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Home My WebLink About207-1641. 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: Tbg Patch, Install Cap String Development Exploratory 3. Address: Stratigraphic Service 6. API Number: 7. Property Designation (Lease Number): 8. Well Name and Number: 9. Logs (List logs and submit electronic data per 20AAC25.071): 10. Field/Pool(s): 11. Present Well Condition Summary: Total Depth measured 8,436 feet 7890 & 8022 feet true vertical 7,985 feet 3244 & 7782 feet Effective Depth measured 3,459 feet 889 & 3667 feet true vertical 3,015 feet 877 & 3219 feet Perforation depth Measured depth See Schematic feet True Vertical depth See Schematic feet Cap String 3/8" 2,632' MD 2,289' TVD Tubing (size, grade, measured and true vertical depth) 3-1/2" 9.2# / L-80 3,627' MD 3,179' TVD Tripoint Hydraul & Pkr; 889' MD 877' TVD Packers and SSSV (type, measured and true vertical depth) ZXP Liner Pkr; TRSSSV 3,667' MD 3,219' TVD 128' MD/TVD 12. Stimulation or cement squeeze summary: Intervals treated (measured): Treatment descriptions including volumes used and final pressure: N/A 13a. Prior to well operation: Subsequent to operation: 13b. Pools active after work: 15. Well Class after work: Daily Report of Well Operations Exploratory Development Service Stratigraphic Copies of Logs and Surveys Run 16. Well Status after work: Oil Gas WDSPL Electronic Fracture Stimulation Data GSTOR GINJ SUSP SPLUG Sundry Number or N/A if C.O. Exempt: Authorized Name and Digital Signature with Date: Contact Name: Contact Email: Authorized Title: Contact Phone: Scott Warner, Operations Engineer 324-270 Sr Pet Eng: 7,500psi Sr Pet Geo: Sr Res Eng: WINJ WAG 349 Water-BblOil-Bbl 17. I hereby certify that the foregoing is true and correct to the best of my knowledge. Noel Nocas, Operations Manager 907-564-5278 N/A scott.warner@hilcorp.com 907-564-4506 measured true vertical Packer Representative Daily Average Production or Injection Data Casing Pressure Tubing Pressure 14. Attachments (required per 20 AAC 25.070, 25.071, & 25.283) 0 Gas-Mcf MD 0 Size 114' 5 0778 0 730 70 measured TVD 7-5/8" 8,430psi STATE OF ALASKA ALASKA OIL AND GAS CONSERVATION COMMISSION REPORT OF SUNDRY WELL OPERATIONS 207-164 50-133-20573-00-00 3800 Centerpoint Drive, Suite 1400 Anchorage, Alaska 99503 Hilcorp Alaska, LLC N/A 5. Permit to Drill Number:2. Operator Name 4. Well Class Before Work: FEE TRACT, ADL-384372 Ninilchik Unit - Beluga/Tyonek Gas Pool Ninilchik Unit Paxton 2 Plugs Junk measured Length Production Liner 3,881' 4,700' Casing Structural 3,453' 4-1/2" 3,902' 8,385' 7,934' 114'Conductor Surface Intermediate 20" 10-3/4" 93' 1,596' 4,790psi 3,060psi 3,580psi 6,890psi 1,617' 1,478' Burst Collapse 1,500psi 2,090psi p k ft t Fra O s Ot 6. A G L PG , Form 10-404 Revised 10/2022 Due Within 30 days of Operations Submit in PDF format to aogcc.permitting@alaska.gov By Grace Christianson at 3:41 pm, Jul 22, 2024 Digitally signed by Noel Nocas (4361) DN: cn=Noel Nocas (4361) Date: 2024.07.22 14:14:32 - 08'00' Noel Nocas (4361) Page 1/1 Well Name: NINU Paxton 02 Report Printed: 7/10/2024www.peloton.com Alaska Weekly Report - Operations Jobs Actual Start Date:5/14/2024 End Date: Report Number 1 Report Start Date 5/14/2024 Report End Date 5/14/2024 Last 24hr Summary Pull SSSV, drift tubing. Report Number 2 Report Start Date 5/16/2024 Report End Date 5/16/2024 Last 24hr Summary PTW/PJSM. MIRU AK E-line. P-test 250/2,000 psi. Perforate BEL 80 from 3,161' - 3,175' MD, BEL 75 from 3,127' - 3,133' MD, and BEL 74 from 3,088' - 3,096' MD with well flowing. Pre-perf rate/pressure was 254 mcfd at 98 psi. Post-perf rate/pressure was 1,050 mcfd at 104 psi. While POH after the BEL 74 perfs, tools became stuck at 2,360'. SI well, worked line and pulled out of the rope socket. Recovered all the line. SITP 615 psi. SDFN. Report Number 3 Report Start Date 5/17/2024 Report End Date 5/18/2024 Last 24hr Summary PTW/PJSM. SITP 625 psi. MIRU Pollard slickline unit. P-test 250/2,000 psi. GIH with lead impression block and tag at 2,331' KB. Good impression of fishing neck. GIH with overshot/grapple, latch fish, beat down several times, jar up once and POH with fish. Make gauge ring run to 3,350'. RD slickline. MU e-line lubricator and test to 250/2,000 psi. Perforate BEL 72 from 2,993' - 3,005' MD, BEL 70 from 2,958' - 2,970' MD, and BEL 59 from 2,827'- 2,836' MD with the well shut in. No significant pressure changes while perforating. Final SITP 708 psi. RDMO e-line and turn well over to Production Ops. Report Number 4 Report Start Date 5/21/2024 Report End Date 5/21/2024 Last 24hr Summary PTW, PJSM. PT 250/2000, perforate with well shut in, BEL56 from 2656'-2666' MD Final SITP 587. Report Number 5 Report Start Date 5/29/2024 Report End Date 5/29/2024 Last 24hr Summary Drift to 3450 w/ 2.75 G-ring, to 2780 w/ 2.75 Guns Report Number 6 Report Start Date 5/30/2024 Report End Date 5/31/2024 Last 24hr Summary PJSM, Crew travel to location, Spot in & rig up, Make up patch tools & equipment, Stab onto well & pressure test 250/2500-good, Run in hole with patch, Correlate- on depth, Set patch (F/ 2650' to 2671.7'), Pull out of hole to 936' ccl depth (Tight spot unable to pass), Work string free, Pull out of hole, Rig down & release. Report Number 7 Report Start Date 6/25/2024 Report End Date 6/26/2024 Last 24hr Summary MIRU HAK Cap string truck. Make up 3/4" OD foot valve. Stab on well with packoff assembly. Pressure test pack off assembly and well connection 250/3500 psi. RIH. Set down on top of tubing patch @ 2636' CTMD. Not able to work past tubing patch. Pick up in tenison 700 lbs. Set capillary tubing at 2632' CTMD. Lock down dynamic and static packoff assembly. Install 3/8' mechanical tubing hanger. Pick injecotor head from packoff and secure on deck of capstring truck. Split injector head remove 3/8" capillary tubing. Secure spool. Install remaining surface tubing and spool inside footprint of previous installed wellhouse. Finish rigging down Cap string truck and demobe. Report Number 8 Report Start Date 6/26/2024 Report End Date 6/26/2024 Last 24hr Summary Remove Well House/Replace Field: Ninilchik Sundry #: 324-270 State: Alaska Rig/Service:Permit to Drill (PTD) #:207-164Permit to Drill (PTD) #:207-164 Wellbore API/UWI:50-133-20573-00-00 KOP @ 325' MD/TVD Build 4.0 deg/100' from 487-1362' MD Hold 38.35 deg from 1362-2668' MD Drop 3.0 deg/100' to 3918' MD Hold 0 deg from 3918' to TD at 8448' MD Paxton #2 Ninilchik Unit 746' FNL, 2,914' FEL Sec. 13, T1S, R14W, S.M. * ZXP Liner Packer with 6' Tieback Extension @ 3,667' MD (Top) * Flex-Lock Liner Hanger @ 3701' MD (Top) KB:21' AGL (171' KB Elev) API #:50-133-20573-00-00 Permit #:207-1640 Property Des:ADL - 384372 WBS #:DD.07.16241.CAP X= 206,414.356 (NAD27) Y=2,230,614.114 (NAD27) Lat:60º 05' 43.394" N Long:151º 36' 38.544" W Spud:06:30 hrs 01/18/2008 TD:06:00 hrs 2/1/2008 Rig Released:18:00 hrs 2/15/2008 TD: 8,436' MD 7,985' TVD Expro Radial Bond Log (2/19/08) Conductor 20" K-55 133 ppf PE Top Bottom MD 0' 114 TVD 0' 114' Surface Casing 10-3/4" J-55 45.5 #, BTC MD 0' 1,617'TVD 0' 1,487' 13-1/2" hole with 457sks (202 bbls) 12 ppg 100% returns and 40 bbls, Cmt to surface. Intermediate Casing 7-5/8" L-80 29.7 ppf BTC Top Bottom MD 0' 3,902' TVD 0' 3,453' 9-7/8" hole with 265sks (99 bbls) 12.0 ppg Type 1 Lead Cmt & 150sks (31 bbls) 15.8 ppg Class G Cmt Tail. Slight interface returns to surface. Production Liner 4-1/2" L-80 12.6 ppf Hydril 563 Top Bottom MD 3,685' 8,385' TVD 3,237' 7,934' 6-3/4" hole Cmt w/ 284 sks (210 bbls) 10.5 ppg Class G, 100% Returns. 25 bbls cmt returns. Tubing 3-1/2" L-80 9.2 ppf IBT-M (09-01-21) Top Bottom MD 0' 952' TVD 0' 905' 3-1/2" L-80 9.2 ppf IBT-M (01-29-21) Top Bottom MD 952' 3,627' (float collar at 3,606') TVD 905' 3,219' PBTD: 3,459' MD 3,015' TVD FISH DETAIL 36' of 3-3/8" HSC Perf guns Tagged @ 7,602' MD w/ 2.82" GR (1/19/10) Tagged @ 7,782' MD (12/22/08) Well Name & Number: Municipality: Angle @ KOP & Depth: Date Completed: Revised by: Paxton # 2 Kenai Peninsula Borough ~ 2.5º / 100 ft, 325' - 1,300' 3/6/2008 Donna Ambruz Lease: State: Ninilchik Unit, ADL - 384372 Country: Angle @ Perfs: Ground Level: Revision Date: Alaska USA ~ 1.5º RKB:150' (AMSL)21' (AGL) 07-10-24 CIBP @ 8,022' CIBP @ 7,890' SCHEMATIC 7-5/8 TOC @ 1215' (1-27-21 CBL) 3459' PBTD from E-Line 3609' wiper plug (31.4bbls disp)3638' CIBP (set 1/28/21) 3-1/2 TOC @ 1240' (02-03-21 CBL) 128' - TRSSSV (Giant) 9/1/21 2.810"ID 918' X Nipple 9/1/21 2.813"ID 952' Overshot 9/1/21 889' Tripoint Hydraulic Pkr 9/1/21 Tyonek Beluga 90B-92 LOCKOUT 10/25/223.5" SLB FlowGard WR-SSSV set 11/4/22 Beluga 59-80 3/8" Cap String0' - 2,632'06/26/24 Tubing Patch2650'-2672'05/30/24 Beluga 56 Nolan Vlahovich Hilcorp Alaska, LLC Geotech 3800 Centerpoint Drive, Suite 1400 Anchorage, AK 99503 Tele: (907) 564-4558 E-mail: nolan.vlahovich@hilcorp.com Please acknowledge receipt by signing and returning one copy of this transmittal. Received By: Date: Date: 6/27/2024 To: Alaska Oil & Gas Conservation Commission Natural Resource Technician 333 W 7th Ave Suite 100 Anchorage, AK 99501 SFTP DATA TRANSMITTAL T#20240627 Well API #PTD #Log Date Log Company Log Type AOGCC Eset# KBU 43-07Y 50133206250000 214019 6/6/2024 AK E-LINE Perf KBU 43-07Y 50133206250000 214019 6/10/2024 AK E-LINE Perf KBU 43-07Y 50133206250000 214019 6/12/2024 AK E-LINE Perf MPU F-6650029226970ϭ00 1961ϲϮ 5/17/2024 AK E-LINE Perf MRU K-03RD2 50733200740200 217029 5/25/2024 AK E-LINE TubingPunch PAXTON 2 50133205730000 207164 5/16/2024 AK E-LINE Pref PAXTON 2 50133205730000 207164 5/30/2024 AK E-LINE TubingPatch PAXTON 11 50133207040000 221114 5/20/2024 AK E-LINE Perf SCU 13-09 50133203430000 181098 6/2/2024 AK E-LINE Cement/JetCut SDI 3-07A 50029219110100 198147 5/28/2024 AK E-LINE Pkr/Poglm SRU 14B-27 50133206040000 212089 6/15/2024 AK E-LINE JewelryLog SRU 32C-15 50133206130000 213070 6/13/2024 AK E-LINE TubingCut Revision Explanation: There are additional images added to the final report and a few new .las files. In the Emeraude folder there are 2 new .las files and in the Field Data folder the RIH and POOH are new .las files Please include current contact information if different from above. T39076 T39076 T39076 T39077 T39078 T39079 T39079 T39080 T39081 T39082 T39083 T39084 PAXTON 2 50133205730000 207164 5/16/2024 AK E-LINE Pref PAXTON 2 50133205730000 207164 5/30/2024 AK E-LINE TubingPatch Gavin Gluyas Digitally signed by Gavin Gluyas Date: 2024.06.27 13:09:17 -08'00' From:McLellan, Bryan J (OGC) To:Scott Warner Subject:RE: [EXTERNAL] RE: Paxton 2 AOGCC 10-403 324-270 PTD 207-164 Approved 05-10-24 Date:Wednesday, June 12, 2024 3:41:00 PM Scott, Hilcorp has approval to continue to produce this well without SSSV until the Cap String is installed, no later than June 28th, 2024. Regards Bryan McLellan Senior Petroleum Engineer Alaska Oil & Gas Conservation Commission Bryan.mclellan@alaska.gov +1 (907) 250-9193 From: Scott Warner <Scott.Warner@hilcorp.com> Sent: Tuesday, June 11, 2024 3:54 PM To: McLellan, Bryan J (OGC) <bryan.mclellan@alaska.gov> Subject: RE: [EXTERNAL] RE: Paxton 2 AOGCC 10-403 324-270 PTD 207-164 Approved 05-10-24 Byran, Thank you for the approval. We had planned to get this cap string installed last week but our cap string truck operator/wellsite leader was on the coil job offshore which took a lot longer than planned after running into issues downhole. Since the job offshore has completed, our operator/wellsite leader has gone off shift and will not be back until the week of the 23rd. I know we are required to install the SSSV within 2 weeks of wellwork operations commencing and wanted to request approval for Hilcorp to wait until the week of the 23rd to install the cap string once our cap string operator/wellsite leader was back on shift and leave the SSSV out in the meantime. As soon as our operator is back on shift we will be installing this cap string if approval is granted to hold off until his return. CAUTION: External sender. DO NOT open links or attachments from UNKNOWN senders. Thanks, Scott Warner Kenai – Operations Engineer Office: (907) 564-4506 Cell: (907) 830-8863 From: McLellan, Bryan J (OGC) <bryan.mclellan@alaska.gov> Sent: Wednesday, June 5, 2024 2:45 PM To: Scott Warner <Scott.Warner@hilcorp.com> Subject: [EXTERNAL] RE: Paxton 2 AOGCC 10-403 324-270 PTD 207-164 Approved 05-10-24 Scott, Hilcorp has approval to install the cap string on the condition the tree cap with cap string is pressure tested to 1500 psi prior to running in hole. Please report it with 10-404 for sundry 324-270 Bryan McLellan Senior Petroleum Engineer Alaska Oil & Gas Conservation Commission Bryan.mclellan@alaska.gov +1 (907) 250-9193 From: Scott Warner <Scott.Warner@hilcorp.com> Sent: Wednesday, June 5, 2024 8:29 AM To: McLellan, Bryan J (OGC) <bryan.mclellan@alaska.gov> Subject: RE: Paxton 2 AOGCC 10-403 324-270 PTD 207-164 Approved 05-10-24 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. Bryan, We recently set a patch in this well to shut off water which was successful, but we are still making enough water that soap drops are needed to keep the well unloaded and producing. We plan to install the cap string over the next week if we get approval to do so as mentioned in the email below. If you have any questions, please let me know. Thanks, Scott Warner Kenai – Operations Engineer Office: (907) 564-4506 Cell: (907) 830-8863 From: Scott Warner <Scott.Warner@hilcorp.com> Sent: Wednesday, May 22, 2024 2:53 PM To: McLellan, Bryan J (CED) <bryan.mclellan@alaska.gov> Subject: RE: Paxton 2 AOGCC 10-403 324-270 PTD 207-164 Approved 05-10-24 Bryan, We recently completed perfs on Pax 2 per sundry attached and we are now making enough water that soap drops are needed to keep the well unloaded. I am requesting email approval to amend the current open sundry, 324-270, and include a cap string install for soap injection. This will require the SSSV to be blocked open at surface while the cap string is installed. Thanks, Scott Warner Kenai – Operations Engineer Office: (907) 564-4506 Cell: (907) 830-8863 From: Donna Ambruz <dambruz@hilcorp.com> Sent: Friday, May 10, 2024 10:33 AM To: Scott Warner <Scott.Warner@hilcorp.com> Cc: Noel Nocas <Noel.Nocas@hilcorp.com>; Jacob Flora <Jake.Flora@hilcorp.com> Subject: Paxton 2 AOGCC 10-403 324-270 PTD 207-164 Approved 05-10-24 FYI – Please distribute as necessary. Thank you. Donna Ambruz Operations/Regulatory Tech KEN Asset Team Hilcorp Alaska, LLC 3800 Centerpoint Drive, Suite 1400 Anchorage, AK 99503 907.777.8305 - Direct dambruz@hilcorp.com The information contained in this email message is confidential and may be legally privileged and is intended only for the use of theindividual or entity named above. If you are not an intended recipient or if you have received this message in error, you are herebynotified that any dissemination, distribution, or copy of this email is strictly prohibited. If you have received this email in error, pleaseimmediately notify us by return email or telephone if the sender's phone number is listed above, then promptly and permanently deletethis message. While all reasonable care has been taken to avoid the transmission of viruses, it is the responsibility of the recipient to ensure that the onward transmission, opening, or use of this message and any attachments will not adversely affect its systems or data. No responsibility is accepted by the company in this regard and the recipient should carry out such virus and other checks as it considers appropriate. The information contained in this email message is confidential and may be legally privileged and is intended only for the use of theindividual or entity named above. If you are not an intended recipient or if you have received this message in error, you are herebynotified that any dissemination, distribution, or copy of this email is strictly prohibited. If you have received this email in error, pleaseimmediately notify us by return email or telephone if the sender's phone number is listed above, then promptly and permanently deletethis message. While all reasonable care has been taken to avoid the transmission of viruses, it is the responsibility of the recipient to ensure that theonward transmission, opening, or use of this message and any attachments will not adversely affect its systems or data. No responsibility is accepted by the company in this regard and the recipient should carry out such virus and other checks as it considers appropriate. CAUTION: This email originated from outside the State of Alaska mail system. Do not click links or open attachments unless you recognize the sender and know the content is safe. From:McLellan, Bryan J (OGC) To:Scott Warner Subject:RE: Paxton 2 AOGCC 10-403 324-270 PTD 207-164 Approved 05-10-24 Date:Wednesday, June 5, 2024 2:44:00 PM Scott, Hilcorp has approval to install the cap string on the condition the tree cap with cap string is pressure tested to 1500 psi prior to running in hole. Please report it with 10-404 for sundry 324-270 Bryan McLellan Senior Petroleum Engineer Alaska Oil & Gas Conservation Commission Bryan.mclellan@alaska.gov +1 (907) 250-9193 From: Scott Warner <Scott.Warner@hilcorp.com> Sent: Wednesday, June 5, 2024 8:29 AM To: McLellan, Bryan J (OGC) <bryan.mclellan@alaska.gov> Subject: RE: Paxton 2 AOGCC 10-403 324-270 PTD 207-164 Approved 05-10-24 Bryan, We recently set a patch in this well to shut off water which was successful, but we are still making enough water that soap drops are needed to keep the well unloaded and producing. We plan to install the cap string over the next week if we get approval to do so as mentioned in the email below. If you have any questions, please let me know. Thanks, Scott Warner Kenai – Operations Engineer Office: (907) 564-4506 Cell: (907) 830-8863 From: Scott Warner <Scott.Warner@hilcorp.com> Sent: Wednesday, May 22, 2024 2:53 PM To: McLellan, Bryan J (CED) <bryan.mclellan@alaska.gov> Subject: RE: Paxton 2 AOGCC 10-403 324-270 PTD 207-164 Approved 05-10-24 Bryan, We recently completed perfs on Pax 2 per sundry attached and we are now making enough water that soap drops are needed to keep the well unloaded. I am requesting email approval to amend the current open sundry, 324-270, and include a cap string install for soap injection. This will require the SSSV to be blocked open at surface while the cap string is installed. Thanks, Scott Warner Kenai – Operations Engineer Office: (907) 564-4506 Cell: (907) 830-8863 From: Donna Ambruz <dambruz@hilcorp.com> Sent: Friday, May 10, 2024 10:33 AM To: Scott Warner <Scott.Warner@hilcorp.com> Cc: Noel Nocas <Noel.Nocas@hilcorp.com>; Jacob Flora <Jake.Flora@hilcorp.com> Subject: Paxton 2 AOGCC 10-403 324-270 PTD 207-164 Approved 05-10-24 FYI – Please distribute as necessary. Thank you. Donna Ambruz Operations/Regulatory Tech KEN Asset Team Hilcorp Alaska, LLC 3800 Centerpoint Drive, Suite 1400 Anchorage, AK 99503 907.777.8305 - Direct dambruz@hilcorp.com The information contained in this email message is confidential and may be legally privileged and is intended only for the use of theindividual or entity named above. If you are not an intended recipient or if you have received this message in error, you are herebynotified that any dissemination, distribution, or copy of this email is strictly prohibited. If you have received this email in error, pleaseimmediately notify us by return email or telephone if the sender's phone number is listed above, then promptly and permanently deletethis message. While all reasonable care has been taken to avoid the transmission of viruses, it is the responsibility of the recipient to ensure that the onward transmission, opening, or use of this message and any attachments will not adversely affect its systems or data. No responsibility is accepted by the company in this regard and the recipient should carry out such virus and other checks as it considers appropriate. 1. Type of Request: Abandon Plug Perforations Fracture Stimulate Repair Well Operations shutdown Suspend Perforate Other Stimulate Pull Tubing Change Approved Program Plug for Redrill Perforate New Pool Re-enter Susp Well Alter Casing Other: N2 2. Operator Name: 4. Current Well Class: 5. Permit to Drill Number: Exploratory Development 3. Address:Stratigraphic Service 6. API Number: 7. If perforating: 8. Well Name and Number: What Regulation or Conservation Order governs well spacing in this pool? Yes No 9. Property Designation (Lease Number): 10. Field: 11. Total Depth MD (ft): Total Depth TVD (ft): Effective Depth MD: Effective Depth TVD: Junk (MD): 8,436' 3685' Casing Collapse Structural Conductor 1,500 psi Surface 2,090 psi Intermediate 4,790 psi Production Liner 7,500 psi Packers and SSSV Type: Packers and SSSV MD (ft) and TVD (ft): 12. Attachments: Proposal Summary Wellbore schematic 13. Well Class after proposed work: Detailed Operations Program BOP Sketch Exploratory Stratigraphic Development Service 14. Estimated Date for 15. Well Status after proposed work: Commencing Operations: OIL WINJ WDSPL Suspended 16. Verbal Approval: Date: GAS WAG GSTOR SPLUG AOGCC Representative: GINJ Op Shutdown Abandoned Contact Name: Contact Email: Contact Phone: Authorized Title: Conditions of approval: Notify AOGCC so that a representative may witness Sundry Number: Plug Integrity BOP Test Mechanical Integrity Test Location Clearance Other Conditions of Approval: Post Initial Injection MIT Req'd? Yes No APPROVED BY Approved by: COMMISSIONER THE AOGCC Date: Comm. Comm. Sr Pet Eng Sr Pet Geo Sr Res Eng 3,667' MD/3,219' TVD; N/A scott.warner@hilcorp.com 907-564-4506 Noel Nocas, Operations Manager 907-564-5278 Suspension Expiration Date: May 17, 2024 Current Pools: MPSP (psi): Plugs (MD): 17. I hereby certify that the foregoing is true and the procedure approved herein will not be deviated from without prior written approval. Authorized Name and Digital Signature with Date: Tubing Size: PRESENT WELL CONDITION SUMMARY Scott Warner, Operations Engineer ZXP Liner Packer; N/A AOGCC USE ONLY 8,430 psi Tubing Grade: Tubing MD (ft):Perforation Depth TVD (ft): Subsequent Form Required: STATE OF ALASKA ALASKA OIL AND GAS CONSERVATION COMMISSION APPLICATION FOR SUNDRY APPROVALS 20 AAC 25.280 FEE TRACT, ADL-384372 207-164 50-133-20573-00-00 Hilcorp Alaska, LLC Proposed Pools: 3800 Centerpoint Drive, Suite 1400 Anchorage, Alaska 99503 1,596' MDLength 9.3# / L-80 TVD Burst 3,627 1,478' See Attached Schematic 6,890 psi 3,060 psi 3,580 psi 114' 3,453' 114' 1,617' 93' 7,934' Perforation Depth MD (ft): 3,902' 4-1/2" 7-5/8"3,881' NINU Paxton 2CO 701C Same ~1024psi 3638', 7890', 8022' 10-3/4" Size Will perfs require a spacing exception due to property boundaries? See Attached Schematic 7,985' 3459' 3015' Ninilchik Beluga/Tyonek Gas 20" 8,385'4,700' 3-1/2" m n P s t N 66 Form 10-403 Revised 06/2023 Approved application valid for 12 months from date of approval.Submit PDF to aogcc.permitting@alaska.gov By Grace Christianson at 2:55 pm, May 03, 2024 SFD 5/3/2024 DSR-5/6/24 10-404 BJM 5/9/24JLC 5/9/2024 Well Prognosis Well: Paxton 2 Date: 5/3/24 Well Name: Paxton 2 API Number: 50-133-20573-00-00 Current Status: Producing Gas Well Permit to Drill Number: 207-164 Regulatory Contact: Donna Ambruz (907) 777-8305 First Call Engineer: Scott Warner (907) 564-4506 (O) (907) 830-8863 (C) Second Call Engineer: Chad Helgeson (907) 777-8405 (O) (907) 229-4824 (C) Maximum Expected BHP: 1325 psi @ 3011 TVD Based on 0.44 psi/ft Max. Potential Surface Pressure:1024 psi Based on 0.1 psi/ft gas gradient to surface Applicable Frac Gradient: 0.78 psi/ft using 15.0 ppg EMW FIT at the surface casing shoe Shallowest Allowable Perf TVD: MPSP/(0.78-0.1) = 1024 psi / 0.68 = 1505 TVD (Will not perf above surface casing shoe) Top of Applicable Gas Pool: 1580 MD/ 1458 TVD Well Status: Online Gas Producer flowing at 342 mcfd, 0 bwpd, 73 psi FTP Brief Well Summary Paxton 2 was drilled and completed in 2008 in the Tyonek gas sands. A coil tubing velocity string was run in May 2010 to help the well unload water. In August of 2020 the velocity string parted while attempting to be removed. The Tyonek was isolated, 4.5 tubing removed, and a 3.5 completion was run and cemented. An SSSV was not run in the original completion and a K valve was installed on a retrievable packer before the well was worked over again to install a TRSSSV by cutting and pulling the 3.5 tubing, running an over shot, packer and surface controlled TRSSSV. The TRSSSV failed and a WRSSSV was installed in November of 2022. The purpose of this sundry is to perforate additional footage in the Beluga 56-80 sands to increase production. Notes Regarding Wellbore Condition 11/04/22 TRSSSV locked out. WRSSSV set @ 156 KB. 09/04/21 Swab fluid from 3250/top of WRP set during Workover. Pull WRP from 3252. Procedure: 1. MIRU SL 2. PT lubricator to 250 psi low / 2,000 psi high 3. RIH and pull WRSSSV 4. Drift to TD 5. RDMO SL 6. MIRU E-line and pressure control equipment 7. PT lubricator to 250 psi low / 2,000 psi high 8. RIH and perforate Beluga 56 - 80 sands while flowing from bottom up with 2-1/2 60 deg phased perf guns: Below are proposed targeted sands in order of testing (bottom/up), but additional sand may be added depending on results of these perfs, between the proposed top and bottom perfs Sand Top MD Btm MD Top TVD Btm TVD Interval BEL 56 ±2,656' ±2,666' ±2,309' ±2,316' ±10' BEL 59 ±2,827' ±2,836' ±2,447' ±2,454' ±9' Top of Applicable Gas Pool: 1580 MD Well Prognosis Well: Paxton 2 Date: 5/3/24 BEL 70 ±2,958' ±2,970' ±2,557' ±2,567' ±12' BEL 72 ±2,993' ±3,005' ±2,587' ±2,598' ±12' BEL 74 ±3,088' ±3,096' ±2,671' ±2,678' ±8' BEL 75 ±3,127' ±3,133' ±2,705' ±2,711' ±6' BEL 80 ±3,160' ±3,168' ±2,734' ±2,742' ±8' BEL 80 ±3,171' ±3,175' ±2,745' ±2,748' ±4' a. Proposed perfs are also shown on the proposed schematic in red font b. Correlate using Open Hole Correlation Log provided by Geologist. Send the correlation pass to the Operations Engineer, Reservoir Engineer, and Geologist for confirmation c. Use Gamma/CCL to correlate d. Record Tubing pressures before and after each perforating run at 5 min, 10 min, and 15 min intervals post perf shot (if using switched guns, wait 10 min between shots) e. Pending well production, all perf intervals may not be completed f. If any zone produces sand and/or water or needs isolated, RIH and set plug above the perforations OR patch across the perforations g. If necessary, use nitrogen to pressure up well during perforating or to depress water prior to setting a plug above perforations 9. RDMO 10. MIRU SL and install WRSSSV within 2 weeks of well intervention completion, RDMO Attachments: 1. Current Schematic 2. Proposed Schematic 3. Standard Well Procedure N2 Operations KOP @ 325' MD/TVD Build 4.0 deg/100' from 487-1362' MD Hold 38.35 deg from 1362-2668' MD Drop 3.0 deg/100' to 3918' MD Hold 0 deg from 3918' to TD at 8448' MD Paxton #2 Ninilchik Unit 746' FNL, 2,914' FEL Sec. 13, T1S, R14W, S.M. * ZXP Liner Packer with 6' Tieback Extension @ 3,667' MD (Top) * Flex-Lock Liner Hanger @ 3701' MD (Top) KB:21' AGL (171' KB Elev) API #:50-133-20573-00-00 Permit #:207-1640 Property Des:ADL - 384372 WBS #:DD.07.16241.CAP X= 206,414.356 (NAD27) Y=2,230,614.114 (NAD27) Lat:60º 05' 43.394" N Long:151º 36' 38.544" W Spud:06:30 hrs 01/18/2008 TD:06:00 hrs 2/1/2008 Rig Released:18:00 hrs 2/15/2008 TD: 8,436' MD 7,985' TVD Expro Radial Bond Log (2/19/08) Conductor 20" K-55 133 ppf PE Top Bottom MD 0' 114 TVD 0' 114' Surface Casing 10-3/4" J-55 45.5 #, BTC MD 0' 1,617'TVD 0' 1,487' 13-1/2" hole with 457sks (202 bbls) 12 ppg 100% returns and 40 bbls, Cmt to surface. Intermediate Casing 7-5/8" L-80 29.7 ppf BTC Top Bottom MD 0' 3,902' TVD 0' 3,453' 9-7/8" hole with 265sks (99 bbls) 12.0 ppg Type 1 Lead Cmt & 150sks (31 bbls) 15.8 ppg Class G Cmt Tail. Slight interface returns to surface. Production Liner 4-1/2" L-80 12.6 ppf Hydril 563 Top Bottom MD 3,685' 8,385' TVD 3,237' 7,934' 6-3/4" hole Cmt w/ 284 sks (210 bbls) 10.5 ppg Class G, 100% Returns. 25 bbls cmt returns. Tubing 3-1/2" L-80 9.2 ppf IBT-M (09-01-21) Top Bottom MD 0' 952' TVD 0' 905' 3-1/2" L-80 9.2 ppf IBT-M (01-29-21) Top Bottom MD 952' 3,627' (float collar at 3,606') TVD 905' 3,219' PBTD: 3,459' MD 3,015' TVD FISH DETAIL 36' of 3-3/8" HSC Perf guns Tagged @ 7,602' MD w/ 2.82" GR (1/19/10) Tagged @ 7,782' MD (12/22/08) Well Name & Number: Municipality: Perforations (MD): Angle @ KOP & Depth: Date Completed: Revised by: Paxton # 2 Kenai Peninsula Borough 3,307- 7,574' ~ 2.5º / 100 ft, 325' - 1,300' 3/6/2008 Donna Ambruz Lease: State: Perf (TVD): Ninilchik Unit, ADL - 384372 Country: Angle @ Perfs: Ground Level: Revision Date: Alaska USA 2,871' - 7,123' ~ 1.5º RKB:150' (AMSL)21' (AGL) 11-16-22 CIBP @ 8,022' CIBP @ 7,890' SCHEMATIC 7-5/8 TOC @ 1215' (1-27-21 CBL) 3459' PBTD from E-Line 3609' wiper plug (31.4bbls disp)3638' CIBP (set 1/28/21) 3-1/2 TOC @ 1240' (02-03-21 CBL) 128' - TRSSSV (Giant) 9/1/21 918' X Nipple 9/1/21 952' Overshot 9/1/21 889' Tripoint Hydraulic Pkr 9/1/21 Tyonek Beluga LOCKOUT 10/25/223.5" SLB FlowGard WR-SSSV set 11/4/22 KOP @ 325' MD/TVD Build 4.0 deg/100' from 487-1362' MD Hold 38.35 deg from 1362-2668' MD Drop 3.0 deg/100' to 3918' MD Hold 0 deg from 3918' to TD at 8448' MD Paxton #2 Ninilchik Unit 746' FNL, 2,914' FEL Sec. 13, T1S, R14W, S.M. * ZXP Liner Packer with 6' Tieback Extension @ 3,667' MD (Top) * Flex-Lock Liner Hanger @ 3701' MD (Top) KB:21' AGL (171' KB Elev) API #:50-133-20573-00-00 Permit #:207-1640 Property Des:ADL - 384372 WBS #:DD.07.16241.CAP X= 206,414.356 (NAD27) Y=2,230,614.114 (NAD27) Lat:60º 05' 43.394" N Long:151º 36' 38.544" W Spud:06:30 hrs 01/18/2008 TD:06:00 hrs 2/1/2008 Rig Released:18:00 hrs 2/15/2008 TD: 8,436' MD 7,985' TVD Expro Radial Bond Log (2/19/08) Conductor 20" K-55 133 ppf PE Top Bottom MD 0' 114 TVD 0' 114' Surface Casing 10-3/4" J-55 45.5 #, BTC MD 0' 1,617'TVD 0' 1,487' 13-1/2" hole with 457sks (202 bbls) 12 ppg 100% returns and 40 bbls, Cmt to surface. Intermediate Casing 7-5/8" L-80 29.7 ppf BTC Top Bottom MD 0' 3,902' TVD 0' 3,453' 9-7/8" hole with 265sks (99 bbls) 12.0 ppg Type 1 Lead Cmt & 150sks (31 bbls) 15.8 ppg Class G Cmt Tail. Slight interface returns to surface. Production Liner 4-1/2" L-80 12.6 ppf Hydril 563 Top Bottom MD 3,685' 8,385' TVD 3,237' 7,934' 6-3/4" hole Cmt w/ 284 sks (210 bbls) 10.5 ppg Class G, 100% Returns. 25 bbls cmt returns. Tubing 3-1/2" L-80 9.2 ppf IBT-M (09-01-21) Top Bottom MD 0' 952' TVD 0' 905' 3-1/2" L-80 9.2 ppf IBT-M (01-29-21) Top Bottom MD 952' 3,627' (float collar at 3,606') TVD 905' 3,219' PBTD: 3,459' MD 3,015' TVD FISH DETAIL 36' of 3-3/8" HSC Perf guns Tagged @ 7,602' MD w/ 2.82" GR (1/19/10) Tagged @ 7,782' MD (12/22/08) Well Name & Number: Municipality: Angle @ KOP & Depth: Date Completed: Revised by: Paxton # 2 Kenai Peninsula Borough ~ 2.5º / 100 ft, 325' - 1,300' 3/6/2008 Donna Ambruz Lease: State: Ninilchik Unit, ADL - 384372 Country: Angle @ Perfs: Ground Level: Revision Date: Alaska USA ~ 1.5º RKB:150' (AMSL)21' (AGL) 05-03-24 CIBP @ 8,022' CIBP @ 7,890' PROPOSED 7-5/8 TOC @ 1215' (1-27-21 CBL) 3459' PBTD from E-Line 3609' wiper plug (31.4bbls disp)3638' CIBP (set 1/28/21) 3-1/2 TOC @ 1240' (02-03-21 CBL) 128' - TRSSSV (Giant) 9/1/21 918' X Nipple 9/1/21 952' Overshot 9/1/21 889' Tripoint Hydraulic Pkr 9/1/21 Tyonek Beluga 90B-92 LOCKOUT 10/25/223.5" SLB FlowGard WR-SSSV set 11/4/22 Beluga 90B-92 Beluga 56-80 STANDARD WELL PROCEDURE NITROGEN OPERATIONS 12/08/2015 FINAL v1 Page 1 of 1 1.) MIRU Nitrogen Pumping Unit and Liquid Nitrogen Transport. 2.) Notify Pad Operator of upcoming Nitrogen operations. 3.) Perform Pre-Job Safety Meeting. Review Nitrogen vendor standard operating procedures and appropriate Safety Data Sheets (formerly MSDS). 4.) Document hazards and mitigation measures and confirm flow paths. Include review on asphyxiation caused by nitrogen displacing oxygen. Mitigation measures include appropriate routing of flowlines, adequate venting and atmospheric monitoring. 5.) Spot Pumping Unit and Transport. Confirm liquid N2 volumes in transport. 6.) Rig up lines from the Nitrogen Pumping Unit to the well and returns tank. Secure lines with whip checks. 7.) Place signs and placards warning of high pressure and nitrogen operations at areas where Nitrogen may accumulate or be released. 8.) Place pressure gauges downstream of liquid and nitrogen pumps to adequately measure tubing and casing pressures. 9.) Place pressure gauges upstream and downstream of any check valves. 10.) Wellsite Manager shall walk down valve alignments and ensure valve position is correct. 11.) Ensure portable 4-gas detection equipment is onsite, calibrated, and bump tested properly to detect LEL/H2S/CO2/O2 levels. Ensure Nitrogen vendor has a working and calibrated detector as well that measures O2 levels. 12.) Pressure test lines upstream of well to approved sundry pressure or MPSP (Maximum Potential Surface Pressure), whichever is higher. Test lines downstream of well (from well to returns tank) to 1,500 psi. Perform visual inspection for any leaks. 13.) Bleed off test pressure and prepare for pumping nitrogen. 14.) Pump nitrogen at desired rate, monitoring rate (SCFM) and pressure (PSI). All nitrogen returns are to be routed to the returns tank. 15.) When final nitrogen volume has been achieved, isolate well from Nitrogen Pumping Unit and bleed down lines between well and Nitrogen Pumping Unit. 16.) Once you have confirmed lines are bled down, no trapped pressure exists, and no nitrogen has accumulated begin rig down of lines from the Nitrogen Pumping Unit. 17.) Finalize job log and discuss operations with Wellsite Manager. Document any lessons learned and confirm final rates/pressure/volumes of the job and remaining nitrogen in the transport. 18.) RDMO Nitrogen Pumping Unit and Liquid Nitrogen Transport. Kaitlyn Barcelona Hilcorp North Slope, LLC GeoTechnician 3800 Centerpoint Drive, Suite 1400 Anchorage, AK 99503 Tele: 907 777-8337 E-mail: kaitlyn.barcelona@hilcorp.com Please acknowledge receipt by signing and returning one copy of this transmittal Received By: Date: DATE: 10/27/2021 To: Alaska Oil & Gas Conservation Commission Natural Resource Technician 333 W 7th Ave Suite 100 Anchorage, AK 99501 DATA TRANSMITTAL Paxton 2 (PTD 207-164) Plug/CBL 8/28/2021 Please include current contact information if different from above. 11/02/2021 1. Operations Abandon Plug Perforations Fracture Stimulate Pull Tubing Operations shutdown Performed: Suspend Perforate Other Stimulate Alter Casing Change Approved Program Plug for Redrill Perforate New Pool Repair Well Re-enter Susp Well Other: RWO to install SSSV 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: 3638, Total Depth measured 8,436 feet 7890 & 8022 feet true vertical 7,985 feet 3244 & 7782 feet Effective Depth measured 3,459 feet 889 & 3667 feet true vertical 3,015 feet 877 & 3219 feet Perforation depth Measured depth See Attached Schematic True Vertical depth See Attached Schematic Tubing (size, grade, measured and true vertical depth)3-1/2" 9.2# / L-80 3,627' MD 3,179' TVD Tripoint Hydraul & Pkr; 889' MD 877' TVD Packers and SSSV (type, measured and true vertical depth)ZXP Liner Pkr; TRSSSV 3,667' MD 3,219' TVD 128' MD/TVD 12. Stimulation or cement squeeze summary: Intervals treated (measured): Treatment descriptions including volumes used and final pressure:N/A 13. Prior to well operation: Subsequent to operation: 15. Well Class after work: Daily Report of Well Operations Exploratory Development Service Stratigraphic Copies of Logs and Surveys Run 16. Well Status after work: Oil Gas WDSPL Electronic Fracture Stimulation Data GSTOR GINJ SUSP SPLUG Sundry Number or N/A if C.O. Exempt: Taylor Wellman 777-8449 Contact Name:Jake Flora Authorized Title:Operations Manager Contact Email: Contact Phone:777-8442 jake.flora@hilcorp.com Senior Engineer:Senior Res. Engineer: 8,430psi Burst 3,060psi114' 1,478' 6,890psi 3,580psi Collapse 1,500psi 2,090psi 4,790psi 7,500psi Casing Structural 20" 10-3/4" 7-5/8" Length 93' 1,596' 3,881' Conductor Surface Intermediate Production Authorized Signature with date: Authorized Name: 0 Casing Pressure Liner 4,700' 1,493 7,934' 0 Representative Daily Average Production or Injection Data 17. I hereby certify that the foregoing is true and correct to the best of my knowledge. 321-370 80 Size 14. Attachments (required per 20 AAC 25.070, 25.071, & 25.283) 0 Gas-Mcf 0 STATE OF ALASKA ALASKA OIL AND GAS CONSERVATION COMMISSION REPORT OF SUNDRY WELL OPERATIONS 207-164 50-133-20573-00-00 4. Well Class Before Work:5. Permit to Drill Number: 3. Address: 2. Operator Name:Hilcorp Alaska, LLC 2640 Ninilchik Unit Paxton 2 N/A FEE TRACT, ADL-384372 3,902' Plugs Junk measured 3800 Centerpoint Dr Suite 1400 Anchorage, AK 99503 Ninilchik Unit - Beluga/Tyonek Gas PoolN/A measured TVD Tubing PressureOil-Bbl measured true vertical Packer 4-1/2" 3,453' WINJ WAG 1,117 Water-Bbl MD 114' 1,617' 8,385' 0 t Fra O 6. A G L PG , R V Form 10-404 Revised 3/2020 Submit Within 30 days of Operations By Meredith Guhl at 1:01 pm, Sep 30, 2021 Digitally signed by Taylor Wellman (2143) DN: cn=Taylor Wellman (2143), ou=Users Date: 2021.09.30 12:53:25 -08'00' Taylor Wellman (2143) BJM 11/4/21 SFD 10/5/2021 RBDMS HEW 10/1/2021 DSR-9/30/21 Rig Start Date End Date 8/28/21 9/8/21 08/31/2021 - Tuesday Daily Operations: Hilcorp Alaska, LLC Well Operations Summary API Number Well Permit NumberWell Name Paxton 2 50-133-20573-00-00 207-164 08/28/2021 - Saturday 08/30/2021 - Monday PJSM with crew on moving into location, conducting RU ops. Sent in AOGCC notification for request to witness BOP test. Install BPV and test dart into hanger. ND tree. NU 13-5/8" BOP stack: 13-5/8" Annular, 2-7/8" x 5-1/2" Variable rams, Shear ram. Continue with staging in and rigging up equipment while torqueing BOP stack. Derrick stood, all equipment in place. Received response from AOGCC, witness waived. RIH WITH 7' 1-11/16" WB, 1-11/16" GG AND #10 ST WITH 3-1/2" WRP, 14' FROM CCL TO TOP OF PLUG, SET PLUG AT 3,250', CCL DEPTH = 3,236', POOH BLEED WELL DOWN AND STARTED FILLING HOLE WITH WATER. RIH WITH 1-11/16" CBL TOOLS TO 3,225', LOG FROM 3,225' TO SURF, TOC @ 1,240'. 08/29/2021 - Sunday Mobe non-permitted rig support equipment f/ KDU 01 to Paxton 2 pad. RIH, set 3" Catcher sub atop of WRP at ~3,250'. Continue mobilizing non-permitted equipment from KGF to Paxton 2. Mobe non-permitted rig support equipment f/ KDU 01 to Paxton 2 pad. Pre-spud meeting with crew on planned operations for Paxton 2. Discuss safety concerns with completing RU, BOP test, pulling tubing. Complete RU of rig floor, prep test joint for BOP test, record stack measurements, function test stack and fill. Conduct BOP test with 3-1/2" test joint to 250 psi low / 2,500 psi high. Test Annular element to 250 psi low / 2,500 psi high. Test all gas monitoring alarms and PVTs. State witness waived by AOGCC rep Jim Regg. Clear and clean rig floor. Pull test dart and BPV. Back out lockdown screws. RU E-line crew. Have discussion on tools going into well, discuss EMA (anchoring system for cutter) with ODE. Decide to mobilize tubing punch as added precaution. Continue with prepping tools for two runs. Wait on tubing punch section to mobilize to location. Attempt to place string in tension while waiting, pull to 23k (10k over string and block weight) and cannot get any movement (TOC at ~1,210'). MU tubing punch, verify measurements. RIH with E-line BHA #1 of weight bar, CCL, tubing punch (15 shots per foot, 2.9' punch section). Log across section, confirm with ODE. In conformance with State approval, set top shot at 1,016', 1' below collar at 1,015'. Good indication of fire. Break circulation while POH, instant returns - clean. LD BHA. Swap out to E-Line BHA #2 of weight bar, CCL, RCT w/ EMA anchors. Difficulty making up one of subs, cross-threading. Swap out tools. Sent in notice to AOGCC of MIT-IA and MIT-Tbg at 1700 hrs. RIH and log across section, pick up to set anchors on depth at 1,017.5', place RCT at 1,021' (6' below collar). String in 4k tension, set anchors, conduct firing, good indication of firing. POH with E-line, RD sheave from blocks. Pick up on string to ensure free, did not pull initially at 21k. Double-check hanger, all good. Stage up to 25k, then 30k, slack off and come up to 31k again, free. Pull hanger to floor, break off and lay down for re-dress. Hang off string, secure well. Secure location for evening. set top shot at 1,016', 1' below collar at 1,015'. Good indication of fire. B Sent in AOGCC notification for request to witness BOP test. Conduct BOP test with 3-1/2" test joint to 250 psi low / 2,500 psi high. State witness waived by AOGCC rep Jim Regg. Sent in notice to AOGCC of MIT-IA and MIT-Tbg at 1700 hrs. RCT at 1,021' (6' below collar). String in 4k tension, set anchors, conduct firing, good indication of firing. Rig Start Date End Date 8/28/21 9/8/21 Daily Operations: Hilcorp Alaska, LLC Well Operations Summary API Number Well Permit NumberWell Name Paxton 2 50-133-20573-00-00 207-164 09/08/2021 - Wednesday Perform AOGCC SSSV test, PASSED. 09/01/2021 - Wednesday Safety meeting with crew, discuss today's operations, emphasis on standing back 3-1/2" with new man in Derrick, sharp edges on perforated / cut tubing. POH with 30 jts of 3-1/2" IBT tubing string, lay down cut joint. Cut is 4.9'. conducted test run with Overshot over cut piece and it slipped over easily. Stage in completion equipment. MU, RIH with new completion: Non-sealing overshot with brass shear pins to 2,400 lbs, full jt 3-1/2" L-80 IBT, X-nipple with RHC profile, full jt 3-1/2", Tripoint Hydraulic Packer pinned to 46k, 23 full jts, Giant TRSSSV assembly with control line and 9 clamps, 4 full jts. RIH on last full jt, observe shear indication and no-go. PU, swap out pups on hanger, land assembly. Land out, terminate control line, test to 4,000 psi, good test. Drop ball and rod. RILDS, test hanger void to 5,000 psi, good test test. Pressure up to set packer. Bring pressure up to 3,800 psi, hold for 30 minutes. Bleed pressure off tubing. RU Slickline. RIH to retrieve Ball and Rod. Slickline swap out tools, RIH to pull RHC profile. POH with RHC profile. RIH and conduct 2.75" drift past completion to 1,100', no issues on drift pass. Line up to conduct MIT-IA. Pressure up to 1,750 psi, solid test with no bleed Bleed off, line up to pressure test tubing. First attempt, bled ~500 psi in 4 minutes. Line up different fluid path, make second attempt, fail with ~500 psi drop in 3 min. Walk lines during second test, slight leak at Head Pin. Tighten, attempt third test ~500 psi drop in 4 minutes. Observe leak at MU of landing jt, tighten. Attempt to pressure up, instant bleed and O-ring at landing jt blown. Change out O-ring at landing jt connection. Fluid pack line. Bring up pressure to 1,740 psi, bled 75 psi in 30 minutes for good test. Clear and clean floor and test area of test equipment. Install TWC. Remove rig floor, load equipment onto trailers. Suck out pit, BOP stack, cellar area. 09/02/2021 - Thursday Safety meeting with crew, emphasis on wet weather conditions, heavy loads while rigging down. ND BOP. NU Tree, test to 5k psi, good test. Well secure, notified Field Operator that TRSSSV is in closed position. Slip and Cut drilling line. Scope down and lay over Derrick. Continue with rig down operations, load out trailers for move to Beaver Creek. Perform AOGCC SSSV test, PASSED. g up pressure to 1,740 psi, bled 75 psi in 30 minutes for good test. Pressure up to set packer. Bring pressure up to 3,800 psi, hold for 30 minutes. Line up to conduct MIT-IA. Pressure up to 1,750 psi, solid test with no bleed Bleed off, line up to pressure test tubing. RIH with new completion: Non-sealing overshot KOP @ 325' MD/TVD Build 4.0 deg/100' from 487-1362' MD Hold 38.35 deg from 1362-2668' MD Drop 3.0 deg/100' to 3918' MD Hold 0 deg from 3918' to TD at 8448' MD Paxton #2 Ninilchik Unit 746' FNL, 2,914' FEL Sec. 13, T1S, R14W, S.M. * ZXP Liner Packer with 6' Tieback Extension @ 3,667' MD (Top) * Flex-Lock Liner Hanger @ 3701' MD (Top) KB:21' AGL (171' KB Elev) API #:50-133-20573-00-00 Permit #:207-1640 Property Des:ADL - 384372 WBS #:DD.07.16241.CAP X= 206,414.356 (NAD27) Y=2,230,614.114 (NAD27) Lat:60º 05' 43.394" N Long:151º 36' 38.544" W Spud:06:30 hrs 01/18/2008 TD:06:00 hrs 2/1/2008 Rig Released:18:00 hrs 2/15/2008 TD: 8,436' MD 7,985' TVD Expro Radial Bond Log (2/19/08) Conductor 20" K-55 133 ppf PE Top Bottom MD 0' 114 TVD 0' 114' Surface Casing 10-3/4" J-55 45.5 #, BTC MD 0' 1,617' TVD 0' 1,487' 13-1/2" hole with 457sks (202 bbls) 12 ppg 100% returns and 40 bbls, Cmt to surface. Intermediate Casing 7-5/8" L-80 29.7 ppf BTC Top Bottom MD 0' 3,902' TVD 0' 3,453' 9-7/8" hole with 265sks (99 bbls) 12.0 ppg Type 1 Lead Cmt & 150sks (31 bbls) 15.8 ppg Class G Cmt Tail. Slight interface returns to surface. Production Liner 4-1/2" L-80 12.6 ppf Hydril 563 Top Bottom MD 3,685' 8,385' TVD 3,237' 7,934' 6-3/4" hole Cmt w/ 284 sks (210 bbls) 10.5 ppg Class G, 100% Returns. 25 bbls cmt returns. Tubing 3-1/2" L-80 9.2 ppf IBT-M (09-01-21) Top Bottom MD 0' 952' TVD 0' 905' 3-1/2" L-80 9.2 ppf IBT-M (01-29-21) Top Bottom MD 952' 3,627' (float collar at 3,606') TVD 905' 3,219' PBTD: 3,459' MD 3,015' TVD FISH DETAIL 36' of 3-3/8" HSC Perf guns Tagged @ 7,602' MD w/ 2.82" GR (1/19/10) Tagged @ 7,782' MD (12/22/08) Well Name & Number: Municipality: Perforations (MD): Angle @ KOP & Depth: Date Completed: Revised by: Paxton # 2 Kenai Peninsula Borough 3,307- 7,574' ~ 2.5º / 100 ft, 325' - 1,300' 3/6/2008 Donna Ambruz Lease: State: Perf (TVD): Ninilchik Unit, ADL - 384372 Country: Angle @ Perfs: Ground Level: Revision Date: Alaska USA 2,871' - 7,123' ~ 1.5º RKB:150' (AMSL)21' (AGL) 9/20/21 CIBP @ 8,022' CIBP @ 7,890' SCHEMATIC 7-5/8 TOC @ 1215' (1-27-21 CBL) 3459' PBTD from E-Line 3609' wiper plug (31.4bbls disp) 3638' CIBP (set 1/28/21) 3-1/2 TOC @ 1240' (02-03-21 CBL) 128' TRSSSV (Giant) 9/1/21 918' X Nipple 9/1/21 952' Overshot 9/1/21 889' Tripoint Hydraulic Pkr 9/1/21 Tyonek Beluga MEMORANDUM TO: Jim Regg P.I. Supervisor FROM: Bob Noble Petroleum Inspector `� C, -r( ( ( -7( 7j,, ( Well Name NINILCHIK UNIT PAXTON 2 Insp Num: mitRCN210901170718 Rel Insp Num: NON -CONFIDENTIAL State of Alaska Alaska Oil and Gas Conservation Commission DATE: Thursday, September 2, 2021 SUBJECT: Mechanical Integrity Tests Hilcorp Alaska, LLC 2 NINILCHIK UNIT PAXTON 2 Src: Inspector Reviewed By: P.I. Supr Comm API Well Number 50-133-20573-00-00 Inspector Name: Bob Noble Permit Number: 207-164-0 Inspection Date: 9/1/2021 - Packer Depth Well 2 -Type Inj 1 N TVD Tubing PTD 2071640 - Type Test' SPT Test psi 1500 - IA BBL Pumped: 0.5 BBL Returned: 0.5 OA Interval OTHER P/F P Notes: This is a MIT -IA on new completion, to 1500 psi, Sundry 321-370 Pretest Initial 15 Min 30 Min 45 Min 60 Min 0 0 T- 0 0 0 - 1770 1750 - ! 1750 73 75 75 -� 75' Thursday, September 2, 2021 Page 1 of 1 MEMORANDUM TO: Jim Regg P.I. Supervisor FROM: Bob Noble Petroleum Inspector NON -CONFIDENTIAL State of Alaska Alaska Oil and Gas Conservation Commission DATE: Thursday, September 2, 2021 SUBJECT: Mechanical Integrity Tests Hilcorp Alaska, LLC 2 NINILCHIK UNIT PAXTON 2 Src: Inspector Reviewed By: P.I. SuprvL Comm Well Name NINILCHIK UNIT PAXTON 2 API Well Number 50-133-20573-00-00 Inspector Name: Bob Noble Permit Number: 207-164-0 Inspection Date: 9/1/2021 Insp Num: mitRCN210901171817 Rel Insp Num: Packer Depth Pretest Initial 15 Min 30 Min 45 Min 60 Min Well 2 Type Inj N TVD Tubing o 1740 1710 169a — PTD 20716ao Type Test' SPT -Test psi1500 IA r 0 _ o 0 0 BBL Pumped: 0.5 BBL Returned: 0.5 OA 74 74 - ! 74 74 Intervals OTHER p/F P Notes: This is a MIT -T on new completion, to 1500 psi, Sundry 321-370 Thursday, September 2, 2021 Page 1 of 1 From:McLellan, Bryan J (CED) To:Jacob Flora Cc:Robert O"Neal - (C) Subject:RE: [EXTERNAL] RE: Paxton 2 AOGCC 10-403 321-370 PTD 207-164 Approved 07-29-21 Date:Tuesday, August 31, 2021 1:12:00 PM Jake, You have approval to cut at 1000’ md. Bryan Bryan McLellan Senior Petroleum Engineer Alaska Oil & Gas Conservation Commission 333 W 7th Ave Anchorage, AK 99501 Bryan.mclellan@alaska.gov +1 (907) 250-9193 From: Jacob Flora <Jake.Flora@hilcorp.com> Sent: Tuesday, August 31, 2021 12:37 PM To: McLellan, Bryan J (CED) <bryan.mclellan@alaska.gov> Cc: Robert O'Neal - (C) <roneal@hilcorp.com> Subject: RE: [EXTERNAL] RE: Paxton 2 AOGCC 10-403 321-370 PTD 207-164 Approved 07-29-21 Hi Bryan, We had a similar RWO on Paxton 10 where we cut and couldn’t pull, the request to move up-hole 100’ is purely based off our Paxton 10 experience and trying to minimize risk of having any debris near the cut depth. I’ve copied our WSM Rob O’Neal who will be looking for final direction. Please advise of acceptable, Thanks, Jake From: McLellan, Bryan J (CED) <bryan.mclellan@alaska.gov> Sent: Tuesday, August 31, 2021 11:58 AM To: Jacob Flora <Jake.Flora@hilcorp.com> Subject: [EXTERNAL] RE: Paxton 2 AOGCC 10-403 321-370 PTD 207-164 Approved 07-29-21 Jake, Why do you want to cut tubing shallower? You appear to have a clean cement top at +/-1238’ MD, so why not cut 100’ above that depth as written in the program? For production packer, deeper is better. Bryan McLellan Senior Petroleum Engineer Alaska Oil & Gas Conservation Commission 333 W 7th Ave Anchorage, AK 99501 Bryan.mclellan@alaska.gov +1 (907) 250-9193 From: Jake Flora <Jake.Flora@hilcorp.com> Sent: Monday, August 30, 2021 11:41 AM To: McLellan, Bryan J (CED) <bryan.mclellan@alaska.gov> Subject: FW: Paxton 2 AOGCC 10-403 321-370 PTD 207-164 Approved 07-29-21 Hi Bryan, On our Paxton 2 RWO we ran a new CBL to make sure the upcoming RCT cut is above TOC. The cemented 3.5” TOC is just below 1200’ and hasn’t changed from the last CBL. We plan on cutting the tubing at ~1000’ (in the Sundry I said 1100’). Are you OK with this small depth change? Thanks, Jake From: Donna Ambruz <dambruz@hilcorp.com> Sent: Thursday, July 29, 2021 9:55 AM To: Jake Flora - (C) <Jake.Flora@hilcorp.com> Cc: Taylor Wellman <twellman@hilcorp.com> Subject: Paxton 2 AOGCC 10-403 321-370 PTD 207-164 Approved 07-29-21 FYI – Please distribute as necessary. Thank you. Donna Ambruz Operations/Regulatory Tech Kenai Asset Team Hilcorp Alaska, LLC 3800 Centerpoint Drive, Suite 1400 Anchorage, AK 99503 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 RWO to install SSSV 2.Operator Name:4.Current Well Class:5. Permit to Drill Number: Exploratory Development 3.Address:Stratigraphic Service 6.API Number: 7.If perforating:8. Well Name and Number: What Regulation or Conservation Order governs well spacing in this pool? Will planned perforations require a spacing exception?Yes No 9. Property Designation (Lease Number):10. Field/Pool(s): 11. Total Depth MD (ft): Total Depth TVD (ft): Effective Depth MD: Effective Depth TVD: MPSP (psi):Plugs (MD):Junk (MD): 8,436'3685' Casing Collapse Structural Conductor 1,500 psi Surface 2,090 psi Intermediate 4,790 psi Production Liner 7,500 psi Packers and SSSV Type:Packers and SSSV MD (ft) and TVD (ft): 12. Attachments: Proposal Summary Wellbore schematic 13.Well Class after proposed work: Detailed Operations Program BOP Sketch Exploratory Stratigraphic Development Service 14. Estimated Date for 15.Well Status after proposed work: Commencing Operations:OIL WINJ WDSPL Suspended 16.Verbal Approval:Date:GAS WAG GSTOR SPLUG Commission Representative: GINJ Op Shutdown Abandoned Taylor Wellman 777-8449 Contact Name: Jake Flora Operations Manager Contact Email: Contact Phone: 777-8442 Date: Conditions of approval: Notify Commission so that a representative may witness Sundry Number: Plug Integrity BOP Test Mechanical Integrity Test Location Clearance Other: Post Initial Injection MIT Req'd? Yes No Spacing Exception Required? Yes No Subsequent Form Required: APPROVED BY Approved by: COMMISSIONER THE COMMISSION Date: Comm. Comm. Sr Pet Eng Sr Pet Geo Sr Res Eng jake.flora@hilcorp.com 7,985'3459'3015'963 3638', 7890', 8022' Perforation Depth TVD (ft): Tubing Size: Length Size COMMISSION USE ONLY Authorized Name: 8,430 psi Tubing Grade:Tubing MD (ft): See Attached Schematic STATE OF ALASKA ALASKA OIL AND GAS CONSERVATION COMMISSION APPLICATION FOR SUNDRY APPROVALS 20 AAC 25.280 FEE TRACT, ADL-384372 207-164 50-133-20573-00-00 Paxton #2 Ninilchik Unit - Beluga/Tyonek Gas Pool CO 701C Hilcorp Alaska, LLC 3800 Centerpoint Dr, Suite 1400 Anchorage Alaska 99503 PRESENT WELL CONDITION SUMMARY TVD Burst 3,627 MD 6,890 psi 3,060 psi 3,580 psi 114' 1,478' 3,453' 114' 1,617' 20" 10-3/4" 93' 7,934' ZXP Liner Packer; N/A Perforation Depth MD (ft): 7-5/8"3,881' 1,596' 3,902' See Attached Schematic 4-1/2" 3,667' MD/3,219' TVD; N/A 9.3# / L-80 Authorized Title: 17. I hereby certify that the foregoing is true and the procedure approved herein will not be deviated from without prior written approval. Authorized Signature: September 1, 2021 8,385'4,700' 3-1/2" Perforate Repair Wepair Well Exploratory Stratigraphic Development Service BOP TestMechanical Integrity Test Location Clearance No No Wellbore schematic Form 10-403 Revised 3/2020 Approved application is valid for 12 months from the date of approval. By Meredith Guhl at 8:23 am, Jul 26, 2021 321-370 Digitally signed by Jennifer Starck (4520) DN: cn=Jennifer Starck (4520), ou=Users Date: 2021.07.23 16:04:14 -08'00' Jennifer Starck (4520) X DLB 07/26/2021 DSR-7/26/21 XX BOP Test to 2500 psi. Annular test to 2000 psi. MIT-T and MIT-IA to 1500 psi. Provide 24 hrs notice for AOGCC witness. BJM 7/28/21 10-404 dts 7/28/2021 JLC 7/28/2021 Jeremy Price Digitally signed by Jeremy Price Date: 2021.07.28 22:20:34 -08'00' RBDMS HEW 7/30/2021 Well Prognosis Well: Paxton 2 Date: 7/23/2021 Well Name: Paxton 2 API Number: 50-133-20573-00-00 Current Status: Gas Well Leg: N/A Estimated Start Date: 9/01/2020 Rig: 401 Reg. Approval Req’d? 10-403 Sundry Number: Regulatory Contact: Donna Ambruz 777-8305 Permit to Drill Number: 207-164 First Call Engineer: Jake Flora (907) 777-8442 (O) (720) 988-5375 (C) Second Call Engineer: Ted Kramer (907) 777-8420 (O) (907) 378-7323 (C) AFE Number Maximum Expected BHP: ~ 1233 psi @ 2705’ TVD Based on RFT Data Max. Potential Surface Pressure: ~ 963 psi Based on BHP minus 0.1 psi/ft gas Gradient Brief Well Summary: Paxton 2 was drilled and completed in 2008 in the Tyonek gas sands. A coil tubing velocity string was ran in May 2010 to aid the surfacing of water. August 2020 it while attempting to remove the velocity string it parted at 2704’. A subsequent fishing attempt in November 2020 recovered an additional ~535’ of coil velocity string and after several attempts left the top of the string with a fishing BHA at 3244’. A January 2021 RWO pulled the 4.5” tubing from the seal assembly, plugged back with a CIBP, and ran 3.5” tubing to 3627’ and cemented in place. The Beluga 92 was successfully completed followed by running a 3.5” packer with K-valve at 121’. Objective: The purpose of this Sundry is to install a TRSSSV to the well by cutting and pulling the 3.5” tubing, and running an overshot, packer, and surface controlled TRSSSV. The work will satisfy the requirements detailed in Sundry 321-098 requiring a SSSV within 6 months after installing a K-valve. Wellbore: - Max deviation is 39 degrees at 2341’ - 3-1/2 x 7-5/8 MITIA Passed to 1500 psi (01/30/2021) - 3-1/2 x 7-5/8 TOC at 1240’ (2/3/21 CBL) Pre-Rig Work: 1. MIRU Slickline, PT Lubricator. 2. Pull K-valve. 3. Pull 3-1/2 retrievable packer from 121’ (packer has a 3” GS profile and 25k shear ring, recommended to pick up 10-15’ of weight bar). 4. Drift and tag TD with 2.5” gauge ring. 5. MIRU E-Line, PT Lubricator. 6. Set WRP at 3250’ (~22 degrees deviation). 7. Set catcher sub over WRP. 8. MIT WRP to 1000 psi with water. Well Prognosis Well: Paxton 2 Date: 7/23/2021 9. Log new CBL to determine exact 3-1/2 x 7-5/8 TOC. 10. Cut 3-1/2” tubing above TOC at ~1100’ (cut 100’ above the clean TOC). Rig 401 Procedure: 11. MIRU 401 workover rig. Provide 24hr notice to AOGCC of BOP Test. 12. Ensure well is loaded with water. 13. Set TWC, ND Tree. 14. NU BOP and test to 250 psi low & 2,500 psi high, annular to 250 psi low & 2,000 psi high. Record accumulator pre-charge pressures and chart tests. a. Perform Test. b. Test rams on 3-1/2” test joint. c. Submit completed form 10-424 to AOGCC within 5 days of BOPE test. 15. Pull and lay down 3-1/2 tubing. 16. Run new completion: a. Overshot w shear screws (non-sealing) b. Full joint c. X-nipple w RHC d. Full joint e. 3-1/2 x 7-5/8 hydraulic set retrievable packer f. 3-1/2 tubing to surface g. Surface controlled TRSSSV @ 100’ with control line to surface 17. Space out, land hanger. 18. Drop ball and rod, pressure up to set packer. 19. RU slickline, pull ball and rod. 20. MITIA to 1500 psi. 21. MIT tubing to 1500 psi (this tests the small annulus below the packer). 22. RDMO. Post Rig Procedure: 23. RU slickline, PT lubricator. 24. Pull RHC. MIT tubing to 1500 psi MITIA to 1500 psi. Provide 24 hr notice for AOGCC witness. Well Prognosis Well: Paxton 2 Date: 7/23/2021 25. Swab well to ~1500’ (slightly overbalanced with BHP). 26. Pull catcher sub from ~3250’. 27. Pull WRP from ~3250’. 28. Continue to swab to kick well off. 29. Return to production. Attachments: 1. Current Well Schematic 2. Proposed Well Schematic 3. Rig 401 BOP Schematic 4. RWO Change Form Test Safety valve system within 5 days of returning to production. Formation Tops: Formation Depth (MD)Depth (SSTVD) Beluga Tyonek TKT 3,946' 3,328 Tyonek T2 4,896' 4,278' Tyonek T3 6,048' 5,430' TD 8,448' 8,000' KOP @ 325' MD/TVD Build 4.0 deg/100' from 487-1362' MD Hold 38.35 deg from 1362-2668' MD Drop 3.0 deg/100' to 3918' MD Hold 0 deg from 3918' to TD at 8448' MD Paxton #2 Ninilchik Unit 746' FNL, 2,914' FEL Sec. 13, T1S, R14W, S.M. * ZXP Liner Packer with 6' Tieback Extension @ 3,667' MD (Top) * Flex-Lock Liner Hanger @ 3701' MD (Top) KB:21' AGL (171' KB Elev) API #:50-133-20573-00-00 Permit #:207-1640 Property Des:ADL - 384372 WBS #:DD.07.16241.CAP X= 206,414.356 (NAD27) Y=2,230,614.114 (NAD27) Lat:60º 05' 43.394" N Long:151º 36' 38.544" W Spud:06:30 hrs 01/18/2008 TD:06:00 hrs 2/1/2008 Rig Released:18:00 hrs 2/15/2008 TD: 8,436' MD 7,985' TVD Expro Radial Bond Log (2/19/08) Conductor 20" K-55 133 ppf PE Top Bottom MD 0' 114 TVD 0' 114' Surface Casing 10-3/4" J-55 45.5 ppf BTC MD 0' 1,617' TVD 0' 1,487' 13-1/2" hole with 457sks (202 bbls) 12 ppg 100% returns and 40 bbls, Cmt to surface. Intermediate Casing 7-5/8" L-80 29.7 ppf BTC Top Bottom MD 0' 3,902' TVD 0' 3,453' 9-7/8" hole with 265sks (99 bbls) 12.0 ppg Type 1 Lead Cmt & 150sks (31 bbls) 15.8 ppg Class G Cmt Tail. Slight interface returns to surface. Production Liner 4-1/2" L-80 12.6 ppf Hydril 563 Top Bottom MD 3,685' 8,385' TVD 3,237' 7,934' 6-3/4" hole Cmt w/ 284 sks (210 bbls) 10.5 ppg Class G, 100% Returns. 25 bbls cmt returns. Tubing (Ran 1-29-21) 3-1/2" L-80 9.2 ppf IBT-M Top Bottom MD 0' 3,627' (float collar at 3606') TVD 0' 3,219' PBTD: 3,459' MD 3,015' TVD FISH DETAIL 36' of 3-3/8" HSC Perf guns Tagged @ 7,602' MD w/ 2.82" GR (1/19/10) Tagged @ 7,782' MD (12/22/08) Well Name & Number: Municipality: Perforations (MD): Angle @ KOP & Depth: Date Completed: Revised by: Paxton # 2 Kenai Peninsula Borough 3,307- 7,574' ~ 2.5º / 100 ft, 325' - 1,300' 3/6/2008 Donna Ambruz Lease: State: Perf (TVD): Ninilchik Unit, ADL - 384372 Country: Angle @ Perfs: Ground Level: Revision Date: Alaska USA 2,871' - 7,123' ~ 1.5º RKB:150' (AMSL)21' (AGL) 04-09-21 CIBP @ 8,022' CIBP @ 7,890' SCHEMATIC 7-5/8 TOC @ 1215' (1-27-21 CBL) 3459' PBTD from E-Line 3609' wiper plug (31.4bbls disp) 3638' CIBP (set 1/28/21) 3-1/2 TOC @ 1240' (02-03-21 CBL) 3-1/2" Retrievable Packer w/ 1-3/8" RN Nipple @ 121' 03/04/21 2-3/8" Lock & Weatherford PB-Valve @ 128' 03/14/21 Formation Tops: Formation Depth (MD)Depth (SSTVD) Beluga Tyonek TKT 3,946' 3,328 Tyonek T2 4,896' 4,278' Tyonek T3 6,048' 5,430' TD 8,448' 8,000' KOP @ 325' MD/TVD Build 4.0 deg/100' from 487-1362' MD Hold 38.35 deg from 1362-2668' MD Drop 3.0 deg/100' to 3918' MD Hold 0 deg from 3918' to TD at 8448' MD Paxton #2 Ninilchik Unit 746' FNL, 2,914' FEL Sec. 13, T1S, R14W, S.M. * ZXP Liner Packer with 6' Tieback Extension @ 3,667' MD (Top) * Flex-Lock Liner Hanger @ 3701' MD (Top) KB: 21' AGL (171' KB Elev) API #: 50-133-20573-00-00 Permit #: 207-1640 Property Des: ADL - 384372 WBS #: DD.07.16241.CAP X= 206,414.356 (NAD27) Y= 2,230,614.114 (NAD27) Lat: 60º 05' 43.394" N Long: 151º 36' 38.544" W Spud: 06:30 hrs 01/18/2008 TD: 06:00 hrs 2/1/2008 Rig Released: 18:00 hrs 2/15/2008 TD: 8,436' MD 7,985' TVD Expro Radial Bond Log (2/19/08) Conductor 20" K-55 133 ppf PE Top Bottom MD 0' 114 TVD 0' 114' Surface Casing 10-3/4" J-55 45.5 ppf BTC MD 0' 1,617'TVD 0' 1,487' 13-1/2" hole with 457sks (202 bbls) 12 ppg 100% returns and 40 bbls, Cmt to surface. Intermediate Casing 7-5/8" L-80 29.7 ppf BTC Top Bottom MD 0' 3,902' TVD 0' 3,453' 9-7/8" hole with 265sks (99 bbls) 12.0 ppg Type 1 Lead Cmt & 150sks (31 bbls) 15.8 ppg Class G Cmt Tail. Slight interface returns to surface. Production Liner 4-1/2" L-80 12.6 ppf Hydril 563 Top Bottom MD 3,685' 8,385' TVD 3,237' 7,934' 6-3/4" hole Cmt w/ 284 sks (210 bbls) 10.5 ppg Class G, 100% Returns. 25 bbls cmt returns. Tubing (Ran 1-29-21) 3-1/2" L-80 9.2 ppf IBT-M Top Bottom MD 0' 3,627' (float collar at 3606') TVD 0' 3,219' PBTD: 3,459' MD 3,015' TVD FISH DETAIL 36' of 3-3/8" HSC Perf guns Tagged @ 7,602' MD w/ 2.82" GR (1/19/10) Tagged @ 7,782' MD (12/22/08) Well Name & Number: Municipality: Perforations (MD): Angle @ KOP & Depth: Date Completed: Revised by: Paxton # 2 Kenai Peninsula Borough 3,307- 7,574' ~ 2.5º / 100 ft, 325' -1,300' 3/6/2008 Jake Flora Lease: State: Perf (TVD): Ninilchik Unit, ADL -384372 Country: Angle @ Perfs: Ground Level: Revision Date: Alaska USA 2,871' - 7,123' ~ 1.5º RKB:150' (AMSL)21' (AGL) 7-21-21 CIBP @ 8,022' CIBP @ 7,890' PROPOSED 7-5/8 TOC @ 1215' (1-27-21 CBL) 3459' PBTD from E-Line 3609' wiper plug (31.4bbls disp) 3638' CIBP (set 1/28/21) 3-1/2 TOC @ 1240' (02-03-21 CBL) ~100' SCSSV ~1060' 3-1/2 tubing~1060' hydraulic ret pkrfull joint 3-1/2x-nipplefull joint 3-1/2~1100' overshot The picture can't be displayed.The picture can't be displayed.The picture can't be displayed.The picture can't be displayed. 13-5/8"Spherical Annular Height: 46" Weight: 12,806 13-5/8"LWS Double BOP Height: 37" Width: 93" Weight 9,900 lbs. TOP RAMS 2-7/8" TO 5-1/2" MULTI- RAMS BOTTOM RAMS BLIND RAMS 13-5/8"Mud Cross W/ 4- 1/16" outlets Height:28.5" Width 31" Dual 4-1/16" Manual Gate valves W/ DSA to 2-1/16" 4-1/16" Manual Gate valve & 4-1/16" HCR W/ DSA to 2-1/16" Full Mud Cross Assy. width w/ valves installed Width: 98.5" Weight: 2200 lbs. Kill side Choke side Height Addition for Ring Gaskets: 0" BOP Total Height: 111.5" BOP Total weight: 24,906 lbs. 13-5/8" 5m BOP Package W/ 4-1/16" Valves Hilcorp Alaska, LLC Hilcorp Alaska, LLC Changes to Approved Rig Work Over Sundry Procedure Subject: Changes to Approved Sundry Procedure for Well Paxton 2 (PTD 207-164) Sundry #: Any modifications to an approved sundry will be documented and approved below. Changes to an approved sundry will be communicated to the AOGCC by the rig workover (RWO) “first call” engineer. AOGCC written approval of the change is required before implementing the change. Sec Page Date Procedure Change New 403 Required? Y / N HAK Prepared By (Initials) HAK Approved By (Initials) AOGCC Written Approval Received (Person and Date) Approval: Asset Team Operations Manager Date Prepared: First Call Operations Engineer Date David Douglas Hilcorp Alaska, LLC Geotechnician 3800 Centerpoint Drive, Suite 1400 Anchorage, AK 99503 Tele: (907) 777-8337 E-mail: david.douglas@hilcorp.com Please acknowledge receipt by signing and returning one copy of this transmittal or FAX to 907 777.8510 Received By: Date: Hilcorp North Slope, LLC Date: 05/27/2021 To: Alaska Oil & Gas Conservation Commission Natural Resource Technician 333 W 7th Ave Suite 100 Anchorage, AK 99501 SFTP DATA TRANSMITTAL: FTP Folder Contents: Log Print Files and LAS Data Files: Well API # PTD # Date Log Type Logging Company KALOTSA 1 50133206570000 216132 3/27/2021 SET PATCH/GAMMA RAY Yellowjacket KALOTSA 1 50133206570000 216132 4/23/2021 PERF GAMMA RAY / GPT Yellowjacket KALOTSA 2 50133206590000 216155 4/10/2021 PERF GAMMA RAY Yellowjacket PAXTON 2 50133205730000 207164 2/23/2021 PERF GAMMA RAY Yellowjacket PAXTON 9 50133206470000 214173 3/19/2021 PERF GAMMA RAY Yellowjacket PAXTON 9 50133206470000 214173 4/10/2021 PERF GAMMA RAY Yellowjacket PAXTON 9 50133206470000 216132 4/23/2021 PERF GAMMA RAY Yellowjacket PAXTON 10 50133206910000 220064 4/13/2021 SET WRP / CCL Yellowjacket PAXTON 10 50133206910000 220064 4/20/2021 SET WRP / CCL Yellowjacket SD-1A 50133100020100 185208 4/27/2021 PERF GAMMA RAY / GPT Yellowjacket Please include current contact information if different from above. PTD: 2071640 E-Set: 35204 1. Operations Abandon Plug Perforations Fracture Stimulate Pull Tubing Operations shutdown Performed: Suspend Perforate Other Stimulate Alter Casing Change Approved Program Plug for Redrill Perforate New Pool Repair Well Re-enter Susp Well Other: N2, cement pkr, K-Valve SSSV 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: 3638, Total Depth measured 8,436 feet 7890 & 8022 feet true vertical 7,985 feet 3244 & 7782 feet Effective Depth measured 3,459 feet 121 & 3667 feet true vertical 3,015 feet 121 & 3219 feet Perforation depth Measured depth See Attached Schematic True Vertical depth See Attached Schematic Tubing (size, grade, measured and true vertical depth)3-1/2" 9.2# / L-80 3,627' MD 3,179' TVD Ret Pkr; 121' MD 121' TVD Packers and SSSV (type, measured and true vertical depth)ZXP Liner Pkr; N/A 3,667' MD 3,219' TVD N/A; N/A 12. Stimulation or cement squeeze summary: Intervals treated (measured): Treatment descriptions including volumes used and final pressure:N/A 13. Prior to well operation: Subsequent to operation: 15. Well Class after work: Daily Report of Well Operations Exploratory Development Service Stratigraphic Copies of Logs and Surveys Run 16. Well Status after work: Oil Gas WDSPL Electronic Fracture Stimulation Data GSTOR GINJ SUSP SPLUG Sundry Number or N/A if C.O. Exempt: Taylor Wellman 777-8449 Contact Name:Jake Flora Authorized Title:Operations Manager Contact Email: Contact Phone:777-8442 jake.flora@hilcorp.com Senior Engineer:Senior Res. Engineer: 8,430psi Burst 3,060psi114' 1,478' 6,890psi 3,580psi Collapse 1,500psi 2,090psi 4,790psi 7,500psi Casing Structural 20" 10-3/4" 7-5/8" Length 93' 1,596' 3,881' Conductor Surface Intermediate Production Authorized Signature with date: Authorized Name: 0 Casing Pressure Liner 4,700' 1,698 7,934' 0 Representative Daily Average Production or Injection Data 17. I hereby certify that the foregoing is true and correct to the best of my knowledge. 321-002, 321-065, 321-098 358 Size 14. Attachments (required per 20 AAC 25.070, 25.071, & 25.283) 0 Gas-Mcf 0 STATE OF ALASKA ALASKA OIL AND GAS CONSERVATION COMMISSION REPORT OF SUNDRY WELL OPERATIONS 207-164 50-133-20573-00-00 4. Well Class Before Work:5. Permit to Drill Number: 3. Address: 2. Operator Name:Hilcorp Alaska, LLC 00 Ninilchik Unit Paxton 2 N/A FEE TRACT, ADL-384372 3,902' Plugs Junk measured 3800 Centerpoint Dr Suite 1400 Anchorage, AK 99503 Ninilchik Unit - Beluga/Tyonek Gas PoolN/A measured TVD Tubing PressureOil-Bbl measured true vertical Packer 4-1/2" 3,453' WINJ WAG 0 Water-Bbl MD 114' 1,617' 8,385' 0 t Fra O Oth 6. A G L PG , R V Form 10-404 Revised 3/2020 Submit Within 30 days of Operations By Samantha Carlisle at 3:45 pm, Apr 09, 2021 Digitally signed by Taylor Wellman (2143) DN: cn=Taylor Wellman (2143), ou=Users Date: 2021.04.09 11:25:08 -08'00' Taylor Wellman (2143) SFD 4/15/2021 RBDMS HEW 4/13/2021 DSR-4/12/21BJM 7/28/21 Rig Start Date End Date 1/14/21 3/14/21 01/14/2021 - Thursday Yellow Jacket E-line MIRU. Conduct JSA & approve PTW. MU CCL and Jet cutter for 4-1/2" tubing. PT Lubricator. RIH with 4-1/2" jet cutter. Correct depth to 2,397' at injection mandrel from wellbore schematic. Tag top of fish at 3,230', top of fish is also at a tubing collar. Pick up 4' and cut tubing at 3,226'. POOH. RDMO. 01/23/2021 - Saturday 01/24/2021 - Sunday Safety Meeting with crew, emphasis on site orientation, RU operations, inclimate weather. Lay out Herculite, stage in Carrier, begin staging in support equipment, starting generator and heaters, laying out hoses and electrical. Install BPV, ND existing wellhead. Have to cut off 4 of the studs. Install Ported Barrier Sub. NU mud cross and then the 13-5/8" BOP with variable bore rams, Blinds and Annular. Install Choke and Kill lines. Turn over to Night Watch for monitoring location. Night Watch to torque BOP studs. Safety Meeting with crew, emphasis on completing location prep, preparing test joints for BOP test. Check equipment. Install Kill Line to Standpipe valve. Build 2-7/8" test joint. Mount rig sensors. Install stairs. Quadco rep on site, testing gas alarms and PVT sensors. Test 13-5/8" BOP with AOGCC Rep Jeff Jones on site to witness. BOP configuration: Annular, 2- 7/8" x 5-1/2" VBRs, Blind Rams, Mud Cross with HCR choke and manual Kill Lines. Test with 2-7/8" and 4-1/2" test joints to 250 psi low / 2,500 psi high. Conduct Accumulator Drawdown test. Pull Blanking Sub. Pump through BPV at 1.5 to 2 bpm down tubing taking returns from annulus until returns clean up (50 bbls away). Monitor well, dead. Pull BPV. Install handrails, mobilize equipment to pull tubing, install stairs. Install Landing Joint to pull hanger. RU bales and elevator, mobilize tongs to rig floor. Move in laydown machine. Stage in and RU spooling machine. Conduct pre-spud with crew. Attempt to pull hanger. Calculated string weight 41k. Stage up to 120k, ~5' of pipe stretch. Repeat, gaining about 6" at a time with each pick up at 125k, total gain of ~3'. PU to 130k, no movement. RU Kelly hose, stage in Annular and close bag. Circulate while in tension with 82k PUW. PU to 135k, movement of ~6'. PU to 142k, steady gain on pull, weight dropped to 115k. Pull hanger above floor, terminate chemical injection line. Break off from XO pup, lay down. Secure well. Turn over to Night Watch. Night Watch will charge batteries on APU for spooler, get it running. Fill pits, install circulating head pin for reverse circulation in morning. Stage thread protectors for LD of 4-1/2". Daily Operations: Hilcorp Alaska, LLC Well Operations Summary API Number Well Permit NumberWell Name Paxton 2 50-133-20573-00-00 207-164 Pull hanger above floor, cut tubing at 3,226' Rig Start Date End Date 1/14/21 3/14/21 Daily Operations: Hilcorp Alaska, LLC Well Operations Summary API Number Well Permit NumberWell Name Paxton 2 50-133-20573-00-00 207-164 01/26/2021 - Tuesday Safety Meeting with crew and Wireline crew, emphasis on Wireline Ops, change in well plan with retrieval of coil and additional tubing. Check equipment, blow through circulation lines with air (very cold today). Open to well, on a vacuum. Line up for constant hole fill. RU Wireline rig. RIH with 6.61" gauge ring and junk basket. Several tags, POH and retrieve 5, 8, and 11 clamps respectively. Last run in, no bands, tag at 3,278'. Come out, 2.5 gallons mud/sand/coal. RIH with 6.0" LIB, tag at 3,284', slight scar on outer edge. RIH with 3.6" LIB, make it to 3,293' but no marks. RIH with 6.0" LIB again, make it to 3,304", no marks RIH with 2.0" weight bar and CCL to see what depth it can get to. Get to 3,348' but it is sticky. POH. MU and RIH with CBL / GR / CCL, log to 1,800'. Send to town. RD Wireline unit Mobilize equipment to rig floor for running tubing. Prep laydown machine racks Turn location over to Night Watch. Fill pits, load pipe onto lay down machine rack, clean BOP of mud and sand, doublecheck all whipchecks and circulating lines for pumping operations tomorrow. 01/25/2021 - Monday Safety Meeting with crew, emphasis on planning ahead for operations, fluid transfers, POH with chemical injection line. Check equipment, blow through lines with air. Line up and reverse circulate to ensure clean bottom for setting CIBP. Stage circ up to 2.5 bpm, pressure rose to 750 psi and then held steady. Pumped 30 bbls, no returns and slight pressure drop. Stop pumping, close in and monitor pressure. Fell to 480 psi over 5 minutes. Monitor while rigging up to provide hole fill. No pressure from well, gave some fluid back. RD circ hoses and TIW. POH with 4-1/2# 12.6# L-80 Hydril Wedge 563 tubing string spooling chemical injection line, hole fill is lined up. Initial PUW 72k, weight dropped to normal string weight after first joint. POH with tubing, hole fill actual meets calculated. Pull joint that was supposed to be jet cut, no cut and still have liner hanging below. Break connection, 1.75" coil with 33' of previous fishing BHA's sand-wedged in the tubing. Prep location for pulling coil from tubing. Send Expediter into town to retrieve coil clamps from Schlumberger. Make notifications. MU clamps to coil. Pick up joint, secure fishing BHA with strap, lay down joint. Attempt to pull coil with tugger, no movement. Make up single joint elevators, coil moves easily. Make cut, completely packed off with sand. Pull total of 380' of 1.75" coil. POH with 9 full joints of 4-1/2" tubing (total of 86 full joints, 5 pup jts, Chemical Injection mandrel, hanger with pup). 6 joints below CI mandrel packed off with sand. Pull Seal Assembly, also packed off with sand. Secure well, blow down lines. Mobilize rig tongs off of floor. Clear rig floor of sand. Turn location over to Night Watch. Night Watch will layout and strap 3-1/2" tubing, cut retrieved coil into 20' sections, fuel equipment. RIH with CBL / GR / CCL, log to 1,800' POH with 4-1/2# 12.6# L-80 Hydril Wedge Rig Start Date End Date 1/14/21 3/14/21 Daily Operations: Hilcorp Alaska, LLC Well Operations Summary API Number Well Permit NumberWell Name Paxton 2 50-133-20573-00-00 207-164 Safety meeting with crew, emphasis on circulating operation, cold temps. Inspect equipment, load in pipe. RIH with 3- 1/2" 9.2# L-80 IBT-M tubing. RIH to 3268' with no issues. Line up for reverse circulation. Stage up at 1 bpm until returns, stage up to 3.5 bpm, 280 psi. Bottoms up, very dirty, solids laden returns. Stop circ, MU next joint, RIH to 330', circ a bottoms up and same dirty returns. MU joint, RIH to 3,320' (mid-joint), take 1k weight. Break circ with 10 bbl hi-vis pill in the lead. With pill away, creep in to 3330' circulating at 4.0 bpm, 350 psi with good returns. Continue RIH to 3,455', circ with good returns. Pump down 5 bbl hi-vis sweep reverse circulation followed by fresh water at 4 bpm, 370 psi. until clean returns back. Pick up 60', blow down circulation lines. Secure well. Turn over to Night Watch crew. Crew will break apart retrieved fish, stage in racking mat, monitor pits and open top and keep heat on them. 01/27/2021 - Wednesday 01/28/2021 - Thursday Safety meeting with crew, emphasis on inclimate weather, pumping operations, preparing for completion run. Check equipment, open to well. Run first two joints left hanging into well. MU, RIH with jt 113, no issues getting down. Break circulation, 3.7 bpm at 370-395 psi. Continue to RIH with tubing and reversing out with each joint. run to 3,643'. Circulate a full surface-to-surface volume to ensure hole is clean. Pump 25 bbl hi-vis sweep chased by clean fluid from pits. Circ at 3.75 bpm, 340 psi. Very clean returns, blow down circ lines. Move out laydown machine, stage in racking board. POH with 3-1/2" tubing workstring, stand back. SIMOPS: stage in Wireline unit, begin RU. Hang sheave, complete E-Line RU. RIH with 6.6" gauge ring on junk basket. Reach 3,653' with no issues. POH, 2 bands in junk basket. RIH with CIBP, set at 3,638' wireline MD with 21' RKB (Glacier Drilling 1). PU, tag to confirm. POH. Close in with Blinds to secure well, blow down circulation lines. Night Watch takes over. Clear location around rig of snow. Monitor pits and open top tank to keep warm. 01/29/2021- Friday PU 20' shoe track and MU first stand of 3-1/2" 9.2# L-80 IBT-M tubing. Baker Lok connection, attempt to RIH but centralizer won't fit through tong cover. Swap out tongs. Re-MU connection, check floats, floats good. Continue to RIH with stands of 3-1/2". total of 116 jts run, average MU torque 2,750 ft lbs. Cementers on location and rigging up. Make up hanger, RIH with landing joint. Land out, test void to 5,000 psi. PJSM on cement job. Fluid pack lines, hose burst. Notify Safety rep, all good to proceed. Fluid pack, PT trips to low and high trip out. Pump water spacer ahead followed by 91 bbls 15.3 ppg cement chased by wiper dart and 31.4 bbls of fresh water to displace. Check floats, floats held. Cement in place at 1820 hrs. No losses during cement job. Clean up cementers to vac truck. Blow down circulation system with air. Recover hosing. Assist Cementers with breaking down iron. Install TIW, and pump in sub for pressure testing in the morning. Close in bag, secure well. Night watch to take over location. CIBP, set at 3,638' wireline MD w first stand of 3-1/2" 9.2#L-80 IBT-M tubing. Did not pressure test CIBP. y 91 bbls 15.3 ppg cement chased by wiper dart and 31.4 bbls of fresh water to displace. Rig Start Date End Date 1/14/21 3/14/21 Daily Operations: Hilcorp Alaska, LLC Well Operations Summary API Number Well Permit NumberWell Name Paxton 2 50-133-20573-00-00 207-164 01/30/2021 - Saturday 03/14/2021 - Sunday RU Pollard SL, install new Weatherford PB SSSV, RDMO. Safety Meeting with team, emphasis on pressure testing, preparing for ND BOP and NU tree. Prep tools and equipment for rigging down. Fluid pack lines. Pressure test 3-/2" tubing to 1,500 psi for 30 minutes. Good test. Bleed off, realign test hose. Pressure test IA to 1,500 psi for 30 minutes. Good test. Bleed off and blow down lines. Pull landing joint. Install BPV, ND BOP. NU Tree. Test flange void to 5,000 psi. Fluid pack tree with diesel, shell test to 5,000 psi. SIMOPS: Welder on location. Clear hot work permit with Field Operator. Weld support rail for skirting on carrier. Prep for next job. Hang blocks and spool off drilling line from drawworks drum. Welder to repair tabs on derrick scoping ram body, med kick tabs on drawworks drum. Turn location over to Night Watch. Welder repaired tabs on derrick scoping ram body, RD and clean up. 02/23/2021 - Tuesday Sign in. PTW, JSA and SIMOPS with Yellowjacket and Fox N2. Spot equipment and rig up lubricator. PT to 250 psi low and 3500 psi high. RIH w/ 2-3/8" x 10' HC, 5 spf, 60 deg phase and tie into OHL. Tools set down at 3,391'. Worked tools to 3,441' Wasn't sticking but not making any hole. POOH. Nothing on tools. RIH with 1-11/16" CCL and 2 7' weight bar. Set down at 3,441' and worked tools down to 3,459'. 2.80" and junk basket showed up. POOH. Nothing on tools. RIH w/2.80" GR/JB and CCL. Tie into OHL. We set down at 3,452' and worked tools to 3,456.5'. Bottom of last shot would be 3,455'. Called town and decision was made to POOH and run perf gun. RIH w/Gun #1A, 2-3/8" x 10' HC, 5 spf, 60 deg phase and tie into OHL. run correlation log and send to town. Get ok to perf from 3,445' to 3,455'. Spot and fire gun w/1,224 (N2)psi on well. After 5min - 1,214 psi, 10 min - 1,197 psi and 15 min - 1,194 psi. POOH. All shots fired and gun was wet. RIH w/Gun #2, 2-3/8" x 10' HC, 5 spf, 60 deg phase and tie into OHL. run correlation log and send to town. Get ok to perf from 3,435' to 3,445' w/1,150 psi. Had a problem getting 5, 10, and 15' psi. POOH. All shots fired and gun was wet. RIH w/Gun #3, 2-3/8" x 10' HC, 5 spf, 60 deg phase and tie into OHL. run correlation log and send to town. Get ok to perf from 3,307' to 3,317' w/1,082.6 psi. Spot and fired fun. After 5 min - 1,090.2 psi, 10 min - 1,092.6 psi and 15 min - 1,101.1 psi. POOH. All shots fired and gun was wet. Rid down lubricator and put night cap on. Field will flow well tonight. Yellowjacket and Fox Energy is leaving equipment just in case we have to perf tomorrow. 03/04/2021 - Thursday RU AK E-Line. MU setting tool. MU 3.5 Packer from Northern Solutions (John Milne on Loc). RIH with 3.5 packer, 1.35' spacer, 1.75' RN-Nipple with 1.78" profile & 1.75" no-go ID, 1.35' spacer, 2-3/8" WLEG (min ID 1.750" at RN, 10.52' OAL). Set at 121', RDMO E-Line. RU Slickline, RIH with RX-line w 2-3/8" PB valve(Hilcorp owned). Set in RN. Discover valve stuck open, Pull valve, RDMO. Get ok to perf from 3,445' to 3,455'. Spot and fire gun RIH with 3.5 packer, 1.35' spacer, 1.75' RN-Nipple with 1.78" profile & 1.75" no-go ID,1.35' spacer, 2-3/8" WLEG Pressure test IA to 1,500 psi for 30 minutes. Good test. o perf from 3,435' to 3,445' w Pressure test 3-/2" tubing to 1,500 psi for 30 minutes. Good test. Set at 121', RDMO perf from 3,307' to 3,317' install new Weatherford PB SSSV, CBL run 02/03/2021. TOC @1234' md. bjm Formation Tops: Formation Depth (MD)Depth (SSTVD) Beluga Tyonek TKT 3,946' 3,328 Tyonek T2 4,896' 4,278' Tyonek T3 6,048' 5,430' TD 8,448' 8,000' KOP @ 325' MD/TVD Build 4.0 deg/100' from 487-1362' MD Hold 38.35 deg from 1362-2668' MD Drop 3.0 deg/100' to 3918' MD Hold 0 deg from 3918' to TD at 8448' MD Paxton #2 Ninilchik Unit 746' FNL, 2,914' FEL Sec. 13, T1S, R14W, S.M. * ZXP Liner Packer with 6' Tieback Extension @ 3,667' MD (Top) * Flex-Lock Liner Hanger @ 3701' MD (Top) KB:21' AGL (171' KB Elev) API #:50-133-20573-00-00 Permit #:207-1640 Property Des:ADL - 384372 WBS #:DD.07.16241.CAP X= 206,414.356 (NAD27) Y=2,230,614.114 (NAD27) Lat:60º 05' 43.394" N Long:151º 36' 38.544" W Spud:06:30 hrs 01/18/2008 TD:06:00 hrs 2/1/2008 Rig Released:18:00 hrs 2/15/2008 TD: 8,436' MD 7,985' TVD Expro Radial Bond Log (2/19/08) Conductor 20" K-55 133 ppf PE Top Bottom MD 0' 114 TVD 0' 114' Surface Casing 10-3/4" J-55 45.5 ppf BTC MD 0' 1,617' TVD 0' 1,487' 13-1/2" hole with 457sks (202 bbls) 12 ppg 100% returns and 40 bbls, Cmt to surface. Intermediate Casing 7-5/8" L-80 29.7 ppf BTC Top Bottom MD 0' 3,902' TVD 0' 3,453' 9-7/8" hole with 265sks (99 bbls) 12.0 ppg Type 1 Lead Cmt & 150sks (31 bbls) 15.8 ppg Class G Cmt Tail. Slight interface returns to surface. Production Liner 4-1/2" L-80 12.6 ppf Hydril 563 Top Bottom MD 3,685' 8,385' TVD 3,237' 7,934' 6-3/4" hole Cmt w/ 284 sks (210 bbls) 10.5 ppg Class G, 100% Returns. 25 bbls cmt returns. Tubing (Ran 1-29-21) 3-1/2" L-80 9.2 ppf IBT-M Top Bottom MD 0' 3,627' (float collar at 3606') TVD 0' 3,219' PBTD: 3,459' MD 3,015' TVD FISH DETAIL 36' of 3-3/8" HSC Perf guns Tagged @ 7,602' MD w/ 2.82" GR (1/19/10) Tagged @ 7,782' MD (12/22/08) Well Name & Number: Municipality: Perforations (MD): Angle @ KOP & Depth: Date Completed: Revised by: Paxton # 2 Kenai Peninsula Borough 3,307- 7,574' ~ 2.5º / 100 ft, 325' - 1,300' 3/6/2008 Donna Ambruz Lease: State: Perf (TVD): Ninilchik Unit, ADL - 384372 Country: Angle @ Perfs: Ground Level: Revision Date: Alaska USA 2,871' - 7,123' ~ 1.5º RKB:150' (AMSL)21' (AGL) 04-09-21 CIBP @ 8,022' CIBP @ 7,890' SCHEMATIC 7-5/8 TOC @ 1215' (1-27-21 CBL) 3459' PBTD from E-Line 3609' wiper plug (31.4bbls disp) 3638' CIBP (set 1/28/21) 3-1/2 TOC @ 1240' (02-03-21 CBL) 3-1/2" Retrievable Packer w/ 1-3/8" RN Nipple @ 121' 03/04/21 2-3/8" Lock & Weatherford PB-Valve @ 128' 03/14/21 Samuel Gebert Hilcorp Alaska, LLC GeoTechnician 3800 Centerpoint Drive, Suite 1400 Anchorage, AK 99503 Tele: 907 777-8337 Fax: 907 777-8510 E-mail: sam.gebert@hilcorp.com Please acknowledge receipt by signing and returning one copy of this transmittal or FAX to 907 777.8510 Received By: Date: DATE: 03/19/2021 To: Alaska Oil & Gas Conservation Commission Natural Resource Technician 333 W 7th Ave Suite 100 Anchorage, AK 99501 DATA TRANSMITTAL PAXTON 2 (PTD 207-164) PACKER 03/04/2021 Please include current contact information if different from above. PTD: 2071640 E-Set: 34798 Received by the AOGCC 03/19/2021 03/22/2021 Samuel Gebert Hilcorp Alaska, LLC GeoTechnician 3800 Centerpoint Drive, Suite 1400 Anchorage, AK 99503 Tele: 907 777-8337 Fax: 907 777-8510 E-mail: sam.gebert@hilcorp.com Please acknowledge receipt by signing and returning one copy of this transmittal or FAX to 907 777.8510 Received By: Date: DATE : 02/24/2021 To: Alaska Oil & Gas Conservation Commission Natural Resource Technician 333 W 7th Ave Suite 100 Anchorage, AK 99501 DATA TRANSMITTAL Paxton 2 (PTD 207-164) Memory Radial Cement Bond Log REVISED 02/03/2021 Please include current contact information if different from above. PTD: 2071640 E-Set: 34675 Received by the AOGCC 03/08/2021 03/09/2021 1. Type of Request: Abandon Plug Perforations Fracture Stimulate Repair Well Operations shutdown Suspend Perforate Other Stimulate Pull Tubing Change Approved Program Plug for Redrill Perforate New Pool Re-enter Susp Well Alter Casing Other: K-Valve SSSV 2.Operator Name:4.Current Well Class:5. Permit to Drill Number: Exploratory Development 3.Address:Stratigraphic Service 6.API Number: 7.If perforating:8. Well Name and Number: What Regulation or Conservation Order governs well spacing in this pool? Will planned perforations require a spacing exception?Yes No 9.Property Designation (Lease Number):10. Field/Pool(s): 11. Total Depth MD (ft): Total Depth TVD (ft): Effective Depth MD: Effective Depth TVD: MPSP (psi): Plugs (MD): Junk (MD): 8,436'3685' Casing Collapse Structural Conductor 1,500 psi Surface 2,090 psi Intermediate 4,790 psi Production Liner 7,500 psi Packers and SSSV Type: Packers and SSSV MD (ft) and TVD (ft): 12. Attachments: Proposal Summary Wellbore schematic 13.Well Class after proposed work: Detailed Operations Program BOP Sketch Exploratory Stratigraphic Development Service 14. Estimated Date for 15.Well Status after proposed work: Commencing Operations:OIL WINJ WDSPL Suspended 16.Verbal Approval:Date:GAS WAG GSTOR SPLUG Commission Representative: GINJ Op Shutdown Abandoned Taylor Wellman 777-8449 Contact Name: Jake Flora Operations Manager Contact Email: Contact Phone: 777-8442 Date: Conditions of approval: Notify Commission so that a representative may witness Sundry Number: Plug Integrity BOP Test Mechanical Integrity Test Location Clearance Other: Post Initial Injection MIT Req'd? Yes No Spacing Exception Required? Yes No Subsequent Form Required: APPROVED BY Approved by: COMMISSIONER THE COMMISSION Date: Comm. Comm. Sr Pet Eng Sr Pet Geo Sr Res Eng 3,667' MD/3,219' TVD; N/A 9.3# / L-80 Authorized Title: 17.I hereby certify that the foregoing is true and the procedure approved herein will not be deviated from without prior written approval. Authorized Signature: March 1, 2021 8,385'4,700' 3-1/2" 7,934' ZXP Liner Packer; N/A Perforation Depth MD (ft): 7-5/8"3,881' 1,596' 3,902' See Attached Schematic 4-1/2" 3,453' 114' 1,617' 20" 10-3/4" 93' Burst 3,627 MD 6,890 psi 3,060 psi 3,580 psi 114' 1,478' Hilcorp Alaska, LLC 3800 Centerpoint Dr, Suite 1400 Anchorage Alaska 99503 PRESENT WELL CONDITION SUMMARY TVD STATE OF ALASKA ALASKA OIL AND GAS CONSERVATION COMMISSION APPLICATION FOR SUNDRY APPROVALS 20 AAC 25.280 FEE TRACT, ADL-384372 207-164 50-133-20573-00-00 Paxton #2 Ninilchik Unit - Beluga/Tyonek Gas Pool CO 701C COMMISSION USE ONLY Authorized Name: 8,430 psi Tubing Grade: Tubing MD (ft): See Attached Schematic jake.flora@hilcorp.com 7,985'3459'3015'963 3638', 7890', 8022' Perforation Depth TVD (ft): Tubing Size: Length Size Perforate Reppair Well Exploratory Stratigraphic Development Service BOP TestMechanical Integrity Test Location Clearance No No Wellbore schematic Form 10-403 Revised 3/2020 Approved application is valid for 12 months from the date of approval. By Samantha Carlisle at 2:29 pm, Feb 26, 2021 321-098 Digitally signed by Taylor Wellman (2143) DN: cn=Taylor Wellman (2143), ou=Users Date: 2021.02.26 14:11:32 -09'00' Taylor Wellman (2143) *Witnessed SSSV performance test required within 5 days of return to service following installation of K-valve. *Production with K-Valve approved for up to 6 months from post-installation return to service date. DSR-3/1/21SFD 2/26/2021BJM 3/1/21 10-404 Comm 3/2/21 dts 3/2/2021 JLC 3/2/2021 RBDMS HEW 3/3/2021 Well Prognosis Well: Paxton 2 Date: 2/26/2021 Well Name: Paxton 2 API Number: 50-133-20573-00-00 Current Status: Gas Well Leg: N/A Estimated Start Date: 3/1/2020 Rig: E-Line, Slick-Line Reg. Approval Req’d? 10-403 Sundry Number: Regulatory Contact: Donna Ambruz 777-8305 Permit to Drill Number: 207-164 First Call Engineer: Jake Flora (907) 777-8442 (O) (720) 988-5375 (C) Second Call Engineer: Ted Kramer (907) 777-8420 (O) (907) 378-7323 (C) AFE Number Maximum Expected BHP: ~ 1233 psi @ 2705’ TVD Based on RFT Data Max. Potential Surface Pressure: ~ 963 psi Based on BHP minus 0.1 psi/ft gas Gradient Current Well Status: Flowing at approximately 2,000 MCFD @ 110psi. Well Summary: Paxton 2 was recently worked over, cementing a 3.5” monobore from surface to just above the original 4.5” liner top. The well was perforated in the Beluga 90B & 92-6 sands on 2/23/21 and brought online 2/24/21 with an initial rate of approximately 1500 MCFD. Objective: The purpose of this Sundry is to install a K-valve SSSV in the well at approximately 115’. The valve will be set in a nipple hung below a 3.5” packer. Procedure 1. MIRU E-Line, PT Lubricator 2. Set 3.5” packer with 2-3/8” RN Nipple at ~115’ 3. MIRU Slickline, PT Lubricator 4. Install and test 2-3/8” Weatherford PB-Valve (similar to K-Valve) 5. Turn well over to production. Attachments: 1. Current Well Schematic 2. Proposed Well Schematic Performance Test due within 5 days of return to service. BJM Formation Tops: Formation Depth (MD)Depth (SSTVD) Beluga Tyonek TKT 3,946' 3,328 Tyonek T2 4,896' 4,278' Tyonek T3 6,048' 5,430' TD 8,448' 8,000' KOP @ 325' MD/TVD Build 4.0 deg/100' from 487-1362' MD Hold 38.35 deg from 1362-2668' MD Drop 3.0 deg/100' to 3918' MD Hold 0 deg from 3918' to TD at 8448' MD Paxton #2 Ninilchik Unit 746' FNL, 2,914' FEL Sec. 13, T1S, R14W, S.M. * ZXP Liner Packer with 6' Tieback Extension @ 3,667' MD (Top) * Flex-Lock Liner Hanger @ 3701' MD (Top) KB: 21' AGL (171' KB Elev) API #: 50-133-20573-00-00 Permit #: 207-1640 Property Des: ADL - 384372 WBS #: DD.07.16241.CAP X= 206,414.356 (NAD27) Y= 2,230,614.114 (NAD27) Lat: 60º 05' 43.394" N Long: 151º 36' 38.544" W Spud: 06:30 hrs 01/18/2008 TD: 06:00 hrs 2/1/2008 Rig Released: 18:00 hrs 2/15/2008 TD: 8,436' MD 7,985' TVD Expro Radial Bond Log (2/19/08) Conductor 20" K-55 133 ppf PE Top Bottom MD 0' 114 TVD 0' 114' Surface Casing 10-3/4" J-55 45.5 ppf BTC MD 0' 1,617' TVD 0' 1,487' 13-1/2" hole with 457sks (202 bbls) 12 ppg 100% returns and 40 bbls, Cmt to surface. Intermediate Casing 7-5/8" L-80 29.7 ppf BTC Top Bottom MD 0' 3,902' TVD 0' 3,453' 9-7/8" hole with 265sks (99 bbls) 12.0 ppg Type 1 Lead Cmt & 150sks (31 bbls) 15.8 ppg Class G Cmt Tail. Slight interface returns to surface. Production Liner 4-1/2" L-80 12.6 ppf Hydril 563 Top Bottom MD 3,685' 8,385' TVD 3,237' 7,934' 6-3/4" hole Cmt w/ 284 sks (210 bbls) 10.5 ppg Class G, 100% Returns. 25 bbls cmt returns. Tubing (Ran 1-29-21) 3-1/2" L-80 9.2 ppf IBT-M Top Bottom MD 0' 3,627' (float collar at 3606') TVD 0' 3,219' PBTD: 3,459' MD 3,015' TVD FISH DETAIL 36' of 3-3/8" HSC Perf guns Tagged @ 7,602' MD w/ 2.82" GR (1/19/10) Tagged @ 7,782' MD (12/22/08) Well Name & Number: Municipality: Perforations (MD): Angle @ KOP & Depth: Date Completed: Revised by: Paxton # 2 Kenai Peninsula Borough 4,302' - 7,574' ~ 2.5º / 100 ft, 325' -1,300' 3/6/2008 Jake Flora Lease: State: Perf (TVD): Ninilchik Unit, ADL -384372 Country: Angle @ Perfs: Ground Level: Revision Date: Alaska USA 3,853' - 7,123' ~ 1.5º RKB:150' (AMSL)21' (AGL) 01-02-21 CIBP @ 8,022' CIBP @ 7,890' SCHEMATIC 7-5/8 TOC @ 1215' (1-27-21 CBL) 3459' PBTD from E-Line 3609' wiper plug (31.4bbls disp) 3638' CIBP (set 1/28/21) 3-1/2 TOC @ 1240' (02-03-21 CBL) ~115' 3-1/2" packer 2-3/8" RN nipple 2-3/8 lock & Weatherford PB-Valve Formation Tops: Formation Depth (MD)Depth (SSTVD) Beluga Tyonek TKT 3,946' 3,328 Tyonek T2 4,896' 4,278' Tyonek T3 6,048' 5,430' TD 8,448' 8,000' KOP @ 325' MD/TVD Build 4.0 deg/100' from 487-1362' MD Hold 38.35 deg from 1362-2668' MD Drop 3.0 deg/100' to 3918' MD Hold 0 deg from 3918' to TD at 8448' MD Paxton #2 Ninilchik Unit 746' FNL, 2,914' FEL Sec. 13, T1S, R14W, S.M. * ZXP Liner Packer with 6' Tieback Extension @ 3,667' MD (Top) * Flex-Lock Liner Hanger @ 3701' MD (Top) KB: 21' AGL (171' KB Elev) API #: 50-133-20573-00-00 Permit #: 207-1640 Property Des: ADL - 384372 WBS #: DD.07.16241.CAP X= 206,414.356 (NAD27) Y= 2,230,614.114 (NAD27) Lat: 60º 05' 43.394" N Long: 151º 36' 38.544" W Spud: 06:30 hrs 01/18/2008 TD: 06:00 hrs 2/1/2008 Rig Released: 18:00 hrs 2/15/2008 TD: 8,436' MD 7,985' TVD Expro Radial Bond Log (2/19/08) Conductor 20" K-55 133 ppf PE Top Bottom MD 0' 114 TVD 0' 114' Surface Casing 10-3/4" J-55 45.5 ppf BTC MD 0' 1,617'TVD 0' 1,487' 13-1/2" hole with 457sks (202 bbls) 12 ppg 100% returns and 40 bbls, Cmt to surface. Intermediate Casing 7-5/8" L-80 29.7 ppf BTC Top Bottom MD 0' 3,902' TVD 0' 3,453' 9-7/8" hole with 265sks (99 bbls) 12.0 ppg Type 1 Lead Cmt & 150sks (31 bbls) 15.8 ppg Class G Cmt Tail. Slight interface returns to surface. Production Liner 4-1/2" L-80 12.6 ppf Hydril 563 Top Bottom MD 3,685' 8,385' TVD 3,237' 7,934' 6-3/4" hole Cmt w/ 284 sks (210 bbls) 10.5 ppg Class G, 100% Returns. 25 bbls cmt returns. Tubing (Ran 1-29-21) 3-1/2" L-80 9.2 ppf IBT-M Top Bottom MD 0' 3,627' (float collar at 3606') TVD 0' 3,219' PBTD: 3,459' MD 3,015' TVD FISH DETAIL 36' of 3-3/8" HSC Perf guns Tagged @ 7,602' MD w/ 2.82" GR (1/19/10) Tagged @ 7,782' MD (12/22/08) Well Name & Number: Municipality: Perforations (MD): Angle @ KOP & Depth: Date Completed: Revised by: Paxton # 2 Kenai Peninsula Borough 4,302' - 7,574' ~ 2.5º / 100 ft, 325' -1,300' 3/6/2008 Jake Flora Lease: State: Perf (TVD): Ninilchik Unit, ADL -384372 Country: Angle @ Perfs: Ground Level: Revision Date: Alaska USA 3,853' - 7,123' ~ 1.5º RKB:150' (AMSL)21' (AGL) 01-02-21 CIBP @ 8,022' CIBP @ 7,890' PROPOSED 7-5/8 TOC @ 1215' (1-27-21 CBL) 3459' PBTD from E-Line 3609' wiper plug (31.4bbls disp) 3638' CIBP (set 1/28/21) 3-1/2 TOC @ 1240' (02-03-21 CBL) Ver. 4.1 6/6/01 Wireline Work Request Distribution Wireline (4) Well:Reading File Date:Engineer: H2S Level: Problem Description Install Weatherford PB-Valve to produce well. Initial Problem Review Well needs SSSV and is almost pure methane. Remedial Plan - WIRELINE ACTION DSO: Flow well at normal wellhead pressure, valve set to close when well is produced to tanks. Targeted flowing wellhead pressure of 50 psi for valve to close at. FOR HES SHOP INFO ONLY: Set PB-Valve to close at 44 psi @ 60 deg F. Date Work Completed Well Status/Results Date by _______ Problem Resolved ? ___ Y ___ N : Well Review (Post GLV or Choke Installation) Pre Installation Post Installation Liquid Rate (STBL/D) Expected NOB: Avg. WC (%) Actual NOB: Lift Gas (MMSCF/D) MGOR used for NOB: TGLR (SCF/STBL/D) FTP (psi)/Steady?MAINTENANCE ONLY CLP (psi)/Steady?