary Table Elevation 53.5’ AMSL Classification: Gas Storage API #: 50-133206000000 Permit #: 211149 Rig Name /Type: NAD 105e/ Arctic/ Triple Spud Date November 26, 2011 Total Depth Date: December 10, 2011 Total Depth 9661’MD/ 5164’ TVD Primary Targets Sterling C Sands Primary Target Depths Total Depth Formation: Sterling Completion Status: Run 7” Liner LWD-MWD Services. Baker Hughes Inteq Directional Drilling Baker Hughes Inteq Wireline Logging Services Baker Atlas Drilling Fluids Service MISwaco CANRIG Logging Geologists: Larry Resch, Ralph Winkelman, Tollef Winslow, John Lundy CANRIG Logger Trainees: Justin Rosenblume, Dan Hillegeist 2.3 Hole Data Hole Section Maximum Depth TD Formation Mud Weight (ppg) Dev. (oinc) Casing Diam. Shoe Depth LOT (ppg) MD (ft) SSTVD (ft) MD (ft) SSTVD (ft) Conductor 115’ 61.5’ Recent -- 0.00 20” 115’ 61.5’ NA 16” 2967’ 2595.5’ Sterling 8.9 55.68 13-3/8” 2954’ 2588.3’ 12-1/4” 7573’ 4880.5’ Sterling 9.3 79.64 9-5/8” 7563’ 4878.5 14.9 8-1/2” 9661’ 5110.5’ Sterling 9.3 85.85 7” 9659’ 5110.5 Standard Completion CLU STORAGE 1 6 3 GEOLOGICAL DATA 3.1 Lithology Review Sand (2970’ - 3060’) = dark gray to medium dark gray; lower medium to upper fine fining to lower fine; spherical to sub-discoidal; sub-rounded to sub-angular; moderately well to well sorted; unconsolidated sand; grain supported; texturally immature; compositionally sub-mature; translucent to transparent quartz with impacting and pitting; light gray chert, carbonaceous shale with moderate out-gassing, sub-lignitic coal, moderate green lithics and moderate reddish orange volcanics; porosity and permeability visually fair; no oil indicators. Sand (3060’ - 3150’) = medium dark gray to medium gray; upper fine to lower fine grained with occasional lower medium and upper very fine grains; sub-rounded to sub angular; spherical to sub-discoidal; moderately well to well sorted; unconsolidated sand; texturally immature; compositionally immature; translucent and transparent quartz with impacting and pitting; light gray chert, reddish black carbonaceous material, moderate reddish orange volcanics, and moderate green lithics; porosity and permeability visually fair; no oil. Siltstone (3120’ - 3180’) = medium dark gray to medium gray; friable to easily friable; irregular fracture; sub- nodular cutting habit; dull to earthy luster; silty to gritty texture; massive or laminae structure; siltstone varies in laminae carbonaceous material from 0% to 10% with some fragments; no oil. Sand (3150’ - 3270’) = medium light gray to medium gray to medium dark gray; upper fine to lower fine with some lower medium and upper very fine; spherical to sub-discoidal; sub-angular to sub-rounded; moderately well to well sorted; unconsolidated; texturally immature; compositionally immature; translucent and transparent quartz with pitting and impacting; siltstone, light gray, friable, earthy fracture, sub-nodular cuttings habit, earthy luster, silty texture, massive or carbonaceous laminations; chert, medium reddish orange volcanics, green lithics, and carbonaceous material; porosity and permeability visually good; no oil. Sand (3270’ - 3360’) = medium dark gray to medium gray; upper fine to lower fine occasional lower medium and upper very fine; sub-rounded to sub-angular; spherical to sub-discoidal; moderate to moderately well sorted; unconsolidated sand; texturally immature; immature compositionally; translucent and transparent quartz with pitting and impacting; light gray or light brown siltstone, friable, earthy fracture, elongated cuttings habit, earthy to dull luster, silty to granular texture, massive or laminae structure, carbonaceous material w/in light brown siltstone; reddish orange volcanics, chert and black carbonaceous material; porosity and permeability visually fair; no oil indicators. Siltstone (3360’ - 3450’) = medium gray to medium dark gray; friable to firm friable; moderately indurated; earthy fracture; elongated to nodular cuttings habit; earth to dull luster; silty to gritty texture; massive to laminar structure; carbonaceous material, randomly scattered throughout and laminar; small fine grained strata present at times; quartz, translucent and transparent, upper fine to lower fine grained, spherical, sub-rounded, moderately well sorted, unconsolidated; reddish orange volcanics; no oil. Sand (3450’ - 3540’) = medium dark gray to medium gray; upper fine to lower fine; spherical to sub-discoidal; sub- angular to sub-rounded; moderately well to well sorted; unconsolidated sand; texturally immature; immature compositionally; translucent and transparent quartz with frosting and impacting; siltstone, medium gray, friable, moderately indurated, earthy fracture, sub-nodular cuttings habit, earthy luster, silty texture, massive structure; carbonaceous material, moderate reddish brown volcanics, and light green lithics; porosity and permeability visually fair; no oil. CLU STORAGE 1 7 Sand (3540’ - 3630’) = medium dark gray to medium gray; lower fine to upper fine, some upper very fine; spherical to sub-discoidal; sub-angular to sub-rounded; moderately well sorted to well sorted; unconsolidated sand; texturally immature; compositionally immature; translucent and transparent quartz with frosting and pitting; reddish orange volcanics, light green lithics, black and reddish brown carbonaceous material, muscovite and pale yellowish orange volcanics; porosity and permeability visually fair; no oil indicators. Sand (3630’ - 3690’) = medium gray to medium light gray; lower medium with range from upper medium to upper fine; spherical to sub-discoidal; sub-rounded to sub-angular; moderately well to well sorted; unconsolidated sand; texturally immature; compositionally immature; translucent and transparent quartz; medium gray chert, pale, yellowish orange volcanics, moderate reddish orange volcanics, chlorite, and light green lithics; porosity and permeability visually fair; no oil. Sand (3690’ - 3755’) = medium light gray to medium gray; lower medium with upper fine to upper medium grains; spherical to sub-discoidal; sub-rounded to sub-angular; moderately well sorted well sorted; unconsolidated sand; texturally immature; compositionally immature; translucent and transparent quartz; medium gray chert, pale yellow orange volcanics, muscovite, chlorite, reddish orange volcanics and light green lithics; porosity and permeability visually fair; no oil. Coal (3755’ - 3765’) = black to grayish black; planar and irregular fracture; massive cuttings habit; earthy luster; mottled texture; laminae structure; sub-lignitic, brownish gray coal; out-gassing observed; fine grains interbedded occasionally w/in coal. Sand (3765’ - 3870’) = medium gray to medium light gray, slight salt and pepper appearance; lower medium to upper medium with occasional fines; spherical to sub-discoidal; sub-rounded to sub-angular; moderately to well sorted; texturally immature; immature compositionally; translucent and transparent quartz with pitting; light gray chert, pale yellow orange volcanics and smokey quartz; porosity and permeability visually fair; no oil. Tuffaceous Siltstone/ Claystone (3840’ - 3930’) = medium light gray to medium gray; cohesive; easily friable to friable; moderately indurated; earthy fracture; massive cuttings habit; earthy luster; silty to clayey texture; massive and laminar structure; carbonaceous laminations and carbonaceous material interbedded within silt/clay; sub- lignitic coal, brownish gray with reddish streaks, out-gassing observed, interbedded with siltstone/claystone; no oil. Tuffaceous Claystone/ Siltstone (3930’ - 3990’) = light gray to medium light gray; soft to slightly firm in part; moderate cohesion, poor adhesion; pulverulent, often slightly crumbly; earthy to sub-planer; generally dull to very lightly sparkly in part with increased very fine sand component; generally massive with no definable structure, often appears carbonaceous with varying amounts of laminated sub-lithic coal, detritus, streaks and wisps; with thinly interbedded fine grain well sorted sandstone; trace light gray to very light gray tuff. Tuffaceous Claystone/ Siltstone (3990’ - 4080’) = medium light gray to light gray, occasional brownish hues; soft to very soft; fair to moderate cohesion, poor adhesion; pulverulent to crumbly in part; dull, earthy; non- calcareous; occasionally sandy in part; often carbonaceous with locally abundant fine fragmented detritus, micro-fine laminae and streaks; grades towards a carbonaceous shale and earthy sub-lithic/ sub-lignitic coal; no visible out-gassing. Sand (4080’ - 4140’) = unconsolidated; overall sample appears light gray; fine grain, occasionally upper very fine; subangular to subrounded; subdiscoidal; moderate to well sorted; occasionally consolidated; friable; non to slightly calcareous; grain supported with white to very light gray clay fill; generally tight, note occasional fair visible porosity; 60% very light gray, milky white, translucent to transparent quartz, feldspars; abundant pale yellowish green, medium gray, reddish orange lithics; note trace fine to lower medium grain well rounded clasts and pebble fragments. CLU STORAGE 1 8 Sand (4140’ - 4230’) = unconsolidated; generally medium light gray to medium gray appearance; fine to lower medium grain, occasionally upper very fine grain; sub-rounded to sub-angular; sub-discoidal; fair to moderate sorting; note increase in lower medium and trace upper medium well rounded sub-spherical clasts and pebble fragments; no evidence of cementation or matrix component; 60% milky white and very light gray, opaque to translucent, often glass-like transparent quartz; abundant reddish orange, pale yellowish green, medium gray clasts; trace very fine transparent glass shards. Sand (4230’ - 4320’) = unconsolidated; overall sample appears medium light gray to medium gray with slight brownish hues; fine grain, upper very fine common; sub-angular to sub-rounded; sub-discoidal to sub- prismoidal; fair sorting; occasionally poorly consolidated as a matrix supported very arenaceous siltstone/ claystone; non-calcareous; grades towards a sandy siltstone in part; siltstone and claystone common, often containing locally abundant carbonaceous detritus, streaks and planar sub-lithic coal; note trace earthy carbonaceous shale. Tuffaceous Siltstone/ Claystone (4320’ - 4410’) = medium light gray, light to medium light gray, generally with slight to marked brownish hues; soft to very soft; pulverulent to crumbly; moderate cohesion, poor adhesion; earthy; generally no definable fracture or cuttings habit; massive to sub-platy with increased thin laminae of carbonaceous material/ sub-lithic coal; non-calcareous; air dried processed samples readily rehydrate but do not swell or crumble; trace carbonaceous shale/ poorly developed coal; no visible out- gassing. Tuffaceous Siltstone/ Claystone (4410’ - 4500’) = light gray to medium light gray often with light brownish hues, light olive gray to pale yellowish brown; soft to slightly firm; pulverulent, crumbly in part; poor to fair cohesion, non-adhesive; generally no definable cutting habit or fracture, occasionally sub-platy; earthy, dull; clays often massive with ash/ tuff, also grades towards an arenaceous siltstone; sandy in part with locally abundant lower to upper very fine well rounded quartz grains; a matrix supported sandstone in part; note trace grain supported sandstone, generally clay fill matrix; rare trace visible porosity; continued very thinly interbedded carbonaceous laminae. Sand (4500’ - 4560’) = unconsolidated; samples generally appear medium light gray to light gray; fine grain, very fine grain common; sub-angular to sub-rounded; moderate sphericity; moderate sorting; occasionally consolidated/ incorporated in clays; cuttings appear as distinct claystone, siltstone, sandstone all with varying amounts of carbonaceous dutrital fragments and very thin laminae; noncalcareous. Carbonaceous Shale (4560’ - 4590’) = grayish black to dark gray, brownish black to dusky yellowish brown; firm to moderately hard, often crumbly; hackly to earthy with varying amounts of sediment and inorganic material; sub-vitreous to dull; no out-gassing. Tuffaceous Claystone/ Siltstone (4590’ - 4710’) = generally pale yellowish brown to light brownish gray, minor amounts of light gray to light bluish gray; very soft to slightly firm; poor cohesion, no adhesive properties; pulverulent, crumbly in part; no definable fracture or cuttings habit; generally dull, earthy; sub-sucrosic in part when silty to sandy with abundant very fine well rounded quartz grains; sub-waxy when more tuffaceous; varies from smooth, non-gritty to gritty and abrasive; non-calcareous; occasionally dense with abundant organic content and carbonaceous dutrital clasts, spiky fragments and micro thin coaly laminae. Sand (4710’ - 4770’) = generally unconsolidated; overall sample medium light gray upper fine to lower medium grain; sub-rounded, sub-angular in part; sub-prismoidal, sub-discoidal in part; moderate to well sorted; note occasional well rounded sub-prismoidal clasts and pebble fragments; occasional fair to moderate cemented sandstone; upper fine grain; well sorted; non-calcareous; grain supported with very light gray to whitish clay fill; tight to trace fair visible porosity. CLU STORAGE 1 9 Sand (4770’ - 4890’) = unconsolidated; overall sample is medium gray to medium light gray with slight salt and pepper appearance; lower medium grain; sub-angular to angular, slightly sub-rounded in part; sub-prismoidal; well sorted; no evidence of cementation or matrix component; occasionally weakly to moderately cemented; grain supported; very light gray clay fill; non-calcareous tight; 60% opaque very light gray, translucent, transparent quartz; note abundant glass-like transparent quartz as well rounded clasts and as fine, thin glass shards; remaining clasts vary medium dark gray to dark gray, reddish orange, pinkish orange, pale yellow- green to moderate blue-green lithic fragments; note occasional well rounded sub-prismoidal pebble fragments with high impact fractured surfaces; trace woody to earthy, poorly developed coal. Sand/ Conglomeratic Sand (4900’ - 4990’) = unconsolidated; overall medium dark gray to medium gray with slight salt and pepper appearance; medium grain; sub-rounded to sub-angular; sub-discoidal; also sub- rounded to well rounded with good sphericity; 5-10% well rounded pebble fragments with high impact fractured surfaces; no evidence of cementation or consolidation; note occasional fine grain sandstone cuttings; 50% very light gray, opaque to transparent milky white and glass-like transparent quartz; abundant transparent glass shards; remaining lithics include medium dark gray, reddish orange to pinkish orange, pale yellowish green clasts; note trace biotite. Sand/ Conglomeritic Sand (4990’ - 5070’) = medium gray to medium light gray; upper fine to lower medium grains with upper coarse to lower very coarse