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206-144
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:Wallace, Chris D (OGC) To:AOGCC Records (CED sponsored) Subject:FW: Monitor: PWI OPI-02 (PTD #206144) IA pressure trends Date:Monday, January 12, 2026 11:36:43 AM Attachments:image001.png OPI-2 Schematic with patch 4-17-23.pdf From: Chris Casey - (C) <chris.casey@hilcorp.com> Sent: Sunday, January 11, 2026 8:47 AM To: Wallace, Chris D (OGC) <chris.wallace@alaska.gov> Cc: Regg, James B (OGC) <jim.regg@alaska.gov>; Ryan Thompson <Ryan.Thompson@hilcorp.com>; Alaska NS - Wells Integrity <AKNSWellsIntegrity@hilcorp.com>; Keith Lopez <Keith.Lopez@hilcorp.com>; Ryan Rupert <Ryan.Rupert@hilcorp.com> Subject: Monitor: PWI OPI-02 (PTD #206144) IA pressure trends Mr. Wallace, Produced Water Injector OPI-02 (PTD #206144) IA pressure has been trending down with no signs of communication the Tbg or OA. The IA passed a 4-year AOGCC MIT-IA on 03/20/2025 to 1590 psi. At this time, we will increase the IAP for further monitoring purposes. This email is to notify you we will continue to monitor and make Under Evaluation if we suspect IA communications. Please respond with any questions. Chris CaseyHilcorp Alaska LLCField Well IntegrityAKI/MPU/WNS chris.casey@hilcorp.com O: (907) 685-1494 C: (907) 242-1021Alt: Steve Soroka Hilcorp North Slope, LLC 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, please immediately notify us by return email or telephone if the sender's phone number is listed above, then promptly and permanently delete this message. While all reasonable care has been taken to avoid the transmission of viruses, it is the responsibility of the recipient to ensure that theonward transmission, opening, or use of this message and any attachments will not adversely affect its systems or data. No responsibility is accepted by the company in this regard and the recipient should carry out such virus and other checks as it considers appropriate. Well: OPI-02 4,000 300 3,900 290 3,800 3,700 280 3,600 270 3,500 260 3,400 3,300 250 3,200 240 3,100 230 3,000 2,900 220 2,800 210 2,700 200 2,600 2,500 190 TIO Plot 2,400 180 2,300 f Tubing 170 —On 2,200 .Q 160 ■ Bleed 2,100 3 * Operable N 2,000 150 } Not Oper 1,900 140 , ♦ Under Eval 1,800 —A*— Man. IA 1,700 130 -A Man. OA 1,600 120 - Man. OOA 1500 - Man. OOOA no - o Man. WHT 1,400 1,300 100 1,200 90 1,100 80 1,000 900 70 800 60 700 50 600 500 40 400 30 300 20 200 100 10 12/08/25 12/15/25 12t 25 12/29/25 01/05/26 10-3/4" 45.5 ppf Casing, 2533' MD, 2022' TVD, 65º Inc7-5/8" 29.7 ppf IntermediateCasing, 6696' MD, 3578' TVD, 85º Inc4-½” 12.6 ppf Production Tubing3-½” 9.2 ppfProduction Liner, 12,711' MD, 3,599' TVDAHC Retr. Packer, 5796' MD, 3404' TVD 69º IncConfidentialGC 04/17/23Nikaitchuq Field – Oliktok Point PadAs Completed04/17/232164' MD, 1850' TVD, 63º Inc - 4-½” x 1" KBMG GLM, 2,000 psi A to T shear valve2066' MD 1801' TVD, 57º Inc - 3.81" X-nipple for possible injection valve5809' MD, 3408' TVD, 70º Inc - 3.725" XN Nipple (inserted Nipple reducer 2-7/8" 6.4# XN Style Nipple with 2.205" NoGo)5739' MD, 3383' TVD, 67º Inc - 3.81" X-nipple VIT, 3 joints, 4-½” x 6", approx 102'OPI-2 Injector (Conversion to Injection)6573' MD, 3568' TVD, 85.7º Inc – Wireline Entry Guide Patch ID – 2.992" and is 31.72' OAL Patch set April 2023Top and bottom element depth – 5592' to 5623' MD MEMORANDUM State of Alaska Alaska Oil and Gas Conservation Commission DATE:Tuesday, April 22, 2025 SUBJECT:Mechanical Integrity Tests TO: FROM:Brian Bixby P.I. Supervisor Petroleum Inspector NON-CONFIDENTIAL Hilcorp Alaska, LLC I-2 OLIKTOK POINT I-2 Jim Regg InspectorSrc: Reviewed By: P.I. Suprv Comm ________ JBR 04/22/2025 I-2 50-029-23326-00-00 206-144-0 W SPT 3404 2061440 1500 650 650 649 649 200 200 200 200 4YRTST P Brian Bixby 3/21/2025 30 MinPretestInitial15 Min Well Name Type Test Notes: Interval P/F Well Permit Number: Type Inj TVD PTD Test psi API Well Number Inspector Name:OLIKTOK POINT I-2 Inspection Date: Tubing OA Packer Depth 950 1660 1603 1590IA 45 Min 60 Min Rel Insp Num: Insp Num:mitBDB250321141741 BBL Pumped:0.7 BBL Returned:0.7 Tuesday, April 22, 2025 Page 1 of 1 9 9 9 9 9 9 9 999 9 9 9 9 9 9 James B. Regg Digitally signed by James B. Regg Date: 2025.04.22 14:58:48 -08'00' MEMORANDUM State of Alaska Alaska Oil and Gas Conservation Commission DATE:Monday, May 22, 2023 SUBJECT:Mechanical Integrity Tests TO: FROM:Bob Noble P.I. Supervisor Petroleum Inspector NON-CONFIDENTIAL Eni US Operating Co. Inc. I-2 OLIKTOK POINT I-2 Jim Regg InspectorSrc: Reviewed By: P.I. Suprv Comm ________ JBR 05/22/2023 I-2 50-029-23326-00-00 206-144-0 W SPT 3404 2061440 1500 487 490 489 487 180 190 190 190 OTHER P Bob Noble 4/19/2023 Post slickline patch. 30 MinPretestInitial15 Min Well Name Type Test Notes: Interval P/F Well Permit Number: Type Inj TVD PTD Test psi API Well Number Inspector Name:OLIKTOK POINT I-2 Inspection Date: Tubing OA Packer Depth 512 1651 1571 1543IA 45 Min 60 Min Rel Insp Num: Insp Num:mitRCN230420152953 BBL Pumped:1.1 BBL Returned:1.1 Monday, May 22, 2023 Page 1 of 1 No sundry approval for the well workover; jbr 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:Wallace, Chris D (OGC) To:AOGCC Records (CED sponsored) Subject:FW: OP-I2 (PTD# 206-144) TxIA Communication Date:Tuesday, January 10, 2023 9:29:29 AM Attachments:image002.png From: Lopez Keith <Keith.Lopez@eni.com> Sent: Tuesday, January 10, 2023 9:21 AM To: Wallace, Chris D (OGC) <chris.wallace@alaska.gov>; Regg, James B (OGC) <jim.regg@alaska.gov> Cc: Hart David <David.Hart@eni.com>; Giraud Hector <Hector.Giraud@eni.com>; Pierfelici Stefano <Stefano.Pierfelici@eni.com>; Lyden Dan <Dan.Lyden@eni.com>; Dexheimer Stephen <Stephen.Dexheimer@eni.com>; Morgan Michael <Mike.Morgan@eni.com>; Zuber Joshua <Joshua.Zuber@eni.com>; Burgess Larry <Larry.Burgess@eni.com>; Tredway Tommy <Tommy.Tredway@eni.com>; Pitzalis Francesco <Francesco.Pitzalis@eni.com>; Lopez Keith <Keith.Lopez@eni.com>; Buchert Brad <Brad.Buchert@external.eni.com> Subject: OP-I2 (PTD# 206-144) TxIA Communication Mr. Wallace, Yesterday (01-09-23), ENI noticed a concern with tubing by inner annulus communication on OP-I2. The IA pressure increased from 68 psi to over 700 psi in a 15 minute period. The injector was shut in and will remain shut in until further diagnostics can be conducted with slickline/eline. OP-I2 past its last 4-year MIT on 03/21/21. Please let me know of any concerns or further data the AOGCC requires. Thank you. Keith Lopez Senior Production Engineer Eni Petroleum, Alaska 3700 Centerpoint Drive, Suite 500 Anchorage, AK 99503 Direct 907-865-3316 Mobile 907-903-5432 Keith.Lopez@eni.com ------------------------------------------------------------------------------------------------------------------------------------------------------------------------ Message for the recipient only, if received in error, please notify the sender and read http://www.eni.com/disclaimer/ MEMORANDUM TO: Jim Regg P.LSupervisor FROM: Matt Herrera Petroleum Inspector Well Name OLIKTOK POINT 1-2 Insp Num: mitMFH210323082905 Rel Insp Num: State of Alaska Alaska Oil and Gas Conservation Commission DATE: Friday, April 2, 2021 SUBJECT: Mechanical Integrity Tests I- US Operating Company Inc. 1-2 OUKTOK POINT I-2 NON -CONFIDENTIAL API Well Number 50-029-23326-00-00 Permit Number: 206-144-0 Pnn4n� ne...r. Sre: Inspector Reviewed By: P.I. Suprv, -JG(-- Comm Inspector Name: Man Herrero Inspection Date: 321/2021 Well I -z s- Type Inj 'x'- TVD 3404 - Tubing PTD 2061440 Type Test SPT Test psi 1500 IA BBL Pumped: 2.2 .BBL Returned: 1.3 OA Interval 4YRTST - D G li """ 484 60 14s initial 484 - 1721 - zso - ra mm su Mtn 484 - 484 - 1654 1643 210- zao 45 Min 60 Min Notes: MIT -IA Pressure tested to 1700 PSI Per Operator for minimum test pressure criteria Friday, April 2, 2021 Page I of I MEMORANDUM TO: Jim Regg P.LSupervisor FROM: Matt Herrera Petroleum Inspector Well Name OLIKTOK POINT 1-2 Insp Num: mitMFH210323082905 Rel Insp Num: State of Alaska Alaska Oil and Gas Conservation Commission DATE: Friday, April 2, 2021 SUBJECT: Mechanical Integrity Tests I- US Operating Company Inc. 1-2 OUKTOK POINT I-2 NON -CONFIDENTIAL API Well Number 50-029-23326-00-00 Permit Number: 206-144-0 Pnn4n� ne...r. Sre: Inspector Reviewed By: P.I. Suprv, -JG(-- Comm Inspector Name: Man Herrero Inspection Date: 321/2021 Well I -z s- Type Inj 'x'- TVD 3404 - Tubing PTD 2061440 Type Test SPT Test psi 1500 IA BBL Pumped: 2.2 .BBL Returned: 1.3 OA Interval 4YRTST - D G li """ 484 60 14s initial 484 - 1721 - zso - ra mm su Mtn 484 - 484 - 1654 1643 210- zao 45 Min 60 Min Notes: MIT -IA Pressure tested to 1700 PSI Per Operator for minimum test pressure criteria Friday, April 2, 2021 Page I of I • • MEMORANDUM State of Alaska Alaska Oil and Gas Conservation Commission TO: Jim Regg DATE: Wednesday,December 28,2016 Zt P.I.Supervisor ,\ j17 IzIl rt`' SUBJECT: Mechanical Integrity Tests ( Z ENI US OPERATING CO INC 1-2 FROM: Jeff Jones OLIKTOK POINT I-2 Petroleum Inspector Src: Inspector Reviewed By: P.I.Supry Lf NON-CONFIDENTIAL Comm Well Name OLIKTOK POINT 1-2 API Well Number 50-029-23326-00-00 Inspector Name: Jeff Jones Permit Number: 206-144-0 Inspection Date: 12/9/2016 Insp Num: mitJJ161212102233 Rel Insp Num: Packer Depth Pretest Initial 15 Min 30 Min 45 Min 60 Min Well 1-2 Type Inj W•HTVD 3404 Tubing 380 388 - 388 -( 388 PTD 2061440 !Type Test SPT Test psi 1500 IA 352 1706 - 1678 - 1676 Interval 4YRTST P/F P OA 260 300 260 . 270 Notes: 1.1 barrels diesel pumped.1 well inspected,no exceptions noted. SCANNED APR 4 5H /, Wednesday,December 28,2016 Page 1 of 1 • • MEMORANDUM State of Alaska Alaska Oil and Gas Conservation Commission TO: Jim Regg DATE: Friday, April 27, 2012 �l P.I. Supervisor I.1 f 5,1 Z SUBJECT: Mechanical Integrity Tests ENI US OPERATING CO INC 1 -2 FROM: Bob Noble OLIKTOK POINT 1-2 Petroleum Inspector Src: Inspector Reviewed By: P.I. Supry ; �z- -- NON- CONFIDENTIAL Comm Well Name OLIKTOK POINT I - API Well Number 50 029 - 23326 - 00 - 00 Inspector Name: Bob Noble Permit Number: 206 - 144 - Inspection Date: 4/26/2012 Insp Num: mitRCN120427093500 Rel Insp Num: Packer Depth Pretest Initial 15 Min 30 Min 45 Min 60 Min Well I — 1-2 . ' Type Inj W 'TVD 3404 ' IA 171 1700 - 1641 I 1637 -- PTD 2061440 ' Type Test SPT Test psi 1500 - OA 260 320 260 260 Interval INITAL P/F P Tubing 228 227 228 227 Notes: 1.4 bbls pumped Friday, April 27, 2012 Page 1 of 1 1 Pib Regg, James B (DOA) 066 440 From: Regg, James B (DOA) Sent: Monday, April 23, 2012 5:35 PM To: 'Nofziger Laura' Cc: Brooks, Phoebe L (DOA); DOA AOGCC Prudhoe Bay Subject: RE: Missing MIT Thank you for clarifying and providing test results. Responses to you questions below in red. Jim Regg AOGCC 333 W. 7th Ave, Suite 100 Anchorage, AK 99501 907 - 793 -1236 — From: Nofziger Laura [mailto:Laura.Nofziger @enipetroleum.com] Sent: Monday, April 23, 2012 4:33 PM To: Regg, James B (DOA) Cc: Brooks, Phoebe L (DOA) Subject: RE: Missing MIT Mr. Regg, As you state below, we did perform the post- injection MITs on 0106 -05 and OP -12 on the same day, 12/3/11, but the tests were not passed and the paperwork was not formally filed. Both tests were witnessed by Mr. Lou Grimaldi. Please see the attached 10 -426 forms that contain the test information from that day. Response – Both tests are inconclusive Mr. Grimaldi did not pass these tests since they were inconclusive due to unstable temperatures on the IA. Our drillsite operator, Delton Carroll, remembers Mr. Grimaldi stating that approval of the test information would ultimately be made by you or that we would need to re -test when the temperatures stabilized. I believe that the temperatures were unstable that day because the test fluid diesel was not pre- heated and was 26 degrees at the time of test. We have since changed our MIT procedures so that a pump truck is utilized to pressure up the inner annulus to 1700 psi 24 hours ahead of the MIT so that the IA can be bled off and the temperature stabilized prior to the actual test. I apologize for my oversight of not sending in the paperwork in December. I was under the impression that we were waiting for further direction from the AOGCC office about whether the field MIT data was acceptable or whether we needed to re -test before sending in the paperwork. I should have followed up with the formal paperwork and a phone call to ensure that we were in compliance. We are ready to repeat these tests at your earliest convenience. We also would like to schedule the post- injection test on 0113 -03 as well as the annual MITs for 0107 -04 and 0111 -01 (due in mid -May) with your inspectors. Response – As stated in my initiating message, the Inspector suggested the operator (Mr. Carroll) leave the IA pressured and monitor for at least 24 hours, then provide pressure data (tubing, inner annulus, outer annulus) to AOGCC for review in conjunction with the MIT reports. Since that was not done, both wells need to be retested (MITIA to 1500psi minimum). I do have a question about the annual MITs. Being new to Alaska operations, I am not familiar with the AOGCC's preferences. Do you prefer to witness all of the annual MITs at the same time or do you prefer that we conduct each individual MIT as close as possible to that injection well's anniversary? Response – Thank you for recognizing the logistical challenges AOGCC Inspectors have to deal with associated with Nikaitchuq inspections. Our preference would be to coordinate work whenever possible; for instance, bundling all MITs at Nikaitchuq so that could be witnessed on 1 -2 days (if possible), or alternately bundling MITs with SVS tests, BOPE tests, meter inspections, etc. will be better use of AOGCC Inspector's time than doing individual tests requiring multiple 1 • • trips. That does have to be balanced with regulatory requirements for performing tests. Decision ultimately resides with Inspectors and their workload. If you are contemplating bundling all MITs I suggest you propose an anniversary date for MITs by drillsite, or combined Oliktok Pt and Spy Island; you can coordinate that with me. Again, I apologize for not following up on 0106 -05 and OP -12's original post- injection MITs. Please let me know if and when you would like us to repeat these tests and when your inspectors would like to witness 0113 -03, 0107 -04 and 0111 -01's tests. Sincerely, Laura Nofziger Sr. Production Engineer Office 907 - 865 -3339 Cell 907 - 341 -9659 laura .nofziger From: Regg, James B (DOA) [mailto:jim.regg@ alaska.gov] Sent: Monday, April 23, 2012 10:48 AM To: Nofziger Laura Cc: Brooks, Phoebe L (DOA) Subject: RE: Missing MIT Another missing MIT is Nikaitchuq 0106 -05 (PTD 2101650). Initial pre- injection MIT was performed on this well 11/2/2012 by ENI ( AOGCC did not witness). We do not have record of the post - initial injection MIT as required by injection order for Nikaitchuq (A1O 36, Rule 6). Please review this one also and provide appropriate info /explanation. Jim Regg AOGCC 333 W. 7th Ave, Suite 100 Anchorage, AK 99501 907 - 793 -1236 From: Regg, James B (DOA) Sent: Friday, April 20, 2012 4:42 PM To: ' Laura .Nofziger @enipetroleum.com' Cc: Brooks, Phoebe L (DOA) Subject: Missing MIT Our records indicate Oliktok Point 1 -2 (PTD 2061440) was placed on injection in early November 2011 following a pre - injection MIT performed 11/2/2011. Attempted post initial injection MIT on 12/3/11 (AOGCC witness) was deemed incomplete with instructions given to operator performing the test to leave IA pressure and monitor or 48hrs because the well was not thermally stable; instructions included sending data to AOGCC for review in conjunction with MIT data generated 12/3/11. We have no record of that data being received by AOGCC, and no record of a post- injection MIT being performed as required by the injection order. Please review and provide appropriate info /explanation. Jim Regg AOGCC 333 W. 7th Ave, Suite 100 Anchorage, AK 99501 907 - 793 -1236 2 ;; STATE OF ALASKA ASKA L AND GAS CONSERVATION COMMISSIOP N i3 6 zoREPORT OF SUNDRY WELL OPERATIONS 1. Operations Abancjoillat. 1OMIthriiiiWell LJ Plug Perforations LJ Stimulate LJ Other U Convert to Injector Performed: Alter Casing. el p Pull Tubing Perforate New Pool ❑ Waiver ❑ Time Extension ❑ Change Approved Program [� Operat. Shutdown ❑ Perforate ❑ Re -enter Suspended Well ❑ 2. Operator Eni US Operating Co. Inc. 4. Well Class Before Work: 5. Permit to Drill Number: Name: Development 0 Exploratory ❑ 206 -144 • 3. Address: 3800 Centerpoint Drive, Ste. 300 Stratigraphic❑ Service ❑ 6. API Number: Anchorage, AK 99503 �j 50- 029 - 23326 -00 -00 7. Property Designation (Lease Number): �'Y n 8. Well Name and Number: 355024, 373301 3 C tp 1 fit, 1 l b OPI -2 K 9. Field /Pool(s): `� t Nikaitchuq/ Schrader Bluff Oil Pool 10. Present Well Condition Summary: Total Depth measured 12711 feet Plugs measured N/A feet true vertical 2599 feet Junk measured N/A feet Effective Depth measured 12711 feet Packer measured 5796 feet true vertical 2599 feet true vertical 3404 feet Casing Length Size MD TVD Burst Collapse Structural Conductor 115 16 115 115 N/A N/A Surface 2498 10.75 2533 2022 5210 2470 Intermediate 6663 7.625 6696 3578 6890 4790 Production Liner 6015 3.5 12711 3599 Slotted Slotted Perforation depth Measured depth N/A feet True Vertical depth N/A feet Tubing (size, grade, measured and true vertical depth) 4.5" 12.6 ppf L -80 6573 3568 Packers and SSSV (type, measured and true vertical depth) AHC Retr. Packer No SSSV 5796 3404 11. Stimulation or cement squeeze summary: Intervals treated (measured): N/A ,,��qq}},� _ C pp� pp SCA141' ED,IAN, ! 4 'LUr` 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: 251 33 0.9 0 176 Subsequent to operation: N/A N/A 555 0 754 13. Attachments: 14. Well Class after work: Copies of Logs and Surveys Run Exploratory Development Service 0 Stratigraphic ❑ Daily Report of Well Operations Yes 15. Well Status after work: .► Oil ❑ Gas ❑ WDSPL ❑ GSTOR ❑ WINJ 0 WAG ❑ GINJ ❑ SUSP ❑ 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: 311 -318 Contact Joseph Longo (907) 865 -3323 Printed Name Maurizio Grandi / Title Well Operations Project Manager Signature //‘ ` l t.uC�� f - sl G `"`" ^ 4 Phone 907 - 865 -3323 Date 12/27/2011 ABCiMS JAN 06 2012 e Form 10 -404 Revised 10/2010 Submit Original Only Nikaitchuq Field — Oliktok Point Pad ilisik . 1 OPI -2 Injector 4 -/2 12.6 ppf Production (Conversion to Injection) 2n Tubing M_SS opera g VIT, 3 joints, 4 -Y2" x 6 ", approx 102' As Completed 1 10/24/11 2066' MD 1801' TVD, 57° Inc - 3.81" X- nipple for possible injection valve 1k\ 2164' MD, 1850' TVD, 63° Inc - 4 -'/2" x 1" KBMG GLM, 2,000 psi A to T shear valve # • 5739' MD, 3383' TVD, 67° Inc - 3.81" X- nipple 5809' MD, 3408' TVD, 70° Inc - 3.725" XN Nipple 10 -3/4" 45.5 ppf ; • 6573' MD, 3568' TVD, 85.7° Inc — Wireline Entry Guide Casing, 2533' MD, 2022' TVD, 65° Inc f , L AHC Retr. Packe , , y,, 5796' MD, 3404' TVD 69° Inc • 7 -5/8" 29.7 ppf 3 - %" 9.2 ppf Intermediate Production Liner, Casing, 6696' MD, 3578' 12,711' MD, TVD, 85° Inc 3,599' TVD Confidential MDK 10/26/11 Eni E &P Division • !Well Name: OP -12 I ENI Petroleum Co. Inc. Daily Report Well Code: 22334 < ' 4 Field Name: t, Date: 10/18/2011 - Report #: 1 APIIUWl: Wellbore name: OPI -2 page 1 of 1 Well Header ALASKA Permit/Concession N° I ENI PETROLEUM I ENI Share (%) 30.00 HO I RIZONTAL ationcype Rotary Table Elevation (m) 'Ground Level (m) 'Water Depth (m) RKB - Base Flange (m) I RKB - Tubing Spool (m) 159.00 36.00 Rig information Contractor Rig Name Rig Type NABORS ALASKA 1 NABORS 245 E 1LAND RIG Job Information Wellbore 'Job Phase (Spud Date 'Target Depth (mKB) 'Target Depth (TVD...IDepth Dr. (MD) (m) 'Drilling Hours (hr) 'Avg ROP (mlhr) IDFS (days) OPI-2 WORKOVER 0.00 Daily Information End Depth (mKB) End Depth (TVD) (... Depth Progress (m) Drilling Hours (hr) Avg ROP (mlhr) POB Temperature (°C) Weather Wind 0.00 83.0 -4.7 Cloudy WC 15.6° 106° ENE 02 11.9 MPH Daily summary operation 24h Summary Moving - Prepare Wellhead - Killing job Operation at 07.00 R/D killing lines 24h Forecast Killing Job - Set BPV - N/U BOP Stack - BOP Test Lithology 'Shows I MAASP (kgflcm') ' Mud Weight (gIL) 1054.5 Time Log Start End Cum Time Time Dur (hr) Dur (hr) Phase Opr. Act. Plan Oper. Descr. 00:00 03:30 3.50 3.50 MOB A 5 P Complete to blow down lines - Disconnect inner connects through rig 03:30 16:00 12.50 16.00 MOB A 2 P Jack up modules and move 34' to OPI 2 - Jack down modules on rig mats - R/U berm around rig - Hook up inner connects through modules - Install steps, stairs and handrails - Fill steam system - Prepare Lampsom to remove for maintenance - Set cuttings tank - Set spooling unit NOTE: Operation slowed down due to need blow down loop steam system / a failure on power generator on utility module, force the shutdown of steam system during moving 16:00 19:00 3.00 19.00 MOB L 2 P Prepare Wellhead to kill job 19:00 20:00 1.00 20.00 MOB L 2 P R/U kill lines - PJSM 20:00 23:30 3.50 23.50 MOB L 12 TR99 Pressure test tines fated several times - Found leaks on 4 kill manifold valves - R/U cement line to perform kill job 23:30 00:00 0.50 24.00 MOB L 9 P Pressure test Ones 3000 psi OK - Tbg 23 psi / IA 25 psi - Stan kill job pumping down tubing 3% KCI Brine 8.8 ppg (1 bpm - pressure up after 21 bbl pumped) Ongoing Daily Contacts Position Contact Name Company TItke Email Office Mobile Eni representative Mirko Musumeci Eni Petroleum Drlg Spvr. 907 -685 -1277 Eni representative Frank Cormier Eni Petroleum Sr. Dig. Spvr. 907-685-1227 337 - 277 -1809 Eni representative Sach Bowe Eni Petroleum Materals Coordinator 907. 685 -1226 907 - 299-0531 Eni representative Mike Nelson Eni Petroleum HSE 907 -685 -1227 Eni representative Mhch Billington Eni Petroleum Rig Clerk 907 -685 -1286 Tool Push Mike Williams Nabors Alaska Drilling Tool Pusher 907 - 670 -8539 Tool Push Russ Wimmer Nabors Alaska Drilling Tour Pusher 907 - 670 -8539 Eni representative Michael Seward Eni Petroleum Project Advisor Last Casing seat Caa. Type ( OD (In) 1 ID (in) Grade I Top (mKB) Bottom (mKB) I Run Date Last Leakoff Test Depth (mKB) I TVD (mKB) 'Fluid Type 'Fluid Density (gIL) IP Surf Applied (kgflem') I Eq. Mud Weight (g/L) I P LeakOff (kgflcm') r _+►� Eni E &P Division 'well Name: OP - ENI Petroleum Co. Inc. Daily Report Well Code: 22334 . ,. 1 ,; Field Name: D ate: 10/19/2011 - Report # 2 APUtnnn: c Y Wellbore name: OPI -2 page 1of1 Well Header ALASKA Permit/Concession N° 'Operator ENI PETROLEUM 'ENI Share (%) 30.0 HORIZONTAL ZONTA Configuration type Rotary Table Elevation (m) 'Ground Level (m) I Water Depth (m) I RKB - Base Flange (m) IRKB - Tubing Spool (m) 159.00 36.00 Rig Information Contractor Rig Name Rig Type NABORS ALASKA Contractor ! Rig 245 E LAND RIG Job Information Wellbore 'Job Phase 'Spud Date 'Target Depth (mKB) 'Target Depth (TVD...IDepth Dr. (MD) (m) 'Drilling Hours (hr) I Avg ROP (mlhr) IDFS (days) OPI-2 WORKOVER 0.00 Daily information End Depth (mKB) End Depth (TVD) (... Depth Progress (m) Drilling Hours (hr) Avg ROP (mlhr) POB Temperature ( °C) Weather Wind 0.00 80.0 -1.0 Cloudy WC 20.7° 76° ENE @ 11.9 MPH Daily summary operation 24h Summary Killing Job - N/D Tree - N/U Adapter spool and riser spools - N/U BOP Stack Operation at 07.00 N/U Flow nipple after weld job 24h Forecast Finish N/U BOP - Test BOP - R/U 3 1/2" handling tools - Pull hanger observe well - POOH laying down 3 1/2" tubing Lithology 'Shows 'MAASP (kgf /cm') I Mud Weight (WI.) 1054.5 Time Log Start End Cum Time Time Dur (hr) Dur (hr) Phase Opr. Act. Plan Oper. Descr. 00:00 03:30 3.50 3.50 W.O. L 9 P Bullhead 150 bbl 8.8 ppg hot Brine 3% KCI down tubing (1.8 bpm @ 760 psi - IA 0 psi) - Bullhead 250 bbl 8.8 ppg hot Brine 3% KCI down IA (3 bpm @ 0 psi - Tbg 0 psi) - Monitor well 10' 03:30 05:30 2.00 5.50 W.O. L 5 P Blow down and R/D killing lines - Install BPV 05:30 07:00 1.50 7.00 W.O. C 5 P N/D X Tree - Install test dart 07:00 00:00 17.00 24.00 W.O. C 5 P N/U 11" 5k X 13 5/8" k5 XO + Riser Spools - Set Shave for ESP cable - Set BOP Stack - Set flow nipple and check line up for welder job - Install choke and kill lines Daily Contacts Position Contact Name Company Title E-mail Office Mobile Eni representative Mirko Musumeci Eni Petroleum Ddg Spvr. 907 -685 -1277 Eni representative Frank Cormier Eni Petroleum Sr. Ddg. Spvr. 907-685-1227 337 - 277 -1809 Eni representative Sach Bowe Eni Petroleum Materals Coordinator 907 -685 -1226 907 - 299 -0531 Eni representative Steve Mllea ENI Petroleum HSE 907 -685 -1227 Eni representative Mitch Billington Eni Petroleum Rig Clerk 907-685-1286 Tool Push Bruce Simonson Nabors Alaska Drilling Tool Pusher 907 -670 -8539 Tool Push Russ Wimmer Nabors Alaska Drilling Tour Pusher 907-670-8539 Eni representative Michael Seward Eni Petroleum Project Advisor Last Casing seat Cas. Type I OD (in) ' ID (In) Grade II I Top (mKB) I Bottom (mKB) Run Date Last Leakoff Test Depth (mKB) TVD (mKB) 'Fluid Type 'Fluid Density (g/L) IP Surf Applied (kgf /cm') I Eq. Mud Weight (gIL) I P LeakOff (kgf /cm') r • fit► Eni E &P Division Well Name: OP -12 OR I EN/ Petroleum Co. Inc. Daily Report Well Code: 22334 ', - Field Name: '` ` Date: 10 /20/2011 - Report #: 3 - APIIUWI: page 1 of 1 Wellbore name: OPI -2 Well Header ALASKA Permit/Concession N° I ENI PETROLEUM !ENI Share (%) 30.00! O AL lion type Rotary Table Elevation (m) !Ground Level (m) I Water Depth (m) IRKB - Base Flange (m) IRKB - Tubing Spool (m) 159.00 36.00 Rig Information Contractor Rig Name Rig Type NABORS ALASKA INABORS 245 E LAND RIG Job information Wellbore !Job Phase 'Spud Date 'Target Depth (mKB) !Target Depth (TVD..1 Depth Dr. (MD) (m) !Drilling Hours (hr) 'Avg ROP (mlhr) IDFS (days) OPI-2 1WORKOVER 0 Daily Information End Depth (mKB) [ End Depth (TVD) (...! Depth Progress (m)' Drilling Hours (hr) 'Avg ROP (mlhr) I P06 !Temperature ( °C) !Weather ! Wind 0.00 84.0 2.4 Cloudy WC 26.6° 128° SE (§ 2 MPH Daily summary operation 24h Summary N/U BOP - Test BOP - RN handling tool - Pull Tbg Hanger Operation at 07.00 Repair line on lay down machine 24h Forecast Well decompletion Lithology 'Shows I MAASP (kgf /cm') 'Mud Weight (gIL) 1054.5 Time Log Start End Cum Time Time Dur (hr) Dur (hr) Phase Opr. Act. Plan Oper. Descr. 00:00 06:30 6.50 6.50 W.O. C 5 P N/U Flow nipple after weld Job (length increased 8.5 °) - Finish N/U BOP Stack 06:30 08:00 1.50 8.00 W.O. C 5 P C/O top rams to 3 W fix 08:00 09:00 1.00 9.00 W.O. C 12 P Perform body test on BOP Stack, choke and kill lines - Notify AOGCC ready to test 09:00 10:30 1.50 10.50 W.O. C 5 P Install Ketch Kan and all drip barriers 10:30 12:00 1.50 12.00 W.O. L 2 P R/U BOP test equipment - R/U 3 1/2" handling tools 12:00 19:30 ' 7.50 19.50 W.O. C 12 P Test BOP's rams and all valves 250/3500 psi, Annular 250/2500 psi on Chart - BOP Test witnessed by Lou Grimaldi w/AOGCC - Tbg venting during test (BPV not completely closed due to debris inside) pumped 50 bbl 8.8 ppg Brine down tubing (1.6 bpm @ 790 psi) 19:30 21:00 1.50 21.00 W.O. K 5 P Pug Test Plug - UD Test Jt - Pull BPV - P/U TIW + Landing Jt and M/U to Tbg Hanger 21:00 21:30 0.50 21.50 W.O. C 20 P Back out lock down screw - Tbg and IA pressure 0 psi 21:30 23:30 2.00 23.50 W.O. L 19 P PuN hanger 88 150k Ibs, No released - Cycled up/down several time till 180k lbs, No released - Run Steam on wellhead and inside riser to warm up - Pull hanger free @ 120k lbs (Up wt 94k lbs) 23:30 00:00 0.50 24.00 W.O. L 9 : P Pump 50 bbl 8.8 ppg Brine down IA (3 bpm © 0 psi) Daily Contacts Position Contact Name Company Title E-mail Office Mobile Eni representative Mirko Musumeci Eni Petroleum Drlg Spvr. 907-685-1277 Eni representative Frank Cormier Eni Petroleum Sr. Drip. Spvr. 907-685-1227 337 - 277 -1809 Eni representative Sach Bowe Eni Petroleum Materals Coordinator 907 -685 -1226 907 - 299 -0531 Eni representative Steve MNlea ENI Petroleum HSE 907-685 -1227 Eni representative Mitch Billington Eni Petroleum Rig Clerk 907 -685 -1286 Tool Push Bruce Simonson Nabors Alaska Drilling Tool Pusher 907 -670 -8539 Tool Push Russ Wimmer Nabors Alaska Drilling Tour Pusher 907 -670.8539 Eni representative Michael Seward Eni Petroleum Project Advisor Last Casing seat Cas. Type I OD (in) I ID (In) Grade Top (mKB) I Bottom (mKB) Run Date Last Leakoff Test 1 Depth (mKB) ! TVD (mKB) I Fluid Type I Fluid Density (gIL) IP Surf Applied (kgf /cm') I Eq. Mud Weight (gIL) I P LeakOff (kgflcnf) " A Eni E &P Division ., 'Well Name: OP -12 OR I ENI Petroleum Co. Inc. Daily Report Well Code: 22334 i �;. ^., :, .`; '' , Field Name: - Date: 10/21/2011 - Report #: 4 iOPgUWI: ° 1_ I ' " page 1 011 Wellbore name: OPI -2 Well Header Permit/Concession N° 'Operator ENI PETROLEUM 'ENI Share (%) 30.0 HO Configuration bon type Rotary Table Elevation (m) 'Ground Level (m) 'Water Depth (m) I RKB - Base Flange (m) I RKB - Tubing Spool (m) 159.00 36.00 Rig Information Contractor I Rig Name Rig Type NABORS ALASKA NABORS 245 E LA RIG Job Information Wellbore 'Job Phase 'Spud Date 'Target Depth (mKB) 'Target Depth (TVD...I Depth Dr. (MD) (m) 'Drilling Hours (hr) 'Avg ROP (mlhr) IDFS (days) OPI-2 1WORKOVER 0.00 Daily Information End Depth (mKB) End Depth (TVD) (... Depth Progress (m) Drilling Hours (hr) Avg ROP (mlhr) POB Temperature ( °C) Weather Wind 0.00 80.0 -4.4 Cloudy / light snow 252° WSW @ 3.8 ° WC 20.5° MPH Daily summary operation 24h Summary POOH and UD completion string w/ ESP Operation at 07.00 Record CBL w/ Slb eLine 24h Forecast R/U Sib eLine - Record CBL - R/D Slb eLine - Completion Job Lithology 'Shows I MAASP (kgf/cm 'Mud Weight (gIL) 1054.5 Time Log Start End Cum Time Time Dur (hr) Dur (hr) Phase Opr. Act Plan Oper. Descr. 00:00 02:30 2.50 2.50 W.O. L 5 P Pull Tbg Hanger - Disconnect penetrator and prepare to run cable through sheaves - UD Tbg Hanger and Landing Jt - C/O Elevators - POOH 3 Tbg 9.3# L80 1/6533' 8/6450' pumping in hole 5 bbl 8.8 ppg Brine every 30 min 02:30 0430 2.00 4.50 W.O. L 25 TR99 Trouble on Pipe Skate, oil transmission hose broke - Replace hose, No spill 04:30 14:00 9.50 14.00 W.O. L 5 P POOH 3 W Tbg 9.3# L80 (/6450'8/2233' pumping in hole 5 bbl 8.8 ppg Brine every 30 min 14:00 15:30 1.50 15.50 W.O. L 20 P C/O Baker ESP cable spool 15:30 20:30 5.00 20.50 W.O. L 5 P POOH 3 14" Tbg 9.3# L80 (/2233' trop ESP, pumping in hole 5 bbl 8.8 ppg Brine every 30 min - Total recovered 202 3 W Tbg / 207 Clamps 20:30 22:30 2.00 22.50 W.O. L 5 P POOH and UD ESP component - No sand traces observable 22:30 00:00 1.50 24.00 W.O. J 2 P R/D Baker equipment - R/U Slb eLine to record CBL - Ongoing Daily Contacts Position Contact Name Company Title E-mail Orrice Mobile Eni representative Mirko Musumeci Eni Petroleum Dig Spvr. 907 -685 -1277 Eni representative Frank Cormier Eni Petroleum Sr. Dig. Spvr. 907 -685 -1227 337 - 277 -1809 Eni representative Sach Bowe Eni Petroleum Materals Coordinator 907 -685 -1226 907 - 299-0531 Eni representative Steve Millea ENI Petroleum HSE 907 -685 -1227 Eni representative Mitch Billington Eni Petroleum Rig Clerk 907-685-1286 Tool Push Bruce Simonson Nabors Alaska Drilling Tool Pusher 907 -670 -8539 Tool Push Russ Wimmer Nabors Alaska Drilling Tour Pusher 907 -670 -8539 Eni representative Michael Seward Eni Petroleum Project Advisor Last Casing seat Cas. Type 1 OD (in) I ID (In) 1 Grade Top (mKB) I Bottom (mKB) I Run Date Last Leakoff Test Depth (mKB) I TVD (mKB) I Fluid Type 'Fluid Density (g!L) I P Surf Applied (kgficm')' Eq. Mud Weight (gIL) ' P LeakOfl (kgflcm °) • • R Eni E &P Division 'Well Name: OP -12 OR ENI Petroleum Co. Inc. Daily Report Well Code: 22334 ^ ' ,- $ Field Name: ., Date: 10/22/2011 - Report #: 5 APIIUWI: page 1 of 1 Wellbore name: OPI -2 Well Header A LAS tl�Concession N° I ENI PETROLEUM I ENI Share ( %) 30.001 Well ZONTAL lio type Rotary Table Elevation (m) 'Ground Level (m) I Water Depth (m) I RKB - Base Flange (m) IRKB - Tubing Spool (m) 159.00 36.00 Rig Information Contractor Rig Name I Rig Type NABORS ALASKA I NABORS 245 E LAND RIG Job information Wellbore Job Phase Spud Date Target Depth (mKB) Target Depth (TVD.. Drilling Hours (hr) Avg ROP (mlhr) DFS (days) OPI-2 I WORKOVER I I I 1 Depth Dr. (MD) (m) I I 0.00 Daily Information End Depth (mKB) End Depth (TVD) (... Depth Progress (m) Drilling Hours (hr) Avg ROP (mlhr) POB Temperature (°C) Weather Wind 0.00 77.0 -4.7 Cloudy / Light snow 49° NE @ 21.5 MPH WC 9° Daily summary operation 24h Summary R/U Sib eLine - Record CBL - R/D Sib eLine - Prepare to completion Job Operation at 07.00 Running completion string 24h Forecast Run completion string Lithology 'Shows I MAASP (kgflcm') 'Mud Weight (glL) 1054.5 Time Log Start End Cum Time Time Dur (hr) Dur (hr) Phase Opr. Act. Plan Oper. Descr. 00:00 01:30 1.50 1.50 W.O. J 2 P R/U Slb eLine to record CBL 01:30 10:00 8.50 10.00 W.O. J 11 P 1st eLine run w/ USIT 06450' - Adding in hole 5 bph 8.8 ppg Brine 10:00 13:00 3.00 13.00 W.O. J 11 P 2nd eLine run Id Junk Basket and USIT - No debris found 13:00 18:00 5.00 16.00 W.O. J 11 P 3rd eLine run wt USIT V6450' - Fluid @ 1700', TOC @ 4220' - R/D Slb eLine 18:00 19:30 1.50 19.50 W.O. K 2 P R/D Shaves and Trunk 19:30 22:30 3.00 22.50 W.O. C 5 P PA./ and M U 4 W Test Jt and set Test Plug - C/O top rams from 3 W fixed to 4 Wx7" variables - Test top rams 250/3500 psi 5 min on chart - Pull and UD Test Plug and Test Jt 22:30 00:00 1.50 24.00 W.O. K 5 P CIO Elevators - Perform Tubing Hanger dummy run - R/O 4 W handling tools and tongs - Add in hole 5 bbl each 1.5 Hrs 8.8 ppg Brine Daily Contacts Position Contact Name Company Title E-mail Office Mobile Eni representative Mrrko Musumeci Eni Petroleum Ddg Spvr. 907 -685 -1277 Eni representative Frank Cormier Eni Petroleum Sr. DrIg. Spvr. 907 -685 -1227 337 - 277 -1809 Eni representative Sach Bowe Eni Petroleum Materals Coordinator 907-685 -1226 907- 299 -0531 Eni representative Steve Millea ENI Petroleum HSE 907 -685 -1227 Eni representative Mitch Billington Eni Petroleum Rig Clerk 907 -685 -1286 Tool Push Bruce Simonson Nabors Alaska Drilling Tool Pusher 907 -670 -8539 Tool Push Russ Wimmer Nabors Alaska Drilling Tour Pusher 907 -670 -8539 Eni representative Michael Seward Eni Petroleum Project Advisor Eni representative Michele Cesari Eni Petroleum Engineer Last Casing seat Cas. Type I OD (in) I ID (in) I Grade I Top (mKB) I Bottom (mKB) I Run Date Last Leakoff Test Depth (mKB) 'TVD (mKB) I Fluid Type 'Fluid Density (g/L) IP Surf Applied (kgflcm') 'Eq. Mud Weight (g!L) I P LeakOff (kgflcm °) • II • ++ ■ . A Eni E &P Division (Well Name: OP -12 OR • EN/ Petroleum Co. Inc. Daily Report Well Code: 22334 Field Name: Date: 10/23/2011 - Report #: 6 APUUWI: '. page 1 of 1 Wellbore name: OPI -2 Well Header A LAS oneession N° I ENI PETROLEUM 'ENI Share (%) 30.00 O I R ZON AL Configuration type Rotary Table Elevation (m) ' Ground Level (m) 'Water Depth (m) I RKB - Base Flange (m) IRKS - Tubing Spool (m) 159.00 36.00 Rig Information Contractor I Rig Name IRig Type NABORS ALASKA I NABORS 245 E I LAND RIG Job Information Wellbore I Job Phase 'Spud Date 'Target Depth (mKB) 'Target Depth (TVD..JDepth Dr. (MD) (m) 'Drilling Hours (hr) 'Avg ROP (mlhr) IDFS (days) OPI-2 WORKOVER I 0.00 Dally Information End Depth (mKB) End Depth (TVD) (... Avg ROP (mlhr) Temperature (°C) Weather Wind 0.00 1 Depth Pr (m) 'Drilling Hours (hr) I 1 POB 77.0 -8.3 Cloudy WC 5.9° 94° E (lot 9.1 MPH Daily summary operation 24h Summary Run completion string - Set Packer - Pressure test Packer and Completion string - Circulate 9.6 ppg Brine Operation at 07.00 N/D BOP Stack 24h Forecast Complete to circulate 9.6+ ppg Brine - N/U BOP Stack - N/U Tree - Pressure test Tree - Pull BPV - Freeze protect well Lithology 'Shows I MAASP (kgflcm') I Mud Weight (glL) 1156.3 Time Log Start End Cum Time Time Dur (hr) Dur (hr) Phase Opr. Act. Plan Oper. Diner. 00:00 01:00 1.00 1.00 W.O. K 20 P R/U Hatiburton completion tool - PJSM 01:00 02:00 1.00 2.00 W.O. K 5 P M/U Entry guide and RIH completion string w/ 4 W 12.68 L80 IBTM Tbg 1/760' (Baker Lock on every connection - M/U Torque 2.1 ff.lbs) - P/U and M/U Halliburton AHC Packer 02:00 09:00 7.00 9.00 W.O. K 5 P Continue RIH 4 W Completion string @ 1.5 min /Jt, pumping in hole 5 bbl 8.8 ppg Brine every 30 min 09:00 11:30 2.50 11.50 W.O. K 5 P P/U and M/U Tbg Hanger - Install dummy penetrator - Land Tbg Hanger (117k lbs up, 80k Ibs dw) - Run in all lock down screws - Test upper and lower seals 5k psi 10' each [Shoe @ 6573' - Packer @ 5796' - GLM @ 2164'] 11:30 17:00 5.50 17.00 W.O. K 19 P Drop packer setting rod/ball - M/U surface line to set Packer - Pressure test lines @ 4000 psi, surface leak, change hose and test again 4000 psi OK - Pressure down Tbg 500/4000 psi, hold 5/30 min on chart (Fully set packer - Tubing integrity test) - Bleed off Tbg pressure to 2000 psi - Test AHC Packer pumping down IA to 500/3500 psi, hold 5/30 min on chart - Bleed off tbg pressure to zero, Sheared valve on GLM - Attempt to bleed off IA pressure, Oil and gas flowing from Tbg and IA 17:00 21:00 4.00 21.00 W.O. ' K 8 U Monitor well IA= Tbg =127 psi - Weight up Brine f /8.8 ppg 119.6 ppg - R/U to circulate from IA to Tbg 21:00 00:00 3.00 24.00 W.O. K 9 ' U Circulate down IA up Tbg, through choke (9.6+ ppg - 1.3 bpm - 550 psi IA - 350 psi Tbg) Oil and gas at surface - Ongoing Daily Contacts Position Contact Name Company Title E-mail Office Mobile Eni representative Mirko Musumeci Eni Petroleum Ddg Spvr. 907 -685 -1277 Eni representative Frank Cormier Eni Petroleum Sr. Ddg. Spvr. 907 -685 -1227 337 - 277 -1809 Eni representative Sach Bowe Eni Petroleum Materals Coordinator 907 -685 -1226 907 - 299 -0531 Eni representative Steve Mitea ENI Petroleum HSE 907 -685 -1227 Eni representative Mitch Billington Eni Petroleum Rig Clerk 907-685-1286 Tool Push Bruce Simonson Nabors Alaska Drilling Tool Pusher 907 - 670 -8539 Tool Push Russ Wimmer Nabors Alaska Drilling Tour Pusher 907 -670 -8539 Eni representative Michael Seward Eni Petroleum Project Advisor Eni representative Michele Cesari Eni Petroleum Engineer Last Casing seat Cas. Type I OD (in) I ID (in) I Grade Top (mKB) I Bottom (mKB) I Run Date Last Leakoff Test Depth (mKB) I TVD (mKB) 'Fluid Type 'Fluid Density (gIL) I P Surf Applied (kgflem')' Eq. Mud Weight (gIL) I P LeskDff (kgflcm') • • • ,. Eni E &P Division I Well Name: OP -12 OR • 4110 EN! Petroleum Co. Inc. Daily Report Well Code: 22334 r -, Field Name: T Date: 10/24/2011 - Report #: 7 API/UWI: page 1 of 1 Wellbore name: OPI -2 Well Header A LAS U KA Concassion N° [Operator ENI PETROLEUM 'ENI Share ( %) 30.o0J VVell NTA Configuration type Rotary Table Elevation (m) !Ground Level (m) 'Water Depth (m) I RKB - Base Flange (m) I RKB - Tubing Spool (m) 159.00 36.00 Rig Information Contractor Rig Name I Rig Type NABORS ALASKA I NABORS 245 E LAND RIG Job Information Wellbore I Job Phase 'Spud Date 'Target Depth (mKB) 'Target Depth (7VD..I Depth Dr. (MD) (m) 'Drilling Hours (hr) I Avg ROP (mlhr) IDFS (days) OPI-2 WORKOVER 0.00 Daily Information End Depth (mKB) End Depth (TVD) (... Depth Progress (m) Drilling Hours (hr) Avg ROP (m/hr) POB Temperature ( °C) Weather Wind 0.00 79.0 -6.8 Cloudy WC 1.9° 62° ENE @ 26.6 MPH Daily summary operat/on 24h Summary Complete to circulate 9.6+ ppg Brine - N/U BOP Stack - N/U Tree - Pressure test Tree - Pull BPV - Freeze protect well Operation at 07.00 Prepare to RDMO 24h Forecast Complete to freeze protect annulus - Rig moving Lithology 'Shows I MAASP (kgflcm') 'Mud Weight (g/L) Time Log Start End Cum Time Time Dur (hr) Dur (hr) Phase Opr. Act. Plan Oper. Descr. 00:00 01:30 1.50 1.50 W.O. K • 9 U Continue to pump down IA up Tbg, through choke (9.6+ ppg - 1.3 bpm - 550 psi IA - 350 psi Tbg) Total pumped 135 bbl, Brine at surface - Stacc flow check OK 01:30 03:00 1.50 3.00 W.O. K 5 P R/D circulating hoses and valves - Pull landing joint - Install BPV 03:00 15:00 12.00 15.00 W.O. C 5 P Blow down lines - Remove choke & kill lines - R/D Ketch Kan - UD mouse hole - UD flow line - N/D BOP stack and set back - N/D and UD riser 15:00 20:00 5.00 20.00 W.O. C 5 P N/U Tree adapter and valves - Test upper void area 5000 psi 10 min - Pull BPV - Install TWC - Pressure test Tree 500/5000 psi 5/15 min FAILLED - Attempt x3 times FAILLED - CIO TWC - Repeat pressure test on chart GOOD - R/D testing equipment - Pull TWC 20:00 21:30 1.50 21.50 W.O. K 2 P R/U Little Red and retums lines on Tree to freeze protect annulus 21:30 00:00 2.50 24.00 W.O. K 7 P PJSM - Pressure test line 1500 psi 5 min - Freeze protect annulus pumping diesel down IA with retums from Tbg through choke (2bpm - 1200 psi IA - 250 psi) - Ongoing Daily Contacts Position Contact Name Company Title E-mail Office Mobile Eni representative Mirko Musumeci Eni Petroleum Drlg Spvr. 907 -685 -1277 Eni representative Frank Cormier Eni Petroleum Sr. Ddg. Spvr. 907-685-1227 337 - 277 -1809 Eni representative Sach Bowe Eni Petroleum Materals Coordinator 907 - 685 -1226 907 - 299 -0531 Eni representative Steve Millea ENI Petroleum HSE 907 - 685 -1227 Eni representative Mitch Billington Eni Petroleum Rig Clerk 907-685-1286 Tool Push Bruce Simonson Nabors Alaska Dolling Tool Pusher 907 - 670.8539 Tool Push Russ Wimmer Nabors Alaska Dolling Tour Pusher 907 -670 -8539 Eni representative Michael Seward Eni Petroleum Project Advisor Eni representative Michele Gesell Eni Petroleum Engineer Last Casing seat Cas. Type I OD (in) ID (In) I Grade J Top (mKB) I Bottom (mKB) I Run Date Last Leakoff Test Depth (mKB) I TVD (mKB) 'Fluid Type 'Fluid Density (g/L) IP Surf Applied (kgflcm') I Eq. Mud Weight (g/L) I P LeakOff (kgflcml) • • + . Eni E &P Division Well Name: OP -12 OR E N I Petroleum Co. Inc. Da o rt Well Code: 22334 Feld Name: D : 10/25/2011 - eport #: 8 API /l1Wl: " -. .-- Wellbore name: OPI -2 page 1 of 1 Well Header ALAS U Coneession N° I ENI PETROLEUM I ENI Share (%) 30.0 HORIZONTAL AL lion type Rotary Table Elevation (m) !Ground Level (m) 'Water Depth (m) I RKB - Base Flange (m) I RKB - Tubing Spool (m) 159.00 36.00 Rig Information Contractor Rig Name Rig Type NABORS ALASKA I NABORS 245 E I LAND RIG Job Information Wellbore 'Job Phase 'Spud Date 'Target Depth (mKB) 'Target Depth (TVD...I Depth Dr. (MD) (m) 'Drilling Hours (hr) 'Avg ROP (mlhr) IDFS (days) OPI -2 WORKOVER 0.00 Daily Information End Depth (mKB) 'End Depth (TVD) (...'Deptlt Progress (m)' Drilling Hours (hr) 'Avg ROP (mlhr) ' POB I Temperature (°C) ' Weather ' Wind 0.00 78.0 5.3 Cloudy WC 2.3° 52° NE @ 44.1 MPH Daily summary operation 24h Summary Complete to freeze protect annulus - Prepare to Rig move Operation at 07.00 Wait on weather 24h Forecast Finish R/D CTU on OP12 -01 - Split rig and move utility module to west to allow CTU access to OP10 -09 Lithology 'Shows I MAASP (kgflcm') I Mud Weight (glL) Time Log Start End Cum Time Time Dur (hr) Dur (hr) Phase Opr. Act. Plan Oper. Descr. 00:00 01:30 1.50 1.50 W.O. K 9 P Finish freeze protect annulus pumping diesel down IA with retums from Tbg through choke (2bpm - 1200 psi IA - 250 psi Tbg - 99.5 bbl pumped) - Shut pump 01:30 05:00 3.50 5.00 W.O. K 5 P Blow down and R/D lines and valves - P/U and M/U Lubricator and set BPV - R/D equipment - Continue to clean pits 05:00 09:00 4.00 9.00 W.O. K 25 P TDS service - Slip and cut drilling line 09:00 15:00 6.00 15.00 W.O. A 20 P Prepare for rig move: Pump pill through surface equipment - Clean pits - Secure BOP stack - Blow down lines - Change pump liner f/ 5 W V6" 15:00 00:00 9.00 24.00 W.O. A 22 TWO1 Wait on weather (Schlumberger coil tubing unit can't lower derrick due to wind storm) - Moving DPs and cutting tanks to allow CTU access to OP10 -09 - Rig maintenance [Wind 44 mph — Gust 52 mph] Daily Contacts Position Contact Name Company Title E-mail Office Mobile Eni representative Mirko Musumeci Eni Petroleum Drlg Spvr. 907. 685 -1277 Eni representative Frank Cormier Eni Petroleum Sr. Drtg. Spvr. 907 - 685 -1227 337 - 277 -1809 Eni representative Sach Bowe Eni Petroleum Materals Coordinator 907-685-1226 907- 299 -0531 Eni representative Steve Mitea ENI Petroleum HSE 907685 -1227 Eni representative Mitch Billington Eni Petroleum Rig Clerk 907 -685 -1286 Tool Push Bruce Simonson Nabors Alaska Drilling Tool Pusher 907-670-8539 Tool Push Russ Wimmer Nabors Alaska Drilling Tour Pusher 907 - 670 -8539 Eni representative Michael Seward Eni Petroleum Project Advisor Eni representative Michele Cesari Eni Petroleum Engineer Last Casing seat Cas. Type I OD (in) ID (In) Grade I Top (mKB) Bottom (mKB) 1 Run Date Last Leakoff Test Depth (mKB) 'TVD (mKB) 'Fluid Type 'Fluid Density (gIL) I P Surf Applied (kgf /cm') I Eq. Mud Weight (gIL) I P LeakOff (kgf /cm') • • MEMORANDUM State of Alaska Alaska Oil and Gas Conservation Commission TO: Jim Regg �� 17112( I ( DATE: December 4, 2011 P. I. Supervisor 11 FROM: Lou Grimaldi SUBJECT: Mechanical Integrity Test Petroleum Inspector Nikaitchuq OPI -2 Nikaitchuq Field ENI Petroleum PTD #2061440 - Saturday, December 03, 2011; I witnessed the attempted initial Mechanical Integrity Test on ENI Petroleum's well OPI -2 in the Nikaitchuq Field. I had visited this location the previous day (12/02/11) for this test and found the well unsuitable for testing as the inner annulus had just been loaded with approximately 15 Bbl's and was injecting at 180 degrees F. I advised Mark Atkins (ENI Production Foreman) to diagnose the cause of the IA losing so much fluid as it had not been on gas injection at any time. We normally would not MIT a well that has had this much fluid pumped into its IA. I received a call today that ENI had loaded the well with approximately 5 Bbl's of diesel and had a stable pressure for 12 hours (or so). I happened to be in Kuparuk at the time so I broke away from CPAI's SVS testers doing routine tests to look at ENI's wells. I also observed an attempted test on another ENI well today, Nikaitchuq 0106 -05 (PTD #2101650) and that is the subject of a separate. This is noted due to the similar peculiarities of these two tests. When I arrived the location I explained to the ENI operator, Rojo Hernandez, that since - the well was already pressured up to 1496 psi I would have to observe a minimum of 200 psi increase in the IA pressure and if it was stable they would have to bleed it to near zero to prove there was not any gas trapped in the IA. This was agreed to and we waited for the pump truck to arrive. This well exhibited thermal instability as the IA pressure continued to rise after the pressure was brought up. I spoke with the operator and Mark Atkins and requested the leave pressure on the IA — if it could be done safely — to generate a 24 to 48 hour TIO and temperature plot for my supervisor, Jim Regg, to evaluate. This was agreed to and I left at this point. The following are the readings I observed on this well today. Pretest Initial 15 30 45 60 IA 1496 1722 1756 1747 1738 1732 OA 180 180 180 180 180 180 Tubing 196 195 195 195 195 195 Attachments: None Non - Confidential ``" 9 I 2011 -1203_ MIT_ attempt_Nikaitchuq_OPt- 2_1g.doc 1 oft • • Page 1 Df 1 Regg, James B (DOA) U; tcAtl a c;py From: Nofziger Laura [ Laura .Nofziger @enipetroleum.com] Pr 206144-0 Sent: Thursday, November 03, 2011 1:46 PM To: Regg, James B (DOA); DOA AOGCC Prudhoe Bay; Brooks, Phoebe L (DOA); Maunder, Thomas E (DOA) Cc: Massey Steve; Lockhart Brent Subject: Pre Injection MITs Attachments: OPI -2 Conv_ Schematic_AS COMP 10- 24- 11.pdf; MIT chart.pdf; MIT Test Chart for 0106v1.pdf; Visio- 0106-05 Injector Schem_AS COMP_10- 17- 11.pdf; MIT NIK 0106 -05 & OP -12 11- 02- 11.xis Good afternoon, I am Brent Lockhart's replacement for Eni in the Anchorage office. I am the new SPOC for our company. have attached the Pre Injection MIT form, charts and wellbore diagrams for OP -12 and 0106 -05 at Nikaitchuq. We hope to begin injection on OP -12 tonight or tomorrow. 0106 -05 will begin injection in 1 -2 weeks. • � I Please let me know if you require any more information. Thanks, Laura Nofziger Sr. Production Engineer t. Ap'f"" Office 907 - 865 -3339 Cell 907 - 341 -9659 laura.nofziger @enipetroleum.com Message for the recipient only, if received in error, please notify the sender and read http: / /www.eni.it/disclaimer/ This message may contain information that is confidential, and is being sent exclusively to the Recipient. If you are not the designated Recipient, you are prohibited from utilizing, copying or divulging the information contained in this message,or taking any action whatsoever on the basis of the information herein. If you have received this message by mistake, we ask you to kindly inform the Sender and to delete the message. It is understood that, with regard to messages sent by its network, the Company is not responsible for any statements made or opinions expressed, that are not strictly related to the Company's operations. • 11/7/2011 0 • STATE OF ALASKA ALASKA OIL AND GAS CONSERVATION COMMISSION Mechanical Integrity Test Submit to: jim.rega alaska.00v; doa .aoocc.prudhoe.bavaalaska.aovi phoebe.brooksCilalaska.00v; tom.maunder(rDalaska.aov OPERATOR: Eni US Operating Co Inc ll 11171k FIELD / UNIT / PAD: Nikiatchuq Field / Oliktok Point Pad DATE: 11/02/11 OPERATOR REP: Frank Cormier AOGCC REP: Lou Grimaldi Packer Depth Pretest Initial _ 15 Min. 30 Min, 45 Min. 60 Min. Well 0106 -05 Type Inj. W TVD 3,689' Tubing 500 3,600 3,600 3,600 Interval 1 P.T.D. 2101650 Type test P Test psi 1500 Casing 600 2,600 2,600 2,600 P/F P Notes: Pre Injection MIT OA Well OPI -2 / Type Inj. W ' TVD 3,404' Tubing 100 4,000 4,000 4,000 Interval 1 P.T.D. 2061440' Type test P Test psi 1500 Casing 500 '3,500 ' 3,500 -3,500 P/F P Notes: Pre Injection MIT OA Well Type Inj. TVD Tubing interval P.T.D. Type test Test psi Casing P/F Notes: OA Well Type Inj. TVD Tubing Interval P.T.D. Type test Test psi Casing P/F Notes: OA Well Type Inj. TVD Tubing Interval P.T.D. Type test Test psi Casing P/F Notes: OA TYPE INJ Codes TYPE TEST Codes INTERVAL. Codes D = Drilling Waste M = Annulus Monitoring I= Initial Test G = Gas P = Standard Pressure Test 4 = Four Year Cycle I = Industrial Wastewater R = Internal Radioactive Tracer Survey V = Required by Variance N = Not Injecting A = Temperature Anomaly Survey T = Test during Workover W = Water D = Differential Temperature Test 0 = Other (describe in notes) Form 10 - 426 (Revised 06/2010) MIT NIK 0106 -05 OP -12 11- 02- 11.xls --'' 13g,.. „,,,,,,,iimir~ i_m , _,,,,,,,......,,,,,„.........,,..,,,,... , - 0. - r 7. OP,: r A i••= ir p . .... . . ..,'!„... . ...4,... . ,' • - W:, ,_..... 4 ,,.. .......„,..w..............4114 "- iii:.......F=.......,..., 4..„.. a 4 / 0 0 ,• -••—,„,.,-wmm.,,aiki.....fto. . _.............,A=,40.,,A....... 00 ,0, _.... ,......,......,, goN .0.0. o ra,.....,.......w.vi , '414%.„, \ v wor.r......., ° ror •,00 4,,,. , e •••• e a' ! A • ........v.,007..., _ 0 , .... it% ‘,., x 4111,44/ S 0 07100 ,,‘ N lagagep * * III le is 4 *scl itettf. 1 1 1 1 s 8 2 a ; ' 1� l Attk v i Illitittititailtv,s Yi' n: ��: illittlas 4.,,,.. zosi i Pitt* %X. .....% ............. , . 4 0,41, 00 , ,, 6, 110 lanl i I '4*414011714001•00 ) 0 1 N4.04.01°14114=1011116 e. ## ° 0 4%* 4/0110 0 I °0o , ,,,,M:4171.4...anmws= leriAA .•4 00 „ 00„...... fr 0 p °0o 4,W*7,irmturmsfw,..."0,••• ie; / I iiiiiiiiLiii0144111-171„ r i* l iaM o irst i si0 00 011111 0, :4 4 - -4 4 Zi*I4r"aMo I A i NOlorogag..0.0.• .1 sto g.0 ,, 4■4444144°A41%.4%404164.ftWAiff AM.Aiii■=001.0••••00044$ r. Vi 0£ arZ W � _— • --k e ip-s 2, Nikaitchuq Field — Oliktok Point Pad OPI -2 Injector ri 4-Y2" 12.6 ppf ( Conversi on to Injection) Production Tubing us o p r ng VIT, 3 joints, 4 -'/2" x 6 " , appro 10 2' As Completed /2,� 4 4 1 2066' MD 1801' TVD 57 ° Inc - 3.81" X- nipple for possible injec valve 2164' MD, 1850' TVD 63° Inc - 4 -' / KB " x 1" M GLM 2 000 tion psi A to T shear valve 1 0 , 5739' MD, 3383' TVD 67° Inc - 3.81" X- nipple G , VD, 70° Inc 5809' MD, 3 408' T - 3.725 " XN Nipple " ppf i ' MD, 3568' TVD, 85.7° I — Wireline Entry Guide 2022' TVD, 65° In ,, ' 10-3,- hAD ..10 .. 33' ... ' '- ' - '' Casing' 25 c '',1fo-,#. 4 d AH Retr. Packe , 5796' MD, 34 04' TVD 69° Inc •, ' • 7 -5/8" 29.7 ppf 3 - 9.2 ppf In termediate Producti on L Casing, 6696' MD, 3578' ,711' MD, TVD, 85° Inc 3,599' TVD Confidential M DK 10/ 26/11 • • SITATE [1[F ALASEKKA SEAN PARNELL, GOVERNOR ALASKA OIL .AND GAS 333 W. 7th AVENUE, SUITE 100 CONSERVATION COMMISSION ANCHORAGE, ALASKA 99501 -3539 PHONE (907) 279 -1433 FAX (907) 276 -7542 Mark Kuck Senior Completion Engineer ENI US Operating Co., Inc. 3800 Centerpoint Drive, Ste 300 a t, 6 Anchorage, AK 99503 Re: Nikaitchuq Oil Field, Schrader Bluff Oil Pool, OPI -2 Sundry Number: 311 -318 Dear Mr. Kuck: . Enclosed is the approved Application for Sundry Approval relating to the above referenced well. Please note the conditions of approval set out in the enclosed form. As provided in AS 31.05.080, within 20 days after written notice of this decision, or such further time as the Commission grants for good cause shown, a person affected by it may file with the Commission an application for reconsideration. A request for reconsideration is considered timely if it is received by 4:30 PM on the 23rd day following the date of this letter, or the next working day if the 23rd day falls on a holiday or weekend. ' S a t ount, Jr. DATED this day of October, 2011. Encl. • • RECENED nr,T 17 vos E �7,�� �Jr C �� 3800 Centerpoint Drive Suite 300 Anchorage, Alaska 99503 Marc D. Kuck Phone (907) 865 -3322 Email: Marc.Kuck @enipetroleum.com October 14, 2011 Alaska Oil and Gas Conservation Commission 333 West 7 Avenue, Suite 100 Anchorage, Alaska 99501 RE: Application for Sundry Approval for OPI -2 Conversion Dear Commissioners, ENI US Operating Co. Inc. hereby applies for a Workover Sundry for well OPI -2. This well was last completed in February 2007 by Kerr -McGee with an ESP completion. The well remained shut in after a short production test in 2007. The well was started up on production again in February of 2011 by Eni Petroleum to support new production facilities start-up operations. Eni's long -term plan for this well is to convert this well to water injection to support the surrounding producing wells in our water flood pattern. This sundry is for removal of the ESP system and to convert to an injector completion. The estimated date for beginning this work is October 17th, 2011. Please find attached for the review of the Commission forms 10 -403 and supporting documentation. If you have any questions or require further information, please contact me at 907 - 865 -3322. Sincerely, Marc D. Kuck Sr. Completion Engineer e.f - s AAA- 7 % 1 0 1 :9. P 10 ' 0 41/40 t 0 alp RECEIVED STATE OF ALASKA l ALASKA OIL AND GAS CONSERVATION COMMISSION Alaska Oil & Gas Cans. Commission APPLICATION FOR SUNDRY APPROVALS Anchorage 20 AAC 25.280 1. Type of Request: Abandon ❑ Plug for Redrill ❑ Perforate New Pool ❑ Repair Well ❑ Change Approved Program ❑ Suspend ❑ Plug Perforations ❑ Perforate ❑ Pull Tubing 0 • Time Extension ❑ Operations Shutdown ❑ Re -enter Susp. Well ❑ Stimulate ❑ Alter Casing El Other: Covert to Injector 2. Operator Name: 4. Current Well Class: 5. Permit to Drill Number: Eni US Operating Co. Inc. Development 0 ' Exploratory ❑ 206 -144 . 3. Address: Stratigraphic ❑ Service ❑ 6. API Number: 3800 Centerpoint Drive, Ste. 300, Anchorage, AK 99503 50- 029 - 23326 -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 ❑ OPI -2 • 9. Property Designation (Lease Number): 10. Field / Pool(s): 355024 - 373301- Nikaitchuq Schrader Bluff Oil Pool • 11. PRESENT WELL CONDITION SUMMARY Total Depth MD (ft): Total Depth TVD (ft): Effective Depth MD (ft): Effective Depth TVD (ft): Plugs (measured): Junk (measured): 12,711 3599 12711 3599 N/A N/A Casing Length Size MD TVD Burst Collapse Structural Conductor 115 16" 115 115 Surface 2563 10 3/4" 2563 2022 5,210 2,470 Intermediate 6696 7 5/8" 6696 3578 6,890 4,790 Production 6015 3 1/2" 12711 3599 slotted slotted Liner Perforation Depth MD (ft): Perforation Depth TVD (ft): Tubing Size: Tubing Grade: Tubing MD (ft): 6696 -12711 3578 -3599 3-1/2" L -80 6543 Packers and SSSV Type: Packers and SSSV MD (ft) and TVD (ft): N/A N/A 12. Attachments: 13. Well Class work: V Description Summary of Proposal � ass after propose wor fJ t .7-(' D Operations Program BOP Sketch I=1 Exploratory ❑ Development 43% ( Service ‚‚ (/ 14. Estimated Date for 13- Sep -11 15. Well Status after proposed work: Commencing Operations: Oil ❑ Gas ❑ WDSPL ❑ Suspended ❑ 16. Verbal Approval: Date: WINJ 0 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 Marc D. Kuck Printed Name Marc D. Kuck Title Sr. Completion Engineer Signature , f /J ,,,, Phone 907 865 -3322 Date j COMMISSION USE ONLY Conditions of approval: Notify Commission so that a representative may witness Sundry Number: -3 / �- l - Plug Integrity III BOP Test / Mechanical Integrity Test El Location Clearance Other: 7* e 4.7L C M 1T• 1A res K.L 4- 3 ,/ 55 o e 5- . 651 Ts f l�G` zo A�4 c. ZS iiZ -�6) 1 f q drew 4 !- Ma.` . Q tc.„ JDh fh :,J M/ /AL'v 36 - Subsequent Form Required: . /o -y -' APPROVED BY Approved by: // OMM .SIGNER THE COMMISSION Date: 161. 1„ 6 ..// RBDMS QCT 2 , `'' �' ; I / ./ /� i i Form 10 -403 Revised 1 . + ir ic 1, ` f. it Submi Or , ( C• I • • • OPI -2 Conversion - Additional Data Sheet 10/13/11 Workover Objectives: • Objective of this workover is to pull the current ESP tubing completion and convert the well to injection with a new injection tubing completion. • Complete the planned work with no HSE accidents or incidents. • Complete work within planned time and within budget. Well History: OPI -2 was originally completed by Kerr -McGee in 2007. The well was completed as a producer was flow tested for approximately three days. The well was then shut in until February of 2011 when it was started up by Eni as a producer and has been in operation since that time. Pressure Data: This well is expected to have a bottom hole pressure of approximately 900 psi due to depletion. 8.8 ppg hot seawater with 3% KCI is planned as kill wt fluid for this workover. Operational Plan Summary: 1. MIRU Nabors 245E. 2. Pump 8.8ppg kill wt fluid. Remove production fluid from completion wellbore. 3. Set BPV. ND tree and NU BOP and test to 3500 psi, annular to 2500 psi 4. Pull 3 -1/2" tubing and ESP completion. 5. Continue POOH and LD ESP assembly. 6. Rig up wireline through rig and run USIT with a -line tractor to verify cement for injection completion. 7. RIH with new injection completion and place packer 300' below top of cement and below 7 7.-0o' confining shale interval. G go 0 � � �.,(� e, OK �- a • 4 , 4 Y'L ; (y. fl 8. Land hanger, RILDS, test hanger, and set packer. / 1 9. Install BPV and nipple down BOP. L -_ M r r- 1,4 10. NU tubing adapter and tree. 11. Pull BPV, install test plug and test tree. 12. Circulate Freeze protect through tree down IA taking returns up tubing. 13. Shut in well. 14. RDMO. Attachments: • Current producer well schematic • Planned injector Schematic • Original Permit to Drill ti Nikaitchuq Field — Oliktok Point Pad OPI -2 Injector %I 4 - 12.6 ppf • Production (Conversion to Injection) 2nd Tubing LUIS operating VIT, 3 joints, 4 - x 6 ", approx 120' +/- 2,100' MD - 3.81" X- nipple for possible injection valve As Planned +/- 2200' MD - 4 - x 1" KBMG GLM, 2,000 psi A to T shear valve • +/ -5750' MD - 3.81" X- nipple +/- 5824' MD - 3.725" XN with RHC Plug 10 -3/4" 45.5 ppf Casing, 2533' MD, 2022' TVD 65° Inc +/- 6580' MD - 3.725" XN with RHC Plug AHC Retr. Packer, N. 5800' MD, 69° inc 7 -5/8" 29.7 ppf 3 - 9.2 ppf Intermediate Production Liner, Casing, 6696' MD, 3578' 12,711' MD, TVD, 85° Inc 3,599' TVD Confidential MDK 1 0/14/1 1 • • OPI -2 Casing Weight Grade Length Conductor 16" 65# L -80 80 Surface 10 -3/4" 45.5# L -80 2525.15 Intermediate 7 -5/8" 29.7# L -80 6658 Liner 3 -1/2" L -80 6168 Tubing 3 -1/2" 9.3# L -80 _ 6543 ESP Equipment • Centrilift 6 Fin Centralizer, 2 7/8" base x 5.85" Blades, 3 IF box, (63569 – SPECIAL), 25 lbs. Centrilift PumpMate Pressure Sensor, (PCT 7279), 3.375" Body x 4.0" Flange, 67.5 lbs. Centrilift Series 562, Model KMHG Motor, 152 HP, 2325 V, 40 Amp (Serial # ), 1003 lbs Centrilift Series 513, Model GSB3 DB LT H6, (Serial # 31G92771), 267 lbs • Centrilift Series 513, Model GSB3 DB UT HL H6 PFSA, (Serial # 31G92772), 267 lbs Centrilift Series 513, Model GPARCINT Intake, (Serial # ), 42 lbs Centrilift Series 513, Type GC2900, Model GPMT AR 1:1, Pump, 105 Stage, Type MT, (Serial # 01G85464), 955 lbs Centrilift Series 513, Model GPDIS, Pump Discharge, 3 EUE, 8 rd, (Part # ), 12 lbs Halliburton 3 '/2" 9.3# L -80 "XN" Nipple with 2.750" No -Go Profile Halliburton 3' /2" 9.3# L -80 "X" Nipple with 2.813" Profile Vetco Tubing Hanger for 4' /2" IBT Tbg with ESP cable feed and packoff assembly and 1 – control line port and packoff assembly. (BIW 5KV 160 amp Penetrator) Wellhead Make Type Size Pressure Rating Vetcogray Slimline 16" X 10 -3/4" x 7 -5/8" x 4 -1/2" 5000 _ --- — TVD Surf l I hilt & Fa2Eo. = I:h OPI -2 I I r_.. to ?l- 6 <c ft (Schrader Bluff Horizontal) KOP =300' PIG Pr E . 020 grainiga — 500' BUR < 6'100' §:Mg 101:1 - 1000' 13" Hole To m ESP Running Order (top - down): £ • Landing joint Pi . - 1500' 3 -112 ", 9.3(t. L -80. IBT • 4 -1/2' Tubing Hanger wi CL Port & Penetrator a • • 4 -1/2' x 3 -1/2" Cross Over Pup Joint 10 -3/4", 45.5#, L -80, BTC -M • 220 Jts of 3 -112' IBT Tubing j I■ 2563' MD • 3-1/2' IBT Pup Joint Halliburion 3-1/2" X Nipp)e anew - 2000' I • 3-1/2' IBT Pup Joint EMI I • 1 joint of 3-1/2' IBT Tubing - M t •3-12` IBT Pup Joint • Hal/,burton 3-1/2' XN Nipple - 2375' �. • 3 -12' IBT Pup Joint • 2 Its of 3 -1.Q" IBT Tubing �� 1- • Centrilift's ESP assembly. Top at 6533' MD (r • C0'tf '1'F'ump Mate Gauge wet Centralizer: ): Bottom at 6590' MD ® - 2750' (: mo4aomr Tubing] Deployed ESP t 1 N 1 1 — 3500' '. ' 5 � _ 3 -1:2 ". 5.3P. L -60 EUE 5 Wttec Liner . —�� I _ . I `- - - _ - 6 -1!2" Hole. OBM 12711' MD I -_ -_- - L — — — — 4 7 -5/8 ", 29.76, L -80, BTC -M - 3875' Pilot Hole 6696' MD - __- 6711' MD • • sritA\ p - A ,{ IU► FRANK H. MURKOWSKI, U � �� Oar, AND CMS 333 W. 7" AVENUE. SUITE 100 II CONSERVATIOX COM SSION ANCHORAGE, ALASKA 99501.3539 Mr. Michael Stockinger PHONE (907)279-1433 Drilling Manager FAx (907) 276 7542 Kerr McGee Oil and Gas Corporation 3900 0 Street Ste 400 Anchorage, AK 99503 Re: Exploratory, Oliktok 1 -2 Kerr McGee Oil and Gas Corporation Permit No: 206 -144 Surface Location: 2055' FNL &1526' FEL of Sec 5, T13N, R9E, UM Bottomhole Location: 100' FSL & 400' FWL of Sec 30, TI4N, R9E, UM Dear Mr. Stockinger: Enclosed is the approved application for permit to drill the above referenced exploratory 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. A weekly status report is required from the time the well is spudded until it is suspended or plugged and abandoned. The report should be a generalized synopsis of the weeks activities and is exclusively for the Commission's internal use. All dry ditch sample sets submitted to the Commission must be in no greater than 30' sample intervals from below the permafrost or from where samples are first caught and 10' sample intervals through target zones. In accordance with 20 AAC 25.005(f), all records, data and logs acquired for the pilot hole must be clearly differentiated in both well name Oliktok Point I -2 PH and API number 50 -029- 23326 -70 from records, data and logs acquired for well Oliktok Point 1 -2. 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 req • - d test, contact the Commission's petroleum field inspector at (907) 659 -3607 (pager). al r 1. irman DATED thi day of November, 200 cc: Department of Fish & Game, Habitat Section w/o encl. Department of Environmental Conservation w/o encl. I • 12/18/06 STATE OF ALASKA ALASKA OIL AND GAS CONSERVATION COMMISSION r ` -- t#98 PERMIT TO DRILL a c�± ?�tr+ ':3a ' -' v ii ,,,� , �u ' sJr,�ri�•oj 20 AAC 25.005 6y 10.(0-s - tJ ' s; la. Type of Work: 1b. Current Welt Class: Exploratory 0 - Development 00 t,i, lc, Specify if well is pro posed i d ' ' 4 Drill ©• Redrill D Stratigraphic Test [] Service ❑ Development Gas ❑ Coalbed Methane j] Gas Hydrates ❑ Re -entry ❑ Multiple Zone ❑ Single Zone ❑ Stale Gas ❑ 2. Operator Name: 5. Bond: Blanket icr Single Well ❑ 11. Well Name and Number: Kerr McGee 00 & Gas Corporation Bond No. .1.7.98138'r it • 1kiga-^"OGedok Point ),/r/^ 2- 3. Address: 6. Proposed Depth: . 12. Field/Pool(s): I OYD 3900 C Street, Ste 400, Anchorage, AK 99503 MD: 12 TVD: 3,672 Exploration 4a. Location of Well (Governmental Section): 7. Property Designation: Surface: 2055' FNL & 1526' FEL of Section 5, 713N, R9E UM / AOL355024 . Top of Productive Horizon: 8. Land Use Permit: 13. Approximate Spud Date: 750' FSL & 500' FEL of Sectio 31. T14N, R9E UM ADL417493 1 -1"!nr Total Depth: X � OP' '9. Acres in Property: 14. Distance to tl esA,,, 3Wf4 4 100' FSL &ferFWL of Section , T14N, R9E UM 2ga@'SE ages A ,o -10.04 Property: OW aP9 ��'` 4b. Location of Well (State Base Plane Coordinates): 10. KB Elevation 15. DstaTtce to Nearest Well Surface: x- 516753 y- 6,036,577 Zor 4 (Height above GL): 52' feet Within Pool: Nonni 18. Deviated wells: Kickoff depth: u, 2- ,Zdb feet e,.24 17. Maximum Antidpated Pressures in pstg (see 20 MC 25.035) Maximum Hole Angle: 90 degrees Downhole: 1927• Surface: 1521 - 18. Casing Program: Specifications Top - Setting Depth - Bottom Cement Quantity, c.f. or sacks Hole Casing . Weight _ Grade Coupling Length MO 71110 MD 7VD (Including stage data) N/A 16" 65 L -80 80 Surface Surface • 80 . 80 13 -1/2" 10 -3/4" 451-80 BTC-M 2600 Surface Surface • 2600 • 2052 425 sx PF L (314 buts) Lead 209 sx "G" (41 bbls) Tail 9-7/8" 7-5/8° 29.7 L-80 BTC-M 6802 Surface Surface • 6802 • 3685 515 sx "G"4106 bbls) Tail Ls r 3`!a" ' A Nz ' 1--9* 1 aT" to tt&1' (tOO ,(QS' 1 aQ 3 fo`17. Sto t-4�rj 19. PRESENT WELL CONDfl1ON SUMMARY (To be completed for Reddlt and Re-Entry Operatons) Z,t1 tk1 r 0. Total Depth MD (ft): '' Total Depth TVD (ft): - Plugs (measured): Effect, Depth MD (ft): Effect. Depth TVD (ft): Junk (measured): Casing Length Size Cement Volume MD TVD Conductor /Structural Surface Intermediate - Production Liner Perforation Depth MD (ft): Perforation Depth WO (ft): 20. Attachments: Filing Fee 0 BOP Sketch 12 Drilling Program 12 Time v. Depth Plot © Shallow Hazard Analysis ri Property Plat el Diverter Sketch p Seabed Report ❑ Dulling Fluid Program Q 20 AAC 25.050 requirements 0 21. Verbal Approval: Commission Representative: Date 22. I hereby certify that the foregoing is true and correct. Contact Printed Name Mr. Michael Stookinger Title Drilling Manager, Kerr McGee 011 & Gas Corporation Signature h7ui� > �� Phone 2d - 6 73 - 6 ii/e) Date / E - 3 - p 6 !! Commission Use Only Pemdt Marker: r: Drfte /. ' / API Number: 4L z33�'O Pate: ft APP I ' letter for other Conditions of approval : If box is checked, well may not be used to explore for, test, or produce ooalbed me ane, gas hydrates, or gas contained in shales:❑v' z 7� ;7 Samples req'd Yes(1 No ❑ .g raga: Yesg;No❑ o t t�`.t0�Nf"ls.J k-1 \aVV'ICt -j� H measures: Yes0 No ler, Di • -- onal vy raga: Yesggl No❑ DATE: Ii-r• • j1 OVED/OYTMECOMMSSION L , COMMISSIONER Form 10 -401 Revised 12/2005 Submit i •'• plicate DUPLICATE ar .... 01 .. • Schlumberger en WELL Oliktok Point 1 -2 1/4 Mile Plot I FIELD Nikaitchuq I STRUCTURE Oliktok Point Magnetic ParameGn Surface Location NA027 Alaska State Plane, Zone 04. US Feet Miecellanaous Model: BOOM 2006 Dec 80.844' Dab: January 27, 2007 I Let N 70 30 40.023 Northing, 6036577.31 BUS Ond Com. 0.12924264' I Slat: 0102 ND Rat KB(53.656 above MSLI Meg Dec: 23572' F5. 57619.0, Lon: W 149 51 46.449 Sestina. 516753.79RU5 Scale Fact, 0.99890032 Plan: Oliktok Point 1'2 Srvy Dat January 27, 2007 0113 -03 (P6) OP10 -09 0115 -S4 (P5) 0P09 -S1 OPO4 -07 0107 -04 -10800 -9000 -720' -5400 -3600 OP14 -S3 800 0 7 I I I I 9000 9000 • � rya °• I OPO4 -07PB1 • 3996 TVD OP17 -02 b 3869 TVD • h WE' ��o�' �� 3867 TVD • 3904 TVD •� "' • .7 • • • 3874 TVD • OP17 -02PB1 � • b , 4 " - 1�� �4: ct • • liktok Poi 111 -2 5 ,s,'\'' d • OP08 -04 °• � ot��' ,-.,`% ,-.,`% Av pp55y�p • ",*' h h^ 4 ° • , 34 'e, ° • 'y �i{U$[41]. 3859TVD • 7200 n' �" � � ° .� � 0F � • • 65 C I11 1 ��, — 7200 c' �o • "" fop �° °o ���" • OP • - !'9 Ir) g 0124 -08 (P9) S° O• • 49'.*. ' �'� 4 35 0 • e • � • 4 " " 'do- ,° 0 • � • 3858 TV 4° b b • 4...,<...\4z) • •� 1. TVD r, c %�' , it A .4 'S . 'S� n,^ • ,� • A.. Y1" • 3862 TVD • Z � 5 ^ Q • ` �� � ° • S \ ° . 9001^ „s 7000T D • OP23- VVVV02 55 4' y o N , • ' ,� ,,, 5� 5400 N �c ° • .6 'f • 6 s° 4 Ft 1 s D • 5400 • • o • � „,,,, • \ • 5 ^�O , 65 33751 TVD � 1 I o � � • � � 5 0 � ° • • 3 soot TSV .111 -� P. ° • ' � 0” ,p • @ 5� 0 • # •• 666�SJO . )P16 -03 p1 s � e 0 6 6 Oliktok - , -2f�B ° • . 6 TVD u T I • o- s • • �5 ■ .� • • 668 62 TV.. rtt T' E • 300' D • • (D 3600 ° a �' � H BO • N • D • €0 V ' r .: — 3600 • -its 0 • °• 5� �� -'. .,,ST OP26 uSP02 cn �op5 �° • 5q <J • • r • O 0 -07 114 ° 6 ,o ^ • ^, ;5 5 ^ bti � ° 5 � 5 �fi ° ' 4aooT % ( ) ,b.� 5 ��,° �5 \ b �� \.. I OP21 -VWV01 (P3) V 1800 � ' ` . i I ( sob — 1800 •� if s • • OP03 -105 . 