(e.g. Fix AC, Shallower for Slugging) Casing Press. (psi)/Steady?RATE (Non-Post-WW) Orifice Depth:(e.g. deepen, optimize orifice) IA Fluid Level:Post-Wellwork Date of FL Survey: / / Follow-up Recommendations: Paxton-2 Paxton-2 2/26/2021 Jake Flora Date:02/26/21 Test Date 02/03/21 Gross Fluid Rate 0 BLPD Flowing Well Head Pressure 109 psi Flowing Well Head Temperature 36 deg F GOR scf/bbl TGLR scf/bbl Flowing Pressure Calculations Based on Hagedorn-Brown Multiphase Flow Correlation "K" Valve Setting Depth TVD 115 ft Flowing Tubing Pressure With Gas Lift NA psi Flowing Tubing Pressure Without Gas Lift NA psi Valve set to close at 50 psi Pwh Flowing Tubing Pressure @ 50 psi Pwh 56 psi "K" Valve Test Rack Set Pressure at 60 deg F 101 psi 4.5"1.257 "K" Valve Calculation Sheet Paxton-2 Valve Size & Volume Ratio Samuel Gebert Hilcorp Alaska, LLC GeoTechnician 3800 Centerpoint Drive, Suite 1400 Anchorage, AK 99503 Tele: 907 777-8337 Fax: 907 777-8510 E-mail: sam.gebert@hilcorp.com Please acknowledge receipt by signing and returning one copy of this transmittal or FAX to 907 777.8510 Received By: Date: DATE: 02/12/2021 To: Alaska Oil & Gas Conservation Commission Natural Resource Technician 333 W 7th Ave Suite 100 Anchorage, AK 99501 DATA TRANSMITTAL PAXTON 2 (PTD 207-164) CBL 01/26/2021 Please include current contact information if different from above. Received by the AOGCC 02/16/2021 PTD: 2071640 E-Set: 34705 02/16/2021 Samuel Gebert Hilcorp Alaska, LLC GeoTechnician 3800 Centerpoint Drive, Suite 1400 Anchorage, AK 99503 Tele: 907 777-8337 Fax: 907 777-8510 E-mail: sam.gebert@hilcorp.com Please acknowledge receipt by signing and returning one copy of this transmittal or FAX to 907 777.8510 Received By: Date: DATE: 02/12/2021 To: Alaska Oil & Gas Conservation Commission Natural Resource Technician 333 W 7th Ave Suite 100 Anchorage, AK 99501 DATA TRANSMITTAL PAXTON 2 (PTD 207-164) GR-CCL-CIBP 01/28/2021 Please include current contact information if different from above. Received by the AOGCC 02/16/2021 PTD: 2071640 E-Set: 34704 02/16/2021 Samuel Gebert Hilcorp Alaska, LLC GeoTechnician 3800 Centerpoint Drive, Suite 1400 Anchorage, AK 99503 Tele: 907 777-8337 Fax: 907 777-8510 E-mail: sam.gebert@hilcorp.com Please acknowledge receipt by signing and returning one copy of this transmittal or FAX to 907 777.8510 Received By: Date: DATE: 02/08/2021 To: Alaska Oil & Gas Conservation Commission Natural Resource Technician 333 W 7th Ave Suite 100 Anchorage, AK 99501 DATA TRANSMITTAL Paxton 2 (PTD 207-164) Memory Radial Cement Bond Log 02/03/2021 Please include current contact information if different from above. PTD: 2071640 E-Set: 34675 Received by the AOGCC 02/08/2021 02/08/2021 1. Type of Request: Abandon Plug Perforations Fracture Stimulate Repair Well Operations shutdown Suspend Perforate Other Stimulate Pull Tubing Change Approved Program Plug for Redrill Perforate New Pool Re-enter Susp Well Alter Casing Other: N2 2.Operator Name:4.Current Well Class:5. Permit to Drill Number: Exploratory Development 3.Address:Stratigraphic Service 6.API Number: 7.If perforating:8.Well Name and Number: What Regulation or Conservation Order governs well spacing in this pool? Will planned perforations require a spacing exception?Yes No 9. Property Designation (Lease Number):10. Field/Pool(s): 11. Total Depth MD (ft): Total Depth TVD (ft): Effective Depth MD: Effective Depth TVD: MPSP (psi):Plugs (MD):Junk (MD): 8,436'NA Casing Collapse Structural Conductor 1,500 psi Surface 2,090 psi Intermediate 4,790 psi Production Liner 10,540 psi Packers and SSSV Type:Packers and SSSV MD (ft) and TVD (ft): 12. Attachments: Proposal Summary Wellbore schematic 13. Well Class after proposed work: Detailed Operations Program BOP Sketch Exploratory Stratigraphic Development Service 14. Estimated Date for 15. Well Status after proposed work: Commencing Operations:OIL WINJ WDSPL Suspended 16.Verbal Approval:Date:GAS WAG GSTOR SPLUG Commission Representative: GINJ Op Shutdown Abandoned Taylor Wellman 777-8449 Contact Name: Jake Flora Operations Manager Contact Email: Contact Phone: 777-8442 Date: Conditions of approval: Notify Commission so that a representative may witness Sundry Number: Plug Integrity BOP Test Mechanical Integrity Test Location Clearance Other: Post Initial Injection MIT Req'd? Yes No Spacing Exception Required? Yes No Subsequent Form Required: APPROVED BY Approved by: COMMISSIONER THE COMMISSION Date: Comm. Comm. Sr Pet Eng Sr Pet Geo Sr Res Eng 3,667' MD/3,219' TVD; N/A NA Authorized Title: 17.I hereby certify that the foregoing is true and the procedure approved herein will not be deviated from without prior written approval. Authorized Signature: February 5, 2021 ~3600'~3600' NA ~3155' ZXP Liner Packer; N/A Perforation Depth MD (ft): 7-5/8"3,881' 1,596' 3,902' See Attached Schematic 3-1/2" 3,453' 114' 1,617' 20" 10-3/4" 93' Burst NA MD 6,890 psi 3,060 psi 3,580 psi 114' 1,478' Hilcorp Alaska, LLC 3800 Centerpoint Dr, Suite 1400 Anchorage Alaska 99503 PRESENT WELL CONDITION SUMMARY TVD STATE OF ALASKA ALASKA OIL AND GAS CONSERVATION COMMISSION APPLICATION FOR SUNDRY APPROVALS 20 AAC 25.280 FEE TRACT, ADL-384372 207-164 50-133-20573-00-00 Paxton #2 Ninilchik Unit - Beluga/Tyonek Gas Pool CO 701C COMMISSION USE ONLY Authorized Name: 10,160 psi Tubing Grade: Tubing MD (ft): See Attached Schematic jake.flora@hilcorp.com 7,985'7,890'7,439'1,218 3600' Perforation Depth TVD (ft): Tubing Size: Length Size Perforate Repair Wepair Well Exploratory Stratigraphic Development Service BOP TestMechanical Integrity Test Location Clearance No No Wellbore schematic Form 10-403 Revised 3/2020 Approved application is valid for 12 months from the date of approval. By Samantha Carlisle at 8:32 am, Feb 02, 2021 321-065 Digitally signed by Taylor Wellman (2143) DN: cn=Taylor Wellman (2143), ou=Users Date: 2021.02.02 08:16:04 -09'00' Taylor Wellman (2143) 10-404 DLB 02/02/2021 DSR-2/2/21 X SSSV Required per 20 AAC 25.265 (d) BJM 02/10/21Comm 2/10/21 dts 2/102021 JLC 2/10/2021 RBDMS HEW 2/11/2021 Well Prognosis Well: Paxton 2 Date: 1/28/2021 Well Name: Paxton 2 API Number: 50-133-20573-00-00 Current Status: Gas Well Leg: N/A Estimated Start Date: 2/5/2021 Rig: E-Line Reg. Approval Req’d? 10-403 Sundry Number: Regulatory Contact: Donna Ambruz 777-8305 Permit to Drill Number: 207-164 First Call Engineer: Jake Flora (907) 777-8442 (O) (720) 988-5375 (C) Second Call Engineer: Ted Kramer (907) 777-8420 (O) (907) 378-7323 (C) AFE Number Maximum Expected BHP: ~ 1505 psi @ 2870’ TVD Based on RFT Data Max. Potential Surface Pressure: ~ 1218 psi Based on BHP minus 0.1 psi/ft gas Gradient Brief Well Summary: A recent workover in January 2021 changed scope slightly when the entire tieback string was pulled from the wellbore from 3667’. The additional depth exposed two more Sterling sands that are proposed to be tested. Objective: Add the Beluga 90B & 92-6 sands to the already sundried sands in Sundry 321-002 Wireline Procedure 1. MIRU Slickline. PT Lubricator. RIH with gauge ring to PBTD. Log Memory CBL from TD to surface and send to the AOGCC. Swab well down. Pressure up well with Nitrogen or well gas. 2. MIRU E-line. PT Lubricator. 3. Perforate the following Sand intervals: *** Below Table has the previously sundried Beluga 23-80 perforations in black (Sundry 321-002) and the Proposed Beluga 90B & 92-6 perforations in red*** Sand Perforation Top (MD) Perforation Bottom (MD) Perforation Top (TVD) Perforation Bottom (TVD) Total Footage (MD) Expected BHP (psi) BEL_23 ± 1,811' ± 1,816' ±1,642' ±1,646' 5' 678 (RFT) BEL_25 ± 1,822' ± 1,828' ±1,651' ±1,656' 6' 664 (RFT) BEL 34 ± 1,893' ± 1,899' ±1,707' ±1,712' 6' 713 (RFT) BEL 37 ± 1,930' ± 1,940' ±1,736' ±1,744' 10' 732 (RFT) BEL 41U ± 2,007' ± 2,017' ±1,797' ±1,805' 10' 574 (RFT) BEL 41L ± 2,022' ± 2,032' ±1,809' ±1,817' 10' 574 (RFT) BEL 44 ± 2,067' ± 2,075' ±1,845' ±1,852' 8' 694 (RFT) BEL 45U ± 2,090' ± 2,108' ±1,863' ±1,878' 18' 650 (RFT) BEL 45L ± 2,109' ± 2,130' ±1,878' ±1,895' 21' 650 (RFT) BEL 48 ± 2,196' ± 2,202' ±1,947' ±1,952' 6' 750 (RFT) BEL 50 ± 2,349' ± 2,369' ±2,067' ±2,082' 20' 562 (RFT) BEL_53L ± 2,542' ± 2,552' ±2,218' ±2,226' 10' 320 (RFT) Well Prognosis Well: Paxton 2 Date: 1/28/2021 BEL_56 ± 2,656' ± 2,681' ±2,308' ±2,328' 25' 965 (RFT in 2017) BEL_59 ± 2,829' ± 2,835' ±2,448' ±2,453' 6' 889 (RFT) BEL_72 ± 2,995' ± 3,003' ±2,589' ±2,596' 8' 1,142 (RFT) BEL_74 ± 3,087' ± 3,095' ±2,670' ±2,677' 8' 1,182 (RFT) BEL_75 ± 3,127' ± 3,133' ±2,705' ±2,711' 6' 1,233 (RFT) BEL_80 ± 3,160' ± 3,166' ±2,735' ±2,741' 6' 1,150 (RFT) BEL_90B ± 3,307' ± 3,330' ±2,870' ±2,892' 23' 1,505 (RFT in Paxton 10 – Oct. 2020) BEL_92-6 ± 3,434' ± 3,457' ±2,992' ±3,013' 23' < 1,351 (0.45 psi/ft. gradient) - Actively producing in Paxton 4 a. Correlate using Open Hole Correlation Log provided by Geologist. Send the correlation pass to the Operations Engineer, Reservoir Engineer, and Geologist for confirmation. Consult with RE/Geo between each perf interval: i. Anthony McConkey: RE - 529-6199 ii. Matthew Petrowsky: Geo – 814-421-6753 b. The listed Sands are governed by Conservation Order 701C and CO 690. Comingling of pools is allowed under the same Order. c. Sand intervals may be grouped or shot one at a time and flow tested to the system. If a sand makes water, then a plug or an isolation patch may be set prior to moving up to the next sand interval. 4. POOH. RD e-line. 5. Turn well over to production. Attachments: 1. Proposed Well Schematic [CO 690 grants a spacing exception for Frances No. 1, which is located 8-1/2 miles to the northeast.] SFD 2/3/2021 Formation Tops: Formation Depth (MD)Depth (SSTVD) Beluga Tyonek TKT 3,946' 3,328 Tyonek T2 4,896' 4,278' Tyonek T3 6,048' 5,430' TD 8,448' 8,000' KOP @ 325' MD/TVD Build 4.0 deg/100' from 487-1362' MD Hold 38.35 deg from 1362-2668' MD Drop 3.0 deg/100' to 3918' MD Hold 0 deg from 3918' to TD at 8448' MD Paxton #2 Ninilchik Unit 746' FNL, 2,914' FEL Sec. 13, T1S, R14W, S.M. * ZXP Liner Packer with 6' Tieback Extension @ 3,667' MD (Top) * Flex-Lock Liner Hanger @ 3701' MD (Top) KB: 21' AGL (171' KB Elev) API #: 50-133-20573-00-00 Permit #: 207-1640 Property Des: ADL - 384372 WBS #: DD.07.16241.CAP X= 206,414.356 (NAD27) Y= 2,230,614.114 (NAD27) Lat: 60º 05' 43.394" N Long: 151º 36' 38.544" W Spud: 06:30 hrs 01/18/2008 TD: 06:00 hrs 2/1/2008 Rig Released: 18:00 hrs 2/15/2008 TD: 8,436' MD 7,985' TVD Expro Radial Bond Log (2/19/08) Conductor 20" K-55 133 ppf PE Top Bottom MD 0' 114 TVD 0' 114' Surface Casing 10-3/4" J-55 45.5 ppf BTC Top Bottom MD 0' 1,617' TVD 0' 1,487' 13-1/2" hole with 457sks (202 bbls) 12 ppg Type 1 Cmt with 100% returns and 40 bbls Cmt to surface. Intermediate Casing 7-5/8" L-80 29.7 ppf BTC Top Bottom MD 0' 3,902' TVD 0' 3,453' 9-7/8" hole with 265sks (99 bbls) 12.0 ppg Type 1 Lead Cmt & 150sks (31 bbls) 15.8 ppg Class G Cmt Tail. Slight interface returns to surface. Production Liner 4-1/2" L-80 12.6 ppf Hydril 563 Top Bottom MD 3,685' 8,385' TVD 3,237' 7,934' 6-3/4" hole Cmt w/ 284 sks (210 bbls) 10.5 ppg Class G, 100% Returns. 25 bbls cmt returns. Tie-backTubing 4-1/2" L-80 12.6 ppf Hydril 563 Top Bottom MD 0' 3,667' TVD 0' 3,219' PBTD: 7,890' MD 7,439' TVD FISH DETAIL 36' of 3-3/8" HSC Perf guns Tagged @ 7,602' MD w/ 2.82" GR (1/19/10) Tagged @ 7,782' MD (12/22/08) Well Name & Number: Municipality: Perforations (MD): Angle @ KOP & Depth: Date Completed: Revised by: Paxton # 2 Kenai Peninsula Borough 4,302' -7,574' ~ 2.5º / 100 ft, 325' -1,300' 3/6/2008 Jake Flora Lease: State: Perf (TVD): Ninilchik Unit, ADL -384372 Country: Angle @ Perfs: Ground Level: Revision Date: Alaska USA 3,853' -7,123' ~ 1.5º RKB:150' (AMSL)21' (AGL) 01-02-21 CIBP @ 8,022' CIBP @ 7,890' Updated Proposed Schematic 1/29/21 ~3638' CIBP (set 1/28/21) 7-5/8 TOC @ 1215' (1-27-21 CBL) suspected casing holes @ 2700-2800', 3270' Planned TOC @ 1000'Actual 3-1/2" TOC @ ~1250' per CBL SSSV Required per 20AAC25.265(d) PAXTON 2 SHLSEC. 12SEC. 131S14WD MEADOW DRRED BLUFF DRAUTUMN GOLD DRFRONTAGE RDSTERLING HWYNINILCHIKUNITBARDARSONCAROL MGRADNEYPAUL DWILKES BRIANSPENCERPROPERTIES OFALASKA LLCMILLARWAYNERUSSELLMILLARWAYNERUSSELLGORDAOFFKEITHGORDAOFFLAURENCE MGORDAOFFKEITHSHIRLEYJOSEPHPIERCEWAGGONERPATRICIA MHOLSMANJOHN & PATSYFAMILY TRUSTROCHFORDPAUL KKENAIPENINSULABOROUGHWEST DONNA LYNNLIVING TRUSTLOPEZ DARIOCHIRI JOHNM & ALICE SMANN PAUL KDULLINGERJAMES A &SHARON KKODYSZ DAVID R &GREGORICH JEAN RHUBBARD DAN CCHOWGUY ASHEA DAVID M& JEANINE BWEST DONNA LYNNLIVING TRUSTWALLACEJESSE SMYERS JIMPALMERREVOCABLELIVING TRUSTCHASE-SKOGENPROPERTIES LLCBROWN JAMES& LINDA LNORATUKCHUN-NI& PAMELA SD &D HARRISONLIVING TRUSTBRISCO JIM& LORRAINELIVING TRUSTALLANROBERT &PEGGYSKEEL LARRY J& CHARLAINE MPARKHILL G LDULLINGERJAMESPAGEINVESTMENTSLLCSource: Esri, Maxar, GeoEye, Earthstar Geographics, CNES/Airbus DS, USDA, USGS, AeroGRID,IGN, and the GIS User Community151°36'30"W151°36'40"W151°36'50"W151°37'0"W60°5'55"N60°5'55"N60°5'50"N60°5'50"N60°5'45"N60°5'45"N60°5'40"N60°5'40"N60°5'35"N60°5'35"N60°5'30"N60°5'30"NNinilchik UnitPaxton PadPaxton 2 SHL - 660 ft Radius0 100 200 300 400FeetLegendSurface Well LocationExisting Gas PipelinesMHW Line (NOAA)Paxton 2 SHL - 660ft BufferKPB ParcelsCook Inlet Oil and Gas UnitsNinilchik Unit OverviewArea of Detail1 inch = 200 feetMap Date: 1/11/2021 Document Path: O:\Alaska\GIS\cook_inlet\fields\Ninilchik\mxds\Ninilchik_Unit_Pad_Well_Pax-02_660ftBuffer_11x17_JFlora_v01.mxd 1 Carlisle, Samantha J (CED) From:Jake Flora - (C) <Jake.Flora@hilcorp.com> Sent:Thursday, January 28, 2021 12:59 PM To:Schwartz, Guy L (CED) Subject:Paxton 2 CBL & Updated WBD (PTD 207-164) Attachments:Paxton #2 CBL 26-JAN-21.pdf; Paxton2 CBL 26-JAN-21.las; Paxton 2 Updated Schematic 01-28-21.pdf Guy, Asdiscussedonthephonethe4.5tiebackpulledfromthesealsintheLTPat3667’anddidnotpartatthejetcut(failed jetcut).Werecoveredthecoilfishingtoolsaswell. WethenranaCBLofthe7Ͳ5/8”intermediatefrom3300’tosurface.Couldnotgetdeeper.Thenwecleanedoutto 3600’(reversingoutmud&sandwiththetubing),andarenowgoingtosettheCIBPat3600’. Thiswasawinforusasitexposed300’ofthewellthatincludestwoadditionalpayzones.PerourdiscussionIwill submitaseparatesundryforthesesands. Thanks, Jake From:RobertO'NealͲ(C) Sent:Tuesday,January26,20215:15PM To:AnthonyMcConkey<amcconkey@hilcorp.com>;MatthewPetrowsky<mpetrowsky@hilcorp.com> Cc:JakeFloraͲ(C)<Jake.Flora@hilcorp.com> Subject:logsforPaxton2 Pleaseseeattached.Noneedforcorrelationcorrection.WewillrunanotherwhenweconducttheCIBPrun. RobertO’Neal WellsiteSupervisor,HilcorpEnergy Mobile:907Ͳ232Ͳ4429 The information contained in this email message is confidential and may be legally privileged and is intended only for the use of the individual or entity named above. If you are not an intended recipient or if you have received this message in error, you are hereby notified that any dissemination, distribution, or copy of this email is strictly prohibited. If you have received this email in error, please immediately notify us by return email or telephone if the sender's phone number is listed above, then promptly and permanently delete this message. While all reasonable care has been taken to avoid the transmission of viruses, it is the responsibility of the recipient to ensure that the onward transmission, opening, or use of this message and any attachments will not adversely affect its systems or data. No responsibility is accepted by the company in this regard and the recipient should carry out such virus and other checks as it considers appropriate. STATE OF ALASKA Reviewed By: OIL AND GAS CONSERVATION COMMISSION P,1. Supry BOPE Test Report for: NINILCHIK UNIT PAXTON 2 - Comm Contractor/Rig No.: Hilcorp 401 - PTDH: 2071640 - DATE: 124/2021Inspector Jeff Jones I Insp Source Operator: Hilcorp Alaska, LLC Operator Rep: R. O'Neal Rig Rep: C. Hannevold Inspector Type Operation: WRKOV Sundry No: Test Pressures: Inspection No: bopJ1210126134653 Rams: Annular: Valves: MASP: 321-002 -- -- ---500, -- -- — -- Related los No: type TesC INIT 250/2500' 2502500. 250/2500' 963 P FLOOR SAFTY VALVES: Quantity TEST DATA Upper Kelly 0 NA Lower Kelly MISC. INSPECTIONS: MUD SYSTEM: Ball Type ACCUMULATOR SYSTEM: P Inside BOP P/F NA Visual Alarm 0 Time/Pressure P/F Location Gen.: P' Trip Tank NA - NA " System Pressure 3025 P Housekeeping: _ P Pit Level Indicators P P Pressure After Closure 2000 P ' PTD On Location P ' Flow Indicator NA ' NA ' 200 PSI Attained 37 P Standing Order Posted P ' Meth Gas Detector P P Full Pressure Attained 196 P " Well Sign P ' 112S Gas Detector P P Blind Switch Covers: All P Drl. Rig P " MS Misc NA NA Nitgn. Bottles (avg): 6na 1900" P Hazard Sec. P " ACC Misc _ 0 NA - Misc NA FLOOR SAFTY VALVES: BOP STACK: Quantity P/F Upper Kelly 0 NA Lower Kelly 0 NA' Ball Type 2 P Inside BOP 0 NA FSV Misc 0 NA BOP STACK: Quantity Size P/F Stripper 0 NA Annular Preventer 1 .13 5/8" P " #1 Rams 1 ' 2 7/8 x 5.5" P #2 Rams 1 -Blind P #3 Rams 0 NA #4 Rams 0 NA #5 Rams 0 NA #6 Rams 0 NA Choke Ln. Valves 1 21/16 " P, HCR Valves 1 '21/16 - P " Kill Line Valves 3 '2 1/16 _ _' P ' Check Valve 0 _ NA_ BOP Misc 0 NA CHOKE MANIFOLD: Quantity P/F No. Valves 10 - FP Manual Chokes_ 2 P ' Hydraulic Chokes 0 NA - CH Misc 0 NA INSIDE REEL VALVES: (Valid for Coil Rigs Only) Quantity P/F Inside Reel Valves 0 NA Number of Failures: 1 ✓ Test Results Test Time 4.5 Remarks: All American Oilfield personnel performed the tests today in a safe and proficient manner with one failure observed. The #10 choke manifold valve failed the pressure test and was replaced and successfully retested. 1. Operations Abandon Plug Perforations Fracture Stimulate Pull Tubing Operations shutdown Performed: Suspend Perforate Other Stimulate Alter Casing Change Approved Program Plug for Redrill Perforate New Pool Repair Well Re-enter Susp Well Other: Pull V String Development Exploratory Stratigraphic Service 6. API Number: 7. Property Designation (Lease Number):8. Well Name and Number: 9. Logs (List logs and submit electronic data per 20AAC25.071):10. Field/Pool(s): 11. Present Well Condition Summary: Total Depth measured 8,436 feet 7890 & 8022 feet true vertical 7,985 feet 3244 & 7782 feet Effective Depth measured 7,890 feet 3,667 feet true vertical 7,439 feet 3,219 feet Perforation depth Measured depth See Attached Schematic True Vertical depth See Attached Schematic Tubing (size, grade, measured and true vertical depth)4-1/2" 12.5# / L-80 3,667' MD 3,219' TVD Packers and SSSV (type, measured and true vertical depth)ZXP Liner Pkr; N/A 3,667' MD 3,219' TVD N/A; N/A 12. Stimulation or cement squeeze summary: Intervals treated (measured): Treatment descriptions including volumes used and final pressure:N/A 13. Prior to well operation: Subsequent to operation: 15. Well Class after work: Daily Report of Well Operations Exploratory Development Service Stratigraphic Copies of Logs and Surveys Run 16. Well Status after work: Oil Gas WDSPL Electronic Fracture Stimulation Data GSTOR GINJ SUSP SPLUG Sundry Number or N/A if C.O. Exempt: Taylor Wellman 777-8449 Contact Name:Jake Flora Authorized Title:Operations Manager Contact Email: Contact Phone:777-8442 jake.flora@hilcorp.com Senior Engineer:Senior Res. Engineer: 8,430psi Burst 3,060psi114' 1,478' 6,890psi 3,580psi Collapse 1,500psi 2,090psi 4,790psi 7,500psi Casing Structural 20" 10-3/4" 7-5/8" Length 93' 1,596' 3,881' Conductor Surface Intermediate Production Authorized Signature with date: Authorized Name: 0 Casing Pressure Liner 4,700' 0 7,934' 0 Representative Daily Average Production or Injection Data 17. I hereby certify that the foregoing is true and correct to the best of my knowledge. 320-281 0 Size 14. Attachments (required per 20 AAC 25.070, 25.071, & 25.283) 0 Gas-Mcf 0 STATE OF ALASKA ALASKA OIL AND GAS CONSERVATION COMMISSION REPORT OF SUNDRY WELL OPERATIONS 207-164 50-133-20573-00-00 4. Well Class Before Work:5. Permit to Drill Number: 3. Address: 2. Operator Name:Hilcorp Alaska, LLC 7513 Ninilchik Unit Paxton 2 N/A FEE TRACT, ADL-384372 3,902' Plugs Junk measured 3800 Centerpoint Dr Suite 1400 Anchorage, AK 99503 Ninilchik Unit - Beluga/Tyonek Gas PoolN/A measured TVD Tubing PressureOil-Bbl measured true vertical Packer 4-1/2" 3,453' WINJ WAG 440 Water-Bbl MD 114' 1,617' 8,385' 0 t Fra O 6. A G L PG , R Form 10-404 Revised 3/2020 Submit Within 30 days of Operations By Samantha Carlisle at 12:52 pm, Dec 07, 2020 Digitally signed by Taylor Wellman DN: cn=Taylor Wellman, ou=Users Date: 2020.12.07 11:52:58 -09'00' Taylor Wellman SFD 12/9/2020gls 12/6/20 RBDMS HEW 12/7/2020 DSR-12/7/2020 Rig Start Date End Date 8/8/20 11/28/20 Daily Operations: Hilcorp Alaska, LLC Well Operations Summary API Number Well Permit NumberWell Name Paxton 2 50-133-20573-00-00 207-164 08/08/2020 - Saturday PTW, JSA with crew. Fire equipment. Remove well house with crane. Spot in CTU tractor trailer, fluid pump, Spot return tank, choke manifold, iron racks, BOPE rack, lubricator box, and manlift. 24 hr BOPE test witness notification sent 8/7/2020 @ 1:13 PM. Matt Herrera state inspector made contact. SLB function tested BOPE after hooking up hydraulic lines. Noticed leak coming from BOPE hydraulic side of ram 2 bonnet. Shut down operation. SLB perform field rebuild of Bonnet O rings. Function test BOPE quad rams 4 times. All systems back up and running. Shut down until the AM. BOPE test pushed until 8/9/2020. 08/09/2020 - Sunday PTW, JSA with crew. BOPE test delayed one day due to Hydraulic failure on bonnet seal. AOGCC inspector Matt Herrera waived witness. Perform accumulator draw down test. PT all rams and valves 250/4,000 psi. Perform -20 , +30 K push/pull on pipe slip rams. Rig up Yellow Jacket MHA and 3" G spear. Pull test 30k. Stab on well. PT stack 250/4,000 psi. Shut in flow line to facility. Open swab valve. Initial WHP 170 psi. Bullhead 30 bbls of produced water from surface. V string volume 16.5 bbls. V string on vac. Shut down pump. Perform 15 minute no flow. RIH and latch G spear at 12.1' from coil zero. Stack -12 down. Pick up 28K to confirm engagement to hanger fish profile. Slack off and stack 2k down. Back out upper hanger bolts to 4" off hanger body. Coil Velocity string data. 1.75"x .125 wall coil, 2.171 lbs/ft, 16.47 bbl volume, 457 ft/bbl. 100% yield of coil is 53,500 lbs. Weight of pipe in air with out buoyancy force and friction coefficient 16.3K. Picking up heavy pipe stretch 5' and lifted hanger. Saw v string x liner communication when unset. 170 psi of WHP. PU to 48K. Not able to break free. Work up and down a few times. Line up down CT x casing annulus. Bullhead 138 bbls to fill annulus from surface to top of perforations. Hoping fluid packing the annulus will aid in buoyancy and possible flush possible sand bridge below CT end of v string. Shut down pump. Pick up 48K or 31.5K over string weight. 5.5' of stretch. Continue to work pipe from hanger up to 48-49K. Started pulling out at 49.2K moved Hanger 28.4' out of hole still pulling 38-42K during the 28.4' of travel. Call town to discuss plan forward. Close pipe and slip rams and manual locks. Call out night BOPE watch. Strip off well and cut coil. Install 10' lubricator and night cap. Location walk around complete. Held change out meeting with night BOPE watch. SDFN depart location. Rig Start Date End Date 8/8/20 11/28/20 Daily Operations: Hilcorp Alaska, LLC Well Operations Summary API Number Well Permit NumberWell Name Paxton 2 50-133-20573-00-00 207-164 08/11/2020 - Tuesday No well work. Cut up coil tubing off spool into ~20 ft pieces and disposed in dumpster. 08/10/2020 - Monday PTW, JSA. Note: V string was installed 5/15/2010 Pick injector head. Make up 2x 11' lubricators. Dress and install dimple connector on CT whip end of reel. Online with pump down CT velocity string at 1.7 bbls/min. Over displace reel volume of 16 bbls with a total of 25 bbls pumped. Initial WHP started at 62 psi. After 5 bbls pumped V string was on a vac. Monitor Wellhead for 15 minutes. Confirmed no flow and well is on a vac. Pop off night cap and lubricator to expose V string stump. Dress V string coil for internal dimple. Install Internal dimple connector. Strip injector head down over connection and make up to BOPE. Perform pull test to 35K on double dimple spoolable connector. Slack off to 35K up weight. Previous day pipe and slip rams were set while in tension holding 48K. Well gave us back 10k overnight. Pick up on V string to 38K and started moving OOH at 5 ft/min. Continued to pull up to 42.4 K and moving OOH. After 57' pulled weight dropped to 3,000 lbs and would climb up to 4,200 lbs. Coil string should be showing at least 16.5K at depth. Possibly parted with out indication down hole. Prior to pulling OOH a depth of 7,520' was entered on counter. Pulled OOH to 5,112' and found two pin holes at same depth. Pin holes at 5,112' from bottom put the holes at 2,408' Set depth. These holes were caused by the chemical injection nipple @ 2,397' RKB and 10 years of Velocity string service. Pulled coil over goosneck and onto reel. Cross wraped pin holes. Saw 3 more sets of pin holes. Continue pulling out another 112' and stopped due to a partial shear above injector head. 2,408' + 112' = 2,520 original set depth. Attempted to pump down coil annulus to keep well overbalanced. Previous pump intervals would go on Vac. Pressure climbed to 550 and held rock solid. Lost communication with formation. Pressure started U tubing up the v string and solid column of sand was slowly flowing up the parted coil above injector head. Bleed WHP down to return tank. Monitor well for flow. No flow. Continue forward. ON 8/8/2020 Pollard slick line was on well to attempt pre coil work. Plan was to set plug in XN profile above the WLEG. SL couldn't make it past 2,514' RKB which puts coil part 6' off from Slick line tag depth. Secure parted coil with double clamp and cable. Transfer parted coil at injector head to reel and cross wrap over part wrap to secure. Continue POOH. Pipe looks thin and sand cut. Looked like multiple areas could break. Pulled OOH with another 184' of pipe and coil partially parted at gooseneck. Perform swab check master and swab closed 23.5 turns. SITP 0 psi. Secure coil on reel side and make a cut. Pop off well and RIH and cut pipe into metal dumpster. Stack down lubricator and injector head. Location walk around complete. All ground valves closed. 2,704' of 1.75" x .125" wall velocity string removed from well. 4,816' of velocity string remain in the hole. V string BHA remaining in hole 10' 2.5" OD straight bar, 8.5' XN profile nipple 2.5" OD, 8" WL Entry guide. 2,704' of 1.75" x .125" wall velocity string removed from well. 4,816' of velocity string remain in the hole. V string BHA remaining in hole 10' 2.5" OD straight bar, 8.5' XN profile nipple 2.5" OD, 8" WL Entry guide. Rig Start Date End Date 8/8/20 11/28/20 Daily Operations: Hilcorp Alaska, LLC Well Operations Summary API Number Well Permit NumberWell Name Paxton 2 50-133-20573-00-00 207-164 08/12/2020 - Wednesday Pollard slick line truck having drive ability issues. PTW, JSA with SL and Cruz crane operator. MIRU pollard SL truck. Make up lubricator and BHA with 3.7" LIB. Stab on well. PT stack 250/3,500 psi. WHP 0 psi. RIH with LIB to 2720' RKB. Pick up spang slack and hit down 3 times. POOH to surface. sharp marks close to center of LIB. Looks like opposite side of CT bottom that was recovered during partial V string pull. Called town to discuss plan forward. RDMO pollard slick line. SLB coil on location. Rig down CTU 13. Stage up at edge of pad and perform reel swap. Load 1.75" work string onto coil unit. V string spool and 200' whip loaded on weaver low boy and delivered to SLB yard. Spool-able coil connector recovered. Connector redressed and stored for future use. 11/12/2020 - Thursday Complete operations on Paxton 10. Stage equipment over to Paxton 2. 11/13/2020 - Friday Complete rig up of equipment, lay out and install circulation lines. Pressure test BOP equipment to 250 psi low / 4,000 psi high. Good test, no fails. Complete surface prep, install Ground Thaw hoses into supply tank, prep for BHA MU in the morning. Secure location. 11/14/2020 - Saturday Safety meeting regarding overhead lifts, MU BHA. MU 50' of lubricator, stab on and conduct Push / Pull test to 30k. Pop off, cut coil end and prep for connector. MU coil connector. MU Fishing BHA: Check Valve, Accelerator, Weight Bar, Bi- Directional Jar, Hydraulic Disconnect, Circ sub, 2.875" motor, XO, Drive Sub, 3-3/4" Extension with Grapple and Cut Lip Guide , total length 45.70'. Pressure test BHA and Lubricator. RIH with Cut-Lip Guide BHA with an overshot grapple, full returns immediately. Weight check at 2,300’ ~9k. RIH with pump as min rate, take weight at 2,717’, down on pump. PU, begin to POH with 16-18k PUW, lose all weight at 2,630’. RIH with pump at min rate and take weight again at 2,717’, down on pump and stack down 6k. PU, no weight change. Move down again with min pump, tag again at 2,717’, set down 10k, PU no weight. POH with BHA. Pop off, coil in grapple. retrieve 110' of coil velocity string. Dress out new Cut- lip guide, MU BHA and test lubricator. RIH with BHA. Weight check at 2,700’ ~9k. Tag string at 2,827'. Conduct same repetitions as above of coming on with pump at min rate while moving down to engage string. No luck after 3 attempts. On 4th attempt, set down with ~15k with no pump, pick up and latched on string. PU to 50k, no movement. Begin jarring, jar 18 times and gain 96' with top of string now at 2731'. POH with workstring. Lay down BHA. Blow down with Nitrogen. Cut 50' of coil. Place heaters on critical equipment. Secure location. CT fishing operations Rig Start Date End Date 8/8/20 11/28/20 Daily Operations: Hilcorp Alaska, LLC Well Operations Summary API Number Well Permit NumberWell Name Paxton 2 50-133-20573-00-00 207-164 11/15/2020 - Sunday Safety Meeting with crew on MU BHA, RIH to fish for velocity string. Prep equipment. MU Cut-lip Guide and Overshot Grapple BHA. Pressure test BHA. Complete MU of BHA, stab on with Lubricator. PT Lubricator. RIH with BHA. Tag fish at 2,731'. Set down ~12k, engage fish, begin jarring. Jar 30 times with sporadic movement. On jar lick 30, significant weight release and able to move up hole with ~30-35k PUW. Gain ~75', sudden weight drop. POH to surface. Pop off, coil in grapple. Cut coil to free up BHA. Stage in boom crane and retrieve coil using clamps and hand cutter. Total recovered 335'. MU new BHA while recovering coil. RIH with new Cut-Lip Guide BHA with Overshot Grapple. Firm tag at 2,847' (expected tag at 3000') PUW 9,700 lbs. "Mill" with Cut-Lip Guide and set down. Sudden break away and no resistance moving down to 3,200'. Take weight at 3,200', pick up heavy at ~30k for 50'. Weight fell off to ~10k. RIH, set down again at 3,200', pick up at~12k. POH, weight fell off to normal at 2,600'. Continue to POH. Break off at surface, no fish in Grapple. Suspect that initial "milling" was a sand bridge and the abnormal PUW was the sand that had fallen in around BHA and causing a sticking mechanism. Lay down BHA. Blowdown circulation system / coil with Nitrogen. RD Traction motor. Place heaters on critical equipment, cover coil with parachute and put heater on coil. Suck fluid from return tank and place into heated supply tank. Secure location. 11/16/2020 - Monday PJSM with new crew regarding past ops and plan forward to retrieve string. MU lubricator assembly, MU upper portion of BHA, fluid pack coil and pressure test BHA. MU remainder of Cut-Lip Guide with Overshot Grapple BHA. Stab on with lubricator. Attempt to enter well, ice plug at lower Upper Master Valve. Wrap with parachute and place heater trunk on tree, circulate warm water down tree. Finally broke free. RIH with BHA. Clean PUW at 3,100' 10k. Tag at 3,138', stack down, PU and no weight change. On with pump, set down with weight, push down to 3,148'. PU, no weight change. On with pump again, set down and push / "mill" to 3,178', PU with breakover then clean PU. Re-do, push to 3,180', bobble and then push to 3,183'. PU, fish on. Pull to 30k, sudden weight drop. Move down, tag up at 3,183' POH with BHA from 3183' with 300-500 lbs difference. Tractor motor that provides all mechanical and hydraulics to Coil Unit blows. BHA at 1,038' md, fish hanging off BHA. Secure coil by closing in Slip Rams and then Pipe Rams. Schlumberger on down time while troubleshooting and arranging for new equipment. Blowdown coil with Nitrogen. 11/17/2020 - Tuesday Mechanic on location, found damaged Valve Spring on tractor motor. Got permission to disable that piston, motor will run on 5 cylinders. Discuss risk assessment, how to equalize and open to well. Open to well, no pressure. Slowly POH with coil tubing and BHA to surface. Tag up, pop off. Fish in grapple. Make cut at BHA, move to side, retrieve coil from well. Retrieve 120', total recovered to date 565'. LD BHA to coil tubing connector. LD lubricators, begin rigging down in order to move tractor and coil unit off location. 11/18/2020 - Wednesday Schlumberger personnel are mobilizing and staging / RU offshore coil unit to complete work on Paxton 2 fishing operation. Rig Start Date End Date 8/8/20 11/28/20 Daily Operations: Hilcorp Alaska, LLC Well Operations Summary API Number Well Permit NumberWell Name Paxton 2 50-133-20573-00-00 207-164 11/19/2020 - Thursday Complete staging and rig up of Offshore Coil Unit PowerPack and Injector unit. Function test hydraulics. Test BOP per AOGCC requirements and Schlumberger procedures using 1-3/4" test joint. Test to 250 psi low / 4,000 psi high for 5 minutes, conduct Accumulator Drawdown test. Test witness waived by Jim Regg. Prep coil end, stab coil into injector during BOP test. Place heaters on critical equipment, secure location. 11/20/2020 - Friday PJSM with crew on checking equipment, pre-warming of pumps and Power Pack. Place heater trunks on pump unit, warm up air compressor to transfer air to Power Pack. MU Lubricators, run coil down. Conduct Push / Pull test to 30k. Trim pipe, make up connector, conduct pull test. MU upper BHA down to circ sub, attempt to pressure test. Instant pressure spike, check surface lines, all good - coil most likely not blown down when transported from offshore (had 2 heater trunks on it all night as a proactive measure). Place 6 heater trunks and parachute on coil to thaw. Continue to bump up pressure, maintaining 3,000 psi. Had one bump up where there was movement, then lock up again at 3000 psi. Call ODE at 1500 hrs to ask approval of plan forward. Break down BHA and LD lubricators. Ensure parachutes are very secure, fuel all heaters, secure location. 11/21/2020 - Saturday PJSM on inspecting equipment, concerns due to wind. Break circulation through coil, no issues. Re-wrap parachutes around coil, place methanol in pump and in coil end. Fuel all heaters, gensets, light plant, ground thaw heater. Secure location and stop work due to high winds. Site secure 11/22/2020 - Sunday Safety meeting with crew regarding slick, icy conditions and darkness. Check and fuel equipment. Prep to stab on with injector. MU one section of lubricator, stab on to well. Circulate at max rate to ensure coil is clean. Initial returns dirty but cleaned up quickly. Circulate one full volume. Pop off for BHA MU. MU lubricators and upper section of BHA 6: Check Valve, Accelerator, Weight Bar, Bi-Directional Jar, Hydraulic Disconnect, Circ sub. Pressure test BHA. MU 2.875" motor, XO, Drive Sub, 3-3/4" Extension with Grapple and Cut Lip Guide, total length 45.70'. Stab on, PT lubricators. RIH with BHA 6. Clean PUW at 3,000' 9,700 lbs. RIH, take weight at 3,140' (expected 3,280' based off of last retrieval). Able to slowly push through to 3,160'. Bring on pumps, circulate and break through at 3,168'. Continue washing down to 3,268'. Slowly pick up hole, circ bottoms up. Returns very dirty. Clean up with bottoms up. Move back down, take weight again at 3,168'. Able to circulate and push through. Strong tag at 3,268'. Set down with weight, no pump, pop off and on fish at 3,271'. Cock and fire jar, no movement. Set down again in attempt to cock jar, no jar lick. Try again but unsuccessful. Unable to get jar to fire. Bring on pump with string in tension in order to release. Continue with attempts to get free by cycling up and down, using pumps and no pumps both while setting down with weight and by picking up to max pull. Each attempt failed. Develop plan with ODE and Field Superintendent. Pump down coil and then backside in attempt to pressure up and change dynamics, full injectivity at 3 bpm, 800 psi, then at 5 bpm, 900 psi. Drop ball to release from BHA. Ball on seat, pressure up and release cleanly. Clean pickup, no overpulls. POH with remainder of BHA 6. Blowdown with Nitrogen at surface. Lay down BHA and Lubricators. Secure location. leave CT fishing BHA Rig Start Date End Date 8/8/20 11/28/20 Daily Operations: Hilcorp Alaska, LLC Well Operations Summary API Number Well Permit NumberWell Name Paxton 2 50-133-20573-00-00 207-164 11/23/2020 - Monday Safety meeting with crew regarding slick, icy conditions and darkness. Check and fuel equipment. Prep to stab on with injector. MU one section of lubricator, stab on to well. Circulate at max rate to ensure coil is clean. Initial returns dirty but cleaned up quickly. Circulate one full volume. Pop off for BHA MU. MU lubricators and upper section of BHA 6: Check Valve, Accelerator, Weight Bar, Bi-Directional Jar, Hydraulic Disconnect, Circ sub. Pressure test BHA. MU 2.875" motor, XO, Drive Sub, 3-3/4" Extension with Grapple and Cut Lip Guide, total length 45.70'. Stab on, PT lubricators. RIH with BHA 6. Clean PUW at 3,000' 9700 lbs. RIH, take weight at 3140' (expected 3280' based off of last retrieval). Able to slowly push through to 3160'. Bring on pumps, circulate and break through at 3168'. Continue washing down to 3268'. Slowly pick up hole, circ bottoms up. Returns very dirty. Clean up with bottoms up. Move back down, take weight again at 3168'. Able to circulate and push through. Strong tag at 3268'. Set down with weight, no pump, pop off and on fish at 3271'. Cock and fire jar, no movement. Set down again in attempt to cock jar, no jar lick. Try again but unsuccessful. Unable to get jar to fire. Bring on pump with string in tension in order to release. Continue with attempts to get free by cycling up and down, using pumps and no pumps both while setting down with weight and by picking up to max pull. Each attempt failed. Develop plan with ODE and Field Superintendent. Pump down coil and then backside in attempt to pressure up and change dynamics, full injectivity at 3 bpm, 800 psi, then at 5 bpm, 900 psi. Drop ball to release from BHA. Ball on seat, pressure up and release cleanly. Clean pickup, no overpulls. POH with remainder of BHA 6. BHA in well: Cut Lip guide on Overshot Extension, XO, Motor, Circ Sub and Hydraulic Disconnect fishing neck, total length 23'. Blowdown with Nitrogen at surface. Lay down BHA and Lubricators. Secure location. 11/24/2020 - Tuesday PJSM with team on risk assessing wind conditions and impact on crane and man-lift operations. Fuel and service equipment while monitoring wind readings. Readings with hand held off well house at 0830 were avg of 20 mph, gust to 28. Readings with crane Anemometer are steady 30-35 mph, gusts greater than 50 mph at 1015 hrs. Began to level off at noon, gust dropped below 28 mph at 1230. Yellow Jacket still on downtime due to misfiring jars. MU Connector, pull test to 40k. MU Lubricators and retrieval Fishing BHA 7: Accelerator, Weight Bar, Bi-directional Jars, Hydraulic Disconnect, Circ Sub, pressure test. MU GS Spear with Hydraulic Disconnect, stab on and test lubricators. RIH with Fishing BHA 7. Weight check at 3,200' 8,700 lbs. Move down, tag at 3,208' (expected tag at ~3,250'). PU clean. On with pump, wash down to 3,227', take weight again. PU clean. Close in backside, pump down coil and move all the way to tag at 3,251'. PU clean, Off pump, RIH and tag at 3,252'. PU, fish on. Begin jar operations to free fish (remainder of BHA 6 and 1.75" coil velocity string). Yellow Jacket back on paid time. Made 17 attempts with jars, only 3 verified firings. Yellow Jacket states they want to pull to swap jars. POH with Fishing BHA 7. Blow down with Nitrogen at surface. Pop off, remove jars and send back to Yellow Jacket for inspection and rebuild. Set Lubricator assembly onto peg, secured with crane. Secure well with nightcap. MU Fishing BHA 8: Accelerator, Weight Bar, "new" Logan Bi-directional Jars, Hydraulic Disconnect, Circ Sub, GS Spear. 11/25/2020 - Wednesday Operation shut down from 1730 hrs on 11/24 due to waiting on tools to resume fishing operation. Rig Start Date End Date 8/8/20 11/28/20 Daily Operations: Hilcorp Alaska, LLC Well Operations Summary API Number Well Permit NumberWell Name Paxton 2 50-133-20573-00-00 207-164 11/26/2020 - Thursday Crew and unit not on duty today, time off for Thanksgiving Day. Sent in request for BOP test witness to AOGCC at 0545 hrs. 11/27/2020 - Friday PJSM with crew, emphasis on slick conditions, stored energy and pressure during BOP test. Inspect and fuel equipment, load methanol into tri-plex pump unit, warm up SLB pump unit. (Still on Downtime until fish is latched). Test BOP per AOGCC and Sundry requirements to 250 psi low / 4000 psi high with 1.75" test joint. AOGCC witness waived by Jim Regg. (Paid time since BOP test would have been required to continue Workover Operations). MU Lubricators, pull test connector to 45k. MU GS Spear fishing BHA #9: Dual Back Pressure Valve, G-Force Accelerator, Weight Bars, 3-1/8" G- Force Series Jars, Hydraulic Disconnect, Rupture Disc, 3" GS Spear. PT BHA and lubricators. Surface test of High Gear good. (Downtime) RIH with Fishing BHA #9. Conduct weight check and test of Low Gear at 3000', hydraulic pressures matched what we should see on the weight indicator. No tags or weight slack offs during run in. Tag fish at expected depth of 3250’. (Downtime) Begin jarring ops. First jar with 15k overpull, strong fire. Second and third jars at 28k over, strong fires. Fourth through nineteenth jars at 45k over (max), all strong fires (pumped down backside while closed in for a couple of fires but no difference). Jars twenty through twenty-three noticeably shorter firing span, not allowing to get to overpull before firing. Make several attempts at firing down versus up, no go. Attempt to release with GS, no-go. Circulate at .9 bpm, 3200 psi while setting down ~10k, make several attempts. Mix “Slickum” pill to allow for higher circ rate. Circulate down at 1.9 bpm, 3700 psi while setting down and make several attempts, no-go. Jar down again and pick up quickly, no-go. Pipe has reached cycling limit – drop ball to release from GS, TJ Fishing profile looking up with Dual Circ sub and 3" GS below. Drop ball, release with no issues. POH, blowdown with Nitrogen at surface. Pop-off of tree, LD BHA. Cut coil due to cycling. Stand back Lubricators. Secure well and location. Rig Start Date End Date 8/8/20 11/28/20 Daily Operations: Hilcorp Alaska, LLC Well Operations Summary API Number Well Permit NumberWell Name Paxton 2 50-133-20573-00-00 207-164 PJSM with crew on todays Fishing Operations, emphasis on watching hand placement during BHA MU and pressure testing. Inspect, warm up equipment. MU coil connector, pull test to 45k. MU Fishing BHA #10: Dual Back Pressure Valve, G-Force Accelerator, 3 Weight Bars, G-Force Jars, TJ Hydraulic Disconnect, 3" GS Spear. Fluid pack coil, pressure test BHA and then lubricators. RIH with BHA #10. No issues running down, no slack off or weight issues. PUW at 3200' ~7800 lbs. Tag Disconnect fishing neck at 3244'. Set down, latch up and pick up, latched. Pump down at 1.5 bpm, 3500 psi, and able to release. Attempt to latch back in, can't latch, PU heavy 6k over but weight fell off. Make several attempts, no latch. POH to inspect BHA (didn't pump in case Fish was on). Pop off, BHA good, function test GS and working as designed. Stab on, PT lubricator. RIH with Fishing BHA #10. No slack off or weight issues on trip in. PUW at 3200' 7800 lbs. Tag Disconnect fishing neck at 3244'. Latch in on first try. Begin jar operations. First 5 attempts at 25k, no movement. Continue with 15 more attempts with PUW to ~30k. 20 more attempts at ~35k PUW with no success. Attempt to jar down, nothing. 4 more attempts at ~40k PUW, 1 last attempt at 45k (max pull) before releasing to POH for pipe management. Circ at 1.5 bpm, 3300 psi, release clean. POH with Fishing BHA #10. Get to surface, inspect BHA in preparation for breaking off to cut pipe...Accelerator has ~12" split down side just above mandrel. Discuss with ODE, decide to suspend current operations. RIH, blow down well w/ Nitrogen. POH, leave 950 psi on tbg (IA is also reading 950 psi). RD Lubricators. *Note: Fish in well: 1.75" coil string top of pipe ~3268'. BHA on coil string- Yellow Jacket: 3.75" Cut-lip Guide, 3.75" Series 150 Basket Grapple Bowl w/1.75 Grapple, 3.75" Extension, Drive Sub, XO, 2-7/8" motor, Circ Sub, Hyd Disco w/ TJ fish neck, 3" GS pulling tool, Circ Sub, Hyd Disco w/TJ fish neck, Baker Hughes: GS pulling tool, Rupture disc, Hyd Disco TJ fish neck, ~33' long Use crane to begin rig down operations on coil unit. Once crane work is complete, secure location. Will return in morning to continue rig down and move mobile equipment. 11/28/2020 - Saturday *Note: Fish in well: 1.75" coil string top of pipe ~3268'. BHA on coil string- Yellow Jacket: 3.75" Cut-lip Guide, 3.75" Series 150 Basket Grapple Bowl w/1.75 Grapple, 3.75" Extension, Drive Sub, XO, 2-7/8" motor, Circ Sub, Hyd Disco w/ TJ fish neck, 3" GS pulling tool, Circ Sub, Hyd Disco w/TJ fish neck, Baker Hughes: GS pulling tool, Rupture disc, Hyd Disco TJ fish neck, ~33' long Fish Description Formation Tops: Formation Depth (MD)Depth (SSTVD) Beluga Tyonek TKT 3,946' 3,328 Tyonek T2 4,896' 4,278' Tyonek T3 6,048' 5,430' TD 8,448' 8,000' KOP @ 325' MD/TVD Build 4.0 deg/100' from 487-1362' MD Hold 38.35 deg from 1362-2668' MD Drop 3.0 deg/100' to 3918' MD Hold 0 deg from 3918' to TD at 8448' MD Paxton #2 Ninilchik Unit 746' FNL, 2,914' FEL Sec. 13, T1S, R14W, S.M. Tubing String - 4.5", 12.6#, L-80, Hydril 563 Casing String - 4.5", 12.6#, L-80, Hydril 563 * Baker Chemical Injection Nipple @2,397' MD (Top) 5.750" OD/3.895" ID * ZXP Liner Packer with 6' Tieback Extension @ 3,667' MD (Top) * Flex-Lock Liner Hanger @ 3701' MD (Top) * Marker Joint Top @7987' MD (20' long) * Marker Joint Top @7012' MD (20' long) KB:21' AGL (171' KB Elev) API #:50-133-20573-00-00 Permit #:207-1640 Property Des:ADL - 384372 WBS #:DD.07.16241.CAP X= 206,414.356 (NAD27) Y=2,230,614.114 (NAD27) Lat:60º 05' 43.394" N Long:151º 36' 38.544" W Spud:06:30 hrs 01/18/2008 TD:06:00 hrs 2/1/2008 Rig Released:18:00 hrs 2/15/2008 TD: 8,436' MD 7,985' TVD Expro Radial Bond Log (2/19/08) Conductor 20" K-55 133 ppf PE Top Bottom MD 0' 114 TVD 0' 114' Surface Casing 10-3/4" J-55 45.5 ppf BTC Top Bottom MD 0' 1,617' TVD 0' 1,487' 13-1/2" hole with 457sks (202 bbls) 12 ppg Type 1 Cmt with 100% returns and 40 bbls Cmt to surface. Intermediate Casing 7-5/8" L-80 29.7 ppf BTC Top Bottom MD 0' 3,902' TVD 0' 3,453' 9-7/8" hole with 265sks (99 bbls) 12.0 ppg Type 1 Lead Cmt & 150sks (31 bbls) 15.8 ppg Class G Cmt Tail. Slight interface returns to surface. Production Liner 4-1/2" L-80 12.6 ppf Hydril 563 Top Bottom MD 3,685' 8,385' TVD 3,237' 7,934' 6-3/4" hole Cmt w/ 284 sks (210 bbls) 10.5 ppg Class G, 100% Returns. 25 bbls cmt returns. Tie-backTubing 4-1/2" L-80 12.6 ppf Hydril 563 Top Bottom MD 0' 3,667' TVD 0' 3,219' Chemical Injection Nipple @ 2,397' MD PBTD: 7,890' MD 7,439' TVD FISH DETAIL 36' of 3-3/8" HSC Perf guns Tagged @ 7,602' MD w/ 2.82" GR (1/19/10) Well Name & Number: Municipality: Perforations (MD): Angle @ KOP & Depth: Date Completed: Revised by: Paxton # 2 Kenai Peninsula Borough 4,302' - 7,574' ~ 2.5º / 100 ft, 325' - 1,300' 3/6/2008 Donna Ambruz Lease: State: Perf (TVD): Ninilchik Unit, ADL - 384372 Country: Angle @ Perfs: Ground Level: Revision Date: Alaska USA 3,853' - 7,123' ~ 1.5º RKB:150' (AMSL)21' (AGL) 12-02-20 4-1/2" CIBP @ 8,022' 4-1/2" CIBP @ 7,890' SCHEMATIC FISH DETAIL @ 3,244’ 11/28/20 Top of fish: 3244’ (33’ CTU BHA + 4266’ 1.75” velocity string) 3” Baker GS pulling tool, Rupture disc, Hyd Disco TJ fish neck, 3" GS pulling tool, Circ Sub, Hyd Disco w/TJ fish neck, 2-7/8" motor, Circ Sub, Hyd Disco w/ TJ fish neck 3.75" OS & Grapple 1.75" coil string top of pipe ~3268' fish CT fish 1. Type of Request: Abandon Plug Perforations Fracture Stimulate Repair Well Operations shutdown Suspend Perforate Other Stimulate Pull Tubing Change Approved Program Plug for Redrill Perforate New Pool Re-enter Susp Well Alter Casing Other: N2 2.Operator Name:4.Current Well Class:5. Permit to Drill Number: Exploratory Development 3.Address:Stratigraphic Service 6.API Number: 7.If perforating:8.Well Name and Number: What Regulation or Conservation Order governs well spacing in this pool? Will planned perforations require a spacing exception?Yes No 9. Property Designation (Lease Number):10. Field/Pool(s): 11. Total Depth MD (ft): Total Depth TVD (ft): Effective Depth MD: Effective Depth TVD: MPSP (psi):Plugs (MD):Junk (MD): 8,436'3,244' Casing Collapse Structural Conductor 1,500 psi Surface 2,090 psi Intermediate 4,790 psi Production Liner 7,500 psi Packers and SSSV Type:Packers and SSSV MD (ft) and TVD (ft): 12. Attachments: Proposal Summary Wellbore schematic 13. Well Class after proposed work: Detailed Operations Program BOP Sketch Exploratory Stratigraphic Development Service 14. Estimated Date for 15. Well Status after proposed work: Commencing Operations:OIL WINJ WDSPL Suspended 16.Verbal Approval:Date:GAS WAG GSTOR SPLUG Commission Representative: GINJ Op Shutdown Abandoned Taylor Wellman 777-8449 Contact Name: Jake Flora Operations Manager Contact Email: Contact Phone: 777-8442 Date: Conditions of approval: Notify Commission so that a representative may witness Sundry Number: Plug Integrity BOP Test Mechanical Integrity Test Location Clearance Other: Post Initial Injection MIT Req'd? Yes No Spacing Exception Required? Yes No Subsequent Form Required: APPROVED BY Approved by: COMMISSIONER THE COMMISSION Date: Comm. Comm. Sr Pet Eng Sr Pet Geo Sr Res Eng jake.flora@hilcorp.com 7,985'7,890'7,439'963 7890 & 8022 Perforation Depth TVD (ft): Tubing Size: Length Size COMMISSION USE ONLY Authorized Name: 8,430 psi Tubing Grade:Tubing MD (ft): See Attached Schematic STATE OF ALASKA ALASKA OIL AND GAS CONSERVATION COMMISSION APPLICATION FOR SUNDRY APPROVALS 20 AAC 25.280 FEE TRACT, ADL-384372 207-164 50-133-20573-00-00 Paxton #2 Ninilchik Unit - Beluga/Tyonek Gas Pool CO 701C Hilcorp Alaska, LLC 3800 Centerpoint Dr, Suite 1400 Anchorage Alaska 99503 PRESENT WELL CONDITION SUMMARY TVD Burst 3,667 MD 6,890 psi 3,060 psi 3,580 psi 114' 1,478' 3,453' 114' 1,617' 20" 10-3/4" 93' 7,934' ZXP Liner Packer; N/A Perforation Depth MD (ft): 7-5/8"3,881' 1,596' 3,902' See Attached Schematic 4-1/2" 3,667' MD/3,219' TVD; N/A 12.5# / L-80 Authorized Title: 17.I hereby certify that the foregoing is true and the procedure approved herein will not be deviated from without prior written approval. Authorized Signature: January 20, 2021 8,385'4,700' 4-1/2" Perforate Repair Wepair Well Exploratory Stratigraphic Development Service BOP TestMechanical Integrity Test Location Clearance No No Wellbore schematic Form 10-403 Revised 3/2020 Approved application is valid for 12 months from the date of approval. By Samantha Carlisle at 2:46 pm, Jan 06, 2021 321-002 Digitally signed by Taylor Wellman DN: cn=Taylor Wellman, ou=Users Date: 2021.01.06 14:30:40 -09'00' Taylor Wellman *2500 psi BOPE test (401) *4000 psi BOPE test (CTU) Pulll Tubing 10-404 X gls 1/7/21 DSR-1/6/21DLB 01/06/2021 GAS N2 Perforate f /CTU cement packer X * CBL required for 3.5" tubing after cement packer placement 401 Plug Perforations Comm 1/8/21 dts 1/7/2021 JLC 1/7/2021 RBDMS HEW 1/11/2021 Well Prognosis Well: Paxton 2 Date: 1/05/2021 Well Name: Paxton 2 API Number: 50-133-20573-00-00 Current Status: Gas Well Leg: N/A Estimated Start Date: 1/20/2020 Rig: 401 Reg. Approval Req’d? 10-403 Sundry Number: Regulatory Contact: Donna Ambruz 777-8305 Permit to Drill Number: 207-164 First Call Engineer: Jake Flora (907) 777-8442 (O) (720) 988-5375 (C) Second Call Engineer: Ted Kramer (907) 777-8420 (O) (907) 378-7323 (C) AFE Number Maximum Expected BHP: ~ 1233 psi @ 2705’ TVD Based on RFT Data Max. Potential Surface Pressure: ~ 963 psi Based on BHP minus 0.1 psi/ft gas Gradient Brief Well Summary: Paxton 2 was drilled and completed in 2008 in the Tyonek gas sands. A coil tubing velocity string was ran in May 2010 to aid the surfacing of water. August 2020 it while attempting to remove the velocity string it parted at 2704’. A subsequent fishing attempt in November 2020 recovered an additional ~535’ of coil velocity string and after several attempts left the top of the string with a fishing BHA at 3244’. During the fishing operation the tubing and IA pressures were observed to be tracking. Afterward fluid levels were shot while pressuring the IA with gas and it was confirmed that T x IA communication exist. Objective: The purpose of this Sundry is to cut and pull the 4-1/2” tubing from ~3240’, plug back the existing wellbore, run a 3-1/2” cemented completion to provide a monitorable annulus and monobore for perforating up-hole Beluga pays. Wellbore: - Max deviation is 39 degrees at 2341’ - Top of coil BHA fish at 3244’ Pre Rig Work 1. MIRU E-Line, PT Lubricator. 2. Jet cut 4.5” tieback at 3244’ Rig 401 Procedure 3. MIRU 401 workover rig. Provide 24hr notice to AOGCC of BOP Test. 4. Circulate well to KWF. 5. Set BPV, ND Tree, NU BOP. 6. Perform BOP Test 250 psi low & 2,500 psi high, annular to 250 psi low & 2,500 psi high. Record with chart & submit to AOGCC within 5 days of test. 7. Pull and lay down 4.5” tieback. 8. RU E-Line. RIH with gauge ring to top of fish. Log CBL from top of fish (~3244’) to surface and submit to AOGCC. Set 7-5/8” CIBP at ~ 3240’. No cement top planned. 9. MIT CIBP to 1500 psi with chart recorder. s confirmed that T x IA communication exist. fishing BHA at 3244’ CIBP at 3240 ft MIT casing approved... Will place cement above during liner cement program. gls 4.5" cut Cut 4.5 " tubing Well Prognosis Well: Paxton 2 Date: 1/05/2021 a. Contingent scraper run if any trouble getting CIBP down. 10. Run new 3-1/2” 9.3# L-80 tubing to ~3235’ with float shoe, float collar, 20’ shoe track. New PBTD estimated at ~3215’. 11. RU cement head, mix and pump 75bbls 15.3# cement down tubing with returns up IA. Drop wiper plug, displace with 28 bbls to bump plug. Hold pressure, WOC. Planned TOC is 1000’. 12. ND BOP, NU Tree, RDMO. Wireline Procedure 13. MIRU Slickline. PT Lubricator. RIH with gauge ring to PBTD. Log Memory CBL from TD to surface and send to the AOGCC. Swab well down. Pressure up well with Nitrogen or well gas. 14. MIRU E-line. PT Lubricator. 15. Perforate the following Sand intervals: a. Proposed perfs also shown on the proposed schematic in red font. b. Final Perfs tie-in sheet will be provided in the field for exact perf intervals. c. Correlate using Open Hole Correlation Log provided by Geologist. Send the correlation pass to the Operations Engineer, Reservoir Engineer, and Geologist for confirmation. Consult with RE/Geo between each perf interval: i. Anthony McConkey: RE - 529-6199 Sand Perforation Top (MD) Perforation Bottom (MD) Perforation Top (TVD) Perforation Bottom (TVD) Total Footage (MD) Expected BHP (psi) BEL_23 ± 1,811' ± 1,816' ±1,642' ±1,646' 5' 678 (RFT) BEL_25 ± 1,822' ± 1,828' ±1,651' ±1,656' 6' 664 (RFT) BEL 34 ± 1,893' ± 1,899' ±1,707' ±1,712' 6' 713 (RFT) BEL 37 ± 1,930' ± 1,940' ±1,736' ±1,744' 10' 732 (RFT) BEL 41U ± 2,007' ± 2,017' ±1,797' ±1,805' 10' 574 (RFT) BEL 41L ± 2,022' ± 2,032' ±1,809' ±1,817' 10' 574 (RFT) BEL 44 ± 2,067' ± 2,075' ±1,845' ±1,852' 8' 694 (RFT) BEL 45U ± 2,090' ± 2,108' ±1,863' ±1,878' 18' 650 (RFT) BEL 45L ± 2,109' ± 2,130' ±1,878' ±1,895' 21' 650 (RFT) BEL 48 ± 2,196' ± 2,202' ±1,947' ±1,952' 6' 750 (RFT) BEL 50 ± 2,349' ± 2,369' ±2,067' ±2,082' 20' 562 (RFT) BEL_53L ± 2,542' ± 2,552' ±2,218' ±2,226' 10' 320 (RFT) BEL_56 ± 2,656' ± 2,681' ±2,308' ±2,328' 25' 965 (RFT in 2017) BEL_59 ± 2,829' ± 2,835' ±2,448' ±2,453' 6' 889 (RFT) BEL_72 ± 2,995' ± 3,003' ±2,589' ±2,596' 8' 1142 (RFT) BEL_74 ± 3,087' ± 3,095' ±2,670' ±2,677' 8' 1182 (RFT) BEL_75 ± 3,127' ± 3,133' ±2,705' ±2,711' 6' 1233 (RFT) BEL_80 ± 3,160' ± 3,166' ±2,735' ±2,741' 6' 1,150 (RFT) gls 1/6/21 (bottom to top) 12a. Pressture test 3.5" tubing to 1500 psi /30 min 12b.WOC and Pressure test new IA to 1500 psi / 30 min Well Prognosis Well: Paxton 2 Date: 1/05/2021 ii. Matthew Petrowsky: Geo – 814-421-6753 d. Install Crystal gauges (or verify PTs are open to SCADA) before perforating. Record tubing Surface pressure before each run and after each gun firing of 5, 10, 15 min reading intervals. e. The listed Sands are governed by Conservation Order 701C and CO 690. Comingling of pools is allowed under the same Order. f. Sand intervals may be grouped or shot one at a time and flow tested to the system. If a sand makes water, then a plug or an isolation patch may be set prior to moving up to the next sand interval. 16. POOH. RD e-line. 17. Turn well over to production. CONTINGENCY NITROGEN BLOWDOWN WITH COIL TUBING CONTINGENCY IF UNABLE TO SWAB Sundry completion work: 1. NOTIFY AOGCC 24hrs in advance of CTU BOP Test. 2. MIRU Coiled Tubing Unit. 3. PT BOP equipment to 250 psi Low / 4,000 psi High. (Notify AOGCC 24 hrs. in advance on BOP test. 4. MU nozzle, and RIH to TD. 5. RU N2 pumping unit. 6. Blow well dry with N2 taking returns to tanks. 7. Once well is dry, leave N2 pressure on well per OE for the first perforation interval. 8. POOH w/ coil. RDMO CTU. Attachments: 1. Current Well Schematic 2. Proposed Well Schematic 3. Rig 401 BOP Schematic 4. Coil BOP Schematic 5. Standard Nitrogen Procedure 6. RWO Change Form Formation Tops: Formation Depth (MD)Depth (SSTVD) Beluga Tyonek TKT 3,946' 3,328 Tyonek T2 4,896' 4,278' Tyonek T3 6,048' 5,430' TD 8,448' 8,000' KOP @ 325' MD/TVD Build 4.0 deg/100' from 487-1362' MD Hold 38.35 deg from 1362-2668' MD Drop 3.0 deg/100' to 3918' MD Hold 0 deg from 3918' to TD at 8448' MD Paxton #2 Ninilchik Unit 746' FNL, 2,914' FEL Sec. 13, T1S, R14W, S.M. Tubing String - 4.5", 12.6#, L-80, Hydril 563 Casing String - 4.5", 12.6#, L-80, Hydril 563 * Baker Chemical Injection Nipple @2,397' MD (Top) 5.750" OD/3.895" ID * ZXP Liner Packer with 6' Tieback Extension @ 3,667' MD (Top) * Flex-Lock Liner Hanger @ 3701' MD (Top) * Marker Joint Top @7987' MD (20' long) * Marker Joint Top @7012' MD (20' long) KB: 21' AGL (171' KB Elev) API #: 50-133-20573-00-00 Permit #: 207-1640 Property Des: ADL - 384372 WBS #: DD.07.16241.CAP X= 206,414.356 (NAD27) Y= 2,230,614.114 (NAD27) Lat: 60º 05' 43.394" N Long: 151º 36' 38.544" W Spud: 06:30 hrs 01/18/2008 TD: 06:00 hrs 2/1/2008 Rig Released: 18:00 hrs 2/15/2008 TD: 8,436' MD 7,985' TVD Expro Radial Bond Log (2/19/08) Conductor 20" K-55 133 ppf PE Top Bottom MD 0' 114 TVD 0' 114' Surface Casing 10-3/4" J-55 45.5 ppf BTC Top Bottom MD 0' 1,617' TVD 0' 1,487' 13-1/2" hole with 457sks (202 bbls) 12 ppg Type 1 Cmt with 100% returns and 40 bbls Cmt to surface. Intermediate Casing 7-5/8" L-80 29.7 ppf BTC Top Bottom MD 0' 3,902' TVD 0' 3,453' 9-7/8" hole with 265sks (99 bbls) 12.0 ppg Type 1 Lead Cmt & 150sks (31 bbls) 15.8 ppg Class G Cmt Tail. Slight interface returns to surface. Production Liner 4-1/2" L-80 12.6 ppf Hydril 563 Top Bottom MD 3,685' 8,385' TVD 3,237' 7,934' 6-3/4" hole Cmt w/ 284 sks (210 bbls) 10.5 ppg Class G, 100% Returns. 25 bbls cmt returns. Tie-backTubing 4-1/2" L-80 12.6 ppf Hydril 563 Top Bottom MD 0' 3,667' TVD 0' 3,219' Chemical Injection Nipple @ 2,397' MD PBTD: 7,890' MD 7,439' TVD FISH DETAIL 36' of 3-3/8" HSC Perf guns Tagged @ 7,602' MD w/ 2.82" GR (1/19/10) Well Name & Number: Municipality: Perforations (MD): Angle @ KOP & Depth: Date Completed: Revised by: Paxton # 2 Kenai Peninsula Borough 4,302' -7,574' ~ 2.5º / 100 ft, 325' -1,300' 3/6/2008 Donna Ambruz Lease: State: Perf (TVD): Ninilchik Unit, ADL -384372 Country: Angle @ Perfs: Ground Level: Revision Date: Alaska USA 3,853' -7,123' ~ 1.5º RKB:150' (AMSL)21' (AGL) 12-02-20 4-1/2" CIBP @ 8,022' 4-1/2" CIBP @ 7,890' SCHEMATIC FISH DETAIL @ 3,244’ 11/28/20 Top of fish: 3244’ (33’ CTU BHA + 4266’ 1.75” velocity string) 3” Baker GS pulling tool, Rupture disc, Hyd Disco TJ fish neck, 3" GS pulling tool, Circ Sub, Hyd Disco w/TJ fish neck, 2-7/8" motor, Circ Sub, Hyd Disco w/ TJ fish neck 3.75" OS & Grapple 1.75" coil string top of pipe ~3268' 7-5/8" calculated TOC @ 1100' fish at 3244 ft Formation Tops: Formation Depth (MD)Depth (SSTVD) Beluga Tyonek TKT 3,946' 3,328 Tyonek T2 4,896' 4,278' Tyonek T3 6,048' 5,430' TD 8,448' 8,000' KOP @ 325' MD/TVD Build 4.0 deg/100' from 487-1362' MD Hold 38.35 deg from 1362-2668' MD Drop 3.0 deg/100' to 3918' MD Hold 0 deg from 3918' to TD at 8448' MD Paxton #2 Ninilchik Unit 746' FNL, 2,914' FEL Sec. 13, T1S, R14W, S.M. * ZXP Liner Packer with 6' Tieback Extension @ 3,667' MD (Top) * Flex-Lock Liner Hanger @ 3701' MD (Top) KB: 21' AGL (171' KB Elev) API #: 50-133-20573-00-00 Permit #: 207-1640 Property Des: ADL - 384372 WBS #: DD.07.16241.CAP X= 206,414.356 (NAD27) Y= 2,230,614.114 (NAD27) Lat: 60º 05' 43.394" N Long: 151º 36' 38.544" W Spud: 06:30 hrs 01/18/2008 TD: 06:00 hrs 2/1/2008 Rig Released: 18:00 hrs 2/15/2008 TD: 8,436' MD 7,985' TVD Expro Radial Bond Log (2/19/08) Conductor 20" K-55 133 ppf PE Top Bottom MD 0' 114 TVD 0' 114' Surface Casing 10-3/4" J-55 45.5 ppf BTC Top Bottom MD 0' 1,617' TVD 0' 1,487' 13-1/2" hole with 457sks (202 bbls) 12 ppg Type 1 Cmt with 100% returns and 40 bbls Cmt to surface. Intermediate Casing 7-5/8" L-80 29.7 ppf BTC Top Bottom MD 0' 3,902' TVD 0' 3,453' 9-7/8" hole with 265sks (99 bbls) 12.0 ppg Type 1 Lead Cmt & 150sks (31 bbls) 15.8 ppg Class G Cmt Tail. Slight interface returns to surface. Production Liner 4-1/2" L-80 12.6 ppf Hydril 563 Top Bottom MD 3,685' 8,385' TVD 3,237' 7,934' 6-3/4" hole Cmt w/ 284 sks (210 bbls) 10.5 ppg Class G, 100% Returns. 25 bbls cmt returns. Tie-backTubing 4-1/2" L-80 12.6 ppf Hydril 563 Top Bottom MD 0' 3,667' TVD 0' 3,219' PBTD: 7,890' MD 7,439' TVD FISH DETAIL 36' of 3-3/8" HSC Perf guns Tagged @ 7,602' MD w/ 2.82" GR (1/19/10) Tagged @ 7,782' MD (12/22/08) Well Name & Number: Municipality: Perforations (MD): Angle @ KOP & Depth: Date Completed: Revised by: Paxton # 2 Kenai Peninsula Borough 4,302' -7,574' ~ 2.5º / 100 ft, 325' -1,300' 3/6/2008 Jake Flora Lease: State: Perf (TVD): Ninilchik Unit, ADL -384372 Country: Angle @ Perfs: Ground Level: Revision Date: Alaska USA 3,853' -7,123' ~ 1.5º RKB:150' (AMSL)21' (AGL) 01-02-21 CIBP @ 8,022' CIBP @ 7,890' PROPOSED FISH DETAIL @ 3,244’ 11/28/20 Top of fish: 3244’ (33’ CTU BHA + 4266’ 1.75” velocity string) 3” Baker GS pulling tool, Rupture disc, Hyd Disco TJ fish neck, 3" GS pulling tool, Circ Sub, Hyd Disco w/TJ fish neck, 2-7/8" motor, Circ Sub, Hyd Disco w/ TJ fish neck 3.75" OS & Grapple 1.75" coil string top of pipe ~3268' 3-1/2" x 7-5/8" TOC planned for 1000' 7-5/8" TOC calculated at 1100' * new CBL will be run during RWO ~3240' CIBP 3244' Top of Fish 1811' - 3166' Proposed Beluga Perforations(see table in program) ~3215 Planned PBTD (float collar)~3235 3-1/2" Casing (float shoe) Cement Calculations: 3-1/2 x 7-5/8 Annulus .0340 bpf 2200' x .0340 = 75 bbls cement 3215' x .0087bpf = 28 bbls ok 1614 ft MIT-IA to 1500 psi Coiled Tubing Services Pressure Category 1 BOP Configuration (0-3,500 psi) Client: Hilcorp Date: April 3rd, 2017 Drawn: Chad Barrett Revision: 0 Well Category: CAT I 4-1/16" 10K Combi BOP Top Set: Blind/Shear Second Set: Pipe/Slip Wellhead 4-1/16" 10K Conventional Stripper 4-1/16" 10K x Wellhead Adapter Flange 5K CO62 x 4-1/16" 10K Flange 5K CO62 Lubricator 4-1/16" 10K Flow Cross Manual 2x2 Valve 1: 2" 1502 x 2-1/16" 10K Flange Manual 2x2 Valve 2: 2-1/16" 10K x 2-1/16" 10K Flange Manual 2x2 Valve 3: 2-1/16" 10K x 2-1/16" 10K Flange Manual 2x2 Valve 4: 2" 1502 x 2-1/16" 10K Flange 21 3 4 WH PSI 2" 1502 x 2-1/16 10K Flanged Valve (Manual) 2-1/16 10K x 2-1/16 10K Flanged Valve (Manual) Kill Port Coiled Tubing HR580 Injector Head & Gooseneck Weight = 12,850 lbs Beaver Creek Field BCU 19RD 11/12/2020 STANDARD WELL PROCEDURE NITROGEN OPERATIONS 12/08/2015 FINAL v1 Page 1 of 1 1.) MIRU Nitrogen Pumping Unit and Liquid Nitrogen Transport. 2.) Notify Pad Operator of upcoming Nitrogen operations. 3.) Perform Pre-Job Safety Meeting. Review Nitrogen vendor standard operating procedures and appropriate Safety Data Sheets (formerly MSDS). 4.) Document hazards and mitigation measures and confirm flow paths. Include review on asphyxiation caused by nitrogen displacing oxygen. Mitigation measures include appropriate routing of flowlines, adequate venting and atmospheric monitoring. 5.) Spot Pumping Unit and Transport. Confirm liquid N2 volumes in transport. 6.) Rig up lines from the Nitrogen Pumping Unit to the well and returns tank. Secure lines with whip checks. 7.) Place signs and placards warning of high pressure and nitrogen operations at areas where Nitrogen may accumulate or be released. 8.) Place pressure gauges downstream of liquid and nitrogen pumps to adequately measure tubing and casing pressures. 9.) Place pressure gauges upstream and downstream of any check valves. 10.) Wellsite Manager shall walk down valve alignments and ensure valve position is correct. 11.) Ensure portable 4-gas detection equipment is onsite, calibrated, and bump tested properly to detect LEL/H2S/CO2/O2 levels. Ensure Nitrogen vendor has a working and calibrated detector as well that measures O2 levels. 12.) Pressure test lines upstream of well to approved sundry pressure or MPSP (Maximum Potential Surface Pressure), whichever is higher. Test lines downstream of well (from well to returns tank) to 1,500 psi. Perform visual inspection for any leaks. 13.) Bleed off test pressure and prepare for pumping nitrogen. 14.) Pump nitrogen at desired rate, monitoring rate (SCFM) and pressure (PSI). All nitrogen returns are to be routed to the returns tank. 15.) When final nitrogen volume has been achieved, isolate well from Nitrogen Pumping Unit and bleed down lines between well and Nitrogen Pumping Unit. 16.) Once you have confirmed lines are bled down, no trapped pressure exists, and no nitrogen has accumulated begin rig down of lines from the Nitrogen Pumping Unit. 17.) Finalize job log and discuss operations with Wellsite Manager. Document any lessons learned and confirm final rates/pressure/volumes of the job and remaining nitrogen in the transport. 18.) RDMO Nitrogen Pumping Unit and Liquid Nitrogen Transport. Hilcorp Alaska, LLC Hilcorp Alaska, LLC Changes to Approved Rig Work Over Sundry Procedure Subject: Changes to Approved Sundry Procedure for Well Paxton 2 (PTD 207-164) Sundry #: Any modifications to an approved sundry will be documented and approved below. Changes to an approved sundry will be communicated to the AOGCC by the rig workover (RWO) “first call” engineer. AOGCC written approval of the change is required before implementing the change. Sec Page Date Procedure Change New 403 Required? Y / N HAK Prepared By (Initials) HAK Approved By (Initials) AOGCC Written Approval Received (Person and Date) Approval: Asset Team Operations Manager Date Prepared: First Call Operations Engineer Date From: Roby. David S (CED) To: Mike Ouick Cc: Schwartz. Guy L (CED): i nepp. victoria T (CED); Rixse Melvin G ( D); Davies Stephen F (CED): Boyer, David (CED); Donna Ambruz Subject: RE: [EXTERNAL] Sundry Application for Paxton 2 (PTD 207-164) Date: Tuesday, lune 30, 2020 4:58:40 PM Hi Mike, Thanks for the update. Haven't actually had the boat out yet. Hope to get it out next weekend. Have a good one. Dave Roby 907-793-1232 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 a -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 Dave Roby at 907-793-1232 or dave robv(@alaska eov. From: Mike Quick <mquick@hilcorp.com> Sent: Tuesday, June 30, 20204:57 PM To: Roby, David S (CED) <dave.roby@alaska.gov> Cc: Schwartz, Guy L (CED) <guy.schwartz@alaska.gov>; Loepp, Victoria T (CED) <victoria.loepp@alaska.gov>; Rixse, Melvin G (CED) <melvin.rixse@alaska.gov>; Davies, Stephen F (CED) <steve.davies@alaska.gov>; Boyer, David L (CED) <david.boyer2@alaska.gov>; Donna Ambruz <dambruz@hilcorp.com> Subject: Re: [EXTERNAL] Sundry Application for Paxton 2 (PTD 207-164) Hi Dave! I am doing well, hope that you are as well. Summer has been great so far. Have you had the boat out much? Yes, all the perforations fall within the defined limits of the Beluga/Tyonek Gas Pool. We apologize for the error on the sundry form and appreciate the assistance in correcting it. Thank you, Mike On Jun 30, 2020, at 3:46 PM, Roby, David S (CED) <da�oby@alaska gov> wrote: Hi Mike, How's it going? In reviewing the subject sundry application I notice that in box 10— Field/Pool the pool is listed as SD Tyonek Undef, I also notice that under type of request you have Perforate, Perforate New Pool, and Other: Pull V String checked. However, I don't think pool is listed correctly and I don't think you'll be perforating a new pool. With CO 701, issued in 2014, the Beluga/Tyonek Gas Pool was defined in the Ninilchik Unit. The areal extent of the pool seems to encompass the entire wellbore of Paxton 2 and, as the name implies, the pool includes both Beluga and Tyonek sands. We've assigned all production from this well to the Beluga/Tyonek Gas Pool. So long as your proposed perfs in the Beluga do not go above the upper limit of the defined pool this would not be a request to Perforate New Pool. Can you please verify whether or not the proposed pers would remain within the defined limits of the Beluga/Tyonek Gas Pool? If you'll verify this info we can make the appropriate changes to the sundry application for you and there'd be no need for you to resubmit it. Thanks in advance. Regards, David Roby Senior Reservoir Engineer Alaska Oil and Gas Conservation Commission 907-793-1232 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 Dave Roby at 907-793-1232 or da ve rnbv Palaska eov. The information contained in this email message is confidential and may be legally privileged and is intended only for the use of the individual or entity named above. If you are not an intended recipient or if you have received this message in error, you are hereby notified that any dissemination, distribution, or copy of this email is strictly prohibited. If you have received this email in error, please immediately notify us by return email or telephone if the senders phone number is listed above, then promptly and permanently delete this message. While all reasonable care has been taken to avoid the transmission of viruses, it is the responsibility of the recipient to ensure that the onward transmission, opening, or use of this message and any attachments will not adversely affect its systems or data. No responsibility 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: Pull V String 2.Operator Name:4.Current Well Class:5. Permit to Drill Number: Exploratory Development 3.Address:Stratigraphic Service 6.API Number: 7.If perforating:8.Well Name and Number: What Regulation or Conservation Order governs well spacing in this pool? Will planned perforations require a spacing exception?Yes No 9. Property Designation (Lease Number):10. Field/Pool(s): 11. Total Depth MD (ft): Total Depth TVD (ft): Effective Depth MD: Effective Depth TVD: MPSP (psi):Plugs (MD):Junk (MD): 8,436'7,782' Casing Collapse Structural Conductor 1,500 psi Surface 2,090 psi Intermediate 4,790 psi Production Liner 7,500 psi Packers and SSSV Type:Packers and SSSV MD (ft) and TVD (ft): 12. Attachments: Proposal Summary Wellbore schematic 13. Well Class after proposed work: Detailed Operations Program BOP Sketch Exploratory Stratigraphic Development Service 14. Estimated Date for 15. Well Status after proposed work: Commencing Operations:OIL WINJ WDSPL Suspended 16.Verbal Approval:Date:GAS WAG GSTOR SPLUG Commission Representative: GINJ Op Shutdown Abandoned Taylor Wellman 777-8449 Contact Name: Mike Quick Operations Manager Contact Email: Contact Phone: 777-8442 Date: Conditions of approval: Notify Commission so that a representative may witness Sundry Number: Plug Integrity BOP Test Mechanical Integrity Test Location Clearance Other: Post Initial Injection MIT Req'd? Yes No Spacing Exception Required? Yes No Subsequent Form Required: APPROVED BY Approved by: COMMISSIONER THE COMMISSION Date: Comm. Comm. Sr Pet Eng Sr Pet Geo Sr Res Eng 7,934' ZXP Liner Packer; N/A Perforation Depth MD (ft): 3,667' MD/3,219' TVD; N/A 12.5# / L-80 Authorized Title: 17.I hereby certify that the foregoing is true and the procedure approved herein will not be deviated from without prior written approval. Authorized Signature: July 7, 2020 8,385'4,700' 4-1/2" 7-5/8"3,881' 1,596' 3,902' See Attached Schematic 4-1/2" 3,453' 114' 1,617' 20" 10-3/4" 93' Burst 3,667 MD 6,890 psi 3,060 psi 3,580 psi 114' 1,478' Hilcorp Alaska, LLC 3800 Centerpoint Dr, Suite 1400 Anchorage Alaska 99503 PRESENT WELL CONDITION SUMMARY TVD STATE OF ALASKA ALASKA OIL AND GAS CONSERVATION COMMISSION APPLICATION FOR SUNDRY APPROVALS 20 AAC 25.280 ADL-384372 207-164 50-133-20573-00-00 Paxton #2 Ninilchik Unit / SD Tyonek Undef CO 701C COMMISSION USE ONLY Authorized Name: 8,430 psi Tubing Grade: Tubing MD (ft): See Attached Schematic mquick@hilcorp.com 7,985'7,890'7,439'1504 psi 7890 & 8022 Perforation Depth TVD (ft): Tubing Size: Length Size Perforate Repair Wepair Well Exploratory Stratigraphic Development Service BOP TestMechanical Integrity Test Location Clearance No No Wellbore schematic Form 10-403 Revised 3/2020 Approved application is valid for 12 months from the date of approval. By Samantha Carlisle at 2:59 pm, Jun 30, 2020 320-281 Digitally signed by Taylor Wellman DN: cn=Taylor Wellman, ou=Users Date: 2020.06.30 14:08:35 -08'00' Taylor Wellman FEE-TRACT, SFD 6/30/2020 Beluga/Tyonek Gas Pool SFD 6/30/2020 SFD 6/30/2020 DSR-6/30/2020SFD 7/1/2020 10-404X X BOP test pressure to 4000 psig VTL 7/7/20Comm. 7/7/2020 dts 7/7/2020 RBDMS HEW 7/8/2020 Well Prognosis Well: Paxton 2 Date: 6/24/2020 Well Name: Paxton 2 API Number: 50-133-20573-00-00 Current Status: Gas Well Leg: N/A Estimated Start Date: 7/7/2020 Rig: Coil/Eline Reg. Approval Req’d? 10-403 Sundry Number: Regulatory Contact: Donna Ambruz 777-8305 Permit to Drill Number: 207-164 First Call Engineer: Michael Quick (907) 777-8442 (O) (907) 317-2969 (C) Second Call Engineer: Ted Kramer (907) 777-8420 (O) (907) 378-7323 (C) AFE Number Maximum Expected BHP: ~ 1,935 psi @ 4,315’ TVD Based on normal gradient (0.45 psi/ft) Max. Potential Surface Pressure: ~ 1,504 psi Based on normal gradient minus 0.1 psi/ft gas Gradient Brief Well Summary: Paxton 2 was drilled and completed in 2008 in the Tyonek gas sands. A coil tubing velocity string was ran in May 2010 to aid the surfacing of water. Objective: The purpose of this sundry is to remove the coil tubing velocity string and perforate additional Tyonek sand and add Beluga gas sands. Pre-Coil Work 1. MIRU Slickline. Pressure Test lubricator to 250 psi Low / 2,500 psi High. 2. Set X plug in XN Nipple @ 7,535’. 3. Load velocity string with produced water. Pressure test plug to 500 psi for 15 min. 4. Pump +/-30 bbls of produced fluid down 1.75” Coil by 4-1/2” tubing IA to kill well. Bleed off any pressure on well, verify well is dead. Coil Tubing Procedure 5. MIRU Coil tubing unit. Pressure test BOP to 250 psi low / 4,000 psi high. Notify AOGCC 24 hours in advance of BOP test. 6. Make up MHA with hydraulic disconnect. Pull test 30K. Install 3” GS spear. Stab on well with lubricator and Pressure test 250/3000 psi. 7. RIH and latch coil hanger GS profile. Perform push pull test against hanger seals. Pull test to the estimated V string weight. 8. Slack off to V string hanging weight and back out upper hanger lock down screws. 9. Measure from Bottom CT hanger bolts to 3’ +/- above coil BOPE stack. Pull v string above BOPE and close pipe rams and slip rams. Perform Push pull test against rams to ensure good engagement. 10. Drop chain tension, traction, and pack off pressure. Roll chains in hole and break friction bite. 11. Unscrew Lubricator connection on top of BOPE stack. With chains rolling in hole pick/strip injector head off tree to expose V string. 12. Stop injector chains. Apply traction and tensions to regain control of CT on injector /reel side. perforate additional Tyonek sand and add Beluga gas sands. Well Prognosis Well: Paxton 2 Date: 6/24/2020 13. Cut coil below CT hanger. Swing crane and injector head to side of well house and RIH to break down MHA. 14. Dress each side of coiled tubing (well bore V string and 1.75” CT whip end from injector head.) 15. Make up coil connector on V string completion. 16. Bring crane over and stab double roll on connector from injector head coil to completion coil and roll on. 17. Drop chain traction and tension. Break friction by POOH with chains and lower injector/lubricator by stripping back down to BOPE stack. 18. Screw on lubricator threads to BOPE top. Re apply injector head chain tension and traction. Increase pack off pressure. Perform pull test of double roll on connector to actual CT weight seen while lifting coil from hanger to above BOPE stack. 19. With triplex pump fluid pack lubricator above BOPE and pressure test 250/3000 psi for 5 minutes. 20. Open EQ ports on Pipe and slip rams to equalize pressure above and below rams prior to opening. 21. Open pipe rams and then slip rams. 22. Travel with V string in each direction watching weight. Ensure coil completion is free. 23. Spool V string OOH. Watch weight indicator when double roll on connector passes through Injector head pack off assembly. 24. Keep area between wellhead and coil spooler clear of personnel until double roll on connector had made 2 full wraps on reel. 25. Spool V string OOH and tag up on BHA. Close master and swab valve. 26. Purge residual fluid out of V string with N2 once at surface. 27. Pop off well and break down V string BHA. 28. RD stand back CTU. 29. Turn well over to production to flow and unload water. Contingency Coil Tubing Procedure: If well will not flow/unload water, rig up Coil and N2 to blow well dry: a. MIRU Coil tubing unit. Pressure test BOP to 4,000 psi high, 250 psi low. b. RU Nitrogen. RIH W/ Coil, drop ball, and blow well dry with Nitrogen leaving 1,000 psi on well head. RDMO Nitrogen and CTU. E-line Procedure 30. MIRU E-line. Pressure test lubricator to 250 psi low / 3,000 psi high. 31. Perforate the following Sand intervals: Perforation TOP Perforation BTM Sand Interval Expected Pressure 4,004’ MD (3555’ TVD) 4,017’ MD (3568’ TVD) Beluga 134 380 psi (Depleted – Kal 2 RFT) 4,031’ MD (4288’ TVD) 4,047 MD (4598’ TVD) Beluga 134A 380 psi (Depleted – Kal 2 RFT) 4,058’ MD (3609’ TVD) 4,075’ MD (3626’ TVD) Beluga 135 380 psi (Depleted – Kal 2 RFT) 4,136 MD (3687’ TVD) 4,150’ MD (3701’ TVD) Beluga 136 (Upper) 450 psi (Depleted – Kal 3 RFT) Well Prognosis Well: Paxton 2 Date: 6/24/2020 4,160’ MD (3711 TVD) 4,190’ MD (3741’ TVD) Beluga 136 (Lower) 450 psi (Depleted – Kal 3 RFT) 4,734’ MD (4285’ TVD) 4,764’ MD (4315’ TVD) Tyonek 7 (T7) 1935 psi (~0.45psi/ft gradient) a. Proposed perfs also shown on the proposed schematic in red font. b. Final Perfs tie-in sheet will be provided in the field for exact perf intervals. c. Correlate using Open Hole Correlation Log provided by Geologist. Send the correlation pass to the Operations Engineer, Reservoir Engineer, and Geologist for confirmation (Ben Siks- Geologist, Trudi Hallett – Reservoir Engineer). d. Install Crystal gauges (or verify PTs are open to SCADA) before perforating. Record tubing Surface pressure before each run and after each gun firing of 5, 10, 15 min reading intervals. e. The listed Sands are governed by Conservation Order 701C and CO 690. Comingling of pools is allowed under the same Order. f. Sand intervals may be grouped or shot one at a time and flow tested to the system. If a sand makes water, then a plug or an isolation patch may be set prior to moving up to the next sand interval. 32. POOH. RD e-line. 33. Turn well over to production. Attachments: 1. Current Well Schematic 2. Proposed Well Schematic 3. Coil BOP Schematic 4. Current Well Head Drawing 5. Proposed Well Head Drawing 6. Standard Nitrogen Procedure governed by Conservation Order 701C and CO 690. Comingling of gy pools is allowed under the same Order.SFD 6/30/2020 Formation Tops: Formation Depth (MD)Depth (SSTVD) Beluga Tyonek TKT 3,946' 3,328 Tyonek T2 4,896' 4,278' Tyonek T3 6,048' 5,430' TD 8,448' 8,000' KOP @ 325' MD/TVD Build 4.0 deg/100' from 487-1362' MD Hold 38.35 deg from 1362-2668' MD Drop 3.0 deg/100' to 3918' MD Hold 0 deg from 3918' to TD at 8448' MD Paxton #2 Ninilchik Unit 746' FNL, 2,914' FEL Sec. 13, T1S, R14W, S.M. Tubing String - 4.5", 12.6#, L-80, Hydril 563 Casing String - 4.5", 12.6#, L-80, Hydril 563 * Baker Chemical Injection Nipple @2,397' MD (Top) 5.750" OD/3.895" ID * ZXP Liner Packer with 6' Tieback Extension @ 3,667' MD (Top) * Flex-Lock Liner Hanger @ 3701' MD (Top) * Marker Joint Top @7987' MD (20' long) * Marker Joint Top @7012' MD (20' long) KB: 21' AGL (171' KB Elev) API #: 50-133-20573-00-00 Permit #: 207-1640 Property Des: ADL - 384372 WBS #: DD.07.16241.CAP X= 206,414.356 (NAD27) Y= 2,230,614.114 (NAD27) Lat: 60º 05' 43.394" N Long: 151º 36' 38.544" W Spud: 06:30 hrs 01/18/2008 TD: 06:00 hrs 2/1/2008 Rig Released: 18:00 hrs 2/15/2008 TD: 8,436' MD 7,985' TVD Expro Radial Bond Log (2/19/08) Conductor 20" K-55 133 ppf PE Top Bottom MD 0' 114 TVD 0' 114' Surface Casing 10-3/4" J-55 45.5 ppf BTC Top Bottom MD 0' 1,617' TVD 0' 1,487' 13-1/2" hole with 457sks (202 bbls) 12 ppg Type 1 Cmt with 100% returns and 40 bbls Cmt to surface. Intermediate Casing 7-5/8" L-80 29.7 ppf BTC Top Bottom MD 0' 3,902' TVD 0' 3,453' 9-7/8" hole with 265sks (99 bbls) 12.0 ppg Type 1 Lead Cmt & 150sks (31 bbls) 15.8 ppg Class G Cmt Tail. Slight interface returns to surface. Production Liner 4-1/2" L-80 12.6 ppf Hydril 563 Top Bottom MD 3,685' 8,385' TVD 3,237' 7,934' 6-3/4" hole Cmt w/ 284 sks (210 bbls) 10.5 ppg Class G, 100% Returns. 25 bbls cmt returns. Tie-backTubing 4-1/2" L-80 12.6 ppf Hydril 563 Top Bottom MD 0' 3,667' TVD 0' 3,219' Chemical Injection Nipple @ 2,397' MD PBTD: 7,890' MD 7,439' TVD 36' of 3-3/8" HSC Perf guns Tagged @ 7,602' MD w/ 2.82" GR (1/19/10) Tagged @ 7,782' MD (12/22/08) Well Name & Number: Municipality: Perforations (MD): Angle @ KOP & Depth: Date Completed: Revised by: Paxton # 2 Kenai Peninsula Borough 4,302' -7,574' ~ 2.5º / 100 ft, 325' -1,300' 3/6/2008 Donna Ambruz Lease: State: Perf (TVD): Ninilchik Unit, ADL -384372 Country: Angle @ Perfs: Ground Level: Revision Date: Alaska USA 3,853' -7,123' ~ 1.5º RKB:150' (AMSL)21' (AGL) 06-09-20 4-1/2" CIBP @ 8,022' 4-1/2" CIBP @ 7,890' Velocity String (Installed on 5/15/10) 1-3/4" HO-70 Top Bottom MD 0' 7,535' TVD 0' 7,084' BHA: 10' Straight Bar 2.5" OD 8.5" XN Profile Nipple 2.5" OD 8" WL Entry Guide 2.5" OD SCHEMATIC Formation Tops: Formation Depth (MD)Depth (SSTVD) Beluga Tyonek TKT 3,946' 3,328 Tyonek T2 4,896' 4,278' Tyonek T3 6,048' 5,430' TD 8,448' 8,000' KOP @ 325' MD/TVD Build 4.0 deg/100' from 487-1362' MD Hold 38.35 deg from 1362-2668' MD Drop 3.0 deg/100' to 3918' MD Hold 0 deg from 3918' to TD at 8448' MD Paxton #2 Ninilchik Unit 746' FNL, 2,914' FEL Sec. 13, T1S, R14W, S.M. Tubing String - 4.5", 12.6#, L-80, Hydril 563 Casing String - 4.5", 12.6#, L-80, Hydril 563 * Baker Chemical Injection Nipple @2,397' MD (Top) 5.750" OD/3.895" ID * ZXP Liner Packer with 6' Tieback Extension @ 3,667' MD (Top) * Flex-Lock Liner Hanger @ 3701' MD (Top) * Marker Joint Top @7987' MD (20' long) * Marker Joint Top @7012' MD (20' long) KB: 21' AGL (171' KB Elev) API #: 50-133-20573-00-00 Permit #: 207-1640 Property Des: ADL - 384372 WBS #: DD.07.16241.CAP X= 206,414.356 (NAD27) Y= 2,230,614.114 (NAD27) Lat: 60º 05' 43.394" N Long: 151º 36' 38.544" W Spud: 06:30 hrs 01/18/2008 TD: 06:00 hrs 2/1/2008 Rig Released: 18:00 hrs 2/15/2008 TD: 8,436' MD 7,985' TVD Expro Radial Bond Log (2/19/08) Conductor 20" K-55 133 ppf PE Top Bottom MD 0' 114 TVD 0' 114' Surface Casing 10-3/4" J-55 45.5 ppf BTC Top Bottom MD 0' 1,617' TVD 0' 1,487' 13-1/2" hole with 457sks (202 bbls) 12 ppg Type 1 Cmt with 100% returns and 40 bbls Cmt to surface. Intermediate Casing 7-5/8" L-80 29.7 ppf BTC Top Bottom MD 0' 3,902' TVD 0' 3,453' 9-7/8" hole with 265sks (99 bbls) 12.0 ppg Type 1 Lead Cmt & 150sks (31 bbls) 15.8 ppg Class G Cmt Tail. Slight interface returns to surface. Production Liner 4-1/2" L-80 12.6 ppf Hydril 563 Top Bottom MD 3,685' 8,385' TVD 3,237' 7,934' 6-3/4" hole Cmt w/ 284 sks (210 bbls) 10.5 ppg Class G, 100% Returns. 25 bbls cmt returns. Tie-backTubing 4-1/2" L-80 12.6 ppf Hydril 563 Top Bottom MD 0' 3,667' TVD 0' 3,219' Chemical Injection Nipple @ 2,397' MD PBTD: 7,890' MD 7,439' TVD 36' of 3-3/8" HSC Perf guns Tagged @ 7,602' MD w/ 2.82" GR (1/19/10) Tagged @ 7,782' MD (12/22/08) Well Name & Number: Municipality: Perforations (MD): Angle @ KOP & Depth: Date Completed: Revised by: Paxton # 2 Kenai Peninsula Borough 4,302' -7,574' ~ 2.5º / 100 ft, 325' -1,300' 3/6/2008 Donna Ambruz Lease: State: Perf (TVD): Ninilchik Unit, ADL -384372 Country: Angle @ Perfs: Ground Level: Revision Date: Alaska USA 3,853' -7,123' ~ 1.5º RKB:150' (AMSL)21' (AGL) 06-09-20 4-1/2" CIBP @ 8,022' 4-1/2" CIBP @ 7,890' PROPOSED SCHEMATIC BEL 132 T7 BEL 136L BEL 136U BEL 135 BEL 134A BEL 134 Ninilchik Unit Paxton #2 06/11/2020 20'’ 10 ¾’’ 4.5'’ Starting head, Vetco MB-235, 11 5M X 10 ¾’’ VG-Loc bottom, w/ 2- 2'’ LPO Multibowl, Vetco MB-235, 11 5M stdd bottom X 11 5M FE top, w/ 2- 2 1/16 5M SSO, 1- control line exit Adapter, Vetco, 11 5M FE X 4 1/16 5M stdd top, prepped f/ 6.5'’ extended neck hanger Ninilchik Unit Paxton #2 20 X 10 3/4 X 7 5/8 X 4 ½ X 1.750 Valve, master, VG-M, 4 1/16 5M FE, HWO, DD trim 7 5/8'’ Tree cap, Otis, 4 1/16 5M FE X 6 ½ Otis Quick Union Valve, upper master, VG-M, 4 1/16 5M FE, HWO, DD trim Tee, stdd, 4 1/16 5M X 4 1/16 5M Valve, Swab, VG-M, 4 1/16 5M FE, HWO, DD trim Tubing hanger, MB-235, 11 X 4.909 MCA lift X 4 ½ IBT susp, w/ 4'’ Type H BPV profile, 2- ¼ continuous control lines 6.5'’ Extended neck 2 1/16 5M Wing section w/ Pneumatic SSV Coiled tubing hanger, VG- CTM, 4'’ nominal X 2 3/8 EUE susp X 3'’ GS Baker Fish Neck Lift, w/ 2'’ Type H BPV and grapple for 1.750'’ coil 1.750'’ Ninilchik Unit Paxton #2 06/11/2020 20'’ 10 ¾’’ 4.5'’ Starting head, Vetco MB-235, 11 5M X 10 ¾’’ VG-Loc bottom, w/ 2- 2'’ LPO Multibowl, Vetco MB-235, 11 5M stdd bottom X 11 5M FE top, w/ 2- 2 1/16 5M SSO, 1- control line exit Adapter, Vetco, 11 5M FE X 4 1/16 5M stdd top, prepped f/ 6.5'’ extended neck hanger Ninilchik Unit Paxton #2 20 X 10 3/4 X 7 5/8 X 4 ½ Valve, master, VG-M, 4 1/16 5M FE, HWO, DD trim 7 5/8'’ Tree cap, Otis, 4 1/16 5M FE X 6 ½ Otis Quick Union Valve, upper master, VG-M, 4 1/16 5M FE, HWO, DD trim Tee, stdd, 4 1/16 5M X 4 1/16 5M Valve, Swab, VG-M, 4 1/16 5M FE, HWO, DD trim Tubing hanger, MB-235, 11 X 4.909 MCA lift X 4 ½ IBT susp, w/ 4'’ Type H BPV profile, 2- ¼ continuous control lines 6.5'’ Extended neck 2 1/16 5M Wing section w/ Pneumatic SSV STANDARD WELL PROCEDURE NITROGEN OPERATIONS 12/08/2015 FINAL v1 Page 1 of 1 1.) MIRU Nitrogen Pumping Unit and Liquid Nitrogen Transport. 2.) Notify Pad Operator of upcoming Nitrogen operations. 3.) Perform Pre-Job Safety Meeting. Review Nitrogen vendor standard operating procedures and appropriate Safety Data Sheets (formerly MSDS). 4.) Document hazards and mitigation measures and confirm flow paths. Include review on asphyxiation caused by nitrogen displacing oxygen. Mitigation measures include appropriate routing of flowlines, adequate venting and atmospheric monitoring. 5.) Spot Pumping Unit and Transport. Confirm liquid N2 volumes in transport. 6.) Rig up lines from the Nitrogen Pumping Unit to the well and returns tank. Secure lines with whip checks. 7.) Place signs and placards warning of high pressure and nitrogen operations at areas where Nitrogen may accumulate or be released. 8.) Place pressure gauges downstream of liquid and nitrogen pumps to adequately measure tubing and casing pressures. 9.) Place pressure gauges upstream and downstream of any check valves. 10.) Wellsite Manager shall walk down valve alignments and ensure valve position is correct. 11.) Ensure portable 4-gas detection equipment is onsite, calibrated, and bump tested properly to detect LEL/H2S/CO2/O2 levels. Ensure Nitrogen vendor has a working and calibrated detector as well that measures O2 levels. 12.) Pressure test lines upstream of well to approved sundry pressure or MPSP (Maximum Potential Surface Pressure), whichever is higher. Test lines downstream of well (from well to returns tank) to 1,500 psi. Perform visual inspection for any leaks. 13.) Bleed off test pressure and prepare for pumping nitrogen. 14.) Pump nitrogen at desired rate, monitoring rate (SCFM) and pressure (PSI). All nitrogen returns are to be routed to the returns tank. 15.) When final nitrogen volume has been achieved, isolate well from Nitrogen Pumping Unit and bleed down lines between well and Nitrogen Pumping Unit. 16.) Once you have confirmed lines are bled down, no trapped pressure exists, and no nitrogen has accumulated begin rig down of lines from the Nitrogen Pumping Unit. 17.) Finalize job log and discuss operations with Wellsite Manager. Document any lessons learned and confirm final rates/pressure/volumes of the job and remaining nitrogen in the transport. 18.) RDMO Nitrogen Pumping Unit and Liquid Nitrogen Transport. • Marathon MaRniHON Alaska Prvductivn LLB Marmon Alaska Production LLC Alaska Asset Team P.O. Box 1949 Kenai, AK 99611 Telephone 907/283-1371 Fax 907/283-1350 R~~ElVED May 25, 2010 Mr. Winton Aubert Alaska Oil & Gas Conservation Commission 333 W 7th Ave Anchorage, Alaska 99501 MAY 2 7 2010 Alaska Oil ~ ass Ceps. Eorrmissron Ancher~ge ~~ Reference: 10-404 Report of Sundry Well Operations ~~ Field: Ninilchik Unit Well: Paxton # 2 .~': ~ . . Dear Mr. Aubert: Attached for your records is the10-404 Report of Sundry Well Operations for Pax-2 well. This report covers the work performed to install a velocity string to a setting depth of 7,535' MD. Please contact me at (907) 283-1371 if you have any questions or need additional information. Sincerely, • ~~i~ Kevin J. Skiba Regulatory Compliance Representative Enclosures: 10-404 Report of Sundry Well Operations cc: Houston Well File Well Schematic Kenai Well File Operations Summary KJS STATE OF ALASKA ALASKA AND GAS CONSERVATION COMMISSI~ REPORT OF SUNDRY WELL OPERATIONS bJ~h' os12 S~zoro 1. Operations Abandon Repair Well Plug Perforations Stimulate Other ~ Install V-String Performed: Alter Casing ^ Pull Tubing ^ Perforate New Pool ^ Waiver^ Time Extension ^ Change Approved Program ^ Operat. Shutdown ^ Perforate ^ Re-en er Suspended Well ^ 2. Operator 4. Well Class Before Work: Permit to Drill Number: Name: Marathon Alaska Production LLC Development 0 Exploratory^ 207-164 3. Address: PO Box 1949 Stratigraphic ^ Service ^ .API Number: Kenai Alaska, 99611-1949 50-133-20573-00-00 7. Property Designation (Lease Number): 8. Well Name and NumbeC: ADL - 384372 `Paxton #2 9. Field/Pool(s): Ninilchik Uni / Tyonek Undefined Gas D - i 11. Present Well Condition Summary: Total Depth measured 8,436' feet Plugs (measured) 7,$90' & 8,022' feet true vertical 7,g8$' feet Junk (measured) 7,7$2' feet Effective Depth measured 8,273' feet Packer (measured) 3,667' feet true vertical 7,822' feet (true vertical) 3,21 g' feet Casing Length Size MD TVD Burst Collapse Structural Conductor 93' 20" 114' 114' 3,060 psi 1,500 psi Surface 1,596' 10-3/4" 1,617' 1,487' 3,580 psi 2,090 psi Intermediate 3,881' 7-5/8" 3,902' 3,453' 6,890 psi 4,790 psi Production Liner 4,700' 4-1/2" 8,385' 7,934' 8,430 psi 7,500 psi Perforation depth: Measured depth: 4,302' - 7,574' True Vertical depth: 3,853' - 7,123' Tie-Back 4-1/2" L-80 3,667' MD 3,219' rvD Tubing (size, grade, MD &TVD): Velocity String 1-3/4" HO-70 7,535' MD 7,084' TVD SSSV: MD TVD Packers and SSSV (type, MD &TVD): Packers: ZXP Liner Packer 3,667' MD 3,219' TVD 11. Stimulation or cement squeeze summary: Intervals treated (measured): Installed a 1-314" velocity tubing string to a depth of 7,535' MD. Treatment descriptions including volumes used and final pressure: 12. Representative Daily Average Production or Injection Data Oil-Bbl Gas-Mcf Water-Bbl Casing Pressure Tubing Pressure Prior to well operation: 0 0 6.8 0 1,279 Subsequent to operation: 0 1,200 - 0 1,162 13. Attachments: .Well Class after work: Copies of Logs and Surveys Run Exploratory ^ Development Q Service ^ Daily Report of Well Operations X Well Status after work: Oil Gas ~ WDSPL GSTOR ^ WAG ^ GINJ^ WINJ ^ SPLUG ^ 16. 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: 310-029 Contact Kevin Skiba (907) 283-1371 Printed Name Kevin J. Skiba Title Regulatory Compliance Representative ~ ~ Phone (907) 283-1371 Date May 25, 2010 Signature s RBDMS MAY 2 T Form 10-404 Revised 7/2009 Submit Original Only -` ~ O~ations Summary Report by Job• ,~,~, ~Oi~C'nY Well Name: PAXTON 2 Qtr/Qtr, Block, Sec, Town, Range Field Name License No. State/Province Country Sec. 13 T1S R14W SM NINILCHIK - PAXTON ALASKA USA Daily Operations Report Date: 4/24/2010 Job Cate o R&M MAINTENANCE 24 Hr Summary Arrive location, bleed pressure from flowline, set backpressure valve below lower main valve on tree, bleed pressure from tree, split tree, insert tubing hanger and casing flowline, flange up tree, pressure test tree, rig down. ._.,_ _ - ----T-- Qps Trouble Start Time End Time Dur {hrs) Ops Code Activity Code , . Status Code. Comment -- 08:30 09:00 0.50 SAFETY MTG AF Arrive SD pad, sign in, received safe work permit, hold PJSM -topics discussed -slips, trips, falls, trapped pressure, simultaneous operations, hand placement, finger injuries, overhead loads, crane operation, manlift operations, active gas production pad, red lights for fire, blue lights for gas emission, sirens for audible, muster area is pad entrance, emergency phone numbers,emergency vehicle, buddy rule, three second rule, stop the job responsibility. Travel to Paxton pad to rig up 09:00 11:30 2.50 RURD PIPE AF Rig up Vetco-Gray and set back pressure valve below lower master valve. Wellhead pressure 1300#. Bleed off trapped pressure in tree, cycle valves in tree to verify BPV is holding. Proceed to split flowline flanges and split tree 11:30 14:00 2.50 NUND TREE AF Split tree between upper and lower master valves, split flowlines at flanges, insert velocity string hanger and casing SSV. Nipple up tree and prepare to pressure test. 14:00 16:30 2.50 TEST TREE AF Pressure test tree to 5000#, hold for 10 minutes. Test successful. Drain diesel fuel pressure test fluid. Pull back pressure valve. Rig down lubricator 16:30 16:45 0.25 SECURE WELL AF Secure wellhead for evening, turn in work permit at SD pad. Report Date: 5112/2010 Job Cate o R&M MAINTENANCE 24 Hr Summary Prepare to run velocity string. rig up BJ CoilTech, test BOP's -witness waived by Mr. Jim Regg with AOGCC, secure wellhead for evening Start Time End-Time l7ur (hrs) Ops Code Activity Gode Ops Status. Trouble Code Comment _ _ _ i 07:30 08:30 1.00 SAFETY MTG AF Arrive SD pad, sign in, travel to Paxton pad, receive safe work permit, hold PJSM - fopics discussed -slips, trips, falls, active gas production pad, red lights for fire, blue lights for gas emission, siren for audible, muster area, emergency vehicle -MAP red dodge, emergency fire exstinguishers, eye wash, review JSA's, assign jobs, crane safety, overhead loads, sand -soft footing, sunken areas around PAXTON 3, buddy rule, three second rule, stop the job and focusing on job. Compared testing the BOP's to blowout on BP offshore well because failure of their BOP to work and the importance for it to work on this well. 08:30 09:30 1.00 WAITON EOIP AF Wait for construction crew to install orifice plate and test flowline 09:30 12:30 3.00 RURD COIL AF Rig up coiled tubing unit with velocity string, nipple down tree cap flange, install flow cross and BOP's, install flow back iron from BJ CoilTech BOP's to flow back tank. Prepare to test BOP's. 12:30 15:00 2.50 TEST BOPE AF Pressure test flowline -4500# -test successful, function test BOP, test BOP per AOGCC guidelines. Witness waived by Mr. Jim Regg with AOGCC. BOP test successful. Pull test BHA adapter - 12000# -test successful. 