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204-107
· . Image Project Well History File Cover Page XHVZE This page identifies those items that were not scanned during the initial production scanning phase. They are available in the original file, may be scanned during a special rescan activity or are viewable by direct inspection of the file. C;¿Q ~ - L Q 7- Well History File Identifier Production Scanning Stage 1 Page Count trom Scanned File: 41"3 (Count does include cover sheet) Page Count Matches Number in Scanning Preparation: ~ES (Q Date:3)¡ð! 07 Organizing (done) ~o-sided 111111111111111111I RIJìCAN tø' Color Items: ~GreYSCale Items: DIGITAL DATA D Diskettes, No. D Other, No/Type: D Poor Quality Originals: D Other: NOTES: Date 3,'/3/D7 Date Ó, 13/07 /3 x 30 = 31 ð Date:313/D 7 BY: ~ Project Proofing BY: ~ Scanning Preparation BY: ~ BY: Stage 1 If NO in stage 1 page(s) discrepancies were found: BY: Maria Date: Scanning is complete at this point unless rescanning is required. ReScanned BY: Maria Date: Comments about this tile: D Rescan Needed 1111111111111111111 OVERSIZED (Scannable) D Maps: D Other Items Scannable by a Large Scanner OVERSIZED (Non-Scannable) ~09S ot various kinds: D Other:: vvyp ,s~11111111II1111I11 V\1r 151 +;l9- = TOTAL PAGES ifl d- (Count does not include cover sheet) ) A Alf) 151 r V t r 11111111111111 1111I NO 151 M1 P YES NO 151 111111111111111111I III 11111111111 111I1 151 Quality Checked 11111111I11I111111I 10/6/2005 Well History File Cover Page.doc • 0 yw\-���/V, s, THE STATE Alaska Oil and Gas +y�� �' 0JAL S� o s,-rv.iti 1 Commission :=ice___- - == *,, . GOVERNOR SEAN PARNELL 333 West Seventh Avenue 0 - p. Anchorage, Alaska 99501-3572 ALAS Main: 907.279.1433 Fax: 907.276.7542 Mike Dunn SCANNED NO li - 3 201 Operations Engineer Hilcorp Alaska, LLC a b(,,,,i..-- f 6 7 3800 Centerpoint Drive, Suite 100 Anchorage, AK 99503 Re: Ninilchik Unit,Ninilchik Pool/SD Tyonek Underfined Gas Pool,Ninilchik Unit S Dionne 2 Sundry Number: 313-529 Dear Mr. Dunn: Enclosed is the approved Application for Sundry Approval relating to the above referenced well. Please note the conditions of approval set out in the enclosed form. As provided in AS 31.05.080, within 20 days after written notice of this decision, or such further time as the AOGCC grants for good cause shown, a person affected by it may file with the AOGCC an application for reconsideration. A request for reconsideration is considered timely if it is received by 4:30 PM on the 23rd day following the date of this letter, or the next working day if the 23rd day falls on a holiday or weekend. Sincerely, ) /14. i°941{, ti•---- Cathy P. Foerster Chair, Commissioner DATED this � day of October, 2013. Encl. • it ;3 RECEIVED STATE OF ALASKA toll° ALASKA OIL AND GAS CONSERVATION COMMISSION OCT Og ZO13 APPROVALS or) r�(to 13 APPLICATION FOR SUNDRY ���;� 20 MC 25.280 1.Type of Request: Abandon❑ Plug for Redrill El • Perforate New Pool ❑ Repair Well❑ Change Approved Program ❑ Suspend❑ Plug Perforations ❑ Perforate ❑ Pull Tubing 5 • Time Extension ❑ Operations Shutdown❑ Re-enter Susp.Well ❑ Stimulate ❑ Alter Casing❑ Other: Complete❑ 2.Operator Name: 4.Current Well Class: 5.Permit to Drill Number: Hilcorp Alaska,LLC Exploratory ❑ Development El " 204-107 3.Address: Stratigraphic ❑ Service ❑ 6•API Number. 3800 Centerpoint Drive,Anchorage AK,99503 50-133-20541-00-00 7.If perforating: /. . 8.Well Name and Number. What Regulation or Conservation Order governs well spacing in this pool? , tcj4 r r3 Will planned perforations require a spacing exception? Yes ❑ No 5 Ninilchik Unit S Dionne 2 9.Property Designation(Lease Number): 10.Field/Pool(s): ADL035924/ADL0389180 r Ninilchik Field/SD Tyonek Undefined Gas Pool 11. PRESENT WELL CONDITION SUMMARY Total Depth MD(ft): Total Depth TVD(ft): Effective Depth MD(ft): Effective Depth TVD(ft): Plugs(measured): Junk(measured): 11,094 • 8,007 ' 6,700 4,578 6,700,7,680'&9,643' N/A Casing Length Size MD TVD Burst Collapse Structural Conductor 119' 20" 119' 119' 3,060psi 1,500psi Surface 1,927' 9-5/8" 1,927' 1,576' 6,870psi 4,760psi Intermediate 5,942' 7" 5,942' 3,420' 7,240psi 5,410psi Production 7,806 4-1/2" 11,094' 8,007 8,430psi 7,500psi Liner Perforation Depth MD(ft): Perforation Depth TVD(ft): Tubing Size: Tubing Grade: Tubing MD(ft): See Attached Schematic See Attached Schematic 3.5 9.2#/L-80 3,291 Packers and SSSV Type: Packers and SSSV MD(ft)and TVD(ft): FHL&ZXP Packer&TE-5 SSSV 2,456'(MD)/1,815'(TVD)&5,733'(MD)/3,290'(TVD)and 412(MD)/411(TVD) 12.Attachments: Description Summary of Proposal 5 13.Well Class after proposed work: Detailed Operations Program ❑ BOP Sketch IN Exploratory ❑ Stratigraphic❑ Development IS Service ❑ 14.Estimated Date for 15.Well Status after proposed work: Commencing Operations: 2/18/2013 Oil ❑ Gas ❑ WDSPL ❑ Suspended EXP41,1 16.Verbal Approval: Date: N/A WINJ ❑ GINJ ❑ WAG ❑ Abandoned ill` Commission Representative: N/A GSTOR ❑ SPLUG 17.I hereby certify that the foregoing is true and correct to the best of my knowledge. Contact Mike Dunn Email mdunn@hilcorp.com Printed Name /+ir e D/' Title Operations Engineer Signature z -- Phone 907-777-8382 Date 10/4/2013 COMMISSION USE ONLY Conditions of approval: Notify Commission so that a representative may witness Sundry Number: Plug Integrity [ti BOP Test [d Mechanical Integrity Test ❑ Location Clearance ❑ Other: ,(G 2 S fi4 C. p o A e.s 11-----Al '' a1-i-1- S•Ispee%r c.s X1.1 ie-vjej: Spacing Exception Required? Yes ❑ No I Subsequent Form Required: /6 — r 0 7- APPROVED BY Approved by: f . ),,C4,2(/........--- COMMISSIONER THE COMMISSION Date: /0 0 — /3 Submit Form and Form 10-403(Revised 10/2012) •pproved°m um, 1 the from the date of approval. Attachments in Duplicate �8 OCT 11 21 L ("/�J/ !o /6 i L 1.I'' • • Well Prognosis Well: SD-2 Hilcorp Alaska,LLB Date: 10/4/2013 Well Name: Ninilchik Unit S Dionne 2 API Number: 50-133-20541-00-00 Current Status: SI Gas completion Leg: N/A Estimated Start Date: October 11, 2013 Rig: Cloverleaf Rig 4 ✓ Reg.Approval Req'd? 10-403 Date Reg.Approval Rec'vd: Regulatory Contact: Tom Fouts 777-8398 Permit to Drill Number: 204-107 First Call Engineer: Mike Dunn (907) 777-8382 (0) (907) 351-4191 (M) Second Call Engineer: Chris Kanyer (907) 777-8377 (0) (907) 250-0374(M) AFE Number: Current Bottom Hole Pressure: -945 psi Calculated from long term shut in Maximum Expected BHP: -945 psi @ 2,181' TVD based on a 0.443 psi/ft fluid gradient Max.Allowable Surface Pressure: -899 psi Brief Well Summary This well was drilled and completed as a gas well in 2004.Several zones produced for short periods but the well did not deliver on its potential. In early 2013 (under Sundry No. 313-058) the zones below 6700' were abandoned with a through-tubing bridge plug. However, a workover rig was unable to fish the old completion from the well. In an attempt to restore some production from the well, an overshot/shoe was stabbed over the old tubing and a packer was run. This was unsuccessful at restoring production to a commercial rate. The intent of this work is to P&A the open perforations and prepare the well for a sidetrack with a drilling rig. ,,r Summary Procedure 1. Set TWC. MIRU Cloverleaf Rig. ND Tree. Install DSA and NU 11" BOP. 2. Test BOPE to 250psi low/2,500psi high per standard AOGCC procedure. 3. Screw into hanger and straight pull shear release the FHL packer at 2,456' Circulate kill weight fluid around to kill well. Insure well is dead) POOH. S' ro 4. PU 7"casing scraper and RIH to 3100'. CBU. POOH. �g • U 5. PU 7" cement retainer RIH and set retain_ a Sa.Use the previously run CBL/CCL to set the retainer in the middle of a joint of casing. Test backside to make sure packer is set and sealing. Mix up 21 bbls of cement and place cement below the retainer and a balanced plug on top of retainer as follows: a. The volume equal to 100' below the bottom open perf(3706')to the depth of the retainer, less the displacement of the 4-1/2"tubing and fill around the lower annulus is determined to be 17 bbls. The 100' plug on top of retainer is determined to be 4 bbls.,--"" . .5G//7-ff- b. Displace 17 bbls below retainer. Sting out of retainer and place a balanced plug on top of cement on top of retainer with the remaining 4 bbls of cement. c. Pull 5 stands and reverse out to clean any cement that may have contaminated the tubing string. d. POOH. LD workstring. 6. Notify AOGCC to witness the casing test. WOC for 12 hours. Install chart recorder and pressure test casing to 2500 psi for 30 minutes and record same. 7. RU E-line and set a CIBP at a depth of 5'above a casing collar at the nearest collar deeper than 2000'. WLOH. 8. ND BOP, NU dry hole tree. RDMO the workover rig. 1� Apiece,. 1)1(/! f0 Cot rh?G , coAcon 140 1"4tl' f [l.1r !eco4.97 AK /mole ç/c/o/ 4 • • Well Prognosis Well: SD-2 I-Iilcorp Alaska,LL Date: 10/4/2013 9. The drilling rig will set a whip stock just above the CIBP at+1-2000', mill a window and sidetrack the well. These steps are detailed in the drilling procedure as part of the APD in a subsequent application. Attachments: 1. As-built Well Schematic 2. Proposed Well Schematic 3. BOP Schematic 14 • • Ninilchik Field Well #: Susan Dionne 02 SCHEMATIC Last Completed: 12/6/2004 fiileorp Alaska,tic PTD: 204-107 CASING DETAIL Size Type Wt/Grade/Conn ID Top Btm KB=156'(21' AGL) 20" Conductor 133#/K-55/PE 18.73 Surf 119' '; t' 9-5/8" Surface 47#/L-80/Mod Butt 8.681 Surf 1,927 7" Intermediate 26#/L-80/Mod Butt 6.276 Surf 5,942' " ' 4-1/2" Production 12.6#/L-80/Mod Butt 3.958 3,288' 11,094' ■ *: C TUBING DETAIL 20" 3 1/2" Tubing 9.3#/L-80/EUE I 2.990 I Surf 3,270' '.' rz, la JEWELRY DETAIL ' f No Depth Length OD ID Item oa la 420' 7.86 5.625 2.812 TE-5 555V 2.812 Nipple Profile '' 1 2,456' 7.35 5.980 2.875 Model FHL Packer Size 47B2 14 , 2 2,527' 1.15 4.5 2.812 "XN"Nipple 9-5/8"g ; � 3 3,288' 3.02 5.750 5.125 Cut Lip Shoe ' 4 5,733' Baker 4-1/2"ZXP Packer i,� , 5 6,725' CIBP _i : 1 6 7,680' 50' Cement Plug �7; 7 7,730' CIBP N 8 9,643' 57' Cement Plug Radalcut @ 3,302' jpg " 9 9,700' CIBP _ 10 10,580' Weatherford Retrievable BP Radalcut @ 3,617' '. B50 11 10,618' Weatherford Retrievable BP i, Radialcut @3,994 ,y. 12 10,770' CIBP V.� M PERFORATION DETAIL Radalcut @5,700' '` _ ', Zone Top(MD) Btm(MD) Length Top(ND) Btm(TVD) Size SPF Perf Date Sqz Date s +4 3,508' 3,526' 18' 2,264' 2,271' 2.5" 6 4/13/2013 3,543' 3,572' 29' 2,278' 2,290' 2.5" 6 4/13/2013 y. a . B50 3,599' 3,613' 14' 2,301' 2,307' 2.5" 6 4/13/2013 3,683' 3,706' 23' 2,335' 2,345' 2.5" 6 4/13/2013 7"P'a a;. ISOLATED PERFORATIONS TOC @6,700'.Thisisa ` Ti 6,751' 6,756' 5 4,044' 4,048' 3-3/8" 6 12/11/09 25'Plug ,) T2 7,766' 7,786' 20' 4,962' 4,980' 3-3/8" 6 12/3/04 4/12/06 '' 'Y'.1'6 T2 7,786' 7,826' 40' 4,980' 5,016' 3-3/8" 6 12/5/04 4/12/06 '"'' =,' T1 T3 9,727' 9,729' 2' 6,750' 6,752' 3-3/8" Sqz Gun 4/21/06 4/24/06 g T3 9,727' 9,745' 20' 6,750' 6,767' 3-3/8" 6 11/29/04 4/24/06 6 T3 9,729' 9,745' 16' 6,752' 6,767' 3-3/8" 6 5/6/06 T3 9,745' 9,747' 2' 6,767' 6,768 3-3/8" Sqz Gun 4/21/06 4/24/06 T3 10,009' 10,031' 22' 7,006' 7,026' 3-3/8" 6 11/17/04 ' '°°-�' T3 10,064' 10,099' 35' 7,056' 7,088' 3-3/8" 6 11/17/04 '' T3 10,099' 10,140' 41' 7,088' 7,125' 3-3/8" 6 11/16/04 --" T3 10,161' 10,181' 20' 7,145' 7,163' 3-3/8" 6 11/16/04 p ; q': T3 10,242' 10,302' 60' 7,219' 7,273' 3-3/8" 6 11/3/04 y T3 10,302' 10,330' 28' 7,273' 7,299' 3-3/8" 6 11/2/04 T3 10,671' 10,707' 36' 7,612' 7,646' 3-3/8" 6 Frac'd,#37K 20/40 sand VI "Ai i' T3 10,796' 10,854' 58' 7,728' 7,782' 3-3/8" 6 " ' OPEN HOLE/CEMENT DETAIL '' 8 12-1/4" hole, cmt w/420 sks(188 bbls)12 ppg class G with 40 bbls to surface. Bumped plug, i 9 5/8" W9 floats held. Cleaned fill tol0,500'CTM t 8-1/2" hole, cmt w/250 sks(110 bbls)12.5 ppg class G lead,followed by 162 sks(34 bbls) 5/5/zoos 7" ',`,, 15.8 ppg class G tail. 20 bbls of cmt to surface. Bumped plug,floats held. 10 7"hole,cmt w/724 sks(215 bbls)13.5 ppg.Displaced w/168 bbls of 6%KCL water.Bumped 7 "'11 4-1/2" plug w/3,230 psi. Applied pressure to 3,700 psi to set midstring packer&to 4,500 psi to ° . * p p p gP P VA .a ensure set. No cmt to surface. 17x- 12 MISC. INFORMATION INCLINATION DETAIL ,; -.- Weatherford Retrievable Bridge Plugs: KOP: 250'MD/TVD Top of Float Cellar@ P' > -10,580'MD(P-Test to 2000 psi surface Build: 4.02/100' 10,90 MD/7,89aTVD ) = ,4 4-1/2' ,. w/KCL water) Hold: 63.5 2 from 2,200'-5,000'MD -10,618'MD(would not test) Drop: 2.42/100'to 252 from 5,000'-7,206'MD TD=11,094' 7,680' Both plugs rated to 7500 psi above& Inclination at TD: 202 MAX HOLE ANGLE=63.5° a(�.2,200 10,000 psi from below. Azimuth: 3312 to 5,500'MD&3109 to TD 4-1/2" Short Joint Locations: @ 6,904'-6,925' MD @ 8,536'-8,557'MD Revised By:TDF 5/13/2013 14 • • Ninilchik Field Well #: Susan Dionne 02 PROPOSED Last Completed: 12/6/2004 HHilcorp Alaska.LLC PTD: 204-107 CASING DETAIL Size Type Wt/Grade/Conn ID Top Btm KB=156'(21' AGL) 20" Conductor 133#/K-55/PE 18.73 Surf 119' 9-5/8" Surface 47#/L-80/Mod Butt 8.681 Surf 1,927' �YZ �gL/�if' 6 s ?, 7" Intermediate 26#/L-80/Mod Butt 6.276 Surf 5,942' 2 ", 4-1/2" Production 12.6#/L-80/Mod Butt 3.958 3,288' 11,094' TUBING DETAIL t 4 1. 20" t 3-1/2" Tubing I 9.3#/L-80/EUE 2.990 Surf 3,270' JEWELRY DETAIL 3 st< > No Depth Length OD ID Item x 1 ±2,005' CIBP 1 2 ±3,288' Cement Retainer . 3 5,733' Baker 4-1/2"ZXP Packer 1 + 4 6,725' CIBP gs/s ' 6 5 7,680' 50' Cement Plug t' `, r 6 7,730' CIBP .ry 1 2-0c.5. 7 9,643' 57' Cement Plug 8 9,700' CIBP roc @±3,050 '�� 9 10,580' Weatherford Retrievable BP I . .^ *2 A.t ' 10 10,618' Weatherford Retrievable BP 11 10,770' CIBP L,1111'r B50 :I ` PERFORATION DETAIL BoC @±3,806' A` Zone Top(MD) Btm(MD) Length Top(TVD) Btm(TVD) Size SPF Perf Date Sqz Date 3,508' 3,526' 18' 2,264' 2,271' 2.5" 6 4/13/2013 I a 3,543' 3,572' 29' 2,278' 2,290' 2.5" 6 4/13/2013 LII at ,' B50 3,599' 3,613' 14' 2,301' 2,307' 2.5" 6 4/13/2013 I, !, 3,683' 3,706' _ 23' 2,335' 2,345' 2.5" 6 4/13/2013 T ISOLATED PERFORATIONS Ti a 6,751' 6,756' 5 4,044' 4,048' 3-3/8" 6 12/11/09 TOC @6,700'.This is i:, ' T2 7,766' 7,786' 20' 4,962' 4,980' 3-3/8" 6 12/3/04 4/12/06 25'plug -:i V T2 7,786' 7,826' 40' 4,980' 5,016' 3-3/8" 6 12/5/04 4/12/06 T3 9,727' 9,729' 2' 6,750' 6,752' 3-3/8" Sqz Gun 4/21/06 4/24/06 Ti T3 9,727' 9,745' 20' 6,750' 6,767' 3-3/8" 6 11/29/04 4/24/06 fit'5 T3 9,729' 9,745' 16' 6,752' 6,767' 3-3/8" 6 5/6/06 e T3 9,745' 9,747' 2' 6,767' 6,768 3-3/8" Sqz Gun 4/21/06 4/24/06 T3 10,009' 10,031' 22' 7,006' 7,026' 333---333///888""" 6 11/17/04 �} '- T3 10,064' 10,099' 35' 7,056' 7,088' " 6 11/17/04 '" 13 10,099' 10,140' 41' 7,088' 7,125' 6 11/16/04 "° 13 10,161' 10,181' 20' 7,145' 7,163' 3-3/8" 6 11/16/04 .4 4� ;� 13 10,242' 10,302' 60' 7,219' 7,273' 3-3/8" 6 11/3/04 ' � 13 10,302' 10,330' 28' 7,273' 7,299' 3-3/8" 6 11/2/04 T3 10,671' 10,707' 36' 7,612' 7,646' 3-3/8" 6 Frac'd,#37K 20/40 sand " T3 10,796' 10,854' 58' 7,728' 7,782' 3-3/8" 6 ' :' OPEN HOLE/CEMENT DETAIL "' 12-1/4" hole, cmt w/420 sks(188 bbls)12 ppg class G with 40 bbls to surface. Bumped plug, T 9-5/8" floats held. t 7.. 8-1/2" hole, cmt w/250 sks(110 bbls)12.5 ppg class G lead,followed by 162 sks(34 bbls) Cleaned fill to 10,5ar CTM 15.8 ppg class G tail. 20 bbls of cmt to surface. Bumped plug,floats held. 5/5/2006 e• isr .** '9 MI7"hole,cmt w/724 sks(215 bbls)13.5 ppg.Displaced w/168 bbls of 6%KCL water.Bumped > 4-1/2" plug w/3,230 psi. Applied pressure to 3,700 psi to set midstring packer&to 4,500 psi to ' o ensure set. No cmt to surface. 1 ?i� MISC. INFORMATION INCLINATION DETAIL .° 1 Weatherford Retrievable Bridge Plugs: KOP: 250'MD/TVD rtt pp r -10,580'MD(P Test to 2000 psi surface Build: 4.02/100' Top of Float Cellar@ S;' »k' w/KCL water) Hold: 63.59 from 2,200'-5,000'MD ioo7annoi7s9aTw Drop: 2.49/100'to 259 from 5,000'-7,206' MD 4uz"° °s'4 '• -10,618'MD(would not test) TD=11,094' PBTD=7,680' Both plugs rated to 7500 psi above& Inclination at TD: 209 MAX HOLE ANGLE=63.5°(a)2,200 10,000 psi from below. Azimuth: 3319 to 5,500'MD&3109 to TD 4-1/2" Short Joint Locations: @ 6,904'-6,925'MD @ 8,536'-8,557' MD Revised By:TDF 10/6/2013 • • Ninilchik Unit 2013 BOP Stack Hae„rp M,okm,1,11k Knight Oil Tools Rental 10/7/2013 Ninilchik Unit SD#2 Cloverleaf#4 BOP 3.98' Hydril GK 11"-5000 lit al11i lit iii III !PIP I[I III ciw-0 4.54' ®®® m 2 7/8-5 variables 11' 5000 �' __-� ... Blind 0.1 Arti Iii iii ill ill lit OSg27i 1\1600' Choke 21/161 Kill 0Mvalves 2�/�6SM M�. -- - ,o5 ,,\N6�` One H dwheel _ III III III !l llll 2.00' i 011' ;; 1! ? j Ellr 1 +l t: li A 1 liiiii at ail 14 ti Lt 4" :44 iii • • • Schwartz, Guy L (DOA) From: Tom Fouts <tfouts @hilcorp.com> Sent: Monday, October 07,2013 12:47 PM To: Schwartz,Guy L(DOA) Cc: Chris Kanyer; Mike Dunn Subject: RE:Abandonment of SD-02 for Sidetrack Procedure and Schematics (PTD 204-107) Guy, Will do on all items. Thank you for the quick review of the procedure. Tom Fouts Ops/Reg Tech Hilcorp Alaska, LLC tfouts @)hilco€. ,con Direct: (907)777-8398 Mobile: (907) 351-5749 From: Schwartz, Guy L(DOA) [mailta_quy_sch vartz a alaska.gov] Sent: Monday, October 07, 2013 11:02 AM To:Tom Fouts Cc: Mike Dunn; Chris Kanyer Subject: RE: Abandonment of SD-02 for Sidetrack Procedure and Schematics(PTD 204-107) Oh ...just saw something else. Please give me the volumes of cement you calc you will need for step 5 Guy Schwartz Senior Petroleum Engineer AOGCC 907-444-3433 cell 907-793-1226 office From: Schwartz, Guy L(DOA) Sent: Monday, October 07, 2013 10:47 AM To: Tom Fouts' Cc: Mike Dunn; Chris Kanyer Subject: RE: Abandonment of SD-02 for Sidetrack Procedure and Schematics(PTD 204-107) Tom, No big issues but make the following changes... 1. Need to detail well kill before pulling packer/tubing hanger. Circ KWF around first. 2. After step five is where witnessed casing test should be done. Should be done after cement has set up on top of the retainer. Do not need Pressure test after setting CIBP at 2000'. (le move step#7 to after step#5) 3. Also the procedure should include the drilling rig steps including setting whipstock and milling the window. 4. The 10-403 sundry should have "plug for redrill "checked off and a the well status will be suspended after work is completed. 1 e • • Guy Schwartz Senior Petroleum Engineer AOGCC 907-444-3433 cell 907-793-1226 office From:Tom Fouts[mailto:tfoutstcuhilcorp.com] Sent: Monday, October 07, 2013'9:48 AM To: Schwartz, Guy L(DOA) Cc: Mike Dunn; Chris Kanyer Subject: Abandonment of SD-02 for Sidetrack Procedure and Schematics Guy, We are planning to abandon the SD-02 and set up the wellbore for a sidetrack. Please review the attached documents and provide any pertinent feedback you deem necessary. Upon your review we will provide a sundry application for this work. Thanks, Tom Fouts I Ops/Reg Tech Hilcorp Alaska, LLC tfouts hilcma.con Direct: (907)777-8398 Mobile: (907)351-5749 2 • • Schwartz, Guy L (DOA) From: Schwartz,Guy L(DOA) Sent Monday,October 07, 2013 10:47 AM To: 'Tom Fouts' Cc: Mike Dunn;Chris Kanyer Subject RE:Abandonment of SD-02 for Sidetrack Procedure and Schematics (PTD 204-107) Tom, No big issues but make the following changes... 1. Need to detail well kill before pulling packer/tubing hanger. Circ KWF around first. 2. After step five is where witnessed casing test should be done.Should be done after cement has set up on top of the retainer. Do not need Pressure test after setting CIBP at 2000'. (ie move step#7 to after step#5) 3. Also the procedure should include the drilling rig steps including setting whipstock and milling the window. 4. The 10-403 sundry should have "plug for redrill "checked off and a the well status will be suspended after work is completed. Guy Schwartz Senior Petroleum Engineer EQ � ANN O 2,0'1'6 AOGCC S` 907-444-3433 cell 907-793-1226 office From: Tom Fouts [mailto tfoutsathilcorp__com] Sent: Monday, October 07, 2013 9:48 AM To: Schwartz, Guy L(DOA) Cc: Mike Dunn; Chris Kanyer Subject: Abandonment of SD-02 for Sidetrack Procedure and Schematics Guy, We are planning to abandon the SD-02 and set up the wellbore for a sidetrack. Please review the attached documents and provide any pertinent feedback you deem necessary. Upon your review we will provide a sundry application for this work. Thanks, Tom Fouts Ops/Reg Tech Hilcorp Alaska, LLC tfoutsahiIcorp.com Direct: (907)777-8398 Mobile: (907) 351-5749 1 • • Ninilchik Field Well#: Susan Dionne 02 PROPOSED Last Completed: 12/6/2004 Hilcoru Alaska,LLC PTD: 204-107 CASING DETAIL Size Type Wt/Grade/Conn ID Top Btm KB=156'(21' AGL) 20" Conductor 133#/K-55/PE 18.73 Surf 119' 9-5/8" Surface 47#/L-80/Mod Butt 8.681 Surf 1,927' • 7" Intermediate 26#/L-80/Mod Butt 6.276 Surf 5,942' 4-1/2" Production 12.68/L-80/Mod Butt 3.958 3,288' 11,094' TUBING DETAIL 3-1/2" I Tubing I 9.3#/L-80/EUE I 2.990 I Surf I 3,270' I JEWELRY DETAIL No Depth Length OD ID Item 1 ±2,005' CIBP 2 ±3,288' Cement Retainer 3 5,733' Baker 4-1/2"ZXP Packer 4 6,725' CIBP 9-5/8" 5 7,680' 50' Cement Plug 6 7,730' CIBP 1 7 9,643' 57' Cement Plug , �`Q 8 9,700' CIBP TOC@±3297_ _.- 2`vo I 9 10,580' Weatherford Retrievable BP 10 10,618' Weatherford Retrievable BP 11 10,770' CIBP B50 BOC@±3,806'. PERFORATION DETAIL Zone Top(MD) Btm(MD) Length Top(TVD) Btm(TVD) Size SPF Perf Date Sqz Date 3,508' 3,526' 18' 2,264' 2,271' 2.5" 6 4/13/2013 n :,3 B50 3,543' 3,572' 29' 2,278' 2,290' 2.5" 6 4/13/2013 3,599' 3,613' 14' 2,301' 2,307' 2.5" 6 4/13/2013 _ ; 3,683' 3,706' 23' 2,335' 2,345' 2.5" 6 4/13/2013 ISOLATED PERFORATIONS A T1 6,751' 6,756' 5 4,044' 4,048' 3-3/8" 6 12/11/09 T2 7,766' 7,786' 20' 4,962' 4,980' 3-3/8" 6 12/3/04 4/12/06 TOC @6,700'.This is 25,dk T2 7,786' 7,826' 40' 4,980' 5,016' 3-3/8" 6 12/5/04 4/12/06 T3 9,727' 9,729' 2' 6,750' 6,752' 3-3/8" Sqz Gun 4/21/06 4/24/06 T1 T3 9,727' 9,745' 20' 6,750' 6,767' 3-3/8" 6 11/29/04 4/24/06 T3 9,729' 9,745' 16' 6,752' 6,767' 3-3/8" 6 5/6/06 5 T3 9,745' 9,747' 2' 6,767' 6,768 3-3/8" Sqz Gun 4/21/06 4/24/06 6 T3 10,009' 10,031' 22' 7,006' 7,026' 3-3/8" 6 11/17/04 T3 10,064' 10,099' 35' 7,056' 7,088' 3-3/8" 6 11/17/04 T3 10,099' 10,140' 41' 7,088' 7,125' 3-3/8" 6 11/16/04 T3 10,161' 10,181' 20' 7,145' 7,163' 3-3/8" 6 11/16/04 T3 10,242' 10,302' 60' 7,219' 7,273' 3-3/8" 6 11/3/04 T3 10,302' 10,330' 28' 7,273' 7,299' 3-3/8" 6 11/2/04 T3 10,671' 10,707' 36' 7,612' 7,646' 3-3/8" 6 Frac'd,#37K 20/40 sand T3 10,796' 10,854' 58' 7,728' 7,782' 3-3/8" 6 I OPEN HOLE/CEMENT DETAIL 12-1/4" hole, cmt w/420 sks(188 bbls)12 ppg class G with 40 bbls to surface. Bumped plug, 9-5/8" floats held. 7„ 8-1/2" hole, cmt w/250 sks(110 bbls)12.5 ppg class G lead,followed by 162 sks(34 bbls) Cleaned fill to 10,500'C1M'-_ II 15.8 ppg class G tail. 20 bbls of cmt to surface. Bumped plug,floats held. s/s/zoos 7"hole,cmt w/724 sks(215 bbls)13.5 ppg.Displaced w/168 bbls of 6%KCL water.Bumped 4-1/2" plug w/3,230 psi. Applied pressure to 3,700 psi to set midstring packer&to 4,500 psi to 10 ensure set. No cmt to surface. iMISC. INFORMATION INCLINATION DETAIL PPP Weatherford Retrievable Bridge Plugs: KOP: 250'MD/TVD -10,580'MD(P-Test to 2000 psi surface Build: 4.09/100' Top of Float Collar @ w/KCL water) Hold: 63.52 from 2,200'-5,000'MD 10,970'Nv/7,8a81vD F, -10,618'MD(would not test) Drop: 2.42/100'to 259 from 5,000'-7,206'MD TD=11,094' PBTD=7,680' Both plugs rated to 7500 psi above& Inclination at TD: 202 MAX HOLE ANGLE=63.5°Ca.2,200 10,000 psi from below. Azimuth: 3312 to 5,500'MD&3109 to TD 4-1/2" Short Joint Locations: @ 6,904'-6,925'MD @ 8,536'-8,557'MD Revised By:TDF 10/6/2013 • • II Ninilchik Field Well #: Susan Dionne 02 SCHEMATIC Last Completed: 12/6/2004 Hilcorn Alaska,LLC P_TD_ : 204-107 CASING DETAIL Size Type Wt/Grade/Conn ID Top Btm KB=156'(21' AGL) 20" Conductor 133#/K-55/PE 18.73 Surf 119' ,,j . , is 9-5/8" Surface 47#/L-80/Mod Butt 8.681 Surf 1,927' 7" Intermediate 26#/L-80/Mod Butt 6.276 Surf 5,942' 4-1/2" Production 12.6#/L-80/Mod Butt 3.958 3,288' 11,094' TUBING DETAIL 13-1/2" I Tubing 9.3#/L-80/EUE I 2.990 I Surf I 3,270' 'Isss7, la JEWELRY DETAIL No Depth Length OD ID Item la 420' 7.86 5.625 2.812 TE-5 SSSV 2.812 Nipple Profile 1 2,456' 7.35 5.980 2.875 Model FFIL Packer Size 47B2 2 2,527' 1.15 4.5 2.812 "XN"Nipple 9-5/8"A 1 3 3,288' 3.02 5.750 5.125 Cut Lip Shoe 4 5,733' Baker 4-1/2"ZXP Packer 5 6,725' CIBP ics g i 6 7,680' 50' Cement Plug X 2 7 7,730' CIBP 3 8 9,643' 57' Cement Plug Radialcut @ 3,302' SW 9 9,700' CIBP 10 10,580' Weatherford Retrievable BP Radialcut @ 3,617' II =B50 11 10,618' Weatherford Retrievable BP Radialcut @ 3,994' mil -- 12 10,770' CIBP IIPERFORATION DETAIL Radiaicut @5,700 ', Zone Top(MD) Btm(MD) Length Top(TVD) Btm(TVD) Size SPF Perf Date Sqz Date WA3,508' 3,526' 18' 2,264' 2,271' 2.5" 6 4/13/2013 4 3,543' 3,572' 29' 2,278' 2,290' 2.5" 6 4/13/2013 B50 3,599' 3,613' 14' 2,301' 2,307' 2.5" 6 4/13/2013 t, ; , , 3,683' 3,706' 23' 2,335' 2,345' 2.5" 6 4/13/2013 7;4 ISOLATED PERFORATIONS T1 6,751' 6,756' 5 4,044' 4,048' 3-3/8" 6 12/11/09 TOC @6,700%This is , 25,PI� T2 7,766' 7,786' 20' 4,962' 4,980' 3-3/8" 6 12/3/04 4/12/06 5 T2 7,786' 7,826' 40' 4,980' 5,016' 3-3/8" 6 12/5/04 4/12/06 Ti T3 9,727' 9,729' 2' 6,750' 6,752' 3-3/8" Sqz Gun 4/21/06 4/24/06 T3 9,727' 9,745' 20' 6,750' 6,767' 3-3/8" 6 11/29/04 4/24/06 6 T3 9,729' 9,745' 16' 6,752' 6,767' 3-3/8" 6 5/6/06 y7 T3 9,745' 9,747' 2' 6,767 6,768 3-3/8" Sqz Gun 4/21/06 4/24/06 T3 10,009' 10,031' 22' 7,006' 7,026' 3-3/8" 6 11/17/04 T3 10,064' 10,099' 35' 7,056' 7,088' 3-3/8" 6 11/17/04 T3 10,099' 10,140' 41' 7,088' 7,125' 3-3/8" 6 11/16/04 T3 10,161' 10,181' 20' 7,145' 7,163' 3-3/8" 6 11/16/04 T3 10,242' 10,302' 60' 7,219' 7,273' 3-3/8" 6 11/3/04 T3 10,302' 10,330' 28' 7,273' 7,299' 3-3/8" 6 11/2/04 T3 10,671' 10,707' 36' 7,612' 7,646' 3-3/8" 6 Frac'd,#37K 20/40 sand T3 10,796' _ 10,854' 58' 7,728' 7,782' 3-3/8" 6 I OPEN HOLE/CEMENT DETAIL �4tt, , 9 9 5/8 floats held. Cleaned fill to 10.:,O0 c1M _ 8-1/2" hole, cmt w/250 sks(110 bbls)12.5 ppg class G lead,followed by 162 sks(34 bbls) 5'5,7006 7 15.8 ppg class G tail. 20 bbls of cmt to surface. Bumped plug,floats held. 10 7"hole,cmt w/724 sks(215 bbls)13.5 ppg.Displaced w/168 bbls of 6%KCL water.Bumped 11 4-1/2" plug w/3,230 psi. Applied pressure to 3,700 psi to set midstring packer&to 4,500 psi to ensure set. No cmt to surface. 12 MISC. INFORMATION INCLINATION DETAIL Weatherford Retrievable Bridge Plugs: KOP: 250'MD/TVD Top of Float Collar@ -10,580'MD(P-Test to 2000 psi surface Build: 4.02/100' 10,970'ND/7,894 TVD Hold: 63.5°- from 2,200'-5,000'MD 44/2' I w/KCL water) -10,618'MD(would not test) Drop: 2.49/100'to 259 from 5,000'-7,206'MD TD=11,094' PBTD=7,680' Inclination at TD: 209 Both plugs rated to 7500 psi above& MAX HOLE ANGLE=63.5°i 2,200 10,000 psi from below. Azimuth: 3312 to 5,500'MD&3102 to TD 4-1/2" Short Joint Locations: @ 6,904'-6,925'MD @ 8,536'-8,557'MD Revised By:TDF 5/13/2013 • 0 II Well Prognosis Well: SD-2 iiaeorn Alaska,LL Date: 10/4/2013 Well Name: Ninilchik Unit S Dionne 2 API Number: 50-133-20541-00-00 Current Status: SI Gas completion Leg: N/A Estimated Start Date: October 11, 2013 Rig: Cloverleaf Rig 4 Reg.Approval Req'd? 10-403 Date Reg.Approval Rec'vd: Regulatory Contact: Tom Fouts 777-8398 Permit to Drill Number: 204-107 First Call Engineer: Mike Dunn (907) 777-8382 (0) (907)351-4191 (M) Second Call Engineer: Chris Kanyer (907)777-8377 (0) (907) 250-0374 (M) AFE Number: Current Bottom Hole Pressure: —945 psi Calculated from long term shut in Maximum Expected BHP: —945 psi @ 2,181' TVD based on a 0.443 psi/ft fluid gradient Max. Allowable Surface Pressure: —899 psi Brief Well Summary This well was drilled and completed as a gas well in 2004. Several zones produced for short periods but the well did not deliver on its potential. In early 2013 (under Sundry No. 313-058) the zones below 6700' were abandoned with a through-tubing bridge plug. However, a workover rig was unable to fish the old completion from the well. In an attempt to restore some production from the well, an overshot/shoe was stabbed over the old tubing and a packer was run. This was unsuccessful at restoring production to a commercial rate. The intent of this work is to P&A the open perforations and prepare the well for a sidetrack with a drilling rig. Summary Procedure 1. Set TWC. MIRU Cloverleaf Rig. �,� !r 2. Test BOPE to 250psi low/2,500psi high per standard AOGCC procedure. ��1 �'`� 3. Screw into hanger and straight pull shear release the FHL packer at 2,456'. POOH. 4. PU 7"cement retainer RIH and set retainer at 2,440',just above the former packer setting depth of the FHL packer. 5. Mix up cement and place cement below the retainer with volume to cover from perfs to the cement retainer. Pump at matrix rates,do not over displace. Sting out of retainer and place 100' balanced plug (-----61.1top of retainer. POOH. -----> 6. RU E-line and set a CIBP at a depth of 5'above a casing collar at the nearest collar deeper than 2000'. WLOH. 7. Pressure upon casing to 2,500psi for 30 minutes and record with chart recor•er. 8. ND BOP, NU dry hole tree. � t 7 --Wit'-/. 9. RDMO. / Attachments: 1. As-built Well Schematic 2. Proposed Well Schematic 3. BOP Schematic • STATE OF ALASKA ALA. OIL AND GAS CONSERVATION COMMON REPORT OF SUNDRY WELL OPERATIONS 1. Operations Abandon U Repair Well ❑ Plug Perforations u Perforate u • Otner Performed: Alter Casing ❑ Pull Tubing 0 . Stimulate - Frac ❑ Waiver ❑ Time Extension U Change Approved Program ❑ Operat. Shutdown ❑ Stimulate - Other ❑ Re -enter Suspended Well ❑ 2. Operator 4. Well Class Before Work: 5. Permit to Drill Number: Name: Hilcorp Alaska, LLC Development 0 . Exploratory ❑ 204 -107 3. Address: 3800 Centerpoint Drive, Suite 100 Stratigraphic ❑ Service ❑ 6. API Number: Anchorage, Alaska 99503 50- 133 - 20541 -00 7. Property Designation (Lease Number): 8. Well Name and Number: • ADL035924 / ADL0389180 Ninilchik Unit S Dionne 2 9. Logs (List logs and submit electronic and printed data per 20AAC25.071): 10. Field /Pool(s): • N/A Ninilchik Field / SD Beluga Undefined 11. Present Well Condition Summary: 6,700, 7,680 & RECEIV El Total Depth measured 11,094 feet Plugs measured 9,643 feet M true vertical 8,007 feet Junk measured N/A feet 1 1 ' Effective Depth measured 6,700' feet Packer measured 2,456 & 5,733 feet true vertical 4,000 feet true vertical 1,815 & 3,290 feet Casing Length Size MD TVD Burst Collapse Structural ! Conductor 119' 20" 119' 119' 3,060psi 1,500psi Surface 1,927' 9 -5/8" 1,927' 1,576' 6,870psi 4,760psi Intermediate Production 5,942' 7" 5,942' 3,420' 7,240psi 5,410psi Liner 7,806' • 4 -1/2" 11,094 8,007 MAY 7,500psi Perforation depth Measured depth See Attached Schematic SCANNED MA t 1 5 2013 t/ 9 13 True Vertical depth See Attached Schematic Tubing (size, grade, measured and true vertical depth) 3.5" 9.2# / L -80 3,291' 2,178' FHL Packer 2,456(MD)/1,815(TVD) Packers and SSSV (type, measured and true vertical depth) ZXP Packer TE -5 SSSV V- 5, #33(MD) /5 412(MD)/411(TVD) 12. Stimulation or cement squeeze summary: N/A Intervals treated (measured): N/A Treatment descriptions including volumes used and final pressure: N/A ;3. Representative Daily Average Production or Injection Data 1 Oil -Bbl Gas -Mcf Water -Bbl Casing Pressure Tubing Pressure Prior to well operation: 0 0 0 0 300psi I Subsequent to operation: 0 0 0 0 809psi 14. Attachments: 15. Well Class after work: Copies of Logs and Surveys Run N/A Exploratory El Development Service Ill Stratigraphic ❑ 16. Well Status after work: GSTOR Oil Gas WDSPL ❑ Daily Report of Well Operations / ❑ El WINJ ❑ WAG ❑ GINJ ❑ SUSP Ill SPLUG El I 17. I hereby certify that the foregoing is true and correct to the best of my knowledge. Sundry Number or N/A if C.O. Exempt: 313 -058 Contact Chris Kanyer Email ckanyer@hilcorp.com Printed Name Chris Kanyer Title Reservoir Engineer Signature • i4. ' a Phone 907 - 777 -8377 Date 5/13/2013 Form 10 -404 Revised 10/2012 RBDMS MAY 14 201§ s �S Submit Original Only 11 • • Ninilchik Field Well #: Susan Dionne 02 SCHEMATIC Last Completed: 12/6/2004 Hilcorp Alaska, LLC PTD: 204 -107 CASING DETAIL Size Type Wt/ Grade/ Conn ID Top Btm KB= 156'(21' AGL) 20" Conductor 133 # / K -55 / PE 18.73 Surf 119' j E 9-5/8" Surface 47#/ L -80 / Mod Butt 8.681 Surf 1,927' i. Y ; , 7" Intermediate 26# / L-80 / Mod Butt 6.276 Surf 5,942' , a 4 -1/2" Production 12.6 # / L -80 / Mod Butt 3.958 3,288' 11,094' TUBING DETAIL zd 3 -1/2" Tubing 9.3# / L -80 / EUE 2.990 Surf I 3,270' k h. 4 t la * JEWELRY DETAIL No Depth Length OD ID Item ' 1 la 420' 7.86 5.625 2.812 TE -5 SSSV 2.812 Nipple Profile 1 2,456' 7.35 5.980 2.875 Model FHL Packer Size 4782 II" y 2 2,527' 1.15 4.5 2.812 "XN" Nipple 95/8 "11 t; 3 3,288' 3.02 5.750 5.125 Cut Lip Shoe ;, 4 5,733' Baker 4 -1/2" ZXP Packer * ✓ 5 6,725' CIBP ' 6 7,680' 50' Cement Plug 7 7,730' CIBP i , 8 9,643' 57' Cement Plug gm Radalcut @3,307 9 9,700' CIBP i 10 10,580' Weatherford Retrievable BP Radialcut @3,617' 11E1 . B50 11 10,618' Weatherford Retrievable BP Radialcut @3,994 12 10,770' CIBP PERFORATION DETAIL Radalcut @5,700' , ' Zone Top (MD) Btm (MD) Length Top (TVD) Btm (TVD) Size SPF Perf Date Sqz Date . {, G 0 3,508' 3,526' 18' 2,264' 2,271' 2.5" 6 4/13/2013 4 i Or "I .1 B50 3,543' 3,572' 29' 2,278' 2,290' 2.5" 6 4/13/2013 , • . `; 3,599' 3,613' 14' 2,301' 2,307' 2.5" 6 4/13/2013 7 re 3,683' 3,706' 23' 2,335' 2,345' 2.5" 6 4/13/2013 T . ISOLATED PERFORATIONS TOC @6,700. Thisisa T1 6,751' 6,756' 5 4,044' 4,048' 3 -3/8" 6 12/11/09 f., T2 7,766' 7,786' 20' 4,962' 4,980' 3 -3/8" 6 12/3/04 4/12/06 25 plug 1 .z i5 CIO' T2 7,786' 7,826' 40' 4,980' 5,016' 3 -3/8" 6 12/5/04 4/12/06 Ti T3 9,727' 9,729' 2' 6,750' 6,752' 3 -3/8" Sqz Gun 4/21/06 4/24/06 < + 6 T3 9,727' 9,745' 20' 6,750' 6,767' 3 -3/8" 6 11/29/04 4/24/06 « fr T3 9,729' 9,745' 16' 6,752' 6,767' 3 -3/8" 6 5/6/06 ttt T3 9,745' 9,747' 2' 6,767' 6,768 3 -3/8" Sqz Gun 4/21/06 4/24/06 T3 10,009' 10,031' 22' 7,006' 7,026' 3-3/8" 6 11/17/04 +' r r ' p ' T3 10,064' 10,099' 35' 7,056' 7,088' 3 3/8" 6 11/17/04 1 ! T3 10,099' 10,140' 41' 7,088' 7,125' 3 3/8" 6 11/16/04 T3 10,161' 10,181' 20' 7,145' 7,163' 3 -3/8" 6 11/16/04 T3 10,242' 10,302' 60' 7,219' 7,273' 3 -3/8" 6 11/3/04 T3 10,302' 10,330' 28' 7,273' 7,299' 3 -3/8" 6 11/2/04 1.. '' T3 10,671' 10,707' 36' 7,612' 7,646' 3 -3/8" 6 Frac'd, #37K 20/40 sand f ' i° T3 10,796' 10,854' 58' 7,728' 7,782' 3 -3/8" 6 4. *' OPEN HOLE / CEMENT DETAIL 8 9 5/8„ 12 -1/4" hole, cmt w/ 420 sks (188 bbls) 12 ppg class G with 40 bbls to surface. Bumped plug, g floats held. Cleaned romlosarcrM 1 Ili ,4 - 7 8 -1/2" hole, cmt w/ 250 sks (110 bbls) 12.5 ppg class G lead, followed by 162 sks (34 bbls) .r __. 15.8 class G tail. 20 bbls of cmt to surface. Bumped plug, floats held. s/s /2aoa I' > uh' . " ppg P P g� 10 4 7" hole, cmt w/ 724 sks (215 bbls)13.5 ppg. Displaced w/ 168 bbls of 6% KCL water. Bumped . 4. 11 4 -1/2 plug w/ 3,230 psi. Applied pressure to 3,700 psi to set midstring packer & to 4,500 psi to ta :ft ensure set. No cmt to surface. ,„ 12 MISC. INFORMATION INCLINATION DETAIL «. Weatherford Retrievable Bridge Plugs: KOP: 250' MD /TVD Top of Float Cellar@ I it - 10 MD (P -Test to 2000 psi surface Build: 4.0 10,970' w ? MD /7,89'1 4-1/2" '. ..t . w /KCL water) Hold: 63.59 from 2,200'-5,000' MD - 10,618' MD (would not test) Drop: 2.42 /100' to 25 from 5,000'- 7,206' MD TD= 11,094' FBTD= 7,680 Both plugs rated to 7500 psi above & Inclination at TD: 20 MAX HOLE ANGLE = 63.5 2,200 10,000 psi from below. Azimuth: 331 to 5,500' MD & 310 to TD 4 -1/2" Short Joint Locations: @ 6,904' - 6,925' MD @ 8,536' - 8,557' MD Revised By: TDF 5/9/2013 • • Hilcorp Alaska LLC Weekly Operations Summary Well Name API Number Well Permit Number Start Date End Date Susan Dionne 02 50- 133 - 20541 -00 204 -107 2/16/13 4/14/13 Daily Operations: 2/13/2013- Wednesday No operations to report. 2/14/2013 - Thursday No operations to report. 2/15/2013 - Friday No operations to report. 2/16/2013 - Saturday Travel to location. Rig up lubricator, pressure test to 250 psi low and 2,500 psi high. TP - 300 psi. RIH with 3.50" bridge plug and one roller boogie and set down at 4,868'. Made several attempts to get down. Angle at this depth is 67 to 74 deg. POOH Saw fluid level at 900'. Added a weight and roller boogie and went thru the high angle fairly well down to 6,725'. Tied into schematic and set CIBP a 6,725'. Pick up 30', go back down and tag plug. POOH. Good set. Blew well down to 0 psi. Monitor well for 30 min. MU and RIH with 3 "x30' bailer loaded with 15.6 ppg cement down to 6,720'. Attempted to dump bail cement. POOH and cement did not dump. Wind and snow blowing to hard to continue operations. Will dump the cement as soon as the weather lets up. Rigged back for standby. 2/17/2013 - Sunday Rig up lubricator. PT to 250 psi low and 2,500 psi high. Tubing had no pressure on it. RIH w/3 "x30' Dump bailer filled with 15.6 ppg cement, tie into schematic and tag at 6,713'. Worked bailer to 6,715'. Sticky picking up out of it. Call Res. Engineer and it was decided to dump 35' of cement to make sure we have 25' of cement on plug (6,725') or fill (6,715'). Dumped bailer and POOH. Good dump. RIH w/3 "x30' Dump bailer filled with 15.6 ppg cement, tie into schematic and dump cement at 6,700'. POOH. Good dump. RIH w/3 "x30' Dump bailer filled with 15.6 ppg cement, tie into schematic and dump cement at 6,688 ". POOH. Good dump. Cement in place at 18:30 hrs. Top of cement will depend if the fill is solid where we tagged. Regardles we will have at least 25' on top of plug or fill. TOC: 6,695' to 6,680'. Rig down lubricator. Clean up area and move to SD -7. Notify AOGCC to witness PT and tag by e -mail. 2/18/2013 - Monday AOGCC waived withnes by e -mail from Jim Regg. Hooked chart recorder up to tubing. Pumped 10 bbls 50/50 water methanol mix down tubing to fluid pack. Drive to swanson to pick up 5,000 psi charts. Pressured tubing up to 2,000 psi with hot oiler. Charted pressure for 1 hr and 15 min. Good test. Bled pressure off tubing. Rigged hot oiler off well. Had to suspend operations due to mechanical problems with the crane. 2/19/2013 - Tuesday Mechanics fixed crane truck. Rig up lubricator, pressure test 250 psi low and 2,500 psi high. Ran in hole with 3.50" Spectra jet cutter and roller bogies and tied into Pollard perf record. Severed 4 -1/2" tubing at 5,700'. POOH. Looks like a good cut. Rig down lubricator and clean up area. 2/20/2013 - Tuesday Rig up lubricator, pressure test 250 psi low and 2,500 psi high. Ran in hole with 3.50" Spectra jet cutter and roller bogies and tied into Pollard perf record. Severed 4 -1/2" tubing at 5700'. POOH. Looks like a good cut. Rig down lubricator and clean up area. • • Hilcorp Alaska LLC Weekly Operations Summary Well Name API Number Well Permit Number Start Date End Date SD -02 50- 133 - 20541 -00 -00 204 -107 2/14/13 Daily Operations: 2/27/2013 - Wednesday No operations to report. 2/28/2013 - Thursday No operations to report. 3/1/2013 - Friday MIRU. ND flowline and tree. NU Bope stack. Set back pressure valve. Run mock bope test. Tested ok. Rigged up floor. Sifn. 3/2/2013 - Saturday Conducted BOPE test with AOGCC witness Bob Noble present. Tested BOPE to 250psi low / 3_ 000psi high, annular to 250psi low / 2,500psi high. Good test. Proceed w/ w /o. Speared 4 -1/2" tbg. Unable to pull free. Worked stuck tbg. Made About one foot. Released spear and layed down. Unable to pump down csg w/ 2,000 psi. Unable to pump down tbg w/ same pressure. Waited on pollard wl. Ru pollard wl. Rih w/ cir charge. Sat down at 2,442'. Shot cir hole at 2,424'. Well started cir 3/3/2013 - Sunday Speared 4 -1/2" tbg. Unable to pull free. Released spear and layed down. Ru pollard wl and wih w/ jet cutter. Made jet cut below injector sub and cir hole. Rd pollard wl. Speared tbg . Worked tbg . Worked cut free. Pooh. recovered 57 jts of 4- 1/2" tbg, two cut pieces of 4 -1/2" tbg , 4 4 -1/2" subs, and cap string. Fished two cap string straps out of BOPE & 4 fell in hole. Tested 2 -7/8" pipe rams for AOGCC. Made up fishing tools. Wih w/ fluted shoe, bjs, 4 dc, ojs and acc jars pu 2 -7/8" sl -h90 tbg. 3/4/2013 - Monday Tagged fill at 2,380'. Washed down to tof at 2,424'. Circulate out. Recovered drilling mud. Dressed top of fish w/ fluted shoe. Unable to latch os. Picked up. Redressed off top of fish down to 2,425'. Unable to latch os. Pooh. Shoe looks like cut grove into top of 4 -1/2" tbg. Wih w/ 6 -1/8" concave mill. Milling on top of fish. 3/5/2013 - Tuesday Milled 2.1' off top of fish. Circulate out. Pooh w/ mill. Sih w/ lip guide os, bjs, 4 dc, ojs, aj and 2 -7/8" ws. Had trouble w/ some of the jts of ws slipping thru elevators. Collars on ws wore out. Waited on new ele and lift subs. Fih. Latched os to fish. Jarred on fish. Unable to brake cir w/ 2,600psi. Waited on pollard wl for 4 hrs. RU pollard. Wih w/ cir charge. Sat down at 1,726'. Unable to work shot thru bad spot. Rd wl. Jarring on fish. Will be jarring at max by crew change. • • 1- Hilcorp Alaska LLC Weekly Operations Summary Well Name API Number Well Permit Number Start Date End Date SD 02 50- 133 - 20541 -00 -00 204 -107 2/14/13 � : 3/6/201 Wednesday Unable to jar fish free. Released OS from fish. Pooh. Ru pollard wl. Uable to get 3.2" o.d. jet cutter inside of fish. Took cutter off and retried . Tried several different ways w/ no success. Rd wl. Wih w/ tapper mill 2" btm and 3 -7/8" top. Dressed inside of fish out. Pooh. Ru pollard wl. Rih w/ 3.2" jet cutter down to 2749' . Unable to make anymore hole. Pooh w/ cutter. Wih w/ 3.7" GR. Unable to get inside of fish. Pooh w/ GR. Had cap strap hung on GR. Wih w/ jet cutter down to 2,749' . Trying to work jet cutter deeper. 3/7/2013 - Thursday Unable to get deeper w/ cutter. Rd wl. Wih w/ same tapper mill and ws. Went thru tof and down to 2,735'. Ru power sub. Tried to cir and pressured up to 2,500 psi and blew seals in. sub. Fixed seals. Motor on power sub broke. replaced motor. Washed and rotated down to 2,750' tm. Hung up three times and had to pull 55k to get free. Pooh. Tapper mill lost 5" of cutright off the top part of mill. Btm part from 2" od to 3" od look new. Have deformed tbg that will let 2" to 3" go thru but not 3 -1/2 ". 3/8/2013 idaY Pooh w/ tapper mill. Had 3 -3/4" concave mill made. Wih w/ mill and tagged at 2,750'. Milled thru bad spot and continue in hole washing and rotating down to 4,043'. Mill started hanging up. co. sooh. 3/9/2013 - Saturday Ran bope test for the AGOCC, witness waived by Jim Regg. Test Annular to 250psi Low/ 2,500psi High, BOPE tested to 250psi Low/ 3,000psi High. Waited on pollard wl for 6 hours. Ru wl. Rih w/ jet cutter and taggede btm at 4,020' wl and made jet cut at 3,994'. Rd wl. Wih w/ same bha. ( os,bjs,dc,ojs, and ajs) 3/10/2013 - Sunday Latched fish w/ os. Ru pollard wl. Unable to get thru fishing tools w/ 1.8 od cir charge ( i.d. of tools2.0) tried different configuration of wl tools w/ no success . Ran 1.7 weight bar by itself and went thru tools and into fish o. k. Jarred on fish while waiting on wl to get new tools. Unable to jar fish free. Jars went out. Released os and pooh. Wih w/ cir charge. Shot holes at 3250' and 2820'. Rd wl. Wih w/ same ; bha. Latched fish w/ os. Broke cir w/ 1,600 psi. Cir well for clean up. 3/11/2013 - Monday Cir clean. Recovered color water. Jarred on fish. Unable to jar free. Pumped pantyhoses to stop up cir holes at 2,820' and cir from 3,250'. Brought well around two caps. Jarred on fish. Ojs started going out. Released os from fish. Pooh. Ru pollard wl. Made raidal cut at 2,844'. Rd wl. Wih w/ same bha w/ new ojs. 3/12/2013 - Tuesday Latched os to fish. Jarred on fish . Unable to jar free. Jars went out. Released os. Pooh. Grapple broke in os. Ru pollard wl. Made raidal cut at 2,560'. Rd wl . Wih w/ os new grapple and same bha. Latched os to fish at 2,430'. Co. Worked and jarred on fish. Pulled free. Pooh. Had no fish and left grapple in hole. Rih w/ 5 -3/4" magnet. Recovered Tots of metal shaving. No grapple. Rih w/ I.B. Showed 4 -1/2" fish. Rd wl. Wih w/ 5 -3/4" os w/ an extenison and same bha. Latched fish w/ os. jarring on fish. • • Hilcorp Alaska LLC Weekly Operations Summary Well Name API Number Well Permit Number Start Date End Date SD - 50- 133 - 20541 -00 -00 204 -107 2/14/13 `* P �� 3/1 2013- Wednesday °° . r 5iF Jarring on fish. Jarred up hole 12'. Jarred free. Pooh. Fish broke and recovered 3' o fish in os WIH w/ 6 1/8" flat btm m Dressing off TOF. 3/14/2013 - Thursday FIH. Dressed off TOF down to 2,441'. CO. POOH. WIH w/ OS and same BHA. Latched fish w/ OS. Spotted NXS - lube around fish. Jarred on fish. 3/15/2013 - Friday Jarred on fish. Unable to jar free. Had change in orders. Released OS from fish. POOH LD BHA and WS. RIH w/ rest of WS in derrick. Pooh LD WS. Installed bowivel donut. ND BOP stack. NU tree. Rigging down rig to move to Susan Dionne #7. Will return to SD -02 when new equipment arrives to remove fish. 3/16/2013 - Saturday i111 No operations to report. 3/17/2013 - Sunday r = No operations to report. 3/18/2013 - Monday No operations to report. 3/19/2013 - Tuesday No operations to report. • • Hilcorp Alaska LLC Weekly Operations Summary Well Name API Number Well Permit Number Start Date End Date SD -02 50- 133 - 20541 -00 -00 204 -107 2/14/13 Daily Operations` 3/20/2013- Wednesday No operations to report. 3/21/2013 - Thursday Move back. Miru . Set back pressure valve. Nd tree. Nu bope stack . Installed new gas buster on rig tank. Got ready for bope test. 3/22/2013 - Friday Performed BOPE test. Tested Annular to 250psi low / 2,500psi high and Rams and valves to 250psi low / 3,000psi high. AOGCC Jim Regg waived witness of test. WIH w/ 5 -3/4" os , 4.5 spiral grapple , pu 3.5" wsp -6 ws. Ru vibration technology. 3/23/2013 - Saturday Latched fish w/ os AT 2,441'. Started vibrating and pumping on fish. Made 4'. Shut down and tighten up stand pipe and connection. Vibrated free. Layed down vibrator. Pooh w/ 9 jts of 4.5" tbg and 2 pieces. Pulled cut from 2,844' out. There was no cut at 2,560' just two holes in pipe. TOF at 2,844'. WIH w/ same bha( os). 3/24/2013 - Sunday Fih w/ os. Unable to latch os to fish. Tried several times. POOH. WIH w/ flatbottom mill. Tagged at 2,764'. Rotated and washed down to TOF at 2,846'. Dressed off TOF 2'. CO. POOH. WIH w/ os. Latched fish. RU vibrator. Started vibrating. 3/25/2013 - Monday Vibrating on fish. unable to vibrate free. RD vibrator. RU polard wl. RIH w/ free point tool. Unable to get past 1,546' w/ tool. RIH w/ ccl on wt bar down to 5,460' and started getting sticky. RIH radial cutter and pumped it down. Made cut at 3,288' (442' below TOF at 2,846' next cut at 3,994'). RD polard wl. Worked fish. RU vibrator. vibrating fish and cut at 3,288'. 3/26 /2013 - Tuesday Vibrated fish 9' out of hole. Shut down to tighten up connextion above ground. Vibrate fish up 23'. Shut down to tighten up again. Quit making hole. Tried pulling from 50k to 130k on fish vib. Worked fish up and down without vibrator w/ no results. Waiting on polard wl. • • Hilcorp Alaska LLC Weekly Operations Summary Well Name API Number Well Permit Number Start Date End Date SD -02 50- 133 - 20541 -00 -00 204 -107 2/14/13 3/27 /2013 - Wednesday 1 " f RU WL truck. RIH w/ radial cutter and had to pump it down. Found TOF higher. Set cutter at 3,047' to cut, had misfire. POOH. Waited on part for cutter. RIH w/ cutter. Made cut at 3,047'. Unable to drop down to check cut. Sat down at cut. RD polard WL. worked and pulled cut free. POOH. Recovered 240' of fish (5jts of 4.5" tbg and two pieces). WIH w/ same BHA w/ new 4.5" spiral grapple. 3/28/2013,- Thursday Washed down to TOF at 3,047' and latched w/ OS. Worked fish. Unable to work free. RU vibrator. Vibe fish up hole. RD vibrator. POOH w/ fish. Recovered fish from cut at 3,288'. 4 jts of 4.5" tbg and two pieces (211'). WIH w/ OS. Tagged mud at 3,050'. Washed down to TOF at 3,288'. Circ clean. 