conglomerates; sub-prismoidal to sub-discoidal; sub-rounded to angular; moderately sorted; unconsolidated sand; texturally immature; compositionally immature; translucent and transparent quartz with impacting; sandstone fragments, upper medium, spherical, angular, well sorted, hard, matrix supported; siltstone, pale yellow orange volcanics, rounded conglomerates; carbonaceous material, biotite; porosity and permeability visually fair; no oil. Sand/ Sandstone (5070’ - 5180’) = light gray to medium light gray; lower fine to lower medium; spherical to sub-discoidal; sub-angular to sub-rounded; moderately to moderately well sorted; unconsolidated sand; texturally immature; compositionally immature; translucent to transparent quartz with frosting; sandstone, light gray, coarse, spherical, angular, friable, texturally immature, compositionally immature, matrix supported, quartz, rounded lithics included; laminated carbonaceous material interbedded with silt/ fine grained sand, pale yellowish orange volcanics; porosity and permeability visually fair; no oil. Coal (5180’ - 5230’) = black to grayish black; firm friable to moderately hard; planar fracture; waxy to greasy luster; matte texture; laminae to thin structure; sub-lignitic coal massive with silt and fine grained layers also present; siltstone with carbonaceous material present; two distinct beds within interval. Tuffaceous Siltstone (5230’ - 5280’) = medium gray to medium light gray; friable to firm friable; massive cutting habit; earthy fracture; earthy fracture; silty to gritty texture; laminae to thin structure; thin/ laminae beds of carbonaceous material; clean siltstone at times, other times, silt is mixed with carbonaceous material. Sand (5280’ - 5340’) = unconsolidated; overall sample light gray to medium light gray; fine to upper very fine grain; sub-rounded; discoidal to sub-discoidal; well rounded in part with very good sphericity; well sorted; no evidence of cementation or matrix component; 60% very light gray to milky white; opaque to translucent quartz; note abundant well rounded glass-like transparent volcanic glass clasts and thin shards; remaining components of medium dark gray and medium light gray lithics, pinkish orange to reddish orange, pale yellowish green; note trace biotite, chlorite. Carbonaceous Shale/ Coal (5340’ - 5460’) = dark gray to grayish black, olive black to dusky yellowish brown; firm to moderately hard; dense to crumbly in part; irregular to hackly, sub-planar fracture; irregular. slightly elongated cuttings habit; sub-vitreous to sub-waxy, often dull to earthy luster; visible micro-thin sediment layers/ inorganic laminae in more earthy poorly developed coal; note occasional grain supported arenaceous siltstone with abundant extremely fine carbonaceous dutrital fragments; trace very argillaceous/ tuffaceous sandstone, claystone with micro fine wispy organic streaks, biotite, chlorite; rare well rounded, medium sized clasts with very good sphericity. CLU STORAGE 1 10 Sand (5460’ - 5520’) = generally unconsolidated with an overall medium light gray sample appearance; dominantly upper fine grain; sub-rounded; sub-discoidal; good sorting; also lower and upper medium grain; sub-angular; sub-prismoidal; no evidence of consolidation or cementation; 60% very light gray, milky white, opaque quartz; abundant sub-rounded and rounded transparent volcanic glass clasts and thin, sub-angular glass shards; remaining lithics of medium dark gray to grayish black, reddish orange, pinkish orange, pale yellow green. Carbonaceous Shale/ Coal (5520’ - 5550’) = grayish black to dark gray, olive black; firm to moderately hard; dense, crumbly in part; irregular to hackly, planar to sub-splintery, earthy fracture; irregular to tabular cuttings habit; sub-vitreous to dull, often earthy luster; poorly developed coal with abundant sediment/ inorganic content; silty, gritty in part; trace out-gassing. Sand/ Sandstone (5550’ - 5670’) = interval presents as dominantly unconsolidated fine grain sand, trace lower medium grain; sub-angular to sub-rounded; sub-discoidal; also consolidated; friable to moderately hard; fine grain; sub-angular, sub-rounded in part; moderate to good sorting; generally grain supported; what appears to once been good porosity has been lost to very light gray to yellowish gray to very pale orange calcareous cement/ clay fill; slightly silty in part; interval continues to contain interbedded carbonaceous shale/ coal/ carbonaceous claystone. Sandstone/ Sand (5670’ - 5790’) = 70% consolidated, 30% loose/ unconsolidated sand; pale yellowish brown; upper very fine to less commonly lower fine grain; sub-rounded, rounded in part, occasionally sub- angular; sub-discoidal to discoidal; well sorted; friable to firm; non to very slightly calcareous; generally grain supported, matrix supported in part with yellowish brown to yellowish gray argillaceous material; 80+% very light gray, opaque to translucent milky white quartz, some sandstone cuttings contain very fine carbonaceous dutrital clasts and spiky fragments, often appearing amber stained (no fluorescence or solvent reaction); note trace pale yellowish brown sub-waxy to waxy tuff containing elongated, platy and spiky carbonaceous fragments; carbonaceous claystone and siltstone continues. Coal/ Carbonaceous Shale (5790’ - 5850’) = brownish black to grayish black, dusky yellowish brown; firm to moderately hard; dense, crunchy in part; irregular to hackly fracture, planar to sub-fissile in part; irregular to slightly tabular cuttings habit; dull, matte, earthy, rare sub-vitreous luster; generally massive, often earthy, laminar; silty in part; grades from a clean lignitic coal to carbonaceous shale to highly carbonaceous earthy sediment; trace out-gassing bubbles; note banded very fine grain sandstone and sandy siltstone containing parallel micro-thin organic layers and oriented carbonaceous detritus. Sandstone/ Sand (5850’ - 5940’) = 70% consolidated, 30% loose/ unconsolidated sand; pale yellowish brown; very fine grain; sub-rounded to round with good sphericity, sub-angular in part with moderate sphericity; moderate to well sorted; friable; grain supported with very light gray to yellowish gray clay fill; slightly calcareous to calcareous; overwhelmingly quartz grain sand with abundant carbonaceous dutrital clasts and spiky fragments; silty to clayey in part; earthy carbonaceous shale continues; trace sub-waxy grayish brown tuff/ tuffaceous clay. Sand (5940’ - 6090’) = unconsolidated; samples overall medium light gray to medium gray with slight salt and pepper appearance; upper fine to lower medium grain, lower fine grain common; sub-rounded; sub-discoidal; varies from moderate to well sorted through interval; no evidence of consolidation or cementation; 75%+ very light gray, milky white, opaque to translucent quartz; glass-like transparent volcanic clasts and shards common; abundant reddish orange and pinkish clasts, medium dark gray to medium gray, lesser amounts pale yellowish green, yellowish brown to amber; trace biotite, chlorite; note occasional well rounded pebble fragments with high impact fractured surfaces. CLU STORAGE 1 11 Coal/ Carbonaceous Shale/ Carbonaceous Claystone (6090’ - 6150’) = black to grayish black to dark gray, olive black. moderately hard; dense; blocky to hackly with occasional birdseye fracture; massive in part; dull/ matte to sub-vitreous luster; interval grades down section to a sub-platy carbonaceous shale, further grading to an earthy carbon rich claystone; claystone displays abundant carbonaceous detritus as clasts, irregular tabular and platy fragments, woody/ sub-lithic organics; lowest part of interval is light brownish gray to pale yellowish brown argillaceous siltstone/ silty claystone with abundant carbonaceous material; trace very light gray to light gray ash/ tuff. Sand (6150’ - 6240’) = unconsolidated; generally a medium gray sample color, slightly salt and pepper in part; fine to very fine grain; sub-rounded, sub-angular in part; generally good sphericity; moderate to well sorted; no evidence of consolidation or cementation; occasional sandstone cuttings are grain supported but extremely fine grained, grading towards a quartz rich sandy siltstone; trace carbonaceous siltstone and claystone. Sand (6240’ - 6330’) = medium gray to light medium gray with slight light olive gray sub-hue, overall slight salt and pepper appearance; upper fine with some lower medium and lower fines; sub-prismoidal to sub-discoidal; angular to sub-angular; moderately well sorted to well sorted; texturally immature; compositionally immature; translucent and transparent quartz with pitting and frosting; mafic lithics, light green lithics, light gray chert, reddish orange volcanics, sandstone fragments, and tuffaceous siltstone; porosity and permeability visually fair; no oil. Sand (6330’ - 6390’) = medium gray to medium dark gray to dark gray; upper fine with some coarse, fine and medium grains; spherical to sub-discoidal; angular to sub-angular; moderately well to well sorted; unconsolidated sand; texturally immature; immature compositionally; translucent and transparent quartz with frosting; mafic lithics, yellowish orange lithics, pale yellow orange volcanics, smokey quartz, light green lithics and siltstone; porosity and permeability visually good; no oil. Sand (6390’ - 6480’) = medium dark gray to medium gray with overall salt and pepper appearance; upper fine with occasional lower fine, medium and coarse grains; spherical to sub-discoidal; angular to sub-angular; moderately well to well sorted; unconsolidated sand; texturally immature, compositionally immature; translucent and transparent quartz with frosting at times; mafic lithics, siltstone fragments with carbonaceous laminations, pale yellowish orange lithics, reddish orange lithics, light green lithics and light gray chert; porosity and permeability visually fair; no oil. Sand (6480’ - 6570’) = medium dark gray to medium gray to medium light gray with overall salt and pepper appearance; upper fine grained with lower medium and coarse grains; spherical to sub-discoidal; angular to sub-rounded; moderately well to well sorted; sand is unconsolidated; texturally immature; compositionally immature; translucent and transparent quartz with pitting; light gray chert, mafic lithics, light green lithics, reddish orange volcanics, pale yellowish orange volcanics and siltstone fragments; porosity and permeability visually fair; no oil. Sand (6570’ - 6630’) = medium dark gray to medium light gray with salt and pepper appearance; upper fine with some medium, coarse and lower fine grading to lower fine with upper fine, medium and coarse grains; sub-prismoidal to sub-discoidal; sub- angular to sub-rounded; moderately well to well sorted; unconsolidated sand; texturally immature; compositionally immature; transparent and translucent quartz grains with pitting; light gray chert, light green lithics, reddish orange volcanics, and mafic lithics; porosity and permeability visually good; no oil. Sand (6630’ - 6720’) = medium light gray to medium gray to medium dark gray; upper fine to lower fine with coarse and medium grains; sub-prismoidal to sub-discoidal; sub-angular to sub-rounded; moderately well to moderately sorted; unconsolidated sand; texturally immature; compositionally immature; transparent and translucent quartz grains; mafic lithics, light green lithics, pale yellowish orange volcanics, reddish orange volcanics, and trace chlorite; porosity and permeability visually good; no oil. CLU STORAGE 1 12 Sand (6720’ - 6780’) = medium gray to medium dark gray; upper fine grains with medium and coarse grains; spherical to sub-discoidal; sub-angular to sub-rounded; moderate to moderately well sorted; unconsolidated sand; translucent and transparent quartz grain; mafic lithics, pale yellowish orange volcanics, reddish orange volcanics, tuffaceous siltstone, matrix supported sandstone, light green lithics and trace chlorite; porosity and permeability visually good; no oil. Sand (6780’ - 6920’) = medium to medium dark gray; moderately well sorted; fine upper to medium lower and medium upper grain predominate; scattered coals and small angular pebble fragments; sub-angular to angular and sub-discoidal trace subrounded in the larger grains; principally medium to dark gray lithic/ mineral grains; 40 to 50% translucent white to slightly smokey and clear quartz; common rust red to orange volcanics/jasper fragments; trace light blue-gray, green and brown mineral grains and dark gray to black mafics; samples collected as loose disaggregated or unconsolidated sand with trace to common small irregular lumps of tuffaceous claystone/ ash containing small amounts of float sand reworked into the clay by circulation; trace silty fine grain sandstone fragments; trace white ash with abundant volcanic shard inclusions; very slightly to slightly calcareous. Sand (6920’ - 7050’) = medium to medium dark gray; moderately to poorly sorted; medium upper to fine lower, medium upper predominate with locally dominant medium upper to coarse lower; scattered coarse upper, granule and small angular pebble fragments; sub-angular to angular and sub-discoidal some larger grains subrounded; about 50% medium to dark gray lithic/ mineral grains; 40 to 50% translucent white to slightly smokey and clear colorless quartz; abundant rust red to orange volcanics/jasper fragments; trace light blue- gray, green and brown mineral grains and dark gray to black mafics; samples collected as loose disaggregated or unconsolidated sand with trace to common small irregular lumps of tuffaceous claystone/ ash containing small amounts of float sand reworked into the clay by circulation; trace silty fine grain sandstone fragments; trace yellow-white ash with abundant volcanic shard inclusions; very slightly to slightly calcareous. Sand (7050’ - 7200’) = unconsolidated; overall sample medium dark gray to dark gray; conglomeratic in part; medium to lower coarse grain, upper fine grain common; sub-rounded, sub-discoidal and sub-prismoidal; also well rounded, sub-discoidal; moderate to well sorted in part; no evidence of consolidation or cementation; note 15% well rounded coarse pebbles and pebble fragments; 50% very light gray, milky white, opaque to slightly trans lucent, abundant glass-like transparent quartz grains; light gray, medium gray and medium dark gray clasts common; remaining pale yellowish brown to very pale orange to amber, reddish orange to pinkish, pale yellowish green lithic fragments; note <10% lower medium sized carbonaceous detritus consistent throughout interval; rare grain supported sandstone; tight, with abundant yellowish gray to pale yellowish orange calcareous clay fill. Sand (7200’ - 7290’) = unconsolidated; samples appear medium dark gray to medium gray; slightly conglomeratic in part; fine grain, lower medium grain common; sub-rounded; sub-discoidal; occasionally well rounded; well sorted; locally