1 _ Oliktok Point I -1 o i ,. s OP05 -06 -10800 -9000 -7200 -5400 -3600 -1800 0 0106 -05 «< W Scale = 1(in):1800(ft) E »> • • MEMORANDUM State of Alaska Alaska Oil and Gas Conservation Commission TO: Jim Regg 3 i ij DATE: March 26, 2011 P. I. Supervisor FROM: Lou Grimaldi SUBJECT: No Flow Verification Petroleum Inspector ENI Petroleum Oliktok Pt. 1 -2 PTD #206 -144 L" Nikaitchuq Field D APR 0, 42.01L Saturday, March 26, 2011; I witnessed the No -Flow test on ENI Petroleum's well Oliktok Point 1 -2 in the Nikaitchuq Field. I had been in contact with the operator Delton Carrol about equipment and procedure. When I arrived he was very prepared for the test. 1 arrived at the facility to find the well open to atmosphere. The tubing and annulus were tied together with a "C" section used to vent free gas on the backside to the flowline. This well is a packer -less completion. After verifying the position of the pertinent valves The Flow (if any) would be measured by an Erdco "Armor flo" gas meter capable of measuring 150 -1500 scf /hour of gas flow. There also was a calibrated 30 psi "Test" gauge (0.1 psi increment) used to monitor the tubing /annulus pressure. A' turn block valve downstream of the gauge was used to close the flow from the tubing /annulus to atmosphere /tankage. I required 2 equal -time tests, both involving shut -in and flowing intervals. During the 2 tests, tubing pressure never rose above 3.9 psi and sustained gas flow was well below the measurable capacity of the flow meter (150 scf). There was no fluid produced to surface during the entire no flow test I monitored. The following table describes the details of the test: 2011 - 0326_ No- Flow_Nikaitchuq OliktokPt_I- 2_1g.doc 1 of 2 • Nikaitchuq Oliktok Pt 1 -2 No Flow Test Time Pressure Flow Notes (scf /h r) 1230 0 Whisper Flowing to Bleed trailer 1245 0 Shut -in well 1250 0.3 Well Shut -in 1255 0.5 Well Shut -in 1300 1.0 Well Shut -in 1315 1.7 Well Shut -in 1330 2.6 Well Shut -in 1345 3.3 Well Shut -in 1400 3.9 Well Shut -in, 3.0 _ 700 Open for 1st flow period. Flowing to Bleed trailer 1402 0.1 <150 Flowing to Bleed trailer 1405 0 Whisper Flowing to Bleed trailer 1415 0 Whisper Flowing to Bleed trailer 1430 0 Whisper Flowing to Bleed trailer, Shut -in well 1435 0.2 Well Shut -in 1440 0.6 Well Shut -in 1445 0.8 Well Shut -in 1500 1.6 Well Shut -in 1515 2.6 Well Shut -in 1530 3.3 Well Shut -in 1545 3.9 Well Shut -in, 3.0 700 Open for 2nd flow period. Flowing to Bleed trailer 1547 0 Whisper Flowing to Bleed trailer 1600 0 Whisper Flowing to Bleed trailer 1615 0 Whisper Flowing to Bleed trailer 1620 0 Whisper Turned well over to production. The test was concluded at this point. I observed equal buildup in the second shut - in test and quicker bleed down in the second flow test. This well appears to meet the criteria set forth in 20 AAC 25.265 for No -Flow status. Attachments: None Non - Confidential 2011 -0326 No -Flow Nikaitchuq OliktokPt_I- 2_lg.doc 2 of 2 ~ ``~•rv '~,a_ MICROFILMED ..:...6/30/2010 DO NOT PLACE ANYNEW MATERIAL UNDER THIS PAGE C'\temp\Temporary Internet Files\OLK9\Microfilm_Marker.doc ~ ~~~ DATA SUBMITTAL COMPLIANCE REPORT 3/11 /2009 Permit to Drill 2061440 Well Name/No. OLIKTOK POINT I-2 Operator KERR-MCGEE OIL 8~ GAS CORP API.. No. 50-029-23326-00-00 MD 12711 TVD 3599 Completion Date 2/4/2007 Completion Status 1-OIL Current Status 1-OIL UIC N REQUIRED INFORMATION Mud Log Yes Samples No Directional Survey es DATA INFORMATION Types Electric or Other Logs Run: LWD --Quad Combo (data taken from Logs Portion of Master Well Data Maint Well Log Information: Log/ Electr Data Digital Dataset Log Log Run Interval OH / rye meairrmc rvumoer Name acme meaia no scan: stop ~n Kecervea ~ommencs D C Las 045 Induction/Resistivity 173 6715 Open 4/20/2007 P61 ROP, CTNA, Res, EWR, Temp w/Graphics PSP, Adobe Log 15045 Neutron 2 Col 0 6715 Open 4/20!2007 P61 MD ROP, DGR, EWR, CTN, ALD 28-Jan- 2007 Log 15045 Neutron 2 Col 0 6715 Open 4/20/2007 PB1 TVD ROP, DGR, EWR, CTN, ALD 28-Jan- 2007 Log 15045 Gamma Ray 5 Col 0 6715 Open 4/20/2007 P61 MD GR, BAT 28-Jan- 2007 Log 15045 Gamma Ray 5 Col 0 6715 Open 4/20/2007 P61 TVD GR, BAT 28-Jan- 2007 Log 15045 Induction/Resistivity 5 Col 0 3698 Open 4/20/2007 PB1 MD ROP, DGR, EWR, CTN, ALD 28-Jan- 2007 Log 15045 InductionlResistivity 5 Col 0 3698 Open 4/20!2007 PB1 TVD ROP, DGR, EWR, CTN, ALD 28-Jan- 2007 I ED C Las 5046 Induction/Resistivity 0 9747 Open 4/20/2007 PB2 ROP, EWR, CTN, DEN w/Graphics PDF, PSP /~ `L'og 15046 Induction/Resistivity 5 Col 0 9747 Open 4/20/2007 PB2 MD ROP, DGR, EWR, CTN, ALD 25-Jan- 2007 Log 15046 Induction/Resistivity 5 Col 0 3601 Open 4/20/2007 PB2 TVD ROP, DGR, EWR, CTN, ALD 25-Jan- 2007 Log 15046 Induction/Resistivity 2 Col 0 9747 Open 4/20/2007 PB2 MD ROP, DGR, EWR, CTN, ALD 25-Jan- 2007 DATA SUBMITTAL COMPLIANCE REPORT 3/11/2009 Permit to Driil 2061440 Well Name/No. OLIKTOK POINT I-2 MD 12711 TVD 3599 Completion Date 2/4/2007 Log 15046 Induction/Resistivity Log Log i Log Log 15046 15046 C Las t/f5061 15061 15061 15061 15142 Gamma Ray Gamma Ray Induction/Resistivity Induction/Resistivity Induction/Resistivity Gamma Ray Report: Final Well R Operator KERR-MCGEE OIL & GAS CORP API No. 50-029-23326-00-00 Completion Status 1-OIL 2 Col 5 Col 5 Col 5 Col 2 Col 5 Col 15142 Mud Log 5 Col 15142 Mud Log 5 Col 15142 Mud Log 2 Col 15142 Mud Log 2 Col 15142 Mud Log 5 Col 15142 Mud Log 2 Col 15142 Mud Log 5 Col 15142 Mud Log 2 Col 15142 See Notes 2 Col 15142 See Notes 2 Col Current Status 1-OIL UIC N - 0 3601 -- Open - 4/20/2007 --__ PB2 TVD ROP, DGR, EWR, CTN, ALD 25-Jan- 2007 0 9747 Open 4/20/2007 PB2 MD DGR, BAT 25-Jan- 2007 0 3601 Open 4/20/2007 PB2 TVD DGR, BAT 25- Jan-2007 0 12711 Open 4/24/2007 LAS, ROP, GR, EWR, CTN w/Graphics PSP 0 12711 Open 4/24/2007 ROP, DGR, EWR< CTN, ALD 28-Jan-2007 0 12711 Open 4/24/2007 ROP, EWR, DGR, CTN, ALD 28-Jan-2007 0 12711 Open 4/24/2007 DGR, BAT 28-Jan-2007 0 12700 Open 5/22/2007 End of Well Report: Gen Info, Daily Summ, Daily Ops, Morning Reports, Mu Reports, Show Reports, Survey Reports, Day vs Depth, Data CDs w/Graphics PDF, WRD, and TXT w/PB1 and 2 0 12711 Open 5/22/2007 MD Combo Mud Log 28- Jan-2007 0 6715 Open 5/22/2007 P61 MD Combo Mud Log 28-Jan-2007 0 12711 Open 5/22/2007 MD Combo Mud Log 28- Jan-2007 0 6715 Open 5/22/2007 P61 MD Combo Mud Log 28-Jan-2007 0 3702 Open 5/22/2007 PB1 TVD Combo Mud Log 28-Jan-2007 0 3702 Open 5/22/2007 P61 ND Combo Mud Log 28-Jan-2007 0 9747 Open 5/22/2007 P62 MD Combo Mud Log 28-Jan-2007 0 9747 Open 5/22/2007 P62 MD Combo Mud Log 28-Jan-2007 9390 12660 Open 5/22/2007 MD Show Log 6030 6510 Open 5/22/2007 P61 MD Show Log • DATA SUBMITTAL COMPLIANCE REPORT 3/11/2009 Permit to Drill 2061440 Well Name/No. OLIKTOK POINT I-2 MD 12711 TVD 3599 Completion Date 2/4/2007 og 15142 See Notes ED C''15142 Report: Final Well R og 15142 See Notes L g 15142 See Notes Log 15142 See Notes Well Cores/Samples Information: Name Interval Start Stop ADDITIONAL INFORMATION Well Cored? ~ "V Chips Received? Y7~tJ., Analysis `l'fT'r Received? Comments: Operator KERR-MCGEE OIL 8~ GAS CORP API No. 50-029-23326-00-00 Completion Status 1-OIL Current Status 1-OIL UIC N 2 Col 5880 _- 6720 Open 5/22/2007 - _ P62 MD Show Log 0 12700 Open 5/22/2007 End of Well Report: Gen Info, Daily Summ, Daily Ops, Morning Reports, Mu Reports, Show Reports, Survey Reports, Day vs Depth, Data CDs w/Graphics PDF, WRD, and TXT w/P61 and 2 2 Col 120 12710 Open 5/22/2007 MD Engineering Log 2 Col 120 6715 Open 5/22/2007 P61 MD Engineering Log 2 Col 120 9745 Open 5/22/2007 P62 MD Engineering Log Sample Set Sent Received Number Comments __ - _ -- - Cores and/or Samples are required to be submitted. This record automatically created from Permit to Drill Module on: 11/14/2006. Daily History Received? ~ N Formation Tops ~ / N Compliance Reviewed By _ __. - Date: 1.4_._~ ~~_ r-~ U __ _, r Sperry Drilling Services To: Alaska Oil ,8~ Gas Conservation Commission Librarian ~~ 333 West 7 Avenue, Suite 100 Anchorage, AK, 99501 Re: Final Mudlogs: Oliktok Point I-1, & Oliktok Point I-2, PB-1, PB-2 The technical data listed below is being submitted herewith. Please address any problems or concerns to the attention of: Steve Carroll, Sperry Drilling Services, 6900 Arctic Blvd., Anchorage, AK 99518, Ph: 907-273-3538 ~o~- ~3~ Oliktok Point I-1 tSad /~+ ~''_ ~ ~ 65 ~~~/ End of Well Report 1 Copies 2" MD Combination Mudlog (40-8900') 1 Copies 2" ND Combination Mudlog (40-3912') 1 Copies 5" Show Log (8000-8990') 1 Copies 5" ND Show Logs (3400-3912') 1 Copies CDROM 1 Copies Oliktok Point I-2, P61, PB2 a~ _~G~/L/ ~ ~ S~G~a End of Well Report 1 Copies 5" MD Combination Mudlog (0-1,711') 1 Copies 2" ND Combination Mudlog (0-3702') 1 Copies 5" MD PBi Combination Mudlog (0-6715') 1 Copies 5" TVD PBi Combination Mudlog (0-3702') 1 Copies 2" MD P61 Combination Mudlog (0-6715') 1 Copies 2" ND PBl Combination Mudlog (0-3702') 1 Copies 5" MD PB2 Combination Mudlog (0-9747') 1 Copies 2" MD PB2 Combination Mudlog (0-9747') 1 Copies 5" Show log (9390-12,650') 1 Copies 5" PB1 Show Log (6030-6510') 1 Copies 5" PB2 Show Log (5880-7020') 1 Copies CD ROM 1 Copies Please sign and return one copy in the self addressed envelope provided. Print ~~anit"' ~ 'i.i ~ L! w~ (~1~(a.(it.riL V c.~~ Signature Date WELL LOG TRAN5MITTTAL To: Alaska Oil & Gas Conservation Commission 333 West 7 Avenue, Suite 100 Anchorage, AK 99501 Attn: Librarian RE: MWD Formation Evaluation Logs: Oliktok Point I-2 API#: 5 0-029-23 326-00 CJ April 24, 2007 AK-MW-4794321 The technical data listed below is being submitted he--ewith. Please address any problems or concerns to the attention of: Rob Kalish, Sperry Drilling Services, 6900 Arctic Blvd., Anchorage, AK 99518 Oliktolc Point I-2 5"/100' MD Resistivity, Garnina Ray, Res. &Neutron-Density Logs: 1 Color Log 2"/ 100' MD Resistivity, Gamma Ray, Res. c4c Neutron-Density Logs: 1 Color Log 5"/100' 1VID GR-BAT Sonic Logs: 1 Color Log Digital Data, Final Graphic Files, & Surveys: 1 CD Rom 9 ~~~ r f' ~ Received by & date: ~~/~-__.. APR ~ 4 2001 Ull & Gas Cons. Commission Anchcxag~ a6~ - /yy ~~s o~ ~ WELL LOG TRANSMITTAL C • WELL LOG TRANSMITTAL To: Alaska Oil & Gas Conservation Commission April 19, 2007 333 West 7 Avenue, Suite 100 Anchorage, AK 99501 Attn: Librarian RE: MWD Formation Evaluation Logs: Oliktok Point I-2 PB2 AK-MW-4794321 API#: 5 0-029-23 3 26-71 The technical data listed below is being submitted herewith. Please address any problems or concerns to the attention of Rob Kalish, Sperry Drilling Services, 6900 Arctic Blvd., Anchorage, AK 99518 Oliktok Point I-2 PB2 5"/100' MD Resistivity, Gamma Ray, Res. &Neutron-Density Logs:. 1 Color Log 2"/100' MD Resistivity, Gamma Ray, Res. &Neutron-Density Logs: 1 Color Log 5"/100' TVD Resistivity, Gamma Ray, Res. &Neutron-Density Logs: 1 Color Log 2"/100' TVD Resistivity, Gamma Ray, Res. &Neutron-Density Logs: 1 Color Log 5"/100' MD GR-BAT Sonic Logs: 1 Color Log 5"/100' TVD GR-BAT Sonic Logs: 1 Color Log Digital Data, Final Graphic Files, & Surveys: 1 CD Rom j}@~ 0 Received by & date: ~rre WELL LOG TRANSMITTAL • • WELL LOG TRANSivTITTAL To: Alaska OiE & Gas Conservation Commission April 19, 2007 333 West 7 Avenue, Suite 100 Anchorage, AK 99501 Attn: Librarian RE: MWD Formation Evaluation Logs: Oliktok Point I-2 PB 1 AK-MW-4794321 API#: 50-029-23326-70 The technical data listed below is being submitted herewith. Please address any problems or concerns to the attention of Rob Kalish, Sperry Drilling Services, 6900 Arctic Blvd., Anchorage, AK 99518 Oliktok Point I-2 PBl 5 "% 100' MD Resistivity, Gamma Ray, Res. &Neutron-Density Logs: 1 Color Log 2"/100' MD Resistivity, Gamma Ray, Res. &Neutron-Density Logs: 1 Color Log 5"/100' TVD Resistivity, Gamma Ray, Res. &Neutron-Density Logs: 1 Color Log 2"/100' TVD Resistivity, Gamma Ray, Res. &Neutron-Density Logs: 1 Color Log 5"/100' MD GR-BAT Sonic Logs: 1 Color Log 5"/100' TVD GR-BAT Sonic Logs: 1 Color Log Digital Data, Final Graphic Files, & Surveys: 1 CD Rom ~`~ Received by & date: ~ ~ ~~~~ ~~~ WELL LOG TRANSMITTAL STATE OF ALASKA ALASKA OIL AND GAS CONSERVATION COMMISSION WELL COMPLETION OR RECOMP TI REPORT AND LOG C1 a. Well Status: Oil Gas^ Plugged ^ Abandoned^ 20AAC25.105 GINJ ^ WINJ ^ WDSPL ^ No. of Completions Suspen ^ 20AA 5.110 ~\ Other 1b. Well Class: Development ^ Exploratory Service ^ Stratigraphic Test^ 2. Operator Name: Kerr McGee Oil &Gas Corp 5. Date Comp., Susp., ora,D Aband.: Susp.Z~ 4 12~ Permit to Drill Number: ~ 206-144 3. Address: 3900 C Street, Ste 402, Anchorage, AK 99503 6. Date Spudded: 11J?.9/~80t' /~ +~-1o'a9 13. API Number: 50-23326-00 ~o'OL~{- Z33ZG 4a. Location of Well (Governmental Section): Surface: 2055' FNL & 1526' FEL of Section 5, T13N, R9E UTM ' 7. Date TD Reached: ~ ~ ~.~ 1/29/2007 - 3 ~ 14. Well Name and Number: Oliktok Point I-2 `j t' Top of Productive Horizon: 4544' FNL & 462' FEL of Section 31 T14N, R9E UTM 8. KB Elevation (ft): 52' .- C.vj 15. Field/Pool(s): Exploration Total Depth: 5276' FNL & 4349' FEL of Section 30 T14N, R9E UTM 9. Plug Back,DepthF~1D+TVD): fZt'~/1~~1/~' /~'~~~T4'~ 4b. Location of Well (State Base Plane Coordinates): Surface: x- 516753 y- 6036577 ~ Zone- 4 10. Total Depth (MD +TVD): 12,711 + 3,599 ' 16. Property Designation: ADL355024 ` TPI: x- y- Zone- Total Depth: x- 508612 ' y- 6043901 ~ Zone- 4 11. Depth Where SSSV Set: NA 17. Land Use Permit: ADL417493 18. Directional Survey: Yes ~ No ^ 19. Water Depth, if Offshore: NA feet MSL 20. Thickness of Permafrost: 1676 21. Logs Run: LWD -- Quad Combo 22. CASING, LINER AND CEMENTING RECORD CASING WT. PER GRADE SETTING DEPTH MD SETTING DEPTH TVD HOLE SIZE CEMENTING RECORD AMOUNT FT TOP BOTTOM TOP BOTTOM PULLED 10.75 45.5 L-80 0 2563 0 2024 - 13" *1 ~ 7.625 29.7 L-80 0 6696 ~ 0 3578 - 9-7/8" ~~ + 23. Perforations open to Production (MD +TVD of Top and Bottom 24. TUBING RECORD Interval, Size and Number; if none, state "none"): ~ SIZE DEPTH SET (MD) PACKER SET (MD) Slotted Liner from 6,696' MD + 3,578' TVD to 12,711' MD + 3,599' TVD. " 3.5 6560 na 25. ACID, FRACTURE, CEMENT SQUEEZE, ETC. DEPTH INTERVAL (MD) AMOUNT AND KIND OF MATERIAL USED 26. PRODUCTION TEST Date First Production: 2/6/2007 Method of Operation (Flowing, gas lift, etc.): ES P Date of Test: 2/10/2007 Hours Tested: 78 Production for Test Period ~ Oil-Bbl: 5280 ~ Gas-MCF: 359 Water-Bbl: 445 Choke Size: 128/64 Gas-Oil Ratio: 72 Flow Tubing Press. ~ 42 Casing Press: 0 Calculated 24-Hour Rate ~-- Oil-Bbl: ~ 2034 Gas-MCF: 145 Water-Bbl: 0 Oil Gravity -API (corr): 19.2 27. CORE DATA Brief description of lithology, porosity, fractures, apparent dips and presence of oil, gas or water (attach separate sheet, if necessary). Submit core chips; if none, state "none". _ _ NONE CUPJ€f'!.wTiOr~re 1 Q ~~~+~v~~ 2• c/.G 7 _ ~~. MAY ~ 120D? ~ v' R~ MAR 3 0 2007 ~~~~"~`-~"~` Afaska Qil &Gas Cons. Comrrussio ~b y7 ~.b ~ ~ Form 10-407 Revised 12/2003 CONTINUED ON REVERSE ~~;~ ~~Y~~7 28. GEOLOGIC MARKER 29. ORMATION TESTS NAME MD TVD Include and brieFly summarize test results. List intervals tested, and attach Base Permafrost 1,951' 1,729' detailed supporting data as necessary. If no tests were conducted, state Ugnu 4,252' 2,775' "None". L. Ugnu 5,046' 3,112' Upon reaching TD, a 3 1/2" slotted liner was successfully run to TD. The Schrader Bluff 9 7/8" Int. Borehole 5,663' 3,353' well was then pumped with a downhole pump and cleaned up quickly. Schrader Bluff N Sand (Int. Boreh) r°B ~ 5,903' 3,440' Schrader Bluff OA Sand (Int. Boreh) / D7 6,609' ) 3,571' "OA" 24 Hour Test on ESP, FTP 142 on 128/64th chk, 2034 bopd, 0 bwpd, OA Sand-Lateral ~ 8532' 3,577' 145 mcfd, gor 72, API 19.2, gg = .593, .05% C02, o ppg H2S OA Sand-Lateral 8728' 3,583' Base OA Sand-Lateral 10,655' 3,616' Base OA Sand-Lateral 10,865' 3,616' TD-OA Sand-Lateral 12,711' 3,599' / 30. List of Attachments: 31. I hereby certify that the foregoing is true and correct to the best of my knowledge. Contact: 2 Printed Name: JuC~, r r ~~ M1 ~~,/~,~ Title: ~ ~S~ u.~q n S NI ~r.k Signature: (,.-' Phone: 07-3~~-~~~5 Date: 3>Z~,©7 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 1a: Classification of Service wells: Gas Injection, Water Injection, Water-Alternating-Gas Injection, Salt Water Disposal, Water Supply for Injection, Observation, or Other. Multiple completion is defined as a well producing from more than one pool with production from each pool completely segregated. Each segregated pool is a completion. Item 4b: TPI (Top of Producing Interval). Item 8: The Kelly Bushing elevation in feet above mean low low water. Use same as reference for depth measurements given in other spaces on this form and in any attachments. Item 13: The API number reported to AOGCC must be 14 digits (ex: 50-029-20123-00-00). Item 20: True vertical thickness. Item 22: Attached supplemental records for this well should show the details of any multiple stage cementing and the location of the cementing tool. Item 23: If this well is completed for separate production from more than one interval (multiple completion), so state in item 1, and in-item 23 show the producing intervals for only the interval reported in item 26. (Submit a separate form for each additional interval to be separately produced, showing the data pertinent to such interval). Item 26: Method of Operation: Flowing, Gas Lift, Rod Pump, Hydraulic Pump, Submersible, Water Injection, Gas Injection, Shut-in, or Other (explain). Item 27: If no cores taken, indicate "none". Item 29: List all test information. If none, state "None". Form 10-407 Revised 12/2003 ~ ~ WELLHEAD DATA _ ITYE 4"IIIUVelCO HOnZ. WP 5,000 T FLANGE R A .. _ E P THREAD: 9112 Otis E _. - ___. __.__ TUBING HANGER: Vetco Mandrel Hngr. BTM FLANGE: 4 1/2"IBT BPV PROFILE: "H" ELEVATIONS: PAD ELEV. 12 _____ RKB-THF: OTHER: GL-RKB: RIG RKB: 53 ~jn~ OPERATOR: KERR McGEE OIL & GAS CORPORATION FIELD/WELL: OPI-2 (Schrader Bluff Horizontal) WELL SKETCH: Final Completion \\ DRILLING RIG: (RKB: 53') COMPLETION RIG: LEASE: API NUMBER: Nabors 245E Nabors 245E Sec 5, T13N R9E 50-029-23326-00 DIRECTIONAL DATA ____ _ ~- _ TUBUL AR DATA rtuY- vErc11vAL tleg (av2 you KKl3 iubulura PD ID N'.:lyht Grade 1 Tl,cneJ TVD MAX DEV: 90.00 deg @ 7,000 RKB DLEG SEV: deg @ RKB DEV @ PERFS: 90.00 deg @ 7,000 RKB RET to VERT: deg @ RKB DRIVE PIPE __.... - CONDUCTOR SURFACE INTERMEDIATE 16 000 15.250 65.00 ... {_...._. I __ 10 750 9.950 45.50 L-80 i L-80 PE BTC 115 115 __. I 2,024 2,563 ns DRILLING /COMPLETION FLUID PRODUCTION PROD LINER (aloha 7 625 ~, 6.875 29.70 3 soo 2ss2 s.3o I L-80 ~-ao BTC Ier 3,578 I 6,696 5,000 3sss 11z,7oo wA DRILLING FLUID: 9.30 ppg SBM PROD LINER I DRILLING FLUID: PROD TIEBACK ! , ~ ~,, COMPLETION FLUID: 8.85 ppg 3%KCI TUBING _ 3500 i 2.992 ~ 9.30 J L-80 . _.-_ - IBT 3,561 I 6,485 __ COMPLETION FLUID: 9.30 ppg SBM - TUBING _.,,~- I -- _ _ _ PACKER FLUID: ppg TUL,rv., I I i WELLEORE SKETL'H EQUIPMENT DESCRIPTION ID OD DEPTH DEPTH ..................................................................................... __. - TOP OF TUBING HANGER WITH BIW PENETRATOR & PACKOFF _ _.. 16" 65# L-80 DRIVE PIPE 15.250 16.000 ii5 115 KICK OFF POINT @ 300' 300 300 .. .a ~:: CANNON CABLE CLAMPS 1 ACROSS EACH JOINT 5.030 rt::; r; r:. _ ... 3 1/2", 9.3#, L-80, IBT TUBING 2.992 3.500 o~;a .o .r. _ __ __.----- - 10 3l4" 45.50# L-8, BTC-MOD, R-2 ERW CASING - _..- 9.950 --- 10.750 2,024 ~ 2,563 - •.~ TOC @ 5,000' 3,095 5,000 g ~ NIPPLE (2 813" Profle) 3 1/2" HALLIBURTON X 2.813 4 260 3,550 6,358 1] 1] . _. ' 1 1 ~i _ - _- 3 1/2" HALLIBURTON "XN" NIPPLE (2.813" x 2 75 No-Go) --- 2.750 _ 4.260 3,554 6,403 ;; CENTRILIFT ESP ASSEMBLY WITH #1 SS CEBER ROUND CABLE SET IN 85 degree TANGENT SECTION OF HOLE FROM 6400 - 6650' MD 5.130 3,561 - _ 6,485 .r. ~° _ _ _ _ 7 5/8" x 3 1/2" MW HYDRO HANGER WITH LX HYDRO PACKER 7 5/8", 29.7#, L-80, BTC-MOD, R-3, ERW CMT'D WITH 438 SX 4.151 6.875 6.750 7.625 __ 3,570 3,578 - _ _..-- 6,590 6,696 „;„ I - - -- -- -___- - __ _. _ _. _... TO - 2,800 IN 9 7/8" HOLE ___._-- -.. _ -__.-- -__ ,r.° ---------- '. _--_-_--~- " _-_-_- _ _ _-_ "c'. I I 1 --- - -.___- -. __... _..__.-_--- - -__._. ___ Schrader Bluff OA Sand 3579 - 3599' TVD _._ _ _ ~ SCHRADER BLUFF HORIZONTAL SECTION (EST. BHP: 1556 psi EST BHT: 80 Degrees F) 3.5", 9.2#, L 80, IBT/MOD, SLOTTED LINER (3/16" x 2" x 8 slots/ft) (6 1/2" HOLE) 2.867 3.500 3,599 12,700 COMMENTS: KDP 300', BDILD RATE as degrees / 1oa PLUG BACK TOTAL WEL DEPTH: L DEPTH: 3,599 ' 12,711 DRAWING NOT TO SCALE PREPARED DR BY: M DATE: 02/05/07 Schrader Bluff (OPI-2) As Run Complelion.xls Surf Pad Elev = 12 ft GL to RKB = 41 ft KOP = 300' ~~"~` ~:=,1 Rig RKB = 53 ft BUR < 6°/100' ~~'~ ~x'°°t - ~: °::1 I'~,a °>I ~:;- ~':° ,I ~%: ~,I ~~ ~1 13" Hole (~ °.°I f°:° ==1 ~~` o:l r~ .~.oe~ I 3-1/2", 9.3#, L-80, IBT eol !. °~1 ~~ I ~~~y 10-3/4", 45.5#, L-80, BTC-M I 2563' MD / 2024' TVD I 1 Tubing Deployed ESP In Tangent section (6,400' - 6,650') at 85° I t I I I I t`,a~: F` 1 ESP Running Order (top -down): • Landing joint • 4-1/2" Tubing Hanger w/ CL Port & Penetrator • 4-1/2" x 3-1/2" Cross Over Pup Joint • 200 Jts of 3-1/2" IBT Tubing • 3-1/2" IBT Pup Joint • Halliburton 3-1/2" X Nipple @ 6358' • 3-1/2" IBT Pup Joint • 1 joint of 3-1/2" IBT Tubing • 3-1/2" IBT Pup Joint • Halliburton 3-1/2" XN Nipple @ 6403' • 3-1/2" IBT Pup Joint • 2 jts of 3-1/2" IBT Tubing • Centrilift's ESP assembly: Top at 6485' MD • Centrilift's Pump Mate Gauge with Centralizer: Bottom at 6543' MD 7 5/8" Baker Liner Hanger & Packer Assembly Top @ 6,590' MD and 3'h" Blank Pipe to 6,710' MD ______________________ 3-1/2",9.3#,L-80,EUE Slotted LinerF=..=-_____-_- I - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - I Pilot Hole, 7-5/8", 29.7#, L-80, BTC-Mod 6,715' MD / 3,699' TVD 6,696 MD / 3,578 TVD 6-1/2" Hole, OBM 12,711' MD / 3,599' TVD DRM 2/05/07 a • US ALASKA Operation Summary Report Well: OLIKTOK POINT I - 2 / Project: NORTH SLOPE (Site: OLIKTOK POINT Event: DRILLING Start Date: 12/31/2006 End Date: Active Datum: KB @52.Oft (KELLY BUSHING - UWI: OLIKTOK POINT I - 2 -NABORS 245-E) Uate f irne Dur~iiun Pha ~ Gode Jubco Time t:1D f rom Start-End ihrj dt2 Core ift) 11/28/2UU6 u:uu - U:UU 24.00 MIRU 01 P 1/1/2007 8:00 - 0:00 16.00 MIRU 01 P 1 /2/2007 0:00 - 0:00 24.00 MIRU 01 P 1/3/2007 0:00 - 12:00 12.00 MIRU 01 P 12:00 - 0:00 12.00 MIRU 01 P 1/4!2007 0:00 - 18:00- 18.00 MIRU 08 A U 18:00 - 22:00 4.00 MIRU 19 A T 22100 - 23:00 '`1.00 MIRU 04 A P 23:00 - 0:00 1.00 MIRU 19 A T 1/5/2007 0:00 - 1:00 1.00 DRLSUR 19 T 1:00 - 3:00 2.00 DRLSUR 06 D P 3:00 - 4:00 1.00 DRLSUR 90 D P 4:00 - 6:30 2.50 DRLSUR 08 A T 0 0 0 0 0 0 115 115 0 0 40 40 Rig Name No: NABORS 245-E/245-E Spud Date: 1/4/2007 Op<r;ifion U8-U1-LU06 Began returbishing and preparation for move of rig to Oliktok Point pad for OPI-1. 10-26-2006 Began move off 1J pad location to OPI-1 drill pad. 11-06-2006 Arrived on location at Oliktok Point in prepration to drill OPI-1. Release rig from OPI-1 @ 0800 12/31/06. Rig maintanence and preparation for move to OPI-2. Raised cellar box and cleaned cellar. Dropped hammer head down conductor on OPI-2. No accidents, no reported spills R/D. M/U diverter spool and Hydrill. Move to OPI-2 and spot. Had to re-cut cellar box, would not fit over OPI-1 tree. Set cellar box down. Moved and set ballmill. Continue R/U OPI-2. R/U Water systems/boilers, Continue R/U and battle against freezing temperatures and resultant frozen pipes, hoses and equipment. See remarks for details. Weld cement return fittings on conductor pipe. R/U diverter. Extreme cold temperatures have hampered progress. Multiple frozen pipes/hoses. Repair frozen centrifuge, readjust & NU diverter line. Thawing and repairing frozen pipes and hoses. Recovering from and dealing with extreme cold. Change out boots on flowline. Make repairs to shakers & rebuild centrifuge. Function test diverter & Koomey system test. MU 11 1/2" fishing magnet & Make several attempts to recover lost #16 hammer. Recovered piece of conductor pipe (cut out from valve installations ). Still not able to use mud pumps. Thaw out charge pumps & lines & blow down mud pumps. Thaw out top drive IBOP valve & blow out ice blockage Break circulation slowly & check rig for leaks Wash & rotate down to 115' & work magnet. POOH. Recovered hammer head. No accidents or pollution reported Accepted Rig @ 0001 hrs Recover Hammer head on fishing magnate & LD fishing tools Hold prejob safety mtg & PU 13 1/2" Bit (HTC MX 1 ), 8" motor. Change bend to 1.83 deg. Orient tool & PU 12" IBS & UBHO sub. RU Sperry Gyro sheave in derrick MU stand 5" HWDP & attempt to function top drive. Rack back stand & repair top drive. MU stand & attempt to circulate. Work on priming pumps & thawing out rod cooling systems. 2/22/2007 10:03:09AM 1 # • l_IS ALASKA Operation Summary Report Well: OLIKTOK POINT 1- 2 Project: NORTH SLOPE f Site OLIKTOK POINT Event: DRILLING Start Date: 12/31/2006 End Date: Active Datum: KB @52.Oft (KELLY BUSHING UWI: OLIKTOK 1 POINT I - 2 -NABORS 245-E) Late Ii~~~e Duration Pharr Code Subco Time P.1D from Start-En~.1 (hr) del Code l~l~ b:sti - 11:00 4.50 DRLSUR 02 A P 115 11:00 - 12:30 1.50 DRLSUR 06 D P 218 12:30 - 15:00 2.50 DRLSUR 06 D P 90 15:00 - 17:00 2.00 DRLSUR 06 D P 90 17:00 - 18:30 1.50 DRLSUR 06 D P 90 18:30 - 19:00 0.50 DRLSUR 10 D P 200 19:00 - 23:30 4.50 DRLSUR 02 B P 218 23:30 - 0:00 0.50 DRLSUR 10 B P 1/6/2007 0:00 - 0:30 0.50 DRLSUR 10 P 0:30 - 0:00 23.50 DRLSUR 02 A P 395 395 1/7/2007 0:00 - 4:30 4.50 DRLSUR 02 A P 2003 4:30 - 5:30 1.00 DRLSUR 05 A P 2419 5:30 - 6:30 1.00 DRLSUR 02 A P 2419 6:30 - 8:00 8:00 - 9:00 1.50 DRLSUR O5 A P 2580 1.00 DRLSUR 08 A T 2580 Rig Name No: NABORS 245-E/245-E - __ Spud Date: 1/4/2007 ~Jperalion "Spud well @ 0630 hrs " Drilling 13 1 /2" hole w/ Sperry Gyro surveys f/ 115' to 218' Blow down top drive & pull back to HBHO sub & LD same PU Sperry MWD tools (HIVREG) . FS, & UBHO sub Download to MWD tool PU 3 flex NM Collars & Jars Run Sperry Gyro Survey & Orient toolface Drilling & Sliding 13 1/2" hole f/ 218' to 395' MD WOB 10 k 465 gpm 1200 psi 147 rpm on motor Last survey @ 326' 3.81 deg 311.06 Az Pres mud wt 9.4 ppg Rotating hrs 1.96 Sliding hrs. 3.15 Attempting to get MWD survey (a~ report time No accidents or pollution reported Unable to get MWD survey. Rack back stand & take Sperry Gyro survey. Drilling !Sliding 13 1/2"' hole f/ 395' to 2003' MD 1765' TVD 1608' New hole made in 23.5 hrs. Avg 68.4' hr WOB 20 - 25 K SPP 1700 GPM 482 ROP 120 80 RPM + 127 RPM Motor Mud wt 10 ppg Daily slide hrs 12.38 Daily Rot hrs 3.47 Last survey @ 1900.47 44.5 deg 299.51 Az No accidents 1 Spill reported Drilling /Sliding 13 1/2" hole f/ 2003' to 2419' Circ for sample & correlate log w/ geologist to determine Becton TD Drilling Sliding 13 1/2" hole f/ 2419' to 2580' TD MD / 2031' TVD 577' New hole made in 5 1/2 hrs Avg ROP 105' hr WOB 20 K SPP 1700 GPM 482 ROP 120 80 RPM + 127 RPM Motor PU wt 150 SO wt 120 Rot wt 135 Mud wt 9.8 ppg Daily slide hrs 1.8 Daily Rot hrs 2.2 Last survey @ 2510.28' 64.51 deg 303.72 Az Circulate Bole clean 3 X CBU 100 RPh1 585 GPM 2100 PSI Attempt POH. Backed out saver sub, L/D 2 jts, worked on top drive saver sub. 2/22/2007 10:03:09AM 2 US ALASKA Operation Summary Report Well: OLIkTuk FuINT I - 2 Project NOhtTH bLOPE Site. OL IKTOK POINT ~ Rig Name No: NABORS 245 E/245-E Event DRILLING Start Da te: 12/31/2006 ~ End Date: Spud Date. 1/4/2007 Active Datum: K6 @52 .Oft (KELLY BUSHING ~ UWI: OLIKTOK POINT I - 2 -NABORS 245-E) Date Tune Duration Ph~~c Cna e Subeo Time MD From Operation S Ca rt-~11~1 I,ilrJ fae'~ (_p~:~i' Ilil y:UU - 14:00 5.00 URLaUR Or; B P 2520 Wiper tnp f/ 2520' to 1120' Hole in good condition. Trip back to bottom. No fill 14:00 - 16:00 2.00 DRLSUR 05 A P 2580 Circ. hole clean. 3 X BU 100 RPM 585 GPM 2100 PSI 16:00 - 19:30 3.50 DRLSUR 06 H P 2580 POOH to MWD tools 19:30 - 20:30 1.00 DRLSUR 06 H P 150 Down load memory f/MWD 20:30 - 21:30 1.00 DRLSUR 06 H P 150 LD 8" Sperry MWD tools. Motor & bit. Bit - As new condition 21:30 - 0:00 2.50 CSGSUR 12 B P 0 RU 10 3!4" csg tools No accidents or pollution reported 1/8/2007 0:00 - 2:30 2.50 CSGSUR 12 B P 0 Continue RU 10 3/4" csg tools 2:30 - 8:30 6.00 CSGSUR 12 A P 0 Run 62 JTS (2525.15') 10 3/4" # 45.5, L-80 csg w/ BTC Land csg. Shoe @ 2563' MD. / 2022' TVD Top F.C. 2478' 8:30 - 11:30 3.00 CSGSUR 12 B P 0 R/D csg tools. R/U Howco tools. CBU 11:30 - 12:00 0.50 CSGSUR 12 C P 0 PJSM for cement job. Pump 5 bbls water, test lines to 3000 psi. OK. 12:00 - 12:30 0.50 CSGSUR 12 C P 0 Drop bottom plug. Pump 50 bbls Alpha Spacer@ 10 pP9 12:30 - 13:30 1.00 CSGSUR 12 C P 0 Mix and pump 336 bbls (457 sx) type L Permafrost cement at 7 bpm, 400 psi. 10.7 ppg. 20.3 gal/sk, 4.15 cu. fUsk. 13:30 - 14:00 0.50 CSGSUR 12 C P 0 Mix and pump 47 bbls (228 sx) Premium cement al 4 bpm, 575 psi. Drop top plug. Pump 10 bbls water. 14:00 - 14:30 0.50 CSGSUR 12 C P 0 Displace w/rig pump at 8 bpm, 460 psi. Bump plug w/'1500 psi, at 2250 stks. Cal disp was 2301 stks. C.I.P. @ 1430. Approx 100 bbls cmt returns to surface. 14:30 - 18:00 3.50 CSGSUR 12 C P 0 R/D Howco. Back out landing joint and L/D same. 18:00 - 0:00 6.00 CSGSUR 14 P 0 Nipple down Flowline, Knfe v/v"s &Diverter lines & diverter No accidents or pollution reported 1/9/2007 0:00 - 1 00 1.00 CSGSUR 14 P 0 Finish nippling down Diverter 1:00 - 4:00 3.00 CSGSUR 14 P 0 Install Vetco MB 243 Wellhead & test to 5000 psi 4:00 - 22:00 18.00 CSGSUR 14 P 0 Nipple up 3 spools. Nipple back down to wrong alignment of choke & kill valves. Turn spools 1 hole & begin nippling up again. Nipple up BOP's ' 22:00- - 0:00 2.00 CSGSUR 14 P MU Vetco test plug & JT & MU TIW & Grey valve. Fill BOP & stack w/ water. Retighten down bell nipple bolts. No accidents no pol~ition reported. 1/10/2007 0:00 - 1:00 1.00 CSGSUR 14 P Attempt to test BOP's. Leak on choke line. Retighten bolts & Shell test BOP 2/22/2007 10:03:09AM 3 s US ALASKA Operation Summary Report Well: OLIKTOK POINT I - 2 Project NORTH SLOPE iSite: OLIKTOK POINT Rig Name No: NABORS 245-E/245 E Event: DRILLING ;Start Date: 12/31/2006 j End Date: !Spud Date: 1/4/2007 Active Datum: KB 52 @ .Oft KELLY BUSHING ( ~ UWI: OLIKTOK POINTI-2 -- -NABORS 245-E) Date Time Duration Phase Code Sub~:o Tune f~41) Erom Operation Sta rt-End iiir) dc'~ Code (Ri 1:00 - 8:00 7.00 GJCsUR 1b P 0 Test BOP's r=r Griller Panel "' John Crisp , AOGCC, notified 1/8/07 @ 1930 hrs & gave permission to test BOP's. without AOGCC agent present. All tests charted. Tested 5" pipe rams, VBR rams, blind rams & Annular to 250 / 3000 psi for 5/5 min Tested 16 v/v's on choke manifold, Manual choke & kill & HCR v/v's to 250 / 3000 psi for 5 / 5 min. Tested 5" TIW, 5" Grey v/v,Upper & Lower top drive IBOP's to 250 / 3000 psi for 5 / 5 min 8:00 - 9:00 1.00 OTHER 15 D P 0 Pull Vetco test plug & set wear bushing 9:00 - 12:00 3.00 OTHER 06 D P 0 RU bails & elevators, Blow down Top Drive & Choke manifold & pull out strip o matic. LD 8" BHA 12:00 - 16:00 4.00 OTHER 06 D P 0 Hold PJSM. PU 9 7/8" Bit (MXL-IV ). Sperry Motor w/ 1.5 deg bend, 9 1/2 "IBS, Sperry Sun MWD fools. Distances f/ bit : GR 48' RES 56' PWD 64' DEN 83' ACAL 93' NEUT 97' Sonic 122' 16:00 - 19:00 3.00 OTHER 06 D P 150 Download to MWD. Hold PJSM & load Nukes 19:00 - 21:00 2.00 OTHER 06 D P 150 Continue TIH w/ NM Flex DC's, 3 HWDP, Jars, 26 HWDP, 9 7/8" Ghost reamer @ 1137' 21:00 - 21:30 0.50 OTHER 08 A T 1140 Unable to operate top drive. Repair Glycol pump 21:30 - 22:00 0.50 OTHER 05 A P 1140 Shallow test MWD. Blow down top drive 22:00 - 23:30 1.50 OTHER 06 D P 1140 Continue TIH, Picking up 36 Jts 5" DP 23:30 - 0:00 0.50 OTHER 15 P 2300 RU & test csg to 2500 psi for 30 min No accidents or pollution reported 1/11/2007 0:00 - 1:30 1.50 DRLINI 14 P 2300 Test 10 3/4" csg to 2500 psi for 30 min 1:30 - 3:30 2.00 DRLIN1 09 P 2300 Slip & cut 100' drill line 3:30 - 4:30 1.00 DRLINI 07 P 2300 Service top drive. blocks. service & reset COM 4:30 - 6:00 1.50 DRLIN1 25 P 2300 Tag Plugs on top PC @ 2475'. Drill out FC, & firm cmt in shoe track. Drill shoe @ 2563' & clean out. rathole to 2580' 6:00 - 6:30 0.50 DRUN1 02 A P 2580 Drill 15' new 9 7/8" hole f/ 2580' to 2595' 6:30 - 7:30 1.00 DRLIN1 05 A P 2595 Circulate & even mud wt to 9.5 ppg for LOT 7:30 - 8:00 0.50 DRLIN1 05 A P 2575 Perform LOT@ 10 3/4" shoe Max press. 550 psi EMW = 15 ppg at TVD 2022' w/ 9.5 ppg mud 2.5 bbls pumped w/ rig pump 8:00 - 10:00 2.00 DRLIN1 02 A P - 2575 Drill 9 7/8" hole f/ 2750' 10:00 - 11:00 1.00 DRLIN1 08 A T 2747 Repair standpipe bleed off valve. 11:00 - 0:00 13.00 DRLIN1 02 A P 2747 Drilling 9 7/8" hole f/ 2750' to 3694 ' MD / 2524' TVD 1114' New hole made in 15-5 hrs Avg 72' hr WOB 7 - 15 K TO 2500 SPP 2000 GPM 550 Inst. ROP 160 80 RPM + 130 RPM Motor PU wt 175 50 wt 125 Rot wt 125 Mud wt 9 4 ppg Avg BG 24 units Daily slide hrs 2.8 Daily Rot hrs 7.2 Last survey @ 3654.05' 64.08 deg 305.05 Az No accidents or pollution reported 2/22/2007 10:03:09AM 4 • US ALASKA Operation Summary Report Well: OLIKTOK POINT I - 2 Project: NORTH SLOPE Site: OLIKTOK POINT -- - Event: DRILLING - -- 'Start Date: 12/31/2006 ~ - End Date: Active Datum: KB @52.Oft (KELLY BUSHING ----- -------- - UWI: OLIKTOK POINT I - 2 -NABORS 245-E) Ih~te ~in:e Duration Phase Cade Sukur Time MD From Slam-End llir) deb Code j (ftj i/ iL/CUU/ U.vU p:UU 6.UU DRLIIVI UL H P 3bb4 Rig Name No: NABORS 245-E/245-E -- --- ~I Spud Date: 1/4/2007 ~?pec+lion Drilling 9 r'i8" hole fr 3ri94' l0 4 125' IviD. 431' New hole made in 6 hrs Avg ROP 72.5' hr WOB 8 -12 K TO 2500 SPP 2300 GPM 550 Inst. ROP 160 80 RPM + 130 RPM Motor PU wt 190 SO wt 120 Rot wt 140 Mud wt 9.6 ppg Avg ECD 10.06 ppg Avg BG 10 units Daily slide hrs 2.75 Daily Rot hrs 19.6 6:00 - 0:00 18.00 DRLIN1 02 A P 1/13!2007 0:00 - 14:00 14:00 - 14:30 14:30 - 20:30 14.00 DRLIN1 02 A P 0.50 DRLIN1 07 P 6.00 DRLIN1 02 A P 5435 20:30 - 23:30 3.00 DRLIN1 05 A P 23:30 - 0:00 0.50 DRLIN1 06 H P 1/14/2007 0:00 - 6:00 6.00 DRLIN1 06 H P 6315 6:00 -'10:00 4.00 DRLIN1 06 H P 150 10:00 - 12:00 2.00 DRLIN1 06 H P 150 12:00 - 15:30 15:30 - 16:00 3.50 DRLIN1 06 D P 0 0.50 DRLIN1 07 P 930 No accidents or pollution reported Drilling 9 7/8" hole f/ 4125 to 5435' MD / 3222' TVD. Avg ROP 72.5' hr WOB 8 -12 K TO 2500 SPP 2300 GPM 550 Inst. ROP 160 80 RPM + 130 RPM Motor PU wt 190 SO wt 120 Rot wt 140 Mud wt 9.6 ppg Avg ECD 10.06 ppg Avg BG 10 units Daily slide hrs 2.75 Daily Rot hrs 19.6 Last survey @ 5398.03' 67.45 deg 302.59 Az No accidents or pollution reported Drilling 9 7/8" hole f/ 5435' to 5590' Service Top Drive Drilling 9 7/8" hole f/ 5590' to 6715' MD / 3699' TVD 1280' new hole made in 20 hrs Avg Rop 64' hr WOB 8 -12 K TO 2500 SPP 2750 GPM 600 Inst. ROP 150 80 RPM + 180 RPM Motor PU wt 220 SO wt 115 Rot wt 150 Mud wt 9.8 ppg Avg ECD 10.4 ppg Daily slide hrs .75 Total section 6.05 Hrs Daily Rot hrs 13.5 Total section 33.03 Hrs Avg BG 30 units Max BG 921 units Last survey @ 6674.35' 65.65 deg 306-36 Az CBU x 3 800 GPM, 100 RPM POOH f/ 6715' to 6315' and pump slug. No accidents or pollution reported POOH to MWD tools. Max o'pull 70 K @ 6000' Rest of hole in good condition Hold PJSM. Pull Nukes & download MWD memory Rack back MWD tools & LD motor, Stab & Blt. 7 - 7 - WT-E-3/16out. Clear & clean rig floor RU & PU mule shoe & 30 Jts 2 7/8" cmt stinger total 930') RD tbg tongs Service top drive & rig 2/22/2007 10:03:09AM 5 • ~ Well: OLIKTOK POINT I - 2 Pro~ect: NORTH SLOPE 1 US ALASKA Operation Summary Report Site OLIKTOK POINT _ ' ~ Ri Name No: NABORS 245 E/245-E 9 ii ~ Event: DRILLING ---_ _ _ Start Date: 1 2/3 112 0 0 6 I End Date: _ ~' Spud Date: 1/4/2007 _ _ ', _ I Active Datum: KB @52.Oft (KELLY BUSHING UWI: OLIKTOK POINT I - 2 '~ ! -NABORS 245-E) I Date Tinh Cur,3tlon I'lla_~,e Code Subro Tilna P:1D From "peration S[ar(-En~J ihrj r1~2 (;ode Illi lU:vv GU:3U 4.5U UFKLIN I U6 U F' y3U DICa1C (;Ir(; eVCry Lll ~ontlnue I IH 5~~ Up to b/ 15~. stands 20:30 - 21:30 1.00 DRLIN1 05 A P 6715 Circ BU. Mud wt 9.8 ppg 12 BPM 1600 psi I Hold Cementing PJSM 21:30 - 22:30 1.00 DRLIN1 17 P 6715 Set Cement plug # 1 6715' to 5815' (900') ' Test lines to 2500 psi. Pump 20 bbls water ' Mix & pump 94.1 bbl slurry @ 15.8 ppg (460 sx ) class G premium cmt + .5 % Halad 344 + .2% CFR-3 + .1 % HR-5. Yield 1.15 tuft / sk Displace to balance w/ 5 bbls water + g6 Bbls mud 22:30 - 23:30 1':00 DRLIN1 06 A P 6715 POOH to 5815' "" While cleaning up Halliburton Pump truck, wiring shorted out rendering truck out of service. Halliburton sending another truck. 23:30 - 0:00 0.50 DRLIN1 05 A P 5815 Drop nerf ball &circ BU 12 BPM 1500 psi Aprox 5 bbls cement seen at shakers. 1 First aid reported. No pollution repoorted 1/15/2007 0:00 - 4:00 4.00 DRLIN1 24 C T Continue to circ @ 5815' while waiting on replacement Halliburton pump truck. Hold PJSM 4:00 - 5:30 1.50 DRLINI 17 P Set Cement plug # 2 4915' to 5815' (900' ) Test lines to 2500 psi. Pump 20 bbls water Mix & pump 94.1 bbl slurry @ 15.8 ppg (460 sx ) class G premium cmt + .5 % Halad 344 + .2%CFR-3 + .1% HR-5. Yield 1.15 tuft / sk Pump @ 5 1/2 BPM @ 1250 psi Displace to balance w/ 5 bbls water + 80 Bbls mud @ 10 BPM 5:30 - 6:30 1.00 DRLINI 06 P Pull back 10 stands to 4915' 6:30 - 7:30 1.00 DRLIN1 05 A P Circ. BU 2 bbls cmt seen @ surface 7:30 - 8:30 1.00 DRLIN1 17 P Set Kickoff plug 4296' to 4915' (619' ) Test lines to 2500 psi. Pump 20 bbls water Mix & pump 72.7 bbl slurry @ 17 ppg (409 sx) class G premium cmt + .5 % Halad 344 + .75%CFR-3 + ' 1 % HR-5. Yield 1.00 tuft / sk Displace to balance w/ 5 bbls water + 66 Bbls mud 8:30 - 10:00 1.50 DRLIN1 05 A P POOH to 4000' &Circ BU 5 Bbls cmt Seen @ surface 10:A0 - 12:00 2.00 DRLIN1 06 D P Pump slug, POOH 12:00 - 16:00 4.00 DRLIN1 06 D P RU tbg tongs & LD 2 7/8" cmt stinger. RD Tbg tools & clean rig floor 16:00 - 17:00 1.00 DRLIN1- 15 P Pull Vetco wear bushing & RU to test BOP 17:00 - 21:30 4.50 DRLIN1 15 P Test BOP "' John Crisp , AOGCC, notified 1/14/07 @ 1400 hrs & gave permission to test BOP's. without AOGCC agent present. All tests charted. Tested 5" pipe rams, VBR rams, blind rams & Annular to 250 / 3000 psi for 5/5 min Tested 15 v/v's on choke manifold, Manual choke & kill & HCR v/v's to 250 / 3000 psi for 5 / 5 min. Tested 5" TIW, 5" Grey v/v 250 / 3000 psi for 5 / 5 min Tesedt all Visual & audio alarms OK Valve # 16 (gauge isolation v/v) on choke manifold failed to test. No spares @ rig 21:30 - 23:30 2.00 DRLINI 15 P Attempt to test upper & lower IBOP's on top drive without success. 2/22/2007 10:03:09AM 6 • US ALASKA Operation Summary Report Well: OLIKTOK POINT I - 2 Project: NORTH SLOPE Event: DRILLING Active Datum: KB @52.Oft (KELLY BUSHING -NABORS 245-E) Uate Tirnz: C.ur<3tiori ~t~rt-Cnd !hrj L.~:~U - U.VU U.SU 1/16/2007 0:00 - 3:00 3.00 Site: OLIKTOK POINT Rig Name No: NABORS 245-E/245-E Spud Date: 1/4/2007 Start Date: 12/31/2006 'End Date: 'i UWI: OLIKTOK POINT I - 2 ~ha ,e Coda. tiuhco Time P~.1D From d.,? Code i l l ~RLiivi i5 P iRLIN1 15 P 0 3'00 - 4:00 1.00 DRLIN1 15 P 0 4:00 - 12:00 8.00 DRLIN1 08 A T 0 12:00 - 14:00 2.00 DRLIN1 06 A P 0 14:00 - 18:00 4.00 DRLIN1 06 A P 150 18:00 - 20:00 2.00 DRLIN1 06 A P 150 20:00 - 22:30 2.50 DRLIN1 06 A P 684 22:30 - 0:00 1.50 DRLINI 03 A P 1/17/2007 0:00 - 1:30 1.50 DRLIN1 03 P 4180 1:30 - 5:00 3.50 DRLINI 02 A P 4279 5:00 - 5 30 0.50 DRLINI 05 A P 4579 5:30 - 7:30 2.00 DRLIN1 08 A T 4579 7:30 - 0:00 16.50 DRLIN1 02 A P 4579 t->per,~tion set vetco 'vvear bushing. vvhiie checking on replacement IBOP's Start of OPI 2 ST 01 Finish testing BOP'S Test Upper & Lower IBOP's on top drive to 250 / 3000 psi for 5 /5 min RD Test equip & blow down top drive & choke manifold Rebuilding 2-1/16 10K gauge isolation valve #16 Break out saver sub & Repair gripper die assy on top drive. Pull Vetco WB & Reset Test plug Retest valve # 16 on choke manifold to 250 / 3000 psi for 5 min Pull Test Plug & reset Vetco WB PU Bit (HTC EP5848 ), Sperry motor w/ 1.5 deg bend, Stab &MWD tools Hold PJSM & program MWD tools & Load nukes Continue running BHA. 3 NM flex DC's, 3 x 5" HWDP. Jars. 11 HWDP, 9 7/8" Ghosl reamer @ 684' Shallow test MWD DIR@40' GR@48' RES@56' PWD@64' DEN @ 83' ACAL @ 93' NEU @ 97' Sonic @ 122' Continue TIH f/ 684' to 3600' Few intermittent cmt stringers f/ 3300' Wash down f/ 3600' to 4100' thru cmt stringers & drilling on firm cmt fl 4100' to 4180' 0 - 15 WOB 550 GPM 2200 psi 60 RPM rotary + 158 RPM on Motor Mud wt 9.5 ppg No accidents or pollution reported Drilling Firm cement f/ 4180' to 4279' Survey taken @ 4229' showed hole start to kickoff on lowside Start Sliding to Kickoff f/ old well @ 4279' Drilling /sliding 9 718" hole f/ 4279' to 4579' MD. Circ BU Pull back 1 std. Repair Grabber on top drive & modify guide bowl to fit. Drilling /sliding 9 7/8" hole f/ 4579' to 5800' MD / 3407' TVD 1521' New hole in 20 Hrs Avg ROP 76' hr WOB 7 - 15 K TO 8500 SPP 2400 GPM 550 Inst. ROP 170 80 RPM + 130 RPM Motor PU wt 205 SO wt 110 Rot wt 140 Mud wt 9.6 ppg Avg ECD 9.9 ppg Avg BG 21 units Max BG 91 units Daily slide hrs 2.55 Daily Rot hrs 823 Last survey @ 5749.24' 66.91 deg 305.67 Az No accidents or pollution reported 2/22/2007 10:03:09AM 7 ~ ~ lJS ALASKA Operation Summary Report Well: OLIKTOK POINT I - 2 Project: NORTH SLOPE Site: OLIKTOK POINT Rig Name No: NABORS 245-E/245-E Event: DRILLING iStart Date: 12/31/2006 'End Date: ', Spud Date: 1/4/2007 Active Datum: KB @52.Oft (KELLY BUSHING UWI: OLIKTOK POINT I - 2 -NABORS 245-E) Late Time Duri[inn Ph~i_,c Cod~~ Suhco Tiirc P:1D Frorn Start-Fnd ihrj del Coda (111 1/18/2007 O.uu - 17:00 17A0 DRLINI Oz A F 5800 17:00 - 18:00 1.00 DRLIN1' 05 A 18:00 - 20:30 2.50 DRLIN1 06 B 20:30 - 0:00 3.50 DRLIN1 08 A P 6709 P T 1/19/2007 0:00 - 2:00 2.00 DRLIN1 08 A T 2:00 - 5:30 3.50 DRLIN1 06 A P 5:30 - 6:00 0.50 DRLIN1 02 A P 6:00 - 8:p0 2.00 DRLIN1 05 A P 8:00 - 12:00 4.00 DRLIN1 06 H P 12:00 - 15:30 3.50 DRLIN1 06 H P 15:30 - 18:30 3.00 DRLINI 06 H P 18:30 - 20:00 1.50 DP.LIN1 06 H P 20:00 - 0:00 4.00 DRLIN1 12 H P 1/20/2007 0:00 - 2.30 2:30 - 12:00 2.50 CSGIN1 12 B P 9.50 CSGIN1 12 A P 12:00 -'13'30 1.50 CSGIN1 12 B P 13:30 - 14:30 1.00 CSGIN1 OS A P 14:30 - 16:00 1.50 CSGIN1 12 C P 16:00 - 19:00 3.00 CSGIN1 12 B P 6709 2563 2563 2563 6709 6711 6711 684 150 150 0 0 0 6696 6696 6696 6696 Opr_ratir n Drilling 9 7/8" hole f/ 52500' to b709' MD / 3578' TVD 909' New hole made in 17 hrs Avg Rop 53.5' hr WOB 7 - 15 K TO 8500 SPP 2600 GPM 550 ' Inst. ROP 130 80 RPM + 130 RPM Motor PU wt 210 SO wt 110 Rot wt 142 Mud wt 9.8 ppg Avg ECD 10.3 ppg Avg BG 150 units Max BG 1684 units Daily slide hrs 4.5 ', Daily Rot hrs 7.3 Last survey @ 6598' 85.88 deg 305.29 Az I Note: 1430 HRS Spill Drill completed. Top drive overheating. circ & inspect top drive. Problem with blower. Circ & work pipe. Wiper trip to shoe. No hole problems. Max o'pull 40 k Repair top drive blower No accidents or pollution reported Repair Top drive blower motor TIH to bottom. No hole problems No fill Drill 9 7/8" hole f/ 6709' to 6711' MD / 3581' TVD Last survey 6667.87' 84.16 deg 304.68 Az Circ. 2 x BU Pump slug & POOH to Ghost Reamer @ 684' LD BHA & Excess HWDP f/ derrick Hold PJSM. Remove nukes & download MWD memory. LD MWD tools, Stab, Motor & Bit (5 - 5- Wt - 1/4 out - E J C/O Upper 5" pipe rams to 7 5/8" csg rams. Pull Vetco WB & set test plug. Body test to 3000 psi. RU 7 5/8" csg tools No accidents or pollution reported RU 7 5/8" csg tools. Run 162 Jts (6658' )7 5/8" csg # 29.7 L-80 BTC-M Land csg. Shoe @ 6696' MD / 3579' TVD 7 5/8 Hanger LOP = 35.7' RKB Top of F.C. @ 6611' MD RD Franks fillup tool &csg tools & RU Cmt head Circ BU Hold cementing PJSM Cement 7 5/8" Csg Purnp 10 bbls water. Test lines to 3500 psi. Pump50 bbls Dual spacer @ 11 ppg Mlx & pump 89.8 bbls (438 sxs) Premium class G cmt + .5°/ Halad 344 + .2% CFR-3 + .1 % HR-5. 15.8 ppg slurry Yield = 1.15 cult / sx 5 gal / sk water Displace wI 295 Bbls Enviromul Mud @ 9.3 ppg Bump Plug w/ 2900 psi Roat held OK CIP @ 1600 hrs TOC @ 5000' RD csg tools & LD landing Jt. Set 7 5/8" Packoff & test to 5000 psi. Set Vetco test plug prior to Laying down 5" DP 2/22/2007 10:03:09AM 8 ! r Well: OLIKTOK POINT I - 2 Project: NORTH SLOPE US ALASKA Operation Summary Report Site: OLIKTOK POINT Rig Name No: NABORS 245-E/245-E - _ Event: DRILLING ;Start Da te: 12/31/2006 'End Date: - i Spud Date: 1/4/2007 Active Datum: KB @52.Oft (KELLY BUSHING 1 UWI: OLIKTOK POINT I - 2 -NABORS 245-E) D,~te ,~i+i~e Duration Pha ;e Cade Subco Ihne P~AFI From ! rperation Sta~~-En~i ilirj del Codr= (f11 1y:UU - 0:00 5.00 CSGINI 06 D P 6696 RU & LD 5" DP. Iron roughneck unable to break 5" DP. Tong Tq. sensor @ 40 k to break DP 24 of 180 laid down @ report time Start cleaning Pits for Enviromul Mud 10 % done @ report time @ 2100 hrs Pumped 120 Bbls Diesel down 10 3/4" X 7 5/8 "Annulus for freeze protection @ 1.75 BPM w/ Max 1100 psi Shutdown pressure 550 psi No accidents or pollution reported 1/21/2007 0:00 - 11:00 11.00 DRLPRO 06 D P Laying down 5" DP & Cleaning Pits. LD total 180jts In 17 hrs Avg 11 jts / hr 11:00 - 19:00 8.00 DRLPRO 26 P C/O saver subs & service top drive. Repairs to iron roughneck. Removing 5" Dp from pipeshed & bring in 4" HT 38 into pipeshed & prepare to PU. Finished cleaning mud pits & prep for Invermul mud Took 4 men total 24 hrs to clean pits 19:00 - 21:30 2.50 DRLPRO 06 D P Start PU 4" HT 38 DP 21:30 - 23:30 2.00 DRLPRO 08 A T Repair /weld broken skate 23:30 - 0:00 0.50 DRLPRO 06 D P Continue PU 4" DP. 60 of 365 joints p/u. Avg 20 jts/hr. No accidents or pollution report 1/22/2007 0:00 - 17:00 17.00 DRLPRO 06 D P PU 4" HT 38 DP & rack in derrick. Total 405 jts Filling pits w/ 9.3 ppg Invermul mud. 17:00 - 20:00 3.00 DRLPRO 14 P C/O Upper pipe rams to 4" 20:00 - 0:00 4.00 DRLPRO 15 P Set Vetco test plug on 4" DP & test BOP's Test Annular & upper pipe rams to 250 / 3000 psi for 5/5min Test Upper & Lower IBOP's on top drive to 250 / 3000 psi for 5 / 5min Test Choke manifold v/v's to 250 / 3000 psi for 5 / 5 min 4 of 12 tests done @ report time No accidents or pollution reported 1!23/2007 0:00 - 5:00 5.00 DRLPRO 15 P 0 Finish Testing BOP's Tested all rams & annular to 250 / 3000 psi for 5min each Tested choke manifold. choke & kill valves & HCR to 250 / 3000 psi for 5min each Tested 4" TIW, Grey v/v, Upper & Lower IBOP's on top drive to 250 / 3000 psi. Pull Vetco test plug & set wear bushing. 5:00 - 7:00 2.00 DRLPRO 15 P 0 Test 7 5/8" Csg against Blind rams to 2200 psi for 30 min Blow down top drive & Choke manifold 7:00 - 12:00 5:00 DRLPRO 09 P 0 Slip & cut 100' Drill line & service top drive, blocks & crown. Bolt sheared on tiedown clamp. C/O clamp bolts for drill line 12:00 - 15:30 3.50 DRLPRO 06 D P Arrange Sperry tools in pipeshed & prepare to PU tools Hold PJSM 15:30 - 19:30 4.00 DRLPRO 06 D P PU 6 3/4" GeoPilot & Sperry MWD & Smart tools 2/22/2007 10:03:09AM 9 lJS ALASKA Operation Summary Report Well: OLIKTOK POINT I - 2 - Project NORTH SLOPE jSite OLIKTOK POINT Rig Name No: NABORS 245 E/245-E Event DRILLING Start Date: 12/31/2006 ~ End Date. Spud Date 1/4/2007 Active Datum: KB @52.Oft (KELLY BUSHING ~ UWI: OLIKTOK POINT I - 2 -NABORS 245-E) Date f im_° Duration Pha~;e Code Subco i ime Mt?From Start-End ihr) del Cod~~ Ifti 9..iv - U"UU 4.50 LIFKLPRU Vb U P 1/24/2007 0:00 - 1:00 1.00 DRLPRO 06 D P 200 1:00 - 3:00 2.00 DRLPRO 06 D P 333 3:00 - 4:00 1.00 DRLPRO OS A P 2700 4:00 - 8:30 4.50 DRLPRO 06 D P 2700 8:30 - 10:00 1.50 DRLPRO 06 D P 6279 10:00 - 12:00 2.00 DRLPRO 02 A P 6610 12:00 - 13:30 1.50 DRLPRO 10 A P 6695 13:30 - 15:00 1.50 DRLPRO 02 A P 6695 15:00 - 15:30 0.50 DRLPRO 02 A P 6711 15:30 - 16:00 0.50 DRLPRO 36 A P 6731 16:00 - 17:00 1.00 DRLPRO 02 A P 6731 17:00 - 19:30 2.50 DRLPRO 10 A P 6802 19:30 - 0:00 4.50 DRLPRO 02 A P 6802 1/25/2007 0:00 - 5:00 5.00 DRLPRO '02 = A 'P 7056 5:00 - 9 30 4.50 DRLPRO 10 T 7373 9:30 - 0:00 14.50 DRLPRO 02 A P 7469 1/26/2007 0:00 - 700 7.00 DRLPRO 02 A P 8700 7:00 - 13:30 6.50 DRLPRO 02 A P 9125 13:30 - 14:30 1.00 DRLPRO 08 A T 9576 14:30 - 17:00 2.50 DRLPRO 02 A P 9576 17:00 - 18:00 1.00 DRLPRO 06 B P 9747 18:00 - 18:30 0.50 DRLPRO 24 A W 9140 18:30 - 0 00 5.50 DRLPRO 02 A P 9084 1/27/2007 0:00 - 4:00 4.00 DRLPRO 20 U 9100 4:00 - 0:00 20.00 DRLPRO 20 P 9125 1/28/2007 0:00 - 4:45 4.75 DRLPRO 02 A P 10,415 4:45 - 5:30 0.75 DRLPRO 24 A W 10.715 5:30 - 19:00 13.50 DRLPRO 02 A P 10,715 19:00 - 19:45 0.75 DRLPRO 23 D T 11,920 t ip~r3tion Uplink to Sperry tools. Hold PJSivi & load flukes, shallow test MWD. Picking up Bat Sonic tool @ report time Distance from Bit Dir = 3T Res =.i1' GR = 58' Dens = 70' Neu = 85' PWD = 97 Sonic = 125' No accidents or pollution reported Finsh picking up Hwdp & Jars TIH to 2700' Test GeoPilot &Geospan signal TIH f/ 2700'. Tagged cement at 6279'. Clean out cement from 6279' to 6610'. Drilling wiper plug and float collar (c~ report time. No accidents no pollution reported. Change out Geospan Drill shoe @ 6695' and clean out to 6711' Drilled to 6731' and CBU Performed F.LT. to 12# EMW Drilled f/6731' t/6802' Tried to get survey Got surveys and drilled f/6802' t/7056' No accidents or pollution reported Drill and survey f/7056't/7373'. Worked on Geospan, pulled 1 stand and contiued work on Geospan. Drilled ahead f/7469' 08700' Last Survey @ 8564.45 - inc 90.17 - azi 323.54 No accidents. no reported polution Drilled ahead and surveyed (/8700' 09125'. Driifahead and survey from 9125' to 9576' Change out 2" valve on mud standpipe manifold and LD 1 stand DP. Drill aheatl ans survey from 9576' to 9747' POH to 9140' Waiting on orders for plug back Troughing and time drilling from 9084' to 9140' to get back into pay zone. Could not sidetrack @ 9140'. Pulled up to 9100'.. trougtled f/9100't/9130', time drilled f/9100' 09125'. Start open hole sidetrack @ 9125'. Drilled and surveyed ahead 010415' Drilled f/10415' t/10715". Stand back and WOO from geology Started build @10715' and drilled 011920' Lost power. Worked on generators and SCR. Restored power back to rig. 2/22/2007 10:03:09AM 10 tJS ALASKA. Operation Summary Report Well: OLIKTOK POINT I - 2 __ -__- Project: NORTH SLOPE Event: DRILLING Active Datum: KB @52.Oft (KELLY BUSHING -NABORS 245-E) f7.~te Tli~~e Duration Slant-End i,hr) 1 y:45 - 0:00 4.25 __._ _ __ 'Site: OLIKTOK POINT - - -- Start Date: 12/31/2006 End Date: -- - - - --- UWI: OLIKTOK POINT I - 2 I~ha~,e ~ Code Subco Ti~~in ib1D Finns de:' Cod:, it(1 DRLPRU 02 A P 11,920 1/29/2007 0:00 - 4:30 4.50 DRLPRO 02 A P 12.222 4:30 - 7:30 3.00 DRLPRO 48 P 12,711 7:30 - 18:00 10.5Q DRLPRO 03 B P 12,711 18:00 - 18:30 0.50 DRLPRO 07 P 6695 18:30 - 22:00 3.50 DRLPRO 06 B P 6695 22:00 - 0:00 2.00 DRLPRO 48 P 12,711 1/30/2007 0:00 - 1:30 1.50 DRLPRO 48 P 12,711 1-30 - 2:00 0.50 DRLPRO 26 P 12,711 2:00 - 2:45 0.75 DRLPRO 05 B P 12,621 2:45 - 12:00 925 DRLPRO 06 H P 12,621 12:00 - 13:30 1.50 DRLPRO 06 H P 12,441 13:30 - 14:00 0.50 DRLPRO 06 H P 331 14:00 - 15:30 1.50 DRLPRO 42 D P 146 15:30 - 17:00 1.50 DRLPRO 06 H P 146 17:00 - 18:00 1.00 DRLPRO 06 H P 56 18:00 - 0:00 6.00 DRLPRO 01 P 0 1/31/2007' 0:00 - 10:00 10.00 CSGPRO 12 A P 6596 10:00 - 11:00 1.00 CSGPRO 12 A P 12,711 11:00 - 12:00 1.00 CSGPRO 12 A F 6624 12:00 - 15:00 3.00 POST 05 B P 15:00 - 18:30 3.50 POST 26 P 18:30 - 0:00 5.50 POST 06 H P 2/1/2007 0:00` - 3:30 3 50 POST 3:30 - 5:00 1.50 POST 5:00 - 6 00 1.00 POST 6:00 - 11.30 5.50 POST 11:30 - 0:00 12.50 POST 2/2/2007 0:00 - 1:00 1.00 POST 1:00 - 2:30 1.50 POST 2:30 - 6:00 3.50 POST 6:00 15:00 9.00 POST 15:00 - 18:00 3.00 POST 18:00 - T9:00 1.00 POST 19:00 - 20:00 1.00 POST 06 H P 06 H P 06 H P 06 H P 24 B W 06 H P 08 A T 06 H P 08 A T 06 H P 28 A P 28 A P ~Rrg Name No: NABORS 245-E/245-E __ __ Spud Date: 1/4/2007 t )pc~ anon Drilled (/11920' U12222' Last survey 12,172.82 MD, Inc 90.29, Azi 319.69 No accidents, no reported polution. Drilled and surveyed f/12222' t/12711' TD. CBU X 3 Short trip to shoe @ 6695'. - Back Ream out of hole Serviced top drive. RIH to 12711' CBIJ X 3. Continue CBU X3 and work DP. Make up last stand and PJSM Rig up to lisp open hole to new mud, 285 bbl, disp w/18 bbls Pull 3 stands. Pump pill. POH to nukes. Had PJSM on nukes, removed same POH. LD MWD Tools Download MWD and LWD Tools POH and LD GeoPilot tools Clear floor and lay down geopilot surface tools RU and run 3-1/2" slotted liner. Put centralizers on top 109 jts tbg. No accidents, no reported polution Finished running 3-1/2" slotted liner, hanger and pkr. Set liner hanger and packer @ 6592'. Tested to 1500 psi P/U running tool out of hanger assembly and prep for change over to 8.8 ppg brine. PJSM for pumping operation. Pump 23 bbls baralean spacer, 23 bbls barascrub spacer and 23 bbls baralean spacer, displace 7-5/8" csg to 8.8 ppg w/3°/ KCI brine. Clean trip tank and shakers POH laying down DP. No accidents. no reported polution POH. Laying down DP to B.O.T. setting tool LD B O.T setting tool RIH w/DP in derrick LD 4" DP Shutdown. WOW. Post drilling rig cleaning. Phase 3 conditions lifted. Continue POH Laying down DP and cleaning mud pits, bailmill etc. Hydraulic leak on Iron Roughneck. Fix and repair same. Continue POH Laying down DP and mud cleanup. Using three supersuckers. Skate failed on lay down buggy. Repairing same. Continue POH laying down DP to surface. Cleaning pits Pull wear ring PJSM, Changed rams in BOP to 3-1/2". 2/22/2007 10:03:09AM 11 REC:FIV~n usa~asK~, APR, 0 9 2007 Operation Summary Report _ _ _ -- ~lasica Oi! & Gas Cons C Well: OLIKTOK POINT I - 2 . ~fNSSf Project: NORTH SLOPE Site: OLI KTOK POINT Rig Name No: fIC Ot'8QB Event: COMPLETION Start Date: 2/2/2 007 End Date: Spud Date: 1/4/2007 Active Datum: KB @52.Oft (KELLY BUSHING UWI: OLIKTOK POINT I - 2 -NABORS 245-E) Date Time Duration Phase Code !Subco Time t~1D From ' Operation Start-End ~hr) ~ _ ~ ~ del ~ Code (ft) 2/2/2007 15:30 - 17:30 2.00 EVALPR 36 A P RU top shieve for power cable 17:30 - 18:30 1.00 EVALPR 36 A P PJSM 18:30 - 20:30 2.00 EVALPR 36 A P RU to run 3-1 /2" tubing for pump placement. 20:30 - 0:00 3.50 EVALPR 36 A P PU pump assembly 2/3/2007 0:00 - 3:30 3.50 EVAL 36 A P PU & MU ESP equipment and nipple up assembly 3:30 - 15:30 12.00 EVAL 36 A P RIH with total of 203 jts 3-1 /2" 9.3# L-80 IBT tbg, n ipple assemblies and ESP assy clamping cable e very joint. PU Vetco tbg hanger & MU same into s tring end of assy @ 6543' MD \ 3566' TVD. 15:30 - 17:30 2.00 EVAL 36 A P Obtain final readings from centrilift gauge. BHP 1640 p si, BHT 79 degrees. RD sheave from derrick. Terminate ESP cable. MU BIW penetrator to end of cable. Wt up 123K, Wt down 93K. 17:30 - 18:30 1.00 EVAL 36 A P Engage penetrator to hanger. Perform continuity checks. Remove bushings. Land out tbg hanger. 18:30 - 19:00 0.50 EVAL 36 A P L ock down hanger. Test hanger to 5000 psi. Install two way check 19:00 - 22:30 3.50 EVAL 36 A P Clean rig & BOP's in prep for ND. 22:30 - 0:00 1.50 EVAL 36 A P ND BOP's No Accidents, no reported polution. 2/4/2007 0:00 - 12:00 72.00 EVAL 36 A P Continue prep to skid rig and RU for testing. Set Vetco wellhead and test tree + void t/5000 psi for 15 m in. Pull 2-way check, install back psi valve. 12:00 - 0:00 12.00 EVAL 36 A P F inished cleaning and RD of ball mill module, flushed li nes and moved same off pad. Continue moving equipment off pad. Returned mud materials to Baroid plant and continue cleaning pits. No accidents, no reported polution. 2/5/2007 0:00 - 12:00 12.00 RDMO 36 P Continue RD to skid rig to standby location and RU s urface testing equipment. Prep pumps for stack out. Get tools off rig floor, organize pipe shed, change oil in rig generator. Berm and lay herculite at rig standby- location. Blow down all glycol lines. 12:00 - 0:00 12.00 RDMO 36 P RD demob continued. Clean cellar area and pits. Drain drilling side H2O tank and blow down H2o lines & disconnect No accidents, no reported polution. 2/6/2007 0:00 - 2:30 2.50 RDMO 01 P F inished prep for rig move. Rig released at midnight 2 /6/07. 2:30 - 5:30 3.00 RDMO 01 P J ack up rig and prep to skid. Hydraulic line fitting b roke. 5:30 - 7:30 2.00 RDMO 01 T Repair hydraulic line on jacks. 7:30 - 11:00 3.50 RDMO 01 P F in jacking rig up. Skid rig on Lampsons from off the wells. 11:00 - 13:00 2.00 RDMO 01 P F inish moving rig. Start RU scaffolding around well h ead. Clean up rig mats, plywood, and herculite. 13:00 - 17:00 4.00 EVAL 36 A P Finish RU flowline. Run and connect suface electrical cable. 17:00 - 19:00 2.00 EVAL 36 A P F lush lines and tanks with hot diesel. Repair leaks. Pressure test lines to 500 and 2600 psi. 19:00 - 20:00 1.00 EVAL 36 A P Hold prejob operation meeting on well start up. 2/22/2007 10:05:34AM ~ ~ US ALASKA Operation Summary Report Well: OLIKTOK POINT I - 2 Project: NORTH SLOPE Site: OLIKTOK POINT Rig Name No: Event: COMPLETION Start Date: 2/2/2007 End Date: Spud Date: 1/4/2007 Active Datum: KB @52.Oft (KELLY BUSHING UWI: OLIKTOK POINT I - 2 -NABORS 245-E) Date Time Duration j Phase 'Code i Subco ~ Time ~ MD From ~ ~ ~ Operation Start-End (hr) ~~ del ~ Code , Ift_)_ 20.00 - 233u 3-50 EVAL 36 A P Pull BPV from tubing hanger Finish heat tracing lines. 23:30 - 23:45 0.25 EVAL 36 A P Open well to a closed choke. Record static readings. PIP = 1602 psi, BHT = 78.3, Mtr Temp = 77.2, WHP = 0 psi 23:45 - 0:00 0.25 EVAL 36 A P _,T Start ESP on 20/64th chk with 35 HZ & 26 amps. Fluid to surtace in 3 minutes. FTP 26 psi, WHT = 33, PIP = 1544 psi, BHT = 78.4, Mtr Temp = 84.8 Continue well clean up. 2/7/2007 0:00 - 0:45 0.75 EVAL 36 A P Continue well clean up on a 20/64th chk. FTP 144 psi, PIP = 1470 psi, BHT 79 degrees. Increase choke to 22164th. 0:45 - 2:00 1.25 EVAL 36 A P Produce well at 35 HZ, 23 amps on 22/64th chk. FTP 139 psi, PIP 1426 psi. Increase choke to 26/64th chk. Producing' 100% water. Cum water recovery 127 bbl. 2:00 - 9:00 7.00 EVAL 36 A P Produce well at 35 HZ, 24.5 amps on 26/64th chk. FTP 157 psi, PIP 1338 psi. Increase choke to 30/64th chk. Producing 82% oil. 9:00 - 11:00 2.00 EVAL 36 A P Produce well at 35 HZ, 25.3 amps on 30/64th chk. FTP 115 psi, PIP 1323 psi. Increase choke to 40/64th chk. Producing 85% oil at 1200 bpd rate. 11:00 - 13:00 2.00 EVAL 36 A P Produce well at 35 HZ, 26 amps on 40/64th chk. FTP 95 psi, PIP 1318 psi. Producing 99% oil at 1250 bpd rate. 13:00 - 16:00 3.00 EVAL 36 A P Produce well at 35 HZ, 25.3 amps on 50/64th chk. FTP 84 psi, PIP 1295 psi. Producing 99% oil at 1300 bpd rate. 16:00 - 17:00 1.00 EVAL 36 A P Producing well at 35 HZ, 25.6 amps on 64/64th chk. FTP 82 psi, PIP 1292 psi. Producing 99% oil at 1300 bpd rate. 17:00 - 0:00 7.00 EVAL 36 A P Producing well at 35 HZ, 26.9 amps on 128/ 64th chk, Switched to separator at 8:30 pm and frequency increased to 37 Hz at 10 pm. FTP 100 psi, PIP 1261 psi. Producing >99% oil at 1550 bpd rate. Cum prod 990 bo, 439 bbl of water & m d emulsion. ~ r 2/8/2007 0:00 - 2:00 2.00 EVAL 36 P i`R ~l f 'QrpC~.aC~ ~S Continue fl~well on 128/64th chk, 37 H , 26.9 amps. FTP 102 psi, PIP 1244 psi, gg = .597, API = 19.2, C02 = .05%, 1570 bopd, 10 bwpd. 2:00 - 8:00 6.00 EVAL 36 P Q~~ ,F,{d0~well on 128/64th chk, 40 HZ, 28.8 amps, FTP 108 psi, PIP 1201 psi, 1737 bopd, 15 bwpd. OBM contamination <1 %. Reid Vapor Pressure = .35 psi at 75 degrees. 8:00 - 0:00 16.00 EVAL 36 P Q~t ~ie~ well on 128/64 th chk, 47 HZ, 34.6 amps, Mtr Temp 190.6, FTP 124 psi, PIP 1060 psi, 2115 bopd, 0 bwpd, 175 mcfd, 82 GOR. API 19, gg = .593, C02 _ .05%, Cum Prod 2870 bo, 445 bw & mud. Continue to fjoa~well while waiting on coil tubing. 2/9/2007 0:00 - 3:45 3.75 ~(i~.~~ 5 ~~~ _~~ t Continue producing well on ESP at 47 HZ, 34 amps, ~p p Mtr Temp 191. FTP 124 psi, CP 42 psi, PIP = 1038 /+' l- / psi. Producing 2120 bopd, 0 bwpd, 174 mcfd, 82 GOR. yy.. ~~ Schlumberger coil tubing arrived on location at 3:45 i`c, am. Hold PJSM. Begin spotting and rigging up equipment. t{C~CI V Gv APR, 0 9 2007 Alaska Oil & Gas Cons. Commission 2/22/2007 10:05:34AM Ano .OraQe 2 US ALASKA Operation Summary Report Well: OLIKTOK POINT I - 2 Project: NORTH SLOPE Site: OLIKTOK POINT Rig Name No: Event: COMPLETION Start Date: 2/2/2007 End Date: Spud Date: 1/4/2007 Active Datum: KB @52.Oft (KELLY BUSHING UWI: OLIKTOK POINT I - 2 -NABORS 245-E) Date Time Duration ~~ Phase ~ Code ~ Subco ~~ Time ~~ t~AD From i Operation Start End (hr) ~ ~ del '~ Code (ft) 3:45 - 10:00 6.25 Continue producing well while rigging up coil tubing. At 8:51 am an air line froze off and created an upset in the levels in the separator. The ESP was shut off prior to the well ESD shut in while operations were corrected. The ESP was turned back on at 9:24 am and ramped back up to the pre-shut in mode of 47 HZ. During the shut in the PIP pressure increased from 1030 psi to 1185 psi. Coil tubing finish displacing reel with methanol mixture. 10:00 - 16:30 6.50 Well producing at 47 HZ. 2075 bpd rate. ~ Coil tubing cut line, remove ball, make up connector, perform pull test on connector to 22,000#. MU toolstring and stab lubricator. Test BOP's to 215 & 3000 psi. 16:30 - 19:30 3.00 Open swab valve on tree. TIH with coil tubing at 100' / min. Make PU stops at 3000' and 6000' while SGS and Oilphase are taking surface samples. Lower samplers down to 6420' coil tubing measured depth. Set and wait for clocks to fire detonators to take flowing downhole samples. 19:30 - 0:00 4.50 POOH with coil. Bleed off lubricator. Hold PJSM on breaking down toolstring. Remove first set of samplers (both sets fired and took samples). Install new samplers and downhole gauge into coil tubing string. Stab lubricator and pressure test to 250 & 3000 psi. Open swab valve and start TIH with coil for second set of samples. Well producing on ESP at 120 FTP, 31 CP, 2154 bopd, 0 bwpd, 165 mcfd, with ESP at 47 HZ and 33.9 amps. PIP = 1011 psi. API = 19.4. Cum oil produced 4730 bo. 2/10/2007 0:00 - 3:00 3.00 Continue TIH with samplers on coil tubing. Run to 6420' CT MD. Sit on bottom and allow clocks to detonate samplers. Obtain samples and POOH. 3:00 - 5:00 2.00 Pull into lubricator. Pump 6 bbl McOH into tree to freeze protect. Close swab valve and bleed off lubricator. Break off lubricator and break down tool string. Found that only one of the two samplers detonated and recovered a fluid sample. (Total recovery 3 of 4 samplers recovering flowing fluid samples). 5:00 - 6:00 1.00 Finish securing well. Leave coil rigged up on wellhead. Continue flowing well while securing well. Test data link between Expro data collection unit and the Centrilift BHP gague at 1 sec intervals, ok. 6:00 - 7:00 1.00 Shut in well at the wing valve of the tree at 06:07 am. Bleed off pressure on well test equipment. Final readings on well: ESP Produce on 128/64 th chk, 47 HZ, 33.9 amps, Mtr Temp 187 degrees, FTP 142 psi, WHT 67.8 degrees, CP 26 psi, PIP 996 psi, BHT 81.5 degrees, RECEIVED 59, 05% C02, 0% H2S, 19.3 API, 0% BS&W or go lids Rate: 2034 bopd, 145 mcfd, 0 bwpd, GOR 71 APR 0 9 2007 Cum Prod: 5280 bo, 445 bw & emulsion, 359 mcf SGS analysis on pressurized downhole sample: Alaska Oil & Gas Cons. COfI1tT11$SIOn GOR 72, Bo = 1.000, GG = .648, oil shrinkage = .9903, oil gravity = 19.2, .3% OBM contamination TlIII.lIV! Py4 2/22/2007 10:05:34AM • US ALASKA Operation Summary Report - Well: OLIKTOK POINT I - 2 - - Project: NORTH SLOPE Site: OLIKTOK POINT Rig Name No: Event: COMPLETION Start Date: 2/2/2007 End Date: Spud Date: 1/4/2007 Active Datum: KB @52.Oft (KELLY BUSHING UWI: OLIKTOK POINT I - 2 -NABORS 245-E) Date Time I Duration ' Phase Code Subco Time MD Fiom Operation l Start-knd LLj% {hr) ;~ ! ~ J dez, l Code' ! (ft) , ,_ 7:00 - 0:00 17.00 RU to data header at well with nitrogen and sweep lines clean. Continue RD polyflow lines, and data cables while recording pressure in 1 second intervals. 1 hr SI PIP = 1164 2hrSIPIP=1196 3 hr SI PIP = 1225 4 hr SI PIP = 1244 5 hr SI PIP = 1258 6 hr SI PIP = 1269 12 hr SI PIP = 1323 2/11/2007 0:00 - 12:00 12.00 Continue monitoring well for buildup analysis. 24 hr SI PIP = 1377 psi 30 hr SI PIP = 1395 psi Coil tubing arrive on location and begin rig up to TIH and take downhole static fluid samples. 12:00 - 15:30 3.50 Make up samplers to tool string. Stab lubricator. Break circulation through reel with McOH. Pressure test to 250 / 4000 psi. Open wing valve on tree at 14:15 pm. SITP 125 psi. Bleed off and start TIH with coil tubing. PIP at 14:15 pm was 1402 psi prior to TIH with coil. Total buildup time was 32 hrs 15 min. 15:30 - 18:00 2.50 Coil tubing on bottom. Wait on clocks to detonate the samplers. POOH with samplers. 18:00 - 19:00 1.00 To surface with coil. RD tools. Both clocks on samplers fired. Change out and install second set of samplers in tool string. Stab lubricator and pressure test. Start TIH with sample run #2. 19:00 - 0:00 5.00 TIH with sampers to 6420' CT MD. Set on bottom and allow clocks to detonate on samplers. Collect bottom hole samples. PU and start displacing 45 bbls of McOH down reel followed by 60 bbls of diesel while POOH. 2/12/2007 0:00 - 3:00 3.00 RU to pump diesel. Pressure test lines. Pump 80 bbl diesel at 1 bpm / 1330 psi down coil taking returns up EIVED coil x 3 1/2" tubing annulus. POOH at 125 fpm with REC coil while pumping. After BHA was secured in the lubricator, displace reel with nitrogen at 1500 scfm / ~ 9 207 A P R 2375. psi taking returns to the well test tanks. , 3:00 - g:00 6.00 SD N2 and bleed pressure off reel. Secure tree. Break down coil tubing sampling BHA. Successfully Alaska Oii & Gas Cons. ~`,, ~a~~is~lnn recovered second set of samples. RDMO coil tubing Unit. 9:00 - 11:00 2.0o Anchor~;:v Open tubing to bleed tank in order to run BPV. Small finger stream flow. Bleed off 65 psi cp to zero. Open tubing with 35 psi SITP. RD Vetco and call for lubricator to set BPV 11:00 - 13:00 2.00 Rig Little Red Hot Oil unit to annulus. Pump 60 bbl diesel down backside to freeze protect. Disconnect power lines between VSD and gen sets. 13:00 - 15:00 2.00 RU Vetco lubricator and set BPV in hanger. Secure tree. - 15:00 - 18:00 3.00 Disconnect flowline from tree. Hook up hot oil unit and flush surface lines with hot diesel. Hook up vac truck and suction dry. Begin rigging down surface lines. 18:00 - 0:00 6.00 Dismantle tank farm. Continue RD lines and well test equipment. 2/13/2007 0:00 - 0:00 24.00 RDMO 01 P Rigged down and scheduled demob activities. This is the last daily report and includes final costs and cost estimates. Telecommunications to the rig will be removed the morning of 2/15/07. It's been fun! ~'~ 2/22/2007 10:05:34AM ! • Halliburton Company Survey Report Company:. Kerr McGee Date: 2/16/2007 Time: 14:29:22 Page: 1 Field: OLIKTOK POINT Co-ordinate(NE) Reference:. Well; Oliktok Point I-2, True North - Sited OLIKTOK POINT Vertical (TVD) Reference: Oliktok Point I-2 PBi :53.6 Well: Oliktok Point I-2 Section (VS) Reference:. Well (O.OON,O.OOE,303.55Azi) Wellpath: Oliktok Point I-2 P61 Survey Calculation Method: Minimum Curvature Db: Oracle - Survey MD Incl Azim TVD Sys TVD N/S E/W MapN MapE Tool ft deg deg ft ft ft ft ft ft 41.45 0.00 0.00 41.45 -12.20 0.00 0.00 6036577.31 ' 516753.79 . TIE LINE 96.00 0.07 344.94 96.00 42.35 0.03 -0.01 6036577.34 516753.79 CB-GYRO-SS 113.00 0.34 349.14 113.00 59.35 0.09 -0.02 6036577.40 516753.77 CB-GYRO-SS 202.00 1.02 316.00 201.99 i 48.34 0.92 -0.62 6036578.23 516753.17 CB-GYRO-SS 326.00 3.81 311.06 325.87 272.22 4.42 -4.49 6036581.72 516749.29 CB-GYRO-SS 418.47 5.83 312.90 418.01 364.36 9.64 -10.25 6036586.92 516743.52 MWD+IFR-AK-CAZ-SC 514.01 7.25 310.31 512.93 459.28 16.84 -18.40 6036594.10 516735.35 MWD+IFR-AK-CAZ-SC 604.55 11.31 304.55 602.26 548.61 25.58 -30.08 6036602.81 516723.66 MWD+IFR-AK-CAZ-SC 696.96 15.16 300.45 692.20 638.55 36.84 -47.97 6036614.04 516705.75 MWD+IFR-AK-CAZ-SC 787.18 17.41 300.32 778.80 725.15 49.64 -69.79 6036626.78 516683.90 MWD+IFR-AK-CAZ-SC 868.57 18.19 300.53 856.29 802.64 62.24 -91.24 6036639.33 516662.42 MWD+IFR-AK-CAZ-SC 957.08 21.68 299.86 939.49 885.84 77.40 -117.33 6036654.43 516636.30 MWD+IFR-AK-CAZ-SC 1049.68 24.71 299.53 1024.59 970.94 95.46 -149.01 6036672.42 516604.58 MWD+IFR-AK-CAZ-SC 1144.90 29.56 298.03 1109.31 1055.66 116.32 -187.08 6036693.19 516566.47 MWD+IFR-AK-CAZ-SC 1238.10 35.22 295.20 1187.98 1134.33 138.58 -231.73 6036715.35 516521.77 MWD+IFR-AK-CAZ-SC 1332.76 37.74 297.84 1264.09 1210.44 163.74 -282.06 6036740.39 516471.40 MWD+IFR-AK-CAZ-SC 1429.59 40.33 300.76 1339.30 1285.65 193.61 -335.20 6036770.14 516418.19 MWD+IFR-AK-CAZ-SC 1523.70 41.02 300.90 1410.68 1357.03 225.05 -387.87 6036801.46 516365.46 MWD+IFR-AK-CAZ-SC 1597.12 41.51 301.26 1465.87 1412.22 250.05 -429.34 6036826.36 516323.93 MWD+IFR-AK-CAZ-SC 1713.22 38.52 301.21 1554.77 1501.12 288.75 -493.16 6036864.92 516260.03 MWD+IFR-AK-CAZ-SC 1807.39 41.56 300.15 1626.86 1573.21 319.65 -545.27 6036895.69 516207.86 MWD+IFR-AK-CAZ-SC 1900.47 44.50 299.51 1694.90 1641.25 351.23 -600.37 6036927.14 516152.70 MWD+IFR-AK-CAZ-SC 1995.48 49.22 298.79 1759.84 1706.19 384.97 -660.90 6036960.75 516092.09 MWD+IFR-AK-CAZ-SC 2090.77 59.40 299.02 1815.36 1761.71 422.34 -728.56 6036997.96 516024.35 MWD+IFR-AK-CAZ-SC 2180.81 64.25 300.78 1857.87 1804.22 461.92 -797.33 6037037.38 515955.50 MWD+IFR-AK-CAZ-SC 2280.81 63.37 302.15 1902.00 1848.35 508.75 -873.87 6037084.03 515878.87 MWD+IFR-AK-CAZ-SC 2375.52 64.55 302.74 1943.58 1889.93 554.40 -945.68 6037129.52 515806.96 MWD+IFR-AK-CAZ-SC 2469.70 64.95 303.06 1983.76 1930.11 600.67 -1017.20 6037175.62 515735.35 MWD+IFR-AK-CAZ-SC 2510.28 64.51 303.72 2001.08 1947.43 620.87 -1047.84 6037195.75 515704.66 MWD+IFR-AK-CAZ-SC Field: OLIKTOK POINT Map System:US State Plane Coordinate System 1927 Map Zone: Alaska, Zone 4 Geo Datum: NAD27 (Clarke 1866) Coordinate System: Well Centre Sys Datum: Mean Sea Level Geomagnetic Model: bggm2006 Well: Oliktok Point I-2 Slot Name: Well Position: +N/-S -3.83 ft Northing: 6036577.31 ft Latitude: 70 30 40.023 N +E/-W -7.07 ft Easting : 516753.79 ft Longitude: 149 51 46.449 W Position Uncertainty: 0.00 ft Wellpath: Oliktok Point I-2 PB1 500292332670 Drilled From: Tie-on Depth: Well Ref. Point 41.45 ft ~ Current Datum: Oliktok Point I-2 PBi : Height 53.65 ft `Above System Datum: Mean Sea Level Magnetic Data: 1/1/2007 Field Strength: 57618 nT Declination: Mag Dip Angle: 23.60 deg 80.94 deg Vertical Section: Depth From (TVD) +N/-S +E/-W Direction ft ft ft deg 41.45 0.00 0.00 303.55 Survey Program for Definitive Wellpath Date: 2/16/2007 Validated: No Version: 3 Actual From To Survey Toolcode Tool Name ft ft 96.00 326.00 Oliktok Point I-2 PB1 Gyro (96 CB-GYRO-SS Camera based gyro single shot 418.47 6674.35 Oliktok Point I-2 PBi IIFR+MS MWD+IFR-AK-CAZ-SC MWD+IFR AK CAZ SCC Halliburton Company Survey Report Company: Kerr McGee Field: OLIKTOK POINT Dater 2/16/2007 Time: 14:29:22 Pager 2 Co•ordinate(NE) Reference: Well: Oliktok Point I-2, True North Site: OLIKTOK POINT Vertica l (TVD) Reference: Oli ktok Point I-2 PBi :53.6 Well: Oliktok Point I-2 Section (VS) Reference: Well (O.OON,O.OOE,303.55Azi) Wellpath: Oliktok Point I-2 PBi Survey Calculation Method: Minimum Curvature Db: Oracle Survey MD Incl Azim TVD Sys TVD N/S E/W MapN MapE Tool ft deg deg ft ft ft ft ft ft 2612.88 64.28 303.92 2045.42 1991.77 672.36 -1124.71 6037247.06 515627.69 MWD+IFR-AK-CAZ-SC 2706.83 60.97 303.45 2088.61 2034.96 718.63 -1194.11 6037293.17 515558.18 MWD+IFR-AK-CAZ-SC 2801.57 61.61 303.76 2134.12 2080.47 764.62 -1263.32 6037339.00 515488.88 MWD+IFR-AK-CAZ-SC 2896.10 62.22 304.39 2178.63 2124.98 811.35 -1332.40 6037385.57 515419.70 MWD+IFR-AK-CAZ-SC 2990.18 61.72 304.75 2222.84 2169.19 858.47 -1400.78 6037432.53 515351.22 MWD+IFR-AK-CAZ-SC 3085.07 63.44 304.83 2266.53 2212.88 906.53 -1469.95 6037480.43 515281.95 MWD+IFR-AK-CAZ-SC 3178.93 65.83 305.28 2306.74 2253.09 955.24 -1539.37 6037528.98 515212.43 MWD+IFR-AK-CAZ-SC 3273.56 67.83 306.00 2343.97 2290.32 1005.93 -1610.06 6037579.50 515141.62 MWD+IFR-AK-CAZ-SC 3369.65 65.03 306.03 2382.39 2328.74 1057.71 -1681.30 6037631.12 515070.28 MWD+IFR-AK-CAZ-SC 3463.61 63.39 306.11 2423.27 2369.62 1107.52 -1749.68 6037680.77 515001.80 MWD+IFR-AK-CAZ-SC 3558.17 64.93 305.17 2464.48 2410.83 1157.11 -1818.84 6037730.19 514932.53 MWD+IFR-AK-CAZ-SC 3654.05 64.08 305.05 2505.75 2452.10 1206.88 -1889.64 6037779.80 514861.63 MWD+IFR-AK-CAZ-SC 3748.20 63.70 304.87 2547.19 2493.54 1255.32 -1958.92 6037828.08 514792.24 MWD+IFR-AK-CAZ-SC 3842.28 64.16 305.16 2588.53 2534.88 1303.81 -2028.14 6037876.41 514722.92 MWD+IFR-AK-CAZ-SC 3936.91 63.70 303.59 2630.12 2576.47 1351.81 -2098.29 6037924.24 514652.67 MWD+IFR-AK-CAZ-SC 4031.54 63.17 302.14 2672.44 2618.79 1397.74 -2169.38 6037970.01 514581.49 MWD+IFR-AK-CAZ-SC 4124.95 62.30 302.17 2715.23 2661.58 1441.93 -2239.67 6038014.03 514511.10 MWD+IFR-AK-CAZ-SC 4219.89 66.78 303.67 2756.04 2702.39 1488.52 -2311.60 6038060.46 514439.08 MWD+IFR-AK-CAZ-SC 4313.49 66.22 302.51 2793.36 2739.71 1535.38 -2383.51 6038107.15 514367.07 MWD+IFR-AK-CAZ-SC 4407.67 65.41 302.18 2831.95 2778.30 1581.35 -2456.09 6038152.95 514294.39 MWD+IFR-AK-CAZ-SC 4501.76 64.28 302.00 2871.94 2818.29 1626.59 -2528.24 6038198.03 514222.14 MWD+IFR-AK-CAZ-SC 4595.95 63.51 302.22 2913.38 2859.73 1671.55 -2599.89 6038242.82 514150.40 MWD+IFR-AK-CAZ-SC 4688.81 66.37 303.22 2952.71 2899.06 1717.02 -2670.64 6038288.13 514079.55 MWD+IFR-AK-CAZ-SC 4783.36 67.97 303.44 2989.40 2935.75 1764.90 -2743.45 6038335.84 514006.64 MWD+IFR-AK-CAZ-SC 4878.38 69.75 302.66 3023.67 2970.02 1813.23 -2817.73 6038383.99 513932.26 MWD+IFR-AK-CAZ-SC 4971.10 69.45 302.46 3055.99 3002.34 1860.00 -2890.98 6038430.59 513858.91 MWD+IFR-AK-CAZ-SC 5064.41 70.24 302.67 3088.14 3034.49 1907.15 -2964.80 6038477.57 513784.99 MWD+IFR-AK-CAZ-SC 5165.08 69.59 302.99 3122.71 3069.06 1958.41 -3044.25 6038528.65 513705.44 MWD+IFR-AK-CAZ-SC 5253.48 68.96 302.66 3153.99 3100.34 2003.23 -3113.73 6038573.30 513635.87 MWD+IFR-AK-CAZ-SC 5348.03 67.45 302.59 3189.09 3135.44 2050.56 -3187.67 6038620.46 513561.83 MWD+IFR-AK-CAZ-SC 5443.88 69.96 305.48 3223.91 3170.26 2100.55 -3261.65 6038670.28 513487.74 MWD+IFR-AK-CAZ-SC 5538.88 69.28 305.80 3256.99 3203.34 2152.44 -3334.02 6038722.00 513415.26 MWD+IFR-AK-CAZ-SC 5635.20 69.42 305.37 3290.96 3237.31 2204.88 -3407.32 6038774.28 513341.85 MWD+IFR-AK-CAZ-SC 5729.50 68.58 304.91 3324.75 3271.10 2255.56 -3479.31 6038824.78 513269.75 MWD+IFR-AK-CAZ-SC 5827.39 69.67 305.64 3359.63 3305.98 2308.38 -3553.98 6038877.43 513194.97 MWD+IFR-AK-CAZ-SC 5921.99 69.24 306.47 3392.83 3339.18 2360.51 -3625.59 6038929.40 513123.25 MWD+IFR-AK-CAZ-SC 6012.76 68.80 306.66 3425.33 3371.68 2411.00 -3693.66 6038979.73 513055.07 MWD+IFR-AK-CAZ-SC 6107.61 67.83 306.48 3460.38 3406.73 2463.51 -3764.45 6039032.08 512984.18 MWD+IFR-AK-CAZ-SC 6202.14 67.99 306.38 3495.93 3442.28 2515.53 -3834.92 6039083.93 512913.59 MWD+IFR-AK-CAZ-SC 6295.28 67.79 306.91 3530.99 3477.34 2567.03 -3904.16 6039135.27 512844.25 MWD+IFR-AK-CAZ-SC 6391.43 67.17 305.81 3567.81 3514.16 2619.69 -3975.68 6039187.76 512772.61 MWD+IFR-AK-CAZ-SC 6485.56 66.13 306.18 3605.12 3551.47 2670.48 -4045.60 6039238.39 512702.58 MWD+IFR-AK-CAZ-SC 6580.11 66.09 306.29 3643.41 3589.76 2721.58 -4115.33 6039289.32 512632.75 MWD+IFR-AK-CAZ-SC 6674.35 65.65 306.36 3681.94 3628.29 2772.52 -4184.62 6039340.11 512563.35 MWD+IFR-AK-CAZ-SC 6715.00 65.65 306.36 3698.70 3645.05 2794.48 -4214.45 6039361.99 512533.48 PROJECTED to TD • Halliburton Company Survey Report ~~ Company: Kerr MCGee Date: 2/16!2007 Time: 15:37:16 Page: 1 Field: OLIKTOK POINT Co-ordinate(NE) Reference: Well: Oliktok Point I- 2, True North Site: OLIKTOK POINT Vertical (TVD) Reference: Oliktok Point I-2 P61: 53.6 Well: Oliktok Point I-2 Section (VS) Reference: Well (O.OON,O.OOE,309.35Azi) Wellpath: Oliktok Point 1-2 P62 Survey Calculation Method: Minimum Curvature Db: Oracle Field: OLIKTOK POINT Map System:US State Plane Coordinate System 1927 Map Zone: Alaska, Zone 4 Geo Datum: NAD27 (Clarke 1866) Coordinate System: Well Centre Sys Datum: Mean Sea Level Geomagnetic Model: bggm2006 Well: Oliktok Point 1-2 Slot Name: Well Position: +N/-S -3.83 ft Northing: 6036577.31 ft Latitude: 70 30 40.023 N +E/-W -7.07 ft Easting : 516753.79 ft Longitude: 149 51 46.449 W Position Uncertainty: 0.00 ft Wellpath: Oliktok Point I-2 P62 Drilled From: Oliktok Point I-2 PBi 500292332671 Tie-on Depth: 4124.95 ft Current Datum: Oliktok Point I-2 P61: Height 53.65 ft Above System Datum: Mean Sea Level Magnetic Data: 1/1/2007 Declination: 23.60 deg Field Strength: 57618 nT Mag Dip Angle: 80.94 deg Vertical Section: Depth From (TVD) +N/-S +E/-W Direction ft ft ft deg 41.45 0.00 0.00 309.35 Survey Program for Definitive Wellpath Date: 2/16/2007 Validated: No Version: 1 Actual From To Survey Toolcode Tool Name ft ft 96.00 326.00 Oliktok Point I -2 P61 Gyro (96 CB-GYRO-SS Camera based gyro single shot 418.47 4124.95 Oliktok Point I -2 P81 IIF R+MS MWD+IFR-AK-CAZ-SCMWD+IFR AK CAZ SCC 4229.11 9707.90 Oliktok Point I -2 P62 IIF R+MS MWD+IFR-AK-CAZ-SCMWD+IFR AK CAZ SCC Survey MD Inc! Azim TVD Sys TVD N/S E/W MapN MapE Tool ft deg deg ft ft ft ft ft ft 41.45 0.00 0.00 41.45 -12.20 0.00 0.00 6036577.31 516753.79 TIE LINE 96.00 0.07 344.94 96.00 42.35 0.03 -0.01 6036577.34 516753.79 CB-GYRO-SS 113.00 0.34 349.14 113.00 59.35 0.09 -0.02 6036577.40 516753.77 CB-GYRO-SS 202.00 1.02 316.00 201.99 148.34 0.92 -0.62 6036578.23 516753.17 CB-GYRO-SS 326.00 3.81 311.06 325.87 272.22 4.42 -4.49 6036581.72 516749.29 CB-GYRO-SS 418.47 5.83 312.90 418.01 364.36 9.64 -10.25 6036586.92 516743.52 MWD+IFR-AK-CAZ-SC 514.01 7.25 310.31 512.93 459.28 16.84 -18.40 6036594.10 516735.35 MWD+IFR-AK-CAZ-SC 604.55 11.31 304.55 602.26 548.61 25.58 -30.08 6036602.81 516723.66 MWD+IFR-AK-CAZ-SC 696.96 15.16 300.45 692.20 638.55 36.84 -47.97 6036614.04 516705.75 MWD+IFR-AK-CAZ-SC 787.18 17.41 300.32 778.80 725.15 49.64 -69.79 6036626.78 516683.90 MWD+IFR-AK-CAZ-SC 868.57 18.19 300.53 856.29 802.64 62.24 -91.24 6036639.33 516662.42 MWD+IFR-AK-CAZ-SC 957.08 21.68 299.86 939.49 885.84 77.40 -117.33 6036654.43 516636.30 MWD+IFR-AK-CAZ-SC 1049.68 24.71 299.53 1024.59 970.94 95.46 -149.01 6036672.42 516604.58 MWD+IFR-AK-CAZ-SC 1144.90 29.56 298.03 1109.31 1055.66 116.32 -187.08 6036693.19 516566.47 MWD+IFR-AK-CAZ-SC 1238.10 35.22 295.20 1187.98 1134.33 138.58 -231.73 6036715.35 516521.77 MWD+IFR-AK-CAZ-SC 1332.76 37.74 297.84 1264.09 1210.44 163.74 -282.06 6036740.39 516471.40 MWD+IFR-AK-CAZ-SC 1429.59 40.33 300.76 1339.30 1285.65 193.61 -335.20 6036770.14 516418.19 MWD+IFR-AK-CAZ-SC 1523.70 41.02 300.90 1410.68 1357.03 225.05 -387.87 6036801.46 516365.46 