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211-043
STATE OF ALASKA OIL AND GAS CONSERVATION COMMISSION BOPE Test Report for: Reviewed By: P.I. Suprv Comm ________KENAI LOOP 1-1 JBR 11/14/2025 MISC. INSPECTIONS: FLOOR SAFTY VALVES:CHOKE MANIFOLD:BOP STACK: ACCUMULATOR SYSTEM:MUD SYSTEM: P/F P/F P/FP/FP/F Visual Alarm QuantityQuantity Time/Pressure SizeQuantity Number of Failures:1 TJ Used 1-1/2" Coil. Had a failure on Inner reel, serviced, still fail and had to swap out. Was not there for final witness on inner reel valve done on 09/30/25 (it passed this test; graph sent to Jim). Accumulator bottle pre charge 4 bottles at 1250 psi. Had lots of issues getting the inner reel valve tested, triplex pump kept bleeding back and took hours to figure out. Test fluid was also Methanol. Test Results TEST DATA Rig Rep:Buddy MarshellOperator:AIX Energy LLC Operator Rep:Kip Taeschner Rig Owner/Rig No.:Fox 9 PTD#:2110430 DATE:9/29/2025 Type Operation:WRKOV Annular: Type Test:INIT Valves: 250/2500 Rams: 250/2500 Test Pressures:Inspection No:bopKPS250930115906 Inspector Kam StJohn Inspector Insp Source Related Insp No: INSIDE REEL VALVES: Quantity P/F (Valid for Coil Rigs Only) Remarks: Test Time 7 MASP: 1480 Sundry No: 325-542 Control System Response Time (sec) Time P/F Housekeeping:P PTD On Location P Standing Order Posted P Well Sign P Hazard Sec.P Test Fluid O Misc NA Upper Kelly 0 NA Lower Kelly 0 NA Ball Type 0 NA Inside BOP 0 NA FSV Misc 0 NA 5 PNo. Valves 2 PManual Chokes 0 NAHydraulic Chokes 0 NACH Misc Stripper 1 1.5"P Annular Preventer 0 NA #1 Rams 1 1.5" Blind/Sh P #2 Rams 1 1.5" Pipe/Slip P #3 Rams 0 NA #4 Rams 0 NA #5 Rams 0 NA #6 Rams 0 NA Choke Ln. Valves 2 2"P HCR Valves 0 NA Kill Line Valves 2 2"P Check Valve 0 NA BOP Misc 0 NA System Pressure P2950 Pressure After Closure P2500 200 PSI Attained P3 Full Pressure Attained P40 Blind Switch Covers:PAll Stations Bottle precharge P Nitgn Btls# &psi (avg)NA0 ACC Misc NA0 NA NATrip Tank NA NAPit Level Indicators NA NAFlow Indicator NA NAMeth Gas Detector NA NAH2S Gas Detector NA NAMS Misc Inside Reel Valves 1 F Annular Preventer NA0 #1 Rams P13 #2 Rams P13 #3 Rams NA0 #4 Rams NA0 #5 Rams NA0 #6 Rams NA0 HCR Choke NA0 HCR Kill NA0 Screenshots of start/stop for low and high pressure tests for Inner Reel Valve retest attached -- J. Regg Kenai Loop 1-1 BOPE Inner Reel Valve Retest – 9/29/2025 Page 1 of 2 BOPE Test – Fox CTU 9 Kenai Loop 1-1 (PTD 2110430) Inside Reel Valve Retest AOGCC Insp Rpt # bopKPS250930115906 9/29/2025 Low Pressure Test Start End Kenai Loop 1-1 BOPE Inner Reel Valve Retest – 9/29/2025 Page 2 of 2 High Pressure Test Start End 325-542 By Grace Christianson at 12:26 pm, Sep 03, 2025 DSR-9/9/25BJM 9/4/25 X 1480 psi. See attached email from Randy Bates. -bjm10,680' SFD SFD 9/4/2025 10,667' SFD CT BOP test to 2500 psi 10-404 50-133-20595-00-00 SFD *&: Jessie L. Chmielowski Digitally signed by Jessie L. Chmielowski Date: 2025.09.10 11:17:07 -08'00'09/10/25 RBDMS JSB 091125 From:McLellan, Bryan J (CED) To:Ronnie Nutt Subject:RE: Kenai Loop #1-1 (PTD 211-043) Sundry approval for workover operations Date:Monday, August 16, 2021 5:50:00 PM Ronnie, You have approval to move forward with the CT N2 lift operation as part of Sundry 321-086 with the following conditions: 1. BOP test to 2000 psi. Provide 24 hrs notice for AOGCC to witness BOP test. 2. Have a thorough pre-job safety meeting with the service companies on site to discuss the N2 asphyxiation hazards and review the below standard N2 procedures. This procedure was copied from a Hilcorp Sundry application (public record) and was a result of an incident where several people were nearly killed by N2 asphyxiation on the north slope. The yellow highlighted steps are conditions of this approval. The remaining steps are good procedure and recommended. 1.) MIRU Nitrogen Pumping Unit and Liquid Nitrogen Transport. 2.) Notify Pad Operator of upcoming Nitrogen operations. 3.) Perform Pre-Job Safety Meeting. Review Nitrogen vendor standard operating procedures and appropriate Safety Data Sheets (formerly MSDS). 4.) Document hazards and mitigation measures and confirm flow paths. Include review on asphyxiation caused by nitrogen displacing oxygen. Mitigation measures include appropriate routing of flowlines, adequate venting and atmospheric monitoring. 5.) Spot Pumping Unit and Transport. Confirm liquid N2 volumes in transport. 6.) Rig up lines from the Nitrogen Pumping Unit to the well and returns tank. Secure lines with whip checks. 7.) Place signs and placards warning of high pressure and nitrogen operations at areas where Nitrogen may accumulate or be released. 8.) Place pressure gauges downstream of liquid and nitrogen pumps to adequately measure tubing and casing pressures. 9.) Place pressure gauges upstream and downstream of any check valves. 10.) Wellsite Manager shall walk down valve alignments and ensure valve position is correct. 11.) Ensure portable 4-gas detection equipment is onsite, calibrated, and bump tested properly to detect LEL/H2S/CO2/O2 levels. Ensure Nitrogen vendor has a working and calibrated detector as well that measures O2 levels. 12.) Pressure test lines upstream of well to approved sundry pressure or MPSP (Maximum Potential Surface Pressure), whichever is higher. Test lines downstream of well (from well to returns tank) to 1,500 psi. Perform visual inspection for any leaks. 13.) Bleed off test pressure and prepare for pumping nitrogen. 14.) Pump nitrogen at desired rate, monitoring rate (SCFM) and pressure (PSI). All nitrogen returns are to be routed to the returns tank. 15.) When final nitrogen volume has been achieved, isolate well from Nitrogen Pumping Unit and bleed down lines between well and Nitrogen Pumping Unit. 16.) Once you have confirmed lines are bled down, no trapped pressure exists, and no nitrogen has accumulated begin rig down of lines from the Nitrogen Pumping Unit. 17.) Finalize job log and discuss operations with Wellsite Manager. Document any lessons learned and confirm final rates/pressure/volumes of the job and remaining nitrogen in the transport. 18.) RDMO Nitrogen Pumping Unit and Liquid Nitrogen Transport. Regards Bryan McLellan Senior Petroleum Engineer Alaska Oil & Gas Conservation Commission 333 W 7th Ave Anchorage, AK 99501 Bryan.mclellan@alaska.gov +1 (907) 250-9193 From: Ronnie Nutt <rnutt@brantaep.com> Sent: Monday, August 16, 2021 5:23 PM To: McLellan, Bryan J (CED) <bryan.mclellan@alaska.gov>; Ronnie Nutt <rnutt@brantaep.com> Subject: Fwd: Kenai Loop #1-1 (PTD 211-043) Sundry approval for workover operations My apologies. Forgot to attach Ronnie 4:47 sell LTE • 3 of 3 W b"C" to I IClCtlo� hud U Ronald C. Nutt Chief Operating Officer 2441 High Timbers Suite 120 The Woodlands, Texas 77380 281.863.9935. Office 713.562.3318. Mobile rnutt@brantaep.com Begin forwarded message: From: Ronnie Nutt <rnutt@brantaep.com> Date: August 16, 2021 at 8:19:57 PM CDT To: Bryan McLellan <bryan.mclellan@alaska.gov> Subject: Fwd: Kenai Loop #1-1 (PTD 211-043) Sundry approval for workover operations As requested please find attached the BOP schematic for the coil tubing unit. It should be in place to start operations on Wednesday. Hopefully only one day required. Let me know if you need anything else. Ronnie Ronald C. Nutt Chief Operating Officer 2441 High Timbers Suite 120 The Woodlands, Texas 77380 281.863.9935. Office 713.562.3318. Mobile rnutt@brantaep.com Begin forwarded message: From: Ronnie Nutt <rnutt@brantaep.com> Date: August 16, 2021 at 12:17:22 PM CDT To: "McLellan, Bryan J (CED)" <bryan.mclellan@alaska.gov> Cc: "Regg, James B (CED)" <jim.regg@alaska.gov>, Randy Bates <rbates@brantaep.com>, Fred Tresca <fmttx@me.com>, Clayton King <cking@brantaep.com>, "Elena Romerdahl (ERomerdahl@perkinscoie.com)" <ERomerdahl@perkinscoie.com>, Wendy Sheasby <wsheasby@brantaep.com> Subject: Re: Kenai Loop #1-1 (PTD 211-043) Sundry approval for workover operations Bryan I just left you a voicemail. We have completed our work with the completion unit and the SSSV has been replaced. Unfortunately, we are unsuccessful in getting the well to flow using a swabbing unit and will need to rig up a coil tubing unit to jet the well in. This step was not anticipated on our original sundry notice. Please give me a call to discuss. Thanks Ronnie Ronald C. Nutt Chief Operating Officer 2441 High Timbers Suite 120 The Woodlands, Texas 77380 281.863.9935. Office 713.562.3318. Mobile rnutt@brantaep.com On Aug 6, 2021, at 2:18 PM, McLellan, Bryan J (CED) <bryan.mclellan@alaska.gov> wrote: Thanks for the update Ronnie. Let me know when the rig is on location. Thanks Bryan Sent from my iPhone On Aug 6, 2021, at 6:33 AM, Ronnie Nutt <rnutt@brantaep.com> wrote: Good Morning Bryan, As an update to our process, Hilcorp has now informed us the rig will be available and on location Monday morning August 9, 2021. This is contingent on transportation logistics. We are anticipating the procedure will take 3-4 days to complete. I’m getting daily updates from the operator now and will keep you apprised of any changes to the plan. If you have any questions, please let me know. Ronnie Ronald C. Nutt Chief Operating Officer AIX Energy LLC 2441 High Timbers Suite 120 The Woodlands, Texas 77380 281.863.9935 Office 713.562.3318 Cell rnutt@brantaep.com From: Ronnie Nutt Sent: Wednesday, July 14, 2021 1:51 PM To: McLellan, Bryan J (CED) <bryan.mclellan@alaska.gov> Cc: Regg, James B (CED) <jim.regg@alaska.gov>; Randy Bates <rbates@brantaep.com>; Fred Tresca <fmttx@me.com>; Clayton King <cking@brantaep.com> Subject: Re: Kenai Loop #1-1 (PTD 211-043) Sundry approval for workover operations Good afternoon I received a call from Hilcorp this morning. They have changed their mind, again. The rig will now be headed into the yard for maintenance for 7 days after it completes the work in Cannery Loop then get on a barge to Ivan River to perform repairs on a well being mandated by the Department of Fish and Game. We will get the rig when it comes back to the inlet estimated on August 15. Quite the curve ball. I will let you know when I get a further update. Ronnie Ronald C. Nutt Chief Operating Officer 2441 High Timbers Suite 120 The Woodlands, Texas 77380 281.863.9935. Office 713.562.3318. Mobile rnutt@brantaep.com On Jul 14, 2021, at 9:24 AM, Ronnie Nutt <rnutt@brantaep.com> wrote: Good Morning Bryan, We finally worked out a date with Hilcorp for rig 401. The unit is currently in the Cannery Loop Field working on a well and will move to our location upon completion perhaps as soon as this weekend. We will hopefully make quick work of this procedure and get the well back in compliance. The scheduling delay was due to longer than expected process on the previous well in the Swanson River Field. From our location the rig will move to the Ivan River Field. I’m glad we got in the schedule before it went over there. I’ll let you know if we have any changes to this plan. Ronnie Ronald C. Nutt Chief Operating Officer AIX Energy LLC 2441 High Timbers Suite 120 The Woodlands, Texas 77380 281.863.9935 Office 713.562.3318 Cell rnutt@brantaep.com From: McLellan, Bryan J (CED) <bryan.mclellan@alaska.gov> Sent: Friday, June 18, 2021 11:54 AM To: Ronnie Nutt <rnutt@brantaep.com> Cc: Regg, James B (CED) <jim.regg@alaska.gov>; Randy Bates <rbates@brantaep.com>; Fred Tresca <fmttx@me.com>; Clayton King <cking@brantaep.com> Subject: RE: Kenai Loop #1-1 (PTD 211-043) Sundry approval for workover operations Thanks Ronnie. The July 1 start date sounds good. Regards Bryan McLellan Senior Petroleum Engineer Alaska Oil & Gas Conservation Commission Bryan.mclellan@alaska.gov +1 (907) 250-9193 From: Ronnie Nutt <rnutt@brantaep.com> Sent: Thursday, June 17, 2021 5:02 AM To: McLellan, Bryan J (CED) <bryan.mclellan@alaska.gov> Cc: Regg, James B (CED) <jim.regg@alaska.gov>; Randy Bates <rbates@brantaep.com>; Fred Tresca <fmttx@me.com>; Clayton King <cking@brantaep.com> Subject: RE: Kenai Loop #1-1 (PTD 211-043) Sundry approval for workover operations Good Morning Bryan, Thanks for the information. We still believe Hilcorp Rig 401 remains the most efficient and cost effective unit for our purpose. We have been in discussions with them since February to secure a slot in their rig schedule. We have sourced and purchased all equipment necessary for the workover and have a good plan in place to get the work done efficiently and safely. We are now being told by the company who supplies the crews for the unit that we have been slotted to receive the rig around July 1, 2021. We are attempting to confirm this with Hilcorp. Hopefully we can get this work done as soon as possible. If you have any questions or concerns, please let me know. Respectfully, Ronnie Ronald C. Nutt Chief Operating Officer AIX Energy LLC 2441 High Timbers Suite 120 The Woodlands, Texas 77380 281.863.9935 Office 713.562.3318 Cell rnutt@brantaep.com From: McLellan, Bryan J (CED) <bryan.mclellan@alaska.gov> Sent: Wednesday, June 16, 2021 11:50 AM To: Ronnie Nutt <rnutt@brantaep.com> Cc: Regg, James B (CED) <jim.regg@alaska.gov>; Randy Bates <rbates@brantaep.com>; Fred Tresca <fmttx@me.com>; Clayton King <cking@brantaep.com> Subject: RE: Kenai Loop #1-1 (PTD 211-043) Sundry approval for workover operations Ronnie, One correction to the note below… The BlueCrest rig has been idle since 3/15/2019. I’m not sure about its current status or viability. Regards Bryan McLellan Senior Petroleum Engineer Alaska Oil & Gas Conservation Commission Bryan.mclellan@alaska.gov +1 (907) 250-9193 From: McLellan, Bryan J (CED) Sent: Wednesday, June 16, 2021 8:37 AM To: Ronnie Nutt <rnutt@brantaep.com> Cc: Regg, James B (CED) <jim.regg@alaska.gov>; Randy Bates <rbates@brantaep.com>; Fred Tresca <fmttx@me.com>; Clayton King <cking@brantaep.com> Subject: RE: Kenai Loop #1-1 (PTD 211-043) Sundry approval for workover operations Ronnie, Below are the rigs that I know about: Of the recently active onshore Kenai rigs: Hilcorp Rig 401 (pulling unit) has been idle since 4/15/2021 Hilcorp Rig 169 was idle from approximately 1/15/21 until 4/7/2021, did one workover (~1 week) then was idle until 6/6/2021 Hilcorp Rig 147 has been idle since 12/1/2020 BlueCrest Rig 1 has been idle since approximately 3/15/2021 Bryan McLellan Senior Petroleum Engineer Alaska Oil & Gas Conservation Commission Bryan.mclellan@alaska.gov +1 (907) 250-9193 From: Ronnie Nutt <rnutt@brantaep.com> Sent: Tuesday, June 15, 2021 5:25 PM To: McLellan, Bryan J (CED) <bryan.mclellan@alaska.gov> Cc: Regg, James B (CED) <jim.regg@alaska.gov>; Randy Bates <rbates@brantaep.com>; Fred Tresca <fmttx@me.com>; Clayton King <cking@brantaep.com> Subject: Re: Kenai Loop #1-1 (PTD 211-043) Sundry approval for workover operations Bryan I’m being told there is only one rig that can perform this work. Which rigs are you referring to? We are trying to get this done as soon as possible. Yes, the well is currently producing. Ronnie Ronald C. Nutt Chief Operating Officer 2441 High Timbers Suite 120 The Woodlands, Texas 77380 281.863.9935. Office 713.562.3318. Mobile rnutt@brantaep.com On Jun 15, 2021, at 8:13 PM, McLellan, Bryan J (CED) <bryan.mclellan@alaska.gov> wrote: Ronnie, The AOGCC is expecting to see some progress on this soon. Several of the Kenai Peninsula rigs have been idle for much of this year. Is the well currently on production? Bryan McLellan Senior Petroleum Engineer Alaska Oil & Gas Conservation Commission Bryan.mclellan@alaska.gov +1 (907) 250-9193 From: Ronnie Nutt <rnutt@brantaep.com> Sent: Tuesday, June 15, 2021 2:32 PM To: McLellan, Bryan J (CED) <bryan.mclellan@alaska.gov> Cc: Regg, James B (CED) <jim.regg@alaska.gov> Subject: Re: Kenai Loop #1-1 (PTD 211-043) Sundry approval for workover operations We are still waiting on a rig availability schedule from Hilcorp. Hopefully this summer sometime but don’t have a firm date. Ronnie Ronald C. Nutt Chief Operating Officer 2441 High Timbers Suite 120 The Woodlands, Texas 77380 281.863.9935. Office 713.562.3318. Mobile rnutt@brantaep.com On Jun 15, 2021, at 5:29 PM, McLellan, Bryan J (CED) <bryan.mclellan@alaska.gov> wrote: Ronnie, Could you update us on your RWO timing? Thanks Bryan McLellan Senior Petroleum Engineer Alaska Oil & Gas Conservation Commission Bryan.mclellan@alaska.gov +1 (907) 250-9193 From: Ronnie Nutt <rnutt@brantaep.com> Sent: Friday, April 2, 2021 2:43 PM To: McLellan, Bryan J (CED) <bryan.mclellan@alaska.gov> Subject: Re: Kenai Loop #1-1 (PTD 211-043) Sundry approval for workover operations Will do Ronnie Ronald C. Nutt Chief Operating Officer 2441 High Timbers Suite 120 The Woodlands, Texas 77380 281.863.9935. Office 713.562.3318. Mobile rnutt@brantaep.com On Apr 2, 2021, at 5:41 PM, McLellan, Bryan J (CED) <bryan.mclellan@alaska.gov> wrote: Ronnie, I have a couple of questions about the wellbore diagram that was attached to the Sundry and I’d like you to make some changes when you submit your paperwork for the 10-404 after the workover. 1. The production packer appears as though it is not sealing the annulus because it is not wide enough. It looks as though there is a flowpath directly from the perforations up the Inner annulus. Please correct the drawing to indicate that the packer is sealing off the IA. 2. What are the strange symbols outlining the production liner supposed to represent. It looks as though maybe this is slotted liner or some other kind of non-standard tubular. It would probably be clearer if you just made the liner with solid lines, similar to what you have for production and surface casing. Thank you Bryan McLellan Senior Petroleum Engineer Alaska Oil & Gas Conservation Commission Bryan.mclellan@alaska.gov +1 (907) 250-9193 From: Ronnie Nutt <rnutt@brantaep.com> Sent: Thursday, March 25, 2021 6:42 AM To: McLellan, Bryan J (CED) <bryan.mclellan@alaska.gov> Subject: RE: Kenai Loop #1-1 (PTD 211-043) Sundry approval for workover operations Good Morning Bryan, Please see the answers to your questions below. Let me know if you have any more questions. I will give you a call this afternoon (my time) to discuss and confirm. Thanks Ronnie Ronald C. Nutt Chief Operating Officer AIX Energy LLC 2441 High Timbers Suite 120 The Woodlands, Texas 77380 281.863.9935 Office 713.562.3318 Cell rnutt@brantaep.com From: McLellan, Bryan J (CED) <bryan.mclellan@alaska.gov> Sent: Wednesday, March 24, 2021 4:46 PM To: Ronnie Nutt <rnutt@brantaep.com> Subject: RE: Kenai Loop #1-1 (PTD 211-043) Sundry approval for workover operations Thanks Ronnie. Bryan McLellan Senior Petroleum Engineer Alaska Oil & Gas Conservation Commission Bryan.mclellan@alaska.gov +1 (907) 250-9193 From: Ronnie Nutt <rnutt@brantaep.com> Sent: Wednesday, March 24, 2021 1:41 PM To: Stephen Hennigan <sfhennigan@outlook.com> Cc: McLellan, Bryan J (CED) <bryan.mclellan@alaska.gov> Subject: Re: Kenai Loop #1-1 (PTD 211-043) Sundry approval for workover operations Thanks Steve Bryan, I will have these answers back to you tomorrow. I’ll give you a call tomorrow to discuss Thanks Ronnie Ronald C. Nutt Chief Operating Officer 2441 High Timbers Suite 120 The Woodlands, Texas 77380 281.863.9935. Office 713.562.3318. Mobile rnutt@brantaep.com On Mar 24, 2021, at 3:44 PM, Stephen Hennigan <sfhennigan@outlook.com> wrote: Bryan I am no longer involved with the project due to a possible conflict. So I am copying Ronnie Nutt with AIX on this response. Thank you and have a blessed day! Stephen F. Hennigan, MS EGMT | Project Manager/Engineer Mobile: 337-849-5345 Email: sfhennigan@outlook.com From: McLellan, Bryan J (CED) <bryan.mclellan@alaska.gov> Sent: Wednesday, March 24, 2021 3:39 PM To: sfhennigan@outlook.com Subject: Kenai Loop #1-1 (PTD 211-043) Sundry approval for workover operations Hi Stephen, I’m reviewing your sundry application for the Kenai Loop #1-1 workover and had a few questions. 1. Which rig do you plan to use for the workover? We planning to use Hilcorp Rig 401 2. When do you plan to commence operations? As soon as we can get all equipment and parts on location and work into Hilcorp’s rig schedule. Currently waiting on upper and lower crossover subs for SSSV. 3. Please send a BOP and choke manifold diagram. Find attached. 4. Please send a wellhead diagram. Find attached. 5. What is the reservoir pressure and TVD depth at which the reservoir pressure is referenced. We conducted a 72 hour BHP survey in September of 2020. Bottom hole pressure was estimated to be 1,815 psi at 9,680’ TVD 6. What fluid will you leave in the inner annulus? 10.2 PPG NaCl/KCL Thank you Bryan McLellan Senior Petroleum Engineer STATE OF ALASKA Reviewed By:1561L OIL AND GAS CONSERVATION COMMISSION P.I. Supry UQ Zir[ BOPE Test Report for: KENAI LOOP 1-1 Comm Contractor/Rig No.: Hilcorp 401 Operator: AIX Energy LLC Type Operation: WRKOV Sundry No: Type Test: WIT 321-086 PTD#: 2110430 - DATE: 8/10/2021 ' Inspector Bob Noble Operator Rep: Lonnie Drolinger Rig Rep: Keven Reed Test Pressures: Insp Source Inspector Rams: Annular: Valves: MASP: Inspection No: bopRCN210811143258 250/2000 250/2000 250/2000 847 Related Insp No: TEST DATA MISC. INSPECTIONS: MUD SYSTEM: P/F ACCUMULATOR SYSTEM: 0 NA P/F - 0 Visual Alarm Ball Type Time/Pressure P/F Location Gen.: P Trip Tank NA - NA System Pressure 3000 P Housekeeping: -P Pit Level Indicators NT NT Pressure After Closure 2100 P PTD On Location P Flow Indicator NA NA- 200 PSI Attained 21 P Standing Order Posted P Meth Gas Detector P P Full Pressure Attained 85 P Well Sign _P 112S Gas Detector P P Blind Switch Covers: All stations . P Drl. Rig _P MS Misc NA N_ A_ Nitgn. Bottles (avg): 6 &2200 - P " Hazard Sec. P none NA ACC Misc none NA Misc NA FLOOR SAFTY VALVES: BOP STACK: Quantity P/F Upper Kelly 0 NA Lower Kelly - 0 _NA_ Ball Type _ _ 2 P .. Inside BOP 0 NA FSV Misc 0_ NA BOP STACK: Quantity Size P/F Stripper 0 none NA Annular Preventer 1 13 5/8 P #1 Rams _ 1 - 2 7/8" x 5" P _ #2 Rams 1 Blinds _ _ _ -_ _ P #3 Rams 0 none NA #4 Rams 0 _none NA_ #5 Rams 0 none NA #6 Rams 0 none NA Choke Ln. Valves 1 2 1/16" P HCR Valves 1 2 1/16" P Kill Line Valves 3 2 1/16" P Check Valve 0 none NA BOP Misc 0 none NA CHOKE MANIFOLD: Quantity P/F No. Valves 8 P Manual Chokes 2 P " Hydraulic Chokes 0 NA_ CH Misc 0 NA INSIDE REEL VALVES: (Valid for Coil Rigs Only) Quantity P/F Inside Reel Valves 0 NA Number of Failures: 0 Test Results Test Time 4 Remarks: Did not witness the PVTs as they didn't have any fluid in the pits; Tool Pusher told me they would test them when they have fluid in epi s. Rig hada new accumu a or, wo a great. The kill line has 3 valves and they were all tested. 1.Type of Request: Abandon Plug Perforations Fracture Stimulate Repair Well Operations shutdown Suspend Perforate Other Stimulate Pull Tubing Change Approved Program Plug for Redrill Perforate New Pool Re-enter Susp Well Alter Casing Other: ___________________ 2.Operator Name:4.Current Well Class:5.Permit to Drill Number: Exploratory Development 3.Address: 2441 High Timbers, Suite 120 Stratigraphic Service 6.API Number: 7.If perforating:8.W ell Name and Number: What Regulation or Conservation Order governs well spacing in this pool?na Will planned perforations require a spacing exception?Yes No 9.P roperty Designation (Lease Number):10.Field/Pool(s): Kenai Loop, undefined gas 11. Total Depth MD (ft): Total Depth TVD (ft): Effective Depth MD: Effective Depth TVD: MPSP (psi): Plugs (MD): Junk (MD): Casing Collapse Structural na Conductor Surface Intermediate 2090 Production 4790 Liner 7500 Packers and SSSV Type: Packers and SSSV MD (ft) and TVD (ft): SSSV: 12. Attachments: Proposal Summary Wellbore schematic 13.W ell Class after proposed work: Detailed Operations Program BOP Sketch Exploratory Stratigraphic Development Service 14.Estimated Date for 15.W ell Status after proposed work: Commencing Operations:OIL WINJ WDSPL Suspended 16. Verbal Approval:Date:GAS WAG GSTOR SPLUG Commission Representative: GINJ Op Shutdown Abandoned Ronald C. Nutt Contact Name: Chief Operating Officer Contact Email: Contact Phone: Date: Conditions of approval: Notify Commission so that a representative may witness Sundry Number: Plug Integrity BOP Test Mechanical Integrity Test Location Clearance Other: Post Initial Injection MIT Req'd? Yes No Spacing Exception Required? Yes No Subsequent Form Required: APPROVED BY Approved by:COMMISSIONER THE COMMISSION Date: Comm.Comm.Sr Pet Eng Sr Pet Geo Sr Res Eng Perforation Depth MD (ft): 3057 9705-9725, 10008-10049 8024 4.5 106783735 2 7/8" 10667 7.625 138 16 10.753057 6890 MD na 35803055 80218024 Length Size Kenai Loop #1-1 138 138 TVD Burst PRESENT WELL CONDITION SUMMARY STATE OF ALASKA ALASKA OIL AND GAS CONSERVATION COMMISSION APPLICATION FOR SUNDRY APPROVALS 20 AAC 25.280 MHT 9300082 211-043 The Woodlands, Texas 77380 50-133205350000 AIX Energy, LLC 8430 Tubing Grade: Tubing MD (ft): 9698-9717, 10000-10040 Perforation Depth TVD (ft): Tubing Size: 6.5 ppf L80 9666' Apr-21 Pkr: Baker 4 1/2" Model D SSSV: 2 7/8" Model TE-5 COMMISSION USE ONLY Authorized Name: Authorized Title: 17.I hereby certify that the foregoing is true and the procedure approved herein will not be deviated from without prior written approval. Authorized Signature: (337) 849-5345 sfhennigan@outlook.com Stephen F. Hennigan Pkr: 9666'MD/9659'TVD ±535' approval: Notify Commission so that a representative may witness Sundry Number: BOP TestMechanical Integrity Test Location Clearance ection MIT Req'd? Yes No ption Required? Yes No Subsequent Form Required: COMMISSION USE ONLY Ronald C. Nutt Contact Name: Chief Operating Officer Contact Email: Contact Phone: Date: me: e: certify that the foregoing is true and the procedure approved herein will not rom without prior written approval. gnature: (337) 849-5345 sfhennigan@outlook.com Stephen F. Hennigan Date for 15.W ell Status after proposed work: Operations:OILWINJ W DSPL Suspended proval:Date:GASWAGGSTOR SPLUG Representative:GINJ Op Shutdown Abandoned Apr-21 nts: Proposal Summary Wellbore schematic13.W ell Class after proposed work: ations Program BOP SketchExploratory Stratigraphic Development Service SSSV Type:Packers and SSSV MD (ft) and TVD (ft): SSSV:SSSV:2 7/8" Model TE-5 Pkr: 9666'MD/9659'TVD ±535' Tubing Grade:Tubing MD (ft): 6.5 ppf L80 9666'2 7/8" Tubing Size: 9698-9717, 10000-10040 Perforation Depth TVD (ft):pth MD (ft): , 10008-10049 75004.5 106783735 10667 8430 on 479080247.625 689080218024 ate 2090305710.753057 35803055 e or al n13816na138138 g CollapseMDLengthSizeTVDBurst D (ft): Total Depth TVD (ft): Effective Depth MD: Effective Depth TVD: MPSP (psi):Plugs (MD):Junk (MD): PRESENT WELL CONDITION SUMMARY esignation (Lease Number):10. Field/Pool(s): Kenai Loop, undefined gas082 g:8.W ell Name and Number: ation or Conservation Order governs well spacing in this pool?na perforations require a spacing exception?Yes No Kenai Loop #1-1 ame:4.Current Well Class:5.Permit to Drill Number: E xploratory Development 2441 High Timbers, Suite 120 Stratigraphic Service 6. API Number: 211-043 The Woodlands, Texas 77380 50-133205350000 AIX Energy, LLC quest: Abandon Plug Perforations Fracture Stimulate Repair We Operations shutdownpair Well Suspend Perforate Other Stimulate Pull Tub Change Approved Programll Tubing Plug for Redrill Perforate New Pool Re-enter Susp Well Alter Casing Other: er Casing ___________________ Form 10-403 Revised 3/2020 Approved application is valid for 12 months from the date of approval. By Samantha Carlisle at 10:50 am, Feb 17, 2021 321-086 Ronald C. Nutt Digitally signed by Ronald C. Nutt Date: 2021.02.17 13:41:13 -06'00' SFD 2/17/2021 Install ScSSV Xgls 50-133-20595-00-00 SFD 2/17/2021 10,680 SFD 2/17/2021 Reppair W ell DSR-2/17/21 10,667 847psi bjm - see attach BJM 4/2/21 10-404 BOP test to 2000 psi Surface - bjm Test Safety valve system within 5 days of returning the well to production. X Comm q 4/5/21 dts 4/5/2021 JLC 4/5/2021 RBDMS HEW 4/5/2021 AIX Energy LLC 2441HighTimbersDrive,Suite120,TheWoodlands,TX77380 832Ͳ813Ͳ0900Phone 832Ͳ585Ͳ0133Facsimile February17,2021 CommissionerJeremyM.Price,Chair AlaskaOilandGasConservationCommission 333WestSeventhAvenue Anchorage,Alaska99501Ͳ3572 Re:DocketNumber:OTHͲ20Ͳ045 SubsurfaceSafetyValve KL1Ͳ1(PTD2110430) KenaiLoopGasField CommissionerPrice, PleasefindattachedourSundryNoticeForm10Ͳ403fortheupcomingworkontheAIXoperatedKL1Ͳ1. Ihavealsoattachedthemostrecentwellboresketchandproposedprocedure. Asanupdate,wehavesecuredourreplacementSSSVandwillhaveitinroutetoAlaskasoon.Bakeris expectinga4Ͳweekdeliverytime.Wehavealsoidentifiedapossibleworkoverrigandareattemptingto secureaslotintheirschedule.Iwillkeepyouupdatedonourpotentialworkoverdate. Ifyouhaveanyquestions,pleaseletmeknow. Regards, RonaldC.Nutt ChiefOperatingOfficer AIXEnergyLLC 1 TO: JIM REGG AOGCC DATE: JANUARY 7, 2021 AIX ENERGY, LLC FROM: RONNIE NUTT- AIX COO Steve Hennigan, Consultant SUBJECT: KENAI LOOP #1-1 PTD 211 043 SCSSV Procedure Objective: Replace existing SCSSV and test same. Return well to production. Comments: Well location is in Sec 33 6n 11w, KPB Brief History: The well was drilled to test the production potential of the Tyonek formation sands. The well was completed and tested in January of 2012 by Sundries 311-172, 311-188, 311-388. A variance was allowed to lock out the SCSSV and run a cap string in January of 2012. The string was run in February of 2012. It was pulled June of 2015 to run BHP gauges and never replaced. Subsequently in December of 2020, AIX was put on notice per Docket Number:OTH-20-045. KB elevation: 21' AGL Services: Rig TBD Wire line Unit TBD Slick Line TBD Mast TBD Eline tools TBD Wellhead/Tree GE-Vetco Transportation TBD Misc rentals (including pressure pumps, tanks, etc.) TBD Housing TBD Supervision TBD Replacement SCSSV Baker Surface SCSSV Eqpmt Baker NOTE: All vendors are to have a current MSA in place. Hilcorp Rig 401 2 Pre service work Procedure: 1. Review with all vendors and be sure logistics are predetermined. 2. Be sure permits are applied for and in place. 3. Tree and wellhead were installed in 2012. Review details. 4. Perform evaluation and any service work required on surface controls of the SCSSV. 5. Review and record all pressures 6. Prep for cased hole work. Insure that all necessary equipment is ready once ETA of rig is determined. General Procedure: Part I 1. Notify regulatory agencies at least 48 hours prior to operations. All operations will comply with AOGCC regulations. All access will comply with surface use owner. 2. Mobilize initial service equipment to location. 3. Install BPV 4. Mobe to location, conduct pre-job safety meeting, perform JSA’s, begin RU of equipment and establish RKB. Adjust all elevations to RKB indicated on wellbore diagrams unless noted otherwise in the daily reports 5. Check all tubing and casing strings for pressure and record. 6. Conduct safety and operations meeting. ALL pressure tests to be recorded on a chart. CallAOGCCtowitnessasdesiredand/orrequired. 7. NU BOPE and test. Kill Well. Set plug in tubing here. Will need to install a TWC to test BOPs. - bjm Test BOP to 2000 psi. Notify AOGCC to witness. - bjm 3 Part II 8. Remove BPV. 9. Install lubricator and test. 10. MIRU Slickline a. Run gauge ring to below EOT b. Set blanking plug in 2-3/8” XN profile @ ±9687’. c. Monitor to be sure no leaking. d. Rig down Slickline. 11. Load tubing with produced water. Make sure annulus if full. 12. RU on tubing and unsting from packer. a. When unstung, allow fluids to equalize. b. Watch and record pressures. c. Carefully bleed off any trapped pressure. 13. POOH with tubing spooling control line carefully per Baker. a. When the SCSSV is reached, STOP POOH. b. Remove SCSSV. Refer to Baker procedure. Have Baker refurbish for back up. c. Install new SCSSV. 14. TIH to sting back into packer. a. Attach control lines to tubing per procedure b. Sting into packer. c. Test tubing to 5000 psi. Test backside. Verify no pressure on annulus from seal bore. 15. RU Slickline a. Set isolation sleeve in chemical injection nipple at ±450’. Test chemical injection line to 1500 psi. b. Pull isolation sleeve. c. Test Baker SCSSV control line. Leave valve in open position. d. Pull blanking plug. (MONITOR FOR PRESSURE FROM BELOW- TAKE CARE OF wl TOOLS.) e. POOH w/ WL tools. RD. (Set to side as swabbing may be necessary. 16. Set BPV. 17. Demobe 18. Unload well as soon as possible. Steps 9&10 should be done before ND tree/NU BOPs Fluids will start U-tubing with 10.2 ppg brine in annulus. Be prepared to circulate when pulling out of packer. Test IA to minimum 1.2 X MPSP Circulate completion fluid in place before stinging into packer. What fluid will be left in IA? Test safety valve system within 5 days of returning well to operation. - bjm brine to balance IA fluid Set Two-Way Check, ND BOP, NU tree, install and test SL lubricator prior to unloading the well or pulling the blanking plug. -bjm CMPLTN WELLBORE (6)Stephen F. (Steve) Hennigan 2/10/2021 PP MW FG Comments/ CSG VETCO DIR. (ppg or ppge) EVALUATION MD/TVD 5k tree TOC Csg Descr. USDW: 'Est Rkb 21'Air Gap 0'Wtr. Dpth 8.4 8.6 9.8 123' pen 138'0.5# N80HC Welded Drive Sz >>16 '' ROP/Gas log Cond/Drive to TD. Chemical inj Mandrel ±450' 1/4" SS 0.049 wall control line 2 7/8" 6.5 L80 2.347"ID API EUE 8rd M 5k Bkr 2 7/8" TE-5 SCSSV ±535' CBL EXPRO 04-29-2011 8.6 9.0 16.0 Triple combo 3057'45.5# L80 BTC 13 1/2'' 3055'10 3/4'' LOT #2 @ 3352' MD 14.7 ppg emw Poetential Inj zone TOC ±5000'md LOT#1 15.0 ppg emw 10.2 ppg NaCL/KCL CBL EXPRO 05 19 2011 n 8.6 9.2 13.5 Quad Combo plus 8024'²¢][¢²29.7# L80 BTC top/Vam btm 9 7/8'' 8021'²¢][¢²7 5/8'' ²¢][¢²j) BOT 5-1/2” 17# x 7-5/8 ” 29.7 - 39# ; ²¢][¢² 80 KSI Hyd Flex Lock Liner hanger w/ ²¢][¢² ZXP LT Packer 2 7/8" x 2 3/8" x-over @ 9685'²¢][¢²TOL 7892'' MD,7888'TVD 1.875" XN nipple @ 9687.14'²¢][¢² Cut string @ ±9689'²¢][¢² ²¢][¢²Baker Model D Pkr @ 9666' (9659'TVD) ²¢][¢² ²¢][¢² ²¢][¢²Top Perforation (RDX)9705 '' ²¢][¢²Bottom Perforation (6 SPF)9724.85' ²¢][¢²(9698'9717'TVD) NOTE:Test guns DID NOT release.²¢][¢² Cut string @±9689'. String fell.²¢][¢²Top Perforation (RDX)10008.15 Estimated top of fish 10240'MD ²¢][¢²Bottom Perforation (6 SPF)10049.17 ²¢][¢²(10000'10040'TVD) ²¢][¢² 2/16/2012 Baker Petrolite installed cap string to ±4000'²¢][¢² 6/23/2015 Baker Petrolite pulled cap string ²¢][¢² 6/24/2015 Expro ran 1.75" GR to 10200'²¢][¢² 6/25/2015 Expro ran PL & Psi BU ²¢][¢² 5/3/2016 Expro Ran PBU, set gauges in XN nipple, no fill ²¢][¢²PBTD 10565'DPM ²¢][¢² Drill ²¢][¢²CBL EXPRO 05 19 2011 8.6 11.4 16.5 Quad Combo plus 10680'##²¢][¢²12.6# L80 TCII 6 3/4'' 10667'4 1/2'' Test to 4500 psi. Mix and pump 40 bbls sealbond sweep at 12.5ppg 672 sx 141.2 slurry Class G + 1.2% BA-56, 3% KCL, .5%% EC-1, .4% CD-32, .2% A-2, .2%R-3, .05% Static Free, 1 ghs FP-6L. Yld 1.18 cu ft/sk,9.82' marker jt @ 8324' 15.8 ppg 4.951 gl H2O sk, 3.32 pumping time. 79.216 bbls water to mix.Landing collar 10591', Float collar @ 10633' Displace w 11.4 ppg mw.Tagged @ 10565' DPM Csg shoe 10676' WORK HISTORY Alaska AIX Energy LLC Kenai Loop # 1-1 Block/Sec 33 6N 11W Exploratory Kenai Peninsula () FIT#3 13.5 ppg emw Ser #.: 211 043 FMTN. TOPS/CASING & HOLE SIZE Pump 42 bbls Mud Clean II with red dye. Pump 3 bbls water. Test lines to 2k psi Cmt to surf @ 520 bbls. Pump 564 bbls 12 ppg cmt. Pump 5 bbls water to clear lines. Switch to rig pumps to displace w/45 bbls 8.8 ppg mud. Floats heldUnsting. CIP @ 21:000 1 hrs - R/u BJ for Cmt Job PJSM for Cmt Job - Tst Surf Lines 4000 Psi - OK 0.25 hrs - Repair BJ H2O Line ( cement plug in line) 1 hrs - Mx & Pump 30 Bbl 10PPG Spacer & Mx 3 Bbls Cmt - (Packing over/heating - S/dn & Observe) 2.25 hrs - Mx & Pump 126.5 Bbl Lead to Slurry wt 13.5 PPG - Follow w/ 52 Bbls Tail to Slurry Wt 15.8 PPG Shut/dn - Drop Plug & Pump 5 Bbls H2O - S/dn & Displace w/ Rig Pump - Plug Bumped @ Calculated Displacement - Press/up 1000 Psi (1900) & hold 5 Min - Bleed/off - Floats HeldCIP = 06:05 HrsNote: Btm Shoe @ 8024' & Float Collar @ 7938' Swanson River 2014 Moncla Rig 401 Knight Oil Tools BOP 2 1/16 10M Kill Valves Manual and HCR 2 1/16 10M Choke Valves Manual and HCR Swanson River 2014 Moncla Rig 401 Knight Oil Tools BOP 3.98' 4.54' 2.00' CIW-U 4.30'Hydril GK 11'’-5000 2 7/8 -5 variables Blind11'’- 5000 DSA, 11 5M X 7 1/16 5M 2 1/16 5M Choke and Kill Valves Swanson River Moncla #401 Choke Manifold 05/20/2014 10-3/4 X 7-5/8 X 2-7/8 OD, 5M MSP MB-235 MULTIBOWL ASSY HP 110059 BUCCANEER RESOURCES, KENAI PENINSULA , 2011 GE imagination at work GE Oil & Gas Drilling & Production 10-3/4”CSG 7-5/8”CSG 3-1/2”TUBING 11-5000 25.50” 3-1/8 5000 (85.00”) (47.00”) 3-1/8 5000 11-5000 18.81” 10-3/4”CSG 7-5/8”CSG 2-7/8”TUBING 11-5000 25.50” 11-5000 18.81” 2-9/16 50002-9/16 5000 (79.00”) (43.00”) 2-9/16 50002-9/16 5000 1 Carlisle, Samantha J (CED) From:Ronnie Nutt <rnutt@brantaep.com> Sent:Thursday, April 1, 2021 1:42 PM To:McLellan, Bryan J (CED) Cc:Rixse, Melvin G (CED) Subject:Re: Kenai Loop #1-1 (PTD 211-043) Sundry approval for workover operations Wecertainlycan.Ididn’tknowifyourofficewouldbeopenornot,butifsoIcanmakemyselfavailable.Justletme know Thanks Ronnie RonaldC.Nutt ChiefOperatingOfficer 2441HighTimbers Suite120 TheWoodlands,Texas77380 281.863.9935.Office 713.562.3318.Mobile rnutt@brantaep.com OnApr1,2021,at2:54PM,McLellan,BryanJ(CED)<bryan.mclellan@alaska.gov>wrote: Ronnie, IwouldliketodiscussyouplanforsecuringthewellfortreeremovalandfluidsfortheRWO.Someof thestepsinyourprocedureareoutoforderandthecurrentplanwillresultinalargedifferential pressurewhenthetubingispulledfromthepacker.Youhave8.6ppgfluidinsidethetubingand10.2 ppgfluidintheannulus,whichwillresultina900+psipressuredifferential.Youshouldtakemeasures tobalancethefluidsbeforepullingoutofthepacker. Canwehaveaphoneconversationtomorrowmorningaround11:00am? BryanMcLellan SeniorPetroleumEngineer AlaskaOil&GasConservationCommission Bryan.mclellan@alaska.gov +1(907)250Ͳ9193 From:McLellan,BryanJ(CED) Sent:Thursday,March25,20219:55AM To:RonnieNutt<rnutt@brantaep.com> Subject:RE:KenaiLoop#1Ͳ1(PTD211Ͳ043)Sundryapprovalforworkoveroperations Ronnie, Noworriesatall.EitherBOPstackisfine,butweliketoknowwhichonewillbeusedwhenapproving theSundry. 2 Thanksagain. BryanMcLellan SeniorPetroleumEngineer AlaskaOil&GasConservationCommission Bryan.mclellan@alaska.gov +1(907)250Ͳ9193 From:RonnieNutt<rnutt@brantaep.com> Sent:Thursday,March25,20219:43AM To:McLellan,BryanJ(CED)<bryan.mclellan@alaska.gov> Subject:RE:KenaiLoop#1Ͳ1(PTD211Ͳ043)Sundryapprovalforworkoveroperations SorryBryan, Mymistake.I’msearchingthrutheoldBuccaneerfilesnowforthewellheadschematic.I’llforward onceI’vegotit.TheirfilesarekindofamessandIwasn’taroundwhenthesewellsweredrilled.I’mnot surewhichBOPwillbeused,butwillgetwithHilcorpanddetermine. Thanks Ronnie RonaldC.Nutt ChiefOperatingOfficer AIXEnergyLLC 2441HighTimbers Suite120 TheWoodlands,Texas77380 281.863.9935Office 713.562.3318Cell rnutt@brantaep.com From:McLellan,BryanJ(CED)<bryan.mclellan@alaska.gov> Sent:Thursday,March25,202111:50AM To:RonnieNutt<rnutt@brantaep.com> Subject:RE:KenaiLoop#1Ͳ1(PTD211Ͳ043)Sundryapprovalforworkoveroperations Ronnie, Thanksforthetimelyresponsetomyquestions.AcouplefollowͲupquestions… x TheBOPdiagramattachmentincludesbotha7Ͳ1/16”and11”BOPstack.Doyouknowwhich oneyou’llbeusing? x Youincludedawellborediagraminyouremail,butIamlookingforawellhead&tree diagram.Couldyousendoneover? Thanksagain BryanMcLellan SeniorPetroleumEngineer 3 AlaskaOil&GasConservationCommission Bryan.mclellan@alaska.gov +1(907)250Ͳ9193 From:RonnieNutt<rnutt@brantaep.com> Sent:Thursday,March25,20216:42AM To:McLellan,BryanJ(CED)<bryan.mclellan@alaska.gov> Subject:RE:KenaiLoop#1Ͳ1(PTD211Ͳ043)Sundryapprovalforworkoveroperations GoodMorningBryan, Pleaseseetheanswerstoyourquestionsbelow.Letmeknowifyouhaveanymorequestions.Iwillgive youacallthisafternoon(mytime)todiscussandconfirm. Thanks Ronnie RonaldC.Nutt ChiefOperatingOfficer AIXEnergyLLC 2441HighTimbers Suite120 TheWoodlands,Texas77380 281.863.9935Office 713.562.3318Cell rnutt@brantaep.com From:McLellan,BryanJ(CED)<bryan.mclellan@alaska.gov> Sent:Wednesday,March24,20214:46PM To:RonnieNutt<rnutt@brantaep.com> Subject:RE:KenaiLoop#1Ͳ1(PTD211Ͳ043)Sundryapprovalforworkoveroperations ThanksRonnie. BryanMcLellan SeniorPetroleumEngineer AlaskaOil&GasConservationCommission Bryan.mclellan@alaska.gov +1(907)250Ͳ9193 From:RonnieNutt<rnutt@brantaep.com> Sent:Wednesday,March24,20211:41PM To:StephenHennigan<sfhennigan@outlook.com> Cc:McLellan,BryanJ(CED)<bryan.mclellan@alaska.gov> Subject:Re:KenaiLoop#1Ͳ1(PTD211Ͳ043)Sundryapprovalforworkoveroperations ThanksSteve Bryan,Iwillhavetheseanswersbacktoyoutomorrow.I’llgiveyouacalltomorrowtodiscuss 4 Thanks Ronnie RonaldC.Nutt ChiefOperatingOfficer 2441HighTimbers Suite120 TheWoodlands,Texas77380 281.863.9935.Office 713.562.3318.Mobile rnutt@brantaep.com OnMar24,2021,at3:44PM,StephenHennigan<sfhennigan@outlook.com>wrote: Bryan Iamnolongerinvolvedwiththeprojectduetoapossibleconflict.SoIamcopying RonnieNuttwithAIXonthisresponse. Thank you and have a blessed day! Stephen F. Hennigan, MS EGMT | Project Manager/Engineer Mobile: 337-849-5345 Email: sfhennigan@outlook.com From:McLellan,BryanJ(CED)<bryan.mclellan@alaska.gov> Sent:Wednesday,March24,20213:39PM To:sfhennigan@outlook.com Subject:KenaiLoop#1Ͳ1(PTD211Ͳ043)Sundryapprovalforworkoveroperations HiStephen, I’mreviewingyoursundryapplicationfortheKenaiLoop#1Ͳ1workoverandhadafew questions. 1. Whichrigdoyouplantousefortheworkover?WeplanningtouseHilcorpRig 401 2. Whendoyouplantocommenceoperations?Assoonaswecangetall equipmentandpartsonlocationandworkintoHilcorp’srigschedule.Currently waitingonupperandlowercrossoversubsforSSSV. 3. PleasesendaBOPandchokemanifolddiagram.Findattached. 4. Pleasesendawellheaddiagram.Findattached. 5. WhatisthereservoirpressureandTVDdepthatwhichthereservoirpressureis referenced.Weconducteda72hourBHPsurveyinSeptemberof2020.Bottom holepressurewasestimatedtobe1,815psiat9,680’TVD 6. Whatfluidwillyouleaveintheinnerannulus?10.2PPGNaCl/KCL 5 Thankyou BryanMcLellan SeniorPetroleumEngineer AlaskaOil&GasConservationCommission Bryan.mclellan@alaska.gov +1(907)250Ͳ9193 1 Carlisle, Samantha J (CED) From:Ronnie Nutt <rnutt@brantaep.com> Sent:Thursday, March 25, 2021 6:42 AM To:McLellan, Bryan J (CED) Subject:RE: Kenai Loop #1-1 (PTD 211-043) Sundry approval for workover operations Attachments:Moncla 401 Rig BOP and Choke Manifold.pdf; KL #1-1 Cmpltd WBS (1-1) SH Updated.pdf GoodMorningBryan, Pleaseseetheanswerstoyourquestionsbelow.Letmeknowifyouhaveanymorequestions.Iwillgiveyouacallthis afternoon(mytime)todiscussandconfirm. Thanks Ronnie RonaldC.Nutt ChiefOperatingOfficer AIXEnergyLLC 2441HighTimbers Suite120 TheWoodlands,Texas77380 281.863.9935Office 713.562.3318Cell rnutt@brantaep.com From:McLellan,BryanJ(CED)<bryan.mclellan@alaska.gov> Sent:Wednesday,March24,20214:46PM To:RonnieNutt<rnutt@brantaep.com> Subject:RE:KenaiLoop#1Ͳ1(PTD211Ͳ043)Sundryapprovalforworkoveroperations ThanksRonnie. BryanMcLellan SeniorPetroleumEngineer AlaskaOil&GasConservationCommission Bryan.mclellan@alaska.gov +1(907)250Ͳ9193 From:RonnieNutt<rnutt@brantaep.com> Sent:Wednesday,March24,20211:41PM To:StephenHennigan<sfhennigan@outlook.com> Cc:McLellan,BryanJ(CED)<bryan.mclellan@alaska.gov> Subject:Re:KenaiLoop#1Ͳ1(PTD211Ͳ043)Sundryapprovalforworkoveroperations ThanksSteve Bryan,Iwillhavetheseanswersbacktoyoutomorrow.I’llgiveyouacalltomorrowtodiscuss 2 Thanks Ronnie RonaldC.Nutt ChiefOperatingOfficer 2441HighTimbers Suite120 TheWoodlands,Texas77380 281.863.9935.Office 713.562.3318.Mobile rnutt@brantaep.com OnMar24,2021,at3:44PM,StephenHennigan<sfhennigan@outlook.com>wrote: Bryan Iamnolongerinvolvedwiththeprojectduetoapossibleconflict.SoIamcopyingRonnieNuttwithAIX onthisresponse. Thank you and have a blessed day! Stephen F. Hennigan, MS EGMT | Project Manager/Engineer Mobile: 337-849-5345 Email: sfhennigan@outlook.com From:McLellan,BryanJ(CED)<bryan.mclellan@alaska.gov> Sent:Wednesday,March24,20213:39PM To:sfhennigan@outlook.com Subject:KenaiLoop#1Ͳ1(PTD211Ͳ043)Sundryapprovalforworkoveroperations HiStephen, I’mreviewingyoursundryapplicationfortheKenaiLoop#1Ͳ1workoverandhadafewquestions. 1. Whichrigdoyouplantousefortheworkover?WeplanningtouseHilcorpRig401 2. Whendoyouplantocommenceoperations?Assoonaswecangetallequipmentandpartson locationandworkintoHilcorp’srigschedule.Currentlywaitingonupperandlowercrossover subsforSSSV. 3. PleasesendaBOPandchokemanifolddiagram.Findattached. 4. Pleasesendawellheaddiagram.Findattached. 5. WhatisthereservoirpressureandTVDdepthatwhichthereservoirpressureisreferenced.We conducteda72hourBHPsurveyinSeptemberof2020.Bottomholepressurewasestimatedto be1,815psiat9,680’TVD 6. Whatfluidwillyouleaveintheinnerannulus?10.2PPGNaCl/KCL Thankyou DATA SUBMITTAL COMPLIANCE REPORT 7/30/2013 Permit to Drill 2110430 Well Name/No. KENAI LOOP 1-1 Operator BUCCANEER ALASKAN OPERATION API No. 50-133-20595-00-00 MD 10680 TVD 10667 Completion Date 6/28/2011 Completion Status 1-GAS Current Status 1-GAS UIC N.) REQUIRED INFORMATION Mud Log Yes Samples No Directional Survey DATA INFORMATION Types Electric or Other Logs Run: HDIL,XMAC,ML,GR,CAL, BA, INTM (data taken from Logs Portion of Master Well Data Maint) Well Log Information: Log/ Electr Data Digital Dataset Log Log Run Interval OH/ III Type Med/Frmt Number Name Scale Media No Start Stop CH Received Comments Log V. Induction/Resistivity 2 Blu 170 5960 Open 5/23/2011 High Definition Induction,X-Multipole Array Acoustilog,Compensated Z-Densilog, / Compensated Neutron,6 Arm Caliper,GR Log Induction/Resistivity 25 Blu 170 10680 Open 5/23/2011 High Definition Induction,X-Multipole Array Acoustilog,Compensated Z-Densilog, Compensated Neutron,6 Arm Caliper,GR Rpt�� Report: Final Well RE 0 10680 Open EOW Report Log A...------ Mud Log 2 Col 138 10680 Open MD Formation Log Log,- Mud Log 2 CoI 138 10680 Open TVD Formation Log Log Mud Log 2 Col 138 10680 Open MD Combo Log Log/ Mud Log 2 Col 138 10680 Open TVD Combo Log Log Mud Log 2 Col 138 10680 Open MD Gas Ratio Log Log( Mud Log 2 Col 138 10680 Open TVD Gas Ratio Log Log Mud Log 2 Col 138 10680 Open MD Drilling Dynamics Log • Log -- Mud Log 2 CoI 138 10680 Open TVD Drilling Dynamics Log Log / Induction/Resistivity 5 Col 170 7530 Open 8/12/2011 MD Res,Dens Poro, Neutron Poro, Bulk Dens GR CALI Salinity RWA Rpt t/ Analysis-Misc 0 0 12/30/2011 Gas Analysis by Chandler Engineering Co. Log,- Induction/Resistivity 25 Blu 3000 9500 Open 5/23/2011 High Definition Induction,X-Multipole Array Acoustilog,Compensated Z-Densilog, Compensated Neutron,6 Arm Caliper,GR Log / Induction/Resistivity 25 Blu 8024 10650 Open 5/23/2011 High Definition Induction,X-Multipole Array Acoustilog,GR, Minilog Log ' Gamma Ray Spectro 5 Blu 8024 10569 Open 5/23/2011 Digital Spectralog,Caliper Log Log See Notes 5 Blu 8024 10663 Open 5/23/2011 Borehole Profile DATA SUBMITTAL COMPLIANCE REPORT 7/30/2013 Permit to Drill 2110430 Well Name/No. KENAI LOOP 1-1 Operator BUCCANEER ALASKAN OPERATION API No. 50-133-20595-00-00 MD 10680 TVD 10667 Completion Date 6/28/2011 Completion Status 1-GAS Current Status 1-GAS UIC N ED C Las 22966 Induction/Resistivity 80 10634 Open OH LAS log data Directional Survey plus PDF Graphics 1 ED... C Pdf 22967 Report: Final Well Re 0 10680 Open EOW Report Well Cores/Samples Information: Sample Interval Set Name Start Stop Sent Received Number Comments Cuttings 3075 10680 5/31/2011 1247 Cores and/or Samples are required to be submitted. This record automatically created 1 from Permit to Drill Module on:4/15/2011. 1 411 INFORMATION RECEIVED Completion Report Q Directional/Inclination Data Mud Logs, Image Files, Digital Data Q//NA Core Chips Y N� Production Test InformatiO NA Mechanical Integrity Test Information Yelk Composite Logs,Image,Data Files Core Photographs Y/0 Geologic Markers/Tops Z5. Daily Operations Summary C:J Cuttings Samples (6/NA Laboratory Analyses Y/ VA Comments: Compliance Reviewed By: --- -- — Date: 64c2)y��c • • • BUCCANEER A L A 3 K A May 18, 2012 Mr.Steve Davies Petroleum Geologist Alaska Oil and Gas Conservation Commission 333 West 7th Avenue,Suite 100 Anchorage,AK 99501 Dear Steve, Enclosed are the recently requested items related to the pending disposal permit for Buccaneer Kenai Loop#3 Well: 1. Digital logs—on CD; 2. Two(2) log displays of Kenai Loop 1 &3 Wells; and 3. Kenai Loop 1 Well mud log and report. Please let me know, if you require any additional data pertaining to these two (2)wells. Sincerely, David J. Doherty Chief Geologist DD/ph Enclosures 952 Echo Lane,Suite 420,Houston,TX 77024 Office: (713)468-1678 Fax: (713)468-3717 ocd • STATE OF ALASKA Ill ALASKA OIL AND GAS CONSERVATION COMMISSION REPORT OF SUNDRY WELL OPERATIONS 1.Operations Abandon U Repair Well U Plug Perforations U Stimulate U Other U Install Capillary Performed: Alter Casing ❑ Pull Tubing❑ Perforate New Pool ❑ Waiver❑ Time Extension❑ String Change Approved Program ❑ Operat.Shutdown❑ Perforate ❑ Re-enter Suspended Well❑ 2.Operator Buccaneer Alaska Operations,LLC 4.Well Class Before Work: 5.Permit to Drill Number: Name: Development ❑ Exploratory 151 211 043 3.Address: 952 Echo Lane,Suite 420,Houston,Tx 77024 Stratigraphic❑ Service ❑ 6.API Number: 50-133205950000 7.Property Designation(Lease Number): 8.Well Name and Number: MHT 9300082- Kenai Loop#1 9.Field/Pool(s): i('� ' Y)'1 Kenai Peninsula Exploration i e'ih tiL1 ii J P } Lt i s '1' Gm . f l , � 0 Summary: 1 .Present Well Condition Summa : 1 Total Depth measured feet Plugs measured feet true vertical feet Junk measured feet Effective Depth measured feet Packer measured feet true vertical feet ' true vertical feet Casing Length Size MD TVD Burst Collapse Structural Conductor Surface -____ — Intermediate 1 RECEIVED Production ! i Liner !I Perforation depth Measured depth feet • True Vertical depth feet Alaska 0II&�2S CCf15.Commission 1 1 Anchora r� Tubing(size,grade,measured and true vertical depth) ; _._-- — --~ Packers and SSSV(type,measured and true vertical depth) 11.Stimulation or cement squeeze summery: Intervals treated(measured): , Treatment descriptions including volumes used and final pressure: 12. Representative Daily Average Production or Injection Data Oil-Bbl Gas-Md Water-Bbl Casing Pressure Tubing Pressure Prior to well operation: 0 4250 Subsequent to operation: 5,000 '_4009 13.Attachments: 14.Well Class after work: Copies of Logs and Surveys Run Exploratory ril -- Development❑ Service ❑ Stratigraphic ❑ Daily Report of Well Operations attached 15.Well Status after work: Oil ❑ ,, Gas El WDSPL u Well Bore Diagram Attached GSTOR ❑ WINJ ❑ 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: 312-045 Contact Printed Name S.L.Ward Title Operations Manager Signature 2 4 V Phone 713-468-1768 Date 2/24/2012 4/2\ Form 10-404 Revis�:i .s - MAR 0 2 "7 L Submit Original Only s 7;‘, • • Buccaneer Alaska Production Kenai Loop#1 Install 3/8" Capillary string-2-16-2012 08:00 Arrive at well, conduct PJSM—topics discussed—slips,trips,falls, cold weather, high pressure, hole around electrical cable vault, hole beside choke where it goes underground. Muster point,three second rule, stop the job authority. 08:30 Wait on paperwork while spotting equipment. Pick up paperwork at Buccaneer officee 09:15 Bring PO 's to Baker Hughes. Proceed with rig up. Install 3/8" stainless steel control line into injector head. Install packoff w/flange. Remove flanged nite cap. Install 2 9/16"—5000#(bottom flange) x 2 9/16"—10,000#(top flange)with new flange gaskets. Bolt up flanged packoff onto spool piece and prepare to pressure test. 12:00 Pressure test spool piece on top of swab valve x packoff up to 5000#. Pressure test pack off to 5000#. Tests successful. Cap string guides (new) need to be modified for this injector head. Sent to shop for modification. 13:00 Waiting on cap string guides. 14:00 Start capillary string into hole. Well head pressure 4250#. Pushing capillary string into well • slowly but smoothly. Land fluid control valve at 4000" and at16:30 hours 16:30 Seat packoff, secure wellhead, rig down injector head, cut capillary string, plumb cap string into methanol pump 17:30 Re-set well house 18:00 Secure well head. Leave location Daily Cost—Baker Hughes Petrolite-$74,490.45 Cap String Chemical-$5,266.80 A • • Buccaneer Alaska Production Kenai Loop#1 Set Lock-out ring in Sub-Surface Safety Valve -2-14-2012 09:30 Arrive location. Inspect location, look for well house lifting ring. 09:45 Contact Marathon. Borrow lifting ring. Drive to KGF to meet operator with ring. 10:30 PJSM - review JSA's, assign jobs, slips,trips and falls. Muster area is front gate. Maximum pump pressure is 5000 psi. High pressure,flammable liquid. 11:00 Rig up slick line truck, crane truck and lubricator. Remove well house. 11:30 Rig up pump truck, pressure test lubricator to 4500#. Test good. 12:00 RIH with Baker Oil Tools lock out ring setting tool. Set lock out ring across Sub Surface Safety Valve. Release pressure from SSSV to seat lock out ring. Verify pressure bled off. Release tool from lock out ring. 14:00 Fish mandrel of lock out ring setting tool. POOH 14:15 Lock ring came back out of hole. Lock out failed to seat. 14:30 Send tool into Baker and re-dress. 16:00 Run back into hole w/Baker lock out ring tool. Set ring into SSSV. Bleed pressure off SSSV. Shear off tool. POOH 16:30 Run into hole and fish mandrel. POOH. Successful. SSSV lock out ring is in place. 17:00 Secure wellhead, install nightcap, pressure test same. 17:30 Leave location. Return to office. Pollard: daily cost-$6298.00 • I Buccaneer Alaska Production Kenai Loop#1 Pump Methanol to remove hydrate plug in tubing-2-1-2012 09:00 PJSM—topics discussed-slips/trips/falls. Cold weather(21 deg F), review 1SA, assign jobs. Three second rule. Stop job authority, muster area is front gate. Assign jobs. 09:30 RU B1 Services pump truck,AIMM Technologies vac truck with 50/50 methanol for pressure test, hard lines, well head adapter, pump in sub w/ 10,000 psi valve w/ 1502 connection, 10,000 psi cap and needle valve to bleed off lines. 10:30 Pressure test lubricator to 200 psi low and 6000 psi on the high side. Pump failed. Sending truck into shop to be re-built or trading out pump trucks whichever is faster. 11:30 RD B1 Services. Wait on replacement. 12:15 Replacement pump on location. Connect to hard lines. Transfer 50/50 methanol to pressure test to pump tanks 12:45 Pressure test. Leak on line. Repair. Pressure up to 200 psi, no leaks. Pressure up to 5920 psi. Hold for five minutes. Test good. Vac water mixture from lines. Charge pump w/100%methanol 13:30 Bring up pump to 4300#. Attempt to pump into tubing. Pump lost prime. No fluid away. 14:30 Gauge tank, re-prime pump, start over. Rate% BPM, pressure 4470. Pump pressure increased to 4920 psi when 5 BBL pumped. Shut down until pressure bled down to 4500 U. Re-fill suction tank with methanol. Re-start pump, pump pressure went up to 4700#at% BPM and then began to gradually drop off. Pressure dropped off to 4500#. Shut down when 10 BBL methanol pumped. 16:30 Bleed off pressure, rig up AIMM Tech.to vac fluid out of treatment lines. Rig down BJ Services. 13:00 Secure wellhead,turn methanol pump to chemical injection mandrel on and leave location. B1 Services—daily costs-$7,516.30 AIMM Technologies—daily costs-$870.00 0 • (wctq) 3.1.V11 ainiA ,.: ,7,-, t-4 n (6.7, IN . 1.- C) " vr -,.., .. = . i 0 t $ g i 1/41/4 j .... I 1; Ill 4 C. ... = (1) t-,4 .0111%, 00 NI -."-- CD - o p . E 4.. m z co ..c. CL ....., fil — 1,41 0 .0 N z 00 et 0 14. 4,... C ti) Ct Z Airlfait 4:0 Q. L .... E rn Z) 0 C 10 r c, "Noil wow (t1 fin Psi 0 X C (ID .., ir- › en ID it> rsi E 141 I ., N co 6 _t .. 3.. Q. 1. CD ii, • '17 Li) .104.atl.. I) M il) a. ,.. r, 71 v t 44 4' 1 13 e p io t C (6 .§(4 '0 2t 1 to r- --44111111111 ../. rq .. • • Buccaneer Alaska Production Kenai Loop#1 Remove hydrate plug in tubing-1-26-2012 08:00 PJSM—topics discussed-slips/trips/falls. Cold weather(0 deg F), review JSA,assign jobs. Three second rule. Stop job authority, muster area is front gate. Assign jobs. 08:30 RU slickline, lubricator, crane truck. 09:00 Pressure test lubricator to 4300#. Test good. 09:15 RIH w/2.25" OD Star bit. No bridges. Run down to packer. POOH. 10:15 Pull tool string into lubricator. Fill lubricator with methanol, dump load of methanol, bleed off pressure in lubricator. 10:30 RD lubricator, slickline and crane truck. 11:00 Secure wellhead,turn methanol pump to chemical injection mandrel on and leave location. Pollard Wireline—daily costs-$3992.00 • Buccaneer Alaska Production Kenai Loop#1 Remove hydrate plug in tubing-1-24-2012 17:00 PJSM—topics discussed-slips/trips/falls. Cold weather(-8 deg F), review JSA, assign jobs. Three second rule. Stop job authority, muster area is front gate. 17:30 RU Crane, Lubricator and wireline unit. 18:00 Pressure test lubricator and wellhead connections—4300#. Test good. Dump methanol down hole. 18:45 RIH w/2.25" OD tool to 511' MD. Tag ice plug. Pump methanol. POOH 19:00 Pump truck stopped working. Work on pump 24:00 Pressure on tubing 3300 psi. Pump truck still not working. Lay down lubricator. Take truck back into shop to work on it. To be continued on 1-25-2012 January 25. 2012-continued 14:00 Arrive at well, spot equipment. RU slickline, lubricator and crane truck. Atigun rental pump. 14:30 Prepare to pressure test lubricator. Inlet pressure to Atigun pump is not high enough. 18:30 Rig up transfer pump. Inlet hose to pump fails. Shut down pump. 19:00 Prepare to rig down. Noticed well head pressure is back to normal. RIH with 2.25" star bitl end to tag plug. Tag plug at 645' MD. Work tool. Cannot make any depth. POOH. 20:00 Secure wellhead, leave location. Continue injecting methanol down wellhead. Pollard Wireline daily costs-$5705.00 • le Permit*: 211-043 P ' i ' API#: 50-133205950000 Property Des: Kenai Loop#1 r T3 KB: 21'AGL ('KB Elevation) S33 T6N R11 W ilL 11 X= Kenai Peninsula,Alaska Y= Structural Lat: — 16" Top Bottom Long: MD Surf 138' Spud: TVD Surf 138' TD Reached: Surface Casing 10-3/4" 68 ppf Top Bottom K-55 MD Surf 3,057' _ : TVD Surf 3,055 Chemical Inj.Mandrel set 454'MD Intermediate Casing 7-5/8" N-80 29.7 ppf Top Bottom MD Surf 8,024' capillary injection string / TVD Surf 8,021' l 3/8"stainless set at 4000'MD • i Production Liner Baker Model D Packer set at 4-1/2" L-80 ppf 9666'MD 9659'TVD - Top Bottom 4 MD Surf 10,678' • TVD Surf 10,667' Production Tubing 0,..., 2-7/8" L-80 6.5 ppf Top Bottom MD Surf. 9666' Tubing tail at 9689'MD. No wireline TVD Surf. 9659' re-entry guide. Perforations Depth Top Bottom MD 9,705' 9,725' _ TVD 9,698' 9,717' Depth MD 10,008' 10,049' — TVD 10,000' 10,040' — 8 Fish in hole. Tubing tail with 2 bridge plugs cut off and dropped to bottom TD PBTD 10,678' MD MD 10,667' TVD TVD Well Name&Number: KL#1 I Lease: Kenai Peninsula Exploration County or Parish: Kenai Peninsula Borough State/Prov:I Alaska Country USA Perforations(MD): Perf(TVD): Angle/Perfs: Angle @ KOP and Depth: BHP: BHT: Completion Fluid: NaBr Dated Completed: Ground Level(MSL): Prepared By Craig Rang Last Revison Date: January 30,2012 , • • �,cc:31% U SEAN PARNELL,GOVERNOR[E (1, ALAsEA �T ALASKA OIL AND GAS 333 W.7th AVENUE,SUITE 100 CONSERVATION COMMISSION ANCHORAGE,ALASKA 99501-3539 ►7 PHONE (907)279-1433 FAX (907)276-7542 S. L. Ward Operations Manager Buccaneer Alaska Operations, LLC 3,( P043 215 Fidalgo Ave., Suite 100 Kenai, AK 99611 Re: Kenai Peninsula Field, Exploratory Pool, Kenai Loop #1 Sundry Number: 312-045 Dear Mr. Ward: Enclosed is the approved Application for Sundry Approval relating to the above referenced well. Please note the conditions of approval set out in the enclosed form. As provided in AS 31.05.080, within 20 days after written notice of this decision, or such further time as the Commission grants for good cause shown, a person affected by it may file with the Commission an application for reconsideration. A request for reconsideration is considered timely if it is received by 4:30 PM on the 23rd day following the date of this letter, or the next working day if the 23rd day falls on a holiday or weekend. Sincerely, illr o `� . or Co' 1 iss'.ner DATED this 0 day of February, 2012. Encl. 0 Yr STATE OF ALASKA �� RECEIVED ALASKA OIL AND GAS CONSERVATION COMMISSION APPLICATION FOR SUNDRY APPROVALS JAN 3 i 2' 20 AAC 25. 80 1.Type of Request: Abandon❑ Plug for Redrlll❑ Perforate New Pool❑ Repair Well❑'',; Change Approved Program ❑ Suspend❑ Plug Perforations❑ Perforate❑ Pull Tubing❑ 'aska ON&Gas e'Qti itima vjgJD 1 Operations Shutdown❑ Re-enter Susp.Well❑ Stimulate❑ Alter Casing❑ Other. Install ,&__ettViiiler methane ' 2.Operator Name: 4.Current Well Class: SYermrt to urm Number. ----°------= --__ , Buccaneer Alaska Operations,LLC Development ❑ Exploratory l0 211 043 3.Address: Stratigraphic ❑ Service ❑ 6.API Number. 215 Fidalgo Ave. Ste.100,Kenai,AK 99611 50-133205950000 7.If perforating,closest approach in pool(s)opened by this operation to nearest 8.Well Name and Number property line where ownership or landownership changes: Spacing Exception Required? Yes El No ❑ Kenai Loop#1 9.Property Designation(Lease Number): 10.Field/Pooi(s): MHT 9300082 Kenai Pennisula Exploration 11. PRESENT WELL CONDITION SUMMARY Total Depth MD(ft): Total Depth TVD(ft): Effective Depth MD(ft): Effective Depth ND(ft): Plugs(measured): Junk(measured): 11368 11000 11370 11000 na na Casing Length Size MD TVD Burst Collapse Structural 138 16 138 138 na na Conductor #`"; R "`- ,, 7S;v,,,;--. *` •:t- , ,.' ", ga a ;4,,,,,-04 Surface 3057 10.75 3057 3055 3580 2090 Intermediate 8024 7.625 8024 8021 6890 4790 Production TB Liner(Prod) r 3735 4.5 10678 10667 8430 7500 Perforation Depth MD(ft): Perforation Depth ND(ft): Tubing Size: Tubing Grade: Tubing MD(ft): 9705-9725,10008-10049 9698-9717,10000-10040 2-7/8" L80 9666' Packers and SSSV Type: Packers and SSSV MD(ft)and TVD(ft): Packer 9666'MD/9659'ND, Baker 4 1/2"Model 0 SSSV 536'MD/536'ND 12.Attachments: Description Summary of Proposal 0 13.Well Class after proposed work: Detailed Operations Program ❑ BOP Sketch ❑ Exploratory IN Development ❑ Service ❑ • 14.Estimated Date for 15.Well Status after proposed work: 2-Feb-12 Commencing Operations: Oil ❑ Gas ®r WDSPL ❑ Suspended ❑ 16.Verbal Approval: Date: WINJ ❑ GINJ ❑ WAG ❑ Abandoned ❑ Commission Representative: GSTOR ❑ SPLUG ❑ 17.I hereby certify that the foregoing is true and correct to the best of my knowledge. Contact Steve Ward 713-468-1768 Printed Name S.L.Ward Title Operations Manager Buccaneer Resources Signature .1674......., Phone 713 468 1678 Date 30-Jan-12 COMMISSION USE ONLY ,, Conditions of approval: Notify Commission so that a representative may witness Sundry Number: 3 1 ./L/1 5 Plug Integrity ❑ BOP Test ❑ Mechanical Integrity Test ❑ Location Clearance ❑ Other: it ScsSSSV w 4 ;.-tj P /1/4-C__ Zs. Z6 s- Cd q SF Required: /O.- ,, /// APPROVED BY A 3v/2 : ' OMMISSIONER THE COMMISSION Date: Form 1 r `" 1 r • FEB Submit in Dupl' ate 4r,% • rtD , 1 ORIGINAL. -�2_,Z . � . • • Buccaneer Alaska Operations, LLC Kenai Loop #1 Drilling Permit#211 043 Current Status of Well • Well placed on production on 1/13/12. Numerous surface freezing problems encountered due to subzero weather. Also having methanol pump problems. Well shut- in after a few hours to resolve freezing problems. • Well sporadically on production from 1/14—1/19/12. Replaced methanol pump with Baker CICM system to counteract the surface problems. • Well started having downhole hydrate problems on 1/20/12. Hydrate plugs removed on with wire line and pumping methanol from surface through to 1/21/12. (work report attached) • Unable to get chemical injection valve to open for communicating to tubing. Found that dummy valve installed and need to replace with injection valve. Chemical Injection 7 mandrel activated on January 22, 2012. Replaced dummy valve with injection valve set 4300#opening pressure with rate of 20-60 GPD (Work Report Attached) • Had problems keeping well flowing due to hydrates 1/24/12, removed with methanol and wireline. Had same problem repeated on 1/25/12 and 1/26/12. (work report attached) • Well died when hydrate plugged tubing again on 1/28/12. Pumped methanol down wellhead. Ran wireline to help clear hydrates, placed well back on production at 1MMCFD attempting to maintain production. Procedure to Install Methanol Injection Capillary String 1. Prepare to pull wellhouse from well. 2. Rig up Pollard Wireline crane truck to lift wellhouse from over wellhead. 3. Rig up Pollard Wireline slick line unit with lubricator, methanol injection unit, crane truck and wireline tools to run 2.25" OD Gauge Ring down tubing string to packer. Packer depth is 9666' MD. NOTE: TT is 2.375"tubing(ID= 1.995") XN nipple at 9687' (min ID is 1.875") 4. Pressure test lubricator and tree to a minimum of 5000 psi. Wellhead pressure should be 4250#. If there is an ice plug in tubing,the pressure may be bled off the tubing above the plug. The pressure must be equalized before going in the hole. If the plug comes loose and the pressure has not been equalized,the plug will be blown uphole. NOTE: use only 100%methanol. Do not use any water diluted methanol mixture. 5. RIH to 9666' MD with gauge ring. Do not go below packer due to tubing tail size restrictions. 6. In event of hydrate plugs, RIH with star bit while dumping methanol down tubing. Work tool string on hydrate plug until plug is removed. Tag packer. Note: equalize pressure above plug with pressure below by pressuring up from surface,before running wireline tools. 7. POOH with slickline tools. 8. RU BJ Services(Baker Hughes) capillary string coiled tubing unit. 9. Install flanged capillary string packoff onto wellhead above swab valve. 10. Set foot valve injection pressure for installation 2000 feet below tubing tail. Bottom ter hole pressure is 5800 psi and wellhead tubing pressure is 4250 psi. TVD is 10,000 feet so pressure should be 155 psi/1000 feet. Injection pressure should be above 4560 psi. 11. Install 3/8"capillary tubing into injector head, packoff and install on wellhead. 12. Run capillary string into 2 7/8"tubing string to depth of 2000' MD. 13. Seat capillary string into packoff and lock down. 14. Back off injector head and remove cap string from injector. 15. Rig up chemical injector pump and pump into tubing to verify foot valve is working. 16. In event foot valve is not working, pull capillary string out of well, reset foot valve, run back into hole and re-test foot valve. �,�. " 17. Rig down capillary string coiled tubing unit. d_-�' D SSS'41 18. Secure well head. Note: Block open Sub Surface Safety Valve,Upper and Lower Master Valves, and Swab Valve. Signs need to be placed on these valves noting that the valves are only to be closed in an emergency. Closure will cut the capillary string tubing causing failure of the chemical injection system and a fishing job to remove the capillary string. 19. Re-install the well house. 20. Start up methanol injection unit. 21. Return well to production. CCC - 46t °7 Waste/6j 4- 6:40(A. ZECre10"72t 11}— Sl-C&C S-3 / .. Permit#: 211-043 —may I I i I PI; API#: 50-133205950000 Kenai Loop#1 ■ Property Des I S33 T6N R11 W KB: 21'AGL ('KB Elevation) I X= Kenai Peninsula,Alaska Y° Structural 16" La t: Top Bottom Long: - Surf 138' Spud: ' TVD Surf 138' TD Reached - . Li Surface Casing 10-3/4" 68 ppf Top Bottom . • K 55 MD Surf 3,057' T_.,..; TVD Surf 3,055 M1 Chemical Inj.Mandrel set @ { 1; Intermediate Casing 454'MD 7-5/8" N-80 29.7 ppf Top Bottom SSSV set @ 536'MD MD Surf 8,024' ■ r' TVD Surf 8,021' I Production Liner Baker Model D Packer set at ` = 4-1/2" L-80 ppf 9666'MD 9659'TVD Top Bottom MD 8024' 10,678' TVD 8021 10,667' , Production Tubing 2-7/8" L--80 6.5 ppf Top Bottom Tubing tail at 9689'MD. No wireline , i MD Surf. 9666' re-entry guide Tubing tail is +f-12'2- `_ TVD Surf. 9659' 3/8"tubing,a XN nipple and*1- 4 ft of 2- 3/8"tubing. Min ID is 1.875" • Perforations Depth Top Bottom MD 9,705' 9,725' TVD 9,698' 9,717' Depth MD 10,008' 10,049' ,lr"_. TVD 10,000' 10,040' 1� 1C Fish in hole. Tubing tail with 2 bridge plugs cut off and dropped to bottom Estimated TOF is 10240'MD TD F..' fPBTD 10,678' MD MD 10,667' TVD TVD Well Name&Number: KL#1 Lease: Kenai Peninsula Exploration County or Parish: Kenai Peninsula Borough State/Prov:j Alaska Country: USA Perforations(MD): Perf(TVD): Angle/Perfs: Angle @ KOP and Depth: BHP:" BHT: Completion Fluid: NaBr Dated Completed: Ground Level(MSL): _ Prepared By: Craig Rang Last Revison Date:_ January 30,2012 • t • • KeAk -Ce, Regg, James B (DOA) Pro Zdl©43o From: Chuck Johnson [CJohnson @Buccaneeralaska.com] c ,I ? (v Sent: Monday, January 23, 2012 10:11 AM 's To: Regg, James B (DOA) Cc: Steve Ward; DOA AOGCC Prudhoe Bay Subject: RE: Kenai Loop#1 Well Safety Valve Test_Buccaneer Alaska Operations Jim, Wanted to give you an update as to our flowing status. Last 4 days we've experienced hydrate freezing problems in the well bore and at surface. We've had wireline work done on our injection mandrel and added better methanol delivery to the mandrel and at surface. We came back up online yesterday at 1600hrs and have been producing since then at a steady flow rate of 3.5mm. Please feel free to get back to me as to when you may want to schedule a witnessing of the safety valves. Chuck Johnson Buccaneer Alaska 907-394-3478 From: Regg, James B (DOA) [mailto:jim.reqgalaska.gov] Sent: Tuesday, January 17, 2012 11:52 AM To: Chuck Johnson Cc: Steve Ward; DOA AOGCC Prudhoe Bay Subject: RE: Kenai Loop #1 Well Safety Valve Test_Buccaneer Alaska Operations Please give daily update until you establish stable flow from KL#1. We will edule witness of SVS tests based on your reports. Jim Regg AOGCC 333 W.7th Ave,Suite 100 Anchorage,AK 99501 907-793-1236 From: Chuck Johnson mailto:CJohnson • Buc neeralaska.com Sent: Monday, January 16, 2012 1:21 PM To: Regg, James B (DOA) Cc: Steve Ward; Chuck Johnson Subject: Kenai Loop #1 Well Safety alve Test_Buccaneer Alaska Operations Importance: High Jim„ Wanted to let you know ,at we're flowing, but having problems at surface with equipment; and maintain steady production has proven o be difficult. I know when we last spoke that you'd like to see a maintained flow before a test 1 KeAcc r, Regg, James B (DOA) pn Z-1104;o From: Chuck Johnson [CJohnson @Buccaneeralaska.com] Sent: Thursday, January 19, 2012 2:18 AM Neetei I i� Z, To: Regg, James B (DOA) Cc: Steve Ward; DOA AOGCC Prudhoe Bay Subject: RE: Kenai Loop#1 Well Safety Valve Test_Buccaneer Alaska Operations Jim„ We've had intermittent production due to freezing problems at surface. Run times haven't been longer then 12-18hr periods. Changes were made and additional equipment added to help add to reliable production. We came online at 0000hrs 1- 18, and have been online ever since. Rates have fluctuated somewhat due to cold weather and freezing, but have maintained flow. Even though we've been online for a 24hr period we've yet to maintain a "flat lined"flow. Currently we're going on 12hrs with steady flow, and hoping that it continues as we make adjustments to our system. Once we hit the 24hr mark I'll give you the first update. Any questions feel free to call or ask, Chuck Johnson Buccaneer Alaska Operations 907-394-3478 From: Regg, James B (DOA) [mailto:jim.regg(aalaska.gov] Sent: Tuesday, January 17, 2012 11:52 AM To: Chuck Johnson Cc: Steve Ward; DOA AOGCC Prudhoe Bay Subject: RE: Kenai Loop #1 Well Safety Valve Test_Buccaneer Alaska Operations Please give daily update until you establish stable flow from KL#1. We will schedule witn-- of SVS tests based on your reports. Jim Regg AOGCC 333 W.7th Ave,Suite 100 Anchorage,AK 99501 907-793-1236 From: Chuck Johnson mailto:CJohnson • Buccaneera .ska.com Sent: Monday, January 16, 2012 1:21 PM To: Regg, James B (DOA) Cc: Steve Ward; Chuck Johnson Subject: Kenai Loop #1 Well Safety Valv est_Buccaneer Alaska Operations Importance: High Jim„ Wanted to let you know t .t we're flowing, but having problems at surface with equipment; and maintain steady production has proven,'o be difficult. I know when we last spoke that you'd like to see a maintained flow before a test 1 • i Regg, James B (DOA) From: Regg, James B (DOA) Sent: Tuesday, January 17, 2012 11:52 AM To: Chuck Johnson Cc: Steve Ward; DOA AOGCC Prudhoe Bay Subject: RE: Kenai Loop#1 Well Safety Valve Test_Buccaneer Alaska Operations Please give daily update until you establish stable flow from KL#1. We will schedule witness of SVS tests based on your reports. Jim Regg AOGCC 333 W.7th Ave,Suite 100 Anchorage,AK 99501 907-793-1236 From:Chuck Johnson [mailto:CJohnson0Buccaneeralaska.com] Sent: Monday,January 16, 2012 1:21 PM To: Regg, James B (DOA) Cc: Steve Ward; Chuck Johnson Subject: Kenai Loop #1 Well Safety Valve Test_Buccaneer Alaska Operations Importance: High Jim„ Wanted to let you know that we're flowing, but having problems at surface with equipment; and maintain steady production has proven to be difficult. I know when we last spoke that you'd like to see a maintained flow before a test to be observed, and we're working hard to achieve this.We're looking to have workable changes in place not latter then tomorrow evening, if not this afternoon. This should and will add to a more stable flow from KL-1. I wanted to give you this information as I don't want to put Buccaneer in a bad spot to fall out of our 5 day period for a required test, but wanted to work with you and hopefully get some input back from you as to when AOGCC will want a test. Chuck Johnson Buccaneer Alaska Operations 907-394-3478 1 STATE OF ALASKA - ALASKA . AND GAS CONSERVATION COMMISSI REPORT OF SUNDRY WELL OPERATIONS 1.Operations Abandon U Repair Well L Plug Perforations Li Stimulate ❑ Other IA Prep Well for Prod Performed: Alter Casing ❑ Pull Tubing❑ Perforate New Pool ❑ Waiver ❑ Time Extension❑ Change Approved Program ❑ Operat.Shutdown❑ Perforate ❑ Re-enter Suspended Well❑ 2.Operator Buccaneer Alaska Operations 4.Well Class Before Work: 5.Permit to Drill Number: Name: Development❑ Exploratory 0 211 043 3.Address: 215 Fidalgo Ave.Suite 100,Kenai AK 99611 Stratigraphic❑ Service ❑ 6.API Number: 50-133205950000 7.Property Designation(Lease Number): 8.Well Name and Number: MHT 9300082 Kenai Loop#1 p R I" 9.Field/Pool(s): Y� Kenai Peninsula Exploration pp/�g��N' 0 2012 10.Present Well Condition Summary: Jt�!`! Total Depth measured 11,368 feet Plugs measured fi e t Cta�gfft±� true vertical 11,000 feet Junk measured feed Effective Depth measured 11,370 feet Packer measured 9,666 feet true vertical 11,000 feet true vertical 9,659 feet Casing Length Size MD TVD Burst Collapse Structural 138 16 138 138 N/A N/A Conductor Surface 3057 10 3/4 3057 3055 3580 2090 Intermediate 8024 7 5/8 8024 8021 6890 4790 Production Liner 3735 4 1/2 10,678 10,667 8430 7500 Perforation depth Measured depth 9705-9725 feet 10,008-10,049 ft. True Vertical depth 9698_9717 feet 10,000-10,040 ft. Tubing(size,grade,measured and true vertical depth) 2 7/8 L-80 9,666 ft. 9,659 ft. Packers and SSSV(type,measured and true vertical depth) 2 7/8 Baker TE5 536 ft. 536 ft. 11.Stimulation or cement squeeze summary: N/A Intervals treated(measured): N/A 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: N/A N/A N/A N/A N/A Subsequent to operation: N/A N/A N/A N/A N/A 13.Attachments: 14.Well Class after work: Copies of Logs and Surveys Run N/A Exploratory 0 Development❑ Service ❑ Stratigraphic ❑ Daily Report of Well Operations N/A 15.Well Status after work: Oil ❑ Gas si WDSPL❑ GSTOR ❑ WINJ ❑ WAG ❑ GINJ ❑ SUSP❑ SPLUG❑ 16.I hereby certify that the foregoing is true and correct to the best of my knowledge. SundoL Nu7 ,err o3 .• Exempt: Contact Steve Ward Printed Name Steve Ward Title Operations Manager Signature 7„_._ Z �d/ Phone 907-335-0600 Date 12/29/2011 RBDMS JAN 0 4 201Pf k''(- Form 10-404 Revised 10/2010 Submit Original Only . vik IP • ......... , Permit I: 211-043 . ! I, • i i 1 111 API It. 50-133205950000 1 Kenai Loop Si 0 ,. Property Des, 11 i I 1KB, 21'AGL (KB Elevation) S33 T6N R11W I X= Kenai Peninsula.Alaska 1 Yr-.- Samsun, Lat. Top Bottom i Long. , MD Surf 138' tSpud: 1 ND Surf 138' ' TD Reached:. Surface Casing , • i , , ' t 10-3W 68 p0 Top Bottom -..._- K-55 MD Suit 3057' ND Suit 3,055 Chemical IM,Mandrel seta 7' :j_,3-lit i lfii 500'MD , ' 7-5/0* N-80 29,7 ppf Top Bottom SSSV set•536'MD Pm Ste 8,024' ND Surf 8,021' ,V. v r Production Liner Baker Model D Packer set at It , ''..4 4.1/2" L-80 ppf 9666'MD 9659'TVD Top Bottom .1 . MD Surf 10.678' TVD Surf 10,66T 1, Ptoduction Tubing 2-vr 1-80 61 ppf k Top Bottom Tubing tal M 9689'LIG Nov.:rein* 1..............__ '' MD Surf.. 9666' re-entr).guide, ND Surf. 9659' '4 Perforations -4•.- Depth Top Bottom =a= MD 9,705' 9,725' TVD 9,690 9,717' Depth .- ......_ ____....--1. MD 10,000 10.0E9' - Fish m hole,Tutting lei Oh 2 bridge plugs cut off and dropped to bottom 4 .4. - -1-, a., TD I,'L _____ IPBTD 10,678* MD MD 10,667' TVD ND Well Name a NtIlabef: KUM I Lease: Kenai Peninsula Exploration • *Parish: Italian Peninsula-• • , Stde/Prov: Alaska • . USA Perforations(MD): Perf(TVD): Angie (43:1 Angle fa KOP and Depth: BHP: BHT:I Completion Fkid: Neer Dated Complatett Ground level(MSL): I Prepared By: Craig Rang Last R4M11011 Dale: December 29,2011 t.- I Ir.-) R OLIVLn.„,,, s A tip v t Daily Drilling Report Buccaneer Alaska Operations WELL NAME: Kenai Loop#1 DATE: 27-Dec-11 DAYS SINCE SPUD: na O.A.R.T. Prepare well for production STATE: Alaska COUNTY: Kenai Peninsula Borough DEPTH: 10,680 feet in Tyonek HOLE MADE: 0 Feet in Previous 24 Hours CONTRACTOR: GE Vetco Gray,Pollard Wireline I Casings: Size Type MD TVD 24 hr Summary: Rigged up Vetco Gray. Pulled Back PreS$ure°Ova. Rigged up Pollard r 16" 84 lb/ft 138' 138' Wireline. Pressure tested wellhead and lubricator. Pulled equalizer prong and; 10 3/4" 45.5 lb/ft 3057' 3055' plug in SSSV body at 535'MD. Rig down Pollard wireline, Secure wellhead. 7 5/8" 29.7 8024' 8021' Lock out Tag Out wellhead. ' �" 4 1/2" 12.6 10678' 10667' " ,< MUD CONDITIONS WT VIS PV YP GELS pH API FL SOLIDS ALK CL CA SAND RHEOL MUD FL SAMPLE SAMPLE ppg s/qt cP lb/100W lb/100ft` cc/30 mns %/vol ppm ppm %by vol degF degF degF DEPTH TIME II DRILL BIT INFORMATION BIT DIA MFG TYPE SERIAL JETS DEPTH DRILL OBD PMP ROP CONDITION DULL BIT number inches number 32nd OUT feet hrs hrs (f/h) ICS OCS DC LOC B/S G ODC POH OFF BOTTOM CIRCULATING PUMP INFORMATION BIT WOB TD PDM STROKE LINER SPM GPM PUMP ANNULAR NOZZLE SURFACE BIT %HP HPI NO. (klb) rpm rpm LENGTH SIZE PRESSURE VELOCITY VELOCITY HHP HHP AT BIT IN . A , BOP Tests/Drills,etc Last BOPe Test DRILLS Pit DrIl DAY secs SPR's Pump No._ 1 psi @ 60 spm Next Test Date Pit DrIl NITE secs Pump No. 2 psi @ 60 spm Rams Pump No. _ 3 _ psi @ 60 spm BOTTOM HOLE ASSEMBLY#2/DRILLPIPE I DRILL COLLARS ITEM OD(in) LGTH(ft) REMARKS(Tool Joints,Weight/Feet,Etc.) TIME DIST HRS CUM RU/RD 0 175.5 DRLG 0 267 REAM/WASH 0 5 WELL TESTING 12 246 TRIP 0 132.5 RIG SERV 0 11.5 CIRC/COND 0 107.5 RN CSG/CMT 0 62 WOC 0 8 NU/TST BOP 0 121.5 REPR 0 8.5 LOG 0 75 FISH 0 0 BHA 0 22.5 PU/LD DP 0 79.5 MONITOR RIG 0 600 WELLHEAD 0 13.5 Total BHA Length: 0.00 0 0 MISC 0 26.5 MOST RECENT DIRECTIONAL SURVEYS TOTALS: 12 600 MD(ft) INC AZ TVD(ft) V Section(ft) North/South(ft) East/West(ft) DLS/100 FRESH WTR 0 0 BRINE WTR 0 0 DAILY CUM COST COST RIG $ 616,858 MUD $ 506,440 DISPOSAL-AIMM $ 35 DISPOSAL-PENN $ 1,815 $ 11,463 DAILY MUD PRODUCTS USED BIT/RMR $ 67,789 NaBr salt KCL RENT(SURF) $ 1,137 $ 120,232 conqor duo-vis RENT(BHA) $ 463 $ 275,164 RENT MATS $ - TIME ACTIVITIES MUD LOGGER $ 157,866 8:00 PJSM-Review JSA,safety issues,cold weather issues SUPR $ 6,000 $ 212,800 8:30 RU Vetco. Pull BPV CSG CREW $ 64,618 9:00 9:30 RD Vetco Gray LOG/DST $ 858,127 10:00 10:30 PJSM-Pollard Wireline,review JSA's,assign jobs,high pressure,cold,muster points CSG&CH $ 495,082 10:30 11:00 RU-Pollard wireline unit,lubricator and crane unit CMT&CMTG $ 457,562 11:00 14:45 Pressure test lubricator to 4500#,pump failed,wait on replacement pump ROAD/LOC $ 295,210 14:45 15:30 Pressure test lubricator to 4500#-trest good. Pump 90 gallons methanol down tubing WATER $ 861 15:30 15:45 Pull equalizer prong in SSSV body at 535'MD WELLHEAD $ 1,750 $ 37,184 15:45 16:00 Pull"X"plug in SSSV body at 535'MD MOB/DEMOB $ 86,094 16:00 16:30 Rig down Pollard Wireline,lubricator and crane truck TRK/HOT SHOT $ 4,640 $ 93,040 16:30 17:00 Secure wellhead,Lock out Tag out wellhead valves-leave location FISHING/WOC $ - COND/CELLAR $ 21,454 WIRE LINE $ 36,197 $ 48,008 FUEL/LUBE $ 198,685 DIRECTIONAL $ 306,584 SECURITY $ 100,100 'Hauled fosse: 0 TG u IDA $ 1,174,898 Weather:Cloudly Winds:5 mph Temperature:52 deg F WELL TESTING $ 14,484 $ 586,351 Company Supvs: Craig Rang Rig Ph No's: 907-252-2000 MISC $ 8,735 $ 25,156 MD TOTALS: $ 75,221 $ 7,560,361 ke/te- , (-O01 Regg, James B (DOA) Pm 2—)(—O4 From: Steve Ward [SWard @BuccaneerResources.com] Sent: Friday, December 30, 2011 5:24 PM To: Regg, James B (DOA) Subject: Buccaneer KL#1 well gas aanalysis Attachments: Buccaneer_Kenai Loop_1_052311_Run-Comp Ananlysis.txt Jim-- Please find attached the gas analysis from the original testing of the well in May. Thanks, Steve Ward 1 ill III �\Pmt L U 1 f pTb 2.1(-04,- Buccaneer_Kenai Loop_1_052311_RUn-Comp Ananlysis Chandler Engineering Co. Model 292/2920 BTU Analyzer Test time: May 23 11 06:29 Calibration #: 14 Test #: 5 Location No. :101 Standard/Dry Analysis _ Saturated/wet Analysis Mole% BTU* R.Den.