15:00 15:30 0.50 SECURE WELL AF Secure wellhead, turn in safe work permit at SD pad, sign out and leave location Re ort Date: 5/13/2010 Job Cate o R8~M MAINTENANCE 24 Hr Summary Pig velocity string, blow string dry with N2 back to flowback tank, bleed off N2, install BHA consisting of grapple connector -8.25 inches in length with 2.65" OD, Straight bar - 10 feet with 2.52" OD, XN profile nipple - 8.7 inches, wireline re-entry guide -2.0 inches OD and centralizer - 3.5" OD -combined lenght of 12.75 inches. Aluminum pump -off plug is 1.75 inches in length (no threads). Shell test BOP (200 low/ 1500 high) -test good. RIH with V string to bridge depth of 7122 feet measured depth. Operators attempting to get well stabilized by pumping methanol. Well head pressure up to 1250 # and flow rate at 700M. Well originally was at 2MM this morning. Kill ice plug with methanol. Get V string down to 7565 ft. MD. Unable to move up or down. Work tool and pull out of hole I Ops Trouble Start Time End Time pur(hrs) Ops Code , ACtiv ity Code ! Status Code _ Comment ,. 07:30 08:30 1.00 SAFETY _ _ _ MTG AF Arrive SD pad, sign in, travel to Paxton pad, receive safe work permit, hold PJSM -Topics discussed -slips, trips, falls, active gas production pad, red lights for fire, blue lights for gas emission, siren for audible, muster area, emergency vehicle -Craig Rang, emergency fire exstinguishers, eye wash, review JSA's, assign jobs, crane safety, overhead loads, sand -soft footing, sunken areas around PAXTON 3, buddy rule, three second rule, stop the job and focusing on job. www.peloton.com Page 1/3 Report Printed: 5/21/2010 M ~ O~ations Summary Report by Job• x~aaanior ®Oi1COmpa1~/ Weil Name: PAXTON 2 Casing Flange Elevation (ft) Ground Elevation (ft) KB-Casing Flange Distance (ft) KB-Ground Distance (ft) Spud Date Rig Release Date - ~ Start Time '~ End Time - I -- Dur(hrs) l OpsCode ~i AcGvityCode Ops Status Trouble ' Cade Comment 08:30 12:00 3.50 RURD COIL AF - -- - - -- Pig velocity string, retrieve pig, blow string dry with N2, rig up BHA, shell test WH (200 low, 1500 High). 12:00 21:30 9.50 RUNPUL COIL AF RIH with velocity string. Set down on bridge at 7122 feet measured depth. Operators having trouble getting well stabilized. Originally well was making 2 MM this morning but has dropped prod. down to 700M with wellhead pressure at 1250 #. Appears to have ice block downstream. Operators attempting to install methanol injection. Electrical wire problem getting methanol pump operational. Ice plug removed at 3:45 pm. Pressure at wellhead dropped to 800#. Will stabilize flowrate to 3MM and attempt to get to landing point for V string. Velocity string got down to 7492. Work pipe - losing hole. Increase well rate to 4.3MM. Work Velocity string down to 7565 ft. MD. Pull up 30 feet -tension on pipe up to 30K. Pipe will not go back down. Continue to work pipe. Unable to go back down. Making headway uphole slowly. Decision to pull out of hole and secure wellhead for evening. POOH 21:30 22:15 0.75 RURD COIL AF Close swab valve below BHA. Bleed off pressure, Break off lubricator, remove BHA, reset lubricator on BOP, set back injector onto cradle, put night cap onto lubricator. 22:15 22:30 0.25 SECURE WELL AF secure wellhead for evening, turn in safe work permit to SD pad, leave location Daily Operations Re ort Date: 5/15/2010 Job Cate o R&M MAINTENANCE 24 Hr Summary Run V string into hole. Run into 7575' MD, pull up to 7518'MD, run back into hole to 7535' MD, Pull back up to 7518' MD. Prepare to set velocity string. cut string, attach connector, pull test connector, attach hanger, spear into V string, slide back into hole 17 feet. Set V string at 7535. Rig back CTU, pump out plug in V string with N2, shut in annulus and flow well through velocity string to flow back tank. Pressure on velocity string slowly building to 200# and making solids /fluid with gas. -- _ - ---- _ _- I. i Ops Trouble Start Time ! End Time I Dur (hrs) Ops Code Activity Cade Status Code , CommenF "' 07:30 08:30 1.00 SAFETY MTG AF Arrive SD pad, sign in, travel to Paxton pad, receive safe work permit, hot work permit for camera and hold PJSM -topics discussed -slips, trips, falls, active gas production pad, red lights for fire, blue lights for gas emission, siren for audible, muster area, emergency vehicle -Craig Rang, emergency fire exstinguishers, eye wash, review JSA's, assign jobs, crane safety, overhead loads, sand -soft footing, sunken areas around PAXTON 3, buddy rule, three second rule, stop the job and focusing on job. Recognized ASRC crane operator -Frank will be retiring after this job. Asked him to talk about his career and what was most important to be safe. Thanked him for his input and many years of safe service. 08:30 09:30 1.00 RURD COIL AF Rig up coiled tubing unit, pick up injector head to pick up lubricator on top of BOP stack, pick up BHA consisting of 2.5" OD wireline entry guide, length 8 inches, XN profile nipple, 2.5" OD and 8.5 inches long, 10 foot straight bar with 2.5" OD. Set injector head and lubricator back onto wellhead, pressure test and prepare to go into hole. 09:30 14:00 4.50 RUNPUL COIL AF Run V string into well to depth of 7575' MD. Pull up to 7518' MD. Slide back down to 7535', no issues, pull back up to 7518' MD. Prepare to cut tubing. Set slips, tubing rams. Bleed pressure off lubricator, break lubricator, slide injector up tubing as crane is lifting injector head, cut tubing, dress tubing head with non sparking hand file, install connector and hanger. Dress tubing head on spool side, attach connector and spear. Spear V string, walk injector head back down, attach lubricator, pull test lower connector- 25K -test successful, release tubing slips and tubing rams, walk tubing down into hanger, seat hanger, lock in tubing hanger, test hanger seals. Pump N2 down V string to blow out plug, bleed N2 from V string. 14:00 18:00 4.00 RURD COIL AF Rig down coil unit. Set injector back into cradle on truck. Rig down lubricator. Set night cap. 18:00 18:30 0.50 SECURE WELL AF Securing wellhead for evening. Flowing well through flowback line from velocity string through BJ flowcross. Securing operator to monitor well over the night. www.peloton.com Page 2/3 Report Printed: 5/21/2010 Mara~tttpn Orations Summary Report by Job• ,aaRaTxoN ~DIIC:c~rx~parry Well Name: PAXTON 2 Daily Operations Report Date: 5/16/2010 Job Cate o R&M MAINTENANCE 24 Hr Summary Ran 1.75 inch Velocity string into well, cleaned out well and turned back over to production - Ops Trouble - SteR Time I End Time i ~ Dur (hrs) i Ops Code Activity Cade Status Code Comment 09:30 10:00 0.50 SAFETY MTG AF Arrive SD pad, sign in, receive work permit, travel to Paxton Pad, hold PJSM -topics discussed -slips, trips, falls, active gas production pad, red lights for fire, blue lights for gas emission, sirens for audible, muster area, emergency vehicle -Craig Rang's company vehicle, emergency numbers on safe work permit, muster area(s), overhead loads, pinch points, stressed hand placement for safety, buddy rule, three second rule. Reviewed safety incident of simultaneous work crew on pad. One of their workers was walking a production pipe elevated 4 feet off ground and at least 4 coworkers watched and did not stop the job. I asked for our people's interpretation of that incident. Those workers had not boughten into our safety culture and were equally in the wrong as the person walking the pipline. (The crew supervisor will have a safety meeting on this issue Monday.) 10:00 13:30 3.50 RURD COIL AF rig down CTU, BOP's, flowlines, vac truck lines to prevent environmental spills, rig down gas buster from flow back tank, install night cap flange, re-install well house, turn well back over to production. 13:30 14:00 0.50 SECURE WELL AF secure wellhead, travel to SD pad, turn in work permit, sign out. www.peloton.com Page 3/3 Report Printed: 5/21/2010 zo7-lsao es: ADL - 384372 DD.07.16241.CAP 206,414.356 (NAD27) 2,230,614.114 (NAD27) 60° OS' 43.394" N 151° 36' 38.544" W 06:30 hrs 01118/2008 06:00 hrs 211/2008 ~ed: 18:00 hrs 2/1 512 0 0 8 KOP @ 325' MDITVD Builtl 4.0 deg/100' from 487-1362' MD Hold 38.35 deg from 1362-2668' MD Drop 3.0 deg/700'to 3918' MD Hold 0 deg from 3918' to TD at 8448' MD Paxton #2 Ninilchik Unit 746' FNL, 2,914' FEL Sec. 13, T1S, R14W, S.M. ~-1roM J1INILL 12.6#, L-80, Hydril 563 * Baker Chemical Injection Nipple @2.397' MD (Top) 5.750" OD/3.895" ID ` ZXP Liner Packer with 6' Tieback Extension @ 3,667' MD (Top) `Flex-Lock Liner Hanger @ 3701' MD (Top) `Marker Joint Top @7987' MD (20' long) ' Marker Joint Top @7012' MD (20' long) Velockv Strin° (Installed on 5115/10) / 1-314" HO-70 Top Bottom MD 0' 7,535' ND 0' 7,084' BHA: 10' Straight ear 2.5" OD 8.5" XN Profile Nipple 2.5" OD 8" WL Ent Guide 2.5" OD 36' of 3-318" HSC Perf suns Tagged @ 7,602' MD w/ 2.82" GR (1/19/10) Tagged @ 7,782' MD (12/22/08) 4-1 /2" CIBP 4-1/2" CIBP Expro Radial Bond Log (2/19/08) c c C c c C Formation Tops: TD: 8 436' MD pBTD: ' Formation Depth (MDl Depth (SSTVD) , 7,985' TVD 7,890 MD 7,439' TVD Beluga Tyonek TKT 3,946' 3,328 Tyonek T2 4,896' 4,278' Tyonek T3 6,048' 5,430' TD 8,448' 8,000' Conductor 20" K-55 133 ppf PE Tel Bottom MD 0' 114 ND 0' 114' Surtace Casino 10-314" J-55 45.5 ppf BTC Top Bottom Chemical Injection MD 0' 1,617' Nipple @ 2,397' MD ND 0' 1,487' 13.1/2" hole wkh 457sks (202 bbls) 12 ppg Type 1 Cmt with 100 h returns and 40 bbls Cmt to surface. Intermediate Casino 7-518" L-80 29.7 ppf B7C TOD Bottom MD 0' 3,902' ND 0' 3,453' 9.718" hole wkh 265sks (99 bbls) 12.0 ppg Type 1 Lead Cmt 81505ks (31 bbls)15.8 ppg Class G Cmt Tail. Slight interface returns to surface. Tie•backTubinc 4.112" L-80 12.6 ppf Hydril 563 Tom Bottom MD 0' 3,667' ND 0' 3,219' Production Liner 4112" L-80 12.6 ppf Hydril 563 TO~I Bottom MD 3,685' 8,385' ND 3,237' 7,934' 6-314" hole Cmt w/ 284 sks (210 bbls) 10.5 ppg Class G, 100 % Returns. 25 bbls cmt returns. Proposed Tvonek Perfs: MD TVD Ft Perf Date 4,090' - 4,101' 3,641' - 3,652' 11' 4,137' - 4,147' 3,688' - 3,698' 10' Tvonek Perfs: MD TVD Ft Perf Date 4,302' - 4,332' 3,853' - 3,883' 30' (12117/08) 4,574' - 4,604' 4,125' - 4,155' 30' (12117/08) 4,926' - 4,940' 4,476' - 4,491' 14' (9/26/08) 5,011' - 5,028' 4,562' - 4,579' 17' (9/26/08) 5,663' - 5,674' 5,214' - 5,225' 11' (9/25/08) 5,698' - 5,725' 5,249' - 5,276' 27' (9/25108) 5,848' - 5,863' 5,399' - 5,414' 15' (9/24108) 6,083' • 6,093' 5,634' - 5,644' 10' (9/4/08) 6,358' - 6,372' 5,908' - 5,922' 14' (9/3/08) 7,393' - 7,408' 6,942' - 6,957' 15' (817/08) 7,408' - 7,418' 6,942' - 6,967' 10' (5/8/08) 7,536' - 7,574' 7040' 7,949' 7,085' - 7,123' 7,489' - 7,498' 38' 8'- (5/2/08) -(°.~geo) X0:28 ~~,,,~-oo~~ '--wo'ecc•-',669' 2B' 14' (patched) fplugged) Well Name & Number: Paxton # 2 Lease: Ninilchik Unit, ADL - 384372 Municipality: Kenai Peninsula Borough State: Alaska Country: USA Perforations (MD): 4,302' - 7,574' Perf (TVD): 3,853' - 7,123' Angle @ KOP & Depth: - 2.5° / 100 ft, 325' - 1,300' Angle @Perfs: - 1.5° Date Completed: 3/6/2008 Ground Level: 150' (AMSL) RKB: 21' (AGL) Revised by: Kevin Skiba Revision Date: 5/25/2010 SEAN PARNELL, GOVERNOR lutt-~t-t7~~1A~ OIL A1QD r7fAS 333 W. 7th AVENUE, SUITE 100 CO~SERQAiiOts CO~~IISSIOI~ ANCHORAGE, ALASKA 99501-3539 PHONE (907) 279-1433 FAX (907) 276-7542 Kevin J. Skiba Regulatory Compliance Technician Marathon Alaska Production LLC P.O. Box 1949 Anchorage, Alaska 99611-1949 '~ Q~ ~ Re: Ninilchik Unit, Tyonek Undefined Gas, Paxton #2 Sundry Number: 310-029 h,~ ,~ Dear Mr. Skiba: `~ ~'~~' ~~ a Enclosed is the approved Application for Sundry Approval relating to the above referenced well. Please note the conditions of approval set out in the enclosed form. When providing notice for a representative of the Commission to witness any required test, contact the Commission's petroleum field inspector at (907) 659-3607 (pager). As provided in AS 31.05.080, within 20 days after written notice of this decision, or such further time as the Commission grants for good cause shown, a person affected by it may file with the Commission an application for rehearing. A request for rehearing is considered timely if it is received by 4:30 PM on the 23rd day following the date of this letter, or the next working day if the 23rd day falls on a holiday or weekend. A person may not appeal a Commission decision to Superior Court unless rehearing has been requested. DATED this ~ day of February, 2010 Encl, u Marathon AhfIRn1NON Alaska Production LLC Mar~hon Alaska Production LLC Alaska Asset Team P.O. Box 1949 Kenai, AK 99611 Telephone 907/283-1371 Fax 907/283-1350 ~tECEtVED January 27, 2010 Mr. Winton Aubert Alaska Oil & Gas Conservation Commission 333 W 7th Ave Anchorage, Alaska 99501 Reference: 10-403 Application for Sundry Approvals Field: Ninilchik Unit Well: Paxton #2 Dear Mr. Aubert: JAN 2 9 20~a Alaska Og & Gaa Ceps. Commission Anchorage Submitted for your approval is the10-403 Application for Sundry Approvals for PAX-2 well. Marathon proposes to install a 1-3/4" velocity string in PAX-2 to a target setting depth of 7,575' MD. The velocity string is intended to assist in fluid removal by lowering the unload rate. Please contact me at (907) 283-1371 if you have any questions or need additional information. Sincerely, Y ..F/U~~v Kevin J. Skiba Regulatory Compliance Technician Enclosures: 10-403 Application for Sundry Approvals cc: AOGCC Operations Program Houston Well File Well Schematic Kenai Well File KJS ~/10 ~, V ~ \~' l~ ~~ STATE OF ALASKA ALAS~IL AND GAS CONSERVATION COMMISSI APPLICATION FOR SUNDRY APPROVALS 20 AAC 25.280 ~" ~ ~ ~ ~~~~OL/Ol~jot0 1. Type of Request: Abandon ^ Plug for Redrill ^ Perforate New Pool ^ Repair well ^ han a prove program Suspend ^ Plug Perforations ^ Perforate ^ Pull Tubing ^ .Extension ^ Operational shutdown ^ Re-enter Susp. Well ^ Stimulate ^ Alter casing ^ Other: Install V-String ~ ^~ 2. Operator Name: Marathon Alaska PrOdUCtIOn LLC 4. Current Well Class: 5. Permit to Drill Number: Development Q Exploratory ^ 207-164 - 3. Address: p0 Box 1949 Stratigraphic ^ Service ^ 6. API Number: Kenai Alaska, 99611-1949 50-133-20573-00-00- 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: Q ^ Paxton #2 - Spacing Exception Required? Yes No 9. Property Designation (Lease Number): 10. Field/Pool(s): ADL - 384372 - Ninilchik Unit / Tyonek Undefined Gas 11. PRESENT WELL CONDITION SUMMARY Total Depth MD (ft): Total Depth ND (ft): Effective Depth MD (ft): Effective Depth ND (ft): Plugs (measured): Junk (measured): 8,436' - 7,985' 8,273' 7,822' 7,890' & 8,022' 7,782' Casing Length Size MD TVD Burst Collapse Structural Conductor 93' 20" 114' 114' 3,060 psi 1,500 psi Surface 1,596' 10-3/4" 1,617' 1,487' 3,580 psi 2,090 psi Intermediate 3,881' 7-5/8" 3,902' 3,453' 6,890 psi 4,790 psi Production Liner 4,700' 4-1/2" 8,385' 7,934' 8,430 psi 7,500 psi Perforation Depth MD (ft): Perforation Depth ND (ft): Tubing Size: Tubing Grade: Tubing MD (ft): 4,302' - 7,574' / 3,853' - 7,123' Tie-Back 4-1/2" L-80 3,667' Packers and SSSV Type: Packers and SSSV MD (ft) and TVD (ft): ZXP Liner Packer 3,667' MD ~ 3,219' TVD 12. Attachments: Description Summary of Proposal ^ 13. Well Class after proposed work: Detailed Operations Program^ BOP Sketch ^ Exploratory ^ Development ^ - Service ^ 14. Estimated Date for 15. Well Status after proposed work: February 15, 2010 / Commencing Operations: ~ _ Oil ^ Gas ^ WDSPL Plu ed ^ gg ^ 16. Verbal Approval: Date: WINJ ^ GINJ ^ WAG ^ Abandoned ^ Commission Representative: GSTOR ^ SPLUG ^ 17. I hereby certify that the foregoing is true and correct to the best of my knowledge. Contact Kevin Skiba (907) 283-1371 Printed Name Kevin J. Skiba Title Regulatory Compliance Technician Signature ~ ° (907) 283-1371 Date January 27, 2010 ~ V ~ COMMISSION USE ONLY N b S d / aft ~! O ~ ~v un um er: ry Conditions of approval: Notify Commission so that a representative may witness Plug Integrity ^ BOP Test ~ Mechanical Integrity Test ^ Location Clearance ^ Other: Subsequent Form Required: _ APPROVED BY COMMISSIONER THE COMMISSION ~ ~~'/~ Date: Approved by: `~ ~ I G I f~L RecMS ~e u2 ~,u ~,-, Form 10-403 Revised 12/2009 Submit in Duplicate M MARATHON MARATHON ALASKA PRODUCTION LLC ALASKA ASSET TEAM Paxton #2 Ninilchik Unit Paxton Pad Coiled Tubing Velocity String Hangoff Procedure WBS # W0.10.21791.CAP.001 APPROVALS: ~acines S~t~coot 1/8/70 Program Writer /IV~i J1Vluee+xt ~3~ a~n/~U Mickey Mullin ~. C. ~6ele. Ol/1 S/l0 Lyndon Ibele Latest Version Date: 1/8/2010 Well Status: The well was producing 5.0 MMSCFD at 650 psi with around 8 BWPD. History: 2/19/08 CBL-Expro 2/27/08 Drill excess cement w/ CT 5/2/08 Set 4.5" CIBP @ 7890' 12/17/08 Lost 36' of 3 3/8" HSC pert guns in rathole, tag fish @ 7782' 12/22/08 Attempt to retrieve fish- unsuccessful 4/15/09 PT-Expro FL-7565' Tag-7708' BHP-1032psi Objectives: Install a CT v-string at bottom perforation to prolong well life by lowering unload rate. Also, will by useful to field operators by eliminating ~ blowdowns, soap stick dropping, and provide greater flexibility in future compression options. Resources: Slickline for gauge ring Coiled tubing set up with pump and N2 pump Arctic Iron choke, gas buster, tank set up. McOH Tank Manlift / 2 Light plants / 2 heaters Vetco Crew Coiled Tubing Velocity String Hangoff Procedure 1 /8/2010 -1- Procedure: Install Coiled Tubing Head. Talk to construction and make arrangements to complete instrumentation, electrical, logic, and FCO to minimize shut-in time. Vetco to set 4" Cameron Type-H BPV. Close bottom master. Bleed off pressure and check for flow. Remove top master and install new Vetco 4- 1/16 5M CT Head with 2-1/16" 5M side outlet. Install 2-1/16" gate valve and SSV to side outlet on coil tubing head. Reinstall and test (with diesel) top master and swab valve. Make final measurements to install flowline to CT Head outlet. Pull BPV. 2. Flowline modifications for coil tubing string. Hand over well to construction to modify flowline and install v-string flowline and choke if called for. 3. MIRU MOC flow back equipment including open-top flowback tank, choke skid, gas buster, and flow back iron. Spot flowback tank close enough to run CT into tank for pigging. MIRU closed-top 500 bbl Rain-for-Rent fluid supply tank. Lay liner and berm area around tank. Load fluid supply tank with 6% KCI and heat as necessary. Deliver diesel fuel manlift and two light plants. Remove well house and lock out electrical connections. 4. Drift well for v-string MIRU Pollard wireline and RIH w/ 3.5" OD min GR and tag fill. RD Pollard. Installation of CT 5. MIRU BJ coiled tubing unit. Verify 24 hour notification has been made to AOGCC for BOP test. Rig up fluid and N2 pumps. RU pumping iron (BJ) and flow back iron (MOC). If 4-1/2" completion, RU equalizing hose from BOP to top of lubricator. 6. Pig CT. Run end of CT with pig catcher made up into flowback tank. Pump 5 Bbls water, cleaning pig, and coil displacement +10% behind pig. 7. Nipple up BJ CT wellhead assembly (WHA). Current WHA is 4-1/16" 5M swab/cap. WHA to include 4-1/16" - 5M X 4-1/16" - 10M DSA, 4-1/16" - 10M X 5' Flanged Riser, 4-1/16" - 10M flow cross and 4-1/16" - 10M Dual-Combi BOP (dressed for 1-3/4" CT). Function test BOP. Stab 1-3/4" CT into injector. Install BJ coil tubing connector and pull test to 15,000 lbs. Nipple up injector to WHA. Coiled Tubing Velocity String Hangoff Procedure -2- 1 /8/2010 • • 8. Perform complete BOP test and complete AOGCC BOP test report (Correct Form Dated 08/03/2009). Pressure test pump iron (200 low/4500 high psi). Pump fluid to load CT. Pressure test CT, WHA and flow back iron to choke manifold (200/4500 psi). Pressure test BOP rams (200/4500 psi). Purge pressure test fluids w/ N2 to flowback tank and vent N2 pressure to flowback tank. 9. MU CT BHA. Nipple injector off WHA. PU 10' of 4-1/16" CQ lubricator. MU velocity string BHA to end of CT. BHA to include: a. 2.50" OD X 1.50" ID CT grapple connector, b. 2.50" OD X 1.50" ID X 10' long box x box straight bar, c. 1.91" OD X 1.25" PXN (1.135" no-go) pin x pin profile nipple. d. 3.50" OD x 2.50" OD (1.50" ID top box x 2.0" ID bottom) wireline re-entry guide with 2.0 OD" x 3.50" OD O-ring sealed aluminum pump-off plug. Strap and record velocity string BHA dimensions and lengths. 10. Nipple up infector to WHA. Pressure test WHA using CT kill line (200/1500 psi). Bleed WHP to flow back tank. Prior to next Step, ensure that flowback line from WHA through choke manifold to gas buster is ready and available to keep TP at or below 1500 psi while RIH to eliminate possible CT collapse. This would serve as a backup if flow through the production flow line was unexpectedly curtailed or ceased. 11. RIH with coil tubing velocity string and BHA with well flowing to sales up annulus (running v-strings into shut in wells has been very unsuccessful). 12. Cut coil tubing. POH to span WHA for final landing depth, 7575' (none: review results of pre-job PLT to cx~nfirm proper setting depth}. Set CT in BOP tubing/slip rams. Lock tubing/slip rams. Slack off injector chain traction and roll chains to verify slips are set. Release WHP above tubing rams to the flowback tank. Nipple injector off of WHA. Walk injector up CT. Install C plate above BOP and polish rod clamp on CT. Cut CT above BOP high enough to allow Vetco to install CT connector and hanger mandrel assembly. 13. MU Vetco Coil Tubing Hanger and Weatherford Hydraulic Release GS Running Tool. GS running tool should be plugged to release on pressure, not rate. Swing Injector and lubricator away from WH. Vetco to connect VGCT Coil Tubing Hanger (4" Nom C/W 3" Weatherford Fishneck with 2-3/8" 8rd Box and 2" BPV) to hanging coil tubing with coil grapple. While Vetco is making up CT hanger, BJ CoilTech to connect Weatherford GS toot string assembly to coil on reel trailer. Dimple-on a 1-3/4" CT connector. Pull test CT connector (25,000 lbs.) using 1.125" 10SA box X 1- 1/2" MT pin crossover and 1-1/2" MT box pull plate. Tool string will consist of 1-3/4" slimline dimple-on, 1-3/4" DF check valve, 1.125' 10SA box X 1-1/2" Coiled Tubing Velocity String Hangoff Procedure 1 /8/2010 -3- • MT pin X-over and a plugged 3" GS spear. PU or lay down 4" lubricator as needed to cover GS tool string and Vetco CT hanger. 14. Latch GS spear to Vetco mandrel after PU injector. Remove polish rod clamp and C-plate from top of BOP. Accurately measure from hanger assembly to CT lock down screws. Walk injector down CT and nipple injector/lubricator to top of BOP. Pull test CT mandrel connection/GS spear assembly to CT string weight plus 5,000 lbs. Slack off weight to CT string weight. Measure and mark the exact distance that the CT has to move down to align the hanger. Make all measurements on the gooseneck with all rollers locked. Equalize WHP across tubing rams. Unlock tubing/slip rams. Open BOP tubing/slip rams. 15. RIH and land Vetco CT hanger per Vetco procedures. (Stop hanger 1' high and run lower lockdown screws to their landing position. Lower hanger onto the lockdown screws and then lock upper screws. Verify string and hanger are landed and secured per Vetco procedures. Slack off string weight to neutral. Tighten Lock Screws. Pressure test hanger between O-rings to 5000 psig with hand pump pressure test unit (Vetco Supplied). Tighten Lock Screws. 16. Release GS Running Tool. Start pumping 6% KCL water or N2 to pressure up CT to release GS spear. Set down weight and then pick GS off of hanger 17. RD and release CT. 18. Blow aluminum pump-off plug off the end of the CT WL re-entry guide. Shut in sales and allow WHP pressure to build up to 1100 psi. Jumper gas from annulus to coil tubing until CT WHP is 1100. psi. While leaving CT shut in, open annulus to sales. The differential pressure between the coil tubing and annulus should blow off the pump out plug. If the situation dictates, pump off plug with n2. 19. FLOW TEST WELL TO SALES. No more than a 60%drawdown with methane gas in wellbore is permitted for the lowest open interval. Obtain stabilized flow within the 60%drawdown limit. The unloading rate up 4-1/2" casing and 1.75" coil tubing in a vertical well is 4.0 MMCFPD and 638 MCFPD, respectively, at 800 psig FCP. Flow well to sales observing recommended drawdown rates. Coiled Tubing Velocity String Hangoff Procedure 1 /8/2010 -4- i • WBD LINK Considerations, Instructions, and Planning: A pre-meeting with the construction group is required. Talk to construction and make arrangements to complete instrumentation, electrical, logic, and FCO to minimize shut-in time. V-string candidates don't normally like shut-ins, and having a "Rush" job adds considerably to the cost of the tree work. A hot work permit is necessary for grinding the top of the CT above the BOP to allow installation of the hanger assy. This permit requires special approval and must be obtained before the job. Pigging the coil is a good practice generally and required if we are running used pipe from BJ. If you pig the CT stabbed onto the well you will fill the tree with rust and create problems. Make sure that everyone plans to pig directly into the tank to keep the debris away from the tree. The critical point in the job is spacing out to hang off the CT. If the space out and procedure is not correct the CT or hanger can easily be damaged causing significant extra time and money. Organize a job meeting before the injector is walked back down to the BOP to ensure everything is measured and correct. There are 2 kinds of CT hangers in the field. The new style hanger has seals that are energized by the lockdown screws. The old style hanger has o-rings and is a larger OD. If an old style hanger is pulled from the well it should be discarded and replaced with the new style. A third hanger is in final design as of Sept-09. This design has shear screws to stop from prematurely energizing the seal while running through the lubricator or tree. It is necessary to use straight bars to align the hanger and GS. Use a 6' straight bar between the CT connector and the hanger and above the GS spear use 2 large centralizers separated with a 2' - 3' straight bar. If running a 4" hanger in 4-1/16" lubricator (or 3" in 3-1/8") it is necessary to install a pump in sub at the top of the lubricator and connect a hose from the top pump- in sub to the BOP to equalize around the hanger. Differential across the hanger can energize the seals and then they will be damaged running the hanger through the lubricator. Vetco is redesigning the 4" hanger to severely reduce this possibility (in final design stage in Sept09). It is safer to latch the hanger with the GS after the lubricator is reconnected to avoid walking the injector down the pipe. Either method works but with the straight bar below the hanger and the double centralizers above the GS it is easy Coiled Tubing Velocity String Hangoff Procedure 1/8/2010 -5- to latch inside the lubricator. When running the 3" hanger latching the GS inside the lubricator is not an option unless you have 3-1/8" lubricator and an equalizing system.. Coiled Tubing Velocity String Hangoff Procedure 1 /8/2010 -6- 50.133-20573.00.00 207.1640 Des: ADL - 384372 DD.07.16241.CAP 206,414.356 (NAD27) 2,230,614.114 (NAD27) 60° OS' 43.394" N 151°36'38.544" W 06:30 hrs 01/18/2008 06:00 hrs 2/1/2008 iced: 18:00 hrs 2/15/2008 KOP @ 325' MD/TVD Build 4.0 deg/100' from 487-1362' MD Hold 38.35 deg from 1362.2668' MD Drop 3.0 deg/100'to 3918' MD Hold 0 deg from 3918' to TO at 8448' MD Paxton #2 Ninilchik Unit 746' FNL, 2,914' FEL Sec. 13, T1S, R14W, S.M. String - 4.5", 12.6#, L-80, Hydril 563 Baker Chemical Injection Nipple @2,397' MD (Top) 5.750" OD/3.895" ID ZXP Liner Packer with 6' Tieback Extension @ 3,667' MD (Top) Flex-Lock Liner Hanger @ 3701' MD (Top) Marker Joint Top @7987' MD (20' long) Marker Joint Top @7012' MD (20' Tong) Expro Radial Bond Log - 02/19/08 Tagged @ 7,602' MD with 2.82" GR on 1/19/10 ~ 36' of 3-3/8" HSC Perf guns. Tagged @ 7,782' KB (12/22/08) 4-112" CIBP @ 7,890' 4-1/2" CIBP @ 8,022' M M~w-1woM L Conductor 20" K-55 133 ppf PE T~ Bottom MD 0' 114 Chemical Injection ND 0' 114' Nipple @ 2,397' MD Surface Casino 10-314" J-55 45.5 ppf BTC Tel Bottom MD 0' 1,617' ND 0' 1,487' 13-1/2" hole with 457sks (202 bbls) 12 ppg Type 1 Cmt with 100% returns and 40 bbls Cmt to surface. Intermediate Casino 7-5/B" L-80 29.7 ppf BTC TOE Bottom MD 0' 3,902' ND 0' 3,453' 9-7/8" hole whh 265sks (99 bbls) 12.0 ppg Type 1 Lead Cmt 8 1505ks (31 bbls)15.8 ppg Class G Cmt Tail. Slight interface returns to surface. Tie-backTubina 4.112" L-80 12.6 ppf Hydril 563 TO~1 Bottom MD 0' 3,667' ND 0' 3,219' Production Liner 4-112" L•80 12.6 ppf Hydril 563 Too Bottom MD 3,685' 8,385' ND 3,237' 7,934' 6-3/4" hole Cmt w/ 284 sks (210 bbls) 10.5 ppg Class G, 100 % Returns. 25 bbls cmt returns. Formation Tops: ~ _ s Formation Depth (MDl Depth (SSTVD) ~ ,r - Beluga Tyonek TKT Tyonek T2 3,946' 4,896' 3,328 4,278' TD: 8,436' MD PBTD: 7,890' MD Tyonek T3 6,048' 5,430' 7,985' TVD 7,439' TVD TD 8,448' 8,000' MD TVD Ft Perf Date 4,090' - 4,101' 3,641' - 3,652' 11' 4,137' - 4,147' 3,688' - 3,698' 10' MD TVD Ft Perf Date 4,302' - 4,332' 3,853' - 3,883' 30' (12/17/08) 4,574' - 4,604' 4,125' - 4,155' 30' (12/17/08) 4,926' - 4,940' 4,476' - 4,491' 14' (9/26108) 5,011' - 5,028' 4,562' - 4,579' 17' (9/26108) 5,663' - 5,674' 5,214' - 5,225' 11' (9/25108) 5,698' - 5,725' 5,249' - 5,276' 27' (9/25/08) 5,848' - 5,863' 5,399' - 5,414' 15' (9/24/08) 6,083' - 6,093' 5,634' - 5,644' 10' (9/4/08) 6,358' - 6,372' 5,908' - 5,922' 14' (9/3/08) 7,393' - 7,408' 6,942' - 6,957' 15' (517/08) 7,408' - 7,418' 6,942' - 6,967' 10' (5/8/08) 7,536' - 7,574' 7,085' - 7,123' 38' (512108) 7,899' 7,9'6' 7;148' - 7,475' 27-(°:oggeo) Well Name & Number: Paxton #2 Lease: Ninilchik Unit, ADL - 384372 County or Parish: Kenai Peninsula Borough State: Alaska Country: USA Angle @KOP and Depth: - 2.5° / 100 ft, 325' -1,300' Angle/Perfs: ' 1.5° KOP (ND): 325' Date Completed: 31612008 Ground Level (above MSL): 150' RKB (above GL): 21' Revised by: Kevin Skiba Last Revision Date: 01/27110 ~ c J ~ C a c ~ C a c C ~ c ~ c DATA SUBMITTAL COMPLIANCE REPORT 1/27/2010 Permit to Drill 2071640 Well Name/No. NINILCHIK UNIT PAXTON 2 Operator MARATHON OIL CO API No. 50-133-20573-00-00 MD 8436 TVD 7985 Completion Date 3/8/2008 Completion Status 1-GAS Current Status 1-GAS UIC N REQUIRED INFORMATION Mud Log Yes Samples No Directional Survey Yes DATA INFORMATION Types Electric or Other Logs Run: Quad Combo, CBL, RFT (data taken from Logs Portion of Master WeII Data Maint Well Log Information: • Log/ Electr Data Digital Dataset Log Log Run Interval OH / Tvpe Med/Frmt Number Name Scale Media No Start Stop CH Received Comments Rpt Report: Final Well R Log Mud Log 2 Col Log Mud Log 2 Col Log Mud Log 2 Col Log Mud Log 2 Col Log Induction/Resistivity 2 Blu Log Induction/Resistivity 2 BIu Log Induction/Resistivity 2 Blu Log Density 2 Blu Log Induction/Resistivity 2 Blu Log Sonic 2 Blu 0 0 Open 6/16/2008 End of Well Report, Table of Contencts, Mudlogging Equip, Well Details, Geo Data, Drilling Data, Daily Reports, Formation Logs 135 8436 Open 6/16/2008 MD Formation Log 135 8436 Open 6/16/2008 TVD Formation Log 135 8436 Open 6/16/2008 MD Drilling Dynamics 135 8436 Open 6/16/2008 TVDD Drilling Dynamics 3901 8284 Open 6/16/2008 MD Array Induction Shallow Focus 3-Feb-2008 3901 8284 Open 6/16/2008 TVD Array Induction Shallow 3-Feb-2008 3901 8284 Open 6/16/2008 MD Array Induction Vector Processed s 3-Feb-2008 3901 8240 Open 6/16/2008 MD Photo Density Dual Spaced Neturon 3-Feb- 2008 3901 8284 Open 6/16/2008 MD Compact Quad Combo 3-Feb-2008 3901 8284 Open 6116!2008 MD Comp Sonic 3-Feb- 2008 DATA SUBMITTAL COMPLIANCE REPORT 1/27/2010 Permit to Drill 2071640 Well Name/No. NINILCHIK UNIT PAXTON 2 Operator MARATHON OIL CO API No. 50-133-20573-00-00 MD 8436 TVD 7985 Completion Date 3/8/2008 Completion Status 1-GAS Current Status 1-GAS UIC N Log Cement Evaluation 2 Blu 3600 8091 Case 6/16/2008 Dual Radila Cement Bond, GR, CCL 19-Feb-2008 ED C Las 16463 Induction/Resistivity 1400 8291 Open 6/16/2008 Induction Res, Sonic, Amp, CCL, CBL, Temp, GR, Dir Survey Well Cores/Samples Information: Name Sample Interval Set Start Stop Sent Received Number Comments ADDITIONAL INFORMATION Well Cored? Y / I~ Daily History Received? ® N Chips Received? .Y-L~+I~ Formation Tops ~ N Analysis -Y~N- Received? Comments: Compliance Reviewed By: Date: ~~~ u ~, ~ fL., J M Marathon MARATHON Oil Company January 20, 2009 ~~~° ~` J AN ~ ~ ~00~ Cons. Commission. p~iaska Oil & Gas Anchorage Mr. Tom Maunder Alaska Oil & Gas Conservation Commission 333 W 7th Ave Anchorage, Alaska 99501 Reference: 10-404 Report of Sundry Well Operations Field: Ninilchik Unit Well: Paxton #2 Dear Mr. Maunder: Marathon Oil Company Alaska Asset Team P.O. Box 1949 Kenai, AK 99611 Telephone 907/283-1371 Fax 907/283-1350 ~cCE~~,E~ JAN 2 2 2009 Alaska Oii & Gas Cons4 Commission Anchorage Attached for your records is the Report of Sundry Well Operations, 10-404, for PAX-2 well. This sundry covers the work performed to add sixty feet of perforations to the Tyonek formation which was completed under Sundry #308-424. The additional perforations increased gas production by 37%, to 5,050 mcf at 835 psi. Please contact me at (907) 283 -1371 if you have any questions or need additional information. Sincerely, --~Uz/`~ Kevin J. Skiba Engineering Technician Enclosures: 10-404 Report of Sundry Well Operations cc: Houston Well File Operations Summary Kenai Well File Current Well Schematic KJS JKM STATE OF ALASKA ~ ~ALAS~OIL AND GAS CONSERVATION COMMIS`~iON lI ~ REPORT OF SUNDRY WELL OPERATIONS V /-- ~ZECEIVED JAN 2 2 2009 1. Operations Abandon Repair Well Plug Perforations Stimulate Other Performed: Alter Casing ^ Pull Tubing ^ Perforate New Pool ^ Waiver^ Time E~ ~~ & Gas CQnS. Coat Change Approved Program ^ Operat. Shutdown ^ Perforate Q . Re-enter Suspended Well ^ ~OCc~ ~ 2. Operator Marathon Oil Company N 4. Well Class Before Work: 5. Permit to Drill Number: ame: Development ^~ ~ Exploratory^ 207-164 3. Address: p0 Box 1949 Stratigraphic ^ Service ^ 6. API Number: Kenai Alaska, 99611-1949 50-133-20573-00-00 ' 7. KB Elevation (ft): 9. Well Name and Number: 171' 21' AGL) Paxton #2 8. Property Designation: 10. Field/Pool(s): ADL - 384372 Ninilchik Unit /Tyonek Undefined Gas 11. Present Well Condition Summary: Total Depth measured 8,436'' feet Plugs (measured) 7,890' & 8,022' true vertical 7,885' - feet Junk (measured) 7,782' Effective Depth measured $,273' feet true vertical 7,822' feet Casing Length Size MD TVD Burst Collapse Structural Conductor 93' 20" 114' 114' 3,060 psi 1,500 psi Surface 1,596' 10-3/4" 1,617' 1,487' 3,580 psi 2,090 psi Intermediate 3,881' 7-5/8" 3,902' 3,453' 6,890 psi 4,790 psi Production Liner 4,700' 4-1/2" 8,385' 7,934' 8,430 psi 7,500 psi Perforation depth: Measured depth: 4,302' - 8,120' True Vertical depth: 3,853' - 7,669' Tubing: (size, grade, and MD) 4-1/2" L-80 3,667' Packers and SSSV (type and measured depth) 2.XP Liner Packer 3,667' 12. Stimulation or cement squeeze summary: Intervals treated (measured): 30' of perforations were added to the Tyonek formation in two perforation intervals. (4,302' - 4,332' MD) & (4,574' - 4,604' MD) Treatment descriptions including volumes used and final pressure: 13. Representative Daily Average Production or Injection Data Oil-Bbl Gas-Mcf Water-Bbl Casing Pressure Tubing Pressure Prior to well operation: 0 3,150 1.5 0 785 Subsequent to operation: 0 5,050 10 0 835 14. Attachments: 15. Well Class after work: Copies of Logs and Surveys Run Exploratory ^ Development ~' Service ^ Daily Report of Well Operations X 16. Well Status after work: Oil ^ Gas ^~ ~ WAG ^ GINJ ^ WINJ ^ WDSPL ^ 17. I hereby certify that the foregoing is true and correct to the best of my knowledge. Sundry Number or N/A if C.O. Exempt: 308-424 Contact Kevin Skiba (907) 283-1371 Printed Name Kyle Miranda ~, Title Production Engineer Signature - T , , Phone (907) 283-1370 Date November 19, 2008 ~ ~ issior e Form 10-404 Revised 04/2006 i~~ Submit Original Only _^ ~~~~ f3perations Summary Report ~~ ~~~~ ~~~ Well Name: PAXT~N 2 Report Date: 12M8J2008 Job Category: R&M MAINTENANCE 2a H r Simmary MIRU Expra to perforate two zones. Perforate 30' wI 3-318" Owen HSD 6 SPF, 60 degree phased SDP-3125-311 NT4 charges from 4574'- 4604' (OH) and 30' from 4302'- 4332' (OH). SgRThle End Tlne Der 0 COtl¢ fVG11l COtla Ops StaDra Tro~bk COGe a9mmQYt 09:00 09:45 0.75 SAFETY MTG AF Obtain safe Work Permit. Hold PJSM. Discuss Expro JSA. Discuss alarms, muster area, emergency repanse. Discuss specific job tasks and overall objective for tadays job. 09:45 10:09 0.40 PREP LOC AF Electrician LOTO breakers and disconnect paver from well house. PU WH off WN. 10:09 11:45 1 .60 RURD ELEC AF PU lubricator. MU taolstrin w! Gamma Ra lCCL. 11:45 12:06 0.35 SAFETY MTG AF Hold Explosives Safety Meeting. Shut down all radios, generators and cell phones. Check for stray voltage on WH. Post signage and guard at gate to location. 12:06 12:51 0.75 RURD ELEC AF Test lubricator to Arm guns. PU 30' of 3-3P8"" Owen hallow carrier guns. P _ 2000 si. Test good. 12:51 13:27 0.60 RUNPUL ELEC AF RIH wt 30' of 3-3~"" OD Owen hollow carrier perforating guns loaded 6 spf, 60 degree phased w/SDP-3125-311 NT3 charges and P?C-1 firing head. Well flowi scf 785 si. 13:27 13:39 0.2D RUNPUL ELEC AF we in 3:25 785 psi. un correlation pass from 4000'. I}fP packer 3602'- 3808' 13:39 13:51 0.20 LOG CSG AF Pull up into position 4567' CCL depth (4' CCL to tap shot). 13:51 13:57 0.10 PERF CSG AF P 1060 psi_Shoat guns 4571' - 4601' (CH) ~ 4574'- 4604' f OH7; 30' of 3-3l8" OD Owen hollow carrier perforating guns loaded 6 spf, 60 degree phased wl SDP-3125-311 NT4 charges and P}C-1 firing eFr a~cT~uild up should be available on SKADA. Fired guns ~ 13:50 pm. Lost 300# of wei ht. 1100# over ull to ull free. 13:57 14:15 0.30 RUNPUL ELEC AF POOH. 13:25 785 psi. Shut well in. 13:55 1060 psi. Shoat guns. 14:00 1150 psi. 14:10 1210 psi. 14:15 1225 psi. 14:25 0 en well to flaw. 14:15 14:24 0.15 RUNPUL ELEC AF P 1225. Begin flowing well @14:20 pm. 14:24 14:36 0.20 RURD ELEC AF u nc or an spent guns. All guns fired. Guns wet. 14:36 14:42 0.10 SAFETY MTG AF Hold Explosives Safety Meeting. Shut down all radial, generators and cell phones. Check for stray voltage on WH. Past signage and guard at gate to location. 14:42 14:54 020 RURD ELEC AF Arm guns. PU 30' of 3-3r8" Owen hollow carrier uns. PTest lubricator to 2000 si. Test ood. 14:54 15:21 0.45 RUNPUL ELEC AF RIH w130' of 3-3~" OD Owen hollow carrier perforating guns loaded 6 spf, 60 degree phased w/SDP-3125-311 NT4 charges and PH-1 firing head. 15:21 15:33 0.21 LOG CSG AF Run correlation pass at Z}{P Packer. Shut well in 15:25. 15:33 16:03 0.50 RUNPUL ELEC AF Pull up into position. CCL depth 4294' (CCL to top shat 4'). WNP 1000 psi. Shoat uns 4298' - 4328' (CH) ~ 4302'- 4332' (OH). 30' of 3-3~" OD Owen hollow carrier perforating guns loaded 6 spf, 60 degree phased w! SDP-3125-311 NT4 charges and PX-1 firing head. Build up should be available on SKADA. Fired guns ~ 15:38 pm. Goad indication of fire Gun pulled tight, pulled out of rope socket. POOH. Open well to flaw, (to reduce chance of bein blown out of hole . 16:03 16:51 0.80 RURD ELEC AF OOH. RD E lin 16:51 17:06 0.25 SECURE LL AF Secure well head and loc. Turn in permit. Call operator to talk about plan forward. Sign out www.peloton.com Report Prirrted: 1f20C1009 50-133-20573-00-00 # : 207-1640 Des: ADL - 384372 DD.07.16241.CAP 206,414.356 (NAD27) 2,230,614.114 (NAD27) 60 OS' 43.394" N 151 36'38.544" W 06:30 hrs 01/18/2008 06:00 hrs 211/2008 KOP @ 325' MDRVD Build 4.0 deg1100' from 487.1362' MD Hold 38.35 deg from 1362-2668' MD Drop 3.0 deg1100' to 3918' MD Hold 0 deg from 3918' to TD at 8448' MD Paxton #2 Ninilchik Unit 746' FNL, 2914' FEL Sec. 13, T1S, R14W, S.M. C~ M MARAT110N Conductor 20" K-55 133 ppf PE ?~ Bottom MD 0' 114 Chemical Injection ND 0' 114' - Nipple @ 2,397' MD Surface Casing 10-314" J-55 45.5 ppf BTC Toter Bottom MD 0' 1,617' TVD 0' 1,487' 13.112" hole with 457sks (202 bbls) 12 ppg Type 1 Cmt with 100% returns and 40 bhls Cmt to surface. Intermediate Casing 7.518" L-80 29.7 ppf BTC Toc Bottom MD 0' 3,902' ND 0' 3,453' 9.718" hole with 265sks (99 bbis) 12.0 ppg Type 1 Lead cmt 8 150sks (31 bbis) 15.8 ppg Class G Cmt Tail. Slight interface returns to surface. Tie-backTubing 4112" L-80 12.6 ppf Hydril 563 Tqp Bottom MD 0' 3,667' ND 0' 3,218' Production Liner 4.1/2" L•80 12.6 ppf Hydril 563 Tom Bottom MD 3,685' 8,385' ND 3,237' 7,934' 6-3/4" hole Cmt w/284 sks (210 bbls)10.5 ppg Class G, 100 % Returns. 25 bbis cmt returns. J' String-4.5", 12.6#, L-80, Hydri1563 String - 4.5", 12.6#, L-80, Hydril 563 Chemical Injection Nipple @2,397' MD (Top) 5.750" OD/3.895" ID Liner Packer with 6' Tieback Extension @ 3,667' MD (Top) Flex-Lock Liner Hanger @ 3701' MD (Top) Marker Joint Top @7987' MD (20' long) Marker Joint Top @7012' MD (20' long) a c ~ c 7 ~ c 36' of 3-3/8" HSC Perf guns. Tagged @ a c 7,782' KB (12/22/08) ~ ~ a c 4-1/2"CIBP @ 7,890' C 4-1@"CIBP @ 8,022' ~;~^ c Expro Radial Bond Log - 021192008 ~ c -: Beluga TyonekTKT Tyonek T2 Tyonek T3 TD is .~ TD: pgTD: 8,436' MD 8,273' MD 7,985' TVD 7 gyp ND Prooosed Tvone MD k Perfs: TVD Ft Perf Date 4,090'- 4,101' 3,641'- 3,652' 11' 4,137'• 4,147' 3,688'- 3,698' 10' Tvonek Perfs: MD TVD Ft Perf Date 4,302'-4,332' 3,853'-3,883' 30' (12/17/08) 4,574'-4,604' ' 4,125'-4,155' ' ' 30' ' (12117/08) 4,926'-4,940 4,476 -4,491 14 ' (9/26108) 5,017'•5,028' 4,562'-4,579' 17 (9/26108) 5,663'-5,674' 5,214'-5,225' 11' (9/25108) 5,698'-5,725' 5,249'-5,276' 27' (9125/08) 5,848'-5,863' 5,399'-5,414' 15' (9/24/08) 6,083'-6,093' 5,634'-5,644' 10' (914108) 6,358'-6,372' 5,908'-5,922' 14' (9/3/08) 7,393'-7,408' 6,942'-6,957' 15' (Sl7/OS) 7,408'-7,418' 6,942'-6,967' 10' (518108) 7,536'-7,574' 7,085'-7,123' 38' (512108) 7,899'-7,926' 7,448'-7,475' 27' (Plugged) 7'940'-7,949' 7,489'-7,498' 9' (Plugged) 7,955'-7,970 7,504'-7,519' 15' (Plugged) 8,032'-8,052' 7,581'-7,601' 20' (Patched) 8,106'-8,120' 7,655'-7,669' 14' (Plugged) Well Name 8 Number: Paxton #2 Lease: Ninilchik Uni[, ADL - 384372 County or Parish: Kenai Peninsula Borough State: Alaska Country: USA Angle @KOP and Depth: ' 2.5° / 100 ft, 325' -1,300' Angle/Perfs: -1.5° KOP (TVD): 325' Date Completed: 3/612008 Ground Level (above MSL): 150' RKB (above GL): 21' Revised By: Mike Sulley Last Revision Date: 12/29/08 r ' S ~ !i Sri l ~ r~ ~~;~ C~ ~~~ ~s~ `~ ik ~~~ AL~SSA OIL ~1~ID G,~--5 CO1~5LR~.ATIOI~T COMl-IISSIOI~T Kyle Miranda Production Engineer Marathon Oil Company PO Box 1949 Kenai AK 99611-1949 SARAH PALIN, GOVERNOR 333 W. 7th AVENUE,-SUITE 100 ANCHORAGE, ALASKA 99501-3539 PHONE (907) 279-1433 FAX (907) 276-7542 Re: Ninilchik Unit, Tyonek Undefined Gas Pool, Paxton #2 Sundry Number: 308-424 Dear Mr. Miranda: Enclosed is the approved Application for Sundry Approval relating to the above referenced well. Please note the conditions of approval. set out in the enclosed form. When providing notice for a representative of the Commission to witness any required test, contact the Commission's petroleum field inspector at (907) 659-3607 (pager). As provided in AS 31.05.080, within 20 days after written notice of this decision, or such further time as the Commission grants for good cause shown, a person affected by it may file with the Commission an application for rehearing. A request for rehearing is considered timely if it is received by 4:30 PM on the 23rd day following the date of this letter, or the next working day if the 23rd day falls on a holiday or weekend. A person may not appeal a Commission decision to Superior Court unless rehearing has been requested. Sincerely, Daniel T. Seamount, Jr. / Chair DATED this Zed lay of December, 2008 f Encl. ~o~--tc~y M Marathon MARATHON Oil Company November 19, 2008 Mr. Tom Maunder Alaska Oil & Gas Conservation Commission 333 W 7th Ave Anchorage, Alaska 99501 Reference: 10-403 Application for Sundry Approvals Field: Ninilchik Unit Well: Paxton #2 • Marathon Oil Company Alaska Asset Team P.O. Box 1949 Kenai, AK 99611 Telephone 907/283-1371 Fax 907/283-1350 Dear Mr. Maunder: Marathon requests permission to continue adding perforations to PAX-2 well. The recent perforation additions did not produce the additional production as anticipated. Plans are to continue moving up hole and add perforations to the T1 sand zone at: MD TVD ft 4,090 - 4,101' 3,641' - 3,652' 11 4,137' - 4,147' 3,688' - 3,698' 10 4,302 '- 4,332' 3,853' - 3,883' 30 4, 574 '- 4, 604' 4,125' - 4,155' 30 Please contact me at (907) 283-1371 if you have any questions or need additional information. Sincerely, ,,,PilJ~/'~~ Kevin J. Skiba Engineering Technician Enclosures: 10-403 Application for Sundry Approvals cc: AOGCC Work Scope Procedure Houston Well File Current Well Schematic Kenai Well File KJS ,, STATE OF ALASKA /~ ,~~ ALASKA OIL AND GAS CONSERVATION COMMi~"510N p "ti APPLICATION FOR SUNDRY APPROVALS~~ ~-~'V` 1~ ~ ~ '~ 20 AAC 25.280 1. Type of Request: Abandon ^ Suspend ^ Operational shutdown^ Perforate ^~ ~ Waiver ^ Other ^ Alter casing ^ Repair well ^ Plug Perforations ^ Stimulate ^ Time Extension ^ Change approved program ^ Pull Tubing ^ Perforate New Pool ^ Re-enter Suspended Well ^ 2. Operator Name: Marathon OII Con1 an p y 4. Current Well Class: 5. Permit to Drill Number: Development ^ , Exploratory ^ 2 64' 3. Address: p0 Box 1949 Stratigraphic ^ Service ^ 6. API Number: Kenai Alaska, 99611-1949 50-133-20573-00-00' 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: ^ Q Paxton#2 No Spacing Exception Required? Yes 9. Property Designation: 10. KB Elevation (ft): 11. Field/Pool(s): i y„~'~~i ~._S ADL - 384372 ~ 171' (21' AGL) , Ninilchik Unit / Tyonek ool 12. PRESENT WELL CONDITION SUMMARY Total Depth MD (ft): Total Depth TVD (ft): Effective Depth MD (ft): Effective Depth TVD (ft): Plugs (measured): Junk (measured): 8,436' 7,985' ~ 8,273' 7,822' 7,890' & 8,022' NA Casing Length Size MD TVD Burst Collapse Structural Conductor g3' 20" 114' 114' 3,060 psi 1,500 psi Surface 1,596' 10-3/4" 1,617' 1,487' 3,580 psi 2,090 psi Intermediate 3,881' 7-5/8" 3,902' 3,453' 6,890 psi 4,790 psi Production Liner 4,700' 4-1 /2" 8,385' 7,934' 8,430 psi 7,500 psi Perforation Depth MD (ft): Perforation Depth TVD (ft): Tubing Size: Tubing Grade: Tubing MD (ft): 4,926' - 8,120' 4,477' - 7,669' 4-1/2" L-80 3,667' Packers and SSSV Type: Packers and SSSV MD (ft): ZXP Liner Packer 3,667' 13. Attachments: Description Summary of Proposal ^ 14. Well Class after proposed work: Detailed Operations Program ~ BOP Sketch ^ Exploratory ^ Development Q Service ^ 15. Estimated Date for 16. Well Status after proposed work: Commencing Operations: January 1, 2009 Oil ^ Gas^ ~ Plugged ^ Abandoned ^ 17. Verbal Approval: Date: WAG ^ GINJ ^ WINJ ^ WDSPL ^ Commission Representative: 18. I hereby certify that the foregoing is true and correct to the best of my knowledge. Contact Kevin Skiba (907) 283-1371 Printed Name Kyle Miranda Title Production Engineer Signature ~ hone (907) 283-1370 Date November 19, 2008 COMMISSION USE ONLY Conditions of approval: Notify Commission so that a representative may witness Sundry Number: ~. a Plug Integrity ^ BOP Test ^ Mechanical Integrity Test ^ Location Clearance ^ Other: Subsequent Form Required: yh1.~ APPROVED BY ~ ~~ /~ A roved b : ~ COMMISSIONER THE COMMISSION Date: pp y Form 10-403 Revised 06/2006 ~~` t `°' ~ ~ ~ ~ ~ i Submit in Duplicate • M MARATHON Marathon Oil Corporation Field: Ninilchik WBS: Requested PAXTON 2 November 19, 2008 Well Status: 3150 Mcf/d @ 790 psi (SCADA 11-19-08) and 2.8 BWPD (TOW 11-19-08). Objective: Perforate Tyonek T1. Depth and surface pressure to fire guns: Top 13c~ttoxn . Net Gun Lengths CH4 Surface pressure to shoat Wit: 4574' 4604' 30' 1 x 20' and 1 x 10' 1060 psi 4302' 4332' 30' 1 x 20' and 1 x 10' 1000 psi 4137' 4147' 10' 1 x 10' 960 psi 4090' 4101' 11' 1 x 10' 950 psi Guns to be used: Chi API target performance: Max dun swell in air: Procedure• 3-3/8" HSD guns loaded 6 SPF 60 degree-phased SPD-3125-311NT3 charges and PX-1 firing head. 0.36" entrance hole and 40.25" penetration. 3.635" OD. 1. a) Remove well house. b) MI diesel man-lift. c) MIRU Expro E-line service with full lubricator, pump-in sub, flow tubes, and pressure control equipment on 4-1/2" Otis Tree cap. d) Hold PJSM. e) PT lubricator to 2000 psi (MPSP+) with 50/50 methanol water. f) RIH with dummy guns to minimum depth needed for CCL correlation. POOH. 2. a) RIH with 30' of guns in tandem, type shown above. b) Correlate Expro CBL/GR/CCL log depth to open-hole logs. c) SI well long enough to obtain 1060 psi WHP (underbalanced at 40% DD). d) Pull up into position and shoot 4574' - 4604' (OH). Leave well shut in for 15 minutes while POOH. Observe and note pressure build rate over 15 minutes. Open well to flow while continuing to POOH. LD spent perf gun. 3. a) RIH with 30' of guns in tandem, type shown above. b) Correlate Expro CBL/GR/CCL log depth to open-hole logs. c) SI well long enough to obtain 1000 psi WHP (underbalanced at 40% DD). d) Pull up into position and shoot 4302' - 4332' (OH). Leave well shut in for 15 minutes while POOH. Observe and note pressure build rate over 15 minutes. Open well to flow while continuing to POOH. LD spent perf gun. 4. a) RIH with 10' of guns, type shown above. b) Correlate Expro CBL/GR/CCL log depth to open-hole logs. c) SI well long enough to obtain 960 psi WHP (underbalanced at 40% DD). d) Pull up into position and shoot 4137' - 4147' (OH). Leave well shut in for 15 minutes while POOH. Observe and note pressure build rate over 15 minutes. Open well to flow while continuing to POOH. LD spent perf gun. 5. a) RIH with 10' of guns, type shown above. b) Correlate Expro CBL/GR/CCL log depth to open-hole logs. c) SI well long enough to obtain 950 psi WHP (underbalanced at 40% DD). d) Pull up into position and shoot 4090' - 4100' (OH). Leave well shut in for 15 minutes while POOH. Observe and note pressure build rate over 15 minutes. Open well to flow while continuing to POOH. LD spent perf gun. e) LD spent perf gun and lubricator. RD Expro. Return well to production. Flow test. 6. Produce well to sales. CONTACTS Ken Walsh: 907-283-1311 (w) Kyle Miranda: 907-283-1370 (w) 907-394-3060 (c) 907-394-8271 (c) Lyndon Ibele: 907-565-3042 (w) Clyde Scott: 713-296-2336 (w) 907-748-2819 (c) Ninilchik Operators: 907-260-7660 or 907-567-3248 (Susan Dionne Pad) KGF Operators: 907-2831305 PAX 2 Add perfs -Kyle Miranda 11/19/2008 3:22:51 PM i i 50-133.20573.00.00 a: zo7.lsao .y Des: ADL - 384372 DD.07.16241.CAP 206,414.356 (NAD27) 2,230,614.114 (NAD27) 60 OS' 43.394" N 151 36' 38.544" W 06:30 hrs 01/18/2008 KOP @ 325' MDITVD Build 4.0 degN00' from 487-1362' MD Hold 38.35 deg from 1362-2668' MD Drop 3.0 deg/100'to 3918' MD Hold 0 deg from 3918' to TD at 8448' MD Paxton #2 Ninilchik Unit 746' FNL, 2914' FEL Sec. 13, T1 S, R14W, S.M. J Tubing String - 4.5", 12.6#, L-80, Hydril 563 Casing String - 4.5", 12.6#, L-80, Hydril 563 Baker Chemical Injection Nipple @2,397' MD (Top) 5.750" OD/3.895" ID ZXP Liner Packer with 6' Tieback Extension @ 3,66T MD (Top) Flex-Lock Liner Hanger @ 3701' MD (Top) Marker Joint Top @7987' MD (20' long) Marker Joint Top @7012' MD (20' long) 4-1/2" CIBP @ 7,890' 4-112" CIBP @ 8,022' Expro Radial Bond Log - 02/192008 ~ c ~ C ~ 6 a ~ ~ E J C ~ C ~ c 9 C a e '~ Formation Tops: Formation Depth (MD) Deoth (SSTVDI Beluga Tyonek TKT 3,946' 3,328 Tyonek T2 4,896' 4,278' Tyonek T3 6,048' 5,430' TD 8,448' 8,000' Chemical Injection Nipple @ 2,397' MD TD: pgTD: 8,436' MD 8,273' MD 7,985' TVD 7,822' TVD M MARATHON Conductor 20" K-55 133 ppf PE Bottom MD 0' 114 TVD 0' 114' Surface Casing 10-314" J-55 45.5 ppf BTC Tom Bottom MD 0' 1,617' TVD 0' 1,487' 13.1/2" hole with 457sks (202 bbls) 12 ppg Type 1 Cmt with 100% returns and 40 bbls Cmt to surface. Intermediate Casing 7.5/8" L-80 29.7 ppf BTC Tom Bottom MD 0' 3,902' TVD 0' 3,453' 9-718" hole with 265sks (99 bbls) 12.0 ppg Type 1 Lead Cmt & 150sks (31 bbls) 15.8 ppg Class G Cmt Tail. Slight interface returns to surface. Tie-backTubinn 4.112" L-80 12.6 ppf Hydril 563 T~ Bottom MD 0' 3,667' TVD 0' 3,219' Production Liner 4-112" L-80 12.6 ppf Hydril 563 Two Bottom MD 3,685' 8,385' TVD 3,237' 7,934' 6-3/4" hole Cmt wl 284 sks (210 bbls) 10.5 ppg Class G, 100 % Returns. 25 bbls cmt returns. Tvonek Perfs: MD TVD Ft Perf Date 4,926'-4,940' 4,476'-4,491' 14' (9/26108) 5,011'-5,028' 4,562'-4,579' 17' (9/26/08) 5,663'-5,674' 5,214'-5,225' 11' (9/25/08) 5,698'-5,725' 5,249'-5,276' 27' (9/25/08) 5,848'-5,863' 5,399'-5,414' 15' (9/24/08) 6,083' - 6,093' 5,634' - 5,644' 10' (9/4/08) 6,358' - 6,372' 5,908' - 5,922' 14' (913/08) 7,393' - 7,408' 6,942'- 6,957 15' (517108) a 7,408'• 7,418' 6,942'- 6,967' 10' (5/8/08) 7,536'- 7,574' 7,085'- 7,123' 38' (5/2108) 7,899' - 7,926' 7,448' - 7,475' 27' (Plugged) 7'940' - 7,949' 7,489' - 7,498' 9' (Plugged) 7,955'-7,970 7,504'-7,519' 15' (Plugged) 8,032'-8,052' 7,581'-7,601' 20' (Patched) 8,106' - 8,120' 7,655' - 7,669' 14' (Plugged) Well Name & Number: Paxton #2 Lease: Ninilchik Unit ADL - 384372 Count or Parish: Kenai Peninsula Borou h State/Prov: Alaska Country: USA An le @KOP and Depth: - 2.5° / 100 ft, 325' • 1,300' An le/Perfs: - 1.5° KOP (TVD): 325' Date Completed: Ground Level above MSL : 150' RKB above GL : 21' Revised By: Kevin Skiba Last Revision Date: 10/22/08 M Marathon MARATHON Oil Company October 24, 2008 OCT l~«~ ,~tisK-, ~~~, ~ ~s<~: Marathon Oil Company Alaska Asset Team P.O. Box 1949 Kenai, AK 99611 Telephone 907/283-1371 Fax 907/283-1350 Mr. Tom Maunder Alaska Oil & Gas Conservation Commission 333 W 7t" Ave Anchorage, Alaska 99501 Reference: 10-404 Report of Sundry Well Operations Field: Ninilchik Unit Well: Paxton #2 Dear Mr. Maunder: Attached for your records is the Report of Sundry Well Operations, 10-404, for PAX-2 well. This sundry covers the work performed to add eighty four feet of perforations to the Tyonek T-2 sands. All work performed was completed under Sundry #308-328. PAX-2 is presently flowing at 3,395 mcf at 780 psi. Please contact me at (907) 283 -1371 if you have any questions or need additional information. Sincerely, Kevin J. Skiba Engineering Technician Enclosures: 10-404 Report of Sundry Well Operations cc: Houston Well File Operations Summary Kenai Well File Current Well Schematic KJS KDW ' STATE OF ALASKA ALAS~OIL AND GAS CONSERVATION COMMISSION REPORT OF SUNDRY WELL OPERATIONS • 0~~ ~, i*.. ~GZ~ ~; ~ ~ ~ ~'f, 1. Operations Abandon Repair Well Plug Perforations Stimulate ,~~.,~;~ ; j;~~~ '' Performed: Alter Casing ^ Pull Tubing ^ Perforate New Pool ^ Waiver ^ Time Extens~ber~^,~";` Change Approved Program ^ Operat. Shutdown ^ Perforate Q ~ Re-enter Suspended Well ^ 2. Operator 4. Well Class Before Work: 5. Permit to Drill Number: Name: Marathon Oil Company Development ^~ i Exploratory^ 20 164 ' 3. Address: PO Box 1949 Stratigraphic ^ Service ^ 6. API Number: Kenai Alaska, 99611-1949 50-133-20573-00-00 7. KB Elevation (ft): 9. Well Name and Number: 171' (21' AGL) ~ Paxton #2 - 8. Property Designation: 10. Field/Pool(s): ADL - 384372 - Ninilchik Unit / Tyonek Pool 11. Present Well Condition Summary: Total Depth measured 8,436' - feet Plugs (measured) 7,890' & 8,022' true vertical 7,985' ~ feet Junk (measured) NA Effective Depth measured $,273' feet true vertical 7,822 feet Casing Length Size MD TVD Burst Collapse Structural Conductor 93' 20" 114' 114' 3,060 psi 1,500 psi Surface 1,596' 10-3/4" 1,617' 1,487' 3,580 psi 2,090 psi Intermediate 3,881' 7-5/8" 3,902' 3,453' 6,890 psi 4,790 psi Production Liner 4,700' 4-1/2" 8,385' 7,934' 8,430 psi 7,500 psi Perforation depth: Measured depth: 4,926' - 8,120' True Vertical depth: 4,477' - 7,669' Tubing: (size, grade, and MD) 41/2" L-80 3,667' Packers and SSSV (type and measured depth) ZXP Liner Packer 3,667' 12. Stimulation or cement squeeze summary: Intervals treated (measured): Treatment descriptions including volumes used and final pressure: ` 13. Representative Daily Average Production or Injection Data Oil-Bbl Gas-Mcf Water-Bbl Casing Pressure Tubing Pressure Prior to well operation: 0 3,360 4 200 765 Subsequent to operation: 0 3,395 3 200 780 14. Attachments: 15. Well Class after work: Copies of Logs and Surveys Run Exploratory ^ Development ~ ~ Service ^ Daily Report of Well Operations X 16. Well Status after work: Oil ^ Gas ~' WAG ^ GINJ ^ WINJ ^ WDSPL ^ 17. I hereby certify that the foregoing is true and correct to the best of my knowledge. Sundry Number or N/A if C.O. Exempt: 308-328 Contact Kevin Skiba (907) 283-1371 Printed Name Kevin J. Skiba Title Engineering Technician ` Signature ~ Phone (907) 283-1371 Date October 24, 2008 Form 10-404 Revised 04/20Q6 ^ ~ ~ ^ ~ ~ ~ I H 1 Submit Original Only ~}-~~C • 50-133-20573-00-00 # : 207-1640 Des: ADL - 384372 DD.07.16241.CAP 206,414.356 (NAD27) Chemical Injection Nipple ~ 2,397' MD ~~ (-. -~i (~ ~~''- M MARATNOM Conductor 20" K-55 133 ppf PE T~ Bottom MD 0' 114 TVD 0' 774' Surface Casing 70-314" J-55 45.5 ppf BTC T~ Bottom MD 0' 1,617' TVD 0' 1,487' 13-1/2" hole with 457sks (202 bbls) 12 ppg Type 1 Cmt with 100 % returns and 40 bbls Cmt to surface. Intermediate Casino 7-5/8" L-80 29.7 ppf BTC Tom Bottom MD 0' 3,902' TVD 0' 3,453' 9-7I8" hole with 265sks (99 bbls) 72.0 ppg Type t Lead Cmt 8: 150sks (31 bbls) 15.8 ppg Class G Cmt Tail. Slight interface returns to surface. Tie-backTubino 4.112" L-80 12.6 ppf Hydril 563 Bottom MD 0' 3,667' TVD 0' 3,219' Production Liner 4.1/2" L-80 12.6 ppf Hydril 563 T~ Bottom MD 3,685' 8,385' TVD 3,237' 7,934' 6-3/4" hole Cmt w/ 284 sks (210 bbls) 10.5 ppg Class G, 100 % Returns. 25 bbls cmt returns. Tvonek Perfs: MD TVD Ft PerfDate 4,926'd,940' 4,476'-0,491' 14' (9126/08) 5,011'•5,028' 4,562'-4,579' 17' (9126/08) 5,663'-5,674' 5,214'-5,225' 11' (9/25/08) 5,698'-5,725' 5,249'-5,276' 27' (9125/08) 5,848'-5,863' 5,399'-5,414' 15' (9124/08) 6,083' - 6,093' 5,634' - 5,644' 10' (9/4/08) 6,358' - 6,372' 5,908' - 5,922' 14' (9/3/OS) 7,393' - 7,408' 6,942'- 6,957' 15' (517/08) 7,408'- 7,418' 6,942'- 6,967' 10' (5/8/08) 7,536'- 7,574' 7,085'- 7,123' 38' (512/08) 7,899' - 7,926' 7,448' - 7,475' 27' (Plugged) 7'940' - 7,949' 7,489' - 7,498' 9' (Plugged) 7,955'-7,970 7,504'-7,519' 15' (Plugged) 8,032' - 8,052' 7,581' - 7,601' 20' (Patched) 8,106' - 8,120' 7,655' - 7,669' 14' (Plugged) Well Name & Number: Paxton #2 Lease: Ninilchik Unit ADL - 384372 Count or Parish: Kenai Peninsula Borou h State/Prov: Alaska Country: USA An le KOP and Depth: - 2.5° / 100 ft, 325' - 1,300' An le/Perfs: ' 1.5° KOP TVD : 325' Date Completed: Ground Level (above MSL : 150' RKB above GL): 21' Revised B : Kevin Skiba Last Revision Date: 10/22/08 Paxton #2 Ninilchik Unit 746' FNL, 2914' FEL Sec. 13, T1 S, R14W, S.M. • ~~ SARAH PALIN GOVER NOR ~a7~[1 Octal ~ ~S ~~ 333 W. 7th AVENUE, SUITE 100 COI~TSIriRQA'1`IO1Q COh'II-iISSIOIQ ~ ANCHORAGE, ALASKA 99501-3539 PHONE (907) 279-1433 FAX (907) 278-7542 Ken Walsh Senior Production Engineer Marathon Oil Company PO Box 1949 Kenai, AK 99611 Re: Ninilchik Unit, Tyonek Undefined Gas Pool, Paxton #2 Sundry Number: 308-328 Dear Mr. Walsh: Enclosed is the approved Application for Sundry Approval relating to the above referenced well. Please note the conditions of approval set out in the enclosed form. When providing notice for a representative of the Commission to witness any required test, contact the Commission's petroleum field inspector at (907) 659-3607 (pager). As provided in AS 31.05.080, within 20 days after written notice of this decision, or such further time as the Commission grants for good cause shown, a person affected by it may file with the Commission an application for rehearing. A request for rehearing is considered timely if it is received by 4:30 PM on the 23rd day following the date of this letter, or the next working day if the 23rd day falls on a holiday or weekend. A person may not appeal a Commission decision to Superior Court unless rehearing has been requested. Sincerely, Daniel T. Seamount, Jr. Chair DATED this ~ day of September, 2008 Encl. a~~--«~ M Marathon MARATHON Oil Company September 11, 2008 Mr. Tom Maunder Alaska Oil & Gas Conservation Commission 333 W 7t" Ave Anchorage, Alaska 99501 Reference: 10-403 Application for Sundry Approvals Field: Ninilchik Unit Well: Paxton #2 Dear Mr. Maunder: Marathon Oil Company Alaska Asset Team P.O. Box 1949 Kenai, AK 99611 Telephone 907/283-1371 Fax 907/283-1350 ~ p ~ 2 2008 Alasi~a ail ~ G~~, ~o~~. Ccr~r ~iv~ir~r~ A~s«~~s~r;~~~c Marathon requests permission to continue adding perforations to PAX-2 well. The recent perforation additions did not produce the additional production as anticipated. Plans are to continue moving up hole and add perforations to five T2 sand zones. Please contact me at (907) 283-1371 if you have any questions or need additional information. Sincerely, .~l;vvw ' Kevin J. Skib Engineering Technician Enclosures: 10-403 Application for Sundry Approvals Work Scope Procedure Current Well Schematic Proposed Well Schematic cc: AOGCC Houston Well File Kenai Well File KJS KDW --~~ i STATE OF ALASKA ~ 9/08 ~-~~ ~~ ~ ~.- ,~ ALAS OIL AND GAS CONSERVATION COMMI ION APPLICATION FOR SUNDRY APPROVAL ~'~~~° ~;;.=~ ~ ~ LOCH 20 AAC 25.280 1. Type of Request: Abandon^ Suspend ^ Operational shutdown^ Perforate ^~ - ,',~1l~Iv~~ ; ~'.- ~~ ~r :7fllitiTS3 i Alter casing ^ Repair well ^ Plug Perforations ^ Stimulate ^ Time Extension ~~ • a Change approved program ^ Pull Tubing ^ Perforate New Pool ^ Re-enter Suspended Well ^ J 2. Operator Name: Marathon OII COn1 an p y 4. Current Well Class: 5. Permit to Drill Number: Development ^, Exploratory ^ 2 164 3. Address: PO BOX 1949 Stratigraphic ^ Service ^ 6. API Number: Kenai Alaska, 99611-1949 50-133-20573-00-00 - 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: ^ N 0 Paxton #2 Spacing Exception Required? Yes o 9. Property Designation: 10. KB Elevation (ft): 11. Field/Pool(s): ADL - 384372 ' 171' (21' AGL) ! Ninilchik Unit / Tyonek Pool 12: PRESENT WELL CONDITION SUMMARY Total Depth MD (ft): Total Depth TVD (ft): Effective Depth MD (ft): Effective Depth TVD (ft): Plugs (measured): Junk (measured): 8,436' ~ 7,985' 8,273' 7,822' 7,890' & 8,022' NA Casing Length Size MD ND Burst Collapse Structural Conductor 93' 20" 114' 114' 3,060 psi 1,500 psi Surface 1,596' 10-3/4" 1,617' 1,487' 3,580 psi 2,090 psi Intermediate 3,881' 7-5/8" 3,902' 3,453' 6,890 psi 4,790 psi Production Liner 4,700' 4-1 /2" 8,385' 7,934' 8,430 psi 7,500 psi Perforation Depth MD (ft): Perforation Depth TVD (ft): Tubing Size: Tubing Grade: Tubing MD (ft): 6,081' - 8,120' 5,632' - 7,669' 4-1/2" L-80 3,667' Packers and SSSV Type: Packers and SSSV MD (ft): ZXP Liner Packer 3,667' 13. Attachments: Description Summary of Proposal ^ 14. Well Class after proposed work: Detailed Operations Program 0 BOP Sketch ^ Exploratory ^ Development ^~ Service ^ 15. Estimated Date for 16. Well Status after proposed work: Commencing Operations: September 18, 2008 Oil ^ Gas Q ~ Plugged ^ Abandoned ^ 17. Verbal Approval: Date: WAG ^ GINJ ^ WINJ ^ WDSPL ^ Commission Representative: 18. I hereby certify that the foregoing is true and correct to the best of my knowledge. Contact Kevin Skiba (907) 283-1371 Printed Name Ken D. Walsh Title Senior Production Engineer * r ^ hone Date Signature 2008 (907) 283-1311 September 11 I , J w COMMISSION USE ONLY Conditions of approval: Notify Commission so that a representative may witness Sundry Number: ~g '' est ^ Mechanical Integrity Test ^ Location Clearance ^ Plug Integrity ^ BOP T Other: ~~\~~(~~ `C~V \~~I`~~~`~'`~~~~ ~~~5 ~~~~ Subsequent Form Required: t~'O APPROVED BY V' / / ~ Approved by: COMMISSIONER THE COMMISSION Date: ~ o ~~~~~1RIr~~ ~~F~,5PP~~2008 Form 10-403 Revised 06/2006 J ~~?, s -` Submit in Duplicate . ~-,,, ~~ • M MARATHON September 10, 2008 Marathon Oil Corporation Alaska Asset Team Paxton #2 WBS# Requested Objective: Perforate the following Tyonek T2 sands: 4930' - 4944' (14' net) 5015' - 5032' (17' net) 5666' - 5677' (11' net) 5701' - 5728' (27' net) 5851' - 5866' (15' net) Guns to be used: 3-3/8" HSD guns loaded 6 SPF 60 degree-phased with SDP-3125-311NT3 charges and PX-1 firing head. API target performance: 0.36" entrance hole and 40.25" penetration. Max gun swell in air: 3.625" OD. Well Status: Flowing at 3.450 MMcf/d @ 790 psi (SCADA 9/7/08) and 1.5 BWPD (TOW 9- 6-08). Procedure• a) No well house currently on wellhead. b) MI diesel man-lift. c) MIRU Expro E-line service with full lubricator, pump-in sub, flow tubes, and pressure control equipment on 4-1/2" Otis Tree cap. d) Hold PJSM. e) Pressure Test lubricator to 2000 psi with KCL water. f) RIH with 3.70" GR to 5900' MD. 2. a) RIH w/ 15' of guns (type shown above). b) Correlate Expro CBL/GR/CCL log depth to open-hole logs. c) SI well long enough to obtain 1340 psi WHP (underbalanced at 40% DD). d) Pull up into position and shoot 5851' - 5866' (OH). Leave well shut in for 15 minutes while POOH. Observe and note pressure build rate over 15 minutes. Open well to flow while continuing to POOH. e) LD spent perf gun and lubricator. RD Expro. Return well to production. Flow test. 3. a) RU Expro b) RIH w/ 27' of guns (type shown above). c) Correlate Expro CBL/GR/CCL log depth to open-hole logs. d) SI well long enough to obtain 1310 psi WHP (underbalanced at 40% DD). Paxton #2 Add perfs - MD Dammeyer 9/10/2008 2:51:13 PM ~ i e) Pull up into position and shoot 5701' - 5728' (OH). Leave well shut in for 15 minutes while POOH. Observe and note pressure build rate over 15 minutes. Open well to flow while continuing to POOH. f) LD spent perf gun and lubricator. RD Expro. Return well to production. Flow test. 4. a) RU Expro b) RIH w/ 11' of guns (type shown above). c) Correlate Expro CBL/GR/CCL log depth to open-hole logs. d) SI well long enough to obtain 1300 psi WHP (underbalanced at 40% DD). e) Pull up into position and shoot 5666' - 5677' (OH). Leave well shut in for 15 minutes while POOH. Observe and note pressure build rate over 15 minutes. Open well to flow while continuing to POOH. f) LD spent perf gun and lubricator. RD Expro. Return well to production. Flow test. 5. a) RU Expro b) RIH w/ 17' of guns (type shown above). c) Correlate Expro CBL/GR/CCL log depth to open-hole logs. d) SI well long enough to obtain 1160 psi WHP (underbalanced at 40% DD). e) Pull up into position and shoot 5015' - 5032' (OH). Leave well shut in for 15 minutes while POOH. Observe and note pressure build rate over 15 minutes. Open well to flow while continuing to POOH. fj LD spent perf gun and lubricator. RD Expro. Return well to production. Flow test. 6. a) RU Expro b) RIH w/ 14' of guns (type shown above). c) Correlate Expro CBL/GR/CCL log depth to open-hole logs. d) SI well long enough to obtain 1140 psi WHP (underbalanced at 40% DD). e) Pull up into position and shoot 4930' - 4944' (OH). Leave well shut in for 15 minutes while POOH. Observe and note pressure build rate over 15 minutes. Open well to flow while continuing to POOH. f) LD spent perf gun and lubricator. RD Expro. Return well to production. Flow test 7. Produce well to sales. CONTACTS Ken Walsh: 907-283-1311 (w) Scott Szalkowski: 713-296-3390 (w) 907-394-3060 (c) 713- 301-9834 (c) Lyndon Ibele: 907-565-3042 (w) Clyde Scott: 713-296-2336 (w) 907-748-2819 (c) Ninilchik Operators: 907-260-7660 or 907-567-3248 (Susan Dionne Pad) KGF Operators: 907-2831305 Paxton #2 Add perfs - MD Dammeyer 9/10/2008 2:51:13 PM C~ 50-133-20573-00-00 # : 207-1640 Des: ADL 384372 ', DD.07.16241.CAP 206,414.356 (NAD27) 2,230,614.114 (NAD27) 60 OS' 43.394" N 151 36' 38.544" W 06:30 hrs 01118/2008 KOP @ 325' MDITVD Build 4.0 deg/100' from 487.1362' MD Hold 38.35 deg from 1362-2668' MD Drop 3.0 deg1100'to 3918' MD Hold 0 deg from 3918' to TD at 8448' MD Paxton #2 Ninilchik Unit 746' FNL, 2914' FEL Sec. 13, T1S, R14W, S.M. J ~ ~L Chemical Injection Nipple @ 2,397' MD Chemical Injection Nipple @2,397' MD (Top) 5.750" OD/3.895" ID Liner Packer with 6' Tieback F~ttension @ 3,667' MD (Top) Liner Hanger @ 3701' MD (Top) Joint Top @7987' MD (20' long) Joint Top @7012' MD (20' long) 4-112" CIBP @ 7,890' 4-1/2" CIBP @ 8,022' Expro Radial Bond Log - 0 211 92 0 08 ss >- )C \1 ~ c a ~ Formation Tops: Formation Deoth (MD) Depth (SSTVD) Beluga Tyonek TKT 3946' 3328 Tyonek T2 4896' 4278' Tyonek T3 6048' 5430' TD 8448' 8000' s `~ TD: 8,436' MD 7,985' TVD PBTD: 8,273' MD 7,822' TVD • M MARATUON Conductor 20" K-55 133 ppf PE Two Bottom MD 0' 114 TVD 0' 114' Surface Casing 10.314" J-55 45.5 ppf BTC Top Bottom MD 0' 1,617' TVD 0' 1,487' 13-112" hole with 457sks (202 bbls)12 ppg Type 1 Cmt with 100 % returns and 40 bbls Cmt to surface. Intermediate Casing 7.518" L-80 29.7 ppf BTC Two Bottom MD 0' 3,902' TVD 0' 3,453' 9-718" hole with 265sks (99 bbls) 12.0 ppg Type 1 Lead Cmt & 1505ks (31 bbls) 15.8 ppg Class G Cmt Tail. Slight interface returns to surface. Tie-backTubing 4.1/2" L-80 12.6 ppf Hydril 563 T~ Bottom MD 0' 3,667' TVD 0' 3,219' Production Liner 41/2" L-80 12.6 ppf Hydril 563 T~ Bottom MD 3,685' 8,385' TVD 3,237' 7,934' 6-314" hole Cmt w/ 284 sks (210 bbls) 10.5 ppg Class G, 100 % Returns. 25 bbls cmt returns. Tvonek Perfs: MD TVD Ft 6,083' - 6,093' 5,634' - 5,644' 10' (Pert 9/4108) 6,358' - 6,372' 5,908' - 5,922' 14' (Pert 9/3108) 7,393' - 7,408' 6,942'- 6,957' 15' (Pert 517/08) 7,408'- 7,418' 6,942'- 6,967' 10' (Pert 518/08) 7,536'- 7,574' 7,085'- 7,123' 38' (Pert 512108) 7,899' - 7,926' 7,448' - 7,475' 27' (Plugged) 7'940' - 7,949' 7,489' - 7,498' 9' (Plugged) 7,955'-7,970 7,504'-7,519' 15' (Plugged) 8,032'-8,052' 7,581'-7,601' 20' (Patched) 8,106' - 8,120' 7,655' - 7,869' 14' (Plugged) ^t Well Name & Number: Paxton #2 Lease: Ninilchik Unit Count or Parish: Kenai Peninsula Borou h State/Prov: Alaska Count USA An ie @KOP and Depth: 4 An le/Perfs: 0 KOP (TVD : 325' Dare Completed: Ground Level (above MSL): 150' RKB (above GL : 21' Rewsed Bv: Mikc Soucy Last Revision Date: 09/04/08 50-133-20573-00-00 n: zo7-lsao Des: ADL 384372 :_ DD.07.16241.CAP 206,414.356 (NAD27) 2,230,614.114 (NAD27) 60 OS' 43.394" N 151 36' 38.544" W 06:30 hrs 01/18/2008 06:00 hrs 211/2008 KOP @ 325' MD/TVD Build 4.0 deg1100' from 487-1362' MD Hold 38.35 deg from 1362-2668' MD Drop 3.0 deg/100' to 3918' MD Hold 0 deg from 3918' to TD at 8448' MD Paxton #2 Ninilchik Unit Proposed 746' FNL, 2914' FEL Sec. 13, T1S, R14W, S.M. Chemical Injection Nipple @2,397' MD (Top) 5.750" OD/3.895" ID Liner Packer with 6' Teback 6ctension @ 3,667' MD (Top) Flex-Lock Liner Hanger @ 3701' MD (Top) Marker Joint Top @7987' MD (20' long) Marker Joint Top @7012' MD (20' long) 4-112" CIBP @ 7,890' 4-1/2" CIBP @ 8,022' Expro Radial Bond Log - 02/192008 ~ C ~ c a c a c 6 Formation Tops: Formation Depth (MD) Depth (SSTVD) Beluga Tyonek TKT 3946' 3328 Tyonek T2 4896' 4278' Tyonek T3 6048' 5430' TD 8448' 8000' ~~ TD: 8,436' MD 7,985' TVD PBTD: 8,273' MD 7,822' TVD M MARATIIOM Conductor 20" K-55 133 ppf PE t~ Toe Bottom MD 0' 114 Chemical Injection TVD 0' 114' Nipple @ 2,397' MD Surface Casing 10-314" J-55 d5.5 ppf BTC Two Bottom MD 0' 1,617' TVD 0' 1,487' 13-1/2" hole with 457sks (202 bbls) 12 ppg Type 1 Cmt with 100% returns and 40 bbls Cmt to surface. Intermediate Casing 7.518" L-80 29.7 ppf BTC Two Bottom MD 0' 3,902' TVD 0' 3,453' 9-718" hole with 265sks (99 bbls) 12.0 ppg Type 1 Lead Cmt & 1505ks (31 bbls) 15.8 ppg Class G Cmt Tail. Slight interface returns to surface. Tie-backTubing 4.112" L-80 12.6 ppf Hydril 563 Two Bottom MD 0' 3,667' TVD 0' 3,219' Production Liner 4.112" L-80 12.6 ppf Hydril 563 Tom Bottom MD 3,685' 8,385' TVD 3,237' 7,93d' 6-314" hole Cmt w1284 sks (210 bbls) 10.5 ppg Class G, 100 % Returns. 25 bbls cmt returns. Proposed Tvone k Perfs: MD TVD Ft 4930' - 4944' 4481'495' 14' 5015' -5032' 4566'-4583' 17' 5666' -5677' 5217'-5228' 11' 5701' - 5728' 5252'-5279' 27' 5851'- 5866' 5402'-5417' 15' Tvonek Perfs: MD TVD Ft 6,083' - 6,093' 5,634' - 5,644' 10' (Pert 9/x/08) 6,358' - 6,372' 5,908' - 5,922' 14' (Pert 9/x/08) 7,393' - 7,408' 6,942'- 6,957' 15' (Pert 5/7/08) 7,408'- 7,418' 6,942'- 6,967' 10' (Pert 518/08) 7,536'- 7,574' 7,085'- 7,123' 38' (Pert 5/2/08) 7,899'-7,926' 7,448'-7,475' 27' (Plugged) 7'940' - 7,949' 7,489' - 7,498' 9' (Plugged) 7,955'-7,970 7,504'-7,519' 15' (Plugged) 8,032'-8,052' 7,581'-7,601' 20' (Patched) 8,106'-8,120' 7,655'-7,669' 14' (Plugged) Well Name & Number: Paxton #2 Lease: Ninilchik Unit County or Parish: Kenai Peninsula Borou h State/Prov: Alaska Count USA An le @KOP and Depth: 4 An le/Perfs: 0 KOP TVD): 325' Date Completed: Ground Level above MSL : 150' RKB above GL : 21' Prepared B : Damme er Last Revision Date: 09/07/08 ,~ • M Marathon MARATHON Oil Company • September 11, 2008 Mr. Tom Maunder Alaska Oil & Gas Conservation Commission 333 W 7t" Ave Anchorage, Alaska 99501 Reference: 10-404 Report of Sundry Well Operations Field: Ninilchik Unit Well: Paxton #2 Marathon Oil Company Alaska Asset Team P.O. Box 1949 Kenai, AK 99611 Telephone 907/283-1371 Fax 907/283-1350 ~P ~ 2f1~$ Oil ~~~. ~::.. ~a~ Dear Mr. Maunder: Attached for your records is the Report of Sundry Well Operations 10-404 for PAX-2 well. This sundry covers the perforating work completed under Sundry #308-303. Twenty four feet of perforations were added to the Tyonek formation at 6,081'-6,091' and 6,356'-6,370'. Gas production was unchanged and Marathon intends to submit a new 10-403 Sundry to continue adding perforations. Please contact me at (907) 283 -1371 if you have any questions or need additional information. Sincerely, Kevin J. Skiba Engineering Technician Enclosures: 10-404 Report of Sundry Well Operations Operations Summary Current Well Schematic cc: Houston Well File Kenai Well File KJS KDW ' TAT F A A KA ~g ~,~ ~,~ . ALA OIL AND GAS CONSERVATION COM~SION yP~ ~, S ~ i ~ ~ l_~~En REPORT OF SUNDRY WELL OPERATIONS 1. Operations Abandon Repair Well Plug Perforations Stimulate Other ' , ' ~ . r. f Performed: Alter Casing ^ Pull Tubing ^ Perforate New Pool ^ Waiver^ Time Extension a `'" Change Approved Program ^ Operat. Shutdown ^ Perforate ~ ~ Re-enter Suspended Well ^ 2. Operator Marathon Oil Company N 4. Well Class Before Work: 5. Permit to Drill Number: ame: Development Q Exploratory^ 2U -164' 3. Address: PO Box 1949 Stratigraphic ^ Service ^ 6. API Number: Kenai Alaska, 99611-1949 50-133-20573-00-00 7. KB Elevation (ft): 9. Well Name and Number: 171' (21' AGL) ° Paxton #2 8. Property Designation: 10. Field/Pool(s): ADL - 384372 ' Ninilchik Unit / Tyonek Pool 11. Present Well Condition Summary: Total Depth measured 8,436' ~ feet Plugs (measured) 7,890' & 8,022' true vertical 7,985' ' feet Junk (measured) NA Effective Depth measured $,273' feet true vertical 7,822' feet Casing Length Size MD TVD Burst Collapse Structural Conductor 93' 20" 114' 114' 3,060 psi 1,500 psi Surface 1,596' 10-3/4" 1,617' 1,487' 3,580 psi 2,090 psi Intermediate 3,881' 7-5/8" 3,902' 3,453' 6,890 psi 4,790 psi Production Liner 4,700' 41/2" 8,385' 7,934' 8,430 psi 7,500 psi Perforation depth: Measured depth: 6,081' - 8,120' True Vertical depth: 5,632' - 7,669' Tubing: (size, grade, and MD) 4-1/2" L-80 3,667' Packers and SSSV (type and measured depth) ZXP Liner Packer 3,667' 12. Stimulation or cement squeeze summary: Intervals treated (measured): Perforated: MD ND 10' 6,081'-6,091' 5,632'-5,642' Treatment descriptions including volumes used and final pressure: 14' 6,356'-6,370' 5,906'-5,920' 13. Representative Daily Average Production or Injection Data Oil-Bbl Gas-Mcf Water-Bbl Casing Pressure Tubing Pressure Prior to well operation: 0 3,475 1 180 788 Subsequent to operation: 0 3,475 1.5 180 784 14. Attachments: 15. Well Class after work: Copies of Logs and Surveys Run Exploratory ^ Development Q' Service ^ Daily Report of Well Operations X 16. Well Status after work: Oil ^ Gas ^~ ~ WAG ^ GINJ ^ WINJ ^ WDSPL ^ 17. I hereby certify that the foregoing is true and correct to the best of my knowledge. Sundry Number or N/A if C.O. Exempt: 308-303 Contact Kevin Skiba (907) 283-1371 Printed Name Kevin J. Skiba Title Engineering Technician Signature ~ Phone (907) 283-1371 Date September 11, 2008 V Form 10-404 Revised 04/2U@6("~ ~ ~ ~ ~~~ ~ ~: ;?~~ `~ ~ ~QQQ Submit Original Only ~~,~ ti.a 1 \ a ~,~ i i - '~,-. • y ~ r ' 50.133.20573.00-00 # : zo7-1 sao Des: ADL 384372 :_ DD.07.16241.CAP 206,414.356 (NAD27) 2,230,614.114 (NAD27) 60 OS' 43.394" N 151 36' 38.544" W 06:30 hrs 01/18/2008 06:00 hrs 211/2008 KOP @ 325' MDlTVD Build 4.0 deg/100' from 487.1362' MD Hold 38.35 deg from 1362-2668' MD Drop 3.0 deg1100' to 3918' MD Hold 0 deg from 3918' to TD at 8448' MD Paxton #2 Ninilchik Unit 746' FNL, 2914' FEL Sec. 13, T1S, R14W, S.M. ~` L r Chemical Injection Nipple @ 2,397' MD String - 4.5", 12.6#, L-80, Hydril 563 Chemical Injection Nipple @2,397' MD (Top) 5.750" OD/3.895" ID Liner Packer with 6' Tieback Extension @ 3,667' MD (Top) Liner Hanger @ 3701' MD (Top) Joint Top @7987' MD (20' long) Joint Top @7012' MD (20' long) 4-112" CIBP @ 8,022' \~s- a cc 92008 a c Formation Tops: Formation Deoth (MDl Deoth (SSTVD) Beluga Tyonek TKT 3946' 3328 Tyonek T2 4896' 4278' Tyonek T3 6048' 5430' TD 8448' 8000' c c r R,~ TD: 8,436' MD 7,985' TVD PBTD: 8,273' MD 7,822' TVD • M MARATHON Conductor 20" K-55 133 ppf PE T~ BOKOm MD 0' 114 TVD 0' 114' Surface Casing 10.3/4" J-55 45.5 ppf BTC Tom Bottom MD 0' 1,617' TVD 0' 1,487' 13.1/2" hole with 457sks (202 bbls) 12 ppg Type 1 Cmt with 100 % returns and 40 bbls Cmt to surface. Intermediate Casing 7-518" L$0 29.7 ppf BTC Two Bottom MD 0' 3,902' TVD 0' 3,453' 9-718" hole with 265sks (99 bbls) 12.0 ppg Type 1 Lead Cmt & 1505k5 (31 bbls) 15.8 ppg Class G Cmt Tail. Slight interface returns to surface. Tie-backTubinc 4-112" L-BO 12.6 ppf Hydril 563 Ton Bottom MD 0' 3,667' TVD 0' 3,219' Production Liner 4.1/2" L-80 12.6 ppf Hydril 563 Tom Bottom MD 3,665' 8,385' TVD 3,237' 7,934' 6.3/4" hole Cmt wl 284 sks (210 bbls) 10.5 ppg Class G, 100 % Returns. 25 bbls cmt returns. Tvonek Perfs: MD TVD Ft 6,083' - 6,093' 5,634' - 5,644' 10' (Pert 9/4/08) 6,358' - 6,372' 5,908' - 5,922' 14' (Pert 9/3/08) 7,393' - 7,408' 6,942'- 6,957' 15' (Pert 5/7/08) 7,408'- 7,418' 6,942'- 6,967' 10' (Pert 5/8/OS) 7,536'- 7,574' 7,085'- 7,123' 38' (Pert 5/2108) 7,899' - 7,926' 7,448' - 7,475' 27' (Plugged) 7'940' - 7,949' 7,489' - 7,498' 9' (Plugged) 7,955'-7,970 7,504'-7,519' 15' (Plugged) 8,032'-8,052' 7,581'-7,601' 20' (Patched) 8,106' • 8,120' 7,655' - 7,669' 14' (Plugged) Well Name 8 Number: Paxton #2 Lease: Ninilchik Unit Count or Parish: Kenai Peninsula Borou h State/Prov: Alaska Count USA An le @KOP and Depth: 4 An le/Perfs: 0 KOP TVD): 325' Date Completed: Ground Level above MSL): 150' RKB (above GL : 21' Revised By: Mike Sulle Last Revision Date: 09/04108 ~~ ~* ~~ I 3 I ~ g 1 ~°~ ~ ~ ~ 4 S.~ S e;~0 ) ~ 4 s ii 71 gy CO1~S)~R~TIO C 1- II SIpH Ken D. Walsh Senior Production Engineer Marathon Oil Company PO Box 1949 Kenai AK 99611-1949 SARAH PALIN, GOVERNOR 333 W. 7th AVENUE, SUITE 100 ANCHORAGE, ALASKA 99501.3539 PHONE (907) 279-1433 FAX (907) 276-7542 Re: Ninilchik Unit, Tyonek Undefined Gas Pool, Paxton #2 Sundry Number: 308-303 Dear Enclosed is the approved Application for Sundry Approval relating to the above referenced well. Please note the conditions of approval set out in the enclosed form. When providing notice for a representative of the Commission to witness any required test, contact the Commission's petroleum field inspector at (907) 659-3607 (pager). As provided in AS 31.05.080, within 20 days after written notice of this decision, or such further time as the Commission grants for good cause shown, a person affected by it may file with the Commssion an application for rehearing. A request for rehearing is considered timely if it is received by 4:30 PM on the 23rd day following the date of this letter, or the next working day if the 23rd day falls on a holiday or weekend. A person may not appeal a Commission decision to Superior Court unless rehearing has been requested. Sincerely, Daniel T. Seamount, Jr. ,~ Chair DATED this?~day of August, 2008 Encl. ~~--try n M Marathon MARATHON Oil Company August 25, 2008 Mr. Tom Maunder Alaska Oil & Gas Conservation Commission 333 W 7th Ave Anchorage, Alaska 99501 Reference: 10-403 Application for Sundry Approvals Field: Ninilchik Unit Well: Paxton #2 Dear Mr. Maunder: • Marathon Oil Company Alaska Asset Team P.O. Box 1949 Kenai, AK 99611 Telephone 907/283-1371 Fax 907/283-1350 REC~,I~E® Au ~ 2 s zoos q{aska Oil & Gas Cons. Commission Anchorage Marathon requests permission to enhance gas production from PAX-2 well by adding perforations to the Tyonek formation. Plans are to add two sets of perforations totaling 24 feet. Marathon is proposing to place 10' of perforations across 6,083' - 6,093' MD and 14' of perforations across 6,358'-6,372' MD. Please contact me at (907) 283-1371 if you have any questions or need additional information. Sincerely, ...~iU7~ Kevin J. Skiba Engineering Technician Enclosures: 10-403 Application for Sundry Approvals Work Scope Procedure Current Well Schematic Proposed Well Schematic cc: AOGCC Houston Well File Kenai Well File KJS KDW rJ~%f ~~ • STATE OF ALASKA ~ VVV~" ~ ~ ALASKA OIL AND GAS CONSERVATION COMMISSIO~~ AUG 2 6 2008 ~. `~ ~ APPLICATION FOR SUNDRY APPROVpQ L$, l,~ ~' 20 AAC 25.ZSO -,~~s~+~~ (iii ~ Gas Cons. Commission QO 1. Type of Request: Abandon ^ Suspend ^ Operational shutdown ^ Perforate ^ ~~@ Other ^ Alter casing ^ Repair well ^ Plug Perforations ^ Stimulate ^ Time Extension ^ Change approved program ^ Pull Tubing ^ Perforate New Pool ^ Re-enter Suspended Well ^ 2. Operator Name: Marathon Oil Company 4. Current Well Class: 5. Permit to Drill Number: Development ^ Exploratory ^ 207-1640 3. Address: P.O. BOX 1949 Stratigraphic ^ Service ^ 6. API Number: Kenai, Alaska 99611-1949 50-133-20573-00-00 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 ~ Paxton #2 9. Property Designation: 10. KB Elevation (ft): 11. Field/Pool(s): ADL- 384372 171' (21' AGL) Ninilchik Unit / Tyonek Pool 12. PRESENT WELL CONDITION SUMMARY Total Depth MD (ft): Total Depth TVD (ft): Effective Depth MD (ft): . Effective Depth TVD (ft): Plugs (measured): Junk (measured): 8,436' MD 7,985' TVD 8,273' 7,822' 7,890' & 8,022' NA Casing Length Size MD TVD Burst Collapse Structural Conductor g3' 20" 114' 114' 3,060 psi 1,500 psi Surface 1,596' 10-3/4" 1,617' 1,487' 3,580 psi 2,090 psi Intermediate 3,881' 7-5/8" 3,902' 3,453' 6,890 psi 4,790 psi Production Liner 4,700' 4-1/2" 8,385' 7,934' 8,430 psi 7,500 psi Perforation Depth MD (ft): Perforation Depth TVD (ft): Tubing Size: Tubing Grade: Tubing MD (ft): 7393' - 8,120' 6942' - 7,669' 4-1 /2" L-80 3,667 Packers and SSSV Type: Packers and SSSV MD (ft): ZXP Liner Packer 3,667' 13. Attachments: Description Summary of Proposal ^ 14. Well Class after proposed work: Detailed Operations Program ~ BOP Sketch ^ Exploratory ^ Development ^~ Service ^ 15. Estimated Date for 16. Well Status after proposed work: Commencing Operations: 9/3/2008 Oil ^ Gas ^~ Plugged ^ Abandoned ^ 17. Verbal Approval: Date: WAG ^ GINJ ^ WINJ ^ WDSPL ^ Commission Representative: 18. I hereby certify that the foregoing is true and correct to the best of my knowledge. Contact Kevin Skiba (907) 283-1371 Printed Name Ken D. Walsh Title Senior Production Engineer Signature Phone Date , ~~ (907) 283-1311 August 25, 2008 COMMISSION USE ONLY Conditions of approval: Notify Commission so that a representative may witness Sundry Number: Plug Integrity ^ BOP Test ^ Mechanical Integrity Test ^ Location Clearance ^ Other: ~ ~i'('c~l'1~~ ~®~~ l V\ GCCCD(~ ~ l ~ A~~~~ .~ L~~ Subsequent Form Required: ~(® APPROVED BY ~O Z~/ Approved by: COMMISSIONER THE COMMISSION Date: Form 10-403 Revised 06/2606 ~ "y,., I j '~ ~ ~ v ~" ~~p ~ `.~ ZQQB Submit in Duplicate • 'M' ~aea~xox August 22, 2008 Marathon Oil Corporation Alaska Region Paxton #2 WBS# Requested Objective: Perforate the Tyonek T2 and T3 sands @ 6083'- 6093' (10' net), and 6358' - 6372' (14') net with 3-3/8" HSD guns loaded 6 SPF 60 degree-phased with SDP-3125- 311NT3 charges and PX-1 firing head. .API target performance is 0.36" entrance hole and 40.25"penetration. Max gun swell in air is 3.625" OD Current status: Well is flowing 3.432 MMscf/d @ 791 psi. and approximately 1 BWPD. Procedure: 1. MI diesel-fueled man-lift. No well house is currently on well head. MIRU Expro E- line service with full lubricator, pump-in sub, flow tubes, and pressure control equipment on 4-1/2" Otis Tree cap. Hold PJSM. Pressure test lubricator to 2000 psi with KCL water. RIH with 3.70" GR to 6400' MD. 2. Run correlation log (Short joint 6996'-7016'). 3. RIH w/ 14' of 3-3/8"HSD guns loaded 6 SPF 60 degree-phased with SDP-3125- 311NT3 charges and PX-1 firing head. Correlate Expro CBL/GR/CCL log depth to open-hole logs. Shut well in long enough to obtain 1300 psi. WHP prior to shooting. Pull up into position and shoot 6358'- 6372' (OH). POOH. 4. OOH. RD Expro. Return well to production. Flow test and evaluate over night. RU Expro. Pressure test lubricator to 2000 psi with KCL water. RIH w/ 10' of 3- 3/8" HSD guns loaded 6 SPF 60 degree-phased with SDP-3125-311NT3 charges and PX-1 firing head. Correlate Expro CBL/GR/CCL log depth to open-hole logs. Shut well in long enough to obtain 1300 psi. WHP prior to shooting. Pull up into position and shoot 6083'- 6093' (OH). POOH. Paxton #2 Add perfs 8/22/2008 1:53:17 PM 6. OOH. RD Expro. Return well to production. Flow test and evaluate. 7. Produce well to sales. CONTACTS Ken Walsh: 907-283-1311 (w) Scott Szalkowski: 713-296-3390 (w) 907-394-3060 (c) 713- 301-9834 (c) Lyndon Ibele: 907-565-3042 (w) Clyde Scott: 713-296-2336 (w) 907-748-2819 (c) Ninilchik Operators: 907-260-7660 or 907-567-3248 (Susan Dionne Pad) KGF Operators: 907-2831305 Paxton #2 Add perfs 8/22/2008 1:53:17 PM • Permit #: 207-1640 API #: 50-133-20573-00-00 Property Des: ADL 384372 KB elevation: 171' (21' AGL) WBS#: DD.07.16241.CAP Latitude: 60° 05' 43.394" N Longitude: 151 ° 36' 38.544" W X= 206,414,.356 (NAD27) Y= 2,230,614.114 (NAD27) Spud; 1/18!2008 06:30 hrs TD: 2/1/2008 06:00 hrs Paxton #2 Ninilchik Unit 746' FNL, 2914' FEL Sec. 13, T1S, R14W, S.M. ~ ~ L Chemical Injection Nipple @ 2,397' MD Tubing String - 4.5",12.6#, L-80, Hydril 563 Casing String - 4.5",12.6#, L-80, Hydril 563 Baker Chemical Injection Nipple (d~,397' MD (Top) 5.750" OD/3.895" ID ZXP Liner Packer with 6' Tieback Extension @ 3,667' MD (Top) Flex-Lock Liner Hanger @ 3701' MD (Top) Marker Joint Top @7987' MD (20' long) Marker Joint Top @7012' MD (20' long) @7,890' @ 8,022' Formation Tops: Formation Depth (MD) Depth (TVD) Beluga Tyonek TKT 3,946' 3,328' Tyonek T2 4,896' 4,278' Tyonek T3 6,048' 5,430' TD 8,448' 8,000' M MARATMOM conductor 20" K•55 133 ppf PE Too Bottom MD Surf 114 ND Surf 114' Surface Casing 10.314" J•55 45.5 ppf BTC TOO Bottom MD 0' 1,617' ND 0' 1,487' 13-112" hole with 457sks (202 bbls) 12 ppg Type 1 Cmt with 100% returns and 40 bbls Cmt to surface. Intermediate Casing 7-518" L-80 29.7 ppf BTC Mod TOp Bottom MD 0' 3,902' ND 0' 3,453' 9-718" hole with 265sks (99 bbls) 12.0 ppg Type 1 Lead Cmt 8 150sks (31 bbls) 15.8 ppg Class G Cmt Tail. Slight intertace returns to surface. Tie-backTubing 4-112" L-80 12.6 ppf Hydril 563 TOp Bottom MD 0' 3,667' ND 0' 3,219' Production Liner 4.112" L-80 12.6 ppf Hydril 563 Top Bottom MD 3,686' 8,385' ND 3,238' 7,934' 6-314" hole Cmt wl 284 sks (210 bhls) 10.5 ppg Class G, 100% Returns. 25 hbls cmt returns. MD TVD Ft Gun Tvpe Date 7,393' - 7,408' 6,942' - 6,957' 15' 3-318", 6spf, 60° phased (51812008) 7,408' - 7,418' 6,957' - 6,967' 10' 3.3/8", 6spf, 60° phased (5!712008) 7,536' - 7,574' 7,085' - 7,123' 38' 3-3/8", 6spf, 60° phased (5!212008) Tyonek Perfs isolated with Bridge Plugs 8 Casing Patches: 7,899'-7,926' 7,448'-7,475' 27' 3-318", 6spf,60°phased (4/2912008) 7,940' - 7,949' 7,489' - 7,501' 9' 3.3/8", 6spf, 60° phased (4/2912008) 7,955' - 7,970' 7,504' - 7,498' 15' 3-318", 6spf, 60° phased (4/2 512 0 0 8) 8,032' - 8,052' 7,581' - 7,601' (3!712008) 8,106' - 8,120' 7,655' - 7,669' 14' 3-318", 4spf (411512008) J .1 Casing Patch TD: 8,028'-8,054' 8,436' MD 7,985' TVD PBTD: 7,890' MD 7,439' TVD Well Name 8 Number: Paxton #2 Lease: Ninilchik Unit County or Parish: Kenai Peninsula Borough State/Prov: Alaska Country: USA Angle @KOP and Depth: 4° @ 478' Angle/Perfs: 0° KOP (ND): 325' Date Completed: Ground Level (above MSL): 150' RKB (above GL): 21' Prepared By: Kevin Skiba Last Revision Date: 06/05/08 50-133-20573-00-00 Property Des: ADL 384372 KB elevation: 171' (21' AGL) WBS #: DD.07.16241.CAP Latitude: 60° 05' 43.394" N Lonc x= Y= Spu( TD: Paxton #2 Ninilchik Unit Proposed 746' FNL, 2,914' FEL Sec. 13, T1S, R14W, S.M. M MARATNOM Conductor 20" K-55 133 ppf PE Too Bottom iical Injection MD Surf 114 ND Surf 114' 2,397' MD Surtace casino 10-314" J-55 45.5 ppf BTC Top Bottom MD 0' 1,617' TVD 0' 1,487' 13-112" hole wkh 457sks (202 bbls) 12 ppg Type 1 Cmt with 100% returns and 40 bbls Cmt to surface. Intermediate Casino 7-518" L•80 29.7 ppf BTC Mod Too Bottom MD 0' 3,802' ND 0' 3,453' 9.718" hole wkh 265sks (99 hbls) 12.0 ppg Type 1 Lead Cmt 8 150sks (31 bbls) 15.8 ppg Class G Cmt Tail. Sli ht intertace returns to surface. Tie-backTubina 4-112" L-80 12.6 ppf Hytlril 563 Tom! Bottom MD 0' 3,667' ND 0' 3,219' L ner 4.112" L-80 12.6 ppf Hydril 563 TOp Bottom MD 3,686' 8,385' ND 3,238' 7,934' 6.314" hole Cmt w/ 284 sks (210 bbls) 10.5 ppg Class G, 100% Returns. 25 hbls cmt returns. TVD Ft Gun Tvoe Date .,093' 5,634' - 5,644' 10' 1,372` 5,908' • 5,922° 14° erfs: TVD Ft Gun Type Date ',408' 6,942' - 6,957' 15' 3318", 6spf, 60° phased (518/2008) ',418' 6,957' - 6,967' 10' 3-3/8", 6spf, 60° phased (5/7/2008) ',574' 7,085' - 7,123' 38' 3.3/8", 6spf, 60° phased (5/2/2008) erfs isolated with Bridge Plugs 8 Casing Patches: ',926' 7,448' - 7,475' 27' 3-3/S", 6spf, 60° phased (4129/2008) ',949' 7,489' - 7,501' 9' 3-318", 6spf, 60° phased (412 912 0 0 8) ',970' 7,504' - 7,498' 15' 3.318", 6spf, 60° phased (4125!2008) 1,052' 7,581' - 7,601' (3/7/2008) 1,120' 7,655' - 7,669' 14' 3.3/8", 4spf (4/15/2008) Casing Patch 8,028'-8,054' Well Name & Number: Paxton #2 Lease: Ninilchik Unit County or Parish: Kenai Peninsula Borough State/Prov: Alaska Country: USA Angle @KOP and Depth: 4° @ 478' Angle/Perfs: 0° KOP (TVD): 325' Date Completed: Ground Level (above MSL): 150' RKB (above GL): 21' Prepared By: Mike Sulley Last Revision Date: 08/20/08 June 5, 2008 Mr. Tom Maunder Alaska Oil & Gas Conservation Commission 333 W 7th Ave Anchorage, Alaska 99501 Dear Mr. Maunder: M Marathon MARATHON Oil Company ~~~~ JUN 0 6 20Cl13 Alaska Oil & Gas Cons. Commission Anchorage Enclosed please find the attachments listed below for the Paxton #2 well. Well Completion or Recompletion Report and Log 10-407 Gas Well Open Flow Potential Test Report 10-421 Well Schematic Operations Summary Report Repeat Formation Test (Run 1, 2, &3) EPOCH Mud Log Binder with: Lithology Review Daily Drilling Activity Summary Directional Survey Daily Wellsit Reports EPOCH Formation Log MD EPOCH Formation Log TVD EPOCH Drilling Dynamics Log MD EPOCH Drilling Dynamics Log TVD Weatherford Open Hole Logs: Compact Quad Combo Quiklook Log MD Photo Density dual Spaced Neturon MD Array Induction Shallow Focussed TVD Array Induction Shallow Focussed MD Array Induction Vectar Processing MD Compensated Sonic MD Expro Cased Hole Log: Dual Radial Cement Bond Gamma Ray / CCL Log Electronic Files on CD: Directional Survey Logs in: LAS PDF DML Data Final Well Report Morning Reports M Marathon MARATHON Oil Company June 5, 2008 ~~ SUN ~ 6 ~OJ8 Alaska pr! & Gay Cons. Commission Anc~ro~age Mr. Tom Maunder Alaska Oil & Gas Conservation Commission 333 W 7th Ave Anchorage, Alaska 99501 Marathon Oil Company Alaska Asset Team P.O. Box 1949 Kenai, AK 99611 Telephone 907/283-1371 Fax 907/283-1350 Reference: Well Completion or Recompletion Report and Log 10-407 Field: Ninilchik Unit Well: Paxton #2 Dear Mr. Maunder: Enclosed please find the 10-407 Well Completion Report and Log for Ninilchik Unit well PAX #2. The well was completed into the Tyonek Pool. Gas production was initiated on May 2, 2008 with a present production rate of 3,800mcf at 775psi. Included with this correspondence is the new well documentation in both electronic and paper formats. The accompanying list details the documentation being provided for your records. Please call me at (907) 283-1371 if you have any questions or need additional information. Sincerely, r ` ~' .~~ Zrt/~ Kevin J. Skiba Engineering Technician Enclosures: 10-407 Well Completion Report cc: Houston Well File New Well Information Kenai Well File KJS CLR STATE OF ALASKA 6` ALA OIL AND GAS CONSERVATION COM~SION WELL COMPLETION OR RECOMPLETION REPORT AND LOG 1a. Well Status: Oil ^ Gas ~ , Plugged ^ Abandoned ^ Suspended ^ 20AAC 25.105 20AAC 25.110 GINJ^ WINJ ^ WDSPL^ WAG ^ Other^ No. of Completions: 1 1b. Well Class: Development Q - Exploratory ^ Service ^ Stratigraphic Test ^ 2. Operator Name: Marathon Oil Company 5. Date Comp., Sus"per., or Aband.: 3A®/2008 12. Permit to Drill Number: 207-1640 3. Address: PO Box 1949, Kenai Alaska, 99611-1949 6. Date Spudded: 1/18/2008 13. API Number: 50-133-20573-00-00 4a. Location of Well (Governmental Section): Surface: 746' FNL, 2,914' FEL, Sec. 13, T1S, R14W, S.M. 7. Date TD Reached: 2/1/2008 14. Well Name and Number: Paxton #2 - Top of Productive Horizon: 925' FSL, 2,562' FEL, Sec. 12, T1S, R14W, S.M. 8. KB (ft above MSL): .171' Ground (ft MSL): ~ 150' 15. Field/Pool(s): Total Depth: 950' FSL, 2,533' FEL, Sec. 12, T1 S, R14W, S.M. 9. Plug Back Depth(MD+TVD): 7,890' MD 7,439' TVD NinilChik Unit / TyOnek POOI 4b. Loca#ion of Well (State Base Plane Coordinates, NAD 27): Surface: x- 206,431 Y- 2,230,614 Zone- 4 10. Total Depth (MD + TVD): 8,436' MD 7,985' TVD 16. Property Designation: ADL- 384372 TPI: x- 206,763 Y- 2,232,112 Zone- 4 Total Depth: x- 206,763 Y- 2,232,112 Zone- 4 11. SSSV Depth (MD + TVD): NA 17. Land Use Permit: 18. Directional Survey: Yes ~ No (Submit electronic and printed information per 20 AAC 25.050) 19. Water Depth, if Offshore: NA (ft MSL) 20. Thickness of Permafrost (TVD): NA 21. Logs Obtained (List all logs here and submit electronic and printed information per 20 AAC 25.071): Quad Combo, CBL, RFT 22. CASING, L INER AND CEMENTING RECORD A ING WT. PER GRADE SETTING DEPTH MD SETTING DEPTH TVD HOLE SIZE CEMENTING RECORD AMOUNT C S FT TOP BOTTOM TOP BOTTOM PULLED 0 20" 133 K-55 Surf 114' Surf 114' Driven NA NA 10-3/4" 45.5 J-55 0' 1,617' 0' 1,487' 13-1/2" 457 sks, Type 1 90.5 sks 7-5/8" 29.7 L-80 0' 3,902' 0' 3,453' 9-7/8" 265 sks, Class G Trace 4-1 /2" 12.6 L-80 3,686' 8,385' 3,238' 7,934' 6-3/4" 284 sks, Class G 34 sks 0 ~';~~5 { 23. Open to production or injection? Yes Q No ^ If Yes, list each 24. TUBING RECORD L (~ L interval open (MD+TVD of Top & Bottom; Perforation Size and Number): SIZE DEPTH SET (MD) PACKER SET (MD) 4-1/2" 3,667' 3,667' MD TVD Gun Type 7,393' - 7,408' 6,942' - 6,957' 3-3/8", 6spf, 60° phased 25. ACID, FRACTURE, CEMENT SQUEEZE, ETC. 7,408' - 7,418' 6,957' - 6,967' 3-3/8", 6spf, 60° phased DEPTH INTERVAL (MD) AMOUNT AND KIND OF MATERIAL USED 7,536' - 7,574' 7,085' - 7,123' 3-3/8", 6spf, 60° phased 26. PRODUCTION TEST Date First Production: May 2, 2008 Method of Operation (Flowing, gas lift, etc.): Flowin Date of Test: May 8, 2008 Hours Tested: 24 Production for Test Period Oil-Bbl: 0 Gas-MCF: 3,967 Water-Bbl: 0.4 Choke Size: 48/64 Gas-Oil Ratio: 100% Gas Flow Tubing Press. 