MWD+IFR-AK-CAZ-SC 1597.12 41.51 301.26 1465.87 1412.22 250.05 -429.34 6036826.36 516323.93 MWD+IFR-AK-CAZ-SC 1713.22 38.52 301.21 1554.77 1501.12 288.75 -493.16 6036864.92 516260.03 MWD+IFR-AK-CAZ-SC 1807.39 41.56 300.15 1626.86 1573.21 319.65 -545.27 6036895.69 516207.86 MWD+IFR-AK-CAZ-SC 1900.47 44.50 299.51 1694.90 1641.25 351.23 -600.37 6036927.14 516152.70 MWD+IFR-AK-CAZ-SC 1995.48 49.22 298.79 1759.84 1706.19 384.97 -660.90 6036960.75 516092.09 MWD+IFR-AK-CAZ-SC 2090.77 59.40 299.02 1815.36 1761.71 422.34 -728.56 6036997.96 516024.35 MWD+IFR-AK-CAZ-SC 2180.81 64.25 300.78 1857.87 1804.22 461.92 -797.33 6037037.38 515955.50 MWD+IFR-AK-CAZ-SC 2280.81 63.37 302.15 1902.00 1848.35 508.75 -873.87 6037084.03 515878.87 MWD+IFR-AK-CAZ-SC 2375.52 64.55 302.74 1943.58 1889.93 554.40 -945.68 6037129.52 515806.96 MWD+IFR-AK-CAZ-SC 2469.70 64.95 303.06 1983.76 1930.11 600.67 -1017.20 6037175.62 515735.35. MWD+IFR-AK-CAZ-SC • Halliburton Company Survey Report Company: Kerr McGee Date: 2/16/2007 Time: 15:37:16 Page: 2 Field: OL IKTOK POINT Co-ordinate(NE) Reference: Well: Oliktok Point I-2, True North Site: OL IKTOK POINT Vertical (TVD) Reference: Oli ktok Point I-2 PB i: 53.6 Well: Oliktok Point I-2 Section (VS) Reference: Well (O.OON,O.OOE,309.35Azi) Wellpath: Oliktok Point I-2 P62 Survey Calculation Method: Minimum Curvature Db: Oracle Survey MD Incl Aziro TVD Sys TVD N/S E!W MapN MapE Tool ft deg deg ft ft ft ft ft ft 2510.28 64.51 303.72 2001.08 1947.43 620.87 -1047.84 6037195.75 515704.66 MWD+IFR-AK-CAZ-SC 2612.88 64.28 303.92 2045.42 1991.77 672.36 -1124.71 6037247.06 515627.69 MWD+IFR-AK-CAZ-SC 2706.83 60.97 303.45 2088.61 2034.96 718.63 -1194.11 6037293.17 515558.18 MWD+IFR-AK-CAZ-SC 2801.57 61.61 303.76 2134.12 2080.47 764.62 -1263.32 6037339.00 515488.88 MWD+IFR-AK-CAZ-SC 2896.10 62.22 304.39 2178.63 2124.98 811.35 -1332.40 6037385.57 515419.70 MWD+IFR-AK-CAZ-SC 2990.18 61.72 304.75 2222.84 2169.19 858.47 -1400.78 6037432.53 515351.22 MWD+IFR-AK-CAZ-SC 3085.07 63.44 304.83 2266.53 2212.88 906.53 -1469.95 6037480.43 515281.95 MWD+IFR-AK-CAZ-SC 3178.93 65.83 305.28 2306.74 2253.09 955.24 -1539.37 6037528.98 515212.43 MWD+IFR-AK-CAZ-SC 3273.56 67.83 306.00 2343.97 2290.32 1005.93 -1610.06 6037579.50 515141.62 MWD+IFR-AK-CAZ-SC 3369.65 65.03 306.03 2382.39 2328.74 1057.71 -1681.30 6037631.12 515070.28 MWD+IFR-AK-CAZ-SC 3463.61 63.39 306.11 2423.27 2369.62 1107.52 -1749.68 6037680.77 515001.80 MWD+IFR-AK-CAZ-SC 3558.17 64.93 305.17 2464.48 2410.83 1157.11 -1818.84 6037730.19 514932.53 MWD+IFR-AK-CAZ-SC 3654.05 64.08 305.05 2505.75 2452.10 1206.88 -1889.64 6037779.80 514861.63 MWD+IFR-AK-CAZ-SC 3748.20 63.70 304.87 2547.19 2493.54 1255.32 -1958.92 6037828.08 514792.24 MWD+IFR-AK-CAZ-SC 3842.28 64.16 305.16 2588.53 2534.88 1303.81 -2028.14 6037876.41 514722.92 MWD+IFR-AK-CAZ-SC 3936.91 63.70 303.59 2630.12 2576.47 1351.81 -2098.29 6037924.24 514652.67 MWD+IFR-AK-CAZ-SC 4031.54 63.17 302.14 2672.44 2618.79 1397.74 -2169.38 6037970.01 514581.49 MWD+IFR-AK-CAZ-SC 4124.95 62.30 302.17 2715.23 2661.58 1441.93 -2239.67 6038014.03 514511.10 MWD+IFR-AK-CAZ-SC 4229.11 61.50 301.90 2764.29 2710.64 1490.67 -2317.56 6038062.59 514433.11 MWD+IFR-AK-CAZ-SC 4291.63 61.46 302.25 2794.15 2740.50 1519.84 -2364.11 6038091.66 514386.50 MWD+IFR-AK-CAZ-SC 4328.44 61.41 302.57 2811.75 2758.10 1537.16 -2391.40 6038108.92 514359.17 MWD+IFR-AK-CAZ-SC 4398.49 63.64 302.87 2844.06 2790.41 1570.76 -2443.69 6038142.39 514306.81 MWD+IFR-AK-CAZ-SC 4424.86 64.75 303.01 2855.54 2801.89 1583.67 -2463.61 6038155.25 514286.86 MWD+IFR-AK-CAZ-SC 4477.49 65.65 302.66 2877.62 2823.97 1609.57 -2503.75 6038181.07 514246.67 MWD+IFR-AK-CAZ-SC 4516.91 66.07 302.86 2893.74 2840.09 1629.04 -2534.01 6038200.46 514216.37 MWD+IFR-AK-CAZ-SC 4611.49 64.47 303.82 2933.30 2879.65 1676.24 -2605.77 6038247.50 514144.51 MWD+IFR-AK-CAZ-SC 4706.88 64.38 303.26 2974.48 2920.83 1723.79 -2677.49 6038294.88 514072.69 MWD+IFR-AK-CAZ-SC 4800.70 65.46 304.02 3014.25 2960.60 1770.86 -2748.23 6038341.79 514001.85 MWD+IFR-AK-CAZ-SC 4895.84 65.44 303.41 3053.78 3000.13 1818.89 -2820.21 6038389.65 513929.77 MWD+IFR-AK-CAZ-SC 4990.88 67.99 303.62 3091.35 3037.70 1867.09 -2892.99 6038437.68 513856.89 MWD+IFR-AK-CAZ-SC 5086.65 67.65 303.36 3127.50 3073.85 1916.03 -2966.95 6038486.45 513782.82 MWD+IFR-AK-CAZ-SC 5181.83 65.07 303.00 3165.67 3112.02 1963.75 -3039.92 6038533.99 513709.76 MWD+IFR-AK-CAZ-SC 5276.30 65.23 304.07 3205.37 3151.72 2011.10 -3111.37 6038581.18 513638.20 MWD+IFR-AK-CAZ-SC 5371.72 68.52 304.87 3242.84 3189.19 2060.77 -3183.70 6038630.68 513565.77 MWD+IFR-AK-CAZ-SC 5466.73 68.24 305.38 3277.85 3224.20 2111.59 -3255.94 6038681.33 513493.42 MWD+IFR-AK-CAZ-SC 5560.13 67.61 304.91 3312.95 3259.30 2161.41 -3326.72 6038730.99 513422.54 MWD+IFR-AK-CAZ-SC 5654.13 66.47 305.26 3349.61 3295.96 2211.16 -3397.54 6038780.57 513351.61 MWD+IFR-AK-CAZ-SC 5749.24 66.91 305.67 3387.25 3333.60 2261.84 -3468.68 6038831.09 513280.36 MWD+IFR-AK-CAZ-SC 5843.47 71.64 305.53 3420.59 3366.94 2313.13 -3540.33 6038882.21 513208.61 MWD+IFR-AK-CAZ-SC 5937.92 71.07 305.38 3450.78 3397.13 2365.04 -3613.22 6038933.95 513135.61 MWD+IFR-AK-CAZ-SC 6032.85 72.30 304.35 3480.61 3426.96 2416.55 -3687.17 6038985.29 513061.55 MWD+IFR-AK-CAZ-SC 6127.29 74.48 303.75 3507.61 3453.96 2467.22 -3762.15 6039035.78 512986.47 MWD+IFR-AK-CAZ-SC 6221.47 78.65 304.21 3529.49 3475.84 2518.40 -3838.09 6039086.80 512910.42 MWD+IFR-AK-CAZ-SC 6315.11 82.15 305.04 3545.10 3491.45 2570.86 -3914.05 6039139.08 512834.35 MWD+IFR-AK-CAZ-SC 6411.17 85.51 305.80 3555.42 3501.77 2626.20 -3991.87 6039194.24 512756.41 MWD+IFR-AK-CAZ-SC 6504.67 85.22 305.09 3562.98 3509.33 2680.25 -4067.79 6039248.11 512680.38 MWD+IFR-AK-CAZ-SC 6598.00 85.88 305.29 3570.22 3516.57 2733.87 -4143.83 6039301.55 512604.22 MWD+IFR-AK-CAZ-SC 6667.85 84.16 304.68 3576.28 3522.63 2773.77 -4200.84 6039341.32 512547.13 MWD+IFR-AK-CAZ-SC 6764.60 86.71 308.02 3583.99 3530.34 2830.92 -4278.50 6039398.29 512469.35 MWD+IFR-AK-CAZ-SC 6859.91 89.80 310.18 3586.89 3533.24 2891.00 -4352.41 6039458.19 512395.31 MWD+IFR-AK-CAZ-SC 6952.42 93.82 313.03 3583.97 3530.32 2952.37 -4421.53 6039519.40 512326.06 MWD+IFR-AK-CAZ-SC 7046.28 90.72 314.24 3580.25 3526.60 3017.08 -4489.40 6039583.95 512258.05 MWD+IFR-AK-CAZ-SC • • Halliburton Company Survey Report Company: Kerr McGee Field: OLIKTOK POINT Date: 2/16/2007 Time: 15:37:16. Page: 3 Co-ordinate(NE) Reference: Wett: Oliktok Point 1-2, True North Site: OLIKTOK POINT Vertical (TVD) Reference: Oli ktok Point I-2 PB i :53.6 Well: Oli ktok Point I-2 Section (VS) Reference: Well (O.OON,O.OOE,309.35Azi) Wellpath: Oli ktok Point I-2 P62 Survey Calculation Method: Minimum Curvature Db: Oracle Survey MD Incl Azim TVD Sys TVD N/S E/W MapN MapE Tool ft deg deg ft ft ft ft ft ft 7143.76 88.68 311.31 3580.76 3527.11 3083.27 -4560.94 6039649.97 512186.37 MWD+IFR-AK-CAZ-SC 7237.95 88.06 309.10 3583.44 3529.79 3144.04 -4632.84 6039710.58 512114.33 MWD+IFR-AK-CAZ-SC 7335.17 87.20 309.63 3587.46 3533.81 3205.65 -4707.94 6039772.01 512039.11 MWD+IFR-AK-CAZ-SC 7424.98 88.43 313.00 3590.88 3537.23 3264.89 -4775.33 6039831.09 511971.58 MWD+IFR-AK-CAZ-SC 7522.25 92.14 316.71 3590.40 3536.75 3333.47 -4844.26 6039899.51 511902.51 MWD+IFR-AK-CAZ-SC 7618.32 91.95 319.16 3586.97 3533.32 3404.74 -4908.58 6039970.63 511838.03 MWD+IFR-AK-CAZ-SC 7713.21 89.24 319.86 3585.99 3532.34 3476.90 -4970.19 6040042.64 511776.27 MWD+IFR-AK-CAZ-SC 7808.93 90.47 317.71 3586.23 3532.58 3548.90 -5033.25 6040114.49 511713.05 MWD+IFR-AK-CAZ-SC 7902.45 90.47 319.63 3585.46 3531.81 3619.12 -5095.00 6040184.56 511651.15 MWD+IFR-AK-CAZ-SC 7996.99 91.21 322.01 3584.08 3530.43 3692.39 -5154.72 6040257.69 511591.27 MWD+IFR-AK-CAZ-SC 8092.69 91.28 322.07 3582.00 3528.35 3767.82 -5213.57 6040332.98 511532.26 MWD+IFR-AK-CAZ-SC 8189.25 91.28 324.24 3579.84 3526.19 3845.07 -5271.46 6040410.10 511474.20 MWD+IFR-AK-CAZ-SC 8285.20 91.59 325.13 3577.44 3523.79 3923.34 -5326.91 6040488.23 511418.58 MWD+IFR-AK-CAZ-SC 8379.69 90.29 325.27 3575.89 3522.24 4000.92 -5380.82 6040565.68 511364.50 MWD+IFR-AK-CAZ-SC 8471.55 89.30 324.14 3576.21 3522.56 4075.89 -5433.90 6040640.52 511311.26 MWD+IFR-AK-CAZ-SC 8564.45 90.17 323.54 3576.64 3522.99 4150.89 -5488.71 6040715.40 511256.28 MWD+IFR-AK-CAZ-SC 8655.61 87.38 323.50 3578.59 3524.94 4224.17 -5542.89 6040788.54 511201.94 MWD+IFR-AK-CAZ-SC 8758.01 85.41 325.03 3585.03 3531.38 4307.12 -5602.57 6040871.35 511142.08 MWD+IFR-AK-CAZ-SC 8855.27 89.86 325.46 3589.04 3535.39 4386.94 -5657.96 6040951.03 511086.52 MWD+IFR-AK-CAZ-SC 8950.66 88.13 325.39 3590.72 3537.07 4465.47 -5712.08 6041029.43 511032.23 MWD+IFR-AK-CAZ-SC 9046.98 90.78 324.48 3591.63 3537.98 4544.29 -5767.41 6041108.13 510976.73 MWD+IFR-AK-CAZ-SC 9142.25 93.94 323.42 3587.71 3534.06 4621.24 -5823.42 6041184.94 510920.55 MWD+IFR-AK-CAZ-SC 9229.24 92.57 323.70 3582.77 3529.12 4691.11 -5875.00 6041254.69 510868.81 MWD+IFR-AK-CAZ-SC 9323.80 89.24 321.73 3581.28 3527.63 4766.32 -5932.27 6041329.76 510811.38 MWD+IFR-AK-CAZ-SC 9417.56 88.56 319.81 3583.08 3529.43 4838.93 -5991.55 6041402.23 510751.94 MWD+IFR-AK-CAZ-SC 9514.57 87.45 319.27 3586.45 3532.80 4912.70 -6054.46 6041475.84 510688.87 MWD+IFR-AK-CAZ-SC 9612.62 85.46 319.07 3592.52 3538.87 4986.74 -6118.44 6041549.74 510624.73 MWD+IFR-AK-CAZ-SC 9707.90 86.71 319.62 3599.02 3545.37 5058.85 -6180.37 6041621.70 510562.64 MWD+IFR-AK-CAZ-SC 9747.00 86.71 319.62 3601.27 3547.62 5088.59 -6205.66 6041651.38 510537.29 PROJECTED to TD • • Halliburton Company Survey Report Company: Kerr McGee Date: 2/16/2007 Time: 16:14:27 Page: I Field: OLIKTOK POINT Co•ordinate(NE) Reference: Welh Oliktok Point I-2, True North Site: OLIKTOK POINT Vertical (TVD) Reference: Oliktok Point I-2 PBi: 53.6 Well: Oliktok Point I-2 Section (VS) Reference: Well (O.OON,O.OOE,312.10Azi) Wellpath: Oliktok Point I-2 Survey CalcWation Method: Minimum Curvature Dbe `Oracle Survey MD Intl Azim TVD Sys TVD N/S E/W MapN MapE Tool ft deg deg ft ft ft fi ft ft 41.45 0.00 0.00 41.45 -12.20 0.00 0.00 6036577.31 516753.79 TIE LINE 96.00 0.07 344.94 96.00 42.35 0.03 -0.01 6036577.34 516753,79 CB-GYRO-SS 113.00 0.34 349.14 113.00 59.35 0.09 -0.02 6036577.40 516753.77 CB-GYRO-SS 202.00 1.02 316.00 201.99 148.34 0.92 -0.62 6036578.23 516753.17 CB-GYRO-SS 326.00 3.81 311.06 325.87 272.22 4.42 -4.49 6036581.72 516749.29 CB-GYRO-SS 418.47 5.83 312.90 418.01 364.36 9.64 -10.25 6036586.92 516743.52 MWD+IFR-AK-CAZ-SC 514.01 7.25 310.31 512.93 459.28 16.84 -18.40 6036594.10 516735.35 MWD+IFR-AK-CAZ-SC 604.55 11.31 304.55 602.26 548.61 25.58 -30.08 6036602.81 516723.66 MWD+IFR-AK-CAZ-SC 696.96 15.16 300.45 692.20 638.55 36.84 -47.97 6036614.04 516705.75 MWD+IFR-AK-CAZ-SC 787.18 17.41 300.32 778.80 725.15 49.64 -69.79 6036626.78 516683.90 MWD+IFR-AK-CAZ-SC 868.57 18.19 300.53 856.29 802.64 62.24 -91.24 fi036639.33 516662.42 MWD+IFR-AK-CAZ-SC 957.08 21.68 299.86 939.49 885.84 77.40 -117.33 6036654.43 516636.30 MWD+IFR-AK-CAZ-SC 1049.68 24.71 299.53 1024.59 970.94 95.46 -149.01 6036672.42 516604.58 MWD+IFR-AK-CAZ-SC 1144.90 29.56 298.03 1109.31 1055.66 116.32 -187.08 6036693.19 516566.47 MWD+IFR-AK-CAZ-SC 1238.10 35.22 295.20 1187.98 1134.33 138.58 -231.73 6036715.35 516521.77 MWD+IFR-AK-CAZ-SC 1332.76 37.74 297.84 1264.09 1210.44 163.74 -282.06 6036740.39 516471.40 MWD+IFR-AK-CAZ-SC 1429.59 40.33 300.76 1339.30 1285.65 193.61 -335.20 6036770.14 516418.19 MWD+IFR-AK-CAZ-SC 1523.70 41.02 300.90 1410.68 1357.03 225.05 -387.87 6036801.46 516365.46 MWD+IFR-AK-CAZ-SC 1597.12 41.51 301.26 1465.87 1412.22 250.05 -429.34 6036826.36 516323.93 MWD+IFR-AK-CAZ-SC 1713.22 38.52 301.21 1554.77 1501.12 288.75 -493.16 6036864.92 516260.03 MWD+IFR-AK-CAZ-SG 1807.39 41.56 300.15 1626.86 1573.21 319.65 -545.27 6036895.69 516207.86 MWD+IFR-AK-CAZ-SC 1900.47 44.50 299.51 x1694.90 1641.25 351.23 -600.37 6036927.14 516152.70 MWD+IFR-AK-CAZ-SC 1995.48 49.22 298.79 1759.84 1706.19 384.97 -660.90 6036960.75 516092.09 MWD+IFR-AK-CAZ-SC 2090.77 59.40 299.02 1815.36 1761.71 422.34 -728.56 6036997.96 516024.35 MWD+IFR-AK-CAZ-SC 2180.81 64.25 300.78 1857.87 1804.22 461.92 -797.33 6037037.38 515955.50 MWD+IFR-AK-CAZ-SC 2280.81 63.37 302.15 1902.00 1848.35 508.75 -873.87 6037084.03 515878.87 MWD+IFR-AK-CAZ-SC 2375.52 64.55 302.74 1943.58 1889.93 554.40 -945.68 6037129.52 515806.96 MWD+IFR-AK-CAZ-SC Field: OLIKTOK POINT Map System:US State Plane Coordinate System 1927 Map Zone: Alaska, Zone 4 Geo Datum: NAD27 (Clarke 1866) Coordinate System: Well Centre Sys Datum: Mean Sea Level Geomagnetic Model: bggm2006 Well: Oliktok Point I-2 Slot Name: Well Position: +N/-S -3.83 ft Northing: 6036577.31 ft Latitude: 70 30 40.023 N +E/-W -7.07 ft Easting : 516753.79 ft Longitude: 149 51 46.449 W Position Uncertainty: 0.00 ft Wellpath: Oliktok Point I-2 Drilled From: Oliktok Point I-2 P62 500292332600 Tie-on Depth: 9046.98 ft Current Datum: Oliktok Point I-2 PBi : Height 53.65 ft Above System Datum: Mean Sea Level Magnetic Data: 1 /1 /2007 Declination: 23.60 deg Field Strength: 57618 nT Mag Dip Angle: 80.94 deg Vertical Section: Depth From (TVD) +N/-S +E/-W Direction ft ft ft deg 41.45 0.00 0.00 312.10 Survey Program for Definitive Wellpath Date: 2/16/2007 Validated: No Version: 1 Actual From To Survey Toolcode Tool Name ft ft 96.00 326.00 Oliktok Point --2 PBi Gyro (96 CB-GYRO-SS Camera based gyro single shot 418.47 4124.95 Oliktok Point I-2 P61 IIFR+MS MWD+IFR-AK-CAZ-SC MWD+IFR AK CAZ SCC 4229.11 9046.98 Oliktok Point I-2 P62 IIFR+MS MWD+IFR-AK-CAZ-SC MWD+IFR AK CAZ SCC 9125.00 12673.90 Oliktok Point I-2 IIFR+MS+Sag MWD+IFR-AK-CAZ-SCMWD+IFR AK CAZ SCC Halliburton Company Survey Report Company: Kerr McGee Field: OLIKTOK POINT Date: 2/16/2007 Time: 16:14:27 Page: 2 Co-ordinate(NE) Reference: Well: Oliktok Point I-2, True North Site: OL IKTOK POINT Vertical (TVD) Reference: Oli ktok Point 1-2 PB 1: 53.6 Well: Oliktok Point I-2 Section (VS) Reference: Well (O.OON,O.OOE,312.10Azi) Wellpathc Oliktok Point I-2 Survey Calculation Method: Minimum Curvature Db: Oracle Survey MD Incl Azim TVD Sys TVD N/S E/W MapN MapE Tool ft deg. deg ft ft ft ft ft ft 2469.70 64.95 303.06 1983.76 1930.11 600.67 -1017.20 6037175.62 515735.35 MWD+IFR-AK-CAZ-SC 2510.28 64.51 303.72 2001.08 1947.43 620.87 -1047.84 6037195.75 515704.66 MWD+IFR-AK-CAZ-SC 2612.88 64.28 303.92 2045.42 1991.77 672.36 -1124.71 6037247.06 515627.69 MWD+IFR-AK-CAZ-SC 2706.83 60.97 303.45 2088.61 2034.96 718.63 -1194.11 6037293.17 515558.18 MWD+IFR-AK-CAZ-SC 2801.57 61.61 303.76 2134.12 2080.47 764.62 -1263.32 6037339.00 515488.88 MWD+IFR-AK-CAZ-SC 2896.10 62.22 304.39 2178.63 2124.98 811.35 -1332.40 6037385.57 515419.70 MWD+IFR-AK-CAZ-SC 2990.18 61.72 304.75 2222.84 2169.19 858.47 -1400.78 6037432.53 515351.22 MWD+IFR-AK-CAZ-SC 3085.07 63.44 304.83 2266.53 2212.88 906.53 -1469.95 6037480.43 515281.95 MWD+IFR-AK-CAZ-SC 3178.93 65.83 305.28 2306.74 . 2253.09 955.24 -1539.37 6037528.98 515212.43 MWD+IFR-AK-CAZ-SC 3273.56 67.83 306.00 2343.97 2290.32 1005.93 -1610.06 6037579.50 515141.62 MWD+IFR-AK-CAZ-SC 3369.65 65.03 306.03 2382.39 2328.74 1057.71 -1681.30 6037631.12 515070.28 MWD+IFR-AK-CAZ-SC 3463.61 63.39 306.11 2423.27 2369.62 1107.52 -1749.68 6037680.77 515001.80 MWD+IFR-AK-CAZ-SC 3558.17 64.93 305.17 2464.48 2410.83 1157.11 -1818.84 6037730.19 514932.53 MWD+IFR-AK-CAZ-SC 3654.05 64.08 305.05 2505.75 2452.10 1206.88 -1889.64 6037779.80 514861.63 MWD+IFR-AK-CAZ-SC 3748.20 63.70 304.87 2547.19 2493.54 1255.32 -1958.92 6037828.08 514792.24 MWD+IFR-AK-CAZ-SC 3842.28 64.16 305.16 2588.53 2534.88 1303.81 -2028.14 6037876.41 514722.92 MWD+IFR-AK-CAZ-SC 3936.91 63.70 303.59 2630.12 2576.47 1351.81 -2098.29 6037924.24 514652.67 MWD+IFR-AK-CAZ-SC 4031.54 63.17 302.14 2672.44 2618.79 1397.74 -2169.38 6037970.01 514581.49 MWD+IFR-AK-CAZ-SC 4124.95 62.30 302.17 2715.23 2661.58 1441.93 -2239.67 6038014.03 514511.10 MWD+IFR-AK-CAZ-SC 4229.11 61.50 301.90 2764.29 2710.64 1490.67 -2317.56 6038062.59 514433.11 MWD+IFR-AK-CAZ-SC 4291.63 61.46 302.25 2794.15 2740.50 1519.84 -2364.11 6038091.66 514386.50 MWD+IFR-AK-CAZ-SC 4328.44 61.41 302.57 2811.75 2758.10 1537.16 -2391.40 6038108.92 514359.17 MWD+IFR-AK-CAZ-SC 4398.49 63.64 302.87 2844.06 2790.41 1570.76 -2443.69 6038142.39 514306.81 MWD+IFR-AK-CAZ-SC 4424.86 64.75 303.01 2855.54 2801.89 1583.67 -2463.61 6038155.25 514286.86 MWD+IFR-AK-CAZ-SC 4477.49 65.65 302.66 2877.62 2823.97 1609.57 -2503.75 6038181.07 514246.67 MWD+IFR-AK-CAZ-SC 4516.91 66.07 302.86 2893.74 2840.09 1629.04 -2534.01 6038200.46 514216.37 MWD+IFR-AK-CAZ-SC 4611.49 64.47 303.82 2933.30 2879.65 1676.24 -2605.77 6038247.50 514144.51 MWD+IFR-AK-CAZ-SC 4706.88 64.38 303.26 2974.48 2920.83 1723.79 -2677.49 6038294.88 514072.69 MWD+IFR-AK-CAZ-SC 4800.70 65.46 304.02 3014.25 2960.60 1770.86 -2748.23 6038341.79 514001.85 MWD+IFR-AK-CAZ-SC 4895.84 65.44 303.41 3053.78 3000.13 1818.89 -2820.21 6038389.65 513929.77 MWD+IFR-AK-CAZ-SC 4990.88 67.99 303.62 3091.35 3037.70 1867.09 -2892.99 6038437.68 513856.89 MWD+IFR-AK-CAZ-SC 5086.65 67.65 303.36 3127.50 3073.85 1916.03 -2966.95 6038486.45 513782.82 MWD+IFR-AK-CAZ-SC 5181.83 65.07 303.00 3165.67 3112.02 1963.75 -3039.92 6038533.99 513709.76 MWD+IFR-AK-CAZ-SC 5276.30 65.23 304.07 3205.37 3151.72 2011.10 -3111.37 6038581.18 513638.20 MWD+IFR-AK-CAZ-SC 5371.72 68.52 304.87 3242.84 3189.19 2060.77 -3183.70 6038630.68 513565.77 MWD+IFR-AK-CAZ-SC 5466.73 68.24 305.38 3277.85 3224.20 2111.59 -3255.94 6038681.33 513493.42 MWD+IFR-AK-CAZ-SC 5560.13 67.61 304.91 3312.95 3259.30 2161.41 -3326.72 6038730.99 513422.54 MWD+IFR-AK-CAZ-SC 5654.13 66.47 305.26 3349.61 3295.96 2211.16 -3397.54 6038780.57 513351.61 MWD+IFR-AK-CAZ-SC 5749.24 66.91 305.67 3387.25 3333.60 2261.84 -3468.68 6038831.09 513280.36 MWD+IFR-AK-CAZ-SC 5843.47 71.64 305.53 3420.59 3366.94 2313.13 -3540.33 6038882.21 513208.61 MWD+IFR-AK-CAZ-SC 5937.92 71.07 305.38 3450.78 3397.13 2365.04 -3613.22 6038933.95 513135.61 MWD+IFR-AK-CAZ-SC 6032.85 72.30 304.35 3480.61 3426.96 2416.55 -3687.17 6038985.29 513061.55 MWD+IFR-AK-CAZ-SC 6127.29 74.48 303.75 3507.61 3453.96 2467.22 -3762.15 6039035.78 512986.47 MWD+IFR-AK-CAZ-SC 6221.47 78.65 304.21 3529.49 3475.84 2518.40 -3838.09 6039086.80 512910.42 MWD+IFR-AK-CAZ-SC 6315.11 82.15 305.04 3545.10 3491.45 2570.86 -3914.05 6039139.08 512834.35 MWD+IFR-AK-CAZ-SC 6411.17 85.51 305.80 3555.42 3501.77 2626.20 -3991.87 6039194.24 512756.41 MWD+IFR-AK-CAZ-SC 6504.67 85.22 305.09 3562.98 3509.33 2680.25 -4067.79 6039248.11 512680.38 MWD+IFR-AK-CAZ-SC 6598.00 85.88 305.29 3570.22 3516.57 2733.87 -4143.83 6039301.55 512604.22 MWD+IFR-AK-CAZ-SC 6667.85 84.16 304.68 3576.28 3522.63 2773.77 -4200.84 6039341.32 512547.13 MWD+IFR-AK-CAZ-SC 6764.60 86.71 308.02 3583.99 3530.34 2830.92 -4278.50 6039398.29 512469.35 MWD+IFR-AK-CAZ-SC 6859.91 89.80 310.18 3586.89 3533.24 2891.00 -4352.41 6039458.19 512395.31 MWD+IFR-AK-CAZ-SC 6952.42 93.82 313.03 3583.97 3530.32 2952.37 -4421.53 6039519.40 512326.06 MWD+IFR-AK-CAZ-SC 7046.28 90.72 314.24 3580.25 3526.60 3017.08 -4489.40 6039583.95 512258.05 MWD+IFR-AK-CAZ-SC Halliburton Company Survey Report Company: Kerr McGee Dater 2/f6/2007 Time: 16:14:27 Page: 3 Field: OLI KTOK POINT Co-ordinate(NE) Reference: Well: Oliktok Point I -2, True North Site: OLI KTOK POINT Vertical (TVD) References Oli ktok Point I-2 PB i: 53.6 Well: Oliktok Point 1-2 Section (VS) Reference: Well (O.OON,O.OOE,312.10Azi) Wellpath: Oliktok Point I-2 Survey Calculation Method:. Minimum Curvature Db: Oracle Survey MD Incl Azim TVD Sys TVD N/S E/W MapN MapE Toole ft deg deg ft ft ft ft ft ft 7143.76 88.68 311.31 3580.76 3527.11 3083.27 -4560.94 6039649.97 512186.37 MWD+IFR-AK-CAZ-SC 7237.95 88.06 309.10 3583.44 3529.79 3144.04 -4632.84 6039710.58 512114.33 MWD+IFR-AK-CAZ-SC 7335.17 87.20 309.63 3587.46 3533.81 3205.65 -4707.94 6039772.01 512039.11 MWD+IFR-AK-CAZ-SC 7424.98 88.43 313.00 3590.88 3537.23 3264.89 -4775.33 6039831.09 511971.58 MWD+IFR-AK-CAZ-SC 7522.25 92.14 316.71 3590.40 3536.75 3333.47 -4844.26 6039899.51 511902.51 MWD+IFR-AK-CAZ-SC 7618.32 91.95 319.16 3586.97 3533.32 3404.74 -4908.58 6039970.63 511838.03 MWD+IFR-AK-CAZ-SC 7713.21 89.24 319.86 3585.99 3532.34 3476.90 -4970.19 6040042.64 511776.27 MWD+IFR-AK-CAZ-SC 7808.93 90.47 317.71 3586.23 3532.58 3548.90 -5033.25 6040114.49 511713.05 MWD+IFR-AK-CAZ-SC 7902.45 90.47 319.63 3585.46 3531.81 3619.12 -5095.00 6040184.56 511651.15 MWD+IFR-AK-CAZ-SC 7996.99 91.21 322.01 3584.08 3530.43 3692.39 -5154.72 6040257.69 511591.27 MWD+IFR-AK-CAZ-SC 8092.69 91.28 322.07 3582.00 3528.35 3767.82 -5213.57 6040332.98 511532.26 MWD+IFR-AK-CAZ-SC 8189.25 91.28 324.24 3579.84 3526.19 3845.07 -5271.46 6040410.10 511474.20 MWD+tFR-AK-CAZ-SC 8285.20 91.59 325.13 3577.44 3523.79 3923.34 -5326.91 6040488.23 511418.58 MWD+IFR-AK-CAZ-SC 8379.69 90.29 325.27 3575.89 3522.24 4000.92 -5380.82 6040565.68 511364.50 MWD+IFR-AK-CAZ-SC 8471.55 89.30 324.14 3576.21 3522.56 4075.89 -5433.90 6040640.52 511311.26 MWD+IFR-AK-CAZ-SC 8564.45 90.17 323.54 3576.64 3522.99 4150.89 -5488.71 6040715.40 511256.28 MWD+IFR-AK-CAZ-SC 8655.61 87.38 323.50 3578.59 3524.94 4224.17 -5542.89 6040788.54 511201.94 MWD+IFR-AK-CAZ-SC 8758.01 85.41 325.03 3585.03 3531.38 4307.12 -5602.57 6040871.35 511142.08 MWD+IFR-AK-CAZ-SC 8855.27 89.86 325.46 3589.04 3535.39 4386.94 -5657.96 6040951.03 511086.52 MWD+IFR-AK-CAZ-SC 8950.66 88.13 325.39 3590.72 3537.07 4465.47 -5712.08 6041029.43 511032.23 MWD+IFR-AK-CAZ-SC 9046.98 90.78 324.48 3591.63 3537.98 4544.29 -5767.41 6041108.13 510976.73 MWD+IFR-AK-CAZ-SC 9125.00 93.37 323.61 3588.81 3535.16 4607.40 -5813.18 6041171.12 510930.81 MWD+IFR-AK-CAZ-SC 9142.89 90.74 324.06 3588.17 3534.52 4621.83 -5823.73 6041185.53 510920.23 MWD+IFR-AK-CAZ-SC 9238.33 88.13 321.46 3589.11 3535.46 4697.80 -5881.48 6041261.36 510862.32 MWD+IFR-AK-CAZ-SC 9334.43 86.27 320.15 3593.80 3540.15 4772.18 -5942.13 6041335.60 510801.51 MWD+IFR-AK-CAZ-SC 9430.13 83.74 319.74 3602.13 3548.48 4845.15 -6003.48 6041408.42 510740.00 MWD+IFR-AK-CAZ-SC 9521.58 87.57 319.26 3609.06 3555.41 4914.47 -6062.69 6041477.60 510680.64 MWD+IFR-AK-CAZ-SC 9615.24 88.93 319.73 3611.92 3558.27 4985.65 -6123.49 6041548.64 510619.69 MWD+IFR-AK-CAZ-SC 9709.91 90.17 318.63 3612.67 3559.02 5057.29 -6185.37 6041620.13 510557.65 MWD+IFR-AK-CAZ-SC 9804.42 90.10 318.49 3612.44 3558.79 5128.14 -6247.92 6041690.83 510494.95 MWD+IFR-AK-CAZ-SC 9898.86 90.16 319.18 3612.23 3558.58 5199.24 -6310.08 6041761.78 510432.63 MWD+IFR-AK-CAZ-SC 9993.69 92.14 319.95 3610.33 3556.68 5271.40 -6371.57 6041833.79 510370.98 MWD+IFR-AK-CAZ-SC 10089.57 90.78 321.22 3607.88 3554.23 5345.44 -6432.43 6041907.69 510309.97 MWD+IFR-AK-CAZ-SC 10185.94 89.86 324.41 3607.34 3553.69 5422.21 -6490.66 6041984.32 510251.57 MWD+IFR-AK-CAZ-SC 10281.25 88.74 324.05 3608.51 3554.86 5499.53 -6546.37 6042061.51 510195.69 MWD+IFR-AK-CAZ-SC 10374.96 90.04 320.84 3609.51 3555.86 5573.81 -6603.48 6042135.65 510138.42 MWD+IFR-AK-CAZ-SC 10471.74 88.81 320.31 3610.48 3556.83 5648.56 -6664.93 6042210.26 510076.80 MWD+IFR-AK-CAZ-SC 10566.6f 88.99 317.47 3612.30 3558.65 5720.02 -6727.29 6042281.57 510014.29 MWD+IFR-AK-CAZ-SC 10662.29 86.27 316.27 3616.26 3562.61 5789.78 -6792.64 6042351.17 509948.79 MWD+IFR-AK-CAZ-SC 10753.48 89.61 314.35 3619.53 3565.88 5854.55 -6856.72 6042415.80 509884.57 MWD+IFR-AK-CAZ-SC 10842.95 94.43 314.25 3616.38 3562.73 5916.98 -6920.69 6042478.08 509820.46 MWD+IFR-AK-CAZ-SC 10943.80 93.99 317.08 3608.98 3555.33 5988.92 -6990.98 6042549.84 509750.03 MWD+IFR-AK-CAZ-SC 11038.69 91.03 318.88 3604.82 3551.17 6059.33 -7054.42 6042620.11 509686.43 MWD+IFR-AK-CAZ-SC 11136.87 89.86 320.97 3604.06 3550.41 6134.45 -7117.62 6042695.08 509623.Ofi MWD+IFR-AK-CAZ-SC 11229.58 90.29 321.55 3603.94 3550.29 6206.77 -7175.64 6042767.25 509564.89 MWD+IFR-AK-CAZ-SC 11321.78 90.10 320.96 3603.62 3549.97 6278.68 -7233.34 6042839.03 509507.03 MWD+IFR-AK-CAZ-SC 11414.85 90.72 320.44 3602.96 3549.31 6350.70 -7292.29 6042910.90 509447.93 MWD+IFR-AK-CAZ-SC 11508.54 91.27 317.72 8601.33 3547.68 6421.47 -7353.64 6042981.54 509386.42 MWD+IFR-AK-CAZ-SC 11592.96 91.65 318.61 3599.18 3545.53 6484.35 -7409.93 6043044.28 509330.00 MWD+IFR-AK-CAZ-SC 11693.44 90.23 320.72 3597.53 3543.88 6560.93 -7474.95 6043120.70 509264.81 MWD+IFR-AK-CAZ-SC 11792.19 89.49 322.07 3597.77 3544.12 6638.09 -7536.56 6043197.72 509203.03 MWD+IFR-AK-CAZ-SC 11881.94 89.05 322.21 3598.91 3545.26 6708.95 -7591.64 6043268.44 509147.80 MWD+IFR-AK-CAZ-SC • Halliburton Company Survey Report • Company: Kerr McGee Field: OLIKTOK POINT Date: 2/i 6/2007 Time: 16:1427 Page: 4 Co-ordinate(NE) Reference: Well: Oliktok Point I-2, True North Site: OLIKTOK POINT Vertical (TVD) Reference: Oliktok Point I-2 PB i :53.6 We1L• Oliktok Point I-2 Section (VS) Reference: W ell (O.OON,O.OOE,312.10Azi) Wellpath: Oliktok Point I-2 Survey Calculation Method: Mi nimum Curvature Dh: Oracle. Survey MD Incl Azim TVD Sys TVD N/S E/W MapN MapE Tool ft deg. deg ft ft ft ft ft ft 11983.44 90.16 322.11 3599.61 3545.96 6789.10 -7653.91 6043348.45 509085.36 MWD+IFR-AK-CAZ-SC 12078.32 89.92 321.45 3599.55 3545.90 6863.64 -7712.61 6043422.85 509026.50 MWD+IFR-AK-CAZ-SC 12172.82 90.29 319.69 3599.37 3545.72 6936.63 -7772.62 6043495.70 508966.32 MWD+IFR-AK-CAZ-SC 12267.75 89.73 318.43 3599.36 3545.71 7008.34 -7834.83 6043567.26 508903.96 MWD+IFR-AK-CAZ-SC 12364.31 90.10 318.12 3599.50 3545.85 7080.41 -7899.09 6043639.17 508839.54 MWD+IFR-AK-CAZ-SC 12459.83 89.61 318.37 3599.74 3546.09 7151.66 -7962.70 6043710.28 508775.77 MWD+IFR-AK-CAZ-SC 12556.39 89.98 319.02 3600.09 3546.44 7224.20 -8026.44 6043782.66 508711.88 MWD+IFR-AK-CAZ-SC 12673.90 90.41 320.85 3599.69 3546.04 7314.13 -8102.07 6043872.41 508636.05 MWD+IFR-AK-CAZ-SC 12711.00 90.41 320.85 3599.42 ~ 3545.77 7342.90 -8125.49 6043901.12 - 508612.57 PROJECTED to TD } -, = -rte • US ALASKA Daily Drilling Report Well: OLIKTOK POINT I - 2 Report No.: -2 Report Date: 1/2/2007 Project: NORTH SLOPE Site: OLIKTOK POINT Rig Name /No.: NABORS 245- E/245 -E Event: DRILLING Start Date: 12/6/2006 AFE No.: 14017001 Currency: Active Datum: KB ©52.0ft (KELLY BUSHING - NABORS 245 -E) UWI: OLIKTOK POINT I - 2 WELL INFO API No.: (Block: (Supervisor: Gary Goerlich Engineer: Walter Quay DEPTH DAYS MD: O ft TVD: O ft Progress: O ft Avg ROP: 0.0 ft/hr Rotating Hours: Cum Rot Hrs: 0.00 hr DFS: Est Days: 32.00 days MD Auth: 12,854.0 ft Last Casing: STATUS Current Status: Continuing R/U operations. 24 Hr Summary: R/D and moved rig. Spotted over conductor. 24 Hr Forecast: Finish R/U and spud OPI -2. COSTS Daily Cost: 130,577 $ I Authorized Cost: 21,979,000 $ I Cumulative Total: 6,234,180 $ I Expenditure: 28% OPERATION SUMMARY From To Dur. Phase Code Subco Time MD From MD To Operation (hr) de2 Code (ft) ft 0:00 0:00 24.00 MIRU 01 P 0 0 R /D. M/U diverter spool and Hydrill. Move to OPI -2 and spot. Had to re -cut cellar box, would not fit over OPI -1 tree. Set cellar box down. Moved and set ballmill. Continue R/U OPI -2. HOLE SECTIONS Section Name Section Effective ID MD (ft) TVD (ft) Hole Section Start Hole Section End Type Hole ( ") Top Base Top Base Date/Time Date/Time Diameter („) MUD Daily Mud: 0 $ 1 Cum Mud Cost: $ Mud Desc Density Viscosity Date/Time MD PV YP CI- Ca+ pH Pm Pf Mf (ppg) (s /qt) Check (cp) (Ibf /100ft (ppm) (ppm) (cc) (cc) (ft) PUMP /HYDRAULICS I No. Make /Model Stroke Liner Size Efficiency Pressure SPM Output Kill SPM /Pressure /Depth (") ( %) (psi) (spm) (gpm) _ (spm /psi /ft) ANCHOR TENSION 1 2 3 4 5 6 7 8 9 10 11 12 Tension (kip) Direction ( °) SURVEYS MD Inc Azi TVD N/S E/W V. Sec DLeg Short Name (ft) ( °) ( °) (ft) (ft) (ft) (ft) ( °/100ft) 1/2/2007 1:20:53AM Page 1 of 3 • • US ALASKA Daily Drilling Report Well: OLIKTOK POINT I - 2 Report No.: -2 1 Report Date: 1/2/2007 Project: NORTH SLOPE Site: OLIKTOK POINT Rig Name /No.: NABORS 245- E/245 -E Event: DRILLING Start Date: 12/6/2006 AFE No.: 14017001 Currency: Active Datum: KB @52.0ft (KELLY BUSHING - NABORS 245 -E) UWI: OLIKTOK POINT I - 2 MUD SYSTEM Gas Volumes Losses Avg Conn Gas (%): Total String Vol (bbl): 0.0 Surface Total (bbl) : Max Connection Gas ( %): Total Annular Vol (bbl): 0.0 Subsurface Total (bbl) : Avg Trip Gas ( %): Total Pit Vol (bbl): 0.0 Max Trip Gas ( %): Lines (bbl): 0.0 Avg Background Gas ( %): Max Background Gas ( %): Total System Vol (bbl): 0.0 Total (bbl): 0.0 MUD PRODUCTS Product Units l Used Day Cost ($) I Quantity End Baroid Chemicals $$$$ 1.00 0.00 -1.00 SAFETY Status DSLTI: DSLTA: STOP Cards: Inspections /Drills Drill Type: Last Drill: Last Fire /Boat Drill: Last Evacuation Drill: Last Weekly Rig Check: Daily Inspection Done: Last Safety Inspection: Last Safety Meeting: Last Csg Press Test: Last Csg Press: Last Pit Drill: Last Diverter Drill: Test COM.: Ton Miles: Last H2S Drill: Last Trip Drill: BOP Pressure Tests Last BOP Pressure Test: Next Test Due: Last BOP Function Test: Last BOP Drill: Standpipe Manifold: Kelly Hose: Diverter Pressure: Annular Press: Upper Rams: Lower Rams: Choke Line: Choke Manifold: Kill Line: PERSONNEL Total No. of People: 66 Company No. People Company No. People NABORS - Rig Hands 32 PRA - Geologist Sperry Sun - DDs, MWD /LWD, Loggers 7 BAROID - Mud Engineers 2 ACS - Alaska Clean Seas 1 PEAK - Truck Drivers 9 Remote Medical - Medic 1 AES - Comp Support, Expediter, Bear Watch 3 DUS - Cooks, Housekeeping, Security 8 KMG - Company Men & HSE 3 MATERIALS Product Name Weight/Vol Per Usage Quantity End Product Name Weight /Vol Per Usage Quantity End Unit (kip) Unit (kip) DIESEL, Rig Gallons 9,660.00 WATER, DRILLING, I BBLS 300.00 DIESEL, Camp Gallons 420.00 4,557.00 WATER, POTABLE, 4 Gallons 3,286.00 7,068.00 SUPPORT CRAFT Name 1 Arrival Comments I Arrival Date 'Departure Date 1/2/2007 1:20:53AM Page 2 of 3 • • US ALASKA - Po Daily Drilling Report Well: OLIKTOK POINT I - 2 Report No.: -2 Report Date: 1/2/2007 Project: NORTH SLOPE Site: OLIKTOK POINT Rig Name /No.: NABORS 245- E/245 -E Event: DRILLING Start Date: 12/6/2006 1 AFE No.: 14017001 Currency: Active Datum: KB @52.0ft (KELLY BUSHING - NABORS 245 -E) UWI: OLIKTOK POINT I - 2 WEATHER Time: 23:30 I Weather: -44, WC -70, COLCIComments: Daily High /Low Temp: / (Visibility: 6(mi) Ceiling: 110m Wind Spd: 15.0(knots) (Gust Spd: 20.0(knots) CURRENTS MAX/SI WAVE SWELL VESSEL Speed Dir Ht. Dir Period Ht. Heave Pitch Roll Offset Heading (knots) I ( (ft) ( °) (sec) (ft) (ft) ( ( (ft) ( / / / INPUT FLUID Oil: 0.0 (bbl) H2O: 0.0 (bbl) Other: 0.0 (bbl) Cum Oil: Cum H2O: Cum Other: FLUID RECOVERED Oil: -5.0 (bbl) H2O: -5.0 (bbl) Other: -5.0 (bbl) Cum Oil: 0.0 (bbl) Cum H2O: 0.0 (bbl) Cum Other: 0.0 (bbl) a� FLUID LEFT TO RECOVER Oil: 5.0 (bbl) I H2O: I 5.0 (bbl)( Other: I 5.0 (bbl) Cum Oil: Cum H2O: Cum Other: REMARKS 1/2/2007 1:20:53AM Page 3 of 3 0 • U S ALASKA Daily Drilling Report Well: OLIKTOK POINT I - 2 Report No.: -3 Report Date: 1/3/2007 Project: NORTH SLOPE Site: OLIKTOK POINT Rig Name /No.: NABORS 245- E/245 -E Event: DRILLING Start Date: 12/6/2006 AFE No.: 14017001 Currency: Active Datum: KB @52.0ft (KELLY BUSHING - NABORS 245 -E) UWI: OLIKTOK POINT I - 2 WELL INFO API No.: IBlock: 'Supervisor: Gary Goerlich 'Engineer: Walter Quay DEPTH DAYS MD: O ft TVD: O ft Progress: O ft Avg ROP: 0.0 ft/hr Rotating Hours: Cum Rot Hrs: 0.00 hr DFS: Est Days: 32.00 days MD Auth: 12,854.0 ft Last Casing: STATUS Current Status: N/U diverter line 24 Hr Summary: Worked all day battling against cold weather and resultant frozen pipes, hoses and equipment. 24 Hr Forecast: Finish repairs to frozen equipment and continue with R/U operations. M/U diverter line to knife valve, cover OPI -1 cellar, burm around OPI -2 cellar box, C/O shaker screens, function test all! equip. Spud well. COSTS Daily Cost: 120,614 $ I Authorized Cost: 21,979,000 $ I Cumulative Total: 6,357,803 $ I Expenditure: 29% OPERATION SUMMARY From To Dur. Phase Code Subco Time MD From MD To Operation (hr) de2 Code (ft) (ft) 0:00 12:00 12.00 MIRU 01 P 0 0 R/U Water systems /boilers, Continue R/U and battle against freezing temperatures and resultant frozen pipes, hoses and equipment. See remarks for details. 12:00 0:00 12.00 MIRU 01 P Weld cement return fittings on conductor pipe. R/U diverter. Extreme cold temperatures have hampered progress. Multiple frozen pipes /hoses. HOLE SECTIONS Section Name Section Effective ID MD (ft) TVD (ft) Hole Section Start Hole Section End Type Hole ( ") Top Base Top Base Date/Time Date/Time Diameter (,) MUD I Daily Mud: 21,588 $ 1 Cum Mud Cost: $ Mud Desc Density Viscosity Date/Time MD PV YP Cl- Ca+ pH Pm Pf Mf (ppg) (s /qt) Check (cp) (Ibf /100ft (ppm) (ppm) (cc) (cc) (ft) POLYMER 9.00 78 1/3/2007 0:01 0.0 16 40 51,000 9.00 0.15 0.17 0.80 PUMP /HYDRAULICS No. Make /Model Stroke Liner Size Efficiency l Pressure SPM Output Kill SPM /Pressure /Depth I C) . ( ") ( %) I (psi) (spm) (gpm) (spm /psi /ft) ANCHOR TENSION 1 2 3 4 5 6 7 8 9 10 11 12 Tension (kip) Direction ( °) SURVEYS MD Inc Azi TVD N/S E/W V. Sec DLeg Short Name (ft) ( °) ( °) (ft) (ft) (ft) (ft) ( °/100ft) 1/3/2007 12:59:17AM Page 1 of 3 • US ALASKA o Daily Drilling Report Well: OLIKTOK POINT I - 2 Report No.: -3 Report Date: 1/3/2007 Project: NORTH SLOPE Site: OLIKTOK POINT Rig Name /No.: NABORS 245- E/245 -E Event: DRILLING I Start Date: 12/6/2006 AFE No.: 14017001 Currency: Active Datum: KB @52.0ft (KELLY BUSHING - NABORS 245 -E) UWI: OLIKTOK POINT I - 2 MUD SYSTEM Gas Volumes Losses Avg Conn Gas ( %): Total String Vol (bbl): 0.0 Surface Total (bbl) : Max Connection Gas ( %): Total Annular Vol (bbl): 0.0 Subsurface Total (bbl) : Avg Trip Gas ( %): Total Pit Vol (bbl): 0.0 Max Trip Gas ( %): Lines (bbl): 0.0 Avg Background Gas ( %): Max Background Gas ( %): Total System Vol (bbl): 0.0 Total (bbl): 0.0 MUD PRODUCTS Product - Units Used Day Cost ($) Quantity End Baracor 700 5 GAL 12.00 0.00 4.00 SODIUM bicarbonate SACKS 1.00 0.00 40.00 EZ Mud LBS 6.00 0.00 80.00 Potassium chloride SACKS 414.00 0.00 428.00 DrlI -N -Slide 55 GAL 4.00 0.00 14.00 Barazan D+ SACKS 50.00 0.00 316.00 Baradefoam HP 5 GAL 1.00 0.00 27.00 Potassium hydroxide SACKS 2.00 0.00 35.00 Aldacide G 55 GAL 1.00 0.00 0.00 Baroid Chemicals $$$$ 1.00 21,587.67 -2.00 Barabrine Defoam LBS 1.00 0.00 0.00 SAFETY Status DSLTI: DSLTA: STOP Cards: I Inspections /Drills Drill Type: Last Drill: Last Fire /Boat Drill: Last Evacuation Drill: Last Weekly Rig Check: Daily Inspection Done: Last Safety Inspection: Last Safety Meeting: Last Csg Press Test: Last Csg Press: Last Pit Drill: Last Diverter Drill: Test COM.: Ton Miles: Last H2S Drill: Last Trip Drill: BOP Pressure Tests Last BOP Pressure Test: Next Test Due: Last BOP Function Test: Last BOP Drill: Standpipe Manifold: Kelly Hose: Diverter Pressure: Annular Press: Upper Rams: Lower Rams: Choke Line: Choke Manifold: Kill Line: PERSONNEL Total No. of People: 67 Company No. People Company No. People NABORS - Rig Hands 28 PRA - Geologist QUADCO 1 Sperry Sun - DDs, MWD /LWD, Loggers 9 BAROID - Mud Engineers 2 ACS - Alaska Clean Seas 1 HALLIBURTON 2 PEAK - Truck Drivers 9 Remote Medical - Medic 1 AES - Comp Support, Expediter, Bear Watch 3 DUS - Cooks, Housekeeping, Security 8 KMG - Company Men & HSE 3 MATERIALS 1/3/2007 12:59:17AM Page 2 of 3 . . US ALASKA Daily Drilling Report ». x Well: OLIKTOK POINT I - 2 Report No.: -3 Report Date: 1/3/2007 Project: NORTH SLOPE Site: OLIKTOK POINT Rig Name /No.: NABORS 245- E/245 -E Event: DRILLING Start Date: 12/6/2006 AFE No.: 14017001 Currency: Active Datum: KB ©52.0ft (KELLY BUSHING - NABORS 245 -E) 1 UWI: OLIKTOK POINT I - 2 MATERIALS Product Name Weight/Vol Per Usage Quantity End Product Name Weight/Vol Per Usage Quantity End Unit (kip) Unit (kip) DIESEL, Rig Gallons 9,660.00 WATER, DRILLING, I BBLS 300.00 DIESEL, Camp Gallons 487.00 4,070.00 WATER, POTABLE, 1 Gallons 4,549.00 6,479.00 SUPPORT CRAFT Name I Arrival Comments I Arrival Date (Departure Date WEATHER Time: 23:30 I Weather: -50, WC -82, MCdylComments: Daily High /Low Temp: / (Visibility: 10(mi) Ceiling: 110m Wind Spd: 12.0(knots) (Gust Spd: 15.0(knots) CURRENTS MAX/SIG WAVE SWELL VESSEL Speed Dir Ht. Dir Period Ht. Heave Pitch Roll Offset Heading (knots) ( (ft) ( (sec) (ft) (ft) ( ( (ft) ( / / / INPUT FLUID Oil: 0.0 (bbl) H20: 0.0 (bbl) Other: 0.0 (bbl) Cum Oil: Cum H20: Cum Other: FLUID RECOVERED Oil: -5.0 (bbl) H20: -5.0 (bbl) Other: -5.0 (bbl) Cum Oil: 0.0 (bbl) Cum H20: 0.0 (bbl) Cum Other: 0.0 (bbl) FLUID LEFT TO RECOVER Oil: I 5.0 (bbl) I H20: I 5.0 (bbl) Other: 5.0 (bbl) Cum Oil: Cum H20: Cum Other: REMARKS Remarks by Bruce Simonson - Toolpusher Nabors 245E What Happened: During the rig move to the next well we had some equipment and lines freeze up. The water system on the utility module was left circulating but areas up against closed valves froze and broke, some valves and some pipe nipples etc. affected. Also some mud equipment most notably the centrifuge feed pump and associated piping also froze and broke. What Caused It: 1) Temps dropped to -47 degrees 2) Normally all mud equipment is drained and blown down, but the centrifuge was missed and was frozen. 3) Water system on the utility side has been traditionally left circulating without problem, but due to extreme temps, some doors left open and the boilers having problems, it got cold enough to freeze water lines. 4) Inexperience by many of the hands and my failure to recognize and address the issue of draining and blow down prior to move, especially specific items was the biggest contributing factor to the resulting equipment damage and delay in spudding. 1 1/3/2007 12:59:17AM Page 3 of 3 • • US ALASKA Daily Drilling Report Well: OLIKTOK POINT I - 2 Report No.: 5 1 Report Date: 1/4/2007 Project: NORTH SLOPE Site: OLIKTOK POINT Rig Name /No.: NABORS 245- E/245 -E Event: DRILLING Start Date: 12/31/2006 AFE No.: 14017001 Currency: Active Datum: KB @52.0ft (KELLY BUSHING - NABORS 245 -E) UWI: OLIKTOK POINT I - 2 WELL INFO API No.: IBlock: 'Supervisor: John Salario 'Engineer: Walter Quay DEPTH DAYS MD: O ft TVD: O ft Progress: O ft Avg ROP: 0.0 ft/hr Rotating Hours: Cum Rot Hrs: 0.00 hr DFS: Est Days: 32.00 days MD Auth: 12,854.0 ft Last Casing: STATUS Current Status: Laying down fishing magnet Assy & preparing to PU 13 1/2" bit & motor Assy 24 Hr Summary: Continue to thaw out rig & make repairs to shakers & centrifuge. Nu diverter & test same. Make several attempt to fish lost hammer head while continuing to thaw out pumps & top drive 'BOP. Break circ & wash down to 115' & POOH w/ fish @ report time 24 Hr Forecast: PU BHA & Drill 13 1/2" hole COSTS Daily Cost: 97,453 $ I Authorized Cost: 21,979,000 $ I Cumulative Total: 6,455,256 $ I Expenditure: 29% OPERATION SUMMARY From To Dur. Phase Code Subco Time MD From MD To Operation de2 Code (ft) (ft) 0:00 18:00 18.00 MIRU 08 A U 0 0 Repair frozen centrifuge, readjust & NU diverter line. Thawing and repairing frozen pipes and hoses. Recovering from and dealing with extreme cold. Change out boots on flowline. Make repairs to shakers & rebuild centrifuge. Function test diverter & Koomey system test. 18:00 22:00 4.00 MIRU 19 A T 0 115 MU 11 1/2" fishing magnet & Make several attempts to recover lost #16 hammer. Recovered piece of conductor pipe ( cut out from valve installations ). Still not able to use mud pumps. Thaw out charge pumps & lines & blow down mud pumps. Thaw out top drive IBOP valve & blow out ice blockage 22:00 23:00 1.00 MIRU 04 A P 115 115 Break circulation slowly & check rig for leaks 23:00 0:00 1.00 MIRU 19 A T 115 115 Wash & rotate down to 115' & work magnet. POOH. Recovered hammer head. No accidents or pollution reported HOLE SECTIONS Section Name Section Effective ID MD (ft) TVD (ft) Hole Section Start Hole Section End Type Hole ( ") Top Base Top Base Date/Time Date/Time Diameter (") MUD Daily Mud: 0 $ I Cum Mud Cost: $ Mud Desc Density Viscosity Date/Time MD PV YP Cl- Ca+ pH Pm Pf Mf (ppg) (s /qt) Check (cp) (lbf/100ft (ppm) (ppm) (cc) (cc) (ft) POLYMER 9.00 80 1/3/2007 19:00 80.0 16 38 50,000 0 8.50 0.00 0.05 0.60 POLYMER 9.00 85 1/3/2007 10:31 80.0 16 42 52,000 8.50 0.05 0.65 PUMP /HYDRAULICS No. ke • • ® Stroke Liner Size Efficiency - Pressure SPM Output Kill SPM /Pressure /Depth ( ") ( ") ( %) (psi) (spm) (gpm) (spm /psi /ft) 1/4/2007 1:21:18AM Page 1 of 3 • S US ALASKA Daily Drilling Report Well: OLIKTOK POINT I - 2 Report No.: 5 Report Date: 1/4/2007 Project: NORTH SLOPE Site: OLIKTOK POINT Rig Name /No.: NABORS 245- E/245 -E Event: DRILLING Start Date: 12/31/2006 AFE No.: 14017001 Currency: Active Datum: KB @52.0ft (KELLY BUSHING - NABORS 245 -E) 1 UWI: OLIKTOK POINT I - 2 ANCHOR TENSION 1 2 3 4 5 6 7 8 9 10 11 12 Tension (kip) Direction ( SURVEYS MD Inc Azi TVD N/S I E/W V. Sec DLeg Short Name (ft) (0) ( °) (ft) (ft) I (ft) (ft) (°/100ft) MUD SYSTEM Gas Volumes Losses Avg Conn Gas ( %): Total String Vol (bbl): 0.0 Surface Total (bbl) : Max Connection Gas ( %): Total Annular Vol (bbl): 0.0 Subsurface Total (bbl) : Avg Trip Gas ( %): Total Pit Vol (bbl): 0.0 Max Trip Gas ( %): Lines (bbl): 0.0 Avg Background Gas ( %): Max Background Gas ( %): Total System Vol (bbl): 0.0 Total (bbl): 0.0 MUD PRODUCTS Product I Units I Used I Day Cost ($) ( Quantity End SAFETY Status DSLTI: DSLTA: STOP Cards: Inspections /Drills Drill Type: Last Drill: Last Fire /Boat Drill: Last Evacuation Drill: Last Weekly Rig Check: Daily Inspection Done: Last Safety Inspection: 12/31/2006 Last Safety Meeting: 1/3/2007 Last Csg Press Test: Last Csg Press: Last Pit Drill: Last Diverter Drill: Test COM.: 1/3/2006 Ton Miles: Last H2S Drill: Last Trip Drill: BOP Pressure Tests Last BOP Pressure Test: Next Test Due: Last BOP Function Test: Last BOP Drill: Standpipe Manifold: Kelly Hose: Diverter Pressure: Annular Press: Upper Rams: Lower Rams: Choke Line: Choke Manifold: Kill Line: PERSONNEL Total No. of People: 66 Company No. People Company No. People NABORS - Rig Hands 28 PRA - Geologist Sperry Sun - DDs, MWD /LWD, Loggers 9 BAROID - Mud Engineers 2 ACS - Alaska Clean Seas 1 HALLIBURTON 2 PEAK - Truck Drivers 9 Remote Medical - Medic 1 AES - Comp Support, Expediter, Bear Watch 3 DUS - Cooks, Housekeeping, Security 8 KMG - Company Men & HSE 3 MATERIALS Product Name I Weight/Vol Per I Usage I Quantity End I Product Name I WeightNol Per I Usage I Quantity End Unit (kip) Unit (kip) 1/4/2007 1:21:18AM Page 2 of 3 • • US ALASKA Daily Drilling Report Well: OLIKTOK POINT I - 2 Report No.: 5 Report Date: 1/4/2007 Project: NORTH SLOPE Site: OLIKTOK POINT Rig Name /No.: NABORS 245- E/245 -E Event: DRILLING Start Date: 12/31/2006 AFE No.: 14017001 Currency: Active Datum: KB @52.0ft (KELLY BUSHING - NABORS 245 -E) UWI: OLIKTOK POINT I - 2 MATERIALS Product Name Weight/Vol Per Usage Quantity End Product Name WeightNol Per Usage Quantity End ' Unit,(kip) Unit (kip) DIESEL, Rig Gallons 5,660.00 4,000.00 WATER, DRILLING, I BBLS 300.00 DIESEL, Camp Gallons 389.00 3,681.00 WATER, POTABLE, ( Gallons 2,883.00 6,603.00 ° SUPPORT CRAFT Name Arrival Comments ' Arrival Date Departure Date WEATHER Time: 23:53 I Weather: -38, WC -38, PCdylComments: Daily High /Low Temp: / 'Visibility: 10(mi) Ceiling: 110m Wind Spd: 2.0(knots) 'Gust Spd: 2.0(knots) CURRENTS MAX/SIG WAVE SWELL VESSEL Speed Dir Ht. Dir Period Ht. Heave Pitch Roll Offset Heading (knots) ( °) (ft) (°) (sec) (ft) (ft) ( ( (ft) ( / / / INPUT FLUID Oil: 0.0 (bbl) H2O: 0.0 (bbl) Other: 0.0 (bbl) Cum Oil: Cum H2O: Cum Other: FLUID RECOVERED Oil: -5.0 (bbl) H2O: -5.0 (bbl) Other: -5.0 (bbl) Cum Oil: 0.0 • • Cum H2O: 0.0 (bbl) Cum Other: 0.0 (bbl) FLUID LEFT TO RECOVER Oil I 5.0 (bbl) I H2O: I 5.0 (bbl)) Other: 5.0 (bbl) Cum Oil: Cum H2O: Cum Other: REMARKS 1/4/2007 1:21:18AM Page 3 of 3 • • US ALASKA hF Daily Drilling Report Well: OLIKTOK POINT 1 - 2 Report No.: 6 Report Date: 1/5/2007 Project: NORTH SLOPE Site: OLIKTOK POINT Rig Name /No.: NABORS 245- E/245 -E Event: DRILLING Start Date: 12/31/2006 AFE No.: 14017001 Currency: Active Datum: KB @52.0ft (KELLY BUSHING - NABORS 245 -E) T UWI: OLIKTOK POINT 1 - 2 WELL INFO API No.: IBlock: 'Supervisor: John Salario 'Engineer: Walter Quay DEPTH DAYS MD: 395 ft TVD: 395 ft Progress: 395 ft Avg ROP: 43.9 ft/hr Rotating Hours: 9.00 hr Cum Rot Hrs: 9.00 hr DFS: 1 days Est Days: 32.00 days MD Auth: 12,854.0 ft Last Casing: 16 " STATUS Current Status: Drilling 13 1/2" hole @ 395' MD / TVD 24 Hr Summary: Recover fish & LD tools. PU 13 1/2" bit & motor assy. Repair top drive & Thaw out mud pump cooling system & reprime pumps. Drill / Slide 13 1/2" hole f/ 115' to 218'. POOH. PU MWD tools & BHA. Drilling / sliding f/ 218' to 395' 24 Hr Forecast: Drill 13 1/2" hole to TD @ +/- 2600' Circ hole clean, Wiper trip, Circ. POOH to run 10 3/4" csg COSTS Daily Cost: 130,432 $ I Authorized Cost: 21,979,000 $ I Cumulative Total: 6,584,513 $ I Expenditure: 30% OPERATION SUMMARY From To Dur. Phase Code Subco Time MD From MD To Operation (hr) de2 Code (ft) (ft) 0:00 1:00 1.00 DRLSUR 19 T 0 0 "" Accepted Rig © 0001 hrs "" Recover Hammer head on fishing magnate & LD fishing tools 1:00 3:00 2.00 DRLSUR 06 D P 0 40 Hold prejob safety mtg & PU 13 1/2" Bit ( HTC MX 1 ), 8" motor. Change bend to 1.83 deg. Orient tool & PU 12" IBS & UBHO sub. 3:00 4:00 1.00 DRLSUR 10 D P 40 40 RU Sperry Gyro sheave in derrick 4:00 6:30 2.50 DRLSUR 08 A T 40 115 MU stand 5" HWDP & attempt to function top drive. Rack back stand & repair top drive. MU stand & attempt to circulate. Work on priming pumps & thawing out rod cooling systems. 6:30 11:00 4.50 DRLSUR 02 A P 115 218 "" Spud well @ 0630 hrs** Drilling 13 1/2" hole w/ Sperry Gyro surveys f/ 115' to 218' 11:00 12:30 1.50 DRLSUR 06 D P 218 40 Blow down top drive & pull back to HBHO sub & LD same 12:30 15:00 2.50 DRLSUR 06 D P 90 90 PU sperry MWD tools ( HIVREG) , FS, & UBHO sub 15:00 17:00 2.00 DRLSUR 06 D P 90 90 Download to MWD tool 17:00 18:30 1.50 DRLSUR 06 D P 90 200 PU 3 flex NM Collars & Jars 18:30 19:00 0.50 DRLSUR 10 D P 200 200 Run Sperry Gyro Survey & Orient toolface 19:00 23:30 4.50 DRLSUR 02 B P 218 Drilling & Sliding 13 1/2" hole f/ 218' to 395' MD WOB 10 k 465 gpm 1200 psi 147 rpm on motor Last survey @ 326' 3.81 deg 311.06 Az Pres mud wt 9.4 ppg Rotating hrs 1.96 Sliding hrs. 3.15 23:30 0:00 0.50 DRLSUR 10 B P Attempting to get MWD survey @ report time No accidents or pollution reported HOLE SECTIONS Section Name Section Effective ID MD (ft) TVD (ft) Hole Section Start Hole Section End Type Hole ( ") Top Base Top Base Date/Time DatelTime Diameter (") DRILL SURFACE Open Hole 115 395 1/4/2007 6:30AM HOLE 1/5/2007 2:47:15AM Page 1 of 4 1 • US ALASKA Daily Drilling Report Well: OLIKTOK POINT I - 2 Report No.: 6 Report Date: 1/5/2007 Project: NORTH SLOPE Site: OLIKTOK POINT Rig Name /No.: NABORS 245- E/245 -E Event: DRILLING Start Date: 12/31/2006 AFE No.: 14017001 Currency: Active Datum: KB @52.0ft (KELLY BUSHING - NABORS 245 -E) UWI: OLIKTOK POINT I - 2 MUD Daily Mud: 5807 $ 1 Cum Mud Cost: $ Mud Desc Density Viscosity Date/Time MD PV YP Cl- Ca+ pH Pm Pf Mf (ppg) (s /qt) Check (cp) (Ibf /100ft (ppm) (ppm) (cc) (cc) (ft) POLYMER 9.40 58 1/4/2007 11:00 214.0 14 31 51,000 0 8.50 0.00 0.05 0.80 POLYMER 9.30 57 1/4/2007 19:00 300.0 14 28 50,000 0 9.10 0.35 0.06 1.06 BHA No.# 1 Bit No.: 1 Date/Time In: 1/4/2007 6:30AM Date/Time Out: Purpose: Drill Surface hole to +/- 2600' BHA Length: 1,119.26 (ft) Min ID: 2 ( ") Weight (Above /Below) Jars: 75,662/ (26,263kip) MD Footage String Wt Drag TQ On /Off . (ft) (ft) Up / Down / Rot (kip) (ft -Ibf) (kip) 395 0 0 395 0 0 Assembly Components Component Type # of Length OD ID Connection Weight Grade Pin Serial No. Left Fish Neck Joints (ft) ( ") ( ") OD Name (PPf) Box Or Length OD ( ") Right (ft) ( ") Spiral Mill Tooth Tri -Cone Bit 1 1.00 13 -1/2 9 -5/16 P 6 -5/8 256.31 Pin 5113623 Reg Bent Housing 1 30.70 8 5 B 6 -5/8 104.39 800481 0.75 H -90 Integral Blade Stabilizer 1 3.44 8 -3/32 3 B 6 -5/8 151.52 771476 3.50 H -90 Restrictor Sub 1 25.53 8 2 B 6 -5/8 160.60 124599 2.00 H -90 Float Sub 1 23.19 8 2 B 6 -5/8 160.60 124599 2.00 H -90 Hang -Off Sub 1 2.58 8 2 -7/8 B 6 -5/8 149.18 SSDS251 2.50 H -90 5 Drill Collar 1 31.00 8 2 -3/4 B 6 -5/8 151.06 10800550 5.00 H -90 Drill Collar 1 31.05 8 2 -3/4 B 6 -5/8 151.06 192415 5.00 H -90 Drill Collar 1 31.10 8 2 -3/4 B 6 -5/8 151.06 192420 5.00 H -90 Drilling Jar 1 33.75 7 -3/4 2 -3/4 B 4 -1/2 140.52 17710003 1.61 IF Heavy Weight Drill Pipe 30 905.92 5 3 B 4 -1/2 49.30 IF Bit Details Bit No. Size Manufacturer Model No. Class 'ADC Code Serial No. Jets MD In MD Out I- O- D- L- B -G -O -R (32nd ") (ft) (ft) 1 13 -1/2 Huges MX1 N 117 5113623 1X13, 3X16 0.0 TODAY CUMULATIVE MD (ft) TODAY Current Flow SPP P Bit % @ Bit HHP Hours Footage ROP Hours Footage ROP (kip) RPM Rate (psi) (psi) (hp) (hr) (ft) (ft/hr) Cum Cum Cum (rpm) (gpm) (hr) (ft) (ft/hr) 395 / 50 460.0 1,200.0 350.9 29.2 94.2 5.11 280.0 54.8 5.11 280.0 54.8 PUMP /HYDRAULICS No. Make /Model Stroke Liner Size Efficiency Pressure SPM Output Kill SPM /Pressure /Depth ( ") ( ") ( %) (Psi) (sPm) (gPm) (spm /psi /ft) 02 CONTINENTAL -EMSCO / F -1600 12 6 95.00 1200 55 230.2 03 CONTINENTAL -EMSCO / F -1600 12 6 95.00 1200 55 230.2 1/5/2007 2:47:15AM Page 2 of 4 • • US ALASKA Daily Drilling Report Well: OLIKTOK POINT I - 2 Report No.: 6 Report Date: 1/5/2007 Project: NORTH SLOPE Site: OLIKTOK POINT (Rig Name /No.: NABORS 245- E/245 -E Event: DRILLING Start Date: 12/31/2006 1 AFE No.: 14017001 Currency: Active Datum: KB @52.0ft (KELLY BUSHING - NABORS 245 -E) UWI: OLIKTOK POINT I - 2 ANCHOR TENSION 1 2 3 4 5 6 7 8 9 10 11 12 Tension (kip) Direction ( °) SURVEYS MD Inc Azi TVD N/S E/W V. Sec DLeg Short Name (ft) ( °) ( °) (ft) (ft) (ft) (ft) ( °/100ft) 52.0 0.00 0.00 52.0 0.0 0.0 0.0 0.00 96.0 0.07 344.96 96.0 0.0 0.0 0.0 0.16 113.0 0.34 349.14 113.0 0.1 0.0 0.1 1.59 202.0 1.02 316.00 202.0 0.9 -0.6 0.9 0.85 326.0 3.81 311.06 325.9 4.4 -4.5 4.4 2.25 MUD SYSTEM Gas Volumes Losses Avg Conn Gas ( %): Total String Vol (bbl): 0.0 Surface Total (bbl) : 50.0 Max Connection Gas ( %): Total Annular Vol (bbl): 0.0 Subsurface Total (bbl) : Avg Trip Gas ( %): Total Pit Vol (bbl): 0.0 Max Trip Gas ( %): Lines (bbl): 0.0 Avg Background Gas ( %): Max Background Gas ( %): Total System Vol (bbl): 0.0 Total (bbl): 50.0 MUD PRODUCTS Product " Units Used Day Cost ($) Quantity End Potassium chloride SACKS 332.00 0.00 96.00 X -Cide 206 GAL 3.00 0.00 12.00 Barazan D+ SACKS 3.00 0.00 313.00 Baroid Chemicals $$$$ 1.00 5,807.40 -3.00 SAFETY Status DSLTI: DSLTA: 38.00 (days) STOP Cards: Inspections /Drills Drill Type: Last Drill: Last Fire /Boat Drill: Last Evacuation Drill: Last Weekly Rig Check: Daily Inspection Done: Last Safety Inspection: 12/31/2006 Last Safety Meeting: 1/4/2007 Last Csg Press Test: Last Csg Press: Last Pit Drill: Last Diverter Drill: Test COM.: 1/4/2006 Ton Miles: Last H2S Drill: Last Trip Drill: BOP Pressure Tests Last BOP Pressure Test: Next Test Due: Last BOP Function Test: Last BOP Drill: Standpipe Manifold: Kelly Hose: Diverter Pressure: Annular Press: Upper Rams: Lower Rams: Choke Line: Choke Manifold: Kill Line: 1/5/2007 2:47:15AM Page 3 of 4 • • US ALASKA Daily Drilling Report Well: OLIKTOK POINT 1 - 2 Report No.: 6 1 Report Date: 1/5/2007 Project: NORTH SLOPE Site: OLIKTOK POINT Rig Name /No.: NABORS 245- E/245 -E Event: DRILLING Start Date: 12/31/2006 AFE No.: 14017001 Currency: Active Datum: KB @52.0ft (KELLY BUSHING - NABORS 245 -E) UWI: OLIKTOK POINT I - 2 PERSONNEL Total No. of People: 69 Company No. People Company No. People NABORS - Rig Hands 30 PRA - Geologist 1 Sperry Sun - DDs, MWD /LWD, Loggers 9 BAROID - Mud Engineers 2 ACS - Alaska Clean Seas 1 HALLIBURTON 1 PEAK - Truck Drivers 9 Remote Medical - Medic 1 AES - Comp Support, Expediter, Bear Watch 4 DUS - Cooks, Housekeeping, Security 8 KMG - Company Men & HSE 3 MATERIALS Product Name WeightNol Per Usage Quantity End Product Name Weight/Vol Per Usage Quantity End Unit (kip) Unit (kip) DIESEL, Rig Gallons 22,443.00 WATER, DRILLING, 1 BBLS 300.00 DIESEL, Camp Gallons 395.00 3,286.00 WATER, POTABLE, 4 Gallons 3,100.00 6,603.00 SUPPORT CRAFT Name I Arrival Comments I Arrival Date (Departure Date WEATH ER Time: 23:30 I Weather: -20, WC -20, Cdy (Comments: Daily High /Low Temp: / 'Visibility: 10(mi) Ceiling: 110m Wind Spd: 0.0(knots) 'Gust Spd: 0.0(knots) CURRENTS MAX/SIG WAVE SWELL VESSEL Speed Dir Ht. Dir Period Ht. Heave Pitch Roll Offset Heading (knots) ( (ft) (`) (sec) (ft) (ft) ( ( (ft) ( / / / INPUT FLUID Oil: 0.0 (bbl) H2O: 0.0 (bbl) Other: 0.0 (bbl) Cum Oil: Cum H2O: Cum Other: FLUID RECOVERED Oil: -5.0 (bbl) H2O: -5.0 (bbl) Other: -5.0 (bbl) Cum Oil: 0.0 (bbl) Cum H2O: 0.0 (bbl) Cum Other: 0.0 (bbl) FLUID LEFT TO RECOVER Oil: 5.0 (bbl) H2O: 5.0 (bbl) Other: 5.0 (bbl) Cum Oil: I I Cum H2O: I I Cum Other: ' REMARKS 1/5/2007 2:47:15AM Page 4 of 4 • US ALASKA Daily Drilling Report Well: OLIKTOK POINT I - 2 Report No.: 7 Report Date: 1/6/2007 Project: NORTH SLOPE Site: OLIKTOK POINT Rig Name /No.: NABORS 245- E/245 -E Event: DRILLING Start Date: 12/31/2006 AFE No.: 14017001 Currency: Active Datum: KB @52.0ft (KELLY BUSHING - NABORS 245 -E) UWI: OLIKTOK POINT I - 2 WELL INFO API No.: !Block: (Supervisor: John Salario !Engineer: Walter Quay DEPTH DAYS MD: 2003 ft TVD: 1768 ft Progress: 1608 ft Avg ROP: 68.4 ft/hr Rotating Hours: 23.50 hr Cum Rot Hrs: 32.50 hr DFS: 2 days Est Days: 32.00 days MD Auth: 12,854.0 ft Last Casing: 16 " STATUS Current Status: Drilling 13 1/2" hole @ 2003' MD 24 Hr Summary: Driling / Sliding 13 1/2" hole f/ 395' to 2003' MD / 1768' TVD 24 Hr Forecast: Drill to section TD @ +/- 2600' MD. Circ hole clean. Wiper trip. Circ hole clean. POOH to run 10 3/4" csg COSTS Daily Cost: 160,761 $ ! Authorized Cost: 21,979,000 $ ! Cumulative Total: 6,745,274 $ ! Expenditure: 31% OPERATION SUMMARY From To Dur. Phase Code Subco Time MD From MD To Operation (hr) de2 Code (ft) (ft) 0:00 0:30 0.50 DRLSUR 10 P 395 395 Unable to get MWD survey. Rack back stand & take Sperry Gyro survey. 0:30 0:00 23.50 DRLSUR 02 A P 395 2003 Drilling / Sliding 13 1/2" hole f/ 395' to 2003' MD 1765' TVD 1608' New hole made in 23.5 hrs. Avg 68.4' hr WOB 20 - 25 K SPP 1700 GPM 482 ROP 120 80 RPM + 127 RPM Motor Mud wt 10 ppg Daily slide hrs 12.38 Daily Rot hrs 3.47 Last survey @ 1900.47' 44.5 deg 299.51 Az No accidents 1 Spill reported HOLE SECTIONS Section Name Section Effective ID MD (ft) TVD (ft) Hole Section Start Hole Section End Type Hole ( ") Top Base Top Base DatefTime Date/Time Diameter (") DRILL SURFACE Open Hole 13 -1/2 115 2003 1/4/2007 6:30AM HOLE MUD Daily Mud: 16,461 $ 1 Cum Mud Cost: $ Mud Desc Density Viscosity Date/Time MD PV YP CI- Ca+ pH Pm Pf Mf (ppg) (s /qt) Check (cp) (Ibf /100ft (ppm) (ppm) (cc) (cc) (ft) POLYMER 10.10 63 1/5/2007 19:00 1,816.0 24 29 50,000 0 8.80 0.00 0.07 1.07 POLYMER 10.00 72 1/5/2007 19:00 1,199.0 20 22 51,500 0 8.80 0.05 1.10 1/6/2007 1:18:08AM Page 1 of 5 • • US ALASKA <; Daily Drilling Report Well: OLIKTOK POINT 1- 2 Report No.: 7 1 Report Date: 1/6/2007 Project: NORTH SLOPE Site: OLIKTOK POINT Rig Name /No.: NABORS 245- E/245 -E Event: DRILLING Start Date: 12/31/2006 AFE No.: 14017001 Currency: Active Datum: KB @52.0ft (KELLY BUSHING - NABORS 245 -E) UWI: OLIKTOK POINT 1 - 2 BHA No.# 1 Bit No.: 1 Date/Time In: 1/4/2007 6:30AM Date/Time Out: Purpose: Drill Surface hole to +/- 2600' BHA Length: 1,119.26 (ft) Min ID: 2 ( ") Weight (Above /Below) Jars: 75,662/ (26,263kip) MD Footage String Wt Drag TQ On /Off (ft) (ft) Up / Down / Rot (kip) (ft-Ibf) (kip) 2003 0 0/130,000 17,000 1700/1400 2003 0 0/130,000 17,000 1700/1400 Assembly Components Component Type # of Length OD ID Connection Weight Grade Pin Serial No. Left Fish Neck Joints (ft) 0 C') OD Name (PPf) Box Or Length OD („) Right (ft) ( ") Spiral Mill Tooth Tri -Cone Bit 1 1.00 13 -1/2 9 -5/16 P 6 -5/8 256.31 Pin 5113623 Reg Bent Housing 1 30.70 8 5 B 6 -5/8 104.39 800481 0.75 H -90 Integral Blade Stabilizer 1 3.44 8 -3/32 3 B 6 -5/8 151.52 771476 3.50 H -90 MWD Tool 1 25.53 8 2 B 6 -5/8 160.60 124599 2.00 H -90 MWD Tool 1 23.19 8 2 B 6 -5/8 160.60 124599 2.00 H -90 Hang -Off Sub 1 2.58 8 2 -7/8 B 6 -5/8 149.18 SSDS251 2.50 H -90 5 Drill Collar 1 31.00 8 2 -3/4 B 6 -5/8 151.06 10800550 5.00 H -90 Drill Collar 1 31.05 8 2 -3/4 B 6 -5/8 151.06 192415 5.00 H -90 Drill Collar 1 31.10 8 2 -3/4 B 6 -5/8 151.06 192420 5.00 H -90 Drilling Jar 1 33.75 7 -3/4 2 -3/4 B 4 -1/2 140.52 17710003 1.61 IF Heavy Weight Drill Pipe 30 905.92 5 3 B 4 -1/2 49.30 IF Bit Details Bit No. Size Manufacturer Model No. B IADC Code Serial No. Jets MD In MD Out I- O- D- L- B -G -O -R (32nd ") (ft) (ft) 1 13 -1/2 Hughes MX1 N 117 5113623 1X13, 3X16 115.0 TODAY CUMULATIVE MD (ft) TODAY Current Flow SPP P Bit % @ Bit HHP Hours Footage ROP Hours Footage ROP (kip) RPM Rate (psi) (psi) (hp) (hr) (ft) (ft/hr) Cum Cum Cum (rpm) (9Pm) (hr) (ft) ( ft/hr) 2003 242.8 106.2 15.0 3.47 0.0 8.58 560.0 65.3 2003 / 242.8 106.2 15.0 12.38 0.0 20.96 560.0 26.7 PUMP /HYDRAULICS No. Make /Model Stroke Liner Size Efficiency Pressure SPM Output Kill SPM /Pressure /Depth % •si s•m • •m spml•si /ft 01 CONTINENTAL EMSCO / FB -1600 12 6 95.00 1700 58 242.8 02 CONTINENTAL -EMSCO / F -1600 12 6 95.00 1700 58 242.8 ANCHOR TENSION 1 2 3 4 5 6 7 8 9 10 11 12 Tension (kip) Direction (°) 1/6/2007 1:18:08AM Page 2 of 5 US ALASKA Daily Drilling Report a. Well: OLIKTOK POINT I - 2 Report No.: 7 Report Date: 1/6/2007 Project: NORTH SLOPE Site: OLIKTOK POINT Rig Name /No.: NABORS 245- E/245 -E Event: DRILLING Start Date: 12/31/2006 AFE No.: 14017001 Currency: Active Datum: KB @52.0ft (KELLY BUSHING - NABORS 245 -E) UWI: OLIKTOK POINT I - 2 SURVEYS MD Inc Azi TVD N/S E/W V. Sec DLeg Short Name (ft) ( ( (ft) (ft) (ft) (ft) ( 418.5 5.83 312.90 418.0 9.6 -10.3 9.6 2.19 514.0 7.25 310.31 512.9 16.8 -18.4 16.8 1.52 604.5 11.31 304.55 602.3 25.6 -30.1 25.6 4.59 697.0 15.16 300.45 692.2 36.8 -48.0 36.8 4.29 787.2 17.41 300.32 778.8 49.6 -69.8 49.6 2.49 868.6 18.19 300.53 856.3 62.2 -91.2 62.2 0.96 957.1 21.68 299.86 939.5 77.4 -117.3 77.4 3.95 1,049.7 24.71 299.53 1,024.6 95.5 -149.0 95.5 3.28 1,144.9 29.56 298.03 1,109.3 116.3 -187.1 116.3 5.14 1,238.1 35.22 295.20 1,188.0 138.6 -231.7 138.6 6.29 1,332.8 37.74 297.84 1,264.1 163.7 -282.1 163.7 3.14 1,429.6 40.33 300.76 1,339.3 193.6 -335.2 193.6 3.28 1,523.7 41.02 300.90 1,410.7 225.0 -387.9 225.0 0.74 1,597.1 41.51 301.26 1,465.9 250.0 -429.3 250.0 0.74 1,713.2 38.53 301.21 1,554.8 288.8 -493.2 288.8 2.57 1,807.4 41.56 300.15 1,626.9 319.6 -545.3 319.6 3.30 1,900.5 44.50 299.51 1,694.9 351.2 -600.4 351.2 3.19 MUD SYSTEM Gas Volumes Losses Avg Conn Gas ( %): Total String Vol (bbl): 0.0 Surface Total (bbl) : 60.0 Max Connection Gas ( %): Total Annular Vol (bbl): 0.0 Subsurface Total (bbl) : Avg Trip Gas ( %): Total Pit Vol (bbl): 0.0 Max Trip Gas ( %): Lines (bbl): 0.0 Avg Background Gas ( %): Max Background Gas ( %): Total System Vol (bbl): 0.0 Total (bbl): 60.0 MUD PRODUCTS Product Units Used Day Cost ($) Quantity End Baracor 700 5 GAL 2.00 0.00 34.00 Barascav D SACKS 2.00 0.00 45.00 EZ Mud LBS 28.00 0.00 52.00 Potassium chloride SACKS 320.00 0.00 280.00 X -Cide 206 GAL 3.00 0.00 33.00 DrII -N -Slide 55 GAL 3.00 0.00 11.00 Barazan D+ SACKS 33.00 0.00 280.00 Baroid Chemicals $$$$ 1.00 16,461.12 -4.00 Pac R SACKS 6.00 0.00 0.00 1/6/2007 1:18:08AM Page 3 of 5 US ALASKA Daily Drilling Report -4-p" = Well: OLIKTOK POINT I - 2 Report No.: 7 Report Date: 1/6/2007 Project: NORTH SLOPE Site: OLIKTOK POINT Rig Name /No.: NABORS 245- E/245 -E Event: DRILLING Start Date: 12/31/2006 AFE No.: 14017001 Currency: Active Datum: KB @52.0ft (KELLY BUSHING - NABORS 245 -E) I UWI: OLIKTOK POINT I - 2 SAFETY Status DSLTI: DSLTA: 39.00 (days) STOP Cards: Inspections /Drills Drill Type: Last Drill: Last Fire /Boat Drill: Last Evacuation Drill: Last Weekly Rig Check: Daily Inspection Done: Last Safety Inspection: 12/31/2006 Last Safety Meeting: 1/5/2007 Last Csg Press Test: Last Csg Press: Last Pit Drill: Last Diverter Drill: Test COM.: 1/5/2007 Ton Miles: Last H2S Drill: Last Trip Drill: BOP Pressure Tests Last BOP Pressure Test: Next Test Due: Last BOP Function Test: Last BOP Drill: Standpipe Manifold: Kelly Hose: Diverter Pressure: Annular Press: Upper Rams: Lower Rams: Choke Line: Choke Manifold: Kill Line: PERSONNEL Total No. of People: 68 Company No. People Company No. People NABORS - Rig Hands 30 PRA - Geologist 1 Sperry Sun - DDs, MWD /LWD, Loggers 9 BAROID - Mud Engineers 2 ACS - Alaska Clean Seas 1 PEAK - Truck Drivers 9 Remote Medical - Medic 1 AES - Comp Support, Expediter, Bear Watch 4 DUS - Cooks, Housekeeping, Security 8 KMG - Company Men & HSE 3 MATERIALS Product Name Weight/Vol Per Usage Quantity End Product Name WeightNol Per Usage Quantity End Unit (kip) Unit (kip) DIESEL, Rig Gallons 4,643.00 15,856.00 WATER, DRILLING, I BBLS 900.00 DIESEL, Camp Gallons 422.00 4,977.00 WATER, POTABLE, 1 Gallons 3,999.00 6,200.00 SUPPORT CRAFT Name ' Arrival Comments ' Arrival Date 'Departure Date WEATHER Time: 23:30 Weather: -10, WC -22, Snow Comments: Daily High /Low Temp: / Visibility: 5(mi) Ceiling: 10m Wind Spd: 7.0(knots) Gust Spd: 10.0(knots) CURRENTS MAX/SIG WAVE SWELL VESSEL Speed Dir Dir Period 1111111611.1111 Roll Offset Heading xi knots sec ft (°) / / / INPUT FLUID Oil: 0.0 (bbl) H2O: 0.0 (bbl) Other: 0.0 (bbl) Cum Oil: Cum H2O: Cum Other: FLUID RECOVERED Oil: -5.0 (bbl) H2O: -5.0 (bbl) Other: -5.0 (bbl) Cum Oil: 0.0 (bbl) Cum H2O: 0.0 (bbl) Cum Other: 0.0 (bbl) FLUID LEFT TO RECOVER Oil: I 5.0 (bbl) I H2O: I 5.0 (bbl)' Other: 5.0 (bbl) Cum Oil: Cum H2O: Cum Other: 1/6/2007 1:18:08AM Page 4 of 5 • US ALASKA Daily Drilling Report Well: OLIKTOK POINT I - 2 Report No.: 7 Report Date: 1/6/2007 Project: NORTH SLOPE Site: OLIKTOK POINT Rig Name /No.: NABORS 245- E/245 -E Event: DRILLING Start Date: 12/31/2006 AFE No.: 14017001 Currency: Active Datum: KB @52.0ft (KELLY BUSHING - NABORS 245 -E) UWI: OLIKTOK POINT I - 2 REMARKS 1/6/2007 1:18:08AM Page 5 of 5 • US ALASKA Daily Drilling Report Well: OLIKTOK POINT I - 2 Report No.: 8 Report Date: 1/7/2007 Project: NORTH SLOPE Site: OLIKTOK POINT Rig Name /No.: NABORS 245- E/245 -E Event: DRILLING Start Date: 12/31/2006 AFE No.: 14017001 I Currency: Active Datum: KB @52.0ft (KELLY BUSHING - NABORS 245 -E) UWI: OLIKTOK POINT I - 2 WELL INFO API No.: IBlock: 'Supervisor: John Salario 'Engineer: Walter Quay DEPTH DAYS MD: 2580 ft TVD: 2031 ft Progress: 577 ft Avg ROP: 104.9 ft/hr Rotating Hours: 5.50 hr Cum Rot Hrs: 38.00 hr DFS: 3 days Est Days: 32.00 days MD Auth: 12,854.0 ft Last Casing: STATUS Current Status: Rigging up 10 3/4" csg tools. 2 ' MD. Circ 3 X BU. Repair Top drive clamp on saver sub. Wiper trip Hr Summary: Drilling 13 1/2" hole f/ 2003' to 580 p p p p p to 1120' & return to bottom. Circ 3 X BU. POOH to MWD & download memory. LD BHA. RU 10 3/4" csg tools 24 Hr Forecast: Run 10 3/4" csg. Circ & Cement. Nipple down Diverter. NU BOP COSTS Daily Cost: 223,613 $ I Authorized Cost: 21,979,000 $ I Cumulative Total: 7,082,970 $ I Expenditure: 32% OPERATION SUMMARY From To Dur. Phase Code Subco Time MD From MD To Operation (hr) de2 Code (ft) (ft) 0:00 4:30 4.50 DRLSUR 02 A P 2003 2419 Drilling / Sliding 13 1/2" hole f/ 2003' to 2419' 4:30 5:30 1.00 DRLSUR 05 A P 2419 2419 Circ for sample & correlate log w/ geologist to determine secton TD 5:30 6:30 1.00 DRLSUR 02 A P 2419 2580 Drilling Sliding 13 1/2" hole f/ 2419' to 2580' TD MD / 2031' TVD 577' New hole made in 5 1/2 hrs Avg ROP 105' hr WOB 20 K SPP 1700 GPM 482 ROP 120 80 RPM + 127 RPM Motor PU wt 150 SO wt 120 Rot wt 135 Mud wt 9.8 ppg Daily slide hrs 1.8 Daily Rot hrs 2.2 Last survey @ 2510.28' 64.51 deg 303.72 Az 6:30 8:00 1.50 DRLSUR 05 A P 2580 2580 Circulate hole clean 3 X CBU 100 RPM 585 GPM 2100 PSI 8:00 9:00 1.00 DRLSUR 08 A T 2580 2520 Attempt POH. Backed out saver sub, UD 2 jts, worked on top drive saver sub. 9:00 14:00 5.00 DRLSUR 06 B P 2520 1120 Wiper trip f/ 2520' to 1120' Hole in good condition. Trip back to bottom. No fill 14:00 16:00 2.00 DRLSUR 05 A P 2580 2580 Circ. hole clean. 3 X BU 100 RPM 585 GPM 2100 PSI 16:00 19:30 3.50 DRLSUR 06 H P 2580 150 POOH to MWD tools 19:30 20:30 1.00 DRLSUR 06 H P 150 150 Down load memory f/ MWD 20:30 21:30 1.00 DRLSUR 06 H P 150 0 LD 8" Sperry MWD tools, Motor & bit. Bit - As new condition 21:30 0:00 2.50 DRLSUR 12 B P RU 10 3/4" csg tools No accidents or pollution reported HOLE SECTIONS Section Name Section Effective ID MD (ft) TVD (ft) Hole Section Start Hole Section End Type Hole ( ") Top Base Top Base Date/Time Date/Time Diameter ( ") 1/7/2007 12:43:55AM Page 1 of 5 US ALASKA Daily Drilling Report Well: OLIKTOK POINT I - 2 Report No.: 8 Report Date: 1/7/2007 Project: NORTH SLOPE I Site: OLIKTOK POINT Rig Name /No.: NABORS 245- E/245 -E Event: DRILLING Start Date: 12/31/2006 AFE No.: 14017001 Currency: Active Datum: KB @52.0ft (KELLY BUSHING - NABORS 245 -E) UWI: OLIKTOK POINT 1 - 2 DDRIL SURFACE (Open Hole I 13 -1/21 I 1151 20031 115.01 2,031.11 1/4/2007 6:30AM 11/6/2007 9:30PM MUD Daily Mud: 26,446 $ 1 Cum Mud Cost: $ Mud Desc Density Viscosity Date/Time MD PV YP CI- Ca+ pH Pm Pf Mf (ppg) (s /qt) Check (cp) (Ibf /100ft (ppm) (ppm) (cc) (cc) (ft) POLYMER 9.80 49 1/6/2007 19:00 2,580.0 16 18 60,000 0 8.90 0.00 0.07 0.79 POLYMER 10.00 58 1/6/2007 8:00 2,580.0 21 20 49,500 0 9.00 0.00 0.10 0.70 BHA No.# 1 Bit No.: 1 Date/Time In: 1/4/2007 6:30AM Date/Time Out: 1/6/2007 9:30PM Purpose: Drill Surface hole to +/- 2580' BHA Length: 1,119.26 (ft) Min ID: 2 ( ") Weight (Above /Below) Jars: 75,662/ (26,263kip) MD Footage String Wt Drag TQ On /Off (ft) (ft) Up / Down / Rot (kip) (ft -Ibf) (kip) 2580 0 0/135 15 1700/1700 2580 0 0/135 15 1700/1700 Assembly Components Component Type # of Length OD ID Connection Weight Grade Pin Serial No. Left Fish Neck Joints (ft) ( ") ( ") OD Name (PPf) Box Or Length OD (") Right ( ft ) ( ") Spiral Mill Tooth Tri -Cone Bit 1 1.00 13 -1/2 9 -5/16 P 6 -5/8 256.31 Pin 5113623 Reg Bent Housing 1 30.70 8 5 B 6 -5/8 104.39 800481 0.75 H -90 Integral Blade Stabilizer 1 3.44 8 -3/32 3 B 6 -5/8 151.52 771476 3.50 H -90 MWD Tool 1 25.53 8 2 B 6 -5/8 160.60 124599 2.00 H -90 MWD Tool 1 23.19 8 2 B 6 -5/8 160.60 124599 2.00 H -90 Hang -Off Sub 1 2.58 8 2 -7/8 B 6 -5/8 149.18 SSDS251 2.50 H -90 5 Drill Collar 1 31.00 8 2 -3/4 B 6 -5/8 151.06 10800550 5.00 H -90 Drill Collar 1 31.05 8 2 -3/4 B 6 -5/8 151.06 192415 5.00 H -90 Drill Collar 1 31.10 8 2 -3/4 B 6 -5/8 151.06 192420 5.00 H -90 Drilling Jar 1 33.75 7 -3/4 2 -3/4 B 4 -1/2 140.52 17710003 1.61 IF Heavy Weight Drill Pipe 30 905.92 5 3 B 4 -1/2 49.30 IF Bit Details Bit No. Size Manufacturer Model No. Class IADC Code Serial No. Jets MD In MD Out I- O- D- L- B -G -O -R (32nd ") (ft) (ft) 1 13 -1/2 Hughes MX1 N 117 5113623 1X13, 3X16 115.0 2,580.0 1.- 1.- NO -G -1- 1 -NO -TD TODAY CUMULATIVE MD (ft) TODAY Current Flow SPP P Bit % @ Bit HHP Hours Footage ROP Hours Footage ROP (kip) RPM Rate (psi) (psi) (hp) (hr) (ft) (ft/hr) Cum Cum Cum (rpm) (gpm) (hr) (ft) (ft/hr) 2580 / 485.6 1,700.0 412.1 24.2 116.7 1.81 577.0 318.8 24.97 1,714.0 68.6 2580 / 485.6 1,700.0 412.1 24.2 116.7 2.20 577.0 262.3 24.97 1,714.0 68.6 1/7/2007 12:43:55AM Page 2 of 5 0 • US ALASKA Daily Drilling Report Well: OLIKTOK POINT I - 2 Report No.: 8 Report Date: 1/7/2007 Project: NORTH SLOPE ' Site: OLIKTOK POINT Rig Name /No.: NABORS 245- E/245 -E Event: DRILLING Start Date: 12/31/2006 AFE No.: 14017001 Currency: Active Datum: KB @52.0ft (KELLY BUSHING - NABORS 245 -E) ! UWI: OLIKTOK POINT I - 2 PUMP /HYDRAULICS No. Make /Model Stroke Liner Size Efficiency Pressure SPM Output Kill SPM /Pressure /Depth (") (") ( %) (psi) (sPm) (9Pm) (spm /psi /ft) 01 CONTINENTAL EMSCO / FB -1600 12 6 95.00 1700 58 242.8 02 CONTINENTAL -EMSCO / F -1600 12 6 95.00 1700 58 242.8 ANCHOR TENSION 1 2 3 4 5 6 7 8 9 10 11 12 Tension (kip) Direction ( °) SURVEYS MD Inc Azi TVD N/S E/W V. Sec DLeg Short Name (ft) (°) (°) (ft) (ft) (ft) (ft) ( °/100ft) 1,995.5 49.22 298.29 1,759.8 384.7 -661.1 384.7 5.06 2,090.8 59.48 299.02 1,815.3 421.8 -728.9 421.8 10.78 2,180.8 64.32 300.78 1,857.7 461.4 -797.7 461.4 5.64 2,280.8 63.37 302.15 1,901.8 508.3 -874.3 508.3 1.55 2,375.5 64.55 302.74 1,943.4 553.9 -946.1 553.9 1.37 2,469.7 64.95 303.06 1,983.5 600.2 - 1,017.6 600.2 0.52 2,510.3 64.51 303.72 2,000.9 620.4 - 1,048.3 620.4 1.83 2,580.9 64.51 303.72 2,031.2 655.8 - 1,101.3 655.8 0.00 MUD SYSTEM Gas Volumes Losses Avg Conn Gas ( %): Total String Vol (bbl): 0.0 Surface Total (bbl) : 386.0 Max Connection Gas ( %): Total Annular Vol (bbl): 0.0 Subsurface Total (bbl) : Avg Trip Gas ( %): Total Pit Vol (bbl): 0.0 Max Trip Gas ( %): Lines (bbl): 0.0 Avg Background Gas ( %): Max Background Gas ( %): Total System Vol (bbl): 0.0 Total (bbl): 386.0 MUD PRODUCTS Product Units Used Day Cost ($) Quantity End Baracor 700 5 GAL 6.00 0.00 34.00 Barascav D SACKS 1.00 0.00 44.00 EZ Mud LBS 13.00 0.00 42.00 Potassium chloride SACKS 280.00 0.00 224.00 X -Cide 206 GAL 3.00 0.00 30.00 Baroid SACKS 72.00 0.00 1,933.00 Barazan D+ SACKS 110.00 0.00 190.00 Baradefoam HP 5 GAL 1.00 0.00 27.00 Pac L SACKS 2.00 0.00 87.00 Aldacide G 5 GAL 3.00 0.00 16.00 Potassium hydroxide SACKS 1.00 0.00 35.00 Baroid Chemicals $$$$ 1.00 26,446.47 -5.00 1/7/2007 12:43:55AM Page 3 of 5 I 1 US ALASKA Dail Drilling Report Y 9 p e r} Well: OLIKTOK POINT 1 - 2 Report No.: 8 Report Date: 1/7/2007 Project: NORTH SLOPE Site: OLIKTOK POINT Rig Name /No.: NABORS 245- E/245 -E Event: DRILLING Start Date: 12/31/2006 AFE No.: 14017001 Currency: Active Datum: KB @52.0ft (KELLY BUSHING - NABORS 245 -E) UWI: OLIKTOK POINT 1 - 2 SAFETY Status DSLTI: DSLTA: 40.00 (days) STOP Cards: Inspections /Drills Drill Type: Last Drill: Last Fire /Boat Drill: Last Evacuation Drill: Last Weekly Rig Check: Daily Inspection Done: Last Safety Inspection: 12/31/2006 Last Safety Meeting: 1/6/2007 Last Csg Press Test: Last Csg Press: Last Pit Drill: Last Diverter Drill: 1/3/2007 Test COM.: 1/6/2007 Ton Miles: Last H2S Drill: Last Trip Drill: BOP Pressure Tests Last BOP Pressure Test: Next Test Due: Last BOP Function Test: Last BOP Drill: Standpipe Manifold: Kelly Hose: Diverter Pressure: Annular Press: Upper Rams: Lower Rams: Choke Line: Choke Manifold: Kill Line: PERSONNEL Total No. of People: 70 Company No. People Company No. People NABORS - Rig Hands 33 PRA - Geologist 1 Sperry Sun - DDs, MWD/LVVD, Loggers 8 BAROID - Mud Engineers 2 ACS - Alaska Clean Seas 1 PEAK - Truck Drivers 9 Remote Medical - Medic 1 AES - Comp Support, Expediter, Bear Watch 4 DUS - Cooks, Housekeeping, Security 8 KMG - Company Men & HSE 3 MATERIALS Product Name Weight/Vol Per Usage Quantity End Product Name Weight/Vol Per Usage Quantity End Unit (kip) Unit (kip) DIESEL, Rig Gallons 18,102.00 WATER, DRILLING, I BBLS 1,350.00 DIESEL, Camp Gallons 458.00 4,519.00 WATER, POTABLE, I Gallons 3,751.00 6,386.00 SUPPORT CRAFT Name 1 Arrival Comments I Arrival Date 'Departure Date WEATHER Time: 23:30 'Weather: -38, WC -55, PCdylComments: Daily High /Low Temp: / 'Visibility: 10(mi) Ceiling: 110m Wind Spd: 6.0(knots) (Gust Spd: 10.0(knots) CURRENTS MAX/S WAVE SWELL VESSEL Speed Dir Ht. Dir Period Ht. Heave Pitch Roll Offset Heading (knots) ( (ft) ( °) (sec) (ft) (ft) ( ( (ft) ( I / / / INPUT FLUID Oil: 0.0 (bbl) H2O: 0.0 (bbl) Other: 0.0 (bbl) Cum Oil: Cum H2O: Cum Other: FLUID RECOVERED Oil: -5.0 (bbl) H2O: -5.0 (bbl) Other: -5.0 (bbl) Cum Oil: 0.0 (bbl) Cum H2O: 0.0 (bbl) Cum Other: 0.0 (bbl) FLUID LEFT TO RECOVER Oil: I 5.0 (bbl) I H2O: I 5.0 (bbl)1 Other: 5.0 (bbl) Cum Oil: Cum H2O: Cum Other: 1/7/2007 12:43:55AM Page 4 of 5 • • US ALASKA Daily Drilling Report Well: OLIKTOK POINT I - 2 Report No.: 8 Report Date: 1/7/2007 Project: NORTH SLOPE Site: OLIKTOK POINT Rig Name /No.: NABORS 245- E/245 -E Event: DRILLING Start Date: 12/31/2006 AFE No.: 14017001 Currency: Active Datum: KB @52.0ft (KELLY BUSHING - NABORS 245 -E) UWI: OLIKTOK POINT I - 2 REMARKS 1/7/2007 12:43:55AM Page 5 of 5 • • US ALASKA Daily Drilling Report Well: OLIKTOK POINT I - 2 Report No.: 9 Report Date: 1/8/2007 Project: NORTH SLOPE Site: OLIKTOK POINT Rig Name /No.: NABORS 245- E/245 -E Event: DRILLING Start Date: 12/31/2006 Spud Date: 1/4/2007 AFE No.: 14017001 Currency: Active Datum: KB @52.0ft (KELLY BUSHING - NABORS 245 -E) UWI: OLIKTOK POINT I - 2 WELL INFO API No.: IBlock: 'Supervisor: John Salario 'Engineer: Walter Quay DEPTH DAYS MD: 2580 ft TVD: 2031 ft Progress: 0 ft Avg ROP: 0.0 ft/hr Rotating Hours: Cum Rot Hrs: 38.00 hr DFS: 4 days Est Days: 32.00 days MD Auth: 12,854.0 ft Last Casing: STATUS Current Status: Nippling down Diverter 24 Hr Summary: RU & run 10 3/4" csg, R/D csg tools, R/U Howco tools. Ciro & Cement. RD Cmt head & lines & back out landing jt. Nipple down Diverter 24 Hr Forecast: Finish Nipple down diverter. Install Wellhead & Nipple up BOP's. Test BOP's COSTS Daily Cost: 270,823 $ I Authorized Cost: 21,979,000 $ I Cumulative Total: 7,335,846 $ I Expenditure: 33% OPERATION SUMMARY From To Dur. Phase Code Subco Time MD From MD To Operation (hr) de2 Code (ft) (ft) 0:00 2:30 2.50 CSGSUR 12 B P Continue RU 10 3/4" csg tools 2:30 8:30 6.00 CSGSUR 12 A P Run 62 JTS ( 2525.15') 10 3/4" # 45.5, L -80 csg w/ BTC Land csg. Shoe @ 2563' MD. / 2022' TVD Top F.C. 2478' 8:30 11:30 3.00 CSGSUR 12 B P R/D csg tools. R/U Howco tools. CBU 11:30 12:00 0.50 CSGSUR 12 C P PJSM for cement job. Pump 5 bbls water, test lines to 3000 psi. OK. 12:00 12:30 0.50 CSGSUR 12 C P Drop bottom plug. Pump 50 bbls Alpha Spacer@ 10 ppg. 12:30 13:30 1.00 CSGSUR 12 C P Mix and pump 336 bbls ( 457 sx) type L Permafrost cement at 7 bpm, 400 psi, 10.7 ppg. 20.3 gal /sk, 4.15 cu. ft/sk. 13:30 14:00 0.50 CSGSUR 12 C P Mix and pump 47 bbls ( 228 sx) Premium cement at 4 bpm, 575 psi. Drop top plug. Pump 10 bbls water. 14:00 14:30 0.50 CSGSUR 12 C P Displace w /rig pump at 8 bpm, 460 psi. Bump plug w/1500 psi, at 2250 stks. Cal disp was 2301 stks. C.I.P. @ 1430. Approx 100 bbls cmt returns to surface. 