* GPM** Mole% BTU* R.Den.* Methane 98.940 996.20. 0.5480 -- 97.209 978.77 0. 5384 Ethane 0.187 3.29 0.0019 0.0496 0.183 3.24 0.0019 Propane 0.049 1.24 0.0008 0.0135 0.048 1.22 0.0007 ( C6+ ) 0.109 5. 51 0.0035 0.0467 0.107 5.41 0.0034 Moisture 0.000 0.00 0.0000 -- 1.750 0.88 0.0109 Nitrogen 0.371 0.00 0.0036 -- 0.364 0.00 0.0035 ( CO2 ) 0.344 0.00 0.0052 -- 0.338 0.00 0.0051 ideal 100.00 1006.2 0.5630 0.1098 * : uncorrected for compressibility at 60.OF & 14.650PSIA. **: Liquid volume reported at 60.0F. Standard/Dry Analysis Saturated/Wet Analysis Molar Mass = 16.305 16.335 Relative Density = 0.5639 0.5650 Compressibility Factor = 0.9980 0.9979 Gross Heating value = 23492. Btu/lb 23059. Btu/lb Gross Heating value = 1008.3 Btu/CF 991.6 Btu/CF Absolute Gas Density = 42.9187 lbm/1000CF 43.0019 lbm/1000CF wobbe Index = 1320.50 unnormalized Total • 101.011 Last Calibrated with Calgas of 1051. 5 Btu/CF Apr.24 11 23:18 BUCCANEER KENAI LOOP #1 101 SEP. GAS Temp: NA Deg F Press: NA# Sample Date: 5/23/11 Run Date: 5/23/11 RUN 2 MSN: 101 Page 1 • • ,i3\invs t A! �� 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 Stephan Ward Production Operations Manager _ O t Buccaneer Alaska Operations, LLC `'� 952 Echo Lane, Suite 420 Houston, TX 77024 Re: Exploratory Field, Exploratory Pool, Kenai Loop #1 Sundry Number: 311-388 Dear Mr. Ward: Enclosed is the approved Application for Sundry Approval relating to the above referenced well. Please note the conditions of approval set out in the enclosed form. As provided in AS 31.05.080, within 20 days after written notice of this decision, or such further time as the Commission grants for good cause shown, a person affected by it may file with the Commission an application for reconsideration. A request for reconsideration is considered timely if it is received by 4:30 PM on the 23rd day following the date of this letter, or the next working day if the 23rd day falls on a holiday or weekend. Sincerely, Daniel T. Seamount, Jr. Chair DATED thisLZ day of December, 2011. Encl. (Ii) �,�''it f -tea s • ill 01" rC t C E 1 VED/fP24 - STATE OF ALASKA t 2' RI` i'' it ALASKA OIL AND GAS CONSERVATION COMMISSION 'Qt,..' APPLICATION FOR SUNDRY APPROVALS Al Ka 011 &Gas Cfi ts" Co mission 20 AAC 25.280 1.Type of Request: Abandon❑ Plug for Redd!❑ Perforate New Pod❑ Repair Well❑ Change pppidvl lf'i?ogram 0 Suspend❑ Plug Perforations p Perforate❑ Pull Tubing❑ Time Extension ❑ Operations Shutdown❑ Re-enter Susp.Well❑ Stimulate❑ Alter Casing❑ Other. Prepare Well for Prod.P1 2.Operator Name: 4.Current Well Class: 5.Permit to Drill Number. Buccaneer Alaska Operations,LLC Development ❑ Exploratory © 211 043 3.Address: Stratig raphic ❑ Service ❑ 6.API Number: 952 Echo Lane,Suite 420,Houston,Texas 77024 50-133205950000 ` 7.If perforating,closest approach in pooi(s)opened by this operation to nearest 8.Well Name and Number property line where ownership or landownership changes: Spacing Exception Required? Yes m ) No El Kenai Loop#1 9.Property Designation(Lease Number): , ` 10.Field/Pool(s): Kenai Pennisula Exploration MHT 9300082 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): 11368 11000 11370 11000 na na Casing Length Size MD ND Burst Collapse Structural 138 16 138 138 na na Conductor Surface 3057 10.75 3057 3055 3580 2090 Intermediate 8024 7.625 8024 8021 6890 4790 Production TB Liner(Prod) 3735 4.5 10678 10667 8430 7500 Perforation Depth MD(ft): Perforation Depth TVD(ft): Tubing Size: Tubing Grade: Tubing MD(ft): 9705-9725,10008-10049 9698-9717,10000-10040 2-7/8" L80 9666' Packers and SSSV Type: Packers and SSSV MD(ft)and TVD(ft): Packer 9666'MD/9659'TVD, Baker 41/2"Model D SSSV 536'MD/536'TVD 12.Attachments: Description Summary of Proposal 0 13.Well Class after proposed work: Detailed Operations Program ❑ BOP Sketch ❑ Exploratory El Development ❑ Service ❑ 14.Estimated Date for '15.Well Status after proposed work: 9 28-Dec-11 Oil ❑ Gas © WDSPL ❑ Suspended El Commencing Operations: 16.Verbal Approval: Date: WINJ ❑ GINJ ❑ WAG ❑ Abandoned El Commission Representative: GSTOR ❑ SPLUG ❑ 17.I hereby certify that the foregoing is true and correct to the best of my knowledge. Contact Steve Ward 713-468-1768 Printed Name Stephen L.Ward Title Production Operations Manager Buccaneer Alaska Signature 4/4.7 Phone 713 468 1678 Date 15-Dec-11 COMMISSION USE ONLY 4 Conditions of approval: Notify Commission so that a representative may witness Sundry Number: 31 t- V o Plug Integrity ❑ BOP Test ❑ Mechanical Integrity Test El Location Clearance ❑ Other. Subsequent Form Required: ®`� ,sj�.k�.p t.�` ‘0'.:' `--, e S - E \�' 0 j APPROVED BY Approved by: % % COMMISSIONER THE COMMISSION Date: I,L /ZZ it 1 I Form V +3 Revised'Mee — DEC 22 Submit in Duplicate • Buccaneer Alaska Operations, LLC Kenai Loop #1 Drilling Permit #211 043 Procedure to Prepare well for Production 1. Rig up Vetco Gray to change out Surface Safety Valve air actuated unit to Hydraulic actuated unit. Pressure test tree to 5000 psi. Cycle SSV to verify unit is working properly. 2. Remove Back Pressure Valve in tubing just below tree. Note: this valve is the property of Buccaneer. Have Vetco Gray service valve, package valve and place into storage for future use. 3. Rig up Pollard Wireline slick line unit with lubricator, methanol injection unit, crane truck and wireline tools to pull plug in XN profile of Baker SCSSSV set at 536' MD. 4. Pressure test lubricator and tree to a minimum of 5000 psi. 5. Pull plug in XN profile. Note: Tubing may require 3200#of pressure to be applied to equalize pressure on top of plug. Records indicate 3200#of pressure between SSSV and plug in profile. Do not open SSSV as this will only increase the differential pressure required. The pressure below the SSSV should be 4450#. 6. Pull slick line tools into the lubricator and secure the wellhead. Close upper and lower master valves,swab valve,wing valve and SSV. 7. Apply 3000—3500 psi hydraulic pressure to Baker SCSSSV to open downhole safety valve. Verify pressure on well head below Lower Master Valve. Note: pressure should be a minimum of 4425#depending on accuracy of gauge. Gauge must be minimum of 5000#full scale or larger. Increase in pressure should be immediate. 8. Bleed off pressure to SCSSSV and shut in valve. 9. Rig down Pollard Wireline. 10. Secure wellhead by placing well house over well, remove tree valve handles and place handles in storage trailers. t CMPLTN WELLBORE (6) Stephen F.(Steve)?28/201 Buccaneer Alaska Opns LLC 0 Kenai Loop # 7 BIocWSec 33 6N 11W Wildcat 0 Kenai Peninsula 0 Alaska Ser#.: 211 943 PP MW PG Comments/ CSG USDW' Est Rkb Air Gap 0' Wtr.Dpth 8.4 8.6 9.8 123'pen 138' t t H ).5#N80HC Welded Drive Sz>a 16 ROP/Gas log Cond/Drive to ru Retrvable tbg plug @ 1.1I00' IF : Chemical inj Mandrel±500' /4"SS 0.049 wall chem inj line 27/8"6.5L.802.347"ID API EUE 8rd M SCSSV±565' L EXPRO 04-29-2011 • 8.6 9.0 16.0 Triple combo 30 45.5#L80 RTC 13 1/2" 055' E 10 3/4" Pump 42 bbls Mud Clean II with red dye. Pump 3 bbls F LOT#2 @ 3352' MD 14.7 ppg emw water. Test lines to 2k psi Cmt to surf @ 520 bbls. Poetential Inj zone Pump 564 bbls 12 ppg cmt. Pump 5 bbls water to clear lines. Switch to rig pumps to displace w/45 bbls 8.8 pp mud. Floats heldUnsting. CIP @ 21:000 UK +5000n,4 LOT#1 15.0 pg emw 1 hrs-R/u BJ for Cmt Job PJSM for Cmt Job-Tst Surf Lines 4000 Psi- OK 0.25 hrs-Repair BJ H2O Line(cement plug in line) 1 hrs Mx& 10.2 ppg NaCL/KCL Pump 30 Bbl 1OPPG Spacer&Mx 3 Bbls Cmt-(Packing over/heating- �./ S/dn&Observe) 2.25 hrs-Mx&Pump 126.5 Bbl Lead to Slurry wt 13.5 PPG-Follow w/52 Bbls Tail to Slurry Wt 15.8 PPG Shut/dn-Drop Plug &Pump 5 Bbls H2O-S/dn&Displace w/Rig Pump-PI • :1 •-• W z� Calculated Displacement-Press/up 1000 Psi(1900)&hold 5 Min- Bleed/off-Floats HeIdCIP=06:05 HrsNote: Btm Shoe @ 8024'&Float Collar @ 7938' EXPRO 05 19 2011 n FIT#3 13.5 ppg emw i 8.6 9.2 13.5 Quad Combo plus 8024' 2 <;29.7#L80 BTC top/Vam btn 9 7/8" z¢.`' [8021' 7 5/8. 20:::::.''' s• ;[¢2 j)B T 5-1/2" 17# x 7-5/8"29.7-39#; 2¢ it•. [((2 80 KSI Hyd Flex Lock Liner hanger w/ 2¢ 't� I [¢2 ZXP LT Packer 2 l 2 TOL 7892"MD,7888'TVD 1.875"XN nipple @ 9687.14' z 6.174 Rio. Cut string @±9689' 2¢ z¢;? '[¢2 Baker Model D Pkr @ 9666'(9659'TVD) 2 .:iiiii [¢2 ;; - Top Perforation (RDX) 9705 " '"' ::::::= Bottom Perforation (6 SPF) 9724.85' 2¢ '[¢2 (9698' 9717' TVD) 2¢. :[¢2 2 fie::;:;:;`: f W Top Perforation (RDX) 10008 15 ='! Bottom Perforation (6 SPF) 10049.17 NOTE: Test guns DID NOT release. -"`T, iy (10000' 10040' TVD) Cut string @±9689'. String fell. ¢ : ::::::::102 2�( ?�(z < 2T.: ik> " �>''.[70z Estimated top of fish 10240'MD 2¢'!'''' [¢2 ¢./// ' (¢ $ I � :.: [0 z 2 I ,{ ;[�¢l PBTD 10565'DPM .................... Drill 2 z CBL EXPRO 05 19 2011 8.6 11.4 165 Quad Combo plus 10680' ## 2 "" 12.6#L80 TC11 6 3/4" 10667' 4 1/2" Test to 4500 psi. Mix and pump 40 bbls sealbond sweep at 12.5ppg 672 sx 141.2 slurry Class G+1.2%BA-56,3%KCL, .5%%EC-1, .4% CD-32,.2%A-2,.2%R-3, .05%Static Free, 1 ghs FP-6L.Yld 1.18 cu fUsk, 9.82'marker jl @ 8324' 15.8 ppg 4.951 gl H2O sk,3.32 pumping time.79.216 bbls water to mix. Landing collar 10591', Float collar(@ 10633' Displace w 11.4 ppg mw. Tagged @ 10565'DPM Csg shoe 10676' • • • • , ,, ii 81i1 ii-7.- 11 i t p 18\ 1 LA\ 1 i 1 \ /6 I SEAN PARNELL,GOVERNOR �T , ALASKA OIL AND ` 7 1 333 W.7th AVENUE,SUITE 100 CONSERVATION COMMISSION { ANCHORAGE,ALASKA 99501-3539 PHONE (907)279-1433 FAX (907)276-7542 December 16, 2011 Mr. Stephen L. Ward Operations Manager—Production Buccaneer Resources, LLC 952 Echo Lane, Suite 220 Houston, Texas 77024 Re: Surface Safety Valve Variance Request Kenai Loop#1 (PTD 2110430) Dear Mr. Ward: By electronic mail received December 12, 2011 Buccaneer Resources, LLC (Buccaneer), pursuant to 20 AAC 25.265(o)(1), requested from the Alaska Oil and Gas Conservation Commission (AOGCC) a variance to 20 AAC 25.265(c)(1) for Kenai Loop Well #1. The AOGCC hereby GRANTS Buccaneer's request for variance. 20 AAC 25.265(c)(1) requires that a well's surface safety valve (SSV) be located within the vertical run of the well's production tree. Buccaneer proposes to use a production tree for Kenai Loop Well #1 which positions the SSV on the tree's wing through which well production exits to the flowline. This allows the SSV to remain in the produced fluid stream while providing concurrent well bore access. Buccaneer indicates this tree design was chosen for several reasons: enhancing the efficiency and safety of maintenance and servicing of the SSV; and increasing the efficiency of well intervention while not increasing the potential for a release to the environment and not compromising the effectiveness of the well's safety system. As additional justification, Buccaneer notes that Kenai Loop Well #1 is equipped with two master valves in the vertical run below the tree's wing, and a subsurface safety valve capable of shutting in the well if surface safety valve system becomes disabled. 20 AAC 25.265(o)(1) authorizes AOGCC to approve a variance from a 20 AAC 25.265 requirement if the variance results in at least equally effective compliance. The AOGCC finds that Buccaneer's request for Kenai Loop Well #1 meets this regulato standard. Since - IT ,i ,, a ILL A Daniel T. Seamount, Jr. or. orman Chair, Commissioner Co missioner • • • • • December 12, 2011 Alaska Oil and Gas Conservation Commission 333W 7th Ave., Ste 100 Anchorage, AK 99501 ATTN: Mr. James B. Regg RE: Request for approval of Buccaneer Alaska Operations, LLC (BAO)KL#1 well SSV placement per 20 AAC 25.265. Mr.Regg, Currently, BAO's KL#lwell is anticipated to begin producing later this month with several additional wells planned over the next three years. The well has a SSV installed on the outer wing valve of the tree. The SSV conforms to the requirements of 20 AAC 25.265 except for 20 AAC 25.265 (c) (1)which states "the surface safety valve must be located within the vertical run of a well's tree". The SSV on the KL#1 well is currently placed on the outer wing valve of the tree. BAO requests a variance from 20 AAC25.265 for the following reasons: 1) There is a risk that having the SSV in the vertical run of the tree,that during wireline or electric line work on the well the SSV could be inadvertently closed and the wire and tools lost in the well causing probable shut-in of the well. Because this is the only well currently operated at the KL 1 pad, shut-in will cause loss of revenue and penalties for contractural responsibilities. 2) This well design has 2 master valves, 2 wing valves (outer wing is SSV) and a sub- surface safety valve in the well. Because the SSV is on the outer wing valve,the 2 master valves and the inner wing valve can be used as safety blocks for the repair of the SSV when needed. This tree design was chosen for safety and efficiency of well intervention while not increasing any potential for a release to the environment and not compromising the effectiveness of the well's safety system. 3) The SSV being on the wing valve allows for placement of an inner string or velocity string if needed later in the life of the well to produce and still have a functional SSV. The SSV in the vertical position (on the master valve)will have the velocity string run through the SSV and render if inoperable and thereby requiring a SSV on the wing valve. BOA requests a variance from 20 AAC 25.265 to allow for the SSV to be installed on the outer wing valve of the tree instead of in the vertical run of the tree. If you have any questions please contact: Stephen L. Ward Operations Manager—Production Buccaneer Resources 952 Echo Lane, STE 420 Houston, TX 77024 (o) 713-468-1678 (c) 832-444-6071 i • • • APPEN I)I X A SSV equipment installed on KL#1 well What is its maximum allowable operating pressure for the hydraulic circuit? Actuator MWP 3500 psi What is the volume of fluid required to actuate the valve? Swept volume displacement: 1 pint What hydraulic pressure is required to crack the valve open with a differential pressure across the valve of 4500 psi? Minimum actuator supply pressure to open valve at 4500 psi 892 psi 2-9/16" 5K: 1013 psi actuator supply pressure to open valve at 4500 psi. Volume Displacement 29.71 Cubic inches or 1.03 pint • ` a • +1 • • GE Oil & Gas Actuators Pressure Control Model RA Hydraulic Actuator The Model RA(Reverse Acting)Hydraulic Actuator is available Top Shaft/Indicator Rod in sizes ranging from 1-13/16"through 7-1/16"and pressure Lock Open• ratings ranging from 2,000 psi through 15,000 psi.The RA is { Thread Protector designed with safety in mind and is adaptable to all major Optional manufacturers'gate valves. In addition,self-contained Relief Valve •, Piston Head Plate systems are available. ' �, -� The RA actuator is designed to operate when hydraulic Spring Plate . pressure is applied between a stationary piston and a ' ' /J_ movable cylinder tube,causing the tube and spring to move Cylinder downward,while opening a reverse-acting gate valve.When ''-`. ,: ). Spring hydraulic pressure is vented or lost,the helical spring returns 1 , Load Plate the actuator to the fully up(closed)position.This fail-safe . 0 1 return action occurs independent of valve pressurization.The r V, Connector and actuator spring housing is a sealed unit which eliminates F ` I Stud Assembly internal corrosion caused by atmospheric contamination, . 'i .l�._ k ' thereby: ,• ,� Stem • Reducing costly down time, Sight class r , e • Reducing related maintenance, repair and spare �' w t parts costs,and - Packing Retainer • Significantly extending actuator life i� Attachment Flange Features— 1 1 • Safety - Spring housing is a welded construction that prevents accidental release of preloaded spring �_ ,4. Bonnet ,.. ::::s , ,ri- Visual position indicator rod 1 - No harmful emissions • Designed for long service life - ''`� • -= - Easy to repair /' IP _ - Optional overpressure protection / �' � c.; - Containment protection for longer service life • Modular design h - Adaptable to all major manufacturers'gate valves j I Accessories-- • • Manual self-contained control system for remote ----` P applications(PC#04-0403) • Hold open devices available in both manual and positive '• 795-7695 configurations with non-fusible,fusible and high thrust fusible options • Hydraulic override • Electric limit switches • Clear stem protectors 406 , • Electric powered control system • Fusible plug accessory available to close valve in case of fire r • . 0 0 Model RA Hydraulic Actuator Specifications- Model RA-3,RA-4,RA-6.RA-8,RA-12 Applicable Valve Sizing 1-13/16"thru 7-1/16" API Specification API 6A Material Class AA,Non-Retained Fluid 1r PR2 Annex F Temperature* -50°F to+150°F 1-46°C to+66°CI Maximum Working Pressure" 3500 psi 1241 borsi P Maximum Test Pressure 5,250 ps,1362 bars! I. * Temperature:-75'F l-59"C)upon request ** Maximum Working Pressure:Higher pressures availob'a upon request Model RA Sizing Chart for API 6A- Valve Actuator Piston Eff. Maximum Volume Bore psi Model Area Actuator Stroke Displacement 10,000 1-13/16": 15,000 : RA-3-11 11.34 in2 4.50" 29.71 3.000 i 1 i 5,000 i 2-1/16" ? 10.000 i RA-3-11 11.34 in2 4.50" 29.71 in3 15,000 : • 20,000 • I I. 6 3.000 r 3-1/8" ' 5,000 :RA-3-11 11.34 in2 4.50" 41.84:n' 10,000 i 94-3-11 11.34 in2 4.50" 41.84;13 3-1/16" 15,000 i RA-4-18 18.41 in2 6.00" 67.93 in= 20,000 i RA-6-29 . 28.91 in2 8.55" 106.68 in' 3.000 i RA-4-11 11.34 in2 6.00" 55 57 5,000 RA-4-18 18.41 in2 6.00" 90.21'1' 4-1/16" 10,000 i �_ 15,000 RA-6-29' 28.91 in2 8.55" 141.66 in' `-!1 'w`7 t 20,000 i RA-8-48 I 48.50 in2 8.55" 237.65 in` 11.4 3,000 RA 4 11: 11.34 in2 6.00" 68.04 __ 5,000 i RA-4-18 i 18.41 in' 6.00" 110.46 in' 5-1/8.. ■ 10,000 i RA-6-29 28.91 in2 8.55" 1/3.46 in' - 15000 94-8-42 1 42.41 in2 1000" 254.46 in3 ._ ..... 6-3/8" 5,000 RA-6-22 : 21.99 in2 8.55" 159.87 ir' 10,000 RA-8-22' 21.99 in2 10.00" 159.87 in= ■ir,,.. # 5,000 RA-6-22 21.99 in2 8.55" : 186.92 in' • 7-1/16" RA-8-22 21.99 in2 10.00" 186.92 in 10000 RA-8-42 4241 in2 10.00" 360.49 in" I I • 2q5-269 cosp/06_, GE imagination at work ,_,,{ ;, incl q,,, ii=, 1;11, 1 GE©2011.Ail rights reserved. 03/11,PC#04-0404 rev 2 z�\- o1 3 •BUCCANEER A L A S K A November 9,2011 RECENED Mr. Daniel Seamount,Chair NOV S Alaska Oil and Gas Conservation Commission 333 West 7th Avenue,Suite 100 Anchorage,AK 99501 Atoka Oil&has C4�C1 ,C® ss'on e RE: Kenai Loop#1 Well Test Report May 17th, 2011 to May 29th, 2011 Dear Commissioner Seamount, Enclosed please find Well Test Report from May 17—29, 2011,for Kenai Loop#1 Well. If you have any questions, please call me at(713)468-1678. Regards, 'jay K. ngia, PhD VB/ph Enclosure: Well Test Report for Kenai Loop#1 952 Echo Lane,Suite 420,Houston,TX 77024 Office: (713)468-1678 Fax: (713)468-3717 r 0 t ��� �sB Buccaneer Alaska Operations LLC T7 ,,,, BUCCANEER E N E R +G Y ,4 ' i - ;,' '; '.,-,.. Kenai Loop # 1 �Y✓y .n Well Test Report Ma 17th 2011 to Ma 29th, 2011 Y Y 1 k i I R 1 ,r i b IR C3 Is i gi'X6- WELLTESTIN6 & COMMISSIONING • EXPRO TABLE OF CONTENTS Content Page Expro Disclaimer 3 Gas Calculation Method 4 Well Test Report 5 Well Test Plots 16 Separator Charts 17 Job Log 20 i • EXI:21:1 C:3 WELLTESTING&COMMISSIONING DIS CLAIMER Expro Well Testing will use its best efforts to furnish customers with accurate information and interpretations as a part of, and incident to, the services provided. However, Expro cannot and does not warrant the accuracy or correctness of such information and interpretations. Under no circumstances should any such information or interpretation be relied upon as the sole basis for any decision regarding drilling, completion, production, financing or any procedure involving any risk to the safety of any drilling venture, drilling rig or its crew or any other third party. These calculations are based on certain data, assumptions and applied mathematical methods. Inaccurate well data, changing well conditions, tolerance variations of mechanical components, mechanical malfunctions and other factors may affect these calculations. In no event will Expro be liable for failure to obtain any particular results or for any damages, including but not limited to, indirect, special or consequential damages, whether due to negligence or otherwise arising out of or in connection with such use of data, calculations, recommendations or opinions provided by Expro. • • (4 ) . WELLTESTING&COMMISSIONING Method of Gas Rate Measurement Measurement by Orifice Plate:- Qg=C*Sqr( Hw*Pf) where:- C = Fpb*Fb*Fg*Ftf*Ftb*Fr*Y2*Fm*Unit Conversion Factor Qg = Corrected Gas Flow Rate. C = Orifice flow constant. Hw = Differential pressure across orifice plate in inches water gauge at 60 deg.f Pf = Absolute static pressure. Fpv = Supercompressibility factor(corrected for N2,H2S and CO2 effects). Fb = Basic orifice factor. Fg = Specific gravity factor. Ftf = Flowing temperature factor. Ftb = Temperature base factor. Fpb = Pressure base factor. Fr = Reynolds number factor= 1. Y2 = Expansion factor for downstream pressure tap. Fm = Manometer factor= 1. Unit Conversion Factor = Factor changing flow rate units. We can unite Fu=Ftb*Fpb*Unit Conversion Factor. (Fu factors are given in the table for different standard conditions and flow rate units). Cl =Fu*Fg(theoretically constant during the test). C2= Fpv*Fb* Ftf*Y2 Then C=C1*C2 Table of Fu Factors Rate of Flow units Standard conditions Cu Ft/hours Cu Ft/day M3/hour M3/day 14.73 psi /60 deg F. 1.00 24.00 0.03 0.68 760 mm Hg/0 deg C. 0.95 22.76 0.03 0.64 760 mm Hg/15 deg C. 1.00 24.01 0.03 0.68 750 mm hg/15 deg C. 1.01 24.33 0.03 0.69 Ri JO:nri[ u COMPANY: Buccaneer Alaska Operations LLC • EXPRO AMERICAS LLC Expgd FIELD: Kenai SURFACE WELL TESTING REPORT LEASE: Kenai WELL#: Kenai Loop#1 CO.REP.: Craig Rang w. N, 5/2312011 10:15 Preparing to drop bar and fire guns 2700 58 3500 5/23/2011 10:20 Drop bar and fire guns 2750 58 3500 5/23/2011 10:22 WHP Increasing 2950 58 3500 5/23/2011 10:24 WHP Increasing 3000 58 3500 5/23/2011 10:27 Open well to flare on 16/64 adj.choke 3250 60 3500 16 ill 5/23/2011 10:30 Flowing Nitrogen to flare 3350 60 _ 3500 16 0.973 Bleed off annulus to 2500psi. Increase choke 5/23/2011 10:35 to 18/64 3350 60 2500 16 0.973 5/23/2011 10:40 Flowing Nitrogen to flare 3250 _ 60 2500 18 0.973 5/23/2011 10:45 Flowing Nitrogen to flare 3275 60 2500 18 0.973 Flowing Nitrogen to flare. Increase choke to 5/23/2011 10:50 20/64 3300 60 2500 18 0.973 5/23/2011 11:00 Flowing Nitrogen to flare 3280 60 2500 20 0.973 "Fluids to surface••.Choke plugging.Increase 5/23/2011 11:05 choke to 28/64 3900 58 _2500 20 0.973 5/23/2011 11:10 Divert flow to tank.Fluid weight=9.9ppg 3850 57 2500 28 100 0.973 9.9 250000 "Gas to surface" 5/23/2011 11:25 Divert flow through separator 3900 58 2500 28 0.973 5/23/2011 11:30 Orifice meter In service.CO2=0%;H2S=Oppm 3900 60 2500 28 0.973 Shut well in at Choke Manifold 5/23/2011 12:00 3700 63 2500 28 105 76 42 2.500 0.563 4070.84 84.81 336.00 7.00 5/23/2011 12:05 Monitoring shut in pressure 4400 63 2500 84.81 7.00 5/23/2011 12:10 Monitoring shut in pressure 4425 63 2500 84.81 7.00 5/23/2011 12:15 Monitoring shut in pressure 4425 65 2500 84.81 7.00 5/23/2011 12:20 Monitoring shut in pressure 4425 65 2500 84.81 7.00 5/23/2011 12:25 Monitoring shut in pressure 4425 65 2500 84.81 7.00 5/23/2011 12:30 Monitoring shut in pressure 4425 65 2500 84.81 7.00 5/23/2011 12:35 Monitoring shut in pressure 4425 65 2500 84.81 7.00 Page 1 COMPANY.: Buccaneer Alaska Operations LLC 11 -E a FIELD: Kenai EXPRO AMERICAS LLC }CPILIO I SURFACE WELL TESTING REPORT LEASE: Kenai WELL#: Kenai Loop#1 CO.REP.: Craig Rang Monitoring shut in pressure 5/2312011 12:40 4425 65 2500 84.81 7.00 Monitoring shut in pressure 5/2312011 12:45 4425 65 2500 84.81 7.00 Monitoring shut in pressure 4425 65 2500 84.81 7.00 512312011 12:50 - Monitoring shut in pressure 4425 65 2500 84.81 7.00 • 512312011 12:55 - Open well on 16164 5123/2011 13:00 4425 65 2650 16 84.81 7.00 5/23/2011 13:15 Flowing well through separator to flare 4375 64 2640 16 20 12 64 2.500 0.560 925.55 94.45 7.00 CO2=0%;H2S=Oppm. 5/2312011 13:30 Increase choke to 22/64 adjustable 4300 64 2620_ 16 20 10 64 2.500 - 0.560 845.52 103.26 7.00 Flowing well through separator to flare 5/2312011 13:45 4225 64 2630 22 60 46 64 2.500 0.560 2730.12 131.70 7.00 Flowing well through separator to flare 5/2312011 14:00 4225 66 2660 22 58 48 59 2.500 0.560 2706.63 159.89 7.00 New gas gravity=.561 5/2312011 14:15 4225 66 2670 22 57 48 57 2.500 0.561 2690.94 187.92 7.00 Flowing well through separator to flare 512312011 14:30 4250 67 2700 22 66 47 57 2.500 0.561 2643.87 215.46 7.00 Flowing well through separator to flare 5/23/2011 14:45 4250 67 2700 22 55 46 58 2.500 0.561 2594.16 242.48 7.00 Flowing well through separator to flare 5/23/2011 15:00 4250 65 2720 22 50 44 60 2.500 0.561 2438.91 267.89 7.00 Rock Choke 4275 68 2720 22 45 40 65 2.500 0.561 2221.81 291.03 7.00 5/2312011 15:15 - 5/23/2011 15:30 Flowing well through separator to flare 4225 68 _ 2720 22 63 58 56 2.500 0.561 3084.95 323.17 7.00 • Rock Choke 5/2312011 15:45 4255 67 2720 22 56 52 62 2.500 0.561 2768.04 352.00 7.00 Flowing well through separator to flare 5/2312011 16:00 4300 68 2720 22 48 48 61 2.500 0.561 2505.88 378.10 7.00 - Rock Choke 5/23/2011 16:15 4300 67 2725 22 45 41 65 2.500 0.561 2249.60 401.54 7.00 5/23/2011 16:30 Flowing well through separator to flare 4150 67 2725 22 72 70 57 2.500 0.561 3579.87 438.83 7.00 Flowing well through separator to flare 5/23/2011 16:45 4150 67 2730 22 72 68 54 2.500 0.561 3535.68 475.66 7.00 Start methanol injection @ upstream choke 5/2312011 17:00 Injection rate @ 51 gallons/d 4150 67 2780 22 73 68 56 2.500 0.561 3548.88 512.63 7.00 Decrease choke to 18/64 adjustable 5123/2011 17:15 4075 67 2820 22 80 88 52 2.500 0.562 4217.94 556.56 7.00 Flowing well through separator to flare 5/23/2011 17:30 4300 68 2820 18 48 47 67 2.500 0.562 2464.81 582.24 7.00 Page 2 COMPANY: Buccaneer Alaska Operations LLC ircnrr� FIELD: Kenai EXPRO AMERICAS LLC jM3C;PFtt� o r� SURFACE WELL TESTING REPORT LEASE: Kenai WELL#: Kenai Loop#1 CO.REP.: Craig Rang Flowing well through separator to flare 70 2820 18 47 49 68 2.500 0.562 2492.31 608.20 7.00 5/23/2011 17:45 Flowing well through separator to flare 4300 72 2840 18 48 48 68 2.500 0.562 2486.48 634.10 7.00 5/23/2011 18:00 5/2312011 18:15 Flowing well through separator to flare 4300 72 2840 18 47 49 68 2.500 0.562 2492.31 660.06 7.00 5/2312011 18:30 CO2=0%;H2S=Oppm 4300 73 2840 18 47 48 68 2.500 0.562 2466.55 685.76 7.00 • 512312011 18:45 Flowing well through separator to flare 4330 73 2840 18 46 47 67 2.500 0.562 2423.02 710.99 7.00 Flowing well through separator to flare 4330 73 2850 18 46 48 67 2.500 0.562 2448.86 736.50 7.00 5/23/2011 19:00 New gas gravity=.560 4327 70 2850 18 46 47 65 2.500 0.560 2432.03 761.84 7.00 5/23/2011 19:15 5/2312011 19:30 Flowing well through separator to flare 4229 66 2850 18 47 46 63 2.500 0.560 2430.37 787.15 7.00 512312011 19:45 Flowing well through separator to flare 4231 66 2850 18 48 47 62 2.500 0.560 2479.15 812.98 7.00 5/23/2011 20:00 Flowing well through separator to flare 4260 64 2860 18 48 46 61 2.500 0.560 2454.87 838.55 7.00 Flowing well through separator to flare 65 2860 18 45 43 62 2.500 0.560 2313.05 862.64 7.00 5/23/2011 20:15 Flowing well through separator to flare 4245 65 2860 18 44 42 62 2.500 0.560 2266.55 886.25 7.00 5/23/2011 20:30 Rock Choke 68 2870 18 41 43 63 2.500 0.560 2231.95 909.50 7.00 5/2312011 20:45 Increase Methanol injection rate to tik 76 512312011 21:00 gallons I day 4250 68 2870 18 41 42 62 2.500 0.560 2207.82 932.50 7.00 Increase choke to 19/64ths adjustable 64 2870 18 41 43 60 2.500 0.560 2238.57 955.82 7.00 • 512312011 21:15 5/23/2011 21:30 Flowing well through separator to flare 4208 63 2870 19 49 50 55 2.500 0.560 2596.01 982.86 7.00 Flowing well through separator to flare 62 2880 19 55 51 56 2.500 0.560 2740.37 1011.41 7.00 5/23/2011 21:45 5123/2011 22:00 Flowing well through separator to flare 4201 62 2880 19 55 53 56 2.500 0.560 2793.99 1040.51 7.00 5/23/2011 22:15 Flowing well through separator to flare 4198 62 2890 19 60 54 56 2.500 0.560 2920.18 1070.93 7.00 Flowing well through separator to flare 4199 61 2900 19 60 55 57 2.500 0.560 2944.32 1101.60 7.00 5/23/2011 22:30 5/23/2011 22:45 Flowing well through separator to flare 4202 61 2900 19 60 55 58 2.500 0.560 2941.36 1132.24 7.00 Flowing well through separator to flare 4203 61 2920 19 60 56 59 2.500 0.560 2965.19 1163.13 7.00 5/2312011 23:00 _ 512312011 23:15 Flowing well through separator to flare 4200 61 2930 19 60 56 60 2.500 0.560 2962.22 1193.98 7.00 Page 3 Illit purr_nn�cr. COMPANY: Buccaneer Alaska Operations LLC EXPRO AMERICAS LLC XPlmC>f t ;. r . FIELD: Kenai SURFACE WELL TESTING REPORT LEASE: Kenai WELL#: Kenai Loop#1 CO.REP.: Craig Rang Flowing well through separator to flare 5/23/2011 23:30 4201 61 2930 19 60 57 60 2.500 0.560 2988.75 1225.12 7.00 H2S=0 ppm,CO2=0% 5/23/2011 23:45 4200 61 2650 19 60 58 60 2.500 0.560 3015.01 1256.52 7.00 512412011 0:00 Flowing well through separator to flare 4201 61 2680 19 60 57 61 2.500 0.560 2985.76 1287.62 7.00 Flowing well through separator to flare 5124/2011 0:15 4212 60 2680 19 60 57 62 2.500 0.560 2982.78 1318.69 7.00 40 Flowing well through separator to flare 5124/2011 0:30 4216 60 2680 19 60 56 62 2.500 0.560 2956.31 1349.49 7.00 5/24/2011 0:45 Flowing well through separator to flare 4226 58 2680 19 60 55 62 2.500 0.560 2929.60 1380.01 7.00 Flowing well through separator to flare 5/2412011 1:00 4223 58 2685 19 60 54 63 2.500 0.560 2899.76 1410.21 7.00 5/24/2011 1:15 Flowing well through separator to flare 4223 58 2685 19 60 54 63 2.500 0.560 2899.76 1440.42 7.00 5/2412011 1:30 Flowing well through separator to flare 4219 58 2690 19 60 54 62 2.500 0.560 2902.65 1470.65 7.00 5/2412011 1:45 Flowing well through separator to flare 4224 57 2690 19 60 55 62 2.500 0.560 2929.60 1501.17 7.00 Gas gravity=.560 5/24/2011 2:00 4214 57 2700 19 60 55 62 2.500 0.560 2929.60 1531.69 7.00 _ 5/24/2011 2:15 Flowing well through separator to flare 4233 58 _ 2700 19 65 57 62 2.500 0.560 3081.37 1563.78 7.00 5/24/2011 2:30 Flowing well through separator to flare 4235 58 2705 19 60 54 64 2.500 0.560 2896.88 1593.96 7.00 512412011 2:45 Flowing well through separator to flare 4232 58 2705 19 55 53 64 2.500 0.560 2771.75 1622.83 7.00 512412011 3:00 Flowing well through separator to flare 4242 58 2710 19 60 53 64 2.500 0.560 2869.74 1652.73 7.00 • 5/24/2011 3:15 Flowing well through separator to flare 4244 58 2710 19 55 51 64 2.500 0.560 2718.57 1681.04 7.00 Flowing well through separator to flare 5/24/2011 3:30 4257 58 2575 19 55 50 65 2.500 0.560 2688.93 1709.05 7.00 5/24/2011 3:45 Flowing well through separator to flare 4258 58 2575 19 50 48 66 2.500 0.560 2535.27 1735.46 7.00 Flowing well through separator to flare 5124/2011 4:00 4260 58 2575 19 50 48 66 2.500 0.560 2535.27 1761.87 7.00 Flowing well through separator to flare 5/24/20114:15 4260 58 2575 19 50 47 65 2.500 0.560 2510.99 1788.03 7.00 5/24/2011 4:30 Flowing well through separator to flare 4257 58 2575 19 50 47 65 2.500 0.560 2510.99 1814.18 7.00 5/24/2011 4:45 Flowing well through separator to flare 4253 58 2575 19 50 47 65 2.500 0.560 2510.99 1840.34 7.00 Gas gravity=.560 5/24/2011 5:00 4251 57 2565 19 50 47 64 2.500 0.560 2513.47 1866.52 7.00 Page 4 PuCrnrJLC� COMPANY: Buccaneer Alaska Operations LLC EXPRO AMERICAS LLC 40 IM,C9=11=11C31 h FIELD: Kenai SURFACE WELL TESTING REPORT LEASE: Kenai WELL#: Kenai Loop#1 CO.REP.: Craig Rang Flowing well through separator to flare 5/24/20115:15 4245 57 2565 19 50 _ 47 64 2.500 0.560 2513.47 1892.70 7.00 5124/2011 5:30 Flowing well through separator to flare 4238 57 2560 19 50 47 _ 64 2.500 0.560 2513.47 1918.89 7.00 Flowing well through separator to flare 5/24/2011 5:45 4236 57 2560 19 50 47 64 2.500 0.560 2513.47 1945.07 7.00 5124/2011 6:00 H2S=0 ppm,CO2=0% 4220 57 2565 19 49 45 63 2.500 0.560 2442.33 1970.51 7.00 • 5/24/2011 6:15 Flowing well through separator to flare 4205 67 2565 19 49 45 62 2.500 0.560 2444.75 1995.98 7.00 Flowing well through separator to flare 512412011 6:30 4161 57 2560 19 49 45 64 2.500 0.560 2439.92 2021.39 7.00 Flowing well through separator to flare 5/24/2011 6:45 4050 57 2560 19 48 43 65 2.500 0.560 2363.55 2046.01 7.00 Flowing well through separator to flare 5/24120117:00 4248 58 2660 19 44 43 67 2.500 0.560 2282.32 2069.79 7.00 Flowing well through separator to flare 5124/20117:16 4153 59 2555 19 43 44 _ 67 2.500 0.660 2289.14 2093.63 7.00 5/2412011 7:30 Flowing well through separator to flare 4256 58 2555 19 42 45 67 2.500 0.560 2295.06 2117.54 7.00 612412011 7:45 Increase choke to 20/64ths adjustable 4050 58 2555 19 44 40 68 2.500 0.560 2198.56 2140.44 7.00 New gas gravity=.561 5/24/2011 8:00 4256 58 2550 20 46 43 68 2.500 0.561 2316.62 2164.57 7.00 5/24/2011 8:15 Flowing well through separator to flare 4257 58 2545 20 46 43 68 2.500 0.561 2316.62 2188.70 7.00 5/24/2011 8:30 Flowing well through separator to flare 4257 59 2535 20 46 43 67 2.500 0.561 2318.89 2212.86 7.00 Flowing well through separator to flare 512412011 8:45 4259 60 2515 20 46 42 68 2.500 0.561 2289.34 2236.71 7.00 • 5/24/2011 9:00 Flowing well through separator to flare 4257 60 2445 20 46 42 68 2.500 0.561 2289.34 2260.55 7.00 Flowing well through separator to flare 5/24/2011 9:15 4259 60 2460 20 46 41 68 2.500 0.560 2261.73 2284.11 7.00 5124/2011 9:30 Flowing well through separator to flare 4263 60 2440 20 46 41 69 2.500 0.560 2259.53 2307.65 7.00 5124/20119:45 Flowing well through separator to flare 4262 61 2420 20 46 41 69 2.500 0.560 2259.53 2331.19 7.00 5/24/2011 10:00 CO2=0%;H2S=Oppm 4261 61 2390 20 46 41 70 2.500 0.560 2257.33 2354.70 7.00 5/24/2011 10:15 Flowing well through separator to flare 4261 61 2360 20 46 41 70 2.500 0.560 2257.33 2378.21 7.00 5/24/2011 10:30 Flowing well through separator to flare 4262 61 2320 20 46 41 71 2.500 0.561 2255.13 2401.70 7.00 Flowing well through separator to flare 5/24/201110:45 4250 61 2300 20 46 40 71 2.500 0.561 2227.28 2424.91 7.00 Page 5 ■ ni�rr n wr r a COMPANY: Buccaneer Alaska Operations LLC ZIE EXPRO AMERICAS LLC .XPR�O FIELD: Kenai SURFACE WELL TESTING REPORT LEASE: Kenai WELL#: Kenai Loop#1 CO.REP.: Craig Rang 5/24/2011 11:00 Flowing well through separator to flare 4222 62 2280 20 46 40 71 2.500 0.561 2227.28 2448.11 7.00 5/24/2011 11:15 Flowing well through separator to flare 4233 62 2280 20 46 42 69 2.500 0.561 2287.10 2471.93 7.00 5124/2011 11:30 Flowing well through separator to flare 4160 62 2280 20 46 40 71 2.500 0.561 2287.10 2495.75 7.00 5/24/2011 11:45 Gas gravity=.561 4226 62 2280 20 46 40 71 2.500 0.561 2314.36 2519.86 7.00 5124/2011 12:00 CO2=0%;H2S=Oppm 4221 62 2280 20 46 44 68 2.500 0.561 2343.60 2544.27 7.00 5/2412011 12:15 Flowing well through separator to flare 4197 62 2250 20 46 40 71 2.500 0.561 2343.60 2568.69 7.00 Flowing well through separator to flare 5/24/2011 12:30 4122 62 2280 20 46 40 71 2.500 0.561 2345.89 2593.12 7.00 5/24/2011 12:45 Flowing well through separator to flare 4215 62 2280 20 46 40 71 2.500 0.561 2372.59 2617.84 7.00 Shut well in @ tester valve. 5/24/2011 13:00 Shut in choke manifold 4227 62 2290 20 46 45 67 2.500 0.561 2372.59 2642.55 7.00 5/2412011 14:00 Monitoring pressure at choke manifold 3720 63 2642.55 7.00 5/24/2011 15:00 Monitoring pressure at choke manifold 3718 64 2642.55 7.00 5124!2011 16:00 Monitoring pressure at choke manifold 3718 68 2642.55 7.00 512M2011 17:00 Monitoring pressure at choke manifold 3718 67 2642.55 7.00 5/24/2011 18:00 Monitoring pressure at choke manifold 3720 64 2642.55 7.00 5/24/2011 19:00 Monitoring pressure at choke manifold 3722 62 2642.55 7.00 512412011 20:00 Monitoring pressure at choke manifold 3725 60 2642.55 7.00 5/24/2011 21:00 Monitoring pressure at choke manifold 3726 60 2642.55 7.00 5/24/2011 22:00 Monitoring pressure at choke manifold 3730 60 2642.55 7.00 5124!2011 23:00 Monitoring pressure at choke manifold 3736 58 2642.55 7.00 5/25/2011 0:00 Monitoring pressure at choke manifold 3737 58 2642.55 7.00 5/25/2011 1 00 Monitoring pressure at choke manifold 3739 56 2642.55 7.00 5125/2011 2:00 Monitoring pressure at choke manifold 3742 56 2642.55 7.00 Monitoring pressure at choke manifold , 7.00 5125/20113:00 I 1 3749 I 55 I I I I I i Page 6 Rt.CC n.NE[� COMPANY: Buccaneer Alaska Operations LLC zr EXPRO AMERICAS LLC .3C:PR0 FIELD: Kenai SURFACE WELL TESTING REPORT LEASE: Kenai WELL#: Kenai Loop#1 CO.REP.: Craig Rang 512512011 4:00 Monitoring pressure at choke manifold 3758 55 2642.55 7.00 512512011 5:00 Monitoring pressure at choke manifold 3764 53 2642.55 7.00 512512011 6:00 Monitoring pressure at choke manifold 3772 56 2642.55 7.00 Monitoring pressure at choke Suspected leak 5125/2011 7:00 at Tester Valve 3832 57 2642.55 7.00 III 512512011 8:00 Monitoring pressure at choke manifold 3930 59 2642.55 7.00 Start pressuring up annulus to cycle Tester 5125/2011 9:00 valve 4140 61 2642.55 7.00 5/2512011 9:10 Monitoring pressure at choke manifold 4250 62 2642.55 7.00 5/2512011 9:20 Monitoring pressure at choke manifold 4340 62 2642.55 7.00 5/2512011 9:22 Monitoring pressure at choke manifold 4362 62 2642.55 7.00 5125/2011 9:25 Monitoring pressure at choke manifold 4391 62 2642.55 7.00 5125/2011 9:30 Monitoring pressure at choke manifold 4395 62 2642.55 7.00 5/25/2011 9 37 Monitoring pressure at choke manifold 4399 _ 62 2642.55 7.00 5/25/2011 9:45 Monitoring pressure at choke manifold 4401 62 2642.55 7.00 5/2512011 10:00 Monitoring pressure at choke manifold 4412 62 2642.55 7.00 5/2512011 10:18 Monitoring pressure at choke manifold 4422 62 2642.55 7.00 • 5/25/2011 10:23 Monitoring pressure at choke manifold 4422 62 2642.55 7.00 5/25/2011 10:40 Open well on 20/64 positive choke 4437 62 2750 2642.55 7.00 Flowing well through separator to flare 5/25/2011 11:00 20164th positive choke 3495 62 2750 20 305 132 21 2.500 0.561 10011.46 2781.60 7.00 11:10 Dievrt flow through 20/64 adjustable 5/25/2011 11:15 choke 4267 62 2750 20 215 _ 18 51 2.500 0.561 2995.35 2812.80 7.00 Divert flow through 10/64 positive choke 5/25/2011 11:30 4271 64 2750 20 215 18 60 2.500 0.561 2965.94 2843.70 7.00 Flowing well through separator to flare 5/25/2011 11:45 10164ths positive choke 4290 64 2750 10 63 42 65 2.500 0.561 2598.95 2870.77 7.00 5/25/2011 12:00 Flowing well through separator to flare 4290 62 2750 10 63 41 67 2.500 0.561 2562.58 2897.46 7.00 Flowing well through separator to flare 5/25/2011 12:15 10/64ths positive choke 4290 63 2760 10 63 41 68 2.500 0.561 2560.06 2924.13 i 7.00 1 Page 7 NW ncr_nnir_r_+ COMPANY: Buccaneer Alaska Operations LLC EXPRO AMERICAS LLC 0 IM?CiF=011 its .;, FIELD: Kenai SURFACE WELL TESTING REPORT LEASE: Kenai WELL#: Kenai Loop#1 CO.REP.: Craig Rang 5/25/2011 12:30 CO2=0%;H2S=Oppm 4289 64 2760 10 63 41 68 2.500 0.561 2560.06 2950.80 7.00 Flowing well through separator to flare 5125/2011 12:45 10164ths positive choke 4289 64 2780 10 63 _ 41 68 2.500 0.561 2560.06 2977.46 7.00 5/2512011 13:00 Flowing well through separator to flare 4290 65_ 2780 10 63 41 68 2.500 0.561 2557.54 3004.11 7.00 Flowing well through separator to flare 5/25/2011 13:15 10164ths positive choke 4290 65 2790 10 64 40 69 2.500 0.561 2542.29 3030.59 7.00 Divert flow through adjustable choke. 5/2512011 13:30 END OF 1ST FLOW PERIOD 4288 65 2800 10 65 39 69 2.500 0.561 2526.14 3056.90 7.00 5/25/2011 13:45 13:40 Divert flow thru 12/64ths positive choke 4204 67 2820 12 75 42 58 2.500 0.561 2813.55 3086.21 7.00 Flowing well through separator to flare 5/25/2011 14:00 12/64th positive choke 4206 68 2850 12 90 68 53 2.500 0.561 3895.54 3126.79 7.00 5/25/2011 14:15 Flowing well through separator to flare 4203 67 2865 12 90 68 52 2.500 0.561 3899.57 3167.41 7.00 Flowing well through separator to flare 5/25/2011 14:30 12164th positive choke 4205 67 2410 12 90 68 52 2.500 0.561 3899.57 3208.03 7.00 512512011 14:45 Flowing well through separator to flare 4205 67 _ 2440 12 90 67 52 2.500 0.561 3870.61 3248.35 7.00 Flowing well through separator to flare 5/2512011 15:00 12/64th positive choke 4204 67 _ 2450 12 90 66 52 2.500 0.561 3841.43 3288.36 7.00 Flowing well through separator to flare 5/25/2011 15:15 4203 68 2480 12 90 66 53 2.500 0.861 3837.46 3328.34 7.00 Divert flow through adjustable choke. 5125/2011 15:30 END OF 2ND FLOW PERIOD 4204 67 2490 12 90 66 54 2.500 0.561 3833.50 3368.27 7.00 Divert flow thru 14/64ths positive choke 5/25/2011 15:45 4201 68 2500 14 90 72 52 2.500 0.561 4021.74 3410.16 7.00 Flowing well through separator to flare 5/2512011 16:00 14/64th positive choke 4055 73 2540 14 120 103 35 2.500 0.561 5603.54 3468.53 7.00 • 5/25/2011 16:15 Flowing well through separator to flare 4058 75 2570 14 _ 120 103 38 2.500 0.561 5609.70 3526.97 7.00 Flowing well through separator to flare 5125/2011 16:30 14/64th positive choke 4061 75 2610 14 120 105 34 2.500 0.562 5615.89 3585.47 7.00 Flowing well through separator to flare 5/251201116:45 4065 75 2640 14 120 105 34 2.500 0.562 5649.02 3644.31 7.00 Flowing well through separator to flare 5/2512011 17:00 4064 73 2660 14 120 105 34 2.500 0.562 5595.06 3702.59 7.00 Flowing well through separator to flare 5125/201117:15 4066 75 2680 14 120 105 33 2.500 0.562 5622.10 3761.15 7.00 Divert flow through adjustable choke. 5/25/2011 17:30 END OF 3RD FLOW PERIOD 4061 75 2700 14 120 105 34 2.500 0.562 5560.32 3819.07 7.00 Divert flow thru 16164ths positive choke 5/25/2011 17:45 3940 74 2720 16 120 112 25 2.500 0.562 5860.22 3880.12 7.00 New specific gravity.560 5/25/2011 18:00 3942 77 2770 16 145 129 22 2.500 0.560 6898.84 3951.98 7.00 Page 8 NNW r,c�eFnNr[a COMPANY: Buccaneer Alaska Operations LLC EXPRO AMERICAS LLC m..... .0 FIELD: Kenai SURFACE WELL TESTING REPORT LEASE: Kenai WELL#: Kenai Loop#1 CO.REP.: Craig Rang 5/2512011 18:15 Flowing well through separator to flare 3925 77 2470_ 16 145 131 25 2.500 0.560 6928.53 4024.15 7.00 Flowing well through separator to flare 5125/2011 18:30 16/64th positive choke 3924 77 2490 16 145 130 _ 25 2.500 0.560 6901.82 4096.05 7.00 Flowing well through separator to flare 5/2512011 18:45 3944 72 2520 16 145 128 24 2.500 0.560 6855.99 4167.46 7.00 Flowing well through separator to flare 5/2512011 19:00 16/64th positive choke _ 3942 72 2530 16 145 129 22 2.500 0.560 6898.84 4239.33 7.00 • 5/25/2011 19:15 Flowing well through separator to flare 3945 72 2560 16 145 130 24 2.500 0.560 6909.77 4311.30 7.00 END OF 4 POINT TEST _ 5/2512011 19:30 3937 71 2580 16 150 131 24 2.500 0.560 7046.72 4384.71 7.00 Shut well in @ tester valve. 5/2512011 19:40 Shut in choke manifold 3008 69 4384.71 7.00 5/2512011 20:00 Monitoring pressure choke manifold 3036 68 4384.71 7.00 5/2512011 20:15 Monitoring pressure @choke manifold 3044 68 4384.71 7.00 512512011 20:30 Monitoring pressure @choke manifold 3058 67 4384.71 7.00 Monitoring pressure @ choke manifold 4384.71 7.00 5125/201120:45 3072 65 _ 5125/2011 21:00 Monitoring pressure @choke manifold 3083 63 4384.71 7.00 5/25/2011 21:15 Monitoring pressure @ choke manifold 3101 62 4384.71 7.00 5/2512011 21:30 Monitoring pressure @ choke manifold 3112 62 4384.71 7.00 5/25/2011 21:45 Monitoring pressure @choke manifold 3127 61 4384.71 7.00 5125/2011 22:00 pressure up casing to 210psi 3142 61 210 4384.71 7.00 Monitoring pressure @ choke manifold 5/2512011 22:30 3154 60 150 4384.71 7.00 pressure up annulus to 210psi 5/2512011 23:00 3195 60 210 4384.71 7.00 5126/2011 0:00 Monitoring pressure @ choke manifold 3230 58 250 4384.71 7.00 5/26/2011 1:00 Monitoring pressure @ choke manifold 3310 57 165 4384.71 7.00 5/26/2011 2:00 Monitoring pressure @choke manifold 3375 _ 57 130 4384.71 7.00 5126/2011 3:00 2:15 pressure up annulus from 130-210psi 3429 54 215 4384.71 7.00 5/2612011 4:00 Monitoring pressure @ choke manifold 3477 53 190 4384.71 7.00 Page 9 • p�a�rnwrr� COMPANY: Buccaneer Alaska Operations LLC EXPRO AMERICAS LLC mx,pRp _t.' . = FIELD: Kenai SURFACE WELL TESTING REPORT LEASE: Kenai WELL#: Kenai Loop#1 CO.REP.: Craig Rang t_v _ 5/26/2011 5:00 Monitoring pressure choke manifold 3549 52 300 4384.71 7.00 512612011 6:00 Monitoring pressure @ choke manifold 3637 53 265 _ 4384.71 7.00 5/26/2011 7:00 Monitoring pressure choke manifold 3685 57 260 4384.71 7.00 Monitoring pressure @ choke manifold 255 60 5/2612011 8:00 3750 4384.71 7.00 • Downhole Ciculating Valve suspected cycled 5126/20119:00 open 3806 64 240 4384.71 7.00 5/26/2011 9:55 Open choke and bleed tubing pressure 3930 64 700 4384.71 7.00 5/26/2011 10:00 Bleeding tubing pressure 3890 65 4384.71 7.00 5/26/2011 10:03 Shut choke 3875 _ 67 530 4384.71 7.00 5/2612011 10:14 Open choke and bleed tubing pressure 3900 67 4384.71 7.00 5126/2011 10:16 Shut choke 3810 65 4384.71 7.00 5/2612011 10:42 Open choke and bleed tubing pressure 3840 67 4384.71 7.00 Shut choke. 5/26/2011 10:48 Circulating valve cycled close 2870 67 475 4384.71 7.00 5/2612011 11:00 Monitoring pressure @ choke manifold 2945 67 440 4384.71 7.00 5/2612011 12:00 Monitoring pressure @ choke manifold 2980 68 370 4384.71 7.00 5/26/2011 13:00 Monitoring pressure choke manifold 3037 69 350 4384.71 7.00 5/26/2011 14:00 Monitoring pressure choke manifold 3102 70 350 4384.71 7.00 Monitoring pressure @ choke manifold 4384.71 7.00 5/26/2011 15:00 3167 72 340 Monitoring pressure @ choke manifold 4384.71 7.00 5/2612011 16:00 3230 74 335 5/26/2011 17:00 Monitoring pressure @ choke manifold 3300 75 335 4384.71 7.00 5/26/2011 18:00 Increased casing pressure to 700 psi 3364 78 325 4384.71 7.00 Monitoring pressure @ choke manifold 84 700 4384.71 7.00 5/26/2011 19:00 5/26/2011 20:00 Monitoring pressure @ choke manifold 3487 77 685 4384.71 7.00 Monitoring pressure @choke manifold 5/26/2011 21:00 3560 82 680 4384.71 7.00 Page 10 nu�C.nr�f[P COMPANY: Buccaneer Alaska Operations LLC EXPRO AMERICAS LLC EiCi�1�Ci €. , • r FIELD: Kenai SURFACE WELL TESTING REPORT LEASE: Kenai WELL#: Kenai Loop#1 CO.REP.: Craig Rang 5/26/2011 22:00 Monitoring pressure choke manifold 3612 77 670 4384.71 7.00 5/26/2011 23:00 Monitoring pressure choke manifold 3675 72 670 4384.71 7.00 5/27/2011 0:00 Monitoring pressure @choke manifold 3719 67 665 4384.71 7.00 5/27/2011 1:00 Monitoring pressure @choke manifold 3785 64 670 4384.71 7.00 5/27/2011 2:00 Monitoring pressure @ choke manifold 3857 62 660 4384.71 7.00 all 5/27/2011 3:00 Monitoring pressure choke manifold 3900 62 660 4384.71 7.00 5/27/2011 4:00 Monitoring pressure @ choke manifold 3969 59 655 4384.71 7.00 5/27/2011 5:00 Monitoring pressure @ choke manifold 4007 57 660 4384.71 7.00 5/27/2011 6:00 Monitoring pressure @ choke manifold 4030 57 655 • 4384.71 7.00 5/27/2011 7:00 Monitoring pressure(2 choke manifold 4120 57 655 , 4384.71 7.00 5/2712011 8:00 Monitoring pressure @choke manifold 4200 57 655 4384.71 7.00 Monitoring pressure @ choke manifold 5/27/2011 9:00 4220 58 655 _ 4384.71 7.00 5/2712011 10:00 Monitoring pressure @ choke manifold 4280 61 640 4384.71 7.00 5127/2011 11:00 Monitoring pressure @choke manifold 4305 62 645 4384.71 7.00 5/27/2011 12:00 Monitoring pressure @choke manifold 4370 65 631 _ 4384.71 7.00 • 5/27/2011 13:00 Monitoring pressure choke manifold 4400 67 630 4384.71 7.00 5/27/2011 13:20 Shut well at Surface Test Tree 4425 57 630 4384.71 7.00 Bleed pressure to zero on inlet line 5/27/2011 13:25 Begin well kill pumping operations 4384.71 7.00 Page 11 • • ,r Well Head Pressure(psig),Gas Rate(Mscf/d),Water rate(bbls/d) JJ o 0 0 0 oo 0 ,r`o 0 8 o °o °0 8 e , y �• $ 4 J` 'a .... ,r ,'a 0 s J a us 1 a�- s s ,T 1) a,,, T- s I �f s 3 f 2 v 1 v f o? p ✓s l Tv, 4, V v S D Ijs m u,JA I tt aD °s = v '� r 0 N y�S N Q w fir, O A m a s• O M f,L l.a s 6` 73 'o 4 -7,-J s —,--)4, •s• = 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S BHP Data Printout Ram, Company: Date: Casing Size/Wt: Temp: Gun Size: SPF: Phasing: Buccaneer Alaska,LLC 5/22/2011 4 1/2"/12.6# 136°F RDX 2 7/8"6 SPF 60' Lease: Well#: Expl.Type: Fluid Wt.&Type Specialist: 0 Kenai Loop#1 RDX 10.2#NaCI Rick Seal/Ted Aiken (IOffshore Block: Start Date/Time Completion Interval: Kenai Loop 05/22/11 05:15:05 9,705'-9,725'(9700'Sand)& 10,008'-10,049'(10010'Sand) Date Time Elapsed Time Pressure Temp. Start Gauge Data Acquisition 5/22/2011 5:15:05 0.000000 13.22 36.54 5/22/2011 5:35:49 0.345552 12.93 35.02 5/22/2011 5:55:49 0.678888 12.68 34.09 Start picking up the DST assembly 5/22/2011 6:15:49 1.012224 12.69 33.89 5/22/2011 6:35:49 1.345560 12.58 33.98 5/22/2011 6:55:49 1.678896 12.81 34.27 5/22/2011 7:15:49 2.012232 12.74 35.14 5/22/2011 7:35:49 2.345544 56.92 47.89 5/22/2011 7:55:49 2.678880 57.99 48.29 Finish making up the BHA,TIN with tubing filling through seal assembly 5/22/2011 8:15:49 3.012216 111.07 51.80 5/22/2011 8:35:49 35 9 3.345552 127.83 52.96 5/22/2011 8:55:49 3.678888 127.68 53.03 5/22/2011 9:15:49 4.012224 127.53 53.05 5/22/2011 9:35:49 4.345560 127.58 53.05 5/22/2011 9:55:49 4.678896 225.91 57.53 5/22/2011 10:15:49 5.012232 407.36 60.98 5/22/2011 10:35:49 5.345544 590.52 64.74 5/22/2011 10:55:49 5.678880 776.84 68.57 5/22/2011 11:15:49 6.012216 973.58 72.63 5/22/2011 11:35:49 6.345552 1170.22 76.64 5/22/2011 11:55:49 6.678888 1240.28 77.88 5/22/2011 12:15:49 7.012224 1413.06 81.23 5/22/2011 12:35:49 7.345560 1617.58 84.64 5/22/2011 12:55:49 7.678896 1811.59 90.22 5/22/2011 13:15:49 8.012232 1981.50 93.78 5/22/2011 13:35:49 8.345544 2167.27 98.01 5/22/2011 13:55:49 8.678880 2376.02 103.07 5/22/2011 14:15:49 9.012216 2554.54 107.67 5/22/2011 14:35:49 9.345552 2761.53 111.35 5/22/2011 14:55:49 9.678888 2941.42 114.84 5/22/2011 15:15:49 10.012224 3142.56 118.12 5/22/2011 15:35:49 10.345560 3167.59 118.65 5/22/2011 15:55:49 10.678896 3206.91 119.47 5/22/2011 16:15:49 11.012232 3396.23 122.22 5/22/2011 16:35:49 11.345544 3589.40 124.89 5/22/2011 16:55:49 11.678880 3734.30 127.79 5/22/2011 17:15:49 12.012216 3930.99 130.87 BHA arrive on bottom,PU=87K, SO=85K with full column of 10.2 heavy fluid 5/22/2011 17:35:49 12.345552 4077.03 133.42 Tag Baker Model D pkr at 9665',Start spacing out at surface 5/22/2011 17:55:49 12.678888 4114.89 134.20 Test seals with 500 psi on the annulus 5/22/2011 18:15:49 13.012224 4115.19 134.22 Good test, bled off pressure and started rigging up surface control head 5/22/2011 18:35:49 13.345560 4115.06 134.21 5/22/2011 18:55:49 13.678896 4115.25 134.23 5/22/2011 19:15:49 14.012232 4115.14 134.23 5/22/2011 19:35:49 14.345544 4115.14 134.24 5/22/2011 19:55:49 14.678880 4115.15 134.24 5/22/2011 20:15:49 15.012216 4115.07 134.25 5/22/2011 20:35:49 15.345552 4115.14 134.25 Page 1 of 11 ESCPAIfCt • • R. 1. S. BHP Data Printout R x I, b=rum,Sr,* Company: Date: Casing Size/Wt: Temp: Gun Size: SPF: Phasing: Buccaneer Alaska, LLC 5/22/2011 4 1/2"/12.6# 136°F RDX 2 7/8"6 SPF 60° Lease: Well#: Expl.Type: Fluid Wt.&Type Specialist: 0 Kenai Loop#1 RDX 10.2#NaCI Rick Seal/Ted Aiken (IOffshore Block: Start Date 1 Time Completion Interval: Kenai Loop 05/22/11 05:15:05 9,705'-9,725'(9700'Sand)&10,008'-10,049'(10010'Sand) Date Time Elapsed Time Pressure Temp. 5/22/2011 20:55:49 15.678888 4115.05 134.25 5/22/2011 21:15:49 16.012224 4114.95 134.25 5/22/2011 21:35:49 16.345560 4114.84 134.25 5/22/2011 21:55:49 16.678896 4115.67 134.26 Pick up out of seals. New PU=90k and SP=85k 5/22/2011 22:15:49 17.012232 4154.14 134.24 5/22/2011 22:35:49 17.345544 4153.35 134.25 5/22/2011 22:55:49 17.678880 4152.50 134.25 5/22/2011 23:15:49 18.012216 4151.49 134.25 Finish rigging up surface control head,wait on morning to fire guns 5/22/2011 23:35:49 18.345552 4110.78 134.19 5/22/2011 23:55:49 18.678888 4110.81 134.19 5/23/2011 0:15:49 19.012224 4110.81 134.20 5/23/2011 0:35:49 19.345560 4110.61 134.19 5/23/2011 0:55:49 19.678896 4110.52 134.20 5/23/2011 1:15:49 20.012232 4110.56 134.20 5/23/2011 1:35:49 20.345544 4110.52 134.21 5/23/2011 1:55:49 20.678880 4110.27 134.20 5/23/2011 2:15:49 21.012216 4110.29 134.21 5/23/2011 2:35:49 21.345552 4110.28 134.21 5/23/2011 2:55:49 21.678888 4110.22 134.21 5/23/2011 3:15:49 22.012224 4110.40 134.22 5/23/2011 3:35:49 22.345560 4110.19 134.22 5/23/2011 3:55:49 22.678896 4109.94 134.23 5/23/2011 4:15:49 23.012232 4109.83 134.22 5/23/2011 4:35:49 23.345544 4109.79 134.22 Held safety meeting 5/23/2011 4:55:49 23.678880 4109.92 134.24 5/23/2011 5:15:49 24.012216 4109.94 134.24 Broke circulation down tubing to verify seal assembly out of Model D pkr seal bore. 5/23/2011 5:35:49 24.345552 4112.17 134.18 5/23/2011 5:55:49 24.678888 4111.41 134.17 5/23/2011 6:15:49 25.012224 4111.64 134.17 Start displacing brine with nitrogen 5/23/2011 6:35:49 25.345560 4172.20 134.33 5/23/2011 6:55:49 25.678896 4154.57 133.75 Stop pumping,total 47 bbls(59502 cubic ft).Final differential pressure 3450 psi Stug into packer with seal assembly.Stacked 13k. 5/23/2011 7:15:49 26.012232 4260.74 134.04 5/23/2011 7:35:49 26.345544 4213.30 134.07 5/23/2011 7:55:49 26.678880 4209.48 134.12 5/23/2011 8:15:49 27.012216 4207.06 134.16 5/23/2011 8:35:49 27.345552 4205.08 134.19 5/23/2011 8:55:49 27.678888 4203.51 134.21 5/23/2011 9:15:49 28.012224 4202.19 134.22 Wing valve opened to 3500 psi tubing pressure,bled back to 2600 psi to shoot guns w/a cal. 1000 pis UB. 5/23/2011 9:35:49 28.345560 4131.44 134.21 5/23/2011 9:55:49 28.678896 3364.04 134.32 Pessure up annulus to 3500 psi,Test Valve in fail-safe position. Dropped detonating bar to fire guns. 5/23/2011 10:15:49 29.012232 3370.10 134.77 Guns fired, increase in pressure at choke manifold. Open well to unload fluid. 5/23/2011 10:35:49 29.345544 4758.21 137.19 Bled annulus pressure from 3600 psi to 2500 psi and maintained. Increased choke to 20/64"adj. Page 2 of 11 0 EXPAO BHP Data Printout R L,*711, 1. rr. Company: Date: Casing Size/Wt: Temp: Gun Size: SPF: Phasing: Buccaneer Alaska,LLC 5/22/2011 4 1/2"l 12.6# 136"F RDX 2 7/8"6 SPF 60" Lease: Well#: Expl.Type: Fluid Wt.&Type Specialist: 0 Kenai Loop#1 RDX 10.2#NaCI Rick Seal/Ted Aiken Offshore Block: Start Date/Time Completion Interval: IlKenai Loop 05/22/11 05:15:05 9,705'-9,725(9700'Sand)&10,008'-10,049'(10010'Sand) Date Time Elapsed Time Pressure Temp. 5/23/2011 10:55:49 29.678880 4642.05 137.38 Fluid to surface,increased choke to 28/64"adj.choke. 5/23/2011 11:15:49 30.012216 5146.25 137.59 Gas to surface, divert flow through test separator. 5/23/2011 11:35:49 30.345552 4415.00 138.50 5/23/2011 11:55:49 30.678888 4482.39 140.33 Shut-in well at choke manifold for initial pressure buildup test. 5/23/2011 12:15:49 31.012224 5193.87 139.98 5/23/2011 12:35:49 31.345560 5193.94 139.01 5/23/2011 12:55:49 31.678896 5194.18 138.39 Opened well for 2nd flow(clean-up#2)on a 16/64"adj.ck through separator to flare. 5/23/2011 13:15:49 32.012232 5124.78 138.12 Increased to 22/64"adj.ck. 5/23/2011 13:35:49 32.345544 4908.08 138.17 5/23/2011 13:55:49 32.678880 4938.12 138.89 5/23/2011 14:15:49 33.012216 4951.74 139.34 5/23/2011 14:35:49 33.345552 4965.42 139.73 5/23/2011 14:55:49 33.678888 5003.48 140.00 5/23/2011 15:15:49 34.012224 5032.31 140.17 5/23/2011 15:35:49 34.345560 4988.87 140.54 5/23/2011 15:55:49 34.678896 5009.17 140.79 5/23/2011 16:15:49 35.012232 5037.96 140.89 5/23/2011 16:35:49 35.345544 4883.25 141.38 5/23/2011 16:55:49 35.678880 4886.58 141.92 Start methanol injection @ upstream choke at 51 gal/day,decreased to 18/64"adj.ck. 5/23/2011 17:15:49 36.012216 4830.42 142.50 5/23/2011 17:35:49 36.345552 5015.22 142.52 5/23/2011 17:55:49 36.678888 5015.27 142.55 5/23/2011 18:15:49 37.012224 5019.32 142.54 5/23/2011 18:35:49 37.345560 5024.67 142.55 5/23/2011 18:55:49 37.678896 5022.20 142.60 5/23/2011 19:15:49 38.012232 5024.23 142.63 5/23/2011 19:35:49 38.345544 5023.98 142.68 5/23/2011 19:55:49 38.678880 5028.27 142.70 5/23/2011 20:15:49 39.012216 5061.24 142.66 5/23/2011 20:35:49 39.345552 5046.16 142.64 5/23/2011 20:55:49 39.678888 5060.14 142.62 Increase methanol injection rate to 76 gal/d, increased to 19/64"adj.ck. 5/23/2011 21:15:49 40.012224 5022.17 142.64 5/23/2011 21:35:49 40.345560 5007.56 142.86 5/23/2011 21:55:49 40.678896 5000.64 143.04 5/23/2011 22:15:49 41.012232 4997.95 143.22 5/23/2011 22:35:49 41.345544 4998.74 143.37 5/23/2011 22:55:49 41.678880 5000.45 143.51 5/23/2011 23:15:49 42.012216 4997.85 143.65 5/23/2011 23:35:49 42.345552 4996.23 143.80 5/23/2011 23:55:49 42.678888 5003.49 143.82 5/24/2011 0:15:49 43.012224 5008.63 143.95 5/24/2011 0:35:49 43.345560 5015.05 143.95 5/24/2011 0:55:49 43.678896 5022.65 143.97 5/24/2011 1:15:49 44.012232 5019.16 143.98 5/24/2011 1:35:49 44.345544 5016.94 144.02 5/24/2011 1:55:49 44,678880 5022.17 144.08 5/24/2011 2:15:49 45.012216 5018.04 144.15 Page 3 of 11 • • EXPRD R. I. S. I BHP Data Printout It xm Company: Date: Casing Size/Wt: Temp: Gun Size: SPF: Phasing: Buccaneer Alaska, LLC 5/22/2011 4 1/2"112.6# 136°F RDX 2 7/8"6 SPF 60' Lease: Well#: Expl.Type: Fluid Wt.&Type Specialist: 0 Kenai Loop#1 RDX 10.2#NaCI Rick Seal/Ted Aiken +l Offshore Block: Start Date/Time Completion Interval: Kenai Loop 05/22/11 05:15:05 9,705'-9,725'(9700'Sand)&10,008'-10,049'(10010'Sand) Date Time Elapsed Time Pressure Temp. 5/24/2011 2:35:49 45.345552 5030.51 144.14 5/24/2011 2:55:49 45.678888 5033.48 144.14 5/24/2011 3:15:49 46.012224 5042.16 144.08 5/24/2011 3:35:49 46.345560 5053.43 144.02 5/24/2011 3:55:49 46.678896 5056.02 143.97 5/24/2011 4:15:49 47.012232 5057.39 143.92 5/24/2011 4:35:49 47.345544 5058.00 143.88 5/24/2011 4:55:49 47.678880 5058.10 143.87 5/24/2011 5:15:49 48.012216 5058.66 143.86 5/24/2011 5:35:49 48.345552 5059.46 143.85 5/24/2011 5:55:49 48.678888 5062.68 143.83 5/24/2011 6:15:49 49.012224 5062.01 143.80 5/24/2011 6:35:49 49.345560 5065.56 143.82 5/24/2011 6:55:49 49.678896 5071.91 143.81 5/24/2011 7:15:49 50.012232 5075.75 143.80 5/24/2011 7:35:49 50.345544 5076.44 143.73 5/24/2011 7:55:49 50.678880 5064.90 143.71 5/24/2011 8:15:49 51.012216 5067.31 143.71 5/24/2011 8:35:49 51.345552 5068.16 143.71 5/24/2011 8:55:49 51.678888 5067.08 143.73 5/24/2011 9:15:49 52.012224 5070.80 143.73 5/24/2011 9:35:49 52.345560 5070.75 143.71 5/24/2011 9:55:49 52.678896 5071.11 143.72 5/24/2011 10:15:49 53.012232 5072.12 143.73 5/24/2011 10:35:49 53.345544 5072.12 143.72 5/24/2011 10:55:49 53.678880 5073.47 143.76 Annulus pressure bled to 2280 psi,discovered leak at casing return line.Close choke line to isolate leak. 5/24/2011 11:15:49 54.012216 5069.48 143.76 5/24/2011 11:35:49 54.345552 5069.69 143.77 5/24/2011 11:55:49 54.678888 5070.87 143.79 5/24/2011 12:15:49 55.012224 5071.77 143.82 5/24/2011 12:35:49 55.345560 5070.52 143.82 Final annulus pressure 2280 psi,start bleeding off annulus pressure to close Test Valve. 5/24/2011 12:55:49 55.678896 5071.26 143.81 Pressure on annulus at 0 psi,Test Valve closed for 2nd Shut-in. Final flowing press.At manifold 4225 psi. Bled press. On tubing down to 3714 psi and shut-in at manifold. 5/24/2011 13:15:49 56.012232 5189.33 142.71 5/24/2011 13:35:49 56.345544 5191.68 142.21 5/24/2011 13:55:49 56.678880 5192.93 141.80 5/24/2011 14:15:49 57.012216 5193.77 141.45 5/24/2011 14:35:49 57.345552 5194.38 141.15 {{ 5/24/2011 14:55:49 57.678888 5194.92 140.88 5/24/2011 15:15:49 58.012224 5195.27 140.63 5/24/2011 15:35:49 58.345560 5195.68 140.41 5/24/2011 15:55:49 58.678896 5195.99 140.20 5/24/2011 16:15:49 59.012232 5196.35 140.02 5/24/2011 16:35:49 59.345544 5196.29 139.83 5/24/2011 16:55:49 59.678880 5196.73 139.66 5/24/2011 17:15:49 60.012216 5197.05 139.50 5/24/2011 17:35:49 60.345552 5197.09 139.36 5/24/2011 17:55:49 60.678888 5197.26 139.22 5/24/2011 18:15:49 61.012224 5197.50 139.09 5/24/2011 18:35:49 61.345560 5197.79 138.96 5/24/2011 18:55:49 61.678896 5197.83 138.84 Page 4 of 11 • • S R. I. S. I 0 EXPRO r,=. :. nn 5 m>s BHP Data Printout R Ix m Company: Date: Casing Size/Wt: Temp: Gun Size: SPF: Phasing: Buccaneer Alaska,L LC 5/22/2011 4 1/2"/12.6# 136°F RDX 2 7/8"6 SPF 60° Lease: Well#: Ex i.Type: Fluid Wt.&Type Specialist: 0 Kenai Loop#1 RDX 10.2#NaCI Rick Seal/Ted Aiken ('Offshore Block: Start Date/Time Completion Interval: Kenai Loop 05/22/11 05:15:05 9,705'-9,725'(9700'Sand)& 10,008'-10,049'(10010'Sand) Date Time Elapsed Time Pressure Temp. 5/24/2011 19:15:49 62.012232 5197.99 138.74 5/24/2011 19:35:49 62.345544 5197.93 138.63 5/24/2011 19:55:49 62.678880 5198.07 138.52 5/24/2011 20:15:49 63.012216 5198.29 138.43 5/24/2011 20:35:49 63.345552 5198.44 138.33 5/24/2011 20:55:49 63.678888 5198.61 138.25 5/24/2011 21:15:49 64.012224 5198.75 138.16 5/24/2011 21:35:49 64,345560 5198.84 138.07 5/24/2011 21:55:49 64.678896 5198.95 137.99 5/24/2011 22:15:49 65.012232 5199.15 137.93 5/24/2011 22:35:49 65.345544 5199.08 137.86 5/24/2011 22:55:49 65.678880 5199.18 137.79 5/24/2011 23:15:49 66.012216 5199.25 137.73 5/24/2011 23:35:49 66.345552 5199.25 137.65 5/24/2011 23:55:49 66.678888 5199.36 137.60 5/25/2011 0:15:49 67.012224 5199.42 137.54 5/25/2011 0:35:49 67.345560 5199.68 137.48 5/25/2011 0:55:49 67.678896 5199.63 137.43 5/25/2011 1:15:49 68.012232 5199.75 137.37 5/25/2011 1:35:49 68.345544 5199.77 137.32 5/25/2011 1:55:49 68.678880 5200.02 137.28 5/25/2011 2:15:49 69.012216 5199.99 137.24 5/25/2011 2:35:49 69.345552 5200.09 137.17 5/25/2011 2:55:49 69.678888 5199.93 137.13 5/25/2011 3:15:49 70.012224 5200.36 137.10 5/25/2011 3:35:49 70.345560 5200.35 137.04 5/25/2011 3:55:49 70.678896 5200.45 137.01 5/25/2011 4:15:49 71.012232 5200.31 136.96 5/25/2011 4:35:49 71.345544 5200.65 136.93 5/25/2011 4:55:49 71.678880 5200.58 136.89 5/25/2011 5:15:49 72.012216 5200.71 136.87 5/25/2011 5:35:49 72.345552 5200.86 136.82 5/25/2011 5:55:49 72.678888 5200.63 136.80 5/25/2011 6:15:49 73.012224 5200.64 136.76 5/25/2011 6:35:49 73.345560 5200.87 136.72 5/25/2011 6:55:49 73.678896 5200.77 136.69 Start pressure annulus to open Tester Valve,TV started to open at 9:07:55 AM 5/25/11. 5/25/2011 7:15:49 74.012232 5201.04 136.66 5/25/2011 7:35:49 74.345544 5201.08 136.63 5/25/2011 7:55:49 74.678880 5201.12 136.61 5/25/2011 8:15:49 75.012216 5201.28 136.58 5/25/2011 8:35:49 75.345552 5200.97 136.55 5/25/2011 8:55:49 75.678888 5201.09 136.52 5/25/2011 9:15:49 76.012224 5192.15 137.31 Annulus to 3500 psi,beld annulus to 0,TV in lock open position, manifold press.at 4391 psi. 5/25/2011 9:35:49 76.345560 5180.74 136.38 5/25/2011 9:55:49 76.678896 5174.73 136.35 5/25/2011 10:15:49 77.012232 5193.51 136.38 Manifold pressure at 4422 psi,pressure annulus to 3500 psi. 5/25/2011 10:35:49 77.345544 5199.59 136.88 Open well at manifold on a 26/64"choke,flow rate reached to 10 mmcfd. 5/25/2011 10:55:49 77.678880 4341.77 139.78 5/25/2011 11:15:49 78.012216 5087.04 142.15 Switch choke back to 10/64"pos. choke...start a 4-point flow after flow test...1st rate. Page 5 of 11 0 EPI�� • R. I. S. 1 BHP Data Printout x xmulrd raum>:Sri,=, Company: Date: Casing Size/Wt: Temp: Gun Size: SPF: Phasing: Buccaneer Alaska,LLC 5122/2011 4 1/2"/12.6# 136°F RDX 2 7/8"6 SPF _60° Lease: Well#: Expl.Type: Fluid Wt.&Type Specialist: 0 Kenai Loop#1 RDX 10.2#NaCI Rick Seal/Ted Aiken Offshore Block: Start Date 1 Time Completion Interval: Kenai Loop _ 05/22/11 05:15:05 9,705'-9,725'(9700'Sand)&10,008'- 10,049'(10010'Sand) Date Time Elapsed Time Pressure Temp. 5/25/2011 11:35:49 78.345552 5064.75 141.65 5/25/2011 11:55:49 78.678888 5072.29 141.65 5/25/2011 12:15:49 79.012224 5073.07 141.75 5/25/2011 12:35:49 79.345560 5073.16 141.86 5/25/2011 12:55:49 79.678896 5073.25 142.06 5/25/2011 13:15:49 80.012232 5073.18 142.19 Increased to 12/64"pos. choke....2nd rate 5/25/2011 13:35:49 80.345544 5056.78 142.38 5/25/2011 13:55:49 80.678880 4995.82 142.97 5/25/2011 14:15:49 81.012216 4994.09 143.43 5/25/2011 14:35:49 81.345552 4993.94 143.76 5/25/2011 14:55:49 81.678888 4994.29 144.12 5/25/2011 15:15:49 82.012224 4993.01 144.45 Increased to 14/64"pos.choke...3rd rate. 5/25/2011 15:35:49 82.345560 4979.88 144.69 5/25/2011 15:55:49 82.678896 4859.93 145.45 5/25/2011 16:15:49 83.012232 4859.21 146.00 5/25/2011 16:35:49 83.345544 4858.83 146.43 5/25/2011 16:55:49 83.678880 4858.96 146.68 5/25/2011 17:15:49 84.012216 4860.39 146.90 Increased to 16/64"pos.choke..,4th rate. 5/25/2011 17:35:49 84.345552 4847.17 147.07 5/25/2011 17:55:49 84.678888 4751.29 147.42 Bled annulus pressure from 2760 psi to 2450 psi. 5/25/2011 18:15:49 85.012224 4749.54 147.65 5/25/2011 18:35:49 85.345560 4758.10 147.80 5/25/2011 18:55:49 85.678896 4755.67 147.86 5/25/2011 19:15:49 86.012232 4757.52 148.08 Bled annulus pressure to 0 psi to close Tester Valve for 3rd Shut-in. 5/25/2011 19:35:49 86.345544 4811.11 147.94 5/25/2011 19:55:49 86.678880 5171.99 146.36 5/25/2011 20:15:49 87.012216 5177.99 145.39 5/25/2011 20:35:49 87.345552 5181.41 144.71 5/25/2011 20:55:49 87.678888 5183.33 144.15 5/25/2011 21:15:49 88.012224 5184.63 143.53 5/25/2011 21:35:49 88.345560 5185.91 143.11 5/25/2011 21:55:49 88.678896 5186.78 142.71 5/25/2011 22:15:49 89.012232 5187.73 142.36 5/25/2011 22:35:49 89.345544 5188.22 142.00 5/25/2011 22:55:49 89.678880 5188.70 141.68 5/25/2011 23:15:49 90.012216 5189.18 141.46 5/25/2011 23:35:49 90.345552 5189.59 141.16 5/25/2011 23:55:49 90.678888 5190.02 140.85 5/26/2011 0:15:49 91.012224 5190.47 140.68 5/26/2011 0:35:49 91.345560 5190.80 140.43 5/26/2011 0:55:49 91.678896 5191.12 140.21 5/26/2011 1:15:49 92.012232 5191.31 140.08 5/26/2011 1:35:49 92.345544 5191.67 139.91 5/26/2011 1:55:49 92.678880 5191.84 139.71 5/26/2011 2:15:49 93.012216 5192.01 139.54 5/26/2011 2:35:49 93.345552 5192.31 139.47 5/26/2011 2:55:49 93.678888 5192.48 139.35 5/26/2011 3:15:49 94.012224 5192.61 139.24 5/26/2011 3:35:49 94.345560 5192.83 139.19 Page 6 of 11 • EtlrRCI BHP Data Printout xe,. st,__,:n;.SO=<: l Company: Date: Casing Size/Wt: Temp: Gun Size: SPF: Phasing: Buccaneer Alaska, LLC 5/22/2011 4 1/2"/12.6# 136°F RDX 2 7/8"6 SPF 60° Lease: Well#: Expl.Type: Fluid Wt.&Type Specialist: 0 Kenai Loop#1 RDX 10.2#NaC1 Rick Seal/Ted Aiken Offshore Block: Start Date I Time Completion Interval: liKenai Loop 05/22/11 05:15:05 9,705-9,725'(9700'Sand)&10,008'-10,049'(10010'Sand) Date Time Elapsed Time Pressure Temp. 5/26/2011 3:55:49 94.678896 5193.16 139.04 5/26/2011 4:15:49 95.012232 5192.93 138.90 5/26/2011 4:35:49 95.345544 5193.25 138.83 5/26/2011 4:55:49 95.678880 5193.47 138.75 5/26/2011 5:15:49 96.012216 5193.66 138.66 5/26/2011 5:35:49 96.345552 5193.72 138.60 5/26/2011 5:55:49 96.678888 5193.94 138.50 5/26/2011 6:15:49 97.012224 5194.04 138.44 5/26/2011 6:35:49 97.345560 5194.15 138.36 5/26/2011 6:55:49 97.678896 5194.26 138.29 5/26/2011 7:15:49 98.012232 5194.33 138.19 5/26/2011 7:35:49 98.345544 5194.67 138.13 5/26/2011 7:55:49 98.678880 5194.79 138.08 5/26/2011 8:15:49 99.012216 5194.70 137.99 5/26/2011 8:35:49 99.345552 5194.96 137.97 5/26/2011 8:55:49 99.678888 5194.88 137.88 5/26/2011 9:15:49 100.012224 5195.04 137.82 5/26/2011 9:35:49 100.345560 5195.18 137.86 5/26/2011 9:55:49 100.678896 5195.38 137.82 5/26/2011 10:15:49 101.012232 5195.45 137.75 5/26/2011 10:35:49 101.345544 5195.47 137.69 5/26/2011 10:55:49 101.678880 5195.21 137.68 5/26/2011 11:15:49 102.012216 5195.44 137.64 5/26/2011 11:35:49 102.345552 5195.45 137.59 5/26/2011 11:55:49 102.678888 5195.57 137.56 5/26/2011 12:15:49 103.012224 5195.73 137.52 5/26/2011 12:35:49 103.345560 5195.57 137.47 5/26/2011 12:55:49 103.678896 5195.68 137.42 5/26/2011 13:15:49 104.012232 5195.99 137.40 5/26/2011 13:35:49 104.345544 5196.28 137.36 5/26/2011 13:55:49 104.678880 5196.05 137.31 5/26/2011 14:15:49 105.012216 5196.01 137.27 5/26/2011 14:35:49 105.345552 5196.36 137.23 5/26/2011 14:55:49 105.678888 5196.39 137.19 5/26/2011 15:15:49 106.012224 5196.34 137.15 5/26/2011 15:35:49 106.345560 5196.28 137.11 5/26/2011 15:55:49 106.678896 5196.65 137.08 5/26/2011 16:15:49 107.012232 5196.79 137.02 5/26/2011 16:35:49 107.345544 5196.55 137.00 5/26/2011 16:55:49 107.678880 5196.52 136.95 5/26/2011 17:15:49 108.012216 5196.74 136.91 5/26/2011 17:35:49 108.345552 5196.62 136.90 5/26/2011 17:55:49 108.678888 5196.76 136.86 5/26/2011 18:15:49 109.012224 5196.80 136.82 5/26/2011 18:35:49 109.345560 5196.90 136.86 5/26/2011 18:55:49 109.678896 5197.22 136.82 5/26/2011 19:15:49 110.012232 5197.11 136.79 5/26/2011 19:35:49 110.345544 5197.06 136.74 5/26/2011 19:55:49 110.678880 5197.25 136.72 5/26/2011 20:15:49 111.012216 5197.33 136.70 5/26/2011 20:35:49 111.345552 5197.23 136.66 5/26/2011 20:55:49 111.678888 5197.29 136.65 5/26/2011 21:15:49 112.012224 5197.43 136.62 5/26/2011 21:35:49 112.345560 5197.51 136.59 Page 7 of 11 0 EXPA® R. I. S. BHP Data Printout sr,= .12111&Mb Company: Date: Casing Size/Wt: Temp: Gun Size: SPF: Phasing: Buccaneer Alaska, LLC 5/22/2011 4 1/2"!12.6# 136°F RDX 2 7/8"6 SPF 60° Lease: Well#: Expl.Type: Fluid Wt.&Type Specialist: 0 Kenai Loop#1 RDX 10.2#NaCI Rick Seal/Ted Aiken Offshore Block: Start Date!Time Completion Interval: IfKenai Loop 05/22/11 05:15:05 9,705'-9,725'(9700'Sand)&10,008'-10,049'(10010'Sand) Date Time Elapsed Time Pressure Temp. 5/26/2011 21:55:49 112.678896 5197.58 136.58 5/26/2011 22:15:49 113.012232 5197.70 136.55 5/26/2011 22:35:49 113.345544 5197.68 136.53 5/26/2011 22:55:49 113.678880 5197.83 136.50 5/26/2011 23:15:49 114.012216 5197.68 136.49 5/26/2011 23:35:49 114.345552 5197.81 136.46 5/26/2011 23:55:49 114.678888 5197.81 136.45 5/27/2011 0:15:49 115.012224 5197.82 136.43 5/27/2011 0:35:49 115.345560 5198.02 136.43 5/27/2011 0:55:49 115.678896 5198.07 136.40 5/27/2011 1:15:49 116.012232 5198.09 136.38 5/27/2011 1:35:49 116.345544 5198.08 136.36 5/27/2011 1:55:49 116.678880 5198.27 136.35 5/27/2011 2:15:49 117.012216 5198.25 136.34 5/27/2011 2:35:49 117.345552 5198.28 136.32 5/27/2011 2:55:49 117.678888 5198.26 136.31 5/27/2011 3:15:49 118.012224 5198.37 136.29 5/27/2011 3:35:49 118.345560 5198.57 136.28 5/27/2011 3:55:49 118.678896 5198.56 136.26 5/27/2011 4:15:49 119.012232 5198.55 136.24 5/27/2011 4:35:49 119.345544 5198.69 136.24 5/27/2011 4:55:49 119.678880 5198.50 136.23 5/27/2011 5:15:49 120.012216 5198.64 136.23 5/27/2011 5:35:49 120.345552 5198.80 136.21 5/27/2011 5:55:49 120.678888 5198.65 136.20 5/27/2011 6:15:49 121.012224 5198.64 136.20 5/27/2011 6:35:49 121.345560 5198.72 136.17 5/27/2011 6:55:49 121.678896 5198.92 136.18 5/27/2011 7:15:49 122.012232 5198.82 136.17 5/27/2011 7:35:49 122.345544 5198.70 136.15 5/27/2011 7:55:49 122.678880 5199.01 136.16 5/27/2011 8:15:49 123.012216 5198.92 136.16 5/27/2011 8:35:49 123.345552 5199.08 136.14 5/27/2011 8:55:49 123.678888 5198.97 136.13 5/27/2011 9:15:49 124.012224 5199.19 136.12 5/27/2011 9:35:49 124.345560 5199.19 136.10 5/27/2011 9:55:49 124.678896 5199.26 136.09 5/27/2011 10:15:49 125.012232 5199.28 136.08 5/27/2011 10:35:49 125.345544 5199.18 136.09 5/27/2011 10:55:49 125.678880 5199.15 136.07 5/27/2011 11:15:49 126.012216 5199.33 136.06 5/27/2011 11:35:49 126.345552 5199.51 136.05 5/27/2011 11:55:49 126.678888 5199.86 136.02 5/27/2011 12:15:49 12 7.012224 5199.73 136.03 5/27/2011 12:35:49 127.345560 5199.79 136.00 5/27/2011 12:55:49 127.678896 5199.96 136.01 Start pressureing annulus from 640 psi to 3500 psi,at 3500 psi,TV was opened. 5/27/2011 13:15:49 128.012232 5180.88 136.37 Closed btm master valve to test BJ hook-up for bullhead procedure. Bled off pressure from above to TV. 5/27/2011 13:35:49 128.345544 5169.10 136.13 5/27/2011 13:55:49 128.678880 5188.96 136.13 5/27/2011 14:15:49 129.012216 5199.97 136.10 5/27/2011 14:35:49 129.345552 5199.97 136.08 Opened Master Valve,started bullheading. 15 bbls pill away,started chasing with 11.0 NaBr. Page 8 of 11 3 • 0 EXPRQ BHP Data Printout Titan z m,.:>. Scm.$ Company: Date: Casing Size/Wt: Temp: Gun Size: SPF: Phasing: Buccaneer Alaska, LLC 5/22/2011 4 1/2"/12.6# 136°F RDX 2 7/8"6 SPF 60° Lease: Well#: Expl.Type: Fluid Wt.&Type Specialist: 0 Kenai Loop#1 RDX 10.2#NaCI Rick Seal/Ted Aiken (Offshore Block: Start Date/Time Completion Interval: Kenai Loop 05/22/11 05:15:05 9,705'-9,725'(9700'Sand)& 10,008'- 10,049'(10010'Sand) Date Time Elapsed Time Pressure Temp. 5/27/2011 14:55:49 129.678888 5355.75 135.48 Hit first bump with pill at 501/2 bbls pumped total,slow down pump not to exceed 200 psi. Pressure spiking up while pumping pill into upper set of perfs. 5/27/2011 15:15:49 130.012224 6273.88 133.19 Stopped pumping,55 bbls total(pill included)pumped. 5/27/2011 15:35:49 130.345560 6302.06 132.84 5/27/2011 15:55:49 130.678896 5029.24 133.48 5/27/2011 16:15:49 131.012232 4565.49 133.80 5/27/2011 16:35:49 131.345544 4443.15 134.11 5/27/2011 16:55:49 131.678880 4471.39 134.30 5/27/2011 17:15:49 132.012216 4637.09 134.58 5/27/2011 17:35:49 132.345552 4652.24 134.63 5/27/2011 17:55:49 132.678888 4668.65 134.68 5/27/2011 18:15:49 133.012224 4689.51 134.73 5/27/2011 18:35:49 133.345560 4727.88 134.98 5/27/2011 18:55:49 133.678896 4761.88 134.96 5/27/2011 19:15:49 134.012232 4809.40 134.95 5/27/2011 19:35:49 134.345544 4871.90 134.97 5/27/2011 19:55:49 134.678880 4948.81 134.98 5/27/2011 20:15:49 135.012216 5036.87 134.99 5/27/2011 20:35:49 135.345552 5122.18 134.98 5/27/2011 20:55:49 135.678888 5211.30 134.98 5/27/2011 21:15:49 136.012224 5295.59 134.98 5/27/2011 21:35:49 136.345560 5374.51 134,99 5/27/2011 21:55:49 136.678896 5443.29 135.01 RIH w/wireline to set Magna Range 1.5"OD packer plug. 5/27/2011 22:15:49 137.012232 5207.24 135.01 5/27/2011 22:35:49 137.345544 5253.49 135.03 5/27/2011 22:55:49 1 37.678880 5196.54 135.03 5/27/2011 23:15:49 138.012216 5344.30 135.03 5/27/2011 23:35:49 138.345552 5500.88 135.03 5/27/2011 23:55:49 138.678888 5662.41 135.04 5/28/2011 0:15:49 139.012224 5730.87 135.04 5/28/2011 0:35:49 139.345560 5772.30 135.04 5/28/2011 0:55:49 139.678896 5714.04 135.04 Set first Magna Range bridge plug at 9695.5 ft. Casing 2405 psi,tubing 1700 psi. i 5/28/2011 1:15:49 140.012232 5766.40 135.04 5/28/2011 1:35:49 140.345544 5634.75 135.05 5/28/2011 1:55:49 140.678880 5509.02 135.06 5/28/2011 2:15:49 141.012216 5272.70 135.05 5/28/2011 2:35:49 141.345552 5334.32 135.07 5/28/2011 2:55:49 141.678888 5390.17 135.08 5/28/2011 3:15:49 142.012224 5439.29 135.10 5/28/2011 3:35:49 142.345560 5483.08 135.10 5/28/2011 3:55:49 142.678896 5522.68 135.11 5/28/2011 4:15:49 143.012232 5558.91 135.12 5/28/2011 4:35:49 143.345544 5415.49 135.13 5/28/2011 4:55:49 143.678880 5263.17 135.15 5/28/2011 5:15:49 144.012216 5168.86 135.15 5/28/2011 5:35:49 144.345552 5190.80 135.15 5/28/2011 5:55:49 144.678888 5279.85 135.17 5/28/2011 6:15:49 145.012224 5336.66 135.19 Wireline RIH to set 2nd plug,couldn't fire setting charge, POOH with wireline. 5/28/2011 6:35:49 145.345560 5243.60 135.18 Page 9 of 11 • 111 410 .- I. - - EXpiRts BHP Data Printout L rum.&mil Company: Date: Casing Size/Wt: Temp: Gun Size: SPF: Phasing: Buccaneer Alaska, LLC 5/22/2011 4 1/2"/12.6# 136°F RDX 2 7/8'6 SPF _60' Lease: Well#: Expl.Type: Fluid Wt.&Type Specialist: 0 Kenai Loop#1 RDX 10.2#NaCI Rick Seal/Ted Aiken Offshore Block: Start Date/Time Completion Interval: Kenai Loop 05/22/11 05:15:05 9,705'-9,725'(9700'Sand)& 10,008'-10,049'(10010'Sand) Date Time Elapsed Time Pressure Temp. 5/28/2011 6:55:49 145.678896 5156.73 135.20 5/28/2011 7:15:49 146.012232 5079.80 135.22 5/28/2011 7:35:49 146.345544 4958.46 135.24 5/28/2011 7:55:49 146.678880 4883.33 135.24 5/28/2011 8:15:49 147.012216 4916.72 135.27 5/28/2011 8:35:49 147.345552 4874.91 135.31 5/28/2011 8:55:49 147.678888 4964.76 135.31 5/28/2011 9:15:49 148.012224 5043.04 135.33 5/28/2011 9:35:49 148.345560 5107.89 135.32 5/28/2011 9:55:49 148.678896 5165.13 135.35 Wireline RIH and set 2nd plug at 9694'. Verified setting. POOH with wireline. 5/28/2011 10:15:49 149.012232 5099.49 135,34 5/28/2011 10:35:49 149.345544 4978.15 135.36 5/28/2011 10:55:49 149.678880 4909.62 135.37 5/28/2011 11:15:49 150.012216 4919.60 135.38 5/28/2011 11:35:49 150.345552 4925.98 135.37 5/28/2011 11:55:49 150.678888 4933.12 135.36 5/28/2011 12:15:49 151.012224 3777.49 135.41 5/28/2011 12:35:49 151.345560 3777.99 135.41 5/28/2011 12:55:49 151.678896 3780.17 135.42 5/28/2011 13:15:49 152.012232 3778.46 135.43 5/28/2011 13:35:49 152.345544 3778.42 135.44 Start filling pipe over the top to work air out of tubing for 1000 psi,pressure test against bridge plug, Rig up to latch onto pipe. 5/28/2011 13:55:49 152.678880 4244.31 135.42 5/2812011 14:15:49 153.012216 4375.54 135.42 5/28/2011 14:35:49 153.345552 4402.32 135.41 5/28/2011 14:55:49 153.678888 4522.06 135.42 5/28/2011 15:15:49 154.012224 4610.02 135.43 Pulled slips to put weight back at indicator. 5/28/2011 15:35:49 154.345560 4673,03 135.41 5/28/2011 15:55:49 154.6 78896 4688.19 135.42 Pressure tubing to 1000 psi for state test regulation on top of bridge plug. 5/28/2011 16:15:49 155.012232 5503.60 135.42 5/28/2011 16:35:49 155.345544 5400.41 135.39 Bled pressure to 0 psi,good test. Minitor well. 5/28/2011 16:55:49 155.678880 5017.80 135.40 5/28/2011 17:15:49 156.012216 4360.68 135.42 5/28/2011 17:35:49 156.345552 4360.39 135.42 5/28/2011 17:55:49 156.678888 4355.56 135.13 5/28/2011 18:15:49 15 7.012224 4355.52 135.16 5/28/2011 18:35:49 157.345560 4352.95 135.16 5/28/2011 18:55:49 157.678896 4354.15 135.16 Picked up to sting out of packer.Start reversing down casing back up tubing thriugh seal muleshoe. 5/28/2011 19:15:49 158.012232 4647.20 134.82 5/28/2011 19:35:49 158.345544 4580.06 134.41 5/28/2011 19:55:49 158.678880 4626.17 133.94 5/28/2011 20:15:49 159.012216 4641.66 133.36 5/28/2011 20:35:49 159.345552 4634.84 132.82 5/28/2011 20:55:49 159.678888 4669.08 132.33 5/28/2011 21:15:49 160.012224 4884.15 132.07 5/28/2011 21:35:49 160.345560 4846.40 131.79 Pumped 437 bbls, stop reversing. Rig dwon BJ lines. 5/28/2011 21:55:49 160.678896 4453.24 132.15 } Page 10 of 11 EXI* CI • R. I. S. BHP Data Printout R4k,-.,1r n,,,=,_s m I Company: Date: Casing SizeNVt: Temp: Gun Size: SPF: Phasing: • Buccaneer Alaska, LLC 5/22/2011 4 1/2"/12.6# 136°F RDX 2 718"6 SPF 60° Lease: Well#: Expl.Type: Fluid Wt.&Type Specialist: 0 Kenai Loop#1 RDX 10.2#NaCI Rick Seal/Ted Alken Offshore Block: Start Date/Time Completion Interval: IlKenai Loop 05/22/11 05:15:05 9,705'-9,725' (9700'Sand)&10,008'-10,049'(10010'Sand) Date Time Elapsed Time Pressure Temp. 5/28/2011 22:15:49 161.012232 4453.53 132.32 Start circulating the long way for one hole volumn. 5/28/2011 22:35:49 161.345544 4902.51 132.44 5/28/2011 22:55:49 161.678880 4838.54 131.71 5128/2011 23:15:49 162.012216 4701.22 131.20 5/28/2011 23:35:49 162.345552 4849.62 130.80 5/28/2011 23:55:49 162.678888 4850.74 130.43 5/29/2011 0:15:49 163.012224 4851.93 130.15 5/29/2011 0:35:49 163.345560 4864.34 129.92 Stop circulating,total of 420 bbls. Break down head assembly and monitor well. 5/29/2011 0:55:49 163.678896 4441.70 129.38 5/29/2011 1:15:49 164.012232 4439.98 130.40 5/29/2011 1:35:49 164.345544 4440.41 130.92 Well stable,start pulling BHA out of hole. 5/29/2011 1:55:49 164.678880 4406.60 130.87 5/29/2011 2:15:49 165.012216 4406.13 131.02 5/29/2011 2:35:49 165.345552 4406.30 131.23 5/29/2011 2:55:49 165.678888 4339.36 130.57 5/29/2011 3:15:49 166.012224 4152.85 128.34 5/29/2011 3:35:49 166.345560 3842.34 124.36 5/29/2011 3:55:49 166.678896 3564.74 119.99 5/29/2011 4:15:49 167.012232 3247.35 114.98 5/29/2011 4:35:49 167.345544 2924.71 109.37 5/29/2011 4:55:49 167.678880 2596.23 103.54 5/29/2011 5:15:49 168.012216 2233.65 96.24 5/29/2011 5:35:49 168.345552 1870.91 89.52 5/29/2011 5:55:49 168.678888 1583.52 84.64 5/29/2011 6:15:49 169.012224 1254.00 79.27 5/29/2011 6:35:49 169.345560 927.80 74.49 5/29/2011 6:55:49 169.678896 562.22 69.95 5/29/2011 7:15:49 170.012232 163.64 66.47 Start laying out tools. 5/29/2011 7:35:49 170.345544 130.44 66.01 5/29/2011 7:55:49 170.678880 130.65 65.74 5/29/2011 8:15:49 171.012216 90.54 65.01 5/29/2011 8:35:49 171.345552 48.79 65.49 5/29/2011 8:55:49 171.678888 13.16 67.91 Finish laying down test BHA.Test completed. 5/29/2011 9:15:49 172.012224 13.00 65.72 } Page 11 of 11 1 • • 0 w p� EXPRCI g Y'u F t r.l BUCCANEER ALASKA ICENAI LOOP#1 KENAI FIELD,ALASKA TEST SUMMARY AND SLR RESULTS This interpretation report analyzed the pressure transient test conducted on Buccaneer Alaska's Kenai Field. Alaska, Kenai Loop #1 well_ 9.700- Sand (perfs: 9.705•-9,725') and 10.010- Sand (perfs: 10.008-10.049'). This pressure transient test data is collected from May 22m to May 276'• 2011: it consists of initial clean-up period. initial shut-in (Shut-in 41)_ flowing period#2 (clean-up#2). second shut-in (Shut-in #2). flowing period#3,a 4-point flow after flow test, and finally a third shut-in(Shut-in#3)period. A highest static bottom hole pressure of 5,201 psi was measured at the end of Shut-in #_: a lowest flowing bottom hole pressure of 4.362 psi was measured at the end of flowing#3 period with a flow rate of 10.011 mcfd before the commence of a 4-point flow after flow test. These pressures gave a highest measured bottom hole pressure drop of 839 psi during the entire test. 6300 BHP a1¢'I 5200 u '' _. _._ f..