801 Casing Press: 30 Calculated 24-Hour Rate -- Oil-Bbl: 0 Gas-MCF: 3,967 Water-Bbl: 0.4 Oil Gravity -API (corr): NA 27. CORE DATA Conventional Core(s) Acquired? Yes ^ No^ Sidewall Cores Acquired? Yes ^ No Q 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. ,. CON?PLrTEJi~t~ S ~F~.. ~lf~V ~ ~ 1DOB 3-~T~l~ Form 10-407 Revised 2/2007 CONTINUED ON REVERSE 28. GEOLOGIC MARKERS (List all formations and m encountered): 29. FORMATION TESTS NAME MD TVD Well tested? ~ Yes ff yes, list intervals and formations tested, briefly summarizing test results. Attach separate sheets to this form, if needed, and submit detailed test information per 20 AAC 25.071. 3/3/08 Perforate 8032-8052'MD: Water moved into well; straddle packer set TKT 3,859' 3,409' over interval on 3/27/08. Tyonek T2 4,860' 4,410' Tyonek T3 5,944' 5,494' 4/16/08 Perforated 8106-8120'MD: No apparent change in pressure after Tyonek T4 7,984' 7,533' perforating. TD 8,436' 7,985' 4/26-30/08 Perforated 7955-7970'MD, 7940-7949'MD, and 7899-7926'MD: Water moved into well after perforating. CIBP set over interval on 5/3/08. 5/3/08 Perforated 7536-7574'MD: Well flowing at 3.5 MMcf/d @ 850# FTP on 5/4/08. 5/8-9/08 Perforated 7406-7416'MD and 7393-7408'MD: Well flowing at 4.45 MMcf/d at 850# FTP on 5/10/08. Formation at total depth: 30. List of Attachments: Well Schematic & Pa er & Electronic Formates of: Lo s, Directional Surve , Litholo 31. I hereby certify that the foregoing is true and correct to the best of my knowledge. Contact: Kevin Skiba (907) 283-1371 Printed Name: Craig L. Rang Title: Senior Completions Engineer ~. Signature: ' Phone: (907) 283-1372 Date: June 4, 2008 U ~ 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 a: Classification of Service wells: Gas Injection, Water Injection, Water-Alternating-Gas Injection, Salt Water Disposal, Water Supply for I njection, Observation, or Other. Multiple completion is defined as a well producing from more than one pool with production from each pool completely segregated. Each segregated pool is a completion. Rem 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). Rem 20: Report true vertical thickness of permafrost in Box 20. Provide MD and TVD for the top and base of permafrost in Box 28. Item 22: Attached supplemental records for this well should show the details of any multiple stage cementing and the location of the cementing tool. Item 23: R this well is completed for separate production from more than one interval (multiple completion), so state in item 1, and in item 23 show the producing intervals for only the interval reported in item 26. (Submit a separate form for each additional interval to be separately produced, showing the data pertinent to such interval). Item 26: Method of Operation: Flowing, Gas Lift, Rod Pump, Hydraulic Pump, Submersible, Water Injection, Gas Injection, Shut-in, or Other (explain). Item 27: Provide a listing of intervals cored and the corresponding formations, and a brief description in this box. Submit detailed description and analytical laboratory information required by 20 AAC 25.071. Item 29: Provide a listing of intervals tested and the corresponding formation, and a brief summary in this box. Submit detailed test and analytical laboratory information required by 20 AAC 25.071. Form 10-407 Revised 2/2007 w M Marathon MARATHON Oil Company ~' June 5, 2008 Alaska tail ~ Gas Cons. t;of~~rry~ssior~ AnEhorage Mr. Tom Maunder Alaska Oil & Gas Conservation Commission 333 W 7~' Ave Anchorage, Alaska 99501 Reference: 10-421 Open Flow Potential Test Report Field: Ninilchik Unit Well: Paxton #2 Dear Mr. Maunder: Marathon Oil Company Alaska Asset Team P.O. Box 1949 Kenai, AK 99611 Telephone 907/283-1371 Fax 907/283-1350 Enclosed is the 10-421 Open Flow Potential Test Report for PAX-2 well. PAX-2 is a new monobole well completed into the Tyonek formation. PAX-2 operates at line pressure restricting our ability to vary the rate or pressure of the well. Therefore, the information provided in this report was obtained from a one point flow test. Please contact me at (907) 283-1371 if you have any questions or require additional information. Sincerely, ` ~~ Kevin J. Skiba Engineering Technician Enclosures: 10-421 Open Flow Report cc: Houston Well File New Well Information Kenai Well File KJS CLR STATE OF ALASKA ALA OIL AND GAS CONSERVATION COM SION GAS WELL OPEN FLOW POTENTIAL TEST REPORT 1a. Test: ~ Initial Annual Special 1b. Type Test: Stabilized Non Stabilized Multipoint ^ Constant Time^ Isochronal ^ Other 2. Operator Name: 5. Date Completed: 11. Permit to Drill Number: Marathon Oil Company March 6, 2008 207-1640 3. Address: p.0. Box 1949 6. Date TD Reached: 12. API Number: Kenai, Alaska 99611-1949 February 1, 2008 50-133-20573-00-00 4a. Location of Well (Governmental Section): 7. KB Elevation (ft): 13. Well Name and Number: Surface: 746' FNL, 2,914' FEL, Sec. 13, T1 S, R14W, S.M. 171' Paxton #2 Top of Productive Horizon: 8. Plug Back Depth(MD+TVD): 14. Field/Pool(s): 925' FSL, 2,562 FEL, Sec. 12, T1 S, R14W, S.M. 7,890' MD 7,439' TVD Ninilchik Unit / Total Depth: 9. Total Depth (MD + TVD): Tyonek Pool 950' FSL, 2,533' FEL, Sec. 12, T1 S, R14W, S.M. 8,436' MD 7,985' TVD 4b. Location of Well (State Base Plane Coordinates): 10. Land Use Permit: 15. Property Designation: Surface: x- 206,431 Y- 2,230,614 Zone- 4 ADL- 384372 TPI: x- 206,763 Y- 2,232,112 Zone- 4 16. Type of Completion (Describe): Total Depth: x- 206,763 Y- 2,232,112 Zone- 4 Monobore, Single Completion 17. Casing Size Weight per foot, Ib. I.D. in inches Set at ft. 19. Perforations: From To 4-1 /2" 12.6 3.958" 8,385' MD Open Perfs 7,393' 7,408' 18. Tubing Size Weight per foot, Ib. I.D. in inches Set at ft. 7,408' 7,418' 4-1 /2" 12.6 3.958" 3,667' MD 7,536' 7,574' 20. Packer set at ft: 21. GOR cf/bbl: 22. API Liquid Hydrocardbons: 23. Specific Gravity Flowing Fluid (G): 3,667' MD - - 0.56 24a. Producing through: 24b. Reservoir Temp: 24c. Reservoir Pressure: 24d. Barometric Pressure (Pa): ^ Tubing ^ Casing 135.3 F° 937 psis @ Datum 7,439' TVDSS 14.65 psia 25. Length of Flow Channel (L): Vertical Depth (H): Gg: % COZ: % NZ: % HZS: Prover: Meter Run: Taps: 7,393' MD 6,942' TVD 0.56 0.291 0.891 0 Facility 26. FLOW DATA TUBING DATA CASING DATA Prover Choke pressure Diff. Temp. Pressure Temp. Pressure Temp. Duration of Flow No. Line X Orifice psig Hw F° psig F° psig F° Hr. Size (in.) Size (in.) 1 • 3.826 X 0.75 799 14 56.1 - - - - 4.00 2. X 3. )( 4. X 5. X Basic Coefficient ~ Pressure Flow Temp. F Gravity Factor Super Comp. Factor Rate of Flow No. (24-Hour) h Pm actor Fg O~ Mcfd Fb or Fp Ft Fpv 1. 158.7 28.0249888 813.65 1.00 1.336 1.1043 4,448 2. 3. 4. 5. No. Pr Temperature T Tr z for Separator Gas Gg for Flowing Fluid G 1. 1.21 460 1.34 0.82 0.56 NA 2. 3. Critical Pressure 673.1 4, Critical Temperature 343.2 5. i G w Form 10-421 Revised 1/2004 CONTINUED ON REVERSE SID ~~~,~ ~{~~~bfnit in Duplicate Pc 1,862 Pf No. Pt Ptz pc2_ptz Pw Pwz Pct-PwZ Ps Ps2 Pf -PsZ 1 • 818 668,682.4 2. 3. 4. 5. 25. AOF (Mcfd) 5,223 n 0.750 Remarks: SIWHP estimated from MFT pressure of 2,188 psi @ 7,572' MD I hereby certify that the foregoing is true and correct to the best of my knowledge. ~ ( b ./) Signed Title Senior Completions Engineer Date June 4, 2008 DEFINITIONS OF SYMBOLS AOF Absolute Open Flow Potential. Rate of Flow that would be obtained if the bottom hole pressure opposite the producing face were reduced to zero psia Fb Basic orifice factor Mcfd/ hwPm Fp Basic critical flow prover or positive choke factor Mcfd/psia Fg Specific gravity factor, dimensionless Fpv Super compressibility factor= /1 Z dimensionless Ft Flowing temperature factor, dimensionless G Specific gravity of flowing fluid (air=1.000), dimensionless Gg Specific gravity of separator gas (air=1.00), dimensionless GOR Gas-oil ratio, cu. ft. of gas (14.65 psia and 60 degrees F) per barrel oil (60 degrees F) hw Meter differential pressure, inches of water H Vertical depth corresponding to L, feet (TVD) L Length of flow channel, feet (MD) n Exponent (slope) of back-pressure equation, dimensionless Pa Field barometric pressure, psia Pc Shut-in wellhead pressure, psia Pf Shut-in pressure at vertical depth H, psia Pm Static pressure at point of gas measurement, psia Pr Reduced pressure, dimensionless Ps Flowing pressure at vertical depth H, psia Pt Flowing wellhead pressure, psia Pw Static column wellhead pressure corresponding to Pt, psia Q Rate of flow, Mcfd (14.65 psia and 60 degrees F) Tr Reduced temperature, dimensionless T Absolute temperature, degrees Rankin Z Compressibility factor, dimensionless Recommended procedures for tests and calculations may be found in the Manual of Back- Pressure Testing of Gas Wells, Interstate Oil Compact Commission, Oklahoma City, Oklahoma. Form 10-421 Revised 1/2004 Side 2 • 50-133-20573-00-00 Des: ADL 384372 vation: 171' (21' AGL) DD.07.16241.CAP le: 60° 05' 43.394" N ude: 151 ° 36' 38.544" W 206,414,.356 (NAD27) 2,230,614.114 (NAD27) 1/18/2008 06:30 hrs 2/1/2008 06:00 hrs leased: 2/15/2008 18:OOh rs KOP @ 325' MDlTVD Build 4.0 deg1100' from 487-1362' MD Hold 38.35 deg from 1362-2668' MD Drop 3.0 deg1100'to 3918' MD Hold 0 deg from 3918' to TD at 8448' MD Paxton #2 Ninilchik Unit 746' FNL, 2914' FEL Sec. 13, T1S, R14W, S.M. ~ L Chemical Injection Nipple (~ 2,397' MD ~r Chemical Injection Nipple @2,397' MD (Top) 5.750" .895" ID Liner Packer with 6' Tieback Extension @ 3,667' MD (Top) •Lock Liner Hanger @ 3701' MD (Top) car Joint Top @7987' MD (20' long) car Joint Top @7012' MD (20' long) @7,890' @ 8,022' Expro Radial Bond Log - 02/192008 Formation Tops: Formation Deoth (MD) Deoth (TVD/ Beluga Tyonek TKT 3,946' 3,328' Tyonek T2 4,896' 4,278' Tyonek T3 6,048' 5,430' TD 8,448' 8,000' TD: 8,436' MD 7,985' TVD PBTD: 7,890' MD 7,439' TVD Well Name 8 Number: Paxton #2 Lease: Ninilchik Unit Count or Parish: Kenai Peninsula Borough State/Prov: Alaska Count USA An le KOP and Depth: 4° @ 478' An le/Perfs: 0° KOP TVD : 325' Date Completed: Ground Level (above MSL : 150' RKB above GL : 21' Prepared B : Kevin Skiba Last Revision Date: 06105108 M MARATIIOM Conductor 20" K-55 133 ppf PE Too otto MD Surf 114 TVD Surf 114' Surface Casino 10.314" J-55 45,5 ppf BTC iqp Bottom MD 0' 7,817' TVD 0' 1,487' 13.112" hole wkh 457sks (202 bbls)12 ppg Type 1 Cnrt wkh 100% returns and 40 bbla Cmt to surface. Irdem~adiate Casino 7.518" L-80 29.7 ppf BTC Mod =qp o m MD 0' 3,902' TVD 0' 3,453' 9.718" hole wkh 285aks (99 bbls) 12.0 ppg Type 1 Lead Cmt 8 150ska (31 bbls)15.8 ppg Claaa G Cmt Tall. Slight interface retums to aurtace. Tie-backTubinc M112" L-80 12.8 ppf Hydr11583 jpg o 0 MD 0' 3,897' TVD 0' 3,219' Production Liner 4.112" L-80 12.8 ppf Hydri1583 om MD 3,888' 8,385' TVD 3,238' 7,934' 8-314" hole Cmt w1284 sks (210 bbla) 10.5 ppg Class G, 100%Retuma. 25 bbla cmt retums. Tyonek Perfs: MD TVD Ft n T e Date 7,393' - 7,408' 6,942' • 6,957' 15' 3-3/8", 6spf, 60° phased (5/8/2008) 7,408' - 7,418' 6,957' • 6,967' 10' 3-3/8", 6spf, 60° phased (817/2008) 7,536' - 7,574' 7,085' - 7,123' 38' 3-3/8", 6spf, 60° phased (5/2/2008) Tvonak Perfs Iso lated with Bridge Plugs & Casing Patches: 7,899' • 7,926' 7,448' • 7,475' 27' 3-3/8", 6spf, 60° phased (4/29/2008) 7,940' - 7,949' 7,489' • 7,501' 9' 3-3/8", 6spf, 60° phased (4/29/2008) 7,955' - 7,970' 7,504' - 7,498' 15' 3.3/8", 6spf, 60° phased (4125/2008) 8,032' - 8,052' 7,581' - 7,601' (3!7/2008) 8,106' - 8,120' 7,655' - 7,669' 14' 3.318", 4spf (4/15/2008) Casinst Patch 8,028'-8,054' • • Marathon PAXTON #2 (RUN 1) FORMATION TESTER TEST SUMMARY Test No. De th TVD Hyd Pres Before Hyd Pres After Volume Tool Flow Rate Drawdown Press Final Shut- in Press Perm eab Remarks 1 7632.00 7181:32 3566.00 3567:00 5.0 0.5cc/s 3200..00 GOOD 1 7632:00 ` 7181:32 3566.00 3567.00 5.0 0.5cc/s 3200.00 GOOD 2 7628.00. 7177.32 3564.00 3563.00. 5.0 0.5cc/s 3210.00 GOOD 2 .7628.00 7177.32 3564.00 3563.00 3.0 0.5cc/s 3210.00 GOOD 3 7572:00 7121.37 3529.00 ' 3532.00 5.0 0.5cc/s 2188A0 GOOD 3 7572.00 7121.37. 3529.00 .3532.00 5.0 0.5cc/s 2188A0 GOOD 4 7555.00 7104.38 3520.00 3522.00 5.0 0.5cc/s 21.67.00 GOOD 4 7555.00 7104.38 3520.00 3522.00. 5.0 0.5cc/s 2167.00 GOOD 5 7539.00 7088.39 3513.00 3514.00 5.0 0:5cc/s 2167.00 GOOD 5 7539.00 7088.39 3513.00 3514.00 5.0 0.5cc/s 2167.00 GOOD 6 7415.00 6964.48 3450.00 NO SEAL 7 7416.00 6965.48 3453.00 NO SEAL 8 7417.00 6966.48 3454.00 3454.00 5.0 0.5cc/s NO SEAL 9 7420.00 6969.48 3456.00 3456.00 5.0 0.5cc/s 1460.00 GOOD 9 7420.00 6969.48 3456.00 3456.00 5.0 0:5cc/s 1464.00 GOOD 10 .7405:00 6954.49 3447.00 3442:00 5.0 0.5cc/s 1496.00 GOOD " 10 7405.00 6954:49 3447.00 3447:00 5:0 0.5cc/s 4496.00 GOOD 11 7399.00 6948.49 3443.00 3444.00 5.0 0.5cc/s - LOST SEAL 12 7399.00 6948.49 3445.00 3444.00 5.0 0.5cc/s - LOST SEAL 13 7398.00 6947.49 3445.00 3445.00 5.0 0.5cc/s - LOST SEAL 14 7397.00 3444.00 3444.00 5.0 0.5cc/s - NO SEAL 15 7395.00 3443.00 3443.00 5.0 0.5cc/s - LOST SEAL 16 7393.00 6942.50 3442.00 3442.00 5.0 0.5cds - LOST SEAL 17 7393.00 6942.50 3442.00 3442.00. 5.0 0.5cc/s - LOST SEAL 18 7391:00 3441.00 3439.00. 5.0 0.5cc/s 3164.00 GOOD. 18 7391.00 3441.00 3439.00 5.0 0.5cc/s 3164.00 GOOD 19 7364.00 3424.00 3425.00 - NO SEAL 20 7386.00 3437.00 3438.00 5.0 0.5cc/s 1531.00 GOOD 20 386.00 3437.00 3438.00 5.0 0.5cc/s 1506.00 GOOD 21 7131.00 6680.58 3313.00 3311.00 5.0 0.5cc/s 3189,00 GOOD 21 7131.00 6680.58 3313.00 .3311.00 5.0 0.5cc/s 3189.00 GOOD 22 7126.00 6675.63. 3308.00 3307.00 5.0 0.5cc/s 3188.00 GOOD 23 7121.00 6670.68 3303.00 3301.00 - NO SEAL 24 7114:00 3300.00 3301.00 5.0 0.5cGs' 1465.00 GOOD 24 7114:00 3300.00< 3301'.00 5.0 0.5cc/s 1454.00 ,GOOD 25 6911.00 6460.91 3199.00 3198.00 5.0 0.5cc/s 1375.00. GOOD 25 911.00 6460.91 3199.0 319 .0 5.0 0.5c s 1 8 0 ~ ~ Marathon PAXTON #2 (RUN 2) FORMATION TESTER TEST SUMMARY Test No. De th TVD Hyd Pres Before Hyd Pres After Volume Tool Flow Rate Drawdown Press Final Shut- in Press Perm eab Remarks 26 8126.00 7674.91 3830.00 NO SEAL 27 8130.00 3830.00 3831.00 5.0 0.5cc/s 3580.00 GOOD 27 8130.00 3830.00. 3831..00 5,0 0.5cc/s 3578.00 GOOD 28 8119.00 7667.91 3825.00 3826.00 5.0 0.5cc/s 3406.00 GOOD 28 8119.00 3825.00 3826.00 5.0 0.5cc/s 3406.00 GOOD 29' 8111.00 7659.92 381.9.00 3820.00 5.0 0.5cc/s 3400.00 GOOD 29 8111.00 7659.92 3819.00 $820.00 5.0 0.5cc/s 3400.00 GOOD 30 8049.00 7597.97 3788.00 3788.00 5.0 0.5cc/s 47.00 TIGHT 31 8045.00 3785.00 .3786.00 5.0 0.5cc/s 53.00 TIGHT 32 8043.00 3785.00 3785.00 5.0 0.5cc/s 3392.00 GOOD 32 8043.00 3785.00 3785.00 5.0 0.5cc/s 3393.00 GOOD 33 8039.00 7587.98 3783.00 NO SEAL 34 8039.00 7587.98 3783.00 NO SEAL 35 8038.00 3783.00 3783.00 5.0 0.5cc/s 3391.00 GOOD 35 8038.00 3783.00 3783.00 5.0 0.5cc/s 3391..00 GOOD 36 8030.00 7578.99 3778.00 3778.00 5.0 0.5cc/s 3436.00 GOOD 36 8030.00 7578.99 3778.00 3778.00 10.0 1.Occ/s 3432.00 GOOD 37 8017.00 7566.00 3771.00 NO SEAL 38 8016.00 3770.00 3771.00 5.0 0.5cc/s 3394.00 GOOD 38 8016.00 3770.00 377.1.00` 10.0 1.Occ/s 3391.00 GOOD 39 7973.00 7522.04 3748.00 NO SEAL 40" 7972.00 3747.00 3747.00 5.0 0.5cds 3383.00 GOOD 40 7972.00 3747.00 3747.00 . 10.0 1.Occ/s 3375.00 GOOD 41 7958.00 7507.05 ' 3740.00 NO SEAL 42 7960.00 3741.00 3743.00 5.0 0.5cc/s 3394.00 GOOD 42 7960.00 3741.00 3743.00 10.0 _ 1.Occ/s '3391.00 GOOD 43 7948.00 7497.06 3735.00 3736.00 5.0 0.5cc/s FAILED SEAL 44 7948.00 7497.06 3735.00 3736.00 10.0 1.Occ/s FAILED SEAL 45 7945.00 3734.00 NO SEAL 46 7944.00. 3734.00 3735.00 5-0 0.5cds 3425.00 GOOD 46 7944.00 ' 3734.00 3735.00 10.0 1.Occ/s 3420.00 GOOD. 47 7918.00 7467.08 3719.00 NO SEAL 48 7915.00 3718.00. 3719.00 5.0 0.5cc/s 3494.00 GOOD 48 7915.00 3718.00 3719.00. 10.0.. 1.Occ/s 3488.00 GOOD 49 7905.00 7454.09 3715.00 NO SEAL 50 7907.00 3715.00 NO SEAL 51 7908.00 3716.00 NO SEAL 52 7910.00 3718.00 3719.00 5.0 0.5cc/s 3360.00 GOOD 53 7905.00 7454.09. 3715.00 NO SEAL 54 7903.00 3712.00 NO SEAL • Marathon PAXTON #2 (RUN3) FORMATION TESTER TEST SUMMARY 55 5736.00 5286.69 2648.00 2648.00 5.0 0.5cc/s 2635.00 ?GOOD ? 56 5741.00 2650.00 2650.00 5.0 0.5cc/s 2550.00 GOOD 57 5736.50 2647.00 2647.00 NO SEAL 58 5726.00 5276.69 2641.00 2641.00 5.0 0.5cc/s 2630.00 GOOD 58 5726.00 5276.69 2641.00 2641.00 10.0 1.Occ/s 2626.00 GOOD 59 5721.00 2638.00 2636.00 5.0 0.5cc/s NO SEAL 60 4938.00 4488.77 2246.00 2246.00 5.0 0.5cc/s 2219.00 GOOD 61 4932.00 2243.00 2243.00 5.0 0.5cc/s 9.00 TIGHT 62 4932.00 2243.00 2243.00 5.0 0.5cc/s 11.00 TIGHT 63 4604.00: 4154.80 2078.00 2080.00 5.0 0.5cc/s 1931.00 GOOD 63 4604.00 4154.80 2078.00 2080.00 10.0 1.Occ/s 1929.00 GOOD 64 4594.00 4144.80 2074.00 2073.00 5.0 0.5cc/s 1909.00 GOOD 65 4335.00 3885.81 1948.00 1.945.00 5.0 0.5cc/s _ 1711.00 GOOD 66 4335.00 3885.81 1948.00 1945.00 10.0 1.Occ/s 1709.00 GOOD 67 4316.00 3866.81 1935.00 1935.00 NO SEAL 68 4315.00 1935.00 1936.00 5.0 0.5cc/s 1663.00 GOOD 69 4275.00 3825.82 1914.00 NO SEAL 70 4277.00 1918.00 1917.00 5.0 0.5cc/s 1605.00 GOOD 70 4277.00 1916.00 1917.00. 10.0 1.Occ/s 1605.00 GOOD 71 4260.00 3810.82 1907.00 1908.00 5.0 0.5cc/s 1599.00 GOOD 72 4186.00 .3736.82 1873.00 NO SEAL 73 4187.00 1872.00 1871,00 5.0 0.5cc/s 1504.00 GOOD: 73 4187.00 1872.00 1871..00 10.0' 1.Ocds 1504:00 GOOD 74 4178.00 3728.82 1867.00 NO SEAL 75 4178.00 3728.82 1867.00 1868.00 5.0 0.5cc/s 1503.00 GOOD 76 4145.00 3695.82 1849.00 1850.00 NO SEAL 77 4145.00 3695.82 1849.00 1850.00 NO SEAL 78 4145.00 3695.82 1850.00 1850.00 5.0 0.5cc/s BAD SEAL 79 4144.00 1849.00 1850.00 5.0 0.5cc/s 1506.00 GOOD 80 4144.00 1849.00 1850.00 10.0 • 1.Occ/s 1507.00 GOOD 81 4141.00 3691.82 1849.00 1849.00 5.0 0.5cc/s 1508.00 GOOD 82 4100.00 3650.83 1826:00 1828.00 5.0 0.5cc/s 1519.00 GOOD 83 4099.00 .1827.00 1827.00 5.0 0.5cc/s 1530.00. GOOD 84 4093.00 3643.83 1824.00 NO SEAL 85 4094.00 1825.00 1825.00 5.0 0.5cc/s 1525.00 GOOD 86 4069.00 3619.83 1812.00 1812.00 5.0 0.5cc/s 1590.00 GOOD 87 4063.00 3613.83 1808.00 NO SEAL 88 4064.00 1809.00 1807.00 5.0 0.5cc/s 1599.00 GOOD r~,iA~ Company: Marathon Job Number: 1712889 BAKER Field: Ninilchik Field,Alaska Magnetic Decl.: 18.71 iMU~NES Borough Cook Inlet Grid Corr.: n/a iv7~F;Q Well Name: Paxton#2 Total Survey Corr.: 19° Ria: Glacier#1 Target Info: Calculation Method: Proposed Azimuth: Depth Reference: Tie Into: Surface Minimum Curvature 11.7° RKB No. Tooi Type Survey Depth (ft Incl ° Azimuth ° Course L th ft TVD ft VS ft Coordinates N/S ft E/W ft Closure Dist ft An ° DLS °/100' Build Rate °/100' Walk Rate (°/100' Tool Face 1 Tie in 0 0.00 0.00 0 0.00 2 MWD 170 0.30 230.27 170 170.00 0.28 S 0.34 W 0.45 0.18 0.18 135.45 3 MWD 249 0.71 255.87 79 249.00 -0.72 0.54 S 0.98 W 1.11 241.22 0.58 0.52 32.41 4 MWD 309 0.44 216.36 60 308.99 -1.09 0.81 S 1.47 W 1.68 241.12 0.77 -0.45 -65.85 143 L 5 MWD 368 1.53 81.45 59 367.99 -1.03 0.88 S 0.83 W 1.21 223.34 3.16 1.85 -228.66 145 L 6 MWD 428 4.33 75.76 60 427.90 0.24 0.20 S 2.16 E 2.17 95.33 4.69 4.67 -9.48 9 L 7 MWD 487 6.73 68.51 59 486.62 3.11 1.61 N 7.54 E 7.71 77.92 4.23 4.07 -12.29 8 MWD 548 8.19 59.56 61 547.11 7.98 5.12 N 14.61 E 15.48 70.67 3.05 2.39 -14.67 43 L 9 MWD 608 9.87 49.93 60 606.37 14.89 10.60 N 22.23 E 24.63 64.51 3.76 2.80 -16.05 47 L 10 MWD 668 11.83 39.29 60 665.30 24.38 18.67 N 30.06 E 35.39 58.15 4.66 3.27 -17.73 51 L 11 MWD 727 14.43 30.41 59 722.76 36.71 29.70 N 37.61 E 47.92 51.71 5.57 4.41 -15.05 42 L 12 MWD 787 16.94 22.38 60 780.52 52.38 44.23 N 44.73 E 62.90 45.32 5.52 4.18 -13.38 45 L 13 MWD 851 19.31 17.98 64 841.35 72.07 62.92 N 51.55 E 81.34 39.33 4.27 3.70 -6.88 32 L 14 MWD 914 21.40 15.62 63 900.41 93.89 83.90 N 57.86 E 101.91 34.59 3.56 3.32 -3.75 23 L 15 MWD 977 24.12 13.83 63 958.50 118.22 107.47 N 64.03 E 125.10 30.79 4.45 4.32 -2.84 0 L 16 MWD 1040 26.63 13.84 63 1015.42 145.20 133.69 N 70.49 E 151.13 27.80 3.98 3.98 0.02 0 R 17 MWD 1103 29.47 13.03 63 1071.01 174.81 162.50 N 77.36 E 179.97 25.46 4.55 4.51 -1.29 8 L 18 MWD 1167 32.91 11.58 64 1125.75 207.95 194.88 N 84.40 E 212.37 23.42 5.50 5.38 -2.27 13 L 19 MWD 1230 35.09 10.73 63 1177.98 243.17 229.44 N 91.21 E 246.91 21.68 3.54 3.46 -1.35. 13 L 20 MWD 1293 37.30 10.18 63 1228.82 280.36 266.03 N 97.95 E 283.49 20.21 3.55 3.51 -0.87 9 L 21 MWD 1357 37.37 10.54 64 1279.70 319.17 304.21 N 104.93 E 321.80 19.03 0.36 0.11 0.56 72 R 22 MWD 1420 37.67 10.92 63 1329.67 357.53 341.91 N 112.08 E 359.81 18.15 0.60 0.48 0.60 38 R 23 MWD 1483 36.86 9.30 63 1379.81 395.66 379.46 N 118.78 E 397.61 17.38 2.02 -1.29 -2.57 130 L 24 MWD 1547 36.66 8.80 64 1431.09 433.92 417.28 N 124.80 E 435.54 16.65 0.56 -0.31 -0.78 124 L 25 MWD 1575 36.64 8.11 28 1453.55 450.61 433.81 N 127.26 E 452.09 16.35 1.47 -0.07 -2.46 93 L 26 MWD 1648 37.00 7.99 73 1511.99 494.27 477.13 N 133.39 E 495.42 15.62 0.50 0.49 -0.16 11 L 27 MWD 1710 36.84 8.38 62 1561.56 531.44 513.99 N 138.69 E 532.38 15.10 0.46 -0.26 0.63 124 R 28 MWD 1773 37.54 9.04 63 1611.74 569.47 551.63 N 144.46 E 570.24 14.67 1.28 1.11 1.05 30 R 29 MWD 1836 37.72 9.22 63 1661.64 607.89 589.61 N 150.56 E 608.53 14.32 0.33 0.29 0.29 31 R 30 MWD 1899 37.60 9.57 63 1711.51 646.35 627.59 N 156.84 E 646.89 14.03 0.39 -0.19 0.56 119 R 31 MWD 1963 37.63 10.11 64 1762.21 685.40 666.07 N 163.52 E 685.85 13.79 0.52 0.05 0.84 85 R 32 MWD 2025 37.39 10.16 62 1811.39 723.13 703.24 N 170.16 E 723.53 13.60 0.39 -0.39 0.08 173 R • 1 of 80 ~/~,~ Company: Marathon Job. Number: 1712869 BAKER Field: Ninilchik Field,Alaska Magnetic Decl.: 18.71 HUGHES Borough Cook Inlet Grid Corr.: n/a ~ N~rH'Q Well Name: Paxton#2 Total Survey Corr.: 19° Rig: Glacier#1 Target Info: Calculation Method: Proposed Azimuth: Depth Reference: Tie Into: Surface Minimum Curvature 11.7° RKB No. Tooi Type Survey Depth (ft) Incl ° Azimuth ° Course L th ft TVD ft VS ft Coord N/S ft inates ENV ft Closure Dist ft An ° DLS °/100' Build Rate °/100' Walk Rate °/100' Tool Face 33 MWD 2088 37.27 10.12 63 1861.48 761.32 740.84 N 176.89 E 761.67 13.43 0.19 -0.19 -0.06 169 L 34 MWD 2152 38.16 10.13 64 1912.11 800.46 779.39 N 183.77 E 800.76 13.27 1.39 1.39 0.02 0 R 35 MWD 2214 38.19 9.48 62 1960.85 838.76 817.15 N 190.30 E 839.01 13.11 0.65 0.05 -1.05 86 L 36 MWD 2278 38..13 9.83 64 2011.17 878.27 856.13 N 196.93 E 878.49 12.95 0.35 -0.09 0.55 106 R 37 MWD 2341 38.70 9.90 63 2060.54 917.40 894.69 N 203.64 E 917.58 12.82 0.91 0.90 0.11 4 R 38 MWD 2404 38.47 9.59 63 2109.78 956.67 933.42 N 210.29 E 956.81 12.70 0.48 -0.37 -0.49 140 L 39 MWD 2467 38.31 9.88 63 2159.16 995.77 971.98 N 216.90 E 995.89 12.58 0.38 -0.25 0.46 132 R 40 MWD 2530 38.15 10.14 63 2208.65 1034.74 1010.37 N 223.68 E 1034.83 12.48 0.36 -0.25 0.41 135 R 41 MWD 2593 37.86 10.07 63 2258.29 1073.51 1048.56 N 230.48 E 1073.59 12.40 0.47 -0.46 -0.11 172 L 42 MWD 2656 37.69 9.72 63 2308.09 1112.09 1086.58 N 237.12 E 1112.15 12.31 0.43 -0.27 -0.56 129 L 43 MWD 2719 36.62 10.59 63 2358.30 1150.12 1124.03 N 243.82 E 1150.17 12.24 1.89 -1.70 1.38 154 R 44 MWD 2783 34.77 10.33 64 2410.27 1187.45 1160.75 N 250.60 E 1187.49 12.18 2.90 -2.89 -0.41 175 L 45 MWD 2846 33.62 10.59 63 2462.38 1222.85 1195.57 N 257.03 E 1222.88 12.13 1.84 -1.83 0.41 173 R 46 MWD 2909 32.30 10.05 63 2515.24 1257.11 1229.29 N 263.17 E 1257.14 12.08 2.15 -2.10 -0.86 168 L 47 MWD 2972 30.72 10.47 63 2568.95 1290.03 1261.69 N 269.03 E 1290.05 12.04 2.53 -2.51 0.67 172 R 48 MWD 3035 28.78 11.55 63 2623.64 1321.29 1292.37 N 275.00 E 1321.31 12.01 3.19 -3.08 1.71 165 R 49 MWD 3099 27.01 11.36 64 2680.21 1351.23 1321.72 N 280.94 E 1351.25 12.00 2.77 -2.77 -0.30 177 L 50 MWD 3162 25.29 11.27 63 2736.75 1378.99 1348.94 N 286.39 E 1379.01 11.99 2.73 -2.73 -0.14 179 L 51 MWD 3225 23.19 10.23 63 2794.20 1404.85 1374.35 N 291.22 E 1404.87 11.96 3.40 -3.33 -1.65 169 L 52 MWD 3288 20.72 11.02 63 2852.62 1428.40 1397.50 N 295.56 E 1428.41 11.94 3.95 -3.92 1.25 174 R 53 MWD 3352 18.74 11.24 64 2912.86 1450.00 1418.70 N 299.73 E 1450.01 11.93 3.10 -3.09 0.34 178 R 54 MWD 3415 16.71 9.76 63 2972.87 1469.18 1437.55 N 303.24 E 1469.19 11.91 3.30 -3.22 -2.35 168 L 55 MWD 3476 14.96 8.77 61 3031.55 1485.80 1453.98 N 305.92 E 1485.81 11.88 2.90 -2.87 -1.62 172 L 56 MWD 3540 12.45 8.37 64 3093.73 1500.94 1468.97 N 308.19 E 1500.95 11.85 3.92 -3.92 -0.63 178 L 57 MWD 3603 10.18 7.41 63 3155.50 1513.28 1481.21 N 309.89 E 1513.28 11.82 3.62 -3.60 -1.52 176 L 58 MWD 3666 8.24 11.64 63 3217.68 1523.34 1491.15 N 311.52 E 1523.35 11.80 3.26 -3.08 6.71 163 R 59 MWD 3730 6.16 14.80 64 3281.18 1531.36 1498.97 N 313.33 E 1531.36 11.81 3.31 -3.25 4.94 171 R 60 MWD 3793 3.82 16.26 63 3343.93 1536.83 1504.25 N 314.78 E 1536.83 11.82 3.72 -3.71 2.32 178 R 61 MWD 3867 1.51 12.48 74 3417.85 1540.26 1507.57 N 315.68 E 1540.26 11.83 3.13 -3.12 -5.11 178 L 62 MWD 3964 0.45 36.65 97 3514.83 1541.88 1509.12 N 316.18 E 1541.89 11.83 1.15 -1.09 24.92 170 R 63 MWD 4026 0.50 39.62 62 3576.83 1542.34 1509.53 N 316.50 E 1542.35 11.84 0.09 0.08 4.79 28 R 64 MWD 4090 0.55 41.36 64 3640.83 1542.86 1509.97 N 316.88 E 1542.86 11.85 0.08 0.08 2.72 19 R 65 MWD 4153 0.55 36.10 63 3703.82 1543.40 1510.44 N 317.26 E 1543.40 11.86 0.08 0.00 -8.35 93 L • 2 of 80 /GMT Company: Marathon Job Number: 1712869 Calculation Method: BAKER Field: Ninilchik Field,Alaska Magnetic Decl.: 18.71 Proposed Azimuth: HUGHES Borough Cook Inlet Grid Corr.: n/a Depth Reference: tN t ~'~ Well Name: Paxton#2 Total Survey Corr.: 19° Tie Into: Surface Rig: Glacier#1 Target Info: Minimum Curvature 11.7° RKB No. Tooi Type Survey Depth (ft) Incl (°) Azimuth °) Course L th ft TVD ft VS ft Coord N/S ft inates E/W ft Closure Dist ft An (° DLS °/100' Build Rate °/100' Walk Rate °/100' Tool Face 66 MWD 4216 0.59 31.05 63 3766.82 1543.98 1510.96 N 317.60 E 1543.98 11.87 0.10 0.06 -8.02 54 L 67 MWD 4279 0.54 20.43 63 3829.82 1544.58 1511.52 N 317.87 E 1544.58 11.88 0.18 -0.08 -16.86 121 L 68 MWD 4342 0.56 26.00 63 3892.81 1545.17 1512.08 N 318.11 E 1545.18 11.88 0.09 0.03 8.84 72 R 69 MWD 4405 0.63 25.20 63 3955.81 1545.80 1512.67 N 318.40 E 1545.81 11.89 0.11 0.11 -1.27 7 L 70 MWD 4468 0.63 25.21 63 4018.81 1546.48 1513.29 N 318.69 E 1546.49 11.89 0.00 0.00 0.02 90 R 71 MWD 4531 0.71 16.20 63 4081.80 1547.20 1513.98 N 318.95 E 1547.21 11.90 0.21 0.13 -14.30 57 L 72 MWD 4594 0.80 8.48 63 4144.80 1548.03 1514.79 N 319.12 E 1548.04 11.90 0.22 0.14 -12.25 52 L 73 MWD 4657 0.74 8.04 63 4207.79 1548.88 1515.63 N 319.24 E 1548.88 11.89 0.10 -0.10 -0.70 175 L 74 MWD 4719 0.71 1.78 62 4269.79 1549.65 1516.41 N 319.31 E 1549.66 11.89 0.14 -0.05 -10.10 114 L 75 MWD 4783 0.89 7.45 64 4333.78 1550.54 1517.30 N 319.39 E 1550.55 11.89 0.31 0.28 8.86 27 R 76 MWD 4846 0.67 7.61 63 4396.78 1551.40 1518.15 N 319.50 E 1551.40 11.88 0.35 -0.35 0.25 180 R 77 MWD 4909 0.74 7.60 63 4459.77 1552.17 1518.92 N 319.60 E 1552.18 11.88 0.11 0.11 -0.02 0 L 78 MWD 4972 0.73 8.78 63 4522.77 1552.98 1519.72 N 319.72 E 1552.98 11.88 0.03 -0.02 1.87 124 R 79 MWD 5035 0.72 7.53 63 4585.76 1553.77 1520.51 N 319.83 E 1553.78 11.88 0.03 -0.02 -1.98 123 L 80 MWD 5098 0.78 8.33 63 4648.75 1554.59 1521.32 N 319.94 E 1554.60 11.88 0.10 0.10 1.27 10 R 81 MWD 5161 0.90 354.49 63 4711.75 1555.49 1522.24 N 319.96 E 1555.50 11.87 0.37 0.19 549.46 66 L 82 MWD 5225 0.88 355.77 64 4775.74 1556.45 1523.23 N 319.87 E 1556.45 11.86 0.04 -0.03 2.00 136 R 83 MWD 5288 0.91 359.43 63 4838.73 1557.40 1524.21 N 319.83 E 1557.41 11.85 0.10 0.05 5.81 64 R 84 MWD 5352 1.09 0.83 64 4902.72 1558.50 1525.33 N 319.84 E 1558.50 11.84 0.28 0.28 -560.31 8 L 85 MWD 5414 0.77 357.95 62 4964.71 1559.48 1526.33 N 319.83 E 1559.48 11.83 0.52 -0.52 576.00 173 L 86 MWD 5476 0.57 355.81 62 5026.71 1560.18 1527.06 N 319.79 E 1560.18 11.83 0.33 -0.32 -3.45 174 L 87 MWD 5540 0.69 2.15 64 5090.71 1560.87 1527.76 N 319.78 E 1560.87 11.82 0.22 0.19 -552.59 33 L 88 MWD 5602 0.76 2.53 62 5152.70 1561.64 1528.55 N 319.82 E 1561.64 11.82 0.11 0.11 0.61 4 R 89 MWD 5666 0.89 4.38 64 5216.69 1562.55 1529.46 N 319.87 E 1562.56 11.81 0.21 0.20 2.89 13 R 90 MWD 5729 0.87 8.53 63 5279.89 1563.52 1530.43 N 319.98 E 1563.52 11.81 0.11 -0.03 6.59 109 R 91 MWD 5791 0.98 4.91 62 5341.68 1564.51 1531.42 N 320.10 E 1564.51 11.81 0.20 0.18 -5.84 30 L 92 MWD 5854 1.08 8.24 63 5404.67 1565.64 1532.54 N 320.23 E 1565.64 11.80 0.18 0.16 5.29 33 R 93 MWD 5918 1.17 14.29 64 5468.66 1566.89 1533.77 N 320.48 E 1566.90 11.80 0.23 0.14 9.45 56 R 94 MWD 5982 1.34 10.46 64 5532.64 1568.30 1535.14 N 320.77 E 1568.30 11.80 0.30 0.27 -5.98 28 L 95 MWD 6043 1.49 14.70 61 5593.62 1569.80 1536.61 N 321.10 E 1569.80 11.80 0.30 0.25 6.95 37 R 96 MWD 6108 1.79 16.80 65 5658.60 1571.66 1538.40 N 321.81 E 1571.66 11.81 0.47 0.46 3.23 12 R • LJ 3 of 80 ~~~~ Company: Marathon Job Number: 1712869 BAKER Field: Ninilchik Field,Alaska Magnetic Decl.: 18.71 Mu~HES Borough Cook Inlet Grid Corr.: n/a i~TFQ Well Name: Paxton#2 Total Survey Corr.: 19° Rig: Glacier#1 Target Info: Calculation Method: Proposed Azimuth: Depth Reference: Tie Into: Surface Minimum Curvature 11.7° RKB No. Tooi type Survey Depth (ft) Incl ° Azimuth ° Course Lgth ft TVD ft VS ft Coordinates N/S ft E/W ft Closure Dist ft An ° DLS °/100' Build Rate °/100' Waik Rate °/100' Tool Face 97 MWD 6171 1.82 17.29 63 5721.56 1573.63 1540.30 N 322.19 E 1573.63 11.81 0.05 0.05 0.78 27 R 98 MWD 6234 2.06 20.78 63 5784.53 1575.75 1542.31 N 322.89 E 1575.75 11.82 0.42 0.38 5.54 28 R 99 MWD 6296 2.20 20.27 62 5846.49 1578.02 1544.47 N 323.70 E 1578.03 11.84 0.23 0.23 -0.82 8 L 100 MWD 6359 2.37 23.34 63 5909.44 1580.49 1546.80 N 324.63 E 1580.50 11:85 0.33 0.27 4.87 37 R 101 MWD 6423 2.48 26.67 64 5973.38 1583.13 1549.25 N 325.78 E 1583.13 11.88 0.28 0.17 5.20 54 R 102 MWD 6486 2.47 29.48 63 6036.32 1585.74 1551.65 N 327.06 E 1585.75 11.90 0.19 -0.02 4.46 96 R 103 MWD 6548 2.55 26.49 62 6098.26 1588.34 1554.05 N 328.33 E 1588.36 11.93 0.25 0.13 -4.82 60 L 104 MWD 6611 2.49 24.05 63 6161.20 1591.03 1556.55 N 329.52 E 1591.05 11.95 0.20 -0.10 -3.87 120 L 105 MWD 6673 2.42 30.43 62 6223.14 1593.59 1558.91 N 330.73 E 1593.61 11.98 0.45 -0.11 10.29 108 R 106 MWD 6.735 2.59 34.54 62 6285.08 1596.12 1561.19 N 332.19 E 1596.14 12.01 0.40 0.27 6.63 49 R 10.7 MWD 6799 2.49 38.20 64 6349.02 1598.70 1563.48 N 333.86 E 1598.73 12.05 0.30 -0.16 5.72 123 R 108 MWD 6862 2.39 40.96 63 6411.96 1601.07 1565.55 N 335.57 E 1601.11 12.10 0.24 -0.16 4.38 132 R 109 MWD 6925 2.55 42:36 63 6474.90 1603.42 1567.57 N 337.38 E 1603.47 12.15 0.27 0.25 2.22 21 R 110 MWD 6988 2.47 46.24 63 6537.84 1605.74 1569.55 N 339.30 E 1605.80 12.20 0.30 -0.13 6.16 117 R 111 MWD 7050 2.34 45.86 62 6599.79 1607.89 1571.35 N 341.18 E 1607.97 12.25 0.21 -0.21 -0.61 173 L 112 MWD 7116 2.31 46.13 66 6665.73 1610.10 1573.21 N 343.10 E 1610.19 12.30 0.05 -0.05 0.41 160 R 113 MWD 7178 2.34 46:47 62 6727.68 1612.17 1574.95 N 344.92 E 1612.28 12.35 0.05 0.05 0.55 25 R 114 MWD 7241 2.47 46.63 63 6790.63 1614.34 1576.77 N 346.84 E 1614.47 12.41 0.21 0.21 0.25 3 R 115 MWD 7302 2.33 45.56 61 6851.57 1616.45 1578.54 N 348.68 E 1616.59 12.46 0.24 -0.23 -1.75 163 L 116 MWD 7366 2.36 45.13 64 6915.52 1618.63 1580.38 N 350.54 E 1618.79 12.51 0.05 0.05 -0.67 31 L 117 MWD 7428 2.20 46.33 62 6977.47 1620.67 1582.10 N 352.31 E 1620.85 12.55 0.27 -0.26 1.94 164 R 118 MWD 7493 2.20 50.60 65 7042.42 1622.67 1583.76 N 354.17 E 1622.88 12:61 0.25 0.00 6.57 92 R 119 MWD 7556 2.24 50.78 63 7105.38 1624.57 1585.30 N 356.06 E 1624.80 12.66 0.06 0.06 0.29 10 R 120 MWD 7618 2.40 53.43 62 7167.33 1626.48 1586.84 N 358.04 E 1626.73 12.71 0.31 0.26 4.27 35 R 121 MWD 7681 2.34 54.13 63 7230.27 1628.41 1588.38 N 360.15 E 1628.70 12:78 0.11 -0.10 1.11 155 R 122 MWD 7744 2.31 54.80 63 7293.22 1630.29 1589.87 N 362.23 E 1630.61 12.83 0.06 -0.05 1.06 138 R 123 MWD 7807 2.36 54.64 63 7356.17 1632.17 1591.35 N 364.32 E 1632.52 12.89 0.08 0.08 -0.25 8 L 124 MWD 7871 2.26 52.56 64 7420.12 1634.08 1592.88 N 366.40 E 1634.48 12.95 0.20 -0.16 -3.25 141 L 125 MWD 7934 2.26 47.79 63 7483.07 1636.03 1594.47 N 368.30 E 1636.45 13.01 0.30 0.00 -7.57 92 L 126 MWD 7996 2.28 44.55 62 7545.02 1638.05 1596.17 N 370.07 E .1638.51 13.05 0.21 0.03 -5.23 83 L 127 MWD 8060 2.39 42.31 64 7608.96 1640.27 1598.06 N 371.87 E 1640.76 13.10 0.22 0.17 -3.50 41 L 128 MWD 8122 2.37 44.50 62 7670.91 1642.46 1599.93 N 373.63 E 1642.98 13.14 0.15 -0.03 3.53 103 R i i 4 of 80 ~~~ Company: Marathon Job Number: 1712869 BAKER Field: Ninilchik Field,Alaska Magnetic Decl.: 18.71 Nu~HES Borough Cook Inlet Grid Corr.: n/a LNTE(2 Well Name: Paxton#2 Total Survey Corr.: 19° Rig: Glacier#1 Target Info: Calculation Method: Proposed Azimuth: Depth Reference: Tie Into: Surface Minimum .Curvature 11.7° RKB No. Tooi Type Survey Depth (ft Incl ° Azimuth ° Course L th ft TVD ft VS ft Coord N/S ft inates E/W ft Closure Dist ft An ° DLS °/100' Build Rate °/100' Walk Rate °/100') Tool Face 129 MWD 8187 2.19 44.60 65 7735.86 1644.63 1601.78 N 375.45 E 1645.19 13.19 0.28 -0.28 0.15 179 R 130 MWD 8250 1.91 45.94 63 7798.82 1646.51 1603.36 N 377.05 E 1647.10 13.23 0.45 -0.44 2.13 171 R 131 MWD 8312 2.30 45.98 62 7860.78 1648.39 1604.95 N 378.69 E 1649.02 13.28 0.63 0.63 0.06 0 R 132 MWD 8375 1.84 48.56 63 7923.74 1650.25 1606.49 N 380.35 E 1650.91 13.32 0.74 -0.73 4.10 170 R Projectd 8436 1.84 48.56 61 7984.70 1651.81 1607.79 N 381.82 E 1652.51 13.36 0.00 0.00 0.00 • 5 of 80 Marathon Oil Company Page 1 of 10 Operations Summary Report Legal Well Name: PAXTON 2 Common Well Name: PAXTON 2 Spud Date: 1/7/2008 Event Name: ORIGINAL DRILLING Start: 1/4/2008 End: Contractor Name: GLACIER DRILLING Rig Release: 2/15/2008 Group: Rig Name: GLACIER DRILLING Rig Number: 1 Date From - To Hours Code Cod Phase ' Description of Operations 1/15/2008 06:00 - 06:00 24.00 MOB RIG_ MIRU Load out and ship sub, carrier and mud boat. Load out and ship boiler,generator and water tank.Spot sub, set mud boat. Drive carrier onto Mud boat. Set gererator,boiler hose and water tank. Spot pit and pump units. scope up sub. Note boiler blown lines froze up, thaw out to drain boiler. Weather conditions from 1700 hrs to 0600hrs. Blizzard conditions, winds to 38mph with blowing snow. No toms at Paxton pad. 1/16/2008 06:00 - 12:00 6.00 RURD_ RIG_ MIRU PJSM: Con't rig up GD-1. Fuel rig equipment. Take on rig water. Thaw water pumps. Install bridge crane beams. Prep sub to raise. Attempt to raise sub (couldn't pin). Put heater in sub & work up & down. Pin sub. PJSM: Crane up fuel tank & grey iron. Spot carrier & set on jack stands. R/U dresser sleeves & pop-off lines. Fill boiler w/ water & begin heating up. Take on rig fuel. 12:00 - 00:00 12.00 RURD_ RIG_ MIRU PJSM w/ crane operator. Install derrick house, doghouse, choke house & BOP conex. Move wellhouse to set carrier platform. Set BOP conex & stairs. Raise gas buster. Unload trailers. Fill & load daytank for loader. Repair flow line. Stand sub windwalls. Plug into mechanic & parts house. C/O battery on #2 generator. Install panic line. Set back floor plate & rear wind walls. Raise derrick & hook up guy wires. Finish crane work. Steam around pits & pump room. Plug in carrier cords. R/U water well. Flip down carrier skirt. R/U welders shop. 00:00 - 06:00 6.00 RURD_ RIG_ MIRU PJSM: Pull wires f/ doghouse to carrier. R/U service lines. Put steam to floor. Install ext lights on doghouse & choke house. PJSM: Prep & telescope up derrick. Secure guy lines. Install bows & traps on carrier. R/U degassser. Inspect #1 & 2 pumps. Remove snow & spot mat for mud products. Repair inlet valve on #1 air compressor. 1/17/2008 06:00 - 12:00 6.00 RURD_ RIG_ MIRU PJSM: Install cylinder socks. R/U mud & cmt lines on derrick. R/U shock hoses. Install trip tank. R/U choke lines to poor boy & flow line. Spot hanson tank, pump #3 & cat walk. P/U beaver slide. Unload Epoch & MWD shacks. 12:00 - 00:00 12.00 RURD_ RIG_ MIRU PJSM: R/U cuttings tank. Set M-I centrifuge van. Take on 3652 gal diesel. Install heat trace & insulate pump #3 suction & discharge lines. Spot cement silo. Sample well water. C/O tugger valves @ V-door. Remove man rider valve assy. Hang bridge cranes. Install beam stop. R/U pump #3 shock hose. Fill up rig water tank & pre-heat. Circ. water around rig. Circ. water around pits & pumps. Fill camp water tank. Spot & rig up power to Epoch &MWD shacks. Hang torque tube. 00:00 - 06:00 6.00 RURD_ RIG_ MIRU PJSM: Install "T" bar, turnbuckles and adjust torque tube. R/U control wires &gai-tronics to pump #3. PJSM: P/U & hang top drive & slide. R/U service loop & kelly hose. Repair air relief on #1 carrier motor. Run gai-tronics line from camp to rig. Install bails & elevators. 1/18/2008 06:00 - 09:00 3.00 RURD_ RIG_ MIRU PJSM: R/U tongs, spinners & derrick board. Test run pump #1 & 2. 09:00 - 12:00 3.00 NUND BOPE SURDRL PJSM: Make cut on 20" conductor & dress stub. Install starter head & test to 300 psi f/ 10 min. Install 4" valve on starter head. Weld nipple on conductor. Test gas alarms. Check koomey bottles & charge as needed. Install 2" valve on conductor. 12:00 - 13:00 1.00 SAFETY MTG_ SURDRL Hold weekly safety meeting w/ both crews. 13:00 - 00:00 11.00 NUND BOPE SURDRL PJSM: Test top drive. Clear ice & snow. Build burms. N/U diverter. Install flow line, adapter & pitcher nipple. Change camlock on pitcher nipple. R/U kill line, mud manifold, choke line, bleeder & fillup lines. R/U knife valve &diverter line. Finish mixing mud. Unload trailers. 00:00 - 01:00 1.00 NUND BOPE SURDRL PJSM: Chain down diverter line. R/U fill up line. R/U kill line to conductor. R/U manual trip tank gauge. Set pipe racks. 01:00 - 01:30 0.50 TEST BOPE SURDRL PJSM: Test diverter stack &koomey. Check flow line pit sensors. Printed: 5/29/2008 3:25:02 PM Marathon Oil Company Page 2 of 10 Operations Summary Report Legal Well Name: PAXTON 2 Common Well Name: PAXTON 2 Spud Date: 1/7/2008 Event Name: ORIGINAL DRILLING Start: 1/4/2008 End: Contractor Name: GLACIER DRILLING Rig Release: 2/15/2008 Group: Rig Name: GLACIER DRILLING Rig Number: 1 Date From - To Hours i Code Code Phase Description of Operations 1/18/2008 01:30 - 06:00 4.50 PULD_ DP_ SURDRL 1/19/2008 06:00 - 06:30 0.50 PULD_ DP_ SURDRL 06:30 - 09:00 2.50 PULD BHA SURDRL 09:00 - 10:30 1.50 CLNOU CSG_ SURDRL 10:30 - 13:00 2.50 DRILL_ ROT_ SURDRL 13:00 - 13:30 0.50 REPAIR RIG_ SURDRL 13:30 - 15:00 1.50 DRILL_ ROT_ SURDRL 15:00 - 15:30 0.50 CIRC_ MUD_ SURDRL 15:30 - 17:00 1.50 REPAIR RIG_ SURDRL 17:00 - 18:00 1.00 TRIP_ DP_ SURDRL 18:00 - 21:00 3.00 PULD BHA SURDRL 21:00 - 00:00 3.00 DRILL_ ROT_ SURDRL 00:00 - 06:00 6.00 DRILL_ ROT_ SURDRL 1/20/2008 06:00 - 12:00 6.00 DRILL ROT SURDRL 12:00 - 18:00 6.00 DRILL ROT SURDRL 18:00 - 23:00 5.00 DRILL ROT SURDRL 23:00 - 00:30 1.50 CIRC_ MUD_ SURDRL 00:30 - 02:30 2.00 TRIP_ WIPR SURDRL 02:30 - 03:30 1.00 TRIP WIPR SURDRL 03:30 - 05:00 1.50 CIRC_ MUD_ SURDRL 05:00 - 06:00 1.00 TRIP_ WIPR SURDRL 1/21/2008 06:00 - 06:30 0.50 TRIP_ BHA_ SURDRL 06:30 - 09:00 2.50 PULD BHA SURDRL 09:00 - 09:30 0.50 CLEAN_ RIG_ SURDRL 09:30 - 12:30 3.00 RURD CSG SURCSG PJSM: R/U, P/U & drift drill pipe. M/U & rack back 15 stands 5" drill pipe. P/U & rack back 5" HWDP. P/U & rack back 6-1/4"jars & 4 jts 5" HWDP. PJSM: P/U & M/U bit, motor, stab, non-mag pony collar & x/o. RIH to 77'. Clean out 20" conductor f/ 77'-114' @ 400 gpm, 290 psi, 0-2 klb wob, 50 rpm, 1-2 kft-Ibs tq. PJSM: Drill 16" hole f/ 114'-167' @ 400 gpm, 400 psi, 0-5 klb wob, 50 rpm, 1-3 kft-Ibs tq, p/u 36 klbs, s/o 36 klbs, rot wt 36 klbs. ART: 2.2 hrs. Replace bolts & rewire top drive pipe guide. PJSM: Drill 16" hole f/ 167'-225' @ 400 gpm, 400 psi, 0-5 klb wob, 50 rpm, 1-3 kft-Ibs tq. p/u 40 klbs, s/o 39 klbs, rot wt 39 klbs. ART: 1.3 hrs. Pump hi-vis sweep around & circ until clean. Repair hydraulics & throttle control error on tugger unit located @ v-door. PJSM: POOH & lay down bit. Blow down surface equipment. PJSM: P/U 13-1/2" mill tooth bit ,MWD, (3) non-mag drill collars, shock sub & (3) crossover subs. RIH to 225'. No fill. Drill 13-1/2" hole f/ 225'-329' @ 450 gpm, 650 psi, 0-5 klb wob, 50 rpm, 1-3 kft-Ibs tq. p/u 41 klbs, s/o 39 klbs, rot wt 40 klbs. ART: 1.3 hrs. AST: 0.2 hrs. Drill 13-1/2" hole f/ 329'-680' @ 625 gpm, 1000 psi, 5-10 klb wob, 50 rpm, 3-4 kft-Ibs tq. p/u 50 klbs, s/o 50 klbs, rot wt 50 klbs. ART: 0.6 hrs. AST: 2.9 hrs. Drill 13-1/2" hole f/ 680'-1043' @ 650 gpm, 1400 psi, 5-15 klb wob, 70 rpm, 4-5 kft-Ibs tq. p/u 60 klbs, s/o 60 klbs, rot wt 60 klbs. ART: 1.1 hrs. AST: 3.1 hrs. PJSM: Drill 13-1/2" hole f/ 1043'-1340' @ 650 gpm, 1550 psi, 5-20 klb wob, 70 rpm, 4-5 kft-Ibs tq. p/u 65 klbs, s/o 60 klbs, rot wt 65 klbs. ART: 1.3 hrs. AST: 3.0 hrs. Avg background gas = 10 units. Drill 13-1/2" hole f/ 1340'-1630' @ 650 gpm, 1600 psi, 5-15 klb wob, 70 rpm, 4-5 kft-Ibs tq. p/u 70 klbs, s/o 61 klbs, rot wt 67 klbs. ART: 3.0 hrs. AST: 0.3 hrs. Max gas = 148 units @ T.D. Avg background gas = 88 units. Circ & condition hole. Pump 40 bbl hi-vis sweep around @ 650 gpm. Continue circulating. Slight increase in cuttings seen on bottoms up. No significant increase in cuttings seen from sweep. Check flow. Pump dry job. PJSM: POOH (SLM) to 180'. No overpull. No tight spots. PJSM: RIH to 1630'. No ledges or tight spots encountered. No fill on bottom. Circ 40 bbl hi-vis sweep around @ 650 gpm. Continue circulating out trip gas. No significant increase in cuttings returns over shakers. Max trip gas = 114 units. Check flow. PJSM: Blow down mud lines. POOH w/ 5' drill pipe to 680'. POOH w/ 11 stds 5" HWDP. PJSM: L/D shock sub & (2) xo's, (3) non-mag drill collars, xo sub, MWD, pony collar, string stab, mud motor & bit. UD handling tools & clean rig floor. PJSM: R/U to run 10-3/4" csg. C/0 bails, elevators & rig tongs. R/D spinners. Install long snub post &csg fillup line. Remove rotary bushings. Install 10-3/4" csg slips & bowl. Function safety valve on swedge. P/U csg tongs. Stage centralizers on rig floor. Printed: 5/29/2008 3:25:02 PM Marathon Oil Company Page 3 of 10 Operations Summary Report Legal Well Name: PAXTON 2 Common Well Name: PAXTON 2 Spud Date: 1/7/2008 Event Name: ORIGINAL DRILLING Start: 1/4/2008 End: Contractor Name: GLACIER DRILLING Rig Release: 2/15/2008 Group: Rig Name: GLACIER DRILLING Rig Number: 1 Date From - To ~ Hours Code Sub Code Phase 1/21/2008 12:30 - 16:00 3.50 RUN CSG_ SURCSG 16:00 - 17:30 1.50 CIRC_ MUD_ SURCSG 17:30 - 19:30 2.00 PUMP_ CMT_ SURCSG 19:30 - 20:00 0.50 CLEAN_ TANK SURCSG 20:00 - 20:30 0.50 PUMP_ WTR SURCSG 20:30 - 21:00 0.50 BLOWD EOIP SURCSG 21:00 - 00:00 3.00 NUND BOPE SURCSG 00:00 - 03:00 3.00 RURD_ OTHR SURCSG 03:00 - 06:00 3.00 NUND BOPE SURCSG 1/22/2008 06:00 - 08:00 2.00 NUND WLHD SURCSG 08:00 - 12:00 4.00 NUND BOPE SURCSG 12:00 - 21:30 9.50 NUND BOPE SURCSG 21:30 - 02:30 5.00 TEST BOPE SURCSG 02:30 - 03:00 0.50 RUNPU WBSH SURCSG 03:00 - 04:30 1.50 TEST CSG SURCSG 04:30 - 06:00 1.50 PULD_ DP_ SURCSG 1/23/2008 06:00 - 06:30 0.50 PULD_ DP_ SURCSG 06:30 - 07:00 0.50 TRIP_ DP_ SURCSG 07:00 - 09:00 2.00 PULD_ DP_ SURCSG 09:00 - 10:00 1.00 TRIP_ DP_ SURCSG 10:00 - 11:30 1.50 SLPCUT DLIN SURCSG 11:30 - 12:00 0.50 SERVIC RIG_ SURCSG 12:00 - 12:30 0.50 REPAIR RIG SURCSG Description of Operations PJSM: P/U, M/U &RIH w/ 10-3/4" float shoe, shoe track & float collar. Check floats. Con't RIH w/ total 36 jts of 10-3/4", 45.5 #/ft, J-55, BTC casing. Top of float collar @ 1572.48', shoe @ 1616.75'. No gains/losses. orrec ut tsp acemen . PJ M: U cmt ea irc con ttton well @ 175 gpm, 145 psi. for 45 min. R/D Weatherford csg tools w/ circ. PJSM: Pump 40 bbl Mud Clean II spacer w/ rig pump. Tum over to BJ. Pump ahead 5 bbls water to fill cmt lines & test to 3000 psi. Drop top plug. Pump 457 sks Type 1 cement w/ 22% LW-6, 20% MPA-1, 2% CaCl2, 1 % SMS, 0.3% CD-32, 0.05% Static Free, 1 gal/100 sks FP-6L, 12.0 ppg, 2.481 cu.ft./sk yield, 10.335 gal water/sk, 3:47 hrs pumping time, 202 bbl slum, 112.46 bbls mixing water. Drop bottom plug & kick out w/ 5 bbls water. Displace w/ 146.17 bbls mud. Bump plug w/ 1000 psi over displacement pressure. Bleed off & check floats. Cement in place @ 19:14 hrs. 100% mud returns & 40 bbls cmt retums to surface. Pump out & clean up cellar. Flush mud lines & stack. Blow down surface equipment. PJSM: Nipple down diverter. C/O snub post. Rehang tongs. Rinse down cellar. Change oil in carrier. Remove knife valve. Start cleaning pits. PJSM: C/O bails. R/D fillup line, bleeder & trip tank lines. Take turnbuckles off stack. Haul off mud. PJSM: Make rough cut on 10-3/4" csg & L/D stub. N/D bell nipple & diverter stack. R/D flowline ext. Make final cut on 10-3/4" csg. PJSM: Install Vetco 10-3/4" slip lock x 11" 5M flanged multibowl wellhead. Pressure test to 1600 psi f/ 10 min. Good test. PJSM: Install flowline ext. N/U DSA spacer spool. P/U annular w/ bridge crane. Put doublegate on rack & spot under annular & proceed N/U. Clean pits, Change elevators. Rebuild low torque valve & install on mud manifold. PJSM: Thaw, rack & stack mud cross, single gate, double gate & annulars. Bolt & hammer up. Install choke hardline & adapter spool. Install check valve & kill line. Install quick connects on annular. Repair broken fitting on blind rams. R/U pitcher nipple & flow line adapter. Chain stack. Install trip tank valve & actuator. Build Flo-pro mud volume. PJSM: R/U & test BOP stack. Leak on bottom side of lower DSA. Retighten studs & retest (good). Proceed testing bope & all related components f/ 250-2500 psi f/ 5 min. Test gas alarms LEL & H2S. Test flow & PVT alarms. Perform accumulator drawdown test. Test witnessed by Lou Grimaldi. All while building mud. Install wear bushing. PJSM: R/U & test 10-3/4" csg to 2000 psi f/ 30 min. Good test. Blow down choke & mud line. Finish mixing mud. PJSM: P/U, Drift, M/U &RIH w/ 5" drill pipe singles. PJSM: P/U, Drift, M/U &RIH w/ 40 jts 5" drill pipe singles. PJSM: POOH w/ 20 stds 5" drill pipe & rack back (SLM). P/U, Drift, M/U &RIH w/ 40 jts 5" drill pipe singles. POOH w/ 20 stds 5" drill pipe & rack back (SLM). PJSM: Slip 120' & cut 146' drilling line. Adjust kick roller. Set crown-o-matic & check. Service rig, grease top drive, blocks, crown & carrier. PJSM: Work on trip tank valve & actuator. Printed: 5/29/2008 3:25:02 PM Marathon Oil Company Operations Summary Report Page 4 of 10 Legal Well Name: PAXTON 2 Common Well Name: PAXTON 2 Spud Date: 1/7/2008 Event Name: ORIGINAL DRILLING Start: 1/4/2008 End: Contractor Name: GLACIER DRILLING Rig Release: 2/15/2008 Group: Rig Name: GLACIER DRILLING Rig Number: 1 Date ~ From - To .Hours Code. .Code Phase Description of Operations 1/23/2008 12:30 - 15:00 2.50 PULD_ BHA_ SURCSG PJSM: P/U & M/U 9-7/8" PDC bit & 6-3/4" directional tools. RIH w/ HWDP & shallow test MWD tool (OK). 15:00 - 16:00 1.00 TRIP_ DP_ SURCSG RIH w/ 5" drill pipe f/ 820'-1514'. Wash down f/ 1514'-1558'. Tagged float collar 14' high. 16:00 - 20:30 4.50 DRILL_ CMT_ SURCSG Drill out 10-3/4" float collar, shoe track & float shoe. Clean out 13-1/2" rat hole to 1630'. 20:30 - 21:00 0.50 DRILL_ ROT SURCSG Drill 20' new formation f/ 1630'-1650' @ 440 gpm, 900 psi, 2-6 klb wob, _ 40 rpm, 4 kft-Ibs tq ART: 0.2 hrs. 21:00 - 22:00 1.00 CIRC_ MUD_ SURCSG Circ bottoms up. Rinse & fill pit #4 w/ 35 bbls water & pump down hole. Pump 40 bbl hi-vis sweep & displace hole w/ flo-pro mud. Max gas while circ = 208 units. 22:00 - 22:30 0.50 TEST_ LOT_ SURCSG R/U & Perform F.I.T. @ 1487' tvd w/ MWT= 9.1 ppg, csg press = 456 psi. EMW = 15.0 ppg. 22:30 - 23:15 0.75 BLOWD EQIP IN1DRL Blow down choke line. 23:15 - 06:00 6.75 DRILL_ ROT_ IN1DRL PJSM: Drill 9-7/8" hole f/ 1650'-2138' @ 450 gpm, 850 psi, 5-12 klb wob, 60 rpm, 4 kft-Ibs tq. p/u 70 klbs, s/o 55 klbs, rot wt 67 klbs. ART: 4.6 hrs. AST: 0.2 hrs. Avg background gas = 45 units. Max gas = 177 units. 1/24/2008 06:00 - 12:00 6.00 DRILL_ ROT_ IN1DRL PJSM: Drill 9-7/8" hole f/ 2138'-2446' @ 500 gpm, 1000 psi, 2-7 klb wob, 60 rpm, 4-5 kft-Ibs tq. p/u 70 klbs, s/o 55 klbs, rot wt 65 klbs. ART: 3.5 hrs. AST: 0.7 hrs. Avg bkgnd gas = 40 units, Avg Conn gas = 25 units, Max gas = 459 units. 12:00 - 16:30 4.50 DRILL_ ROT_ IN1DRL PJSM: Drill 9-7/8" hole f/ 2446'-2771' @ 500 gpm, 1100 psi, 5-8 klb wob, 60 rpm, 5-6 kft-Ibs tq. p/u 80 klbs, s/o 60 klbs, rot wt 70 klbs. ART: 2.4 hrs. AST: 0.5 hrs. Avg bkgnd gas = 15 units, Avg Conn gas = 45 units, Max gas = 142 units. 16:30 - 17:00 0.50 CIRC_ MUD_ IN1DRL CBU f/ wiper trip. Max gas = 12 units. 17:00 - 18:30 1.50 TRIP_ WIPR IN1 DRL PJSM: Make wiper trip f/ 2771'-1574'. No tight spots. No overpull. 18:30 - 19:30 1.00 SERVIC RIG_ IN1DRL PJSM: Lube rig, top drive, crown & carrier. Change 3 zirts. 19:30 - 20:30 1.00 TRIP_ WIPR IN1 DRL PJSM: RIH f/ 1574'-2708'. Wash last std down f/ 2708'-2771'. No ledges. No fill on bottom. 20:30 - 00:00 3.50 DRILL_ ROT_ IN1DRL PJSM: Drill 9-7/8" hole f/ 2771'-3000' @ 500 gpm, 1175 psi, 5-8 klb wob, 65 rpm, 4-5 kft-Ibs tq. p/u 88 klbs, s/o 63 klbs, rot wt 78 klbs. ART: 1.6 hrs. AST: 0.9 hrs. Avg bkgnd gas = 12 units, Avg Conn gas = 26 units, Max gas = 67 units. Trip gas = 34 units. 00:00 - 06:00 6.00 DRILL_ ROT_ IN1 DRL PJSM: Drill 9-7/8" hole f/ 3000'-3276' @ 530 gpm, 1300 psi, 3-7 klb wob, 70 rpm, 6-8 kft-Ibs tq. p/u 95 klbs, s/o 70 klbs, rot wt 82 klbs. ART: 2.0 hrs. AST: 2.0 hrs. Avg bkgnd gas = 28 units, Max gas = 211 units. No connection gas. 1/25/2008 06:00 - 12:00 6.00 DRILL_ ROT_ IN1DRL Drill 9-7/8" hole f/ 3276'-3482' @ 530 gpm, 1300 psi, 3-7 klb wob, 70 rpm, 6-8 kft-Ibs tq. p/u 99 klbs, s/o 75 klbs, rot wt 89 klbs. ART: 1.5 hrs. AST: 1.9 hrs. Max gas = 311 units, Avg bkgnd gas = 14 units, Avg conn gas = 36 units. 12:00 - 18:00 6.00 DRILL_ ROT_ IN1DRL PJSM: Drill 9-7/8" hole f/ 3482'-3737' @ 530 gpm, 1325 psi, 5-10 klb wob, 70 rpm, 6-9 kft-Ibs tq. p/u 108 klbs, s/o 78 klbs, rot wt 95 klbs. ART: 1.9 hrs. AST: 2.3 hrs. Max gas = 64 units, Avg bkgnd gas = 12 units, No conn gas. 18:00 - 23:30 5.50 DRILL_ ROT_ IN1DRL Drill 9-7/8" hole f/ 3737'-3919' @ 530 gpm, 1325 psi, 5-10 klb wob, 70 rpm, 6-9 kft-Ibs tq. p/u 116 klbs, s/o 80 klbs, rot wt 99 klbs. ART: 1.8 hrs. AST: 1.8 hrs. Max gas = 88 units, Avg bkgnd gas = 12 units, No conn gas. 23:30 - 00:30 1.00 CIRC_ MUD_ IN1DRL Circ bottoms up @ 530 gpm & con't circ until shakers clean. Check flow. Printetl: 5/29/2005 3:25:02 PM Marathon Oil Company Operations Summary Report Page 5 of 10 Legal Well Name: PAXTON 2 Common Well Name: PAXTON 2 Spud Date: 1/7/2008 Event Name: ORIGINAL DRILLING Start: 1/4/2008 End: Contractor Name: GLACIER DRILLING Rig Release: 2/15/2008 Group: Rig Name: GLACIER DRILLING Rig Number: 1 Date From - To Hours Code Code ~ Phase Description of Operations 1/25/2008 00:30 - 03:00 03:00 - 04:30 04:30 - 06:00 2.50TRIP IWIPR IN1DRL 1.501 TRIP IWIPR IN1DRL 1.50~CIRC_ MUD_ ~IN1DRL 1/26/2008 06:00 - 06:30 0.50 CIRC_ MUD_ IN1DRL 06:30 - 12:00 5.50 TRIP DP IN1DRL 12:00-13:30 1.50 PULD LOG IN1EVL 13:30 - 18:00 4.50 LOG_ OH_ IN1EVL 18:00 - 19:00 1.00 PULD_ LOG_ IN1EVL 19:00 - 21:30 2.50 PULD` BHA_ IN1CSG 21:30 - 23:00 1.50 TRIP_ DP_ IN1CSG 23:00 - 01:30 2.50 CIRC_ MUD_ IN1CSG 01:30 - 06:00 4.50 PULD_ DP_ IN1CSG 1/27/2008 06:00-08:30 2.50 PULD BHA IN1CSG 08:30 - 09:00 0.50 CLEAN_ RIG_ IN1CSG 09:00 - 09:30 0.50 RUNPU WBSH IN1CSG 09:30 - 10:00 0.50 RURD_ CSG_ IN1CSG 10:00 - 11:00 1.00 NUND BOPE INICSG 11:00 - 12:00 1.00 TEST BOPE IN1CSG 12:00 - 13:30 1.50 RURD_ CSG_ IN1CSG 13:30 - 15:30 2.00 REPAIR RIG_ IN1CSG 15:30 - 18:30 3.00 RURD_ CSG_ IN1CSG 18:30 - 22:30 4.00 RUN CSG_ IN1CSG 22:30 - 23:00 0.50 REPAIR EOIP IN1CSG 23:00 - 04:00 5.00 RUN_ CSG_ IN1CSG 04:00 - 05:00 1.00 CIRC_ MUD_ IN1CSG 05:00 - 06:00 1.00 CIRC_ MUD_ IN1CSG 1/28/2008 06:00 - 07:30 1.50 PUMP_ CMT_ IN1CSG PJSM: Blowdown top drive. Make wiper trip f/ 3919' to 10-3/4" csg shoe. No tight spots. No overpull. Proper fillup. PJSM: RIH f/ 1616'-3844'. Wash last std to bottom. No fill. Proper fluid displacement. Circ bottoms up & pump hi-vis sweep around @ 530 gpm. Not much cuttings increase from sweep. Trip gas = 168 units. Con't circ hole clean. Check flow. PJSM: POOH w/ 5" drill pipe. (SLM) No change in strap. Drop rabbit. Stand back flex collars. L/D MWD, XO sub, pony collar, string stab, mud motor & bit. PJSM w/ Weatherford wireline. R/U to run wireline. P/U & M/U quad-combo logging tools. RIH w/quad-combo logging tools on wireline to 3919'. Logged out of POOH & lay down quad-combo logging tools. R/D Weatherford wireline. PJSM: P/U, M/U 9-7/8" bit, bit sub, (2) XO subs & (3) non-mag drill collars. RIH w/ 5" HWDP to 759'. RIH w/ 5" drill pipe f/ 759'-3850'. Wash last std to bottom f/ 3850'-3919'. No fill. No problems PJSM: Circ & condition mud. Trip gas = 88 units. PJSM: POOH w/ laying down 5" drill pipe. PJSM: Lay down 21 jts 5" HWDP, drilling jars, (2) flex collars, (2) XO's, string stab, bit sub & bit. Clear & clean rig floor. Pull wear bushing. P/U & make test run w/ 7-5/8" csg hanger assy. L/D same. PJSM: Drain stack. C/O upper pipe rams to 7-5/8" csa rams. PJSM: P/U 7-5/8" test it & test olua. Test csg rams t/ 250/2500 psi for 5 min. L/D test jt. PJSM: R/U to run 7-5/8" casing. Swap rig tongs. R/D pipe spinner. Move torque tube. Remove elevators & short bails. C/O snub post. Work on stabbing board. Free up. R/U & test. Install fill up tool. R/U long bails &csg pick-up line. Install elevators. R/U spiders. Stage centralizers on rig floor. PJSM: P/U, M/U &RIH w/ 7-5/8" float shoe, shoe track(2 jts) & float collar. Check floats. Con't RIH w/ 33 jts of 7-5/8", 29.7 #/ft, L-80, MOD BTC csg U 1338'. Check if electrical problem exists w/ Weatherford power tongs. Appears to shock operator when in use. No problem found. Con't RIH w/ 7-5/8" csg. CBU @ 10-3/4" csg shoe. Wash landing jt down f/ 3852'-3902'. Run total 95 jts. Top of float collar @ 3817.32'. Float shoe set @ 3902.38', No problems RIH. No gains/losses. Proper fluid displacement. PJSM: Circ bottoms up @ 4.7 bpm w/ 500 psi w/ rigging down Weatherford csg tools. Blowdown top drive. PJSM w/ BJ cementing services. Rig up cmt head & circulate. Pump 2 bbls water to test cmt lines to 3000 psi. Test cmt lines to 3000 psi. Drop 1st plug. Pump 30 bbls of 10.5 ppg, MCS4D weighted spacer using 25.68 bbls water. Puma lead slurry w/ 265 sks of 12.0 ppg, "Type 1" cmt w/ 25% LW-6, 5% MPA-1, 0.9% BA-10, 0.4% SMS, 0.6% CD-32, 1% FL-52, 0.05% Static Free, 1 gal/100 sks FP-6L, 2.095 cu.ft./sk yield, 7.662 gal water/sk, 4.75 hr. thickening time, 98.87 bbl slurry, 48.34 bbls mix Printed: 5/29/2008 3:25:02 PM Marathon Oil Company Page 6 of 10 Operations Summary Report Legal Well Name: Common Well Name: Event Name: Contractor Name: PAXTON 2 PAXTON 2 ORIGINAL DRILLING GLACIER DRILLING GLACIER DRILLING Spud Date: 1/7/2008 Start: 1/4/2008 End: Rig Release: 2/15/2008 Group: Rig Number: 1 Rig Name: Date From - To Hours Code I Code Phase 1/28/2008 06:00 - 07:30 07:30 - 10:00 10:00 - 11:00 11:00 - 12:00 12:00 - 13:30 13:30 - 15:00 15:00 - 17:00 17:00 - 17:30 17:30 - 20:00 Description of Operations 1.50 PUMP_ CMT_ IN1CSG water. Line up to tail slurry & pump 150 sks of 15.8~pg, Class "G" cmt w/ 0.7%FL-63, 0.5% EC-1, 0.3% CD-32, 0.1% ASA-301, 0.1% R-3, 0.05% Static Free, 1 gal/100 sks FP-6L, 1.1581 cu.ft./sk yield, 4.939 gal water/ sk, 4.62 hr. thickening time, 30.97 bbl slurry,,17.64 bbls mix water. Drop 2nd plug & kick out w/ 5 bbls water. Switch to rig pumps & displace w/ 170.98 bbls mud. Bump plug @ calculated strokes w/ 1000 ' v e e t res .Bleed off & check floats. Cement in place @ 07:30 hrs. No fluid losses. Saw slight cmt interface in spacer returns. , 2.50 RURD_ CSG_ IN1CSG PJSM: R/D & blow down cmt lines. L/D cmt head, landing jt. & fill up tool. C/O bails & elevators. Switch rig tongs. 1.00 TEST_ WLHD IN1CSG Install 11" x 7-5/8" pack-off. Test U 5000 psi f/ 10 min. 1.00 BLOWD EOIP IN1CSG R/U & flush out BOP stack. Blow down mud lines & top drive. 1.50 CHANG EOIP IN1CSG PJSM: C/O upper rams to 2-7/8" x 5-1/2" variables. C/O lower rams to 1.50 CHANG~EOIP IN1CSG 2.00 PULD_ EOIP IN1CSG 0.50 TEST_ BOPE IN1CSG 2.50 TEST_ BOPE IN1CSG .20:00 - 20:30 0.50 RUNPU WBSH IN1CSG 20:30 - 21:30 1.00 TEST_ CSG_ IN1CSG 21:30 - 22:30 1.00 RURD_ CSG_ IN1CSG 22:30 - 00:00 1.50 CHANG EOIP IN1CSG 00:00 - 05:00 5.00 PULD_ DP_ IN1CSG 05:00 - 06:00 1.00 PULD_ DP_ IN1CSG 1/29/2008 06:00 - 09:00 3.00 PULD_ DP_ IN1CSG 09:00 - 14:30 5.50 PULD BHA IN1CSG 14:30 - 18:00 3.50 RURD_ OTHR IN1CSG 18:00 - 23:00 5.00 PULD DP IN1CSG 23:00 - 02:30 3.50 DRILL CMT IN1CSG 02:30 - 03:00 0.50 DRILL_ ROT_ IN1CSG 03:00 - 04:00 1.00 CIRC_ MUD_ IN1CSG 04:00 - 04:30 0.50 TEST_ BOPE IN1CSG 04:30 - 06:00 1.50 DRILL_ ROT_ PR1 DRL ~ 1/30/2008 ~ 06:00 - 12:00 ~ 6.00 ~ DRILL_ ~ ROT_ ~ PR1 DRL PJSM: C/O saver sub on top drive. Lay out all 5" subs & handling equip. from rig floor. C/O elevator inserts to 4". Pick up 4" subs & handling equip. P/U 4" test jt 8 test plug. Rig up to test bope. PJSM: Test bope & all related components t/ 250/2500 psi f/ 5 min. Test alarms LEL & H2S. Test flow & PVT alarms. Perform accumulator drawdown test. Witness waived by AOGCC, Jim Regg on 1/25/08 @ 09:45 hrs. R/D test equipment. Install wear ring. Reset torque tube & fold up stabbing board PJSM: Finish R/U 4" pipe handling equip. PJSM: RIH w/ picking up 120 jts 4" drill pipe. POOH & rack back 30 stds 4" drill pipe. PJSM: POOH & rack back 30 stds 4" drill pipe. (P/U total 60 stds). PJSM: P/U & M/U 6-3/4" bit, mud motor, stab, pony collar, MWD, filter sub, (2) flex collars, crossover sub, 21 jts 4" HW DP & jars t/ 818'. PJSM: Calibrate MWD block height sensor. P/U & R/U MWD bypass actuator unit. Tie into standpipe & flowline. Flow test unit. Slowdown mud lines. PJSM: RIH w/,picking up 95 jts 4" drill pipe f/ 818'-3803'. Wash down on jt #96. Tag float collar @ 3817'. Drill 7-5/8" float collar, shoe track & float shoe f/ 3817'-3902'. Clean out 9-7/8" rat hole f/ 3902'- 3919'. Drill 20' new 6-3/4" formation for FIT f/ 3919'-3939' @ 245 gpm, 1100 psi, 4-6 klbs wob, 30 rpm, 4 kft-Ibs tq. ART: 0.4 hrs. Circ bottoms up. Rinse & fill pit #4 w/ 30 bbls water & pump down hole. Pump 30 bbl hi-vis sweep & displace hole w/ new 9.05 ppg flo-pro mud system. R/U & perform F.I.T. @ 3453' tvd w/ OMWT= 9.05 ppg, csg press = 1,068 psi.~IyTVP-=~.0 ppg. Drill 6-3/4" hole f/ 3939'-4024' @ 275 gpm, 1100 psi, 2-5 klb wob, 30-40 rpm, 3-4 kft-Ibs tq. p/u 90 klbs, s/o 60 klbs, rot wt 70 klbs. ART: 1.1 hrs. Max gas = 66 units. Avg bkgnd gas = 12 units. No conn. gas Drill 6 3/4 production section 4024'- 4368' Up wt. 110k. Dn. wt. 85k. Rt. wt 76k. Tq 5-6k. Wob. 2-6k. 300gpm 150spm 1450psi. Max gas 210units. No gain/Loss. Art=3.9hrs. Ast=O Printed: 5/29/2008 3:25:02 PM ~ ~ Marathon Oil Company Page 7 of 10 Operations Summary Report Legal Well Name: PAXTON 2 Common Well Name: PAXTON 2 Spud Date: 1/7/2008 Event Name: ORIGINAL DRILLING Start` 1/4/2008 End: Contractor Name: GLACIER DRILLING Rig Release: 2/15/2008 Group: Rig Name: GLACIER DRILLING Rig Number: 1 Date From - To ~ Hours Code Code Phase ~ Description of Operations 11/30/2008 112:00 - 18:00 18:00 - 00:00 00:00 - 06:00 6.00 ~ DRILL_ ~ ROT_ ~ PR1 DRL 6.00 ~ DRILL_ ~ ROT_ ~ PR1 DRL PJSM: Drill 6-3/4" hole f/ 4368'-4843" @ 300 gpm, 1500 psi, 3-6 klb wob, 50-70 rpm, 5-6 kft-Ibs tq. p/u 115 klbs, s/o 75 klbs, rot wt 85 klbs. ART: 4.3 hrs. AST: 0 hrs. Max gas = 136 units, Avg bkgnd gas = 16 units, Avg Conn gas = 40 units. Drill 6-3/4" hole f/ 4843'-5221' @ 300 gpm, 1600 psi, 3-6 klb wob, 70 rpm, 6-7 kft-Ibs tq. p/u 120 klbs, s/o 65 klbs, rot wt 85 klbs. ART: 4.2 hrs. AST: 0 hrs. Max gas = 114 units, Avg bkgnd gas = 20 units, Avg Conn gas = 12 units. PJSM: Drill 6-3/4" hole f/ 5221'-5504' @ 300 gpm, 1650 psi, 2-8 klb wob, 60-70 rpm, 6-8 kft-Ibs tq. p/u 125 klbs, s/o 85 klbs, rot wt 88 klbs. ART: 3.9 hrs. AST: 0.5 hrs. Max gas = 76 units, Avg bkgnd gas = 15 units, No Conn gas. Drill 6 3/4 production section f/ 5504'- 5545'. ART: 0.5 hrs. AST: 0 hrs. Packing on swivel wash out. Trouble shoot. Decision made to make wiper trip and repair at 7 5/8 shoe 3900' Monitor well, Blow down mud lines, fill trip tank. POH (wiper trip) from 5545' to 3850' Work through tight hole f- 4520'-4500'. Rest of hole slick, No gain or losses. Service rig. tube carrier drivelines, top drive, blocks and crown. Replace swivel cartridge. C/O stabbing guide and grabber dies on top drive pipe handler. (Stabbing guide was for 5" drillpipe). Test new swivel cartridge. Saw mud leaking from flange on upper mud saver valve, not from swivel cartidge. Remove flange, found bad o-ring. Replace o-ring and reinstall valve. RIH f- 3850'-5412' Make pass with LWD from 5411'- 5421'. Wash from 5412' to 5545'. Tag bottom no fill. No gain/ loss Clean up tight spot at 5485' Drill 6-3/4" hole f/ 5545'-5984' @ 295 gpm, 1800 psi, 3-6 klb wob, 70 rpm, 6-8 kft-Ibs tq. p/u 120 klbs, s/o 75 klbs, rot wt 90 klbs. ART: 6.3 hrs. AST: 0 hrs. Trip gas = 166 units, Max gas = 179 units, Avg bkgnd gas = 12 units, No conn gas. Added 1% tube-tex. Reduced MWD stick/slip values f/ 5-6 to 1-3. PJSM: Drill 6-3/4" hole f/ 5984'-6315' @ 303 gpm, 1900 psi, 2-8 klb wob, 60-70 rpm, 6-8 kft-Ibs tq, p/u 152 klbs, s/o 86 klbs, rot wt 106 klbs. ART: 4.2 hrs. AST: 0 hrs. Max gas = 159 units, Avg bkgnd gas = 14 units, No conn gas. Drill 6 3/4 hole 6315'- 6608. Up. wt 125k s/o 85k. Rt. 105k. 70rpm. Tq. 6-8k. 300gpm 150spm 1650psi. Art= 3.9hrs. No gain/loss. Max gas 160 units. PJSM: Drill 6-3/4" hole f/ 6608'-6854' @ 300 gpm, 1700 psi, 2-8 klb wob, 60-70 rpm, 6-8 kft-Ibs tq, p/u 135 klbs, s/o 80 klbs, rot wt 110 klbs. ART: 4.9 hrs. AST: 0 hrs. Max gas = 163 units, Avg bkgnd gas = 12 units, No conn gas. No gains or losses Drill 6-3/4" hole f/ 6854'-7089' @ 295 gpm, 1700 psi, 3-10 klb wob, 60-70 rpm, 7-9 kft-Ibs tq, p/u 145 klbs, s/o 80 klbs, rot wt 115 klbs. ART: 5.2 hrs. AST: 0 hrs. Max gas = 118 units, Avg bkgnd gas = 12 units, No conn gas. No gains or losses. PJSM: Drill 6-3/4" hole f/ 7089'-7364' @ 303 gpm, 1750 psi, 2-10 klb wob, 60-80 rpm, 6-9 kft-Ibs tq, p/u 145 klbs, s/o 85 klbs, rot wt 115 klbs. ART: 4.4 hrs. AST: 0 hrs. Max gas = 311 units, Avg bkgnd gas = 16 units, No conn gas. No gains or losses. ECD = 9.8 ppg as per LWD. Drill 7364'- 7617' Up. Wt. 150k S/O 90k Rt. 116 Tq-6-8. 65-70rpm. Wob 4-10. 300gpm 1850psi. Art= 4.6 Ast=O Max gas 350units. Pump 6.00 ~ DRILL_ ~ ROT_ ~ PR1 DRL 1/31/2008 06:00 - 06:30 0.50 DRILL_ ROT_ PR1DRL 06:30 - 07:00 0.50 REPAIR RIG_ PR1 DRL 07:00 - 09:15 2.25 TRIP WIPR PR1 DRL 09:15 - 12:00 ~ 2.75 ~ SERVIC ~ RIG_ ~ PR1 DRL 12:00 - 14:20 ~ 2.33 ~ REPAIR ~ RIG_ ~ PR1 DRL 14:20 - 15:45 ~ 1.42 ~ TRIP_ ~ W IPR ~ PR1 DRL 15:45 - 00:00 ~ 8.25 ~ DRILL_ ~ ROT_ ~ PR1 DRL 00:00 - 06:00 ~ 6.00 ~ DRILL_ ~ ROT_ ~ PR1 DRL ~ 2/1/2008 ~ 06:00 - 12:00 ~ 6.00 ~ DRILL_ ~ ROT_ ~ PR1 DRL 12:00 - 18:00 ~ 6.00 ~ DRILL_ ~ ROT_ ~ PR1 DRL 18:00 - 00:00 ~ 6.00 ~ DRILL_ ~ ROT_ ~ PR1 DRL 00:00 - 06:00 ~ 6.00 ~ DRILL_ ~ ROT_ ~ PR1 DRL ~ 2/2/2008 ~ 06:00 - 12:00 ~ 6.00 ~ DRILL_ ~ ROT_ ~ PR1 DRL rnniea: oizaizuuc a:~°v~ rm C~ • Marathon Oil Company Operations Summary Report Page 8 of 10 Legal Well Name: PAXTON 2 Common Well Name: PAXTON 2 Spud Date: 1/7/2008 Event Name: ORIGINAL DRILLING Start: 1/4/2008 End: Contractor Name: GLACIER DRILLING Rig Release: 2/15/2008 Group: Rig Name: GLACIER DRILLING Rig Number: 1 Date From - To Hours Code ~ Code Phase 2/2/2008 06:00 - 12:00 6.00 DRILL ROT PR1DRL 12:00 - 18:00 6.00 DRILL_ ROT_ PR1DRL 18:00 - 00:00 6.00 DRILL_ ROT_ PR1DRL 00:00 - 06:00 6.00 DRILL_ ROT_ PR1 DRL 2/3/2008 06:00 - 07:00 1.00 CIRC_ MUD_ PR1DRL 07:00-07:30 0.50 TRIP_ WIPR PR1DRL 07:30 - 10:30 3.00 TRIP_ WIPR PR1DRL 10:30-13:30 3.00 TRIP_ WIPR PR1DRL 13:30 - 15:30 2.00 CIRC_ MUD_ PR1DRL 15:30 - 23:30 8.00 TRIP_ DP_ PR1 DRL 23:30 - 00:30 1.00 REPAIR RIG_ PR1DRL 00:30 - 02:00 1.50 TRIP DP PR1 DRL 02:00 - 04:30 2.50 PULD_ BHA_ PR1DRL 04:30 - 05:00 0.50 CLEAN_ RIG_ PR1DRL 05:00 - 06:00 1.00 RURD_ ELEC PR1 EVL 2/4/2008 06:00 - 13:00 7.00 LOG_ OH_ PR1EVL 13:00 - 15:45 2.75 PULD LOG PR1EVL 15:45 - 18:00 2.25 TRIP_ TOOL PR1EVL 18:00 - 20:00 2.00 TRIP_ TOOL PR1 EVL 20:00 - 23:30 3.50 TRIP_ TOOL PR1EVL 23:30 - 01:30 2.00 CIRC_ MUD_ PR1EVL 01:30 - 03:00 1.50 LOG OH PR1 EVL Description of Operations sweep at 7530', Sweep returned as calculated ,with increase in cuttings of 50%. Add 1 % Lubetex, torque decreased f- 9-10 to 6-8k. PJSM: Drill 6-3/4" hole f/ 7617'-7907' @ 295 gpm, 1800 psi, 2-10 klb wob, 80 rpm, 6-8 kft-Ibs tq, p/u 153 klbs, s/o 96 klbs, rot wt 122 klbs. ART: 5.0 hrs. AST: 0 hrs. Max gas = 145 units, Avg bkgnd gas = 16 units, No Conn gas. No gains or losses. ECD = 10.1 ppg (PWD). Drill 6-3/4" hole f/ 7907'-8233' @ 300 gpm, 1850 psi, 2-10 klb wob, 80 rpm, 8-9 kft-Ibs tq, p/u 155 klbs, s/o 100 klbs, rot wt 127 klbs. ART: 4.5 hrs. AST: 0 hrs. Max gas = 145 units, Avg bkgnd gas = 18 units, No conn gas. No gains or losses. ECD = 10.2 ppg (PWD). PJSM: Drill 6-3/4" hole f/ 8233'-8436' @ 300 gpm, 2000 psi, 2-10 klb wob, 70-80 rpm, 8-10 kft-Ibs tq, p/u 160 klbs, s/o 100 klbs, rot wt 128 klbs. ART: 5.1 hrs. AST: 0 hrs. Max gas = 155 units, Avg bkgnd gas = 20 units, No conn gas. No gains or losses. ECD = 10.2 ppg (PW D). Reached T.D. @ 06:00 hrs. Circulate B/U for T/D samples for MOC Geo. Dept. at 8436'. Monitor well, Pull 5 stands, Flow Ck.Pump dry job. Blow down mud lines. POH Wiper Trip F- 8036'-5445 Clean up tight hole at 6958',6194' 6063' and 6034' Wipe all over pulls of 20k. Hole in good condition. No gain/loss. Correct hole fill. (Near miss) Hook failed on retainer strap holding back drill pipe spinners. RIH f- 5445' to 6375' Wash f- 8375' to 8436' Tag Bolton No fill. No gain/ loss. Clean up ledges at 6340', 6556,7147, 7362' (coals) Circulate Pump Sweep and condition hole for logs at 8436'. B/U gas 210units Mud weight 9.4ppg. Large amounts of stuffing coals over shakers. Continue circ until shakers cleaned up. PJSM: Monitor well, Pump dryjob. Pooh f/8436'-1949'. (SLM). Hit tight spot @ 4802 4796'. Pulled 35 klbs over.Little movement down or up. Wash and ream out/ free up pipe Continue to POH hole slick Replace safety latch pin on elevators. PJSM: Con't POOH f/ 1949'-147'. (SLM). No correction. Proper fillup. No gains or losses. PJSM: Lay down XO sub, (2) non-mag drill collars, LWD, pony collar, string stab, mud motor & bit. Download LWD data. Clear & clean rig floor. Blow down mud lines. PJSM w/ Weatherford wireline: Rig up to run quad-combo loos. PJSM: Rig up and run Weatherford wire line S/ quad combo logging suite. Monitor well with trip tank . Hit coal ledge at 6678' wlm. attempt to work through No Gp Log from 6625'-3904' POH with a-line and ria down. PJSM: P/U and M/U Shuttle assy to run quad combo tools on shuttle system. Install Quad combo tools inside shuttle assy. PJSM: Rih with Shuttle assy to 739'. Pressure check shuttle tool @ 2, 4 & 6 bbl/min. Blowdown mud lines. PJSM: RIH w/ 4" drill pipe to f/ 739'-3900'. Pressure check shuttle tool @ 2, 4 & 6 bbl/min. Blowdown mud lines. PJSM: RIH w/ 4" drill pipe to f/ 3900'-8436'. Pressure check shuttle tool @ 2, 4 & 6 bbl/min. Tight spots @ 6030' & 6203'. Washed through each w/ 200 gpm & 30 rpm. Went down w/o any problem. Blowdown mud lines. No fill on bottom. No gains or losses. PJSM: Circulate until hole clean @ shakers. Trip gas = 228 units. PJSM: Space out off bottom to deploy shuttle tool. Tight w/ picking up. Printed: 5/29/2008 3:25:02 PM Marathon Oil Company Page 9 of 10 Operations Summary Report Legal Well Name: PAXTON 2 Common Well Name: PAXTON 2 Spud Date: 1/7/2008 Event Name: ORIGINAL DRILLING Start: 1/4/2008 End: Contractor Name: GLACIER DRILL ING Rig Release: 2/15/2008 Group: Rig Name: GLACIER DRILL ING Rig Number: 1 Date From - To Hours Code Pflase Description of Operations Code 2/4/2008 01:30 - 03:00 1.50 LOG_ OH_ PR1 EVL Pump out 2 stds. Lost pressure prematurely f/ 1100 psi to 650 psi. Pump messenger dart. Did not bump at calculated pump strokes. Pump dry job & blowdown mud lines. 03:00 - 06:00 3.00 LOG_ OH_ PR1 EVL PJSM: POOH while logging w/ quad-combo shuttle assv f/ 8421'-5600' 35'/min. 2/5/2008 06:00 - 07:45 1.75 LOG_ OH_ PR1EVL Continue Quad combo logging on shuttle system F- 5600'- 3800' 07:45 - 10:30 2.75 TRIP_ DP_ PR1EVL POH with shuttle assy. on drill pipe f/ 3800' logging complete. 10:30 - 11:30 1.00 TRIP_ TOOL PR1 EVL Lay down Shuttle assy. 11:30 - 12:30 1.00 LOG_ OTHR PR1 EVL PJSM:Unload Source, break down quad combo tools. Lost 8.52'Of sonic tool 2.14' of Compact inline standoff sub 10.81' of Compact Induction tool and 1.99' Of Induction stand off assembly. Total of 23.46' 12:30-13:00 0.50 BLOWD EQIP PR1EVL 13:00-16:15 3.25 CUT_ WIRE PR1EVL 16:15 - 17:15 1.00 PULD_ LOG_ PR1 EVL 17:15 - 21:00 3.75 LOG OH PR1 EVL 21:00 - 03:00 6.00 WAITON EQIP PR1EVL 03:00 - 06:00 3.00 PULD_ LOG_ PR1 EVL 2/6/2008 06:00 - 13:00 7.00 LOG OTHR PR1EVL 13:00 - 14:15 1.25 CIRC_ MUD_ PR1 EVL 14:15 - 15:00 0.75 LOG_ OH_ PR1 EVL 15:00 - 23:00 8.00 LOG_ OH_ PR1 EVL 23:00 - 00:00 1.00 PULD_ LOG_ PR1 EVL 00:00 - 02:00 2.00 RURD_ CSG_ PR1 EVL 02:00 - 05:00 3.00 LOG_ OH_ PR1 EVL 05:00 - 06:00 1.00 CIRC_ MUD_ PR1EVL 2/7/2008 06:00 - 09:00 3.00 LOG_ OH_ PR1 EVL 09:00 - 12:45 3.75 LOG_ OTHR PR1 EVL 12:45 - 13:30 0.75 CIRC_ MUD_ PR1EVL 13:30 - 15:00 1.50 RURD ELEC PR1EVL 15:00 - 23:30 8.50 LOG_ OH_ PR1 EVL Blown down mud lines, Clean clear rig floor PJSM: Slip and cut drilling line, make double cut. Total of 400' PJSM ;P/U and M/U quad combo logging tools. PJSM: RIH w/quad-combo logging tools on wireline. Hit bridge @ 5880' wlm. Attempt to work through. No go. POOH w/ wireline. Lay down tools & rig down. Monitor well f/ trip tank. No gains or losses. Wait on wireline tools. Rebuild shuttle tools @ Weatherford shop. Service rig w/ waiting. Take measurements for manriders. Fuel all equipment. PJSM: P/U & M/U quad-combo shuttle assy. Lay down jars(run bumper sub only). RIH to 836'. Pressure check shuttle tool @ 2, 4 & 6 bbl/min. Continue RIH with shuttle assy. Stop and establish tool pressures at 836',3900',5900' and 6690' Set down on ledges with 10k then criculate and rotate to work through at 6695' 7254' and 7652'. rih to 8300'. No gain/ Loss Circulate B/U at 8300'-8326'104spm 210gpm 1085 psi. Small coals and sand. Up wt. 165k Down Wt 90k. B/U gas 40 units. Pull up to 8195' Place messenger dart in drillpipe. Pump dart down at 127spm 1295psi,at 1300stks reduce pump rate to 42spm 388psi. at 1656stks pressure dropped to 202psi/ confirmed latch up of dart in upper latch assy and logging tools deployed. Increase pump rate to 52spm pressure increased to 700psi then to 65spm, pressure increased to 875psi. Increase pump rate to 75spm 975psi. At 975psi circulating sub opened and pressure dropped to 350psi. Pump dry job, blow down mud lines. P_01-I and run Quad Combo loges on drillpipe shuttle svstem from 8295'(bottom of deployed logging tools) at 35' min POOH w/quad-combo to gin tools 30 ft/min f/ 8195'-3603'. Then pull (a) 60 ft/min f/ 3603' to surface. Proper fill up. No gains or losses. PJSM: L/D quad-combo logging tools from shuttle assy. All tools in tact & data aquisition complete. PJSM: R/U to run 4-1/2" Hydril 563 csg for RFT logging. PJSM w/ Weatherford &Hydril. RIH w/ 97 jts of 12.6 Ib/ft, L-80 Hydril; 563 csg to run RFT logs through. circulate @ 3902' w/ waiting for pressure pick points. Continue to circ.at 3950' wait on log evaluations for RFT pick points. RIH with 4 1/4 csg. f 3950' to 6772' and park casing for RFT logging. No Gain Loss Circulate and condition mud For RFT logging at 6772' PJSM; Rig up Weatherford Circulation head, sheaves and wire line. P/U RFT tools. C/O safety valve, Install pack off. PJSM: RIH with RFT tools on E-Line. Hit bridge @ 7790'. Work on Printed: 5/29/2008 3:25:02 PM Marathon Oil Company Operations Summary Report Page 10 of 10 ~ Legal Well Name: PAXTON 2 Common Well Name: PAXTON 2 Spud Date: 1/7/2008 Event Name: ORIGINAL DRILLING Start: 1/4/2008 End: Contractor Name: GLACIER DRILLING Rig Release: 2/15/2008 Group: Rig Name: GLACIER DRILLING Rig Number: 1 Date From - To Hours Code Sub Phase Description of Operations Codei 2/7/2008 ~ 15:00 - 23:30 ~ 8.50 ~ LOG_ ~ OH_ ~ PR1 EVL ~ bridge. No go. Log f/ 7632'-6911'. Got 26 successful tests of 38 total 23:30 - 01:30 2.00 LOG_ OTHR PR1 EVL 01:30 - 03:30 2.00 CIRC_ MUD_ PR1 EVL 03:30 - 04:30 1.00 LOG_ OTHR PR1 EVL 04:30 - 06:00 1.50 LOG_ OH_ PR1 EVL 2/8/2008 06:00 - 10:30 4.50 LOG OH PR1 EVL 10:30 - 11:30 1.00 CIRC_ MUD_ PR1EVL 11:30-14:30 3.00 LOG_ OH_ PR1EVL 14:30 - 23:00 8.50 TRIP_ TOOL PR1 EVL 23:00 - 06:00 7.00 TRIP_ TOOL PR1 EVL 2/9/2008 06:00 - 07:30 1.50 TRIP_ TOOL PR1 EVL 07:30 - 08:30 1.00 CIRC_ MUD_ PR1 EVL 08:30 - 09:30 1.00 TRIP_ TOOL PR1EVL 09:30 - 16:30 7.00 LOG_ OH_ PR1EVL 16:30 - 20:00 3.50 LOG OH PR1 EVL 20:00 - 04:00 8.00 LOG_ OH_ PR1 EVL 04:00 - 06:00 2.00 TRIP_ DP_ PR1 EVL 2/10/2008 06:00 - 08:00 2.00 TRIP DP PR1EVL PJSM w/ Weatherford &Hydril. R/U & RIH w/ 33 jts of 12.6 Ib/ft, L-80 Hydril 563 csg f/ 6772'-8130'. PJSM: R/U &CBU 2x @ 8130'. Hole unloaded w/ huge amounts silt & big chunks coal. Continued circulating until clean @ shakers. Max gas = 68 units. PJSM: POOH w/ 6 jts 4-1/2" casing to 7875' to run RFT logs. PJSM: R/U &RIH with RFT tools on E-Line. Continue run in hole with RFT logging tools inside with 4 1/2 csg. parked at 7875' Tool unable to exit shoe at 7875' Work tool and attempt to pump down with no success. POH with a-Line and Lay down Rig up top drive and circulate Casing 3575stks at 254gpm 525psi. while reciprocating casing. No bridges or ledges. Park pipe during circulating at 7880'. No gain losses. Rig up rh tools and rih, inside 4 1/2 casing to 7880'. Tools unable to work through Shoe at 7880' Poh with a-line and lay down tools. Rig down sheaves and a-line PJSM; Poh and lay down 4 1/2 casing. Stop and pump dry job, pipe pulling wet. Blow down mud lines. Continue POH F-7580'. Found 4-1/2" liner shoe slightly pinched. Lay out & caliper damaged component. I.D. = 3-5/8". No damage found to any full length joints of casing. PJSM: P/U muleshoe / wireline entry guide &RIH w/drifting 4-1/2" pipe (2-1.3/16" rabbit) to 7200'. Break circulation @ 5822'. RIH w/drifting 4-1/2" pipe (2-13/16" rabbit) f/ 7200'-8130'. Work tight spot at 7833' and 8080' No gain /Loss CBU @ 8130'. At 130spm 466psi 256gpm. Hvy silt and coals returned over shakers, Circ. until shakers cleaned up. , Blow down mud lines, pull 6 joints f-8133' to 7880' and park 4 1/2 casing PJSM; R/U circ. head and Weatherford wire line pack off and E- line sheaves, RIH with rh tools on E- line inside 4 1/2 casing. Run RFT loags from 8126'- 7905'. All test points were successful. POH with a-line inside 4 1/2 casing.. Lay down RFT tools and rig down e- line sheaves and pack off. Pump dry job POH with 4 1/2 casing f-7882' to 3965' and park pipe for rFt logging. PJSM; R/U Wireline sheaves and tools,RlH with MFT, log up from 5741'. PJSM; POOH Laying down 4 1/2 casing f/ 3969' Continue to poh with 4" drillpipe f-1788' lay down mule shoe, clean clear rig floor. Move to completion phase at 0800hrs 2/9/2008 Printed: 5/29/2008 3:25:02 PM Marathon Oil Company Page 1 of 3 Operations Summary Report Legal Well Name: PAXTON 2 Common Well Name: PAXTON 2 Spud Date: 1/7/2008 Event Name: ORIGINAL COMPLETION Start: 1/30/2008 End: Contractor Name: GLACIER DRILLING Rig Release: 2/15/2008 Group: Rig Name: GLACIER DRILLING Rig Number: 1 Phase Description of Operations Date From - To Hours Code ~ Code 2/10/2008 08:00 - 11:00 3.00 RURD_ CSG_ PRICSG PJSM;Rig down Weatherford tongs and elevators. Change out bails. Install drillpipe elevators. 11:00 - 13:00 2.00 REPAIR RIG_ PR1CSG Boiler shut down Troubleshoot and repair. Blow down all steam and water lines while repaving boiler. Tempture 5 degrees and wind 13:00 - 19:30 6.50 REPAIR RIG_ PR1 CSG PJSM;BIow down choke manifold, choke line,drain stack, blow down kill line, thaw frozen valves, clean rig floor. Work on air slips, Boiler fired up at 1800 hrs. Get heat to rig and sub base. 19:30 - 23:30 4.00 TEST_ BOPE PR1CSG PJSM;Pick up test joint, pull wear bushing install test plug. Test BOBE and all related components 250/2500psi 5 min. Test pvt, flow ,gas alarms an accumlator raw down test. All components passed. Witness waved by Lou Grimaldi AOGCC 2/08/08 17:30hrs 23:30 - 00:00 0.50 BLOWD EOIP PR1CSG Blow down rig equip. 00:00 - 05:00 5.00 TRIP_ DP_ PR1CSG PJSM;Pick up 6 3/4 Clean out assy.RlH to 3902' Break circ. cont. to RIH to 7835'tag bridge. 05:00 - 06:00 1.00 CLNOU OH_ PR1CSG Wash and ream from 7835' to 7920" 2/11/2008 06:00 - 07:00 1.00 TRIP_ DP_ PR1CSG Continue to rih f-7920' wash and ream to 8400', no gain/loss Hole in Good Condition 07:00 - 08:30 1.50 CIRC_ MUD_ PR1CSG Circulate and condition Mud. at 8400'. Hvy silt, sand and coals on inital circulation. Continue to Circulate until shakers cleaned up at 7956 stks.Max gas 168units. Run centrifuge van. Final mud wt. 9.5 08:30 - 14:15 5.75 TRIP_ DP_ PR1 CSG Monitor well, Pump dry job, blow down mud lines. POH from 8400'. Work and clean up tight hole at 7877 to7860'. No gain/ loss. 14:15 - 16:00 1.75 TRIP_ BHA_ PR1CSG POH L/D hwdp ,jars and drill collars Stab bit sub and break out bit. 16:00 - 18:30 2.50 RURD_ CSG_ PR1CSG PJSM;C/O Bails and elevators. Replace savor sub Replace guard on top drivre Make up TD head. Rig Weatherford tongs and elevators. 18:30 - 19:30 1.00 RURD_ CSG_ PR1CSG PJSM: R/U Weatherford to run 4 1/2 liner Bring cent. to rig floor.Make up floor valve. 19:30 - 01:30 6.00 RUN_ CSG_ PR1CSG Pick up shoe track. Check floats. RIH with 4 1/2-12.6# 563 hvdril liner. To 3902' RIH W/ 4 1/2 12.6# L-80 Hydril 563 Liner 01:30 - 03:00 1.50 CIRC_ MUD_ PR1CSG Rig up and Break circ., pump liner volume 65 bbls. 03:00 - 04:00 1.00 RUN CSG PR1CSG Cont. to run in hole from 3902' with 4 1/2-12.6# 563 h dri li 04:00 - 05:30 1.50 _ RURD_ _ OTHR PR1CSG Change out long bails to short bails and rig up drill pipe elevators. Circ. while changing out equip. 190 stks.= 310 psi Up wt.=70K Dn. wt.=48K Blow down lines. 05:30 - 06:00 0.50 RUN_ CSG_ PR1CSG Pick u 7 5/8 X 5 1/2 liner han er. Make u to 4 1/2 liner. 2/12/2008 06:00 - 09:00 3.00 RUN_ CSG_ PR1CSG Complete installation of liner hanger, Run in hole with 4 1/2 liner on drill pipe f- 4698. Run in hole at reduced Rate to minimize hole surge. Stop at 7222' 09:00 - 09:30 0.50 CIRC_ MUD_ PR1CSG Circ. 3000 stks. @7222', 82 spm, 340 psi, Up wt.=115K Dn wt.=70K 09:30 - 12:00 2.50 RUN_ CSG_ PR1CSG Cont. RIH w/ 4 1/2 liner f/7222' to 8336'( tight spots at 7844', 8336', 8348') No gain/ loss Circulate and clean up 7844'-7465' and 8336'-8344' Attem ed to Rotate, Torque exceding limit of 6000k. Make up torque on 4 1/2 liner 12:00 - 12:30 0.50 CIRC_ MUD_ PR1CSG Circ. condition mud.at 8385' at 3bbls min 456psi. reciporcate pipe to prevent pack off at liner top , 12:30 - 13:00 0.50 RURD_ CMT_ PR1CSG Rig up Top drive cmt. hd. and cement lines. 13:00 - 14:30 1.50 PUMP_ CMT_ PR1CSG Circ. while batch mixing cement. PJSM. 14:30 - 17:30 3.00 PUMP CMT_ PR1CSG Test lines to 4500 psi, Pump 20 bbls.Sealbond spacer, 10.0#, 284 sacks Class"G" cement, 22% LW-7-6, 15%BA-90, 1%CD-32, .5% SMS, 1.2% FL-52, .05%Static Free, .1 % R-3, 1 ghs Fp-6L. 10.5# Yield 2.987 cufUsk, 12.361 gal/sk, 5:05 thickening time. 210 barrels slurry, 116 barrels water to mix. Drop plug with 5 bbls. water, displace with 113 bbls. KCL Bump plug with 1900 psi. CIP .1715 hrs.Recipicate liner thru Printed: 5/29/2008 3:25:08 PM Marathon Oil Company Operations Summary Report Legal Well Name: Common Well Name Event Name: Contractor Name: ,Rig Name: PAXTON 2 PAXTON 2 ORIGINAL COMPLETION GLACIER DRILLING GLACIER DRILLING Date From - To Hours , Code Code Phase 2/12/2008 14:30 - 17:30 3.00 PUMP_ CMT_ PRICSG 17:30 - 18:30 1.00 SETREL LNR_ PR1CSG 18:30 - 19:30 1.00 PUMP_ CMT_ PRICSG 19:30 - 20:00 0.50 RURD_ CMT_ PR1CSG 20:00 - 00:00 4.00 TRIP DP PR1 CSG 00:00 - 06:00 ~ 6.00 ~ WAITON~ CMT_ ~ PRICSG 2/13/2008 06:00 - 14:00 8.00 WAITON CMT_ PRICSG 14:00 - 15:30 1.50 TRIP_ DP_ PRICSG 15:30 - 17:00 1.50 WAITON CMT_ PR1CSG 17:00-17:30 0.50 TRIP_ DP_ PR1CSG 17:30 - 18:30 1.00 CIRC_ MUD_ PRICSG 18:30 - 20:30 2.00 TRIP_ DP_ PR1CSG 20:30 - 00:00 3.50 TRIP DP PR1TIE 00:00 - 02:30 ~ 2.50 ~ SETREL ~ PKR_ ~ PR1TIE 02:30 - 04:00 1.50 CIRC_ MUD_ PR1TIE 04:00 - 05:00 1.00 TEST_ CSG_ PR1TIE 05:00 - 05:30 0.50 BLOWD EOIP PR1TIE 05:30 - 06:00 0.50 TRIP_ DP_ PR1TIE 2/14/2008 06:00 - 08:30 2.50 TRIP_ DP_ PR1TIE 08:30 - 09:00 0.50 RUNPU WBSH PR1TIE 09:00 - 11:30 2.50 RURD_ CSG_ PR1TIE 11:30 - 12:00 0.50 RUNPU TBG PR1TIE 12:00 - 17:30 5.50 RUNPU TBG PR1TIE 17:30 - 19:30 ~ 2.00 ~ RUNPUy TBG_ ~ PR1TIE 19:30 - 20:30 1.00 CIRC_ CFLD PR1TIE 20:30 - 21:30 1.00 TEST_ TBG_ PR1TIE 21:30 - 06:00 I 8.501 NUND I BOPE I PR1TIE 12/15/2008 ~ 06:00 - 02:00 ~ 20.00 ~ RURD_ RIG_ ~ RDMO Page 2 of 3 Spud Date: 1 /7/2008 Start: 1/30/2008 End: Rig Release: 2/15/2008 Group: Rig Number: 1 Description of Operations Set liner hanger, pressure to 4000 psi and also left hand safety off liner. Pick up 20 ft. and circ. out cement. Got 25 bbls. cement to surface. Pump dry job and rig down cement head, lay down. PJSM; POOH and lay down drillpipe with liner running tool,spot concur 404 with dry job. PJSM;WOC, Break down liner running tool, and cement hd.,spray and flush BOPE,BIow down all mud lines,choke and kill line, service carrier, blocks, crown,Clean trip tank and cellar, clean mud dump lines, Haul mud to G&I plant, clean pits, Install guard on top drive, work on manriders. Continue WOC ,Adjust Brakes and work on man riders. Clean pits Make up Baker 5.685 polish mill,crossover and float sub RIH to 3300'. Wait on cement. Clean pits. PJSM;RIH w/ drill pipe to 3685; Poilsh liner tie back sleeve. Circ. Bottoms up. Mix and pump dry job, blow down mud lines. PJSM; POOH with 4" drill pipe lay down polish mill. PJSM; Pick up and make up ZXP liner packer assy.RlH with 4" drill pipe to 3685' PJSM; Rig up BJ cementers to set packer.Set packer at 3667'Shear rupture disc. at 4500 psi, release from packer.Saw good indication. Pump dry job. POOH L/D drill pipe to 2243'. Test csg. to 1500 psi for 30 min. Blow down mud lines. POOH lay down 4" drill pipe. POOH with ZXP running tool UD drill pipe and tool M/U test joint, pull wear bushing Rig down Change out bails and Elevators. R/U Weatherford tools PJSM: Make dummy run with 4 1/2 tubing hanger. Inspect O-rings and plugs. RIH w/4 1/2 12.6# L-80 Hvdril 563 tubing To 1270' Install chemical iniection mandrel and rig up pollard sheave for chemical line. test line to 2500psi/10min. Hold 500psi on line. Continue rih with 4 1/2 tubing. to top of zxp packer at 3667' Lay down (2) joints 4 1/2 tubing, Space out tubing hanger, install pups. and tubing hanger.Terminaite chem. injection line. (123) bands in hole. Rig up and displace completion brine, with congor 303, on annulus. Land Vetco Grey MB235 4 1/2 IBT X 4 1/2 563 Hydril Tubing hanger. Test hanger seals to5000 psi for 10 min, test tie back and tubing to 500 psi for 10 min.Rig down and blow down lines. Rig down sheave from derrick, Lay down landing joint. PJSM: Install BPV rig down mouse hole, drip pan, fill up line bleeder,trip tank lines, rig up bridge cranes.lnstall plug in annular bag, with 200 psi on closed side. Rig up and move out BOPE stack, spacer and DSA. Rig up to install production tree, cleaning pits. Test void and neck seals to 5000 psi. 15 min., Pull BPV install two wav check_.Test tree to 5000 psi 15 min.Pull two wav check and install BPV. PJSM;CIear floor of drilling tools, tongs, spinners, wash out top drive, push in cellar bridge cranes, and crane beams. Pull out flow lines, pull hoses and power. Rig down top drive. Weekly safety meeting.PJSM;Finish cleaning pits.Unhang top drive set in rack. Check (tugger lines and lay down, top drive.PJSM;Remove turnbuckles, Printed: 5/29/2008 3:25:08 PM Marathon Oil Company Legal Well Name: Common Well Name: Event Name: Contractor Name: Rig Name: Page 3 of 3 Operations Summary Report PAXTON 2 PAXTON 2 Spud Date: 1 /7/2008 ORIGINAL COMPLETION Start: 1/30/2008 End: GLACIER DRILLING Rig Release: 2/15/2008 Group: GLACIER DRILLING Rig Number: 1 Date I From - To I Hours I Code 2/15/2008 106:00 - 02:00 I 20.00 Sub Phase Code RIG_ ~ RDMO 02:00 - 06:00 4.00 RURD_ RIG_ RDMO 2/16/2008 06:00 - 18:00 12.00 RURD_ RIG_ RDMO Description of Operations unhang and lay down torque tube, "T" bar.Rig down mud manifold, fill up, bleeder, kill line, choke line. Remove cylinder socks. Rig down derrick board untie lines in derrick f/ geolograpgh.Pickle pumps #1&2.Rig down choke lines to floor and poor boy gas buster.Remove tarps and bows for carrier.Load out bBaker and Epoch shacks. Rig down stairs, lay down beaver slide. Freeze protect drawworks.Change oil #1 gen.Transfer fuel to camp gen. and fuel rig equip. Rig down derrick board, prep to scope down derrick.Scope down derrick.Shut in boilerandblow down lines, rig down lines. Rig down lights off top dog house, unplug and roll up wires, drillers side dog house.Take off brake handle and tie bottom brake handle to scope down derrick. Rig down drillers console.Orginize trailers on location. Prep for crane work. Wait on wind for crane operations. Blow down water, Pull water from boiler, condensate tank, and blow down tank. Disconnect hyd. lines on rig floor, knock loose and store shock hoses, knock loose 4" stand pipe and 2" cmt. line from derrick.Rig down air from rig. PJSM; Crane operations ;Move out conex, back wind walls, floor piece, carver to drill side dog house stairs and landing, flow line, offside carrier stairs, offside doghouse.PJSM; Crane gray iron, doghouse, stairs, windwalls, derrick house and fuel tank.PJSM; Lower derrick and prep carrier for move. Pull wire for pump room to gen,lay down handrails, split pits and pump room. Move pits, pump room, water tank, boiler room, gen. mech. shop and parts house.Release Rig to GO-7 1800 Hrs. Printed: 5/29/2008 3:25:08 PM Marathon Oil Company Page 1 of 13 Operations Summary Report Legal Well Name: Common Well Name: Event Name: Contractor Name: Rig Name: PAXTON 2 PAXTON 2 ORIGINAL COMPLETION GLACIER DRILLING GLACIER DRILLING Date From - To Hours Code Code Phase 2/20/2008 09:00 - 09:30 09:30 - 10:00 10:00 - 10:30 10:30 - 11:00 11:00 - 13:00 13:00 - 16:00 16:00 - 16:30 16:30 - 17:00 2/27/2008 09:00 - 09:30 09:30 - 16:00 16:00 - 16:30 16:30 - 17:00 2/28/2008 08:00 - 08:15 08:15 - 09:00 09:00 - 12:00 12:00 - 13:30 13:30 - 16:30 16:30 - 20:15 20:15 - 21:15 21:15 - 22:00 3.00 ~ TEST_ ~ BOPE ~ CTBG 1.50 ~ TRIP_ ~ BHA_ ~ CTBG 3.00 ~ DRILL_ ~ CMT_ ~ CTBG 3.75 ~ JET_ ~ N2_ ~ CTBG 1.00 JET_ N2_ CTBG 0.75 SECUR WELL CTBG Spud Date: 1 /7/2008 Start: 2/6/2008 End: Rig Release: 2/15/2008 Group: Rig Number: 1 Description of Operations Arrive location, Vetco removing back pressure valve from tree. PJSM with Expro. weather conditions 33 deg F, raining. Slips /trips / falls. Overhead loads, positioning of logging unit, crane, pressure, 2 barriers, muster area. Construction area adjacent to wellhead Combined safety mtg with adjacent construction crews and supervisors. Hazards on both sites, where to stay clear of. Crane possible overlap prevention. Pressure Rig up wireline well control iron, check tool Software problems with CBL / GR. 2 hours LT Run CBL from 8091 to 3600 feet (60 feet above packer and liner hanger). NOTE : PBTD should have been 8340. When the primary cement job was run, the plug latched into the float shoe as designed. The rig then pressured up and set the tubing anchor but was unable to release the setting tool. They had to mechanically release the tool and then had to work the pipe to release from the anchor. This allowed some of the cement returns from above the anchor to drop down into the cemented casing. Approx. 25 BBL of cement above the anchor was then circulated out of the hole. I do not believe that there is a problem with the float collar and the cement behind pipe is excellent as is the sections looped. The bottom rat hole needs to be cleaned out but I do not recommend re-running the CBL/ GR to get the CBL data over that section. pull logging tool out of hole Rig down Expro cased hole logging tools and wellhead equipment. Double. check wellhead valves, install night cap. Leave location filled out JSA, topics -slips /trips /falls, overhead work, pinch points, fire watch, active gas production pad -red lights for fire, blue lights for gas release, sirens, use buddy system, 3 second rule, muster point, pressure, nitrogen -cold Start rip up of CTU, crane, tanks, gas buster. Set up for BOP test Finish BOP test -test aood Rig down and secure well for the night Start Equipment filled out JSA, topics -slips /trips /falls, overhead work, pinch points, fire watch, active gas production pad -red lights for fire, blue lights for gas release, sirens, use buddy system, 3 second rule, muster point, pressure, nitrogen -cold Rig up injector head, fill tubing, pressure test 350 low / 4500 high. Test good Trip in hole with mill 3.75"OD. Went through chem inj. nipple at 2418' no problem, no problems throught packer. Did not see cement top at 8100 feet where CBL tool stopped Mill cement and circulate down to 8273'. Tool stopped at 8171 and circulated down to 8273. Ve hard. Circulated 2 hole volumes (50 BBL). Dropped ball to shift sleeve. Pumped 25 BBL KCL water until returns clean to tank. Pulled coil up to 4500 feet. Started N2 lift 2000# of KCL fluid N2 to surface at 17:30. drop rate to 500 scf /min. drop to bottom. increase rate to 1200 scf/min to lift bottom 3773 feet of KCL water. Water returns at 19:15. Start coil out of hole. Pulled some weight at 8100 feet. Back to surf w/ dry N2 at 20:15 Pressure u casin to 1200#. Ran out of N2 well head ressure 550# Rig down for the evening. Release coil crew. Finish pressuring up 0.50 WAITON EOIP WRLN 0.50 SAFETY MTG_ WRLN 0.50 ~ SAFETY MTG_ ~ WRLN 0.50 LOG_ CSG_ WRLN 2.00 LOG_ CSG_ WRLN 3.00 LOG_ CSG_ WRLN 0.50 LOG_ CSG_ WRLN 0.50 PULD_ LOG_ WRLN 0.50 ~ SAFETY ~ MTG_ ~ CLNOUT 6.50 MOB RIG_ CTBG 0.50 TEST_ BOPE CTBG 0.50 SECUR WELL CTBG 0.25 CLNOU CSG_ CLNOUT 0.75 SAFETY MTG CLNOUT Printed: 5/29/2008 3:25:10 PM • Marathon Oil Company Page 2 of 13 Operations Summary Report Legal Well Name: PAXTON 2 Common Well Name: PAXTON 2 Event Name: ORIGINAL COMPLETION Contractor Name: GLACIER DRILLING Rig Name: GLACIER DRILLING Date From - To Hours ~ Code Code Phase 2/28/2008 21:15 - 22:00 0.75 SECUR WELL CTBG 22:00 - 23:59 1.98 CLEAN_ TANK OTHER 3/2/2008 08:00 - 08:15 0.25 CLNOU CSG_ CLNOUT 08:15 - 09:00 0.75 SAFETY MTG CLNOUT 09:00 - 11:00 2.00 PUMP N2 CTBG 11:00 - 12:00 1.00 RURD COIL CTBG 3/7/2008 08:00 - 08:30 0.50 LOG_ CSG_ WRLN 08:30 - 09:15 0.75 SAFETY MTG WRLN 09:15 - 10:15 1.00 TEST_ WLHD WRLN 10:15 - 13:20 3.08 RUNPU ELEC WRLN Spud Date: 1 /7/2008 Start: 2/6/2008 End: Rig Release: 2/15/2008 Group: Rig Number: 1 Description of Operations casing on Saturday Slop tank valve developed leak in rental tank valve when filled with KCL water. Tralnsferred one truck load of KCL water to gas field for disposal. Transferred rest of tank to supply tank. Containment liner developed leak. Contacted environmental spills - JJ Jacinsky. Vacuumed up approx. 2 gallons KCL water to supply tank. Secured location, released vac truck, turned off light plant. Notified site operator completion done for evening. Leave location. Start Equipment filled out JSA, topics - slips J trips /falls, overhead work, pinch points, fire watch, active gas production pad -red lights for fire, blue lights for gas release, sirens, use buddy system, 3 second rule, muster point, pressure, nitrogen -cold. Pressure test lines to 4500# Continue oressurinq up casina to 1200#_ Rig down auxillary equipment during pumping of N2. Shut in well. Remove CTU BOP from wellhead, secure well, rig down auxillary equipment Arrive at location, spot equipment obtained work permit,held PJSM, topics -slips /trips /falls, overhead work, pinch points, fire watch, active gas production pad -red lights for fire, blue lights for gas release, sirens, use buddy system, 3 second rule, muster point, pressure, nitrogen -cold. Pressure testing wellhead equipment. Make up lubricator to wellhead and pressure test to 1600#. Test good RIH with PT tool. Tagged bottom at 8262' MD. Found fluid level at 8136' Bottom hole pressure 1996.4 psi. Wellhead pressure 1570 osi , 13:20 - 14:30 I 1.171 RURD I ELEC I WRLN ~ 3/8/2008 ~ 09:00 - 10:30 ~ 1.50 ~ SAFETY ~ MTG_ ~ WRLN 10:30 - 13:00 2.50 RURD ELEC WRLN 13:00 - 13:30 0.50 TEST WLHD WRLN 13:30 - 15:30 2.00 PERF_ CSG_ WRLN 15:30 - 16:00 0.50 PULD_ PGUN WRLN 16:00 - 16:30 0.50 SECUR WELL WRLN 3/9/2008 09:00 - 10:00 1.00 SAFETY MTG_ WRLN 10:00 - 10:30 0.50 RURD_ ELEC WRLN 10:30 - 11:00 0.50 TEST_ WLHD WRLN 11:00 - 13:00 2.00 LOG_ CSG_ WRLN Out of Hole. Rig down wellhead equipment. Secure wellhead for evening. Sign out, tum in work permit, leave location obtained work permit at SD pad, held PJSM, topics -slips /trips /falls, overhead work, pinch points, fire watch, active gas production pad -red lights for fire, blue lights for gas release, sirens, use buddy system, 3 second rule, muster point, pressure, nitrogen -cold. Pressure testing wellhead equipment. Finished PJSM at Paxton Pad with flowback crew, pad operators Rig up wireline, flowback iron, sand separator, lubricator Pressure test well head /lubricator 200 / 3600 # good. Pressure test flowlines - 1500 # -good Trip into hole to perforate 8032' - 8052'. Tie into Expro CBL / GR / CCL dated 2-19-08. Pressure on wellhead 1025# After perforate 1100# Lay down perforating guns, lubricator, secure wellhead for evening, turn well over to production operators. W H pressure maximum observed 1400# and building slightly. signout, turn in work permit for evening obtained work permit at SD pad, held PJSM, topics -slips /trips /falls, overhead work, pinch points, fire watch, active gas production pad -red lights for fire, blue lights for gas release, sirens, use buddy system, 3 second rule, muster point, pressure. Pressure testing wellhead equipment. Finished PJSM at Paxton Pad with pad operators Rig up wireline, lubricator Pressure test well head /lubricator 200 / 3600 #- good. Trip into hole to log fluid level after perforating 8032' - 8052' on 3-7-2008. Fluid level at 3150 feet Printed: 5/29/2008 3:25:10 PM • Marathon Oil Company Page 3 of 13 Operations Summary Report Legal Well Name: PAXTON 2 Common Well Name: PAXTON 2 Spud Date: 1/7/2008 Event Name: ORIGINAL COMPLETION Start: 2/6/2008 End: Contractor Name: GLACIER DRILLING Rig Release: 2/15/2008 Group: Rig Name: GLACIER DRILLING Rig Number: 1 Phase Description of Operations Date From - To Hours ~ Code , Code 3/9/2008 13:00 -13:30 0.50 PULD_ LOG_ WRLN Lay down logging tool, lubricator, BOP, secure wellhead, demobilize equipment 13:30 - 14:00 0.50 SECUR WELL WRLN signout, turn in work permit for evening 3/27/2008 09:00 - 10:30 1.50 SAFETY MTG_ PATCH obtained work permit at SD pad, held PJSM, topics -slips /trips /falls, overhead work, pinch points, fire watch, active gas production pad -red lights for fire, blue lights for gas release, sirens, use buddy system, 3 second rule, muster point, pressure. Pressure testing wellhead equipment. Finished PJSM at Paxton Pad with pad operators, Expro wireline and BJ services 10:30 - 11:30 1.00 RURD_ PIPE MIRU Rig up wireline, lubricator, BJ N2 pump truck. Wellhead pressure 1175# fluid level at 3150 feet. Calculated hydrstatic pressure 3289# 11:30 - 11:35 0.08 TEST_ BOPE PATCH Pressure test N2 iron 4000 #-good. 11:35 - 13:15 1.67 PUMP_ N2_ PATCH Start pumping N2 to bullhead fluid back into perforations (8032-8052). WH pressure 1500#, rate 1000scf er minute. Pum ed until surface ressure of u t 2600# whic v h r t I , 3300# downhole 13:15 - 14:15 1.00 PULD_ LOG_ WRLN Rig up Expro lubricator casing patch. Pressure test lubricator to 2500# .,,~`~`~ -good r 14:15 - 15:45 1.50 RUNPU ELEC WRLN run casing patch into well. Fluid level at 8000ft. Had to work through perforations. Pulled approx. 