14:30 18:00 3.50 CSGSUR 12 C P R/D Howco. Back out landing joint and L/D same. 18:00 0:00 6.00 CSGSUR 14 P Nipple down Flowline, Knfe v /v "s & Diverter lines & diverter No accidents or pollution reported HOLE SECTIONS Section Name Section Effective ID MD (ft) TVD (ft) Hole Section Start Hole Section End Type Hole ( ") Top Base Top Base Date/Time Date/Time Diameter (") MUD Daily Mud: 3258 $ 1 Cum Mud Cost: $ Mud Desc Density Viscosity Date/Time MD PV YP Cl- Ca+ pH Pm Pf Mf (ppg) (s /qt) Check (cp) (Ibf /100ft (ppm) (ppm) (cc) (cc) (ft) POLYMER 9.90 58 1/7/2007 7:00 2,580.0 21 25 54,000 0 8.50 0.00 0.05 0.75 POLYMER 9.90 50 1/7/2007 19:00 2,580.0 18 22 57,000 0 10.10 0.73 0.16 1.16 PUMP /HYDRAULICS No. I Make /Model Stroke Liner Size Efficiency Pressure SPM Output Kill SPM /Pressure /Depth ( ") ( ") ( %) (Psi) I (spm) (gpm) (spm /psi /ft) 1/8/2007 12:39:48AM Page 1 of 3 • II li US ALASKA Daily Drilling Report Well: OLIKTOK POINT I - 2 Report No.: 9 Report Date: 1/8/2007 Project: NORTH SLOPE Site: OLIKTOK POINT Rig Name /No.: NABORS 245- E/245 -E Event: DRILLING 1 Start Date: 12/31/2006 Spud Date: 1/4/2007 AFE No.: 14017001 Currency: Active Datum: KB ©52.0ft (KELLY BUSHING - NABORS 245 -E) UWI: OLIKTOK POINT I - 2 ANCHOR TENSION 1 2 3 4 5 6 7 8 9 10 11 12 Tension (kip) Direction ( °) SURVEYS M MIMI ft D 11E111111311111EM DLeg Short Name °/100ft 2,580.9 64.51 303.72 2,031.2 655.8 - 1,101.3 655.8 0.00 MUD SYSTEM Gas Volumes Losses Avg Conn Gas ( %): Total String Vol (bbl): 0.0 Surface Total (bbl) Max Connection Gas ( %): Total Annular Vol (bbl): 0.0 Subsurface Total (bbl) : Avg Trip Gas ( %): Total Pit Vol (bbl): 0.0 Max Trip Gas ( %): Lines (bbl): 0.0 Avg Background Gas ( %): Max Background Gas ( %): Total System Vol (bbl): 0.0 Total (bbl): 0.0 MUD PRODUCTS Product Units Used Day Cost ($) Quantity End Citric acid SACKS 8.00 0.00 96.00 Dextrid SACKS 2.00 0.00 268.00 EZ Mud LBS 14.00 0.00 76.00 Potassium chloride SACKS 56.00 0.00 784.00 Barazan D+ SACKS 4.00 0.00 266.00 Baroid Chemicals $$$$ 1.00 3,258.26 -6.00 SAFETY Status DSLTI: DSLTA: 41.00 (days) STOP Cards: Inspections /Drills 1 Drill Type: Last Drill: Last Fire /Boat Drill: Last Evacuation Drill: Last Weekly Rig Check: Daily Inspection Done: Last Safety Inspection: 12/31/2006 Last Safety Meeting: 1/7/2007 Last Csg Press Test: Last Csg Press: Last Pit Drill: Last Diverter Drill: 1/3/2007 Test COM.: 1/7/2007 Ton Miles: Last H2S Drill: Last Trip Drill: BOP Pressure Tests Last BOP Pressure Test: Next Test Due: Last BOP Function Test: Last BOP Drill: Standpipe Manifold: Kelly Hose: Diverter Pressure: Annular Press: Upper Rams: Lower Rams: Choke Line: Choke Manifold: Kill Line: 1/8/2007 12:39:48AM Page 2 of 3 ill 6 US ALASKA x Daily Drilling Report Well: OLIKTOK POINT I - 2 Report No.: 9 Report Date: 1/8/2007 Project: NORTH SLOPE Site: OLIKTOK POINT Rig Name /No.: NABORS 245- E/245 -E Event: DRILLING Start Date: 12/31/2006 Spud Date: 1/4/2007 AFE No.: 14017001 Currency: Active Datum: KB @52.0ft (KELLY BUSHING - NABORS 245 -E) UWI: OLIKTOK POINT I - 2 PERSONNEL Total No. of People: 67 Company No. People Company No. People NABORS - Rig Hands 30 PRA - Geologist 1 Sperry Sun - DDs, MWD /LWD, Loggers 8 BAROID - Mud Engineers 2 ACS - Alaska Clean Seas 1 PEAK - Truck Drivers 9 Remote Medical - Medic 1 AES - Comp Support, Expediter, Bear Watch 4 DUS - Cooks, Housekeeping, Security 8 KMG - Company Men & HSE 3 MATERIALS Product Name Weight/Vol Per Usage Quantity End Product Name Weight/Vol Per Usage Quantity End Unit (kip) Unit (kip) DIESEL, Rig Gallons 5,235.00 27,660.00 WATER, DRILLING, I BBLS 450.00 550.00 DIESEL, Camp Gallons 449.00 4,070.00 WATER, POTABLE, I Gallons 3,534.00 6,541.00 SUPPORT CRAFT Name Arrival Comments Arrival Date Departure Date WEATHER Time: 23:30 I Weather: -37, WC -60, Cdy (Comments: Daily High /Low Temp: / (Visibility: 10(mi) Ceiling: 110m Wind Spd: 13.0(knots) (Gust Spd: 20.0(knots) CURRENTS MAX/SIG WAVE SWELL VESSEL Speed Dir Ht. Dir Period Ht. Heave Pitch Roll Offset Heading (knots) ( °) ,; (ft) ( °) (sec) (ft) (ft) (°) ( °) (ft) ( °) / / / INPUT FLUID Oil: 0.0 (bbl) H20: 0.0 (bbl) Other: 0.0 (bbl) Cum Oil: Cum H2O: Cum Other: FLUID RECOVERED Oil: -5.0 (bbl) H20: -5.0 (bbl) Other: -5.0 (bbl) Cum Oil: 0.0 (bbl) Cum H2O: 0.0 (bbl) Cum Other: 0.0 (bbl) FLUID LEFT TO RECOVER Oil: ( 5.0 (bbl) H2O: I 5.0 (bbl) Other: I 5.0 (bbl) Cum Oil: Cum H2O: Cum Other: REMARKS 1 1/8/2007 12:39:48AM Page 3 of 3 • US ALASKA Daily Drilling Report Well: OLIKTOK POINT I - 2 Report No.: 10 Report Date: 1/9/2007 Project: NORTH SLOPE i Site: OLIKTOK POINT Rig Name /No.: NABORS 245- E/245 -E Event: DRILLING ; Start Date: 12/31/2006 Spud Date: 1/4/2007 AFE No.: 14017001 Currency: Active Datum: KB @52.0ft (KELLY BUSHING - NABORS 245 -E) UWI: OLIKTOK POINT I - 2 WELL INFO API No.: 500292332670 IBlock: 'Supervisor: John Salario 'Engineer: Walter Quay DEPTH DAYS MD: 2580 ft TVD: 2031 ft Progress: 0 ft Avg ROP: 0.0 ft/hr Rotating Hours: Cum Rot Hrs: 38.00 hr DFS: 5 days Est Days: 32.00 days MD Auth: 12,854.0 ft Last Casing: STATUS Current Status: Filling Bop's w/ water 24 Hr Summary: Finish ND Diverter. Install Vetco WH & test to 5000 psi. NU BOP's 24 Hr Forecast: Test BOPs. PU 9 -7/8" BHA PU 36 jts 5" dp. Continue TIH. Test csg to 2500 psi. Drill out Shoe track & 10' new hole. Circ BU. LOT. Drill ahead 97/8" hole. COSTS Daily Cost: 160,106 $ I Authorized Cost: 21,979,000 $ I Cumulative Total: 7,499,191 $ I Expenditure: 34% OPERATION SUMMARY From To Dur. Phase Code Subco Time MD From MD To Operation (hr) de2 Code (ft) (ft) 0:00 1:00 1.00 CSGSUR 14 P 0 0 Finish nippling down Diverter 1:00 4:00 3.00 CSGSUR 14 P 0 0 Install Vetco MB 243 Wellhead & test to 5000 psi 4:00 22:00 18.00 CSGSUR 14 P 0 0 Nipple up 3 spools. Nipple back down to wrong alignment of choke & kill valves. Turn spools 1 hole & begin nippling up again. Nipple up BOP's 22:00 0:00 2.00 CSGSUR 14 P MU Vetco test plug & JT & MU TIW & Grey valve. Fill BOP & stack w/ water. Retighten down bell nipple bolts. No accidents no polution reported. HOLE SECTIONS Section Name Section Effective ID MD (ft) TVD (ft) Hole Section Start Hole Section End Type Hole ( ") Top Base Top Base Date/Time Date/Time Diameter (") MUD Daily Mud: 3295 $ 1 Cum Mud Cost: $ Mud Desc Density Viscosity Date/Time MD PV YP Cl- Ca+ pH Pm Pf Mf (ppg) (s /qt) Check (cp) (Ibf /100ft (ppm) (ppm) (cc) (cc) (ft) POLYMER 9.50 43 1/8/2007 19:00 2,580.0 14 13 58,000 0 9.10 0.44 0.69 I POLYMER 9.60 44 1/8/2007 9:00 2,580.0 14 14 54,000 0 8.80 0.00 0.05 0.55 PUMP /HYDRAULICS No. I Make /Model Stroke Liner Size Efficiency Pressure SPM Output Kill SPM /Pressure /Depth ( ") ( ") ( %) (Psi) I (spm) (gPm) (spm /psi /ft) ANCHOR TENSION 2 3 4 5 6 7 8 9 10 11 12 Tension (kip) Direction ( °) 1/9/2007 12:38:16AM Page 1 of 3 US ALASKA N Daily Drilling Report .:,; Well: OLIKTOK POINT I - 2 Report No.: 10 Report Date: 1/9/2007 Project: NORTH SLOPE Site: OLIKTOK POINT Rig Name /No.: NABORS 245- E/245 -E Event: DRILLING Start Date: 12/31/2006 Spud Date: 1/4/2007 AFE No.: 14017001 Currency: Active Datum: KB @52.0ft (KELLY BUSHING - NABORS 245 -E) UWI: OLIKTOK POINT I - 2 SURVEYS ft 1.11111111/11 ft ��� ° D 00ft Short Name 2,580.9 64.51 303.72 2,031.2 655.8 - 1,101.3 655.8 0.00 MUD SYSTEM Gg,. Volumes Losses Avg Conn Gas ( %): Total String Vol (bbl): 0.0 Surface Total (bbl) : 24.0 Max Connection Gas ( %): Total Annular Vol (bbl): 0.0 Subsurface Total (bbl) : Avg Trip Gas ( %): Total Pit Vol (bbl): 0.0 Max Trip Gas ( %): Lines (bbl): 0.0 Avg Background Gas ( %): Max Background Gas ( %): Total System Vol (bbl): 0.0 Total (bbl): 24.0 MUD PRODUCTS Product Units Used Day Cost ($) Quantity End Dextrid SACKS 22.00 0.00 246.00 X -Cide 206 GAL 2.00 0.00 28.00 Barazan D+ SACKS 10.00 0.00 256.00 Baroid Chemicals $$$$ 1.00 3,295.16 -7.00 SAFETY Status DSLTI: DSLTA: 42.00 (days) STOP Cards: Inspections /Drills Drill Type: Last Drill: Last Fire /Boat Drill: Last Evacuation Drill: Last Weekly Rig Check: Daily Inspection Done: Last Safety Inspection: 12/31/2006 Last Safety Meeting: 1/8/2007 Last Csg Press Test: Last Csg Press: Last Pit Drill: Last Diverter Drill: 1/3/2007 Test COM.: 1/8/2007 Ton Miles: Last H2S Drill: Last Trip Drill: BOP Pressure Tests Last BOP Pressure Test: Next Test Due: Last BOP Function Test: Last BOP Drill: Standpipe Manifold: Kelly Hose: Diverter Pressure: Annular Press: Upper Rams: Lower Rams: Choke Line: Choke Manifold: Kill Line: PERSONNEL Total No. of People: 67 Company No. People Company No. People NABORS - Rig Hands 30 PRA - Geologist 1 Sperry Sun - DDs, MWD /LWD, Loggers 8 BAROID - Mud Engineers 2 ACS - Alaska Clean Seas 1 PEAK - Truck Drivers 9 Remote Medical - Medic 1 AES - Comp Support, Expediter, Bear Watch 5 DUS - Cooks, Housekeeping, Security 7 KMG - Company Men & HSE 3 MATERIALS Product Name Weight/Vol Per Usage Quantity End Product Name Weight/Vol Per Usage Quantity End Unit (kip) Unit (kip) DIESEL, Rig Gallons 3,276.00 24,384.00 WATER, DRILLING, I BBLS 100.00 450.00 DIESEL, Camp Gallons 429.00 3,641.00 WATER, POTABLE, 4 Gallons 3,596.00 6,944.00 1/9/2007 12:38:16AM Page 2 of 3 • ID US ALASKA Daily Drilling Report Well: OLIKTOK POINT I - 2 Report No.: 10 1 Report Date: 1/9/2007 Project: NORTH SLOPE Site: OLIKTOK POINT Rig Name /No.: NABORS 245- E/245 -E Event: DRILLING Start Date: 12/31/2006 Spud Date: 1/4/2007 AFE No.: 14017001 Currency: Active Datum: KB @52.0ft (KELLY BUSHING - NABORS 245 -E) UWI: OLIKTOK POINT I - 2 SUPPORT CRAFT Name 1 Arrival Comments I Arrival Date (Departure Date WEATHER Time: 23:30 I Weather: -43, WC -62, Clear'Comments: Daily High /Low Temp: / 'Visibility: 10(mi) Ceiling: 110m Wind Spd: 6.0(knots) 'Gust Spd: 10.0(knots) CURRENTS MAX/SIG WAVE SWELL VESSEL Speed Dir Ht. Dir Period Ht. Heave Pitch Roll Offset Heading (knots) (°) (ft) (°) (sec) (ft) (ft) (°) (°) (ft) (°) / / / P INPUT FLUID OH: 0.0 (bbl) H2O: 0.0 (bbl) Other: 0.0 (bbl) Cum Oil: Cum H2O: Cum Other: FLUID RECOVERED Oil: -5.0 (bbl) H2O: -5.0 (bbl) Other: -5.0 (bbl) Cum Oil: 0.0 (bbl) Cum H2O: 0.0 (bbl) Cum Other: 0.0 (bbl) FLUID LEFT TO RECOVER Oil: ( 5.0 (bbl) H2O: I 5.0 (bbl) Other: 5.0 (bbl) Cum Oil: Cum H2O: Cum Other: REMARKS 1/9/2007 12:38:16AM Page 3 of 3 • ±US ALASKA Daily Drilling Report Well: OLIKTOK POINT I - 2 Report No.: 11 Report Date: 1/10/2007 Project: NORTH SLOPE Site: OLIKTOK POINT Rig Name /No.: NABORS 245- E/245 -E Event: DRILLING Start Date: 12/31/2006 Spud Date: 1/4/2007 AFE No.: 14017001 Currency: Active Datum: KB @52.0ft (KELLY BUSHING - NABORS 245 -E) UWI: OLIKTOK POINT I - 2 WELL INFO API No.: 500292332670 IBlock: (Supervisor: John Salario (Engineer: Walter Quay DEPTH DAYS MD: 2580 ft TVD: 2031 ft Progress: 0 ft Avg ROP: 0.0 ft/hr Rotating Hours: Cum Rot Hrs: 38.00 hr DFS: 6 days Est Days: 32.00 days MD Auth: 12,854.0 ft Last Casing: STATUS Current Status: Test csg to 2500 psi for 30 min 24 Hr Summary: Test BOP's. Install Vetco Wear bushing. Ru Rig floor & LD 8" BHA. PU 9 7/8" Motor BHA & TIH. PU 36 Jts 5" Dp/ Test csg 24 Hr Forecast: Test Csg to 2500 psi. Slip & cut drill line. Drill out shoe track. Drill 15' new hole. Circ BU. Perform LOT. Drill ahead 9 7/8" hole. COSTS Daily Cost: 273,626 $ I Authorized Cost: 21,979,000 $ I Cumulative Total: 7,783,011 $ I Expenditure: 35% OPERATION SUMMARY From To Dur. Phase Code Subco Time MD From MD To Operation (hr) de2 Code (ft) (ft) 0:00 1:00 1.00 CSGSUR 14 P Attempt to test BOP's. Leak on choke line. Retighten bolts & Shell test BOP 1:00 8:00 7.00 CSGSUR 15 P 0 0 Test BOP's F/ Driller Panel * ** John Crisp , AOGCC, notified 1/8/07 @ 1930 hrs & gave permission to test BOP's. without AOGCC agent present. All tests charted. Tested 5" pipe rams, VBR rams, blind rams & Annular to 250 / 3000 psi for 5/5 min Tested 16 v /v's on choke manifold, Manual choke & kill & HCR v /v's to 250 / 3000 psi for 5 / 5 min. Tested 5" TIW, 5" Grey v /v,Upper & Lower top drive IBOP's to 250 / 3000 psi for 5 / 5 min 8:00 9:00 1.00 OTHER 15 D P 0 0 Pull Vetco test plug & set wear bushing 9:00 12:00 3.00 OTHER 06 D P 0 0 RU bails & elevators, Blow down Top Drive & Choke manifold & pull out strip o matic. LD 8" BHA 12:00 16:00 4.00 OTHER 06 D P 0 150 Hold PJSM. PU 9 7/8" Bit ( MXL -IV ). Sperry Motor w/ 1.5 deg bend, 9 1/2 " IBS, Sperry Sun MWD tools. Distances f/ bit : GR 48' RES 56' PWD 64' DEN 83' ACAL 93' NEUT 97' Sonic 122' 16:00 19:00 3.00 OTHER 06 D P 150 150 Download to MWD. Hold PJSM & load Nukes 19:00 21:00 2.00 OTHER 06 D P 150 1140 Continue TIH w/ NM Flex DC's, 3 HWDP, Jars, 26 HWDP, 9 7/8" Ghost reamer © 1137' 21:00 21:30 0.50 OTHER 08 A T 1140 1140 Unable to operate top drive. Repair Glycol pump 21:30 22:00 0.50 OTHER 05 A P 1140 1140 Shallow test MWD. Blow down top drive 22:00 23:30 1.50 OTHER 06 D P 1140 2300 Continue TIH, Picking up 36 Jts 5" DP 23:30 0:00 0.50 OTHER 15 P 2300 2300 RU & test csg to 2500 psi for 30 min No accidents or pollution reported HOLE SECTIONS Section Name Section Effective ID MD (ft) TVD (ft) Hole Section Start Hole Section End Type Hole ( ") Top Base Top Base Date/Time Date/Time Diameter ( ") 1/10/2007 12:33:24AM Page 1 of 4 III US ALASKA 7.,,:r, f Daily Drilling Report Well: OLIKTOK POINT I - 2 Report No.: 11 Report Date: 1/10/2007 Project: NORTH SLOPE Site: OLIKTOK POINT Rig Name /No.: NABORS 245- E/245 -E Event: DRILLING Start Date: 12/31/2006 Spud Date: 1/4/2007 AFE No.: 14017001 Currency: Active Datum: KB @52.0ft (KELLY BUSHING - NABORS 245 -E) UWI: OLIKTOK POINT 1- 2 MUD Daily Mud: 6184 $ 1 Cum Mud Cost: $ Mud Desc Density Viscosity Date/Time MD PV YP Cl- Ca+ pH Pm Pf Mf (ppg) (s /qt) Check (cp) (Ibf /100ft (ppm) (ppm) (cc) (cc) (ft) POLYMER 9.30 46 1/9/2007 7:00 2,580.0 12 18 48,000 0 8.50 0.00 0.05 0.50 POLYMER 9.40 44 1/9/2007 18:00 2,580.0 11 16 54,000 0 8.50 0.00 0.05 0.50 BHA No.# 2 Bit No.: 2 Date/Time In: 1/9/2007 12:OOPM Date/Time Out: Purpose: Drill Intermediate Hole BHA Length: 1,140.33 (ft) Min ID: 1 -29/32 C) Weight (Above /Below) Jars: 69,228/ (26,997kip) MD Footage String Wt Drag TQ On /Off (ft) (ft) Up / Down / Rot (kip) (ft-lbf) (kip) Assembly Components Component Type # of Length OD ID Connection Weight Grade Pin Serial No. Left Fish Neck Joints (ft) ( ") ( ") OD Name (ppf) Box Or Length OD ( ") Right (ft) (") Spiral Mill Tooth Tri -Cone Bit 1 1.00 9 -7/8 6 -13/32 P 6 -5/8" 151.38 5113733 Reg Steerable Motor 1 25.10 6 -3/4 4 -3/4 B 4 -1/2" 61.48 UNKNOWN 70068 IF Integral Blade Stabilizer 1 6.97 6 -19/32 2 -7/8 B 4 -1/2" 94.47 BP 10801081 IF Float Sub 1 2.45 6 -5/8 2 -7/8 B 4 -1/2" 95.36 172605 IF MWD Tool 1 36.18 6 -3/4 1 -29/32 B 4 -1/2" 112.09 123357 IF MWD Tool 1 29.13 6 -3/4 1 -29/32 B 4 -1/2" 112.09 125865 IF MWD Tool 1 9.83 6 -3/4 1 -29/32 B 4 -1/2" 112.09 143792 IF MWD Tool 1 22.14 6 -3/4 1 -29/32 B 4 -1/2" 112.09 125611 IF Non -Mag Drill Collar 1 30.85 6 -27/32 2 -7/8 B 4 -1/2" 103.10 10855812 IF Drill Collar 1 31.05 6 -11/16 3 -1/4 B 4 -1/2" 91.88 10718518 IF Drill Collar 1 31.12 6 -21/32 2 -7/8 B 4 -1/2" 96.60 10750888 IF Heavy Weight Drill Pipe 3 90.60 5 3 B 4 -1/2" 49.30 IF Mechanical Jar 1 32.48 6 -1/4 2 -1/4 B 4 -1/2" 91.01 16210166 IF Heavy Weight Drill Pipe 26 785.24 5 3 B 4 -1/2" 49.30 IF Underreamer 1 6.19 6 -1/2 2 -7/8 B 4 -1/2" 90.96 2564463 IF Bit Details Bit No. Size Manufacturer Model No. Class IADC Code Serial No. Jets MD In MD Out I- O- D- L- B -G -O -R (32nd ") (ft) (ft) 2 9 -7/8 HUGHES MXL -1V N 117 5113733 1X12, 3X13 2,580.0 TODAY CUMULATIVE MD (ft) TODAY Current Flow SPP P Bit % @ Bit HHP Hours Footage ROP Hours Footage ROP (kip) RPM Rate (psi) (psi) (hp) (hr) (ft) (ft/hr) Cum Cum Cum (rpm) (gpm) (hr) (ft) (ft/hr) 1/10/2007 12:33:24AM Page 2 of 4 US ALASKA Daily Drilling Report Well: OLIKTOK POINT 1 - 2 Report No.: 11 Report Date: 1/10/2007 Project: NORTH SLOPE Site: OLIKTOK POINT Rig Name /No.: NABORS 245- E/245 -E Event: DRILLING Start Date: 12/31/2006 Spud Date: 1/4/2007 AFE No.: 14017001 , Currency: Active Datum: KB @52.0ft (KELLY BUSHING - NABORS 245 -E) UWI: OLIKTOK POINT 1- 2 PUMP /HYDRAULICS No I Make /Model Stroke Liner Size Efficiency Pressure SPM Output Kill SPM /Pressure /Depth ( ") C') ( %) (psi) (spm) (gpm) (spm /psi /ft) ANCHOR TENSION 1 2 3 4 5 6 7 8 9 10 11 12 Tension (kip) Direction ( °) SURVEYS MD Inc Azi TVD N/S E/W V. Sec DLeg Short Name (ft) ( ( (ft) (ft) (ft) (ft) ( °/100ft) 2,580.9 64.51 303.72 2,031.2 655.8 - 1,101.3 655.8 0.00 MUD SYSTEM Gas Volumes Losses Avg Conn Gas ( %): Total String Vol (bbl): 20.0 Surface Total (bbl) : Max Connection Gas ( %): Total Annular Vol (bbl): 195.0 Subsurface Total (bbl) : Avg Trip Gas ( %): Total Pit Vol (bbl): 833.0 Max Trip Gas ( %): Lines (bbl): 0.0 Avg Background Gas ( %): Max Background Gas ( %): Total System Vol (bbl): 1,048.0 Total (bbl): 0.0 MUD PRODUCTS Product Units Used Day Cost ($) Quantity End Potassium chloride SACKS 168.00 0.00 616.00 DrII -N -Slide 55 GAL 3.00 0.00 8.00 Barazan D+ SACKS 6.00 0.00 250.00 Baroid Chemicals $$$$ 1.00 6,184.02 -8.00 SAFETY Status DSLTI: DSLTA: 43.00 (days) STOP Cards: Inspections /Drills Drill Type: Last Drill: Last Fire /Boat Drill: Last Evacuation Drill: Last Weekly Rig Check: Daily Inspection Done: Last Safety Inspection: 12/31/2006 Last Safety Meeting: 1/9/2007 Last Csg Press Test: Last Csg Press: Last Pit Drill: 1/9/2007 Last Diverter Drill: 1/3/2007 Test COM.: 1/9/2007 Ton Miles: Last H2S Drill: Last Trip Drill: BOP Pressure Tests Last BOP Pressure Test: 1/9/2007 Next Test Due: 1/16/2007 Last BOP Function Test: 1/9/2007 Last BOP Drill: 1/9/2007 Standpipe Manifold: 3,000.0 (ps Kelly Hose: 3,000.0 (psi) Diverter Pressure: Annular Press: 3,000.0 (ps Upper Rams: 3,000.0 (ps Lower Rams: 3,000.0 (psi) Choke Line: 3,000.0 (ps Choke Manifold: 3,000.0 (ps Kill Line: 3,000.0 (ps 1/10/2007 12:33:24AM Page 3 of 4 • II US ALASKA 4 w Daily Drilling Report nom: Well: OLIKTOK POINT I - 2 Report No.: 11 ' Report Date: 1/10/2007 Project: NORTH SLOPE Site: OLIKTOK POINT Rig Name /No.: NABORS 245- E/245 -E Event: DRILLING Start Date: 12/31/2006 Spud Date: 1/4/2007 AFE No.: 14017001 Currency: Active Datum: KB @52.Oft (KELLY BUSHING - NABORS 245 -E) UWI: OLIKTOK POINT I - 2 PERSONNEL Total No. of People: 63 Company No. People Company No. People NABORS - Rig Hands 27 PRA - Geologist 1 Sperry Sun - DDs, MWD /LWD, Loggers 7 BAROID - Mud Engineers 2 ACS - Alaska Clean Seas 1 PEAK - Truck Drivers 9 Remote Medical - Medic 1 AES - Comp Support, Expediter, Bear Watch 5 DUS - Cooks, Housekeeping, Security 7 KMG - Company Men & HSE 3 MATERIALS Product Name WeightNol Per Usage Quantity End Product Name WeightNol Per Usage Quantity End Unit (kip) Unit (kip) DIESEL, Rig Gallons 5,943.00 32,895.00 WATER, DRILLING, I BBLS 220.00 680.00 DIESEL, Camp Gallons 434.00 3,207.00 WATER, POTABLE, 1 Gallons 3,069.00 6,727.00 SUPPORT CRAFT Name I Arrival Comments 1 Arrival Date (Departure Date WEATHER Time: 11:00 'Weather: -20, WC -41, PCdylComments: Daily High /Low Temp: / 'Visibility: 10(mi) Ceiling: 110m Wind Spd: 12.0(knots) 'Gust Spd: 15.0(knots) CURRENTS MAX/SIG WAVE SWELL VESSEL Speed Ht. Dir Period Ht. Heave Pitch Roll Offset Heading (knots) ° (ft) ( °) (sec) (ft) (ft) ( ( (ft) ( / / / INPUT FLUID Oil: 0.0 (bbl) H20: 0.0 (bbl) Other: 0.0 (bbl) Cum Oil: Cum H20: Cum Other: FLUID RECOVERED Oil: -5.0 (bbl) H20: -5.0 (bbl) Other: -5.0 (bbl) Cum Oil: 0.0 (bbl) Cum H2O: 0.0 (bbl) Cum Other: 0.0 (bbl) I FLUID LEFT TO RECOVER Oil: I 5.0 (bbl)' H20: I 5.0 (bbl)( Other: ' 5.0 (bbl) Cum Oil: Cum H2O: Cum Other: REMARKS 1/10/2007 12:33:24AM Page 4 of 4 • • US ALASKA Daily Drilling Report Well: OLIKTOK POINT I - 2 Report No.: 12 Report Date: 1/11/2007 Project: NORTH SLOPE Site: OLIKTOK POINT Rig Name /No.: NABORS 245- E/245 -E Event: DRILLING Start Date: 12/31/2006 Spud Date: 1/4/2007 AFE No.: 14017001 Currency: Active Datum: KB @52.oft (KELLY BUSHING - NABORS 245 -E) UWI: OLIKTOK POINT I - 2 WELL INFO API No.: 500292332670 Block: !Supervisor: John Salario 'Engineer: Walter Quay DEPTH DAYS MD: 3694 ft TVD: 2524 ft Progress: 1114 ft Avg ROP: 71.9 ft/hr Rotating Hours: 15.50 hr Cum Rot Hrs: 53.50 hr DFS: 7 days Est Days: 32.00 days MD Auth: 12,854.0 ft Last Casing: STATUS Current Status: Drilling 9 7/8" hole @ 3694' MD 24 Hr Summary: Test csg to 2500 psi. Slip & cut drill line. Drill out Shoe trac. Drill 15' new hole. Circ to 9.5 ppg. Perform LOT 16.1 ppg EMW. Drill ahead 9 7/8" hole to 2747' Rerpair Standpipe bleed off line. Drill to 3694' MD 24 Hr Forecast: Dril ahead) 9 7/8" hole to section TD @ +/- 7000' COSTS Daily Cost: 206,301 $ ' Authorized Cost: 21,979,000 $ ! Cumulative Total: 7,989,313 $ ' Expenditure: 36% OPERATION SUMMARY From To Dur. Phase Code Subco Time MD From MD To Operation (hr) de2 Code (ft) (ft) 0:00 1:30 1.50 DRLIN1 14 P 2300 2300 Test 10 3/4" csg to 2500 psi for 30 min 1:30 3:30 2.00 DRLIN1 09 P 2300 2300 Slip & cut 100' drill line 3:30 4:30 1.00 DRLIN1 07 P 2300 2300 Service top drive, blocks. service & reset COM 4:30 6:00 1.50 DRLINI 25 P 2300 2580 Tag Plugs on top FC @ 2475'. Drill out FC, & firm cmt in shoe track. Drill shoe @ 2563' & clean out rathole to 2580' 6:00 6:30 0.50 DRLIN1 02 A P 2580 2595 Drill 15' new 9 7/8" hole f/ 2580' to 2595' 6:30 7:30 1.00 DRLINI 05 A P 2595 2595 Circulate & even mud wt to 9.5 ppg for LOT 7:30 8:00 0.50 DRLINI 05 A P 2575 2575 Perform LOT@ 10 3/4" shoe Max press. 550 psi EMW = 15 ppg at TVD 2022' w/ 9.5 ppg mud 2.5 bbls pumped w/ rig pump 8:00 10:00 2.00 DRLIN1 02 A P 2575 2747 Drill 9 7/8" hole f/ 2750' 10:00 11:00 1.00 DRLIN1 08 A T 2747 2747 Repair standpipe bleed off valve. 11:00 0:00 13.00 DRLIN1 02 A P 2747 3694 Drilling 9 7/8" hole f/ 2750' to 3694 ' MD / 2524' TVD 1114' New hole made in 15.5 hrs Avg 72' hr WOB 7 - 15 K TQ 2500 SPP 2000 GPM 550 Inst. ROP 160 80 RPM + 130 RPM Motor PU wt 175 SO wt 125 Rot wt 125 Mud wt 9.4 ppg Avg BG 24 units Daily slide hrs 2.8 Daily Rot hrs 7.2 Last survey @ 3654.05' 64.08 deg 305.05 Az No accidents or pollution reported HOLE SECTIONS Section Name Section Effective ID MD (ft) TVD (ft) Hole Section Start Hole Section End Type Hole ( ") Top Base Top Base Date/Time Date/Time Diameter (") 1/11/2007 2:02:44AM Page 1 of 5 ,sr US ALASKA - Daily Drilling Report Well: OLIKTOK POINT I - 2 Report No.: 12 Report Date: 1/11/2007 Project: NORTH SLOPE I Site: OLIKTOK POINT Rig Name /No.: NABORS 245- E/245 -E Event: DRILLING Start Date: 12/31/2006 Spud Date: 1/4/2007 AFE No.: 14017001 Currency: Active Datum: KB @52.0ft (KELLY BUSHING - NABORS 245 -E) UWI: OLIKTOK POINT I - 2 MUD Daily Mud: 12,235 $ 1 Cum Mud Cost: $ Mud Desc Density Viscosity Date/Time MD PV YP Cl- Ca+ pH Pm Pf Mf (ppg) (s /qt) Check (cp) (Ibf /100ft (ppm) (ppm) (cc) (cc) (ft) POLYMER 9.40 50 1/10/2007 9:15 2,653.0 17 21 56,000 0 10.50 0.00 0.25 0.70 POLYMER 9.40 43 1/10/2007 21:15 3,348.0 12 17 55,000 0 10.30 0.35 0.20 0.65 BHA No.# 2 Bit No.: 2 Date/Time In: 1/9/2007 12:OOPM Date/Time Out: Purpose: Drill Intermediate Hole BHA Length: 1,140.33 (ft) Min ID: 1 -29/32 ( ") Weight (Above /Below) Jars: 69,228/ (26,997kip) MD Footage String Wt Drag TQ On/Off (ft) (ft) Up / Down / Rot (kip) (ft-lbf) (kip) 3694 0 0/125 50 3694 0 0/125 50 Assembly Components Component Type # of Length OD ID Connection Weight Grade Pin Serial No. Left Fish Neck Joints (ft) ( ") ( ") OD Name (PO Box Or Length OD (") Right (ft) (,.) Spiral Mill Tooth Tri -Cone Bit 1 1.00 9 -7/8 6 -13/32 P 6 -5/8" 151.38 5113733 Reg Steerable Motor 1 25.10 6 -3/4 4 -3/4 B 4 -1/2" 61.48 UNKNOWN 70068 IF Integral Blade Stabilizer 1 6.97 6 -19/32 2 -7/8 B 4 -1/2" 94.47 BP 10801081 IF Float Sub 1 2.45 6 -5/8 2 -7/8 B 4 -1/2" 95.36 172605 IF MWD Tool 1 36.18 6-3/4 1 -29/32 B 4 -1/2" 112.09 123357 IF MWD Tool 1 29.13 6 -3/4 1 -29/32 B 4 -1/2" 112.09 125865 IF MWD Tool 1 9.83 6 -3/4 1 -29/32 B 4 -1/2" 112.09 143792 IF MWD Tool 1 22.14 6 -3/4 1 -29/32 B 4 -1/2" 112.09 125611 IF Non -Mag Drill Collar 1 30.85 6 -27/32 2 -7/8 B 4 -1/2" 103.10 10855812 IF Drill Collar 1 31.05 6 -11/16 3 -1/4 B 4 -1/2" 91.88 10718518 IF Drill Collar 1 31.12 6 -21/32 2 -7/8 B 4 -1/2" 96.60 10750888 IF Heavy Weight Drill Pipe 3 90.60 5 3 B 4 -1/2" 49.30 IF Mechanical Jar 1 32.48 6 -1/4 2 -1/4 B 4 -1/2" 91.01 16210166 IF Heavy Weight Drill Pipe 26 785.24 5 3 B 4 -1/2" 49.30 IF Underreamer 1 6.19 6 -1/2 2 -7/8 B 4 -1/2" 90.96 2564463 IF Bit Details Bit No. Size Manufacturer Model No. Class IADC Code Serial No. Jets MD In MD Out I- O- D- L- B -G -O -R (32nd ") (ft) (ft) 2 9 -7/8 HUGHES MXL -1V N 117 5113733 1X12, 3X13 2,580.0 TODAY CUMULATIVE MD (ft) TODAY Current Flow SPP P Bit % @ Bit HHP Hours Footage ROP Hours Footage ROP (kip) RPM Rate (psi) (psi) (hp) (hr) (ft) (ft/hr) Cum Cum Cum (rpm) (gpm) (hr) (ft) (ft/hr) 1/11/2007 2:02:44AM Page 2 of 5 0 • US ALASKA Daily Drilling Report • . .# Well: OLIKTOK POINT I - 2 Report No.: 12 Report Date: 1/11/2007 Project: NORTH SLOPE I Site: OLIKTOK POINT Rig Name /No.: NABORS 245- E/245 -E Event: DRILLING Start Date: 12/31/2006 Spud Date: 1/4/2007 AFE No.: 14017001 Currency: Active Datum: KB @52.0ft (KELLY BUSHING - NABORS 245 -E) UWI: OLIKTOK POINT I - 2 TODAY CUMULATIVE MD (ft) TODAY Current Flow SPP P Bit % @ Bit HHP Hours Footage ROP Hours Footage ROP (kip) RPM Rate (psi) (psi) (hp) (hr) (ft) (ft/hr) Cum Cum Cum (rpm) (gpm) (hr) (ft) (ft/hr) 3694 / 80 169.2 2,000.0 99.4 5.0 9.8 15.50 1,114.0 71.9 15.50 1,114.0 71.9 PUMP /HYDRAULICS No. Make /Model Stroke Liner Size Efficiency Pressure SPM Output Kill SPM /Pressure /Depth (") (") ( %) (psi) (spm) (gpm) (spm /psi /ft) 01 CONTINENTAL EMSCO / FB -1600 12 6 96.00 2000 65 275.0 40 / 375 / 3227 02 CONTINENTAL -EMSCO / F -1600 12 6 96.00 2000 65 275.0 ANCHOR TENSION 1 2 3 4 5 6 7 8 9 10 11 12 Tension (kip) . Direction ( °) SURVEYS MD Inc Azi TVD N/S E/W V. Sec DLeg Short Name (ft) ( ( (ft) (ft) (ft) (ft) ( 2,612.9 64.28 303.92 2,045.1 671.8 - 1,125.2 671.8 0.91 2,706.8 60.97 303.45 2,088.3 718.1 - 1,194.6 718.1 3.55 2,801.6 61.61 303.76 2,133.8 764.1 - 1,263.8 764.1 0.73 2,896.1 62.22 304.39 2,178.3 810.8 - 1,332.9 810.8 0.87 2,990.2 61.72 304.75 2,222.5 857.9 - 1,401.3 857.9 0.63 3,085.1 63.44 304.83 2,266.2 906.0 - 1,470.5 906.0 1.81 3,178.9 65.83 305.28 2,306.4 954.7 - 1,539.9 954.7 2.58 3,273.6 67.83 306.00 2,343.6 1,005.4 - 1,610.6 1,005.4 2.23 3,369.6 65.03 306.03 2,382.0 1,057.2 - 1,681.8 1,057.2 2.91 3,463.6 63.79 306.11 2,422.6 1,107.1 - 1,750.3 1,107.1 1.32 3,558.2 63.93 305.17 2,464.3 1,156.5 - 1,819.3 1,156.5 0.90 3,654.0 64.08 305.05 2,506.3 1,206.1 - 1,889.8 1,206.1 0.19 MUD SYSTEM Gas Volumes Losses Avg Conn Gas ( %): Total String Vol (bbl): 48.0 Surface Total (bbl) : Max Connection Gas ( %): Total Annular Vol (bbl): 181.0 Subsurface Total (bbl) : Avg Trip Gas ( %): Total Pit Vol (bbl): 710.0 Max Trip Gas ( %): Lines (bbl): 0.0 Avg Background Gas ( %): Max Background Gas ( %): Total System Vol (bbl): 939.0 Total (bbl): 0.0 MUD PRODUCTS Product Units Used Day Cost ($) Quantity End Baracor 700 5 GAL 4.00 0.00 30.00 Barascav D SACKS 4.00 0.00 40.00 1 .0 Dextrid SACKS 9 0 0.00 227.00 EZ Mud LBS 18.00 0.00 58.00 Potassium chloride SACKS 280.00 0.00 336.00 Barazan D+ SACKS 29.00 0.00 221.00 Baroid Chemicals $$$$ 1.00 12,235.41 -9.00 1/11/2007 2:02:44AM Page 3 of 5 4 • 0 US ALASKA Daily Drilling Report Well: OLIKTOK POINT I - 2 Report No.: 12 Report Date: 1/11/2007 Project: NORTH SLOPE I Site: OLIKTOK POINT Rig Name /No.: NABORS 245- E/245 -E Event: DRILLING Start Date: 12/31/2006 Spud Date: 1/4/2007 AFE No.: 14017001 I Currency: Active Datum: KB @52.0ft (KELLY BUSHING - NABORS 245 -E) UWI: OLIKTOK POINT I - 2 SAFETY Status DSLTI: DSLTA: 44.00 (days) STOP Cards: Inspections /Drills Drill Type: Last Drill: Last Fire /Boat Drill: Last Evacuation Drill: Last Weekly Rig Check: Daily Inspection Done: Last Safety Inspection: 12/31/2006 Last Safety Meeting: 1/10/2007 Last Csg Press Test: 1/10/2007 Last Csg Press: 2,500.0 (psi) Last Pit Drill: 1/9/2007 Last Diverter Drill: 1/3/2007 Test COM.: 1/10/2007 Ton Miles: Last H2S Drill: Last Trip Drill: BOP Pressure Tests Last BOP Pressure Test: 1/9/2007 Next Test Due: 1/16/2007 Last BOP Function Test: 1/9/2007 Last BOP Drill: 1/9/2007 Standpipe Manifold: 3,000.0 (ps Kelly Hose: 3,000.0 (psi) Diverter Pressure: Annular Press: 3,000.0 (ps Upper Rams: 3,000.0 (ps Lower Rams: 3,000.0 (psi) Choke Line: 3,000.0 (ps Choke Manifold: 3,000.0 (ps Kill Line: 3,000.0 (ps PERSONNEL Total No. of People: 68 Company No. People Company No. People NABORS - Rig Hands 28 PRA - Geologist 1 Sperry Sun - DDs, MWD /LWD, Loggers 9 BAROID - Mud Engineers 2 ACS - Alaska Clean Seas 1 PEAK - Truck Drivers 9 Remote Medical - Medic 1 AES - Comp Support, Expediter, Bear Watch 5 DUS - Cooks, Housekeeping, Security 9 KMG - Company Men & HSE 3 MATERIALS Product Name WeightNol Per Usage Quantity End Product Name WeightNol Per Usage Quantity End Unit (kip) Unit (kip) DIESEL, Rig Gallons 2,478.00 30,417.00 WATER, DRILLING, I BBLS 130.00 550.00 DIESEL, Camp Gallons 399.00 2,808.00 WATER, POTABLE, I Gallons 3,205.00 7,130.00 SUPPORT CRAFT Name L Arrival Comments 1 Arrival Date Departure Date WEATHER Time: 11:00 'Weather: -16 WC -36 PC (Comments: Daily High /Low Temp: / (Visibility: 10(mi) Ceiling: 110m Wind Spd: 12.0(knots) 'Gust Spd: 15.0(knots) CURRENTS MAX/SIG WAVE SWELL VESSEL Speed Dir Mg= Dir Period Ht. Heave Pitch Roll Offset Heading (knots) ( ( (sec) (ft) (ft) ( ( (ft) ( / / / INPUT FLUID Oil: 0.0 (bbl) H20: 0.0 (bbl) Other: 0.0 (bbl) Cum Oil: Cum H20: Cum Other: FLUID RECOVERED Oil: -5.0 (bbl) H20: -5.0 (bbl) Other: -5.0 (bbl) Cum Oil: 0.0 (bbl) Cum H20: 0.0 (bbl) Cum Other: 0.0 (bbl) FLUID LEFT TO RECOVER Oil: I 5.0 (bbl) I H2O: I 5.0 (bbl) Other: 5.0 (bbl) Cum Oil: Cum H20: Cum Other: 1/11/2007 2:02:44AM Page 4 of 5 .' 4. US ALASKA °vt= Daily Drilling Report Well: OLIKTOK POINT I - 2 Report No.: 12 Report Date: 1/11/2007 Project: NORTH SLOPE Site: OLIKTOK POINT Rig Name /No.: NABORS 245- E/245 -E Event: DRILLING Start Date: 12/31/2006 Spud Date: 1/4/2007 I AFE No.: 14017001 Currency: Active Datum: KB @52.Oft (KELLY BUSHING - NABORS 245 -E) UWI: OLIKTOK POINT I - 2 REMARKS I I 1/11/2007 2:02:44AM Page 5 of 5 ~ l~'~ T~ February 28, 2007 Commissioner Alaska Oil and Gas Conservation Commission 333 W 7`~' Avenue, Suite 100 Anchorage, Alaska 99501-3539 Re: Oliktok Point I-2 Kerr McGee Oil & Gas Corporation Completion Report MAR 0 5 2007 Alaska Oil & Gas Cons. Commission Anchorage Attached for your review is our Completion Report for the Oliktok Point I-2 well located from a gravel pad at Oliktok Point. This well was suspended with the ESP in place, a BPV set in the tubing hanger and the tree in place. If you have any questions or concerns about the completion report, please call me at 339- 6370 and I will do my best to address your questions or concerns. Sincerely, =,~,~~ Kim Bowen Kerr McGee/Anadarko Operations Manager Pe~e+~rr~ ~txporstbn ECEw~~ 3900 C Street Suite 402 Anchorage, AK 99503 STATE OF ALASKA ~ MAR ~} ~ 2007 ALA IL AND GAS CONSERVATION COMM N WELL COMPLETION OR RECOMPLETION REPO~t~t~ ~~fn'S~~"~ ~".,---- 1a. Well Status: Oil Q Gas ^ Plugged Abandoned ^ zonnczs.~os GINJ^ WINJ^ WDSPL^ No. of Completions Suspended ~ WAG ^ zonac2s.~~o Other 1 b. Well Class: Development ^ Exploratory0 Service ^ StratigraphicTest^ 2. Operator Name: Kerr McGee Oil & Gas Corp 5. Date Comp., Susp., or ,,11 Aband.: Susp ~'• T'~ 12. Permit to Drill Number: 206-144 3. Address: 3900 C Street, Ste 402, Anchorage, AK 99503 6. Date Spudded: ~_=?' 1~/y13/2tJ6~ /'s'U _~ .API Number: 50-23326-00 5t~-C5 -2,332G 4a. Location of Well (Governmental Section): Surface: 2055' FNL & 1526' FEL of Section 5, T13N, R9E UTM 7. Date TD Reached: ~~ 1/29/2007 ' 14. Well Name and Nu er: 3_ ~, o , Oliktok Point 1- Top of Productive Horizon: ??? 8. KB Elevation (ft): 52' 15. Field/Pool( Explor on Total Depth: ~~o 9. Plug Back Depth(MD+TVD): 4b. Location of Well (State Base Plane Coordinates): Surface: x- 516753 - y- 6036577 ~ Zone- 4 10. Total Depth (MD +TVD): :12,711 +3,599 ~ .Property Designation: ADL355024 TPI: x- y- Zone- Total Depth: x- ??? y- ??? Zone- 4 11. Depth Where SSSV S NA 17. Land Use Permit: ADL417493 18. Directional Survey: Yes 0 No ^ 19. Water Depth, if shore: NA et MSL 20. Thickness of Permafrost: 1676 21. Logs Run: LWD -- Quad Combo 22. CASING, LINER AND CEMENT G RECORD WT. PER DE SETTING DEPTH MD SETTING DEP H TVD HOLE SIZE CEMENTING RECORD AMOUNT CASING FT GRA TOP BOTTOM TOP BOTTOM PULLED 10.75 45.5 L-80 0 2563 ~ 0 2024 a 13" 7.625 29.7 L-80 0 6696 0 3578 9-7/8" 23. Perforations open to Production (MD +TVD of Top and B ttom 24. TUBING RECORD Interval, Size and Number; if none, state "none"): SIZE DEPTH SET (MD) PACKER SET (MD) Slotted Liner from 6,696' MD + 3,578' TVD to 12,711' M + 3,599' TVD. 3.5 6560 na n ~ 25. ACID, FRACT URE, CEMENT SQUEEZE, ETC. / ~~ DEPTH INTERVAL (MD) AMOUNT AND KIND OF MATERIAL USED a~ b y ^1 26. PRODUCTION TEST Date First Production: 2/s/2oo7 Method of Operation (Flowing, gas lift, etc.): ESP Date of Test: 2/10/2007 Hours Teste : 78 Production for Test Period OiI-Bbl: 5280 Gas-MCF: 359 Water-Bbl: 445 Choke Size: 128!64 Gas-Oil Ratio: 72 Flow Tubing Press. ~ 42 Casing ress: 0 Calculated 24-Hour Rate -• Oil-Bbl: 2034 f Gas-MCF: 145 Water-Bbl: 0 Oil Gravity -API (corr): 19.2 27. CORE DATA Brief description of lit ology, porosity, fractures, apparent dips and presence of oil, gas or water (attach separate sheet, if necessary). Submit core chips; ' none, state "none". NONE i r _, _,. - _ "I+MK ......~ _._... _ ..... Form 10-407 Revised 12/20030 [~ ~ ~ ~ ~ p ~NTINUED ON REVERSE 28. _ GEOLOGIC MARKE 29. FORMATION TESTS NAME ND Include and briefly arize test results. List intervals tested, and attach Base Permafrost 1, 1' 1,729' detailed supporting a as necessary. If no tests were conducted, state Ugnu 4,252' 2,775' "None". L. Ugnu 5,046' 3,112' Upon reaching TD, a 3 1/2" slotted liner was successfully run to TD. The Schrader Bluff 9 7/8" Int. Borehole 5,663' 3,353' well was then pumped with a downhole pump and cleaned up quickly. Schrader Bluff N Sand (Int. Boreh) 5,903' 3,440' ~' Schrader Bluff OA Sand (Int. Boreh) 6,609' 3,571' "OA" 24 Hour Test on ESP, FTP 142 on 128/64th chk, 2034 bopd, 0 bwpd, OA Sand-Lateral 8532' 3,577' 145 mcfd, gor 72, API 19.2, gg = .593, .05% C02, o ppg H2S OA Sand-Lateral 8728' 3,583' Base OA Sand-Lateral 10,655' 3,616' Base OA Sand-Lateral 10,865' 3,616' TD-OA Sand-Lateral 12,711' 3,599' 30. List of Attachments: at the foregoing is true and correct to the best of my knowledge. Contact: l,n .~:+;_, 31. I hereby certify t h ~ Title: !'; c.7'T~L;S 1~~2==~"L=~i'~ f+~-1NAlie'~ - ~r:r'(-SKI- Printed Name: ' /Cf~~~~ ~1. ~+ I Signature: ,~ , .~'^' Phone: ~ ~~G) " ~ ~ ~~~ Date: 3 ~, ~ ~;~ 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 Injection, Observation, or Other. Multiple completion is defined as a well producing from more than one pool with production from each pool completely segregated. Each segregated pool is a completion. Item 4b: TPI (Top of Producing Interval). Item 8: The Kelly Bushing elevation in feet above mean low low water. Use same as reference for depth measurements given in other spaces on this form and in any attachments. Item 13: The API number reported to AOGCC must be 14 digits (ex: 50-029-20123-00-00). Item 20: True vertical thickness. Item 22: Attached supplemental records for this well should show the details of any multiple stage cementing and the location of the cementing tool. Item 23: If this well is completed for separate production from more than one interval (multiple completion), so state in item 1, and in item 23 show the producing intervals for only the interval reported in item 26. (Submit a separate form for each additional interval to be separately produced, showing the data pertinent to such interval). Item 26: Method of Operation: Flowing,'Gas Lift, Rod Pump, Hydraulic Pump, Submersible, Water Injection, Gas Injection, Shut-in, or Other (explain). Item 27: If no cores taken, indicate "none". Item 29: List all test information. If none, state "None". Form 10-407 Revised 12/2003 - TVD Surf KOP = 300' 500' BUR < 6°/100' 1000' 1500' 2000' - 2375' ~' 2750' -~ 3125' --• 3500' -- 3875' Pad Elev = 12 ft GL to RKB = 4J_S Rig RKB = 53 ft 13" Hole 10-3/4", 45.5#, L-80, BTC-M 2563' MD / 2024' TVD Tubing Deployed ESP In Tangent section (6,400' - 6,650') at 85° OPI-2 (Schrader Bluff Horizontal) ,~~ ESP Running Ordar r•np _ downl• • Landing joint • 4-1/2" Tubing Hanger w/ CL Port 8 Penetrator • 4-1/2" x 3-1/2" Cross Over Pup Joint • 200 Jts of 3-1/2" IBT Tubing • 3-1/2" IBT Pup Joint • Ha/ib n 3-1/2" X Nipple @ 6358' • 3-1/2" IBT Pup Joint • 1 joint of 3-1/2" IBT Tubing • 3-1/2" IBT Pup Joint • H Oa iburton 3-1/2" XN Nipple @6403' • 3-1/2" IBT Pup Joint • 2 jts of 3-1/2" IBT Tubing • Centrilift's ESP assembly: Top at 6485' MD • n rill 'Pump Mate Gauge with Centralizer: Bottom at 6543' MD 7 5/8" Baker Liner Hanger & Packer Assembly Top @ 6,590' MD and 3'/z" Blank Pipe to 6,710' MD ~~'~ - - - - - 3-1/2" li.3ik L-80 EUE Slotted Liner ~ I ` ` ~ " : , :` ; ~ 6-1/2 Hole, OBM "~~~ ~~, ~~~,~~~' 12,711' MD / 7-5/8", 29.7#, L-80, BTC-Mod Pilot Hole 3,599'TVD 6,696' MD / 3 578' TVD 6,715' MD / 3,699' TVD ' DRM 2/05/07 OPERATOR: FIELD I WELL: WELL SKETCH: K~ KERR McGEE OIL a GAS CORPORATION PI-2 (Schrader Bll,tf Horizontal) Final Comp DRILLMG RIG: (RKB: 53') COMPLETION RIG: LEASE: API NUMBER: __ .-~ s_. c re 7tu sK t/l_1H d91 t' A KOp; VERTICAL deg Q 250 RKB MAK DEV: 80.00 deg @ 7,000 RKB DLEG SEV: dsg Q RKB DEV (~ PERFS: 90.00 deg @ 7.000 RKB RET to VERT: deg Q RKB DRN-ERIC 1 COMPLETION FLUID DRILLING FLUID: 9.90 ppg SBM DRILLING FLUID: COMPLETION FLUID: 9.05 ppg J % NCI COMPLETION FLUID: 9.90 ppg SBM PACKER FLUID: ppg " TrWre OO ~.~ O wM/r DATA Grade TMeW TVB MD TOC DRIVE PIPE 16.000 ~ 75.250 ' 85.00 L-80 PE 115 115 CONDUCTOR - j J SURFACE ! 10.750 { 9.950 ~ 15.50 L•80 ~ BTC ' 2,021 1 2,589 85 INTERMEDIATE I i ~ { PRODUCTION 7.825 ~ 8.875 ~ 28.70 L-BO BTC f 9,578 8,898 5,000 PROD LINER (slotted 9.500 i 2.992 9.50 L-80 IBT j 9,598 + 12,700 ~ WA PROD LINER { ~ 1 PROD TIEBACK 1 1 I 1 TUBING ~I 3.500 ' 2.992 ~ 9.90 y L-80 j IBT 9.581 ; 8,185 TUBING ~ i j R i _ TUBING I ~ I I EOLNPMENTDESCRIPTION ID OD DEPTH ND-RKB DEPTH~~~" MD-RKB ;i TOP OF TUBING HANGER WITH BIW PENETRATOR 8 PACKOFF TO• i6~ 4M O1WE PpE 15.260 1x000 115 /1S KICK OFF POINT @ 300' 300 300 CANNON CABLE CLAMPS 1 ACROSS EACH JOINT 5.030 -_ _ 3 1/2", 9.3#, L-80, IBT TUBING 2.992 3.500 _,_ _. __. _- _ _.._ ____ _ 10 3fC 463017 L-1" 8TCa10D. R-2 ERW CASING --- -- -- -9.950 10.750 2.024 2,563 _ TOC @ 5,000' _. ___ 3.095 _ 5,000 _ 3 1/2" HALLIBURTON "K" NIPPLE (2.813" Profile) 2.813 4.260 3,550 6,358 3 112" HALLIBURTON'KN' NIPPLE (2.813" x 2.75" No-Go) 2.750 4.260 3.554 6,403 CENTRILIFT ESP ASSEMBLY WITH #1 SS CEBER ROUND CABLE SET IN 5.130 3,561 6,485 85 degree TANGEM SECTION OF HOLE FROM 6400 - 6650' MD 7 5/8" x 3 112" MW HYDRO HANGER WITH LX HYDRO PACKER 4.157 6.750 3,570 6.590 sls :2~.ra Lea src+~oo. Ra, ERw cMTV wrtH pa sx asrs rs2s s,sm x6176 r -2,MINl7R'HOIE 1 1 ~ Schrader Bluff OA Sand 3579 - 3599' TVD ~ SCHRADER eU1Fi HORIZONTAL SECTION (EST. BNP: 1551 psi EST BHT: 90 Da¢eas F) ~ . sus. Ld0. BTA100. sLGrTEO LINER (3I1fT x r x e ablMq (e tR' HOLE) 2.807 3300 3.509 12,700 COMMENTS: PLUG BACK DEPTH: oP9oo•.eun-DRATES4aegraw/7oo' TOTAL WELL DEPTH: 3,599 12,771 - WING NOT TO SCALE (NlEPARED DV: DRM DATE: 02/05/07 Schrader flluff (DPI-2) As Run Completion.xls i Operation Summary R eport ,." - `; - - Well: OLIKTOK POINT I - 2 Project: NORTH SLOPE Site: OLIKTOK POINT Rig Name No: NABORS 245-El245-E Event: DRILLING Start Date: 12/31/2006 End Date: Spud Date: 1/4/2007 Active Datum: KB @52.Oft (KELLY BUSHING UWI: OLIKTOK POINT I - 2 -NABORS 245-E) Date ': Time`'- Dutation .Phase 'Code- Subco -Time M D From Operation: Start-End- hr _ _de2 Code ft _ 11/28/2006 0:00 - 0:00 24.00 MIRU 01 P 08-01-2006 Began refurbishing and preparation for move of rig to Oliktok Point pad for OPI-1. 10-26-2006 Began move off 1J pad location to OPI-1 drill pad. 11-06-2006 Arrived on location at Oliktok Point in prepration to drill OPI-1. 1/1/2007 8:00 - 0:00 16.00 MIRU 01 P 0 Release rig from OPI-1 @ 0800 12/31/06. Rig maintanence and preparation for move to OPI-2. Raised cellar box and cleaned cellar. Dropped hammer head down conductor on OPI-2. No accidents, no reported spills 1/2/2007 0:00 - 0:00 24.00 MIRU 01 P 0 R/D. M/U diverter spool and Hydrill. Move to OPI-2 and spot. Had to re-cut cellar box, would not fit over OPI-1 tree. Set cellar box down. Moved and set ballmill. Continue R/U OPI-2. 1/3/2007 0:00 - 12:00 12.00 MIRU 01 P 0 R/U Water systems/boilers, Continue R/U and battle against freezing temperatures and resultant frozen pipes, hoses and equipment. See remarks for details. 12:00 - 0:00 12.00 MIRU 01 P 0 Weld cement return fittings on conductor pipe. R/U diverter. Extreme cold temperatures have hampered progress. Multiple frozen pipes/hoses. 1/4/2007 0:00 - 18:00 18.00 MIRU 08 A U 0 Repair frozen centrifuge, readjust & NU diverter line. Thawing and repairing frozen pipes and hoses. Recovering from and dealing with extreme cold. Change out boots on flowline. Make repairs to shakers & rebuild centrifuge. Function test diverter & Koomey system test. 18:00 - 22:00 4.00 MIRU 19 A T 0 MU 11 1/2" fishing magnet 8 Make several attempts to recover lost #16 hammer. Recovered piece of conductor pipe (cut out from valve installations ). Still not able to use mud pumps. Thaw out charge pumps & lines & blow down mud pumps. Thaw out top drive IBOP valve & blow out ice blockage " 22:00 - 23:00 1.00 MIRU 04 A P 115 Break circulation slowly & check rig for leaks 23:00 - 0:00 1.00 MIRU 19 A T 115 Wash & rotate down to 115' & work magnet. POOH. Recovered hammer head. No accidents or pollution reported 1/5/2007 0:00 - 1:00 1.00 DRLSUR 19 T 0 "Accepted Rig @ 0001 hrs " Recover Hammer head on fishing magnate & LD fishing tools 1:00 - 3:00 2.00 DRLSUR O6 D P 0 Hold prejob safety mtg 8 PU 13 1/2" Bit (HTC MX 1 ), 8" motor. Change bend to 1.83 deg. Orient tool & PU 12" IBS & UBHO sub. 3:00 - 4:00 1.00 DRLSUR 10 D P 40 RU Sperry Gyro sheave in derrick 4:00 - 6:30 2.50 ,DRLSUR 08 A T 40 MU stand 5" HWDP & attempt to function top drive. Rack back stand 8 repair top drive. MU stand & attempt to circulate. Work on priming pumps 8 thawing out rod cooling systems. 2/22/2007 10:03:09AM US AI ASKA , _ ` ~~ Operation Sum mary Report - _ - . - . , _. ~„ ~ _ . ~ _.. _ r . . ~M ,,,. __ ,e .... ~ ... Well: OLIKTOK POINT I - 2 . _ _. Project: NORTH SLOPE Site: OLIKTOK POINT Rig Name No: NABORS 245-E/245-E Event: DRILLING Start Date: 12/31/2006 End Date: Spud Date: 1/4/2007 Active Datum: KB @52.Oft (KELLY BUSHING UWI: OLIKTOK POINT I - 2 NABORS 245 E) Date ~ Time f` DuraU4~ ~ ~~ i ~ l P ash ~Qdee ~Subcp ; ~ r ~~ d 2 ~ Ttme ~ Iy1D"Ftom~ ft ~x~~~ Code ~;' _ ~,,~~` ~ ~~6 '~ ~ £~~ ~ ~'~~~ .~> ~~ " ~.y` ~.~~~"' E~ :~ StartEr d .. u _ . . . e ~ _~ .. , 6:30 - 11:00 4.50 DRLSUR 02 A P 115 '* Spud well @ 0630 hrs " Drilling 13 1/2" hole w/ Sperry Gyro surveys f/ 115' to 218' 11:00 - 12:30 1.50 DRLSUR 06 D P 218 Blow down top drive & pull back to HBHO sub & LD same 12:30 - 15:00 2.50 DRLSUR 06 D P 90 PU sperry MWD tools (HIVREG) , FS, & UBHO sub 15:00 - 17:00 2.00 DRLSUR O6 D P 90 Download to MWD tool 17:00 - 18:30 1.50 DRLSUR 06 D P 90 PU 3 flex NM Collars & Jars 18:30 - 19:00 0.50 DRLSUR 10 D P 200 Run Sperry Gyro Survey & Orient toolface 19:00 - 23:30 4.50 DRLSUR 02 B P 218 Drilling & Sliding 13 112" hole f/ 218' to 395' MD WOB 10 k 465 gpm 1200 psi 147 rpm on motor Last survey @ 326' 3.81 deg 311.06 Az Pres mud wt 9.4 ppg Rotating hrs 1.96 Sliding hrs. 3.15 23:30 - 0:00 0.50 DRLSUR 10 B P Attempting to get MWD survey @ report time No accidents or pollution reported 1/6/2007 0:00 - 0:30 0.50 DRLSUR 10 P 395 Unable to get MWD survey. Rack back stand & take Sperry Gyro survey. 0:30 - 0:00 23.50 DRLSUR 02 A P 395 Drilling /Sliding 13 1/2"' hole f/ 395' to 2003' MD 1765' TVD 1608' New hole made in 23.5 hrs. Avg 68.4' hr WOB 20 - 25 K SPP 1700 GPM 482 ROP 120 80 RPM + 127 RPM Motor Mud wt 10 ppg Daily slide hrs 12.38 Daily Rot hrs 3.47 Last survey @ 1900.47' 44.5 deg 299.51 Az No accidents 1 Spill reported 1/7/2007 0:00 - 4:30 4.50 DRLSUR 02 A P 2003 Drilling /Sliding 13 1/2" hole f/ 2003' to 2419' 4:30 - 5:30 1.00 DRLSUR 05 A P 2419 Circ for sample & correlate log w/ geologist to determine secton TD 5:30 - 6:30 1.00 DRLSUR 02 A P 2419 Drilling Sliding 13 1/2" hole f/ 2419' to 2580' TD MD / 2031' TVD 577' New hole made in 5 1/2 hrs Avg ROP 105' hr WOB 20 K SPP 1700 GPM 482 ROP 120 80 RPM + 127 RPM Motor PU wt 150 SO wl 120 Rot wt 135 Mud wt 9.8 ppg Daily slide hrs 1.8 Daily Rot hrs 2.2 Last survey @ 2510.28' 64.51 deg 303.72 Az 6:30 - 8:00 1.50 ~ DRLSUR 05 A P 2580 Circulate hole clean 3 X CBU 100 RPM 585 GPM 2100 PSI 8:00 - 9:00 1.00 DRLSUR OS A T 2580 Attempt POH. Backed out saver sub, UD 2 jts, worked on top drive saver sub. 2/22/2007 10:03:09AM f ~3r US ALASKA ~~ Operation`Su mmary Rep®rt _. ,-~ ~-- --~ ,. ~ , _ ,N _ Weli: ®L1KTC!{ PoiivT I - 2 - Project: NORTH SLOPE Site: OLIKTOK POINT Rig Name No: NABORS 245-E/245-E Event: DRILLING Start Date: 12/31/2006 End Date: Spud Date: 1/4/2007 Active Datum: KB @52.Oft (KELLY BUSHING UWI: OLIKTOK POINT I - 2 -NABORS 245-E) Daie Time Duration Phase Cade Subco Time MD From Operation .~~ ~ ~ ~ `fi del ft Code Start-End r 9:00 - 14:00 5.00 DRLSUR 06 Q P 2520 Wiper trip f/ 2520' to 1120' Hole in good condition. Trip back to bottom. No fill 14:00 - 16:00 2.00 DRLSUR 05 A P 2580 Circ. hole clean. 3 X BU 100 RPM 585 GPM 2100 PSI 16:00 - 19:30 3.50 DRLSUR O6 H P 2580 POOH to MWD ioois 19:30 - 20:30 1.00 DRLSUR O6 H P 150 Down load memory f/MWD 20:30 - 21:30 1.00 DRLSUR 06 H P 150 LD 8" Sperry MWD tools, Motor & bit. Bit - As new condition 21:30 - 0:00 2.50 CSGSUR 12 B P 0 RU 10 3/4" csg tools No accidents or pollution reported 1/8/2007 0:00 - 2:30 2.50 CSGSUR 12 B P 0 Continue RU 10 3/4" csg tools 2:30 - 8:30 6.00 CSGSUR 12 A P 0 Run 62 JTS (2525.15') 10 3/4" # 45.5, L-80 csg w/ BTC Land csg. Shoe @ 2563' MD. / 2022' TVD Top F.C. 2478' 8:30 - 11:30 3.00 CSGSUR 12 B P 0 R/D csg tools. R/U Howco tools. CBU 11:30 - 12:00 0.50 CSGSUR 12 C P 0 PJSM for cement job. Pump 5 bbls water, test lines to 3000 psi. OK. 12:00 - 12:30 0.50 CSGSUR 12 C P 0 Drop bottom plug. Pump 50 bbis Alpha Spacer@ 10 PP9 12:30 - 13:30 1.00 CSGSUR 12 C P 0 Mix and pump 336 bbis (457 sx) type L Permafrost cement at 7 bpm, 400 psi, 10.7 ppg. 20.3 gal/sk, 4.15 cu. ft/sk. 13:30 - 14:00 0.50 CSGSUR 12 C P 0 Mix and pump 47 bbls (228 sx) Premium cement at 4 bpm, 575 psi. Drop top plug. Pump 10 bbis water. 14:00 - 14:30 0.50 CSGSUR 12 C P 0 Displace w/rig pump at 8 bpm, 460 psi. Bump plug w/1500 psi, at 2250 stks. Cal disp was 2301 stks. C.I.P. @ 1430. Approx 100 bbis cmt returns to surface. 14:30 - 18:00 3.50 CSGSUR 12 C P 0 R/D Howco. Back out landing joint and L/D same. 18:00 - 0:00 6.00 CSGSUR 14 P 0 Nipple down Flowline, Knfe v/v"s &Diverter lines & dverter No accidents or pollution reported 1/9/2007 0:00 - 1:00 1.00 CSGSUR 14 P 0 Finish nippling down Diverter 1:00 - 4:00 3.00 CSGSUR 14 P 0 Install Vetco MB 243 Wellhead & test to 5000 psi 4:00 - 22:00 18.00 CSGSUR 14 P 0 Nipple up 3 spools. Nipple back down to wrong alignment of choke 8 kill valves. Turn spools 1 hole & begin nippling up again. Nipple up BOP's 22:00 - 0:00 2.00 CSGSUR 14 P MU Vetco test plug & JT & MU TIW & Grey valve. Fill BOP & stack w/water. Retighten down bell nipple bolts. No accidents no polution reported. 1/10/2007 0:00 - 1:00 1.00 CSGSUR 14 P Attempt to test BOP's. Leak on choke line. Retighten bolts & Shell test BOP 2/22/2007 10:03:09AM 3 r ~~ ~~ ~~~~~~ Op~ ~~ti+~ n' ~ urnmary R ~p~ ,, _ ~,r, _ Well: OLIKTOK POINT I - _ _ Project: NORTH SLOPE Site: OLI KTOK POINT Rig Name No: NABORS 245-E/245-E Event: DRILLING Start Date: 12/31/2006 End Date: Spud Date: 1/4/2007 Active Datum: KB @52.Oft (KELLY BUSHING UWI: OLIKTOK POINT I - 2 -NABORS 245-E) 'Date `'- ~ 'Time ~ ~`~~ Duration ~ Phase ~ , "-Code ~ ~ ~ ~ Subco ~ T(me I MD From ~ ~~ ~ r~~; ,~. : ' OperatioiT ~ ~~ ,~ . _ Start-End ! - _ hr _ ~ de2 Code i ft ~ ~ . ~ ~ ~'~`~~' ~; 1:00 - 8:00 7.00 CSGSUR 15 P 0 Test BOP's F/ Driller Panel *** John Crisp , AOGCC, notified 1/8!07 @ 1930 hrs & gave permission to test BOP's. without AOGCC agent present. All tests charted. Tested 5" pipe rams, VBR rams, blind rams & Annular to 250 / 3000 psi for 5/5 min Tested 16 v/v's on choke manifold, Manual choke & kill & HCR v/v's to 250 / 3000 psi for 5 / 5 min. Tested 5" TIW, 5" Grey v/v,Upper & Lower top drive IBOP's to 250 / 3000 psi for 5 / 5 min 8:00 - 9:00 1.00 OTHER 15 D P 0 Pull Vetco test plug & set wear bushing 9:00 - 12:00 3.00 OTHER O6 D P 0 RU bails & elevators, Blow down Top Drive & Choke manifold & pull out strip o matic. LD 8" BHA 12:00 - 16:00 4.00 OTHER O6 D P 0 Hold PJSM. PU 9 7/8" Bit (MXL-IV ). Sperry Motor w! 1.5 deg bend, 9 1/2 "IBS, Sperry Sun MWD tools. Distances f/ bit : GR 48' RES 56' PWD 64' DEN 83' ACAL 93' NEUT 97' Sonic 122' 16:00 - 19:00 3.00 OTHER O6 D P 150 Download to MWD. Hold PJSM R load Nukes 19:00 - 21:00 2.00 OTHER 06 D P 150 Continue TIH w/ NM Flex DC's, 3 HWDP, Jars, 26 HWDP, 9 7/8" Ghost reamer @ 1137' 21:00 - 21:30 0.50 OTHER 08 A T 1140 Unable to operate top drive. Repair Glycol pump 21:30 - 22:00 0.50 OTHER 05 A P 1140 Shallow test MWD. Blow down top drive 22:00 - 23:30 1.50 OTHER 06 D P 1140 Continue TIH, Picking up 36 Jts 5" DP 23:30 - 0:00 0.50 OTHER 15 P 2300 RU & test csg to 2500 psi for 30 min No accidents or pollution reported 1/11/2007 0:00 - 1:30 1.50 DRLIN1 14 P 2300 Tesl 10 3/4" csg to 2500 psi for 30 min 1:30 - 3:30 2.00 DRLIN1 09 P 2300 Slip & cut 100' drill line 3:30 - 4:30 1.00 DRLINI 07 P 2300 Service top drive, blocks. service & reset COM 4:30 - 6:00 1.50 DRLIN1 25 P 2300 Tag Plugs on top FC @ 2475'. Drill out FC, & firm cmt in shoe track. Drill shoe @ 2563' & clean out rathole to 2580' 6:00 - 6:30 0.50 DRLINI 02 A P 2580 Drill 15' new 9 7/8" hole f/ 2580' to 2595' 6:30 - 7:30 1.00 DRLINI 05 A P 2595 Circulate & even mud wt to 9.5 ppg for LOT 7:30 - 8:00 0.50 DRLINI 05 A P 2575 Perform LOT@ 10 3/4" shoe Max press. 550 psi EMW = 15 ppg at TVD 2022' w/ 9.5 ppg mud 2.5 bbls pumped w/ rig pump 8:00 - 10:00 2.00 DRLIN1 02 A P 2575 Drill 9 718" hole f/ 2750' 10:00 - 11:00 1.00 DRLINI 08 A T 2747 Repair standpipe bleed off valve. 11:00 - 0:00 13.00 DRLINI 02 A P 2747 Drilling 9 7/8" hole f/ 2750' to 3694 ' MD / 2524' TVD 1114' New hole made in 15.5 hrs Avg 72' hr WOB 7 - 15 K TO 2500 SPP 2000 GPM 550 Inst. ROP 160 80 RPM + 130 RPM Motor PU wt 175 SO wt 125 Rot wt 125 Mud wt 9.4 ppg Avg BG 24 units Daily slide hrs 2.8 Daily Rot hrs 7.2 Last survey @ 3654.05' 64.08 deg 305.05 Az No accidents or pollution reported 2/22/2007 10:03:09AM a 5 ~ ~.-. ~~A~s~ - } ~e ~ Operatio - n Summary Report Well: OLIKTOK POINT I - 2 Project: NORTH SLOPE Site: OL-KTOK POINT Rig Name No: NABORS 245-E/245-E Event: DRILLING Start Date: 12/31/2006 End Date: Spud Date: 1/4/2007 Active Datum: KB @52.Oft (KELLY BUSHING UWI: OLIKTOK POINT I - 2 NABORS 245 E) " ; b te Time D P.Fiase x 3C uratwn ode ` ~ Subco iTime MD j=rom~ ~§~~,~ ~`~Opetaxio0 x ~ s~ ^~~; ~~ , a _ Start End . : ~, . Fir ~ ~_ ;.~ .;c« ` ~ -~ , ,; del . Cods ~ ; r ft ..... ~~~ s ~~ `~~^ ``~~'~,~°~`.'~~'u ~ ~`~ ~~~: ~ x?^ ~ ~ ~ , . ,. 1/12/2007 0:00 - 6:00 6.00 DRLIN1 02 P 3694 A Drilling 9 7/8" hole f/ 3694' to 4125' MD. 431' New hole made in 6 hrs Avg ROP 72.5' hr WOB 8 -12 K TO 2500 SPP 2300 GPM 550 Inst. ROP 160 80 RPM + 130 RPM Motor PU wt 190 SO wt 120 Rot wt 140 Mud wl 9.6 ppg Avg ECD 10.06 ppg Avg BG 10 units Daily slide hrs 2.75 Daily Rot hrs 19.6 No accidents or pollution reported 6:00 - 0:00 18.00 DRLINI 02 A P Drilling 9 7/8" hole f/ 4125 to 5435' MD / 3222' TVD. Avg ROP 72.5' hr WOB 8 -12 K TO 2500 SPP 2300 GPM 550 Inst. ROP 160 80 RPM + 130 RPM Motor PU wt 190 SO wt 120 Rot wt 140 Mud wt 9.6 ppg Avg ECD 10.06 ppg Avg BG 10 units Daily slide hrs 2.75 Daily Rot hrs 19.6 Last survey @ 5398.03' 67.45 deg 302.59 Az No accidents or pollution reported 1/13/2007 0:00 - 14:00 14.00 DRLIN1 02 A P 5435 Drilling 9 7/8" hole f/ 5435' to 5590' 14:00 - 14:30 0.50 DRLIN1 07 P Service Top Drive 14:30 - 20:30 6.00 DRLINI 02 A P Drilling 9 718" hole f/ 5590' to 6715' MD / 3699' TVD 1280' new hole made in 20 hrs Avg Rop 64' hr WOB 8 -12 K TO 2500 SPP 2750 GPM 600 Inst. ROP 150 80 RPM + 180 RPM Motor PU wt 220 SO wt 115 Rot wt 150 Mud wt 9.8 ppg Avg ECD 10.4 ppg Daily slide hrs .75 Total section 6.05 Hrs Daily Rot hrs 13.5 Total section 33.03 Hrs Avg BG 30 units Max BG 921 units Last survey @ 6674.35' 65.65 deg 306.36 Az 20:30 - 23:30 3.00 DRLINI 05 A P CBU x 3 800 GPM, 100 RPM 23:30 - 0:00 0.50 DRLINI 06 H P POOH f/ 6715' to 6315' and pump slug. No accidents or pollution reported 1/14/2007 0:00 - 6:00 6.00 DRLIN1 O6 H P 6315 POOH to MWD tools. Max o'pu1170 K @ 6000' Rest of hole in good condition 6:00 - 10:00 4.00 DRLINI O6 H P 150 Hold PJSM. Pull Nukes & download MWD memory 10:00 - 12:00 2.00 DRLINI 06 H P 150 Rack back MWD tools & LD motor, Stab & Blt. 7 - 7 WT-E-3/16ou1. Clear 8 clean rig floor 12:00 - 15:30 3.50 DRLINI 06 D P 0 RU 8 PU mule shoe & 30 Jts 2 7/8" cmt stinger total 930') RD tbg tongs 15:30 - 16:00 0.50 DRLIN1 07 P 930 Service top drive & rig 2/22/2007 10:03:09AM 5 r~ r~ ., ~ . r ~,.~.... .: - - ," 1.15 ALASKA ~_ Operation Summary"Report Well: OLIKTOK POINT I - 2 Project: NORTH SLOPE Site: OLIKTOK POINT Rig Name No: NABORS 245-E/245-E Event: DRILLING Start Date: 12/31/2006 End Date: Spud Date: 1/4/2007 Active Datum: KB @52.Oft (KELLY BUSHING UWI: OLIKTOK POINT I - 2 -NABORS 245-E) Date "- - Time Duration Phase Code ~Subco Time ' " MD From Operation- ~'~ ~x ~'~~3 ~ ~` sStart-End .., -. ~. u ~ ~-~~~~' hr del- :Code ft ~' 16:00 - 20:30 4.50 DRLINI 06 D P 930 Continue TIH 5" Dp to 6715'. Break circ every 20 stands 20:30 - 21:30 1.00 DRLINI 05 A P 6715 Circ BU. Mud wt 9.8 ppg 12 BPM 1600 psi Hold Cementing PJSM 21:30 - 22:30 1.00 DRLINI 17 P 6715 Set Cement plug # 1 6715' to 5815' (900' ) Test lines to 2500 psi. Pump 20 bbls water Mix & pump 94.1 bbl slurry @ 15.8 ppg (460 sx ) class G premium cmt + .5 % Halad 344 + .2% CFR-3 + .1% HR-5. Yield 1.15 cuft / sk Displace to balance w/ 5 bbls water + 96 Bbls mud 22:30 - 23:30 1.00 DRLINI O6 A P 6715 POOH to 5815' ** While cleaning up Halliburton Pump truck, wiring shorted out rendering truck out of service. Halliburton sending another truck. 23:30 - 0:00 0.50 DRLINI 05 A P 5815 Drop nerf ball &circ BU 12 BPM 1500 psi Aprox 5 bbls cement seen at shakers. 1 First aid reported. No pollution repoorted 1/15/2007 0:00 - 4:00 4.00 DRLIN1 24 C T Continue to circ @ 5815' while waiting on replacement Halliburton pump truck. Hold PJSM 4:00 - 5:30 1.50 DRLINI 17 P Set Cement plug # 2 4915' to 5815' (900' ) Test lines to 2500 psi. Pump 20 bbls water Mix & pump 94.1 bbl slurry @ 15.8 ppg (460 sx ) class G premium cmt + .5 % Halad 344 + .2% CFR-3 + .1% HR-5. Yield 1.15 cuft / sk Pump @ 5 1/2 BPM @ 1250 psi Displace to balance w/ 5 bbls water + 80 Bbls mud @ 10 BPM 5:30 - 6:30 1.00 DRLINI 06 P Pull back 10 stands to 4915' 6:30 - 7:30 1.00 DRLIN1 05 A P Circ. BU 2 bbls cmt seen @ surface 7:30 - 8:30 1.00 DRLIN1 17 P Set Kickoff plug 4296' to 4915' (619' ) Test lines to 2500 psi. Pump 20 bbls water Mix & pump 72.7 bbl slurry @ 17 ppg (409 sx) class G premium cmt + .5 % Halad 344 + .75%CFR-3 + .1% HR-5. Yield 1.00 cult / sk Displace to balance w/ 5 bbls water + 66 Bbls mud 8:30 - 10:00 1.50 DRLINI 05 A P POOH to 4000' &Circ BU 5 Bbls cmt Seen @ surface 10:00 - 12:00 2.00 DRLIN1 06 D P Pump slug, POOH 12:00 - 16:00 4.00 DRLIN1 O6 D P RU tbg tongs & LD 2 7/8" cmt stinger. RD Tbg tools & clean rig floor 16:00 - 17:00 1.00 DRLIN1 15 P Pull Vetco wear bushing & RU to test BOP 17:00 - 21:30 4.50 DRLINI 15 P Test BOP *** John Crisp , AOGCC, notified 1/14/07 @ 1400 hrs 8 gave permission to test BOP's. without AOGCC agent present. All tests charted. Tested 5" pipe rams, VBR rams, blind rams 8 Annular to 250 / 3000 psi for 5/5 min Tested 15 v/v's on choke manifold, Manual choke & kill & HCR v/v's to 250/3000 psi for 5 / 5 min. Tested 5" TIW, 5" Grey v/v 250 / 3000 psi for 5 / 5 min ' Tesedt all Visual & audio alarms OK Valve # 16 (gauge isolation v/v) on choke manifold failed to test. No spares @ rig 21:30 - 23:30 2.00 DRLINI 15 P Attempt to test upper & lower IBOP's on top drive without success. 2/22/2007 10:03:09AM n US ALASKA - `~ _ Oper ati~n'Surrimary Re port =Y Well: OLIKTOK POINT I - 2 Project: NORTH SLOPE Site: OLIKTOK POINT Rig Name No: NABORS 245-E/245-E Event: DRILLING Start Date: 12/31/2006 End Date: Spud Date: 1/4/2007 Active Datum: KB @52.Oft (KELLY BUSHING UWI: OLIKTOK POINT 1 - 2 -NABORS 245-E) Trme ~ Date Duration Phase ~ :C de S bGO Time '` MD 9 t! t Frotn~'' ~, ~ ~~-~ ~"~~ .~~~ ~` ~ erabo~ ?~~a ,~ a~'k'~~~~~' ~ ~ ~~~ ~~~~ 1 2r. g, p ~ x Start End=' °; tr .. ~ c. ~ ~~~.~-_~.~. ~,~~ . , ,~~ ,_ . '~ .. ~' ~~`,..~~~~~ ~` ft ~ ~'~.~ ~-fe2=`, ~Code~ 23:30 0:00 0.50 DRLINI 15 P Set Vetco Wear bushing. While checking on replacement IBOP's 1/16/2007 0:00 - 3:00 3.00 DRLINI 15 P 0 Start of OPI 2 ST 01 Finish testing BOP'S Test Upper & Lower IBOP's on top drive to 250 / 3000 psi for 5 /5 min 3:00 - 4:00 1.00 DRLIN1 15 P 0 RD Test equip & blow down top drive & choke manifold 4:00 - 12:00 8.00 DRLINI 08 A T 0 Rebuilding 2-1/16 10K gauge isolation valve #16 Break out saver sub & Repair gripper die assy on top drive. Pull Vetco WB & Reset Test plug Retest valve # 16 on choke manifold to 250 / 3000 psi for 5 min Pull Test Plug & reset Vetco W8 12:00 - 14:00 2.00 DRLIN1 O6 A P 0 PU Bit (HTC EP5848) Sperry motor w/ 1.5 deg bend, Stab & MWD tools 14:00 - 18:00 4.00 DRLIN1 06 A P 150 Hold PJSM & program MWD tools & Load nukes 18:00 - 20:00 2.00 DRLINI O6 A P 150 Continue running BHA. 3 NM flex DC's, 3 x 5" HWDP, Jars, 11 HWDP, 9 7/8" Ghost reamer @ 684' Shallow test MWD DIR@40' GR@48' RES@56' PWD@64' DEN @ 83' ACAL @ 93' NEU @ 97' Sonic @ 122' 20:00 - 22:30 2.50 DRLINI 06 A P 684 Continue TIH f/ 684' to 3600' Few intermittent cmt stringers f/ 3300' 22:30 - 0:00 1.50 DRLIN1 03 A P Wash down f/ 3600' to 4100' thru cmt stringers & drilling on firm cmt f/ 4100' to 4180' 0 - 15 WOB 550 GPM 2200 psi 60 RPM rotary + 158 RPM on Motor Mud wt 9.5 ppg No accidents or pollution reported 1/17/2007 0:00 - 1:30 1.50 DRLIN1 03 P 4180 Drilling Firm cement f/ 4180' to 4279' Survey taken @ 4229' showed hole start to kickoff on lowside 1:30 - 5:00 3.50 DRLINI 02 A P 4279 Start Sliding to Kickoff f/ old well @ 4279' Drilling 1 sliding 9 7/8" hole f/ 4279' to 4579' MD. 5:00 - 5:30 0.50 DRLIN1 05 A P 4579 Circ BU 5:30 - 7:30 2.00 DRLIN1 08 A T 4579 Pull back 1 sld. Repair Grabber on top drive & modify guide bowl to fit. 7:30 - 0:00 16.50 DRLINI 02 A P 4579 Drilling /sliding 9 7/8" hole f/ 4579' to 5800' MD / 3407' TVD 1521' New hole in 20 Hrs Avg ROP 76' hr WOB 7 - 15 K TO 8500 SPP 2400 GPM 550 Inst. ROP 170 80 RPM + 130 RPM Motor PU wt 205 SO wt 110 Rot wt 140 Mud wt 9.6 ppg Avg ECD 9.9 ppg Avg BG 21 units Max BG 91 units Daily slide hrs 2.55 Daily Rot hrs 8.23 Last survey @ 5749.24' 66.91 deg 305.67 Az No accidents or pollution reported 2/22/2007 10:03:09AM 7 -~ - LASKA = l )S _ _; .. ~ - . . A - .. ~ - -: ~- - Ope ration Summary R eport Well: OLIKTOK POINT I - 2 Project: NORTH SLOPE Site: OLIKTOK POINT Rig Name No: NABORS 245-E/245-E Event: DRILLING Start Date: 12/31/2006 End Date: Spud Date: 1/4/2007 Active Datum: KB @52.Oft (KELLY BUSHING UWI: OLIKTOK POINT I - 2 NABORS 245-E) ~~"Date Time Duration Rhase 'Code 5ubco Time MD From, ! Operation,;- ,ter "'~~ ~ °= ~ Start-End! -.... ~ 6r del Code - (ft) ~ , ~ - ~~,•~ °--~= 1/18/2007 0:00 - 17:00 17.00 DRLINI 02 A P 5800 Drilling 9 7/8" hale f/ 5800' to 6709' MD / 3578' TVD 909' New hole made in 17 hrs Avg Rop 53.5' hr WOB 7 - 15 K TQ 8500 SPP 2600 GPM 550 Inst. ROP 130 80 RPM + 130 RPM Motor PU wt 210 SO wt 110 Rot wt 142 Mud wt 9.8 ppg Avg ECD 10.3 ppg Avg BG 150 units Max BG 1684 units Daily slide hrs 4.5 Daily Rot hrs 7.3 Last survey @ 6598' 85.88 deg 305.29 Az Note: 1430 HRS Spill Drill completed. 17:00 - 18:00 1.00 DRLIN1 05 A P 6709 Top drive overheating. circ & inspect top drive. Problem with blower. Circ & work pipe. 18:00 - 20:30 2.50 DRLIN1 06 B P 6709 Wiper trip to shoe. No hole problems. Max o'pull 40 k 20:30 - 0:00 3.50 DRLINI OS A T 2563 Repair top drive blower No accidents or pollution reported 1/19/2007 0:00 - 2:00 2.00 DRLINI OS A T 2563 Repair Top drive blower motor 2:00 - 5:30 3.50 DRLINI O6 A P 2563 TIH to bottom. No hole problems No fill 5:30 - 6:00 0.50 DRLINI 02 A P 6709 Drill 9 7/8" hole f/ 6709' to 6711' MD / 3581' TVD Last survey 6667.87' 84.16 deg 304.68 Az 6:00 - 8:00 2.00 DRLIN1 OS A P 6711 Circ. 2 x BU 8:00 - 12:00 4.00 DRLINI 06 H P 6711 Pump slug & POOH to Ghost Reamer @ 684' 12:00 - 15:30 3.50 DRLINI 06 H P 684 LD BHA & Excess HWDP f/ derrick 15:30 - 18:30 3.00 DRLIN1 06 H P 150 Hold PJSM. Remove nukes & download MWD memory. 18:30 - 20:00 1.50 DRLIN1 06 H P 150 LD MWD tools, Stab, Motor & Bit. (5 - 5- Wt - 1/4 out - E ) 20:00 - 0:00 4.00 DRLIN1 12 H P 0 C/O Upper 5" pipe rams to 7 5/8" csg rams. Puil Vetco WB & set test plug. Body test to 3000 psi. RU 7 5/8" csg tools No accidents or pollution reported 1/20/2007 0:00 - 2:30 2.50 CSGINI 12 B P 0 RU 7 518" csg tools. 2:30 - 12:00 9.50 CSGINI 12 A P 0 Run 162 Jts (6658' )7 5/8" csg # 29.7 L-80 BTC-M Land csg. Shoe @ 6696' MD / 3579' TVD 7 5/8 Hanger LOP = 35.7' RKB Top of F.C. @ 6611' MD 12:00 - 13:30 1.50 CSGINI 12 B P 6696 RD Franks fillup tool &csg tools 8 RU Cmt head 13:30 - 14:30 1.00 CSGINI 05 A P 6696 Circ BU. Hold cementing PJSM 14:30 - 16:00 1.50 CSGIN1 12 C P 6696 Cement 7 5/8" Csg Pump 10 bbls water. Test lines to 3500 psi. Pump50 bbls Dual spacer @ 11 ppg Mlx 8 pump 89.8 bbls (438 sxs) Premium class G cmt + .5% Halad 344 + .2% CFR-3 + .1% HR-5. 15.8 ppg slurry Yield = 1.15 tuft / sx 5 gal / sk water Displace w/ 295 Bbls Enviromul Mud @ 9.3 ppg Bump Piug w/ 2900 psi Float held OK CIP @ 1600 hrs TOC @ 5000' 16:00 - 19:00 3.00 CSGINI 12 B P 6696 RD csg tools & LD landing Jt. Set 7 5/8" Packoff 8 test to 5000 psi. Set Vetco test plug prior to Laying down 5" DP 2/22/2007 10:03:09AM 8 i ~: - ,, - `. Ope ra#ion=S ummary Report' Well: OLIKTOK POINT I - 2 Project: NORTH SLOPE Site: OLIKTOK POINT Rig Name No: NABORS 245-E/245-E Event: DRILLING Start Date: 12/31/2006 End Date: Spud Date: 1/4/2007 Active Datum: KB @52.Oft (KELLY BUSHING UWI: OLIKTOK POINT I - 2 -NABORS 245-E) Date '-~. Time j Duration Phase Code Subc o .Time MD Froms Operation , . - Sta_rt-End hr del Code ' ft 19:00 - 0:00 5.00 CSGIN1 06 D P 6696 RU & LD 5" DP. Iron roughneck unable to break 5" DP. Tong Tq. sensor @ 40 k to break DP 24 of 180 laid down @ report time Start cleaning Pits for Enviromul Mud 10 % done @ report time @ 2100 hrs Pumped 120 Bbls Diesel down 10 3!4" X 7 5/8 "Annulus for freeze protection @ 1.75 BPM w/ Max 1100 psi Shutdown pressure 550 psi No accidents or pollution reported 1/21/2007 0:00 - 11:00 11.00 DRLPRO 06 D P Laying down 5" DP & Cleaning Pits. LD total 180 jts In 17 hrs Avg 11 jts / hr 11:00 - 19:00 8.00 DRLPRO 26 P C/O saver subs & service top drive. Repairs to iron roughneck. Removing 5" Dp from pipeshed & bring in 4" HT 38 into pipeshed & prepare to PU. Finished cleaning mud pits & prep for Invermul mud Took 4 men total 24 hrs to clean pits 19:00 - 21:30 2.50 DRLPRO 06 D P Start PU 4" HT 38 DP 21:30 - 23:30 2.00 DRLPRO 08 A T Repair /weld broken skate 23:30 - 0:00 0.50 DRLPRO O6 D P Continue PU 4" DP. 60 of 365 joints p/u. Avg 20 jts/hr. No accidents or pollution report 1122!2007 0:00 - 17:00 17.00 DRLPRO 06 D P PU 4" HT 38 DP & rack in derrick. Total 405 jts Filling pits w/ 9.3 ppg Invermul mud. 17:00 - 20:00 3.00 DRLPRO 14 P C/O Upper pipe rams to 4" 20:00 - 0:00 4.00 DRLPRO 15 P Set Vetco test plug on 4" DP & test BOP's Test Annular & upper pipe rams to 250 / 3000 psi for 5/5min Test Upper & Lower IBOP's on top drive to 250 / 3000 psi for 5 / 5min Test Choke manifold v/v's to 250 / 3000 psi for 5 / 5 min 4 of 12 tests done @ report time No accidents or pollution reported 1/23/2007 0:00 - 5:00 5.00 DRLPRO 15 P 0 Finish Testing BOP's Tested all rams & annular to 250 / 3000 psi for 5min each Tested choke manifold, choke & kill valves 8 HCR to 250 / 3000 psi for 5min each Tested 4" TIW, Grey v/v, Upper & Lower IBOP's on top drive to 250 / 3000 psi. Pull Vetco test plug 8 set wear bushing. 5:00 - 7:00 2.00 DRLPRO 15 P 0 Test 7 5/8" Csg against Blind rams to 2200 psi for 30 min Blow down top drive & Choke manifold 7:00 - 12:00 5.00 DRLPRO 09 P 0 Slip 8 cut 100' Drill line & service top drive, blocks & crown. Bolt sheared on tiedown clamp. C/O clamp bolts for drill line 12:00 - 15:30 3.50 DRLPRO 06 D P Arrange Sperry tools in pipeshed & prepare to PU tools Hold PJSM 15:30 - 19:30 4.00 bRLPRO 06 D P PU 6 3/4" GeoPilot & Sperry MWD & Smart tools 2/22/2007 10:03:09AM 9 v_. ~~_ e_ ,~ _ ~-_ _ ' US ALAS KA -- - - z - - ' C}peration`Su mmary Report . " x Well: OLIKTOK POINT I - 2 Project: NORTH SLOPE Site: OLIKTOK POINT Rig Name No: NABORS 245-E/245-E Event: DRILLING Start Date: 12/31/2006 End Date: Spud Date: 1/4/2007 Active Datum: KB @52.Oft (KELLY BUSHING UWI: OLIKTOK POINT I - 2 -NABORS 245-E) °' Daie i Time Duration Phase Code Subco Time MD From Operation '' ~ ~;~ ' d l Cod ft ~ - - ~ ` Start-End hr e e . . . _.y. . . _ 19:30 - 0:00 4.50 DRLPRO 06 D P Uplink to Sperry tools. Hold PJSM & load Nukes, shallow test MWD. Picking up Bat Sonic tool @ report time Distance from Bit Dir = 37' Res = 51' GR = 58' Dens = 70' Neu = 85' PWD = 97 Sonic = 125' No accidents or pollution reported 1/24/2007 0:00 - 1:00 1.00 DRLPRO O6 D P 200 Finsh picking up Hwdp 8 Jars 1:00 - 3:00 2.00 DRLPRO O6 D P 333 TIH to 2700' 3:00 - 4:00 1.00 DRLPRO 05 A P 2700 Test GeoPilot &Geospan signal 4:00 - 8:30 4.50 DRLPRO 06 D P 2700 TIH f/ 2700'. Tagged cement at 6279'. 8:30 - 10:00 1.50 DRLPRO 06 D P 6279 Clean out cement from 6279' to 6610'. 10:00 - 12:00 2.00 DRLPRO 02 A P 6610 Drilling wiper plug and float collar @ report time. No accidents no pollution reported. 12:00 - 13:30 1.50 DRLPRO 10 A P 6695 Change out Geospan 13:30 - 15:00 1.50 DRLPRO 02 A P 6695 Drill shoe @ 6695' and clean out to 6711' 15:00 - 15:30 0.50 DRLPRO 02 A P 6711 Drilled to 6731' and CBU 15:30 - 16:00 0.50 DRLPRO 36 A P 6731 Pertormed F.I.T. to 12# EMW 16:00 - 17:00 1.00 DRLPRO 02 A P 6731 Drilled f/6731' 06802' 17:00 - 19:30 2.50 DRLPRO 10 A P 6802 Tried to get survey 19:30 - 0:00 4.50 DRLPRO 02 A P 6802 Got surveys and drilled f/6802' 07056' No accidents or pollution reported 1/25/2007 0:00 - 5:00 5.00 DRLPRO 02 A P 7056 Drill and survey f/7056' 07373'. 5:00 - g:30 4.50 DRLPRO 10 T 7373 Worked on Geospan, pulled 1 stand and contiued work on Geospan. 9:30 - 0:00 14.50 DRLPRO 02 A P 7469 Drilled ahead (/7469' 08700' Last Survey @ 8564.45 - inc 90.17 - azi 323.54 No accidents, no reported polution 1/26/2007 0:00 - 7:00 7.00 DRLPRO 02 A P 8700 Drilled ahead and surveyed f/8700' 09125'. 7:00 - 13:30 6.50 DRLPRO 02 A P 9125 Drill ahead and survey from 9125' to 9576' 13:30 - 14:30 1.00 DRLPRO 08 A T 9576 Change out 2" valve on mud standpipe manifold and LD 1 stand DP. 14:30 - 17:00 2.50 DRLPRO 02 A P 9576 Drill ahead ans survey from 9576' to 9747' 17:00 - 18:00 1.00 DRLPRO O6 B P 9747 POH to 9140' 18:00 - 18:30 0.50 DRLPRO 24 A W 9140 Waiting on orders for plug back 18:30 - 0:00 5.50 DRLPRO 02 A P 9084 Troughing and time drilling from 9084' to 9140' to get back into pay zone. 1/27!2007 0:00 - 4:00 4.00 DRLPRO 20 U 9100 Could not sidetrack @ 9140'. Pulled up to 9100', troughed f/9100' 09130', time drilled f/9100' 09125'. 4:00 - 0:00 20.00 DRLPRO 20 P 9125 Start open hole sidetrack @ 9125'. Drilled and surveyed ahead 010415' 1/28/2007 0:00 - 4:45 4.75 DRLPRO 02 A P 10,415 Drilled f/10415' 010715". 4:45 - 5:30 0.75 DRLPRO 24 A W 10,715 Stand back and WOO from geology 5:30 - 19:00 13.50 DRLPRO 02 A P 10,715 Started build @10715' and drilled 011920' 19:00 - 19:45 0.75 ^ aRLPRO 23 D T 11,920 Lost power. Worked on generators and SCR. Restored power back to rig. 2/22/2007 10:03:09AM 10 s • _. - _ _ _ _. ~ -_ ~r L`AS - KA ,? _US, - M Operation Summary_ Report Well: OLIKTOK POINT I - 2 Project: NORTH SLOPE Site: OLIKTOK POINT_ Rig Name No: NABORS 245-E/245-E Event: DRILLING Start Date: 12/31/2006 End Date: Spud Date: 1/4/2007 Active Datum: KB @52.Oft (KELLY BUSHING UWI: OLIKTOK POINT I - 2 -NABORS 245-E) ~_. Date Time - Duration Phase `C ode 5ubco Time MD From: ~-- Operation ! ~ ` -~ Start-EnB "_ hr 'del Code (ft r +~ ~'` U. _ 19:45 - 0:00 4.25 DRLPRO 02 A P 11,920 Drilled f/11920' 012222' Last survey 12,172.82 MD, Inc 90.29, Azi 319.69 No accidents, no reported polution. 1/29/2007 0:00 - 4:30 4.50 DRLPRO 02 A P 12,222 Drilled and surveyed f/12222' U12711' TD. ~ 4:30 - 7:30 3.00 DRLPRO 48 P 12,711 CBU X 3 7:30 - 18:00 10.50 DRLPRO 03 B P 12,711 Short trip to shoe @ 6695'. - Back Ream out of hole 18:00 - 18:30 0.50 DRLPRO 07 P 6695 Serviced lop drive. 18:30 - 22:00 3.50 DRLPRO 06 B P 6695 RIH to 12711' 22:00 - 0:00 2.00 DRLPRO 48 P 12,711 CBU X 3. 1/30/2007 0:00 - 1:30 1.50 DRLPRO 48 P 12,711 Continue CBU X3 and work DP. 1:30 - 2:00 0.50 DRLPRO 26 P 12,711 Make up last stand and PJSM 2:00 - 2:45 0.75 DRLPRO 05 B P 12,621 Rig up to disp open hole to new mud, 285 bbl, disp w/18 bbls 2:45 - 12:00 9.25 DRLPRO O6 H P 12,621 Pull 3 stands. Pump pill. 12:00 - 13:30 1.50 DRLPRO 06 H P 12,441 POH to nukes. Had PJSM on nukes, removed same 13:30 - 14:00 0.50 DRLPRO 06 H P 331 POH. LD MWD Tools 14:00 - 15:30 1.50 DRLPRO 42 D P 146 Download MWD and LWD Tools 15:30 - 17:00 1.50 DRLPRO 06 H P 146 POH and LD GeoPilot tools 17:00 - 18:00 1.00 DRLPRO O6 H P 56 Clear floor and lay down geopilot surface tools 18:00 - 0:00 6.00 DRLPRO 01 P 0 RU and run 3-1/2" slotted liner. Put centralizers on top 109 jts tbg. No accidents, no reported polution 1/31/2007 0:00 - 10:00 10.00 CSGPRO 12 A P 6596 Finished running 3-1/2" slotted liner, hanger and pkr. 10:00 - 11:00 1.00 CSGPRO 12 A P 12,711 Set liner hanger and packer @ 6592'. Tested to 1500 psi 11:00 - 12:00 1.00 CSGPRO 12 A P 6624 P/U running tool out of hanger assembly and prep for change over to 8.8 ppg brine. PJSM for pumping operation. 12:00 - 15:00 3.00 POST 05 B P Pump 23 bbls baralean spacer, 23 bbls barascrub spacer and 23 bbls baralean spacer, displace 7-5/8" csg to 8.8 ppg w/3% KCI brine. 15:00 - 18:30 3.50 POST 26 P Clean trip tank and shakers 18:30 - 0:00 5.50 POST 06 H P POH laying down DP. No accidents, no reported polution 2/1/2007 0:00 - 3:30 3.50 POST 06 H P POH. Laying down DP to B.O.T. setting tool 3:30 - 5:00 1.50 POST 06 H P LD B.O.T setting tool 5:00 - 6:00 1.00 POST 06 H P RIH w/DP in derrick 6:00 - 11:30 5.50 POST O6 H P LD 4" DP 11:30 - 0:00 12.50 POST 24 B W Shutdown. WOW. Post drilling rig cleaning. 2/2/2007 0:00 - 1:00 1.00 POST 06 H P Phase 3 conditions lifted. Continue POH Laying down DP and cleaning mud pits, ballmill etc. 1:00 - 2:30 1.50 POST 08 A T Hydraulic leak on Iron Roughneck. Fix and repair same. 2:30 - 6:00 3.50 POST 06 H P Continue POH Laying down DP and mud cleanup. Using three supersuckers. 6:00 - 15:00 9.00 POST OS A T Skate failed on lay down buggy. Repairing same. 15:00 - 18:00 3.00 _ ~ POST 06 H P Continue POH laying down DP to surface. Cleaning pits 18:00 - 19:00 1.00 POST 28 A P Pull wear ring 19:00 - 20:00 1.00 POST 28 A P PJSM, Changed rams in BOP to 3-1/2". 2/22/2007 10:03:09AM 11 US ALASKA ..Operation Summary Report. Well: OLIKTOK POINT I - 2 Project: NORTH SLOPE Site: OLIKTOK POINT Rig Name No: Event: COMPLETION Start Date: 2/2/2007 End Date: Spud Date: 1/4/2007 Active Datum: KB @52.Oft (KELLY BUSHING UWI: OLIKTOK POINT I - 2 -NABORS 245-E) Date Time Duration =Phase ~ Code Subco Time MD From Operation Start-End: hr de2 Code ft 2/2!2007 15:30 - 17:30 2.00 EVALPR 36 A P RU top shieve for power cable 17:30 - 18:30 1.00 EVALPR 36 A P PJSM 18:30 - 20:30 2.00 EVALPR 36 A P RU to run 3-1/2" tubing for pump placement. 20:30 - 0:00 3.50 EVALPR 36 A P PU pump assembly 2/3/2007 0:00 - 3:30 3.50 EVAL 36 A P PU & MU ESP equipment and nipple up assembly 3:30 - 15:30 12.00 EVAL 36 A P RIH with total of 203 jts 3-1/2" 9.3# L-80 IBT tbg, nipple assemblies and ESP assy clamping cable every joint. PU Vetco tbg hanger & MU same into string end of assy @ 6543' MD \ 3566' TVD. 15:30 - 17:30 2.00 EVAL 36 A P Obtain final readings from centrilift gauge. BHP 1640 psi, BHT 79 degrees. RD sheave from derrick. Terminate ESP cable. MU BIW penetrator to end of cable. Wt up 123K, Wt down 93K. 17:30 - 18:30 1.00 EVAL 36 A P Engage penetrator to hanger. Perform continuity checks. Remove bushings. Land out tbg hanger. 18:30 - 19:00 0.50 EVAL 36 A P Lock down hanger. Test hanger to 5000 psi. Install two way check 19:00 - 22:30 3.50 EVAL 36 A P Clean rig & BOP's in prep for ND. 22:30 - 0:00 1.50 EVAL 36 A P ND BOP's No Accidents, no reported polution. 2/4/2007 0:00 - 12:00 12.00 EVAL 36 A P Continue prep to skid rig and RU for testing. Set Vetco wellhead and test tree + void U5000 psi for 15 min. Pull 2-way check, install back psi valve. 12:00 - 0:00 12.00 EVAL 36 A P Finished cleaning and RD of ball mill module, flushed lines and moved same off pad. Continue moving equipment off pad. Returned mud materials to Baroid plant and continue cleaning pits. No accidents, no reported polution. 2/5/2007 0:00 - 12:00 12.00 RDMO 36 P Continue RD to skid rig to standby location and RU surface testing equipment. Prep pumps for stack out. Get tools off rig floor, organize pipe shed, change oil in rig generator. Berm and lay herculite at rig standby location. Blow down all glycol lines. 12:00 - 0:00 12.00 RDMO 36 P RD demob continued. Clean cellar area and pits. Drain drilling side H2O tank and blow down H2o lines & disconnect No accidents, no reported polution. 