abundant well rounded, spherical pebbles and pebble fragments; predominantly loose sand with occasional grain supported sandstone; firm to moderately hard; well cemented with very pale orange to pale yellowish orange calcareous cement; 70 % very light gray to milky white opaque quartz with abundant well rounded glass-like transparent glass clasts and glass shards; reddish orange to pinkish and various shades of gray lithics common; abundant biotite and chlorite. CLU STORAGE 1 13 Sand (7290’ - 7380’) = unconsolidated; overall sample appearance is medium gray with slight brownish hues; fine grain, sub-rounded; well sorted; sub-discoidal; occasional medium and trace lower coarse sub-rounded to well rounded clasts; sub-discoidal to sub-prismoidal in part; no evidence of consolidation or cementation; dominantly very light gray, milky white opaque quartz, occasionally translucent, note decrease of trans- parent glass-like clasts and shards; note abundant multi-mineral clasts, biotite, reddish orange to pinkish, pale yellowish brown to amber, pale yellowish green lithics, chlorite; lower part of interval contains well cemented sandstone; grain supported in part; tight, with abundant grayish orange calcareous argillaceous fill; trace very sandy siltstone with abundant carbonaceous clasts, streaks, flaky fragments. Tuffaceous Claystone/ Siltstone (7380’ - 7460’) = pale yellowish brown to dark yellowish brown, also light gray to light bluish gray; firm with good cohesion, non-adhesive properties; tough to crumbly in part, pulverulent when more ashy/ tuffaceous; varies from earthy to irregular fracture; no definable cuttings habit; generally dull, earthy, often sub-waxy when more massive; varies from gritty and slightly abrasive to smooth/ non-gritty; non-calcareous; note occasional thin carbonaceous laminae, carbonaceous detritus; thinly interbedded in a predominantly sand unit. Coal (7460’ - 7573’) - black to grayish black; dense, hard; blocky with birdseye fracture common, also planer to platy in part; massive, equant and tabular cuttings habit; vitreous to sub-vitreous rarely dull/ earthy; generally thick, massive structure, low fissility; note interbedded sandstone and siltstone with abundant very fine carbonaceous dutrital clasts and fragments; earthy in part. Sand (7573’ - 7680’) = unconsolidated; overall samples appear light gray with locally abundant coal; quartz sand is lower medium grain to upper fine grain; sub-rounded to rounded in part; good sphericity; moderate to well sorted; occasionally consolidated; poorly cemented with calcite; silty to very silty in part; often grades to a sandy siltstone; no visible porosity; trace tuffaceous claystone. Sand/ Sandstone (7680’ - 7760’) = predominantly loose; medium light gray to light gray; very fine grain, occasional fine and lower medium grain; sub-rounded to rounded in part with moderate to good sphericity; moderate sorting; fair to good consolidation in part; friable to crumbly in part with abundant silt/ clay component; slightly calcareous to calcareous; no visible porosity; trans- lucent, very light gray to milky white quartz; trace dark gray lithics; locally abundant silt, earthy carbonaceous material; trace biotite; very arenaceous extremely fine grain siltstone interbeds in a predominate sand unit; coal. Sandstone/ Sand (7760’ - 7850’) - light gray to medium light gray, pale yellowish brown to dark moderate yellowish brown; very fine to lower fine grain; rounded to sub-rounded; good sphericity; good sorting in part; friable to poorly cemented; often loose/ unconsolidated; silty to argillaceous, tuffaceous in part; dominantly translucent, very light gray, opaque quartz; non to very slight calcareous; earthy in places with locally abundant carbonaceous material; no visible porosity. Coal (7850’ - 7870’) - black to grayish black; dense; moderately hard to hard; irregular to planar, rare birdseye fracture; massive cuttings habit; sub-vitreous to dull/ matte; rarely sub-fissile; trace only out gassing bubbles. Tuffaceous Claystone/ Tuffaceous Siltstone (7900’ - 7980’) = light to very light gray with light brownish gray and light yellowish gray secondary hues; soft to fragile; irregular shaped cuttings; silty to clayey texture; dull to earthy luster; moderately expansive and soluble poor to fair cohesiveness and adhesiveness; non-calcareous; trace dark brown black micro thin carbonaceous laminations and inclusions. CLU STORAGE 1 14 Sand/ Sandstone (7940’ - 8040’) = light to very light gray overall with individual grains dominantly clear to translucent quartz and volcanic glass, trace amounts of bluish green, rust, orange, medium to dark gray, black and pale rose very coarse upper to very fine lower, dominantly fine upper to medium lower; angular to trace sub-rounded, dominantly sub-angular; poor sorting overall with fair to good sorting in fine to medium range; dominantly unconsolidated with scattered light grayish brown sandstone; very fine; fragile; non-calcareous; commonly grades between a sandy siltstone and silty sandstone. Sand/ Sandstone (8040’ - 8140’) = light gray overall with a moderate salt and pepper appearance, individual grains dominantly clear to translucent quartz and volcanic glass, medium to dark gray, black, light to medium greenish gray, rust, orange and dusky red; trace very coarse upper to very fine lower, dominantly fine upper to medium upper; angular to sub-angular; poor to fair sorting; dominantly unconsolidated with scattered sandstone; light gray to grayish brown; fragile; well sorted; fine to medium grain; non-calcareous; grain supported; trace grayish white ashy tuff; occasionally acts as supporting matrix for loose sands; non- calcareous Sand/ Sandstone/ Tuffaceous Sandstone (8140’ - 8230’) = light gray overall with abundant multicolored lithics, dominantly clear to translucent quartz and volcanic glass, medium to dark gray, black, light to medium bluish gray and bluish green, trace red, rust, orange and pale rose; trace very coarse upper to very fine lower, dominantly fine upper to medium lower; angular to sub-angular; poor to fair sorting; dominantly unconsolidated with trace tuffaceous sandstone; bluish white and pinkish gray ashy matrix supporting loose grains as previously described; very fragile to pulverulent; non-calcareous. Sand/ Tuffaceous Sandstone (8230’ - 8320’) = medium light to light gray overall with abundant multicolored lithics, dominantly clear to translucent quartz and volcanic glass with trace amounts of medium to dark gray, black, pale rose, dark red and light to medium green to greenish gray; very fine upper to trace coarse upper, dominantly fine upper to medium lower; angular to sub-angular; moderate to moderately well sorted; dominantly unconsolidated with scattered tuffaceous sandstone; white to light yellowish gray ashy supporting matrix; individual sand grains as previously described; fragile to pulverulent; non-calcareous. Sand/ Sandstone/ Tuffaceous Sandstone (8320’ - 8400’) = medium light to light gray overall with a weak salt and pepper appearance, individual grains dominantly clear to translucent quartz and volcanic glass with trace multicolored lithics as previously noted; very fine upper to rare coarse upper, dominantly fine upper to medium upper; angular to sub-angular; poor to fair sorting; dominantly unconsolidated with scattered tuffaceous sandstone; very fragile; light grayish white and light pinkish gray; very ashy; non-calcareous; acts a supporting matrix for loose sands. Sand/ Sandstone (8400’ - 8500’) = light to very light gray overall with individual grains dominantly clear to translucent quartz and volcanic glass, trace amounts of bluish green, rust, orange, medium to dark gray, black and pale rose very coarse lower to very fine lower, dominantly fine upper to medium lower; angular to trace sub-rounded, dominantly sub-angular; poor sorting overall with fair to good sorting in fine to medium range; dominantly unconsolidated with trace ashy/ tuffaceous sandstone; light grayish white matrix supporting fine to medium individual grains as described previously; very fragile to pulverulent; non-calcareous. Coal (8500’ - 8520’) = black to grayish black; moderately hard to firm; dense; irregular to blocky, occasionally splintery fracture; massive cuttings habit, tabular in part; sub-vitreous to vitreous; generally massive, occasionally sub-fissile; becomes earthy in part grading from a carbonaceous shale to a carbon rich earthy claystone. Tuffaceous Sandstone/ Conglomeratic Sand (8520’ - 8600’) = white, very light gray to light gray with occasionally yellowish brown hues; very fine grain; sub-angular to sub-rounded, angular in part; sub-discoidal and sub-prismoidal; fair to moderate sorting; friable, crumbly in part; grain supported and matrix supported evenly distributed; non-calcareous; no visible porosity; note loose medium to rare lower coarse grain sand; occasional well rounded pebble fragments with high impact fracture; tuffaceous claystone interbeds in a predominant sand unit; locally abundant sub-lignitic coal/ carbonaceous shale. CLU STORAGE 1 15 Sand/ Sandstone (8640’ - 8720’) = medium light to light gray with light greenish gray and light olive gray secondary hues; fragile to friable; very fine lower to fine lower; angular to sub-angular; fair to good sorting; grain supported with occasional brownish white, ashy supporting matrix; non-calcareous. Tuffaceous Claystone/ Tuffaceous Siltstone (8720’ - 8800’) = very light gray with light yellowish gray secondary hues and brownish gray to light brown with light brownish gray secondary hues; soft, fragile; irregular shaped cuttings; silty to clayey texture; earthy to dull luster; crumbly to pulverulent; hydrophilic; moderate to very soluble; slight to moderately expansive; poor adhesiveness; poor to fair cohesiveness; non- calcareous. Sandstone/ Tuffaceous Sandstone (8800’ - 8880’) = light yellowish gray with light brownish gray secondary hues and a weak salt and pepper appearance; very fine lower; angular to sub-angular; soft to friable; very well sorted; weakly consolidated; grain supported; non-calcareous tuffaceous sandstone is bluish white with pinkish gray and light bluish gray secondary hues; very soft and fragile; pulverulent; very fine grain; angular to sub- angular; moderate to very well sorted white ashy tuff supporting matrix; common visible glass shards. Tuffaceous Claystone/ Tuffaceous Siltstone (8880’ - 8940’) = light gray with light brownish gray secondary hues; soft and fragile to slightly firm; irregular shaped cuttings; silty to clayey texture dull to waxy luster; very soluble; poor adhesiveness; poor to fair cohesiveness; trace dark brown to black micro thin carbonaceous laminations and inclusions; trace light grayish brown siltstone commonly grades between sandy siltstone and silty sandstone; non-calcareous. Tuffaceous Sandstone/ Siltstone/ Claystone (8940’ - 9000’) = light gray with yellowish brown hues, light brownish gray to pale yellowish brown; very fine grain; rounded to sub-rounded with good sphericity; moderate to well sorted; very soft to slightly firm; non-calcareous; sandstone occasionally grain supported with abundant clay, often silty matrix; quartz grains dominantly translucent to very light gray; interval grades from an argillaceous siltstone to arenaceous claystone; trace carbonaceous material, tuff. Tuffaceous Sandstone/ Siltstone (9000’ - 9080’) = very light gray to light gray, commonly with light yellowish brown hues, pale yellowish brown; very fine to extremely fine grain; rounded to sub-rounded with moderate to good sphericity in part; moderate to well sorted; poorly cemented; soft, crumbly in part; non-calcareous; loose sand common; sandstone often grain supported abundant argillaceous to silty matrix; no visible porosity; dominantly translucent to very light gray quartz; very vine carbonaceous clasts, wispy streaks common; earthy in part; often grades towards an arenaceous siltstone/ silty claystone. Coal (9080’ - 9120’) = black, grayish black in part; moderately hard to firm; dense, occasionally brittle to crumbly; blocky to hackly fracture, trace birdseye; massive to tabular, platy cuttings habit; vitreous to sub- vitreous, somewhat plastic-like luster; generally massive, fissile to laminar cuttings common; earthy in part at base of unit. Sandstone/ Tuffaceous Siltstone (9120’ - 9220’) = very light gray to light gray with varying degrees of yellowish brown hues, light pale yellowish brown; very fine grain; rounded to well rounded with good sphericity; well to moderate sorting; poorly consolidated, very soft; non-calcareous; 30% grain supported all with abundant clay/ tuff/ silty matrix; dominantly translucent to very light gray quartz; black very fine carbonaceous clasts, flakes, scale-like and wispy streaks; trace biotite; often grades to very arenaceous siltstone, silty claystone in part; earthy in places; no visible porosity. Sand/ Sandstone/ Claystone (9220’ - 9320’) = light gray to very light gray, generally with light brownish hues, light pale yellowish brown; very fine grain, well rounded to sub-rounded in part; good to very good sphericity; well sorted; friable to poorly consolidated; occasionally loose; non-calcareous; predominantly grain supported, but matrix supported common; no visible porosity; grades from silty/ clayey sandstone to sandy siltstone; locally abundant carbonaceous clasts, flakes, platy and scale-like fragments; note abundant biotite. CLU STORAGE 1 16 Coal (9360’ - 9400’) = black with dark brown secondary hues; brittle to crumbly splintery to planar fracture; smooth to gritty texture; earthy to vitreous luster grading to carbonaceous mudstone; sub-bituminous to peat like; poorly developed no out gassing bubbles observed. Sandstone/ Sand/ Tuffaceous Sandstone (9400’ - 9480’) = medium light gray overall with light olive gray secondary hues individual grains dominantly clear to translucent quartz and volcanic glass, light gray to light greenish gray, trace rust and red lithics; very fine lower to medium lower, dominantly fine; angular to sub- rounded, dominantly sub-angular; fair to good sorting; moderately well consolidated; firm to soft and friable; dominantly grain supported with trace ashy tuff matrix; very fragile; non-calcareous; trace black carbonaceous material/ coal, occasionally interbedded in firmer fragments. Sand/ Sandstone/ Tuffaceous Sandstone (9480’ - 9570’) = light gray to very light gray overall with abundant vari-colored lithics, dominantly clear to translucent quartz and volcanic glass, light gray to light greenish gray, dark gray to black, trace rust, orange and pale rose; very fine lower to trace coarse lower, dominantly fine upper to lower; angular to sub-angular; poor to fair sorting; dominantly unconsolidated with trace brownish gray to light olive gray sandstone; very fine grain; well sorted; grain supported; friable to slightly firm; grain supported; non-calcareous; trace