3/29/2013 Friday Circ well clean two cap. Unable to latch OS to fish. Washed off top of fish and tried several times to latch. POOH. WIH w/ 6- 1/8" flatbottom mill. Milled 2' off TOF. CO. POOH. Getting ready for State BOPE test. = 3/30/2013 - Saturday' . Got ready to do State BOPE test and chart recorder malfunctioned. Replaced recorder. Unable to test choke manifold. Leaked. Found manifold w/ old mud and little mud rocks inside of it from well. Washed out and clean manifold. Greased valves on manifold. State postpone test until) 7:00 am on 3- 31 -13. Performed practice BOPE test. Every thing went well. 3/31/2013 Sunday I) Ran AOGCC BOPE test. Tested Annular to 250psi low / 2,500psi high and BOPE to 250psi low/ 3,000psi high. Test witnessed by Jeff Jones State inspector. WIH w/ OS. Latched OS to fish at 3,288'. Started vibrator at 8:00 pm. Vibrated and circ on fish. Made 5'. Bolt broke on wt plate on top side of block. RD vibrator to work on block. 4/1/20 - 1Monday Repaired block. Vibe on fish. Unable to make any hole. Inspected block and derrick. Vibe on fish. Did not make any hole. Inspected derrick and block. RD vibrator. RU Polard WL. RIH w/ CCL down to 5,700'. SIH w/ radial cutter sat down below BOPE. Took off one spring and went to 1,550' and sat down. Unable to pump cutter down pressured up. POOH w/ cutter. Tried to blow OS pack -off w/ 5,000psi. Did not blow. Took top spring off of cutter. Would not go. POOH w/ cutter. WIH w/ circ shot and sat down at 2,950'. Unable to work past spot. Shorten circ shot. Shot hole right below OS at 3,302'. WIH w/ radial cutter. Pumped cutter down and made cut at 3,617'. RD polard WL. Pumped and worked fish. 4 /2 /2013 .. Tuesday ,, Worked and pumped on fish. RU vibrator, vibed and pumped on fish. Unable to work or vibe free. RD vibrator. Worked fish. Unable to work free. RU WL. WIH w/ radial cutter and pumped cutter down from 1,500' to 1,950' unable to get cutter thru OS free fall or pump. POOH. Left bottom centralizer off of cutter in hole. WIH w/ CCL. Found centralizer at 3,460'. WOO new cutter. • • Hilcorp Alaska LLC Weekly Operations Summary Well Name API Number Well Permit Number Start Date End Date SD -02 50- 133 - 20541 -00 -00 204 -107 2/16/13 4/14/13 Daily Operations: 4/3/2013- Wednesday Unable to vib fish free. RD vib. Released OS. Pooh w/ WS LD. WIH w/ 3.5" completion setting . Went over TOF at 3,288' w/ shoe. Waited on polard WL. RU WL. WIH w/ 2.5" od x 30' long dummy gun down to 5,600'. RD WL. POOH w/ 400' of 3.5" tbg. Installed sssv in completion string. Waited on polard. Installed cap string. WIH w/ 400' of 3.5 tbg. Spaced out and land shoe over tof at 3,288'. Tested cap string to 2,500 psi. Tested ok 4/4/2013 - Thursday Recieve orders to change completion settig. POOH. WIH w/ 3.5 " completion setting. Ran cap string. Went over 4.5" TOF at 3,288' w/ shoe and arrow set 1x pkr at 2,445'. Well condition not letting pkr set. POOH. 4/5/2013 - Friday Waited on new completion pkr. WIH w/ 3.5" completion setting w/ cap string. Spaced out and landed shoe over 4.5" tof at 3,291' , x - nipple at 2,527', baker fhl hydr pkr at 2,456', and SSSV at 420'. Dropped ball / bar. Pressured up on tbg and sheared hydr pkr w/ 3,500 psi. Pkr set. Pressure tested Casingg to 1,000 psi. Tested ok. Set back pressure valve. ND BOP's. Nu tree. Started rigging down. 4/6/2013 - Saturday RU WL. Open SSSV. Retrieved bar /ball and catcher out of x- nipple. Ran 2.5" x 30 dummy gun ran down tp 4,300'. Will return to well to perforate in the near future. 4/7/2013 - Sunday No operations to report. 4/8/2013 - Monday No operations to report. 4/9/2013 - Tuesday No operations to report. • P Hilcorp Alaska LLC Weekly Operations Summary Well Name API Number Well Permit Number Start Date End Date SD -02 50- 133 - 20541 -00 -00 204 -107 2/16/13 4/14/13 4/10 013 - '''ednesday hh No activities to report. 4/11/2013 - Thursday No activities to report. 4/12/2013- Friday Spot equipment. Pressure test lubricator to 250 psi low and 2500 psi high. RIH with 2.3 OD GR to 4,350'. POOH. Swabbed the well from 85' down to 2,840'. Rig down lubricator and clean up work area. dG 4/13/2013 - Saturday Mobe equipment from KGF to SD pad. PTW and JSA. Spot equipment, PTW and JSA. Rig up lubricator and pressure test 250psi low and 2,500psi high. Ran CCL /Gamma Ray down to 4,300' and log to surface for tie in log. Sent log to Anchorage Engineers for review. Put 550psi on well. Standby for tie -in log to be sent back. RIH w/2.5 "x29' HC, 6 spf, 60 deg phase perf gun. Tie into Pollard GR /CCL log ddated 4/13/13. Spot gun from 3,543' tp 3,572' per Geological Engineer e-mail dated 4 -13- 13. Fired gun with 480psi on tubing. Went to 482psi and 490psi after 10 min. POOH. All shots fired. 1st gun run. Open swab and tubing psi was down to 230psi. RIH w/2.5 "x18' HC, 6 spf, 60 deg phase perf gun. Tie into Pollard GR /CCL log ddated 4/13/13. Spot gun from 3,508' tp 3,526' per Geological Engineer e-mail dated 4- 13 -13. Fired gun with 230psi on tubing no change. All shots fired. 2d gun run. Open swab and tubing psi was down to 90psi. RIH w/2.5 "x14' HC, 6 spf, 60 deg phase perf gun. Tie into Pollard GR /CCL log ddated 4/13/13. Spot gun from 3,599' tp 3,613' per Geological Engineer e- mail dated 4- 13 -13. Fired gun with 90psi on tubing no change. 3rd gun run. All shots fired. Open swab and tubing psi was up to 540psi. RIH w/2.5 "x23' HC, 6 spf, 60 deg phase perf gun. Tie into Pollard GR /CCL log ddated 4/13/13. Spot gun from 3,683' to 3,706' per Geological Engineer e-mail dated 4- 13 -13. Fired gun with 540psi on tubing no change. 4th gun run. All shots fired. Rig down lubricator and turn well back over to Field. 4/14/2013 - Sunday PTW and JSA. PT lubricator to 250psi low and 2,500psi high. Tubing pressure 350psi. Blow well down to 0 psi in 10 min. RIH with swab cups and tag fluid level at 625'. Swab well down to 1,075' in 9 runs. Dropped tw soap sticks on 11 run. Water was coming in about as fast as we swab it out. Dropped 2 more soap sticks on run 25. Every run had positive pressure on it except the last 4 runs we made after soap stick drop. They brought alot of water and well went on a vac after each last 4 runs. Fluid level wasn't dropping like it should. Made 29 runs and got sample to get checked. Swab out approx 85 bbls. Final FL was 1,185'. Will send swab sheet out also. Rig down lubricator and secure well. 4/15/2013 Monday , Olri ' No operations to report. 4/16/2013 - Tuesday No operations to report. y • Page 1 of 1 Schwartz, Guy L (DOA) From: Schwartz, Guy L (DOA) 02 0 ` t 07 Sent: Friday, February 15, 2013 10:31 AM To: 'Tom Fouts' Cc: Chris Kanyer; Clint Chanley; Larry Greenstein; Regg, James B (DOA) Subject: RESusan Dionne 02 Sundry # 313 -058& Susan Dionne 07 Sundry# 313 -057 Tom, I did not catch that in reviewing the sundry. SD -7 has a ScSSSV currently and SD -02 doesn't. Requirement for ScSSSV is based on the wells proximity to public roads and waterways etc. per 20 AAC 25.265 (d)(2). I am assuming the wellheads already has a SVS system. Please provide me with some justification based on that regulation. ( maps and Arial photos etc ) Please also send me diagrams of the current production tree and SVS systems. Guy Schwartz SCp►NN�r APR 0 9 2013 Senior Petroleum Engineer AOGCC 793 -1226 (office) 444 -3433 (cell) From: Tom Fouts [mailto:tfouts @hilcorp.com] Sent: Friday, February 15, 2013 9:21 AM To: Schwartz, Guy L (DOA) Cc: Chris Kanyer; Clint Chanley; Larry Greenstein Subject: Susan Dionne 02 Sundry # 313 -058 & Susan Dionne 07 Sundry# 313 -057 Guy, I am contacting you clarify that both of the approved sundries for SD 02 and 07 do not include the installation of a SSSV. This email is to request a waiver/ exemption for the installation of a SSSV for these wells. In the future we will include this type of request as a cover letter to the sundry to provide transparency. Sincerely, Tom Fouts 1 Ops /Reg Tech Hilcorp Alaska, LLC tfouts @hilcoip.com Direct: (907) 777 -8398 Mobile: (907) 351 -5749 2/19/2013 • Ninilchik Field II �� Well #: Susan Dionne 02 � - PROPOSED Last Completed: 12 /6/2004 xirco Alaska, PTD_204107 CASING DETAIL KB= 156'((21' AGL) Size Type Wt/ Grade/ Conn ID Top Btm 20" Conductor 133# / K -55 / PE 18.73 Surf 119' 9-5/8" Surface 47# / L -80 / Mod Butt 8.681 Surf 1,927' 7" Intermediate 26# / L -80 / Mod Butt 6.276 Surf 5,942' 4 -1/2" Production 12.6# / L -80 / Mod Butt 3.958 Surf ±3,475' AT JEWELRY DETAIL No Depth Length OD ID Item sss\, is la ±300' SSSV 1 ±2,500' Retrievable Packer 2 ±3,445' "X" Profile Nipple 3 ±3,475' WLEG 9-s/8-4 1 4 5,733' Baker 4 -1/2" ZXP Packer 5 ±6,725' CIBP 6 7,680' 50' Cement Plug 7 7,730' CIBP 1 8 9,643' 57' Cement Plug X 2 9 9,700' CIBP 3 10 10,580' Weatherford Retrievable BP X850 11 10,618' Weatherford Retrievable BP 12 10,770' CIBP PERFORATION DETAIL Zone Top (MD) Btm (MD) Length Top (TVD) Btm (TVD) Size SPF Perf Date Sqz Date T B50 ±3,513' ±3,531' 18 ±2,266' ±2,T Future 4 4 B50 ±3,548' ±3,577' 29 ±2,280' ±:' Future ISOLATED PERFORATIONS Ti r 77 6,751' 6,756' 5 4,044' 4,048' 3 -3/8" 6 12/11/09 T2 7,766' 7,786' 20' 4,962' 4,980' 3 -3/8" 6 12/3/04 4/12/06 �C' , T2 7,786' 7,826' 40' 4,980' 5,016' 3 -3/8" 6 12/5/04 4/12/06 roc @±-6,7ar. This isa - T3 9,727' 9,729' 2' 6,750' 6,752' 3 -3/8" Sqz Gun 4/21/06 4/24/06 25' dg T3 9,727' 9,745' 20' 6,750' 6,767' 3 -3/8" 6 11/29/04 4/24/06 5 T3 9,729' 9,745' 16' 6,752' 6,767' 3 -3/8" 6 5/6/06 Ti T3 9,745' 9,747' 2' 6,767' 6,768 3 -3/8" Sqz Gun 4/21/06 4/24/06 6 T3 10,009' 10,031' 22' 7,006' 7,026' 3 -3/8" 6 11/17/04 T3 10,064' 10,099' 35' 7,056' 7,088' 3 -3/8" 6 11/17/04 T3 10,099' 10,140' 41' 7,088' 7,125' 3 -3/8" 6 11/16/04 T3 10,161' 10,181' 20' 7,145' 7,163' 3 -3/8" 6 11/16/04 T3 10,242' 10,302' 60' 7,219' 7,273' 3 -3/8" 6 11/3/04 T3 10,302' 10,330' 28' 7,273' 7,299' 3 -3/8" 6 11/2/04 T3 10,671' 10,707' 36' 7,612' 7,646' 3 -3/8" 6 Frac'd, #37K 20/40 sand T3 10,796' 10,854' 58' 7,728' 7,782' 3 -3/8" 6 OPEN HOLE / CEMENT DETAIL 12 -1/4" hole, cmt w/ 420 sks (188 bbls) 12 ppg class G with 40 bbls to surface. Bumped plug, 9-5/8" floats held. 8 7 „ 8 -1/2" hole, cmt w/ 250 sks (110 bbls) 12.5 ppg class G lead, followed by 162 sks (34 bbls) 15,8 ppg class G tail. 20 bbls of cmt to surface. Bumped plug, floats held. Cleaned fill mi0,50J CTM 7" hole, cmt w/ 724 sks (215 bbls)13.5 ppg. Displaced w/ 168 bbls of 6% KCL water. Bumped 5/5/2006 plug w/ 3,230 psi. Applied pressure to 3,700 psi to set midstring packer & to 4,500 psi to (R 10 4 -1/2" ensure set. No cmt to surface. INCLINATION DETAIL MISC. INFORMATION KOP: 250' MD/TVD Weatherford Retrievable Bridge Plugs: • - • t2 Build: 4.0 - 10,580' MD (P -Test to 2000 psi surface Hold: 63.5 from 2,200'- 5,000' MD ' w/KCL water) Top of Font Collar . • , Drop: 2.4 to 25 from 5,000'- 7,206' MD - 10,618' MD (would not test) • MAT MD/ T89tlTVD Inclination at TD: 20 4-3./2"'" � ,• Both plugs rated to 7500 psi above & Azimuth: 331 to 5,500' MD & 310 to TD 10,000 psi from below. TD = 11,094' F'BTD =7,680' MAX HOLE ANGLE = 635°(x72200 4-1/2" Short Joint Locations: @ 6,904' - 6,925' MD @ 8,536' - 8,557' MD Revised By: TDF 2/18/2013 ■ II • Ninilchik Unit SD #2 Proposed wellhead narmi. .AIN■kw. ILIA: 02/19/2013 Ninilchik Unit Tubing hanger, MB -235, 11 X Susan Dionne #2 4.909 MCA lift X 4' /z IBT susp, 20 X 9 5/8 X 7 X 4 1/2 w/ 4" Type H BPV profile, 2- '/ continuous control lines 6.5" Extended neck PiD — Tree cap, Otis, 4 1/16 5M FE X 6 Otis Quick Union N MI iliMAIIIINI MI °' 4,\ \(C\ p i ll IIIII Valve, Swab, J a�� � h � � � � a \��' y \` � VG -M, 4 1/16 5M FE, HWO, go., � �' . J'7' �,.) �Q C l erO r timmigi DD trim rn 11 1.11 J J c \r 11 1) 11106, r i Tee, stdd, 4 1/16 5M X `n J 1 ,1 11 ' 0 3 1/8 5M � � '' s ; Imi *: Valve, upper master, VG -M, 4 1/16 5M FE, HWO, ' 7 All DD trim 0 U mum on DSA, 4 1/16 10M X 4 1/8 5M r ill 14 lei 0 Valve, master, FIP, V 11 ... - 0 4 1/16 10M FE, HWO, DD • trim U Adapter, Vetco, 11 5M stdd X 11 MI 1E1 4 1/16 10M stdd top, prepped f/ 6.5" extended . Ste neck hanger 5 � G ow •! _ Mandrel tubing hanger '""0-11-11.11.°' ��' instead of slips, post Multibowl, Vetco MB -150, , �r�', - workover addition 11 3M stdd bottom X ��`' 115M FE top, w/ ■ 9 I am 2- 2 1/16 5M SSO, 1- control ■' _ line exit 1 E: =il _ 1 40 , � , i , -1•- iM, 7 I_ Starting head, ' ' - ii Vetco MB -150, ! _ _ F. 11 3M X 9 5/8 VG -Loc .111.1 1 I 111111111 bottom, w/ 2- 2" LPO II ■1 / /H► i r .• 20" 9 5/8" 4.5 "i S� be- . 2 it� . S C- S w;�( • w �� I % %r� s 9 THE STATE Alaska Oil and Gas ofALl 1sKA Conservation Commission GOVERNOR SEAN PARNELL 333 West Seventh Avenue Anchorage, Alaska 99501 -3572 ALAS Main: 907.279.1433 Fax: 907.276.7542 Shane Bennett Operations Engineer / Hilcorp Alaska, LLC a 0 9- t 3800 Centerpoint Drive Anchorage, AK 99503 Re: Ninilchik Field, Beluga Undefined Pool, S Dionne 2 Sundry Number: 313 -058 SCANNED MAR 13 2013 Dear Mr. Bennett: 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, Cat y P. F I erster Chair DATED this I Jday of February, 2013. Encl. RECEIVED STATE OF ALASKA �j �g 0 5 2013 ALASKA OIL AND GAS CONSERVATION COMMISSION S i � APPLICATION FOR SUNDRY APPROVALS ` f"�(�f'�(� 20 AAC 25.280 v �+ `� `� 1 1. Type of Request: Abandon ❑ Plug for Redrill ❑ Perforate New Pool ❑ Repair Well ❑ Change Approved Program ❑ Suspend ❑ Plug Perforations 0 • Perforate 0 • Pull Tubing 19 Time Extension ❑ Operations Shutdown ❑ Re -enter Susp. Well ❑ Stimulate ❑ Alter Casing ❑ I Other. Complete El - 2. Operator Name: 4. Current Well Class: 5. Permit to Drill Number: Hilcorp Alaska, LLC Exploratory ❑ Development el • 204 -107 • 3. Address: Stratigraphic ❑ Service ❑ 6. API Number. 3800 Centerpoint Drive, Anchorage AK, 99503 50- 133 - 20541 -00-00 - 1 7. If perforating: 8. Well Name and Number. What Regulation or Conservation Order governs well spacing in this pool? _'1 S_) C Al .- . i � Will planned perforations require a spacing exception? Yes ❑ No 0 • Ninilchik Unit S Dionne 2 • 9. Property Designation (Lease Number): 10. Field /Pool(s): n ) "/ c p� t., / ADL035924/ ADL0389180 Ninilchik Field / SD k nde#ii1 d Gas Pool /' r . 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): 11,094. 8,007 • 7,680 4,884 7,680' & 9,643' N/A Casing Length Size MD TVD Burst Collapse Structural Conductor 119' 20" 119' 119' 3,060psi 1,500psi Surface 1,927 9 -5/8" 1,927' 1,576' 6,870psi 4,760psi Intermediate 5,942' 7" 5,942' 3,420' 7,240psi 5,410psi I Production 5,361' 4 -1/2" 11,094' 8,007 8,430psi 7,500psi Liner Perforation Depth MD (ft): Perforation Depth TVD (ft): Tubing Size: Tubing Grade: Tubing MD (ft): 6,751 to 6,756 4,044 to 4,048 4 -1/2" 12.6# / L -80 5,733' Packers and SSSV Type: Packers and SSSV MD (ft) and TVD (ft): Baker 4 -1/2" ZXP Packer & N/A 5,733'(MD) / 3,290'(TVD) & N/A 12. Attachments: Description Summary of Proposal 0 13. Well Class after proposed work: Detailed Operations Program ❑ BOP Sketch Q Exploratory ❑ Stratigraphic ❑ Development Q - Service ❑ 14. Estimated Date for 15. Well Status after proposed work: Commencing Operations: 2/18/2013 Oil ❑ Gas 0 • WDSPL ❑ Suspended ❑ 16. Verbal Approval: Date: N/A WINJ ❑ GINJ ❑ WAG ❑ Abandoned ❑ [Commission Representative: N/A GSTOR ❑ SPLUG ❑ 17. I hereby certify that the foregoing is true and correct to the best of my knowledge. Contact Chris Myers , • Email cm ers hilcor .com Printed Name ane Be, ett Title Operations Engineer i Signature ft ',iv, 2 Phone 907 - 777 -8425 Date 2/4/2013 COMMISSION USE ONLY t condtions of approval: Notify Commission so that a representative may witness Sundry Number: I Plug Integrity ❑ BOP Test Mechanical Integrity Test ❑ Location Clearance ❑ Other: L /� / 44" g; j ot�r . °'t S Ga ,1 �1 �' ° `ti S er� T 1.S f-�.li7ZJ,tr, I A S / /2 Sr % D' 1 'l. Acct Spacing Exception Required? Yes ❑ No LYE Subsequent Form Required: /Q -- y� RBDMS FEB 1 3 2013 / APPROVED BY Approved by: COMMISSIONER THE COMMISSION Date: �_.."3 -`3 ®F rr 1 03 N A Submit Form and p lq�pl�) Approved application is valid for 12 months from the date of approval. Attachments i licate ,,,L_ 2.1.1'S Well Prognosis Well: SD -2 Hilcorp Alaska, LLi Date: 2/4/2013 Well Name: Ninilchik Unit S Dionne 2 API Number: 50- 133 - 20541 -00 -00 Current Status: SI Gas completion Leg: N/A Estimated Start Date: February 18, 2013 - Rig: Cloverleaf Rig 4 Reg. Approval Req'd? 10 -403 Date Reg. Approval Rec'vd: Regulatory Contact: Tom Fouts 777 -8398 Permit to Drill Number: 204 -107 First Call Engineer: Shane Bennett (907) 777 -8425 (0) (325) 203 -7487 (M) Second Call Engineer: Chris Myers (907) 777 -8333 (0) (907) 398 -9955 (M) AFE Number: Current Bottom Hole Pressure: —400 psi Calculated from long term shut in Maximum Expected BHP: —945 psi @ 2,181' TVD Calculated from long term shut in Max. Allowable Surface Pressure: —899 psi (Based on 0.021 psi /ft gas gradient) . Brief Well Summary This well was drilled and completed as a gas well in 2004. The 2004 well completion operations included perforating several Tyonek intervals, including the frac of one lower Tyonek sand. The well remained shut in until 2006 when cement squeeze work was completed and perforations added, resulting in no flow. In 2009 the open perforations were isolated with a BP and cement and one additional Tyonek sand was perforated and tested, without success. Well has remained shut. The proposed completion plan isolating the Tyonek perfs (6,751'- 6,756') with a bridge plug in the liner and dump bailing a 25 ft of cement on top of the plug. After pressure integrity of plug back isolation of the Tyonek intervals, the 4.5" tubing will then be cut and pulled from above the ZXP liner top packer. A new 4.5" tubing & packer completion will be run to test the shallower Beluga intervals. . Summary Procedure 1. RU E -line and test lubricator to 250psi low /2,500psi. 2. RIH and set bridge plug at +/- 6,725' to isolate the oponek perfs (6,751' top of perfs). Dump bail 25' of cement on top of plug and pressure test to j.,Se9'psi. 3. RIH and tag TOC at +/- 6,700'. L--3 4. RIH and cut 4.5" tubing at +1- 5,700'. 5. RD Eline. 6. RU Cloverleaf Rig 4 4 ._ .crow 7. Set two way check, ND Tree. 8. NU BOP and pressure test BOP to 250 psi low /3,000 psi high. (Aft...4. 4t> Z sOOr 4, 9. POOH with 4.5" tubing from 5,700'.. 10. RU E -line and RIH GR /CBL, from 5,700' to 500'. 11. RD E -line. 12. RIH with x nipple, retrievable packer at +/- 2,500', tubing tail to +/- 3,475'. 13. Land tubing in hanger and set retrievable cke r s 1 A 4a 2 � d . 14. ND BOP and NU tree. 15. RU E -line and test lubricator to 250psi low /2,500psi. 16. Perforate the Beluga 50 sand at +/- 3,513' to +/- 3,531' and +/- 3,548' to +/- 3,577'. 17. RD Eline. Well Prognosis Well: SD -2 Hilcory Alaska, LL) Date: 2/4/2013 18. Turn well over to production & flow test well. Attachments: 1. As -built Well Schematic 2. Proposed Well Schematic 3. BOP Schematic Ninilchik Field Well #: Susan Dionne 02 . in SCHEMATIC Last Completed: 12/6/2004 tiilcorp Alaska, LLC PTD: 204 -107 CASING DETAIL KB= 156'((21' AGL) Size Type Wt /Grade /Conn ID Top Btm 20" Conductor 133# / K -55 / PE 18.73 Surf 119' C:; � 9 -5/8" Surface 47# / L -80 / Mod Butt 8.681 Surf 1,927' w F* 7" Intermediate 26# / L -80 / Mod Butt 6.276 Surf 5,942' ,1 4 -1/2" Production 12.6# / L -80 / Mod Butt 3.958 Surf 11,094' 20" t 0, JEWELRY DETAIL M I., . No Depth Length ID OD Item ,) «' 1 2,400' 3.858 0.25" Chemical Injection Nipple w/ Dbl. check Valve and Rupture disks 2 5,733' Baker 4 -1/2" ZXP Packer •a 3 7,680' 50' Cement Plug t 4 7,730' CIBP 9 t, 57' Cement Plug 5 9 643' S g ,; 6 9,700' CIBP 1 v� 7 10,580' Weatherford Retrievable BP 8 10,618' Weatherford Retrievable BP k* .' 9 10,770' CIBP 7x -1/z ^ annulus ,. i PERFORATION DETAIL filled w/ 9.7 ppg mud , i,„ a r , i Zone Top (MD) Btm (MD) Length Top (TVD) Btm (TVD) Size SPF Perf Date Sqz Date T1 6,751' 6,756' . 5 4,044' 4,048' 3-3/8" 6 12/11/09 ISOLATED PERFORATIONS ' T2 7,766' 7,786' • 20' 4,962' 4,980' 3 -3/8" 6 12/3/04 4/12/06 _ T2 7,786' 7,826' • 40' 4,980' 5,016' 3 -3/8" 6 12/5/04 4/12/06 i 'It t ; 2 T3 9,727' 9,729' 2' 6,750' 6,752' 3 -3/8" Sqz Gun 4/21/06 4/24/06 A; LE : T3 9,727' 9,745' • 20' 6,750' 6,767' 3 -3/8" 6 11/29/04 4/24/06 ! . 2 T3 9,729' 9,745' 16' 6,752' 6,767' 3 -3/8" 6 5/6/06 T3 9,745' 9,747' 2' 6,767' 6,768 3 -3/8" Sqz Gun 4/21/06 4/24/06 a t T3 10,009' 10,031' 22' 7,006' 7,026' 3 -3/8" 6 11/17/04 T3 10,064' 10,099' 35' 7,056' 7,088' 3 -3/8" 6 11/17/04 '' T3 10,099' 10,140' 41' 7,088' 7,125' 3 -3/8" 6 11/16/04 0 '' a T3 10,161' 10,181' • 20' 7,145' 7,163' 3 -3/8" 6 11/16/04 .:. Ti T3 10,242' 10,302' • 60' 7,219' 7,273' 3 -3/8" 6 11/3/04 c T3 10,302' 10,330' • 28' 7,273' 7,299' 3 -3/8" 6 11/2/04 f, 7 4 ' 3 T3 10,671' 10,707' 36' 7,612' 7,646' 3 -3/8" 6 Frac'd, #37K 20/40 sand T3 10,796' 10,854' • 58' 7,728' 7,782' 3 -3/8" 6 - ' OPEN HOLE / CEMENT DETAIL 12 -1/4" hole, cmt w/ 420 sks (188 bbls) 12 ppg class G with 40 bbls to surface. Bumped plug, "�• 7-' 9 floats held. 8 1/2" hole, cmt w/ 250 sks (110 bbls) 12.5 ppg class G lead, followed by 162 sks (34 bbls) .` 7 15.8 ppg class G tail. 20 bbls of cmt to surface. Bumped plug, floats held. ' Po 7" hole, cmt w/ 724 sks (215 bbls)13.5 ppg. Displaced w/ 168 bbls of 6% KCL water. Bumped plug w/ 3,230 psi. Applied pressure to 3,700 psi to set midstring packer & to 4,500 psi to e ,., t 4-1/2 ensure set. No cmt to surface. r 6 Cleaned fill to 10,500' CfM ; lir - 5/5/2006 INCLINATION DETAIL MISC. INFORMATION q f , KOP: 250' MD /TVD Weatherford Retrievable Bridge Plugs: t. !�'$ Build: 4.0 /100' - 10,580' MD (P -Test to 2000 psi surface l l _ Hold: 63.5 from 2,200 5,000' MD w /KCL water) *Ili' Drop: 2.4 to 25 from 5,000'- 7,206' MD - 10,618' MD (would not test) +t 9 Inclination at TD: 20 Both plugs rated to 7500 psi above & A Azimuth: 331 to 5,500' MD & 310 to TD 10,000 psi from below. Top of Float Collar@ I. ' III 4 -1/2" Short Joint Locations: 10,970' MD/ 7,890 TVD 1y ;: @ 6,904' 6,925' MD 4- 1/2 " . { @ 8,536' - 8,557' MD TD = 11,094' PBTD = 7,680' MAX HOLE ANGLE = 63.5 2,200 Revised By: TDF 1 -17 -2013 . H Ninilchik Field Well #: Susan Dionne 02 . PROPOSED Last Completed: 12/6/2004 HJilcorp Alaska, LLC PTD: 204 -107 CASING DETAIL KB= 156'((21' AGL) Size Type Wt/ Grade/ Conn ID Top Btm 20" Conductor 133# / K -55 / PE 18.73 Surf 119' 9 -5/8" Surface 47# / L -80 / Mod Butt 8.681 Surf 1,927' ` ' 7" Intermediate 26# / L -80 / Mod Butt 6.276 Surf 5,942' t 4 -1/2" Production 12.6# / L -80 / Mod Butt 3.958 Surf ±3,475' za 1 t1 I JEWELRY DETAIL y No Depth Length OD ID Item :« k e * 1 ±2,500' Retrievable Packer 2 ±3,445' "X" Profile Nipple q 3 ±3,475' WLEG ci 4 5,733' Baker 4 -1/2" ZXP Packer a g_s /g -� 5 ±6,725' CIBP 6 7,680' 50 Cement Plug « '„ 7 7,730' CIBP 8 9,643' 57' Cement Plug °, o' 1 9 9,700' CIBP { " 2 10 10,580' Weatherford Retrievable BP 3 4 11 10,618' Weatherford Retrievable BP B50 ?Qrk) 12 10,770' CIBP PERFORATION DETAIL Zone Top (MD) Btm (MD) Length Top (TVD) Btm (TVD) Size SPF Perf Date Sqz Date . = r B50 ±3,513' ±3,531' • 18 ±2,266' ±2,273' Future '' 4 B50 ±3,548' ±3,577' 29 ±2,280' ±2,292' Future ; L■ .I .w ISOLATED PERFORATIONS ' i * t T1 6,751' 6,756' 5 4,044' 4,048' 3 -3/8" 6 12/11/09 « T2 7,766' 7,786' 20' 4,962' 4,980' 3 -3/8" 6 12/3/04 4/12/06 7 e t T2 7,786' 7,826' 40' 4,980' 5,016' 3 -3/8" 6 12/5/04 4/12/06 P . TOC @ ±6,704. This isa ' - a; T3 9,727' 9,729' 2' 6,750' 6,752' 3 -3/8" Sqz Gun 4/21/06 4/24/06 25 ' Plug T3 9,727' 9,745' 20' 6,750' 6,767' 3 -3/8" 6 11/29/04 4/24/06 . k. '' "1' 5 T3 9,729' 9,745' 16' 6,752' 6,767' 3 -3/8" 6 5/6/06 - T T3 9,745' 9,747' 2' 6,767' 6,768 3 -3/8" Sqz Gun 4/21/06 4/24/06 ?d 't? T3 10,009' 10,031' 22' 7,006' 7,026' 3 -3/8" 6 11/17/04 E 6 T3 10,064' 10,099' 35' 7,056' 7,088' 3 -3/8" 6 11/17/04 .,ai;r 7 T3 10,099 10,140' 41' 7,088' 7,' 3 - 3/8" 6 11/16/04 .' _ T3 ,1' 1,' 20' ,' 7,163 " 6 / '7`. T3 10,242' 10,302' 60' 7,219' 7,273' 3 3/8" 6 11/3/04 11/2/04 to t =' T3 10,302' 10 28' 7,273' 7,299' 3 -3/8" 6 / T3 10 10,707' 36' 7 7,646' 3 - 3/8 3 - 3/8 " 6 Frac #3 7K 20/40 sand ° T3 10,796' 10,854' 58' 7,728' 7,782' 3 -3/8" 6 OPEN HOLE / CEMENT DETAIL °' 4" e, cmt w/ 420 (188 ) 12 G surface. Bumped plug, Y '' 9 -5/8 floats held. 1 w. 8 -1/2 -1/ hole cmt w/ 250 sks sks (110 bbls 12.5 ppg ppg class class G with lead, 40 followed bbls to by 162 sks (34 bbls) a 7" fi 49 15.8 ppg class G tail. 20 bbls of cmt to surface. Bumped plug, floats held. Cleaned fill to 10,50d CfM + «' t-x 7" hole, cmt w/ 724 sks (215 bbls)13.5 ppg. Displaced w/ 168 bbls of 6% KCL water. Bumped W w/ Applied packer & to 4,500 psi to s /5/2006 a . y 4.1/2 plug / 3 ,230 psi. PP lied p ressure to 3,700 psi to set midstring P p r + ensure set. No cmt to surface. 0. NV 11 a., g . :'' INCLINATION DETAIL MISC. INFORMATION s KOP: 250' MD /TVD ` ° 12 Weatherford Retrievable Bridge Plugs: 4 Build: 4.09 /100' - 10,580' MD (P -Test to 2000 psi surface - Hold: 63.5 from 2,200'- 5,000' MD w /KCL water) Top of Float Collar@ ' '" ? Drop: 2.4 /100' to 25 from 5,000'- 7,206' MD 1Q979 MD/ 2,s9cTw yts t - 10,618' MD (would not test) al/2' Inclination at TD: 209 Both plugs rated to 7500 psi above & TD =11,094' PBTD= 7,680' Azimuth: 331 to 5,500' MD & 310 to TD 10,000 psi from below. MAX HOLE ANGLE = 63,5 °Co22,200 4 -1/2" Short Joint Locations: @ 6,904' - 6,925' MD @ 8,536' - 8,557' MD Revised By: TDF 2/4/2013 . Ninilchik Unit 2013 BOP Stack Knight Oil Tools Rental Hikarp ALtska,1 U 02/05/2013 Ninilchik Unit SD #2 Cloverleaf #4 BOP 3.98' Hydril GK 11" -5000 111 111 111 111 111 111 1 1 11 11 1 CIUV-U m �. 4.54' C 1 1 2 7/8 -5 variables ® 11 " 5000 Blind 1 lit 11l 111 111 e OSg2L 1 \165 Chok /1610 1 M alves �72767° /1/-1- 0` \1 61 On eeI One HCR 111 111 111 1111 .16 2.00' I - It �� r li Ill 111 111 111 111'1! Page 1 of 1 Schwartz, Guy L (DOA) From: Schwartz, Guy L (DOA) Sent: Friday, February 08, 2013 4:47 PM To: 'Shane Bennett - (C)' Cc: Keith Elliott; Chris Myers; Chris Kanyer; Billy Applewhite - (C); Regg, James B (DOA) Subject: RE: 403's SD -2 and SD -7 (PTD 204 -107 and PTD 211 -050) Shane, I approval to proceed with the preliminary E -line work as outlined in You have verba app p p ry your Y submitted sundry applications for S Dionne -2 and S Dionne -7 . Ai As we discussed submit the Cloverleaf 4 rig package as soon as possible. We will need that before the rig inspection so we have time to review and comment. Regards, \ a, r " Guy Schwartz Senior Petroleum Engineer AOGCC 793 -1226 (office) • 444 -3433 (cell) From: Shane Bennett - (C) [mailto:sbennett@hilcorp.com] ►, Sent: Friday, February 08, 2013 4:28 PM .r To: Schwartz, Guy L (DOA) Cc: Keith Elliott; Chris Myers; Chris Kanyer; Billy Applewhite - (C) Subject: 403's SD -2 and SD -7 Guy per are phone conversation on the SD -2 and SD -7 wells. I wanted to confirm the verbal, for the go ahead with E -Line, pertaining to the setting of plug, • dumping 25'+ of cement, SI 24hrs, tag TOC and cut 4 1 /2" tubing. No further WO • work will be performed until AOGCC rig inspection and OK is given. Thank you, Shane Bennett Shane Bennett - (C) D A Operations Engineer — Alaska • • sbennett @hilcorp.com 0 (907) 777 -8425 AI C (325) 203 -7487 H (325) 643 -2405 /4 , AI , a, / 1 2/8/2013 Marathon Alaska Production LLC Marathon Alaska Asset Team P.O. Box 1949 MARATHON ®AIaSICa Production LLC Kenai, AK 99611 Telephone 907/283-1371 Fax 907/283-1350 ~~~ V G January 7, 2010 Mr. Winton Aubert Alaska ail ~ ~~4 rz;~o. ~omsnissi~~ Alaska Oil & Gas Conservation Commission 333 W 7th Ave Anchorage, Alaska 99501 '~r JAIv ~ ~. Z01 Reference: 10-404 Report of Sundry Well Operations ~ O ~~ Field: Ninilchik Unit /Susan Dionne Pad ~~ Well: Susan Dionne #2 Dear Mr. Aubert: Attached for your records is the10-404 Report of Sundry Well Operations for SD-2 well. This report covers the work performed to recover any remaining reserves from the Tyonek formation. The perforations below 7,680' MD were plugged off and new perforations were added up-hole in the T-1 sands. No production was achieved from the T-1 sands. An evaluation is now underway to determine the potential of recompleting SD-2 into the Beluga formation. Anew 10-403 will be submitted, for this work, if it is determined that SD-2 can flow from the Beluga formation in commercial quantities. Please contact me at (907) 283-1371 if you have any questions or need additional information. Sincerely, ~~J ~~ Kevin J. Skiba Regulatory Compliance Technician Enclosures: 10-404 Report of Sundry Well Operations cc: Houston Well File Well Schematic Kenai Well File Operations Summary KJS STATE OF ALASKA ALASKA OIL AND GAS CONSERVATION COMMISSION `i }t R '~ (YY REPORT OF SUNDRY WELL OPERATIONS t //~~ qp ~1, ,+~ +1~`~~ i}~0 (.: r~.+i. Iki` ,R 8~/~11'ti~ei'a i; 1. Operations Abandon Repair Well Plug Perforations ~ Stimulate Other Performed: Alter Casing ^ Pull Tubing ^ Perforate New Pool ^ Waiver ^ Time Extension ^ Change Approved Program ^ Operat. Shutdown ^ Perforate ^~ Re-en r Suspended Well ^ 2. Operator 4. Well Class Before Work: .Permit to Drill Number: Name: Marathon Alaska Production LLC Development ~ Ex lorato ^ p ry^ 204-107 3. Address: PO Box 1949 Stratigraphic ^ Service ^ .API Number: Kenai Alaska, 99611-1949 50-133-20541-00-00 7. Property Designation (Lease Number): 8. Well Name and N~ber: ~ ADL-359242, ADL-3592421, 8~ ADL-389180 Susan Dionne #2 9. Field/Pool(s): \ Susan Dionne Field /Undefined Gas Pool 11. Present Well Condition Summary: Total Depth measured \ 11,094' feet Plugs (measured) 7,730, 9,700, 10,580, 10,618, 10,770 feet true vertical\ g,p07' feet Junk (measured) NA feet Effective Depth measured 7,6$0' feet Packer (measured) 5,733' feet true vertical 4,gg4' feet (true vertical) 3,290' feet Casing Length Size MD TVD Burst Collapse Structural Conductor 98' 20" 119' 119' 3,060 psi 1,500 psi Surface 1,906' 9-5/8" 1,927' 1,575' 6,870 psi 4,750 psi Intermediate 5,921' 7" 5,942' 3,420' 7,240 psi 5,410 psi Production 11,073' 4-1/2" 11,094' 8,007' 8,430 psi 7,500 psi Liner Perforation depth: Measured depth: 6,751' - 6,756' True Vertical depth: 4,045' - 4,049' Tubing (size, grade, MD &TVD): NA NA NA NA SSSV: NA NA NA Packers and SSSV (type, MD & TvD): Packers: Baker ZXP 5,733' 3,290' 11. Stimulation or cement squeeze summary: Intervals treated (measured): Two cast iron bridge plugs were installed, with cement plugs, isolating the perforations below 7,680' MD. Five feet of the Toynek T-1 sands were then perforated across the interval of 6,751'-6,756' MD. Treatment descriptions including volumes used and final pressure: 12. Representative Daily Average Production or Injection Data Oil-Bbl Gas-Mcf Water-Bbl Casing Pressure Tubing Pressure Prior to well operation: 0 0 - 0 - Subsequent to operation: 0 0 - 0 - 13. Attachments: .Well Class after work: Copies of Logs and Surveys Run Exploratory ^ Development ^~ Service ^ Daily Report of Well Operations X Well Status after work: Oil Gas ~ WDSPL GSTOR ^ WAG ^ GINJ^ WINJ ^ SPLUG ^ 16. I hereby certify that the foregoing is true and correct to the best of my knowledge. Sundry Number or N/A if C.O. Exempt: 308-435 Contact Kevin Skiba (907) 283-1371 Printed Name Kevin J. Skiba Title Regulatory Compliance Technician ~. Signature Phone (907) 283-1371 Date January 7, 2010 ~,d Form 10-404 Revised 7/2009 RE~DMS ~ JAN 11 ~0'~ ~'"` Submit Original Only Marmon Operations Summary Report by Job „•~ ®pj~ Well Name: SUSAN DIONNE 2 Qtr/Qtr, Block, Sec, Town, Range Field Name License No. State/Province Country 6006001S013W01 NINILCHIK SUSAN DIONNE ALASKA USA Daily Operations Re ort Date: 11/7/2009 Job Cate o ABANDON 24 Hr Summary MIRU Expro. Drift well w/ 3.625" junk basket. RIH and set Weatherford CIBP @ 9700' MD RKB. RD Expro. Ops Trouble Start Time End Time Dur (hrs) O sCode ~'i Activity Code Stah1S COde Comment ~ 07:30 08:30 1.00 SAFETY MTG AF Held PJSM w/ Expro and operator. Discussed sim ops, muster areas, and new employee on the job. Obtained safe work permit. 08:30 10:30 2.00 RURD ELEC AF RU wireline equipment. 10:30 11:00 0.50 TEST EOIP AF MU tool string and stab on well. PT lubricator to 2000 psi- leaking o-ring on lubricator. 11:00 11:30 0.50 TEST EOIP TA MSOT Repair o-ring on lubricator and PT to 2000 psi. Good test. 11:30 13:30 2.00 RUNPUL ELEC AF RIH w/ 3.625" junk basket and GR. Drift well to 9,800' MD RKB. No issues. POOH. 13:30 13:45 0.25 SAFETY MTG AF Held explosives safety meeting. 13:45 14:00 0.25 PULD PKR AF Arm Baker #10 setting tool, PU and stab on well. 14:00 16:00 2.00 SETREL PLUG AF RIH w/ 3.562" OD Weatherford CIBP. Correlate depth to short joint @ 8550' on CBL. Set plug at 9700' MD RKB (9692' CCL). Tag plug and confirm set. POOH. 16:00 17:00 1.00 RURD ELEC AF LD lubricator and RD wireline equipment for night. Sign out, turn in safe work permit, and leave location. Re ort Date: 11/8/2009 Job Cate o ABANDON 24 Hr Summary RU Expro. Dump bail 27 gals of cement for an estimated 42' of cement (estimated PBTD= 9,658' MD RKB). RD Expro. -- i OPs - Trouble ---- -.. ___. __. - StartTime End Time Dur hrs) '~. ( , Ops Code ', Activity Code Status Cotle Qprn~pt 07:30 08:30 1.00 . SAFETY MTG AF Held PJSM w/ Expro and operator. Discussed working with exposives, electrical hazards, and slippery conditions. Obtained safe work permit. 08:30 09:00 0.50 RURD ELEC AF RU wireline equipment and PU lubricator. 09:00 09:30 0.50 PULD EOIP AF MU 3" x 30' cement bailer, mix cement (9 gals), and fill bailer. PU and pull into lubricator, stab on well, and PT to 600 psi. Good test. 09:30 11:30 2.00 DUMPBL CMT AF RIH w/ dump bailer, set down on CIBP to break glass, POOH. 11:30 12:30 1.00 REPAIR EOIP TA MSOT Glass did not fully break. Clean out cement from bailer. 12:30 12:45 0.25 SAFETY MTG TA MSOT Held explosives safety meeting. Re-assemble bailer and arm with explosive squib. Mix cement (9 gals) and fill bailer. 12:45 14:45 2.00 DUMPBL CMT TA MSOT RIH w/ dump bailer, tag CIBP, and set off squib. POOH. 14:45 15:15 0.50 PULD EOIP AF Re-arm bailer squib, mix cement (9 gals), and fill bailer. 15:15 17:15 2.00 DUMPBL CMT AF RIH w/ dump bailer, tag CIBP, and set off squib. POOH. 17:15 17:45 0.50 PULD EOIP AF Re-arm bailer squib, mix cement (9 gals), and fill bailer. 17:45 19:45 2.00 DUMPBL CMT AF RIH w/ dump bailer, tag CIBP, and set off squib. POOH. 19:45 20:30 0.75 RURD ELEC AF LD lubricator and RD wireline equipment for night. Sign out, turn in work permit, and leave location. Re ort Date: 11/9/2009 Job Cate o ABANDON 24 Hr Summary RU Expro. AOGCC witnessed (Jeff Jones) tag and sample of PBTD w/ 2.25" DD bailer @ 9,643' MD RKB (57' above CIBP). RIH and set Weatherford CIBP @ 7,730'. Bled down well to 0 psi. Dump bailed 27 gals of cement on plug for an estimated 42' of fill. RD Expro. - - - ' -Ops Trouble Start Time End Time Dur (hrs) Ops Code Activity Code Status Code _ Comment 07:30 08:30 1.00 SAFETY MTG AF Held PJSM w/ Expro and operator. Discussed bleeding pressure from tools, operating procedures, and emergency operations. Obtained safe work permit. 08:30 09:15 0.75 RURD ELEC AF RU wireline equipment and PU lubricator. 09:15 09:45 0.50 PULD BHA AF MU tool string (14' of weight bars, CCL, and 2.25" x 15' DD bailer), PU into lubricator, stab on well, and PT to 500 psi. Good test. 09:45 11:45 2.00 RUNPUL ELEC AF RIH for AOGCC witnessed tag of PBTD by Jeff Jones. Tag cement and retrieve sample @ 9,643' MD RKB (57' above CIBP). Positive indication of cement and cement top. 11:45 12:15 0.50 PULD BHA AF LD tool string and prepare to RIH with CIBP. 12:15 12:30 0.25 SAFETY MTG AF Held exposives safety meeting. Arm setting tool, PU into lubricator, and it stab on well. 12:30 14:30 2.00 SETREL PLUG AF RIH w/ 3.562" OD Weatherford CIBP. Correlate to CBL and short joint @ 6904'. Set plug @ 7730' (7722' CCL). Bleed well pressure to 0 psi while POOH. ' www.peloton.com Page 1/2 Report Printed: 1/5/2010 -~ Mar~tfion Operations Summary Report by Job ,•~ ®01~ COmpe Well Name: SUSAN DIONNE 2 Casing Flange Elevation (ft) Ground Elevation (ft) KB-Casing Flange Distance (ft) KB-Ground Distance (ft) Spud Date Rig Release Date " Ops Trouble Start Time End Time Dur (hrs) Ops Code Activity Code i _ Status ~, Code Comment 14:30 15:30 1.00 PULD BHA AF _ LD setting tool, PU 3" x 30' bailer, mix cement, and fill bailer. PU into lubricator and stab on well. 15:30 16:30 1.00 DUMPBL CMT AF RIH w/dump bailer (9 gals) and tag CIBP @ 7730'. Dump cement and POOH. 16:30 16:45 0.25 PULD BHA AF Mix cement, arm bailer squib, and fill bailer. PU into lubricator and stab on well. 16:45 17:45 1.00 DUMPBL CMT AF RIH w/ dump bailer (9 gals) and stop @ 7715'. Dump cement and POOH. 17:45 18:00 0.25 PULD BHA AF Mix cement, arm bailer squib, and fill bailer. PU into lubricator and stab on well. 18:00 19:00 1.00 DUMPBL CMT AF RIH w/ dump bailer (9 gals) and stop @ 7700'. Dump cement and POOH. 19:00 20:00 1.00 RURD ELEC AF LD bailer and lubricator, RD wireline equipment. Sign out, tum in work permit, and leave location. Daily Operations Re ort Date: 11/11/2009 Job Cate o ABANDON 24 Hr Summary AOGCC waived witnessing tag and test. Tag cement plug at 7680'. Pressure tested cement plug to 1800 psi. 0 psi drop in 15 minutes. - _- ' T Ops Trouble Start Time End Time Dur (hrs) Ops Cade Activity Cgde ~ Status Code Comment 07:30 08:15 0.75 SAFETY MTG AF Witness for tag and pressure test waived by Jim Regg 11/09/09 at 2 PM. Hold PJSM. Discuss pollard JSA and safety checklist. Discuss ASRC JSA. Assign tasks and issue work authorization. 08:15 10:45 2.50 RURD SLIK AF Spot and RU slickline unit. PU 3.12 swage and stab on. 10:45 11:00 0.25 TEST EOIP AF Test lubricator and lines to choke manifold to 3000 psi. 11:00 12:30 1.50 RUNPUL SLIK AF RIH. Tag cement at 7680'. High drag at slow speeds in the bottom 1000' of the hole. Pulling faster is lower pulling weights. 12:30 14:00 1.50 PUMP WTR AF Fill hole with water and start pressure test. Hole does not seem to fill. 14:00 16:30 2.50 RUNPUL SLIK AF PU 2.82" gauge cutter. Test with quicktest sub and RIH. Counter failed. POH, reset counter and RIH. Same tag and same conditions on bottom. Fluid level is at 175'. 16:30 17:00 0.50 RUNPUL SLIK AF PU 3.12" swage and RIH to fluid level. Fluid level at 172'. Continue checking fluid level for 20 min. No change in fluid level. 17:00 17:30 0.50 TEST PLUG AF Resume pumping water. Catch fluid after 3 Bbls and pressure to 1800 psi. Held 1800 psi with 0 psi drop for 15 min. 17:30 19:00 1.50 SECURE WELL AF Bleed down pressure and secure well for night. www.peloton.com Page 2/2 Report Printed: 1/5/2010 ' ~ Marathon Operations Summary Report by Job ~~oa ~OilCornpany Well Name: SUSAN DIONNE 2 ',Qtr/Qtr, Block, Sec, Town, Range Field Name License No. State/Province Country 6006001S013W01 NINILCHIK SUSAN DIONNE ALASKA USA Daily Operations ',Report Date: 11/12/2009 Job Category: RECOMPLETION '24 Hr Summary '~ Swab water from surface to 2600'. Shut down due to high wind. ~~ i Ops Trouble Start Time End Tme Dur (hrs) li Ops Code Activity Code Status Code: Comment 09:00 09:30 0.50 SAFETY MTG AF Hold PJSM. Discuss Pollard and ASRC JSA. Discuss Pollard safety checklist. Assign tasks and issue work authorization. 09:30 10:00 0.50 RURD SLIK AF RU slickline. Well is at 0 psi (all perfs are below the plugs). 10:00 10:15 0.25 TEST EOIP AF Test lubricator to 2000 psi 10:15 10:45 0.50 RUNPUL SLIK AF RIH to straighten wire before starting heavy pulling. 10:45 14:45 4.00 RUNPUL SLIK AF PU 3.83" swab cups. Start swabbing with fluid to surface. Taking about 300' bites and changing cups when returns are small. Swab 19 runs and change swab cups 2 times. Final results were fluid level at 2600'. 14:45 15:30 0.75 SECURE WELL AF Measure wind gusts to 25 MPH. SD job due to excessive wind. Secure well. Will return on Monday. Report Date: 12/3/2009 Job Cate o RECOMPLETION 24 Hr Summary MIRU Pollard wireline. Swab water f/ 2,600'-3,950'. RD for night. Ops Trouble Start Time End Time Dur (hrs) Ops Code Activity Code StatUS Code Comment _ _ _ -- 07:30 08:15 0.75 SAFETY MTG AF Held PJSM w/ Pollard, ASRC, and operator. Discussed swabbing operations, environmental awareness, falling snow/ice, and emergency procedures. Obtained safe work permit. 08:15 10:45 2.50 RURD SLIK AF Spot and RU wireline equipment (.160" truck). PU lubricator and tool string. 10:45 11:00 0.25 TEST EOIP AF PT lubricator to 1500 psi. Good test. Pump methanol through flowback equipment to ensure not frozen. 11:00 16:15 5.25 SWAB TBG AF RIH w/ RS, RB, 7' x 2.125" stem, RB, 4' x 2.125" stem, OJ, RB, LSSJ, and undersized cups for 4.5" tubing. Made 3 runs and change out to full size cups. Swab fluid level f/ 2,600' to 3,950' MD RKB taking - 500' bites and averaging 5 bbls fluid per run. 16:15 16:45 0.50 RURD SLIK AF LD lubricator for night, and SD equipment. Sign out, turn in work permit, and leave location. Report Date: 12/4/2009 Job ategory: RECOMPLETION C _ _ 24 Hr Summary RU Pollard wireline. Swab water f/ 3,950'-5,660'. RD for night. Ops Trouble ~ Start Time End Time Dur (hrs)_ Ops Code Activity Code Status Code Comment • . _ _ --_- 07:30 08:15 0.75 SAFETY MTG AF Held PJSM w/ Pollard, ASRC, and operator. Discussed swabbing operations, environmental awareness, BBS observations, and emergency procedures. Obtained safe work permit. 08:15 09:00 0.75 RURD SLIK AF RU wireline equipment (.160" truck). PU lubricator and tool string. 09:00 09:15 0.25 TEST EQIP AF PT lubricator to 1500 psi. Good test. Pump methanol through flowback equipment to ensure not frozen. 09:15 14:30 5.25 SWAB TBG AF RIH w/ RS, RB, 7' x 2.125" stem, RB, 4' x 2.125" stem, OJ, RB, LSSJ, and standard size cups for 4.5" tubing. Made 7 runs and changed out cups 3 times. Swab fluid level f/ 3,950' to 5,660' MD RKB taking - 500' bites and averaging 5 bbls fluid per run. 14:30 15:00 0.50 RURD SLIK AF LD lubricator for night, and SD equipment. Sign out, turn in work permit, and leave location. Re ort Date: 12/5/2009 Job Category: RECOMPLETION ___ 24 Hr Summary RU Pollard wireline. Swab water f/ 5,660'-6,280'. Having trouble getting large amounts of water to surface. RD for night. - - --- -- ~i Ops Trouble --- - I Start Time End Time Dur (hrs) Ops Code Activity Code Status Code Comment _ _ 08:00 08:30 0.50 SAFETY MTG AF Held PJSM w/ Pollard, ASRC, and operator. Discussed swabbing operations, environmental awareness, manlift operations, and emergency procedures. Obtained safe work permit. 08:30 09:00 0.50 RURD SLIK AF RU wireline equipment (.160" truck). PU lubricator and tool string. 09:00 09:15 0.25 TEST EOIP AF PT lubricator to 1500 psi. Good test. Pump methanol through flowback equipment to ensure not frozen. 09:15 15:30 6.25 SWAB TBG AF RIH w/ RS, RB, 7' x 2.125" stem, RB, 4' x 2.125" stem, OJ, RB, LSSJ, and standard size cups for 4.5" tubing. Made 5 runs and changed out cups 4 times. Swab fluid level f/ 5,660'-6,280 MD RKB taking - 500' bites and getting minimal fluid to surface. www.peloton.com Page 1/3 Report Printed: 12/17/2009 ' ~ IVlera'that Operations Summary Report by Job Hu-rwniox ~OiICOrt'~ar1y Well Name: SUSAN DIONNE 2 Casing Flange Elevation (ft) Ground Elevation (ft) K&Casing Flange Distance (ft) KB-Ground Distance (ft) Spud Date Rig Release Date . ~~ Start Time ~' End Time Dur (hrs) - Ops Code _ ~ Activity Code ~ - Ops Status Trouble.. Code - - _ Comment 15:30 16:00 0.50 RURD SLIK AF LD lubricator for weekend, and SD equipment. Sign out, turn in work permit, and leave location. Daily Operations Report Date: 121912009 Job Cate o RECOMPLETION 24 Hr Summary RD Pollard wireline 0.160" truck. RU Pollard 0.250" truck. Swab water f/ 6,280'-6,765' (4' below proposed perf interval). Could not go any deeper due to damaged section of wire. RD for night. i Ops Trouble Start Time End Time Dur (hrs) Ops Code ~ .Activity Code Status Code Comment -- ---~ 07:30 08:15 0.75 SAFETY MTG AF - Held PJSM w/ Pollard, ASRC, and operator. Discussed swabbing operations, environmental awareness, working with cranes/use of taglines, and emergency procedures. Obtained safe work permit. 08:15 09:00 0.75 RURD SLIK AF RD wireline equipment (.160" truck) move out of area. 09:00 10:00 1.00 RURD SLIK AF RU wireline equipment (.250" skid). PU lubricator and tool string. 10:00 10:15 0.25 TEST EQIP AF PT lubricator to 1500 psi. Good test. Pump methanol through flowback equipment to ensure not frozen. 10:15 16:00 5.75 SWAB TBG AF RIH w/ RS, RB, 7' x 2.125" stem, RB, 4' x 2.125" stem, OJ, RB, LSSJ, and standard size cups for 4.5" tubing. Made 4 runs and changed out cups 4 times. Swab fluid level f/ 6,280'-6,765' MD RKB. First 2 runs dry followed by 310' and 290' of fluid on following runs. Could not go any deeper due to damaged section of braided wire. 16:00 16:30 0.50 RURD SLIK AF LD lubricator for night, and SD equipment. Sign out, turn in work permit, and leave location. Report Date: 12/10/2009 Job Cate o RECOMPLETION 24 Hr Summary RD Pollard 0.250" truck and equipment. Hook jumper up to well and begin to pressurize for perforating. _ _ ~ - j Ops _._.__. Trouble Start Time End Time ~ Dur (hrs) Ops Code ~ gctiv~ty Code Status Code ~ Comment 09:00 09:45 0.75 SAFETY MTG AF Held PJSM w/ Pollard, ASRC, and operator. Discussed rigging down, environmental awareness, working with cranes/use of taglines, and emergency procedures. Obtained safe work permit. 09:45 11:45 2.00 RURD SLIK AF RD wireline equipment (.250" skid). RD lubricator and tool string and load on truck. Clean area, sign out, turn in work permit, and leave location. 11:45 06:00 18.25 WAITON OTHR AF Pressurize well with gas from another well. Well building pressure. Start: 0 psi. Report Date: 12/12/2009 Job Category: RECOMPLETION 24 Hr Summary MIRU Expro wireline. RIH w/ 3 3/8" x 5' perforating gun loaded 6 SPF and 60 degree phasing. Perforate 6,751'-6,756' MD RKB (correlated from OH log) with 790psi SITP. Pressure built to 1050 psi in 30 min. Attempt to flow well- well died. RD Expro and continue to monitor build-up. - __ -- - Start Time. End Time Dur (hrs) Ops Code - - T Ops Activity Code ~ Status. - ?rouble Code - Comment 09:00 09:45 0.75 SAFETY MTG ~ AF -- _ - Held PJSM w/ Expro and operator. Discussed rigging up, environmental awareness, working with explosives, and emergency procedures. Obtained safe work permit. 09:45 11:15 1.50 RURD SLIK AF RU wirleline equipment and PU lubricator. 11:15 11:30 0.25 TEST EQIP AF Hold explosives safety meeting. Arm perf gun, MU lubricator, and PT to 3000 psi. 11:30 12:45 1.25 TEST EQIP TA MSOT Repair leaking o-rings in lubricator. PT to 3000 psi- good test. 12:45 14:45 2.00 PERF TBG AF RIH w/ 3 3/8" x 5' perforating gun loaded 6 SPF and 60 degree phasing (SPD-3125-311NT3 charges and PX-1 firing head). Correlate to shortjoint @ 6900' MD RKB on CBL log. Pull into position and shoot gun @ 6,751'-6,756' MD RKB (correlated off OH log 6756'-6761') w/790psi SITP. Pressure built to 1050psi in 30 min. POOH. 14:45 16:15 1.50 RURD ELEC AF RD wireline truck and equipment. LD lubricator and spent gun. Sign out, turn in safe work permit, and leave location. 16:15 17:15 1.00 FLOW TEST AF Attempt to flow well with SITP of 1050 psi. Well blew down and died shortly. Shut well in and monitor build up. Report Date: 12/16/2009 Job Category: REC OMPLETION __ ___ _ 24 Hr Summary Shoot fluid level with echometer. Fluid level at 2780'. _ - Ops Trouble. Start Time End Time Dur (hrs) Ops Cade Activity Cade Status Code Comment 14:30 15:15 0.75 SAFETY MTG AF Hold PJSM with Pollard and Operator. Discuss JSA ansd assign tasks. www.peloton.com Page 2/3 Report Printed: 12/17/2009 IVl~rathon Operations Summary Report by Job raawtn+or ®OIICOmpany Well Name: SUSAN DIONNE 2 ~~ Start Time ~ End Time Dur(hrsl Ops Code Activity Code Ops Status Trouble Code Comment 15:15 16:00 0.75 SHOOT FLVL AF _ Shoot fluid level 2 times. Fluid level at 2780'. Rough calculations estimated that fluid level would be 2665'. 16:00 16:30 0.50 SECURE WELL AF Secure well, turn in work authorization and leave location I www.peloton.com Page 3/3 Report Printed: 12/17/2009 M MARATNOM 7" x 4-112" annulus filled with 9.7 ppg mud. Sqz broke down Conductor 20" K-55 133 ppf Top Bottom MD 0' 119' TVD 0' 119' 9-518" L-80 47 ppf Mod Butt Top Bottom MD 0' 1,927' TVD 0' 1,575' 1/4" hole, cmt wl 420 sks (188 bbls) 12 ppg ss G with 40 bbls to surface. Bumped plug, ats held. Intermediate Casino 7" L-80 26 ppf Mod Butt Top Bottom MD 0' 5,942' TVD 0' 3,420' 8-112" hole, cmt w/ 250 sks (110 bbls) 12.5 ppg class G lead, followed by 162 sks (34 bbls) 15.8 ppg class G tail. 20 bbls of cmt to surface. Bumped plug, floats held. Production Casino 4-1/2" L-80 12.6 ppf Mod Butt Top Bottom MD 0' 11,094' TVD 0' 8,007' ~" hole, cmt w/ 724 sks (215 bbls)13.5 ppg. Displaced wl 168 ~bls of 6 % KCL water. Bumped plug wl 3,230 psi. Applied lressure to 3,700 psi to set midstring packer & to 4,500 psi to Insure set. No cmt to surface. Acid (HCLIHF) sgzed (4124106) Cleaned fill to: 10,500' CTM (515106) Baker 4-112" Midstring ZXP Packer. Packer top @ 5,733' MD / 3,290'TVD. SD # 2 Tyonek Perforations Measured Depth Total Vert. De th To [ Bottom ~ _ - Footage To Bottom Gun Size T SPF Perf Date S z Date - 6,751' , 6,756' S _ 4,044' 4,048' 3-318" 6 12/11109 Isolated Perforations ' ' ; " 1 . ~ i - ' .. 