2/6/2007 0:00 - 2:30 2.50 RDMO 01 P Finished prep for rig move. Rig released at midnight 2/6/07. 2:30 - 5:30 3.00 RDMO 01 P Jack up rig and prep to skid. Hydraulic line fitting broke. 5:30 - 7:30 2.00 RDMO 01 T Repair hydraulic line on jacks. 7:30 - 11:00 3.50 RDMO 01 P Fin jacking rig up. Skid rig on Lampsons from off the wells. 11:00 - 13:00 2.00 RDMO 01 P Finish moving rig. Start RU scaffolding around well head. Clean up rig mats, plywood, and herculite. 13:00 - 17:00 4.00 EVAL 36 A P Finish RU flowline. Run and connect suface electrical cable. 17:00 - 19:00 2.00 EVAL 36 A P Flush lines and tanks with hot diesel. Repair leaks. Pressure test lines to 500 and 2600 psi. 19:00 - 20:00 1.00 EVAL 36 A P Hold prejob operation meeting on well start up. i 2/22/2007 10:05:34AM 1 L ASKA US A Operation Summary Report _~ Well: OLIKTOK POINT I - 2 Project: NORTH SLOPE Site: OLIKTOK POINT Rig Name No: Event: COMPLETION Start Date: 2/2/2007 End Date: Spud Date: 1/4/2007 Active Datum: KB @52.Oft (KELLY BUSHING UWI: OLIKTOK POINT I - 2 -NABORS 245-E) `.Date Time DGration Phase Code Subco Time MD From ~ Zlperation ` ~,~ £ "'~"~ °~ Start-End ~ hr I del Code ft , ~ ~ k ,~:t? 20:00 - 23:30 3.50 EVAL 36 A P Pull BPV from tubing hanger. Finish heat tracing lines. 23:30 - 23:45 0.25 EVAL 36 A P Open well to a closed choke. Record static readings. PIP = 1602 psi, BHT = 78.3, Mtr Temp = 77.2, WHP = 0 psi 23:45 - 0:00 0.25 EVAL 36 A P Start ESP on 20/64th chk with 35 HZ & 26 amps. Fluid to surface in 3 minutes. FTP 26 psi, WHT = 33, PIP = 1544 psi, BHT = 78.4, Mtr Temp = 84.8 Continue well clean up. 2/7/2007 0:00 - 0:45 0.75 EVAL 36 A P Continue well clean up on a 20/64th chk. FTP 144 psi, PIP = 1470 psi, BHT 79 degrees. Increase choke to 22/ 64th. 0:45 - 2:00 1.25 EVAL 36 A P Produce well at 35 HZ, 23 amps on 22/64th chk. FTP 139 psi, PIP 1426 psi. Increase choke to 26/64th chk. Producing 100% water. Cum water recovery 127 bbl. 2:00 - 9:00 7.00 EVAL 36 A P Produce well at 35 HZ, 24.5 amps on 26/64th chk. FTP 157 psi, PIP 1338 psi. Increase choke to 30/64th chk. Producing 82% oil. 9:00 - 11:00 2.00 EVAL 36 A P Produce well at 35 HZ, 25.3 amps on 30/64th chk. FTP 115 psi, PIP 1323 psi. Increase choke to 40/64th chk. Producing 85% oil at 1200 bpd rate. 11:00 - 13:00 2.00 EVAL 36 A P Produce well at 35 HZ, 26 amps on 40/64th chk. FTP 95 psi, PIP 1318 psi. Producing 99% oil at 1250 bpd rate. 13:00 - 16:00 3.00 EVAL 36 A P Produce well at 35 HZ, 25.3 amps on 50/64th chk. FTP 84 psi, PIP 1295 psi. Producing 99% oil at 1300 bpd rate. 16:00 - 17:00 1.00 EVAL 36 A P Producing well at 35 HZ, 25.6 amps on 64/64th chk. FTP 82 psi, PIP 1292 psi. Producing 99% oil at 1300 bpd rate. 17:00 - 0:00 7.00 EVAL 36 A P Producing well at 35 HZ, 26.9 amps on 128/ 64th chk, Switched to separator at 8:30 pm and frequency increased to 37 Hz at 10 pm. FTP 100 psi, PIP 1261 psi. Producing >99% oil at 1550 bpd rate. Cum prod 990 bo, 439 bbl of water & mud emulsion. 2/8/2007 0:00 - 2:00 2.00 EVAL 36 P Continue flowing well on 128/64th chk, 37 HZ, 26.9 amps. FTP 102 psi, PIP 1244 psi, gg = .597, API = 19.2, CO2 = .05%, 1570 bopd, 10 bwpd. 2:00 - 8:00 6.00 EVAL 36 P Flow well on 128/64th chk, 40 HZ, 28.8 amps, FTP 108 psi, PIP 1201 psi, 1737 bopd, 15 bwpd. OBM contamination <1%. Reid Vapor Pressure = .35 psi at 75 degrees. 8:00 - 0:00 16.00 EVAL 36 P Flow well on 128/64 th chk, 47 HZ, 34.6 amps, Mtr Temp 190.6, FTP 124 psi, PIP 1060 psi, 2115 bopd, 0 bwpd, 175 mcfd, 82 GOR. API 19, gg = .593, CO2 _ .05%, Cum Prod 2870 bo, 445 bw & mud. Continue to flow well while waiting on coil tubing. 2/9/2007 0:00 - 3:45 3.75 Continue producing well on ESP at 47 HZ, 34 amps, Mtr Temp 191. FTP 124 psi, CP 42 psi, PIP = 1038 psi. Producing 2120 bopd, 0 bwpd, 174 mcfd, 82 GOR. Schlumberger coil tubing arrived on location at 3:45 am. Hold PJSM. Begin spotting and rigging up equipment. 2/22/2007 10:05:34AM 2 A US LASKA Operation Summary Report Well: OLIKTOK POINT I - 2 Project: NORTH SLOPE Site: OLIKTOK POINT Rig Name No: Event: COMPLETION Start Date: 2/2/2007 End Date: Spud Date: 1/4/2007 Active Datum: KB @52.Oft (KELLY BUSHING UWI: OLIKTOK POINT I - 2 -NABORS 245-E) Date Time Duration Phase Code': Subco Time MD From Aperation ~:"' ~ Start-End hr del Code ft .;: ~.-. <. . -.-°' _ 3:45 - 10:00 6.25 Continue producing well while rigging up coil tubing. At 8:51 am an air line froze off and created an upset in the levels in the separator. The ESP was shut off prior to the well ESD shut in while operations were corrected. The ESP was turned back on at 9:24 am and ramped back up to the pre-shut in mode of 47 HZ. During the shut in the PIP pressure increased from 1030 psi to 1185 psi. Coil tubing finish displacing reel with methanol mixture. 10:00 - 16:30 6.50 Well producing at 47 HZ. 2075 bpd rate. Coil tubing cut line, remove ball, make up connector, perform pull test on connector to 22,000#. MU toolstring and stab lubricator. Test BOP's to 215 & 3000 psi. 16:30 - 19:30 3.00 Open swab valve on tree. TIH with coil tubing at 100' / min. Make PU stops at 3000' and 6000' while SGS and Oilphase are taking surface samples. Lower samplers down to 6420' coil tubing measured depth. Set and wait for clocks to fire detonators to take flowing downhole samples. 19:30 - 0:00 4.50 POOH with coil. Bleed off lubricator. Hold PJSM on breaking down toolstring. Remove first set of samplers (both sets fired and took samples). Install new samplers and downhole gauge into coil tubing string. Stab lubricator and pressure test to 250 & 3000 psi. Open swab valve and start TIH with coil for second set of samples. Well producing on ESP at 120 FTP, 31 CP, 2154 bopd, 0 bwpd, 165 mcfd, with ESP at 47 HZ and 33.9 amps. PIP = 1011 psi. API = 19.4. Cum oil produced 4730 bo. 2/10/2007 0:00 - 3:00 3.00 Continue TIH with samplers on coil tubing. Run to 6420' CT MD. Sit on bottom and allow clocks to detonate samplers. Obtain samples and POOH. 3:00 - 5:00 2.00 Pull into lubricator. Pump 6 bbl McOH into tree to freeze protect. Close swab valve and bleed off lubricator. Break off lubricator and break down tool string. Found that only one of the two samplers detonated and recovered a fluid sample. (Total recovery 3 of 4 samplers recovering flowing fluid samples). 5:00 - 6:00 1.00 Finish securing well. Leave coil rigged up on wellhead. Continue flowing well while securing well. Test data link between Expro data collection unit and the Centrilift BHP gague at 1 sec intervals, ok. 6:00 - 7:00 1.00 Shut in well at the wing valve of the tree at 06:07 am. Bleed off pressure on well test equipment. Final readings on well: ESP Produce on 128/64 th chk, 47 HZ, 33.9 amps, Mtr Temp 187 degrees, FTP 142 psi, WHT 67.8 degrees, CP 26 psi, PIP 996 psi, BHT 81.5 degrees, gg = .59, .OS% C02, 0% H2S, 19.3 API, 0% BS&W or solids. Rate: 2034 bopd, 145 mcfd, 0 bwpd, GOR 71 Cum Prod: 5280 bo, 445 bw & emulsion, 359 mcf SGS analysis on pressurized downhole sample: GOR 72, Bo = 1.000, GG = .648, oil shrinkage = .9903, oil gravity = 19.2, .3% OBM contamination 2/22/2007 10:05:34AM 'US ALASKA ~= ``Operation Summary Rep ort Well: OLIKTOK POINT I - 2 Project: NORTH SLOPE Site: OLIKTOK POINT Rig Name No: Event: COMPLETION Start Date: 2/2/2007 End Date: Spud Date: 1/4/2007 Active Datum: KB @52.Oft (KELLY BUSHING UWI: OLIKTOK POINT I - 2 -NABORS 245-E) Date Time Duration Phase Code (Subco Time MD F rom operation Start-End hr ~ ' del Code ft 7:00 - 0:00 17.00 RU to data header at well with nitrogen and sweep lines clean. Continue RD polyflow lines, and data cables while recording pressure in 1 second intervals. 1 hr SI PIP = 1164 2 hr SI PIP = 1196 3 hr SI PIP = 1225 4 hr SI PIP = 1244 5 hr SI PIP = 1258 6 hr SI PIP = 1269 12 hr SI PIP = 1323 2/11/2007 0:00 - 12:00 12.00 Continue monitoring well for buildup analysis. 24 hr SI PIP = 1377 psi 30 hr SI PIP = 1395 psi Coil tubing arrive on location and begin rig up to TIH and take downhole static fluid samples. 12:00 - 15:30 3.50 Make up samplers to tool string. Stab lubricator. Break circulation through reel with McOH. Pressure test to 250 / 4000 psi. Open wing valve on tree at 14:15 pm. SITP 125 psi. Bleed off and start TIH with coil tubing. PIP at 14:15 pm was 1402 psi prior to TIH with coil. Total buildup time was 32 hrs 15 min. 15:30 - 18:00 2.50 Coil tubing on bottom. Wait on clocks to detonate the samplers. POOH with samplers. 18:00 - 19:00 1.00 To surface with coil. RD tools. Both clocks on samplers fired. Change out and install second set of samplers in tool string. Stab lubricator and pressure test. Start TIH with sample run #2. 19:00 - 0:00 5.00 TIH with sampers to 6420' CT MD. Set on bottom and allow clocks to detonate on samplers. Collect bottom hole samples. PU and start displacing 45 bbls of McOH down reel followed by 60 bbls of diesel while POOH. 2/12/2007 0:00 - 3:00 3.00 RU to pump diesel. Pressure test lines. Pump 80 bbl diesel at 1 bpm / 1330 psi down coil taking returns up coil x 3 1/2" tubing annulus. POOH at 125 fpm with coil while pumping. After BHA was secured in the lubricator, displace reel with nitrogen at 1500 scfm / 2375 psi taking returns to the well test tanks. 3:00 - 9:00 6.00 SD N2 and bleed pressure off reel. Secure tree. Break down coil tubing sampling BHA. Successfully recovered second set of samples. RDMO coil tubing unit. 9:00 - 11:00 2.00 Open tubing to bleed tank in order to run BPV. Small finger stream flow. Bleed off 65 psi cp to zero. Open tubing with 35 psi SITP. RD Vetco and call for lubricator to set BPV 11:00 - 13:00 2.00 Rig Little Red Hot Oil unit to annulus. Pump 60 bbl diesel down backside to freeze protect. Disconnect power lines between VSD and gen sets. 13:00 - 15:00 2.00 RU Vetco lubricator and set BPV in hanger. Secure tree. 15:00 - 18:00 3.00 Disconnect flowline from tree. Hook up hot oil unit and flush surface lines with hot diesel. Hook up vac truck and suction dry. Begin rigging down surface lines. 18:00 - 0:00 6.00 Dismantle tank farm. Continue RD lines and well test equipment. 2/13/2007 0:00 - 0:00 24.00 RDMO 01 P Rigged down and scheduled demob activities. This is the last daily report and includes final costs and cost estimates. Telecommunications to the rig will be removed the morning of 2/15/07. It's been fun! 2/22/2007 10:05:34AM n Memo Ta Tom Maunder AOGCC, Anchorage, AK From: Walter Quay, Mike Stockinger ~ ~ ,._, 1 ~~ Date: February 9, 2007 1 Re: Weekly Update for KMG/Anadarko Oliktok Point Project - Oliktok Point I-2 Confidential February 2, 2007 POH Laying Down 4" DP. Repair Laydown Pipe Skate. Test BOPS February 3, 2007 Complete Testing BOPs. End of Drilling .Phase -Start Completion Phase. RU to run Pump February 4, 2007 RU & TIH with ESP on 3-1/2" Tubing. Land out and test. Clean Stack Start ND BOPs February 5, 2007 Set Well head and tested. Continued preparations to skid rig off well OP I-2. Finished cleaning and RD of ball mill module. Moved same off drill pad. February 6, 2007 RD and prepare to move rig. February 7, 2007 Finished prep and moved rig to standby location. Released rig @ midnight 2/06/07. Cleanup under rig and tontinue RU surface equipment. RU flowline and start ESP. February 8, 2007 Continued to clean up well on ESP. February 9, 2007 Ramp well up to 47 HZ for sustained flow period prior to coil tubing sampling. 1 Memo To: Tom Maunder ~~ AOGCC, Anchorage, AK From: Walter Quay, Mike Stockinger Date: February 2, 2007 Re: Weekly Update for KMG/Anadarko Oliktok Point Project - Oliktok Point I-2 Confidential January 26, 2007 Drilled from 8700' to 9747' Replaced Standpipe manifold valve. POOH to 9125' for Geologic Sidetrack. January 27, 2007 Worked on Troughing for OH sidetrack @ 9140'. Unable to sidetrack. POH to 9125' and sidetrack. Drilled from 9125' to 10,415'. January 28, 2007 Drilled from 10,415' to 12,222' MD January 29, 2007 Drilled from 12,222' to 12,711' TD. CBU X 3. Short trip and back reamed out to shoe. TIH to TD and CBU X 3 January 30, 2007 POH, downloaded MWD and LD BHA. RU and run 3-1/2" slotted liner. January 31, 2007 Completed running the 3-1/2" slotted liner. Set Hanger and packer. Tested back side to 1500psi. Changed fluid in 7-5/8" casing to 8.8 ppg brine. POH, laying down DP. February 1, 2007 POH Laying down DP. LD Baker setting tool. LD remaining 4" DP. WOW - Phase 3. February 2, 2007 POH Laying Down 4" DP. Repair Laydown Pipe Skate. Test BOPs 1 • -~i[a'~^ • Ta Tom Maunder AOGCC, Anchorage, AK From: Walter Quay, Mike Stockinger ~ ~ ~ „^ 1 I~~~ Date: January 26, 2007 ~"V 1 Re: Weekly Update for KMG/Anadarko Oliktok Point Project - Oliktok Point I-2 Confidential January 19, 2007 Complete Top Drive Repair. TIH Drill 6709 - 6711'. Circulate BU X 2. Pooh and LD BHA. CO 7-5/8" Rams and Body test. January 20, 2007 RU and run 7-5/8" casing. CBU and cement with 90 bbls(438 sx) of G @ 15.8 ppg. Displace with Enviromul. Bump plug. Floats Held. January 21, 2007 LD 5" DP. Clean mud pits for Enviromul(MOBM) mud. PU 4° DP. January 22, 2007 PU 4" DP and rack back in derrick. C/O Upper Pipe Rams to 4". Test BOPs January 23, 2007 Complete Testing BOPs. Test 7-5/8" Casing to 2200 psi. Slip & Cut Drill Line. PU Geopilot Rotary Steerable. January 24, 2007 Finish PU BHA and TIH. Test Geopilot. TIH. Drill out shoe and 20' of new hole to 6731'. FIT to 12.0 ppg EMW. Drill 6711' to 7056' January 25, 2007 Drill from 7056' to 8700'. Resolve Geopilot Rotary Steerable Issue. January 26, 2007 Drilled from 8700' to 9747' Replaced Standpipe manifold valve. POOH to 9125' for Geologic Sidetrack. 1 • • Memo To: Tom Maunder AOGCC, Anchorage, AK From: Walter Quay, Mike Stockinger Date: January 19, 2007 Re: Weekly Update for KMG/Anadarko Oliktok Point Project- Oliktok Point I-2 Confidential January 12, 2007 Drill 9-7/8" hole to 5435'. January 13, 2007 Drill 9-718" f/5435 to 6715' MD/ 3699' TVD. Circ 3X BU. POOH a~~,-~'-~`-~ January 14, 2007 Dovvn Load MWD Memory. PU 2-7/8" Cement Stinger &TIH. Set Cement Plug #1 from 6715' to 5815'. POOH to 5815. CBU. ~ 5 Bbls Cement in returns. January 15, 2007 Set Cement P-ug #2 from 5815' to 4915'. POOH to 4915'. CBU ~2 Bbls Cement in returned. Set Cement Plug #3 (KO Plug) from 4915' to 4296'. POOH to 4000'. CBU ~5 Bbls Cement in returns. POOH and LD cement stinger. RU to Test BOP. January 16, 2007 Test IBOPs. Repair failed choke manifold valve & retest same. PU 9-7/8" KO BHA and TIH. Tag Cement stringers from 3300' to 3600' Wash from 3600' to 4100'. Drill cement from 4100' to 4180' Hard cement from 4150'. January 17, 2007 Drill Cement from 4180 to KOP at 4279'. Drill from 4279' to 4575'. Repair Top Drive. Drill from 4575' to 5800' January 18, 2007 Drill 9-7/8" hole from 5800' to 6709'. Top Drive Overheating. Circulate and clean up hole. Wiper trip to shoe. Repair Top Drive. January 19, 2007 Complete Top Drive Repair. TIH Drill 6709 - 6711'. Circulate BU X 2. Pooh and LD BHA. CO 7-5/8" Rams and Body test. 1 ~O~-1 y~ To: Tom Maunder AOGCC, Anchorage, AK From: Walter Quay, Mike Stockinger ~~ ~ Date: January 12, 2007 Re: Weekly Update for KMG/Anadarko Oliktok Point Project - Oliktok Poin ~l ~~-- Confidential January 5, 2007 LD fishing tools. PU 13-1 /2" bit & motor. Repair top drive & thaw out mud pump cooling system & reprime pumps. Drill/slide 13-1/2" hole from 115' to 218'. POOH MU MWD tools & BHA. Drill/slide from 218' to 395' January 6, 2007 Drilling/Sliding 13-1/2" Hole from 395 to 2003' January 7, 2007 Drill 13-1/2" Hole to 2580' MD. Circ. BU X 3. Repair Top Drive Clamp on saver sub. Wiper trip to 1120'. Circ BU X 3. POOH to MWD & download memory. LD BHA. RU 10-3/4" csg Tools January 8, 2007 RU & Run 10-3/4" Csg. RD Csg tools. RU Howco Gementers. Cir & Cement Csg. ~ 100bb1s Cement to surface. RD Cementers. ND Diverter. January 9, 2007 Complete ND Diverter. Install Vetco WH & test to 5000 psi. NU BOPs January 10, 2007 Test BOPS. Install Vetco wear bushing. LD 8" BHA. PU 9-7/8" Bit & BHA. TIH. PU 36 jts of 5" DP. Test CSG to 2500 psi. January 11, 2007 Slip & Cut Drilling Line. Drill Out Shoe Track + 15' New Hole. Circ to condition Mud. LOT to 14.5 ppg EMW. Drill 9-7/8" hole to 2747'. Repair Standpipe valve. Drill to 3694'. January 12, 2007 Drill 9-718" hole to 5435'. 1 • Memo r To: Tom Maunder - _..- v AOGCC, Anchorage, AK From: Walter Quay, Mike Stockinger Date: January 5, 2007 Re: Weekly Update for KMG/Anadarko Oliktok Point Project - Oliktok Point I-1 i -_ Con£dential December 29, 2006 TIH to tag cement plug #3 with bit @ 7262'MD. POOH, PU 2-7/8" cementing stinger. TIH, set plug #4 into surface casing shoe. POOH & LD 2-7/8" pipe. PU 9-7/8" bit & scraper. TIH. /' ~ December 30, 2006 Set EZSV packer & pumped cement on top of plug. Test casing to 1500 psi. -~~C°~~ . Run Kill String. December 31, 2006 Land tubing hanger and test same to 5000 psi. Wash BOP stack prior to ND BOP. ND, NU & pressure test. January 1, 2007 Freeze Protect OP I-1. Released Rig. Prepare to move. Rig Maintainence January 2, 2007 RD & move rig. Spotted over conductor on Oliktok Point I-2 January 3, 2007 Worked to thaw pipes, hoses & equipment. January 4, 2007 Continue to thaw out rig & make repairs to shaker & centrifuge. NU diverter & test same. Make several attempts to fish lost hammer head while continuing to 1 thaw out pumps & top drive IBOP. Break circ & wash down to 115' & POOH with ~~ ~ "-~~~ fish. January 5, 2007 LD fishing tools. PU 13-1/2" bit & motor. Repair top drive & thaw out mud pump cooling system & reprime pumps. DrilUslide 13-1/2" hole from 115' to 218'. POOH MU MWD tools & BHA. Drill/slide from 218' to 395' 1 _. ~' F~ , ~~ A_ ~. ~ ; - ~ -~• `' FRANK H. MURKOWSKI, GOVERNOR . ~ , ~; v _J 5 dLt-~t-t7~R1AT OIL ~ Vrv-7 333 W. 7T" AVENUE, SUITE 100 CO~SERQAiiO1s CO~TISSIO~ ANCHORAGE, ALASKA 99501-3539 PHONE (907) 279-1433 Mr. Michael Stockinger FAx (so7> 27sa542 Drilling Manager Kerr McGee Oil and Gas Corporation 3900 C Street Ste 400 Anchorage, AK 99503 Re: Exploratory, Oliktok I-2 Kerr McGee Oil and Gas Corporation Permit No: 206-144 Surface Location: 2055' FNL &1526' FEL of Sec 5, T13N, R9E, UM Bottomhole Location: 100' FSL & 400' FWL of Sec 30, T14N, R9E, UM Dear Mr. Stockinger: Enclosed is the approved application for permit to drill the above referenced exploratory 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. A weekly status report is required from the time the well is spudded until it is suspended or plugged and abandoned. The report should be a generalized synopsis of the week's activities and is exclusively for the Commission's internal use. All dry ditch sample sets submitted to the Commission must be in no greater than 30' sample intervals from below the permafrost or from where samples are first caught and 10' sample intervals through target zones. In accordance with 20 AAC 25.005(ff , all records, data and logs acquired for the pilot hole must be clearly differentiated in both well name Oliktok Point I-2 PH and API number 50-029-23326-70 from records, data and logs acquired for well Oliktok Point I-2. 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 req ~ d test, contact the Commission's petroleum field inspector at (907) 659-3607 (pager). DATED thi~day of November, 2006 cc: Department of Fish & Game, Habitat Section w / o encl. Department of Environmental Conservation cv/o encl. • XEHIHM~fECQRP~RIITiDN October 3, 2006 Commissioner Alaska Oil and Gas Conservation Commission 333 W 71h Avenue, Suite 100 Anchorage, Alaska 99501-3539 Re: Oliktok Point I-2 Kerr McGee Oil & Gas Corporation Application for Permit to Drill (10-401) ~'~~'E® °~'~ ~ ~ zoos ?~las~Ca tail ~ Cas Cans. Cammissian Qncharage Attached for your review is our Application for Permit to Drill the Oliktok Point I-2 development well located from a gravel pad at Oliktok Point. This original APD is submitted along with one (1) copy and the $100.00 filing fee. The APD packages include form 10-401, a shallow hazard analysis, a comprehensive drilling hazard analysis, drilling program, directional drilling plan, drilling mud program, plats, graphs and diagrams as required. The package includes an "As Proposed" location plat which will be followed by an "as built" plat when available. This application for permit to drill includes a pilot hole that will be drilled through the primary zone of interest, logged with LWD and then plugged back with a horizontal drilled in the zone of interest. A slotted liner will be run in the horizontal, and an ESP completion is planned. Our anticipated spud date for Oliktok Point I-2 is on or about December 1, 2006. The construction of the drilling pad is well underway. If you have any questions or concerns about the APD or the drilling plan, please call me at 339-6341 and I will do my best to address your questions or concerns. Your timely review of our APD and the accompanying data is greatly appreciated. Sincer y, alter Quay ASRC Energy Serv~ es Project Drilling Supt. 3900 C Street (907)-339-6341 Suite 702, Rm 744 Anchorage, AK 99503 . g~_~.-G STATE OF ALASKA ~ ~~ ALASKA OIL AND GAS CONSERVATION COMMISSION ~ ti'Z P ©CT 0 9 2006 fl ERMIT TO DRILL ~ Alaska Oil ~ Gas Cons. Commission 2n aac 2s nn~ /.~~~'` 1a. Type of Work: 1b. Current Wetl Class: Exploratory Q ~ Development Oil 1c. Specify if well is propos Drill Q Redrill ^ Stratigraphic Test ^ Service ^ Development Gas Coalbed Methane ^ Gas Hydrates ^ Re-entry ^ Multiple Zone [] Single Zone [] Shale Gas ^ 2. Operator Name: 5. Bond: Blanket Single Well 11. Well Name and Number: Kerr McGee Oil & Gas Corporation Bond No. _ _ ~~ L1Dt1$'~7~ Oliktok Poin~s.' Z 3. Address: 6. Proposed Depth: ~ 12. Field/Pool(s): ~~ ~ ~n 3900 C Street, Ste 400, Anchorage, AK 99503 MD: 12,802 n/D~ 3,672 Exploration 4a. Location of Welt (Govemmentai Section): 7. Property Designation: Surface: 2055' FNL & 1526' FEL of Section 5, T13N, R9E UM ADL355024 ' Top of Productive Horizon: 8. Land Use Permit: 13. Approximate Spud Date: 750' FSL & 500' EL of Section 31, T14N, R9E UM ADL417493 _ Total Depth: y/Q7 Da ~!D'~'30 100' FSt &~FWL o~ Section~T14N, R9E UM 9. Acres in Pro~p^erty: ~gg@~c ,;~"L~,, ,d~ ~D~'o'a(7 14. Distance to Nearest Property:~{7$~ 9b ~~ 0 4b. Location of Well (State Base Plane Coordinates): 10. KB Elevation 15. Distan o Nearest Well Surface: x- 516753 y- 6,036,577 Zor 4 (Height above GL): 52' feet Within Pool: None 16. Deviated wells: Kickoff depth: ~y eet .ro• 7. Maximum Anticipated Pressures in psig (see 20 AAC 25.035) Maximum Hole Angle: 90 degrees Downhole: 1927 Surface: 1521 - 18. Casing Program: Specifiptions Top -Setting Depth -Bottom Cement Quantity, c.f. or sacks Hole Casing Weight Grade Coupling Length MD TVD MD TVD (inGuding stage data) N/A 16" 65 L-80 80 Surface Surface 80 80 13-1/2" 10-3/4" 45 L-80 BTC-M 2600 Surface Surface .2600 2052 425 sx PF L (314 bbls) Lead 209 sx "G" (41 bbls) Tail 9-7/8" 7-5/8" 29.7 L-80 BTC-M 6802 Surface Surface 6802 3685 515 sx "G" (106 bbls) Tail c~- ~~ ~' ~ ~ ~o ~ 3r ~~ 3bsa 1a8oo 6 ~ ~ 19. PRESENT WELL CONDITION SUMMARY (To be completed for Redrill and Re-Entry Operations) ~~ Total Depth MD (ft): Total Depth TVD (ft): Plugs (measured): Effect. Depth MD (ft): Effect. Depth TVD (ft): Junk (measured): Casing Length Size Cement Volume MD TVD Conductor/Structural Surface Intermediate Production Liner Perforation Depth MD (ft): Perforation Depth TVD (ft): 20. Attachments: Filing Fee Q BOP Sketch Q Drilling Program Q Time v. Depth Plot Q Shallow Hazard Analysis Q Property Plat Q Diverter Sketch Q Seabed Report ^ Drilling Fluid Program 0 20 AAC 25.050 requirements 0 21. Verbal Approval: Commission Representative: Date 22. I hereby certify that the foregoing is true and correct. Contact Printed Name Mr. Michael Stockinger Title Drilling Manager, Kerr McGee Oil & Gas Corporation Signature ~ Phone Z ~` ' V~ `l3 ' ~j ~ l ~ Date / ~ - „~ - O ~j Commission Use Only - Permit to Drill '' // N ~ ~ `~ API Number: ~Z Z33Zl ~d~ Permit Approval See cover letter for other ®~ I~ umber: 7 50- j• o Date: requinements. ~ Conditions of approval : If box is checked, well may not be used to explore for, test, or produce Coalbed methane, gas hydrates, or gas contained in shales: Other Samples req'd: YesQ~ No ^ Mud log req'd: Yes[/~ No^ 3©~ eSi ~~ ~~~v ~'~Q~ -f~-~,~, HZS measures: Yes^ No (,i irectional svy req'd: Yes[]~No^ APPROVED BY THE COMMISSION DATE: / / Q ,COMMISSIONER Form 10-401 Revised 12/2005 4R~G11VA1 ~./ V ~~ Submit in Duplicate ~~~i~ I 0 ~° • • ~rEnx-M~eca~ra~nox Oliktok Point I-2 Drill, Complete &Test Drilling Rig: Nabors 245 Drill, Complete & Test Surface Location: 2055' FNL & 1526' FEL of Section 5, T13N, R9E UM NAD27 X = 516,753.51' Y = 6,036,577.37' or (NAD83 X = 1,656,784.93' Y = 6,036,329.36') Pilot Hole Target 750' FSL & 500' FEL of Section 31, T14N, R9E UM (and Landing/Casing Point) NAD27 X = 512,489' Y = 6,039,374' Z = 3,685' TVD Bottom Hole Location: 848' FSL & 639' FEL of Section 31, T14N, R9E UM Pilot Hole X = 512,346' Y = 6,039,472' Bottom Hole Location: 100' FSL 8~ 400' FWL of Section ~6 3~N ~ Horizontal - ~ X = 508,609' Y = 6,043,948' , ~ Estimated Spud Date: 12/01/06 Operating Rig days: 42 Pilot TD: 6,972' TD: 12,802' TVD: 3,785' TVD: 3,672' Pad Elev: 12 ft DF: 40 ft Geologic Objectives: Schrader Bluff °OA° Sand Mud Program: 13-1/2" Surface Hole (0' - 2600'l~ KCL/Pelvmer Densi Viscosi YP PV ` 10 S. Get APt WfL' Initia{ 9.0 80 -120 35 - 45 13 - 21 10 -15 < 15 Final 9.0-10.0 ` 50-80 15-30 15-23 10-15 6-8 9 7/8~ Intermediate Pilot Hole (2600' -- 6972'): _ w KCL/Polymer Density Viscosity YP PV' pH API WfL CI ...~ 9.0-9.6 ~ 40-60 15-25 9-18 8.5-9.5 <6 50-90 9-7/8" Intermediate Sidetrack "7-5/8 Casing" (4500' - 6802'): KCL/Polymer Density Viscosity YP PV pH API W/L CI 9.0-9.6 40-60 15-25 9-18 8.5-9.5 <6 50-90 W. Quay -- 10/2/2006 Page 1 Oliktok Point I-2 Drilling Permit Program.doc • • 6-3/4" Schrader Bluff Lateral(6802' -12,802'): MOBM Density Viscosity YP PV ES HTHP FL WPS O/W 9.0 - 9.3 . 55 - 80 12 - 20 10 - 20 800 -1100 < 6 50 - 90 80/20 Recommended Bit Program: Bit Hole Size Depth {MD) Footage Bit Type TFA GPM 1 13-1/2 in Surf- 2,600' 2,600' Mill Tooth .75 - .90 450 - 750 2 9-7/8 in 2,600 - 6,972' 4,372' Mill Tooth .50 - .75 400 - 600 3 9-7/8 in 4,500 - 6,802' 2,302 Mill Tooth .50 - .75 400 - 600 4 6-3/4 in 6,802 -12,802' 6,000 PDC .35 -- .45 275 - 350 Casing Program Hole Size Csg / Tb O.D. Wt/Ft Grade Conn Length Top MD / TVD Bottom : MD / TVD N/A 16" # L-80 BTC 80 0/0 80' /80' 13-1/2" 10-3/4" 45.5# L-80 BTC-M 2,600' 0/0 2,600' / 2,052' 9-5/8" 7-5/8° 29.7# L-80 BTC-M 6,802' 0/0 6,802 / 3,685' 6-3/4" 3-1/2 Slotted 9.3# L-80 IBT ~Q9tf~ 6,700 / 3,680 12,802' / 3,672' Cement Program: 6~0 ~~~ Casin Size 10-3/4", 45.5#, L-80, BTC-M Surface Casin at 2,600' MD Parameters Excess from B/Permafrost to Conductor = 125% over gauge hole. Use 25% excess below the B/Permafrost. Shoe track = 85 ft. Cement: 355bb1 Wash 10 bbl water S acer 50 bbl of s acer mixed at 10 Lead 314 bbl, 425 sx of Permafrost L: 10.7 and 4.15 ft /sx Tail 41 bbl, 209 sx "G° mixed at 15.81b/ al & 1.15 ft /sx Tem Casin Point BHST 68° F from offset data Hole Size Plu Back 9-7/8" O.H. From 6 972' -- 4,300' MD Parameters: Excess = 25% i n O.H. over au a hole. Cement: 327 bbl Wash 10 bbl water ahead, water behind to balance OH Plug #1 6,972 - 6,100' MD 107 bbl, 524 sx "G° mixed at 15.8 Ib/gal & 1.15 ft3/sx Tem Plu BHST 97° F from offset wells Wash 10 bbl water ahead, water behind to balance OH Plug #2 6,100 - 5,200' MD 110 bbl, 540 sx "G" mixed at 15.8 Ib/gal & 1.15 ft3/sx W. Quay -- 10/2/2006 Page 2 Oliktok Point I-2 Drilling Permit Program.doc • Casin Size Parameters Cement: 106 bbl • Tem Plu BHST 92° F from offset wells Wash 10 bbl water ahead, water behind to balance OH Plug #3 4,300 - 5,200' MD 110 bbl, 540 sx "G" mixed at 15.8 Ib/gal & 1.15 ft3/sx Tem Plu BHST 85° F from offset wells 7-5/8", 29.7#, L-80, BTC-M Intermediate Casin at 6,802' MD Use 30% excess over OH Volume. Shoe track = 85 ft. Wash 10 bbl water S acer 30 bbl of s acer mixed at 10 Tail 106 bbl, 515 sx "G" mixed at 15.81b/ al & 1.15 ft /sx Tem Casin Point BHST 104° F from offset data Integrity Testing: Test Point: MD / TVD Kick Tolerance Test Tvpe: EMW: 10-3/4" Shoe 2600' / 2052' > 50 bbls LOT 11.0 ppg 7-5/8" Shoe 6802' / 3685' > 50 bbls FIT 10.5 ppg Surveys &MWD: While Drilling: Surface to TD: MWD surveys every 90 to 180 ft IIFR Casandra for magnetic survey verification Mud Logging: Surface Hole [13-1/2"]: Full Service Rig instrumentation: PVT, Flow-Show, gas detectors, H2S detectors as required. ~ Mud loggers from 1200' to casing point: Three sets of washed & dried samples every 60 ft. Sample at 30 ft. intervals in shows or zones of interest. One set of wet samples for paleo analysis ~ on 60' Sample Intervals. Loggers will be collecting isotube samples on 300' intervals and 30' intervals in the OA zone of interest for isotope analysis. W. Quay -- 10/2/2006 Page 3 Oliktok Point I-2 Drilling Permit Program.doc • ;7 Pilot Hole 9-7/8" ~ Full Service Rig instrumentation: PVT, Flow-Show, gas detectors, H2S detectors as required. Mud loggers from casing point to TD: Three sets of washed and dried sample at 30 ft. intervals.. One set of wet samples for paleo analysis on 60' sample Intervals. Loggers will be collecting isotube samples on 300' intervals. Loggers will be collecting isotube samples on 30' intervals in the OA zone of interest for isotope analysis. 9-7/8" Hole - 7-5/8" Casing Full Service Rig instrumentation: PVT, Flow-Show, gas ~ detectors, H2S detectors as required. Mud loggers from casing point to TD: Sample at 30 ft. intervals. One set of wet samples for paleo analysis on 60' sample Intervals. Loggers will be collecting isotube samples on 30' intervals in the OA zone of interest for isotope analysis. Production Hole 6-3/4" Full Service Rig instrumentation: PVT, Flow-Show, gas detectors, H2S detectors as required. Mud loggers from casing point to TD: Three sets of washed & dried samples at 30 ft. intervals in shows or zones of interest. One set of wet samples for paleo analysis on 60' Sample Intervals. Loggers will be collecting isotube samples on 30' intervals in the OA zone of interest for isotope analysis. Evaluation Program: 13-1/2" Surface Hole Open Hole: MWD /LWD: MWD / GR /Res./ Open Hole: Gas Detection, Mud Logging, samples , E-Line: None 9-7/8" Pilot Hole Open Hole: MWD /LWD: MWD /Quad-Combo/ ~ Open Hole: Gas Detection, Mud Logging, samples E-Line: None Cased Hole: 9-7/8" Intermediate Sidetrack "7-5/8 Casina" -Open Hole: MWD /LWD: MWD /Quad-Combo/ Open Hole: Gas Detection, Mud Logging, samples E-Line: None Cased Hole: 6-3/4" Schrader Bluff Lateral Open Hole: MWD /LWD: MWD /Quad-Combo/ Open Hole: Gas Detection, Mud Logging, samples . E-Line: None W. Quay -- 10/2/2006 Page 4 Oliktok Point I-2 Drilling Permit Program.doc • • Cased Hole: Production Test Formation Markers: Formation Tops MD (ft) Pilot TVD ft Pore Pressure si EMW Ib/ al B/Permafrost 2,182 1,850 T/Ugnu 4,902 3,008 M Sand 5,309 3,236 T/SB 6,296' 3,446 N Sand 6,446 3,493 OA Sand 6,800 3,643 1,800 9.0 TD PB1 6,940 - 3,713 Well Control: The casing head will be installed on the 16" conductor pipe. The 21" diverter with 16" Diverter Line will be rigged up for the drilling of the surface 13-1/2" hole and utilized to drill to the casing point in - 500' below the permafrost with the diverter system for secondary well control. At casing point, 10-3/4" surface casing will be set and cemented. It is planned to circulate cement to surface. After setting and cementing the 10-3/4" surface casing, the diverter spool will be replaced with amulti-bowl casing spool. The 13-5/8" (5M) BOP stack will be NU and tested. The intermediate hole section will be drilled with well control equipment consisting of 13-5/8" (5000 psi) working pressure pipe rams(2), blind rams, and annular preventer capable of handling maximum potential surface pressures. BOP's will be tested when installed and then on a weekly basis thereafter. Any ram changes and / or flange "breaks" will be tested before continuing. ~~~~`~~1 The rams, valves and manifold will all be tested to 250 psi low /~~5A8'~si high, the annular tested to 250 psi low / 2 i high, the casing to 2500 psi. 9~~ ~O ~ ~`1 ~~~11 The maximum anticipated Surface Pressure is calculated from extrapolated BHP data recorded at MPU which include a 0.30 psi/ft oil gradient to correct for TVD and a gas gradient of 0.11 psi/ft to surface as required: Nikaitchuq #4, Schrader Bluff BHP = 1927 psi / ~E~ E~c~~ Maximum Surface Pressure = 1927 psi - (3685 ft x 0.11 psi/ft) =X52-1-psT . ~~ 4~1P~S2 13'~'Z s ~ ~~~~~ Disposal of Drilling Waste: • Cuttings Handling: Cuttings generated from drilling operations will be hauled , using super suckers to G & I #3: located on DS-04, Prudhoe Bay, for disposal. W. Quay -- 10/2/2006 Page 5 Oliktok Point I-2 Drilling Permit Program.doc • • Fluid Waste Handling: All drilling and completion fluid wastes will be hauled to 1 R-18 at Kuparuk for disposal. • Sewage (grey/black water): Camp waste water will be hauled to the sewage treatment plant(s) at Kuparuk / Prudhoe Bay /North Slope Borough where it will be treated and injected. H2S: • H2S has not been detected or reported from any of the offset wells that produce from the Schrader Bluff formation. As a precaution, however, H2S monitors will ~ be used at all times in accordance with State Regulations. W. Quay -- 10/2/2006 Page 6 Oliktok Point I-2 Drilling Permit Program.doc • DRILLING AND ABANDONMENT PROCEDURE Pre-Rig Work: 1. Install the cellar and drive the 16" insulated conductor to + 115' RKB. 2. NU the 16" casing head on the 16" pipe (conductor). 3. Ensure the permits are in order. 4. Notify the AOGCC 24 hours prior to spud, diverter function test, and the BOP test. Standard Orders: 1. All personnel must sign in at the camp and no unauthorized personnel are allowed on site. 2. For travel safety and location security, all travelers must sign in/out at the security guard post near the spine road AND sign in/out at the assigned camp. 3. A full opening safety valve (with correct threads) will be kept on the drill floor in the open position at all times and the appropriate hex-wrench will be readily available. 4. Pit drills/kick drills will be conducted one with each crew in each hole section. 5. Slow pump rates will be taken each tour while drilling AND after drilling 1000' of new hole AND after any significant changes in the mud properties. 6. The toolpusher and company man will witness the first ten (10) stands off bottom for all trips. Use the trip tank. Keep a detailed trip sheet. Keep the hole full. Watch for swabbing. Drilling Operations: 1. MIRU Nabors 245, the camps, communications, medic skid, rig instrumentation, directional drilling equipment, LWD equipment, gas detectors, PVT, Flo-Show, etc. 2. N/U Nabors diverter. Configure and function test the diverter system with the AOGCC field supervisor present to witness the test. Surface Hole Section: 3. Take on water and/or mix spud mud. Make sure all solids control equipment if operating at capacity. Test run the pumps, Top Drive, SCR, Draw works, etc. before accepting the rig. 4. Clean out the conductor to 115' P/U 5" drill pipe and rack it in the derrick. P/U 5" HWDP and rack it back. P/U the 13-1/2" Pilot Hole BHA with MWD/GR/RES tools. Prepare to spud. 5. Rotary drill to surface casing point. Control drill if necessary as limited by the solids control equipment, etc. Use Super Suckers and vac trucks to haul off the waste generated while drilling. The planned casing point is a shaley section to be confirmed by the wellsite geologist: ± 2600' MD. 6. At casing point, circulate the hole clean. Make a wiper trip. Pump out to the HWDP, and then finish POOH. L/D LWD tools as required. R/U to run 10-3/4" surface casing. 7. Run and cement the 10-3/4", 45.5# surface casing on mandrel hanger as programmed. After circulating cement to surface, drain and wash out the Diverter stack. 8. Remove the diverter spool.. N/U and test the 13-5/8" BOP's. Test the BOPE to 250 psi / 3®~ 1 S}` psi. Test the annular to 250 psi / 2500 psi. The AOGCC field inspector should witness the BOP test. ~~1~/+1 W. Quay -- 10/2/2006 Page 7 Oliktok Point I-2 Drilling Permit Program.doc • • 9. P/U the 9-7/8" Pilot Hole BHA. RIH to the float collar. Test the casing to 2500 psi on chart for 30 minutes. Drill out the shoe track and 20 ft of new hole. Circulate the hole clean. Conduct a LOT on the 10-3/4" shoe: (LOT expected to be > 12 ppg EMW). Notify the Superintendent of the FIT results before drilling ahead. Intermediate `Pilot" Hole Section: 10. Drill ahead to the OA Target +/-200' of rathole.-- Obtain vertical control of formations of interest 11. At the pilot hole TMD, circulate and condition the hole for P&A of this section. Pull (or pump) out to the shoe and circulate bottoms up. Then finish POOH. L/D LWD tools as required. 12. TIH with Cementing Assembly for P&A of the hole back to the intermediate KOP 13. Mix & Pump the cements plugs as per the cementing program. POOH Intermediate `Sidetrack" Hole Section: 14. RIH with an 9-7/8" bit and the BHA. Clean out cement plug to the KOP of 4500' MD. ~ 15. Sidetrack the well and drill the well to the T1 Landing/Casing Point in the OA. 16. At intermediate casing point, circulate bottoms up x 3. Make a wiper trip to the shoe. Circulate the hole clean. Pull (or pump) out of the hole to run casing. 17. R/U casing tools. Run 7-5/8" intermediate casing to TD. Cement the 7-5/8" casing as programmed. R/D the cementers. Clean the pits. Install and test the 7-5/8" packoff. • Freeze protect the 7-5/8" x 10-3/4" annulus with diesel by pumping down the annulus. Schrader Bluff Lateral Hole Section: 18. M/U 6-3/4" directional drilling assembly with Quad-Combo tool &RIH and drill out the shoe track. Drill 20' of new hole, circulate bottoms up and pull up into the shoe. Perform an FIT to 12.0 ppg EMW. 19. Drill the `OA" lateral as per the attached directional drilling program. Maintain the OBM properties to minimize the PV, surge, swab and ECD while still cleaning the hole. Drill ahead to TMD or as directed by the wellsite geologist. TMD is planned to be 12,800'. 20. At TMD, circulate and condition hole as required. Pump out to the 7-5/8" shoe and circulate bottoms up. Return to TMD and circulate the hole clean. POOH to run the slotted liner. Completion Slotted Liner 21. Run the 3-1/2" slotted liner, Hyd'I HGR and Hyd'I PKR as programmed. Set the Liner HGR ~ and PKR at~+A-~'3'U'' MD. Before disengaging the running tools, test the casing and PKR to t~'1~0 ~~' 2500 psi. Disengage the running tools and pull up above the TOL. ~~ of ~`~t22 Displace the 7-5/8" casing with kill weight brine. POOH/LD liner tools and excess drill pipe. Mob Tanks. Testing and Generator Eauipment • MIRU PowerWell Services / Expro well testing equipment, tanks and flare system. • Spot, set, and berm Centrilift Variable Speed Drive and supporting rental generation package as per the approved layout. Test run the generator sets. W. Quay -- 10/2/2006 Page 8 Oliktok Point I-2 Drilling Permit Program.doc • Run ESP Completion 23. PU and RIH with the ESP equipment while clamping #1 AWG SS CEBER round cable to the 3 %2" 9.3# IBT tbg with Cannon clamps. 24. Check the conductivity of the electric cable every 2,000' and every new splice. Once on bottom, obtain PU and slack off readings. Space out the ESP at the desired setting depth. 25. Confirm the ESP setting depth before landing the hanger. Land the tubing. Lock down screws. Test the tubing hanger / packoff to 2,500 psi. 26. Install a two way check and test to 5,000 psi. ND BOP's and NU up tree. Test tree to 5,000 psi. Pull two way check. Rip Demob /Finish Surface Ria Up and Generator Qperations 27. Once tree is tested, demob the Nabors 245E rig from the OPI-2 location to the stand by location. 28. Finish rigging up and testing the well test equipment / flowline from the surface tree to the choke manifold. Test the remaining lines and equipment to rated working pressure. 29. Ensure that the flare is lit and operating properly. 30. Finish hooking up the surface electrical lines. Open Well /Clean Up /Test Well /Obtain Down-hole Samples 31. Conduct a pre job safety and environmental meeting to review and discuss the upcoming operations. Assign duties for implementation of the well testing. Open the well through the PowerWell Services well test equipment against a closed choke. 32. Open the choke, start the ESP 33. Maintain rate until good oil is seen and measured at surface. Haul off high BS&W fluid to the disposal well and clean oil to CPF3, as necessary, to maintain minimum levels in stock tanks. Maintain copies of load out /run tickets. 34. Once the surface samples indicate that the BS&W has sufficiently dropped to an acceptable level, the cleanup phase is over, slowly ramp the well up to increase the drawdown. as directed by the Kerr McGee completion engineer. 35. Let the well stabilize and have sustained flow rate for 12 hours prior to rigging up the coil tubing unit. 36. Once, PVT Express Lab indicate the oil is clean and representative, prep to rig up Schlumberger coil tubing unit to obtain flowing bottom hole fluid samples. 37. Prior to shutting in the well, rig up Schlumberger 1 3/" I-Coil coil tubing unit on top of wellhead. 38. RU the following Oilphase bottom hole sampling tool string to the bottom of coil tubing. Make sure there is enough lubricator to run the sampling tools in tandem. 39. Take the downhole samples & wellbore distributed temperature log while the well is flowing. 40. Repeat the process for a second set of samples if the first set is determined to be acceptable by the PVT Express Lab. 41. RD coil tubing. Perform BHP Buildup and Obtain Static Downhole Fluid Samples W. Quay -- 10/2/2006 Page 9 Oliktok Point I-2 Drilling Permit Program.doc • 42. Shut off electricity to the ESP. Lock out /Tag out control panel. 43. Shut. in the well fora 72 hour Bottom Hole Pressure Buildup. 44. Monitor until the 72 hour buildup is complete as advised by Kerr McGee reservoir engineer. 45. Rig up Schlumberger 1 3/" I-Coil coil tubing unit on top of wellhead. 46. RU the following Oilphase bottom hole sampling tool string to the bottom of coil tubing. Take the downhole samples. Obtain Wellbore distributed temperature log while the well is static. 47. POOH with coil and samplers. Repeat the process for a second set of samples. 48. Prior to POOH with the second set of static samples, circulate the tubing string with diesel. POOH. Once the BHA is in the lubricator, close in the surface tree, bleed off lubricator, and recover samples and BHP / BHT data. RD coil tubing. 49. Send all samples back to Houston for analysis. RD Well Test Equipment 50. Install Vetco Type "H" back pressure valve in the tubing hanger. 51. Flush through the surface tree and the test equipment with hot diesel. 52. Pump 50 bbl of hot diesel down the backside of the well. 53. RD surface well test equipment while disconnecting the ESP and portable generator equipment. 54. Finish hauling fluid out of the storage tanks. 55. Transport vessels and tanks to the yard for cleaning. Finish RDMO all equipment. Attachments: • "As Proposed° survey plat • .Days -vs- Depth Graph • Frac Gradient Graph • Temperature Gradient Graph • Wellbore Schematics • Wellbore Completion Diagram • Directional Drilling Plan • Drilling Mud Program • Shallow Drilling Hazards Evaluation • Nabors 245 BOP & Diverter diagram • Nabors 245 Choke Manifold Diagram • Wellhead Schematic W. Quay -- 10/2/2006 Page 10 Oliktok Point I-2 Drilling Permit Program.doc __ » >_ 1. COORDINATES SHOWN ARE A.S.P. ZONE 4, ,r,, NAD 83. DISTANCES SHOWN ARE TRUE HORIZONTAL DISTANCES. 2. GEODETIC COORDINATES SHOWN ARE NAD 83. 3. BASIS ~' LOCATIONS ARE D.S. 3R MONUMENTS PER lOUNSBURY & ASSOCIATES. 4. PROPOSED CONDUCTORS ARE LOCATED IMTHIN PROTRACTED SECTION 5, TOWNSHIP 13 NORTH, ~ RANGE 9 EAST, UMIAT MERIDIAN. P- P- 'Y' 6 0 6 .1 6 36 'X' 1 791.9. 1 656 784.93 70'3 '3 .0 "N 70'30'3. "N n 149'51'57.58"W 149' 1' 7.79" S/L 2 0 1' F.N. 0 F.N. . ffs t 1 19'F. 156'F.. STP PAD od OLIKTOK g DOGK ~`~ ~ ~ THIS ,~ Sao ~ s PROJECT o[w ~ SITE • ~pP ~P~ •` OS-3Q ~~~ •. 9~'. os-3o a 18 ~:~1 ~ t5 030 P~ 19 20 21 22 T13N, R9E ~ ~ / VICINITY MAP SCALE: 1" = 1 Mile ~\ ~ N ~~~~ ~~ oP-12 i~ ~ ` i ~ ~ ~- ~~~ OUKTOK ~ ~~ ~ POINT PAD .,` ~ ~ \\ \~ SCALE: o = ~~ 1" 200' `~° r- ~ ~ 3'- ~ ~ i \ ~ ( ~ / \ ~, - ~ /~ ;- ~ ~~~ ~ ` / o ~ I `~ _ ,' ~ I ~/'~,~' sTP (/ ( ~ ~' ~ ~, ~LOUNSBURY ~ \ ~~ ~ ~~ ~~~ OLIKTOK POINT PAD CONDUCTORS OP-I1 & OP-I2 PROPOSED LOCATIONS ADD II.E N0. LK601D668 9/08/06 DRANANC N0: NSK 6.01-d668 PART: 1 of 1 REV: 0 • o~ r OI i ktok Poi nt I-2 Days -v- Depth I I I I I 1 1 I I I I I I I I I I I I I I I - ~ ,- ~ - ~ I I I I I I I I I I I I I I I I I I I " 1 1 1 1 I I I I I I I I 1 I 1 I I I I I I I I I I I I I I I I I I I I I 1 I I I I I I I I I I I I I I I I I I I I I I I I I i I I I I I I I I I I I I I I I I I I I I I I 1 I I I I I I I I I I I I i l I I I I I I I I - ~ I- ~ I- I I I I I I I I I I I I I I I I I I I I I- ~ I- ~- I I I I I I I I 1 1 1 I I I I I 1 1 1 I - ~ I I I I I I I I I I I I I 1 1 I I 1 1 I I I I ; ~- ~ ~- I I I I I I I I I I I I 113-1 /2 I i l l 1 1 1 1 I I I I J _ L J _ L L _I _ L _I _ I I I I I I I I I I I I I I I I I I I I I I I I Hole I I 1 1 1 1 _ I _ 1 _ I _ 1 _ I I I I I I I I I I I I 1 I I I I I I I I I I I _ 1 _ i_ 1 _ I_ I I I I I I I I I I I I I I I I I I I I I I I I _ 1_ J _ L J _ I I I I I I I I I I I I I I 1 I I I I I I I I I J _ L J _ L I I I I I I I I I I I I I I ~ I I I I I I I I I _ L _I _ L _I _ I I I I I I I I I I I I I I ~ f I I I I I I I I _ I _ L _ I _ 1 _ I I I I I I I I I I I I I I I I I I I I I I I I _ 1 _ I _ 1 _ I_ I I I I I I I I I I I I 1 I I I I I I I I I I _ I_ 1 _ L J _ I I 1 1 I I I I I I I I I I 1 1 I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I y - r y - r - -I - r -I - 1I I I I I I I I I 10-3/4" I I I I Casing I I I I - t- '1 - r ~ - ~ ~ ~ ~ I I I I -1 - r y - r ~ ~ ~ ~ I I I I - r y - r -I - ~~ ~ ~ I I I I - I - t - I - + - ~ ~ I I I I - i - I - t - I- I I I I -1- K - i- K - I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I_ I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I 1 1 1 1 I I I I I I I I J _ L J _ L _ L _I _ L _ I _ I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I _ I _ 1 _ I I I I I I i I I I I I I I I I I I I _ 1 _ I_ 1 _ I_ I I I I I I I I I I I I I I I I I I I I I I I I _ I_ J _ L J _ I I I I 1 1 1 1 I I I I I I I I I I I I 1 1 1 1 J _ L J _ L I I I I I I I I I I I I I I I I I I I I I I I I _ L _I _ L _I _ I I I I I I I I I I I I 1 1 1 1 I I I I 1 1 1 1 _I _ L _ I _ 1 _ I I I I I I I I I I I I I I I I 1 1 1 I 1 1 1 I _ 1 _ 1 _ 1 _ I_ I l i I 1 1 1 I I I I I I I I I I I I I I I I I _ I_ 1 _ 1_ J _ I I 1 1 I I I I I I I I I I I I I I I I I 9-7/8" Pilot 1 I 1 1 r - I - Hole I I I I I I I I I I I I I I I I I I I I I I I I r - I - t - I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I t - I- 9-7 /8" H O I e I I I 7_5/8" Casin I I I I I I I I I I I I I - r y - r 1 1 1 1 g I I I i 1 1 1 1 I I I I I I 1 I I I I I - r -I - t -I - I I I I I I I I I I I I I I I I I I I I I I I I - I - r - I - t - I I I I I I I I I I I I 1 1 1 I I I i I i l l I - + - I - + - I- 1 1 1 1 1 I I I 1 1 1 I I I I I 1 I 1 I I I I I - I- + - 1- Y - I I I I I I 1 I I I I I I I I I I I I I -I- I -I- I I I I I I I I I I I I I I I I I I I I I I i I I I I I I I I I I I I I I I I I I I I I I 1 -I- I- I I I I I I I I I I I I I I I I I - I I I I i I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I 1 I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I J_LJ_L I I I I I I I I I I I I I I I I I I I I I I I I _L _I_L _I_ I I I I I I I I I I I I I I I I I I I I I I I I _1_1_1_1_ I I I I I I I I I I I I I I I I I I I I I I I I _1_1_1_1_ I I I I I I I I I I I I I I I I I I I I I I I J_LJ_ I I I I I I I I I I I I I I I I I I I 1 1 1 1 J_LJ_L I I I I I I I I I I I I I I I I I I I I I I I I _L _I_L _I_ I I I I I I I I I I I I I I I I I I I I I I I I _1_1_1_1_ I I I I I I I I I I I I I I I I I I I I I I I I _1_1_1_1_ I I I I I I I I I I I I I I I I I I I I I I I I _I_1 _I_J_ I I I I I I I I I I I I I I I I I I I I I I I I y - r y - r 1I I I I I I I I I I I I I I I I I I I - r -I - t - I - I I I I I I I I I I I I I I I I I I I I - I - t - I - t - I I I I I I I I I I I I I I I I I I I I - t - I- + - I- I I I I. I I I I I I I I I I I I I I I - r y y - I I I I I I I I I I I I I I 1 1 1 1 y - r ti - r I I I I I I I I I I I I I I I I I I I I - r -I - r -i - I I I I I I I I I I I I I I I I I I I I -1- r - I - t - I I I I 1 1 1 1 I I I I I I I I I I I I - + - I - t - I- I I I I I I I I I I I I I I I I I I I I - I- + - I- y - I I I I I I I I I I I I I I I I I I I I _ _ _ _ I I I I I I I I I I I I I I I I I I I I I I I I _ _ _ _ _ I I I I I I I I I I I I I I I I I I I I I I I I _ _ _ _ _ I I I I I 1 6 I I I I 1 1 1 I I I I I I I I I I I I I I I _ _ _ _ _ I I I I I I I I I I -3/4" Hole I I I I I I I I I I I I I I _ _ _ I I I I I I I I I I I I I I I I I I I I I I I I _ _ I I I I I I I I I I I I 1 1 1 1 I I I I I I I I _ _ _ _ _ _ _ I I 1 1 I I I I I I I 1 I I I I I I I I I I I I _ _ _ _ _ _ _ I I I I I I I I I I I I I I I I I I I I I I I I _ I I I I I I I I I I I I I i I I I I I I I I I I J _ L J _ L I I I I I I I I I I I I I I I I I I I I I I I I _ L _I _ L _ I _ I I I I I I I I I I I I I 3-1 /!." Slotted Liner I I I I I I I I I I I 1 1 I I I I _ 1 _ 1 _ 1 _ 1 _ _ 1 _ I_ 1 _ I_ _ L J _ L J _ I I I I I I I I I I I I I I I I I I I I I I I I 1 1 1 1 I I I I I I I I I I I 1 I I I I I I L J _ L I I I I I I I I I I I I I I I I I I I I I I I _ L _i _ L _I _ I I I I I I I I I I I I I I I I I I I I I I I I _ I _ L _ I _ 1 _ I I I I I I I I I I I I 1 I 1 I 1 1 1 I 1 1 1 I _ 1 _ I _ 1 _ I_ I I I I I I I I I I I I 1 I I I I I I I I I I I _ I_ 1 _ L J _ I I I I I I I I I I I I I I I I I i l l 1 1 1 1 y - r y - r I I I I I I I I I I I I - r -I - r - I - I i l l I I I I I I I I - I - t -1- t - I I I I 1 1 1 1 I I I I - Y - I- + - I- I I I I I I I I I I I I - r y - r y - I I I I I I I I I I I -I - r - r I I I I I I I I I I I I - r -I - r -I - I I I I I I I I I I I I -I - t - I - t - I I I I I I I I I I I I - t - I - t -1- I I I I I I I I I I I I - I- Y - I- y - 1I I I 1 i I I I I I I 1 1 1 1 I i I 1 1 1 1 1 1 1 1 1 I 1 I I I I I I I I I I 1 I I I I I I I I I I I I I I I I I I I I I I I I I I I I I Run ES P Comple tion I I I I I I I I I I I I I I I I I I I I I I I I I I 1 1 1 1 -,-j -,-j 1 1 1 1 I I I I I I I I I I I I 1 1 1 1 -j-,__-,- I I I I 1 1 1 1 I 1 1 I 1 1 I I 1 1 1 1 -,-i-,-7- I I I I I I I I I I I I 1 I I 1 1 1 1 -~-~ ~-~ I I I I I I I I I I I I i I I I I I -~ ~-~ ~- I I I I I I I I I I I I I I I I I ~-~ I I I I I I 1 1 1 1 NU Wellhead I I RD Move Rig ~ ~ --- I I I I I I I I I I I I I I 1 1 I I i I I ~ ~ ~ ~ ------- I I I I I I I I I I I I 1000 2000 3000 4000 5000 S ~ 6000 'mow, W L ~ 7000 w~ W ~ 8000 9000 10000 11000 12000 13000 0 5 10 15 20 25 30 Rig Days Oliktok Point I-2 Days -v- Depth Curve.xls 35 40 45 50 10/2/2006 • Offset Wells (Frac Gradient) EMW (ppg) 0 1000 2000 3000 •+ Q m 4000 m iL 5000 6000 7000 8000 10 I ; I ~ ~ I II ~ I I ~ III I II III I ~ II I I 'I ~ _ I _ J _ J _ 1 _ I I 1 I I I I I _ I_ _ I _ J _ J _ I I I _ J~ _ ~_ _ I _ J _ '• ' ~ ~ I I Note: the offset wells in this block _ L _ I_ _ I _ J L - h the Kingak 'were all drilled throu I I I I I I I I I• I I I g I I I I _ I _ _ I _ J _ 1 - I I I I - L _ I _ J _ a _ I I. I I _ L ~I- - I _ J _ I • I I _ L _ L _ I _ _ I /- I I I I sc Sag River with < 11.1# mud. I I I I I I I •I I I I• I I I I - I I I I I I • I I I~ I 1 1 I I I I I I I I I I I I I I I I I I I I I I h I I I 1 I I I I ; I I I I I I I I I I I I ---.-~-r- -r-I_,i~_ -r-r -I ~~- - -r-r-r- -r-r-r-r- -~-T-r-r- --I-,-r-, - -r~-~-r- I I I I I I I I I I I I I I I• I I I I • I 1 I • I I I~ I I I I I I I I I I I I I I I I I I I I I I I I I I I 1 I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I ~ ~ I I I I _I__I_J_L_ I I I • _L _I_J_J~ I I I I• _L _I__I_J_ I I I I _L_L _I__I_ I I I I _1_L_L _I_ I I I I _1_1_L_L_ I I I I _J_1_L_L_ I I I 1 __I_J_1_L_ I I I I I I I• I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I 1 • I I I I I I I I I I I I I I I I I I I I I I I I I I 1 I I I • I I I I I I I I I I I I 1 I I I I I I I I I I I • I I I I / I I I I I I I I I I I I I I I I I I _ I _ _, _ y _ T _ I I I I II I I -r NW Miln _ I_ _I _ _~ _ _ _ I I I I _ _ I _ ~ _ T _ I I I I I I I I e Point. #1 I I I I I I I r _ I_ _ I _ , _ I I I i I I I •-r-I--I- ,• , , , _ .I _I_ _I _ I ~ I I _ r~ r _ I_ _I _ I •1 1 I I T I I -r-~-. -1- , ,• , , _ _ _ _ r _I - I I I• I _ 1 - r - r _ I_ I I I I I I I I -r-r-r-r I I I I _ ~ - ~ I I Thetis Is # _ y _ ? _ r _ r _ 1 1 I I 1 1 I I -~-r-r-r - I I I I I I 1 I '~ I I I 1 _ ~ _ Y _ r _ r _ I 1 I I I 1 I I --I-~-r-r- 1 I I I I I I I I I I I _ _I _ .Y _ Y _ _ I I I ~ I I I --r~-.-r- I I I I I I i - I I I I I I I I I I ~ I 1 I I I I I I I 1 I I 1 I I I I I I I• I I 1 I T I I I I I I I I• 1 I I I• . I I I I I I I I I I I I I I I I I I I 1 I I I I I I I I I I I I I I ~. I I I I I I I I -.--I-Y-r- I I I I - , - -II -I - I - I I I I I I I -r-I-~-~- I I I I I I ;- - I - _I _ - _ ~ I I I I I ~ I r-r -I ~~- I 1 I I I 1 I• r - j - I - ~ - ~• I I I I I I I I -r-r-r-I- I I I I I I I I - r - r - ~ -1- I I I I I I I I I ~T-r-r-r- • I I I I I I I - T - r - r -1- 1~ 1 I I I I I I -~-r-r-r- I I I I I I I 1 - ~ - ~ - r - r - I I I I I I I I I 1 -~-Y-r-r- I I I I I I I I - -1 - ~ - r - r - I I I I I I I I --I-~-t-r- I I I I I I I I - -I - ~ - ~ - ~ - I I I I I I I II I ; II ---;-J-;- I I I I NW Milne Point. #1 I• Joneslsland#1 -J_ I I I I I I , I _L_L_1__I_ I I I •I I I I I I I I I ; I I _y_L.L_I__ I I « I • I I 1 I I I I I I I I I _1_1_L~_OliktokStat I I I I I I I I I I I I I I I I I e#1 ~-1-L- I I I I I I I _I___y_t_ I I _ _I___~_ ~___,_y_ ~ I I I I ___I_ I I I _i_t_N_I__ I I ~ _y_~_r_r. _y_~_~_r_ I I I I Nikaitchuq #2 , __,_y_t_t_ I I I I I -I--I-Y-T- I , , I I I -r , I - Nikaitchuq #1 I -r-I--r ; I , I i I -z-r • , , , ,• I I I• ~ ~ I , I I I I 1 I ~-~-r-r- I I I I I I I --r~-7-r- I I I I I I I ; I I I I MPE -13 I r I I 1 I I I I I 1 1 1 I I I 1 1 I I I I I I I I • I I I I I I • I I I I I I I I I I I I _I_J_J_1_ _L _I_J_J_ L_I_J_J_ _ _y_I_J_ _1_L_L _I__ {I_1_L_L_ _J_1_L_L_ _J_J_1_L_ I I 1 I I I I• I I I I 1 I ~ 1 I I I I I I I I I I I I I I I I I I I I •I I 1 I I I • 1 I I I I I I I I I I ____a_1- -L-I_J_J- L_L _I_~_ _ _L y__I_ _;_!__L-I_ _~•L_L_L__ _~_~_L_L_ __I_~_1_y_ I I 1 I I I I I I I I I I • I I 1 1 I 1 •I I I I I I I I I I I I I I I I I I I I I I I I I• I I I I I I • I I I I I I I I I I _1__1_7_1_ I I I I I -r-I-ti-y- I I I I I I 1 I r-1'-I-y- I 1 1 I I I I 1 - -r _11_1_ I I• I I 1 •I -Y_r-r-I- I I I I I I I I -y-y-r-r- I I• I 1 1 1 •I 1 -~-y-t-h- I I I I I 1 I 1 _-I-~-Y_t- I I I I 1 1 I I I I I I I I -- ----- I I I I _ 1_ _ I _ _I _ I _ I I I I I _ I_ _ I _ _I _ I I • _ _ 1_ _ 1_ _I _• I I I I _ I _ I I 1 ---- I I I• I I I _ I_• I_ _ --- I I I I I I I I --------- I I I I I 1 I _ I _ ----- I I I I I I I I I I I I 1 I I I 1 I I I I I I I 1 1 1• I I I I I I 1 I I 1 I I I I I I I t I I I I I I I I I I I I I I I _I_J_J_1_ I I I I _L _I_J_J_ I I I I L_L _I_J_ I I I I _L _1__I_ - I I I _1_L_L _I_ I 1 I I _J_1_L_L+ I I I I• _ Thetis Is. _J_1_L_ #1 I ~ I I I I 1 I I 1 I I I I I I • I I 1 I I I I I I I -I--I-~-±- -~-i--I- i ; _;~-~-~ 1 2 ~--~- 3 ~~-~-~-~-- -~-±-~-I •~-Oliktok State#1 -; - ~ ~ I I ~ I I I I I I I . I I ~ I I ~ ~ I I I N ~ ~ ~ I I I I I I I I 1 I I I I I 1 • I I I I I I• I I I I I I I I I I I --I__-j- I I I I I I I I -r-I--,- j- 1 I I I I I I I r-r-,--,- I I 1 I - 1 I I -r-~ -,- I I I I• I 1 I _rt-1 -I- I ~ I I I I I I _ ~-r I-r- I I I I I• I 1- I -- -I- 1- I_ I_ --,-~ I I I I I I I 1' I I 1 1 I I I I I I _ _ _ _ _ _ - _ I I I I_ _ - _ _ - 1 _I-_1_ _I- _ I I 1 _ _ _ _ _ 1 ~ I_ I _ - _ I_ I- I _I-_ _ _I_ I• I I I I I _ - _ ! _ _ _ _ - _ _ _ ~ I I ~ I I I I I I I I I I 1 1 I I I I I I I I I~ I I I I I I I I I I I I I I I I I _I I 1 I I I I I I I . I___J_1_ I I I I I _I__I_.l_ I ~ I I I L._I__I_J_ I I I I I I I _L _I___ I I _1_L_ _I_ I I ~ ' _~_1_L_L_ I I I I _J_1_1_L___I_J_1_ _ I I I I I I I I I I I 11 12 13 14 15 16 17 18 Frac & Temp Gradients.xls 9/22/2006 • • Offset Wells (Temperature Gradient) 0 1000 2000 3000 s aooo a d V 5000 d H 6000 7000 8000 9000 10000 40 I I - I - - - ~ - I - ~ - I - ~I - I I - f - I~ - I - I I - t - ~ - I- - I ~ - ~ - : - ~ - I I I I - - I - y - ~ - I I I I ti - I- -I - - - ~ - ~- ~ - I - f - ~ - I - I - i - ~ _ II- I _1_ I I I I I _ _ _ _ _ _ 1 I I I I I _L _I_J_ I I I I I _I_ _ _ _ _ I I I I I 1 _L_L-I_ I I I I I I _ _ _ _ _ _ I I 1 I I I .1_L_ I I I _ I_ I -I_- I I I I I I _J_1_L_ I I I - I_ I I _ _ _ I 1 I I 1 I j J_1_ I I I I 1 I _ _ _ _ _ _ _ I I I I I I I I I _I__I_J_ 1 I I _I__I_ I_ I I I I I I _L-~I_J_ I I I I I I _ _ _ _ _ _ I I I I I I _L_L_ I I I I 1 I _ _ _ _ _ _ I I I I I I _1_L_L I I I - I_ I _I_ I I I I I I I I - _ _ _ y _ I I I _ r _I_ y _ I I I _ r _ r _I_ I I I _ Y _ r _ r _ I I I _ y _ Y _ r _ I I I I I I I I _ y _ Y _ _ r _I_ y _ _ y _ r _ r _ -I - - - r- r- I- I ---- ;- II 1 I 1 -`-;-J- I I I -`-;--;- I I I -1-; -; - I I I -J-; -; Temperature Gradient + 2°/100 ft -~ ~ J ly ~ A~ _i'-'--'- -L-'--'- -~-L_I-- - ~-~-L ----- ------ --- --;- ~ - I I I ~ I I I ~ I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I ~ I I I I I I I 1 I I I I I I I I I I I I I -I--r ~- -r f~- I I -r-r-r I I I -z-r-r- I I I -~-t-r- I 1 I --I-~-r- I I I -I--I-1- I I I -r-I-~- I I I -r-r-r I -~-r-r I I I I i l l I I I I I I I I I I I I I I I I I I I I I I I I - I - - - ~ - - L I- ~` - J - ~ -I - - ' - L - I- - - J - 1 - L - - _I - '~ - + - _ I- _I - J - _ L - I _ _I - - ~" _ L - I - - ' - L I I I I I I~ I I I I I I I I 1 I 1 I I I I I I I I I I I ____1_ _L I_J_ L_L _1_ _1_L_I-_ -J_1_L_ __1_J_1_ _I__I_J_ _L _I__I_ _L_L _I_ _1 L I I I I I I ~ I I I I I I I I I I I I I I I I I I I _ . I I ; ~ Th ' I I etis Is. #1 I I I I I I I I I I I I I I I I I I I I I r I I I I I I I I I I I I I I I I - I - -I - ~ - - r I - ~ - - r - A - I - - 7 - r - I- - - ~ - r - r - -I - 7 ' T - - r -I - ~ - - r - I- -1 - - r - r - I- - ~ - r I I I I 1 i I C I I I I I I I I I I I I I I I I I I I I I - I - - _ ~ - _ F I _ ~ _ _ f _ F ~ _ ~ _ _ I_ _ _ y _ _ F _ _ _I _ i _ } _ _ i_ _I _ .~ _ - F _ 1_ ~ _ _ } _ ~ _ I _ _ ~ _ f I I I I I I I~ I I I I I I 1 I I I I I I I I I 1 _ I _ _I _ 1 _ L I _ J _ _ L _ L _ I _ 1 - • _I _ J _ 1 _ _ I_ _I _ J _ _ L _ I _ J _ _ 1 _ L _ I _ _ 1 _ L I I I I I I I I N I kaitch U q #1 ~ I I I 1 1 I I I I I I I I I I I I I I I I I I I ~ ~ ~ I I I I I I I I I I I I I I I I I I I I I I I , I I I I I I I I I I 1 I I I I I I I I I I I I I I I I I I 1 r I I I I I I I I 1 I I I I I I I I -I--I-~- -r I-1- -r-r-r -T---r- -~-r-r- --I-~-r -r -I-~- -r-I--I- -r-r-I- -~-r- I ----+- I -r I I 1-~- I I I -*-r- - I I ~~ - - I I I - - - I I I I I I I I I I I I I I I I + r ~ * r- I I I --i-y-+- I I I -i--I-y- I I I -r-I--~- I I -r-r-i- -*- - -I-_I_1_ -L I_J_ _L_L _I_ _1_L _I_ _J_1_L_ _I. 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Casing Wear DLS 4°/100' Base Permafrost Top of Tail Cemenl 2 194' 1 862' 10-314" Casing Point 2,600' 2,052' 13-1/2" 68° F Water Based Mud Quad-Combo I IFR/Cas Wellbore Stability Lost Circulation Sail Angles: gg° 9.0-10.0 ppg Hole Cleaning Torque & Drag - Top of Plug 3 4,300' . Casing Sections KOP for OP I-2 4,500' \\\\\\ \ ~ ~\ \\' Ugnu 4,893' 3,020' - Top of Plug 2 5,200' - Top Of Plug 1 6,100' Schrader Bluff OA 6,706' 3,655' Pilot Hole 6,969' 3,785' 9_7/g^ 104° F Water Based W. Quay - 10/2/2006 1 Oliktok Point I-2 Well Bores.xls • ~ ~l1 Oliktok Point- !~errlVtGee Injector #2 DIR I LWD RKB - G 40'), HOLE CASING MUO INFO FORM GL AMSL 12' MWD MD ND SIZE SPECS INFO 16" 65 Ib/R, L-80 115' 115' N/A Welded /Driven WA MWD/GR/RES Surface Csa IIFR/Cas 143/4" KOP:250' 45.5 Ibs/ft Wellbore Stability DLS 2.5°/100' L-80, BTC-M 9~0-10.0 ppg Lost Circulation 450' LD. = a.eso" Hole Cleaning DLS 3.25°I100' Orin = e.7s4'. Casing Sedions Sail Angles: 64o Casing Wear Base Permafrost 2,194' 'em`u' 1,862' Top of Tail Cement DLS 4°/100' 10.31d"Casing Point 2,600' 2,052' 13-112" 68° F Water Based Mud Quad-Combo IIFWCas Int Caa Wellbore Stability 7S/8" Lost Circulation 29.71bs/fl 9.0-10.0 ppg Hole Cleaning L-80, BTC-M Torque 8 Drag I.D. = 8.875" Casing $edions -Top of Cement 5,000' Din = 6.75" 7.518" Casing Point 6,802' 3,685' 9-7/8" 1~° F Water Based Mud Quad-Combo IIFR/Cas Slotted Llner Wellbore Stability 3-1@" Lost Circulation Horizontal interval Schrader Bluff OA 9.316s/ft 9.0-10.0 ppg Hole Cleanirg L-80, IBT Torque 8 Drag I I i i s 3 I 3/18" x 2" x 6 Slots / F Casing Sedioru 3.112" Slotted 12,802' 3,672' 6-3/4" 104° F OII Based Mud W. Quay -- 10/2/2006 Page 1 Oliktok Point I-2 Well Bores.xls - TVD Surf Pad Elev = 12 ft GL to RKB = 40 ft [:: I Rig RKB = 52 ft - r~~ r.. 1 KOP = 300' I ' 1 BUR < 6°/100' L: 1 ' 1 ` 1: 1 - 1000' ' 1 I 13-112" Hole l -' r- 1 I 1 1 ~ I - 1500' 1 3-1/2", 9.3#, L-80, IBT 1 l 1 I 1 1 110-3/4", 45.5#, L-80, BTC-M 1 2600' MD / 2052' TVD - 2000' 1 1 1 1 I I I 1 - 2375' ~ - 2750' ~~; Tubingg Deployed ESP In Tan ent section at 85° - 3125' n ~ - 3500' OPI-2 (Schrader Bluff Horizontal) ,~~ ESP Running Order Itop - downl: • Landing joint • 4-1/2" Tubing Hanger w/ CL Port 8~ Penetrator • 4-1 /2" x 3-1 /2" Cross Over Pup Joint • 220 Jts of 3-1/2" IBT Tubing • 3-1 /2" IBT Pup Joint • Halliburton 3-1/2" X Nipple • 3-1l2" IBT Pup Joint • 1 joint of 3-1/2" IBT Tubing • 3-1/2" IBT Pup Joint • Halliburton 3-1/2" XN Nipple • 3-1/2" IBT Pup Joint • 2 jts of 3-1/2" IBT Tubing • Centrilift's ESP assembly: Top at 6600' MD • Centrilift's Pump Mate Gauge with Centralizer: Bottom at 6660' MD ------------------------------I ____=__=__ --'-= 3-1/2",9.3#,L-SO,EUESIottedLfner'====___=- 1 ------------------------------1 6-3/4" Hole, OBM ~ 12,802' MD - - ' 7-5/8", 29.7#, L-80, BTC-Mod - 3875' Pilot Hole 6,802' MD / 3,685' TVD 6,972' MD / 3,785' TVD • DRM 9/13/06 WELL DETAILS: Oliktok Point 1-2 REFERENCE INFORMATION Cuordieate IN/E) I4iereYCe: WeY OliMok Point 1.2, True NoAh Ground Level: 12.00 VertkYl (TVD) Rdereoee: RKB ~ 52.000 (Rq + Ground Leveq +N/-S +E1-W Northing Easung Lahnude Longitude Slot McYwred Dtpt6 RerereYCe: RKB ~ 52.000 (Riq + Ground Levu p,(p O.Op 6036577.37 516753.51 70°30'40.023NI49°51'46.457W CYIrYIYtIOY MCIYod: Mioiman CYlVatYre '1 KerrlllrGee _ SECTION DETAILS CASING DETAILS ` _-_ Sec MD Inc Av TYD +N/-S +E/-W DLeg TFace 'Sec Target ~ No lYD MD Naior Siu 1 0.00 U.00 0.00 U.00 0.00 0.00 0.00 0.00 0.00 1 2052.f526W.0Y IY J/4" 1~7/J 2 262.00 0.00 0.00 262.00 0.00 0.00 0.00 0.00 0.00 2 l7YJ.f56%9.YY ePv nuk9-7B I 3 462.00 500 300.80 461.75 4.47 -7.49 2.50 300.80 8.72 4 2017.W 55.56 300.80 1762.00 393.19 -659.59 3.25 0.00 767.89 ~ Pro-ect OLIKTOK POINT 5 2194.45 55.56 300.80 1862.00 467.86 -784.84 0.00 O.W 913.71 ~, 1 6 2418.99 64.29 303.23 1974.43 570.92 -949.32 4.00 14.19 1107.77 ii Site: OL/KTOK POINT I-2 7 4511.09 64.29 303.23 2882.00 1604.00 -2526 00 0.00 0.00 2991.18 I COMPANY DEf.4ILSKerr McGee Well: O/%ktok POint I-2 Y 46ss 37 69.87 3oasz 2938.17 1678.37 -2fi36 07 a.oo 1 s of 3123.82 9 6522.22 69.87 304.82 3580.54 267232 -4075.02 0.00 0.00 487255 ~ Calculation Method: Minimum Cun~ahve Wellbore: Oliktok Point I-2 P61 10 6769.11 60.00 304.60 3685 W 2806.53 -4258.62 4.00 -178.87 5095.42 Oliktok Point 1-2 PB I TI I Error System: ISCWSA 11 6969.11 60.00 304.60 3785.00 2904.88 -4401.19 0.00 0.00 5268.26 J Scan Method. Trav. Cylinder North Plan: Wp09 - - - - Ertor Surface. ElGpncal Conic U'amine Method. Rules Based -400 //~~ Start Dir 2.5/100' :262' MD, 262'ND 0 --" _ - - - " - Start Dir 3.25/100' :462' MD, 461'ND 0°- ____ --____ 400 ----- End Dir :2017' MD, 1762' ND 10° 800 15° Start Dir 4/100' :2194' MD, 1862'ND 7{~~ c 11 ~ 9~ End Dir ,2418' MD, 1974' ND 0 1200 ,S5 ~ , - ~~y - ~ Start Dir 4/100' :4511' MD, 2882'ND ~ 1600 b ~~~ -' ~ End Dir :4655' MD, 2938' ND ~ ~ /~ , , - ' r1' , ,Q r 2000 BPRF mod' Start Dir 4/100' :6522' MD, 3580'ND ~ 2400 ~' p End Dir :6769' MD, 3665' ND F 10 3/4" ag / ~,' ~ / 2800 h~ t° Oliktok Point I-2 P81 T1 3200 - "~~° o Ugnu S MSand _ _ ~~ , , ' ~ ~ Total Depth :6969' MD, 3785' ND 3600 SBLF-_ -- ~° - __--- NSands ='~g ____-- QA-' ~ ~ = Oliktok Point I-2/wp09 Open Hole 4000 -400 0 400 800 1200 1800 2000 2400 2800 3200 3600 4000 4400 4800 5200 5600 6000 6400 6800 7200 7600 8000 8400 8800 Vertical Section at 300.89° (1000 ft/in) ~l) KerrNtGee CASING DETAILS REFERENCE INFORMATION CaorJl~We (N/E) Aerereace: Wet Oglaok Poinl H2. True I~Wrlh No TVD MD Name Size venirat mot Rdererrre: txlce ®sz.oon crze + Ground tsvaq INrarrN DeyU Wfere.re: RRa ®52.0011(Rq + Grouts Lave9 1 2052.95 2600.00 10 3/4" 10-3/4 catrtrwb. nxrr+: tNl.~.. nr.,t.R 2 3784.95 6969.00 Open Hole 9-7/8 COMPANY DEfARS: Kerr McGee P/OjeCt: OLIKTOK POINT CalcWation Method: Minimum Curvature Site: OLIKTOK POINT M2 Error System: IscwsA Well: Oliktok Point I-2 Scan Method: Trav. Cylinder North Error Surface Elliptical Conic Wellbore: Oliktok Polnt 1-2 P61 blaming Mettwd: Rtdes Based Plan: wp09 WELL DETAIiS: giktok Point 1-2 Gound Level: 12.00 +W-S +E/-W Northing Eating Launude Longitude Sla 0.00 0.00 6036577.37 516753.51 70°30'40.023M49°51'46.457W C O s C SECTION DETAILS Sec MD Inc Azi TVD +N/-S +E/-W DLeg TFace VSec Target 1 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 2 262.00 0.00 0.00 262.00 0.00 0.00 0.00 0.00 0.00 3 462.00 5.00 300.80 461.75 4.47 -7.49 2.50 300.80 8.72 4 2017.64 55.58 300.80 1762.00 393.19 -659.59 3.25 0.00 767.89 5 2194.45 55.56 300.80 1862.00 467.86 -784.84 0.00 0.00 913.71 6 2418.99 64.29 303.23 1974.43 570.92 -949.32 4.00 14.19 1107.77 7 4511.09 84.29 303.23 2882.00 1604.00 -2526.00 0.00 0.00 2991.18 8 4655.37 69.87 304.82 2938.17 1678.37 -2636.07 4.00 15.01 3123.82 9 6522.22 69.87 304.62 3580.54 2679.32 -4075.02 0.00 0.00 4872.55 10 6769.11 60.00 304.60 3685.00 2806.53 -4258.62 4.00 -178.87 5095.42 Oliktok Point ~2 P81 T1 11 6969.11 60.00 304.60 3785.00 2904.88 -4401.19 0.00 0.00 5266.26 • 4800 Total Depth :6969' MD, 3785' TVD Fsd Dir :6769' MD, 3685' TVD 4200 giktok Point 1-2 PBI TI Start Dir 4/100' :6522' MD. 3580TVD 3600 ` ~ Fnd Dir 4655' MD, 2938' TVD 95% Goof - ` ~ ' ~ 3000 CA r ~ ~ ~~ ~ Start Dir 4/ 100' :4511' MD, 2882'R'D ~ C ~,yaj ~ Fnd Dir 2418' MD, 1974' TVD 2400 ,~ Oliktok Point 1-2/µp09 ~ Stan Dir 41100' :2194' MD, 1862TVD ~ i ~ -'~ ~ ~ ~ 1800 - ^ho ~' ['aid Dir :2017' MD, 1762' TVD ,~-. ti / ryy8 ~ Stan 6ir 3.25/100' :462' MD, 461TVD C i , ryyh° ~ Stan Dir 2.5/100' :262' MD, 262TVD 1200 ~ ~, ~ , goo ... .'~ tih~, .,~ 0 moo -l(,()00 -5400 -4800 -4200 -3600 -3000 -2400 -1800 -1200 -600 0 G00 1200 1800 2400 3000 3600 4200 4800 5400 0000 6600 7200 West(-yEast(+) (1500 R/in) • Kerr McGee OLIKTOK POINT OLIKTOK POINT I-2 Oliktok Point I-2 Oliktok Point I-2 PB1 Plan: wpO9 Proposal Report • 29 September, 2006 • Database: . EDM_14_648 Company: Kerr McGee Project: OLIKTOK POINT Site: OLIKTOK POINT I-2 Well: Oliktok Point I-2 Weilbore: Oliktok Point I-2 P61 Design: wp09 Halliburton Company Planning Report -Geographic Local Co-ordinate Reference: Well Oliktok Point I-2 ND Reference: RKB @ 52.OOft (Rig + Ground Level) MD Reference: RKB @ 52.OOft (Rig + Ground Level) North Reference: True Survey Calculation Method: Minimum Curvature Project OLIKTOK POINT Map System: US State Plane 1927 (Exact solution) System Datum: Mean Sea Level Geo Datum: NAD 1927 (NADCON CONUS) Map Zone: Alaska Zone 04 Using geodetic scale factor Well Oliktok Point 1-2 Well Position +N/-S 0.00 ft Northing: 6,036,577.37 ft Latitude: 70° 30' 40.023" N +E/-W 0.00 ft Easting: 516,753.51 ft Longitude: 149° 51' 46.457" W Position Uncertai nty 0.00 ft Wellhead Elevation: ft Ground Level: 12.OOft Weilbore Oliktok Point I-2 PB1 Magnetics Model Name Sample Date Declination Dip Angle Field Strength BGGM2006 12/31/1999 26.65 80.80 57,415 Design wp09 Audit Notes: Version: 2 Phase: PLAN Tie On Depth: 0.00 Vertical Section: Depth From (ND) +N/-S +E/-W Direction (ft) (ftl (ft) (°) 0.00 0.00 0.00 300.89 Plan Summary Measured Vertical Dogleg Build Turn Depth Inclination Azimuth Depth +N/-S +EI-W Rate Rate Rate TFO (ft) (°) (°) (ft) (ft) (ft) (°I100ft) (°/100ft) (°/100ft) (°) 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 262.00 0.00 0.00 262.00 0.00 0.00 0.00 0.00 0.00 0.00 462.00 5.00 300.80 461.75 4.47 -7.49 2.50 2.50 0.00 300.80 2,017.64 55.56 300.80 1,762.00 393.19 -659.59 3.25 3.25 0.00 0.00 2,194.45 55.56 300.80 1,862.00 467.86 -784.84 0.00 0.00 0.00 0.00 2,418.99 64.29 303.23 1,974.43 570.92 -949.32 4.00 3.89 1.08 14.19 4,511.09 64.29 303.23 2,882.00 1,604.00 -2,526.00 0.00 0.00 0.00 0.00 4,655.37 69.87 304.82 2,938.17 1,678.37 -2,636.07 4.00 3.87 1.10 15.01 6,522.22 69.87 304.82 3,580.54 2,679.32 -4,075.02 0.00 0.00 0.00 0.00 6,769.11 60.00 304.60 3,685.00 2,806.53 -4,258.62 4.00 -4.00 -0.09 -178.87 6,969.11 60.00 304.60 3,785.00 2,904.88 -4,401.19 0.00 0.00 0.00 0.00 9/29/2006 4:40:12PM Page 2 of 5 COMPASS 2003.11 Build 48 Halliburton Company Planning Report -Geographic Database: .EDM_14_B48 Local Co-ordinate Reference: Well Oliktok Point I-2 Company: Kerr McGee TVD Reference: RKB @ 52.OOft (Rig + Ground Level) Project: OLIKTOK POINT MD Reference: RKB @ 52.OOft (Rig + Ground Level) Site; OLIKTOK POINT I-2 North Reference: True Well: Oliktok Point I-2 Survey Calculation Method: Minimum Curvature Wellbore: Oliktok Point I-2 P61 09 Design: wp . , , ., ,~,. _, ~ ~z., ~n , ., : ,~3 ~~.:~~ Planned Surv ey wpOg Map Map MD Inclination Azimuth TVD SSTVD +N/-S +E/-W Northing Easting DLSEV Vert Section (ft) (°) (°) (ft) (ft) (ftl (ft) (ft) (ft) (°/100ft) (ft) 0.00 0.00 0.00 0.00 -52.00 0.00 0.00 6,036,577.37 516,753.51 0.00 0.00 100.00 0.00 0.00 100.00 48.00 0.00 0.00 6,036,577.37 516,753.51 0.00 0.00 200.00 0.00 0.00 200.00 148.00 0.00 0.00 6,036,577.37 516,753.51 0.00 0.00 262.00 0.00 0.00 262.00 210.00 0.00 0.00 6,036,577.37 516,753.51 0.00 0.00 • Start Dir 2.SN00' : 262' MD, 262'TVD 300.00 0.95 300.80 300.00 248.00 0.16 -0.27 6,036,577.53 516,753.24 2.50 0.32 400.00 3.45 300.80 399.92 347.92 2.13 -3.57 6,036,579.48 516,749.94 2.50 4.15 462.00 5.00 300.80 461.75 409.75 4.47 -7.49 6,036,581.81 516,746.01 2.50 8.72 Start Dir 3.251100' :462' MD, 461'TVD 500.00 6.23 300.80 499.56 447.56 6.37 -10.69 6,036,583.71 516,742.81 3.25 12.44 600.00 9.48 300.80 598.61 546.61 13.37 -22.43 6,036,590.69 516,731.06 3.25 26.11 700.00 12.73 300.80 696.72 644.72 23.24 -38.98 6,036,600.51 516,714.49 3.25 45.38 800.00 15.98 300.80 793.59 741.59 35.93 -60.28 6,036,613.16 516,693.16 3.25 70.18 900.00 19.23 300.80 888.89 836.89 51.42 -86.26 6,036,628.59 516,667.14 3.25 100.43 1,000.00 22.48 300.80 982.32 930.32 69.65 -116.85 6,036,646.75 516,636.52 3.25 136.03 1,100.00 25.73 300.80 1,073.58 1,021.58 90.57 -151.93 6,036,667.58 516,601.40 3.25 176.88 1,200.00 28.98 300.80 1,162.39 1,110.39 114.10 -191.40 6,036,691.02 516,561.88 3.25 222.83 1,300.00 32.23 300.80 1,248.44 1,196.44 140.17 -235.13 6,036,716.99 516,518.09 3.25 273.74 1,400.00 35.48 300.80 1,331.47 1,279.47 168.69 -282.98 6,036,745.40 516,470.18 3.25 329.45 1,500.00 38.73 300.80 1,411.21 1,359.21 199.58 -334.80 6,036,776.17 516,418.30 3.25 389.78 1,600.00 41.98 300.80 1,487.39 1,435.39 232.74 -390.42 6,036,809.20 516,362.61 3.25 454.53 1,700.00 45.23 300.80 1,559.79 1,507.79 268.05 -449.66 6,036,844.37 516,303.30 3.25 523.49 1,800.00 48.48 300.80 1,628.16 1,576.16 305.41 -512.33 6,036,881.59 516,240.55 3.25 596.45 1,900.00 51.73 300.80 1,692.28 1,640.28 344.69 -578.22 6,036,920.72 516,174.57 3.25 673.17 2,000.00 54.98 300.80 1,751.95 1,699.95 385.77 -647.14 6,036,961.64 516,105.57 3.25 753.40 2,017.64 55.56 300.80 1,762.00 1,710.00 393.19 -659.59 6,036,969.03 516,093.11 3.25 767.89 End Dir :2017' MD, 1 762' TVD 2,100.00 55.56 300.80 1,808.58 1,756.58 427.97 -717.93 6,037,003.68 516,034.69 0.00 835.82 2,194.45 55.56 300.80 1,862.00 1,810.00 467.86 -784.84 6,037,043.41 515,967.70 0.00 913.71 Start Dir 4/100' :2194' MD, 1862'TVD - BPRF 2,200.00 55.77 300.87 1,865.13 1,813.13 470.21 -788.78 6,037,045.75 515,963.76 3.99 918.29 2,300.00 59.66 302.00 1,918.53 1,866.53 514.30 -860.89 6,037,089.67 515,891.56 4.00 1,002.81 2,400.00 63.55 303.04 1,966.08 1,914.08 561.59 -935.04 6,037,136.79 515,817.31 4.00 1,090.72 2,418.99 64.29 303.23 1,974.43 1,922.43 570.92 -949.32 6,037,146.09 515,803.00 4.00 1,107.77 End Dir :2418' MD, 1 974' TVD 2,500.00 64.29 303.23 2,009.57 1,957.57 610.92 -1,010.37 6,037,185.95 515,741.87 0.00 1,180.70 2,600.00 64.29 303.23 2,052.95 2,000.95 660.30 -1,085.73 6,037,235.15 515,666.40 0.00 1,270.72 10 3/4" 2,700.00 64.29 303.23 2,096.33 2,044.33 709.68 -1,161.10 6,037,284.36 515,590.93 0.00 1,360.75 2,800.00 64.29 303.23 2,139.72 2,087.72 759.06 -1,236.46 6,037,333.56 515,515.47 0.00 1,450.77 2,900.00 64.29 303.23 2,183.10 2,131.10 808.44 -1,311.83 6,037,382.77 515,440.00 0.00 1,540.80 3,000.00 64.29 303.23 2,226.48 2,174.48 857.82 -1,387.19 6,037,431.97 515,364.53 0.00 1,630.82 3,100.00 64.29 303.23 2,269.86 2,217.86 907.20 -1,462.55 6,037,481.18 515,289.06 0.00 1,720.85 3,200.00 64.29 303.23 2,313.24 2,261.24 956.58 -1,537.92 6,037,530.38 515,213.60 0.00 1,810.87 3,300.00 64.29 303.23 2,356.62 2,304.62 1,005.96 -1,613.28 6,037,579.59 515,138.13 0.00 1,900.90 3,400.00 64.29 303.23 2,400.00 2,348.00 1,055.34 -1,688.64 6,037,628.79 515,062.66 0.00 1,990.92 3,500.00 64.29 303.23 2,443.38 2,391.38 1,104.72 -1,764.01 6,037,678.00 514,987.19 0.00 2,080.95 9/29/2006 4:40:12PM Page 3 of 5 COMPASS 2003.11 Build 48 Halliburton Company Planning Report -Geographic D t b EDM 14 648 l C L i R f W ll Olikt k P i t I 2 a a ase: . oca o-ord nate e erence: e o o n - Company: Kerr McGee ND Reference: RKB @ 52.OOft (Rig + Ground Level) Project: OLIKTOK POINT MD Reference: RKB @ 52.OOft (Rig + Ground Level) Site: OLIKTOK POINT I-2 North Reference: True Well: Oliktok Point I-2 Survey Calculation Method: Minimum Curvature Wellbore: Oliktok Point I-2 P61 Design: wp09 Planned Su rvey wppg Map Map MD Inclination Azimuth TVD SSND +N/-S +E/.yy Northing Easting DLSEV Vert Section 1ft) (°) (°) (ft) (ft) (ft) (ft) (ft) lft) (°/100ft) {ft) 3,600.00 64.29 303.23 2,486.76 2,434.76 1,154.10 -1,839.37 6,037,727.20 514,911.73 0.00 2,170.98 3,700.00 64.29 303.23 2,530.14 2,478.14 1,203.48 -1,914.74 6,037,776.41 514,836.26 0.00 2,261.00 3,800.00 64.29 303.23 2,573.52 2,521.52 1,252.86 -1,990.10 6,037,825.61 514,760.79 0.00 2,351.03 3,900.00 64.29 303.23 2,616.91 2,564.91 1,302.24 -2,065.46 6,037,874.82 514,685.33 0.00 2,441.05 4,000.00 64.29 303.23 2,660.29 2,608.29 1,351.62 -2,140.83 6,037,924.02 514,609.86 0.00 2,531.08 4,100.00 64.29 303.23 2,703.67 2,651.67 1,401.00 -2,216.19 6,037,973.23 514,534.39 0.00 2,621.10 4,200.00 64.29 303.23 2,747.05 2,695.05 1,450.38 -2,291.55 6,038,022.43 514,458.92 0.00 2,711.13 4,300.00 64.29 303.23 2,790.43 2,738.43 1,499.77 -2,366.92 6,038,071.64 514,383.46 0.00 2,801.15 4,400.00 64.29 303.23 2,833.81 2,781.81 1,549.15 -2,442.28 6,038,120.84 514,307.99 0.00 2,891.18 4,500.00 64.29 303.23 2,877.19 2,825.19 1,598.53 -2,517.65 6,038,170.05 514,232.52 0.00 2,981.20 4,511.09 64.29 303.23 2,882.00 2,830.00 1,604.00 -2,526.00 6,038,175.50 514,224.15 0.00 2,991.18 Start Dir 4/100' :4511' MD, 2882'ND 4,600.00 67.73 304.23 2,918.15 2,866.15 1,649.11 -2,593.54 6,038,220.46 514,156.52 4.00 3,072.30 4,655.00 69.86 304.82 2,938.04 2,886.04 1,678.17 -2,635.78 6,038,249.42 514,114.22 4.00 3,123.47 End Dir :4655' MD, 2938' ND 4,655.37 69.87 304.82 2,938.17 2,886.17 1,678.37 -2,636.07 6,038,249.62 514,113.93 4.00 3,123.82 4,700.00 69.87 304.82 2,953.52 2,901.52 1,702.30 -2,670.47 6,038,273.47 514,079.48 0.00 3,165.63 4,800.00 69.87 304.82 2,987.93 2,935.93 1,755.91 -2,747.55 6,038,326.90 514,002.29 0.00 3,259.30 4,893.19 69.87 304.82 3,020.00 2,968.00 1,805.88 -2,819.38 6,038,376.70 513,930.35 0.00 3,346.59 Ugnu 4,900.00 69.87 304.82 3,022.34 2,970.34 1,809.53 -2,824.63 6,038,380.34 513,925.09 0.00 3,352.97 5,000.00 69.87 304.82 3,056.75 3,004.75 1,863.15 -2,901.71 6,038,433.78 513,847.90 0.00 3,446.65 5,100.00 69.87 304.82 3,091.16 3,039.16 1,916.77 -2,978.78 6,038,487.22 513,770.71 0.00 3,540.32 5,200.00 69.87 304.82 3,125.57 3,073.57 1,970.38 -3,055.86 6,038,540.65 513,693.52 0.00 3,633.99 5,265.18 69.87 304.82 3,148.00 3,096.00 2,005.33 -3,106.10 6,038,575.48 513,643.21 0.00 3,695.05 M Sand 5,300.00 69.87 304.82 3,159.98 3,107.98 2,024.00 -3,132.94 6,038,594.09 513,616.33 0.00 3,727.66 5,400.00 69.87 304.82 3,194.39 3,142.39 2,077.62 -3,210.02 6,038,647.53 513,539.13 0.00 3,821.34 5,500.00 69.87 304.82 3,228.80 3,176.80 2,131.23 -3,287.10 6,038,700.97 513,461.94 0.00 3,915.01 5,600.00 69.87 304.82 3,263.21 3,211.21 2,184.85 -3,364.18 6,038,754.41 513,384.75 0.00 4,008.68 5,700.00 69.87 304.82 3,297.62 3,245.62 2,238.47 -3,441.26 6,038,807.84 513,307.56 0.00 4,102.36 5,800.00 69.87 304.82 3,332.03 3,280.03 2,292.09 -3,518.34 6,038,861.28 513,230.37 0.00 4,196.03 5,900.00 69.87 304.82 3,366.44 3,314.44 2,345.70 -3,595.42 6,038,914.72 513,153.17 0.00 4,289.70 6,000.00 69.87 304.82 3,400.85 3,348.85 2,399.32 -3,672.50 6,038,968.16 513,075.98 0.00 4,383.37 6,100.00 69.87 304.82 3,435.26 3,383.26 2,452.94 -3,749.58 6,039,021.59 512,998.79 0.00 4,477.05 6,166.09 69.87 304.82 3,458.00 3,406.00 2,488.37 -3,800.52 6,039,056.91 512,947.77 0.00 4,538.95 SBLF 6,200.00 69.87 304.82 3,469.67 3,417.67 2,506.55 -3,826.65 6,039,075.03 512,921.60 0.00 4,570.72 6,300.00 69.87 304.82 3,504.08 3,452.08 2,560.17 -3,903.73 6,039,128.47 512,844.41 0.00 4,664.39 6,302.68 69.87 304.82 3,505.00 3,453.00 2,561.61 -3,905.80 6,039,129.90 512,842.34 0.00 4,666.90 N Sands 6,400.00 69.87 304.82 3,538.49 3,486.49 2,613.79 -3,980.81 6,039,181.91 512,767.21 0.00 4,758.07 6,500.00 69.87 304.82 3,572.90 3,520.90 2,667.41 -4,057.89 6,039,235.35 512,690.02 0.00 4,851.74 6,522.00 69.87 304.82 3,580.47 3,528.47 2,679.20 -4,074.85 6,039,247.10 512,673.04 0.00 4,872.35 Start Dir 4/100' :6522' MD, 3580'ND 6,522.22 69.87 304.82 3,580.54 3,528.54 2,679.32 -4,075.02 6,039,247.22 512,672.87 0.00 4,872.55 6,600.00 66.76 304.76 3,609.28 3,557.28 2,720.55 -4,134.37 6,039,288.32 512,613.43 4.00 4,944.65 9/29/2006 4:40:12PM Page 4 of 5 COMPASS 2003.11 Build 48 Database: EDM 14 648 Company: _ . _ Kerr McGee Project: OLIKTOK POINT Site: OLIKTOK POINT I-2 Well: Oliktok Point I-2 Wellbore: Oliktok Point I-2 PB1 Design: wp09 .