700 # over line weight several. times. Ran tie in pass, drop below perforations. 15:45 - 16:15 0.50 PUMP_ N2_ PATCH Pumped additional N2 to try and get as much fluid back into formation as possible 16:15 - 16:30 0.25 RUNPU ELEC WRLN set atch. Setting tool released from patch. Start out of hole 16:30 - 17:00 0.50 PUMP_ N2_ PATCH ressure test atch to 2750# at surface. 17:00 - 17:45 0.75 RURD_ ELEC WRLN Rig down Expro / BJ Services 17:45- 18:00 0.25 SECUR WELL PATCH Secure wellhead for evening, leave location, turn in work permit to lead operator 3/28/2008 09:00 - 10:00 1.00 SAFETY MTG_ PATCH obtained work permit at SD pad, held PJSM, topics -slips /trips /falls, overhead work, pinch points, fire watch, active gas production pad -red lights for fire, blue lights for gas release, sirens, use buddy system, 3 second rule, muster point, pressure. Pressure testing wellhead equipment. Finished PJSM at Paxton Pad with pad operators and Pollard wireline 10:30 - 11:30 1.00 RURD_ SLIK MIRU Rig up wireline, lubricator, bailer. Wellhead pressure 2700# (N2). Patch holding pressure excellent 11:30 - 11:35 0.08 TEST_ BOPE SLICK Pressure test lubricator iron 2700 #- good. 11:35 - 13:00 1.42 BAIL_ FLD_ SLICK Start in hole. Slow going across deviation. 13:00 - 16:00 3.00 BAIL_ FLD_ SLICK hydraulic pump failure. Bailer in hole at 5500 feet. Pollard sending replacement truck to location to get tool out of hole 16:00 - 19:00 3.00 CUT_ WIRE SLICK change out trucks, attach T-bar to slickline, slack off slickline, spool off 500 feet, cut slickline, spool onto empty drum on second truck, pull slickline and tool out of hole with second truck 19:00 - 19:30 0.50 RURD_ SLIK SLICK Rig down Pollard Wireline 19:30 - 19:45 0.25 SECUR WELL SLICK Secure wellhead for evening, leave location, turn in work permit to lead operator 3/30/2008 08:00 - 08:30 0.50 SAFETY MTG_ PATCH obtained work permit at SD pad, held PJSM at Paxton Pad, topics - slips /trips /falls, overhead work, pinch points, fire watch, active gas production pad -red lights for fire, blue lights for gas release, sirens, use buddy system, 3 second rule, muster point, pressure. Pressure testing wellhead equipment. 08:30 - 09:45 1.25 RURD SLIK MIRU Rig up wireline, lubricator, bailer. Wellhead pressure 2600# (N2). Printed: 5/29/2005 3:25:10 PM ,~ • Marathon Oil Company Operations Summary Report Page 4 of 13 ~ Legal WeII~Name: PAXTON 2 Common Well Name: PAXTON 2 Spud Date: 1/7/2008 Event Name: ORIGINAL COMPLETION Start: 2/6/2008 End: Contractor Name: GLACIER DRILLING Rig Release: 2/15/2008 Group: Rig Name: GLACJER DRILLING Rig Number: 1 bate From - To ~ Hours , Code Code Phase Description of Operations 1 3/30/2008 08:30 - 09:45 1.25 RURD-_ SLIK MIRU Patch holding pressure excellent 09:45 - 10:00 0.25 TEST_ BOPE SLICK Pressure test lubricator iron 2600 #- failed. Replace "O" ring. Tested good. 10:00 - 14:15 4.25 BAIL_ FLD_ SLICK Start in hole. fluid level at 5775. wellhead pressure 2600# Made 7 trips in hole. Fluid level constant between 5770 and 5780. Apparent hole in cabin casin atch? 14:15 - 14:45 0.50 RURD_ SLIK SLICK Rig down Pollard Wireline 14:45 - 15:00 0.25 SECUR WELL SLICK Secure wellhead for evening, leave location, turn in work permit to lead operator 4/11/2008 09:00 - 10:00 1.00 SAFETY MTG_ PATCH obtained work permit at SD pad, held PJSM at Paxton Pad, topics - slips /trips /falls, overhead work, pinch points, fire watch, active gas production pad -red lights for fire, blue lights for gas release, sirens, use buddy system, 3 second rule, muster point, pressure. Pressure testing wellhead equipment. 10:00 - 11:00 1.00 RURD_ ELEC MIRU Rig up Wireline, lubricator, bailer. Wellhead pressure 2500# at gauge on wellhead. 11:00 - 11:15 0.25 TEST_ BOPE WRLN Pressure test lubricator iron 2500# Tested good. 11:15 - 16:00 4.75 LOG_ CSG_ WRLN Start in hole. shut in wellhead pressure #2560 At 11:37 am fluid level 5800 feet. Log pass across perforations patch to verify depth. Patch 16:30 - 16:45 0.25 SECUR WELL SL CK ~ 4/13/2008 ~ 07:00 - 10:00 ~ 3.00 ~ SAFETY ~ MTG_ ~ PRDTST 10:00 - 13:00 3.001 RURD_ COIL ~ PRDTST 13:00 - 15:30 2.50 RURD COIL PRDTST 15:30 - 17:00 1.50 RURD_ _ COIL PRDTST 4/14/2008 07:00 - 09:00 09:00 - 10:00 10:00 - 10:30 2.00 SAFETY MTG_ PRDTST 1.00 RURD_ COIL PRDTST 0.50 RURD COIL PRDTST at surface. Monitor pressure and temperature just above patch. No change in temperature (dropped 1/4th of one degree) during pressure bleed off. 2:33pm Log from patch up through fluid level. Fluid level at 5522 feet MD. 2:56pm fluid level at 5571 feet MD. 3:04PM fluid level at 5592feet MD. 3:19PM fluid level at 5646 feet MD. 3:26 pm fluid level at 5655 feet MD. Patch appears to be holding. No fluid coming into hole. Gas in solution coming out after blowing down N2 cap reducing fluid volume. Pressure above fluid level 26#. Acting similar to a bottle of Coke. Rig down Expro Wireline Shut in well. No pressure on wellhead Secure wellhead for evening, leave location, turn in work permit to lead operator MIRU BJ Coiltech equipment around well head, set flow back equipment on liners, move in Methanol tank for pressure testing flow lines and BOP test. Held PJSM and obtained work permit, discussed safety issues during rig up. Rig up flow back lines, N2 lines for reverse circulation from coil. PT flow lines 250 psig low/4300 psig high. Note: Contacted North Slope AOGCC on Friday giving them 24 hours notice prior to the BOP test today. I was giving the go ahead by Chris with tht AOGCC. Pressure tested the BOP. Tested blinds and rams @ low at 230 psig/high 4520 psig and kill line valves tested at the same pressures - good test. Shut down for evening, flow lines and surface equipement ready for job tomorrow. BJ personnel left lease. Held PJSM and obtained work permit, discussed safety issues during todays operations. Over flow line on diesel engine on the operations cabin leaked some antifreeze to liner, 1/2 cup splashed over liner to ground. Cleaned up. MU coil connector, straight bar and 2.25" nozzle to end of 1 3/4" coil. PU injector and go to well with same. Secured injector with walking dogs. Open well. ', WHP= 600 psig. RIH with coil at 50 FPM at start of operation. When Printed: 5/29/2008 3:25:10 PM Marathon Oil Company Operations Summary Report Page 5 of 13 ~ Legal Well Name: PAXTON 2 Common Well Name: PAXTON 2 Spud Date: 1/7/2008 Event Name: ORIGINAL COMPLETION Start: 2/6/2008 End: Contractor Name: GLACIER DRILLING Rig Release: 2/15/2008 Group: Rig Name: GLACIER DRILLING Rig Number: 1 Date From - To Hours Code Code Phase Description of Operations 4/14/2008 10:00 - 10:30 0.50 RURD COIL PRDTST 10:30 - 11:40 1.17 WORK COIL PRDTST 11:40 - 11:55 0.25 PUMP_ N2_ PRDTST 11:55 - 12:30 0.58 PUMP_ N2_ PRDTST 12:30 - 13:20 0.83 PUMP_ N2_ PRDTST 13:20 - 13:50 0.50 PUMP_ N2 PRDTST 13:50 - 14:05 0.25 PUMP_ N2_ PRDTST 14:05 - 14:30 0.42 PUMP_ N2_ PRDTST 14:30 - 15:40 1.17 PUMP N2 PRDTST 15:40 - 15:50 0.17 PUMP_ N2_ PRDTST 15:50 - 16:40 0.83 WORK COIL PRDTST 16:40 - 17:10 0.50 RURD COIL PRDTST 17:10 - 18:30 1.33 RURD COIL PRDTST 4/15/2008 08:00 - 09:00 1.00 SAFETY MTG PRDTST 09:00 - 12:00 3.00 RURD COIL PRDTST 12:00 - 12:30 0.50 RURD_ COIL PRDTST 12:30 - 12:45 0.25 SECUR WELL PRDTST 4/16/2008 07:30 - 08:30 1.00 SAFETY MTG_ PATCH 08:30 - 10:00 1.50 RURD_ ELEC MIRU 10:00 - 1.0:30 0.50 TEST_ BOPE WRLN 10:30 - 12:00 1.50 LOG CSG WRLN 12:00 - 14:30 2.50 PERF_ CSG_ WRLN coil at 500' CTM increase RIH rate to 100' PM. Coil at 3000' cool down N2 unit. Start N2 rate at 500 SCFM while running in well. Coil @ 6265 psig, PIP=10 psig, increase PIR=1200 SCFM/not to exceed 2600 psig. WHP= 475 psig. Returns to flow back tank, PIP= 1600 psig, WHP= 125 psig. Returns dirty. Total 8 bbls to flow back. Cut N2 rate to 500 SCFM. RIH with coil. Coil at 7200' increase PIR to 1000 SCFM. PIP up to 1.900 psig. WHP at 190 psig. Continue pumping N2 to back side on well. No flow to gas buster. Returns into flow back tank, PIP= 2300 psig, WHP up to 150 psig. N2 rate at 1000 SCFM. RIH with coil, returns gas cut into flow back tank. WHP up to 500 psig and falling. PIP= 2260 psig. WHP=230 psig. Total N2 pumped = 150, 000 SCF. Total fluid to flow back tank = 23 bbls. Coil at 8260' check pu weight, PUW = 15500 Ibs, RIH with coil to 8255'. Increase N2 rate up to 1000 SCFM. Returns to flow back, cut N2 back to 500 SCFM. WHP to 500 psig and climbing. Cut N2 back to 300 SCFM. Returns. PIP= 2350 psig, WHP = 650 psig. Shut off N2, still good returns to flow back tank. Total fluid @ 13", 36.4 bbls in flow back tank. Returns allmost all N2. Shut in choke. POOH with coil. Coil at 4800', WHP @ 1600 psig. Continue OOH with coil. Coil at surface, Shut in swab valve. WHP= 1465 psig. Open up coil reel and blow down. Coil blew down. Lay down injector. Secured well head with tree cap. Shut down all equipment. BJ left lease. Hold PJSM and obtain Safe Work Permit, Discussed BJ JSA and assign responsiblities for todays operations. Unstab coil from Injector. Roll up and shackle CT end to spool. RD BOP's from Well head. Install and Ptest Tree cap. WHP 1470 psi. Vac out pumps and lines. RD flow back iron. Rig out N2 pumper. Trans load reel. PU hydraulic cables. Load out the tool connex and boom down. Load out BOP's and boom down. Load out 45 ton crane. Secure well and location. Turn in permit. Sign out. obtained work permit at SD pad, held PJSM at Paxton Pad, topics - slips /trips /falls, overhead work, pinch points, fire watch, active gas production pad -red lights for fire, blue lights for gas release, sirens, use buddy system, 3 second rule, muster point, pressure. Pressure testing wellhead equipment. Rig up wireline, lubricator, bailer. Wellhead pressure 1725# at oauae on wellhead. Pressure test lubricator iron 3000# Tested good. Start in hole. shut in wellhead pressure #1698 on PT Pressure gauge. On bottom at 11:30 am Fluid level at 8204 feet MD RIH with 2 3/8" perforating gun loaded 4 spf and perforate 8106 - 8120 feet. Bled well down to 1025# and perforated at 14:30 pm. No change in pressure on wellhead. Visual verification of gun detonation when back to surface. Printed: 5/29/2008 3:25:10 PM Marathon Oil Company Operations Summary Report Page 6 of 13 Legal Well Name: PAXTON 2 Common Well Name: PAXTON 2 Spud Date: 1/7/2008 Event Name: ORIGINAL COMPLETION Start: 2/6/2008 End: ....Contractor Name: GLACIER DRILLING Rig Release: 2/15/2008 Group: Rig Name: GLACIER DRILLING Rig Number: 1 Date From - To Hours Code Code Phase 4/16/2008 ~ 14:30 - 15:30 1.00 RURD ELEC ~ WRLN 15:30 - 16:00 4/22/2008 08:00 - 08:30 0.501 SECURE WELL I SLICK 0.50 ~ SAFETY ~ MTG_ ~ W RLN 08:30 - 09:20 09:20 - 09:40 09:40 - 12:00 12:00 - 12:45 12:45 - 13:00 0.831 RURD I ELEC I MIRU 0.33 TEST_ BOPE WRLN 2.33 LOG_ CSG_ WRLN 0.25 SECUR~WELL SLCK 14/23/2008 108:00 - 10:00 I 2.001 BLOWD~ICSG I PRDTST 10:00 -10:45 0.75 BLOWD CSG_ PRDTST 10:45 - 11:00 0.25 SECUR WELL RDMO 4/24/2008 08:20 - 09:10 0.83 SAFETY MTG_ PR2EVL 09:10 - 10:45 I 1.581 RURD I ELEC I PRDTST 10:45 - 11:00 0.25 RURD_ ELEC PRDTST 11:00 - 11:10 0.17 TEST_ EOIP PRDTST 11:10 - 11:30 0.33 TEST_ EOIP PRDTST 11:30 - 12:08 0.63 LOG_ CSG_ PRDTST 12:08 - 12:10 0.03 LOG_ CSG_ PRDTST 12:10 - 12:20 0.17 LOG_ CSG_ PRDTST 12:20 - 12:45 0.42 PUMP_ N2 PRDTST 12:45 - 13:00 0.25 PUMP_ N2_ PRDTST 13:00 - 13:12 0.20 PUMP_ N2_ PRDTST 13:12 - 13:35 0.38 PUMP_ N2_ PRDTST 13:35 - 13:40 0.08 PUMP_ N2_ PRDTST 13:40 - 13:50 0.17 PUMP_ N2_ PRDTST 13:50 - 14:05 0.25 PUMP_ N2_ PRDTST 14:05 - 14:07 0.03 PUMP_ N2 PRDTST 14:07 - 14:27 0.33 PUMP N2 PRDTST 14:27 - 14:58 0.52 PUMP_ N2_ PRDTST 14:58 - 15:05 0.12 PUMP N2 PRDTST Description of Operations Rig down Expro Wireline. Wellhead pressure 1025#. Bleed N2 on wellhead back through sand buster until pressure drops to 800#. No methane on gas sniffer. Shut in well. Wellhead pressure 800# and steady. No increase apparent. Secure wellhead for evening, leave location, turn in work permit to lead operator obtained work permit at SD pad, held PJSM at Paxton Pad, topics - slips /trips /falls, overhead work, pinch points, fire watch, active gas production pad -red lights for fire, blue lights for gas release, sirens, use buddy system, 3 second rule, muster point, pressure. Pressure testing wellhead equipment. Rig up Wireline, Iubricator,PT tool. Wellhead pressure 1900# at aaiiaa Pressure test lubricator iron 3000# Tested good. Start in hole. shut in wellhead pressure #1928 on PT. Fluid level at 5838 feet MD. Start out of hole. Started to bleed down N2 pressure on wellhead in anticipation of perforating next zone. Wellhead pressure bled down to 1150# when stopped. Rig down Expro Wireline. Wellhead pressure 1150# Secure wellhead for evening, leave location, turn in work permit to lead operator Blow down casing from 1150# to 600#. At start of operation gas cap was made up of N2. When pressure got down to approx. 800#_, well started making Methane. Attempted to allow pressure to build up in wellbore when produced gas appeared to be 100% Methane -Wellhead pressure 600#. No pressure build up after this point in time. Shut in well. Leave location Obtain safe Work Permit. Holp PJSM. Discuss BJ and Expro's JSA's. Discuss alarms, muster area, emergency reponse, and spectators. Discuss specific job tasks and overall objective for todays job. Spot equipment. RU Expro logging equipment and BJ's N2 pumping equipment. PU 2.71" roller boogie and 1-11/16" tool string CCL, Gamma, Capacitance, pressure and temperature tools. Carry lubricator to WH. Start Cooling down N2 pumper. BJ PTest their lines. PTest lines and lubricator to 4500 psi. Test good. Release pressure. RIH w/ 2.71" roller boogie and 1-11/16" tool string CCL, Gamma, Capacitance, pressure and temperature tools. 412 psi WHP. Fluid level @ 4594' BJ cooling down N2. BJ start pumping N2 @ 750 scf. 690 psi. Pumping N2 @ 750 scf 860 psi. Increase rate to 1000 scf/m. 1200 psi. Pumping N2 @ 1000 scf/m. 1600 psi. Pumped total of 59,000 scf. Pumping N2 @ 1000 scf/m 2300 psi. Fluid level 4760'. Pumping N2 @ 1000 scf/m 2500 psi. Fluid level 4800'. Pumping N2 @ 1000 scf/m 2700 psi. Fluid level 4870'. Pumping N2 @ 1000 scf/m 3500 psi. Fluid level 4946'. Pumping N2 @ 1000 scf/m 3610 psi. Fluid level 5000'. Pumped total of 100,000 scf. Shut down @ 4000 psi. Fluid level 5105'. Pumped total of 112,600 scf. Watching WHP fall off. Fluid level 5250'. Printed: 5/29/2008 3:25:10 PM Marathon Oil Company Page 7 of 13 Operations Summary Report Legal Well Name: PAXTON 2 Common Well Name: PAXTON 2 Spud Date: 1/7/2008 Event Name: ORIGINAL COMPLETION Start: 2/6/2008 End: Contractor Name: GLACIER DRILLING Rig Release: 2/15/2008 Group: Rig Name: GLACIER DRILLING Rig Number: 1 Date From - To Hours ~ Code Code , Phase Description of Operations 4/24/2008 15:05 - 15:15 0.17 PUMP_ N2_ PRDTST WHP 3650 si. Fluid level 5290,• 15:15 - 15:20 0.08 PUMP_ N2_ PRDTST Start Pumping N2 @ 500 scf/m 2300 psi. Fluid level 5334'. 15:20 - 15:30 0.17 PUMP_ N2_ PRDTST Pumping N2 @ 500 scf/m 3750 psi. Fluid level 5370' 15:30 - 16:45 1.25 PUMP_ N2_ PRDTST Pumping N2 @ 500 scf/m 3900 psi. Fluid level 5400'. 16:45 - 17:05 0.33 PUMP_ N2_ PRDTST Shut down N2 4000 psi. Fluid level 5720'. Pumped total 122,500 scf. 17:05 - 18:00 0.92 RUNPUL EOIP PRDTST Fluid level 5782'. POOH. 18:00 - 19:00 1.00 SECUR WELL PRDTST RD for the night. Secure well and location. Leave loc. Lock gate. 4/25/2008 08:00 - 09:00 1.00 SAFETY MTG_ PR2EVL Obtain safe Work Permit. Holp PJSM. Discuss BJ and Expro's JSA's. Discuss alarms, muster area, emergency reponse, and spectators. Discuss specific job tasks and overall objective for todays job. 09:00 - 09:20 0.33 RURD_ ELEC PRDTST PU Expro lubricator. Add 5' additional weight bar. MU 2.71" roller boogie and 1-11/16" tool string CCL, Gamma, Capacitance, pressure and temperature tools. BJ transferring N2 to pumpimg unit. 09:20 - 09:25 0.08 RURD_ ELEC PRDTST Carry lubricator to WH. Start Cooling down N2 pumper. 09:25 - 09:30 0.08 TEST_ EQIP PRDTST BJ PTest their lines. 09:30 - 09:40 0.17 TEST_ EOIP PRDTST PTest lines and lubricator to 4500 psi. Test good. 09:40 - 10:26 0.77 LOG_ CSG_ PRDTST RIH w/ 2.71" roller boogie and 1-11/16" tool string CCL, Gamma, Capacitance, pressure and temperature tools. xxx psi WHP. RIH past the flats before starting N2. 10:26 - 10:45 0.32 LOG_ CSG_ PRDTST BJ start pumping N2 @ 250 scf.m. 3200 psi. 10:45 - 10:50 0.08 LOG_ CSG_ PRDTST Fluid level @ 6650'. 10:50 - 11:00 0.17 PUMP_ N2_ PRDTST Increase pump rate to 500 scf/m. 3300 psi. 11:00 - 11:12 0.20 PUMP_ N2_ PRDTST Increase pump rate to 1000 scf/m. 3450 psi. 11:12 - 11:30 0.30 PUMP_ N2_ PRDTST Pump rate to 250 scf/m. 3800 psi. 11:30 - 11:47 0.28 PUMP_ N2_ PRDTST Pumping N2 @ 250 scf 3950 psi. 11:47 - 12:08 0.35 PUMP_ N2_ PRDTST Pumping N2 @ 250 scf 4050 psi. Fluid level 6707'. 12:08 - 12:15 0.12 PUMP_ N2_ PRDTST Pumping N2 @ 250 scf 4150 psi. Fluid level 6758' 12:15 - 12:30 0.25 PUMP_ N2_ PRDTST W PH 4220 psi. Shut down N2. Wait for pressure to fall off. 12:30 - 12:55 0.42 LOG_ CSG_ PRDTST WHP holdin 4160 si. 12:55 - 13:15 0.33 LOG_ CSG_ PRDTST WHP holding @ 4150 psi. Fluid level 6820'. Pumped total 46,600 scf N2. 13:15 - 13:50 0.58 LOG_ CSG PRDTST WHP holding @ 4150 psi. Fluid level 6900'. 13:50 - 14:30 0.67 LOG_ CSG_ PRDTST WHP holding @ 4150 psi. Fluid level 6958'. 14:30 - 15:00 0.50 PUMP_ N2_ PRDTST Boost pressure to 4200 psi. Fluid level 7048'. Fluid moving down hole about 2 ft/min. 15:00 - 15:50 0.83 LOG_ CSG_ PRDTST WHP holding @ 4150 psi. Fluid level 7084'. POOH. 15:50 - 16:20 0.50 RURD_ ELEC PRDTST OOH. Rig E-line down for the night. 16:20 - 16:30 0.17 PUMP_ N2_ PRDTST Pressure wellhead to 4500 si for the ni ht. 16:30 - 16:40 0.17 PUMP_ N2_ PRDTST Pumping N2 @ 750 scf/m WHP 4250 16:40 - 16:50 0.17 SECUR WELL PRDTST Shut well in WH 4500 psi. Close both masters, wing valve, and SSV. Secure well head and location for the night. 16:50 - 17:00 0.17 SECUR WELL PRDTST Notify Earl with ops that we have finished for the night. Stop by SD pad to tum in permit. 4/26/2008 08:00 - 08:45 0.75 SAFETY MTG_ PR2EVL Obtain safe Work Permit. Holp PJSM. Discuss BJ and Expro's JSA's. Discuss alarms, muster area, emergency reponse, and spectators. Discuss specific job tasks and overall objective for todays job. 08:45 - 09:10 0.42 RURD_ ELEC PRDTST PU Expro lubricator. Add 5' additional weight bar. MU 2.71" roller boogie and 1-11/16" tool string CCL, Gamma, Capacitance, pressure and temperature tools. BJ transferring N2 to pumpimg unit. 09:10 - 09:20 0.17 RURD_ ELEC PRDTST Carry lubricator to WH. Start Cooling down N2 pumper. 09:20 - 09:30 0.17 TEST_ EOIP PRDTST BJ cooling down pumps. BJ PTest their lines. 09:30 - 09:45 0.25 TEST_ EQIP PRDTST PTest lines and lubricator to 4500 psi. Test good. 09:45 - 10:37 0.87 LOG_ CSG_ PRDTST RIH w/ 2.71" roller boogie and 1-11/16" tool string CCL, Gamma, Printed: 5/29/2008 3:25:10 PM i ~ Marathon Oil Company Page 8 of 13 .Operations Summary Report Legal Well Name: PAXTON 2 Common Well Name: PAXTON 2 Spud Date: 1/7/2008 Event Name: ORIGINAL COMPLETION Start: 2/6/2008 End: Contractor Name: GLACIER DRILLING Rig Release: 2/15/2008 Group: Rig Name: GLACIER DRILLING Rig Number: 1 Date ' From - To Hours Code Code Phase Description of Operations 4/26/2008 09:45 - 10:37 0.87 LOG_ CSG_ PRDTST Capacitance, pressure and temperature tools. 3840 psi WHP. RIH past the flats before starting N2. 10:37 - 11:00 0.38 PUMP_ N2_ PRDTST BJ start pumping N2 @ 250 scf/.m. 3600 psi. Increase Pressure to 3900 psi. 11:00 - 11:50 0.83 LOG_ CSG_ PRDTST Fluid level @ 8026'. Shut down N2. POOH. 11:50 - 12:20 0.50 RURD_ EQIP PRDTST Close Upper Master Valve. Bleed WH, lubricator, and BJ lines. LD lubricator. RD BJ. 12:04 -12:15 0:18 SAFETY MTG_ PRDTST Hold Explosive Safety Meeting. Check for stray electrical signals. Turn off cell phones. Post signage and guard at the gate. 12:15 - 12:30 0.25 TEST_ EQIP PRDTST Arm 4-1/2' CIBP. PU lubricator. PTest lubricator to 4500 psi. Good test. 12:30 - 13:55 1.42 RUNPU ELEC PRDTST RIH w/ 4-1 /2" CIBP to 8022'. Run correlation pass going DH. 13:55 - 14:00 0.08 RUNPU ELEC PRDTST Set 4-1/2" CIBP 8022'. PU. 14:00 - 14:05 0.08 RUNPU ELEC PRDTST Set weight back down on CIBP. Takes weight. 14:05 - 14:15 0.17 RUNPU ELEC PRDTST POOH. 14:15 - 14:45 0.50 FLOW_ BACK PRDTST WHP 3800 psi. Start bleeding pressure down underbalance. 14:45 - 14:50 0.08 RUNPU ELEC PRDTST WHP 1850 psi. Shut in to LD lubricator. 14:50 - 15:20 0.50 PULD_ PGUN PRDTST OOH. LD PT tools. PU 15' -3-3/8" hollow carrier perforating gun loaded 6 spf, 60 degree phased SDP-3125-311NT4 charges and PX-1 firing head. 15:20 - 15:30 0.17 SAFETY MTG_ PRDTST Hold Explosive Safety Meeting. Check for stray electrical signals. Turn off cell phones. Post signage and guard at the gate. 15:30 - 15:40 0.17 TEST_ EQIP PRDTST Arm guns. PT lubricator. Test good. 15:40 - 16:00 0.33 RUNPU ELEC PRDTST RIH w/ 15' -3-3/8" hollow carrier perforating gun loaded 6 spf, 60 degree phased SDP-3125-311 NT4 charges and PX-1 firing head. 16:00 - 16:30 0.50 FLOW BACK PRDTST Bleed WHP to 1020 psi. 16:30 - 17:10 0.67 RUNPU ELEC PRDTST Continue RIH. Confirm depth of CIBP @ 8022'. 17:10 - 17:21 0.18 LOG_ CSG_ PRDTST Run correlation pass. 17:21 - 17:23 0.03 LOG_ CSG_ PRDTST Pull up in position CCL @ 7945'. 17:23 - 18:18 0.92 PERF_ CSG_ PRDTST Perforate 7955- 7970' (Radial CBL)15'. WHP 1020 psi. POOH. 17:25 1030 psi WHP. 17:30 1040 psi WHP. 17:35 1050 psi. WHP. 18:00 1070 psi. WHP. Monitored on SKADA. 18:18 - 19:00 0.70 RURD_ ELEC PRDTST OOH. Bleed down lubricator. RD. Install night cap on lubricator and Ptest. Test good. 19:00 - 19:10 0.17 SECUR WELL PRDTST Secure well head and location for the night. 4/28/2008 08:00 - 08:35 0.58 SAFETY MTG_ PR2EVL Obtain safe Work Permit. Holp PJSM. Discuss Expro JSA. Discuss alarms, muster area, emergency reponse, and spectators. Discuss specific job tasks and overall objective for todays job. 08:35 - 08:50 0.25 RURD_ ELEC PRDTST PU Expro lubricator. MU 2.71" roller boogie and 1-11/16" tool string CCL, Gamma, Capacitance, pressure and temperature tools. 08:50 - 09:00 0.17 TEST_ EQIP PRDTST PTest quick test sub to 2000 psi. Test good. 09:00 - 10:20 1.33 RUNPUL ELEC PRDTST RIH w/ 2.71" roller boogie and 1-11/16" tool string CCL, Gamma, Capacitance, pressure and temperature tools. 1650 psi SIWHP. 10:20 - 10:30 0.17 LOG_ CSG_ PRDTST Fluid level at 7038' (984; of water influx.) SIBHP = 2425psi at6 7980' ELMD. SIBHT = 144 DegF. 10:30 - 11:20 0.83 PUMP_ N2_ PRDTST POH. 11:20 - 12:00 0.67 RURD_ ELEC PRDTST Rig back equipment. Secure well. Close permit and leave. 4/30/2008 08:00 - 09:00 1.00 SAFETY MTG_ PR2EVL Obtain safe Work Permit. Holp PJSM. Discuss Expro JSA. Discuss alarms, muster area, emergency reponse, and spectators. Discuss specific job tasks and overall objective for todays job. 09:00 - 10:00 1.00 RURD_ ELEC PRDTST PU Expro lubricator. MU 2.71" roller boogie and 1-11/16" tool Printed: 5/29/2008 3:25:10 PM ~ M Marathon Oil Company Page 9 of 13 Operations Summary Report Legal Well Name: PAXTON 2 Common Well Name: PAXTON 2 Spud Date: 1/7/2008 Event Name: ORIGINAL COMPLETION Start: 2/6/2008 End: Contractor Name: GLACIER DRILLING Rig Release: 2/15/2008 Group: Rig Name: GLACIER DRILLING Rig Number: 1 Phase Description of Operations Date From - To Hours Code Code 4/30/2008 09:00 - 10:00 1.00 RURD ELEC PRDTST string3-3/8" CCL, PX-1 firing head, 7' weight bar. WHP 1656 psi. 10:00 - 10:10 0.17 _ RURD_ ELEC PRDTST Hold Explossive Safety meeting. Post signage and station guard at the gate. Turn off all cell phones /radios even though we are using the Safe System. 10:10 - 10:20 0.17 RURD_ ELEC PRDTST Arm gun. Carry lubricator to WH. 10:20 - 10:44 0.40 TEST_ EQIP PRDTST PTest lubricator to 2500 psi. Test good. 10:44 - 11:15 0.52 RUNPU ELEC PRDTST Open swab valve. Notice Upper Master Valve is close. Open Upper master to RIH. Notice new WHP-1880 psi. Conclude WH was shut in after running PT Survey Sunday am. RIH w/ 9' of 3-3/8" hollow carrier loaded 6 spf, 60 degree phased w/SDP-3125-311 NT4 charges and PX-1 firing head. 11:15 - 11:40 0.42 LOG_ CSG_ PRDTST Fluid level a ears to be 6600'. 1340' x .4416 = 590 psi.(Ph of water column). Reduce under balance pressure (1017 psi) by a con'esponding amount yields 427 psi. surface pressure. 11:40 - 11:50 0.17 LOG CSG_ PRDTST Run correlation pass from 8020'. Bleed WHP to 420 psi. 11:50 - 11:57 0.12 LOG_ CSG_ PRDTST Pull up into position w/ CCL @ 7935'. 11:57 - 12:05 0.13 PERF_ CSG PRDTST . Shot 7940'- 7949' OH/CH 9' with 3-3/8" hollow carrier loaded 6 spf, 60 degree phased w/ SDP-3125-311 NT4 charges and PX-1 firing head. 11:57 420 psi 12:05 420 psi 12:35 440 psi 13:55 450 psi 12:05 - 12:45 0.67 RUNPU ELEC PRDTST POOH. 12:45 - 12:50 0.08 RURD_ ELEC PRDTST OOH. All uns fired. Some sand( not perf debrie) in bottom of guns. Note: tagged high @ 8019' 12:50 - 12:55 0.08 SAFETY MTG_ PRDTST Hold Explossive Safety meeting. Post signage and station guard at the gate. Tum off all cell phones /radios even though we are using the Safe System. 12:55 - 13:05 0.17 RURD_ ELEC PRDTST Ann 27' gun. Carry lubricator to WH. Ptest QTS to 2500 psi. Test good. 13:05 - 13:35 0.50 RUNPU ELEC PRDTST RIH w/ 27' of 3-3/8" hollow carrier loaded 6 spf, 60 degree phased w/ SDP-3125-311NT4 charges and PX-1 firing head. 13:35 - 13:55 0.33 PRDTST Apparent fluid level 6350'. Ph = (7899-6350) x .4416 = 670 psi. Correspondingly, reduced the under balance (1016 - 670 = 350 psi) 13:55 - 14:00 0.08 LOG_ CSG_ PRDTST Run correlation pass. PBTD 8015'. Appear to be loosing hole. Bleed WH down to 350 psi. 14:00 - 14:09 0.15 LOG_ CSG_ PRDTST Pull up into position @ 7892.5 'CCL depth. 14:09 - 14:11 0.03 PERF CSG_ PRDTST Shoot 7899- 7926' (OH/CH) 27' with 3-3/8" hollow carrier loaded 6 spf, 60 degree phased w/ SDP-3125-311NT4 charges and PX-1 firing head. 14:09 350 psi. 14:12 370 psi. 14:30 390 psi. 14:47 410 psi. 14:11 - 14:50 0.65 RUNPU ELEC PRDTST POOH. 14:50 - 15:30 0.67 RURD_ ELEC PRDTST OOH. RD. 15:30 - 15:45 0.25 SECUR WELL PRDTST Secure WH. Leave masters open to watch pressure buildup on SKADA. Turn in Permit. Lock gate and leave loc. Stop by SD to discuss w/ operations. 5/1/2008 09:30 - 10:30 1.00 SAFETY MTG_ PR2EVL Obtain safe Work Permit. Holp PJSM. Discuss Expro JSA. Discuss alarms, muster area, emergency reponse, and spectators. Discuss specific job tasks and overall objective for todays job. Printed: 5/29/2008 3:25:10 PM i M Marathon Oil Company Page 10 of 13 Operations Summary Report Legal Well Name: PAXTON 2 Common Well Name: PAXTON 2 Spud Date: 1/7/2008 Event Name: ORIGINAL COMPLETION Start: 2/6/2008 End: Contractor Name: GLACIER DRILLING Rig Release: 2/15/2008 Group: Rig Name: GLACIER DRILLING Rig Number: 1 Phase Description of Operations Date From - To ~ Hours Code Code 5/1/2008 10:30 - 10:50 0.33 RURD_ ELEC PRDTST PU Expro lubricator. MU Tools string- rope socket,2.71" roller boogie, 7' wt. bar, roller boggle, 7' wt. bar, roller boogie,. 12' oft-11/16" PT tools(CCL, capacitance, pressure, and temperature tool, and roller boogie. WHP gauge- 740 psi. 10:50 -10:55 0.08 RURD_ ELEC PRDTST Cary lubricator to WH. 10:55 - 11:04 0.15 TEST_ EOIP PRDTST PTest lubricator to 1200 psi. Test good. 11:04 - 11:50 0.77 LOG_ CSG_ PRDTST Open swab valve. RIH. Indicated WHP 746 psi. 11:50 - 12:35 0.75 LOG_ CSG_ PRDTST Fluid level appears to be 5480'. 12:35 - 12:40 0.08 LOG_ CSG_ PRDTST Soft to TD 8,010'. Tern erature 144 De ree F, 1941 psi. 12:40 - 13:00 0.33 LOG_ CSG_ PRDTST POOH logging to 5000'. 13:00 - PRDTST Fluid level logging up 5460'. 13:00 - 13:05 0.08 LOG_ CSG_ PRDTST At 5000', 100 degree F, 847 psi. 13:05 - 14:07 1.03 BLOWD CSG PRDTST Flow well to aas buster. 13:05 760 psi. Shut-in pressure 13:10 640 psi. Open choke 5 turns. (11 total to full open) 13:11 600 psi. Same choke setting 13:13 530 psi. " 13:15 480 psi. " 13:17 440 psi. " 13:19 400 psi. " 13:22 345 psi. " 13:25 300 psi. " 13:30 235 psi. " 13:33 200 psi. " 13:40 140 psi. " 13:44 115 psi. " 13:48 90 psi. " 13:53 80 psi. " 13:57 60 psi. " 14:03 45 psi. " 14:20 20 psi. Well sounds dead, just a whisper of gas. 14:07 - 14:38 0.52 LOG_ CSG_ PRDTST 14:38 - 14:40 0.03 LOG_ CSG_ PRDTST 14:40 - 15:30 0.83 LOG_ CSG_ PRDTST 15:30 - 15:45 0.25 LOG_ CSG_ PRDTST 15:45 - 15:55 0.17 WAITON ORDR PRDTST 15:55 - 16:30 0.58 RUNPU ELEC PRDTST 16:30 - 17:00 0.50 RURD_ ELEC PRDTST 17:00 - 17:15 0.25 SECUR WELL PRDTST ~ 5/2/2008 ~ 08:30 - 09:15 ~ 0.75 ~ SAFETY ~ MTG_ ~ PR2EVL 09:15 - 10:00 0.75 RURD OTHR PR2EVL 10:00 - 10:20 0.33 PUMP_ N2_ PR2EVL 10:20 - 10:30 0.17 TEST_ EOIP PR2EVL 10:30 - 10:45 0.25 PUMP N2 PR2EVL 10:45 - 11:00 0.25 PUMP_ N2_ PR2EVL 11:00 - 11:15 0.25 PUMP_ N2_ PR2EVL 11:15 - 11:30 0.25 PUMP_ N2_ PR2EVL 11:30 - 11:55 0.42 PUMP N2 PR2EVL At 5000'. 93 degree F, 40 psi. RIH logging. Fluid level @ 5040'. Tag TD tai 8010'. 145 degree F, 1153 psi. POOH to 4650' logging. At 4650'. Fluid level 4850'. 91 degree F, 17 psi. Call and discuss with Ken. POOH. OOH. 21 psi. 63 degree F. RD for the night. Secure tree and location for the night. Turn in permit. Call operations. Leave loc and lock gate. Obtain safe Work Permit. Holp PJSM. Discuss Expro JSA. Discuss alarms, muster area, emergency reponse, and spectators. Discuss specific job tasks and overall objective for todays job. Spot equipment. RU N2 pumps and lines to flow cross on tree. Transferring N2 to Combi unit. Cooling down pump. PTest pumps and lines to 5000 psi. Test good. Release pressure. Open well head. Start pumping N2 @ 300 scf/m. Increase rate to 850 scf/m @ 460 psi. Pumping N2 - 975 scf/m 700 psi. Pumping N2 - 915 scf/m 1000 psi. Pumping N2 - 1000 scf/m 1400 psi. Pumping N2 - 1000 scf/m 1800 psi. Printed: 5/29/2008 3:25:10 PM Marathon Oil Company Page 11 of 13 Operations Summary Report Legal Well Name: PAXTON 2 Common Well Name: PAXTON 2 Spud Date: 1/7/2008 .Event Name: ORIGINAL COMPLETION Start: 2/6/2008. End: Contractor Name: GLACIER DRILLING Rig Release: 2/15/2008 Group: Rig Name: GLACIER DRILLING Rig Number: 1 Date From - To Hours Code Code Phase Description of Operations 5/2/2008 11:55 - 12:15 0.33 PUMP_ N2_ PR2EVL Pumping N2 - 1000 scf/m 2620 psi. 12:15 - 12:35 0.33 PUMP_ N2_ PR2EVL Pumping N2 - 1000 scf/m 3250 psi. 12:35 - 12:50 0.25 PUMP N2 PR2EVL Pumping N2 - 1000 scf/m 3990 psi. Pumped 123,600 scf. 12:50- 13:10 0.33 PUMP_ N2_ PR2EVL Pumping N2 - 1000 scf/m 4400 psi. Pressure broke over and are pumping in @ 4100 psi 13:10 - 13:30 0.33 PUMP_ N2_ PR2EVL Pumping N2 - 1000 scf/m 4300 psi. 13:30 - 13:34 0.07 PUMP_ N2_ PR2EVL Pumping N2 - 1000 scf/m 4490 psi. Pumped 171,000 scf. Shut down. 13:34 - 13:40 0.10 RURD_ EQIP PR2EVL Stand by watching WHP. Holding 4290. psi. 13:40 - 13:50 0.17 RURD_ EQIP PR2EVL IWHP 4270 psi. 13:50 - 14:00 0.17 RURD_ EQIP PR2EVL SIWHP 4210 psi. 14:00 - 14:15 0.25 RURD_ EQIP PR2EVL SIWHP 4180 psi. 14:15 - 14:30 0.25 SECUR WELL PR2EVL Close all valves on tree, pumps and lines. Remove cap and close SSV. Turn in permit and leave loc. 5/3/2008 08:00 - 08:45 0.75 SAFETY MTG_ PR2EVL Obtain safe Work Permit. Holp PJSM. Discuss Expro/ BJ's JSA. Discuss alarms, muster area, emergency reponse, and spectators. Discuss specific job tasks and overall objective for todays job. 08:45 - 09:10 0.42 RURD_ ELEC PR2EVL RU Epro. PU lubricator. MU PT 1-11/16" PT tool string. (Rope socket, 2.71" roller boogie, 7' wt bar., roller boogie, 7' wt bar, roller boogie, 12' 1-11/16" PT tools, roller boogie). 09:10 - 09:20 0.17 RURD_ ELEC PR2EVL Cant' lubricator to WH. 09:20 - 09:30 0.17 TEST_ EQIP PR2EVL PTest lubricator. Test good. 09:30 - 11:05 1.58 LOG_ CSG_ PR2EVL RIH w/ PT Tools. WHP 2701 psi. 55 Degree F 11:05 - 11:07 0.03 LOG_ CSG_ PR2EVL Tag fluid level @ 7905'.. Top pert @ 7899'. 11:07 - 12:00 0.88 LOG CSG_ PR2EVL Tag TD @ 8006'. 144 degree F 3470 psi. 12:00 - 12:25 0.42 _ LOG_ CSG_ PR2EVL OOH. Bleed lubricator. LD PT tool string. PU 4-1/2" CIBP on Baker 10 settin tool 12:25 - 12:35 0.17 SAFETY MTG_ PR2EVL Hold Explosives Safety Meeting. SHut down all radios, generators and cell phones. Check for stray voltage on WH. Post signage and guard at gate to location. 12:35 - 12:40 0.08 RUNPU ELEC PR2EVL Arm CIBP. Test OTS. 12:40 - 14:10 1.50 RUNPUL ELEC PR2EVL RIH w/ 4-1/2" CIBP. 14:10 - 14:20 0.17 LOG_ CSG_ PR2EVL Run correlation pass. 14:20 - 14:30 0.17 PR2EVL Pull up into position. CCL @ 7882'. Set CIBP ~ 7890'. PU. Set weight down on CIBP. Takes weight. CIBP in place @ 7890'. 14:30 - 15:30 1.00 RUNPU ELEC PR2EVL POOH. 15:30 - 15:45 0.25 PR2EVL OOH. Vent lubricator. PU 38' of 3-3/8" OD hollow carrier perforating guns loaded 6 spf, 60 degree phased w/SDP-3125-311 NT4 charges and PX-1 firing head. 15:45 - 15:50 0.08 SAFETY MTG PR2EVL Hold Explosives Safety Meeting. SHut down all radios, generators and _ cell phones. Check for stray voltage on WH. Post signage and guard at gate to location. 15:50 - 16:05 0.25 RURD_ ELEC PR2EVL Arm guns. PU 38' of 3-3/8" Owen hollow carrier guns. 16:05 - 17:11 1.10 RUNPUL ELEC PR2EVL RIH w/ 38" of 3-3/8" OD Owen hollow carrier perforating guns loaded 6 spf, 60 degree phased w/ SDP-3125-311 NT4 charges and PX-1 firing head. Start bleeding N2 pressure down to 1300 psi. 17:11 - 17:17 0.10 LOG_ CSG_ PR2EVL Run correlation pass. 17:17 - 18:05 0.80 PERF_ CSG_ PR2EVL Pull up into position (7528' CCL). Shoot guns 7536'- 7574' (OH) 7535'-7573' (CH). Didn't loose weight. POOH. TIME PRESSURE (psi) 17:17 1300 shoot guns 17:18 1320 17:20 1345 17:21 1360 Printed: 5/29/2008 3:25:10 PM • Marathon Oil Company Page 12 of 13 Operations Summary Report Legal Well Name: PAXTON 2 Common Well Name: PAXTON 2 Spud Date: 1/7/2008 Event Name: ORIGINAL COMPLETION Start: 2/6/2008 End: Contractor Name: GLACIER DRILLING Rig Release: 2/15/2008 Group: Rig Name: GLACIER DRILLING Rig Number: 1 Date From - To ~ Hours Code Phase Description of Operations Code 5/3/2008 17:17 - 18:05 0.80 PERF_ CSG_ PR2EVL 17:22 1375 17:24 1400 17:26 1425 17:28 1450 17:30 1470 17:32 1490 17:34 1510 17:36 1525 17:38 1545 17:40 1560 17:45 1590 17:55 1640 Build up should be available on SKADA. 18:05 - 19:00 0.92 RURD_ ELEC PR2EVL OOH. LD lubricator and spent guns. All guns fired. Guns totally dry. 19:00 - 19:15 0.25 SECUR WELL PR2EVL Secure well head and loc. Tum in permit. Stop by SD pad to talk w/ operators. Turn well over to operations to flow test. Sign out. 5/8/2008 10:00 - 10:45 0.75 SAFETY MTG_ PR2EVL Obtain safe Work Permit. Holp PJSM. Discuss Expro/ BJ's JSA. Discuss alarms, muster area, emergency reponse, and spectators. Discuss specific job tasks and overall objective for todays job. 10:45 - 11:00 0.25 RURD_ ELEC PR2EVL RU Epro. Rehead rope socket. MU lubricator. 11:00 - 11:20 0.33 RURD_ ELEC PR2EVL PU lubricator. MU toolstring w/ Gamma Ray/CCL. 11:20 - 11:30 0.17 SAFETY MTG_ PR2EVL Hold Explosives Safety Meeting. SHut down all radios, generators and cell phones. Check for stray voltage on WH. Post signage and guard at gate to location. 11:30 - 11:48 0.30 RURD_ ELEC PR2EVL Arm guns. PU 10' of 3-3/8" Owen hollow carrier guns. PTest lubricator. Test good. 11:48 - 12:38 0.83 RUNPU ELEC PR2EVL RIH w/ 10' of 3-3/8" OD Owen hollow carrier perforating guns loaded 6 spf, 60 degree phased w/SDP-3125-311 NT4 charges and PX-1 firing head. Well flowing 3.7 MMscf @ 804 psi. 12:38 - 12:40 0.03 RUNPU ELEC PR2EVL Shut well in. 12:40 - 12:50 0.17 LOG_ CSG_ PR2EVL Run correlation pass. 12:50 - 12:52 0.03 LOG_ CSG_ PR2EVL Pull up into position (7402' CCL). 12:52 - 12:55 0.05 PERF_ CSG_ PR2EVL WHP 1240 psi. Shoot guns 7406' - 7416' (CHI 7408'- 7418' (OH). 3-3/8" OD Owen hollow carrier perforating guns loaded 6 spf, 60 degree phased w/SDP-3125-311 NT4 charges and PX-1 firing head. Build up should be available on SKADA. 12:55 - 13:00 0.08 RUNPU ELEC PR2EVL POOH. 13:00 - 13:40 0.67 RUNPU ELEC PR2EVL WHP 1400. Begin flowing well. Turn well over to operations to flow test. 13:40 - 14:20 0.67 RURD_ ELEC PR2EVL OOH. LD lubricator and spent guns. All guns fired. Guns very wet. 14:30 - 15:00 0.50 SECUR WELL PR2EVL Secure well head and loc. Turn in permit. Stop by SD pad to talk w/ operators. Sign out 5/9/2008 08:00 - 08:30 0.50 SAFETY MTG_ PR2EVL Obtain safe Work Permit. Holp PJSM. Discuss Expro/ BJ's JSA. Discuss alarms, muster area, emergency reponse, and spectators. Discuss specific job tasks and overall objective for todays job. 08:30 - 09:00 0.50 RURD_ ELEC PR2EVL PU lubricator. MU toolstring w/ rope socket, 2.71" roller boogie, wt bar, roller boogie, wt bar, roller boogie, 1-11/16" Gamma Ray/CCUcapacatance probe, pressure, temperature tools. 09:00 - 09:25 0.42 PR2EVL PTest lubricator to 2000 psi. Test good. Well flowing thru Sand Buster. 09:25 - 09:50 0.42 LOG_ CSG_ PR2EVL Open swab vlave. WPH 880 gauge. PT gauge 878 psi, 37 degree F. RIH w/ PT tools. Notice some water slugging from ZXP packer up to 33_60' on capacitance probe. 09:50 - 10:20 0.50 LOG CSG PR2EVL Continue RIH. Printed: 5/29/2008 3:25:10 PM Marathon Oil Company Page 13 of 13 Operations Summary Report Legal Well Name: PAXTON 2 Common Well Name: PAXTON 2 Spud Date: 1/7/2008 Event Name: ORIGINAL COMPLETION Start: 2/6/2008 End: Contractor Name: GLACIER DRILLING Rig Release: 2/15/2008 Group: Rig Name: GLACIER DRILLING Rig Number: 1 I ~ Code Code Phase Description of Operations Date From - To Hours 5/9/2008 10:20 - 10:25 0.08 LOG_ CSG_ PR2EVL Tag CIPB (cD 7890'. 1184 psi. 143 degree F 10:25 - 10:35 0.17 LOG_ CSG_ PR2EVL Start Up pass to 7000'. Top of water in the sump @ 7635' 10:35 - 10:50 0.25 LOG_ CSG_ PR2EVL End up pass @ 7000'. Start down pass. 10:50 - 10:55 0.08 LOG_ CSG_ PR2EVL End down pass @ 7700'. Start 5 min bench @ 7700', 1115 psi. 135 degree F. 10:55 - 11:00 0.08 LOG_ CSG_ PR2EVL End 5 min bench @ 7700', 1111 psi, 140 degree F. 11:00 - 11:05 0.08 LOG_ CSG_ PR2EVL Start 5 min bench @ 7555', 1064 psi., 126 degree F. 11:05 - 11:08 0.05 LOG_ CSG_ PR2EVL End 5 min bench @ 7555', 1063 psi., 118 degree F. 11:08 - 11:12 0.07 LOG_ CSG_ PR2EVL Start 5 min bench @ 7410', 1060 psi., 117 degree F. 11:12 - 11:29 0.28 LOG_ CSG_ PR2EVL End 5 min bench @ 7410', 1060 psi., 117 degree F. 11:29 - 11:34 0.08 LOG_ CSG_ PR2EVL Start 5 min bench @ 6000', 1035 psi., 116 degree F. 11:34 - 12:11 0.62 LOG_ CSG_ PR2EVL End 5 min bench @ 6000', 1033 psi., 116 degree F. 12:11 - 12:16 0.08 LOG_ CSG_ PR2EVL Start 5 min bench @ surface 878 psi., 53 degree F. 12:16 - 12:22 0.10 LOG_ CSG_ PR2EVL End 5 min bench @ surface 877 psi., 52 degree F 12:22 - 12:50 0.47 RURD_ ELEC PR2EVL OOH. 12:50 - 13:00 0.17 SAFETY MTG_ PR2EVL Hold Explosives Safety Meeting. Shut down all radios, generators and cell phones. Check for stray voltage on WH. Post signage and guard at gate to location. 13:00 - 13:28 0.47 RURD_ ELEC PR2EVL Arm guns. PU 15' of 3-3/8" Owen hollow carrier guns. PTest lubricator to 2000 psi. Test good. 13:28 - 14:10 0.70 RUNPU ELEC PR2EVL RIH w/ 15' of 3-3/8" OD Owen hollow carrier perforating guns loaded 6 spf, 60 degree phased w/SDP-3125-311 NT4 charges and PX-1 firing head. Well flowing 3.9 MMscf @ 804 psi. 14:10 - 14:15 0.08 LOG_ CSG_ PR2EVL Run correlation pass. 14:15 - 14:16 0.02 RUNPU ELEC PR2EVL Shut well in. 14:16 - 14:23 0.12 LOG_ CSG_ PR2EVL Pull up into position (7387' CCL). 14:23 - 14:25 0.03 PERF_ CSG_ PR2EVL WHP 1210 si. Shoot uns 7391' - 77406' (CH 7393'- 7408' OH . 3-3/8" OD Owen hollow carrier perforating guns loaded 6 spf, 60 degree phased w/ SDP-3125-311 NT4 charges and PX-1 firing head. Build up should be available on SKADA. 14:25 - 14:30 0.08 RUNPU ELEC PR2EVL POOH. 14:30 - 15:10 0.67 RUNPUL ELEC PR2EVL WHP 1400. Begin flowing well. Turn well over to operations to flow test. 15:10 - 17:00 1.83 RURD_ ELEC PR2EVL OOH. LD lubricator and spent guns. All guns Fred. 17:00 - 17:30 0.50 SECUR WELL PR2EVL Secure well head and loc. Well flowing thru Sand Buster. Blow down Sand Buster recover estimated 2-3 bbls water. Tum in permit. Stop by. SD pad to talk w/ operators. Sign out Printed: 5/29/2008 3:25:10 PM Paxton #2:PTD #207-1640 Maunder, Thomas E (DOA) Page 1 of From: Maunder, Thomas E (DOA) Sent: Wednesday, April 30, 200$ 4:53 PM To: 'Walsh, Ken' Cc: Brown, Loretta R.; Cissell, Wayne E.; Donovan Jr, Dennis M.; Ibeie, Lyndon; Mullin, Mickey; Rang, Craig L.; Skiba, Kevin J.; Sulley, Michael Subject: RE: Paxton #2:PTD #207-1640 Ken, You captured our conversation correctly. The work is to establish initial production. Good luck finding gas. I will place a copy of this message in the file. Tom Maunder, PE AOGCC From: Walsh, Ken [mailto:kdwalsh@marathonoil.com~ Sent: Wednesday, April 30, 2008 4:49 PM To: Maunder, Thomas E (DOA) Cc: Brown, Loretta R.; Cissell, Wayne E.; Donovan Jr, Dennis M.; Ibele, Lyndon; Mullin, Mickey; Rang, Craig L.; Skiba, Kevin 7.; Sulley, Michael Subject: Paxton #2:Pt`D #207-1640 Tom, Per our telephone conversation this afternoon, I am sending this email to update you on wellwork in the Paxton #2 since you last approved setting a cast iron bridge plug over the perforated intervals in the well at that time, 8032'-8052' and 8106'-8120' MD. The cast iron bridge plug was set at 8022' MD after displacing the wellbore fluid back into the perfs by bullheading nitrogen down the casing. I have attached a wellbore diagram as the well is currently completed for your information. Since that time, Marathon has perforated and tested three more Tyonek intervals;_7955'-79.70', 7940'-7949', and_7899'-7926' MD. These intervals also tested wet and are not considered to contain commercially viable gas. Marathon requests approval at this time to again displace the produced fluid in the wellbore back into the newly opened perforations by bullheading nitrogen down the 4-1/2" casing. Marathon would then set another cast iron bridge plug at about 7890' MD, which would isolate the last three perforated intervals. Marathon would then continue to add new perforations uphole, purge with nitrogen, and isolate with a cast iron bridge plug until we are able to establish commercial gas production from this well. Please confirm that you agree that, Marathon is not required to file a Form 10-403 to perform the proposed work to isolate these non-productive intervals. As was the determination on the previous request to isolate intervals in this well, the AOGCC considers this work part of the initial completion phase under the permit to drill attempting to establish gas production. Marathon agrees to document all of this work in the Form 10-407 submission for the completion. 9lei 5/1/2008 KB: 21' AGL (171' KB Elevation) API#: 50-133-20573-00-00 Permit # : 207-1640 ProoertV Des: ADL 384372 WBS #: DD.07.16241.CAP X= 206,414.356 (NAD27) Y_= 2,230,614.114 (NAD27) Lat: 80 OS' 43.394'° N Lone: 151 36' 38.544" W Spud: 06:30 hre 0111 812 0 0 8 TD: 06:00 hrs 2/1/2008 Released Ri 18:00 hrs 2115!2008 KOP LID 325° MD/TVD Build 4.0 degl100' from 487-9362' MD Hold 38.35 deg from 1362-2668' MD Drop 3.0 deg/100` to 3918' MD Hoid 0 deg from 3918' to TU at 8448' MD Chemical Injection Nipple @2,39T MD (Top) 5.750" OD/3 89f Liner cracker with 6' Tieback Extension @ 3,667' MD (Top) Liner i,anger @ 3701' MD (Top) Joint Top @7987 MD (20' long) Jcini Top @7012' MD (20' long) 4-112" CIBP ~ 8,022' Paxton #2 Ninilchik Unit 746' FNL, 2914' FEL i. Sec. 13, T1S, R14W, S.M. Formation Tops: Fornadon Depth IMDI Depth ISSND) Betuga Tyonek TKT 3946' 3328 Tyonek T2 4896' 4278' Tyonek T3 B048' 5430' TD 8448' 8000' c ~ c ;~ TD: 8,436' MD 7,985' ND PBTD: 8,273' MD 7,822' ND O Well Name & Number Paxton #2 Lease: Ninilchik Unit County or Parish: Kenai Peninsula Borou h Slate/Prov: Alaska Count USA An le KOP and De the 4 An Ie/Perfs: 0 KOP TVD): 325' Date Com leted: Ground Level above MSL): 150' RKB (above GL): 21' Prepared B : Crai Ran Last Revision Date: 03/10108 Conductor 20" K55 133 ppf PE T~ eo om MD 0' 714 Chemiwllnjection ND 0' 174' Nipple ~ 2,397' MD Surface Casino 10J14" J55 45.5 ppf BTC T~ Bottom MD 0' 7,617' ND 0' 1,487' 73-112" hole with 457sks (202 bbls) 12 ppg Type 1 Cmt with 100% retums and 40 bbls Cmt to surface. Intermediate Casino 75/8" L50 29.7 ppf BTC T~ Bottom MD 0' 3,902' ND 0' 3,d53' 9-718" hole wkh 265sks (99 bbls) 72.0 ppg Type t Lead Cmt 6 150sks (31 bbls) 15.8 ppg Class G Cmt Tail. Slight interface retums to surface. Tie-backTubina 4-112" L50 12.5 ppf Hyddl 583 Tom Botto MD 0' J,68T ND 0' 3,219' Production Liner 4-1/2" L50 12.8 ppf HYdril 583 T~ Bottom MD 3,885' 8,385' ND 3,237' 7,934' 6-314" hole Cmt w/ 284 sks (210 bbls) 10.5 ppg Class G, 100% Returns. 25 bbls cmt retums. Proposed Tyone MD k Perfs: ND F; Tyonek Perfs: MD ND Ft 7,899' - 7,926' 7,448' - 7,475' 27° 7,940' - 7,949' 7,489' • 7,498' 9' 7,955' - 7,970 7,504' - 7,b19' 14° 8,032' - 8,052' 7,581' - 7,601' 20' (Patched) 8,106' - 8,120' 7,655' - 7,669' 14' (Plugged) Paxton #2 Plan forward: Set CIBP and pert Page 1 of 1 i r Maunder, Thomas E (DOA) From: Maunder, Thomas E (DOA) Sent: Tuesday, April 22, 2008 2:41 PM To: 'Walsh, Ken' Cc: Brown, Loretta R.; Cissell, Wayne E.; Donovan Jr, Dennis M.; !bale, Lyndon; Mullin, Mickey; Rang, Craig L.; Skiba, Kevin J.; Sulley, Michael Subject: RE: Paxton #2 (207-164) Plan forward: Set. CIBP and pert Ken and Kevin, Thanks for providing the message. You are (still) attempting to establish the initial completion within the Tyonek formation. It is not necessary to submit a sundry for the work as described in your message. It is appropriate to keep us informed as done here as operations proceed. Call or message with any questions. Tom Maunder, PE AOGCC From: Walsh, Ken [mailto:kdwalsh@marathonoil.com] Sent: Tuesday, April 22, 2008 2:36 PM To: Maunder, Thomas E (DOA) Cc: Brown, Loretta R.; Cissell, Wayne E,; Donovan Jr, Dennis M.; Ibefe, Lyndon; Mullin, Mickey; Rang, Craig L; Skiba, Kevin J.; Sulley, Michael Subject: Paxton #2 Plan forward: Set CIBP and pelf Tom, Kevin Skiba discussed with you on the phone today Marathon's proposed plan forward for the Paxton #2 completion under PTD #207-164 and Sundry #308-077. Marathon has perforated and tested two Tyonek intervals in this wellbore. The interval, 8106'-8120' MD, is open and non-gas productive. The other Tyonek interval, 8032'-8052' MD, was tested wet and isolated with a permanent casing patch across 8028'-8054' MD. Marathon proposes to set a CIBP at or about 8026' MD to isolate both of these intervals and then begin perforating the next interval above at 7955'-7970' MD. We will continue perforating uphole as required and within the Tyonek interval per the Form 10-401. We would like to start the work to set the CIBP tomorrow, Wednesday, April 23, 2008. Would you please review and send an email to confirm that Marathon will not be required to file a separate Form 10-403 to isolate the two intervals that have been perforated and are non- prod uctive? ~~ Ken D. Walsh Senior Production Engineer Marathon Oil Company-Alaska Asset Team 907-283-1311 (office) 907-394-3060 (cell) 4/22/200$ ~ ~ Maunder, Thomas E (DOA) From: Rang, Craig L. [crang@marathonoil.com] Sent: Monday, March 17, 2008 8:37 AM To: Maunder, Thomas E (DOA) Subject: RE: Paxton #2 (207-164) Page 1 of l Tom -good questions. Our reservoir engineers wants an entirely dry casing across the proposed perforations. I will push the produced water back into the perforations from 8032' - 8052' and set the patch. Since there is only 60 feet of water above the perforations (< 1 bbl) I will go in with a slickline bailer to bail out that water so the perforations will be dry. The Baker retainer will not be available in time, but I do want to use it if possible on the GO # 7 after it is drilled. From: Maunder, Thomas E (DOA) [mailto:tom.maunder@alaska.gov] Sent: Wednesday, March 12, 2008 3:00 PM To: Skiba, Kevin J.; Rang, Craig L. Subject: Paxton #2 (207-164) Craig and Kevin, A couple of questions regarding the sundry Craig delivered yesterday. Is it not possible to "push" nearly all the water into the existing perforations? If that is possible, is the remaining 60' of water above the planned pert interval problematic? Thanks in advance. Call or message with questions. Tom Maunder, PE AOGCC 3/18/2008 ~~~~a~~ ~ ~~~~U ~,~~~~~,~~~ti~~~ ALASKA OII, A1~TD GA,S COI~SERVA7`I019T COllII-'IISSI011T Craig L. Rang. Senior Completions Engineer Marathon Oil Company PO Box 1949 Kenai, Alaska 99611-1949 Re: Ninilchik Unit Field, Tyonek Gas Pool, Paxton #2 Sundry Number: 308-077 Dear Mr. Rang: SARAH PALIN, GOVERNOR 333 W. 7th AVENUE, SUITE 100 ANCHORAGE, ALASKA 99501-3539 PHONE (907) 279-1433 FAX (907) 276-7542 Enclosed is the approved Application for Sundry Approval relating to the above referenced well. Please note the conditions of approval set out in the enclosed form. When providing notice for a representative of the Commission to witness any required test, contact the Commission's petroleum field inspector at (907) 659-3607 (pager). As provided in AS 31.05.080, within 20 days after written notice of this decision, or such further time as the Commission grants for good cause shown, a person affected by it may file with the Commission an application for rehearing. A request for rehearing is considered timely if it is received by 4:30' PM on the 23rd day following the date of this letter, or the next working day if the 23rd day falls on a holiday or weekend. A person may not appeal a Commission decision to Superior Court unless rehearing has been requested. Sincerely, Daniel T. Seamount, Jr. Chair DATED this' ~ day of March, 2008 Encl. M Marathon MARATHON Oil Company Marathon Oil Company Alaska Asset Team P.O. Box 1949 Kenai, AK 99611 Telepho?/~' /C Fax 907/ gr G ~ V G MAR 1 1 2008 March 10, 2008 Alaska Oil ~ Gas Cons. Commission Anchorage Mr. Tom Maunder Alaska Oil & Gas Conservation Commission 333 W 7t" Ave Anchorage, Alaska 99501 Reference: 10-403 Sundry Notice Field: Ninilchik Gas Field Well: Paxton #2 Dear Mr. Maunder: Attached and submitted for your records is the Form 10-403 for the completion work performed in the Paxton #2. The well was perforated in the Tyonek formation from 8032' - 8052' MD. The interval produced water and your approval is requested to plug that interval and production test additional Tyonek formation from 8106' - 8120': ~~~_ The procedure approval requested is to perforate several permeable water producing formations from 8200' - 8210' and $222' - 8232'. Use BJ Services N2 unit to pump nitrogen into the casing and push the water back into the formation. Set a Baker Model N cement retainer Size 2AA at 8190 feet. Set a Owens casing patch across the existing perforations from 8032' - 8052' and then continue pumping the rest of the fluid in the casing into the wet formations below the cement retainer. Dump bail 10 feet of cement on top of the retainer. Perforate the interval from 8106' - 8120' and production test. Add additional intervals as needed to meet production goals. Also attached for your records is the well schematic. If you have any technical questions or need further information please call me at (907) 283-1372. Please send any return correspondence to Kevin Skiba at the letterhead address above. Non-technical questions should be directed to Kevin at (907) 283-1371. Sincerely, i ~~ Craig Rang Senior Completions Engineer Enclosures: 10-403 Sundry cc: Well Schematic Kenai Well File ORIGINAL Kevin Skiba Houston Well File Craig Rang y ., STATE OF ALASKA °~ ~ RCVE~~ . ~ ALASKA OIL AND GAS CONSERVATION COMM SION ,b APPLICATION FOR SUNDRY APPROVAL MAR i i a 20 AAC 25.280 ~\~ ~.~~ 1. Type of Request: Abandon ^ Suspend ^ Operational shutdown ^ Perforate 8 Od & `f.~IS. u.~ ~1 13~9tCa~C ^ Alter casing ^ Repair well ^ Plug Perforations ^~ Stimulate ^ Time Ext~q~ y Change approved program ^ Pull Tubing ^ Perforate New Pool ^ Re-enter Suspended Well ^ 2. Operator Name: Marathon Oil Company 4. Current Well Class: 5. Permit to Drill Number: Development ^ Exploratory ^ 207-164 3. Address: p.0. Box 1949 Stratigraphic ^ Service ^ 6. API Number: Kenai, Alaska 99611-1949 50-133-20573-00-00 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: ^ Y ^ N Paxton #2 o Spacing Exception Required? es 9. Property Designation: 10. KB Elevation (ft): 11. Field/Pool(s): - ADL- 384372 ~ 171' Ninilchik Unit / Tyonek Pool 12. PRESENT WELL CONDITION SUMMARY Total Depth MD (ft): Total Depth TVD (ft): Effective Depth MD (ft): Effective Depth TVD (ft): Plugs (measured): Junk (measured): 8,436' 7,985' 8,273' 7,822' NA NA Casing Length Size MD TVD Burst Collapse Structural Conductor g3' 20" 114' 114' 3,060 psi 1,500 psi Surface 1,596' 10-3/4" 1,617' 1,487' 3,580 psi 2,090 psi Intermediate 3,881' 7-5/8" 3,902' 3,453' 6,890 psi 4,790 psi Production 8,415' 4-1 /2" 8,436' 7,985' 8,430 psi 7,500 psi Liner Perforation Depth MD (ft): Perforation Depth TVD (ft): Tubing Size: Tubing Grade: Tubing MD (ft): 8,032' - 8,052' 7,581' - 7,601' NA NA NA Packers and SSSV Type: Packers and SSSV MD (ft): ZXP Liner Packer 3,667' 13. Attachments: Description Summary of Proposal Q 14. Well Class after proposed work: Detailed Operations Program ^ BOP Sketch ^ Exploratory ^ Development 0 Service ^ 15. Estimated Date for 16. Well Status after proposed work: Commencing Operations: 3/17/2008 Oil ^ Gas ^~ Plugged ^ Abandoned ^ 17. Verbal Approval: Date: WAG ^ GINJ ^ WINJ ^ WDSPL ^ Commission Representative: 18. I hereby certify that the foregoing is true and correct to the best of my knowledge. Contact Kevin Skiba (907) 283-1371 Printed Name Craig L. Rang Title Senior Completions Engineer Signature Phone Date (907) 283-1372 March 10, 2008 COMMISSION USE ONLY Conditions of approval: Notify Commission so that a representative may witness Sundry Number: _]~J~ '~~ `~''-t-' al Integrity Test ^ Location Clearance ^ BOP Test ^ Mechanic Plug Integrity ^ l ` Other: ~icL~~C©~~U\ ~~V~\~l"~~CN~T ~'~ ~CL6~~ ~ r ~ ~p+~~~~c~~~ ~ • ~ ~ ~ S T ~ Subsequent Form Required: ~~~~ E:i~-Ci~~~'On5 ~ ~~ ~O~ APPROVED BY Approved by: COMMISSIONER THE CO MISSION Date: Form 10 40 Reed 06/2006 ~ ~ ~ G I N A L ~~~f ~ ~ "~~~"' Submit in Duplicate ,. U 50-133-20573.00-00 )~ 207-1640 Des: ADL 364372 :_ DD.07.16241.CAP 206,414.356 (NAD27) 2,230,614.114 (NAD27) 60 OS' 43.394" N 151 36' 38.544" W 06:30 hrs 01/18/2008 06:00 hrs 2/1/2008 KOP @ 325' MDITVD Build 4.0 deg/100' from 487-1362' MD Hold 38.35 deg from 1362-2668' MD Drop 3.0 degN00'to 3918' MD Hold 0 deg from 3918' to TD at 8448' MD Paxton #2 Ninilchik Unit 746' FNL, 2914' FEL Sec. 13, T1S, R14W, S.M. Chemical Injection Nipple @ 2,397' MD Tubing String - 4.5", 12.6#, L-80, Hydril 563 Casing String - 4.5", 12.6#, L-80, Hydril 563 Baker Chemical Injection Nipple @2,397' MD (Top) 5.750" OD/3.895" ID ZXP Liner Packer with 6' Tieback F~dension @ 3,667' MD (Top) Flex-Lock Liner Hanger @ 3701' MD (Top) Marker Joint Top @7987' MD (20' long) Marker Joint Top @7012' MD (20' long) Expro Radial Bond Log - 02/192008 r ~.~. ~ r., ,_ _... Formation Tops: Formation Depth IMD) Depth ISSTVD) Beluga Tyonek TKT 3946' 3328 Tyonek T2 4896' 4278' Tyonek T3 6048' 5430' TD 8448' 8000' TD: 8,436' MD 7,985' TVD PBTD: 8,273' MD 7,822' TVD M ~Aiw-rnoM Conductor 20" K-55 133 ppf PE Two Bottom MD 0' 114 TVD 0' 114' Surface Casina 10-314" J-55 45.5 ppf BTC Tom Bottom MD 0' 1,617' TVD 0' 1,487' 13-112" hole wtth 457aks (202 bbls) 12 ppg Type 1 Cmt wtth 100% returns and 40 bbla Cmt to surface. Intermediate Casina 7.518" L-80 29.7 ppf BTC Two Bottom MD 0' 3,902' TVD 0' 3,453' 9-718" hole with 265aka (99 bbls) 12.0 ppg Type 1 Lead Cmt & 150sks (31 bbls) 15.8 ppg Class G Cmt Tail. Slight Interface returns to surface. Tie-backTubina 4.112" L-60 12.6 ppf Hydril 563 Tom Bottom MD 0' 3,667' TVD 0' 3,219' Production Liner 4.112" L-80 12.6 ppf Hydril 563 T~ Bottom MD 3,665' 8,385' TVD 3,237' 7,934' 6-3/4" hole Cmt w/ 284 sks (210 bbls) 10.5 ppg Class G, 100 % Returns. 25 bbls cmt returns. Proposed Tvone k Perfs: MD TVD Ft 7,899' - 7,926' 7,448' - 7,475' 2T 7,940' - 7,952' 7,489' - 7,501' 12' 7,955' • 7,970' 7,504' - 7,519' 14' 8,106' - 8,120' 7,655' - 7,669' 14' Tvonek Perfs: MD TVD Ft 8,032' - 8,052' 7,581' - 7,601' 20' Well Name & Number: Paxton #2 Lease: Ninilchik Unit Count or Parish: Kenai Peninsula Borou h State/Prov: Alaska Count USA An le @KOP and Depth: 4 An le/Perfs: 0 KOP TVD : 325' Date Completed: Ground Level above MSL : 150' RKB above GL : 21' Pre ared B : Crai Ran Last Revision Date: 03/10108 9 f:Z= ~ ~ `;~,~,~ • X Y Agency 206410.00.2230525.00 Operator 206414.00 2230614.00 Difference -4.00 -89.00 `'' SARAH PAL/N, GOVERNOR CO~S+~RQ~-''Q n ~ I~ 333 W 7th AVENUE. SUITE 100 jI ....~~~~iiiiiiil l.~~jj~~r~~~uuu~~•iiii---777 ANCHORAGE, ALASKA 99501-3539 Wlllard Tank PHONE (907) 279-1433 Advanced Senior Drilling Engineer FAx (907) 276-7542 Marathon Oil Company 3201 C. Street, Suite 800 Anchorage, AK 99503 Re: Ninilchik Unit Field, Tyonek Pool, Paxton 2 Marathon Oil Company Permit No: 207-164 Surface Location: 746' FNL, 2,914' FEL, SEC. 13. T1S, R14W, S.M Bottomhole Location: 760' FSL, 2 602' FEL, SEC. 12 T1S, R14W, S.M. Dear Mr. Tank Enclosed is the approved application for permit to drill the above referenced development well. This permit to drill does not exempt you from obtaining additional permits or an approval required by law from other governmental agencies and does not authorize conducting drilling operations until all other required permits and approvals have been issued. In addition, the Commission reserves the right to withdraw the permit in the event it was erroneously issued. The proposed producing location for this well requires a spacing exemption due to proximity to property boundaries. The required conservation order will be issued prior to the intended spud date. Operations must be conducted in accordance with AS 31.05 and Title 20, Chapter 25 of the Alaska Administrative Code unless the Commission specifically authorizes a variance. Failure to comply with an applicable provision of AS 31.05, Title 20, Chapter 25 of the Alaska Administrative Code, or a Commission order, or the terms and conditions of this permit may result in the revocation or suspension of the permit. When providing notice for a representative of the Commission to witness any required test, contact the Commission's petroleum field inspector at (907659-3607 (pager). J DATED this day of December, 2007 cc: Department of Fish & Game, Habitat Section w/o encl. Department of Environmental Conservation w/o encl. M Marathon MARATHON Oil Company December 3, 2007 Worldwide Drilling North America P.O. Box 3128 Houston, TX 77253-3128 Telephone 713-629-6600 Fax 713-499-6737 ~~~~ John Norman Commissioner State of Alaska Alaska Oil & Gas Conservation Commission 333 West 7t" Ave, Suite 100 Anchorage, AK 99501 Reference: Drilling Permit Application Field: Ninilchik Well: Ninilchik Unit -Paxton 2 Dear Mr. Norman ~t='~` ~ ~ ~~n7 1~1~1«ic~ ~iI ~ G~;; Ccn~~ C~~imi~~iAn ~Oi;Fidrag~ Enclosed please find the PERMIT TO DRILL application, along with the associated attachments. The intent is to drill a Tyonek development well. Please note that the surface coordinates for this well and the directional plan are now utilizing North American Datum 1983 (NAD 83) as required in the latest BLM 43 CFR Part 3160, Onshore Order No. 1, dated March 7, 2007. Getting well and surface equipment coordinates on this GPS based standard (NAD 83) has been an effort that Marathon has been working on and will continue to progress. The state plane coordinates for the surface location on the PERMIT TO DRILL have been converted back to NAD 27 for your database usage. If you require further information, I can be reached at 713-296-3273 or by a-mail at wjtank@ marathonoil.com. Sincerely, Dig ~ ~`" ~~ ~- Willard J. T nk V a Advanced Senior Drilling Engineer Enclosures • i ~ f''! STATE OF ALASKA ~a1`"1 ~~`~"'~~~~~ ALASKA OIL AND GAS CONSERVATION COMMISSION ~~~ ~ ~ ~~~7 PERMIT TO DRILL 20 AAC 25.005 1 a. Type of Work: 1 b. Current Well Class: Exploratory ^ Development Oil ^ 1 a Specify if we is' propose orb~ flflrr Drill 0 Redrill ^ Stratigraphic Test ^ Service ^ Development Gas Q Coalbed Methane ^ ~~'G'9~~drates ^ Re-entry ^ Multiple Zone ^ Single Zone Q Shale Gas ^ 2. Operator Name: 5. Bond: Blanket Q Single Well ^ 11. Well Name and Number: Marathon Oil Company Bond No. 5194234 Ninilchik Unit -Paxton 2 3. Address: 6. Proposed Depth: 12. Field/Pool(s): 3201 C. Street, Suite 800, Anchorage, AK 99503 MD: 8,448 TVD: 8,000 Ninilchik Unit 4a. Location of Well (Governmental Section): 7. Property Designation: Tyonek Pool Surface: 746' FNL, 2,914' FEL, Sec. 13, T1 S, R14W, S.M. Fee Lease Tract 163 ~,~3~,3~~ Top of Productive Horizon: 8. Land Use Permit: 13. Approximate Spud Date: 760' FSL, 2,602' FEL, Sec. 12, T1S, R14W, S.M. December 20, 2007 Total Depth: 9. Acres in Property: 14. Distance to Nearest 760' FSL, 2,602' FEL, Sec. 12, T1 S, R14W, S.M. 33.21 Property: 215 ft (Fee Lease 162) 4b. Location of Well (State Base Plane Coordinates): NAD 27 10. KB Elevation 15. Distance to Nearest Well Surface: x - 206,414.356 y - 2,230,614.114 Zone - 4 (Height above GL): (21' AGL) 171 feet Within Pool: 2,260 ft to Paxton 1 16. Deviated wells: Kickoff depth: 325 feet 17. Maximum Anticipated Pressures in psig (see 20 AAC 25.035) Maximum Hole Angle: 38.354 degrees Downhole: 3,827 Surface: 2,069 18. Casing Program: Specifications Top -Setting Depth -Bottom Cement Quantity, c.f. or sacks Hole Casing .Weight Grade Coupling Length MD TVD MD TVD (including stage data) Driven 20" 133 K-55 PE 114' 0' 0' 114' 114' 13 1/2" 10 3/4" 45.5 K-55 BTC 1,609' 0' 0' 1,630' 1,500' 453 sacks 9 7/8" 7 5/8" 29.7 L-80 BTC 3,898' 0' 0' 3,919' 3,471' 221 sacks lead, 128 sacks tail 6 3/4" 4 1/2" 12.6 L-80 Hydril 563 4,728' 3,720' 3,273' 8,448' 8,000' 282 sacks 19. PRESENT WELL CONDITION SUMMARY (To be completed for Redrill and Re-Entry Operations) Total Depth MD (ft): Total Depth TVD (ft): Plugs (measured): Effect. Depth MD (ft): Effect. Depth TVD (ft): Junk (measured): Casing Length Size Cement Volume MD TVD Conductor/Structural Surface Intermediate Production Liner Perforation Depth MD (ft): " o Perforation Depth TVD (ft): 20. Attachments: Filing Fee ~, BOP Sketch Q Drilling Program Q Time v. Depth Plot ^ Shallow Hazard Analysis ^ Property Plat ^~ Diverter Sketch Q Seabed Report ^ Drilling Fluid Program Q 20 AAC 25.050 requirements ^ 21. Verbal Approval: Commission Representative: Date 22. I hereby certify that the foregoing is true and correct. Contact Printed Name Willard J. Tank Title Advanced Senior Drilling Engineer Signature pt„ [~~T Phone 713-296-3273 Date December 3, 2007 Commission Use Only Permit to Drill API Number: Permit Appr See cover letter for other Number: ~ /~~ 50-f3 .ojp~~~pQ(~b Date: h requirements. Conditions of approval : If box is checked, well may not be used to explore for, test, or produce coalbed metha e, g hydrates, or gas contained in shales: [~ Other: }}''~~ ~~, Samples req'd: Yes No © Mud log req'd: Yes No^ ~~ ~®v Q`~ ~ *~~~~ ~r`7~ HzS measures: Yes^ No [~ ectional svy req'd: Yes[ No^ ~ APP OVED BY THE COMMISSION DATE: ,~~ ~~~ " ~ ,COMMISSIONER Form 10-401 Revised 12/2005 ("'~ ('1 ~ ~ I ~ ~ ~ Submit in Duplicate ~~ pE~ ~ ~ 1~~~ Paxton 2 Drilling Program MARATHON MARATHON OIL COMPANY DRILLING PROGRAM Paxton 2 Originator: Will Tank Reviewed by: Pete Berga December 3. 2007 Date Date Brian Roy Date Marathon Oil Company Alaska Business Unit 12/3/2007 CONFIDENTIAL MATERIAL Page 1 of 18 CJ Paxton 2 Drilling Program Marathon Oil Company Alaska Business Unit TABLE OF CONTENTS 1. Emergency Response Information ..................................................... .........................................:...................4 1.1 Directions to Location ......................................................................... .............................................................4 1.2 Rig Contact Numbers ......................................................................... .............................................................4 1.3 Marathon Emergency Response Contacts ......................................... .............................................................4 1.4 Outside Emergency Response ........................................................... .............................................................4 1.5 Marathon Contact List ......................................................................... .............................................................5 2. Regulatory Agency Contacts .............................................................. .............................................................5 2.1.1. Internal Regulatory Contact ................................................................ .............................................................5 2.1.2. External Regulatory Contact ............................................................... .............................................................5 3. Regulatory Compliance ...................................................................... .............................................................5 4. Drilling Program Summary .................................................................. .............................................................6 4.1 General Well Data .............................................................................. .............................................................6 4.2 Working Interest Owners Information ................................................. .........................................................:...6 4.3 Geologic Program Summary .............................................................. .............................................................6 4.4 Summary of Potential Drilling Hazards ............................................... .............................................................7 4.5 Formation Evaluation Summary ......................................................... .............................................................7 4.6 Drilling Program Summary .................................................................. .............................................................8 4.7 Casing Program Summary ................................................................. ...........................................................10 4.8 .Casing Design ...............................:..................................................... ...........................................................10 4.9 Calculation of Maximum Anticipated Pressures (MAWP and MASP) ...........................................................10 4.10 Casing Test Pressure Calculations .................................................... ...........................................................12 4.11 Blowout Prevention Equipment, Testing and General Procedures ..... ..........................................................12 4.11.1. Function Testing ................................................................................. ...........................................................12 4.11.2. Pressure Testing ................................................................................. ...........................................................13 4.12 Wellhead Equipment Summary ....................................................................................................................13 4.13 Directional Program Summary ............................................................ ...........................................................13 4.14 Directional Surveying Summary .......................................................... ..........................................................14 4.15 Drilling Fluid Program Summary .......................................................... ..........................................................15 4.16 .Drilling Fluid Specifications .................................................................. ..........................................................15 4.17 Solids Control Equipment ................................................................... ...........................................................16 4.18 Cement Program Summary ...........................................................................................................................17 4.19 Bit Summary ........................................................................................ ..........................................................17 4.20 Hydraulics Summary ............................................................................ ..........................................................18 4.21 Formation Integrity Test Procedure ...............................................................................................................18 12/3/2007 CONFIDENTIAL MATERIAL Page 2 of 18 C~ Paxton 2 Drilling Program i Marathon Oil Company Alaska Business Unit Attachments Grou Attachment Attached Commercial Information AFE Da s/Cost vs. De th Curves X Pro'ect Ob'ectives and Scorecard RSO Codin Information X Re uisitions Vendor List Bonus Pro ram Drillin Contract Re ulator / HES Information Emer enc Evacuation Plan X H2S Contin enc Plan n/a Re ulato Permits X Re ulato Rules and Re ulations Risk Anal sis Miscellaneous Pro rams Vendors Bit Pro osal X Cement Pro osal X Directional Plan X Fluids Pro ram X Wellhead E ui ment - Descri tion/Drawin s Drill Strin and BHA Summa Ri Mobilization/Moorin Procedure n/a Geolo ical Information Location Ma w/ offsets X Offset Data Pro osed Formation Pore Pressure, Mud Wt & Fracture Gradient X Tem erature Curves Geolo is Structure Ma s Geolo is Cross Section Bath met Ma n/a Analysis Riser Anal sis n/a Station Kee in Anal sis -Moorin /DP n/a Stress Check Casin Desi n File X Maximum Allowable Over ull Miscellaneous Information Wellbore Dia ram n/a Ri Elevations X Well Location Dia ram X BOP Schematic X BOP Well Control Brid in Document Detailed Casin S ecifications X Detailed Drill Pi e S ecifications 12/3/2007 CONFIDENTIAL MATERIAL Page 3 of 18 CJ Paxton 2 Drilling Program u Marathon Oil Company Alaska Business Unit 1. Emergencv Response Information 1.1 Directions to Location Method Directions Air Latitude - 60°05'43.743"N Longitude - 151 °36'38.721 "W (NAD 83) From the Kenai airport, go 0.5 mile South on Willow Street. Turn East on Main Street Loop, go 0.3 miles. Continue East on Ground Bridge Access Road 3.2 miles. Turn West on Kalifornsky Beach Road. Go West and then South, go 16.9 miles. Turn South on Sterling Highway, go 21 miles. Turn West onto road to the pad (Sterling Highway milepost 130.8). 1.2 Rig Contact Numbers Contact Office Cell Glacier Drilling Rig 1 Inlet Drilling Tool Pusher 907-283-1314 907-394-1321 Marathon Supervisor 907-283-1312 907-394-1317 1.3 Marathon Emergencv Response Contacts Individual Postion Main Phone Alternative Kenai Gas Field Emergency Number 907-283-6465 CERT 24 hrs Notification 1-800-MOC-CERT CERT Crisis Center Houston 713-296-4230 713-296-4237 1.4 Outside Emergencv Response Location Contact Phone Fire Kenai /Soldotna, Alaska 907-262-4792 Ambulance Hospital Kenai /Soldotna, Alaska Central Peninsula Hospital 907-262-4404 Police Kenai /Soldotna, Alaska Kenai Police Soldotna Police State Police 907-283-7879 907-262-4455 907-262-4453 Coast Guard 800-478-5555 Spill and Contamination Alaska Alaska State Spill Reporting National Response Center Oil /Toxic Chemical Spills 800-424-8802 Best Practices: 1 Policy: Post emergency notification information on rig floor, company man's and tool pushers' office Comments: 12/3/2007 CONFIDENTIAL MATERIAL Page 4 of 18 Paxton 2 Drilling Program C~ Marathon Oil Company Alaska Business Unit 1.5 Marathon Contact List Contact Title Office Mobile Facsimile Home Will Tank Drilling Engineer 713-296-3273 713-203-8398 713-499-6737 832-934-2617 Pete Berga Drilling Superintendent 907-565-3032 907-529-0551 907-565-3076 907-346-3763 Bryan Roy Drilling Manager 713-296-3256 832-444-4772 713-499-6707 281-246-4686 Scott Szalkowski Geologist 713-296-3390 713-301-9834 Clyde Scott Reservoir Engineer 713-296-2336 Craig Rang Completion Engineer 907-283-1372 907-394-1824 Ken Walsh Production Engineer 907-283-1311 907-394-3060 907-283-3050 John Nicholson Drilling Supervisor 907-283-1312 907-394-2641 907-283-1313 Dan Byrd Drilling Supervisor 907-283-1312 907-394-2641 907-283-1313 Mitch Burns Drilling Supervisor 907-283-1312 907-394-2641 907-283-1313 2. Requlatorv Agency Contacts 2.1.1. Internal Requlatorv Contact Contact Title Office Phone Cell Phone Home Phone Facsimile Chick Underwood Re ulato Compliance 713-296-3254 979-830-7927 979-836-9390 713-499-6748 2.1.2. External Requlatorv Contact Contact Title Office Phone Facsimile 24 hr Emer enc Pa er AOGCC 907-793-1236 3. Requlatorv Compliance Regulation Requirement 20 AAC 25.035 a 10 A BOP testing interval requirement is now 14 days. 20 AAC 25.035 a 10 F Requirement fora 24 hour notice to AOGCC prior to BOP test. Comments 12/3/2007 CONFIDENTIAL MATERIAL Page 5 of 18 Paxton 2 Drilling Program 4. Drilling Program Summary 4.1 General Well Data Marathon Oil Company Alaska Business Unit Well Name Paxton 2 Lease /License Surface Location 746' FNL, 2,914' FEL, Sec. 13, T1S, R14W, S.M. WBS Code DD.07.16241.CAP.DRL Slot/Pad Paxton Pad Field Ninilchik Unit Spud Date 12/20/07 (est.) KB (above MSL) 171' County/Province Kenai Peninsula API No. GL (above MSL) 150' State /Country Alaska Permit No. Perm. Datum KB .Total MD 8,448' Well Class Development Water Depth N/A Total TVD 8,000' Rig Contractor Glacier Drilling Water Protection Depth Rig Name Glacier Rig 1 Best Practices: Comments: 4.2 Working Interest Owners Information Com an Workin Interest Address Phone Facsimile Marathon 60% P.O. Box 196168 g07-561-5311 907-565-3076 Anchora e, AK 99519-6168 Chevron -Texaco 40% 4.3 Geologic Program Summary Surface Location Coordinates - NAD 83 From Lease/Block Lines 746' FNL, 2,914' FEL, Sec. 13, T1 S, R14W, S.M. Latitude 60° 05' 43.743"N Longitude 151° 36' 38.721" W UTM North (Y) 2,230,373.005' UTM East (x) 1,346,433.820' Tolerance Pore Pore MD -RKB TVD -RKB Pressure Pressure Possible Formation (ft) (ft) (psi) (ppg) Lithology Fluid Content Tyonek (Primary Target) 3,947 3,499 3.80 - 9.20 Sandstone Gas 12/3/2007 CONFIDENTIAL MATERIAL Page 6 of 18 C~ Paxton 2 Drilling Program i Marathon Oil Company Alaska Business Unit Depth (KB) Horizontal Displacement (ft) Target MD (ft) TVD (ft) Location +N/-S (Y) +E/-W (X) Tolerance (ft) Tyonek 3,947 3,499 760' FSL, 2,602' FEL, Sec. 12, T1 S, R14W, S.M. 1,506 312 Circle 250' radius Tyonek T-2 4,897 4,449 760' FSL, 2,602' FEL, Sec. 12, T1 S, R14W, S.M. 1,506 312 Circle 250' radius Tyonek T-3 6,049 5,601 760' FSL, 2,602' FEL, Sec. 12, T1S, R14W, S.M. 1,506 312 Circle 250' radius TD 8,448 8,000 760' FSL, 2,602' FEL, Sec. 12, T1 S, R14W, S.M. 1,506 312 Circle 250' radius 4.4 Summary of Potential Drilling Hazards De B Hazard Event ~ j Discussion Precautions D Bit or BHA balling Surface Hole Maintain high pump rates to keep bit and BHA clean. Use extra circulation time if necessary. Intermediate Use good hole cleaning techniques with sufficient Excessive pumping on bottom could Excessive Torque & Production pump rates. Add lubricant where necessary. result in hole washout and formation Hole breakdown due to excess ECD. 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) is responsible for shutting the well in (BOPE or diverter as applicable) as soon as warning signs of a kick are detected and an influx is suspected or confirmed. A copy of the approved permit to drill must be kept on location and be readily available to the AOGCC inspector. This well's primary objective is gas and no oil sands are expected to be encountered. No HzS is anticipated. Gas sands will be encountered from +/- 3,947' MD (3,499' TVD) to total depth of the well. These sands will run from slightly depleted to slightly above normal pressure. The Flo-Pro mud system that will be properly weighted to hydraulically control all sands and lost circulation materials will be available on location, if required. Best Practices: 1 Comments: 4.5 Formation Evaluation Summary Interval LWD Electric Logs Mud Logs Surface None None None 0' - 1,630' MD Intermediate None Reeves Quad Combo on drill pipe shuttle. Basic with GCA, shale density, temperature in and 1,630' - 3,919' MD out, sample collection (10' samples). Production None Reeves Quad Combo on drill pipe shuttle, ' ' Basic with GCA, shale density, temperature in and 3,919 - 8,448 MD MFT through 4 1/2" csg. Pull GR-Neutron out, sample collection (10' samples). to tie into Intermediate run. Completion N/A GR, CCL, CBL N/A Comments: 12/3/2007 CONFIDENTIAL MATERIAL Page 7 of 18 • Paxton 2 Drilling Program 4.6 Drilling Program Summary Drive Pipe: N/A Marathon Oil Company Alaska Business Unit Conductor: 20" set to approximately 100', prior to drilling rig move. MIRU drilling rig. NU diverfer. 1. RU conductor rig. Drill/Drive 20" conductor to +/-100 ft. RKB. RD conductor rig. 2. Move in and rig up rotary drilling rig. 3. Install starting head 20" SLC x 21 1/4", 2M flanged. 4. Nipple up 21 1/4", 2M diverter, 16" diverter valve, and 16" diverter line. 5. Function test diverter and diverter valve. Best Practices: 1 Comments: Surface: Drill 13-1/2" hole to +/- 1,630' set 10-3/4" casing. 1. Drill a 13 1/2" hole to 1,630' MD (1,500' TVD) per the directional plan. 2. Run and cement 10 3/4" casing. 3. Cut off 10 3/4" casing. ND diverter. 4. Install 10 3/4" slip lock connection X 11" 5M flanged multibowl wellhead. 5. NU 11" 5M X 13 5/8" adapter spool. NU 13 5/8" 5M BOP'S. Test BOP's and choke manifold to 250/2,500 psi. 6. Set wear bushing. Test surface casing to 2,000 psi. Best Practices: 1 During cementing operations, take returns in the cellar, instead of into the pits. Eliminates the clean up of pits from cement that circulated to surface. Vac trucks will pull from cellar. Comments: Intermediate: Drill 9-7/8" hole to +/- 3,919' set 7 5/8" casing. 1. PU 9 7/8" PDC bit and directional BHA. Drill out float equipment and 20' of new formation. CBU. 2. Test shoe to an FIT of 15 ppg. Estimated leakoff EMW is 18.5 ppg. 3. Drill 9 7/8" directional hole to 3,919' MD (3,471' TVD) as per directional program, short tripping as required. 4. At TD circulate hole clean. Make wiper trip. TOOH. 5. RU logging company. Run open hole logs on drill pipe utilizing the shuttle system. TOOH with logging tool. Pull wear bushing. 6. Change out pipe rams with 7 5/8" casing rams in single ram. Run test plug and test casing rams to 2,500 psi. 7. Run and cement 7 5/8" casing. Land hanger in multibowl wellhead. 8. Back out landing joint. Change out 7 5/8" casing rams with pipe rams. Run test plug and test BOP's to 250/2,500 psi. 9. Set wear bushing. Test intermediate casing to 2,000 psi. Best Practices: 1 Pre-heat mud mix water to help in early shaker screen blinding issues with the mud. Comments: Production Liner: Drill 6 3/4" hole to +/- 8,448' set 4-1 /2" liner. Tie back to surface with 4-1/2" tubing. 1. PU 6 3/4" bit and directional BHA. Drill float equipment and 20' of new formation. CBU. 2. Test shoe to an FIT of 15 ppg. Estimated leakoff EMW 16.5 ppg. 12/3/2007 CONFIDENTIAL MATERIAL Page 8 of 18 Paxton 2 Drilling Program i Marathon Oil Company Alaska Business Unit 3. Drill a 6 3/4" hole to an anticipated TD of 8,448' MD (8,000' TVD) as per the directional program, short tripping as required. 4. At TD circulate hole clean. Make wiper trip. TOOH. 5. RU logging company for shuttle system. Run quad combo open hole logs as per plan on drill pipe shuttle. TOOH and lay down shuttle equipment and 3 1/2" drill pipe. 6. PU and TIH with 4 1/2" Hydril 563 casing to the first setting depth for the MFT log. RU and run MFT pressure points through 4 1/2" Hydril 563 casing. After completing the MFT log run, POOH with logging tool. TOOH with 4 1/2" Hydril 563 casing, laying it down. RD logging company. 7. TIH w/ 6 3/4" tri-cone bit to TD for wiper trip. TOOH and laydown BHA and drill pipe. Pull wear bushing. 8. RU and run 4 1/2" Hydril 563 casing liner with hanger on drill pipe. Run liner to TD with top of liner at approximately 3,720' MD. On bottom reciprocate and rotate liner while circulating the hole. 9. RU cementing company. Cement 4 1/2" while reciprocating and rotating pipe. Drop wiper plug and bump plug to pressure up and set the liner hanger. Release hanger running tool, pickup and clear seal area of any cement. Pick up out of liner. 10. Circulate hole clean. If cement circulates, TOOH. If cement doesn't circulate, WOC, then prepare and pump liner top job. 11. Once cement is either circulated or the liner top is squeezed, PU mill for 4 1/2" along with string mill for 7 5/8" casing. Make cleanout trip to top of 4 1/2" liner with mill combo on drill pipe. Polish 4 1/2" liner seal bore. 12. Run 4 1/2" liner hanger packer with hydraulic pusher tool. Stab into polish bore receptacle and set packer. TOOH laying down drill pipe. 13. Run 4 1/2" Hydril 563 casing with seal unit and subsurface safety valve. Displace hole with 6 %KCL. Space out tubing and land hanger. ND BOP, NU tree and test to 5,000 psi. 14. Rig down and move out drilling rig. Best Practices: 1 Make up torque shown for the Hydril 563 is 80% of yield. The final make up torque for the liner should exceed any potential torque that would be used to release the running tool from the hanger. Comments: Completion: Completion will be done without a rig. The completion will encompass work to run a cement bond log, displace the KCL water in the wellbore with nitrogen, perforate several Tyonek intervals, and test the well for rate and pressure. No stimulation of the perforating intervals is anticipated. Best Practices: 1 Comments: 12/3/2007 CONFIDENTIAL MATERIAL Page 9 of 18 Paxton 2 Drilling Program Marathon Oil Company Alaska Business Unit 4.7 Casing Program Summary MD (ft) Connection API Ratings Casing Makeup Hole L .-. a ~. o y Size Weight ID Drift O. D. Torque Size m' °- o ~- ~ (in) Top Bottom (Ibs/ft) (in) (in) Grade Type (in) (ft-Ibs) (in) U ~ 103/4 0 1,630 45.5 9.950 9.794 K-55 BTC 11.750 N/A* 131/2 3,580 2,090 715 7 5/8 0 3,919 29.7 6.875 6.750 L-80 BTC 8.500 N/A * 9 7/8 6,890 4,790 683 4 1/2 3,720 8,448 12.6 3.958 3.833 L-80 Hydril 563 5.200 10,080 6 3/4 8,430 7,500 288 Best Practices: 1 Have float equipment made up at Tubescope's yard prior to bringing casing to location. Buck on all equipment to the pin end and not make up to box below, due to rig height restrictions. 2 Make up torque shown for the Hydril 563 is 80% of yield. The final make up torque for the liner should exceed any potential torque that would be used to release the running tool from the hanger. * -Make up buttress connection to proper mark, not to a torque value. Comments: 4.8 Casing Design Casing Shoe Safety Factors Setting Maximum Casing Depth Mud Wt Frac. Form Surface Q o Size Weight TVD When Set Grad Press Pressure ~ o (in) (Ib/ft) Grade (ft) (Ib/gal) (Ib/gal) (Ib/gal) (psi) m U ~ 10 3/4 45.5 L-80 1,500 9.2 18.5 8.5 818 1.40 2.92 2.68 7 5/8 29.7 L-80 3,471 9.4 16.5 8.7 2,069 2.63 2.83 2.90 41/2 12.6 L-80 8,000 9.6 16.5 9.2 2,069 1.10 1.88 1.80 4.9 Calculation of Maximum Anticipated Pressures (MAWP and MASPI Setting Casing Depth Size TVD MAWP * MASP ** Mud/Gas (in) (ft) (psi) (psi) Percentage 10 3/4 1,500 2,420 818 30/70 7 5/8 3,471 4,787 2,069 30/70 4 1/2 8,000 4,787 2,069 30/70 * MAWP =Maximum allowable working pressure ** MASP =Maximum anticipated surface pressure The calculation method for MASPaHP has been modified from the standard AOGCC use of a Bottom Hole Pressure - 0.1 psi/ft gas gradient to what Marathon considers a more accurate Bottom Hole Pressure - 30% Mud Column - 70% Gas Column. This method follows the MMS standard for any well with a TVD of 12,000' or less. Marathon believes that constant gas monitoring and proper rig supervisor well control training will prevent the possibility of a wellbore being completely evacuated with only a gas gradient remaining. 12/3/2007 CONFIDENTIAL MATERIAL Page 10 of 18 • Paxton 2 Drilling Program Marathon Oil Company Alaska Business Unit Surface casing: 10 3/4" (1,630' MD, 1,500' TVD) MASPfrao =((Fracture gradient at shoe) x .052 x TVDsnoe) -Hydrostatic pressure of gas column at the shoe. MASPfrao = (18.5 ppg x .052 x 1,500') - (0.1 psi/ft x 1,500') MASPfrao = 1,443 pSl - 150 psi MASPfrao= 1,293 psi. MASPbnP = BHPoPe„ noie,d -Hydrostatic pressure of mud portion -Hydrostatic pressure of gas portion MASPnnP = (8.7 ppg x .052 x 3,471')) - (0.3 x 9.4 ppg x .052 x 3,471') - (0.7 x 0.1 psi/ft x 3,471') MASPnnP = 1,570 psi - 509 psi - 243 psi MASPbnP = 818 psi MASP =MASPbnP = 818 psi MAWP = (0.7 x Casing Burst) - (Mud Wt. -Backup Fluid Wt.) x .052 x TVD MAWP = (0.7 x 3,580) - (9.4 - 8.3) x .052 x 1,500' MAWP = 2,506 psi - 86 psi = 2,420 psi Intermediate casina: 7 5/8" (3,919' MD, 3.471' TVD) MASPfrao _ ((Fracture gradient at shoe) x .052 x TVDsnoe) -Hydrostatic pressure of gas column at the shoe. MASPfrao = (16.5 ppg x .052 x 3,471') - (0.1 psl/ft x 3,471') MASPfrao = 2,978 psi - 347 psi MASPfrao = 2,631 psi. MASPbnP = BHPoPan no,e ~a -Hydrostatic pressure of a gas column MASPbnP = (9.2 ppg x .052 x 8,000') - (0.3 x 9.6 ppg x .052 x 8,000') - (0.7 x 0.1 psi/ft x 8,000') MASPbnP = 3,827 psi - 1,198 psi - 560 psi MASPbnP = 2,069 psi MASP =MASPnnP = 2,069 psi MAWP = (0.7 x Casing Burst) - (Mud Wt. -Backup Fluid Wt.) x .052 x TVD MAWP = (0.7 x 6,890) - (9.6 - 9.4) x .052 x 3,471' MAWP = 4,823 psi - 36 psi = 4,787 psi Production liner: 4 1/2" (Top - 3,720' MD, 3,273' TVD) (Bottom - 8,448' MD, 8,000' TVD) MASP = MASP sis° = 2,069 psi MAWP = MAWP eia° = 4,787 psi Best Practices: 1 Comments: • 12/3/2007 CONFIDENTIAL MATERIAL Page 11 of 18 • Paxton 2 Drilling Program Marathon Oil Company Alaska Business Unit 4.10 Casing Test Pressure Calculations Casing test pressures calculations are based on the lesser of (1) MASP, or (2) 70% of rated burst pressure of the casing adjusted for the mud weight used during the test less a 8.3 ppg back-up unless otherwise noted. Best Practices: 1 Comments: 4.11 Blowout Prevention Equipment. Testing and General Procedures BOP PROGR AM Casing Test Test Casing Test Fluid Pressure Size MAWP MASP press Density BOPS Low/High Casing (in) (psi) (psi) (psi) (Ib/gal) Size & Rating (psi) (1) 13-5/8" 5M annular (1) 13-5/8" 5M pipe ram Surface 10 3/4 2,420 818 2,000 9.2 (1) 13 5/8" 5M blind ram 250/2,500 (1) 13-5/8" 5M drilling spool with 3-1/8" 5M outlets (1) 13-5/8" 5M pipe ram (1) 13-5/8" 5M annular (1) 13-5/8" 5M pipe ram Intermediate 7 5/8 4,787 2,069 2,000 9.4 (1) 13 5/8" 5M blind ram 250/2,500 (1) 13-5/8" 5M drilling spool with 3-1/8" 5M outlets (1) 13-5/8" 5M pipe ram (1) 13-5/8" 5M annular (1) 13-5/8" 5M pipe ram Production 4 1/2 4,787 2,069 2,000 9.6 (1) 13 5/8" 5M blind ram 250/2,500 (1) 13-5/8" 5M drilling spool with 3-1/8" 5M outlets (1) 13-5/8" 5M pipe ram Blowout Preventers The blowout preventer stack will consist of a 13-5/8" x 5000 psi annular preventer, a 13-5/8" x 5000 psi double gate ram type preventer with blind rams in the bottom and pipe rams in the top, a 13-5/8" x 5000 psi drilling spool (mud cross) with 3-1 /8" x 5000 psi outlets, and a 13-5/8" x 5000 psi single pipe ram. The choke manifold will be rated 3-1/8" x 5000 psi. It will include a remote hydraulic actuated choke and a hand adjustable choke. Also included is a poor-boy gas buster, and avacuum-type degasser. A flow sensor will be installed in the flowline and the mud pits will contain sensors to measure the volume of fluid in the surface mud system. Both sensors will contain readouts convenient to the drillers console. 4.11.1. Function Testing Function Regularly. 12/3/2007 CONFIDENTIAL MATERIAL Page 12 of 18 • Paxton 2 Drilling Program Marathon Oil Company Alaska Business Unit 4.11.2. Pressure Testing The Marathon Drilling Supervisor will verify all pressure tests of BOP's, surface lines, seals, casings and FIT or LOT tests. All tests are to be recorded on the IADC and daily drilling reports. Best Practices: 1 Comments: 4.12 Wellhead Equipment Summary Component Description Casing Hanger Type Casing Head 11" 3M X 10-3/4" Slip Loc W/ 2, 2" LPO, Landing Base for 20" Conductor, U, AA, PSL1, PR1 10 3/4" x 7 5/8" Fluted Mandrel Tubing Head 11" 3M Studded Bottom X 11" 5M Flg Top, W/ 2, 2-1/16" 5M Studded Outlets, U,AA,PSL1,PR1 10 3/4" x 4 1/2" Mandrel Adapter Flange 11" 5M X 4-1/16" 5M W/ Seal Pocket and 3" H BPV Threads Best Practices: 1 Comments: Use a drilling spacer spool on the 10-3/4" casing head to allow for a B-Section contingency. 4.13 Directional Program Summary Build Turn Coordinates Sec. No. Description MD (ft) TVD (ft) Rate (°/100') Rate (°/100') Dogleg (°/100') Inclination (deg) Azimuth (deg) +N/-S (ft) +E/-W tft) VS (ft) 1 Tie On 0 0 0 0 0 0 65.000 0 0 0 2 KOP 325.00 325.00 0 0 0 0 65.000 0 0 0 3 Build up Section 4.00 0 4.00 65.000 4 End of Build 487.50 487.15 4.00 0 4.00 6.500 65.000 3.89 8.34 5.50 3 Build and Turn Section 4.00 0 4.00 4 End of Build /Turn 1,362.14 1,289.69 3.94 -1.10 4.00 38.354 9.859 301.47 102.62 316.02 5 Hold Section 0 0 0 38.354 9.859 6 End of Hold 2,668.20 2,313.89 0 0 0 38.354 9.859 1,099.95 241.39 1,126.04 7 Drop Section -3.00 0 3.00 9.859 8 End of Drop 3,946.67 3,499.00 -3.00 0 3.00 0.00 9.859 1,506.03 311.96 1,538.00 9 TD 8,447.67 8,000.00 0 0 0 0.00 9.859 1,506.03 311.96 1,538.00 12/3/2007 CONFIDENTIAL MATERIAL Page 13 of 18 Paxton 2 Drilling Program Marathon Oil Company Alaska Business Unit Comments: Vertical section calculated from a reference azimuth of 290.93° taken from surface location to bottom hole location. Potential Well Interference: Well Distance (ft) Depth (MD1 Paxton 1 26.53 489 No serious interference exists. See attached directional plan and anticollision analysis for more details. Best Practices: 1 Comments: 4.14 Directional Surveying Summary Interval MD (ft) MWD Survey Magnetic Multishot Gyro Multishot Other Survey Tool Remarks Surface 0 - 1,630' X Intermediate 1,630' - 3,919' X Production 3,919' - 8,448' X Best Practices: 1 Comments: • 12/3/2007 CONFIDENTIAL MATERIAL Page 14 of 18 Paxton 2 Drilling Program Marathon Oil Company Alaska Business Unit 4.15 Drilling Fluid Program Summary Interval-TVD Minimum Inventory From To Density Gel (ft) (ft) (Ib/gal) .Fluid Description Additives Viscosifier Barite 0 1,500 8.6 - 9.4 Gel / Gelex Spud Mud Gel, Gelex, Soda Ash, Caustic, Barite, Polypac Supreme UL Flo-Vis, Polypac UL, KCI, SafeCarb 10 & 40, 1,500 3,471 9.2 - 9.4 6% Flo-Pro w/ Safecarb Asphasol Supreme, Lubetex, Caustic, Conqor 404, Sodium Meta Bisulfate, Klagard Flo-Vis, DualFlo, KCI, Greencide 25G, SafeCarb 3,471 8,000 9.4 - 9.6 6% Flo-Pro w/ Safecarb 10, KlaGard, Barite, Caustic, Conqor 404, SafeScav NA, Lubetex, Asphasol Supreme Best Practices: 1 Comments: 4.16 Drilling Fluid Specifications Interval - TVD LSRV Drill From (ft) To (ft) Density (Ib/gal) Vis (seGgt) 1 min (Ib./100ftz) PV (cP) YP (Ib/100 ft2) Fluid Loss (cc) pH Solids (%) 0 1,500 8.6 - 9.4 60 - 100 N/A 25 - 35 NC -12 +/- 9.5 < 7 1,500 3,471 9.2 - 9.4 40,000 8 - 12 8 - 10 +/- 9.5 +/- 7.5 3,471 8,000 9.4 - 9.6 40,000 10 - 14 < 6 +/- g.5 +/- 5 Best Practices: 1 As a standard practice for tie-back string completions, displace the drilling mud above top of liner with brine treated with corrosion inhibitor (Conqor 303A) at a concentration of 1 drum per 100 barrels of fluid. Comments: See mud prognosis for details. Sized CaC03 (SafeCarb) will be used to control leakoff. n I,J 12/3/2007 CONFIDENTIAL MATERIAL Page 15 of 18 Paxton 2 Drilling Program Marathon Oil Company Alaska Business Unit 4.17 Solids Control Equipment o ~ y ~ rn N ' N N ~ ~ N C N U N ~ > L N N ~ N 3 7 0 Interval ~ ~ o ~ U U U N Comments 0 - 8,448' MD X X X X Closed Loop System, Full Containment, Run shakers with finest screens possible Item Equipment Specifications (quantity, design type, brand, model, flow capacity, etc) Shaker 2 -Swaco Mongoose PT Desander N/A Desilter 1 -Derrick Model 0522 Mud Cleaner N/A Centrifuge 2 - MI/Swaco units Cuttings Dryer N/A Cuttings Injection Marathon G&I Facility Zero Discharge N/A Best Practices: 1 Have vacuum trucks pull fluids from trough above slop pit to more efficiently pull fluids for disposal. This minimizes water added to the solids to suspend for pickup by the trucks, thus minimizing total volume to be disposed of. Comments: 12/3/2007 CONFIDENTIAL MATERIAL Page 16 of 18 • Paxton 2 Drilling Program • Marathon Oil Company Alaska Business Unit 4.18 Cement Program Summary Depth Gauge Top of Cement Gauge Ann Vol Slurry Casing Size (m) MD (ft) TVD (ft) Hole Size (in) MD (ft) TVD (ft) Ann Vol To TOC (ft3) With OH Excess (ft3) Density Lead/Tail (PP9) Open Hole Excess (%) Thickening Time (hrs) 20 114 114 Driven N/A 10 3/4 1,630 1,500 13 1/2 0 0 698 1,111 12.0 75 8 7 5/8 3,919 3,471 9 7/8 1,600 1,476 498 695 12.5 / 15.8 40 8 4 1/2 8,448 8,000 6 3/4 3,720 3,273 655 842 10.5 30 N/A Mix Water Compressive Casing Size Density Qty Yield Slurry Vol TOC MD Qty WL FW Strength (psi) (in) Slurry Cement Description (Ib/gal) (sx) (ft3/sx) (ft3) (ft) (gal/sx) Type (cc) (%) 8 hr 24 hr 10 3/4 Tail Type I Cement 12.0 453 2.45 ~ 1,111 0 10.20 Fresh 547 0 183 675 7 5/8 Lead Class "G" 12.5 221 2.47 545 1,600 13.78 Fresh 559 0 92 645 Tail Class "G" 15.8 128 1.17 150 3,419 4.99 Fresh 40 0 428 3,437 4 1/2 Tail Class "G" 10.5 282 2.99 842 3,720 12.36 Fresh 20 0 50 1,755 Best Practices: 1 Pump several fluid calipers at TD to help with the hole volume determination from the open hole caliper log. Comments: See cement prognosis for details and spacer specifications. Actual cement volume on production hole will be based on caliper data and cement ECD calculations. 4.19 Bit Summary Interval - MD Type Recommended Estimated From (ft) To (ft) Size (in) Manufacturer Model No. IADC WOB (kips) RPM Rotating Hours Expected Minimum ROP (fUhr) 0 1,630 13 1/2 Christensen MXL-1 117 20 - 50 80 - 300 1,630 3,919 9 7/8 Christensen HCM605 M323 Up to 25 Motor 3,919 8,448 6 3/4 Christensen HCM505Z M233 Up to 17 Motor Best Practices: 1 Comments: See bit prognosis for additional information. Back up bits for the 9 7/8" hole section will consist of PDC and mill tooth bits. Back up bits for the 6 3/4" hole section will consist of 6 3/4" mill tooth and TCI tricone bits. 12/3/2007 CONFIDENTIAL MATERIAL Page 17 of 18 Paxton 2 Drilling Program Marathon Oil Company Alaska Business Unit 4.20 Hydraulics Summary Max Press @ Displacement @ Max Rate @ Liner ID Stroke 90% WP 95% Vol. eff 95% Vol. eff Hole Sections Used Qty Make Model (in) (in) (psi) (gal/stroke) (spm/ m gp ) On 5 8 2,597 2.04 125 / 255 Surface 3 National Oil Well A600PT 5 8 2,597 2.04 125 / 255 Intermediate 5 8 2,597 2.04 125 / 255 Production Est. Hole Pump Standpipe Openhole Nozzle Depth-MD Size Rate Pressure Min AV MW ECD Size ~P at bit (ft) (in) (gpm) (psi) (fpm) (ppg) (ppg) (32"s) si Remarks (Drill string configuration) 0 - 1,630 13 1/2 625 2,334 g7 g 2 3 - 18's MI Virtual Hydraulics @ 1,630' MD 1-16 1,630 - 3,919 9 7/8 547 2,300 185 9.4 5 - 15's Actual Data from NS #3 (@ 7,243' MD) 3,919 - 8,448 6 3/4 269 1,904 223 9.4 6 - 11's MI Virtual Hydraulics @ 8,448' MD Best Practices: 1 Comments: See mud program (Virtual Hydraulics) for additional information. 4.21 Formation Integrity Test Procedure Surface and Intermediate casing shoes will be tested to Leak-off. Prior to drilling out of casing strings, test BOPs and casing to the specified pressure listed in the BOP Program section. Plot test and record volume required on the drilling report. Leak-off tests (LOT) are to be conducted as described below: 1. Drill 20' to 25' of new formation below the casing shoe and condition the mud to the same properties in and out. 2. Pull drill string into the casing shoe and close ram preventer, and line up to the choke manifold with a closed choke. 3. Begin slowly pumping fluid down the drill string at 1/2 bpm while recording casing and drillpipe pressures at 1/2 bbl intervals. A running plot of pressure versus volume should be kept by the drilling foreman while the test is in progress. 