-- JJ ya"5{� �. V 'Plow Y:2 C .-� .11'j** I 6100 .._.--.._.G . LLL A F 6000 I ..., fy;$w8 -_.__ '-.rl'V'Iv[m ofn 11131111.132511" .-• e �ia11 mrM ` is Th 4900 - _..._... 4' _.._._-.. ........._._.. -. W. .•..1-. --- 'lr'J 1,110 of as 4-{.clot 0 t 4a-s4:1otl rr.oOf 4000 _-_ __�.__. __.___-.. ___. .�. ._..._. ...._..__._..._.__ ___ Aga Orals nr a 4-POint teat [J0==6920 rucrO 4700 - --- ^'a[[t yl--O ytrry l+..sr.[-Jq_ r r , r 11:00 21:00 7g00 17:00 3:00 13'.00 23:00 0 00 19:00 6.00 16:00 1'20tr1 11,211 rr 5,76.11 AZ52071 5.27.,, From the overall pressure response. the total system was characterized to be a well with wellbore storage and damaged effects in a homogeneous reservoir. 4.,0. A diagnostic plot of pseudo-pressure change ••bW.r i (Ain(p)) and Pseudo-pressure derivative (Ani(p)-) an.lr+a u.p z, ' data of Shut-in#2 and Shut-in#3 were created to ,� identify the different resen air floe regimes. A I %r►1- well defined horizontal stabilization period. 1 1111211111N111111111111111 which�)reflects the infinite observed awed radial flow � in reservoir. was obserE•ed between 0? eCO• r"s!'��R ""r hours and 7 hours on both buildups. a II ''.4$14 11.1 nm 01 1 In 10 IffrS • • QExPRO BUCCANEER ALASKA KENAI LOOP#1 K'ENAI FIELD,ALASKA SEQUENCE OF EVENTS (Continued) Average Period Starting Ending Duration Production Comments Time Time (hours) Rate 05/24/11 05/25/11 Bled annulus pressure to zero Shut-in#2 12:59:01 10:40:47 21.6961 --- to close Tester Valve and then shut-in at choke manifold for 2°d pressure buildup test.-- Pressure annulus to open Tester Valve and Tested Valve was opened at 9:07:57 5/25/11. 05/25/11 05/25/11 10011 MCFD Opened well on a positive Flow#3 10:40:47 11:10:58 05033 0 BOPD 20164"choke.switch to 20/64" 0 BWPD adj.before chokechange. 05/25/11 05/25/11 2558 MCFD Switch to a 10/64"positive Flow##4 11:10:58 13:30:09 2.3194 0 BOPD choke...1 rate of a 4-point 0 BWPD flow-after-flow test-..switch to a 10/64"adj.before choke increase. 05/25/11 05/25/11 3868 MCFD Switch to a 12/64"positive Flow#5 13:30:09 15:29:35 1.9906 0 BOPD choke...2nd rate of a 4-point 0 BWPD flow-after-flow test...switch to a 1?164"adj.before choke increase. 05/25/11 05/25/11 5608 MCFD Switch to a 14/64"positive Flow#6 15:29:35 17:31:29 2.3167 0 BOPD choke...3rd rate of a 4-point 0 BWPD flow-after-flow test..switch to a 14/64"adj.before choke increase. • • EXPRC3 BUCCANEER ALASKA kENAI LOOP#1 KENAI FIELD,ALASKA SEQUENCE OF EVENTS (Continued) Average Period Starting Ending Duration Production Comments Time Time (hours) Rate 05/25/11 05125./11 6920 MCFD Switch to a 16/64"positive Flow#7 17:31:29 19:36:00 2.0753 0 BOPD choke...4th rate of a 4-point 0 BWPD flow-after-flow test 05/25/11 05/27/11 Bled annulus pressure to Shut-in#3 19:36:00 13:06:55 41.5153 --- zero to close Tester Valve and then shut-in at choke manifold for 3rd pressure buildup test. 05/27/11 05/29/11 Pressure annulus to 3500 psi End of Test 13:06:55 09:29:00 44.3681 -- to open Tester Valve...at 3500 psi,Tester Valve was in 1st open position_..end of pressure transient test...get ready to bullheading and set bridge plug ._POOH with BHA. I/ • jai., 4 EXPRD Buccaneer Alaska, Kenai Loop #1, Kenai Alaska, 9700' & 10010' Sand Sequence of Events Plot-Internal Gauge SN-3949 @ 7,758'(MD/TVD)....BHP&BHT Data 5300 160 BHP r°mac , 4� vi 5200 �e r^ f— ,r $ A - If 155 Flow#2 ! V O�' i I M 1 / it ID 5100 ^4D1 ¢`�( r/ 150 itp y0' L N v c o.c 1 C 4 to m 5000 e p 2nd rate of 4-point test 145 S to a`�o 4 Qg=3888 mcfd u —I = yam to 4900 Vi oo 140 T D , ,.,,< 3rd rate - int test .` _:Lt 0g=5608 mcid --- --_. 4800 . 135 IBHT <-----4th rate of a 4-point test i < -Clean-up Og=6920 mcfd 4700 1 <______Firm/VA ng=1011 l mrfd 130 1 4600 r 11:00 21:00 7:00 17:00 3:00 13:00 23:00 9:00 19:00 5:00 15:00 512341 5'24/11 5/25/11 52612011 5/27/11 • • 0 E?CPRO BUCCANEER ALASKA KENAI LOOP#1 KENAI FIELD,ALASKA SL\LMARI OF TESTLNG TABLE X (5/22/11–5/27/11) Average Production Rate Choke Percent Actititr size BHP RHP Bill Duration Increase (m) (Psia) (psig) ('F) (hours) (0-o)' MCFD BOPD BWPD Static -- -- -- --- 5161 3900 138 --_ Clean-up#1 3489 0 336 28/64 4472 3700 141 1.45 14.02 (Flow#1) Shut-in#1 -- -- — --- 5197 4425 138 1.05 Clean-up#2 2373 0 0 20/64 5081 4227 144 23.91 2.31 (Flow#2) Shut-in#2 -- -- — -- 5201 4437 137 21.70 Flow#3 10011 0 0 xx/64 4362 3495 142 0.50 16.13 Flow#4 2558 0 0 10/64 5073 4288 142 2.32 2.46 (1'`Rate of 4-point flow-after-flow) Flow#5 3868 0 0 12/64 4992 4204 145 1.99 4.02 (2nd Rate of 4-point flow-after-flow) Flow#6 5608 0 0 14/64 4862 4061 147 2.32 6.52 (3rd Rate of 4-point flow-after-flow) Flow#7 6920 0 0 16/64 4814 3937 148 2.08 7.44 (4th Rate of 4-point flow-after-flow) • • 0 EXPRO BUCCANEER ALASKA KENAI LOOP 41 KENAI FIELD,ALASKA SUMMARY OF TESTING TABLE X (5/22/11-5/27/11...Continued) Average Production Rate C lioke Per cent Ac tivity size BHP MP BHT Duration Increase (in) tpsiai (psi.?1 (IF) (bows) NICTD BOPD HVST'D Shut-in 43 _ 5200 4425 136 41.52 Fr III 411 1 Buccaneer_Kenai Loop_1_052311_Run-Comp Ananlysis Chandler Engineering Co. Model 292/2920 BTU Analyzer Test time: May 23 11 06:29 Calibration #: 14 Test #:5 Location No. :101 Standard/Dry Analysis Saturated/wet Analysis Mole% BTU* R.Den.* GPM** Mole% BTU* R.Den.* Methane 98.940 996.20 0.5480 -- 97.209 978.77 0.5384 Ethane 0.187 3.29 0.0019 0.0496 0.183 3.24 0.0019 Propane 0.049 1.24 0.0008 0.0135 0.048 1.22 0.0007 ( C6+ ) 0.109 5.51 0.0035 0.0467 0.107 5.41 0.0034 Moisture 0.000 0.00 0.0000 -- 1.750 0.88 0.0109 Nitrogen 0.371 0.00 0.0036 -- 0.364 0.00 0.0035 ( CO2 ) 0.344 0.00 0.0052 -- 0.338 0.00 0.0051 Ideal 100.00 1006.2 0.5630 0.1098 * : uncorrected for compressibility at 60.0E & 14.650PSIA. **: Liquid volume reported at 60.0F. Standard/Dry Analysis Saturated/wet Analysis Molar Mass = 16.305 16.335 Relative Density = 0.5639 0.5650 Compressibility Factor = 0.9980 0.9979 Gross Heating Value = 23492. Btu/lb 23059. Btu/lb Gross Heating value = 1008.3 Btu/CF 991.6 Btu/CF Absolute Gas Density = 42.9187 lbm/1000CF 43.0019 lbm/1000CF wobbe Index = 1320.50 unnormalized Total : 101.011 Last Calibrated with Calgas of 1051.5 Btu/CF Apr.24 11 23:18 BUCCANEER KENAI LOOP #1 101 SEP. GAS Temp: NA Deg F Press: NA# Sample Date: 5/23/11 Run Date: 5/23/11 RUN 2 MSN: 101 Page 1 Page 1 of 1 • Maunder, Thomas E (DOA) From: Andy Rike [arike @att.net] Sent: Thursday, September 29, 2011 8:55 AM To: Maunder, Thomas E (DOA); Stephen Hennigan Cc: Saltmarsh, Arthur C (DOA); Okland, Howard D (DOA) Subject: Re: Kenai Loop#1 (211-043) Hey Tom, Nice to hear from you...Congratulations on new responsibilities! The testing info should have been filed as you note required....not sure what happened, but will check and advise. Thanks again for the heads up. We will followup shortly. Andy Rike EVP-Operations Buccaneer Resources, LLC 952 Echo Lane - Suite 420 Houston, TX 77024 713-468-1678 Office 713-703-5157 Cell From: "Maunder, Thomas E (DOA)" <tom.maunder @alaska.gov> To: arike @att.net; Stephen Hennigan <shennigan @peiinc.com> Cc: "Saltmarsh, Arthur C(DOA)" <art.saltmarsh @alaska.gov>; "Okland, Howard D (DOA)" <howard.okland @alaska.gov> Sent: Thu, September 29, 2011 11:14:09 AM Subject: Kenai Loop #1 (211-043) Andy and Steve, As you both likely know, Winton has resigned from the Commission and moved south. I will be responsible for his well related matters. I have just reviewed the file for Kenai Loop#1 in order to become familiar with the wells/operations. I noted that while the completion report(10-407) and Open Flow Potential Report(10-421) have been filed, I did not find any detailed information regarding the testing. This information is required by 20 AAC 25.071 (b) (8) (A) and (B), http://www.legis.state.ak.us/basis/folioproxy.asp?url=http://wwwjnu0l.legis.state.ak.us/cgi- bin/folioisa.dll/aac/query=%5bJUMP:'20+aac+25!2E071'%5d/doc/%7b @1%7d?firsthit Thanks in advance for your attention to this matter. Call or message with any questions. Tom Maunder, PE AOGCC 907-793-1250 9/29/2011 STATE OF ALASKA iik ALASKA( ND GAS CONSERVATION COMMISSIOI GAS WELL OPEN FLOW POTENTIAL TEST REPORT 1a.Test: 0 Initial • Annual II Special lb.Type Test: 0 Stabilized Non Stabilized � IS Muftipoint ❑Constant Time 0 Isochronal ❑Other: 2.Operator Name: 5.Date Completed: 11.Permit to Drill Number: Buccaneer Alaska Operations,LLC 6/28/2011 211043 3.Address: 6.Date TD Reached: 12.API Number: 952 Echo Lane,Suite 420,Houston,Texas 77024 5/9/2011 50- 133205950000 4a.Location of Well(Governmental Section): 7.KB Elevation above MSL(feet): 13.Well Name and Number. Surface: 1888'FNL 1064'FWL Sec 33 TO6N R11W SM 155 Kenai Loop#1 Top of Productive Horizon: 8.Plug Back Depth(MD+TVD): 14.Field/Pool(s): 2068'FNL 1106'FWL Sec 33 TO6N R11W SM 10585'MD/10573"TVD Total Depth: 9.Total Depth(MD+TVD): Kenai Peninsula Exploration 2114'FNL 1162'FWL Sec 33 TO6N R11W SM 10680'MD/10667'TVD 4b.Location of Well(State Base Plane Coordinates NAD 27): 10.Land Use Permit: 15.Property Designation: Surface: x- 279518.13 y-2402268.55 Zone- 4 City of Kenai,Conditional Use Permit MHT 9300082 TPI: x- 279583.34 y-2402087.89 Zone- 4 16.Type of Completion(Describe): Total Depth: x- 279639.09 y- 2402040.42 Zone- 4 Cased hole-2 perforated zones 17.Casing Size Weight per foot,lb. I.D.in inches Set at ft. 19.Perforations: From To 1 7.625" 29.7 6.75 8024 MD 9705-9725'MD(6 spf) 18.Tubing Size Weight per foot,lb. I.D.in inches Set at ft. 10008- 10049' MD (6 spf) 2.875" 6.5 2.441 9666 MD 20.Packer set at ft: 21.GOR cf/bbl: 22.API Liquid Hydrocardbons: 23.Specific Gravity Flowing Fluid(G): 9666 n/a n/a 0.561 24a.Producing through: 24b.Reservoir Temp: 24c.Reservoir Pressure: 24d.Barometric Pressure(Pa): Q Tubing ❑ Casing Est.157 F° Est.5389 psia Q Datum 9916'TVDSS 14.7 psia 25.Length of Flow Channel(L): Vertical Depth(H): Gg: %CO2: %N2: %H2S: Prover: - Meter Run: Taps: 9924 9916 0.564 0.34 0.37 0 - - - 26. FLOW DATA TUBING DATA CASING DATA Prover Choke Pressure Diff. Temp. Pressure Temp. Pressure Temp. Duration of Flow No Line X Orifice Size(in.) Size(in.) psig Hw F° psig F° psig F° Hr. 1. 3.826 X 2.5 65 39 69 4288 65 - - 2 2. 3.826 X 2.5 90 66 54 4204 67 - - 2 3. 3.826 X 2.5 120 105 34 4061 75 - - 2 4. 3.826 X 2.5 150 131 24 3927 71 - - 2 5. X I Basic Coefficient I Flow Temp. Super Comp. No. (24 Hour) hwPm Pressure Gravity Factor Rate of Flow Factor Factor Fb or Fp Pm Ft Fg Q,Mcfd Fpv 1. 2558 2. -Not Available- -Calculated by EXPRO TEST UNIT- 3868 3. 5608 4. 6920 5. Temperature for Separator for Flowing No. Pr T Tr z Gas Fluid Gg G 1. 0.561 - 2. N/A N/A N/A N/A 3. Critical Pressure 4. Critical Temperature 5. ' Form 10-421 Rev. 7/ 009 TINUED ON REVERSE SIDE Submit in Duplicate NBDMS AUG 2 3 2011 Pc n/a Pct . Pf 5389 Pf2 29041321 No. Pt Pte Pc2-Pt2 Pw Pw2 Pc2-Pw2 Ps Ps2 Pf-P92 1. 4288 18386944 5290 27984100 1057221 2. 4204 17673616 5209 27133681 1907640 3. 4061 16491721 5079 25796241 3245080 4. 3927 15421329 5033 25331089 3710232 5. 25. AOF(Mcfd) 31,311 n 0.761 Remarks: Well shut-in downhole. Measured bottom hole pressure data Ps and Pf extrapolated to Datum for AOF talc. I hereby certify t - -e for-goin• is true and correct to the best of my knowledge. Signed /1/ /� Title f Date 8/15/2011 ior , DEFINITIONS OF SYMBOLS AOF Absolute Open Flow Potential. Rate of Flow that would be obtained if the bottom hole pressure opposite the producing face were reduced to zero psia Fb Basic orifice factor Mcfd/ -I hwPm Fp Basic critical flow prover or positive choke factor Mcfd/psia Fg Specific gravity factor, dimensionless Fpv Super compressibility factor= dimensionless Ft Flowing temperature factor, dimensionless G Specific gravity of flowing fluid (air=1.000), dimensionless Gg Specific gravity of separator gas (air=1.00), dimensionless GOR Gas-oil ratio, cu. ft. of gas(14.65 psia and 60 degrees F) per barrel oil (60 degrees F) hw Meter differential pressure, inches of water H Vertical depth corresponding to L, feet(TVD) L Length of flow channel, feet(MD) n Exponent(slope)of back-pressure equation, dimensionless Pa Field barometric pressure, psia Pc Shut-in wellhead pressure, psia Pf Shut-in pressure at vertical depth H, psia Pm Static pressure at point of gas measurement, psia Pr Reduced pressure, dimensionless Ps Flowing pressure at vertical depth H, psia Pt Flowing wellhead pressure, psia Pw Static column wellhead pressure corresponding to Pt, psia Q Rate of flow, Mcfd (14.65 psia and 60 degrees F) Tr Reduced temperature, dimensionless T Absolute temperature, degrees Rankin Z Compressibility factor, dimensionless Recommended procedures for tests and calculations may be found in the Manual of Back-Pressure Testing of Gas Wells, Interstate Oil Compact Commission, Oklahoma City, Oklahoma. Form 10-421 Revised 7/2009 Side 2 Kenai Loop#1 - AOFP 100,000_ __________ .__.__ __ • b ,0,000 _ — !- F a 'I lir t oo° Y I ,00 1,000 ,0,000 ,00,000 Flow Rate,Mcfld AOF =31,311 Mcfd • - - - http://www.ogJ.com/articles/2011/08/alaska cook-inlet gas s ales-contract- signed.html?cmpid=EnlEDAugust 182011 Alaska: Cook Inlet gas sales contract signed --s HOUSTON, Aug. 15 �"� By OGJ editors Buccaneer Energy Ltd., Sydney, has signed a contract with Alaska Pipeline Co. and Enstar Natural Gas Co. to sell natural gas from Kenai Loop field onshore Cook Inlet. The contract is subject to regulatory approvals. Annual weighted average price is $6.03/Mcf. Enstar will be responsible for transportation costs after the receipt point and absorb the current 21¢/Mcf pipeline tariff. The price is split seasonally and has a March-November floor of$5.96, a December-February floor of$7.06, and a year-round ceiling of$10. Deliveries at nonfirm daily auction for peaking demand are to start in December 2011 when facilities are built. Enstar's commitment to acquire gas at contract rates begins when the Cook Inlet Natural Gas Storage facility begins service, set for April 2012. As part of the contract, Buccaneer committed to spud a second well at Kenai Loop by Nov. 1, 2011, and a third by Nov. 1, 2013. Buccaneer is on track to spud its second well this quarter and anticipates drilling a third well in April-May 2012. • .:; s ' BUCCANEER A L A S K A Mr. Daniel Seamount, Chair August 4, 2011 Alaska Oil and Gas Conservation Commission 333 West 7t" Avenue, Suite 100 Anchorage, AK 99501 RE: Application for Annular Disposal Permit: Buccaneer Alaska Operations, LLC — Kenai Loop #1 (Drill Permit 211 043) Dear Mr. Seamount, Buccaneer Alaska Operations, LLC hereby applies for an Annular Disposal Permit to inject used drilling mud and miscellaneous fluids in the Kenai Loop #1 exploratory well during and after the exploratory drilling operations of Kenai Loop #3 and Kenai Loop #2. Injection is expected to commence in late August. Buccaneer plans to use Marathon Glacier #1 Rig to drill the Kenai Loop #3 and #2 wells and complete for testing. Please find attached the Form 1043AD Annular Disposal Application, supporting documentation and information as required by 20 AAC 25.080(b), and a wellbore schematic. If there are any questions and/or any additional information desired, please contact me at 713-468-1678 or Stephen Hennigan at 337-849-5345. Sincerely BUC/CANNEER ALASKA OPERATIONS, LLC fA�Rik eutive Vice resident of Operations Enclosures Cc: Allen Huckabay — Buccaneer Alaska Operations, LLC Stephen Hennigan — Petroleum Engineers for Buccaneer Alaska Operations, LLC STATE OF ALASKA ALASKA OIL AND GAS CONSERVATION COMMISSION ANNULAR DISPOSAL APPLICATION 2n AAr. 9s non 1. Operator Name: 3. Permit to Drill No: 211 043 Buccaneer Alaska Operations, LLC 4. API Number: 50- 133205950000 2. Address: 5. Well Name: Kenai Loop #1 952 Echo Lane Suite 420 6. Field: Kenai Pennisula Exploration Houston, Texas 77024 7. Publicly recorded wells 8. Stratigraphic description: a) Interval exposed to Sterling a) All wells within one- NONE open annulus: quarter mile: b) Waste receiving Sterling zone: b) water wells within NONE known one mile: c) Confinement: Top: Tuffaceous claystones & siltstones Base:: Tuffaceous claystones & siltstones, thin layered coals 9. Depth to base of 10. Hydrocarbon zones permafrost: NA above waste receiving None zone: 11. Previous volume disposed in annulus and date: 12. Estimated slurry density: 13. Maximum anticipated pressure at shoe: No previous disposal 10.2 ppg ±2400 psi frac initiation pressure AVG density= ±9.1 ppg 14. Estimated volume to be disposed with this request: 15. Fluids to be disposed: 30000 bbls Drilling mud and rinsate, produced water from testing intervals, cement rinsate, used completion brine, recovered frac fluid, etc 16. Estimated start date: 1 -Nov -11 17. Attachments: Well Schematic (Include MD and TVD) FI] Cement Bond Log (if required) FIT Records w/ LOT Graph offset water well info Surf. Casing Cementing Data 'J Other C Misc 18. 1 hereby certify Yet the foregoing is Inue and correct to the best of my knowledge. Contact: Stephen Hannigan 337 849 5345 Signature: 4. &V Title: EVP Operations Buccaneer Alaska LLC Printed Phone Name: E.A. Rike Number: 713 468 1678 Date: t� Commission Use Only Conditions of approval: LOT review and approval: Subsequent form Approval required: number: O� Approved APPROVED BY by COMMISSIONER THE COMMISSION Date: Form 10-403AD Rev.6/2004 INSTRUCTIONS ON REVERSE Submit in Duplicate Buccaneer Alaska Operations, LLC Kenai Loop #1 Disposal of Drilling and Other Approved Fluids The following information is provided to comply with AOGCC Regulations in Title 20, Chapter 25, 20 AAC 25.080 for a permit for annular disposal. Receiving well is the Kenai Loop #1 10'/" x 7 5/8" annulus. 2. The depth to the base of potable freshwater aquifers is specifically unknown. A search of the Alaska agencies did not easily reveal any specific data. It is assumed that potable water exists to at least ±400' with fresh water potential to ±700'. (See discussion below). 3. The desired injection interval is BELOW the 10 W casing shoe @ 305773055' MD/TVD, and ABOVE top of cement estimated to be ±5000'MD. This is in the Sterling formation. Several sands will be exposed. See Kenai Loop #1 e -log. There are several water wells in Section 33. They have been researched with the help of ADNR. Most are less than 40' in depth. The information for the two deepest is attached. A listing of all wells in Sec 32-34, drainages, etc of record is attached from DNR, DMLW. Furthermore, there have been ground water studies conducted in relatively nearby areas (Sterling and Nikiski) which indicates a similarity in hydrology. Also, downhole injection has been approved and performed in the Sterling area, Beaver Creek area and other areas. A fairly extensive study was performed for the CINGSA Aquifer Exemption "Cannery Loop Unit, Sterling C Gas Storage Pool: Exemption, Aquifer Deeper than 1300' True Vertical Depth". 5. The waste to be injected will be primarily used drilling mud and drilling mud rinse water. No cuttings are planned to be injected as they are hauled to an approved local landfill - facility. The estimated volume and density of the mud are 3000 bbls at a maximum ±10.2 ppg. The volume is estimated from hole volume, active mud system volume (rig pits), mud storage volume, and rinse water from flushing lines and pits. The maximum volume to be injected under any anticipated circumstances will not exceed 35,000 bbls under this permit. 6. The fluid wastes to be injected will be the fluid used for drilling, completing and testing the Kenai Loop Exploratory Phase (KL #3, KL #2,..) including associated rheology modifiers, minor amounts of cement/rinsate, wash water, and other fluids as allowed under 20 AAC 25.080 (h)(3). NO produced (tested) hydrocarbons will be injected. 7. All casings were tested in the drilling and completion of the Kenai Loop #1. 8. The maximum anticipated pressure at the outer casing shoe (10 3W,@ 305773055' MD/TVD) during disposal operations will be at or near the formation fracture initiation pressure of ±2383 psi (15.0 ppg emw). During disposal operations the equivalent injection pressure may slightly exceed the original fracture pressure due to injected fines bridging the established fractures and new fracture branches necessarily needing to be established. Casing was tested to 2500 psi with a 9.0 ppg mud weight. This equates to (8.8 ppg*3055'*.052) = 1398 psi +2500psi csg test = 3898 psi that the base of the 10 casing has been tested to without backup. The MAXIMUM ANTICIPATED SURFACE PRESSURE during the injection process fluid) = Fracture Pressure at shoe +Friction Pressure Losses — Hydrostatic (lowest density of injected = 3055'* 15.0 ppg emw *.052 + 100 psi - 3055'* 8.33 ppg *.052 = 1160 psi This is anticipated to be the highest surface pressure (worst case) assuming the shallowest injection interval, 100 psi friction pressure and the least dense fluid being injected (fresh water). 9. The 10 3/d' surface casing was set through a 16" conductor set at 138' to 3057'MD/3055'TVD. Cementing was mixed and pumped and cement returns were observed at the surface. Attached are a) Rig report b) Cementing record c) Bond log d) Two (2) Leak off tests e) Surface Casing Test 10. CASING SAFETY FACTORS DURING INJECTION are evaluated based upon the following assumptions: a) Injection will be between the 10 W surface casing and the 7 5/8" intermediate b) Maximum bursting stress will be at the surface casing shoe (3055'TVD). c) Maximum collapse will be on the 7 5/8" casing without internal backup. d) Maximum density of injected fluid is 11.4 ppg e) Pore Pressure at casing shoe is 8.9 ppg emw f) Frictional pressure is:100 psi CALCULATIONS 10 %" Surface Burst Stress = Maximum surface Injection Pressure — friction pressure + (hydrostatic pressure of highest denstiy injected fluid — formation pore pressure at the shoe) = 1160 psi (from #7 above) —100 psi (from #7 above) + ((11.4- 8.8) * 3055' * .052) = 1160-100 + 413 = 1473 psi Burst Safety Factor = Burst Rating of 10 W casing / Bust Stress = 3580 psi / 1473 = 2.50 7 5/8" Intermediate Collapse Stress = Maximum Injection pressure' = 1473 psi from previous stress calculation Collapse Safety Factor = Collapse Rating of 7 5/8" intermediate casing / Collapse Stress = 4790 psi / 1473psi = 3.25 11. Verification of downhole fracture pressures are demonstrated in the attached LOT data a) At casing shoe depth - 15.0 ppg emw = 2383 psi b) At open hole depth of 3352'MD/3350'TVD - 14.7 ppg emw = 2560 psi 12. There does not exist any identified hydrocarbon bearing zones above the estimated top of cement of the 7 5/8" casing at ±5000'. 13. No drilling waste has previously been disposed of in this well. 14. All materials to be disposed of will be generated during operations on the Kenai Loop #2 and #3 and perhaps subsequent retesting of KL #1. 15. Operator intends to comply with all limitations established in 20 AAC 25.080(d) and other AAC requirements. 16. Any information required by the commission will be supplied, if available, in a timely manner, to the best of the operator's ability. Kenai Loop #1 Casing Properties Drive/ Structural Driven 0' 0 100' 0' 16 0.5 X-56 Welded N/A N/A N/A Surface 131/2" 0' 0' 3057' 3055' 103/4" 45.5 L80 BTC 3580 2090 715 BTC topNam Intm 97/8" 0' 0' 8024' 8021' 75/8" 29.7 L80 btm 6890 4790 683 Annular Disposal Procedure Overview NOTE: Notify AOGCC of the intent to perform an injectivity test. 1. Rig up pumps to the 10 %" x 7 5/8" casing valve. 2. Close the valve and pressure test all lines and connections with water to 3000psi. 3. Bleed off lines. Open the annulus valve and begin pumping fluid slowly monitoring pressure so that it also climbs slowly until the formation begins to take fluid. Monitor pressure closely and DO NOT allow the pressure to exceed 3647 psi at any time. (This 70% of the burst rating of the 10 4. Conduct iniectivity test as outlined below recording the test on a chart AND separately record the four rate-pressure pairings. a) Establish the injection rates as follows recording the stabilized injection pressure Injection Rate Stabilized Pressure .5 bpm 1.0 bpm 1.5 bpm 2.0 bpm 2.5 bpm 3.0 bpm Other as per AOGCC b) Shutdown pumps and record pressure bleed off. 5. Bleed off annulus and email charts and recordings to operator for discussion with the AOGCC to determine maximum injection rate allowable.. 6. Once approval is obtained from the AOGCC and posted on location, begin pumping fluid slowly gradually bringing the pumps up to the allowable rate. MONITOR PRESSURE CONTINUOSLY TO MAINTAIN BELOW 2800PSI. 7. Dispose of fluid as needed periodically flushing with water. 8. As pits, etc. are emptied, wash with water and inject same. 9. DAILY submit injection times (start and finish) and note fluid types, density, pressures, and volumes for each time interval. A daily detailed pumping report will be maintained. 10. CONITINUALLY INSPECT ALL EQUIPMENT TO ENSURE NO SPILLAGE OCCURS. Allstate, local and federal regulations are to be followed with no exception. REPORT ANY UPSETS IMMEDIATELY. CMPLTN WELLBORE (6) Kenai Loop #1 Block/Sec 33 6N 11W Wildcat 0 Kenai Peninsula 0 Alaska Ser #.: 211 043 Stephen F. (Steve) Hannigan 8/8/2011 SIZE. Mr. Dpth d.4 8.6 9.8 123'pen .5#N80HC Welded Dnve Sz» 16 ROP/Gas los Cond/Drive to TD. RetrVable tbg plug @ ±11001 ......................................... .................... .......................... € Chemical inj Mandrel ±500' i - 4" SS 0.049 wall chem inj line 2 7/8" 6.5 L80 2.347"ID API EUE 8rd M �CSSV±565' EXPRO 04-29-2011 8.6 9.0 160 Tnple wmbo 3W I 45.5#L80 HTC 131/2" Z 10 3 Pump 42 bbls Mud Clean II with red dye. Pump 3 OT #2 3352' MD 14.7 ppg emw water. Test lines to 2k psi Cmt to surf @ 520 bbis. PROPOSED 1D1 ZOnc Pump 564 bbls 12 ppg emit. Pump 5 bbls water to 1lines. Switch to rig pumps to displace w/45 bbls 8.8 Mud. Floats heldUnsting. CIP @ 21:000 Ta.W, L0T#1 15.0XPq emw 1 hrs - R/u BJ for Cmt Job PJSM for Cmt Job - Tat Surf Lines 4000 Psi - OK 0.25 hrs - Repair BJ H2O Line ( cement plug in line) 1 hrs - Mx 8 10.2 ppg NaCL/KCL Pump 30 Bbl 10PPG Spacer 8 Mx 3 able Cmt - (Packing over/heating - J S/dn 8 Observe) 2.25 his - Mx 8 Pump 126.5 Bbl Lead to Slurry wt 13.5 a PPG - Follow w/ 52 Bills Tail to Slurry Wt 15.8 PPG Shul/dn - Drop Plug 8 Pump 5 Bbls H2O - S/dn 8 Displace w/ Rig Pump - PI Calculated Displacement - Press/up 1000 Psi (1900) 8 hold 5 Min - Bleed/off - Floats HeICCIP = 06:05 HmNote: Btm Shoe @ 8G24'& FI at Collar @ 7938' FIT#3 13.5 EXPRO 05 19 2011 ppg emw 8.6 9.1 13.5 QuM combo plus 8024' } 29.7# L80 BTC top/Vam brn 97/8" 8021' [¢ 7 5) a¢, , • (02 1) B T 5-1/2" 17# x 7-5/8 " 29.7 - 39# '¢, [02 80 KSI Hyd Flex Lock Liner hanger w/ a¢. [02 ZXP LT Packer zQ, ' TOL 7892" MD,7888'TVD 1.875"XN nipple@ 9687.14' 2¢, [02 Cut Biting @±9689' 2 � 1` [¢a 2¢- 102 Baker Model D Pkr @ 9666' (9659'TVD) '$. (02 a¢. [jt2 o, Top Perforation (RDX) 9705 Bottom Perforation (6 SPF) 9724.85- 20., (029( 698 9717' TVD) 'C. [4' jt" Top Perforation (RDX) 10008. Bottom Perforation (6 SPF) loo49. NOTE: Test guns DID NOT release.tf 0000' 10040' TVD) Cut string @±9689'. String fell. '¢. [¢2 102 Estimated top of fish 10240'MD 20 [02 '4. [4a '¢. (02 [02 PBTD 10565'DPM [02 Drill/2: [02 CBL EXPRO 05 19 2011 8.6 11.4 165 Quad combo plus 10680 [¢'72.6#L80 TCll 63/4" 10667 4 1/: Test to 4500 psi. Mix and pump 40 We sealbond sweep at 12.5ppg 672 sx 141.2 slurry Class G + 1.2% BA -56,3% KCL, .5%% EC -1,.4% CD -32_2% A-2, .2%R-3, .05% Static Free, 1 ghs FP -61-. Yid 1.18 cu }Usk, 9.82' marker jt @ 8324' 15.8 ppg 4.951 gl H2O sk, 3.32 pumping time. 79.216 bola water to mix. Landing collar 10591', Float collar @ 10633' Displace w 11.4 ppg mw. Tagged @ 10565' DPM Csg shoe 10676' 5 Kenai Loop #1 Surface Casing CIT-FIT.xlsx PRESSURE INTEGRITY TEST OPERATOR Buccaneer Co. Rep. Larry D / Thor RIG GO ELEVATION ABOVE MSL IRKS) ABOVE ML 22' PUMP TYPE Triplex BPS 0.04663 EFFICIENCY 0,96% CASING TEST (CIT) RATE 0.50 BPM FLOWBACK Plotted Rate: 0.50 barrels TIME CUM. VOL. PRESSURE WELL NAME RIG TYPE CASING DESCR. DEPTHS POINTS Instructions: Fill in shaded areas COMPLETELY! Kenai Loop#1 DATE: 4/20/11 Land COUNTRY/AREA: Alk. USA SIZE 10314" MUD WT 8.8 GRADENVT L-80/45.5 INFORM. PV 9 SHOE (TVD) 3055' YP 15 OH(TVD) 3097' FL 8 SHOE (MD) 3057' GELS 9116118 OH (MD) 3099' LEAK OFF TEST (LOT) Monitor APPR RATE: 0.50 BPM FLOWBACK Time: Plotted Rate: 0.50 barrels TIME Calc Time CUM, VOL. PRESSURE 10 min EMW 0.50 280 1 WALUEI 0.50 21 10.10 1.00 675 2 WAIUEt 1.00 521 12.03 1.50 1030 3 WALUEI 1.50 75V 13.46 2.00 1400 4 WALUEI 2.00 90 14.39 2.50 1800 5 WALUEI 2.50 98 14.89 3.00 2200 6 WALUEI 3.00 101 15.07 3.50 2500 7 WALUEI 3.50 101 15.07 4.00 WALUEI 4.00 8.80 4.50 WALUEI 4.50 8.80 5.00 WALUEI 5.00 8.80 5.50 WALUEI 5.50 8.80 6.00 WALUEI 6.00 8.80 6.50 WALUEI 6.50 8.80 7.00 WALUEI 7.00 8.80 7.50 WALUEI 7.50 8.80 8.00 WALUEI 8.00 8.80 8.50 WALUEI 8.50 8.80 9.00 WALUEI 9.00 8.80 9.50 WALUEI 9.50 8.80 10.00 WALUEI 10.00 8.80 10.50 WALUEI 10.50 8.80 11.00 WALUEI 11.00 8.80 11.50 WALUEI 11.50 8.80 12.00 WALUEI 12.00 8.80 12.50 WALUEI 12.50 8.80 12.50 WALUEI 12.50 8.80 12.50 WALUEI 12.50 8.80 12.50 WALUEI 12.50 8.80 12.50 WALUEI 12.50 8.80 12.50 WALUEI 12.50 8.80 12.50 WALUEI 12.50 8.80 12.50 WALUEI 12.50 8.80 12.50 WALUEI 12.50 8.80 12.50 WALUEI 12.50 8.80 12.50 WALUEI 12.50 8.80 12.50 WALUEI 12.50 8.80 12.50 WALUEI 12.50 8.80 12.50 WALUEI 12.50 8.80 12.50 WALUEI 12.50 8.80 12.50 WALUEI 12.50 8.80 12.50 ISIP 12.50 8.80 Comments SPR # PSI GPS INCR. TIME>> 2.0 975 14.85 #1 INCR. TIME>> 4.0 970 14.82 #2 INCR. TIME» 6.0 965 14.79 Retest of shoe after squeezing. Previous casing test INCR. TIME>> 8.0 960 14.76 with 9.2 wbm incl for reference. INCR. TIME>> 10.0 960 14.76 3000 2500 2000 F") 1500 1000 500 0 0 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 1 TIME and EMW (ppg)[ VOLUME PUMPED AND TIME AFTER SHUT-IN 8/8/2011 6 17 18 19 20 21 22 23 24 25 Wi pPg VIS PV s! t CP YP ID/100ft` GEIS Ib/100fr pH APIFL cc//30mns SOLIDS ALK %/vol r13 9 , RHEOL degF MUD FL degF degF SAMPLE DEPTH Daily Drilling Report 8.8 43 9 15 1 9/16/18 1 9.3 1 8 Buccaneer Alaska Operations 1 200 1 TR WELL NAME. 1 120 1 74 1 NA Kenai Loop #1 DATE: 21 -Apr -11 DAYS SINCE SPUD: 7 D NAVITRAK lFifter Monel UPA O.A.R.T. 5.06 Finishing DP PU. Preparing to MU BHA STATE: Alaska COUNTY: Kenai Peninsula Borough 5.58 r Sub Monet XO 6518 2.70 (4 1/21F Pin x 4 112 H90 Box) Moral Stab DEPTH: 3,075 feel in Sands HOLE MADE: NMCSDP 5 0 Morel Compression Service Drill Pipe Feet in Previous 24 Hours CONTRACTOR: Inlet Drilling Glacier Rig 1 2820 Morel Compression Service Drill Pipe Monel Stab Casings: Size Type MD TVD 24 hr Summary: Finish BOPE Test. Perform CIT. CIT good. PU singles and rack back stands. Hevi Wate . ...............S....Ib/................ 841b/ft 138' ......... ....... 138' Prepare to MU BHA 30.30 .......................................................................................... 3/4" 10ff 45.161. 35..' 3 057' 30.. 55",', 4.50 213.84 1 Wi pPg VIS PV s! t CP YP ID/100ft` GEIS Ib/100fr pH APIFL cc//30mns SOLIDS ALK %/vol CL CA ppm ppm SAND %byvol RHEOL degF MUD FL degF degF SAMPLE DEPTH SAM PLE TIME 8.8 43 9 15 1 9/16/18 1 9.3 1 8 1 6 1 0.8 1 200 1 TR 1 0.25 1 120 1 74 1 NA I pits I 14:00 BIT number DIA inches I MFG TYPE I SERIAL number JETS 32nd DEPT OUT DRILL feet OBD hrs PMP hm ROP (f/h) ICS OCS CONDITION DULL BIT DC LOC B/S I G I CDC I POH 1 131/2 HCC MXL-iX 5189864 3x16,14 3075 2937 35.6 53.6 82.5 1 2 WT A E 2 CT TD 2 97/8 HCC HCD504ZX 7125519 8x14 D NAVITRAK lFifter Monel UPA 63/4 5.06 D Pulser Monel Fitter Sub 613/16 5.58 r Sub Monet XO 6518 2.70 (4 1/21F Pin x 4 112 H90 Box) Moral Stab 613/16 5.41 Strin Stabilizer (6 13/16 x 9 3/4) BIT NO. WOB (klb) TO rpm PDM rpm STROKE LENGTH LINER SIZE SPM GPMPUMP ANNULAR NOZZLE PRESSURE VELOCITY VELOCITY SURFACE HHP BIT HHP h HP AT BIT HPI IN EME Mud Motor (6 5/8 REG Box x 4 1/2 H90 Box) NMCSDP 5 30.00 ompression Service Drill Pipe Monet Stab 93/4 4.74 String Stabilizer (613/16x9314) Monet Sub 6 314 BOP Tests/Drills, etc Last BOPe Test 20 -Apr DRILLS Pit Ddl DAY na secs SPR's Pump No. 1 _psi @ spm Next Test Date 27 -Apr Pit Dill NITE sea Pump No. psi @ spm naeeT nnTTnu unr a eeecuer v«� ...e„ , ITEM OD (in) LGTH (ft) I REMARKS (Tool Joints, Weight/Feet, Etc.) Bit 9 718 1 (TFA z 1.2026. 6 5/8 REG Pin) Motor 6 314 29.00 EME Mud Motor (6 5/8 REG Box x 4 1/2 H90 Box) NMCSDP 5 30.00 ompression Service Drill Pipe Monet Stab 93/4 4.74 String Stabilizer (613/16x9314) Monet Sub 6 314 2.90 Closure Sub (4 1/2 H90 Pin x 4 12 IF Box) MWD 69/16 16.94 D NAVITRAK lFifter Monel UPA 63/4 5.06 D Pulser Monel Fitter Sub 613/16 5.58 r Sub Monet XO 6518 2.70 (4 1/21F Pin x 4 112 H90 Box) Moral Stab 613/16 5.41 Strin Stabilizer (6 13/16 x 9 3/4) NMCSDP 5 30.04 Morel Compression Service Drill Pipe NMCSDP 5 2820 Morel Compression Service Drill Pipe Monel Stab 9314 4.65 NM WB String Stabilizer (6 1/4 x 9 314) XO 63/4 2.90 XO 4 1/2 H90 Pin x 4 1/2 IF Box) Hevi Wate 5 119.74 4 Joints HWDP Jars 61/4 30.30 Weatherford (Dailey) Jars Hevi Wate 5 507.74 17 Joints HWDP 4.50 213.84 1 3019.83 -74.00 1 74.00 South 51.85 West 1 0.30 Total BHA Length:1 828.90 159 MOST RFPPNT niawrnnuei cu•vcvc MD fl) INC AZ TVD (ft) I V Section (ft) North/South (ft) East/West (ft) DLS/100 1439 1.26 213.41 1438.50 -10.57 10.57 South 7.53 West 0.06 1884 2.31 213.60 1883.68 -22.12 22.12 South 15.19 West 0.24 2135 2.43 222.20 213447 -30.28 30.28 South 21.56 West 0.15 2388 3.01 215.05 2387.19 -39.69 39.69 South 28.98 West 0.26 2578 3.51 216.26 2576.88 -45.45 48.45 South 35.28 West 0.26 2705 3.71 210.66 2703.63 -55.12 55.12 South 39.67 West 0.32 2833 3.95 212.97 2831.34 -62.38 62.38 South 44.18 West 0.22 3022 1 4.50 213.84 1 3019.83 -74.00 1 74.00 South 51.85 West 1 0.30 Barite: Sodium Bicarb: TIME USED ernvrnee 6:00 - 8:00 Continue NU ROPE, RU upper cellar, bleeders, air up boots, flowline adapter, center stack, CUM and install mouse hole. 8:00 12:00 PJSM. RU ROPE test eui ment, body test, lighten kill line flange and adapter. 12:00 - 15:30 PTSM. Test BOP 250/4000 psi. Test Annular 250/2500 psi. Test upper pie rams, dart 54.5 valve, and koomey performance. Possum belly gas detector RU is complete. 15:30 16:30 Calibrate char recorder. 16:30 - 2200 Test BOP 250/4000 psi. Test manual choke, HCRs, lower Pipe rams, and blind rams. 22:00 - 22:30 RD test equipment. Install wear bushing. 22:30 - 23:30 PJSM. RU and test 10 3/4" casing to 2500 psi for 30 minutes. CIT was good. RIG SERV -3.5 bible Pumped to reach 2500 psi. After 30 minutes, pressure fell to 2400 psi. 2.5 -Between 3 and 3.5 bible flowed back when pressure bled off. 2330 0:00 Blow down choke manifold. Prep to PU OF. 000 600 PU singles and rack back stands. 20 WOC 0 1 8 NU/TST BOP 18 63 REPR 0 Weather: clear Winds: 5 mph Temperature: 28 degF wmpauy oupvs: parry unsKm Rig Ph No's' 870-421-1650 Thor Kallestad Rig Ph No's: 907-317-7721 TIME DIST HRS CUM RU/RD 0 55 DRLG 0 54.5 REAM/WASH 0 0 WELL TESTING 0 0 TRIP 0 6 RIG SERV 0 2.5 CIRC/COND 0 4.5 RNCSG/CMT 0 20 WOC 0 1 8 NU/TST BOP 18 63 REPR 0 0 LOG 0 6.5 FISH 0 0 BHA 0 6 PU / LD DP 6 14 MONITOR RIG 0 600 WELLHEAD 0 0 64,900 0 0 MISC 0 0 TOTALS: 24 600 FRESH WrR 0 0 BRINE WTR 0 0 DAILY COST CUM COST RIG $ 10,000 $ 150,000 MUD $ 2,300 $ 35,814 DISPOSAL-AIMM $ 215,191 DISPOSAL -PENN $ 1,422 BIT/RMR $ 31,140 RENT (SURF) $ 1,705 $ 12,040 RENT(BHA) $ 3,680 $ 49,310 RENT MATS $ MUD LOGGER $ 3,185 $ 32,591 SUPR $ 2,700 $ 64,900 CSG CREW $ 8,024 LOG / DST $ 69,165 CSG & CH $ CMT &CMTG $ 168,292 ROAD/LOC $ 196,760 $ 159 $ 159 WELLHEAD $ 2,147 $ 6,555 MOB/DEMOB $ 20,850 TRK/HOTSHOT $ 13,227 FISHING/WOC $ COND/CELLAR $ 21,454 FUEL/LUBE $ 12,246 $ 52,658 $ 1,620 $ 25,308 $ 1,300 $ 35,100 MIDA $ 19,929 $ 291,586 $ $ $ 60,971 $ 1,501,546 WT pp VIS slot PV cP YP Ibl100ft` GELS Ib/100ft` pH rF3 3 , ALK CL ppm Mal Daily Drilling Report RHEOL degF MUD degF FL degF SAMPLE DEPTH SAMPLE I TIME Buccaneer Alaska Operations 41 WELL NAME: 15 1 4/5/5 Kenai Loop #1 DATE: 22 -Apr -11 DAYS SINCE SPUD: 8 O.A.R.T. 1 240 Drilling 9 7/8" Intermediate Hole at 3700' STATE: Alaska COUNTY: Kenai Peninsula Borough 1 74 1 3,606 1 500 MXL-1X 5189864 DEPTH: 3,700 feet in Sands HOLE MADE: 82.5 1 2 625 Feet in Previous 24 Hours CONTRACTOR: Inlet Drilling Glacier Rig 1 Casings: Size Type MD TVD 24 hr Summary: MU BNA. MWD Failure. Pull to PU backup tool. RIH. Drill shoe track plus 24' 30.04 ..... .3/ 16" .........S 841h/ft 138' 138' new hole. Perforin LOT (15 ppg EMW). Drill four stands. Perform second LOT 10 4" .......................................................................................... I''.........................'.................. 45.56/.7 3057... 3..055 (14.7 ppg EMW). Drill ahead. XO WT pp VIS slot PV cP YP Ibl100ft` GELS Ib/100ft` pH API FL cU30 mns SOLIDS %/vol ALK CL ppm CA pm SAND %b vol RHEOL degF MUD degF FL degF SAMPLE DEPTH SAMPLE I TIME 8.8 41 6 15 1 4/5/5 9.5 8 1 3 1 0.6 1 28,000 1 240 NA 120 1 70 1 74 1 3,606 1 500 BIT NO. WOB (klb) TD PDM STROKE rpm m LENGTH LINER SIZE SPM GPM DRILL SIT INFORMATION ANNULAR VELOCITY NOZZLE VELOCITY BIT DIA MFG TYPE SERIAL JETS DEPTH DRILL OBD PMP ROP 1,300 CONDITION DULL BIT number inches 63/4 number 32nd OUT feet hre hre (f/h)I ICS I OCS I DC I LOC B/SG ODC POH 1 131/2 HCC MXL-1X 5189864 3x16,14 3075 2937 35.6 53.6 82.5 1 2 WT A E 2 CT TD 2 97/8 HCC HCD504ZX 7125519 6x12 NMCSDP 5 30.04 Monet Compression Service Drill Pipe NMCSDP BIT NO. WOB (klb) TD PDM STROKE rpm m LENGTH LINER SIZE SPM GPM PUMP PRESSURE ANNULAR VELOCITY NOZZLE VELOCITY SURFACE BIT HHP HHP %HP HPI AT BIT IN 2 1-3 45 115 8 5 270 530 1,300 4.74 INM WB String Stabilizer (6 13/16 x 9 3/4) Monel Sub 63/4 Last BOPe Test 20 -Apr DRILLS Pit Ddl DAY na secs Next Test Date 27 -Apr Pit Ddl NITE sacs BOTTOM NOLF 4SQFMRI VK 1 nRn 1 RIO. 1 non 1 rn1 I •RR Pump No. 1 psi @ spm Pump No. psi a spm ITEM OD (in) LGTH (ft) REMARKS (Tool Joints, WeiglTVFeet, Etc.) Bit 9718 1.1 1 PDC Bit (TFA = 0.6627, 6 5/8 REG Pin) Motor 6314 23.15 JUftma XTREME Mud Motor (6 5/8 REG Box x 4 112 H90 Box) NMCSDP 5 28.20 IMonel Compression Service Drill Pipe Monet Stab 93/4 4.74 INM WB String Stabilizer (6 13/16 x 9 3/4) Monel Sub 63/4 2.50 NM MWD Closure Sub (4 112 H90 Pin x 4 1121F Box) MWD 69/16 20.21 NM MWD NAVITRAK - MoneIUPA 63/4 5.07 NM MWD Pulser Monet Filler Sub 613116 5.58 NM Filter Sub Monet XO 65/8 2.70 NM XO (4 1/2 IF Pin x 4 1/2 H90 Box) Monet Stab 613116 5.41 NM WB String Stabilizer (6 13/16 x 9 3/4) NMCSDP 5 30.04 Monet Compression Service Drill Pipe NMCSDP 5 30.00 Monet Compression Service Drill Pipe Monel Stab 9314 4.65 NM WB Siring Stabilizer 6 1/4 x 9 3/4) XO 6314 1 2.90 1X0 (4 1/2 H90 Pin x 4 1/2 IF Box) Hevi Wate 5 1 119.74 14 Joints HWDP Jars 6114 1 30.30 Weatherford (Dailey) Jars Hevi Were 5 1 507.74 117 Joints HWDP $ 168,292 ROAD/LOC $ 74,357 $ 293,680 Total BHA Len the 824.03 MnST RemuT ru..IT1nun1 e MD (ft) I INC I AZ TVD (ft) V Section ft North/South (ft) EastlWest (ft) DLS/100 2135 2.43 222.20 2134.47 -30.26 30.28 South 21.56 West 0.15 2388 3.01 215.05 2387.19 -39.69 39.69 South 28.98 West 0.26 2578 3.51 216.26 2576.88 -45.45 48.45 South 35.28 West 0.26 2705 3.71 210.66 2703.63 -55.12 55.12 South 39.67 West 0.32 2833 3.95 272.97 2837.34 -62.38 62.38 South 44.18 West 0.22 3022 4.50 213.84 3019.83 -74.00 74.00 South 51.85 West 0.30 3157 3.61 223.26 3154.49 -81.50 81.50 South 57.72 West 0.82 3220 3.34 229.00 3217.37 -84.15 84.15 South 60.46 West 0.70 DAILY MUD PRODUCTS USED Sack Black: 30 sacks Asphasol Supreme: 40 sacks Flowzan: 16 - 25 Ib sacks Soda Ash: 5 sacks Polypac Supreme: 20 sacks KCL: 168 sacks TIME ArI IvIee 6:00 9:00 PJSM. MU BHA, 9:00 - 12:00 MWD failed pump test. Pull and replace tool. 12:00 - 12:30 Pump test MWD. Tool turned on and worked. 12:30 13:00 RIH w/HWDP f/166'to 824.' 13:00 - 16:30 Drift, RIH, w/5" DP U824'to 2783'. Wash 02783' to 2960' (tag cement). 16:30 18:00 Ream cement and shoe trackf/2960'to 3057'. Ream mthole cememf/3057'to 3075.' 18:00 - 18:30 Drill f/3057' to 3099.' 18:30 20.00 Circulate and displace w/Flowpro. 20:00 - 20:30 LOT = 15 ppg EMW. 1010 psi 3097 TVD w/8.8 ppg. 3.6 bN pumped. Flowback RIG SERV not monitored due to ongoing mud build. 20:30 . 23:30 Drill 03099'to 3352.' 23:30 0:00 CBU. Pullback to shoe. 0:00 - 0:30 LOT = 14.7 EMW. 1030 psi 0 3349 TVD w/8.8 ppg. 4.6 bbl pumped. 3 bbl fimback. 20 Cuttings at point of second LOT were well sorted, medium grain sands. 0:30 1:30 RIH to 3352.' 1:30 6:00 Drill 9 7/8" intermediate hole (/3352' to 3700' 63 REPR 0 Weather: clear Winds: 0 mph Temperature: 39 degF wnlpeny oupvs: Larry unsKnl Rig Ph No's: 870-421-1650 Thor Kallestad Rig Ph No's: 907-317-7721 TIME DIST HRS CUM RU/RD 0 55 DRLG 8 62S REAM/WASH 1.5 1.5 WELLTESTING 0 0 TRIP 5 11 RIG SERV 0 2.5 CIRC /COND 3 7.5 RN CSG/CMT 0 20 WOC 0 6 NU/TST BOP 0 63 REPR 0 0 LOG 0 6.5 FISH 0 0 BHA 6.5 12.5 PU/LD DP 0 14 MONITOR RIG 0 600 WELLHEAD 0 0 67,600 6 0 MISC 0 0 TOTALS: 24 800 FRESH WTR 0 0 BRINE WTR 0 0 DAILY COST I CUM COST RIG $ 10,000 1 $ 160,000 MUD $ 27.7301 $ 63,544 DISPOSAL-AIMM 1 $ 215,191 DISPOSAL -PENN $ 641 1 $ 2,063 BIT/RMR $ 31,140 RENT (SURF) $ 1,705 $ 13,745 RENT (BHA) $ 13,023 $ 62,333 RENT MATS $ MUDLOGGER $ 3,755 $ 36,346 SUPR $ 2,700 $ 67,600 CSG CREW $ 8,024 LOG/DST $ 69,165 CSG & CH $ CMT &CMTG $ 168,292 ROAD/LOC $ 74,357 $ 293,680 WATER $ 159 WELLHEAD $ 6555 MOB/DEMOB $ 819 $ 21,669 TRK/ HOT SHOT $ 16,944 $ 39,063 FISHING /WOC $ COND/CELLAR $ 21,454 FUEL/LUBE $ 54,330 DIRECTIONAL $ 5,187 $ 30,495 SECURITY $ 1,300 $ 36,400 IDA $ 19,929 $ 311,515 WELL TESTING $ MISC $ TOTALS: $ 178,091 1 $ 1,712,763 » MIDNIGHT 00 rifu. Maw, a r #f m NOON '� 6 Kenai Loop #1 Surface Casing LOT_3352.xlsx PRESSURE INTEGRITY TEST Instructions: Fill in shaded areas COMPLETELY! OPERATOR Buccaneer WELLNAME Kenai Loop#1 DATE: 4/22/11 co. Rep. Larry D / Thor RIG TYPE Land COUNTRY/AREA: Ak. USA RIG GD 1 CASING SIZE 10 3/4" MUD WT 8.8 ELEVATION ABOVE MSL DESCR. GRADE/WT L-80/45.5 INFORM. PV 9 (RKB) ABOVE ML 22' DEPTHS SHOE (TVD) 3055' YP 15 PUMP TYPE Triplex OH (TVD) 3349' FL 8 BPS 0.04663 SHOE (MD) 3057' GELS 9/16/18 EFFICIENCY 0.96% OH (MD) 3352' CASING TEST (CIT) LEAK OFF TEST (LOT) Monitor RATE 0.50 BPM FLOWBACK APPR RATE: 0.50 BPM FLOWBACK Time. 10 min Plotted Rate: 0.50 barrels TIME Plotted Rate: 0.50 barrels TIME CUM. VOL. PRESSURE POINTS Calc Time CUM. VOL. PRESSURE EMW 0.50 280 1 WALUEI 0.50 90 9.32 1.00 675 2 WALUEI 1.00 270 10.35 1.50 1030 3 WALUEI 1.50 480 11.56 2.00 1400 4 WALUE1 2.00 690 12.76 2.50 1800 5 WALUE1 2.50 860 13.74 3.00 2200 6 VALUE' 3.00;. 950 14.26 3.50 2500 7 VALUE 3.50 1010 14.60 4.00 8 WALUEI 4.00 1030 14.71 4.50 9 WALUE1 4.50 1030 14.71 5.00 WALUEI 5.00 8.80 5.50 WALUEI 5.50 2 8.80 6.00 WALUEI 6.00 8.80 6.50 WALUEI 6.50 6.60 7.00 WALUEI 7.00 8.80 7.50 WALUEI 7.50 _ 8.80 8.00 WALUE! 8.00 8.80 8.50 WALUEI 8.50 8.80 9.00 WALUEI 9.00 8.80 9.50 WALUEI 9.50 8.80 10.00 WALUEI 10.00 8.80 10.50 WALUE! 10.50 8.80 11.00 WALUEI 11.00 8.80 11.50 WALUEI 11.50 8.80 12.00 WALLET 12.00 8.80 12.50 VALUE 12.50 8.80 12.50 VALUE 12.50 8.80 12.50 WALUEI 12.50 8.80 12.50 VALUE! 12.50 8.80 12.50 WALUEI 12.50 8.80 12.50 WALUEI 12.50 8.80 1250 WALUEI 12.50 8.80 12.50 WALUEI 12.50 8.80 12.50 WALUEI 12.50 8.80 12.50 WALUEI 12.50 8.80 12.50 WALUEI 12.50 8.80 12.50 WALLET 12.50 8.80 12.50 WALUEI 12.50 8.80 12.50 WALUE! 12.50 8.80 12.50 WALUEI 12.50 8.80 12.50 WALUEI 12.50 8.80 12.50 ISIP 12.50 8.80 Comments SPR # PSI GPS INCR. TIME» 2.0 1025 14.69 #1 #2 INCR. TIME» 4.0 1015 14.63 INCR. TIME» 6.0 1015 14.63 Retest of shoe after squeezing. Previous casing test INCR. TIME>> 8.0 1015 14.63 with 9.2 wbnl incl for reference. INCR. TIME>> 10.0 1010 14.60 PRESSURE VS. VOLUME LABELS -�- CIT 3000 LOT --r-EMW A Bleed off EMW 2500 -a- Maximum Volume Line ^Inaememel Time / 2000 a 1500 / 5 1015 1 is 1 15 1 10 l000 011 ".TQ - 500 / / 0 0 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 TIME and EMW (ppg)[ 0) VOLUME PUMPED AND TIME AFTER SHUT-IN Stephen F. (Steve) Hannigan 8/8/2011 Buccaneer Alaska Operations LL KENAI LOOP #1 API# 50-133-20595-0000 CANNERY LOOP Field 33 -6N -11W Kenai County, Alaska May 10, 2011 Cement Post Job Report Prepared for: Andy Rike VP Operations Renaissance Alaska, LLC / Buccaneer Bus Phone: 713-468-1678 Mobile: 713-703-5175 Proposal No: I 1001141957H Prepared by: Joshua Herald Field Engineer Bus Phone: 907-776-4084 Email: Joshua.Herald@bjservices.com Mobile: 907-398-8303 rm POW ERVISIONO Pow r:RPRo • Powr R'I RnX • Pow I. Rl.i sr; Service Point: Service Representatives: Kenai Rod Edwards Bus Phone: (907) 776-4084 Account Manager (907) 659-2329 Kenai, Alaska Fax: (907) 776-4087 Bus Phone: 907-349-6518 Mobile: 907-229-6536 Buccaneer Alaska Operations LL KENAI LOOP #1 API # 50-133-20595-0000 CANNERY LOOP Field 33 -6N -11W Kenai County, Alaska May 10, 2011 Surface Cement- Post Job Report Prepared for: Andy Rike VP Operations Renaissance Alaska, LLC / Buccaneer Bus Phone: 713-468-1678 Mobile: 713-703-5175 Proposal No: I 1001141957H Prepared by: Joshua Herald Field Engineer Bus Phone: 907-776-4084 Email: Joshua. Herald@bjservices.com Mobile: 907-398-8303 POW ERVISIONO P0wER13R0 • Pow ER'I'RAx • Pow r.R1.1 NK Service Point: Service Representatives: Kenai Rod Edwards Bus Phone: (907) 776-4084 Account Manager (907) 659-2329 Kenai, Alaska Fax: (907)776-4087 Bus Phone: 907-349-6518 Mobile: 907-229-6536 Grd105 Operator Name: Buccaneer Alaska Operations LL Well Name: KENAI LOOP #1 .� Job Description: 10.75 Surface Casing 12.0 ppg Date: May 10, 2011 Proposal No: 1001141957H JOB AT A GLANCE Depth (TVD) 3,075 ft Depth (MD) 3,075 ft Hole Size 13.5 in Casing SizefWeight 10 3/4in, 45.5 lbs/ft Pump Via Casing 5" O.D. (4.276" .I.D) 18# Total Mix Water Required 13,974 gals Pre -Flush Mud Clean II 40 bbls Density 8.4 ppg Cement Slurry Type 112ppg 1,479 sacks Density 12.0 ppg Yield 2.30 cf/sack Displacement Drilling Fluid 53 bbls Reporl Pnn,ed on May 18, 2011 L28 PM Page 1 Gr4109 STIMULATION o CEMENTING o COMPLETION SERVICES o SERVICE TOOLS o COILED TUBING o PRODUCTION CHEMICALS o CASING AND TUBING RUNNING SERVICES o PIPELINE SERVICES o WELL CONTROL o CHEMICAL SERVICES Operator Name: Well Name: Buccaneer Alaska Operations LL KENAI LOOP #1 Job Description: 10.75 Surface Casing 12.0 ppg Lop—eli Date: May 10, 2011 ProposalNo:1001141957H WELL DATA ANNULAR GEOMETRY ANNULAR I.D. DEPTH ft (in) MEASURED TRUE VERTICAL 15.124 CASING I 138 138 13.500 HOLE 3,075 3,075 SUSPENDED PIPES Float Collar set @ Mud Density Mud Type Est. Static Temp. Est. Circ. Temp. VOLUME CALCULATIONS 138 ft x 0.6173 cf/ft 2,919 ft x 0.3637 cf/ft 80 ft x 0.5400 cf/ft with 0 % excess with 208 % excess with 0 % excess TOTAL SLURRY VOLUME 2,977 It 9.00 ppg Brine Based 89°F 830F = 85.2 cf = 3272.1 cf = 43.2 cf (inside pipe) = 3400.5 cf = 606 bbls R.1Pnnletl an: May 18, 20111:26 PM Page 2 Gr0115 STIMULATION o CEMENTING o COMPLETION SERVICES o SERVICE TOOLS o COILED TUBING o PRODUCTION CHEMICALS CASING AND TUBING RUNNING SERVICES o PIPELINE SERVICES o WELL CONTROL o CHEMICAL SERVICES Operator Name: Buccaneer Alaska Operations LL Well Name: KENAI LOOP #1 Job Description: 10.75 Surface Casing 12.0 ppg Date: May 10, 2011 FLUID SPECIFICATIONS Pre -Flush VOLUME VOLUME FLUID CU -FT FACTOR Cement Slurry 3400 / 2.3 Displacement CEMENT PROPERTIES Slurry Weight (ppg) Slurry Yield (cf/sack) Amount of Mix Water (gps) Amount of Mix Fluid (gps) Proposal No: 1001141957H 40.0 bbls Mud Clean II @ 8.4 ppg AMOUNT AND TYPE OF CEMENT = 1479 sacks Type I Cement + 0.05% bwoc Static Free + 0.6% bwoc CD -32 + 1 gals/100 sack FP -6L + 15% bwoc LW -5E, 100# Carton + 20% bwoc MPA -1 + 83.8% Fresh Water 52.9 bbls Drilling Fluid SLURRY NO.1 12.00 2.30 9.45 9.46 Report Punted on: May 18. 2011 1: 26 PM Page 3 STIMULATION o CEMENTING o COMPLETION SERVICES o SERVICE TOOLS o COILED TUBING o PRODUCTION CHEMICALS CASING AND TUBING RUNNING SERVICES o PIPELINE SERVICES o WELL CONTROL o CHEMICAL SERVICES Operator: Buccaneer Alaska Operations LL Well Name: KENAI LOOP #1 Date: May 10, 2011 PRODUCT DESCRIPTIONS Proposal No: 1001141957H CD -32 A patented, free-flowing, water soluble polymer that is an efficient and effective dispersant for primary and remedial cementing. FP -6L A clear liquid that decreases foaming in slurries during mixing. MPA -1 MPA -1 is a fine white pozzolanic type powder used to enhance various cement properties. These properties include: Enhanced Compressive Strength Development, Improved Sulfate Resistance, Increased Tensile and Flexural Strength, and Gas Control. MPA -1 is functional over a broad temperature range, and can be used in foamed lightweight, normal, and heavyweight cement designs. Concentrations range from 1 to 30% BWOC. Mud Clean II A water -base mud wash designed for use ahead of cement slurries to aid in mud and drilling debris removal and to prevent contamination of the cement slurry. It should be used only when water -base mud is used. Static Free An anti -static additive used to prevent air entrainment due to agglomerated particles. Can be used in Cementing and Fracturing operations to aid in the flow of dry materials. Type I Cement A Portland cement designed for use to 6,000 Ft. Type I cement can be modified for use at greater depths. Type I is moderately resistant to sulfate attack. Rep Panlelon: May 18, 20111'.M PM Page 6 Gn4183 STIMULATION o CEMENTING o COMPLETION SERVICES o SERVICE TOOLS o COILED TUBING PRODUCTION CHEMICALS CASING L, ] , BJ Services JobMaster Program Version 3.50 lop Job Number: Customer: Well Name: BJ Services Job Start: Monday, April 18, 2011 5000, Surface Cement Job --20 High Pressure Test 4000 - 15 Shut down turn over to rig for displacement Qn Start Mixing and pumping cement 3000 ^ EL o. a r.L CL E Fill Lines with 3 bbl H2O 10 N =Pump 5 bbl H2O to clean out lines + 0 N .� U) N rn 2000 Stop Pumping cement - O x LL Q Low Test Test _ + X IL ❑ O 5 1000--- — . 0 0 50 100 Elapsed Time (min) BJ Services Job Start: Monday, April 18, 2011 CEMENT JOB REPORT CUSTOMER Buccaneer Alaska Operations,L DATE 18-ApR-11 IF.R.0 611810051 SERV. SUPV. David Wallingford LEASE 8 WELL NAME LOCATION COUNTY -PARISH -BLOCK Kenai LooR ##1 Kenai Alaska — DISTRICT K..I DRILLING CONTRACTOR RIG # TYPE OF JOB Surface SIZE A TYPE OF PLUGS LIST -CSG -HARDWARE PHYSICAL SLURRY PROPERTIES Float Shoe 10-3/4 - Buttress SACKS SLURRY SLURRY WATER PUMP Bbl Bbl - - - --- --- - OF WGT YLD GPS TIME SLURRY MIX CEMENT PPG FTs HR:MIN WATER MATERIALS FURNISHED BY BJ Mud Clean 11 _ ---- - -- 8.4_. ._._ 40, Type 112pp9 - -- — 14479 12. _ 2.30 9.45. 605.63: 332.7 Drilling Fluid _ 52.881 Available Mix Water Bbl. Available Displ. Fluid Sol. TOTAL 698.51 L 332.70 HOLE I TBG-CSG-D.P. COLLAR DEPTHS -_ I._DEPTH __—-I SHOE I WGT.-' ITYPE - 13.5I 3075 10.751 45.51CSG 3057' LAST CASINGI PKR-CMT RET -BR PL -LINER I PERF. DEPTH TOP CONN I WELL FLUID BRAin aTYPE I DEPTHTOP I BTM 512E ITNREAD TYPE WGT 16 75 138 J- _ 1- DISPL. VOLUME DISPL. FLUID CAL. PSI CAL. MAX PSI OP. MAX MAX—TBG PSI MAX CSG PSI MIX UOM TYPE WGT. BUMP PLUG TO REV. SQ. PSI RATED Operator RATED I Operator I WATER _VOLUME 52.9 BBLS Drilling Fluid Ing I i EXPLANATION: TROUBLE SETTING TOOL, RUNNING CSG, ETC. PRIOR TO CEMENTING: PRESSURE/RATE DETAIL EXPLANATION TIME , PRESSURE - PSI RATE Bbl. FLUIDS FLUID SAFETY MEETING: BJ CREW �% CO. REP. [K_ HR MIN E _ _ ANNU SPM PUMPED TYPE TEST LINES 2000 PSI PIPLUS —,- CIRCULATING WELL - RIG Ln BJ 15:30 _ Arive On Location 15:35 _ Talk with company Man _ 15:45 _ _ _ Tailgate Safety meeting _ -- 15:55... _ 1 Rig up - — 18:30 ! Safety Meeting on rig floor 18:42 _ _ _ _ Rig Pumping 40 bbl Mud Clean II W/red dye Pump 3 bbl ahead to fill lines Low Pressure Test _ 19:04 - _ 7 _ _ ! 1.1 I WATER _ 19:13. 1 845J 0 _ _ 3 I WATER 19:15 1987 0 3 WATER High Pressure Test _ 19:18 j 81 01 31 WATER _ I Beed Pressure 19:23 1181 1.4 .4 1 CEMENT I Start Mixing and pumping cement__ _ 19:33 1 5941 6.51 38.7 CEMENT I At weight and Established good 20:54 8341 1 5.91 5201 CEMENT -rate I Good Cement Returns to Surface 21:04273 .4 5641 CEMENT_ I_Stop Pumping Cement 21:05 415 j A. 1 .3 WATER 'Pump 5 bbl H2O to Clean Lines 21:06 _ 201 01 51 WATER_ Turn Over to Rig for Displacement 21:09 _ _ Thank You For Baker Hughes_ _Using PBI TO TEST - BBL.CM7 TOTAL PSI SPOT SERVICE SUPERVISOR SIGNATURE: BUMPED BUMP FLOAT RETURNS/� LEFT ON I TOP OUT -- PLUG PLUG EQUIP. REVERSED PUMPED CSG CEMENT Y Y❑ N 572 20 I Y ❑N RpPo,I PoMetl on: APR -1&1118]9:17 Page 7 „Aw Fike BAKER HUGHES West Coast Area Laboratory Report Report#: CMT020311A Base I Typel 100 Additives Free 10.051 % BWOC Gel 10 sec I 10 min 100 Ib/s ft500 Ib/sft Strength Mix Water: 1 9.446 Bingham Plastic PV I YP 3677 Machine: Client/Well Information: Company: Buccaneer District: Kenai Depth MD: 3000 Field: Job T e: Surface Depth TVD: 3000 Well: Kenai Loop #1 Hole Size: 13.5 BHST: 89 Prepared for: Andy Rike Casing Size: 10-3/4" BHCT 83 Submitted by: Joshua Herald Cement: T e I Water: Fresh Water - Source Tested b Josh Lot #: 1001 Date: 4/13/11 Slurry Design: 360- 13 1350 Base I Typel 100 Additives Free 10.051 % BWOC Gel 10 sec I 10 min 100 Ib/s ft500 Ib/sft Strength Mix Water: 1 9.446 Bingham Plastic PV I YP 3677 Free Water: Fluid Loss: I I cc/30min Consistometer g of Bearden Machine: I Jack 30 bc: 1 1 50 bc: 70 bc: 3:52 1 100 bc: 420 2W0 300— bur ¢ II " II 20000 - 12000- 2. I 3 -Or - ," I , 00- Compressive Strength D. Tem 1 5:38 1 11:57 8 hr 12 hr 24 hr 48 hr 72 hr 96 hr 89 F 50 psi 500 psi 270 503 1001 aoo 20 1500- 500360 360- 13 1350 320 18 1200 280 14loss. E240- 12BOo 5 � fl 200 E( p 10 750— 50180 'so- a- 600 120 F 950 80 T 6 T 300 40 2 150 O O O 4:00 e:oo 1 n 1600 20:Oo 2400 °:Oo m"e (wi:ama Notice: This report is presented good faith based upon present day technology and information provided: but because of variable coriditi00e and other information which must be relies upon, tlJ seances makes no warranty, express or implied. as to the accuracy of the data or of any calculations Or opinons expressed herein. You agree that &I Services shall not be liable for any loss or damage, whether due to negligence or otharvase, arising Out Of or in connector, with such data, calculations, .r opinons. Buccaneer Alaska Operations LL KENAI LOOP #1 API # 50-133-20595-0000 CANNERY LOOP Field 33 -6N -11W Kenai County, Alaska May 10, 2011 Intermediate Cement Post Job Report Prepared for: Andy Rike VP Operations Renaissance Alaska, LLC / Buccaneer Bus Phone: 713-468-1678 Mobile: 713-703-5175 I Proposal No: 1001141957H Prepared by: Joshua Herald Field Engineer Bus Phone: 907-776-4084 Email: Joshua.Herald@bjservices.com Mobile: 907-398-8303 POW ERVISIONO P0wr.isPe0 • Pu"r:n'I'snN • Powr:nLiNK Service Point: Service Representatives: Kenai Rod Edwards Bus Phone: (907) 776-4084 Account Manager (907) 659-2329 Kenai, Alaska Fax: (907) 776-4087 Bus Phone: 907-349-6518 Mobile: 907-229-6536 Gb,os Operator Name: Buccaneer Alaska Operations LL 1 Well Name: KENAI LOOP #1 ■ Job Description: 7.625 Intermediate Casing 13.5 & 15.8ppg ,� Date: May 10, 2011 1.83 cf/sack Proposal No: 1001141957H JOB AT A GLANCE Depth (TVD) 8,015 ft Depth (MD) 8,015 ft Hole Size 9.875 in Casing Size/Weight 7 5/8 in, 29.7 lbs/ft Pump Via 7 5/8" O.D. (6.875" .I.D) 29.7 # Total Mix Water Required 4,821 gals Weighted Spacer Seal Bond Spacer 30 bbls Density 10.0 ppg Lead Slurry Lead 13.5 ppg 388 sacks Density 13.5 ppg Yield 1.83 cf/sack Tail Slurry Tail Slurry 15.8 ppg 253 sacks Density 15.8 ppg Yield 1.16 cf/sack Displacement Drilling fluid 364 bbis ReNd Primed on May 18, 2D11 I:WPM Page 1 Gdt09 STIMULATION o CEMENTING o COMPLETION SERVICES o SERVICE TOOLS o COILED TUBING o PRODUCTION CHEMICALS o CASING AND TUBING RUNNING SERVICES o PIPELINE SERVICES o WELL CONTROL o CHEMICAL SERVICES Operator Name: Buccaneer Alaska Operations LL Well Name: KENAI LOOP #1 Job Description: 7.625 Intermediate Casing 13.5 & 15.8ppg Date: May 10, 2011 Lop J, Proposal No: 1001141957H WELL DATA ANNULAR GEOMETRY ANNULAR I.D. DEPTH ft (in) MEASURED TRUE VERTICAL 9.950 CASING 3,000 3,000 9.875 HOLE 8,015 8,015 SUSPENDED PIPES Float Collar set @ Mud Density Mud Type Est. Static Temp. Est. Circ. Temp. VOLUME CALCULATIONS 2,265 it x 0.2148 cf/ft 735 ft x 0.2148 cf/ft 80 ft x 0.2578 cf/ft with 46 % excess with 72 % excess with 0 % excess TOTAL SLURRY VOLUME 7,935 ft 9.20 ppg Brine Based 145°F 118 0 F = 708.2 cf = 272.1 cf = 20.6 cf (inside pipe) = 1001.0 cf 178 bbls Report PdnN on: M, 18. 2011130 PM Page 2 Gr4115 STIMULATION o CEMENTING o COMPLETION SERVICES o SERVICE TOOLS o COILED TUBING o PRODUCTION CHEMICALS CASING AND TUBING RUNNING SERVICES o PIPELINE SERVICES o WELLCONTROL 0 CHEMICAL SERVICES Operator Name: Buccaneer Alaska Operations LL Well Name: KENAI LOOP #1 .� Job Description: 7.625 Intermediate Casing 13.5 & 15.8ppg Date: May 10, 2011 Proposal No: 1001141957H FLUID SPECIFICATIONS Weighted Spacer 30.0 bbls Seal Bond Spacer + 92 lbs/bbl Barite - Sacked @ 10 ppg VOLUME VOLUME FLUID CU -FT FACTOR AMOUNT AND TYPE OF CEMENT Lead Slurry 708 / 1.83 = 388 sacks Class G Cement + 2.5% bwoc BA -56 + 0.15% bwoc R-3 + 0.5% bwoc EC -1 + 0.5% bwoc CD -32 + 0.1 % bwoc ASA -301 + 1 gals/100 sack FP -61- + 0.5% bwoc Sodium Metasilicate + 10% bwoc BA -90 + 0.05% bwoc Static Free + 81.7% Fresh Water Tail Slurry 293 / 1.16 = 253 sacks Class G Cement + 0.05% bwoc Static Free + 0.2% bwoc R-3 + 0.5% bwoc EC -1 + 0.6% bwoc FL -63 + 0.3% bwoc CD -32 + 1 gals/100 sack FP -6L + 43.7% Fresh Water Displacement 363.6 bbls Drilling fluid CEMENT PROPERTIES SLURRY SLURRY NO.1 NO.2 Slurry Weight (ppg) 13.50 15.80 Slurry Yield (cf/sack) 1.83 1.16 Amount of Mix Water (gps) 9.21 4.93 Amount of Mix Fluid (gps) 9.22 4.94 Report Printed on M, 18. 2011130 PM Page 3 G14129 STIMULATION o CEMENTING o COMPLETION SERVICES o SERVICE TOOLS o COILED TUBI NG o PRODUCTION CHEMICALS CASING AND TUBING RUNNING SERVICES o PIPELINE SERVICES o WELL CONTROL o CHEMICAL SERVICES Operator: Buccaneer Alaska Operations LL Well Name: KENAI LOOP #1 Date: May 10, 2011 Proposal No: 1001141957H PRODUCT DESCRIPTIONS ASA -301 Additive used to reduce or eliminate free water and settling in cement slurries. BA -56 A gas migration additive that controls fluid loss, limits free water and provides excellent solids support. It is functional at low to moderate temperatures ranges. BA -90 An non -compacted silica fume that produces high compressive strength, low density cement slurries which prevent annular gas migration by reducing slurry permeability. It can be used in the low to high temperature ranges. Barite - Sacked A naturally occuring mineral (Barium Sulfate). It is widely used as a weighting material in cement spacers and occasionally in cement slurries. It can yield a slurry density in excess of 19 lbs/gal. CD -32 A patented, free-flowing, water soluble polymer that is an efficient and effective dispersant for primary and remedial cementing. Class G Cement Intended for use as a basic cement from surface to 8000 It as manufactured, or can be used with accelerators and retarders to cover a wide range of well depths and temperatures. EC -1 A proprietary product that provides expansive properties and improves bonding at low to moderate temperatures. FL -63 A non -retarding, non-viscosifying fluid loss additive particularly suited for use with coil tubing and/or close tolerance liner cementing. FL -63 is effective from low to high temperatures. Concentrations of 0.2% to 1.0% BWOC are typical. FP -6L A clear liquid that decreases foaming in slurries during mixing. R-3 A low temperature retarder used in a wide range of slurry formulations to extend the slurry thickening time. SealBond Spacer Forms a non invasive seal to prevent filtrate invasion into the producing formation. Sodium Metasilicate An accelerator used to decrease the thickening time of cement slurries. ROWKPnnhEcn: Mry18,20111:30PM Page 6 014163 STIMULATION o CEMENTING o COMPLETION SERVICES o SERVICETOOLS o COILEDTUBINGo PRODUCTION CHEMICALS CASING Operator: Buccaneer Alaska Operations LL Well Name: KENAI LOOP #1 Date: May 10, 2011 Proposal No: 1001141957H PRODUCT DESCRIPTIONS (Continued) Static Free An anti -static additive used to prevent air entrainment due to agglomerated particles. Can be used in Cementing and Fracturing operations to aid in the flow of dry materials. Repro Pnnuw m: May 16. WI I i 30 PM Page 7 Gr4163 STIMULATION o CEMENTING o COMPLETION SERVICES o SERVICE TOOLS o COILED TUBING CASING BJ Services JobMaster Program Version 3.50 Jo Job Number: 811810053 Customer: Buccaneer Well Name: Kenai Loop 1 10000 2020 Buccaneer Kenai Loop 1 / FR: 611810053 500# test Batch Up Lead 4000# test Pump Sjpr Finish Tail Pump Away Spacer i Fixed/batch ad I 1st Shutdown 15 j Batch Up spacer ^ E I �r D/H Lead tM Q. 0 10- I Batch up ail & D/H J'CL 5000 5000 III 10 > rn N + ' I hr"�� CO 0 5bbl Displace a � a —5 0 0 0 50 100 150 170 ET (min) BJ Services Job Start: Saturday, April 30, 2011 CEMENT .: REPORT .- CUSTOMER CUSTOMER Buccaneer Alaska Operations,L DATE 28 -APR -11 F.R. # 611810053 (SERV. SUPV. CECIL J JONES LEASE & WELL NAME KENAI LOOP #1 - API 50133205950000 LOCATION 33 -6N -11W COUNTY -PARISH -BLOCK Kenai Alaska DISTRICT Kamer DRILLING CONTRACTOR RIG # TYPE OF JOB internned ate SIZE & TYPE OF PLUGS LIST-CSG-HARDWARF PHYSICAL SLURRY PROP -RTIFA Cement Plug, Rubber, Bottom 7-5/8 Cement Plug, Rubber, Top 7-5/8 in Float Collar, 7-5/8 - Butt Float Shoe, 7-5/8 - Butt SACKS SLURRY OF WGT CEMENT PPG SLURRY YLD FT3 WATER PUMP GPS TIME HR:MIN Bbl SLURRY Bbl MIX WATER MATERIALS FURNISHED BY BJ Seal Bond Spacer 101 1 1 30 Lead 13.5 ppg 368 13.5 1.83 9.21 126.14 85.08 Tail Slurry 15.8 ppg 2531 15.8 1.16 4.93 52,14 29.70 Drilling fluid 9.5 359 Water 8.34 5 Available Mix Water 500 Bbl. Available Dlspl. Fluid 500 Bbl. TOTAL L 572.27 114.78 HOLE TBG-CSG-D.P. COLLAR DEPTHS IZ !° P E W T. TYPED F STAGE 9.875 15 8024 7.625 29.7 CSG 8024 L-80 8024 7944 LAST CASING PKR-CMT RET -BR PL -LINER PERF. DEPTH TOP CONN WELL FLUID I DEPTH —TOP IBRAND & TYPE DEPTH1 10.75 1 45.5 3000 iNo Packer 0 _ �0 7.62 BUT- U DISPL. DISPL. VOLUME DISPL. FLUID CAL. PSI CAL. MAX PSI OP. MAX MAX TBG PSI MAX CSG PSI MIX VOLUME UOM TYPE WGT, BUMP PLUG TO REV. SO. PSI RATED i Operator RATED Operator WATER 364.3 1 BBLS Drilling fluid Water 9.6 8.34 I Rig EXPLANATION: TROUBLE SETTING TOOL, RUNNING CSG, ETC. PRIOR TO CEMENTING: PRESSURE/RATE DETAIL EXPLANATION TIME PRESSURE -PSI HR:MIN. pIPE r ANNULUS RATE I Bbl. FLUID FLUID BPM PUMPED TYPE SAFETY MEETING: BJ CREW X CO. REP. X TEST LINES 4000 PSI CIRCULATING WELL -RIG Xj BJ 11:00 ; i _ (April 29,11) Arrive on location. 11:05Speak to company man. 11:12 Hold safety meeting with crew. 11:25 Rig up to run cmt. 01:10 (April 30,11) Hold safety meeting on rig floor with BHI, rig and company man personal. »».°»..Start Job************** 01:30 Swap lines to BHI. 01:43 105 0 1.6 31 WATER Break circl with 3 bbl of water. 01:46 440 0 0 3 1 WATER Close in valve pressure test to 500psi. 01:51 4060 0 0 3 WATER Low pressure test good, increase to 4000psi. 01:59 97 0 0 3 WATER High pressure test good, bleed off pressure. 02:02 89 0 0 0 SPR Batch Up Spacer 02:06 76 0 0 O I SPR Notice problems with speed of spacer movement in mix tub. 02:14 1231 0 1 1 SPRPump spacer in tub down hole and attempt to rectify problem. 02:40 168 0 0 31 SPR Believe problem fixed - Batch up Spacer for second try. 03:03 117 0 1 4.41 SPR Desision made to pump rest of spacer. 03:10 300 0 255 SPR Finish Spacer. 03:12 35 0 0 0 LEAD Batch up Lead Cmt @ 13.5ppg 03:18 38 0 0 0 LEAD Lead Cmt not orbiting mix tub fast enough to ensure control of density 03:33 154 0 3.8 3 LEAD Pump 3 bbl of Lead Cmt to trash pit and thouroghly clean up pump. At this time, given close proximity of shop, the desision was made to call for Feild Supervisor. Rpm" Primo W: IMY-Y?ry 093516 Page 1 NW04 CEMENT JOB REPORT PRESSURE/RATE •.- .pY..2.11.15s Page 2 „M4 PRESSURE/RATE DETAIL EXPLANATION MEETING: BJ CREW X CO. REP. Q TIME HR. N. PPE SSURANNULUS RATE BPM Bbl. FLUID FLUID PUMPED TYPE TEST LINES 4000 PSI CIRCULATING WELL - RIG LAI BJ 03:57 1 61 01 0 1 01 LEAD j Feild Supervisor arrive on location / pumps cleaned / once agian ready to service. 04:09 75: 0 0 1 01 LEAD I Batch up Lead Cmt second time. Speed of recirculation in mix bowl much better. 04:14::94 0 3 _ I 1 LEAD Drop Bottom Plug - Start Lead Cmt @ 13.5ppg 04:19 561 0 5 20 LEAD 20 bbl lead away 04:22 j 4931 0 51 40 1 LEAD 140 bbl lead away 04:26 1 443 0 5 60 LEAD 160 bbl lead away 04:30 1 6031 0 5.6 801 LEAD 180 bbl lead away 0434 6501 0 5.7 100 LEAD '02d lead away 04:38 785 0 6 120 LEAD 120 bbl lead away 04:40 656 0 5.5 126.7 LEAD 126.7 bbl lead pumped - Increase weight to Tail Cmt @ 15.8 ppg 04:40 1 6511 0 5 1 11 TAIL Tail Cmt Started. 04:41 1591 0 2 1 10 iTAIL j 10 bbl tail away 04:45 213 0; 3 1 20 TAIL j 20 bbl tail away 04:47 j 5851 0 5 1 30TAIL 30 bbl tail away 04:50 588 0 5.2 j 401TAIL 40 bbl tail away 04:51 I 141 01 46.5 TAIL 46.5 bbl tail pumped - shut down. 04:55 154 0 1 0 WATER j Drop Top Plug 04:55 138 0 5 1 5 1 WATER I Pump 5 bbl fresh water for displacement. 04:56 0 0 _ 0 01 WATER I Shut down / turn over displacement of well to rig. ."..""."...""End of Cmt Job'""'"""""' 05:10 Hold rig down tail gate safety meeting. _ 05:25 1 Start Washup of pump and clean up of well site. Thank You for calling BHI Pressure Pumping. BUMPED PLUG I Y PSI TO BUMP PLUG TEST FLOAT EQUIP. Y fT j BBL.CMT RETURNS/� REVERSED] TOTAL PSI BBL. LEFTON I PUMPED I CSG 207 10 SPOT TOP OUT CEMENT Y SERVICE SUPERV OR SIGNATURE: f .pY..2.11.15s Page 2 „M4 ri.G BAKER HUGHES West Coast Area Laboratory Report Re ort #: CMT022311 B r_n16 M, 124 1 95 1 61 Bingham Plastic PV YP 0 95 30 24 cc/30min Client/Well Information: Com an : Buccaneer District: 1 I Depth MD: 8000 Field: Job Type: Intermediate Depth TVD: 8000 Well: Kenai Loop #1 Hole Size: 9 7/8" BHST: 145 Prepared for: Andy Rike Casin Size: 7 5/8" BHCT 118 Submitted by: Joshua Herald Cement: Class G Water: Fresh Water - Source Tested b : Dom Lot #: Alaska Date: 4/23/11 Slurry D- Base I Class G 100 % Additives F BA -90 1 10 1 Static Free 0.05 BA -56 2.5 % BWOCI % BWOC ASA -301 % BWOC A-2 SMS FP -61- C 0.1 % BWOC 1 % BWOC 1 al/100sac r_n16 M, 124 1 95 1 61 Bingham Plastic PV YP 0 95 30 Gel 10 sec 0 Fluid Loss: 24 cc/30min Gel 10 sec 10 min 100 Ib/s ft 500 Ib/sft Free Water: 90 deg 1 Strength Consistometer ..Bearden Machine: Curl 30 bc: 50 bc: 70 bc: 4:00 100 bc: e , oo ,o ae� •o 240- 0 40 o B aB� oo 00 0. Soo Compressive Strength D- Tem 5:00 8:02 8 hr 12 hr 24 hr 48 hr 72 hr 96 hr 145 F 50 si 500 psi 493 1156 1583 1782 1789 2000 ,aBa a. I.—,e0 200 ,9 g XO 1200 • 200,o ®(g OO so 'so- 1. - ao mo— o 0 0 a e ,9 z9 3z 90 mme l� <e ss 60 72 Notice: This report is presented good faith based upon present day technology and information provided: but because of variable conditions and other information which must be relied! upon, BJ Services makes no warranty, express or implied, as to the accuracy of the data Or of any calculations or opinions expressed herein. you agree that BJ Services shall not be liable for any loss or damage, whether due ro negngence or cinemas, ansng our or or in connecumn wnn suai ane, ceicwanms, m aµnmu. FiFAa BAKER HUGHES West Coast Area Laboratory Report Re ort #: CMT022411 A Gel 10 sec 10 min 100 Ib/s ft 500 Ib/s ft Strength Bingham Plastic PV I YP 1 0 93 3 54 1 cc/30min Client[Well Information: Com an : Buccaneer District: Kenai Depth MD: 8000 Field: 1 6 Job T e: Intermediate Depth TVD: 8000 Well: Kenai Loo #1 Hole Size: 9 7/8" MT: 145 Prepared for: And Rike Casing Size: 7 5/8" BHCT 118 Submitted by: Joshua Herald Cement: Class G Water: Fresh Water - Source Tested b : Dom Lot #: Alaska I Date: 4/23/11 Slurry Design: Static Free I 0.05 I % BWOC1 -61- 1 1 al/100sac Base I Class G 100 % Additives R-3 0.2 EC -1 0.5 FL -63 0.6 CD -32 1 0.3 1 % BWOC % BWOC % BWOC % BWOC Slurry Properties: Yield: 1 1.16 1 ft3/sac7I Mix Water: I4.937 al/sack Density: 15.8 Gel 10 sec 10 min 100 Ib/s ft 500 Ib/s ft Strength Bingham Plastic PV I YP 1 0 93 3 Free Water: 90 deg 1 0 Fluid Loss: 54 1 cc/30min Consistometer g of Bearden Machine: I Nemo 30 be: 50 bc: 70 be: 1 3:40 1 100 bc: 40000 - 360M - �Iso-¢,2° � 3 120- eo ° 300 1 6 Compressive Strength D. Tem 4:11 5:05 8 hr 12 hr 24 hr 48 hr 72 hr 96 hr 145 F 50 psi 1 500 psi 1 1480 1 2310 1 3156 3721 1 4019 2.-sono 360- 32 22 $$${{{ S. 7__- __�— '— -_.�--- 210 9 12 3000 � ecE 2� . a 3 50 Q I. 6 ,0 T1 Ivl 1.0 2 0 -- - '— 0 0 0 9 ,6 S< 32 60 r.e (HH) 43 55 80 72 Notice: This report is presented good faith based upon present day technology and information provided: but because of variable conditions and other inlormation which must be relied upon, W Services makes no warranty, express or implied, as to the accuracy of the data or of any calculations or opinons expressed herein. You agree that W Services shall not be liable for any loss or damage, whether due to negligence or otherwise, arising out of or in connection with such data, calculations, or opinions. :.KEY.I YIELD ILI I DWNEW DOC, D - 14ERIDI TWNSHp I RANGE EE.CIlON I SECPJETSj LMAPNUM'STATUS I DRILLER REGDN ' DOE PDESC ITASS1 REMI , I REME REM3 REM4 MDDDATE 26506 KENAI, CITY OF 15 Oa -93 360 SB 6 11 33 ] U KRAXBERGER DRILLING 21A 23 -Aug -02 AIRPORT WATER TANK, KENAI BP SW36FT,100GPM FULL CASE, OPEN END 17668 SATHER, JOHN 16-OCL47 36 SB 6 11 33 ACDD 1-11 5 NORTHIAND DRILLING ZIA 14 -Jan -92 THUMBLINA LBB LEWIS, LEANOR0 CINDERELLA AVE KENAI 48 SB 21783 HERRIN, PAT 34 ACAS 30 SB 6 11 33 DAAD 07 -Sep -93 L031 KENAI SPUR HIGHWAY U UNKNOWN 23A 09-No,92 JENNY LYNN Ll 21 SW ] F. 31 -Mar -98 20853 UNKNOWN 23 -Jul -82 30 SB 6 11 33 DAAD 1-14 S WS&SCO 21A 07-Felr92 JENNY LYNN L2 0I -Oct -93 12831 ADL 213060 BAGLEY, MIIDRED M 2S SS 6 11 33 DACE 1-9 5 UNKNOWN 21A 141an-92 L032 21380 LOWRY, ED O6 -Jun -83 107 SB 6 11 33 DACD 2-13 S PENINSULA DRILLING 214 234un-92 TREETOP L183 2y14.-92 21379 LOWRY, ED 14 -Jun -83 36SR 6 11 33 DACD 1-13 S PENINSULA DRILLING 21A 23 -Jun -92 TREE T0P L183 U 24-N.92 17618 BUCKINGHAM, DAVID Ol-Jul-76 26 SB 6 11 33 DBBD 3-8 5 UNKNOWN 21A 14Jan-92 KARDINAL 0 B1 M NO WELL LOG 27 -Sep -02 13551 BUCKINGHAM, DAVID O9-lul-86 1258 6 11 33 DBBD 1-8 5 AK DEC 214 14 -tan -92 KARDINAL 1381 TH-1 3558 6 21 -Jan -93 13550 BUCKINGHAM, DAVID 08-1u1-86 12 SB 6 31 33 DBBD 2-8 S AK DEC 21A 14 -Jan -92 KARDINAL 13 BI TH-2 21 -Jan -93 17281 ADL 20.14_06_ C0OK, CHESTER L 35 SB 6 IS 33 DBCA 1-30 S UNKNOWN 31A 144an-92 HUTT0 L2 M NO WELL LOG 27-Se"2 1]61T FORBES, DAVE l0SeP76 30SR 6 11 33 DBCB 1-12 5 KRAKBERGER DRILLING 210, 144an-92 CINDERELLA 11 NO WELL LOG. 19834 NUXOU, FRED WHITFORD, R 56 6 Il 33 DBCC 34 ADS U UNKNOWN 21A 14Jan42 ENCHANTED FOREST LIZ 8, KENAI M NO WELL LOG. Da -Mar -98 13844 KENAI, CITY OF 01 -Jan -60 465B 6 11 33 DCDA 1-3 S SPIELMAN 21A IFJan-92 KEN] CENTRAL HIGH SCHOOL P 17 -Feb -83 17631 ALLEN, DALE E 01 -Jan -71 117 SB 6 11 33 DODD 01 -Dec -80 U UNKNOWN 21A 144an-92 RAPPE-GAUAM L02 M 1-21 SW 78 FT; 15 GPM 0&Oec-99 23A 14 -Jan -92 W27 02 -Dec -92 21974 GONZALES, KAREN 13-5eP82 30 SS 6 11 YIELD. 21299 WEBB,SIDNEY 16 -Mar -77 3858 6 31 34 U KRAXBERGER DRILLING 21 02 -Jun -92 CANDLELIGHT DRIVE 14 -Jun DI 2184 MESSER,TERRY 01 -Jan -82 30 SB 6 11 34 YIELD. U LARRYGIOVIG 21A O9-Nw-92 HELEN J0NES LI BI M NO WELL LOG. 17 -Mar -98 2126 DOYLE,JIM 03 -Sep -91 157 SB 6 11 34 1-lan-92 GIESSEN Tr 181 U KRAKBERGER DRILLING 23A 14 -Jan -92 KENAI SPUR ROAD CANDLELIGHT DRIVE 23 -ILII -98 SW 40 FT; 30 GPM 27-DAc-99 31-10y86 9558 6 11 34 ADC U THEWATERCO 21A 141an-92 GIBBON Tr 181 MUD SLURRY PLUG. YIELD. 0&MaY-98 2114 HABERTHUR,JERRY I1-Now31 45 SB 6 IS 34A U KRAKBERGER DRILLING 21A 14Jan-92 KENAI SPUR R0AD 8, DAVIDSON STREET SW 13 FT; 15 GPM 27 -Dec -99 SEE WELTS 22359 22409 LEWIS, LEANOR0 48 SB 6 it 34 ACAS U UNKNOWN 23A 07 -Sep -93 L031 KENAI SPUR HIGHWAY M NO WELL LOG. SW 4.4 GPM PUMP RATE. FOR OTHER WELL 21 3FF -Apr -98 ON LOT. SEE WELTSNUMBER 22359 LEWIS, LEANDRO 1558 6 11 34 ACAS U UNKNOWN 23A I7 -Aug -93 L031, KENAI M NO WELL LOG. 22409 FOR OTHER 21 -Apr -98 WELL ON LOT. 21810 AHFC 3558 6 31 34 ACED U UNKNOWN 21A 08 -Dec -92 W34 M NO WELL LOG. SW >B GPM PUMP RATE. OT -Apr -98 32 R. 22362 WYATT, OMNA 01 -Jan -82 3158 6 11 34 ADM U DARC ENTERPRISES 21A 17-qug-93 L022, KEN] M NO WELL LOG. 20 -Apr -98 23973 WHITFORD, R 33 SB 6 11 34 ADS U UNKNOWN 21A 05 -Dec -97 L022, NORTH HALE M NO WELL LOG - 08 -Dec -97 LOCATION ONLY 20126 YRAGUI,MARYJEANNE 01 -Dec -80 4258 6 11 34 AOBC 1-21 S W S &SCO 23A 14 -Jan -92 W27 02 -Dec -92 21974 GONZALES, KAREN 13-5eP82 30 SS 6 11 34 ADBD U W S &SCO 21A 09-Feb93 L325, KEN] SPUR ROAD SW 8 FT; 12 GPM 15-1)ec-99 YIELD. 15724 BARBER, DAN IS -Aug -88 30 SB 6 11 34 ADC U THE WATER CO 21A 1-lan-92 GIESSEN Tr 181 SW 31 R; 2 GPM. 23 -ILII -98 12554 BARBER, DAN 31-10y86 9558 6 11 34 ADC U THEWATERCO 21A 141an-92 GIBBON Tr 181 MUD SLURRY PLUG. 0&MaY-98 15725 BARBER, DAN 22 -Aug -88 38 50 6 11 34 ADC U THE WATER CO 21A 14Jan-92 GIBBSON Tr 181 DRY HOLE. 21-1ul-98 20127 TENGEUN,JOHN 01 -AFI 188 SB 6 11 34 ADDS 1-21 S DARC ENTERPRISES 21A 14Jan-92 U0 02 -Dec -92 3754 GOULDING,JOHN 30 -Apr -83 35 SB 6 11 34 BCCB U ECHO LAKE DRILLING 2/A 14 -Jan -92 KEMPF LT BI SW8FTWGPM OS -May -98 YIELD. 19836 MATTSON, WIWAM X. 30 SB 6 31 348CYC 1-23 S UNKNOWN 21A 14Jan-92 KEITH M NO WELL LOG 03 -May -02 19835 BROECKEL, DALE O8 -Jun -84 32 SB 6 11 34 BCCC 2-23 S PENINSULA DRILLING 21A 14Jan-92 KEITH LL 2D0d-94 22360 EVERSON, NORRIS 48 SB 6 11 34 BCOC U UNKNOWN 21A 17 -Aug -93 L0SS, KENAI M NO WELL LOG. ZOApT-98 12716 ADL 40138 DOYLE, JAMES 38SB 6 31 34SOCA U UNKNOWN 214, 14Jan-92 L051 M NO WELL LOG, O8 -May -98 20131 GLAD REALTY 21 SB 6 11 34 CMD U KENNY CARVER DRILLING 21A 144an-92 RASMUSSEN L02A M NO WELL LOG. SEE WELTS 12456 FOR 22 -Apr -98 OTHER WELL ON LOT. 20125 GLAD REALTY 12 -Oct -81 1258 6 11 34 CMD 2-18 S NORTHERNTESTLAB ZIA 14 -Jan -92 RASMUSSEN L02ATH-5 02 -Dec -92 20130 GLAD REALTY 12-0d-81 14 SB 6 11 34 CMD LIS 5 NORTHERN TEST LAB 21A 14Jan-92 RASMUSSEN L02A Tll 6 02 -Dec -92 22456 RASMUSSEN, MARTIN 27 SB 6 11 34 CMD U UNKNOWN 21A 07-SeP93 RASMUSSEN 02 AKA IIA M NO WELL LOG. SEE WELTS 20131 FOR 22 -Apr -98 OTHER WELL ON LOT. 14766 ADL W9327 PETERS, FRANK D 42 SB 6 11 34 CABO 1-30 S UNKNOWN 21A 141an-92 W90 19837 BURNER, W.M. 01 -Jan -82 30 SB 6 11 34 CADS 1-22 S UNKNOWN 21A 14 -Jan -92 KIANA L0182, KENAI AREA M NO WELL LOG 03 -May -02 17588 WILLIAMS. JOHN 40 SB 6 11 34 CAM U UNKNOWN 21A 141an-92 SHARON 10 M NOWELLLOG, I&Sep-01 LOCATION ONLY. 17589 WILLIAMS,JOHN 40SB 6 11 34 CADE U UNKNOWN ZIA 14 -Jan -92 SHARON IL4 M NO WELL LOG, 18-SeP01 LOCATION ONLY. 660 ADL 209549 UNKNOWN 01-Nw-75 3150 6 11 34 CADC 1-13 5 ECHO LAKE DRILLING 21A 14Jan-92 SHARON I2 11587 WEBB, SIDNEY 01 -Jun -71 4058 6 11 34 CADD U ECHO LAKE DRILLING 21A 14 -Jan -92 AMERICAN U20A M NO WELL LOG. SW 31 FT. 60 GPM YIELD. OB -Dec -99 19311 WEBB,SIDNEYA 01 -Jul -78 4058 6 11 34 CADD U ECHO LAKE DRILLING 21A 10.Jan-92 AMERICAN L120C M NO WELL LOG. 09 -Dec -99 22363 WEBB, SIDNEY 3056 6 11 34 CADD U UNKNOWN 23A 17 -Aug -93 L120, KENAI M NO WELL LOG. 2D -Apr -98 22361 SHEW, 058 6 11 34 CBB U UNKNOWN 21A 17 -Aug -931-083, KENAI M NO WELL LOG. 20 -Apr -98 19587 BIELEFELD, ROBERT 01-Im-61 15 SB 6 11 34 CBBC 1-5 S JERRY HOBART 21A 14 -Jan -92 KENAI M NO WELL LOG 11262 ADL40463 MCRAE, AWE" SSSS 6 11 34 CBCA 1-11 S UNKNOWN 21A 14 -Jan -92 KAKNU 0B2 M NO WELL L_OG 11 -May -02 27 -Sep -02 21111 UNKNOWN 01 -Jan -67 OSB 6 it 34 CBCO U UNKNOWN 23A O3Nov-92 KAKNU KORNERS 1-381 M ON CITY WATER rV 24 -Mar -98 23364 EVAN, JACK 4158 6 11 34 CBDA U UNKNOWN 21A 12-Jv1-96STOCK LA 81 M NO WELL LOG. SW 12.5 FT. 7.5 GPM 03-Sep96 17643 ADL 203018 ALTHAUSER, GORDON 01 -Dec -77 2558 6 11 34 CCAD 1-9 5 NORTHLAND DRILLING 21A 14 -Jan -92 HELEN JONES IS BI NEWOWNER:WILCOK, UNWOODIANE W KENAI 27 -Sep -02 20797 SAWYER, MIKE 18 -Nov -92 33 58 6 11 34 CCBD U KRAKBERGER DRILLING 21A 14 -Jan -92 HOOD 1 L3 SW 9 FT; 30 GPM YIELD. 13-1)ec-99 11958 HOOD, WL 0&Apr-18 3258 6 31 30 CCBD 1-16 5 UNKNOWN 21A 14Jan-92 HOOD 112 M GPM YIELD NO WELL LOG 32 -Jan -96 22455 CLARK,GERALD SB 6 11 34 COOS U UNKNOWN 23A 07 -Se 93 SCALF L181 M NOWELL LOG. 22 -Apr -98 22365 MATFIELD, WILFORD SB 6 11 34 CCDD U UNKNOWN 21A 17 -Aug -93 1-370, KENAI M NO WELL LOG. 20 -Apr -98 16053 HOOD, W L 01 -Jan -78 41 SB 6 11 34 CDBC 1-17 S LARRYGJOVIG 21A 14 -Jan -92 HOOD L3 M NO WELL LOG 27 -Sep -02 14907 ADL 40330 NEETHER, DALEA 2558 6 11 34 CODC 1-12 S UNKNOWN 21A 14 -Jan -92 L173 M NO WELL LOG 2Mep-02 12188 AOL 40338 LATTA, DUANEJ 20SO 6 11 34 OBAt 1-14 5 UNKNOWN 21A 14 -Jan -92 L095 M NO WELL LOG 22W JOHNSTON CONSTRUCTION 1&May-82 43 SB 6 11 34 DBAC 2-14 5 KRAKBERGER DRILLING 21A 14 -Jan -92 L095 27 -Sep -02 22358 LATTA, DUANE 01 -Jan -82 42 SB 6 11 34 DBAC U KRAKBERGER DRILLING 21A 17 -Aug -93 L095, KENAI M NO WELL LAG. 20�Apr-98 17641 KILGORE, BOYO 07 -Nov -81 3258 6 11 34 DBBA 1-15 5 PENINSULA DRILLING 21A 14-1an-92 DAVIDSON HOMESTEAD 2 L -E 22364 WHITE, HAROLD 25 S8 6 11 34 DBCC U UNKNOWN 21A 17 -Aug -93 L121, KENAI M NO WELL LOG, 20 -Apr -98 20126 BOGUE,GARY 30 -Apr -82 3450 6 11 34 MOD 1-19 5 PENINSULA DRILLING 21A 14 -Jan -92 L150 2095 FIDLER, DON 25 -Aug -80 3758 6 11 34 DCDD 1-24 S KRAKBERGER DRILLING 21A 14 L178 02 -Dec -92 -Jan -92 24 -Nov -92 Kraxberger Drilling Co. Well Drilling log Well owner: K.enat,11ty Builder: Road/Brea: By to i tanlSat_lilrRllr# Legal 1: Driller: li.RK Completion: 10/15/93. City: tCenai Legal2: Depth: 36B Casing length: 162 Diameter: 6 Rig type: RR Static leuel: -34 Yield/GPM 11118. Finish of well: 1--15-&a-nd-P _.g_ra v.e.( 36-33 slay 51-57 gra u lat-&-gra.y _.clay x_74 Tir_1n._sa�r d,.silt,.11t!a�ter 82-88 hard sticky _.g.ray_.cla.y 1311-135_bard-gray-cUy 1-4 5 V5 3- gr -ay _.clay -647.1.6$_gray cel _y. 184-!! 1.93_san.d,water,coal 197-2113_s.and,.gr-a,m aie r5 Ba.Rm -2Z7 - san.dt t ome, .w a Io r___3_QgP_ 1A-�s an..d, g.ralt_l,wa3 f 3.7.-5,1 _ sanl,gru,-wat.er..(57:$p_pniI 5-7-b2 sand,grv-,_sAtjuAJLer 74-02 s1t,sand ,ela g._w_ tete r 8th-131�Ltt.,tans_,ctag,►pater 133=193.. silt sand,water 1.68 189 gr�y��g,gralzl�l 19�.197_sa_r1 d,gr�, c.l ay, lU.at e_r 283-224sandstone,-ater__ 727.-.Z5_8s-a-ftlme,water 1-8ggp Kramberger Drilling Co. Well Drilling tog Well owner: K.mai,Ctt.y. Driller: RRK Completion: .9115/93 Builder: City: Kenal Road/Area: By_tpater tank at RirpoA Legal 1: Legal2: pnge2 Depth: 360 Casing length:36" Diameter: 6 Rig type: RR Static leuel: 36 Yield/GPM 19Q. Finish of well: 22.7.-.25.9 sa"Onn_e,uh3ter_ 109.9R. 2.5.$.7267.barA-grimy cloy 510.MI-semi lid_s_anAs_to m t9Rgpm-water trsant(Ianninl Jested tor-lron.lnss t6_e_p_1Rpm 218 �-_25�aUdstone F�S�B_I Immin pr_e-ernt from -L9-7-368 PERMIT AND CERTIFICATE OF APPROPRIATION OF WATER Certificate No. ..47.3.9 .................... Xmim A11 MPri Wg Ul 4vor 11r=seats that the State of Alaska, pursuant to A.S. 46.15, as amended and the Hiles and regulations promulgated thereunder, hereby grants to ...... �H�57�R..1�:...�OPK ............ ................................................. the right to the use of. ..... .`jjQ..aslions... p.tr. V...•............from the public waters of the State of Alaska for the purposes of.....domestiC.use•in a, multi,:family„dwelling;,,..,, The location of the water source to which the water right herein granted shall appertain is............ dril.1.�d„y�@11,.35..feet,.deep,within, Lot, 2,, Hutto, Subdi.vi,sion_,located„within•,S!;IgN41aSEA g�t7.An..3,..TaWn.$hia...6..N.arth,..Rd!?Qe..�l..�1��t. Se4tald M�7dian............................................. and the right to said, water shall be appurtenant to that certain tract of real Property described as follows: ax Lot 2, Hutto Subdivision located within S:,l4NIA4SE4 Section 33, Township 6 North, �. Range 11 itest, Seward Meridian ADL ?61f (0 Nv q r1 �•J„i.oi Lot `4 `r69 ;v aJ 11 r,r L' J-1 � vRAviL DR � A I _ tb•'1 - _l -.,p'_ I 14.4 132.13 I WtsT UMINVR.oY6D LOT LOT 21 HUTTO .SUB7)IVI5IfN CITY O= VN.4?, ALASKA n{ _ _�' F• a V r o I hereby certify that thn above—:scribed prooe.rty was surveyed under my dirmction, and hilldinr, v,i , -:ect.ic tank and enss pool located +ar shown hnr-on. I furtr.nr eertify that dimmnsions and bearings given aro- tru- and torrr.