4,962 ' -4,988 - '--~ -. _ 42h3 84 4 f i 4112106 1 1 ~o -r-o26 _ 40 ' 4 980 ' 5;616 2 12 5 B - 6/29{06 4 12 06 4124!06 6 750 ' ~ 6;75 - - 3' n u / - _ 9,729' _ ' 9,745' ~~ _ 16' - 6958 6,752' ` ;76~ 6 6,767 - 3-3/8" - I 6 1H39 04 516106 4124/06 -- 10,009' - - 10,031' ~- 22' ~;76i - 7,006' '. ~~968 j 7,026' ; '_. 3-3/8" __ 6 - 4 11117104 4/24/06 10,064' 10,099' 35' 7,056' 7,0_88' 3-3/8" __6 ' 11117/04 10,099' 10,140' 41' ~ 7,088' 7,125' ~ 3-318" 6 i 11/16/04 10,161' 10,181' 20' 7,145' 7,163 ~ 3-318" 6 _11116/04 --- 10,242' 10,302' --- 60' 7,219' 7,273 - ~3-318" 6 11/3/04 -- - -- 10,302' 10,671' _ 10,330' ~ 10,707 28' 36' _ a 7273 7,612' 7,299' 7,646' 3-3/S" 3.318"-~ 6 6 L-_.__. 1 _1112104_ Fnc'tl #3]K 2°I40 vand L.._.___'.__.. - 10,796' 10,854' 58' _ 7,728' ...-._. 7,782' - 3-3I8" 6 i BHL: 330' FSL, 1210' FEL, Sec. 31, T1N, R13W, SM Well Name & Number: Susan Dionne # 2 Lease: Ninilchik Unit Coun or Parish: Kenai Peninsula Borou h State: Alaska Count USA Perforations MD: 6,751'-6,756' Perforations TVD: 4,045'-4,049' An le KOP and De the -2.16°/100 ft 250' MD to 3,073' MD An le Perforations: 29.3° Dated Completed: 12/612004 Com letion Fluid: Revised b Kevin Skiba Last Revison Date: 11712010 SD-2 Sundry #308-435 • ~ `L D T .- ~ O'~ Aubert, Winton G (DOA) From: Mullin, Mickey [mmullin~marathonoil.com] Sent: Monday, November 02, 2009 1:54 PM To: Aubert, Winton G (DOA} Cc: Miranda, Kyte; Skiba, Kevin J. Subject: SD-2 Sundry #308-435 Attachmerrts; SD2 Plug and Perf 10-31-09.doc; SD 02 WBD 10-31-09 Proposed.xls Winton, Please delete my prior message «SD2 Plug and Perf 10-31-09.doc» «SD 02 WBD 10-31-09 Proposed_~ds» Hi Winton, Page 1 of 1 Here is the proposed program and weilbore diagram for SD-2. It accomplishes the same thing as the approved sundry. The biggest difference is that the approved cement top is 7926' and we are proposing to set a plug at 7730' and dump bail 35' of cement and the perforation intenral is 1' shallower.. The current part of the Tyonek abandonment is plug and cement at 9700' and plug and cemeM at 7730'. In the future we will add a third plug above 6750' to complete the Tyonek abandonment_ The timing will depend on the results of the pe~forating. We would like ta complete the work in the attached program (first 2 plugs and perfs) under the existing sundry #308-435. Thank you for your assistance ~~ Senior Production Engineer Marathon Oil Coanpany (907} 283-1337 (90~) 398-9954 . ~. ,~~ ~ ~ .~~ ( j ` i p t1, `(~ (~ [ s ~';,,~4~"'~~: s . _ . ~€J ~e~ 11/3/2009 ~J API 1k. 50-133-20541-00-00 Proo. Oes: ADL 359242/7 ADL 389t80 KB elevation: 156' (21' AGL) WBS t. dd.IXi.09646.CAP.CMP X: 213,017.73 Zone4 Y: 2,236,705.03 Zone 4 S : 7t29/2004 TD: &1912004 Ria Released: OO:OOhrs Bt26!'1004 Proposed ~ F Susan Dionne 2 ; Ninilchik Unit i 219' FSL, 1,418' FEL I I • ~ M/11tATNQN ConduMOr 20" K55 133 ppf Top Bottom MD 0' 179' TVD 0' 119' KOP: 230' MWND Build: 4.0°~100' Hdtl: 63.5° from 2,200'S,OOp' MD DfOD: 2_4°H 00' to 25° from 5,000'-7,206' MD Inclination at TD: 20° Azimuth: 331° to 5,500' MD 8 370° to TD T x 472' annulus fllled wkfi 9.7 ppg mud. PrOposed Tt Pertor<[-.-~- 6756'-676t' CIBP 7,730' ELMD :ement 7730' - 765" Acitl (HCL MF) sqzed ~ 7GG I4l21A6) ~ 9,700' ELMD ement 9700' - 9665' Cleaned fill to: 70,500' CTM (51fW6) -10,580' MD (P-Test M Z000 psi surface wlKCL water) -10,618' MD (would not test) Both plugs rated to 7500 psi above & 10,000 psi from below. ~YZ SUfYdCO C8SII19 95(8" L-00 47 ppf Mod Butt Top Bottom MD 0' 1,927' TVD V 1,575' 12-1/4' hole, cmt w! 420 sks (186 bbls)12 ppg class G with 40 bbls to surtace. Bumped plug, floals held. 1M" OD 0.049' wall Chemical in)ection string tied Mto Chemfcal Injection Nipple. top at 2400' wldouble eheck valve and rupture dfscs Baker 41l7' Mitlstring ZXP Packer. Packer toP ~ 5~733' MDr3,29UTVD. 4-1f7' Short Joint Locations: e 6,904' - 6,925' MD ~ 8,536' - 8,55T MD R- t-Sqz broke down ~ T L-80 26 ppf Mod Butt I Top Bottom MD 0' S,942' ND 0' 3,420' 8-1/2" Iwle. cmt w/ 250 sKS (170 bbls) 12.5 ppg class G Ieatl, tollowed by 162 sks (34 bbls} 15.8 ppg class G tail. 20 bb~ of cmt Lo surface. Bumped plug, floats 41f2" L-80 12.6 ppf Motl Butt Top BWtom MD 0' 11,094' TVD 0' B.OOT frole, cmt w/ 724 sks (215 bbls)13.5 ppg. Displaced 166 bbls of 6X KCL ~rafer. Bumpetl plug w/ 3,230 psi. pieC pressure b 3,700 psf to set midstring packer 3 4,500 psi to ensure set No cmt to surface SD # 2 Tyonek PerForations ~ Measured Depth Total Vert. Depth ToQ Boriom Foota~e J~ Bottom Gun Size SPF Perf te D_~te T1 T2 7,760 7.786' 2v 4,367 %..soa' 3318" 6 i913103 :^'% T2 T,T85' 7,826' 4C' 4.980' S,~iS' 3„f8" E t25103 ~-2IB6 T3 9,T2T 9,729' 7 6,750' 6,752' 33l8" Sqz Gun 4Y11/06 .:I06 T3 9,72T 9,745' ZO' 6,750' 6,78T 5378" 8 11i29(04 ~SlO6 T3 9,729' 9,745' 1E 6,757 6,76T 3~l8" 6 5/6/O6 T3 9,r'S,'i ^a.TLT 7 ~-8.9~9T n.7~ S3f6"' --~8trvt~ y ~ ~.~l06 T3 10,009' 10.031' 27 7.006' 7.026' &318" 6 11/17/04 10K Cast lom Britlge Plug ~~ T3 10,161' t0,1B~ ~ 10,770' MD 1 ~ T3 ~o,zar ~o,ao: ~ - T3 10,307 10,331 ~ I (7op of float collar) T3 10,67T 10,70~ 10,970' MD /7,890' TVD T3 10,796' 70,85~ 7D PBTD 11,094' MD 10,580' MD ~~ B,OOT TVD 7,528' TVD BHL: 33~' r~L, 1:;" ~. T1*: - ~ 7, 6 6 Well Name & Number: Susan Dionne # 2 Lease: Ninilchik Unit Coun or Parish: Kenai Peninsula Borou h State Alaska Count USA Perforations MD : 8 728' - 70 854' Perforations D: 5 355' - 7 798' A^r;e (? i;^~ ~-!..; ~_?- Avera e 2.16°1100 tt~FG :.ei~ Ftu c~ 3 n73' .r,t~ -- - - ~ 25" _ 21.5" Dated Com leted: 12/6/2004 Com letion Fluid Pre ared b: Kevin Skiba Last Revison Date M7/2008 . . __ ___ _ . x ¢~ ~~~ x, ~ :~}~~ MARATHON ALASKA PRODUCTION LLC ALASKA ASSET TEAM SD 2 Ninilchik Field Susan Dionne Pad Plug Tyonek and PerForate Procedure wBS # ??? APPROVALS: ~Cu.~e.htvraru~a 1Q/31/2U09 Program Writer JHcc!#ec ~~u~in 1~31/ZOQ9 Mickey Mullin Latest Version Date: 10/31/2009 Lyndon Ibele Well Status: 10/19/09 No flow , SIWHP is 720 psi and stable, Fluid ievel is at 1450 MD (1325' ND). Wellhouse is off. HistOry: Well has never been productive, 10 zones have been perforated (7766 -10854 gross), 1 of which has been cement squeezed {7766-7826}, 1 of which has been cemerrt squeezed and reperforated along with acidizing (9727-9747}, and 2 of which are isolated by a series of CIBPs. The first finro CIBPs would not pressure test, but third and shallowest one at 10,580' MD tested 1112/04. • 11/1?108: Attempt to pull BPV, no BPV in well but thick grease plug existed. • 04/10/Q8: Pollard tag 10,482' with 1.60" GR, ran PT. • 5/07/06: Ran 3.75" G~unk basket to 9900' WLM. Perforate 9729' - 9745'. • 5/Q6/06: Jetted wel! clean to 10,500' with KCL water. Jetted well dry with N2 Obiectives: Plug back existing Tyonek perforations and perforate the Tyonek T006 interval at 6756' - 6761' MD. Resources: Eline Unit Manlift Lights SD-2 Plug and Perf Procedure AAAM Page 1 10l31/2009 U Test Pump /(built in on eline unit) Perf guns Dumpbail cement mix from B,J for 2 ea, 40' plugs Pollard test pump (for pressure te$ting cement plug). Slickline Unit Tank, Choke, and Gas Buster Facilities: • Facility tie-in work inside the SD production building must take ptace before the well is capable of flowing to sales. Some of the work includes installing a 5K flow valve, piping, flanges, fittings, and gauge hookups inside the SD production building. This work will conclude with a low pressure pneumatic test of the flowlines. Procedure rtn~e pa~~: Procedure (Part one1: Plug Back Tyonek *** Note #1: Notifv AOGCC 24+ hrs before pluc~in_q operation tZQ AAC 25.112 (h)) ***~` "** Note #2: AOGCC re_qulations revuire testin_q the ple~_q witl~ a surface pressure of 0.25 psi/ft tvd or 1500 psi twhatever is _qreater). With the plup at 4900' ivd, this is 1225psi so it requir+es 1500 psi test aressure at surface, i 1. Hold safety meeting with Eline contractor and operators. Discuss with operators the plan to use another well to pressure up SD-2 to 70Q - 75Q psi. 2. MIRU eline unit. 3. Pick up 3.5" gauge ring and stab on well. 4. Pressure test lubricator with fluid to 2000 psi 5. Drift well to 9800' MD. POH. b. Hold Explosives safety meeting. 7. PU 3.5" Weatherford CIBP and stab on. 8. RIH and tie into 21' SJ at 8550'. 9. Set CIBP at 9700' (middle of joint, 27' above perfs). 10. PU 30' X 3" bailer. Fill with 9 Gal cement (14' in 4-1J2") 11. Tag bridge plug to break glass and dump cement. POH. 12. Hold Explosives safety meeting. 13. Fi1130' X 3" bailer with 9 Gal cement (14' in 4-I12") 14. Stop at 9686' and set off blasting cap to dump cement. POH. SD-2 Plug and Perf Procedure MAM Page 2 10/31/2009 • • 15. Hold Explosives safety meeting. 16. Fi1130' X 3" bailer with 9 Gal cement (14' in 4-1/2") 17. Stop at 9672' and set off blasting cap to dump cement. POH. 18. WOC overnight. 19. PU weight bars and a 3" gauge cutter and tag plug (about 9655'). Recard plug tag depth and AOGCC witness name in wellview report. POH 20. Hold Explosives safety meeting. 21. PU 3.5" Weatherford CIBP and stab on. 22. RIH and tie into 21' SJ at 8550'. 23. Set CIBP at 7730' (middle of joint, 36' above perfs). 24. PU 30' X 3" bailer. Fill with 9 Gal cement (14' in 4-1f2") 25. Tag bridge plug to break glass and dump cement. P~H. 26. Hold Explosives safety meeting. 27. Fi1130' X 3" bailer with 9 Gal cement (14' in 4-1/2") 28. Stop at 7716' and set off blasting cap to dump cement. POH. 29. Hold Explosives safety meeting. 30. Fill 30' X 3" bailer with g Gal cement (14' in 4-1/2"} 31. Stop at 7'702' and set off blasting cap to dump cement. POH_ 32. WOC overnight. 33. PU weight bars and a 3" gauge cutter and tag plug (about 7685')_ Record plug tag depth and ~ AOGCC witness name in weliview report. 34. Fill well with Pollaxd triplex pump and PT to 1500 PSI with witness. 35. Release e-line unit. Procedure (Part finro): Swab well dry 1. Bring in tank, gas buster and choke and spot on pit liner. RU short and direct to assist in swabbing operations. If using a single choke rig a bypass line for swabbing. RU from tester valve to facilitate flowing later. 2. Hold safety meeting with Slickline contractor and operators. Discuss with operators the plan to use another well to pressure up SD-2 to 750 psi. 3. 1VIIRU Slickline unit with 0.160" wire. 4. PU 3.90" swab cups and make test run. Fluid level should be at surface due to pressure test of cement plug. 5. Pull 200' of fluid on first run. 6. Make as many runs as possible for 12 hour operations. Empty tank at the end of each day and figure on 4 days swabbing. 7. Swab fluid level down to ~000'. 8. Release slickline. SD-2 Plug and Pert Procedure MAM Page 3 10/31l2009 ~ Procedure (Part three): Perforate Tyonek T06 • 1. Hold safety meeting with Eline contractor and operators. Discuss flowing plans with operators to arrange assistance as needed to flow the well. 2. MIRU eline unit. Note SIWHP. 3. Pressure test lubricator with fluid to 3000 psi. 4. Drift well to TD ( 7000' MD). POH. 5. Hold E~losives safety meeting. 6. PU 6' X 3-3/8" Perf gun (loaded for 5') and stab on. 7. Test quick test sub to 30Q0 psi. 8. RIH to tie in to ZXP packer at 5733'. 9. Position gun. 10. Record pressure. 11. Shoot perforations 5756' -67b1' ( ') and log up. Accurately recard shut in pressure changes to use for rate calculations. 12. POH for 15 min minimum before opening welt to allow debris to fall ta bottorn. 13. Open well and record flowing canditions. Discuss results with the engineer. 14. If instructed, load guns to perforate Alternate zones listed belaw_ Perforations: lrrterval Top Bottom Net Gun Lengths NZ Surface P to shoat at: CH,~ Surface P to shoot at: TOCl6 675fi' 6761' S' 1 6' 824 psi (50% dd) 864 psi 50°to dd) x 659 psi (6Q°1o dd) 692 psi (60% dd) Guns to be used: 3-3/8fl HSD guns loaded 6 SPF 60 degree-phased Charqe: SPD-3125-311 NT3 charges and PX-1 firing head. API tarQet performance: 0.36" entrance hole and 40.25" penetration. Ma~c qun swell in air: 3~635" OD. Alternate PerforatiQns: Top Battom Net Gun Lengths CHaSarface pressure to shoot at: 6798' b828' 30' 1 x 20' and 1 x 10' 750 psi 6761' 6787' 26' 1 x 20' and 1 x 6' 754 si CONTACTS Mickey Mullin: 907-283-1337 (w) Kyle Miranda: 907-283-1370 (w) 907-398-9954 (c) 907-394-8271 (c) Lyndon Ibele: 907-565-3Q42 (w) Clyde Scott: 713-296-2336 (w) 907-748-2819 (c) Ninilchik Operators: 907-260-7660 or 907-567-3248 (Susan Dionne Pad) KGF Operators: ~7-2831305 SD-2 Plug and Perf Procedure MAM Page 4 10/31/2009 ~ ~ Considerations Instructions and Planninq: Typical underbalance is 50% - 6Q%. Use WAM to calculate surface pressure using either N2 or gas. Specify exactly (log and date) what log the depths are from. The tie in will be from the CBL so the field typically correlates the open hole log to the CBL. Determine if the SAFE system will be used and what is required for radio silence. We do not turn off SCADA or disrupt communication on another job if we are using the sa.fe system. We always have everyone turn offtheir cel phones. Depending on how critical the data is from individual zones the well may be shot in a day or could be as little as one zone per day. In some cases we continue perforating only until we reach unload rate so it is critical that the field and office communicate between each run. Always include specific discussion of likely pinch points and try to identify and unusual hazards to ensure they are discussed in the PJSM. SD-2 Plug and Perf Procedure MAM Page 5 10/31/2009 ~~ Q ~ ~ d SARAH rALIN, GOVERNOR ~~ OIL ~ ~ 333 W. 7th AVENUE, SUITE 100 CONSIriR'QATIOI~T CO1~II-><ISSIOIQ ANCHORAGE, ALASKA 99501-3539 PHONE (907) 279-1433 FAX (907)276-7542 Michael Dammeyer PE Marathon Oil Company .. ~ d r'J PO Box 1949 ~~ (,~ I Kenai AK 996 1 1-1 949 Re: Ninilchik Feld, Tyonek Undefined Gas Pool, Susan Dionne #2 Sundry Number: 308-435 Dear Mr. Dammeyer: ~~~" a~~~~~:~ ~~ ~ C ~ ~ 20Q~ Enclosed is the approved Application for Sundry Approval relating to the above referenced well. Please note the conditions of approval set out in the enclosed form. When providing notice for a representative of the Commission to witness any required test, contact the Commission's petroleum field inspector at (90'~ 659-3607 (pager), As provided in AS 31.05.080, within 20 days after written notice of this decision, or such further time as the Commission grants for good cause shown, a person affected by it may file with the Commission an application for rehearing. A request for rehearing is considered timely if it is received by 4:30 PM on the 23rd day following the date of this letter, or the next working day if the 23rd day falls on a holiday or weekend. A person may not appeal a Commission decision to Superior Court unless rehearing has been requested. Sincerely, Daniel T. Seamount, Jr. Chair DATED this ~ day of December, 2008 Encl. U M Marathon MARATHON Oil Company December 1, 2008 Mr. Tom Maunder Alaska Oil & Gas Conservation Commission 333 W 7t" Ave Anchorage, Alaska 99501 Reference: 10-403 Application of Sundry Approvals Field: Ninilchik Unit Well: Susan Dionne #2 Dear Mr. Maunder: • Marathon Oil Company Alaska Asset Team P.O. Box 1949 Kenai, AK 99611 Telephone 907/283-1371 Fax 907/283-1350 a~~. ~fl~ ~~ Attached for your records is the10-403 Application of Sundry Approvals for SD-2 well. Marathon requests permission to isolate the Tyonek T3 sands with a cement plug and reperforate the Tyonek T2 sands along with the potential to perforate the T1 sands pending upon production results. Sand MD TVD ft Perforate T1 6,757' - 6,787' 4,050' - 4,076' 30 Perforate T1 6,798' - 6,828' 4,086' - 4,112' 30 Perforate T1 6,918' - 6,929' 4,193 '- 4,202' 11 Perforate T1 7,292' - 7,316' 4,530' - 4,552' 24 Re erforate T2 7,766 '- 7,826' 4,962' - 5,016' 60 Cement Plu T3 7,926'- 10,500' 5,106' - 7,455' 2,574 Please contact me at (907) 283-1371 if you have any questions or need additional information. Sincerely, • ~.J .~~Gr7/w Kevin J. Skiba Engineering Technician Enclosures: 10-403 Application of Sundry Approvals Operations Summary Well Schematic Proposed Well Schematic cc: AOGCC Houston Well File Kenai Well File KJS JKM ~,p~' , STATE OF ALASKA ~' ~ti'$ • ~$ ALASKA OIL AND GAS CONSERVATION COMMI~N APPLICATION FOR SUNDRY APPROVALS ~~~~ 20 AAC 25.280 ~~ /-z-3-off ~~ ~~~ \a~- 1. Type of Request: Abandon ^ Suspend ^ Operational shutdown ^ Perforate Q , Waiver ^- Other ^ ~ Alter casing ^ Repair well ^ Plug Perforations ^~ ~ Stimulate ^ Time Extension ^ A ~O Change approved program ^ Pull Tubing ^ Perforate New Pool ^ Re-enter Suspended Well ^ .~~ 2. Operator Name: Marathon Oil Company 4. Current Well Class: 5. Permit to Drill Number: ' Development ^ Exploratory ^ 204-107 3. Address: PO Box 1949 Stratigraphic ^ Service ^ 6. API Number: Kenai Alaska, 99611-1949 50-133-20541-00 7. If perforating, closest approach in pool(s) opened by this operation to nearest 8. Well Name and Number: property line where ownership or landownership changes: ~ ^ Susan Dionnne #2 . Spacing Exception Required? Yes No 9. Property Designation: 10. KB Elevation (ft): 11. Field/Pool(s): S~ +~~ ADL-359242, ADL-3592421, &ADL-389180 756' (21' AGL) - Ninilchik Field / Tyonek Pool 12. PRESENT WELL CONDITION SUMMARY ~ Total Depth MD (ft): Total Depth TVD (ft): Effective Depth MD (ft): Effective Depth TVD (ft): Plugs (measured): Junk (measured): 11,094' - 8,007' - 10,580' - 7,528' - 10,580', 10,620', ' NA 8~ 10,770 Casing Length Size MD TVD Burst Collapse Structural 98' 20" 119' 119' 3,060 psi 1,500 psi Conductor Surface 1,906' 9-5/8" 1,927' 1,575' 6,870 psi 4,750 psi Intermediate 5,921' 7" 5,942' 3,420' 7,240 psi 5,410 psi Production 11,073' 4-1 /2" 11,094' 8,007' 8,430 psi 7,500 psi Liner Perforation Depth MD (ft): Perforation Depth TVD (ft): Tubing Size: Tubing Grade: Tubing MD (ft): 7,766' -10,330' 4,962' - 7,299' NA NA NA Packers and SSSV Type: Packers and SSSV MD (ft): Baker 4-1/2" Midstring ZXP Packer 5,733' 13. Attachments: Description Summary of Proposal ^ 14. Well Class after proposed work: Detailed Operations Program ^~ BOP Sketch ^ Exploratory ^ Development Q' Service ^ 15. Estimated Date for 16. Well Status after proposed work: Commencing Operations: December 15, 2008 Oil ^ Gas ^~ ~ Plugged ^ Abandoned ^ 17. Verbal Approval: Date: WAG ^ GINJ ^ WINJ ^ WDSPL ^ Commission Representative: 18. I hereby certify that the foregoing is true and correct to the best of my knowledge. Contact Kevin Skiba (907) 283-1371 Printed Name Michael D. Dammeyer Title Production Engineer Signature Phone Date ~` /'1 (907) 283-1333 December 1, 2008 ~•/ COMMISSION USE ONLY Conditions of approval: Notify Commission so that a representative may witness Sundry Number: 5 Plug Integrity ^ BOP Test ~ Mechanical Integrity Test ^ Location Clearance ^ Other: l~~ ~S`~ C..l 3`~Q ~~s~t- a ~G~'K t,~! ~l ~ 2QD8 Subsequent Form Required: ~~~ APPROVED BY : COMMISSIONER THE COMMISSION Date: I ~ A roved b ~ (~ I , pp y ~~ Form 10-403 Revised 06/2006 :_ Submit in Duplicate • MARATHON • November 15, 2008 Marathon Oil Corporation Field: Ninilchik WBS: W0.08.19110.CAP.001/EXP SUSAN DIONNE # 2 Well Status: 0 MMcf/d @ --- psi (with BPV) and 0 BWPD (TOW 11-15-08). Objective: Cement plug nonproducing existing perforations. Reperforate Tyonek T2. Pending results of the reperf, move uphole and perforate Tyonek T1. Procedure 1. Haul Tanks and Rental Equipment to Location. Make arrangements with ASRC to lay liner and berm around flowback equipment. Deliver diesel fueled man-lift, two light towers, frost fighter heater, and MOFO to location. Deliver MOC flowback tank, gas buster, and 2" SK choke skid to location. Deliver 80-100 bbl freshwater vac truck from ASRC. Deliver clean Rain-for-Rent fluid tank and fill with 500 bbls of 6%KCL water. Deliver 50/50 methanol water tank to location. Steam on Wheels to heat tanks. 2. Remove Back Pressure Valve Well house already removed. MI diesel man-lift. MIRU ABB Vetco with crane truck and lubricator. Hold PJSM. Pressure test lubricator to 2000+ psi with 50/50 methanol water. Remove Back Pressure Valve and bleed off well pressure. 3. Run PT and Tai MIRU Pollard Slickline to run PT and tag. Hold PJSM. RU full lubricator. MU tool string and pull BHA into lubricator. Pressure test lubricator to 2000 psi (MASP+) with 50/50 methanol water. RIH and tag fill (last tag was 10,500' CTM on 5/5/2006). Log PT data while RIH and POOH, RDMO Pollard Slickline. 4. MIRU Coiled Tubing Unit MIRU ASRC crane and BJ 1-3/4" coiled tubing unit, cement pumping unit, and nitrogen unit. Hold PJSM. Install BJ 4-1/16" SK flow cross on 4-1/2" Otis connection on top of swab valve. RU MOC flow back iron to allow circulation of fluids from the flow cross, through the choke skid, to the gas buster and flow-back tank. ASRC crane PU coil tubing BOP's and flange to flow cross. Pressure test BOP's with 50/50 methanol water to 250/4500 psi. Function test BOP accumulator. Submit required BOP Test Report to AOGCC. Displace methanol to tank with 6%KCL water. Stab coil tubing in injector assembly. PU injector head and lubricator with crane. Install dimple-on connector and pull test to 15K. MU injector head and lubricator on top of BOP's. Shell test to 1500 psi. Notify AOGCC James Rego na, 907-793-1236 (24hrs or more) prior to CT BOP Test • • 5. Cement Plug ~ Hold PJSM. Cement plug 10500' - 7926' with 15.8 ppg Class G cement. Pump total of 40 bbls cement at 0.75 -1.0 bpm. Lead cement and trail cement with freshwater. Let cement stand 24 hrs. Use detailed BJ procedure below. 6. Reverse Jet Well Dry with Nitrogen Hold PJSM. Cool down nitrogen unit and pressure test lines and check valve to 250/4500 psi with KCL water. Bleed off pressure and displace water to flowback tank with nitrogen. Take initial fluid tank straps and calculate volume of fluid to recover to 7926' MD. RIH with coiled tubing to tag cement top. Pull up and begin reverse jet nitrogen down 4-1/2" casing annulus and up 1-3/4" coil to jet all of the fluid from the hole to the flowback tank. Follow BJ Services reverse jetting procedure. When jetting complete, leave 1200 psi nitrogen in hole. POOH with coiled tubing. RD BJ Services Coiled Tubing Equipment, stay on location for possible reverse jet on top of CIBP after reperf. Release Nitrogen Unit. Detailed BJ Procedure to Cement Plug 10500' - 7926' and Reverse Jet: 1. MIRU CTU and pumping units. 2. RU pumping iron as needed. RU return iron for conventional and reverse circulation returns 3. WHA to include 4-1 4. PU injector and add BHA. Nipple up injector to WHA. Toolstring will consist of 1- 3/4" (WT = 0.125") dimple-on connector, 1-3/4" X 3' Straight Bar, and Cementing Nozzle. 5. Insure the high pressure surface filter is removed from pumping iron. 6. Function test BOP 7. Load CTU w/ 50/50. 8. Pressure test surface iron (250 psi/5000 psi). 9. Pressure test WHA and BOP (250/4500 psi) 10. Open WHA and RIH pumping minimum rate 6% KCl water to load wellbore. 11. RIH to top of PBTD @ 10500'. Pull test & record pickup weight. 12. Break circulation to surface. Continue to circulate bottoms up while blending cement 13. Blend 40 BBL of cement. 14. SURFACE RETURNS DURING CEMENT PUMPING AND PLACEMENT SHOULD BE MONITORED AND RECORDED BY REGULAR TANK STRAPS IN A METERED AND MEASURED FLOWBACK TANK SEPARATE FROM MAIN FLOWBACK TANK. A 60 BBL TANK WOULD BE THE OPTIMUM SIZE WITH EITHER BARREL MARKERS EASILY VIEWED INSIDE TANK OR A KNOWN BARREL/INCH SPECIFICATION SO THAT A MEASURED STICK CAN BE USED. 15. Circulate cement to end of CTU (String #26609 Capacity = 27.57 BBL) taking returns at surface. Spot cement using following volume schedule Stage Volume BBL) Pumu Rate Fresh Water 2.0 1.0 BPM Cement 40 1.0 BPM Fresh Water 9.0 1.0 BPM SD 2 Cement Plug and Perf -Kyle Miranda 12/1/2008 7:27:49 AM • 16. Spot cement to the end of tubing chase with 9 bbls fresh water spacer followed by 6% KCL. 17. Pump 2 bbls & begin PUH @ 67 FPM leaving ~ 100' of cement above the nozzle while PUH. 18. Lay in a total of 40 bbls of cement. 19. Stop pump w/ a total of 27.57 BBL of fluids pumped behind cement. CT depth @ this time should be 7,926' (+/- 25'). 20. PUH to 7,700'. 21. Cycle pipe 3 -~ times from 7,700 - 7,725. 22. Start circulation at 1 bbl/min 23. Pull out of hole @ 120 FPM. WOC 24 hrs. 24. After 24 hrs pressure test to Marathon specifications. 25. If pressure holds, RIH to 3000' circulating at 100 FPM & 1 bpm 6% KCL. 26. Cool down N2 pump start reverse circulating Nitrogen @ 3000' 27. When N2 pump is cooled down start N2 @ 1000 SCFM hold in hole at 3000'. Strap & record return tank volumes to verify fluid return volumes after reverse circulation. Surface returns at 3000' = 45.7 BBL + CT Volume (27.2 BBL) = 72.9 BBL 28. When N2 turns the corner decrease N2 rate to 350 SCFM and continue pumping RIH @ 100 FPM to 7800'. 29. DO NOT exceed 2000 psi WHP at any time during reverse circulation procedures to minimize CT collapse potential.. Prefered wellhead working pressure is 1500 psi 30. RIH 800' at a time allowing hole to cleanup with N2 returns to surface until bottom is tagged. 31. @ 7200' reduce RIH speed to 25 FPM until tag bottom @ 7926'. 32. Surface returns at 7926' =120.6 BBL + CT Volume (27.57 BBL) =148.2 BBL 33. When returns swap to straight N2 SI choke manifold to trap N2 pressure at WH. 34. POOH @ 120 FPM 35. Apply prescribed pressure on well as per Marathon specifications if any. 36. Vent CT pressure to flowback tank. 37. Consult with Marathon before rigging down SD 2 Cement Plug and Perf -Kyle Miranda 12/1/2008 7:27:49 AM • 7. Reperforate 7700' Sand MIRU Expro E-line service to reperforate. Hold PJSM. RU full lubricator and pressure test to 2000 psi (HASP+) with 50/50 methanol water. Well at 1200 psi (underbalanced at 40% DD). Reperforation Summary: Top Bottom Net Gun Lengths N~ Surface pressure to shoot at: CH.~ Surface pressure to shoot at: 7786' 7826' 40' 2 x 20' tandem 1190 psi -- 7766' 7786' 20' 1 x 20' 1180 psi 1250 psi *zone initially perforated 12/3 - 12/5/04 and cement squeezed 4/12/06). Guns to be used: Charge: API target performance: Max dun swell in air: Cast Iron Brid eg Plug: Cement prep: 3-3/8" HSD guns loaded 6 SPF 60 degree-phased SPD-3125-311NT3 charges and PX-1 firing head. 0.36" entrance hole and 40.25" penetration. 3.635" OD. 3.50" OD, Part No. PLG 3500-001, Setting Range 3.826 - 4.090" 30' (0.46 bbl) of 15.8 ppg Class G Cement Detail: RIH with dummy guns to minimum depth needed for CCL correlation. POOH. a.) RIH with 40' of guns in tandem, type shown above. Correlate Expro CBL/GR/CCL log depth to open-hole logs. Pull up and shoot 7786' - 7826' (OH) at 1190 psi N2. Leave well shut in for 15 minutes while POOH. Observe and note pressure build rate over 15 minutes. LD spent perf gun. b.) RIH with 20' of guns, type shown above. Correlate Expro CBL/GR/CCL log depth to open-hole logs. Pull up and shoot 7766' - 7786' (OH) at 1180 psi NZ / 1250 psi methane. Leave well shut in for 15 minutes while POOH. Observe and note pressure build rate over 15 minutes. LD spent perf gun. c.) If results are favorable and rate is observed, flow well to sales and monitor. MO BJ services, RDMO Expro. If results are unfavorable and no rate is observed determine pressure change. If increase in pressure run PLT and determine plan forward. If no change or a decrease in pressure is observed, MU l OK Cast Iron Bridge Plug 3.50" OD Part No. PLG-3500-001. RIH with CIBP and setting tool and set at depth 7736' (collar at 7749'). Note water level when running CIBP. Mix 30' (0.46 bbl) of 15.8 ppg class G cement and MU 2" dump bailer. RIH and dump 30' cement on top of CIBP. POOH. Continue dumping cement until 30' has been dropped. RDMO Expro. Let cement stand 24hrs. d.) Remove water: If less than 1000' of water above CIBP MIRU Pollard Slickline unit to bail down to 7700'. If water level is more than 1000' above CIBP, MIRU BJ Coil Tubing and Nitrogen unit to reverse jet using same procedure as above. Leave 1100 psi NZ on wellhead. If NZ in well, observe pressure over 15 minutes to ensure CIBP and cement holding. Continue with step #8. SD 2 Cement Plug and Perf -Kyle Miranda 12/1/2008 7:27:49 AM ~J • 8. Add Perforations: Tyonek T1 If results to step #7 above are unfavorable and CIBP was set, continue with step #8 to add perforations uphole. Hold PJSM. MIRU Expro E-line. RU full lubricator and pressure test to 2000 psi (MASP+) with 50/50 methanol water. Nitrogen on location to pressure up well if needed. Perf Add Summary: Top Bottom Net Gun Lengths NZ Surface pressure to shoot at: CH4 Surface pressure to shoot at: 7292' 7316' 24' 1 x 14' and 1 x 10' 1100 psi 1150 psi 6918' 6929' 11' 1 x 10' 1020 psi 1070 psi 6798' 6828' 30' 1 x 20' and 1 x 10' 1000 psi 1050 psi 6757' 6787' 30' 1 x 20' and 1 x 10' 990 psi 1040 psi Guns to be used: 3-3/8" HSD guns loaded 6 SPF 60 degree-phased Chime: SPD-3125-311NT3 charges and PX-1 firing head. API targetperforrnance: 0.36" entrance hole and 40.25" penetration. Max gun swell in air: 3.635" OD. Detail• RIH with dummy guns to minimum depth needed for CCL correlation. POOH. Perforate following intervals and leave well shut in for 15 minutes to observe pressure buildup after each run: a.) RIH with 24' of guns in tandem, type shown above. Correlate Expro CBL/GR/CCL log depth to open-hole logs. Pull up and shoot 7292' - 7316' (OH) at 1100 psi NZ / 1150 psi methane.* b.) RIH with 10' of guns, type shown above. Correlate Expro CBL/GR/CCL log depth to open-hole logs. Pull up and shoot 6918' - 6929' (OH) at 1020 psi NZ / 1070 psi methane. * c.) RIH with 30' of guns in tandem, type shown above. Correlate Expro CBL/GR/CCL log depth to open-hole logs. Pull up and shoot 6798' - 6828' (OH) at 1000 psi NZ / 1050 psi methane.* d.) RIH with 30' of guns in tandem, type shown above. Correlate Expro CBL/GR/CCL log depth to open-hole logs. Pull up and shoot 6757' - 6787' (OH) at 990 psi NZ / 1040 psi methane.* RDMO Expro. *If results are unfavorable and no rate is observed after shooting any TI zone, determine pressure change. If increase in pressure run PLT and determine plan forward. If no change or a decrease in pressure is observed, prepare to isolate new water bearing zone. Either (A) MIRU BJ services to cement squeeze wet zone, (B) MU Expro patch to set over wet zone, or (C) MU l OK Cast Iron Bridge Plug 3.50" OD Part No. PLG-3500-001. RIH with CIBP and setting tool and set at depth 50' above top of perfs. Note water level when running CIBP. Mix 30' (0.46 bbl) of 15.8 ppg class G cement and MU 2" dump bailer. RIH and dump 30' cement on top of CIBP. POOH. Continue dumping cement until 30' has been dropped. RDMO Expro. Let cement stand 24hrs. SD 2 Cement Plug and Perf -Kyle Miranda 12/1/2008 7:27:49 AM • SD =2 PERFS Bottom Hole wlethane Nina eu Pressure ; a' Surface Press Swface Press gHT Measrued De th TVD SBHP 60'0 10°~ 60°o UD 10°o nn 60~e DD 10`'o DCr To Bottom Foota a To Bottom 0.169 DD DU Gas ~a~.57 Gas •a'.57 ~'a .dr•.967 Gas •x•.967 7786 7826 40 4980 5016 2352 941 1411 1253 1191 105 7766 7786 20 4961 4979 2335 934 1401 ~ 1245 1184 105 7292 7316 24 4530 4552 2135 854 1281 1151 1097 100 6918 6929 11 4192 4202 1971 788 1182 1071 1024 96 6757 6828 71 4049 4112 1929 771 1157 1051 1005 95 CONTACTS Ken Walsh: 907-283-1311 (w) Kyle Miranda: 907-283-1370 (w) 907-394-3060 (c) 907-394-8271 (c) Lyndon Ibele: 907-565-3042 (w) Clyde Scott: 713-296-2336 (w) 907-748-2819 (c) Ninilchik Operators: 907-260-7660 or 907-567-3248 (Susan Dionne Pad) KGF Operators: 907-2831305 SD 2 Cement Plug and Perf-Kyle Miranda 12/1/2008 7:27:49 AM 50.133.20547-00-00 Des: ADL 35924211 ADL 389180 va ion: 156' (21' AGL) k dd.03.09646.CAP.CMP 213,017.13 Zone 4 2,236,705.03 Zone 4 7/29/2004 8N 912004 :leased: OO:OOhrS 8/2612004 Injection Nipple, top at 2400' w/tlouble check valve and ru Baker 4112" Midstring ZXP Packer. Packer top ~ 5,733' MD/3,290'TVD. M MAIRATN OM Conductor 20" K-55 133 ppf Top Bottom MD 0' 119' TVD 0' 119' 2-1/4" hole, cmt w/ 420 sks (188 bbls) 12 ppg :lass G with 40 bbls to surface. Bumped plug, loafs held. SD # 2 Tyonek P erfora tions Measured D~th - - - To '~ Bottom Footage fi7GG~-~--7a86`--~9' -4~f6`-- 7~B?6'- 9-7-2i,.._.-97?9' --- ~-924`- 945 i0 9,729' 9,745' 16' Total VeR. De~ ~-- TOg. _. Bottom -4;962'-• - 6;150 r_ 6;7_81' _ 6,752' I 6,767 - _T , Gun Size ~ ~ l ~ Sio= ~~ 3-318" _ SPF - _.: ~__ 6 - -- Perf Date S z Date 4213104--41'1-2166 --t2/5f04-•-4112ftf 4!21!06 4124/06 -YIi29104 _4124!06 516/06 _ - ~ rr 4121i06 4!24!06 10,0091 10,031' 22' 7,006' - 7,026' i 3-318" 6 _ 11/17/04 10,064' 1 10,099' 35' ' 7,056' I 7,088' 3-3/8" 6 11/17/04 10,099' 10,140' --. 41' 7,088' - -- . ._ 7,125' 3-318" 6 11/16/04 _ 10,161 10,181' 20' 7,145 r _ 7,163' 3-3/8" 6 : - 11116104', 10,242' 10,302' 60' 7,219' 7,273' 3-318" 6 __ 11/3104 10,302' 10,330' 28' 7,273' 7,299' 3-318" 6 ~ 1112/04 Isolated with Brid a Plu s Class II Perforations 10,671", 10,707" 36' 7,612' i 7,6 46' 3-3/8" ~ 6 F.,°~a,u~Kmm..,w 10,796' ' 10,854' S8' ~ _ 7,728' _ _ 7,782' 3.318" 6 Well Name & Number: Susan Dionne # 2 Lease: Ninilchik Unit Coun or Parish: Kenai Peninsula Borou h State: Alaska Count USA Perforations MD : 9,729' - 10,854' Perforations ND : 5,355' - 7,799' An le KOP and De the Avera a 2.16°1100 ft 250' MD to 3,073' MD An le Perforations: 25° - 21.5° Dated Com leted: 121612004 Com letion Fluid: Prepared by: Kevin Skiba Last Revison Date: 4/112008 • Susan Dionne 2 Ninilchik Unit 219' FSL, 1,418' FEL Sec. 6, T1 S, R13W, S.M. BHL: 330' FSL, 1210' FEL, Sec. 31, T1N, R13W, SM 50-133-20541-00-00 Des: ADL 359242/1 ADL 389180 :v lion: 156' (21' AGL) k: dd.03.09646.CAP.CMP 213,017.13 Zone 4 2,236,705.03 Zone 4 712 912 0 0 4 8!^~ 9'2004 ele; scu-. OO:OOhrs 8/26/2004 '~ # Susan Dionne 2 Ninilchik Unit Proposed 219' FSL, 1,418' FEL Sec. 6, T1S, R13W, S.M. KOP: 250' MD/TVD .Build: 4.0°1100' Hold: 63.5° from 2,200'-5,000' MD ',, DfOp; 2.4°/100' to 25° from 5,000'-7,206' MD 'Inclination at TD: 20° Azimu h: 331° to 5,500' MD & 310° to TD 7" x 4-1/2" annulus filled with 9.7 ppg mud. M Mar~nroN Conductor 20" K-55 133 ppf Top Bottom MD 0' 119' TVD 0' 119' ',114" OD 0.049" wall Chemical ',,injection string tied into Chemical ~, ',injection Nipple, tap at 2400' ',wltlouble check valve and rupture discs ~- Baker 4112" Midstring ZXP Packer. Packer top @ 5,733' MD/3,290'TVD. 9-518" L-80 47 ppf Mod Butt Top Bottom MD 0' 1,927' TVD 0' 1,575' l" hole, cmt w/ 420 sks (188 bbls) 12 ppg G with 40 bbls to surface. Bumped plug, held. Intermediate Casing 7" L-80 26 ppf Mod Butt Top Bottom MD 0' 5,942' TVD 0' 3,420' 8-1/2" hole, cmt w1250 sks (110 bbls) 12.5 ppg class G lead, followed by 162 sks (34 bbls) 15.8 ppg class G tail. 20 bbls of cmt to surface. Bumped plug, floats held. Squeeze broke down ~ Acid (HCL/HF) sgzed (a2a06) 4-1/2" L-80 12.6 ppf Mod Butt Top Bottom MD 0' 11,094' TVD 0' 8,007' 4.112" Short Joint Locations: ~ 6,904' - 6,925' MO 7•• hole, cmt w/ 724 sks (215 bbls)13.5 ppg. Displaced ~ 8,536' - 8,557' MD wl 168 bbls of 6 % KCL water. Bumped plug w/ 3,230 - psi. Applied pressure to 3,700 psi to set midstring packer 8 to 4,500 psi to ensure set. No cmt to surface Cleaned fill to: 10,500' CTM (515/06) - T1 Weatherford Retrievable Bridge Plugs: T1 ~ ~- T1 -10,580' MD (P-Test to 2000 psi surface _ T1 w/KCL water) T2 -10,618' MD (would not test) T2 T2 Both plugs rated to 7500 psi above & ~ T2 10,000 psi from below. T3 T3 T3 10K Cast torn Bridge Plug T3 10,770' MD T3 T3 (To of float collar) _ T3 p 10 970' MD 17 890' TVD ,~ T3 , , T3 T3 TD PBTD 11,094' MD 10,580' MD T3 8,007' TVD 7,528' TVD T3 SD # 2 Tyonek P erforations Measured De th Total Vert. Depth' T B om Foota a To Bottom ~'~~ Gun Size ' PF Perf D z D e 6,757' 6,787' 30' 4,050' 4,076' 33/8" 6 Pro osed 6,798' 6,828' 30' 4,086' 4,112' 3-3/8" 6 Pro osed 6,918' 6,929' 11' 4,193' 4,202' 33/8" 6 Pro osed 7,292' 7,316' 24' 4,530' 4,552' 3-3/8" 6 Pro osed 7,766' 7,786' 20' 4,962' 4,980' 3-3/8" 6 Pro osed _ _ x12/06 7,786' ~. 7,826' 40' --4 920' ~ 5,016' 3-318" 6 Y - Proposed r_ --~ _ ..-4;980' - - -- Y15104 ~ 4112106 - ?T2T~T -~ T2 ~ i , __ -$755'- __ - i2lfOti 4/2x06 ' __ _- ~ , 0'-_ _-650`- _ -- , ---- ~'It29104 a2a06 _- _-- - -8-752` ~~7er ~33i6--~ `---~- --SIBf08 4r2>roe al2aos FO-009'~ ~091T -22 ~ H`~oo-- - ~--r;v2 t- - ~3f8"- l --_6 - ~I1tt7f04i r0-oB~ ~Oti99 - -~;EStY - i~8~ r - f 9 St~ 8 -- tlit7f04 - '- ' ~ ' = " ° - = 1t1t81O4 ~ f 181 - 9vTCi - ~ 20 - -~ ~R~ ' r, rv • 3 --y 3-9i6 T-o- -4t{46/04 f - 4B,2wz- -4o;Sv~ -60- 7;349 ' , ' 3/6 T6- 11 3/04 Tniio4 - 7,27-3 - rc99 3. - Isolated with Brid a Plu s (Class II Perforations r-__ BHL: 330' FSL, 1210' FEL, Sec. 31, TIN, R13W, SM Well Name & Number. Susan Dionne # 2 Lease: Ninilchik Unit Coun or Parish: Kenai Peninsula Borou h State: Alaska Count USA Perforetions MD : 9,729' - 10,854' Perforations TVD : 5,355' - 7,799' An le KOP and De the Avera a 2.16°1100 ft 250' MD to 3,073' MD An le Perforations: 25° ~ 21.5° Dated Com leted: 12/6/2004 Com letion Fluid: Revised by: Kevin Skiba Last Revison Date: 11/2612008 M Marathon MARATHON Oil Company April 3, 2008 aPR ~ 4 ~~~~ Mr. Tom Maunder ~ ~ ~ Cam. Alaska Oil & Gas Conservation Commission 333 W 7t" Ave Artc~orage Anchorage, Alaska 99501 Reference: 10-404 Sundry Report Field: Ninilchik Unit ~~~ MAY 2 1 2008 Well: Susan Dionne #2 ~~ ~ p ao Dear Mr. Maunder: Attached for your records is the10-404 Sundry Report for SD-2 well. This sundry covers the work performed under sundry #306-035. Please contact us at (907) 283 -1371 if you have any questions or need additional information. Sincerely, ~;g ~~ ~, Kevin J. Skiba Production Technician Enclosures: 10-404 Sundry Report cc: Houston Well File Operation Summary Kenai Well File Current Well Schematic KJS KDW i Marathon Oil Company Alaska Asset Team P.O. Box 1949 Kenai, AK 99611 Telephone 907/283-1371 Fax 907/283-1350 ~GC~~~~ STATE OF ALASKA v ~~~~~ AL/A OIL AND GAS CONSERVATION COMMrSSION APR 0 4 2008 REPORT OF SUNDRY WELL OPERATION~~a Oil & Gas Cons. Commission e.-,.h,,..,,.., 1. Operations Abandon Repair Well Plug Perforations Stimulate y~ Other Performed: Alter Casing ^ Pull Tubing ^ Perforate New Pool ^ ``^ Time Extension ^ Change Approved Program ^ Operat. Shutdown ^ Perforate ~ Re-enter Suspended Well ^ 2. Operator Marathon Oil Company 4. Well Class Before Work: 5. Permit to Drill Number: Name: Development^ Exploratory^ 204-107 - 3. Address: PO BOX 1949 Stratigraphic ^ Service ^ 6. API Number: Kenai Alaska, 99611-1949 50-133-20541-00 7. KB Elevation (ft): 9. Well Name and Number: 156'' Susan Dionne #2 ' 8. Property Designation: 10. FieldlPool(s): ADL 359242/1 8~ ADL 389180 Ninilchik Unit / Tyonek Pool 11. Present Well Condition Summary: Total Depth measured 11,094' MD ~ feet Plugs (measured) 10580', 10618', & 10770' true vertical 8,007' ND ~ feet Junk (measured) NA Effective Depth measured 10,500' ° feet true vertical 7,528' ' feet Casing Length Size MD TVD Burst Collapse Structural 98' 20" 119' 199' 3,060 psi 1,500 psi Conductor Surface 1,906' 9-518" 1,927' 1,575' 6,870 psi 4,750 psi Intermediate 5,921' 7" 5,942' 3,420' 7,240 psi 5,410 psi Production 11,073' 4-1/2" 11,094' 8,007' 8,430 psi 7,500 psi Liner Perforation depth: Measured depth: 9,729' - 10,330' True Vertical depth: 6,752' - 7,299' Tubing: (size, grade, and measured depth) NA NA NA Baker 4-1/2" Midstring Packers and SSSV (type and measured depth) 2.XP Packer 5,733' 12. Stimulation or cement squeeze summary: Intervals treated (measured): L, MAY 2 ~ 2009 Treatment descriptions including volumes used and final pressure: 13. Representative Daily Average Production or Injection Data Oil-Bbl Gas-Mcf Water-Bbl Casing Pressure Tubing Pressure Prior to well operation: 0 0 0 3 NA Subsequent to operation: 0 0 0 3 NA 14. Attachments: 15. Well Class after work: Copies of Logs and Surveys Run Exploratory ^ Development Q Service ^ Daily Report of Well Operations X 16. Well Status after work: Oil^ Gas ^~ WAG ^ GINJ ^ WINJ ^ WDSPL ^ 17. I hereby certify that the foregoing is true and correct to the best of my knowledge. Sundry Number or N/A if C.O. Exempt: 306-035 Contact Kevin Skiba (907) 283-1371 Printed Name Wayne E. Cissell Title Work Over Supervisor c., Signature ,,,~ Phone (907) 283-1311 Date April 3, 2008 r Form 10-404 Revised 04/2006 ~) N A L ~,~'~ Submit Original Only ;~.y, ~...~' Marathon Oil Company Page 16 of 31 Operations Summary Report Legal Well Name: SUSAN DIONNE 2 Common Well Name: SUSAN DIONNE 2 Spud Date: 7/29/2002 Event Name: ORIGINAL COMPLETION Start: 9/17/2004 End: Contractor Name: GLACIER DRILLLING Rig Release: Group: Rig Name: GLACIER DRILLING Rig Number: 1 Date From - To Hours Code Code Phase I Description of Operations 12/8/2006 08:00 - 08:30 I 0.50 SAFETY Ml tu_ WRLN 08:30 - 10:00 I 1.501 RURD I ELEC I WRLN 12/14/2006 108:00 - 08:30 I 0.50 ~ SAFETYI MTG_ ~ WRLN 08:30 - 10:30 I 2.00 I RURD_I ELEC ~ WRLN 10:30 - 12:30 I 2.00 I RUNPUu ELEC ~ WRLN Held PJSM with Expro Wireline and MOC personnel. Filled out and reviewed Safe Work Permit. Began rigging up Expro wireline to run second CBL. SD job and released contractors because well appeared to be flowing. Later diagnostics showed that the Barton flow meter was not reading properly and well was not flowing. Held PJSM with Expro Wireline and MOC personnel. Filled out and reviewed Safe Work Permit. MIRU Expro wireline to run second CBL. MU Pollard check valve to Expro pump-in tee and took to wellhead. MU lubricator and pulled Expro cement mapping tool into lubricator. Took lubricator to to wellhead and pressure tested with 720 psi WHP. MU Pollard hot oil pump line to check valve and pressure test to 2000 psi. RU ASRC vac truck with a full load of 6% KCL water to Pollard hot oiler. RIH with slimhole cement mapping tool to 9900' KB. Correlated depth with Array Induction and SCMT. Calibrated tool. 12:30 - 15:30 3.00 RUNPU ELEC WRLN Logged repeat section from 9900'-9400' KB. Dropped back down to 9900' and logged up to 5600' KB. 15:30 - 16:00 0.50 RUNPU ELEC WRLN POOH with logging tools. Found fluid level at 4245' KB. 16:00 - 17:30 1.50 RURD_ ELEC WRLN RDMO Expro, Pollard, and ASRC. Secured and left well shut in. 3/24/2006 08:00 - 09:00 1.00 SA;ETY MTG CMPFLW Held PJSM with BJ CoilTech, ASRC crane, and MOC personnel. _ Reviewed BJ's JSA for rigging up coil tubing including crane operations. 09:00 - 10:30 1.50 RURD_ COIL CMPFLW MIRU BJ CoilTech coil tubing and nitrogen units. Spotted coil tubing equipment and ASRC crane. Pulled the wellhouse with the crane after cutting the power. Set BJ choke skid. 10:30 - 12:00 1.50 RURD_ COIL CMPFLW R&K delivered and set methanol water tank. ASRC delivered 55 bbls 50:50 methanol water and placed in methanol tank. BJ continued rigging up coil tubing unit. 12:00 - 15:30 3.50 RURD_ COIL CMPFLW ND tree cap flange from the top of the swab valve. Layed out and MU pump and flowback lines. R&K delivered MOC gas buster. Set buster on top of Rain-For-Rent open top tank. Chained and boomered down buster to tank. ASRC roving rousty's made up flowback chicksan lines to choke skid and buster. ASRC vac truck delivered about 950 bbls of 6% KCL water from tanks at GO #4. Finished berming in tanks. 15:30 - 20:00 4.50 RURD_ COIL CMPFLW MU 4-1/16" 5K x 10K spool to top of swab valve. Stabbed coil tubing into injector head. NU 1OK coil tubing BOP. Made final flowback line ~, connections to CT BOP. PU and MU injector head to top of CT BOP. ~ Pumped pig through new 1-314" coil tubing displacing with methanol water. 20:00 - 22:00 2.00 RURD_ COIL CMPFLW Pressure tested pump iron to 200/5500 si and CT BOP and flowback iron to choke skid to 200!4500 psi. LD injector head and installed night cap. 3/25/2006 08:00 - 08:30 0.50 SAFETY MTG_ CMPFLW Held PJSM with BJ CoilTech, ASRC crane, and MOC personnel. Reviewed BJ's JSA for rigging up coil tubing including crane operations and Safe Work Permit. 08:30 - 11:00 2.50 RURD_ COIL CMPFLW Started and warmed up equipment. Cut the end off of the coil and MU coil connector. Pull tested connector to 15000 lbs. MU 3' straight bar, double flappers, and 1.75" OD Tornado wash tool to coil connector. Took injector head to well. 11:00 - 11:30 0.50 RURD_ COIL CMPFLW Shell tested CT BOP to 200/4500 psig. Displaced methanol water from coil tubing with 6% KCL water. Printed: 3/31/2008 1:37:07 PM ~~~, Marathon Oil Company Page 17 of 31 Operations Summary Report Legal Well Name: SUSAN DIONNE 2 Common Well Name: SUSAN DIONNE 2 Spud Date: 7/29/2002 Event Name: ORIGINAL COMPLETION Start: 9/17/2004 End: Contractor Name: GLACIER DRILLLING Rig Release: Group: Rig Name: GLACIER DRILLING Rig Number: 1 Date From - To Hours Code Code:' Phase ! Description of Operations 3/25/2006 11:30 - 12:30 1.00 REPAIR EOIP CMPFLW Shut down to repair ruptured hydraulic hose to BOP. Reported and cleaned up a spill of 1 quart of hydraulic oil. Also had to replace stripping rubber. Opened well with 778 psig SITP. 12:30 - 16:00 3.50 JET_ WTR CMPFLW RIH pumping 6% KCL water at 1.25 BPM. Obtained fluid returns to surface after pumping 29 bbls (fluid top calculated at approximately 2040' KB). Dropped circulating rate to 0.3 BPM minimum while continued RIH. At 10,032' KB lost about 1500 Ibs of string weight when fill. Increased fluid rate to 1.75 BPM and continued RIH at 15 fpm. Jetted sporatic fill all the way down to the top of the retrievable BP t 580' KB CT tagged at 10566'). 16:00 - 20:30 4.50 JET_ WTR_ CMPFLW Dropped 3/8" ball and pumped to bottom to open Tornado Tool. POOH pumping KCL water at 1.75 BPM. 20:30 - 22:00 1.50 JET_ WTR_ CMPFLW Freeze protected lines and pumps with methanol water. Pumped 5 bbls of methanol water into coil tubing and purged with nitrogen. LD injector head and broke out tools. SWIFN. 3/26/2006 08:00 - 08:30 0.50 SAFETY MTG_ SLICK Held PJSM with Expro slickline and MOC personnel. Reviewed JSA for rigging up wirelineJslickline including crane operations and Safe Work Permit. 