ashy sandstone; bluish white tuff matrix; very fragile; supporting individual grains as described previously; non-calcareous; trace dark brown to black carbonaceous material. Sand/ Sandstone/ Tuffaceous Sandstone (9580’ - 9661’) = light gray overall with individual grains dominantly clear to translucent quartz and volcanic glass, light gray to light greenish gray, trace rust and red lithics; very fine lower to medium lower, dominantly fine; angular to sub-rounded, dominantly sub-angular; fair to good sorting; moderately well consolidated; firm to soft and friable; dominantly grain supported with trace ashy tuff matrix; very fragile; non-calcareous; trace black carbonaceous material/ coal. CLU STORAGE 1 17 3.2 Sampling Program BOXED WASHED AND DRIED SAMPLES 1 Set Total: 1 Package of 6 Boxes Each Operator: CINGSA Well Name: CLU Storage 1 Field: Cannery Loop/ Sterling C Pool County: Kenai Borough State: Alaska Company Representatives: Steve Ratcliff, John Nicholson, Mike Grubb Location: Kenai Peninsula, Alaska Classification: Gas Storage API #: 50-133206000000 Permit #: 211149 Rig Name /Type: Nabors 105e/ Land/ Triple Total Depth 9661’MD/ 5164’TVD Total Depth Formation: Sterling C Total Depth Date: December 10, 2011 Logging Geologists: Larry Resch, Tollef Winslow, Ralph Winkelman, John Lundy Logger Trainees/ Sample Catchers: Justin Rosenblume, Dan Hillegeist Set Type and Purpose Interval Frequency Distribution 1 Washed and Dried Reference Samples 135’ to 7500’ 7500’ to 9661’ 30’ Interval 20’ Interval PRA/ CINGSA NOTE: All samples released to Ari Berland, Geologist, PRA/ CINGSA CLU STORAGE 1 18 4 DRILLING DATA 4.1 Daily Activity Summary November 26, 2011 CANRIG mudlogger Tollef Winslow and technician Allan Williams arrive on location 11/25/2011 and initiate rig up of logging unit. CANRIG mudlogger Larry Resch arrives 11/26/2011 at which time logging unit rig up operations are completed. NAD 105 continues to pick up 5” drill pipe, drifts at 2.867”, builds stands and racks back in derrick; test standpipe, manifold and surface lines; calibrate blocks with Baker and CANRIG; move BHA to pipe shed; set mouse hole; rig up tongs; pick up and stand back 3 NMDC; pick up mud motor and make up bit; pick up MWD; run in hole and tag bottom at 115 ft; rotary drill from 115 ft to 346 ft at 8k wob, 60 rpm, 400 gpm, 600 psi; blow down top drive; work on shakers; POOH 3 stands 5” HWDP; pick up 3 CSNMDP, 4 stands HWDP and jars; RIH; drill ahead from 346 ft to 796 ft at report time. November 27, 2011 Rotary drill/ slide from 796 ft to 1842 ft at 2-5k torque, 628 gpm, 1600-1900 psi; continue to rotary drill/ slide from 1842 ft to TD 16” hole section at 2967 ft at 625 gpm, 2100 psi, p/u 102k, s/o 86k, rot wt 88k. Currently circulating bottoms up at report time. November 28, 2011 Circulate and condition hole at TD 2967 ft; pump 40 bbl high vis sweep; circulate at 625 gpm, 1500 psi, 100 rpm, 13500 strokes total; monitor well; pull out of hole from 2967 ft to 785 ft; trip back to bottom from 785 ft to 2967 ft—no fill; pump 40 bbls high vis sweep at 525 gpm, 1000 psi, 40 rpm while reciprocating; pump 11000 strokes total; trip out of hole from 2967 ft; set back HWDP and drill collars; lay down BHA #1; prepare to run casing; rig up Weatherford; run 13-3/8: 68# J-55 casing to 2954 ft; float collar at 2912.3 ft; landed with 105k down wt; rig down 13-3/8” handling tools; rig up false table; make up 5” drill pipe cement stab in tool; add drill pipe centralizer 5 ft up. Currently running in hole with 5” drill pipe inner string at report time. November 29, 2011 Continue trip in hole with 5” drill pipe inner string to 2912 ft; rig up flow line from 13-3/8” stump; sting into float with inner string; rig up head pin and cement lines; break circulation and stage up to 5 bpm at 330 psi; circulate bottoms up; cement 13-3/8” casing through inner string per CINGSA/ Schlumberger cement procedure; cement in place at 0854 hrs; circulate and condition; CINGSA Safety Shutdown for drug dog search of location and vehicles; trip out of hole with cement sting in tool; lay down BHA and tools; service top drive, replace saver sub and gripper dies while waiting on cement; nipple down diverter system while cleaning pits; pick up on 13-3/8” casing at 125k; remove base plate, then slack off; pick up annular and diverter spool; rough cut 13-3/8” casing and lay down cutoff joint; set stack down and clean drip pan. Nipple up operations continue at report time. November 30, 2011 Continue nipple down/ nipple up operations; cut 20” conductor; cut and dress 13-3/8” casing—24.55 ft total removed; take on FloPro mud while cleaning pits; complete nipple up of BOP’s; clean screens in mud pump #1 and #2; fill hole and stack with mud; function test BOPE; set test plug and test BOP’s 250 psi low/ 2500 psi high; CANRIG records and charts pressure test of 13-3/8” casing at 2000 psi for 30 minutes; blow down top drive, kill and choke line. Currently preparing to pick up BHA #2 at report time. CLU STORAGE 1 19 December 1, 2011 Pick up BHA #2 (12-1/4” bit) and HWDP; Trip in hole to 2794 ft; wash and rotate from 2794 ft to 2896 ft; tag top of cement at 2896 ft; drill shoe track from top of cement at 2896 ft to float collar at 2912 ft and shoe at 2956 ft with firm cement below shoe and in returns; drill out 20 foot of new hole to 2987 ft; displace well and pits to 9.0 ppg Flo Pro mud---420 bbls, 5600 strokes; circulate until even mud weight at 9.0 ppg; perform FIT at 2642 ft, 9.0 ppg test fluid at 823+ psi...15.0 ppg EMW; drill ahead from 2986 ft to 3943 ft; pump 32 bbl high viscosity sweep around; drill ahead from 3943 ft to 4583 ft at report time with no excess drag and no hole problems. December 2, 2011 Drill ahead from 4583 ft to 5281 ft at 14k wob, 130 rpm, 10k torque, 600 gpm, 1650 psi, p/u 140k, s/o 80k, rot 100k; circulate bottoms up 8600 strokes at 5281 ft; wipe hole/ back ream from 5281 ft to shoe at 2956 ft at 100 rpm, 10k torque, 350 gpm, 650 psi; circulate bottoms up until hole clean at 610 gpm, 1500 psi; service top drive, blocks, crown; install safety wires on bolts; change out shaker screens to 200’s, blow down top drive; trip back to bottom from 2956 ft to 5185 ft; kelly up –wash and rotate to 5281 ft; drill ahead from 5281 ft at 15k wob, 130 rpm, 10k torque, 609 gpm, 1720 psi, p/u 155k, s/o 105k, rot 110k. Currently drilling ahead to 5955 ft at report time. December 3, 2011 Drill ahead from 5955 ft to 6813 ft at 17k wob, 13-16k torque, 600 gpm, 1900 psi, p/u 165k, s/o 90k, rot wt 122k; pump 40 bbl high viscosity sweep at 6813 ft, 625 gpm, 2000 psi; 20% increase in cuttings as sweep returns, drill ahead from 6813 ft to 7100 ft; service top drive, blocks, crown; troubleshoot RigWatch computer freeze up; drill ahead from 7100 ft to casing point at 7573 ft; final parameters 6/12k wob, 120 rpm, 15-23k torque, 623 gpm, 1900 psi, p/u 175k, s/o 93k, rot wt 125k; spot 70 bbl lcm pill at 2476 stks; back ream out of hole while circulating bottoms up from 7573 ft to 7388 ft at report time. December 4, 2011 Continue to back ream out of hole from 7388 ft; work tight spot from 5663 ft to 5472 ft; circulate bottoms up at shoe at 2956 ft; pump 14 bbl dry job; blow down top drive, down link equipment and cement line; continue trip out of hole from 2956 ft to 879 ft; strap drill pipe each row out; rack back HWDP and jars in derrick; lay down BHA and drill collars; download MWD and lay down; blow down stack and change out rams to 9-5/8”; pick up 9-5/8” hanger—land in well head and verify; lay down same; fill hole 8 bbls for 4 hours; rig up stabbing board. Rig up operations to run 9-5/8” casing continues at report time. December 5, 2011 Rig up Weatherford and prepare to run 9-5/8” 40# L-80 BTC casing; run in hole to just above13-3/8” casing shoe to 2934 ft; circulate bottoms up at 350 gpm, 300 psi, 3000 stks; continue running 9-5/8” casing from 2934 ft to 3544 ft at p/u 135k, s/o 110k, 2-1/2 BPH losses at end of tour; continue running 9-5/8” casing from 3544 ft to 7465 ft at 255k p/u, 139k s/o; hole takes weight from casing; pull 350k to break—work pipe; free up point using fill up tool; pump 40-50 spm at 450-860 psi; wash down joint #’s 184 and 185; make up landing joint and hanger; land casing 185 joints total. CANRIG records 86 units of gas while running casing (bottoms up is not to surface yet); total displacement 94 bbls observed for entire casing run. Currently rigging down casing equipment and fill up tool at report time. CLU STORAGE 1 20 December 6, 2011 Rig down Weatherford casing equipment; rig up Schlumberger cement head; circulate bottoms up; CANRIG records 186 units maximum gas observed while circulating; pressure test lines at 1000 psi low, 4000 psi high; pump cement per CINGSA/ SLB procedure; cement to surface on first and second stage; cement in place at 1100 hours; blow down/ rig down cement lines; flush stack, kill and choke ports, drip pan and flow line; function all rams and flush; flush from outer annulus to clear hanger ports; set hanger; lay down 450 ton elevators, casing running tool an cement head; change pipe rams to 5x7 variable; open, clean and inspect blind rams; rig down stabbing board; service top drive, change out bales; load pipe shed with 42 joints 5” drill pipe; test installed rams/ BOP’s; pick up rig tongs. Currently preparing to make up BHA #3 at report time. December 7, 2011 Pick up and make up 8-1/2” bit and BHA #3; make up MWD assembly and load sources; pick up 8 stands HWDP; cut 65 ft of drill line and slip same; repaired broken safety wire on top drive; pick up 51 joints 5” drill pipe to2608 ft; fill drill pipe at 400 gpm, 1100 psi; continue to trip in hole from 2608 ft to 3278 ft; wash and rotate down from 3278 ft to tag at 3373 ft; drill out DV collar and wash to 3469 ft; pressure test 9-5/8” casing shoe to 2500 psi for 30 minutes; CANRIG records and charts test; bleed off and blow down kill line; trip in hole on elevators from 3469 ft to 7476 ft chasing junk to bottom from 3800 ft; drill shoe track and cement from 7482 ft to 7569 ft; drill 20 ft new hole from 7573 ft to 7593 ft; pull into shoe and circulate bottoms up at 350 gpm, 1200 psi. Perform FIT/ LOT with 9.4 ppg mud to 1418 psi, results = 14.9 ppg EMQ; blow down all surface equipment; drill ahead from 7593 ft to 7680 ft at 60 rpm, 12k torque, 370 gpm, 1280 psi, p/u 160k, s/o 92k, rot wt 115k. Currently drilling ahead from 7680 ft at report time. December 8, 2011 Drill ahead rotating/ slide from 7680 ft to 8268 ft at 3-5k wob, 100 rpm, 12k torque, 405 gpm, 1650 psi, rop 80 ft/hr; drill ahead rotating/ slide from 8268 ft to 8638 ft at 3-11k wob, 100/ 60 rpm, 9-12k torque, 414 gpm, 1720 psi, rot wt 116k; back ream from 8638 ft to shoe at 7563 ft—60 rpm, 414 gpm; lost communication with top drive—handler, link tilt and back up wrench disabled. Currently troubleshooting top drive issues at report time. December 9, 2011 Continue troubleshooting top drive communications; check all wiring connections, reboot computer; replace service loop cable; continue back reaming from 8159 ft to 7584 ft; spot 40 bbl LCM pill; let LCM pill soak while servicing top drive; trip in hole from 7488 ft to 8542 ft; pump 50 bbls LCM pill; wash down 8542 ft to 8638 ft; rotary drill ahead from 8638 ft to 8720 ft; circulate bottoms up at 8720 ft; CANRIG records 1165 units of gas; rotary drill/ slide from 8720 ft to 9266 ft at 65-100 rpm, 10-12k torque, 405 gpm, 1750 psi rot/ 1880 psi on bottom, control drill at 80 ft/hr; back ream each stand at 60 rpm. Currently drilling ahead from 9266 ft at report time. December 10, 2011 Rotary drill/ slide from 9226 ft to 9308 ft at 8-10k wob, 80/ 0 rpm, 402 gpm, 1600 psi, p/u 155k, s/o 95k, rot wt 113k; circulate and condition while waiting on orders while working pipe from 9308 ft to 9300 ft; rotary drill/ slide from 9308 ft to TD at 9661 ft; circulate and condition hole; back ream from 9661 ft to 9500 ft with no tight spots; back ream from 9500 ft to shoe at 7563 ft at 400 gpm, 1800 psi, 55 rpm, 9k torque; work through tight spots at 9198 ft and 8437 ft plus additional minor spots; circulate and condition at 7563 ft; pump 70 bbl high viscosity sweep at 400 gpm, 1530 psi, 7800 strokes; pump 25 bbl dry job; blow down and service top drive, blocks and crown; continue trip out of hole from 7563 ft to 4619 ft at report time. CLU STORAGE 1 21 December 11, 2011 Continue trip out of hole from 4619 ft to top of BHA; lay down 5” HWDP, jars, collars; download MWD data and lay down same, motor, bit; clear BHA from floor and pipe shed; rig up Baker CBL tools; run CBL on 9-5/8” casing from 7574 ft to 5000 ft; pull out of hole and rig down CBL logging tools; service rig—all hands working on snow and ice falling from derrick; prepare to run 7” liner; make up float assembly; fill pipe and check float; run in hole with 7” 26# VAM top liner, filling every five joints. Currently running in hole with 7” liner at 2286 ft at report time. December 12, 2011 Casing operations continue; make up 7” liner hanger/ packer, p/u 70k, s/o 65k; circulate 68 bbls tubing volume at 228 gpm, 316 psi; trip in hole with 7” liner on 5” drill pipe; break circulation and fill pipe every 10 stands; pick up a single, make up cement rotating head and lay down same; circulate bottoms up at 7520 ft; continue to run in hole with 7” liner on 5” drill pipe to 9620 ft at p/u 165k, s/o 80k; tag tight spot at 9-5/8” shoe at 7563 ft; pump and work down from 9620 ft at 165 gpm, 690 psi, p/u 175k, s/o 85-40k; make up cement head and line; build volume-weight; circulate bottoms up 6800 strokes at 165 gpm, 800 psi; CANRIG records maximum 287 units of gas from bottoms up; pressure test cement lines at 1000 psi low/ 4800 psi high; cement 7” liner per CINGSA procedure; pump 35 bbl mud push; Schlumberger pumps 74 bbls FLEXSTONE 14.0 ppg cement; drop dart and chase with perf pill; bump plug at 2758 strokes and 2200 psi; cement in place at 1920 hours; free liner per Baker rep and pick up 30 ft; rig down cementers; circulate bottoms up at 334 gpm, 1080 psi; rig down/ lay down cement line and cement head; pump wiper ball down and circulate bottoms up at 378 gpm, 600 psi; pump dry job, blow down top drive and install wiper ball. Currently tripping out of hole to 6028 ft at report time. December 13, 2011 Continue to pull out of hole from 6028 ft; lay down liner hanger; pick up 7” x 9-5/8” dressing mill; trip in hole to top of liner at 7343 ft; dressed 7” x 9-5/8” liner tie back receptacle at 7343 ft at 4k wob, 40 rpm, 7k torque; verify clean sting in with pump off (X2); circulate bottoms up at 160 gpm, 350 psi; clean pits #1-5; stage and load chemical for completion fluid; test 7” liner at 2500 psi for 30 minutes; CANRIG records and charts test; take on water to pits; build 650 bbls KCl completion fluid; service top drive; pick up drill pipe thread protectors; displace to completion fluid—pump 40 bbl spacer, KCl to surface at 690 gpm, 263 psi, 7200 total strokes; blow down top