•t, to the best of my knowledRe and l:eliet', aril that compnr:ative elevations are as shown. Thetre cr.a no oncronchm-nts involvrd. Date 0 ' r . i„rn? Surveyor 4/41. iror. pins on cors. tpyyJVkt•C P n n w n I n n i aeoauerRvo+lrE 012W 32 ]i ik • . �N ,I l x ue -KM - :\ �T A I Water Estate Map (public) Date Created: Wednesday, August 3, 2011 Resource Links Alaska State Geo -spatial Data Clearinghouse http://www.asgdc.state.ak.us Land Administration System http://www.dnr. state. ak.us/las State Recorder's Office http://www.dnr.state.ak.us/ssd/recoff Alaska Land Records http://plats.landrecords.info Plat Information Management System (PIMS) http://plats.landrecords.info/PIMS DNR Business Reporting System http://reports.dnr.alaska.gov Map Legend Instream Flow Reservation Instream Flow Reservation Instream Flow Reservation * Water Right Subsurface ■ Water Right Surface • Cities 1 City Boundary Borough Boundary L1 Recording District Alaska Seaward Boundary ❑ Alaska Seaward Boundary State Control Monument NGS Monument • Survey — Survey O Survey Township Section ❑ USGS Quad 250,000 Highway Major Roads Secondary Road } Airstrip J Airstrip _ Trail '++ Pipeline Trans Alaska Pipeline F F Railroad —' Electrical w+ Telephone Hydrography Hydrography M aj o r Likes F Major Lakes Mjor Rivers Mjor Rivers Alaska Coast 63,360 AJaska Coast Simplified World Outline Water Estate Map (public) Alaska Mapper NAD 83 Alaska Albers Equal Area 1,000 survey ft In stream flow Reservation Innraam flow Reservation hatream flow Rttarvaflon 0 li Right Subsarlace ■ Water Right Surfau • Cities L-1 Cid, Boundary LI Borough Boundary LI Recording District Naska Seaward Boundary 0 Alaska Seaward Boundary State Convoi N onpm ent NLS M Drum sit • Survey Suva, ❑ Survey Township Section [I USCS Quad 250.000 Highway M aid, Roads Seton day Road ? Airship C j NrsMip TNI ... Pipeline Trans Nash Pipeline k -k Railroad a. Electrical r+' Telephona Nydrography Nydrography Major Lakes ■ Major Lakes Njor Rivas ■ Njor Rivers Naska Coast 63.360 Naska Coast Sim plilied World Odin, ILLUSTRATION RW ADZ 42528 * CERT 1SSVED L7 7- isi/ _ ��yA/ Good �/ .�i�.�dsAc ��rr,Tdc�rloi✓ ����c�r�i�/ - 5��✓•vr �✓�res y IOD ' �°rsi �sr �77u- — /N..7�'�T �.PLC� fc/liLzs 30SsT ��1�i✓G Sf,L+�>iJ0 ' ��?0�7d� G'�> — f�� /F %�i✓/' GOnD �Aiy� S /.✓ /i✓Td"�YAL .<`o,C !NT/-�i-�. - d AG/N/Tl�s' /o✓ <SANLSd .� ,,vy�Qpafa�j>/ . - „(i0E"/✓7 i4.�3aE,�,� �� .� A�� fes' /N %� /i✓ IT�Yf�L /�/asr of �SEDTIor�( /- � .!�/�,rE��'T /✓O.LIoG.�d���!` Loc- � C/s��/r�� A-8 RESISTIVITY NOMOGRAPH FOR NaCl SOLUTIONS OF °C 50kW--� Conversion approximated by: g/kq Groins/gal 60 or 02400 k ppm or75+F T,+6.77 R R .aF 300 17500 702 I Tx+6.7T (Arps)' 200 13000 10000 60 or loo 80 3000 90R2=RII, T,+21.5 �''C 60 4000 Ts+21.3 40 3000 100 30 2000 20 1000 50 10 a 500 190 $60 -1-400 300 4 1L} iW5=2h : 140 300 160 760 R f01 y 8 d 03 .04 .05 .O6 .Oe !i! 2 3 4 .8#50 ,�°2 40 .630 3 .4 120 2 ,31 4 S 6 ©Schlumoerger 6 N 20 Y Gen -9 i L Ott • STATE OF ALASKA • ALASKA OIL AND GAS CONSERVATION COMMISSION WELL COMPLETION OR RECOMPLETION REPORT AND LOG 1a.Well Status: Olt❑ Gas El SPLUG ❑ other ❑ Abandoned ❑ suspended❑ lb.Well Class: 2OAAC 25.105 20AAC 25.110 Development ❑ Exploratory Fl GINJ ❑ WINJ ❑ WAG❑ WDSPL❑ No.of Completions: Service ❑ Stratigraphic Test ❑ 2.Operator Name: 5.Date Comp.,Susp.,or 12.Permit to Drift Number: Buccaneer Alaska Operations,LLC Abend.: 6/28/2011 211 043 3.Address: 6.Date Spudded: 13.API Number: P' 952 Echo Lane,Suite 420,Houston,Texas 77024 4/15/2011 50-133205950000 4a.Location of Well(Goverrenentild Section): 7.Date TD Reached: 14.Well Name and Number: Surface: 1888 FNL 1064'FWL Sec 33 TOON R11W SM 5/9/2011 Kenai Loop#1 Top of Productive Horizon: 8.KB(ft above MSL): 155 15.Fwd/Pool(s): 2068'FNL 1106'FWL Sec 33 T06N R11W SM GL(ft above MSL): 134 Kenai Pennisula Explorati Total Depth: 9.Plug Back D MD+TVD): < �, To yl e{Z-`7 2114'FNL 1162'FWL Sec 33 TOON R11W SM 10585MD/10573TVD 4b.Location of Well(State Base Plane CoonimMes,NAD 27): 10.Total Depth(MD+TVD): 16.Property Designation: Surface: x- 279518.13 y-2402268.55 Zone- 4 1068t7MD/106671VD MHT 9300082 TPI: x- 279583.34 y-2402087.89 Zone- 4 11.SSSV Depth(MD+TVD): 17.Land Use Permit: Total Depth: x- 279639.09 y-2402040.42 Zone- 4 535.29`MDIIVD City of Kenai,Conditional Use Permit 18.Directional Survey: Yes p No 0 19.Water Depth,if Offshore: 20.Thickness of Permafrost MD+TVD: (Submit electronic and printed information per 20 MC 25.050) (ft MSL) na 21.Logs Obtained(List all logs here and submit electronic and printed`information per 20AAC25.071): 22.Re-driWLaterai Top Window MDTIVD: Surface 27APR2011_HDIL-XMAC-ML-GR-CAL_BA INTM 23. CASING,LINER AND CEMENTING RECORD WT.PER SETTING DEPTH MD SETTING DEPTH TVD AMOUNT CASING GRADE TOP BOTTOM TOP BOTTOM/ HOLE SIZE CEMENTING RECORD PULLED 16 84 k 0 138 0 138 na na 10.75 45.5 1(55 0 3057 0 30815 '13.5 1470 sx©12ppg(yld 2.30) 7.625 29.7 L80 0 8024 0 8021 9.625 388sx t13.5+253©15.8 4.5 12.6 L80 7892 10680 7889 10667 6.75 471sx fg15.8ppg(1.18 yki) 24.Open to production or lion? Yes in No❑ If Yes,UM each 25. TUBING RECORD eiterval open(MD+TVD of Top&Bottom;Perforation Size and Number): SIZE DEPTH SET(MD) PACKER SET(MD/TVD) Two Zones Top Zone 9705-25'MD/9698'-9717'TVD 119 shots ta 6spf 2.875 6.5ppf L80 9666' 9666'MD/9659'WD HMX BTM zone 10008-49`MD/10000-40'TVD 249 shots @ asp(HMX 26. ACID,FRACTURE,CEMENT SQUEEZE,ETC. I COMPLE1'om DEPTH INTERVAL(MD) AMOUNT AND KIND OF MATERIAL USED ./L 1 27. PRODUCTION TEST Date First Production: Method of Operation(Flowing,gas Mt.etc.): 5/23/2011 (Wel Test only) flowina Date of Test: Howe Tested: Production for Ohl-Bbl: Gas-MCF: Water-Bbl: Choke Size: Gas-Oil Ratio: 5/23/2011 2.08 Test Period .=.► 0 600 0 16/64" N/A 'Flow Tubing Casing Press: Cawed Oil-Bbl: Gas-MCF: 0 Oil Gravity-API(corr): Press. 3937 2580 24-Has'Rate ...► 0 6920 N/A 128. CORE DATA Conventional Core(s)Acquired? Yes ❑ No 19 Sidewall Cores Acquired? Yes ❑ No 0 If Yes to either question,list formations and intervals cored(MO►TVD of top and bottom of each),and summarize It ology and presence of oil,gas or water (submit separate sheets with this form,if needed).Submit detailed desaaplons,core daps, analytical results per 20 MC 25.071. AiVG 04'2011 RBDMS AUG 0 8 2011 0 4 :.. 4t1 Form 10-407 Revised 12/2009 CONTINUED ON REVERSE Submit original only TONY KNOWLES, GOVERNOR ALASKA OIL AND GAS 3001 PORCUPINE DRIVE CONSERVATION COMMISSION ANCHORAGE, ALASKA 99501-3192 PHONE: (907) 279-1433 February 8, 1996 FAX: (907) 276-7542 Michael J. Stover _ Marathon Oil Company P.O. Box 196168 Anchorage, Ak. 99519-6168 Dear Mr. Stover; Y C �` "` lc� 1 am writing to explain the long standing Alaska Oil and Gas Conservation Commission (AOGCC) interpretation that the Cannery Loop Unit and the Kenai Unit together comprise the Kenai Gas Field and the implications this fact has on Class II disposal operations proposed for the Cannery Loop Unit. Section 31.05.170 (5) of the Alaska Statutes defines the term "field" in the following way; "field means the general area which is underlain or appears to be underlain by at least one pool, and includes the underground reservoir containing oil or gas; and the words "pool" and "field" mean the same thing when only one underground reservoir is involved, but "field" unlike "pool' may relate to two or more pools;". The Cannery Loop Unit and the Kenai Unit each contain multiple gas pools, which are so closely adjacent to each other, that for the purposes of the Commission, we consider them to jointly constitute a single "general area". The two units share a common boundary through Sections 17,18 and 20 of TSN and RI 1 W, Seward Meridian and therefore comprise a single contiguous area. The Commission considers the Kenai Field Area to correspond to the combined areas of the Kenai and Cannery Loop Units. The attached letter dated November 21, 1995 from Grover Partee of the Environmental Protection Agency references the 40 CFR 147.102(b) (1) (c) exemption for Class II injection activities of all aquifers below 1300 feet within the Kenai Gas Field and one-quarter mile beyond. This letter clearly states that if the AOGCC considers the Cannery Loop Unit to be within the Kenai Gas Field the subject exemption applies to the Cannery Loop Unit. You are hearby advised that the 40 CFR 147.102(b) (1) (c) exemption for Class II injection activities in the Kenai Gas Field applies to the Cannery Loop Unit. Sincerely Robert P. Crandall Senior Pertoleum Geologist Attachment cc: Blair Wondzell Grover Partee M Marathon MiXATXON Oil Company Februar,/ 6, 1996 Blair Wondzell Alaska Oil & Gas Conservation Commission 3001 Porcupine Dr. Anchorage, AK 99501 Dear Mr. Wondzell: Alaska ion Domes :oduction P.O. Box 196168 Anchorage, AK 99519-6168 Telephone 907/561-5311 As per our previous conversations and subsequent letter from the EPA, it has been concluded that the AOGCC considers the Cannery Loop Unit to be part of the Kenai Gas Field. As such the Cannery Loop Unit has been exempted for Class II injection. However, prior to Marathon formally applying for an Application for Underground Injection at Cannery Loop Unit #3 it is requested AOGCC provide Marathon a letter stating and/or including the following: 1) The Cannery Loop Unit is within the Kenai Gas Field with reference to that effect with some general land descriptions such as descriptions of sections of land or whole townships of lands. 2) An acknowledgement that in addition to the Cannery Loop Unit being part of the Kenai Gas Field, there is an existing aquifer exemption pursuant to the EPA's approval of the AOGCC Class II UIC program, for all formations in the Kenai Gas Field beneath 1300 feet. 3) The AOGCC has determined one of the specific grounds for an aquifer exemption, as set forth at 20 AAC 25.440 (A)(1) [e.g. its so deep recovery for drinking water purposes is economically and technologically impractical), does apply to the intended disposal interval in the Beluga formation. 4) The letter should also specifically incorporate the November 21, 1995 letter from the EPA. Your assistance with this matter is greatly appreciated. If there are any questions, please contact me at (907) 564-6403. Sincerely yours, ' FEB 0 7 1996 Michael J. Stover Alaska Oil t; 0'83 Cons.1 AnGtlora0e MJS1kz:H:\W P\ENG\WONDZELL A subsidiary of USX Corporation Environmentally aware for the long run. J' "JG ;e <° UNITED STATES ENVIRONMENTAL PROTECTION AGENCY REGION 10 1200 Sixth Avenue Seattle, Washington 98101 November. 21, 1995 Reply to the attn. of: WD -133 Blair Wondzell Alaska oil & Gas Conservation Commission 3001 Porcupine Dr Anchorage, AK 99501 Dear Mr Wondzell: .Your question was whether or not the Cannery Loop Unit of the Kenai Gas Field has been exempted for Class II fluid injection. A thorough search of our files by Harold Scott has revealed 1Q detailed areal description of the Kenai Gas Field which was f exempted for Class II injections by EPA prior to delegation of the Class II portion of the Underground Injection Control program to AOGCC. All of the documents address the then -existing Marathon gas production and disposal wells. While all of these appear to have been within the Kenai Unit, the exemption is for the field. Also, we found nothing to indicate that areas outside the Unit were not exempted. It therefore appears that, if AOGCC considers the Cannery Loop Unit to be part of the Kenai Gas Field, then the Cannery Loop Unit has been exempted for Class II injections. If you have any further questions, please do not hesitate to call me. 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Emd m.Emp pr, o� I P5 w m w m m m a O� a ptD S' w t� EP mI° ��nyCm r P r m° m^ yOO E aj m YA @p � €CC m� mr-mw �•p• o�� O'a s¢ 11p Im m m m G w m O "l mOmy 6 imp €Cmb �i app,R rCYee w S°mm �iam i°nCW mn°WbM a p $ Y �wwG pA C2l cwrRyn m'PV m � €CC �p w " y p�O Vm"ormP�tl! m O Op 0 rs ro s¢ 11p Im m m m G w m O "l mOmy 6 p a ,C Ry�aFw OR3 R opp w� d w S°mm �iam i°nCW � m A- - v O O O 0 O I D D c m x m 3 ma 1 0 n Tn /v 4 O N Cr W cn cn cn 0') rn 00 cD (D o 0 0 0 0 0 0 �0 0 0 0 0 0 A- - v O O O 0 O I D D c m x m 3 ma 1 0 n Tn /v 4 O N Cr W • • 29. GEOLOGIC MARKERS (list all formations and markets encountered): 30. FORMATION TESTS NAME MD ND Well tested? Yes 0 No If yes,list intervals and formations tested, briefly summanzing test results,Attach separate to this form,if Permafrost-Top na needed,and submit detailed test information per 20 AAC 25.071, Permafrost-Base na Quaternary 0" p Beluga-top 5590` 5587`tvd Tyonek-top 82570 8254'tvd Dual 20ftes T,'ed Combined results FTP Gas mcf Gillviater 3937 6920 0 T Top Zone 9705-25' $98'-9717° 119 shots t 6spf HMX Bottom cn 1 r=tze 8.19` 10000-417 249 shots @ 6spf HMX Formation at total depth Tyonek 10680' 10667 hid 31, List of Attachments: Drilling Summary,WBS 32, I hereby certify that the foregoing is true and correct to the best of my knowledge, Contact: Stephen Hennigan 337 849 5345 Printed Name: :A.Rike / Title: EVP Operations Buccaneer Alaska,LLC Aar Signature= �r Phone: 713 468 1678 Date: 7/25/2011 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 dram with each 10-407 well completion report and 10-404 well sundry report when the downhole resign is changed Item lb:Classification of Service wells Gas!election,Water Injection,Water-Alternating-Gas Injection,SA Water Disposal:Water Simply for injection,Observation,or Other,Mult` completion is defined as a well producing from more than one pool with production from each pool completely segregated. Each segregated pool is a completion. Item 4b.TPI(Top of Producing Interval). Item 8'The Kelly Bushing and Ground Level elevations in feet above mean sea level. Use same as referemce 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 dgis(ex:50.1129-20123-00.00). Item 20:Report true vertical thickness of permafrost in Box 20. Provide MD and TVD for the top and base of permafrost in Box 28, Item 23; Attached supplemental records for this well should show the details of any multiple stage cemeeting and the location of the eementing tool. Item 24: If this well is completed for separate production from more than one interval(multiple completion),to state in item 1,and in tem 23 show the producing intervals for only the interval reported in item 26. (Submit a separate form for each additional interval to be separately produced,showing the data pertinent to such interval): Item 27:Method of Operation: Flowing,Gas Lift,Rod Pump,Hydraulic Pump,Submersible,Water Injection,Gas Injection,Shut-in,or Other ( ain); Item 28:Provide a fisting of intervals cored and the corresponding formations,and a brief description in this box. Submit detailed description and analytical laboratory information required by 20 MC 25,071 Item 30:Provide a listing of intervals tested and the corresponding formation,and a brief summary in this box. Submit detailed test and analytical laboratory information required by 20 MC 25.071, CeC)P\?r Form 10-407 Revised 12/2009 • • S 29 S 28 -4 1 CITY OF KENAI SEC 28 1/4 S 32 S 33 -1 1 SECTION LINE NOT TO SCALE SEC 33 4* ' I 1 NORTH - • II1 • I ' I1 I I• ll w U U CI I� I O O. "J J I- Z O O O z CITY OF KENAI >-O I Z IW co I 120 1� UNSUBDIVIDED p w z `, I I PORTION OF m Z O w SEC 33T6NR11W W y �I8IIl,._� S w0 24'WIDE ACCESS ROAD r J I I U QUO ' If, I OO) CIS I I BUCCANEER IKENAI LOOP PAD STAGING AREA \• 1064' 4 ® DRILLING PAD 1573' \\ FWL d ELEV.92.5' ¢ 1" II� I ul ° o,`\ 2� 'Qi0\ Ii°I : w w 0F� I ICII J _ Z 4- I�I KENAI LOOP NO.1 WELL IL CITY OF KENAI 1 QI I AS-BUILT SURFACE LOCATION a) TRACT A-1-A I I IQ NAD27 ASP ZONE 4 v KN-0970051 I 'g1 GRID N:2402268.61 M SEC 33 T6N R11 W I GRID E:279544.71 LATITUDE:60°34'11.498"N 1.BASIS OF HORIZONTAL AND VERTICAL CONTROL WAS NAVD88 I LONGITUDE:151°13'31.681"W ELEV.92.5' DETERMINED BY AN NGS OPUS SOLUTION FROM CORS BASE I I 1064'FWL STATIONS"KEN1 PID AF9548","TSEA PID AI0952"AND"ZAN1 PID I 1888'FNL DE9153" OBSERVED AUGUST 17,2007 FOR MCI CONTROL STATION I SECTION 33 TO6N R11 W SM AK KERR:ALASKA STATE PLANE NAD 83 ZONE 4 EPOCH 2003 DATUM I I N:2367475.381 1 ���������1 1� E: 1409643.183 I P(�.OF A�gstl� ELEVATION: 133.963 GEOID 06 NAVD88 DATUM 1, f �I COORDINATES WERE CONVERTED FROM NAD83 TO NAD27 '44a1%� 9*/� UTILIZING CORPSON VERSION 6.0.1. I �� 2)SECTION LNE OFFSETS DETERMINED FROM DIRECT SURVEY I "" TIES TO THE TO EXISTING BLM CORNERS RECOVERED AND NOT / STAN A. McLANE 0'' 4637-S THE PROTRACTED SECTION CORNER VALUES. I I - '' .�``� SCALE I I 200 400 I I I FEET I I- S 32 j S 33 O&G LEASE BNDRY T6N I 1/4 S 331 ► � —►r•S 5 S 4 SECTION LINE NOT TO SCALE T5N S 4 PROJECT REVISION: 0 BUCCANEER ALASKA, LLC DATE: 04/04/2011 2500 TANGLEWILDE AVE., SUITE 340 KENAI LOOP NO. 1 WELL AS-BUILT DRAWN BY: MSM HOUSTON, TX 77063 SURFACE LOCATION DIAGRAM NAD 27 SCALE: 1"=200' PROJECT NO. 103082 BOOK NO. - ENGINEERING/MAPPING/SURVEYING/TESTING Consulting Inc P.O.BOX 468 SOLDOTNA,AK.99669 LOCATION SEC. 33 T6N RI1W VOICE: SHEET CE:(907)283-42/6 FAX:(907)283-3265 D EMAIL:SAMCLANE@MCLANECG.COM SEWARD MERIDIAN,ALASKA 1 OF 1 AM-D ? 7 • • S 29 S 28 I CITY OF KENAI SEC 28 1/4 S32 S33 .Ti " SECTION LINE NOT TO SCALE SEC 33 II ► _\ I I II NORTH • 111 I i1I I Li III QI of �I IW I o • OO O. "' Jo . J I— I uJ z =OI IO z CITY OF KENAI }O z 00 = I LL UNSUBDIVIDED cc ow ' z cn 11 r m Eo PORTION OF z z O w SEC 33 T6N R11W w -4" I I u)• J Flo � l ,_I WZ I Jo . 24'WIDE ACCESS ROAD P , i P6 w • M iI ` O1n CO IBUCCANEER \ • 1 I KENAI LOOP PAD STAGING AREA \ I N I 1 1 1064' DRILLING PAD 1573' y FWL ye ELEV.92.5' Q �o\ I 1 a OIa o ,�0 GF\ p a 0 1� w • 1�1 I I w_ I I z1 o- I� I KENAI LOOP NO.1 WELL CITY OF KENAI I I. II AS-BUILT SURFACE LOCATION ai TRACT A-1-A NAD83 ASP ZONE 4 KN-0970051 v 1 I I1GRID N:2402030.97 M SEC 33 T6N R11W I GRID E:1419565.03 I LATITUDE:60°34'09.446"N 1.BASIS OF HORIZONTAL AND VERTICAL CONTROL WAS I I I LONGITUDE:151°13'39.709"W DETERMINED BY AN NGS OPUS SOLUTION FROM CORS BASE ELEV.92.5'NAVD88 STATIONS"KEN1 PID AF9548","TSEA PID A10952"AND"ZAN1 PID I I i 1064'FWL 1888'FNL DE9153" OBSERVED AUGUST 17,2007 FOR MCI CONTROL STATION SECTION 33 TO6N R11 W SM AK KERR:ALASKA STATE PLANE NAD 83 ZONE 4 EPOCH 2003 DATUM I N:2367475.381 I ``�������1�� E: 1409643.183 I 1 P,c,OF A.L4 111� ELEVATION:133.963 GEOID 06 NAVD88 DATUM I • - I ,1� !} Iti 9*,i 2)SECTION LNE OFFSETS DETERMINED FROM DIRECT SURVEY �J�� TIES TO THE TO EXISTING BLM CORNERS RECOVERED AND NOT . . ...... THE PROTRACTED SECTION CORNER VALUES. I I Ir. STAN 4637-SLANE ==_ ► Ali • , 11txvoN% SCALE I 200 400 I I FEET I- I I S 3,l5 33 O&G LEASE BNDRY T6N 1/4 II S33a. S 5 g q SECTION LINE NOT TO SCALE � T5N S 4►j� PROJECT REVISION: 0 BUCCANEER ALASKA, LLC DATE: 04/0412011 2500 TANGLEWILDE AVE., SUITE 340 KENAI LOOP NO. 1 WELL AS-BUILT DRAWN BY: MSM HOUSTON, TX 77063 SURFACE LOCATION DIAGRAM NAD 83 SCALE: 1"=200' PROJECT NO. 103082 BOOK NO. - ENGINEERING/MAPPING/SURVEYING/TESTING /,Consulting Inc P.O.BOX 468 SOLDOTNA,AK.99669 LOCATION War VOICE:(907)283-4218 FAX:(907)283-3265 SEC. 33 T6N R11 W EMAIL:SAMCLANE©MCLANECG.COM SEWARD MERIDIAN,ALASKA 1 OF 1 AJf DS3 Actual Wellpath Geographic Report Report Generated 5/11/2011 at 6:34:53 AM Projection System NAD27/TM Alaska SP,Zone 4(5004),US feet Operator Buccaneer Energy,Inc. North Reference True Area Cook Inlet,Alaska(Kenai Peninsula) Scale 0.999955 Field Kenai Loop#1 Horizontal Reference Point Slot Facility Kenai Loop#1 Vertical Reference Point Glacier#1(RKB) Slot Kenai Loop#1 MD Reference Point Glacier#1(RKB) Well Kenai Loop#1 Field Vertical Reference Mean Sea Level Wellbore Kenai Loop#1 Glacier#1(RKB)to Mean Sea level 113.30 ft Wellpath NaviTrak MWD<263-10680'> Glacier#1(RKB)to Mean Sea Level 113.30 ft Wellbore Last Revised 04/14/2011 Mean Sea level to Mud Line(Facility) 0.00 ft Sidetrack from (none) Section Origin X E 0.00 ft User Jonethoh Section Origin Y N 0.00 ft Calculation method Minimum curvature Section Azimuth 151.00° Local North Local East Grid East Grid North Latitude Longitude [ft] [ft] [US ft] [US ft] Slot Location 0.00 0.00 279518.13 2402268.60 60°34'11.493"N 151°13'32.213"W Facility Reference Pt 279518.13 2402268.60 60°34'11.493"N 151°13'32.213"W Field Reference Pt 279518.14 2402268.55 60°3411.493"N 151°13'32.213"W TVD from MD Inclination Azimuth TVD Fld Ref North East Grid East Grid North Latitude Longitude DLS Toolface Build Rate Turn Rate Vert Sect Comments [ft] (1 [1 [ft] [ft] [ft] [ft] [US ft] [US ft] [1100ft] [°] [°I100ft] [°/100ft] [ft] 0.00 0.00 235.23 0.00 -113.30 0.00 0.00 279518.13 2402268.60 60°34'11.493"N 151°13'32.213"W 0.00 -124.77 0.00 0.00 0.00 263.00 0.16 235.23 263.00 149.70 -0.21 -0.30 279517.82 2402268.40 60°34'11.491"N_151°13'32.219"W 0.06 44.40 0.06 0.00 0.04 388.00 0.25 253.03 388.00 274.70 -0.39 -0.71 279517.41 2402268.23 60°34'11.489"N 151°13'32.227"W 0.09 -53.97 0.07 14.24 0.00 443.00 0.33 236.84 443.00 329.70 -0.51 _ -0.95 279517.16 _ 2402268.11 60°34'11.488"N 151°13'32.232"W 0.21 -87.74 0.15 -29.44 -0.02 806.00 0.43 199.17 805.99 692.69 -2.37 -2.28 279515.81 2402266.27 60°34'11.470"N 151°13'32.259"W 0.07 60.14 0.03 -10.38 0.97 995.00 0.60 220.88 994.98 881.68 -3.79 -3.16 279514.90 2402264.87 60°34'11.456"N 151°1 332.276'W 0.14 -21.65 0.09 11.49 1.78 1186.00 1.12 210.63 1185.96 1072.66 -6.15 -4.76 279513.25 2402262.54 60°34'11.432"N 151°1332.308W 0.28 23.81 0.27 -5.37 3.07 1439.00 1.26 213.41 1438.91 1325.61 -10.60 -7.55 279510.38 2402258.14 60°34'11.389"N 151°13'32.364"W 0.06 0.42 0.06 1.10 5.61 1884.00 2.31 213.60 1883.68 1770.38 -22.15 -15.21 279502.51 2402246.74 60°3411.275"N 151°1332.517"W 0.24 75.68 0.24 0.04 12.00 2135.00 2.43 222.20 2134.47 2021.17 -30.31 -21.58 279495.98 2402238.70 _60°34'11.195"N 151°13'32.645"W 0.15 -33.93 0.05 3.43 16.05 2388.00 3.01 215.05 2387.18 2273.88 -39.72 -29.00 279488.39 2402229.43 60°3411.102"N 151°13'32.793"W 0.27 8.44 0.23 -2.83 20.68 2578.00 3.51 216.26 2576.88 2463.58 -48.49 -35.31 279481.92 2402220.78 60°34'11.015"N 151°13'32.919"W 0.27 -63.25 0.26 0.64 25.30 2705.00 3.71 210.66 2703.63 2590.33 -55.16 -39.70 279477.41 2402214.19 60°34'10.950"N 151°13'33.007"W 0.32 33.89 0.16 -4.41 29.00 2833.00 3.95 212.97 2831.34 2718.04 -62.42 -44.21 279472.76 2402207.01_ 60°3410.878"N 151°1333.098"W 0.22 7.08 0.19 1.80 33.17 3022.00 4.50 213.84 3019.83 2906.53 -74.04 -51.88 279464.87 2402195.54 60°34'10.764"N 151 1133.251'W 0.29 147.82 0.29 0.46 39.61 3157.00 3.61 223.26 3154.49 3041.19 -81.54 -57.75 279458.87 2402188.16 60°34'10.690"N 151 1313.368"W 0.82 130.66 -0.66 6.98 43.32 3220.00 3.34 229.00 3217.37 3104.07 -84.19 -60.49 279456.08 _ 2402185.56 60°34'10.664"N 151 1333.423"W 0.70 -178.86 -0.43 9.11 44.31 _ 3664.00 0.48 222.21 3661.08 3547.78 -94.05 -71.50 279444.89 2402175.90_ 60°3410.567"N 151°13'33.644"W 0.65 -118.82 -0.64 -1.53 47.60 3980.00 1.23 123.38 3977.05 3863.75 -96.90 -69.56 279446.78 2402173.02 60°34'10.539"N 151°13'33.605"W 0.44 -110.99 0.24 -31.28 51.03 4043.00 1.15 105.43 4040.04 3926.74 -97.44 -68.39 -- 279447.94 2402172.46 -60°3410.533"N 151°1333.581"W 0.60 156.03 -0.13 -28.49 52.07 4106.00 011 122.61 410103 3989.73 -97.82 -67.45 279448.87 2402172.06 60°3410.530"N 151°1133.563"W 0.82 -110.64 -0.70 2727 52.86 4359.00 0.70 83.63 4356.01 4242.71 -98.49 -64.59 279451.71 2402171.34 60°3410.523"N 1519133.505'W 0.19 -172.09 0.00 -15.41 54.83 4423.00 0.44 78.89 4420.01 4306.71 -98.40 -63.96 279452.34 2402171.42 60°3410.524"N 1519323.493W 0.41 59.68 -0.41 -7.41 55.06 4549.00 0.59 98.50 4546.00 4432.70 -98.40 -62.85 279453.46 2402171.39 60°34'10.524"N 1519333.470'W 0.18 -115.96 0.12 15.56 55.60 4993.00 1.02 1187 4989.97 4876.67 -94.90 -59.64 279456.73 2402174.83 60°3410.558"N 151°1333.406"W 025 146.49 110 -19.06 54.10 5184.00 0.61 47.76 5180.95 5067.65 -92.57 -58.48 279457.94 2402177.14 60°34'10.581"N 1519333.383"W 0.32 169.40 -0.21 17.74 52.62 5437.00 022 57.69 543195 5320.65 -9129 -5628 279459.55 240217829 60°3410.594"N 151°1313.351'W 0.12 -63.46 -0.11 3.92 5227 5692.00 0.49 29.98 5688.94 5575.64 -89.96 -55.74 279460.73 2402179.70 60°3410.607"N 151°1333.328W 110 -16163 0.07 -1027 5126 4 5880.00 028 13.87 5876.93 5763.63 -88.82 -55.22 279461.26 2402180.83 60°34'10.618"N 151°13'33.318"W 0.12 169.95 -0.11 -8.57 50.91 632320 0.15 164.80 631923 620623 -88.33 -5421 279461.68 240218131 60°34'11623"N 151°13'33.310"W 029 14327 -103 3427 5168 6512.00 0.10 190.69 6508.93 6395.63 -88.73 -54.78 279461.71 2402180.91 60°34'10.619"N 151°13'33.309'W 0.04 4.93 -0.03 13.70 51.05 676720 0.77 194.98 676322 665022 -90.60 _ -55.26 279461.19 240217925 60°3410.601"N 151°1333.319"W 026 -13529 026 128 5245 7210.00 0.55 136.09 7206.90 7093.60 -95.01 -54.56 279461.81 240217423 60°34'10.557"N 151°1133.305"W 0.15 -30.51 -025 -1329 5665 7462.00 0.82 125.49 7458.88 7345.58 -9.6.93 -52.25 , 279464.08 2402172.67 60°34'10.538"N 151°13'33.258"W 0.12 163.09 0.11 -4.21 59.45 7526.00 0.73 12725 752227 740927 -97A4 -51.55 279464.77 2402172.14 60°34'10.533"N 151°1333.241W 115 10629 -0.14 328 60.24 765320 0.77 168.43 764926 7536.56 -9877 -50.74 279465.55 240217020 60°3410.520"N 151°1323.228"W 0.41 -63.44 0.03 32.11 61.79 7780.00 126 145.51 777625 766335 -100.58 -4921 279466.36 2402168.98 60°34'10.503"N 1151°1323.212"W 026 1923 023 -1825 6178 793020 125 151.96 7926.81 7813.51 -103.51 -48.17 279468.04 2402166.01 60°3410.474"N 1151°1323.177"W 024 -60.88 0.33 4.30 67.19 798220 122 139.15 7978.79 7865.49 -104.76 -47.30 27946829 2402164.75 60°34'10.461"N 1151°1323.159"W 029 1 49.84 0.52 24.63 68.70 8136.00 2.12 14729 8132.70 8019.40 -10922 -44.19 ' 27947122 240216043 60°34'10.419 N 151°13'33.097"W 028 -6.05 0.19 5.74 73.93 8389.00 3.70 145.40 8385.36 8272.06 -119.71 -37.07 279478.83 2402149 61 1 60°34'10.314"N±151°13'32 .955".W 023 24.82 0.62 1 -1.02 86.73 8452.00 4.30 141.75 844821 833421 -123.24 -34.45 279481.38 2402146 03 1 60°34'10.279'N 151°13'32.902"W 123 94.09 0.95 -5 79 91.09 858120 4.33 129.75 857625 8463.55 -130.15 -27.72 279487.99 ' 2402139.00 60°34'10.211"N 151°13'32.768"W 0.70 -166.38 0.02 -9.30 100.40 8643.00 348 126.33 8638.70 8525.40 -132.76 -24.40 279491.26 2402136.32 60°34'10.186"N 151 13'32.701"W 1.42 -90.02 -1.37 -5.52 104.29 8706.00 3.52 117.65 8701.58 8588.28 -134.79 -21.15 1 279494.47 2402134.23 60°34'10.166"N ,151°13'32.636"W 0.84 -147.03 0.06 -13.78 107.64 8770.00 3.02 111.25 8765.48 8652 18 -136.31 -17.84 279497.75 2402132.65 60°34'10.151"N 151°13'32.570"W.. 0.97 -17.89 -0.78 -10.00 110.58 8833.00 3.81 107.45 1 8828.37 , 8715.07 -137.54 -14.29 279501.27 2402131.35 60°34'10.139"N '.151°13'32.499"W 1.30 18.72 T 1.25 -6.03 113.37 Page 1 of 2 Y - o 5 W 0 2 id v)��o rn aD v>ol(y coin v',ry rn - (OOM(p 1AC1fj O1NO)M1�(p rte-' NN(�i�YLLD 1ON(D(01�1�W - d d mNtNO,M1O�(�0.70(20V� V C,p N MY1�V - (1 00.41n OD0 .. - 3 fO�OO.3 cN Q) OD 11 . 1 1 (2O V 0 0 M 0 0 M 0 -W D( 0700000000 —0 GGN�–O 0-00 - - ONY (0O tMO tOO QOpp7�OOD pMp .. p0� - - •7 l`')NOD 1�t0 U')<(7N OOf •• 10 V MN§ M M M N .O (")MMMM(")C)C)l'7 C�P)C)C)C) M(')))MN C 0 - M'I O . 0 10 1()1A In 1L]N 7'7 N u N'N W)U) In N LL) 0 1f) z z z Z Z ZZ ZZ Z'Z ZZ z?Z Z z Z Z U)O O)pNUOS0a)iOCp)Qap l�(0 V(0(0 U)0D C7 UO�O)) 'dO F•^-0 OO 0)),0)ON).O)W(0000D VIA 1CO,fO COO8U)U) _ N C�Cpl Mpgfp�lphpMMppgf'p1l" gXpAf+p/pAtp�pXKp1A _ R (CO(O(COf OfOfO<O)0(0((0((0)COfOfOfOfO888 • - ox o ao(uoi(ov�aD(ogS0o'00000`00 - - Z N N N� 0 0 U N N N N N N N N N.,N N N N N N N N N N N a0(0�0O) 01O OD 1ONa f0 T - N„ MOD aO l�maD(ON(t1ppO0(pp(pp) fOp�p lh (ppfpO((pptpn LL1� f(7M��( 1O 1O 1O In()(O�(O O)O) - aN (n auDV)1O rnrnrnmrnrnrnrnrnmmrnrna,am N N N N N N N N N N N N N N N N N N^ (^(2(O;V(O(O0��41p�1g(N(pp V Igoro(N(pp. LL) CC?,S gin 4N(O(COrODODON) - ""!:="1111 1�8OOpp (DN NOD OD I�O)T O d Q7�N W(OY OIh NNhO)<00 IIIIIIIIIIIIIIIIII o vw O gN OO ig(p8(pCOp}p�Nl LLu 030308m Of,TOi. aONE8N W 8 'V r OD 'O Ni�'1n O'C'n O 0,OD 1() pNpOaa {C{p o)IT V NO W 10ONNyr pD '--288 rnrnrn�)rno�)rnmrnrn000 - - - 111131111111111 E`�-' O - � n1IIllELIIIIIIIIII 111�y 1pOOp O aODN�`ONf'O7 T 1O�)0O)1rOO i OOrf i OVNOp f OpO�)�8j 10�N0 1O00DpQC0�p M0 p0�p 0 QpOtCO D Q $OC'7$ $!i$$$$$$$$$L10.$$81$$$$ pR 11 (N I • Buccaneer Alaska Operations, LLC Kenai Loop #1 Drilling Permit# 211 043 OPERATIONS SUMMARY Finish rig audit. Test diverter& related w/AOGCC. Stage BHA. Received permit from 4/15/2011 AOGCC. MU BHA. Wash conductor f/90' to 138'. Spud well @ 2100 hrs 4/14/2011. Drill f/ 138' to 438'. 4/16/2011 Drill 13 1/2" hole f/438'to 2055'. 4/17/2011 Drill 13 1/2" hole f/2055' to 3075' .CBU. Pump sweep. Prepare to short trip. 4/18/2011 Perform short trip to HWDP. TIH. Circ clean. POOH. RU E-line and log. RD E-line. RU casing tools. Start running 10 3/4"casing. Landed L80 45.5 BTC csg @ 3057'. RI w/stab-in system. Test lines. Cement w/564bb1s 4/19/2011 12.0 ppg cement. Cement to surface @520bbls. Floats held. POOH. ND diverter. Clean pits. Cont ND and cleaning while WOC. Rough cut 10 3/<". Remove starter head. Prep&cut 16" 4/20/2011 g g p and performed final cut on 10 3/4" Install wellhead. Test to 1800 psi for 10 min. Begin Nu BOPe. 4/21/2011 Cont NU BOPe. RU test equipment and test BOPe to 250/4000 psi, hydril to 250/2500psi (witness by AOGCC). Perform casing test to 2500 psi. RIH w/BHA and test. MWD failed Replaced. RIH to 2960' &tagged cmt. Drill cement and 4/22/2011 shoe track to 3057'. Ream rathole cmt to 3075'. Drill to 3097' Perform LOT to 15.0 ppg emw. Drill to 3352'. Pull to shoe. Perform OH LOT to 14.7 ppg emw. Drill to 3700'. 4/23/2011 Drill to 4490'. Perform short trip. Drill to 5100'. 4/24/2011 Drill to 6310'. 4/25/2011 Drill to 6581'. Short trip. Drill to 7135'. 4/26/2011 Drill to 8000'. 4/27/2011 Circ up samples. Short trip. Drill to 8050'. Circ up samples. POOH. RU to log. 4/28/2011 Run eline logs. Test BOPe. • • 4/29/2011 TIH to 7963'. Wash & ream to bottom of 8050'. Circ sweep. POOH. Run CBL on surface casing. RU to run 7 5/8" intermediate casing. 4/30/2011 Run casing to 8024' and land. RU BJ and cmt w/ 126.5 bbl lead © 13.5ppg and 52 bbls tail @ 15.8 ppg. Displaced with rig pumps. Bumped plug w/ 1000psi. Floats held. 5/1/2011 Set pack off and pressure test to 3800psi. LD 5" drillpipe. Change handling tools. PU 4" drillpipe while TIH. 5/2/2011 Cont PU 4" DP and stand back. RU and test BOPe. Annular to 250/2500 and remainder to 250/4000. Test 7 5/8"to 2500 psi. PU BHA and TIH. Drilling shoe track. 5/3/2011 Fin drill shoe track and cmt to 8050'. Drill 20' of new formation to 8070'. Circ clean. Perform FIT to 13.5 ppg emw. Drill to 8679'. 5/4/2011 Drill to 9222'. 5/5/2011 Drill to 9316'. Perform wiper trip. Drill to 9593'. Drill to 9720'. Start raising wt from 10.0 to 10.4 ppg. Circ BU and gas went to 2050 u and 5/6/2011 back down to 100u. Check for flow. Well flowing. Circ thru gas buster and build wt to 11.2. Drill to 9734'. 5/7/2011 Circ BU. Gas went up to 1260 then down to 30-40u. Drill to 9909'. Circ BU. Make 11 std wiper trip. Circ BU. Gas 214u. Drill to 10138'. Incr mw to 11.4 ppg. 5/8/2011 Control drill to 10531' (BGG 30-40u). (Call for permission to drill deeper-granted) 5/9/2011 Drill f/10531'-10560'. Circ up break. Drill to 10680' Circ clean. Perform short trip. Circ. 5/10/2011 C&C. Perform another short trip. Circ clean. POOH. Test BOPe. RU logging equipment. 5/11/2011 Fin RIH. Tagged @ 9421'. POOH. PU bit and BHA and TIH. Tag @ 9431'. Wash and ream. RIH. Circ clean. POOH to casing shoe for short trip. RIH. 5/12/2011 Tag bridge and work clean @ 10005'. Fin in hole. Circ clean. POOH. RU logging tools. RIH and log f/ 10676'. Stuck @ 9473'. Left caliper arm in hole. Check stack. 5/13/2011 RIH w/concave mill to TD tagging a few tite spots. Circ clean. POOH. RIH w/logs. Tag @ 9431'. Log out of hole. 5/14/2011 Fin log out of hole. RIH w/cleanout BHA. Reamed 9400' area. RIH. Tag @ 10678' (2' fill). POOH. RU EL. Stop @ 9516'. POOH and RD EL. 5/15/2011 MU clean out BHA and RIH. Tag @ 9887'. Ream thru. RIH to td &wash last 2'fill. Circ clean. POOH. RU to run 4 1/z' production liner. • • Fin RIH w/4 1/2" Inr. . lb while reciprocating Inr. Test lines . Mix& pump 40 bbls Seal 5/16/2011 Bond flush @ 12.5 ppg, 67 sx"G" (141.2 bbls @ 15.8 ppg, yld 1.18). Set hgr. Unsting. C&C. •: H. 5/17/2011 Fin LD 4"DP and BHA. PU 2 7/8" DP. PU BHA w/mill and scraper and TIH on Sundry 311- 172 5/18/2011 Fin in hole to 10565'. Attempt to circ w/no success. POOH to 7850'. Break circ. RIH to 10585' breaking circ every 5 stds. Circ clean. Displace w/9.6NaCI/Kill. Start cleaning pits. 5/19/2011 Fin cleaning pits, flush lines. Test csgs to 4000 psi. Filter brine, incr wt to 10.2ppg. POOH. 5/20/2011 Fin POOH. RU SLB and run neutron log. RU EXPRO and run GR/CBL on 4 1/" lnr and 7 5/8" csg. Begin testing BOPe. 5/21/2011 Fin testing BOPe. Clear floor and service rig. RU Expro eline and RIH w/JB and 3.75" gauge ring to 10560' ELM. Rcvrd some coal, 5/22/2011 etc. Run 6"tool in intm. PU TCP guns and pkr. RIH and set pkr @ 9666'. PU seal assy and DST string. Begin RIH. 5/23/2011 Cont RIH w/ DST string. Stab into packer&test. Pull out. PU test head and EXPRO eqpmt. Wait on daylight. Pressure test lines to 5k. Pressure test Surf control head and lubricator hook up to 5k. Displace brine w/ N2. Sting 5/24/2011 into pkr. RU EXPRO test line to chk manifold. Test to 200/5k psi. Bled back to 2600 psi for underbalance. Drop detonating bar. Pressure incr. Open well and unload 6 bbls fluid. Began well test. Flow well for 1.5 hrs. Shut in (SI) 1 hr for build up#1. Start flow period#2. 5/25/2011 Cont flow period#2. Shut in for build up#2. 5/26/2011 Cont build up#2. Begin 4-point flow test. SI for build up#3 monitoring pressure at choke and annulus. Note: Submitted email request w/back up for verbal to proceed with completion. 5/27/2011 Cont same. Note: Received verbal approval to complete well as described in email and included in Sundry 311-188. 5/28/2011 Killed well. Set bridge plug @ 9695'. 5/29/2011 Set 2nd bridge plug for back up @ 9694'. Positively test to 1000 psi for 30 min. Unsting from pkr. Monitor well w/±300 psi negative differential for 30 min. POOH w/DST string. • POOH w/ DST string. PU tubing & RIH w/ Dressed Seal Assy. PU SSSV and inject 5/30/2011 mandrel. RIH. Tag up @ 9666 space out. PU hanger, test lines, land out lock down hanger and test seals on hanger and seal assembly. Test hanger 5000 psi ressu e up annulus 500 psi 5 min test good. Flush and clean out all 5/31/2011 lines and BOP stack. D BO s. RU short tree, control lines, test void to 5000 psi 10 min good test. Install BP; . gin RD of rig. (Continue to RD rig). CO flange on tree, RU lubricator. RIH W/ X plug -set at 535', 6/1/2011 POOH. RIH set prong. RD wireline. NU flange and cap on tree. Test flange to valve T/5000 psi F/10 min good test. Install BPV. 6/2/2011 Release rig from Buccaneer Alaska Kenai Loop# 1 @ 1200 hrs on 6-1-11. 6/3/2011 Load out rig. 6/4/2011 Finish rig move. 6/5/2011 Begin secure location while wait on eqpmt to finish Sundry 311-188. 6/6-6/12/2011 Cont securing location while wait on eqpmt. 6/13-6/19/2011 Wait on equipment 6/20/2011 Wait on equipment 6/21/2011 Tested tree to 5000psi. Move in Expro test equipment 6/22/2011 RU wireline. Pull PX plug. RU lubricator and eline. Test to 5k. Open SCSSV. Log w/GR and collar locator. RD and secure well for night. 6/23/2011 Wait on equipment. 6/24/2011 RU wireline and lubricator. Test to 5k. Run 1.85 gauge, tag XN nipple. RIH with 2.20 gauge. Tag x-over. RD and secure well for night. 6/25-6/29/2011 Wait on equipment 6/27/2011 Wait on equipment. RU Schlumberger and tested lubricator to 5k. GIH. Cut tubing 2' below x-nipple. RD 6/28/2011 SLB. RU slickline &test lub to 5k. Drop soap sticks. Swabbed. Well flowed to test eqpmt. SI well. Closed SCSSV. Test same. Set PXN plug and prong in profile. Bled off pressure. RD slickline. SDFN 6/29/2011 Set Vetco BPV. RD all test eqpmt. Clear location. Secure tree. WELL SECURED. r 6/30/2011 Cleaning &Securing location. Waiting on eqpmt and pipeline 7/1-7/23/2011 Continue minor Icn work while waiting on eqpmt and pipeline 0 CMPLTN WELLBORE (6) Stephen F.(Steve) nn 7/2He8/201igan 1 Buccaneer Alaska Opns LLC 0 Kenai Loop # 7 Block/Sec 33 6N 11W Wildcat 0 Kenai Peninsula 0 Alaska Ser#.:211 043 ,, PP MW FO; Comments/ CSG VGTCO (ppg or pp j'ALUA'rION MD/TVD 5k tree -. UI t.,...1. ., ,,ASING F ;„.7. USDW:' Est Rkb 15' Air Gap 0'i Wtr.Dpth 6 9.8 123'pen 138' • 0.5#N80HC Welded Drive Sz>u 16 " ROP/Gas log Cond/Dsive to TD. ' Retrvable tbg plug @ 1100' L : Chemical jnj Mandrel ±500' /4"SS 0.049 wall chem inj line 2 7/8" 6.5 L80 2.347"ID API EUE 8rd M :- = SCSSV±565' • L EXPRO 04-29-2011 8.6 0.'1 16.0 Trlple combo 30 : 45.5#1,80 BTC 13 1/2" 055' 10 3/4" Pump 42 bbls Mud Clean II with red dye. Pump 3 bbls A- LOT#2 @ 3352' MD 14.7 ppg emw water. Test lines to 2k psi Cmt to surf @ 520 bbls. Poctential Iqj zone Pump 564 bbls 12 ppg cmt. Pump 5 bbls water to clear lines. Switch to rig pumps to displace w/45 bbls 8.8 pp: mud. Floats heldUnsting. CIP @ 21:000 IO( +.000,,,,4 LOT#1 15.0 .pg emw 1 hrs-R/u BJ for Cmt Job PJSM for Cmt Job-Tst Surf Lines 4000 Psi- OK 0.25 hrs-Repair BJ H2O Line(cement plug in line) 1 hrs-Mx& 102 ppg NaCL/KCL Pump 30 Bbl 1OPPG Spacer&Mx 3 Bbls Cmt-(Packing over/heating- S/dn&Observe) 2.25 hrs-Mx&Pump 126.5 Bbl Lead to Slurry wt 13.5 PPG-Follow w/52 Bbls Tail to Slurry Wt 15.8 PPG Shut/dn-Drop Plug ;.:::, &Pump 5 Bbls H2O-S/dn&Displace w/Rig Pump-PI • c• •-• 0 Calculated Displacement-Press/up 1000 Psi(1900)&hold 5 Min- ; Bleed/off-Floats HeIdCIP=06:05 HrsNote: Btm Shoe @ 8024'&Float Collar @ 7938' EXPRO 05 19 2011 ii FIT#3 13.5 ppg emw 8.6 9.2 13.5 Quad Combo plus 8024' ; 2� 2' 29.7#L80 BTC top/Vam btn 9 7/8" L.2 7 5/8" 8021' ¢.:>' <:»(¢� ..... 2¢ ,_.> Qz. [T2 j)B T 5-1/2" 17# x 7-5/8"29.7-39#; Y 5 t. :. 2¢: , '�` �'- V102 80 KSI Hyd Flex Lock Liner hanger w/ 20.?::: • I 1¢2 ZXP LT Packer 25...,..'. : 2 ITOL 7892"MD,7888'ND 1.875"XN nipple @ 9687.14' Cut string @±9689' 20:: : 'IF Ai (¢2 2 ,:'`:: r;[�¢(2 Baker Model D Pkr @ 9666'(9659'TVD) 20."ii ::[�rl2 .::'< ': Top Perforation (RDX) 9705 " ==•:::::: ::::,=== Bottom Perforation (6 SPF) 9724.85' 20.:i::: ::::[02 (9698' 9717' TVD) 2 0i:i'ii iiii[02 2 2 Top Perforation (RDX) 10008.15 • Bottom Perforation (6 SPF) 10049.17 NOTE: Test guns DID NOT release. °¢, :: (10000' 10040' TVD) 2 Cut string @±9689'. String fell. ¢. `?:[¢ [02 Estimated top of fish 10240'MD 2 ,) (�l2 2:::::!•:::.1 .[7�2 2¢{{ :[¢2 PBTD 10565'DPM T.:: :::: i:ii:::"[T2 Drill -0,, ;:[¢2 CBL EXPRO 05 19 2011 8.6 11.4 165 Quad Combo plus 10680' ## 2,{ : :[¢'12.6#L80 TCII 6 3/4" 10667' Y 4 1/2" Test to 4500 psi. Mix and pump 40 bbls sealbond sweep at 12.5ppg 672 sx 141.2 slurry Class G+ 1.2%BA-56,3%KCL, .5%%EC-1, .4% CD-32,.2%A-2, .2%R-3, .05%Static Free, 1 ghs FP-6L.Yld 1.18 cu ft/sk, 9.82'marker jt @ 8324' 15.8 ppg 4.951 gl H2O sk,3.32 pumping time.79.216 bbls water to mix. Landing collar 10591',Float collar l@ 10633' Displace w 11.4 ppg mw. Tagged @ 10565'DPM Csg shoe 10676' • STATE OF ALASKA • . ALASKA IL AND GAS CONSERVATION COMMISSION REPORT OF SUNDRY WELL OPERATIONS 1.Operations Abandon U Repair Well (J Plug Perforations Li Stimulate U Other U Performed: Alter Casing ❑ Pull Tubing❑ Perforate New Pool ❑ Waiver❑ Time Extension❑ Change Approved Program ❑ Operat.Shutdown K2 / Perforate 0 Re-enter Suspended Well❑ 2.Operator 4.Well Class Before Work: 5.Permit to Drill Number: Name: Buccaneer Alaska Operations,LLC Development ❑ Exploratory El - 211 043 3.Address: 952 Echo Lane,Suite 420,Houston,Texas Stratigraphic❑ Service ❑ 6.API Number: 77024 . 50--133205950000 7.Property Designation(Lease Number): ,, 8.Well Name and Number: MHT 9300082 Kenai Loop#1 9.Field/Pool(s): K n I Penni la xploration `I t.A T.c, n e . Gks r �� '� 11 10.Present Well Condition Sumn'?ary: Total Depth measured 10680 feet Plugs measured feet true vertical 10667 feet Junk measured feet Effective Depth measured 10585 feet Packer measured 9666 feet true vertical 10573 feet true vertical 9659 feet Casing Length Size MD TVD Burst Collapse Structural 138 16 138 138 NA NA Conductor Surface 3057 10.75 3057 3055 3580 2090 Intermediate 8024 7.625 8024 8021 5210 2480 Production Liner 2906 4.5 10680 10667 8430 7500 9705-25' Perforation depth Measured depth 10008-49' feet 10008-49' True Vertical depth 10000-40' feet Tubing(size,grade,measured and true vertical depth) 2.875 6.5ppf L-80 9666'MD 9659'TVD SCSSV Baker TES 535'MD 535'TVD Packers and SSSV(type,measured and true vertical depth) Packer Baker Model D permanent 9666'MD' 9659'TVD �� 11.Stimulation or cement squeeze summary: NA "" t Intervals treated(measured): k is at 4 .`k `' Treatment descriptions including volumes used and final pressure: a ip. . F i' ' q*§ fitly 12 9VilliiiSSIOn 12. NA Representative Daily Average Production ail lr#} ctib&r Mta Oil-Bbl Gas-Mcf Water-Bbl Casing Pressure Tubing Pressure Prior to well operation: Subsequent to operation: 13.Attachments: 14.Well Class after work: Copies of Logs and Surveys Run Exploratory 0 4 Development Service ❑ Stratigraphic ❑ Daily Report of Well Operations attached 15.Well Status after work: Oil ❑ Gas WDSPL❑ GSTOR ❑ WINJ ❑ WAG ❑ GINJ Li sus ❑ SPLUG❑ 16. I hereby certify that the foregoing is true and correct to the best of my knowledge. Sun O�ry Number or if C.O.Exempt: 311-172;with 311,188 Contact Stephen Hennigan 337 849 5345 Printed Name '. Rike Title EVP Operations Buccaneer Alaska, LLC •Signature Arralr--a . Phone 713 468 1678 Date / Form 10-404 Revised 10/2010 RBDMS A(�i Submit Original Only • • • Buccaneer Alaska Operations, LLC Kenai Loop #1 Drilling Permit# 211 043 OPERATIONS SUMMARY Finish rig audit. Test diverter& related w/AOGCC. Stage BHA. Received permit from AOGCC. 4/15/2011 MU BHA. Wash conductor f/90'to 138'. Spud well @ 2100 hrs 4/14/2011. Drill f/ 138'to 438'. 4/16/2011 Drill 13 1/2" hole f/438'to 2055'. 4/17/2011 Drill 13 1/2" hole f/2055'to 3075' .CBU. Pump sweep. Prepare to short trip. Perform short trip to HWDP. TIH. Circ clean. POOH. RU E-line and log. RD E-line. RU casing 4/18/2011 tools. Start running 10 3/4" casing. 4/19/2011 Landed L80 45.5 BTC csg @ 3057'. RI w/stab-in system. Test lines. Cement w/564bb1s 12.0 ppg cement. Cement to surface @520bbIs. Floats held. POOH. ND diverter. Clean pits. 4/20/2011 Cont ND and cleaning while WOC. Rough cut 10 3/4". Remove starter head. Prep &cut 16" and performed final cut on 10%" Install wellhead. Test to 1800 psi for 10 min. Begin Nu BOPe. Cont NU BOPe. RU test equipment and test BOPe to 250/4000 psi, hydril to 250/2500psi 4/21/2011 (witness by AOGCC). Perform casing test to 2500 psi. RIH w/ BHA and test. MWD failed Replaced. RIH to 2960' &tagged cmt. Drill cement and shoe 4/22/2011 track to 3057'. Ream rathole cmt to 3075'. Drill to 3097' Perform LOT to 15.0 ppg emw. Drill to 3352'. Pull to shoe. Perform OH LOT to 14.7 ppg emw. Drill to 3700'. 4/23/2011 Drill to 4490'. Perform short trip. Drill to 5100'. 4/24/2011 Drill to 6310'. 4/25/2011 Drill to 6581'. Short trip. Drill to 7135'. 4/26/2011 Drill to 8000'. 4/27/2011 Circ up samples. Short trip. Drill to 8050'. Circ up samples. POOH. RU to log. 4/28/2011 Run eline logs. Test BOPe. 4/29/2011 TIH to 7963'. Wash & ream to bottom of 8050'. Circ sweep. POOH. Run CBL on surface casing. RU to run 7 5/8" intermediate casing. • 4/30/2011 Run casing to 8024' and land. RU BJ and cmt w/ 126.5 bbl lead @ 13.5ppg and 52 bbls tail @ 15.8 ppg. Displaced with rig pumps. Bumped plug w/ 1000psi. Floats held. 5/1/2011 Set pack off and pressure test to 3800psi. LD 5" drillpipe. Change handling tools. PU 4" drillpipe while TIH. 5/2/2011 Cont PU 4" DP and stand back. RU and test BOPe. Annular to 250/2500 and remainder to 250/4000. Test 7 5/8" to 2500 psi. PU BHA and TIH. Drilling shoe track. 5/3/2011 Fin drill shoe track and cmt to 8050'. Drill 20' of new formation to 8070'. Circ clean. Perform FIT to 13.5 ppg emw. Drill to 8679'. 5/4/2011 Drill to 9222'. 5/5/2011 Drill to 9316'. Perform wiper trip. Drill to 9593'. Drill to 9720'. Start raising wt from 10.0 to 10.4 ppg. Circ BU and gas went to 2050 u and back 5/6/2011 down to 100u. Check for flow. Well flowing. Circ thru gas buster and build wt to 11.2. Drill to 9734'. 5/7/2011 Circ BU. Gas went up to 1260 then down to 30-40u. Drill to 9909'. Circ BU. Make 11 std wiper trip. Circ BU. Gas 214u. Drill to 10138'. Incr mw to 11.4 ppg. 5/8/2011 Control drill to 10531' (BGG 30-40u). (Call for permission to drill deeper-granted) 5/9/2011 Drill f/10531'-10560'. Circ up break. Drill to 10680' Circ clean. Perform short trip. Circ. 5/10/2011 C&C. Perform another short trip. Circ clean. POOH. Test BOPe. RU logging equipment. 5/11/2011 Fin RIH. Tagged @ 9421'. POOH. PU bit and BHA and TIH. Tag @ 9431'. Wash and ream. RIH. Circ clean. POOH to casing shoe for short trip. RIH. 5/12/2011 Tag bridge and work clean @ 10005'. Fin in hole. Circ clean. POOH. RU logging tools. RIH and log f/ 10676'. Stuck @ 9473'. Left caliper arm in hole. Check stack. RIH w/concave mill to TD tagging a few tite spots. Circ clean. POOH. RIH w/ logs. Tag @ 5/13/2011 9431'. Log out of hole. 5/14/2011 Fin log out of hole. RIH w/cleanout BHA. Reamed 9400' area. RIH. Tag @ 10678' (2' fill). POOH. RU EL. Stop @ 9516'. POOH and RD EL. 5/15/2011 MU clean out BHA and RIH. Tag @ 9887'. Ream thru. RIH to td &wash last 2' fill. Circ clean. POOH. RU to run 4 1/2 production liner. 5/16/2011 Fin RIH w/4 'h" Inr. C&C while reciprocating Inr. Test lines . Mix& pump 40 bbls Seal Bond flush @ 12.5 ppg, 672sx"G" (141.2 bbls @ 15.8 ppg, yld 1.18). Set hgr. Unsting. C&C. POOH. 5/17/2011 Fin LD 4"DP and BHA. PU 2 7/8" DP. PU BHA w/mill and scraper and TIH on Sundry 311-172 • • 5/18/2011 Fin in hole to 10565'. Attempt to circ w/no success. POOH to 7850'. Break circ. RIH to 10585' breaking circ every 5 stds. Circ clean. Displace w/9.6NaCI/Kill. Start cleaning pits. 5/19/2011 Fin cleaning pits, flush lines. Test csgs to 4000 psi. Filter brine, incr wt to 10.2ppg. POOH. 5/20/2011 Fin POOH. RU SLB and run neutron log. RU EXPRO and run GR/CBL on 4 1/" Inr and 7 5/8" csg. Begin testing BOPe. 5/21/2011 Fin testing BOPe. Clear floor and service rig. RU Expro eline and RIH w/JB and 3.75" gauge ring to 10560' ELM. Rcvrd some coal, etc. Run 5/22/2011 6" tool in intm. PU TCP guns and pkr. RIH and set pkr @ 9666'. PU seal assy and DST string. Begin RIH. 5/23/2011 Cont RIH w/ DST string. Stab into packer&test. Pull out. PU test head and EXPRO eqpmt. Wait on daylight. Pressure test lines to 5k. Pressure test Surf control head and lubricator hook up to 5k. Displace brine w/N2. Sting into 5/24/2011 pkr. RU EXPRO test line to chk manifold. Test to 200/5k psi. Bled back to 2600 psi for underbalance. Drop detonating bar. Pressure incr. Open well and unload 6 bbls fluid. Began well test. Flow well for 1.5 hrs. Shut in (SI) 1 hr for build up#1. Start flow period#2. 5/25/2011 Cont flow period#2. Shut in for build up#2. 5/26/2011 Cont build up#2. Begin 4-point flow test. SI for build up#3 monitoring pressure at choke and annulus. Note: Submitted email request w/back up for verbal to proceed with completion. 5/27/2011 Cont same. Note: Received verbal approval to complete well as described in email and included in Sundry 311-188. 5/28/2011 Killed well. Set bridge plug @ 9695'. 5/29/2011 Set 2nd bridge plug for back up @ 9694'. Positively test to 1000 psi for 30 min. Unsting from pkr. Monitor well w/±300 psi negative differential for 30 min. POOH w/DST string. POOH w/ DST string. PU tubing & RIH w/ Dressed Seal Assy. PU SSSV and inject mandrel. 5/30/2011 RIH. Tag up @ 9666 space out. PU hanger, test lines, land out lock down hanger and test seals on hanger and seal assembly. Test hanger 5000 psi, pressure up annulus 500 psi 5 min test good. Flush and clean out all lines 5/31/2011 and BOP stack. ND BOP's. RU short tree, control lines, test void to 5000 psi 10 min good test. Install BPV. Begin RD of rig. ! i (Continue to RD rig). CO flange on tree, RU lubricator. RIH W/ X plug -set at 535', POOH. 6/1/2011 RIH set prong. RD wireline. NU flange and cap on tree. Test flange to valve T/5000 psi F/10 min good test. Install BPV. 6/2/2011 Release rig from Buccaneer Alaska Kenai Loop# 1 @ 1200 hrs on 6-1-11. 6/3/2011 Load out rig. • petrol e FREE SUBSCR -- !7 F €fcimn , r?i,in- 1 n; P -rtT rte. AttflTVMS http://www.petroleumnews.com/pnads/261330037.shtml Vol. 16, No. 30 Week of July 24, 2011 Providing coverage of Alaska and northern Canada's oil and gas industry Buccaneer releases Kenai Loop gas estimates; plans second well t-0 y-- The Kenai Loop prospect contains 31.5 billion cubic feet of natural gas and 3.9 million barrels of oil equivalent in proven reserves, according to operator Buccaneer Energy Ltd. The figures come from an independent reserve analysis conducted by the consulting firm Ralph E. Davis Associates Inc.,the Australian independent said in a statement on July 20. The analysis on the onshore field on the Kenai Peninsula put the "proven and probable,"or 2P, reserves at 38.3 bcf and 4.8 million barrels of oil equivalent and the "proven,probable and possible,"or 3P, reserves at 51.6 bcf and 6.5 million barrels of oil equivalent. The company calculated those figures using surface mapping, and pressure and flow rate information from the 10,680-foot Kenai Loop No. 1 that Buccaneer completed in May. The reserves totals are based on two sands, one at 9,700 feet and another at 10,000 feet. Second well this quarter Buccaneer plans to drill Kenai Loop No. 2 this quarter, a step-out well from the same location as Kenai Loop No. 1. Buccaneer hopes it can increase the reserve estimates for the prospect by testing the aerial extent of the two productive sands and by testing the sands below 10,000 feet that Buccaneer believes resemble those two shallower S • sands. The spud date for that well is currently dependent on Buccaneer securing a rig. Buccaneer Director Dean Gallegos said in a statement that as part of the company's three-prong strategy, Buccaneer plans an aggressive drilling program"for the development of the Kenai Loop field and expects to drill additional wells in the next 12 months." "We anticipate placing the Kenai Loop field into production by the end of 2011,"he said. Kenai Loop is north of the Cannery Loop unit and the city of Kenai,on 8,988 acres of state, Cook Inlet Region Inc. and Alaska Mental Health Land Trust leases in the area. Buccaneer recently arranged an institutional placement to raise$14.5 million for its onshore and offshore exploration and development program in the Cook Inlet. —Eric Lidji • • Aubert, Winton G (DOA) From: Stephen Hennigan [shennigan @peiinc.com] Sent: Tuesday,July 05, 2011 8:15 AM To: Aubert, Winton G (DOA); Saltmarsh,Arthur C (DOA) Cc: Andy Rike; Pete Dickinson; Pete Berga Subject: RE: Buccaneer-Kenai Loop#1 -Permit#211-043 Weeks Ending JULY 3, 2011 Petroleum Engineers. Inc, From: Stephen Hennigan [mailto:shennigan @peiinc.com] Sent:Tuesday,July 05,2011 11:14 AM To: Winton Aubert(winton.aubert@alaska.gov);Art Saltmarsh (art.saltmarsh @alaska.gov) Cc: Andy Rike(arike @buccaneerresources.com); Pete Dickinson; Pete Berga (pberga @atlamericanoilfield.com) Subject: RE: Buccaneer- Kenai Loop#1 - Permit# 211-043 Weeks Ending June 19, 2011 and June 26, 2011 Sundry 311-188 Gentlemen June 27 Wait .., 1En= "8- ._ _., 4 b.:get and tested e.:i{� Yi ?_ __ 11' _.i t _..,b ino i _. ,. F-nipple, RU St B RU sb.t kk e& test lub to 5k. Drop soap sticks. Swabbed Web T`-,ti A ed to test eopmt. St i_. . . Closed 3..SSf., Test_.Mme. Set PXN ptug and t... g { off pressure :i5; if. June...) Set Vetco - ; ._ .D ail test°ip" .. Cie BI location Secure*. -. , 1 1 S }L ?. iune 5 00 p S and pipeiin . Petroleum Engineers. Inc, From: Stephen Hennigan [mailto:shennigan @peiinc.com] Sent: Monday,June 27, 2011 4:14 PM i • • Aubert, Winton G (DOA) From: Stephen Hennigan [shennigan@peiinc.com] Sent: Tuesday, July 05,2011 8:14 AM To: Aubert,Winton G (DOA); Saltmarsh,Arthur C (DOA) Cc: Andy Rike; Pete Dickinson; Pete Berga Subject: RE: Buccaneer- Kenai Loop#1 -Permit#211-043 Weeks Ending June 19,2011 and June 26,2011 Sundry 311-188 Gentlemen June Wait on r n n enn . # ( SLB. t s. k , e, test June _ �; �_ - �., ,�_�''.;�?#'and tested�i#�"`.��� to �; L_� Cut�<x � _ below u°�'�. ,try .__. :�., � � _{ to :E soap Swabbed. c flowed to test hiprn Si Closed S < ,x, Test same. Set PXN s �L June 20 Set :et.o `PV test eqprit . ea. k),..7.ation Secure tree. a i _SECURED. June 30. Waiting on e.xtp'r#t and t i p line. Petroleum Engineers, From: Stephen Hennigan [mailto:shennigan @peiinc.com] Sent: Monday,June 27, 2011 4:14 PM To: Winton Aubert(winton.aubert@alaska.gov);Art Saltmarsh (art.saltmarsh @alaska.gov) Cc: Andy Rike(arike @buccaneerresources.com); Pete Dickinson; Pete Berga (pberga @allamericanoilfield.com) Subject: RE: Buccaneer-Kenai Loop#1 -Permit# 211-043 Weeks Ending June 19, 2011 and June 26, 2011 Sundry 311-188 June 13-19 -Wait on equipment June Wait on ervlipment June 22 —Tested tree to 5000psi. Move _in e test equipment SV RD.u.,�'22 � >,...>> .._. .:l# �, plug. RU lubricator F'��t_tr >`<it e'ttii:, Test to ta, Open ';'_S?:i. Log G , and .�J:�.,,, tc.£�a?-:�?". and secure vveP for nic-ht, June 23--Wait on inmr nt, June 24—.._ <.,,r C +.t_- and i tab.ica. ,r. Test to 5k Run 4 5 gauge,to p Y;Y with 2.20 gauge. Tag ,°o`c4, RD and secure tor night, " June 25-25—Wait on equipment_ 1 S Aubert, Winton G (DOA) From: Stephen Hennigan [shennigan @peiinc.com] Sent: Monday, June 27, 2011 1:14 PM To: Aubert, Winton G (DOA); Saltmarsh,Arthur C(DOA) Cc: Andy Rike; Pete Dickinson; Pete Berga Subject: RE: Buccaneer-Kenai Loop#1 -Permit#211-043 Weeks Ending June 19, 2011 and June 26, 2011 Sundry 311-188 t _ 13-19 -Wait on equipment 1. e _on 7Tent s ' t_, ......_- Tested d tree to S F0;-! , . Move_ in E' -;.. test ec,'•..;ip ent June 22 ; .. ?i . . :._,. and z- ,nf._ Test to _.,. Open 5055<. .- g GB and t.a Lt_. .� 1o.,_.t.... RD and`s- } h?, juoe on equipment_ June and �"e t o - L 1�'� t-• pl Z ; i�� f,it:..1 2,20 gauge. 7 S- e D F..r,#,... _. � .. ,,.., .._:;( _ �k,U lubricator. _. _ Run .. <. ..�'+tag C. ._ ... _l r .> and secure ...el for June 29- rlt on equipment. Petroleum n € er , Inc< From: Stephen Hennigan [mailto:shennigan @peiinc.com] Sent: Wednesday,June 15, 2011 9:15 PM To: Winton Aubert(winton.aubert@alaska.gov); Art Saltmarsh (art.saltmarsh @alaska.gov) Cc: Andy Rike (arike @buccaneerresources.com); Pete Dickinson; Pete Berga (pberga@allamericanoilfield.com) Subject: RE: Buccaneer- Kenai Loop#1 -Permit# 211-043 Weeks Ending June 5, 2011 and June 12, 2011 Sundry 311- 188 GentiemeD May 30 . -_ r_ 953 string Pt=tubing & BIN wi Dressed Seal Asst. PU 5559 and kted mandrel. R Tag 9.366 space out PI) hanger:test hoes,land out lock down hanger and test seals on ho.ntl . ....,,., seal :.em=3• May 11 Test hanger-. 50 s. pressure e no annulus s psi 5 min^ ?st good. Flush and clean out all lines and BOP stack, D short rem. control lines, test void .. 00,si 10 min good test. install BP V. Begin RD rig. le to RD tig`, CO flange on tree Rti lubricator .:.OH ',}y:, pug set at_,__' OOH. M11 set p r .r RD , fl.-7:nge and can on tree Test $ ` ' to valve �100 psi i 0 ._id test. install 3 €. fit:� June 2- Release `SS rn Bu., e :F et Alaska : G, _`of # 1 ! 1200 hrs o 4 1._ June_- Load out. g 1 • • Aubert, Winton G (DOA) From: Stephen Hennigan [shennigan @peiinc.com] Sent: Wednesday, June 15, 2011 6:15 PM To: Aubert,Winton G (DOA); Sattmarsh,Arthur C(DOA) Cc: Andy Rike; Pete Dickinson; Pete Berga Subject: RE: Buccaneer-Kenai Loop#1 - Permit#211-043 Weeks Ending June 5, 2011 and June 12,2011 Sundry 311-188 3entk rn e pooH ca.f DST string Pt,tubing y. `JIH', Dressed `seal ss Z Snt _.. ei.r mandrel t I " Tag r 1� r space._.._ pti hanger, test frees, l an. out l .k down hanger ef x{nt_. ..._._t ort+ n hari`e. and seal os e 4 _ _ May 31-Test hanger 5000 psi pressua e .u'u'_. c00 psi 5 mi.n test good Ffirsh and dean out ail lint', {; an..t BOP stack, v ND BOP'- R short ;eC control lines, test void to..'7,000 psi 10 min good tie:t, tests. BP . Begin RD of rig. $ x x. to ig CO flange on tree, i lubricator-l� RIP W/ plug set at y 35 P0014. RIP set prong. RD _...,_. � �... u- RD . . :� i�. . 'j �` ':��.. i sr cif? }_ , .r..re ,. range an ca or tree. .Ia g, oval valve s :0.°" :%ad 10 a. 'clod B a, June 2- Release se rig fm'" B's ccaneef—Alaska 1 Kenai >con (di 1260 on nine-s Load r i S. June 4– .. I.•r? rig move. . .l Begin secure location?while wait on eurnt for Sundry 311-18g, June _. _..>. _ �.... ''1_.."°, loc stio T'•while vv,,th on eo mt. Ili Petroleum Engineers,rs Inc, From: Stephen Hennigan [mailto:shennigan @peiinc.com] Sent:Tuesday, May 31, 2011 12:15 PM To: Winton Aubert(winton.aubert@alaska.gov);Art Salbnarsh (art.sattmarsh @alaska.gov) Cc: Andy Rike(arike @buccaneerresources.com);Jim Windstrup(jwindstrup @peiinc.com); Pete Dickinson; Pete Berga (pberga @attamericanoilfreld.com) Subject: RE: Buccaneer-Kenai Loop#1 - Permit# 211-043 Week Ending May 29, 2011 Sundry 311-172 Gentlemen 1 • • Cont .IN r DST string. Stab into packer &test. Pull out. `z!r test head and EXPRO eqpmt. Wait on 1:Y:i3 rPressure test re:to 5k. - May 24— Pressure to t Surf control n We. and lubricator ,- Y . _ brine yt A Sting i tl 4k_, EX PRO test z:. CO r '}psi for underbalance, .P detom-iting bar. Pressure incr, Open well and unload 6 bb7S fluid. Began :t well test. t.. well for _,#: r"_, shut In t Sk; hr for build up 41. Start flow period#2. May 25 flow period _ Shut in � build t.May tau,;,j up ,, in h_ on Si for : _ monitoring pressure i choke and n€ii 'fi. Note; Submitted email rc,,q.._st-'z';,' back up for verbal to proceed d ,v ai completion. Nla:),27- Cont same, Note: Received verba :.4.pprov:1 compiete we as descfibed in ernai;. May 2S— Killed Set bridge plug @ 9695'. May 29- Set 2 bridge plug for back up @ 9694. Positively < __to 1000 psi for .c, i` U. ,. istlne from nOr. Monitor well s}'- ±301 psi negative _...eren- ;for Bo DST string, St:..,_.,. 0r.. have begun the c t`. t-on sundry '- Please let me know if there is anythif:Ig else you need_ Petroleum Engineers, / c< From: Stephen Hennigan [mailto:shennigan @ peiinc.com] Sent: Monday, May 23, 2011 11:19 AM To: Winton Aubert(winton.aubert@alaska.gov);Art Saltmarsh (art.saltmarsh @alaskagov) Cc: Andy Rike(arike @buccaneerresources.com);Jim Windstrup(jwindstrup @peiinc.com); Pete Dickinson; Pete Berga (pberga @allamericanoilfield.com) Subject: RE: Buccaneer- Kenai Loop #1 -Permit# 211-043 Week Ending May 22, 2011 Sundry 311-172 .- l__ May 16 ... R1H 4 i,.4g c&r. while Feciprocating -_st Ones ._.!k pump 40 bb _ Seal Bond flush f`' 2.5 ppg, ,... _.c .. bids i.: 15,8 PPg,Yid 1:18), Set hgr. UnsIing. ._. POOH, 2 . • May 17 Fin J `0P and BHA., P`. 0' DP . ... BHA mil: and scraper TN, May 18 Fin in hog,.. to 105651-. Atte ua o t.rc w/no success. POOH to 7850'. Break chi:, RIH to 10585' breaking c`irc t-ic Displace 9 Nat_i, Ci. Start clening Pratt bits, M v 19 Fin cleaning pits,flush iines, Test rsgs to 4000 psi, ,r h. incr wt _0,2o g POOH. May n roai. 'S S P and ru:: neutron log, Rti _XPPO amd run GRIM_on 4 _ t=ar and 7 5/e.' esg Begin n t m ROPe.. Y>... testing B i :. ear floor and service r. May 22— :._ Expr o e. e and 1;`. w! 10 and 4,75 gunge nag to 1.05601 ELM, Rc rd some coal, etc Run 3 tool in intm. IC guns and F,:°'g'._. lfz1H and set Or .) 9666', T-',713 seal t ssv and OPT string:. Begin RIP, Please let me kn`4c:,if`here is anything else you Petroleum Engineers, Me, From: Stephen Hennigan [maitto:shennigan @peiinc.com] Sent: Monday, May 16, 2011 12:28 PM To: Winton Aubert(winton.aubert@alaska.gov);Art Saltmarsh (art.saltmarsh @alaska.gov) Cc: Andy Rike(arike @buccaneerresources.com);Jim Windstrup(jindstrup @peiinc.com); Pete Dickinson; Pete Berga (pberga @allamericanoilfield.com) Subject RE: Buccaneer- Kenai Loop#1 - Permit# 211-043 Week Ending May 15, 2011 Gentlemen r May 09- ?ri . ..)5:rs s.:. 5r 0 , Circ up break. Drill to 10 80 Circ clean. Perform short it Circ. May 10 -. c, Perform another short trip, fire clean. POOH. Test Bo Rt 3 logging equipment, May t. 9421', . P., bit and _ TiP, c 9431'.. Wash and ream. RIH. clean, t � Tagged POOH. {'' .l a"',. BHA and _3` �_ POOH to casing. y.c shoe tor short trip, RIB May .1g bridge and work clean 10005'. Fin hole. Circ lean. POOH. RU logging: __olss. RIP a d log U 1.0676'.. r:- ..tt. arm le Check tar 3 • • • • SIIRTE ALLASEA SEAN PARNELL, GOVERNOR trt H ALASKA OIL AND GAS 333 W.7th AVENUE,SUITE 100 CONSERVATION COMMISSION ANCHORAGE,ALASKA 99501-3539 PHONE (907)279-1433 FAX (907)276-7542 E. A. Rike EVP Operations Buccaneer Alaska Operations, LLC di ) -04-3 952 Echo Lane, Suite 420 Houston, TX 77024 Re: Kenai Peninsula Field, Exploratory Pool, Kenai Loop #1 Sundry Number: 311-172 Dear Mr. Rike: Enclosed is the approved Application for Sundry Approval relating to the above referenced well. Please note the conditions of approval set out in the enclosed form. As provided in AS 31.05.080, within 20 days after written notice of this decision, or such further time as the Commission grants for good cause shown, a person affected by it may file with the Commission an application for reconsideration. A request for reconsideration is considered timely if it is received by 4:30 PM on the 23rd day following the date of this letter, or the next working day if the 23rd day falls on a holiday or weekend. Sincerely, 091- Daniel T. Seamount, Jr. Chair DATED this ) ?day of May, 2011. Encl. r 64444, ullk ,,` STATE OF ALASKA ' �[ (A"\ A v ti ' 5�'//. ALASKA OIL AND GAS CONSERVATION COMMISSIO N J SV6 APPLICATION FOR SUNDRY APPROVALS 20 MC 25.280 Masks D$ &Gast Com&omI111SSton 1.Type of Request: Abandon ❑ Plug for Redrill ❑ Perforate New Pod ❑ Repair Well ❑ Charie1RfProgram ❑ Suspend ❑ Plug Perforations ❑ Perforate Q- Pull Tubing ❑ Time Extension ❑ Operations Shutdown ❑ Re-enter Susp.Well ❑ Stimulate ❑ Alter Casing ❑ Other. TESTS SI 2.Operator Name: 4.Current Well Class: 5.Permit to Drill Number: Buccaneer Alaska Operations,LLC Development ❑ Exploratory El_ 211 043 3.Address: Stratigraphic ❑ Service ❑ 6.API Number. „�j,/ 952 Echo Lane,Suite 420,Houston,Texas 77024 50-133205950000 (�j� 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 IS No E] Kenai Loop#1 9.Property Designation(Lease Number): 10.Field/Pool(s): Kenai Pennisula Exploration MHT 9300082 11. PRESENT WELL CONDITION SUMMARY Total Depth MD(ft): Total Depth ND(ft): Effective Depth MD(ft): Effective Depth TVD(ft): Plugs(measured): Junk(measured): _10680 -10667 - 10680 - 10667 na na Casing Length Size MD /' TVD Burst Collapse Structural 138 16 138 138 na na Conductor Surface 3057 10.75 3057 3055 3580 2090 Intermediate 8024 7.625 8024 8021 6890 4790 Production TB Liner(Prod) ±2975 4.5 ±10680 ±10667 8430 7500 Perforation Depth MD(ft): Perforation Depth TVD(ft): Tubing Size: Tubing Grade: Tubing MD(ft): na na na na na Packers and SSSV Type: Packers and SSSV MD(ft)and TVD(ft): na na 12.Attachments: Description Summary of Proposal © 13.Well Class after proposed work: Detailed Operations Program Li BOP etch C 1 Exploratory U- Development U Service Ll 14.Estimated Date for 15.Well Status after proposed work: 17- ay-11 Commencing Operations: Oil ❑ Gas El- WDSPL ❑ Suspended ❑ 16.Verbal Approval: Date: WINJ ❑ GINJ ❑ WAG ❑ Abandoned ❑ Commission Representative: GSTOR ❑ SPLUG ❑ 17. I hereby certify that the foregoing is true and correct to the best of my knowledge. Contact Steve Hennigan 337 849 5345 Printed Name A.Rike Title EVP Operations Buccaneer Alaska Signature Phone Date i; n / 713 468 1678 11-May-11 COMMISSION USE ONLY Conditions of approval: Notify Commission so that a representative may witness Sundry Number: 3\1"'1-1 Plug Integrity ❑ BOP Test Mechanical Integrity Test ❑ Location Clearance ❑ Other: Are rot<e4 cock%-.. 1 d - '/O3 itJwtrlci eer t'JI( Cew f/ tt.frn. . T'ec f B O f E 'Lo (loco p -c g4.Z w,kilt u W t. Subsequent Form Required: 1 c9 _ q 07 (�7n tAkt I/ 601 4,pIQ (,Nr-• 1 _ 10 — 4 0 (4 t.V o v - ere en-a t ova S P Gt-O Oc7 w'- Approved by: COMM SSIONER THE COMMISSION Date: 5/0 7i / J DMS MAY 17 ,T` c- -/�, No Form 10-403 Revised 1/2010 VK 1 1J Submit in Duplicate Buccaneer Alaska Operations, LLC Kenai Loop #1 Drilling Permit # 211 043 Drillstem Test Procedure Well Conditions • Although unknown, well is considered to be normal gradient or less. • See current Wellbore Diagram (attached) • Well will be filled with NaCI/KCI (±10.2 ppg) • Well is a straight hole. • Calculated underbalanced when perfs are shot will be ±500 psi. Preliminary Proposed Intervals to be Tested 1) 10,010' — 10,066' MD — In 4W liner 2) 9,706' — 9,728' MD — In 4W liner 3) 9,026' — 9,040' MD — In 4W liner 4) other possibles some in 7-5/8" casing Note: Depending on additional detailed log analysis, more or less zones may be tested. Cased Hole Pre-DST Work • Tandem bit & scraper run for 4W liner and 7-5/8" casing • Verify rams in plac r welltest/ completion workstring tubing. Test BOPe- rams and misc to 30 000 isi and hydril to 300/2500 psi witnessed by AOGCC and recorded on a c 4 • Pressure test casing to 3500 psi equivalent to final completion test fluid weight • Swap wellbore fluid for filtered completion test fluid (weight to be determined) • Run Compensated Neutron Log and CBL (liner and intermediate) and evaluate same. • L/D drillstring. PU workstring/production tubing. Notifications • FAA • City of Kenai • Others as identified Rig Up Testing Equipment 1. Review the SPCC plan; HSE plan and all other pertinent procedures. 2. Make up the following Expro test equipment as per attached layout diagram: a. Surface safety valve (air actuator) • • b. Choke manifold c. Heater/Separator combo d. Vertical scrubber e. 60' flare stack f. 400 bbl Tank g. NOTE: Control Head with hydraulic surface safety valves will be installed and tied into choke manifold after guns are correlated on depth and packer set. h. The Expro control head wing connection is 6",:.'1502 Weco which will be crossed over to a 3" 10K test line to choke manifold. i. Berm in tanks and test equipment with the approved containment. j. All hard-line upstream of the Choke Manifold is rated for 10K psi service. The flare line, produced fluid line and relief line from the separator is rated v for 2K psi service. k. Run the gas from the separator to the flare. I. Run the produced fluids from the separator to th ,400 bbl tank on location. Note tank can only be filled to 80% capacity as per the SPCC plan. m. Run the relief line from the separator to the flare. Perforate and Test Interval #1 in the 41/2" liner 3. Conduct Safety Meeting with all personnel concerning perforating and explosives procedures before picking up TCP guns and DST assembly. All non-essential personnel must stay clear of the rig floor during pick up and lay down operations. 4. The TCP guns will be 2.875", 6 spf 60° phase RDX Deep Penetrator Charges. The interval to be perforated and tested is: 10,010' — 10,052' MD (Tyonek) 5. Ensure IDs, ODs, and lengths of all tools are accurate. Firing heads will be a mechanical bar drop system and a hydraulic actuated system. 6. P/U and TIH with the DST/TCP Assembly#1. a. RIH with the BHA at a steady pace of 1 minute per stand. i. NOTE: Drift all collars, tailpipe and tubing b. TIH to a pre-determined depth to achieve a ±500 psi under-balance to the estimated formation pressure. c. At this depth, pump down the test string and verify that the hydrostatic stop- fill valve (HSFV) tool is closed by pressuring up to 500 psi. d. Bleed pressure to zero and continue TIH with dry pipe. • • • • 7. Just prior to getting on depth, accurately determine pick up, slack off, and neutral weights. 8. R/U E-Line. RIH with GR/CCL for depth correlation to RA tag. 9. Space-out and place guns on depth. 10. Rig up control head with hydraulic surface safety valves. 11. Set JS-2 packer with 20K down weight. 12. R/U all surface lines. Open packer by-pass by picking up on test string and leave open during all surface equipment testing. 13. Pressure test control head and surface lines to 5,000 PSI or as per company ' representative. 14. When all surface and well equipment test have been concluded, close the packer by-pass and stack minimum of 20K. 15. Hold Safety meeting, testers to pre-heat line heater and light flare pilot 16. Pressure 7-5/8" x 2-7/8" annulus to 3500 psi. 17. Open control head crown valve and allow detonation bar to fall. Close crown valve and wait for gun detonation. 18. Monitor well with bubble bucket. radually open the well through the choke manifold and unload test fluid to 500 Obl tank. 19. Once there is adequate gas to surface, turn well to test separator for cleanup. 20. After sufficient cleanup, shut well in downhole by closing tester valve (ball valve) for 1st pressure buildup. 21. After ±2 hours of shut in, open tester valve. 22. Open well at manifold on a 10/64" choke. 23. Gradually step open choke while monitoring flowing tubing pressure & flow rates. 24. Once a maximum desired flow rate is achieved in the 2nd flow period, flow well at a stabilized rate for up to 24 hours or until it is felt reservoir limits can be determined. Gas will be flared. 25. Shut well in downhole for 2nd pressure buildup for approximately 24 hours by closing tester valve. • . • 26. Open tester valve. Open well at manifold on a positive 10/64" choke. 27. Conduct a 4-point test on 10, 12, 14 & 16/64" positive chokes. e. Note: Final choke sizes will be determined based on previous flow data. 28. Once 4-point test is concluded, start kill procedures. 29. Bullhead a full volume of filtered kill weight fluid to perforations to sweep gas from test string. 30. Open packer bypass and monitor for gain or loss. If static or a gain, go to step (a). If losses are extreme, go to step (b). a) Reverse out below packer two test string volumes. Monitor for losses. b) Close packer bypass and prepare a fluid loss pill. Open packer bypass and spot pill down tubing to ported sub. Monitor for losses. 31. Once well is static, R/D control head and surface equipment, un-set packer and POOH slowly to prevent potential swabbing. 32. Lay down TCP/DST assembly. c) CAUTION: Gas may be trapped between gun tandems. Download gauge data and distribute. 33.Repeat perforating and flowback procedure and shut-in procedure for all subsequent zones for the 41/2" liner and possible 7 5/8" intm/Production casing. Operations following well tests — Operations Shutdown 1. Rig down and release all testing, EL and SL equipment. 2. Run 2 7/8" 6.5 ppf modified 8rd tubing installing required completion hardware. 7 Space out tubing and land hanger. ND BOP, NU tree and test to 5000 psi. 3. Secure Well. Set BPV in the tubing hanger and ensure all valves on the tree are closed. Put tree cap in place. 4. Remove all valve handles, etc and send to storage for keeping along with ALL of the tree and equipment specification papers. Install fencing around well and well identification sign. 5. Rig down and move out drilling rig. 6. Operations shut down. Notify AOGCC and City of Kenai. • • • 5.35.080 Shut-in. If a well has been drilled which is or can be made capable of producing gas or oil in commercial quantities but for which there is a lack of either a market at the well or of an available pipeline outlet in the field,said well may be suspended or shut in while the drilling and production permit issued hereunder is still in effect,and the drilling and operation permit shall remain effective,and is automatically continued,during such period or periods of suspension or shut-in.The permittee shall give written notice to the City of his or her intent to suspend or to shut in the well which notice shall present the reasons therefore and indicate the good faith attempts that were made in securing a market or providing for the transportation of the oil or gas.Said suspension or shut-in will be effective for one(I)year from the date of the notice to the City and may be renewed for additional one (1)year intervals upon review and public resolution by the City Council.During the suspension or shut-in the well shall be secured by fence, locks,or other security devices as approved by the City Manager.(Ords. 508, 800) 7. Secure location and clean up as per agreements with surface land owners, City of Kenai, and AOGCC requirements. 8. Prep for surface production facility. ' • • • • Buccaneer Alaska, LLC Kenai Loop #1 Expro Test Equipment Layout Diagram e I-CHOKE MANIFOLD -SEPARATORMEATER COMBO 3-VERTICAL SCRUBBER 4-FLARE TACK 5-5Q4 BBL HORIZONTAL T V :r � I 2 1 gaze , sr • Zone tests WELLBORE (5) • Stephen F.(Steve)5Hennig/1 an • • 6/2011 Buccaneer Opns LLC 0 • l enai Alaska Loop f i i cat 0 1 Kenai Peninsula 35 (} Alaska er#. 11 043 141TN. � 1~ rarientsf t SC s TO/1/ DIR. aa�, Evert uritt 1D rrvn B( * Cs user: HrOLE SIZE USDW:' EstRKB 15' Air Gap .. `.. Wtr.Dpth a. (► 123'pen $''' 0.5#N8OHC Welded Drive Sz>'-' 16• ROP/Gas log Cond/Drive to TD. l' CBL EXPRO 04_29-201113 11 w i'. 16.0 Triple combo 3057 45.5#L80 BTC 10 3/4" 3055' Pump 42 bbls Mud Clean II with red dye. Pump 3 bbls ' LOT#2 @ 3352' MD 14.7 PP9 emw water. Test lines to 2k psi Cmt to surf@ 520 bbls: Pump 564 bbls 12 ppg cmt. Pump 5 bbls water to clear POSSIBLE Future Disposal Interval lines. Switch to rig pumps to displace w/45 bbls'88 ppg mud. Floats heldUnsting. CIP @ 21:000 TOC t5000'md PP- LO 15.0 ppg emw' s.6 ppg KCL Mud Logging: Manned: 2 sx every 10',3000'to TD , Test Packer set @e various e depths ` depending on zon tsted f #3 7,490'-7,520' z�CBL Expro to be done after cleanout n s 7ca'�� 9 �� 13 Quaa combo pis ' 34" 2 29.7#LSO BTC top/Vam btm 7 5/8" 8029' [¢` TOL±7750'MD/TVD 2¢: [¢2 BOT 5 1/2" 17# x 7-5/ 8"29.7-39#;xo to 41/2 1 hrs-R/u BJ for Cmt Jab PJSM for Cmt'Job-Tst Surf Lines 4000 Psi- 20: [¢2 80 KSI Hyd Flex Lock Lnr hgr w/ZXP LT Pkr OK 0.25 hrs-Repair BJ H2O Line(cement plug in line) 1 hrs-Mx& 2¢: ( 2 Pump 30 Bbl 1OPPG Spacer&Mx 3 Bbls Cmt (Packing over/heating 2,{. [¢z Sldn&Observe) 2.25 hrs-Mx&Pump 126.5 Bbl Lead to Slurry wt 13.5 20: : [¢2 3 hones planned to be vie rfd&tested PPG Follow w/52 Bbls Tail to Slurry Wt 15.8 PPG Shtat/dn-Drag Plug& z¢, [¢z Pump 5 Bbls H2O S/dn&Displace w/`Rig Pump-Plug Bumped @ z z Calculated Displacement Press/up 1000 Psi(1900)&hold 5 Min- ¢• [¢ Bleed/off-Floats HeIdCIP=06:05 HrsNote: Btm Shoe @ 8024'&Float 2¢. [¢z #3 9,026'_9,040' Collar @ 7938' z¢ [¢2 2¢. [ 2 FIT#3 13.5 ppg emw 2¢ [¢2 2¢: [¢�}2 2¢: [7�(�('2 2¢�l: [Y2 2Y': [(2 20: ['��h((2 2`h: [Y'2 #2 9,706'°""9,728' 2¢: [¢2 MiiMMMEMM X I (n . M M M O - J O r r 7. 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IP ' f-- ' ops oqt JO ISOM soil pen ttotputepz aqi osuot sa;st Ito aqt smolt toottroong pug.isujt pun mill"plum tuittoN otp.iq poumo 43CjilISLIIS II:ION JO SII,)alp.iti poutte oottpas pue punsoput podoe to;potter purl pottepoopun:Isom_ 1 ova aqt of ammo) pug rompo tutor ops posoderti alt sowtodos tow tspo otp of spitupost po purq qtnes-tp.tou oseof set$.q.po alp Smog 3,3,21.wrtil pus,■ 1.110 puzi tom qttroft puttapi oil)MI pouste oouptoqus tuttalq Jo..inaoto tq panda oorpits putt tamsnput mine le;pouer poet podepoopul:ILLI3 ascot sail..y Ito otp sprit toottuootuq put-d3wo purl purl,quvoti Fula ps,'.4111.1:41 paILLIO 43"gftligILS SaatlaS SlajUS IY'WWII tuttettedtt000 tt0000tt.iq postt Spttattna st,iisodoxi pm ivu jo.ip,-)otp st roux.°&lupus poltroon to;potter puts padol000u _Ituttes seat sr4 zy pe alp smog IdalltL3alle put astuo pitui tint,/quroft toptopq otp 4 pottoto aoultusqus ntuoN jo.in„)41p A pouoto opus pus paqsnput ttodne tot potter purr pattopooptia :qtroN:toostt lutoq.tipttotmo st...io todoul am of poruiptt purl otoq 4tILDS4)(1):.414daid Itapunautts :nolo:3w t e sup.nt pomm)M* on jo.nn no I um alp inaci MI as:v-1 s exs15-F.1S,V VD 0 < < V-sz s CC tcs ..5: 0 - 1- 0 ei 0 r V..:.. 0 aICCLZ t.I. a rC(.0 s*t, , .t 44e v NilitfAV1XJ "..?, I I g 6 _ i - t t 1 , x z n g t i , a,.. I 1:t' " 4 , .,. —7--4--- 1 -\ I -, vz , :,-Vilt7-1 I I i 0 eo C,Vf ,zt.9ow o \ J . 1 3 1111 9 .-- \..0. ,.. \‘) — ' 4 , 2 ri 1 1 53 \ 9 4 ' e? g I § 4 .1' . ..... —", \ , ...., --- ...,.. *S.:0*.311-0“s ..,..... .....- .,,,,.,. ....,.. '^^- ..„.„. 0 "..... ..„„ °1)1 QVOU .,ilvavkv ._,,, — — is .g,,,wv....:4?N,4',07,:*& ..... ....,.. ...,.. ..--'*0-.... ...... „...,.. 1 .1-13Y4i, i.v1,J.Th i0...2 fins:zkz.v.i.OVve • • • •FE 7(\-- - 1 Er [lc 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 E. A. Rike EVP Operations 3 Buccaneer Alaska Operations, LLC ti 0 4 952 Echo Lane, Suite 420 n.‘' Y ' Houston, TX 99024 Re: Exploratory Field, Exploratory Pool, Kenai Loop #1 Sundry Number: 311-188 Dear Mr. Rike: Application for Sundry A Enclosed is the approved App ry pP roval relating to the above referenced well. Please note the conditions of approval set out in the enclosed form. As provided in AS 31.05.080, within 20 days after written notice of this decision, or such further time as the Commission grants for good cause shown, a person affected by it may file with the Commission an application for reconsideration. A request for reconsideration is considered timely if it is received by 4:30 PM on the 23rd day following the date of this letter, or the next working day if the 23rd day falls on a holiday or weekend. Sincerely, 0 i Daniel T. Seamount, Jr. J Chair V" DATED this D day of June, 2011. Encl. Ill It . • STATE OF ALASKA • fit 6 ALASKA OIL AND GAS CONSERVATION COMMISSION l/►144A" APPLICATION FOR SUNDRY APPROVALS 04/02.12.0/1 /Zoi 20 AAC 25.280 1.Type of Request: Abandon ❑ Plug for Redrill ❑ Perforate New Pool ❑ Repair Well ❑ Change Approved Program ❑ Suspend❑ J kPlug Perforations ❑ Perforate ❑ Pull Tubing ❑ Time Extension ❑ Operations Shutdowa-R-- Re-enter Susp.Well ❑ Stimulate ❑ Alter Casing ❑ Other: Comple to& Shi ut in 0 2.Operator Name: 4.Current Well Class: 5. Permit to Drill Number\ Buccaneer Alaska Operations, LLC Development ❑ Exploratory rj 211 043 3.Address: Stratigraphic ❑ Service ❑ 6.API Number: 952 Echo Lane,Suite 420, Houston,Texas 77024 50-1332959'59969• 2.0 S 4 S — - 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 0 No ❑ Kenai Loop#1 9. Property Designation(Lease Number): 10. Field/Pool(s): Kenai Pennisula Exploration MHT 9300082 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): 10680 10667 10680 10667 Casing Length Size MD ' TVD Burst Collapse Structural 138 138 138 na na Conductor Surface 3057 10.75 3057 3055 LUgC Intermediate 8024 7.625 8024 8021 6890 4796 Production TB Liner(Prod) 3735 4.5 10678 10667 8430 7500 Perforation Depth MD(ft): . Perforation Depth TVD(ft): Tubing Size: Tubing Grade: Tubing MD(ft): 9705-9725, 10008-10049 9698-9717, 10000-10040 2 7/8" 6.5 ppf L80 9666' Packers and SSSV Type: Baker 4 1/2"Model D Packers and SSSV MD(ft)and TVD(ft): Pkr: 9666'MD/9659'TVD SCSSV: 12,Attachments: Description Summary of Proposal El 13.Well Class after proposed work: Detailed Operations Program ❑ BOP Sketch ❑ Exploratory 19 Development ❑ Service ❑ 14. Estimated Date for / 15.Well Status after proposed work: Commencing Operations: (\?� y 11 Oil ❑ Gas El WDSPL ❑ Suspended ❑ 16.Verbal Approval: t//q /Date: /-1/ b -t ell WINJ ❑ GINJ ❑ WAG ❑ Abandoned ❑ Commission Representative: Y ,�{-/4 /&l, GSTOR ❑ SPLUG ❑ 17. I hereby certify that the foregoing is true and correct to the best of my knowledge. Contact Steve Hennigan 337 849 5345 Printed Name E.A. Ri.- Title EVP Operations Buccaneer Alaska / • • • Signature ' / (r `hone Date � 713 468 1678 25-May-11 / T/ I `� COMMISSION USE ONLY Conditions of approval: Notify Commission so that a representative may witness Sundry Number: 31 l J(z� Plug Integrity ❑ BOP Test ❑ Mechanical Integrity Test ❑ Location Clearance ❑ RECEJ E 3 a� Other: JUN 01 2011 Alaska Oil& Ge$ Cans.Gjnur,issian Subsequent Form Required: 1 0— c°1. APPROVED BY / Approved by:� / COMMISSIONER THE COMMISSION Date: `/3 /' / Form 10- 0191 I�t \, . ORI GINAL Submit in Duplicate IJtY 0 31011` • • • • Buccaneer Alaska Operations, LLC Kenai Loop #1 Drilling Permit # 211 043 Procedure to Prepare well for Production (Remove water from across perforations) 1. Rig up Expro Well Test on an environmental liner to contain any spills. The equipment needed will be the choke skid, vertical separator, flare stack, methanol skid, pressure tested flow lines and open top tank. Berm liner around choke skid, separator and flow back tank to contain any spills from hitting the ground. 2. PRESSURE TEST — All flowlines, pressure vessels, chokes, lubricator and tree to a minimum of ,% 5,000 psi. 3. Rig up Vetco Gray to remove back pressure valve immediately below tree. 4. Pressure up control lines to Baker Surface Controlled Sub Surface Safety Valve set at 536' MD to open position to allow wireline operations below valve. 5. Rig up Pollard Wireline to remove plug set in XN profile on top of Baker SCSSV at a depth of 535' MD. Rig Pollard Wireline back off well. 6. Rig up Expro Wireline to punch holes in tubing tailpipe at ± 9695',MD set on 5-27-2011 and correlated to SWS Compensated Neutron log dated 19 May 2b11 POOH 7. Attempt to flow well through Expro well test equipment. 8. If no flow, continue with dump bailer swabbing runs. Rig up Pollard Wireline, dump bailer and methanol based soap to dump on top of 4% " packer set at 9666"MD. Dump soap and proceed out of hole swabbing fluid through Expro well test equipment to flow back tank carefully monitoring pressure at choke skid. If well begins to flow, flow well fluid to tank monitoring returns. Strap tank to verify volume of returns. Total volume of kill fluid used was 55 BBL and volume of tubulars to bottom perforation should not exceed 62 BBL. Additional swabbing runs using the dump bailer may be needed. As well begins to flow, reduce choke on skid to 20/64 initially and as load water is produced, reduce choke to 14/64. NOTE: Notify Kenai city dispatch prior to igniting flare if needed. • • • • 9. OPTIONAL: If wells does not begin to flow, if may be necessary to cut off tubing tails above plugs set in 4 %2" packer tailpipe @ 9695' MD using Expro wireline. Log on depth CAREFULLY prior to cutting. a. Using Expro radial cutter, cut off tubing tail. b. Dump approx 1 gallon of soap above each set of perforations using bailer for 2 3/8" tubing. Using 2 7/8" bailer dump approx. 