08:30 - 11:30 ( 3.001 RURD_~ SLIK ~ SLICK 11:30 - 13:30 2.00 RUNPUL SLIK SLICK 13:30 - 15:30 2.00 ~ RUNPUu SLIK ~ SLICK MIRU Expro slickline to retrieve Weatherford straddle packer assem6 set 9721'-9752.3' KB. Spotted equipment. Layed out and MU lubricator. MU spin-on connection to top of CT BOP and WL valve to connection. MU 2-1/8" OD weight bar, oil jars, Spang jars, and GR pulling (shear up) tool baited in Eclipse retrieval adapter. Take lubricator to wellhead and pressure tested to 1000 psi with methanol water. Wellhead pressure was at 0 psi. RIH and latched into the top Weatherford straddle packer assembly. Jarred up four times and sheared off. POOH and PU jar GS tool. RIH with GS (shear down) pulling tool and latched onto the retrieval adaptor and Weatherford straddle packer assembly. Jarred up two times to release top packer. Waited 20 minutes to allow element to relax. POOH and LD Weatherford top packer and 24.5' spacer tube 15:30 - 18:00 2.501 RUNPUu SLIK ~ SLICK 18:00 - 19:30 I 1.501 RUNPULj SLIK ~ SLICK 19:30 - 21:00 1.50 RUNPU~ SLIK SLICK 21:00 - 22:30 1.50 RUNPU SLIK SLICK 22:30 - 23:00 0.50 RURD_ SLIK SLICK 3!27/2006 09:00 - 09:30 0.50 SAFETY MTG_ WRLN 09:30 - 11:00 ~ 1.50 ~ RURD_~ ELEC ~ WRLN RIH with GS (shear down) pulling tool above the Eclipse retrieval adaptor and latched onto the bottom Weatherford straddle packer assembly. Jarred up about 10 times until hydraulic fluid got to hot to operate bi-directional valve. Waited 20 minutes to allow hydraulic oil to cool. Jarred again and packer appeared to release. POOH but did not recover packer. Repinned tool and repaired hydraulic pressure relief RIH with GS pulling tool on slickline assembly. Latched onto retrieval adaptor and jarred repeatedly without success. Decided to shear off of retrieval adaptor. Started to shear down when packer came loose. PUH with packer and pulled tight into perfs at 7766-7826' KB. POOH and LD bottom Weatherford Eclipse packer. LD lubricator and installed night cap on WL valve. Left well shut in for the night. Held PJSM with Expro wireline and MOC personnel. Reviewed JSA for rigging up wireline/slickline including crane operations and Safe Work Permit. MIRU Expro wireline. Spotted wireline unit. Changed out slickline packoff to wireline packoff in wireline valve. PU and MU another section of lubricator. MU 3.75" OD gauge ring and junk basket with Printetl: 3l3V2UU8 1:3 /:Uf F'M ;~ ~' Marathon Oil Company Page 18 of 31 Operations Summary Report Legal Well Name: SUSAN DIONNE 2 Common Well Name: SUSAN DIONNE 2 Spud Date: 7/29/2002 Event Name: ORIGINAL COMPLETION Start: 9/17!2004 End: Contractor Name: GLACIER DRILLLING Rig Release: Group: Rig Name: GLACIER DRILLING Rig Number: 1 Date From - To Hours Code Code Phase Description of Operations 3/27/2006 09:30 - 11:00 1.50 RURD_ ELEC WRLN CCL and pulled into lubricator. Took lubricator to wellhead. Pressure 11:00 - 13:00 2.00 RUNPUu ELEC ~ WRLN 13:00 - 13:30 I 0.501 RUNPUu ELEC I WRLN 13:30 - 15:00 1.501 RUNPUu ELEC I WRLN 15:00 - 16:00 1.00 RUNPU ELEC WRLN 16:00 - 16:30 0.50 RUNPU ELEC WRLN 16:30 - 17:30 1.00 RUNPU ELEC WRLN 17:30 - 18:30 18:30 - 19:30 3/28!2006 07:00 - 08:00 1.00 RUNPU ELEC WRLN 1.00 RURD_ ELEC WRLN 1.00 SAFETY MTG_ CTBG 08:00 - 09:30 ~ 1.50 ~ RURD_ COIL ~ CTBG 09:30 - 10:00 ~ 0.50 ~ SAFETY ~ MTG_ ~ CTBG 10:00 - 11:30 1,50 RURD COIL CTBG 11:30 - 14:00 2.50 RUNPU COIL CTBG 14:00 - 16:00 I 2.001 PUMP_~ WTR_ ~ CTBG tested lubricator to 1000 psi with methanol water. SITP was 100 psi. RIH with GR and junk basket and tapped up three times at 10108' KB (within pert interval, 10064-10140'). Could not pass, so POOH with GR/Junk basket. Reviewed Explosive Checklist with all personnel on location. Went to radio silence. MU 4-1/2" Baker composite BP (3.60" max OD, 10K psi down, 7.5K psi up) and setting tool on CCL. Took lubricator to wellhead. RIH with 4-1/2" Baker composite BP (3.60" max OD, 10K psi down, 7.5K psi up). Tied in depth to the ZXP packer, short jt at 8536-8557', and casing collars on CBL. Set top of composite BP at 9790' KB. PUH logging 2 collars and then RIH and tagged top of BP at the proper depth. POOH with setting tool. Reviewed Explosive Checklist with all personnel on location. Went to radio silence. MU 4-1/2" Baker cement retainer (3.59" max OD, 10K psi up and down) and setting tool on CCL. Took lubricator to wellhead. RIH with 4-1/2" Baker cement retainer. Tied in depth to the ZXP packer, short jt at 8536-8557', and casing collars on CBL. Set top of cement retainer at 9700' KB. PUH logging 2 collars and then RIH and tagged top of cement retainer at the proper depth. POOH and LD setting tool and CCL. LD lubricator and wireline valve. RD Expro and left well shut in. Held PJSM with BJ CoilTech, ASRC crane, and MOC personnel. Reviewed JSA for rigging up wireline/slickline including crane operations and Safe Work Permit. Started and warmed up coil tubing equipment. Spotted lubricator. Removed tree cap and function tested CT BOP. Took injector to wellhead. Held PJSM with BJ Services Cement crew, ASRC vac truck, and MOC personnel. Reviewed BJ's safety form, Safe Work Permit, and operational plan. Loaded CT with 27.8 bbls KCL water. Shell tested CT BOP to 200/30.00 osia with KGL water. RD injector from wellhead. MU Baker coil tubing connector to CT. Pull tested connector to 15,000 lbs. Pressure tested CT connector to 3000 psi. Removed test plug. MU 1.66' spacer tube, 3.80" OD stabilizer, 4.0' spacer tube, and Baker "K-1" Stinger 1AA w/"K1" control unit. Took injector to wellhead and shell tested to 200/3000 psi. Doyles delivered 15 bbls methanol to CT methanol water tank. Opened well noting SITP of 25 psig. RIH with cement retainer stinger on 1-3/4" coil tubing circulating 6% KCL water. Began circulating KCL water at 0.3 BPM after RIH to 300'. Continued RIH and circulating KCL water. With CT at 9674.6' CTM, performed pump pressure tests at rates from 0.25-1.75 BPM. Stung into retainer at 9705.9' CTM and attempted to pump into perfs at 9727-9747' KB. Pressured up to 2500 psi and held solid for 10 minutes. Stung out of retainer noting 4000 Ibs overpull. Circulated at 0.5 BPM with the same pump pressure noted before stinging into the retainer. Tried two more times stinging into retainer, pressuring up to 2000 psi, and stinging out circulating. No change. 16:00 - 18:00 ~ 2.00 ~ RUNPUL~ COIL ~ CTBG ~ POOH with coil tubing and cement retainer stinger. Freeze protected rnntea sisvzuus ~arui rnn ~. ~; Marathon Oil Company Page 19 of 31 Operations Summary Report Legal Well Name: SUSAN DIONNE 2 Common Well Name: SUSAN DIONNE 2 Event Name: ORIGINAL COMPLETION Contractor Name: GLACIER DRILLLING 'Rig Name: GLACIER DRILLING Date From-To .Hours Code Sub ~ Phase Coded 3/28/2006 16:00 - 18:00 2.00 RUNPU COIL CTBG 18:00 - 19:00 ~ 1.00 ~ RURD_~ COIL ~ CTBG ~ 3/30/2006 ~ 08:00 - 08:30 ~ 0.50 ~ SAFETY ~ MTG_ ~ CTBG 08:30 - 10:30 2.00 I RURD_~ COIL ~ CTBG 10:30 - 12:30 2.00 RUNPU COIL CTBG 12:30 - 15:00 2.50 PUMP_ WTR_ CTBG 15:00 - 16:00 16:00 - 16:30 16:30 - 17:30 13/31/2006 107:00 - 07:30 08:30 - 10:00 1.001 RUNPULI COIL I CTBG 0.50 ~ PUMP_~ WTR_ ~ CTBG 1.00 RURD_~ COIL ~ CTBG 0.501 SAFETYI MTG_ ~ CTBG 1.501 RURD (COIL (CTBG Start: 9/17/2004 Rig Release: Rig Number: 1 Spud Date: 7/29/2002 End: Group: Description of Operations coil tubing by displacing the KCL water with methanol water. LD cement stinger assembly. Stinger and seals appeared to have been moving into the cement retainer shifting sleeve (paint gone and lightly scarred on edges). Set back injector head. SWIFN. Plan to discuss options with Team in AM. Held PJSM with BJ CoilTech, ASRC crane, and MOC personnel. Reviewed JSA for rigging up coil tubing including crane operations and Safe Work Permit. Started and warmed up coil tubing equipment. Spotted lubricator. Removed tree cap and function tested CT BOP. Took injector to wellhead. MU 1.66' spacer tube, 3.80" OD stabilizer, 4.0' spacer tube, and Baker "K-1" Stinger 1AA w/"K1" control unit to Baker coil tubing connector. MU injector to wellhead and shell tested to 200/4500 psi with methanol water. Displaced methanol water to tank with 6% KCL water. Opened well noting SITP of 25 psig. RIH with cement retainer stinger on 1-3/4" coil tubing circulating 6% KCL water. Began circulating KCL water at 0.3 BPM after RIH to 300'. Continued RIH and circulating KCL water. With stinger at 9691' CTM, performed pump pressure tests at rates from 0.25-1.75 BPM. Stung into retainer at 9704.5' CTM and attempted to pump into perfs at 9727-9747' KB. Pressured up to 4200 psi and held solid for 10 minutes. Attempted pressuring up to 4000 psi and surging back three times without success. Stung out of retainer noting 4000 Ibs overpull. Attempted to circulate but coil tubing was plugged. Could not clear plug with 3500 psi. POOH and shut in tree valves. Dislodged plug in end of stinger at 650 psi by applying pressure up the coil tubing (reverse). Circulated a full coil tubing volume conventionally to ensure that coil was clear. Displaced KCL water in coil tubing with methanol water for freeze protection. RD lubricator and LD cement stinger assembly. The cement retainer stinger was coated with fine formation sand. Appears that the problem has been that formation fill in the cement retainer was not allowing the control valve on the cement retainer to shift open. LD lubricator and injector head. Left well shut in overnight. Plan to run a small jetting stinger to clean out the fill in the cement retainer and spot a thick 5 bbl pill above the retainer. Will then run cement stinger, establish an injection rate, and cement squeeze the 9727-9747' perfs tomorrow. Held PJSM with BJ CoilTech, ASRC crane, and MOC personnel. Reviewed JSA for rigging up coil tubing including crane operations and Safe Work Permit. Started and warmed up coil tubing equipment. Spotted lubricator. Removed tree cap and function tested CT BOP. Took injector to wellhead. MU 1.66' spacer tube, 3.80" OD stabilizer, 4.0' spacer tube, and Baker cement retainer washout stinger to Baker coil tubing connector. MU injector to wellhead and attempted to shell test but top Bowen connection of lubricator leaking. Replaced O-rings on Bowen connection. MU washout assembly again. Shell tested successfully to 200/4500 si. Displaced methanol water to tank with 6% KCL water. BJ Services cement crew on location. Held PJSM and began mixing Flovis sweep at 2 #/bbl gel loading. rrin[ea:.vsvzv~° -i;a~:v~ rm ``e..w' \,~„/ Marathon Oil Company Page 20 of 31 Operations Summary Report Legal Well Name: Common Well Name: Event Name: Contractor Name: Rig Name: Date .From - To 3/31/2006 10:00 - 12:30 SUSAN DIONNE 2 SUSAN DIONNE 2 ORIGINAL COMPLETION GLACIER DRILLLING GLACIER DRILLING Hours Code Code Phase 2.501 RUNPULICOIL (CTBG Spud Date: 7/29/2002 Start: 9/17/2004 End: Rig Release: Group: Rig Number: 1 Description of Operations Opened well noting SITP of 166 psig. RIH with wash stinger on 1-3/4" coil tubing circulating 6% KCL water. ASRC vac truck hauled off 150 bbls KCL water. NOTE: Estimate from tank gauge volumes that we have recovered 70 bbls additional water from perfs at 7766-7826' KB after setting the cement retainer. 12:30 - 14:00 1.50 PUMP WTR CTBG 14:00 - 15:30 1.50 RUNPU COIL CTBG 15:30 - 16:00 0.50 RUNPU COIL CTBG 16:00 - 19:00 ~ 3.00 ~ PUMP_~ WTR_ ~ CTBG 19:00 - 20:00 20:00 - 22:30 22:30 - 23:30 4/4/2006 07:30 - 08:00 08:00 - 08:30 08:30 - 09:00 09:00 - 11:00 11:00 - 13:30 1.001 RUNPULICOIL (CTBG 2.50 ~ JET_ ~ N2_ ~ CTBG 1.001 RURD I COIL ICTBG 0.501 SAFETY ~ MTG_ ~ CTBG 0.50 ~ SAFETY ~ MTG_ ~ CTBG 0.50 SAFETY MTG_ CTBG 2.00 RURD COIL CTBG 2.501 RURD icOIL (CTBG retainer at 9707.5' KB (3' deeper than last run . Pressured up from 2400 psi to 4000 psi after RIH to 9708' KB. Circulated in and out of retainer with stinger three times. Pumped 20 bbl Flovis polymer sweep (2 #/bbl gel loading), 47.5 bbls KCL water, 5 bbl Flovis pill (3 #/bbl), and 28.5 bbls KCL water. PUH while spotting_ POOH circulating KCL water at 1.75 BPM. Set back lubricator and LD wash stinger. Wash stinger had frac sand coating the centralizer. `MU cement retainer stinger. MU lubricator to wellhead and shell tested to 200/4500 psi with KCL water. RIH circulating KCL water at minimum rate of 0.3 BPM. Tagged top of cement retainer at 9704.5'. Slacked off to -SK and latched into retainer. Pressured up to 4000 psi-held solid without any leakoff. Tried stinging in and attempting to establish injection eight times. On the third time, the stinger latched with a very slow leakoff at 2500, 3500, and 4200 psi. Stung out and tried to circulate out frac sand. Could not get latched back in until the last attempt. Pumped coil tubing up to 2500 psi but had steady returns to surface. Appears that the seals on the stinger have become cut by the frac sand. PUH to place coil tubing above top perforations. Shut in annulus and established injection rates and pressures into the pert interval, 7766-7826' KB, with KCL water. Pressures and rates: 120 psi @ 0.5 BPM, 285 psi @ 0.75 BPM, 410 psi @ 1.0 BPM, 515 psi @ 1.25 BPM, 630 psi @ 1.5 BPM, and 750 psi @ 1.75 BPM. Pumped a total of 15 bbls KCL water into perfs during injection test. RIH with coil tubing to top of the cement retainer. Cooled down the nitrogen pump. Jetted well dry with nitrogen while POOH. Recovered 160 bbls water from jetting well. Trapped 1000 psi surface nitrogen pressure on well. SWIFN. LD cement stinger tool assembly, lubricator, and injector head. Closed and manually locked CT blind rams. Installed night cap. Plan to begin flow testing well in the AM with drawdown limits of 987 psi with nitrogen and 835 psi with methane. Held PJSM with BJ CoilTech, ASRC crane, and MOC personnel. Reviewed JSA for rigging up coil tubing including crane operations and Safe Work Permit. BJ CoilTech injury. Worker twisted his left knee while walking down the VMT (fluid van) steps. Sent worker into Central Peninsula Hospital for diagnosis. Held safety meeting to refocus and reassess hazards. Started and warmed up coil tubing equipment. Gauged all fluid tanks. Removed night cap on CT BOP. Prepared VMT to mix Flovis sweeps and send KCL water to CT fluid pumper. MU lubricator. Took injector to wellhead. MU Baker dual flapper, hydraulic disconnect, dual circ sub, XO, boot basket, stabilizer, XO, 2-7/8" VIP motor, and 5-bladed junk mill to Baker coil tubing connector. MU injector to wellhead and attempted to shell test but top Bowen connection of lubricator leaking. Wind was too strong to continue Page 21 of 31 Marathon Oil Company Operations Summary Report Legal Well Name: SUSAN DIONNE 2 Common Well Name: SUSAN DIONNE 2 Event Name: ORIGINAL COMPLETION Contractor Name: GLACIER DRILLLING Rig Name: GLACIER DRILLING Date From - To Hours Code Code Phase 4/4!2006 11:00 - 13:30 2.50 RURD_ COIL CTBG 13:30 - 15:00 1.50 RURD.. _ COIL CTBG 4/5/2006 107:00 - 08:00 08:00 - 09:00 1.00 ~ SAFETY ~ MTG_ ~ CTBG 1.001 RURD (COIL (CTBG 09:00 - 10:30 1.50 ~ RURD_ COIL ~ CTBG 10:30 - 14:30 I 4.00 RUNPUI~ COIL ~ CTBG 14:30 - 17:00 17:00 - 17:30 14/6/2006 07:00 - 08:00 08:00 - 10:30 10:30 - 12:00 2.50 RUNPU~COIL CTBG 0.50 RURD COIL CTBG 1.00 ~ SAFETY ~ MTG_ ~ WRLN 2.501 RURD ELEC WRLN 1.501 RUNPUU ELEC I WRLN 12:00 - 12:30 0.50 ~ RUNPUU ELEC ~ WRLN 12:30 - 15:00 ~ 2.50 ~ RUNPUU ELEC ~ WRLN Spud Date: 7/29/2002 Start: 9/17/2004 End: Rig Release: Group: Rig Number: 1 ~L-~ Description of Operations operations. LD milling tool string and lubricator. LD injector head. Installed night cap on top of CT BOP. SWIFN. Held PJSM with BJ CoilTech, ASRC crane, and MOC personnel. Reviewed JSA for rigging up coil tubing including crane operations and Safe Work Permit. Started and warmed up coil tubing equipment. Removed night cap on CT BOP. Prepared VMT to mix Flovis sweeps and send slick KCL water to CT fluid pumper. PU and took injector head to well. Displaced methanol water from coil tubing with KCL water. PU and MU lubricator section to injector head. Shell tested to 200/4500 osi. Took lubricator from wellhead. MU additional lubricator. Took injector to wellhead. MU Baker dual flapper, hydraulic disconnect, dual circ sub, XO, boot basket, stabilizer, XO, 2-7/8" VIP motor, and 3.80" OD 5-bladed junk mill to Baker coil tubing connector. MU injector to wellhead and shell tested to 200/4500 psi with KCL water. Opened well with 786 psig SITP. RIH with Baker milling assembly on CT pumping slick KCL water at 0.3 BPM. Filled hole with 14 bbls KCL water catching circulation to surface with CT at 4300' KB. Static fluid level calculated at 1144' from surface. RIH and tagged at 9682' CTM (increase in pump pressure and decreased CT weight). PUH to 9658' and brought fluid rate to 2 BPM. Milled down to top of cement retainer at 9702.2' CTM. Milled down to 9702.6' CTM and cement retainer began moving downhole. Pushed cement retainer down to 9791' CTM (on top of composite BP). Pumped 10 bbl. Flovis (2 ppb) sweep and displaced with KCL water. Dropped ball to open circulating sub. Chased ball with another 10 bbl Flovis sweep. Pumped 50 bbls KCL water and another 10 bbl sweep. POOH with milling assembly on CT circulating KCL water at 2 BPM. Displaced KCL water from coil tubing with methanol water. LD milling tool string and lubricator. LD injector head. Installed night cap on top of CT BOP. SWIFN. Boot basket contained several pieces of the cement retainer slips and body. It also contained about a gallon of frac sand. Held PJSM with Expro wireline and MOC personnel. Reviewed JSA for rigging up wireline/slickline including crane operations and Safe Work Permit. MIRU Expro wireline. Spotted wireline unit. MU crossover from BJ CT BOP to wireline Bowen. packoff in wireline valve. PU and MU another section of lubricator. MU 3.75" OD gauge ring and junk basket with CCL and pulled into lubricator. Took lubricator to wellhead. Pressure tested lubricator to 1000 psi with methanol water. SITP was 100 psi. at 9789' KB. POOH with GR/Junk basket. Recovered two small pieces of rubber and one piece of cement retainer slip. LD GR/junk basket and held PJSM to review explosive checklist. Went to radio silence. Mixed 15.8 ppg cement for dump bail run. MU and fill dump bailer with cement. Armed squib on glass disc on bottom of dump bailer. Pulled dump bailer into lubricator and took lubricator to the wellhead. RIH with dump bailer and attempted to dump bail cement on top of the cement retainer that was milled yesterday. POOH with dump bailer and discovered that it had not dumped the cement. Went to radio silence Nrinted: 3i3vzoas ~snui rnn '~'" Marathon Oil Company Page 22 of 31 Operations Summary Report Legal Well Name: SUSAN DIONNE 2 Common Well Name: SUSAN DIONNE 2 Spud Date: 7/29/2002 Event Name: ORIGINAL COMPLETION Start: 9/17/2004 End: Contractor Name: GLACIER DRILLLING Rig Release: Group: Rig Name: GLACIER DRILLING Rig Number: 1 Date From - To Hours Code Code Phase Description of Operations 4/6!2006 12:30 - 15:00 2.50 RUNPU ELEC WRLN and disarmed squib. Dumped cement, rearmed new squib, and loaded new cement into bailer. Began to PU bailer when top loading port kinked slightly. LD and disarmed bailer and squib. Examined bent section of bailer and decided to discontinue operations. Unloaded cement from bailer. 15:00 - 16:00 1.00 RURD_ ELEC WRLN RD Expro to go directly to the GDR #1 for wireline correlation run. 4/7/2006 07:00 - 07:30 0.50 SAFETY MTG_ WRLN Held PJSM with Expro wireline and MOC personnel. Reviewed JSA for rigging up wireline/slickline including crane operations and Safe Work Permit. 07:30 - 08:45 1.25 RURD_ ELEC WRLN Spotted Expro wireline unit. PJSM to review explosive checklist. Went to radio silence. Mixed 15.8 ppg cement for dump bail run. MU and fill 10' section of 3.5" OD dump bailer with cement. Armed squib on glass disc on bottom of dump bailer. Pulled dump bailer into lubricator and took lubricator to the wellhead. SITP at 0 prig in am. 08:45 - 10:30 1.75 RUNPU ELEC WRLN RIH with dump bailer and dumped -- 7' of cement on top of the cement retainer that was milled on 4!4/2006. POOH with dump bailer. Dump bailer worked properly. 10:30 - 11:00 0.50 RUNPU ELEC WRLN Reviewed Explosive Checklist with all personnel on location. Went to radio silence. MU 4-1/2" Baker cement retainer (3.59" max OD, 10K psi up and down) and setting tool on CCL. Took lubricator to wellhead. 11:00 - 13:30 2.50 RUNPU ELEC WRLN RIH with 4-1/2" Baker cement retainer. Tied in depth to the ZXP packer, short jt at 8536-8557, and casing collars on CBL. Set top of cement retainer at 9710' KB. PUH logging 2 collars and then RIH and tagged top of cement retainer at the proper depth. POOH and LD setting tool and CCL. 13:30 - 14:00 0.50 RURD_ ELEC WRLN RD Expro. Plan to cement squeeze the perfs at 9727-9747' and set a composite BP below the perfs at 7766-7826' KB tomorrow. 4/8/2006 07:00 - 08:00 1.00 SAFETY MTG_ CTBG Held PJSM with BJ CoilTech, ASRC crane, and MOC personnel. Reviewed JSA for rigging up coil tubing including crane operations and Safe Work Permit. 08:00 - 09:00 1.00 RURD_ COIL CTBG Started and warmed up coil tubing equipment. Removed night cap on CT BOP. Prepared VMT to mix cement and rerouted KCL water line to CT fluid pumper. PU and took injector head to well. Performed 14-dav `CT BOP function and pressure test OK. 09:00 - 11:00 2.00 RURD_ COIL CTBG Displaced methano water from coil tubing with KCL water. PU and MU lubricator sections to injector head. MU Baker 1.66' spacer tube, 3.80" OD stabilizer, 4.0' spacer tube, and Baker "K-1" Stinger 1AA wJ"K1" control unit to Baker coil tubing connector. Took lubricator to wellhead. Shell tested to 200/4500 psi. 11:00 - 13:30 2.50 RUNPU COIL CTBG Opened well noting SITP of 0 psig. RIH with cement retainer stinger on 1-3/4" coil tubing circulating 6% KCL water to 9571' CTM. Recorded pump pressures at rates from 0.25 to 1.75 BPM. Stopped pumping and RIH and stung into the cement retainer at 9718.5' CTM. 13:30 - 14:00 0.50 PUMP_ WTR CTBG Attem ted to establish a 0.25 BPM in'ection rate into erfs at 9727-9747' KB. Pressured u to 3000 si and bled off to 2400 si in 4 min. Bled off pressure slowly and pressured back up several times with the same result. No circulation to surface indicating that stinger is stung in and seals are holding. Slight flow back up coil tubing when pressure bled off. 14:00 - 15:30 1.50 RUNPU COIL CTBG Tried but could not sting out of retainer. Tried pulling up to max CT pull of 40,000 Ibs four times without success. Pressured up coil tubing to 2500 psi to help push while pulling 40K without success. Set slips with 30K tension and waited one hour. Released pipe slips-pipe still stuck. Printed: 3/31/2008 1:37:07 PM ~....~,' Marathon Oil Company Page 23 of 31 Operations Summary Report Legal Well Name: S USAN DIONNE 2 Common W ell Name: S USAN DIONNE 2 Spud Date: 7/29/2002 Event Nam e: ORIGINA L COM PLETI ON Start: 9/17/2004 End: Contractor Name: GLACIE R DRILL LING Rig Release: Group: Rig Name: GLACIE R DRILL ING Rig Number: 1 'Date From - To Hours Code ~ Cod ' Phase Description of Operations . e 4/8/2006 15:30 - 16:00 0.50 RUNPU COIL CTBG Pulled max pull of 40K slacking off to string weight ten times without success. Slacked off to -6K, pulled to 40K, and pressured up coil tubing to 2100 psi when stinger released. Circulated coil tubing at 0.5 and 1.0 BPM at same pump pressures recorded before stinging into the retainer. 16:00 - 17:30 1.50 RUNPU COIL CTBG POOH with coil tubing and stinger assembly. Discussed recommendations to set composite BP below upper perfs for cement squeeze with Kenai and Houston. LD Baker cement retainer stinger assembly. Found a piece of cement retainer slip about 8" Iona and 0.5 inches wide bent in two and wrapped around the to of the bows rin cen ra izer. 17:30 - 18:00 0.50 RURD_ COIL CTBG RD CT lubricator and injector head. Held PJSM with Expro and MOC personnel to review hazards and Safe Work Permit. 18:00 - 18:30 0.50 RURD_ ELEC WRLN MIRU Expro wireline unit. MU wireline valve and lubricator. 18:30 - 19:00 0.50 RUNPU ELEC WRLN Reviewed Explosive Checklist with all personnel on location. Went to radio silence. MU 4-1/2" Baker composite BP (3.60" max OD, 10K psi down, 7.5K psi up) and setting tool on CCL. Took lubricator to wellhead. 19:00 - 20:00 1.00 RUNPU ELEC WRLN RIH wit - .60" max OD, 10K psi down, 7.5K psi up). Tied in depth to the ZXP packer, short jt at 6900', and casing collars on CBL. Set top of composite BP at 7840' KB. PUH logging 2 collars and then RIH and tagged top of BP at the proper depth. 20:00 - 20:30 0.50 RUNPU ELEC WRLN POOH and LD setting tool. 20:30 - 21:30 1.00 RURD_ ELEC WRLN RD Expro wireline. 4/9/2006 09:00 - 10:00 1.00 SAFETY MTG_ CTBG Held PJSM with BJ CoilTech, ASRC crane, and MOC personnel. Reviewed JSA for rigging up coil tubing including crane operations and Safe Work Permit. BJ Safety representatives conducted a safety audit of coil tubing equipment and procedures. 10:00 - 11:30 1.50 RURD_ COIL CTBG Started and warmed up coil tubing equipment. Removed night cap on CT BOP. Prepared VMT to mix cement and transfer to CT pump truck. MU lubricator to injector head. MU cementing nozzle to coil connector. PU and took injector head to well. Shell tested BOP and lubricator 200/4500 psi. Opened well with 18 psi SITP. 11:30 - 14:00 2.50 RUNPU COIL CTBG RIH with CT circulating 6% KCL water at minimum rate of 0.3 BPM. Recorded pump pressures at rates from 0.3 to 1.75 BPM with CT at 7701' CTM. Shut in the annulus and injected 2 bbls 6% KCL water into perfs at 1.5 BPM, 2200 psi pump pressure, and 560 psi WHP. RIH and tagged top of composite BP at 7837' CTM. 14:00 - 14:30 0.50 SAFETY MTG_ CTBG Held second PJSM with BJ coil/cement crews and ASRC vac truck driver to discuss hazards, communication, and operational plan. 14:30 - 15:30 1.00 PUMP_ CMT_ CTBG Mixed 50 sks (10.4 bbls) of 15.8 ppg Class G cement with additives to rove a an - our um time. Mixe 20 bbls of Biozan polymer for ' cement contamination. 15:30 - 18:00 2.50 PUMP_ CMT_ CTBG With end of coil tubing nozzle at 7835' CTM, pumped 5 bbls fresh water spacer, 10.4 bbls 15.8 ppg cement, and 1 bbl fresh water. Displaced with 19 bbls 6% KCL water. Pumped an additional 8 bbls of 6% KCL water while PUH to 7216' at 80 f m to la cement balanced plug. PUH to cycle pipe 4X between 7155-7125'. PUH to 7000' and loa a ole with KCL water. Shut in the annulus. Pumped 8.0 bbls Biozan down CT to achieve a running squeeze to 1400 psi surface squeeze pressure. Shut down pumping and pressure fell to leve o around 700 psi in 15 minutes. Pumped 0.5 bbls Biozan to bring pressure up to Nrintea: ~isiiluua i:3r:ui rnn ~:, ,~, Marathon Oil Company Page 24 of 31 Operations Summary Report Legal Well Name: SUSAN DIONNE 2 Common Well Name: SUSAN DIONNE 2 Spud Date: 7/29/2002 Event Name: ORIGINAL COMPLETION Start: 9/17/2004 End: Contractor Name: GLACIER DRILLLING Rig Release: Group: Rig Name: GLACIER DRILLING Rig Number: 1 Date From.- To Hours Code Code Phase Description of Operations 4/9/2006 15:30 - 18:00 2.50 PUMP_ CMT_ CTBG 1300 psi. Waited 15 minutes and pressure leveled out at 1100 psi. 18:00 - 20:00 2.00 PUMP_ CMT_ CTBG 20:00 - 21:30 1.50 RUNPU COIL CTBG 21:30 - 22:30 1.00 RURD_ COIL CTBG 4/12/2006 07:00 - 07:30 0.50 SAFETY MTG_ CTBG 07:30 - 10:00 I 2.501 RURD_~ COIL ~ CTBG 10:00 - 13:00 13:00 - 14:45 14:45 - 16:30 16:30 - 17:30 3.OOI RUNPULICOIL (CTBG 1.75 RUNPU COIL CTBG 1.75 RUNPU COIL CTBG 1.00 PUMP CMT CTBG 17:30 - 18:00 0.50 SAFETY MTG_ CTBG 18:00 - 19:00 1.00 PUMP_ CMT_ CTBG Pumped .25 bbls Biozan to bring pressure up to 1300 psi. Pressure leveled off at 1240 psi after 15 minutes. Held squeeze pressure for an additional 30 minutes. Bled off pressure and circulated 11.25 bbls Biozan. RIH circulating at 1.0 BPM placing Biozan across -720' casing interval containing cement. PUH circulating remaining Biozan across the same interval. PUH to 7100' and circulated bottoms up at 1.75 BPM with KCL water until returns were clean. POOH with CT pumping KCL water at 1.5 BPM. Displaced KCL water in CT with methanol water to freeze protect string and flowback lines. LD injector head and lubricator. SWIFN. Held PJSM with BJ CoilTech, ASRC crane, and MOC personnel. Reviewed JSA for rigging up coil tubing including crane operations and Safe Work Permit. Started and warmed up coil tubing equipment. Removed night cap on CT BOP. Prepared VMT to send slick KCL water to CT fluid pumper. PU and took injector head to well. MU additional lubricator. Took injector to wellhead. MU Baker dual flapper, hydraulic disconnect, dual circ sub, XO, stabilizer, XO, 2-7/8" VIP motor, and 3.80" OD 5-bladed junk mill to Baker coil tubing connector. MU injector to wellhead and shell tested to 200/4500 psi with methanol water. Displaced methanol water from coil tubing with KCL water. Opened well with 0 psig SITP. RIH with Baker milling assembly on CT to 7012' CTM (above perfs) pumping slick KCL water at 0.3 BPM. Pressure tested cement squeeze to 2600 psi-Held OK for 5 minutes. Took pressure test up to 3100 psi and squeeze broke down. Pressure bled off to 165 p ~n~ mi" notes. Bled all pressure off well and waited 10 minutes. Pressured back up to 2000 psi and shut down pumping. Pressure bled to 1670 psi in 10 minutes and 1500 psii in 20 minutes. Called to discuss options. Decided to cement squeeze perfs again. RIH with motor and mill to tag top of composite BP at 9847' CTM. Did not encounter any cement stringers. POOH with motor and mill. LD milling assembly and a portion of the lubricator. PU cementing nozzle and MU to coil connector. Shell tested lubricator. RIH with CT circulating 6% KCL water at minimum rate of 0.3 BPM. RIH and tagged top of composite BP at 7849' CTM. PUH to 7846' CTM. ,A/lixed 25 sks (5.0 bbls) of 15.8 ppg Class G cement with additives to cement contamination. Held second PJSM with BJ coil/cement crews and ASRC vac truck driver to discuss hazards, communication, and operational plan. With end of coil tubing nozzle at 7846' CTM, pumped 5 bbls fresh water spacer, 5 bbls 15.8 ppg cement, and 1 bbl fresh water. Displaced with 21.4 bbls 6% KCL water and 4.25 bbls Biozan. Stopped pumping and PUH to cycle pipe 4X between 7496-7518'. PUH to 7400' and loaded hole with KCL water. Shut in the annulus. Pumped 0.79 bbls Biozan down CT to achieve a running squeeze to 1400 psi surface squeeze pressure. Shut down pumping and pressure fell and leveled off at 1329 psi. Held 1329 psi squeeze pressure for one hour. Bled off pressure slowly and pumped remaining 4.0 bbls Biozan. rnntea: aiavzw° -i:ai:u~ rm Marathon Oil Company Page 25 of 31 Operations Summary Report Legal Well Name: S USAN DIONNE 2 Common W ell Name: S USAN DIONNE 2 Spud Date: 7/29/2002 Event Nam e: ORIGINA L COM PLETI ON Start: 9/17/2004 End: Contractor Name: GLACIE R DRILL LING Rig Release: Group: Rig Name: GLACIE R DRILL ING Rig Number: 1 Date From - To Hours Code Phase ~ Description of Operations Code 4/12/2006 19:00 - 21:00 2.00 PUMP_ CMT_ CTBG RIH circulating at 1.0 BPM placing Biozan across -360' casing interval containing cement. PUH circulating remaining Biozan across the same interval. PUH to 7500' and circulated bottoms up at 2.0 BPM with KCL water until returns were clean. Added 150# cement retarder to flowback tank. 21:00 - 22:30 1.50 RUNPU COIL CTBG POOH with CT pumping KCL water at 1.5 BPM. Displaced KCL water in CT with methanol water to freeze protect string and flowback lines. 22:30 - 23:30 1.00 RURD_ COIL CTBG LD injector head and lubricator. SWIFN. 4/14/2006 07:00 - 08:00 1.00 SAFETY MTG_ CTBG Held PJSM with BJ CoilTech, ASRC crane, and MOC personnel. Reviewed JSA for rigging up coil tubing including crane operations and Safe Work Permit. 08:00 - 09:30 1.50 RURD_ COIL CTBG Started and warmed up coil tubing equipment. Removed night cap on CT BOP. Prepared VMT to send slick KCL water to CT fluid pumper. PU and took injector head to well. MU additional lubricator. Took injector to wellhead. MU Baker dual flapper, hydraulic disconnect, dual circ sub, XO, stabilizer, XO, 2-7/8" VIP motor, and 3.80" OD 5-bladed junk mill to Baker coil tubing connector. MU injector to wellhead and attempted to shell test but top Bowen connection leaked. 09:30 - 10:30 1.00 RURD_ COIL CTBG Tried bleeding off pressure and repositioning the lubricator several times but Bowen connection leaking. Displaced methanol water from coil tubing with KCL water. ASRC vac truck hauled off three loads (about 190 bbls of water from flowback tank). 10:30 - 12:00 1.50 RURD_ COIL CTBG LD CT drilling assembly and lubricator. Replaced scarred O-ring in top Bowen connection. MU drilling assembly and lubricator again. Took lubricator to wellhead. Shell tested lubricator and CT BOP to 200/4500 si wi 12:00 - 15:30 3.50 DRILL_ CMT_ CTBG RIH with Baker milling assembly on CT pumping slick KCL water at 0.3 BPM to tag top of cement at 7756' CTM. Drilled hard cement from 7756-7835' CTM circulating 6% KCL water at 2.0 BPM and 1900 psi pump pressure. Cycled mill through perforations three times while circulating. PUH to place mill at 7734' CTM. 15:30 - 17:00 1.50 RUNPU COIL CTBG Pressure tested cement squeeze to 2000 psi and pressure bled off to 1750 si in 1 min., 1400 psi in 10 min., and to 1250 psi in 15 min. ', Ensured that all surface pump and return valves were holding. Called to discuss options. Decided to cement squeeze perfs again on 4/17/2006. 17:00 - 18:00 1.00 RUNPU COIL CTBG POOH with motor and mill. LD milling assembly and lubricator. 18:00 - 19:30 1.50 RURD_ COIL CTBG Took injector head to well. Displaced KCL water in CT with methanol water. LD injector head and secured well. 4!1812006 07:00 - 07:30 0.50 SAFETY MTG_ CTBG Held PJSM with BJ CoilTech, ASRC crane, and MOC personnel. Reviewed JSA for rigging up coil tubing including crane operations and Safe Work Permit. 07:30 - 09:00 1.50 RURD_ COIL CTBG Started and warmed up coil tubing equipment. Removed night cap on CT BOP. Prepared VMT to mix cement and Biozan and transfer to CT pump truck. MU lubricator to injector head. MU cementing nozzle to coil connector. PU and took injector head to well. Shell tested BOP and lubricator 200/4500 psi. Opened well with 0 psi SITP. 09:00 - 09:30 0.50 RURD_ COIL CTBG Displaced methanol water from coil tubing with 6% KCL water. Filled hole with 5.5 bbls KCL water. Shut in choke. 09:30 - 10:30 1.00 PUMP_ WTR CTBG Attempted in'ection test into cements ueezed erfs at 9727-9747' KB. Brought WHP up to 2450 psig and bled off to 2400 psig in 4 min and to 2225 psig in 30 min. Bled off pressure to flowback tank. Called ~ Anchorage. Decided that a cement resqueeze on the interval Pflntetl: 3/31/2008 1:37:07 PM ~,,..~, Marathon Oil Company Page 26 of 31 Operations Summary Report Legal Well Name: SUSAN DIONNE 2 Common Well Name: SUSAN DIONNE 2 Spud Date: 7/29/2002 Event Name: ORIGINAL COMPLETION Start: 9/17/2004 End: Contractor Name: GLACIER DRILLLING Rig Release: Group: Rig Name: GLACIER DRILLING Rig Number: 1 i Date From - To Hours Cotle Cod Phase Description of Operations 4/18/2006 09:30 - 10:30 1.00 PUMP_ WTR CTBG 7766-7826' KB would not be warranted and that the next ste would be to drill out the to com osite BP and the cement retainer. 10:30 - 13:00 2.50 RURD_ COIL CTBG LD injector head and cement nozzle. Repositioned crane to handle additional lubricator. PU injector head and lubricator while waiting on Baker motor and mill. 13:00 - 13:30 0.50 RURD_ COIL CTBG MU Baker dual flapper, hydraulic disconnect, dual circ sub, XO, boot basket, stabilizer, XO, 2-7/8" VIP motor, and 3.80" OD 5-bladed junk mill to Baker coil tubing connector. MU injector to wellhead and shell tested to 200/4500 psi. 13:30 - 15:00 1.50 RUNPU COIL CTBG RIH with Baker milling assembly on CT pumping slick KCL water at 0.3 BPM to to 15:00 - 17:00 2.00 DRILL_ CMT_ CTBG Drilled hard cement from 7834-7842' CTM circulating 6% KCL water at 2.0 BPM and 1900 psi pump pressure. Milled through composite BP from 7845-7848' CTM in one hour. 17:00 - 20:30 3.50 DRILL_ COIL CTBG Pushed remaining portion of composite BP down to tag top of cement retainer at 9706.6' CTM. Drilled composite BP to 9707.3' CTM. 20:30 - 22:00 1.50 DRILL_ COIL CTBG Drilled cement retainer and pushed down to 9782' CTM. 22:00 - 23:30 1.50 PUMP_ COIL CTBG ~ Dropped ball to open circulating sub. Mixed and pumped 10 bbls of 2.5 Ib/bbl Flovis sweep while circulating bottoms up. 23:30 - 00:00 0.50 RUNPU COIL CTBG POOH while circulating 6% KCL water at 2.5 BPM to 6072' CTM. 00:00 - 00:30 0.50 PUMP_ WTR_ CTBG .Established modest injection rate into pert interval, 9727-9747' KB. Pumped into pe sat 0. PM at 350 psig. Increased rate to 0.5 BPM and pressure was still climbing at 1000 psig. Shut down pumping and pressure bled to 440 psig in 2 min and to 350 psig in 4 min. 00:30 - 01:30 1.00 RUNPU COIL CTBG POOH with milling assembly pumping 6% KCL water at 2.5 BPM. Displaced KCL water in coil tubing with methanol water. SWIFN. 01:30 - 02:30 1.00 RURD_ COIL CTBG LD milling assembly, lubricator, and injector head. 4/22/2006 07:00 - 07:45 0.75 SAFETY MTG_ WRLN Held PJSM with EXPRO and MOC personnel. Obtained Safe Work Permit. 07:45 - 08:45 1.00 RURD_ ELEC WRLN Begin rigging up 08:45 - 09:45 1.00 RUNPU ELEC WRLN Start in hole w/ 3.75" gauge ring /junk basket 09:45 - 11:05 1.33 RUNPU ELEC WRLN Gauge ring set down @ 9587' ELMD. Worked tool through and tagged bottom 9783' ELMD, POOH 11:05 - 11:15 0.17 RURD_ ELEC WRLN Shut in well, bleed off, pick up 2x2' 3 3/8" Squeeze Guns 11:15 - 11:40 0.42 SAFETY MTG_ WRLN Hold explosives safety meeting 11:40 - 11:50 0.17 RURD_ ELEC WRLN Arm Perf Guns 11:50 - 12:30 0.67 RUNPU ELEC WRLN Start in hole w/ (2) 2' squeeze guns. 3' and 5' to CCL 12:30 - 12:50 0.33 RUNPU ELEC WRLN Correlate to short joint 12:50 - 13:05 0.25 PERF_ CSG_ WRLN Correlate and Perf 1st un - ' ~ 13:05 - 14:00 0.92 PERF_ CSG_ WRLN Dro down and Correlate u to shoot 2nd un 9727'-9729'. POOH 14:00 - 15:00 1.00 RURD_ ELEC WRLN OOH. Shut in well and rig down equipment, leave location 4/25/2006 07:00 - 07:30 0.50 SAFETY MTG_ CTBG Held PJSM with BJ CoilTech, ASRC crane, and MOC personnel. Reviewed JSA for rigging up coil tubing including crane operations and Safe Work Permit. 08:30 - 09:30 1.00 PUMP_ WTR_ CTBG Started and warmed up coil tubing equipment. Opened well with 218 psig SICP. Performed injection test into 9727-9747' KB perfs with 6% KCL water at 0. 5 psig , psig), 0.75 BPM (1300 psig), and 1.0 BPM (2000 psig). Shut down at 2000 psig and recorded fall-off pressures of 1000 psig in 1 min, 750 psig in 2 min, and 500 psig in 5 min. Called BJ Services to order acid to be blended and delivered to open up behind-pipe channel. 09:30 - 11:00 1.50 RURD_ COIL CTBG Removed night cap on CT BOP. Prepared VMT to mix cement and Biozan and transfer to CT pump truck. MU lubricator to injector head. Nnnted: ais~rzuus ~:sru~ rn~ ~.r' 1.00 RURD_ COIL CTBG 0.50 SAFETY MTG_ CTBG Marathon Oil Company Page 27 of 31 Operations Summary Report Legal Well Name: Common Well Name: Event Name: Contractor Name: Rig Name: Date From - To SUSAN DIONNE 2 SUSAN DIONNE 2 ORIGINAL COMPLETION GLACIER DRILLLING GLACIER DRILLING Hours Code Sub ~~ phase Code l 4/25/2006 ~ 09:30 - 11:00 ~ 1.50 ~ RURD_ COIL ~ CTBG 11:00 - 11:30 11:30 - 13:00 0.50 PUMP_ WTR_ CTBG 1.50 RUNPU COIL CTBG 13:00 - 14:00 14:00 - 14:30 14:30 - 15:30 15:30 - 17:00 17:00 - 19:30 19:30 - 20:00 20:00 - 22:30 22:30 - 23:00 4/27/2006 107:00 - 07:30 07:30 - 11:00 11:00 - 11:30 1.001 PUMP I ACID I CTBG Spud Date: 7/29/2002 Start: 9/17/2004 End: Rig Release: Group: Rig Number: 1 Description of Operations MU cementing nozzle to coil connector. PU and took injector head to well. Performed 14-day BOP and lubricator test to 200/4500 psi. Displaced methanol water from coil tubing with 6% KCL water. Opened well and RIH with cementing nozzle on coil tubing to 9755' CTM. Weaver Bros delivered 2 bbls of 7-1/2% HCL and 2 bbls of 7-1/2% HCL with 1-1 /2% HF acid. Spot in acid totes and ASRC vac truck with fresh water. Held second PJSM to discuss safety and operational aspects of acid and cement pumping. Pumped 1 bbl of 7-1/2% HCL, 2 bbls of 7-1/2% HCL with 1-112% HF, and 1 bbl of 7-1/2% HCL acid. Displaced acid with 24.4 bbls KCL water to place leading bbl of HCL acid outside of CT and across perfs. PUH with CT to 9700' KB. Squeezed acid into 9727-9747' KB pert interval at 0.3 BPM. Displaced acid with 3 more bbls L water. Pressure climbed to 1100 psig with all of HCLlHF acid into perfs and then broke 1.50 ~ PUMP ~ CMT_ ~ CTBG Circulated bottoms up with KCL water while mixing 10 bbls of 15.8 ppg cement with additives and 20 bbls of Biozan. 2.50 PUMP_ CMT_ CTBG With end of coil tubing nozzle at 9784' CTM (2' above PBTD tag depth), pumped 5 bbls fresh water spacer, 10 bbls 15.8 ppg cement, and 1 bbl fresh water. Displaced with 18.4 bbls 6% KCL water. Pumped an additional 7.6 bbls of 6% KCL water while PUH to 9100' at 80 fpm to lay cement balanced plug. Cycled pipe 4X between 9100-9122'. PUH to 9050' and loaded hole with KCL water. Shut in the annulus. Pumped 1.5 bbls Biozan down CT to achieve a running squeeze to 1900 psi surface squeeze pressure. Shut down pumping and pressure fell to 1860 psi in 15 minutes. Pressure leveled off at 1820 psi after 45 minutes. Maintained 1600 psig while circulating 18.5 bbls Biozan. 0.50 PUMP_ CMT_ CTBG RIH circulating at 1.0 BPM placing Biozan across casing interval , containing cement down to 9710' (17' above top perf). PUH circulating remaining Biozan across the same interval. PUH to 9120' and circulated bottoms up at 1.5 BPM with KCL water until returns were clean. 2.50 RUNPU COIL CTBG POOH with CT pumping KCL water at 1.5 BPM. 0.50 RURD_ COIL CTBG LD injector head and lubricator. Removed coil tubing connector and cut 50' of coil tubing from end of coil to change working spot. SWIFN with 1200 psig left on casing. 0.50 SAFETY MTG_ CTBG Held PJSM with BJ CoilTech, ASRC crane, and MOC personnel. Reviewed JSA for rigging up coil tubing including crane operations and Safe Work Permit. 3.50 RURD_ COIL CTBG Started and warmed up coil tubing equipment. Removed night cap on CT BOP. Prepared VMT to send slick KCL water to CT fluid pumper. PU and took injector head and 8' section of lubricator to well. MU Baker coil tubing connector. Pull tested connector to 20K lbs. MU injector and lubricator to wellhead and shell tested to 200/4500 psi with KCL water. Disconnected from wellhead and PU lubricator. MU Baker dual flapper, hydraulic disconnect, dual circ sub, XO, stabilizer, XO, 2-718" VIP motor, 3.80" OD String Mill, and 3.80" OD 5-bladed junk mill to Baker coil tubing connector. MU injector to wellhead and shell tested to 200/4500 psi with KCL water. Left 1200 psi on lubricator to open tree valves. Opened well with 1175 psig SITP. Bled off pressure to the flowback tank. 0.50 RURD.... COIL CTBG BJ Coiltech coil tubing operator forgot to release the coiled tubing reel Printed: si3vzuos tsrv rna i Marath011 OII Company Page 28 of 31 Operations Summary Report Legal Well Name: S USAN DIONNE 2 Common W ell Name: S USAN DIONNE 2 Spud Date: 7/29/2002 Event Nam e: ORIGINA L COM PLETI ON Start: 9/17/2004 End: Contractor Name: GLACIE R DRILL LING Rig Release: Group: Rig Name: GLACIE R DRILL ING Rig Number: 1 Date From - To Hours Code . Code Phase Description of Operations 4/27/2006 11:00 - 11:30 0.50 RURD_ COIL CTBG brake before starting in the hole with CT. Bent one of the crossmembers on the top of the injector head directly below the pin ear attachment to the goose neck. SWIFN. 11:30 - 14:00 2.50 RURD_ COIL CTBG LD lubricator, milling BHA, and injector head. Pulled coil tubing from injector head. Set injector head and goose neck on stand. Disconnected goose neck from injector head and injector head cage. Sent injector head cage into BJ Service to repair crossmember. Plan to mill out cement and plugs tomorrow. 4/28/2006 07:00 - 07:30 0.50 SAFETY MTG_ CTBG Held PJSM with BJ CoilTech, ASRC crane, and MOC personnel. Reviewed JSA for rigging up coil tubing including crane operations and Safe Work Permit. 07:30 - 11:30 4.00 RURD_ COIL CTBG Started and warmed up coil tubing equipment. Installed repaired injector head cage and attached goose neck to injector head. Stabbed coil tubing into injector head. Took injector head to wellhead. MU 8' section of lubricator. MU Baker coil tubing connector. Pull tested connector to 20K lbs. PU the rest of the lubricator. MU Baker dual flapper, hydraulic disconnect, dual circ sub, XO, stabilizer, XO, 2-7/8" VIP motor, 3.80" OD String Mill, and 3.80" OD 5-bladed junk mill to Baker coil tubing connector. MU injector to wellhead and shell tested to 200!4500 psi with KCL water. Bled off pressure to flowback tank. Opened well with 0 psig SITP. 11:30 - 13:00 1.50 RUNPU COIL CTBG RIH with Baker millin assembl on CT pumping slick KCL water at 0.3 BPM to taq top of cement at 9722' CTM. 13:00 - 16:00 3.00 DRILL_ CMT_ CTBG Drilled hard cement from 9722-9780' CTM circulating 6% KCL water at 2.25 BPM and 2200 psi pump pressure. 16:00 - 17:00 1.00 CIRC_ CFLD CTBG Moved pipe while circulating bottoms up. 17:00 - 17:30 0.50 PUMP_ WTR CTBG Pressure tested cements ueeze across 9727-9747' KB perfs (including 7766-7826' KB perfs) to 1500 psig. Pressure held solid with no leakoff for 10 minutes. Bled off pressure and opened choke. 17:30 - 22:30 5.00 DRILL_ CMT_ CTBG Drilled hard cement from 9780-9788' CTM circulating 6% KCL water at 2.50 BPM and 2200 psi pump pressure. Worked mill through 9788-89' stalling motor multiple times. Milled 9789'-9792' CTM in 1-1/2 hours. Spent another two hours trying to pass 9792' CTM but could not make progress nor stall the motor. Decided to POOH to examine milling BHA. 22:30 - 23:30 1.00 RUNPU COIL CTBG POOH with milling assembly pumping KCL water at 1 BPM. 23:30 - 01:00 1.50 RURD_ COIL CTBG SIWFN. LD and inspected milling assembly. The mill was completely worn and the string mill showed wear on the leading edge. Changed out mill and motor and left string mill out of string. 01:00 - 02:30 1.50 RUNPU COIL CTBG RIH with Baker millin assembl on CT pumping slick KCL water at 0.3 BPM and tagged up at 9793' CTM. Increased pump rate from 0.3 to 2.25 BPM. 02:30 - 05:00 2.50 DRILL_ CMT_ CTBG Stalled motor twice initially but could not move down hole. Tried milling for 1/2 hour without success. Tried slacking off more weight and increasing pump rate to 2.5 BPM without success. Noting about 8K Ibs overpull at 9776' CTM with pumps off but no overpull when pumping. Tried spudding with pumps on and off but could not stall motor. Suspect that the 3.80" OD stabilizer above motor is getting wedged (overtorqued casing collar, cement sheath, debris?) in an area where mill can turn through. 05:00 - 06:00 1.00 RUNPU COIL CTBG POOH with milling assembly pumping KCL water at 1 BPM. Mill looked as fresh as when it was run. Stabilizer showed wear on OD. Plan to remove stabilizer and continue milling on 04/29/2006. rrintea: s~svzuua ~srw rnn ;. I d Legal Well Name: SUSAN DIONNE 2 Common Well Name: SUSAN DIONNE 2 Event Name: ORIGINAL COMPLETION Contractor Name: GLACIER DRILLLING Rig Name: GLACIER DRILLING Date From - To Hours Code Code Phase 4/29/2006 06:00 - 07:00 1.00 RUNPU COIL CTBG 4/30/2006 07:00 - 07:30 0.50 SAFETY MTG_ CTBG 07:30 - 09:30 2.00 I RURD J COIL CTBG 09:30 - 11:30 ~ 2.00 ~ RUNPUI~ COIL ~ CTBG 11:30 - 14:30 ~ 3.00 ~ DRILL_ ~ CMT_ ~ CTBG 14:30 - 16:00 ~ 1.50 ~ RUNPUy COIL ~ CTBG 16:00 - 17:00 1.00 RURD COIL ~ CTBG ~ 5/2/2006 ~ 08:00 - 09:30 ~ 1.50 ~ RURD_ SLIK ~ SLICK 09:30 - 10:00 ~ 0.50 ~ BAIL_ ~ FILL ~ SLICK 10:00 - 11:10 ~ 1.17 ~ BAIL_ ~ FILL ~ SLICK 11:10 - 11:30 ~ 0.33 ~ BAIL_ ~ FILL ~ SLICK 11:30 - 12:30 1.00 BAIL_ FILL SLICK 12:30 - 13:10 0.67 BAIL_ FILL SLICK 13:10 - 13:55 ~ 0.75 ~ DUMPBu CMT_ ~ SLICK 13:55 - RURD_ SLIK SLICK 5/5/2006 08:00 - 08:30 0.50 SAFETY MTG_ WRLN 08:30 - 10:00 1.501 RURD ~ ELEC ~ WRLN 10:00 - 13:00 i 3.00 ~ RUNPUU ELEC ~ WRLN Page 29 of 31 Spud Date: 7/29/2002 Start: 9/17/2004 End: Rig Release: Group: Rig Number: 1 Description of Operations SWIFN. LD milling assembly, lubricator, and injector head. Held PJSM with BJ CoilTech, ASRC crane, and MOC personnel. Reviewed JSA for rigging up coil tubing including crane operations and Safe Work Permit. Started and warmed up coil tubing equipment. PU and took injector head to wellhead. MU lubricator and Baker dual flapper, hydraulic disconnect, dual circ sub, XO, 2-7/8" VIP motor, and 3.80" OD 5-bladed junk mill to Baker coil tubing connector. MU injector and lubricator to wellhead and shell tested to 200/4500 psi with KCL water. Bled off pressure to flowback tank. Opened well with 0 prig SITP. RIH with Baker milling assembly on CT pumping slick KCL water at 0.3 BPM to tag at 9796' CTM. Attempted to mill past 9796' CTM circulating 6% KCL water at 2.50 BPM without success. Tried slacking off up to -4K Ibs, changing pump rates, picking up and running in up to 35 fpm pumping KCL, and dry spudding but could not stall motor. Only time motor stalled is when tried dry spudding and then leaving mill on bottom while bringing pump rate up to 2.5 BPM. POOH with milling assembly. Found one small piece of cement retainer slip trapped in the water course of the mill. Mill was slightly worn on leading OD edges on face and showed slight markings on the face. SWIFN. LD milling assembly, lubricator, and injector head. Installed night cap. PWS MI RU wire line unit. Spot up equipment held PJSM and discussed environmental issues. MU 1.75" tool string with 2.25" pump bailer with 2.5" bottom. PU lubricator and MU to tree. Open up well and RIH. Tagged up at 9782'. KBD. POOH with bailer. OOH check bailer, about a spoon of metal shavings, 1 qt water. Bailer bottom had flat edge, suspect large piece of composite. Break out the pump bailer, MU with the hydrostatic bailer. Take tool sting to well, open up to RIH. RIH tagged up at 9782' KBD, POOH OOH with Hydrastic bailer, did not recover any material in bailer. Mix cement RIH with bailer loaded with Cement. Sat down at 9782' work tools. OOH with bailer, pin sheared. RD unit Held PJSM with Expro wireline and MOC personnel. Reviewed JSA for rigging up wirelineJslickline including crane operations and Safe Work Permit. Spotted Expro wireline unit and crane truck. Removed CT BOP night cap and installed wireline valve, pump-in tee, and lubricator. MU 3.75" OD gauge ring and junk basket to CCL. Took GR, CCL, and grease head to well. MU to lubricator to WL valve. Pressure tested lubricator to 1000 psig with methanol water. Opened well with 50 prig SITP. RIH with GR and junk basket and set down at 2242' WLM. POOH and add a 3.125" OD x 7' weight bar. RIH and set down at 2234'. Could not work past. POOH. Junk basket contained some fine formation sand and drilled cement. Lay down tool string. PU and RIH with a 1-11/16" weight bar, spang jars, and 2.70" OD gauge ring. Set down at 2227' WLM. Worked tools for 45 min. without change in depth. POOH. Marathon Oil Company Operations Summary Report Nnnted: s~svzuua isru~ rM Marathon Oil Company Page 30 of 31 Operations Summary Report Legal Well Name: SUSAN DIONNE 2 Common Well Name: SUSAN DIONNE 2 Spud Date: 7/29/2002 Event Name: ORIGINAL COMPLETION Start: 9/17/2004 End: Contractor Name: GLACIER DRILLLING Rig Release: Group: Rig Name: GLACIER DRILLING Rig Number: 1 Date From - To Hours Code ode Phase Description of Operations 5/5/2006 13:00 - 15:30 2.50 RURD_ ELEC WRLN LD wireline tools and lubricator. MIRU Expro slickline unit. MU lubricator and 3" drive down bailer with spang jars and weight baron slickline. Take lubricator to wellhead. 