~ Planned Su rvey pypOg Map Map MD (ftl Inclination Azimuth ° ° TVD ft) SSTVD ft) +NI-S ft +E/-W ft Northing (ft) Easting (ft) DLSEV (°/100ft) Vert Section (ft) ( ) ( ) ( ( ( ) ) ( 6,700.00 62.76 304.67 3,651.90 3,599.90 2,772.05 -4,208.71 6,039,339.64 512,538.98 4.00 5,034.89 6,706.74 62.49 304.66 3,655.00 3,603.00 2,775.45 -4,213.63 6,039,343.03 512,534.06 4.02 5,040.86 OA 6,769.00 60.00 304.60 3,684.95 3,632.95 2,806.47 -4,258.54 6,039,373.95 512,489.08 4.00 5,095.33 End Dir :6769' MD, 368 5' TVD 6,769.11 60.00 304.60 3,685.00 3,633.00 2,806.53 -4,258.62 6,039,374.00 512,489.00 4.00 5,095.42 Oliktok Point I-2 P61 T1 6,800.00 60.00 304.60 3,700.45 3,648.45 2,821.72 -4,280.64 6,039,389.14 512,466.95 0.00 5,122.12 6,900.00 60.00 304.60 3,750.45 3,698.45 2,870.90 -4,351.93 6,039,438.15 512,395.56 0.00 5,208.54 6,969.00 60.00 304.60 3,784.95 3,732.95 2,904.83 -4,401.11 6,039,471.97 512,346.30 0.00 5,268.17 Total Depth : 6969' MD, 3785' TVD -Open Hole ` 6,969.11 60.00 304.60 3,785.00 3,733.00 2,904.88 -4,401.19 6,039,472.02 512,346.22 0.00 5,268.26 Geologic Targets Oliktok Point I-2 P61 TVD I arget Nams +N/-S +E/-W Northing Easting (ft) -Shape ft ft (ft) (ft) 3,685.00 ~sfikSak "r'oint I-2 PB ~ i"1 2,806.53 -4,258.62 6,039,374.00 512,489.00 - Circle (radius 250.00) nosed Casin Pro Points g g Measured Vertical Casing Hole Depth Depth Diameter Diameter (ft) (ft) (") (") 2,600.00 2,052.95 10-314 13-112 6,969.00 3,784.95 9-718 9-7/8 Prognosed Form ation Intersection Points Measured Vertical Depth Inclination Azimuth Depth +N/-E +E/-W (ft) (°) (°) (ft) (ft) Ift) Name 2,194.45 55.56 300.80 1,862.00 467.86 -784.84 BPRF 4,893.19 69.87 304.82 3,020.00 1,805.88 -2,819.38 Ugnu 5,265.18 69.87 304.82 3,148.00 2,005.33 -3,106.10 M Sand 6,166.09 69.87 304.82 3,458.00 2,488.37 -3,800.52 SELF 6,302.68 69.87 304.82 3,505.00 2,561.61 -3,905.80 N Sands 6,706.74 62.49 304.66 3,655.00 2,775.45 -4,213.63 OA Halliburton Company Planning Report -Geographic Local Co-ordinate Reference: Well Oliktok Point I-2 TVD Reference: RKB @ 52.OOft (Rig + Ground Level) MD Reference: RKB @ 52.OOft (Rig + Ground Level) North Reference: True Survey Calculation Method: Minimum Curvaiture 9/29/2006 4:40:12PM Page 5 of 5 COMPASS 2003.11 Build 48 ~1J KerrlVtGee Project: OL/KTOK POINT Site: OL/KTOK POINT I-2 We1L• Olikrok Parr /-2 Wellbor*e: O/lktok Polnt I-2 Plan: wp07 -520 0-I r0 520 ~gOQ 15° c_ 1040 ~30 ° ~ ~ °o ° 15so h°~' w ~ hoo ~ `~' 10 3/4~ t7 2080 ~ q° C I' ~ Y600 10 3/4" a~ F 3120 3640 4160 4680 WELL DEfABS: aiktok Poim I-z RereRCxce wIrORMATION Cu-urJiawe IN/EI Rdereace: WeY diktok Poin142, True North Gound Level: 12.00 Vertical (NDI Rerererce: RKB ~ 52.OOfl (Rip + Ground Leveq +W-S +E/-W Northing Easting L atiDUde Longtnde Sloe Mearrel Deylk Nerererca RKB ~ 52.OOM (Rq + Ground Levap 000 0.00 6036577.37 51675351 70°30'40.023NI49°5I'46.157W Cakdali°a a4etkal: Mirrr•6rvatrre SECTION DETAl1S ' CASwG DETAIIS Sec MD Inc An TVD +N/-S +E/-W DLeg TFace VSec Target I N° TVD 11ID Nare Sire " 1 4500.00 64.29 303.23 2877.19 1598.53 -2517.65 0.00 0.00 2951.43 I 2a3S.f52Jtla.ta li 3IJ IY-w 2 4571.59 61.67 304.54 2909.71 1634.07 -2570.59 4.00 156.32 3014.76 ~ Z .Ktl.Ntfkaip 7.Ua" 7.(41 3 X72.N7JN2W •U2" a-vz 3 5786.00 61.67 304.54 3485.94 2240.18 -3451.15 0.00 0.00 4077.67 4 6369.16 85.00 304.60 3652.00 2555.00 -3908.00 4.00 0.15 4629.36 I S 6639.3E 85.00 304.60 3675.55 2707.85 -4129.57 0.00 0.(q 4897.03 ii 6 6802.18 88.35 310.20 3685.00 2606.53 -0258.62 4.00 59.24 5059.22 aiktok Point 1 2 TI 7 6822.18 88.35 310.20 3685. SS 2819.43 -0273.89 0.00 000 5079.21 Cph1PA(.(y pETAR,S1:ert McCcee 8 7072.92 90.17 320.06 3688.83 2996.89 -4150.55 4.00 7964 5328.86 9 12802.31 90.17 320.06 3672.00 7389.72 -8128.68 0.00 0.00 10981.23 aiktok Point 12 T2 Calculation Method: Minimum Cun~aNre Ertor System: ISCWSA Scan Method. Trar. Cylinder North Error Surface: Elliptical Conic Naming Method. Rules Based Start Dlr 4/100' :4500' MD, 2877'ND End Dir :4571' MD, 2909' ND r r ' r ' Start Dir 4/100' :5786' MD, 3486'ND r ' ~ End Dir :6369' MD, 3652' ND ~ .~ , ;' ~~ Start Dir 4/100' :6684' MD, 3675'ND .~ ~~ ,' End Dir :6805' MD, 3685' ND r ~ ' ~ 'Start Dir 4/100' :6825' MD, 3685'ND ~ ~ p ~ r i ~ i~~/ ir' ' ~~ End Dir :7198' MD, 3688' ND ' ~ ,, ~ry ,g ~ a / y~ b' o , , ~, ~~, 7-5/8" Open Hde Oliktok Point I-2/wp09 Oliktok Point I-2 T1 Total Depth: 12802 MD, 3672' ND Oliktok Point I-Z/wp07 ,' 4 1/2" ~ 8 ~ ~ Oliktok Point M2 T2 • 0 520 1040 1560 2080 2600 3120 3640 4160 4680 5200 5720 6240 6760 7280 7800 8320 6840 9360 9880 10400 10920 11440 11960 Vertical Section at 310.66° (1300 ft/in) ~1J KerrNtGee COhIPANY DETAILS: Kerr McGee Project: OLIKTOK POINT Calculation Method: Minimum Curvature Site: OLIKTOK POINT 1-2 Error System: ISCWSA Well: Oliktok Point I-2 Scan Method. Trav. Cylinder Norrh Error Surface. Elliptical Conic Wellbore: Oliktok Point 1-2 blaming Mrrhod: Rrdes Based Plan: wp07 4 1/2" Oliktok Point I-2 T2 i b1ti ' " ~,, ~ . , - -- Total Depth: 12802 MD, 3672' TVD Oli Arok I'omt 1-'Hpu7 57W End Dir - 7198' MD, 3688' TVD Start Di 47100' :6825' MD, 3085"IVD 5040 EndDir 6805' MD, 3685' TVD C ~ 4320 ~ Stan Dir 4/10(1' :0684' MD, 3075'1'~'D O ~ ~` ~' ~~, ~ ,.., End Dir G3G9'MD. 3G52'TVD -r + 3600 ~~ ~` ' O , ' Start Dir 4/100' :5786' MD. 348G'PVD ~ / ' ' _ 2880 L.. _ ' ~ - ' ~ End Dir 4571' MD, 2909' TVD 8 Olikrok Point I-2 TI ,~q _ - ' do 2160 -,ti start Dir 4/100' :4500' MD. 2877TVD ti - laao y8 ti ~~ 'v~ 720 50 F 4 H ' ~ . : 103/4" `.~~ 0 050 -720 CASING DETAILS REFERENCE INFORMATION NO TVD MD Name $IZe Crrarvlioale (N/E) Reference: WeY Ofldok Point F2. True NoAh 1 2052.95 2600.00 10 3/4" 10.3/4 vertlcm (TVUI Reference: RRB ®52.008 (Rp + Ground Levu 2 3685.00 6802.18 7-5/8" 7-5/8 hfrawnd Depth Rdereoce: RKB @ 52.0011 (Rg + Ground Levu 3 3672.002802.00 4 112" 4-1/2 Cakutatian Method: Mlnimam Carvadrre SECTION DETAILS Sec MD Inc Azi TVD +N/-S +E/-W DLeg TFace VSec Target 1 4500.00 64.29 303.23 2877.19 1598.53 -2517.65 0.00 0.00 2951.43 2 4571.59 61.67 304.54 2909.71 1634.07 -2570.59 4.00 156.32 3014.76 3 5786.00 61.67 304.54 3485.94 2240.18 -3451.15 0.00 0.00 4077.67 4 6369.16 85.00 304.60 3652.00 2555.00 -3908.00 4.00 0.15 4629.36 5 6639.36 85.00 304.60 3675.55 2707.85 -4129.57 0.00 0.00 4897.03 6 6802.18 88.35 310.20 3685.00 2806.53 -4258.62 4.00 59.24 5059.22 Olik[ok Point 1-2 T7 7 6822.18 88.35 310.20 3685.58 2819.43 -4273.89 0.00 0.00 5079.21 8 7072.92 90.17 320.06 3688.83 2996.89 -4450.55 4.00 79.64 5328.86 9 12802.31 90.17 320.06 3672.00 7389.72 -8128.68 0.00 0.0010981.23 Oliktok Point I-2 T2 WELL DEfAR.S: Oliktok Point 1-2 Ground Level: 12.00 +W-S +E1-W Noshing Eastmg Latinude Longitude Slot 0.00 0.00 6076577.37 516753.51 70°30'40.023N149°51'4GA.57W `J -8640 -7920 -7200 -b480 -5760 -5040 -4320 -3600 -2880 -2160 -1440 -720 0 720 1440 2160 2880 3600 4320 5040 West(-)/East(+) (1800 ft/in) • Kerr McGee OLIKTOK POINT OLIKTOK POINT I-2 Oliktok Point I-2 Oliktok Point I-2 Plan: wpO7 Proposal Report • 29 September, 2006 • ~ Database: EDM_14_648 Company: Kerr McGee Project: OLIKTOK POINT Site: OLIKTOK POINT I-2 Well: Oliktok Point I-2 Wellbore: Oliktok Point I-2 Design: wp07 Project OLIKTOK POINT Map System: US State Plane 1927 (Exact solution) System Datum: Mean Sea Level Geo Datum: NAD 1927 (NADCON CONUS) Map Zone: Alaska Zone 04 Using geodetic scale factor Well Oliktok Point I-2 Well Position +N/-S 0.00 ft Northing: 6,036,577.37 ft Latitude: 70° 30' 40.023" N +E/-W 0.00 ft Easting: 516,753.51 ft Longitude: 149° 51' 46.457" W Position Uncertainty 0.00 ft Wellhead Elevation: ft Ground Level: 12.OOft Design wp07 Audit Notes: Version: Phase: PLAN Tie On Depth: 4,500.00 Vertical Section: Depth From (TVD) +NI-S +E/-W Direction (ft) (ft) (ft) (°) 0.00 0.00 0.00 310.66 Plan Summary Measured Vertical Dogleg Build Turn Depth Inclination Azimuth Depth +N/-S +E/-W Rate Rate Rate TFO (ft) (°) (°) (ft) (ft) (ft) (°/100ft) (°/100ft) (°/100ft) (°) 4,500.00 64.29 303.23 2,877.19 1,598.53 -2,517.65 0.00 0.00 0.00 0.00 4,571.59 61.67 304.54 2,909.71 1,634.07 -2,570.59 4.00 -3.66 1.82 156.32 5,786.00 61.67 304.54 3,485.94 2,240.18 -3,451.15 0.00 0.00 0.00 0.00 6,369.16 85.00 304.60 3,652.00 2,555.00 -3,908.00 4.00 4.00 0.01 0.15 6,639.36 85.00 304.60 3,675.55 2,707.85 -4,129.57 0.00 4.00 0.01 0.00 6,802.18 88.35 310.20 3,685.00 2,806.53 -4,258.62 4.00 2.06 3.44 59.24 6,822.18 88.35 310.20 3,685.58 2,819.43 -4,273.89 0.00 0.00 0.00 0.00 7,072.92 90.17 320.06 3,688.83 2,996.89 -4,450.55 4.00 0.73 3.93 79.64 12,802.31 90.17 320.06 3,672.00 7,389.72 -8,128.68 0.00 0.00 0.00 0.00 9/29/2006 5:02:55PM Page 2 of 6 COMPASS 2003.11 Build 48 Halliburton Company Planning Report -Geographic Database: .EDM 14 B48 Locai Co-ordinate Reference: Well Oliktok Point I-2 Company: Kerr McGee TVD Reference: RKB @ 52.OOft (Rig + Ground Level) Project: OLIKTOK POINT MD Reference: RKB @ 52.OOft (Rig + Ground Level) Site: OLIKTOK POINT I-2 North Reference: True Well: Oliktok Point I-2 Survey Calculation Method: Minimum Curvature Wellbore: Oliktok Point I-2 Design: wp07 • -., Planned Sur vey wp07 .Map Map MD Inclination Azimuth TVD SSTVD +N/-S +E/-W Northing Easting DLSEV Vert Section tft) l°) (°) lft) (ft) (ft) tft) tft) (ft) (°I100ft) (ft) 0.00 0.00 0.00 0.00 -52.00 0.00 0.00 6,036,577.37 516,753.51 0.00 0.00 100.00 0.00 0.00 100.00 48.00 0.00 0.00 6,036,577.37 516,753.51 0.00 0.00 200.00 0.00 0.00 200.00 148.00 0.00 0.00 6,036,577.37 516,753.51 0.00 0.00 300.00 0.95 300.80 300.00 248.00 0.16 -0.27 6,036,577.53 516,753.24 0.95 0.31 400.00 3.45 300.80 399.92 347.92 2.13 -3.57 6,036,579.48 516,749.94 2.50 4.09 500.00 6.23 300.80 499.56 447.56 6.37 -10.69 6,036,583.71 516,742.81 2.78 12.26 600.00 9.48 300.80 598.61 546.61 13.37 -22.43 6,036,590.69 516,731.06 3.25 25.73 700.00 12.73 300.80 696.72 644.72 23.24 -38.98 6,036,600.51 516,714.49 3.25 44.71 800.00 15.98 300.80 793.59 741.59 35.93 -60.28 6,036,613.16 516,693.16 3.25 69.14 900.00 19.23 300.80 888.89 836.89 51.42 -86.26 6,036,628.59 516,667.14 3.25 98.95 1,000.00 22.48 300.80 982.32 930.32 69.65 -116.85 6,036,646.75 516,636.52 3.25 134.02 1,100.00 25.73 300.80 1,073.58 1,021.58 90.57 -151.93 6,036,667.58 516,601.40 3.25 174.26 1,200.00 28.98 300.80 1,162.39 1,110.39 114.10 -191.40 6,036,691.02 516,561.88 3.25 219.54 1,300.00 32.23 300.80 1,248.44 1,196.44 140.17 -235.13 6,036,716.99 516,518.09 3.25 269.70 1,400.00 35.48 300.80 1,331.47 1,279.47 168.69 -282.98 6,036,745.40 516,470.18 3.25 324.59 1,500.00 38.73 300.80 1,411.21 1,359.21 199.58 -334.80 6,036,776.17 516,418.30 3.25 384.02 1,600.00 41.98 300.80 1,487.39 1,435.39 232.74 -390.42 6,036,809.20 516,362.61 3.25 447.82 1,700.00 45.23 300.80 1,559.79 1,507.79 268.05 -449.66 6,036,844.37 516,303.30 3.25 515.76 1,800.00 48.48 300.80 1,628.16 1,576.16 305.41 -512.33 6,036,881.59 516,240.55 3.25 587.65 1,900.00 51.73 300.80 1,692.28 1,640.28 344.69 -578.22 6,036,920.72 516,174.57 3.25 663.23 2,000.00 54.98 300.80 1,751.95 1,699.95 385.77 -647.14 6,036,961.64 516,105.57 3.25 742.28 2,100.00 55.56 300.80 1,808.58 1,756.58 427.97 -717.93 6,037,003.68 516,034.69 0.57 823.48 2,200.00 55.77 300.87 1,865.13 1,813.13 470.21 -788.78 6,037,045.75 515,963.76 0.22 904.74 2,300.00 59.66 302.00 1,918.53 1,866.53 514.30 -860.89 6,037,089.67 515,891.56 4.00 988.17 2,400.00 63.55 303.04 1,966.08 1,914.08 561.59 -935.04 6,037,136.79 515,817.31 4.00 1,075.24 2,500.00 64.29 303.23 2,009.57 1,957.57 610.92 -1,010.37 6,037,185.95 515,741.87 0.76 1,164.52 2,600.00 64.29 303.23 2,052.95 2,000.95 660.30 -1,085.73 6,037,235.15 515,666.40 0.00 1,253.87 10 3l4" 2,700.00 64.29 303.23 2,096.33 2,044.33 709.68 -1,161.10 6,037,284.36 515,590.93 0.00 1,343.21 2,800.00 64.29 303.23 2,139.72 2,087.72 759.06 -1,236.46 6,037,333.56 515,515.47 0.00 1,432.56 2,900.00 64.29 303.23 2,183.10 2,131.10 808.44 -1,311.83 6,037,382.77 515,440.00 0.00 1,521.91 3,000.00 64.29 303.23 2,226.48 2,174.48 857.82 -1,387.19 6,037,431.97 515,364.53 0.00 1,611.25 3,100.00 64.29 303.23 2,269.86 2,217.86 907.20 -1,462.55 6,037,481.18 515,289.06 0.00 1,700.60 3,200.00 64.29 303.23 2,313.24 2,261.24 956.58 -1,537.92 6,037,530.38 515,213.60 0.00 1,789.94 3,300.00 64.29 303.23 2,356.62 2,304.62 1,005.96 -1,613.28 6,037,579.59 515,138.13 0.00 1,879.29 3,400.00 64.29 303.23 2,400.00 2,348.00 1,055.34 -1,688.64 6,037,628.79 515,062.66 0.00 1,968.63 3,500.00 64.29 303.23 2,443.38 2,391.38 1,104.72 -1,764.01 6,037,678.00 514,987.19 0.00 2,057.98 3,600.00 64.29 303.23 2,486.76 2,434.76 1,154.10 -1,839.37 6,037,727.20 514,911.73 0.00 2,147.32 3,700.00 64.29 303.23 2,530.14 2,478.14 1,203.48 -1,914.74 6,037,776.41 514,836.26 0.00 2,236.67 3,800.00 64.29 303.23 2,573.52 2,521.52 1,252.86 -1,990.10 6,037,825.61 514,760.79 0.00 2,326.01 3,900.00 64.29 303.23 2,616.91 2,564.91 1,302.24 -2,065.46 6,037,874.82 514,685.33 0.00 2,415.36 4,000.00 64.29 303.23 2,660.29 2,608.29 1,351.62 -2,140.83 6,037,924.02 514,609.86 0.00 2,504.70 4,100.00 64.29 303.23 2,703.67 2,651.67 1,401.00 -2,216.19 6,037,973.23 514,534.39 0.00 2,594.05 4,200.00 64.29 303.23 2,747.05 2,695.05 1,450.38 -2,291.55 6,038,022.43 514,458.92 0.00 2,683.40 4,300.00 64.29 303.23 2,790.43 2,738.43 1,499.77 -2,366.92 6,038,071.64 514,383.46 0.00 2,772.74 4,400.00 64.29 303.23 2,833.81 2,781.81 1,549.15 -2,442.28 6,038,120.84 514,307.99 0.00 2,862.09 4,500.00 64.29 303.23 2,877.19 2,825.19 1,598.53 -2,517.65 6,038,170.05 514,232.52 0.00 2,951.43 Start Dir 4/100' :4500' MD, 2877'TVD 9/29/2006 5:02:55PM Page 3 of 6 COMPASS 2003.11 Build 48 Halliburton Company Planning Report -Geographic Database: .EDM 14 B48 Local Co-ordinate Reference: Well Oliktok Point I-2 Company: Kerr McGee TVD Reference: RKB @ 52.OOft (Rig + Ground Level) Project: OLIKTOK POINT MD Reference: RKB @ 52.OOft (Rig + Ground Level) Site: OLIKTOK POINT I-2 North Reference: True Well: Oliktok Point I-2 Survey Calculation Method: Minimum Curvature Wellbore: Oliktok Point I-2 Design: wp07 Planned Surv ey wp07 Map Map MD Inclination Azimuth TVD SSTVD +N/-S +EI-W Northing Easting DLSEV Vert Section (ft) (°) (°) (ft) (ft) lft) (n) (ft) (ft) (°/100ft) (ft) 4,571.00 61.70 304.53 2,909.43 2,857.43 1,633.78 -2,570.16 6,038,205.18 514,179.93 4.00 3,014.24 End Dir :4571' MD, 2909' TVD 4,571.59 61.67 304.54 2,909.71 2,857.71 1,634.07 -2,570.59 6,038,205.47 514,179.50 4.00 3,014.76 4,600.00 61.67 304.54 2,923.19 2,871.19 1,648.25 -2,591.19 6,038,219.61 514,158.87 0.00 3,039.62 4,700.00 61.67 304.54 2,970.64 2,918.64 1,698.16 -2,663.70 6,038,269.35 514,086.26 0.00 3,127.15 4,800.00 61.67 304.54 3,018.09 2,966.09 1,748.07 -2,736.21 6,038,319.09 514,013.64 0.00 3,214.67 4,900.00 61.67 304.54 3,065.54 3,013.54 1,797.98 -2,808.72 6,038,368.83 513,941.03 0.00 3,302.20 5,000.00 61.67 304.54 3,112.99 3,060.99 1,847.89 -2,881.23 6,038,418.57 513,868.41 0.00 3,389.72 5,100.00 61.67 304.54 3,160.44 3,108.44 1,897.80 -2,953.74 6,038,468.31 513,795.80 0.00 3,477.25 5,200.00 61.67 304.54 3,207.88 3,155.88 1,947.71 -3,026.25 6,038,518.05 513,723.18 0.00 3,564.77 5,300.00 61.67 304.54 3,255.33 3,203.33 1,997.62 -3,098.76 6,038,567.79 513,650.57 0.00 3,652.30 5,400.00 61.67 304.54 3,302.78 3,250.78 2,047.53 -3,171.27 6,038,617.53 513,577.95 0.00 3,739.82 5,500.00 61.67 304.54 3,350.23 3,298.23 2,097.43 -3,243.78 6,038,667.27 513,505.34 0.00 3,827.34 5,600.00 61.67 304.54 3,397.68 3,345.68 2,147.34 -3,316.29 6,038,717.01 513,432.72 0.00 3,914.87 5,700.00 61.67 304.54 3,445.13 3,393.13 2,197.25 -3,388.80 6,038,766.75 513,360.11 0.00 4,002.39 5,786.00 61.67 304.54 3,485.94 3,433.94 2,240.18 -3,451.15 6,038,809.53 513,297.66 0.00 4,077.67 Start Dir 41100' : 5786' MD, 3486'TVD 5,800.00 62.23 304.54 3,492.52 3,440.52 2,247.18 -3,461.33 6,038,816.51 513,287.47 3.99 4,089.95 5,900.00 66.23 304.55 3,535.98 3,483.98 2,298.24 -3,535.49 6,038,867.40 513,213.20 4.00 4,179.48 6,000.00 70.23 304.56 3,573.05 3,521.05 2,350.91 -3,611.96 6,038,919.89 513,136.62 4.00 4,271.81 6,100.00 74.23 304.57 3,603.56 3,551.56 2,404.93 -3,690.36 6,038,973.73 513,058.10 4.00 4,366.48 6,200.00 78.23 304.58 3,627.35 3,575.35 2,460.05 -3,770.32 6,039,028.66 512,978.04 4.00 4,463.04 6,300.00 82.23 304.59 3,644.31 3,592.31 2,515.98 -3,851.43 6,039,084.40 512,896.80 4.00 4,561.02 6,369.00 84.99 304.60 3,651.99 3,599.99 2,554.91 -3,907.87 6,039,123.20 512,840.28 4.00 4,629.20 End Dir :6369' MD, 3652' TVD 6,369.16 85.00 304.60 3,652.00 3,600.00 2,555.00 -3,908.00 6,039,123.29 512,840.15 4.00 4,629.36 6,400.00 85.00 304.60 3,654.69 3,602.69 2,572.45 -3,933.29 6,039,140.68 512,814.82 0.00 4,659.91 6,500.00 85.00 304.60 3,663.40 3,611.40 2,629.02 -4,015.29 6,039,197.06 512,732.70 0.00 4,758.98 6,600.00 85.00 304.60 3,672.12 3,620.12 2,685.58 -4,097.29 6,039,253.43 512,650.58 0.00 4,858.04 6,639.00 85.00 304.60 3,675.52 3,623.52 2,707.65 -4,129.27 6,039,275.42 512,618.56 0.00 4,896.67 Start Dir 4/100' :6684' MD, 3675'TVD 6,639.36 85.00 304.60 3,675.55 3,623.55 2,707.85 -4,129.57 6,039,275.62 512,618.26 0.00 4,897.03 6,700.00 86.24 306.69 3,680.18 3,628.18 2,743.08 -4,178.70 6,039,310.74 512,569.06 4.00 4,957.26 6,800.00 88.30 310.12 3,684.94 3,632.94 2,805.12 -4,256.96 6,039,372.60 512,490.67 4.00 5,057.05 6,802.00 88.35 310.19 3,684.99 3,632.99 2,806.41 -4,258.48 6,039,373.89 512,489.14 4.00 5,059.05 End Dir :6805' MD, 3685' TVD 6,802.18 88.35 310.20 3,685.00 3,633.00 2,806.53 -4,258.62 6,039,374.00 512,489.00 4.00 5,059.22 7-518" • Oli ktok Point I-2 T1 6,822.00 88.35 310.20 3,685.57 3,633.57 2,819.31 -4,273.75 6,039,386.75 512,473.84 0.00 5,079.04 Start Dir 41100' :6825' MD, 3685'TVD 6,822.18 88.35 310.20 3,685.58 3,633.58 2,819.43 -4,273.89 6,039,386.87 512,473.70 0.00 5,079.21 6,900.00 88.91 313.26 3,687.44 3,635.44 2,871.21 -4,331.95 6,039,438.51 512,415.53 4.00 5,156.99 7,000.00 89.64 317.19 3,688.70 3,636.70 2,942.17 -4,402.36 6,039,509.31 512,344.97 4.00 5,256.65 7,072.00 90.16 320.02 3,688.83 3,636.83 2,996.18 -4,449.96 6,039,563.21 512,297.25 4.00 5,327.95 End Dir :7198' MD, 3688' TVD 7,072.92 90.17 320.06 3,688.83 3,636.83 2,996.89 -4,450.55 6,039,563.91 512,296.66 4.00 5,328.86 9/29/2006 5:02:55PM Page 4 of 6 COMPASS 2003.11 Build 48 Database: . EDM_14_B48 Company: Kerr McGee Project: OLIKTOK POINT Site: OLIKTOK POINT I-2 Well: Oliktok Point I-2 Wellbore: Oliktok Point I-2 Design: wp07 Halliburton Company Planning Report -Geographic Local Co-ordinate Reference: TVD Reference: MD Reference: North Reference: Survey Calculation Method: Well Oliktok Point I-2 RKB @ 52.OOft (Rig + Ground Level) RKB @ 52.OOft (Rig + Ground Level) True Minimum Curvature Planned Su rvey wp07 Map Map MD Inclination Azimuth TVD SSTVD +N/-S +E/-yy Northing Easting DLSEV Vert Section Ift) (°) (°) (ft) (ft) (n) (ft) (ft) Ift) (°11 ooft) (ft) 7,100.00 90.17 320.06 3,688.75 3,636.75 3,017.65 -4,467.94 6,039,584.63 512,279.23 0.00 5,355.57 7,200.00 90.17 320.06 3,688.45 3,636.45 3,094.32 -4,532.13 6,039,661.15 512,214.86 0.00 5,454.23 7,300.00 90.17 320.06 3,688.16 3,636.16 3,170.99 -4,596.33 6,039,737.67 512,150.50 0.00 5,552.88 7,400.00 90.17 320.06 3,687.87 3,635.87 3,247.67 -4,660.53 6,039,814.19 512,086.14 0.00 5,651.54 7,500.00 90.17 320.06 3,687.57 3,635.57 3,324.34 -4,724.73 6,039,890.71 512,021.77 0.00 5,750.19 7,600.00 90.17 320.06 3,687.28 3,635.28 3,401.01 -4,788.92 6,039,967.23 511,957.41 0.00 5,848.85 7,700.00 90.17 320.06 3,686.99 3,634.99 3,477.68 -4,853.12 6,040,043.75 511,893.04 0.00 5,947.50 7,800.00 90.17 320.06 3,686.69 3,634.69 3,554.35 -4,917.32 6,040,120.27 511,828.68 0.00 6,046.16 7,900.00 90.17 320.06 3,686.40 3,634.40 3,631.03 -4,981.52 6,040,196.79 511,764.32 0.00 6,144.82 8,000.00 90.17 320.06 3,686.10 3,634.10 3,707.70 -5,045.71 6,040,273.31 511,699.95 0.00 6,243.47 8,100.00 90.17 320.06 3,685.81 3,633.81 3,784.37 -5,109.91 6,040,349.82 511,635.59 0.00 6,342.13 8,200.00 90.17 320.06 3,685.52 3,633.52 3,861.04 -5,174.11 6,040,426.34 511,571.23 0.00 6,440.78 8,300.00 90.17 320.06 3,685.22 3,633.22 3,937.71 -5,238.31 6,040,502.86 511,506.86 0.00 6,539.44 8,400.00 90.17 320.06 3,684.93 3,632.93 4,014.39 -5,302.50 6,040,579.38 511,442.50 0.00 6,638.09 8,500.00 90.17 320.06 3,684.64 3,632.64 4,091.06 -5,366.70 6,040,655.90 511,378.13 0.00 6,736.75 8,600.00 90.17 320.06 3,684.34 3,632.34 4,167.73 -5,430.90 6,040,732.42 511,313.77 0.00 6,835.41 8,700.00 90.17 320.06 3,684.05 3,632.05 4,244.40 -5,495.10 6,040,808.94 511,249.41 0.00 6,934.06 8,800.00 90.17 320.06 3,683.75 3,631.75 4,321.07 -5,559.29 6,040,885.46 511,185.04 0.00 7,032.72 8,900.00 90.17 320.06 3,683.46 3,631.46 4,397.75 -5,623.49 6,040,961.98 511,120.68 0.00 7,131.37 9,000.00 90.17 320.06 3,683.17 3,631.17 4,474.42 -5,687.69 6,041,038.50 511,056.31 0.00 7,230.03 9,100.00 90.17 320.06 3,682.87 3,630.87 4,551.09 -5,751.89 6,041,115.02 510,991.95 0.00 7,328.69 9,200.00 90.17 320.06 3,682.58 3,630.58 4,627.76 -5,816.08 6,041,191.54 510,927.59 0.00 7,427.34 9,300.00 90.17 320.06 3,682.29 3,630.29 4,704.43 -5,880.28 6,041,268.06 510,863.22 0.00 7,526.00 9,400.00 90.17 320.06 3,681.99 3,629.99 4,781.11 -5,944.48 6,041,344.58 510,798.86 0.00 7,624.65 9,500.00 90.17 320.06 3,681.70 3,629.70 4,857.78 -6,008.68 6,041,421.10 510,734.49 0.00 7,723.31 9,600.00 90.17 320.06 3,681.41 3,629.41 4,934.45 -6,072.87 6,041,497.61 510,670.13 0.00 7,821.96 9,700.00 90.17 320.06 3,681.11 3,629.11 5,011.12 -6,137.07 6,041,574.13 510,605.77 0.00 7,920.62 9,800.00 90.17 320.06 3,680.82 3,628.82 5,087.79 -6,201.27 6,041,650.65 510,541.40 0.00 8,019.28 9,900.00 90.17 320.06 3,680.52 3,628.52 5,164.47 -6,265.47 6,041,727.17 510,477.04 0.00 8,117.93 10,000.00 90.17 320.06 3,680.23 3,628.23 5,241.14 -6,329.66 6,041,803.69 510,412.68 0.00 8,216.59 10,100.00 90.17 320.06 3,679.94 3,627.94 5,317.81 -6,393.86 6,041,880.21 510,348.31 0.00 8,315.24 10,200.00 90.17 320.06 3,679.64 3,627.64 5,394.48 -6,458.06 6,041,956.73 510,283.95 0.00 8,413.90 10,300.00 90.17 320.06 3,679.35 3,627.35 5,471.15 -6,522.26 6,042,033.25 510,219.58 0.00 8,512.55 10,400.00 90.17 320.06 3,679.06 3,627.06 5,547.83 -6,586.45 6,042,109.77 510,155.22 0.00 8,611.21 10,500.00 90.17 320.06 3,678.76 3,626.76 5,624.50 -6,650.65 6,042,186.29 510,090.86 0.00 8,709.87 10,600.00 90.17 320.06 3,678.47 3,626.47 5,701.17 -6,714.85 6,042,262.81 510,026.49 0.00 8,808.52 10,700.00 90.17 320.06 3,678.17 3,626.17 5,777.84 -6,779.05 6,042,339.33 509,962.13 0.00 8,907.18 10,800.00 90.17 320.06 3,677.88 3,625.88 5,854.51 -6,843.24 6,042,415.85 509,897.76 0.00 9,005.83 10,900.00 90.17 320.06 3,677.59 3,625.59 5,931.19 -6,907.44 6,042,492.37 509,833.40 0.00 9,104.49 11,000.00 90.17 320.06 3,677.29 3,625.29 6,007.86 -6,971.64 6,042,568.89 509,769.04 0.00 9,203.14 11,100.00 90.17 320.06 3,677.00 3,625.00 6,084.53 -7,035.84 6,042,645.40 509,704.67 0.00 9,301.80 11,200.00 90.17 320.06 3,676.71 3,624.71 6,161.20 -7,100.03 6,042,721.92 509,640.31 0.00 9,400.46 11,300.00 90.17 320.06 3,676.41 3,624.41 6,237.87 -7,164.23 6,042,798.44 509,575.94 0.00 9,499.11 11,400.00 90.17 320.06 3,676.12 3,624.12 6,314.55 -7,228.43 6,042,874.96 509,511.58 0.00 9,597.77 11,500.00 90.17 320.06 3,675.82 3,623.82 6,391.22 -7,292.63 6,042,951.48 509,447.22 0.00 9,696.42 11,600.00 90.17 320.06 3,675.53 3,623.53 6,467.89 -7,356.82 6,043,028.00 509,382.85 0.00 9,795.08 11,700.00 90.17 320.06 3,675.24 3,62324 6,544.56 -7,421.02 6,043,104.52 509,318.49 0.00 9,893.74 11,800.00 90.17 320.06 3,674.94 3,622.94 6,621.23 -7,485.22 6,043,181.04 509,254.13 0.00 9,992.39 11,900.00 90.17 320.06 3,674.65 3,622.65 6,697.91 -7,549.42 6,043,257.56 509,189.76 0.00 10,091.05 12,000.00 90.17 320.06 3,674.36 3,622.36 6,774.58 -7,613.62 6,043,334.08 509,125.40 0.00 10,189.70 12,100.00 90.17 320.06 3,674.06 3,622.06 6,851.25 -7,677.81 6,043,410.60 509,061.03 0.00 10,288.36 9/29/2006 5:02:55PM Page 5 of 6 COMPASS 2003.11 Build 48 • • Database: . EDM_14_648 Company: Kerr McGee Project: OLIKTOK POINT Site: OLIKTOK POINT I-2 Well: Oliktok Point I-2 Wellbore: Oliktok Point I-2 Design: wp07 Halliburton Company Planning Report -Geographic Local Co-ordinate Reference: Well Oliktok Point I-2 TVD Reference: RKB @ 52.OOft (Rig + Ground Level) MD Reference: RKB @ 52.OOft (Rig + Ground Level) North Reference: True Survey Calculation Method: Minimum Curvature Map Map MD Inclination Azimuth TVD SSTVD +NI-S +E/-W Northing Easting DLSEV Vert Section (ft) (°) (°) (ft) (ft) (ft) (ft) (ftl (ft) (°I100ft) (ft) 12,200.00 90.17 320.06 3,673.77 3,621.77 6,927.92 -7,742.01 6,043,487.12 508,996.67 0.00 10,387.01 12,300.00 90.17 320.06 3,673.48 3,621.48 7,004.59 -7,806.21 6,043,563.64 508,932.31 0.00 10,485.67 12,400.00 90.17 320.06 3,673.18 3,621.18 7,081.27 -7,870.41 6,043,640.16 508,867.94 0.00 10,584.33 12,500.00 90.17 320.06 3,672.89 3,620.89 7,157.94 -7,934.60 6,043,716.68 508,803.58 0.00 10,682.98 12,600.00 90.17 320.06 3,672.59 3,620.59 7,234.61 -7,998.80 6,043,793.19 508,739.21 0.00 10,781.64 12,700.00 90.17 320.06 3,672.30 3,620.30 7,311.28 -8,063.00 6,043,869.71 508,674.85 0.00 10,880.29 12,800.00 90.17 320.06 3,672.01 3,620.01 7,387.95 -8,127.20 6,043,946.23 508,610.49 0.00 10,978.95 12,802.00 90.17 320.06 3,672.00 3,620.00 7,389.49 -8,128.48 6,043,947.76 508,609.20 0.00 10,980.92 Total Depth: 12802 MD, 3672' TVD - 4 112" 12,802.31 90.17 320.06 3,672.00 ` 3,620.00 7,389.72 -8,128.68 6,043,948.00 508,609.00 0.00 10,981.23 Oliktok Point I-2 T2 Geologic Targets Oliktok Point I-2 TVD ,. +N/-S +E/-W Northing Easting (ft) as:~~pe ft ft (ft) (ft) 3,685.00 r:ak Point I-2 T1 2,806.53 -4,258.62 6,039,374.00 512,489.00 -Point 3,672.00 Oliktok Point 1-2 T2 7,389.72 -8,128.68 6,043,948.00 508,609.00 - Point Prognosed Casing Points Measured Vertical Casing Hole Depth Depth Diameter Diameter (ft) (ft) (") (") 2,600.00 2,052.95 10-314 13-1/2 6,802.18 3,685.00 7-5/8 9-718 12,802.00 3,672.00 4-1/2 6-3/4 9/29/2006 5:02:55PM Page 6 of 6 COMPASS 2003.11 Build 48 • Halliburton BaROi~ Kerr McGee Mud Program KE~M~~ cor~~a nc~r ~pa~ Kerr-McGee OP-12 Baroid Mud Program Halliburton Baroid Name (Printed) Signature Date Originator Dave Soquet Reviewed by Dave Higbie Customer Approval Walter Quay Version No: Date: 2.0 October 2, 2006 OP-12 v2.0 1 1012/06 • • Halliburton BnROi~ Kerr McGee Mud Program OP-12 Mud Program General Discussion This injecfor well will be drilled from Oliktok Point in north Kuparuk. A 13 '/z" surface hole will be drilled directionally to a TD of 2,600' MD (2,053' TVD). A string of 10 3/a" casing will be run and cemented at this depth. A 9-7/8" pilot hole will then be drilled to -6,972' MD (3,785' TVD). The hole will then be plugged back to 4,500' MD (2,877' TVD) with cement. An open hole sidetrack will be performed and the 9-7/8" hole will be drilled to 6,806' MD (3,685' TVD), landing horizontally in the Schrader Bluff. A string of 7-5/8" casing will be run and cemented at this depth. A 6 %" hole section will be drilled horizontally to TD at 12,808' MD (3,672' TVD). A 4 %2" slotted liner will be run and set at this depth. An inhibited KCI/Polymer mud will be used to drill surface and the 9-7/8" pilot and sidetrack intervals. Mineral Oil Base Mud (MOBM) will be used to drill the horizontal interval. As a general drilling fluids plan, spud the well with inhibited 9.0 ppg 10% KCI/Polymer mud. The mud weight will then be held between 9.0-10.0 ppg mud weight to the surface hole TD unless hole conditions dictate otherwise. Our primary focus for surface hole drilling operations will be adequate mud weight for well control and sufficient mud viscosity for efficient hole cleaning. This spud mud is formulated with mechanisms to provide effective wellbore stabilization and to reduce drilling waste, i.e., ionic inhibition (KCI) and polymer encapsulation (PHPA). From the surface shoe, the continued use of the inhibited KCI/Polymer mud is suggested. When drilling this interval of the well a certain amount of new mud will be required prior to drilling to re-adjust the low gravity solids content to within acceptable limits for continued drilling operations. For the most part, the mud density requirements will be met with additions of soluble salts (KCI) to allow maximum application of mechanical solids control support. This being the case, the mud filtrate salinity may range in the 80K-100K ppm range if additional mud weight is required. The KCI concentration is dependent upon MWD and logaina restrictions and could vary from this recommendation. After running and cementing the 7-5/8" bump the plug with MOBM. If operations do not allow bumping the plug with MOBM, displace the well prior to drilling out of the 7-5/8" casing. Special Considerations 1. Waste minimization is critical to the success of this well. 2. Maintain a sufficient quantity of Driltreat (lecithin) to accomplish a 2 ppb treatment in the event gas hydrates are noted. 3. Lime and zinc carbonate should be on location for H2S contingency (@1 pallet No Sulf and 2 pallets lime). 4. Maintain an adequate barite supply (and other necessary products) to increase the mud weight of the current circulating volume by 1.5 ppg at any time (@2800 sx barite on location at all times). 5. Maintain an adequate supply of LCM and the other mud additives, which may be required to support this drilling program. Well Saecifics: Casin Pro ram MD ND Fo to e 13'/2" hole 10 3/" Casin 2600 2053 2600 9-7/8" ilot hole 6972 3785 4372 9-7/8" hole 7-5/8" Casin 6806 3685 2306 6 3/4" Hole 4'/2" liner 12808 3672 6002 OP-i2 v2.0 2 10/2/06 • C7 Halliburton BaROID Kerr McGee Mud Program Surface Hole Mud Properties (13'/Z" Hole, 9-7/8" Casing at 2,343' MD) Mud Properties Densi Viscosi YP PV 10 S. Gel API FL Initial 9.0 80 -120 35 - 45 13 - 21 10 -15 <15 Final 9.0-9.6 50 - 80 15 - 30 15 - 23 10 - 15 6-8 Surface Interval The surface interval of this well will be drilled with a 10% KCI/Polymer mud as formulated below: 9.0 ana Formulation Fresh Water - .95 bbl KCI - 37 ppb (ionic inhibition) EZ Mud DP - .25 ppb (polymer encapsulation) PAC-L/R - .5 ppb (API filtrate of 6-12 cc's) Barazan-D - 1-2 ppb (as required for an initial 35 YP) KOH - .1 ppb (pH = 8.5-9) Aldacide-G - .2 ppb (X-Cide 207 for rig maintenance) Baroid - 0 (as needed) Baracor 700 - 1.0 ppb (corrosion inhibitor) Barascav D - .5 ppb (to be added at rig) Spud the well with maximum flow rates (600-1000 gpm assuming 13 %" hole w/5° drill pipe) to ensure good cuttings transport. Target an initial YP in the 35 range then adjust as dictated by the actual hole cleaning requirements of the well (minimum gravel is anticipated -mostly clays and sand). Reduce viscosity as allowed (previous wells in the area have TD'd the surface with a -20-25 YP). However, if hole cleaning appears to be inadequate, do not hesitate to quickly raise the viscosity as required. Polymer viscosity in the form of Barazan-D additions should be utilized to provide rheological support as needed. Utilize high viscosity sweeps to supplement the hole cleaning capabilities of the system. Barolift sweeps (.25 ppb Barolift in base mud) can also be utilized to minimize viscosity build up. With an initial mud density of 9.0 ppg, please note the other issues of concern as listed below: 1. Make sure all members of the drilling team are aware of the potential of encountering gas hydrates. 2. A mud weight increase is not currently programmed for drilling the gas hydrate interval of the well, if encountered. 3. If gas hydrates are noted, treat the system with 2.0 ppb of Driltreat (Lecithin) and %s% by volume DriI-N-Slide. Some defoamer additions may also be necessary to help the gas break out. 4. Maintain the mud as cool as possible (less than 60°F if possible). Efforts to keep the fluid cool include mudding up with cold water and diluting the mud with cold water. The Baroid mud plant in Prudhoe Bay can be utilized to supply the initial volume of fluid for the spud. Make every effort to maintain the system as clean as possible through the normal dilution process and maximization of solids control equipment application. OP-12 v2.0 3 10/2/06 • • Halliburton aAROi~ Kerr McGee Mud Program Mud maintenance issues for this interval of the well are as follows: 1. If possible, use pre-mixed KCI water to maintain volume while drilling ahead. The density of the KCI solution should be based upon mud weight requirements at any given point of the well. 2. Use PACs/Dextrid for API filtration control. Target 6-12 cc's initially, dropping the fluid loss to the 6 cc range prior to running casing at the surface hole TD. 3. Hold the pH in the 8.5-9.5 range with KOH. 4. By material balance, maintain the EZ Mud DP in the .75-1.0 ppb range. Use .25 ppb in the initial formulation to minimize screen blinding until the polymer shears. 5. Control penetration rates based upon the ability of the surface system to process the drilling mud. 6. Daily additions of Aldacide G or X-Cide 207 are needed to control bacterial action. 7. Corrosion inhibitors should be run with this mud system (1 ppb Baracor 700 / .5 ppb Barascav D). 8. Keep MBT as low as possible (generally <11 ppb). Heavy amounts of clay may be present below the permafrost that could require additions of ConDet and/or DriI-N-Slide to reduce BHA balling and screen blinding. Sweeping the hole prior to the short trip at TD and again prior to coming out of the hole to run the surface casing is recommended. If possible (keeping waste minimization in mind), reduce the fluid's rheology to <20 YP after the casing is on bottom prior to starting the cement job. 13'/2" Maximum Acceptable ROP in fph at Specified GPM and RPM GPM-+ 600 800 1000 100r m 109 151 176 120r m 126 174 211 Baroid's recommended flowrate for this interval is 800 gpm to ensure adequate hole cleaning while maximizing solids control efficiency. Maximize pipe rotation once the hole builds to greater than 30 degrees. OP-12 v2.0 4 10/2/06 • • Halliburton BaROID Kerr McGee Mud Program Pilot Hole Mud Properties (9-7/8" Hole to 6,619, Plug back to 5,425') Mud Pro erties Densi Viscosi YP PV H API FL CI Initial 9.0 - 9.6 40 - 60 15 - 25 9 -18 8.5 - 9.5 <6 50-90K Pilot Hole Interval The pilot hole interval of this well will be drilled with the same 10% KCI/Polymer mud as the surface hole: 9.0 ppp Formulation Fresh Water - .95 bbl , KCI - 37 ppb (ionic inhibition/50.5K ppm chlorides) EZ Mud DP - .75 ppb (polymer encapsulation) PAC-L/R - .5 ppb (API filtrate of 6-12 cc's) Barazan-D - 1 ppb (as required for an initial 15 YP) KOH - .1 ppb (pH = 8.5-9.5) Aldacide-G - .2 ppb (X-Cide 207 for rig maintenance) Baroid - (as needed) Baracor 700 - 1.0 ppb (corrosion inhibitor) Barascav D - .5 ppb (to be added at rig) Prior to drilling out the surface casing, condition the spud mud to a ~9.2 ppg density with <4% LGS and an MBT of <6 ppb (a certain amount of new mud will be required for re-adjusting the properties of the mud to insure a quality fluid for the initial drilling operations of the 9-7/8° hole). As in the surface hole, KCI will be used for ionic inhibition and for the basic density requirements of the system. If additional mud weight is needed, increase it with KCI to the 65,000-90,000 ppm range so as to allow maximum application of centrifuge support to optimize solids control efforts. Work with the MWD personnel on site to run the highest possible chloride concentration which will still allow their tools to read properly. Should the brine phase density be limited for the MWD, achieve the remaining density requirement with barite. Initially, target a mud density of -9.2 ppg with a YP in the 15 to 25 range. Adjust the YP as required with Barazan-D polymer for efficient hole cleaning. Pre-treat for screen blinding from heavy clays with Dril-N- Slide and/or ConDet treatments. Regular sweeping of the hole with high viscosity or Barolift sweeps is recommended every 4-6 hours while drilling to supplement the hole cleaning ability of the fluid. Elevated flow rates and high rotary speed will be required to adequately clean the hole. A 9.0-9.6 ppg density will be maintained down to the interval TD at -6,972'. Maintain the mud as clean as possible through the use of solids control equipment and dilution as required. Maintain the API filtrate <6 with PAC and Dextrid. Daily additions of X-Cide 207 should be made to control bacterial action. KOH should be used for pH control. Keep the MBT as low as possible (<11 ppb). Maintain Barascav D and Baracor 700 specs to aggressively treat for corrosion. Heavy amounts of clay will be present which require additions of ConDet and/or DriI-N-Slide to reduce BHA balling and screen blinding. Sweeping the hole prior to the short trip at TD and again prior to coming out of the hole to log is recommended. If possible (keeping waste minimization in mind), reduce the fluid's rheology to <20 YP after the casing is on bottom prior to starting the cement job. OP-12 v2.0 5 10/2/06 • Halliburton eAROio Kerr McGee Mud Program Maximum Acceptable ROP in fph at Specified GPM and RPM GPM 500 600 700 100r m 121 153 168 120r m 155 190 220 150r m 184 233 272 Baroid's recommended flowrate for this interval is 600 gpm to maximize hole cleaning at these penetration rates. Pump rates above 650 gpm cause a high increase in ECD. High rpms are crucial to good hole cleaning. Control drill the interval to minimize annular loading and the potential for packing off and/or stuck pipe. OP-12 v2.0 h 10!2/06 • • Halliburton BaROID Kerr McGee Mud Program Intermediate Hole Mud Properties (9-7/8" Hole, 7-5/8" Casing at 7,049' MD) Mud Pro erties Densi Viscosi YP PV H API FL CI Intermed 9-9.6 40 - 60 15 - 25 13- 23 8.5 - 9.5 <6 50-90K Intermedatg Interval The intermediate interval of this well will be drilled with the same 10% KCI/Polymer mud as the pilot hole: 9.0 gpa Formulation ~ Fresh Water - .95 bbl KCI - 37 ppb (ionic inhibition/50.5K ppm chlorides) EZ Mud DP - .75 ppb (polymer encapsulation) PAC-UR - .5 ppb (API filtrate of 6-12 cc's) Barazan-D - 1-2 ppb (as required for an initial 35 YP) KOH - .1 ppb (pH = 8.5-9) Aldacide-G - .2 ppb (X-Cide 207 for rig maintenance) Baroid - (as needed) Baracor 700 - 1.0 ppb (corrosion inhibitor) Barascav D - .5 ppb (to be added at rig) As in the surface and pilot hole, KCI will be used for ionic inhibition and for the basic density requirements of the system. Increase the mud weight as needed with KCI to the 65,000-90,000 ppm range so as to allow maximum application of centrifuge support to optimize solids control efforts. Work with the MWD personnel on site to run the highest possible chloride concentration which will still allow their tools to read properly. Should the brine phase density be limited for the MWD, achieve the remaining density requirement with barite. Initially, maintain the mud density at ~9.2 ppg with a YP in the 15 to 25 range. Adjust the YP as required with Barazan-D polymer for efficient hole cleaning. Pre-treat for screen blinding from clays with Dril-N- Slide and/or ConDet treatments. Regular sweeping of the hole with weighted high viscosity or Barolift sweeps is recommended every 4-6 hours while drilling to supplement the hole cleaning ability of the fluid. Maintain the mud as clean as possible through the use of solids control equipment and dilution as required. Maintain the API filtrate <6 with PACs and Dextrid. Use KCI brine for daily volume additions (the brine density should be based on the mud weight/MWD objectives at the time). Daily additions of X-Cide 207 should be made to control bacterial action. KOH should be used for pH control. Keep the MBT as low as possible (<11 ppb). Maintain Barascav D and Baracor 700 specs to aggressively treat for corrosion. Sweeping the hole prior to the short trip at TD and again prior to coming out of the hole to run the 7-5/8" casing is recommended. If possible (keeping waste minimization in mind), reduce the fluid's rheology to <20 YP after the casing is on bottom prior to starting the cement job. If possible ,bump the plug with the MOBM for the next interval. OP-12 v2.0 7 10/2/06 Halliburton BAROi~ Kerr McGee Mud Program Maximum Acceptable ROP in fph at Specified GPM and RPM GPM 500 600 700 100r m 113 155 181 120r m 156 169 210 150r m 175 214 267 Baroid's recommended flowrate for this interval is 600 gpm to maximize hole cleaning at these penetration rates. Pump rates above 650 gpm cause a high increase in ECD. Maximize pipe rotation at all times. OP-12 v2.0 8 10/2/06 • ~ Halliburton BaROID Kerr McGee Mud Program Production Hole (6 3/<" Hole, 3'/:" slotted liner to 13,041' MD) Mud Type: Enviromul System Mud Properties Densi Viscosi PV YP ES HTHP WPS FL Horizontal Interval 9.0-9.3 55 - 80 10 - 20 12 - 20 800- 1100 <6 250 to 300K 80/20 • Additional mud weight may be required for effective shale stabilization. System Formulation Product Concentration LVT-200 0.68 bbl INVERMUL NT 4 ppb EZ MUL NT 4 ppb GELTONE V 4 ppb Lime 5 ppb DURATONE 4 ppb Water 0.178 bbl CaCl2 28.6 ppb Baracarb 5 23 ppb Baracarb 25 12 ppb Baracarb 50 5 ppb BAROID As needed Concerns and Continaencies Production Interval Mud Tvae: ENVIROMUL System. 1. Mud weight: Maintain the density at 9.0 - 10.0 ppg. Increase density as required for hole stability. Maximize solids control usage. 2. Rheology: Maintain a YP between 12 and 20. Pump high viscosity or Barolift sweeps throughout the interval as needed, particularly prior to POH for casing. Optimized mud rheology and flow rate will be the primary mechanisms for achieving hole cleaning in this horizontal wellbore. Maximize pipe rotation (ideally > 100 RPM). 3. Other issues: The use of good drilling practices to minimize excessive swab and surge pressure should be employed to minimize the chances for losses and differential sticking. Qnerations Summary: If operations allow, the cementers will bump the plug with the ENVIROMUL system on the 7-5/8" casing string. Approximately 300 bbl of oil mud will be required to bump. Prepare the pit system for the ENVIROMUL as follows: • Clean pits, solids control equipment, all lines and pumps. • Flush all lines with a small volume of oil and discard. • Disconnect all water lines to the pit area and rig floor. • Check all steam fittings in pit room for leaks and repair as needed. OP-12 v2.0 9 10/2/06 • Halliburton BAROID Kerr McGee Mud Proctram If operations do not allow bumping the plug with ENVIROMUL, displace as follows: Once the shoe has been drilled, displace the well to the ENVIROMUL system designated for this interval of the well. Pump the following spacers ahead of the oil mud: Spacer Formulations: • Pump 50 bbl of >40 YP fresh water or seawater Barazan D+ spacer. • 50 barrels of the OBM treated with GELTONE to a YP > 40 (app. 4-6 sx). • Follow with ENVIROMUL mud system. Displacement procedure: • Monitor pump strokes to obtain correct displacement. • Maintain maximum pump rates. • Have the bit on bottom as the oil mud exits the bit. • Reciprocate the drill string by one joint every 15 minutes • Rotate the pipe as rapidly as allowed during the actual displacement. • Do not shut down during the displacement. • Use an E.S. meter at the flow line to determine when the fluid is water free enough to start taking the returns back into the system. An ES of 300-500 should be sufficient to indicate when displacement is complete. A retort should also be run at this time to confirm fluid quality. • Clean possum belly and any troughs which were used to transport water base fluid. Maintenance: 1. Additions of Geltone V will maintain/modify the system rheology to a YP between 12 and 20 to provide effective hole cleaning while controlling ECD and surge/swab pressures. Run the rheology checks at 120°F to TD. 2. Base oil should be used to thin the mud. OMC 2 and OMC 42 will also be available to condition (thin) the mud as required; however, caution should be used when using these oil mud thinners (particularly the OMC-2) to avoid over-thinning the system. 3. Drill this interval with a tight DURATONE HT filtration mechanism (< 6 cc/30 min @ 200° F) 4. The electrical stability of the mud should be run in the 800-1100 volt range with INVERMUL NT and EZ MUL NT. DRILTREAT will be available as an effective wetting agent, if needed for weighting up. 5. Maintain the water phase salinity between 250,000 - 300,000 mg/I range with sack calcium chloride. This level of salinity will provide an effective mechanism for good wellbore stabilization. 6. The excess lime content will be maintained in the 3 ppb range to provide an effective reserve alkalinity source and to improve the emulsion stability of the mud system. 7. The initial oil:water ratio will be 80:20. From there, the system will be maintained with base oil allowing the ratio to drift towards the 90:10 range. This will help reduce the cost of the original fluid and then help control rheology/ECD with a higher ratio in the lower depths of the well. Suggested Drilling Parameters OP-12 v2.0 10 10/2/06 Halliburton BAROIO Kerr McGee Mud Program Pump rate and drill string rotation should be optimized through the real-time use of the DFG software for the actual ROP while drilling. The table below highlights the maximum ROP recommendations above which hole cleaning will become an issue. Maximum Acceptable ROP in fph at Specified GPM and RPM GPM 200 275 350 100r m 139 206 274 120r m 181 220 291 Procedure for c~isalacina MOBM to Brine 1. Pump 23 bbl (1000' annular volume) hi-vis / BARAKLEAN spacer 2. Chase with 23 bbl BARASCRUB spacer 3. Chase with 23 bbl hi-vis / BARAKLEAN spacer. 4. Chase with 3% KCI brine. 5. Monitor returns, saving MOBM. Discard spacers and interface at surface. Once returns look good, take returns to pits. Hi-Vis / BARAKLEAN Formulation Fresh Water - .986 bbl KCI - 11.5 ppb (3% KCI) Barazan-D - 3 ppb (as required 150 vis) BARAKLEAN - 5% v/v BARASCRUB Formulation Fresh Water - .493 bbl KCI - 11.5 ppb (3% KCI) BARASCRUB - 50% v/v Risks and Continaencies for the well: Lost Circulation: Preventing the initiation of lost returns should be a primary goal of the drilling fluid in the well. To that end the rheology of the system has been reduced while still providing ample hole cleaning. Maintaining a low ECD while circulating, and eliminating high pressure spikes while tripping, will both go a long ways toward reducing the risk of lost returns. Should lost retums happen, check with MWD personnel prior to pumping any pills to ensure that no plugging will occur. Wellbore Instability: The possibility for sloughing gravel exists in the surface hole section. Should this occur, immediately increase the rheology of the mud to accommodate hole cleaning. Also, maintaining the mud as cool as possible will minimize sloughing and washout. Stuck pipe: Two forms of stuck pipe are possible. One is from hole pack-off as related to poor hole cleaning, i.e. cuttings bed. Stuck pipe can occur if a cuttings bed forms, or if the wellbore exhibits severe instability. The best cure is to pro-actively prevent the occurrence of either scenario, and if they do occur, correct drilling practices must be employed. If pulling up into a tight spot, do not jar up further, but attempt to .get below the problem. Backreaming a large cuttings bed is an invitation to packing off and resulting stuck pipe, and backreaming must be done with care and only when necessary. If stuck pipe occurs across a sand and there are indications of differential sticking, there are drilling fluid solutions. If possible, reducing the fluid density by a minimum of 0.5 ppg may provide some relief. OP-12 v2.0 11 10/2/06 Halliburton BaROIO Kerr McGee Mud Program Corrosion Mitigation Barascav D and Baracor 700 will be run in the water base fluid system to mitigate corrosion. Daily sulfite and phosphonate checks will be run to monitor this program. Sulfite levels should be maintained at 200-300 ppm and phosphonate levels between 600-800 ppm. Lubrication: Due to the high sail angle in the pilot and intermediate sections, lubricants will likely be required in the water based system. It is recommended to add 2% of the tube cocktail (0.5% DriI-N-Slide, 1 % EZ Glide or Torq Trim II, and .5% EP Mudlube) to provide adequate but minimal lubricant support. This concentration can be increased to 5% in 1 % increments if all other remedial actions have been taken (sweeps, etc.). Additions of Barofibre (2-3 ppb) while drilling can also reduce torque and drag. This method was used on the Witch Farm ERD wells. Hole Cleaning: Maintaining the programmed flow properties is essential to successful completion of this well. Any indication of a failure to keep the annulus clean of excess cuttings (PWD increases, drag, torque, partial packing off) should be countered by increasing the circulation time on subsequent connections and prior to trips. Pipe rotation should also be used in conjunction with the pumping of high viscosity sweeps in the pay sands. The returns at surface of all pills should be monitored at the shakers and documented to gauge their effectiveness. When circulating bottoms up prior to POH, it is advisable to pull one stand every half hour to reduce the hole washout effects of circulating over one short interval. Long circulation times should be avoided if the bit/BHA are in one of the mudstone/clay sections. Pipe should be kept moving at all times during this circulation period. High speed pine rotation is the most critical factor for hole cleaning. ROP rates above the recommended levels or with no (sliding) or low rpm will require an increased frequency of the following remedial hole cleaning practices: • wiper trips • back reaming • extended periods of circulation (with maximum pipe rpm, targeting > 100 rpm) • hole cleaning sweeps (change flow regime of base mud by using fibers, density or rheology for carrying capacity) • connection practices -employing extended gpm, rpm and back reaming during the connection OP-12 v2.0 12 10/2/06 • • Halliburton BAROi~ Kerr McGee Mud Program Surface -Modeled hole cleaning 1hAl1Ye Good hole cleaning is achieved at 800 gpm and 100 rpms at ROPs less than 150 fph. Maximizing pipe rotation becomes critical as the hole builds above 30 degrees. OP-12 v2.0 13 10/2/06 • Halliburton BaROIO Kerr McGee Mud Program Pilot Hole -Modeled hole cleaning rha~1 ~e Pipe rotation is critical in this wellbore. Rotary steerable is highly recommended. Adequate hole cleaning is achievable with 600 gpm and 100 rpm at ROPs under 100 fph. Higher penetration rates will require remedial actions such as extended circulation times, increased sweep frequency, in increased wiper trip frequency. OP-12 v2.0 14 10/2/06 • • Halliburton saROlo Kerr McGee Mud Program Intermediate -Modeled hole cleaning 1.1h[Ufhre Again, pipe rotation is critical in this wellbore. Adequate hole cleaning is achievable with 600 gpm and 100 rpm at ROPs under 100 fph. Control drilling is highly recommended to avoid annular loading and/or pack off. Production -Modeled hole cleaning OP-12 v2.0 15 10/2/06 • • Halliburton BAROIO Kerr McGee Mud Program 1.fihQli4re Good hole cleaning is achievable with 300 gpm and 100 rpm. ECD increases 0.3 ppg with each increase of 50 gpm. Lower flowrates and high RPMs would minimize ECD while maintaining good hole cleaning capabilities. OP-12 v2.0 16 10/2/06 • Halliburton BaROID Kerr McGee Mud Program Fluid VolumesL~. Surface Interval: At spud approximately 600 barrels of new fluid will be delivered. Dilution rates for the 13 %" section are anticipated at .73 bbl/ft. Estimated Fluid Disposal Volumes: P10 P50 P90 Initial build 500 600 1000 Dilution 1100 1900 3200 Reuse to next interval -800 -500 0 Total 800 2000 4200 Estimated Drill Solids Disposal Volumes: P10 P50 P90 Cuttin s Volume 500 580 690 Wettin Fluid 250 580 1380 Total 750 1160 2070 Pilot Hole Interval: Dilution rates for the 9-7/8" pilot hole section are anticipated at .47 bbl/ft. Estimated Fluid Disposal Volumes: P10 P50 P90 Initial build 0 200 700 Dilution 1500 2000 3000 re-use 500 400 0 Total 1000 1800 3700 Estimated Drill Solids Disposal Volumes: P10 P50 P90 Cuttin s Volume 415 455 515 Wettin Fluid 215 455 1030 Total 630 910 1545 Intermediate Interval: Dilution rates for the 9-7/8" intermediate section are anticipated at .47 bbl/ft. Estimated Fluid Disposal Volumes: P10 P50 P90 Initial build 0 200 400 Dilution 700 1100 1800 Total 700 1300 2200 Estimated Drill Solids Disposal Volumes: OP-12 v2.0 17 10/2/06 • • Halliburton BaROiD Kerr McGee Mud Program P10 P50 P90 Cuttin s Volume 210 230 260 Wettin Fluid 110 230 520 Total 320 460 780 Production Interval to TD: -900 barrels of MOBM will be initially be required for this interval. Dilution rates for this section are anticipated at 0.15 bbl/ft. Estimated Fluid Disposal Volumes: P10 P50 P90 Initial Build 800 900 1100 Dilution 600 900 1800 Total 1400 1800 2900 Estimated Drill Solids Disposal Volumes: P10 P50 P90 Cuttin s Volume 270 290 330 Wettin Volume 140 290 660 Total 410 580 990 Fluid Costs: P10 P50 P90 13 %" SurFace 51,000 71,000 101,000 9-7/8" Pilot 102,000 144,000 247,000 9-7/8" Intermediate 54,000 75,000 129,000 6 3/" Production 179,000 363,000 597,000 Com letion 10,000 16,000 24,000 Total $396 000 $669 000 $1,098,000 OP-12 v2.0 18 10/2/06 Shallow Drilling Hazards Evaluation Kerr McGee Oliktok Point I-1, I-Z PB-1, I-2 Wells Alaska State Leases ADL 390615, 355024 Nikaitchuq Project Oliktok Point, Alaska Summary Pursuant to 20AAC 25.061, all available data from proximal wells and pertinent geophysical data have been evaluated for evidence of any shallow to intermediate depth drilling hazards. Mudlogs and wireline logs from these wells indicate minor amounts of / natural gas hydrates in sands and gravels of the Sagavanirktok Formation associated with ice in the permafrost wedge. There is also the possibility of encountering heavy oil ~ accumulations in the Ugnu and/or Schrader Bluff sections. Our well plan is designed for the case that both the shallow gas hydrates and heavy oil-saturated strata will be ~ penetrated in both the Oliktok Point Injector 1 and 2 wellbores. Seismic data does not suggest or define any anomalous shallow hazard zones. Oliktok Point I-1 well is planned to be directionally drilled from a gravel pad to be located on Oliktok Point (Fig. 1). Figures 2 and 3 provide a more detailed picture of the proposed surface location. The proposed surface location is 2051' FNL and 1519' FEL of Section 5, T13N, R9E of the Umiat Meridian (X= 516,760.57'E, Y= 6,036,581.12'N, NAD 27, Zone 4) (Fig. 4). The OA Sand Member of the Schrader Bluff Formation is the target interval for this wellbore. The target location for the wellbore is 1,050' FSL and 750' FEL of Section 33, T 14N, R 9E. Coordinates are X=522,798'E and Y=6,039,700'N. The well will TD at a point 1,172' FSL and 744' FEL of Section 33, T 14N, R 9E. The wellbore will be plugged back for drilling of a lateral should the program continue. Oliktok Point I-2 well will be drilled from the same gravel pad upon which the Oliktok Point I-1 is located. The actual surface location will be slightly east and south of the I-1 surface location. The proposed surface location is 2,055' FNL and 1,526' FEL of Section 5, T13N, R9E of the Umiat Meridian (X=516,753.51'E &Y=6,036,577.37'N NAD 27 Zone 4). The OA Member of the Schrader Bluff Formation is the target interval for this wellbore, as well. The target location for the pilot hole is 750' FSL and 500' FEL , of Section 31, T14N, R9E of the Umiat Meridian (X=512,489'E & Y=6,039,374'N, NAD 27 Zone 4) at a depth of 3613'. The target heel location for the lateral portion of the wellbore is projected to be 750' FSL, & 500' FEL, Sec. 31, T14N, R9E (X=512,489'E & Y=6,039,374'N, NAD 27, Zone 4) at a depth of 3,613'. The target toe location at TD for the lateral portion of the wellbore is projected to be X=508,609' E & Y=6,043,948'N, NAD 27, Zone 4 at a depth of 3627'. J. Kamm -- 9/15/2006 Page 1 JLK_Final_OP_Shallow Hazards_1_ (2).doc • • Geology: Shallow and Intermediate Depth Horizons Oliktok Point I-1 will penetrate strata ranging from the Gubik Formation (Pleistocene) at the surface, to the Schrader Bluff Formation of the Colville Group (Cretaceous) at the base of the pilot hole (Fig. 5). Oliktok Point I-2 will TD in the Late Cretaceous Schrader Bluff Formation as well. The Gubik Formation and the superficial covering of Quaternary sediments, are comprised of approximately 800' of interbedded sand, gravel, mud, and some low-grade coals deposited in marine and marginal marine settings. The Gubik Formation unconformably overlies the Sagavanirktok Formation (Late Cretaceous through Eocene). The Sagavanirktok Formation consists of complexly interbedded sand, shale, and conglomerate deposited in multiple sequences of marine and non-marine strata deposited in deltaic to coastal plain environments. These sediments are all unconsolidated. The Sagavanirktok is projected to be over 2500' thick in the Oliktok Point area. The Late Cretaceous Colville Group is comprised (from younger to older) of the Ugnu Formation, the Schrader Bluff Formation (also known as the West Sak Formation), and the Colville Mudstone. The Colville Group represents an overall upward shallowing, progradational sedimentary package deposited in environments ranging from open marine basinal to fluvial settings. Both Oliktok Point I-1 and I-2 wells will penetrate approximately 600' of Ugnu Formation sediments, mostly comprised of unconsolidated to slightly cemented sand and gravel. The Ugnu Formation overlies 400-500' of upward coarsening cycles of interbedded sand, silt and mud of the Schrader Bluff Formation. Many of the sands developed in the Ugnu and Schrader Bluff formations contain reserves of heavy oil in both the Milne Point and Kuparuk fields. Geophysics The 3D seismic grid covering the leases of interest was analyzed for potential shallow and intermediate depth drilling hazards (Fig. 6). The seismic data is of varying vintage and quality. The utility of some volumes for shallow hazard interpretation is questionable, at best. The seismic data, that was judged suitable, was then compared to wireline logs, mud logs and scout information from uphole sections in wellbores drilled in the Oliktok Point and Nikaitchuq areas. There is no geophysical evidence, such as amplitude anomalies or velocity sags, suggesting the proposed Oliktok Point I-] and I-2 wells will encounter any form of shallow entrapped natural gas, or intersect any conductive faults (Fig. 7). J. Kamm -- 9/15/2006 Page 2 JLK_Final_OP_Shallow Hazards_1_ (2).doc • • Potential Shallow Drilling Hazards Permafrost Oliktok Point I-1 and I-2 surface locations are on a man made gravel pad at the northern end of the Oliktok Point promontory approximately 1.2 miles NNW of the Kuparuk River Field 3R pad. Oiktok Point #2 located 1.7 miles SE of the surface location of Oliktok Point I-1 and I-2, was drilled by Arco in 1984 Oliktok Point #2, based on resistivity profiles, encountered permafrost to a TVD of 1750'. Oliktok Point #1, drilled in 1982 is located 2 miles south of the Oliktok Point I-1 and I-2 surface location. Oliktok Point 1 encountered permafrost to a TVD of approximately 1650'. The Oliktok Point I-1 and I-2 should encounter permafrost to approximately the same depth interval as encountered in Oliktok Point # 1 and #2 wells. Shallow Hydrocarbon Accumulations There is no evidence of any significant accumulations of gas hydrates in the / shallow sands of the Oliktok Point area. Mudlogs from the Nikaitchuq #1 (3.5 miles north) well showed the presence of minor gas hydrates within the permafrost from 1200- 1750' TVD, with a maximum hotwire reading of 400 units gas (1280' TVD). The Exxon Thetis Island well (6 miles west of proposed location) was characterized by similar indications of gas hydrates contained within the permafrost wedge. The Nikaitchuq #1, 2, 3 and 4, wells along with the Tuvaaq #1 and Kigun #1 wells penetrated Schrader Bluff sands with shows of heavy oil in the Kigun #1 well at approximately 3,650-3,750' TVD. No well control problems were encountered while drilling through these show zones in any of the aforementioned wells. Oliktok Point 2 (1.5 miles 5SE) encountered hydrocarbon shows in the Schrader Bluff (3350-3550'TVD) but, again, no well control issues were noted. No hydrocarbon shows are associated with this interval in the Exxon Thetis Island well or the East Harrison Bay well (4 miles WSW) Conclusions No drilling hazards associated with natural gas hydrates, shallow trapped natural gas or oil are anticipated in the drilling of the Oliktok Point I-1 and I-2 wells. Although minor amounts of gas hydrates are associated with the permafrost layer, these amounts can and will be dealt with by prudent drilling operations and practices. Heavy oil entrapped in either the Ugnu and/or Schrader Bluff intervals is not considered to present any drilling risks. J. Kamm -- 9/15/2006 Page 3 JLK_Final_OP_Shallow Hazards_1_ (2).doc 0 0 ~ CLAMP 0 o CONNECTOR IJ 5/a' 5000/ WP HYORIL, TYPE CK' iJ s/9' 5000/ WP API STUDDED TOP BY 13 s/a" API FIANCEO BOnOM ll2S (RIMMED ANNULAR BOP I iJ-s/a' 6000/ NYDRIL DOUBLE GATE PREVENIOR IJ-s/e" sooo/ wP I sTUDDEO roP aND BonoM N2S TRIMMED 4" 10,000/ WP " 4' 10.000/ WP CAMERON TYPE f ° CAMERON HCR YALVE G4TE VALVE ~ I 4' 10.000/ WP CAMERON T1CR VALVE 4' CHOKE LINE - _ _ J' KILL UNE - - 4' 10,000/ WP ~ 4"xJ'~ ~ IJ-s/b" 6000/ API _ CAMERON TYPE 7" FLANGED TOP AND BOnOM G4TE VALVE MUD CROSS W/ iW0 (1) 4' 10,000/ API FUNCED OURE15 H25 TRIMMED BOP STACK ELEVATION 2I 1/4" 2,000/ WP SHAFFER 7,000/ STUDDED i0P BY 21 I/4' 2,000/ FUNCED BOnOM N25 TRIMMED ANNULAR DIVERTER SYSTEM i6"-150{ FLG 6' KNIFE GATE W/ M'D. ACTUATOR Z._D. N:\ACADFILE\245E\245_OPERATIONS\245E03Bi~'R, F-rz"''18519T1~9~1~.z~'liT1CONFIGURATION I6" DIVE SURFACE OIVERTER PIPING CONFIGURATION PLAN VIEW '-€~ L ~NaborsAlQlm zsa~cs"~`,.e~ •w~~anWel~ase~ Anclnr ,wao a am-ae'~'eooo PP0'E~ NABOBS ALASKA RIG 245E rinE BOP STACK AND DIVERIER CONFKIURATKN! °~".I~ ALSTON DAVE NE6ERr "~PNO'E0 °Ya~E xEeERT ~~~ SCNF N/A °""a DEC 2001 01G'1O' a45eD101 ~IU A ~~~ 4 B p c D r 3 ~-1/16 30u6 SEGMENtED 2.61 2-1/16 91 V/VR c 115000 PSIPSI r~ A 2619 161!6 L[6L W~ V~ ~ ! 7M M00 112 ASSEMBLY/SWE KERB McGEE ALASKA SLIMLINf WELLHEAD 16 X 10-3/4 X 7-S/8 K 4-1/2 3000 PSI, PRODUCER PRlpOSAL LAYOUT 2 16 699 16.3/A ~'.a50 L-00 ~-s/9 xs.~~ L-eo +-1/z 12b0 IHiN L-BD 1 THIS !S A GENERIC DRA1/ING. NOTES= REFER 70 DASH NUMBERED PARTS L15T FOR ADDITDNAL INFQ2MATIDN. PRINT SCACE+1=6 A D / Subject: Re: Filings for Nikaitchuq From: Stephen Davies <steve_davies@admin.state.ak.us> Date: Wed, 25 Oct 2006 18:02:46 -0800 To: "Henke, David" <David.Henke@anadarko.com> David, _'t' For ADL 355024, the only Notice of Ownership forms that AOGCC has on file are one conveying 55.3% assigned Or ~,bt" interest from ConocoPhillips to Armstrong effective March 1, 2005, and a second conveying 39.3% assigned interest ((' from BP to Armstrong also effective March 1, 2005. Commission files do not contain Notice of Ownership forms showing the transfer of ownership from Armstrong to Kerr-McGee or from Armstrong to ENI for lease ADL 355024. Please correct me if I've overlooked something. Thanks, Steve Davies AOGCC Henke, David wrote: I thought we filed one from when we drilled the original Kigun well. I thought you only needed one from Eni. Please let me know. From: Stephen Davies [mailto:steve_davies@admin.state.ak.us] Seat: Wednesday, October 25, 2006 2:01 PM To: Henke, David Subject: Re: Filings for Nikaitchuq David, One more thing. As I recall, for lease ADL 355024 ARCO (now ConocoPhillips} was the initial owner of this lease, so a Notice of Ownership will be required from Kerr-McGee as well as from ENI since both companies are subsequent owners of the lease. Maybe my letter of October 12th wasn't sufficiently clear on this. Thanks, Steve Davies Henke, David wrote: Steve, have you now received all you need from Kerr-McGee and Eni for the Nikaitchuq drilling permits? I'm particularly interested in knowing that the Kerr-McGee and Eni Designation of Operator forms and the Eni Notice of Ownership forms have been received by you and are complete. *Please note my E-Mail Address has changed. Please update your contact list* Anadarko Confidentiality Notice: • • This electronic transmission and any attached documents or other writings are intended only far the person or entity to which it is addressed and may contain information that is privileged, confidential or otherwise protected from disclosure. If you have received this communication in error, please immediately notify sender by return a-mail and destroy the communication. Any disclosure, copying, distribution or the taxing of any action concerning the contents of this communication or any attachments by anyone other than the named recipient is strictly prohibited. Steve Davies RE: Olik PT I-2 • • Subject: RE: O~ik PT I-2 From: "Quay, Walter" <Walter.Quay c~ asrcenergy.corn> Date: ~1or~, 16 Oct 2006 16:13:28 -0800 'I'o: Thomas Mau~~dcr = "-to~» maunder(ci?admin.state.~jk.us:> CC: ~(C°vC Davies ~~steve daviesr~i'a~imin.sl~~le.ak.us= . Dave. Robv <-love roh~,~ua~lmin.state.<ik.us== Tom, 1. The top of the slotted liner is intended to be: 6700'. The other depth on page 8 is an error. 2. The TOC for the 7-5/8" is intended to be -5000' 3. The MSP calculation on page 5 is intended to examine the well from the well control and well control equipment maximum perspective and to ensure the equipment is appropriately tested and fit for purpose. Using the Nikaitchuq #4 pressures is actually a bit high due to the greater tvds. For preciseness, The Max Surface Pressure on Page 5 should be: Nikaitchuq #4, Schrader Bluff BHP = 1927psi Oliktok Point I2 Expected BHP = 1778 psi Maximum Surface Pressure = 1778psi - (3650 ft x 0.11 psi/ft) _ 1377psi On the issue of expected pressures/MW needed.. There are several estimates for this well. The likely estimate is 1650 psi @ 3650' for 8.7 ppg emw. The highest estimate is < 1800 psi or 9.5 ppg emw. With that in mind, the 9.6 ppg MW should be sufficient. 4. This will be an injector. I will have 1600' of non-overlapped casing (providing the TOC is ~ 5000' and the liner top is 6700') to get sufficient bond log. I would prefer do defer the log in the removal of the ESP, injection string operation. Walter Quay (907)339-6341 -----Original Message----- From: Thomas Maunder [mailto:tom maunder~admin.state.ak.us] Sent: Wednesday, October 11, 2006 3:44 PM To: Quay, Walter Cc: Steve Davies; Dave Roby Subject: Olik PT I-2 Walter, I am looking at the permit and have a couple of questions. 1. Where will the slotted liner hanger be? In the casing program on page 2, the TOL is indicated to be 6700'. But in the procedure on page 8 it says 4750'? Thats a long way above the shoe. 2. What is the planned TOC for your 7-5/8" cement? 3. Your intermediate mud programs state a maximum MW of 9.6 ppg and the SB MW maximum is given as 9.3 ppg, but on page 5 the BHP give for calculating MASP is 10.1 ppg equivalent. If the 10.1 ppg is correct, the mud weights are a little light. 