4. Stop pumping when the pressure curve departs form a straight line sufficiently to indicate leakage into the formation. Record as ppg equivalent mud density in the IADC and morning reports. 5. Monitor and plot pressure drop and time after shut-in for 10 minutes or until the shut-in pressure stabilizes. Best Practices: 1 Comments: 12/3/2007 CONFIDENTIAL MATERIAL Page 18 of 18 i i Marathon Oil Well Paxton 2 Diverter 21 1/4" 2M Diverter -r 16" Automatic Knife Valve I I~ Diverter Spool 16" Diverter Line Marathon Oil Well Paxton 2 BOP Stack Flow Nipple ~ I Flow Line 13 5/8" 5M Annular Preventer ~ 13 5/8" 5M Double Pipe Ram Ram Preventer 2 1/16" 5M Blind Ram Check Valve 2 1/16" 5M Manually 3 1/8" 5M Manually Operated Valves Operated Valve ~LV~-4J X Kill Choke LN-' J~JL1~-L I--~LJ - ~ 13 5/8" 5M Cross " 3 1/8 5M Hydraulically Pipe Ram Operated Valve 13 5/8" 5M Single Ram Preventer Bottom of Single gate must be 24-45" from ground level for Glacier 1 rig placement. 13 5/8" 5M x 13 5/8" 5M Drilling Spool 11"5Mx135/8"5MDSA i To Gas Buster X t 2 9/16" 10M Swaco Hydraulically Operated Choke °°~ X LIB-'~R ~LJLJ~-'~~ 3" 5M Valves • Marathon Oil Well Paxton 2 Choke Manifold To Blooey Line Bleed off Line to Shakers X ~~ ~ o, X °°o~ X ~ X X ~} X X X 3 1/8" 5M Manually Adjustable Choke Gauge Block Choke Hose to HCR (from BOP Stackl • Surface Use Plan for Ninilchik Unit -Paxton 2 Surface location: 746' FNL, 2,914' FEL, Sec. 13, T1 S, R14W, S.M. 1) Existing Roads The Sterling Highway will be used for access to the Paxton 2 well and is shown on the attached map. Ninilchik, Alaska is the nearest town to the site. 2) Access Roads to be Constructed or Reconstructed No new roads will be required to access Paxton 2. 3) Location of existing wells Well Paxton 2 will be drilled on Paxton pad. A pad drawing is enclosed that shows existing wells and the proposed location of Paxton 2. 4) Location of existing and/or proposed facilities The locations of existing production facilities on the Paxton pad are shown on the enclosed pad drawing. A flowline will be installed from the Paxton 2 wellhead to an existing heater and separator. 5) Location of Water Supply A water supply well exists on the pad that Paxton 2 will be drilled from. This is shown on the pad drawing. 6) Construction Materials No construction is planned on the pad. 7) Methods of handling waste disposal; a) Mud and Cuttings Cuttings will be dewatered on location. The cuttings and excess mud will be hauled to Pad 41-18 of the Kenai Gas Field for disposal into Well KU 24-7, a Class II disposal well (AOGCC Disposal Injection Order No.9, Permit #81-176). b) Garbage All household and approved industrial garbage will be hauled to the Kenai Peninsula Borough Soldotna Landfill. c) Completion Fluids Clear fluids will be hauled to Pad 34-31 of the Kenai Gas field and injected in Well WD #1, an approved disposal well (AOGCC Permit #7-194). d) Chemicals Unused chemicals will be returned to the vendors that provided them. Efforts will be made to minimize the use of all chemicals. e) Sewage Sewage will be hauled to the Kenai sanitation facility. 8) Ancillary Facilities A minimal camp will be established on the pad to house various supervisory and service company personnel. Approximately four trailer. house type structures will be required for this purpose. Bottled water will be used for human consumption. Potable water will be obtained from the existing water well on the pad. Town & Country will collect and transport sanitary wastes to their ADC approved disposal facility. No additional structures will be necessary. 9) Plans for reclamation of the surface Paxton 2 will be drilled from an existing pad. Reclamation of the pad, if required by the landowner, will occur after the abandonment of Paxton 2 and the other existing wells on the pad. 10) Surface ownership The Spencer Paxton Estate is the surface owner of the land at the Paxton pad. • Operator Certification Field: Ninilchik Well: Ninilchik Unit -Paxton 2 Surface Location: 746' FNL, 2,914' FEL, Sec. 13, T1 S, R14W, S.M. I hereby certify that I, or someone under my direct supervision, have inspected the drill site and access route proposed herein; that I am familiar with the conditions which currently exist; that I have full knowledge of state and Federal laws applicable to this operation; that the statements made in this APD package are, to the best of my knowledge, true and correct; and that the work associated with the operations proposed herein will be performed inconformity with this APD package and the terms and conditions under which it is approved. I also certify that I, or the company I represent, am responsible for the operations conducted under this application. These statements are subject to the provisions of 18 U.S.C. 1001 for the filing of false statements. Executed this 3`d day of December , 20 07 Name Willard J. Tank ~~r! ~o~., W JT Position Title Advanced Senior Drilling Engineer Address P.O. Box 3128, Houston, TX 77253-3128 Telephone 713-296-3273 Field Representative Pete Berga (Drilling Superintendent) (if not above signature) Address 3201 C Street. Suite 800, Anchorage, Alaska 99503 (if different from above) Telephone 907-565-3032 (if different from above) E-mail wjtank(a~marathonoil.com (optional) 72 7 NE CORNER S13 Ia 16 N 2231045.67 E 1349365.17 SECTION LINE (NTS) 124.2 OF THE STERLING HIGHWAY. THE ELEVATION OF S82 IS 237.12 FEET (NGVD 29). BASIS OF HORIZONTAL COORDINATES ARE ALASKA STATE PLANE NAD 83 ZONE 4 EPOCH 2003 DETERMINED BY AN NGS OPUS SOLUTION FROM CORS BASE STATIONS "TLKA PID AH2494", "ZAN1 PID DE9153"AND "GNAA PID AH2492" OBSERVED JUNE 5, 2007 ON MCI S82 ECC 2" ALUM. CAP SET ADJACENT TO BM S82 N: 2252517.780 E: 1368533.525 ELEV: 240.08 FEET. 2) NORTHEAST CORNER SEC. 13 COORDINATES DETERMINED FROM DIRECT SURVEY TIE TO THE TO EXISTING BLM SECTION CORNER RECOVERED NOT PROTRACTED SECTION CORNER VALUES. ~ h CCI ~ \ LEVEL ALDERS& PAX2 SPREADER BRUSH GRID N:2236] W.69] T GRID E:1346466 563 MAIN \ GATE PAXTON J SPENCER ESTATE ALDERSA ~ O HM GOVT. LOT 1 BRUSH d ELECTRI T01S,R14W,S13 \\\ A COMMUNICATION Q~ COMMO~RTI~ILDING ~pq0 ~ _ t, BASE 6 DIA. NINILCHIK, PAXTON EXPLORATION PAD DHAINLINK ..I JaE FENCE Z SEASONAL ~~ 1 LL izow.~ Bye . DRAINAGE TANK tyG CHANNEL 4. ~/ ° a2T ~ BORD]'l'G ~]NG R PIPE l SUPPORT I ~`.. (TYP.) 36'X80'CSP ~I _ W! ENO SECTIONS C Z O a PATRON#2 WELL PAX 1 Pq Q I' 7 GRID N3236379.5]0 GRID E:1366320.]26 ~ 2914' FEL ~~ j f' PAXTON # 1 WELL ALDER58 BRUSH ~ LBPa se " E'F"'°' PAXTON NO.2 WELL AS-BUILT LOCATION o N:2230373.005 a E:1346433.820 ~ ~ LATITUDE: ~~ `~' & 60°05'43.743"N ,~ A,b 1 ON D 36 38. 721 "W WATER WELL HDD9E «, ~ FEL = 2914' ~ . ~ ~~ ~ FNL = 746' \ \\ ` \ ELEV = 149.8 ' (NGVD29) LIMITS OF SEASONAL l ~ LE-~EL SECTION 13 DRAINAGE CHANNEL ~I ~SPREA-ER TOWNSHIP 1S 'I RANGE 14W, SM AK !, SECTION 13 T1S,R14WS.M.,AK 1•~ ~~~Ol \ PROJECT REVISION: 1 M DATE: 11114/07 ~~ ~~~ PAXTON NO. 2 WELL DRAWN BY: JZW Aw-THO AS-BUILT SURFACE LOCATION DIAGRAM SCALE: 1=100' • AIWA 1 PROJECT NO. 073138 BOOK NO. 07-11 ENGINEERING /MAPPING /SURVEYING /TESTING Consulting Inc P.O. BOX 468 SOLDOTNA, AK. 99889 LOCATION SHEET VOICE: (907)283-0278 FAX: c9o7~xe3-3266 S13 T1S R14W SEWARD MERIDIAN, ALASKA 1 GF 1 EMAIL: SAMCLANE~MCLANECG.COM • • TOPO! map printed on 11/05/07 from "Marathon Paxton No. 2.tpo" i~l-~o.wU vv 1.71'30.000 VV 1.71"S4.000 VV VVhJt54 1~1"SL.000~ VV ~ ` ~ ~ s .4 ~ N ' 7~ ~',` `' ^'' " ~ 14 ~ C 5 f, ~~ p~ t w ~~ d a~,' vti~ " .e 9 ` k IYinilchik State Pad o o :. ~ hi. P. 136.1 0 p . '~ ~. '~,1~ rN. i c_'~_~~_~I~ I1~VLE i' .. ~ `~~ ~A~~ ~~ r _ ~. ,.~ .~.. ,., o i 6 * ~ * I~1/'-I lOl~ TN /MN 0.0 0.5 1.0 1.5 miles !/ 19° GEOGRAPHIC I ~ ~~ ~~ , ~: ~, ~ ~ , ; , , . L,~ - ~ 0.0 0.5 1.0 1.5 2.0 2.5 km 11/05/07 z °o 0 0 0 z 0 0 0 r; 0 0 O Z O O O O ° O Z O D O lA O ° O Z O C' ° D Z ~1 ° • ~r.`r i.,- .~ ~~,, ~D 3 r~ +---____ _ ,r ~~ -, -~ f~ - PAKTON ~~~ ~' ~.. ,~ ,~ ,` t, _ '~ Pagta .~ Paxton Pad 18 1 mile GLACIER DRILLING RIG #1 MUD PITS AND PUMP ROOM LAYOUT ~~ • MARATHON Oil Company Location: Cook Inlet, Alaska (Kenai Penninsula) Slot: slot #2 Field: Ninilchik Field (NAD83) Well: Paxton #2 F i' P xton 2 i. U o0 100 200 300 4 1/2" Csg Production: 8000.OOft TVD, 1506.03ft N, 311.96ft El'- •825 N p RKB-171 KOP :0.00° Inc, 325.OOft MD, 325.OOft TVD, O.OOft VS Begin Tum to Tgl :6.50° Inc, 487.SOft MD, 487.15ft TVD, S.SOft VS 625 4.00°/100ft 1250 End of Curve: 38.35° Inc, 1362.14ft MD, 1289.69ft ND, 316.02ft VS \ 10 3/4" Csg Surtace: D 38.35° Inc, 1630.32(1 MD, 1500.OOft ND, 482.35ft VS 1875 2500 3125 L Pax 2 Tyonek (NADR:i~ 14Nnv-0] a N 0 3750 N U_ 1= N W 4375 P.ix?TYn~iek T2tNAGF33i 14-Nov-07 I- 5000 Begin Angle Drop: 38.35° Inc, 2668.20ft MD, 2313.89ft ND, 1126.04ft VS 3.00°/100ft 7 5/e" Csg Intermediate: 84° Inc 3918.67ft MD, 3471.OOft ND, 1537.79ft Tyonek Tgi (EOD): 0.00° Inc 3946.67ft MD 3499.OOft ND 1538.OOft VS Tyonek T2: 0.00°Inc 4896.67ft MD 4449.OOft ND 1538.OOft VS 5825TH F'.ax 2 Tyonek T3(NAD83) t4-Nov-07 - 6250 6875 Tyonek T3: 0.00° Inc 6048.67ft MD 5601.OOft ND 1538.OOft VS TD - 4 1/2" Csg Production: Pax 2 TD(NAD83) 14-Nov-07 0.00° Inc ' D 8447.67(1 MD BOOO.OOft ND 1538.OOft VS 1 1 1 1 1 1 0 825 1250 1875 2500 3125 Vertical Section (ft) s`°'°"^`""~~°" Azimuth 11.70° with reference 0.00 N, 0.00 E from wellhead 7 5/8" Csg Intermediate: 3471.OOft ND, 1505.82ft N, 311.93ft E P 10 3/a^ csg surta~e: 500.OOft TVD, 465.43ft N, 131.12ft E slot #2 ~~ . ~t+~I~~~~~~~ ~..11 1 G (~Y _. _._. _ .._ Z O 7 ~~~~K MARATHON Oil Company Location: Cook Inlet, Alaska (Kenai Penninsula) Slot: slot #2 Field: Ninilchik Field (NAD83) Well: Paxton #2 Facili Paxton Well ore: Paxton 2 ~, { ~r~yy+~ 1~iE~ Plot reference wellpath is Paxton #2 Version #4 True vertical depths are referenced to Glacier #1 (RKB) Grid System: NAD83 / TM Alaska State Plane, Zone 4 (5004), US feet Measured depths are referenced to Glacier #1 (RKB) North Reference: True north Glacier #1 (RKB) to Mean Sea Level: 171 feet Scale: True distance Mean Sea Level to Mud line (Facility - Paxton): 0 feet Depths are in feet Coordinates are in feet referenced to Slot Created by: jonethoh on 14-Nov-07 Location Information Facility Name Grid East (USft) Grid North (USft) Latitude Longitude Paxton 1349365.170 2231045.670 60° 05' 51.066"N 151 ° 35' 41.247"W Slot Local N (ft) Local E (ft) Grid East (USft) Grid North (USft) Latitude Longitude slot #2 -743.21 -2914.28 1346433.820 2230373.000 60° 05' 43.743"N 151 ° 36' 38.721 "W Glacier #1 (RKB) to Mud line (Facility -Paxton) 171ft Mean Sea Level to Mud line (Facility -Paxton) Oft Glacier #1 (RKB) to Mean Sea Level 171ft Well Profile Data Design Comment MD (ft) Inc (°) Az (°) TVD (ft) Local N (ft) Local E (ft) DLS (°/100ft) VS (ft) RKB - 171' 0.00 0.000 65.000 0.00 0.00 0.00 0.00 0.00 KOP 325.00 0.000 65.000 325.00 0.00 0.00 0.00 0.00 Begin Turn to Tgt 487.50 6.500 65.000 487.15 3.89 8.34 4.00 5.50 End of Curve 1362.14 38.354 9.859 1289.69 301.47 102.62 4.00 316.02 Begin Angle Drop 2668.20 38.354 9.859 2313.89 1099.95 241.39 0.00 1126.04 Tyonek Tgt (EOD) 3946.67 0.000 9.859 3499.00 1506.03 311.96 3.00 1538.00 Tyonek T2 4896.67 0.000 9.859 4449.00 1506.03 311.96 0.00 1538.00 Tyonek T3 6048.67 0.000 9.859 5601.00 1506.03 311.96 0.00 1538.00 TD 8447.67 0.000 9.859 8000.00 1506.03 311.96 0.00 1538.00 Targets Name MD (ft) ND (ft) Local N (ft) Local E (ft) Grid East (USft) Grid North (USft) Latitude Longitude Pax 2 Tyonek (NAD83) 14-Nov-07 3946.67 3499.00 1506.03 311.96 1346782.39 2231870.97 60° OS' 58.575"N 151 ° 36' 32.568"W Pax 2 Tyonek T2(NAD83) 14-Nov-07 4896.67 4449.00 1506.03 311.96 1346782.39 2231870.97 60° OS' 58.575"N 151 ° 36' 32.568"W Pax 2 Tyonek T3(NAD83) 14-Nov-07 6048.67 5601.00 1506.03 311.96 1346782.39 2231870.97 60° OS' 58.575"N 151 ° 36' 32.568"W Pax 2 TD(NAD83) 14-Nov-07 8447.67 8000.00 1506.03 311.96 1346782.39 2231870.97 60° O5' 58.575"N 151 ° 36' 32.568"W U MARATHON Planned Wellpath Report Paxton #2 Version #4 Page 1 of 7 BAKER E11~t~~#ES INTEQ jOpcrator MARATHON Oil Company jS1ot slot #2 Area Cook Inlet, Alaska (Kenai Penninsula) .Well Paxton #2 -- -- Field Ninilchik Field (NAD83) ~ Wellbore Paxton #2 ~Faci(~y Paxton J- Calculation method Minimum curvature llorizontal Reference Pt Slot Vertical Reference Pt Glacier #1 (RKB) MD Reference Pt _ _ .Glacier #1 (RKB) Ficld Vertical Reference ;Mean Sea Level #1 (RKB) to Facility Vertical Datum #1 (RI{B) to Mean Sea Level Vertical Datum to Mud Line (Facilit Section Origin Section Azimuth 171.00 feet 171.00 feet 0.00 feet NO.OO,EO.OOft 11.70° MD Inclination Azimuth TVD Vert Sect North East Grid East Grid North DLS Build Rate Turn Rate esign [feet] [°] [°] ~feetJ [feet] Meet] [feet] [us survey feet] [us survey feet] [°/100ft] [°/100ft] [°/100ft] Comments 0.00 0.000. 65.000 0.00 0.00 0.00' 0.00 1346433.82 2230373.00 0.00 0.00 0.00 - 171' 100.001 0.000 0.000 100.00 0.00 0.00. 0.00 1346433.82 2230373.00 0.00 0.00 0.00 200.001 0.000 0.000 200.00 0.00_ 0.00 0.00 1346433.82 2230373.00 0.00 0.00 0.00' 300.001 0.000' 0.00 0 300.00 0.00 0.00' 0.00 1346433.82 2230373.00 0.00 0.00 0.00 ~ ~~ ~ ~1 ~~~~I~u I ~ ~~ ~ ~ ~ ~~ -. ~ 1 3 a III 00~001 4 3.000 65~000 3 1 7 0.83 1.78 1346435.62 223037 79 4.00 4.00 0.00 487.50 6.500 65.000 487.15 5.50 3.89 ' 8.34 1346442.26 2230376.69 4.00 4.00 0.00 egin Turn to 500.001 6.744 61.216 499.57 6.40 4.54 9.63 1346443.56 2230377.31 4.00 1.96' -30.27 600.001 9.451 . „~ 39.893 ~ $ 598.58 17.46 13.67 '~ ° ~~ I' ' ~ 20.05 1346454.19. ~ 2230386.18 4.00 'i~i m ' J ~ ~ ~ ~ 2.7L ' ~ -21.32 k '~ ~ 800.001. 16.513~~ 22.450 793.42 ... 59.92 _ ~ , ~ _, V ~ i 111 I ~~m 52.61 ~i~~~, ~~~~. 41.47 ~ ~ -~ ..~ . 1346476.56. ..., , ,_.~ 223042458 ~ ~~~il ~ ~l ~~l ~9~ ~~I~ ~~~ ~ ~l~ ~ i 4.00 k .... 3.67.~ ~ ~ -6.37 ,~ ~.~ ~9~u~ ~'~~~ ~~~ ~~ 900.001 20.302 18.372 888.29 _ 91.13 82.22 52.37_ 1346488.17 _ 2230453 92 4.00 3.79 _ -4.08 ~~ 1000.001 24.157 15.542 980.84 128.79 _____ 118.41 63.32 _ 1346500.01 2230489.83 4.00 3.86 -2.83 ~- 1100 001 28 051 13 453 1070 63 172 73 161.01 74.28 1346512.00 ~ 2230532.15 ' 4 00 3.89 _ - 2.09 »~.a .._v_._~.-z ...u,~ _T ~,.. ~, , ~~ __~ VIII ,-.. ~~G,h, .., . .~' __ ---- ~ - ..... .~_~1 .~s..,.~ ... r~~~.,W..~,..~,... - ~~~ _ °~.,.~~ d w. .. - ~, ~~d~I~VIVhi~~~:.. LL ~,' 1300.001 35.904 10.5_45 1240.15_ 278.53 264.56 95.99 1346536.23 2230635.15 4.00 3.93 -1.29. 1362.14 38.354 9.859 1289 69 316.02 ~~ 301.47 102.62 1346543.76 22306 71.88 4.00 3.94 -1.10 End of Curve 1400.001 38.354 9.859 1319 38 339.51 324.62 106.65 1346548.35 _ 2230694.93 _ _ 0.00 0.00 0.00 1500.001 38.35 4 9.859 1397.80 401.53 385.76 117.27 1346560.46 2230755.79 0.00 0.00 0.00 `~ ~ c~ ~ . s1 ~ ~~ ~ III ~~ _. -s : ~~ ~ ..... ~ .... ~ ~~ 1700.001 38.354 9.859 1554.64 525.57 508 03 138.52 1346584.68 2230877.50 0.00 0.00 0.00 1800.001 38.354. 9.859 1633.06 587.59 569.17 149.15 1346596.79 2230938.36 0.00 0.00' 0.00 1900.001 38.354 9.859 1711.48_ 649.61 630.30 159.77 1346608.90 ' 2230999.22 0.00 0.00 0.00 2000.001 38.354 9.859 1789.90: 711.63 691.44 170.39 ~~1346621.01 2231060.08 0.00 0.00 0.00 ~-- Planned Wellpath Report gp,~ER Paxton #2 Version #4 N~~~~'~ ~A~A~H{~N Page 2 of 7 1N 1 Fi MD [feet] 2200.00 2300.00 2400.00 2500.00 ~~d 2668.20 2700.00 3100. 3200. 3300. 36 37 38 39 4100 4200 Inclination I°1 Azimuth [°1 38.354 9.85 38.354 9.85 38.354 9.85 38.354 9.85 ,~~„,1 ii V~ 38.354 ~6 9.85 37.400 9.85 34.400 9.85 31.400. 9.85 25.400 9.85 22.400 9.85 19.400 9.85 16.400. 9.85 _~ 10.400 9.85 7.400 9.85 4.400 9.85 1.400] 9 O.000I 0 0.000 0.000 0 0.000 TVD Vert Sect feet] [feet) 1946.73 ' 835.67 2025.15 897.69 2103.57 959.71 2181.99 ' 1021.73 2313.89 ~~.~_ 1126.04 2338.99 1145.56 2419.99 1204.16 2503.94 771258.44 ..vim 2679.79 ~ ,, ~wkW,4'~A ;. 1353.47 2771.20 1393.96 2864.61 1429.62 2959.76 1460.33 3154.23. 1506.64 3253.01 .1522.10 3352.47 1532.37 3452.33 1.537.43 3552.33 1538.00 3652.33 1538.00 3752.33 1538.00 3852.33 ' 1538.00 North East [feet] [feet] 813.71 191.64 874.85 202.27 935.98 212.89 997.12 .° a 223.52 - ~~ ..: 1099.95 241.39 1119.18 244.73 1176.95 254.77 1230.46 ~ 264.07 ~~: G t 11324.13 ~ .~~~~..i,.w. 280.35 1364.05 287.29 1399.19 293.39 1429.47 i hi 298.66 ll ~ ~1 ~. 1475.11 1 306.59 1490.35 309.24 1500.48 311.00 1505.47 X311.86 1506.03 311.96 1506.03 311.96 1506.03 311.96 1506.03 311.96 Grid East c survey feet] 1346645.24 1346657.35 1346669.46 1346681.57 1346701.94 1346705.75 1346717.20 1346727.80 1346746.351 1346754.26 1346761.22 1346767.22 ~.t,..~~ 1346776.26 1346779.28 1346781.29 1346782.28 1346782.39 1346782.39 1346782.39 1346782.39 grid North survey feet] 2231181.79 2231242.65 2231303.51 2231364.37 2231466.73 2231485.88 2231543.39 2231596.65 'I ~~.~~;~ 2231689.90 2231729.64 2231764.62 2231794.76 2231840.20 2231855.37 2231865.45 2231870.41 2231870.97 2231870.97 2231870.97 2231870.97 DLS /100ftJ 0.00 0.00 0.00 0.00 0.00 3.00 3.00 3.00 3.00 3.00 3.00 3.00 3 »~ '',1 3.00 3.00 3.00 3.00 ~; 0 00 0.00 0.00 0.00 Build Rate ! Turn Rate . Planned Wellpath Report BA~CER Paxton #2 Version #4 ~~~,~'~' 1NARATHON Page 3 of 7 INTF.~ 1NARATI"IQN Planned Wellpath Report Paxton #2 Version #4 Page 4 of 7 ~~~ BAKER ~~~~~~ TNTEt,~ MD Inclination Azimuth TVD Vert Sect North East Grid East Grid North DLS Build Rate Turn Rate Meet] ~°] ~°J [feet] [feet] [feet] (feet] (us survey feet] [us survey feet] [°/100ft] [°/100ft] [°/100ft] 4500.OOt 0.000 0.000 4052.33 1538.00 1506.03 311.96 1346782.39 2231870.97 0.00 0.00 0.1 4600.00 fi 0.000 0.000 4152.33 ' 1538.00 1506.03 311.96 1346782.39 2231870.97 0.00 0.00 0.1 4700.00 0.000 0.000 4252.33' 1538.00 1506.03 311.96 1346782.39 2231870.97. 0.00' 0.00 0.1 4800.00 j- 0.000 0.000 4352.33 1538.00 1506.03 311.96 1346782.39 2231870.97 0.00. 0.00 0.1 ,. _ u 4900.00 0.000 0.000. 4452.33 1538.00 1506.03 311.96 1346782.39 2231870.97 0.00 0.00 0.( 5000.00 0.000 0.000 4552.33 1538.00 1506.03 311.96 1346782.39 2231870.97 0.00 0.00. 0.( 5100.OOt 0.000 0.000 _4_652.33 1538.00 1506.03_ 311.96 1346782.39 2231870.97 0.00 ~ ~~~~~~~~~~~~~~~ 0.00 0.( 5200.OOj~ . ~ _:~ 0.00 ~.~ ~ 00.000 II ', ' 4752.33 1538.00 1506.03 .~, " 311.96 ' ' ~ 1346782.39 2231870.97 0.00 0.00 0.( V 'll I ull~ ~~II~y ~,~y~ ~a~9J'I~V~u~~IIV~~I~I~I~~i~Rll I 1. I .~~.~~ I 1 il,u~ III ~I i ~ 3~, ~ r ,'°i l>' ~a ~. _ I ~ - , ' ~~ ~ .._ ~~ .~.,, iri N m,ss r f ~' j I I I ~ ~ I d aY~ ~. I~ " ~ _ti_ .. _ - ~ ~a~~ ~ ~I ~- M 5 ~ I ulllr' ~ ~ . ~„~, dd,, ~ k ' c ~~fi °k '41p1',~' i ' I I~°",,. ~~~~..~,ul:+Il!!iII III u_~,~ 5400.00 0.000 0.000 4952.33 1538.00 1506.03 311.96 1346782.39 2231870.97 ' 0.00 0.00 0.( 5500.00 j" 0.000 0.000 5052.33 1538.00 1506.03 311.96 1346782.39 2231870.97 0.00 0.00 0.( 5600.00~I 0.000 0.000 5152.33 1538.00 1506.03 311.96 1346782.39 2231870.97' 0.00 0.00. 0.( 5700.00' 0.000 ~ ~~~ 0.000 _~_ 5252.33 ' ~ ~ ~N II 1538.00 ~~ ~~~~, 1506.03 311.96 1346782.39 ' ~~ ~~ 223187.0.97 I + _ ~ 0.00 0.010' - 0.( i m ~ ,~ 0.000 1I I~6nllf ~ I P 5452.33 -_ _- . 1538.00 .- ,:~ 1506.03 P ~ 311.96 : ..~~r,~~ 1346782.39 I~' i. ul~u .~ar 2231870.97 0.00 _~NTM: ~~ 0.00 ~. _ _ 0.( 6000.OOj- 0.000 0.000 5552 33 1538.00 1506 03 311 96 1346782.39 2231870.97 0.00 0.00. 0.( 6048.67 0.000 9.859. ~~ ~,_~ 1538.00 ~~ ~~.~ , ~ ~ 1346782.39 2231870.97 0.00 0.00 0.( 6100.OOt 0.00 I 0 0.000 5652.33 1538.00 1506.03 ~~ II 311.96 ilk ~ f 1346782.39 I ^ 2231870.97 e 0.00 I ~ 0.001 ~ ~ 0.( 6 O.OOJ~ ~~ I E ~0~.0 0 ~z. II 0.000 5852.33 1538.00 I~ h11506.03~ 31196 ~ . r 1346782.39 223 1870.97 0.00' .-~-~~ 0.00 .~~ ;i~iiilu6~l , ~~..~,r~n 0.( 6400.00 0.000 0.000 5952.33 1538.00 1506.03 311.96 1346782.39 2231870.97 0.00 0.00 0.( 6500.00fi 0.00 0 0.000 6052.33 1538.00 1506.03 311.96 1346782.39 2231870.97 ~ 0.00 0.00' 0.( 6600.00 0.000 0.00 0 6152.33 ' 1538.00 1506.03 311.96 1346782.39 2231870.97 0.00 ~ 0.00'.. 0.( T3 Planned Wellpath Report ~pK~R Paxton #2 Version #4 ~~H MAQ/~~HaN Page 5 of 7 IN,;.,~~ .-~ Planned Wellpath Report BAKER Paxton #2 Version #4 ~~~~~~ MpQ/,~~H(jN Page 6 of 7 INTE(~ M MARATHON Planned Wellpath Report Paxton #2 Version #4 Page 7 of 7 ~A~ER H~~~#~~ ~~~'~+ Q Operator .MARATHON Oil Company Slot 'slot #2 a - - - --_ _ Area _ _ Cook Inlet, Alaska (Kenai Penninsula) :Well Paxton #2 ;Field Ninilchik Field (NAD83) Wellbore Paxton #2 MARATHON O Location: Cook Inlet, Alaska (Kenai Penninsula) MARATHON Field: Ninilchik Field (NAD83) Facilit : Paxton ii company Slot: slot #2 Well: Paxton #2 Wellbore: Paxton #2 BAKER HUGHES INTEQ Plot reference wellpath is Paxton #2 Version #4 True vertical depths are referenced to Glacier #1 (RKB) Grid System: NAD83 / TM Alaska State Plane, Zone 4 (5004), US feet Measured depths are referenced to Glacier #1 (RKB) North Reference: True north Glacier #1 (RKB) to Mean Sea Level: 171 feet Scale: True distance Mean Sea Level to Mud line (Facility - Paxton): O feet Depths are in feet Coordinates are in feet referenced [o Slot Created by: jon eth oh on 14-Nov-07 Fasting (ft) m c L 1= O Z 750 -250 -200 -150 -100 -50 0 50 100 150 200 250 300 350 c o x s ~ 700 18 00 850 i50C i'OC 600 550 1600 y~ ~ 1a9i; 500 16G0 10 3/4" Csg Surface: 1500.OOft TV D, 465.43ft N, 131.12ft E I SOG V 450 1300 400 1 flG Si10 350 1200 1300 300 ? ar,;; 1100 250 1300 120u 1000 200 )zoo r;~G soa 150 ~ 11Q0 800 1000 100 700 tOCC - 9i)0 00 50 500 800 400 slot #3 700 800 600 0 700 gp0 4o 500 - 30tJ Oslot #2 500 4 s~i1i -50 slot #1 -250 -200 -150 -100 -50 0 50 100 150 200 250 300 350 750 700 650 600 550 soo 450 400 Z 0 350 ~ 7 300 250 200 150 100 50 0 50 a'e""`"-'°°" Fasting (ft) • s MARATHON MARATHON Oil Compan Location: Cook Inlet, Alaska (Kenai Penn insula) Slot: slot #2 Field: Ninilchik Field (NAD83) Well Paxton #2 i ,-zr.Lcn~ ea i , ~xt~;1 ~~`"' w d~~ BAKER HUGHES INTEQ Plot reference wellpath is Paxton #2 Version #4 True vertical depths are referenced to Glacier #1 (RKB) Grid System: NAD83 / TM Alaska State Plane, Zone 4 (5004), US feet Measured depths are referenced to Glacier #1 (RKB) North Reference: True north Glacier #1 (RKB) to Mean Sea Level: 171 feet Scale: True distance Mean Sea Level to Mud line (Facility - Paxton): O feet Depths are in feet Coordinates are in feet referenced to Slot Created by: jonethoh on 14-Nov-07 Traveling Cylinder: Map North 300' ,y~ 240' ~ .51 \ k J ~`` .,A ..,,' ., 1~~{. l~AI 210' 180' BO' ~t i 120' MARATHON Clearance Report . Closest Approach Paxton #2 Version #4 Page 1 of 12 I~A~cER N~QN~~ IN~'~(,~ Operator M_ ARATHON Oil Company .Slot slot #2 i Area Cook Inlet, Alaska (Kenai Penninsula) ~ Well Paxton #2 (Field Ninilchik Field INAD831 Wellbore Paxton #2 ;~ Projection System ;NAD83 / TM Alaska State Plane, Zone 4 (5004), US feet Softwaze System We1lArchitectTM 1.2 North Reference True User Jonethoh Scale 0.999998 Report Generated 14-Nov-07 at 14:29:13 Wellbore last revised 04-Oct-07 .Database/Source file WA_Anchorage/Paxton #2.xm1 Slot Location __. Facility Reference Pt Field Reference Pt Local coordinates Grid coordinates Geographic coordinates North [feet] East [feet] Easting [US feet] Northing [US feet] Latitude [°] Longitude [°] -743.21 -2914.28 1346433.82 2230373.00 60 OS 43.743N 151 36 38.721W 1349365.17 2231045.67 60 OS 51.066N 151 35 41.247W ___ ~ 1371967.44 ' 2251649.81 ! 60 09 19.1O5N ± 151 28 24.639W Calculation method Minimum Curvature _~ Horizontal Reference Pt 1Slot - e Vertical Reference Pt _ _. Glacicr #1 (RKB) 'MD Reference Pt ~ Glacier #1 (RKS) - ~- - Field Vertical Reference Mcan Sea Le~~el POSITIONAL UNCERTAINTY CALCULATION SETTINGS Ellipse Confidence Limit 3.00 Std Dev Ellipse Start Depth Declination 18.78° East of TN Dip Angle lacier #1 {RKB) to Facility Vertical Datum 171.00 feet lacier #1 (RI{B) to Mean Sea Level 171.00 feet rcility Vertical Datum to Mud Line (Facility) 0.00 feet 0.00 feet 73.04° a ~~' Surface Position Uncertainty ;included `' Magnetic Field Strength '~ 55243 nT M MARATHON Clearance Report Closest Approach Paxton #2 Version #4 Page 2 of 12 ~A1CER ~~~ ~~ INTEQ ;Operator i ° { ~ ~ ~ MARATHON Oil Company 'Slot slot #2 ;Area __ Cook Inlet Alaska (Kenai Penninsula) -Well Paxton #2 Field Ninilchik Field (NAD83) Wellbore Paxton #2 =Facility Paxton ANTI-COLLISION RULE Rule Naive E-type Closest Approach w/Hole&Csg Limit:0 StdDev:3.00 w/Surface Uncert - - --- Rule Based On . -_. _~ Ellipsoid Separation' , Plane of Rule ~ Closest Approach Threshold Value 0.00 feet Subtract Casing & Hole Size yes ' Apply Cone of Safety no HOLE & CASING SECTIONS Ref Wellbore: Paxton #2 Ref Wellpath: Paxton #2 Version #4 String/Diameter Start MD [feet] End MD [feet] Interval [feet] Start TVD [feet] End TVD [feet] Start N/S [feet] Start E/W [feet] End N/S [feet] End E/W [feet] 13.Sin Open Hole 0.00'. 1630.32' 1630.3? 0.00 1500.00 0.00 0.00 465.43 131.12: ss 10.75in Casing Surface 0.00: 1630.32' 1630.3? . 0.00 1500.00' 0.00. 0.00' 465.43 131.12: 9.875in Open Hole 1630.32 ~ 3918.67 2288.35 1500.00 3471.00: 465.43 131.12 1505.82 311.93 .g _ _ 7.625in Casm Intermediate 0.00, 3918.67 y 391.8 67 0.00 3471.00 0.00 0.00 1505.82 311.93 ~~ 6.75m O en Hole p ~ 3918.67 ~ ~ 8447 67~ 4529 00 ~ _ 3471.00 8000.00 1505.82 311.93` 1506.03_ 311.96: ~ 4 Sin Casing Production 0.001 -- 8447.673 8447.67 0.00: 8000.00 0.00 0.00 1506.03- 311.96': SURVEY PROGRAM Ref Wellbore: Paxton #2 Ref Wellpath: Paxton #2 Version #4 Start MD '.. _~_ [feet] __._. .. __~ End MD __~[feet] . _ ~ Positional Uncertainty Model _ _~ Log Name/Comment Wellbore 0.00 1630.32 aviTrak Standard) axton #2 1630.32 3918.67 _~ aviTrak (Standard) axton #2 3918.67 8447.67 aviTrak (Standard) axton #2 MARATHON Clearance Report Closest Approach Paxton #2 Version #4 Page 3 of 12 BAK~~ ~~~~~+~ INTEt~i- ~. „Operator : ,. MARATHON Oil Company 'Slot :slot #2 ;Area Cook Inlet, Alaska (Kenai Penninsula) Well Paxton #2 - ._ _ Field Ninilchik Field (NAD83) 'Wellbore Paxton #2 -- - - - - Facility Paxton CALCULATION RANGE & CUTOFF ~ From: 0.00 MD ~ To: 8447.67 MD '~ C-C Cutoff: (none) ( OFFSET WELL CLEARANCE SUMMARY (2 Offset Wellpaths selected) ~..,~ ~ ,~ ,~a~„.~.~...~..v,...._ Offset ~ Offset Offset Offset Offset ~ Ref Min C-C _ Diverging Ref MD of Min C-C Facility Slot Well Wellbore Wellpath MD Clear Dist from MD Min C-C Ell Sep [feet] [feet] [feet] Ell Sep [feet] Min C-C ACR Ell Sep ~ Status r Dvrg from Paxton slot #1 ' Paxton #1 ~~ Paxton #1 MWD <110-10115> 489.08.. 26.53 8447.67 493.06 12.75 8447.67 PASS ;Paxton slot #3 Paxton #3 Paxton #3 Paxton #3 Version #2 0.00 53.26 8447.67 305.50 40.14' 8447.67 PASS MARATHQN Clearance Report Closest Approach Paxton #2 Version #4 Page 4 of 12 ~LEARANCE DATA -Offset Wellbore: Paxton #1 Offset Wellpath: MWD <110-1Oll5> ?acility: Paxton Slot: slot #1 Well: Paxton #1 Threshold Value=0.00 feet -~ =interpolated/extrapolated station BAKER E11~4E! Eli INT '~ (~ Ref MD :Ref TVD Ref North Ref East ' Offset MD Offset TVD : ~ Offset North : Offset East Horiz Bearing C-C Clear Dist Ellipse Sep ' ACR MASD ACR [feet] [feet] [feet] ~ [feet] [feet] ' [feet] [feet] [feet] [°] [feet] [feet] [feet] _: Status 0.00 0.00 0.00 0.00. 0.00 4.00 -35.42 8.48 166.54 36.64 23.30 ~~13.34 PASS 100.00- 100.00 0.00 0.00 96.02. 100.02. -35.42 8.40 166.65 36.40 23.0 0-~- - 13.40 PASS 200.OOt 200.00 0.00 0.00 196.19 200.19 -35.35 7.55 167.95 36.15 23.15 13.00 PASS 300.00 300.00 0.00 0.00 297.06 301.01 -34.13 5.27 171.23 g +~I 34.55 21.45 _ 13.10 ~ ~ PASS ~ X200. Oj~ ~- 399.97 0.83 1.78 398.49 402.24 -29.07 1.45 u~ ~ p~~~180.64 ..,..29.99 - 16.51 ~K ~ nVll~'3 4 ~ II I ~S3 487.50 487.15 3.89 8.34 486.29 489.50 -20.25 -2.41. 204.01 26.53 12.77 13.76 PASS _ 489.08 488.73 _ __ 3.97 _ 8.51 ^ 487.83 491.03 -20.07 2.47 204.56 26.53 12.76 13.77 PASS 493.06-~ ~ 492.67 , 4 4.17 8.92 491.78' ~ ,I 494.95 _, ~ -19.61 .~~ . -2.65.. ~ '°" 205.93 26.54 ' 12.75 ~ :. ~ 13.79 ~ ~ ~ ~ PA ~~ 600.OOj~ ~~ a i ~ __ ~ ~ 598.58 ° ~ ~---- 13.67 ~ ' ~~~,~ 20.05 .. ~. a ~„= h!~~ W 597.60 - + ~~ 599.92 .07 _ ,~ ..~ ... ~. ~.. ~ 7.27 .. . ~ . ' ! 232.78 .. _ ~ - _ ~_ ~ ., ~ , i 34 32' ~- . ~ 20.12 ~u ~ ~ ~ ~ ~w.~ . ~,~lul~illlll~ l~ ,~ ~~n 14 21 ~ S PASS 700.00~ ~96.69 9.72 ~.68 ~96.53 697.84 6.1 82.19. 24L22 48.92 3 4.38 14.54. PASS 800.00 793.42 52.61 41.47 794.64 794.23 23.10 -18.81 243.92 67.12 __ _ 52.2 2 14.89 PASS ~ 90 0 82 2 37 892 40 888.74 5.94 4 -28.78 245.91 88.89 73.08 15 80 PASS . °~ `$~ ~°~ F. ~ ~ . ~ ~ ~~ E ~ ~~ ~ ~ ~ _ ~ ~ ~.' ~" ~~ ~ ~ w~ ~_ y _ _ ~ - _;~ = d .~:: ~~y,~lti~+d~~. ' ~, - ~~~~`~ I ! I~ ~.~~ I I F I ~ ~~ ~ 'l?AS~ w. 1100.00 fi 1070.63 161.01 74.28 1083.15 1066.14 109.37 -57.45 248.60 141.56 123 ' .17 ~ ~~~~~~ 18.40~ PASS 1200.OOj- 1157.2 0 209.81 85.19 1176.94 1149.58 148.08 -75.77 249.02' 172.56 152.09' 20.47 PASS 1300.OOj~ 1240.15 264.56 95.99 1270.19.. 1229.76 190.95 -96.37 249.06 206.22 183.28' 22.94 PASS 1362.14 128u9~.69 - s~ 301.47 S 102.62 1328.25' Y ~ ~ II~ 1278.22 _ ~ ~ 219.84 -110.06. 1 249.00.. ~ P ~ ~ 22pp8.10 .. l ~ 203.30 `~ ~ 24.81 p PASS 1500,OOj~ ,> k W. ~ 1397.80 ot.V~.£.- 385.76 a%.~ ,,~ 117.27 -' ~3 . c.~ ^ 1455.29 . i~ ~ -. rWV. 1381.65 286.60 -141.40 ~ ~..k..~ .~ ...m~ 249.03 i li~~ I~i~~ 277.50 ~ ~ ~ 248.24'. q VI1 p~ .9v~lryll~l'iIII~INi~IVf~~.~~~~ ~y C 29.26. III r PASS 1600.00; 1476.22 446.90 127.90. 1545.02 1451.SS 337.30 -165.73 249.53 314.38. 281.60 32.78. PASS 1700.00 1554.64 508.03 138.52 1634.27 1517.43 391.51 -191.88 250.58 352.31 315.8 8 36.43 PASS 1800.00f 1633.06; 569.17 149.15. 1722.09 1577.84. 449.04 -219.27 251.94 391.42 351.25 ~ ~~~~~~ 40.17 PASS l ry w ~ w ~ ~ ~ , ;- ~~ ~.~ . ~ ~ ~ ~ ws ~ . -~ _ ~ ~. ' ~°~~ ..'~' ! ~ A.~ ~ ~u' ~ ~ ~~ ~ 5yx M ,.x ~' ~ 4. ~Al.i~~ ~ ~~ ~ g ii! ~1 I " °~ _ $_~._ iii ~~~ 14 _ ' z~. ~~~^~ z~r ~ . 1 ~.stG' ~P..~. wFA S.: ~~- 2000.00 1' 1789.90' 691.44 ~ 170.39 887.93 1 _ 1682.25 565.19 -274.92 254.17 475.22 427.5 0 47.72 PASS 2100.OOj~ 1868.32, 752.57 181.02 1973.86' 1733.8 326.96 -305.02 255.51 519.71 468.08 51.63 PASS 2200.00 1946.73 813.71 191.64 2059.42 1784.09 689.31 __ -335.13 ___256.71 565.18 509.54 _ 55.64. PASS 2300.00 2025.15: 874.85 202.27 2145.13, 1833.16 752.78r -365.3 2 257.86 611.49 ~~551.84' 59.66. PASS Clearance Report Closest Approach Paxton #2 Version #4 Page 5 of 12 ~LEARANCE DATA -Offset Wellbore: Paxton #1 Offset Wellpath: MWD <110-10115> BAKER N~~~~ INTE(~ +acility: Paxton Slot: slot #1 Well: Paxton #1 Threshold Value=0.00 feet ~- =interpolated/extrap olated station Ref MD Ref TVD Ref North R ef East Offset MD Of fset TVD Offset North Off set East Horiz Bearing C-C Clear Dist Ellipse Sep ACR MASD ACR [feet] [feet] [feet] [feet] [feet] ~ [feet] [feet] [feet] " [°] [feet] [feet] ' [feet] Status 2500.00- 2181.99 997.12 223.52 2315.89. 1927.63 881.61 -425.60 259.91 706.68 639.0 8 67.60 PASS 2600.00- 2260.41 1058.25 234.14 2404.70 1976.91 948.72 -456.52. 260.99 754.58 682.85 71.73 PASS 2668.20 2313.89. 1099.95 241.39 2463.00. 2009.21 992.81 -476.80 261.52 787.47 713.06 74.41. PASS 2700.OOj~ 2338.99 ~ 1119.18 ' ~ ~ 244.73 ~ 249L19 2024.81 1014.16 -486.59 261.83 ~ 802.85 '~ ~ 727.15 -,~ ' 75.70 ~~~, ~ r PASS ~~ 2900.00 f ~~_~ 2~503.94 ------~~ 1230.46 ~~ ~ 264.07 ~~ ~ a 2659.77. - 2118.72 1141.40 _ ~ ~~ i~!:~~' i 544.99 ~ ~ ~~ o..i .: 263.72 ~~~~ _~ 900.50 '.~ ~~~ ~_ ~~ 818.07 „y M ;ihll P ~i _ 82.44 E ~~ PASS f 0 ~~ ~~ ~~--~-~~^279.56 272.60 2735.03' 2160.59 1198.05 -571.47 264.48 950.80.. 865.76 . 85.04 _ ~PASS 31 00.00 f 2679.79 1._.__. 324.13 280.35 ^ 2804.67: 2198.81 1250.65 -596.42 265.21 1002.73'. 915.67 87.06. - PASS t 3200.00 2771.20 1364 OS .29 287 2884.21 ' 2242.34 1310 ~ -625.50 X266 64 _ ~~0~~ 9~6 u99 ~ 8~~ P 3400.00 f .295976 1429.47. 298.66 3027.75 ~ ?p 2322.28 1417.66 ry -677.79 269.31 - ~ 1166~18 + 4 ~ 1074.13.. I 4 c ~ h ~i ~l~u 92.05 'J- P 3500.00fi 3056.39. 1454.80 303.06. 3094.28. 2358.93. 1467.41 -702.45. 270.72. 1223.79, 1131.07 92.72: PASS 3600.OOt 3154.23 ; 1475.11 306.59'. 3166.98: 2398.79 .1521.91 -729.38 272.59 1283.01: 1189.63; 93.37 PASS 3700.00f 3253.01! 1490 35 309.24 3240.17 2439.53 1576 47 -756.24 274 62 1343.29 1249.52 93.77 PASS ~,» -~..,, ,.~.~ ~ ,, tl Nu', .-._,,...,m ~ - ..z r ~LY . ~ .~„",.,a~ f.~, ~~ _ r: LL ~~: ix=- ~~~ ~I 911,, r~~^^ I~~~lu .~..:~~uMi9~~~ ~ ~„^~~ 6~IIVVIn,i+~~a~d ~: uµ. .' ~; ~ x~..,.i~~.~ Ism i ~ ~~iVllu ~ u.~, ~i i ~~ ~, ~.,~.,, ~ ,__.. ~,.,,- ~ Y > ~~.. 3900.00 3452.33' 1505.47 311.86 3367.35. 2510.37 1671.32 -802.71! 278.46 1468.70 1375.83 92.87 PASS 3946.67 3499.00' 1506.03 311.96 3399.62 2528.51 1695.32 -814.39. 279.54 1498.78 1406.15 ~~92.63~ ~~ P - ASS 4000.OOj~ 3552.33 1506.03 311.96. 3433.17 2547.46 1720.25 -826.46 280.66 1533.51 1441.32 92.19 PASS 4100.00- 3652.33 1506.03 311.96 3493.54 2581.46 1765.28. -847.90 282.60 1599.76.. 1508.48: 91.28, PASS 4300.00- 3852.33' 1506.03 311.96 3628.96 2658.46 1866.16 -895.16'. 286.61: 1735.56 1645.45; 90.11 ~. PASS 4400.00# 3952.33 1506.03 311.96 3690.78 2694.02 1911.96 -916.55 288.29 1804.82 1715.43. 89.39, PASS 4500.00 4052.33. 1506.03 311.96 3732.58 2717.97 1943.03 -931.03. 289.37 1875.24. 1787.16' 88.08 _ PASS 4600.00 4152.33 1506.03 311.96 3770.92. 2739.56 1971.74 -944.39 290.34 1947.10 1860.36! 86.74 PASS 4800.00 4352.33 1506.03 ~ 311.96 ~ 3863.69 ~` 2790.84 2041.87 -976.94 ~~sSWy~Jh292 5~ iVu 111~2094~43 ~tl 2009~58{ ~x 8 4.84 PASS _ 4896.67 4449.00' _ 1506.03. 311.96 3945.86 2836.30 2104.02 -1005.62: 294.41 2166.66. 2081.54 85.12' PASS 4900.00 4452.33r _ 1506.03 311.96 3949.97 ~ 2838.61 2107.12 -1007.04 294.5 ~ 02169.14 2083.97 ~8_5.1T ~ PASS _ SOOO.OOt 4552.33 1506.03 311.96 4020.77 ~ 2878.67 2160.29 -1031.12 ~ 295.97 2243.45 2158.38 ~ 85.07 PASS ~~ Clearance Report Closest Approach Paxton #2 Version #4 Page 6 of 12 :LEARANCE DATA -Offset Wellbore: Paxton #1 Offset Wellpath: MWD <110-10115> INTEQ acility: Paxton Slot: slot #1 Well: Paxton #1 Threshold Value=0.00 feet -~ =inte rpolated/extrap olated station Ref MD Ref TVD Ref North Ref East Offset MD Offset TVD Offset North Offset East Horiz Bearing C-C Clear Dist Ellipse Sep ACR MASD ACR [feet] [feet] (feet] [feet] [feet] [feet] [feet] [feet] [°] [feet] ' [feet] [feet] ' Status 5200.00 ~ 4752.33 1506.03 311.96 4120.35 2934.80 ~~ 2235.22 -1065.02 297.90 _ 2394.00 2310.15 - 83.84 PASS 5300.00 4852.33 1506.03 311.96 4169.11 2962.04 2272.13 -1081.56 298.80 2470.22': 2386.93 83.29 PASS 5400.00- 4952.33. 1506.03 311.96 4252.47 3008.90 2334.98: -1109.88. 300.24 2546.70 2463.04 83.66' PASS 5500.00- 5052.33 1506.03. 311.96 4318.69 3046.77 2384.38 -1132.52 301.30 2623.03 2539.39 83.64 ~ ~~ PASS II 5700.00# 5252.33 1506.03 311.96 4422.87 3106.28 2462.21. -1167.94 302.87 2776.67 2693.64 _ 83.03 PASS 5800.00 _ 5352.33 1506.03 311.96 4477.41 3137.24 2503.05 -1186.62 303.64 2854.19 2771.35: 82.84 ~ PASS 5900.00 5452.33 1506.03 311.96 6367.64 4616.64 3215.40 -1884.85 307.89 2906.26 2791.66 114.60 ~ PASS 00 6000 5552.33' 1506.03 311 96 6438.68 4682.50 321 3 90 - 1911.42 3 307 5 2935 45 2820 41 ~ 115 04 PASS 1 ~ = ' , ~il^I I~9~ ~ ~ ' ti a ~ ~ I I`u~ ~ . u ~1 1 ~ 5 .K 4 ~,.~~ ~~ ~.rl~ r ~ IO II J~u~~ * 1~ ~ 4 , .1.P~. 61 00 0Oj~ 5652.33'. 1506.03 31 96 6532.58 4769.62 3212.82 -1946.43 307 08 2 8 1 5 6200.00 5752.33 .1506.03 311.96. 7370.99 5585.10 3215.24 -2117.25 305.13 2974.97 2854.7 8 120.19- PASS 6300.001' 5852.3 3506.03 311.96. 7514.88' 5728.74 3215.27.: -2125.89 305.04 2979.92. 2859.57.. 120.35 PASS 6400..001' (~(~ 5952.33 p~ 1506 03 ~ ~ 311.96 ~I I .7613.05 t ~_ 5826.77 ` , 3215 O1 ~ 2131 09 7 ' ~ , 304.97 ,2984 11 Il ~ A 286„ ,,,, 3.54 IM 120.57 l ~ ~ PASS ~ A ""`~ ~on..5 6600.OO 1' ~11111V I,u tl11.1~~~~ . 6152.33 ~~ $ .f-_ " ~ux~..~,..-- -<~ 1506.03 I VIII 111111 CJ I ~~ I i:.. IIuilu IIIMiII ~°a... _ 311.96 ..rr A. ~~du'4,r2.' f .r -.~~ 7840.89: __- - - _ _ -s.~ 6054.37 'YI I~,, St'~~~1 ~~ ~ 3215 13 ~ x~.~~. ~iv'E .. .. , ^'~J..._~ My2141.39 - _. --- , -- i, ~ ~..~ 304.8 6 IN ~,. . i, l ~'c^s~',...o,;.illli ~ 1 2991.58 ~i~~ I P ~I, ..,.n..,llll III ... ....,~ __ 2870.67 I:Il il 1~~- .s z II III I~ I I~I'~_.r ~ 120.91. , ., - ~ n,. PASS t 6700.00 ~ 6252.33, 1506.03 311.96 7949.27. 6162.66 3215 07 2145.62 304.82 2994.76 2873.67 121.09 PASS 6800.00 6352.33' 1506.03. 311.96 8072.17.. 6285.50 3215.31 -2149.43 304.78 2997.42 2876.21 121.21 PASS 6900.00, 6452.33 1506. 0 3 311.96 8178.95 6392.25 3215.76 -2151.82 30 4 .76 2999. 5 1 2878.15= 121.36 PASS .~ ~, ~'~~pp, ' i I kr4 : ~ ~ y ( S ~ ~ ++ }~ ~~ ~~ ~~ ~' ~ l ~1~ hN f f 1 ,N, ~Ya I . -~..... i uM ~: ~.. .. d ~~ ud ~ ~ '. _ ~ - ' ~: - Fw T~. . S~ :~ _ e . .. ~ z u y~~ ..,.~ ~..~1u~c~.~..~ ~ .r . ..... J i I .. :vi'~Yi ...., u I 7100.00- 6652.33. 1506.03. 311.96 8382.49 6595.75 3217.59 -2156.17 304.74 3004.05 2882.40 121.66 PASS 7200.OOt 6752.33: 1506.03 311.96 8510.43'. 6723.66 3218.58 -2157.79 304.74 3005.54 2883.84 121.70 PASS 7300.001- 6852.33' 1506.03 311.96 8677.33 6890.55 3219.41 -2157.02 304.76: 3005.50 2883.98' 121.51 PASS 7400.00- 6952.33 1506.03 311.96 8811.00. 7024.19 ,.. 3219.56 ... -2153.74. 304.80 3003.50 2882.10 121.40 PASS ~ G1~~! ~1~1 ~ ~~ i ~~ .. 1 I~Ipu ~ ~ ~' ' .-- s~~," m~Y~ r~~~ ~ ~'~N ~ ~~1~~.5 r~YP ? , ~ ~. ~~~ : ivS~~ ~ . - ~= „~r~L7~~ -~. u~~ i I,~n~r~~~lil~ . 7600.00~ : ~ 7152.33. ., . , ~..._ - 1506.03 .. 311.96 . 9060.52 . . ..., . 7273.46 _ . ~ . ___ 3220.96 -2142.96 ~ 304.94 . 2997.05 2875.90 ~21~15' _PAS_S_ 7700.OOj~ .7252.3 3 1506.03 311.96. 9157.71 7370.49 3222.00 -2137.51 305.01 2993.07 2871.8 9 121.17 PASS 7800.00 7352.33 1506.03 311.96 9267.09'... 7479.68 3223.48 -2131.13 305.11 2989.07 2867.97 12L11 PASS 7900.OOt 7452.33 1506.03 311.96 9384.03 7596.36 3225.01 -2123.42 305.22 2984.41 2863.43 120.98 PASS MARATHQN Clearance Report Closest Approach Paxton #2 Version #4 Page 7 of 12 $~ .~ BA~CER f H ~~N ~.'~ INTEQ String/Diameter Start MD [feet] End MD [feet] Interval [feet] Start TVD [feet] End TVD [feet] Start N/S [feet] Start E/W [feet] End N/S [feet] End E/W [feet] 20in Conductor ~ 0.00 100.00 100.00 4.00 104.00 -21.59. 5.17 -21.59' 5.14 9.625in Casing Surface 0.00 1895.00 1895.00' 4.00'' 1686.53 -21.59' 5.17 163.01. -81.97' Tin Casing Intermediate ~.._._~_.. _____..._ 0.00! 4950.00 ...__~ 4950.00' ._. 4.00 . 3421.68: -21.59 5.17 856.48 -407.3 _ ~ ~L,ii~cr ~~. 47i?3.O~i 10071..,~ ~ 5~{8.6~ ~ __ ,, c ~ ~~~r ~v .. --.. , 8L8~.43 .._.._...._w__ ~~9G.~~" -____. _v~$L.~ ~ ~ [..~_ 973 3G ~. _-.~.~___ . _ .. -62S.C7 _, . ___~_ .. w .w, , ~.~,.. ~ ,. ..~.,.- WELLPATH COMPOSITION Offset Wellbore: Paxton #1 Offset Wellpath: MWD <110-10115> Start MD [feet] End MD _ _ jfeet] ~ Positional Uncertainty Model Log Name/Comment Wellbore 0.00 ~ 10115.00 NaviTrak (Magcorrl) MWD <110-10115> ~ Paxton #1 ~ ~~~~~ ~~ _ ~ __ _~ y e r.~ ~ . ~__~_ _ _ _~~~R ;HOLE & CASING SECTIONS Offset Wellbore: Paxton #1 Offset Wellpath: MWD <110-10115> M MARATHON Clearance Report Closest Approach Paxton #2 Version #4 Page 8 of 12 ~AKLR ~~Q~E~ INTE(~ Operator 1l1ARATHON Oil Company Slot slot #2 __ __ _ _ `.Area Cook Inlet, Alaska (Kenai Penninsula) -Well Paxton #2 Field Ninilchik Field (NAD83) I Wellbore Paxton #2 Paxton OFFSET WELLPATH MD REFERENCE- Offset Wellbore: Paxton #1~ Offset Wellpath: MWD <ll0-10115> MD Reference: Nabors #129 (RKB) Offset TVD & local coordinates use Reference Wellpath settings (See WELLPATHDATUMon page 1 of this report) MARATHON Clearance Report Closest Approach Paxton #2 Version #4 Page 9 of 12 ~LEARANCE DATA -Offset Wellbore: Paxton #3 Offset Wellnath: Paxton #3 Version #2 BAKER N~~'~E~ INTEQ +acility: Paxton Slot: slot #3 Well: Paxton #3 Threshold Value=0.00 feet j- =interp olated/extrap olated station Ref MD Ref TVD : Ref North Ref East `Offset MD O ., ffset TVD Offset North Offset East Horiz Bearing C-C Clear Dist Ellipse Sep ACR MASD ~._~ ACR [feet] [feet] [feet] [feet] [feet] [feet] [feet] [ feet] [°] [feet] [feet] [feet] Status 0.00 0.00 0.0 00.00 0.0 0 _ 0.00 40.93: -34.08 320.22 53.26 40.25 13.01 PASS 100.00j~ 100.00 0.00 0.00 100.00 100.00 40.93' -34.08 320.22 53.26 40.25 13.01 PASS 200.00 200.00 0.00 0.00 200.00. 200.00 40.93 -34.08 320.22 53.26 40.21 13.05. PASS 300.00 300.00' 0.00 0.00 y,. ~ ' 300.00 300.00 ' 40.93 -34.08 - ~ 320.22 , ' 53.26 . 40.15 13.11. ' PASS '' 325.00 325.00 0.00 ~~, 0.00 ~G~ 324.56. - ~~~~ 324.56 ~~ ~uGr~m ~ 41.13 ~. ~, -34.00 _ ~~ 320.42 u~r~~i. 53.36 ~~'~ ~ 40.21. .I ll - r~ ~. 13.15 , ~~5~ PASS 400.00 f 399.97 0.83 1.78 398.16. 398.08 44.06 -32.84 321.31 55.42 42.07 13.35 PASS 487.50 487.15 3.89 8.34 483.71 483.20 51.87 -29.75 321.55 61.40 47.6 5 13.75 PASS 500 0 ~ ~ ~ ~ ~ : , ~~~. ~~~~~~ - ~ ~ uBhl'd i ul~~~V~~ ~ ~... ~~. ~ ~ ~ ~~ F~ ~ ~'.,~ ~ ~ . ~ ~ ~ ~~~;'u ~ I ~`~ ~_ 7 ~~ ; ~ i. ~.w~ ~ ~ ~ ~, ~. ~..'~ 1 .=w.,' 700.00- 696.69 1 29.72 ~ 30.68 690.46 7 685.64 90.12: -14.64 323.12 - 6.32 60.53! 15.79 j ~P-A~SS- 800.00~ ~93.42 52.61 _ 41.47 787.3 778.02 117.30 -3.90 324.96 ~~80.51 ~~ 63 30 ~ 17.20 P ASS 900.00', 888.29 82.2 2 52.37. 883.93, 867.89 150.10' 9.06 327.46 83.07 64.29 18.78 PASS 1000.00 980.8 4 118.41 63.32 980.10 954.83 188.29 24.14 330.72 84 23 63 72 ~-20.51 PASS h ~,~ w-_- _. r ~: r __ s ~;;~ ,~ ~~~ ,~ m a ~,~ ~~ ~ G, ,~ ~ ii ~a ._ ~ ..o I,u;li,a,ll .~~,i i~ii ~ i 9' ~ ~i1 ~~~ii ~~ ,: ,~ 1,~ _ 4 _ ~ -- ~u~~ m r'M~4 ru~~ ,I Ili ~ i ICI . ~: e~.., r f~_ . ~-- - u.~ ,, ,, _ ~ u ,r "' -k i ~ ~ ~ '~ ~~ _ ~.. i ~ i 1 _ - ~- ~ __-- E~ ;. ~1;, ~ ~ ~ :t ~. ~~ ~ ~~ ~~~ :.,. il~; ~w,uu,~ 1200.OOj~ 1157.20 209.81 85.19 1171.00 1118.31 279.73 60 27 340.39 83.80. 60.18'. 23.621 PASS 1300.00 1240.15 264.56 95.99 1265.65 1194.15 332.36.: 81.07 347.59 83.28 58.59 24.69'. PASS 1362.14: 1289.69' 301.47 102.62 1324.17 1239.11- 367.20 94.83 353.24 83.30 58.12 25.18 PASS 1400.00 ~'1 1319.38: II '~ ~r 324.62 d 106.65 r ° 1359.70 . : 1265.64 389.17. ~ ~ __~ 103.51 z 357.22 ' ' ' 84.05 ~ _ u 58.88 ~ 25.16 i ~~ ~ PASS ~ F,_. 1600.00 I _ i :w l4~ I u Ili 1476.22' 46.90 .~ 127.90. . , ~.. 1544.06 ... 1393.45 12.58 d~ 152.27 i, i I ~ ~ ~ h~l ~~ ~,~IV~~ 20.36 ~.~ - 'il .' 108~~44 ~ ~ till~~ ~ ~.. ~ 83.58: ~~ .M~~.U~ p~~.i ~~~ ..r3 24.86 ~. PASS 1700.OOj~_ 1554.64': 508.03 138.52 1632.96 1448.73 577.31. 177.85 29.58 132.52 107.30- 25.22, PASS 1800.00~ ~1633.06 569.17 149.15 1718.90. .._. 1497.97 642.81 203.72 36.54 163.25 137.46 ~~~-~~~W 25.79' PASS I lI1190010~ .,a .1711 48 x u I '~ 159.77 _ 1812.29 1549100 715.55 ' ..232 46 N ` k 40 46 IW `_ 19 7.36 170.31 ,ul 1 _ --~~~- 27 OS ~ ~,y y i ' ' PASS ~ ' u 2100.00 .1.868.32 ~ 752.57 g 181.02 ~ 1999.76 1651.43 861 ~58 290.16. ~ 4 = ~ .15' V ' li~l ..~ ~ 235.96 I ~~.~ ~ ~P.~ 1 _.__~ ~~ ~ ~u 30.18 _S ; ~~...~. w ._~, PASS 2200.00 1946.73 813.71. 191.64 2093.50- ~~ 1702.64 934.59 319.01 46.50 300.69: 268.7 4 31.95 PASS 2300.00 f 2025.15 874.85 202.27 2187.24 1753.86 1007.61 347.86 47.64 _~_ 335.30. 301.4 9 3 3.81: PASS 2400.00 2103.57. 935.98 212.89 2280.97, 1805.07 1080.63 376.7 1 48.56 369.94 334.20 _ ~~35.75 PASS MARATHON Start MD 1 End MD Clearance Report Closest Approach Paxton #2 Version #4 Page 12 of 12 Offset Wellpath: Paxton #3 V Positional Uncertainty Model ~~ sA1~E N~~~~ INTEQ Log Name/Comment ~ Wellbore { O.OOI 9935.80~laviTrak (Standard) I (Paxton #3 _~, b_ _~ ~_r ._~.~ _ .~...~~ ..___~..,~__.,.arv,,,~..~d, _.~.~ ,._~_, ,.~ ~-~.. .~.~.,. _~ ,... _~_..~...Aa~~ <.,,.~_ _, '.OFFSET WELLPATH MD REFERENCE -Offset Wellbore: Paxton #3 Offset Wellpath. Paxton #3 Version #2 MD Reference: Glacier #1 (RKB) Offset TVD & local coordinates use Reference Wellpath settings (See WELLPATH DATUM on page 1 of this report) • • _~~ Marathon Oil Company r :;III IFE Well Name: Paxton #2 Location: Kenai, Alaska. INTEGRATED FLUIDS ENGINEERING PROJECT PLAN Prepared For: MARATHON OIL COMPANY Well Paxton #2 Prepared by: Jim Dwyer Reviewed by: Hal Martens Presented to: Will Tank November 19, 2007 ~~ Kenai Peninsula, Alaska ~~'~ Marathon Oil Company Well Name: Paxton #2 _ Location: Kenai, Alaska. Will: Enclosed is the recommended drilling fluid program for the Paxton # 2 well to be drilled this year. The following is a brief synopsis of the program. Overview: Paxton #2 is an exploration well targeting Tyonek formations in the Ninilchik area. A Gel/Gelex spud mud is recommended for the surface interval. Flo-Pro fluid will be used for the intermediate and production intervals. After logging the production interval, the well will be completed with 4 1/2"liner cemented in place. Surface Interval: A standard fresh water GeUGelex spud mud will be used. Initial funnel viscosity should be in the 50 - 75 sec/qt range. Lower funnel viscosity to 45 - 60 sec/qt after gravel has been drilled. Lower fluid loss to < 10 cc's API prior to running surface casing. Potential fluid losses to the formation may be controlled by additions of G-Seal and/or sized calcium carbonate. G-Seal can also reduce torque in the build area of the surface hole. Intermediate Interval: This interval will be drilled with aFlo-Pro fluid. After drilling out the surface cement, the well will be displaced to a standard Flo-Pro KCl fluid. Safecarb bridging material will be maintained according to the mud program to minimize losses to the formation. Expected clays encountered will require the use of the centrifuge van as well as dilution to minimize solids buildup in the mud. Production Interval: This interval will be drilled with Flo-Pro fluid. After drilling out the intermediate cement and 20 - 25 feet of new hole, the well will be displaced to a new Flo-Pro KCl fluid. Fluid loss should be maintained @ < 6 cc's API for this interval. Potential coal sloughing may require the addition of Asphasol Supreme. Completion: This program assumes the well will be completed with 6% KCl brine. Jim Dwyer Senior Project Engineer 1V1-I Drilling Fluids Reference Wells: Susan Dionne #3, Paxton #1 NOTE: This program is provided as a wide only. Well conditions will always dictate fluid properties required. ~~ • ~~ Y _~~. ; '~~ Marathon Oil Company Well Name: Paxton #2 Location: Kenai, Alaska. EXECUTIVE SUMMARY Our overall goal is no M-I/Swaco HSE incidents while providing fluids and solids control services to our customer. Our goal fQr Paxton #2 is to remove drill solids from the mud system at a cast of less than 50.2 per pound. Our goal fQr Paxton ~ is to drill the well at a fluid cost of less than ~ 2h.8S per foot with a total volume of fluid used less than 4800 barrels. l.Tse of the 1VII-SW~CO centrifuge van for the last fve dears has provided an estimated savings in dilution and. disposal costs to Marathon Oil of over $t,2~0~000. '~ with continued usage of our equipment we expect to provide more savings to you. __ during future. operations. In addition, the installation of Mdngouse shapers has allowed the utilisation of finer mesh screens on intermediate and production intervals. Running finer mesh screens has reduced the need for the centrifuge van. '" ~'~ Marathon Oil Company Well Name: Paxton #2 _ Location: Kenai, Alaska. Interval Benchmarks and Targets Drilling _Intervals __ Depth Benchmark 1 Benchmark 2 _ Benchmark 3 Benchmark 4 Interval (ft) Fluid cost per foot Volume Usage Solids Removal 0 - 1630' > $9.17 ft < 1683 bbls 1630 - 3919' > $53.52 ft < 2194 bbls 3919 - 8448' > $20.74 ft < 3100 bbls Total Project Avg. Max. Targets for < $26.85 < 6977 bbls < $0.32 lb o Spills from Centrifug Drilling Van Operation Interval ~~ • n~ Project Summary • Marathon Oil Company Well Name: Paxton #2 Location: Kenai, Alaska. Casing Hole Size Size (in} (in) 10.75" 13.5" 7.625" 19.875" 4.5" 16.75" Casing Program 4.5" (6.75" ~ Completion ~ 8.55 3 Interval Mud Cost $14,139 $111,836 $96,144 $5,432 - Utilize all solids control equipment to minimize the buildup of drill solids in the system (if possible, centrifuge the surface mud during trips to reduce drill solids). - Condition the mud prior to running casing for all intervals. - Cost does not include engineering and any downhole mud losses. - Cost includes 3% Lubetex concentration for intermediate and production interval. Depth (ft) TVD (ft) Mud System Solids Control Mud Weight (ppg) Sum Days 1630' 1500' Gel/Gelex Spud 8.6 - 9.2 5 Mud Screens 150/180 mesh Desilter Centrifuge Van 3919' 3471' Flo-Pro 9.2 - 9.4 7 w/SafeCarb Screens 180 - 210 mesh Desilter Centrifuge Van 8448' 8000' Flo-Pro 9.4 - 9.6 7 w/SafeCarb Screens 230 - 210 mesh Desilter Centrifuge Van 8448' 8000' 6% KCl ~~ r~77 , ~~ Marathon Oil Company - Well Name: Paxton #2 _ Location: Kenai, Alaska. Product Usage Summary ~.7 Y L 3 ~ ~` "t ~ ~ , i M-I Bar Surface ~ 13.5" Ix~~e~°~cdiate X3.75" 77 ~ Production ~ 6.75" ( 192 ~("~~ ~~~~~. S"~',. 9 ;: ~ ~ Y . x. 269 .92 M-I Gel 492 492 2.08 Gelex 27 27 .14 Soda Ash 15 8 23 .23 Caustic Soda 21 15 13 49 .91 Con or 404 3 4 7 3.83 Sodium Metabisulfite 43 31 26 99 2.82 Bicarb 21 8 13 42 .32 Con or 303 5 5 1.04 F1oVis 123 102 225 20.43 Desco CF 21 21 .43 DualFlo 154 154 5.64 Polypac UL 22 62 84 5.64 As hasol Su reme 62 51 123 4.14 Greencide 25G 17 2 19 1.24 KCl 646 537 210 1388 11.14 Safecarb 615 512 1127 9.81 Lubetex 35 32 67 21.44 Defoam X 14 14 28 1.22 HIa and 16 16 6.59 En ineerin 5 7 7 3 22 ~~ Marathon Oil Company '~ Well Name: Paxton #2 _ Location: Kenai, Alaska. Offset Well Information Susan Dionne #3 Well Hole Size Depth PPG PV YP FL Comments SD #3 12.25 1370 9.15 16 30 14 Spud in, drlg ahead 1972 9.15 11 14 14.8 Drlg to TD, circ run casing 8.5 3100 9.3 9 21 8 Drlg ahead run cent van to reduce clays 4190 9.55 11 30 7.4 Short trip OK, clays increasing 4756 9.5 10 24 7.2 Short trip tight, dump and dilute to reduce solids 5245 9.5 15 34 6.6 Add lubetex to aid in sliding, centrifuge to reduce solids 6.125 5693 9.4 9 21 7.6 Drlg out, drill ahead, to core point 6310 9.4 11 28 7.9 Finish coring & logging, drlg ahead 6879 9.5 12 27 6.5 Drlg ahead 7745 9.55 13 29 5.9 Log hole, drlg ahead 8445 9.6 14 30 6.2 Drlg ahead, trip for washout 8827 9.8 14 24 7.4 Drlg ahead, inc mud wgt POH for core 8887 9.8 13 22 7.4 POH w/core MBT increasing, dump & dilute solids 9357 9.8 15 27 7.2 Drlg ahead 9785 9.8 13 23 5.9 Drlg ahead 10254 9.8 12 22 6 Drlg to TD, POH, log on DP, hit ledge, wireline log, condition hole run liner 10254 9.7 10 14 7.2 Briefly stuch at 7805, lowet mud weight, run to TD, cement liner Paxton # 1 Well Hole Size Depth PPG PV YP FL Comments Paxton 1 12.25 790 9.0+ 17 28 11.6 Drlg to 790 with trouble cleaning hole 1905 9.5 18 12 7.6 Drlg to TD, pump hivis sweeps to clean gravel, reduce vis prior to cmtng 8.5 2934 9.3 14 25 6 Drlg ahead; no problems 4959 9.45 14 30 5.9 Dril to 4959; short trip to shoe; run solids van 4959 9.5 14 28 6.1 Log hole, no problems, R/U to run casing; cement and bumped plug 7 5310 9.2+ 11 27 6.6 Drlg out, drill ahead, LOT 13.7 EMW 7006 9.3 14 30 3.5 Drill and slide without problems 8440 9.3 16 33 4.2 Drlg ahead with no problems 9513 9.35 16 25 4 CBU; POH; Test BOPs; RIH with new BHA 10115 9.45 16 28 4.8 Drlg to TD; CBU and POH w/o problems 10115 9.5 18 27 4.3 Finish logging; Run 4.5" liner with no problems 1~ ~~ Plans & Procedures Marathon Oil Company Well Name: Paxton #2 Location: Kenai, Alaska. ~ COMMUNICATION -The Field Mud Engineer will communicate daily with the Project Engineer. The Project Engineer will then communicate daily with the rig Drilling Engineer. Communications should be about, but not limited to, fluid properties, hole difficulties, possible changes to the mud program, and proposals to use products not included in the mud program. ~ Whole Mud Losses to the Sterling A8 Sands -Refer to fluid formulas and the Optibridge charts for maintaining proper bridging material concentration in the mud system while drilling the intermediate and production intervals. ~ FLUID LOSS CONTROL - In the intermediate interval the API fluid loss will be maintained in the 7 - 9 cc's range. In the production interval the API fluid will be maintained at less than 6 cc's at all times. In addition to sufficient fluid loss agent additions, this may require adequate dilution of the mud system in order to keep reactive drill solids to a minimum . It is particularly important to maintain a low hardness (<200 ppm Ca) for effective use of DualFlo, therefore cement contamination should be completely treated as rapidly as possible prior to adding DualFlo to control or reduce fluid loss. NOTE: If additions of DualFlo do not appear to be lowering the fluid loss adequately, then switch to additions of Polypac Supreme SL after consultation with town. ~ LSRV -When drilling with a F1oPro fluid, the low shear rate rheology should be maintained around 40,000 cps. In addition to adequate additions of FloVis Plus, this will also require keeping reactive drill solids to a minimum in order to reduce or eliminate false and unwanted high LSRV. ~ DRILL SOLIDS -MBT -The MBT should be kept at less than 5 ppb in the production interval through aggressive use of solids equipment and dilution as needed. ~ MIXING CONDITIONS -Whenever possible all treatments to the mud system should be made as pre-mix additions. Polymers and KCl should first be mixed in fresh water in that order and then blended into the active system over one or two circulations as needed. ~ CORROSION - Congor 404 additions should be made daily when drilling with F1oPro fluid in order to maintain a Congor 404 concentration of +/- 2000 PPM. ~ CORRISION - SafeScav NA additions should be made daily as needed with any fluid in the hole. Maintain a DO reading of less than 3 ppm ~ GREENCIDE 25G ADDITIONS - Greencide 25G additions should be made daily when drilling in the production interval, in the range of 5 gallons per day. ~ SOLIDS VAN USAGE -The Solids Van should be used whenever drill solids become un-acceptably high and reduction of drill solids in the mud can be more economically done with centrifuging and dilution then just with dumping and diluting. The weight of the drilling fluid alone should not be the determining condition for when to use the Solids Van. ~ WEIGHTING UP -All increases in mud weight should be accomplished with barite additions. In the production interval, insure chloride concentration is maintained at 30,000 to minimize the need for barite additions. ~~ ~~'~ Marathon Oil Company =a ~ Well Name: Paxton #2 ~ Location: Kenai, Alaska. Interval Summary -13.5" hole 0 - 1630' Drilling Fluid System GeUGelex Spud Mud Key Products MI Gel / Gelex /Soda Ash /Caustic Soda / MI Bar / PolyPac Supreme UL Solids Control . Shale Shakers / Desilter /Centrifuge Van Recommended shaker screens - 150 - 180 mesh Potential Problems Lost circulation, coal sloughing, drill solids build-up, gas kick, tight hole conditions Interval Drilling Fluid Properties Depth Mud Funnel Yield API Drill. Interval Weight Viscosity Point Fluid Loss pH Solids (ft) (ppg) (sec.lgt) (Ib.Il00ft~) (ml/30min) (%) 0 - 1630' 8.6 - 9.4 60 - 100 25 - 35 NC - 12 +/- 9.5 < 7% - Treat drill water with Soda Ash to reduce hardness. - Build spud mud with 20 - 25 PPB M-I Gel to +/- 100 sec.gt funnel viscosity. - Lower funnel viscosity to +/- 75 after gravel zone has been drilled. - Add Gelex as needed to maintain sufficient viscosity for hole cleaning. - Increase funnel viscosity if fill on connections begins to occur. - Reduce fluid loss with additions of Polypac Supreme UL prior to running surface casing. - Add 2 - 5 PPB of M-I Seal Fine to mud system if seepage losses becomes a problem.. - Condition mud prior to cementing casing to reduce yield point and gel strengths. - Estimated volume usage for interval - 1507 barrels. - Estimated haul off volume - 2215 barrels. 1~ << 1~ Marathon Oil Company Well Name: Paxton #2 Location: Kena>, Alaska. Virtual Hydraulics 13 1/2" Hole Cle M~ SWAC[] ©1995-2006 Ml L.L.C. MD: 1630 ft Operator: Marathon =; '""°""~~"'"~,°","'° ~Ma'" °~ M_~ r.~.a ND: 150Q ft ~I Well Name: Paxton2 VIRTUAL HYDRAULICS"VRDH' ~ ~ Bft~a~: ,;,SV~ `" ~'~ ~~ oare'pe<;~a - ROP401N1r - ROP90ft~hr F: - ROP1401N1r - ROP 190 fth,, ''z ". 0.75 X C _C .= 0.50 cC d N O 025 -~------ FairHoleCe ' "~_mmw..ud Good Hole Cleaning "'°,~-~.,..,,,, 1~ ~ ~- - IFE Marathon Oil Company Well Name: Paxton #2 Location: Kenai, Alaska. Interval summary - 9 7/8" hole 1630 - 3919' Drilling Fluid System Flo-Pro Fluid Key Products Flo-Vis / PolyPac UL / KCl / SafeCarb F & M /Asphasol Supreme Lubetex / K1aGard / Caustic Soda / Conqor 404 / SafeScav NA Solids Control Shale Shakers / Desilter /Centrifuge Van Recommended shaker screens - 210 mesh Potential Problems Lost circulation, coal sloughing, drill solids build-up, gas kick, tight hole conditions Interval Drilling Fluid Properties Depth Mud Plastic LSRV API Drill. Interval Weight Viscosity 1 min Fluid Loss pH Solids eft) tppg) ~cp•) ~cPs) ~m1J30min) (°/a) 1630 - 3919' 9.2- 9.4 8 - 12 40,000 8 - 10 +/- 9.5 +/- 7.5 - Use one rig pit to drill out surface casing. In other rig pits, build new Flo-Pro fluid using the enclosed formula. - After drilling out surface casing, displace hole to Flo-Pro fluid prior to running leak off test. - Maintain DO reading of less than 3 ppm with additions of Sodium Metabisulfite. - Maintain Conqor 404 concentration of 2000+ ppm. - If running coals become a problem, increase Asphasol Supreme additions. - Estimated volume usage for interval - 1497 barrels. - Estimated haul off volume - 1663 barrels. - Condition mud prior to running 7 5/8" casing. NOTE: Follow BOSCO guidelines when adding biocide, oxygen scavenger and corrosion inhibitor. ~~ ~ ~ ~0 Marathon Oil Company Well Name: Paxton #2 Location: Kenai, Alaska. Virtual Hydraulics 9 7/8" Hole Cleaning - ROP55Pohr - ROP85Nhr - ROP115ftmr - ROP145ftfir 075 - ROP175ftfir K .a C "' ~ '' C . :~, = 0.50 ..,.„._~~""`_ _N U as O 2 025 -.~..._ ~_ __ _. . I ';~ 600 620 640 660 1~ ~~ • ~'~ Marathon Oil Company ~~_ Well Name: Paxton #2 _ Location: Kenai, Alaska. Intermediate Interval Fluid Formula 9.875" Interval from 1630 - 3919' Descri tion Mud Wei ht Wei ht Material Code Wei ht Material SG Paxton # 2 9.2 - 9.4 MI WATE 4.1 Input Preh drated Gel Preh drated Gel Conc. KCI Wt% Output - 1 bbl No 6 Order of Products Concentration Volume Product Addition Field, Ib Lab, m Field, bbl Lab, ml Usa e 1 Water 298.70 298.70 0.853 298.70 2 Soda Ash 0.25 0.25 0.000 0.10 Reduce Hardness 3 Flovis 2.00 2.00 0.004 1.33 Viscosit 4 Pol ac Su reme UL 2.00 2.00 0.004 1.25 Fluid Loss Control 5 Caustic Soda 0.50 0.50 0.001 0.23 H Control 6 Potassium Chloride 19.07 19.07 0.023 7.98 Inhibition 7 KlaGard 6.00 6.00 0.018 6.25 Inhibition 8 SafeCarb F 10.00 10.00 0.010 3.60 Brid in A ent 9 SafeCarb M 10.00 10.00 0.010 3.60 Brid in A ent 10 As hasol Su reme 2.00 2.00 0.006 2.08 Wellbore Stabilit If for ue becomes a roblem, or slidin i s difficult, add u to 5% of the followin 12 Lubetex 14.00 14.00 0.041 14.43 Lubricit Total 399 399 1.000 350 Calculated Mud Weight 9.400 Estimated Volume Usa a 1502 Barrels Total Chloride 29600 ~_ I L ~'~ Marathon Oil Company Well Name: Paxton #2 _ Location: Kenai, Alaska. Interval Summary - 6.75" hole 391.9 - 8448' . Drilling Fluid System Flo-Pro Fluid Key Products. Flo-Vis / DualFlo / KCl / Greencide 25G / SafeCarb F / K1aGard / MI WATE / Caustic Soda / Conqor 404 / SafeScav NA Solids Control Shale Shakers / Desilter /Centrifuge Van Recommended shaker screens - 210 - 230 mesh Potential Problems Lost circulation, coal sloughing, drill solids build-up, gas kick, tight hole conditions Interval Drilling Fluid Properties Depth Mud Plastic LSRV API Drill Interval Weight Viscosity 1 min Fluid Loss pH Solids (ft} (ppg) (cp.) (cps) (m1130min) (°lo) 3919 - 8448' 9.4 - 9.6 10 - 14 40,000 < 6 +/- 9.5 +/- 5% - Use one rig pit for drilling out intermediate casing. In other rig pits, build new Flo-Pro fluid using the enclosed formula. - If running coals become a problem, treat with a 2 PPB addition of Asphasol Supreme. - Periodic additions of Greencide 25G will be needed to control bacteria build-up. - Estimated volume usage for interval - 1306 barrels. - Estimated haul off volume - 2247 barrels. - Condition mud prior to running 3-1/2" casing. NOTE: Follow BOSCO guidelines when adding biocide, oxygen scavenger and corrosion inhibitor. ~~ r~ 7 7Ti • Marathon Oil Company - Well Name: Paxton #2 ~`~'~~ Location: Kenai, Alaska. Virtual Hydraulics 6 3/4" Hole Cleaning 111/i~ ~YYI"'-VC~. ©19952006 Ma L.L.C. MD: 8448 ft Operator: Marathon ~'"'.~'~~ 'M"koim-i~.~.c ND: 8000 ft WeIlName: PaMon2 V~BTOA~ ~~~~~~~~~~~~~* Bit Size: 675 in lnca6an: KenaiPerrnstia Date: 11i19I2(107 ~ Couitry: Alaska Hole Cleaning Marathon Paxton 2 1.00 ~- ROP25f6hr.c ~ ~ ~ ~ ~~; - R,. ?~,- - ROP125ft/hr Poor Hole Cleaning 0.75 x as = Fair H ole Cleaning C .~ 0.50 _... N V _ -- F- ~_... _ ~ .._.M~._~ ,_ ~ Good Hole Cleaning O 2 025 0 400 ~~ ~~` 420 440 460 480 500 520 540 560 580 600 Flow Rate (aal/min) Marathon Oil Company `~'~ Well Name: Paxton #2 Location: Kenai, Alaska. Production Interval Fluid Formula 6.75" Interval from 3919 - 8448' Descri tion Mud Wei ht Wei ht Material Code Wei ht Material SG Wei ht Material Price Paxton # 2 9.2 - 9.6 MI WATE 4.1 Input Preh drated Gel Preh drated Gel Conc. KCI Chloride KCI Wt% Output - 1 bbl No 6 Order of Products Concentration Volume Product Addition Field, Ib Lab, m Field, bbl Lab, ml Usa e 1 Water 325.19 325.19 0.929 325.19 2 Soda Ash 0.25 0.25 0.000 0.10 Reduce Hardness 3 FloVis Plus 1.25 1.25 0.003 0.84 Viscosit 4 DualFlo 6.00 6.00 0.011 4.00 Fluid Loss Control 5 SafeCarb Fine 14.00 14.00 0.015 5.30 Brid in A ent 6 SafeCarb Medium 6.00 6.00 0.006 2.30 Brid in A ent 7 Potassium Chloride 20.76 20.76 0.025 8.68 Inhibition 8 Greencide 25G 0.25 0.25 0.001 0.30 Biocide 9 CONQOR 404 2.00 2.00 0.004 1.43 Corrosion Control 10 Caustic Soda 0.50 0.50 0.001 0.23 H Control 11 Sodium Metabisulfite 0.25 0.25 0.001 0.25 Ox en Scaven er If slidin or hi h for ue becomes a roblem add 1 - 3% of the followin 12 Lubetex 7.00 7.00 0.021 7.00 Lubricit If sloughing coals become a roblem add 2 - 4 b of the followin 13 As hasol Su reme 2.00 2.00 0.004 1.33 Wellbore Stabilit Mix fluid in the order listed above. Maintain 5 - 6 ppb concentration of DualFlo to maintain as low a API fluid lo ss as possible. Plan on dail y additions of Dua lFlo to achieve > 6.0 cc's API Fluid Loss Reduce concentration of FloVis as needed to maintain rheolo .Total 380.1 380.1 Estimated Volume Usa a 1391 Barrels Calculated Mud Wei Total Chloride ht 9.5 29600 1~ • i ~~ Marathon Oil Company ~~ Well Name: Paxton #2 Location: Kenai, Alaska. HIE Issues HANDLING OF DRILLING FLUID PRODUCTS HEALTH AND SAFETY 1. Drilling crews should be instructed in the proper procedures for handling fluid products. 2. Personal Protective Equipment (PPE) charts should be posted in the pit room, the mud lab, and the office of the Drilling Forman. 3. PPE must be in good working order and be utilized as recommended by the PPE charts. 4. Product additions should be made with the intent to use complete unit amounts of products (sacks, drums, cans) as much as possible in order to minimize inventory of partial units. 5. Insure all MSDS sheets are up to date and readily available for workers to access for information. ~~ • Marathon Oil Company Well Name: Paxton #2 1~ Location: Kenai, Alaska. ENVIRONMENTAL 1. Insure that all product stored outside is protected from the weather. 2. Do not store partial units (sacks, etc) outside if possible. 3. Properly secure all products for shipment between job sites. 4. When transferring fluid and or cuttings from the rig to trucks, insure all hoses are properly secured. 5. When utilizing the centrifuge solids van, insure all hoses and connections between the van and the rig are secure. ~- Marathon Oil Company Well Name: Paxton #2 ~' 1 E _ Location: Kenai, Alaska. Product Health and Safety Reference HMIS HAZARD RATINGS Product Function Health - Flammability Reactie~ify ~ PPE F M-I BAR Weighting Agent *1 0 i, ',i~d ~~I~~~, ° ~ ! '~~~'~. ~. ~~iN~p~,p~a~,r~'~ E M-I GEL Viscosity control *1 1 ~~~ ~V'u, ~''~~'' {~TM~i~ ~ ~ ~1IIIII~II; E GELEX Bentonite Extender 1 ry ~ t~~ .~_~: 1 ~~,`°,5n~,,,"~~'~ ~ ~~'~ E FLOVIS Viscosifier 1 1 "~~~"~i~d'~''°~'I~'~~~ ~'~~" E DUAL-FLO Modified Starch 1 1 ~~~,'~ill~;ihi~iG'~~~'~Ph!~p~~~~~q'~'~hi~,"~d~~1169"~~ul`i ~i~~y~,~a'~ ~1~~ I V.~~~l~'~ _ E POLYPAC Fluid Loss Reducer *1 1 =;~~~~, '',~F~ " ~~ .nM~ ~~ 3 Y E XCD Viscosifier 1 1 ~ ='~~+9+~I" ~ "~'~~ r ~~y~, , n3w~ it ,wV~ E HEC Loss Circulation Material 1 1 ~ ~ ~~ MI ~I E Safe-Garb F,M,C Bridging and weighting agent *1 0 ~ ~. ~ -.9, E LO WATE Weighting agent *1 0 ~~~ E Nut Plug Loss Circulation Material *1 1 ~~ t a lT~~f ~ i E M-I Seal F, M, C Loss circulation Material *1 1 ~~~~ ~ r, E Mix II F,M,C Loss circulation Material *1 1 -~~' "~ ~~;,, E DESCO CF Dispersant 1 1 = ~~ ~ ~~ u.: E SPERSENE CF Dispersant 1 _ 1 r~-~ E TANNATHIN Dispersant 1 1 E VENTROL 401 Surfactant 1 1 E SALT (Solar) Densifier 1 0 _ z~ E BROMIDE (Naar) 8~ Brine Solution Densifier 1 0 ~_- 0 ~-gi n,. #~~ F POTASSIUM CHLORIDE - Shale Inhibitor 1 0 0 ' ~ E ~~ ~' ~~~'~ Marathon Oil Company -_ Well Name: Paxton #2 Location: Kenai, Alaska. Product Health and Safety Reference HMIS HAZARD RATINGS Product Function Health - Flammability Reactivity ~. PPE CAUSTIC SODA Ikalinity control 3 0 ''~'''~~~~°~I~~'!~~~~''"~ ''~~'~'~'~~"'~~~~'~'~'irl';°';.:~ X „ d~~~~~m~''`i~~C~1 ~~~~~ CAUSTIC POTASH pH Modifier 3 0 ,~~'~~~~~"''~I ~~i~~'!IN~~~~ ~ X ~ ~, . BORAX Inorganic Borate 1 0 0 ' ~ E SAPP Sodium Pyrophosphate *1 0 0 ~ E SODA ASH Ikalinity control 1 1 (} ,~~,~ E SODIUM Ikalinity control 1 0 ~~ ~~ ~~ ~ ~ ' E BICARBONATE ~~i~°o ,' ~g~ re ~ Iuti , CITRIC ACID pH Adjuster 1 ~~, 0 ~ ~~~s,ir',1 ~_ E BIOBAN BP-PLUS Biocide *2 0 =~ 'a' ~~ J ~~ ~, ~ :,~ GREEN CIDE 25G - Biocide 3 0 ~, J ~~ ~ ~,s: DEFOAM X - Defoamer 1 1 ~ ~~~i,~ } J G-SEAL Sized graphite LCM 1 1 ti~~i'°~u~~I'I~~~,~~ ~ E ~, , .~~.: KLA-GARD Shale Control agent 0 1 - - 'fix J LUBE TEX Lubricant 1 1 ~ ' ~ ; ~~~ J ,~ , G~ D-D CWT Detergent 2 1 ~ J p m .'III,. ~ ~k. Concor 404 Corrosion Inhibitor 1 1 ~f~ ~. J SAFEKLEEN Drilling fluid additive 1 1 -- J sphasol D Shale Inhibitor 1 1 e p - lu J Soltex Shale Inhibitor 1 1 J SafeScav NA Ox en Scaven er Yg g 1 1 ~Y,, u " _ r~ J ~~ Alaska Department of Natural Resources Land Administration System Page 1 of 3.. • See Township, Range, Section and Acreage? New search ,~ C~`, Yes ~" No ._._ __~ _..__ __ LAS Mans I Case Abstract I Case f~?tail ~ Land Abstract file: _1DL 381372 ~ Sea~ct~ for Status Plat Updates ;~~ of I„(1-1%~'UO~' Customer: 000159642 MARATHON OIL COMPANY ATTN: CONTRACT DEPARTMF,NT P.O. BOX 68 FIOUSTON TX 7700] 0068 Case Tyhe: 7 OIL & GAS LEASE COMP DNR Unit: 780 OIL AND GAS File Location: DOG DIV OIL AND GAS Ouse Status: 35 ISSUED Statt~+s Date: 12/06/1994 Total Acres: 3507.840 Date Initiated: 10/19/1993 Office ofPrimcrrv Responsibility: DOG DIV OIL AND GAS Last Transaction Date: 10/07/2005 Case SuhryEe: ~l COOK INLE"h Last Trar~rsaction: CCN CUSTOMER CHANGED NAME 111cridian: S Totivn.chiP: 001 S Range: 0I4W .ti'c wion: O1 Section ~?eres: 650 S~~~rt~ flats 1~IC'TZG~Zatl.~ ~ ~Ult'111~11j>: OOI~ R~lll,rc.' ~)I-~~~ ~C'c'/inn' 02 Seetron<~C/Y'S: 650 1~IC'Y1d7Cln: ~ ~i~i171S~11~~.~ (1OI~ ~~ilfl~'c'.~ ~)]-~~~' S'eChOil: 11 .~PCt70n~~c"Y'~?S: 640 ~Ier1dICUl.' ~ ~[~11~i1,~'jll~~: QO ~ ~ Riln~,c'.' ~) I -~~1' JectlOn. 12 S(',Ctt017 ~1~'i'L'S: 57I Meridian. S 7~uu,~~~hi~~: (~O I ~ R~~f~~,c.~ U I-1~1' Section: 13 SECttOn Acres: 38? ~Ief•idian~ S 7~rnin~/tip: 001 S Idange: 014W Section: 14 Sectionllcres: (i I Legal llescription 10-I J-1993 '~ *S_ALE 11'OTICE LEGAL DESC'RIPTION' TR,4C'T 7~-072. T 1 S., R. 1-i Ti'., SEl3~4RD 1LLERIDL~N, ALASKA SECTION 1. PROTR.-1C'TED, ALL, 650 ACRES, SECTION ?. PROTRACTED. AL.L, 6~ 0 ACRES': SECTION 11, PROTRACTED, ALL, 6~t0 ACRES; http://www.dnr.state. ak.us/las/Case_Summary.cfm?FileType=ADL&FileNumber=3 84372... 12/4/2007 Alaska Department of Natural Resources Land Administration System Page 2 of'~. SECTION 12, SURVEYED, FRACTIONAL, SEI/=1SEl/~, ~0 ACRES: SECTION 12, UNSURVEYED, ALL TIDE A.ND SUBMERGED LANDS, 530.78 ACRES; SECTION 13, SURVEYED, FRACTIONAL, EI/2, 320 ACRES; SECTION 13, UNSURVEYED, ALL TIDE AND SUBMERGED LANDS, 61.74 ACRES, SECTION 1.1, UNSURVEYED, ALL TIDE AND SUBMERGED LANDS, 615.28 ACRES. THIS TRACT CONTAINS 3, ~ 07.8 ACRES MORE OR LESS. 10-31-2001 * * *ENTIRE LEASE COMMITTED TO T HE NINILCHIK UNIT T. 1 S., R. 1-1 W., SEtiVARD MERIDIAN, ALASh'A SECTION 1, PROTRACTED, ALL, 650 ACRES; SECTION 2, PROTRACTED, ALL, 650 ACRES; SECTION 11, PROTRACTED, ALL, 6~0 ACRES; SECTION 12, SURVEYED, FRACTIONAL, SEI/SEI/~1, ~0 ACRES: SECTION 1?, UNSUR KEYED, ALL TIDE AND SUBMERGED LANDS, 530J8 ACRES, SECTION 13, SURVEYED, FRACTIONAL, EI/2, 320 ACRES; .SECMON 13, UNSURVEYED, <~LL TIDE AND SUBMERGED LANDS, 61.78 ACRES; SECTION 1 ~, UNSUR UEYED, ALL TIDE AND SUBMERGED L_9NDS, 615.28 ACRES. THIS' TRACT CONTAINS 3.507.8-1 ACRES MORE OR LESS' 0''(Il/2003 *************=`**P.~IRTIC'IPATI.NGAREA EST=~BLISHED *********** LEASE INCORPORAI ED LV PART INTO THE SU.SANNE DIONNE P.=1 RTICIP_ATING AREA NINILCfIIh UNIT 'TRACT 8 (PARTT~IL) DIO;V~~'G P,-1 l: 1 S'., R. 1-1 Tt"., S'F.[t-1RD:t1F.RIDI.~N, ALASKA SEC'T1O~1' 1. PROTRACTED, .~'F„„'-1NE;=I, SE;2~VE =l.:SE -1, ;VE;!-IS[t~%~. S''S[.[;~, -102. ~ ,ACRES: S'EC'ZIO1~' 12. PROTRACTED, ,V/?-VE,-1, ~'~1'/-1.VG[i"~1 120ACRG~S; CONI:MINING 522.5- ACRES. MORE OR LESS. http://www.dnr. state.ak.us/las/Case_Summary.cfm?FileType=ADL&FileNumber=3 84372... 12/4/2007 ~-'~ Marathon Oil Company y Well Name: Paxton #2 _ Location: Kenai, Alaska. Product Health and Safety Reference HMIS HAZARD RATINGS HAZARDOUS MATERIALS IDENTIFICATION SYSTEM (HMIS) HAZARD RATINGS 4 -Severe hazard 3 -Serious hazard 2 -Moderate hazard 1 -Slight hazard 0 -Minimal hazard * An asterisk next to the health rating indicates that a chronic hazard is associated with the material. HMIS PERSONAL PROTECTIVE EQUIPMENT INDEX A -Safety Glasses B -Safety Glasses, Gloves C -Safety Glasses, Gloves, Synthetic Apron D -Face Shield, Gloves, Synthetic Apron E -Safety Glasses, Gloves, Dust Respirator F -Safety Glasses, Gloves, Synthetic Apron, Dust Respirator G -Safety Glasses, Gloves, Vapor Respirator H -Splash Goggles, Gloves, Synthetic Apron, Vapor Respirator I -Safety Glasses, Gloves, Dust and Vapor Respirator J -Splash Goggles, Gloves, Synthetic Apron, Dust and Vapor Respirator K -Air Line Hood or Mask, Gloves, Full Suit, Boots X -Consult your supervisor for special handling directions ~~ ~ ~ ~'~ Marathon Oil Company Well Name: Paxton #2 _ Location: Kenai, Alaska. Contacts Contact Title a-mail Work Cellular Pete Berga Drilling pkberga@marathonoil.com 907 565-3032 907 231-0663 Marathon Superintendent Will Tank Drilling Engineer wjtank@marathonoil.com 713 296-3273 713 203-8398 Marathon Jim Dwyer Project Engineer jdwyer@miswaco.com 907 274-5011 907 317-4556 MI SWACO Bob Myles Warehouse Manager rmyles@miswaco.com 907 776-8680 907 252-4218 MI SWACO Oliver Amend Field Engineer Miswacogdrl@hotmail.com 907 260-4666 907 590-3636 MI SWACO (home) Jim Brown Field Engineer sullibrown@gci.net 907 398-8500 MI SWACO John Nicholson /Dan Drilling Foremen alaska_drilling@marathonoil.com 907 283-1312 Byrd Marathon Responsibilities - MI Project Engineer and will coordinate daily between the Marathon office, rig, warehouse, and the M-I field engineers. - Well progress will be monitored to look for any changes, which will improve the efficiency of the operation or avoid offset well problems. - Field $ngineers will monitor and supervise product inventory to include re-palletizing any products for shipment to other locations at the end of the well. - Field Engineers will communicate with office personnel (Marathon & MI SWACO) for approval of any changes in the mud program (including introduction of new products). - Field Engineers will produce a recap at the end of the well based on daily activities. Recap should include any lessons learned that may be used to provide better service on future wells. Lessons learned can include changes in procedures, product additions, equipment usage, and/or utilization of any third party service. U CHECKLIST -SPACING EXCEPTION APPLICATION API NUMBER 50133205730000 PROPERTY ID/LEASE ADL0384372 OPERATOR MARATHON OIL CO FIELD/POOL NINILCHIK, PAX TYONEK UNDF GAS WELL NAME. NINILCHIK UNIT PAXTON 2 VERTICAL DEVIATED EXPLORATORY GAS DEVELOPMENT OIL SURFACE LOCATION 746 FNL and 2914 FEL in T1 S R14W M S PRODUCTION INTERVALS NO LOCATION (Top and Bottom) NO LOCATION BOTTOM HOLE NO LOCATION Check applicable reason(s) for spacing exception per 20 AAC 25.055(a): NA Spacing Exception requested to (1) to drill a well for oil within 500 feet of a property line where ownership or landownership changes NA Spacing Exception requested to (2) to drill a well for gas within 1500 feet of a property line where ownership or landownership changes NA Spacing Exception requested to (3) to drill and complete more than one oil well in a govemmental quarter section; or NA Spacing Exception requested to (3) to drill and complete an oil well closer than 1000' to any well drilling to or capable of producing from the same pool NA Spacing Exception requested to (4) to drill and complete more than one gas well in a governmental section; or Yes Spacing Exception requested to (4) onto drill and complete a gas well closer than 3000' to any well drilling to or capable of producing from the same pool. Yes Does the application contain a brief explanation for why the operator has chosen to drill the specified location. Yes Does the application contain a plat drawn to a scale of one inch equaling 2,640 feet or larger, showing the location of the well or portion of the well for which the exception is sought, all other completed and drilling wells on the property, and all adjoining properties and wells within 1,000 feet of a well or portion of the well requiring the spacing exception that is drilling for oil or within 3,000 feet of a well or portion of the well requiring the spacing exception that is drilling for gas. Yes Does the application contain the names of all owners, landowners, and operators of all properties within 1,000 feet of a well or portion of the well requiring the spacing exception that is drilling for oil or within 3,000 feet of a well or portion of the well requiring the spacing exception that is drilling for gas. Yes Does the application contain acopy of the notice sent by certified mail to the owners, landowners and operators described above, the date of mailing, and the addresses to which the notice was sent. Yes Does the application contain an affidavit by a person acquainted with the facts verifying that all facts are true and that the plat correctly portrays pertinent and required data. NA If the operator requests a variance from the notice requirements of 20AAC25.055(d), does the application contain sufficient information to demonstrate that it is not feasible to comply with the notice requirements because of the complexity of ownership within the notice area. TRANSMITTAL LETTER CHECKLIST WELL NAME ~/'S~XToiV- o? PTD~ ~a~~~~ / Development Service Exploratory Stratigraphic Test Non-Conventional Well Circle Appropriate Letter /Paragraphs to be Included in Transmittal Letter CHECK ADD-ONS TEXT FOR APPROVAL LETTER WHAT (OPTIONS) APPLIES MULTI LATERAL The permit is for a new wetlbore 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(f), all records, data aad logs acquired for the pilot hole must be clearly differentiated in both well name ( PH) and API number (SO- =) from records, data and logs acquired for well SPACING The permit is approved subject to full compliance with 20 AAC EXCEPTION 25.055. Approval to perforate and produce /inject is contingent upon issuance of a conservation order approving a spacing exception.. ~~~ the liability of any protest to the spacing exception that may occw. 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. Please note the following special condition of this permit: Non-Conventional production or production testing of coal bed methane is not allowed Well for (name of well) until after (Comply Name/ has designed and implemented a water well testing program to provide baseline data on water quality and quantity. lCampanv Name) must contact the Commission to obtain advance approval of such water well testing ro am. Rev: 7/13/2007 WELL PEFi1~IT CHECKLIST Field & Pool NINILCHIK, PAX TYONEK UNDF GAS -562550 Well Name: NINILCHIK UNIT PAXTON 2 Program DEV Well bore seg ^ PTD#:2071640 Company MARATHON OIL CO Initial Classll-ype DEV 1 PEND GeoArea 820 Unh 51432 On10ff Shore ~rt Annular Disposal ^ Administration 1 Pemlikfoe a#taChad- - - - - - - - - - - - - - - - - - ~A- - - - - - - - - - - - - - - - - - - - - - - - 2 [.ease numberapproRriate- - - - - - - - - - - - - - - - - - - - - - - -Yes - -------- ---- - --------------------- -- - ------------ - - - - 3 Uniqubwell_rtameandnumbet -------- - - - - --- - - Yes --- ---- - -- - - --- -- - - - -_ - - --- -- 4 Wfllllscatedina_definedPo01_______________________________ ______ Na__ __--_Undefined_Ty4nek,Proposed-$us$rtDi9nne/Paxt4nP.A,_________-__--__-__-___-_____ 5 -4yeil Iacated proper distance from drilling unitbopndary_ _ _ - - - _ _ _ _ _ _ _ _ _ _ _ _ _ _Yes _ - _ _ - - _ _ - _ _ _ . _ - ----------------------------------------------------------- 6 _WfllUacated proper d[stance ftom other walla- - - - - - - - - - - - - - - - - - - ~0 - - - - - - - - - - - - - - - - - - 7 Su9ictentacreetibayeilablsin_driiungunit----- - ----- Yes - - -- - --- -- -- ------- --- -- - - - ---- -- -- -------- - 8 if.deviated,is_weliba-eRletinctuded - - - - - - - - - - - - - - - - - - - - - Yes - - - - - - - - - - - - - - - - - - 9 Operator onlyaffes~sdRarfy - - ----- - --- - -- ---- -- --KO - - - - - - --- -- -_ - -- ------ - 10 Ope[atorhes_apRraprlatabondU_farce__-_--------------------. _.----Yes- ------Blanketf3ond#5194234----------------.------------------------------_-__-- 11 Pennitaanb8issuedwlthputConsarvatiorlGrder--- ------------------ -------h!°-- ----------------------------------------------------------------....---- Appr Date 12 PeCmitcanbelssuedwlthoutadminiattativs_ap1N'oval------------------- ------Yes- --...---------------------.-------------------.-.----------------------- ACS 121412007 13 Canpennltb4apRrovedbefare153lay.waif------------------------ ------Yes- ------------------------------------------------------------------------ 14 WaIUQCatedw(thinarSa6nd_strataautharixgdbY-Inj4Gti9nOtder#(ps~tlQ#Jn-comments).(For_ NA-- --------------.------------------------------------------------------- 15 Ahwalls_wlthU1(4_mile_atea_ofteyiewidentltied(Far-sen!iceweh only)-__-____ ----- htA_ .____________________-__-________-__-_________-__--_____--__--__--__-- 18 PIe•producedinjector;duration-ofprg-ptoduationlesa than3months(Forservlcewellanly)_._NA_ -____..__.-__ ..............______.._.-._---_---.__._.__-__--___-____ 17 -Konconven,gae_caniormstaAS31,45t03Q(G1.A),Q•2.A•C)- -- -- -- --- _~'. -- -- -- -- ---- - -- ------------- --- - - ---- -- ------- - Englneedng 18 Conduciotstling-pravJded-- -- -- -- - - --- -- - - ---_ Yes. -- -- - -- -- - --- -- - --- -- - - - --- -------- 19 Sutface_caain4RroteataaliknownUSDWS_---- ----------- ------Yes- -------------------------------------------------------------------------- 20 CMT_val+tdequate_ta9lroul_aie_on_conduatat&surf-csg------------------ ------Yes- ----------------------.---------.------.-------------.---------------- 21 CMTvaiadequa#e_totie•lnlangetrJngtoairrfceg - - - -- -- - - - -K0 -- -- -- ---- - -- ------- ----- - ---- - -- -- - ------- 22 CMT.vnllcover~liknown.produatlvehar~ona--- - - --- --- --- -Yes ------- -- --- - -- ------- -- --- ---- -- -- --- - --------- 23 Casing designs adequatefotC,?13&_petroaftost -- -- - - - Yes- ---- --- -- ----- -- ------ --------- -- ----- ----- ------- 24 Adequate tankage-ar te94rVe ph _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _Yes - _ _ _ _ _ _ Rig is_equipped with steel_pjts. _ No resente_pitplanned, All waste to-approved disposal well(s). _ _ _ _ _ _ _ _ _ _ _ _ 25 If_a_re-dl'ill,has_at0.403farabandonmenkt~eenaRRraved---------------- ------ NA-- -------------------------------------.---------------.----------.----- 28 Adequate-v~ellkore eeparakonpropaaed_ - _ _ - _ - . _ _ _ - - _ - - _ _ Yes _ _ 2nd well on pad. Traveling cylinder path calculated, Paxton 1150' distant onsurface_ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ 27 if-diverterra4ulmd,daeo ttmeetregulaticns- - - -- - - - -- Yes- - ----- -- -- -- -- -- ---------------------- -- -- -- - --- - -- Appr Date 28 DrtBing tluldRroQram sahematlc & equip list adequate_ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ Yes - _ _ _ _ _ -Maximum expected fonnatlon pressure 9,2_EMW,_ Planned_MW 9.4.9.6-ppg._ - _ - . _ _ . - - . _ - - _ - - .. _ . TEM 12!412007 29 BOPJrs,-dotheymeetregulatfan- -- - ---- -- - - Yes- - -------- --- --- ------ --- -- -- ---- -- -- -- --- -- -- -------- j~ (~Mi /~ ' ~ " X30 BOPE_ptass [sting apptoptiat¢; teat to_(put psig In commQnts)_ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _Yes - _ _ - _ - - MA$P calculated at 2Q69 psiwNh 3Q~o mull 70°%gas._ WI 1Q0°/a gas MA$P_= 3027 psi. 2500 psi.60P_test planrl /y ,'~'' ~ ~ 31 Choke_roanifoldcampiieswlAPI_RP-±;3(May!''4)______________________ ______Yes_ - - ____-___--_ 32 -Warkwiliaoautwiihcutoperation_ahutdown------------------------- ------Yes- ---------------------.----------------------.------------------- 33 IaRreaenceofH2SgasRrobable------------------------------ ------No__ -,__H2Shasnatbeenteportedin theNinilchikUnit.-------_----------------------------- 34 MechanlcaLcanditianofwallavdthinAORyerified(F9rservicewellonlya-------- -------KP,- ------------------------------.------------------------------------------- Geology 35 Pe[mitaanbeiasusdwlahydtogertaultidemeasutea-- ---------- ---- ------Yea- -----------.------------------------- 36 Data-pJeaeotedart patantisl9+terpreasurezonea--------------------- -------NA_ --.----------------.-------------------------------.--. ------------------ Appr Date 37 Setsmicanalysisafshallawgaezonea________________--__--___- _---__-htA_ _____-.------------_-------_---_-_-_--__._-- ACS 1214!2007 36 Beaked-ccnditionsurYfly.(i[aff-shote)--------------------------- ------ NA-- -- 39 ContaCtnamelphonefortveekly_grogrestepor#s_(exploraiaryonlyj_--------- ------Yes- ------WNIardTank•-713.295-3273------------------------------------------------- Gealogic Engineering Commissioner: Date Daie: Commissioner: C mis ' r Date O1S IZSsJ~ ~' wiz-~-~7 ~a.s o~ ~J CJ • Well History File APPENDIX Information of detailed nature that is not particularly germane to the Well Permitting Process but is part of the history file. To improve the readability of the Well History file and to simplify minding 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. PAXTON 2 SEC 13 T1S R14W SM January 18, 2008 -February 2, 2008 Craig Silva: Senior Logging Geologist Ralph Winkelman: Senior Logging Geologist E~ EPOCH • PAXTON 2 SEC 13 T1S R14W SM January 18, 2008 -February 2, 2008 Craig Silva: Senior Logging Geologist Ralph Winkelman: Senior Logging Geologist EPOCH M MARATHON OIL COMPANY PAXTON 2 • TABLE OF CONTENTS 1 MUDLOGGING EQUIPMENT AND CREW ................................. ............................................................. .....2 1.1. EQUIPMENT SUMMARY ........................................... .................................................2 1.2. PERSONNEL .............................................................. ................................................. 2 2. GENERAL WELL DETAILS ......................................................... ............................................................. .....3 2.1. OBJECTIVES .............................................................. ................................................. 3 2.2. WELL RESUME ......................................................... ................................................. 3 2.3. HOLE DATA ............................................................... .................................................3 3. GEOLOGICAL DATA .................................................................... ............................................................. .....4 3.1. LITHOLOGY REVIEW ................................................ .................................................4 3.2. SAMPLING PROGRAM AND DISTRIBUTION ............ ............................................... 14 4. DRILLING DATA ........................................................................... ............................................................. ...15 4.1. DAILY ACTIVITY SUMMARY .................................... ............................................... 15 4.2. SURVEY RECORD .................................................... ............................................... 24 4.3. MUD RECORD ........................................................... ...............................................29 4.4. BIT RECORD ............................................................. ...............................................31 4.5. DRILLING PROGRESS CHART ............................... ............................................... 32 DAILY REPORTS APPENDIX I FORMATION LOGS APPENDIX II DRILLING DYNAMICS LOGS APPENDIX III • ~~ EPOCH 1 M MARATHON OIL COMPANY PAXTON 2 1 MUDLOGGING EQUIPMENT AND CREW 1.1. EQUIPMENT SUMMARY • Parameter Equipment Type And Position Total Downtime Comments Low gas readings are a persistent concern due to the immediate pre-shearing Standard Air Drive Trap Mounted In of return mud, that falls 14" Ditch Gas Possum Bell ; FID Total H drocarbon Y Y O straight down through an air gap as it exits the flowline Analyzer And Chromatograph and impacts the fluid of a tiny possum belly in a wide splash, before reaching the as trap. Rate of Penetration (ROP) Primary Drawworks Shaft Encoder On 0 Drum Shaft Pump stroke counters Externally Mounted Magnetic Proximity 0 Sensor Hookload /Weight on bit (WOB) Hydraulic Pressure Cell 0 Drill string torque Hydraulic Pressure Cell 0 Top drive rotary (RPM) Externally Mounted Magnetic Proximity 0 Sensor Standpipe Pressure Hydraulic Pressure Cell 0 Mud flow in /out (MFI / MFO) MFI Derived From SPM / MFO From 0 Flow Paddle Pit volumes Ball and probe sensor 0 Driller's work station Explosion Proof Touch Screen 0 Casing Pressure Hydraulic Pressure Cell 0 Company man's work station HP COMPAQ 0 Mud Engineer's work station HP COMPAQ 0 Living quarter's work station HP COMPAQ 0 Pit's work station Explosion Proof Touch Screen 0 1.2. PERSONNEL • Unit Number: ML006 PAXTON 2 s D s D s D Mudloggers Years at Sample Catchers/ at Technician at Experience well Trainees well well Craig Silva 31 30 Joshua Dubowski 10 Steve Forrest 1 Ralph Winkelman 19 28 Theresa Downey 5 Dean Kekaulua 6 Ramon Mejia-Vidal 6 ~~ EPOCH 2 ~M MARATHON OIL COMPANY PAXTON 2 . 2. GENERAL WELL DETAILS 2.1. OBJECTIVES The objective of PAXTON 2 is to successfully drill and log a Single Zone Development well in the Ninichik Unit (Tyonek Pool), with a minimum of hole problems or other concerns. A standard completion will be performed. 2.2. WELL RESUME Operator: MARATHON OIL COMPANY Well Name: PAXTON 2 Field: Ninilchik Unit (Tyonek Pool) County: Kenai Peninsula Borough State: Alaska Company Representatives: Dan Byrd Mitch Burns John Nicholson Location: 482' FSL, 1121' FWL, Sec 6 T4N R11W SM, X=272,047.598, Y=2,362,530.423 Classification: Single Zone Development Gas API #: 50 - 133 - 20573 - 00 - 00 Permit #: 207 - 1640 Activity Code: (WBS #s) DD.07.16241.CAP.DRL Rig Name /Type: Glacier #1 /Land /Double Elevation: Ground, RKB 149.80.0'GL, 171.44' RT Primary Targets: /Target Depths: Tyonek: 3921', (3472' TVD) Tyonek: 4592', (4143' TVD) ary Targets: /Target Depths Tyonek: 7900', (7449' TVD) Tyonek: 8010', (7559' TVD) Spud Date: January 18, 2008 Total Depth 8436 Total Depth Formation: Tyonek Total Depth Date: February 2, 2008 MWD Company: /Tools Run: Baker Hughes Inteq /Directional MWD Directional Drilling: Baker Hughes Inteq Drilling Fluids Company: M-I Drilling Fluids Logging Companies: Weatherford Wireline Services: Intermediate Quad-Combo on wireline. Production Quad-Combo on shuttle and MFT on wireline. 