1 gallon soap above packer at 9666' MD and swab well coming out of hole as in step 8 above. Following clean up of well, prepare for Production logging using Expro PLT string. c. Remove wireline tools from well. 10. Close Sub Surface Safety valve. 11. Re-set plug in SCSSV at 535'. 12. Bleed pressure off at surface to verify valve and plug integrity. 13. Install Back Pressure Valve. Shut in well at surface. 14. Secure well, remove valve handles to storage and lock down wellhead. Buccaneer Alaska Opns LLC iii Kenai Loop # I • Block/Sec 3 6N 11W • Wildcat 0 Kenai Peninsula 0 Alaska - .: 211 043 PMrN. PP MW PG C.®.RS/ CSG TOPS/ DER. (Mg t me) EVALUATION MDrfVD 5k tree TOt Ceg Dear. CASING at DOLE SIZE L'SDW' Est i kb 15' I>oCF3�tTI 4t3t� A LAi ap Wtr.Dpth _._ 0' ■r ' I �, getrvabls tbg plug g' 8.4 9.8 123'pen.._---1'at--' ,r ROP/Gaa log Cond/Drive to TD. .Si!NBGAC Welded Drive St» 16 ChemIcal in]Mandrel±500' a p 2 7/8 6.5 L80 2.347 ID API EUE 8rd M Il 4"SS 0 049 wall chem inj line J11' 5. :- - CSSV 1565' f L EXPRO 04-29-2011 160 Tnpt combo 30 ' ( f 45.5#1.80 BTC 13 1/2" 055' } 10 3/4" Pump 42 bbls Mud Clean II with red dye. Pump 3 bbls 1 LOT#2 3352'MD 14.7 ppg emw water. Test lines to 2k psi Cmt to surf @ 520 bbls_ f.;3 Poetential Inj zone Pump 564 bbls 12 ppg cmt. Pump 5 bbls water to clear ' lines. Switch to rig pumps to displace w145 bbls 8.8 p mud. Floats heldUnsting. CIP Q 21:000 to"=5000'eed LOT#1 15.0 emw 1 hrs-R/u BJ for Cmt Job PJSM for Cmt Job-Tst Surf Lines 4000 Psi- OK 0.25 hrs-Repair BJ H2O Line(cement plug in line) 1 hrs-Mx& 10.2 ppg NaCLIKCI. Pump 30 Bbl 10PPG Spacer&Mx 3 Bbls Cmt-(Packing over/heating- S/dn&Observe) 2.25 hrs-Mx&Pump 126.5 Bbl Lead to Slurry wt 13.5 PPG-Follow w/52 Bbls Tail to Slurry Wt 15.8 PPG Shut/dn-Drop Plug& Pump 5 Bbls H2O-S/dn&Displace w/Rig Pump-Plug t• •'-•• ,e• Calculated Displacement-Press/up 1000 Psi(1900)&hold 5 Min- {, Bleed/off-Floats HeIdCIP=06 05 HrsNote Btm Shoe @ 8024'&Float Collar g 7938' 1C EXPRO 05 19 2011 n FIT#3 13.5 ppg emw �f� 13.5 goad combo plw 8024' 29.7#L80 BTC top/loam btn 9 718" 8021' ¢ ((. [' 7 5/8" 2¢ (02 j)B.T 5-1/2"17# x 7-5/8"29.7-39#; 2e} t �_><" t,{2 80 KSI Hyd Flex Lock Liner hanger wl 2¢ . [¢2 ZXP LT Packer 2¢. I j 'TOL 7892"MD,7888'TVD I 1.875"XN nipple @ 9057.14 2¢_ I [¢2 20.2¢ 1 ;3 1¢2 Baker Model 0 Pkr @ 9666'(9659'TVO) 2riPd. z. [¢ Re-entry guide . =. [ 2 Top Perforation (RDX) 9705 " `" ="j' - Bottom Perforation (6 SPF) 9724.85' 2e{ [¢2 (9698'9717' TVD) 2W. [02 2¢. [¢',_.. Top Perforation (RDX) 10008 1/7" -_.:. Bottom Perforation (6 SPF) 10049 1/6" NOTE: Bottom of re-entry guide after auto-release 1=. IN-- 110000 10040' TVD) will beat 9,705.22'.Total length of gun fish after 2¢: [¢2 auto-release is 352.93'. Top offish @ 10,238.07'. 2 4'" [¢2 Detonating bar on top of that @ 10,238.77'. 2¢, [¢2 20. ' [¢2 NOTE: Re-entry guide I.D.after gun release=2.063" tel: [¢2 No-Go of 1.56"falls with guns. 2 [¢2 PBTD 10565'DPM [¢2 Drill 2¢, [¢2 CBL EXPRO 05 19 2011 165 Quad combo Or 10680'es 2¢, [0'12.6#1,80 TCII 6 3/4" 10667' 4 1/2" Test to 4500 psi. Mix and pump 40 bbls sealbond sweep at 12 5ppg 672 sx 141.2 slurry Class G+1 2%BA-56,3%KCL, 5%%EC-1,.4% CD-32,.2%A-2, 2%R-3, 05%Static Free,1 ghs FP-6L.Yld 1.18 cu ft/sk, 15.8 ppg 4.951 gl H2O sk,3.32 pumping time.79.216 bbls water to mix. 9.82'markerjt @ 8324' Displace w 11.4 ppg mw. Landing collar 10591',Float collar @ 10633' Tagged @ 10565'DPM Csg shoe 10676' • • Buccaneer Alaska Operations, LLC Kenai Loop #1 Drilling Permit# 211 043 Completion Procedure Well Conditions • Zones have been perforated and tested • See current Wellbore Diagram (attached) • Well is filled with NaCI/KCI (±10.2 ppg) • Well is a straight hole. • Testing has been concluded Operations following well tests— Completion Procedure 1. Following well killing procedures, POOH and lay down TCP/DST assembly 2. Rig down and release all testing, EL and SL equipment. 3. Run 2 7/8" 6.5 ppf L80 modified 8rd tubing installing required completion hardware to include injection mandrel, SCSSV etc with control lines. • Chemical injection mandrel ±500' • 5k Baker SCSSV ±565' 4. Space out tubing, sting into packer and land hanger. Test all. 5. ND BOP, NU tree and test to 5000 psi. 6. Secure Well. Install retrievable tubing plug © ±100'. 7. Set BPV in the tubing hanger and ensure all valves on the tree are closed. Put tree cap in place. 8. Remove all valve handles, etc and send to storage for keeping along with ALL of the tree and equipment specification papers. Install fencing around well and well identification sign. 9. Rig down and move out drilling rig. • • • 10.Well completed and shut in. Operations shut down. Notify AOGCC and City of Kenai. 5.35.080 Shut-in._If a well has been drilled which is or can be made capable of producing gas or oil in commercial quantities but for which there is a lack of either a market at the well or of an available pipeline outlet in the field,said well may be suspended or shut in while the drilling and production permit issued hereunder is still in effect,and the drilling and operation permit shall remain effective,and is automatically continued,during such period or periods of suspension or shut-in.The permittee shall give written notice to the City of his or her intent to suspend or to shut in the well which notice shall present the reasons therefore and indicate the good faith attempts that were made in securing a market or providing for the transportation of the oil or gas.Said suspension or shut-in will be effective for one(I)year from the date of the notice to the City and may be renewed for additional one (1)year intervals upon review and public resolution by the City Council.During the suspension or shut-in the well shall be secured by fence, locks,or other security devices as approved by the City Manager.(Ords.508, 800) 11.Secure location and clean up as per agreements with surface land owners, City of Kenai, and AOGCC requirements. 12.Prep for surface production facility. • • S . Buccaneer Alaska, LLC Kenai Loop #1 Expro Test Equipment Layout Diagram Nuodro n 2-'3-PA TOW{tr-A-r R ristiRo i-ve-.11.;;AL 5-5re ftr, 1101717f.INTAI TANA Lire 77 [ 5Z3Z1V11:0 or +7=t- Page 1 of 1 Y . Close Alaska: Kenai gas flow estimate exceeds expectations c) \A -0 L\-S By OGJ editors HOUSTON,June 1 —CAOF potential at the Kenai Loop-1 well near Cannery Loop gas field is 33.2 MMcfd, much higher than expectations, said Buccaneer Energy Ltd., Sydney. The high AOFP demonstrates the excellent permeability and porosity of the two Upper Tyonek zones perforated and tested,Buccaneer said. The long-term deliverable production rate from the well has been estimated as 6-8 MMcfd which is expected to hold for 2 years and will facilitate a favorable gas sales contract.The expected floor price of gas in south- central Alaska is $7/Mcf. Upside potential exists in the area from 14 other zones with a combined 423 ft of gross pay not yet tested. Buccaneer's contiguous block in the area is in excess of 8,900 acres. The company is finalizing a development program for the Kenai Loop project that will include drilling Kenai Loop-2 well, initiating production, shooting seismic, and further drilling. To access this Article, go to: http://www.ogj.com/ogj/en-us/index/article-tools-template.articles.oil-gas-journal.exploration- development-2.area-drilling.20100.june-2011.alaska_-kenai gas.html http://www.ogj.com/index/article-tools-template/ printArticle/articles/oil-gas-journal/explor... 6/2/2011 • • Colombie, Jody J (DOA) From: Seamount, Dan T (DOA) Sent: Wednesday, June 01, 2011 12:56 PM To: Aubert, Winton G (DOA); Ballantine, Tab A(LAW); Birnbaum, Alan J (LAW); Colombie, Jody J (DOA); Davies, Stephen F (DOA); Foerster, Catherine P (DOA); Maunder, Thomas E (DOA); Norman, John K (DOA); Regg, James B (DOA); Roby, David S (DOA); Saltmarsh, Arthur C (DOA); Schwartz, Guy L (DOA) Subject: FW: Buccaneer Energy- Kenai Loop#1 Well Final Testing Results Exceed Expectations-ASX Release . . r From: Tim Bradner [mailto:tim.bradner @alaskajournal.com] Sent: Wednesday, June 01, 2011 11:43 AM To: Seamount, Dan T(DOA) Subject: FW: Buccaneer Energy - Kenai Loop #1 Well Final Testing Results Exceed Expectations -ASX Release Forwarded Message From: Dean Gallegos <dg @hg3.com.au> Date: Wed, 01 Jun 2011 12:36:07 +1000 To: <tim.bradner @alaskajournal.com> Subject: Buccaneer Energy - Kenai Loop #1 Well Final Testing Results Exceed Expectations - ASX Release View Online <http://emarketing.imobius.com.au/ch/27270/2ddw2ph/1075554/882168Ymc.html> ASX RELEASE — 1 JUNE 2011 KENAI LOOP # 1 WELL — FINAL TESTING RESULTS EXCEED EXPECTATIONS Buccaneer Energy Limited ("Buccaneer"or"the Company") is pleased to provide the following the initial results from flow testing operations at its 100% owned Kenai Loop # 1 well. Highlights • Successfully completed 4 point flow test for 2 zones totalling 87'; • Absolute Open Flow Potential ("AOFP") calculated as 33.2 million cubic feet per day (4,150 BOEPD)1 from 87' gross pay tested; • Long term production rate targeted at 6 - 8 MMCFD (750 - 1000 BOEPD)1; • Net revenue of US$1.05 million per month at 7.0 MMCFD, US$12.6 million per annum; • 14 zones (423' gross pay) remain to be tested. 1 Gas to Oil Ratio of 8:1 A flow test over 4 different choke sizes, a 4 point test, has been successfully completed. This test includes the measurement of pressures which allows for the calculation of the AOFP. The AOFP estimates the well's flow rate without a choke. The AOFP was calculated as 33.2 million cubic feet per day ("MMCFD") which is significantly higher than the expectations. The high AOFP demonstrates the excellent permeability and porosity of the 2 zones perforated and tested. The long term deliverable production rate from the well has been estimated as 6 - 8 MMCFD (750 - 1000 BOEPD). This steady deliverable production rate is anticipated for approximately 2 years and will facilitate a favourable gas sales contract. Based on the average production rate of 7.0 MMCFD and the expected floor price of gas in south central Alaska of US$7.00 / MCF this would result in net revenue to the Company of approximately US$1.05 million per month (US$12.6 million per annum). The gas price in recent contracts has a floor of US$7.00 / MCF and cap of US$10.00 / MCF. 1 . • Net revenue is after all royalties, production taxes and expected normal operational costs and amount to "US$2.00 / MCF. Fixed royalties account for approximately 65% of these costs. An upside potential exists in the area from the remaining 14 zones (423'of gross pay) that have not yet been tested. Buccaneer's contiguous block in the area is in excess of 8,900 acres. An internal estimate of recoverable reserves is currently being finalised after which the Company will engage a third party engineer to complete a reserve report. Kenai Loop Development Program The Company is in the process of finalising a development program for the Kenai Loop project which will include: • Drilling Kenai Loop # 2 well; • Commencement of production; • Acquisition of new seismic; and • Additional drilling beyond Kenai Loop # 2 well Kenai Loop # 1 Previous Results In the initial phase of the testing program, the Kenai Loop # 1 has successfully tested gas to the surface at a rate of 10 million cubic feet per day on a 20/64"choke with a FTP (flowing tubing pressure) of 3,495 psi. The Company has up to 16 zones totalling 510' of gross pay identified by logs as test candidates in the Beluga and Upper Tyonek Formations. As the rig needed to be released back to Marathon on 1 June 2011, 2 of the 3 high graded zones in the Upper Tyonek Formation were chosen to be perforated and tested. The 2 zones total 87'of gross pay were described as follows: Zone 1 has an upper sand of 37'of gross pay which logs have confirmed as being quality reservoir with high porosity and good permeability. This upper sand package had a "gas kick"during drilling operations. There is an additional 12'of lower sand which is a lesser quality sand, but remains attractive. Only the upper portion of this zone is included in the testing program. Zone 2 is an additional massive sandstone zone of approximately 50' of gross pay which logs indicate has good porosity and permeability. Depending on rig availability a second well is planned for the third quarter 2011. The Company is in the progress of formulating a development program for the field, including a production schedule, beyond the initially anticipated 2-3 wells. Background: The closest wells to the Company's Kenai Loop # 1 well are the Cannery Loop # 3 and # 4 wells located in the Cannery Loop Field, which were drilled from the same surface location approximately 6,325 feet (1.2 miles) from the Kenai Loop # 1 well location. The Cannery Loop # 3 and # 4 wells have produced a combined 25.5 BCF from pay zones whose equivalents are expected to be present in the Kenai Loop # 1 well, but separated from the Cannery Loop Field by geological deposition rather than fault. Drilling to date in the Kenai Loop # 1 well has confirmed that the formations encountered to date are likely separated from the Field. There were 11 wells in the adjacent Cannery Loop Field which produced 175 BCF (21.9 MMBOE) One well produced from the Sterling Formation which is not one a target in Kenai Loop # 1 well, the other 10 wells produced from the Beluga and Upper Tyonek. The Upper Tyonek is the primary target Formation of the Kenai Loop #1 well. For further information please contact Dean Gallegos on 0416 220 007 or 02 9233 2520, alternatively visit the Company's website at www.buccenergy.com <http://emarketing.imobius.com.au/ch/27270/2ddw2Ph/1088485/8821612ztq.html> . Yours faithfully BUCCANEER ENERGY LIMITED 2 Mr Dean Gallegos Director Competent Person Statement Information pertaining to the Kenai Loop project contained in this report were compiled by Gary Rinehart, BS in Geology from University of Oklahoma and who has had more than 35 years experience in petroleum geology. Mr Rinehart has consented to the inclusion in this report of the technical matters and information herein in the form and context in which it appears. Figure 1 - Flaring Gas during flow testing at the Kenai Loop # 1 well Figure 2 - Aerial view of the Kenai Loop Drilling location Click here <http://emarketing.imobius.com.au/ch/27270/2ddw2ph/1437645/882164wyc.Pdf> to view a map of the Kenai Loop Project www.buccenergy.com Level 9, 25 Bligh Street SYDNEY NSW 2000, Australia T: +61 2 9233 2520 F: +61 2 9233 2530 ABN: 63 125 670 733 952 Echo Lane,Suite 420, Houston,Texas 77024, USA T: +1713 468 1678 F: +1713 468 3717 You are receiving this email because you are a customer or have had a reason to provide us with your details in the past. If you wish to unsubscribe from future mailings, please click the unsubscribe link below This email was sent by Dean Gallegos, Buccaneer Energy, Level 9, 25 Bligh Street, Sydney,Australia 2000 to tim.bradner @alaskajournal.com Unsubscribe<http://emarketing.imobius.com.au/forms/u/8e922af/27270/17848105671f000892/247275.html> <http://www.imobius.com.au> End of Forwarded Message 3 • • CANRIG 301 EAST 92"°AVENUE,SUITE 2.ANCHORAGE,ALASKA 99515.(907)561-2465.FAX(907)561-2474 May 31, 2011 A0511001 Mr. Howard Okland State of Alaska Oil and Gas Conservation Commission 333 West 7th Avenue Suite 100 Anchorage, AK 99501 Re: (Confidential) Dry Sample Transmittal, Buccaneer Alaska, LLC OC Kenai Loop #1, Kenai Borough, Alaska b - 133 - �,a SYS`- no Dear Howard: Enclosed with this letter are the State set of dry samples from the recently drilled Buccaneer Alaska LLC Kenai Loop #1 well. The following samples are included per Buccaneer instructions. 2L-306 Dry Sample Sets(Set C) Depths (in feet) Box#1 3,075-4,120 Box#2 4,120- 5,180 Box#3 5,180—6,160 Box#4 6,160-7,140 Box#5 7,140-8,120 Box#6 8,120-9,060 Box#7 9,060-9,580 Box#8 9,580-10,190 Box#9 10,190- . 88 et Cooke$o If I can be of any future assistance, please do not hesitate to call me at your convenience at (907) 561-2465. Most sincerely, James R. Carson Alaska Division Manager Canrig Drilling Technology, Ltd. eived /(L1i,G ith td,,t - Signature Title Date Page 1 of 1 • • Aubert, Winton G (DOA) Subject: FW: Buccaneer-Kenai Loop#1 - Permit#211-043 Week Ending May 15,2011 From: Stephen Hennigan [mailto:shennigan@peiinc.com] Sent: Monday, May 16, 2011 9:28 AM To: Aubert,Winton G(DOA); Saltmarsh,Arthur C(DOA) Cc: Andy Pike;Jim Windstrup; Pete Dickinson; Pete Berga Subject: RE: Buccaneer- Kenai Loop#1 -Permit# 211-043 Week Ending May 15, 2011 Genitierrier May 09-Drill f/1.0531'-105W. Circ. Lip break. nrill 11:.16:30' dean. Perform short trip. Circ. May 10-C&C. Perform another short trip. Circ clean. POOH. Test BOPe. RU leggini,:,,7 equipment. May Ii Fin RIH. Tagged @ 9423) POOH. PU bit.and Bli-L4 and Tift Tag 9431 , Wash and ream. Rift Circ clean. POOH to casing shoe for short trft . RIH. May 12- bridge and work clean p, 10005' Fin in hole, Circ ciean. POOH. RU logging tools. and iog fr 105751 Stuck (Ii"i)9473'. Left caliper arm in hole. Check stack. May IS-RIF!w/concave mill to TO tagging a few the spots. CifC clean, POOH. FIR logs. Tag 9431'. Log out of hole. lei—Fin jog out of hcR RIR WI cteanoilt H.A, Reameri 9400 area_ RIR. Tag @ 101378' (2' NHL p0(31-1_ RU EL, stop 0 9510, POOH and RI) Et_ May 15-MU clean out BRA and MK Tag 0 9837' Ream thrii. P.M to td & WaSh last 2'fill. Circ P001-i_ Po.)to run Li prociuditiion Liner has subsequent,/been run and cemented. Petroleum Engineers, Inc, 5/16/2011 Page 1 of 1 • a Aubert, Winton G (DOA) From: Stephen Hennigan [shennigan @peiinc.com] Sent: Monday, May 09,2011 1:39 PM To: Aubert,Winton G (DOA);Saltmarsh,Arthur C (DOA) Cc: Andy Rike;Jim Windstrup; Pete Dickinson; Pete Berga Subject: Buccaneer-Kenai Loop#1 -Permit#211-043 Week Ending May 8, 2011 Gentlemen May 02-Cont PU 4" DP and stand back. RU and test BOPe. Annular to 250/2500 and remainder to 250/4000. Test 7 5/8"to 2500 psi. PU BHA and TIH. Drilling shoe track. May 03-Fin drill shoe track and cmt to 8050'. Drill 20'of new formation to 8070'. arc clean. Perform FIT to 13.5 ppg emw. Drill to 8679'. May 04-Drill to 9222'. May 05—Drill to 9316'. Perform wiper trip. Drill to 9593'. May 06—Drill to 9720'. Start raising wt from 10.0 to 10.4 ppg. Circ BU and gas went to 2050 u and back down to 100u. Check for flow. Well flowing. Circ thru gas buster and build wt to 11.2. Drill to 9734'. May 07—Circ BU. Gas went up to 1260 then down to 30-40u. Drill to 9909'. arc BU. Make 11 std wiper trip. Circ BU. Gas 214u. Drill to 10138'. Incr mw to 11.4 ppg. May 08—Control drill to 10531' (BGG 30-40u). (Call for permission to drill deeper-granted) (337)984-2603 (337)849-5345(c) Petroleum Engineers, inc. 5/9/2011 Page 1 of 1 • • Aubert, Winton G (DOA) From: Stephen Hennigan[shennigan @peiinc.com] Sent: Monday, May 02,2011 6:47 AM To: Aubert,Winton G(DOA);Saltmarsh,Arthur C(DOA) Cc: Andy Rike; Pete Berga;Jim Wndstrup Subject: RE: Buccaneer-Kenai Loop#1 -Permit#211-043 Week Ending May 1,2011 4/25- Drill to 6581'. Short trip. Drill to 7135'. 4/26- Drill to 8000'. 4/27- Circ up samples. Short trip. Drill to 8050'. Circ up samples. POOH. RU to log. 4/28- Run eline logs. Test BOPe. 4/29- TIH to 7963'. Wash& ream to bottom of 8050'. Circ sweep. POOH. Run CBL on surface casing. RU to run 7 5/8"intermediate casing. 4/30- Run casing to 8024'and land. RU BJ and cmt w/126.5 bbl lead @ 13.5ppg and 52 bbls tail 15.8 ppg. Displaced with rig pumps. Bumped plug w/1000psi. Floats held. 5/1- Set pack off and pressure test to 3800psi. LD 5°drillpipe. Change handling tools. PU 4"drillpipe while TIH. Please let me know if you need anything else. Petroleum En fn rr , f ., 5/2/2011 Page 1 of 1 • • Aubert, Winton G (DOA) From: Pete Berga[pberga©allamericanoilfield.com] Sent: Monday,April 25,2011 10:22 AM To: Aubert,Winton G (DOA) Subject: Kenai Loop#1 Permit#211043 Intermediate csg depth Winton--- We are permitted to set 7 5/8"at 8000'and/tvd. Buccaneer is probably going to set it short(between r is no interference with the shoe of this csg and the liner lap with potential 7500' and 8000')so there g P pay. I think for setting it shallow there is no paper work required? Let me know what you expect from us. My phone is 573-201-3861. Pete Berga(ex marathon)—I am consulting to Buccaneer on this project. 4/25/2011 Page 1 of 1 Aubert, Winton G (DOA) From: Stephen Hennigan [shennggan @peiinc.com] Sent: Monday,April 25,2011 8:50 AM To: Aubert,Winton G (DOA);Saltmarsh,Arthur C (DOA) Cc: Andy Rike;Pete Berga; Jim Wndstrup Subject: RE: Buccaneer-Kenai Loop#1 -Permit#211-043 Week Ending April 24, 2011 Gentlemen: 4/18- Perform short trip to HVVDP. TIH. Circ clean. POOH. RU E-line and log. RD E-line. RU casing tools. Start running 10 s/+"casing. 4/19- Landed L80 45.5 BTC csg @ 3057'. Rlh w/stab-in system. Test lines. Cement w/564bbls 12.0 ppg cment. Cement to surface @520bbIs. Floats held. POOH. ND diverter. Clean pits. 4/20- Cont ND and cleaning while WOC. Rough cut 10'/.". Remove starter head. Prep&cut 16"and performal final cut on 10 g/" Install wellhead. Test to 1800 psi for 10 min. Begin Nu BOPe. 4121- Cont NU BOPe. RU test equipment and test BOPe to 250/4000 psi, hydrii to 250/2500psi (witness by AOGCC). Perform casing test to 2500 psi. 4/22- RIH w/BHA and test. MWD failed Replaced. RIH to 2960'&tagged cmt. Drill cement and shoe track to 3057'. Ream rathole cmt to 3075'. Drill to 3097' Perform LOT to 15.0 ppg emw. Drill to 3352'. Pull to shoe. Perform OH LOT to 14.7 ppg emw. Drill to 3700'. 4/23- Drill to 4490'. Perform short trip. Drill to 5100'. 4/24- Drill to 6310'. Please let me know if you need anything else. Petroleum ` in , Inc, 4/25/2011 S etrO1euffl f SUBS(' w — t7 L LI/ dome Arlyerticmg 5iibscriptrbns PublIcat`ons http://www.petroleumnews.com/pnads/740424638.shtml Buccaneer spuds Kenai Loop No. 1 VI �. ``\ Print this story Email it to an associate. Buccaneer Alaska Operations LLC spud its Kenai Loop No. 1 well at 3 p.m. on April 15 using the Glacier Drilling Rig No. 1,the company announced on April 18. The well, north of the Cannery Loop unit and the city of Kenai, is the first in Alaska for the local subsidiary of the Australian-independent Buccaneer Energy Ltd. Buccaneer said drilling had reached the point designated for surface casing at 3,075 feet and preparations were under way to log the surface interval. Buccaneer intends to drill the well to a total depth of 10,500 feet to reach multiple targets, starting with a potential zone in the Beluga formation. The company expects drilling to last for another 20 days. Multiple pay zones possible Buccaneer began collecting the leases in the prospect in mid 2010 and now holds some 7,734 acres of state, Cook Inlet Region Inc. and Alaska Mental Health Land Trust leases. Based on control wells, 200 miles of 2-D seismic and surrounding geology, Buccaneer believes the field holds"multiple stacked pay zone possibilities between 5,000 and 10,000 feet," estimating reserves between 35 billion and 78 billion cubic feet and initial production rates between 5 million and 10 million cubic feet per day per well. Kenai Loop No. 1 is the second exploration well in the Cook Inlet basin this year. Local independent NordAq Energy Inc. drilled the onshore Shadura No. 1 in mid-February. Buccaneer drilled the well just slightly more than one year after arriving in Alaska. —Eric Lidji Page 1 of 1 • Aubert, Winton G (DOA) From: Stephen Hennigan [shennigan @peiinc.com] Sent: Monday,Apnl 18,2011 1:36 PM To: Aubert,Winton G(DOA); Saltmarsh,Arthur C (DOA) Cc: Andy Rike Subject: Buccaneer-Kenai Loop#1 -Permit#211-043 Week Ending April 17, 2011 Gentlemen Below is a summary of Operations 4/15— Finish rig audit. Test diverter&related w/AOGCC. Stage BHA. Received permit from AOGCC. MU BHA. / g / g P Wash conductor f/90'to 138-. Spud weii to 2100 hrs 4/14/2011. Driii f/138'to 438'. 4/16- Drill 13 1/2"hole f 438'to 2055'. 4/17- - Drill 13 1/2" hole ti 2055'to 3075` .CBU. Pump sweep. Prepare to short trip. Since we have logged and are running pipe. If there is any additional information or a different format you would like, please let us know. Petroleum Engineers, Inc. 4/18/2011 6 • S c1130E gi j ALAsEA SEAN PARNELL, GOVERNOR ALASKA OIL AND GAS 333 W.7th AVENUE,SUITE 100 CONSERVATION CommassION ANCHORAGE,ALASKA 99501-3539 PHONE (907)279-1433 E. A. Rike FAX (907)276-7542 EVP - Operations Buccaneer Alaska Operations, LLC 952 Echo Lane, Suite 420 Houston, TX 77024 Re: Exploratory Field, Exploratory Pool, Kenai Loop #1 Buccaneer Alaska Operations, LLC Permit No: 211-043 Surface Location: 1888' FNL, 1037' FWL, SEC. 33, TO6N, R11W, SM Bottomhole Location: 1888' FNL, 1037' FWL, SEC. 33, TO6N, R11W SM Dear Mr. Rike: Enclosed is the approved application for permit to drill the above referenced exploration well. The permit is approved subject to full compliance with 20 AAC 25.055. Approval to perforate and produce is contingent upon issuance of a conservation order approving a spacing exception. Buccaneer Alaska Operations, LLC assumes the liability of any protest to the spacing exception that may occur. This permit to drill does not exempt you from obtaining additional permits or approvals 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. 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, itle 20, Chapter 25 of the Alaska Administrative Code, or a Commission order, or the : and conditions of this permit may result in the revocation or suspension of the p: it. 4/,", i 0 4 i : oner DATED this /4day of April, 2011. cc: Department of Fish 8v Game, Habitat Section w/o encl. (via e-mail) Department of Environmental Conservation w/o encl. (via e-mail) ECEI i STATE OF ALASKA 14GAr ALIA OIL AND GAS CONSERVATION COMM•N 01 k,pi¢,\R 9 1 Nil �� Lott PERMIT TO DRILL 20 AAC 25.005 ( Qls Cone_P° la.Type of Work: 1 b.Proposed Well Class: Development-Oil ❑ Service- Winj El Single Zone ❑ c. peci i well is propose. or: Drill SI Redrill ❑ Stratigraphic Test ❑ Development-Gas❑ Service-Supply ❑ Multiple Zone ❑ Coalbed Gas nCtiaWirates ❑ Re-entry ❑ Exploratory(Gas) 0 Service- WAG ❑ Service-Disp ❑ Shale Gas 1:1 2.Operator Name: 5. Bond: Blanket 0 Single Well ❑ 11.Well Name and Number: Buccaneer Alaska Operations,LLC Bond No. 13,Q0e.f0 4 f m y/ism Kenai Loop#1 3.Address: 6.Proposed Depth: 12.Field/Pool(s): 952 Echo Lane,Suite 420,Houston,Texas 77024 MD: 10,600 TVD: 10,600 4a. Location of Well(Govemmental Section): 7.Property Designation(Lease Number): Kenai Pennisula Exploration Surface: 1888'FNL 1037'FWL Sec 33 TO6N R11W SM MHT 9300082 Top of Productive Horizon: 8.Land Use Permit: 13.Approximate Spud Date: 1888'FNL 1037'FWL Sec 33 TO6N R11W SM City of Kenai,Conditional Use Permit 7-Apr-11 Total Depth: 9.Acres in Property: 14.Distance to Nearest Property: 1888'FNL 1037'FWL Sec 33 TO6N R11W SM 1267.60 1888'FNL 1037'FWL 4b.Location of Well(State Base Plane Coordinates-NAD 27): 10.KB Elevation above I 155 feet 15.Distance to Nearest Well Open Surface: x- 279518.13 y- 2402268.55 Zone- 4 GL Elevation above 134 feet to Same Pool: na 16.Deviated wells: Kickoff depth: feet 17.Maximum Anticipated s ures in psig(see 20 AAC 25.035) Maximum Hole Angle: degrees Downhole: 80 Surface: 7 18.Casing Program: Specifications Top - Settiii -Depth - Bottom Cement Quantity,c.f.or sacks Hole Casing Weight Gra Coupling Length MD TVD MD TVD (including stage data) N/A 16 84 welded R3 0 0 100 100 Driven 13 1/2 10 3/4 45.5# K-55 BTC R3 0 0 3000 3000±950 sx"I"@ 12.0 ppg i 9 7/8 7 5/8 29.7# L-80 BTC R3 0 0 8000 8000 Ld±370 sx"G"/13.5#-TL±200sx/15.8# 6 3/4 4 1/2 12.6# L-80 TC-ll R3 7700 7700 10600 10600±300 sx"G"@ 13.5 ppg 19. PRESENT WELL CONDITION SUMMARY(To be completed for Redrill and Re-Entry Operations) Total Depth MD(ft): Total Depth TVD(ft): Plugs(measured): Effect.Depth MD(ft): Effect.Depth TVD(ft): Junk(measured): Casing Length Size Cement Volume MD TVD Conductor/Structural Surface Intermediate Production Liner Perforation Depth MD(ft): Perforation Depth TVD(ft): 20. Attachments: Property Plat ig BOP Sketch s Drilling Program 0 Time v.Depth Plot 0 Shallow Hazard Analysis Diverter Sketch 0 Seabed Report ❑ Drilling Fluid Program ig 20 AAC 25.050 requirements 0 21. Verbal Approval: Commission Representative: Date (//i ■ 22. I hereby certify that the foregoing is true and correct. Contact. 1/ er,J A)/C� fi/7 33-2$4,-s 356• Printed Name ° , Title U/��yo_'J aIT,c Signature ! / �/.l 9 ti, -, r,,x7p,- P hone ��3.�A' ' / �0°7�' Date ,//�"2f 2�i ( 7iG/� Commission se Only Permit to Drill A I Number: Permit Apt r- 11 See cover letter for other q Number: //Q. 50/3�ao6s9cso/0o Date: L�� requirements. Conditions of approval: If box is checked,well may not be used to explore for,test,or produce coalbed m ane,gas hydrates,or gas contained in shales: [17f Other: Samples req'd: Yes No El Mud log req'd: Yes [t/rNo ❑ TeSi- Bo I C tO O�� � . H2S measures: Yes ❑ Nod Directional svy req'd: Yes [v'No ❑ 40 ;/ PROVED BY THE COMMISSION DATE: 4 u /4 /I ,COMMISSIONER ORIGINAL Form 10-401(Revised 7/2009) This permit is valid for 24 months from the date of approval(20 AAC 25.006(g)) Submit in Duplicate BUCCANEER ! ' A A 5 K A March 22,2011 ``q4p RECE1V �{ E, .`3 M` *0154 ►Go trn'S Mr.Daniel Seamount, Chair Nric00140 Alaska Oil and Gas Conservation Commission 333 West 7th Avenue, Suite 100 Anchorage,AK 99501 RE: Application for Permit to Drill: Kenai Loop#1 Dear Mr. Seamount, Buccaneer Alaska Operations,LLC hereby applies for a Permit to Drill an onshore gas exploration well near Kenai on the Kenai Peninsula. Buccaneer plans to spud the Kenai Loop#1 approximately April 10th Buccaneer plans to use Marathon Glacier#1 Rig to drill this well and complete it for testing. If the well test results from the Tyonek formation are sufficiently encouraging,the well will be placed on long-term , production. If not,the well will be plugged back to the Beluga formation and be placed in long-term production as a gas producer. Please find attached information as required by 20 AAC 25.005 (a)and(c)for your review. Pertinent information attached to this application includes the following: 1) Form 10-401 Application for Permit to Drill 2) A plat showing the surface location of the well 3) General Prognosis with Drilling Area Risks and Waste Disposal 4) Summary Drilling Program 5) Drilling Time vs. Depth Plot 6) Proposed Kenai Loop#1 Wellbore Diagram 7) Plan Plot 8) MASP Calculations 9) Casing Properties and Design Factors 10) Diagrams and Descriptions of the BOP Equipment to be used 11) Drilling Fluid Program 12) Cementing Program 13) City of Kenai Drilling Permit 14) Map to well site 952 Echo Lane,Suite 420,Houston,TX 77024 Office: (713)468-1678 Fax: (713)468-3717 i I Mr.Daniel Seamount,Chair Alaska Oil and Gas Conservation Commission March 22,2011,Page 2 The following are Buccaneer's designated contacts for reporting responsibilities to the Commission: 1) Completion Report E.A. Rike,Vice President of Operations (20 AAC 25.070) 713-468-1678 2) Geologic Data and Logs Allen Huckabay,Vice President Exploration&Development (20 AAC 25.071) 713-468-1678 2t 913 Z/II If you have any questions or require additional information,please contact me at or Allen Huckabay at 713- 468-1678. BUCCANEER ALASKA OPERATIONS,LLC /7/ E.A.Ri' e Executive Vice President of Operations Enclosures Cc: Allen Huckabay—Buccaneer Alaska Operations,LLC 952 Echo Lane,Suite 420,Houston,TX 77024 Office: (713)468-1678 Fax: (713)468-3717 III I 0 • CITY OF KENAI SEC 29 SECC 29 I I I I SEC 28 1/4 SEC 32111 -C-33 :�I 0 SECTION LINE NOT TO SCALE SEC 33 I I I I II w co I I i I U L co O W I FO O 3I� 0 O d 2 3 1- w c:=I Io O CITY OF KENAI 0 z Z I CO Iz .e b Z UNSUBDIVIDED w r G LL PORTION OF II O SEC 33 T6N R11 W z co I 't J H FF 24'WIDE ACCESS ROAD , / U P.4 I II fn Li., • N 0 1 r 300' 't / I M N 1 1037' ® OR LL PN] 1600' FWL s F.G92.5 16 ;I .I w y s \ Io/ ' ��4*- � BUCCANEER 0 I � o KENAI PAD g ". • I OI I I Off' y 0 1 / ,, O ri I If •cf I i W— -* • I-- / / CITY OF KENAI 11 TRACT A-1-A V I�I I KENAI LOOP NO.1 AS STAKED II Q KN-0970051 V41 SURFACE LOCATION NAD27 ASP ZONE 4 SEC 33 T6N R11 W II GRID N:2402268.55 I I. I I !__—"/ GRID UDE:60°34' 1 LATITUDE:60°34'11.4925"N LONGITUDE:151°13'32.2128"W I ELEV.92.5'NAVD88 1• 1037'FWL 1 I I I 1888'FNL 1 : I I • SECTION 33 TO6N R11 W SM 1 / I I 11 P 1 1.BASIS OF HORIZONTAL AND VERTICAL CONTROL WAS DETERMINED BY AN NGS OPUS SOLUTION FROM CORS BASE ```ANI�1 11 STATIONS"KEN1 PID AF9548","TSEA RID A10952"AND"ZAN1 PID .• OF q 1I DE9153" OBSERVED AUGUST 17,2007 FOR MCI CONTROL STATION \ �Q'c .•.•'••x...10 I1,• KERR:ALASKA STATE PLANE NAD 83 ZONE 4 EPOCH 2003 DATUM `�. N:2367475.381 E: 1409643.183 * 4 g'�,,��\ ELEVATION: 133.963 GEOID 06 NAVD88 DATUM NORTH % >d�11�'f i COORDINATES CONVERTED FROM NAD27 TO ASP NAD83 ZONE4 US i .STAN A. MOLANE °jIIIIIIIIIIIIIIIIU"' , s 4637-S FEET USING CORPSCON6. �[� I r _ 2)NORTHWEST CORNER SEC.33 COORDINATE DETERMINED FROM SCALE ,/. ''o `�• •••`P„c�� DIRECT SURVEY TIE TO THE TO EXISTING BLM CORNERS 0 200 400 1) \\�����` RECOVERED AND NOT THE PROTRACTED SECTION CORNER I I VALUES. I FEET I PROJECT REVISION: 2 BUCCANEER ALASKA, LLC DATE: 02/02/11 2500 TANGLEWILDE AVE., SUITE 340 KENAI LOOP NO. 1 AS-STAKED SURFACE DRAWN BY: BGB HOUSTON, TX 77063 LOCATION DIAGRAM NAD 27 SCALE: 1”=200' PROJECT NO. 103082 ENGINEERING/MAPPING I SURVEYING/TESTING BOOK NO. - Consulting Inc P.O.BOX 468 SOLDOTNA,AN.99669 LOCATION SEC. 33 T6N RI1W SHEET VOICE:(907)283-4218 FAX:(907)283-3265 EMAIL:SAMCL4NE©MCLANECG.COM SEWARD MERIDIAN,ALASKA I OF 1 I I I j i I ____,IN PROJECT /AREA I I X I Nom- _t. I I I I SCALE * 32 ! [--�33 i , 1 UNSUBDIVIDED PORTION OF 04.1 r I I 0 100 200 SEC 33 TBN R11 W 3$ Q$� - '¢ •1 XI W I I I PEIET I ��,',, Z a '° , S I 5'1 0 10 I 13 t rAt --.�-V .- - 01 7 o I 1y 1� 1 O. T RQwswRKp1. --- I I I VICINITY MAP a I i CLEARING LIMIT 1 FT INSIDE w •• I 40'RADIUS(TYP.) `PROPERTY BOUNDARY I Scale 1" = 1/2 Mile I I N 88°23'34"E 830.16 / F f EDGE OF PAD , I I $ L.a I I I 24'WIDE ACCESS ROAD o o 1 131 I • � I I '^ § S 89°23'34"W 338.84 F.G.PAD 92.5 \ V L J U .— E2 I I rrl I o \ J o 1~ g - Yzce o I I�I I I PROPERTY AREA 1 ,�oF o \ Q Z U m I I Q I ' I I 226,064 SF-5.05 AC ��.��-�d 8 ro\ Q Q V w ' 3 °1 OOT\ w 0 U' e ro 1 I DRILL PAD o 1 w J 1 IZI IR c C..J F.G 92.5 ¢O 'F o slO,p\ Z — Z — ZN O W�— W - C I I�r l I Z 0 _... W j STAGING AREA $ \ („) Z I I Z w 1Q CLEAR AND GRUB ONLY \\ m se LLI I 711/ I �(/ 1 I 1 386.67 L EDGE OF PAD J 378.33 P. • I I ' S 89°23'34"W 500.0-0-1 00.00 I I I I �� /ill. I I I mia, -- 1 I y I SEC 33 MN R11W I I I 6 BARON PARK SUB FIRE ADDN TRACT A-1-A I Consulting Inc F I 1:2 I I KN-0970051 I I suavEr� M iw O I I I q I I W. RW. P / MOD PCWM I I/ FAA: 7)2:10r 1 I .M�AM�B. I I I g I DRAWN�B BOB I 1 SAM a E: � 1 I � I VERT.SCALE WA I I 1 SHEET 1 • • , Z n k 0> T ]L o a T. ti .o a o tE3 4 — F rt n — [I ..,..-1 0 t4 Pi a _ =— w p G P i o a HI : ,. 11 1:, 1 _. N3 ] . ' - 7". c,,- ',,, A N E LS I ..-E/ �:o .1" •—•—•— xn — zo E > I 1 E I§ .6Lg g i i E i , o — I I. I a A s E L. zQ ti o m = G j _ A C - 1 -i v as CT F A Z I Z = I 1 . • Buccaneer Alaska Operations,LLC. General Summary Well Name Kenai Loop#1 Permit to Drill No. Location Surface: 1888' FNL 1037'FWL Sec 33 T06N R11W SM Bottom Hole: 1888' FNL 1037' FWL Sec 33 T06N R11W SM Planned TD 10600'MD/TVD Directional Plan Straight Well Summary A 16"conductor will be driven to 100'and a cellar will be constructed and installed. Using water-based mud, approximately 3000' MD of 13 - 1/z' hole will be drilled as a straight hole to the first casing point at 3000' TVD where 10 - 3/4" surface casing will be set and cemented to surface. Then a 9 - 7/8" hole will be drilled to the intermediate casing point of 8000' MD/TVD, where 7 - 5/8" casing will be run and cemented back to 5000'.' Finally, 6 - 3/4" hole will be drilled to a planned TD of 10600' MD/TVD where 4 - 1/2" production casing will be set and cemented. ,J.1-electric logs indicate zones that are encouraging,the well will be tested and then sdspendgd. The lower portion of the intermediate hole and all of the production hole will be drilled in the Beluga and Tyonek Formations, which contain coal beds of varying thickness. The well will be drilled using PDC bits.These bits exhibit a reverse drilling break upon encountering coals,allowing time for these bits to work the coals as they distress and swell. Based on offsetting well information, there are no shallow gas or H2S risks anticipated for this well. KEY DEPTHS Depth 10 - 3/4" Surface Casing 3000'MD/3000'TVD Point 7 - 5/8" Intermediate 8000'MD/8000'TVD Casing Point 4- 1/2" Production Casing 10600'MD/ 10600'TVD Point TD TD 10600'MD/ 10600`TVD • Pore Pressure/Mud Program The well will be suspended using water-base mud with a weight of 9.0 to 9.4 ppg and adjusted as necessary while drilling to TD. Mud Logging Basic mud logging services will be provided from the surface casing depth to TD. Services will consist of cuttings description and construction of a lithology log. The mud loggers will tie their well monitoring system into a PVT system to help monitor fluid levels and system gains/losses. Logging Program Electric logging will be performed at each casing depth. If hydrocarbons are indicated to be potentially economic,then the testing phase will begin.. BOP Testing BOP testing will be conducted at least every seven days. AOGCC Field Inspectors will be notified 24 hours in advance of spud and all diverter/ BOP Tests. It will be noted on drilling report and on IADC sheet whether the test was witnessed by the AOGCC inspector or waived. Waste Disposal All solid waste, including drill cuttings, will be disposed of in a nearby permitted facility. Excess mud and fluids will be disposed of in a permitted facility as well. ycaneer Alaska Resources, LL110() Kenai Loop # 1 BlocWSec 33 6N 11W Wildcat 0 Kenai Peninsula 0 Alaska Ser#.: 211014 Time vs Depth Casing Size& Depth 0 Days vs MD ND vs Days Prod Csg/Inr 1,000 1 2,000 — 3,000 4,000 5,000 - 6,000 - 7,000 8,000 9,000 - 10,000 -- 11,000 — — 12,000 0 5 10 15 20 25 's 70 rs sc.'6% Sccaneer Alaska Resources, C Q Kenai Loop # 1 Block/Sec 33 6N 11W Wildcat 0 Kenai Peninsula 0 Alaska Ser#.:211014 FMTN. PP MW FG Comments/ CSC TOPS/ Dom, or or ppge) EVALUATION MD(1XQ. or CASING&HOLE SIZE USDW:' Est Rkb Air Gap 0' Wtr.Dpth 8.4 8.6 9.8 100'pen ' " p 4#X-56 Welded Drive 16 ROP/Gas log Cond/Drive to TD. 8.6 9.0 13.5 3000' 45.5#x55 BTC 13 1/2" 3000' 10 3/4"' 3000' Casing 1 3000' Top Sterling 5794' Top Beluga 8000' Casing 2 8619' Top tyonek 10600' TD Mud Logging: Manned: 2 sx every 30',3000'to TD EstTOC -:000 8.6 9.2 16.0 LWD 8000' 2¢, ! ! [IA 29.76 L80 BTC 9 7/8" 8000' ¢; ! ! [¢r" 7 5/8" 2¢. ! [02 2¢. ! ! [¢2 2¢, ! ! [¢2 2¢, ! ! [02 2¢. ! ! [¢2 2¢. I I [¢2 2¢. ! ! [¢2 8.6 9.4 16.5 LWD,Velocity 10600' 2¢ [¢:12.6#L80 TCII 6 3/4" 10600' 4 1/2" ■ Kenai Loop # 1, Kenai Peninsula, Alaska. Buccaneer Alaska Resources, LLC Directional '" S'%'_) 10 11 12 13 14 15 16 17 18 19 20 ■ ■ 16" =':)0. ! 'I i _ 1 ■■ 1000 ■ ■ MI Projected Mud -11■ 1111.11 @ I■L Weight in 2000 ■ ■■ ' - .I I ■ 1111 1 M■ i 3000 • ■■■■ III 10.75"©3000' Top Sterling ■ , 'I ' ■ Eaton Frac 4000 Grad ■ ■■■■ I ; M■\ ■ 1111 11 I N Formation . 5000 ■ ■■■>■ I I Iu P_� u�•_■ t Top Beluga ■■ .841 6 I' ; ® ; 111 s> 6000 ■ MEM I I ■ 0 7000 ■ MI MI I I ■ ■■■■ 111 ■ • 8000 Casing 2 ■■■.■_I 1, III in 7.625" IN 1 1 ■ Top tyonek II IM ■ 9000 ■■_ Mill 1 MI : ■ 10000 ■■ �EMI I I I Delta P(. ■■ III I ■ ■ ■■ 40.,6 in ■ 11000 in ■■ ■ 12000 ■■ -■■ ■ 0 2000 4000 6000 8000 10000 12000 14000 16000 • • 1 Emergency response Information 1.1 Directions to Location Method Directions Air Latitude: 60°34'09.4406"N Longitude: 151°13'40.2405"W NAD 83 Ground A 1.2 Rig Contact Numbers Glacier 1 Phone List Co.Man: (832)531-6901 Tool Pusher: (832)531-6902 Mud Engr: (832)531-6903 Directional: (832)531-6904 Expediter: (832)531-6905 Rig Fax: (832)531-6906 CM Backup: (832)531-6907 TP Backup: (832)531-6908 1.3 Emergency Response Contact Numbers Company Contact Numbers Position Office Cell Co.Man: (832)531-6901 Tool Pusher: (832)531-6902 Co.Supervisor (713)703-5157 Outside Emergency Response Response Service Location Contact Phone Ambulance Kenai/Soldotna,AK (907)262-4404 Fire Kenai/Soldotna,AK (907)262-4792 Hospital Kenai/Soldotna,AK Central Peninsula General Hospital (907)262-4404 Police Kenai/Soldotna,AK Kenai (907)283-7879 Solldotna (907)262-4455 Alaska State (907)262-4453 Spill&Contamination Alaska Alska State Spill Reporting National Response Center Oil/Toxic Spills,etc (800)424-8802 Coast Guard (800)479-5555 AOGCC (907)793-1226 1.4 Company Emergency Response Name Position Office Mobile Andy Rike Vice President Opns (713)703-5157 Steve Hennigan Drilling Engineer 337-849-5345 Pete Dickinson Operation Manager 907-230-6542 Larry Driskill Drilling Supervisor 870-421-1650 Larry McAllister Drilling supervisor 907-395-0305 907-240-6244 • 2 Regulatory Agency Contacts Agency Office Phone Contact 24 hr AOGCC (907)793-1226 3 Regulatory Compliance g rY p Regulation New Requirement 20 AAC 25 BOP testing every 7 days / 24hr notice required 4 Drilling Program Summary 4.1 General Well data Name Kenai Loop#1 Lease/Lic MHT 9300082 Surface Lcn 1888'FNL 1037'FWL Sec 33 TO6N R11 W SM WBS code Slt/Pad new pad Field Kenai Pennisula Exploration Spud Date(est) 04/07/11 KB(above MSL) 155 County/Prov Kenai API No. GL(above MSL) 134 State AK Permit No. Perm Datum KB Total MD 10,600 Well Class Expl WD na Total TVD 10,600 Drlg Contractro Glacier Drlg USDW unknown Rig Name Glacier Rig 1 4.2 Working Interest Owners Company Working Interest Address Primary Phone Fax Buccaneer 60.00% 952 Echo Lane,Suite 420,Houston,Texas 77024 Sandstone 30.00% Megashine 10.00% • • 4.3 Geologic Program Summary NAD 27 NAD 83 KENAI LOOP NO.1 AS STAKED KENAI LOOP NO.1 WELL SURFACE LOCATION c AS-STAKED SURFACE NAD27 ASP ZONE 4 LOCATION SE GRID N;2402268.5.6 NAD83 ASP ZONE 4 GRID E:219518.13 GRID f42402030.91 LATITUDE;60`34'11,4925'N GRID E:1419538.45 LONGITUDE:151.'13'32.2128'W LATITUDE;60'34'09.4406'N ELEV.92.5'NAV088 t OIGITUO:151'13'40.2405'W 1037'FWL ELEV,92,5'NAVD88 1888'FNL 1037'FWL SECTION 33 TO6N R11 W SM 1888'FNL SECTION 33 TO6N R11 W SM NAD 27;Alaska Zone 4 X Co-ord. Y Co-ord. Surface Location Co-ordinates 279518' 2402268' Bottom Hole Location co-ordinates 279518' 2402268' Pore Pore Pressure Pressure Targets M.D.(ft) T.V.D.(ft) x Co-ord. Y Co-ord. (psi)est (ppg)est Top Sterling 3000 3000 279518' 2402268' 8.4 Top Beluga 5794 5794 279518' 2402268' 8.6 Top Tyonek 8619 8619 279518' 2402268' 8.6 Total Depth 10,600' 10600 279518' 2402268' 8.6 4.4 Formation Evaluation Summary Depth(MD ft) Open-Hole Logs Sidewall Cores Mud Logging Base of 16"DRIVE GR,Resistivity,SP, None pipe-±3000' Density, Neutron, (bottom of 13.5" Sonic hole) Caliper ±3000-±8000'in GR, Resistivity,SP, Optional: Basic with GCA, 9.875" hole Density, Neutron, Possibly 30 SWC shale density, Sonic cores temp,sample Caliper collection (10') Optional:Spectral GR, pressure testing tool ±8000'to TD of GR, Resistivity,SP, Optional: Basic with GCA, ±10,600'in 6.75" Density, Neutron, Possibly 30 SWC shale density, hole Sonic cores temp,sample Caliper collection (10') Optional:Spectral GR, Pressure testing tool,and a resistivity based imaging tool • • 4.5 Summary of Potential Drilling Hazards Hazard Event Depth Discussion Precaustions [interval Balling Surface Maintain high gpm/rpm to keep bit/BHA clean Performe aditional circulating times Boulders/rocks Surface Control penetration,add Icm,high vis sweeps Monitor for loss of rtns Possible depleted zones Intm Extent of nearest field production is unknown. Add Icm Monitor for loss of rtns and differential when necessary sticking Potential Hazards Statement To comply with state regulations the Potential Hazards section and the II..hn procedures must be posted in the drillers dog house The man on the brake driller or relief driller is responsible for shutting the well in BOPE or diverter as applicable as soon as warning signs of a kick are detected and an influx is suspected or confirmed. A copy of the approved permit to drill must be kept on location and be readily available to the AOGCC inspector. This well's primary objective is gas and no sandy are expected to be encountered. No HzS is anticipated Gas sands MAY be encountered from 500' to total depth of the well. These sands will run from slightly depleted to normal pressure. a ProFlo mud system will be properly weighted to control control the pressure of all sands and lost circulation materials will be available on location if required. • 4.6 Drilling Program Summary • • DRILLING OPERATIONS SUMMARY Kenai Loop #1 Start Seat Depth Casing Depth Interval Hole Size MD TVD MD TVD Size Wt(lb/ft) Grade Conn Burst Collapse Tension Drive/ Driven 0' 0' 100' 0' 16 " 84 Welded N/A N/A N/A Structural NO Conductor Surface 13 1/2" 0' 0' 3000' 3000' 10 45.5 K55 BTC 3580 _ 2090- 715 7 3/4" Intm 9 7/8" 0 0' 8000 8000 7 5/8" 29.7 L80 BTC 6890 4790 683 ; Prod Hole 63/4" 7750' 7750' 10600 10600 41/2" 12.6 L80 TCII 84 288 Note: AOGCC MUST be notified 24 hrs prior to each diverter function and BOPe test. Conductor: 1. Drill/Drive 16" conductor to +/- 100ft. RKB. RD conductor rig. 2. MIRU Glacier Drilling Rig #1. 3. Install starting head 16" SLC x 21 '/4", 2M flange. 4. Nipple up 21 1/4", 2M diverter, 16" diverter valve and 16" diverter line. 5. Function test diverter and diverter valve. (AOGCC 24 hr notice) 6. Build spud mud. 7. Inspect survey equipment as surveys will be taken at NO MORE than 500' intervals. Surface: 1. PU 5" drill pipe, bit and BHA per bit proposal. Set up WEEKLY STATUS Report for the Commission. 2. Drill w/ low rpm, gpm until stabilizers have exited drive pipe. Run max gpm, rotary, etc as allowed. Set up elogging as per evaluation section if any. 3. Continue to drill a 13 '/2" hole to 3000' MD/TVD short tripping and pumping sweeps as considered necessary. 4. At hole section TD, pump a HIGH VIS sweep and circulate the hole clean. 5. POOH. Log as per plan. TIH. 6. Pump high vis sweeps and condition mud to lower YP and gels at max gpm, rotary, etc. Monitor pill lag and mud log lag times to aid in adjusting cement volumes for hole washout. Circulate clean (will require more than 1 circulation). 7. Prep for excess mud, cement, rinse water, etc disposal. • I 8. Calculate landing equipment to make sure we have proper space out with top of landing jt±4- 6' above rotary. Run 10%" surface casing as follows Baker-Locking the shoe track: a) Shoe b) Sting-in collar c) Casing With centralizers placed as follows: d) 2 bow-springs with stop collars in center of bottom 2 jts e) Centralizers across the bottom 2 couplings f) 1 centralizer across the coupling of every third jt g) NO CENTRALIZER INSIDE CONDUCTOR AS CASING NEEDS TO BE CENTERED IN ROTARY h) ESTIMATED TOTAL centralizers=±40 w/2 stop collars 9. Perform a running tag. Reciprocate casing. Circulate and condition mud at a rate not to exceed the AV around the collars while drilling. 10. RU cementing head and lines. Test to 500/5000psi. Cement 10 3/4" casing PER cementing proposal with an inner string, cut off cementing when cement reaches surface, dump 2-5 on top of sting-in collar. Circulate clean. Cement volumes are presently designed with 00% excess. Adjust as necessary to allow for cement returns to surface. 11. ND Diverter. Cut off 10 %" casing. Prep to install mud loggers per logging program. Instruct same re dry ditch samples for AOGCC. 12. Install 10 3/" slip lock connection X 11" 5M flanged multibowl wellhead. Test to 50% of casing collapse or 1600 psi whichever is greater/ 13. NU adapter spool. NU 13 5/8" 5M BOPs. Test BOPs and choke manifold to 300/4000 psi, hydril to 300/2500 psi. (AOGCC 24 hr notice) If AOGCC approves, casing may be tested here while testing BOPe. That is, pull test plug and perform casing test under the blinds. NOTE: If AOGCC does not approve of casing test under blinds then test before drilling out float equipment 2000 9i_ NOTE: (BOPe MUST be tested every 7 days during the remainder of the well. AOGCC must be notified at least 24 hours before) NOTE: Maintain good communications with regulatory. Communicate with the inspector every couple of days just to let them know what is going on. 14. Set wear bushing Run CBL. • . Intermediate: 1. PU 9 7/8" PDC bit and BHA. Drill out float equipment and at least 20' of new formation. Circulate hole clean. 2. Contact AOGCC. Test shoe to LEAK OFF on a chart. Email results. Estimated Leak Off EMW is 16.5'ppg emw. If test is less, discuss with office. A minimum of 13.5 is acceptable. -' 3. Drill an additional 300' or more until a good "sand" has been identified by the mud logging crew and verified by the geologist. Circulate hole clean and pull into casing. Perform an additional LOT. Record on a chart. 4. Drill to ±8,000'MD/TVD) as per program, short tripping and pumping HIGH VIS sweeps as required. MINIMUM flow rate should be 500gpm. Higher if possible. 5. At hole section TD, pump a HIGH VIS sweep and circulate the hole clean. Make wiper trip. Again pump a sweep and circulate hole clean. Make sure pump is at MAX rate. Hole will require more than just circulating bottoms up. POOH. 6. Elog as per evaluation program. 7. TIH. Condition hole as before. Condition mud to lower YP and gels. Monitor pill lag and mud log lag times to aid in adjusting cement volumes for hole washout and compare to elog value. 8. POOH laying down DP. Pull wear bushing. 9. Change • pipe ram with 7 5/8"casing rams in upper ram. Run test joint and test casing ram to. r•si. y,lGk yto©o 10. Calculate s ace out and prep as per previous. Run casing as follows Baker-Locking the shoe trace. Shoe b) 2 jts casing c) Collar d) casing With centralizers placed as follows: e) 3 bow-springs with stop collars in center of bottom 3 jts f) Centralizers across the bottom 3 couplings g) 1 centralizer across the coupling of every third jt for the next±3000' casing (±25) but will be adjusted if Beluga is productive h) 1 centralizer across the coupling of every third jt to surface shoe (±16) i) ESTIMATED TOTAL centralizers = 41 w/3 stop collars 11. Run and cement 7 5/8" casing per cementing procedure while reciprocating. Land hanger. Cement volumes are presently designed for ±3000' of fill (±5000'MD) with 40% excess. Adjust as necessary to insure top of cement to 5000'. • • 12. Back out landing joint. Install packoff and test to 5000 psi. Change out 7 5/8" casing rams with VBR's. Run test plug and test BOPs to 300/4000 psi, hydril to 300/2500 psi. (AOGCC 24 hr notice) If AOGCC approves, casing may be tested here while testing BOPe. 13. Set wear bushing. PU bit and BHA for drilling ahead and 4" drill pipe. 14. Clean out and test intermediate casing to 2500 psi adjusted for mud wt in use.at test. POOH. 15. Run CBL. Production Liner: 1. Continue PU 4" drill pipe. 2. PU bit and BHA per bit/programs. Drill float equipment and 20' of new formation. CBU. 3. Contact AOGCC. Test shoe to an FIT of 13.5 ppg emw on a chart. Email results. Estimated Leak Off EMW is 16.5 ppg emw — 4. Continue drilling 6 3/4" hole to an anticipated TD of 10600'MD/TVD as per the program, pumping HIGH VIS sweeps and short tripping as required. Survey at least every 500'. MINIMUM flow rate should be 350 gpm— higher if possible. 5. At TD pump HIGH VIS sweep and circulate hole clean. Make wiper trip. Repeat sweep and make sure pump is at MAX rate. Hole will require more than just circulating bottoms up. TOOH. 6. RU logging company. Run open hole logs as per evaluation program. NOTE: Either proceed with liner for welltest/completion below or submit Sundry per AAC 25.105 for Abandonment or per AAC.25.072 forTemporary shutdown. 7. TIH w/ 6 %'' tri-cone bit to TD for wiper trip. TOOH and laydown BHA and drill pipe. Leave enough 4" to run the liner. Pull wear bushing. 8. RU and run 4 Y" TCII casing liner with hanger on drill pipe. Run liner to TD with top of liner at approximately • IV..�r ie On bottom reciprocate and rotate liner while circulating the hole. Run casing a o lows Baker-Locking the shoe track:: a) Shoe b) 2 jts casing c) Collar d) casing With centralizers placed as follows: e) 3 bow-springs with stop collars in center of bottom 3 jts f) Centralizers across the bottom 3 couplings g) Centralizer placement from shoe track to the base of the 7 5/8" will be determined by log interpretations h) 2 rigids in liner lap area . • i) ESTIMATED TOTAL centralizers = ±25 w/ 3 stop collars plus additional across productive intervals 9. RU cementing company. Cement 4 '/2" while reciprocating and rotating pipe. Drop wiper plug and bump plug with 6% KCL. Pressure up and set the liner hanger. Release hanger running tool, set liner top packer, pick up and clear seal area of any cement. 10. Circulate hole clean while rotating if possible. Make note of cement in returns. Displace with 6% KCL. Test 7 5/8" casing and liner to 3700 psi (Production MASP) adjusted for mw in use. POOH. Well Test/Completion: 11. RU and run CBL in liner and intermediate. 12. Verify rams in place for welltest / completion workstring tubing. Test BOPe's- rams to 300/4000psi and hydril to 300/2500 psi witnessed by AOGCC and recorded on a chart. 13. Perform perforate and test procedures. e 14. Run 2 7/8" 6.5 ppf modified 8rd tubing installing required completion hardware. Space out tubing and land hanger. ND BOP, NU tree and test to 5000 psi. 15. Rig down and move out drilling rig. a 0 4.7 Casing program Summary Start Depth Seat Depth Casing Interval Hole Size MD ND MD ND Size Wt(Ibift) Grade Conn Burst Collapse Tension Crne/ Structural Driven 0' 0' 100' 0' 16 " 84 X-56 Welded WA WA N/A NO Conductor Surface 13 1/2 0' 0' 3000' 3000' 103/4" 45.5 K55 BTC 3580 2090 715 Intm 97/8" 0' 0' 8000' 8000' 75/8" 29.7 L80 BTC 6890 4790 683 Prod Hole 6 3/4" 7750' 7750' 10600' 10600' 412" 12.6 L80 TCU 8430 7500 288 Buck on float equipment @ Tobpscope yard MU casing to optimum torque • • 4.8 Casing Design and calculations • • CASING DESIGN CALCULATIONS Kenai Loop #1 Note: In this program, MASP for each hole section is defined as the pore pressure (in psi) at the next casing point (or TD) less a gas column to surface. Gas gradient is assumed to be 0.1 psi/ft. Start Depth Seat Depth Casing Interval Hole Size MD TVD MD TVD Size Wt(Ib/ft) Grade Conn Burst Collapse Tension Drive/Structural Driven 0' 0' 100' 0' 16 " 84 Welded N/A N/A N/A NO Conductor Surface 13 1/2" 0' 0' 3000' 3000' 10 3/4" 45.5 K55 BTC 3580 2090 715 Intm 9 7/8" 0' 0' 8000' 8000' 7 5/8" 29.7 L80 BTC 6890 4790 683 Prod Hole 6 3/4" 7750' 7750' 10600' 10600' 4 1/2" 12.6 L80 TCII 8430 7500 288 * = minimum of body and connection strengths RECOMMENDED Casing Design Factors BURST(from internal pressure) 1.1 COLLAPSE (from external pressure) 1.0 TENSILE (joint body and connection) strength 1.6 BURST REQUIREMENTS 10 3/4 Surface Casing 9 7/8" Hole Section —estimated pore pressure of 8.6 ppg EMW This hole section will be drilled to 8000'TVD with BOP's and related equipment installed and tested and with a 8.6-9.4 ppg mud weight. Based on available offset information the most likely maximum pore pressure is anticipated to be 8.6 ppg EMW. Estimated fracture gradient(FG) at the 10 3/4" shoe is 13.5 ppg emw and safety factor(SF) of .5 ppg emw.. MASP (9 7/8") = 8000'(TVD) * ((8.6ppg * .052)-0.1 psi/ft) = 2778 psi MAWP = 8000'(TVD) * ((8.6ppg * .052)) = 3578 psi MASP Csg Design =3000'(TVD) * ((13.5 ppg + .5 ppg)*.052)-0.1 psi/ft) = 1884 psi. Burst Stress- MASP Csg Design is used since in case of a kick in excess of 1884 psi, shoe would break down. Design Factor Burst Strength/ Burst Stress = 3580 psi / 1884 psi = 1.90 • • 7 5/8" Intermediate Casing 6 3/4" Hole Section—estimated pore pressure of 8.6 ppg EMW This hole section will be drilled to 10600'TVD with BOP's and related equipment installed and tested and with a 9.4 ppg mud weight at TD. Based on available offset information maximum pore pressure would be±8.9 ppg EMW with a most likely of 8.6 ppg EMW. MASP (6 3/4") = 10600'(TVD) *((8.6 ppg * .052)-0.1 psi/ft) = 3680 psi ` MAWP= 10600'(TVD) *((8.6 ppg * .052)) = 4740 psi MASP Csg Design = .5*8000' (ND) *(9.4 ppg*.052) =1955 psi. Casing filled with 50% gas. Burst Stress-MASP (6%")with 8.6 ppg is used since this is the highest pore pressure conceivable based on offset info. Design Factor Burst Strength/ Burst Stress=6890 psi/3680 psi = 1.87 4 '/z" Production Casing MASP (6 3/4") = 10600'(TVD) *((8.6 ppg *.052)-0.1 psi/ft) = 3680 psi MAWP = 10600'(TVD) *((8.6ppg * .052)) = 4740 psi Assuming worst case MASP Csg Design = MAWP Burst Stress- MAWP with 8.6 ppg is used since this without a gas gradient. Production Design Factor Burst Strength/Burst Stress = 8420 psi/4740 psi =2.28 r- 7 5/8" — Intermediate Casing in PRODUCTION Using same assumptions as in the 4 %2' casing design AND Assuming worst case MASP Csg Design = MAWP Production Design Factor Burst Strength/ Burst Stress=6890 psi/4740 psi = 1.46 • • COLLAPSE REQUIREMENTS Use an external pressure that the casing could possibly be put under. One design methodology uses pore pressure at the casing shoe with a gas gradient internally. 10 1/4 Surface Casing External Pore Pressure less gas gradient= MASP = 3000'(TVD) *((8.6 ppg *.052)-.1) = 1042 psi "7 Design Factor Collapse Rating/Collapse stress=2090 psi/ 1042 psi = 2.00 7 5/8" Intermediate Casing External Pore Pressure less gas gradient= MASP = 8000' TVD * 8.6 * .052 -0.1 psi/ft) — 2778 9 9 ( ) (( pp9 ) P ) — psi Design Factor Collapse Rating/Collapse stress =4790 psi/3680 psi = 1.72 4 1/2" Production Casing External Pore Pressure less gas gradient= MASP = 10600'(TVD)*((8.6ppg * .052)-0.1 psi/ft) = 3680 psi Design Factor Collapse Rating/Collapse stress = 7500 psi/3680 psi =2.03 -- • • TENSILE REQUIREMENTS Tension is usually defined as the body or connection tensile strength (whichever is least) compared to the buoyed weight of casing in mud when run. Buoyed weight is defined as weight in air minus the weight of displaced fluid that it is run in. Buoyed weight formula= MD *Csg Wt(Ib/ft)*(1- mw/65.45)where 65.5 is the avg wt per cu ft of iron in air. 10 3/4 Surface Casing Buoyed weight= 3000'(MD) *45.5 ppf*(1-9.0/65.45) = '117744 lbs --- Design Factor tensile strength/buoyed wt = 715000 lbs 107744 lbs=6.07 7 5/8" Intermediate Casing Buoyed weight= 8000'(MD) *29.7 ppf*(1-9.2/65.45) =204227 lbs / Design Factor tensile strength/buoyed wt =683000 lbs/204227 lbs = 3.34 4 '/z" Production Casing (run as a production liner, then tying back) Buoyed weight(liner only) = (10600'-7700')'(MD)* 12.6 ppf*(1-9.4/65.45) =24821 lbs Design Factor tensile strength/buoyed wt =288000 lbs/24821 lbs = 11.6 I S 4.9 Calculation of Maximum Anticipated Pressures(MASP and MAWP) • • MAXIMUM ANTICIPATED SURFACE PRESSURES (MASP) and MAXIMUM ANTICIPATED WORKING PRESSURES (MAWP) Kenai Loop #1 Note: In this program, MASP for each hole section is defined as the pore pressure (in psi) at the next casing point(or TD) less a gas column to surface. The MAWP is defined as the maximum pore pressure WITHOUT a gas gradient. Gas gradient is assumed to be 0.1 psi/ft. 131/2" Hole Section—estimated pore pressure of 8.6ppg EMW This hole section will be drilled to 3000'TVD with a diverter only(no BOP's) and ± 8.7-9.1 ppg mw. While MASP will equal the formation pore pressure at the shoe less a gas gradient to surface, it cannot be shut in, only diverted. MAWP is the pore pressure anticipated without the gas gradient. Calculations: MASP (13 %2') = 3000'(TVD) *((8.6ppg * .052)-0.1 psi/ft) =f(04-2 psi MAWP = 3000'(TVD) *((8.6ppg * .052)) = 1342 psi 9 7/8" Hole Section—estimated pore pressure of 8.6ppg EMW This hole section will be drilled to 10000'TVD with BOP's and related equipment installed and tested and with a 8.9-9.4 ppg mud weight. Based on available offset information the most likely maximum pore pressure is anticipated to be 8.6 ppg EMW. MASP (9 7/8") = 10000'(TVD) *((8.6ppg * .052)-0.1 psi/ft) = 77 si MAWP = 10000'(TVD) *((8.6ppg * .052)) = 3578 psi 6 3/4" Hole Section—estimated pore pressure of 8.6 ppg EMW This hole section will be drilled to 10600'TVD with BOP's and related equipment installed and tested and with a 10-10.4 ppg mud weight at TD. Based on available offset information maximum pore pressure would be±8.6 ppg EMW with a most likely of 8.6 ppg EMW. MASP (6 3/4") = 10600'(ND) *((8.6ppg * .052)-0.1 psi/ft) 9'365* MAWP = 10600'(TVD)*((8.6ppg *.052)) = 4740 psi • 4.1 Casing Test Pressure Calculations Casing test pressures are based on the maximum of MASP or 50%of the BOP ram rating In this well,formation pressure is assumed to be the backup. See Casing design and MAWP calculations. BOP PROGRAM,Test Pressures and Casing Test Pressures Casing Size Casing Equipment Test Pressure Low/ High 16 " Structural Casing @ 100' 21-1/4" 2000 DNerter Function Test 70%of Burst N/A Test Pressure Function Test NO Conductor • 70%of Burst' Test 10 3/4" Surface Casing @ 3,000 (1) 13-5/8" 5000 Annular 250/ 2500 70%of Burst 2,506 Min.(2) 13-5/8" 5000 Pipe Rams 250/ 4000 Test Pressure 2500 (1) 13-5/8" 5000 Blind Rams 250/ 4000 MASP 1,042 MAWP 1,342 7 5/8" Intermediate @ 8,000' r (1) 13-5/8" 5000 Annular 250/ 2500 70%of Burst 4,823 Min.(2) 13-5/8" 5000 Pipe Rams 250/ 4000 Test Pressure 3,100 (1) 13-5/8" 5000 Blind Rams 250/ 4000 Recommend test Press 2800 MASP 2778 MAWP 3,578 4 1/2" Production Liner @ 10,600' r (1)Will not drill out 70%of Burst 5,901 Min.(2)Will not drill out Pipe Rams Test Pressure 3750 (1)Will not drill out Blind Rams MASP 3,680 MAWP 4,740 • 4.11 Blowout prevention Equipment Details,Testing and General Procedures SEE ATTACHED DRAWINGS Testing: Onsite supervisor will verify all pressure tests. All tests are to be recorded on the!ADC and DDR reports. ALL are to be charted. AOGCC to verify BOP tests(24 hr notice) Casing Test BOPS Test Casing Casing Size I MAWP(psi) MASP(psi) Pressure Test Fluid 250 psi Pressure Density Size&Rating Low/high (psi) (lb/gal) (Psi) Surface 10% 1,342 1,042 2500 9.2(1)13 5/8°5M annular 7 2500 (1)13-5/8"5M pipe ram 7 4000 (1)13-5/8"5M blind ram (1)13-5/8"5M drilling spool w/3—1/8°5M outlets (1)13-5/8"5M pipe ram Intermediate 7 5/8 3,578 2778 2800 10(1)13 5/8"5M annular 2500 (1)13-5/8°5M pipe ram 4000 (1)13-5/8"5M blind ram (1)13-5/8"5M drilling spool w/3—1/8°5M outlets (1)13-5/8"5M pipe ram Production 4% 4,740 3,680 3750 10.2(1)13 5/8"5M annular Will not drill out (1)13-5/8"5M pipe ram (1)13-5/8"5M blind ram (1)13-5/8"5M drilling spool w/3—1/8"5M outlets (1)13-5/8"5M pipe ram 7 4.11a The choke manifold will be rated 3 1/8"x 5000 psi. It will include a remote hydraulic actuated choke and a hand adjustable choke. Also on the location is a poor-boy gas buster and a vacuum type degasser. Flow sensors will be installed in the flowline and the mud pits will have a PVT system. All data will be available to the driller, company men and key individuals. 4.11b Function Testing: Function on each tour. Report test on daily drilling report(DDR). • 4.12 Wellhead Equipment Summary Component Description Casing Hanger Type CASING HEAD,ASSY,FC-29,10-3/4 SLIPLOC BTM,1f 1 g (279.4W,34.5MPA)6B FLG TOP,CM1 TWO 2(50.8M 4) mandrel Casing Head LP OUTLETS,EIGTH 1/2(12.7MM)NPT PORTS FOR PLASTIC INJ,W/TWO 0-RINGS,60K LA ADAPTER.VG-LOC X QUICK DISCONNECT,16 VG-LOC BTM, QUICK DISCONNECT PIN TOP,ONE 4 LP OUTLET,ARRANGE Adapter flange TO SWALLOW LANDING RING,60K LOW ALLOY.OW LOW TEMP SEALS,500 PSI WP CASING HANGER,ASSY,MB-235 FLUTED,10 3/4 X 75/8 Casing Hanger (273.1MN X 193 7MM),7 5/8(193.7MM)(29.7 LB/FT) mandrel MOD BUTT BOX BTM X 8.00-4-STUB ACME-LH,6.875 BORE ,7 5/8 SUCK NECK,4140 80K,6A-PU-AA-PSL1-PR2 ADAPTER,FLG X QUICK DISCONNECT.QUICK DISCONNECT Adapter flange BTM WITH TWO 0 RING SEALS,21-1/4 2000 PSI FLG - TOP,60K LOW ALLOY,OW LOW TEMP SEALS,500 PSI WP TUBING HEAD,ASSY MB-235.11-5000(279MM,34.5MPA) STD BTM X FLG TOP,CM(2)2 1/16-5000(52MM. Tubing Head 34.5MPA)SSO WI 2 VR THREAD,PREP F/CONTINUOUS CTRL LINE IN TOP,INJECTION PORTS F/P-SEALS IN BTM FLG,PSL1 PR1 PU AA USE SPACER SPOOL AS NECESSARY SEE ATTACHED DRAWING . . 4.13 Directional Program Summary Well is to be drilled as a straight hole. Surveys will be taken per AOGCC regulations(500') 4.14 Directional Surveying Summary Single shot every 500'or downhole realtime surveying tool. 4.15 Drilling Fluids Program Summary (See Drilling Mud Program) 4.16 Drilling Fluids Specifications (See Drilling Mud Program) Note: Liner plug will be bumped with brine. Casing above will be displaced to brine treated with corrosson inhibitor 4.17 Solids Control Equipment To °' y c a, Comments C d '6 C 3 2 N co o R os 2 N N d c j 0 j s N U c ( 0 0 0 V 0 0 c En O Closed Loop System,Full 0- Containment, 10600'MD/ x x x run shakers TVD with finest screens possible Item Equipment Specifications (quality,design type,brand,model,flow capacity,etc.) Shaker 2-SWACO Mongoose PT Desander N/A Desilter 1 —Derrick Model 0522 Mud Cleaner N/A Centrifuge 1—Hutchison Hayes 5500 Cuttings Dryer N/A Cuttings Injection N/A Zero Discharge N/A Best Practices: Have vacuum trucks pull fluids from trough above the cuttings tank to more efficiently pull fluids for disposal.This minimizes water added to the solids to suspend for pick up by the trucks,thus minimizing total volume to be disposed of. Cuttings will be pulled from holding area per diagram. 4110 III 4.18 Cement Program Summary Cementing Summary '#VALUE! Surface .1 Size: 10 3/4 " Setting Depth: 3,000 ft. Annular Volume(No Washout): 1111 °cu.ft. Lead Slurry Density: 0 ppg Yield: 0.00 cu.ft./sx No.Sxs: 0 Specifications: None Desired Top of Cement: 0 ft. I 0®( Tail Slurry Density: 12 ppg Yield: 2.30 cu.ft./sx No Sxs: 950 Specifications: I 8 Hour Compressive Strength of Tail Slurry: 1000+ psi Total Volume: 2,185 "'cu.ft. Desired Top of Cement: 0 ft. 950 Prod.Casing J Size: 7 5/8 " Setting Depth: 8,000 ft. Annular Volume(No Washout): 644 cu.ft. Lead Slurry Density: 13.5 ppg Yield: 1.83 cu.ft./SX No.Sxs: 370 Specif ications: G Desired Top of Cement: 5,000 ft. V�,�UU P% Tail Slurry Density: 15.8 ppg Yield: 1.16 cu.ft./Sx No.Sxs: 200 Specifications: G Desired Top of Cement: 7,250 ft. Total Volume: 909 cu.ft. 8 Hour Compressive Strength of Tail Slurry: 1000+ psi 570 Prod.Liner I Size: 4 1/2 " Setting Depth: 10,600 ft. Annular Volume(No Washout): 403 cu.ft. Lead Slurry Density: 0 ppg Yield: 0.00 Cu.ft./9X No.Sxs: 0 Specifications: None Desired Top of Cement: N/A ft. Tail Slurry Density: 13.5 cu.ft. Yield: 1.83 Cu.ft./SX No Sxs: 300 Specifications: "Premium" Desired Top of Cement: 7,750 ft. Total Volume: 549 cu.ft. 8 Hour Compressive Strength of Tail Slurry: 1000+ psi 300 • Comments: See cement prognosis for details and spacer specifications. Actual cement volume pumped will be determined by elog caliper and other parameters. • • 4.19 Bit Summary See attached Bit proposal 4.20 See Attached Casing Test,FIT,Lot procedure • Glacier 1 Diverter Flow line 21 1/4" 2M Diverter —� 16"Automatic Knife Valve Diverter Spool — 16" Diverter Line • BOP TEST 250/4000 psi. 1. Annular 250500psi 2. Upper Pipe Rams, Check Valve, Dart Valve, Upper Top Drive Valve, Choke Manifold Valves # 1, 10, 11, 12 3. Outside Kill Line Valve, Floor Valve, Lower Top Drive Valve, Choke Manifold Valves # 6, 8, 9 4. Inside Kill Line Valve, Choke Manifold Valves # 2, 5, 7 5. HCR 6. Manual Choke Line Valve 7. Lower Pipe Rams 8. Koomey Performance Test 9. Blind Rams, Choke Manifold Valves # 3, 4 • Glacier 1 BOP Stack Flow Nipple _—♦ Flow Line 13 5/8"5M Annular Preventer 13 5/8"5M Double . Pipe Ram . Ram Preventer 2 1/16"5M Blind Ram . Check Valve 2 1/16"5M Manually 3 1/8"5M Manually Operated Valves Operated Valve --�X X —�I ® Choke 1111011_�X 13 5/8"5M Cross 3 1/8"5M Hydraulically Pipe Ram Operated Valve 13 5/8"5M Single —► Bottom of Single gate must be Ram Preventer =� 24-45"from ground level for Glacier 1 rig placement. 13 5/8" Mx1 5/8"5M 35/ 5 8 13 5 58 Drilling Spool 11"5M x 13 5/8"5M DSA i • Glacier 1 Choke Manifold To Gas Buster To Blooey Line Bleed off Line to Shakers n 0 ►.� u I% II II II II 11 00 _ 00 00 006 006 000 I� , , I I I 1 I 1 II II (' (I I I I I' 1I ■ MUM �1 �� © II 1I VIP u u n ■ MIIM II �I �1 0 © u MIIIMIM MIMI IKOIIIIKOIlI o0 0 I1(0111 7 I I 3" 5M Valves 0 2 9/16" 10M Swaco 1 ' 3 1/8" 5M Manually Hydraulically Operated Adjustable Choke Choke Gauge Block • Choke Hose to HCR 1 (from BOP Stack) 0-6,000 psi Choke Control Pressure Gauge Pressure Sensor Buccaneer GENERAL LEAK-OFF TEST PROCEDURE Perform Casino Test (CIT) -this must be done even if casing was previously tested against the blind rams -the pressure to which the casing should be tested should be 300-400 psi above the expected surface pressure needed for the leak off test. It is NOT necessary to retest to the APD casing test pressure. 1. GIH and clean out to the top of the float collar for casing test. 2. Circulate and condition mud until shaker is free of cuttings and mud weight in is within +/-0.1 ppg of weight out for several consecutive measurements. 3. Rig up, pressure test and check for leaks. Make sure air is purged from the system. 4. Pumping down the drillpipe, break circulation with cementing unit(or low vol/high press pump). 5. Close annular BOP or pipe rams. 6. Pump down drillpipe at 1/2 bpm. Do not exceed this rate and maintain constant rate as well as possible. Record pressure at each 1/2 bbl increment pumped. NOTE: Larger than 11 3/4"use.75-1 bpm, 11 3/4-9 5/8 use.75-.5 bpm-plot should be±greater than 45° 7. Continue until the test pressure(as described above) is reached. Do not exceed test pressure. Stop pump and shut in valve. 8. Monitor and record shut in pressure; hold for at least 5 minutes, or as specified. Troubleshoot problems if desired test pressure cannot be obtained. 9. Release pressure and record volume of fluid recovered during flow back. 10. Input recorded pressures and corresponding volumes on the Casing Test section of the"CSG-FIT"worksheet(in the yellow shaded area). This is the minimum volume line for the subsequent leak off test. Enter flow back when pressure is released. S • Buccaneer GENERAL LEAK-OFF TEST PROCEDURE Perform Formation Test (LOT, FIT, etc) -enter all the header information for the well, rig, casing size, shoe depth, mud weight, date and your name at the top of the form on the "CSG-FIT"worksheet. 1. Drill shoe track and +20' of new formation. POOH into the casing shoe. Circulate and condition mud until shaker is free of cuttings and mud weight in is within +/-0.1 ppg of weight out for several consecutive measurements. 2. Rig up lines, pressure test and check for leaks. Make sure air is purged from the system. 3. Pumping down the drillpipe, break circulation with cementing unit(or low vol/high press pump). 4. Close annular BOP or pipe rams. 5. SLOWLY pump down drillpipe and maintain constant rate as well as possible. Required rate may vary, but first attempt should be at 1/2 bpm (OR same rate as casing test). Record pressure at each 1/2 bbl increment pumped and plot on the FORM INTEG.TEST(FIT) section of the"CSG-FIT"worksheet(in the blue shaded area). This will require teamwork among at least two, but better with three individuals. If the FORM INTEG. TEST(FIT) plot curves BELOW the Maximum Volume Line, stop and bleed off pressure then re-run the test at a higher pump rate (suggest 1/4 bpm higher). Note-also have someone record casing pressure from the choke manifold at the same--bbl increments. If these pressures differ from the drillpipe recorded pressures by more than 10%, notify the office. 6. Continue until leak off(fracture initiation) is detected as indicated by a change in the rate of pressure increase. This is determined by the leak off test chart and observation of the pressure behavior. Once leak off indications are noted continue to pump at constant rate to confirm. If the pressure resumes a constant rate of increase, continue pumping and watch for subsequent leak off indications. If the rate of pressure increase continues to decline, continue pumping for 3 more_bbl increments to insure fracture has occurred (a noticable pressure drop should be evident). If a sudden pressure drop occurs, stop pumping immediately. 7. Record instantaneous shut in pressure(ISIP). Monitor and record shut in pressure every minute for at least 10 minutes. See#11 below 8. Release pressure and record volume of fluid recovered during flow back. 9. If the measured leak off pressure is less than the predicted leak off, then a cement channel may exist. Whenever a cement channel is suspected, the LOT should be repeated for confirmation. If a channel exists there should be little or no improvement seen. LOT or FIT or PIT (in EMW)=pressure(psi)/.052/casing shoe depth('TVD) +current mud weight(MA) 10. If the Leak Off plot falls between the Minimum and Maximum Volume Lines, this is a good leak off plot. Pick the point on the curve where the line begins to break over(the rate of pressure increase has changed from a straight line) . This is the leak off value. On a"jug" test, there is no bend. PPG equivalents are calculated on the right. 11. Input recorded pressures and corresponding volumes on the FORM INTEG.TEST(FIT) section of the"CSG-FIT" worksheet. Values should initially fall between the Maximum volume line and the Csg Test line. • • 12. Input recorded shut in pressures and corresponding times on the Shut In Pressure (ISIP)section of the "CSG-FIT"worksheet(in the yellow shaded area). This is indicated by ISIP and incremental time @ the bottom of FORM INTEG. TEST(FIT) section. GE Oil & Gas Drilling & Production BUCCANEER RESOURCES, KENAI PENINSULA , 2011 10-3/4 X 7-5/8 X 3-1/2 OD, 10M MSP MB-235 MULTIBOWL ASSY HP 110059 (47.00') 0 1 1 Mal ' .,= 0/#0 3-1/8 5000 I ? 4 !' (85.00") p*iJi occo : II.el W.7.. .711111 1^I 0 Ai 1^I 3-1/8 5000 1'% ; - ow MM rpm. 11-5000 18.81" t ' :. <a tsj lip_ - - i :1 11-5000 - I 25.50" •iI an i 10-3/4" CSG 7-5/8"CSG - 3-1/2"TUBING MGE imagination at work Poorboy degasser -- OooOO.{]O s OO000 .. -----i . , Mud pump engines 1 1_12 XQ01EY ■ • �'-0' X 11'-ifY I1111111 I _ ` _j MUD-PUMP TRAILER LA dT Al Of ((:i 1 EQUIPMENT LOCATION PLAN Mix *1 a *2 Charge p kl a Y2 �i Ilil -_ I• 1 �ir [ 75HP 7 ,, [ . 1 . ,1. 6X5 1 6X$ 6X5 6X5 ,, .�.:,w , j4' 14' 14' 14' „ n �- .... .. . ) -' i M . M M • • M I � 1ii°I � iii--I I� _ I _� .11 IHIIILI1Ull � 1. I I' I i' 11 1,•'411k-• 1 �_ • MUD TRAILER LAYOUT AND 11•MI----ll-1r-- iI,i II ii 1:' '1' 'III'-I '.- EQUIPMEN7 LOCATION PLAN l_I111_I11_1Ii1I0111I 11r � I� 1� ,. ,1 i p�'!III�7 . .I� a lr Mixing hopper 1`I`r.�..._!„iii NII1 ■ u■�Ir1u11i. 1 1111111 Agitators e a fee -•m == a,�.� ... _._.cep 1. =:-.I_i1 • ■ i1. I IL's iI u�NlNMNs..!!i�.. 1 1111111 r...'r 11 Desilter . Vacuum degasser .. _i Shale shaker #1 l Cuttings box '114 C I'�"": III 1, = I I Ill Centrifuge module ■ Ilk i 41 / PROPERTY LINE 110.:1 .000 A ..- ��.. TEMPORARY WASTE IMPOUNDMENT F (78 'x 78'ID) Z Y ‘43 S:33 S GT y u.Q ,..,.. �� ' t OVERHEAD UTILITIES • 1011111111111111111111. - °.-r �.. 1 ACCESS RAMP ENLARGED AREA AIMM TECHNOLOGIES INC. PROPERTY LAYOUT EXCAVATOR 1 — WASTE TRANSPORT BIN / - um ITY POI F — 400 bbi OPEN TOP // TANK J/ .■ I /t - 400 bb)OPEN TOP TANK 4 C I 1 • } Vacuum Trucks lilgi g 0 Is 30 500 bbl FRAC TANKS ( SCALE MT) 0 DIE Jen 102011 PROJECT NO.14030001.001 2 S PRO1rdrMANAGER 3.01110SOn CLIE%t,\i\MI TECIIN11L0(iIfS INC, .,N SITE LAYOUT AIMM VVST �,N ..- ,°�nno3o9,e,,3nc. DRAWN RI K FLEMING REVISION NO I ► AIMM TECHNOLOGIES INC. .' DRILLING WASTE"TREATMENT FACILITY NHGURE SHEET NO.2 at 5 • S Mii SW A ; DRILLING FLUIDS PROGRAM BUCCANEER Well: KENAI LOOP #1 Prepared by: Jim Dwyer Senior Project Engineer M-I SWACO Reviewed by: Dallas Rhodes M-I SWACO Draft Copy: Buccaneer Confidential S Mi SM(AC_q ATTN: Mr. Andy Rike Buccaneer Resources, LLC Houston, Texas Dear Mr. Rike: Enclosed is the recommended drilling fluid program for the Kenai Loop#1 well to be drilled in 2011. The following is a brief synopsis of the program. Overview: Kenai Loop#1 well is an exploration well targeting the Beluga and Tyonek formations in the Kenai Peninsula. Flo-Pro fluid with 3%KCL will be used for the intermediate and production intervals. d� . �a. Surface Interval: The surface interval will be drilled with the standard Gel/Gelex spud mud. No problems were noted in this interval while drilling the offset wells. Intermediate Interval: This interval will be drilled with a Flo-Pro fluid. After drilling out the surface cement, the well will be displaced to a 3%KCL Flo-Pro fluid. SafeCarb bridging material, Gseal and Sack Black should be available for a contingency prior to drilling the Sterling formation as this is a highly porous zone that has contributed to losses of whole mud in this area. Production Interval: This interval will be drilled with the same fluid that was used to drill the intermediate interval. The fluid will be pre-treated with Bicarb prior to drilling out the cement. Any further fluid dilutions will be made in order to keep the mud properties at the recommended specifications. Fluid loss should be maintained @ 4-6 cc's API for this interval. Jim Dwyer Sr. Project Engineer Mi SWACO Alaska NOTE: This program is provided as a guide only. Well conditions will always dictate fluid properties required. Draft Copy: Buccaneer Confidential • Mi SWACO EXECUTIVE SUMMARY MI SWACO The CD 550 centrifuge installed on Glacier 1 rig will assist in removal of LGS for minimizing mud weight and dumping and dilution of fluids. Disposal and dilution costs will be reduced with the use of centrifuge. MI SWACO We expect to drill this well for a product cost of less than $21 per foot. This estimate is based on 10.0 ppg mud weight in production hole. _�k We estimate the use of less than 4800 barrels to drill IFE this well, not withstanding any losses to the formation. • Reuse of mud from intermediate hole for production hole will reduce mud costs and injection disposal costs. Draft Copy: Buccaneer Confidential • • MI 81/1/4_, Section 1 - Objectives / Benchmarks / Goals Goal / Objective Achieve Health, Safety and Environmental Goals Benchmark No Accidents, No harm to people, No damage to environment Performance Days away from work, medical treatments, fluids discharge, spills Measure Goal / Objective No NPT on well Benchmark No NPT due to mud properties out of specification. Performance Daily review of mud properties with mud engineer and project Measure engineer Goal / Objective Minimal losses to formation Benchmark Control and/or minimize seepage losses in under pressured sands. Performance Verify losses per hole section on well with OneTrax Measure Goal / Objective No NPT on well Benchmark No hole cleaning issues upon following the program and/or rig site mud engineers recommendations. Performance Monitor NPT on daily reports Measure Draft Copy: Buccaneer Confidential • . IA Mi SVKACq____- Section 2 —Well Design , Well: Kenai Loop #1 Casing Hole Casing Depth Mud Mud Weight Cost Sum Size Size Program (MD) System (PPM Days in in ft Conductor 100' 3000 GEL SPUD 8.8-9.2 $22,629 6 10.75"" 14.75" 7.625" 9.875" 8,000 FLOPRO 9.0-9.4 $130,886 8 4.5" 6.75" 10,500 FLOPRO 9.4-10.4 $49,432 6 Liner Cost does include engineering charges Draft Copy: Buccaneer Confidential • Mi SWACO 2 —Well Design EMS Mud Cuttings and Mud Target Goals (bbls) Performance 14.75" OH 9.875" OH 6.75" OH Benchmark Section Section Section Section Length (ft) 3000 5000 2500 Cuttings Discharges** 634 473 111 Mud *** Discharges 1902 946 222 Mud + Cuttings Discharges 2536 1419 333 EMS Mud Cuttings and Mud Target Goals (bblsift.) Performance 14.75" OH 9.875" OH 6.75" OH Benchmark Section Section Section Section Length (ft) 3000 5000 2500 Cuttings Discharges .2113 .0947 .0443 Mud Discharges .634 .189 .089 Mud + Cuttings Discharges .845 .2839 .133 ** Gauge hole cuttings *** Includes mud on cuttings Draft Copy: Buccaneer Confidential • • _ sd� MN BWAIC1 Section 3 — Challenges Potential Problems Discussion / Recommendations COMMUNICATION — The Field Mud Engineer will communicate daily with the Town Project Engineer. The Project Engineer will then communicate daily with the rig Drilling Engineer. Communications should be about, but not limited to, fluid properties, hole difficulties, possible changes to the mud program, and proposals to use products not included in the mud program. WHOLE MUD LOSSES TO THE FORMATION — Maintain proper bridging materials in the mud system if losses encountered in the intermediate and production intervals. FLUID LOSS CONTROL — In the production interval the API fluid will be maintained in the 4 - 6 cc's at all times. In addition to sufficient fluid loss agent additions, this may require adequate dilution of the mud system in order to keep reactive drill solids to a minimum. LSRV — When drilling with a FloPro fluid, the low shear rate rheology should be maintained around 25 — 35,000 cps. In addition to adequate additions of Duovis, this will also require keeping reactive drill solids to a minimum in order to reduce or eliminate false and unwanted high LSRV. DRILL SOLIDS — MBT — The MBT should be kept at less than 8 ppb in the production interval through aggressive use of solids equipment and dilution as needed. MIXING CONDITIONS — Whenever possible all treatments to the mud system should be made as pre-mix additions. Polymers and KCI should first be mixed in fresh water in that order and then blended into the active system over one or two circulations as needed. CORROSION — Conqor 404 additions should be made daily when drilling with FloPro fluid in order to maintain a Conqor 404 concentration of+/- 2000 PPM. CORROSION - Sodium Meta Bisulfate additions should be made daily as needed with any fluid in the hole. Maintain a DO reading of less than 3 ppm MYACIDE 25G ADDITIONS — Myacide 25G additions should be made daily when drilling in the production interval, in the range of 5 gallons per day. CENTRIFUGE — The centrifuge should be used whenever drill solids become too high and reduction of drill solids in the mud can be more economically done with centrifuging and dilution then just with dumping and diluting. The weight of the drilling fluid alone should not be the determining condition for when to use the centrifuge. Monitor discharge with weighted mud and only run briefly as needed. WEIGHTING UP —All increases in mud weight should be accomplished with barite additions. In the production interval, insure chloride concentration is maintained at 30,000 to minimize the need for barite additions. Draft Copy: Buccaneer Confidential S • Mh SWAG Section 3 — Challenges Potential Problems Hole Cleaning Recommendations ❑ Low-shear rate viscosity"LSRV" values (6 and 3 rpm) has a greater impact on hole cleaning than yield point, in addition to providing barite suspension under dynamic as well as static conditions. Optimize rheology to increase hole cleaning efficiency of fluid (Adjustment of Yield Point and 6 rpm readings). ❑ Rheology and Hydraulics calculations will be run daily and the mud properties will be adjusted as needed to maximize hole cleaning. ❑ Use the highest possible annular velocity to maintain good hole cleaning. Annular velocity provides the upward impact force necessary for good cuttings transport. ❑ Control drill to manage difficult hole cleaning situations. Penetration rates determine the annular cuttings load. Use the PWD data (if available) to determine when it is necessary to stop drilling and circulate the hole. ❑ Keep cuttings concentration less than 5% (by volume) in order to minimize drilling problems. ❑ Sweep Recommendations: ❑ Don't recommend the use of sweeps unless hole conditions dictate. ❑ Hi-Vis sweeps are recommended to use if needed. The volume should be enough to cover at least 200-300 annular volume of the open hole. The recommended rheology of the sweep would have the Yield Point in the 35-40 range and the 6 RPM readings in the 15-20 range. ❑ Weighted sweeps are another option, but Hi-Vis sweeps are preferred. ❑ The need to pump LCM sweeps will be dictated by hole conditions. Bit/BHA Balling Recommendations ❑ Reactive clay formations can absorb high volumes of water and can be extremely sticky and problematic regardless of the degree of inhibition. Drilzone and ScreenKleen should be available as contingency products for treating bit/ BHA balling. ❑ The drilling rate should be controlled to keep the concentration of cuttings in the annulus below 5%. ❑ Short trips should be made as necessary to minimize buildup of cuttings in areas of hole washout. ❑ During trips, the BHA can accumulate cuttings that will potentially ball it. Recommend circulating for a short period to circulate up any formation that may have adhered to the BHA or bit during the trip. Draft Copy: Buccaneer Confidential • • Mil S barn. ...