4. Ultimately, I believe this well will be an injector. I imagine that a workover will be done to remove the ESP, is that correct? If the well will be an injector a bond log will be necessary. Depending on where your slotted liner is hung, you may wish to consider running such a log before a long interval is covered by the slotted liner. Please have a look at these questions. I may have more as I get further into the application, but wanted to get these off to you. Tom Maunder, PE 1 of 2 10/17/2006 2:22 PM • ~ Subject: Re: [Fwd: Re: AOGCC Needs Notice of Ownership and Designation of Operator Forms for Leases ADL 390615 and ADL 355024] From; Stephen Davies <steve davies@admin.state.ak.us> Date: Thu, 12 Oct 2006 15:19:23 -0800 To: "Henke, David" <David.Henke@anadarko.com> David, Your questions have caused us to revisit these forms, and have sparked several interesting discussions. For lease ADL 355024: ~ ~~ ~,. ~'"Areo (now t„onocoPhitlips} purchased this lease from DNR during a lease sale, so Arco alone was the initial owner of A ~ the Iease. Every subsequent owner of any portion of this Iease is required to file a Notice of Ownership with x,04 AOGCC. Armstrong, as owner of Segment Z of this lease, designated Kerr-McGee as operator effective March 1, 2005. Since ~~~ ~~M~~.oN ~~4~~ d~ poi 1~ •~ then, most of Armstrong's ownership has been transferred to Kerr-McGee and ENT. AOGCC seeds each owner to designate Kerr-McGee as operator by filing a Designation of Operator form (Form 10-41 I}with AOGCC. So, / Kerr-McGee and ENT, as owners, must file Designation of Operator forms designating Kerr-McGee as operator for this lease, unless you can provide a prior agreement to AOGCC stating that Kerr-McGee alone, as simple majority owner, has fiill legal authority to name itself as operator. Armstrong, as a minority owner of the lease, is currently covered by the Form 10-411 that they previously filed on February 25, 2005. For Tease ADL 390625: Kerr-McGee and Armstrong purchased this Lease in 2005 directly from DNR during a lease sale, so neither Kerr-McGee nor Armstrong have to file a Notice of Ownership form with AOGCC for this tease. Because ENI purchased Armstrong's interest in lease ADL 39061 S, ENI must file a Notice of Ownership form with AOGCC for this lease. Kerr-McGee and ENI, as owners, must. file Designation of Operator forms designating Kerr-McGee as operator for this lease, unless you can provide a prior agreement to AOGCC stating that Kerr-McGee alone, as simple majority owner, has full IegaI authority to name itself as operator. The legal description provided on any AOGCC form must include the number of the affected lease and a detailed description of sit affected governmental sections, including any segmentation. Please let me know if you have any additional questions. Steve Davies AOGCC Henke, David wrote: No problem. I will tell Dawn we do not need her to complete the form. i As I now understand it, we need a Designation of Operator form for ADL 355024 from KMG to KMG and a Designation of Operator form on ADL 390615 from Eni to KMG. i Do we also need a Notice of Ownership form from Eni on ADL 355024, Segment 2? What about a Notice of Ownership form from Eni on ADL 390615? • • From: Stephen Davies fmailto:steve_davies@admin.state.ak.us] Sent: Thursday, October 1Z, 2006 2:48 PM To: Henke, David Subject: [Fwd: Re: AOGCC Needs Notice of Ownership and Designation of Operator Forms for Leases ADL 390615 and ADL 355024] David, One change is needed. AOGCC does not require a Notice of Ownership form from the initial owners of a lease purchased at a DNR lease sale. The form is only required from every subsequent owner of that lease. My apologies for the confusion and any extra work. Please let me know if you have any questions. Steve Davies AOGCC ------- Original Message -------- Subject:Re: AOGCC Needs Notice of Ownership and Designation of Operator Forms for Leases ADL 390615 and ADL 355024 Date:Wed, 11 Oct 2006 08:56:20 -0800 From:Stephen Davies <steve davies~admin.state.ak.us> Organization:State of Alaska To:Henke, David <David.Henke(c~anadarko.com> References:<C3159C51 B4B7F441 BC834D66E7D661 E6868D4F(a~houex~3.kmg. com> David, A full legal description of each property must be provided to the AOGCC, and that description must include all pertinent segment number(s) that are being transferred from the existing owner to the new owner. The Assignor (existing owner) must sign the Notice of Ownership form, and the AOGCC must receive the signed original copy for our records, including documentation that the representative signing the form is indeed legally authorized to do sa. For the Designation of Operator form (Form 10-411}, the operator must sign to accept responsibility for operations on the lease. A representative of the owner must sign the form to verify that the owner has indeed assigned the operating rights. Again, AOGCC must receive the signed original copy for our records. Both of these forms are legally binding documents, and they establish responsibility for all operations conducted on each lease. So the representative(s) signing each form must have sufficient authority to bind their company (companies). That is why AOGCC requires Powers of Attorney or other evidence of signatory authority as attachments to each document. Please let me know if you have questions. Steve Davies AOGCC Henke, David wrote: Steve, on ADL 355024 do we just refer to Segment 2 in the property description? Do we still need to get Armstrong to sign on the Notice of Ownership form? Or assignment came from them. I could get copies of the filed assignment and attach to the form and put in "see assignment'" in the signature block if that would work. I don't see any problems in filing out the form to designate ourselves as operator except for verifying who can sign. Are there any requirements or restrictions on that? Sorry to be so much trouble on this. Wish I had started a few months ago. We probably should have filed these forms as soon as we acquired the lease for ADL 390615 and as soon as we got the assignment on the portion of ADL 355024 we acquired. I will know better next time. _. __ ___ __ _- ____ __ From: Stephen Davies fmailto:steve davies@admin.state.ak.us] Sent: Tuesday, October 10, 2006 6:55 PM To: Henke, David Subject: AOGCC Needs Notice of Ownership and Designation of Operator Forms for Leases ADL 390615 and ADL 355024 David, Because Kerr-McGee (Anadarko? will they remain separate entities in Alaska?) is proposing to conduct drilling operations on lease ADL 390615, it must file a Notice of Ownershipform (Form 10-417} with AOGCC to conform with our regulation 20 AAC 25.022 and to complete our files. Since ENI became an owner of the lease when they purchased Armstrong's interest, ENI must also file a Notice of Ownership form with the AOGCC. A Designation of Operator form (Form 10-411) must also be filed with AOGCC for this lease. The same applies to lease ADL 355024 for the Oliktok Point I-2 well: Kerr-McGee, ENI and any other owners must file Notice of Ownership forms with AOGCC. In addition, to keep AOGCC's records clear and complete, Kerr-McGee should also file another Designation of Operator form naming itself as operator for lease ADL 355024. Please let me know if you have any questions. Steve Davies AOGCC Henke, David wrote: Thanks, Steve. It looks like we will have the Designation of Operator forms to you by the end of the week. As I read the regs, the notice of ownership form would not be necessary for us since we have always been the owner and thus have not "become" an owner. My confidence level is not high. Is my understanding correct? Eni tells me they have already made the appropriate filings. Do you need more from them? If you do, is it just the Notice of Ownership form? I did find the copy earlier on the web site. When I read it, it looked like it did not apply to us. I was not so sure of Eni. Perhaps I was not correct about us. From: Stephen Davies fmailto:steve davies@admin.state.ak.us] Sent: Monday, October 09, 2006 4:17 PM To: Henke, David Subject: Re: [Fwd: AC?GCC Needs Notice of Ownership and Designation of Operator Forms for Lease ADL 390615] David, Here is the pertinent regulations. The Notice of Ownership form is available on the Commission's web site at h ://www.ao cc.alaska. ov/forms/formsindex.shtml. Please let me know~w I can hel . ~ ~ r Steve Davies AOGCC 2a AAC 25.02a DESIGNATION OF OPERATOR. If an owner of a property wishes to designate a new operator for the properly, the owner shall submit to the commission for approval a Designation of Operator (Form 10-411}. The commission will not approve the designation of a new operator without the signature of the newly designated operator on the same Designation of Operator form. By signing the Designation of Operator form, the newly designated operator agrees to accept the obligations of an operator. The newly designated operator shall furnish a bond and, if required, security as provided for in 20 AAC 25.025. The commission's acceptance of the designated operator's bond constitutes the release of the former operator's bonding obligation for the property indicated on the Designation of Operator form. History - Eff. 4/13!80, Register 74; am 4/2/86, Register 97; am 11/7/99, Register 152 Authority - AS 31.05.030 <> <!--[if !supportEmptyParas]--> <!--[endifj--> 20 AAC 25.022 NOTICE OF OWNERSHIP. Within 15 days after a person becomes an owner of a property on which operations subject to this chapter are proposed to the commission or are being conducted, the person shall file a Notice of Ownership (Form 10-417}. oHistory - Eff. 4/2/86, Register 97; am 11/7/99, Register 152 Authority - AS 31.05.030 Henke, David wrote: I think I understand that designation of operator form needs to be filed with Eni as Owner designating Kerr-McGee as Operator and that is now in the works. I don't know what designation of ownership form needs to be filed. Kerr-McGee was one of the original lessees. I understood that Armstrong had already filed appropriate forms following its sale to Eni. Which parties need to designate ownership? If Kerr-McGee needs to file something I may need some help on how to fill out the form 10-417. _____. __ ~1 L. ~ From: Stephen Davies [mailtoateve_davies@adminstate.ak.us] Seat: Monday, October 09, 2006 12:22 PM To: Henke, David Subject: [Fwd: AOGCC Needs Notice of Ownership and Designation of Operator Forms for Lease ADL 390615] David, I overlooked your change of email address. Apologies, Steve Davies AOGCC ------- Qriginal Message -------- Subject:AOGCC Needs Notice of Ownership and Designation of Operator Forms for Lease ADL 390615 Date:Fri, 29 Sep 2006 08:37:40 -0800 From:Stephen Davies <steve davies cr,admin.state.ak.us> Organization:State of Alaska To:Henke, David <dhenke@kmg.com> David, While reviewing Kerr-McGee's application for a permit to drill for Oliktok Point I-1, 2 noted that Kerr-McGee has not filed Notice of Ownership or Designation of Operator forms for lease ADL 390615, the lease that will contain the top of the productive interval and the total depth of the well. Notice of Ownership or Designation of Operator forms, numbered 10-417 and 10-411 respectively, can be found on the Alaska oil and Gas Conservation Commission's web site at http:l/www.aogcc.alaska.gov/forms /f ormsindex.shtml. Please note that the permit to drill for Oliktok Point I-1 cannot be approved until these forms have been filed with, and approved by, the Commission. The approximate spud date for the well is November 1, so there is ample time for filing and processing of these forms. If you have any questions, please call me at (907) 793-1224. Thank you, Steve Davies Sr. Petroleum Geologist Alaska Oil and Gas Conservation Commission *Please note my E-Mail Address has changed. Please update your contact list* Anadarko Confdentiality Notice: This electronic transmission and any attached documents or other writings are intended only for the person or entity to which it is • ~ addressed and may contain information that is privileged, confidential or otherwise protected from disclosure. If you have received this communication in error, please immediately notify sender by return e-mail and destroy the communication. Any disclosure, copying, distribution or the taking of any action concerning the contents of this communication or any attachments by anyone other than the named recipient is strictly prohibited. *Please note my E-Mail Address has changed. Please update your contact Iist* Anadarko Confidentiality Notice: This electronic transmission and any attached documents or other writings are intended only for the person or entity to which it is addressed and may contain information that is privileged, confidential or otherwise protected from disclosure. If you have received this communication in error, please immediately notify sender by return a-mail and destroy the communication. Any disclosure, copying, distribution or the taking of any action concerning the contents of this communication or any attachments by anyone other than the named recipient is strictly prohibited. ___ 'Steve Davies THE ATTACHED CHECK IS IN PAYiv1ENT OF fTEMS BEL NOT CORRECT ASRC Energy Services PLEASE NOTIFY ACCOUNTS PAYABLE PROMPTLY. NOT DESIRED. rK nin ~ ~ a~~~ 09-OCT-06 STATE OF ALASKA 9~6 PERMITDRILL(10-401) 06-OCT-06 APPLICATION FOR PERMIT I i 100.00 ~ ASRC Energy Services TOTALS 3900 C Street n....ti,....,.,, n~.,,.~._ o . oo zoo . 00 Phone: (~07} 339-6200 vv DETACH AND RETAIN THIS STATEMENT ,,~~ Acco~cnts Pay~ibTe~ Check ~~ ~ ~ WELLS ~'A RGfI 4L4S~t V A. ~~~.~ Energ~/ Jam' e~`VIC85~ lNGNOR ~(, F; ALASK:S a su bsidiery of ArctJc Sippe geg(o~al CorROratiOn ?~ J ,\ ~<~-- 3900 CStreet Anchor~gge,Afaska 9950;3 ~ ~ Phone: (903 X39-620Q ~ ;;:' 'AY ~ ON"~HUNBRED,DOLLARS,INDZEROCE4TS, ''F* +* - STATE OF ALASKA orHE;"OIL & GAS CONSERVATION COMMISION ORDER OF,~ ' 333 WEST 7TH AVE STE 100 ':ANCHORAGE, AK 99501 ~. ~A~'E", e~I`ECK 11~fi 09~-OAT-~6 1193"23_ li'0~00 1 L 9 3 2 31i' ~: i 2 5 2000 5 7~: 3 7~~~ 78 2 7 L >:li• • TRANSMITTAL LETTER C~IECKLIST WELL NAME b~I<~a~~-~ o h~'~- '~.._ PTD# ZG7Co ' ~`t ~f Development Serviee L~ Exploratory Stratigraphic Test i\ion-Conventional Well Circle Appropriate Letter /Paragraphs to be Included in Transmittal Letter CHECK ADD-ONS TEXT FOR APPROVAL LETTER WHAT ~ (OPTIONS) APPLIES MtiLTI LATERAL i The permit is for a new wel(bore segment of existing I i ~ wet! !~ (If last two digits in j~ 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. PLOT HOLE j In accordance with 20 AAC 25.005(f), all records, data and fogs j ~ ,~ ~ acquired for the pilot hole must be clearly differentiated in both ~ ~ ~ well name ,~ ,~C - Z PH) and API number ~ (~0-D~,- 23 3 2(~- 7D) from records, data and logs I acquired for well ~~~~ o~:a~ 1 ,- ~ ~ SPACING EXCEPTION i The permit is approved subject to full compliance with 20 AAC ~ ~ 25.05. Approval to perforate and produce /inject is contingent I j upon issuance of a conservation order approving a spacing j exception. assumes the ~ liability of any protest to the spacing exception that may occur. ;DRY DITCH ~ All dry ditch sample sets submitted to the Commission must be in I SAMPLE i no greater than 30' sample intervals from below the permafrost or 1 from where samples are first caught and 10' sample intervals j ;' ,through target zones. j Non-Conventional ~ Please note the following special condition of this permit: ,production or production testing of coal bed methane is not allowed Well ~ for (name of well) until after (Company Name) has designed and implemented a water well testing program to provide baseline data j on water quality and quantity. (Com~anv Name} must contact the ~ (Commission to obtain advance approval of such water well testing Rev: 1 /25/06 C:~jodyltransmittal checklist • ~ ^^ N „ , ~ OD ai ~' ai °' v c' v;' ~ p' ~' I ~: ~~ ~ , o. o. 3. N 3 N'. 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O N M 'cf ~ CO f~ O W O N M st tp O ti O O O N N N N M it N N M M N N E W N N O O N M V N M M M M M I~ (fl I~ W O ~ M M M M_ M U ~ _ O .. c C L' ~ N 1~6 N l~6 N U O ~ ~ ~ ~ i ~ Q ~ 0~ p N !1W ~ LL O ~ W ~ C ~L ~ O ~... O ~ ~~~ J N C d ° ~ ~ 01 O ~ a o ' a ~.~ ~ ao U ~ X11 ~ a E s d tL a ~ rn w d ¢ W ~" ~ o d LL ~ ¢~ • Well History File APPENDIX Information of detailed nature that is not particularly germane to the Well Permitting Process but is part of the history file. To improve the readability of the Well History file and to simplify finding information, information of this nature is accumulated at the end of the file under APPENDIX. No special effort has been made to chronologically organize this category of information. ~-- } ~ ~, ~ ~~~1''1'''/®~`.If'i Surface Data Legging END OF WELL REPORT e~°r cee ~~r~®~°ata~ OLIKTOK POINT I-2, PB-1 & I-2 ~oC~ HALLIBURTON Sperry Drilling Services Surface Data Logging END OF WELL REPORT Kerr McGee Corporation OLIKTOK POINT I-2, PB-1 & I-2 ~~I Kerrll/tGee TABLE OF CONTENTS 1. General Information 2. Daily Summary 3. Daily Operations (I.A.D.C.) 4. Morning Reports 5. Bit Record 6. Mud Reports 7. Show Reports 8. Survey Report 9. Days vs Depth 10. Data CD 11. Formation Evaluation Logs 12. Show Logs 13. Engineering Log HALLIBURTON Sperry Drilling Services GENERAL WELL INFORMATION Company: Rig: Well: Field: Borough: State: Country: API Number: Sperry-Sun Job Number: Job Start Date: Job End Date (TD): North Reference: Declination: Dip Angle: Total Field Strength: Date Of Magnetic Data: Wellhead Coordinates N: Wellhead Coordinates W: SDL Engineers: Company Geologist: SDS Unit Number: Kerr McGee Corporation Nabors N245 Oliktok Point I-2 PB1 & I-2 Exploration North Slope Alaska United States 50-23326-00-70 AK-AM-0004794321 31St December 2006 30th February 2007 True 23.604 deg 80.943 deg 57619 NT November 26, 2006 North 70 deg 30 min 40.06 sec West 149 deg 51 min 46.25 sec D. Wilson, S. Jenkins, W. Hermanson, C Stringer C. Goddard / A. Heinrich 117 This summary covers the original hole, Oliktok Point I-2 PB1, the sidetrack designated Oliktok Point I-2 PB2 and the final hole Oliktok Point I-2. The original hole was sidetracked after drilling a pilot hole to 6715' MD / 3702' TVD. The well was cemented back and kick-off attained at 4279'. Directional drilling of the 6 3/4" hole continued from 9576' to 9747', TVD of 3504', when it was decided to side track again due to going out of the pay zone. A KOP for the open hole sidetrack was finally attained at a depth of 9175' MD, 3586' TVD. The horizontal continued to a final total depth of 12711' MD / 3599' TVD and was designated Oliktok Point I-2. t DAILY SUMMARY Kerr McGee Oliktok Point I-2 PB1, I-2 PB2 and I-2 ' 2_ CAI LY SUMMARY ' Oliktok Point I-2 PB1 ' 03 Jan 2007 Finish nipple up Diverter on Oliktok Point I-2 PB1 well. 04 Jan 2007 Spud exploratory well Oliktok Point I-2 BP1 at 06:30 hours. Clean out conductor, drill 13'/2" hole from 80' to 393' MD, performing gyro surveys. Formation consisted of gravels and clay. 05 Jan 2007 Directional drill 13'/2" hole from 393' to 2003' MD. First presence of methane gas was at 895'. Maximum gas 170 units at 1930'. Formation consisted of predominately silt with ' some gravel enterbeds and some clay interbeds. 06 Jan 2007 Directional drill 13'/2" hole from 2003' to 2580' MD / 2029.37' TVD, the 13'/2" hole section TD. Maximum gas recorded 215 units at 2380'. Formation consisted of predominately silt to 2352'. From 2352' lignite coal was encountered until 2420'. From 2420' to casing point the formation consisits of silt with thin interbedded coals. At 2580' circulated three bottoms up and performed short trip to 1120'. Circulate hole clean with three bottoms up. Trip out in preparation for running 10 3/4" casing. Circulate and condition mud. Repair top drive. Trip out to 2400' with 45 klbs over pull. Back ream and pump out from 2400' to 1785' with max drag of 65 klbs. Trip in from 1785' to 2545'. Wash and ream from 2545' to 2573'. Circulate bottoms up twice and pump 50 bbl Hi Vis sweep and circulate hole clean. Trip out to 2289' -hole tight and swabbing with 40 klbs over pull. Finish pulling out of hole with some tight spots. Rig up to run 103/" casing. 07 Jan 2007 Continue to rig up 103/4" casing tools. Run 62 joints (2525.15') 103/", 45.5 Ibs/ft, L-80 casing. Landed the top of the float collar at 2563' MD/2022' TVD. Rig down the casing tools. Rig up Howco tools. Circulate bottoms up. Run cement job as per cement program. Casing cemented in place @ 14:30 hrs. Rig down cementing equipment, nipple down flowline, knife valves, diverter lines and diverter. 08 Jan 2007 Finish nippling down diverter. Install Vetco MB 243 wellhead and test to 5000 psi. Nipple up three spools. Nipple back down due to wrong alignment of choke and kill valves. Turn DAILY SUMMARY KERR McGEE OLIKTOK POINT I-2 PB1, I-2 PB2 and I-2 spools 1 hole & begin nippling up again. Nipple up BOP s. Run Vetco test plug and joint of ' drill pipe. Make up TIW & grey valve. Fill BOP and stack with water. Retighten bell nipple bolts. Nipple down BOP's. Pull wellhead and replace with new wellhead. Test seals up to 5000 psi for 10 minutes. Work on kill lines. 09 Jan 2007 Attempt to test BOP's. Leak found on choke line. Retighten bolts and shell test BOP. Test BOP's from Driller panel. Pull Vetco test plug and set wear bushing. Rig up bails and elevators. Lay down 8" BHA. Pickup 9 7/8" Bit (MXL-IV), Sperry Motor with 1.5° bend, 9'/2" IBS, Sperry MWD tools. Download to MWD. Load Nukes. Trip in with non-mag flex DC's, 3 HWDP, Jars, 26 HWDP, 97/8" Ghost reamer @ 1137'. Unable to operate top drive, had to repair Glycol pump. Shallow test MWD. Trip in hole and pick up 36 joints 5" drill pipe. Rig up to test casing. 10 Jan 2007 Test 103/" csg to 2500 psi for 30 min. Slip and cut 100' drill line and service top drive. Tag plugs on top float collar at 2475'. Drill out float collar and firm cement in shoe track. Drill shoe at 2563' and clean out rat hole to 2580'. Drill 15' new 9 7/8" hole from 2580' to 2595'. Circulate and even mud weight to 9.5 ppg for formation leak-off test. Perform LOT at 103/4' shoe -max press 550 psi MW = 15.0 ppg at TVD 2022' with 9.5 ppg mud. A total of 2.5 bbls pumped with rig pump. Directional drill 9 7/8" hole from 2595' to 2750'. Repair stand pipe bleed off valve. Directional drill 9 7/8" hole from 2750' to 3694 ' MD/2524' TVD. 11 Jan 2007 Continued drilling 9 7/8" hole from 3694' to 5304'. 12 Jan 2007 Continued drilling 9 7/8" interval from 5304' to TD of 6715'. Circulated three bottoms up. Prepare to POOH. 13 Jan 2007 Pull out of hole with 9 7/8" BHA. Downloaded MWD. Lay down 9 7/8" BHA. Picked up 30 joints of 2 7/8" tubing. Run in hole on 5" drill pipe with same to lay cement plugs for sidetrack. Run in hole to 6715'. Circulate bottoms up. Pumped 1St cement plug and chase 2 DAILY SUMMARY KERR McGEE OLIKTOK POINT I-2 PB1, I-2 PB2 and I-2 with mud. Pull out of hole to 5815'. ' 14 Jan 2007 Finish pulling out of hole to 5815'. Circulate bottoms up. Dump 115 bbls of contaminated mud. Pump 2"a cement plug. Pull out of hole to 4915'. Circulate bottoms up. Pump 3~a cement plug. Pulled out of hole on 5" drill pipe with 2 7/8" stinger. Lay down stinger. Rig up to test BOP's and test same. Oliktok Point I-2 PB2 ' 15 Jan 2007 Finish testing BOP's. Test upper and lower IBOP's on top drive to 250/3000 psi for 5 min. Test equipment and blow down top drive and choke manifold. Rebuild 2 1/16" 10K gauge isolation valve. Break out saver sub and repair gripper die assembly on top drive. Pull Vetco wear bushing and reset test plug. Re-test valve #16 on choke manifold to 250/3000 psi for 5 min. Pull test plug and reset Vetco wear bushing. Pick up Bit (HTC EP5848), ' Sperry motor with 1.5° bend, stab and MWD tools. Program MWD tools and load nukes. Run BHA including three non magetic flex DC's, 3 x 5" HWDP, jars, 11 HWDP, 9 7/8" ghost reamer at 684'. Trip in hole from 684' to 3600', encountered a few intermittent '' cement stringers from 3300'. Wash down from 3600' to 4100' through cement stringers and drill on firm cement from 4100' to 4180'. 16 Jan 2007 Drill firm cement from 4180' to 4279'. Survey taken at 4229' showed hole start to kickoff on lowside. Start sliding to kick-off from old well at 4279'. Directional drill 9 7/8" hole from 4279' to 4579' MD. Circulate bottoms up. Pull back one stand. Repair Grabber on top drive and modify guide bowl to fit. Directional drill 9 7/8" hole from 4579' to 5800' MD/3407' TVD. 17 Jan 2007 Directional drill 9 7/8" hole from 5800' to 6709' MD/3578' TVD. Top drive overheated due to bower problem. Circulate and work pipe. Conduct a wiper trip to shoe. No hole problems with a maximum overpull of 40 klbs. Repair top drive blower. 3 I~ ~~~' DAILY SUMMARY KERR McGEE OLIKTOK POINT I-2 PB1, I-2 PB2 and I-2 18 Jan 2007 Completed repair work on top drive. Run back into the hole, drill 2 feet to the total depth of this section of the borehole. The total depth of this portion was 6711' MD, 3581' TVD, it was achieved at 6 a.m. Circulate hole clean. Pulled out of hole and laid down the BHA. Began setup to run in hole with 7 5/8", 29 Ib/ft. casing. 19 Jan 2007 Finished changing out BOP rams. Rigged up and run in hole with 7 5/8", 29.7 #/ft. casing ' to 6695'. Circulated the borehole clean, and cemented the casing in place. Displaced cement with 9.3 ppg MOBM. Dumped and cleaned mud pits while laying down 5" drill pipe. 20 Jan 2007 Lay down 5" drill pipe. Freeze protected annulus with diesel. Clean mud pits. Pick up 4 '/2" drill pipe. 21 Jan 2007 Pick up 4" HT 38 drill pipe and rack in derrick -total 405 joints. Fill pits with 9.3 ppg Invermul mud. Change out upper pipe rams to 4". Set Vetco test plug on 4" drill pie and tset BOP's. 22 Jan 2007 Test BOPs. Test 7 5/8" casing against blind rams to 2200 psi for 30 min. Pickup BHA. Surface test MWD. Ran in hole with 6.75" BHA. Complete oil base mud delivery. Picked up 12,000' of drill pipe for lateral. Complete BOP test. Pick up BHA, trip into hole. Prepare to tag and drill cement. 23 Jan 2007 Finish picking up HWDP and Jars. Trip in to 2700'. Test GeoPilot and Geospan signal. Trip in from 2700' and tag cement at 6279'. Clean out cement from 6279' to 6610'. Drill wiper plug and float collar. Change out Geospan. Drill shoe at 6695' and clean out to 6711'. Began drilling OA sand lateral from 6711 to 6731' and circulate bottoms up. Perform F.I.T. to 12.0 ppg EMW. Directional drill 6 3/4" hole from 6731' to 7056' Maximum total gas registered was 450 units at 6942' MD, TVD of 3584.62'. 4 DAILY SUMMARY KERR McGEE OLIKTOK POINT I-2 PB1, I-2 PB2 and I-2 24 Jan 2007 Extended the lateral from 6690 to 8669' MD (3579 TVD). The true vertical depth ranged from 3576.65 at a MD of 8564' to 3590.41' at 7522' MD. The maxiumum gas recorded on this date was 460 units at a depth of 6,930' MD, 3585' TVD. 25 Jan 2007 Directional drill 63/4" hole from 8700' to 9576'. Change out 2" valve on mud standpipe manifold and lay down one stand drill pipe. Directional drill 63/4" hole from 9576' to 9747', TVD of 3468.60ft, when it was decided to side track beginning at a measured depth of 9177.88'. Bit was tripped back to 9104' where positoning of the bit to side-track began. A dip in formation prior to 8500' MD (3575.5' TVD) caused the lateral to move outside the OA sand. The bit did not re-enter the sand until 8730' MD (3582.93' TVD). The gas encountered during the drilling of this section of hole ranged from 80 to 100 units. The maxiumum gas recorded on this date was 740 units at a depth of 8873' MD, 3589'. TVD Oliktok Point I-2 26 Jan 2007 Could not sidetrack at 9140', had to pull up to 9100', troughed 9100' to 9130' and time drilled from 9100' to 9125'. Start open hole sidetrack at 9125'. Directional drill 63/4" hole from 9125 to 10415'. The maxiumum gas recorded on this date was 910 units at a depth of 10,082' MD, 3608'. TVD. 27 Jan 2007 Extended the lateral from 10,415' to 12,218' MD (3599 TVD). The true vertical depth ranged from 3599.38' at a MD of 12,172' to 3610.48' at 10,753' MD. The maxiumum gas recorded on this date was 800 units at a depth of 11975' MD, 3599' TVD. 28 Jan 2007 Achieved an open hole total depth of 12,711' MD. Extended the lateral from 12,218' MD (3599 TVD) to 12,711.0'. MD (3599.42'). The true vertical depth ranged from 3599.36'. at 12,556 MD to 3600.39' at 12,267.75' MD. The maxiumum gas recorded on this date was 5 DAILY SUMMARY KERR McGEE OLIKTOK POINT I-2 PB1, I-2 P62 and I-2 770 units at a depth of 12,642'MD, 3599.6' TVD. 29 Jan 2007 Circulate three bottoms up and work drill pipe. Make up last stand and rig up to displace open hole to new mud. Pull out of hole. Clear floor and lay down Geopilot surface tools. Rig up and run 3-1/2" slotted liner. Put centralizers on top. Sperry Sun released, rig down Sperry unit. 6 DAILY ACTIVITY (LA.D.C.) KERB McGEE OLIKTOK POINT I-2 PB1, I-2 PB2 and I-2 3_ DAILY ACTIVITY ~I_A_D_C_~ Time Elapsed Code Operations Breakdown (hrs) Time OLIKTOK POINT I-2 P61 1 2-31 -06 08:00-00:00 1.00 01 Release rig from OPI-1 @ 0800 12/31/06. Rig maintanence & preparation for move to Oliktok I-2. Raised cellar box & cleaned cellar. Dropped hammer head down conductor on Oliktok I-2. 1-1-07 00:00-24:00 24.00 01 Make up diverter spool & Hydrill. Move to Oliktok I-2 & spot. Had to re-cut cellar box, would not fit over Oliktok I-1 tree. Set cellar box down. Moved & set ballmill. Continue to rig up Oliktok I-2. 1-2-07 00:00-12:00 12.00 01 Rig up water systems/boilers. Continue to rig up & battle against freezing temperatures & resultant frozen pipes, hoses & equipment. 12:00-00:00 12.00 01 Weld cement return fittings on conductor pipe. Rig up diverter. (Extreme cold temperatures have hampered progress causing multiple frozen pipes/hoses). 1-3-07 00:00-18:00 18.00 01 Repair frozen centrifuge, readjust 8< nipple up diverter line. Thaw & repair frozen pipes & hoses. Change out boots on flowline. Make repairs to shakers & rebuild centrifuge. Function test diverter & Koomey system -test. 18:00-22:00 4.00 01 Make up 11 1/2" fishing magnet & make several attempts to recover lost #16 hammer. Recovered piece of conductor pipe (cut out from valve installations). Still not able to use mud pumps. Thaw out charge pumps & lines & blow down mud pumps. Thaw out top drive IBOP valve & blow out ice blockage. 22:00-23:00 1.00 01 Break circulation slowly & check rig for leaks. 23:00-00:00 1.00 01 Wash & rotate down to 115' & work magnet. POOH -recover hammer head. 1-4-07 00:00-01:00 1.00 01 Accepted rig @ 00:01 hrs **Recover Hammer head on fishing magnet & lay down fishing tools. 01:00-03:00 2.00 21 Prejob safety meeting & pick up 13 1/2" Bit (HTC MX 1), 8" motor. Change bend to 1.83°. Orient tool & pick up 12" IBS & UBHO sub. 03:00-04:00 1.00 10 Rig up Sperry Gyro sheave in derrick. 04:00-06:30 2.50 08 Make up stand 5" HWDP & attempt to function top drive. Rack back stand in derrick. Repair top drive. Make up stand & attempt to circulate. Work on priming pumps & thawing out rod cooling systems. 06:30-11:00 4.50 02 Spud well @ 06:30 hrs -drill 13 1/2" hole with Sperry Gyro surveys from 115' to 218'. 11:00-12:30 1.50 06 Blow down top drive & pull back to HBHO sub & lay down same. 12:30-15:00 2.50 06 Pick up Sperry MWD tools HIVREG, FS, & UBHO sub. 15:00-17:00 2.00 06 Download to MWD tool. 17:00-18:30 1.50 06 Pick up 3 flex non-magnetic collars & jars. 18:30-19:00 0.50 10 Run Sperry Gyro Survey & orient toolface. 19:00-23:30 4.50 2 Directional drill 13 1/2" hole from 218' to 395'. WOB 10k, 465 gpm, 1200 psi, 147 rpm on motor, Last survey @ 326' Inc 3.81°, Az 311.06°, mud wt 9.4 ppg, rotating hrs 1.96, sliding hrs 3.15 23:30 24:00 0.50 10 Attempt to get MWD survey @ report time. 1 -5-07 00:00-00:30 0.50 10 Unable to get MWD survey. Rack back stand & take Sperry Gyro survey. 00:30-24:00 23.50 02 Directional drill 13 1/2' hole from 395' to 2003' MD, 1765' TVD. A total of 1608' new hole made in 23.5 hrs at an avg 68.4 ft/hr, WOB 20 - 25 K, SPP 1700, flow 482 gpm, ROP 120 ft/hr, 80 rpm + 127 rpm Motor, Mud wt 10.0 ppg, daily slide hrs 12.38, Daily rotating hrs 3.47, Last survey @ 1900.47' 44.5° 299.51° az. 1-6-07 00:00-04:30 4.50 02 Directional drill 13 1/2"' hole from 2003' to 2419'. 04:30-05:30 1.00 05 Circ for sample & correlate log with Geologist to determine secton TD. i 1 DAILY ACTIVITY (LA.D.C.) Time Elapsed Code (hrs) Time KERB McGEE OLIKTOK POINT I-2 PBl, I-2 PB2 and I-2 Operations Breakdown 05:30-06:30 1.00 02 Directional drill 13 1/2"' hole from 2419' to 2580' TD MD/2031' TVD. New hole 577' made in 5 1/2 hrs for avg ROP 105 ft/hr, WOB 20 K, SPP 1700 psi, flow 482 gpm, ROP 120 ft/hr, 80 rpm + 127 rpm motor, pick up wt 150 slack-off wt 120, rotate wt 135, mud wt 9.8 ppg, daily slide hrs 1.8, daily rotating hrs 2.2, Last survey @ 2510.28' inc 64.51°, Azi 303.72°. 06:30-08:00 1.50 OS Circulate hole clean 3 X CBU, 100 rpm, 585 gpm 8< 2100 psi. 08:00-09:00 1.00 08 Attempt to POOH. Back out saver sub. Lay down 2 jts. Work on top drive saver sub. 09:00-14:00 5.00 06 Wiper trip from 2520' to 1120' -hole in good condition. Trip back to bottom - no fill. I 14:00-16:00 2.00 05 Circulate hole clean with 3 bottoms up at 100 rpm, 585 gpm, 2100 psi. 16:00-19:30 3.50 06 POOH to MWD tools. 19:30-20:30 1.00 06 Down load memory from MWD. 20:30-21:30 1.00 06 Lay down MWD tools, motor & bit. Bit - As new condition. 21:30-24:00 2.50 12 1 Pick up up 10 3/4" csg tools. 1-7-07 00:00-02:30 2.50 12 Continue to rig up 10 3/4" csg tools. 02:30-08:30 6.00 12 Run 62 jts (2525.15') 10 3/4" 45.5 Ibs/ft, L-80 csg with BTC. Land csg shoe @ 2563' MD/2022' TVD top float collar. 08:30-11:30 3.00 12 Rig down casing tools. Rig up Howco tools. Circulate bottoms up. 11:30-12:00 0.50 12 PJSM for cement job. Pump 5 bbls water, test lines to 3000 psi - OK. 12:00-12:30 0.50 12 Drop bottom plug. Pump 50 bbls Alpha Spacer @ 10.0 ppg. 12:30-13:30 1.00 12 Mix & pump 336 bbls (457 sx) type L Permafrost cement at 7 bpm, 400 psi, 10.7 ppg, 20.3 gal/sk, 4.15 ft3/sk. 13:30-14:00 0.50 12 Mix & pump 47 bbls (228 sx) Premium cement at 4 bpm, 575 psi. Drop top plug. Pump 10.0 bbls water. 14:00-14:30 0.50 12 Displace with rig pump at 8 bpm & 460 psi. Bump plug with 1500 psi, at 2250 stks. Casing in place @ 14:30 hrs. Approx 100 bbls cmt returns to surface. 14:30-18:00 3.50 12 Rig down Howco. Back out landing joint & lay down same. 18:00-24:00 6.00 14 Nipple down flowline, knife valves, diverter lines & diverter. 1 -8-07 00:00-01:00 1.00 14 01:00-04:00 3.00 14 04:00-22:00 18.00 14 22:00-24:00 2.00 14 1 -9-07 00:00-01:00 1.00 14 01:00-08:00 7.00 15 08:00-09:00 1.00 15 09:00-12:00 3.00 06 12:00-16:00 4.00 06 16:00-19:00 3.00 06 19:00-21:00 2.00 06 21:00-21:30 0.50 08 21:30-22:00 0.50 05 22:00-23:30 1.50 06 23:30-24:00 0.50 15 Nipple down diverter. Install Vetco MB 243 wellhead & test to 5000 psi. Nipple up 3 spools. Nipple back down due to wrong alignment of choke & kill valves. Turn spools 1 hole 8< begin nippling up again. Nipple up BOP's. Run Vetco test plug & joint of DP. Make up TIW & grey valve. Fill BOP & stack with water. Retighten bell nipple bolts. Attempt to test BOP's. Leak found on choke line. Retighten bolts & shell test BOP. Test BOP's from Driller panel. All tests charted. Test 5" pipe rams, VBR rams, blind rams & annular to 250/3000 psi for 5 min. Test 16 valves on choke manifold, manual choke/kill & HCR valves to 250/3000 psi for 5 min. Test 5" TIW, 5" Grey valve, upper & lower top drive IBOP's to 250/3000 psi for 5 min. Pull Vetco test plug & set wear bushing. Rig up bails & elevators. Blow down top drive & choke manifold. Pull out strip-o-matic. Lay down 8" BHA. PJSM. Pick up 9 7/8" Bit (MXL-IV), Sperry Motor with 1.5° bend, 9 1/2 "IBS, Sperry MWD tools. Download to MWD. Hold PJSM 8< load Nukes. RIH with non-mag flex DC's, 3 HWDP, Jars, 26 HWDP, 9 7/8" Ghost reamer @ 1137'. Unable to operate top drive. Repair Glycol pump. Shallow test MWD. Blow down top drive. RIH & pick up 36 jts 5" DP. Rig up & test casing to 2500 psi for 30 min. 1-10-07 00:00-01:30 1.50 14 Test 10 3/4" csg to 2500 psi for 30 min. 01:30-03:30 2.00 09 Slip & cut 100' drill line. 03:30-04:30 1.00 07 Service top drive & blocks. Service & reset COM. 2 DAILY ACTIVITY ~La.n.c.) KERB McGEE OLIKTOK POINT I-2 PBl, I-2 PB2 and I-2 Time Elapsed Code Operations Breakdown (hrs) Time 04:30-06:00 1.50 21 Tag plugs on top float collar @ 2475'. Drill out float collar & firm cement in shoe track. Drill shoe @ 2563' & clean out rat hole to 2580'. 06:00-06:30 0.50 02 Drill 15' new 9 7/8" hole from 2580' to 2595'. 06:30-07:30 1.00 05 Circulate & even mud wt to 9.5 ppg for LOT. 07:30-08:00 0.50 05 Perform LOT@ 10 3/4" shoe -max press 550 psi EMW = 15.0 ppg at TVD 2022' with 9.5 ppg mud. A total of 2.5 bbls pumped with rig pump. 08:00-10:00 2.00 02 Directional drill 9 7/8" hole from 2595' to 2750'. 10:00-11:00 1.00 08 Repair standpipe bleed off valve. 11:00-24:00 13.00 02 Directional drill 9 7/8" hole from 2750' to 3694 MD/2524' TVD. A total of 1114' new hole made in 15.5 hrs for an avg 72 ft/hr, WOB 7 - 15 K, Torq 2500, SPP 2000 psi, flow 550 gpm, Inst. ROP 160 ft/hr, 80 rpm + 130 rpm Motor, pick up wt 175, SO wt 125, Rot wt 125, Mud wt 9.4 ppg, Avg BG 24 units, daily slide hrs 2.8, daily Rot hrs 7.2, Last survey @ 3654.05' Inc 64.08°, Az 305.0°. 1-11-07 00:00-24:00 24.00 02 Directional drill 9 7/8" hole from 3694' to 5435' MD / 3222' TVD. A total of 1741' new hole made in 24 hrs, Avg ROP 72.5 ft/hr, WOB 8 -12 K, TQ 2500, SPP 2300, gpm 550, Inst. ROP 160, 80 rpm + 130 rpm Motor, pick up wt 190, SO wt 120, Rot wt 140, Mud wt 9.6 ppg Avg ECD 10.06 ppg, Avg BG 10 units, Daily slide hrs 2.75, Daily Rot hrs 19.6, Last survey @ 5398.03' Inc 67.45°, Az 302.59°. 1 -1 2-07 00:00-14:00 4.00 02 Directional drill 9 7/8" hole from 5435' to 5590'. 14:00-14:30 0.50 07 Service top drive 8, rig. 14:30-20:30 6.00 02 Directional drill 9 7/8" hole from 5590' to 6715' MD/3699' TVD. A total of 1280' new hole made in 20 hrs for an avg ROP 64 ft/hr, WOB 8 -12 K, torq 2500, SPP 2750, flow 600 gpm, inst ROP 150 ft/hr, 80 rpm + 180 rpm Motor, pick up wt 220, slack-off wt 115, rot wt 150, Mud wt 9.8 ppg, Avg ECD 10.4 ppg, Daily slide hrs 0.75, Total section 6.05 Hrs, Daily Rot hrs 13.5 Total section 33.03 Hrs, Avg BG 30 units, Max BG 921 units, Last survey @ 6674.35' Inc 65.65°, Az 306.36°. 20:30-23:30 3.00 05 Circ three bottoms up at 600 gpm & 100 rpm. 23:30-24:00 0.50 O6 POOH from 6715' to 6315' & pump slug. ~ 1 -13-07 00:00-6:00 6.00 06 POOH to MWD tools. Max o'pull 70 K @ 6000' remainder of hole in good condition. 06:00-10:00 4.00 06 PJSM. Pull Nukes & download MWD memory. 10:00-12:00 2.00 06 Rack back MWD tools 8 lay down motor, stab & bit. Grading 7 - 7 - WT - E - 3/16 -out. Clear & clean rig floor. 12:00-15:30 3.50 06 Rig up & pick up mule shoe & 30 jts 2 7/8" cement stinger (total 930'). Rig down tubing tongs. 15:30-16:00 0.50 07 1 Service top drive & rig. 16:00-20:30 4.50 06 Continue to RIH with 5" DP to 6715'. Break circulation every 20 stands. 20:30-21:30 1.00 05 Circulate bottoms up. Mud wt 9.8 ppg, 12 bpm & 1600 psi. PJSM prior to cement job. 21:30-22:30 1.00 17 Set Cement plug # 1 between 6715' to 5815' (900'). Test lines to 2500 psi. Pump 20 bbls water. Mix & pump 94.1 bbl slurry @ 15.8 ppg (460 sx) class G premium cmt + .5 % Halad 344 + .2% CFR-3 + .1% HR-5. Yield 1.15 ft3/stk. Displace to balance with 5 bbls water + 96 bbls mud. 22:30-23:30 1.00 06 POOH to 5815'. "While cleaning up Halliburton Pump truck, wiring shorted out rendering truck out of service. Halliburton sending replacement. 23:30-24:00 0.50 05 Drop nerf ball &Circ bottoms up at 12 bpm & 1500 psi. Aprox 5 1 bbls cement seen at shakers. 1-14-07 00:00-4:00 4.00 21 Continue to circulate @ 5815' while waiting on replacement Halliburton pump truck. Hold PJSM. 04:00-05:30 0.50 17 Set Cement plug # 2 at 4915' to 5815' (900'). Test lines to 2500 psi. Pump 20 bbls water. Mix & pump 94.1 bbl slurry @ 15.8 ppg (460 sx) class G premium cmt + .5 % Halad 344 + .2% CFR-3 + .1% HR-5. Yield 1.15 ft3/sk. Pump @ 5 1/2 bpm @ 1250 psi. Displace to balance with 5 bbls water + 80 bbls mud @ 10.0 ppg. 3 DAILY ACTIVITY ~.A.n.c.) KERB McGEE OLIKTOK POINT I-2 PB1, I-2 PB2 and I-2 Time Elapsed Code Operations Breakdown (hrs) Time 05:30-06:30 1.00 06 Pull back 10 stands to 4915'. 06:30-07:30 1.00 05 Circulate bottom up. A total of 2 bbls cement seen @ surface. 07:30-08:30 1.00 17 Kick-off plug from 4296' to 4915' (619'). Test lines to 2500 psi. Pump 20 bbls water. Mix & pump 72.7 bbl slurry @ 17 ppg (409 sx) class G premium cmt + .5 % Halad 344 + .75% CFR-3 + .1% HR-5. Yield 1.00 ft'/sk. Displace to balance with 5 bbls water + 66 bbls mud. 08:30-10:00 1.50 05 POOH to 4000' & Circuate bottoms up. A total of 5 bbls cmt seen at surface. 10:00-12:00 2.00 06 Pump slug & POOH. 12:00-16:00 4.00 06 Rig up tubing tongs & lay down 2 7/8" cement stinger. Rig down tubing tools & clean rig floor. 16:00-17:00 1.00 15 Pull Vetco wear bushing & rig up to test BOP. 17:00-21:30 3.50 15 Test BOP's. *** John Crisp AOGCC, notified 1/14/07 @ 1400 hrs & gave permission to test BOP's. without AOGCC agent present. All tests charted. Testd 5" pipe rams, VBR rams, blind rams & annular to 250/3000 psi for 5 min. Test 15" valve on choke manifold, manual choke/kill & HCR valves to 250/3000 psi for 5 min. Test 5" TIW, 5" Grey valve 250/3000 psi for 5 min. Test all visual 8< audio alarms - OK. Valve # 16 (gauge isolation valve) on choke manifold failed to test. No spares @ rig. 21:30-23:30 2.00 15 Attempt to test upper & lower IBOP's on top drive without success. OLIKTOK POINT I-2 PB2 1-15-07 00:00-3:00 3.00 15 Finish testing BOP's. Test upper & lower IBOP's on top drive to 250/3000 psi for 5 min. 03:00-04:00 1.00 15 Test equip & blow down top drive & choke manifold. 04:00-12:00 8.00 08 Rebuild 2-1/16 10K gauge isolation valve #16. Break out saver sub & repair gripper die assembly on top drive. Pull Vetco wear bushing & reset test plug. Re-test valve #16 on choke manifold to 250/3000 psi for 5 min. Pull test plug & reset Vetco wear bushing. 12:00-14:00 2.00 06 Pick up Bit (HTC EP5848), Sperry motor with 1.5° bend, stab & MWD tools. 14:00-18:00 4.00 06 PJSM & program MWD tools & load nukes. 18:00-20:00 2.00 06 Run BHA including 3 non mag flex DC's, 3 x 5" HWDP, jars, 11 HWDP, 9 7/8" ghost reamer @ 684'. Shallow test MWD. 20:00-22:30 2.50 O6 RIH from 684' to 3600'. Few intermittent cement stringers from 3300'.' 22:30-24:00 1.50 03 Wash down from 3600' to 4100' thru cement stringers 8. drilling on firm cement from 4100' to 4180'. 0 - 15 WOB, 550 gpm 2200 psi, 60 rpm rotary + 158 rpm on motor, Mud wt 9.5 ppg. 1-16-07 00:00-01:30 1.50 03 Drill firm cement from 4180' to 4279'. Survey taken @ 4229' showed hole start to kickoff on lowside. 01:30-05:00 3.50 02 Start sliding to kick-off from old well @ 4279' Directional drill 9 7/8" hole from 4279' to 4579' MD. 05:00-05:30 0.50 05 Circulate bottoms up. 05:30-07:30 2.00 08 Pull back 1 std. Repair Grabber on top drive & modify guide bowl to fit. 07:30-24:00 16.5 02 Directional drill 9 7/8" hole from 4579' to 5800' MD/3407' TVD. A total of 1521' new hole in 20 hrs Avg ROP 76' hr, WOB 7 - 15 K, TO 8500, SPP 2400 psi, gpm 550, Inst. ROP 170, 80 rpm + 130 rpm Motor, pick up wt 205, SO wt 11,0 Rot wt 140, Mud wt 9.6 ppg Avg ECD 9.9 ppg, Avg BG 21 units, Max BG 91 units, Daily slide hrs 2.55, Daily Rot hrs 8.23, Last survey @ 5749.24' Inc 66.91°, Az 305.67°. 1-17-07 00:00-17:00 17.0 02 Directional drill 9 7/8" hole from 5800' to 6709' MD/3578' TVD. A total of 909' new hole made in 17 hrs Avg Rop 53.5' hr, WOB 7 - 15 K, TQ 8500, SPP 2600 psi, gpm 550, Inst. ROP 130, 80 rpm + 130 rpm Motor, pick up wt 210, SO wt 110, Rot wt 142, Mud wt 9.8 ppg, Avg ECD 10.3 ppg, Avg BG 150 units, Max BG 1684 units, Daily slide hrs 4.5, Daily Rot hrs 7.3, Last survey @ 6598' Inc 85.88°, Az 305.29°. 17:00-18:00 1.00 05 Top drive overheating. circulate & inspect top drive. Problem with blower. Circulate & work pipe. 18:00-20:30 2.50 06 Wiper trip to shoe. No hole problems. Max o'pull 40 k. 20:30-24:00 3.50 08 Repair top drive blower. 4 i DAILY ACTIVITY (LA.D.C.) Time Elapsed Code (hrs) Time KERB McGEE OLIKTOK POINT I-2 PB1, I-2 PB2 and I-2 Operations Breakdown 1 -1 8-07 00:00-02:30 2.50 12 Rig up 7 5/8" csg tools. 02:30-24:00 21.50 12 Run 7 5/8" csg # 29.7 L-80 BTC-M. Casing ran at report time. At ', 6664.5' pick up landing joint. 1 -1 9-08 00:00-02:30 2.50 12 Rig up 7 5/8" csg tools. 02:30-12:00 9.50 12 Run 162 jts (6658') 7 5/8" csg 29.7# L-80 BTC-M. Land casing shoe @ 6696' MD / 3579' TVD 7 5/8 Hanger. LOP = 35.7' RKB. Top of float collar @ 6611' MD. 12:00-13:30 1.50 12 Rig down Franks fillup tool &csg tools. Rig up cement head. 13:30-14:30 1.00 05 Circulate bottoms up. Hold cementing PJSM. 14:30-16:00 1.50 12 Cement 7 5/8" Csg. Pump 10 bbls water. Test lines to 3500 psi. Pump 50 bbls Dual spacer @ 11 ppg. Mlx & pump 89.8 bbls (438 ', sxs) Premium class G cmt +0.5% Halad 344 + 0.2% CFR-3 + 0.1% ~ HR-5. 15.8 ppg slurry Yield = 1.15 ft'/sx 5 gal/sk water. Displace with 295 bbls Enviromul Mud @ 9.3 ppg. Bump plug with 2900 psi float held OK. Casing in place @ 16:00 hrs. Top of cement @ ~I 5000'. ~, ~ 16:00-19:00 3.00 12 Rig down casing tools & lay down landing joint. Set 7 518" packoff & test to 5000 psi. Set Vetco test plug prior to laying down 5" DP. 19:00-24:00 5.00 06 Rig up 8~ lay down 5" DP -Iron roughneck unable to break 5" DP. Tong torque sensor @ 40 k to break DP. Note: 24 of 180 layed down @ report time. Start cleaning pits for Enviromul Mud. @ 21:00 hrs pumped 120 bbls diesel down 10 3/4" X 7 5/8 "annulus for freeze protection @ 1.75 bpm with max 1100 psi. Shut down pressure 550 psi. 1-20-07 00:00-11:00 11.00 06 Lay down 5" DP & clean pits. Lay down a total of 180 jts in 17 hrs - avg 11 jts/hr. 11:00-19:00 8.00 26 Change out saver subs & service top drive. Repair iron roughneck. Remove 5" DP from pipe shed & bring in 4" HT 38 Ib/ft into pipe shed & prepare to pick up. Finish cleaning mud pits & prepare for Invermul mud. Took 4 men total 24 hrs to clean pits. 19:00-21:30 2.50 06 Start to pick up 4" HT 38 DP. 21:30-23:30 2.00 08 Repair /weld broken skate. 23:30-24:00 0.50 O6 Pick up 4" DP. 60 of 365 joints pcked up for an avg 20 jts/hr. 1-21-07 00:00-17:00 17.00 06 Pick up 4" HT 38 DP & rack in derrick. Total 405 jts. Fill pits with 9.3 ppg Invermul mud. 17:00-20:00 3.00 14 Change out upper pipe rams to 4". 20:00-24:00 4.00 15 ~ Set Vetco test plug on 4" DP & test BOP's. Test annular 8~ upper pipe rams to 250/3000 psi for 5 min. Test upper & lower IBOP's on top drive to 250/3000 psi for 5 min. Test Choke manifold valves to 250/3000 psi for 5 min. 1-22-07 00:00-05:00 5.00 15 Finish Testing BOP's. Test all rams & annular to 250/3000 psi for 5 min each. Test choke manifold, choke/kill valves & HCR to 250/3000 psi for 5 min each. Test 4" TIW, Grey valve, upper & lower IBOP's on top drive to 250/3000 psi. Pull Vetco test plug & set wear bushing. 05:00-07:00 2.00 15 Test 7 5/8" Csg against blind rams to 2200 psi for 30 min. Blow down top drive & choke manifold. 07:00-12:00 5.00 09 Slip 8: cut 100' drill line & service top drive, blocks & crown. Bolt sheared on tiedown clamp. Change out clamp bolts for drill line. 12:00-15:30 3.50 06 Arrange Sperry tools in pipe shed 8~ prepare to pick up tools. Hold PJSM. 15:30-19:30 4.00 O6 Pick up 6 3/4" GeoPilot, Sperry MWD & Smart tools. 19:30-24:00 4.50 06 Uplink to Sperry tools. Hold PJSM & load Nukes. Shallow test MWD. Pick up Bat Sonic tool. 1 -23-07 00:00-01:00 1.00 O6 Finish picking up HWDP & Jars. 01:00-03:00 2.00 06 RIH to 2700'. 03:00-04:00 1.00 05 Test GeoPilot & Geospan signal. 04:00-08:30 4.50 06 RIH from 2700'. Tag cement at 6279'. 08:30-10:00 1.50 06 Clean out cement from 6279' to 6610'. 5 DAILY ACTIVITY (LA.D.C.) KERB McGEE OLIKTOK POINT I-2 PB1, I-2 PB2 and I-2 Time Elapsed Code Operations Breakdown (hrs) Time 10:00-12:00 2.00 02 Drill wiper plug & float collar @ report time. 12:00-13:30 1.50 10 Change out Geospan. 13:30-15:00 1.50 02 Drill shoe @ 6695' 8~ clean out to 6711'. 15:00-15:30 0.50 02 Directional drill 6 3/4" hole from 6711 to 6731' & circulate bottoms up. 15:30-16:00 0.50 21 Perform F.I.T. to 12.0 ppg EMW. 16:00-17:00 1.00 02 Directional drill 6 3/4" hole from 6731' to 6802'. 17:00-19:30 2.50 10 Attempt to get survey. 19:30-24:00 4.50 02 Directional drill 6 3/4" hole from 6802' to 7056'. 1-24-07 00:00-05:00 5.00 02 Directional drill 6 3/4" hole from 7056' to 7373'. 05:00-09:30 4.50 10 Work on Geospan. Pull 1 stand & continue to work on Geospan. 09:30-24:00 14.50 02 Directional drill 6 3/4" hole from 7469' to 8700'. Last Survey @ 8564.45 -Inc 90.17°, Az 323.54°. 1-25-07 00:00-13:30 13.50 02 Directional drill 6 3/4" hole from 8700' to 9576'. 13:30-14:30 1.00 08 Change out 2" valve on mud standpipe manifold & lay down 1 stand DP. 14:30-17:00 2.50 02 Directional drill 6 3/4" hole from 9576' to 9747'. 17:00-18:00 1.00 06 POOH to 9140'. 18:00-18:30 0.50 21 Wait on open hole sidetrack orders. OLIKTOK POINT I-2 18:30-24:00 5.50 20 Troughing & time drilling for open hole sidetrack from 9084' to 9140'. 1 -26-07 00:00-04:00 4.00 20 Could not sidetrack @ 9140'. Pull up to 9100', troughed 9100' to 9130' & time drilled from 9100' to 9125'. 04:00-24:00 20.00 20 Start open hole sidetrack @ 9125'. Directional drill 6 3/4" hole from 9125 to 10415'. ' 1-27-07 00:00-04:45 4.75 02 Directional drill 6 3/4" hole from 10415' to 10715'. 04:45-05:30 0.75 21 Stand back & wait on orders from Geology. 05:30-19:00 13.50 02 Started to build angle @10715' & drilled to 11920'. 19:00-19:45 0.75 21 Lost power. Work on generators 8 SCR. Restore power to rig. 19:45-24:00 4.25 02 Directional drill 6 3/4" hole from 11920' to 12222'. Last survey 12,172.82 MD, Inc 90.29°, Azi 319.69°. 1 -28-07 ' 00:00-04:30 4.50 02 Directional drill 6 3/4" hole from 12222' to 12711' TD. 04:30-07:30 3.00 05 Circulate 3 bottoms up. 07:30-18:00 10.50 06 Short trip to shoe @ 6695'. Back Ream out of hole. 18:00-18:30 0.50 07 Service top drive. 18:30-22:00 3.50 06 RIH to 12711'. 22:00-2400 2.00 05 Circulate 3 bottoms up. 1 -29-07 00:00-01:30 1.50 05 Circulate 3 bottoms up & work DP. 01:30-02:00 0.50 06 Make up last stand &PJSM. 02:00-02:45 0.75 05 Rig up to displace open hole to new mud, 285 bbl, disp with 18 bbls 02:45-12:00 9.25 06 Pull 3 stands. Pump pill. 12:00-13:30 1.50 06 POOH to nukes. PJSM on nukes & removed same. 13:30-14:00 0.50 06 POOH. Lay down MWD tools. 14:00-15:30 1.50 21 Download MWD & LWD tools. 15:30-17:00 1.50 06 POOH & lay down GeoPilot tools. 17:00-18:00 1.00 O6 Clear floor & lay down Geopilot surface tools. 18:00-24:00 2.00 12 Rig up & run 3-1/2" slotted liner. Put centralizers on top. ° ~ S err Kerr McGee Report # 0 p Y Oliktok Point Alaska Drilling Services Daily Operations Report WELL: Oliktok Point I-2 P61 RIG: Nabors-245 DATE: 05-Jan-07 TIME: 12:00:00 AM DEPTH (MD); 394 DEPTH (TVD) : 3sa MUD WEIGHT: s.s ECD: CHLORIDES (mg/L): PWD Surface FIT: Downhole LWD LOT: PORE PRESSURE: Background GAS: s SURVEY DEPTH: 32s.s Drilling HRS: s.o INCL: 3.at Cum. HRS: s.o AZIM: 3t~.oo Metal Shavings: o TVD 32s.s Cum. Shavings: o PREVIOUS 24 HOUR SUMMARY LITHOLOGY LCM: SH: SLTST: SAND CHT COAL CLYST CMT: TRIP GAS: UNITS C~ MD TVD CONN GAS: NA UNITS C~ NA MD NA TVD CONN GAS: NA UNITS C~ NA MD NA TVD CONN GAS: NA UNITS Co3 NA MD NA TVD CONN GAS: NA UNITS @ NA MD NA TVD CONN GAS: NA UNITS @ NA MD NA TVD CONN GAS: NA UNITS @ NA MD NA TVD BACKGRND GAS: 9 UNITS NA MAX GAS: 9 UNITS Q MD TVD AVG ROP: 37.5 fUhr (24 hr) GC Depth: C1=13 C2=0 C3 = I-4. N-4= I-5= N-5= DRILL BRE4KS~ INTERVAL DRILL RATE GAS Show/ZOI FROM TO BEFORE DURING AFTER BEFORE DURING AFTER ACTIVITY, PREVIOUS 24 HOURS Spud Oliktok I - 2, drilling with gyro measurements at connections. PLANNED ACTIVITY Continue drilling Engineer: Chuck Stringer err S Kerr McGee Report # 0 p y Oliktok Point Alaska Drilling Services Daily Operations Report WELL: Oliktok Poi nt I-2 PB1 RIG: Nabors-245 DATE: 05-Jan-07 TIME: 12:00:00 AM DEPTH (MD): 2002 DEPTH (TVD) : 1763 MUD WEIGHT: 10.1 ECD: CHLORIDES (mg/L): 50,000 PWD Surface FIT: Downhole LWD LOT: PORE PRESSURE: Background GAS: 127 SURVEY DEPTH: 1soo.a7 Drilling HRS: 2a.o INCL: 44.59 Cum. HRS: 30.0 AZIM: 2ss.s1 Metal Shavings: o TVD Cum. Shavings: o PREVIOUS 24 HOUR SUMMARY LITHOLOGY 1900 Silt: Lt gry,amorph-incr hyd in smpl,clgy grdg to cly,ncalc,intbd w/cly guly vstt-sft 60% silt, 20% clay 20% gravel LCM: SH: SLTST: 6o i° SAND CHT COAL CLYST CMT: TRIP GAS: UNITS @ MD TVD CONN GAS: NA UNITS @ NA MD NA TVD CONN GAS: NA UNITS @ NA MD NA TVD CONN GAS: NA UNITS @ NA MD NA TVD CONN GAS: NA UNITS (~ NA MD NA TVD CONN GAS: NA UNITS @ NA MD NA TVD CONN GAS: NA UNITS @ NA MD NA TVD BACKGRND GAS: 127 UNITS 1789 NA MAX GAS: 138 UNITS @ 1800 MD TVD AVG ROP: 7o tvnr ~2a nr) GC Depth: C1=54 C2=0 C3 = I-4= N-4= I-5= N-5= DRILL BREAKS: INTERVAL DRILL RATE GAS Show/ZOI FROM TO BEFORE DURING AFTER BEFORE DURING AFTER ACTIVITY, PREVIOUS 24 HOURS Drilled ahead . PLANNED ACTIVITY Continue drilling to 2600 Engineer: Steven Jenkins S err Kerr McGee Report # 0 r Y Oliktok Point Alaska ~Pl~~lllg S@1"VIC@S Daily Operations Report WELL: Oliktok Point I-2 PB1 RIG: Nabors-245 DATE: o7-,Ian-o7 TIME: 2400 hrs DEPTH (MD): 25ao DEPTH (TVD) : 2o2s MUD WEIGHT: io.i ECD: CHLORIDES (mg/L): 50,000 PWD Surface FIT: Downhole LWD LOT: PORE PRESSURE: Background GAS: io5 SURVEY DEPTH: 251o.2s Drilling HRS: INCL: x4.51 Cum. HRS: 2s.2 A21M: sos.72 Metal Shavings: o TVD isss.s5 Cum. Shavings: o PREVIOUS 24 HOUR SUMMARY LITHOLOGY LCM: SH: SLTST: SAND CHT COAL CLYST CMT: TRIP GAS: UNITS @ MD TVD CONN GAS: NA UNITS @ NA MD NA TVD CONN GAS: NA UNITS @ NA MD NA TVD CONN GAS: NA UNITS @ NA MD NA TVD CONN GAS: NA UNITS @ NA MD NA TVD CONN GAS: NA UNITS @ NA MD NA TVD CONN GAS: NA UNITS @ NA MD NA TVD BACKGRND GAS: 30 UNITS 2580 Circ NA MAX GAS: 30 UNITS @ MD TVD AVG ROP: fbhr (24 hr) GC Depth: C1= C2=0 C3 = I-4= N-4= I-5= N-5= DRILL BREAKS: INTERVAL DRILL RATE GAS Show/ZOI FROM TO BEFORE DURING AFTER BEFORE DURING AFTER ACTIVITY, PREVIOUS 24 HOURS Run 10.75" casing Trip gas after running casing 20 units PLANNED ACTIVITY Nipple up BOP Engineer: Steven Jenkins S err Kerr McGee Report # p Y Oliktok Point Alaska Drilling Services Daily Operations Report WELL: Oliktok Point I-2 PB1 RIG: Nabors-245 DATE: o7-,Ian-o7 TIME: 2aoo hrs DEPTH (MD): z5so DEPTH (TVD) : 2ozs MUD WEIGHT: s.a ECD: CHLORIDES (mg/L): so,ooo PWD Surface FIT: Downhole LWD LOT: PORE PRESSURE: Background GAS: so SURVEY DEPTH: z5lo.zs Drilling HRS: INCL: sa.s1 Cum. HRS: AZIM: aos.7z Metal Shavings: o TVD 1sss.ss Cum. Shavings: o PREVIOUS 24 HOUR SUMMARY LITHOLOGY LCM: SH: SLTST: SAND CHT COAL CLYST CMT: TRIP GAS: UNITS @ MD TVD CONN GAS: NA UNITS @ NA MD NA TVD CONN GAS: NA UNITS C~ NA MD NA TVD CONN GAS: NA UNITS C~ NA MD NA TVD CONN GAS: NA UNITS Q NA MD NA TVD CONN GAS: NA UNITS Q NA MD NA TVD CONN GAS: NA UNITS @ NA MD NA TVD BACKGRND GAS: 30 UNITS Circ na Circ NA MAX GAS: na UNITS C~ MD TVD AVG ROP: fUhr (za hr) GC Depth: C1= C2=0 C3 = I-4= N-4= I-5= N-5= DRILL BREAKS: INTERVAL DRILL RATE GAS Show/ZOI FROM TO BEFORE DURING AFTER BEFORE DURING AFTER ACTIVITY, PREVIOUS 24 HOURS Run 10.75" casing Trip gas after running casing 20 units PLANNED ACTIVITY Nipple up BOP Engrneer: Steven Jenkins err S Kerr McGee Report # C~ y p Oliktok Point Alaska Drilling Services Daily Operations Report WELL: Oliktok Point I-2 PB1 RIG: Nabors-245 DATE: o8-.Ian-o7 TIME: 2400 hrs DEPTH (MD): 25so DEPTH (TVD) : 2o2s MUD WEIGHT: s.5 ECD: CHLORIDES (mg/L): 50,000 PWD Surface FIT: Downhole LWD LOT: PORE PRESSURE: Background GAS: so SURVEY DEPTH: 2510.28 Drilling HRS: INCL: x4.51 Cum. HRS: AZIM: soa.72 Metal Shavings: o TVD 1998.95 Cum. Shavings: o PREVIOUS 24 HOUR SUMMARY LITHOLOGY LCM: SH: SLTST: SAND CHT COAL CLYST CMT: TRIP GAS: UNITS @ MD TVD CONN GAS: NA UNITS @ NA MD NA TVD CONN GAS: NA UNITS @ NA MD NA TVD CONN GAS: NA UNITS @ NA MD NA TVD CONN GAS: NA UNITS @ NA MD NA TVD CONN GAS: NA UNITS @ NA MD NA TVD CONN GAS: NA UNITS @ NA MD NA TVD BACKGRND GAS: na UNITS na Circ NA MAX GAS: na UNITS @ MD TVD AVG ROP: fUhr (24 hr) GC Depth: C1= C2=0 C3 = I-4= N-4= I-5= N-5= DRILL BREAKS: INTERVAL DRILL RATE GAS Show/ZOI FROM TO BEFORE DURING AFTER BEFORE DURING AFTER ACTIVITY, PREVIOUS 24 HOURS Nipple up BOP and test BOP PLANNED ACTIVITY Drill 9.875 hole Engineer: Steven Jenkins err S Kerr McGee Report# y p Oliktok Point Alaska Drilling Services Daily Operations Report WELL: Oliktok Point I-2 P61 RIG: Nabors-gas DATE: os-,Ian-o7 TIME: 2400 hrs DEPTH (MD): 25so DEPTH (TVD) : 2o2s MUD WEIGHT: ECD: CHLORIDES (mg/L): Ss,ooo PWD Surface FIT: Downhole LWD LOT: PORE PRESSURE: Background GAS: SURVEY DEPTH: Drilling HRS: INCL: Cum. HRS: AZIM: Metal Shavings: o TVD Cum. Shavings: o PREVIOUS 24 HOUR SUMMARY LITHOLOGY LCM: CHT TRIP GAS: CONN GAS: CONN GAS: CONN GAS: CONN GAS: CONN GAS: CONN GAS: BACKGRND GAS: MAX GAS: AVG ROP: GC Depth: DRILL BREAKS: SH: SLTST: SAND COAL CLYST CMT: UNITS @ MD TVD NA UNITS @ NA MD NA TVD NA UNITS @ NA MD NA TVD NA UNITS @ NA MD NA TVD NA UNITS @ NA MD NA TVD NA UNITS @ NA MD NA TVD NA UNITS @ NA MD NA TVD na UNITS na Circ NA na UNITS @ MD TVD fUhr (24 hr) C1= C2=0 C3 = I-4= N-4= I-5= N-5= INTERVAL DRILL RATE GAS Show/ZOI FROM TO BEFORE DURING AFTER BEFORE DURING AFTER ACTIVITY, PREVIOUS 24 HOURS Nipple up BOP and test BOP PLANNED ACTIVITY Drill 9.875 hole Engineer: Steven Jenkins S„ err Kerr McGee Report#0 r Y Oliktok Point Alaska t Drilling Services Daily Operations Report WELL: Oliktok Point I-2 PB1 RIG: Nabors-245 DATE: 10-,tan-07 TIME: 2aoo hrs DEPTH (MD): 35s7.s DEPTH (TVD) : 2515.3a MUD WEIGHT: s.a ECD: s.st CHLORIDES (mg/L): 55,000 PWD Surface FIT: Downhole LWD LOT: PORE PRESSURE: Background GAS: 2a SURVEY DEPTH: 3463.61 Drilling HRS: s.o INCL: s3.7s Cum. HRS: 37.0 ' AZIM: 3os.5a Metal Shavings: o TVD 22aa.ss Cum. Shavings: o PREVIOUS 24 HOUR SUMMARY LITHOLOGY 3500 Shale:Dark grey, ards to coal ip,carb,blky,pit, spintry ilg ip ,m hrd. 3670 Coal: LCM: SH: 7o°i SLTST: 3o i° SAND CHT COAL CLYST CMT: TRIP GAS: UNITS @ MD TVD CONN GAS: NA UNITS @ NA MD NA TVD CONN GAS: NA UNITS @ NA MD NA TVD CONN GAS: NA UNITS @ NA MD NA TVD CONN GAS: NA UNITS @ NA MD NA TVD CONN GAS: NA UNITS @ NA MD NA TVD CONK GAS: NA UNITS @ NA MD NA TVD BACKGRND GAS: na UNITS na Circ NA MAX GAS: na UNITS @ MD TVD AVG ROP: ft/hr (24 hr) GC Depth: C1= C2=0 C3 = I-4= N-4= 1-5= N-5= ~ DRILL BREAKS: INTERVAL DRILL RATE GAS Show/ZOI FROM TO BEFORE DURING AFTER BEFORE DURING AFTER ACTIVITY, PREVIOUS 24 HOURS PLANNED ACTIVITY Service rig,Slip/cut drill line Drll out float 15 new hole Drill 9.875 hole repair bleeder value drilling 9.875 new hole. t 1 Engineer: Steven Jenkins ~ Kerr McGee Report # Sperry Olikrok Point Alaska Drilling Services Daily Operations Report WELL: Oliktok Point I-2 PB1 RIG: Nabors-245 DATE: t 1-,Ian-07 TIME: 2400 hrs DEPTH (MD): 53ss.1 DEPTH (TVD) : 2515.34 MUD WEIGHT: s.s ECD: s.si CHLORIDES (mg/L): 55,000 PWD Surface FIT: Downhole LWD LOT: PORE PRESSURE: Background GAS: 17 SURVEY DEPTH: 53as.o3 Drilling HRS: 15.0 INCL: 67.85 Cum. HRS: 54.0 AZIM: 302.93 Metal Shavings: o TVD 3188 Cum. Shavings: o PREVIOUS 24 HOUR SUMMARY LITHOLOGY 5350 Siltstone:H gry,sme mgrey,amorph-pity,tr sst lamss ip, tr sh ip.mica ip,carb im bed specks from-mhd ip trace coal. LCM: SH: SLTST: ioo°i SAND CHT COAL CLYST CMT: TRIP GAS: UNITS @ MD TVD CONN GAS: NA UNITS @ NA MD NA TVD CONN GAS: NA UNITS @ NA MD NA TVD CONN GAS: NA UNITS @ NA MD NA TVD CONN GAS: NA UNITS @ NA MD NA TVD CONN GAS: NA UNITS @ NA MD NA TVD CONN GAS: NA UNITS @ NA MD NA TVD BACKGRND GAS: 17 UNITS na Circ NA MAX GAS: 60 UNITS @ 5363 MD 3194 TVD AVG ROP: 75 fUhr (24 hr) GC Depth: C1=1544 C2=0 C3 = I-4= N-4= I-5= N-5= ~ DRILL BREAKS INTERVAL DRILL RATE GAS Show/ZOI FROM TO BEFORE DURING AFTER BEFORE DURING AFTER ACTIVITY, PREVIOUS 24 HOURS PLANNED ACTIVITY Drilling 9.875 hole Drill 9.875 hole Engineer: Steven Jenkins S„err Kerr McGee Report # 0 M Y Oliktok Point Alaska Drilling Services Daily Operations Report WELL: Oliktok Point I-2 PB1 RIG: Nabors-245 DATE: 12-Jan-07 TIME: 2400 hrs DEPTH (MD): x715 DEPTH (TVD) : 2515.34 MUD WEIGHT: s.s ECD: s.s1 CHLORIDES (mg/L): 53,000 PWD Surface FIT: Downhole LWD LOT: PORE PRESSURE: Background GAS: ao SURVEY DEPTH: s71s Drilling HRS: 15.0 INCL: s5.s5 Cum. HRS: 71.0 AZIM: 3os.3s Metal Shavings: o TVD 3s1s Cum. Shavings: o PREVIOUS 24 HOUR SUMMARY LITHOLOGY 6715 Siltstone:H gry,sme mgrey,amorph-plty,tr sst lamss ip, tr sh ip.mica ip,carb im bed specks from-mhd ip trace coal. Look for show reports on line. LCM: SH: SLTST: loo°i SAND CHT COAL CLYST CMT: TRIP GAS: UNITS C~ MD TVD CONN GAS: NA UNITS Cc3 NA MD NA TVD CONN GAS: NA UNITS C~ NA MD NA TVD CONN GAS: NA UNITS C~ NA MD NA TVD CONN GAS: NA UNITS C~ NA MD NA TVD CONN GAS: NA UNITS Q NA MD NA TVD CONN GAS: NA UNITS C~ NA MD NA TVD BACKGRND GAS: 40 UNITS na Circ NA MAX GAS: 921 UNITS ~ 6474 MD 3600 TVD AVG ROP: 75 fUhr (24 hr) GC Depth: C1=1544 C2=0 C3 = I-4= N-4= I-5= N-5= DRILL BREAKS: INTERVAL DRILL RATE GAS Show/ZOI FROM TO BEFORE DURING AFTER BEFORE DURING AFTER 1 6046 6074 160 180 140 20 110 20 2 6172 6240 140 160 100 20 115 85 3 6404 6483 60 170 80 35 450 80 ACTIVITY, PREVIOUS 24 HOURS PLANNED ACTIVITY Drilling 9.875 TD this section of the well . POOH, lay down BHA and Nukes run caseing,set plugs Engineer: Steven Jenkins S err Kerr McGee Report # 10 p Y Oliktok Point Alaska Drilling Services Daily Operations Report WELL: Oliktok Point I-2 PBi RIG: Nabors-245 DATE: 13-Jan-07 TIME: 2400 hrs DEPTH (MD): s71s DEPTH (TVD) : 2s1s.3a MUD WEIGHT: s.s ECD: 9.61 CHLORIDES (mg/L): s3,ooo PWD Surface FIT: Downhole LWD LOT: PORE PRESSURE: Background GAS: ao SURVEY DEPTH: s71s Drilling HRS: is.o INCL: ss.ss Cum. HRS: 71.0 AZIM: 3os.3s Metal Shavings: o TVD 3619 Cum. Shavings: o PREVIOUS 24 HOUR SUMMARY LITHOLOGY LCM: SH: SLTST: SAND CHT COAL CLYST CMT: TRIP GAS: UNITS @ MD TVD CONN GAS: NA UNITS @ NA MD NA TVD CONN GAS: NA UNITS @ NA MD NA TVD CONN GAS: NA UNITS @ NA MD NA TVD CONN GAS: NA UNITS @ NA MD NA TVD CONN GAS: NA UNITS @ NA MD NA TVD CONN GAS: NA UNITS @ NA MD NA TVD BACKGRND GAS: UNITS na Circ NA MAX GAS: UNITS @ MD 3600 TVD AVG ROP: fUhr (24 hr) GC Depth: C1= C2=0 C3 = I-4= N-4= I-5= N-5= DRILL BREAKS INTERVAL DRILL RATE GAS Show/ZOI FROM TO BEFORE DURING AFTER BEFORE DURING AFTER 1 2 3 ACTIVITY, PREVIOUS 24 HOURS PLANNED ACTIVITY POOH Download tools laydown BHA ,Pump 1st cement set 2nd and 3 plug. BOP test. plug report time CBU Engineer: Steven Jenkins S err Kerr McGee Report # 1 i p Y Olikfok Point Alaska Drilling Services Daily Operations Report WELL: Oliktok Point I-2 PB1 RIG: Nabors-245 DATE: 14-.Ian-o~ TIME: 2400 hrs DEPTH (MD): s~15 DEPTH (TVD) : 2515.34 MUD WEIGHT: s.s ECD: s.si CHLORIDES (mg/L): 53,000 PWD Surface FIT: Downhole LWD LOT: PORE PRESSURE: Background GAS: SURVEY DEPTH: s~15 Drilling HRS: INCL: s5.s5 Cum. HRS: ~i.o AZIM: 3os.3s Metal Shavings: o TVD 3619 Cum. Shavings: o PREVIOUS 24 HOUR SUMMARY LITHOLOGY LCM: SH: SLTST: SAND CHT COAL CLYST CMT: TRIP GAS: UNITS @ MD TVD CONN GAS: NA UNITS @ NA MD NA TVD CONN GAS: NA UNITS @ NA MD NA TVD CONN GAS: NA UNITS @ NA MD NA TVD CONN GAS: NA UNITS @ NA MD NA TVD CONN GAS: NA UNITS @ NA MD NA TVD CONN GAS: NA UNITS @ NA MD NA TVD BACKGRND GAS: UNITS na Circ NA MAX GAS: UNITS @ MD 3600 TVD AVG ROP: ft/hr (24 hr) GC Depth: C1= C2=0 C3 = I-4= N-4= I-5= N-5= DRILL BREAKS: INTERVAL DRILL RATE GAS Show/ZOI FROM TO BEFORE DURING AFTER BEFORE DURING AFTER 1 2 3 ACTIVITY, PREVIOUS 24 HOURS Set the 3rd plug Tested Bop test atreport time . PLANNED ACTIVITY Engineer: Steven JenklnS err S Kerr McGee Report# 12 y p Oliktok Point Alaska Drilling Services Daily Operations Report WELL: Oliktok Point I-2 PB2 RIG: Nabors-245 DATE: 15-Jan-07 TIME: 2400 hrs DEPTH (MD): a2ss DEPTH (TVD) : 2sis.sa MUD WEIGHT: s.s ECD: s.sf CHLORIDES (mg/L): sa,ooo PWD Surface FIT: Downhole LWD LOT: PORE PRESSURE: Background GAS: SURVEY DEPTH: Drilling HRS: INCL: Cum. HRS: AZIM: Metal Shavings: o TVD Cum. Shavings: o PREVIOUS 24 HOUR SUMMARY LITHOLOGY LC M: SH: SLTST: SAN D CHT COAL CLYST CMT: TRIP GAS: UNITS @ MD TVD CONN GAS: NA UNITS @ NA MD NA TVD CONN GAS: NA UNITS @ NA MD NA TVD CONN GAS: NA UNITS @ NA MD NA TVD CONN GAS: NA UNITS @ NA MD NA TVD CONN GAS: NA UNITS @ NA MD NA TVD CONN GAS: NA UNITS @ NA MD NA TVD BACKGRND GAS: UNITS na Circ NA MAX GAS: UNITS @ MD TVD AVG ROP: fUhr (24 hr) GC Depth: C1= C2=0 C3 = I-4= N-4= I-5= N-5= DRILL BREAKS: INTERVAL DRILL RATE GAS Show/ZOI FROM TO BEFORE DURING AFTER BEFORE DURING AFTER 1 2 3 ACTIVITY, PREVIOUS 24 HOURS Working on top drive,Picked up BHA,Drill pipe, PLANNED ACTIVITY Drill ahead Engineer: Steven Jenkins err S Kerr McGee Report # 13 y p Oliktok Point Alaska Drilling Services Daily Operations Report WELL: Oliktok Point I-2 P62 RIG: Nabors-245 DATE: 16-Jan-07 TIME: 2400 hrs DEPTH (MD): 5753 DEPTH (TVD) : 3391 MUD WEIGHT: s.s ECD: 9.60 ECD clean 9.81 CHLORIDES (mg/L): 51,000 PWD Surface FIT: Downhole LWD LOT: PORE PRESSURE: Background GAS: SURVEY DEPTH: 5654.13 Drilling HRS: is.o INCL: 66.47 Cum. HRS: 35.0 AZIM: 3o5.2s Metal Shavings: o TVD 3349 Cum. Shavings: o PREVIOUS 24 HOUR SUMMARY LITHOLOGY 5550 Silstone : Lt-m gry, sme It gry/brn, occ grdg to of gr SS, sli calc ip , abnt cht and qtz frags ,occ Garb and spks,sft-mod frm. LCM: SH: SLTST: so°i SAND sTONe:2o°io CHT COAL CLYST CMT: TRIP GAS: UNITS @ MD TVD CONN GAS: NA UNITS @ NA MD NA TVD CONN GAS: NA UNITS @ NA MD NA TVD CONN GAS: NA UNITS @ NA MD NA TVD CONN GAS: NA UNITS @ NA MD NA TVD CONN GAS: NA UNITS @ NA MD NA TVD CONN GAS: NA UNITS @ NA MD NA TVD BACKGRND GAS: 21 UNITS na Circ NA MAX GAS: 91 UNITS @ 5719 MD 3375 TVD AVG ROP: 175 ft/hr (24 hr) GC Depth: C1-1750 C2=1750 C3=1750 I-4= N-4= I-5= N-5= r)RII / RRFdKS• INTERVAL DRILL RATE GAS Show/ZOI FROM TO BEFORE DURING AFTER BEFORE DURING AFTER 1 2 3 ACTIVITY, PREVIOUS 24 HOURS Side tracked at 4279 ,worked on top drive drilling ahead at report time. PLANNED ACTIVITY TD this section of the side track.run in with caseing. Engineer: Steven Jenkins S err Kerr McGee Report# 15 p Y Oliktok Point Alaska Drilling Services Daily Operations Report WELL: Oliktok Point I-2 PB2 RIG: Nabors-245 DATE: 18-Jan-07 TIME: 2400 hrs DEPTH (MD): 6711 DEPTH (TVD) : 3577.44 MUD WEIGHT: 9.8 ECD: 9.8 ECD clean 9.80 CHLORIDES (mg/L): 51,000 PWD Surface FIT: Downhole LWD LOT: PORE PRESSURE: Background GAS: 151 SURVEY DEPTH: sss7.85 Drilling HRS: 15.0 INCL: 8a.is Cum. HRS: 50.0 AZIM: 3oa.s8 Metal Shavings: o TVD 3577 Cum. Shavings: o PREVIOUS 24 HOUR SUMMARY LITHOLOGY 6700 Silstone : Lt gry ,wh,tr grn,blk,vf-gr,sb ang-sb rnd,slty w/wh-It gry slty,sheil frags,fri- mod frm sample,50% gid flur,w fst satrmg yrel ct flur. LCM: SH: SLTST: 7o i° SAND STONE: 30% CHT COAL CLYST CMT: TRIP GAS: UNITS @ MD TVD CONN GAS: NA UNITS @ NA MD NA TVD CONN GAS: NA UNITS @ NA MD NA TVD CONN GAS: NA UNITS @ NA MD NA TVD CONN GAS: NA UNITS @ NA MD NA TVD CONN GAS: NA UNITS @ NA MD NA TVD CONN GAS: NA UNITS @ NA MD NA TVD BACKGRND GAS: UNITS na Circ NA MAX GAS: UNITS @ 5719 MD 3375 TVD AVG ROP: fUhr (24 hr) GC Depth: C1: C2= C3= I-4= N-4= I-5= N-5= DRILL BREAKS INTERVAL DRILL RATE GAS Show/ZOI FROM TO BEFORE DURING AFTER BEFORE DURING AFTER 1 5900 5980 41 125 51 85 218 35 2 6070 6180 41 150 75 35 394 85 3 6610 6700 100 200 111 82 1675 642 ACTIVITY, PREVIOUS 24 HOURS PLANNED ACTIVITY Run in with casing. Came ,gyp to shoe work on the top drive.Went back down drilled 2 feet .TD hole Gam POOH LAYED BHA Running in with casing . r Engineer: Steven Jenkins Sperry Kerr McGee Report # 16 Oliktok Point Alaska Drilling Services Daily Operations Report WELL: Oliktok Point I-2 PB2 RIG: Nabors-gas DATE: is-,Ian-o7 TIME: 2400 hrs DEPTH (MD): s71 t DEPTH (TVD) : 3577.aa MUD WEIGHT: s.s ECD: s.s ECD clean 9.80 CHLORIDES (mg/L): 5~,00o PWD Surface FIT: Downhole LWD LOT: PORE PRESSURE: Background GAS: 151 SURVEY DEPTH: sss7.s5 Drilling HRS: 15.0 INCL: sa.is Cum. HRS: 50.0 AZIM: 3oa.ss Metal Shavings: o TVD 3577 Cum. Shavings: o PREVIOUS 24 HOUR SUMMARY LITHOLOGY 6700 Silstone : Lt gry ,wh,tr grn,blk,vf-gr,sb ang-sb rnd,slty w/wh-It gry slty,shell frags,fri- mod frm sample,50%gld flur,w fst satrmg yrel ct flur. LCM: SH: SLTST: 7o°i SAND STONE: 30% CHT COAL CLYST CMT: TRIP GAS: UNITS C~ MD TVD CONN GAS: NA UNITS Q NA MD NA TVD CONN GAS: NA UNITS Cc3 NA MD NA TVD CONN GAS: NA UNITS Cc3 NA MD NA TVD CONN GAS: NA UNITS Q NA MD NA TVD CONN GAS: NA UNITS C~ NA MD NA TVD CONN GAS: NA UNITS Cc3 NA MD NA TVD BACKGRND GAS: UNITS na Circ NA MAX GAS: UNITS C«~ MD 3375 TVD AVG ROP: ft/hr (2a hr) GC Depth: C1: C2= C3= I-4= N-4= I-5= N-5= r)Rlll RRFdKR~ INTERVAL DRILL RATE GAS Show/ZOI FROM TO BEFORE DURING AFTER BEFORE DURING AFTER 1 2 3 ACTIVITY, PREVIOUS 24 HOURS Came up to shoe work on the top drive.Went back down drilled 2 feet .Td hole Gam POOH LAYED BHA Running in with caseing . PLANNED ACTIVITY Run in with casing. Engineer: Steven Jenkins Kerr McGee Report # 17 Sperry Oliktok Point Alaska Drilling Services Daily Operations Report WELL: Oliktok Point I-2 P62 RIG: Nabors-245 '' ~ DATE: 19-Jan-07 TIME: 2400 hrs DEPTH (MD): 6711 DEPTH (TVD) : 3577.aa MUD WEIGHT: 9.8 ECD: 9.8 ECD clean 9.80 CHLORIDES (mg/L): PWD Surface FIT: Downhole LWD LOT: PORE PRESSURE: Background GAS: o SURVEY DEPTH: 6667.85 Drilling HRS: o.o INCL: 84.1s Cum. HRS: o.o AZIM: 3oa.s8 Metal Shavings: o TVD 3577 Cum. Shavings: o PREVIOUS 24 HOUR SUMMARY LITHOLOGY !~ L~ LCM: SH: SLTST: 7o°i SAND STONE: 30% CHT COAL CLYST CMT: TRIP GAS: UNITS @ MD TvD CONN GAS: NA UNITS @ NA MD NA TVD CONN GAS: NA UNITS @ NA MD NA TVD CONN GAS: NA UNITS @ NA MD NA TVD CONN GAS: NA UNITS @ NA MD NA TVD CONN GAS: NA UNITS @ NA MD NA TVD CONN GAS: NA UNITS @ NA MD NA TVD BACKGRND GAS: UNITS na Circ NA MAX GAS: UNITS @ MD 3375 TVD AVG ROP: fUhr (24 hr) GC Depth: nnu r nncnvc. Ci: C2= C3= I-4= N-4= I-5= N-5= r~nn..a. onr-~n.~. INTERVAL DRILL RATE GAS Show/ZOI FROM TO BEFORE DURING AFTER BEFORE DURING AFTER 1 2 3 ACTIVITY, PREVIOUS 24 HOURS PLANNED ACTIVITY Complete pit transfer to oil base mud. Lay down 5" drill Completed running in the casing. Cemented casing in pipe. Pick up 12000 ft. of drill pipe for lateral. place. Dumping and cleaning pits laying down 5"drill pipe Engineer: Chuck Stringer S„err Kerr McGee Report# 19 r Y Oliktok Point Alaska Drilling Services Daily Operations Report WELL: Oliktok Point I-2 PB2 RIG: Nabors-245 DATE: 22-,tan-07 TIME: 2400 hrs DEPTH (MD): s711 DEPTH (TVD) : 3577.44 MUD WEIGHT: s.3 ECD: CHLORIDES (mg/L): PWD Surface FIT: Downhole LWD LOT: PORE PRESSURE: Background GAS: o SURVEY DEPTH: sss7.s5 Drilling HRS: o.o INCL: sa.is Cum. HRS: o.o AZIM: 3oa.sa Metal Shavings: o TVD 3577 Cum. Shavings: o PREVIOUS 24 HOUR SUMMARY LITHOLOGY LC M: SH: SLTST: SAN D CHT COAL CLYST CMT: TRIP GAS: UNITS @ MD TVD CONN GAS: NA UNITS @ NA MD NA TVD CONN GAS: NA UNITS @ NA MD NA TVD CONN GAS: NA UNITS @ NA MD NA TVD CONN GAS: NA UNITS @ NA MD NA TVD CONN GAS: NA UNITS @ NA MD NA TVD CONN GAS: NA UNITS @ NA MD NA TVD BACKGRND GAS: UNITS na Circ NA MAX GAS: UNITS @ MD 3375 TVD AVG ROP: ft/hr (24 hr) GC Depth: C1: C2= C3= I-4= N-4= I-5= N-5= r)Rlll RRFdKR• INTERVAL DRILL RATE GAS Show/ZOI FROM TO BEFORE DURING AFTER BEFORE DURING AFTER 1 2 3 ACTIVITY, PREVIOUS 24 HOURS First 300 barrel load of oil base mud delivered. Picking up singles of drill pipe to build stands. PLANNED ACTIVITY Complete oil base mud delivery Pick up 12000 ft. of drill pipe for lateral. Complete BOP test Pick up BHA, trip into borehole, begin drilling Engineer: Chuck Stringer Sperry Kerr McGee Report # 20 Oliktok Point Alaska Drilling Services Daily Operations Report WELL: DATE: DEPTH (MD): MUD WEIGHT: CHLORIDES (mg/L): Surface FIT: PORE PRESSURE: SURVEY DEPTH: INCL: A21M: TV D Oliktok Point I-2 RIG: Nabors-245 23-Jan-07 TIME: 2400 hrs 6711 DEPTH (TVD) : 3577.44 s.2 ECD: s.2s PWD Downhole LWD LOT: Background GAS: o 6667.85 Drilling HRS: o.o aa.is Cum. HRS: o.o 304.68 Metal Shavings: o 3577 Cum. Shavings: o PREVIOUS 24 HOUR SUMMARY LITHOLOGY 6711 - Interbedded light grey to light brown siltstone and sandsstone. Sandstone: light grey to light brown, very fine grainedsub angular to sub rounded, silty with occasioinal argaceous matrix, some shell fragmehts, weakly indurated, 60 % light yellow flourescence. .., »„u~»„ ,.,...~..w.~......, LCM: SH: SLTST: SAN D CHT COAL CLYST CMT: TRIP GAS: UNITS @ MD TVD CONN GAS: NA UNITS @ NA MD NA TVD CONN GAS: NA UNITS @ NA MD NA TVD CONN GAS: NA UNITS @ NA MD NA TVD CONN GAS: NA UNITS @ NA MD NA TVD CONN GAS: NA UNITS @ NA MD NA TVD CONN GAS: NA UNITS @ NA MD NA TVD BACKGRND GAS: UNITS na Circ NA MAX GAS: UNITS @ MD 3375 TVD AVG ROP: fUhr (24 hr) GC Depth: C1: C2= C3= I-4= N-4= I-5= N-5= nRU ~ RRFdIIC• '~ ~ INTERVAL DRILL RATE GAS Show/ZOI FROM TO BEFORE DURING AFTER BEFORE DURING AFTER 1 2 3 ACTIVITY, PREVIOUS 24 HOURS PLANNED ACTIVITY Finish pick up 12000 ft. of drill pipe for lateral. Finish BHA pickup, trip into borehole, begin drilling Complete BOP test Pick up BHA, Engineer: Chuck Stringer err S Kerr McGee Report# 21 y p Oliktok Point Alaska Drilling Services Daily Operations Report WELL: Oliktok Point I-2 RIG: Nabors-245 DATE: 23-Jan-07 TIME: 2400 hrs DEPTH (MD): ssso DEPTH (TVD) : 3581 MUD WEIGHT: s.2 ECD: io.7o CHLORIDES (mg/L): PWD Surface FIT: Downhole LWD LOT: PORE PRESSURE: 31so.o Background GAS: ioo SURVEY DEPTH: sss7.s5 Drilling HRS: 5.0 INCL: sa.is Cum. HRS: 5.0 ' AZIM: 3oa.sa Metal Shavings: o TVD 3577 Cum. Shavings: o PREVIOUS 24 HOUR SUMMARY LITHOLOGY 6711 - 7000 Interbedded light grey to light brown siltstone and sandsstone. Sandstone: light grey to light brown, very fine grainedsub angular to sub rounded, silty with occasioinal argaceous matrix, some shell fragments, weakly indurated, 60% light yellow flourescence. LCM: SH: io% SLTST: 50% SAND ao% CHT COAL CLYST CMT: TRIP GAS: NA UNITS @ MD TVD CONN GAS: NA UNITS @ NA MD NA TVD CONN GAS: NA UNITS C~3 NA MD NA TVD CONN GAS: NA UNITS C~ NA MD NA TVD CONN GAS: NA UNITS Q NA MD NA TVD CONN GAS: NA UNITS Cc3 NA MD NA TVD CONN GAS: NA UNITS C~ NA MD NA TVD BACKGRND GAS: 100 UNITS na Circ NA MAX GAS: 460 UNITS @ 6930 MD 3585 TVD AVG ROP: fUhr (24 hr) GC Depth: C1: C2= C3= I-4= N-4= I-5= N-5= DRILL BREAKS: INTERVAL DRILL RATE GAS Show/ZOI FROM TO BEFORE DURING AFTER BEFORE DURING AFTER 2 3 s t ACTIVITV, PREVIOUS 24 HOURS Completed trip into the hole, tested BHA, began drilling PLANNED ACTIVITY Drill ahead Engineer: Chuck Stringer err S Kerr McGee Report# 22 y p Oliktok Point Alaska ' Drilling Services Daily Operations Report WELL: Oliktok Point I-2 RIG: Nabors-2a5 i ~ DATE: 2a-Jan-07 TIME: 2aoo hrs i DEPTH (MD): ssss DEPTH (TVD) : 32a3 MUD WEIGHT: s.a ECD: 10.33 WPS (ppm): 2a5,sss PWD Surface FIT: Downhole LWD LOT: PORE PRESSURE: 31so.o Background GAS: 300 SURVEY DEPTH: s5sa Drilling HRS: 1s.s INCL: so.17 Cum. HRS: 21.5 AZIM: 323.so Metal Shavings: TVD 357s.aa Cum. Shavings: PREVIOUS 24 HOUR SUMMARY LITHOLOGY 7000-8665 Light grey to light brown siltstone and light to medium brown sandstone. Sandstone: light grey to medium brown, very fine grained, sub angular to sub rounded, occasionally silty with occasioinal argaceous matrix, oil stained, weakly indurated, light yellow flourescens~ ' cut up to 60% light yellow flourescence. LCM: Concret.: 15°ro SLTST: a5% SAND ao% CHT COAL CLYST CMT: TRIP GAS: NA UNITS @ MD TVD CONN GAS: NA UNITS @ NA MD NA TVD CONN GAS: NA UNITS @ NA MD NA TVD CONN GAS: NA UNITS @ NA MD NA TVD CONN GAS: NA UNITS @ NA MD NA TVD CONN GAS: NA UNITS @ NA MD NA TVD CONN GAS: NA UNITS @ NA MD NA TVD BACKGRND GAS: 30o UNITS na Circ NA MAX GAS: 1050 UNITS @ 7735 MD 3586 TVD AVG ROP: 167 fUhr (24 hr) GC Depth: C1:86626 C2=499 C3=314 I-4=141 N-4=159 I-5=0 N-5=77 DRILL BREAKS: INTERVAL DRILL RATE GAS Show/ZOI FROM TO BEFORE DURING AFTER BEFORE DURING AFTER 1 2 3 ACTIVITY, PREVIOUS 24 HOURS PLANNED ACTIVITY Continued to drilled the lateral Drill ahead I j ~ Engineer: Chuck Stringer Sperry Kerr McGee Report # 23 ' Oliktok Point Alaska Drilling Services Daily Operations Report WELL: Oliktok Point I-2 RIG: Nabors-245 ' DATE: 25-Jan-07 TIME: 2400 hrs DEPTH (MD): sits DEPTH (TVD) : 35as MUD WEIGHT: s.2 ECD: ii.oo WPS (ppm): 303,789 PWD Surface FIT: Downhole LWD LOT: PORE PRESSURE: 31s7.o Background GAS: ioo SURVEY DEPTH: Boas Drilling HRS: s.a INCL: ss.ss Cum. HRS: 3i.3 AZIM: 32a.as Metal Shavings: TVD 35x2 Cum. Shavings: PREVIOUS 24 HOUR SUMMARY LITHOLOGY 8665 -91 18 Light grey to light brown siltstone and light to medium brown sandstone. Sandstone: light grey to medium brown, very fine grained, sub angular to sub rounded, ' occasionally silty with occasioinal argaceous matrix, oil stained, weakly indurated, light yellow flourescens~ cut up to 60% light yellow flourescence. LCM: Concret.: SLTST: so% SAND 20°i CHT TRIP GAS: CONN GAS: CONN GAS: CONN GAS: CONN GAS: CONN GAS: CONN GAS: BACKGRND GAS: MAX GAS: AVG ROP: GC Depth: DRILL BREAKS: COAL CLYST CMT: NA UNITS @ MD TVD NA UNITS @ NA MD NA TVD NA UNITS @ NA MD NA TVD NA UNITS @ NA MD NA TVD NA UNITS @ NA MD NA TVD NA UNITS @ NA MD NA TVD NA UNITS @ NA MD NA TVD 100 UNITS na Circ NA 740 UNITS @ 8873 MD 3589 TVD 149 fUhr (24 hr) C1:35236 C2=212 C3=142 I-4=74 N-4=93 I-5=0 N-5=32 INTERVAL DRILL RATE GAS Show/ZOI FROM TO BEFORE DURING AFTER BEFORE DURING AFTER 1 2 3 ACTIVITY, PREVIOUS 24 HOURS Drilled to a depth of 9747 feet. Decision was made to side track from 9177. Currently attempting to get depth with bit at 9118. r PLANNED ACTIVITY Drill ahead Engineer: Chuck Stringer Sperry ' Drilling Services Kerr McGee Oliktok Point Alaska Daily Operations Report Report # 24 WELL: Oliktok Point I-2 RIG: Nabors-245 DATE: 26-Jan-07 TIME: 2400 hrs DEPTH (MD): 10415 DEPTH (TVD) : 3sos.2s MUD WEIGHT: s.3 ECD: 1o.ao WPS (ppm): 255,127 PWD Surface FIT: Downhole LWD LOT: PORE PRESSURE: 3275.0 Background GAS: 100 SURVEY DEPTH: 10,394.96 Drilling HRS: 4.6 INCL: so.oa Cum. HRS: is.5 AZIM: 32o.sa Metal Shavings: TVD 3609.51 Cum. Shavings: PREVIOUS 24 HOUR SUMMARY LITHOLOGY 9118 - 1 04 15 Light grey to dark brown sandstone with occasional thin bedded or laminated siltstone, and numerous concretion deposits. Sandstone: light grey to medium brown, very fine grained, sub angular to sub rounded, occasionally silty with occasioinal argaceous matrix, well sorted, predominately quartz with .........