drive. Currently laying down 5” drill pipe from 7343 ft to 7211 ft at report time. December 14, 2011 Continue to lay down 5” drill pipe from 7211 ft; run in hole with 5” drill pipe from derrick to 1648 ft, lay down same; lay down dressing mill; pull wear bushing; drain stack; dummy run landing joint and hanger with FMC, lay down same; attempts to land test plug and 7” test joint fail; change out seal ring and reset; test BOP’s and related valves with 7” test joint at 250 psi low, 2500 psi high; BOP test waived witness by AOGCC representative Jeff Jones; rig down/ lay down all test equipment upon completion; blow down surface equipment; prepare to run 7” tubing; change to long bales; rig up 7” handling equipment and Weatherford torque turn double tongs. Currently picking up and inspecting 7” shoe track and seal assembly at report time. December 15, 2011 Run in hole with 7” 26# L-80 VAM top liner per CINGSA running order; circulate down last joint at 221 gpm312 psi to 7325 ft; pressure increases; shut down pumps; sting in seal assembly no-go @ 45.5’ down from rotary; lay down 3 joints; pull joint # 234 and 233; make up test control line on S.S.S.V and secure to pipe; space out with 4.90’ and 19.39’ pups; make up joint # 235, landing joint and hanger; terminate control line; land hanger and verify; reverse circulate 200 gallons diesel and Conqer 303A inhibitor; chase with 207 bbls brine at 285 gpm, 460 psi; let settle and drain stack; landing hanger 165k/ 112k; R.I.L.D.S.; rig down landing joint; rig up and test 7” tubing to 3000 psi for 30 minutes at 63 strokes; test 7” x 9-5/8” annulus to 1500 psi for 30 minutes at 47 strokes; CANRIG records and charts both tests; secure well, drain stack; install BPV as per FMC; flush stack, mud pumps, choke manifold and blow down all; drain pits. CANRIG released from obligations at 2250 hours. ML057 rig down operations continue at report time. CLU STORAGE 1 22 4.2 Surveys Measured Depth (ft) Incl. (o) Azim. (o) True Vertical Depth (ft) Latitude (ft) N(+), S(-) Departure (ft) E(+), W(-) Vertical Section (Incr) (ft) Dogleg Rate (o/100ft) 0 0 0 0 0 0 0 206 0.42 221.64 206.00 0.56 0.50 0.45 0.2 298 0.63 204.81 297.99 -1.28 -0.94 0.82 0.28 383 0.93 198.10 382.99 -2.36 1.35 1.13 0.37 472 0.15 350.02 471.98 -2.93 -1.59 1.32 1.20 563 0.72 15.73 562.98 -2.26 -1.46 1.25 0.65 653 1.02 22.63 652.97 -0.98 -1.00 0.90 0.35 741 1.22 20.00 740.95 0.63 -0.37 0.43 0.23 831 1.31 23.98 830.93 2.47 0.38 -0.15 0.14 926 0.70 241.52 925.92 3.18 0.31 -0.02 2.01 1022 2.34 227.95 1021.89 1.59 -1.66 1.80 1.74 1118 3.46 233.00 1117.76 -1.47 -5.43 5.27 1.20 1214 6.12 238.24 1213.42 -5.91 -12.1 11.51 2.81 1309 9.69 239.24 1307.50 -12.66 -23.28 22.02 3.76 1405 13.04 239.08 1401.61 -22.36 -39.52 37.30 3.49 1500 15.99 239.82 1493.56 -34.45 -60.03 56.61 3.11 1596 18.51 241.05 1585.24 -48.48 -84.79 79.99 2.65 1692 20.89 241.08 1675.61 -64.13 -113.11 106.76 2.48 1788 23.32 241.81 1764.55 -81.39 -144.85 136.78 2.55 1884 25.75 242.63 1851.88 -99.95 -180.12 170.20 2.56 1980 29.01 242.82 1937.11 -120.18 -219.36 207.42 3.40 2075 32.24 241.07 2018.85 -142.96 -262.04 247.83 3.53 2170 34.90 242.19 2098.00 -167.91 -308.26 291.57 2.87 2267 37.23 244.10 2176.41 -193.67 -359.21 339.94 2.67 2362 40.24 243.93 2250.50 -219.72 -412.64 390.76 3.17 2458 43.38 244.69 2322.05 -247.45 -470.31 445.64 3.31 2553 45.36 244.08 2389.95 -276.17 -530.21 502.66 2.13 2649 47.34 241.38 2456.22 -308.01 -591.92 561.19 2.90 2746 51.24 240.10 2519.48 -343.97 -656.04 621.75 4.14 2842 53.98 240.20 2577.77 -381.92 -722.19 684.14 2.86 2914 55.68 242.79 2619.24 -410.00 -773.91 733.07 3.77 3040 56.42 243.89 2689.61 -456.89 -867.32 821.78 0.93 3135 57.89 243.74 2741.13 -492.11 -938.94 889.87 1.55 3232 58.41 242.91 2792.32 -529.10 -1012.56 959.79 0.90 3327 58.32 243.00 2842.15 -565.87 -1084.60 1028.16 0.12 3422 58.41 242.40 2891.98 -602.97 -1156.47 1096.33 0.55 3518 58.31 243.06 2942.34 -640.42 -1229.12 1165.23 0.59 CLU STORAGE 1 23 Measured Depth (ft) Incl. (o) Azim. (o) True Vertical Depth (ft) Latitude (ft) N(+), S(-) Departure (ft) E(+), W(-) Vertical Section (Incr) (ft) Dogleg Rate (o/100ft) 3614 58.29 242.19 2992.78 -677.97 -1301.65 1234.02 0.77 3709 58.41 242.35 3042.63 -715.60 -1373.23 1301.85 0.19 3805 58.48 242.40 3092.87 -753.54 -1445.71 1370.54 0.09 3901 58.50 242.34 3143.04 -791.49 -1518.22 1439.27 0.06 3997 58.47 241.54 3193.23 -829.99 -1590.44 1507.66 0.71 4091 58.49 240.94 3242.37 -868.54 -1660.69 1574.07 0.54 4187 58.45 241.82 3292.57 -907.74 -1732.52 1642.00 0.78 4281 58.51 242.02 3341.72 -945.46 -1803.22 1708.95 0.19 4377 58.49 242.30 3391.88 -983.68 -1875.59 1777.52 0.25 4472 58.63 241.61 3441.43 -1021.79 -1947.13 1845.26 0.64 4568 58.45 241.28 3491.53 -1060.93 -2019.06 1913.29 0.35 4663 58.44 242.26 3541.25 -1099.22 -2090.38 1980.81 0.88 4759 58.44 242.40 3591.49 -1137.21 -2162.83 2049.46 0.12 4855 58.48 242.52 3641.71 -1175.04 -2235.37 2118.24 0.11 4951 58.51 242.96 3691.88 -1212.53 -2308.13 2187.25 0.39 5047 58.46 242.78 3742.06 -1249.85 -2380.97 2256.36 0.17 5143 58.56 243.28 3792.20 -1286.97 -2453.93 2325.61 0.46 5239 58.52 243.18 3842.31 -1323.86 -2527.04 2395.03 0.10 5334 58.11 243.11 3892.21 -1360.38 -2599.16 2463.50 0.44 5429 58.12 242.46 3942.39 -1397.27 -2670.89 2531.55 0.58 5525 58.20 242.63 3993.03 -1434.87 -2743.26 2600.17 0.17 5620 58.11 243.22 4043.16 -1471.60 -2815.12 2668.36 0.54 5717 58.22 242.87 4094.32 -1508.95 -2888.57 2738.08 0.33 5812 58.08 246.31 4144.46 -1543.57 -2961.45 2807.47 3.08 5908 58.02 249.63 4195.27 -1574.12 -3036.94 2879.84 2.93 6004 56.18 252.99 4247.43 -1599.97 -3113.26 2953.48 3.51 6100 56.03 259.58 4301.00 -1618.85 -3190.61 3028.76 5.70 6196 55.99 264.59 4354.70 -1629.80 -3269.41 3106.22 4.33 6291 56.33 270.27 4407.63 -1633.33 -3348.18 3184.34 4.98 6388 56.81 276.94 4461.11 -1628.23 -3428.90 3265.19 5.76 6484 57.75 284.47 4513.05 -1613.22 -3508.16 3345.50 6.67 6579 58.74 290.26 4563.08 -1589.11 -3585.20 3424.42 5.29 6675 59.72 296.55 4612.23 -1556.34 -3660.83 3502.74 5.72 6771 61.16 302.19 4659.62 -1515.39 -3733.54 3578.90 5.33 6866 63.01 306.97 4704.11 -1467.74 -3802.61 3652.04 4.85 6961 65.03 312.27 4745.75 -1413.29 -3868.34 3722.48 5.45 7057 66.98 317.18 4784.81 -1351.58 -3930.60 3790.14 5.09 7152 68.94 321.22 4820.47 -1284.93 -3988.11 3853.52 4.45 7248 71.12 324.53 4853.26 -1212.99 -4042.54 3914.31 3.96 CLU STORAGE 1 24 Measured Depth (ft) Incl. (o) Azim. (o) True Vertical Depth (ft) Latitude (ft) N(+), S(-) Departure (ft) E(+), W(-) Vertical Section (Incr) (ft) Dogleg Rate (o/100ft) 7344 73.49 328.78 4882.45 -1136.60 -4092.77 3971.34 4.89 7440 76.24 332.22 4907.52 -1055.96 -4138.38 4024.14 4.49 7532 79.64 334.19 4926.74 -975.66 -4178.92 4071.88 4.25 7620 80.58 334.21 4941.85 -897.61 -4216.65 4116.60 1.07 7717 81.14 335.05 4957.26 -811.08 -4257.68 4165.40 1.03 7813 80.96 335.19 4972.20 -725.05 -4797.58 4213.01 0.24 7909 82.48 334.91 4986.02 -638.92 -4337.65 4260.81 1.61 8005 84.80 335.53 4996.66 -552.30 -4377.64 4308.57 2.50 8100 84.96 335.77 5005.13 -466.10 -4416.65 4355.32 0.30 8196 85.11 335.98 5013.44 -378.81 -4455.74 4402.25 0.27 8290 83.87 335.56 5022.47 -293.49 -4494.14 4448.31 1.39 8386 83.60 335.60 5032.94 -206.60 -4533.59 4495.56 0.28 8483 83.35 335.94 5043.97 -118.72 -4573.14 4543.00 0.43 8579 84.06 335.71 5054.49 -31.67 -4612.22 4589.89 0.78 8675 83.43 335.93 5064.61 55.42 -4651.32 4636.82 0.32 8771 84.55 335.65 5074.32 142.53 -4690.49 4683.80 0.79 8867 85.07 335.65 5083.00 229.63 -4729.91 4731.04 0.54 8963 85.57 335.64 5090.84 316.79 -4769.36 4778.32 0.52 9058 85.11 335.89 5098.56 403.14 -4808.23 4824.94 0.55 9154 84.68 335.57 5107.10 490.30 -4847.53 4872.07 0.56 9250 83.01 336.36 5117.39 577.47 -4886.41 4918.77 1.92 9346 83.25 335.70 5128.87 664.56 -4925.13 4965.31 0.73 9441 83.07 335.50 5140.19 750.46 -4964.09 5011.99 0.28 9538 82.92 335.42 5152.02 838.04 -5004.08 5059.83 0.17 9602 84.09 335.74 5159.26 895.94 -5030.37 5091.32 1.89 p. 9661 85.85 335.74 p. 5164.43 949.52 -5054.52 5120.28 2.98 CL U S T O R A G E 1 25 4. 3 B i t R e c o r d BI T NO . SI Z E TY P E S / N JE T S / TF A IN O U T F T H R S AV E RO P Ft / H R CONDITION 1 1 6 ” H C C M X 1 5 1 9 4 4 0 3 3x 1 8 , 1 6 c j / 0. 9 2 4 11 5 ’ 2 9 6 7 ’ 2 8 5 2 ’ 1 6 . 9 1 6 8 . 8 1 - 1 - W T - A - E - I - N O - T D 2 1 2 - 1 / 4 ” H C C Q D 5 0 5 X X 7 0 2 2 2 8 7 8x 1 2 / 0. 8 7 9 7 29 6 7 ’ 7 5 7 3 ’ 4 6 0 6 ’ 3 4 . 7 1 3 2 . 7 1 - 1 - W T - A - X - I - N O - T D 3 8 - 1 / 2 ” H C C H C R 5 0 3 Z X 7 1 1 4 3 2 8 3x 1 3 , 3 x 1 4 / 0. 8 3 9 9 75 7 3 ’ 9 6 6 1 ’ 2 0 8 8 ’ 3 0 . 8 6 7 . 8 1 - 1 - C T - G - X - I - W T - T D CL U S T O R A G E 1 26 4. 4 M u d R e c o r d Co n t r a c t o r : M I S w a c o Mu d T y p e : S u r f a c e : G e l / G e l e x S p u d M u d 1 1 5 ’ – 2 9 6 7 ’ ; In t e r m e d i a t e / P r o d u c t i o n : F l o - P r o N T 2 9 6 7 ’ – 9 6 6 1 ’ ’ Da t e D e p t h MW (p p g ) VI S (s / q t ) PV Y P G e l s FL (c c ) FC So l s (% ) O/ W Ra t i o Sd (% ) MB T p H Cl (ml/l) Ca (ml/l) 11 / 2 6 / 2 0 1 1 7 0 5 8 . 9 5 8 1 1 1 5 7 / 1 1 / 1 3 1 2 . 2 2 4 / 9 6 0 . 3 2 0 . 0 9 . 0 9 0 0 8 0 11 / 2 7 / 2 0 1 1 2 8 0 1 9 . 3 5 3 1 4 1 5 7 / 1 4 / 1 9 1 0 . 8 2 6 / 9 4 0 . 5 2 0 . 0 9 . 0 9 0 0 8 0 11 / 2 8 / 2 0 1 1 2 9 6 7 9 . 3 4 7 1 2 1 5 5 / 8 / 1 1 8 . 6 - - 6 / 9 4 5 . 0 2 2 . 5 9 . 1 7 0 0 8 0 11 / 2 9 / 2 0 1 1 2 9 6 7 9 . 3 4 7 1 2 1 3 5 / 8 / 1 1 8 . 6 - - 6 / 9 4 5 . 0 2 2 . 5 9 . 2 7 0 0 1 6 0 11 / 3 0 / 2 0 1 1 2 9 6 7 9 . 3 4 7 1 2 1 3 5 / 8 / 1 1 8 . 6 2 6 / 9 4 0 . 5 2 2 . 5 9 . 2 7 0 0 1 6 0 12 / 0 1 / 2 0 1 1 4 5 5 4 9 . 2 4 7 1 0 2 0 1 1 / 1 2 / 1 7 8 . 4 2 6 2 / 9 2 0 . 1 8 . 0 9 . 2 1 7 0 0 0 3 2 0 12 / 0 2 / 2 0 1 1 5 9 5 1 9 . 2 4 7 1 1 1 8 9 / 1 2 / 1 7 7 . 2 1 6 3 / 9 1 0 . 2 5 8 9 . 2 2 9 0 0 0 2 8 0 12 / 0 3 / 2 0 1 1 7 4 0 7 9 . 3 4 7 1 2 1 9 1 0 / 1 3 / 1 7 6 . 7 1 7 4 / 8 9 0 . 2 5 1 0 9.2 32000 320 12 / 0 4 / 2 0 1 1 7 5 7 3 9 . 3 4 9 1 2 1 9 1 0 / 1 3 / 1 7 6 . 7 1 7 4 / 8 9 0 . 2 5 1 0 9 . 1 3 1 0 0 0 3 2 0 12 / 0 5 / 2 0 1 1 7 5 7 3 9 . 3 4 9 1 2 1 8 1 0 / 1 3 / 1 6 6 . 6 1 7 4 / 8 9 0 . 2 5 1 0 9 . 2 3 1 5 0 0 2 8 0 12 / 0 6 / 2 0 1 1 7 5 7 3 9 . 3 4 9 1 4 1 4 8 / 1 0 / 1 3 6 . 6 1 7 4 / 8 9 0 . 2 5 1 0 9 . 1 2 9 0 0 0 3 2 0 12 / 0 7 / 2 0 1 1 7 5 7 3 9 . 4 5 2 1 6 1 3 6 / 9 / 1 2 7 . 6 1 9 4 / 8 7 0 . 2 5 1 0 9 . 3 2 8 5 0 0 3 2 0 12 / 0 8 / 2 0 1 1 8 6 3 8 9 . 5 6 0 1 9 2 0 1 2 / 2 1 / 2 4 5 . 6 1 1 0 4 / 8 6 0 . 2 5 1 1 9 . 1 3 1 5 0 0 3 2 0 12 / 0 9 / 2 0 1 1 9 2 6 6 9 . 3 6 0 1 5 1 6 9 / 1 6 / 2 9 5 . 2 1 9 4 / 8 7 0 . 1 1 0 8 . 9 3 1 0 0 0 2 8 0 12 / 1 0 / 2 0 1 1 9 6 6 1 9 . 3 6 0 1 6 1 6 1 0 / 1 6 / 2 8 5 . 7 1 9 4 / 8 7 0 . 1 1 0 8 . 7 3 2 5 0 0 2 4 0 12 / 1 1 / 2 0 1 1 9 6 6 1 9 . 3 6 0 1 6 1 6 9 / 1 5 / 2 6 5 . 6 1 9 4 / 8 7 0 . 1 1 0 8 . 7 3 2 0 0 0 2 4 0 12 / 1 2 / 2 0 1 1 9 6 6 1 9 . 4 6 2 1 7 1 5 1 0 / 1 5 / 2 6 5 . 6 1 9 4 / 8 7 0 . 1 1 0 9 . 0 3 2 0 0 0 2 4 0 12 / 1 3 / 2 0 1 1 9 6 6 1 8 . 6 2 7 1 1 1 / 1 / 1 n / a n / a / 9 9 8 . 2 2 4 8 0 0 4 0 12 / 1 4 / 2 0 1 1 9 6 6 1 8 . 7 8 . 3 2 6 8 0 0 Ab b r e v i a t i o n s : MW = M u d W e i g h t V I S = F u n n e l V i s c o s i t y PV = P l a s t i c V i s c o s i t y Y P = Y i e l d P o i n t G e l s = G e l S t r e n g t h F L = W a t e r o r F i l t r a t e Lo s s F C = F i l t e r C a k e O / W = O i l t o W a t e r r a t i o S o l s = S o l i d s S d = S a n d c o n t e n t M B T = M e t h y l e n e B l u e A l k = A l k a l i n i t y , M u d pH = % H y d r o g e n i o n C l = C h l o r i d e s C a = H a r d n e s s C a l c i u m n r = N o t R e c o r d e d CL U S T O R A G E 1 27 4. 5 D r i l l i n g P r o g r e s s C h a r t t CLU STORAGE 1 50 5 DAILY DRILLING REPORTS Cook Inlet Natural Gas Cannery Loop/ Sterling C DAILY WELLSITE REPORT CLU Storage 1 REPORT FOR John Nicholson, Mike Grubb DATE Nov 26, 2011 DEPTH 796' PRESENT OPERATION Drilling Ahead TIME 2359 hrs YESTERDAY 115' 24 HOUR FOOTAGE 681' CASING INFORMATION 20" Conductor @ 115' SURVEY DATA DEPTH INCLINATION AZIMUTH VERTICAL DEPTH 206' 0.42 221.64 206.00' 383' 0.93 198.10 382.99' 653' 1.02 22.63 652.97' 741' 1.22 20.20 740.95' 831' 1.31 23.98 830.93' BIT INFORMATION INTERVAL CONDITION REASON NO. SIZE TYPE S/N JETS/ TFA IN OUT FOOTAGE HOURS T/B/C PULLED 1 16" HCC MX1 5194403 3x18,16cj/ 0.924 115' 681' 4.1 DRILLING PARAMETERS HIGH LOW AVERAGE CURRENT AVG RATE OF PENETRATION 356 @ 262' 28.8 @ 135' 222.0 52.9 FT/HR SURFACE TORQUE 4516 @ 574' 1 @ 448' 1294.7 1306 FT-LBS WEIGHT ON BIT 9 @ 220' 1 @ 282' 3.3 4.47 KLBS ROTARY RPM 67 @ 677' 52 @ 348' 55.0 63 RPM PUMP PRESSURE 1062 @ 711' 462 @ 168' 742.9 1030 PSI DRILLING MUD REPORT DEPTH 705/ 698 MW 8.9 VIS 58 PV 11 YP 15 GELS 7/11/13 FL 12.2 CL- 900 FC 2 SOL 4 SD 0.3 OIL /96 MBT 20 pH 9.0 Ca+ 80 KCl MWD SUMMARY INTERVAL 115' TO Current TOOLS Motor-Steerable 1.3 degree, MWD Gamma GAS SUMMARY (units) HIGH LOW AVERAGE DITCH GAS 16 @ 781' 0 @ 1.3 TRIP GAS 0 CUTTING GAS @ @ WIPER GAS n/a CHROMATOGRAPHY (ppm) SURVEY 0 METHANE (C-1) 3451 @ 781' 0 @ 218.8 CONNECTION GAS HIGH 0 ETHANE (C-2) 0 @ @ AVG 0 PROPANE (C-3) 0 @ @ CURRENT 0 BUTANE (C-4) 0 @ @ CURRENT BACKGROUND/AVG 11u PENTANE (C-5) 0 @ @ HYDROCARBON SHOWS None INTERVAL LITHOLOGY/REMARKS GAS DESCRIPTION LITHOLOGY PRESENT LITHOLOGY No cutting samples collected while drilling surface hole. DAILY ACTIVITY SUMMARY November 26, 2011 CANRIG mudlogger Tollef Winslow and technician Allan Williams arrive on location 11/25/2011 and initiate rig up of logging unit. CANRIG mudlogger Larry Resch arrives 11/26/2011 at which time logging unit rig up operations are completed. NAD 105 continues to pick up 5” drill pipe, drifts at 2.867”, builds stands and racks back in derrick; test standpipe, manifold and surface lines; calibrate blocks with Baker and CANRIG; move BHA to pipe shed; set mouse hole; rig up tongs; pick up and stand back 3 NMDC; pick up mud motor and make up bit; pick up MWD; run in hole and tag bottom at 115 ft; rotary drill from 115 ft to 346 ft at 8k wob, 60 rpm, 400 gpm, 600 psi; blow down top drive; work on shakers; POOH 3 stands 5” HWDP; pick up 3 CSNMDP, 4 HWDP and jars; RIH; drill ahead from 346 ft to 796 ft at report time. CANRIG PERSONNEL ON BOARD Resch, Winslow___ DAILY COST $2427.00 REPORT BY Larry Resch Cook Inlet Natural Gas Cannery Loop/ Sterling C DAILY WELLSITE REPORT CLU Storage 1 REPORT FOR John Nicholson, Mike Grubb DATE Nov 27, 2011 DEPTH 2966' PRESENT OPERATION Circulate bottoms up at TD--surface hole section TIME 2359 hrs YESTERDAY 796.' 