2.3. HOLE DATA PAXTON 2 Hole Maximum Depth T D Mud Deviation Shoe Depth F.I.T. Section MD SSTVD Formation Weight (°inc) Casing MD SSTVD EMW 16" 225' 53.56' Sterling 8.6 0.00 n/a n/a n/a n/a 13'/2" 1630' 1326.14' Beluga 9.6 36.91 10'/" 1616' 1315.54' 15.0 9'/8" 3919' 3298.40' Tyonek 9.5 0.14 7 5/8" 3902' 3281.78' 15.0 6'/4" 8436' 7813.26' T onek y 9.3 1.84 4'/2 Liner 8385' 7762.29' Standard Completion ~~ EPOCH 3 '"M MARATHON OIL COMPANY PAXTON 2 3. GEOLOGICAL DATA 3.1. LITHOLOGY REVIEW Sand/Sandstone/Tuffaceous Sandstone (1630'-2200') =note tuffaceous clay matrix supported sandstone is very easily observed and abundant; usually the clay matrix goes into solution and only trace blebs of expansive watery sandstone are discernible; also a clay supporting is inferred when there are pervasive loose disaggregated grains; medium light gray with faint light brownish gray secondary hues; local very faint light olive gray secondary hue in "cleaner-looking" sands; dominant fine upper to medium lower and moderately sorted; evident fining upward in many sand intervals; note total size range from very fine lower to granule; loose disaggregated grains are also abundant, and generally increase with depth; rare to locally spotty grain supported sandstone with weak calcite and/or silica cementation; angular to subangular, discoidal to subdiscoidal; trace to spotty rounded grains; less common than sandstone with tuff clay matrix support are local sandstones with complex inter-grain support that include volcanic ash, devitrified volcanic ash, calcite and silica mineralization (in both crystalline and powdery forms) and various clay-silt mixtures. Sand/Sandstone/Tuffaceous Sandstone (1630'-2200') =some tuffaceous sandstone supported by air fall volcanic ash that consists almost entirely of reworked shards; ashy and non-ashy lithic arenite to compositional graywacke (>30% lithics); estimate 60-80% quartz and volcanic glass, trace feldspar, 10- 15% chalcedony, chert and other minor forms of cryptosilica; 15-35% lithics and mafic minerals; 75-90% of all lithics are medium gray to medium dark gray medium grade meta slightly schistose phyllite rock fragments that often have display slight to moderate weathering; 5-15% of lithics are associated dark gray to grayish black medium grade meta argillite rock fragments; remaining 5-15% of lithics are from diverse sources, but slightly dominated by light green to grayish green to variegated green low grade meta greenstone rock fragments; other lithics include various meta- intrusive, spotty meta-quartzite, and various sedimentary rock fragments; sedimentary rock fragments include clastic coal, calcareous tuff and several types of silica replaced volcanics; 80% of the quartz is colorless to very pale gray to very pale brown and translucent, 20% of the quartz and nearly all of the volcanic glass is colorless and transparent; most mafic minerals not identified, but augite, biotite, chlorite and a "bronze" colored mica, possibly phlogopite are easily discerned. Tuffaceous Claystone (1630'-2200') =dominant light grayish brown, but many subtle medium gray and brown colors and secondary hues; note increased lightness values as Claystone becomes "ashier"; very dominant fraction of pervasive volcanic ash derived mudstones that include tuffaceous Claystone, tuffaceous siltstone, tuffaceous shale, less disturbed and reworked shard abundant volcanic ash, several forms of devitrified ash (bentonite-smectite group clays) and calcareous tuff or other calcite-silica replaced variations tuffaceous Claystone is dominantly soft to slightly brittle, generally amorphous and massive, and lacking shape or structure when hydrated; some claystones are moderately brittle and fragile to resistant brittle and tough; these latter Claystone are often slightly shaly and have blocky to tabular shape and cuttings habit; clayey. to ashy to silty to various soft matte and mixed textures; some devitrified ash can have smooth texture, and some ash with abundant mega-shards can appear gritty; lustres are generally earthy, but when there is a bias to the orientation of shards the ashier clays can appear microsparkly; many examples of micro-thin interbedding of the ashy mudstone types; local zones with abundant thin interlaminated-interbedded coal and carbonaceous shale. Sand/Tuffaceous Sandstone (2200'-2320') =light to medium gray with light grayish green secondary hues overall, individual grains dominantly clear to translucent and frosted quartz and volcanic glass, light to medium gray and scattered dark gray to black, trace light greenish gray and translucent yellow; very fine upper to rare very coarse upper, dominantly fine lower to medium lower; angular to subangular with rare subrounded coarse pebbles; very well sorted in fine to medium range, poorly sorted in coarse; dominantly disaggregated with common light gray clay acting as a supporting matrix; trace thin coal beds/carbonaceous material. • EPOCH 4 M MARATHON OIL COMPANY PAXTON 2 Tuffaceous Claystone/Tuffaceous Siltstone (2280'-2400') =light to medium gray to light grayish brown with light to medium brown secondary hues; very soft to slightly firm; dominantly amorphous, shapeless, globular cuttings, rare firmer pieces show pdc bit metamorphism silty to clayey to slightly gritty texture from suspended sands; dull, earthy to rarely sparkly lustre from ashy shards; hydrophilic; soluble; moderate to very expansive when hydrated; poor cohesiveness; fair to good adhesiveness; trace micro- thin, very dark brown to black carbonaceous inclusions and laminations; continued thin interbedded coals and carbonaceous material. Sand (2380'-2480') =light to medium gray with slight "salt and pepper" appearance, individual grains dominantly clear to translucent quartz and volcanic glass, medium to dark gray to black, lesser amounts of light to medium greenish gray, trace light bluish green and pale rose; very fine to rare coarse, dominantly fine to medium; angular to sub- angular with trace rounded pebbles; moderately well sorted in fine to medium, poorly sorted in coarse range; dominantly disaggregated with common light gray, ashy to clayey supporting matrix; non to slightly calcareous. Tuffaceous claystone/Tuffaceous Siltstone (2460'- 2600') =light gray to grayish white with light brown to light brownish gray secondary hues; very soft; very sticky; shapeless, globular cuttings silty to clayey texture; dull to slightly sparkly lustre from volcanic glass shard hydrophilic; very soluble; slight to moderately expansive when hydrated; poor cohesiveness; fair to good adhesiveness; moderate to very calcareous overall; abundant very dark brown to black carbonaceous "floating" particles; rare firm pieces display black, micro-thin carbonaceous laminations; scattered thin coal beds. Coal/Carbonaceous Material (2500'-2600') =present in trace amounts as very thin beds and as particles in the tuffaceous claystone/ tuffaceous siltstone country rock; very dark brown to black; very firm to brittle and hard; irregular to splintery; rare large blocky to platy pieces; smooth to matte texture; dull, earthy to slightly resinous lustre; no outgassing detected. Sand (2640-2700') =medium to dark gray with strong "salt and pepper" appearance, individual grains dominantly clear to translucent quartz ahd volcanic glass, medium to dark gray to black, lesser amounts of light to medium greenish gray; very fine to very coarse upper dominantly medium; angular to subangular poorly sorted; disaggregated ; abundant light to medium gray ashy to clayey supporting matrix; non to slightly calcareous; trace to 10% black carbonaceous material/ coal from very thin beds or as loose grains enclosed in the tuffaceous claystone/tuffaceous siltstone. Tuffaceous Claystone/Tuffaceous Siltstone (2660'-2760') =light gray to grayish white with light brown to light brownish gray secondary hues; very soft; very sticky; shapeless, globular cuttings silty to clayey texture; dull to slightly sparkly lustre from volcanic glass shard hydrophilic; very soluble; slight to moderately expansive when hydrated; poor cohesiveness; fair to good adhesiveness; moderate to very calcareous overall. Sand/SandstoneITuffaceous Sandstone (2700'-3200') =most sandstones are massive and dominantly disaggregated; thinly interbedded sandstone is not uncommon, and becomes abundant in local associations with volcanic ash and carbonaceous material; continued locally abundant tuffaceous sandstone; after clay sands are bit disintegrated, the matrix clay goes into solution and only trace blebs of expansive watery sandstone are discernible; some cuttings samples have sand that is nearly 100% disaggregated grains; note that overall color of the sand shifts to darker grays with darker secondary hues due the increasing fractions of lithic grains; sorting is improving overall; the range of grain size appears to be narrowing, and there are only rare examples of a bi-modal distribution; note that even though grains are still dominantly subangular to angular, an increasing fraction of grains are becoming more equi-dimensional. • ~~ EPOCH 5 M MARATHON OIL COMPANY PAXTON 2 Sand/Sandstone/Tuffaceous Sandstone (2700'-3200') =dominant medium dark gray to dark gray with faint brownish gray and olive gray secondary hues; only spotty lighter grays with faint lighter brownish gray secondary hues; dominantly moderate to moderately well sorted in fine upper to medium lower range and locally shifting to medium upper; fining upward is evident in the thicker sand intervals; trace to spotty fractions of sand from very fine lower to granule; loose disaggregated grains continue to be dominant, and often near 100%; rare to locally spotty grain supported sandstone that has weak calcite and/or silica cementation; angular to subangular, discoidal to subdiscoidal; trace to spotty rounded grains; clay matrix supported sandstone is dominant before drilling disintegrates the rocks; also very common is sandstone with very complex inter-grain support that can include volcanic ash, devitrified volcanic ash, crystalline calcite and silica mineralization, powdery silica and calcite and various cryptosilica (chert, chalcedony), in combination with the tuffaceous clays and silts; trace sandstone supported mostly by shards reworked from air fall volcanic ash. Sand/Sandstone/Tuffaceous Sandstone (2700'-3200') =compositional graywacke (>30%lithics); locally borderline to lithic arenite, and occasionally very ashy; estimate 45-75% quartz and (volcanic) glass, trace feldspar, 10-15% chalcedony, chert, and other less defined forms of cryptosilica, 20-45% lithics and mafic minerals; diverse range of lithics from variety of sources, but note 60-80% of lithics fraction are medium gray to dark gray, medium-grade meta, partially schistose phyllite rock fragments that also have varying degrees of surface weathering; 10-15% of the lithics are associated dark gray to grayish black medium-grade metamorphic argillite rock fragments; the other 10-15% lithics are from diverse sources, but dominated by light green-grayish green-variegated green low-grade metamorphic greenstone rock fragments; other lithics include many igneous and sedimentary rocks, plus meta-forms of the same rocks; sedimentary rock fragments include clastic coal, calcareous tuff, micro-conglomerate, hard siliceous sandstones, and various mud rocks. Tuffaceous claystone (2760'-3330') =dominant light brownish gray, but many close variations of gray and brown primary colors and secondary hues; dominantly soft, mushy, hydrophilic, slightly expansive when hydrated and soluble if water saturated; poor to moderate cohesiveness, moderate adhesiveness; also abundant slight to moderately firm and brittle claystones; clayey to ashy to silty to soft matte and mixed textures; earthy to slightly sparkly lustres; grades to all other volcanic ash derived rocks; spotty to abundant visible glass shards; commonly has micro-thin beds, laminations and particles of coal/ carbonaceous shale; pervasive supporting matrix material of sandstones. Coal/Carbonaceous Material (3300'-3420') =Present in trace amounts as very thin beds and as loose inclusion in dominantly tuffaceous claystone/ tuffaceous siltstone formation; very dark brown to black; very firm to brittle and hard; irregular to splintery; rare large blocky to platy pieces; smooth to gritty texture; dull, earthy to slightly resinous lustre; non to trace visible outgassing. Sand (3360'-3480') =medium gray over- all with individual grains dominantly light to medium gray to greenish gray, dark gray to black, abundant clear to translucent quartz and volcanic glass, moderate "salt and pepper" appearance; very fine upper to rare very coarse lower, dominantly fine upper to medium upper poorly sorted overall; dominantly disaggregated with very light gray ashy/clayey supporting matrix common; non to slightly calcareous. Tuffaceous ClaystoneITuffaceous siltstone (3460'-3540') =light to medium gray, rare light brownish gray and brown light brown secondary hues; shapeless, globular cuttings, rare firmer pieces are slightly rounded and occasionally show pdc bit metamorphism; very soft to slightly firm; sticky at times; silty to clayey texture; earthy to slightly waxy luster; hydrophilic; moderate to very soluble; slight to moderately expansive when hydrated; poor to fair cohesiveness fair to good adhesiveness; non to slightly calcareous; trace to common very dark brown to black, micro-thin carbonaceous laminations and inclusions. Coal (3520'-3600') =black with dark brown secondary hues; finely ground up from bit cutting action, larger pieces are blocky to platy, occasionally splintery; planar fracture dominant; firm to moderately hard; brittle at times; smooth to slightly gritty texture; resinous to earthy lustre; present as thin beds in dominantly tuffaceous claystone/ sand formations; trace to abundant outgassing from larger fragments. E~ EPOCH 6 "M MARATHON OIL COMPANY PAXTON 2 Sand (3600'-3720') = light to medium gray with trace "salt and pepper" appearance, individual grains dominantly clear to translucent quartz and volcanic glass, medium to dark gray to black, lesser amounts of light to medium greenish gray; very fine to coarse lower, dominantly medium; angular to subangular; poorly sorted; disaggregated; abundant light to medium gray ashy to clayey sup- porting matrix; non to slightly calcareous; common to abundant thin coal beds in the tuffaceous claystone, siltstone and sand country rock. Tuffaceous Claystone/Tuffaceous siltstone (3680'-3800') =light gray to grayish white with light brown to light brownish gray secondary hues; very soft; very sticky; shapeless, globular cuttings silty to clayey texture; dull to slightly sparkly lustre from volcanic glass shards; hydrophilic; soluble; slight to moderately expansive when hydrated; poor cohesiveness; fair to good adhesiveness; moderate to very calcareous overall; trace to common dark brown to black, micro-thin carbonaceous laminations and inclusions; scattered thin coal beds; trace fine "salt and pepper" sandstone; very hard; very calcareous cement. Sand (3720'-3920') =medium gray to medium dark gray; faint olive gray and brownish gray secondary hues; appearance is pepper with sparse salt; darker gray coloration from abundant phyllite-argillite rock fragments; very fine upper to rare broken granule; dominantly fine upper to medium lower to local medium lower ; moderately to moderately well sorted; disaggregated to soft tuffaceous clay matrix supported, to trace-spotty grain supported with calcite and/or silica cementation; compositional graywacke; estimate 50-80% quartz and glass, trace feldspar, 10-15% cryptosilica (chalcedony, chert), 25-40% lithics and mafic minerals. Sandstone/Sand (3920'-4150') =note very abundant cuttings pieces of consolidated grain supported sandstone that locally approaches 100%; dominant micro-crystalline and powdery calcite cementation and very strongly to moderately calcareous; mostly fragile and friable, but spotty amount is firm to marginally hard; local patchy zones of calcareous sandstone are matrix supported; less abundant sandstone with inter-grain mixture of calcite, silica, volcanic ash, tuffaceous clay, devitrified ash, and occasionally calcareous tuff that is roughly equal matrix and grain supported; note that many disaggregated grains often have a "spot" of attached cementing material; medium light gray with local increase in lightness value to light gray; generally homogenous appearance; very faint light olive gray or light brownish gray secondary hues; lightest colored sand has slightly dirty salt and pepper appearance; very fine lower to coarse upper range; evident fining upward in most massive sections; mostly moderately well sorted in shifting fine lower to medium upper range; dominantly angular to subangular, subdiscoidal to discoidal; rare lithic quartz arenite (sandstone cap rock) to dominant sublithic arenite to lithic arenite; estimate 70-85% quartz and glass, trace feldspar, 5-15% cryptosilica (chalcedony, chert) and various different looking silica fragments; 10-20% lithics and mafic minerals; note decreased phyllite-argillite rock fragments and increased greenstones. Tuffaceous claystone/Tuffaceous siltstone (4180'-4300') =light gray to light brownish gray with yellowish brown and brown secondary hues; very soft; fragile; pulverulent; irregular shaped cuttings; silty to clayey to slightly gritty texture; earthy to slightly sparkly lustre; moderately soluble and expansive when hydrated; poor to fair cohesiveness; poor adhesiveness; non calcareous; trace very dark brown to black, micro-thin carbonaceous laminations and particles; tuffaceous siltstone commonly grading to a very silty sandstone/ sandy siltstone; trace to common light gray to grayish white ashy tuff; very fragile. SandITuffaceous Sandstone (4240'-4400') =light gray to grayish white overall with individual grains dominantly clear to translucent quartz and volcanic glass, trace light gray, dark gray, black,. pale rose and light bluish green lithics; very fine lower to medium lower, dominantly fine grain; angular to subangular; moderate to well sorted; disaggregated to very loosely consolidated with whitish gray, ashy matrix; very fragile; pulverulent; moderate to very calcareous; cont safe Garb contamination; trace thin coal beds/ carbonaceous material. • EPOCH ~M MARATHON OIL COMPANY PAXTON 2 Tuffaceous Claystone/Tuffaceous Siltstone (4340'-4460') =light gray to light grayish brown with light yellowish brown secondary hues; very soft; irregular shaped cuttings with very rare pdc bit action "scooped" appearance; fragile to pulverulent; silty to clayey to slightly gritty texture; dull, earthy to slightly sparkly lustre from strong ashy content; common visible glass shards; moderately soluble; hydrophilic; slight to moderately expansive when hydrated; poor to fair cohesiveness; poor adhesiveness; slight to moderately calcareous; trace very dark brown to black, micro-thin carbonaceous laminations and inclusions; trace thin coal beds. Coal (4420'-4560') =black with dark brown secondary hues; finely ground up from bit action; larger fragments are blocky to platy with planar fracture dominant; smooth to matte texture; earthy to vitreous lustre; present as very thin beds in dominantly tuffaceous siltstone/ tuffaceous sand formation; none to trace visible outgassing. Sand/Tuffaceous Sandstone (4480'-4600') =light gray with light yellowish brown to light brownish gray secondary hues, individual grains dominantly clear to translucent quartz and volcanic glass with light gray, dark gray, black, pale rose and light bluish green lithics; very fine lower to medium lower, dominantly fine grain; angular to subangular; moderate to well sorted; disaggregated to very loosely consolidated with whitish gray, ashy matrix; very fragile; pulverulent; moderate to very calcareous. Tuffaceous Claystone/Tuffaceous Siltstone (4540'-4680') =light gray to light grayish brown with light yellowish brown secondary hues; very soft; irregular shaped cuttings; soft; fragile and pulverulent; silty to clayey to slightly gritty texture; dull, earthy to slightly sparkly lustre from strong ashy tuff content; common visible glass shards; moderately soluble; hydrophilic; slight to moderately expansive when hydrated; poor to fair cohesiveness; poor adhesiveness; slight to moderately calcareous; trace very dark brown to black, micro-thin carbonaceous laminations and inclusions. Sand/Tuffaceous Sandstone (4640'-4760') =light gray with light yellowish brown to light brownish gray secondary hues, individual grains dominantly clear to translucent quartz and volcanic glass, with light gray, dark gray, black, pale rose and light bluish green lithics; very fine lower to coarse upper, dominantly fine grain; angular to subangular; moderately sorted in very fine to medium range; dominantly consolidated with grayish white ashy supporting matrix; slight to moderately calcareous; very fragile and pulverulent sandstone pieces; trace thin coal beds. Tuffaceous Claystone/Tuffaceous Siltstone (4720'-4860') =light gray to light grayish brown with light yellowish brown secondary hues; very soft; irregular shaped cuttings with very rare pdc bit action "scooped" appearance; fragile to pulverulent; silty to clayey to slightly gritty texture; dull, earthy to slightly sparkly lustre from strong ashy content; common visible glass shards; moderately soluble; hydrophilic; slight to moderately expansive when hydrated; poor to fair cohesiveness; poor adhesiveness; slight to moderately calcareous; trace safe carb contamination; trace very dark brown to black, micro-thin carbonaceous laminations and inclusions; note tuffaceous siltstone commonly grades to very sandy siltstone/silty sandstone. Coal (4760'-4920') =black with dark brown secondary hues; finely ground up from bit action; larger fragments are blocky to platy with planar fracture dominant; smooth to matte texture; earthy to vitreous lustre; dominantly thinly interbedded with tuffaceous siltstone and tuffaceous sandstone; occasionally grading to a carbonaceous shale; trace visible outgassing. Sand/Tuffaceous Sandstone (4880'-4960') =light gray with light yellowish brown to light brownish gray secondary hues, individual grains dominantly clear to translucent quartz and volcanic glass, with light gray, dark gray, black, pale rose and light bluish green lithics; very fine lower to coarse lower, dominantly fine grain; angular to subangular; moderately sorted in very fine to medium range; dominantly disaggregated with grayish white ashy supporting matrix; slight to moderately calcareous. • EPOCI-3 $ ~M MARATHON OIL COMPANY PAXTON 2 Sand/Sandstone/Tuffaceous Sandstone (4960'-5200') =also very common silty calcareous very fine sandstone; dominant medium light gray; slight local shifts in lightness value to light gray or medium gray; common very faint light olive gray, light brownish gray and occasionally pale yellowish gray secondary hues; very fine lower to rare coarse upper; mostly moderate to mod well sorted in fine upper to medium lower range; very fine sandstone often grading to very sandy tuffaceous siltstone; evident fining upward in massive sections; trace possible bi-modal; common to abundant grain supported calcite cemented sandstone; calcite in dominant micro-xln and common powdery forms; some sandstone very strongly calcareous; mostly fragile and friable, but spotty firm to marginally hard; patchy calcareous sandstone is matrix supported; also abundant sandstone with inter-grain mixture of calcite, silica, volcanic ash, tuffaceous clay, devitrified ash, and occasionally calcareous tuff that is both grain and matrix supported; note disaggregated grains often have patches of attached cementing material; angular to subangular, discoidal to subdiscoidal; subrounded to rounded, subspherical fraction ranges from trace to rarely common; lithic quartz arenite in uppermost zones of massive sections to sublithic arenite to minor lithic arenite; estimate 70-85% quartz and glass, trace feldspar, 5-15% cryptosilica (chalcedony, chert) and other undifferentiated siliceous fragments, 10-25% lithics and mafic minerals; moderately diverse lithics are slightly dominated by light green to light grayish green to variegated green low grade metamorphic greenstone rock fragments; most minerals are not easily identifiable; note common pale brown translucent to marginally opaque silicate minerals and discernible augite biotite-muscovite-chlorite, citrine, epidote, and zircon. Tuffaceous Siltstone/Tuffaceous Claystone/Volcanic Ash (4860'-5500') =also minor calcareous tuff; volcanic ash derived mudrocks, with tuffaceous siltstone slightly more dominant than the various tuffaceous claystones; note both calcareous and non-calcareous variations of these rocks; also the tuffaceous siltstone is frequently grading to very silty-ashy very fine tuffaceous sandstone; most of these tuffaceous mudrocks are very thinly bedded, and many cuttings pieces display micro-thin laminations, beds, zones, layers and cross-beds of the more than one lithology type; all of these tuffaceous mudrocks share many characteristics as fractions of a greater complex silty-clayey-ashy-sandy mudstone that has localized and often subtle variations and gradations in texture and composition; tuffaceous claystone is usually more massive than the tuffaceous siltstones; dominant color group is medium light gray to medium gray, with faint light brownish gray secondary hues; overall there are many subtle variations of gray and brown colors and secondary hues, and many local shifts in lightness value; note occasional carbonaceous dark brownish gray material when adjacent to coals; most tuffaceous siltstone is slightly firm to very slightly brittle and generally becomes softer as clay content increases and becomes firmer and brittler as sand (and sometimes ash) content increases; trace claystone-siltstone has devitrified ash that has been replaced by silica and/or calcite and is brittle and occasionally tough; claystone is soft to slightly firm, hydrophilic, easily hydrated, soluble, moderately adhesive, poorly to moderately cohesive; all mudrocks with silty to clayey to ashy to various soft matte to mixed textures; earthy to microsparkly lustre when shards have better exposure; gritty texture when sand content increases; rare smooth texture and subwaxy lustre when tuffaceous claystone is completely devitrified and bentonitic; common to locally abundant pieces with micro-thin coal/carbonaceous laminations. Coal (5500'-5600') =black with occasional dark brown secondary hues; firm to moderately hard; brittle at times; blocky to platy; planar fracture dominant trace conchoidal and birdeye fracture; matte to slightly gritty texture; earthy to resinous lustre; trace to common visible outgassing bubbles; occasionally grading to carbonaceous shale. Sand/Tuffaceous Sandstone (5600'-5680') =light gray with trace light yellowish brown secondary hues, individual grains dominantly clear to translucent quartz and volcanic glass, frosted white, trace medium to dark gray to black and light greenish gray; very fine lower to rare coarse upper, dominantly fine; angular to subangular; well sorted in fine range poorly sorted in medium to coarse; disaggregated to very loosely consolidated and supported with white ashy tuff; slight to moderately calcareous; trace light yellowish brown to light brownish gray sandstone; very fine grain; soft; fragile; grading to silty sandstone/ sandy siltstone; non to trace calcareous. ~ EPOCH 9 "M MARATHON OIL COMPANY PAXTON 2 Tuffaceous Claystone/Tuffaceous siltstone (5660'-5800') =light gray to light grayish white with light brownish gray secondary hues; very soft; fragile; pulverulent; irregular, shaped cuttings; silty to clayey to slightly gritty texture; earthy to slightly sparkly lustre; moderately soluble and expansive when hydrated; poor to fair cohesiveness poor adhesiveness; non to slightly calcareous; light brown siltstone commonly grades to a very silty sandstone/sandy siltstone; soft and fragile. Coal/ Carbonaceous Shale (5790'-6100') =black to brownish black to very dusky brown; coal ranges from low grade lignite to marginal sub-bituminous; minor fraction grades to carb shale; brittle and fragile, to brittle and tough; very dense matte to smooth texture; dull to resinous to sub-vitreous to vitreous lustres; dominant irregular to planar fracture; very common thin flat coal fragments; note many local variations of fracture habit and type; occasionally appears more massive and blocky; consistent spotty sub conchoidal, conchoidal, and birdeye fracture; common hackly fragments; abundant fragments of coal have micro-thin alternating zones and laminations of different coal grades and/or other lithologies; some distinctive fragments have thin micro interlaminations of coal/carbonaceous material and volcanic ash; note that in the zones adjacent to coals, the volcanic ash derived lithologies become carbonaceous in part, and display darker grayish brown to brown secondary colorations. Tuffaceous Sandstone/Sandstone/Sand (5680'-6300') =note very abundant fine sandstone that is mostly matrix supported and occasionally grain supported by volcanic ash; part of the supporting volcanic ash is in different stages of devitrification; continued common silty calcareous very fine sandstone that also can be very ashy; dominant medium light gray overall with many slight shifts in lightness value; some of the ashiest sandstone is often light gray to near white; common very faint light olive gray ,light brownish gray and pale yellowish gray secondary hues; very fine upper to rare granule; most is moderate to moderately well sorted in fine lower to medium lower range; evident fining upward in thickest sand sections; possible bimodal distribution in some zones; note significant fraction of very fine to fine, very ashy, well sorted, matrix supported, very light gray to nearly white sandstone that is closely gradational to a very sandy "ash-stone" or sandy ashy claystone that appears to have abundant tiny "floating" quartz grains in addition to pervasive shards; common to abundant grain supported calcite cemented sandstone; calcite in dominant micro-crystalline and common powdery forms; often very strongly calcareous; generally fragile and friable, but spotty firm to marginally hard, especially if silica cemented; locally very abundant sandstone is supported by a soft very calcareous matrix; also very abundant sandstone with inter-grain mixture of calcite, silica, volcanic ash, tuffaceous clay, devitrified ash, and occasionally calc tuff that is often thinly interbedded with tuffaceous siltstone and claystone; note disaggregated grains often have patches of attached cementing material; angular to subangular, discoidal to subdiscoidal; subrounded to rounded, sub-spherical fraction ranges from trace to rarely common; lithic quartz arenite in uppermost zones of massive sections to sublithic arenite to minor lithic arenite; estimate 70-85% quartz and glass, trace feldspar, 5-15% cryptosilica (chalcedony, chert and many other siliceous fragments), 10-25% lithics and mafic minerals; mod diverse lithics slightly dominated by light green to light grayish green to variegated green low grade meta greenstone rock fragments; minerals not easily identifiable but common pale brown translucent to marginally opaque silicate minerals and discernible augite biotite-muscovite-chlorite, citrine, epidote, and zircon. Tuffaceous Siltstone/Tuffaceous ClaystoneNolcanic Ash (5800'-6400') =trace calcareous tuff; volcanic ash derived mudrocks, with tuffaceous siltstone dominant over tuffaceous claystone; note calcareous and non-calcareous variations of these mudrocks; tuffaceous siltstone commonly grades to very silty-ashy very fine tuffaceous sandstone; abundant tuffaceous mudrocks are thinly bedded; many cuttings pieces display micro-thin laminations, beds, zones, layers and cross-beds of more than one lithology type; these tuffaceous rocks share many characteristics, and represent a complex silty-clayey- ashy-sandy mudstone with subtle variations and changes in texture and composition; tuffaceous claystone is generally more massive than tuffaceous siltstone; dominant color group medium light gray to medium gray with faint light brownish gray secondary hues; note many subtle variations of gray and brown colors and secondary hues, and many slight shifts in lightness value; occasional carbonaceous dark brownish gray when adjacent to coals; dominant slightly firm to slightly brittle when silty, and soft, soluble, hydrophilic, sticky as clay content increases. • ~~ EPOCH ~ ° M MARATHON OIL COMPANY PAXTON 2 Coal (6380'-6500') =black with occasional dark brown secondary hues; firm to moderately hard; brittle at times; finely ground up cuttings from pdc bit; blocky to platy; planar fracture dominant trace conchoidal and birdeye fracture; matte to slightly gritty texture; earthy to resinous lustre; trace to common visible outgassing bubbles; occasionally grading to carbonaceous shale. Sand/Tuffaceous Sandstone/Conglomeratic Sand (6440'-6560') =light gray to grayish white with a yellowish gray secondary hues, individual grains clear to translucent quartz and volcanic glass, with "off white" and light gray quartz, and minor medium gray to dark gray to black, yellowish green, reddish orange and bluish gray lithics; very fine lower to very coarse lower, dominantly medium upper to lower; angular to subangular; poorly sorted; unconsolidated to very loosely grain supported with white to whitish gray ashy/ clay supporting matrix; very fragile and pulverulent; abundant visible shards from ashy content; moderate to very calcareous; trace very fine sandstone; light to medium gray with strong "salt and pepper" appearance; soft to slightly firm; non to slightly calcareous. Coal/Carbonaceous Shale (6550'-6720') =very dark brown to black; finely ground up cuttings from pdc bit action; very firm to hard; brittle at times; blocky; planar fracture dominant with trace conchoidal and birdeye fracture in harder, larger fragments; silty to smooth texture earthy to resinous lustre; abundant and vigorous outgassing bubbles observed in larger fragments; coal occasionally grading to a less developed carbonaceous shale/ material. Tuffaceous Claystone/Tuffaceous Siltstone (6640'-6780') =light to medium gray with light brown and light yellowish brown secondary hues; soft to rarely firm; sticky at times; irregular shaped cuttings; silty to clayey texture; dull, earthy to sparkly lustre from high ashy tuff content; moderately soluble and expansive; poor cohesiveness; poor to fair adhesiveness; light yellowish brown to light grayish brown siltstone occasionally grades to a silty sandstone/sandy siltstone; slight to moderately calcareous; rare trace black, micro-thin carbonaceous laminations and particles. Sand/Tuffaceous Sandstone (6720'-6820') =light gray to grayish white with light brown secondary hues, individual grains dominantly clear to translucent quartz and volcanic glass, frosted white, light gray, trace black and greenish gray; very fine lower to rare very coarse upper, dominantly fine upper to medium lower; angular to subangular; moderately well sorted in fine to medium range, poorly sorted in coarse range; dominantly disaggregated to very loosely grain supported with white to whitish gray ashy/clay supporting matrix; moderately calcareous. Coal (6710'-6860') =black with occasional dark brown secondary hues; firm to moderately hard; brittle at times; finely ground up cuttings from pdc bit; blocky to platy; planar fracture dominant trace conchoidal and birdeye fracture; matte to slightly gritty texture; earthy to resinous lustre; trace to common visible outgassing; occasionally grading to carbonaceous shale. Tuffaceous ClaystoneITuffaceous Siltstone (6820'-6960') =light to medium gray to very light gray; soft to firm; often sticky; irregularly shaped cuttings; silty to clayey to ashy to soft matte to mixed textures; earthy to microsparkly lustre if shard content is high; moderately soluble and expansive; poor cohesiveness; poor to fair adhesiveness; light yellowish brown to light grayish brown siltstone occasionally grades to a very sandy siltstone or very silty tuffaceous sandstone; most is slight to moderately calcareous, but some of the ashiest siltstone has been devitrified in part, and the devitrified portion has been entirely replaced by calcite and strongly effervesces; common pieces with micro-thin coal/ carbonaceous laminations and particles; most tuffaceous claystone-siltstone is a major constituent of a greater complex silty-ashy-clayey mudstone derived from re-deposited and reworked volcanic ash. Tuffaceous Sandstone/Sandstone/Sand (6820'-7450') =note abundant cuttings pieces that display very thin or micro-thin interbedding of various types of sandstones, various forms of the tuffaceous mudrocks and various types of coal and other carbonaceous material; note that a significant fraction of all present lithologies are carbonaceous in part when adjacent to coal; especially prominent are brown- colored carbonaceous tuffaceous siltstone and carbonaceous tuffaceous sandstone; sand grain sized clastic coal fragments are a prominent constituent of the tuffaceous sandstone in this interval; note that stained quartz grains appear to be more abundant in carbonaceous-rich rocks. ~~ EPOCH 11 ~M MARATHON OIL COMPANY PAXTON 2 Sand/Sandstone/Tuffaceous Sandstone/Conglomeratic Sand/Conglomerate (6820'-7450') _ continued very common matrix and grain supported sandstone with inter-grain volcanic ash; a significant fraction of the ash is in different stages of devitrification, resulting in sandstone with varying tenacity; very common non to very calcareous silty sandstone; dominant medium light gray overall with slight shifts in lightness value; some very ashy sandstone is light gray to "off-white"; common very faint light olive gray, light brownish gray and pale yellowish gray secondary hues; very fine upper to conglomerate; dominant moderately to moderately well sorted in fine lower to coarse upper range; evident fining upward in nearly all sand sections; bimodal conglomerate clasts are locally present in zones of finer sandstone; continued very fine to fine, very ashy, well sorted, matrix supported, very light gray sandstone that grades to sandy tuffaceous claystone, and has floating quartz grains in addition to abundant shards; common to locally very abundant grain supported calcite-cemented sandstone that appears "cleaner" than the other sand fractions; calcite is present in both micro-crystalline and powdery variations and usually is very strongly calcareous; generally fragile and friable, but spotty firm to marginally hard, especially if silica cemented; local trace sandstone has significant replacement by secondary calcite; note very abundant sandstone with inter-grain mixture of calcite, silica, volcanic ash, tuffaceous clay, denitrified ash, and occasionally calcareous tuff that is often thinly interbedded with tuffaceous siltstone and claystone; note abundant disaggregated grains with patches of attached cementing material; angular to subangular, discoidal to subdiscoidal, with trace to rarely common fraction of subrounded to rounded and subspherical; lithic quartz arenite (in uppermost zones of massive sections) to sublithic arenite to lithic arenite; estimate 65- 85%quartz and glass, trace feldspar, 5-15% cryptosilica (chalcedony, chert and many other siliceous fragments), 15-25% lithics and mafic minerals; diverse lithics are slightly dominated by light green to light grayish green to variegated green low grade meta greenstone rock fragments; pale brown translucent to marginally opaque silicate minerals are common; note that most minerals are not readily identifiable, but augite biotite-muscovite-chlorite, citrine, epidote, and zircon are present in trace or greater amounts. Tuffaceous claystone/Tuffaceous siltstone (7420'-7540') =light brown to light brownish gray to medium brown with dark brown secondary hues; soft to firm; irregular shaped cuttings with pdc bit metamorphism; silty to clayey texture; dull, earthy luster; occasionally sparkly; hydrophilic; soluble; expansive when re-hydrated; poor to fair cohesiveness; fair to poor adhesiveness; non to slightly calcareous; trace very dark brown to black, micro-thin, carbonaceous particles and laminations; trace to common dark brown carbonaceous material; soft; very silty. Sand/Tuffaceous Sandstone (7500'-7620') =light gray overall with individual liths dominantly clear to translucent and frosted quartz and volcanic glass, trace amounts of light gray to light greenish gray, dark gray to black, pale and dusky red; very finer upper to very coarse lower, dominantly fine upper to medium upper; angular to subangular; fair to good sorting in very fine to medium lower, poor sorting in coarse range; generally unconsolidated to very loosely grain supported with a whitish gray to mottled, ashy tuff matrix; fragile to pulverulent; moderate to very calcareous. Coal (7580'-7680') =black with occasional dark brown secondary hues; firm to moderately hard; brittle at times; finely ground cuttings; blocky to platy; planar fracture dominant trace conchoidal and birdeye fracture; matte to slightly gritty texture; earthy to resinous lustre; trace to common visible outgassing bubbles; occasionally grading to carbonaceous shale. Tuffaceous Claystone/Tuffaceous siltstone (7660'-7740') =light brown to light brownish gray; very soft; fragile; sticky at times; irregular shaped cuttings; silty to clayey texture; dull, earthy lustre; moderately soluble; very expansive when rehydrated; poor cohesiveness; fair adhesiveness; trace very dark brown to black, micro-thin carbonaceous laminations and particles; trace thin coal beds; trace light gray to light grayish white ashy tuff; pulverulent; trace visible shards. Sand/Tuffaceous Sandstone (7720'-7800') =light gray to grayish white with light brown secondary hues, individual grains dominantly clear to translucent quartz and volcanic glass with "off-white", light gray, trace black and greenish gray lithics; very fine lower to rare very coarse upper, dominantly fine upper to medium lower; angular to subangular; moderately well sorted in fine to medium range, poorly sorted in coarse range; dominantly disaggregated to very loosely grain supported with white to whitish gray ashy/clay supporting matrix; moderately calcareous. € EPOCH ~ 2 M MARATHON OIL COMPANY PAXTON 2 Sand/Tuffaceous Sandstone/Conglomeratic Sand (7810'-7940') =very light gray to grayish white overall with light yellowish brown secondary hues, individual grains are dominantly clear to translucent quartz and volcanic glass with minor very pale gray, medium to dark gray, light greenish gray and pale rose; very fine lower to rare very coarse upper; dominantly fine and moderately well sorted; angular to subangular; disaggregated to very loosely grain supported with ashy/ tuff matrix; very light gray to mottled white; fragile to pulverulent; non to moderately calcareous; trace light greenish gray sandstone; fine grain; friable to fragile; non calcareous. Tuffaceous Claystone/Tuffaceous siltstone (7880'-8000') =light gray to light grayish brown with light brown secondary hues; soft to slightly firm; irregular shaped cuttings; silty to clay to slightly gritty texture from suspended sands; earthy to slightly sparkly lustre; trace visible shards; poor cohesiveness and adhesiveness; non to slight calcareous; siltstone occasionally grades to a very sandy siltstone/silty sandstone; light brown to light yellowish brown; soft; fragile; abundant ashy tuff light grayish white to a mottled light brown; pulverulent; non calcareous. Sand/Sandstone/Tuffaceous Sandstone/Conglomeratic Sand/Conglomerate (7940'-8436') _ dominant medium light gray overall; faint to strong light olive gray secondary hues; very faint light brownish gray and light yellowish gray secondary hues; often locally increasing in lightness value to light gray, and some the "ashiest" sandstones are occasionally very light gray; often has slightly "dirty", slightly "olivish" salt and pepper appearance, and some has strongly contrasting black and white appearance with mafic and lithic grains floating in volcanic ash; very fine lower to spotty conglomerate clasts; very fine fraction consists almost entirely of glass shards winnowed from volcanic ash and also closely associated with the tuffaceous silt/clay as a size gradational constituent, and as floating grains; very coarse and larger grains/ clasts usually occur in the basal zones of massive sand sections, but also occur as a trace to spotty minor constituent in bimodal sands; very dominant moderate to moderately well sorted in fine lower to coarse upper range; very evident fining upward in the more massive sand sections; the dominant size distribution of the sorted grains reflects the fining upward; the most abundant fraction of sand is fine upper to medium upper; very dominant angular to subangular, and discoidal to subdiscoidal, but note rounded grains with better developed sphericity are trace or better fraction of every size mode, and in conglomeratic zones can be very common. Sand/Sandstone/Tuffaceous Sandstone/Conglomeratic Sand/Conglomerate (7940'-8436') =very abundant sandstone with prominent inter-grain volcanic ash and tuffaceous clay; note that indicated tuffaceous sandstone is almost entirely matrix supported by volcanic ash-tuffaceous clay; both non- tuffaceous and tuffaceous grain supported sandstones have a significant inter-grain fraction of material that appears to be bentonitic devitrified ash, and/or ash partially or entirely replaced by calcite and silica; the changing stages of devitrification result in sandstones of varying tenacity, from fragile and crumbly to marginally hard; the "cleaner-looking" calcite cemented sandstone is less abundant overall, but still a major fraction; calcite is present in both microcrystalline and powdery forms; calcareous sandstones are usually strongly effervescent; note spotty to locally common cuttings pieces display very thin alternating beds of harder "cleaner-looking" calcareous sandstone and softer tuffaceous sandstone; a prominent third group of sandstones are both grain and matrix supported by a very mixed and mottled complex of different cements, combinations of silt-clay-ash, devitrification products, and mineral replacement stages. Sand/Sandstone/Tuffaceous Sandstone/Conglomeratic Sand/Conglomerate (7940'-8436') _ dominant composition is sublithic arenite to marginal lithic arenite; note localized shifts within major sand sections: to lithic quartz arenite in very thin "cap" zones, or to compositional graywacke in the basal zones; estimate 65-85% quartz and glass, trace feldspar, 5-15% cryptosilica and other undifferentiated silica (chalcedony, chert, pale brown translucent silicates), and 10-30% lithics and mafic minerals dominated by greenstones. • ~~ EPOCH 13 ~M MARATHON OIL COMPANY PAXTON 2 • r~ LJ 3.2. SAMPLING PROGRAM AND DISTRIBUTION PAXTON 2 Set Type and Purpose Interval Frequenc Distribution Marathon Oil Company c/o C & M Storage, Inc. Washed and Dried 20' 3311 S U.S. Highway 77 A 1630' - 8436' Intervals Schulenburg, TX 78956 Attn: Dave Martens 713) 296 3302 BOX INTERVAL : 1630'-2660', 2660'-3700', 3700'-4700', 4700'-5800', 5800'-7020', 7020'-7900', 7900'-8436' TD EPOCH 14 ~M MARATHON OIL COMPANY PAXTON 2 4. DRILLING DATA 4.1. DAILY ACTIVITY SUMMARY 1/14/2008: Glacier No.1 begins moving all rig modules and components and the camp trailers from the drilling pad in the Marathon Sterling Unit Gas Field to the Grassim Oskolkoff pad location in the Ninilchik Unit Field. All major rig items are spotted and set up. Rig-up begins. 1/15/2008: Glacier No.1 continues moving, spotting, setting and rigging up all major modules, the accessory rig components, the camp trailers and communication equipment. 01/16/2008: Continuing PAXTON 2 rig-up operations by Inlet Drilling on Glacier No. 1. Ralph Winkelman arrives on location and rigs up Unit 6 power, the Gaitronics rig communications, the wireless communication to camp, the network communications on the rig and the camp computers. 01/17/2008: Continuing Glacier No.1 rig up operations. Install T-bar and turnbuckles. Adjust torque tube. Rig up control and Gaitronics lines to pump #3. Pick up and hang Topdrive. Pick up and install slide. Rig up service loop and kelly hose. Repair air relief line on #1 carrier. Run Gaitronics line from camp to rig. Rig and install bails, elevators, rig tongs, pipe spinner and derrick board. Test run #1 and 32 mud pumps. Make cut on 20" conductor and dress stub. Install starter head and test to 300psi for 10 minutes. Install 4" valve on starter head and weld nipple on conductor. Test gas alarms. Inspect accumulator bottles and replace as needed. Install 2" valve on conductor. Hold weekly safety with all personnel from both crews. Clear ice and snow on berm margins prior to tacking down the remaining loose Herculite in place on the top of berms. Function test Topdrive. Continue working on berms. Repair camp Gaitronics. Nipple up diverter. Install flow line adaptor and pitcher nipple. Change camlock on pitcher nipple. Begin mixing mud. Install kill line. Make up mud manifold. Install choke. bleeder and fill- up lines. Install knife valve. Lay out, set up and make up diverter line. Unload HWDP and various tools from trailers. Finish mixing mud. Craig Silva joins Ralph Winkelman on location. The final rigging up of the Rigwatch 8.7 system, all Unit #6 computers and internal equipment, all camp computers, the camp network and the gas system is completed. Unit #6 is organized and prepared for logging. Craig Silva calibrates the gas system, starts the DML database and makes final preparations to begin logging Marathon PAXTON 2. 01/18/2008: Chain down diverter line. Rig up kill line and attach to conductor. Rig up manual trip tank gauge. Set pipe racks. Test diverter, stack and accumulator. Check flow line and pit sensors. Rig up to pick up drill pipe. Rack, tally, pick up, drift, make up and stand back 15 stands of 5" drill pipe and 10 stands of HWDP (plus jars). Pick up and make up short clean out assembly (16" bit, motor, stabilizer, pony collar, drill collars). Run in 20" conductor with HWDP and tag top of fill at 77'. Clean out conductor from 77' to 135'. Drill out of conductor and Spud Well. Drill from 135' to 167'. Replace bolts on Topdrive and rewire its pipe guide. Drill from 167' to 225'. Circulate bottoms up. Circulate around Hi-Vis sweep. Repair hydraulics and restore throttle control of tugger controls located near v-door. Correct throttle installation error. Pull out of hole with clean out assembly and lay down bit. Blow down surface equipment. Pick up, make up, orient, scribe, downlink, program and run in hole directional BHA. Tag at 225' with no fill. Drill from 225' to 329'. 01/19/2008: Drill (rotating and sliding) from 329' to 1630'. Circulate bottoms up. Pump around 40 bbl Hi- Vis sweep. Continue to circulate and clean. • ~~ EPOCH 15 '"M MARATHON OIL COMPANY PAXTON 2 01/20/2008: Finish circulating and conditioning. Check for flow. Pump dry job. Pull out of hole (SLM) to 181' (top of directional tools) on wiper trip. Run back in hole to 1599'. Wash down from 1599' to 1630' with no fill. Circulate bottoms up. Record 114 units of wiper gas. Pump around 40 bbl Hi-Vis sweep. Circulate hole clean. Check for flow. Pump dry job. Blow down lines. Pull out of hole (SLM with no correction) from 1630' to top of HWDP at 842'. Pull and stand back HWDP (plus jars) to 181' and then break and lay down directional assembly (shock sub, crossovers, flex joints, NM crossover, MWD tool, pony DC, stabilizer, motor, bit). Lay down bit handling tools. Clean and clear rig floor. Rig up to run casing. Readjust and reset Topdrive rail. Rig up stabbing board. Move break-out tongs to driller's side and install correct tong head. Change out double kelly valve. Install and make up Weatherford's Lafleur fill-up tool. Remove hydraulic elevators and short bails. Install long bails and pick up line. Install casing elevators. Arrange tugger lines for hanging casing tongs. Rig up Weatherford casing tongs and tall snub post. Remove rotary bushings. Install Weatherford casing spider slips. Make up EZ-turn low torque valve onto casing swedge to act as a safety valve, then function test, record in IADC and leave in open position on the rig floor. Monitor trip tank. Stage centralizers on rig floor. Pre-clean casing threads on the shoe track joints. Hold pre-job meeting with all hands on procedures and safety for running surface casing string. Run in hole with 103/4" casing as per Marathon program. Pick up, make up and run in hole shoe track (shoe joint, spacer joint, float collar). Clean and Bakerlok casing threads on each successive joint while making up shoe track. Rig circulating tool and pump through to check floats. Continue to run in hole with 10 3/4" casing, filling each joint, and land casing at 1616.75'. Circulate and condition mud. Pick up and make up BJ cementing' head with top and bottom plugs pre-installed. Rig up cementing lines. Hold pre job meeting on safety and procedures for cement job. Continue to circulate and condition well (1 1/2 casing volumes). Pump 40 bbls of Mud Clean II with rig pumps. Switch to BJ cementing unit. Pump 4.60 bbls of water ahead and pressure test lines to 2746psi. Batch up cement. Drop 1st (bottom) plug and pump 208.0 bbls of 12.Oppg cement slurry (457 sacks Class G cement with 112.35 bbls of mix water and accelerator chemicals for 10.335 gal/sack yield). Drop 2nd (top) plug and kick out with 5.9 bbls of water. Displace with 163 bbls of 9.6ppg mud. Slow down pump rate before bumping. Bump plug on time with 1011 psi overpressure (1439 psi total). Bleed off and check floats. • Floats held. Cement in place. Begin wait on cement. Clean cellar. Flush and wash-up all rig cementing and flow lines. Blow down all lines. Rig down BJ cementing head and lines. Begin pumping out and cleaning pits. Rig down and load off Weatherford's casing running tools. Fold up stabbing board. Break out and lay down landing tools. Lay down casing elevators. Clear and clean rig floor. Change out snubbing post. Re-hang tongs. Rinse out cellar. Change oil in carrier motors. Nipple down and remove 16" diverter line and knife valve. Nipple down trip tank line, flow line and kill line. Remove and lay down mousehole. Disconnect chains to stack. Prepare to hoist up annular preventer. 01/21/2008: Continue pumping and hauling off mud ,and begin cleaning pits. Change bails. Nipple down fill-up and bleeder lines. Secure turnbuckles out the way. Nipple down bell nipple and move flowline extension aside. Make rough cut on 10 3/4" casing and lay down. Secure bridge crane to annular. Nipple down and load off diverter stack. Remove starter head. Make cut on 20" conductor and lay down. Make final dressed cut on 10 3/4" casing and lay down. Install 10 3/4" slip-lock connection by 11" 5M flanged multi-bowl wellhead and test to 1600psi for 10 minutes. Install flowline extension and DSA spacer spool. Pick up annular with bridge crane. Put doublegate on rack, spot under annular and nipple up. Change elevators. Rebuild low torque valve and install on mud manifold. Begin building Flo- Pro mud system. Thaw, rack, stack, bolt up and hammer up mud cross and single gate to the double gate and annular preventer. Install choke hardline and adaptor spool. Install check valve and kill line. Install quick connects on annular. Repair broken fitting on blind rams. Nipple up pitcher nipple and flow line adaptor. Chain up turnbuckles to stack. Install trip tank valve and actuator. Load drill pipe on pipe racks. Pull wear ring. Make up and run in test joint assembly. Set test plug. Rig up testing equipment. Pressure up to begin testing BOPE and immediately observe leak at lower DSA. Work through adjustment procedures until leak stops. Proceed with testing BOPE. • ~ EPOCH 16 ~M MARATHON OIL COMPANY PAXTON 2 • 01/22/2008: Test all BOPE (dart, annular, upper topdrive kellycock, CMVs 10-11-12, floor valve, lower topdrive kellycock, upper pipe rams, CMVs 1-6-8-9, inside kill valve, CMVs 2-5-7, HCR, manual choke, lower pipe ram, blind rams, CMVs 3-4) to 250psi Lo/ 2500psi Hi for 5 minutes. Test accumulator. Rig down testing equipment. Pull test plug. Set wear bushing. Test casing to 2000psi for 30 minutes. Rig down blow down line. Pick up, drift, make up, run in hole, and pull out standing back and strapping 20 stands/40 joints of 5"drill pipe. Slip 120', cut 146' of drill line. Adjust kick roller. Set and check crown-o- matic. Work on trip tank valve and actuator. Pick up, make up and run in hole directional assembly to 820'. Scribe, orient and shallow test MWD. Continue running directional assembly in hole on 5" drill pipe to 1514'. Wash from 1514' to 1572'. Drill out shoe tract from 1572' to 1630'. Drill 20' of new hole from 1630' to 1650'. Circulate bottoms up. Pump 25 bbls of water, followed by 30 bbl Hi-Vis sweep and chase with new 9.1 ppg Flo-Pro mud to displace the old spud mud. Rig up and run Formation Integrity Test to 15.Oppg EMW. Blow down choke. Begin building up Flo-Pro mud volume. Drill from 1650' to 1693'. 01/23/2008: Drill from 1693' to 2771'. Circulate bottoms up. Check for flow. Pull out of hole on wiper trip to 1574' (inside 10 3/4" shoe). Lube rig, crown, Topdrive and carrier. Change out tong inserts. Run back in hole to 2708'. Wash down from 2708' to 2771'. Drill (rotating and sliding) from 2771' to 3002'. 01/24/2008: Drill (rotating and sliding) from 3002' to casing point at 3919'. Circulate bottoms up. 01/25/2008: Finish circulating bottoms up. Circulate hole clean. Check for flow. Pull out of hole to 1574' (inside shoe) on wiper trip. Run back in hole to 3844'. Wash down from 3844' to 3919' with no fill. Circulate bottoms up. Record 169 units of wiper gas. Pump around Hi-Vis sweep with minimal increase in cuttings. Circulate hole clean. Check for flow. Pump dry job. Blow down mud lines. Pull out of hole (SLM). Drop rabbit. Pull out to top of directional tools at 162'. Pull and stand back flex collars. Pull, break and lay down remaining directional tools (crossovers, MWD, pony DC, stabilizer, motor, bit). Lay down handling tools. Blow down mud lines. Clear and clean rig floor. Hold pre-job meeting with Weatherford Wireline Services on procedures and safety for rigging up and running wireline logging • assembly. Rig up WWS to run logs. Make up, pick up and run in Quad-Combo logging tool assembly. Load neutron tool sources. Run in hole with Q-C assembly and tag bottom at 3919'. (Record 10 3/4" shoe at 1606' on way in). Log up from 3919' to 1300'. Pull out of hole with wireline assembly. Remove sources. Pull, break and lay down logging tools. Rig down and load off WWS equipment. Pick up, make up, run in, cross to HWDP, and continue running in hole short assembly (bit, bit sub, float sub, pony DC, flex collars, crossover) for clean out run. Run in hole on HWDP to 759' and on 5" drill pipe to 5850'. Wash down from 5850' to 3919' with no fill. Circulate bottoms up. Record 88 units of trip gas. Pump around Hi-Vis sweep with minimal increase in cuttings. Continue to circulate and clean hole. 01/26/2008: Continue to circulate and condition hole. Check for flow. Pump dry job. Pull out of hole laying down drill pipe to 760'. Run in hole with 3 stands of drill pipe still in derrick. Pull out of hole laying down drill pipe, HWDP, jars and clean out run assembly (crossover, flex collars, stabilizer, float sub, bit sub, bit). Lay down handling tools. Clear and clean rig floor. Pull wear bushing. Pick up landing joint. Make up and dummy run 7 5/8" casing hanger. Change upper pipe rams to 7 5/8" and test to 250psi Lo/2500psi Hi. Rig up to run casing. Move break-out tongs to driller's side and install correct tong head. Rig down pipe spinner. Readjust and reset torque tube. Remove hydraulic elevators and short bails. Rig up Weatherford casing tongs and tall snub post. Troubleshoot stuck stabbing board. Free up, rig up and test stabbing board. Change out double kelly valve. Install and make up Weatherford's Lafleur fill-up tool. Install long bails and pick up line. Install casing elevators. Arrange tugger lines for hanging casing tongs. Remove rotary bushings. Install Weatherford casing spider slips. Make up EZ-turn low torque valve onto casing swedge to act as a safety valve, then function test, record in IADC and leave in open position on the rig floor. Monitor trip tank. Stage centralizers on rig floor. Pre-clean casing threads on the shoe track joints. Hold pre job meeting with all hands on procedures and safety for running 7 5/8" casing string. Run in hole with 7 5/8" casing as per Marathon program. Pick up, make up and run in hole shoe track (shoe joint, spacer joint, float collar). Clean and Bakerlok casing threads on each successive joint while making up shoe track. Rig circulating tool and pump through to check floats. Continue to run in hole with 7 5/8" casing, filling each joint, to 1338'. Troubleshoot and and correct Weatherford electrical • problem. Continue running in hole with 7 5/8" casing from 1338' EPOCH 17 ~M MARATHON OIL COMPANY PAXTON 2 01/27/2008: Continue running in hole with 7 5/8" casing as per Marathon program, filling each joint, from . 1338' to 1600'. Circulate bottoms up. Record 4 units maximum of gas. Continue running 7 5/8" casing in hole from 1600', filling each joint, and land casing at 3902.38'. Rig down and load off casing running tools. Blow down. Topdrive. Make up swedge onto landing joint and begin circulating and conditioning mud. Circulate bottoms up. Record 12 units of trip gas. Continue to circulate and condition mud. Rig up cementing lines. Begin pre-mixing cement in pods. Circulate and condition well for total of 1 1/2 casing volumes. Pre-treat 172 bbls of mud with 2ppg sodium bicarbonate prior to cement job. Transfer excess mud in pits out to trucks and begin hauling off. Rig down swedge. Pick up and install BJ cementing head with top and bottom plugs pre-installed. Rig up cementing lines. Hold pre job meeting with all hands on safety and procedures for cement job. Switch to BJ cementing unit. Pump 2.6 bbls of water ahead and pressure test lines to 3004psi. Drop 1st (bottom) plug and pump 31.7 bbl sweep of 10.5ppg MCS4D (using 25.68 bbls water). Batch up cement. Pump 98.0 bbls of 12.Oppg lead cement slurry (265 sacks Class G cement with 48.34 bbls of mix water and accelerator chemicals for 7.662 gal/sack yield), and then pump 28.3 bbls of 15.8ppg tail cement slurry (150 sacks Class G cement with 17.64 bbls of mix water and accelerator chemicals for 4.939 gal/sack yield). Drop 2nd (top) plug and kick out with 5.7 bbls of water. Displace with 170.98 bbls of treated 9.6ppg mud. Slow down pump rate before bumping. Bump plug exactly on time with 1019psi over displacement pressure (1602 psi total). Bleed off and check floats. Floats held. Cement in place. Begin wait on cement. Flush, blow down and rig down BJ cementing head and lines. Flush and blow down flow line. Blow down all remaining open lines. Change out snubbing post. Break, lay down and load off cementing head, landing joint and fill-up tool. Change out long bails to short, and casing elevators to pipe elevators. Lay down, load off long bails and casing elevators. Clear and clean rig floor. Clean cellar. Begin pumping out and cleaning pits. Rearrange tugger line. Switch out casing tongs to pipe tongs. Install pack-off and test to 5000psi for 30 minutes. Rig up stack flusher. Flush the BOPE stack. Blow down the Topdrive and all associated mud lines. Change upper pipe rams to 2 7/8" by 5 1/2" variable. Change lower pipe rams to 4". Change out saver sub. Lay down all 5" subs and equipment. Change out elevator inserts. Pick up 4" subs and equipment. Pull wear ring. Make up and run in test joint assembly. Set test plug. Rig up testing equipment. Test all • BOPE (dart, annular, upper and lower Topdrive IBOPs, floor valve, upper and lower pipe rams, inside kill valve, HCR, manual choke, blind rams, CMVs 1-12) to 250psi Low/ 2500psi High for 5 minutes. Test accumulator. Rig down test equipment. Pull test plug. Set wear ring. Rig up and test casing to 2000psi for 30 minutes. Rig down test equipment and blow down line. Readjust position of torque tube. Fold up and put away stabbing board. Rig up handling equipment for picking up 4" drill pipe. 01/2812008: Strap, drift, pick up, make up, run in hole and then pull out of hole standing back 4" drill pipe (to 4537.45' on the bank). Pick up, make up and run in hole directional tools (bit, motor, stabilizer, pony collar, MWD, filter sub, 2 flex joints, crossover), then strap, pick up, make up and continue running in hole with 8 joints (4 stands) of 4" HWDP, jars and 34 more joints (17 stands) of HWDP for a total bottom hole assembly to 818.05'. Calibrate block height for BHI's AUTOTRAK run. Hook up (5000psi rated) 2" hoses to BPA manifold and surface test. Blow down mud lines. Strap, drift, pick up, make up and run in hole singles of 4" drill pipe from 818' to top of float collar at 3817'. Drill on float collar at 3817'. 01/29/2008: Drill out float collar at 3817'. Continue to drill out shoe tract (float collar, cement, casing shoe at 3902', rathole) to 3919'. Drill 20' of new hole to 3939'. Circulate bottoms up. Circulate hole clean. Swap over old 9.6ppg Flo-Pro mud with new 9.1 ppg Flo-Pro mud. Perform Formation Integrity Test to 15.Oppg EMW (9.05 mud, 3453' tvd, 1070psi). Drill ahead from 3939' to 5221'. 01/30/2008: Drill from 5221' to 5545'. Note leaking wash pipe. Pull out of hole on wiper trip to 3898' (just inside shoe) to make repairs. Change out wash pipe. Replace grabber dies. Change out stabbing guide from 5" to 4". Adjust load lines from carrier to mast. Service/tube rig, carrier and Topdrive. Clear rig floor of tools and ready rig to run in hole. Change seal on mud saver valve. Run back in hole to 5411'. Do brief MAD pass and log from 5411' to 5421'. Wash down from 5421' to bottom 5545'. Work through tight section from 5485' to 5530' while washing down. Record 161 units of wiper gas. Drill from 5545' to 5984'. 01/31/2008: Drill from 5984' to 7089'. 02/01/2008: Drill from 7089' to 8232'. E~ EPOCH ~ $ ~M MARATHON OIL COMPANY PAXTON 2 02/02/2008: Drill from 8232' to Total Depth of well at 8436'. Circulate bottoms up. Pump around Hi-Vis . sweep. Circulate hole clean. Pull out of hole 5 stands from 8436' to 8120'. Pump dry job. Continue pulling out of hole to 5348'. (Worked through 20 sticky, /edged or tight spots while pulling out, but no serious problems wiping hole). Run back in hole from 5348' to 8372'. (Kelly up 5 times and ream and work through tight zones on way back in at 6109', 6342', 6429', 6482' and 7639'). Wash down from 8372' to bottom at 8436'. Circulate bottoms up. Record 218 units of wiper gas. Pump around Hi-Vis sweep. Circulate Hi-Vis sweep. Check for flow. Pump dry job. Pull out of hole (SLM) from 8436'. Pull through sticky spot at 4946'. Kelly up and work and backream from 4793' to 4802'. Continue pulling out of the hole without tight hole incident to 1942'. Observe broken elevator safety latch pin. Replace latch pin. 02/03/2008: Continue pulling out of hole (SLM) from 1942' to top of bottom hole assembly at 818'. (No correction on strap). Pull and stand back HWDP (and jars) to top of directional tools at 147'. Break, lay down and load off directional tools (crossover, flex joints, filter sub, MWD, short NMDC, stabilizer, motor, bit).. Install com line and downlink recorded data before breaking down MWD tool. Nipple down and lay down BHI bypass valve manifold. Blow down mud lines. Clear and clean rig floor. Hold pre-job meeting with Weatherford on procedures and safety for rigging up and running wireline tools. Hang sheaves and rig up Weatherford's wireline running equipment. Pick up and make up Quad-Combo logging tool assembly. Load sources. Run logging assembly in hole. Continue running Q-C wireline logging assembly in hole and tag bridge at 6678'. Try to work down past, but unable to get past bridge. Attempts to properly orient density caliper to log up from this point also fail after repeated attempts. Pull out of hole to 6611' and stick tools. Tool assembly stuck for 20 minutes. Pull close to maximum on tool assembly (5870 Ibs) and free tools. Pull up to 5800' and able to orient density caliper. Log up from 5800' to 3800'. Pull assembly out of hole. Unload sources. Handle, break and lay down logging assembly. Rig down wireline running equipment and sheaves. Hold pre-job meeting on procedures and safety for handling Weatherford's shuttle logging system. Strap, drift, lay out and partially make Quad-Combo logging tools. Load, pick up and make up reamer, CLS, stabilizer, 5 joints of 3 1/2" drill pipe and lower latch. Pick up and make up inner string of Weatherford's Quad-Combo logging tools, upper latch and float. Install . sources. Install, seat and latch up logging assembly in 3 1/2" drill pipe. Run shuttle logging assembly in hole to 182'. Pressure-flow check tool assembly. Run shuttle logging assembly in hole on 5" HWDP. (Pressure-flow check tool assembly at 722', 3820', 6115' and 8163' on way in, using staged 2,4 and 6 bpm flow rates). (Hole tight going in at 6030', 6203' and 6678'). Wash down from 8407' to bottom at 8436'. Circulate bottoms up and continue to clean and condition hole. Record 228 units of trip gas. 02/04/2008: Continue to circulate and clean hole with Weatherford Logging Service Quad-Combo shuttle system in hole. Pull up hole to 8319'. Drop and pump down Messenger dart to engage, release, push out and deploy shuttle logging tools. Note that pump pressures remained low, and failed to match the expected profile and amount of increase that indicates when shear out and deployment conventionally occur. Unknown if seating plug was previously sheared but suspect tool had been pre-deployed. Assume full extension of tools and bottom of assembly at 8421'. Check for flow. Pump dry job. Blow down lines. Pull out of hole at a controlled 30' per minute rate, logging up with Quad-Combo assembly from 8421' to 3800'. Pull out of hole at normal rate from 3800' to top of 5" HWDP at 852'. Pull and stand back HWDP to top of shuttle at 303'. Break and lay down 3 1/2" drill pipe. Remove neutron sources. Obvious damage to the Quad-Combo logging string when looking at the bottom connection of the neutron tool. Pull and hang off logging assembly to assess damages. Note lower 23.46' of the assembly (entire induction tool and all but 4' of the sonic tool) had been ripped away and left downhole. Inspect, break, lay down and load off remaining logging tools. More thorough assessment of tools to be done on catwalk. Blow down mud lines. Clear and clean rig floor. Cut (400') and slip drill line. Hold pre job meeting with Weatherford on procedures and safety for rigging up and running wireline tools. Hang sheaves and rig up Weatherford's wireline running equipment. Pick up and make up a new Quad-Combo logging tool assembly. Load sources. Run logging assembly in hole. Continue running Quad-Combo wireline logging assembly in hole and tag bridge at 5880'. Try to work down past, but unable to get past bridge after several attempts. Pull assembly out of hole. Unload sources. Handle, break and lay down logging assembly. Rig down wireline running equipment and sheaves. Wait for Weatherford to travel to its main shop, assemble and make up a new set of shuttle specific logging tools (latches, floats, knuckles, connectors, rings), and then return to the rig. Service Topdrive, blocks, crown and carrier while waiting for Weatherford. EPOCH 19 '"M MARATHON OIL COMPANY PAXTON 2 02/05/2008: Continue to service rig while waiting for Weatherford Wireline Services to arrive at the rig • with a rebuilt shuttle system. After WWS's return, briefly strap, drift, lay out and partially make up the Quad-Combo logging tools as a pre-check before running in the hole. Hold pre job meeting on procedures and safety for handling the shuttle logging system. Re-load, pick up and make up the shuttle outer string (reamer, CLS, stabilizer, 5 joints of 3 1/2" drill pipe and lower latch). Pick up and make up the shuttle inner string (Quad-Combo logging tools, upper latch and float). Load neutron tool sources. Install, seat and latch up logging assembly in 3 1/2" drill pipe. Make up to first joint of 5" HWDP. Run shuttle logging assembly in hole to 182'. Check pressure and flow parameters through tool assembly. Run shuttle logging assembly on 5" HWDP in hole to 836'. Continue running shuttle in hole on 5" drill pipe to 8266'. (Check pressure and flow parameters through tool assembly at 3900', 5900', 6690' and 8266' on way in, using staged 2,4 and 6 bpm flow rates, and blowing down lines before continuing to run in). Wash down from 8266' to 8313' (at 115spm, 225gpm, 1200psi). Circulate bottoms up and continue to clean and condition hole. Record 103 units of trip gas. Pull up hole to 8195'. Drop and pump down Messenger dart (at 128spm). Observed a normal pressure-up profile on the anticipated stroke counts to demonstrate that the Messenger had engaged the top of the inner string, sheared out the seating pins, released the tools from the outer string and pushed the logging assembly out to a full deployment at 8300'. Reduced pump rate (to 42spm, 390psi) as tools were being deployed. Cease circulating. Check for flow. Pump dry job. Pull out of hole at controlled 30' per minute rate, logging up with Quad-Combo assembly from 8300' to 3600'. Pull out of hole at normal rate from 3600' to surface. Pull shuttle assembly out of hole to top of 5" HWDP. Pull and stand back HWDP to top of shuttle. Break and lay down 3 1/2" drill pipe. Remove neutron sources. Break, lay down and load off Quad-Combo logging tools and shuttle running equipment (upper and lower latches, float, CLS, stabilizer, reamer). Clear and clean rig floor. 02/06/2008: Change out bails and elevators to run 4 1/2" casing. Hold pre job meeting on procedures and safety for running casing. Run in hole with 4 1/2" casing (open ended) to 3902'. Circulate casing volume. Record 14 units maximum gas. Blow down all mud lines, pumps and Topdrive. Install man-rider control panel in derrick. Continue running in hole with 4 1/2" casing from 3902' to 6772'. Rig up swedge and circulate bottoms up (at 110spm, 480psi). Record 24 units of trip gas. Blow down all mud lines. Hold pre-job meeting with Weatherford on procedures and safety for handling Wireline logging tools. Pick up and make up Weatherford Wireline Services' MFT logging assembly and run in hole. Continue running MFT Wireline logging assembly in hole and tag bridge at 7791'. Try to work down past, but unable to get past bridge after several attempts. Pull assembly up hole. Log out taking pressure points from 7632' to 6911'. Pull out of hole with MFT assembly. Handle, break and lay down logging assembly. Rig down Wireline running equipment and sheaves. Clear and clean rig floor. Prepare tools and rig up to pick up and run in with 4 1/2" casing. 02/07/2008: Hold pre-job meeting with Weatherford casing hands on procedures and safety for running 4 1/2" casing. Pick up and run in hole with 4 1/2" casing from 6772' to 8130'. Rig up swedge and circulate bottoms up. Record 68 units of wiper gas. Continue (another bottoms up) to circulate hole clean. Rig down swedge. Pull out of hole laying down 4 1/2" casing from 8130' to 7880'. Hold pre-job meeting with Weatherford Wireline hands on procedures and safety for handling Wireline logging tools. Pick up Weatherford Wireline Services' MFT logging assembly and run in hole inside the 4 1/2" casing. Continue running MFT Wireline logging assembly in hole and hit stopping point at the bottom of casing string (7780'). Unable to get past 7780' after several attempts. Secure pack-off and circulate past logging assembly to lubricate and provide an assist in pushing past the apparent obstruction at the bottom of the casing. Still unable to move MFT assembly past the stopping point at 7780'. Pull out of hole with MFT assembly. Handle, break and lay down logging assembly. Rig down Wireline running equipment and sheaves. Clear and clean rig floor. Prepare to lay down casing. Hold pre job meeting with Weatherford and Unique casing hands on procedures and safety for pulling 4 1/2" casing. Pull first 7 joints out of hole laying down 4 1/2" casing from 7880' to 7580'. Pump dry job. Continue pulling out of hole laying down casing from 7580' to surface. Rabbit through last joints to check clearance. Break and lay down mule shoe. Slight indentation in bottom rim of mule shoe but did not appear significant enough to have prevented MFT tools from sliding past. Pick up and make up new mule shoe on first joint of casing. Pick up, make up and run in hole from surface to 744' with 4 1/2" casing. • EPOCH 20 ~M MARATHON OIL COMPANY PAXTON 2 02/08/2008: Pick up, make up and run 4 1/2" casing in hole from 744' to 5822' with 4 1/2" casing. Briefly break circulation. Blow down mud lines. Continue to pick up, make up and run 4 1/2" casing in hole from 5822' to 8130'. Circulate bottoms up and circulate hole clean at 8130'. Record 55 units of trip gas. Pull out of hole from 8130' to 7883'. Hold pre-job meeting with Weatherford Wireline Services' loggers on procedures and safety for handling wireline logging tools. Hang sheaves and rig up Weatherford's wireline running equipment. Pick up, make up and run in hole MFT logging assembly inside the 4 1/2" casing. Continue running in MFT wireline logging assembly in hole to 8156'. Log up with formation tester, taking pressure points from 8130' to7903'. Pull out of hole with MFT assembly. Handle and lay down logging assembly. Rig down wireline running equipment and sheaves. Clear and clean rig floor. Prepare to lay down casing. Hold pre-job meeting with Weatherford and Unique casing hands on procedures and safety for pulling 4 1/2" casing. Check for flow. Pump dry job. Blow down mud lines. Pull out of hole laying down 4 1/2" casing from 7883' to 3969'. Hold pre-job meeting with WWS loggers on procedures and safety for handling wireline logging tools. Hang sheaves and rig up Weatherford's wireline running equipment. Pick up, make up and run in hole MFT logging assembly inside the 4 1/2" casing. Continue running in MFT wireline logging assembly in hole to 5741'. Log up with formation tester, taking pressure points from 5741' to 4315'. Continue logging up. 02/09/2008: Continue logging up with MFT formation tester, taking pressure points from 4315' to 4063'. Pull out of hole with MFT assembly. Handle, break and lay down MFT logging assembly. Rig down Weatherford Wireline Services' running equipment (entry guide, sheaves, securing shackles, lubricator, pack-off) and sheaves. Clear and clean rig floor. Prepare to lay down casing. Rig up and make up Weatherford casing handling tools. Install long bails and lay down line. Install casing elevators. Hold pre job meeting with Weatherford and Unique casing hands on procedures and safety for pulling 4 1/2" casing. Check for flow. Blow down mud lines. Pull out of hole laying down 4 1/2" casing from 3969' to surface. Break and lay down muleshoe. Rig down casing handling tools. Clear and clean rig floor. Change out bails and elevators, and rig up handling tools to run 4" drill pipe. Blow down steam system. Arrange portable heaters. Pull wear bushing. Set test joint. Rig up surface equipment to test BOPs. . Attempt first set of BOP tests but observe that some valves are frozen or potentially frozen. The frozen valves had resulted from a lack of steam heat after the boiler went down. Suspend BOP testing until freezing problems are remedied. Drain stack. Blow down choke manifold, choke lines, kill line. Re-blow down mud lines. Thaw frozen valves. Work on air slips. Clean rig floor. Fire boiler back up, vent out air trapped in steam lines and generate steam around rig. Re-rig surface equipment to test BOPS. Test all BOPE (annular, dart and floor valves, upper and lower Topdrive IBOPs, inside and outside kill valves, check valve, manual choke, HCR, upper pipe ram, lower pipe ram, blind ram, CMVs 1-12) to 250psi Low/2500psi High for 10 minutes. Do accumulator performance test (before last test group of lower pipe ram and blind ram). Test gas alarms. Blow down and rig down test equipment. Pull test joint. Install wear bushing. Clean rig floor. Prepare to pick up and make up clean out assembly (bit, bit sub, stabilizer, drill collars) for clean out run. 02/10/2008: Pick up, make up and run in hole clean out assembly (6 3/4"mill tooth bit, bit sub, stabilizer, four 4 3/4" drill collars, crossover) to 134'. Continue running in hole on 4" HWDP and 4" drill pipe to 3902'. Fill pipe and blow down mud lines. Continue running in hole from 3902' to 7676'. Wash and ream from 7676' to 8400'. Circulate bottoms up and circulate and condition hole. Record 174 units of trip gas. Check for flow. Pump dry job. Blow down mud lines. Pull out of hole with clean out assembly. (Pulled tight from 7884' to 7876'). Pull from 8400' to 806'. Pull from 806' to surface laying down HWDP, jars and clean out run assembly (crossover, drill collars, stabilizer, bit sub, bit). Change out saver sub and grabber dies. Pick up, make up and lay down cementing head. Clear and clean rig floor. Remove drill pipe elevators and short bails. Install long bails and 4 1/2" casing elevators. Pick up, install and rig up Weatherford casing running tongs, slips and handling tools. Rig up tall snub post. Install fill-up line, circulating line and 4 1/2" floor safety valve. Set returns to trip tank. Hold pre-job meeting with Weatherford hands on procedures and safety for running 4 1/2" liner. Linerjoints have been racked and tallied in the correct order on pipe racks. Run in hole 4 1/2" completion liner as per Marathon program. Pick up, clean threads, Bakerlok, make up and run in shoe tract to 87' and check floats. Continue running 4 1/2" liner in hole to 2399'. • EPOCH 21 ~M MARATHON OIL COMPANY PAXTON 2 02/11/2008: Continue running 4 1/2" liner in hole as per Marathon program from 2399' to 3888' (just inside shoe). Rig up swage to circulate through liner. Circulate 1414 strokes (65.89 bbls at 84spm, 260psi). Record 20 units of trip gas Blow down lines. Continue running 4 1/2" liner in hole from 3888' to 4669'. Make up circulating swage and circulate bottoms up. Record 20 units of trip gas. Continue to circulate and clean hole (8115 total strokes, 378.12 bbls, at 90spm, 310psi). Rig down Weatherford casing running equipment. Change out bails and elevators to handle 4" drill pipe. Clear and clean rig floor. Pick up and make up liner hanger. Run the 4 1/2" liner section in the hole on 4" drill pipe to 6504'. Fill pipe (441 strokes) Continue running liner on 4"drill pipe to 7222'. Circulate 3061 strokes (143.00 bbls, at 82spm, 340psi). Record 22 units maximum gas. Continue running liner on 4" drill pipe to 8386'. (Work past tight spots at 7844' and 8336' to 8348'). Circulate bottoms up. Record 42 units of trip gas. Continue to circulate and clean well. Install Baker cementing head and lines. Head has plug installed and wash up tee. BJ begins bulk mixing cement (200+ bbls) in pods. Continue to circulate and clean well (for 11814 strokes total, 550.48 bbls, at 71-91spm, 356-751 psi). Switch from rig pumps to BJ pumping unit and cement lines Pump 3.1 bbls of water and pressure test lines to 4415psi. Mix and pump 20.0 bbls of MCS- 4 10.Oppg sweep (using 19.09 bbls of mix water), and follow with 210.0 bbls of 10.5ppg cement slurry (395 sacks of Class G cement plus accelerator chemicals mixed with 116 bbls water for 12.361 gal/sk to yield 2.987 cuft/sk). (Note: shut down at 130 total bbls pumped to reprime missing pump and then restart pumping of slurry). Close valve to head and open up wash-up valve. Pump 12.6 bbls water until returns are clean. Close wash-up valve and open to head. Drop plug and pump out with 6.4 bbls of water. Displace cement with 100.0 bbls of 6% KCL fluid plus 18.6 bbls of water at a normal rate of 4-5bpm (for a total displacement of 125.0 bbls, including shoe joint of 1.2 bbls). Slow pump rate to 1-2 bpm after 36.5 bbls to see the pickup of liner plug at 43.6 bbls and then pump at normal rate till slowing one last time to 1 bpm at 125 total bbls to bump plug. Continue to pressure up past expected bump pressure and determine plug bumped at 2055psi. Note that plug bump was not immediately detected, so continued to pressure up to 2659psi total with an additional 6.0 bbls of water pumped (to 131.0 bbls total). Bleed off and check floats. Pressure up to release and set hanger and do not detect release at anticipated 1700psi. Continue to pressure up to 3011 psi without release. Bleed all the way back and pressure up second time to 3505psi without detectable results. Again bleed all the way back and pressure up for third time to 4026 psi without detectable results. Bleed all the way back and rig up to perform a mechanical release. Slack off with liner at 8385', work left hand rotation into the drill string as per Baker to activate secondary release mechanism, pressure up to 294psi and successfully release and pull out of liner hanger and seal assembly. Bleed off after unstinging from hanger. Clear cementing lines. Briefly organize rig floor. Switch back to rig pumps. Circulate out. Record 14 units maximum gas. Return contaminated MCS-4 sweep and an estimated 25 bbls of cement to surface. Continue to circulate (7390 strokes total, at 150spm, 610psi). Rig down and lay down cementing head. Make drill pipe up to Topdrive. Pump dry job. Blow down lines. Pull out of hole from 8385' laying down 4" drill pipe. Handle, break and lay down running tool at surface. 02/12/2008: Finish laying down running tool. Continue waiting on cement. Pick up, break and lay down cementing head. Spray and flush BOPs. Blow down all mud lines, choke and kill lines and choke manifold. Service carrier, Topdrive, blocks, crown and pipe spinner. Clean out trip tank and cellar. Clean out mud dump lines. Haul off all surface mud. Begin cleaning pits. Install guard on Topdrive gooseneck. Remove snow and ice from work areas around rig. Work on manriders. Adjust kick rollers. Tighten all brake block bolts. Prep #3 mud pump to be taken off line. Finish cleaning pits. Mix 200 bbls of 6% KCL brine. Change hoses on elevators. Remove, re-plumb and rebuild old hydraulic line hoses for the manriders. Pick up and make up polish mill assembly and run in hole to 3412'. Continue waiting on cement. Run in hole and tag top of 4 1/2" liner at 3685'. Polish liner top (to 3686') and clean out receptacle. Circulate bottoms up and circulate clean. Record 5 units of trip gas in casing. Check for flow. Mix and pump dry job. Blow down mudlines. Pull out of hole with 4" drill pipe and polish mill assembly. Lay down cross-over mills. Hold pre job meeting on safety and procedures for running and setting packer. Pick up and make up tie-back assembly (with liner-top ZXP packer). Run in hole with packer on tie-back seal running tool. Locate liner top at 3685'. • ~ EPOCH 22 '"M MARATHON OIL COMPANY PAXTON 2 02/13/2008: Rig up BJ cementers to set packer. Test lines, seals and liner cap to 5000psi for 5 minutes. Bleed off pressure and prepare to set liner tie-back packer. Position top of packer at 3667'. Drop setting ball. Wait 12 minutes. Pump and pressure up and shear rupture disk at 4500psi to set packer. Release from liner tie-back. Had good indications that the packer was set at 4000psi. Pump dry job. Pull out of hole laying down 4" drill pipe to 2243'. Test seal on 4 1/2" liner to 1500psi for 30 minutes. Blow down mud lines. Continue pulling out of hole laying down 4" drill pipe. Make service breaks on tie-back seal running tool and lay down. Clean and clear rig floor. Pull wear ring. Lay down all pipe handling tools. Change bails and elevators. Secure rig tongs and pipe spinner. Rig up Weatherford to run 4 1/2" tubing. Drift stack with tubing hanger. Tie back tugger. Hold pre-job meeting on procedures and safety for running tubing. Pick up and make up seal assembly for 4 1/2" tubing. Run 4 1/2" tubing in hole as per Marathon's program to 1241.51'. Rig up Pollard Oilfield Service to do banding of control line. Hang sheave for running chemical injection line. Rig up control line. Make up injection mandrel and attach and test line. Continue running in 4 1/2" tubing from 1241' to 3667'. Lay down 2 joints. Pick up and make up pups reach bottom of seal bore receptacle (at 3674'). Sting into top of the packer seal bore (at 3667') and space out. Pull back out to 3660'. Record up weight and down weight. Install landing joint and make up with Hydra-tongs. Make up circulating head to top of landing joint. Make up lines for displacing to circulating swage. Rig down Pollard banding equipment. Run injection line through hanger and then cut and tie off. Rig down and load off Weatherford hydraulic tongs, power slips and other tubing-casing handling equipment and tools. Load remaining equipment off of rig floor. Begin circulating to displace well. (Calculated displacement volume is 152 bbls). Pump 26 bbls of Safe Clean spacer, then follow with with 175 bbls of completion fluid (6% KCL brine mixed with Conqor 303 rust inhibitor and SMB). Pump 201 total bbls. Sting back into packer to base of seal bore receptacle and land and set hanger. Pump 6 strokes to pressure up and test packer seal to 500psi for 10 minutes. Test hanger body seals to 5000psi for 10 minutes. Blow down and rig down lines. Back out and lay down hanger landing tool. Rig down and lay down sheave for running chemical injection line and spool back unused line. Lay down elevators and long bails. Clear rig floor. Flush and blow down choke manifold. Set BPV. Lay down mousehole. Change out BOP rams from 4" to 5" and function test. Flush and blow down all remaining surface • equipment (mud pumps, stack, choke and kill lines, cementing lines, Topdrive, poorboy, stand pipe manifold and lines to pits). 02/14/2008: Rig down drip pan, turnbuckles, fill-up line, trip tank line, flowline, and choke and kill lines. Nipple down check and kill valves, spacer spool, BOP stack, and DSA. Load off BOP stack. Clean and inspect gas buster. Haul off excess fluid. Clean pits and sump. Prepare and install the tree. Remove BPV. Install 2-way check valve. Test void to 5000psi for 10 minutes. Test tree to 5000psi for 10 minutes. Pull 2-way check valve and reinstall BPV. Begin rig down of all Glacier No.1 rig components for move to Grassim Oskolkoff #7. Craig Silva finishes rigging down the Rigwatch 8.7 system at Glacier No.1, the gas system, all of Epoch Unit #6's computers and internal equipment, the work station in Unit #6, all the camp computers, the wireless network to camp, the Starband Satellite system, the on site rig communications and unit power. Unit #6 is organized and secured for moving to the Grassim Oskolkoff Pad. I~ ~I ~~ EPOCH 23 M MARATHON OIL COMPANY PAXTON 2 4.2. SURVEY RECORD Measured Depth Inclination Azimuth TVD Vertical Section Rectangular Coordinate (+) N/S (-) Rectangular Coordinate (+) E/W (-) Closure Closure Azimuth DLS ft de de ft ft ft ft ft de de /100 ft 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 170 0.30 230.27 170.00 0.00 -0.28 -0.34 0.45 0.00 0.18 249 0.71 255.87 249.00 -0.72 -0.54 -0.98 1.11 241.22 0.58 309 0.44 216.36 308.99 -1.09 -0.81 -1.47 1.68 241.12 0.77 368 1.53 81.45 367.99 -1.03 -0.88 -0.83 1.21 223.34 3.16 428 4.33 75.76 427.90 0.24 -0.20 2.16 2.17 95.33 4.69 487 6.73 68.51 486.62 3.11 1.61 7.54 7.71 77.92 4.23 548 8.19 59.56 547.11 7.98 5.12 14.61 15.48 70.67 3.05 608 9.87 49.93 606.37 14.89 10.60 22.23 24.63 64.51 3.76 668 11.83 39.29 665.30 24.38 18.67 30.06 35.39 58.15 4.66 727 14.43 30.41 722.76 36.71 29.70 37.61 47.92 51.71 5.57 787 16.94 22.38 780.52 52.38 44.23 44.73 62.90 45.32 5.52 851 19.31 17.98 841.35 72.07 62.92 51.55 81.34 39.33 4.27 914 21.40 15.62 900.41 93.89 83.90 57.86 101.91 34.59 3.56 977 24.12 13.83 958.50 118.22 107.47 64.03 125.10 30.79 4.45 1040 26.63 13.84 1015.42 145.20 133.69 70.49 151.13 27.80 3.98 1103 29.47 13.03 1071.01 174.81 162.50 77.36 179.97 25.46 4.55 1167 32.91 11.58 1125.75 207.95 194.88 84.40 212.37 23.42 5.50 1230 35.09 10.73 1177.98 243.17 229.44 91.21 246.91 21.68 3.54 1293 37.30 10.18 1228.82 280.36 266.03 97.95 283.49 20.21 3.55 1357 37.37 10.54 1279.70 319.17 304.21 104.93 321.80 19.03 0.36 1420 37.67 10.92 1329.67 357.53 341.91 112.08 359.81 18.15 0.60 1483 36.86 9.30 1379.81 395.66 379.46 118.78 397.61 17.38 2.02 1547 36.66 8.80 1431.09 433.92 417.28 124.80 435.54 16.65 0.56 1575 36.64 8.11 1453.55 450.61 433.81 127.26 452.09 16.35 1.47 1648 37.00 7.99 1511.99 494.27 477.13 133.39 495.42 15.62 0.50 ~~ EPOCH 24 M • """"TM°" MARATHON OIL COMPANY PAXTON 2 • Measured Depth Inclination Azimuth TVD Vertical Section Rectangular Coordinate (+) N/S (-) Rectangular Coordinate (+) E/W (-) Closure Closure Azimuth DLS ft) de de (ft ft ft ft ft) de (de /100 ft ) 1710 36.84 8.38 1561.56 531.44 513.99 138.69 532.38 15.10 0.46 1773 37.54 9.04 1611.64 569.47 551.63 144.46 570.24 14.67 1.28 1836 37.72 9.22 1661.64 607.89 589.61 150.56 608.53 14.32 0.33 1899 37.60 9.57 1711.51 646.35 627.59 156.84 646.89 14.03 0.39 1963 37.63 10.11 1762.21 685.40 666.07 163.52 685.85 13.79 0.52 2025 37.39 10.16 1811.39 723.13 703.24 170.16 723.53 13.60 0.39 2088 37.27 10.12 1861.48 761.32 740.84 176.89 761.67 13.43 0.19 2152 38.16 10.13 1912.11 800.46 779.39 183.77 800.76 13.27 1.39 2214 38.19 9.48 1960.85 838.76 817.15 190.30 839.01 13.11 0.65 2278 38.13 9.83 2011.17 878.27 856.13 196.93 878.49 12.95 0.35 2341 38.70 9.90 2060.54 917.40 894.69 203.64 917.58 12.82 0.91 2404 38.47 9.59 2109.78 956.67 933.42 210.29 956.81 12.70 0.48 2467 38.31 9.88 2159.16 995.77 971.98 216.90 995.89 12.58 0.38 2530 38.15 10.14 2208.65 1034.74 1010.37 223.68 1034.83 12.48 0.36 2593 37.86 10.07 2258.29 1073.51 1048.56 230.48 1073.59 12.40 0.47 2656 37.69 9.72 2308.09 1112.09 1086.58 237.12 1112.15 12.31 0.43 2719 36.62 10.59 2358.30 1150.12 1124.03 243.82 1150.17 12.24 1.89 2783 34.77 10.33 2410.27 1187.45 1160.75 250.60 1187.49 12.18 2.90 2846 33.62 10.59 2462.38 1222.85 1195.57 257.03 1222.88 12.13 1.84 2909 32.30 10.05 2515.24 1257.11 1229.29 263.17 1257.14 12.08 2.15 2972 30.72 10.47 2568.95 1290.03 1261.69 269.03 1290.05 12.04 2.53 3035 28.78 11.55 2623.64 1321.29 1292.37 275.00 1321.31 12.01 3.19 3099 27.01 11.36 2680.21 1351.23 1321.72 280.94 1351.25 12.00 2.77 3162 25.29 11.27 2736.75 1378.99 1348.94 286.39 1379.01 11.99 2.73 3225 23.19 10.23 2794.20 1404.85 1374.35 291.22 1404.87 11.96 3.40 3288 20.72 11.02 2852.62 1428.40 1397.50 295.56 1428.41 11.94 3.95 3352 18.74 11.24 2912.86 1450.00 1418.70 299.73 1450.01 11.93 3.10 3415 16.71 9.76 2972.87 1469.18 1437.55 303.24 1469.19 11.91 3.30 3476 14.96 8.77 3031.55 1485.80 1453.98 305.92 1485.81 11.88 2.90 EPOCH 25 M '~~'"°" MARATHON OIL COMPANY PAXTON 2 • Measured Depth Inclination Azimuth TVD Vertical Section Rectangular Coordinate (+) N/S (-) Rectangular Coordinate (+) E/W (-) Closure Closure Azimuth DLS (ft (de ) (de ) (ft) (ft (ft) (ft) (ft) (de ) (de /100ft) 3540 12.45 8.37 3093.73 1500.94 1468.97 308.19 1500.95 11.85 3.92 3603 10.18 7.41 3155.50 1513.28 1481.21 309.89 1513.28 11.82 3.62 3666 8.24 11.64 3217.68 1523.34 1491.15 311.52 1523.35 11.80 3.26 3730 6.16 14.80 3281.18 1531.36 1498.97 313.33 1531.36 11.81 3.31 3793 3.82 16.26 3343.93 1536.83 1504.25 314.78 1536.83 11.82 3.72 3867 1.51 12.48 3417.85 1540.26 1507.57 315.68 1540.26 11.83 3.13 3964 0.45 36.65 3514.83 1541.88 1509.12 316.18 1541.89 11.83 1.15 4026 0.50 39.62 3576.83 1542.34 1509.53 316.50 1542.35 11.84 0.09 4090 0.55 41.36 3640.83 1542.86 1509.97 316.88 1542.86 11.85 0.08 4153 0.55 36.10 3703.82 1543.40 1510.44 317.26 1543.40 11.86 0.08 4216 0.59 31.05 3766.82 1543.98 1510.96 317.60 1543.98 11.87 0.10 4279 0.54 20.43 3829.82 1544.58 1511.52 317.87 1544.58 11.88 0.18 4342 0.56 26.00 3892.81 1545.17 1512.08 318.11 1545.18 11.88 0.09 4405 0.63 25.20 3955.81 1545.80 1512.67 318.40 1545.81 11.89 0.11 4468 0.63 25.21 4018.81 1546.48 1513.29 318.69 1546.49 11.89 0.00 4531 0.71 16.20 4081.80 1547.20 1513.98 318.95 1547.21 11.90 0.21 4594 0.80 8.48 4144.80 1548.03 1514.79 319.12 1548.04 11.90 0.22 4657 0.74 8.04 4207.79 1548.88 1515.63 319.24 1548.88 11.89 0.10 4719 0.71 1.78 4269.79 1549.65 1516.41 319.31 1549.66 11.89 0.14 4783 0.89 7.45 4333.78 1550.54 1517.30 319.39 1550.55 11.89 0.31 4846 0.67 7.61 4396.78 1551.40 1518.15 319.50 1551.40 11.88 0.35 4909 0.74 7.60 4459.77 1552.17 1518.92 319.60 1552.18 11.88 0.11 4972 0.73 8.78 4522.77 1552.98 1519.72 319.72 1552.98 11.88 0.03 5035 0.72 7.53 4585.76 1553.77 1520.51 319.83 1553.78 11.88 0.03 5098 0.78 8.33 4648.75 1554.59 1521.32 319.94 1554.60 11.88 0.10 5161 0.90 354.49 4711.75 1555.49 1522.24 319.96 1555.50 11.87 0.37 5225 0.88 355.77 4775.74 1556.45 1523.23 319.87 1556.45 11.86 0.04 5288 0.91 359.43 4838.73 1557.40 1524.21 319.83 1557.41 11.85 0.10 5352 1.09 0.83 4902.72 1558.50 1525.33 319.84 1558.50 11.84 0.28 ~~ EPOCH-I 26 M """"TM°" MARATHON OIL COMPANY PAXTON 2 Measured Depth Inclination Azimuth ~/p Vertical Section Rectangular Coordinate (+) N/S (-) Rectangular Coordinate (+) E/W (-) Closure Closure Azimuth DLS (ft) (de ) (de ) (ft) (ft) (ft) (ft) (ft) (deg) (deg/100 ft) 5414 0.77 357.95 4964.71 1559.48 1526.33 319.83 1559.48 11.83 0.52 5476 0.57 355.81 5026.71 1560.18 1527.06 319.79 1560.18 11.83 0.33 5540 0.69 2.15 5090.71 1560.87 1527.76 319.78 1560.87 11.82 0.22 5602 0.76 2.53 5152.70 1561.64 1528.55 319.82 1561.64 11.82 0.11 5666 0.89 4.38 5216.69 1562.55 1529.46 319.87 1562.56 11.81 0.21 5729 0.87 8.53 5279.69 1563.52 1530.43 319.98 1563.52 11.81 0.11 5791 0.98 4.91 5341.68 1564.51 1531.42 320.10 1564.51 11.81 0.20 5854 1.08 8.24 5404.67 1565.64 1532.54 320.23 1565.64 11.80 0.18 5918 1.17 14.29 5468.66 1566.89 1533.77 320.48 1566.90 11.80 0.23 5982 1.34 10.46 5532.64 1568.30 1535.14 320.77 1568.30 11.80 0.30 6043 1.49 14.70 5593.62 1569.80 1536.61 321.10 1569.80 11.80 0.30 6108 1.79 16.80 5658.60 1571.66 1538.40 321.61 1571.66 11.81. 0.47 6171 1.82 17.29 5721.56 1573.63 1540.30 322.19 1573.63 11.81 0.05 6234 2.06 20.78 5784.53 1575.75 1542.31 322.89 1575.75 11.82 0.42 6296 2.20 20.27 5846.49 1578.02 1544.47 323.70 1578.03 11.84 0.23 6359 2.37 23.34 5909.44 1580.49 1546.80 324.63 1580.50 11.85 0.33 6423 2.48 26.67 5973.38 1583.13 1549.25 325.78 1583.13 11.88 0.28 6486 2.48 29.48 6036.32 1585.74 1551.65 327.06 1585.75 11.90 0.19 6548 2.55 26.49 6098.26 1588.34 1554.05 328.33 1588.36 11.93 0.25 6611 2.49 24.05 6161.20 1591.03 1556.55 329.52 1591.05 11.95 0.20 6673 2.42 30.43 6223.14 1593.59 1558.91 330.73 1593.61 11.98 0.45 6735 2.59 34.54 6285.08 1596.12 1561.19 332.19 1596.14 12.01 0.40 6799 2.49 38.20 6349.02 1598.70 1563.48 333.86 1598.73 12.05 0.30 6862 2.39 40.96 6411.96 1601.07 1565.55 335.57 1601.11 12.10 0.24 6925 2.55 42.36 6474.90 1603.42 1567.57 337.38 1603.47 12.15 0.27 6988 2.47 46.24 6537.84 1605.74 1569.55 339.30 1605.80 12.20 0.30 7050 2.34 45.86 6599.79 1607.89 1571.35 341.18 1607.97 12.25 0.21 7116 2.31 46.13 6665.73 1610.10 1573.21 343.10 1610.19 12.30 0.05 EPQCH 27 M 1NAR°TM°" MARATHON OIL COMPANY PAXTON 2 • Measured Depth Inclination Azimuth TVD Vertical Section Rectangular Coordinate (+) N/S (-) Rectangular Coordinate (+) E/W (-) Closure Closure Azimuth DLS (ft) (de ) (de ) (ft) (ft) (ft) (ft) (ft) (de ) (deg/100 ft) 7178 2.34 46.47 6727.68 1612.17 1574.95 344.92 1612.28 12.35 0.05 7241 2.47 46.63 6790.63 1614.34 1576.77 346.84 1614.47 12.41 0.21 7302 2.33 45.56 6851.57 1616.45 1578.54 348.68 1616.59 12.46 0.24 7366 2.36 45.13 6915.52 1618.63 1580.38 350.54 1618.79 12.51 0.05 7428 2.20 46.33 6977.47 1620.67 1582.10 352.31 1620.85 12.55 0.27 7493 2.20 50.60 7042.42 1622.67 1583.76 354.17 1622.88 12.61 0.25 7556 2.24 50.78 7105.38 1624.57 1585.30 356.06 1624.80 12.66 0.06 7618 2.40 53.43 7167.33 1626.48 1586.84 358.04 1626.73 12.71 0.31 7681 2.34 54.13 7230.27 1628.41 1588.38 360.15 1628.70 12.78 0.11 7744 2.31 54.80 7293.22 1630.29 1589.87 362.23 1630.61 12.83 0.06 " 707 _ ___-- - 2.36 54.64 7356.17 1632.17 1591.35 364.32 1632.52 12.89 0.08 7871 2.26 52.56 7420.12 1634.08 1592.88 366.40. 1634.48 12.95 0.20 7934 2.26 47.79 7483.07 1636.03 1594.47 368.30 1636.45 13.01 0.30 7996 2.28 44.55 7545.02 1638.05 1596.17 370.07 1638.51 13.05 0.21 8060 2.39 42.31 7608.96 1640.27 1598.06 371.87 1640.76 13.10 0.22 8122 2.37 44.50 7670.91 1642.46 1599.93 373.63 1642.98 13.14 0.15 8187 2.19 44.60 7735.86 1644.63 1601.78 375.45 1645.19 13.19 0.28 8250 1.91 45.94 7798.82 1646.51 1603.36 377.05 1647.10 13.23 0.45 8312 2.30 45.98 7860.78 1648.39 1604.95 378.69 1649.02 13.28 0.63 8375 1.84 48.56 7923.74 1650.25 1606.49 380.35 1650.91 13.32 0.74 8436** 1.84 48.56 7984.70 1651.81 1607.79 381.82 1652.51 13.36 0.00 **Projected ~~ EPOCH 2s M """"TM°" MARATHON OIL COMPANY PAXTON 2 4.3. MUD RECORD Contractor: MI Drilling Fluids Mud Types: Spud Mud 135' - 1630'; 6% KCI Flo-Pro NT 1630' - 8436 • DATE MD / TVD MW VIS PV YP GELS FL FC SOL OIL/H20 SD MBT pH Alk CI- Ca+ 1/17/08 135 / 135 8.6 60 13 42 14/18/ 15.6 2 2.5 0/98 0.0 25.0 8.8 0.00 800 40 1/18/08 227 / 227 8.8 53 12 27 14/24/27 13.6 2 4.0 0/96 0.33 25.0 8.7 0.10 500 40 1/19/08 1100 / 1068 9.1 61 14 24 15/28/31 12.8 2 4.5 0/96 0.33 27.5 8.6 0.10 400 40 1/19/08 1630 / 1498 9.6 51 14 20 12/18/21 8.4 2 9.0 0/93 0.33 25.0 8.6 0.10 300 40 1/20/08 1630 / 1498 9.6 47 13 20 10/19/ 8.4 2 8.0 0/92 0.33 25.0 8.5 0.10 300 40 1 /21 /08 1630 / 1498 9.2 47 7 22 7/9/10 8.8 1 4.0 0/96 0.0 0.0 8.5 0.15 32000 80 1/22/08 1691 / 1546 9.2 50 8 22 7/10/ 7.6 1 4.0 0/96 0.0 0.0 9.4 0.45 33000 80 1 /23/08 2265 / 2001 9.4 48 12 15 7/9/ 6.4 1 5.5 0/95 0.5 3.5 10.0 0.25 29500 80 1 /23/08 2834 / 2452 9.3 45 11 13 7/9/ 6.8 1 5.0 0/95 0.2 3.5 10.0 0.35 31500 80 1 /24/08 3396 / 2955 9.5 47 11 19 8/14/ 6.0 1 6.0 1 /93 0.2 4.5 10.0 0.40 31000 60 1 /24/08 3831 / 3382 9.5 47 12 21 11 /18/ 6.0 1 6.0 1 /93 0.15 4.5 9.7 0.25 28500 . 60 1/25/08 3919 / 3470 9.6 45 11 17 8/14/ 6.6 1 7.0 1/92 Tr 5.0 9.5 0.20 28000 80 1/25/08 3919 / 3470 9.6 45 11 15 6/13/ 6.6 2 6.5 1/93 Tr 5.0 9.8 0.25 29000 80 1/26/08 3919 / 3470 9.6 45 11 15 6/13/ 6.6 2 6.5 1/93 Tr 5.0 9.8 0.25 29000 80 1 /27/08 3919 / 3470 9.6 45 11 15 6/13/ 6.6 2 6.5 1 /93 Tr 5.0 9.8 0.25 29000 80 1/28/08 3919 / 3470 9.6 45 11 15 6/13/ 6.6 2 6.5 1/93 Tr 5.0 9.8 0.25 29000 80 1 /28/08 3919 / 3470 9.1 45 7 13 7/9/ 6.2 1 3.0 0/97 0.0 0.0 9.5 0.20 29500 80 1/29/08 4497 / 4048 9.2 45 9 19 10/12/ 5.6 1 4.0 0/96 0.25 3.5 9.6 0.20 31500 80 1/29/08 5059 / 4610 9.4 47 11 20 10/14/ 5.6 1 5.0 0/95 0.25 4.5 9.8 0.30 30000 80 1/30/08 5545 / 5096 9.2 45 9 18 10/14/ 5.7 1 4.0 0/96 0.1 3.5 10.2 0.40 30500 80 1 /30/08 5900 / 5451 9.3 44 10 21 11 /15/ 5.0 1 4.5 1 /95 0.15 3.75 9.2 0.20 31000 80 1 /31 /08 6435 / 5985 9.3 44 9 22 11 /16/ 5.3 2 4.5 1 /95 Tr 3.75 9.7 0.30 31000 80 1 /31 /08 7080 / 6630 9.2 45 10 22 11 /16/18 5.1 1 4.5 1 /95 Tr 3.0 9.7 0.35 30000 80 2/1/08 7694 / 7243 9.2 43 9 24 11/15/ 4.8 1 4.5 2/94 Tr 2.5 9.5 0.35 31000 60 2/1/08 8162 / 7711 9.3 45 9 23 11/15/17 4.8 1 4.7 1/94 Tr 2.4 9.6 0.40 32000 80 ~~ EPOCH 29 s M • ~""""'°" MARATHON OIL COMPANY PAXTON 2 Contractor: MI Drilling Fluids Mud Type: 6% KCI Flo-Pro NT 1650' - 8436 • DATE MD / TVD MW VIS PV YP GELS FL FC SOL OIL/H20 SD MBT pH Alk CI- Ca+ 2/2/08 8436 / 7985 9.3 45 10 23 10/14/15 5.0 1 5.0 1/94 Tr 2.5 10.0 0.35 32000 80 2/2/08 8436 / 7985 9.4 44 9 24 10/14/16 4.8 1 6.0 1/93 Tr 2.5 10.0 0.40 31000 80 2/3/08 8436 / 7985 9.4 46 10 23 10/15/16 4.8 1 6.0 1/93 Tr 2.5 9.8 0.35 31000 80 2/3/08 8436 / 7985 9.5 46 10 22 10/14/15 4.8 1 6.5 1/92 Tr 2.5 9.9 0.40 31000 80 2/4/08 8436 / 7985 9.5 47 11 21 10/15/16 5.0 1 6.5 1/93 Tr 2.5 9.8 0.40 31000 60 2/4/08 8436 / 7985 9.5 47 10 23 10/15/17 5.0 1 6.5 1/93 Tr 2.5 9.7 0.35 31000 80 2/5/08 8436 / 7985 9.5 48 9 22 9/13/14 5.2 1 6.5 1/93 Tr 2.5 9.7 0.35 30000 60 2/5/08 8436 / 7985 9.5 48 10 21 9/13/14 5.2 1 6.5 1/93 Tr 2.5 9.8 0.40 30000 60 2/6/08. 