- Section 4 - Surface Interval (0' - 3000') Depth Interval 3000' MD (14.75" OH, 10.75" Casing) Drilling Fluid System Spud Mud Key Products MI GEL, Gelex, Caustic, Desco CF, PolyPac Supreme UL Solids Control Mongoose shakers, desilter, centrifuge Potential Problems Hole Cleaning, Hole Stability, Seepage losses INTERVAL MUD PROPERTIES Depth Plastic Yield API Funnel TVD Mud Wt. Viscosity Point Fluid Loss Viscosity LGS (ft) (ppg) (cp) (Ib/100ft2) (m1/30min) (sec/qt.) pH 3000 8.7 193 15 - 24 >30 <18 60 - 100 8.0-9.0 < 7 ➢ Treat drill water with Soda Ash to reduce hardness. ➢ Build spud mud with 20—25 PPB M-I Gel to +/- 100 sec.qt funnel viscosity. ➢ Lower funnel viscosity to +/- 60 with Desco CF after gravel zone has been drilled. ➢ Add Gelex as needed to maintain sufficient viscosity for hole cleaning. ➢ Increase funnel viscosity if fill on connections begins to occur. ➢ Reduce fluid loss with additions of Polypac Supreme UL prior to running surface casing. ➢ Add 2 — 5 PPB of MIX II to mud system if seepage losses becomes a problem. ➢ Condition mud prior to cementing casing to reduce yield point and gel strengths. Draft Copy: Buccaneer Confidential • • MI SWACO : Hydraulics / Hole Cleaning: 9 Virtual Hydraulics Graphs The following graphs look at the ECD + cuttings at 3000' casing shoe and moving cuttings concentration (MCC) in the annulus while drilling the section. VH SNAPSHOT M.9%J.a _ ©1995-2010M-IL.L.C. Sur face Interval MD:3000 It Operator:Buccaneer 650 GPM TVD:3000 ft La Well Nam e:Kenai apel VIRTUAL HYDRAULICS'SnapSho * Bit Size:14.75 in Location: Kenai Peninsula 5"Drillpipe Dad:2/28/2011 Country:Alaska Depth Geometry Angie Density PV(cP) Va Hole Clean Preasrre Distrltigal (11) MD/IVD Csg ODAD C) QWgei) YP,LSYP(IH100R') (Mm In) Index (7L) (ft) (in 0 45 90 8.8 9.2 9.6 10.0 12 24 36 48 0 80 160 VG G F P Bit=24 Ann=6.4 DS=69.5 100 _ �s 3041 \ , Ell 11111 0 200 1 400 1111 liii 1111 800 I 1111 „II --WaterlAaHHold Mud •,,, 111111 Mud Weight 8.9 'F 1001 1 I Teat Temp 120 °F •1•1 111 System Data 12_00 Flow Rate 650 gal/m In• 1400 11,,, ,II Penetr ation Rate 150 8/r - Rotary d 80 y pee rpm 1600 I„ ■,II, Weight on Bit 15 10001bt 800 III 11111 Bit Nozzles 1.5 in' 11111 ■1111 Pdified et450 Modified P aver Law 2000 Drill String 450 psi 2200 „II N I MI Motor 242 pet „I' „II Bit 156 psi 2400 Bit On/Off 100 psi �,I' 11111 Annulus 42 psi 2600 Surface Equip 49 psi U-Tube Effect 65 psi 2 .. 1111" „II, Total System 1442 psi 60[ ESD ECD 4.5 E_.I I --�■��� 11111 Cag Shoe 9.00 9.14 9.58 6 300(3000 14.750 TD 9.01 9.28 9.70 300, = ESD — PV yd.w4m]2 FL• ECD � YP ��' m(a� 320( ,■•∎= r—r l �:_'..�.-L•:' W°Y�"A• 1'1 ni. am..IH le=1.M..lelo Draft Copy: Buccaneer Confidential • • Mi BWACO VH HOLE CLEANING Mi 8WACO_ , 00995-2010 M-4 L.L.C.` Surface Interval MD:3000 ft Operator:Buccaneer 850 GPM 1VD:3000 ft Well Name:Kenai Loop el In VIRTUAL RIIURAULICS'VRUR* 5"Drillpipe BI`Date::31 2011 Cau y:AI s Peninsula Hole Cleaning Buccaneer Kenai Loop #1 1.00 -. 1 — ROP 10 t ft/M ' — ROP 100 - -- — ROP 150 Mr '-- - ' rr -------- - ROP 200Uhr --- _.. _. -� 0.75 11111 -w__ mil Fair Hde Clearing • .� 0.50.r-_ ■ -------0a =MIL11111111111111111111111111111111111 G_cod Hde_C l ice _ . 025 .11111111111111111111111111111011■■—'. ' .1111111111111111.1=1.1111.11.1 MI Bli very Good Hole Clearing r_ _ 400 500 600 700 800 Flow Rate(gal/min) Draft Copy: Buccaneer Confidential • Mi SWACD .;.. Section 5 — Intermediate Interval (3000 - 8000') Depth Interval 8000' MD (9.875" OH, 7 5/8" Casing) Drilling Fluid System FLOPRO Key Products Duovis/ PolyPac Supreme UL/ KCI / LoTorq / Caustic Soda/ Conqor 404/Sodium Meta Bisulfite/ Klagard Solids Control Mongoose shakers, desilter, centrifuge Potential Problems Hole Cleaning, Hole Stability, Seepage losses INTERVAL MUD PROPERTIES Depth Plastic Yield API TVD Mud Wt. Viscosity Point Fluid Loss LSRV LGS (ft) (ppg) (cp) (Ib/100ft2) (ml/30min) 1 min Cp pH 8,000 9.0-9.6 10 - 16 12 - 18 5 - 7 25- 35000 9— 9.5 < 6 ➢ Use one rig pit for drilling out surface casing. In other rig pits, build new Flo-Pro fluid. ➢ Put corrosion coupon in drill string. ➢ 3% KCL will be used for inhibition with monitoring of excess K+ ion concentration by mud engineer. ➢ If running coals become a problem, treat with a 2-4 PPB addition of Asphasol Supreme. ➢ Torque and stick/ slip can become an issue, use LoTorq at minimum concentration of 2%. ➢ Condition mud prior to running 7 5/8" casing. FloPro Formula Caustic 0.25 ppb DuoVis 1.5 ppb PolyPac Supreme UL 1.5—2.0 ppb 3% KCI 11.0 ppb M-I Wate as needed MIX II as needed for seepage KlaGard 6.0 ppb Draft Copy: Buccaneer Confidential • • Mil SWACO Hydraulics / Hole Cleaning: Virtual Hydraulics Graphs The following graphs look at the ECD + cuttings at 8,000' and moving cuttings concentration (MCC) in the annulus while drilling the section. VH SNAPSHOT __y�9--�,f/sw ... ©1995-2010 Ma L.L.C. Inter m elate Hole MD:8000 it Operator:t3 uccaneer •_n �� akd V4 LLC 7VD:8000 fl Well Nam e:Kenai Loop 41 VIRTUAL RIIRRAUUCS'Sna PS ho * SSO GPM Bit Date: In Location: Kenai Peninsula _ Duht 2128/2011 Country:Alaska Depth Geometry Argo Density PV(dP) Va Hole Clean Pressure Distribution (It) MDJIVD CsgODID r) Qbl l) VP,LSVPpld100R) (11/m in) Index 00 h0 an 0 45 90 10.0 ,0.4 10.8 0 12 24 36 0 400 800 VG G r n Bit=53.5 Arn=15.1 DS=31.4 , 500 paE' III' p 11111 _ _-- 200( l,,, au Drilling Rdd FLOP RO NT 2500 f , Mud Weight 10 IWgal r Nil Test Temp 100 °F F 3000 3000 1� 10 750 System Data F 3000- ) 1K 9.959 -- - -- ill Row Rale 600 gallm In 350r _ __ penetration Rale 80 Pohr 4000 III Rotary Speed 80 rpm .. -_ �,,, BO Weight Nozzles s 10 100012 4500 Bh Nozzles 12-12-12-12-12 500- d---- . III MINN Pressure Losses 12 P owe-Law pm' . Drill String 445 pal 550( _ MWD 250 psi Motor 150 psi 6000 ,,, . Blt 759 psi 850( i,,, -.. Amuhxss 214 psi 7000 II, M.. ll-Tube Eft:tp 46 pal Total System 1990 psi ■ 750( 1!111 ESD ECD *Cut C Shoe 10.08 1990 10.86 .g F 80a<'8000 9.875 1 _ TD 10.07 10.56 10.69•8000 — EsD .. eet-ar+a3x zrc ECD eu•om�IY°I rupta® 4 850( I.wrS n1n�r � 07Trala['SY�I, Draft Copy: Buccaneer Confidential • • MI SWACO VH HOLE CLEANING ��i @�/�/�/��''z .19952010M-L.L.C. Imerm ader Hoe MD:8000 ft Operator:Buccaneer M�Y_ ' _..�1 •wxa Pi LLC TV D:8000 ft W ell Nam e:Kenai LOOP#1 VIRTUALNYDRAUUCSYRDN" ssocPM BltSlze:9.875 In Location: Kenai PeMnsula D ate:2/28@011 Country.Alaska Hole Cleaning 1.00 Buccaneer Kenai Loop #1 �ttc , — ROP 50 ft1 — — ROP 100 Thr — ROP 1500Ar - ROP 20011/Fr Poor Hde Clearing 0.75 `_ M �" 1 1 — Fair Hde Clearing IP A 050 m _ m 2 �"-_._-__. .___ Good Hde Clearing 0.25— - -.....—: i very ofBdttirg - 400 500 600 700 Flow Rate(gal/min) Draft Copy: Buccaneer Confidential • • Mi SWACO Section 6 — Production Interval (8000 - 10500') Depth Interval 10500' MD (6.75" OH /4.5" Liner) Drilling Fluid System FLOPRO Key Products Duovis / PolyPac Supreme UL/ KCI / GSeal / LoTorq / Caustic Soda / Conqor 404/Sodium Meta Bisulfite/ Klagard Solids Control Mongoose shakers, desilter, Centrifuge Potential Problems Hole Stability, Seepage losses INTERVAL MUD PROPERTIES Depth Plastic Yield API TVD Mud Wt. Viscosity Point Fluid Loss LSRV LGS (ft) (ppg) (cp) (Ib/100ft2) (ml/30min) 1 min Cp pH 10500 9.4- 0.4 16 - 25 14 - 20 4 - 6 30 - 35000 9-9.5 < 6 Fluid from previous hole section can be reconditioned and used in this section or new fluid can be made if necessary. y Periodic additions of LoTorq should be made to prevent torque problems ➢ Condition mud prior to running any casing or liner. Draft Copy: Buccaneer Confidential • • Mg SWACO Hydraulics / Hole Cleaning: 7>11 llvdr9, l co Graphs The following graphs look at the ECD + cuttings at 10500' and moving cuttings concentration (MCC) in the annulus while drilling the section. VH SNAPSHOT 1 Vii SWV CO ©1995-2010 M-I L.L.C. Pr«ereon Inter v..o MD:10500 ft Operator:Buccaneer 950 GPM TVD:10500 ft Well Name:Kenai Loop 01 !,VIRTUALHYDRAULICS'SnapShoI* 4"Drillgnc Blt SIee3/12011 Location:o y;Alaska Depth Depth Geometry Angle Dangly PV(cP) Va Hole Clean Presstre Distribution (R) MD/1VD Csg OD/ID (°) (RNA YP,LSYP(16,100ft') ( min) Index (%) (ft) (in 0 45 90 9.8 10.5 11.2 0 10 20 30 40 0 300 800 VG C F P Bit=135 Ann=36.1 DS=48.4 0 1001 2001 11111 _.. "I„ ... _... Dr filing RWa 3001 FLOPRO NT __ 1111 Must Temp 10 lb/gal Teat Temp 120 °F F 4001 Data 111 System � Flaw Rafe 350 gel/m In 5001 P enetr aeon Rate 40 fehr „I Rotary Weighto Bit 90 10m 8001 Weight an Bit 10 10001bt . Blt Nozzles 0.778 In' 700. 1i111 Prewire Losses ■1 8001 eo00 7.825 • 1111111 Modified Power Law Dr 674 psi MWD 675 psi ' 8000 "� 6.878 1 Motor 275 psi 1111 Blt 100 psi BItOn/Off 100 psi 99_. II II Annulus 530 psi Surface Equip 17 psi 1000 ® U-Tube Effect 25 psi _.._..., • ._.. Total System 2485 psi 10500 = q 8.758 ■R�• ESD ECD *Cut 10500 1100 Ceg Shoe 10.10 11.02 11.07 t._._, NI 1.. i TD 10.09 11.06 11.11 - ESC/ Mr= I = HCI I VOI.Wme2 Im•n01�1•- ECD ae4 w� eon le+14mtemmn 1200 ."nr.. i 4 ITual Lam11,,p1 _ ,J.. Pl.- Draft Copy: Buccaneer Confidential • MN BWACQ VH HOLE CLEANING Mf SWACO 01995-2010 Ml L.LC. Pro:Melon Interval MD:10500 11 Operator:Buccaneer •Maeµl uC 7VD:10500 ft Well Name:Kenai Lose#1 * 350 GPM BMSIZa:a.75 In Location: Kanel Peninsula VIRTUAL HYDRAULICS YRDH 4"Drlliplp. Dale:31112011 Country:Alaska Hole Cleaning 1.00 Buccaneer Kenai Loop #1 — ROP 301tRr — ROP 60ftRr - ROP 90 fthy Pox Hde Cluing — ROP 120ftM - - 0.75. • X Fair lids airing lP . m 0.50— m - a ccmHdeClewing X 0.2s Ver y Goad Hole Clearing o 1 I 280 300 320 340 360 380 400 420 440 460 480 500 Flow Rate(gal/min) Draft Copy: Buccaneer Confidential • Mil SIOVACA ., Section 7 — Solids Control Equipment Solids Removal Equipment Recommendations: The recommended SCE for this well are: Mongoose Shakers and Variable Speed Centrifuge Recommended shaker screens sizes are as follows: Interval Recommended Screen Sizes Recommended Screen Sizes (feet) (Shaker 1) (Shaker 2) 0—3000' (Surface) 110—165mesh 110—165 mesh 3000—8000'(Intermediate) 165—230 mesh 165—230 mesh 8000— 10500' (Production) 200—230 mesh 200—230 mesh Draft Copy: Buccaneer Confidential • M p"Bw Appendix 1 —Lost Circulation Recommendations Lost Circulation/Seepage Action plan: ❑ Have sufficient sized LCM on rig to begin loss interval. It takes 40 ppb of sized calcium carbonate to make a filter cake with this plugging material. Use in combination with 5 ppb Sack Black and Mix II at 5 ppb. ❑ Recommend hourly addition of LCM to keep a concentration in the system at all times. The addition of SafeCarb (40,250,500), MIX II (cellulosic fiber), Sack Black (treated gilsonite)and Gseal (sized graphite) can be adjusted as needed to combat losses. ❑ The particle size of the LCM is important. If the expected loss zone particulars are known, then plan to have LCM to offer a particle size distribution so the majority of the LCM has a D50 to cover 1/3 the expected pore throat size and a D90 of cover the pore throat size. The D90 material should make up 10% of the total LCM ppb pumped. ❑ Coordinate spotting and wait time for LCM pills if losses are over 60 bph. ❑ The majority of losses can happen when running casing, circulating to cement and while cementing. The use of Virtual Hydraulics surge calculations is recommended to establish safe casing running speeds. The use of open-float and bypass tools should be considered to help minimize surge pressures to formation. Draft Copy: Buccaneer Confidential S S MI EIVW�C, Appendix 1 — Lost Circulation Recommendations The following proactive lost circulation decision tree can be modified to include any contingencies that Nordaq Energy requires. The flowchart allows for planning of lost circulation material needs. ILosing fluid while drilling Measure rate of loss 1 1 Seepage losses Partial losses Severe losses 5 -20 bbl/hr 20 -60 bbl/hr 60—200 bbl/hr or Total loss of returns 1 If fault related drill across fault If fault related drill across fault If fault related drill across fault 1-1.5 times the length of the 1-1.5 times the length of the 1-1.5 times the length of the throw before treating losses throw before treating losses throw before treating losses i 1 1 Spot 50 ppb pill*: Spot 80 ppb pill: Contact Drilling/ G-SEAL 5 ppb J <,N success G-SEAL 15 ppb No success Asset Engineer SAFE CARB 40 10 ppb l SAFE CARB 40 20 ppb ♦ for approval ppb SAFECARB 250 25 ppb SAFE CARB 250 20 pp SAFECARB 500 20 ppb SAFE CARB 500 10 ppb Sack Black 10 ppb +I Circ sub considered Spot 100 ppb pill Pump thru BHA Circ sub required G-SEAL 15 ppb SAFE CARB 40 30 ppb SAFE CARB 250 30 ppb SAFECARB 500 30 ppb Magma Fiber Reg 10 ppb Squeeze high-fluid-loss pill*: FORM-A-SQUEEZE 80 ppb(2sx/bbl)in water Weighted up to desired density Pump thru BHA suc,es Spot plug: Gunk Squeeze or FORM-A-SET AK Draft Copy: Buccaneer Confidential ,-n `* , Appendix 2 — Minimum Time to Circulate Prior To POOH The model simply predicts the minimum flow rate required for adequate cuttings transport. No predictions are available for the rate at which cuttings are removed. Because the cuttings move more slowly than the circulating mud, it is essential that sufficient bottoms-up are circulated prior to tripping. A SINGLE BOTTOMS-UP IS NEVER ENOUGH! The minimum on bottom circulation time prior to tripping will be influenced by hole size, inclination and flow history (i.e. mud properties and flow rate). These factors will affect the height of any residual cuttings beds. Recent work by Exxon has indicated that the volume of cuttings left behind during normal drilling operations can be considerable. They recommend selection of bits/BHAs with large bypass areas to facilitate tripping out of the hole. Before tripping, monitor the shakers to ensure the cuttings return rate is reduced to an acceptable background level. The figures in the table below are guidelines based on simple slip velocity considerations and field experience: WELL INCLINATION SECTION LENGTH FACTOR RANGE 17-1/2 inch HOLE 12-1/4 inch HOLE 8-1/2 inch HOLE 0°- 10° 1.5 1.3 1.3 10°-30° 1.7 1.4 1.4 30°-60° 2.5 1.8 1.6 60°+ 3.0 2.0 1.7 Procedure 1. Effective length=Section length x section length factor. 2. Circulation time= Effective Length x B/U Measured depth at B Example Since in practice not all of the section back to surface will be deviated at the same angle, the overall minimum circulation time prior to tripping should be apportioned in direct relation to the relative lengths of section at each angle. Draft Copy: Buccaneer Confidential • IVN�IAfAL�,,,. Appendix 3 — HSE Issues Safety Recommendations for Mud System 1. The rig crew should be briefed on the makeup of the drilling fluid and its cost. Safety and care should be used when drilling with any drilling fluid. An M-I Engineer will brief rig crews about drilling fluid and basic safety procedures. 2. MINIMIZE contact with the drilling fluid; although it's non-toxic, it can irritate skin. 3. Wear personal protective equipment when you must work with the mud. Proper equipment includes: a. Safety glasses or goggles b. Hard hat c. Steel toed boots or shoes (recommend rubber for shaker and drill crew) d. Protective clothing (disposable suits or slicker suits) e. Barrier cream f. Rubber gloves Note: As always, follow the rig and operator's safety rules. 4. If you get mud on your skin, wash it off as soon as possible. Do not allow mud to stay in contact with your skin for longer than 30-40 minutes. Do not wash with rig soap! Use GOJO mechanics degreaser or other similar type product. 5. If clothing becomes saturated with drilling fluid, then change your clothes. Do not continue to work in clothes saturated with mud. 6. Designate one rig washing machine for muddy clothes. Do not wash other clothes in this machine. 7. Protective Equipment that has worked well on other jobs: a. Disposable suites: TYVEK BRAND b. Rubber boots: GOODALL BRAND POLY GRIP BOOTS MODEL#A1541 c. Coverall pants: GOODALL ARMOR LITE OVERALL, MODEL#C2522 d. Coverall Jacket: GOODALL ARMOR LITE JACKET, MODEL#C2520 8. Common sense when working with drilling fluid will prevent any safety problems. If you get drilling fluid on you, wash it off. If you have to work with or around the mud, wear your protective equipment. Watch your step and clean up any spills. Draft Copy: Buccaneer Confidential • INN BVVAC ,. Appendix 4 — Recommended Drilling Practices A. Operational Procedures: 1. Stage into open hole several increments breaking circulation each time and circulating for a period of time to get the fluid moving. 2. Idle pumps when beginning circulation to minimize surge pressures 3. Work pipe and rotate while circulating to help break up gel strengths 4. Look for signs of barite sag when staging in the hole. Light mud near the riser section could be indicative of a sag problem. If sag is a problem, the depth increment for staging might have to be shortened to prevent lost circulation problems. Deviated holes will have a tendency to aggravate barite sag problems. These type sections may require higher yield points or low shear rate viscosities than the above recommended ranges to compensate for this tendency. Draft Copy: Buccaneer Confidential r • Appendix 5 — Responsibilities ➢ MI Project Engineer and will coordinate daily between Buccaneer's office, rig, warehouse, and the M-I SWACO field engineers. ➢ Well progress will be monitored to look for any changes, which will improve the efficiency of the operation or avert trouble. ➢ Field Engineers will monitor and supervise product inventory to include re-palletizing any products for shipment to other locations at the end of the well. ➢ Field Engineers will communicate with office personnel (Buccaneer & MI SWACO) for approval of any changes in the mud program (including introduction of new products). ➢ Field Engineers will produce a recap per hole section and at the end of the well based on daily activities. Recap should include any lessons learned that may be used to provide better service on future wells. Lessons learned can include changes in procedures, product additions, equipment usage, and/or utilization of any third party service. Draft Copy: Buccaneer Confidential s 0 ria, -czY KENAI LOOP # 1 BAKER B NGWw69 R HUGHES 4. PROPOSED WELL DETAIL Location : Cook Inlet ENGINEER : RIG : Well: Kenai Loop#1 MSL : RKB : Status: Exploration DEPTH I HOLE I Mud I Grade MD I TVD I SIZE I WT. I Conn. Conductor 16"Size 94#Wt. i II 100" --- Surface L-80 BTCM 10 3/4"Size 45.5#Wt. 9.95" ID 9.794" Drift BHST= 70 Shoe Depth KCL Polymer Mud Pore= 3000 3000 13 1/2" 9.0 FIT=12.5 ppg Intermed. L-80 Casing BTCM KCL Polymer Mud 7 5/8"Size 29.7#Wt. 6.875" ID 6.75" Drift BHST= 140 TOL ZXP Liner Top Packer Pore= 8000 8000 9 7/8" 9.8 FlexLock III Liner Hanger FIT=12.5 ppg Liner L-80 BTCM KCL Polymer Mud 4.5"Size 12.6#Wt . 3.958" ID 3.833" Drift BHST= 180 10,500' TD 6 3/4" 10.3 Pore= . • 11 AL KENAI LOOP # 1 BAKER BUCCANEER HUGHES E N E R G Y DRILL BIT TYPE AND PRICING BY HOLE SIZE Size Type Qty Price Surface 13-1/2" MXL-1 X 1 $31,140 Intermediate ***Rental Bit 9-7/8" HCM505ZX 1 $33,000 Production ***Rental Bit 6-3/4" QD505X 1 $25,000 Total $89,140 ***Price for all Tungsten Carbide Insert Bits and Steel Tooth Bits is based off 2009 price book less 20% ***Damage Beyond Repair (DBR) and Lost In Hole (LIH) Charge for all PDC bits is Rental Price plus $20,000 • 13 1/2" MXL-1X (342.9 mm) 10111 MR OW.,R Of • SEM II sealed bearing package(SEM II)SEM II sealed bearing package is a second generation patented single energizer metal seal system with proprietary(�,,�, wear resistant seal surface to retard seal wear,improve sealing efficiency,and ,`.` 11r provide long life in high RPM motor applications. N l t A _ '.4 1 , - • GX cutting structure technology The cutting structure provides advanced„ S t cone profiles,re-engineered compact tooth shapes,optimized carbide gr• ades, and strategically placed cone savers.Flexible hydraulics:application specific choice of biased or unbiased hydraulic configurations to ensure optimum cone w f ,§ limo cleaning,reduced balling,and managed cone erosion.For long life and high kw M penetration rates. f iF ' • Flexible hydraulics Application specific choice of biased or unbiased t hydraulic configurations to ensure optimum cone cleaning,reduced balling,and .- t managed cone erosion.For long life and high penetration rates • Enhanced OD protection Improved applications of Endura2 motor < , 'z hardfacing,new contoured shirttail geometry,and BOSS pads for near six point stabilization.Provides excellent leg and shirttail wear resistance,for long life in directional drilling applications. ,.‘ PRODUCT SPECIFICATIONS: IADC: 117 rs 's`; Bearing/Seal Package: Journal/Metal Iv 1 Cutting Structure: Inner Row N/A Heel Row N/A Hughes Christensen Gauge Row N/A lowers your toning cost g Gauge Trimmers N/A Tooth Hardfacing: N/A OD Hardfacing: N/A Nozzle Type: Standard ft Center Jet Display: N/A Makeup Torque: 28.0-32.0 klbf-ft(38.0-43.4 kNm) Connection: 6-5/8 API Approx.Shipping Weight: 255 lb(115.7 kg) Reference Part Number: H2045000 OPERATING RECOMMENDATIONS*: Weight On Bit: 20-47.5 klb(9-21 to or kdaN) Rotation Speed: For High Speed Rotary/Motor Applications ESA Ilashes Chri.tc,Isen ©2008 Hughes Christensen Company *The ranges of bit weight and RPM shown are representative of typical operating parameters,but will not necessarily yield optimum bit life or lowest drilling cost.It is not recommended that the upper limits of both weight and RPM be run simultaneously.Contact your local Hughes Christensen representative for recommendations in your area. • • 9 7/8" HCM505ZX „ -oslicm (250.8 mm) • Application Genesis HCM bits are designed for steerable motor applications where toolface control is a primary concern.These i premium PDC bits provide superior toolface control and accurate -roes, placement of quality wellbores at the highest possible rates of penetration. • Genesis Cutters Our designers can choose from a diverse group of ' cutters with a range of diamond table thickness and diamond carbide interfaces for the ideal mix of aggressiveness and durability. 1. -"" • DART Process Each Genesis project receives the attention of a 'B � multi-functional team of design,research,and application(DART) engineers.This process provides an in-depth analysis of the customer application which reduces costly,time-consuming iterations and maximizes the quality of the solution. • Genesis CFD Hydraulics CFD analysis is utilized for every Genesis design and ensures the optimum balance between flow,cutter cooling,and fluid erosion. • Lateral Movement Mitigator(LMM)For improved bit stability, the patented Lateral Movement Mitigator(LMM)technology reduces vibration severity and protects shoulder cutters from impact loads. Reference Photo: 9-7/8 in. (250.8mm) HCM505ZX PRODUCT SPECIFICATIONS: • IADC: M323 Number of Blades: 5 Cutter Quantity(Total,Face): 61,32 Q.` Primary Cutter Size .625 in(15.8 mm) t •';> / Number of Nozzles: 7 t t” Nozzle Type: M7 SP Fixed TFA 0 in2(0 mm2) opt'•- ev Gauge Length 2.5 in(63.5 mm) r .�. Junk Slot Area 11.2 in2(72.2 cm2) �e Bit Breaker: 123-210-007,123-210-008,123-223-333 1c 123-215-860,015-155-039 , , Connection: 6-5/8 API REG Makeup Torque: „' :, 7 1/2"+Bit Sub 37.1 -42.4 kft-lb(50.3-57.5 kNm) Reference Part Number: N4036 Status: 0 OPERATING RECOMMENDATIONS*: Hydraulic Flow Rate: 400-900 gpm(1500-3400 1pm) Rotation Speed: For Steerable Motor Applications Max.Weight On Bit: 34 klb(15 to or kdaN) ill NUM NUMMI linnhe+t Chrhtenu n ©2009 Hughes Christensen Company *The ranges of bit weight and RPM shown are representative of typical operating parameters,but will not necessarily yield optimum bit life or lowest drilling cost.It is not recommended that the upper limits of both weight and RPM be run simultaneously.Contact your local Hughes Christensen representative for recommendations in your area. 4111 111)6 3/4" ft5O5X '' ! (171.5 mm) P • Application Quantec PDC bits combine the very latest in HCC bit technology:Best in Class cutter technology,superior stability and f hydraulic efficiency together with a design philosophy that is tailored to your drilling objectives.Designs are customized to achieve continual performance improvement in the toughest applications. • Diamond Volume Management Diamond Volume Management(DVM) designs ensure that neither ROP or stability is compromized in the bit design.Profile and cutter placement are tailored to the application in order to achieve the longest run length at high overall ROP. • Quantec Cutters Quantec cutters offer the very latest in technology. Optimized diamond feed and engineered non-planer interfaces combine to give superior wear resistance and outstanding toughness.Speak to your HCC rep for the cutter best suited to your application. • Gauge Protection High quality TSP material is utilized to give superior wear resistance and thus long bit runs.Hex TSP material allows tighter packing for ultra abrasive environments • SmoothCut Technology Patented depth-of-cut control technology provides smoother,more stable drilling by redistributing peak loads when drilling through interbedded formations. Reference Photo: 6-3/4 in. (171.5mm)Q505X PRODUCT SPECIFICATIONS: IADC: M323 P• Number of Blades: 5 Cutter Quantity(Total,Face): 38,19 141s66: /- Primary Cutter Size .625 in(15.8 mm) Number of Nozzles: 5 • Nozzle Type: MSP Fixed TFA 0 in2(0 mm2) ow i/ 4 r Gauge Length 1.5 in(38.0 mm) Junk Slot Area 8 in2(51.6 cm2) " ♦ Bit Breaker: 123-223-323,015-154-040, 123-202-125 • Connection: 3-1/2 API REG .r1 Makeup Torque: 4 1/8"Bit Sub 5.2-5.7 kft-lb(7.1-7.7 kNm) 4 1/4"Bit Sub 6.3-7.0 kft-lb(8.5-9.5 kNm) 4 1/2"+Bit Sub 7.7-8.5 kft-lb(10.4-11.5 kNm) Reference Part Number: N6720 Status: P OPERATING RECOMMENDATIONS*: Hydraulic Flow Rate: 250-550 gpm(950-2100 1pm) Rotation Speed: For Rotary and Motor Applications Max.Weight On Bit: 20 klb(9 to or kdaN) Miss Ilut;he+( h ri.totwn ©2009 Hughes Christensen Company *The ranges of bit weight and RPM shown are representative of typical operating parameters,but will not necessarily yield optimum bit life or lowest drilling cost.It is not recommended that the upper limits of both weight and RPM be run simultaneously.Contact your local Hughes Christensen representative for recommendations in your area. le ULTRA■ 6 3/4" MX-1 (171.5 mm) Ikk32gire • Single Energizer Seal&Bearing System(SEM)UltraMax utilizes a patented single energizer metal sealing system(SEM)with a more robust design to provide consistency and reliability in high speed drilling and other demanding f j applications. ' ai t, ' , • XLX Steel Tooth Package Endura II Hardfacing,Super Thick Tooth Crest .7. `t, Hardfacing,LX&XL Hardfacing Features,Bi-Metallic Super Gauge, -� A • .,,,f Enhanced Spearpoint Protection t it ty •. C ' ' • Grease&Lubrication System(Equalizer)New grease formulation better t t"'' 1 ' lubricates the seal faces.Improved compensation system increases reliability. r( • Anti-Mud Packing System(Excluder)A secondary static seal eliminates the t"' _ i t detrimental effects of mud packing,creating a seal between the mud and the ;1 ; 7t ,t seal package.Also working against the effects of mud packing are the Mud t Wiper and the Cone Backface Groove,which work in tandem to wipe away packed-in mud. Y` ' • Clean Sweep Hydraulics Nozzles are positioned closer to the cones with their fluid streams directed toward areas where bit balling occurs.The Clean Sweep high velocity core strikes heel and adjacent heel teeth and sweeps the critical bit offset space on the backside of the cutter. PRODUCT SPECIFICATIONS: r IADC: 117 Bearing/Seal Package: Journal/Metal 4 Cutting Structure: EA go-- Inner Row Super Thick +V}t t� '+`"t Heel Row Bi-Metallic II • 5E Bering Gauge Row Super Gauge Gauge Trimmers Chisel 5r, Tooth Hardfacing: Endura II 11011 lir OD Hardfacing: Motor Nozzle Type: FF emu.it Center Jet Display: N/A x * k Makeup Torque: 7.0-9.0 klbf-ft(9.5- 12.2 kNm) GI Connection: 3-1/2 API REG Approx.Shipping Weight: 45 lb(20.5 kg) +Rw.. Reference Part Number: L661A1 OPERATING RECOMMENDATIONS*: Weight On Bit: 12.5-27.5 klb(5- 12 to or kdaN) Rotation Speed: For High Speed Rotary/Motor Applications NM Ilughcr C'hrirt,n en ©2005 Hughes Christensen Company *The ranges of bit weight and RPM shown are representative of typical operating parameters,but will not necessarily yield optimum bit life or lowest drilling cost.It is not recommended that the upper limits of both weight and RPM be run simultaneously.Contact your local Hughes Christensen representative for recommendations in your area. ■ • i EVAil Proposal No: 1001141957C Renaissance Alaska, LLC / Buccaneer Kenai Loop#1 Kenai County, Alaska March 18, 2011 Well Proposal Prepared for: Prepared by: Andy Rike Joshua Herald VP Operations Field Engineer Renaissance Alaska, LLC/Buccaneer Kenai, Alaska Bus Phone: 713-468-1678 Bus Phone: 907-776-4084 Mobile: 713-703-5175 Email: Joshua.Herald @bjservices.com Mobile: 907-398-8303 POWERVISION® POW ERPRO • POWER IRA \ • POW- I: R1, 1 \ Service Point: Service Representatives: Kenai Rod Edwards Bus Phone: (907)776-4084 Account Manager (907)659-2329 Kenai, Alaska Fax: (907)776-4087 Bus Phone: 907-349-6518 Mobile: 907-229-6536 Gr4105 Operator Name: Renaissance Alaska, LLC/Buccaneer Well Name: Kenai Loop#1 Job Description: 10.75 Surface Casing 12.0 ppg Date: March 18, 2011 Proposal No: 1001141957C JOB AT A GLANCE Depth (TVD) 3,000 ft Depth(MD) 3,000 ft Hole Size 13.5 in Casing Size/Weight 10 3/4 in, 45.5 lbs/ft Pump Via Total Mix Water Required 9,108 gals Pre-Flush Mud Clean II 40 bbls Density 8.4 ppg Cement Slurry Type 1 12ppg 964 sacks Density 12.0 ppg Yield 2.30 cf/sack Displacement Drilling Fluid 281 bbls Report Printed on March 18,2011 12:51 PM Page 1 Gr4109 STIMULATION o CEMENTING o COMPLETION SERVICES o SERVICE TOOLS o COILED TUBING o PRODUCTION CHEMICALS o CASING AND TUBING RUNNING SERVICES o PIPELINE SERVICES o WELL CONTROL o CHEMICAL SERVICES Operator Name: Renaissance Alaska, LLC/Buccaneer Well Name: Kenai Loop#1 LIIIPI .!ji Job Description: 10.75 Surface Casing 12.0 ppg Date: March 18, 2011 Proposal No: 1001141957C WELL DATA ANNULAR GEOMETRY ANNULAR I.D. DEPTH(ft) (in) MEASURED I TRUE VERTICAL 15.124 CASING I 100 I 100 13.500 HOLE I 3,000 I 3,000 SUSPENDED PIPES DIAMETER (in) WEIGHT DEPTH(ft) O.D. I.D. (Ibs/ft) MEASURED I TRUE VERTICAL 10.750 9.950 1 45.5 3,000 I 3,000 1 Float Collar set @ 2,920 ft Mud Density 9.00 ppg Mud Type Brine Based Est. Static Temp. 89 ° F Est. Circ.Temp. 83 ° F VOLUME CALCULATIONS 100 ft x 0.6173 cf/ft with 0% excess = 61.7 cf 2,900 ft x 0.3637 cf/ft with 100% excess = 2109.6 cf 80 ft x 0.5400 cf/ft with 0% excess = 43.2 cf(inside pipe) TOTAL SLURRY VOLUME = 2214.5 cf = 395 bbls Report Printed on March 18,2011 12:51 PM Page 2 Gr4115 STIMULATION o CEMENTING o COMPLETION SERVICES o SERVICE TOOLS o COILED TUBING o PRODUCTION CHEMICALS CASING AND TUBING RUNNING SERVICES o PIPELINE SERVICES o WELL CONTROL o CHEMICAL SERVICES S Operator Name: Renaissance Alaska, LLC/Buccaneer Well Name: Kenai Loop#1 Le—Jig Job Description: 10.75 Surface Casing 12.0 ppg Date: March 18, 2011 Proposal No: 1001141957C FLUID SPECIFICATIONS Pre-Flush 40.0 bbls Mud Clean II @ 8.4 ppg VOLUME VOLUME FLUID CU-FT FACTOR AMOUNT AND TYPE OF CEMENT Cement Slurry 2215 / 2.3 = 964 sacks Type I Cement+ 15% bwoc LW-5E, 100#Carton +20% bwoc MPA-1 +0.05% bwoc Static Free+0.6% bwoc CD-32+ 1 gals/100 sack FP-6L+83.8% Fresh Water Displacement 280.8 bbls Drilling Fluid CEMENT PROPERTIES SLURRY NO.1 Slurry Weight (ppg) 12.00 Slurry Yield (cf/sack) 2.30 Amount of Mix Water (gps) 9.45 Amount of Mix Fluid (gps) 9.46 Report Printed on March 18,2011 12:51 PM Gr4129 Page 3 STIMULATION o CEMENTING o COMPLETION SERVICES o SERVICE TOOLS o COILED TUBING o PRODUCTION CHEMICALS CASING AND TUBING RUNNING SERVICES o PIPELINE SERVICES o WELL CONTROL o CHEMICAL SERVICES Operator Name: Renaissance Alaska, LLC/Buccaneer rii • Well Name: Kenai Loop#1 ;!_ Job Description: 7.625 Intermediate Casing 13.5& 15.8ppg Date: March 18, 2011 Proposal No: 1001141957C JOB AT A GLANCE Depth(TVD) 8,000 ft Depth (MD) 8,000 ft Hole Size 9.875 in Casing Size/Weight 7 5/8 in, 29.7 lbs/ft Pump Via Total Mix Water Required 4,467 gals Weighted Spacer Seal Bond Spacer 30 bbls Density 9.5 ppg Lead Slurry Lead 13.5 ppg 371 sacks Density 13.5 ppg Yield 1.83 cf/sack Tail Slurry Tail Slurry 15.8 ppg 213 sacks Density 15.8 ppg Yield 1.16 cf/sack Displacement Drilling fluid 364 bbls Report Printed on March 18,2011 12:51 PM Page 6 Gr4109 STIMULATION o CEMENTING o COMPLETION SERVICES o SERVICE TOOLS o COILED TUBING o PRODUCTION CHEMICALS o CASING AND TUBING RUNNING SERVICES o PIPELINE SERVICES o WELL CONTROL o CHEMICAL SERVICES Operator Name: Renaissance Alaska, LLC/Buccaneer Well Name: Kenai Loop#1 Lij Job Description: 7.625 Intermediate Casing 13.5& 15.8ppg Date: March 18, 2011 Proposal No: 1001141957C WELL DATA ANNULAR GEOMETRY I ANNULAR I.D. DEPTH(ft) (in) MEASURED TRUE VERTICAL 9.950 CASING I 3,000 I 3,000 9.875 HOLE I 8,000 I 8,000 SUSPENDED PIPES DIAMETER (in) WEIGHT DEPTH(ft) O.D. I.D. (Ibslft) MEASURED TRUE VERTICAL 7.625 6.875 29.7 8,000 I 8,000 I Float Collar set @ 7,920 ft Mud Density 9.50 ppg Mud Type Brine Based Est. Static Temp. 145 ° F Est. Circ.Temp. 118 ° F VOLUME CALCULATIONS 2,250 ft x 0.2148 cf/ft with 40% excess = 677.0 cf 750 ft x 0.2148 cf/ft with 40% excess = 225.8 cf 80 ft x 0.2578 cf/ft with 0% excess = 20.6 cf(inside pipe) TOTAL SLURRY VOLUME = 923.5 cf = 165 bbls Report Printed en: March 18,2011 12:51 PM Gr4115 Page 7 STIMULATION o CEMENTING o COMPLETION SERVICES o SERVICE TOOLS o COILED TUBING o PRODUCTION CHEMICALS CASING AND TUBING RUNNING SERVICES o PIPELINE SERVICES o WELL CONTROL o CHEMICAL SERVICES • Operator Name: Renaissance Alaska, LLC/Buccaneer Well Name: Kenai Loop#1 Job Description: 7.625 Intermediate Casing 13.5& 15.8ppg Date: March 18, 2011 Proposal No: 1001141957C FLUID SPECIFICATIONS Weighted Spacer 30.0 bbls Seal Bond Spacer+64 lbs/bbl Barite-Sacked @ 9.5 ppg VOLUME VOLUME FLUID CU-FT FACTOR AMOUNT AND TYPE OF CEMENT Lead Slurry 677 / 1.83 = 371 sacks Class G Cement+ 10% bwoc BA-90+ 0.05% bwoc Static Free+2.5% bwoc BA-56+ 0.15% bwoc R-3+0.5% bwoc EC-1 +0.5% bwoc CD-32+0.1% bwoc ASA-301 + 1 gals/100 sack FP-6L+0.5%bwoc Sodium Metasilicate+81.7% Fresh Water Tail Slurry 246 / 1.16 = 213 sacks Class G Cement+0.05% bwoc Static Free+0.2%bwoc R-3+0.5% bwoc EC-1 + 0.6% bwoc FL-63+0.3% bwoc CD-32+ 1 gals/100 sack FP-6L+43.7% Fresh Water Displacement 363.6 bbls Drilling fluid CEMENT PROPERTIES SLURRY SLURRY NO.1 NO.2 Slurry Weight (ppg) 13.50 15.80 Slurry Yield (cf/sack) 1.83 1.16 Amount of Mix Water (gps) 9.21 4.93 Amount of Mix Fluid (gps) 9.22 4.94 Report Panted on March 18,201112:51 PM Page Gr4129 STIMULATION o CEMENTING o COMPLETION SERVICES o SERVICE TOOLS o COILED TUBING o PRODUCTION CHEMICALS CASING AND TUBING RUNNING SERVICES o PIPELINE SERVICES o WELL CONTROL o CHEMICAL SERVICES r 1 • Operator Name: Renaissance Alaska, LLC/Buccaneer Well Name: Kenai Loop#1 Job Description: 4.5 Liner 15.8 ppg Date: March 18, 2011 Proposal No: 1001141957C JOB AT A GLANCE Depth(TVD) 10,500 ft Depth(MD) 10,500 ft Hole Size 6.75 in LinerSize/Weight 41/2in, 12.6 lbs/ft Pump Via Casing 4 1/2"O.D. (3.958" .I.D) 12.6# Total Mix Water Required 2,211 gals Weighted Spacer Seal Bond Spacer 40 bbls Density 10.5 ppg Cement Slurry Cement Slurry 15.8 ppg 49 acks Density 1-5188 ppg Yield 1.16 cf/sack Displacement Drilling fluid 159 bbls Density 10.0 ppg Report Peeled on March 18,2011 12:51 PM Page 11 Gr4109 STIMULATION o CEMENTING o COMPLETION SERVICES o SERVICE TOOLS o COILED TUBING o PRODUCTION CHEMICALS o CASING AND TUBING RUNNING SERVICES o PIPELINE SERVICES o WELL CONTROL o CHEMICAL SERVICES P Operator Name: Renaissance Alaska, LLC/Buccaneer Well Name: Kenai Loop#1 Job Description: 4.5 Liner 15.8 ppg Date: March 18, 2011 Proposal No: 1001141957C WELL DATA ANNULAR GEOMETRY ANNULAR I.D. DEPTH(ft) (in) MEASURED I TRUE VERTICAL 6.875 CASING I 8,000 I 8,000 6.750 HOLE 10,500 I 10,500 SUSPENDED PIPES DIAMETER (in) WEIGHT I DEPTH(ft) O.D. ( I.D. (Ibs/ft) MEASURED I TRUE VERTICAL 4.500 I 3.958 12.6 10,500 � 10,500 1 Drill Pipe 4.5(in)OD, 3.958(in) 7,800 ft ID, 12.6(Ibs/ft)set @ Depth to Top of Liner 7,800 ft Float Collar set @ 10,420 ft Mud Density 10.00 ppg Est.Static Temp. 170 ° F Est.Circ.Temp. 130 ° F VOLUME CALCULATIONS 200 ft x 0.1473 cf/ft with 0% excess = 29 cf 2,500 ft x 0.1381 cf/ft with 40% excess = 483 cf 80 ft x 0.0854 cf/ft with 0% excess = 7 cf (inside pipe) TOTAL SLURRY VOLUME = 520 cf 93 bbls Report Printed on March 18 2011 12:51 PM Page 12 Gr4117 STIMULATION o CEMENTING o COMPLETION SERVICES o SERVICE TOOLS o COILED TUBING o PRODUCTION CHEMICALS CASING AND TUBING RUNNING SERVICES o PIPELINE SERVICES o WELL CONTROL o CHEMICAL SERVICES i • Operator Name: Renaissance Alaska, LLC/Buccaneer Well Name: Kenai Loop#1 Job Description: 4.5 Liner 15.8 ppg Date: March 18, 2011 Proposal No: 1001141957C FLUID SPECIFICATIONS Weighted Spacer 40.0 bbls Seal Bond Spacer+ 119 lbs/bbl Barite- Sacked @ 10.5 ppg VOLUME VOLUME FLUID CU-FT FACTOR AMOUNT AND TYPE OF CEMENT Cement Slurry 520 I 1.16 = 449 sacks Class G Cement+0.05% bwoc Static Free+0.3% bwoc R-3+0.5% bwoc EC-1 +0.6% bwoc FL-63+0.3%bwoc CD-32+ 1 gals/100 sack FP-6L+43.7% Fresh Water Displacement 158.6 bbls Drilling fluid @ 10 ppg CEMENT PROPERTIES SLURRY NO.1 Slurry Weight (ppg) 15.80 Slurry Yield (cf/sack) 1.16 Amount of Mix Water (gps) 4.93 Amount of Mix Fluid (gps) 4.94 Report Printed on March 18,2011 12:51 PM Gr4129 Page 13 STIMULATION o CEMENTING o COMPLETION SERVICES o SERVICE TOOLS o COILED TUBING o PRODUCTION CHEMICALS CASING AND TUBING RUNNING SERVICES o PIPELINE SERVICES o WELL CONTROL o CHEMICAL SERVICES • • Operator: Renaissance Alaska, LLC/Buccaneer Well Name: Kenai Loop#1 Date: March 18, 2011 Proposal No: 10011419570 PRODUCT DESCRIPTIONS ASA-301 Additive used to reduce or eliminate free water and settling in cement slurries. BA-56 A gas migration additive that controls fluid loss, limits free water and provides excellent solids support. It is functional at low to moderate temperatures ranges. BA-90 An non-compacted silica fume that produces high compressive strength, low density cement slurries which prevent annular gas migration by reducing slurry permeability. It can be used in the low to high temperature ranges. Barite-Sacked A naturally occuring mineral (Barium Sulfate). It is widely used as a weighting material in cement spacers and occasionally in cement slurries. It can yield a slurry density in excess of 19 lbs/gal. CD-32 A patented, free-flowing,water soluble polymer that is an efficient and effective dispersant for primary and remedial cementing. Class G Cement Intended for use as a basic cement from surface to 8000 ft as manufactured, or can be used with accelerators and retarders to cover a wide range of well depths and temperatures. EC-1 A proprietary product that provides expansive properties and improves bonding at low to moderate temperatures. FL-63 A non-retarding, non-viscosifying fluid loss additive particularly suited for use with coil tubing and/or close tolerance liner cementing. FL-63 is effective from low to high temperatures. Concentrations of 0.2%to 1.0% BWOC are typical. FP-6L A clear liquid that decreases foaming in slurries during mixing. MPA-1 MPA-1 is a fine white pozzolanic type powder used to enhance various cement properties. These properties include: Enhanced Compressive Strength Development, Improved Sulfate Resistance, Increased Tensile and Flexural Strength,and Gas Control. MPA-1 is functional over a broad temperature range, and can be used in foamed lightweight, normal, and heavyweight cement designs. Concentrations range from 1 to 30% BWOC. Mud Clean II A water-base mud wash designed for use ahead of cement slurries to aid in mud and drilling debris removal and to prevent contamination of the cement slurry. It should be used only when water-base mud is used. Report Printed on March 18,2011 12:51 PM Page 16 Gr4163 STIMULATION o CEMENTING o COMPLETION SERVICES o SERVICE TOOLS o COILED TUBING o PRODUCTION CHEMICALS o CASING r • Operator: Renaissance Alaska, LLC/Buccaneer Well Name: Kenai Loop#1 Date: March 18, 2011 AL: Proposal No: 1001141957C PRODUCT DESCRIPTIONS (Continued) R-3 A low temperature retarder used in a wide range of slurry formulations to extend the slurry thickening time. SealBond Spacer Forms a non invasive seal to prevent filtrate invasion into the producing formation. Sodium Metasilicate An accelerator used to decrease the thickening time of cement slurries. Static Free An anti-static additive used to prevent air entrainment due to agglomerated particles. Can be used in Cementing and Fracturing operations to aid in the flow of dry materials. Type I Cement A Portland cement designed for use to 6,000 Ft. Type I cement can be modified for use at greater depths. Type I is moderately resistant to sulfate attack. Report Printed on March 18,2011 12:51 PM Page 17 Gr4163 STIMULATION o CEMENTING o COMPLETION SERVICES o SERVICE TOOLS o COILED TUBING o PRODUCTION CHEMICALS o CASING • • CITY OF KENAI DRILLING PERMIT The CITY OF KENAI, 210 Fidalgo Avenue.Kenai, Alaska 99611. for consideration and pursuant to,and in conformity with KMC 5.35. incorporated herein by reference. and in accordance with the request by letter of application from BUCCANEER ALASKA OPERATIONS, LLC,952 Echo Lane. Suite 420. Houston. Texas 77024 (Permittee).and dated January 4,2011,does hereby issue this drilling permit for an oil and/or gas well (Kenai Loop Well#1)effective on the date of execution hereof. A. WELL LOCATION:T6N, RI 1 W. Section 33. Seward Meridian. NW 112 lying NW of Kenai Spur Highway excluding Baron Park Subdivisions No. 7 & 12 (as described in Attachment"A") B. LENGTH OF PERMIT: The term of this Permit shall be for a period of one (1)year from the date of the permit and as long thereafter as Permittee is engaged in drilling operations with no cessations of such operations for more than 120 days. or as oil or gas is produced in commercial quantities from the well drilled pursuant to such permit. provided that, if at any time after discovery of oil or gas, the production thereof in commercial quantities shall cease.the term shall not terminate if Permittee commences additional reworking operation within 120 days or within any extended periods granted by the City Manager pursuant to KMC 5.35.060. Termination of this Permit is further governed by KMC 5.35.070. C. CONDITIONS:Conditions of KMC 5.35 are hereby incorporated herein by reference as conditions of this Permit. This Permit is expressly conditioned upon Permittee conducting all drilling and other operations in accordance with the best practices of the reasonably prudent operator and with all laws, rules, and regulations of any regulatory body having jurisdiction over its operations. D. TYPE OF DERRICK: Double. 102' mast. E. DEPTH OF WELL: The total proposed depth of the well is 10,500 feet true vertical depth. F. INVALIDITY: In the event any term or condition of this Permit is determined to be invalid,this permit shall, as to its remaining terms and conditions. remain in full force and effect. • • Cl , OF EN )I IA 4 .4 Rick ' . och City Manager BUCCANEER ALASKA OPE' —IO ' • By: A Pl. Title. T ice- r�t. and & Business Development STATE OF ALASKA ) )ss THIRD JUDICIAL DISTRICT ) THIS IS TO CERTIFY that on this3 / day of January. 2011. the foregoing instrument was acknowledged before me by RICK R. KOCH. City Manager of the City of Ken Alaska. an Alaska home rule municipality. on behalf of the City. if ' �t�`1 t J.CA t"•C ``?NY.• pTARy:p i otary Publi f• . Alaska z • My Commission pUg�,�G Expires: • �..II ' J'-., I)l*j)i}110 STATE OF4 ATX& ) 1 4-46i.rris C_DL.,, 4 )ss THIS IS TO CERTIFY that on this ?$ 'day of January. 2011. the foregoing instrument was acknowledged before me by MARK R. LANDT. of Buccaneer Alaska Operations. LLC. an Alaska limited liability company. on behalf of the company. Notary Public xa.s MY COMMON O ) Notary Public for#mss 'a 1-u�cr�5 ' MK Ma My Commission Expires: A-p+-d I S/ d.t.:13 . Map to Well Site . s. . ..., ., .... ..... . , %.„,„.,...,:...„.,,-. fiiiiii ,.............., . ,. ....t.,....„....,..... :1 ,,, - , ,,, .-;„ ,,,,, _. ..--. ... - 4 -'' ' , - 'i ' '" ' t.."-‘s ..,,l' ' 1'---- 'at'.•1.•'-I:--.:'• t, . •‘`v 4'1 '• `.. ,"1-`.7„.,::,t, 4'',1.'. 1. 1:',.:,„,:.:...5......;..- -... 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''..fij,*.1 ••-i ft.I.••••''.4:-•-•'• ••••• %.,,,i 4.• •'•rs •r: '1 • ff.,'"'-'14 1.1' i ...7 4. ..-7-",..'" -1 -4.,.,',`"•:--.-424"••••: • • 2:''• •:•ti• . r tIT 1 ' ‘''';'',`I.;•'... -' ....:4':.'-.);7,-.4 , ''. tev.",'4.._ - ' ,z.:..,, 4 up ,b Pf ? , •._ •.-----IL.....--i--:t.„'.----1:,---itvi..-...; .. ----ill ..- 1 •, I 4/ h. / ....-....*:4,-, • ..- -- _ --_-,.7._- -,(7-,, . -.4-,..--;_,- ; . 0 1 ..: -s-‘-•••••,,,'.--,-...%.-..-.A ' - ' ' , -.• -.41:1*-5‘..---•_11--; :' :.--..7.''',- liP;1 •'' - ". "-' 4I..1 ..../- , - ', • • - • - Directions: From Walmart in Kenai, go north on Marathon Road approx 1/2 mile to drillsite access road on right. Check in with security guard at gate to drillsite. OVERSIZED DOCUMENT INSERT This file contains one or more oversized documents. These materials may be found in the original hard file or check the parent folder to view it in digital format. TRANSMITTAL LETTER CHECKLIST WELL NAME )C,EJ✓4/ G��i4) Of PTD# .,::•?Il O?4,2? Development Service ✓ Exploratory Stratigraphic Test Non-Conventional Well FIELD: e—x/e e.9.7 'e/- POOL: -75-47.1/..z,. i►/de i/YdZ) Circle Appropriate Letter/Paragraphs to be Included in Transmittal Letter CHECK ADD-ONS WHAT (OPTIONS) TEXT FOR APPROVAL LETTER APPLIES MULTI LATERAL The permit is for a new wellbore segment of existing well (If last two digits in Permit No. ,API No. 50- - - • API number are between 60-69) Production should continue to be reported as a function of the original API number stated above. PILOT HOLE In accordance with 20 AAC 25.005(t), all records, data and logs acquired for the pilot hole must be clearly differentiated in both well name ( PH) and API number (50- - - ) from records, data and logs acquired for well SPACING The permit is approved subject to full • pliance with 20 AAC EXCEPTION 25.055. Approval to perforate an. l.rod / in'ect is contingent upon issuance of a conservation order approving a spacing exception. �ver...014/t22".4iC. OPe &S,LLG assumes the liability of any protest to the spacing exception that may occur. DRY DITCH All dry ditch sample sets submitted to the Commission must be in SAMPLE no greater than 30' sample intervals from below the permafrost or from where samples are first caught and 10' sample intervals through tar:et zones. Non-Conventional Please note the following special condition of this permit: Well production or production testing of coal bed methane is not allowed for (name of well) until after (Company Name) has designed and implemented a water well testing program to provide baseline data on water quality and quantity. (Company Name) must contact the Commission to obtain advance approval of such water well testing program. Rev: 1/11/2008 4 0 Li]0 U) 0) 0 0 o. (1) co _a _ 2 0 , ..,.., .c O , o -ci, O a) to 2.) ' -0 . 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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 infor�rration. c1 ► - 0 (. .3 : 1 -; Kenai Loop 1 Kenai Borough, Alaska April 14 to May 08, 2011 f a . 1 1 ti I 11111101 ,� 1 `, w i ii IIII < .7y II� .�,-4r4 �4 CIC _ t,till S < i r �� Provided by: CANRIG I)KII I I', . 114II\“ I,u.\ Ln.. Approved by: David Doherty Compiled by: Craig Silva John Lundy Distribution Date: June 13, 2011 1 CANRIG i 1 = 1 • Kenai Loop#1 TABLE OF CONTENTS 1 MUDLOGGING EQUIPMENT& CREW 3 1.1 Equipment Summary 3 1.2 Crew 3 2 GENERAL WELL DETAILS 4 2.1 Well Objectives 4 2.2 Well Resume 4 2.3 Hole Data 5 3 GEOLOGICAL DATA 6 3.1 Lithology Review 6 3.2 Sampling Program 20 4 DRILLING DATA 27 4.1 Daily Activity Summary 27 4.2 Surveys 35 4.3 Bit Record 46 4.4 Mud Record 47 4.5 Drilling Progress Chart 49 5 DAILY REPORTS 50 Enclosures: 2"/100' Formation Log (MD) 2"/100' Combo Log (MD/TVD) 2"/100' Gas Ratio Log (MDITVD) 2"/100' Drilling Dynamics Log (MD) Final Well Data on CD 2 CANRIG : 1 � Kenai Loop#1 1 MUDLOGGING EQUIPMENT & CREW 1.1 Equipment Summary Parameter Equipment Type/Position Total Comments Downtime Computer—Drill Floor Monitor Labersav 0 Computer—Pit Monitor Azonix 0 Computer for Company Man Rigwatch Remote(HP Compaq) 0 Computer for Tool Pusher Rigwatch Remote(HP Compaq) 0 Computers for Mudloggers(2) Data editing, Rigwatch Master, and Rigwatch Remote(all HP Compaq) Air-Driven Agitator(mounted in Used for possum belly) surface hole, Ditch gas 0 QGM used for Flame ionization total gas& chromatography. intermediate/ production. Hook Load/Weight on bit Drilling Line Sensor on Dead Man 0 Mud Flow In Derived from Strokes/Minute and 0 Pump Output Mud Flow Out Flow line Sensor 0 Pit Volumes, Pit Gain/Loss 4 Ball-Float sensors. 2 Sonar 0 sensors Pump Pressure Standpipe Transducer 0 Pump Stroke Counters (3) 3 Digital Micro switches 0 Rate of Penetration Depth Encoder Sensor 0 RPM Feed from Warrior Top Drive 0 Torque Feed from Warrior Top Drive 0 1.2 Crew Mud Logging Unit Type: Arctic Mud Logging Unit Number: ML030 Mud Loggers *1 *2 Years Days Sample Catchers Years Days Technician Days John Lundy 19 4/12 Greg Hammond <1 18 Steve Forrest 2 Ralph Winkelman 20 36 Craig Silva 32 40 *1 Years experience as Mudlogger *2 Days at wellsite between rig up and rig down of logging unit. 3 CANRIG 2 GENERAL WELL DETAILS 2.1 Well Obiectives The objective of Kenai Loop 1 is to drill and log a multiple zone gas exploratory well in the Kenai Peninsula, with a minimum of hole problems or other concerns. 2.2 Well Resume Operator: Buccaneer Alaska Operations, LLC Well Name: Kenai Loop 1 Field: Kenai Peninsula Exploration County: Kenai Borough State: Alaska Company Representatives: Larry McAllister, Larry Driscoll, Bob Davis, Thor Kellestad Location: Surface Coordinates 1888'FNL 1037'FWL, Sec 33 TO6N R11 W SM, X=279518.13 Y=2402268.55 Ground Elevation 134.00'AMSL Rotary Table Elevation 155.00'AMSL Classification: Exploratory(Gas) API#: 50— 133—20595—00—00 Permit#: 211 —043 Activity Code: AFE# KL-0101 Rig Name/Type: Glacier#1 /Land/Double Spud Date April 14, 2011 Total Depth Date: May 8, 2011 Total Depth 10680' Primary Targets Beluga/Tyonek Primary Target Depths Multiple, Unknown Discovery Zones Total Depth Formation: Tyonek Completion Status: LWD-MWD Services. Baker Hughes Inteq Directional Drilling None Wireline Logging Services Baker Atlas Drilling Fluids Service MI Swaco CANRIG Logging Geologists: John Lundy, Craig Silva, Ralph Winkelman CANRIG Sample Catchers: Greg Hammond 4 CANRIG Kenai Loop#1 2.3 Hole Data Maximum Depth Mud Shoe Depth LOT Hole TD Dev. Casing (ppg) Section MD Form Weight (°inc) (dia") MD TVD (ft) TVD(ft) (PPg) (ft) (ft) (Conductor) 16" 138 138 Recent 8.8 0.00 131/2' 3075 3072.67 Sterling 8.8 4.50 10'/" 3055' 3052.73 15.0 9%" 8050' 8046.76 Beluga 9.3 1.82 7 5/8" 8024' 8020.77 13.5 FIT 6'/" 10680 10667.56 Tyonek 11.4 5.51 4'/2" 10678 10665.57' N/A Note: Hanger for 4'/" production liner was set at 7891'. 5 CAN/IG 3 GEOLOGICAL DATA 3.1 Lithology Review Sand/Sandstone (3075'-3100') = medium dark gray to grayish black; faint brownish gray and olive gray secondary hues; fine lower to coarse upper scattered w distributed larger mode to granule(conglomerate); dominant angular to sub-angular; moderately sorted; very abundant lithics; compositional greywacke; prominent greenstone. Sand (3100'-3200') = medium to medium light gray with a slight greenish secondary hue; soft to disaggregated; moderately to poorly sorted overall, locally moderately well sorted in the medium grain size range; vertically sorted,fining upward; predominantly medium lower to medium upper in the tops grading to medium upper, coarse lower and granule with scattered to common small pebble and pebble fragments as depth increases; angular to sub angular translucent white to clear slightly frosted quartz/volcanics; very abundant medium to light and dark gray lithics; common orange to red-brown jasper and volcanics; trace light to medium blue-gray, light green and rose lithic/mineral grains; trace clastic coal fragments; both grain and matrix supported; where present matrix is light to medium gray silty clay; interbedded with thin to moderate beds of sandy siltstone and occasional thin clays. Tuffaceous Siltstone(3200'-3260')=light to medium light gray; mottled in part; soft to slightly firm; angular irregular to soft globular cuttings; hydrophilic; moderately to slightly cohesive; non to slightly adhesive; trace micro-thin carbonaceous lamina; slightly to very sandy; included sand is fine to very fine grain clear to translucent white quartz/volcanics; occasional thin clean light gray clay interbeds; grades to and interbedded with associated sands. Sand/Sandstone (3240'-3320') = medium to medium light gray with a slight brownish secondary hue; disaggregated loose sand moderately well sorted; medium lower to medium upper; trace coarse and scattered granule; angular to subangular; translucent white to clear quartz/volcanics with abundant light to medium and dark gray lithics; common to abundant orange to brick red jasper; common light blue- gray, greenish gray and pale rose lithic grains; common cement residue frosting on individual grains; interbedded with thin to moderate tuffaceous siltstone and occasional thin claystones. Tuffaceous Siltstone (3380'-3500') = light to medium light gray; slightly firm; crumbly; angular irregular cuttings slightly eroded via circulation; slightly sandy in part; micro-sparkly appearance due to volcanic glass shard inclusions; slight brown stain on fractures and bedding; trace carbonaceous inclusions; no micro- lamina noted trace point source calcareous grains. Sand/Sandstone (3450'-3580') = medium to medium light gray with a slight brownish secondary hue; disaggregated loose sand with variable amounts of soft ash/tuff matrix sandstone and silty sandstone; moderately sorted in the sand range; medium lower to fine upper, medium upper and occasional coarse grains; scattered angular pebble fragments and small moderately rounded pebbles; angular to sub-angular and sub-spheroidal; translucent white to clear colorless quartz predominate; common to abundant medium to light and dark gray lithics; trace to common subspheroidal dark gray to black mafic minerals and lithics; common orange to brick red jasper/volcanics; trace gray- green and blue green, pale rose and green lithic/mineral grains; primarily matrix supported in soft off white ash; trace to very slightly calcareous. 6 CANRIG Kenai Loop#1 Sand/Sandstone (3580'-3700') = medium to medium light gray with slight brownish secondary hue; disaggregated loose sand with variable amounts of soft volcanic ash and tuffaceous clay matrix sandstone and silty sandstone; occasional sandy tuffaceous siltstone interbeds; generally moderately well sorted; medium lower to medium upper; trace fine; scattered larger grains; angular to sub-angular and sub spheroidal; primarily matrix supported in soft,off white ash/tuff; some grains display slight cementation residue; clear to translucent white quartz/volcanics predominate; abundant to very abundant gray lithics; common to abundant orange to brick red jasper; trace greenish gray, blue-gray,green and brown lithic/mineral grains; trace dark gray to black mafic mineral/volcanics; very slightly to trace calcareous. Siltstone/Tuffaceous Siltstone(3700'-3860')=medium light to light gray with a slight brownish secondary hue; slightly firm; angular irregular cutting fragments; generally clean to slightly sandy,grading to claystone- tuffaceous claystone; minor coal is either very thin interbeds or concentration of clastic fragments; non to slightly hydrophilic; slightly adhesive; moderately cohesive; trace to slightly calcareous; note general absence of glass shards, some with concentration of shards at siltstone-sandstone contact points. Tuffaceous Claystone/Claystone(3700'-3860')= medium gray to medium light gray; faint light olive gray secondary hues; tuffaceous claystone with easily discernible vitric and devitrified micro shards; non- differentiated claystone has same characteristics but lacking shards and generally tighter,denser,firmer look and also less hydrophilic; all gradational to various co-bedded siltstones; often with common floating sand grains grading to clayey sandstone; soft to firm to occasionally brittle; fragile to tough; dominant irregular sharp-edged cuttings habit; many pieces with sparse clastic coal and/or other carbonaceous fragments; non to slightly calcareous; some claystones with large clasts of"other"claystone-siltstone. Sand/Sandstone/Tuffaceous Sandstone(3860'-4160')=overall very homogenous; prominent characteristic is the lack of change in"base"characteristics; olive gray with strong dark greenish gray and faint medium dark gray secondary hues; minor changes in lightness value in either direction; dominant moderately well sorted at fine upper to medium upper range; fining upward is subtle but occasionally pushes range to coarse upper; also well distributed scattered larger clasts of older consolidated sandstone (often with same general characteristics) and other lithologies; likely that there are rip-ups in basal zones of the massive sand units; very dominant size-shape group of sub-rounded to sub-angular,generally equant,spherical to sub-discoidal, common range to rounded; consistent minor fraction of angular to sub-angular also of general equant dimensions; dominant disaggregated by drilling/mud solution action; many consolidated pieces display fragile soft silty clay matrix; dominantly grain supported with local very common matrix support; harder fragments are complex mix of calc and silica cementation and intergrain silt-clay-ash; very abundant diverse colorful lithics fraction; compositional graywacke (>30% lithics) and (very) lithic arenite; distinctive well distributed scattered orange to reddish orange volcanic rock fragments contrast the dominant variegated-green greenstones and mix of black argillite rock fragments and mafic minerals. Tuffaceous Claystone/Tuffaceous SiltstoneNolcanic Ash(3950'-4365')=diverse volcanic ash derived soft rocks; (note locally significant distribution of non-differentiated claystones and siltstones also present);fine gradations of clay-silt-ash; note indicated tuff is air fall volcanic ash that has been transported and redeposited to a much lesser degree than the other tuffaceous rocks, generally has more unaltered vitric particles, more discernible glass shards and retains pseudo structures recognizable as relics of original vitriclastic texture; dominant medium light gray to medium gray with very strong light brownish gray secondary hues, but also many subtle variations and blendings of gray and brown primary colors and hues; mostly soft to very slightly firm or brittle, but range from very soft and almost liquid to brittle and tough; softer clays are hydrophilic and partially-completely soluble; overall poor-moderate adhesiveness and cohesiveness; firmer rocks have irregular cuttings habit; occasional floating sand grains; volcanic ash often very light gray but local light bluish gray and pale green variations; locally common carbonaceous particles-fragments; clayey to silty to ashy textures, gritty when shards, sand grains and other particles have high surface relief, also various soft matte textures; earthy lusters, occasional subglassy or slight greasy appearance of volcanic ash. 7 CANRIG : 1 Vie rtillEME Kenai Loop#1 Carbonaceous Material/Coal/Carbonaceous Shale(4210'-4330')=various carbon forms as either a bedded or clastic constituent; all of the tuffaceous rocks have particles-flakes of carbonaceous material and coal, in both a random and rough parallel orientation; some of the larger carbonaceous clasts are actually conglomerations of micro coal particles-fragments; dominant coal grade is lower grade lignite, in part down gradational to (woody) carbonaceous shale; black (coal) to brownish black to very dusky brown (carbonaceous shale); brittle to firm, fragile to marginally tough; smooth to dense matte (coal) to woody- shaly textures; dull to earthy lusters; the close association of micro-interbedded volcanic ash and coal occurs repeatedly. Sand/Sandstone/Conglomeratic Sand/Conglomerate(4365'-4490')=primary olive; strong greenish gray to dark greenish gray and medium gray to medium dark gray secondary hues; minor upward or downward shifts in lightness value; dominantly moderately well sorted at fine upper to medium upper to 4420',then becomes less well sorted and increasingly conglomeratic; size distribution mostly coarse to conglomerate (granule), and basal zones are prominently coarser; dominant size-shape group is sub-rounded to sub- angular, equant dimensions, spherical to sub-discoidal, less common rounded; constant minor fraction of angular to sub-angular also generally equant; dominant disaggregated; most consolidated pieces have fragile soft clayey-ashy matrix; dominantly grain supported, also local very common matrix support; harder fragments are complex mix of calc and silica cementation and intergrain silt-clay-ash; diverse lithics fraction dominated by greenstone rock fragments, orange volcanic fragments, black minerals-rock fragments; conglomerate and sand fractions share the same characteristics. Tuffaceous Siltstone(4500'-4560')=light to medium light gray with a slight greenish to brownish secondary hue; slightly firm to firm; angular irregular to eroded globular cuttings; slightly to moderately cohesive; slightly adhesive; hydrophilic; generally slightly sandy grading to very sandy and silty sandstone; micro- sparkly appearance due to included volcanic material; scattered micro-thin carbonaceous lamina become locally common; trace to common medium to medium light gray claystone and tuffaceous claystone; slightly calcareous. Sandstone/Tuffaceous Sandstone(4540'-4700')=light to very light gray with a slight to prominent yellowish to olive secondary hue; soft to slightly firm and disaggregated; moderately sorted over-all; locally poorly sorted; medium lower to fine upper predominate; basal zones tend to include medium upper to coarse and scattered granule; trace angular lithic pebble fragments; subangular to subspheroidal and angular; predominantly translucent white to clear colorless quartz/volcanics; 20 to 40% medium to light gray lithics; common to abundant orange and brick red jasper; trace blue gray and gray green lithics; trace pale rose and brown; material appears to be primarily matrix supported in soft light to very light gray ash/tuff matrix with a slight yellow secondary hue; trace brown ash appears to be stained brown from mud additives; locally displays trace visible porosity; coarser material appears to have at least partial grain support; occasionally thin lignitic coals; slightly calcareous Sandstone/Tuffaceous Sandstone/Conglomeratic Sand(4740'-4900')= light to medium light gray with a slight to pronounced yellowish to brownish secondary hue; disaggregated to soft amorphous globular and occasionally slightly firm angular cuttings; moderately well to poorly sorted; friable in part; moderate beds showing vertical sorting; medium lower to medium upper and fine lower in the upper zones grading to medium upper, coarse and scattered granule along the lower contacts; scattered pebble fragments and moderately rounded granule and small pebbles; scattered intact fragments confirm conglomerate; sub-angular to subrounded, angular and moderately well rounded grains; approximately 50% translucent white to clear colorless quartz/volcanics; abundant light to medium and dark gray lithics; common dark gray to black chert in the coarse to pebble range; common orange to brick red jasper; trace pale rose,green,gray-green, blue- green and brown mineral grains; trace phlogopite mica; interbedded with occasional thin tuffaceous silts- stone,claystone and ash beds; occasional thin lignitic coal interbeds; material appears to be primarily matrix supported in fine off white to white and yellow ash/tuff; locally grain supported particularly in the coarser grain; slightly calcareous. 8 CANRIG ' I ► , Kenai Loop#1 Conglomeratic Sand/Tuffaceous Sandstone/Sand (4900'-5060') = medium to medium light gray with a marked brownish secondary hue; disaggregated to soft and slightly firm; moderately to poorly sorted; locally moderately well sorted; friable in part; subangular to subrounded, moderately well rounded and angular; medium upper to medium lower,coarse,granule,small pebbles and scattered angular pebble fragments; 40% translucent white to clear colorless quartz/volcanics; 40%medium to light and dark gray lithics; common dark gray to black chert grains; common orange to brick red jasper; trace yellow, gray-green, blue-gray, green and brown lithic/mineral grains; trace mica; occasional intact ashy sandstone/conglomerate fragments; material appears to be primarily matrix supported; locally has some partial grain support; slightly calcareous. Conglomeratic Sand/Tuffaceous Sandstone/Sand (5060'-5160') = medium to medium light gray with a marked brownish secondary hue; disaggregated to soft and slightly firm; moderately to poorly sorted; friable in part; subrounded to subangular,moderately rounded and angular; medium upper to medium lower,coarse, granule,small pebbles and scattered angular pebble fragments; 50-60%translucent white to clear colorless quartz/volcanics; 30% medium to light and dark gray lithics; common dark gray to black chert grains; common orange to brick red jasper; trace yellow, gray- green, blue-gray, green and brown lithic/ mineral grains; trace mica; occasional intact ashy sandstone/conglomerate fragments becoming more common; trace fine to very fine grain ashy sandstone; material appears to be primarily matrix supported; locally displays at least partial grain support; slightly calcareous. Sand/Sandstone/Conglomeratic Sand/Conglomerate/Tuffaceous Sandstone (5160'-5400') = primary olive gray with non-color saturated medium gray to medium dark gray as strong secondary hues; common localized slight shifts in lightness value ranging from near light olive gray (higher) to olive black-dark gray (lower); also occasional faint brownish gray and greenish gray secondary hues; note that overall color derived from total abundance of dark lithic fragments and greenish coloration from lithic fraction of greenstones; overall color and composition are fairly homogeneous; diversity of sand groups is grain size driven; poor to occasionally moderate sorting; range from fine upper to pebble; most sand at medium upper to coarse upper, but common intervals with fairly even distribution of size groups from medium through conglomerate; roundedness and shape also appear to be size driven; finer sands are mostly sub-angular to sub-rounded, coarser sands mostly sub-rounded to rounded; most grains of all sizes are fairly equant and subspherical to spherical,but constant minor fraction of more angular and discoidal grains; note that abundant conglomerate appears to be gradational coarse end of fining upward sequences,but equally abundant fraction appears to be second mode in finer sands; overall tuffaceous sandstone weakly supported by soft volcanic derived matrix that displays abundant discernible glass microshards and is non-very slightly calcareous; tuff sandstone easily disintegrated by drilling; overall compositional graywacke(>30% lithics)and lithic arenite; estimate 35-55% quartz, 15-20% volcanic glass, trace feldspar, 10-20% various cryptosilica (chalcedony, chert) and other non-differentiated silica, 25-40% diverse lithics and mafic minerals; note dark gray-black, bluish black, brownish black and many other colored minerals and rock fragments mostly non-differentiated, but distinctive black argillite rock fragments, variegated green greenstones, and sparse but v distinctive orangish red volcanic rock fragments. Tuffaceous Sandstone(5400'-5490')=light olive gray to greenish gray to medium light gray; distinctive faint yellowish gray secondary hues; range from fine lower to very coarse lower; mostly moderately sorted in fine upper to coarse lower; apparent fining upward, and occasional bimodal; note spotty fraction of very fine grains appear to be glass shards winnowed from the matrix ash; dominantly sub-angular to rounded and equant sub-discoidal to spherical shape; nearly all same characteristics as immediately higher in column,but prominent fragile matrix support by abundant micro-shard rich volcanic ash; ashy compositional graywacke; continued contrast of orangish red volcanic rock fragments against diverse greenstones. 9 CANRIG . 1 ► � Kenai Loop#1 Tuffaceous Claystone/Tuffaceous SiltstoneNolcanic Ash (5390'-5600') = apparent clay-dominated volcanic ash derived mudstone with many local slight variations, but generally many shared characteristics; base color is medium light gray with strong light brownish gray and distinctive greenish gray secondary hues, but note many subtle variations in gray,olive gray and brown primary colors and secondary hues; also many localized lightness value shifts especially to higher value lighter colored rocks; clayey to silty to ashy to various soft matte and mixed textures; earthy to diffuse glassy lusters; except spotty interbeds of non- differentiated claystone and siltstone,nearly all rocks have spotty to abundant discernible glass micro-shards; all constituent lithologies are gradational to one another,all reworked volcanic ash; hydrated soft clays: poor to moderate cohesiveness, moderate to good adhesiveness, hydrophilic, at least partially soluble; common floating sand grains and coal/carbonaceous particles. Tuffaceous Claystone/Tuffaceous Siltstone(5600'-5760') = note subtle but distinctive change in overall bulk color at 5600'from greenish gray-medium light gray to medium bluish gray-light bluish gray-medium light gray; also note cleaner separation of claystone from the mixed clay-silt mudstone rocks; dominantly soft to slightly firm; most appears hydrophilic,soluble; minor fraction to claystone is brittle to marginally hard-tough and also often slight to moderately calcareous; clayey to silty to ashy to matte texture; earthy luster; note associated sand also displays change in characteristics with few greenstone and abundant phyllite lithics. Tuffaceous Claystone/Tuffaceous Siltstone (5760'-5840') = medium light to medium gray with a distinct bluish secondary hue; slightly firm to soft; globular to irregular eroded fragments; sticky; clayey texture; dull earthy to silty luster; moderately hydrophilic; moderately adhesive/cohesive; fragments commonly coated with re-worked sand; trace micro-thin carbonaceous fossil plant remains; common included volcanic glass shards; slightly sandy in part; material disintegrates immediately with application of hydrochloric acid; very slightly calcareous. Sand(5800'-5960')=medium gray; disaggregated loose sand; moderately to moderately well sorted; sub- rounded to sub-angular and moderately rounded; medium lower to fine upper and medium upper grain predominates; trace coarse and scattered granule are typically moderately rounded; scattered 3 to 7 mm pebbles; 50 to 60% medium to light and dark gray lithics; balance is translucent white to clear colorless quartz/volcanics; trace greenish gray and blue-gray lithics; trace brown and gray-brown lithics; interbedded with thin tuffaceous claystone/siitstones and occasional thin coals and carbonaceous shales; material appears to be primarily matrix supported in medium to light gray claystone/ash; locally grain supported; rare intact sandstone fragments noted; occasional masses of soft ashy matrix supported tuffaceous sandstone containing variable amounts of the typical sand and abundant fine to medium grain sub-spheroidal volcanics; bulk samples have a slight but unmistakable bluish secondary hue; very slightly calcareous tuffaceous claystone/tuffaceous. Siltstone(5920'-6060') = medium light to light gray with a slight bluish secondary hue; slightly firm to soft; soft globular masses and occasional slightly firm eroded fragments; dull earthy to gritty luster; silky to sandy/silty texture; moderately hydrophilic; moderately adhesive/cohesive; commonly coated with re-worked sand; trace micro-thin carbonaceous fossil plant remains; common included volcanic glass shards; slightly sandy in part. Tuffaceous Sand/Tuffaceous Conglomeratic Sand/Conglomerate(6050'-6200')=medium light gray with a slight bluish secondary hue; disaggregated sand and pebbles/pebble fragments with occasional loosely aggregated tuffaceous matrix fragments; poorly to locally moderately sorted; medium upper to coarse and granule with 10 to 30% pebbles and pebble fragments to 9 mm-average about 4 mm; medium to dark and light gray lithics predominate; abundant to very abundant translucent white to clear colorless quartz; trace chlorite stained quartz; common very dark gray to black chert particularly in the coarse to pebble range; all loosely held in soft light gray to off white ash/clay matrix; interbedded with similar appearing medium lower to fine lower grain tuffaceous sandstone, light to medium light gray tuffaceous silt/claystone and fine off white ash/tuff; no visible porosity; very slightly to trace calcareous 10 CANRK3 1Tl Kenai Loop#1 Tuffaceous Claystone/Tuffaceous Siltstone(6180'-6280')= medium light to light gray with a slight bluish secondary hue; in part; slightly firm to soft; eroded globular masses and rare slightly firm fragments; dull earthy to gritty luster; silky to sandy/silty texture; moderately hydrophilic; moderately adhesive/cohesive; commonly coated with re-worked sand; trace fragments have abundant carbonaceous micro-lamina and plant remains; interbedded with soft off white very fine grain sandy ash/tuff,carbonaceous shale,medium gray non tuffaceous claystone and thin sand/conglomeratic sand intervals; trace calcareous. Tuffaceous Sandstone/Tuffaceous Siltstone(6280'-6340')= light gray to medium light gray; soft to very slightly firm; hydrophilic; fine lower to medium lower; moderately well sorted; trace larger grains; note very fine matrix sand fraction is glass shards winnowed from ash; angular(fn)to rounded (med); equal mix of quartz-volcanic glass and dark gray(phyllite) lithics; abundant silt fraction has the appearance of a glassy- ashy-gritty"flour". Sand/Conglomeratic Sand/Tuffaceous Sandstone(6340'-6580')=bulk color medium light gray to medium gray,tuffaceous sandstone medium light gray to marginal light gray, loose sand-conglomeratic sand medium gray to dark gray; tuffaceous sandstone: gradational to sandy tuff claystone; matrix intergrain of tuff clay, volcanic ash, discernible microshards and floating carbonaceous particles; spotty very fine tuffaceous sandstone formed by redeposited-redistributed glass shards winnowed from the ash; shares many characteristics with tuff claystone as matrix volume increases; soft to slightly firm; more angular-sub-angular and discoidal than sub-rounded-rounded and spherical; slightly more quartz and volcanic glass grains than metalithic rock fragments; often hydrophilic, soluble and obvious easily disintegrated; sand/conglomeratic sand: occasionally also grayish black when separated from clays; local grayish "dirty" pepper and salt appearance; fine lower to pebble range; dominant mod to poorly sorted at fine upper to coarse lower; fining upward if massive; very dominant angular-sub-angular and more discoidal than equant; disaggreagated to tuff clay matrix support; compositional graywacke(>30%lithics);lithics fraction ranges as high as 80%; note that 80-90%of all lithics are dark gray to grayish black phyllite meta rock fragments with v distinctive partial- weathered, rough, micro-grainy, sub-schistose texture; other lithics dominated by dark gray assoc argillite fragments and dark variegated green greenstone fragments; dominant black mafics. Tuffaceous Claystone/Tuffaceous Siltstone(6280'-6580')=dominantly med gray but many gray and brown colors-hues; soft to slightly firm; hydrophilic; soluble, clayey-silty-ashy-matte textures; earthy luster; common faint blue-gray color; corn coal/carbonaceous lamination/particles; moderate to thickly bedded with numerous thin to very thin tuffaceous sand/conglomeratic sand interbeds an occasional very thin coal and carbonaceous shales; trace medium gray non tuffaceous claystone; common to trace silty off white to very light gray ash/tuff; very slight trace calcareous. Sand/Tuffaceous Sand/Conglomeratic Sand(6580'-6760')=medium to medium dark gray bulk sample has a slight bluish secondary hue; generally disaggregated; rare to trace intact tuffaceous sandstone fragments have a slight yellowish to brownish secondary hue; moderately sorted; sub-angular to angular and sub- spheroidal; medium lower to fine upper grain predominate; trace to common fine lower and very fine upper grain; larger grain dominated(60%) by medium to medium dark gray lithics;40%translucent white to clear colorless quartz/volcanics; trace yellowish quartz; note common un-weathered crystal faces on quartz; trace to common light gray lithics; trace brownish gray and blue-gray lithic/mineral grains; trace very fine to fine grain tuffaceous sandstone an yellowish white to white sandy ash/tuff; grades to and interbedded with associated tuffaceous siltstone; occasional very thin coal and carbonaceous stringers; non to trace calcareous. 