15:30 - 17:30 2.00 RUNPU SLIK WRLN RIH with DD bailer and tagged at 2213' WLM. Worked bailer down to 2216' and POOH. Dumped about 1 gallon of fine formation sand and drilled cement. RIH and worked bailer down to 2221' WLM. POOH and dumped another gallon of sand and cement. Decided to clean out fill and then 'et well d with coil tubin tomorrow. 17:30 - 18:30 1.00 RURD_ ELEC WRLN RDMO Expro slickline and wireline units. 5/6/2006 07:00 - 07:30 0.50 SAFETY MTG_ CMPFLW Held PJSM with BJ CoilTech, ASRC crane, and MOC personnel. Reviewed BJ's JSA for rigging up coi- tubing including crane operations and Safe Work Permit. 07:30 - 09:00 1.50 RURD_ COIL CMPFLW Started and warmed up equipment. Removed the Baker grapple coil tubing connector and MU BJ dimple-on coil connector. Pull tested connector to 15,000 lbs. MU 3' straight bar, double flappers, hydraulic disconnect, Tornado wash tool, and 2" OD wash nozzle to coil connector. Took injector head to well. 09:00 - 09:30 0.50 RURD_ COIL CMPFLW hell tested CT BOP to 200/4500 si .Opened well with 0 psig SITP. 09:30 - 12:30 3.00 JET_ WTR CMPFLW RIH pumping 6% KCL water at 0.3 BPM. Tagged up at 2236' CTM. Increased pump rate to 1.75 BPM and continued into the hole without problems to 10,500' CTM. ASRC vac truck driver delivered 75 bbls fresh water to clean out the BJ CoilTech VMT unit. 12:30 - 16:30 4.00 JET_ WTR_ CMPFLW Dropped 3/8" ball and pumped to bottom to open Tornado Tool. POOH pumping KCL water at 1.90 BPM. POOH at 90 fpm (10500-6200'), 40 fpm (6200-5300'), 30 fpm (5300-3900'), 25 fpm (3900-2700'), 30 fpm (2700-1800'), 40 fpm (1800-1100'), and 90 fpm (1100-0'). 16:30 - 17:00 0.50 JET_ WTR_ CMPFLW Cooled down nitrogen unit. 17:00 - 21:30 4.50 JET_ WTR_ CMPFLW RIH 'ettin nitro en at 500-750 scfm to unload fluid from welibore. Started pinching back choke by -100 psi each 1000' starting at 3000' CTM. RIH to 10,500' CTM and increased nitrogen rate to 1000 scfm. Circulated on bottom for 15 minutes and then POOH circulating nitrogen at 1000 scfm. Trapped 1240 psig surface nitrogen pressure. 21:30 - 22:30 1.00 RURD_ COIL CMPFLW SWIFN. LD lubricator, jetting assembly, and injector head. 5/7/2006 07:00 - 07:30 0.50 SAFETY MTG_ CMPPRF Held PJSM with Expro wireline and MOC personnel. Reviewed JSA for rigging up wireline/slickline including crane operations and Safe Work Permit. 07:30 - 08:30 1.00 RURD_ ELEC CMPPRF Spotted Expro wireline unit and crane truck. Removed CT BOP night cap and installed wireline valve and pump-in tee. Crane truck electrical/hydraulic problems-can not boom down or run winch line. 08:30 - 10:30 2.00 RURD_ ELEC CMPPRF Troubleshot Expro crane truck problems while waiting on ASRC crane operator. 10:30 - 11:15 0.75 RURD_ ELEC CMPPRF PU lubricator. MU 3.75" OD gauge ring and junk basket to CCL. Took GR, CCL, and grease head to well. MU lubricator to WL valve. Pressure tested lubricator to 2000 psig with water. Opened well with 1480 psig SITP. 11:15 - 13:30 2.25 RUNPU ELEC CMPPRF _RIH with GR and junk basket and set down to 9900' WLM. 13:30 - 14:00 0.50 RUNPU ELEC CMPPRF LD GR and junk basket. Junk basket was empty. Reviewed perforating checklist. Went to radio silence. Armed perforating gun. 14:00 - 16:45 2.75 RUNPU ELEC CMPPRF RIH with 3.375" OD perforating gun loaded 16' with SDP-3125-311 NT3, 25 gm. charges, 6 SPF on CCL. Blew well down to 1100 SITP through gas buster while RIH. Correlated depth with Expro GR-CCL log run Sept-20-2004 and Reeves Induction Log run 20-Aug-2004. 16:45 - 17:45 1.00 RUNPU ELEC CMPPRF Perforated 9729-9745' KB with 1150 psi WHP. WHP remained rnn~e°: sisizuus ror.~~ rnn 4~ ~,, Marathon Oil Company .Page 31 of 31 Operations Summary Report Legal Well Name: SUSAN DIONNE 2 Common Well Name: SUSAN DIONNE 2 Spud Date: 7/29/2002 Event Name: ORIGINAL COMPLETION Start: 9/17/2004 End: Contractor Name: GLACIER DRILLLING Rig Release: Group: Rig Name: GLACIER DRILLING Rig Number: 1 Date From - To Hours Code Code Phase Description of Operations 5/7/2006 16:45 - 17:45 1.00 RUNPU ELEC CMPPRF constant at 1150 psig for 15 minutes. Increased to 1180 psig in 30 minutes. POOH with gun. Left well shut in while POOH. All shots fired and round. 17:45 - 18:30 0.75 RURD_ ELEC CMPPRF RD Expro perforators. Plan to flow nitrogen off to gas buster maintaining no less than 1000 psig FTP. Will turn to sales at 1000 psig FTP. r'rinted: sisvzoos tsruirnn 50-133-20541-00-00 Des: ADL 359242/1 ADL 389180 >vation: 156' (21' AGL) 1: dd.03.09646.CAP.CMP 213,017.13 Zone 4 2,236,705.03 Zone 4 7/29/2004 8119/2004 Susan Dionne 2 Ninilchik Unit 219' FSL, 1,418' FEL Sec. 6, T1 S, R13W, S.M. M MARATNON Conductor 20" K-55 133 ppf Top Bottom MD 0' 119' TVD 0' 119' \ Surface Casino 9-518" L-80 47 ppf Mod Butt Top Bottom 114" OD 0.049" wall Chemical MD 0' 1,927' injection string tied iMO Chemical TVD 0' 1,575' Injection Nipple, top at 2400' w/double check valve and rupture 12-114" hole, cmt wl 420 sks (188 bbls)12 ppg discs class G with 40 bbls to surface. Bumped plug, floats held. Baker 4-1/2" Midstring ZXP Packer. Intermediate Casino Packer top ~ 5,733' MD/3,290?VD . 7" L$0 26 ppf Mod Butt / Top Bottom MD 0' 5,942' TVD 0' 3,420' 8-112" hole, cmt w/ 250 sks (110 bbls)12.5 ppg class G lead, followed by 162 sks (34 bbls)15.8 ppg class G tail. 20 bbls of cmt to surface. Bumped plug floats held. Production Casino 4-112" L$0 12.6 ppf Mod Butt Sqz broke down Top Bottom MD 0' 11,094' TVD 0' 8,007 4-112" Short Joini Locations: ~ 6,904' - 6,925' MD 7" hole, cmt wl 724 sks (215 bbls)13.5 ppg. Displaced 8,536' • 8,557 MD w/ 168 bbls of 6% KCL water. Bumped plug w/ 3,230 psi. Applied pressure to 3,700 psi to set midstring packer 8 to 4,500 psl to ensure set. No cmt to surface SD # 2 Tyonek Perforations Measured De th Total Vert. Depth o Tou ~/,),q~ S D T2 fi766` -7;786 28`- _ #:962'_ #:980` -3.318° -fr 1213 T2 7,786'- - 4;y80' . ...5.018• 3318 -8- 'f4t5 T3 9;72T X729` ~'- 8:750' _ 6:353` 3"3f8°- 4/31/06 4124106 T3 3727` -8, -20` f B,i50 8,787 ~-3I8'- _ 9104 4124/06 T3 9 729' 9,745' 16 ~ 6 752 6,767 3-3/8' 6 516106 T3 g745' 9, -2` 8 787 8,788 3-3/8` _ 4f21/06 4!24106 T3 _ 10,009' 10,031' 22' 7 7,006' 7,026' 3-3/8" 6 _ 11/17104 T3 10,064' 10,099' 35' 7,056' 7,088' _ 3.318" _ _ _ 6 11/17104 ______ T3 10,099' 10,140' 41' 7,088'! 7,125' 3-3/8" 6 11116/04 T3 10,161' 10 181' 20'_ 7,145' 7,163' 3-3/8" 6 __ 11/16104 T3 10,242' 10,302' _ 60' 7,219' 7,273' 3-318" 6 1113!04 T3 10,302' 10,330' 28' 7,273' 7,299' 3-318" 6 11/2/04 Isolated with Brid a Plu s Class II Perforations T3 10,671' 10,707' 36' 7,61 2' 7,646' 3-318"_ _ 6 Pra°auiKZO~mur.d T3 10,796' 10,854' S8' _ _ 7,728' 7,782' 3-318" 6 BHL: 330' FSL, 1210' FEL, Sec. 31, T1N, R13W, SM Well Name 8 Number: Susan Dionne # 2 Lease: Ninilchik Unit Coun or Parish: Kenai Peninsula Borou h State: Alaska Count USA Perforations MD : 9 729' - 10 854' Perforations TVD : 5 355' - 7,799' An le KOP and De the Avera a 2.16°1100 tt 250' MD to 3,073' MD An le Perforations: 25° - 21.5° Dated Com leted: 121612004 Com letion Fluid: Prepared by: Kevin Skiba Last Revison Date: 41112008 r • :..-_~h ~_- r MICROFILMED 03/01/2008 DO NOT PLACE ANY NEW MATERIAL UNDER THIS PAGE F:\LaserFiche\CvrPgs_InsertslMicrofilm Marker.doc C J~ À...\W ì DATA SUBMITTAL COMPLIANCE REPORT 3/13/2007 Permit to Drill 2041070 MD 11094 REQUIRED INFORMATION Samples No -----------------.--. Well Name/No. NINILCHIK UNIT, S DIONNE 2 Operator MARATHON OIL CO API No. 50-133-20541-00-00 TVD 8007 Completion Date 12/6/2004 Completion Status 1-GAS - ----------------- Mud Log No ------ --------- DATA INFORMATION Types Electric or Other Logs Run: Reeves Quad Combo, GR/Cal/Den/Neutron/Sonic/Res; CBL, VDL, CC Well Log Information: Log/ Data Digital Type Med/Frmt CrED-- C Las JRPt '-fLog iLog i Vi Log '-1 Log - ~--------------- Electr Dataset Number Name ---_._~-~--------- 12810 Induction/Resistivity Log Log Scale Media Run No Report: Final Well R 0 Mud Log 2 Col 101 Mud Log 2 Col 101 See Notes 2 Col 101 See Notes 2 Col 101 Well Cores/Samples Information: Name Interval Start Stop Sent Received ADDITIONAL INFORMATION Well Cored? Y /® Chips Received? ~Y 11\1 Analysis Received? Daily History Received? Formation Tops ~.. Comments: ---------------- -----,-. ------------.,,-..- -----------------,-- - ------------ Current Status 1-GAS UIC N - ------------- .-------- ---- Directional Survey Yes -- ----- -------------- -------- ----------------- - -------- -------------. ------------ (data taken from Logs Portion of Master Well Data Maint Interval Start Stop 210 5945 - OH/ CH Received Comments 11/2/2004 GR/CCUNEUTRON/SP/DE N/SONIC/MUD 11/2/2004 EPOCH END OF WELL REPORT 11/2/2004 FORMATION LOG 11/2/2004 FORMATION LOG 11/2/2004 DRILLING DYNAMICS LOG 11094 Open 11/2/2004 DRILLING DYNAMICS LOG 0 11 094 Open 11 094 Open 11094 Open Sample Set Number Comments e 0N (iyN ---------- -- ---------------.- DATA SUBMITTAL COMPLIANCE REPORT 3/13/2007 Permit to Drill 2041070 Well Name/No. NINILCHIK UNIT, S DIONNE 2 Operator MARATHON OIL CO API No. 50-133-20541-00-00 ~~mpn:::: Rev;ewe:~ B007 ~OmPleti'" Date 12/:: Completion Status 1-GAS Current Status 1-GAS UIC N Date: I} f"1.~u&v--o 7 e e .. -- e (tt!. Alaska Asset Team Northern Business Unit Marathon Oil Company P.O. Box 1949 Kenai, AK 99611-1949 Telephone 907/283-1311 Fax 907/283-1350 March 1, 2007 RECEIVED MAR 0 5 Z007 Tom Maunder AOGCC 333 West ¡th Ave Suite 100 Anchorage, AK 99501 Ala$kl Oil & Gas Cons. Comrnissjoo Anchorage Dear Mr. Maunder: Attached and submitted for your records is the Form 10-407 for the completion work performed in the Susan Dionne #2 through December 06, 2004. At that time, no commercial production had been obtained from the completion efforts in this well. These efforts were postponed while the drilling rig drilled the Susan Dionne #3 on the same production pad. Per your direction and interpretation in the memo you emailed to me February 16, 2007, Marathon was directed to submit the Form 10-407 for the completion work up through December 06, 2004. Also attached for your records are the operational history, final directional survey, and well schematic per the work covered by this reporting. After Marathon and its partner decided on how to continue with the completion efforts on this well, work began again in early 2006 under Sundry approval #306-035 and continued into May 2006. This well was shut in as uneconomic at that time waiting on preparation of a supplemental AFE for funding to continue the completion efforts. A Form 10-404 is being finalized at this writing to be submitted for the work under the 2006 sundry approval. An AFE is being prepared and another Form 10-403 request is forthcoming to continue work to make this well a commercial gas producer. If you would like any other information, please contact me at 283-1311 or kdwalsh@marathonoil.com. Sincerely, " n () ¡~J).vJ~ Ken D. Walsh Senior Production Engineer Enclosures: 10-407 Sundry Well Schematic Operations Summaries Directional Survey cc: AOGCC Houston Well File Kenai Well File KDW (; ~ ~ "\a..:.\..tt:IVt:LJ e STATE OF ALASKA e J-?ð'1 MAR 05 2007 ALASKA OIL AND GAS CONSERVATION COMMISSION WELL COMPLETION OR RECOMPLETION REPORT~NOi¡~ons.Commission OilD Gas[] Plugged D AbandonedD SuspendedD WAGD 1b. Well Class: Anchorage 20AAC 25.105 20AAC 25.110 Development [] Exploratory D No. of Completions Other Service D Stratigraphic TestD 5. Date Comp., Susp., or 12. Permit to Drill Number: Aband.: 12/6/2004 204-107 ' 6. Date Spudded: 13. API Number: 7/29/2004 50-133-20541-00' 7. Date TD Reached: 14. Well Name and Number: S/19/2004 Susan Dionne #2 ~ 8. KB Elevation (ft): 15. Field/Pool(s): 156' KB (21' AGL) Ninilchik Unit, 9. Plug Back Depth(MD+ TVD): Tyonek Pool 10,5S0' MD - 7,52S' TVD 10. Total Depth (MD + TVD): 11,094' MD - S,007' TVD 11. Depth Where SSSV Set: NA 19. Water Depth, if Offshore: NA feet MSL Reeves Quad Combo: GR/CaI/Den/Neutron/Sonic/Res; CBL, VDL, CCL CASING, LINER AND CEMENTING RECORD SETTING DEPTH MD SETTING DEPTH TVD TOP BOTTOM TOP BOTTOM HOLE SIZE 0' 119' 0' 199' 0' 1,927' 0' 1,575' 0' 5,942' 0' 3,420' 0' 11,094' 0' S,007' 1a. Well Status: GINJD WINJD WDSPLD 2. Operator Name: Marathon Oil Company 3. Address: PO Box 1949, Kenai Alaska, 99611-1949 4a. Location of Well (Governmental Section): Surface: 219' FSL, 1,418' FEL, Sec. 6, T1S, R13W, S.M.- Top of Productive Horizon: 4361' FSL, 3719' FEL, Sec. 6, T1S, R13W, S.M., Total Depth: 307' FSL, 1358' FEL, Sec. 31, T1 N, R13W, S.M. - 4b. Location of Well (State Base Plane Coordinates): Surface: x- 213,017.13 y- 2,236,705.03 TPI: x- 210,S20.72 y- 2,240,S02.56 Total Depth: x- 209,239.S6 y- 2,242,155.0S 18. Directional Survey: Yes [] No D Zone- 4 Zone- 4 Zone- 4 21. Logs Run: 22. CASING WT. PER FT. 133 47 26 12.6 K-55 L-SO L-SO L-SO GRADE 20" 9-5/S" 7" 4-1/2" 23. Perforations open to Production (MD + TVD of Top and Bottom Interval, Size and Number; if none, state "none"): 7,766' -7,S26' MD (60') 3-3/S" 6 spf 4,962' - 5,016' TVD 9,727' - 9,747' MD (20') 3-3/S" 6 spf 6,750' - 6,76S' TVD 10,009'-10,031' MD (22') 3-3/S" 6 spf 7,006' -7,026' TVD 10,064'-10,140' MD (76') 3-3/S" 6 spf 7,056' -7,125' TVD 10,161'-10,1S1' MD (20') 3-3/S" 6 spf 7,145' -7,163' TVD 10,242'-10,330' MD (SS') 3-3/S" 6 spf 7,219' -7,299' TVD 26. Date First Production: Driven 12-1/4" S-1/2" 7" 24. SIZE 16. Property Designation: / ADL 359242/1 & ADL 389180 17. Land Use Permit: 20. Thickness of Permafrost: NA '" \, c::...C'co--\l "'- -\- .}sa ~ 'f- \ ~ ,s- (~ 1 Co ~~'o( ts-\. ~-Þi-'~;.r~/r' CEMENTING RECORD AMOUNT PULLED NA NA NA NA /420 sacks, 12ppg, class G ~ 250 sacks, 12.5ppg, class G 724 sacks, 13.5ppg, class G TUBING RECORD DEPTH SET (MD) PACKER SET (MD) 25. ACID, FRACTURE, CEMENT SQUEEZE, ETC. DEPTH INTERVAL (MD) AMOUNT AND KIND OF MATERIAL USED 10,671' - 10,707' 37K# 20/40 Sand in X-Link KCL Water PRODUCTION TEST Method of Operation (Flowing, gas lift, etc.): NA Date of Test: Hours Tested: Production for Oil-Bbl: Gas-MCF: Water-Bbl: Test Period -+ Flow Tubing Casing Press: Calculated Oil-Bbl: Gas-MCF: Water-Bbl: Press. 24-Hour Rate ..... 27. CORE DATA Choke Size: IGaS-Oil Ratio: Oil Gravity - API (corr): Brief description of lithology, porosity, fractures, apparent dips and presence of oil, gas or water (attach separate sheet, if necessary). Submit core chips; if none, state "none". None. Form 10-407 Revised 12/2003 '~ta(fJlS 8ft MAR 1, 2 2007 CONTINUED ON REVERSE r'Äcôr:n~·Ü:~r~ë~~~l ¡ ~-fj!ð'¡_ i L..JÆRlF!ED t ~" T- ?~Pl:¡ :;'>~""'."'''-'_.;,'. - .:1 __ ^ k""l~ & 28. GEOLOGIC MARKE. NAME TVD Tyonek 6,335' 3,701' 30. List of Attachments: 29. . FORMATION TESTS Include and briefly su narize test results. List intervals tested, and attach detailed supporting data as necessary. If no tests were conducted, state "None". 10,836' MD Perf: 10,836-10,854'MD (10/6/2004) - N2 cush 900#, no pressure increase 10,816' MD Perf: 10,816-10,836'MD (10/7/2004) - N2 cush 900#, no pressure increase 10,796' MD Perf: 10,796-10,816'MD (10/7/2004) - N2 cush 900#, no pressure increase 10,671' MD Perf: 10,671-10,707'MD (10/8/2004) - N2 cush 900#, no pressure increase -frac'd well on 10/21/2004, well screened out and did not flow 10,302' MD Perf: 10,302-10,330'MD (11/3/2004) - N2 cush 1050#, no significant change in pressure 10,272'MD Perf: 10,272-10,302'MD (11/4/2004) - N2 cush 1100#, no pressure increase and perforating gun was wet 10,242'MD Perf: 10,242-1 0,272'MD (11/4/2004) - N2 cush 1050#, no pressure increase and perforating gun was wet 10,161'MD Perf: 10,161-10,181'MD (11/17/2004) - Perforated with a WHP of 15#; pressure increased to 35# when gun was pulled out of hole 10,099'MD Perf: 10,099-10,140'MD (11/17/2004) - Perforated with a WHP of 0# 10,064'MD Perf: 10,064-10,099'MD (11/18/2004) - Perforated with a WHP of 470#; well flowed 680mcfd @ 180# FTP 1 0,009'MD Perf: 10,009-1 0,034'MD (11/18/2004) - Perforated with a WHP of 420#; WHP increased to 580# in 15 min -well fairly stable flowing 880mcfd @ 450# FTP 9,727'MD Perf: 9,727-9,747'MD (11/30/2004) - Flowed water (communicated w/ coal); patch set 1112004 7,766'MD Perf: 7,766-7,786'MD (12/4/2004) - Flowed water (communicated w/ coal); patch set 12/2004 31. I hereby certify that the foregoing is true and correct to the best of my knowledge. Title: Senior Production Engineer Printed Name: Ken D. Walsh Signature: ~ b. vJ~ Contact: Kevin Skiba (907) 283-1371 Phone: Date: (907) 283-1311 3/1/2007 INSTRUCTIONS General: This form is designed for submitting a complete and correct well completion report and log on all types of lands and leases in Alaska. Submit a well schematic diagram with each 10-407 well completion report and 10-404 well sundry report when the downhole well design is changed. Item 1a: Classification of Service wells: Gas Injection, Water Injection, Water-Alternating-Gas Injection, Salt Water Disposal, Water Supply for Injection, Observation, or Other. Multiple completion is defined as a well producing from more than one pool with production from each pool completely segregated. Each segregated pool is a completion. Item 4b: TPI (Top of Producing Interval). Item 8: The Kelly Bushing elevation in feet above mean low low water. Use same as reference for depth measurements given in other spaces on this form and in any attachments. Item 20: True vertical thickness. Item 13: The API number reported to AOGCC must be 14 digits (ex: 50-029-20123-00-00). Item 22: Attached supplemental records for this well should show the details of any multiple stage cementing and the location of the cementing tool. Form 10-407 Revised 12/2003 Item 23: If this well is completed for sep. production from more than one interval (multiple c.etiOn), so state in item 1, and in item 23 show the producing intervals for only the interval reported in item 26. (Submit a separate form for each additional interval to be separately produced, showing the data pertinent to such interval). Item 26: Method of Operation: Flowing, Gas Lift, Rod Pump, Hydraulic Pump, Submersible, Water Injection, Gas Injection, Shut-in, or Other (explain). Item 27: If no cores taken, indicate "none". Item 29: List all test information. If none, state "None". Form 10-407 Revised 12/2003 X:213,017,13 Zone 4 Y:2,236,705,03 Zone 4 GL: 135' KB: 156' (21' AGLI SPUD: 07129104 TO: 08/1912004 Riq Released: 00:00 hrs 8/2612004 4-112" 12,6 ppf L-80 AB- Mod Butt tbg 7" X 4-1/2" annulus filled with 9,7 PP9 mud, API # 50-133-20541-00 Permit # 204·107 was # OO,03,09646.CAP,CMP Propertv:AOL 959242/1 & AOL 389180 4-1/2" Short Joint Locations: 6904' 6925' MD 8536' - 8557' MD MD (P-Test to 2000 psi 10620' MD (would not test) Both plU9S rated to 7500 psi above and 10000 psi from below, 10K CISP at 10770' MD (Top of float collar) MD/7890' TVD 219' FSL, 1418' FEL, Sec, 6, TiS, R13W, 8M 20" 133 ppf K-55 driven to 119' 1/4" OD 0,049" wall Chemical injection - into Chemical Injection Nipple top at 2400' check valve and rupture discs 7766'-7826'MD (60') 3-3/8" 6 spl 4962'-5016' TVD 9727'-9747'MD (20') 3-3/8" 6 spl 6750'-6768' TVD 10,009'-10,031' MD (22') 3-3/8" 6 spl 7006'-7026' TVD 10,064'-10,140' MD (76') 3-3/8" 6 spl 7056'-7125' TVD MD (20') 3-3/8" 6 spl 7145'-7163' TVD MD (88') 3-3/8" 6 spl 7219'-7299' TVD fill at 10015'MD with Expro P-T tool on 11/15/2005, at 10026' MD and balled down to 10028' MD with on 12/5/2005, 3-3/8" 6 spl Fraced with 37000 ¡bs 0120/40 s;;\l1d 7612'-7646' TVD MD (58') 3-3/8" 6 spl 7728'-7782' TVD BHL: 330' FSL, 1210' FEl, Sec. 31, TiN, R13W, SM e Mr ~ MARATHON Oil Company,SD #2 Susan Dionne, Ninilchik Field,Kenai Peninsula, Alaska MARATHON . Wellbore Name SD#2 Well Name SD#2 Slot .Name SD#2 Installation Name Susan Dionne Fi,ld Name Ninilchik Field Created By Comments I Created 5-AuQ-2004 I Government ID I Grid NorthinQ 2236705.0300 \ Grid EastinQ 213017.1300 Latitude N60 6 47.4215 It SURVEY LISTING Page 1 Well bore: SD #2 Well path: MWD <0-11094> Date Printed: 23-Aug-2004 I Last Revised 22-AuQ-2004 I Last Revised 19-May-2004 I LonQitude W151 34 23.4462 I North 311.33N EastinQ NorthinQ I Coord System Name 2236359.987¡ AK-4 on NORTH AMERICAN DATUM EastinQ J NorthinQ 226657.848 2252005.11 System Name AK-4 on NORTH AMERICAN DATUM 1927 IIi. 8A.KIR HUGMU INTEQ East 1427.16W North AIiQnment True North AliQnment True All data is in Feet unless otherwise stated Coordinates are from Slot MD's are from Rig and TVD's are from Rig (Datum #2 156.0ft above Mean Sea Level) Vertical Section is from O.OON O.OOE on azimuth 324.46 degrees Bottom hole distance is 6631.10 Feet on azimuth 323.91 degrees from Wellhead Calculation method uses Minimum Curvature method Prepared by Baker Hughes Incorporated :e e , M' ~MARA THON Oil Company,SD #2 Susan Dionne, Ninilchik Field,Kenai Peninsula, Alaska MARATHON \- SURVEY LISTING Page 2 Well bore: SD #2 Well path: MWD <0-11094> Date Printed: 23-Aug-2004 Bi. BAKSR HUGHES INTEQ Wéllpath (Gridl·Répöf't MD[ft] Inc[deg] Azi[deg] TVD[ft] North[ft] East[ft] Dogleg Vertical Easting Northing rdea/100ftl Sectionrftl 0.00 0.00 0.00 0.00 O.OON O.OOE 0.00 0.00 213017.1 ~ 2236705.0: 132.00 0.40 23.90 132.00 0.42N 0.19E 0.30 0.23 213017.3~ 2236705.4t 192.00 0.60 10.80 192.0~ 0.92N 0.33E 0.38 0.56 213017 .4£ 2236705.9< 252.00 3.30 346.50 251.9 2.91N 0.01W 4.61 2.38 213017.1f 2236707.9< 312.00 6.20 345.90 311.74 7.73N 1.21W 4.83 6.99 213016.1' 2236712.7! 373.00 7.70 346.20 372.29 14.90N 2.98W 2.46 13.86 213014.5C 2236719.9¡ 433.00 8.70 347.40 431.68 23.23N 4.93W 1.69 21.77 213012.7t 2236728.3, 493.00 12.00 345.60 490.70 33.70N 7.47W 5.53 31.77 213010.4f 2236738.9C 553.00 14.60 340.30 549.08 46.87N 11.58VV 4.78 44.86 213006.6i 2236752.1f 614.00 15.80 337.30 607.95 61.77N 17.37VV 2.35 60.36 213001.2~ 2236767. H 674.00 18.00 336.00 665.36 77.77N 24.30VV 3.72 77.41 212994.6~ 2236783.3¡ 733.00 21.40 335.1 0 720.89 95.87N 32.54VV 5.79 96.92 212986.8£ 2236801.6< 794.00 24.60 332.60 777.04 117.24N 43.07VV 5.48 120.44 212976.8f 2236823.2f 860.00 28.10 330.70 836.17 143.00N 57.00VV 5.45 149.50 212963.5t 2236849.3t 922.00 31.10 330.10 890.08 169.62N 72.13VV 4.86 179.95 212949.0t 2236876.3~ 985.00 33.20 329.70 943.41 198.62N 88.95VV 3.35 213.33 212932.9~ 2236905.7' 1048.0C 33.70 329.60 995.98 228.59N 106.50Vl. 0.80 247.91 212916.1' 2236936.0¡ 1111.0C 34.80 329.40 1048.05 259.14N 124.49V1. 1.76 283.23 212898.8.1 2236967.01 1172.0C 36.80 329.20 1097.52 289.82N 142.71V1. 3.28 318.78 212881.3f 2236998.1f 1235.0C 38.70 329.50 1147.34 323.00N 162.37V1. 3.03 357.21 212862.5C 2237031.8C 1297.00 40.70 328.90 1195.04 357.01 N 182.65V1. 3.28 396.68 212843.0~ 2237066.2¡ 1359.0C 42.30 328.90 1241.47 392.19N 203.87V1. 2.58 437.63 212822.6E 2237101.91 1421.00 45.30 329.50 1286.21 429.05N 225.84V1. 4.88 480.39 212801.5i 2237139.3~ 1484.0C 47.80 330.00 1329.54 468.55N 248.87V1. 4.01 525.93 212779.4~ 2237179.3, 1547.0C 49.70 330.40 1371.07 509.66N 27241~ 3.05 573.06 212756.9~ 2237221.0~ 1609.00 52.20 330.40 1410.1! 551.52N 296.19 4.03 620.94 212734.1f 2237263.4< 1673.00 54.90 330.60 1448.1 596.32N 321 .53 4.23 672.13 212709.8£ 2237308.8: 1735.00 57.40 331.10 1482.6 641.29N 346.61 4.09 723.30 212685.8£ 2237354.31 1797.00 60.10 330.70 1514.8!: 687.60N 372.39V1. 4.39 775.97 212661.2. 2237401.2¡ 1859.00 62.90 331.30 1544.43 735.25N 398.80Vl. 4.60 830.09 212635.9t 2237449.51 1955.0C 62.20 331.70 1588.6£ 810.12N 439.45\1\ 0.82 914.64 212597.0~ 2237525.3, 2078.0C 62.80 330.70 1645.47 905.72N 492.01 VI. 0.87 1022.96 212546.8. 2237622.2C 2202.00 63.30 330.20 1701.67 1001.871\ 546.52V1. 0.54 1132.92 212494.6' 2237719.6~ 2326.0C' 63.20 ~081 1757.49 1098.25"- 601.05V1. 0.44 1243.03 212442.4C 2237817.21 2453.00 64.10 330.5 1813.86 1197.44t\ 656.83V1. 0.74 1356.17 212389.0C 2237917.71 2578.0C 62.80 330.4 1869.73 1294.71t\ 711.98\1\ 1.04 1467.38 212336.1 £ 2238016.3; 2703.00 64.60 330.6 1925.11 1392.24~ 767.15V1. 1.45 1578.81 212283.3.<' 2238115.1 2827.00 63.70 329.8 1979.17 1489.08 822.61\1\ 0.93 1689.84 212230.2' 2238213.2 2952.0C 64.80 329.8 2O~4J 1586.38~ 879.24\1\ 0.88 1801.94 212175.9' 2238311 .81 3077.0C 64.30 329.30 2087.2 1683.68"- 936.44V1. 0.54 1914.3e 212121.0.1 2238410.5~ 3200.00 64.50 329.50 2140.3 1779.16t\ 992.91 VI. 0.22 2024.88 212066.8i 2238507.3 . 3325.00 67.10 329.40 2191.5 1877.34t\ 1050.85\1\ 2.08 2138.45 212011.2i 2238606.8< 3387.0C 66.80 329.10 2215.8!: 192'.37~ 1080.02\1\ 0.66 2195.30 211983.2£ 2238656.5t 3511.0C 66.30 330.10 2265.20 2024.49 1137.59\1\ 0.84 2308.' 21192'·1 2238756.0' 3636.0C 65.90 329.20 2315.8~ 2123.11 1195.33\1\ 0.73 2422.41 211872.6 2238855.9 3760.00 65.20 329.50 2367.1 2220.22 1252.88\1\ 0.61 2534.8 211817.4 2238954.4 3885.0C 64.20 329.20 2420.5 2317.44t\ 1310.49\1\ 0.83 2647.48 211762.1f 2239052.9 4010 OJ 63.70 330.30 24751 2414.44t\ 1367.06\1\ 0.89 2759.30 211707.9< 2239151.3 4134.0 62.90 330.40 2531.2 2510.72t\ 1421.86~ 0.65 2869.49 211655.4t 2239248.8 4258.0 62.20 331.10 2588.3 2606.72t\ 1475.63 0.75 2978.87 211603.9~ 2239346.1 4384.0 61.40 331.20 2647.9 2703.98t\ 1529.21 0.64 3089.16 211552.7 2239444.6~ All data is in Feet unless otherwise stated Coordinates are from Slot MD's are from Rig and TVD's are from Rig ( Datum #2 156.0ft above Mean Sea Level) Vertical Section is from O.OON O.OOE on azimuth 324.46 degrees Bottom hole distance is 6631.10 Feet on azimuth 323.91 degrees from Wellhead Calculation method uses Minimum Curvature method Prepared by Baker Hughes Incorporated e e M' ~ MARA THON Oil Company,SD #2 Susan Dionne, Ninilchik Field,Kenai Peninsula, Alaska MARATHON ... ¡SURVEY LISTING Page 3 Wellbore: SD #2 Well path: MWD <0-11094> Date Printed: 23-Aug-2004 mi. BAKER HUGHES INTEQ WeUøath (GridlR..port MD[ft] Inc[deg] Azi[deg] ! TVD[ft] North[ft] East[ft] J Dogleg Vertical Easting j Northing rdeQ/100ftl Sectionfftl 4508.0 61.30 331.80 2707.35 2799.61 t\" 1581.14 0.43 3197.15 211503.1 2239541.4, 4633.0 63.80 331.20 2764.97 2897.09f\, 1634.071/\ 2.04 3307.24 211452.5C 2239640.1, 4757.0 63.60 331.90 2819.91 2994.82t\ 1687.031/\ 0.53 3417.5~ 211401.8~ 2239739.1 < 4883.0 63.80 331.80 2875.74 3094.42t\ 1740.321/\ 0.17 3529.5 211350.9f 2239839.9~ 5005.0 63.20 332.30 2930.17' 3190.87t\ 1791.491/\ 0.61 3637.7 211302.1. 2239937.6· 5128.0 63.10 332.60 2985.73 3288.16t\ 1842.251/\ 0.23 3746.47 211253.6~ 2240036.m 5252.0 62.30 332.40 3042.60 3385.90t\ 1893.131/\ 0.66 3855.57 211205.1 E 2240135.0' 5313.0 61.40 331.80 3071.38 3433.43t\ 1918.291/\ 1.71 3908.88 211181.1~ 2240183.1 : 5374.00 60.90 331.20 3100.81 3480.39f\, 1943.791/\ 1.19 3961.91 211156.7E 2240230.6, 5437.00 60.40 331.60 3131.69 3528.60f\, 1970.071/\ 0.97 4016.42 211131.6~ 2240279.5C 5499.0~ 60.00 331.00 3162.50 3575.79t\ 1995.911/\ 1.06 4069.8~ 211106.9. 2240327.2¡ 5561.0 58.50 329.30 3194.20 3622.00t\ 2022.421/\ 3.38 4122.85 211081.5. 2240374.1 ~ 5623.00 57.30 329.10 3227.15 3667.12t\ 2049.311/\ 1.95 4175.19 211055.7' 2240419.8E 5685.00 55.20 328.60 3261.59 3711.23f\, 2075.981/\ 3.45 42261 211030.1 C 2240464.6C 5747.00 53.60 328.50 3297.68 3754.24f\, 2102.281/\ 2.58 4276.8 211 004.8~ 2240508.2~ 5810.00 51.70 327.70 3335.90 3796.76t\ 2128.741/\ 3.18 4326.8 21 0979.3~ 2240551 .3! 5872.00 50.40 327.40 3374.88 3837.45t\ 2154.611/\ 2.13 4374.9 210954.5C 2240592.6! 5912.00 50.00 326.60 3400.48 3863.22f\, 2171.341/\ 1.83 4405.69 210938.3f 2240618.8' 5966.00 48.70 326.50 3435.66 3897.40f\, 2193.931/\ 2.41 4446.64 210916.6. 2240653.5~ 6029.00 47.00 326.6g 3477.94 3936.37t\ 2219.671/\ 2.70 4493.31 210891.8' 2240693.0~ 6091.0C 45.70 326.90 3520.7j 3973.89~ 2244.271/\ 2.13 4538.14 210868.1· 2240731 .11 6154.00 42.70 325.10 3565.89 4010.30f\, 2268.811/\ 5.16 4582.03 210844.4! 2240768.1, 6216.00 41.90 323.30 3611.75 4044.15f\, 2293.211/\ 2.34 4623.75 210820.8E 2240802.5~ 6278.00 40.70 321.10 3658.33 4076.48f\, 2318.281/\ 3.04 4664.6~ 210796.5E 2240835.5' 6340.00 39.60 320.0 3705.72 4107.351\, 2343.68V\ 2.11 4704.52 210771.9· 2240866.9, 6402.00 37.40 318.5 3754.2~ 4136.59t\ 2368.861/\ 3.85 4742.ge 210747.4~ 2240896.8' 6464.00 36.10 317.5 3803.92 4164.16t\ 2393.681/\ 2.31 4779.81 210723.2f 2240924.9E 6526.00 34.90 316.6 3854.39 4190.52t\ 2418.201/\ 2.11 4815.51 21 0699.3~ 2240951.8¡ 6589.00 33.70 314.3 3906.44 4215.82f\, 2443.101/\ 2.80 4850.57 210675.1 C 2240977.7! 6651.00 32.20 312.3 3958.47 4238.95~ 2467.631/\ 2.99 4883.65 210651.1~ 2241001.4¡ 6713.00 30.20 310.5 4011.5C 4260.20t\ 2491.711/\ 3.56 4914.94 210627.5E 2241023.3C 6775.00 28.80 309.3 4065.46 4279.79t\ 2515.121/\ 2.45 4944.49 210604.6. 2241043.4< 6837.00 27.10 309.3 4120.22 4298.19t\ 2537.611/\ 2.74 4972.5~ 210582.5f 2241062.31 6899.00 27.20 309.8 4175.39 4316.21 t\ 2559.421/\ 0.40 4999.87 210561.2C 2241080.9' 6961.00 25.30 308.6 4231.00 4333.55t\ 2580.671/\ 3.18 5026.33 210540.3f 2241098.7< 7024.0C 25.60 307.40 4287.88 4350.21 t\ 2602.001/\ 0.95 5052.29 210519.4! 2241115.9' 7086.00 26.10 306.80 4343.68 4366.521\, 2623.561/\ 0.91 5078.091 210498.2f 2241132.7: 7147.0C 26.20 307.20 4398.4~ 4382.70f\, 2645.031/\ 0.33 5103.74 210477.2C 2241149.4' 7210.00 24.30 310.60 4455.42 4399.54f\, 2665.951/\ 3.79 5129.61 210456.61 2241166.7! 7272.00 25.10 309.3~ 4511.74 4416.17f\, 2685.821/\ 1.56 5154.68 210437.2. 2241183.8! 7335.00 25.20 309.3 4568.77 4433.13f\, 2706.541/\ 0.16 5180.53 210416.9' 2241201.3C 7397.0C' 23.30 310.3 4625.3C 4449.43f\, 2726.101/\ 3.14 5205.16 210397.7< , 2241218.0! 7459.0C 23.70 309.30 4682.16 4465.25f\, 2745.101/\ 0.91 5229.07 210379.1~ 2241234 .3~ 7522.00 24.10 308.80 4739.71 4481.33f\, 2764.921/\ 0.71 5253.68 21 0359.6~ 2241250.8, 7585.0 24.40 307.70 4797.19 4497.34f\, 2785.241/\ 0.86 5278.52 210339.7E 2241267.3E 7648.0 24.60 307.10 4854.52 4513.21 f\, 2805.991/\ 0.51 5303.5C 210319.3E 2241283.7~ 7709.0 25.00 306.3q 4909.90 4528.50f\, 2826.511/\ 0.86 5327.87 210299.2< 2241299.5C 7772.0 25.60 3OS3~ 40068! 4544.25f\, 2848.351/\ 1.17 5353.37 210277.7E 2241315.7E 7834.0 25.80 305.8 5022.7 4559.88f\, 2870.221/\ 0.48 5378.81 210256.2E 2241331.9' 7896.0 25.70 304.6 5078.5 4575.41 t\ 2892.231/\ 0.86 5404.2à 210234.6d 2241347.9~ 7958.0 25.80 303.8Q 5134.41 4590.551\ 2914.511/\ 0.58 5429.5 210212.7 2241363.62 All data is in Feet unless otherwise stated Coordinates are from Slot MD's are from Ri9 and TVD's are from Ri9 ( Datum #2 156.0ft above Mean Sea Level) Vertical Section is from O.OON O.OOE on azimuth 324.46 degrees Bottom hole distance is 6631.10 Feet on azimuth 323.91 degrees from Wellhead Calculation method uses Minimum Curvature method Prepared by Baker Hughes Incorporated e tit 'fM0 MARATHON Oil Company,SD #2 Susan Dionne, ~MARATHON Ninilchik Field,Kenai Peninsula, Alaska SURVEY LISTING Page 4 Wellbore: SD #2 Wellpath: MWD <0-11094> Date Printed: 23-Aug-2004 WøUøath(G,.idlRe.Þort MD[ft] Inc[deg] Azi[deg] TVD[ft] j North[ft] J East[ft] Dogleg , Vertical j Easting fdeQ/100ftl Sectionfftl 8022.00 25.40 303.20 5192.1 4605.81 2937.57\1\ 0.74 5455.3 8084.0C 25.80 302.80 5248.0 4620.401\ 2960.03\1\ 0.70 5480.2 8147.00 25.80 302.70 5304.7 4635.231\, 2983.10\1\ 0.07 5505.72 8211.0C 23.20 306.10 5362.99 4650.191\.. 3005.01\1\ 4.62 5530.6~ 8272.00 23.20 305.80 5419.06 4664.301\, 3024.46\1\ 0.19 5553.42 8335.0C 22.70 306.70 5477.08 4678.82~ 3044.27\1\ 0.97 5576.76 8396.00 22.00 309.2~ 5533.4E' 4693.07 3062.56\1\ 1.94 5598.99 8459.00 21.60 310.9 5591.99 4708.13 3080.47\1\ 1.19 5621.65 8521.00 22.00 310.7 5649.56 4723.17~ 3097.90\1\ 0.66 5644.02 8583.0C 22.50 309.90 5706.94 4738.351\, 3115.81\1\ 0.94 5666.7E' 8645.00 22.30 308.60 5764.26 4753.301\, 3134.10\1\ 0.86 5689.58 8707.00 22.40 307.80 5821.60 4767.881\, 3152.63\1\ 0.52 5712.21 8769.00 22.90 307.50 5878.82 4782.471\, 3171.53\1\ 0.83 5735.07 8830.0C 23.30 306.1~ 5934.9~ 4796.801\, 3190.70\1\ 1.11 5757.87 8892.00 23.50 305.3 5991.8 4811.171\, 3210.69\1\ 0.61 5781.18 8955.0C 23.20 307.2 6049.6 4825.93~ 3230.83\1\ 1.29 5804.90 9017.00 23.40 307.20 6106.62 4840.75~ 3250.36\1\ 0.32 5828.32 9081.0C 23.30 306.80 6165.38 4856.021\, 3270.62\1\ 0.29 5852.51 9143.0C 23.70 305.90 6222.23 4870.671\, 3290.53\1\ 0.87 5876.01 9204.0C 24.00 306.40 6278.02 4885.221\ 3310.45\1\ 0.59 5899.43 9265.0C 24.70 307.60' 6333.6~ 4900.361\ 3330.53\1\ 1.41 5923.4j 9331.00 24.80 306.50 6393.5 4917.011\ 3352.59\1\ 0.71 5949.7 9393.00 25.20 305.50 6449.7 4932.41 I\, 3373.78\1\ 0.94 5974.6 9455.00 25.80 304.50 6505.6~ 4947.711\ 3395.65\1\ 1.19 5999.8 9517.00 26.00 303.40 6561.4~ 4962.84 3418.11\1\ 0.84 6025.1 9578.0C 26.70 303.80 6616.12 4977.82 3440.66\1\ 1.18 6050.46 9639.00 25.80 307.50 6670.83 4993.53 3462.59\1\ 3.06 6075.99 9701.00 25.10 310.30 6726.82 5010.25 3483.32\1\ 2.24 61 01.6~ 9763.0C 24.80 311.80 6783.03 5027.42 3503.04\1\ 1.13 6127.08 9827.00 24.70 311.6~ 6841.1 e 5045.24 3523.05\1\ 0.20 6153.21 9889.00 24.80 310.9 6897.46 5062.36 3542.56\1\ 0.50 6178.48 9951.00 25.00 310.2 6953.7C 5079.33 3562.40\1\ 0.57 6203.8~ 10013.0C 24.70 309.60 7009.96 5096.04 3582.39\1\ 0.63 6229.0 10076.0C 24.70 309.60 7067.19 5112.821\ 3602.67\1\ 0.00 6254.4 10138.0C 24.10 311.90 7123.6 5129.531\, 3622.07\1\ 1.81 6279.36 10200.0C 23.90 311.90 7180.3 5146.371\ 3640.84\1\ 0.32 6303.97 10262.0C 23.90 310.70 7236.9 5162.951\, 3659.71\1\ 0.78 6328.43 10324.0C 24.00 311.20 7293.6 5179.451\, 3678.72\1\ 0.36 6352.9 10387.0C 23.90 31 0.5~ 7351.2 5196.171\ 3698.07\1\ 0.48 6377.7 10449.0C 23.60 310.8g 7407.9 5212.44~ 3717.01~ 0.52 6402.01 10511.0C 23.80 310.10 7464.7 5228.611\ 3735.97 0.56 6426.1 10574.0C 22.80, 309.40 7522.6 5244.541\ 3755.13 1.65 6450.2 10636.0C 22.20 309.50 7579.8 5259.621\ 3773.45 0.97 6473.2 10698.0C 21.70 308.80 7637.39 5274.251\ 3791.42\1\ 0.91 6495.5 10760.0C 21.80 307.6~ 7694.97 5288.46~ 3809.48\1\ 0.74 6517.61 10822.0C 21.70 306.5 7752.56 5302.30 3827.81\1\ 0.68 6539.5 10884.0C 21.30 306.6 7810.24 5315.83 3846.07\1\ 0.65 6561.1 10946.0C 21.00 305.7~ 7868.07 5329.03~ 3864.13\1\ 0.71 6582.3 11007.0C 20.20 305.1 7925.17 5341.46 3881.62\1\ 1.36 6602.6 11026.0C 20.00 305.2 7943.01 5345.22 3886.96\1\ 1.07 6608.8 11094.0C 20.00 305.2d 8006.91 5358.63N 3905.97\1\ 0.00 6630. nj J Northing 210190.0 210167.9 210145.2¿ 210123.7C 210104.5E 210085.1. 210067.1E 210049.6:: 210032.5E 210015.0:: 209997.0E 209978.9. 209960.3ï 209941.5~ 209921.9C 209902.1. 209882.9~ 209863.0E 209843.5C 209823.9¿ 209804.2 209782.5 209761.7 209740.2 209718.1 209695.9 209674.4 209654.0 209634.7 209615.2' 209596.1' 209576.6E 209557.1 C 209537.2. 209518.2. 209499.8E 209481.3E 209462.7E 209443.8¿ 209425.2E 209406.7' 209387.9¿ 209369.9E 209352.3E 209334.6~ 209316.6~ 209298.73 209280.91 209263.7 209258.5 209239.8 All data is in Feet unless otherwise stated Coordinates are from Slot MD's are from Rig and TVD's are from Rig (Datum #2 156.0ft above Mean Sea Level) Vertical Section is from O.OON O.OOE on azimuth 324.46 de9rees Bottom hole distance is 6631.10 Feet on azimuth 323.91 degrees from Wellhead Calculation method uses Minimum Curvature method Prepared by Baker Hughes Incorporated mi. BAKlR HUGHES INTEQ 2241379.4. 2241394.5~ 2241409.9. 2241425.4C 2241439.9E 2241454.9~ 2241469.6¿ 2241485.1' 2241500.5i 2241516.1i 2241531.51 2241546.5i 2241561.6C' 2241576.3E 2241591.2. 2241606.4E 2241621.7t 2241637.4! 2241652.6' 2241667.6: 2241683.2¿ 2241700.4' 2241716.3' 2241732.1 : 2241747.7! 2241763.3C 2241779.5: 2241796.7: 2241814.3i 2241832.6~ 2241850.2¿ 2241867.6t 2241884.8E 2241902.1. 2241919.2! 2241936.5i 2241953.5! 2241970.5¿ 2241987.7. 2242004.4: 2242021.01 2242037.4: 2242052.9¿ 2242068.0C 2242082.6: 2242096.9C 224211 0.8~ 2242124 .4~ 2242137.3 2242141.2 2242155.08 ,- e M' ~ MARATHON Oil Company,SD #2 Susan Dionne, Ninilchik Field,Kenai Peninsula, Alaska MARATHON ~ SURVEY LISTING Page 5 Wellbore: SD #2 Well path: MWD <0-11094> Date Printed: 23-Aug-2004 8i. "'15 INTEQ Comments MDrft] I TVD[ft] I North[ftl I EasUftl I Comment 11094.od 8006.91 5358.63N 3905.97vJ Proiection to TO Hole· Sections Diameter Start [inl MDrftl 121/4 81/2 7.000 Start Start Start End End End Start ~wellbore TVDrftl Northrftl EasUftl MOrftl TVOrftl Northrftl East[ftl 0.00 0.00 O.OON O.OOE 1927.0C 1575.67 788.30N 427.67 SO #2 1927.0C 1575.67 788.30N 427.671/\ 5962.0C 3433.02 3894.891\ 2192.27 SO #2 5962.00 3433.02 3894.891\ 2192.271/\ 11094.od 8006.91 5358.631\ 3905.97 SO #2 Casings Name Top MOrftl Top TVDrftl 0.00 0.00 0.001 Top Top Shoe Shoe jShoe Shoe Wellbore Northrftl East[ftl MOrftl TVDrftl Northrftl East[ftl 0.00 O.OON O.OOE 1927.0C 1575.6 788.30N 427.67\1\i SO #2 0.00 O.OON O.OOE 5942.00 3419.91 3882.301\ 2183.94V\ SO #2 0.00 O.OON O.OOE 11094.0C 8006.91 5358.631\ 3905.97V\ SO #2 9 5/8" CasinQ 7.000in CasinQ 4 1/2in CasinQ All data is in Feet unless otherwise stated Coordinates are from Slot MO's are from Rig and TVO's are from Rig (Datum #2 156.0ft above Mean Sea Level) Vertical Section is from O.OON O.OOE on azimuth 324.46 degrees Bottom hole distance is 6631.10 Feet on azimuth 323.91 degrees from Wellhead Calculation method uses Minimum Curvature method Prepared by Baker Hughes Incorporated Legal Well Name: Common Well Name: Event Name: Contractor Name: Rig Name: - e: Marathon Oil Company Operations Summary Report SUSAN DIONNE 2 SUSAN DIONNE 2 ORIGINAL DRILLING GLACIER DRILLLlNG GLACIER DRILLING I Sub From - To Hours Code i Code Date 7/27/2004 06:00 - 12:00 12:00 - 00:00 00:00 - 06:00 7/28/2004 06:00 - 12:00 12:00 - 00:00 6.00 RURD_I RIG_ MIRU i 12.00 RURD_I RIG_ MIRU i 6.00 RURD_i RIG_ MIRU I 6.00 RURD_! RIG_ MIRU ¡ 12.00 RURD ¡RIG MIRU -! - i 00:00 - 06:00 6.00 RURD - RIG - MIRU 7/29/2004 06:00 - 18:00 12.00 RURD ¡RIG - MIRU -, 18:00 - 19:00 19:00 - 21 :30 21 :30 - 03:00 03:00 - 04:00 04:00 - 06:00 7/30/2004 06:00 - 07:00 07:00 - 07:30 07:30 - 08:00 08:00 - 09:30 09:30 - 13:30 13:30 - 14:00 14:00 - 02:30 \ I 1.00 TEST_I EQIP 2.50 1 i RURD_IRIG_ I I PULD ¡ DP Pl,JLD - ¡ BHA -I - DRILL_ I ROT_ 5.50 1.00 2.00 1.00 DRILL 'ROT 0.50 CIRC-=:' i MUD-=' 0.50 TRIP _ IBHA_ 1.50 PULD_IBHA_ 4.00 REPAIR [RIG_ 0.50 TRIP _ i BHA_ 12.50 DRILL_ IROT_ SURDRL Phase MIRU SURDRL SURDRL SURDRL SURDRL SURDRL SURDRL SURDRL SURDRL SURDRL SURDRL Page 1 of 6 Start Rig Release: Rig Number: Spud Date: 7/29/2002 End: Group: 7/24/2004 Description of Operations Release rig from maintenance 06:00 hrs 7/26/2004. Load out pump, pit, and generator houses. Load out water tank, MI centrifuge van, cement silo and sub base. RID camp, welding and mechanic shops, part house. Load out equipment trailers. PJSM. Spot sub base, mud boat, pump room, pits, generator and boiler houses. RlU camp. Spot carrier and prep to raise derrick. Install outriggers. Crane in fuel tank. Prep to crane in derrick house, choke house and dog house. Spot parts house, mech. shop and water tank. Pull pit house and pump house together. Pull electrical wires. Crane in front and back wind walls. Crane in choke house and dog house, flow line, stars and landing. Remove well house from SD#1 well. RlU pop off lines on pumps. RlU gas buster. Run water line from well to rig and begin to fill pits. RlU rig floor hydraulics. Prep and scope up derrick. Set trip tank and conex. Adjust derrick guide wires. Set top drive on rig floor. RlU carrier mufflers. Run electric wires and service lines. RlU stand pipe and cement lines. PJSM. Install panic line. Set cuttings box. RlU brake linkage and drillers console. RlU new water tank. Cut conductor pipe and install 21 1/4" starting head. Test seals on starting head. Spot catwalk and RlU beaver slide. RlU stairs to conex. N/U 21 1/4" diverter. Spot #3 pump house. Test run Dennison pump on #1 mud pump. Install new slats on shakers. RlU #3 mud pump house. RlU 16" diverter line and knife valve. RlU koomey lines. Install bell nipple. Install choke and kill lines to choke maifold and mud manifoled. PJSM, cont RlU on SD-#2 P/U and install top drive torque tube. Install turnbuckles. RlU top drive. Mix mud cont. work on water tank. Accept rig for rig work@ 20:30 hrs 07/28/2004. (It was ready at 21 :30, however, the diverter test is part of the drilling phase. So the acceptance time was moved back one hour.) PJSM, prepare and test diverter system. Perform time I volume test on accumulator. All tests successful. Witness waived by Mr Jim Regg. Install flowline. RlU rig floor pipe handling tools. Install service loop on TD. Install bales and DP elevators. PJSM, rack I strap 4" DP, P/U, stand bk in derrick. M/U bit #1, MWD I Motor assy, surface test same. Spud well 04:00hrs 7/29/04. Tag @ 30'. Commence clean out 20" conductor 30 - 113 ft Drill F/119' to 155'(ART= 1 hr) Circ. hole clean. POOH. P/U MWD and orient. Trouble shoot pump#2 charge pump(find corroded wire). Cont. RIH w/BHA. Resume drill ahead 12 1/4 hole drctnl, 155 - 860 ft Conn drag normal, cuttings average quantity I quality ART = 2 hrs, AST = 3.33 hrs Printed: 2/28/2007 2:27:17 PM e e Page 2 of 6 Marathon Oil Company Operations Summary Report 1 TRIP _ BHA_ SURDRL POH 60 ft, C/O saver sub to 4" HT 38 1.50 DRILL_ ROT_ SURDRL Resume drill ahead 12 1/4 hole drctnl, 860 - 1051 ft Conn drag normal, cuttings average quantity I quality = 1.6 hrs, AST = .6 hrs Up 58, Dn 53, Rot 55, WOB 15, SPP 875, RPM 40 CBU for wiper trip, shaker clean. No loss I gain Legal Well Name: Common Well Name: Event Name: Contractor Name: Rig Name: Date SUSAN DIONNE 2 SUSAN DIONNE 2 ORIGINAL DRILLING GLACIER DRILLLlNG GLACIER DRILLING From- To Hours Code I ~6dbe Phase 7/30/2004 02:30 - 03:30 03:30 - 05:00 05:00 - 06:00 1.00 CIRC_ I MUD_ SURDRL I 7/31/2004 06:00 - 07:00 1.00 TRIP 'WIPR SURDRL 07:00 - 08:00 1.00 SERVIC I RIG SURDRL \ - 08:00 - 08:30 0.50 TRIP iWIPR SURDRL 08:30 - 01 :30 17.00 DRILL_ IROT_ SURDRL I 01 :30 - 02:30 1.00 CIRC ! MUD SURDRL 02:30 - 04:00 1.50 TRIP= !WIPR SURDRL 04:00 - 04:30 0.50 SERVIC I RIG_ SURDRL 04:30 - 05:30 1.00 TRIP -IWIPR SURDRL 05:30 - 06:00 0.50 CIRC_IMUD_ SURDRL 8/1/2004 06:00 - 06:30 0.50 CIRC_ \ MUD_ SURDRL 06:30 - 08:30 2.00 TRIP _ I BHA_ SURDRL 08:30 - 10:30 2.00 PULD_I BHA_ SURDRL 10:30 - 13:30 3.00 RURD_IEQIP SURCSG 13:30 - 17:30 4.00 RUN_! CSG_ SURCSG 17:30 - 19:30 2.00 CIRC ¡MUD SURCSG 19:30 - 22:00 2.50 PUMP _ICMT,=- SURCSG , I I 22:00 - 06:00 8.00 NUND IDBOP SURCSG ! 8/2/2004 06:00 - 07:30 1.50 NUND !DBOP SURCSG 07:30 - 08:30 1.00 NUND iDBOP SURCSG 08:30 - 13:00 4.50 NUND iUwLH SURCSG 13:00 - 14:30 1.50 NUND IUWLH SURCSG 14:30 - 23:00 8.50 NUND !UBOP SURCSG 23:00 - 00:00 1.00 TEST - !EQIP SURCSG 00:00 - 04:30 4.50 TEST_ i,EQIP SURCSG I 04:30 - 05:30 1.00 TEST IpLUG SURCSG -, Start: Rig Release: Rig Number: Spud Date: 7/29/2002 End: Group: 7/24/2004 Description of Operations Wiper trip to 138'(hole in good condition). C/O TD grabber dies. Service rig. RIH(nofill). Dir drill and survey F/1051' to 1927 ft 9 5/8 csg pt at 1927 ft = 5.4 hrs, AST = 6.6 hrs Circ clean, pump Hi Vis sweep for wiper trip. PJSM, POH wiper trip to 20" shoe. No drag / swab. Service Rig PJSM, RIH wiper trip(SLM), caution wash 60 ft, no fill. No dndrag, well bore exc condition. Circ clean in prep for 9 5/8 csg Cont. circ. clean(CBUX3, 476gpm, 1220psi). Flow check(well static). POOH(wet). Cont. POOH UD BHA and bit. RlU Weatherford CSG running tools. PJSM prior to running CSG. P/U and Baker lok shoe tract. M/U 9 5/8" swedge and circ. shoe tract. UD swedge and cont. to run 9 5/8" 47ppf L-80 Butt-mod CSG(total 47jnts). Shoe set@1927'. RlU BJ cement head. Circ(1.5XCSG volume, 180gpm, 180psi). PJSM, cmt 9 5/8 surface csg as follows: Pump 5 bbls H2o, test lines 3500 psi. Drop btm plug, confirm plug drop. Pump 40 bbl 8.4 ppg " Mud Clean II " as spacer. Mix I pump 420 sks (188 bbls) Type 1,12 ppg slurry. Drop top plug, confirm plug drop, pump 5 bbl H20. Displace 136 bbls tot, bump plug with 1020 psi. Hold press 5 min, bleed, floats holding. ICP = 180 psi, FCP = 390. 