24 HOUR FOOTAGE 2170' CASING INFORMATION 20" Conductor at 115' SURVEY DATA DEPTH INCLINATION AZIMUTH VERTICAL DEPTH 1022' 2.34 227.95 1021.89' 1500' 15.99 239.82 1493.56' 1980' 29.01 242.82 1937.11' 2458' 43.38 244.69 2322.05' 2914' 55.68 242.79 2619.25' BIT INFORMATION INTERVAL CONDITION REASON NO. SIZE TYPE S/N JETS/ TFA IN OUT FOOTAGE HOURS T/B/C PULLED 1 16" HCC MX1 5194403 3x18,16cj/ 0.924 115' 2852' 16.9 DRILLING PARAMETERS HIGH LOW AVERAGE CURRENT AVG RATE OF PENETRATION 398.9 @ 1738' 17.1 @ 2809' 206.2 215.4 FT/HR SURFACE TORQUE 10506 @ 1768' 0 @ Slide 1269.3 5462 FT-LBS WEIGHT ON BIT 30 @ 2752' 1 @ 1063' 13.6 4.6 KLBS ROTARY RPM 77 @ 1522' 0 @ Slide 29.0 76 RPM PUMP PRESSURE 2176 @ 2640' 835 @ 798' 1731.4 1894 PSI DRILLING MUD REPORT DEPTH 2810/ 2661 MW 9.3 VIS 53 PV 14 YP 15 GELS 7/14/19 FL 10.8 CL- 900 FC 2 SOL 6 SD 0.5 OIL /94 MBT 20 pH 9.0 Ca+ 80 KCl MWD SUMMARY INTERVAL 115' TO 2967' TOOLS Motor-Steerable 1.3 degree, MWD gamma GAS SUMMARY (units) HIGH LOW AVERAGE DITCH GAS 85 @ 2087' 1 @ 856' 17.1 TRIP GAS n/a CUTTING GAS @ @ WIPER GAS n/a CHROMATOGRAPHY (ppm) SURVEY 0 METHANE (C-1) 17170 @ 2087' 206 @ 856' 3541.7 CONNECTION GAS HIGH 0 ETHANE (C-2) 0 @ @ AVG 0 PROPANE (C-3) 0 @ @ CURRENT 0 BUTANE (C-4) 0 @ @ CURRENT BACKGROUND/AVG 9u PENTANE (C-5) 0 @ @ HYDROCARBON SHOWS None INTERVAL LITHOLOGY/REMARKS GAS DESCRIPTION LITHOLOGY PRESENT LITHOLOGY No cutting samples collected while drilling surface hole section. DAILY ACTIVITY SUMMARY November 27, 2011 Rotary drill/ slide from 796 ft to 1842 ft at 2-5k torque, 628 gpm, 1600-1900 psi; continue to rotary drill/ slide from 1842 ft to TD 16” hole section at 2967 ft at 625 gpm, 2100 psi, p/u 102k, s/o 86k, rot wt 88k. Currently circulating bottoms up at report time. CANRIG PERSONNEL ON BOARD Resch, Winslow ___ DAILY COST $2427.00 REPORT BY Larry Resch Cook Inlet Natural Gas Cannery Loop/ Sterling C DAILY WELLSITE REPORT CLU Storage 1 REPORT FOR John Nicholson, Mike Grubb DATE Nov 28, 2011 DEPTH 2966' PRESENT OPERATION 13-3/8" Casing Operations TIME 2359 hrs YESTERDAY 2966' 24 HOUR FOOTAGE 0' CASING INFORMATION 20" Conductor at 115'___ 13-3/8" @ SURVEY DATA DEPTH INCLINATION AZIMUTH VERTICAL DEPTH 2914' 55.68 242.79 2619.25' BIT INFORMATION INTERVAL CONDITION REASON NO. SIZE TYPE S/N JETS/ TFA IN OUT FOOTAGE HOURS T/B/C PULLED 1 16" HCC MX1 5194403 3x18,16cj/ 0.924 115' 2967' 2852' 16.9 Csg Pt DRILLING PARAMETERS HIGH LOW AVERAGE CURRENT AVG RATE OF PENETRATION @ @ FT/HR SURFACE TORQUE @ @ FT-LBS WEIGHT ON BIT @ @ KLBS ROTARY RPM @ @ RPM PUMP PRESSURE @ @ PSI DRILLING MUD REPORT DEPTH 2967/ 2649 MW 9.3 VIS 47 PV 12 YP 15 GELS 5/8/11 FL 8.6 CL- 700 FC SOL 6 SD 5 OIL MBT 22.5 pH 9.1 Ca+ 80 KCl MWD SUMMARY INTERVAL TO TOOLS No tools in hole this period. GAS SUMMARY (units) HIGH LOW AVERAGE DITCH GAS @ @ TRIP GAS n/a CUTTING GAS @ @ WIPER GAS 0 CHROMATOGRAPHY (ppm) SURVEY n/a METHANE (C-1) @ @ CONNECTION GAS HIGH n/a ETHANE (C-2) @ @ AVG n/a PROPANE (C-3) @ @ CURRENT n/a BUTANE (C-4) @ @ CURRENT BACKGROUND/AVG n/a PENTANE (C-5) @ @ HYDROCARBON SHOWS No new footage drilled this period. INTERVAL LITHOLOGY/REMARKS GAS DESCRIPTION LITHOLOGY PRESENT LITHOLOGY No new footage drilled this period. DAILY ACTIVITY SUMMARY November 28, 2011 Circulate and condition hole at TD 2967 ft; pump 40 bbl high vis sweep; circulate at 625 gpm, 1500 psi, 100 rpm, 13500 strokes total; monitor well; pull out of hole from 2967 ft to 785 ft; trip back to bottom from 785 ft to 2967 ft—no fill; pump 40 bbls high vis sweep at 525 gpm, 1000 psi, 40 rpm while reciprocating; pump 11000 strokes total; trip out of hole from 2967 ft; set back HWDP and drill collars; lay down BHA #1; prepare to run casing; rig up Weatherford; run 13-3/8: 68# J-55 casing to 2954 ft; float collar at 2912.3 ft; landed with 105k down wt; rig down 13-3/8” handling tools; rig up false table; make up 5” drill pipe cement stab in tool; add drill pipe centralizer 5 ft up. Currently running in hole with 5” drill pipe inner string at report time. CANRIG PERSONNEL ON BOARD Resch, Winslow___ DAILY COST $2427.00 REPORT BY Larry Resch Cook Inlet Natural Gas Cannery Loop/ Sterling C DAILY WELLSITE REPORT CLU Storage 1 REPORT FOR John Nicholson, Mike Grubb DATE Nov 29, 2011 DEPTH 2967' PRESENT OPERATION Nipple up BOP's TIME 2359 hrs YESTERDAY 2967' 24 HOUR FOOTAGE 0' CASING INFORMATION ___20" Conductor at 115'___ 13-3/8" @ 2954' SURVEY DATA DEPTH INCLINATION AZIMUTH VERTICAL DEPTH 2914' 55.68 242.79 2619.25' BIT INFORMATION INTERVAL CONDITION REASON NO. SIZE TYPE S/N JETS/ TFA IN OUT FOOTAGE HOURS T/B/C PULLED 1 16" HCC MX1 5194403 3x18,16cj/ 0.924 115' 2967' 2852' 16.9 Casing Pt DRILLING PARAMETERS HIGH LOW AVERAGE CURRENT AVG RATE OF PENETRATION @ @ FT/HR SURFACE TORQUE @ @ FT-LBS WEIGHT ON BIT @ @ KLBS ROTARY RPM @ @ RPM PUMP PRESSURE @ @ PSI DRILLING MUD REPORT DEPTH 2967/ 2649 MW 9.3 VIS 47 PV 12 YP 13 GELS 5/8/11 FL 8.6 CL- 700 FC SOL 6 SD 5 OIL /94 MBT 22.5 pH 9.2 Ca+ 160 KCl MWD SUMMARY INTERVAL TO TOOLS No tools in hole this period. GAS SUMMARY (units) HIGH LOW AVERAGE DITCH GAS @ @ TRIP GAS 2u CUTTING GAS @ @ WIPER GAS n/a CHROMATOGRAPHY (ppm) SURVEY n/a METHANE (C-1) @ @ CONNECTION GAS HIGH n/a ETHANE (C-2) @ @ AVG n/a PROPANE (C-3) @ @ CURRENT n/a BUTANE (C-4) @ @ CURRENT BACKGROUND/AVG n/a PENTANE (C-5) @ @ HYDROCARBON SHOWS No new footage drilled this period. INTERVAL LITHOLOGY/REMARKS GAS DESCRIPTION LITHOLOGY PRESENT LITHOLOGY No new footage drilled this period. DAILY ACTIVITY SUMMARY November 29, 2011 Continue trip in hole with 5” drill pipe inner string to 2912 ft; rig up flow line from 13-3/8” stump; sting into float with inner string; rig up head pin and cement lines; break circulation and stage up to 5 bpm at 330 psi; circulate bottoms up; cement 13-3/8” casing through inner string per CINGSA/ Schlumberger cement procedure; cement in place at 0854 hrs; circulate and condition; CINGSA Safety Shutdown for drug dog search of location and vehicles; trip out of hole with cement sting in tool; lay down BHA and tools; service top drive, replace saver sub and gripper dies while waiting on cement; nipple down diverter system while cleaning pits; pick up on 13-3/8” casing at 125k; remove base plate, then slack off; pick up annular and diverter spool; rough cut 13-3/8” casing and lay down cutoff joint; set stack down and clean drip pan. Nipple up operations continue at report time. CANRIG PERSONNEL ON BOARD Resch, Winslow___ DAILY COST $2427.00 REPORT BY Larry Resch Cook Inlet Natural Gas Cannery Loop/ Sterling C DAILY WELLSITE REPORT CLU Storage 1 REPORT FOR John Nicholson, Mike Grubb DATE Nov 30, 2011 DEPTH 2967' PRESENT OPERATION Prepare to pick up BHA #2 TIME 2359 hrs YESTERDAY 2967' 24 HOUR FOOTAGE 0' CASING INFORMATION ___13-3/8" @ 2954' SURVEY DATA DEPTH INCLINATION AZIMUTH VERTICAL DEPTH 2914' 55.68 242.79 2619.25' BIT INFORMATION INTERVAL CONDITION REASON NO. SIZE TYPE S/N JETS/ TFA IN OUT FOOTAGE HOURS T/B/C PULLED 2 12-1/4" HCC QD505XX 7022287 8x12/ 0.8797 2967' 0' 0 DRILLING PARAMETERS HIGH LOW AVERAGE CURRENT AVG RATE OF PENETRATION @ @ FT/HR SURFACE TORQUE @ @ FT-LBS WEIGHT ON BIT @ @ KLBS ROTARY RPM @ @ RPM PUMP PRESSURE @ @ PSI DRILLING MUD REPORT DEPTH 2967/ 2649 MW 9.3 VIS 47 PV 12 YP 13 GELS 5/8/11 FL 8.6 CL- 700 FC 2 SOL 6 SD 0.5 OIL /94 MBT 22.5 pH 9.2 Ca+ 160 KCl MWD SUMMARY INTERVAL 2967' TO Current TOOLS Steering Head, Ontrac, BCMP GAS SUMMARY (units) HIGH LOW AVERAGE DITCH GAS @ @ TRIP GAS n/a CUTTING GAS @ @ WIPER GAS n/a CHROMATOGRAPHY (ppm) SURVEY n/a METHANE (C-1) @ @ CONNECTION GAS HIGH n/a ETHANE (C-2) @ @ AVG n/a PROPANE (C-3) @ @ CURRENT n/a BUTANE (C-4) @ @ CURRENT BACKGROUND/AVG n/a PENTANE (C-5) @ @ HYDROCARBON SHOWS No new footage drilled this period. INTERVAL LITHOLOGY/REMARKS GAS DESCRIPTION LITHOLOGY PRESENT LITHOLOGY No new footage drilled this period. DAILY ACTIVITY SUMMARY November 30, 2011 Continue nipple down/ nipple up operations; cut 20” conductor; cut and dress 13-3/8” casing—24.55 ft total removed; take on FloPro mud while cleaning pits; complete nipple up of BOP’s; clean screens in mud pump #1 and #2; fill hole and stack with mud; function test BOPE; set test plug and test BOP’s 250 psi low/ 2500 psi high; CANRIG records and charts pressure test of 13-3/8” casing at 2000 psi for 30 minutes; blow down top drive, kill and choke line. Currently preparing to pick up BHA #2 at report time. CANRIG PERSONNEL ON BOARD Resch, Winslow + 2 SC's___ DAILY COST $2947.00 REPORT BY Larry Resch Cook Inlet Natural Gas Cannery Loop/ Sterling C DAILY WELLSITE REPORT CLU Storage 1 REPORT FOR John Nicholson, Mike Grubb DATE Dec 01, 2011 DEPTH 4582' PRESENT OPERATION Drilling Ahead TIME 2359 hrs YESTERDAY 2967' 24 HOUR FOOTAGE 1615' CASING INFORMATION 13-3/8" @ 2956' SURVEY DATA DEPTH INCLINATION AZIMUTH VERTICAL DEPTH 3040' 56.42 243.89 2689.62' 3422' 58.41 242.40 2892.00' 3805' 58.48 242.40 3092.89' 4187' 58.45 241.82 3292.60' 4568' 58.44 242.26 3491.55' BIT INFORMATION INTERVAL CONDITION REASON NO. SIZE TYPE S/N JETS/ TFA IN OUT FOOTAGE HOURS T/B/C PULLED 2 12-1/4" HCC QD505XX 7022287 8x12/ 0.8797 2967' 1615' 10.0 DRILLING PARAMETERS HIGH LOW AVERAGE CURRENT AVG RATE OF PENETRATION 925.9 @ 2967' 10.4 @ 3756' 187.4 111.7 FT/HR SURFACE TORQUE 10103 @ 3911' 3846 @ 2999' 6838.3 7587 FT-LBS WEIGHT ON BIT 16 @ 3475' 0 @ 2993' 10.9 13.2 KLBS ROTARY RPM 132 @ 3161' 59 @ 2985' 124.8 131 RPM PUMP PRESSURE 1638 @ 4385' 254 @ 2986' 1405.7 1575 PSI DRILLING MUD REPORT DEPTH 4554/ 3488 MW 9.2 VIS 47 PV 10 YP 20 GELS 11/12/17 FL 8.4 CL- 17k FC 2 SOL 6 SD 0.1 OIL 2/92 MBT 8 pH 9.2 Ca+ 320 KCl MWD SUMMARY INTERVAL 2967' TO Current TOOLS Steering head, Ontrac, BCMP GAS SUMMARY (units) HIGH LOW AVERAGE DITCH GAS 67 @ 3767' 0 @ 22.5 TRIP GAS 0 CUTTING GAS @ @ WIPER GAS n/a CHROMATOGRAPHY (ppm) SURVEY 0 METHANE (C-1) 13290 @ 3767' 145 @ 2993' 4830.2 CONNECTION GAS HIGH 0 ETHANE (C-2) 0 @ @ AVG 0 PROPANE (C-3) 0 @ @ CURRENT 0 BUTANE (C-4) 0 @ @ CURRENT BACKGROUND/AVG 35u PENTANE (C-5) 0 @ @ HYDROCARBON SHOWS None INTERVAL LITHOLOGY/REMARKS GAS DESCRIPTION LITHOLOGY Sterling Sands PRESENT LITHOLOGY Sand 60%, Siltstone 20%, Claystone 20% DAILY ACTIVITY SUMMARY December 1, 2011 Pick up BHA #2 (12-1/4” bit) and HWDP; Trip in hole to 2794 ft; wash and rotate from 2794 ft to 2896 ft; tag top of cement at 2896 ft; drill shoe track from top of cement at 2896 ft to float collar at 2912 ft and shoe at 2956 ft with firm cement below shoe and in returns; drill out 20 foot of new hole to 2987 ft; displace well and pits to 9.0 ppg Flo Pro mud---420 bbls, 5600 strokes; circulate until even mud weight at 9.0 ppg; perform FIT at 2642 ft, 9.0 ppg test fluid at 823+ psi...15.0 ppg EMW; drill ahead from 2986 ft to 3943 ft; pump 32 bbl high viscosity sweep around; drill ahead from 3943 ft to 4583 ft at report time with no excess drag and no hole problems. CANRIG PERSONNEL ON BOARD Resch, Winslow + 2 SC's___ DAILY COST $2947.00 REPORT BY Larry Resch Cook Inlet Natural Gas Cannery Loop/ Sterling C DAILY WELLSITE REPORT CLU Storage 1 REPORT FOR Steve Ratcliff, Mike Grubb DATE Dec 02, 2011 DEPTH 5955' PRESENT OPERATION Drilling Ahead TIME 2359 hrs YESTERDAY 4582' 24 HOUR FOOTAGE 1373' CASING INFORMATION 13-3/8" @ 2956' SURVEY DATA DEPTH INCLINATION AZIMUTH VERTICAL DEPTH 4663' 58.44 242.26 3541.26' 4951' 58.51 242.96 3691.88' 5334' 58.11 243.11 3892.21' 5620' 58.11 243.22 4043.17' 5908' 58.02 249.63 4195.30' BIT INFORMATION INTERVAL CONDITION REASON NO. SIZE TYPE S/N JETS/ TFA IN OUT FOOTAGE HOURS T/B/C PULLED 2 12-1/4" HCC QD505XX 7022287 8x12/ 08797 2967' 2988' 19.5 DRILLING PARAMETERS HIGH LOW AVERAGE CURRENT AVG RATE OF PENETRATION 391.0 @ 5297' 10.0 @ 5760' 169.5 149.3 FT/HR SURFACE TORQUE 13424 @ 5229' 6060 @ 4711' 9873.6 12925 FT-LBS WEIGHT ON BIT 17 @ 5654' 0 @ 4820' 10.3 12.3 KLBS ROTARY RPM 134 @ 5311' 106 @ 5186' 129.9 129 RPM PUMP PRESSURE 1865 @ 5870' 781 @ 4614' 1689.0 1763 PSI DRILLING MUD REPORT DEPTH 5951/ 4218 MW 9.2 VIS 47 PV 11 YP 18 GELS 9/12/17 FL 7.2 CL- 29k FC 1 SOL 6 SD 0.25 OIL 3/91 MBT 8 pH 9.2 Ca+ 280 KCl MWD SUMMARY INTERVAL 2967' TO Current TOOLS Steering head, Ontrac, BCMP GAS SUMMARY (units) HIGH LOW AVERAGE DITCH GAS 359 @ 5841' 3 @ 4938' 70.4 TRIP GAS n/a CUTTING GAS @ @ WIPER GAS 29u CHROMATOGRAPHY (ppm) SURVEY 0 METHANE (C-1) 80582 @ 5841' 781 @ 4938' 15791.2 CONNECTION GAS HIGH 0 ETHANE (C-2) 74 @ 5817' 0 @ 10.1 AVG 0 PROPANE (C-3) 0 @ @ CURRENT 0 BUTANE (C-4) 0 @ @ CURRENT BACKGROUND/AVG 35-50u PENTANE (C-5) 0 @ @ HYDROCARBON SHOWS None INTERVAL LITHOLOGY/REMARKS GAS DESCRIPTION LITHOLOGY Sterling PRESENT LITHOLOGY 40% Sand, 20% Sandstone, 40% Claystone DAILY ACTIVITY SUMMARY December 2, 2011 Drill ahead from 4583 ft to 5281 ft at 14k wob, 130 rpm, 10k torque, 600 gpm, 1650 psi, p/u 140k, s/o 80k, rot 100k; circulate bottoms up 8600 strokes at 5281 ft; wipe hole/ back ream from 5281 ft to shoe at 2956 ft at 100 rpm, 10k torque, 350 gpm, 650 psi; circulate bottoms up until hole clean at 610 gpm, 1500 psi; service top drive, blocks, crown; install safety wires on bolts; change out shaker screens to 200’s, blow down top drive; trip back to bottom from 2956 ft to 5185 ft; kelly up –wash and rotate to 5281 ft; drill ahead from 5281 ft at 15k wob, 130 rpm, 10k torque, 609 gpm, 1720 psi, p/u 155k, s/o 105k, rot 110k. Currently drilling ahead to 5955 ft at report time. CANRIG PERSONNEL ON BOARD Resch, Winslow + 2 SC's___ DAILY COST $2947.00 REPORT BY Larry Resch Cook Inlet Natural Gas Cannery Loop/ Sterling C DAILY WELLSITE REPORT CLU Storage 1 REPORT FOR Steve Ratcliff, Mike Grubb DATE Dec. 03, 2011 DEPTH 7573' PRESENT OPERATION Back ream out of hole TIME 2359 hrs YESTERDAY 5955' 24 HOUR FOOTAGE 1618' CASING INFORMATION __13-3/8" @ 2956' SURVEY DATA DEPTH INCLINATION AZIMUTH VERTICAL DEPTH 6196' 55.99 264.59 4354.73' 6484' 57.75 284.47 4513.09' 6866' 63.01 306.97 4704.15' 7248' 71.12 324.53 4853.30' 7532' 79.64 334.19 4926.78' BIT INFORMATION INTERVAL CONDITION REASON NO. SIZE TYPE S/N JETS/ TFA IN OUT FOOTAGE HOURS T/B/C PULLED 2 12-1/4" HCC QD505XX 7022287 8x12/ 0.8797 2967' 4606' 34.7 DRILLING PARAMETERS HIGH LOW AVERAGE CURRENT AVG RATE OF PENETRATION 333.0 @ 6578' 7.9 @ 6049' 124.6 59.2 FT/HR SURFACE TORQUE 20142 @ 7532' 101 @ 7560' 14891.3 12757 FT-LBS WEIGHT ON BIT 25 @ 7052' 1 @ 6144' 11.1 13.5 KLBS ROTARY RPM 131 @ 6044' 100 @ 7569' 121.5 101 RPM PUMP PRESSURE 2080 @ 7300' 598 @ 7411' 1897.1 1726 PSI DRILLING MUD REPORT DEPTH 7407/ 4970 MW 9.3 VIS 47 PV 12 YP 19 GELS 10/13/17 FL 6.7 CL- 32k FC 1 SOL 7 SD 0.25 OIL 4/89 MBT 10 pH 9.2 Ca+ 320 KCl MWD SUMMARY INTERVAL 2967' TO 7573' TOOLS Steering head, Ontrac, BCMP GAS SUMMARY (units) HIGH LOW AVERAGE DITCH GAS 975 @ 7503 0 @ 6960' 66.7 TRIP GAS n/a CUTTING GAS @ @ WIPER GAS n/a CHROMATOGRAPHY (ppm) SURVEY 0 METHANE (C-1) 175401 @ 7501 124 @ 6960' 12467.5 CONNECTION GAS HIGH 0 ETHANE (C-2) 319 @ 7501 0 @ 18.8 AVG 0 PROPANE (C-3) 0 @ @ CURRENT 0 BUTANE (C-4) 0 @ @ CURRENT BACKGROUND/AVG 150u PENTANE (C-5) 0 @ @ HYDROCARBON SHOWS None INTERVAL LITHOLOGY/REMARKS GAS DESCRIPTION LITHOLOGY Sterling PRESENT LITHOLOGY Sand, Claystone, Coal DAILY ACTIVITY SUMMARY December 3, 2011 Drill ahead from 5955 ft to 6813 ft at 17k wob, 13-16k torque, 600 gpm, 1900 psi, p/u 165k, s/o 90k, rot wt 122k; pump 40 bbl high viscosity sweep at 6813 ft, 625 gpm, 2000 psi; 20% increase in cuttings as sweep returns, drill ahead from 6813 ft to 7100 ft; service top drive, blocks, crown; troubleshoot RigWatch computer freeze up; drill ahead from 7100 ft to casing point at 7573 ft; final parameters 6/12k wob, 120 rpm, 15-23k torque, 623 gpm, 1900 psi, p/u 175k, s/o 93k, rot wt 125k; spot 70 bbl lcm pill at 2476 stks; back ream out of hole while circulating bottoms up from 7573 ft to 7388 ft at report time. CANRIG PERSONNEL ON BOARD Resch, Winslow, Lundy + 2 SC's__ DAILY COST $2947.00 REPORT BY Larry Resch Pa y r o l l P e r i o d F r o m D a t e : C o m - D i v - F u n c : U n i t # : J o b # : AF E # Na m e : Na m e : ### Sa f e t y ### Cy l i n d e r P r e s s u r e ( P r e v i o u s D a y ) Na m e : Cy l i n d e r P r e s s u r e ( T o d a y ) Da i l y U s a g e Em p l o y e e S i g n a t u r e : Em p l o y e e S i g n a t u r e : Em p l o y e e S i g n a t u r e : Op e r a t o r ' s R e p r e s e n t a t i v e ' s Em p l o y e e S i g n a t u r e : Ac c e p t a n c e o f S e r v i c e s a n d C h a r g e s Em p l o y e e S i g n a t u r e : 0 72103520001 RI G W A T C H DW S & P W S Ad d ' l R W W o r k s t a t i o n DM L O n e M a n TO T A L D M L C H A R G E S 2, 2 1 9 . 