11 CANRIG ' a Kenai Loop#1 Tuffaceous Siltstone/Tuffaceous Claystone(6760'-6860')=medium to medium light gray; slight brownish stain on bedding surfaces; bulk sample has a slight bluish secondary hue, becoming less pronounced and with a n additional brownish cast; firm to slightly firm and soft; irregular to blocky fragments; dull earthy luster; slight micro-sparkly appearance in part; silty to sandy and smooth clayey texture; silty fraction occasionally displays abundant carbonaceous micro-lamina; interbedded with and grading to thin tuffaceous sandstone ash/tuff and occasional very thin coal/carbonaceous stringers; moderately cohesive; slightly adhesive; slightly hydrophilic; trace calcareous. Tuffaceous Siltstone/Tuffaceous Claystone(6860'-6960')=medium to medium light gray; slight brownish stain on some bedding surfaces; very slight bluish to pronounced brownish secondary hue; soft to slightly firm; soft globular to irregular sub-blocky fragments; dull earthy to silky luster; gritty/slightly sandy texture; silty fraction commonly displays abundant carbonaceous micro-lamina; abundant micro-lamina fragments; interbedded with and grading to thin to moderate beds of fine to very fine grain very tuffaceous sand-stone, occasional thin conglomeratic tuffaceous sands and thin coals; trace carbonaceous. Sand/Tuffaceous Sand(6960'-7100')= medium light to medium gray; slight bluish to brownish secondary hue in bulk; generally as fluffy soft ash matrix supported globular masses and variable amounts of loose sand; fragments display a slight yellowish to brownish secondary hue; moderately well to moderately sorted; sub- angular to sub-rounded,angular and sub-spheroidal; fine upper to medium lower and fine lower grain;; trace medium upper; scattered larger grains; primarily trans-lucent white to smoky gray and clear quartz/volcanics; 30 to 40%of loose sand is medium to medium light gray lithics; trace brown and blue-gray lithics; trace mica flakes; interbedded with and grading to tuffaceous siltstone and very fine grain tuffaceous sand; common to abundant thin and micro-thin carbonaceous lamina and platy fragments; trace to common light gray calcareous tuff and calcite cemented very fine grain sandstone; trace out-gassing in tuffaceous siltstone; slightly calcareous overall. Tuffaceous Siltstone/tuffaceous Claystone(7100'-7180')=medium to medium light gray; very slight bluish to pronounced brownish hue in bulk; bluish to pronounced brownish secondary hue; soft to slightly firm; soft globular to irregular sub-blocky fragments; dull earthy to silky luster; gritty/slightly sandy texture; brown carbonaceous in part; interbedded with, and grading to tuffaceous sandstone; carbonaceous tuffaceous claystone may have generalized distribution of very fine carbonaceous material and/or thin laminations, laminar streaks-flakes and particles of coal/carbonaceous shale; note that partings of tuff claystone are generally in rough parallel orientation and expose micro-thin laminations of carbonaceous material or sand-silt. Tuffaceous Claystone/Tuffaceous SiltstoneNolcanic Ash(7180'-7180')=overall clay-silt-ash mudstone largely derived from redeposited volcanic ash; many shared characteristics despite rock type variations; bulk color and dominant clay color is medium gray; note occasional brownish gray secondary hue when carbonaceous; many localized subtle variations in gray, brownish gray and pale brown primary colors and secondary hues; note many localized shifts in lightness value, most commonly downward to darker gray colors; clayey to silty to ashy to various soft matte and mixed textures; earthy to"soft"glassy luster; fraction of discernible glass shards ranges from trace to very abundant; constituent lithologies all gradational to the others; hydrophilic soluble soft claystones display poor to moderate cohesiveness, moderate to good adhesiveness; floating sand grains and coal/carbonaceous particles in many soft rocks; note traces of very calcareous brittle to hard medium gray calcareous tuff; note common well distributed very fine carbonaceous material in thin zones; most massive claystone also has thin laminations, laminar streaks or flakes and particles of coal/carbonaceous shale partings of claystone-siltstone usually in rough parallel orientation on the carbonaceous laminations or at sand-ash lineations; consistent spot fraction of firm to brittle claystone- siltstone with irregular to blocky cuttings habit. 12 CANRIG 1 Kenai Loop#1 Sand/Sandstone/Tuffaceous Sandstone(7400'-7600')= medium gray to dark gray with faint olive gray to olive black to brownish black secondary hues; very fine lower to very coarse upper total range; mostly moderate to moderately poor sorting at fine lower to coarse lower; largest fraction is medium; abundant fractions of disaggregated loose grains,fine-medium very calcareous consolidated sandstone fragments,and minor fraction of soft shard-rich tuffaceous sandstone; calcareous sandstone is both matrix and grain supported,apparently associated with trace-spotty presence of calcareous tuff,strongly effervescent,medium gray,brittle and fragile to marginally hard and tough; mostly angular-sub-angular and discoidal-irregular sharp edged, but spotty(fine)mode rounded grains; note consolidated sandstone displays cuttings fragments with both poor and fair visible porosity; compositional graywacke (>30% lithics) and lithic arenite; some of the tuffaceous sandstone is fairly"dirty looking"with matrix silt-clay in addition to ash; estimate 30-60%quartz 10- 20%volcanic glass,trace feldspar, 10-15%cryptosilica(chalcedony,chert)and other non-differentiated silica, 25-65% lithics and mafic minerals; note that 80-85% of all lithics are medium to dark gray phyllite rock fragments with distinctive slightly weathered schistose texture,remaining lithics mix of assoc dark gray argillite fragments and greenstone rock fragments. Sand/Sandstone/Tuffaceous Sandstone(7600'-7720')= medium gray to dark gray with faint olive gray to olive black to brownish black secondary hues; moderately to moderately well sorted; fine upper to medium lower grain predominate; locally common medium lower to medium upper and coarse lower notably where larger grain is encountered; angular to sub-angular and sub-rounded; finer material tends to be more rounded/spherical; predominantly translucent white,clear and smoky quartz/volcanics coarser material trends to mostly dark t medium gray lithics; principally tuff matrix supported; some local grain supported calcareous sandstone with some visible porosity; interbedded with similar tuffaceous siltstone; silty fraction is occasionally very carbonaceous and has associated thin coal and carbonaceous shale stingers; occasional sand and siltstone fragments with abundant brown lignitic content; trace non calcareous and calcareous tuff; sandstone is non to moderately calcareous. Tuffaceous Siltstone/Tuffaceous Claystone(7700-7800)=medium to medium dark gray; firm to soft; dull earthy to matte luster; silty to clayey overall; all somewhat sandy; hydrophilic in part; moderately cohesive; slightly adhesive; trace to abundant micro-thin carbonaceous lamina; trace thinner coal lamina and occasional fragments with disbursed brown lignitic material; interbedded with thin to very thin silty tuffaceous calcareous sandstone, calcareous tuff and silicic tuff; overall slightly to moderately calcareous. Tuffaceous Siltstone/Tuffaceous Claystone(7800-7900)=medium to medium dark gray; brownish gray in part; clean fragments show a slight bluish secondary hue; firm to very firm and soft; sticky/clayey in part; dull earthy to matte luster; silty to sandy texture; grades to silty tuffaceous calcareous sandstone as thin to very thin interbeds and silty tuffaceous claystone; trace calcareous and silica tuffs; trace micro-thin carbonaceous lamina and included particles; common platy carbonaceous shards; slightly calcareous overall. Sand/Sandstone/Tuffaceous Sandstone (7800'-8000') = medium gray to medium light gray with a slight brownish secondary hue; soft to disaggregated and hard fine upper to fine lower,very fine and medium lower grain; characteristics of ash/tuff matrix are similar to very fine silty tuffaceous calcareous sandstones observed in thinly interbedded sections higher in the lithologic column; note that some calcareous sandstone displays good visible porosity; interbedded with gray to grayish brown tuffaceous siltstone and medium greenish gray tuffaceous claystone; occasional thin coal and carbonaceous shale stringers; spotty amber fragments and spherules; associated coals after 7940' are more massive, sub-bituminous, blocky and vitreous. Tuffaceous and Carbonaceous Lithologies (8000'-8050') = mix of non-carbonaceous and very carbonaceous tuffaceous soft rocks; medium light gray to dark gray with strong brownish gray sec hues,and abundant pale brown to brownish black carbonaceous shale/coal/very carbonaceous tuff claystone-siltstone; suspect localized succession of deposition and re-deposition. 13 CANRIG a 1 1rt3 Kenai Loop#1 Tuffaceous Claystone/Tuffaceous Siltstone/Tuffaceous Sandstone(8050'-8300')=overall volcanic ash derived mudstones,thinly bedded,whose clay-silt-sand fractions share many characteristics and have many subtle diverse differences; many individual cuttings fragments display two or more lithologies; becomes significantly more silt dominant after 8080', more diverse sandstone types after 8110'; medium gray to dark gray with local strong brownish gray secondary hue; note many subtle variations of associated gray and brown primary colors and secondary hues; dominant soft to slightly firm/brittle; soft hydrophilic partially soluble clays are moderately adhesive,poorly cohesive; brittle siltstone/claystone has irregular blocky cuttings habit; spotty marginally hard and tough medium gray slightly sucrosic calcareous tuff associated with trace fine non-ashy sandstone; clayey to silty to ashy to soft matte to various mixed textures; earthy to spotty micro-sparkly luster; abundant pieces with floating sand grains grading to silty-clayey sandstone; common zones of brown (very) carbonaceous tuffaceous siltstone/ claystone; abundant pieces with micro- thin carbonaceous laminations and included particles. Sandstone/Sand/Tuffaceous Sandstone(8100'-8350') = medium gray to medium dark gray; occasional faint brownish gray and olive gray secondary hues; local shifts in lightness value from medium light gray to dark gray; very fine lower to coarse lower; moderate to moderately well sorted in fine lower to medium range; dominant angular to sub-rounded and equant-subspherical to sub-discoidal; diverse sandstone types in trace to spotty amounts; note distinctive medium dark gray very fine to fine sandstone with friable to durable silica- dominant cementation; dominant tuffaceous matrix support,but many fragments of complex grain and matrix support with mix of calcite and silica cementation and variegated silt-clay-ash intergrain; generally lithic arenite with abundant metalithics. Tuffaceous Claystone/Tuffaceous Siltstone(8300'-8400')=medium to medium dark and locally medium light gray; some fragments with slight bluish and occasionally brown secondary hues; slightly firm to soft; trace firm; dull earthy luster; micro-sparkly appearance in part; smooth clayey to silty texture; slightly to very sandy; moderately hydrophilic; moderately cohesive; slightly to non adhesive; interbedded with thin to very thin carbonaceous/tuffaceous very fine grain silty sandstone and occasional thin carbonaceous shale and thicker beds of dark gray to black sub-bituminous coal; slightly calcareous. Tuffaceous Sandstone(8480'-8640')=medium to medium dark gray with a slight yellowish to olive brown secondary hue; very soft to soft and slightly firm; trace moderately hard; moderately sorted; fine upper to medium lower and very fine upper grain; locally dominated by medium lower to coarse lower; subangular to subrounded and angular; approximately 50%translucent white, clear and yellow stained quartz/volcanics; remainder is medium to dark gray and black lithics/minerals; trace very dark gray to black clastic coal grains; very carbonaceous in part; grades to similar sandy tuffaceous siltstone; siltstone in this interval has micro-thin carbonaceous lamina; trace fine lower to very fine silty sandstone with some visible porosity; after 8560'sand becomes more uniformly fine upper to fine lower,friable, partially grain supported; trace visible de-gassing; trace moderately hard calcareous medium lower to fine upper grain sandstone has fair visible porosity; overall slightly to moderately calcareous. Tuffaceous Sandstone/Sandstone/Sand/Conglomeratic Sand/Conglomerate(8640'-8810')=olive gray to light olive gray; common slight shifts in lightness value and hue to lighter, grayer colorations; also common very fine mottling in roughly parallel lineations-streaks; ashy matrix supported tuff sandstone appears denser and more compacted than cleaner sandstones with moderate visible porosity; very fine lower(winnowed glass shards) to granule-conglomerate (basal zone of larger, locally interrupted massive sand section at 8540'- 8715'); moderate to moderately well sorted from fine lower to medium lower; discernible overall fining upward; angular to subangular,discoidal to subdiscoidal; pervasive very equant grain dimensions throughout despite sharpness of grain faces; very abundant volcanic ash-tuffaceous clay matrix support; most intergrain material is non-clayey(microshards not completely devitrified); complex matrix of volcanic glass microshards, devitrified shards, other vitric fragments, minor clay-silt, carbonaceous fragments, various weathering and replacement products(after lithics and mafic minerals)and occasional(weak)silica and calcite cementation; matrix often displays mushy fine blackish and reddish streaks; non-tuffaceous sandstone dominantly grain- supported, friable, weakly cemented by both calcite and silica with moderate visible porosity; overall 14 CANRIG ■ , a Kenai Loop#1 composition is very ashy sublithic to lithic arenite. 15 CANRIG • 1 a \ 1111 Kenai Loop#1 Coal/Carbonaceous Rocks(8810'-8940')=coal: black; vitreous; dull to resinous luster; high lignite to low bituminous; thin platy to tabular blocky to minor conchoidal fracture; note very common thin lamina of coal, and also common clastic coal fragments in sandstone and siltstone; also inverse relationship with micro interbeds and layers of constituent soft rocks in the coal; fragile to tough; some slow degassing. Tuffaceous Sandstone/Tuffaceous Siltstone (8700'-8930') = note very close association of lithologies; slight changes in matrix volume represent shifts in rock type; sandstone tends to have more glass shards and a group of weathered minerals with distinctive colorations; siltstone has non-glassy clays. Tuffaceous sandstone/Tuffaceous siltstone (8940'-9060') = medium to medium dark and medium light olive gray; soft to slightly firm; sandstone is occasionally hard; moderately well to well sorted; fine lower to medium lower and very fine grain; sub-angular to sub-rounded in the finer grain; sub-angular to angular in the larger grain; pre-dominantly translucent white to slightly smokey,clear and yellow stained quartz/volcanics in the finer grading to mostly medium to dark gray lithics in the larger grain material; rapid gradational change locally between siltstone and sandstone dominance; ashy/tuffaceous; hydrophilic; locally calcareous; trace thin carbonaceous shales and occasional thin to moderate beds of tabular brittle poorly developed sub- bituminous coal; trace to 20% hard to firm medium to fine grain calcareous sand with some visible porosity; trace fragments display 1 to 3 mm thick coal lamina zones; moderately calcareous overall. Tuffaceous Sandstone/Tuffaceous Siltstone/Sandstone(9060'-9220')=medium to medium dark and dark olive gray; soft to slightly firm and moderately hard; friable in part; moderately well to locally moderately sorted; fine lower to very fine upper and fine upper predominate; trace to common medium lower in cleaner moderately hard mottled friable salt and pepper sand; thin to moderate beds all in apparent gradational contact; trace fragments show abundant carbonaceous lamina and included particles from very fine to coarse size; primarily matrix supported in light gray-brown to yellowish gray ash/tuff; locally has poor to trace visible porosity; trace to common thin carbonaceous shale stringers; occasional moderate beds of tabular poorly developed sub-bituminous coal; common fine light gray calcareous tuff; trace medium gray non-tuffaceous claystone; moderately calcareous. Coal/Carbonaceous Shale (9180'-9240') = very dark gray to black and very dark brown; hard; brittle; tabular to irregular; dull to matte luster; trace conchoidal fracture on some fragments; poor quality sub- bituminous; interbedded with numerous thin sands and sand lamina; commonly shaly to silty; trace gray claystone. Tuffaceous Sandstone/Tuffaceous Siltstone (9220'-9380') = occasional distinct sand/silt fractions; generally appears as very sandy ashy siltstone that locally loses the silt and "cleans"to a sandstone; olive gray base color, with shifts in hue and lightness value to slightly browner, grayer, lighter colorations; distinctive rock text with lines of greenstone-particles in rough parallel orientation; note many complex lithology types in combination with associated tuffaceous claystone and abundant carbonaceous material(i.e. very carbonaceous ashy sandy siltstone); abundant cuttings fragments of all lithologies have micro thin laminations and/or particles of other lithologies; coals in same interval appear thinly interbedded with abundant very carbonaceous"coaly"tuffaceous siltstone; silt-ash-clay soft rocks gen pale brown to brownish gray with strong olive gray to brownish black hues; very gritty coarse matte texture overall; corn cuttings fragments have soft glassy appearance. Tuffaceous Sand/Sandstone/Conglomerate Complex(9450'-9600')=medium to medium light gray with a slight brownish secondary hue; mottled gray/white in part; hard to firm and disaggregated; medium lower to fine upper, coarse to pebble in part; sub-angular to angular; trans- lucent white to clear colorless quartz/ volcanics; common to abundant dark to medium gray lithics; trace yellow—stained(possibly limonite infused) tuff; primarily matrix supported in soft hydrophilic light olive gray to white ash/tuff; interbedded with and grading to sandy tuffaceous siltstone/claystone and occasional hard dark gray non tuffaceous claystone; occasional moderate beds and thin stringers of very shaly/silty coals and carbonaceous shales; common thin 16 CANRIG : 111 Kenai Loop#1 ash/calcareous tuff interbeds; moderately calcareous. 17 CANRIG 1 Kenai Loop#1 Tuffaceous Sand/Sandstone/Conglomerate Complex(9450'-9600')=medium to medium light olive gray; salt and pepper in part soft to disaggregated and occasionally very firm; moderately to poorly sorted; predominantly medium lower grain with variable fine upper to medium upper, fine lower, very fine, coarse, granule and scattered pebble fragments to 6mm; variably silty grading to tuffaceous siltstone; 70 to 80% translucent white quartz/volcanics; common medium to dark gray lithics; scattered limonite and red orange jasper; trace medium red-brown iron stained ash; common light to very light gray-brown ash; note pebble fragments are about evenly divided between quartz and firm to hard lithics; occasional thin to moderate coal, carbonaceous shale,tuffaceous silt/claystone and ash; generally very slightly calcareous; trace firm friable calcareous sand with trace to poor visible porosity. Sand/Sandstone(9690'-9700')=olive gray; very fine to spot conglomerate/granule; dominantly fine lower to med upper; moderately to poorly sorted; subangular to sub-rounded; dominantly sub-spheroidal-sub- discoidal; calcareous cemented; very minor ash support; sublithic arenite; diverse lithics. Sand/Sandstone (9700'-9720') = light olive gray; fine upper to medium upper and trace coarse lower; dominantly well sorted at medium lower; angular to subangular and subdiscoidal to discoidal; dominantly equant dimensions; abundant quartz and amorphous glass grains with conchoidal fracture faces; lithic quartz arenite; 85-90%quartz and volcanic glass,trace feldspar,trace-5%cryptosilica and various undifferentiated silica, 5-10%dark gray to black mostly undifferentiated metalithics and mafic minerals. Tuffaceous Sandstone(9720'-9820')=overall color group is within light olive gray-olive gray-dark greenish gray-greenish gray; appears mottled when increased lighter gray matrix ash; spotty very fine fraction of winnowed glass shards; ranges upward to localized very coarse to granule(conglomerate); moderately well sorted at fine upper to med upper; angular-subrounded discoidal-sub-spherical,equant; dominantly volcanic ash (devitrified)and tuffaceous clay supporting matrix, with local (abundant) increased tuffaceous siltstone; note increased percentage and diversity of lithics-mafics down section. Tuffaceous Siltstone(9790'-9910')=olive gray with faint brownish gray sec hues; soft to slightly firm-brittle; silty to ashy to very soft matte textures; earthy luster; homogeneous with very minor gradation to claystone or sandstone; appears pervasive slightly carbonaceous in part; occasional thin carbonaceous shale, sand and ash interbeds. Coal/Carbonaceous Shale (9910'-10000') = black to very dark gray and brownish gray; hard; brittle; angular irregular slightly splintery to tabular fragments; primarily shaly/silty; sandy in part; trace silty sub- bituminous coal with poorly developed conchoidal fracture; interbedded with dark gray-brown carbonaceous siltstone, thin lighter olive gray tuffaceous siltstone and very thin sand stringers. Tuffaceous Sand(9950'-10050')=medium light to medium olive gray; soft to disaggregated and slightly firm; well to moderately sorted; locally moderately poor sorting; fine upper to medium lower predominate; locally medium upper to lower and coarse lower with common granule and scattered small pebble; angular to subangular; translucent white to colorless quartz/volcanics; trace to common diverse multi color lithics,dark mafic; mineral/volcanics, hard pyritic coal fragments and hard medium grain calcareous sandstone; trace to abundant white to olive gray ash; generally ash matrix supported; local grain support with good visible porosity; moderately calcareous. Coal/Carbonaceous Shale (10085'-10110') = black to v dark gray; hard; brittle; hackly in part; angular irregular to splintery fragments; slightly shaly/silty; interbedded w mod to very carbonaceous tuffaceous siltstone/sandstone, shale and soft brown ash. 18 CANRIG :1 1 � 1�t.s. Kenai Loop#1 Tuffaceous Sandstone/Tuffaceous Siltstone (10120'-10200') = light olive gray to olive gray; local light brownish gray secondary hues; minor variations in lightness value; soft to slightly firm-brittle; sandstone becomes very friable and delicate as matrix volume decreases and transitions to grain supported; sandstone: moderately well to moderately poor sorting; most is fine upper to medium lower; scattered to common coarser grains; angular to sub-spherical,discoidal to sub-discoidal,dominant equant dimensions; abundant volcanic ash derived supporting matrix; pervasive grading to tuff siltstone as matrix becomes distinctly siltier and fraction of sand decreases and becomes more dispersed. Coal/Carbonaceous Shale/Carbonaceous Tuffaceous Siltstone(10110'-10290')=black to brownish black (coal),to pale brown to dusky brown to brownish gray(carbonaceous tuff siltstone);coal:brittle-fragile to brittle- tough-marginally hard; smooth to dense matte texture; dull to vitreous to resinous luster; irregular to blocky to splintery to thin platy habit; rough thin planar to partial conchoidal to occasional hackly fracture; high lignite to low bituminous; abundant adjacent and co-bedded carbonaceous shale; carbonaceous tuffaceous siltstone: massive sections of tuffaceous rocks with distinct carbonaceous"coal"content. Sand/Sandstone/Tuffaceous Sandstone/Conglomeratic Sand/conglomerate (10290'-10380') = many sandstone types within thick massive sand section; light olive gray to olive gray; narrow range of minor color ,hue and lightness value changes close to olive gray; tuffaceous sandstone also appears mottled with light gray ash against dark colors; very fine lower (winnowed glass shards) to pebble; moderate (tuffaceous sandstone)to dominant poor sorting; most med upper to v coarse upper; angular to sub-angular(sand)to rounded(conglomerate); large disaggregated fraction; soft tuff matrix support and variegated calcite cementation; very coarse to pebble fraction diverse, common well rounded clasts; sublithic arenite to compositional graywacke. Tuffaceous Siltstone/Tuffaceous Sandstone (10380'-10500') = medium to medium light olive gray; moderately firm to moderately hard and hard; abundant to trace micro-thin carbonaceous lamina and inclusions; thin to moderate beds in gradational contact; interbedded with occasional moderate coals and carbonaceous shales; common to locally abundant thin light gray to very light gray to white volcanic ash; trace calcareous tuff; trace multicolor sand grains; occasional thin cleaner partially grain supported calcareous sandstone; remaining sand is primarily matrix supported; overall slightly calcareous. Sand/Sandstone/Tuffaceous Sandstone/Conglomeratic Sand/Conglomerate(10500'-10635')=within light olive gray to olive gray to brownish gray group; local minor changes in hue and lightness value tuffaceous sandstone often has faint yellowish gray secondary hue,and often appears mottled with very light gray matrix volcanic ash contrasted against other colors; very fine lower (glass shards winnowed from volcanic ash) to pebble; moderate sorting (when abundant tuffaceous sandstone) to poor sorting (when disaggregated and conglomeratic); largest fraction is medium upper to coarse upper,but fining slightly as ash content increases; angular-sub-angular to slightly dominant sub-rounded to rounded; all grains of fairly equant dimensions; very coarse and conglomerate clasts are often well rounded; disaggregated to dominant volcanic ash-tuffaceous clay matrix support to(mostly weak-fragile)calcite and silica cementation; sublithic arenite to lithic arenite; estimate 60-80% quartz and volcanic glass; trace feldspar, 10-15% cryptosilica (chalcedony, chert)and non-differentiated silica, 15-20%diverse lithics and undifferentiated mafic minerals; lithics dominantly phyllite and argillite rock fragments and greenstones. Coal/Carbonaceous Rocks (10635'-10675') = black-brownish black; brittle-marginal hard; fragile-tough; sub-bituminous to bituminous; thin platy-splintery-hackly to conchoidal fracture; smooth-very dense matte text; vitreous-resinous luster; note tuffaceous sandstone at base of coal. 19 CANRIG 3.2 Sampling Program SAMPLE MANIFEST: Buccaneer Alaska Operations, LLC Kenai Loop 1: Boxed Washed and Dried Samples 30 Boxes Total: 3 Sets of 10 BOXES Operator: Buccaneer Alaska Operations, LLC Well Name: Kenai Loop 1 Field: Kenai Peninsula Exploration County: Kenai Borough State: Alaska Company Representatives: Larry McAllister, Larry Driscoll, Thor Kellestad, Bob Davis, Location: 1888'FNL 1037'FWL, Sec 33 T06N R11 W SM, X=279518.13 Y=2402268.55 Classification: Exploratory API #: 50—133—20595—00—00 Permit#: 211 —043 Activity Code: AFE# KL-0101 Rig Name/Type: Glacier#1 /Land/Double Total Depth 10680' Total Depth Formation: Tyonek Total Depth Date: May 08, 2011 CDT Logging Geologists: John Lundy, Craig Silva, Ralph Winkelman CDT Sample Catchers: Greg Hammond Set Type and Purpose Interval Frequency Distribution Att: Howard Okland Washed and Dried 3075'— 9000' 20' Intervals AOGCC A Reference Samples 9000'—10680' 10' Intervals 333 W. 7th Ave., Suite 100 Anchorage, Alaska 99501 Att: Howard Okland Washed and Dried 3075'— 9000' 20' Intervals AOGCC B Reference Samples 9000'—10680' 10' Intervals 333 W. 7th Ave., Suite 100 Anchorage, Alaska 99501 Att: Howard Okland Washed and Dried 3075'— 9000' 20' Intervals AOGCC C Reference Samples 9000'—10680' 10' Intervals 333 W. 7th Ave., Suite 100 Anchorage,Alaska 99501 BOX INTERVALS: 20 CANRIG of3AINfil Kenai Loop#1 4 DRILLING DATA 4.1 Daily Activity Summary 4/12/2011: Rig up unit. Rig up drilling rig. 4/13/2011: Rig up unit. Rig up drilling rig. 4/14/2011: PTSM and change out sensator rubber on#1 Pump. Weld 2" nipple on conductor. Change out valve on rig floor water manifold. Work on rig audit. Chain down mouse hole. Rig up kill line to conductor. Inspect derrick and rig-up. PJSM and finish rig audit. PJSM. Prep rig floor for picking up 5"drill pipe. PJSM. Drift, pick up and make up 5"drill pipe. PJSM. Test knife valve and bag. Performance test Koomey. Test alarms with AOGC. PJSM. Drift, pick up and make up 5"drill pipe and stand back in derrick. Weekly safety meeting. PTSM. Drift,pick up and make up 5"drill pipe and strap. Drift,pick up and make up 5"HWDP strap and stand back. Service top drive, carrier and crown. Stage BHA and pep floor. PJSM. Make up BHA. Clean out conductor from 90'to 138'. Drill new hole from 138'to 198'. 4/15/2011: Drilling from 204 to 403' MD 4/16/2011: PJSM. Drill from 198'to 440'. PJSM. Continue drilling from 440'to 795'. PJSM. Drill from 795' to 1556' 4/17/2011: PTSM. Drill from 2949' to 3075'. PJSM. Circulate bottoms up. Monitor well and flow check (good). Mix and pump dry job. Monitor well and flow check(good).. PJSM. Pull out of the hole with 5"drill pipe from 3075'to 797', SLM(no correction). PJSM. Service rig. PJSM. Run into hole with 5"drill pipe from 797'to 3075', 8'fill. PJSM. Circulate, run sweep and circulate. PTSM. Continue circulation. Mix and pump dry job. PJSM. Pull out of the hole from 3075' to 797' with 5" drill pipe. PJSM. Pull out of the hole with HWDP and BHA. Stand back 2 CSDP,bit,and stabilizer. Lay down MWD,filter and short CSDP. Clean floor and stage wire-line tools. PJSM. Rig up wire-line, run logs and rig down. PJSM. Spool new drilling line. 4/18/2011: PTSM. Drain mud motor. Break bit and lay down mud motor. ST Stabilizer and 5 joints 5"drill pipe. PJSM. Clear rig floor. Swap tongs. Make up fill-up hose. Change bails and elevators. PJSM. Pick up shoe track and check floats. PJSM. Run into hole with 10 3/"casing to 3055'. PJSM. Rig down Weatherford tongs and slips. PTSM. Change out bails and elevators. Swap tongs and tong head. Rig down fill-up hose. Clear and clean floor. PJSM. Make up stabbing tool and centralizer. Run into hole from false rotary table to 2969'. Rig up circulating head and circulate. PJSM. Pump 42 bbls mud clean with red die. Pump 3 bbls water and test lines to 2000psi. Mix and pump cement per plan. Check floats. Rig down cement head. Pull out of the hole from 2969'to 2835'. Drop plug. Circulate 2000 strokes. Drop second plug. Circulate. PJSM. Pull out of the hole with stabbing tool and 5"drill pipe from 2835'. 4/19/2011: PTSM. Continue pulling out of the hole from 2835'to surface. PJSM. Break off stinger and drill pipe stabilizer. Lay down false table. Change out elevators. Clear and clean floor. PJSM. Continue cleaning pits. Flush annular. Clean cellar and diverter equipment. Hot bolt diverter line, fill, trip, flow line, chains, W.O.C. PJSM. Remove diverter, knife valve,flange, kill line, dump valve and mouse hole. Rig down cellar scaffolding. Make up single gate, mud cross, choke and HCR. Rig down possum belly. Continue cleaning pits. PTSM. Prepare and rough cut 10 3/."casing(20.98). Repair 3 dump valve rubbers in pits. Nipple down diverter. Rig down pitcher nipple, bag, "T" and flow line adaptor. Remove starter head. Fill pits and build mud. Prepare and cut 16"conductor. Final cut 10 3/"casing(5.67),dress 10 3/",modify shaker possum belly for gas detector. Prepare wellhead. Install DSA, 36" spacer spool, single gate, mud-X, kill valves, check valve,double gate, bag, bell guide,work platform,trip tank valve and actuator. Rig up work platform in cellar. 27 CANRIG ir Kenai Loop#1 Plumb fittings for stack. 28 CANRIG ._ I 1r��� Kenai Loop#1 4/20/2011: PTSM. Nipple up BOP. Install riser, choke shoot, choke hose and choke line. Function test stack. Change out variables ram body and install. Install electrical for possum belly. Clean beaver strainers. Load pipe rack. Continue nippling up stack. Rig up upper cellar bleeders, air up boots, flow line adaptor, center stack,trip tank activator. Install mouse hole. PJSM. Rig up BOP test equipment. Body test. Rebuild sensator. Tighten kill line flange and double stud adaptor.. PTSM. Test 250/4000 psi—upper and lower top drive valves. Test annular to 250/2500 psi,Test upper pipe rams, kill line, Demco dart valve,CMVs 1, 10, 11, 12. Test PVTs,flow and gas detectors. Performance test Koomey. Calibrate chart recorder. Test 250/4000 psi—floor valve, inside and outside kill,check valve, manual choke, HCR,CMVs 2,5,6„7,9,3,4, lower pipe rams and blind rams. Rig down test equipment. Install wear bushing. PJSM. Rig up to test 10%"casing. Test 10%"casing to 2500 psi for 30 minutes. Blow down choke manifold. Prepare to pick up drill pipe. 4/21/2011: PTSM. Pick up 5"drill pipe and stand back in derrick. Pick up/make up BHA#2 and Baker tools. PTSM. Run into hole to bottom. Tag up, drill out shoe track and make new hole to 3099'. Circulate hole clean and perform LOT to 15 PPG-MWE. Drill from 3099'to 3352'. Circulate hole clean. Pull out of the hole 4 stands for second LOT. 4/22/2011: PTSM. Pull out of the hole from 3352' to 3029'. PJSM. Perform leak off test to 1030psi, 14.7 PPG-MWE. PJSM. Run into hole from 3029'to 3352'(no fill). PJSM. Drill from 3352'to 4141'. PTSM. Drill from 4141'to 4490'. PJSM. Circulate hole clean. Check for flow. PJSM. Pull out of the hole from 4490'to 3035'. PJSM. Service top drive, carrier, blocks and crown. Pump up brakes. PJSM. Slip drilling line 33'. PJSM. Run into hole from 3035'to 4427'. Wash to 4490', no fill. Drill from 4490'to 4617'. 4/23/2011: PTSM. Drill from 4617'to 5100'. PJSM. Pull out of the hole 1 stand. Change out grabber dies. Run into hole 1 stand. continue drilling from 5100'to 5441'. PTSM. Drill from 5441'to 5631'. Troubleshoot rig electrical supply to Canrig gas detector. Drill from 5631'to 6012'. 4/24/2011: PTSM. Drill from 6012'to 6581'. PTSM. Circulate hole clean. PJSM. Flow check. Pull out of the hole from 6581'to 6351'. Pump dry job. Pull out of the hole from 6351'to 4427'. Service and lube rig,top drive, crown and blocks and carrier. Trouble shoot disc brakes. PJSM. Run into hole from 4427'to 6520'. Wash from 6520'to 6581' (15'fill). Drill from 6581'to 6898'. 4/25/2011: Drill from 6898'to 7341'. PTSM. Dill from 7341'to 7848' 4/26/2011: PTSM. Drill from 7848'to 8000'. Circulate up samples at 8000'. Pump high viscosity sweep and circulate out. Check for flow. PJSM. Pull out of the hole from 8000'to 7658'. Check for flow. Pump dry job. Continue pulling out of the hole from 7658'to 6851'. PJSM. Run into hole from 6851'to 8000'(5'fill). PTSM. Drill from 8000'to 8050'. Circulate up samples. Pump 42 bbls high viscosity sweep. Check for flow. Pump dry job. PJSM. Pull out of the hole from 8050'to 824' SLM. PJSM. Pull out of the hole standing back 5" HWDP and jars. Lay down BHA. Stand back NMCSDP. Clear floor and clean up. PJSM. Rig up wire-line. 4/27/2011: PTSM. Continue rig up for wire-line. PJSM with wire-line crew. Load sources and run tools.. Continue wireline operations. PTSM; (Neutron density/gamma log). Log from 7958' to 3000'. Unload sources. Rig down wireline. Pull wear bushing. PJSM. Rig up to test BOPs. Test Annular 250/2500 psi. Test to 250/4000 psi; upper pipe, lower pipe, upper and lower top drive, inside and outside kill valves, kill line Demco valve,blind rams,manual choke, HCR,dart valve,floor valve,CMVs 1-12, Koomey performance test, PVT low and high, High,gas detectors. Rig down test equipment. Install wear bushing, Rig up wireline, Run into hole with MREX and test tool. 29 CANRIG rt7liefil Kenai Loop#1 4/28/2011: PTSM. Note MREX tool failure. Rig down wireline. PJSM. Slip 120', cut 145' drill line. Adjust brakes. PJSM. Service rig and top drive. PJSM. Make up BHA. Run into hole with HWDP from 196'to 734'. Run into hole from 734'to 7950'with 5" drill pipe. Repair Denison driveline yoke and circulate. Wash and ream from 7963'to 8050', 160u gas. PTSM. Circulate and pump 42 bbl high viscosity sweep. Spot 60 bbls Sack-Black 15ppg with low torque 6%pill. PJSM. Check flow. Pull out of the hole from 8050'to 7441'. Pump dry job. Continue pulling out of the hole from 7441'to 2500'. Replace elevator hose. Continue pulling out of the hole from 2500'to 734'. PJSM. Rig up to lay down BHA, HWDP,jars,stabilizers,flex collars,sub and bit. PJSM. Rig up to run wireline and run into hole with same. Cement bond log from 3100'to 2300' 4/29/2011: PTSM. Continue wireline. Rig down wireline. PJSM. Pull wear bushing. Change uppers for 7 5/8"casing. Rig up and test uppers to 250 and 4000 psi(test good). Dummy run landing joint and hanger. PJSM. Rig up floor and Weatherford tools for casing run. PJSM. With Weatherford,make up float collar and shoe. Check floats and run 7 5/8"casing to 1251'. PTSM. Continue running casing from 1251'to 2994". Rig up and circulate casing volume. Continue running into hole with 7 5/8"casing from 2994'to 7951'. Circulate down to 8024'. Verify land out. Rig down Weatherford. Rig up cement hose to circulate. Circulate and condition. 4/30/2011: PTSM. Continue circulation. Rig down circulating head. Rig up cement head. PJSM with BJ cementers Test lines to 400/4000 psi,good test. Pump 30 bbls of seal bond spacer at 10 PPG. Switch back to rig pumps and circulate while BJ repairs cement van. Continue cement job. Pump 129 bbls lead cement at 13.5 ppg and 46 bbls tail cement at 15.8 ppg. Displace cement with rig pumps, bump plug and check floats. Rig down cement head and landing joint. Set pack off and injector packing and test to 3800 psi(good). Rig up floor and lay down 5"drill pipe. PTSM. Continue laying down 5"drill pipe from mouse hole. Install wear ring. Lat down 5" drill pipe, slips, PUP and safety valves. Pick up 4" equipment. PJSM. Change out the saver sub,bell guide and grabber dies. PJSM. Change out upper pipe rams to 4". Weld gussets to break out snub post. Finish change over to 4" liners on mud pumps 1, 2 and 3. 5/1/2011: PTSM, pickup drift,makeup,and run into hole with 4"drill pipe(3160'). PJSM, pull out of hole with 4"drill pipe and stand back and strap stand 156-107. PJSM, pull wear bushing and rig up to test BOPs. Test BOPs, annular 250/2500 psi, rams 250/4000 psi (good). Koomey performance test. PTSM, install wear bushing. PJSM, rig up and test 7-5/8" casing to 2500 psi for 30 minutes, rig down test equipment. PJSM, pickup, makeup, run into hole BHA#3, surface test MWD, to 162'. Pickup, strap, makeup, run into hole 4" HWDP and jars (drift)to surface. Take apart clutch and inspect and troubleshoot, replace dump valve and shim out clutch. 5/2/2011: PTSM. Pick up,drift and run into hole from 4423'to 7888'. Fill pipe and wash down to 7937'.Tag up and drill out float. Continue drilling out float collar and shoe track to 8050'. Drill from 8050'to 8070'. Circulate hole clean. PJSM. Perform FIT test. Drill from 8070'to 8150'. PTSM. Drill from 8150'to 8519'. 5/3/2011: PTSM. Drill from 8519'to 8722'. Circulate and weight up mud via gas buster. Continue drilling fro 8722'to 8733'. PTSM. Drill from 8773'to 9058'. 5/4/2011: PTSM. Drill 9058-9222'.Continue drilling 9222-9316'.Circulate. PJSM,pull out of hole from 9316- to 9145'. PTSM. Pull out of hole from9145 to 8024'. PJSM, service rig. PJSM, run into hole with 4"drill pipe from 8024'-9316'. PJSM, drill 9316-9370'. PJSM, drill 9370-9884'. 5/5/2011: PTSM. Drill 6 3/4"hole from9484'to 9720'begin raising mud weight to 10.4.Circulate bottoms up, gas rose to 2050 units and dropped off to 100 units. Check for flow= positive flow. Close annular. Circulate well with 2 pumps at slow pump rate through gas buster.Build mud weight to 10.6 ppg.Circulate out bubbles. PTSM. Continue circulating at slow pump rate through gas buster, build mud weight to 10.6 and circulate out bubbles.Circulate well with two pumps until 10.6 ppg mud all the way around.Circulate with 3 pumps through the gas buster. Build mud weight to 10.8 ppg. Monitor well. Circulate and weight up to 11 ppg mud weight. 30 CANRIG : 1 Kenai Loop#1 5/6/2011: PTSM. Continue circulate and weight op to 11.2 ppg MWE. Slow pump rate and monitor well. Circulate bottoms up. PJSM.Drill from 9720'to 9734'.Circulate bottoms up.Drill from 9737'to 9750'.Circulate bottoms up. Drill from 9750'to 9765'. Circulate bottoms up. Drill from 9765'to 9782'. Circulate up samples. Make connection and circulate bottoms up. Drill from 9782'to 9835'. PTSM. Drill from 9835'to 9909'. PJSM. Circulate bottoms up and monitor well. PJSM. Pull out of the hole with 4"drill pipe from 9909'to 9341'short trip. PJSM. Run into hole with 4"drill pipe from 9341'to 9909', (25'fill). PJSM. Circulate bottoms up. PJSM. Drill from 9909'to 10036'. 5/7/2011: PTSM. Drill from 10,036'to 10,145'.Continue drilling from 10,145'to 10,195'Circulate,bottoms up, monitor. Continue drilling 10,195'to 10,235. Circulate, bottoms up, monitor. PTSM. Drill from 10,235'to 10,380'. Continue drilling from 10,380'to 10,459'. 5/8/2011:PTSM.Drill from 10459'to 10560'.Flow check and circulate. Drill from 10560'to 10603'.PTSM. Drill from 10603'to 10680'=TD. Circulate. Pump sweep. Circulate and condition mud. PJSM. Pull out of the hole from 106880'to shoe at 8050'. 5/9/2011: PTSM. Lube and service top drive, carrier, crown and blocks. PJSM. Slip 33' drilling line. PJSM. Run into hole from 8050' to 10625'. Wash to 10680', 4' fill. Work and wash through bridges at 9910' and 10236'.Circulate bottoms up. Pump high vis sweep. Check for flow. Pull out of the hole from 10680'to 9848', tight at 10310'. Run into hole from 9848'to 10680'reaming through 10310', 3'fill. Pump high vis sweep,spot pill(hi-vis 11.5 ppg, 15ppb black). PTSM.Continue pumping pill and chase. PJSM.Pull out of the hole with 4" drill pipe from10680' to 2400'. PJSM. Continue pulling out of the hole from 2400' to 13'.. PJSM. Rig down MWD sensators, cables and encoder. Clean rig floor. PJSM. Rig up BOP test equipment.Test annular,VTD valve, Dart valve, check valve, lower TP Valve, valves 8, 7, 9, and outside kill valve. 5/10/2011: PTSM. Continue testing BOPE. Test 250/4000 psi: inside kill, HCR, Manual choke, Lower pipe rams, blind rams, CMVs,2„3,k4,5 and 7. Koomey performance test.Test gas alarms, PVTs and flow alarm. Rig down test equipment, Install wear ring. PJSM. Rig up wireline and log from 8024 to 9421'. Rig down wireline. Inspect torque tube turn buckle pad eyes. Change out 1502 cap. PJSM. Make up BHA and run into hole to 1816'. PTSM. Run into hole from 1816' to 8000'. PJSM. Service the top drive and carrier. Circulate bottoms up. PJSM.Continue running into hole with 4"drill pipe from 8000'to 10680'.Fill pipe.Tag 4'fill. PJSM. Circulate bottoms up. Pump sweep XZ, high gas 140u. 5/11/2011: PTSM.Circulate.Pull out of the hole from 10680'to10644'and circulate bottoms up.Circulate hole clean. PJSM.Check for flow. Pull out of the hole from 10644'to 8000'.Tight at 10480', 10444', 10316', 10078' and 10005'. Run into hole from 8000'to 10646'.Wash to 10680'(2 fill)tight 1000 strokes'. Pump sweep and chase with 2000 strokes. Pull out of the hole from 10680 to 10644'. Pump second 20 bbl sweep. Check for flow.Weight up too 11.7 ppg/mwe. PTSM. Circulate sweep.Continue circulation. Pump dry job. PJSM. Pull out of the hole with 4"drill pipe from 10644'to 6240'. PJSM. Repair top drive compensator cylinder. PJSM. Continue pulling out of the hole from 6240' too bit. PJSM with wireline operators. Rig up for wireline operations. Make up wireline tools. Check for flow (good). PJSM. Run into hole with wire line operation. Monitor well. 5/12/2011: PTSM.Continue running into hole to 10674'. Log up from 10674'to 8000'. Pull out of the hole with wireline, rig down and lay out,caliper missing one of 6 arms. PJSM. Lube and service top drive carrier,crown and blocks. PJSM. Drain and inspect stack for missing caliper arm. Pick up and make up mill and BHA. Run into hole to 744'. PJSM. Run into hole with 4"drill pipe to 8084'.Wash and ream through 8084',8145",8360' and 8443'to 8450'. PTSM. Run into hole with 4"drill pipe from 8460'to 10680'. Tag up-2'fill. PJSM. Mix and pump sweeps-20 bbls. Pump sweep.Circulate bottoms up,Mix and pump dry job.Stand back 1 stand back to 10620'. PJSM. Pull out of the hole with 4"drill pipe from 10620'to surface. 31 CANRIG ir Kenai Loop#1 5/13/2011: PTSM. PJSM with wireline. Rig up density and neutron. Run into hole and attempt to pass 9481' failed. Pull out of the hole with wireline. Re-configure tool assembly. Run into hole. Log from 9400'to 3000'. Rig down and lay out tools. PJSM. Make up BHA. Run into hole to 743'. Run into hole with 4"drill pipe from 743' to 6100'. PTSM. Run into hole with 4" drill pipe from 6100' to 8000'. PJSM. Slip and cut drilling line. Continue running into the hole with 4"drill pipe from 8000'to 9414'. Ream from 9414'to 9448'. Run into hole from 9448'to 10520'. Ream from 10520'to 10580'. Run into hole from 10580'to 10678',2'fill. Stand back 1 stand. PJSM. Circulate and pump sweep (2X). Check for flow and monitor well. PJSM. Pull out of the hole from 10612'to 9500'with 4"drill pipe. PJSM. Pump slick pill(55bbls)at 9500'spot.Continue pulling out of the hole with 4"drill pipe from 9500'to 8000'. PJSM. Pump dry job. Install stripping rubbers and air slips.Continue pulling out of the hole to 7300'with 4"drill pipe. 5/14/2011: PTSM. Continue pulling out of the hole from 7300'to 743'. PJSM. Pull out of the hole with BHA from 743'to surface. PJS> Rig up density and neutron tools. Run into hole with wireline to 9516'. Unable to pass 9516'. PJS>. Run into hole with BHA#8 to 743'.Continue running into hole with 4"drill pipe from 743'to 7994'.PJSM. Lube and service top drive,carrier,crown and blocks.Run into hole from 7994'to 9951'reaming through 9887'. PTSM. Run into hole with 4"drill pipe from 9951'to 10678'. Tag 2'fill. Stand one stand back, flow check and monitor well at 10646'. PJSM. Circulate 3000 strokes. Pump 25 bbl sweep and chase with 8000 strokes. Pump second sweep. PJSM. Spot 7% lubricant pill. PJSM. Pull out of the hole from 10646'to 8000'.Monitor well(static). PJSM. Pump dry job.Prep floor.Continue pulling out of the hole from 8000'to 731' with 4"drill pipe. PJSM. Lay down 4" HWDP from 743'to bit. Lay down LSDP, cross over and stabilizers. 5/15/2011: PTSM. Pull wear bushing. PJSM. Rig up and test variable rams on 4.5". PJSM. Install wear ring. Change out bales and elevators. Rig up fill-up line. Stage centralizers. PJSM. Rig up Weatherford. Run into hole. Check floats. Continue running into hole to 2729'. Change out bales and elevators. Pick up/make up hanger assembly. Run into hole from 2729' to 2790'. PTSM. Run into hole from2790' to 7700'. PJSM. Circulate drill string volume 3250 strokes.PJSM.Continue running into hole from 7700'to 10678'.Tag bottom. Stand back 1 stand. Make up 5'PUP joint.PJSM.Circulate and condition. PJSM.Rig up cement head and 10' PUP joint. Make up wash down line and cement line. PJSM with BJ, all hands. Pump 3 bbls H2O. Pressure test lines. Pump 40 bbls seal bond sweep. Pump cement per plan. 5/16/2011: PTSM. Continue cementing 4.5" liner. Displace and bump plug. Check floats(OK). CIP @ 00:40 hrs.Set liner hanger with 4000 psi. Release from liner and circulate cement out of the hole. PJSM. Pull out of the hole with 4.5" drill pipe from 7884' to BHA> PJSM and lay down BHA. Lay down floor tools and subs. Change out tongs and elevators.Adjust counter weights for tongs. Rig down cement head. Prep floor for 2 7/8". PTSM. Continue rig up for 2 7/8"drill pipe. PJSM. Pick up, drift, make up and stand back 43 stands of 2 7/8"drill pipe. PJSM. Pull wear bushing. PJSM. Change out C.P.R.s from 4"to 2 7/8". PJSM. Rig up to test BOPs.Annular to 250/2500 psi(good).Rams and valves 250/2500 psi(good).Koomey performance test.Test gas alarms, PVTs and flow meter. 5/17/2011: PTSM.Rig up and test CPR.Test CPR to 250/4000 psi. PJSM.Rig down test equipment.Set wear ring. PJSM. Make up BHA to 2 7/8"drill pipe. Mill,X/O,4.5"casing scraper and bit sub. PJSM. Run into hole with 2 7/8"drill pipe from surface to 2704'. PJSM. Make up X-O,X-O pin to pin,&5/8"scraper,bit sub, 1 stand drill pipe and jars. PJSM. Continue running into hole with 4"drill pipe from 2704'to 7891'. PJSM. Fill pipe at top of liner.Continue running into hole with 4"drill pipe. From 7891'to 8482'.PTSM>Run into hole with 4"drill pipe from 8482'to 10565'. PJSM.Attempt to circulate conventionally and reverse circulate without success and rig down. PJSM. Pull out of the hole from 10545'to 7850'. Break circulation and circulate at 7850' 154 spm @ 2000 psi. PJSM. Run into hole and break circulation every 5 stands from 7580'to 10585'. Circulate and pump. 5/18/2011: PTSM. Pump safe surf pill. Pump high vis sweep. Displace mud with 9.6 ppg brine. Shut down circulation. Clean and flush pits and lines. PJSM. Remove shaker screens.Clean shakers through pits 4 and 5.Clean out trip tank. Flush bleeder lines.PJSM.Test casing to 4000 psi.PJSM.Rig-up filter system for brine. 32 CANRIG Kenai Loop#1 PJSM. Start circulating and filtering brine through filter system. Clean pits 1 and 2. PTSM. Continue to circulate and condition brine. Clean pit#3. Filter brine and weight up to 10.2 ppg while circulating. Repair suction rubbers. PJSM. Pull out of the hole laying down 4" drill pipe from 10585'to 6500'. 5/19/2011: PTSM. Pull out of the hole laying down 4" drill pipe from 6500' to 2747'. PJSM. Change out elevators. Install stripping rubber. Lay down1 joint. PJSM. Continue pulling out of the hole. Stand back 35 stands 2 7/8"drill pipe from 2747'to 560'. Lay down 2 7/8"drill pipe from 560'to mill. PJSM. Pick up floor and rig for wireline operations. PJSM. Finish rigging up all wireline equipment. Rig up shives and wireline units. Plumb in air power and fuel to Schlumberger unit. Rig up cable and tools. Load radio-active source. Run into hole with wireline and run CNL, GR and CCL logs. PTSM. Unload sources and rig down Schlumberger wireline. PJSM>Rig down pitcher nipple and equipment above annular. Install shooting flange.PJSM.Rig up Expro wireline. PJSM. Run into hole with wireline—4.5" liner CBL. Rig down 41/"wireline tools and rig up 7 5/8"tools. Run into hole with and cement bond log(CBL)7 5/8"casing. PJSM. Rig down wireline. PJSM. Rig down shooting flange. Rig up pitcher nipple and equipment above annular. 5/20/2011: PTSM.Air up boot to riser and flow line adaptor. Rig up triO-p tank actuator.Button up top of cellar. PJSM. Rig up to test BOPs. PJSM.Test upper top drive valve(fail).Test lower top drive valve(good0.Check all PVTs,TT alarm,G/L alarm and flow line alarm.Test check valve(fail). Rebuild check valve.Test annular to 250/2500 psi(good).Test variable pipe rams(fail).Change out variables to 2 7/8"pipe rams.Change out Top drive valves. PJSM. Test dart valve, upper top drive valve, check valve, choke valves#10, #11, #12, upper pipe rams,floor valve,outside kill,choke valves#6,#9,#8 and lower top drive valve.Test inside kill valve(fail, leak on the well-head). PJSM. Hammer up well-head flange and re-test(fail). Hammer up and test inside kill, choke valves#2, #&, #% (good). Test blinds and valves#3 and#4. PTSM. Continue testing blinds, Choke manifold valves#3 and#4(no good).. Re-dress test plug. Change out choke manifold bleeder. Change out test pump shut in valve. Hammer up spacer tool T/B 2x. Hammer up DSA T/B 2x. Hammer up single and double gate. Open up blind ram doors and inspect/clean. Re-test blind rams and Choke manifold valves#3 and#4 (good test). Test Choke manifold valves#1 (good test). Test HCR(good).Test manual choke valve (good).Test lower pipe rams(good).Test gas alarms(good). Koomey performance test(good).Rig down test equipment. PJSM. Set wear ring. Clean up rig floor, cat walk and cellar. 5/21/2011: PTSM. Change out drilling line. PJSM. Grease top drive, blocks crown and elevators. Set and check C.O.M. Rig down tools,scraper, mill and cross-over subs.Tighten hydraulic leak on O.D.S. Break out line. Service carrier. PJSM.Clean under mud boat. PJSM.Pressure test Expro lines to 250,500, 1000,2500, And 5000 psi. PJSM.Change out suction gasket in number 2 pit. PJSM. Rig up and run into hole with wireline 3.75"gauge ring to 10560'. Log from 9800'to 7800'. PTSM. Continue with wireline operations. Check corn, pull out of the hole and rig down from 3.75". Rig up to run 6.60"gauge ring and junk basket on Expro wireline. Run into hole to liner top 7885'. Pull back to surface and rig down. PJSM with wireline crews. Make up BHA with guns and packer assembly. 5/22/2011: PTSM. Rig up wireline equipment. Run into hole with wireline. Set packer at 9666'. PJSM. Make up BHA and run into hole, shoe. PJSM. Run into hole with 2 7/8"drill pipe from surface to 1871'.Pick up, drift and make up Drill collar and BHA from 1871' to 2138.34'. PJSM. Rig up Weatherford tongs, tie back and tugger. Rig down elevators. Rig up fill line. PJSM. Run into hole with 2 7/8" EVE from 2138'to 4246'. PTSM. Continue running into hole with 2 7/8"EVE from 4226'to 9670'. Stab into seal assemble and test to 500 psi on backside (good). PJSM. Change out elevators and make up test head. Rig up cement hose and Expro equipment to test head. 5/23/2011: PTSM.Waiting on daylight. PJSM. Break circulation. Flush and pressure test lines(BJ)400/5000 psi. PJSM. Displace with nitrogen,47 bbls return.Shut down pump, PJSM. Rig up Expro equipment.Slack off and stab into packer. Set 15Kpsi on packer. Fill Expro lines. Pressure test Expro surface lines to 5000 psi (fail). Hammer up unions and re-test to 5000 psi(good). Bleed to 3500 psi.Open W.V.Bleed back to 2600 psi cushion pressure. Close hydrill and open kill valve. PJSM. Apply 3000 psi to the annulus with rig pumps. 33 CANRIG Kenai Loop#1 Increase to 3500 psi with test pump. Lick Trion tester valve to fail-safe. Open crown valve. Drop bar and fire guns. Flow well to testers. PTSM. Flow well and monitor casing psi and hook load. 5/24/2011:PTSM. Flow well and monitor casing psi and hook load.Continue flowing well and monitor casing psi and hook load. PTSM. Flow well and monitor casing psi and hook load. PJSM. Bleed off casing pressure psi and shut in well and monitor hook load. 5/25/2011: PTSM. Monitor hook load 63-64K. Continue monitoring hook load 63-64K. PJSM, Pressure up annulus to 3000 psi with rig pumps, bring up to 3500 psi with test pump. Bleed off pressure. Pressure up annulus to 3000 psi with rig pumps. Bring up to 3500 psi with test pump. Bleed off to 2500 psi. Flow to well testers. PJSM. Flow well to testers. PTSM. Flow well and monitor casing pressure and hook load. PJSM. Bleed off annular psi from 2860 to 2410 psi. Continue monitoring casing pressure and hook load (48-51 K). PJSM. Bleed off annular psi from 2760 to 2460 psi. Continue monitoring casing pressure and hook load. PJSM. Bleed off annular psi from 2580 to 0 psi(well shut in). Continue to monitor hook load(59K). Pump up annular pressure with test pump to 210 psi and monitor. 5/26/2011:PTSM. Monitor well,200 psi on annulus.Continue to monitor well with 200 psi on annulus. PJSM. Open circular valve,close circular valve.Continue to monitor the well with 400 psi on annulus.PTSM. Monitor hook load and annulus psi. Clean pits. PJSM. Pump up annulus to 700 psi and continue to monitor pressure and hook load. Fill pits and mix brine. 5/27/2011:PTSM. Monitor well,annulus pressure,and hook load.Mix sodium bromide to kill well.Continue to monitor well, annulus pressure, and hook load. Continue to mix sodium bromide. PTSM. Monitor annulus pressure and hook load. Continue to mix kill fluid and pill. PJSM. Pressure annulus to 3500 psi and bleed off to 2500 to open titan valve. PJSM. Rig up and test BJ lines to 6000 psi and bleed back to 3500 psi. Open master valve and bull head 11.0 ppg sodium bromide with BJ pump.Pumped away 55 bbls.Shut down pumps and monitor. Bleed off to 0 psi and monitor(1 bbl return). PJSM. Rig down Flo head, lay down tools, rig up lubricator assembly and wireline. PJSM. Test BJ lines and Expro lubricator head to 3500 psi (good). Open master valve and check tubing pressure (1440 psi)and run in hole with bridge plug. 34 CANRIG otAiMal Kenai Loop#1 4.2 Surveys Measured True Latitude Departure Vertical Dogleg Depth Incl. AZom. Vertical (ft) (ft) Section Rate (ft) ( ) ( ) Depth (ft) N(+), S(-) E(+),W(-) (lncr) (ft) (°/100ft) 0 0 0 0 0 0 0 0 263 0.16 235.23 263.00 -0.21 -0.30 0.36 0.06 388 0.25 253.03 388.00 -0.38 -0.70 0.80 0.09 443 0.33 236.84 443.00 -0.51 -0.95 1.08 0.20 806 0.43 199.17 805.99 -2.35 -2.26 3.34 0.07 995 0.60 220.88 994.98 -3.76 -3.14 5.01 0.14 _1186 1.12 210.63 1185.96 -6.12 -4.74 7.86 0.28 1439 1.26 213.41 1438.91 -10.57 -7.53 13.11 0.06 1884 2.31 213.60 1883.68 -22.12 -15.19 26.96 0.24 2135 2.43 222.202134.47 -30.28 -21.56 37.32 0.15 2388 3.01 215.05 2387.19 -39.69 -28.98 49.30 0.26 2578 3.51 216.26 2576.88 -48.45 -35.28 60.09 0.26 2705 3.71 210.66 2703.63 -55.12 -39.67 68.08 0.32 2833 3.95 212.97 2831.34 -62.38 -44.18 76.63 0.22 __ 3022 4.50 213.84 3019.83 -74.00 -51.85 90.55 0.30 3157 3.61 223.26 3154.49 -81.50 -57.72 100.07 0.82 __ 3220 3.34 229.00 3217.37 -84.15 -60.46 103.89 0.70 3664 0.48 222.21 3661.08 -94.01 -71.47 118.66 0.64 3980 1.23 123.38 3977.05 -96.86 -69.52 122.11 0.44 4043 1.15 105.43 4040.04 -97.40 -68.35 123.41 0.60 4106 0.71 122.61 4103.03 -97.78 -67.41 124.42 0.83 _ 4359 0.70 83.63 4356.01 -98.45 -64.56 127.35 0.19 4423 0.44 79.89 4420.01 -98.36 -63.93 127.98 0.41 4549 0.59 98.50 4546.01 -98.36 -62.81 129.10 0.18 4993 1.02 13.87 4989.97 -94.86 -59.60 133.86 0.25 5184 0.61 47.76 5180.95 -92.51 -58.43 136.47 0.32 5437 0.32 57.69 5433.95 -91.22 -56.83 138.53 0.12 5692 0.49 29.88 5688.94 -89.91 -55.68 140.27 0.10 5880 0.28 13.87 5876.94 -88.71 -55.18 141.52 0.12 6323 0.15 164.80 6319.93 -88.30 -54.76 142.14 0.09 6512 0.10 190.69 6508.93 -88.71 -54.73 142.54 0.04 6767 0.77 194.98 6763.92 -90.57 -55.21 144.47 0.26 7210 0.55 136.09 7206.90 -94.97 -54.50 148.92 0.15 7462 0.82 125.49 7458.88 -96.88 -52.20 151.92 0.12 _ 7526 0.73 127.65 7522.88 -97.40 -51.50 152.78 0.15 7653 0.77 168.43 7649.87 -98.73 -50.69 154.35 0.41 7780 1.06 145.51 7776.85 -100.54 -49.85 156.34 0.36 35 CANRIG rasing Kenai Loop#1 Measured True Latitude Departure Vertical Dogleg Deth Incl. Azim. p ° ° Vertical (ft) (ft) Section Rate (ft) ( ) ( ) Depth (ft) N(+),S(-) E(+),W(-) (Incr)(ft) (1100ft) 7930 1.55 151.96 7926.81 -103.47 -48.12 159.75 0.34 7982 1.82 139.15 7978.79 -104.72 -47.25 161.27 0.88 8136 2.12 147.99 8132.70 -108.98 -44.14 166.54 0.28 8389 3.70 145.40 8385.36 -119.66 -37.03 179.37 0.63 8452 4.30 141.75 8448.21 -123.18 -34.41 183.76 1.03 8581 4.33 129.75 8576.85 -130.09 -27.698 193.41 0.70 8643 3.48 126.33 8638.70 -132.70 -24036 197.63 1.42 8706 3.52 117.65 8701.59 -134.73 -21.140 201.47 0.84 8770 3.02 111.25 8765.48 -136.26 -17.79 205.11 0.96 8833 3.81 107.45 8828.37 -137.49 -14.25 208.86 1.29 8895 4.25 109.45 8890.22 -138.87 -10.13 213.21 0.75 8959 4.26 106.75 8954.04 -140.34 -5.61 217.96 0.31 9022 4.02 111.25 9016.88 -141.83 -1.32 222.51 0.67 9212 5.29 119.80 9206.25 -148.63 12.48 237.89 0.75 9274 5.37 117.63 9267.98 -151.39 17.53 243.64 0.35 9338 5.12 118.31 9331.71 -154.13 22.70 249.49 0.39 9401 5.05 117.26 9394.46 -156.74 27.64 255.08 0.19 9464 4.91 115.71 9457.23 -159.18 32.53 260.55 0.31 9527 4.53 115.40 9520.01 -161.41 37.21 265.73 0.61 9590 3.54 114.99 9582.85 -163.30 41.22 270.16 1.58 9715 4.00 120.18 9707.58 -167.12 48.48 278.37 0.46 9779.65 3.95 116.88 9772.08 -169.26 52.42 282.85 0.36 9842 4.21 122.08 9834.27 -171.45 56.27 287.28 0.72 9970 5.62 122.70 9961.80 -177.33 65.52 298.24 1.10 _10096 5.62 125.43 10087.23 -184.23 75.74 310.57 0.21 10158 5.59 122.73 10148.90 -187.62 80.75 316.62 0.43 10221 6.34 126.15 10211.56 -191.33 86.14 323.16 1.32 10285 7.14 128.04 10275.11 -195.87 92.12 330.67 1.29 _10348 7.21 128.95 10337.62 -200.76 98.28 338.54 0.21 10537 6.45 133.93 10525.28 -215.58 115.14 360.98 0.51 10614 5.51 136.12 10601.86 -221.24 120.81 368.99 1.26 10680 5.51 136.12 10667.56 -225.80 125.20 375.33 0.00 36 CANRIG c0 Tr c c o c c c c z -0 O -a O 0 -C o - ° o - 0 p U 71 a) c m a) c 0 a) c a) c a) c (1) c r a 7 •r 7 a 7 a 7 a 7 - 7 F N asp fa .- - a3 � ca � m � m � Z H Z (9 O < (9 0 T,3 (9 O (9 O (9 O (5 0 o h Zc 1? o c oL Z° cZa) Za) Zc V a) Cl) a) a) a) a) N N U r; Z U U U U r co •tt wCI- C4 v '2° < U) < Qw M Q LL ,- rn Z Z Z Z Z Z Z core O M Q Q Q Q Q = M r z nj z z z z N- in O LL rn rn O f2 O CD CD O CD O N N O O O O CD CD CD 0 Is- O O CO O CO CO CO CD CO • M a0 00 r r r r r r r "- In Co O O CD CD CD CD O I : Z M N- U) U O c0 CO CD CD c0 r M a) C O O CD O CD CD r r r r r r 8, .0 .4. cA ( X N N - - C r r r r r r r r r (1) r r r r 7 1— c0 6 c0 U) LA p a) a) U) U) 7< M < Z CO 0)) U)in cin (00 CCO M CO c �D c.0 CO(0 f/) CO N N N N M N N N N r r r O O r O CD CD CD U) N- N- N- Is- N- I,- N- I-- X N N X X a) N c0 u u U) Ili X J F0 8 U) U) P.3) (13. lO U) UOj 53)>- 2 UU U 0 0 ° * 0 0 0 0 Ua) H ` 13 = U 0 = = co I I I I = I 00 7 O c) a) W - �n I L U) U) U in N - M co 00 N- N- N- N- N- N- N- y r c0 c0 co c0 CO cfl c0 m O O M Ce Ce Et ct M m Z r N N M ce 2 CCW CL CL N M In N MC' ooeQ' Q' c' Ce v o0oN o0000000000000000 V EBF- NI- i- I- 1- F" NcpRMNNN- A- NNNNNNNNN 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 V EONOOOOO O OgOOOOOO2n0O0- 00. 0000000 M N M N M N N N N N N N N M M N N M M = CA000NONI' M M M000lODLONsupTrOD NsLONsNsCDNI' QD OD00 G- c000) 660) 0) O 0ori O6OOO600OOOOOO60) H _ 00• NNN � � � Tr Trommor- r- 666 ,... m 0 � 0C) 0o "C f 0 N N N N N LOLOOLOLID � N N N � W � � WW N f� N N N NN 0) -' 000 (70 O 000001- 001- 1- 0000000 O S2 cccc Tr Tr I- Op Mn Mn Mn MnUlT7TrTrTr2920000-,3gg0g 0 R 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 m 0 • O N O o Tr Mn Cp cp C0 C0 0 M Tr Mn Mn up Mn In cp OO OO OO QD N M[) Mn In W ''''' O . . . . 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L 1.2/8/9 W T u OZ/90O 11, T Fk W y a L I.0 Z/0/9 0 0 0 y 0 - Li.oz/Ei9 �- J ._ ttozz, R n o y d 8, - ILOZ/LF� r+ Y >• Y - 11.0Z/0 VI r Q -y T p 1 - I Loz/6z/4 ► - LL OZ/8z/t, • - L toz/Lz/b - LLOZ/8ZPo t toznszro t' -- LlLIIL LItGLLLOZ/OOZ/OOZZ/Z/6Z/S//EL8OL,Z/V:1://0/0/11t:LLOZR •• Rt - UN - LGOZ/8L/6 iO - LIOZM/t, a - 1.10Z/EL/6 C - L'mere L/e CI . . . , . . , , , . , LIOZ/tt/b O O O 0 0 0 0 0 0 0 0 0 in 0 0 0 0 0 0 0 0 0 0 0 O 0 0 0O 0 O O O 0 0 ro v (, )iui a ^ ro a O Daily Report Page 1 of 1 Buccaneer Alaska Operations wldcat DAILY WELLSITE REPORT Kenai Loop#1 REPORT FOR L.McKenzie/L.Drislill/T Kellestad DATE Apr 14,2011 DEPTH 204 PRESENT OPERATION Stage in BHA/Drill TIME 2400 YESTERDAY 138 24 HOUR FOOTAGE 66 CASING INFORMATION 16"@ 138'RKB DEPTH INCLINATION AZIMUTH VERTICAL DEPTH SURVEY DATA BIT INFORMATION INTERVAL CONDITION REASON NO. SIZE TYPE S/N JETS IN OUT FOOTAGE HOURS T/B/C PULLED 1 13 1/2" HCC-MXL-1X 5189864 TFA=0.7394 138 still in 66 1.1 DRILLING PARAMETERS HIGH LOW AVERAGE CURRENT AVG RATE OF PENETRATION 474.5 @ 191 16.1 @ 142 143.8 47.60645 FT/HR SURFACE TORQUE 1586 @ 191 426 @ 157 709.9 749.98124 AMPS WEIGHT ON BIT 6 @ 197 0 @ 158 1.8 2.85429 KLBS ROTARY RPM 43 @ 145 29 081 153 38.3 43.30431 RPM PUMP PRESSURE 860 (ria 199 584 @ 156. 782.4 825.52692 PSI DRILLING MUD REPORT DEPTH 100 MW 8.8 VIS 68 PV 21 YP 24 FL 15 Gels 10/14/15 CL- 240 FC 2 SOL4 SD - OIL /96 MBL 28 pH 9.5 Ca-, TR CCI MWD SUMMARY INTERVAL TO TOOLS GAS SUMMARY(units) HIGH LOW AVERAGE DITCH GAS 0 @ 204 0 @ 204 0.0 TRIP GAS CUTTING GAS @ (4? WIPER GAS CHROMATOGRAPHY(ppm) SURVEY METHANE(C-1) 0 @ 204 0 @ 204 0.0 CONNECTION GAS HIGH ETHANE(C-2) 0 @ 204 0 @ 204 0.0 AVG PROPANE(C-3) 0 @ 204 0 @ 204. 0.0 CURRENT BUTANE(C-4) 0 @ 204 0 @ 204 0.0 CURRENT BACKGROUND/AVG 0/0 PENTANE(C-5) 0 @ 204 0 @ 204 0.0 HYDROCARBON SHOWS None INTERVAL LITHOLOGY/REMARKS GAS DESCRIPTION LITHOLOGY N/A PRESENT LITHOLOGY PTSM and change out sensator robber on#1 Pump.Weld 2"nipple on conductor.Change out valve on ng floor water manifold.Work on rig audit.Chain down mouse hole.Rig up kill line to DAILY conductor.Inspect derrick and rig-up.PJSM and finish rig audit.PJSM.Prep rig floor for picking up 5"drill pipe.PJSM.Drift,pick up and make up 5"drill pipe.PJSM.Test knife valve and bag. ACTIVITY Performance test Koomey.Test alarms with AOGC.PJSM.Drift,pick up and make up 5"drill pipe and stand back in derrick.Weekly safety meeting.PTSM.Drift,pick up and make up 5"drill pipe SUMMARY and strap.Drift,pick up and make up 5"HWDP strap and stand back.Service top drive,carrier and crown.Stage BHA and pep floor.PJSM.Make up BHA.Clean out conductor from 90'to 138'. Drill new hole from 138'to 198'.. EPOCH PERSONNEL ON BOARD 3 DAILY COST DML 2225.00; RW 895.00;Total 3120.00 REPORT BY John Lundy file://C:\Users\Jim Carson\Documents\My Wells\BUCCANEER\KENAI LOOP#1\DAIL... 6/13/2011 Daily Report Page 1 of 1 Buccaneer Alaska Operations DAILY WELLSITE REPORT Rli Kenai Loop#1 REPORT FOR L.Driskill,L.McAllister,T.Kellestad DATE Apr 15,2011 DEPTH 403 PRESENT OPERATION Drilling TIME 05:25:33 YESTERDAY 204 24 HOUR FOOTAGE 199 CASING INFORMATION 16"@ 138'rkb DEPTH INCLINATION AZIMUTH VERTICAL DEPTH SURVEY DATA BIT INFORMATION INTERVAL CONDITION REASON NO. SIZE TYPE S/N JETS IN OUT FOOTAGE HOURS T/B/C PULLED 1 131/2" HCC-MXL-1 5189864 TFA=0.7394 138 Still in 385 7.0 DRILLING PARAMETERS HIGH LOW AVERAGE CURRENT AVG RATE OF PENETRATION 345.3 a 216 14.1 @ 232 79.6 46.01345 FT/HR SURFACE TORQUE 1895 a 273 412 @ 371 894.2 779.32404 AMPS WEIGHT ON BIT 4 @ 338 0 @ 380 0.6 0.57086 KLBS ROTARY RPM 71 @ 335. 21 a 377 47.7 50.44758 RPM PUMP PRESSURE 1210 @ 207 385 @ 377. 742.0 854.25635 PSI DRILLING MUD REPORT DEPTH 100 MW 8.8 VIS 68 PV 21 YP 24 FL 15 Gels 10/14/15 CL- 240 FC 2 SOL 15 SD - OIL /96 MBL 28 pH 9.5 Ca+ tr CCI MWD SUMMARY INTERVAL TO TOOLS GAS SUMMARY(units) HIGH LOW AVERAGE DITCH GAS 1 @ 290.00000 0 @ 277.00000 0.3 TRIP GAS CUTTING GAS a a WIPER GAS CHROMATOGRAPHY(ppm) SURVEY METHANE(C-1) 0 @ 403 0 @ 403. 0.0 CONNECTION GAS HIGH ETHANE(C-2) 0 a 403 0 @ 403 0.0 AVG PROPANE(C-3) 41 @ 319. 0 a 295 2.9 CURRENT BUTANE(C-4) 152 @ 332 2 @ 303 23.2 CURRENT BACKGROUND/AVG 0/tr PENTANE(C-5) 291 @ 332 0 @ 295 34.7 HYDROCARBON SHOWS none INTERVAL LITHOLOGY/REMARKS GAS DESCRIPTION LITHOLOGY N/A PRESENT LITHOLOGY DAILY ACTIVITY SUMMARY Drilling from 204 to 403'MD EPOCH PERSONNEL ON BOARD 3 DAILY COST N/A REPORT BY John Lundy file://C:\Users\Jim Carson\Documents\My Wells\BUCCANEER\KENAI LOOP#1\DAIL... 6/13/2011 Daily Report Page 1 of 1 Buccaneer Alaska Operations Wildcat DAILY WELLSITE REPORT '�+ Kenai Loop#1 REPORT FOR L.Driskill,L.McAllister,T.Kellestad DATE Apr 15,2011 DEPTH 1556 PRESENT OPERATION Drilling TIME 2400 YESTERDAY 204 24 HOUR FOOTAGE 1352 CASING INFORMATION 16"©138'RKB DEPTH INCLINATION AZIMUTH VERTICAL DEPTH SURVEY DATA BIT INFORMATION INTERVAL CONDITION REASON NO. SIZE TYPE S/N JETS IN OUT FOOTAGE HOURS T/B/C PULLED 1 13 12" HCC-MXL-1 5189864 TFA=.7394 138 STILL IN 1418 16.7 DRILLING PARAMETERS HIGH LOW AVERAGE CURRENT AVG RATE OF PENETRATION 345.3 @ 216. 9.9 (a 801 115.1 80.13712 FT/HR SURFACE TORQUE 2100 @ 914 133 (H� 657 897.4 1249.12805 AMPS WEIGHT ON BIT 13 (8J 584 -1 © 472 3.2 10.46572 KLBS ROTARY RPM 71 i 335 21 (6j 377 46.0 43.30431 RPM PUMP PRESSURE 1608 /; 668 385 (l 377. 1187.1 1380.96265 PSI DRILLING MUD REPORT DEPTH 1366 MW 8.8 VIS 49 PV 11 YP 16 FL 14 Gels 9/18/20 CL- 200 FC 2 SOL5 SD 0.5 OIL /95 MBL 22 pH 9.6 Ca+ 20 CCI MWD SUMMARY INTERVAL TO TOOLS GAS SUMMARY(units) HIGH LOW AVERAGE DITCH GAS 7 @ 1360 0 @ 277.00000 1.0 TRIP GAS CUTTING GAS 0 @ 1556 0 (42 1556.00000 0.0 WIPER GAS CHROMATOGRAPHY(ppm) SURVEY METHANE(C-1) 1268 @ 1360 37 © 1521 182.6 CONNECTION GAS HIGH ETHANE(C-2) 0 @ 1556. 0 @ 1556 0.0 AVG PROPANE(C-3) 41 (B3 319 0 @ 295 0.4 CURRENT BUTANE(C-4) 152 @ 332 2 @ 303 3.4 CURRENT BACKGROUND/AVG 05/0.5 PENTANE(C-5) 291 /p 332 0 (12 295 5.1 HYDROCARBON SHOWS NONE INTERVAL LITHOLOGY/REMARKS GAS DESCRIPTION LITHOLOGY N/A PRESENT LITHOLOGY DAILY ACTIVITY SUMMARY PJSM.Drill from 198'to 440'.PJSM.Continue drilling from 440'to 795.PJSM.Drill from 795 to 1556'. EPOCH PERSONNEL ON BOARD 3 DAILY COST DML;2325.00 RW 715.00;TOTAL 3040.00 REPORT BY John Lundy file://C:\Users\Jim Carson\Documents\My Wells\BUCCANEER\KENAI LOOP#1\DAIL... 6/13/2011 Daily Report Page 1 of 1 Buccaneer Alaska Operations Aildcat DAILY WELLSITE REPORT CAIVF2I41 Kenai Loop#1 REPORT FOR L.Driskill;L.McAllister;T.Kellestad DATE 17 April 2011 DEPTH 3075 PRESENT OPERATION Spooling New drill line. TIME 2400 YESTERDAY 2949 24 HOUR FOOTAGE 126 CASING INFORMATION 16"(83 138'RKB DEPTH INCLINATION AZIMUTH VERTICAL DEPTH SURVEY DATA BIT INFORMATION INTERVAL CONDITION REASON NO. SIZE TYPE S/N JETS IN OUT FOOTAGE HOURS T/B/C PULLED 1 13 1/2" HCC-MXL-1 5189864 TFA 0.7394 138 3075 2937 35.6 1-2-WT-T-E-2-CT-TD TD DRILLING PARAMETERS HIGH LOW AVERAGE CURRENT AVG RATE OF PENETRATION 141.9 @ 2955 9.3 a 3072 64.8 27.27300 FT/HR SURFACE TORQUE 5213 (8 3060 681 (d1 3055 1457.8 1337.21600 AMPS WEIGHT ON BIT 7 (a 2956 -4 a 2951 1.9 5.89900 KLBS ROTARY RPM 57 @ 2951 43 a 3061 51.4 50.44800 RPM PUMP PRESSURE 1599 (a 3006 1451 a 3063. 1529.3 1553.33900 PSI DRILLING MUD REPORT DEPTH 3075/3073 MW 8.8 VIS 48 PV 11 YP 18 FL 8.1 Gels 11/21/23 CL- 200 FC 2 SOL 6 SD 025 OIL /94 MBL 19 pH 9.0 Ca* tr CCI MWD SUMMARY INTERVAL TO TOOLS GAS SUMMARY(units) HIGH LOW AVERAGE DITCH GAS 1 @ 2969. 0 (81 3059 0.8 TRIP GAS 1 CUTTING GAS (Q a WIPER GAS CHROMATOGRAPHY(ppm) SURVEY METHANE(C-1) 353 Ia 3027 36 a 2959. 112.1 CONNECTION GAS HIGH ETHANE(C-2) ca a AVG PROPANE(C-3) ca a CURRENT BUTANE(C-4) Ia a CURRENT BACKGROUND/AVG 0.5/.05 PENTANE(C-5) (0 a HYDROCARBON SHOWS None INTERVAL LITHOLOGY/REMARKS GAS DESCRIPTION LITHOLOGY N/A PRESENT LITHOLOGY DAILY PTSM.Drill from 2949'to 3075'.PJSM.Circulate bottoms up.Monitor well and flow check-good.Mix and pump dry job.Monitor well and flow check-good.PJSM.Pull out of the hole with 5" ACTIVITY drill pipe from 3075to 797',SLM(Strap out,no correction).PJSM.Service rig.PJSM.Run into hole with 5"drill pipe from 797'to 3075',8'fill.PJSM.Circulate,run sweep and circulate.PTSM. SUMMARY Continue circulation.Mix and pump dry job.PJSM.Pull out of the hole from 3075'to 797'with 5"drill pipe.PJSM.Pull out of the hole with HWDP and BHA.Stand back 2 CSDP,bit,and stabilizer. Lay down MWD,filter and short CSDP.Clean floor and stage wire-line tools.PJSM.Rig up wire-line,run logs and rig down.PJSM.Spool new drilling line. EPOCH PERSONNEL ON BOARD 3 DAILY COST DML 3475.00; RW 715.00;Total 4190.00 REPORT BY John Lundy file://C:\Users\Jim Carson\Documents\My Wells\BUCCANEER\KENAI LOOP#1\DAIL... 6/13/2011 Daily Report Page 1 of 1 Buccaneer Alaska Operations Wildcat DAILY WELLSITE REPORT 'yR � 11�� Kenai Loop#1 REPORT FOR L.Driskill;L.Mcallister;T.Kellestad DATE 18 April 2011 DEPTH 3075 PRESENT OPERATION POOH TIME 2400 YESTERDAY 3075 24 HOUR FOOTAGE 0 CASING INFORMATION 10 3/4"@ 3055' DEPTH INCLINATION AZIMUTH VERTICAL DEPTH SURVEY DATA BIT INFORMATION INTERVAL CONDITION REASON NO. SIZE TYPE S/N JETS IN OUT FOOTAGE HOURS T/B/C PULLED N/A DRILLING PARAMETERS HIGH LOW AVERAGE CURRENT AVG RATE OF PENETRATION @ @ FT/HR SURFACE TORQUE @ @ AMPS WEIGHT ON BIT a a KLBS ROTARY RPM @ @ RPM PUMP PRESSURE @ @ PSI DRILLING MUD REPORT DEPTH 3075/3073 MW 8.8 VIS 42 PV 9 YP 14 FL 8 Gels 9/16/18 CL- 200 FC 2 SOL 6 SD 0.25 OIL /94 MBL 17 pH 9.4 Cay tr CCI MWD SUMMARY INTERVAL TO TOOLS GAS SUMMARY(units) HIGH LOW AVERAGE DITCH GAS @ @ TRIP GAS 0 CUTTING GAS @ @ WIPER GAS CHROMATOGRAPHY(ppm) SURVEY METHANE(C-1) @ @ CONNECTION GAS HIGH ETHANE(C-2) @ @ AVG PROPANE(C-3) @ @ CURRENT BUTANE(C-4) @ @ CURRENT BACKGROUND/AVG 0/0 PENTANE(C-5) @ @ HYDROCARBON SHOWS N/A INTERVAL LITHOLOGY/REMARKS GAS DESCRIPTION LITHOLOGY N/A PRESENT LITHOLOGY PTSM.Drain mud motor.Break bit and lay down mud motor.ST Stabilizer and 5 joints 5"drill pipe.PJSM.Clear rig floor and swap tongs.Make up and fill hose.Change bails and elevators.PJSM. DAILY Pick up shoe track and check floats.PJSM.Run into hole with 10 3/"casing to 3055'.PJSM.Rig down Weatherford tongs and slips.PTSM.Change out bails and elevators.Swap tongs and tong ACTIVITY head.Rig down fill-up hose.Clear and clean floor.PJSM.Make up stabbing tool and centralizer.Run into hole from false rotary table to 2969'.Rig up circulating head and circulate.PJSM.Pump SUMMARY 42 bbls mud clean with red die.Pump 3 bbls water and test lines to 2000psi.Mix and pump cement per plan.Check floats.Rig down cement head.Pull out of the hole from 2969'to 2835'.Drop plug.Circulate 2000 strokes.Drop second plug.Circulate.PJSM.Pull out of the hole with stabbing tool and 5"drill pipe from 2835'. EPOCH PERSONNEL ON BOARD 3 DAILY COST DML 3475.00; RW 715.00;Total 4190.00 REPORT BY John Lundy file://C:\Users\Jim Carson\Documents\My Wells\BUCCANEER\KENAI LOOP#1\DAIL... 6/13/2011 Daily Report Page 1 of 1 Buccaneer Alaska Operations Wildcat DAILY WELLSITE REPORT CANRIG Kenai Loop#1 REPORT FOR L.Driskill;L.Mcallister;T.Kellestad DATE 19 April 2011 DEPTH 3075 PRESENT OPERATION Install BOPS TIME 2400 YESTERDAY 3075 24 HOUR FOOTAGE 0 CASING INFORMATION 10 3/4"(81 3055' DEPTH INCLINATION AZIMUTH VERTICAL DEPTH SURVEY DATA BIT INFORMATION INTERVAL CONDITION REASON NO. SIZE TYPE S/N JETS IN OUT FOOTAGE HOURS T/B/C PULLED N/A DRILLING PARAMETERS HIGH LOW AVERAGE CURRENT AVG RATE OF PENETRATION @ (8 FT/HR SURFACE TORQUE @ @ AMPS WEIGHT ON BIT @ @ KLBS ROTARY RPM @ @ RPM PUMP PRESSURE @ @ PSI DRILLING MUD REPORT DEPTH 3075/3073 MW 8.8 VIS 43 PV 9 YP 15 FL 8 Gels 9/16/18 CL- 200 FC 2 SOL 6 SD 0.25 OIL /94 MBL 17 pH 9.3 Can tr CCI MWD SUMMARY INTERVAL TO TOOLS GAS SUMMARY(units) HIGH LOW AVERAGE DITCH GAS @ @ TRIP GAS 0 CUTTING GAS @ a WIPER GAS CHROMATOGRAPHY(ppm) SURVEY METHANE(C-1) @ @ CONNECTION GAS HIGH ETHANE(C-2) @ @ AVG PROPANE(C-3) @ @ CURRENT BUTANE(C-4) @ @ CURRENT BACKGROUND/AVG 0/0 PENTANE(C-5) @ @ HYDROCARBON SHOWS N/A INTERVAL LITHOLOGY/REMARKS GAS DESCRIPTION ,•`—,"'"u LITHOLOGY N/A PRESENT LITHOLOGY PTSM.Continue pulling out of the hole from 2835'to surface.PJSM.Break off stinger and drill pipe stabilizer.Lay down false table.Change out elevators.Clear and clean floor.PJSM.Continue DAILY cleaning pits.Flush annular.Clean cellar and diverter equipment.Hot bolt diverter line,fill,top,flow line,chains,W.O.C.PJSM.Remove diverter,knife valve,flange,kill line,dump valve and mouse ACTIVITY hole.Rig down cellar scaffolding.Make up single gate,mud cross,choke and HCR.Rig down possum belly.Continue cleaning pits.PTSM.Prepare and rough cut 10'/"casing(20.98).Repair 3 SUMMARY dump valve rubbers in pits.Nipple down diverter.Rig down pitcher nipple,Bag,"T"and flow line adaptor.Remove starter head.Fill pits and build mud.Prepare and cut 16"conductor.Final cut 10 3"casing(5.67),dress 10 3",modify shaker possum belly for gas detector.Prepare wellhead.Install DSA,36:spacer spool,single gate,mud-X,kill valves,check valve,double gate,bag,bell guide,work platform,trip tank valve and actuator.Rig up work platform in cellar.Plumb finings for stack EPOCH PERSONNEL ON BOARD 2 DAILY COST DML 2175.00; RW 715.00;Total 2890.00 REPORT BY John Lundy C1_-//!'r-\TT_____\T'.__ !,__-____\Ts__________A_\A.T__ I17_11_\TIT T/,!'rAI.TTT7Tl\TYT'AT A T T /5/571111\75 A TT 0117/'",!ll1 Daily Report Page 1 of 1 Buccaneer Alaska Operations Wildcat DAILY WELLSITE REPORT N 141 Kenai Loop#1 REPORT FOR L.Driskill;L.Mcallister;T.Kellestad DATE 20 April 2011 DEPTH 3075 PRESENT OPERATION Picking up pipe. TIME 2400 YESTERDAY 3075 24 HOUR FOOTAGE 0 CASING INFORMATION 10 3/4"@ 3055' DEPTH INCLINATION AZIMUTH VERTICAL DEPTH SURVEY DATA BIT INFORMATION INTERVAL CONDITION REASON NO. SIZE TYPE S/N JETS IN OUT FOOTAGE HOURS T/B/C PULLED N/A DRILLING PARAMETERS HIGH LOW AVERAGE CURRENT AVG RATE OF PENETRATION @ @ FT/HR SURFACE TORQUE @ @ AMPS WEIGHT ON BIT @ @ KLBS ROTARY RPM @ @ RPM PUMP PRESSURE @ @ PSI DRILLING MUD REPORT DEPTH 3075/3073 MW 8.8 VIS 43 PV 9 YP 15 FL 8 Gels 9/16/18 CL- 200 FC 2 SOL 6 SD 0.25 OIL /94 MBL 17 pH 9.3 Ca* tr CCI MWD SUMMARY INTERVAL TO TOOLS GAS SUMMARY(units) HIGH LOW AVERAGE DITCH GAS @ @ TRIP GAS 0 CUTTING GAS @ @ WIPER GAS CHROMATOGRAPHY(ppm) SURVEY METHANE(C-1) @ @ CONNECTION GAS HIGH ETHANE(C-2) @ @ AVG PROPANE(C-3) @ @ CURRENT BUTANE(C-4) @ @ CURRENT BACKGROUND/AVG 0/0 PENTANE(C-5) @ @ HYDROCARBON SHOWS N/A INTERVAL LITHOLOGY/REMARKS GAS DESCRIPTION LITHOLOGY N/A PRESENT LITHOLOGY PTSM.Nipple up BOP.Install riser,choke shoot,choke hose and choke line.Function test stack.Change out variables ram body and install.Install electrical for possum belly.Clean beaver DAILY strainers.Load pipe rack.Continue nippling up stack.Rig up upper cellar bleeders,air up boots,flow line adaptor,center stack,T.T.activator and install mouse hole.PJSM.Rig up BOP test ACTIVITY equipment.Body test.Rebuild sensator.Tighten kill line flange and double stud adaptor..PTSM.Test 250/4000 psi—upper and lower top drive valves.Test annular to 250/2500 psi,Test upper SUMMARY pipe rams,kill line.Demco dart valve,CMVs 1,10,11,12.Test PVTs,flow and gas detectors.Performance test Koomey.Calibrate chart recorder.Test 250/4000 psi—floor valve,inside and outside kill,check valve,manual choke,HCR,CMV5 2,5,8„7,9,3,4,lower pipe rams and blind rams.Rig down test equipment.Install wear bushing.PJSM.Rig up to test 10'/"casing.Test 10 W casing to 2500 psi for 30 minutes.Blow down choke manifold.Prepare to pick up drill pipe. EPOCH PERSONNEL ON BOARD 3 DAILY COST DML 2470.00; RW 715.00;Total 3185.)) REPORT BY John Lundy file://C:\Users\Jim Carson\Documents\My Wells\BUCCANEER\KENAI LOOP#1\DAIL... 6/13/2011 Daily Report Page 1 of 1 Buccaneer Alaska Operations Wildcat DAILY WELLSITE REPORT FtIG Kenai Loop#1 REPORT FOR L.Driskill;T.Kellestad;L.McAllister DATE Apr 21,2011 DEPTH 3352 PRESENT OPERATION Circulating TIME 2400 YESTERDAY 3075 24 HOUR FOOTAGE 277 CASING INFORMATION 10 3/4"@ 3055' DEPTH INCLINATION AZIMUTH VERTICAL DEPTH SURVEY DATA BIT INFORMATION INTERVAL CONDITION REASON NO. SIZE TYPE S/N JETS IN OUT FOOTAGE HOURS T/B/C PULLED 2 9 7/8" HCC-HCD504ZX 7125519 6-12s 3075 277 1.75 DRILLING PARAMETERS HIGH LOW AVERAGE CURRENT AVG RATE OF PENETRATION 239.7 @ 3097 15.3 @ 3076 156.4 136.23462 FT/HR SURFACE TORQUE 4816 @ 3092 221 @ 3318 1733.8 2247.46167 AMPS WEIGHT ON BIT 13 @ 3128 0 (g 3289 1.8 5.18629 KLBS ROTARY RPM 57 @ 3101 29 @ 3081 46.7 57.59085 RPM PUMP PRESSURE 1553 6 3075 829 6; 3083 1180.8 1258.38367 PSI DRILLING MUD REPORT DEPTH 3225 MW 8.8 VIS 40 PV 6 YP 15 FL 8 Gels 4/5/5 CL- 28000 FC 1 SOL 3 SD - OIL /67 MBL - pH 9.5 Ca-t- 240 CCI MWD SUMMARY INTERVAL TO TOOLS GAS SUMMARY(units) HIGH LOW AVERAGE DITCH GAS 2 @ 3180 0 @ 3076\ 0.6 TRIP GAS 0 CUTTING GAS @ @ WIPER GAS CHROMATOGRAPHY(ppm) SURVEY METHANE(C-1) 472 @ 3273.00000 0 @ 3154.00000 86.2 CONNECTION GAS HIGH ETHANE(C-2) @ @ AVG PROPANE(C-3) @ @ CURRENT BUTANE(C-4) @ @ CURRENT BACKGROUND/AVG 0/0 PENTANE(C-5) @ @ HYDROCARBON SHOWS None INTERVAL LITHOLOGY/REMARKS GAS DESCRIPTION LITHOLOGY Sterling PRESENT LITHOLOGY 90%Sand/sandstone;10%Tuffaceous sittstone DAILY ACTIVITY PTSM.Pick up 5"drill pipe and stand back in derrick.Pick up/make up BHA#2 and Baker tools.PTSM.Run into hole to bottom.Tag up,drill out shoe track and make new hole to 3099'. SUMMARY Circulate hole clean and perform LOT to 15 PPG-MWE.Drill from 3099'to 3352'.Circulate hole clean.Pull out of the hole 4 stands for second LOT. EPOCH PERSONNEL ON BOARD 4 DAILY COST DML 3040.00; RW 715.00;Total 3755.00 REPORT BY John Lundy file://C:\Users\Jim Carson\Documents\My Wells\BUCCANEER\KENAI LOOP#1\DAIL... 6/13/2011 Daily Report Page 1 of 1 Buccaneer Alaska Operations Wildcat DAILY WELLSITE REPORTI� Kenai Loop#1 REPORT FOR L.Driskill;T.Kellestad;;L.McAllister DATE Apr22,2011 DEPTH 4617 PRESENT OPERATION Drilling TIME 2400 YESTERDAY 3352 24 HOUR FOOTAGE 1265 CASING INFORMATION 10 3/4"@ 3055' DEPTH INCLINATION AZIMUTH VERTICAL DEPTH SURVEY DATA BIT INFORMATION INTERVAL CONDITION REASON NO. SIZE TYPE S/N JETS IN OUT FOOTAGE HOURS T/B/C PULLED 2 9 7/8" 9 7/8"HCC-HCD504ZX 7125519 6-12s 3077 1542 14.22 DRILLING PARAMETERS HIGH LOW AVERAGE CURRENT AVG RATE OF PENETRATION 208.6 @ 4494 16.2 @ 4614 118.7 138.91568 FT/HR SURFACE TORQUE 4200 @ 4434 118 @ 3371 1955.2 2570.45215 AMPS WEIGHT ON BIT 11 @ 4389 -2 @ 3421 3.3 2.52229 KLBS ROTARY RPM 86 @ 4489 43 @ 3389 65.1 64.73412 RPM PUMP PRESSURE 1683 @ 4497 858 @ 4438 1352.5 1488.21924 PSI DRILLING MUD REPORT DEPTH 4550/4545 MW 8.9 VIS 40 PV 9 YP 16 FL 7.6 Gels 8/11/- CL- 32000 FC 1 SOL 4 SD 0.5 OIL /96 MBL 4 pH 8.5 Ca+ 1000 CCI MWD SUMMARY INTERVAL TO TOOLS GAS SUMMARY(units) HIGH LOW AVERAGE DITCH GAS 173 @ 4319. 