40 bbl12 ppg cmt returns to surface, no gain I loss. Bump plug / cmt in place 2140 hrs PJSM, nipple dn diverter system while WOC. Flush stack, rig dn cmt hd, C/O bales elevators, clear rig floor, clean pits, remove diverter lines, alii related diverter equip. Rough cut 9 5/8" CSG. UD cut joint. N/D bell nipple. NID 21 1/4" diverter. Remove 21 1/4" starter head. Cut 20" conductor. Final cut 9 5/8" CSG. and dress cut. Install Vetco 9 5/8" X11" 3M X 11" 5M multibowl SOW. Test seals to 1 000psi/1 Omin. N/U 11"5M X 13 5/8" 5M DSA. N/U 135/8" 5M spacer spool. NIU 13 5/8" 5M R,S,Rd,A BOP, install choke I kill lines, fillup I trip tank lines flow line turn buckles Function test BOPE, set test plug, RlU for BOP test PJSM, test BOPE, rams, annular, choke mnfld, kill lines, top drv valves to mud pumps, blinds, all related equip, 250 I 2500 psi. Choke valve #3 grease I re-tested. All tests successful, one re-test. PJSM, test 9 5/8 csg to 2500 psi 130 min. Printed: 2/28/2007 2:27:17 PM e . Page 3 of 6 Marathon Oil Company Operations Summary Report Legal Well Name: SUSAN DIONNE 2 Common Well Name: SUSAN DIONNE 2 Event Name: ORIGINAL DRILLING Contractor Name: GLACIER DRILLLlNG Rig Name: GLACIER DRILLING Date From ~ To Hours Code Sub I Phase Code I 8/2/2004 04:30 - 05:30 1.00 TEST_ PLUG SURCSG 05:30 - 06:00 0.50 PULD - DP - SURCSG 8/3/2004 06:00 - 13:30 7.50 PULD - DP - SURCSG 13:30 - 15:00 1.50 PULD - BHA_ SURCSG 15:00 - 17:30 2.50 PULD - DP - SURCSG 17:30-18:15 0.75 DRILL_ CMT_ SURCSG 18:15 - 18:30 0.25 DRILL_ ROT_ SURCSG 18:30 - 20:00 1.50 CIRC_ MUD - SURCSG 20:00 - 20:30 0.50 TEST_ LOT_ SURCSG 20:30 - 06:00 9.50 DRILL - ROT_ IN1DRL 8/4/2004 06:00 - 13:30 13:30 - 16:00 16:00 - 17:00 17:00 - 18:00 18:00 - 18:30 18:30 - 19:00 19:00 - 20:30 20:30 - 21 :30 21 :30 - 06:00 8/5/2004 06:00 - 13:00 13:00 - 14:30 14:30 - 16:00 16:00 - 17:00 17:00 - 18:00 18:00 - 06:00 06:00 - 20:00 20:00 - 22:30 22:30 - 03:30 03:30 - 04:30 04:30 - 06:00 06:00 - 07:00 07:00 - 10:00 8/6/2004 8/7/2004 10:00 - 14:30 14:30 - 16:30 16:30 - 18:30 18:30 - 22:00 22:00 - 23:00 23:00 - 23:30 23:30 - 00:00 00:00 - 00:30 7.50 DRILL_ ROT_ 2.50 CIRC_ MUD_ 1.00 TRIP _ WIPR 1.00 DLlN 0.50 SERVIC RIG_ 0.50 TRIP _ WIPR 1.50 DRILL_ ROT_ 1.00 REPAIR RIG_ 8.50 DRILL_ ROT_ 7.00 DRILL_ ROT_ 1.50 CIRC_ MUD_ 1.50 TRIP WIPR 1.00 SERVIC RIG_ 1.00 TRIP _ WIPR 12.00 DRILL_ ROT_ 14.00 DRILL_ ROT_ 2.50 CIRC_ MUD_ 5.00 TRIP _ WIPR 1.00 SERVIC RIG_ 1.50 TRIP _ WIPR 1.00 TRIP _ WIPR 3.00 CIRC_ MUD_ IN1 DRL IN1DRL IN1 DRL IN1DRL IN1DRL IN1DRL IN1DRL IN1 DRL IN1 DRL IN1DRL IN1DRL IN1DRL IN1DRL IN1DRL IN1DRL IN1DRL IN1DRL IN1DRL IN1DRL IN1DRL IN1DRL IN1DRL 4.50 TRIP - BHA_ IN1DRL 2.00 PULD - BHA_ IN1DRL 2.00 LOG - OH - IN1EVL 3.50 LOG - OH - IN1EVL 1.00 LOG - OH IN1EVL 0.50 LOG - OH - IN1EVL 0.50 LOG - OH IN1EVL 0.50 LOG - OH IN1EVL Start: 7/24/2004 Rig Release: Rig Number: Spud Date: 7/29/2002 End: Group: Description of Operations Test successful, no re-test. PJSM, prepare and begin P/U 4" DP for drill out. P/U 4" DP. P/U 8 1/2" bit and BHA. P/U 4" DP while RIH(total130jnts DP). Tag @ 1840'. Drill FC, shoe tract and shoe. Drill ahead 20 ft new fmtn for LOT Circ I displace to 8.9 ppg Flo-Pro system Pull in to shoe, perform LOT. results 730 psi /17.8 EMW Drill ahead 8 1/2 hole, drctnl1947 - 2650 ft ART = 4.7 hrs, AST = 1.7 hrs No conn drag, no gain I loss. cuttings return normal I Up 60. Dn 40, Rot 50 WOB 10. RPM 40, SPP 1326, SPM 300 I No Ace, no dn time Dir drill and survey F/2650' to 3251'. Circ. clean(CBUX8 , 75RPM, 520GPM, 1422psi). POOH to CSG shoe(hole slick). Slip and Cut Drill Line Service Rig RIH wiper trip, precaution wash 60 ft, no fill. Drill ahead 8 1/2 hole drctnl, 3251 - 3313 ft Change "grabber" dies, top drv Resume drill ahead 8 1/2 hole drctnl, 3313 - 4062 ft ART = 8.5 hrs, AST = 2.7 hrs Connections free, no loss I gain Up 75. Dn 50, Rot 60 WOB 10. RPM 40, SPP 1719, SPM 300 Max gas 930, Ave gas 35 No ace 11 hr dn time Dir drill and survey F/4062' to 4558'(ART=3.0 hrs AST=1.3 hrs). Circ. clean(CBU X 5, 67RPM, 523gpm, 1794psi). POOH to 3140'(hole in good condition). Service rig and C/O grabber box on top drive. RIH (no fill). Dir drill and survey F/4558' to 5432' (ART=5.6 hr. AST=2 hrs). Dir drill and survey F/5432' to 5962' (ART=2.9 hrs. AST=6.1 hrs). Circ clean (CBU X 5 times). Wiper Trip To 9 5/8" csg. shoe (tight F/5100 to 4558'). Service Rig and change liner and swab in #3 pump, TIH. RIH(nofill). Circ. clean and condo mud(CBUX6, 2200psi,72RPM.510gpm, 175units gas). Flow check. Pump dry job. Drop 2.31" drift. (large amount of clay across shakers at first circulation). POOH. (SLM no correction). LID Bha #2 PJSM: M/U Reeves Quad Combo logs inside 3 1/2" DP & RIH on 5" HWDP to 900' and Run checks per Reeves Engineer. Continue to RIH to 5952' breaking circ @ 1927' , 3971". Circ well bore clean @ 5.5 Bpm 1050 Psi (38 units bottoms up gas). Pull up to 5852', Pump dn messenger & Deploy logging tools PJSM: Pump dry job. Printed: 2/28/2007 2:27:17 PM e e Page 4 of 6 Marathon Oil Company Operations Summary Report legal Well Name: Common Well Name: Event Name: Contractor Name: Rig Name: Date 8/7/2004 8/8/2004 SUSAN DIONNE 2 SUSAN DIONNE 2 ORIGINAL DRilLING GLACIER DRlllLlNG GLACIER DRilLING C Sub From - To Hours ode Code Phase 00:30 - 06:00 5.50 LOG - OH - IN1EVL 06:00 - 07:30 1.50 LOG_ OTHR IN1 EVL 07:30 - 08:30 1.00 LOG iOTHR IN1 EVL -I 08:30 - 10:00 1.50 PULD_!EQIP IN1CSG 10:00 - 11 :00 1.00 RURD_IEQIP IN1CSG 11 :00 - 16:30 5.50 RURD iEQIP IN1CSG -I 16:30 - 18:00 1.50 RUN ¡ CSG IN1CSG 18:00 - 20:00 2.00 RUN -ICSG- IN1CSG -\ - I 20:00 - 20:30 0.50 CIRC_ IMUD - IN1CSG 20:30 - 02:30 6.00 RUN ICSG - IN1CSG 02:30 - 04:00 1.50 CIRC - MUD - IN1CSG 04:00 - 04:30 0.50 PUMP - CMT_ IN1CSG 04:30 - 05:00 0.50 PUMP _ICMT_ IN1CSG 05:00 - 06:00 1.00 PUMP - CMT_ IN1CSG 8/9/2004 06:00 - 06:30 0.50 PUMP ICMT IN1CSG -I - 06:30 - 07:00 0.50 RURD_i EQIP IN1CSG 07:00 - 10:30 3.50 TEST _ i EQIP IN1CSG 10:30 - 14:30 4.00 TEST_ iEQIP IN1CSG 8/10/2004 14:30 - 20:00 5.50 REPAIR i RIG_ IN1CSG 20:00 - 06:00 06:00 - 07:30 07:30 - 08:30 08:30 - 12:00 12:00 - 13:30 13:30 - 16:30 16:30 - 17:30 10.00 PULD_ i DP _ 1.50 PULD iDP_ 1.00 TEST j PLUG 3.50 PULD_: BHA_ 1.50 PULD_ i BHA_ 3.00 TRIP ! BHA 1.00 DRILL_ ICMT= IN1CSG IN1CSG IN1CSG IN1 CSG IN1CSG IN1CSG IN1CSG Start: Rig Release: Rig Number: 7/24/2004 Spud Date: 7/29/2002 End: Group: Description of Operations POOH logging well with Reeves Quad Combo log. Cont. POOH wlReeves DP conveyed logging tools. UD Reeves logging tools. Clean rig floor. UD 22jnts 5" HWDP. Pull wear bushing. P/U Vetco Hanger/LJ assy. RIH and check position of hanger assy. POOH and UD assy. RlU CSG tools. C/O rams to 7" CSG rams. Test door seals to 2500psi. P JSM(while RlU hole losing 1 bbl/hr). P/U Joint#1. M/U and Bakerlok shoe tract. Cont. to RIH wIT' CSG to 1300'(problem getting CSG to go in hole w/cent). Circ. CSG. spot 1bbl EP lube outside CSG shoe(with the EP-Iube CSG ran in hole easy). Ran 144 jts. 7" 26# L-80 BTC Csg and M/U Vetco 10 3/4"X7" TBG hanger and landing jt. and land. Shoe @ 5942' . 135k Up 48k Dn. M/U BJ head and circ csg. 1.5 X Csg capacity @ 100 spm .192 gpm. 802 psi. PJSM. Pump 5bbls water ahead from BJ. Test lines 3500psi. Mix and pump 30bbls 10ppg spacer. Drop bottom plug. Mix and pump 250sxs Class"G" cement w/20%MPA-1, .3%FL-52, 2%SMS, .2%CD-32 and 1 gphs FP6L to yield 11 Obbls 12.5ppg slurry. Tail in w/162sxs Class"G" cement w/2%KCL, .6%FL-63, .5%EC-1, .1 %ASA-301, .3%CD-32, .2%R-3 and 1 gphs FP-6L to yield 34bbls 15.8ppg slurry. Drop top plug. Kick plug out of head w/5bbls water from BJ. Displace w/219bbls 9.8ppg mud. Bump plug w/1500psi 500psi over displacement pressure(spacer and 20bbls cement to surface) CIP@05:30hrs. Check floats held OK. RID BJ cement head. Clean rig floor. Flush stack. Install Vetco 11" X 7" packoff. Test P.O. to 3500psi/15min. CIO top rams to 2 7/8" X 5 1/2" variable rams. UD long bales. P/U 4" test joint and set test plug. Begin empty pits and C/O pump liners. IBOP, TIW, Upper and lower kelly valves to 250psi/2500psi(upper kelly valve failed). CIO kelly valves and retest OK. Test upper variable rams, lower pipe rams, blind rams, and annular to 250/2500psi. Test CMV 1-12, kill line check, kill line valve, Choke HCR and manual choke line valve to 250psi/2500psi. Perform accumulator test. Pull test plug and install wear bushing. Cont. to empty and clean pits and C/O pump liners. While cont. to clean pits and CIO liners weld cracks in the extenders for TD.C/O Valve on Top Drive, Test gas alarms, RlU bales, Elevators, CIO oil cooler #1 pump mtr, Check all pop offs on pump, mixmud. P/U 4" DP & stand back in derricK. Cont. to P/U 4" DP and rack back in derrick(totaI184jnts). Test 7" CSG to 2500psi/30min. P/U bit and BHA. Scribe motor and MWD. Test motor and MWD. P/U 25-3.5" HWDP and jars as RIH. Cont. RIH w/4" DP. Tag FC@5860'. Drill float collar and shoe track to 5942'. Clean old hole to 5962'. Printed: 2/28/2007 2:27:17 PM e - Page 5 of 6 Marathon Oil Company Operations Summary Report legal Well Name: SUSAN DIONNE 2 Common Well Name: SUSAN DIONNE 2 Event Name: ORIGINAL DRilLING Contractor Name: GLACIER DRlllLlNG Rig Name: GLACIER DRilLING Date ! From - To Hours ¡ Code ~ouJe Phase 8/10/2004 17:30 -18:00 0.50 DRILL_ ROT_ IN1CSG 18:00 - 20:00 2.00 CIRC_ MUD_ IN1CSG 8/11/2004 8/12/2004 8/13/2004 8/14/2004 8/15/2004 8/16/2004 8/17/2004 8/18/2004 8/19/2004 20:00 - 20:30 20:30 - 06:00 06:00 - 06:00 06:00 - 10:00 10:00 - 10:30 10:30 - 11 :30 11 :30 - 12:00 12:00 - 12:30 12:30 - 06:00 06:00 - 06:00 06:00 - 08:30 08:30 - 09:30 09:30 - 10:00 10:00 - 11 :00 11 :00 - 12:00 12:00 - 12:30 12:30 - 06:00 06:00 - 06:00 06:00 - 06:00 06:00 - 10:00 10:00 - 12:00 12:00 - 17:00 17:00 - 18:00 18:00 - 18:30 18:30 - 20:30 20:30 - 21 :00 21 :00 - 22:30 22:30 - 01 :30 01 :30 - 03:00 03:00 - 05:00 05:00 - 06:00 06:00 - 08:00 08:00 - 06:00 06:00 - 21 :00 21:00 - 00:30 00:30 - 01 :30 01 :30 - 02:00 02:00 - 05:00 05:00 - 06:00 0.50 TEST_ LOT_ IN1CSG 9.50 DRILL_ ROT_ PR1DRL 24.00 DRILL_ ROT_ 4.00 DRILL_ ROT_ 0.50 CIRC_ MUD_ 1.00 TRIP WIPR 0.50 SERVIC RIG_ 0.50 TRIP _ WIPR 17.50 DRILL_ ROT_ 24.00 DRILL_ ROT_ 2.50 DRILL_ ROT_ 1.00 CIRC_ MUD_ 0.50 TRIP _ WIPR 1.00 REPAIR RIG_ 1.00 TRIP _ WIPR 0.50 TRIP _ WIPR 17.50 DRILL_ ROT_ 24.00 DRILL_ ROT_ 24.00 DRILL_ ROT_ 4.00 DRILL_ ROT_ 2.00 CIRC_ MUD_ 5.00 TRIP _ BHA_ 1.00 PULD_ BHA_ 0.50 RUNPUL WBSH I 2.00 TEST l EQIP -I 0.50 \ RUNPUJ WBSH 1.50 PULD i BHA 3.00 TRIP -! BHA - 1.50 SLPCUTIDLlN- 2.00 TRIP ! BHA 1.00 CIRC_ ! MUD-=- 2.00 REPAIR ¡ EQIP 22.00 DRILL_ i ROT_ 15.00 DRILL_ ,ROT_ PR1DRL PR1DRL PR1 DRL PR1DRL PR1DRL PR1DRL PR1DRL PR1DRL PR1 DRL PR1DRL PR1 DRL PR1DRL PR1DRL PR1DRL PR1 DRL PR1DRL PR1DRL I PR1DRL PR1DRL PR1DRL PR1DRL PR1 DRL PR1DRL PR1DRL PR1DRL PR1DRL PR1DRL PR1DRL PR1DRL PR1DRL PR1 DRL PR1DRL 3.50 TRIP _ : BHA_ PR1DRL 1.00 TRIP _ iBHA_ PR1DRL 0.50 SERVIC I RIG_ PR1 DRL 3.00 TRIP _ ! BHA_ PR1 DRL 1.00 DRILL_ i ROT _ PR1DRL Start: 7/24/2004 Rig Release: Rig Number: Spud Date: 7/29/2002 End: Group: Description of Operations Drill 5962' to 5982'(ART=.4 hrs). CBU, Mix & pump 25 bbl. spacer and follow with 9.0 ppg. flow pro to displace well, and circulate to verify wt in and out. Run LOT (9.0 ppg. mw +1765 psi applied @ 3420 TVD. 5942' MD csg shoe = 18.9 PPG. EMW). Dir Drill F/5982' to 6082'(ART=1.2hrs AST=4.7hrs)(very difficult to slide, added EP-Iube and lubtex. Will bring cone. up to 4%). Dire drill 7" hole F/6082' to 6470' ART= 2.2 hrs. AST= 13.9 hrs. Dir drill 7" hole F/6470' to 6533' (ART=.3 hrs AST=2.40 hr). CBU TOH to 7" shoe (no problems). Service rig. TIH to 6533' (no fill). Dire drill 7" hole F/6533' to 6798' (AST=11.5 hrs ART=1.4 hrs). Dire Drill 7" hole F/6798 to 7369' (ART= 5.0 hrs. AST=10.7 hrs). Dire Drill 7" Hole F/7369' to 7465' (ART= 1.5 hrs AST=.7). CBU , pump dry job POOH to 7275' (kick drill ) Repair Hydraulic hose on dwks Continue to POOH to 6533' 15 stds TIH. Wash last std to bottom (10' Fill) Dire Drill 7" hole F/7465' to 8157' (ART=9.5 hrs. AST=2.9 hrs). Directionally drill 7" hole F/8157' to 8837' ART=9.3 hrs AST=8.5 hrs. directionally drill 7" hole F/8837' to 9515' ART=11.3hrs AST=5.5hrs Directionally drill 7" hole F/9515' to 9585' ART=1. 7 hrs. AST= .3hrs. CBU X 2 POOH to Bha Pull Bha & lay dn mtr. & RMR Pull wear bshg. & set test plug. Test all bop equipment to 250/2500 psi. Chg. out no. 7 valve on choke manifold. performance test koomey, Test waived by Jim Regg with AOGC Pull test plug and set wear bshg. M/U Bha #5 New mud mtr & Re-set Ako 1.8, Orientate MWD TIH to csg. shoe @ 5942' Slip and Cut Drill Line/186' cut, 146' slipped Continue tih to 9585' , precautionary wash last std to bottom Circ out trip gas & set MWD computer Trouble shoot and repair MWD surface computer. Directionally drill 7" hole F/9585' to 10128' ART=8.5 hrs. AST=6.2 hrs. Drill ahead 7" hole drctnl, 10128 - 10657 ft ART=11.8hrs No conn drag, no loss I gain, flow check connections Note SPP drop 700 PSI/15 min. Test surface equip, no leak, prepare / POH for washout Normal drag, no swab, no loss I gain CIO washed jt DP,( slip area ), std #73, 4526 ft Test MWD I motor assy Service Rig Flow check, RIH 10500 ft, precaution wash 60 ft, no fill Resume drill ahead 7" hole drctnl, 10567 - 10704 ft ART = .7 hrs Printed: 2/28/2007 2:27:17 PM e - Page 6 of 6 Marathon Oil Company Operations Summary Report SUSAN DIONNE 2 SUSAN DIONNE 2 ORIGINAL DRilLING GLACIER DRlllLlNG GLACIER DRilLING i Sub From - To I Hours Code Code 05:00 - 06:00 1.00 DRILL_ ROT_ legal Well Name: Common Well Name: Event Name: Contractor Name: Rig Name: Date 8/19/2004 8/20/2004 8/21/2004 8/22/2004 Phase PR1DRL 06:00 - 19:00 13.00 DRILL_ ROT_ PR1DRL 19:00 - 21 :00 2.00 CIRC - MUD - PR1DRL 21 :00 - 03:30 6.50 TRIP - WIPR PR1DRL 03:30 - 06:00 2.50 CIRC - MUD - PR1DRL 06:00 - 06:30 0.50 CIRC - MUD - PR1DRL 06:30 - 13:00 6.50 TRIP . BHA PR1DRL -! - 13:00 - 15:30 2.50 PULD - iBHA_ PR1 DRL 15:30 - 17:30 2.00 LOG - OTHR PR1EVL 17:30 - 22:30 5.00 LOG OTHR PR1EVL -! 22:30 - 00:00 1.50 CIRC_ MUD - PR1 EVL 00:00 - 01 :30 1.50 LOG - OTHR PR1 EVL 01 :30 - 06:00 4.50 LOG - OTHR PR1EVL 06:00 - 09:30 3.50 LOG - OTHR PR1EVL 09:30 - 11 :00 1.50 LOG_ OTHR PR1EVL 11 :00 - 14:30 14:30 - 15:00 15:00 - 15:30 15:30 - 16:00 16:00 - 20:00 3.50 LOG_ OTHR 0.50 CIRC_ MUD 0.50 SLPCUT DUN 0.50 SERVIC RIG_ 4.00 CIRC_ MUD_ PR1 EVL PR1EVL PR1EVL PR1 EVL PR1EVL Start: 7/24/2004 Rig Release: Rig Number: Spud Date: 7/29/2002 End: Group: Description of Operations Ave gas 45 units, Conn gas 50 - 100, trip gas 1950 No conn dra9, no loss / gain, flow check connections Cuttings normal quantity I quality WOB 3 - 7, RPM 70, SPP 2900, SPM 240 Up 150, Dn 85, Rot 115 No ace I dn time, trouble time washout 7.5 hrs Drill ahead 7" hole drctnl, 10704 - 11094 TD well this depth (MD 11094, TVD 8007) ART = 12.8 hrs Ave gas 30 units, Conn gas 40 - 75 No conn drag, no gain I loss, flow check connections Cuttings normal quantity I quality WOB 3 I 8, RPM 70, SPP 2900, SPM 240 Up 170, Dn 85, Rot 120 Circ well clean for wiper trip, no gain I loss PJSM, wiper trip to shoe, well bore exc cond, precaution wash 60 ft to btm, no fill. Circ well clean, prepare POH for logs. Cuttings normal quantity I quality, no gain I loss Pump wt pill, flow check, prepare POH for logs PJSM, POH SLM (no correction), no drag / swab / gain I loss correct hole fill. Flow check, layout BHA #5, 4 3/4 X 7" drctnl assy, clear rig floor. PJSM, RIU Reeves E-Iog equip, surface test same RIH E-Iog equip on 4" DP, circ I clear pipe at 245 ft, resume RIH, stage circ at 2000 ft intervals CBU, pipe clear, trip gas 275 units, no gain /Ioss POH to 10978 ft, deploy tools at 1500 psi, pump wt pill. Commence POH E-Iogging Cont POH logging Reeves shuttle system, ( CWS, MAl, MSS, MPD, MON, NMS, MBS ) 11 084 - 2642 ft No drag I gain /Ioss. Correct hole fill. Layout Reeves tools, all related equip, clear floor. Relay data MOC Anc office. Release unit. RIH 4" DP to 7" shoe 5930 ft Circ / cond while wait on log evaluation Slip and Cut Drill Line Service Rig Circ / cond while wait on log evaluation Begin completion event. Printed: 2/28/2007 2:27:17 PM e . Page 1 of 2 Marathon Oil Company Operations Summary Report Date SUSAN DIONNE 2 SUSAN DIONNE 2 ORIGINAL COMPLETION GLACIER DRILLLlNG GLACIER DRILLING Sub From - To Hours Code Code Phase Legal Well Name: Common Well Name: Event Name: Contractor Name: Rig Name: 8/22/2004 2.00 TRIP - WIPR PR1CSG 3.50 CIRC - MUD - PR1CSG 4.50 PULD_I DP _ PR1CSG 7.50 PULD _iDP_ PR1CSG 2.50 RURD_! EQIP PR1CSG ! 2.00 TEST_ EQIP PR1CSG 12.00 RUN - CSG - PR1CSG 20:00 - 22:00 22:00 - 01 :30 01 :30 - 06:00 8/23/2004 06:00 - 13:30 13:30 - 16:00 16:00 - 18:00 18:00 . 06:00 Start: 8/22/2004 Rig Release: Rig Number: 1 Spud Date: 7/29/2002 End: Group: Description of Operations RIH 4" DP, wiper trip / cond for csg run Circ / cond for csg run. Trip gas 350 units. No gain I loss PJSM, flow check, POH laying dn 4" DP for 4112 csg run No drag I swab I gain /Ioss. Correct hole fill. 180 jts out at 0600 hrs. Cont POH laying dn 4" DP / HWDP, no drag / swab I loss Clear rig floor all drlg tools, PJSM, R/U Weatherford csg equip, prepare rig floor 4 1/2 csg PJSM, C/O rams to 41/2, test same 250/2500 psi Test successful, no re-test PJSM, M/U I RIH 4 1/2 shoe track, thread lock all conn's ( Guide shoe, 3 jts 4 1/2, Float collar) Follow with 125 jts 4 1/2 , 12.6 ppf, L80, Mod Butt prod csg. Baker ZXP Pkr, 49 jts 4 1/2 csg at 0600 hrs. No dn drag / gain /Ioss. Correct displacement. No ace I dn time. 8/24/2004 06:00 - 07:30 1.50 RUN - CSG - PR1CSG RIH with 15 jts 41/2,12.6 ppf, L80, Mod Tubing Butt prod csg to 8000'. RU to break circulation and casing is stuck. 07:30 - 09:30 2.00 RUN - CSG - PR1CSG Work pipe, circulate while mixing 25 bbllubricant pill with 50% lubtex and 25 ppb Asphasol to free stuck pipe. Spot pill to end of tubing, change out to short bails. Work down 5 rounds of torque with top drive. Begin reciprocating pipe between 25K to 150K while pumping pill up annulus until free. SO 50K, PU 80K. 09:30 - 10:30 1.00 RUN - CSG - PR1CSG RIH 16 joints 41/2, 12.6 ppf, L80, Mod Tubing Butt prod csg. MU Baker Chemical Injection Nipple (8430 psi Burst-7500 psi Collapse) with 1" OD Interdesign H Series Injection Valve with dual checks and 5K rupture cartridge (10K working pressure). 10:30 - 14:00 3.50 RUN - CSG_ PR1CSG Continue RIH with 50 joints 41/2, 12.6 ppf, L80, Mod Tubing Butt prod csg. While tripping in hole MU joint and pipe is stuck. Work pipe for 15 minutes to free. Cont RIH to btm at 11094 ft. Guide shoe 11094 ft, float collar 10969 ft, pkr 5732 ft. Inj xple 2400 ft. 14:00 - 15:30 1.50 CIRC_ MUD - PR1CSG Circ I cond fluids, trip gas 300 units, cuttings return normal quantity I quality. Traces coal. No gain /Ioss. Cont circ / cond in prep for cmt specs. Note: Can not recip pipe. Max 10ft upward movement. 15:30 - 18:30 CMT_ PR1CSG PJSM, Commence cmt 4 1/2 csg as follows: Pump 5 bbl H2o, test lines 5000 psi, pump 37 bbl MCS40 spacer Mix I pump 215 bbl "G", 13.5 ppg Drop plug, confirm plug dropped Displace with 168 bbl KCL, correct displacement. Bump plug with 3230 psi, build to 3700 psi / set pkr Cont build to 4500 psi 110 min, tbg test successful Bleed 1.5 bbls, floats holding. Plug bumped, cmt in place 1816 hrs. 100% returns, no gain I loss ICP = 580 psi, FCP = 2270 psi, linear press rise entire job. 18:30 . 03:00 8.50 NUND DBOP PR1CSG PJSM, Nipple dn BOPE, C/O rams, clean pits while WOC 03:00 - 06:00 3.00 NUND DBOP PR1CSG Suspend BOP stack, cut csg, remove BOP, begin install packoffs / tree adptr. 8/25/2004 06:00·10:00 4.00 NUND UTRE PR1CSG PJSM, install pkf, terminate control line, test same, Pnnted: 2/28/2007 2:27:51 PM - . Page 2 of 2 Marathon Oil Company Operations Summary Report Legal Well Name: SUSAN DIONNE 2 Common Well Name: SUSAN DIONNE 2 Event Name: ORIGINAL COMPLETION Contractor Name: GLACIER DRILLLlNG Rig Name: GLACIER DRILLING Date From - To Hours Code Sub Phase Code 8/25/2004 06:00 - 10:00 4.00 NUND UTRE PR1CSG 10:00 - 11 :00 1.00 TEST_ PLUG PR1CSG 11 :00 - 06:00 19.00 RURD RIG_ RDMO 8/26/2004 06:00 - 12:00 6.00 RURD - RIG_ RDMO 12:00 - 00:00 12.00 RURD - RIG - RDMO Start: 8/22/2004 Rig Release: Rig Number: Spud Date: 7/29/2002 End: Group: Description of Operations install prod tree, test same, all tests successful. PJSM, test tbg annulus 1000 psi /15 min. Test good. Set BPV, secure well. PJSM, commence rig dn, prepare move to Cannery #9 Lower Derrick and prep to layover. Crane off windwalls, stairs, dog house. RID beaver slide. Load out MI van and mud pump#3. PJSM. RID w/crane, choke house, front windwalls, stairs, landings, outriggers, conex, flowline, diesel tank and derrick house. Lay derrick over and prep f/move. RID camp, mechanic and parts houses, welding shop. Load trailers. Scope down substucture. Rig released @OO:OOhrs 8/26/2004 to CLU#9. Printed: 2/28/2007 2:27:51 PM e e Page 1 of 31 Marathon Oil Company Operations Summary Report SUSAN DIONNE 2 SUSAN DIONNE 2 ORIGINAL COMPLETION GLACIER DRILLLlNG GLACIER DRILLING I Sub From - To Hours Code I Code Phase 5.00 NUND . TREE CMPPRF Legal Well Name: Common Well Name: Event Name: Contractor Name: Rig Name: Date 9/13/2004 9/18/2004 9/21/2004 9/22/2004 9/23/2004 09:00 - 14:00 08:00 - 08:30 08:30 - 09:30 09:30 - 13:30 13:30 - 16:30 08:00 - 08:30 08:30 - 09:00 09:00 - 10:30 10:30 - 11 :00 11 :00 - 15:30 15:00 - 16:00 16:00 - 17:00 10:30 - 18:30 08:00 - 18:00 0.50 SAFETY MTG_ CMPPRF 1.00 RURD_ ELEC CMPPRF 4.00 RUNPUL ELEC CMPPRF 3.00 , ¡ ! RUNPUJ ELEC ! '. CMPPRF 0.50 SAFETY MTG_ CMPPRF 0.50 RURD_1 ELEC CMPPRF , I 1.50 RUNPULj ELEC CMPPRF 0.50 RUNPUY ELEC CMPPRF I 4.50 RUNPUÿ ELEC CMPPRF 1.00 RUNPUU ELEC CMPPRF 1.00 RURD_i ELEC CMPPRF 8.00 RURD_ì OTHR CMPPRF 10.00 RURD_IOTHR CMPPRF ! 9/24/2004 08:00 - 18:00 10.00 RURD - OTHR CMPPRF 9/25/2004 07:00 - 07:30 0.50 SAFETY MTG_ CMPPRF 07:30 - 08:00 0.50 RURD - COIL CMPPRF 08:00 - 09:30 1.50 WAlTON EQIP CMPPRF 09:30 - 11 :30 2.00 TEST_ !EQIP CMPPRF 11 :30 - 12:30 1.00 TEST !EQIP CMPPRF Start: 9/17/2004 Rig Release: Rig Number: 1 Spud Date: 7/29/2002 End: Group: Description of Operations Vetco and Veco crane NU 4-1116", 10K rental frac tree and tested to 10,000 psi. Held PJSM with Expro Wireline. MIRU Expro Wireline to tag PBTD with gauge ring and run a slim hole radial cement bond tool. RIH with 3.80" OD gauge ring and junk basket and could not pass 2850' KB. Tried 3.75" and 3.65" gauge rings without success. Removed junk basket and added another weight bar. RIH and worked past 2850'. RIH and tagged PBTD at 10950' KB with 3.65" OD gauge ring. POOH and LD gauge ring. Worked on troubleshooting radial cement bond tool computer problems without success (laptop not communicating with panel). Decided to shut down and take wireline truck to shop for additional troubleshooting. Will attempt CBL again when Expro is ready. Held PJSM with Expro Wireline. MIRU Expro Wireline to run a slim hole radial cement bond tool and memory GRlQuick Baseline Temperature. RIH with CBL and Quick Temp tools. Correlated depth with GR on Reeves Induction Log run 20-Aug-2004. Tagged PBTD at 10,963' KB. Logged CBL repeat from 10,942'-10,700' KB. Dropped down and started main pass. Logged main pass CBL and memory temperature. Pulled hard off bottom (4600#) and then dropped back to 2500-2700# tension. Logged from 10,942' to cement top at 1104' KB. POOH and LD logging tools. RDMO Expro Wireline. Weaver Bros. delivered Powerwell Services (PWS) well test equipment. ASRC delivered liner and berm and spotted under test equipment. ASRC delivered rental front-end loader. Airport Rental delivered two light plants, air compressor, and 65 KW generator. Weaver Bros. delivered MOC chicksan, gas buster, and barrel flow line weights. S&R delivered two portable toilets and a 30-yd dumpster. Cook Inlet Safety delivered LEL and H2S monitoring equipment. Vetco delivered rental flowback manifold. Set Rain-for-Rent and MOC flowback tanks. RU MOC gas buster on top of flowback tanks and chained down. Set Vetco rental flowback manifold. Layed MOC 2" 1502 chicksan from PWS separator to gas buster and to sales line. MIRU Cook Inlet Safety gas detection system. Delivered and set MOC vent stack and base. Tied in PWS lines from separator to vent stack. Udelhoven tied in PWS to rental generator. Filled PWS separator with glycol water. Finished RU PWS and MOC flowbackltest equipment. Tested flowback lines to 100 psi with air. MIRU BJ Coiltech coil tubing unit, fluid pumper, and nitrogen pumper. Continued rigging up Cook Inlet Safety. Held PJSM with BJ Coiltech. Took BJ Coil tech injector head to wellhead. Wait on Veco vac truck with fresh water for CT pressure test. RU vac truck to BJ Coiltech. Pressure tested BJ CT, pump and kill lines, and BOP to 200/4500 psi with fresh water. Pressure tested PWS flowback line to separator to 200/4500 psi with fresh water. Pressure tested MOC chicksan from separator to sales line to 200/1000 psi with fresh water. Cleared fluid from chicksan line with air. Printed: 2/28/2007 2:28:09 PM Legal Well Name: Common Well Name: Event Name: Contractor Name: Rig Name: Date 9/25/2004 12:30 - 14:30 e ,e Page 2 of 31 Marathon Oil Company Operations Summary Report 14:30 - 17:00 2.50 WAITO~ EQIP CMPPRF 17:00 - 20:00 3.00 RUNPU ¡COIL CMPPRF 20:00 - 21 :30 1.50 JET iN2 CMPPRF -I i 21 :30 - 23:30 2.00 RUNPUL! COIL CMPPRF 23:30 - 04:00 4.50 RURD I COIL CMPPRF 9/30/2004 07:00 - 08:00 1.00 SAFETYIMTG CMPPRF I - I 08:00 - 10:30 2.50 RURD iELEC CMPPRF SUSAN DIONNE 2 SUSAN DIONNE 2 ORIGINAL COMPLETION GLACIER DRILLLlNG GLACIER DRILLING C d I' Sub I From - To Hours 0 e Code I Phase I ! 2.00 RUNPULJ COIL CMPPRF 10:30 - 12:00 12:00 - 13:00 13:00 - 14:00 14:00 - 15:00 15:00 - 15:30 15:30 - 16:30 10/1/2004 07:00 - 07:30 07:30 - 09:00 09:00 - 11 :30 11 :30 - 13:30 1.50 WAITONi EQIP CMPPRF 1.00 RURD_I ELEC CMPPRF ! 1.00 RUNPUU ELEC CMPPRF I ! 1.00 WORK . ELEC CMPPRF 0.50 RUNPüL[ ELEC CMPPRF 1.00 RURD i ELEC CMPPRF -¡ i I i 0.50 SAFETY! MTG_ CMPPRF i 1.50 RURD ELEC CMPPRF -I 2.50 RUNPUY ELEC CMPPRF í 2.00 RUNPUU EQIP CMPPRF 13:30 - 16:00 2.50 RUNPUy EQIP CMPPRF ! I 10/6/2004 11 :30 - 12:00 0.50 SAFETY! MTG - CMPPRF 12:00 - 14:30 2.50 RURD_I, ELEC CMPPRF Start: 9/17/2004 Rig Release: Rig Number: Spud Date: 7/29/2002 End: Group: Description of Operations RIH with 2" wash nozzle, 4' straight pipe, double flapper check, and CT connector on 1-112" coil tubing to 500'. Began pumping nitrogen at 450 scfm to unload 6% KCL water from hole. RIH to 5000' and shut down due to wait on mechanic to repair nitrogen unit. Wait on BJ Services mechanic. Repaired nitrogen unit. Cooled down nitrogen unit and RIH with coil tubing pumping 450 scfm nitrogen and tagged PBTD at 10,957' KB. Jetted nitrogen at 450 scfm while on bottom monitoring 6% KCL water return volume. POOH jetting nitrogen at 450 scfm until fluid returns ceased. Recovered all but 20 bbls. of the 6% KCL water fluid in the wellbore. Closed choke and pressured up well to 1200 psi with nitrogen. RDMO BJ Coiltech. Filled out work permit. Held PJSM with PWS well testers, Expro perforators, and MOC personnel to review operational plan and identify potential hazards. Spotted Expro wireline unit and boom truck. MU lubricator and grease head. MU WL BOP and pump-in tee. Expro discovered that they brought the wrong tree connection. MU 3.75" O.D. gauge ring with weight bar and jars. Wait on delivery of proper tree connection to lubricator. Flange up wireline BOP and pump-in tee to top of swab valve. PU lubricator and gauge ring tool assembly and MU to WL BOPs. Pressure tested lubricator to 1250 psi nitrogen WHP. RIH with 2.80" gauge ring to 2750' KB. Stopped RIH because trapped torque in wireline turned the top shieve which wrapped the wireline to and from the shieve. Unwrapped wireline below shieve. POOH with gauge ring. LD lubricator and RD wireline. Wireline is damaged about 2800' from the end due to wrapping problems described above. Discussed options with Expro. Decided to change out to run Expro's smaller (7/32") wireline and rig up to perforate tomorrow. Filled out work permit. Held PJSM with PWS well testers, Expro perforators, and MOC personnel to review operational plan and identify potential hazards. PU lubricator and gauge ring tool assembly and MU to WL BOPs. Pressure tested lubricator to 1250 psi nitrogen WHP. RIH with 2.80" gauge ring on 7/32" wireline to 2750' KB. Stopped RIH because trapped torque in wireline turned the top shieve which wrapped the wireline. POOH with gauge ring. Armed 20' 3-3/8" carrier and RIH with 3.375" OD perforating gun loaded 18' with SDP-3125-311 NT3, 25 gm. charges. 6 SPF on CCL to 4130' KB and shieve wrapped again. Wireline is slightly stranded at wrap point. Unwrapped shieve and POOH. LD lubricator. Disarmed perforating gun. SDFN. Attempting to identify and secure delivery of a wireline swivel. Filled out work permit. Held PJSM with PWS well testers, Expro perforators, and MOC personnel to review operational plan and identify potential hazards. PWS blew down nitrogen surface pressure to 1000 psi while waiting on Expro Wireline. MU lubricator. MU WL BOP's and pump-in tee to top of swab valve. Printed: 2/28/2007 2:28:09 PM Legal Well Name: Common Well Name: Event Name: Contractor Name: Rig Name: Date From - To 1 0/6/2004 12:00 - 14:30 14:30 - 17:30 17:30 - 19:00 19:00 - 20:00 1017/2004 07:00 - 07:30 e - Page 3 of 31 Marathon Oil Company Operations Summary Report SUSAN DIONNE 2 SUSAN DIONNE 2 ORIGINAL COMPLETION GLACIER DRILLLlNG GLACIER DRILLING Hours Code I ¿>~dbe Phase 2.50 RURD_i ELEC CMPPRF 3.00 RUNPUY ELEC CMPPRF ¡ I 1.50 RUNPUY ELEC CMPPRF I \ 1.00 RURD_ ELEC CMPPRF 0.50 SAFETY MTG_ CMPPRF 07:30 - 09:00 1.50 RURD_I ELEC CMPPRF I 09:00 - 11 :30 2.50 RUNPUL! ELEC CMPPRF I I 11 :30 - 13:00 1.50 RUNPUU ELEC CMPPRF ! 13:00 - 16:00 3.00 RURD - ELEC CMPPRF 16:00 - 17:30 17:30 - 18:30 10/8/2004 12:30 - 13:00 13:00 - 15:00 15:00 - 18:00 18:00 - 20:00 20:00 - 21 :30 10/13/2004 17:00 - 17:30 I 1.50 RUNPULi ELEC CMPPRF i 1.00 RURD_. ELEC CMPPRF ! 0.50 SAFETY I MTG_ CMPPRF i I 2.00 RURD_i ELEC CMPPRF i 3.00 RUNPUL! ELEC CMPPRF 2.00 RUNPUy ELEC CMPPRF 1.50 RURD -i ELEC CMPPRF i 0.50 SAFETY! MTG_ CMPSTM Start: 9/17/2004 Rig Release: Rig Number: 1 Spud Date: 7/29/2002 End: Group: Description of Operations MU CCL and wireline swivel. Check fire. Armed perforating gun. Pressure tested lubricator to 1000 psi nitrogen WHP. Armed 20' 3-3/8" carrier and RIH with 3.375" OD perforating gun loaded 18' with SDP-3125-311 NT3, 25 gm. charges, 6 SPF on CCL. Correlated depth with Expro GR-CCL log run Sept-20-2004 and Reeves Induction Log run 20-Aug-2004. Bled nitrogen surface pressure from 1000 to 900 psi while running in hole from 5000' KB. Perforated 10,836-10,854' KB with 900 nitrogen psi WHP. POOH with gun. WHP remained at 900 psi for 20 minutes while POOH. LD lubricator and perforating gun- all shots fired and round. Monitor well for night. Filled out work permit. Held PJSM with PWS well testers, Expro perforators, and MOC personnel to review operational plan and identify potential hazards. PWS blew down nitrogen surface pressure to 1000 psi while waiting on Expro Wireline. MU lubricator. MU WL BOP's and pump-in tee to top of swab valve. MU CCL and wireline swivel. Check fire. Armed perforating gun. Pressure tested lubricator to 900 psi nitrogen WHP. Armed 20' 3-3/8" carrier and RIH with 3.375" OD perforating gun loaded 20' with SDP-3125-311 NT3, 25 gm. charges, 6 SPF on CCL. Correlated depth with Expro GR-CCL log run Sept-20-2004 and Reeves Induction Log run 20-Aug-2004. Perforated 10,816-10,836' KB with 900 nitrogen psi WHP. POOH with gun. WHP remained at 900 psi for 30 minutes while POOH. LD lubricator and perforating gun- all shots fired and round. Armed 20' 3-3/8" carrier and RIH with 3.375" OD perforating gun loaded 20' with SDP-3125-311NT3, 25 gm. charges, 6 SPF on CCL. Correlated depth with Expro GR-CCL log run Sept-20-2004 and Reeves Induction Log run 20-Aug-2004. Perforated 10,796-10,816' KB with 900 nitrogen psi WHP. POOH with gun. WHP remained at 900 psi for 20 minutes while POOH. LD lubricator and perforating gun- all shots fired and round. Monitor well for night. Filled out work permit. Held PJSM with PWS well testers, Expro perforators, and MOC personnel to review operational plan and identify potential hazards. PWS blew down nitrogen surface pressure to 1000 psi while waiting on Expro Wireline. MU lubricator. MU WL BOP's and pump-in tee to top of swab valve. MU CCL and wireline swivel. Check fire. Armed perforating gun. Pressure tested lubricator to 900 psi nitrogen WHP. Armed 36' 3-3/8" carrier and RIH with 3.375" OD perforating gun loaded 36' with SDP-3125-311NT3, 25 gm. charges, 6 SPF on CCL. Correlated depth with Expro GR-CCL log run Sept-20-2004 and Reeves Induction Log run 20-Aug-2004. Perforated 10,671-10,707' KB with 900 nitrogen psi WHP. POOH with gun. WHP remained at 900 psi for 2 hours while POOH. LD lubricator and perforating gun- all shots fired and round. RDMO Expro Wireline. PWS to blow well down from 900 to 500 psi in 2 hours, shut the well in for 30 minutes to check for a buildup in pressure, and then flow the well down in 100 psi/hr increments to 0 psi. If the well begins to flow back formation gas, the testers will choke the pressure back to 1100 psi and monitor flowrate. Held PJSM. Printed: 2/28/2007 2:28:09 PM e - Marathon Oil Company Operations Summary Report MIRU Expro Wireline Unit. Hold PJSM with Expro, PWS testers, and Marathon personnel. MU and PU 3.60" 00 gauge ring, weight bars, jars, and CCUGR. SICP was 110 psig. RIH to 10,900' MD with CCLlGR and logged up to 10,530' MD with GRlCCL without problems. Noted both set of perforations on depth. POOH and LD gauge ring. Hold PJSM to discuss hazards of explosives. Check fire. MU Owen 10K CIBP and setting sleeve. RIH with CIBP and correlated depth with Expro CBL. Set top of CIBP at 10,770' MD. PUH and then RIH and tagged CIBP at proper depth. POOH with CCL and setting tool. BJ Services moved in ancillary pump equipment and TMV van. Blew down 110 psi WHP while POOH. Gas is formation gas with 0.57 sp. gr. RDMO Expro wireline. Hold PJSM with BJ Services. PWS testers, and Marathon personnel. Filled out work permit. MIRU BJ Services fluid pump to break down the Tyonek Class II perforation interval, 10671'-10707' MD. Spotted fluid pumper and then BJ Services realized that the wrong fluid pumper was delivered and was inoperable. Mixed surfactant and clay stabilizer into 300 bbls 6% KCL water in Rain-for-Rent tank while waiting for delivery of proper fluid pumper. Laid treating lines and connected to frac tree. SIWHP was 15 psig. MIRU BJ Services fluid pumper and made final pump line tie-in. Spotted TMV (frac van) and tied pressure tranducer to 4-1/2" annulus valve. Hold PJSM with BJ Services, PWS testers, and Marathon personnel. Bled down 15 psig well pressure to vent stack. Close tree valves. Pressure test pump lines to 7000 psi. BJ troubelshot flow meters. Unable to open pressure locked swab valve. Called Vetco to deliver power gate pressure relief tool. equalized pressure differential on swab valve. Filled casing with 123 bbls. 6% KCL water (26 bbls calculated water influx). Initiated fracture with 4200 psi surface treating pressure. Pumped KCL at 4.7 BPM and 2560 psig. Increased rate to 8.8 BPM at 2530 psi. Dropped injection rate to 6.0 BPM at 2250 psi. Dropped injection rate to 3.3 BPM at 2020 psi. Shut down with 158 bbls. total KCL water pumped (35 bbls into formation) and monitored falloff pressure for 1/2 hour. ISIP was 1835 psig. Final pressure after 1/2 hr. was 975 psi. Initiated second pump in at 8.9 BPM and 2500 psi pumping an additional 32 bbls. KCL water into formation (Total pumped was 190 bbls with 67 bbls into formation). Shut down pumps and monitored pressure for 1/2 hour. ISIP was 1900 psi and final pressure after 1/2 hour was 1070 psi. 3.00 RURD_ STIM CMPSTM RDMO BJ Services pumping equipment. Turned well to PWS testers with 1060 psi WHP. Flowed well from 1730 hrs 10/14/2004 to 0530 hrs 10/15/2004 recovering 34 bbls KCL load water with 5 psi final FCP. Continue to flow well at about 24 BPD average KCL water flow rate. 7.50 RURD _¡ STIM CMPSTM 10/15-10/19/2004: MIRU BJ Services frac equipment. Spotted 3 Rain-for-Rent tanks and filled with 6% KCL water. Steam-on-Wheels heated KCL water to 85 deg F. Delivered 20/40 Ottawa sand and Legal Well Name: SUSAN DIONNE 2 Common Well Name: SUSAN DIONNE 2 Event Name: ORIGINAL COMPLETION Contractor Name: GLACIER DRILLLlNG Rig Name: GLACIER DRILLING I ' Date From - To Hours Code i Sub Phase ¡COde 10/13/2004 17:30 - 19:00 1.50 RURD ' ELEC CMPSTM 10/14/2004 08:00 - 08:30 0.50 SAFETY I MTG_ CMPSTM 08:30 - 10:00 1.50 RURD_I ELEC CMPSTM 10:00 - 11 :30 1.50 RUNPULI ELEC CMPSTM I 11:30 - 13:00 1.50 RUNPUJ ELEC CMPSTM 13:00 - 13:30 0.50 RUNPUL! ELEC CMPSTM I 13:30 - 15:00 1.50 RUNPUL ELEC CMPSTM 15:00 - 17:00 2.00 RUNPUL ELEC CMPSTM 17:00 - 18:30 1.50 RURD ELEC CMPSTM 10/15/2004 08:00 - 08:30 0.50 SAFETY MTG_ CMPSTM 08:30 - 11 :00 2.50 RURD - STIM CMPSTM ¡ i I I 11 :00 - 12:00 1.00 RURD _iSTIM CMPSTM I 12:00 - 12:30 0.50 SAFETYi MTG CMPSTM 12:30 - 14:00 1.50 TEST_I EQIP- CMPSTM 14:00 - 15:00 1.00 TEST_IEQIP CMPSTM 15:00 - 15:30 0.50 TEST_I EQIP CMPSTM 15:30 - 16:00 0.50 PUMP _!WTR_ CMPSTM 16:00 - 16:30 0.50 PUMP - WTR_ CMPSTM I j I I 16:30 - 17:30 1.00 PUMP 'WTR - CMPSTM 17:30 - 20:30 10/20/2004 09:00 - 16:30 Page 4 of 31 Start: 9/17/2004 Rig Release: Rig Number: Spud Date: 7/29/2002 End: Group: Description of Operations Printed: 2/28/2007 2:28:09 PM Legal Well Name: Common Well Name: Event Name: Contractor Name: Rig Name: Date From - To 10/20/2004 09:00 - 16:30 e e Page 5 of 31 Marathon Oil Company Operations Summary Report SUSAN DIONNE 2 SUSAN DIONNE 2 ORIGINAL COMPLETION GLACIER DRILLLlNG GLACIER DRILLING C I Sub· Hours ode. Code Phase I 7.50 RURD_!STIM CMPSTM 16:30 - 01 :00 8.50 RUNPUW COIL CMPSTM i 10/21/2004 06:30 - 09:30 3.00 RURD STIM CMPSTM 09:30 - 10:00 0.50 SAFETY MTG_ CMPSTM , 10:00 - 11 :00 1.00 RURD_lsTIM CMPSTM 11 :00 - 12:00 1.00 TEST_ ¡EQIP CMPSTM 12:00 - 13:30 1.50 PUMP - FRAC CMPSTM 13:30 - 15:00 15:00 - 17:30 17:30 - 18:30 18:30 - 19:30 19:30 - 20:00 20:00 - 06:00 10/22/2004 06:00 - 08:00 08:00 - 10:00 10:00 - 11 :00 11 :00 - 12:30 1.50 RURD_ STIM CMPSTM 2.50 RURD_, COIL CMPSTM 1.00 RURD_ COIL 1.00 TEST _ EQIP CMPSTM CMPSTM 0.50 SAFETY MTG_ CMPSTM 10.00 JET_ WTR_ CMPSTM 2.00 JET _ WTR_ CMPSTM 2.00 JET_ WTR CMPSTM 1.00 JET _ WTR_ CMPSTM 1.50 JET _ N2 CMPSTM Start: 9/17/2004 Rig Release: Rig Number: Spud Date: 7/29/2002 End: Group: Description of Operations FlexSand proppant and placed in Sand Kings. Layed pump and suction lines. Veco set MOC sand buster. Connected sand buster to wing valve and to PWS choke manifold. Layed auxilliary lines with valves to gas buster and to sales line. MIRU BJ Coiltech coil tubing unit and pump lines. MU coil tubing BOP and pump-in tee to top of Stinger Y frac head. SDFN. BJ Services finished rigging up frac equipment and lines. Hold PJSM. Discuss slips trips and falls. High pressure lines and frac operations. Production system and emergency evacuation / accident plan. Veco roustabouts finished rigging up MOC flowback lines. Pressure tested BJ Services pump lines to 300/8500 psig and flowback line from tree through sand buster to PWS choke skid to 300/5000 psi. Spent 1/2 hour trying to get pumps primed. Fraced Tyonek perfs from 10671'-10707'. Treated with wI BJ Lightning_V_2200 wtr based system at 15-16 BPM. Ramp 2-8.0 ppa. Max surface pressure = 6700 psig. Placed 36,700 Ibs prop (87.5 % 20/40 Ottawa & 12.5% 12/20 Flex Sand-100% of design). Treating pressure was 2400 psi Well screened out with 17,500 Ibs. of 8 ppg in formation and 32,200 Ibs in well bore. Total fluid load = 556 bbls (includes 162 bbls. 6% KCL water well bore volume plus 394 bbls. frac fluid). Tagged pad w/ ProTechnics Sc-46 ZWLD, 1-6 ppg proppant with Sb-124 ZW, and 8 ppg proppant with Ir-192 ZW RA tracers. Final pressure after pumping ceased stabilized around 5365 psi. RD BJ Services pump lines. PWS opened well to sand buster with a quick pressure bleed off to 0 psi. Held PJSM with BJ CoilTech, PWS, and Veco personnel. Warm up BJ CoilTech coil tubing unit and fluid pumper. PU injector head and MU to top of CT BOP. Lay suction line to Rain-for-Rent tank manifold. S&R vac truck mixed FRW-14 friction reducer in 750 bbls 6% KCL remaining from frac to use for coil tubing cleanout. Pumped pig through coil tubing. Pressure tested lines to Pressure tested pump lines to 250/5500 psi and CT BOP's to 250/4500 psi. Held PJSM with all personnel on location. RIH with 1-3/4" chisel nozzle, circ sub, dbl. flapper, 3' straight bar, and dimple-on connector on 1-3/4" CT. Pumped 6% KCL water at 1 BPM while RIH. Tagged hard sand top at 6843' and increased KCL rate to 2.5 BPM. Washed sand at 10-15 fpm ct injection rate to 9800' MD. Getting steady sand returns-no formation gas. S&R vac trucks worked all night transfering and filtering KCL water. Washed frac sand from well bore with 1-3/4" chisel nozzle, circ sub, dbl. flapper, 3' straight bar, and dimple-on connector on 1-3/4" CT. Washed frac sand at 10-15 fpm ct injection rate at 2.5 BPM from 9800' to 10,750' CTM. Getting steady sand returns-no formation gas. Circulated 1-1/2 bottoms up with KCL water at 2.3 BPM until sand returns dropped to a trace. Dropped ball and displaced with 30 bbls KCL water to shift sleeve in nozzle redirecting flow upward. Metered LEL from top of gas buster at 2%. Continued jetting KCL water (121 bbls) with CT on bottom while BJ worked to prime the nitrogen unit deck engine. Started deck engine and cooled down nitrogen pumper. With CT still at 10740', pumped 1000 scfm nitrogen and no fluid. Printed: 2/28/2007 2:28:09 PM e e Page 6 of 31 Marathon Oil Company Operations Summary Report CMPSTM POOH at 20 fpm @ 1000 scfm. Increased N2 to 1500 scfm for 10 min. Dropped N2 rate to 750 scfm while POOH at 50 fpm. LEL measured at 2% at gas buster. Dropped N2 to 450 scfm at 9100'. Cut out target tee at gas buster. Took well to sand buster through PWS line and replaced target tee. Continued POOH to 6700' w/N2 at 450 scfm. WHP decreasing steadily. Decided to RIH and jet out frac fluid entry. CMPSTM RIH with coil tubing pumping N2 at 450 scfm. Started picking up fluid at around 7000' MD. RIH and tagged sand at 10673' (2' into perfs). Stopped pumping nitrogen. Recovered 133 bbls. of 556 bbl total load fluid (162 bbls KCL water in well bore plus 394 bbls frac fluid). CMPSTM POOH with coil tubing. CMPSTM Shut well in and rigged back injector head. Closed and manually locked CT blind rams. Installed night cap. Turned well to PWS testers. Will plan to jet well with nitrogen again tomorrow morning, if necessary. Hold PJSM. Discuss slips trips and falls. High pressure lines and coil tubing operations. Production system and emergency evacuation I accident plan. Layed suction line to fluid tanks. MU injector head to CT BOP and shell tested to 1000 psi. RIH with chisel bit on coil tubing without pumping. Tagged hard at 2850' MD. POOH to inspect nozzle for potential sand plugging. Nozzle not plugged but decided to change to 2-1/8" chisel nozzle. RIH with 2-1/8" OD chisel bit on coil tubing pumping fluid at 0.5 BPM and N2 at 400 scfm to 2700'. Increased fluid rate to 1.5 BPM at 2700'. Washed through sand bridge 2850-2855' MD. Increased coil tubing running rate to 50 fpm. Circulated 800 scfm nitrogen RIH to 5190'. Tagged and worked through 4' sand bridge. RIH and circulated through sand bridge 6073'-6104' at 2 BPM KCL water and 400 scfm N2. RIH pumping N2 at 800 scfm with no fluid to 10690' and tagged hard. PUH 200' and started KCL water at 2.0 BPM and N2 at 300 scfm. CMPSTM RIH and tagged high at 10,649'. Worked fill depth down to 10661' in 3 hours. Full returns with a small amount of coal for about 10-15 minutes followed by a large amount of FlexSand (fill quart strainer in 4-5 minutes) and a trace of frac sand. Tried varying fluid and nitrogen rates without successful movement downhole. POOH to 6000' and jetted well dry to surface with nitrogen to attempt to move fill uphole and "fluff" it up while maintaining 50% underbalance on formation. RIH while pumping nitrogen at 400 scfm. Tagged fill at 10670' and could not wash off. Total fluid recovery today was 84 bbls. Total frac load recovery of 217 bbls (39%) of 556 bbls. load. POOH with coil tubing and BHA without pumping. Shut well in and rigged back injector head. Closed and manually locked CT blind rams. Installed night cap. Turned well to PWS testers. Plan to PU motor and mill to cleanout fill with coil tubing on 10/24/2004. BJ CoilTech crew needs rest. Hold PJSM. Discuss slips trips and falls. High pressure lines and coil tubing operations. Production system and emergency evacuation I accident plan. Layed suction line to fluid tanks. PU injector head and MU two joints of lubricator. Cut coil tubing and installed Weatherford coil connector. Date SUSAN DIONNE 2 SUSAN DIONNE 2 ORIGINAL COMPLETION GLACIER DRILLLlNG GLACIER DRilLING Sub From - To Hours Code Code Phase Legal Well Name: Common Well Name: Event Name: Contractor Name: Rig Name: 10/22/2004 11:00-12:30 1.50 JET_ N2_ 12:30 - 14:30 2.00 JET_ N2_ 14:30 - 16:00 16:00 - 17:30 1.50 RUNPUL COIL 1.50 RURD_ COIL 1 0/23/2004 07:00 - 07:30 0.50 SAFETY MTG_ CMPSTM 07:30 - 09:00 1.50 RURD_I COIL CMPSTM I I 09:00 - 10:00 1.00 RUNPUq COIL CMPSTM 10:00 - 10:30 0.50 RUNPUL COIL CMPSTM 10:30 - 15:00 4.50 JET_ N2 - CMPSTM 15:00 - 18:00 3.00 JET _ N2_ 18:00 - 19:00 1.00 JET_ N2 - CMPSTM 19:00 - 21 :00 2.00 RUNPUL COIL CMPSTM 21:00 - 22:30 1.50 RUNPUL COIL CMPSTM 22:30 - 00:00 1.50 RURD - COIL CMPSTM 10/25/2004 07:00 - 07:30 0.50 SAFETYIMTG - CMPSTM 07:30 - 10:30 3.00 RURD - ¡COIL CMPSTM Start: Rig Release: Rig Number: Spud Date: 7/29/2002 End: Group: 9/17/2004 Description of Operations Printed: 212812007 2:28:09 PM · e e Page 7 of 31 Marathon Oil Company Operations Summary Report SUSAN DIONNE 2 SUSAN DIONNE 2 ORIGINAL COMPLETION GLACIER DRILLLlNG GLACIER DRILLING I Sub From - To Hours Code [code Phase Legal Well Name: Common Well Name: Event Name: Contractor Name: Rig Name: Date 10/25/2004 3.00 RURD_I COIL 07:30 - 10:30 10:30 - 12:30 2.00 RUROJ COIL 12:30 - 14:30 I 2.00 RURD_!COIL I II I I 2.00 TEST ¡ EQIP -I 6.50 JET_I N2_ 14:30 - 16:30 16:30 - 23:00 23:00 - 00:30 1.50 RURO - ICOIL 10/27/2004 08:00 - 08:30 0.50 SAFETY MTG_ 08:30 - 09:30 1.00 RURD - COIL 09:30 - 11 :30 2.00 RURD_IELEC I 11 :30 - 12:30 1.00 RUNPuLi ELEC i 12:30 - 13:30 1.00 RUNPUL! ELEC 13:30 - 15:00 1.50 RURD_I ELEC 10/28/2004 07:00 - 07:30 0.50 SAFETY] MTG_ 07:30 - 11 :00 3.50 RURD !COIL -¡ Start: Rig Release: Rig Number: 9/17/2004 Spud Date: 7/29/2002 End: Group: Description of Operations ¡ I CMPSTM 'MU MHA and pull tested. MU motor and mill. Took injector to [wellhead. Shell tested lubricator and BOP. Began to RIH and tagged ¡ up in coil tubing BOP. Hydraulic and manual indicators showed all I rams fully open. Set back injector head and inspected CT BOP. Slip 1 rams appear to be damaged and will not fullly retract. Appears that BJ I CoilTech personnel did not activate hydraulic lock and that hydraulic i pressure bled off allowing rams to partially close. CMPSTM ¡ LD injector head and Weatherford motor and mill. ND CT BOP's while ¡waiting for replacement BOP's. NOTE: Also inspected 2-1/8" wash : nozzle from previous run. Sleeve in wash nozzle had been shifted I which directs all flow upwards. However, no ball had been dropped to i shift sleeve. It is believed that the sleeve was either not repinned ! correctly before running in the hole or that an ice plug from the low side I of the coil tubing seated and shifted the sleeve. The fact that the ! sleeve was shifted explains the difficulty washing through the small I bridges uphole on 10/22/04 and not being able to wash through sand I from 10649'-10690'. CMPSTM ! Cut off Weatherford coil connector and replaced with BJ connector. Installed 1-3/4" OD wash nozzle without sleeve, double flapper, and I hydraulic disconnect. NU 4-1/16" CT BOP and took injector head to I wellhead. CMPSTM ¡ Pressure tested CT BOP to 250/4500 psi. Pump lines tested to 6000 I psi. CMPSTM ! RIH with 1-3/4" wash nozzle to 1800'. Pumped nitrogen at 350 scfm to i 4000'. Fluid level at 2900' from change in pump pressure. Started I getting fluid returns when at 4000'. Increased nitrogen to 620 scfm [from 4000' to tag depth at 10753'. PUH to 9900' and ran back to 10753' I continuing to pump nitrogen at 620 scfm. No sand fill encountered. I POOH pumping at 620 scfm until fluid returns ceased. Stopped ! pumping nitrogen at 2000'. Turned well to PWS testers with FCP at 1235 psi. POOH with coil tubing. Shut in swab valve. NOTE: ¡Recovered 104 bbls fluid today for a total recovery of 321 bbls (58%) of ! 556 bbl. load. CMPSTM : Shut well in and rigged back injector head. Closed and manually . locked CT blind rams. Installed night cap. CMPPRF I Held PJSM with BJ CoilTech, Veco crane, PWS tester, and Expro j wireline personnel. CMPPRF I BJ CoilTech rigged down coil tubing BOP from top of swab valve. NU I night cap on top of BJ pump-in tee. CMPPRF i MIRU Expro wireline to set a retrievable bridge plug above perforations, i 10671'-10707' MD. MU lubricator and grease head. MU 3.80" OD ¡ gauge ring, spang jars, weight bar, CCL, and wireline swivel. Take I lubricator and tool string to wellhead. CMPPRF i RIH with 3.80" gauge ring easily to 7750' MD. Set down and attempted I to PUH. Stuck at 7729' with no spang jar action and no CCL signal. I Worked line for 20 min and pulled loose with returned CCL response. CMPPRF ! POOH with gauge ring and CCL. Tool string had sand grit all over it. CMPPRF I RDMO Expro wireline. Set night cap on coil tubing flow tee. Plan to ! clean out sand from well with coil tubing and KCL water tomorrow. ISWIFN. CMPPRF ! Held PJSM with BJ CoilTech, Veco crane, S&R vac truck, and PWS ¡ tester wireline personnel. CMPPRF 1 NO MOC tree cap and NU BJ CoilTech CT BOP. Layed out and Printed: 2/28/2007 2:28:09 PM Legal Well Name: Common Well Name: Event Name: Contractor Name: Rig Name: Date 10/28/2004 11 :00 - 11 :30 11 :30 - 14:30 14:30 - 16:30 16:30 - 18:30 18:30 - 20:30 10/29/2004 07:00 - 08:00 08:00 - 08:30 08:30 - 09:30 09:30 - 13:00 e e Marathon Oil Company Operations Summary Report 0.50 TEST_ 3.00 JET_ IEQIP IWTR I - CMPPRF CMPPRF SUSAN DIONNE 2 SUSAN DIONNE 2 ORIGINAL COMPLETION GLACIER DRILLLlNG GLACIER DRILLING J Sub From - To Hours Code I Code Phase 07:30 - 11 :00 3.50 RURD_I COIL CMPPRF ¡ 2.00 JET_I WTR_ CMPPRF I 2.00 JET i WTR CMPPRF -I - I 2.00 RURD ! COIL CMPPRF -I 1.00 WAITONI EQIP CMPPRF 0.50 SAFETViMTG 1.00 RURD_IELEC CMPPRF I , 3.50 RUNPUJ ELEC CMPPRF I 13:00 - 14:00 1.00 RURD_!ELEC CMPPRF 14:00 - 15:00 1.00 WAITON!EQIP CMPPRF 15:00 - 16:00 1.00 RURD_ISLlK CMPPRF I ! 