8436 / 7985 9.5 48 10 22 10/13/14 5.0 1 6.5 1/93 Tr 2.5 9.8 .0.40 30000 80 2/6/08 8436 / 7985 9.5 48 10 22 10/12/13 5.0 1 6.5 1 /93 Tr 2.5 9.7 0.35 30000 80 2/7/08 8436 / 7985 9.6 49 9 23 10/12/14 5.0 1 7.5 1 /92 Tr 4.0 9.9 0.45 28000 60 2/7/08 8436 / 7985 9.6 49 10 19 10/12/ 5.2 1 7.0 1/92 0.15 5.0 10.0 0.50 25000 60 2/8/09 8436 / 7985 9.5 48 10 19 10/12/ 5.2 1 7.0 1/92 0.15 5.0 10.0 0.50 25000 60 2/9/08 8436 / 7985 9.5 46 9 17 8/10/ 6.0 1 6.5 1/93 0.2 6.0 10.0 0.50 24000 60 2/10/08 8436 / 7985 9.5 46 9 17 8/10/ 6.0 1 6.5 1/93 0.2 6.0 10.0 0.50 24000 60 2/11 /08 8436 / 7985 9.6 43 8 19 7/9/ 6.5 1 6.5 1 /93 0.2 6.0 9.5 0.30 24500 80 2/12/08 3686 / 3237 9.6 43 8 19 7/9/ 6.4 2 6.5 1/93 0.2 6.0 9.5 0.30 24500 80 2/13/08 3686 / 3237 8.6 28 1 1 KCL Brine 8.3 31000 2/14/08 Surface 8.6 28 1 1 KCL Brine 8.3 31000 EPQ~H 30 M '""""'"°" MARATHON OIL COMPANY PAXTON 2 4.4. BIT RECORD BIT SIZE TYPE S/N JETS/ IN OUT FT HRS AVE WOB RPM PP Lo -Avg CONDITION NO. TFA ROP Lo -Avg - Hi - Hi 1 RR 16 0 HCC 60401717 3x18 ~ 135 225 90 3 88 48.9 0.7 - 3.3 - 51 290 - 357 - 1-1-WT-A-E-1-NO-BHA . MX-1 1 x16c . 6.0 739 2 13 5 HCC 5095626 3x18 ~ 225 1630 1405 82 16 101.0 0.9 - 9.5 - 73 405 - 1230 1-1-WT-A-E-1-NO-TD . MXL-1 1 x16c . 21.4 - 1632 3 9 875 HCC 7110659 6x12 1630 3919 2289 29 80 102.4 0.3 - 8.5 - 75 755 - 1143 1-1-WT-A-X-1-CT-TD . 5062 . 29.4 - 1537 3RR 875 9 HCC 7110659 6x12 3919 3919 0 n/a n/a n/a n/a n/a Clean out run only . 5062 1-1-WT-A-X-1-CT-TD 2 - 7 3 - 0 959 -1686 4 6.75 HCC 505X 7012959 5x11 3919 8436 4517 66.92 90.5 . . 21.4 77 - 2539 1-3-WT-A-X-1-CT-TD NG 5 6.75 HCC STX-1 5124225 3x20 8400 8400 0 n/a n/a n/a n/a n/a Clean out run onl EPOCH 31 0 W N DEPTH (FT) 1 /1 212 00 8 1 /13/2008 1 /14/2008 1 /15/2008 i 1 /16/2008 ~ ~ 1 /17/2008 1 /18/2008 1 /19/2008 1 /20/2008 I ,/z1/zoos I' I vz2/zoos 1 /23/2008 1 /za/zoos °y ~i 1/25/2008 N 1/26/2008 /27,2008 ITl /z8/2oo8 i _ /2s/zoos 1/30/2008 1 /31 /2008 2/1 /2008 2/z/2008 2/3/2008 2/4/2008 2/5/2008 2/6/2008 2/7/2008 ~ ~ I I 2/8/2008 Tl Tl i ~ CO ~ ~ 2/9/2008 ~ ~ W ~ ~ ~ N 2/10/2008 ~ ~vT} ~ 2/11/2008 ~ ~ ~ (~ 2/12/2008 2/13/2008 2/14/2008 ~P 0 ~3 D D Z r 0 D Z Z N Marathon Oil Company ~~~~ Ninilchik Unit DAILY WELLSITE REPORT Paxton 2 REPORT FOR Mitch Burns /Dan Byrd DATE Jan 17, 2008 DEPTH 135 PRESENT OPERATION Rigging up diverter line TIME 24:00 YESTERDAY 135 24 HOUR FOOTAGE 0 CASING INFORMATION 20" @ 135' SURVEY DATA DEPTH INCLINATION AZIMUTH VERTICAL DEPTH BIT INFORMATION INTERVAL CONDITION REASON NO. SIZE TYPE S/N JETS IN OUT FOOTAGE HOURS T/B/C PULLED DRILLING PARAMETERS HIGH LOW AVERAGE CURRENT AVG RATE OF PENETRATION @ @ FT/HR SURFACE TORQUE @ @ AMPS WEIGHT ON BIT @ @ KLBS ROTARY RPM @ @ RPM PUMP PRESSURE @ @ PSI DRILLING MUD REPORT DEPTH 135 / 135 TVD MW 8.6 VIS 60 PV 13 YP 42 FL 15.6 Gels 14/18/ CL- 800 FC 2 SOL 2.5 SD 0 OIL 0/98 MBL 25.0 pH 8.8 Ca+ 40 CCI MWD SUMMARY INTERVAL TO OLS AS SUMMARY (units) HIGH LOW AVERAGE DITCH GAS @ @ TRIP GAS CUTTING GAS @ @ WIPER GAS CHROMATOGRAPHY(ppm) SURVEY METHANE (C-1) @ @ CONNECTION GAS HIGH ETHANE (C-2) @ @ AVG PROPANE (C-3) @ @ CURRENT BUTANE (C-4) @ @ CURRENT BACKGROUND/AVG PENTANE (C-5) @ @ HYDROCARBON SHOWS INTERVAL LITHOLOGY/REMARKS GAS DESCRIPTION LITHOLOGY PRESENT LITHOLOGY Continuing Glacier No.1 rig up operations. Install T-bar and turnbuckles. Adjust torque tube. Rig up control and Gaitronics lines to pump #3. Pick up and hang Topdrive. Pick up and install slide. Rig up service loop and kelly hose. Repair air relief line on #1 carrier. Run Gaitronics line from camp to rig. Rig and install bails, elevators, rig tongs, pipe spinner and derrick board. Test run #1 DAILY and 32 mud pumps. Make cut on 20" conductor and dress stub. Install starter head and test to 300psi for 10 minutes. Install 4" ACTIVITY valve on starter head and weld nipple on conductor. Test gas alarms. Inspect accumulator bottles and replace as needed. Install SUMMARY 2" valve on conductor. Hold weekly safety with all personnel from both crews. Clear ice and snow on berm margins prior to tacking down the remaining loose Herculite in place on the top of berms. Function test Topdrive. Continue working on berms. Repair camp Gaitronics. Nipple up diverter. Install flow line adaptor and pitcher nipple. Change camlock on pitcher nipple. Begin mixing mud. Install kill line. Make up mud manifold. Install choke. bleeder and fill-up lines. Install knife valve. Lay out, setup and make up diverter line. Unload HWDP and various tools from trailers. Finish mixing mud. ~OCH PERSONNEL ON BOARD 2 DAILY COST ML: 2050 RW: 535 Rig up: 2125 REPORT BY Craig Silva Marathon Oil Company ~~~J~ Ninilchik Unit DAILY WELLSITE REPORT Paxton 2 REPORT FOR Mitch Burns /Dan Byrd DATE Jan 18, 2008 DEPTH 329 PRESENT OPERATION Drilling TIME 24:00 YESTERDAY 135 24 HOUR FOOTAGE 194 CASING INFORMATION 20" @ 135' DEPTH INCLINATION AZIMUTH VERTICAL DEPTH 170 0.30 230.27 170.00 SURVEY DATA 249 0.71 255.87 249.00 309 0.44 216.36 308.99 368 1.53 081.45 367.99 BIT INFORMATION INTERVAL CONDITION REASON NO. SIZE TYPE S/N JETS IN OUT FOOTAGE HOURS T/B/C PULLED 1RR 16.0 HTC MX-1 6040171 3x18, 1x16cj 135 225 90 3.88 1-1-WT-A-E-1-NO-BHA Change assembly 2 13.5 HTC MXL-1 5095626 3x18, txl6cj 225 104 1.49 In Hole DRILLING PARAMETERS HIGH LOW AVERAGE CURRENT AVG RATE OF PENETRATION 142.4 @ 305 5.2 @ 139 70.8 36.0 FT/HR SURFACE TORQUE 9565 @ 153 0 @ Sliding 4697.7 116.7 AMPS WEIGHT ON BIT 5 @ 194 0.8 @ 168 3.2 2.8 KLBS ROTARY RPM 57 @ 289 0 @ Sliding 53.0 53.0 RPM PUMP PRESSURE 904 @ 229 290 @ 136 516.1 624.0 PSI DRILLING MUD REPORT DEPTH 227 / 227 TVD MW 8.8 VIS 53 PV 12 YP 27 FL 13.6 Gels 14/24/27 CL- 500 FC 2 SOL 4.0 SD 0.33 OIL 0/96 MBL 25.0 pH 8.7 Ca+ 40 CCI MWD SUMMARY INTERVAL TO TOOLS SUMMARY (units) HIGH LOW AVERAGE ITCH GAS 3 @ 317 0 @ 164 1.6 TRIP GAS CUTTING GAS @ @ WIPER GAS CHROMATOGRAPHY(ppm) SURVEY METHANE (C-1) 764 @ 317 51 @ 164 327.1 CONNECTION GAS HIGH ETHANE (C-2) @ @ AVG PROPANE (C-3) @ @ CURRENT BUTANE (C-4) @ @ CURRENT BACKGROUND/AVG 1.5 / $.5 PENTANE (C-5) @ @ HYDROCARBON SHOWS INTERVAL LITHOLOGY/REMARKS GAS DESCRIPTION LITHOLOGY PRESENT LITHOLOGY Chain down diverter line. Rig up kill line and attach to conductor. Rig up manual trip tank gauge. Set pipe racks. Test diverter, stack and accumulator. Check flow line and pit sensors. Rig up to pick up drill pipe. Rack, tally, pick up, drift, make up and stand back 15 stands of 5" drill pipe and 10 stands of HWDP DAILY (plus jars). Pick up and make up short clean out assembly (16" bit, motor, stabilizer, pony collar, drill collars). Run in 20" conductor with HWDP and tag top of ACTIVITY fill at 77'. Clean out conductor from 77' to 135'. Drill out of conductor and Spud Well. Drill from 135' to 167'. Replace bolts on Topdrive and rewire its pipe SUMMARY guide. Drill from 167' to 225'. Circulate bottoms up. Circulate around Hi-Vis sweep. Repair hydraulics and restore throttle control of tugger controls located near v-door. Correct throttle installation error. Pull out of hole with clean out assembly and lay down bit. Blow down surface equipment. Pick up, make up, orient, scribe, downlink, program and run in hole directional BHA. Tag at 225' with no fill. Drill from 225' to 329'. EPOCH PERSONNEL ON BOARD 2 DAILY COST ML: 2050 RW: 535 REPORT BY Craig Silva • Marathon Oil Company NinilchikUnit DAILY WELLSITE REPORT ~,~~~,~~ Paxton 2 REPORT FOR Mitch Bu rns /Dan Byrd ATE Jan 19, 2008 DEPTH 1630 PRESENT OPERATION Circulating and conditioning hole before wiper trip TIME 24:00 YESTERDAY 329 24 HOUR FOOTAGE 1301 CASING INFORMATION 20" @ 135' DEPTH INCLINATION AZIMUTH VERTICAL DEPTH 428 4.33 075.76 427.90 727 14.43 030.41 722.76 SURVEY DATA 1040 26.63 013.84 1015.42 1293 37.30 010.18 1228.82 1575 36.64 008.11 1453.55 BIT INFORMATION INTERVAL CONDITION REASON NO. SIZE TYPE S/N JETS IN OUT FOOTAGE HOURS T/B/C PULLED 2 13.5 HTC MXL-1 5095626 3x18, 1x16cj 225 1630 1405 16.82 In Hole DRILLING PARAMETERS HIGH LOW AVERAGE CURRENT AVG RATE OF PENETRATION 161.8 @ 564 12.0 @ 1157 101.9 63.5 FT/HR SURFACE TORQUE 15473 @ 1600 0 @ Sliding 11151.7 11032.6 AMPS WEIGHT ON BIT 21 @ 1484 1 @ 831 10.0 11.4 KLBS ROTARY RPM 102 @ 716 0 @ Sliding 69.0 67.2 RPM PUMP PRESSURE 1632 @ 1598 690 @ 348 1275.9 1472.4 PSI DRILLING MUD REPORT DEPTH 1630 / 1498 TVD MW 9.6 VIS 51 PV 14 YP 20 FL 8.4 Gels 12/18/21 CL- 300 FC 2 SOL 9.0 SD 0.33 OIL 0/93 MBL 25.0 pH 8.6 Ca+ 40 CCI D SUMMARY INTERVAL TO TOOLS GAS SUMMARY (units) HIGH LOW AVERAGE DITCH GAS 150 @ 1627 1 @ 409 21.0 TRIP GAS CUTTING GAS @ @ WIPER GAS CHROMATOGRAPHY (ppm) SURVEY METHANE (C-1) 30086 @ 1627 263 @ 409 4203.0 CONNECTION GAS HIGH ETHANE (C-2) @ @ AVG PROPANE (C-3) @ @ CURRENT BUTANE (C-4) @ @ CURRENT BACKGROUND/AVG 22 / 85 PENTANE (C-5) @ @ HYDROCARBON SHOWS INTERVAL LITHOLOGY/REMARKS GAS DESCRIPTION LITHOLOGY PRESENT LITHOLOGY DAILY ACTIVITY Drill (rotating and sliding) from 329' to 1630'. Circulate bottoms up. Pump around 40 bbl Hi-Vis sweep. Continue to SUMMARY circulate and clean. EPOCH PERSONNEL ON BOARD 2 DAILY COST ML: 2050 RW: 535 REPORT BY Craig Silva • Marathon Oil Company Ninilchik Unit DAILY WELLSITE REPORT _ F,~~~,~ Paxton 2 REPORT FOR Mitch Burns /Dan Byrd DATE Jan 20, 2008 DEPTH 1630 PRESENT OPERATION Nippling down stack TIME 24:00 YESTERDAY 1630 24 HOUR FOOTAGE 0 CASING INFORMATION 10 3/4" @ 1616' DEPTH INCLINATION AZIMUTH VERTICAL DEPTH SURVEY DATA 1630 (Projection) 36.64 008.11 1497.68 BIT INFORMATION INTERVAL CONDITION REASON NO. SIZE TYPE S/N JETS IN OUT FOOTAGE HOURS T/B/C PULLED 2 13.5 HTC MXL-1 5095626 3x18, 1x16cj 225 1630 1405 16.82 1-1-WT-A-E-1-NO-TD Casing point DRILLING PARAMETERS HIGH LOW AVERAGE CURRENT AVG RATE OF PENETRATION @ @ FT/HR SURFACE TORQUE @ @ AMPS WEIGHT ON BIT @ @ KLBS ROTARY RPM @ @ RPM PUMP PRESSURE @ @ PSI DRILLING MUD REPORT DEPTH 1630 / 1498 TVD MW 9.6 VIS 47 PV 13 YP 20 FL 8.4 Gels 10/19/ CL- 300 FC 2 SOL 8.0 SD 0.33 OIL 0/92 MBL 25.0 pH 8.5 Ca+ 40 CCI MWD SUMMARY INTERVAL TO OLS AS SUMMARY (units) HIGH LOW AVERAGE DITCH GAS 114 @ WG at 1630 1 @ Displacing 29 before POH TRIP GAS CUTTING GAS @ @ WIPER GAS 114 CHROMATOGRAPHY(ppm) SURVEY METHANE (C-1) @ @ CONNECTION GAS HIGH ETHANE (C-2) @ @ AVG PROPANE (C-3) @ @ CURRENT BUTANE (C-4) @ @ CURRENT BACKGROUND/AVG 11 / 29 before POH PENTANE (C-5) @ @ HYDROCARBON SHOWS INTERVAL LITHOLOGY/REMARKS GAS DESCRIPTION LITHOLOGY PRESENT LITHOLOGY Finish circulating and conditioning. Check for flow. Pump dry job. Pull out of hole (SLM) to 181' (top of directional tools) on wiper trip. Run back in hole to 1599'. Wash down from 1599' to 1630' with no fill. Circulate bottoms up. Record 114 units of wiper gas. Pump around 40 bbl Hi-Vis sweep. Circulate hole clean. Check for flow. Pump dry job. Blow down lines. Pull out of hole (SLM with no correction) from 1630' to top of HWDP at 842'. Pull and stand back HWDP (plus jars) to 181' and then break and lay down directional assembly (shock sub, crossovers, flex joints, NM crossover, MWD tool, pony DC, stabilizer, motor, bit). Lay down bit handling tools. Clean and clear rig floor. Rig up to run casing. Readjust and reset Topdrive rail. Rig up stabbing board. Move break-out tongs to driller's side and install correct tong head. Change out double kelly valve. Install and make up Weatherford's Lafleur fill-up tool. Remove hydraulic elevators and short bails. Install long bails and pick up line. Install casing elevators. Arrange DAILY tugger lines for hanging casing tongs. Rig up Weatherford casing tongs and tall snub post. Remove rotary bushings. Install ACTIVITY Weatherford casing spider slips. Make up EZ-turn low torque valve onto casing swedge to act as a safety valve, then function test, SUMMARY record in IADC and leave in open position on the rig floor. Monitor trip tank. Stage centralizers on rig floor. Pre-clean casing threads on the shoe track joints. Hold pre-job meeting with all hands on procedures and safety for running surface casing string. Run in hole with 10 3/4" casing as per Marathon program. Pick up, make up and run in hole shoe track (shoe joint, spacer joint, float collar). Clean and Bakerlok casing threads on each successive joint while making up shoe track. Rig circulating tool and pump through to check floats. Continue to run in hole with 10 3/4" casing, filling each joint, and land casing at 1616.75'. Circulate and condition mud. Pick up and make up BJ cementing head with top and bottom plugs pre-installed. Rig up cementing lines. Hold pre-job meeting on safety and procedures for cement job. Continue to circulate and condition well (1 1/2 casing volumes). Pump 40 bbls of Mud Clean II with rig pumps. Switch to BJ cementing unit. Pump 4.60 bbls of water ahead and pressure test lines to 2746psi. Batch up cement. Drop 1st (bottom) plug and pump 208.0 bbls of 12.Oppg cement slurry (457 sacks Class G cement with 112.35 bbls of mix water and accelerator chemicals for 10.335 gal/sack yield). Drop 2nd (top) plug and kick out with 5.9 bbls of water. Displace with 163 bbls of 9.6ppg mud. Slow down pump rate before bumping. Bump plug on time with 1011 psi overpressure (1439 psi total). Bleed off and check floats. Floats held. Cement in place. Begin wait on cement. Clean cellar. Flush and wash-up all rig cementing and flow lines. Blow down all lines. Rig down BJ cementing head and lines. Begin pumping out and cleaning pits. Rig down and load off Weatherford's casing running tools. Fold up stabbing board. Break out and lay down landing tools. Lay down casing elevators. Clear and clean rig floor. Change out snubbing post. Re-hang tongs. Rinse out cellar. Change oil in carrier motors. Nipple down and remove 16" diverter line and knife valve. Nipple down trip tank line, flow line and kill line. Remove and lay down mousehole. Disconnect chains to stack. Prepare to hoist up annular preventer. EPOCH PERSONNEL ON BOARD 2 DAILY COST ML: 2050 RW: 535 REPORT BY Craig Silva ~~ • Marathon Oil Company Ninilchik Unit DAILY WELLSITE REPORT ~~~~ Paxton 2 REPORT FOR Mitch Burns I Dan Byrd DATE Jan 20, 2008 DEPTH 1630 PRESENT OPERATION Nippling down stack TIME 24:00 YESTERDAY 1630 24 HOUR FOOTAGE 0 CASING INFORMATION 10 3/4" @ 1616' DEPTH INCLINATION AZIMUTH VERTICAL DEPTH SURVEY DATA 1630 (Projection) 36.64 008.11 1497.68 BIT INFORMATION INTERVAL CONDITION REASON NO. SIZE TYPE S/N JETS IN OUT FOOTAGE HOURS T/B/C PULLED 2 13.5 HTC MXL-1 5095626 3x18, 1x16cj 225 1630 1405 16.82 1-1-WT-A-E-1-NO-TD Casing point DRILLING PARAMETERS HIGH LOW AVERAGE CURRENT AVG RATE OF PENETRATION @ @ FT/HR SURFACETOROUE @ @ AMPS WEIGHT ON BIT @ @ KLBS ROTARY RPM @ @ RPM PUMP PRESSURE @ @ PSI DRILLING MUD REPORT DEPTH 1630 / 1498 TVD MW 9.6 VIS 47 PV 13 YP 20 FL 8.4 Gels 10/19/ CL- 300 FC 2 SOL 8.0 SD 0.33 OIL 0/92 MBL 25.0 pH 8.5 Ca+ 40 CCI MWD SUMMARY INTERVAL TO TOOLS GAS SUMMARY (units) HIGH LOW AVERAGE DITCH GAS 114 @ WG at 1630 1 @ Displacing 29 before POH TRIP GAS UTTING GAS @ @ WIPER GAS 114 CHROMATOGRAPHY(ppm) SURVEY METHANE (C-1) @ @ CONNECTION GAS HIGH ETHANE (C-2) @ @ AVG PROPANE (C-3) @ @ CURRENT BUTANE (C-4) @ @ CURRENT BACKGROUND/AVG 11 / 29 before POH PENTANE (C-5) @ @ HYDROCARBON SHOWS INTERVAL LITHOLOGY/REMARKS GAS DESCRIPTION LITHOLOGY PRESENT LITHOLOGY Finish circulating and conditioning. Check for flow. Pump dry job. Pull out of hole (SLM) to 181' (top of directional tools) on wiper trip. Run back in hole to 1599'. Wash down from 1599' to 1630' with no fill. Circulate bottoms up. Record 114 units of wiper gas. Pump around 40 bbl Hi-Vis sweep. Circulate hole clean. Check for flow. Pump dry job. Blow down lines. Pull out of hole (SLM with no correction) from 1630' to top of HWDP at 842'. Pull and stand back HWDP (plus jars) to 181' and then break and lay down directional assembly (shock sub, crossovers, flex joints, NM crossover, MWD tool, pony DC, stabilizer, motor, bit). Lay down bit handling tools. Clean and clear rig Floor. Rig up to run casing. Readjust and reset Topdrive rail. Rig up stabbing board. Move break-out tongs to driller's side and install correct tong head. Change out double kelly valve. Install and make up Weatherford's Lafleur fill-up tool. Remove hydraulic elevators and short bails. Install Tong bails and pick up line. Install casing elevators. Arrange tugger lines for hanging casing tongs. Rig up Weatherford casing tongs and tall snub post. Remove rotary bushings. Install Weatherford casing spider slips. Make up EZ-turn low torque valve onto casing swedge to act as a safety valve, then function test, record in IADC and leave in open position on the rig floor. Monitor trip tank. Stage centralizers on rig floor. Pre-clean casing threads on the DAILY shoe track joints. Hold pre-job meeting with all hands on procedures and safety for running surface casing string. Run in hole with 10 3/4" casing as per ACTIVITY Marathon program. Pick up, make up and run in hole shoe track (shoe joint, spacer joint, float collar). Clean and Bakerlok casing threads on each successive SUMMARY Joint while making up shoe track. Rig circulating tool and pump through to check floats. Continue to run in hole with 10 3/4" casing, filling each joint, and land casing at 1616.75'. Circulate and condition mud. Pick up and make up BJ cementing head with top and bottom plugs pre-installed. Rig up cementing lines. Hold pre-job meeting on safety and procedures for cement job. Continue to circulate and condition well (1 112 casing volumes). Pump 40 bbls of Mud Clean II with rig pumps. Switch to BJ cementing unit. Pump 4.60 bbls of water ahead and pressure test lines to 2746psi. Batch up cement. Drop 1st (bottom) plug and pump 208.0 bbls of 12.Oppg cement slurry (457 sacks Class G cement with 112.35 bbls of mix water and accelerator chemicals for 10.335 gal/sack yield). Drop 2nd (top) plug and kick out with 5.9 bbls of water. Displace with 163 bbls of 9.6ppg mud. Slow down pump rate before bumping. Bump plug on time with 1011 psi overpressure (1439 psi total). Bleed off and check floats. Floats held. Cement in place. Begin wait on cement. Clean cellar. Flush and wash-up all rig cementing and flow lines. Blow down all lines. Rig down BJ cementing head and lines. Begin pumping out and cleaning pits. Rig down and load off Weatherford's casing running tools. Fold up stabbing board. Break out and lay down landing tools. Lay down casing elevators. Clear and clean rig floor. Change out snubbing post. Re-hang tongs. Rinse out cellar. Change oil in carrier motors. Nipple down and remove 16" diverter line and knife valve. Nipple down trip tank line, Flow line and kill line. Remove and lay down mousehole. Disconnect chains to stack. Prepare to hoist up annular preventer. ~CH PERSONNEL ON BOARD 2 DAILY COST ML: 2050 RW: 535 REPORT BY Craig Silva Marathon Oil Company ~~~~J~ Ninilchik Unit DAILY WELLSITE REPORT Paxton 2 REPORT FOR Mitch Burns /Dan Byrd DATE Jan 21, 2008 DEPTH 1630 PRESENT OPERATION Testing BOPE TIME 24:00 YESTERDAY 1630 24 HOUR FOOTAGE 0 CASING INFORMATION 10 3/4" @ 1616' DEPTH INCLINATION AZIMUTH VERTICAL DEPTH SURVEY DATA BIT INFORMATION INTERVAL CONDITION REASON NO. SIZE TYPE S/N JETS IN OUT FOOTAGE HOURS T/B/C PULLED DRILLING PARAMETERS HIGH LOW AVERAGE CURRENT AVG RATE OF PENETRATION @ @ FT/HR SURFACE TORQUE @ @ AMPS WEIGHT ON BIT @ @ KLBS ROTARY RPM @ @ RPM PUMP PRESSURE @ @ PSI DRILLING MUD REPORT DEPTH 1630 / 1498 TVD MW 9.2 VIS 47 PV 7 YP 22 FL 8.8 Gels 7/9/10 CL- 32000 FC 1 SOL 4.0 SD 0 OIL 0/96 MBL 0.0 pH 8.5 Ca+ 80 CCI MWD SUMMARY INTERVAL TO TOOLS GAS SUMMARY (units) HIGH LOW AVERAGE DITCH GAS @ @ TRIP GAS CUTTING GAS @ @ WIPER GAS CHROMATOGRAPHY(ppm) SURVEY HANE (C-1) @ @ CONNECTION GAS HIGH ANE (C-2) @ @ AVG PROPANE (C-3) @ @ CURRENT BUTANE (C-4) @ @ CURRENT BACKGROUND/AVG PENTANE (C-5) @ @ HYDROCARBON SHOWS INTERVAL LITHOLOGY/REMARKS GAS DESCRIPTION LITHOLOGY PRESENT LITHOLOGY Continue pumping and hauling off mud ,and begin cleaning pits. Change bails. Nipple down fill-up and bleeder lines. Secure turnbuckles out the way. Nipple down bell nipple and move flowline extension aside. Make rough cut on 10 3l4" casing and lay down. Secure bridge crane to annular. Nipple down and load off diverter stack. Remove starter head. Make cut on 20" conductor and lay down. Make final dressed cut on 10 3/4" casing and lay down. Install 10 3/4" slip- DAILY lock connection by 11" 5M Flanged multi-bowl wellhead and test to 1600psi for 10 minutes. Install flowline extension and DSA spacer spool. Pick up annular ACTIVITY with bridge crane. Put doublegate on rack, spot under annular and nipple up. Change elevators. Rebuild low torque valve and install on mud manifold. Begin SUMMARY building Flo-Pro mud system. Thaw, rack, stack, bolt up and hammer up mud cross and single gate to the double gate and annular preventer. Install choke hardline and adaptor spool. Install check valve and kill line. Install quick connects on annular. Repair broken fitting on blind rams. Nipple up pitcher nipple and flow line adaptor. Chain up turnbuckles to stack. Install trip tank valve and actuator. Load drill pipe on pipe racks. Pull wear ring. Make up and run in test joint assembly. Set test plug. Rig up testing equipment. Pressure up to begin testing BOPE and immediately observe leak at lower DSA. Work through adjustment procedures until leak stops. Proceed with testing BOPE. EPOCH PERSONNEL ON BOARD 4 DAILY COST ML: 2850 RW: 535 REPORT BY Craig Silva • Marathon Oil Company ~~~~~ NinilchikUnit DAILY WELLSITE REPORT Paxton 2 REPORT FOR Mitch Burns I Dan Byrd DATE Jan 22, 2008 DEPTH 1693 PRESENT OPERATION Drilling TIME 24:00 YESTERDAY 1630 24 HOUR FOOTAGE 63 CASING INFORMATION 10 3/4" @ 1616' DEPTH INCLINATION AZIMUTH VERTICAL DEPTH SURVEY DATA 1648 37.00 7.99 1511.99 1710 36.84 8.38 1561.56 BIT INFORMATION INTERVAL CONDITION REASON NO. SIZE TYPE S/N JETS IN OUT FOOTAGE HOURS T/B/C PULLED 3 9.875 HCC 5062 7110659 6x12 1630 63 1.04 In Hole DRILLING PARAMETERS HIGH LOW AVERAGE CURRENT AVG RATE OF PENETRATION 133.6 @ 1672 16.8 @ 1651 89.6 84.1 FT/HR SURFACE TORQUE 9698 @ 1643 7149 @ 1668 8120.1 8322.7 AMPS WEIGHT ON BIT 10 @ 1631 3 @ 1672 7.3 3.8 KLBS ROTARY RPM 41 @ 1690 36 @ 1637 39.9 40.6 RPM PUMP PRESSURE 985 @ 1644 755 @ 1691 912.5 842.2 PSI DRILLING MUD REPORT DEPTH 1691 / 1546 TVD MW 9.2 VIS 50 PV 8 YP 22 FL 7.6 Gels 7/10/ CL- 33000 FC 1 SOL 4.0 SD 0 OIL 0/96 MBL 0.0 pH 9.4 Ca+ 80 CCI MWD SUMMARY INTERVAL TO TOOLS GAS SUMMARY (units) HIGH LOW AVERAGE DITCH GAS 208 @ 1647 12 @ 1651 55.5 TRIP GAS TING GAS @ @ WIPER GAS CHROMATOGRAPHY(ppm) SURVEY METHANE (C-1) 41610 @ 1647 2520 @ 1651 11099.9 CONNECTION GAS HIGH 85 ETHANE (C-2) 21 @ 1647 0 @ 1641 1.8 AVG 85 PROPANE (C-3) @ @ CURRENT 85 BUTANE (C-4) @ @ CURRENT BACKGROUND/AVG 12 / 45 PENTANE (C-5) @ @ HYDROCARBON Gas sands just out of shoe wth more than 85 units of gas. Poor shows overall SHOWS INTERVAL LITHOLOGY/REMARKS GAS DESCRIPTION 1645-1650; 1670- Sandstones supported by tuffaceous clay and volcanic ash; 208u Max at 1647, 114u avg SS/SD(Tuff SS med It gry, fine-med, ang-sbang, 1680 appears to have low perm due to volume of intergrain material, thru zones; 12 unit background clay spprt and disaggtd, lithic arenite-comp gywke, but some is disaggregated so Por/Perm unknown. before/after gas zones rate poor show due to matrix volume of clay. LITHOLOGY Major Sand/Sandstone, Tuffaceous Sandstone, Tuffaceous Claystone. Minor Tuffaceous Siltstone, Coal/Carbonaceous Shale, Calcareous Tuff. PRESENT LITHOLOGY ..........TUFFACEOUS CLAYSTONE..........TUFFACEOUS SANDSTONE/SAND..........TUFFACEOUS SILTSTONE.......... Test all BOPE (dart, annular, upper topdrive kellycock, CMVs 10-11-12, Floor valve, lower topdrive kellycock, upper pipe rams, CMVs 1-6-8-9, inside kill valve, CMVs 2-5-7, HCR, manual choke, lower pipe ram, blind rams, CMVs 3-4) to 250psi Low/ 2500psi High for 5 minutes. Test accumulator. Rig down testing DAILY equipment. Pull test plug. Set in wear bushing. Test casing to 2000psi for 30 minutes. Rig down blow down line. Pick up, drift, make up, run in hole, and then ACTIVITY Pull out standing back and strapping 20 stands/40 joints of 5" drill pipe. Slip 120' and cut 146' of drill line. Adjust kick roller. Set and check crown-o-matic. SUMMARY Work on trip tank valve and actuator. Pick up, make up and run in hole directional assembly to 820'. Scribe, orient and shallow test MWD. Continue running in directional assembly in hole with 5" drill pipe to 1514'. Wash from 1514' to 1572'. Drill out shoe tract from 1572' to 1630'. Drill 20' of new hole from 1630' to 1650'. Circulate bottoms up. Pump 25 bbls of water, followed by 30 bbl Hi-Vis sweep and chase with new 9.1 ppg Flo-Pro mud to displace the old spud mud. Rig up and run Formation Integrity Test to 15.Oppg EMW. Blow down choke. Begin building up Flo-Pro mud volume. Drill from 1650' to 1693'. EPOCH PERSONNEL ON BOARD 4 DAILY COST ML: 3400 RW: 535 REPORT BY Craig Silva • Marathon Oil Company ~~~~~~ Ninilchik Unit DAILY WELLSITE REPORT Paxton 2 REPORT FOR Mitch Burns /Dan Byrd DATE Jan 23, 2008 DEPTH 3002 PRESENT OPERATION Drilling TIME 24:00 YESTERDAY 1693 24 HOUR FOOTAGE 1309 CASING INFORMATION 10 3/4" @ 1616' DEPTH INCLINATION AZIMUTH VERTICAL DEPTH 1773 37.54 009.04 1611.74 2088 37.27 010.12 1861.48 SURVEY DATA 2404 38.47 009.59 2109.78 2719 36.62 010.59 2358.30 2972 30.72 010.47 2568.95 BIT INFORMATION INTERVAL CONDITION REASON NO. SIZE TYPE S/N JETS IN OUT FOOTAGE HOURS T/B/C PULLED 3 9.875 HCC 5062 7110659 6x12 1630 1672 14.69 In Hole DRILLING PARAMETERS HIGH LOW AVERAGE CURRENT AVG RATE OF PENETRATION 195.9 @ 2021 8.9 @ 2720 116.9 98.2 FT/HR SURFACE TORQUE 17752 @ 2833 0 @ Sliding 10767.8 13108.1 AMPS WEIGHT ON BIT 29.4 @ 2737 0.7 @ 1782 7.9 9.2 KLBS ROTARY RPM 77 @ 2833 0 @ Sliding 58.6 73.6 RPM PUMP PRESSURE 1338 @ 2848 764 @ 2066 1046.2 1182.6 PSI DRILLING MUD REPORT DEPTH 2834/2452 TVD MW 9.3 VIS 45 PV 11 YP 13 FL 6.8 Gels 7!9/ CL- 31500 FC 1 SOL 1.0 SD 0.2 OIL 0/95 MBL 3.5 pH 0.35 Ca+ 80 CCI MWD SUMMARY INTERVAL TO TOOLS SUMMARY (units) HIGH LOW AVERAGE TCH GAS 463 @ 2114 4 @ 2331 58.5 TRIP GAS CUTTING GAS @ @ WIPER GAS 34 CHROMATOGRAPHY(ppm) SURVEY METHANE (C-1) 92603 @ 2114 884 @ 2331 11659.5 CONNECTION GAS HIGH 69 ETHANE (C-2) 49 @ 2114 0 @ 2533 2.1 AVG 12 PROPANE (C-3) @ @ CURRENT 0 BUTANE (C-4) @ @ CURRENT BACKGROUND/AVG 5 / 25 PENTANE (C-5) @ @ HYDROCARBON SHOWS Note: seven (7) sand intervals with gas over 100 units. Range from poor to possibly good shows. INTERVAL LITHOLOGY/REMARKS GAS DESCRIPTION 1934-1968; 2007-2032; 2066- All fine to medium graywacke sands that are largely disaggregated; 463u High, 124u overall Sand/SS/Tuff SS: med dk gry-dk gray sand; 2141; 2353-2371; 2540-2553; apparent soluble supporting tuff cly mtnc; Por-Perm in clay avg thru sands, 20u fn-med; mod-mod w srtd; ang-sbang; 2648-2686; 2980-3005 supported ss is at least poor, but speculate that some sections background before/after compositional gywke;v abnt phyllite lithics; probably better that cuttings would indicate. gas zones Poor vis Por of clayey ss in spl trays. LITHOLOGY Major Sand/Sandstone, Tuffaceous Sandstone, Tuffaceous Claystone, Tuffaceous Siltstone. Minor Tuffaceous Shale, Coal/Carbonaceous, Volcanic Ash, Calcareous Tuff. PRESENT ,,,,,,,,,,SAND..........TUFFACEOUS CLAYSTONE.......... LITHOLOGY DAILY ACTIVITY Drill from 1693' to 2771'. Circulate bottoms up. Check for flow. Pull out of hole on wiper trip to 1574' (inside 10 3/4" shoe). Lube rig, crown, Topdrive SUMMARY and carrier. Change out tong inserts. Run back in hole to 2708'. Wash down from 2708' to 2771'. Drill (rotating and sliding) from 2771' to 3002'. EPOCH PERSONNEL ON BOARD 4 DAILY COST ML: 3400 RW: 535 REPORT BY Craig Silva • Marathon Oil Company Ninilchik Unit DAILY WELLSITE REPORT ~~~~~ Paxton 2 REPORT FOR Mitch Burns /Dan Byrd ATE Jan 24, 2008 DEPTH 3919 PRESENT OPERATION Circulating bottoms up after reaching casing point IME 24:00 YESTERDAY 3002 24 HOUR FOOTAGE 917 CASING INFORMATION 10 3/4" @ 1616' DEPTH INCLINATION AZIMUTH VERTICAL DEPTH 3035 28.78 011.55 2623.64 3288 20.72 011.02 2852.62 SURVEY DATA 3476 14.96 008.77 3031.55 3730 6.16 014.80 3281.18 3919 (Projection) 0.14 230.00 3469.84 BIT INFORMATION INTERVAL CONDITION REASON NO. SIZE TYPE S/N JETS IN OUT FOOTAGE HOURS T/B/C PULLED 3 9.875 HCC 5062 7110659 6x12 1630 3919 2289 29.80 In Hole Casing Pt. DRILLING PARAMETERS HIGH LOW AVERAGE CURRENT AVG RATE OF PENETRATION 152.1 @ 3074 7.7 @ 3604 82.7 127.9 FT/HR SURFACE TORQUE 11877 @ 3815 0 @ Sliding 4658.4 7943.3 AMPS WEIGHT ON BIT 28.3 @ 3681 0.3 @ 3308 9.5 12.5 KLBS ROTARY RPM 76 @ 3208 0 @ Sliding 43.3 73.7 RPM PUMP PRESSURE 1537 @ 3699 824 @ 3825 1298.4 1451.3 PSI DRILLING MUD REPORT DEPTH 3831 / 3382 TVD MW 9.5 VIS 47 PV 12 YP 21 FL 6.0 Gels 11/18/ CL- 28500 FC 1 SOL 6.0 SD 0.15 OIL 1/93 MBL 4.5 pH 9.7 Ca+ 60 CCI MWDSUMMARY INTERVAL TO TOOLS SUMMARY (units) HIGH LOW AVERAGE TCH GAS 316 @ 3316 9 @ 3808 54.5 TRIP GAS CUTTING GAS @ @ WIPER GAS CHROMATOGRAPHY{ppm) SURVEY METHANE (C-1) 63158 @ 3316 1923 @ 3772 10917.5 CONNECTION GAS HIGH 8 ETHANE (C-2) 33 @ 3316 0 @ 3384 1.5 AVG 2 PROPANE (C-3) @ @ CURRENT 0 BUTANE (C-4) @ @ CURRENT BACKGROUND/AVG 12 / 15 PENTANE (C-5) @ @ HYDROCARBON Note: two (2) sand intervals with gas over 100 units. Fair to possibly good shows. SHOWS INTERVAL LITHOLOGY/REMARKS GAS DESCRIPTION 3304-3336; 3432- Fine to medium graywacke sands, largely disaggregated, Max 316 High, 263 overall Sand/SS/Tuff SS: med dk gry-dk gry; fn-med; mod w 3470 apparent soluble tuffaceous clay supporting average thru sands, 10 unit srtd; ang-sbang; compositional graywacke; v abnt matrix,"guestimate" Por-Perm is fair and better than fair. background before/after sands phyllite-argillite lithics; calc cmtd SS has discernible Por. Major Tuffaceous Claystone, Sand/Sandstone, Tuffaceous Sandstone, Coal/Carbonaceous Shale. Minor Tuffaceous Siltstone, Tuffaceous Shale, LITHOLOGY Volcanic Ash, Calcareous Tuff. PRESENT TUFFACEOUS CLAYSTONE..........SAND.......... ,,,,,..,,, LITHOLOGY DAILY ACTIVITY SUMMARY Drill (rotating and sliding) from 3002' to casing point at 3919'. Circulate bottoms up . EPOCH PERSONNEL ON BOARD 4 DAILY COST ML: 3400 RW: 535 REPORT BY Craig Silva Marathon Oil Company 1J~~~~~ Ninilchik Unit DAILY WELLSITE REPORT Paxton 2 REPORT FOR Mitch Burns /Dan Byrd ATE Jan 25, 2008 DEPTH 3919 PRESENT OPERATION Cieculating and conditioning hole on clean out run IME 24:00 YESTERDAY 3919 24 HOUR FOOTAGE 0 CASING INFORMATION 10 3/4" @ 1616' DEPTH INCLINATION AZIMUTH VERTICAL DEPTH SURVEY DATA BIT INFORMATION INTERVAL CONDITION REASON NO. SIZE TYPE S/N JETS IN OUT FOOTAGE HOURS T/B/C PULLED 3 9 875 HCC 5062 7110659 6x12 1630 3919 2289 29.80 1-1-WT-A-X-1-CT-TD Casing point 3RR1 8.875 HCC 5062 7110659 6x12 3919 3919 0 n/a NG Clean out run only DRILLING PARAMETERS HIGH LOW AVERAGE CURRENT AVG RATE OF PENETRATION @ @ FT/HR SURFACE TORQUE @ @ AMPS WEIGHT ON BIT @ @ KLBS ROTARY RPM @ @ RPM PUMP PRESSURE @ @ PSI DRILLING MUD REPORT DEPTH 3919 / 3470 TVD MW 9.6 VIS 45 PV 11 YP 15 FL 6.6 Gels 6/13 CL- 29000 FC 2 SOL 6.5 SD Tr OIL 1/93 MBL 5.0 pH 9.8 Ca+ 80 CCI MWD SUMMARY INTERVAL TO TOOLS GAS SUMMARY (units) HIGH LOW AVERAGE DITCH GAS 169 @ WG at 3919 3 @ at last pump shut down 6 after last sweep TRIP GAS 88 TTING GAS @ @ WIPER GAS 169 CHROMATOGRAPHY(ppm) SURVEY METHANE (C-1) @ @ CONNECTION GAS HIGH ETHANE (C-2) @ @ AVG PROPANE (C-3) @ @ CURRENT BUTANE (C-4) @ @ CURRENT BACKGROUND/AVG N/A PENTANE (C-5) @ @ HYDROCARBON SHOWS INTERVAL LITHOLOGY/REMARKS GAS DESCRIPTION LITHOLOGY PRESENT LITHOLOGY Finish circulating bottoms up. Circulate hole clean. Check for flow. Pull out of hole to 1574' (inside shoe) on wiper trip. Run back in hole to 3844'. Wash down from 3844' to 3919' with no fill. Circulate bottoms up. Record 169 units of wiper gas. Pump around Hi-Vis sweep with minimal increase in cuttings. Circulate hole clean. Check for flow. Pump dry job. Blow down mud lines. Pull out of hole (SLM). Drop rabbit. Pull out to top of directional tools at 162'. Pull and stand back flex collars. Pull, break and lay down remaining directional tools (crossovers, MWD, pony DC, stabilizer, motor, bit). Lay down handling tools. Blow down DAILY mud lines. Clear and clean rig floor. Hold pre-job meeting with Weatherford Wireline Services on procedures and safety for rigging up and running wireline ACTIVITY logging assembly. Rig up WWS to run logs. Make up, pick up and run in Quad-Combo logging tool assembly. Load neutron tool sources. Run in hole with Q-C SUMMARY assembly and tag bottom at 3919'. (Record 10 3/4" shoe at 1606' on way in). Log up from 3919' to 1300'. Pull out of hole with wireline assembly. Remove sources. Pull, break and lay down logging tools. Rig down and load off WWS equipment. Pick up, make up, run in, cross to HWDP, and continue running in hole short assembly (bit, bit sub, float sub, pony DC, flex collars, crossover) for clean out run. Run in hole on HWDP to 759' and on 5" drill pipe to 5850'. Wash down from 5850' to 3919' with no fill. Circulate bottoms up. Record 88 units of trip gas. Pump around Hi-Vis sweep with minimal increase in cuttings. Continue to circulate and clean hole. EPOCH PERSONNEL ON BOARD 4 DAILY COST ML: 3400 RW: 535 Consulting: 1300 REPORT BY Craig Silva Marathon Oil Company ~~~~J~ Ninilchik Unit DAILY WELLSITE REPORT Paxton 2 REPORT FOR Mitch Burns /Dan Byrd DATE Jan 26 2008 DEPTH 3919 PRESENT OPERATION Running in hole with 7 5/8" casing TIME 24:00 YESTERDAY 3919 24 HOUR FOOTAGE 0 CASING INFORMATION 10 3/4" @ 1616' DEPTH INCLINATION AZIMUTH VERTICAL DEPTH SURVEY DATA BIT INFORMATION INTERVAL CONDITION REASON NO. SIZE TYPE S/N JETS IN OUT FOOTAGE HOURS T/B/C PULLED 3RR1 9.875 HCC 5062 7110659 6x12 3919 3919 0 n/a 1-1-WT-A-X-1-CT-TD Clean out run only DRILLING PARAMETERS HIGH LOW AVERAGE CURRENT AVG RATE OF PENETRATION @ @ FT/HR SURFACETOROUE @ @ AMPS WEIGHT ON BIT @ @ KLBS ROTARY RPM @ @ RPM PUMP PRESSURE @ @ PSI DRILLING MUD REPORT DEPTH MW VIS PV YP FL Gels CL- FC SOL SD OIL MBL pH Ca+ CCI MWD SUMMARY INTERVAL TO TOOLS GAS SUMMARY (units) HIGH LOW AVERAGE DITCH GAS 6 @ before POOH 1 @ pump shut down 3 last circ before POOH TRIP GAS CUTTING GAS @ @ WIPER GAS CHROMATOGRAPHY(ppm) SURVEY HANE (C-1) @ @ CONNECTION GAS HIGH ETHANE (C-2) @ @ AVG PROPANE (C-3) @ @ CURRENT BUTANE (C-4) @ @ CURRENT BACKGROUND/AVG N/A PENTANE (C-5) @ @ HYDROCARBON SHOWS INTERVAL LITHOLOGYIREMARKS GAS DESCRIPTION LITHOLOGY PRESENT LITHOLOGY Continue to circulate and condition hole. Check for flow. Pump dry job. Pull out of hole laying down drill pipe. Pull and lay down pipe to 760'. Run in hole with 3 stands of drill pipe still in derrick. Pull out of hole laying down drill pipe, HWDP, jars and clean out run assembly (crossover, flex collars, stabilizer, float sub, bit sub, bit). Lay down handling tools. Clear and clean rig floor. Pull wear bushing. Pick up landing joint. Make up and dummy run 7 5/8" casing hanger. Change upper pipe rams to 7 5/8" and test to 250psi Lo/2500psi Hi. Rig up to run casing. Move break-out tongs to driller's side and install correct tong head. Rig down pipe spinner. Readjust and reset torque tube. Remove hydraulic elevators and short bails. Rig up Weatherford casing tongs and tall snub post. Troubleshoot DAILY stuck stabbing board. Free up, rig up and test stabbing board. Change out double kelly valve. Install and make up Weatherford's Lafleur fill-up tool. Install long ACTIVITY bails and pick up line. Install casing elevators. Arrange tugger lines for hanging casing tongs. Remove rotary bushings. Install Weatherford casing spider slips. SUMMARY Make up EZ-turn low torque valve onto casing swedge to act as a safety valve, then function test, record in IADC and leave in open position on the rig floor. Monitor trip tank. Stage centralizers on rig floor. Pre-clean casing threads on the shoe track joints. Hold pre-job meeting with all hands on procedures and safety for running 7 5/8" casing string. Run in hole with 7 5/8" casing as per Marathon program. Pick up, make up and run in hole shoe track (shoe joint, spacer joint, float collar). Clean and Bakerlok casing threads on each successive joint while making up shoe track. Rig circulating tool and pump through to check floats. Continue to run in hole with 7 5l8" casing, filling each joint, to 1338'. Troubleshoot and and correct Weatherford electrical problem. Continue running in hole with 7 Sl8" casing from 1338'. EPOCH PERSONNEL ON BOARD 4 DAILY COST ML: 3400 RW: 535 REPORT BY Craig Silva Marathon Oil Company ~~~~~ Ninilcnikunit DAILY WELLSITE REPORT Paxton 2 REPORT FOR Mitch Burns I Dan Byrd DATE Jan 27, 2008 DEPTH 3919 PRESENT OPERATION Preparing to pickup 4" drill pipe TIME 24:00 YESTERDAY 3919 24 HOUR FOOTAGE 0 CASING INFORMATION DEPTH INCLINATION AZIMUTH VERTICAL DEPTH SURVEY DATA BIT INFORMATION INTERVAL CONDITION REASON NO. SIZE TYPE S/N JETS IN OUT FOOTAGE HOURS T/B/C PULLED DRILLING PARAMETERS HIGH LOW AVERAGE CURRENT AVG RATE OF PENETRATION @ @ FT/HR SURFACETOROUE @ @ AMPS WEIGHT ON BIT @ @ KLBS ROTARY RPM @ @ RPM PUMP PRESSURE @ @ PSI DRILLING MUD REPORT DEPTH 3919 / 3470 TVD MW 9.6 VIS 45 PV 11 YP 15 FL 6.6 Gels 6/13/ CL- 29000 FC 2 SOL 6.5 SD Tr OIL 1193 MBL 5.0 pH 9.8 Ca+ 80 CCI MWD SUMMARY INTERVAL TO TOOLS GAS SUMMARY (units) HIGH LOW AVERAGE DITCH GAS 12 @ TG at 3902 0 @ displacing 3 while conditioning TRIP GAS 12 CUTTING GAS @ @ WIPER GAS CHROMATOGRAPHY(ppm) SURVEY HANE (C-1) @ @ CONNECTION GAS HIGH , ANE (C-2) @ @ AVG PROPANE (C-3) @ @ CURRENT BUTANE (C-4) @ @ CURRENT BACKGROUND/AVG N/A PENTANE (C-5) @ @ HYDROGARBON SHOWS INTERVAL LITHOLOGY/REMARKS GAS DESCRIPTION LITHOLOGY PRESENT LITHOLOGY Continue running in hole with 7 5/8" casing as per Marathon program, filling each joint, from 1338' to 1600'. Circulate bottoms up. Record 4 units maximum of gas. Continue running in hole from 1600' with 7 5/8" casing, filling each joint, and land casing at 3902.38'. Rig down and load off Weatherford's casing running tools. Blow down Topdrive. Make up swedge onto landing joint and begin circulating and conditioning mud. Circulate bottoms up. Record 12 units of trip gas. Continue to circulate and condition mud. Rig up cementing lines. Begin pre-mixing cement in pods. Circulate and condition well for total of 1 1/2 casing volumes. Pre-treat 172 bbls of mud with 2ppg sodium bicarbonate prior to cement job. Transfer excess mud in pits out to trucks and begin hauling off. Rig down swedge. Pick up and install BJ cementing head with top and bottom plugs pre-installed. Rig up cementing lines. Hold pre-job meeting with all hands on safety and procedures for cement job. Switch to BJ cementing unit. Pump 2.6 bbls of water ahead and pressure test lines to 3004psi. Drop 1st (bottom) plug and pump 31.7 bbl sweep of 10.5ppg MCS4D (using 25.68 bbls water). Batch up cement. Pump 98.0 bbls of 12.Oppg lead cement slurcy (265 sacks Class G cement with 48.34 bbls of mix water and accelerator chemicals for 7.662 gaUsack yield), and then pump 28.3 bbls of 15.8ppg tail cement slurry (150 sacks DAILY Class G cement with 17.64 bbls of mix water and accelerator chemicals for 4.939 gal/sack yield). Drop 2nd (top) plug and kick out with 5.7 bbls of water. ACTIVITY Displace with 170.98 bbls of treated 9.6ppg mud. Slow down pump rate before bumping. Bump plug exactly on time with 1019psi over displacement pressure SUMMARY (1602 psi total). Bleed off and check floats. Floats held. Cement in place. Begin wait on cement. Flush, blow down and rig down BJ cementing head and lines. Wash up, flush and blow down Flow lines. Blow down all remaining open lines. Change out snubbing post, Break, lay down and load off cementing head, landing joint and fill-up tool. Change out long bails to short, and casing elevators to pipe elevators. Lay down and load off long bails and casing elevators. Clear and clean rig floor. Clean cellar. Begin pumping out and cleaning pits. Rearrange tugger line. Switch out casing tongs to pipe tongs. Install pack-off and test to 5000psi for 30 minutes. Rig up stack flusher, Flush the BOPE stack and then blow down the Topdrive and all associated mud lines. Change out upper pipe rams to 2 7/8" by 5 1/2" variable. Change out lower pipe rams to 4". Change out saver sub. Lay down all 5" subs and equipment. Change out elevator inserts. Pick up 4" subs and equipment. Prepare to test BOPS. Pull wear ring. Make up and run in test joint assembly. Set test plug. Rig up testing equipment. Test all BOPE (dart, annular, upper and lower Topdrive IBOPs, floor valve, upper and lower pipe rams, inside kill valve, HCR, manual choke, blind rams, CMVs 1-12) to 250psi Low/ 2500psi High for 5 minutes. Test accumulator. Rig down test equipment. Pull test plug. Set wear ring. Rig up and test casing to 2000psi for 30 minutes. Rig down test equipment and blow down line. Readjust position of torque tube. Fold up and put away stabbing board. Rig up handling equipment of picking up 4" drill pipe. ~OCH PERSONNEL ON BOARD 4 DAILY COST ML: 3400 RW: 535 REPORT BY Craig Silva Marathon Oil Company ~~~~~ Ninilchik Unit DAILY WELLSITE REPORT Paxton 2 REPORT FOR Mitch Burns /John Nicholson DATE Jan 28 2008 DEPTH 3919 PRESENT OPERATION Drilling on Float collar. TIME 24:00 YESTERDAY 3919 24 HOUR FOOTAGE 0 CASING INFORMATION 7 5/8" @ 3902' DEPTH INCLINATION AZIMUTH VERTICAL DEPTH SURVEY DATA BIT INFORMATION INTERVAL CONDITION REASON NO. SIZE TYPE S/N JETS IN OUT FOOTAGE HOURS T!B/C PULLED 4 6.75 HCC 505X 7012959 5x11 3919 In Hole DRILLING PARAMETERS HIGH LOW AVERAGE CURRENT AVG RATE OF PENETRATION @ @ FT/HR SURFACETOROUE @ @ AMPS WEIGHT ON BIT @ @ KLBS ROTARY RPM @ @ RPM PUMP PRESSURE @ @ PSI DRILLING MUD REPORT DEPTH 3919 / 3470 TVD MW 9.6 VIS 45 PV 11 YP 15 FL 6.6 Gels 6/13/ CL- 29000 FC 2 SOL 6.5 SD Tr OIL 1/93 MBL 5.0 pH 9.8 Ca+ 80 CCI MWD SUMMARY INTERVAL TO TOOLS GAS SUMMARY (units) HIGH LOW AVERAGE DITCH GAS 1 @ checking MWD 0 @ checking MWD 0 MWD and manifold tests TRIP GAS CUTTING GAS @ @ WIPER GAS CHROMATOGRAPHY(ppm) SURVEY HANE (C-1) @ @ CONNECTION GAS HIGH ETHANE (C-2) @ @ AVG PROPANE (C-3) @ @ CURRENT BUTANE (C-4) @ @ CURRENT BACKGROUNDIAVG N/A PENTANE (C-5) @ @ HYDROCARBON SHOWS INTERVAL LITHOLOGY/REMARKS GAS DESCRIPTION LITHOLOGY PRESENT LITHOLOGY Strap, drift, pick up, make up, run in hole and then pull out of hole standing back 4" drill pipe (to 4537.45' on the bank). Pick up, make up and run in hole DAILY directional tools (bit, motor, stabilizer, pony collar, MWD, filter sub, 2 flex joints, crossover), then strap, pick up, make up and continue running in hole with 8 ACTIVITY joints (4 stands) of 4" HWDP, jars and 34 more joints (17 stands) of HWDP for a total bottom hole assembly to 818.05'. Calibrate block height for BHI's SUMMARY AUTOTRAK run. Hook up (5000psi rated) 2" hoses to BPA manifold and surface test. Blow down mud lines. Strap, drift, pick up, make up and run in hole singles of 4"drill pipe from 818' to top of float collar at 3817'. Drill on float collar at 3817'. EPOCH PERSONNEL ON BOARD 4 DAILY COST ML: 3400 RW: 535 REPORT BY Craig Silva • Marathon Oil Company NinilchikUnit ~~~~~ DAILY WELLSITE REPORT Paxton 2 REPORT FOR Mitch Burns 1 John Nicholson DATE Jan 29, 2008 DEPTH 5221 PRESENT OPERATION Drilling TIME 24:00 YESTERDAY 3919 24 HOUR FOOTAGE 1302 CASING INFORMATION 7 5/8" @ 3902' DEPTH INCLINATION AZIMUTH VERTICAL DEPTH 3964 0.45 036.50 3514.82 4279 0.54 020.43 3829.81 SURVEY DATA 4594 0.80 008.48 4144.79 4909 0.74 007.60 4459.76 5225 0.88 355.77 4475.73 BIT INFORMATION INTERVAL CONDITION REASON NO. SIZE TYPE S/N JETS IN OUT FOOTAGE HOURS T/B/C PULLED 4 6.75 HCC 505X 7012959 5x11 3919 1302 13.93 In Hole DRILLING PARAMETERS HIGH LOW AVERAGE CURRENT AVG RATE OF PENETRATION 190.1 @ 4477 15.1 @ 3937 107.8 55.4 FT/HR SURFACE TORQUE 8532 @ 5196 4491 @ 3921 6361.8 7468.3 AMPS WEIGHT ON BIT 35.0 @ 5047 0.5 @ 4303 11.6 27.2 KLBS ROTARY RPM 90 @ 5191 25 @ 5174 59.2 72.2 RPM PUMP PRESSURE 1853 @ 5150 959 @ 3923 1483.8 1503.4 PSI DRILLING MUD REPORT DEPTH 5059 / 4610 TVD MW 9.4 VIS 47 PV 11 YP 20 FL 5.6 Gels 10/14/ CL- 30000 FC 1 SOL 5.0 SD 0.25 OIL 0/95 MBL 4.5 pH 9.8 Ca+ 80 CCI MWD SUMMARY INTERVAL TO TOOLS SUMMARY (units) HIGH LOW AVERAGE CH GAS 210 @ 4145 2 @ 4529 32.4 TRIP GAS CUTTING GAS @ @ WIPER GAS CHROMATOGRAPHY(ppm) SURVEY METHANE (C-1) 42082 @ 4145 415 @ 4277 6442.1 CONNECTION GAS HIGH ETHANE (C-2) 22 @ 4144 0 @ 4900 1.3 AVG PROPANE (C-3) @ @ CURRENT BUTANE (C-4) @ @ CURRENT BACKGROUND/AVG 10 / 25 PENTANE (C-5) @ @ HYDROCARBON SHOWS 19 sand intervals with gas over 60 units. Range from poor to good shows. INTERVAL LITHOLOGY/REMARKS GAS DESCRIPTION Highest gases at: 4066-4074, 4135- All intervals are ss and tuff ss that are mostly gr spprtd 210max, 105 avg SS/Sand/Tuff SS =med It gry, fn-med, mod w srtd, 4150,4150 4175-4185,4470- by weak intergrain calcite and silica, are friable, thru zones, 10u ang-sbang, gr spprtd with talc-silic cmt, matrx 4480,4595-4610, 4860-4870, 4935- disaggregate easily, and appear to have fair to good Por backgrnd before and spprted w/ash and devil talc replcd ash; most 4950 after appears to have good Por. Major Sandstone/Sand, Tuffaceous Sandstone, Tuffaceous Siltstone, Tuffaceous Claystone. Minor Volcanic Ash, Coal/Carbonaceous Shale, LITHOLOGY Calcareous Tuff, Conglomeratic Sand. PRESENT ..,,,,,,,,SANDISANDSTONE..........TUFFACEOUS SANDSTONE.......... LITHOLOGY Drill out float collar at 3817'. Continue to drill out shoe tract (Float collar, cement, casing shoe at 3902', rathole) to 3919'. Drill 20' of new hole to 3939'. DAILY ACTIVITY Circulate bottoms up. Circulate hole clean. Swap over old 9.6ppg Flo-Pro mud with new 9.1 ppg Flo-Pro mud. Perform Formation Integrity Test to SUMMARY 15.Oppg EMW (9.05 mud, 3453' tvd, 1070psi). Drill ahead from 3939' to 5221'. EPOCH PERSONNEL ON BOARD 4 DAILY COST ML: 3400 RW: 535 REPORT BY Craig Silva l~ u Marathon Oil Company ~~~J~ Ninilchik Unit DAILY WELLSITE REPORT Paxton 2 REPORT FOR Mitch Burns /John Nicholson ~ DATE Jan 30, 2008 DEPTH 5984 PRESENT OPERATION Drilling TIME 24:00 YESTERDAY 5221 24 HOUR FOOTAGE 766 CASING INFORMATION 7 5/8" @ 3902' DEPTH INCLINATION AZIMUTH VERTICAL DEPTH 5288 0.91 359.43 4838.73 5476 0.57 355.81 5026.71 SURVEY DATA 5666 0.89 004.38 5216.69 5791 0.98 004.91 5341.68 5982 1.34 010.46 5532.64 BIT INFORMATION INTERVAL CONDITION REASON NO. SIZE TYPE S/N JETS IN OUT FOOTAGE HOURS T/B/C PULLED 4 6.75 HCC 505X 7012959 5x11 3919 2065 25.09 In Hole DRILLING PARAMETERS HIGH LOW AVERAGE CURRENT AVG RATE OF PENETRATION 183.8 @ 5311 11.6 @ 5896 87.7 29.9 FT/HR SURFACE TORQUE 9191 @ 5494 0 @ Sliding 7355.4 7155.0 AMPS WEIGHT ON BIT 29 @ 5894 0.5 @ 5272 9.5 16.1 KLBS ROTARY RPM 92 @ 5445 0 @ Sliding 72.0 84.1 RPM PUMP PRESSURE 1975 @ 5581 1325 @ 5844 1620.3 1488.7 PSI DRILLING MUD REPORT DEPTH 5900 /5451 TVD MW 9.3 VIS 44 PV 10 YP 21 FL 5.0 Gels 11/151 CL- 31000 FC 1 SOL 4.5 SD 0.15 OIL 1/95 MBL 3.75 pH 9.2 Ca+ 80 CCI MWDSUMMARY INTERVAL TO TOOLS SUMMARY (units) HIGH LOW AVERAGE DITCH GAS 184 @ 5957 2 @ 5532 35.8 TRIP GAS CUTTING GAS @ @ WIPER GAS 161 CHROMATOGRAPHY(ppm) SURVEY METHANE (C-1) 36903 @ 5957 414 @ 5532 7129.3 CONNECTION GAS HIGH ETHANE (C-2) 14 @ 5957 0 @ 5601 1.0 AVG PROPANE (C-3) @ @ CURRENT BUTANE (C-4) @ @ CURRENT BACKGROUNDIAVG 14 / 42 PENTANE (C-5) @ @ HYDROCARBON Note only intervals with gas over 100 units were coals. Several sands approached 100 units. SHOWS INTERVAL LITHOLOGY/REMARKS GAS DESCRIPTION 18 sands with gas over Tuff and non-tuff sandstones; matrix volume is variable; 99max, 67avg thru zones, 12u Tuff SS/SS/Sand = med It gry, fn-med,mod w srtd, tuff 60 units. when matnc is abundant, Por is poor to good. background before and after mtnc spprted, calcite cmtd gr spprtd, angular, often disaggregated LITHOLOGY Major Tuffaceous Sandstone, Sand/Sandstone, Tuffaceous Siltstone, Tuffaceous Claystone Minor Volcanic Ash,Coal/Carbonaceous Shale. PRESENT LITHOLOGY ..........TUFFACEOUS SANDSTONE..........SAND/SANDSTONE..........TUFFACEOUS SILTSTONE.......... Drill from 5221' to 5545'. Observe apparent leaking wash pipe. Pull out of hole on wiper trip to 3898' Qust inside shoe) to make repairs. Change out wash DAILY pipe. Replace grabber dies. Change out stabbing guide from 5" to 4". Adjust load lines from carrier to mast. Service/lube rig, carrier and Topdrive. Clear rig ACTIVITY floor of tools and ready rig to run in hole. Change seal on mud saver valve. Run back in hole to 5411'. Do brief MAD pass and log from 5411' to 5421'. SUMMARY Wash down from 5421' to bottom 5545'. Work through tight section from 5485' to 5530' while washing down. Record 161 units of wiper gas. Drill from 5545' to 5984'. EPOCH PERSONNEL ON BOARD 4 DAILY COST ML: 3400 RW: 535 REPORT BY Craig Silva • Marathon Oil Company ~~~~J~ Ninilchik Unit DAILY WELLSITE REPORT Paxton 2 REPORT FOR Mitch Burns I John Nicholson DATE Jan 31, 2008 DEPTH 7089 PRESENT OPERATION Drilling TIME 24:00 YESTERDAY 5984 24 HOUR FOOTAGE 1105 CASING INFORMATION 7 5/8" @ 3902' DEPTH INCLINATION AZIMUTH VERTICAL DEPTH 6043 1.49 014.70 5593.62 6296 2.20 020.27 5846.49 SURVEY DATA 6548 2.55 029.49 6098.26 6862 2.39 040.96 6411.96 7116 2.31 046.13 6665.73 BIT INFORMATION INTERVAL CONDITION REASON NO. SIZE TYPE SIN JETS IN OUT FOOTAGE HOURS T/B/C PULLED 4 6.75 HCC 505X 7012959 5x11 3919 3170 43.29 In Hole DRILLING PARAMETERS HIGH LOW AVERAGE CURRENT AVG RATE OF PENETRATION 166.6 @ 6492 7.7 @ 6897 87.6 71.6 FT/HR SURFACE TORQUE 10125 @ 6366 2624 @ 6662 7707.2 9146.0 AMPS WEIGHT ON BIT 17.2 @ 6366. 0.5 @ 6285 6.2 5.7 KLBS ROTARY RPM 88 @ 6160 17 @ 6662 68.9 74.3 RPM PUMP PRESSURE 2539 @ 6366 1462 @ 6326 1736.9 1777.0 PSI DRILLING MUD REPORT DEPTH 7080 / 6630 TVD MW 9.2 VIS 45 PV 10 YP 22 FL 5.1 Gels 11/16/18 CL- 30000 FC 1 SOL 4.5 SD Tr OIL 1/95 MBL 3.0 pH 9.7 Ca+ 80 CCI MWD SUMMARY INTERVAL TO TOOLS SUMMARY (units) HIGH LOW AVERAGE DITCH GAS 164 @ 6626 6 @ 6808 43.0 TRIP GAS CUTTING GAS @ @ WIPER GAS CHROMATOGRAPHY(ppm) SURVEY METHANE (C-1) 32646 @ 6252 1225 @ 6808 8344.9 CONNECTION GAS HIGH ETHANE (C-2) 55 @ 6624 0 @ 6279 2.3 AVG PROPANE (C-3) 3 @ 6935 0 @ 7037 0.0 CURRENT BUTANE (C-4) @ @ CURRENT BACKGROUND/AVG 16 / 36 PENTANE (C-5) @ @ HYDROCARBON No clearly defined "sand-only" zones with gas over 100 units in this report inerval. All Hi-Gas zones a mix of coal and sand. SHOWS INTERVAL LITHOLOGY/REMARKS GAS DESCRIPTION At least 13 sand sections Sand, sandstone and tuffaceous sandstone is both Sandiest of mixed coal-sand Sd/SSITuffaceous SS =med It gry-It gry, v fn-crse, mod have more than 60 units. grain and matrix supported. Where discernible Por is 119u Max, 95u Avg, 15u srtd at fn-med, mod w srtd, calcite cmtd and volt ash/tuff (and Perm) appears fair to good. before and after section. cly supported, ang, disaggtd, mod-good visible Por. LITHOLOGY Major Sand/Sandstone, Tuffaceous Sandstone, Tuffaceous Siltstone, Tuffaceous Claystone. Minor Coal/Carbonaceous Shale, Calcareous Tuff, Conglomeratic Sand. PRESENT ...,,,..„TUFFACEOUS SILTSTONE..........TUFFACEOUS CLAYSTONE..........SANDSTONE.......... LITHOLOGY DAILY ACTIVITY SUMMARY Drill from 5984' to 7089'. EPOCH PERSONNEL ON BOARD 4 DAILY COST ML: 3400 RW: 535 REPORT BY Craig Silva Marathon Oil Company Ninilchik Unit DAILY WELLSITE REPORT ~~ ~~~~~ Paxton 2 REPORT FOR Mitch Burns /John Nicholson DATE Feb 01, 2008 DEPTH 8232 PRESENT OPERATION Drilling TIME 24:00 YESTERDAY 7089 24 HOUR FOOTAGE 1143 CASING INFORMATION 7 5/8" @ 3902' DEPTH INCLINATION AZIMUTH VERTICAL DEPTH 7178 2.34 046.47 6727.68 7428 2.20 046.33 6977.47 SURVEY DATA 7744 2.31 054.80 7293.22 7996 2.28 044.55 7545.02 8250 1.91 045.94 7798.82 BIT INFORMATION INTERVAL CONDITION REASON NO. SIZE TYPE S/N JETS IN OUT FOOTAGE HOURS T/B/C PULLED 4 6.75 HCC 505X 7012959 5x11 3919 4313 61.81 In Hole DRILLING PARAMETERS HIGH LOW AVERAGE CURRENT AVG RATE OF PENETRATION 166.6 @ 7122 9.4 @ 7562 81.1 85.2 FT/HR SURFACE TORQUE 12063 @ 8111 7194 @ 7594 8989.8 8950.2 AMPS WEIGHT ON BIT 12.9 @ 7316 1.0 @ 7825 6.3 7.7 KLBS ROTARY RPM 84 @ 7443 51 @ 7676 78.3 77.3 RPM PUMP PRESSURE 2364 @ 7578 1351 @ 8144 1857.4 1974.0 PSI DRILLING MUD REPORT DEPTH 8232 / 7781 TVD MW 9.3 VIS 45 PV 9 YP 23 FL 4.8 Gels 11/15/17 CL- 32000 FC 1 SOL 4.7 SD Tr OIL 1/94 MBL 2.4 pH 9.6 Ca+ 80 CCI MWD SUMMARY INTERVAL TO TOOLS SUMMARY (units) HIGH LOW AVERAGE ITCH GAS 340 @ 7404 11 @ 7724 54.2 TRIP GAS CUTTING GAS @ @ WIPER GAS CHROMATOGRAPHY(ppm) SURVEY METHANE (C-1) 69766 @ 7404 1358 @ 7115 10798.1 CONNECTION GAS HIGH ETHANE (C-2) 124 @ 7404 0 @ 7334 8.9 AVG PROPANE (C-3) 19 @ 7404 0 @ 7117 0.9 CURRENT BUTANE (C-4) @ @ CURRENT BACKGROUND/AVG 16 ! 42 PENTANE (C-5) @ @ Note 14 sand intervals with more than 100 units of gas and 25 intervals with more than 60 units. Shows range from mostly poor to HYDROCARBON SHOWS fair to possibly good. INTERVAL LITHOLOGY/REMARKS GAS DES CRIPTION Many zones with gas, but small coals Sand, sandstone, tuffaceous sandstone are both 340u Max, 265u avg in Sd/S S/Tuffaceous SS =med It gry, fn-crse, mod w may contribute to the gas totals. Best graing and matrix supported. Most sands appear to the zone,27u before srtd at fn-med boundary, calcite cmtd, tuff cly-ash gas sand is at 7391-7421. have fair to good Por. and after section spprtd, ang-sbang, disaggtd, mod-good vis Por. Major Sand/Sandstone, Tuffaceous Sandstone, Tuffaceous Siltstone, Tuffaceous Claystone, Coal/Carbonaceous Shale. Minor Conglomeratic LITHOLOGY Sand/Conglomerate, Calcareous Tuff. PRESENT ,,,,,.,..,SAND/SANDSTONE..........TUFFACEOUS SANDSTONE.......... LITHOLOGY DAILY ACTIVITY SUMMARY Drill from 7089' to 8232'. EPOCH PERSONNEL ON BOARD 4 DAILY COST ML: 3400 RW: 535 REPORT BY Craig Silva Marathon Oil Company ~~~ Ninilchik Unit DAILY WELLSITE REPORT Paxton 2 REPORT FOR Mitch Burns /John Nicholson ATE Feb 02, 2008 DEPTH 8436 PRESENT OPERATION Pulling out of hole after reaching Total Depth TIME 24:00 YESTERDAY 8232 24 HOUR FOOTAGE 204 CASING INFORMATION 7 5I8" @ 3902' DEPTH INCLINATION AZIMUTH VERTICAL DEPTH 8312 2.30 045.98 7860.78 SURVEY DATA 8375 1.84 048.56 7923.74 8436 (Projection) 1.84 048.56 7984.70 BIT INFORMATION INTERVAL CONDITION REASON NO. SIZE TYPE SIN JETS IN OUT FOOTAGE HOURS T/B/C PULLED 4 6.75 HCC 505X 7012959 5x11 3919 4517 66.92 In Hole DRILLING PARAMETERS HIGH LOW AVERAGE CURRENT AVG RATE OF PENETRATION 109.8 @ 8426 5.0 @ 8306 59.9 12.5 FT/HR SURFACE TORQUE 11026 @ 8434 7481 @ 8264 9466.9 9544.2 AMPS WEIGHT ON BIT 21 @ 8433 3 @ 8310 9.5 12.4 KLBS ROTARY RPM 80 @ 8306 75 @ 8428 78.4 78.0 RPM PUMP PRESSURE 2405 @ 8433 1757 @ 8374 2023.2 2048.9 PSI DRILLING MUD REPORT DEPTH 8436 / 7985 TVD MW 9.3 VIS 45 PV 10 YP 23 FL 5.0 Gels 10/14/15 CL- 32000 FC 1 SOL 5.0 SD Tr OIL 1/94 MBL 2.5 pH 10.0 Ca+ 80 CCI MWD SUMMARY INTERVAL TO TOOLS GAS SUMMARY (units) HIGH LOW AVERAGE CH GAS 114 @ 8283 16 @ 8306 38.9 .TRIP GAS TING GAS @ @ WIPER GAS 218 CHROMATOGRAPHY(ppm) SURVEY METHANE (C-1) 22926 @ 8283 3256 @ 8306 7772.3 CONNECTION GAS HIGH ETHANE (C-2) 38 @ 8283 0 @ 8369 3.4 AVG PROPANE (C-3) 5 @ 8283 0 @ 8240 0.4 CURRENT BUTANE (C-4) @ @ CURRENT BACKGROUND/AVG N/A PENTANE (C-5) @ @ HYDROCARBON SHOWS NONE INTERVAL LITHOLOGY/REMARKS GAS DESCRIPTION LITHOLOGY Major Sand/Sandstone, Tuffaceous Sandstone, Tuffaceous Siltstone, Tuffaceous Claystone, Volcanic Ash, Coal/Carbonaceous Shale. Minor Conglomeratic SandlConglomerate, Calcareous Tuff. PRESENT ,,,,,,,,,.SAND/SANDSTONE..........TUFFACEOUS SANDSTONE..........TUFFACEOUS SILTSTONE.......... LITHOLOGY Drill from 8232' to Total Depth of well at 8436'. Circulate bottoms up. Pump around Hi-Vis sweep. Circulate hole clean. Pull out of hole 5 stands from 8436' to DAILY 8120'. Pump dry job. Continue pulling out of hole to 5348'. (Worked through 20 sticky, ledged or tight spots while pulling out, but no serious problems wiping ACTIVITY hole). Run back in hole from 5348' to 8372'. (Kelly up 5 times and ream and work through tight zones on way back in at 6109', 6342', 6429', 6482' and SUMMARY 7639'). Wash down from 8372' to bottom at 8436'. Circulate bottoms up. Record 218 units of wiper gas. Pump around Hi-Vis sweep. Circulate Hi-Vis sweep. Check for flow. Pump dry job. Pull out of hole (SLM) from 8436'. Pull through sticky spot at 4946'. Kelly up and work and backream from 4793' to 4802'. Continue pulling out of the hole without tight hole incident to 1942'. Observe broken elevator safety latch pin. Replace latch pin. EPOCH PERSONNEL ON BOARD 4 DAILY COST ML: 3400 RW: 535 REPORT BY Craig Silva • Marathon Oil Company ~~~~~ Ninilchik Unit DAILY WELLSITE REPORT Paxton 2 REPORT FOR Mitch Burns /John Nicholson TE Feb 03, 2008 DEPTH 8436 PRESENT OPERATION Circulating and conditioning prior to deploying Weatherford's shuttle logging tools. ME 24:00 YESTERDAY 8436 24 HOUR FOOTAGE 0 CASING INFORMATION 7 5/8" @ 3902' DEPTH INCLINATION AZIMUTH VERTICAL DEPTH SURVEY DATA BIT INFORMATION INTERVAL CONDITION REASON NO. SIZE TYPE S/N JETS IN OUT FOOTAGE HOURS T/B/C PULLED 4 6.75 HCC 505X 7012959 5x11 3919 8436 4517 66.92 1-3-WT-A-X-1-CT-TD Total Depth of well DRILLING PARAMETERS HIGH LOW AVERAGE CURRENT AVG RATE OF PENETRATION @ @ FT/HR SURFACE TORQUE @ @ AMPS WEIGHT ON BIT @ @ KLBS ROTARY RPM @ @ RPM PUMP PRESSURE @ @ PSI DRILLING MUD REPORT DEPTH 8436 / 7985 ND MW 9.5 VIS 46 PV 10 YP 22 FL 4.8 Gels 10/14/15 CL- 31000 FC 1 SOL 6.5 SD Tr OIL 1/92 MBL 2.5 pH 9.9 Ca+ 80 CCI MWD SUMMARY INTERVAL TO TOOLS GAS SUMMARY (units) HIGH LOW AVERAGE DITCH GAS 228 @ 8436 (TG) 1 @ during shallow checks on tools 35 cite and cond TRIP GAS 228 CUTTING GAS @ @ WIPER GAS CHROMATOGRAPHY(ppm) SURVEY THANE (C-1) @ @ CONNECTION GAS HIGH ETHANE (C-2) @ @ AVG PROPANE (C-3) @ @ CURRENT BUTANE (C-4) @ @ CURRENT BACKGROUND/AVG 9 135 PENTANE (C-5) @ @ HYDROCARBON SHOWS INTERVAL LITHOLOGY/REMARKS GAS DESCRIPTION LITHOLOGY PRESENT LITHOLOGY Continue pulling out of hole (SLM) from 1942' to top of bottom hole assembly at 818'. (No correction on strap). Pull and stand back HWDP (and jars) to top of directional tools at 147'. Break, lay down and load off directional tools (crossover, flex joints, filter sub, MWD, short NMDC, stabilizer, motor, bit).. Install com line downlink recorded data before breaking down MWD tool. Nipple down and lay down BHI bypass valve manifold. Blow down mud lines. Clear and clean rig floor. Hold pre-job meeting with Weatherford on procedures and safety for rigging up and running wireline tools. Hang sheaves and rig up Weatherford's wireline running equipment. Pick up and make up Quad-Combo logging tool assembly. Load sources. Run logging assembly in hole. Continue running Quad- Combo wireline logging assembly in hole and tag bridge at 6678'. Try to work down past, but unable to get past bridge. Attempt to properly orient tool DAILY assembly calipers to log up from this point but failed after repeated attempts. Pull out of hole to 6611' and stick tools. Tool assembly stuck for 20 minutes. Pull ACTIVITY close to maximum on tool assembly (5870 Ibs) and free tools. Pull up to 5800' and orient calipers properly. Log up in open hole to casing shoe. Log to 3800' SUMMARY and pull assembly out of hole. Unload sources. Handle, break and lay down logging assembly. Rig down wireline running equipment and sheaves. Hold pre- job meeting on procedures and safety for handling Weatherford's shuttle logging system. Strap, drift, lay out and partially make Quad-Combo logging tools. Load, pick up and make up reamer, CLS, stabilizer, 5 joints of 3 1/2" drill pipe and lower latch. Pick up and make up inner string of Weatherford's Quad-Combo logging tools, upper latch and float. Install sources. Install, seat and latch up logging assembly in 3 1/2" drill pipe. Run shuttle logging assembly in hole to 182'. Pressure-flow check tool assembly. Run shuttle logging assembly in hole on 5"HWDP. (Pressure-flow check tool assembly at 722', 3820', 6115' and 8163' on way in, using staged 2,4 and 6 bpm flow rates). (Hole tight going in at 6030', 6203' and 6678'). Wash down from 8407' to bottom at 8436'. Circulate bottoms up and continue to clean and condition hole. Record 228 units of trip gas. EPOCH PERSONNEL ON BOARD 2 DAILY COST ML: 2050 RW: 535 Consulting: 1300 REPORT BY Craig Silva Marathon Oil Company ~~~,~~ NinilchikUnit DAILY WELLSITE REPORT J Paxton 2 REPORT FOR Mitch Burns /John Nicholson SATE Feb 04, 2008 DEPTH 8436 PRESENT OPERATION Waiting for new Quad-Combo shuttle assembly IME 24:00 YESTERDAY 8436 24 HOUR FOOTAGE 0 CASING INFORMATION 7 5/8" @ 3902' DEPTH INCLINATION AZIMUTH VERTICAL DEPTH SURVEY DATA BIT INFORMATION INTERVAL CONDITION REASON NO. SIZE TYPE S/N JETS IN OUT FOOTAGE HOURS T/B/C PULLED DRILLING PARAMETERS HIGH LOW AVERAGE CURRENT AVG RATE OF PENETRATION @ @ FT/HR SURFACE TORQUE @ @ AMPS WEIGHT ON BIT @ @ KLBS ROTARY RPM @ @ RPM PUMP PRESSURE @ @ PSI DRILLING MUD REPORT DEPTH 8436 17985 TVD MW 9.5 VIS 47 PV 10 YP 23 FL 5.0 Gels 10/15/17 CL- 31000 FC 1 SOL 6.5 SD Tr OIL 1/93 MBL 2.5 pH 9.7 Ca+ 80 CCI MWD SUMMARY INTERVAL TO TOOLS GAS SUMMARY (units) HIGH LOW AVERAGE DITCH GAS 67 @ post trip gas 2 @ at last circulation N/A TRIP GAS CUTTING GAS @ @ WIPER GAS CHROMATOGRAPHY(ppm) SURVEY HANE (C-1) @ @ CONNECTION GAS HIGH ANE (C-2) @ @ AVG PROPANE (C-3) @ @ CURRENT BUTANE (C-4) @ @ CURRENT BACKGROUND/AVG N/A PENTANE (C-5) @ @ HYDROCARBON SHOWS INTERVAL LITHOLOGY/REMARKS GAS DESCRIPTION LITHOLOGY PRESENT LITHOLOGY Continue to circulate and clean hole with Weatherford Logging Service Quad-Combo shuttle system in hole. Pull up hole to 8319'. Drop and pump down Messenger dart to engage, release, push out and deploy shuttle logging tools. Note that pump pressures remained low, and failed to match the expected profile and amount of increase that indicates when shear out and deployment conventionally occur. Unknown if seating plug was previously sheared but suspect tool had been pre-deployed. Assume full extension of tools and bottom of assembly at 8421'. Check for flow. Pump dry job. Blow down lines. Pull out of hole at a controlled 30' per minute rate, logging up with Quad-Combo assembly from 8421' to 3800'. Pull out of hole at normal rate from 3800' to top of 5" HWDP at 852'. Pull and stand back HWDP to top of shuttle at 303'. Break and lay down 3 1/2" drill pipe. Remove neutron sources. Obvious damage to the DAILY Quad-Combo logging string when looking at the bottom connection of the neutron tool. Pull and hang off logging assembly to assess damages. Note lower ACTIVITY 23.46' of the assembly (entire induction tool and all but 4' of the sonic tool) had been ripped away and left downhole. Inspect, break, lay down and load off SUMMARY remaining logging tools. More thorough assessment of tools to be done on catwalk. Blow down mud lines. Clear and clean rig floor. Cut (400') and slip drill line. Hold pre-job meeting with Weatherford on procedures and safety for rigging up and running wireline tools. Hang sheaves and rig up Weatherford's wireline running equipment. Pick up and make up a new Quad-Combo logging tool assembly. Load sources. Run logging assembly in hole. Continue running Quad- Combo wireline logging assembly in hole and tag bridge at 5880'. Try to work down past, but unable to get past bridge after several attempts. Pull assembly out of hole. Unload sources. Handle, break and lay down logging assembly. Rig down wireline running equipment and sheaves. Wait for Weatherford to travel to its main shop, assemble and make up a new set of shuttle specific logging tools (latches, floats, knuckles, connectors, rings), and then return to the rig. Service Topdrive, blocks, crown and carrier while waiting for Weatherford. EPOCH PERSONNEL ON BOARD 2 DAILY COST ML: 2050 RW: 535 Consulting: 1300 REPORT BY Craig Silva Marathon Oil Company ~! ~~ Ninilchik Unit DAILY WELLSITE REPORT ~ll Paxton 2 REPORT FOR Mitch Burns /John Nicholson ATE Feb 05, 2008 DEPTH 8436 PRESENT OPERATION Laying down logging tools and shuttle equipment IME 24:00 YESTERDAY 8436 24 HOUR FOOTAGE 0 CASING INFORMATION 7 5/8" @ 3902' DEPTH INCLINATION AZIMUTH VERTICAL DEPTH SURVEY DATA BIT INFORMATION INTERVAL CONDITION REASON NO. SIZE TYPE S/N JETS IN OUT FOOTAGE HOURS T/B/C PULLED DRILLING PARAMETERS HIGH LOW AVERAGE CURRENT AVG RATE OF PENETRATION @ @ FT/HR SURFACE TORQUE @ @ AMPS WEIGHT ON BIT @ @ KLBS ROTARY RPM @ @ RPM PUMP PRESSURE @ @ PSI DRILLING MUD REPORT DEPTH 8436 / 7985 TVD MW 9.5 VIS 48 PV 10 YP 21 FL 5.2 Gels 9/13!14 CL- 30000 FC 1 SOL 6.5 SD Tr OIL 1/93 MBL 2.5 pH 9.8 Ca+ 60 CCI MWD SUMMARY INTERVAL TO TOOLS GAS SUMMARY (units) HIGH LOW AVERAGE DITCH GAS 103 @ Trip gas at 8313 3 @ Deploying shuttle 33 Circulating and cleaning TRIP GAS 103 CUTTING GAS @ @ WIPER GAS CHROMATOGRAPHY(ppm) SURVEY HANE (C-1) @ @ CONNECTION GAS HIGH HANE (C-2) @ @ AVG PROPANE (C-3) @ @ CURRENT BUTANE (C-4) @ @ CURRENT BACKGROUND/AVG N/A PENTANE (C-5) @ @ HYDROCARBON SHOWS INTERVAL LITHOLOGY/REMARKS GAS DESCRIPTION LITHOLOGY PRESENT LITHOLOGY Continue to service rig while waiting for Weatherford Wireline Services to arrive at the rig with a rebuilt shuttle system. After WWS's return, briefly strap, drift, lay out and partially make up the Quad-Combo logging tools as a pre-check before running in the hole. Hold pre-job meeting on procedures and safety for handling the shuttle logging system. Re-load, pick up and make up the shuttle outer string (reamer, CLS, stabilizer, 5 joints of 3 1l2" drill pipe and lower latch). Pick up and make up the shuttle inner string (Quad-Combo logging tools, upper latch and Float). Load neutron tool sources. Install, seat and latch up logging assembly in 3 1/2" drill pipe. Make up to first joint of 5" HWDP. Run shuttle logging assembly in hole to 182'. Check pressure and flow parameters through tool assembly. Run shuttle logging assembly on 5" HWDP in hole to 836'. Continue running shuttle in hole on 5" drill pipe to 8266'. (Check pressure and flow DAILY parameters through tool assembly at 3900', 5900', 6690' and 8266' on way in, using staged 2,4 and 6 bpm flow rates, and blowing down lines before ACTIVITY continuing to run in). Wash down from 8266' to 8313' (at 115spm, 225gpm, 1200psi). Circulate bottoms up and continue to clean and condition hole. Record SUMMARY 103 units of trip gas. Pull up hole to 8195'. Drop and pump down Messenger dart (at 128spm). Observed a normal pressure-up profile on the anticipated stroke counts to demonstrate that the Messenger had engaged the top of the inner string, sheared out the seating pins, released the tools from the outer string and pushed the logging assembly out to a full deployment at 8300'. Reduced pump rate (to 42spm, 390psi) as tools were being deployed. Cease circulating. Check for flow. Pump dry job. Pull out of hole at controlled 30' per minute rate, logging up with Quad-Combo assembly from 8300' to 3600'. Pull out of hole at normal rate from 3600' to surface. Pull shuttle assembly out of hole to top of 5" HWDP. Pull and stand back HWDP to top of shuttle. Break and lay down 3 1/2" drill pipe. Remove neutron sources. Break, lay down and load off Quad-Combo logging tools and shuttle running equipment (upper and lower latches, float, CLS, stabilizer, reamer). Clear and clean rig floor. EPOCH PERSONNEL ON BOARD 3 DAILY COST ML: 2425 RW: 535 Consulting: 1300 REPORT BY Craig Silva ~J Marathon Oil Company ~~~~ Ninilchik Unit DAILY WELLSITE REPORT Paxton 2 REPORT FOR Mitch Burns I John Nicholson TE Feb 06, 2008 DEPTH 8436 PRESENT OPERATION Preparing to run in hole with open-ended 4 1/2" casing to facilitate wireline logging operations E 24:00 YESTERDAY 8436 24 HOUR FOOTAGE 0 CASING INFORMATION 7 5/8" @.3902' SURVEY DATA DEPTH INCLINATION AZIMUTH VERTICAL DEPTH BIT INFORMATION INTERVAL CONDITION REASON NO. SIZE TYPE S/N JETS IN OUT FOOTAGE HOURS T/B/C PULLED DRILLING PARAMETERS HIGH LOW AVERAGE CURRENT AVG RATE OF PENETRATION @ @ FT/HR SURFACETOROUE @ @ AMPS WEIGHT ON BIT @ @ KLBS ROTARY RPM @ @ RPM PUMP PRESSURE @ @ PSI DRILLING MUD REPORT DEPTH 8436 / 7985 TVD MW 9.5 VIS 48 PV 10 YP 22 FL 5.0 Gels 10/12/13 CL- 30000 FC 1 SOL 6.5 SD Tr OIL 1/93 MBL 2.5 pH 9.7 Ca+ 80 CCI MWD SUMMARY INTERVAL TO TOOLS GAS SUMMARY (units) HIGH LOW AVERAGE DITCH GAS 24 @ TG at 6772 2 @ pump shut down 8 while circulating TRIP GAS 24 CUTTING GAS @ @ WIPER GAS CHROMATOGRAPHY(ppm) SURVEY HANE (C-1) @ @ CONNECTION GAS HIGH ANE (C-2) @ @ AVG PROPANE (C-3) @ @ CURRENT BUTANE (C-4) @ @ CURRENT BACKGROUND/AVG N/A PENTANE (C-5) @ @ HYDROCARBON SHOWS INTERVAL LITHOLOGY/REMARKS GAS DESCRIPTION LITHOLOGY PRESENT LITHOLOGY Change out bails and elevators to run 4 1/2" casing. Hold pre-job meeting on procedures and safety for running casing. Run in hole with 4 1/2" casing (open ended) to 3902'. Circulate casing volume. Record 14 units maximum gas. Blow down all mud lines, pumps and Topdrive. Install man-rider control panel in DAILY derrick. Continue running in hole with 4 1l2" casing from 3902' to 6772'. Rig up swedge and circulate bottoms up (at 110spm, 480psi). Record 24 units of trip ACTIVITY gas. Blow down all mud lines. Hold pre-job meeting with Weatherford on procedures and safety for handling wireline logging tools. Pick up and make up SUMMARY Weatherford Wireline Services' MFT logging assembly and run in hole. Continue running MFT wireline logging assembly in hole and tag bridge at 7791'. Try to work down past, but unable to get past bridge after several attempts. Pull assembly up hole. Log out taking pressure points from 7632' to 6911'. Pull out of hole with MFT assembly. Handle, break and lay down logging assembly. Rig down wireline running equipment and sheaves. Clear and clean rig floor. Prepare tools and rig up to pick up and run in with 4 112" casing. EPOCH PERSONNEL ON BOARD 3 DAILY COST ML: 2425 RW: 535 Consulting: 1300 REPORT BY Craig Silva Marathon Oil Company ____,. ~~~~ Ninilchik Unit DAILY WELLSITE REPORT ~'~ Paxton 2 REPORT FOR Mitch Burns /John Nicholson 4TE Feb 07, 2008 DEPTH 8436 PRESENT OPERATION Picking up and running back in hole with 4 1/2" casing IME 24:00 YESTERDAY 8436 24 HOUR FOOTAGE 0 CASING INFORMATION 7 5/8" @ 3902' DEPTH INCLINATION AZIMUTH VERTICAL DEPTH SURVEY DATA BIT INFORMATION INTERVAL CONDITION REASON NO. SIZE TYPE S/N JETS IN OUT FOOTAGE HOURS T/B/C PULLED DRILLING PARAMETERS HIGH LOW AVERAGE CURRENT AVG RATE OF PENETRATION @ @ FT/HR SURFACE TORQUE @ @ AMPS WEIGHT ON BIT @ @ KLBS ROTARY RPM @ @ RPM PUMP PRESSURE @ @ PSI DRILLING MUD REPORT DEPTH 8436 / 7985 TVD MW 9.6 VIS 49 PV 10 YP 19 FL 5.2 Gels 10/12/ CL- 25000 FC 1 SOL 7.0 SD 0.15 OIL 1/92 MBL 5.0 pH 10.0 Ca+ 60 CCI MWD SUMMARY INTERVAL. TO TOOLS GAS SUMMARY (units) HIGH LOW AVERAGE DITCH GAS 68 @ WG at 8200 2 @ Circulating before POOH N/A TRIP GAS. CUTTING GAS @ @ WIPER GAS 68 CHROMATOGRAPHY(ppm) SURVEY HANE (C-1) @ @ CONNECTION GAS HIGH NANE (C-2) @ @ AVG PROPANE (C-3) @ @ CURRENT BUTANE (C-4) @ @ CURRENT BACKGROUND/AVG N/A PENTANE (C-5) @ @ HYDROCARBON SHOWS INTERVAL LITHOLOGYIREMARKS GAS DESCRIPTION LITHOLOGY PRESENT LITHOLOGY Hold pre-job meeting with Weatherford casing hands on procedures and safety for running 4 1/2" casing. Pick up and run in hole with 4 1/2" casing from 6772' to 8130'. Rig up swedge and circulate bottoms up. Record 68 units of wiper gas. Continue (another bottoms up) to circulate hole clean. Rig down swedge. Pull out of hole laying down 4 1/2" casing from 8130' to 7880'. Hold pre-job meeting with Weatherford wireline hands on procedures and safety for handling wireline logging tools. Pick up Weatherford Wireline Services' MFT logging assembly and run in hole inside the 4 1/2" casing. Continue running MFT wireline DAILY logging assembly in hole and hit stopping point at the bottom of casing string (7780'). Unable to get past 7780' after several attempts. Secure pack-off and ACTIVITY circulate past logging assembly to lubricate and provide an assist in pushing past the apparent obstruction at the bottom of the casing. Still unable to move SUMMARY MFT assembly past the stopping point at 7780'. Pull out of hole with MFT assembly. Handle, break and lay down logging assembly. Rig down wireline running equipment and sheaves. Clear and clean rig floor. Prepare to lay down casing. Hold pre-job meeting with Weatherford and Unique casing hands on procedures and safety for pulling 4 1!2" casing. Pull first 7 joints out of hole laying down 4 1/2" casing from 7880' to 7580'. Pump dry job. Continue pulling out of hole laying down casing from 7580' to surface. Rabbit through last joints to check clearance. Break and lay down mule shoe. Slight indentation in bottom rim of mule shoe but did not appear significant enough to have prevented MFT tools from sliding past. Pick up and make up new mule shoe on first joint of casing. Pick up, make up and run in hole from surface to 744' with 4 1/2" casing. EPOCH PERSONNEL ON BOARD 3 DAILY COST ML: 2525 RW: 535 Consulting: 1300 REPORT BY Craig Silva • Marathon Oil Company ~~~~ NinilchikUnit DAILY WELLSITE REPORT Paxton 2 REPORT FOR John Nicholson /Dan Byrd DATE Feb O8, 2008 DEPTH 8436 PRESENT OPERATION Wireline logging TIME 24:00 YESTERDAY 8436 24 HOUR FOOTAGE 0 CASING INFORMATION 7 5/8" @ 3902' DEPTH INCLINATION AZIMUTH VERTICAL DEPTH SURVEY DATA BIT INFORMATION INTERVAL CONDITION REASON NO. SIZE TYPE S/N JETS IN OUT FOOTAGE HOURS T/B/C PULLED DRILLING PARAMETERS HIGH LOW AVERAGE CURRENT AVG RATE OF PENETRATION @ @ FT/HR SURFACE TORQUE @ @ AMPS WEIGHT ON BIT @ @ KLBS ROTARY RPM @ @ RPM PUMP PRESSURE @ @ PSI DRILLING MUD REPORT DEPTH MW VIS PV YP FL Gels CL- FC SOL SD OIL MBL pH Ca+ CCI MWD SUMMARY INTERVAL TO TOOLS GAS SUMMARY (units) HIGH LOW AVERAGE DITCH GAS 55 @ TG at 8130' 1 @ at pumps shut down 27 Circulating and cleaning TRIP GAS 55 CUTTING GAS @ @ WIPER GAS CHROMATOGRAPHY(ppm) SURVEY HANE (C-1) @ @ CONNECTION GAS HIGH ANE (C-2) @ @ AVG PROPANE (C-3) @ @ CURRENT BUTANE (C-4) @ @ CURRENT BACKGROUND/AVG N/A PENTANE (C-5) @ @ HYDROCARBON SHOWS INTERVAL LITHOLOGY/REMARKS GAS DESCRIPTION LITHOLOGY PRESENT LITHOLOGY Pick up, make up and run 4 1/2" casing in hole from 744' to 5822' with 4 1/2" casing. Briefly break circulation. Blow down mud lines. Continue to pick up, make up and run 4 1/2" casing in hole from 5822' to 8130'. Circulate bottoms up and circulate hole clean at 8130'. Record 55 units of trip gas. Pull out of hole from 8130' to 7883'. Hold pre-job meeting with Weatherford Wireline Services' loggers on procedures and safety for handling wireline logging tools. Hang sheaves and rig up Weatherford's wireline running equipment. Pick up, make up and run in hole MFT logging assembly inside the 4 1/2" casing. Continue running in DAILY MFT wireline logging assembly in hole to 8156'. Log up with formation tester, taking pressure points from 8130' to7903'. Pull out of hole with MFT assembly. ACTIVITY Handle and lay down logging assembly. Rig down wireline running equipment and sheaves. Clear and clean rig floor. Prepare to lay down casing. Hold pre- SUMMARY job meeting with Weatherford and Unique casing hands on procedures and safety for pulling 4 1/2" casing. Check for flow. Pump dry job. Blow down mud lines. Pull out of hole laying down 4 1/2" casing from 7883' to 3969'. Hold pre-job meeting with WWS loggers on procedures and safety for handling wireline logging tools. Hang sheaves and rig up Weatherford's wireline running equipment. Pick up, make up and run in hole MFT logging assembly inside the 4 1/2" casing. Continue running in MFT wireline logging assembly in hole to 5741'. Log up with formation tester, taking pressure points from 5741' to 4315'. Continue logging up. EPOCH PERSONNEL ON BOARD 3 DAILY COST ML: 2425 RW: 535 Consulting: 1300 REPORT BY Craig Silva • Marathon Oil Company ~~ i R Ninilchik Unit DAILY WELLSITE REPORT ((\,~~/lijr,,,,,,1/ Paxton 2 REPORT FOR John Nicholson /Dan Byrd DATE Feb 09, 2008 DEPTH 8436 PRESENT OPERATION Preparing for clean out run TIME 24:00 YESTERDAY 8436 24 HOUR FOOTAGE 0 CASING INFORMATION 7 5/8" @ 3902' DEPTH INCLINATION AZIMUTH VERTICAL DEPTH SURVEY DATA BIT INFORMATION INTERVAL CONDITION REASON NO. SIZE TYPE S/N JETS IN OUT FOOTAGE HOURS T!B/C PULLED DRILLING PARAMETERS HIGH LOW AVERAGE CURRENT AVG RATE OF PENETRATION @ @ FT/HR SURFACETOROUE @ @ AMPS WEIGHT ON BIT @ @ KLBS ROTARY RPM @ @ RPM PUMP PRESSURE @ @ PSI DRILLING MUD REPORT DEPTH 8436 / 7985 TVD MW 9.5 VIS 46 PV 9 YP 17 FL 6.0 Gels 8/10/ CL- 24000 FC 1 SOL 6.5 SD 0.2 OIL 1/93 MBL 6.0 pH 10.0 Ca+ 60 CCI MWD SUMMARY INTERVAL TO TOOLS GAS SUMMARY (units) HIGH LOW AVERAGE DITCH GAS @ @ No circulation last 24 hours TRIP GAS CUTTING GAS @ @ WIPER GAS CHROMATOGRAPHY(ppm) SURVEY THANE (C-1) @ @ CONNECTION GAS HIGH HANE (C-2) @ @ AVG PROPANE (C-3) @ @ CURRENT BUTANE (C-4) @ @ CURRENT BACKGROUND/AVG PENTANE (C-5) @ @ HYDROCARBON SHOWS INTERVAL LITHOLOGY/REMARKS GAS DESCRIPTION LITHOLOGY PRESENT LITHOLOGY Continue logging up with MFT formation tester, taking pressure points from 4315' to 4063'. Pull out of hole with MFT assembly. Handle, break and lay down MFT logging assembly. Rig down Weatherford Wireline Services' running equipment (entry guide, sheaves, securing shackles, lubricator, pack-off) and sheaves. Clear and clean rig Floor. Prepare to lay down casing. Rig up and make up Weatherford casing handling tools. Install long bails and lay down line. Install casing elevators. Hold pre-job meeting with Weatherford and Unique casing hands on procedures and safety for pulling 4 1/2" casing. Check for flow. Blow down mud lines. Pull out of hole laying down 4 1/2" casing from 3969' to surface. Break and lay down muleshoe. Rig down casing handling tools. Clear DAILY and clean rig floor. Change out bails and elevators, and rig up handling tools to run 4" drill pipe. Blow down steam system. Arrange portable heaters. Pull wear ACTIVITY bushing. Set test joint. Rig up surface equipment to test BOPS. Attempt first set of BOP tests but observe that some valves are frozen or potentially frozen. The SUMMARY frozen valves had resulted from a lack of steam heat after the boiler went down. Suspend BOP testing until freezing problems are remedied. Drain stack. Blow down choke manifold, choke lines, kill line. Re-blow down mud lines. Thaw frozen valves. Work on air slips. Clean rig floor. Fire boiler back up, vent out air trapped in steam lines and generate steam around rig. Re-rig surface equipment to test BOPS. Test all BOPE (annular, dart and floor valves, upper and lower Topdrive IBOPs, inside and outside kill valves, check valve, manual choke, HCR, upper pipe ram, lower pipe ram, blind ram, CMVs 1-12) to 250psi Low/2500psi High for 10 minutes. Do accumulator performance test (before last test group of lower pipe ram and blind ram). Test gas alarms. Blow down and rig down test equipment. Pull test joint. Install wear bushing. Clean rig floor. Prepare to pick up and make up clean out assembly (bit, bit sub, stabilizer, drill collars) for clean out run. EPOCH PERSONNEL ON BOARD 3 DAILY COST ML: 2425 RW: 535 Consulting: 1300 REPORT BY Craig Silva • Marathon Oil Company ~~ V NinilchikUnit DAILY WELLSITE REPORT Paxton 2 REPORT FOR John Nicholson /Dan Byrd ATE Feb 10, 2008 DEPTH 8436 PRESENT OPERATION Running in hole with 4 1/2" liner as per Marathon TIME 24:00 YESTERDAY 8436 24 HOUR FOOTAGE 0 CASING INFORMATION 7 5/8" @ 3902' DEPTH INCLINATION AZIMUTH VERTICAL DEPTH SURVEY DATA BIT INFORMATION INTERVAL CONDITION REASON NO. SIZE TYPE S/N JETS IN OUT FOOTAGE HOURS T/BIC PULLED 5 6.75 HCC STX-1 5124225 3x20 8400 8400 0 NIA NG Clean out run only DRILLING PARAMETERS HIGH LOW AVERAGE CURRENT AVG RATE OF PENETRATION @ @ FT/HR SURFACETOROUE @ @ AMPS WEIGHT ON BIT @ @ KLBS ROTARY RPM @ @ RPM PUMP PRESSURE @ @ PSI DRILLING MUD REPORT DEPTH 8436 / 7985 TVD MW 9.5 VIS 46 PV 9 YP 17 FL 6.0 Gels 8/101 CL- 24000 FC 1 SOL 6.5 SD 0.2 OIL 1/93 MBL 6.0 pH 10.0 Ca+ 60 CCI MWDSUMMARY INTERVAL TO TOOLS GAS SUMMARY (units) HIGH LOW AVERAGE DITCH GAS 174 @ TG at 8400 5 @ last pumping before POOH 75 while circ and cond TRIP GAS 174 CUTTING GAS @ @ WIPER GAS CHROMATOGRAPHY(ppm) SURVEY 'THANE (C-1) @ @ CONNECTION GAS HIGH ETHANE (C-2) @ @ AVG PROPANE (C-3) @ @ CURRENT BUTANE (C-4) @ @ CURRENT BACKGROUND/AVG N/A PENTANE (C-5) @ @ HYDROCARBON SHOWS INTERVAL LITHOLOGY/REMARKS GAS DESCRIPTION LITHOLOGY PRESENT LITHOLOGY Pick up, make up and run in hole clean out assembly (6 314"mill tooth bit, bit sub, stabilizer, four 4 3/4" drill collars, crossover) to 134'. Continue running in hole on 4" HWDP and 4" drill pipe to 3902'. Fill pipe and blow down mud lines. Continue running in hole from 3902' to 7676'. Wash and ream from 7676' to 8400'. Circulate bottoms up and circulate and condition hole. Record 174 units of trip gas. Check for flow. Pump dry job. Blow down mud lines. Pull out of hole DAILY with clean out assembly. (Pulled tight from 7884' to 7876'). Pull from 8400' to 806'. Pull from 806' to surface laying down HWDP, jars and clean out run ACTIVITY assembly (crossover, drill collars, stabilizer, bit sub, bit). Change out saver sub and grabber dies. Pick up, make up and lay down cementing head. Clear and SUMMARY clean rig floor. Remove drill pipe elevators and short bails. Install long bails and 4 112" casing elevators. Pickup, install and rig up Weatherford casing running tongs, slips and handling tools. Rig up tall snub post. Install fill-up line, circulating line and 4 1/2" floor safety valve. Set returns to trip tank. Hold pre-job meeting with Weatherford hands on procedures and safety for running 4 1 /2" liner. Liner joints have been racked and tallied in the correct order on pipe racks. Run in hole 4 1/2" completion liner as per Marathon program. Pickup, clean threads, Bakerlok, make up and run in shoe tract to 87' and check Floats. Continue running 4 1/2" liner in hole to 2399'. EPOCH PERSONNEL ON BOARD 2 DAILY COST ML: 2425 RW: 535 REPORT BY Craig Silva Marathon Oil Company ~~~ ~J Ninilchik Unit DAILY WELLSITE REPORT Paxton 2 REPORT FOR John Nicholson /Dan Byrd DATE Feb 11, 2008 DEPTH 8436 PRESENT OPERATION Laying down liner running tool TIME 24:00 YESTERDAY 8436 24 HOUR FOOTAGE 0 CASING INFORMATION 4 1/2" @ 8385' DEPTH INCLINATION AZIMUTH VERTICAL DEPTH SURVEY DATA BIT INFORMATION INTERVAL CONDITION REASON NO. SIZE TYPE S/N JETS IN OUT FOOTAGE HOURS T/B/C PULLED DRILLING PARAMETERS HIGH LOW AVERAGE CURRENT AVG RATE OF PENETRATION @ @ FT/HR SURFACETOROUE @ @ AMPS WEIGHT ON BIT @ @ KLBS ROTARY RPM @ @ RPM PUMP PRESSURE @ @ PSI DRILLING MUD REPORT DEPTH 8436 / 7985 TVD MW 9.6 VIS 43 PV 8 YP 19 FL 6.4 Gels 7/9/ CL- 24500 FC 1 SOL 6.5 SD 0.2 OIL 1/93 MBL 6.0 pH 9.5 Ca+ 80 CCI MWDSUMMARY INTERVAL TO TOOLS GAS SUMMARY (units) HIGH LOW AVERAGE DITCH GAS 42 @ TG at 8385 0 @ Circulating around KCL Fluid 14 Circulating before cementing TRIP GAS 42 CUTTING GAS @ @ WIPER GAS CHROMATOGRAPHY(ppm) SURVEY HANE (C-1) @ @ CONNECTION GAS HIGH HANE (C-2) @ @ AVG PROPANE (C-3) @ @ CURRENT BUTANE (C-4) @ @ CURRENT BACKGROUND/AVG N/A PENTANE (C-5) @ @ HYDROCARBON SHOWS INTERVAL LITHOLOGYIREMARKS GAS DESCRIPTION LITHOLOGY PRESENT LITHOLOGY Continue running 4 1/2" liner in hole as per Marathon program from 2399' to 3888' Qust inside shoe). Rig up swage to circulate through liner. Circulate 1414 strokes (65.89 bbls at 84spm, 260psi). Record 20 units of trip gas Blow down lines. Continue running 4 1/2" liner in hole from 3888' to 4669'. Make up circulating swage and circulate bottoms up. Record 20 units of trip gas. Continue to circulate and clean hole (8115 total strokes, 378.12 bbls, at 90spm, 310psi). Rig down Weatherford casing running equipment. Change out bails and elevators to handle 4" drill pipe. Clear and clean rig floor. Pick up and make up liner hanger. Run the 4 1/2" liner section in the hole on 4" drill pipe to 6504'. Fill pipe (441 strokes) Continue running liner on 4" drill pipe to 7222'. Circulate 3061strokes (143.00 bbls, at 82spm, 340psi). Record 22 units maximum gas. Continue running liner on 4" drill pipe to 8386'. (Work past tight spots at 7844' and 8336' to 8348'). Circulate bottoms up. Record 42 units of trip gas. Continue to circulate and clean well. Install Baker cementing head and lines. Head has plug installed and wash up tee. BJ begins bulk mixing cement (200+ bbls) in pods. Continue to circulate and clean well (for 11814 strokes total, 550.48 bbls, at 71-91spm, 356-751 psi). Switch from rig pumps to BJ pumping unit and cement lines Pump 3.1 bbls of water and pressure test lines to 4415psi. Mix and pump 20.0 bbls of MCS-4 10.Oppg sweep (using 19.09 bbls of mix water), and follow with 210.0 bbls of 10.5ppg cement slurry (395 sacks of Class G cement plus DAILY accelerator chemicals mixed with 116 bbls water for 12.361 gal/sk to yield 2.987 cuft/sk). (Note: shut down at 130 total bbls pumped to reprime missing pump and then restart pumping of slurry). Close valve to head and open up wash-up valve. Pump 12.6 bbls water until returns are clean. Close wash-up valve and SUMMARY open to head. Drop plug and pump out with 6.4 bbls of water. Displace cement with 100.0 bbls of 6% KCL fluid plus 18.6 bbls of water at a normal rate of 4- 5bpm (for a total displacement of 125.0 bbls, including shoe joint of 1.2 bbls). Slow pump rate to 1-2 bpm after 36.5 bbls to see the pickup of liner plug at 43.6 bbls and then pump at normal rate till slowing one last time to 1 bpm at 125 total bbls to bump plug. Continue to pressure up past expected bump pressure and determine plug bumped at 2055psi. Note that plug bump was not immediately detected, so continued to pressure up to 2659psi total with an additional 6.0 bbls of water pumped (to 131.0 bbls total). Bleed off and check Floats. Pressure up to release and set hanger and do not detect release at anticipated 1700psi. Continue to pressure up to 3011 psi without release. Bleed all the way back and pressure up second time to 3505psi without detectable results. Again bleed all the way back and pressure up for third time to 4026 psi without detectable results. Bleed all the way back and rig up to perform a mechanical release. Slack off with liner at 8385', work left hand rotation into the drill string as per Baker to activate secondary release mechanism, pressure up to 294psi and successfully release and pull out of liner hanger and seal assembly. Bleed off after unstinging from hanger. Clear cementing lines. Briefly organize rig floor. Switch back to rig pumps. Circulate out. Record 14 units maximum gas. Return contaminated MCS-4 sweep and an estimated 25 bbls of cement to surface. Continue to circulate (7390 strokes total, at 150spm, 610psi). Rig down and lay down cementing head. Make drill pipe up to Topdrive. Pump dry job. Blow down lines. Pull out of hole from 8385' laying down 4" drill pipe. Handle, break and lay down running tool at surface. ~OCH PERSONNEL ON BOARD 2 DAILY COST ML: 2425 RW: 535 REPORT BY Craig Silva Marathon Oil Company ~~~~~ NinilchikUnit DAILY WELLSITE REPORT Paxton 2 REPORT FOR Dan Byrd DATE Feb 12, 2008 DEPTH 8436 PRESENT OPERATION Preparing to set ZXP packer TIME 24:00 YESTERDAY 8436 24 HOUR FOOTAGE 0 CASING INFORMATION 4 1/2" @ 8385' DEPTH INCLINATION AZIMUTH VERTICAL DEPTH SURVEY DATA BIT INFORMATION INTERVAL CONDITION REASON NO. SIZE TYPE S/N JETS IN OUT FOOTAGE HOURS T/B/C PULLED DRILLING PARAMETERS HIGH LOW AVERAGE CURRENT AVG RATE OF PENETRATION @ @ FT/HR SURFACETOROUE @ @ AMPS WEIGHT ON BIT @ @ KLBS ROTARY RPM @ @ RPM PUMP PRESSURE @ @ PSI DRILLING MUD REPORT DEPTH In Casing MW 9.6 VIS 43 PV 8 YP 19 FL 6.4 Gels 7/9/ CL- 24500 FC 2 SOL 6.5 SD 0.2 OIL 1193 MBL 6.0 pH 9.5 Ca+ 80 CCI MWD SUMMARY INTERVAL TO TOOLS GAS SUMMARY (units) HIGH LOW AVERAGE DITCH GAS 5 @ TG in casing at 3685 0 @ In casing N/A TRIP GAS 5 CUTTING GAS @ @ WIPER GAS CHROMATOGRAPHY(ppm) SURVEY HANE (C-1) @ @ CONNECTION GAS HIGH HANE (C-2) @ @ AVG PROPANE (C-3) @ @ CURRENT BUTANE (C-4) @ @ CURRENT BACKGROUNDIAVG N/A PENTANE (C-5) @ @ HYDROCARBON SHOWS INTERVAL LITHOLOGY/REMARKS GAS DESCRIPTION LITHOLOGY PRESENT LITHOLOGY Finish laying down running tool. Continue waiting on cement. Pick up, break and lay down cementing head. Spray and flush BOPS. Blow down all mud lines, choke and kill lines and choke manifold. Service carrier, Topdrive, blocks, crown and pipe spinner. Clean out trip tank and cellar. Clean out mud dump lines. Haul off all surface mud. Begin cleaning pits. Install guard on Topdrive gooseneck. Remove snow and ice from work areas around rig. Work on manriders. DAILY Adjust kick rollers. Tighten all brake block bolts. Prep #3 mud pump to be taken off line. Finish cleaning pits. Mix 200 bbls of 6% KCL brine. Change hoses on ACTIVITY elevators. Remove, re-plumb and rebuild old hydraulic line hoses for the manriders. Pick up and make up polish mill assembly and run in hole to 3412'. SUMMARY Continue waiting on cement. Run in hole and tag top of 4 1/2" liner at 3685'. Polish liner top (to 3686') and clean out receptacle. Circulate bottoms up and circulate clean. Record 5 units of trip gas in casing. Check for flow. Mix and pump dry job. Blow down mudlines. Pull out of hole with 4" drill pipe and polish mill assembly. Lay down cross-over mills. Hold pre-job meeting on safety and procedures for running and setting packer. Pick up and make up tie-back assembly (with liner-top ZXP packer). Run in hole with packer on tie-back seal running tool. Locate liner top at 3685'. EPOCH PERSONNEL ON BOARD 1 DAILY COST ML: 900 RW: 535 REPORT BY Craig Silva • Marathon Oil Company ~! i ~~ NinilchikUnit DAILY WELLSITE REPORT j#l~(j.._l~! Paxton 2 REPORT FOR John Nicholson /Dan Byrd DATE Feb 13, 2008 DEPTH 8436 PRESENT OPERATION Preparing to set tree TIME 24:00 YESTERDAY 8436 24 HOUR FOOTAGE 0 CASING INFORMATION 4 1/2" @ 8385' DEPTH INCLINATION AZIMUTH VERTICAL DEPTH SURVEY DATA BIT INFORMATION INTERVAL CONDITION REASON NO. SIZE TYPE SIN JETS IN OUT FOOTAGE HOURS T/B/C PULLED DRILLING PARAMETERS HIGH LOW AVERAGE CURRENT AVG RATE OF PENETRATION @ @ FT/HR SURFACETOROUE @ @ AMPS WEIGHT ON BIT @ @ KLBS ROTARY RPM @ @ RPM PUMP PRESSURE @ @ PSI DRILLING MUD REPORT DEPTH Surface MW 8.6 VIS 28 PV 1 YP 1 FL Gels CL- 31000 FC KCL Brine SOL SD OIL MBL pH 8.3 Ca+ CCI MWD SUMMARY INTERVAL TO TOOLS GAS SUMMARY (units) HIGH LOW AVERAGE DITCH GAS 3 @ In casing displacing 0 @ In casing before pumps off 1 TRIP GAS 3 CUTTING GAS @ @ WIPER GAS CHROMATOGRAPHY(ppm) SURVEY HANE (C-1) @ @ CONNECTION GAS HIGH 'HANE (C-2) @ @ AVG PROPANE (C-3) @ @ CURRENT BUTANE (C-4) @ @ CURRENT BACKGROUND/AVG N/A PENTANE (C-5) @ @ HYDROCARBON SHOWS INTERVAL LITHOLOGY/REMARKS GAS DESCRIPTION LITHOLOGY PRESENT LITHOLOGY Rig up BJ cementers to set packer. Test lines, seals and liner cap to 5000psi for 5 minutes. Bleed off pressure and prepare to set liner tie-back packer. Position top of packer at 3667'. Drop setting ball. Wait 12 minutes. Pump and pressure up and shear rupture disk at 4500psi to set packer. Release from liner tie-back. Had good indications that the packer was set at 4000psi. Pump dry job. Pull out of hole laying down 4" drill pipe to 2243'. Test seal on 4 1/2" liner to 1500psi for 30 minutes. Blow down mud lines. Continue pulling out of hole laying down 4" drill pipe. Make service breaks on tie-back seal running tool and lay down. Clean and clear rig floor. Pull wear ring. Lay down all pipe handling tools. Change bails and elevators. Secure rig tongs and pipe spinner. Rig up Weatherford to run 4 1/2" tubing. Drift stack with tubing hanger. Tie back tugger. Hold pre-job meeting on procedures and safety for running tubing. Pick up and make up seal assembly for 4 1/2" tubing. Run 4 1/2" tubing in hole as per Marathon's program to 1241.51'. Rig up Pollard Oilfield Service to do banding of control line. Hang sheave for running chemical injection line. Rig up control line. Make up injection mandrel and attach and test line. Continue running in 4 1/2" DAILY tubing from 1241' to 3667'. Lay down 2 joints. Pick up and make up pups reach bottom of seal bore receptacle (at 3674'). Sting into top of the packer seal bore ACTIVITY (at 3667') and space out. Pull back out to 3660'. Record up weight and down weight. Install landing joint and make up with Hydratongs. Make up circulating SUMMARY head to top of landing joint. Make up lines for displacing to circulating swage. Rig down Pollard banding equipment. Run injection line through hanger and then cut and tie off. Rig down and load off Weatherford hydraulic tongs, power slips and other tubing-casing handling equipment and tools. Load remaining equipment off of rig floor. Begin circulating to displace well. (Calculated displacement volume is 152 bbls). Pump 26 bbls of Safe Clean spacer, then follow with with 175 bbls of completion fluid (6% KCL brine mixed with Conqor 303 rust inhibitor and SMB). Pump 201 total bbls. Sting back into packer to base of seal bore receptacle and land and set hanger. Pump 6 strokes to pressure up and test packer seal to 500psi for 10 minutes. Test hanger body seals to 5000psi for 10 minutes. Blow down and rig down lines. Back out and lay down hanger landing tool. Rig down and lay down sheave for running chemical injection line and spool back unused line. Lay down elevators and long bails. Clear rig Floor. Flush and blow down choke manifold. Set BPV. Lay down mousehole. Change out BOP rams from 4" to 5" and function test. Flush and blow down all remaining surface equipment (mud pumps, stack, choke and kill lines, cementing lines, Topdrive, poorboy, stand pipe manifold and lines to pits). EPOCH PERSONNEL ON BOARD 1 DAILY COST ML: 900 RW: 535 REPORT BY Craig Silva Marathon Oil Company NinilchikUnit DAILY WELLSITE REPORT ~i ~~J ~Jl Paxton 2 REPORT FOR John Nicholson /Dan Byrd DATE Feb 14, 2008 DEPTH 8436 PRESENT OPERATION General rig down and move operations TIME 24:00 YESTERDAY 8436 24 HOUR FOOTAGE 0 CASING INFORMATION 4 1/2" @ 8385' DEPTH INCLINATION AZIMUTH VERTICAL DEPTH SURVEY DATA BIT INFORMATION INTERVAL CONDITION REASON NO. SIZE TYPE S/N JETS IN OUT FOOTAGE HOURS T/B/C PULLED DRILLING PARAMETERS HIGH LOW AVERAGE CURRENT AVG RATE OF PENETRATION @ @ FT/HR SURFACETOROUE @ @ AMPS WEIGHT ON BIT @ @ KLBS ROTARY RPM @ @ RPM PUMP PRESSURE @ @ PSI DRILLING MUD REPORT DEPTH Surface MW 8.6 VIS 28 PV 1 YP 1 FL Gels CL- 31000 FC KCL Brine SOL SD OIL MBL pH 8.3 Ca+ CCI MWD SUMMARY INTERVAL TO TOOLS GAS SUMMARY (units) HIGH LOW AVERAGE DITCH GAS @ @ TRIP GAS CUTTING GAS @ @ WIPER GAS CHROMATOGRAPHY(ppm) SURVEY THANE (C-1) @ @ CONNECTION GAS HIGH i HANE (C-2) @ @ AVG PROPANE (C-3) @ @ CURRENT BUTANE (C-4) @ @ CURRENT BACKGROUND/AVG PENTANE (C-5) @ @ HYDROCARBON SHOWS INTERVAL LITHOLOGY/REMARKS GAS DESCRIPTION LITHOLOGY PRESENT LITHOLOGY Rig down drip pan, turnbuckles, fill-up line, trip tank line, flowline, and choke and kill lines. Nipple down c heck and kill valves, spacer spool, BOP stack, and DAILY DSA. Load off BOP stack. Clean and inspect gas buster. Haul off excess fluid. Clean pits and sump. Pre pare and install the tree. Remove BPV. Install 2- ACTIVITY ~^'ay check valve. Test void to 5000psi for 10 minutes. Test tree to SOOOpsi for 10 minutes. Pull 2-way check valve and reinstall BPV. Begin rig down of all SUMMARY Glacier No.1 rig components for move to Grassim Oskolkoff #7. EPOCH PERSONNEL ON BOARD 1 DAILY COST ML: 900 Rig Down: 2025 REPORT BY Craig Silva