0 @ 3733 40.0 TRIP GAS CUTTING GAS @ @ WIPER GAS 23u CHROMATOGRAPHY(ppm) SURVEY METHANE(C-1) 34594 @ 4319 10 @ 3370 8101.3 CONNECTION GAS HIGH ETHANE(C-2) 52 @ 4319 10 @ 4316 0.1 AVG PROPANE(C-3) @ @ CURRENT BUTANE(C-4) @ @ CURRENT BACKGROUND/AVG 8/13 PENTANE(C-5) @ @ HYDROCARBON SHOWS None INTERVAL LITHOLOGY/REMARKS GAS DESCRIPTION LITHOLOGY Sterling;Interbedded sands,conglomerates and tuffaceous si8stone/claystone with occasional coaly intervals. PRESENT LITHOLOGY 60%Sand/Tuffaceous sand,30%Tuffaceous si8stone,10%Carbonaceous material. DAILY ACTIVITY PTSM.Pull out of the hole from 3352'to 3029'.PJSM.Perform leak off test to 1030psi,14.7 PPG-MWE.PJSM.Run into hole from 3029'to 3352'(no fill).PJSM.Drill from 3352'to 4141'. SUMMARY PTSM.Drill from 4141'to 4490'.PJSM.Circulate hole clean.Check for flow.PJSM.Pull out of the hole from 4490'to 3035'.PJSM.Service top drive,carrier,blocks and crown.Pump up brakes. PJSM.Slip drilling line 33'.PJSM.Run into hole from 3035'to 4427'.Wash to 4490',no fill.Drill from 4490'to 4617'. EPOCH PERSONNEL ON BOARD 4 DAILY COST DML 3040.00; RW 715.00;Total 3595.00 REPORT BY John Lundy file://C:\Users\Jim Carson\Documents\My Wells\BUCCANEER\KENAI LOOP#1\DAIL... 6/13/2011 Daily Report Page 1 of 1 Buccaneer Alaska Operations Wildcat DAILY WELLSITE REPORT ..6110%.,IM' I�.► Kenai Loop#1 REPORT FOR L.Dnskill;T.Kellestad;L.McAllister DATE Apr 23,2011 DEPTH 6012 PRESENT OPERATION Drilling TIME 2400 YESTERDAY 4617 24 HOUR FOOTAGE 1395 CASING INFORMATION 10 3/4"(81 3055' DEPTH INCLINATION AZIMUTH VERTICAL DEPTH SURVEY DATA BIT INFORMATION INTERVAL CONDITION REASON NO. SIZE TYPE S/N JETS IN OUT FOOTAGE HOURS T/B/C PULLED 2 9 7/8" HCC-HCD504ZX 7125519 6-12s 3075 2937 29.4 DRILLING PARAMETERS HIGH LOW AVERAGE CURRENT AVG RATE OF PENETRATION 492.1 @ 5676 13.6 @ 5681 112.9 73.25411 FT/HR SURFACE TORQUE 9514 @ 5877 353 @ 4786 3021.0 3539.42285 AMPS WEIGHT ON BIT 115 @ 4934 -4 @ 5315 4.9 8.23488 KLBS ROTARY RPM 86 @ 4945 0 @ 4934 69.8 71.87740 RPM PUMP PRESSURE 1831 @ 5123 51 (411 4934 1541.2 1727.63110 PSI DRILLING MUD REPORT DEPTH 5880/5878 MW 9.0 VIS 40 PV 8 YP 19 FL 7.6 Gels 7/10/- CL- 28000 FC 1 SOL 5 SD 0.25 OIL /95 MBL 4 pH 9.5 Ca+ 600 CCI MWD SUMMARY INTERVAL TO TOOLS GAS SUMMARY(units) HIGH LOW AVERAGE DITCH GAS 162 (8U 4635 8 @ 5553 51.2 TRIP GAS CUTTING GAS @ @ WIPER GAS CHROMATOGRAPHY(ppm) SURVEY METHANE(C-1) 34624 @ 4635.00000 1205 (l 5553.00000 10423.3 CONNECTION GAS HIGH ETHANE(C-2) 72 @ 5329.00000 12 @ 5326.00000 0.2 AVG PROPANE(C-3) @ @ CURRENT BUTANE(C-4) @ @ CURRENT BACKGROUND/AVG 38/30 PENTANE(C-5) @ @ HYDROCARBON GAS 5950-6012' SHOWS INTERVAL LITHOLOGY/REMARKS GAS DESCRIPTION 5950'to 6012' Sand interbeds in Tuffaceous 118U Max;note show continues below this Conglomeratic sand;medium to coarse and granule;no fragments display any indicators of sittstone interval porosity LITHOLOGY Beluga;Interbedded Tuffaceous sittstone,tuffaceous claystone,sand and occasional coals. PRESENT LITHOLOGY 50%Sand/Conglomeratic sand;40%Tuffaceous claystone;10%Ash DAILY ACTIVITY PTSM.Drill from 4617'to 5100'.PJSM.Pull out of the hole 1 stand.Change out grabber dies.Run into hole 1 stand.continue drilling from 5100'to 5441'.PTSM.Drill from 5441'to 5631'. SUMMARY Troubleshoot rig electrical supply to Canrig gas detector.Drill from 5631'to 6012'. EPOCH PERSONNEL ON BOARD 4 DAILY COST DML 2840.00; RW 715.00;Total 3555.00 REPORT BY John Lundy file://C:\Users\Jim Carson\Documents\My Wells\BUCCANEER\KENAI LOOP#1\DAIL... 6/13/2011 Daily Report Page 1 of 1 Buccaneer Alaska Operations Wildcat DAILY WELLSITE REPORT MIC Kenai Loop#1 REPORT FOR L.Driskill;T.Kellestad;L.McAllister DATE Apr 24,2011 DEPTH 6898 PRESENT OPERATION Drilling TIME 2400 YESTERDAY 8012 24 HOUR FOOTAGE 886 CASING INFORMATION 10 3/4"@ 3055' DEPTH INCLINATION AZIMUTH VERTICAL DEPTH SURVEY DATA BIT INFORMATION INTERVAL CONDITION REASON NO. SIZE TYPE S/N JETS IN OUT FOOTAGE HOURS T/B/C PULLED 2 9 7/8" HCC-HCD5042X 7125519 6-125 3075 3823 42.5 DRILLING PARAMETERS HIGH LOW AVERAGE CURRENT AVG RATE OF PENETRATION 190.7 @ 6330 15.4 @ 6121 73.3 60.27728 FT/HR SURFACE TORQUE 7885 @ 6056 588 @ 6059 3684.3 3260.47681 AMPS WEIGHT ON BIT 14 @ 6608 -5 @ 6771 6.7 8.23486 KLBS ROTARY RPM 86 @ 6818 57 @ 6807 697 79.02067 RPM PUMP PRESSURE 1999 @ 8775 1342 6 6707 1685.3 1870.17224 PSI DRILLING MUD REPORT DEPTH 6746/6743 MW 9.1 VIS 41 PV 9 YP 19 FL 7 Gels 7/10/11 CL- 32000 FC 1 SOL 5 SD 0.25 OIL /95 MBL 6 pH 9.6 Ca+ 400 CCI MWD SUMMARY INTERVAL TO TOOLS GAS SUMMARY(units) HIGH LOW AVERAGE DITCH GAS 287 6 6356,00000 25 @ 6649.00000 83.6 TRIP GAS CUTTING GAS @ @ WIPER GAS 39 CHROMATOGRAPHY(ppm) SURVEY METHANE(C-1) 59111 @ 6356.00000 5214 @ 6649.00000 15621.9 CONNECTION GAS HIGH ETHANE(C-2) 101 @ 6584.00000 7 @ 6591.00000 0.6 AVG PROPANE(C-3) 51 @ 6587.00000 7 @ 6591.00000 0.2 CURRENT BUTANE(C-4) @ @ CURRENT BACKGROUND/AVG 26/30 PENTANE(C-5) @ @ HYDROCARBON SHOWS GAS 6012-6030;6310-6380;6460-8480;6580-6620 INTERVAL LITHOLOGY/REMARKS GAS DESCRIPTION 6012-6030;6310-6380;6460- Typical;Beluga shows 6012-6030=144U;6310-6380=287U;6460 6012-6030=Tuffaceous sand;6310-8380=Tuffaceous sand with coal and conglomerate;6480- 6480;6580-6620 -6480=117U;6580-6620=203U 6480=Tuffaceous/conglomeratic sand;6580-6620=sand/tuffaceous sand/copnglomeratic sand LITHOLOGY Beluga;Interbedded Tuffaceous sittstone,tuffaceous claystone,sand and occasional coals PRESENT LITHOLOGY 30%Sand/tuffaceous sand;30%Tuffaceous sittstone;20%Tuffaceous claystone;10%Ash/tuff;10%Carbonaceous shale DAILY ACTIVITY PTSM.Drill from 6012'to 6581'.PTSM.Circulate hole clean.PJSM.Flow check.Pull out of the hole from 6581'to 6351'.Pump dry job.Pull out of the hole from 6351'to 4427'.Service and SUMMARY lube rig,top drive,crown and blocks and carrier.Trouble shoot disc brakes.PJSM.Run into hole from 4427'to 8520'.Wash from 8520'to 8581'(15'fill).Drill from 6581'to 6898'. EPOCH PERSONNEL ON BOARD 4 DAILY COST 3555.00 REPORT BY John Lundy file://C:\Users\Jim Carson\Documents\My Wells\BUCCANEER\KENAI LOOP#1\DAIL... 6/13/2011 Daily Report Page 1 of 1 Buccaneer Alaska Operations Wildcat DAILY WELLSITE REPORT Cl EPOCH Kenai Loop#1 REPORT FOR L.Driskill;B.Davis DATE Apr 25,2011 DEPTH 7848 PRESENT OPERATION Drilling TIME 2400 YESTERDAY 6898 24 HOUR FOOTAGE 950 CASING INFORMATION 10 3/4"@ 3055' DEPTH INCLINATION AZIMUTH VERTICAL DEPTH SURVEY DATA BIT INFORMATION INTERVAL CONDITION REASON NO. SIZE TYPE S/N JETS IN OUT FOOTAGE HOURS T/B/C PULLED 2 9 7/8" HCC-HCD504ZX 7125519 6-12s 3075 4773 60.5 DRILLING PARAMETERS HIGH LOW AVERAGE CURRENT AVG RATE OF PENETRATION 121.2 @ 7471 11.6 @ 7326 59.7 43.20691 FT/HR SURFACE TORQUE 8721 @ 7661 720 @ 6931 4209.9 4258.81055 AMPS WEIGHT ON BIT 17 @ 7803 -8 @ 7024 7.8 1.52229 KLBS ROTARY RPM 86 @ 6900 57 @ 7794 74.4 71.87740 RPM PUMP PRESSURE 2072 @ 7664 1388 @ 6953 1740.9 1438.42151 PSI DRILLING MUD REPORT DEPTH 7715/7712 MW 9.1 VIS 41 PV 9 YP 21 FL 6.8 Gels 8/10/13 CL- 29000 FC - SOL 5 SD 0.25 OIL /95 MBL 6 pH 9.5 Ca+ 200 CCI MWD SUMMARY INTERVAL TO TOOLS GAS SUMMARY(units) HIGH LOW AVERAGE DITCH GAS 427 @ 7096. 1 @ 7045 112.4 TRIP GAS CUTTING GAS @ @ WIPER GAS CHROMATOGRAPHY(ppm) SURVEY METHANE(C-1) 80087 @ 7641 252 @ 7045. 22213.4 CONNECTION GAS HIGH ETHANE(C-2) 81 @ 7527 0 @ 7779 2.1 AVG PROPANE(C-3) 79 @ 7097 0 @ 7083 2.6 CURRENT BUTANE(C-4) @ @ CURRENT BACKGROUND/AVG 60/55 PENTANE(C-5) @ @ HYDROCARBON SHOWS GAS;7090-7110;7135-7145;7190-7230;7475-7580;7610-7660;7780-7830 INTERVAL LITHOLOGY/REMARKS GAS DESCRIPTION 7090-7110;7135-7145;7190- tYPICAL bELUGA 7090-7110=427u 7135-7145=392u 7090-7110=Sand and coal;7135-7145=sand and coal; 7230;7475-7580;7610-7660; SHOWS 7190-7230=230u 7475-7580=322u 7190-7230=sand 7475-7580=sand 7610-7660=sand 7780-7830 7610-7660=417u 7780-7830=306u and coal 7780-7830=sand and coal LITHOLOGY Beluga;Interbedded Tuffaceous siltstone,tuffaceous claystone,sand and occasional coals PRESENT LITHOLOGY 20%Sand 80%Tuffaceous siltstone;10%Tuffaceous Claystone 10%Ash/tuff DAILY ACTIVITY SUMMARY PTSM.Drill from 6898'to 7341'.PTSM.Drill from 7341'to 7848'. EPOCH PERSONNEL ON BOARD 4 DAILY COST 3555.00 REPORT BY John Lundy file://C:\DOCUMENTS AND SETTINGS\EPOCHADMIN\MY DOCUMENTS\MY WE... 4/26/2011 Daily Report Page 1 of 1 Buccaneer Alaska Operations Wildcat DAILY WELLSITE REPORT �` VFi,�... Kenai Loop#1 REPORT FOR Larry Driskill;Bob Davis DATE Apr 26,2011 DEPTH 8050 PRESENT OPERATION R/U for wire-line TIME 2400 YESTERDAY 7848 24 HOUR FOOTAGE 202 CASING INFORMATION 10 3/4" DEPTH INCLINATION AZIMUTH VERTICAL DEPTH SURVEY DATA BIT INFORMATION INTERVAL CONDITION REASON NO. SIZE TYPE S/N JETS IN OUT FOOTAGE HOURS T/B/C PULLED 2 97/8" HCC-HDP504ZX 7125519 6-12s 3075 8050 4975 86.08 3-2-CT-N-X-1-LT-TD TD DRILLING PARAMETERS HIGH LOW AVERAGE CURRENT AVG RATE OF PENETRATION 78.4 @ 7921 12.0 @ 7980 46.1 2533017 FT/HR SURFACE TORQUE 7385 @ 7922 1777 @ 7990 4494.9 3407.29053 AMPS WEIGHT ON BIT 13 @ 8050 -2 @ 7974 8.3 13.51030 KLBS ROTARY RPM 86 @ 7888 64 @ 7986 76.7 79.02067 RPM PUMP PRESSURE 2035 @ 7926 1407 @ 7974 1789.4 1764.02173 PSI DRILLING MUD REPORT DEPTH 8050/8047 MW 9.3 VIS 40 PV 11 YP 22 FL 6.8 Gels 11/13/14 CL- 28000 FC 1 SOL 5 SD 0.1 OIL /95 MBL 6 pH 9.7 Ca+ 200 CCI MWD SUMMARY INTERVAL TO TOOLS GAS SUMMARY(units) HIGH LOW AVERAGE DITCH GAS 215 @ 7920 24 @ 7957 95.7 TRIP GAS CUTTING GAS @ @ WIPER GAS 128 CHROMATOGRAPHY(ppm) SURVEY METHANE(C-1) 44887 @ 7919.00000 4726 @ 7957.00000 19014.1 CONNECTION GAS HIGH ETHANE(C-2) @ @ AVG PROPANE(C-3) @ @ CURRENT BUTANE(C-4) @ @ CURRENT BACKGROUND/AVG 0/40 PENTANE(C-5) @ @ HYDROCARBON SHOWS Gas:7855-7875;7915-7945;7955-7980;7990-8000 INTERVAL LITHOLOGY/REMARKS GAS DESCRIPTION 7855-7875;7915-7945;7955-7980; Typical Beluga Shows 7855-7875=183u;7915-7945=215u;7955-7980=180u; 7855-7875=Sand;7915-7945 u-Sand;7955-7980=Sand and coal;7990-8000 7990-8000 7990-8000=190u =Sand and coal LITHOLOGY Beluga;Interbedded Tuffaceous sifstone,tuffaceous claystone,sand and occasional coals PRESENT LITHOLOGY 10%Sand;40%Tuffaceous Sihstone;50%Tuffaceous Claystone PTSM.Drill from 7848'to 8000'.Circulate up samples at 8000'.Pump high viscosity sweep and circulate out.Check for flow.PJSM.Pull out of the hole from 8000'to 7658'.Check for flow.Pump DAILY ACTIVITY DAILYdry job.Continue pulling out of the hole from 7658'to 6851'.PJSM.Run into hole from 6851'to 8000'(5'fill).PTSM.Drill from 8000'to 8050'.Circulate up samples.Pump 42 bbls high viscosity SUMMARY sweep.Check for flow.Pump dry job.PJSM.Pull out of the hole from 8050'to 824'SLM.PJSM.Pull out of the hole standing back 5"HWDP and jars.Lay down BHA.Stand back NMCSDP. Clear floor and clean up.PJSM.Rig up wire-line. EPOCH PERSONNEL ON BOARD 4 DAILY COST 4755.00 REPORT BY John Lundy F;lo•//(`•\TTeo,•.5\T;,v, c.,,,,,,,"\n",„,,,.,,,-0\lTx, Ulolle\RTTCP AAT>~1 D\V1:ATAT I ( CD -hEl\Tl ATT A/12/')(111 Daily Report Page 1 of 1 Buccaneer Alaska Opns,LLC wildcat DAILY WELLSITE REPORT CArsI Kenai Loop#1 RAG REPORT FOR Larry McAllister,Bob Davis DATE May 27,2011 DEPTH 10678.00000 PRESENT OPERATION RIH with plug TIME 2400 YESTERDAY 10678.00000 24 HOUR FOOTAGE 0 CASING INFORMATION 7 5/8"(�8024'4 12"@ 10678'/hanger @ 7891' DEPTH INCLINATION AZIMUTH VERTICAL DEPTH SURVEY DATA BIT INFORMATION INTERVAL CONDITION REASON NO. SIZE TYPE S/N JETS IN OUT FOOTAGE HOURS T/B/C PULLED DRILLING PARAMETERS HIGH LOW AVERAGE CURRENT AVG RATE OF PENETRATION (H1 § FT/HR SURFACE TORQUE § § AMPS WEIGHT ON BIT § § KLBS ROTARY RPM § § RPM PUMP PRESSURE § § PSI DRILLING MUD REPORT DEPTH 10680/10667 MW 11.0 VIS PV YP FL Gels CL- Brine FC SOL SD OIL MBL pH 7.8 Ca. CCI MWD SUMMARY INTERVAL TO TOOLS GAS SUMMARY(units) HIGH LOW AVERAGE DITCH GAS @ § TRIP GAS CUTTING GAS @ § WIPER GAS CHROMATOGRAPHY(ppm) SURVEY METHANE(C-1) § § CONNECTION GAS HIGH ETHANE(C-2) @ @ AVG PROPANE(C-3) @ § CURRENT BUTANE(C-4) § § CURRENT BACKGROUND/AVG PENTANE(C-5) § 41 HYDROCARBON SHOWS INTERVAL LITHOLOGY/REMARKS GAS DESCRIPTION LITHOLOGY PRESENT LITHOLOGY PTSM.Monitor well,annulus pressure,and hook load.Mix sodium bromide to kill well.Continue to monitor well.annulus pressure,and hook load.Continue to mix sodium bromide.PTSM.Monitor DAILY annulus pressure and hook load.Continue to mix kill fluid and pill.PJSM.Pressure annulus to 3500 psi and bleed off to 2500 to open titan valve.PJSM.Rig up and test BJ lines to 6000 psi and ACTIVITY bleed back to 3500 psi.Open master valve and bull head 11.0 ppg sodium bromide with BJ pump.Pumped away 55 bbls.Shut down pumps and monitor.Bleed off to 0 psi and monitor(1 bbl SUMMARY return).PJSM.Rig down Flo head,lay down tools,rig up lubricator assembly and wireline.PJSM.Test BJ lines and Expro lubricator head to 3500 psi(good).Open master valve and check tubing pressure(1440 psi)and run in hole with bridge plug. EPOCH PERSONNEL ON BOARD 1 DAILY COST$3215 REPORT BY Zach Beekman file://C:\Users\Jim Carson\Documents\My Wells\BUCCANEER\KENAI LOOP#1\DAIL... 6/13/2011 Daily Report Page 1 of 1 Buccaneer Alaska Operations Wildcat DAILY WELLSITE REPORT Kenai Loop#1 CANRIG REPORT FOR Larry Driskill;Bob Davis DATE Apr 28,2011 DEPTH 8050 PRESENT OPERATION Wireline Logging TIME 2400 YESTERDAY 8050 24 HOUR FOOTAGE 0 CASING INFORMATION 10 3/4"@ 3055' SURVEY DATA DEPTH INCLINATION AZIMUTH VERTICAL DEPTH BIT INFORMATION INTERVAL CONDITION REASON NO. SIZE TYPE S/N JETS IN OUT FOOTAGE HOURS T/B/C PULLED 2RR 9 7/8" HCC-HCD504ZX 7125519 6-12s 8050 8050 N/A N/A CLEANOUT LOGS DRILLING PARAMETERS HIGH LOW AVERAGE CURRENT AVG RATE OF PENETRATION @ @ FT/HR SURFACE TORQUE @ @ AMPS WEIGHT ON BIT @ @ KLBS ROTARY RPM @ @ RPM PUMP PRESSURE @ @ PSI DRILLING MUD REPORT DEPTH 8050/8046 MW 9.4 VIS 44 PV 10 YP 22 FL 6.6 Gels 9/11/13 CL- 28000 FC 1 SOL 6 SD 0.1 OIL /96 MBL 7 pH 9.4 Ca+ 180 CCI MWD SUMMARY INTERVAL TO TOOLS GAS SUMMARY(units) HIGH LOW AVERAGE DITCH GAS @ @ TRIP GAS 160u CUTTING GAS @ @ WIPER GAS CHROMATOGRAPHY(ppm) SURVEY METHANE(C-1) @ @ CONNECTION GAS HIGH ETHANE(C-2) @ @ AVG PROPANE(C-3) @ @ CURRENT BUTANE(C-4) @ @ CURRENT BACKGROUND/AVG 0/3 PENTANE(C-5) @ @ HYDROCARBON SHOWS None INTERVAL LITHOLOGY/REMARKS GAS DESCRIPTION LITHOLOGY Beluga;Interbedded Tuffaceous siltstone,tuffaceous claystone,sand and occasional coals PRESENT LITHOLOGY 10%Sand;40%Tuffaceous Siltstone;50%Tuffaceous Claystone PTSM.Continue wireline.Rig down wireline(tool failure).PJSM.Slip 120',cut 145'drill line.Adjust brakes.PJSM.Service rig and top drive. DAILY PJSM.Make up BHA.Run into hole with HWDP from 196'to 734'.Run into hole from 734'to 7950'with 5"drill pipe.Repair Denison driveline ACTIVITY yoke and circulate.Wash and ream from 7963'to 8050',160u gas.PTSM.Circulate and pump 42 bbl high viscosity sweep.Spot 60 bbls Sack- SUMMARY Black 15ppg with low torque 6%pill.PJSM.Check flow.Pull out of the hole from 8050'to 7441'.Pump dry job.Continue pulling out of the hole from 7441'to 2500'.Replace elevator hose.Continue pulling out of the hole from 2500'to 734'.PJSM.Rig up to lay down BHA,HWDP,jars, stabilizers,flex collars,sub and bit.PJSM.Rig up to run wireline and run into hole with same.Cement bond log from 3100'to 2300'. EPOCH PERSONNEL ON BOARD 3 DAILY COST 4980.00 REPORT BY John Lundy file://C:\DOCUMENTS AND SETTINGS\EPOCHADMIN\MY DOCUMENTS\MY WE... 4/29/2011 Daily Report Page 1 of 1 Buccaneer Alaska Operations II Wildcat DAILY WELLSITE REPORT Kenai Loop#1 CANk G REPORT FOR Larry McAllister;Bob Davis DATE Apr 29,2011 DEPTH 8050 PRESENT OPERATION Circulate CSG TIME 2400 YESTERDAY 8050 24 HOUR FOOTAGE 0 CASING INFORMATION 10 3/4"@ 3055'7 5/8"Cementing SURVEY DATA DEPTH INCLINATION AZIMUTH VERTICAL DEPTH BIT INFORMATION INTERVAL CONDITION REASON NO. SIZE TYPE S/N JETS IN OUT FOOTAGE HOURS T/B/C PULLED N/A DRILLING PARAMETERS HIGH LOW AVERAGE CURRENT AVG RATE OF PENETRATION @ @ FT/HR SURFACE TORQUE @ @ AMPS WEIGHT ON BIT @ @ KLBS ROTARY RPM @ @ RPM PUMP PRESSURE @ @ PSI DRILLING MUD REPORT DEPTH 8050/8046 MW 9.3 VIS 40 PV 11 YP 17 FL 7 Gels 6/9/12 CL- 27000 FC 1 SOL 6 SD 0.1 OIL /94 MBL 7 pH 9.3 Ca+ 180 CCI MWD SUMMARY INTERVAL TO TOOLS GAS SUMMARY(units) HIGH LOW AVERAGE DITCH GAS @ @ TRIP GAS 11u CUTTING GAS @ @ WIPER GAS CHROMATOGRAPHY(ppm) SURVEY METHANE(C-1) @ @ CONNECTION GAS HIGH ETHANE(C-2) @ @ AVG PROPANE(C-3) @ @ CURRENT BUTANE(C-4) @ @ CURRENT BACKGROUND/AVG 0/2 PENTANE(C-5) @ @ HYDROCARBON SHOWS None INTERVAL LITHOLOGY/REMARKS GAS DESCRIPTION LITHOLOGY Beluga;Interbedded Tuffaceous siltstone,tuffaceous claystone,sand and occasional coals PRESENT LITHOLOGY 10%Sand;40%Tuffaceous Siltstone;50%Tuffaceous Claystone PTSM.Continue wireline.Rig down wireline.PJSM.Pull wear bushing.Change uppers for 7 5/8"casing.Rig up and test uppers to 250 and DAILY 4000 psi(test good).Dummy run landing joint and hanger.PJSM.Rig up floor and Weatherford tools for casing run.PJSM.With Weatherford, ACTIVITY make up float collar and shoe.Check floats and run 7 5/8"casing to 1251'.PTSM.Continue running casing from 1251'to 2994".Rig up and SUMMARY circulate casing volume.Continue running into hole with 7 5/8"casing from 2994'to 7951'.Circulate down to 8024'.Verify land out.Rig down Weatherford.Rig up cement hose to circulate.Circulate and condition. EPOCH PERSONNEL ON BOARD 3 DAILY COST 3780.00 REPORT BY John Lundy L.l_-//!"A.\7\!1!17 TA/1-171k TTV A'ATT C'T!TTTTATl'C"T.'TWA!,T T A TA/TTATA KAT TN f'1 T TA.T1-71TTT V\l\4AT AI 7T A/?/1/l1/\11 Daily Report Page 1 of 1 Buccaneer Alaska Operations Wildcat DAILY WELLSITE REPORT CANKenai Loop#1 RAG REPORT FOR Larry McAllister;Bob Davis DATE Apr 30,2011 DEPTH 8050 PRESENT OPERATION W/O pumps. TIME 2400 YESTERDAY 8050 24 HOUR FOOTAGE 0 CASING INFORMATION 7 5/8 @ 8024' SURVEY DATA DEPTH INCLINATION AZIMUTH VERTICAL DEPTH BIT INFORMATION INTERVAL CONDITION REASON NO. SIZE TYPE S/N JETS IN OUT FOOTAGE HOURS T/B/C PULLED N/A DRILLING PARAMETERS HIGH LOW AVERAGE CURRENT AVG RATE OF PENETRATION @ @ FT/HR SURFACE TORQUE @ @ AMPS WEIGHT ON BIT @ @ KLBS ROTARY RPM @ @ RPM PUMP PRESSURE @ @ PSI DRILLING MUD REPORT DEPTH 8050/8046 MW 9.3 VIS 45 PV 10 YP 19 FL 7 Gels 5/9/14 CL- 27000 FC 1 SOL 6 SD tr OIL /94 MBL 6 pH 9.7 Ca+ 200 CCI MWD SUMMARY INTERVAL TO TOOLS GAS SUMMARY(units) HIGH LOW AVERAGE DITCH GAS @ @ TRIP GAS CUTTING GAS @ @ WIPER GAS CHROMATOGRAPHY(ppm) SURVEY METHANE(C-1) @ @ CONNECTION GAS HIGH ETHANE(C-2) @ @ AVG PROPANE(C-3) @ @ CURRENT BUTANE(C-4) @ @ CURRENT BACKGROUND/AVG 0/0 PENTANE(C-5) @ @ HYDROCARBON SHOWS None INTERVAL LITHOLOGY/REMARKS GAS DESCRIPTION LITHOLOGY Beluga;Interbedded Tuffaceous siltstone,tuffaceous claystone,sand and occasional coals PRESENT LITHOLOGY 10%Sand;40%Tuffaceous Siltstone;50%Tuffaceous Claystone PTSM.Continue circulation.Rig down circulating head.Rig up cement head.PJSM with B.J..Test lines to 400/4000 psi,good test.Pump 30 bbls of seal bond spacer at 10 PPG.Switch back to rig pumps and circulate while BJ repairs cement van.Continue cement job.Pump 129 bbls DAILY lead cement at 13.5 ppg and 46 bbls tail cement at 15.8 ppg.Displace cement with rig pumps,bump plug and check floats.Rig down cement ACTIVITY head and landing joint.Et pack off and injector packing and test to 3800 psi(good).Rig up floor and lay down 5"drill pipe.PTSM.Continue laying SUMMARY down 5"drill pipe from mouse hole.Install wear ring.Lat down 5"drill pipe,slips,PUP and safety valves.Pick up 4"equipment.PJSM.Change out the saver sub,bell guide and grabber dies.PJSM.Change out upper pipe rams to 4".Weld gussets to break out snub post.Finish change over to 4"liners on mud pumps 1,2 and 3. EPOCH PERSONNEL ON BOARD 3 DAILY COST 3580 REPORT BY John Lundy file://C:\DOCUMENTS AND SETTINGS\EPOCHADMIN\MY DOCUMENTS\MY WEL... 5/1/2011 Daily Report Page 1 of 1 Buccaneer Alaska Operations Wildcat DAILY WELLSITE REPORT Kenai Loop#1 CANRIG REPORT FOR Larry McAllister;Bob Davis DATE May 1,2011 DEPTH 8050 PRESENT OPERATION Working on drawworks TIME 2400 YESTERDAY 8050 24 HOUR FOOTAGE 0 CASING INFORMATION 7 5/8 @ 8024' SURVEY DATA DEPTH INCLINATION AZIMUTH VERTICAL DEPTH BIT INFORMATION INTERVAL CONDITION REASON NO. SIZE TYPE S/N JETS IN OUT FOOTAGE HOURS T/B/C PULLED 3 6.75 HCC-QD505X 7026407 8050 0 0 DRILLING PARAMETERS HIGH LOW AVERAGE CURRENT AVG RATE OF PENETRATION @ @ FT/HR SURFACE TORQUE @ @ AMPS WEIGHT ON BIT @ @ KLBS ROTARY RPM @ @ RPM PUMP PRESSURE @ @ PSI DRILLING MUD REPORT DEPTH 8050/8046 MW 9.3 VIS 35 PV 10 YP 15 FL 7 Gels 5/9/14 CL- 27000 FC 1 SOL 6 SD tr OIL /94 MBL 6 pH 9.7 Ca+ 200 CCI MWD SUMMARY INTERVAL TO TOOLS GAS SUMMARY(units) HIGH LOW AVERAGE DITCH GAS @ @ TRIP GAS CUTTING GAS @ @ WIPER GAS CHROMATOGRAPHY(ppm) SURVEY METHANE(C-1) @ @ CONNECTION GAS HIGH ETHANE(C-2) @ @ AVG PROPANE(C-3) @ @ CURRENT BUTANE(C-4) @ @ CURRENT BACKGROUND/AVG 0/0 PENTANE(C-5) @ @ HYDROCARBON SHOWS None INTERVAL LITHOLOGY/REMARKS GAS DESCRIPTION LITHOLOGY Beluga;Interbedded Tuffaceous siltstone,tuffaceous claystone,sand and occasional coals PRESENT LITHOLOGY 10%Sand;40%Tuffaceous Siltstone;50%Tuffaceous Claystone PTSM,pickup drift,makeup,and run into hole with 4"drill pipe(3160').PJSM,pull out of hole with 4"drill pipe and stand back and strap stand DAILY 156-107.PJSM,pull wear bushing and rig up to test BOPS.Test BOPs,annular 250/2500 psi,rams 250/4000 psi(good).Koomey performance ACTIVITY test.PTSM,install wear bushing.PJSM,rig up and test 7-5/8"casing to 2500 psi for 30 minutes,rig down test equipment.PJSM,pickup, SUMMARY makeup,run into hole BHA#3,surface test MWD,to 162'.Pickup,strap,makeup,run into hole 4"HWDP and jars(drift)to surface.Take apart clutch and inspect and troubleshoot,replace dump valve and shim out clutch. EPOCH PERSONNEL ON BOARD 4 DAILY COST 3630.00 REPORT BY Greg Hammond file://C:\Documents and Settings\EpochAdmin\My Documents\My Wells\Buccaneer\20110... 5/2/2011 Daily Report Page 1 of 1 Buccaneer Alaska Operations Wildcat DAILY WELLSITE REPORT CAN Kenai Loop#1 RAG REPORT FOR Larry McAllister;Bob Davis DATE May 02,2011 DEPTH 8519 PRESENT OPERATION Drilling TIME 2400 YESTERDAY 8050 24 HOUR FOOTAGE 469 CASING INFORMATION 7 5/8"@ 8024' DEPTH INCLINATION AZIMUTH VERTICAL DEPTH SURVEY DATA BIT INFORMATION INTERVAL CONDITION REASON NO. SIZE TYPE S/N JETS IN OUT FOOTAGE HOURS T/B/C PULLED 3 6 3/4" HCC-QD505X 7026407 5-11s 8050 STILL IN 469 13.01 DRILLING PARAMETERS HIGH LOW AVERAGE CURRENT AVG RATE OF PENETRATION 146.7 @ 8340. 9.7 @ 8475 42.8 43.33068 FT/HR SURFACE TORQUE 4302 @ 8411 1645 @ 8425. 2852.7 2291.50586 AMPS WEIGHT ON BIT 16 @ 8057 1 @ 8456 10.1 9.23857 KLBS ROTARY RPM 86 @ 8099 57 @ 8197 71.9 86.16394 RPM PUMP PRESSURE 2041 @ 8344 1411 @ 8111 1749.4 1725.71582 PSI DRILLING MUD REPORT DEPTH 8519/8516 MW 9.3 VIS 45 PV 9 YP 19 FL 6.6 Gels 6/10/12 CL- 24000 FC 1 SOL 6 SD 0.25 OIL 1/93 MBL 6 pH 9.7 Ca+ 200 CCI MWD SUMMARY INTERVAL TO TOOLS GAS SUMMARY(units) HIGH LOW AVERAGE DITCH GAS 973 @ 8467 1 @ 8084 89.2 TRIP GAS CUTTING GAS @ @ WIPER GAS CHROMATOGRAPHY(ppm) SURVEY METHANE(C-1) 200518 @ 8467 243 @ 8084 17275.0 CONNECTION GAS HIGH 103 ETHANE(C-2) 327 @ 8468 0 @ 8422 8.1 AVG 80 PROPANE(C-3) 107 @ 8338 0 @ 8457 3.8 CURRENT 103 BUTANE(C-4) 30 @ 8339 1 @ 8344 0.3 CURRENT BACKGROUND/AVG 24/35 PENTANE(C-5) @ @ HYDROCARBON SHOWS Gas;8330-8345;8460-8475 INTERVAL LITHOLOGY/REMARKS GAS DESCRIPTION 8330-8345;8460-8475 Primarily coal shows 8330-8345=673u;8460-8475=973u Sand and coal trace visible porosity LITHOLOGY Tyonek;Interbedded tuffaceous claystone,tuffaceous siltstone,tuffaceous sandstone and coal with occasional thin ash/tuff intervals and carbonaceous shale stringers. PRESENT 40%Tuffaceous sand/sandstone;30%Tuffaceous claystone;30%Tuffaceous siltstone. LITHOLOGY DAILY ACTIVITY PTSM.Pick up,drift and run into hole from 4423'to 7888'.Fill pipe and wash down to 7937'.Tag up and drill out float.Continue drilling out SUMMARY float collar and shoe track to 8050'.Drill from 8050'to 8070'.Circulate hole clean.PJSM.Perform FIT test.Drill from 8070'to 8150'.PTSM. Drill from 8150'to 8519'. EPOCH PERSONNEL ON BOARD 4 DAILY COST 3630.00 REPORT BY John Lundy file://C:\DOCUMENTS AND SETTINGS\EPOCHADMIN\MY DOCUMENTS\MY WEL... 5/3/2011 Daily Report Page 1 of 1 Buccaneer Alaska Operations Wildcat DAILY WELLSITE REPORT Kenai Loop#1 IICArsik G REPORT FOR Larry McAllister;Bob Davis DATE May 03,2011 DEPTH 9058.00000 PRESENT OPERATION Drilling TIME 2400 YESTERDAY 8519.00000 24 HOUR FOOTAGE 539 CASING INFORMATION 7/5/8"@ 8024' SURVEY DATA DEPTH INCLINATION AZIMUTH VERTICAL DEPTH BIT INFORMATION INTERVAL CONDITION REASON NO. SIZE TYPE S/N JETS IN OUT FOOTAGE HOURS T/B/C PULLED 3 63/4 HCC-QD505X 7026407 5-11s 8050 Still in 1008 29.6 DRILLING PARAMETERS HIGH LOW AVERAGE CURRENT AVG RATE OF PENETRATION 103.4 @ 8665 8.2 @ 9036 39.4 34.26418 FT/HR SURFACE TORQUE 3906 @ 8841 1777 @ 8600 2781.8 3436.65332 AMPS WEIGHT ON BIT 14 @ 8647 0 @ 8700 5.9 2.85429 KLBS ROTARY RPM 86 @ 8529 57 @ 8801 74.8 86.16394 RPM PUMP PRESSURE 1988 © 8730 1074 @ 8796. 1721.5 1762.10645 PSI DRILLING MUD REPORT DEPTH 8990/8984 MW 10.0 VIS 42 PV 11 YP 19 FL 6.5 Gels 8/9/12 CL- 31000 FC 1 SOL 9.5 SD 0.75 OIL 0.75/90 MBL 10 pH 9.7 Ca+ 200 CCI MWD SUMMARY INTERVAL TO TOOLS GAS SUMMARY(units) HIGH LOW AVERAGE DITCH GAS 1194 @ 8701 18 @ 9057.00000 185.0 TRIP GAS CUTTING GAS @ @ WIPER GAS CHROMATOGRAPHY(ppm) SURVEY METHANE(C-1) 238060 @ 8701 6788 @ 8734 33999.7 CONNECTION GAS HIGH ETHANE(C-2) 279 @ 8701 0 @ 8633 15.2 AVG PROPANE(C-3) 179 @ 8701 0 @ 8603. 9.2 CURRENT BUTANE(C-4) 27 @ 8780. 0 @ 8603 0.3 CURRENT BACKGROUND/AVG 75/100 PENTANE(C-5) @ @ HYDROCARBON SHOWS Gas:Numerous thin porosity and coal shows between 8850 and 9058'. INTERVAL LITHOLOGY/REMARKS GAS DESCRIPTION LITHOLOGY Tyonek;Interbedded tuffaceous claystone,tuffaceous siltstone,tuffaceous sandstone and coal with occasional thin ash/tuff intervals and PRESENT 60%Sand/tuffaceous sand;30%Tuffaceous siltstone;10%Calcareous tuff LITHOLOGY DAILY ACTIVITY PTSM.Drill from 8519'to 8722'.Circulate and weight up mud via gas buster.Continue drilling fro 8722'to 8733'.PTSM.Drill from SUMMARY 8773'to 9058'. EPOCH PERSONNEL ON BOARD 4 DAILY COST 3630.00 REPORT BY John Lundy file://C:\DOCUMENTS AND SETTINGS\EPOCHADMIN\MY DOCUMENTS\MY WEL... 5/4/2011 Daily Report Page 1 of 1 Buccaneer Alaska Operations Wildcat DAILY WELLSITE REPORT CANRAG Kenai Loop#1 REPORT FOR Larry McAllister,Bob Davis DATE May 04,2011 DEPTH 9484 PRESENT OPERATION Drilling TIME 24:00 YESTERDAY 9058 24 HOUR FOOTAGE 426 CASING INFORMATION 7-5/8"@ 8024' SURVEY DATA DEPTH INCLINATION AZIMUTH VERTICAL DEPTH BIT INFORMATION INTERVAL CONDITION REASON NO. SIZE TYPE S/N JETS IN OUT FOOTAGE HOURS T/B/C PULLED 3 6-3/4" HCC-QD505X 7026407 5x11s 8050 still in 1434' 44 DRILLING PARAMETERS HIGH LOW AVERAGE CURRENT AVG RATE OF PENETRATION 61.5 @ 9246 7.3 @ 9443 35.9 21.38110 FT/HR SURFACE TORQUE 4111 @ 9102 1968 @ 9059 2925.7 3363.24634 AMPS WEIGHT ON BIT 11 @ 9215 -1 @ 9468 4.6 6.47372 KLBS ROTARY RPM 93 @ 9236 64 @ 9400 82.4 86.16394 RPM PUMP PRESSURE 2405 @ 9359 1334 @ 9287 1985.9 2043.65491 PSI DRILLING MUD REPORT DEPTH 9442/9435 MW 10.3 VIS 40 PV 11 YP 19 FL 6.2 Gels 8/10/13 CL- 30000 FC 1 SOL 11 SD 0.25 OIL 1/88 MBL 6 pH 9.6@105 Ca+ 200 CCI MWD SUMMARY INTERVAL TO TOOLS GAS SUMMARY(units) HIGH LOW AVERAGE DITCH GAS 843 @ 9189 21 @ 9398 122.5 TRIP GAS CUTTING GAS @ @ WIPER GAS 1715 CHROMATOGRAPHY(ppm) SURVEY METHANE(C-1) 568693 @ 9130 4391 @ 9398 28541.6 CONNECTION GAS HIGH 303 ETHANE(C-2) 729 @ 9131 0 @ 9112 24.5 AVG 159 PROPANE(C-3) 433 @ 9131 0 @ 9163 12.7 CURRENT 40 BUTANE(C-4) 54 @ 9363 1 @ 9289 0.6 CURRENT BACKGROUND/AVG 20/50 PENTANE(C-5) @ @ HYDROCARBON SHOWS Gas:Numerous INTERVAL LITHOLOGY/REMARKS GAS DESCRIPTION 9060-9090;9125-9150;9180-9225;9265-9300;9330- Primarily coal shows. 9060-9090;9125-9150;9180-9225;9265-9300; Sand and coal with trace 9370;9405-9430 9330-9370;9405-9430 porosity. LITHOLOGY Tyonek:Interbedded tuffaceous claystone,tuffaceous siltstone,tuffaceous sandstone and coal with occasional thin ash/tuff intervals and cabonaceous shale stringers. PRESENT 50%tuffaceous siltstone,30%tuffaceous claystone,20%tuffaceous sandstone LITHOLOGY DAILY ACTIVITY PTSM.Drill 9058-9222'.Continue drilling 9222-9316'.Circulate.PJSM,pull out of hole from 9316-to 9145'.PTSM.Pull out of hole from SUMMARY 9145 to 8024'.PJSM,service rig.PJSM,run into hole with 4"drill pipe from 8024'-9316'.PJSM,drill 9316-9370'.PJSM,drill 9370-9884'. EPOCH PERSONNEL ON BOARD 4 DAILY COST 3730.00 REPORT BY Greg Hammond file://C:\DOCUMENTS AND SETTINGS\EPOCHADMIN\IVIY DOCUMENTS\IVIY WEL... 5/5/2011 Daily Report Page 1 of 1 Buccaneer Alaska Operations it Wildcat DAILY WELLSITE REPORT .,J Kenai Loop#1 CANIRIG REPORT FOR Larry McAllister;Bob Davis DATE May 05,2011 DEPTH 9719 PRESENT OPERATION Circulate Bld MW to 11 ppg TIME 2400 YESTERDAY 9484 24 HOUR FOOTAGE 235 CASING INFORMATION 7 5/8"@ 8024' DEPTH INCLINATION AZIMUTH VERTICAL DEPTH SURVEY DATA BIT INFORMATION INTERVAL CONDITION REASON NO. SIZE TYPE S/N JETS IN OUT FOOTAGE HOURS T/B/C PULLED 3 63/4" HCC-0D505X 7026407 5-11s 8050 still in 1669 52.8 DRILLING PARAMETERS HIGH LOW AVERAGE CURRENT AVG RATE OF PENETRATION 113.2 @ 9567 8.5 @ 9552 39.0 78.74532 FT/HR SURFACE TORQUE 3686 @ 9578 2144 @ 9501 2909.7 2775.99121 AMPS WEIGHT ON BIT 6 @ 9484 0 @ 9589 3.7 1.90286 KLBS ROTARY RPM 93 @ 9505 79 @ 9715 86.6 86.16394 RPM PUMP PRESSURE 2273 @ 9578 1750 @ 9592 2142.9 2158.57275 PSI DRILLING MUD REPORT DEPTH 9719/9711 MW 11.0 VIS 40 PV 14 YP 19 FL 6.6 Gels 9/11/13 CL- 29000 FC 1 SOL 12 SD 0.25 OIL 1/87 MBL 6 pH 9.4 Ca+ 200 CCI MWD SUMMARY INTERVAL TO TOOLS GAS SUMMARY(units) HIGH LOW AVERAGE DITCH GAS 2065 @ 9713 2 @ 9570 299.4 TRIP GAS CUTTING GAS @ @ WIPER GAS CHROMATOGRAPHY(ppm) SURVEY METHANE(C-1) 411386 @ 9713 412 @ 9570 59521.0 CONNECTION GAS HIGH 105 ETHANE(C-2) 716 @ 9707 0 @ 9556 79.7 AVG 55 PROPANE(C-3) 301 @ 9713 0 @ 9556 39.1 CURRENT 30 BUTANE(C-4) 123 @ 9698 8 @ 9692 4.7 CURRENT BACKGROUND/AVG 40circ PENTANE(C-5) @ @ HYDROCARBON Gas:9590-9650;9685-9719 SHOWS INTERVAL LITHOLOGY/REMARKS GAS DESCRIPTION 9590-9650;9685- 9590-9650=Coal trace porosity;9685-9719= 9590-9650=564;9685-9719= 9590-9650=Coal and sand,primarily coal;9685- 9719 good clean sand,good porosity 2065u drilling 3995u circulating 9719=sand and coal,primarily sand LITHOLOGY Tyonek:Interbedded tuffaceous claystone,tuffaceous siltstone,tuffaceous sandstone and coal with occasional thin ash/tuff intervals and PRESENT 100%Sand LITHOLOGY PTSM.Drill 6 3/4"hole from9484'to 9720'begin raising mud weight to 10.4.Circulate bottoms up,gas rose to 2050 units and dropped off to 100 DAILY units.Check for flow=positive flow.Close annular.Circulate well with 2 pumps at slow pump rate through gas buster.Build mud weight to 10.6 ACTIVITY ppg.Circulate out bubbles.PTSM.Continue circulating at slow pump rate through gas buster,build mud weight to 10.6 and circulate out SUMMARY bubbles.Circulate well with two pumps until 10.6 ppg mud all the way around.Circulate with 3 pumps through the gas buster.Build mud weight to 10.8 ppg.Monitor well.Circulate and weight up to 11 ppg mud weight. EPOCH PERSONNEL ON BOARD 4 DAILY COST 3830.00 REPORT BY John Lundy file://C:\DOCUMENTS AND SETTINGS\EPOCHADMIN\MY DOCUMENTS\MY WEL... 5/6/2011 Daily Report Page 1 of 1 Buccaneer Alaska Operations Wildcat DAILY WELLSITE REPORT 1 Kenai Loop#1 CANIRIG REPORT FOR Larry Driskill;Bob Davis DATE May 06,2011 DEPTH 10036 PRESENT OPERATION Drilling/Flow check at CN TIME 2400 YESTERDAY 9719 24 HOUR FOOTAGE 317 CASING INFORMATION 7 5/8"@ 8024' DEPTH INCLINATION AZIMUTH VERTICAL DEPTH SURVEY DATA BIT INFORMATION INTERVAL CONDITION REASON NO. SIZE TYPE S/N JETS IN OUT FOOTAGE HOURS T/B/C PULLED 3 6 3/4" HCC-0D505x 7026407 5-11s 8050 still in 1986 62.63 DRILLING PARAMETERS HIGH LOW AVERAGE CURRENT AVG RATE OF PENETRATION 108.0 @ 9721 5.0 @ 9889 39.6 15.37647 FT/HR SURFACE TORQUE 4023 @ 9914 1146 @ 10031 3143.5 2702.58447 AMPS WEIGHT ON BIT 10 @ 9979 1 @ 9988 4.3 3.85828 KLBS ROTARY RPM 86 @ 9720 29 @ 9785 78.0 79.02067 RPM PUMP PRESSURE 2802 @ 10032 2158 @ 9719 2492.9 2618.24365 PSI DRILLING MUD REPORT DEPTH 9973/9965 MW 11.4 VIS 40 PV 13 YP 19 FL 6 Gels 7/8/11 CL- 29500 FC 1 SOL 15 SD 0.25 OIL 1/84 MBL 7.5 pH 9.6 Ca+ 200 CCI MWD SUMMARY INTERVAL TO TOOLS GAS SUMMARY(units) HIGH LOW AVERAGE DITCH GAS 1287 @ 9719.00000 1 @ 10027.00000 140.6 TRIP GAS CUTTING GAS @ @ WIPER GAS 214u CHROMATOGRAPHY(ppm) SURVEY METHANE(C-1) 256190 @ 9719. 311 @ 10027 28556.5 CONNECTION GAS HIGH 30(sing)CG) ETHANE(C-2) 428 @ 9719 0 @ 10030 29.9 AVG tr PROPANE(C-3) 248 @ 9719 0 @ 10030 13.6 CURRENT 0 BUTANE(C-4) 43 @ 9881 0 @ 9932 2.4 CURRENT BACKGROUND/AVG 40/43 PENTANE(C-5) @ @ HYDROCARBON SHOWS GAS:9719-9730;9800-9820;9870-9885;9910-9930;9980-1005 INTERVAL LITHOLOGY/REMARKS GAS DESCRIPTION 9719-9730;9800-9820; 9719-9730 Cont.previous show;9800-9820 may be 9719-9730=2066u;9800-9820 9719-9730=sand;9800-9820=sand and 9870-9885;9910-9930; some porosity;9870-9885 coal;9910-9930 coal; =583u;9870-9885=299u; coal;9870-9885=coal;9910-9930=coal; 9980-1005 9980-1005 some porosity 9910-9930=640u;9980-1005=9980-1005=coal and sand 520u LITHOLOGY Tyonek:Interbedded tuffaceous claystone,tuffaceous siltstone,tuffaceous sandstone and coal with occasional thin ash/tuff intervals and carbonaceous shale stringers. PRESENT 60%Coal,10%Tuffaceous siltstone;20%carbonaceous shale,10%ash. LITHOLOGY PTSM.Continue circulate and weight op to 11.2 ppg MWE.Slow pump rate and monitor well.Circulate bottoms up.PJSM.Drill from 9720'to DAILY 9734'.Circulate bottoms up.Drill from 9737'to 9750'.Circulate bottoms up.Drill from 9750'to 9765'.Circulate bottoms up.Drill from 9765'to ACTIVITY 9782'.Circulate up samples.Make connection and circulate bottoms up.Drill from 9782'to 9835'.PTSM.Drill from 9835'to 9909'.PJSM. SUMMARY Circulate bottoms up and monitor well.PJSM.Pull out of the hole with 4"drill pipe from 9909'to 9341'short trip.PJSM.Run into hole with 4"drill pipe from 9341'to 9909',(25'fill).PJSM.Circulate bottoms up.PJSM.Drill from 9909'to 10036'. EPOCH PERSONNEL ON BOARD 4 DAILY COST 3830.00 REPORT BY John Lundy file://C:\DOCUMENTS AND SETTINGS\EPOCHADMIN\MY DOCUMENTS\MY WEL... 5/7/2011 Daily Report Page 1 of 1 Buccaneer Alaska Operations DAILY WELLSITE REPORT Kenai Loop#1 CANRIG REPORT FOR Larry Driskill;Bob Davis DATE May 07,2011 DEPTH 10459 PRESENT OPERATION Drilling TIME 2400 YESTERDAY 10036 24 HOUR FOOTAGE 423 CASING INFORMATION 7 5/8 @ 8024' DEPTH INCLINATION AZIMUTH VERTICAL DEPTH SURVEY DATA BIT INFORMATION INTERVAL CONDITION REASON NO. SIZE TYPE S/N JETS IN OUT FOOTAGE HOURS T/B/C PULLED 3 6 3/4" HCC-OD505X 7026407 5-11s 8050 still in 2409' 80.01 DRILLING PARAMETERS HIGH LOW AVERAGE CURRENT AVG RATE OF PENETRATION 109.9 @ 10232 4.7 @ 10397 32.5 11.89564 FT/HR SURFACE TORQUE 4581 @ 10303 2599 @ 10119 3324.5 3128.34448 AMPS WEIGHT ON BIT 11 @ 10162 0 @ 10374 4.9 4.90286 KLBS ROTARY RPM 86 @ 10046 64 @ 10310 80.1 79.02067 RPM PUMP PRESSURE 2865 @ 10359 2070 @ 10099 2591.7 2520.56348 PSI DRILLING MUD REPORT DEPTH 10423/10411 MW 11.4 VIS 40 PV 15 YP 21 FL 5.8 Gels 8/9/13 CL- 30000 FC 1 SOL 15 SD 0.25 OIL 1/84 MBL 8.5 pH 9.8 Ca+ 200 CCI MWD SUMMARY INTERVAL TO TOOLS GAS SUMMARY(units) HIGH LOW AVERAGE DITCH GAS 665 @ 10232 23 @ 10202 97.8 TRIP GAS CUTTING GAS @ @ WIPER GAS CHROMATOGRAPHY(ppm) SURVEY METHANE(C-1) 132465 @ 10232 4330 @ 10449 19152.2 CONNECTION GAS HIGH 64 ETHANE(C-2) 264 @ 10181 0 @ 10071 18.2 AVG 13 PROPANE(C-3) 165 @ 10179 0 @ 10071 10.8 CURRENT 0 BUTANE(C-4) 63 @ 10419 0 @ 10436 1.7 CURRENT BACKGROUND/AVG 45/40 PENTANE(C-5) @ @ HYDROCARBON SHOWS Gas:10085-10115;10130-10150;10175-10195;10230-10275;10395-10425 INTERVAL LITHOLOGY/REMARKS GAS DESCRIPTION 10085-10115;10130-10150; 10085-10115 coal;10130-10150 possible 10085-10115=295u;10130-10150 10085-10115=coal;10130-10150= 10175-10195;10230-10275; porosity;10175-10195 coal;10230-10275 coal; =95u;10175-10195=627u; sand;10175-10195=coal;10230-10275 10395-10425 10395-10425 coal 10230-10275=670u;10395-10425 =coal;10395-10425=coal =328u LITHOLOGY Tyonek:Interbedded tuffaceous siltstone,tuffaceous sandstone,and coal with occasional tuff intervals and carbonaceous shale stringers. PRESENT 50%tuffaceous siltstone,20%tuffaceous sandstone,20%tuff,10%coal LITHOLOGY DAILY ACTIVITY PTSM.Drill from 10,036'to 10,145'.Continue drilling from 10,145'to 10,195'Circulate,bottoms up,monitor.Continue drilling 10,195'to SUMMARY 10,235.Circulate,bottoms up,monitor.PTSM.Drill from 10,235'to 10,380'.Continue drilling from 10,380'to 10,459'. EPOCH PERSONNEL ON BOARD 4 DAILY COST 3630.00 REPORT BY Greg Hammond file://C:\DOCUMENTS AND SETTINGS\EPOCHADMIN\MY DOCUMENTS\MY WEL... 5/8/2011 Daily Report Page 1 of 1 Buccaneer Alaska Operations Wildcat DAILY WELLSITE REPORT Kenai Loop#1 CANIRIG REPORT FOR Larry Driskill;Bob Davis DATE May 08,2011 DEPTH 10680 PRESENT OPERATION Tour Change at shoe TIME 2400 YESTERDAY 10459 24 HOUR FOOTAGE 221 CASING INFORMATION 7 75/8"@ 8024' DEPTH INCLINATION AZIMUTH VERTICAL DEPTH SURVEY DATA BIT INFORMATION INTERVAL CONDITION REASON NO. SIZE TYPE S/N JETS IN OUT FOOTAGE HOURS T/B/C PULLED 3 63/4" HCC-0D505X 7026407 5-11s 8050 10680 2630 74.37 TD DRILLING PARAMETERS HIGH LOW AVERAGE CURRENT AVG RATE OF PENETRATION 61.9 @ 10667 4.8 @ 10636 18.8 17.09369 FT/HR SURFACE TORQUE 3950 @ 10537 2643 @ 10511 3243.7 2790.67261 AMPS WEIGHT ON BIT 14 @ 10646 0 @ 10542 6.7 10.42115 KLBS ROTARY RPM 86 @ 10482 36 @ 10511 80.1 79.02067 RPM PUMP PRESSURE 2884 @ 10535 1982 @ 10607 2636.6 2625.90479 PSI DRILLING MUD REPORT DEPTH 10680/10667 MW 11.4 VIS 39 PV 15 YP 20 FL 4.8 Gels 7/9/12 CL- 33000 FC 1 SOL 15 SD 0.25 OIL 1/84 MBL 8 pH 9.8 Ca+ 200 CCI MWD SUMMARY INTERVAL TO TOOLS GAS SUMMARY(units) HIGH LOW AVERAGE DITCH GAS 345 @ 10493 21 @ 10569.00000 66.7 TRIP GAS CUTTING GAS @ @ WIPER GAS CHROMATOGRAPHY(ppm) SURVEY METHANE(C-1) 51326 @ 10671 366 @ 10481 11652.7 CONNECTION GAS HIGH none ETHANE(C-2) 421 @ 10494 4 @ 10476 15.6 AVG PROPANE(C-3) 266 @ 10494 3 @ 10476 8.5 CURRENT BUTANE(C-4) 82 @ 10494 2 @ 10498 1.4 CURRENT BACKGROUND/AVG 50/45 PENTANE(C-5) @ @ HYDROCARBON Gas;10490-10560;10655-10680 SHOWS INTERVAL LITHOLOGY/REMARKS GAS DESCRIPTION 10490-10560;10655- 10490-10560=some porosity zones,good gas level for this mudweight; 10490-10560=345u; 10490-10560 sand and coal; 10680 10655-10680=trace porosity,good gas level for this mudweight 10655-10680=259u 10655-10680=coal and sand LITHOLOGY Tyonek;Interbedded tuffaceous claystone,tuffaceous siltstone,tuffaceous sandstone and coal with occasional thin ash/tuff intervals and carbonaceous shale stringers PRESENT 10%Ash,10%Conglomerate,90%Tuffaceous sandstone LITHOLOGY DAILY ACTIVITY PTSM.Drill from 10459'to 10560'.Flow check and circulate.Drill from 10560'to 10603'.PTSM.Drill from 10603'to 10680'=TD. SUMMARY Circulate.Pump sweep.Circulate and condition mud.PJSM.Pull out of the hole from 106880'to shoe at 8050' EPOCH PERSONNEL ON BOARD 4 DAILY COST 3630.00 REPORT BY John Lundy file://C:\DOCUMENTS AND SETTINGS\EPOCHADMIN\IVIY DOCUMENTS\MY WEL... 5/9/2011 Daily Report Page 1 of 1 Buccaneer Alaska Operations Wildcat DAILY WELLSITE REPORT Cek Kenai Loop#1 NRIG REPORT FOR Larry Driskill;Less Benjamin DATE May 09,2011 DEPTH 10680 PRESENT OPERATION Testing BOPS TIME 2400 YESTERDAY 10680 24 HOUR FOOTAGE 0 CASING INFORMATION 7 5/8"@ 8024' DEPTH INCLINATION AZIMUTH VERTICAL DEPTH SURVEY DATA BIT INFORMATION INTERVAL CONDITION REASON NO. SIZE TYPE S/N JETS IN OUT FOOTAGE HOURS T/B/C PULLED 3 6 3/4" HCC-0D505X 7026407 5-11s 8050 103680 2630 94.37 TD DRILLING PARAMETERS HIGH LOW AVERAGE CURRENT AVG RATE OF PENETRATION @ @ FT/HR SURFACE TORQUE @ @ AMPS WEIGHT ON BIT @ @ KLBS ROTARY RPM @ @ RPM PUMP PRESSURE @ @ PSI DRILLING MUD REPORT DEPTH 10680/10667 MW 11.4 VIS 39 PV 16 YP 19 FL 4.6 Gels 7/9/11 CL- 33000 FC 1 SOL 15 SD 0.1 OIL 1/84 MBL 8 pH 9.8 Ca+ 200 CCI MWD SUMMARY INTERVAL TO TOOLS GAS SUMMARY(units) HIGH LOW AVERAGE DITCH GAS @ @ TRIP GAS CUTTING GAS @ @ WIPER GAS 230u Note Peak missed due to QGM failure CHROMATOGRAPHY(ppm) SURVEY METHANE(C-1) @ @ CONNECTION GAS HIGH ETHANE(C-2) @ @ AVG PROPANE(C-3) @ @ CURRENT BUTANE(C-4) @ @ CURRENT BACKGROUND/AVG 44/42 PENTANE(C-5) @ @ HYDROCARBON SHOWS N/A INTERVAL LITHOLOGY/REMARKS GAS DESCRIPTION LITHOLOGY Tyonek:Interbedded tuffaceous siltstone,tuffaceous sandstone,and coal with occasional tuff intervals and carbonaceous shale stringers. PRESENT 10%Ash;10%Conglomerate;80%Tuffaceous sandstone. LITHOLOGY PTSM.Lube and service top drive,carrier,crown and blocks.PJSM.Slip 33'drilling line.PJSM.Run into hole from 8050'to 10625'.Wash to DAILY 10680',4'fill.Work and wash through bridges at 9910'and 10236'.Circulate bottoms up.Pump high vis sweep.Check for flow.Pull out of the ACTIVITY hole from 10680'to 9848',tight at 10310'.Run into hole from 9848'to 10680'reaming through 10310',3'fill.Pump high vis sweep,spot pill(hi-vis SUMMARY 11.5 ppg,15ppb black).PTSM.Continue pumping pill and chase.PJSM.Pull out of the hole with 4"drill pipe from10680'to 2400'.PJSM. Continue pulling out of the hole from 2400'to 13'..PJSM.Rig down MWD sensators,cables and encoder.Clean rig floor.PJSM.Rig up BOP test equipment.Test annular,VTD valve,Dart valve,check valve,lower TP Valve,valves 8,7,9,and outside kill valve EPOCH PERSONNEL ON BOARD 3 DAILY COST 3630.00 REPORT BY JOHN LUNDY file://C:\DOCUMENTS AND SETTINGS\EPOCHADMINWIY DOCUMENTS\IVIY WE... 5/10/2011 Daily Report Page 1 of 1 Buccaneer Alaska Operations Wildcat DAILY WELLSITE REPORT CAN Kenai Loop#1 RAG REPORT FOR Larry Driskill;Less Benjamin DATE May 10,2011 DEPTH 10680 PRESENT OPERATION Circulating TIME 2400 YESTERDAY 10680 24 HOUR FOOTAGE 0 CASING INFORMATION 7 5/8"@ 8024' DEPTH INCLINATION AZIMUTH VERTICAL DEPTH SURVEY DATA BIT INFORMATION INTERVAL CONDITION REASON NO. SIZE TYPE S/N JETS IN OUT FOOTAGE HOURS T/B/C PULLED 3 6 3/4" HCC-0D505X 7026407 5-11s 8050 103680 2630 94.37 4-7-CT--A-X-1-BT-TD TD DRILLING PARAMETERS HIGH LOW AVERAGE CURRENT AVG RATE OF PENETRATION @ @ FT/HR SURFACE TORQUE @ @ AMPS WEIGHT ON BIT @ @ KLBS ROTARY RPM @ @ RPM PUMP PRESSURE @ @ PSI DRILLING MUD REPORT DEPTH 10680/10667 MW 11.4 VIS 42 PV 16 YP 23 FL 4.6 Gels 8/9/11 CL- 32500 FC 1 SOL 15 SD 0.1 OIL 1/84 MBL 8 pH 9.8 Ca+ 200 CCI MWD SUMMARY INTERVAL TO TOOLS GAS SUMMARY(units) HIGH LOW AVERAGE DITCH GAS @ @ TRIP GAS CUTTING GAS @ @ WIPER GAS 140u CHROMATOGRAPHY(ppm) SURVEY METHANE(C-1) @ @ CONNECTION GAS HIGH ETHANE(C-2) @ @ AVG PROPANE(C-3) @ @ CURRENT BUTANE(C-4) @ @ CURRENT BACKGROUND/AVG 3/13 PENTANE(C-5) @ @ HYDROCARBON SHOWS N/A INTERVAL LITHOLOGY/REMARKS GAS DESCRIPTION LITHOLOGY Tyonek:Interbedded tuffaceous siltstone,tuffaceous sandstone,and coal with occasional tuff intervals and carbonaceous shale stringers. PRESENT 10%Ash;10%Conglomerate;80%Tuffaceous sandstone. LITHOLOGY PTSM.Continue testing BOPE.Test 250/4000 psi:inside kill,HCR,Manual choke,Lower pipe rams,blind rams,CMVs,2„3,k4,5 and 7.Koomey DAILY performance test.Test gas alarms,PVTs and flow alarm.Rig down test equipment,Install wear ring.PJSM.Rig up wireline and log from 8024 to ACTIVITY 9421'.Rig down wireline.Inspect torque tube turn buckle pad eyes.Change out 1502 cap.PJSM.Make up BHA and run into hole to 1816'. SUMMARY PTSM.Run into hole from 1816'to 8000'.PJSM.Service the top drive and carrier.Circulate bottoms up.PJSM.Continue running into hole with 4”drill pipe from 8000'to 10680'.Fill pipe.Tag 4'fill.PJSM.Circulate bottoms up.Pump sweep XZ,high gas 140u. EPOCH PERSONNEL ON BOARD 3 DAILY COST 4340.00 REPORT BY John Lundy file://C:\DOCUMENTS AND SETTINGS\EPOCHADMIN\MY DOCUMENTS\MY WE... 5/11/2011 Daily Report Page 1 of 1 Buccaneer Alaska Operations Wildcat DAILY WELLSITE REPORTCiusiR/ Kenai Loop#1 IG REPORT FOR Larry Driskill;Less Benjamin DATE May 11,2011 DEPTH 10680 PRESENT OPERATION Run in w/wireline TIME 2400 YESTERDAY 10680 24 HOUR FOOTAGE 0 CASING INFORMATION 7 5/8"@ 8024' SURVEY DATA DEPTH INCLINATION AZIMUTH VERTICAL DEPTH BIT INFORMATION INTERVAL CONDITION REASON NO. SIZE TYPE S/N JETS IN OUT FOOTAGE HOURS T/B/C PULLED DRILLING PARAMETERS HIGH LOW AVERAGE CURRENT AVG RATE OF PENETRATION @ @ FT/HR SURFACE TORQUE @ @ AMPS WEIGHT ON BIT @ @ KLBS ROTARY RPM @ @ RPM PUMP PRESSURE @ @ PSI DRILLING MUD REPORT DEPTH 10680/10667 MW 11.7 VIS 45 PV 16 YP 24 FL 4.8 Gels 8/10/11 CL- 32000 FC 1 SOL 16 SD 0.2 OIL 1/83 MBL 8 pH 9.7 Ca+ 200 CCI MWD SUMMARY INTERVAL TO TOOLS GAS SUMMARY(units) HIGH LOW AVERAGE DITCH GAS @ @ TRIP GAS CUTTING GAS @ @ WIPER GAS 42u WG/60u Sweep CHROMATOGRAPHY(ppm) SURVEY METHANE(C-1) @ @ CONNECTION GAS HIGH ETHANE(C-2) @ @ AVG PROPANE(C-3) @ @ CURRENT BUTANE(C-4) @ @ CURRENT BACKGROUND/AVG 0/4 PENTANE(C-5) @ @ HYDROCARBON SHOWS N/A INTERVAL LITHOLOGY/REMARKS GAS DESCRIPTION LITHOLOGY Tyonek:Interbedded tuffaceous siltstone,tuffaceous sandstone,and coal with occasional tuff intervals and carbonaceous shale stringers. PRESENT 10%Ash;10%Conglomerate;80%Tuffaceous sandstone. LITHOLOGY PTSM.Circulate.Pull out of the hole from 10680'to10644'and circulate bottoms up.Circulate hole clean.PJSM.Check for flow.Pull out of the hole from 10644'to 8000'.Tight at 10480',10444',10316',10078'and 10005'.Run into hole from 8000'to 10646'.Wash to 10680'(2 fill)tight DAILY 1000 strokes'.Pump sweep and chase with 2000 strokes.Pull out of the hole from 10680 to 10644'.Pump second 20 bbl sweep.Check for flow. ACTIVITY Weight up too 11.7 ppg/mwe.PTSM.Circulate sweep.Continue circulation.Pump dry job.PJSM.Pull out of the hole with 4"drill pipe from SUMMARY 10644'to 6240'.PJSM.Repair top drive compensator cylinder.PJSM.Continue pulling out of the hole from 6240'too bit.PJSM with wireline operators.Rig up for wireline operations.Make up wireline tools.Check for flow(good).PJSM.Run into hole with wire line operation.Monitor well. EPOCH PERSONNEL ON BOARD 3 DAILY COST 4340.00 REPORT BY John Lundy file://C:\Documents and Settings\EpochAdmin\My Documents\My Wells\Buccaneer\2011... 5/12/2011 Daily Report Page 1 of 1 Buccaneer Alaska Operations Wildcat DAILY WELLSITE REPORT Kenai Loop#1 CANRIG REPORT FOR Larry Driskill;Less Benjamin DATE May 12,2011 DEPTH 10680 PRESENT OPERATION M/U Wireline TIME 2400 YESTERDAY 10680 24 HOUR FOOTAGE 0 CASING INFORMATION 7 5/8"@ 8024' SURVEY DATA DEPTH INCLINATION AZIMUTH VERTICAL DEPTH BIT INFORMATION INTERVAL CONDITION REASON NO. SIZE TYPE S/N JETS IN OUT FOOTAGE HOURS T/B/C PULLED Mill 6 3/4" Baker 5 blade concave,2.62 1333A open 10680 10680 0 2.75 Not Graded-"Good" TD DRILLING PARAMETERS HIGH LOW AVERAGE CURRENT AVG RATE OF PENETRATION @ @ FT/HR SURFACE TORQUE @ @ AMPS WEIGHT ON BIT @ @ KLBS ROTARY RPM @ @ RPM PUMP PRESSURE @ @ PSI DRILLING MUD REPORT DEPTH 10680/10667 MW 11.9 VIS 45 PV 15 YP 28 FL 5 Gels 8/11/13 CL- 31500 FC 1 SOL 16 SD 0.25 OIL 1/83 MBL 8 pH 9.8 Ca+ 200 CCI MWD SUMMARY INTERVAL TO TOOLS GAS SUMMARY(units) HIGH LOW AVERAGE DITCH GAS @ @ TRIP GAS 69u CUTTING GAS @ @ WIPER GAS CHROMATOGRAPHY(ppm) SURVEY METHANE(C-1) @ @ CONNECTION GAS HIGH ETHANE(C-2) @ @ AVG PROPANE(C-3) @ @ CURRENT BUTANE(C-4) @ @ CURRENT BACKGROUND/AVG 0/5 PENTANE(C-5) @ @ HYDROCARBON SHOWS N/A INTERVAL LITHOLOGY/REMARKS GAS DESCRIPTION LITHOLOGY Tyonek:Interbedded tuffaceous siltstone,tuffaceous sandstone,and coal with occasional tuff intervals and carbonaceous shale stringers. PRESENT 10%Ash;10%Conglomerate;80%Tuffaceous sandstone. LITHOLOGY PTSM.Continue running into hole to 10674'.Log up from 10674'to 8000'.Pull out of the hole with wireline,rig down and lay out,caliper missing DAILY one of 6 arms.PJSM.Lube and service top drive carrier,crown and blocks.PJSM.Drain and inspect stack for missing caliper arm.Pick up and ACTIVITY make up mill and BHA.Run into hole to 744'.PJSM.Run into hole with 4"drill pipe to 8084'.Wash and ream through 8084',8145",8360'and SUMMARY 8443'to 8450'.PTSM.Run into hole with 4"drill pipe from 8460'to 10680'.Tag up-2'fill.PJSM.Mix and pump sweeps-20 bbls.Pump sweep. Circulate bottoms up,Mix and pump dry job.Stand back 1 stand back to 10620'.PJSM.Pull out of the hole with 4"drill pipe from 10620'to surface. EPOCH PERSONNEL ON BOARD 3 DAILY COST 4490.00 REPORT BY John Lundy file://C:\DOCUMENTS AND SETTINGS\EPOCHADMIN\MY DOCUMENTS\MY WE... 5/13/2011 Daily Report Page 1 of 1 Buccaneer Alaska Operations Wildcat DAILY WELLSITE REPORT ,f CANGKenai Loop#1 R' REPORT FOR Larry Driskill;Less Benjamin DATE May 13,2011 DEPTH 10680 PRESENT OPERATION POOH For wireline TIME 2400 YESTERDAY 10680 24 HOUR FOOTAGE 0 CASING INFORMATION 7 5/8"@ 8024' DEPTH INCLINATION AZIMUTH VERTICAL DEPTH SURVEY DATA BIT INFORMATION INTERVAL CONDITION REASON NO. SIZE TYPE S/N JETS IN OUT FOOTAGE HOURS T/B/C PULLED 5RR3 6 3/4" HCC-0D505X 7026407 5-11s 10680 10680 0 0 Not Graded TD DRILLING PARAMETERS HIGH LOW AVERAGE CURRENT AVG RATE OF PENETRATION @ @ FT/HR SURFACE TORQUE @ @ AMPS WEIGHT ON BIT @ @ KLBS ROTARY RPM @ @ RPM PUMP PRESSURE @ @ PSI DRILLING MUD REPORT DEPTH 10680/10667 MW 11.9 VIS 46 PV 16 YP 28 FL 4.8 Gels 9/12/14 CL- 31000 FC 1 SOL 16 SD 0.1 OIL 1/83 MBL 8 pH 9.8 Ca+ 200 CCI MWD SUMMARY INTERVAL TO TOOLS GAS SUMMARY(units) HIGH LOW AVERAGE DITCH GAS @ @ TRIP GAS 115u CUTTING GAS @ @ WIPER GAS CHROMATOGRAPHY(ppm) SURVEY METHANE(C-1) @ @ CONNECTION GAS HIGH ETHANE(C-2) @ @ AVG PROPANE(C-3) @ @ CURRENT BUTANE(C-4) @ @ CURRENT BACKGROUND/AVG 0/5 PENTANE(C-5) @ @ HYDROCARBON SHOWS N/A INTERVAL LITHOLOGY/REMARKS GAS DESCRIPTION LITHOLOGY Tyonek:Interbedded tuffaceous siltstone,tuffaceous sandstone,and coal with occasional tuff intervals and carbonaceous shale stringers. PRESENT 10%Ash;10%Conglomerate;80%Tuffaceous sandstone. LITHOLOGY PTSM.PJSM with wireline.Rig up density and neutron.Run into hole and attempt to pass 9481'failed.Pull out of the hole with wireline.Re- configure tool assembly.Run into hole.Log from 9400'to 3000'.Rig down and lay out tools.PJSM.Make up BHA.Run into hole to 743'.Run into DAILY hole with 4"drill pipe from 743'to 6100'.PTSM.Run into hole with 4"drill pipe from 6100'to 8000'.PJSM.Slip and cut drilling line.Continue ACTIVITY running into the hole with 4"drill pipe from 8000'to 9414'.Ream from 9414'to 9448'.Run into hole from 9448'to 10520'.Ream from 10520'to SUMMARY 10580'.Run into hole from 10580'to 10678',2'fill.Stand back 1 stand.PJSM.Circulate and pump sweep(2X).Check for flow and monitor well. PJSM.Pull out of the hole from 10612'to 9500'with 4"drill pipe.PJSM.Pump slick pill(55bbls)at 9500'spot.Continue pulling out of the hole with 4"drill pipe from 9500'to 8000'.PJSM.Pump dry job.Install stripping rubbers and air slips.Continue pulling out of the hole to 7300'with 4" drill pipe. EPOCH PERSONNEL ON BOARD 3 DAILY COST 4415.00 REPORT BY John Lundy fila•//C`•\TVICTTMPMTC ANTI CPTTTNC:C\1 PCnC14ATIMTN\MV TICnCTTMPNTC\MV WP 5/1d/1f111 Daily Report Page 1 of 1 Buccaneer Alaska Operations Wildcat DAILY WELLSITE REPORT Kenai Loop#1 CANRIG REPORT FOR Larry Driskill;Less Benjamin DATE May 14,2011 DEPTH 10680 PRESENT OPERATION UD BHA#8 TIME 2400 YESTERDAY 10680 24 HOUR FOOTAGE 0 CASING INFORMATION 7 5/8"@ 8024' DEPTH INCLINATION AZIMUTH VERTICAL DEPTH SURVEY DATA BIT INFORMATION INTERVAL CONDITION REASON NO. SIZE TYPE S/N JETS IN OUT FOOTAGE HOURS T/B/C PULLED N/A DRILLING PARAMETERS HIGH LOW AVERAGE CURRENT AVG RATE OF PENETRATION @ @ FT/HR SURFACE TORQUE @ @ AMPS WEIGHT ON BIT @ @ KLBS ROTARY RPM @ @ RPM PUMP PRESSURE @ @ PSI DRILLING MUD REPORT DEPTH 10680/10667 MW 11.9 VIS 46 PV 16 YP 27 FL 5 Gels 9/11/13 CL- 30000 FC 1 SOL 16 SD TR OIL 3/81 MBL 8 pH 9.8 Ca+ 200 CCI MWD SUMMARY INTERVAL TO TOOLS GAS SUMMARY(units) HIGH LOW AVERAGE DITCH GAS @ @ TRIP GAS 78u CUTTING GAS @ @ WIPER GAS CHROMATOGRAPHY(ppm) SURVEY METHANE(C-1) @ @ CONNECTION GAS HIGH ETHANE(C-2) @ @ AVG PROPANE(C-3) @ @ CURRENT BUTANE(C-4) @ @ CURRENT BACKGROUND/AVG 0/5 PENTANE(C-5) @ @ HYDROCARBON SHOWS N/A INTERVAL LITHOLOGY/REMARKS GAS DESCRIPTION LITHOLOGY Tyonek:Interbedded tuffaceous siltstone,tuffaceous sandstone,and coal with occasional tuff intervals and carbonaceous shale stringers. PRESENT 10%Ash;10%Conglomerate;80%Tuffaceous sandstone. LITHOLOGY PTSM.Continue pulling out of the hole from 7300'to 743'.PJSM.Pull out of the hole with BHA from 743'to surface.PJS>Rig up density and neutron tools.Run into hole with wireline to 9516'.Unable to pass 9516'.PJS>.Run into hole with BHA#8 to 743'.Continue running into hole DAILY with 4"drill pipe from 743'to 7994'.PJSM.Lube and service top drive,carrier,crown and blocks.Run into hole from 7994'to 9951'reaming ACTIVITY through 9887'.PTSM.Run into hole with 4"drill pipe from 9951'to 10678'.Tag 2'fill.Stand one stand back,flow check and monitor well at SUMMARY 10646'.PJSM.Circulate 3000 strokes.Pump 25 bbl sweep and chase with 8000 strokes.Pump second sweep.PJSM.Spot 7%lubricant pill. PJSM.Pull out of the hole from 10646'to 8000'.Monitor well(static).PJSM.Pump dry job.Prep floor.Continue pulling out of the hole from 8000' to 731'with 4"drill pipe.PJSM.Lay down 4"HWDP from 743'to bit.Lay down LSDP,cross over and stabilizers. EPOCH PERSONNEL ON BOARD 3 DAILY COST 4265.00 REPORT BY John Lundy file://C:\DOCUMENTS AND SETTINGS\EPOCHADMIN\MY DOCUMENTS\MY WE... 5/15/2011 Daily Report Page 1 of 1 Buccaneer Alaska Operations Wildcat DAILY WELLSITE REPORT Kenai Loop#1 CANRIG REPORT FOR Larry McAllister;Bob Davis DATE May 15,2011 DEPTH 10680 PRESENT OPERATION Displace TIME 2400 YESTERDAY 10680 24 HOUR FOOTAGE 0 CASING INFORMATION 7 5/8"@ 8024'4 1/2"@ 10678' DEPTH INCLINATION AZIMUTH VERTICAL DEPTH SURVEY DATA BIT INFORMATION INTERVAL CONDITION REASON NO. SIZE TYPE S/N JETS IN OUT FOOTAGE HOURS T/B/C PULLED N/A DRILLING PARAMETERS HIGH LOW AVERAGE CURRENT AVG RATE OF PENETRATION @ @ FT/HR SURFACE TORQUE @ @ AMPS WEIGHT ON BIT @ @ KLBS ROTARY RPM @ @ RPM PUMP PRESSURE @ @ PSI DRILLING MUD REPORT DEPTH 10680/10667 MW 11.9 VIS 44 PV 16 YP 25 FL 4.6 Gels 9/12/13 CL- 29500 FC 1 SOL 16 SD TR OIL 3/81 MBL 8 pH 10.0 Ca+ 200 CCI MWD SUMMARY INTERVAL TO TOOLS GAS SUMMARY(units) HIGH LOW AVERAGE DITCH GAS @ @ TRIP GAS 90u CUTTING GAS @ @ WIPER GAS CHROMATOGRAPHY(ppm) SURVEY METHANE(C-1) @ @ CONNECTION GAS HIGH ETHANE(C-2) @ @ AVG PROPANE(C-3) @ @ CURRENT BUTANE(C-4) @ @ CURRENT BACKGROUND/AVG 5/20 PENTANE(C-5) @ @ HYDROCARBON SHOWS N/A INTERVAL LITHOLOGY/REMARKS GAS DESCRIPTION LITHOLOGY Tyonek:Interbedded tuffaceous siltstone,tuffaceous sandstone,and coal with occasional tuff intervals and carbonaceous shale stringers. PRESENT 10%Ash;10%Conglomerate;80%Tuffaceous sandstone. LITHOLOGY PTSM.Pull wear bushing.PJSM.Rig up and test variable rams on 4.5".PJSM.Install wear ring.Change out bales and elevators.Rig up fill-up DAILY line.Stage centralizers.PJSM.Rig up Weatherford.Run into hole.Check floats.Continue running into hole to 2729'.Change out bales and ACTIVITY elevators.Pick up/make up hanger assembly.Run into hole from 2729'to 2790'.PTSM.Run into hole from2790'to 7700'.PJSM.Circulate drill SUMMARY string volume 3250 strokes.PJSM.Continue running into hole from 7700'to 10678'.Tag bottom.Stand back 1 stand.Make up 5'PUP joint. PJSM.Circulate and condition.PJSM.Rig up cement head and 10'PUP joint.Make up wash down line and cement line.PJSM with BJ,all hands.Pump 3 bbls H2O.Pressure test lines.Pump 40 bbls seal bond sweep.Pump cement per plan. EPOCH PERSONNEL ON BOARD 3 DAILY COST 4265.00 REPORT BY John Lundy file://C:\DOCUMENTS AND SETTINGS\EPOCHADMIN\MY DOCUMENTS\MY WE... 5/16/2011 Daily Report Page 1 of 1 Buccaneer Alaska Operations Wldcat DAILY WELLSITE REPORT '� Kenai Loop#1 CANIRIG REPORT FOR Larry McAllister;Bob Davis DATE May 16,2011 DEPTH 10680 PRESENT OPERATION W/O BOPS TIME 2400 YESTERDAY 10680 24 HOUR FOOTAGE 0 CASING INFORMATION 7 5/8"@ 8024'4 1/2"@ 10678'/hanger at 7891' DEPTH INCLINATION AZIMUTH VERTICAL DEPTH SURVEY DATA BIT INFORMATION INTERVAL CONDITION REASON NO. SIZE TYPE S/N JETS IN OUT FOOTAGE HOURS T/B/C PULLED N/A DRILLING PARAMETERS HIGH LOW AVERAGE CURRENT AVG RATE OF PENETRATION @ @ FT/HR SURFACE TORQUE @ @ AMPS WEIGHT ON BIT @ @ KLBS ROTARY RPM @ @ RPM PUMP PRESSURE @ @ PSI DRILLING MUD REPORT DEPTH 10680/10667 MW 11.9 VIS 45 PV 17 YP 23 FL 4.8 Gels 9/12/14 CL- 29000 FC 1 SOL 18 SD TR OIL 3/81 MBL 8 pH 10.0 Ca+ 200 CCI MWD SUMMARY INTERVAL TO TOOLS GAS SUMMARY(units) HIGH LOW AVERAGE DITCH GAS @ @ TRIP GAS CUTTING GAS @ @ WIPER GAS CHROMATOGRAPHY(ppm) SURVEY METHANE(C-1) @ @ CONNECTION GAS HIGH ETHANE(C-2) @ @ AVG PROPANE(C-3) @ @ CURRENT BUTANE(C-4) @ @ CURRENT BACKGROUND/AVG 0/2 PENTANE(C-5) @ @ HYDROCARBON SHOWS N/A INTERVAL LITHOLOGY/REMARKS GAS DESCRIPTION LITHOLOGY N/A PRESENT LITHOLOGY PTSM.Continue cementing 4.5"liner.Displace and bump plug.Check floats(OK).CIP @ 00:40 hrs.Set liner hanger with 4000 psi.Release from liner and circulate cement out of the hole.PJSM. DAILY Pull out of the hole with 4.5"drill pipe from 7884'to BHA>PJSM and lay down BHA.Lay down floor tools and subs.Change out tongs and elevators.Adjust counter weights for tongs.Rig down ACTIVITY cement head.Prep floor for 2 7/8".PTSM.Continue rig up for 2 7/8"drill pipe.PJSM.Pick up,drift,make up and stand back 43 stands of 2 7/8"drill pipe.PJSM.Pull wear bushing.PJSM.Change SUMMARY out C.P.R.s from 4"to 2 7/8".PJSM.Rig up to test BOPS.Annular to 250/2500 psi(good).Rams and valves 250/2500 psi(good).Koomey performance test.Test gas alarms,PVTs and Flow meter. EPOCH PERSONNEL ON BOARD 3 DAILY COST 2965.00 REPORT BY John Lundy file://C:\Users\Jim Carson\Documents\My Wells\BUCCANEER\KENAI LOOP#1\DAIL... 6/13/2011 Daily Report Page 1 of 1 Buccaneer Alaska Operations Wildcat DAILY WELLSITE REPORT Kenai Loop#1 CAINR'G REPORT FOR Larry McAllister;Bob Davis DATE May 17,2011 DEPTH 10678 PRESENT OPERATION Circulating Well TIME 2400 YESTERDAY 10680 24 HOUR FOOTAGE 0 CASING INFORMATION 7 5/8"@ 8024' 4 1/2"@ 10678'/hanger at 7891' DEPTH INCLINATION AZIMUTH VERTICAL DEPTH SURVEY DATA BIT INFORMATION INTERVAL CONDITION REASON NO. SIZE TYPE S/N JETS IN OUT FOOTAGE HOURS T/B/C PULLED N/A DRILLING PARAMETERS HIGH LOW AVERAGE CURRENT AVG RATE OF PENETRATION @ @ FT/HR SURFACE TORQUE @ @ AMPS WEIGHT ON BIT @ @ KLBS ROTARY RPM C@ @ RPM PUMP PRESSURE @ @ PSI DRILLING MUD REPORT DEPTH 10680/10667 MW 11.9 VIS 46 PV 18 YP 22 FL 4.8 Gels 9/12/13 CL- 29000 FC 1 SOL 16 SD TR OIL 3/81 MBL 8 pH 9.8 Ca+ 200 CCI MWD SUMMARY INTERVAL TO TOOLS GAS SUMMARY(units) HIGH LOW AVERAGE DITCH GAS @ @ TRIP GAS CUTTING GAS @ @ WIPER GAS CHROMATOGRAPHY(ppm) SURVEY METHANE(C-1) @ @ CONNECTION GAS HIGH ETHANE(C-2) @ @ AVG PROPANE(C-3) @ @ CURRENT BUTANE(C-4) @ @ CURRENT BACKGROUND/AVG 0/3 PENTANE(C-5) @ @ HYDROCARBON SHOWS N/A INTERVAL LITHOLOGY/REMARKS GAS DESCRIPTION LITHOLOGY PRESENT LITHOLOGY PTSM.Rig up and test CPR.Test CPR to 250/4000 psi.PJSM.Rig down test equipment.Set wear ring.PJSM.Make up BHA to 2 7/8"drill pipe. Mill,X/O,4.5"casing scraper and bit sub.PJSM.Run into hole with 2 7/8"drill pipe from surface to 2704'.PJSM.Make up X-O,X-O pin to pin,& DAILY 5/8"scraper,bit sub,1 stand drill pipe and jars.PJSM.Continue running into hole with 4"drill pipe from 2704'to 7891'.PJSM.Fill pipe at top of ACTIVITY liner.Continue running into hole with 4"drill pipe.From 7891'to 8482'.PTSM>Run into hole with 4"drill pipe from 8482'to 10565'.PJSM. SUMMARY Attempt to circulate conventionally and reverse circulate without success and rig down.PJSM.Pull out of the hole from 10545'to 7850'.Break circulation and circulate at 7850'154 spm @ 2000 psi.PJSM.Run into hole and break circulation every 5 stands from 7580'to 10585'.Circulate and pump. EPOCH PERSONNEL ON BOARD 3 DAILY COST 2965.00 REPORT BY John Lundy file://C:\DOCUMENTS AND SETTINGS\EPOCHADMIN\IVIY DOCUMENTS\MY WE... 5/18/2011 Daily Report Page 1 of 1 Buccaneer Alaska Operations Wildcat DAILY WELLSITE REPORT Kenai Loop#1 CANRIG REPORT FOR Larry McAllister;Bob Davis DATE May 18,2011 DEPTH 10678 PRESENT OPERATION L/D Pipe TIME 2400 YESTERDAY 10678 24 HOUR FOOTAGE 0 CASING INFORMATION 7 5/8"@ 8024'4 1/2"@ 10678'/hanger at 7891' DEPTH INCLINATION AZIMUTH VERTICAL DEPTH SURVEY DATA BIT INFORMATION INTERVAL CONDITION REASON NO. SIZE TYPE S/N JETS IN OUT FOOTAGE HOURS T/B/C PULLED N/A DRILLING PARAMETERS HIGH LOW AVERAGE CURRENT AVG RATE OF PENETRATION @ @ FT/HR SURFACE TORQUE @ @ AMPS WEIGHT ON BIT @ @ KLBS ROTARY RPM @ @ RPM PUMP PRESSURE @ @ PSI DRILLING MUD REPORT DEPTH 10680/10667 MW 10.2 VIS 28 PV YP FL Gels CL- Brine FC SOL SD TR OIL MBL pH 8.7 Ca+ CCI MWD SUMMARY INTERVAL TO TOOLS GAS SUMMARY(units) HIGH LOW AVERAGE DITCH GAS @ @ TRIP GAS CUTTING GAS @ @ WIPER GAS CHROMATOGRAPHY(ppm) SURVEY METHANE(C-1) @ @ CONNECTION GAS HIGH ETHANE(C-2) @ @ AVG PROPANE(C-3) @ @ CURRENT BUTANE(C-4) @ @ CURRENT BACKGROUND/AVG 0/3 PENTANE(C-5) @ @ HYDROCARBON SHOWS N/A INTERVAL LITHOLOGY/REMARKS GAS DESCRIPTION LITHOLOGY PRESENT LITHOLOGY PTSM.Pump safe surf pill.Pump high vis sweep.Displace mud with 9.6 ppg brine.Shut down circulation.Clean and flush pits and lines.PJSM. DAILY Remove shaker screens.Clean shakers through pits 4 and 5.Clean out trip tank.Flush bleeder lines.PJSM.Test casing to 4000 psi.PJSM. ACTIVITY Rig-up filter system for brine.PJSM.Start circulating and filtering brine through filter system.Clean pits 1 and 2.PTSM.Continue to circulate SUMMARY and condition brine.Clean pit#3.Filter brine and weight up to 10.2 ppg while circulating.Repair suction rubbers.PJSM.Pull out of the hole laying down 4"drill pipe from 10585'to 6500'. EPOCH PERSONNEL ON BOARD 2 DAILY COST 2465.00 REPORT BY John Lundy file://C:\DOCUMENTS AND SETTINGS\EPOCHADMIN\IVIY DOCUMENTS\IVIY WE... 5/19/2011 Daily Report Page 1 of 1 Buccaneer Alaska Operations Wildcat DAILY WELLSITE REPORT CAN Kenai Loop#1 RAG REPORT FOR Larry McAllister;Bob Davis DATE May 19,2011 DEPTH 10678 PRESENT OPERATION Prep for BOP Test TIME 2400 YESTERDAY 10678 24 HOUR FOOTAGE 0 CASING INFORMATION 7 5/8"@ 8024'4 1/2"@ 10678'/hanger at 7891' DEPTH INCLINATION AZIMUTH VERTICAL DEPTH SURVEY DATA BIT INFORMATION INTERVAL CONDITION REASON NO. SIZE TYPE S/N JETS IN OUT FOOTAGE HOURS T/B/C PULLED N/A DRILLING PARAMETERS HIGH LOW AVERAGE CURRENT AVG RATE OF PENETRATION @ @ FT/HR SURFACE TORQUE @ @ AMPS WEIGHT ON BIT @ @ KLBS ROTARY RPM @ @ RPM PUMP PRESSURE @ @ PSI DRILLING MUD REPORT DEPTH 10680/10667 MW 10.2 VIS 28 PV YP FL Gels CL- Brine FC SOL SD OIL MBL pH 8,7 Ca+ CCI MWD SUMMARY INTERVAL TO TOOLS GAS SUMMARY(units) HIGH LOW AVERAGE DITCH GAS @ @ TRIP GAS CUTTING GAS @ @ WIPER GAS CHROMATOGRAPHY(ppm) SURVEY METHANE(C-1) @ @ CONNECTION GAS HIGH ETHANE(C-2) @ @ AVG PROPANE(C-3) @ @ CURRENT BUTANE(C-4) @ @ CURRENT BACKGROUND/AVG No Circulation PENTANE(C-5) @ @ HYDROCARBON SHOWS N/A INTERVAL LITHOLOGY/REMARKS GAS DESCRIPTION LITHOLOGY PRESENT LITHOLOGY PTSM.Pull out of the hole laying down 4"drill pipe from 6500'to 2747'.PJSM.Change out elevators.Install stripping rubber.Lay downl joint. PJSM.Continue pulling out of the hole.Stand back 35 stands 2 7/8"drill pipe from 2747'to 560'.Lay down 2 7/8"drill pipe from 560'to mill. DAILY PJSM.Pick up floor and rig for wireline operations.PJSM.Finish rigging up all wireline equipment.Rig up shives and wireline units.Plumb in air ACTIVITY power and fuel to Schlumberger unit.Rig up cable and tools.Load radio-active source.Run into hole with wireline and run CNL,GR and CCL SUMMARY logs.PTSM.Unload sources and rig down Schlumberger wireline.PJSM>Rig down pitcher nipple and equipment above annular.Install shooting flange.PJSM.Rig up Expro wireline.PJSM.Run into hole with wireline—4.5"liner CBL.Rig down 4,/2"wireline tools and rig up 7 5/8"tools.Run into hole with and cement bond log(CBL)7 5/8"casing.PJSM.Rig down wireline.PJSM.Rig down shooting flange.Rig up pitcher nipple and equipment above annular. EPOCH PERSONNEL ON BOARD 2 DAILY COST 3565.00 REPORT BY John Lundy file://C:\DOCUMENTS AND SETTINGS\EPOCHADMIN\MY DOCUMENTS\MY WE... 5/20/2011 Daily Report Page 1 of 1 Buccaneer Alaska Operations Wildcat DAILY WELLSITE REPORT Kenai Loop#1 CAN G REPORT FOR Larry McAllister;Bob Davis DATE May 20,2011 DEPTH 10678 PRESENT OPERATION Re-spool drill line TIME 2400 YESTERDAY 10678 24 HOUR FOOTAGE 0 CASING INFORMATION 7 5/8"@ 8024'4 1/2"@ 10678'/hanger at 7891' DEPTH INCLINATION AZIMUTH VERTICAL DEPTH SURVEY DATA BIT INFORMATION INTERVAL CONDITION REASON NO. SIZE TYPE S/N JETS IN OUT FOOTAGE HOURS T/B/C PULLED N/A DRILLING PARAMETERS HIGH LOW AVERAGE CURRENT AVG RATE OF PENETRATION @ @ FT/HR SURFACE TORQUE @ @ AMPS WEIGHT ON BIT @ @ KLBS ROTARY RPM @ @ RPM PUMP PRESSURE @ @ PSI DRILLING MUD REPORT DEPTH 10680/10667 MW 10.2 VIS 28 PV YP FL Gels CL- Brine FC SOL SD OIL MBL pH 8.7 Ca+ CCI MWD SUMMARY INTERVAL TO TOOLS GAS SUMMARY(units) HIGH LOW AVERAGE DITCH GAS @ @ TRIP GAS CUTTING GAS @ @ WIPER GAS CHROMATOGRAPHY(ppm) SURVEY METHANE(C-1) @ @ CONNECTION GAS HIGH ETHANE(C-2) @ @ AVG PROPANE(C-3) @ @ CURRENT BUTANE(C-4) @ @ CURRENT BACKGROUND/AVG No Circulation PENTANE(C-5) @ @ HYDROCARBON SHOWS N/A INTERVAL LITHOLOGY/REMARKS GAS DESCRIPTION LITHOLOGY PRESENT LITHOLOGY PTSM.Air up boot to riser and flow line adaptor.Rig up trio-p tank actuator.Button up top of cellar.PJSM.Rig up to test BOPS.PJSM.Test upper top drive valve(fail).Test lower top drive valve(good0.Check all PVTs,TT alarm,G/L alarm and flow line alarm.Test check valve(fail).Rebuild check valve.Test annular to 250/2500 psi(good).Test variable pipe rams(fail).Change out variables to 2 7/8"pipe rams.Change out Top drive valves.PJSM.Test dart valve,upper top drive valve,check valve,choke valves#10,#11,#12,upper pipe rams,floor valve,outside kill,choke DAILY valves#6,#9,#8 and lower top drive valve.Test inside kill valve(fail,leak on the well-head).PJSM.Hammer up well-head flange and re-test(fail). ACTIVITY Hammer up and test inside kill,choke valves#2,#&,#%(good).Test blinds and valves#3 and#4.PTSM.Continue testing blinds,Choke manifold SUMMARY valves#3 and#4(no good)..Re-dress test plug.Change out choke manifold bleeder.Change out test pump shut in valve.Hammer up spacer tool T/B 2x.Hammer up DSA T/B 2x.Hammer up single and double gate.Open up blind ram doors and inspect/clean.Re-test blind rams and Choke manifold valves#3 and#4(good test).Test Choke manifold valves#1 (good test).Test HCR(good).Test manual choke valve(good).Test lower pipe rams(good).Test gas alarms(good).Koomey performance test(good).Rig down test equipment.PJSM.Set wear ring.Clean up rig floor, cat walk and cellar. EPOCH PERSONNEL ON BOARD 1 DAILY COST 2165.00 REPORT BY John Lundy Daily Report Page 1 of 1 Buccaneer Alaska Operations $t Wildcat DAILY WELLSITE REPORT Kenai Loop#1 CANRIG REPORT FOR Larry McAllister;Bob Davis DATE May 21,2011 DEPTH 10678 PRESENT OPERATION M/U Perf BHA TIME 2400 YESTERDAY 10678 24 HOUR FOOTAGE 0 CASING INFORMATION 7 5/8"@ 8024'4 1/2"@ 10678'/hanger at 7891' DEPTH INCLINATION AZIMUTH VERTICAL DEPTH SURVEY DATA BIT INFORMATION INTERVAL CONDITION REASON NO. SIZE TYPE S/N JETS IN OUT FOOTAGE HOURS T/B/C PULLED N/A DRILLING PARAMETERS HIGH LOW AVERAGE CURRENT AVG RATE OF PENETRATION @ @ FT/HR SURFACE TORQUE @ @ AMPS I WEIGHT ON BIT @ @ KLBS ROTARY RPM @ @ RPM PUMP PRESSURE @ @ PSI DRILLING MUD REPORT DEPTH 10680/10667 MW 10.2 VIS 28 PV YP FL Gels CL- Brine FC SOL SD OIL MBL pH 8.8 Ca+ CCI MWD SUMMARY INTERVAL TO TOOLS GAS SUMMARY(units) HIGH LOW AVERAGE DITCH GAS @ @ TRIP GAS CUTTING GAS @ @ WIPER GAS CHROMATOGRAPHY(ppm) SURVEY METHANE(C-1) @ @ CONNECTION GAS HIGH ETHANE(C-2) @ @ AVG PROPANE(C-3) @ @ CURRENT BUTANE(C-4) @ @ CURRENT BACKGROUND/AVG No Circulation PENTANE(C-5) @ @ HYDROCARBON SHOWS N/A INTERVAL LITHOLOGY/REMARKS GAS DESCRIPTION LITHOLOGY PRESENT LITHOLOGY PTSM.Change out drilling line.PJSM.Grease top drive,blocks crown and elevators.Set and check C.O.M.Rig down tools,scraper,mill and DAILY cross-over subs.Tighten hydraulic leak on O.D.S.Break out line.Service carrier.PJSM.Clean under mud boat.PJSM.Pressure test Expro lines ACTIVITY to 250,500,1000,2500,And 5000 psi.PJSM.Change out suction gasket in number 2 pit.PJSM.Rig up and run into hole with wireline 3.75" SUMMARY gauge ring to 10560'.Log from 9800'to 7800'.PTSM.Continue with wireline operations.Check com,pull out of the hole and rig down from 3.75". Rig up to run 6.60"gauge ring and junk basket on Expro wireline.Run into hole to liner top 7885'.Pull back to surface and rig down.PJSM with wireline crews.Make up BHA with guns and packer assembly EPOCH PERSONNEL ON BOARD 1 DAILY COST 2065.00 REPORT BY John Lundy F:1...//!n.\r-rr'T TA NL`ATT 0 A ATTN 0L'TTTATr C\L'D!Il"TJ A TIT/TTAT\A ITV Tl/lr'T TT i1U1TTC'\T AV U T1r C I')')/')(111 Daily Report Page 1 of 1 Buccaneer Alaska Operations Wildcat DAILY WELLSITE REPORT Kenai Loop#1 CANRIG REPORT FOR Larry McAllister;Bob Davis DATE May 22,2011 DEPTH 10678 PRESENT OPERATION R/U Test Head TIME 2400 YESTERDAY 10678 24 HOUR FOOTAGE 0 CASING INFORMATION 7 5/8"@ 8024'4 1/2"@ 10678'/hanger at 7891' DEPTH INCLINATION AZIMUTH VERTICAL DEPTH SURVEY DATA BIT INFORMATION INTERVAL CONDITION REASON NO. SIZE TYPE S/N JETS IN OUT FOOTAGE HOURS T/B/C PULLED N/A DRILLING PARAMETERS HIGH LOW AVERAGE CURRENT AVG RATE OF PENETRATION @ @ FT/HR SURFACE TORQUE @ @ AMPS WEIGHT ON BIT @ @ KLBS ROTARY RPM @ @ RPM PUMP PRESSURE @ @ PSI DRILLING MUD REPORT DEPTH 10680/10667 MW 10.2 VIS 28 PV YP FL Gels CL- Brine FC SOL SD OIL MBL pH 8.8 Ca+ CCI MWD SUMMARY INTERVAL TO TOOLS GAS SUMMARY(units) HIGH LOW AVERAGE DITCH GAS @ @ TRIP GAS CUTTING GAS @ @ WIPER GAS CHROMATOGRAPHY(ppm) SURVEY METHANE(C-1) @ @ CONNECTION GAS HIGH ETHANE(C-2) @ @ AVG PROPANE(C-3) @ @ CURRENT BUTANE(C-4) @ @ CURRENT BACKGROUND/AVG No Circulation PENTANE(C-5) @ @ HYDROCARBON SHOWS N/A INTERVAL LITHOLOGY/REMARKS GAS DESCRIPTION LITHOLOGY PRESENT LITHOLOGY PTSM.Rig up wireline equipment.Run into hole with wireline.Set packer at 9666'.PJSM.Make up BHA and run into hole,shoe.PJSM.Run DAILY into hole with 2 7/8"drill pipe from surface to 1871'.Pick up,drift and make up Drill collar and BHA from 1871'to 2138.34'.PJSM.Rig up ACTIVITY Weatherford tongs,tie back and tugger.Rig down elevators.Rig up fill line.PJSM.Run into hole with 2 7/8"EVE from 2138'to 4246'.PTSM. SUMMARY Continue running into hole with 2 7/8"EVE from 4226'to 9670'.Stab into seal assemble and test to 500 psi on backside(good).PJSM.Change out elevators and make up test head.Rig up cement hose and Expro equipment to test head. EPOCH PERSONNEL ON BOARD 1 DAILY COST 2065.00 REPORT BY John L:undy file://C:\DOCUMENTS AND SETTINGS\EPOCHADMIN\MY DOCUMENTS\MY WE... 5/23/2011 Daily Report Page 1 of 1 Buccaneer Alaska Operations Wildcat DAILY WELLSITE REPORT Kenai Loop#1 CANRIG REPORT FOR Larry McAllister;Bob Davis DATE May 22,2011 DEPTH 10678 PRESENT OPERATION Flow/Monitor well TIME 2400 YESTERDAY 10678 24 HOUR FOOTAGE 0 CASING INFORMATION 7 5/8"@ 8024'4 1/2"@ 10678'/hanger at 7891' SURVEY DATA DEPTH INCLINATION AZIMUTH VERTICAL DEPTH BIT INFORMATION INTERVAL CONDITION REASON NO. SIZE TYPE S/N JETS IN OUT FOOTAGE HOURS T/B/C PULLED N/A DRILLING PARAMETERS HIGH LOW AVERAGE CURRENT AVG RATE OF PENETRATION @ @ FT/HR SURFACE TORQUE @ @ AMPS WEIGHT ON BIT @ @ KLBS ROTARY RPM @ @ RPM PUMP PRESSURE @ @ PSI DRILLING MUD REPORT DEPTH 10680/10667 MW 10.1 VIS 28 PV YP FL Gels CL- Brine FC SOL SD OIL MBL pH 8.8 Ca+ CCI MWD SUMMARY INTERVAL TO TOOLS GAS SUMMARY(units) HIGH LOW AVERAGE DITCH GAS @ @ TRIP GAS CUTTING GAS @ @ WIPER GAS CHROMATOGRAPHY(ppm) SURVEY METHANE(C-1) @ @ CONNECTION GAS HIGH ETHANE(C-2) @ @ AVG PROPANE(C-3) @ @ CURRENT BUTANE(C-4) @ @ CURRENT BACKGROUND/AVG No Circulation PENTANE(C-5) @ @ HYDROCARBON SHOWS N/A INTERVAL LITHOLOGY/REMARKS GAS DESCRIPTION LITHOLOGY PRESENT LITHOLOGY PTSM.Waiting on daylight.PJSM.Break circulation.Flush and pressure test lines(BJ)400/5000 psi.PJSM.Displace with nitrogen,47 bbls DAILY return.Shut down pump,PJSM.Rig up Expro equipment.Slack off and stab into packer.Set 15Kpsi on packer.Fill Expro lines.Pressure test ACTIVITY Expro surface lines to 5000 psi(fail).Hammer up unions and re-test to 5000 psi(good).Bleed to 3500 psi.Open W.V.Bleed back to 2600 psi SUMMARY cushion pressure.Close hydrill and open kill valve.PJSM.Apply 3000 psi to the annulus with rig pumps.Increase to 3500 psi with test pump. Lick Trion tester valve to fail-safe.Open crown valve.Drop bar and fire guns.Flow well to testers.PTSM.Flow well and monitor casing psi and hook load. EPOCH PERSONNEL ON BOARD 1 DAILY COST 2165.00 REPORT BY John Lundy file://C:\Documents and Settines\EoochAdmin\Mv Documents\Mv Wells\Buccaneer\2011... 5/24/2011 Daily Report Page 1 of 1 Buccaneer Alaska Opns,LLC Wildcat DAILY WELLSITE REPORT r' Kenai Loop#1 cog jojciG REPORT FOR Larry McAllister;Bob Davis DATE May 24,2011 DEPTH 10678.00000 PRESENT OPERATION Flow/Monitor Well TIME 2400 YESTERDAY 10678.00000 24 HOUR FOOTAGE 0 CASING INFORMATION 7 5/8"@ 8024'4 1/2"@ 10678'/hanger at 7891' DEPTH INCLINATION AZIMUTH VERTICAL DEPTH SURVEY DATA BIT INFORMATION INTERVAL CONDITION REASON NO. SIZE TYPE S/N JETS IN OUT FOOTAGE HOURS T/B/C PULLED DRILLING PARAMETERS HIGH LOW AVERAGE CURRENT AVG RATE OF PENETRATION @ @ FT/HR SURFACE TORQUE @ @ AMPS WEIGHT ON BIT @ @ KLBS ROTARY RPM @ @ RPM PUMP PRESSURE @ @ PSI DRILLING MUD REPORT DEPTH 10680/10667 MW 10.1 VIS 28 PV YP FL Gels CL- Brine FC SOL SD OIL MBL pH 8.8 Ca-, CCI MWD SUMMARY INTERVAL TO TOOLS GAS SUMMARY(units) HIGH LOW AVERAGE DITCH GAS @ @ TRIP GAS CUTTING GAS @ @ WIPER GAS CHROMATOGRAPHY(ppm) SURVEY METHANE(C-1) @ @ CONNECTION GAS HIGH ETHANE(C-2) @ @ AVG PROPANE(C-3) @ @ CURRENT BUTANE(C-4) @ @ CURRENT BACKGROUND/AVG PENTANE(C-5) @ @ HYDROCARBON SHOWS INTERVAL LITHOLOGY/REMARKS GAS DESCRIPTION LITHOLOGY PRESENT LITHOLOGY DAILY ACTIVITY PTSM,Flow well and monitor casing psi and hook load.Continue flowing well and monitor casing psi and hood load.PTSM;Flow well and monitor casing psi and hook load.PJSM;Bleed SUMMARY off casing pressure psi and shut in well and monitor hook load. EPOCH PERSONNEL ON BOARD 1 DAILY COST$2165 REPORT BY Zach Beekman file://C:\DOCUMENTS AND SETTINGS\EPOCHADMIN\MY DOCUMENTS\MY WE... 5/25/2011 Daily Report Page 1 of 1 Buccaneer Alaska Opns,LLC Wildcat DAILY WELLSITE REPORT ' , Kenai Loop#1 c4, I, IRIc3 REPORT FOR Larry McAllister;Bob Davis DATE May 25,2011 DEPTH 10678.00000 PRESENT OPERATION Flow/Monitor well TIME 2400 YESTERDAY 10678.00000 24 HOUR FOOTAGE 0 CASING INFORMATION 7 5/8"@ 8024'4 1/2"@ 10678'/hanger @ 7891' DEPTH INCLINATION AZIMUTH VERTICAL DEPTH SURVEY DATA BIT INFORMATION INTERVAL CONDITION REASON NO. SIZE TYPE S/N JETS IN OUT FOOTAGE HOURS T/B/C PULLED DRILLING PARAMETERS HIGH LOW AVERAGE CURRENT AVG RATE OF PENETRATION @ @ FT/HR SURFACE TORQUE @ @ AMPS WEIGHT ON BIT @ @ KLBS ROTARY RPM @ @ RPM PUMP PRESSURE @ @ PSI DRILLING MUD REPORT DEPTH 10680/10667 MW 10.1 VIS 28 PV YP FL Gels CL- Brine FC SOL SD OIL MBL pH 8.8 Ca+ CCI MWD SUMMARY INTERVAL TO TOOLS GAS SUMMARY(units) HIGH LOW AVERAGE DITCH GAS @ @ TRIP GAS CUTTING GAS @ @ WIPER GAS CHROMATOGRAPHY(ppm) SURVEY METHANE(C-1) @ @ CONNECTION GAS HIGH ETHANE(C-2) @ @ AVG PROPANE(C-3) @ @ CURRENT BUTANE(C-4) @ @ CURRENT BACKGROUND/AVG PENTANE(C-5) @ @ HYDROCARBON SHOWS INTERVAL LITHOLOGY/REMARKS GAS DESCRIPTION LITHOLOGY PRESENT LITHOLOGY PTSM.Monitor hood load 63-64K.Continue monitoring hook load 63-64K.PJSM,Pressure up annulus to 3000 psi with rig pumps,bring up to 3500 psi with test pump.Bleed off pressure. DAILY Pressure up annulus to 3000 psi with rig pumps.Bring up to 3500 psi with test pump.Bleed off to 2500 psi.Flow to well testers.PJSM.Flow well to testers.PTSM.Flow well and monitor casing ACTIVITY pressure and hook load.PJSM.Bleed off anular psi from 2860 to 2410 psi.Continue monitoring casing pressure and hook load(48-51 K).PJSM.Bleed off annular psi from 2760 to 2460 psi. SUMMARY Conitnue monitoring casing pressure and hook load.PJSM.Bleed off annular psi born 2580 to 0 psi(well shut in).Continue to monitor hook load(59K).Pump up annular pressure with test pump to 210 psi and monitor. EPOCH PERSONNEL ON BOARD 1 DAILY COST$2065 REPORT BY Zach Beekman file://C:\DOCUMENTS AND SETTINGS\EPOCHADMIN\IVIY DOCUMENTS\IVIY WE... 5/26/2011 Daily Report Page 1 of 1 Buccaneer Alaska Opns,LLC z Wildcat DAILY WELLSITE REPORT Kenai Loop R1 CANRIG REPORT FOR Larry McAllister,Bob Davis DATE May 26,2011 DEPTH 10678.00000 PRESENT OPERATION Flow/Monitor well TIME 2400 YESTERDAY 10678.00000 24 HOUR FOOTAGE 0 CASING INFORMATION 7 5/8"@ 8024'4 1/2"@ 10678'/hanger @ 7891' DEPTH INCLINATION AZIMUTH VERTICAL DEPTH SURVEY DATA BIT INFORMATION INTERVAL CONDITION REASON NO. SIZE TYPE S/N JETS IN OUT FOOTAGE HOURS T/B/C PULLED DRILLING PARAMETERS HIGH LOW AVERAGE CURRENT AVG RATE OF PENETRATION @ @ FT/HR SURFACE TORQUE @ @ AMPS WEIGHT ON BIT @ @ KLBS ROTARY RPM @ @ RPM PUMP PRESSURE @ @ PSI DRILLING MUD REPORT DEPTH 10680/10667 MW 10.1 VIS PV YP FL Geis CL- Brine FC SOL SD OIL MBL pH 8.8 Ca+ CCI MWD SUMMARY INTERVAL TO TOOLS GAS SUMMARY(units) HIGH LOW AVERAGE DITCH GAS @ @ TRIP GAS CUTTING GAS @ @ WIPER GAS CHROMATOGRAPHY(ppm) SURVEY METHANE(C-1) @ @ CONNECTION GAS HIGH ETHANE(C-2) @ @ AVG PROPANE(C-3) @ @ CURRENT BUTANE(C-4) @ @ CURRENT BACKGROUND/AVG PENTANE(C-5) @ @ HYDROCARBON SHOWS INTERVAL LITHOLOGY/REMARKS GAS DESCRIPTION LITHOLOGY PRESENT LITHOLOGY DAILY ACTIVITY PTSM.Monitor well,200 psi on annulus.Continue to monitor well with 200 psi an annulus.PJSM.Open circular valve,close circular valve.Continue to monitor the well with 400 psi on SUMMARY annulus.PTSM.Monitor hookload and annulus psi.Clean pits.PJSM.Pump up annulus to 700 psi and continue to monitor pressure and hookload.Fill pits and mix brine. EPOCH PERSONNEL ON BOARD 1 DAILY COST$2065 REPORT BY Zach Beekman file://C:\DOCUMENTS AND SETTINGS\EPOCHADMIN\MY DOCUMENTS\MY WE... 5/27/2011 Daily Report Page 1 of 1 Buccaneer Alaska Opns,LLC Wildcat DAILY WELLSITE REPORT ciAraG Kenai Loop#1 REPORT FOR Larry McAllister,Bob Davis DATE May 27,2011 DEPTH 10678.00000 PRESENT OPERATION RIH with plug TIME 2400 YESTERDAY 10678.00000 24 HOUR FOOTAGE 0 CASING INFORMATION 7 5/8"@ 8024'4 1/2"@ 10678'/hanger @ 7891' DEPTH INCLINATION AZIMUTH VERTICAL DEPTH SURVEY DATA BIT INFORMATION INTERVAL CONDITION REASON NO. SIZE TYPE S/N JETS IN OUT FOOTAGE HOURS T/B/C PULLED DRILLING PARAMETERS HIGH LOW AVERAGE CURRENT AVG RATE OF PENETRATION @ @ FT/HR SURFACE TORQUE @ @ AMPS WEIGHT ON BIT @ @ KLBS ROTARY RPM @ @ RPM PUMP PRESSURE @ @ PSI DRILLING MUD REPORT DEPTH 10680/10667 MW 11.0 VIS PV YP FL Gels CL- Brine FC SOL SD OIL MBL pH 7.8 Ca-i- CCI MWD SUMMARY INTERVAL TO TOOLS GAS SUMMARY(units) HIGH LOW AVERAGE DITCH GAS @ @ TRIP GAS CUTTING GAS @ @ WIPER GAS CHROMATOGRAPHY(ppm) SURVEY METHANE(C-1) @ @ CONNECTION GAS HIGH ETHANE(C-2) @ @ AVG PROPANE(C-3) @ @ CURRENT BUTANE(C-4) @ @ CURRENT BACKGROUND/AVG PENTANE(C-5) @ @ HYDROCARBON SHOWS INTERVAL LITHOLOGY/REMARKS GAS DESCRIPTION LITHOLOGY PRESENT LITHOLOGY PTSM.Monitor well,annulus pressure,and hook load.Mix sodium bromide to kill well.Continue to monitor well,annulus pressure,and hook load.Continue to mix sodium bromide.PTSM.Monitor DAILY annulus pressure and hook load.Continue to mix kill fluid and pill.PJSM.Pressure annulus to 3500 psi and bleed off to 2500 to open titan valve.PJSM.Rig up and test BJ lines to 6000 psi and ACTIVITY bleed back to 3500 psi.Open master valve and bull head 11.0 ppg sodium bromide with BJ pump.Pumped away 55 bbls.Shut down pumps and monitor.Bleed off to 0 psi and monitor(1 bbl SUMMARY return).PJSM.Rig down Flo head,lay down tools,rig up lubricator assembly and wireline.PJSM.Test BJ lines and Expro lubricator head to 3500 psi(good).Open master valve and check tubing pressure(1440 psi)and run in hole with bridge plug. EPOCH PERSONNEL ON BOARD 1 DAILY COST$3215 REPORT BY Zach Beekman file://C:\Documents and Settings\EpochAdmin\My Documents\My Wells\Buccaneer\Daily... 5/28/2011 m 0 3 0 r- 0 co D r I- z G) v z n C r 0 cn G)