0 0 pa y i n g 1 2 h r s f o r S C s a n d p e r d i e m / b o n u s 0 Re s c h O T f o r t r u c k r e p a i r 0 TO T A L C H A R G E S F O R 12 / 0 5 / 1 1 2727.00 sa m l e c a t c h e r s t o s t a n d b y , C a n r i g t o c o n t i n u e 0 000 Co m m e n t s Ex t r a H o u r s 0 Ba s e 1300 Qt y Qt y Qt y 0 0 50 0 0 0 0 0 0 0 Da i l y H y d r o g e n U s a g e (Required!) 1350 TH I R D P A R T Y P E R S O N N E L 0 0 Ho l i d a y 0 0 0 0 0 0 Al a s k a 1 1 0 Oi l B a s e B o n u s 0 Sa f e t y M e e t i n g 1 1 0 0 0 0 Ov e r t i m e Pe r D i e m 1 1 0 0 0 0 Ba s e 12 12 Qt y Qt y Qt y 0 0 0 0 SA M P L E C A T C H E R S my W e l l s . c o m 1 27 9 J. R o s e n b l u m e D. H i l l i g e i s t 0 0 0 To d a y ' s E q u i p m e n t A d d i t i o n s & D e l e t i o n s 27 9 TO T A L RI G W A T C H C H A R G E S 508.00 0 0 Ho l i d a y S C ( / m a n / d a y ) 0 0 0 0 Ho l i d a y L o g g e r s ( / m a n / d a y ) 0 0 0 0 0 Ho l i d a y Sa f e t y M e e t i n g s ( / m a n / h r ) 0 0 0 0 Sa f e t y M e e t i n g 1. 0 0 1. 0 0 Sh i f t O v e r t i m e ( / m a n / h r ) 0 0 Co m m u t e Oi l B a s e d M u d ( / m a n / d a y ) 0 0 0 0 0 Se r v i c e C a l l ( / m a n / d a y ) 0 Ri g D o w n Is o T u b e S a m p l i n g 975 0 0 0 St a n d b y H2 S D e t e c t o r ( I n L i n e ) 0 0 Oi l B a s e B o n u s RI G W A T C H E x p l o r e r 0 0 0 0 0 Ad d ' l P i t P r o b e s 0 RW B o n u s QG M 0 30 0 Ca m p W i r e l e s s 0 0 Ad d i t i o n a l H r s . 2 SC , S t a n d b y ( / m a n / d a y ) 2 15 0 0 Pe r d i e m 1 1 Sa m p l e C a t c h e r s ( / m a n / d a y ) 0 0 Ri g W i r e l e s s 0 0 Dr i l l S m a r t A u t o D r i l l e r 0 0 0 2 33 Pe r s o n n e l M o b i l i z a t i o n Of f s h o r e Al a s k a 1 1 372 70 Ri g U p / R i g D o w n 1 0 DM L S t a n d b y w / 2 L o g g e r s 11 3 8 66 J. L u n d y Ba s e 12 12 Qt y Qt y L. R e s c h Qt y DM L w / 2 L o g g e r s + 2 s c ' s 16 4 0 1 0 21 6 0 0 372 70 1 0 DM L w / 2 L o g g e r s 975 DM L S e r v i c e s Qt y Ra t e Qty Am o u n t RI G W A T C H Se r v i c e s RI G W A T C H R i g U p / D o w n Rate 16 4 0 Ri g : NA B O R S 1 0 5 A C ce m e n t u p , N i p d o w n MA N P O W E R SE R V I C E S A N D C H A R G E S LO G G E R S Amount ML057 We l l N a m e : CL U S T O R A G E 1 Pr o p o s e d O p e r a t i o n s N e x t 2 4 H r s . : co n t i n u e c s g o p s 6652328 Fi e l d / A r e a : CA N N E R Y L O O P S T O R A G E P R O J E C T 24 H o u r F o o t a g e : 0 E s t . R e m a i n i n g D a y s : 19 December 5, 2011 Co n t a c t : 0 Pr e v i o u s D e p t h : 75 7 3 Da y # : 11 280-100-610 Op e r a t o r : CI N G S A Da i l y F i e l d J o b T i c k e t 12 / 0 4 / 1 1 t o 1 2 / 1 7 / 1 1 Cu r r e n t O p e r a t i o n : ru n 9 5 / 8 " c s g De p t h : 75 7 3 Cook Inlet Natural Gas Cannery Loop/ Sterling C DAILY WELLSITE REPORT CLU Storage 1 REPORT FOR Steve Ratcliff, Mike Grubb DATE Dec. 5, 2011 DEPTH 7573' PRESENT OPERATION Land 9-5/8" casing TIME 2359 hrs YESTERDAY 7573' 24 HOUR FOOTAGE 0' CASING INFORMATION __13-3/8" @ 2956'___ 9-5/8" @ -- SURVEY DATA DEPTH INCLINATION AZIMUTH VERTICAL DEPTH 7532' 79.64 334.19 4926.78' p. 7573' 79.64 334.19 p. 4934.11' BIT INFORMATION INTERVAL CONDITION REASON NO. SIZE TYPE S/N JETS/ TFA IN OUT FOOTAGE HOURS T/B/C PULLED 2 12-1/4" HCC QD505XX 7022287 8x12/ 0.8797 2967' 7573' 4606' 34.7 1-1-WT-A-X-I-NO-TD Csg Pt. DRILLING PARAMETERS HIGH LOW AVERAGE CURRENT AVG RATE OF PENETRATION @ @ FT/HR SURFACE TORQUE @ @ FT-LBS WEIGHT ON BIT @ @ KLBS ROTARY RPM @ @ RPM PUMP PRESSURE @ @ PSI DRILLING MUD REPORT DEPTH 7573/ 4934 MW 9.3 VIS 49 PV 18 YP 18 GELS 10/13/16 FL 6.6 CL- 31.5k FC 1 SOL 7 SD 0.25 OIL 4/89 MBT 10 pH 9.2 Ca+ 280 KCl MWD SUMMARY INTERVAL TO TOOLS No tools in hole this period. GAS SUMMARY (units) HIGH LOW AVERAGE DITCH GAS @ @ TRIP GAS n/a CUTTING GAS @ @ WIPER GAS n/a CHROMATOGRAPHY (ppm) SURVEY n/a METHANE (C-1) @ @ CONNECTION GAS HIGH n/a ETHANE (C-2) @ @ AVG n/a PROPANE (C-3) @ @ CURRENT n/a BUTANE (C-4) @ @ CURRENT BACKGROUND/AVG (not circulating) PENTANE (C-5) @ @ HYDROCARBON SHOWS No tools in hole this period. INTERVAL LITHOLOGY/REMARKS GAS DESCRIPTION LITHOLOGY Sterling PRESENT LITHOLOGY No tools in hole this period. DAILY ACTIVITY SUMMARY December 5, 2011 Rig up Weatherford and prepare to run 9-5/8” 40# L-80 BTC casing; run in hole to just above13-3/8” casing shoe to 2934 ft; circulate bottoms up at 350 gpm, 300 psi, 3000 stks; continue running 9-5/8” casing from 2934 ft to 3544 ft at p/u 135k, s/o 110k, 2-1/2 BPH losses at end of tour; continue running 9-5/8” casing from 3544 ft to 7465 ft at 255k p/u, 139k s/o; hole takes weight from casing; pull 350k to break—work pipe; free up point using fill up tool; pump 40-50 spm at 450-860 psi; wash down joint #’s 184 and 185; make up landing joint and hanger; land casing 185 joints total. CANRIG records 86 units of gas while running casing (bottoms up is not to surface yet); total displacement 94 bbls observed (110 bbls calculated) for entire casing run. Currently rigging down casing equipment and fill up tool at report time. CANRIG PERSONNEL ON BOARD Resch, Lundy___ DAILY COST $2427.00 REPORT BY Larry Resch Cook Inlet Natural Gas Cannery Loop/ Sterling C DAILY WELLSITE REPORT CLU Storage 1 REPORT FOR Steve Ratcliff, Mike Grubb DATE December 6, 2011 DEPTH 7573' PRESENT OPERATION Prepare to pick up BHA #3 TIME 2359 hrs YESTERDAY 7573' 24 HOUR FOOTAGE 0' CASING INFORMATION ___9-5/8" @ 7564' SURVEY DATA DEPTH INCLINATION AZIMUTH VERTICAL DEPTH 7532' 79.64 334.19 4926.78' p. 7573' 79.64 334.19 p. 4934.11' BIT INFORMATION INTERVAL CONDITION REASON NO. SIZE TYPE S/N JETS/ TFA IN OUT FOOTAGE HOURS T/B/C PULLED DRILLING PARAMETERS HIGH LOW AVERAGE CURRENT AVG RATE OF PENETRATION @ @ FT/HR SURFACE TORQUE @ @ FT-LBS WEIGHT ON BIT @ @ KLBS ROTARY RPM @ @ RPM PUMP PRESSURE @ @ PSI DRILLING MUD REPORT DEPTH 7573/ 4934 MW 9.3 VIS 49 PV 14 YP 14 GELS 8/10/13 FL 6.6 CL- 29k FC 1 SOL 7 SD 0.25 OIL 4/89 MBT 10 pH 9.1 Ca+ 320 KCl MWD SUMMARY INTERVAL TO TOOLS No tools in hole this period. GAS SUMMARY (units) HIGH LOW AVERAGE DITCH GAS @ @ TRIP GAS 186 u CUTTING GAS @ @ WIPER GAS n/a CHROMATOGRAPHY (ppm) SURVEY n/a METHANE (C-1) @ @ CONNECTION GAS HIGH n/a ETHANE (C-2) @ @ AVG n/a PROPANE (C-3) @ @ CURRENT n/a BUTANE (C-4) @ @ CURRENT BACKGROUND/AVG not circulating PENTANE (C-5) @ @ HYDROCARBON SHOWS No new footage drilled this period. INTERVAL LITHOLOGY/REMARKS GAS DESCRIPTION LITHOLOGY Sterling PRESENT LITHOLOGY No new footage drilled this period. DAILY ACTIVITY SUMMARY December 6, 2011 Rig down Weatherford casing equipment; rig up Schlumberger cement head; circulate bottoms up; CANRIG records 186 units maximum gas observed while circulating; pressure test lines at 1000 psi low, 4000 psi high; pump cement per CINGSA/ SLB procedure; cement to surface on first and second stage; cement in place at 1100 hours; blow down/ rig down cement lines; flush stack, kill and choke ports, drip pan and flow line; function all rams and flush; flush from outer annulus to clear hanger ports; set hanger; lay down 450 ton elevators, casing running tool an cement head; change pipe rams to 5x7 variable; open, clean and inspect blind rams; rig down stabbing board; service top drive, change out bales; load pipe shed with 42 joints 5” drill pipe;; test installed rams/ BOP’s; pick up rig tongs. Currently preparing to make up BHA #3 at report time. CANRIG PERSONNEL ON BOARD Resch, Lundy___ DAILY COST $2427.00 REPORT BY Larry Resch Cook Inlet Natural Gas Cannery Loop/ Sterling C DAILY WELLSITE REPORT CLU Storage 1 REPORT FOR Steve Ratcliff, Mike Grubb DATE Dec 07, 2011 DEPTH 7680' PRESENT OPERATION Drilling Ahead TIME 2359 hrs YESTERDAY 7573' 24 HOUR FOOTAGE 107' CASING INFORMATION ___9-5/8" @ 7563' SURVEY DATA DEPTH INCLINATION AZIMUTH VERTICAL DEPTH 7532' 79.64 334.19 4926.78' BIT INFORMATION INTERVAL CONDITION REASON NO. SIZE TYPE S/N JETS/ TFA IN OUT FOOTAGE HOURS T/B/C PULLED 3 8-1/2" HCC HCR503ZX 7114328 3x13,3x14/ 0.8399 7573' 107' 2.3 DRILLING PARAMETERS HIGH LOW AVERAGE CURRENT AVG RATE OF PENETRATION 87.6 @ 7632' 11.6 @ 7579' 53.9 44. FT/HR SURFACE TORQUE 13994 @ 7579' 10843 @ 7680' 12445.2 10843 FT-LBS WEIGHT ON BIT 15 @ 7586' 1 @ 7576' 8.2 12.4 KLBS ROTARY RPM 62 @ 7574' 59 @ 7593' 61.9 61 RPM PUMP PRESSURE 1614 @ 7575' 1173 @ 7585' 1429.4 1403 PSI DRILLING MUD REPORT DEPTH 7680/ 4953 MW 904 VIS 52 PV 16 YP 13 GELS 6/9/12 FL 7.6 CL- 28.5k FC 1 SOL 9 SD 0.25 OIL 4/87 MBT 10 pH 9.3 Ca+ 320 KCl MWD SUMMARY INTERVAL 7573' TO Current TOOLS Motor steerable 1.0 degree, OnTrak, BCMP, MagTrak GAS SUMMARY (units) HIGH LOW AVERAGE DITCH GAS 84 (trap test) @ 7671' 1 @ 7575' 5.3 TRIP GAS 34u CUTTING GAS @ @ WIPER GAS n/a CHROMATOGRAPHY (ppm) SURVEY 0 METHANE (C-1) 14204 @ 7671' 187 @ 7575' 870.9 CONNECTION GAS HIGH 0 ETHANE (C-2) 1 @ 7598.00000 @ AVG 0 PROPANE (C-3) 0 @ @ CURRENT 0 BUTANE (C-4) 0 @ @ CURRENT BACKGROUND/AVG 1-5u PENTANE (C-5) 0 @ @ HYDROCARBON SHOWS None INTERVAL LITHOLOGY/REMARKS GAS DESCRIPTION LITHOLOGY Sterling PRESENT LITHOLOGY sand 80%, siltstone 20% DAILY ACTIVITY SUMMARY December 7, 2011 Pick up and make up 8-1/2” bit and BHA #3; make up MWD assembly and load sources; pick up 8 stands HWDP; cut 65 ft of drill line and slip same; repaired broken safety wire on top drive; pick up 51 joints 5” drill pipe to2608 ft; fill drill pipe at 400 gpm, 1100 psi; continue to trip in hole from 2608 ft to 3278 ft; wash and rotate down from 3278 ft to tag at 3373 ft; drill out DV collar and wash to 3469 ft; pressure test 9- 5/8” casing shoe to 2500 psi for 30 minutes; CANRIG records and charts test; bleed off and blow down kill line; trip in hole on elevators from 3469 ft to 7476 ft chasing junk to bottom from 3800 ft; drill shoe track and cement from 7482 ft to 7569 ft; drill 20 ft new hole from 7573 ft to 7593 ft; pull into shoe and circulate bottoms up at 350 gpm, 1200 psi. Perform FIT/ LOT with 9.4 ppg mud to 1418 psi, results = 14.9 ppg EMQ; blow down all surface equipment; drill ahead from 7593 ft to 7680 ft at 60 rpm, 12k torque, 370 gpm, 1280 psi, p/u 160k, s/o 92k, rot wt 115k. Currently drilling ahead from 7680 ft at report time. CANRIG PERSONNEL ON BOARD Resch, Winkelman +2 SC's___ DAILY COST $2947.00 REPORT BY Larry Resch Cook Inlet Natural Gas Cannery Loop/ Sterling C DAILY WELLSITE REPORT CLU Storage 1 REPORT FOR Steve/ Stephen Ratcliff DATE Dec 08, 2011 DEPTH 8638' PRESENT OPERATION Trouble shoot top drive TIME 2359 hrs YESTERDAY 7680' 24 HOUR FOOTAGE 958' CASING INFORMATION ___9-5/8" @ 7563' SURVEY DATA DEPTH INCLINATION AZIMUTH VERTICAL DEPTH 7717' 81.14 335.05 4957.30' 7909' 82.48 334.91 4986.06' 8100' 84.96 335.77 5005.18' 8290' 83.87 335.56 5022.51' 8483' 83.35 335.94 5044.02' BIT INFORMATION INTERVAL CONDITION REASON NO. SIZE TYPE S/N JETS/ TFA IN OUT FOOTAGE HOURS T/B/C PULLED 3 8-1/2" HCC HCR503ZX 7114328 3x13,3x14/ 0.8399 7573' 1010' 15.8 DRILLING PARAMETERS HIGH LOW AVERAGE CURRENT AVG RATE OF PENETRATION 527.9 @ 7971' 18.9 @ 8543' 75.2 66.5 FT/HR SURFACE TORQUE 14223 @ 8351' 157 @ 8008' 10365.6 10131 FT-LBS WEIGHT ON BIT 96 @ 7881' 1 @ 8543' 12.7 11.4 KLBS ROTARY RPM 102 @ 8293' 0 @ Slide 76.0 63 RPM PUMP PRESSURE 1918 @ 8227' 1305 @ 7681' 1612.0 1737 PSI DRILLING MUD REPORT DEPTH 8583/ 5062 MW 9.5 VIS 60 PV 19 YP 20 GELS 12/21/24 FL 5.6 CL- 31.5k FC 1 SOL 10 SD 0.25 OIL 4/86 MBT 11 pH 9.1 Ca+ 320 KCl MWD SUMMARY INTERVAL 7573' TO Current TOOLS Motor steerable 1.0 degree, OnTrak, BCMP, MagTrak GAS SUMMARY (units) HIGH LOW AVERAGE DITCH GAS 287 @ 8623' 0 @ 62.4 TRIP GAS n/a CUTTING GAS @ @ WIPER GAS n/a CHROMATOGRAPHY (ppm) SURVEY 0 METHANE (C-1) 55164 @ 8622' 11 @ 7790' 12209.1 CONNECTION GAS HIGH 0 ETHANE (C-2) 70 @ 7857' 0 @ AVG 0 PROPANE (C-3) 0 @ @ CURRENT 0 BUTANE (C-4) 0 @ @ CURRENT BACKGROUND/AVG 12u PENTANE (C-5) 0 @ @ HYDROCARBON SHOWS None INTERVAL LITHOLOGY/REMARKS GAS DESCRIPTION LITHOLOGY Sterling PRESENT LITHOLOGY Sandstone 70%, Claystone 30% DAILY ACTIVITY SUMMARY December 8, 2011 Drill ahead rotating/ slide from 7680 ft to 8268 ft at 3-5k wob, 100 rpm, 12k torque, 405 gpm, 1650 psi, rop 80 ft/hr; drill ahead rotating/ slide from 8268 ft to 8638 ft at 3-11k wob, 100/ 60 rpm, 9-12k torque, 414 gpm, 1720 psi, rot wt 116k; back ream from 8638 ft to shoe at 7563 ft—60 rpm, 414 gpm; lost communication with top drive—handler, link tilt and back up wrench disabled. Currently troubleshooting top drive issues at report time. CANRIG PERSONNEL ON BOARD Resch, Winkelman + 2 SC"s___ DAILY COST $2947.00 REPORT BY Larry Resch Cook Inlet Natural Gas Cannery Loop/ Sterling C DAILY WELLSITE REPORT CLU Storage 1 REPORT FOR Steve/ Stephen Ratcliff DATE Dec 09, 2011 DEPTH 9266' PRESENT OPERATION Drilling Ahead TIME 2359 hrs YESTERDAY 8638' 24 HOUR FOOTAGE 628' CASING INFORMATION ___9-5/8" @7563' SURVEY DATA DEPTH INCLINATION AZIMUTH VERTICAL DEPTH 8483' 83.35 335.94 5043.97' 8579' 84.06 335.71 5054.49' 8675' 83.84 335.93 5064.61' 8771' 84.55 335.65 5074.32' 8867' 85.07 335.65 5083.00' BIT INFORMATION INTERVAL CONDITION REASON NO. SIZE TYPE S/N JETS/ TFA IN OUT FOOTAGE HOURS T/B/C PULLED 3 8-1/2" HCC HCR503ZX 7114328 3x13,3x14/ 0.8399 7573' 1693' 25.2 DRILLING PARAMETERS HIGH LOW AVERAGE CURRENT AVG RATE OF PENETRATION 140.7 @ 9226' 13.0 @ 9225' 69.8 21.9 FT/HR SURFACE TORQUE 15153 @ 9205' 0 @ Slide 10514.4 0 FT-LBS WEIGHT ON BIT 31 @ 9024' 0 @ Slide 11.1 6.0 KLBS ROTARY RPM 99 @ 8948' 4 @ 9130' 67.6 0 RPM PUMP PRESSURE 1959 @ 8640' 1542 @ 9258' 1796.5 1669 PSI DRILLING MUD REPORT DEPTH 9266/ 5118 MW 9.3 VIS 60 PV 15 YP 16 GELS 9/16/29 FL 5.2 CL- 31k FC 1 SOL 9 SD 0.1 OIL 4/87 MBT 10 pH 8.9 Ca+ 280 KCl MWD SUMMARY INTERVAL 7573' TO Current TOOLS Motor steerable 1.0 degree, OnTrak, BCMP, MagTrak GAS SUMMARY (units) HIGH LOW AVERAGE DITCH GAS 1163 @ 8692' 0 @ 135.5 TRIP GAS n/a CUTTING GAS @ @ WIPER GAS 16u CHROMATOGRAPHY (ppm) SURVEY 0 METHANE (C-1) 264020 @ 8692' 12 @ 8659' 29103.3 CONNECTION GAS HIGH 0 ETHANE (C-2) 335 @ 8692' 0 @ 43.4 AVG 0 PROPANE (C-3) 0 @ @ CURRENT 0 BUTANE (C-4) 0 @ @ CURRENT BACKGROUND/AVG 32u PENTANE (C-5) 0 @ @ HYDROCARBON SHOWS None INTERVAL LITHOLOGY/REMARKS GAS DESCRIPTION LITHOLOGY Sterling PRESENT LITHOLOGY 