~.,.,.,......~... dark.9,r~X.t4~L4~ln.glri4ft 6nf~.XGGI~flr~ins,„weaKlX.to n4Cf 4emented~ o~ stained ..~-,.... ,,e m. _~ ,,,.. k.... ,. ~,.~, . . , _...::, , moderate to light yellow flourescense, very strong light yellow streaming, free oil in samples. LCM: Concret.: SLTST: solo SAND 2oi CHT COAL CLYST CMT: TRIP GAS: NA UNITS C~ MD TVD CONN GAS: NA UNITS @ NA MD NA TVD CONN GAS: NA UNITS @ NA MD NA TVD CONN GAS: NA UNITS C~ NA MD NA TVD CONN GAS: NA UNITS Q NA MD NA TVD CONN GAS: NA UNITS Q NA MD NA TVD CONN GAS: NA UNITS Cc3 NA MD NA TVD BACKGRND GAS: 100 UNITS na Circ NA MAX GAS: s1o UNITS Q 10,082 MD 3608 TVD AVG ROP: 54 fUhr (24 hr) GC Depth: 10,082 C1:79394 C2=522 C3=319 I-4=156 N-4=173 t-5=88 N5=47 r)Rlll RREdKS~ INTERVAL DRILL RATE GAS Show/ZOI FROM TO BEFORE DURING AFTER BEFORE DURING AFTER 1 r 2 3 ACTIVITY, PREVIOUS 24 HOURS PLANNED ACTIVITY Successfully started side track at 9125 ft MD Drill ahead Drilling ahead r Engineer: Chuck Stringer S„err Kerr McGee Report # 25 r Y Oliktok Point Alaska ', ~ Drilling Services Daily Operations Report WELL: Oliktok Point I-2 RIG: Nabors-245 DATE: 27-,Ian-o7 TIME: 2400 hrs DEPTH (MD): 1221s DEPTH (TVD) : 35ss.oa MUD WEIGHT: s.2 ECD: 1o.5s WPS (ppm): 2s1,32o PWD Surface FIT: Downhole LWD LOT: PORE PRESSURE: 3222.0 Background GAS: 500 SURVEY DEPTH: 12,o7s.32 Drilling HRS: ia.5 INCL: as.s2 Cum. HRS: 33.7 AZIM: 321.45 Metal Shavings: TVD 3599.55 Cum. Shavings: PREVIOUS 24 HOUR SUMMARY LITHOLOGY 9118 - 104 15 Light grey to dark brown sandstone with occasional thin bedded or laminated siltstone, some concretion deposits. Sandstone: light grey to medium brown, very fine to medium grained, sub angular to sub rounded, occasionally silty with occasioinal argillaceous matrix, well sorted, predominately quartz with . - ~,,~I~~,~rgx~g,l~rgyun c~hert and rq~r,~grains, weakly 1:~~nQfl,cemented,,oil stained moderate to light yellow flourescense, very strong light yellow streaming, free oil in samples. LCM: Concret.: 20°i SLTST: 5°i SAND 75`% CHT COAL CLYST CMT: TRIP GAS: NA UNITS @ MD TVD CONN GAS: NA UNITS @ NA MD NA TVD CONN GAS: NA UNITS @ NA MD NA TVD CONN GAS: NA UNITS @ NA MD NA TVD CONN GAS: NA UNITS @ NA MD NA TVD CONN GAS: NA UNITS @ NA MD NA TVD CONN GAS: NA UNITS @ NA MD NA TVD BACKGRND GAS: 500 UNITS na Circ NA MAX GAS: aoo UNITS @ 11975 MD 3599.64 TVD AVG ROP: 75 fUhr (24 hr) GC Depth: 10,0 82 C1:84456 C2=563 C3=302 I-4=173 N-4=180 I-5=97 N5=49 DRILL BREAKS INTERVAL DRILL RATE GAS Show/ZOI FROM TO BEFORE DURING AFTER BEFORE DURING AFTER 1 2 3 ACTIVITY, PREVIOUS 24 HOURS PLANNED ACTIVITY Successfully started side track at 9125 ft MD Drill ahead Drilling ahead r Engineer: Chuck Stringer S err Kerr McGee Report # 26 p Y Oliktok Point Alaska Drilling Services Daily OperationsRepon' WELL: Oliktok Point I-2 RIG: Nabors-245 DATE: 28-Jan-07 TIME: 2400 hrs DEPTH (MD): 12711 DEPTH (TVD) : 35ss.a2 MUD WEIGHT: s.2 ECD: 10.98 WPS (ppm): 2s1,32o PWD Surface FIT: Downhole LWD LOT: PORE PRESSURE: 32ao.o Background GAS: 200 SURVEY DEPTH: 12,711.00 Drilling HRS: 3.s INCL: ss.io Cum. HRS: 37.s AZIM: 32o.s5 Metal Shavings: TVD 35ss.a2 Cum. Shavings: PREVIOUS 24 HOUR SUMMARY LITHOLOGY 12220 - 127 11 Light grey to dark brown sandstone with thin bedded or laminated siltstone, some concretion deposits. Sandstone: light grey to medium brown, very fine to medium grained, sub angular to sub rounded, occasionally silty with occasioinal argillaceous matrix, well sorted, predominately quartz with dark grey to brown chert and rock grains, weakly to non cemented, oil stained moderate to light yellow flourescense, very strong light yellow streaming, free oil in samples. LCM: Concret.: 15 i CHT COAL TRIP GAS: NA UNITS CONN GAS: NA UNITS CONN GAS: NA UNITS CONN GAS: NA UNITS CONN GAS: NA UNITS CONN GAS: NA UNITS CONN GAS: NA UNITS BACKGRND GAS: 200 UNITS MAX GAS: 770 UNITS AVG ROP: i.ao(2o2.s) ft/nr GC Depth: 10,082 C1:48383 C2=301 r)RILI. 6REdKS~ SLTST: 20 i° .SAND s5°i° CLYST CMT: @ MD @ NA MD NA @ NA MD NA @ NA MD NA @ NA MD NA @ NA MD NA @ NA MD NA na Circ NA @ 12642 MD 3599.64 (24 hr) C3=170 I-4=116 N-4=129 I-5=81 TVD TVD TVD TVD TVD TVD TVD TVD N5=43 INTERVAL DRILL RATE GAS Show/ZOI FROM TO BEFORE DURING AFTER BEFORE DURING AFTER 1 i 2 3 ACTIVITY, PREVIOUS 24 HOURS PLANNED ACTIVITY ' Total Depth Reached, conditioned hole, tripped out to the Trip out of the hole, lay down tools, prepare to shoe. Tripped back to bottom, conditioned hole. run liner. Engineer: Chuck Stringer S err Kerr McGee Report# 27 p Y Oliktok Poinf Alaska Drilling Services Daily Operations Report WELL: Oliktok Point I-2 RIG: Nabors-245 DATE: 29-Jan-07 TIME: 2400 hrs DEPTH (MD): 12711 DEPTH (TVD) : 35ss.a2 MUD WEIGHT: s.3 ECD: 1o.ss WPS (ppm): 2ss,5s3 PWD Surface FIT: Downhole LWD LOT: PORE PRESSURE: 32ao.o Background GAS: 10 SURVEY DEPTH: 12,711.00 Drilling HRS: INCL: ss.1o Cum. HRS: AZIM: 32o.s5 Metal Shavings: TVD 35ss.a2 Cum. Shavings: PREVIOUS 24 HOUR SUMMARY LITHOLOGY LCM: Concret.: 15°i SLTST: 20°i SAND s5°i CHT COAL CLYST CMT: TRIP GAS: NA UNITS @ MD TVD CONN GAS: NA UNITS @ NA MD NA TVD CONN GAS: NA UNITS @ NA MD NA TVD CONN GAS: NA UNITS @ NA MD NA TVD CONN GAS: NA UNITS @ NA MD NA TVD CONN GAS: NA UNITS @ NA MD NA TVD CONN GAS: NA UNITS @ NA MD NA TVD BACKGRND GAS: 1o UNITS na Circ NA MAX GAS: UNITS @ MD TVD AVG ROP: fUhr (24 hr) GC Depth: 10,082 C1:48383 C2=301 C3=170 I-4=116 N-4=129 I-5=81 N5=43 DRILL BREAKS' INTERVAL DRILL RATE GAS Show/ZOI FROM TO BEFORE DURING AFTER BEFORE DURING AFTER 1 2 3 ACTIVITY, PREVIOUS 24 HOURS Completed tripping out of the hole. Layed down MW D tools. Prepared to run in with the 3" ID slotted liner. Began to run in liner at midnight 3420 feet in the hole.. PLANNED ACTIVITY Continue to run in the liner. Engineer: Chuck Stringer ~r wr ~^s ~ ~ ssw ss ~ ~ sse ~^s ~~ s~ rt s: ~r rs sse ~ HALLIBURTON Sperry Drilling Services BIT RECORD WELL NAME: Oliktok Pt I-2 PI3 I & I-2 LOCATION: Oliktok Pt OPERATOR: Kerr McGee Corporation AREA: North Slope ~~~ CONTRACTOR: Nabors 245E STATE: Alaska Kerr/1/rGee BHA # Bit # Bit Type Bit Size Depth IN Depth OUT Footage Bit Hours TFA AVG ROP WOB RPM PUMP Press PUMP GPM Bit Grade Remarks 1 1 Hughes MX-1 13.50 114 2580 2466 29.20 0.072 84.5 20-25 50-80 1700 482 1-1-WT-AE-I-E-E-TD Set casing 10 3/4" casing 2 2 Hughes MXL-1V 9.88 2580 6715 4135 45.10 0.896 91.7 a-IZ 80 2750 600 7-7-BT-A-E-3-WT-TD TD first hole 3 3 Hughes EP5848 9.88 4280 6711 2431 31.00 0.499 78.4 7-15 80 2600 550 5-5-CT-A-E-4_ER-TD Sidetrack, Set 7 518" casing 4 4 SDBS FMF3641Z 6.75 6711 9747 3036 32.00 1.015 94.9 a 120 3430 306 Pull back to ST Horizontal drilled off course 5 Orr SDBS FMF3641Z 6.75 9125 12711 3586 37.40 1.015 95.9 s 120 3830 310 3-1-CT-I-E-1- -TD Open hole sidetrack & continued horizontal S pe rry-S U n Drilling Services Mud Record Company: Kerr McGee Corporation Well Oliktok Point I-2 Rig Nabors 245 Mud Co Baroid Lease Area North Slope -Alaska Job No: AK-AM-0004794321 Spud Date 4 January 2007 TD Date: 29 January 2007 .~ Casing Record 16" 80 ft MD 10 3/4" 2553 ft MD 7 5/8" 6696 ft MD Date De th Wt Vis PV YP Gels Filt Fann Rdgs Cake Solids NAPiHZ Sd Msr H ALK ALK-fill Chlo Hard LGS Remarks ft - MD ppg sec/gt cP Ibs/100ft2 Ib/100ft ml/30mi 600/300/200/100/6/3 API corr% % % ppb eq Pm Pf/Mf mg/I mg/I %b/vol 3-Jan 80 9.00 80 16 38 15/19/21 7 70/54/46/37/15/14 1 0.8 -/ss.o 0.5 5.0 8.5 0.0./0.60 50k 120 0.6 Drill 13.5" 4-Jan 300 9.30 57 14 28 9/14/17 6.8 56/42/35/26/11/8 1 3.2 -/s2.7 1 5.0 9.1 0.35 0.06/1.06 50k 120 3.1 Drill 13.5" 5-Jan 1816 10.10 63 24 29 10/25/29 7 77/53/42/29/11/8 2 8.1 -/sa.o 3 8.0 8.8 0.07!1.07 50k 100 6.7 Drill 13.5" 6-Jan 2580 9.80 49 16 18 7/26/30 na 50/34/27/18/6/5 1 5.6 -/as.s 3 8.0 8.9 0.07/0.79 60K 100 4.7 TD 13.5" 7-Jan 2580 9.90 50 18 22 8/29/33 8.0 58/40/32/23/7/5 2 6.5 -/ss.o 2 8.0 10.1 0.73 0.16.1.16 57K 200 5.5 Run 10 .75" csg 8-Jan 2580 9.50 43 14 13 5/14/21 5 a1/z7/zz/1s/s/a 2 4.3 -/s1.o 1 7.0 9.1 0.44 0.0./0.69 58k 140 4.4 Nipple up 9-Jan 2580 9.40 44 11 16 6/15/20 5.8 38/27/22/16/6/5 1 3.6 -/s2.o 0.25 5.0 8.5 0.05./0.50 54k 80 3.5 TIH w/ 9.875" 10-Jan 3348 9.40 43 12 17 5/14/19 6.4 41/29/23/16/5/4 1 3.5 -/s2.o 0.50 5.0 10.3 0.35 0.20/0.65 55K 120 3.4 Drill 9.875" 11-Jan 5153 9.60 48 20 20 6/15/20 5.6 60/40/30/20/6/4 1 4.9 -/s1.o 0.75 9.0 8.7 0.15 0.05/0.50 51K 120 4.4 Drilling 12-Jan 6679 9.85 46 17 16 5/23/25 5.8 50/33/26/17/4/3 1 6.6 o.vss.o 0.50 11.5 8.6 0.15 0.05/0.50 53K 120 6.0 TD 9.875" PB 1 13-Jan 6715 9.75 43 13 13 3/19/26 6.2 39/26/20/13 1 5.8 -/so.o 0.05 13.0 8.4 0.10 0.02/0.60 53K 120 5.1 6715', Tripping 14-Jan 6715 9.80 48 17 13 5126/29 12.0 47!30/23/15/3/2 Z 6.O -/89.5 0.15 12.5 11.2 0.22/1.20 56K 160 5.5 Tripping 15-Jan 6715 9.50 43 13 10 4/15/24 12.5 36123/17/10/3/2 2 4.3 -/s1.5 0.05 12.0 11.2 0.22/1.20 52K 160 4.0 Test BOPE 16-Jan 5411 9.60 49 16 16 4/19/23 6.8 48/32124/16/4/3 1 5.4 o.5/so.o 0.6 11.0 11.0 4.40 0.18/1.20 51 K 100 5.4 Begin Sidetrack 17-Jan 6709 9.80 51 21 20 4/22/29 5.2 62/41/32/20/5/4 1 7.0 0.5/88.5 0.5 13.5 10.0 2.0 0.15/0.65 51K 120 7.0 Drill 9.875" hole 18-Jan 6711 9.80 60 26 19 4/18/24 5.2 71/45/35/22 1 7.0 0.5/88.5 0.5 12.5 9.5 1.6 0.12/0.70 51 K 120 7.0 TD 9.875" hole 19-Jan 6711 9.80 56 27 18 5/19/31 na 72/45/36/22/5/4 1 6.6 o.5/ss.o 1.20 6.1 Chg out mud s s 20-Jan pits empt 21-Jan 6711 9.25 79 34 12 5/7/8 80/46/33/19/3/2 Z 10.1 70/18 0 5.0 281K 9.7 Enviromul Mud 22-Jan 6711 9.25 77 33 11 5/7/8 77/aa/31/1s/3n 2 8.1 71/19 0 5.0 270K 5.6 Test BOP, RIH 23-Jan 6903 9.20 81 24 9 5/8/9 57/33/24/15/5/4 1 8.1 71/19 0 5.0 270K 6.0 Test Form., Drill 24-Jan 8286 9.50 66 30 12 6/10/13 72/42/31/19/5/4 1 9.3 71/18 .25 2.7 258K 5.8 Drillin ahead 25-Jan 9123 9.20 65 23 8 5/7/10 54/31/23114/413 1 7.8 72/18 .25 2.5 303K 5.5 Drilling ahead 26-Jan 10160 9.30 65 27 10 6/10/13 64/37/27/17/514 1 9.6 73/16 .25 2 255K 7.2 Drilling ahead 27-Jan 11846 9.20 60 23 11 6/10/14 57/34/26/17/5/4/ 1 10.5 74/14 .25 2.8 281 K 9.8 Drilling ahead 28-Jan 12711 9.25 65 25 11 6/8/9 61/36/27/17/5/4 1 10.6 74/14 .25 2.7 266K 9.5 Trip to shoe 29-Jan 12711 9.25 70 23 13 6/8 59/36/27/18/5/4 1 10.6 7a/1a 2.7 266K 9.5 Run slotted liner sperry-sun Well Name: Oliktok I-2 P82 Depth (MD) 6610 to 6700 ft Location: Oliktok Point, North Slope Alaska (TVD) 3571 to 3576 ft DRILLING SERVICES Operator: Kerr-McGee Oil & Gas Corporation Zone Of Interest Report No. 1 Zone Of Interest Report Prepared By: Tom Manfield & Steve Jenkins Show Report No. 3 Report Delivered To: Date/Time: 01/17/2007 15:46pm Hole Diameter: 9 7/8" Max ROP @ 6700 ft Max Gas @ 6700 ft Max CI @ 6700 ft Bit Type: ~x Mill Tooth Diamond Insert PDC Other Before During After Avg. ROP MW MW Avg. Avg. Avg. X ft/hr In Out WOB RPM GPM min/ft 9.8 9.8 10 80 535 100 9.8 9.8 10 80 535 200 9.8 9.8 10 80 535 111 Avg. Gas X Units Avg. Max % Max CI- Max ROP 85 Gas na CI- 256 1675 124 na na 644 na Formation Data (GAS-IN-AIR) Avg. PPM (1000s) C1 C2 C3 C4 C5 1.5 0.01 0.00 0.00 0.00 13.0 0.11 0.01 0.01 0.01 4.2 0.00 0.00 0.00 0.00 PPM at Max Gas C1 C2 C3 C4 C5 14.2 0.12 0.01 0.01 0.00 At Max Gas, the visual sample percentages were: % sandstone, 30 % siltstone 70 % _% The reservoir rock was a v It gry -colored sand The grain size was of-f gr and the grain shape was ang-rnd Approximate visual porosity was na % and the visual permeability was poor Grain sorting was well sorted and the rock cement was siltstone The porosity type was intergranular and the secondary components in the rock fragments were: rock grains The rock hardness was poorly indurated and the sample contamination was drilling mud Preliminary Gas-In-Air Show Data Gas oll ac Gas X units (PPM's in 1000's) Fluor? Fluor? 8X units De th p B % C1 C2 C3 C4 C5 Y/N Y/N p De th 6610 72 0.6 0.500 0.005 0.004 # 0.004 Y Y 6680 1453 6620 504 6.0 0 0.550 0.003 # 0.002 0.001 Y Y 6690 1444 6630 1303 62.2 0.880 0.007 # 0.010 0.006 Y Y 7000 642 _ 6643 803 70.0 0.900 0.007 0.009 0.006 Y Y 6653 1337 100.0 0.130 0.015 0.013 0.008 Y Y _ _ 6660 1616 120.0 0.150 0.018 0.015 0.010 Y Y _ 6670 1675 121.0 0.150 0.019 0.016 0.010 Y Y Liquid Hydrocarbon Data oa at (PPM's in 1000's) FIuoR Fluor? C1 C2 C3 C4 C5 YIN YiN 111.0 0.140 0.013 0.010 0.009 Y Y 109.0 0.140 0.013 0.010 0.009 Y Y 6.5 6.000 0.003 0.001 0.001 Y Y The liquid hydrocarbon was first detected at # 6610 feet and continued through # 6700 feet. The liquid phase of the mud was. KCL Ploy . The liquid hydrocarbon occurred in the form of cut and was present in the cuttings / carb mtl When the cuttings were examined and studied in the UV box, the liquid hydrocarbons covered a 50 % of the surface of the sample. The oil was clear in color, exhibited a dull yellow gold fluorescence and had an approximate API gravity of # 50 ;odor was na and staining na present. Cuttings exhibited a trace to poor cut that was clear in color with a white fluorescence. Logger's Opinion of the Show Interval Free condensate or light oil from carbonaceous material *100% Gas-In-Air= 10000 Units sperry-Sun Well Name: Oliktok I-2 PB2 Location: Oliktok Point, North Slope Alaska DRILLING SERVICES Operator: Kerr-McGee Oil & Gas Corporation Zone Of Intel'@St Report Prepared By: Tom Manfield & Steve Jenkins Report Delivered To: Hole Diameter: 9 7/8" Bit Type: ~x Mill Tooth PDC Before Durinc Afte Diamond Insert Other Avg. ROP MW MW Avg. Avg. Avg. ~ ft/hr In Out W06 RPM GPM min/ft 9,6 9.7 10 80 535 41 9.6 9.7 10 80 543 150 9.6 9.7 10 80 535 75 Depth (MD) 6070 to 6180 ft (TVD) 3491 to 3520 ft Zone Of Interest Report No. 1 Show Report No. 2 Date/Time: 01/17/2007 5:48am Max ROP @ 6179 ft Max Gas @ 6179 ft Max CI @ 6179 ft Avg. Gas X Units Avg. Max % Max CI- Max ROP 35 Gas na CI- 197 394 631 na na 85 na Formation Data (GAS-IN-AIR) Avg. PPM (1000s) C1 C2 C3 C4 C5 PPM at Max Gas 1.5 0.01 0.00 0.00 0.00 C1 C2 C3 C4 C5 14.0 0.11 0.01 0.01 0.01 14.0 0.12 0.01 0.01 0.00 4.2 0.00 0.00 0.00 0.00 At Max Gas, the visual sample percentages were: % sandstone , 25 % siltstone 75 % _ The reservoir rock was a It tom gry -colored sand The grain size was of gr ss and the grain shape was ang-rnd Approximate visual porosity was na % and the visual permeability was. poor Grain sorting was well sorted and the rock cement was siltstone The porosity type was intergranular and the secondary components in the rock fragments were: rock grains The rock hardness was poorly indurated and the sample contamination was drilling mud Preliminary Gas-In-Air Show Data Gas on cut Gas oil cut X units (PPM's in 1000's) Fluor? Fluor? BX units (PP M's in 1000's) Fluor? Fluor? De th p ~ % C1 C2 C3 C4 C5 Y/N Y/N De th p % C1 C2 C3 C4 C5 YIN Y/N 6070 66 15.2 0.050 0.009 0.014 # 0.002 Y Y 6140 351 0.4 0.030 0.008 0.003 0.000 Y Y 6080 141 13.2 0 0.047 0.010 # 0.002 0.001 Y Y 6150 249 0.2 0.020 0.005 0.006 0.000 Y Y 6090 160 15.2 0.014 0.003 # 0.004 0.000 Y Y 6160 79 0.7 0.007 0.002 0.001 0.000 Y Y 6100 163 15.3 0.014 0.003 0.003 0.000 Y Y 6170 43 0.3 0.003 0.001 0.000 0.000 Y Y 6110 156 15.0 0.015 0.003 0.003 0.001 Y Y 6180 21 0.1 0.001 0.001 0.000 0.000 Y Y 6120 116 10.0 0.010 0.002 0.003 0.001 Y Y 6130 205 22.0 0.020 0.003 0.004 0.001 Y Y Liquid Hydrocarbon Data The liquid hydrocarbon was first detected at 6070 feet and continued through 6170 feet. The liquid phase of the mud was KCL Ploy . The liquid hydrocarbon occurred in the form of cut and was present in the cuttings ! carb mtl When the cuttings were examined and studied in the UV box, the liquid hydrocarbons covered a 50 % of the surface of the sample. The oil was clear in color, exhibited a dull yellow gold fluorescence and had an approximate API gravity of # 50 ;odor was na and staining na present. Cuttings exhibited a trace to poor cut that was clear in color with a white fluorescence. Logger's Opinion of the Show Interval Free condensate or light oil from carbonaceous material *100% Gas-In-Air= 10000 Units sperry-sun Well Name: Oliktok I-2 P62 Location: Oliktok Point, North Slope Alaska DRILLING SERVICES Operator: Kerr-McGee Oil & Gas Corporation ZOne Of ~nteC@St Report Prepared By: Tom Mansfield & Steve Jenkins Report Delivered To: Hole Diameter: 9 7/8" Bit Type: ~x Mill Tooth PDC Before During After Diamond Insert Other Avg. ROP MW MW Avg. Avg. Avg. X ft/hr In Out WOB RPM GPM min/ft 9.7 9.6 10 80 545 41 9.7 9.6 10 80 545 125 9.7 9.6 10 80 547 51 Depth (MD) 5900 to 5980 ft (TVD) 3438 to 3464 ft Zone Of Interest Report No. 1 Show Report No. 1 Date/Time: 01/17/2007 2:32am Max ROP @ 5979 ft Max Gas @ 5979 ft Max CI @ 5979 ft Avg. Gas X Units Avg. Max % Max CI- Max ROP 85 Gas na CI- 197 218 631 na na 35 na Formation Data (GAS-IN-AIR) Avg. PPM (1000s) C1 C7 C3 C4 C5 1.6 0.01 0.00 0.00 0.00 8.0 0.33 0.03 0.01 0.01 4.2 0.00 0.00 0.00 0.00 PPM at Max Gas C1 C2 C3 C4 C5 37.2 0.02 0.01 0.01 0.00 At Max Gas, the visual sample percentages were: 100 % sandstone , 40 % siltstone 40 % coal 20 The reservoir rock was a It tom gry -colored sandstone The grain size was of gr ss and the grain shape was ang-rnd Approximate visual porosity was na % and the visual permeability was poor Grain sorting was well sorted and the rock cement was siltstone The porosity type was intergranular and the secondary components in the rock fragments were: rock grains The rock hardness was poorly indurated and the sample contamination was drilling mud Preliminary Gas-In-Air Show Data Gas o~i c~c Gas X units (PPM's in 1000's) Fiuor? Fiuor? 8X units De th P a % C1 C2 C3 C4 C5 Y/N Y/N De th p 5900 34 13.4 0.110 0.008 0.012 # 0.000 Y Y 5970 201 _ 5910 44 13.2 0 0.107 0.007 # 0.010 0.001 Y Y 5980 75 _ 5920 222 14.2 0.116 0.007 # 0.010 0.001 Y Y _ 5930 77 16.2 0.112 0.006 0.000 0.000 Y Y _ 5942 394 40.0 0.119 0.022 0.020 0.009 Y Y _ 5950 133 12.3 0.100 0.007 0.014 0.000 Y Y _ 5960 207 24.1 0.200 0.002 0.006 0.023 Y Y Liquid Hydrocarbon Data (PPM's in 1000's) C1 C2 C3 C4 22.1 0.180 0.014 0.006 37.1 0.030 0.006 0.001 oa c~+ Fluor? FIuoR C5 Y/N Y/N 0.002 Y Y 0.000 Y Y The liquid hydrocarbon was first detected at 5900 feet and continued through 5960 feet. The liquid phase of the mud was KCL Ploy . The liquid hydrocarbon occurred in the form of cut and was present in the cuttings / carb mtl When the cuttings were examined and studied in the UV box, the liquid hydrocarbons covered a 50 % of the surface of the sample. The oil was clear in color, exhibited a dull yellow gold fluorescence and had an approximate API gravity of # 50 ;odor was na and staining na present. Cuttings exhibited a trace to good cut that was clear in color with a white fluorescence. Logger's Opinion of the Show Interval Free condensate or light oil from carbonaceous material '100% Gas-In-Air= 10000 Units . sperry-Sun Well Name: Oliktok I-2 P61 Location: Oliktok Point, North Slope Alaska DRILLING SERVICES Operator: Kerr-McGee Oil & Gas Corporation ZOn@ Of ~ntereSt Report Prepared By: Doug Wilson & Steve Jenkins Report Delivered To: Hole Diameter: 9 7/8" Bit Type: ~ Mill Tooth PDC Before Durinc Afte Diamond Insert Other Avg. ROP MW MW Avg. Avg. Avg. X ft/hr In Out WOB RPM GPM min/ft 9.8 9.8 10 80 522 60 9.8 9.8 10 80 522 170 9.8 9.8 10 80 522 80 Max ROP @ Avg. Gas X Units Avg. Max % Max CI- Max ROP 35 Gas na CI- 246 450 921 na na 80 na Formation Data Depth (MD) 6414 to 6483 ft (T/D) 3577 to 3604 ft Zone Of Interest Report No. 3 Show Report No. 0 Date/Time: 01/12/2007 5:OOpm ft Max Gas @ ft Max CI @ ft (GAS-IN-AIR) Avg. PPM (1000s) C1 C2 C3 C4 C5 2.7 0.02 0.02 0.02 0.02 37.1 0.44 0.40 0.47 0.39 7.7 0.09 0.11 0.20 0.15 PPM at Max Gas C1 C2 C3 C4 C5 82.7 1.01 0.92 1.09 0.69 At Max Gas, the visual sample percentages were: % sand 10 % sandstone 10 % siltstone 80 The reservoir rock was a It to m brn gry -colored sandstone/sand The grain size was xfg-vfg + c-vcgr and the grain shape was sub angular+ rnd-ang Approximate visual porosity was % and the visual permeability was poor Grain sorting was moderately sorted and the rock cement was siltstone The porosity type was intergranular and the secondary components in the rock fragments were: carbonaceous material The rock hardness was poorly indurated and the sample contamination was drilling mud Preliminary Gas-In-Air Show Data De th p 6422 Gas ~X units % 181 C1 55.0 (PPM'S in 1000's) C2 C3 C4 0.670 0.640 0.770 C5 0.500 ou FIuoR Y/N Y cuc Fluor? Y/N Y p BX De th Gas oil cat units (PPM'S in 1000's) Fluor? Fluor? % C1 C2 C3 C4 C5 Y/N Y/N 6429 186 51.0 0.650 0.610 0.750 0.500 Y Y 6449 133 35.6 0.430 0.400 0.469 0.290 Y Y 6475 104 76.8 0.946 0.846 1.040 0.660 Y Y Liquid Hydrocarbon Data The liquid hydrocarbon was first detected at 6414 feet and continued through 6483 feet. The liquid phase of the mud was KCL Ploy . The liquid hydrocarbon occurred in the form of free oil and was present in the cuttings When the cuttings were examined and studied in the UV box, the liquid hydrocarbons covered a 30 % of the surface of the sample. The oil was brown in color, exhibited a dull yellow fluorescence and had an approximate API gravity of # 45 ;odor was na and staining not present. Cuttings exhibited a poor cut that was trace straw in color with a yellow white fluorescence. Logger's Opinion of the Show Interval Interval contained sample fluorescence and traces of free oil in predominately a siltstone with thin extra fine to very fine grained sandstone with some scattered coarse to very coarse sand. '100% Gas-In-Air-- 10000 Units sperry-sun Weil Name: Oliktok I-2 P61 Location: Oliktok Point, North Slope Alaska DRILLING SERVICES Operator: Kerr-McGee Oil & Gas Corporation ZOne Of inter@St Report Prepared By: Doug Wilson & Steve Jenkins Report Delivered To: Hole Diameter: Bit Type: Mill Tooth PDC Before Durinc After 9 7/8" Diamond Insert Other MW MW Avg. Avg. In Out WOB RPM 9.8 9.8 10 80 9.8 9.8 10 80 9.8 9.8 10 80 Max ROP @ Avg. Avg. ROP Gas Avg. X ft/hr X Units Avg. GPM min/ft Max % Max CI- Max 535 100 ROP 20 Gas na CI- 535 200 256 115 124 na na 535 111 85 na Formation Data Depth (MD) 6046 to 6074 ft (ll/D) 3437 to 3447 ft Zone Of Interest Report No. 1 Show Report No. 0 Date/Time: 01/12/2007 5:OOpm ft Max Gas @ ft Max CI @ ft (GAS-IN-AIR) 4.2 0.00 0.00 0.00 0.00 At Max Gas, the visual sample percentages were: % sand 20 % siltstone 80 % _ The reservoir rock was a It to m brn gry -colored sand The grain size was c-vcgr and the grain shape was ang-rnd Approximate visual porosity was na % and the visual permeability was poor Grain sorting was well sorted and the rock cement was siltstone The porosity type was intergranular and the secondary components in the rock fragments were: rock grains The rock hardness was poorly indurated and the sample contamination was drilling mud Preliminary Gas-In-Air Show Data De th p 6065 Gas 8X units % 113 (PPM's in 1000's) C1 C2 C3 C4 CS 13.4 0.110 0.008 0.012 # 0.000 oll Fluor? Y/N Y c~c Fluor? Y/N Y De th P 8 Gas oll cuc units (PPM's in 1000's) Fluor? Fluor? % C1 C2 C3 C4 C5 Y/N Y/N 6069 111 13.2 0 0.107 0.007 # 0.010 0.001 Y Y 6072 124 14.2 0.116 0.007 # 0.010 0.001 Y Y Liquid Hydrocarbon Data The liquid hydrocarbon was first detected at # 6046 feet and continued through # 6074 feet. The liquid phase of the mud was. KCL Ploy . The liquid hydrocarbon occurred in the form of cut and was present in the cuttings / carb mtl When the cuttings were examined and studied in the UV box, the liquid hydrocarbons covered a 20 % of the surface of the sample. The oil was clear in color, exhibited a dull yellow gold fluorescence and had an approximate API gravity of # 50 ;odor was na and staining na present. Cuttings exhibited a trace to poor cut that was clear in color with a white fluorescence. Logger's Opinion of the Show Interval Free condensate or light oil from carbonaceous material Avg. PPM (1000s) C1 C2 C3 C4 C5 PPM at Max Gas 1.5 0.01 0.00 0.00 0.00 C1 C2 C3 C4 C5 13.0 0.11 0.01 0.01 0.01 14.2 0.12 0.01 0.01 0.00 "100% Gas-In-Air= 10000 Units sperry-Sun Wetl Name: Oliktok I-2 PB1 Location: Oliktok Point, North Slope Alaska DRILLING SERVICES Operator: Kerr-McGee Oi(& Gas Corporation ZOne Of ~ntereSt Report Prepared By: Doug Wilson & Steve Jenkins Report Delivered To: Hole Diameter: 9 7/8" Bit Type: Mill Tooth PDC Before Durinc After Diamond ~ Insert Other Avg. ROP MW MW Avg. Avg. Avg. ~ ft/hr In Out WOB RPM GPM min/ft 9.8 9.8 10 75 542 160 9.8 9.8 10 75 542 180 9.8 9.8 10 75 542 140 Max ROP @ Avg. Gas X Units Avg. Max % Max CI- Max ROP 20 Gas na CI- 247 110 113 na na 20 na Formation Data Depth (MD) 6172 to 6240 ft (lVD) 3485 to 3510 ft Zone Of Interest Report No. 2 Show Report No. 0 Datelf-ime: 01/12/2007 5:OOpm ft Max Gas @ ft Max CI @ ft (GAS-IN-AIR) 2.0 0.02 0.00 0.01 0.00 At Max Gas, the visual sample percentages were: % sand 30 % siltstone 70 The reservoir rock was a gry, brn, wh, clr -colored sand The grain size was c-vcgr and the grain shape was angular- rounded Approximate visual porosity was na % and the visual permeability was poor Grain sorting was well and the rock cement was siltstone The porosity type was intergranular and the secondary components in the rock fragments were: lithic rock grains The rock hardness was unconsolidated and the sample contamination was drilling mud e th p 6179 Gas BX units % 94 1 10.7 (PPM's in 1000's) C2 C3 C4 0.098 0.053 0.001 Preliminary Gas oil cut FIuoR Fluor? CS Y/N Y/N 0.001 Y Y -I n-Air Show Data Gas P ~ units De th % C1 _ 6224 113 12.4 0.114 0.002 # 0.002 0.002 Y Y _ 6235 85 9.4 0.042 # 0.002 0.002 0.002 Y Y Liquid Hydrocarbon Data oil cut (PPM's in 1000's) Fluor'? Fluor? C2 C3 C4 C5 Y/N YIN The liquid hydrocarbon was first detected at 6172 feet and continued through 6240 feet. The liquid phase of the mud was KCL Ploy . The liquid hydrocarbon occurred in the form of condensate and was present in the cuttings When the cuttings were examined and studied in the UV box, the liquid hydrocarbons covered a 30 % of the surface of the sample. The oil was clear in color, exhibited a dull yellow fluorescence and had an approximate API gravity of # 50+ ;odor was na and staining na present. Cuttings exhibited a trace-moderate cut that was clear in color with a white- yellow fluorescence. Logger's Opinion of the Show Interval Cut Fluorescence was in siltstone matrix and was increased by crushing carbonaceous material in siltstone and free with coarse grain sand Flourescence was seen in all samples in this interval, the sand intervals were 6172' - 6188' MD (3485-3490' TVD) and 6207'- 6240' MD (3498-3512' TVD ) Avg. PPM (10005) C1 C2 C3 C4 C5 PPM at Max Gas 3.6 0.00 0.01 0.01 0.00 C1 C2 C3 C4 C5 12.9 0.12 0.02 0.03 0.00 12.9 0.12 0.02 0.03 0.00 *100% Gas-In-Air= 10000 Units s pe rry-sun Well Name: Oliktok I-2 Location: Oliktok Point, North Slope Alaska DRILLING SERVICES Operator: Kerr-McGee Oil & Gas Corporation ZOlrle Of ~17tereSt Report Prepared By: Chuck Stringer & Tom Mansfield Report Delivered To: Depth (MD) 9410 to 12645 ft (TVD) 3600 to 3600 ft Zone Of Interest Report No. 1 Show Report No. 0 Date/Time: 01/29/2007 S:OOpm Hole Diameter: 6 3/4" Max ROP @ ft Max Gas @ ft Max CI @ ft Bit Type: Mill Tooth PDC Before Durinc After Diamond Insert Other Avg. ROP MW MW Avg. Avg. Avg. ~ ft/hr In Out WOB RPM GPM min/ff 9.3 ] 10 80 312 200 9.3 9.3 10 80 321 220 9.3 9.3 10 80 321 200 Avg. Gas X Units Avg. Max % Max CI- Max ROP 20 Gas na CI- 256 115 124 na na 85 na Formation Data (GAS-IN-AIR) Avg. PPM (1000s) C1 C2 C3 C4 C5 PPM at Max Gas 1.5 0.01 0.00 0.00 0.00 C1 C2 C3 C4 C5 13.0 0.11 0.01 0.01 0.01 14.2 0.12 0.01 0.01 0.00 4.2 0.00 0.00 0.00 0.00 At Max Gas, the visual sample percentages were: % sand 20 % siltstone 80 % _ The reservoir rock was a It - m gry - It gry/brn -colored sand The grain size was of-fgr and the grain shape was sb ang - sb rnd Approximate visual porosity was na % and the visual permeability was poor Grain sorting was mod sorted and the rock cement was quartz The porosity type was intergranular and the secondary components in the rock fragments were: rock grains The rock hardness was poorly indurated and the sample contamination was drilling mud Preliminary Gas-In-Air Show Data De th p 9441 Gas 8X units % 679 C1 75.0 (PPM's in 1000's) C2 C3 C4 C5 0.486 0.308 0.295 # 0.110 oii Fiuor? Y/N Y c~c Fiuor? Y/N Y p ~X De th Gas oii cut units (PPM's in 1000's) Fluor? FIuoR % C1 C2 C3 C4 C5 Y/N Y/N 9691 631 69.8 0 0.453 0.292 # 0.295 0.117 Y Y 10108 798 86.3 0.552 0.344 # 0.348 0.138 Y Y 10279 776 84.7 0.530 0.310 0.305 0.120 Y Y 11975 815 85.3 0.567 0.306 0.357 0.148 Y Y 12156 781 82.5 0.553 0.273 0.314 0.135 Y Y 12643 767 80.5 0.510 0.273 0.356 0.162 Y Y Liquid Hydrocarbon Data The liquid hydrocarbon was first detected at # 9410 feet and continued through 12645 feet. The liquid phase of the mud was Enviromul The liquid hydrocarbon occurred in the form of cut and was present in the cuttings / carb mtl When the cuttings were examined and studied in the UV box, the liquid hydrocarbons covered a 20 % of the surface of the sample. The oil was clear in color, exhibited a dull yellow gold fluorescence and had an approximate API gravity of # 50 ;odor was na and staining na present. Cuttings exhibited a trace to poor cut that was clear in color with a white fluorescence. Logger's Opinion of the Show Interval Gas with some possible condensate or light oil from carbonaceous material '100% Gas-In-Air= 10000 Units Halliburton Company Survey Report Company: .Kerr McGee Date: 2/16/2007 Time: 14:29:22 Page: 1 Field: OLIKTOK POINT Co-ordinate(NF,) Reference: Well: Oliktok Point I-2, True North Site: OLIKTOK POINT Vertical (TVD) Reference: Oliktok Point I-2 PB1: 53.6 Well: Oliktok Point I-2 Section (VS) Reference: Well (O.OON,O.OOE,303.55Azr) Wellpath: Oliktok Point I-2 P61 Survey Calculation Method: Minimum Curvature Db: Oracle Field: OLIKTOK POINT Map System:US State Plane Coordinate System 1927 Map Zone: Alaska, Zone 4 Geo Datum: NAD27 (Clarke 1866) Coordinate System: Well Centre Sys Datum: Mean Sea Level Geomagnetic Model: bggm2006 Well: Oliktok Point I-2 Slot Name: Well Position: +N/-S -3.83 ft Northing: 6036577.31 ft Latitude: 70 30 40.023 N +E/-W -7.07 ft Easting : 516753.79 ft Longitude: 149 51 46.449 W Position Uncertainty: 0.00 ft Wellpath: Oliktok Point I-2 PBi 500292332670 Current Datum: Oliktok Point I-2 PBi : Height 53.65 ft Magnetic Data: 1 /1 /2007 Field Strength: 57618 nT Vertical Section: Depth From (TVD) +N/-S ft ft 41.45 0.00 Survey Program for Definitive Wellpath Date: 2/16/2007 Validated: No Actual From To Survey ft ft 96.00 326.00 Oliktok Point I-2 PBi Gyro (96 418.47 6674.35 Oliktok Point I-2 PB1 IIFR+MS Survey ~4D Incl ft deg 41.45 0.00 96.00 0.07 113.00 0.34 202.00 1.02 326.00 3.81 418.47 5.83 514.01 7.25 604.55 11.31 696.96 15.16 787.18 17.41 868.57 18.19 957.08 21.68 1049.68 24.71 1144.90 29.56 1238.10 35.22 1332.76 37.74 1429.59 40.33 1523.70 41.02 1597.12 41.51 1713.22 38.52 1807.39 41.56 1900.47 44.50 1995.48 49.22 2090.77 59.40 2180.81 64.25 2280.81 63.37 2375.52 64.55 2469.70 64.95 2510.28 64.51 Azim - - TVD Sys'1'VD deg ft ft 0.00 41.45 -12.20 344.94 96,00 42.35 349.14 113.00 59.35 316.00 201,99 148.34 311.06 325.87 272.22 312.90 418.01 364.36 310.31 512.93 459.28 304.55 602.26 548.61 300.45 692.20 638.55 300.32 778.80 725.15 300.53 856.29 802.64 299.86 939.49 885.84 299.53 1024.59 970.94 298.03 1109.31 1055.66 295.20 1187.98 1134.33 297.84 1264.09 1210.44 300.76 1339.30 1285.65 300.90 1410.68 1357.03 301.26 1465.87 1412.22 301.21 1554.77 1501.12 300.15 1626.86 1573.21 299.51 1694.90 1641.25 298.79 1759.84 1706.19 299.02 1815.36 1761.71 300.78 1857.87 1804.22 302.15 1902.00 1848.35 302.74 1943.58 1889.93 303.06 1983.76 1930.11 303.72 2001.08 1947.43 Drilled From: Tie-on Depth: Above System Datum: Declination: Mag Dip Angle: +E/-W ft 0.00 Well Ref. Point 41.45 ft Mean Sea Level 23.60 deg 80.94 deg Direction deg 303.55 Version: 3 Toolcode Tool Name CB-GYRO-SS Camera based gyro single shot MWD+IFR-AK-CAZ-SCMWD+IFR AK CAZ SCC N/S E/W ft ft 0.00 0.00 0.03 -0.01 0.09 -0.02 0.92 -0.62 4.42 -4.49 9.64 -10.25 16.84 -18.40 25.58 -30.08 36.84 -47.97 49.64 -69.79 62.24 -91.24 77.40 -117.33 95.46 -149.01 116.32 -187.08 138.58 -231.73 163.74 -282.06 193.61 -335.20 225.05 -387.87 250.05 -429.34 288.75 -493.16 319.65 -545.27 351.23 -600.37 384.97 -660.90 422.34 -728.56 461.92 -797.33 508.75 -873.87 554.40 -945.68 600.67 -1017.20 620.87 -1047.84 MapN MapE Tool ft ft 6036577.31 516753.79 TIE LINE 6036577.34 516753.79 CB-GYRO-SS 6036577.40 516753.77 CB-GYRO-SS 6036578.23 516753.17 CB-GYRO-SS 6036581.72 516749.29 CB-GYRO-SS 6036586.92 516743.52 MWD+IFR-AK-CAZ-SC 6036594.10 516735.35 MWD+IFR-AK-CAZ-SC 6036602.81 516723.66 MWD+IFR-AK-CAZ-SC 6036614.04 516705.75 MWD+IFR-AK-CAZ-SC 6036626.78 516683.90 MWD+IFR-AK-CAZ-SC 6036639.33 516662.42 MWD+IFR-AK-CAZ-SC 6036654.43 516636.30 MWD+IFR-AK-CAZ-SC 6036672.42 516604.58 MWD+IFR-AK-CAZ-SC 6036693.19 516566.47 MWD+IFR-AK-CAZ-SC 6036715.35 516521.77 MWD+IFR-AK-CAZ-SC 6036740.39 516471.40 MWD+IFR-AK-CAZ-SC 6036770.14 516418.19 MWD+IFR-AK-CAZ-SC 6036801.46 516365.46 MWD+IFR-AK-CAZ-SC 6036826.36 516323.93 MWD+IFR-AK-CAZ-SC 6036864.92 516260.03 MWD+IFR-AK-CAZ-SC 6036895.69 516207.86 MWD+IFR-AK-CAZ-SC 6036927.14 516152.70 MWD+IFR-AK-CAZ-SC 6036960.75 516092.09 MWD+IFR-AK-CAZ-SC 6036997.96 516024.35 MWD+IFR-AK-CAZ-SC 6037037.38 515955.50 MWD+IFR-AK-CAZ-SC 6037084.03 515878.87 MWD+IFR-AK-CAZ-SC 6037129.52 515806.96 MWD+IFR-AK-CAZ-SC 6037175.62 515735.35 MWD+IFR-AK-CAZ-SC 6037195.75 515704.66 MWD+IFR-AK-CAZ-SC Halliburton Company Survey Report ( Company: Kerr McGee Field: OLIKTOK POINT Site: OL IKTOK POIN T Nell: Oli ktok Point I-2 ~Wellpath: Oli ktak Point I-2 P61 Survev bID Incl Azim ft deg deg 2612.88 64.28 303.92 2706.83 60.97 303.45 2801.57 61.61 303.76 2896.10 62.22 304.39 2990.18 61.72 304.75 3085.07 63.44 304.83 3178.93 65.83 305.28 3273.56 67.83 306.00 3369.65 65.03 306.03 3463.61 63.39 306.11 3558.17 64.93 305.17 3654.05 64.08 305.05 3748.20 63.70 304.87 3842.28 64.16 305.16 3936.91 63.70 303.59 4031.54 63.17 302.14 4124.95 62.30 302.17 4219.89 66.78 303.67 4313.49 66.22 302.51 4407.67 65.41 302.18 4501.76 64.28 302.00 4595.95 63.51 302.22 4688.81 66.37 303.22 4783.36 67.97 303.44 4878.38 69.75 302.66 4971.10 69.45 302.46 5064.41 70.24 302.67 5165.08 69.59 302.99 5253.48 68.96 302.66 5348.03 67.45 302.59 5443.88 69.96 305.48 5538.88 69.28 305.80 5635.20 69.42 305.37 5729.50 68.58 304.91 5827.39 69.67 305.64 5921.99 69.24 306.47 6012.76 68.80 306.66 6107.61 67.83 306.48 6202.14 67.99 306.38 6295.28 67.79 306.91 6391.43 67.17 305.81 6485.56 66.13 306.18 6580.11 66.09 306.29 6674.35 65.65 306.36 6715.00 65.65 306.36 --__ --- Date: 2/16/2007 Time: 14:29:22 Page: 2 Co-ordinate(NE) Reference: Well: Oliktok Point I-2, True North Vertical (TVD) Reference: Oliktok Point I-2 PB1: 53.6 Section (VS) Reference: Well (O.OON,O.OOE,303.55Azi) Survey Calculation >Viethod: Minimum Curvature Db: Oracle -- _- _ _ _ - TVD Sys TVD N/S E/W MapN MapE Tool ft ft ft ft ft ft 2045.42 1991.77 672.36 -1124.71 6037247.06 515627.69 MWD+IFR-AK-CAZ-SC 2088.61 2034.96 718.63 -1194.11 6037293.17 515558.18 MWD+IFR-AK-CAZ-SC 2134.12 2080.47 764.62 -1263.32 6037339.00 515488.88 MWD+IFR-AK-CAZ-SC 2178.63 2124.98 811.35 -1332.40 6037385.57 515419.70 MWD+IFR-AK-CAZ-SC 2222.84 2169.19 858.47 -1400.78 6037432.53 515351.22 MWD+IFR-AK-CAZ-SC 2266.53 2212.88 906.53 -1469.95 6037480.43 515281.95 MWD+IFR-AK-CAZ-SC 2306.74 2253.09 955.24 -1539.37 6037528.98 515212.43 MWD+IFR-AK-CAZ-SC 2343.97 2290.32 1005.93 -1610.06 6037579.50 515141.62 MWD+IFR-AK-CAZ-SC 2382.39 2328.74 1057.71 -1681.30 6037631.12 515070.28 MWD+IFR-AK-CAZ-SC 2423.27 2369.62 1107.52 -1749.68 6037680.77 515001.80 MWD+IFR-AK-CAZ-SC 2464.48 2410.83 1157.11 -1818.84 6037730.19 514932.53 MWD+IFR-AK-CAZ-SC 2505.75 2452.10 1206.88 -1889.64 6037779.80 514861.63 MWD+IFR-AK-CAZ-SC 2547.19 2493.54 1255.32 -1958.92 6037828.08 514792.24 MWD+IFR-AK-CAZ-SC 2588.53 2534.88 1303.81 -2028.14 6037876.41 514722.92 MWD+IFR-AK-CAZ-SC 2630.12 2576.47 1351.81 -2098.29 6037924.24 514652.67 MWD+IFR-AK-CAZ-SC 2672.44 2618.79 1397.74 -2169.38 6037970.01 514581.49 MWD+IFR-AK-CAZ-SC 2715.23 2661.58 1441.93 -2239.67 6038014.03 514511.10 MWD+IFR-AK-CAZ-SC 2756.04 2702.39 1488.52 -2311.60 6038060.46 514439.08 MWD+IFR-AK-CAZ-SC 2793.36 2739.71 1535.38 -2383.51 6038107.15 514367.07 MWD+IFR-AK-CAZ-SC 2831.95 2778.30 1581.35 -2456.09 6038152.95 514294.39 MWD+IFR-AK-CAZ-SC 2871.94 2818.29 1626.59 -2528.24 6038198.03 514222.14 MWD+IFR-AK-CAZ-SC 2913.38 2859.73 1671.55 -2599.89 6038242.82 514150.40 MWD+IFR-AK-CAZ-SC 2952.71 2899.06 1717.02 -2670.64 6038288.13 514079.55 MWD+IFR-AK-CAZ-SC 2989.40 2935.75 1764.90 -2743.45 6038335.84 514006.64 MWD+IFR-AK-CAZ-SC 3023.67 2970.02 1813.23 -2817.73 6038383.99 513932.26 MWD+IFR-AK-CAZ-SC 3055.99 3002.34 1860.00 -2890.98 6038430.59 513858.91 MWD+IFR-AK-CAZ-SC 3088.14 3034.49 1907.15 -2964.80 6038477.57 513784.99 MWD+IFR-AK-CAZ-SC 3122.71 3069.06 1958.41 -3044.25 6038528.65 513705.44 MWD+IFR-AK-CAZ-SC 3153.99 3100.34 2003.23 -3113.73 6038573.30 513635.87 MWD+IFR-AK-CAZ-SC 3189.09 3135.44 2050.56 -3187.67 6038620.46 513561.83 MWD+IFR-AK-CAZ-SC 3223.91 3170.26 2100.55 -3261.65 6038670.28 513487.74 MWD+IFR-AK-CAZ-SC 3256.99 3203.34 2152.44 -3334.02 6038722.00 513415.26 MWD+IFR-AK-CAZ-SC 3290.96 3237.31 2204.88 -3407.32 8038774.28 513341.85 MWD+IFR-AK-CAZ-SC 3324.75 3271.10 2255.56 -3479.31 6038824.78 513269.75 MWD+IFR-AK-CAZ-SC 3359.63 3305.98 2308.38 -3553.98 6038877.43 513194.97 MWD+IFR-AK-CAZ-SC 3392.83 3339.18 2360.51 -3625.59 6038929.40 513123.25 MWD+IFR-AK-CAZ-SC 3425.33 3371.68 2411.00 -3693.66 6038979.73 513055.07 MWD+IFR-AK-CAZ-SC 3460.38 3406.73 2463.51 -3764.45 6039032.08 512984.18 MWD+IFR-AK-CAZ-SC 3495.93 3442.28 2515.53 -3834.92 6039083.93 512913.59 MWD+IFR-AK-CAZ-SC 3530.99 3477.34 2567.03 -3904.16 6039135.27 512844.25 MWD+IFR-AK-CAZ-SC 3567.81 3514.16 2619.69 -3975.68 6039187.76 512772.61 MWD+IFR-AK-CAZ-SC 3605.12 3551.47 2670.48 -4045.60 6039238.39 512702.58 MWD+IFR-AK-CAZ-SC 3643.41 3589.76 2721.58 -4115.33 6039289.32 512632.75 MWD+IFR-AK-CAZ-SC 3681.94 3628.29 2772.52 -4184.62 6039340.11 512563.35 MWD+IFR-AK-CAZ-SC 3698.70 3645.05 2794.48 -4214.45 6039361.99 512533.48 PROJECTED to TD ~ Halliburton Company Survey Report Company: Kerr Mctaee Date: 2/16/2007 Time: 15:37:16 Page: 1 Field: OLIKTOK POINT Co-ordinate(nE) Reference: Well: Oliktok Point I-2, True North i Site: OLIKTOK POINT Vertical (TVDj Refer ence: Oliktok Point I-2 P61: 53.6 Well: Oliktok Point I-2 Section (VS) Reference: Well (O.OON,O.OOE,309.35Azi) Wellpath: Oliktok Point I-2 P62 Survey Calculation D 7ethod: Minimum Curvature Db: Oracle Field: OLIKTOK POINT -- _ -_ Map System:US State Plane Coordinate System 1 927 Map Zone: Alaska, Zone 4 Geo Datum: NAD27 (Clarke 1866) Coordinate System: Well Centre Sys Datum: Mean Sea Level Geomagnetic Model: bggm2006 Well: Oliktok Point I-2 Slot Name: Well Position: +N/-S -3.83 ft Northing: 6036577.31 ft Latitude: 70 30 40.023 N +FJ-W -7.07 ft Easting : 516753.79 ft Longitude: 149 51 46.449 W Position Uncertainty: 0.00 ft Wellpath: Oliktok Point I-2 PB2 Drilled From: Oliktok Point I-2 PBi 500292332671 Tie-on Depth: 4124.95 ft Current Datum: Oliktok Point I-2 PB1: Height 53.65 ft Above System Datum: Mean Sea Level Magnetic Data: 111/2007 Declination: 23.60 deg Field Strength: 57618 nT Mag Dip Angle: 80.94 deg Vertical Section: Depth From (TVD) +N/-S +E/-W Direction ft ft ft deg 41.45 0.00 0.00 309.35 Survey Program for Definitive Wellpath Date: 2/16/2007 Validated: No Version: 1 Actual From To Survey Toolcode Tool Name ft ft 96.00 326.00 Oliktok Point I-2 PBi Gyro (96 CB-GYRO-SS Camera based gyro single shot 418.47 4124.95 Oliktok Point I-2 PB1 IIFR+MS MWD+IFR-AK-CAZ-SCMWD+IFR AK CAZ SCC 4229.11 9707.90 Oliktok Point I-2 P62 IIFR+MS MWD+IFR-AK-CAZ-SCMWD+IFR AK CAZ SCC Survey - J4D Incl Azim TVD Sys TVD N/S E/R' _ __ MapN MapE Toot ft deg deg ft ft ft ft ft ft 41.45 0.00 0.00 41.45 -12.20 0.00 0.00 6036577.31 516753.79 TIE LINE 96.00 0.07 344.94 96.00 42.35 0.03 -0.01 6036577.34 516753.79 CB-GYRO-SS 113.00 0.34 349.14 113.00 59.35 0.09 -0.02 6036577.40 516753.77 CB-GYRO-SS 202.00 1.02 316.00 201.99 148.34 0.92 -0.62 6036578.23 516753.17 CB-GYRO-SS 326.00 3.81 311.06 325.87 272.22 4.42 -4.49 6036581.72 516749.29 CB-GYRO-SS 418.47 5.83 312.90 418.01 364.36 9.64 -10.25 6036586.92 516743.52 MWD+IFR-AK-CAZ-SC 514.01 7.25 310.31 512.93 459.28 16.84 -18.40 6036594.10 516735.35 MWD+IFR-AK-CAZ-SC 604.55 11.31 304.55 602.26 548.61 25.58 -30.08 6036602.81 516723.66 MWD+IFR-AK-CAZ-SC 696.96 15.16 300.45 692.20 638.55 36.84 -47.97 6036614.04 516705.75 MWD+IFR-AK-CAZ-SC 787.18 17.41 300.32 778.80 725.15 49.64 -69.79 6036626.78 516683.90 MWD+IFR-AK-CAZ-SC 868.57 18.19 300.53 856.29 802.64 62.24 -91.24 6036639.33 516662.42 MWD+IFR-AK-CAZ-SC 957.08 21.68 299.86 939.49 885.84 77.40 -117.33 6036654.43 516636.30 MWD+IFR-AK-CAZ-SC 1049.68 24.71 299.53 1024.59 970.94 95.46 -149.01 6036672.42 516604.58 MWD+IFR-AK-CAZ-SC 1144.90 29.56 298.03 1109.31 1055.66 116.32 -187.08 6036693.19 516566.47 MWD+IFR-AK-CAZ-SC 1238.10 35.22 295.20 1187.98 1134.33 138.58 -231.73 6036715.35 516521.77 MWD+IFR-AK-CAZ-SC 1332.76 37.74 297.84 1264.09 1210.44 163.74 -282.06 6036740.39 516471.40 MWD+IFR-AK-CAZ-SC 1429.59 40.33 300.76 1339.30 1285.65 193.61 -335.20 6036770.14 516418.19 MWD+IFR-AK-CAZ-SC 1523.70 41.02 300.90 1410.68 1357.03 225.05 -387.87 6036801.46 516365.46 MWD+IFR-AK-CAZ-SC 1597.12 41.51 301.26 1465.87 1412.22 250.05 -429.34 6036826.36 516323.93 MWD+IFR-AK-CAZ-SC 1713.22 38.52 301.21 1554.77 1501.12 288.75 -493.16 6036864.92 516260.03 MWD+IFR-AK-CAZ-SC 1807.39 41.56 300.15 1626.86 1573.21 319.65 -545.27 6036895.69 516207.86 MWD+IFR-AK-CAZ-SC 1900.47 44.50 299.51 1694.90 1641.25 351.23 -600.37 6036927.14 516152.70 MWD+IFR-AK-CAZ-SC 1995.48 49.22 298.79 1759.84 1706.19 384.97 -660.90 6036960.75 516092.09 MWD+IFR-AK-CAZ-SC 2090.77 59.40 299.02 1815.36 1761.71 422.34 -728.56 6036997.96 516024.35 MWD+IFR-AK-CAZ-SC 2180.81 64.25 300.78 1857.87 1804.22 461.92 -797.33 6037037.38 515955.50 MWD+IFR-AK-CAZ-SC 2280.81 63.37 302.15 1902.00 1848.35 508.75 -873.87 6037084.03 515878.87 MWD+IFR-AK-CAZ-SC 2375.52 64.55 302.74 1943.58 1889.93 554.40 -945.68 6037129.52 515806.96 MWD+IFR-AK-CAZ-SC 2469.70 64.95 303.06 1983.76 1930.11 600.67 -1017.20 6037175.62 515735.35 MWD+IFR-AK-CAZ-SC Halliburton Company Survey Report Company: Kerr McGee _---- Date: 2/16/2007 Time: 15:37:16 __ Page: 2 Field: OLIKTOK POIN T Co-ordinate(NE) Reference: Well: Oliktok Point I -2, True North ~ Site: OL IKTOK POIN T Vertical (TWj Refe rence: Oli ktok Point I-2 PB 1: 53.6 Nell: Oli ktok Point I-2 Section (VS) Reference: Well (O.OON,O.OOE,309.35Azi) Nellpath: Oli ktok Point I-2 PB2 Survey Calculation i`Iethod: Mi nimum Curvature Db: Oracle ~ Survev MD Incl Azim TVD Sys TVD N/S E/W i~tapN MapE Toul ft deg deg. ft ft ft ft ft ft 2510.28 64.51 303.72 2001.08 1947.43 620.87 -1047.84 6037195.75 - _ - 515704.66 - __ MWD+IFR-AK-CAZ-SC 2612.88 64.28 303.92 2045.42 1991.77 672.36 -1124.71 6037247.06 515627.69 MWD+IFR-AK-CAZ-SC 2706.83 60.97 303.45 2088.61 2034.96 718.63 -1194.11 6037293.17 515558.18 MWD+IFR-AK-CAZ-SC 2801.57 61.61 303.76 2134.12 2080.47 764.62 -1263.32 6037339.00 515488.88 MWD+IFR-AK-CAZ-SC 2896.10 62.22 304.39 2178.63 2124.98 811.35 -1332.40 6037385.57 515419.70 MWD+IFR-AK-CAZ-SC 2990.18 61.72 304.75 2222.84 2169.19 858.47 -1400.78 6037432.53 515351.22 MWD+IFR-AK-CAZ-SC 3085.07 63.44 304.83 2266.53 2212.88 906.53 -1469.95 6037480.43 515281.95 MWD+IFR-AK-CAZ-SC 3178.93 65.83 305.28 2306.74 2253.09 955.24 -1539.37 6037528.98 515212.43 MWD+IFR-AK-CAZ-SC 3273.56 67.83 306.00 2343.97 2290.32 1005.93 -1610.06 6037579.50 515141.62 MWD+IFR-AK-CAZ-SC 3369.65 65.03 306.03 2382.39 2328.74 1057.71 -1681.30 6037631.12 515070.28 MWD+IFR-AK-CAZ-SC 3463.61 63.39 306.11 2423.27 2369.62 1107.52 -1749.68 6037680.77 515001.80 MWD+IFR-AK-CAZ-SC I 3558.17 64.93 305.17 2464.48 2410.83 1157.11 -1818.84 6037730.19 514932.53 MWD+IFR-AK-CAZ-SC 3654.05 64.08 305.05 2505.75 2452.10 1206.88 -1889.64 6037779.80 514861.63 MWD+IFR-AK-CAZ-SG 3748.20 63.70 304.87 2547.19 2493.54 1255.32 -1958.92 6037828.08 514792.24 MWD+IFR-AK-CAZ-SC 3842.28 64.16 305.16 2588.53 2534.88 1303.81 -2028.14 6037876.41 514722.92 MWD+IFR-AK-CAZ-SC 3936.91 63.70 303.59 2630.12 2576.47 1351.81 -2098.29 6037924.24 514652.67 MWD+IFR-AK-CAZ-SC 4031.54 63.17 302.14 2672.44 2618.79 1397.74 -2169.38 6037970.01 514581.49 MWD+IFR-AK-CAZ-SC 4124.95 62.30 302.17 2715.23 2661.58 1441.93 -2239.67 6038014.03 514511.10 MWD+IFR-AK-CAZ-SC 4229.11 61.50 301.90 2764.29 2710.64 1490.67 -2317.56 6038062.59 514433.11 MWD+IFR-AK-CAZ-SC 4291.63 61.46 302.25 2794.15 2740.50 1519.84 -2364.11 6038091.66 514386.50 MWD+IFR-AK-CAZ-SC 4328.44 61.41 302.57 2811.75 2758.10 1537.16 -2391.40 6038108.92 514359.17 MWD+IFR-AK-CAZ-SC 4398.49 63.64 302.87 2844.06 2790.41 1570.76 -2443.69 6038142.39 514306.81 MWD+IFR-AK-CAZ-SC 4424.86 64.75 303.01 2855.54 2801.89 1583.67 -2463.61 6038155.25 514286.86 MWD+IFR-AK-CAZ-SC 4477.49 65.65 302.66 2877.62 2823.97 1609.57 -2503.75 6038181.07 514246.67 MWD+IFR-AK-CAZ-SC 4516.91 66.07 302.86 2893.74 2840.09 1629.04 -2534.01 6038200.46 514216.37 MWD+IFR-AK-CAZ-SC 4611.49 64.47 303.82 2933.30 2879.65 1676.24 -2605.77 6038247.50 514144.51 MWD+IFR-AK-CAZ-SC 4706.88 64.38 303.26 2974.48 2920.83 1723.79 -2677.49 6038294.88 514072.69 MWD+IFR-AK-CAZ-SC 4800.70 65.46 304.02 3014.25 2960.60 1770.86 -2748.23 6038341.79 514001.85 MWD+IFR-AK-CAZ-SC 4895.84 65.44 303.41 3053.78 3000.13 1818.89 -2820.21 6038389.65 513929.77 MWD+IFR-AK-CAZ-SC 4990.88 67.99 303.62 3091.35 3037.70 1867.09 -2892.99 6038437.68 513856.89 MWD+IFR-AK-CAZ-SC 5086.65 67.65 303.36 3127.50 3073.85 1916.03 -2966.95 6038486.45 513782.82 MWD+IFR-AK-CAZ-SC 5181.83 65.07 303.00 .3165.67 3112.02 1963.75 -3039.92 6038533.99 513709.76 MWD+IFR-AK-CAZ-SC 5276.30 65.23 304.07 3205.37 3151.72 2011.10 -3111.37 6038581.18 513638.20 MWD+IFR-AK-CAZ-SC 5371.72 68.52 304.87 3242.84 3189.19 2060.77 -3183.70 6038630.68 513565.77 MWD+IFR-AK-CAZ-SC 5466.73 68.24 305.38 3277.85 3224.20 2111.59 -3255.94 6038681.33 513493.42 MWD+IFR-AK-CAZ-SC 5560.13 67.61 304.91 3312.95 3259.30 2161.41 -3326.72 6038730.99 513422.54 MWD+IFR-AK-CAZ-SC 5654.13 66.47 305.26 3349.61 3295.96 2211.16 -3397.54 6038780.57 513351.61 MWD+IFR-AK-CAZ-SC 5749.24 66.91 305.67 3387.25 3333.60 2261.84 -3468.68 6038831.09 513280.36 MWD+IFR-AK-CAZ-SC 5843.47 71.64 305.53 3420.59 3366.94 2313.13 -3540.33 6038882.21 513208.61 MWD+IFR-AK-CAZ-SC 5937.92 71.07 305.38 3450.78 3397.13 2365.04 -3613.22 6038933.95 513135.61 MWD+IFR-AK-CAZ-SC 6032.85 72.30 304.35 3480.61 3426.96 2416.55 -3687.17 6038985.29 513061.55 MWD+IFR-AK-CAZ-SC 6127.29 74.48 303.75 3507.61 3453.96 2467.22 -3762.15 6039035.78 512986.47 MWD+IFR-AK-CAZ-SC 6221.47 78.65 304.21 3529.49 3475.84 2518.40 -3838.09 6039086.80 512910.42 MWD+IFR-AK-CAZ-SC 6315.11 82.15 305.04 3545.10 3491.45 2570.86 -3914.05 6039139.08 512834.35 MWD+IFR-AK-CAZ-SC 6411.17 85.51 305.80 3555.42 3501.77 2626.20 -3991.87 6039194.24 512756.41 MWD+IFR-AK-CAZ-SC 6504.67 85.22 305.09 3562.98 3509.33 2680.25 -4067.79 6039248.11 512680.38 MWD+IFR-AK-CAZ-SC 6598.00 85.88 305.29 3570.22 3516.57 2733.87 -4143.83 6039301.55 512604.22 MWD+IFR-AK-CAZ-SC 6667.85 84.16 304.68 3576.28 3522.63 2773.77 -4200.84 6039341.32 512547.13 MWD+IFR-AK-CAZ-SC 6764.60 86.71 308.02 3583.99 3530.34 2830.92 -4278.50 6039398.29 512469.35 MWD+IFR-AK-CAZ-SC 6859.91 89.80 310.18 3586.89 3533.24 2891.00 -4352.41 6039458.19 512395.31 MWD+IFR-AK-CAZ-SC 6952.42 93.82 313.03 3583.97 3530.32 2952.37 -4421.53 6039519.40 512326.06 MWD+IFR-AK-CAZ-SC 7046.28 90.72 314.24 3580.25 3526.60 3017.08 -4489.40 6039583.95 512258.05 MWD+IFR-AK-CAZ-SC Halliburton Company Survey Report Company: Kerr McGee Field: OL IKTOK POIN T Site: OL IKTOK POIN T Well: Oli ktok Point I-2 Wellpath: Oli ktok Point I-2 PB2 L __ Survev MD Iuci Azin ft deg de 7143.76 88.68 311 7237.95 88.06 30 7335.17 87.20 30 7424.98 88.43 31 7522.25 92.14 31 7618.32 91.95 31 7713.21 89.24 31 7808.93 90.47 31 7902.45 90.47 31 j 7996.99 91.21 32 8092.69 91.28 32 8189.25 91.28 32 8285.20 91.59 325 8379.69 90.29 325 8471.55 89.30 324 8564.45 90.17 323 8655.61 87.38 323 8758.01 85.41 325 8855.27 89.86 325 8950.66 88.13 325 9046.98 90.78 324 9142.25 93.94 323 9229.24 92.57 323 9323.80 89.24 321 9417.56 88.56 319 9514.57 87.45 319 9612.62 85.46 319 9707.90 86.71 .319 9747.00 86.71 319 Date: 2/16/2007 Time: 15:37:16 Page: 3 Co-ordinate(NE) Reference: Well: Oliktok Point I-2, True North Vertical (TVD) Reference: Oliktok Point I-2 PB1: 53.6 Section (VS) Reference: Well (O.OON,O.OOE,309.35Azi) ~ Survey Calculation Method: Minimum Curvature Db: Oracle 9 .31 9.10 9.63 3.00 6.71 9.16 9.86 7.71 9.63 2.01 2.07 4.24 .13 .27 .14 .54 .50 .03 .46 .39 .48 .42 .70 .73 .81 .27 .07 .62 .62 'CVD Sys TVD N/S E/~i' MapN ft ft ft ft ft 3580.76 3527.11 3083.27 -4560.94 6039649.97 3583.44 3529.79 3144.04 -4632.84 6039710.58 3587.46 3533.81 3205.65 -4707.94 6039772.01 3590.88 3537.23 3264.89 -4775.33 6039831.09 3590.40 3536.75 3333.47 -4844.26 6039899.51 3586.97 3533.32 3404.74 -4908.58 6039970.63 3585.99 3532.34 3476.90 -4970.19 6040042.64 3586.23 3532.58 3548.90 -5033.25 6040114.49 3585.46 3531.81 3619.12 -5095.00 6040184.56 3584.08 3530.43 3692.39 -5154.72 6040257.69 3582.00 3528.35 3767.82 -5213.57 6040332.98 3579.84 3526.19 3845.07 -5271.46 6040410.10 3577.44 3523.79 3923.34 -5326.91 6040488.23 3575.89 3522.24 4000.92 -5380.82 6040565.68 3576.21 3522.56 4075.89 -5433.90 6040640.52 3576.64 3522.99 4150.89 -5488.71 6040715.40 3578.59 3524.94 4224.17 -5542.89 6040788.54 3585.03 3531.38 4307.12 -5602.57 6040871.35 3589.04 3535.39 4386.94 -5657.96 6040951.03 3590.72 3537.07 4465.47 -5712.08 6041029.43 3591.63 3537.98 4544.29 -5767.41 6041108.13 3587.71 3534.06 4621.24 -5823.42 6041184.94 3582.77 3529.12 4691.11 -5875.00 6041254.69 3581.28 3527.63 4766.32 -5932.27 6041329.76 3583.08 3529.43 4838.93 -5991.55 6041402.23 3586.45 3532.80 4912.70 -6054.46 6041475.84 3592.52 3538.87 4986.74 -6118.44 6041549.74 3599.02 3545.37 5058.85 -6180.37 6041621.70 3601.27 3547.62 5088.59 -6205.66 6041651.38 MapE Tool 512186.37 MWD+IFR-AK-CAZ-SC 512114.33 MWD+IFR-AK-CAZ-SC 512039.11 MWD+IFR-AK-CAZ-SC 511971.58 MWD+IFR-AK-CAZ-SC 511902.51 MWD+IFR-AK-CAZ-SC 511838.03 MWD+IFR-AK-CAZ-SC 511776.27 MWD+IFR-AK-CAZ-SC 511713.05 MWD+IFR-AK-CAZ-SC 511651.15 MWD+IFR-AK-CAZ-SC 511591.27 MWD+IFR-AK-CAZ-SC 511532.26 MWD+IFR-AK-CAZ-SC 511474.20 MWD+IFR-AK-CAZ-SC 511418.58 MWD+IFR-AK-CAZ-SC 511364.50 MWD+IFR-AK-CAZ-SC 511311.26 MWD+IFR-AK-CAZ-SC 511256.28 MWD+IFR-AK-CAZ-SC 511201.94 MWD+IFR-AK-CAZ-SC 511142.08 MWD+IFR-AK-CAZ-SC 511086.52 MWD+IFR-AK-CAZ-SC 511032.23 MWD+IFR-AK-CAZ-SC 510976.73 MWD+IFR-AK-CAZ-SC 510920.55 MWD+IFR-AK-CAZ-SC 510868.81 MWD+IFR-AK-CAZ-SC 510811.38 MWD+IFR-AK-CAZ-SC 510751.94 MWD+IFR-AK-CAZ-SC 510688.87 MWD+IFR-AK-CAZ-SC 510624.73 MWD+IFR-AK-CAZ-SC 510562.64 MWD+IFR-AK-CAZ-SC 510537.29 PROJECTED to TD Halliburton Company Survey Report Company: Kerr MCGee Date: 2/16!2007 Time: 16:14:27 Page: 1 Field: OLIKTOK POINT Co-ordinate(NE) Reference: Well: Oliktok Point I-2, True North ~ Site: OLIKTOK POINT Vertical (TVD) Reference: Oliktok Point t-2 PB1: 53.6 I We1L• Oliktok Point I-2 Section (VS) Referen ce: Well (O.OON,O.OOE, 312.10Azi) Wellpath: Oliktok Point I-2 ___ -- - - Survey Calculation Method: Minimum Curvature Db: Oracle - - - -- Field: OLIKTOK POINT - - - - - --- Map System:US State Plane Coordinate System 1927 Map Zone: Alaska, Zone 4 Geo Datum: NAD27 (Clarke 1866) Coordinate System: Well Centre Sys Datum: Mean Sea Level Geomagnetic Model: bggm2006 Well: Oliktok Point I-2 Slot Name: Well Position: +N/-S -3.83 ft Northing : 6036577.31 ft Latitude: 70 30 40.023 N +E/-W -7.07 ft Easting : 516753.79 ft Longitude: 149 51 46.449 W Position Uncertainty: 0.00 ft Wellpath: Oliktok Point I-2 Drilled From: Oliktok Point I-2 P62 500292332600 Tie-on Depth: 9046.98 ft Current Datum: Oliktok Point I-2 PB1: Height 53.65 ft Above System Datum: Mean Sea Level Magnetic Data: 1/1/2007 Declination: 23.60 deg Field Strength: 57618 nT Mag Dip Angle: 80.94 deg Vertical Section: Depth From (TVD) +N/-S +E/-W Direction ft ft ft deg 41.45 0.00 0.00 312.10 Survey Program for Definitive Wellpath Date: 2/16/2007 Validated: No Version: 1 Actual From To Survey Toolcode Tool Name ft ft 96.00 326.00 Oliktok Point I-2 PBi Gyro (96 CB-GYRO-SS Camera based gyro single shot 418.47 4124.95 Oliktok Point I-2 PBi IIF R+MS MWD+IFR-AK-CAZ-SCMWD+IFR AK CAZ SCC 4229.11 9046.98 Oliktok Point I-2 PB2 IIF R+MS MWD+IFR-AK-CAZ-SCMWD+IFR AK CAZ SCC 9125.00 12673.90 Oliktok Point I-2 IIFR+M S+Sag MWD+IFR-AK-CAZ-SCMWD+IFR AK CAZ SCC Survey MD Inc! Azim TVD Sys:TVD N!S E/W MapN MapE Tool ft deg deg ft ft ft ft ft ft J 41.45 0.00 0.00 41.45 - -12.20 - 0.00 0.00 -- - 6036577.31 516753.79 - - - TIE LINE 96.00 0.07 344.94 96.00 42.35 0.03 -0.01 6036577.34 516753.79 CB-GYRO-SS 113.00 0.34 349.14 113.00 59.35 0.09 -0.02 6036577.40 516753.77 CB-GYRO-SS 202.00 1.02 316.00 201.99 148.34 0.92 -0.62 6036578.23 516753.17 CB-GYRO-SS 326.00 3.81 311.06 325.87 272.22 4.42 -4.49 6036581.72 516749.29 CB-GYRO-SS 418.47 5.83 312.90 418.01 364.36 9.64 -10.25 6036586.92 516743.52 MWD+IFR-AK-CAZ-SC 514.01 7.25 310.31 512.93 459.28 16.84 -18.40 6036594.10 516735.35 MWD+IFR-AK-CAZ-SC 604.55 11.31 304.55 602.26 548.61 25.58 -30.08 6036602.81 516723.66 MWD+IFR-AK-CAZ-SC 696.96 15.16 300.45 692.20 638.55 36.84 -47.97 6036614.04 516705.75 MWD+IFR-AK-CAZ-SC 787.18 17.41 300.32 778.80 725.15 49.64 -69.79 6036626.78 516683.90 MWD+IFR-AK-CAZ-SC 868.57 18.19 300.53 856.29 802.64 62.24 -91.24 6036639.33 516662.42 MWD+IFR-AK-CAZ-SC 957.08 21.68 299.86 939.49 885.84 77.40 -117.33 6036654.43 516636.30 MWD+IFR-AK-CAZ-SC 1049.68 24.71 299.53 1024.59 970.94 95.46 -149.01 6036672.42 516604.58 MWD+IFR-AK-CAZ-SC 1144.90 29.56 298.03 1109.31 1055.66 116.32 -187.08 6036693.19 516566.47 MWD+IFR-AK-CAZ-SC 1238.10 35.22 295.20 1187.98 1134.33 138.58 -231.73 6036715.35 516521.77 MWD+IFR-AK-CAZ-SC 1332.76 37.74 297.84 1264.09 1210.44 163.74 -282.06 6036740.39 516471.40 MWD+IFR-AK-CAZ-SC 1429.59 40.33 300.76 1339.30 1285.65 193.61 -335.20 6036770.14 516418.19 MWD+IFR-AK-CAZ-SC 1523.70 41.02 300.90 1410.68 1357.03 225.05 -387.87 6036801.46 516365.46 MWD+IFR-AK-CAZ-SC 1597.12 41.51 301.26 1465.87 1412.22 250.05 -429.34 6036826.36 516323.93 MWD+IFR-AK-CAZ-SC 1713.22 38.52 301.21 1554.77 1501.12 288.75 -493.16 6036864.92 516260.03 MWD+IFR-AK-CAZ-SC 1807,39 41.56 300.15 1626.86 1573.21 319.65 -545.27 6036895.69 516207.86 MWD+IFR-AK-CAZ-SC 1900.47 44.50 299.51 1694.90 1641.25 351.23 -600.37 6036927.14 516152.70 MWD+IFR-AK-CAZ-SC 1995.48 49.22 298.79 1759.84 1706.19 384.97 -660.90 6036960.75 516092.09 MWD+IFR-AK-CAZ-SC 2090.77 59.40 299.02 1815.36 1761.71 422.34 -728.56 6036997.96 516024.35 MWD+IFR-AK-CAZ-SC 2180.81 64.25 300.78 1857.87 1804.22 461.92 -797.33 6037037.38 515955.50 MWD+IFR-AK-CAZ-SC 2280.81 63.37 302.15 1902.00 1848.35 508.75 -873.87 6037084.03 515878.87 MWD+IFR-AK-CAZ-SC 2375.52 64.55 302.74 1943.58 1889.93 554.40 -945.68 6037129.52 515806.96 MWD+IFR-AK-CAZ-SC Halliburton Company Survey Report Company: Kerr McGee Date: 2/16/2007 Time: 16:1427 __ __ Page: 2 Field: OL IKTOK POIN T Co-ordinate(NE) Re ference: W ell: Oliktok Point I-2, True North Site: OL IKTOK POIN T Vertical (TVD) Refe rence: Ol iktok Point I-2 P 61: 53.6 Well: Oli ktok Point I-2 Section (VS) Referen ce: W ell (O.OON,O.OOE ,312.10Azi) ~Vellpath: Oli ktok Point I-2 Survey Calculation Method: Mi nimum Curvatur e Db: Oracle Survey NID Licl Azi~n TVD Sys TVD N/5 E/W MapN b1apE Tool ft deg deg fl ft ft ft ft ft 2469.70 64.95 303.06 1983.76 1930.11 600.67 -1017.20 6037175.62 515735.35 MWD+IFR-AK-CAZ-SC 2510.28 64.51 303.72 2001.08 1947.43 620.87 -1047.84 6037195.75 515704.66 MWD+IFR-AK-CAZ-SC 2612.88 64.28 303.92 2045.42 1991.77 672.36 -1124.71 6037247.06 515627.69 MWD+IFR-AK-CAZ-SC 2706.83 60.97 303.45 2088.61 2034.96 718.63 -1194.11 6037293.17 515558.18 MWD+IFR-AK-CAZ-SC 2801.57 61.61 303.76 2134.12 2080.47 764.62 -1263.32 6037339.00 515488.88 MWD+IFR-AK-CAZ-SC 2896.10 62.22 304.39 2178.63 2124.98 811.35 -1332.40 6037385.57 515419.70 MWD+IFR-AK-CAZ-SC 2990.18 61.72 304.75 2222.84 2169.19 858.47 -1400.78 6037432.53 515351.22 MWD+IFR-AK-CAZ-SC 3085.07 63.44 304.83 2266.53 2212.88 906.53 -1469.95 6037480.43 515281.95 MWD+IFR-AK-CAZ-SC 3178.93 65.83 305.28 2306.74 2253.09 955.24 -1539.37 6037528.98 515212.43 MWD+IFR-AK-CAZ-SC 3273.56 67.83 306.00 2343.97 2290.32 1005.93 -1610.06 6037579.50 515141.62 MWD+iFR-AK-CAZ-SC 3369.65 65.03 306.03 2382.39 2328.74 1057.71 -1681.30 6037631.12 515070.28 MWD+IFR-AK-CAZ-SC 3463.61 63.39 306.11 2423.27 2369.62 1107.52 -1749.68 6037680.77 515001.80 MWD+IFR-AK-CAZ-SC 3558.17 64.93 305.17 2464.48 2410.83 1157.11 -1818.84 6037730.19 514932.53 MWD+IFR-AK-CAZ-SC 3654.05 64.08 305.05 2505.75 2452.10 1206.88 -1889.64 6037779.80 514861.63 MWD+IFR-AK-CAZ-SC 3748.20 63.70 304.87 2547.19 2493.54 1255.32 -1958.92 6037828.08 514792.24 MWD+IFR-AK-CAZ-SC 3842.28 64.16 305.16 2588.53 2534.88 1303.81 -2028.14 6037876.41 514722.92 MWD+IFR-AK-CAZ-SC 3936.91 63.70 303.59 2630.12 2576.47 1351.81 -2098.29 6037924.24 514652.67 MWD+IFR-AK-CAZ-SC 4031.54 63.17 302.14 2672.44 2618.79 1397.74 -2169.38 6037970.01 514581.49 MWD+IFR-AK-CAZ-SC 4124.95 62.30 302.17 2715.23 2661.58 1441.93 -2239.67 6038014.03 514511.10 MWD+IFR-AK-CAZ-SC 4229.11 61.50 301.90 2764.29 2710.64 1490.67 -2317.56 6038062.59 514433.11 MWD+IFR-AK-CAZ-SC 4291.63 61.46 302.25 2794.15 2740.50 1519.84 -2364.11 6038091.66 514386.50 MWD+IFR-AK-CAZ-SC 4328.44 61.41 302.57 2811.75 2758.10 1537.16 -2391.40 6038108.92 514359.17 MWD+IFR-AK-CAZ-SC 4398.49 63.64 302.87 2844.06 2790.41 1570.76 -2443.69 6038142.39 514306.81 MWD+IFR-AK-CAZ-SC 4424.86 64.75 303.01 2855.54 2801.89 1583.67 -2463.61 6038155.25 514286.86 MWD+IFR-AK-CAZ-SC 4477.49 65.65 302.66 2877.62 2823.97 1609.57 -2503.75 6038181.07 514246.67 MWD+IFR-AK-CAZ-SC 4516.91 66.07 302.86 2893.74 2840.09 1629.04 -2534.01 6038200.46 514216.37 MWD+IFR-AK-CAZ-SC 4611.49 64.47 303.82 2933.30 2879.65 1676.24 -2605.77 6038247.50 514144.51 MWD+IFR-AK-CAZ-SC 4706.88 64.38 303.26 2974.48 2920.83 1723.79 -2677.49 6038294.88 514072.69 MWD+IFR-AK-CAZ-SC 4800.70 65.46 304.02 3014.25 2960.60 1770.86 -2748.23 6038341.79 514001.85 MWD+IFR-AK-CAZ-SC 4895.84 65.44 303.41 3053.78 3000.13 1818.89 -2820.21 6038389.65 513929.77 MWD+IFR-AK-CAZ-SC 4990.88 67.99 303.62 3091.35 3037.70 1867.09 -2892.99 6038437.68 513856.89 MWD+IFR-AK-CAZ-SC 5086.65 67.65 303.36 3127.50 3073.85 1916.03 -2966.95 6038486.45 513782.82 MWD+IFR-AK-CAZ-SC 5181.83 65.07 303.00 3165.67 3112.02 1963.75 -3039.92 6038533.99 513709.76 MWD+IFR-AK-CAZ-SC 5276.30 65.23 304.07 3205.37 3151.72 2011.10 -3111.37 6038581.18 513638.20 MWD+IFR-AK-CAZ-SC 5371.72 68.52 304.87 3242.84 3189.19 2060.77 -3183.70 6038630.68 513565.77 MWD+IFR-AK-CAZ-SC 5466.73 68.24 305.38 3277.85 3224.20 2111.59 -3255.94 6038681.33 513493.42 MWD+IFR-AK-CAZ-SC 5560.13 67.61 304.91 3312.95 3259.30 2161.41 -3326.72 6038730.99 513422.54 MWD+IFR-AK-CAZ-SC 5654.13 66.47 305.26 3349.61 3295.96 2211.16 -3397.54 6038780.57 513351.61 MWD+IFR-AK-CAZ-SC 5749.24 66.91 305.67 3387.25 3333.60 2261.84 -3468.68 6038831.09 513280.36 MWD+IFR-AK-CAZ-SC 5843.47 71.64 305.53 3420.59 3366.94 2313.13 -3540.33 6038882.21 513208.61 MWD+IFR-AK-CAZ-SC 5937.92 71.07 305.38 3450.78 3397.13 2365.04 -3613.22 6038933.95 513135.61 MWD+IFR-AK-CAZ-SC 6032.85 72.30 304.35 3480.61 3426.96 2416.55 -3687.17 6038985.29 513061.55 MWD+IFR-AK-CAZ-SC 6127.29 74.48 303.75 3507.61 3453.96 2467.22 -3762.15 6039035.78 512986.47 MWD+IFR-AK-CAZ-SC I 6221.47 78.65 304.21 3529.49 3475.84 2518.40 -3838.09 6039086.80 512910.42 MWD+IFR-AK-CAZ-SC 6315.11 82.15 305.04 3545.10 3491.45 2570.86 -3914.05 6039139.08 512834.35 MWD+IFR-AK-CAZ-SC 6411.17 85.51 305.80 3555.42 3501.77 2626.20 -3991.87 6039194.24 512756.41 MWD+IFR-AK-CAZ-SC 6504.67 85.22 305.09 3562.98 3509.33 2680.25 -4067.79 6039248.11 512680.38 MWD+IFR-AK-CAZ-SC 6598.00 85.88 305.29 3570.22 3516.57 2733.87 -4143.83 6039301.55 512604.22 MWD+IFR-AK-CAZ-SC 6667.85 84.16 304.68 3576.28 3522.63 2773.77 -4200.84 6039341.32 512547.13 MWD+{FR-AK-CAZ-SC 6764.60 86.71 308.02 3583.99 3530.34 2830.92 -4278.50 6039398.29 512469.35 MWD+IFR-AK-CAZ-SC 6859.91 89.80 310.18 3586.89 3533.24 2891.00 -4352.41 6039458.19 512395.31 MWD+IFR-AK-CAZ-SC 6952.42 93.82 313.03 3583.97 3530.32 2952.37 -4421.53 6039519.40 512326.06 MWD+IFR-AK-CAZ-SC 7046.28 90.72 314.24 3580.25 3526.60 3017.08 -4489.40 6039583.95 512258.05 MWD+IFR-AK-CAZ-SC Halliburton Company Survey Report Company: Kerr McGee Date: 2/16/2007 Time: 16:1427 Page: 3 Field: OL IKTOK POIN T Co-ord inate(IV`E) Reference: Well: Oliktok Point I -2, True North Site: OLIKTOK POIN T Vertical (TVDj Refe rence: Oli ktok Point 1-2 PBi :53.6 «'ell: Oli ktok Point I-2 Section (VS) Referen ce: Wefl (O.OON,O.OOE,312.10Azi) L Wellpath: Oli _ - ktok Point I-2 - _ __ Survey - Calculation Method: Mi - _ _ nimum Curvature - Db: Oracle _ - _ I Survey -_ J9D Incl Azim TVD Sys TVD N/S F/W MapN MapE Tool I ft deg deg ft ft ft ft ft ft 7143.76 88.68 311.31 3580.76 3527.11 3083.27 -4560.94 6039649.97 512186.37 MWD+{FR-AK-CAZ-SC 7237.95 88.06 309.10 3583.44 3529.79 3144.04 -4632.84 6039710.58 512114.33 MWD+IFR-AK-CAZ-SC 7335.17 87.20 309.63 3587.46 3533.81 3205.65 -4707.94 6039772.01 512039.11 MWD+IFR-AK-CAZ-SC 7424.98 88.43 313.00 3590.88 3537.23 3264.89 -4775.33 6039831.09 511971.58 MWD+IFR-AK-CAZ-SC 7522.25 92.14 316.71 3590.40 3536.75 3333.47 -4844.26 6039899.51 511902.51 MWD+IFR-AK-CAZ-SC 7618.32 91.95 319.16 3586.97 3533.32 3404.74 -4908.58 6039970.63 511838.03 MWD+IFR-AK-CAZ-SC 7713.21 89.24 319.86 3585.99 3532.34 3476.90 -4970.19 6040042.64 511776.27 MWD+IFR-AK-CAZ-SC 7808.93 90.47 317.71 3586.23 3532.58 3548.90 -5033.25 6040114.49 511713.05 MWD+IFR-AK-CAZ-SC 7902.45 90.47 319.63 3585.46 3531.81 3619.12 -5095.00 6040184.56 511651.15 MWD+IFR-AK-CAZ-SC 7996.99 91.21 322.01 3584.08 3530.43 3692.39 -5154.72 6040257.69 511591.27 MWD+IFR-AK-CAZ-SC 8092.69 91.28 322.07 3582.00 3528.35 3767.82 -5213.57 6040332.98 511532.26 MWD+IFR-AK-CAZ-SC 8189.25 91.28 324.24 3579.84 3526.19 3845.07 -5271.46 6040410.10 511474.20 MWD+IFR-AK-CAZ-SC 8285.20 91.59 325.13 3577.44 3523.79 3923.34 -5326.91 6040488.23 511418.58 MWD+IFR-AK-CAZ-SC 8379.69 90.29 325.27 3575.89 3522.24 4000.92 -5380.82 6040565.68 511364.50 MWD+IFR-AK-CAZ-SC 8471.55 89.30 324.14 3576.21 3522.56 4075.89 -5433.90 6040640.52 511311.26 MWD+IFR-AK-CAZ-SC 8564.45 90.17 323.54 3576.64 3522.99 4150.89 -5488.71 6040715.40 511256.28 MWD+IFR-AK-CAZ-SC 8655.61 87.38 323.50 3578.59 3524.94 4224.17 -5542.89 6040788.54 511201.94 MWD+IFR-AK-CAZ-SC 8758.01 85.41 325.03 3585.03 3531.38 4307.12 -5602.57 6040871.35 511142.08 MWD+IFR-AK-CAZ-SC 8855.27 89.86 325.46 3589.04 3535.39 4386.94 -5657.96 6040951.03 511086.52 MWD+IFR-AK-CAZ-SC 8950.66 88.13 325.39 3590.72 3537.07 4465.47 -5712.08 6041029.43 511032.23 MWD+IFR-AK-CAZ-SC 9046.98 90.78 324.48 3591.63 3537.98 4544.29 -5767.41 6041108.13 510976.73 MWD+IFR-AK-CAZ-SC 9125.00 93.37 323.61 3588.81 3535.16 4607.40 -5813.18 6041171.12 510930.81 MWD+IFR-AK-CAZ-SC 9142.89 90.74 324.06 3588.17 3534.52 4621.83 -5823.73 6041185.53 510920.23 MWD+IFR-AK-CAZ-SC 9238.33 88.13 321.46 3589.11 3535.46 4697.80 -5881.48 6041261.36 510862.32 MWD+IFR-AK-GAZ-SC 9334.43 86.27 320.15 3593.80 3540.15 4772.18 -5942.13 6041335.60 510801.51 MWD+IFR-AK-CAZ-SC 9430.13 83.74 319.74 3602.13 3548.48 4845.15 -6003.48 6041408.42 510740.00 MWD+IFR-AK-CAZ-SC 9521.58 87.57 319.26 3609.06 3555.41 4914.47 -6062.69 6041477.60 510680.64 MWD+IFR-AK-CAZ-SC 9615.24 88.93 319.73 3611.92 3558.27 4985.65 -6123.49 6041548.64 510619.69 MWD+IFR-AK-CAZ-SC 9709.91 90.17 318.63 3612.67 3559.02 5057.29 -6185.37 6041620.13 510557.65 MWD+IFR-AK-CAZ-SC 9804.42 90.10 318.49 3612.44 3558.79 5128.14 -6247.92 6041690.83 510494.95 MWD+IFR-AK-CAZ-SC 9898.86 90.16 319.18 3612.23 3558.58 5199.24 -6310.08 6041761.78 510432.63 MWD+IFR-AK-CAZ-SC 9993.69 92.14 319.95 3610.33 3556.68 5271.40 -6371.57 6041833.79 510370.98 MWD+IFR-AK-CAZ-SC 10089.57 90.78 321.22 3607.88 3554.23 5345.44 -6432.43 6041907.69 510309.97 MWD+IFR-AK-CAZ-SC 10185.94 89.86 324.41 3607.34 3553.69 5422.21 -6490.66 6041984.32 510251.57 MWD+IFR-AK-CAZ-SC 10281.25 88.74 324.05 3608.51 3554.86 5499.53 -6546.37 6042061.51 510195.69 MWD+IFR-AK-CAZ-SC 10374.96 90.04 320.84 3609.51 3555.86 5573.81 -6603.48 6042135.65 510138.42 MWD+IFR-AK-CAZ-SC 10471.74 88.81 320.31 3610.48 3556.83 5648.56 -6664.93 6042210.26 510076.80 MWD+IFR-AK-CAZ-SC 10566.61 88.99 317.47 3612.30 3558.65 5720.02 -6727.29 6042281.57 510014.29 MWD+IFR-AK-CAZ-SC 10662.29 86.27 316.27 3616.26 3562.61 5789.78 -6792.64 6042351.17 509948.79 MWD+IFR-AK-CAZ-SC 10753.48 89.61 314.35 3619.53 3565.88 5854.55 -6856.72 6042415.80 509884.57 MWD+IFR-AK-CAZ-SC 10842.95 94.43 314.25 3616.38 3562.73 5916.98 -6920.69 6042478.08 509820.46 MWD+IFR-AK-CAZ-SC 10943.80 93.99 317.08 3608.98 3555.33 5988.92 -6990.98 6042549.84 509750.03 MWD+IFR-AK-CAZ-SC 11038.69 91.03 318.88 3604.82 3551.17 6059.33 -7054.42 6042620.11 509686.43 MWD+IFR-AK-CAZ-SC 11136.87 89.86 320.97 3604.06 3550.41 6134.45 -7117.62 6042695.08 509623.06 MWD+IFR-AK-CAZ-SC 11229.58 90.29 321.55 3603.94 3550.29 6206.77 -7175.64 6042767.25 509564.89 MWD+IFR-AK-CAZ-SC 11321.78 90.10 320.96 3603.62 3549.97 6278.68 -7233.34 6042839.03 509507.03 MWD+IFR-AK-CAZ-SC 11414.85 90.72 320.44 3602.96 3549.31 6350.70 -7292.29 6042910.90 509447.93 MWD+IFR-AK-CAZ-SC 11508.54 91.27 317.72 3601.33 3547.68 6421.47 -7353.64 6042981.54 509386.42 MWD+IFR-AK-CAZ-SC 11592.96 91.65 318.61 3599.18 3545.53 6484.35 -7409.93 6043044.28 509330.00 MWD+IFR-AK-CAZ-SC 11693.44 90.23 320.72 3597.53 3543.88 6560.93 -7474.95 6043120.70 509264.81 MWD+IFR-AK-CAZ-SC 11792.19 89.49 322.07 3597.77 3544.12 6638.09 -7536.56 6043197.72 509203.03 MWD+IFR-AK-CAZ-SC 11881.94 89.05 322.21 3598.91 3545.26 6708.95 -7591.64 6043268.44 509147.80 MWD+IFR-AK-CAZ-SC Halliburton Company Survey Report - - - _- -- ~~Company: Kerr McGee Date: 2/16/2007 Time: 16:14:27 Page: 4 Field: OLIKTOK POIN T Co-ordinate(NC) Reference: W ell: Oliktok Point I -2, True North Site: OLIKTOK POIN T Vertical (TVD) Refe rence: Ol iktok Point I-2 PB 1: 53.6 i Well: Oliktok Point I-2 Section (VS) Reference: W ell (O.OON,O.OOE,312.10Azi) Wellpath: Oliktok Point I-2 Survev Calculation Method: Mi -- nimum Curvature - - Db: Oracle Sur~ev MD incl Azim TVD Sys TYD N/S E/W MapN MapF. Tool ft deg deg ft ft ft ft ft ft 11983.44 90.16 322.11 3599.61 3545.96 6789.10 -7653.91 6043348.45 509085.36 MWD+IFR-AK-CAZ-SC 12078.32 89.92 321.45 3599.55 3545.90 6863.64 -7712.61 6043422.85 509026.50 MWD+IFR-AK-CAZ-SC 12172.82 90.29 319.69 3599.37 3545.72 6936.63 -7772.62 6043495.70 508966.32 MWD+IFR-AK-CAZ-SC 12267.75 89.73 318.43 3599.36 3545.71 7008.34 -7834.83 6043567.26 508903.96 MWD+IFR-AK-CAZ-SC 12364.31 90.10 318.12 3599.50 3545.85 7080.41 -7899.09 6043639.17 508839.54 MWD+IFR-AK-CAZ-SC 12459.83 89.61 318.37 3599.74 3546.09 7151.66 -7962.70 6043710.28 508775.77 MWD+IFR-AK-CAZ-SC 12556.39 89.98 319.02 3600.09 3546.44 7224.20 -8026.44 6043782.66 508711.88 MWD+IFR-AK-CAZ-SC 12673.90 90.41 320.85 3599.69 3546.04 7314.13 -8102.07 6043872.41 508636.05 MWD+IFR-AK-CAZ-SC 12711.00 90.41 320.85 3599.42 3545.77 7342.90 -8125.49 6043901.12 508612.57 PROJECTED to TD WELL DETAILS: wp12 CASING DETAILS TARGET DETAILS Well CooM(reles 1220 No TVD MU Name S¢e Name NG +N/-S +E/-W Northing Easnny NORhr1g ASP Eestlrp ASP LBiltutle Lorgkuoe t 3575.84 6729.78 7-SB" 7-58 Oliktok POint I~2 PBt Tt ver2 357601 280659 -0258.91 603537400 512489 OG Circle (Ratlius 250 OG'. 6038577.31 516753.79 70°3040.023N 149°51'46.449W 2 3673.19 12734.03 472" 412 Ol:ktak Pomt I-2 T2 3673 2-. 7385 80 43128 97 6043948 00 508609 00 Pant Oliktok Pomr I~2 P81 T1 368E 21 2806.59 -0258.91 6039374 00 512489.00 Grcle (Raoius. 250 v-0~ V.Segial Origin Origin Starting 3ozA`(876~ o S o- W ~ Ff of rt DDI =7 06 a O a a o oo . SE CTION DETAILS MG Inc Aa ND +N/-S +FJ-W DLeg TFace VSec 'arget 4500 01 64.30 302.00 2871.18 1625.78 -2526.81 000 0.00 3006 i 4 6559 26 65.95 303.88 2896.1 t 1655.01 -2572.01 400 46 46 3058 .16 H A L L I B U R TO N 5853 34 65.95 303.88 3423.58 2313.84 -3553.02 0.00 0 00 4239 96 ( ' 6330 45 85.00 305.00 3542 71 2574.01 -3932.04 4.00 3 d0 4695 46 ~ ~ 5 663246 85.00 305.00 3569.03 2746.58 4176.51 0.00 0.00 500012 \ Sperry Drilling Services 6 6733.07 87.05 308.47 3576.01 2806.59 4258.91 4.00 59.54 5100 21 O'ik:ok Pc, nt I ~ PB- Tt .e'. 7 6753 07 BI 05 308.47 3577.04 2819.02 -4274.55 0.00 0.00 5120 09 K lVr'G 6 7049 39 8813 320.15 3566 95 3025.54 -0466.08 4.00 80.11 5409 72 err ee 9 12734.89 89.73 320.15 3673.21 7389.80 -6128.97 0.00 0.00 10834.76 giMOk Pant I-21: LEGEND -0- giktok Point F2, OP I-2 Rip Surveys seo to PB2, OP I-2 Rlg Sunreyc VO gik[ok Pant F2, OP I-2 PB2 Rip Surveys MWD+IIFR+MS, OP I-2 PB2 Wg Surveys MWD+IIFR+MS VO gik[ok Pant F2, OP I-2 PB7 Rip Surveys MWD+IIFR+MS, OP I-2 P81 Pop Surveys VO giktok Pant F2, Plen gIMOk Point I-2 P81, Oliktok Pant I-2 P81 (wp10) V2 c ~_ 0 0 t d 0 V C 7 F Oliktok Point F2Avp12 Oliktok Point F2/OP F2 a•in" -' ocau~ \ Oliktok Point 42/OP I-2 PB2 ~ ,, , p 5000 - ~ Oliklok Point F2/Oliktok Point F2 PBt (wp10) N + O'(iktok Point F2/OP I-2 PBt t 3750 C O Z ~7 5/8" - t 2500 ~ (n 1250 0 Vertical Section at 302.76° (2200 ft/in) 8800 West(-)!East(+) (2500 ft/in) Oliktok Point F2Avpt2 , Oliktok Point F2/Oliktok Point F2 PB7 (wp10) Oliktok Point F2/OP I-2 Rig Surveys 0 K err McG D ee Oliktok Point I-2 ays -vs- Depth 1000 2000 3000 4000 5000 t 6000 ~ d ~ 7000 L ~ 8000 9000 10000 11000 12000 13000 1 0 40 0 0 5 10 15 20 25 30 35 Rig Days This chart covers the original hole, Oliktok point I-2 PB1, the "'°`"" ~-~ 13 ' ... - „ kdela sidetrack designated Oliktok point I-2 P62 and the final hole Oliktok point I-2. The original hole was sidetracked after drilling a pilot hole to 6715' MD / 3702 TVD. The well was cemented back and kick-off attained at 4279'. Directional -- drilling of the 6 3/4" lateral continued from 9576' to 9747, TVD of 3504', when it was decided to side track again due to - "' ~ ~ 3id'~-eas~rtg ~t 2 `~ l 2n2~ lateral going off course (i.e. out of the pay zone). An open " '~ hole sidetrack was finally attained at a measured depth of ' _ _, 9175', 3586' TVD. The lateral continued to a final total depth v ~_ ." _ ,,,, ,, of 12711' MD / 3599' ND and was designated Oliktok Point I- _~,,,_, Drill 9 7/8" Hole Piug back & ick off at 4279' - n _ L~Illl 7/8" Hale to 67,0 ' DdD fib TVD ._ _ et 7 51~~asing f 6695' MD 7357 TVD _ . _ ~..,.. _ Pii'of ltibies "t~" 5 MD I _ . ~70~' Tfil6___: __ __ __ ~_ rill IatefaLQ_3/4",h ,le to 9747 _ .. _. Open atE Sideir~k,91 ..~., __ ,v ' _. ~' .. __ D / 35Il4' X1111: VD .out of 358G ._ aoae tk>arefgre bade t-0 ._. _ . _.. _ _...: open gale ... _ ._7_~.~f __ _ Dill 6 314'{ lateral _. _ _ Run 3 1/Z" slotfe liner - ,. ~ _. .r. n_ . ~ .. __~ .. ~ To I Depth 42711' idl ; 3599'.T1f{3 _ _ ___,.1._ _ . w- ~'~I l<Pr~NtGee OLIKTOK POINT I-2 API # 50-23326-00-70 DATA C D _ , ., a ~' Sperry Drilling Services ~~ f(~r~NtGee OLIKTOK POINT I-2 API # 50-23326-00-70 FORMATION EVALUATION ~ ~ -- Y .: j ~ ., Sperry Drilling Services ~I 'CerrNtGee OLIKTOK POINT I-2 API # 50-23326-00-70 FORMATION EVALUATION Continued Sperry Drilling Services ~>> ~ ~_ OLIKTOK POINT I-2 API # 5023326-00-70 ~11~ SHOW LOGS: 1:~ Sperry Drilling Services ~~ i.„~,tiA -~~ :' , .. ~~ ,~ ~' v ~, .'~~ OLIKTOK POINT I-2 API # 5023326-00-70 1:600 ENGINEERING LOG Sperry Drilling Services