16:00 - 03:30 11.50 RUNPU~ SLlK CMPPRF 03:30 - RURD _! SLlK CMPPRF 10/30/2004 07:00 - 07:30 0.50 SAFETVjMTG_ CMPPRF 07:30 - 10:00 2.50 RURD - !COIL CMPPRF 10:00 - 11 :00 11:00-14:30 1.00 TEST _ ! EQIP CMPPRF 3.50 JET_ ¡WTR_ CMPPRF Page 8 of 31 Start: 9/17/2004 Rig Release: Rig Number: Spud Date: 7/29/2002 End: Group: Description of Operations connected fluid suction lines from Rain-for-Rent tanks to BJ fluid pump. Vac truck pulled on 5-6 bbls methanol water to pump through coil tubing and eliminate chance of ice plug shifting nozzle sleeve. Pumped methanol water and displaced with KCL water through coil tubing string. Installed 1-3/4" chisel nozzle. MU injector head to CT BOP. Pressure tested CT BOP to 250/4500 psi with KCL water. Opened well and noted 115 psi SICP. Blew gas pressure down quickly. RIH with wash nozzle on 1-3/4" coil tubing. Started pumping KCL water at 2.6 BPM at 800' MD. Obtained fluid returns at 2600' MD. RIH and tagged PBTD at 10755' MD. PUH above perfs to 10635' MD. Circulated bottoms up from 10635' with KCL water. Circulated a large amount of FlexSand for a 12 min. period just after getting bottoms up. Mixed and pumped a 40 bbl HEC sweep. Dropped ball to shift circulation port to direct flow upwards from end of coil tubing. Small slug of FlexSand at end of sweep. POOH with coil tubing at 100 fpm to 7000' MD pumping KCL water at 2.5 BPM. Slowed CT rate to 75 fpm from 7000' to surface to provide additional jetting through the tangent section of the hole. Shut well in and rigged back injector head and CT BOP's. Installed night cap. SWIFN. Wait on Expro wireline unit and personnel. Held PJSM with PWS tester, MOC, and Expro wireline personnel. MIRU Expro wireline to set a retrievable bridge plug above perforations, 10671'-10707' MD. MU lubricator and grease head. MU 3.80" OD gauge ring, spang jars, weight bar, CCL, and wireline swivel. Take lubricator and tool string to wellhead. SICP was 0 psi. RIH to 200' and CCL stopped working. POOH and replace CCL. RIH and tagged up at 1708' MD. Tried to work through tight spot at 1705' MD several times without success. POOH and inspected gauge ring. No sand or new marks on tools. This is the same tool string run through this area at 200 fpm without incident on 10/27/2004 report. Redressed bevel on leading edge of gauge ring. RIH and tagged at same spot. Worked tools without success. Inspected wire to ensure line without kink or strand. Added 5' weight bar between gauge ring and spang jars and RIH. Tagged at same depth and could not work through. Rig back Expro equipment. Wait on Pollard slickline. Hold PJSM. Spot Pollard slickline unit and mast truck. MU 3.80" OD gauge ring, 3.60" centralizer, spang jars, hydraulic jars, and weight bar. lubricator to wellhead. RIH and tag at 1694' KB. POOH and PU 3" drive-down bailer. Bailed solid white fine sand (may be crushed frac sand) from 1694'-1727'. SWIFN. RDMO Pollard slickline. Held PJSM with BJ CoilTech, Veco crane, and PWS tester wireline personnel. ND MOC tree cap and NU BJ CoilTech CT BOP. Layed out and connected fluid suction lines from Rain-for-Rent tanks to BJ fluid pump. Installed 1-3/4" chisel nozzle. Loaded CT with KCL water. MU injector head to CT BOP. Pressure tested CT BOP to 250/4500 psi with KCL water. Opened well and noted 0 psi SICP. RIH with wash nozzle on 1-3/4" Printed: 2/28/2007 2:28:09 PM Legal Well Name: Common Well Name: Event Name: Contractor Name: Rig Name: Date 10/30/2004 10/31/2004 11/2/2004 e e Page 9 of 31 Marathon Oil Company Operations Summary Report SUSAN DIONNE 2 SUSAN DIONNE 2 ORIGINAL COMPLETION GLACIER DRILLLlNG GLACIER DRILLING I Sub From - To Hours COde! Code Phase 11:00 -14:30 3.50 JET !WTR CMPPRF 14:30 -16:30 2.00 JET= IWTR= CMPPRF 1 16:30 - 19:00 19:00 - 20:30 20:30 - 21 :30 07:00 - 07:30 07:30 - 09:30 09:30 - 10:30 10:30 - 12:30 12:30 - 13:30 13:30 - 14:30 14:30 - 18:30 18:30 - 19:30 07:00 - 07:30 07:30 - 08:30 08:30 - 10:30 10:30 - 13:30 2.50 JET_I WTR_ CMPPRF i 1.50 JET _ 1 WTR CMPPRF I - 1.00 RURD I COIL -, ¡ 0.50 SAFETYi MTG_ 2.00 RURD_I ELEC ¡ CMPPRF CMPPRF CMPPRF I 1.00 RUNPUU ELEC CMPPRF 2.00 RUNPUU ELEC CMPPRF I ! I 1.00 RUNPUU ELEC CMPPRF 1.00 RURD _! ELEC CMPPRF I I I , 4.00 RURD_icOIL CMPPRF ! 1.00 RURD COIL 0.50 SAFETY MTG_ 1.00 RURD _I ELEC CMPPRF CMPSTM CMPSTM 2.00 RUNPUW ELEC CMPPRF 3.00 RUNPUL! ELEC CMPPRF Start: 9/17/2004 Rig Release: Rig Number: 1 Spud Date: 7/29/2002 End: Group: Description of Operations coil tubing pumping KCL water at 2.5 BPM to 10719' MD. PUH pumping to 10615' with KCL water. Mixed and pumped a 50 bbl HEC sweep. Dropped ball to shift circulation port to direct flow upwards end of coil tubing. POOH with coil tubing at 50 fpm to 6500' MD pumping KCL water at 2.6 BPM. Mixed and pumped a 25 bbl HEC sweep. PUH to 6000' and slowed CT rate to 25 fpm from 6000' to 2500' while pumping KCL water at 2.6 BPM. Mixed and pumped a 27 bbl HEC sweep. POOH to surface at 25 fpm while pumping KCL water at 2.6 BPM. Blew down coil tubing with nitrogen. Shut well in and rigged back injector head and CT BOP's. Installed night cap. SWIFN. Held PJSM with PWS tester, MaC, and Expro wireline personnel. MIRU Expro wireline to set a retrievable bridge plug above perforations, 10671'-10707' MD. MU lubricator and grease head. MU 3.80" aD gauge ring, spang jars, weight bar, CCL, and wireline swivel. Take lubricator and tool string to wellhead. SICP was 0 psi. Round trip 3.80" aD gauge ring on Expro wireline to 10657' MD. PU and RIH with Weatherford 3.770" aD WRP retrievable bridge plug, ,setting tool, Baker #10 slow-set firing head, and CCL on wireline. Set down at 2960' MD. PU and RIH with WRP. Correlated depth with Expro CBL run 20-Sept-2004. Set center of packing element on WRP at 10620' MD. Top of fishing neck at 10618.5' and bottom of WRP at 10621.8' MD. POOH logging two collars and RIH and tagged WRP at proper depth. POOH with WRP setting tool assembly. LD setting tools (setting stud was sheared properly). Released Weatherford service hand. Pressure tested Expro Bowen x Otis connection to 4100 psi with methanol water. BJ CoilTech and Veco crane operator on location to warm up equipment. RD Expro from wellhead. Connect suction lines to fluid tanks. MU 2" aD nozzle and 3' straight bar to coil tubing. Install CT BOP on top of pump-in tee. Take injector to wellhead. Pressure test CT BOP to 250/4500 psi with KCL water Opened well and attempted to pressure test the WRP to 2000 psi. Pressure bled off to 250 psi in less than one minute. Triple bocked in all surface lines and retested to 2000 psi. Pressure bled off at same slope as before and held at 250 psi. Opened bleed off tees downstream of all surface valves to ensure no fluid bypass. Appears that WRP is leaking. RD BJ CoilTech. Held PJSM with PWS tester, MaC, and Expro wireline personnel. MIRU Expro wireline to set a retrievable bridge plug above perforations, 10671 '-1 0707' MD and WRP at 10620' MD.. MU lubricator and grease head. MU 3.80" aD gauge ring, spang jars, weight bar, CCL, and wireline swivel. Take lubricator and tool string to wellhead. SICP was 0 psi. Round trip 3.80" aD gauge ring on Expro wireline to 10620' MD. Tagged leaking WRP where previously set at 10620' MD. PU and RIH with Weatherford 3.770" aD WRP retrievable bridge plug, setting tool, Baker #10 slow-set firing head, and CCL on wireline. Correlated depth with Expro CBL run 20-Sept-2004. Set center of Printed: 2/28/2007 2:28:09 PM e e Page 10 of 31 Marathon Oil Company Operations Summary Report legal Well Name: Common Well Name: Event Name: Contractor Name: Rig Name: SUSAN DIONNE 2 SUSAN DIONNE 2 ORIGINAL COMPLETION GLACIER DRlllLlNG GLACIER DRilLING C Sub From... To Hours ode Code Phase Date 11/2/2004 11/3/2004 11/4/2004 10:30 - 13:30 13:30 - 14:30 14:30 - 15:30 15:30 - 17:00 17:00 - 18:00 18:00 - 19:00 19:00 - 22:30 22:30 - 01 :00 01 :00 - 05:00 05:00 - 06:00 06:00 - 07:30 07:30 - 09:00 09:00 - 10:00 10:00 - 11 :00 11 :00 - 11 :30 11:30-13:00 13:00 - 14:00 14:00 - 16:30 16:30 - 18:00 18:00 - 18:30 07:30 - 08:00 08:00 - 09:00 09:00 - 09:30 09:30 - 10:00 10:00 - 10:30 10:30 - 13:00 3.00 RUNPUL. ELEC CMPPRF i 1.00 RUNPUU ELEC 1.00 RURD_IELEC 1.50 RURD_!COIL i I 1.00 TEST _ : PKR_ I 1.00 RURD_lcOIL i 3.50 JET_IN2_ i 2.50 JET_I N2_ 4.00 JET i N2 -1 ¡ 1.00 JET ! N2 -I - 1.50 JET_ IN2_ i 1.50 RUNPUU COIL I 1.00 RURD_iCOIL 1.00 RURD_:ELEC 0.50 SAFETY I MTG_ 1.50 RURD_IELEC CMPPRF CMPPRF CMPPRF CMPPRF CMPPRF CMPPRF CMPPRF CMPPRF CMPPRF CMPPRF CMPPRF CMPPRF CMPPRF CMPPRF CMPPRF i 1.00 RURD ¡ ELEC CMPPRF -I 2.50 RUNPUL¡ ELEC CMPPRF ! 1.50 PERF _ ! CSG CMPPRF 1 - ¡ 0.50 RURD_. ELEC CMPPRF ¡ 0.50 SAFETY l MTG 1.00 RURD_!COIL- CMPPRF CMPPRF 0.50 RURD I ELEC CMPPRF 0.50 SAFETYIMTG_ CMPPRF 0.50 RURD_ ELEC CMPPRF 2.50 RUNPUU ELEC CMPPRF Start: 9/17/2004 Rig Release: Rig Number: 1 Spud Date: 7/29/2002 End: Group: Description of Operations packing element on WRP at 10580' MD. Top of fishing neck at 10578.5' and bottom of WRP at 10581.8' MD. POOH and LD WRP setting tools. RD Expro wireline. BJ CoilTech on location warming up fluid pumper and CT unit. Had difficulty starting engines due to diesel gelling. Layed suction line from fluid pumper to Rain-for-Rent tanks. Pressure tested WRP to 2000 psi with KCL water-good test. Had to change out O-ring on tree cap to achieve test. ND MOC tree cap and NU BJ CoilTech CT BOP. Installed 2" nozzle and 3' straight bar to coil tubing. MU injector head to CT BOP. Shell tested BOP to 250/4500 psi with KCL water. RIH with coil tubing to 6700' MD at 65 fpm pumping nitrogen at 750 scfm down CT annulus and taking fluid up coil tubing to gas buster. Reverse circulated nitrogen maintaining pump pressure below 1800 psi to prevent collapsing coil tubing. RIH reverse circulating nitrogen to 10,550' MD. BJ CoilTech down one hour to reprime engine on nitrogen unit after running out of diesel. Line added to account for BJ CoilTech downtime after running out of diesel. It occurred sometime between 01 :00 and 06:00. Finished reverse circulating nitrogen to 10,550' MD. All fluid recovered from wellbore. POOH with coil tubing. Trapped 1100 psi surface nitrogen pressure on well bore for underbalanced perforating. Expro on location at 0830 hrs. RD BJ CoilTech from wellhead. Set back injector head and BOP. RU Expro wireline to perforate. Held PJSM with Expro, PWS, and MOC personnel. Armed 30' 3-3/8" carrier and take lubricator to tree. Pressure test lubricator with methanol to 3000 psi. Spent one hour thawing frozen air line hose - sometime between 11 :30 and 14:00. RIH with 3.375" OD perforating gun loaded 28' with SDP-3125-311 NT3, 25 gm. charges, 6 SPF on CCL. Correlated depth with Expro GR-CCL log run Sept-20-2004 and Reeves Induction Log run 20-Aug-2004. Perforated 10,302-10,330' KB with 1050 nitrogen psi WHP. WHP increased 15 psi. POOH with gun. WHP at 1065 psi when out of hole with gun #1. Perforating gun was dry. RD Expro from wellhead and aborted perforating for the day due to high winds. WHP remains at 1065 psi. PWS monitored pressure but did not flow well overnight. Held PJSM with BJ Coil Tech personnel and Veco crane operator. Began rigging down BJ CoilTech coil tubing equipment. RD CT BOP and flow tee from swab valve. Expro wireline on location at 0845 hrs to perforate. Started Expro equipment. SICP in AM was 1100 psi with nitrogen in well bore. RU Expro perforating equipment. BJ CoilTech rigging down. Held PJSM with Expro personnel. Armed 30' 3-3/8" carrier and take lubricator to tree. Pressure test lubricator with 1100 psi WHP. RI H with 3.375" OD perforating gun loaded 30' with SDP-3125-311 NT3, 25 gm. charges, 6 SPF on CCL. Correlated depth with Expro GR-CCL log run Sept-20-2004 and Reeves Induction Log run 20-Aug-2004. Became temporarily stuck twice around 10302' (existing top perf depth Printed: 2/28/2007 2:28:09 PM legal Well Name: Common Well Name: Event Name: Contractor Name: Rig Name: Date 11/4/2004 11/5/2004 11/6/2004 11/9/2004 11/10/2004 e e Page 11 of 31 Marathon Oil Company Operations Summary Report SUSAN DIONNE 2 SUSAN DIONNE 2 ORIGINAL COMPLETION GLACIER DRlllLlNG GLACIER DRilLING II Sub From - To Hours Code. Code Phase I 2.50 RUNPUL ELEC CMPPRF 1.50 PERF-I CSG_ CMPPRF 10:30 - 13:00 13:00 - 14:30 14:30 - 15:30 1.00 RURD - IELEC CMPPRF 15:30 - 17:30 2.00 RUNPUL ELEC CMPPRF 17:30 - 18:30 118:30 - 19:30 . 08:00 - 08:30 08:30 - 10:30 10:30 - 12:00 12:00 - 16:00 16:00 - 17:30 09:00 - 21 :00 15:30 - 16:00 16:00 - 16:30 16:30 - 19:00 07:30 - 08:00 08:00 - 09:30 09:30 - 13:30 13:30 - 14:00 14:00 - 15:00 15:00 - 18:00 , 1.00 PERF _iCSG_ CMPPRF I 1.00 RURD I ELEC 0.50 SAFETY,MTG_ 2.00 RURD_I ELEC I 1.50 LOG_ i CSG_ CMPPRF 4.00 LOG_I ELEC CMPPRF CMPPRF CMPPRF CMPPRF 1.50 RURD _i ELEC CMPPRF I 12.00 FLOW_ITEST CMPPRF , i 0.50 SAFETYi MTG_ CMPPRF 0.50 RURD ¡ OTHR CMPPRF -¡ 1 2.50 PUMP _ITRET CMPPRF 0.50 SAFETY ¡ MTG 1.50 RURD_I ELEC i I 4.00 RUNPUY ELEC CMPPRF CMPPRF CMPPRF 0.50 SAFETY I MTG_ CMPPRF 1.00 RURD . ELEC CMPPRF -¡ 3.00 RUNPUL! ELEC CMPPRF Start: 9/17/2004 Rig Release: Rig Number: 1 Spud Date: 7/29/2002 End: Group: Description of Operations from yesterday) while correlating depth. Perforated 10,272-10,302' KB with 1100 nitrogen psi WHP. WHP increased 20 psi. POOH with gun. WHP at 1065 psi when out of hole with gun #2. Perforating gun was wet. Armed 30' 3-3/8" carrier and take lubricator to tree. Pressure test lubricator with 1120 psi WHP. BJ CoilTech finished RDMO coil tubing equipment. RIH with 3.375" OD perforating gun loaded 30' with SDP-3125-311 NT3, 25 gm. charges, 6 SPF on CCL. Correlated depth with Expro GR-CCL log run Sept-20-2004 and Reeves Induction Log run 20-Aug-2004. Became temporarily stuck once around 10310' while correlating depth. Perforated 10,242-10,272' KB with 1050 nitrogen psi WHP. WHP did not increase. POOH with gun. WHP at 1050 psi when out of hole with gun #3. Perforating gun was wet. RD Expro wireline from tree. Held PJSM with Expro, PWS, and MOC. RU Expro to run static pressure gradient. Thawed out end of crane boom with Chinook heater. MU wireline BOP and pump-in tee to Otis tree connection. MU 1.375" tandem saphire P- T gauge and wireline swivel. Take lubricator to wellhead. Pressure tested to 1100 psi WHP. RIH with gauges easily to 1900' MD. Progress slowed considerably to 2200' MD. POOH to add weight bars. RIH with gauges and weight bars easily. Took 10 min. static bench at 10230' and 3 min. benches at 10100', 10000',9800',9500',9000', 8000',6000',4000',2000', and at surface while POOH. Steam-on-Wheels on location at 1230 hrs to thaw KCL water in Rain-for-Rent tanks to allow transport to G&I plant for disposal. RDMO Expro wireline. Downloaded gauges-good data. Fluid level around 10150' MD. Flow test and monitor pressure. Two S&R vac trucks hauled KCL water left over from coil tubing work to G&I for disposal. Airport Rental delivered and RU ground heater on gas buster tank to thaw ice and allow transport for disposal. Held PJSM. MIRU Pollard Hot Oiler and Weaver Bros. methanol delivery truck. Installed tree cap hanger to 2", 1502 connection on tree. MU and pressure test to 1600 psi Pollard pump line to tree cap connection. Opened tree valves. Pump 38 bbls methanol down well bore to provide 800 psi "tamp" pressure for StimTube treatment scheduled for tomorrow. Held PJSM with Expro, PWS, and MOC. MIRU Expro to run gauge ring and StimTube. Pressure tested lubricator to 750 psi WHP. Installed SPIDR gauge. Roundtripped 2.70" gauge ring, spang jars, and three tungsten weight bars to 10350' MD on wireline. PWS drew down WHP to 500 psi while tripping gauge ring. Held PJSM. Went to radio silence. MU 12' of 2" OD StimTube (12.67' overall w/2.25" OD connectors), CCL, and weight bars and pushed into lubricator. Took lubricator to wellhead. RIH with StimTube, CCL, and three tungsten weight bars. Correlated depth with Expro CBL and positioned top of propellant at 10254' MD. WHP was at 500 psi prior to detonation of StimTube. Printed: 2/28/2007 2:28:09 PM · .. Legal Well Name: Common Well Name: Event Name: Contractor Name: Rig Name: Date From - To 11/10/2004 18:00 - 19:00 19:00 - 20:00 11/11/2004 08:30 - 09:00 09:00 - 10:30 10:30 - 13:30 13:30 - 14:30 14:30 - 15:30 e e Marathon Oil Company Operations Summary Report SUSAN DIONNE 2 SUSAN DIONNE 2 ORIGINAL COMPLETION GLACIER DRILLLlNG GLACIER DRILLING ! I Sub Hours Code ¡ Code Phase ! 1.00 RUNPUY ELEC CMPPRF , 1.00 RURD J ELEC CMPPRF 0.50 SAFETYIMTG_ CMPPRF 1.50 RURD_I ELEC CMPPRF ¡ 3.00 RUNPUJ ELEC CMPPRF ! 1.00 RUNPULi ELEC CMPPRF 1.00 RURD - ELEC CMPPRF 11/12/2004 13:30 - 15:30 2.00 RURD - OTHR CMPFLW 15:30 - 16:00 0.50 SAFETYiMTG_ CMPFLW 16:00 - 16:30 0.50 RURD 10THR CMPFLW -: 16:30 - 20:00 3.50 PUMP - IN2 CMPFLW i 20:00 - 21 :00 1.00 RURD :OTHR CMPFLW 11/17/2004 09:30 - 10:00 0.50 RURD_¡ ELEC CMPPRF 10:00 - 10:30 0.50 SAFETY! MTG - CMPPRF 10:30-11:00 0.50 RURD_I ELEC CMPPRF 11 :00 - 11 :30 0.50 RURD iELEC CMPPRF 11 :30 - 13:00 1.50 RUNPUL! ELEC CMPPRF i Page 12 of 31 Start: 9/17/2004 Rig Release: Rig Number: Spud Date: 7/29/2002 End: Group: Description of Operations Detonated StimTube and line tension immediately dropped from 3100 Ibs to 1800 Ibs. POOH slowly until started getting CCL readings. POOH with StimTube tool string. WHP still at 510 psi after one hour. LD lubricator and tool string. Good propellant burn-all tools recovered. Monitored well pressure overnight. Plan to run second StimTube run tomorrow AM. Held PJSM with Expro, PWS, and MOC. MIRU Expro to shoot StimTube Run #2. Retied rope socket. MU 12' of 2" OD StimTube (12.67' overall w/2.25" OD connectors), CCL, and weight bars and pushed into lubricator. Took lubricator to wellhead. Pressure tested with 530 psi WHP. RIH with StimTube, CCL, and three tungsten weight bars. Correlated depth with Expro CBL and positioned top of propellant at 10308' MD. WHP was at 540 psi prior to detonation of StimTube. Detonated StimTube and line tension immediately dropped from 2900 Ibs to 2200 Ibs. POOH slowly until started getting CCL readings. POOH with StimTube tool string. WHP at 550 psi after one hour. LD lubricator and tool string. Good propellant burn-all tools recovered. RDMO Expro wireline. PWS will attempt to flow well overnight. If well will not flow by drawing down the WHP to 0 psi, will attempt two short buildups and flow periods and then shut well in for overnight buildup. MIRU BJ Services nitrogen unit. Spotted equipment and tied into test line off of wing valve. Held PJSM with BJ, PWS, and MOC personnel. Cooled down nitrogen unit. Installed data header to port in well cap flange. Connected SPIDR and Data Trap gauges to data header. Pressure tested pump line to 4000 psi. Opened well with 149 psi WHP (0.57 sp gr gas). Pumped nitrogen at 2000 setm until WHP reached 1500 psi. Calculated fluid level with 1500 psi WHP is 5260' MD. Note: Prior to bleeding well down from 500 psi to 0 psi yesterday, the fluid level was about 7650' MD (10150' MD fluid level plus 38 bbls methanol). Decreased nitrogen rate and held constant at 1500 setm throughout the rest of the job. Pressure climbed steadily to 3180 psi after 47 minutes pump time and then broke back to 3160 psi. Pressure climbed steadily to 3330 psi and then broke back to 3200 psi. Pressure climbed steadily to 3550 psi at 80 minutes pump time (18:07 hrs) at which time pumping prematurely ceased due to failure of centrifugal pump bushing on nitrogen unit. Total nitrogen pumped was 137000 set. Note: This volume is less than that necessary to fill the well bore at 3550 psi WHP. Most likely not all of the fluid had exited the well bore when pumping ceased. BJ Services monitored falloff pressure for 1-1/2 hours. RDMO BJ Services nitrogen unit. Left well open to SPIDR and DataTrap gauges. WHP at 21 :15 was 2810 psi (1938 hrs). Pressure fell 740 psi in 1-1/2 hours. Move in and spotted Expro perforating equipment. Held PJSM with Expro, PWS, and MOC personnel to discuss operational plan and potential hazards. RU Expro perforating equipment. Armed 20' 3-3/8" carrier and take lubricator to tree. Pressure test lubricator with 1120 psi WHP. Bled pressure down to 0 psi. Last gas gravity reading was 0.65. RIH with 3.375" OD perforating gun loaded 20' with SDP-3125-311 NT3, Printed: 2/28/2007 2:28:09 PM · .. Legal Well Name: Common Well Name: Event Name: Contractor Name: Rig Name: Date 11/17/2004 11 :30 - 13:00 13:00 - 14:30 14:30 - 15:00 15:00 - 16:00 16:00 - 17:00 17:00 - 18:00 11/18/2004 07:30 - 08:00 08:00 - 09:00 09:00 - 10:00 10:00 - 11 :00 11 :00 - 12:30 12:30 - 13:30 13:30 - 14:30 14:30 - 16:00 11/24/2004 07:30 - 08:00 08:00 - 09:30 09:30 - 14:00 14:00 - 15:00 11/30/2004 11 :00 - 11 :30 11 :30 - 13:00 e e Page 13 of 31 Marathon Oil Company Operations Summary Report 0.50 RURD_ ELEC CMPPRF 1.00 RUNPUL ELEC CMPPRF I , I, I 1.00 PERF _ I CSG_ CMPPRF I I 1.00 RURD ; ELEC CMPPRF -¡ 0.50 SAFETY! MTG CMPPRF ! - 1.00 RURD _I ELEC CMPPRF I 1.00 RUNPULJ ELEC CMPPRF ! 1.00 PERF _ICSG_ CMPPRF ! 1.50 RURD I ELEC CMPPRF -, i i 1.00 RUNPUY ELEC CMPPRF I i i I I 1.00 PERF _! CSG_ CMPPRF 1.50 RURD ¡ ELEC CMPPRF -I I i 0.50 SAFETY I MTG_ CMPPRF 1.50 RURD_! SLlK CMPPRF 4.50 RUNPUU SLlK CMPPRF 1.00 RURD_ISLlK CMPPRF 0.50 SAFETYiMTG_ CMPPRF 1.50 RURD _I ELEC CMPPRF Start: 9/17/2004 Rig Release: Rig Number: 1 Spud Date: 7/29/2002 End: Group: SUSAN DIONNE 2 SUSAN DIONNE 2 ORIGINAL COMPLETION GLACIER DRILLLlNG GLACIER DRILLING I, Sub From - To Hours Code! Code Phase ì 1.50 RUNPUJ ELEC CMPPRF i 1.50 PERF_I CSG_ CMPPRF i I Description of Operations I i 25 gm. charges, 6 SPF on CCL. Correlated depth with Expro GR-CCL i log run Sept-20-2004 and Reeves Induction Log run 20-Aug-2004. ! Perforated 10,161-10,181' KB with 15 psi WHP. WHP increased to 20 I psi. POOH with gun. WHP at 35 psi when out of hole with gun #2. All I shots fired and round. ¡Armed 41.5' 3-3/8" carrier and take lubricator to tree. Bled pressure j down from 35 psi to 0 psi. 1 RIH with 3.375" OD perforating gun loaded 40' with SDP-3125-311NT3, 125 gm. charges, 6 SPF on CCL. Correlated depth with Expro GR-CCL ! log run Sept-20-2004 and Reeves Induction Log run 20-Aug-2004. 'i Perforated 10,099-10,140' KB with 0 psi WHP. Left well open while I I POOH. All shots fired and round. I RD Expro wireline from tree. Plan to perforate additional pay tomorrow. I PWS well testers to attempt to flow well overnight. I Held PJSM with Expro, PWS, and MOC personnel to discuss ! operational plan and potential hazards. I RU Expro perforating equipment. Armed 35' 3-3/8" carrier and take ! lubricator to tree. Pressure test lubricator with 400 psi WHP. I RIH with 3.375" OD perforating gun loaded 35' with SDP-3125-311 NT3, 125 gm. charges, 6 SPF on CCL. Flowed well while RIH. Possible fluid i level at 3500' MD. Correlated depth with Expro GR-CCL log run i Sept-20-2004 and Reeves Induction Log run 20-Aug-2004. I Perforated 10,064-10,099' KB with 470 psi WHP. WHP increased to 1475 psi. POOH with gun. Flowed well while POOH. All shots fired and ¡round. Wireline twisted at top shieve just as gun reached surface which i put several kinks in the line. I Cut kinked line and retied rope socket. Armed 22' 3-3/8" carrier and I take lubricator to tree. Pressure test lubricator with 200 psi WHP. Well ¡flowing about 680 mcfd at 180 psi FTP. i RIH with 3.375" OD perforating gun loaded 22' with SDP-3125-311NT3, 125 gm. charges, 6 SPF on CCL. Correlated depth with Expro GR-CCL i log run Sept-20-2004 and Reeves Induction Log run 20-Aug-2004. i Tagged up at 10,569' MD (top of fishing neck of upper WRP at 10578.5' iMD). i Perforated 10,009-10,031' KB with 420 psi WHP. WHP increased to i 580 psi in 15 minutes. Flowed well on 18/64" choke while POOH with i gun. All shots fired and round. : RDMO Expro wireline. PWS well testers flowed well down to a fairly ! stable 450 psi FTP on a 18/64" choke at 880 MCFD rate. Well ! unloaded 1.7 bbls of 7.6 #/gal fluid (methanol is 6.8 #Igal). Opened ¡choke progessively until well started unloading fluid at 100 psi. ! Held PJSM with Pollard, PWS, and MOC personnel. '[ Spot Pollard Slickline equipment and rigged up to run tandem 'I pressure-temperature gauges. I RIH with tandem pressure gauges with well flowing at 760 Mcfd at 80 I psi FTP . Took static gradient surveys while POOH at 10330', 10240', i 10180',10160',10140',10060',10035',10000', 9500', 9000', 8000', 16000',4000', 2000', and at surface. Check data. Data is good. i RDMO Pollard Slickline. I Held PJSM with Expro, PWS, and MOC personnel to discuss operational plan and potential hazards. RU Expro perforating equipment. Armed 20' 3-3/8" carrier and take lubricator to tree. Pressure test lubricator with 1200 psi WHP. Printed: 2/28/2007 2:28:09 PM " <- Legal Well Name: Common Well Name: Event Name: Contractor Name: Rig Name: Date 11/30/2004 12/2/2004 12/3/2004 12/4/2004 e e Page 14 of 31 Marathon Oil Company Operations Summary Report SUSAN DIONNE 2 SUSAN DIONNE 2 ORIGINAL COMPLETION GLACIER DRILLLlNG GLACIER DRILLING Sub From - To Hours Code Code Phase 13:00 - 14:30 14:30 - 15:30 15:30 - 16:30 07:30 - 10:00 10:00 - 10:30 10:30 - 15:30 15:30 - 16:00 16:00 - 17:30 17:30 - 19:00 08:30 - 09:00 09:00 - 11 :30 11 :30 - 13:00 13:00 - 17:00 1.50 RUNPUL ELEC CMPPRF 1.00 PERF _ CSG_ CMPPRF 1.00 RURD ! ELEC 2.50 RURD -! SLlK -I 0.50 SAFETYi MTG 5.00 RUNPUU SLlK- ! ! 0.50 RURD_I SLlK ! 1.50 RUNPULlsLlK 1.50 RURD_lsLlK 0.50 SAFETY MTG_ 2.50 RURD_ ELEC i 1.50 RURD -I ELEC i 4.00 SETRELj PKR_ CMPPRF CMPPRF CMPPRF CMPPRF CMPPRF CMPPRF CMPPRF CMPPRF CMPPRF CMPPRF CMPPRF 17:00 - 17:30 0.50 SETRELi PKR_ CMPPRF , , 17:30 - 20:00 2.50 SETRELI PKR_ CMPPRF , 20:00 - 21 :00 09:00 - 09:30 09:30 - 10:30 1.00 RURD I ELEC CMPPRF -, 0.50 SAFETY! MTG_ CMPPRF 1.00 RURD _I ELEC CMPPRF Start: 9/17/2004 Rig Release: Rig Number: 1 Spud Date: 7/29/2002 End: Group: Description of Operations I RIH with 3.375" OD perforating gun loaded 20' with SDP-3125-311 NT3, ! 25 gm. charges, 6 SPF on CCL. Flowed well while RIH. Possible fluid Ievel at 3500' MD. Correlated depth with Expro GR-CCL log run i Sept-20-2004 and Reeves Induction Log run 20-Aug-2004. ! Perforated 9727-9747' KB with 1110 psi WHP. WHP increased to ~ ! 1150 psi in 10 minutes POOH with gun. Flowed well while POOH. All ! shots fired and round. i RDMO Expro wireline. ¡ Spot Pollard Slickline equipment and rigged up to run tandem ! pressure-temperature gauges. ¡Held PJSM with Pollard, PWS, and MOC personnel. i RIH with tandem pressure gauges with well flowing at 500 Mcfd at 440 'I' psi FTP.TookstaticgradientsurveyswhilePOOHat10330',10240', 10180', 10160', 10140', 10060', 10035', 10000',9750',9725',9500', ¡ 9000', 8000', 6000', 4000', 2000', and at surface. Check data. Data is I 'good. LD gauges and PU 3.75" OD gauge ring, 3.62" OD centralizer, roller ! stem, and tungsten weight bars. Shut well in to run gauge ring. I Roundtrip 3.75" OD gauge ring to 9800' MD with no trouble. i RDMO Pollard Slickline. Opened well back up to flow test. I Held PJSM with Expro, PWS, Weatherford, and MOC personnel. , Move in and spotted Expro Wireline equipment to run and set : Weatherford Eclipse straddle packer assembly across wet perforations, i 9727-9747' KB. Well flowing 250 Mscfd and 480 BWPD at 280 psi FTP. i High winds and wet snow hampering rig up. Shut well in to rig up I wireline BOP. ! Finished rigging up and took lubricator to the tree. Pressure tested to ! 900 psi with WHP. Had to rig up a methanol line to pump into the i lubricator to eliminate a hydrate plug in the tree. ¡ PU and RIH with Weatherford 3.74" OD Eclipse packer (3.35' overall I length, 3.0' center of element to top of packer, 2.375" ID), setting tool, I Baker #10 slow-set tool, and CCL on wireline. Correlated depth with i Expro GR-CCL log run Sept"20-2004 and Reeves Induction Log run ! 20-Aug-2004. Set middle of packing element at 9751.9' KB with top ! of packer at 9748.9' KB and bottom of packer at 9752.25' MD. PUH i and then RIH and tagged packer. POOH. 1 Redressed Baker #10 firing head. Added lubricator sections. MU top 1 packer straddle assembly. ! PU and RIH with Weatherford snap-latch seal assembly (0.83' long, '3.74" OD, 2.25" ID), 23.56' joint of 2-7/8" tubing (2.441" ID), ! Weatherford 3.74" OD Eclipse packer (3.50' overall length, 3.0' center : of element to top of packer, 2.375" ID), setting tool, Baker #10 slow-set tool, and CCL on wireline. Latched into bottom packer and pulled 650 ! Ibs over to verify latch. Set top straddle packer. POOH and LD setting !tools. 'Top of upper packer at 9721' KB. Middle of upper packer element at i 9724' KB. Minimum ID through straddle packer is 2.235" in snap latch ¡ seal assembly. i LD lubricator and setting tools. ND wireline BOP. Installed night cap Ion tree. Flow tested well overnight. i Held PJSM with Expro, PWS, and MOC personnel. I RU Expro perforating equipment. Armed 20' 3-3/8" carrier and take 'lubricator to tree. Pressure test lubricator with 1200 psi WHP. Printed: 2/28/2007 2:28:09 PM of '" Legal Well Name: Common Well Name: Event Name: Contractor Name: Rig Name: 12/4/2004 12/6/2004 Date From - To 10:30 - 11 :30 11 :30 - 14:00 14:00 - 15:00 15:00 - 16:00 08:00 - 08:30 08:30 - 09:30 09:30 - 1 0:30 10:30 -11:30 11:30 - 12:30 e e Page 15 of 31 Marathon Oil Company Operations Summary Report SUSAN DIONNE 2 SUSAN DIONNE 2 ORIGINAL COMPLETION GLACIER DRILLLlNG GLACIER DRILLING Hours j Code Sub I Phase Code ___.._______ ,___I 1.00:, RUNPUL ELEC CMPPRF 2.50 ELEC CMPPRF 1.00 PERF _ CSG - CMPPRF 1.00 RURD - ELEC CMPPRF 0.50 SAFETY MTG_ CMPPRF 1.00 RURD - ELEC CMPPRF 1.00 RUNPUL ELEC CMPPRF ¡ i i 1.00 PERF _iCSG_ CMPPRF I 1.00 RURO_I ELEC CMPPRF Start: 9/17/2004 Rig Release: Rig Number: 1 Spud Date: 7/29/2002 End: Group: Description of Operations ---~ RIH with 3.375" OD perforating gun loaded 20' with SOP-3125-311 NT3, ./ 25 gm. charges, 6 SPF on CCL. Choked well back to 750 FTP while RIH. Correlated depth with Expro GR-CCL log run Sept-20-2004 and Reeves Induction Log run 20-Aug-2004. Trobleshot Expro wireline computer. Problems obtaining proper grid for correlation. Perforated 7766-7786' KB with 720 psi WHP. WHP increased to 780 ./ psi in 15 minutes POOH with gun. Flowed well while POOH. All shots fired and round. ROMO Expro wireline. Left well on test. Held PJSM with Expro, PWS, and MOC personnel. RU Expro perforating equipment. Armed 41' 3-3/8" carrier and take 'lubricator to tree. Pressure test lubricator with 700 psi WHP. RIH with 3.375" OD perforating gun loaded 40' with SDP-3125-311 NT3, 25 gm. charges, 6 SPF on CCL. Choked well back to 750 FTP while I RIH. Correlated depth with Expro GR-CCL log run Sept-20-2004 and Reeves Induction Log run 20-Aug-2004. Perforated 7785-7826' KB with 720 psi WHP. WHP increased to 900 ./ psi in 15 minutes POOH with gun. Flowed wel1 while POOH. All shots : fired and round. . RDMO Expro wireline. Left well on test. Printed: 2/28/2007 2:28:09 PM Susan Dionne #2 (204-107) e . Ken, A review of this well file has revealed that a completion report, Form 407, has yet to be filed for this well. The well has been drilled and from the available record it appears that significant work has been accomplished since the rig was released (8/26/04). Work subsequent to rig release was authorized by Sundry Notices 304-351 (9/15/2004),304-378 (10/14/04) and 306-035 (2/1/06). On November 1, 2004 electronic log files and paper copies of drilling and completion reports and mud log reports were submitted from Houston. The drilling reports cover 7/27/04 - 8/26/04 when the rig was released. On February 6, 2006 you did submit a 404 that provided updated information on the wellbore status including daily summaries. It appears that the work authorized by the initial 2 sundries is reported as well as the final work done with the drilling rig. The operational periods covered are: 8/22 - 8/26/04 and 9/13 - 12/06/04. Although it appears that summaries of all work conducted in the well thru 12/60/4 is in the record, your attention is called to the actual sundry sheets where it is specifically noted that the initial 407 had not been submitted. In order to get the information regarding this well complete, the Completion Report (Form 407) should be submitted within 30 days. Since it appears that essentially continuous work was underway until 12/06/04, the 407 should reflect the well status on that date. Please note that, based on the file review, it is only necessary to submit the 2 page Form 407. If there has been work conducted as authorized by 306-035, that work should be reported via Form 404. It is probable that the Commission will use ~12/06/04 as the completion date and consider the well to have been shut-in since that time. Your early attention to these matters will be appreciated. It is recognized that Marathon has been conducting significant work to get the well into production, however the nearly 2-year delay in filing the completion report is not acceptable. Please call or message with any questions. Tom Maunder, PE AOGCC I of! 2/16/2007 1:12 PM · Alaska .t Team Marathon Oil Company P.O. Box 196168 Anchorage, AK 99519-6168 Telephone 907/561-5311 Fax 907/565-3076 June 27, 2006 JLH\j 2 7 Z005 '} t,,~ Cî)m!'r.ÎlI3iofi Mr. Robert Crandall Alaska Oil & Gas Conservation Commission 333 West 7th Avenue, Suite 100 Anchorage, AK 99501 Al1thì1r~Q~ Re: Submission ofNinilchik Unit Agreement and Susan Dionne Participating Area Susan Dionne #2 well and Susan Dionne #4 well Dear Bob: Pursuant to our recent conversation, I am submitting herewith copies of the Ninilchik Unit _ Agreement and Susan Dionne Participating Area. Please include these in the AOGCC files for Susan Dionne #2 well and Susan Dionne #4 well. Should you have questions or require additional information related to land or ownership issues please contact me at 907-565-3044. Technical questions related to geological or geophysical data should be directed to Dave Martens at 713-296-3302. Sincerely, ¡dff Keith Wiles Senior Land Professional Enclosures "-')0'· '--I' -10'1- 'Cl . . r - - - ;;;;.;;., - - -l- - - - 3~1l:~3W - - - T - - - ~2-IN~;- - - - i - - - 33-;-13W - - - -: I I I I I I I I I I I I I : TRACT#6 : : I I I ADL 389180 : : I I r-J-------,--l---- I ____,__J I 2-1S-14W I 1-lS-14W 6-1S-13W ~S-IS-I3W I I I ¡ ¡ RACT # 123 I TRACT # 10 /L-J I I ADL359242 L _CT #124 i I I TRACH 125 I I I <:- I ¡:..., I I C; I I I TRACT#8 ~ I , ADL 384372 ~ I I I TRACT #144 I I I ¡ - - -1~S:4; - - - -;2-IS-14W- - - - - - - - - - - - -S-IS-13W- - - -1 I I I ! I I I I I I I I I I I I I I I L_________~__________~__________L_________~ MARATIlON OIL COMPANY NINILCHll<. UNIT DIONNE PARTICIPATION AREA July 1, 2003 T1N, R 13W, S.M. Sec. 32: SE/4 & E/2SW/4 & SW/4SW/4 Sec. 33: W/2SW/4 T1S, R 14W, S.M. Sec. 1: NE/4NE/4 & S/2NE/4 & SE/4 & NE/4SW/4 & S/2SW/4 Sec. 12: N/2NE/4 & NE/4NW/4 T1S, R 13W, S.M. Sec. 5: All tide and submerged land Sec. 6: All tide and submerged land Sec. 7: All tide and submerged land lying within the Nl2NW/4 (56.72 acres) State Total: 1591.29 Schedule of Leases State: Alaska Ninilchik DESCRIPTION OF PROPERTY Unit Tract No. STATE OF ALASKA LANDS 6 8 10 NINILCHIK UNIT SUSAN DIONNE PARTICIPATION AREA EXHIBIT "C" JULY 1, 2003 Page 1 of 2 GROSS ACRES RECORDING DATA WI % BOOK PAGE DISTRICT TRACT PARTICIPATION FACTOR LESSORl ROYALTY OWNERS ROYALTY ORRIS LESSEE/ WI OWNER 360.00 20.4479231% State of Alaska ADl #389180 522.57 29.6818644% State of Alaska ADl #384372 708.72 40.2551446% State of Alaska ADl #359242 12.50% Marathon Oil Company 60% Union Oil Co. of California 40% 12.50% Marathon Oil Company 60% Union Oil Co. of California 40% . 12.50% James W. White 3.5% James L. Thurman 1/3 x 3% Tucson, ltd. 1/3 x 3% Metro National Bank and/or V. Paul Gavora 1/3 x 3% Marathon Oil Company 60% Union Oil Co. of California 40% COOK INLET REGION INC. (CIR!) TRACTS Ins, R 13W, S.M. 53.52 3.0399246% ¡COOk Inlet Region, Inc. 20.00% ¡Marathon Oil Company 160% I I 30 Sec 7: GlO lot 1 Union Oil Co. of California 40% CIRI Total: 53.52 . PATENTED FEE LANDS T1S, R 13W, S.M. 0.01 0.0005680% Richard L. Millett 50% 12.50% Marathon Oil Company 60% 311 541 Homer Sec. 5: That part of lot 6 of Sunset Bluffs Arthur T. Maze 50% Union Oil Co. of Calilornia 40% 321 654 123 Subdivision (Plat # H-79-5) that lies within the NE/4NW/4, a part of GlO lot 2 (estimated 0.01 acres) T1S, R 13W, S.M. 0.30 0.0170399% Richard L. Millett & Juanita J. Millett 12.50% Marathon Oil Company 60% 311 541 Homer Sec. 5: That part of lot 7 of Sunset Bluffs 100% Union Oil Co. of California 40% 124 Subdivision (Plat # H-79-5) that lies within the NE/4NW/4, a part of GlO lot 2 (estimated 0.01 acres) T1S, R 13W, S.M. 9.67 0.5492539% Richard L. Millett 50% 12.50% Marathon Oil Company 60% 311 541 Homer Sec. 5: That part of lots 8, 9 & 10 of Sunset ArthurT. Maze 50% Union Oil Co. of California 40% 321 654 125 Bluffs Subdivision (Plat # H-79-5) that lies within the NE/4NW/4, a part of GlO lot 2 (estimated 9.67 acres) Schedule of Leases State: Alaska Ninilchik DESCRIPTION OF PROPERTY U nit Tract No. PATENTED FEE LANDS (continued) T1S, R 13W, S.M. Sec. 5: That part of GLO Lot 3 lying within the 135 SW/4NW/4 (esümated 8.0 acres and all of GLO Lot 4 (38.2 acres) T1S, R 13W, S.M. Sec. 6: GLO Lot 1 144 T1S, R 13W, S.M. Sec. 6: GLO Lot 2 145 Fee Land Total: Total of all Tracts: RECAPITULATION BY LAND CATEGORIES: 1 2 3 State of Alaska Tracts Cook Inlet Region, Inc. Tracts Fee Tracts TOTAL: WORKING INTEREST RECAPITULATION 1 2 Marathon Oil Company Union Oil Company of Califomia GROSS TRACT ACRES PARTICIPATION FACTOR 46.20 10.06 49.52 115.76 1760.57 3 Tracts 1 Tract 6 Tratts LESSOR! ROYAL TV OWNERS 2.6241501% Wayne Findley & E. Irene Findley 100% NINILCHIK UNIT SUSAN DIONNE PARTICIPATION AREA EXHIBIT "C" JULY 1, 2003 ROYAL TV 16.67% 12.50% 16.67% ORRIS Intrepid Production Company 5.33333% 90.3849322% 3.0399246% 6.5751433% 100.0000000% 60.0000000% 40.0000000% 100.0000000% Note: Because several sections contained in this Participation Area are correction sections, this PA contains 1760.57 acres, rather than the expected 1800 acres. 0.5714059% Bea Bachner 100% 2.8127254 % Paul H. & Susan M. Dionne 100% 100.0000000% 1591.29 Acres 53.52 Acres 115.76 Acres 1760.57 Acres 1056.34 Acres 704.23 Acres 1760.57 Acres Page 2 of 2 LESSEE! WI OWNER RECORDING DATA WI % BOOK PAGE DISTRICT Marathon Oil Company 60% 247 322 Homer Union Oil Co. of California 40% . Marathon Oil Company 60% 250 399 Homer Union Oil Co. of California 40% Marathon Oil Company 60% 243 195 Homer Union Oil Co. of California 40% . · .) Amended NiniIchik Unit Agreement Effective July 1, 2003 NINILCHIK UNIT AGREEMENT Table of Contents RECITALS ..................................... ..... ................................. ......................... .... ........... ................................................ 1 AGREEMENT ..... ......................................................................................................................................................... 1 ARTICLE 1: DEFINITIONS............................................................... ............................ ............ ........ ........ ............ .... 1 ARTICLE 2: EXHIBITS ........................... ............................................................... ...... ................................. ............ 3 ARTICLE 3: CREATION AND EFFECT OF UNIT ..................................................................................................4 ARTICLE 4: DESIGNATION OF UNIT OPERATOR.............................................................................................. 5 ARTICLE 5: RESIGNATION OR REMOVAL OF UNIT OPERATOR ................................................................... 5 ARTICLE 6: SUCCESSOR UNIT OPERATOR ........................................................................................................ 6 ARTICLE 7: UNIT OPERATING AGREEMENT .....................................................................................................6 ARTICLE 8: PLANS OF EXPLORATION, DEVELOPMENT AND OPERATIONS.............................................. 7 ARTICLE 9: PARTICIPATING AREAS ......................... .......................................................................................... 8 ARTICLE 10: OFFSET WELLS ............................................................................................................................... 10 ARTICLE 11: ALLOCATION OF PRODUCTION ................................................................................................. 10 ARTICLE 12: LEASES, RENTALS AND ROYALTY PAYMENTS .....................................................................11 ARTICLE 13: UNIT EXPANSION AND CONTRACTION ................................................................................... 14 ARTICLE 14: UNIT EFFECTIVE DATE, TERM AND TERMINATION ............................................................. 15 ARTICLE 15: EFFECT OF CONTRACTION AND TERMINATION ................................................................... 15 ARTICLE 16: COUNTERPARTS. .............................................................................. .... ......................................... 16 ARTICLE 17: LAWS AND REGULATIONS .......................................................................................................... 16 ARTICLE 18: APPEARANCES AND NOTICES .................................................................................................... 16 ARTICLE 19: JOINDER........... ........... ........ ........ ....... .......... ....... ...... ...... .......... ..... .... ............................ ..... ............. 17 ARTICLE 20: DEFAULT.......... ................ ..... ........ ........ .................... ..... ........................... .................. ............ ........ 17 Amended Nini1chik Unit Agreement re :. NINILCHIK UNIT AGREEMENT RECITALS All record owners of any right, title, or interest in the oil or gas reservoirs or potential hydrocarbon accumulations to be included in this Unit have been invited to join this Agreement. The Commissioner of the Department of Natural Resources, State of Alaska, is authorized by Alaska Statute 38.05.l80(p) and (q) and applicable regulations to consent to and approve oil and gas unit agreements to explore, develop and produce state oil and gas resources. AGREEMENT In consideration of the mutual promises in this Agreement, the parties commit their respective interests in the Unit Area defined in Exhibit A and depicted in Exhibit B to this Agreement, and agree as follows: ARTICLE 1: DEFINITIONS 1.1 Alaska Oil and Gas Conservation Commission (AOGCC) means the independent quasi-judicial agency of the State of Alaska established by the Alaska Oil and Gas Conservation Act, AS 31.05. 1.2 Approved Unit Plan means a Unit Plan that has been approved by the Commissioner. 1.3 Commissioner means the Commissioner of the Department of Natural Resources, State of Alaska, or the Commissioner's authorized representative. 1.4 Effective Date means the time and date this Agreement becomes effective. 1.5 Lease or Leases means one or more oil and gas lease subject to this Agreement. 1.6 Oil and Gas Rights means the rights to explore, develop, and produce Unitized Substances. Amended Nini1chik Unit A.Qfeement n n- 1 . . 1.7 Outside Substances means oil, gas, and other hydrocarbons and non-hydrocarbon substances obtained from outside the Unit Area and injected into a Reservoir in the Unit Area. 1.8 Outside P A Substances means oil, gas, and other hydrocarbons and non- hydrocarbon substances obtained from one Participating Area in the Unit Area and injected into a Reservoir in a different Participating Area in the Unit Area. 1.9 Participating Area means all Unit Tracts and parts of Unit Tracts designated as a Participating Area under Article 9. 1.10 Participating Area Expense means all costs, expenses or indebtedness, which are incurred by the Unit Operator for production from or operations in a Participating Area and allocated to the Unit Tracts in that Participating Area. 1.11 Paying Quantities means a quantity of Unitized Substances sufficient to yield a return in excess of operating costs, even if drilling and equipment costs will never be repaid and the undertaking considered as a whole will ultimately result in a loss. The quantity is insufficient to yield a return in excess of operating costs unless it will produce sufficient revenue, not considering transportation and marketing, to induce a prudent operator to produce it. 1.12 Reservoir means that part of the Unit Area containing an accumulation of Unitized Substances which has been discovered by drilling and evaluated by testing a well or wells, and which is geologically separate from and not in hydrocarbon communication with any other oil and gas accumulation. 1.13 State means the State of Alaska acting m this Agreement through the Commissioner. 1.14 Sustained Unit Production means continuing production of Unitized Substances from a well in the Unit Area into production facilities and transportation to market. 1.15 Unit Area means the lands subject to this Agreement, described in Exhibit A and depicted in Exhibit B to this Agreement, submerged or not. 1.16 Unit Equipment means all personal property, Lease and well equipment, plants, platforms and other facilities and equipment used, taken over or otherwise acquired for use in Unit Operations. 1.17 Unit Expense means all costs, expenses or indebtedness incurred by the Unit Operator for Unit Operations, except for Participating Area Expense. 1.18 Unit Operating Agreement means the agreement(s) entered into by the Unit Operator and the Working Interest Owners, as described in Article 7. 1.19 Unit Operations means all operations conducted in accordance with an Approved Unit Plan or Approved Unit Plans. Amended Nini1chilr Unit A!Yfeempnt n r- '} e e 1.20 Unit Operator means the party designated by the Working Interest Owners and approved by the Commissioner to conduct Unit Operations. 1.21 Unit Plan means a unit plan of exploration or development as described in Article 8. 1.22 Unit Tract means each separate parcel that is described in Exhibit A and given a Unit Tract number. 1.23 Unit Tract Participation means the percentage allocation credited to a Unit Tract in a Participating Area to allocate Unitized Substances. 1.24 Unitized Substances means all oil, gas and associated substances, as those terms are defined in the Leases, within or produced from the Unit Area. 1.25 Working Interest means the right to explore for, develop or produce Unitized Substances, or cause Unitized Substances to be explored for, developed or produced. 1.26 Working Interest Owner means a party who owns a Working Interest. ARTICLE 2: EXHIBITS 2.1 The following Exhibits are to be attached to and made a part of this Agreement. When this Agreement is approved, only Exhibits A, B, and G are required. Exhibit F is also required when this Agreement is approved, if the Unit Area includes Net Profit Share Leases. The Unit Operator shall supply all Exhibits. 2.2 Exhibit A is a table that displays for each Unit Tract: the Unit Tract number, the Lease number, the Working Interest ownership, and the applicable royalty and net profit share rates. 2.3 Exhibit B is a map that shows the boundary lines of the Unit Area and of each Unit Tract, identified by Unit Tract number and Lease number. 2.4 Exhibit C is comprised of a table for each Participating Area established under this Agreement. The Exhibit C table for each Participating Area must display the Unit Tract numbers, legal descriptions, Lease numbers, Working Interest ownership, and Unit Tract Participation for that Participating Area. 2.5 Exhibit D is comprised of a map for each Participating Area. Each Exhibit D map must show the boundary lines of a Participating Area and the Unit Tracts in that Participating Area, identified by Unit Tract number and Lease number. Ampnrip.rl Niní]('hi1, T Tnit A OTP"'mpnt T> .., . . 2.6 Exhibit E is comprised of a table for each Participating Area that displays the allocation of Participating Area Expense to each Unit Tract in the Participating Area, identified by Unit Tract number and Lease number. 2.7 Exhibit F is a table that displays the allocation of Unit Expense to each Unit Tract in the Unit Area, identified by Unit Tract number and Lease number. 