50" Siltstone, 50% Sandstone DAILY ACTIVITY SUMMARY December 9, 2011 Continue troubleshooting top drive communications; check all wiring connections, reboot computer; replace service loop cable; continue back reaming from 8159 ft to 7584 ft; spot 40 bbl LCM pill; let LCM pill soak while servicing top drive; trip in hole from 7488 ft to 8542 ft; pump 50 bbls LCM pill; wash down 8542 ft to 8638 ft; rotary drill ahead from 8638 ft to 8720 ft; circulate bottoms up at 8720 ft; CANRIG records 1165 units of gas; rotary drill/ slide from 8720 ft to 9266 ft at 65-100 rpm, 10-12k torque, 405 gpm, 1750 psi rot/ 1880 psi on bottom, control drill at 80 ft/hr; back ream each stand at 60 rpm. Currently drilling ahead from 9266 ft at report time CANRIG PERSONNEL ON BOARD Resch, Winkelman + 2 SC's DAILY COST $2947.00 REPORT BY Larry Resch Cook Inlet Natural Gas Cannery Loop/ Sterling C DAILY WELLSITE REPORT CLU Storage 1 REPORT FOR Steve, Stephen Ratcliff DATE Dec 10, 2011 DEPTH 9661' PRESENT OPERATION POOH at TD 9661' TIME 2359 hrs YESTERDAY 9266' 24 HOUR FOOTAGE 395' CASING INFORMATION ___9-5/8" @ 7563' SURVEY DATA DEPTH INCLINATION AZIMUTH VERTICAL DEPTH 8963' 85.87 335.64 5090.84' 9154' 84.68 335.57 5107.10' 9346' 83.25 335.70 5128.87' 9538' 82.92 335.42 5152.02' p. 9661' 85.85 335.74 p. 5164.43' BIT INFORMATION INTERVAL CONDITION REASON NO. SIZE TYPE S/N JETS/ TFA IN OUT FOOTAGE HOURS T/B/C PULLED 3 8-1/2" HCC HCR503ZX 7114328 3x13,3x14/ 0.8399 7573' 9661' 2088' 30.8 DRILLING PARAMETERS HIGH LOW AVERAGE CURRENT AVG RATE OF PENETRATION 125.1 @ 9319' 19.4 @ 9267' 73.8 115.0 FT/HR SURFACE TORQUE 15431 @ 9580' 285 @ 9406' 11445.4 FT-LBS WEIGHT ON BIT 22 @ 9309' 0 @ Slide 8.4 8.0 KLBS ROTARY RPM 81 @ 9283' 0 @ Slide 64.7 RPM PUMP PRESSURE 1942 @ 9634' 1561 @ 9327' 1727.6 PSI DRILLING MUD REPORT DEPTH 9661/ 5164 MW 9.3 VIS 60 PV 16 YP 16 GELS 10/16/28 FL 5.7 CL- 32.5k FC 1 SOL 9 SD 0.1 OIL 4/87 MBT 10 pH 8.7 Ca+ 240 KCl MWD SUMMARY INTERVAL 7573' TO 9661' TOOLS Motor steerable 1.0 degree, OnTrak, BCMP, MagTrak GAS SUMMARY (units) HIGH LOW AVERAGE DITCH GAS 657 @ 9424' 0 @ 104.0 TRIP GAS n/a CUTTING GAS @ @ WIPER GAS n/a CHROMATOGRAPHY (ppm) SURVEY 0 METHANE (C-1) 130669 @ 9424' 12 @ 9590' 21356.5 CONNECTION GAS HIGH 0 ETHANE (C-2) 154 @ 9424' 0 @ 34.4 AVG 0 PROPANE (C-3) 0 @ @ CURRENT 0 BUTANE (C-4) 0 @ @ CURRENT BACKGROUND/AVG 0 (circ over top of hole) PENTANE (C-5) 0 @ @ HYDROCARBON SHOWS None INTERVAL LITHOLOGY/REMARKS GAS DESCRIPTION LITHOLOGY Sterling PRESENT LITHOLOGY DAILY ACTIVITY SUMMARY December 10, 2011 Rotary drill/ slide from 9226 ft to 9308 ft at 8-10k wob, 80/ 0 rpm, 402 gpm, 1600 psi, p/u 155k, s/o 95k, rot wt 113k; circulate and condition while waiting on orders while working pipe from 9308 ft to 9300 ft; rotary drill/ slide from 9308 ft to TD at 9661 ft; circulate and condition hole; back ream from 9661 ft to 9500 ft with no tight spots; back ream from 9500 ft to shoe at 7563 ft at 400 gpm, 1800 psi, 55 rpm, 9k torque; work through tight spots at 9198 ft and 8437 ft plus additional minor spots; circulate and condition at 7563 ft; pump 70 bbl high viscosity sweep at 400 gpm, 1530 psi, 7800 strokes; pump 25 bbl dry job; blow down and service top drive, blocks and crown; continue trip out of hole from 7563 ft to 4619 ft at report time. CANRIG PERSONNEL ON BOARD Resch, Winkelman + 2 SC's__ DAILY COST __$2947.00 REPORT BY Larry Resch Cook Inlet Natural Gas Cannery Loop/ Sterling C DAILY WELLSITE REPORT CLU Storage 1 REPORT FOR Steve, Stephen Ratcliff DATE Dec. 11, 2011 DEPTH 9661' PRESENT OPERATION RIH with 7" liner TIME 2359 hrs YESTERDAY 9661' 24 HOUR FOOTAGE 0' CASING INFORMATION ____9-5/8" @ 7563' SURVEY DATA DEPTH INCLINATION AZIMUTH VERTICAL DEPTH 9538' 82.92 335.42 5152.02' p. 9661' 85.85 335.74 p. 5164.43' BIT INFORMATION INTERVAL CONDITION REASON NO. SIZE TYPE S/N JETS/ TFA IN OUT FOOTAGE HOURS T/B/C PULLED 3 8-1/2" HCC HCR503ZX 7114328 3x13,3x14/ 0.8399 7673' 9661' 2088' 30.8 TD DRILLING PARAMETERS HIGH LOW AVERAGE CURRENT AVG RATE OF PENETRATION @ @ FT/HR SURFACE TORQUE @ @ FT-LBS WEIGHT ON BIT @ @ KLBS ROTARY RPM @ @ RPM PUMP PRESSURE @ @ PSI DRILLING MUD REPORT DEPTH 9661/ 5164 MW 9.3 VIS 60 PV 16 YP 16 GELS 9/15/26 FL 5.6 CL- 32k FC 1 SOL 9 SD 0.1 OIL 4/87 MBT 10 pH 8.7 Ca+ 240 KCl MWD SUMMARY INTERVAL TO TOOLS No tools in hole this period. GAS SUMMARY (units) HIGH LOW AVERAGE DITCH GAS @ @ TRIP GAS n/a CUTTING GAS @ @ WIPER GAS n/a CHROMATOGRAPHY (ppm) SURVEY n/a METHANE (C-1) @ @ CONNECTION GAS HIGH n/a ETHANE (C-2) @ @ AVG n/a PROPANE (C-3) @ @ CURRENT n/a BUTANE (C-4) @ @ CURRENT BACKGROUND/AVG 0-5u while displacing PENTANE (C-5) @ @ HYDROCARBON SHOWS No new footage drilled this period. INTERVAL LITHOLOGY/REMARKS GAS DESCRIPTION LITHOLOGY PRESENT LITHOLOGY No new footage drilled this period. DAILY ACTIVITY SUMMARY December 11, 2011 Continue trip out of hole from 4619 ft to top of BHA; lay down 5” HWDP, jars, collars; download MWD data and lay down same, motor, bit; clear BHA from floor and pipe shed; rig up Baker CBL tools; run CBL on 9-5/8” casing from 7574 ft to 5000 ft; pull out of hole and rig down CBL logging tools; service rig—all hands working on snow and ice falling from derrick; prepare to run 7” liner; make up float assembly; fill pipe and check float; run in hole with 7” 26# VAM top liner, filling every five joints. Currently running in hole with 7” liner at 2286 ft at report time. CANRIG PERSONNEL ON BOARD Resch, Winkelman + 2 SC's DAILY COST __$2947.00 REPORT BY Larry Resch Cook Inlet Natural Gas Cannery Loop/ Sterling C DAILY WELLSITE REPORT CLU Storage 1 REPORT FOR Steve/ Stephen Ratcliff DATE Dec 12, 2011 DEPTH 9661' PRESENT OPERATION Casing Ops: POOH with 5" drill pipe TIME 2359 hrs YESTERDAY 9661' 24 HOUR FOOTAGE 0' CASING INFORMATION 9-5/8" @ 7563'____7" @ 9659' SURVEY DATA DEPTH INCLINATION AZIMUTH VERTICAL DEPTH p. 9661' 85.85 335.74 p. 5164.43' BIT INFORMATION INTERVAL CONDITION REASON NO. SIZE TYPE S/N JETS/ TFA IN OUT FOOTAGE HOURS T/B/C PULLED 3 8-1/2" HCC HCR503ZX 7114328 3x13,3x14/ 0.8399 7673' 9661' 2088' 30.8 1-1-CT-G-X-I-WT-TD TD DRILLING PARAMETERS HIGH LOW AVERAGE CURRENT AVG RATE OF PENETRATION @ @ FT/HR SURFACE TORQUE @ @ FT-LBS WEIGHT ON BIT @ @ KLBS ROTARY RPM @ @ RPM PUMP PRESSURE @ @ PSI DRILLING MUD REPORT DEPTH 9661/ 5164 MW 9.4 VIS 62 PV 17 YP 15 GELS 10/15/26 FL 5.0 CL- 32k FC 1 SOL 9 SD 0.1 OIL 4/87 MBT 10 pH 9.0 Ca+ 240 KCl MWD SUMMARY INTERVAL TO TOOLS No tools in hole this period. GAS SUMMARY (units) HIGH LOW AVERAGE DITCH GAS @ @ TRIP GAS 287u CUTTING GAS @ @ WIPER GAS n/a CHROMATOGRAPHY (ppm) SURVEY n/a METHANE (C-1) @ @ CONNECTION GAS HIGH n/a ETHANE (C-2) @ @ AVG n/a PROPANE (C-3) @ @ CURRENT n/a BUTANE (C-4) @ @ CURRENT BACKGROUND/AVG n/a PENTANE (C-5) @ @ HYDROCARBON SHOWS No new footage drilled this period. INTERVAL LITHOLOGY/REMARKS GAS DESCRIPTION LITHOLOGY PRESENT LITHOLOGY No new footage drilled this period. DAILY ACTIVITY SUMMARY December 12, 2011 Casing operations continue; make up 7” liner hanger/ packer, p/u 70k, s/o 65k; circulate 68 bbls tubing volume at 228 gpm, 316 psi; trip in hole with 7” liner on 5” drill pipe; break circulation and fill pipe every 10 stands; pick up a single, make up cement rotating head and lay down same; circulate bottoms up at 7520 ft; continue to run in hole with 7” liner on 5” drill pipe to 9620 ft at p/u 165k, s/o 80k; tag tight spot at 9 -5/8” shoe at 7563 ft; pump and work down from 9620 ft at 165 gpm, 690 psi, p/u 175k, s/o 85-40k; make up cement head and line; build volume- weight; circulate bottoms up 6800 strokes at 165 gpm, 800 psi; CANRIG records maximum 287 units of gas from bottoms up; pressure test cement lines at 1000 psi low/ 4800 psi high; cement 7” liner per CINGSA procedure; pump 35 bbl mud push; Schlumberger pumps 74 bbls FLEXSTONE 14.0 ppg cement; drop dart and chase with perf pill; bump plug at 2758 strokes and 2200 psi; cement in place at 1920 hours; free liner per Baker rep and pick up 30 ft; rig down cementers; circulate bottoms up at 334 gpm, 1080 psi; rig down/ lay down cement line and cement head; pump wiper ball down and circulate bottoms up at 378 gpm, 600 psi; pump dry job, blow down top drive and install wiper ball. Currently tripping out of hole to 6028 ft at report time. CANRIG PERSONNEL ON BOARD Resch, Rosenblume, Hillegeist__ DAILY COST $2427.00 REPORT BY Larry Resch Cook Inlet Natural Gas Cannery Loop/ Sterling C DAILY WELLSITE REPORT CLU Storage 1 REPORT FOR Steve, Stephen Ratcliff DATE Dec 13, 2011 DEPTH 9661' PRESENT OPERATION Completion Ops: Lay down 5" drill pipe TIME 2359 hrs YESTERDAY 9661' 24 HOUR FOOTAGE 0' CASING INFORMATION ___9-5/8" @ 7563'___7" @ 9659' SURVEY DATA DEPTH INCLINATION AZIMUTH VERTICAL DEPTH BIT INFORMATION INTERVAL CONDITION REASON NO. SIZE TYPE S/N JETS/ TFA IN OUT FOOTAGE HOURS T/B/C PULLED DRILLING PARAMETERS HIGH LOW AVERAGE CURRENT AVG RATE OF PENETRATION @ @ FT/HR SURFACE TORQUE @ @ FT-LBS WEIGHT ON BIT @ @ KLBS ROTARY RPM @ @ RPM PUMP PRESSURE @ @ PSI DRILLING MUD REPORT DEPTH 9661/ 5164 MW 8.6 VIS 27 PV 1 YP 1 GELS 1/1/1 FL n/a CL- 24.8k FC n/a SOL SD OIL /99 MBT pH 8.2 Ca+ 40 KCl 27.4k MWD SUMMARY INTERVAL TO TOOLS No tools in hole this period. GAS SUMMARY (units) HIGH LOW AVERAGE DITCH GAS @ @ TRIP GAS n/a CUTTING GAS @ @ WIPER GAS n/a CHROMATOGRAPHY (ppm) SURVEY n/a METHANE (C-1) @ @ CONNECTION GAS HIGH n/a ETHANE (C-2) @ @ AVG n/a PROPANE (C-3) @ @ CURRENT n/a BUTANE (C-4) @ @ CURRENT BACKGROUND/AVG n/a PENTANE (C-5) @ @ HYDROCARBON SHOWS No new footage drilled this period. INTERVAL LITHOLOGY/REMARKS GAS DESCRIPTION LITHOLOGY PRESENT LITHOLOGY No new footage drilled this period. DAILY ACTIVITY SUMMARY December 13, 2011 Continue to pull out of hole from 6028 ft; lay down liner hanger; pick up 7” x 9-5/8” dressing mill; trip in hole to top of liner at 7343 ft; dressed 7” x 9-5/8” liner tie back receptacle at 7343 ft at 4k wob, 40 rpm, 7k torque; verify clean sting in with pump off (X2); circulate bottoms up at 160 gpm, 350 psi; clean pits #1-5; stage and load chemical for completion fluid; test 7” liner at 2500 psi for 30 minutes; CANRIG records and charts test; take on water to pits; build 650 bbls KCl completion fluid; service top drive; pick up drill pipe thread protectors; displace to completion fluid—pump 40 bbl spacer, KCl to surface at 690 gpm, 263 psi, 7200 total strokes; blow down top drive. Currently laying down 5” drill pipe from 7343 ft to 7211 ft at report time. CANRIG PERSONNEL ON BOARD Resch, Rosenblume, Hillegeist___ DAILY COST $2427.00 REPORT BY Larry Resch Cook Inlet Natural Gas Cannery Loop/ Sterling C DAILY WELLSITE REPORT CLU Storage 1 REPORT FOR Steve, Stephen Ratcliff DATE Dec 14, 2011 DEPTH 9661' PRESENT OPERATION Prepare to run 7" liner TIME 2359 hrs YESTERDAY 9661' 24 HOUR FOOTAGE 0' CASING INFORMATION ___9-5/8" @ 7563'___7" @ 9659' SURVEY DATA DEPTH INCLINATION AZIMUTH VERTICAL DEPTH BIT INFORMATION INTERVAL CONDITION REASON NO. SIZE TYPE S/N JETS/ TFA IN OUT FOOTAGE HOURS T/B/C PULLED DRILLING PARAMETERS HIGH LOW AVERAGE CURRENT AVG RATE OF PENETRATION @ @ FT/HR SURFACE TORQUE @ @ FT-LBS WEIGHT ON BIT @ @ KLBS ROTARY RPM @ @ RPM PUMP PRESSURE @ @ PSI DRILLING MUD REPORT DEPTH 9661/ 5164 MW 8.7 VIS PV YP GELS FL CL- 26.8k FC SOL SD OIL MBT pH 8.3 Ca+ 120 KCl 29.4k MWD SUMMARY INTERVAL TO TOOLS No tools in hole this period. GAS SUMMARY (units) HIGH LOW AVERAGE DITCH GAS @ @ TRIP GAS n/a CUTTING GAS @ @ WIPER GAS n/a CHROMATOGRAPHY (ppm) SURVEY n/a METHANE (C-1) @ @ CONNECTION GAS HIGH n/a ETHANE (C-2) @ @ AVG n/a PROPANE (C-3) @ @ CURRENT n/a BUTANE (C-4) @ @ CURRENT BACKGROUND/AVG n/a PENTANE (C-5) @ @ HYDROCARBON SHOWS No new footage drilled this period. INTERVAL LITHOLOGY/REMARKS GAS DESCRIPTION LITHOLOGY PRESENT LITHOLOGY No new footage drilled this period. DAILY ACTIVITY SUMMARY December 14, 2011 Continue to lay down 5” drill pipe from 7211 ft; run in hole with 5” drill pipe from derrick to 1648 ft, lay down same; lay down dressing mill; pull wear bushing; drain stack; dummy run landing joint and hanger with FMC, lay down same; attempts to land test plug and 7” test joint fail; change out seal ring and reset; test BOP’s and related valves with 7” test joint at 250 psi low, 2500 psi high; BOP test waived witness by AOGCC representative Jeff Jones; rig down/ lay down all test equipment upon completion; blow down surface equipment; prepare to run 7” tubing; change to long bales; rig up 7” handling equipment and Weatherford torque turn double tongs. Currently picking up and inspecting 7” shoe track and seal assembly at report time. CANRIG PERSONNEL ON BOARD Resch, Rosenblume, Hillegeist___ DAILY COST $2427.00 REPORT BY Larry Resch Cook Inlet Natural Gas Cannery Loop/ Sterling C DAILY WELLSITE REPORT CLU Storage 1 REPORT FOR Steve, Stephen Ratcliff DATE Dec. 15, 2011 DEPTH 9661' PRESENT OPERATION Prepare to nipple down TIME 2359 hrs YESTERDAY 9661' 24 HOUR FOOTAGE 0' CASING INFORMATION SURVEY DATA DEPTH INCLINATION AZIMUTH VERTICAL DEPTH BIT INFORMATION INTERVAL CONDITION REASON NO. SIZE TYPE S/N JETS/ TFA IN OUT FOOTAGE HOURS T/B/C PULLED DRILLING PARAMETERS HIGH LOW AVERAGE CURRENT AVG RATE OF PENETRATION @ @ FT/HR SURFACE TORQUE @ @ FT-LBS WEIGHT ON BIT @ @ KLBS ROTARY RPM @ @ RPM PUMP PRESSURE @ @ PSI DRILLING MUD REPORT DEPTH MW VIS PV YP GELS FL CL- FC SOL SD OIL MBT pH Ca+ KCl MWD SUMMARY INTERVAL TO TOOLS No tools in hole this period. GAS SUMMARY (units) HIGH LOW AVERAGE DITCH GAS @ @ TRIP GAS n/a CUTTING GAS @ @ WIPER GAS n/a CHROMATOGRAPHY (ppm) SURVEY n/a METHANE (C-1) @ @ CONNECTION GAS HIGH n/a ETHANE (C-2) @ @ AVG n/a PROPANE (C-3) @ @ CURRENT n/a BUTANE (C-4) @ @ CURRENT BACKGROUND/AVG 0 PENTANE (C-5) @ @ HYDROCARBON SHOWS No new footage drilled this period. INTERVAL LITHOLOGY/REMARKS GAS DESCRIPTION LITHOLOGY PRESENT LITHOLOGY No new footage drilled this period. DAILY ACTIVITY SUMMARY December 15, 2011 Run in hole with 7” 26# L-80 VAM top liner per CINGSA running order; circulate down last joint at 221 gpm312 psi to 7325 ft; pressure increases; shut down pumps; sting in seal assembly no-go @ 45.5’ down from rotary; lay down 3 joints; pull joint # 234 and 233; make up test control line on S.S.S.V and secure to pipe; space out with 4.90’ and 19.39’ pups; make up joint # 235, landing joint and hanger; terminate control line; land hanger and verify; reverse circulate 200 gallons diesel and Conqer 303A inhibitor; chase with 207 bbls brine at 285 gpm, 460 psi; let settle and drain stack; landing hanger 165k/ 112k; R.I.L.D.S.; rig down landing joint; rig up and test 7” tubing to 3000 psi for 30 minutes at 63 strokes; test 7” x 9-5/8” annulus to 1500 psi for 30 minutes at 47 strokes; CANRIG records and charts both tests; secure well, drain stack; install BPV as per FMC; flush stack, mud pumps, choke manifold and blow down all; drain pits. CANRIG released from obligations at 2250 hours. ML057 rig down operations continue at report time. CANRIG PERSONNEL ON BOARD Resch, Rosenblume, Hillegeist___ DAILY COST $2427.00 REPORT BY Larry Resch