2.8 Exhibit G is the unit plan of exploration or unit plan of development required by the regulations, and this Agreement. ARTICLE 3: CREATION AND EFFECT OF UNIT 3.1 All Oil and Gas Rights in and to the lands described in Exhibit A and shown in Exhibit B are subject to this Agreement so that Unit Operations will be conducted as if the Unit Area was a single Lease. 3.2 in effect. So long as this unit remains in effect, each Lease in the Unit Area shall continue 3.3 Except as otherwise provided in this Agreement, where only a portion of a Lease is committed to this Agreement, that commitment constitutes a severance of the Lease as to the unitized and nonunitized portions of the Leased area. The portion of the Leased area not committed to this Agreement will be treated as a separate and distinct Lease having the same effective date and term as the Lease and may be maintained only in accordance with the terms and conditions of the Lease, statutes, and regulations. Any portion of the Leased area not committed to this Agreement will not be affected by the unitization, by operations in the Unit Area, or by a suspension approved or ordered by the Commissioner. If a Lease has a well certified as capable of production in paying quantities on it before commitment to this Agreement, the Lease will not be severed. If any portion of the Lease is included in a participating area formed under this Agreement, the entire Lease will remain committed to this Agreement and the Lease will not be severed. 3.4 Production of Unitized Substances in Paying Quantities from any part of a Participating Area shall be considered production from each Unit Tract in the Participating Area. It shall cause the portion of each Lease that is wholly or partially within the Participating Area to continue in effect as if a well were producing from each Unit Tract in the Participating Area. 3.5 The provisions of the various Leases and agreements pertaining to the respective Leases or production from those Leases are amended only to the extent necessary to make them conform to the written provisions of this Agreement. Otherwise, those Leases and agreements shaH remain in full force and effect. 3.6 This Agreement shall not be construed to transfer title to Oil and Gas Rights by any party to any other party or to the Unit Operator. Amended NiniIchik Unit Aoreement p...n-p A . . 3.7 Except as otherwise provided in this Agreement and subject to the terms and conditions of Approved Unit Plans, the exclusive rights and obligations of the Working Interest Owners to conduct operations to explore for, develop and produce Unitized Substances in the Unit Area are delegated to and shall be exercised by the Unit Operator. This delegation does not relieve a lessee of the obligation to comply with all Lease terms. The Unit Operator shall notify the other Working Interest Owners and the Commissioner of actions taken by the Unit Operator under this Agreement. The Unit Operator shall minimize and consolidate surface facilities to minimize surface impacts 3.8 All data and information determined by the Commissioner to be necessary for the administration of this Agreement or for the performance of statutory responsibilities shall be provided by the Unit Operator, or Working Interest Owners, or both upon written request. All data and information provided to the Commissioner shall be protected from disclosure pursuant to the Lease, governing law, and regulations. ARTICLE 4: DESIGNATION OF UNIT OPERATOR 4.1. Marathon Oil Company is designated as the Unit Operator. Marathon Oil Company agrees to accept the rights and obligations of the Unit Operator to conduct Unit Operations and to explore for, develop and produce Unitized Substances as provided in this Agreement. ARTICLE 5: RESIGNATION OR REMOVAL OF UNIT OPERATOR 5.1 The Unit Operator shall have the right to resign at any time. The Unit Operator's resignation shall not become effective until: 1) sixty days have passed since the Unit Operator delivers a written notice of an intention to resign to the Working Interest Owners and the Commissioner; and 2) all artificial islands, installations and other devices, including wells, used for operations in the Unit Area are in a condition satisfactory to the Commissioner for suspension or abandonment of operations. However, if a successor Unit Operator is designated and approved under Article 6, the resignation is effective when approved by the Commissioner. 5.2 The Unit Operator may be removed as provided in the Unit Operating Agreement. This removal shall not be effective until: 1) the Working Interest Owners notify the Commissioner and the Unit Operator; and 2) the Commissioner approves a successor Unit Operator. 5.3 The resignation or removal of the Unit Operator shall not release it from liability for any failure to meet obligations that accrued before the effective date of the resignation or removal. Amended Ninilchik Unit AIITeement. n -r- r' . . 5.4 The resignation or removal of the Unit Operator does not terminate its rights, title or interest or obligations as a Working Interest Owner or other interest in the Unit Area. A termination of the Unit Operator's rights, title or interest may occur independently under the terms of the Leases and governing law. When the resignation or removal of the Unit Operator becomes effective, the Unit Operator shall relinquish possession of all Unit Equipment, artificial islands, wells, installations, devices, records, and any other assets used for conducting Unit Operations, whether or not located in the Unit Area, to the successor Unit Operator. ARTICLE 6: SUCCESSOR UNIT OPERATOR 6.1. Whenever the Unit Operator tenders its resignation as Unit Operator or is removed as provided in Article 5, a successor Unit Operator may be designated as provided in the Unit Operating Agreement. The successor Unit Operator must accept the rights and obligations of a Unit Operator in writing. The successor Unit Operator shall file an executed copy of the designation of successor with the Commissioner. The designation of successor Unit Operator will not become effective until approved by the Commissioner. 6.2. If no successor Unit Operator is designated within sixty days after notice to the Commissioner of the resignation or removal of a Unit Operator, the Commissioner will, in his or her discretion, designate another Working Interest Owner as successor Unit Operator, or declare this Agreement terminated. ARTICLE 7: UNIT OPERATING AGREEMENT 7.1 The Working Interest Owners and the Unit Operator shall enter into a Unit Operating Agreement. It will apportion all costs and liabilities incurred in maintaining or conducting Unit Operations among the Working Interest Owners. The Unit Operating Agreement will also apportion the benefits, which will accrue from Unit Operations among the Working Interest Owners. 7.2 Any allocation described in the Unit Operating Agreement will not bind the State in determining or settling royalties and net profit share payments. Allocations of Unit Expense, Participating Area Expense, or Unitized Substances for determining, settling and paying royalties and net profit share payments will be based on Exhibits C, E and F of this Agreement, and must be approved by the Commissioner in writing before taking effect. An original or revised conforming Exhibit C and F shall be submitted to the Commissioner within thirty days of: any change in the division of interest or allocation formula establishing or revising the Unit Tract Participation of any Unit Tract or Unit Tracts in a Participating Area. 7.3 The Working Interest Owners and the Unit Operator may establish, through one or more Unit Operating Agreements and amendments, other rights and obligations between the Unit Operator and the Working Interest Owners. The Unit Operating Agreement will not modify any A mf>nnf>ri Ninih'hilr T Jnit A OTf>pmf>nt n -- . . term or obligation of this Agreement. If the terms of this Agreement and the Unit Operating Agreement conflict, this Agreement will prevail. 7.4 Any Working Interest Owner is entitled to drill a well on the unitized portion of its Lease when the Unit Operator declines to drill that well. A Working Interest Owner must have an approved permit to drill and the well must be part of an Approved Unit Plan. If the Commissioner determines any such well to be capable of producing Unitized Substances in Paying Quantities, the land upon which that well is situated will be included in a Participating Area. The Participating Area will be formed or an existing Participating Area enlarged as provided in this Agreement. The Unit Operator will thereafter operate the well in accordance with this Agreement and the Unit Operating Agreement. 7.5 The Unit Operator shall file a copy of the Unit Operating Agreement with the Commissioner when this Agreement is filed for approval. The copy of the Unit Operating Agreement is for informational purposes only. Approval of the Unit Agreement is not approval of the Unit Operating Agreement. Complete copies of all other Unit Operating Agreements and any amendments to them will also be filed with the Commissioner within thirty days of execution and at least thirty days before their effective dates. ARTICLE 8: PLANS OF EXPLORATION, DEVELOPMENT AND OPERATIONS 8.1. Any Unit Plan and any amendment to a Unit Plan will not be effective until the Commissioner approves it. Approved Unit Plans are incorporated into this Agreement and become effective on the date of their approval. 8.1.1. A unit plan of exploration ("Plan of Exploration") shall describe the proposed exploration and delineation activities for any land in the Unit Area that is not in a Participating Area. Plans of Exploration shall comply with 11 AAC 83.341 and any successor regulation. The Unit Operator shall submit updated Plans of Exploration to the Commissioner for approval at least sixty days before the current Plan of Exploration expires. 8.1.2. A unit plan of development ("Plan of Development") shall include a description of the proposed development activities based on data available when the plan is submitted. Plans of Development shall comply with 11 AAC 83.343 and any successor regulation. The Unit Operator shall submit updated Plans of Development to the Commissioner for approval at least ninety days before the current Plan of Development expires. 8.1.3. When this Agreement is submitted to the Commissioner for approval, an initial Plan of Development or an initial Plan of Exploration (collectively called the "Initial Unit Plan") shall be submitted for approval by the Commissioner. Amended Ninilchik Unit A!ITeement n "'1 . . 8.2. The Unit Operator shall not explore, develop or produce on the Unit Area except in accordance with an Approved Unit Plan. The Unit Operator shall obtain a plan of operations approval, and any other permits and approvals required before operations begin. A plan of operations approval must be consistent with the mitigation measures and lessee advisories developed for the most recent Lease within the Unit Area as deemed necessary by the Commissioner to protect the resources of the State. The Unit Operator shaH submit a complete copy of all such applications to the Commissioner. 8.3. After Sustained Unit Production in Paying Quantities begins, Unit Operations shall be maintained, with lapses of no more than ninety days per lapse between operations. The lapse may be longer if suspension of operations or production has been ordered or approved by the Commissioner. Approved Unit Plans may call for a suspension of Unit Operations. 8.4. After giving written notice to the Unit Operator and an opportunity to be heard, the Commissioner may require the Unit Operator to modify from time to time the rate of prospecting and development and the quantity and rate of production. 8.5. If a well has been drilled in the Unit Area prior to the Effective Date of this Unit Agreement or is being drilled within the Unit Area on the Effective Date, that well wiH be considered a Unit WeH as of the Effective Date of this Agreement. 8.6. The Commissioner will, in the agency's discretion, approve any injection of Outside Substances or Outside P A Substances within the Unit Area. Any injection of Outside Substances or Outside P A Substances within the Unit Area must be part of an Approved Unit Plan. ARTICLE 9: PARTICIPATING AREAS 9.1. The Unit Operator shall submit a request for approval of the proposed initial Participating Area to the Commissioner at least six months before Sustained Unit Production from a Reservoir in the Unit Area. A Participating Area shaH include only land that is reasonably known to be underlain by Unitized Substances and known or reasonably estimated through the use of geological, geophysical and engineering data to be capable of producing or contributing to production of Unitized Substances in Paying Quantities. The Unit Operator shaH notify the Commissioner when Sustained Unit Production begins from each Participating Area. 9.2. Each application for approval of a Participating Area shaH include Exhibits C, D, E and F. If approved by the Commissioner, the area described in Exhibit C and depicted in Exhibit D shaH be a Participating Area, and the aHocation of Participating Area Expenses and Unit Expenses described in Exhibits E and F shaH be effective on the effective date of the Participating Area. 9.3. A separate Participating Area shaH be established for each Reservoir in the Unit Area. If one Reservoir underlies another Reservoir in whole or in part, separate Participating Amended Nini1chit,. T Tnit A PTP"'mpr¡t n- r- 0 . . Areas may be created for each Reservoir. Any two or more Reservoirs or Participating Areas may be combined into one Participating Area if approved by the Commissioner. 9.4. At the Unit Operator's election or if so directed by the Commissioner, the Unit Operator shall apply to expand or contract the Participating Area if expansion or contraction is warranted by geological, geophysical, or engineering data. Each application for expansion or contraction shall include Exhibits C, D, E, and F. The application must be submitted to the Commissioner for approval. Before any directed expansion or contraction of the Participating Area, the Commissioner will give the Unit Operator reasonable notice and an opportunity to be heard. 9.5. The Commissioner will establish the effective date of the initial Participating Area. That effective date shall be no later than the date of the first Sustained Unit Production. The Commissioner will establish the effective date of each later Participating Area. 9.6. Land in a Participating Area shall remain in that Participating Area even if its Unitized Substances are depleted. 9.7. lfthe Working Interest Owners cannot agree on the fair, reasonable and equitable allocation of production or costs, the Commissioner shall prescribe an allocation. 9.8. A Unitized Substance produced from one Participating Area ("Originating Participating Area") may be used as an Outside P A Substance ("Injected Substance") for repressuring, recycling, storage or enhanced recovery purposes in another Participating Area ("Receiving Participating Area") only if the State is paid royalty as if the Unitized Substance was sold by the Working Interest Owners, except as follows: 9.8.1. If the Commissioner consents to the transfer of Unitized Substances between Participating Areas without immediate payment of royalties, the Unit Operator shall provide monthly reports to the State. These monthly reports shall reflect the volumes of any Unitized Substance transferred and the British thennal units ("Btus") in any natural gas Unitized Substance transferred as an Outside P A Substance during the preceding month. 9.8.2. If the Commissioner consents to the transfer of Unitized Substances between Participating Areas without immediate payment of royalties, the royalties shall be paid when the Injected Substances are produced and sold from the Receiving Participating Area. The first natural gas Unitized Substances produced and sold from the Receiving Participating Area shall be considered to be the Injected Substances until a volume of natural gas containing Btus equal to the Btus contained in the Injected Substances is produced and sold from the Receiving Participating Area. All the Unitized Substances produced and sold from a Receiving Participating Area that are considered to be the Injected Substance shall be allocated to the Originating Participating Area. The Working Interest Owners shall pay the State royalties on Injected Substances produced and sold from a Receiving Participating Area as if those Amended Ninilchik Unit Agreement n ,.. (\ . . Injected Substances were produced and sold from the Originating Participating Area when they were produced from the Receiving Participating Area. 9.9. All liquid hydrocarbons removed in any equipment or facility in Alaska from produced Injected Substances and not used for fuel shall be allocated to the Receiving Participating Area. If liquid hydrocarbons are removed from the natural gas, the Btu content of the natural gas shall be measured after liquid hydrocarbons are removed. 9.10. The Commissioner must approve the deemed recovery rate and commencement date for recovery before any Outside Substance is injected within the Unit Area. 9.11. After giving written notice to the Unit Operator and an opportunity to be heard, the Commissioner will, in his or her discretion, require the Unit Operator to modify from time to time the rate of prospecting and development and the quantity and rate of production from a Participating Area. ARTICLE 10: OFFSET WELLS 10.1. The Unit Operator shall drill such wells as a reasonable and prudent operator would drill to protect the State from loss by reason of drainage resulting from production on other land. Without limiting the generality of the foregoing sentence, if oil or gas is produced in a well on other land not owned by the State or on which the State receives a lower rate of royalty than under any Lease in the Unit Area, and that well is within 500 feet in the case of an oil well or 1,500 feet in the case of a gas well of lands then subject to this Agreement, and that well produces oil or gas for a period of 30 consecutive days in quantities that would appear to a reasonable and prudent operator to be sufficient to recover ordinary costs of drilling, completing, and producing an additional well in the same geological structure at an offset location with a reasonable profit to the operator, and if, after notice to the Unit Operator and an opportunity to be heard, the Commissioner finds that production from that well is draining lands then subject to this Agreement, the Unit Operator shall within 30 days after written demand by the Commissioner begin in good faith and diligently prosecute drilling operations for an offset well on the Unit Area. In lieu of drilling any well required by this paragraph, the Working Interest Owners may, with the Commissioner's consent, compensate the State in full each month for the estimated loss of royalty through drainage in the amount determined by the Commissioner. ARTICLE 11: ALLOCATION OF PRODUCTION 11.1 Production and costs will be allocated according to 11 AAC 83.371 and any successor regulation. The Unit Operator shall submit a proposed allocation plan, with supporting data, to the Commissioner for approval. The Commissioner will, in his or her discretion, revise the proposed allocation plan if it does not equitably allocate production and costs from the Reservoir. The Commissioner will give the Working Interest Owners reasonable notice and an Amended Ninilchik Unit Agreement n rr to . . opportunity to be heard before revising the Unit Operator's proposal. The allocation plan must be revised whenever a Participating Area is expanded or contracted. Within thirty days after approval by the Commissioner of any division of interest or allocation formula establishing or revising the Unit Tract Participation of any Unit Tract or Unit Tracts in a Participating Area, the Unit Operator shall submit revised Exhibits C and F to the Commissioner. The Unit Operator may submit a revised Exhibit F anytime, but any revisions to Exhibit F are not effective until approved by the Commissioner. 11.2 The Working Interest Owners shall pay royalties for each Unit Tract in proportion to each Working Interest Owner's ownership in that Unit Tract. The amount of Unitized Substances allocated to each Unit Tract shall be deemed to have been produced from that Unit Tract. 11.3 The Working Interest Owners may allocate Unitized Substances, Participating Area Expense, and Unit Expense differently than described in Exhibits C, E and F. However, that allocation shall not be effective for determining royalty or net profit share payments. The Unit Operator shall submit any allocation which is different than the allocations required in Exhibit C, E or F to the Commissioner under 11 AAC 83.371(b) for the State's information within ten days of its effective date with a statement explaining the reason for the different allocation. 11.4 Royalties shall not be due or payable to the State for the portion of Unitized Substances unavoidably lost or used in the Unit Area for development and production in accordance with prudent industry practices. Gas that is flared for any reason other than safety purposes as allowed by the AOGCC shall not be deemed to be unavoidably lost, and the Working Interest Owners shall pay royalties for such flared gas as if it had been produced. This exemption does not apply to Unitized Substances that are sold, traded or assigned, including sales, transactions, or assignments among the Working Interest Owners. 11.5 If a State Lease committed to this Agreement provides for a discovery royalty rate reduction for the first discovery of oil or gas, that Lease provision shall not apply to a well spudded after the Effective Date. ARTICLE 12: LEASES, RENTALS AND ROYALTY PAYMENTS 12.1. The Working Interest Owners shall pay rentals and royalty payments due under the Leases. Those payments must be made to any depository designated by the State with at least sixty days notice to the Unit Operator and the Working Interest Owners. 12.2. Each month, the Unit Operator shall furnish a schedule to the Commissioner. That schedule shall specify, for the previous month: 1) the total amount of Unitized Substances produced; 2) the amount of Unitized Substances used for development and production or unavoidably lost; 3) the total amount of Unitized Substances allocated to each Unit Tract; 4) the amount of Unitized Substances allocated to each Unit Tract and delivered in kind as royalty to Amended Ninilchik Unit AIITeement neT 11 . . the State; and 5) the amount of Unitized Substances allocated to each Unit Tract for which royalty is to be or has been paid to the State. 12.3. Each Working Interest Owner shall pay its share of royalties to the State on Unitized Substances as provided in the Lease, except "leased area" shall mean Unit Area, and "oil, gas, or associated substances" shall mean Unitized Substances. 12.4. Notwithstanding any contrary Lease term, royalties and the share of Unitized Substances attributable to royalties and any payment due must be paid free and clear of all Lease expenses, Unit Expenses and Participating Area Expenses. These excluded expenses include, but are not limited to, separating, cleaning, dehydration, saltwater removal, processing, and manufacturing costs. These excluded expenses also include the costs of preparing the Unitized Substances for transportation off the Unit Area and gathering and transportation costs incurred before the Unitized Substances are delivered to a common carrier pipeline. No lien for any of the excluded expenses shall attach to royalty Unitized Substances. The royalty share shall bear a proportionate part of any gas shrinkage that occurs during gas processing and blending. 12.4.1 Notwithstanding any contrary Lease term or provision in 11 AAC 83.228-11 AAC 83.229, all royalty deductions for transportation, including marine and pipeline transportation, from the Unit Area to the point of sale are limited to the actual and reasonable costs incurred by the Working Interest Owners. These transportation costs must be determined by taking into account all tax benefits applicable to the transportation 12.5. The Unit Operator shall give the Commissioner notice of the anticipated date for commencement of production at least six months before the commencement of Sustained Unit Production from a Participating Area. Within ninety days of receipt of that notice, the Commissioner will give the Working Interest Owners written notice of its elections to take in kind all, none, a specified percentage, or a specified quantity of its royalties in any Unitized Substances produced from the Participating Area. The Commissioner will, in his or her discretion, increase or decrease (including ceasing to take royalty Unitized Substances in kind) the amount of royalty Unitized Substances the State takes in kind. The Commissioner shall give written notice to the Working Interest Owners ninety days before the first day of the month in which an increase or decrease is to be effective. 12.5.1. The Commissioner will, in his or her discretion, elect to specify the Unit Tracts from which royalty Unitized Substances taken in kind are to be allocated. 12.5.2. The Unit Operator shall deliver the State's royalty Unitized Substances at the custody transfer meter at a common carrier pipeline capable of carrying those substances, or at any other place mutually agreeable place. The State will, in its discretion, designate any individual, firm or corporation to accept delivery. 12.5.3. Royalty Unitized Substances delivered in kind shall be delivered in good and merchantable condition and be of pipeline quality. If a Working Interest Owner processes the Unitized Substances to separate, extract or remove liquids from a Amended Ninilchilr Unit Aurp.pmpnt 1).(1" 1" · '. Working Interest Owner's share of natural gas Unitized Substances, the State will, in its discretion, require that a Working Interest Owner also process the State's share of natural gas being taken in kind in the same manner without cost to the State. Under these circumstances, the State, or its buyer, shall only pay any tariffed transportation costs and shrinkage of the volume of gas resulting from processing. 12.5.4. Each Working Interest Owner shall furnish storage in or near the Unit Area for the State's share of Unitized Substances to the same extent that the Working Interest Owner provides storage for its own share of Unitized Substances. 12.6. If a purchaser of the State's royalty Unitized Substances does not take delivery of Unitized Substances, the State will, in its discretion elect, without penalty, to underlift for up to six months. The State will, in its discretion, underlift all or a portion of those substances. The State's right to underlift is limited to the portion of those substances that the purchaser did not take delivery of or what is necessary to meet an emergency condition. The State shall give the Unit Operator written notice thirty days before the first day of the month in which the underlifted royalty Unitized Substances are to be recovered. The State will, in its discretion, recover at a daily rate not exceeding 25 percent (25%) of its share of daily production, unless otherwise agreed. 12.7. The Unit Operator shall keep and have in its possession books and records showing the exploration, development, production and disposition of all Unitized Substances produced from the Unit Area. The Unit Operator shall permit the State or its agents to examine these books and records at all reasonable times. Upon request by the State, the Unit Operator's books and records shall be made available to the State at the State office designated by the State. These books and records of exploration, development, production, and disposition must employ methods and techniques that will ensure the most accurate figures reasonably available. The Unit Operator shall use generally accepted accounting procedures consistently applied. 12.8. If a Lease committed to this Agreement specifies the amount of rent due, that Lease is amended to requ~re that rentals due be calculated under A.S. 38.05. 180(n), as amended. If a Lease committed to this Agreement requires payment of minimum royalty, that Lease is amended to delete that miþimum royalty obligation. The rental due under State law, as amended, must be paid in lieu of mipimum royalty. I 12.9. All rights and obligations relating to the State's net profit share will be determined in accordance with 11 MC 83.201 - 11 MC 83.295, as amended, notwithstanding any contrary Lease term. The State will, in its discretion, audit the net profit share reports or payments due for any Lease within ten years of the date of production. The period of limitations for the State to file a lawsuit relating to an audit of a net profit share report or payment shall be three years longer than the audit period. The Working Interest Owners holding interests in net profit share Leases shall maintain the records relevant to determination of net profit share until the audit period has expired. A mpnnpri Nini1...hil- T Jnit A QTppmpnt n rr 1 '") . . ARTICLE 13: UNIT EXPANSION AND CONTRACTION 13.1. The Unit Operator, at its own election may, or at the direction of the Commissioner shall, apply to expand the Unit Area to include any additional lands determined to overlie a Reservoir that is at least partially within the Unit Area, or to include any additional lands that facilitate production. The Unit Operator shall notify the Working Interest Owners of the proposed expansion. Any unit expansion shall not be effective until approved by the Commissioner. 13.2. Ten years after Sustained Unit Production begins, the Unit Area must be contracted to include only those lands then included in an approved Participating Area and lands that facilitate production including the immediately adjacent lands necessary for secondary or tertiary recovery, pressure maintenance, reinjection, or cycling operations. The Commissioner will, in the Commissioner's discretion, after considering the provisions of 11 AAC 83.303, delay contraction of the Unit Area if the circumstances of a particular unit warrant. If any portion of a Lease is included in the Participating Area, the portion of the Lease outside the Participating Area will neither be severed nor will it continue to be subject to the terms and conditions of the unit. The portion of the Lease outside the Participating Area will continue in full force and effect so long as production is allocated to the unitized portion of the Lease and the lessee satisfies the remaining terms and conditions of the Lease. 13.3. Not sooner than 10 years after the effective date of this Agreement, the Commissioner will, in the Commissioner's discretion, contract the Unit Area to include only that land covered by an approved unit plan of exploration or development, or that area underlain by one or more oil or gas reservoirs or one or more potential hydrocarbon accumulations and lands that facilitate production. Before any contraction of the Unit Area under this Section, the Commissioner will give the Unit Operator, the Working Interest Owners, and the royalty owners of the Leases or portions of Leases being excluded reasonable notice and an opportunity to be heard. 13.4. The Commissioner will give the Unit Operator and the Working Interest Owners of the affected Leases reasonable notice and an opportunity to be heard before any directed contraction or expansion of the Unit Area. 13.5. The Unit Area may be contracted with the Commissioner's approval and an affirmative vote of the Working Interest Owners. 13.6. Within thirty days after approval by the Commissioner of any expansion or contraction of the Unit Area, the Unit Operator shall submit revised Exhibits A and B to the Commissioner. A mpnnpti Ninilrhi1r TTnit A OJ"f''''mf'nt n... 1 J . . ARTICLE 14: UNIT EFFECTIVE DATE, TERM AND TERMINATION 14.1. This Agreement is effective as of 12:01 a.m. on the day after the Commissioner approves it. At least one copy of this Agreement shall be filed with the Department of Natural Resources, Anchorage, Alaska and one copy shall be filed with the AOGCC. This Agreement is binding upon each party who signs any counterpart. 14.2. Subject to the terms and conditions of the Approved Unit Plan, this Agreement terminates five years from the Effective Date unless: 14.2.1. A unit well in the Unit Area has been certified as capable of producing Unitized Substances in Paying Quantities; or 14.2.2. The unit term is extended with the approval of the Commissioner. An extension shall not exceed five years. 14.3. If the Commissioner orders or approves a suspension of production or other Unit Operations, this Agreement shall continue in force during the authorized suspension. 14.4. Nothing in this Article holds in abeyance the obligations to pay rentals, royalties, or other production or profit-based payments to the State from operations or production in any part of the Unit Area. Any seasonal restriction on operations or production or other condition required in the Lease is not a suspension of operations or production required by law or Force Majeure. 14.5. This Agreement may be terminated by an affirmative vote of the Working futerest Owners and the Commissioner's approval. ARTICLE 15: EFFECT OF CONTRACTION AND TERMINATION 15.1. If a Lease or portion of a Lease is contracted out of the Unit Area under this Agreement, then it will be maintained only in accordance with State law and the Lease. 15.2. Each Lease committed to this Agreement on the day that this Agreement terminates shall remain in force for an extension period of ninety days, or any longer period which may be approved by the Commissioner. After the extension period expires, the Lease will be maintained only in accordance with State law and the Lease. 15.3. Upon the expiration or earlier termination of the unit, the Unit Operator will be directed in writing by the Commissioner and will have the right at any time within a period of one year after the termination, or any extension of that period as may be granted by the Commissioner, to remove from the Unit Area all machinery, equipment, tools, and materials. Upon the expiration of that period or extension of that period and at the option of the Amended Ninilchik 1 Jnit A PTPpmpl1t P"CT ] 'i . . Commissioner, any machinery, equipment, tools, and materials that the Unit Operator has not removed from the Unit Area become the property of the State or may be removed by the State at the Working Interest Owners' expense. At the option of the State, all improvements such as roads, pads, and wells must either be abandoned and the sites rehabilitated by the Unit Operator to the satisfaction of the State, or be left intact and the Unit Operator absolved of all further responsibility as to their maintenance, repair, and eventual abandonment and rehabilitation. Subject to the above conditions, the Unit Operator shall deliver up the Unit Area in good condition. ARTICLE 16: COUNTERPARTS 16.1. The signing of counterparts of this Agreement shall have the same effect as if all parties had signed a single original of this Agreement. Within thirty days after approval by the Commissioner of any change of the Working Interest ownership of Oil and Gas Rights in any Unit Tract, the Unit Operator shall submit a revised Exhibits A and C to the Commissioner. ARTICLE 17: LAWS AND REGULATIONS 17.1. This Agreement is subject to all applicable State and federal statutes and regulations in effect of the Effective Date of this Agreement, and insofar as is constitutionally pennissible, to all statues and regulations placed in effect after the Effective Date of this Agreement. A reference to a statute or regulation in this Agreement includes any change in that statute or regulation whether by amendment, repeal and replacement, or other means. This Agreement does not limit the power of the State of Alaska or the United States of America to enact and enforce legislation or to promulgate and enforce regulations affecting, directly or indirectly, the activities of the parties to this Agreement or the value of interests held under this Agreement. In case of conflicting provisions, statutes and regulations take precedence over this Agreement. ARTICLE 18: APPEARANCES AND NOTICES 18.1. If the State gives the Unit Operator a notice or order relating to this Agreement it shall be deemed given to all Working Interest Owners and all persons whose interest in the Unit Area derived from a Working Interest. All notices required by this Agreement shall be given in writing and delivered personally, or by United States mail or by facsimile machine to the Unit Operator at the address or facsimile number listed below. All notices actually received will also be deemed properly given. The Unit Operator will change its notice address by giving thirty days written notice to the State and the other Working Interest Owners. The State will change its notice address by giving thirty days written notice to the Unit Operator. Amended Ninilchik Unit APTeeme:nt pn(1" . 1h . . Address of the Unit Operator: Fax: Address of the State: Commissioner, Department of Natural Resources 550 West Seventh Avenue, Suite 1400 Anchorage, Alaska 99501-3554 Fax: (907) 269-8918 with a copy to: Director, Division of Oil and Gas 550 West Seventh Avenue, Suite 800 Anchorage, Alaska 99501-3560 Fax: (907) 269-8938 ARTICLE 19: JOINDER 19.1. The Commissioner will, in his or her discretion, order or, upon request, approve a joinder to this Agreement under the expansion provisions of Article 12. The Unit Operator shall submit a request for joinder with a signed counterpart of this Agreement and a notice of proposed expansion under Article 12. A joinder is subject to the requirements of the Unit Operating Agreement. However, the Commissioner will, in his or her discretion, modify any provision in a Unit Operating Agreement, which the Commissioner finds discriminates against parties who request joinder. The Commissioner shall give notice and an opportunity to be heard to the Unit Operator before modifying the Unit Operating Agreement. ARTICLE 20: DEFAULT 20.1 The Commissioner will, in his or her discretion, determine that failure of the Unit Operator or the Working Interest Owners to comply with any of the terms of this Agreement, including any Approved Unit Plan, is a default under this Agreement. The failure to comply because of Force Majeure is not a default. Amended Ninilchi1,. T Jnit A OT~f'mF'nt P"'IT 17 . . 20.2 The Commissioner will give notice to the Unit Operator and the Working Interest Owners of the default. The notice will describe the default, and include a demand to cure the default by a certain date. The cure period shall be at least thirty days for a failure to pay rentals or royalties and ninety days for any other default. 20.3 ¡fthere is no well certified as capable of producing Unitized Substances in Paying Quantities and a default is not cured by the date indicated in the demand, the Commissioner will, in his or her discretion, tenninate this Agreement after giving the Unit Operator notice and an opportunity to be heard. The Commissioner will give notice, by mail, of the tennination, which is effective upon mailing the notice. 20.4 If there is a well capable of producing Unitized Substances in Paying Quantities and the operations to cure the default are not completed by the date indicated in the demand, the Commissioner will tenninate this Agreement by judicial proceedings. 20.5 This Article's remedies are in addition to any other administrative or judicial remedy provided for by Lease, this Agreement, or federal or State law. IN WITNESS OF THE FOREGOING, the parties have executed this Unit Agreement on the dates opposite their respective signatures. WORKING INTEREST OWNERS By: COMPANY Date: August 8. 2003 STATE OF ALASKA ) )ss. ) THIRD JUDICIAL DISTRICT This certifies that on August 8, 2003, before me, a notary public in and for the State of Alaska, duly commissioned and sworn, personally appeared J. Brock Riddle, Attorney-In-Fact for Marathon Oil Company, known to me to be the person described in, and who executed the foregoing agreement, who then after being duly sworn according to law, acknowledged to me under oath that he executed same freely and voluntarily for the uses and purposes therein mentioned. WITNESS my hand and official seal the day and year in this certificate first above written. ~\\\\\UIIUf,q. ~...." . \...1. <: ~ ~ ~~\;..........~+. ~ ~ ~...,. .....~~ ~.J<'.. . .... _ _ _ .. ~ ~ :NO'''rrAn'Y~ ~ == : ' ':. r I.~ : !\: - . . - ~. t.f. \ PUBLIC} .~ ~:'T" . .§ :~ cf';'" ....~§f .~ 4;þ··...···~·'t-s ~ ~ ç OF þ\... ~ . 7111'''11/'' \\\\\\\\~ NOtiv ~1ti&L CJJ};;:- My Commission Expires: 10 - 9,. oS A mf>nòpr{ Ninilrhi1r TTnit A OTPpmpnt n 1 n '. . IN WITNESS OF THE FOREGOING, the parties have executed this Unit Agreettlent on the da.tes opposite their respective signatures. WORKING INTEREST OWNERS UNION OIL COMPANY OF CALIFORNIA MJJ2 ð~ vin A. Tabler Attorney in Fact Date: 'il....1J-~oo~ By: STATE OF ALASKA ) )55. THIRD JUDICIAL DISTlUCT ) This certifies that on August 8, 2003, before me, a notary public in and for the State of Alaska. duJy commissioned and sworn, personally appeared Kevin A. Tabler, Attorney in Pact for Union on Company of CaUforina known to me to be the person described in, and who executed the foregoing agreement, who then after being duly sworn according to law, acknowledged to me under oath that he executed same freely and voluntarily for the uses and purposes therein mentioned. WITNESS my hand and official seal the day and Yeai' in tlüs certificate first above written. ~~\\\"'IIJlIIIIQ¡~ 'Q~f~~""!~~ ~~.:j .'"r,p". I/v,j~~~ 11 ":):'#- .,\..,. ~ == : NlVr-t 'bV~ iæ ã \ PUBu~C·X j - M- \ "'-'J,' l tJS~. ~ ..... ~. ~~.. c.1.,,""'~ ~~c- öF"~,-~~ WIIIII""1 ~~;t-J a ß.~ L NÔTARY-PUBLÏC in ~cf for Alaska My Commission Expires: e:J-1 </ - _0 þ ~ Amended Ninilchik Unit Agreement Page 19 r n ',1 Qç:¡n ('0:7 nt"l 'nu V" r flU"1 l' "'I'" In "r nf'. TnT" r ('nn"" n" nil" An1cndco Nil1ilchik Unit Agrccn1cI1t 'f;1 ~t'. 7.0 . . TABLE OF CONTENTS I. IN"TRODUCTION AND BACKGROUND .............................................................................. 1 n. APPLICATION FOR THE FORMATION OF THE NIN"ILCHIK UNIT ................................ 2 ill. DISCUSSION OF DECISION CRITERIA...............................................................................3 A. Decision Criteria considered under 11 AAC 83.303(b) ...................................................... 3 1. The Environmental Costs and Benefits of Unitized Exploration or Development ......... 3 2. The Geological and Engineering Characteristics of the Reservoir, Prior Exploration Activities in the Unit Area, and Plans for Exploration and Development of the Proposed Unit Area............................................................................................................................. 4 3. The Economic Costs and Benefits to the State and Other Relevant Factors ..................7 B. Decision Criteria considered under 11 AAC 83.303(a) ...................................................... 8 1. The Conservation of All Natural Resources.................................................................... 8 2. The Prevention of Economic and Physical Waste........................................................... 9 3. The Protection of All Parties in Interest, Including the State.......................................... 9 IV. FIN"DIN"GS AND DECISION .................................................................. ............................... 10 A. The Conservation of All Natural Resources...................................................................... 10 B. The Prevention of Economic and Physical Waste............................................................. 10 C. The Protection of All Parties in Interest, Including the State. ........................................... 11 . . I. INTRODUCTION AND BACKGROUND On June 29, 2001, Marathon Oil Company (Marathon), as the designated Ninilchik unit operator, filed the Ninilchik Unit application (Application) with the State of Alaska, Department of Natural Resources (DNR) , on behalf of itself and the other majority working interest owner, Union Oil Company of California (Unocal). The proposed unit is located on the Kenai Peninsula, both onshore and offshore between Clam Gulch and Ninilchik. The proposed unit area covers approximately 25,167 acres of which approximately 18,999 acres are State of Alaska lands within ten individual State of Alaska oil and gas leases, and approximately 420 acres are unleased State of Alaska lands. Of the remaining approximate 5,748 acres proposed for the Ninilchik Unit, federal lands encompass 222.67 acres or 0.8857% of the unit area, University of Alaska lands encompass 661.35 acres or 2.63% of the unit area, Cook Inlet Region, Inc. lands encompass 1528.17 acres or 6.078% of the unit area, and patented fee lands encompass 3336.34 acres or 13.27% of the unit area. Approval of the proposed Ninilchik Unit Agreement (Agreement) would conform and modify the lease contracts to be consistent with the Agreement, and extend the term of leases for as long as they are subject to the Agreement. A summary of the State of Alaska leases proposed for the Ninilchik Unit follows. Five of the leases in the proposed unit area were offered in State of Alaska Lease Sale 78, held on October 31, 1994. DNR issued oil and gas leases ADL 384305 (NU Tract 4), ADL 384306 (NU Tract 5), ADL 384314 (NU Tract 2), ADL 384318 (NU Tract 1), and ADL 384372 (NU Tract 8), effective January 1, 1995, on State of Alaska lease form number DOG 9208. The seven-year primary lease term of these leases expires on December 31, 2001. Two leases in the proposed unit area were offered in the Cook Inlet Areawide 1999 Oil and Gas Lease Sale, held on April 21, 1999. DNR issued oil and gas leases ADL 389180 (NU Tract 6) and ADL 389181 (NU Tract 187), effective February 1, 2000, on State of Alaska lease form number DOG 9609 (rev. 9/99). The seven-year primary lease term of these leases expires on January 31, 2007. One lease in the proposed unit area was offered in State of Alaska Lease Sale 1, held on December 10, 1959. DNR issued ADL 590, effective January 27, 1960, on State of Alaska lease form DL-1. The Falls Creek Unit #1 Well, a certified well capable of production in paying quantities, is located on ADL 590. A portion of this lease, 564.45 acres of the total 3,660 acres, is currently within the Falls Creek Unit. Another lease in the proposed unit area was offered in the State of Alaska Lease Sale 40, held on September 28, 1983. DNR issued oil and gas lease ADL 359242 (NU Tract 10), effective December 1, 1983, on State of Alaska lease form number DMEM-27-83 (royalty revised 7/83). As a result of a litigation settlement agreement, the prim3-ry lease term was extended until December 1, 2001. The remaining lease in the proposed unit area was offered in State of Alaska Lease Sale 85A, held on December 18, 1996. DNR issued ADL 388226 (NU Tract 11), effective February 1, Page 1 . . 1997, on State of Alaska lease form DOG 9609. The seven-year primary lease term expires on January 31, 2004. All ten leases retain a 12.5 percent royalty to the State of Alaska. II. APPLICATION FOR THE FORMATION OF THE NINILCIDK UNIT Marathon submitted the Application on June 29, 2001, and simultaneously paid the $5,000.00 unit application filing fee, in accordance with 11 AAC 83.306 and 11 AAC 05.01O(a)(10)(D), respectively. The Application includes: the Agreement; Exhibit A legally describing the proposed unit area, its leases, and ownership interests; Exhibit B, a map of the proposed unit; and Exhibit G, the proposed Plan of Exploration (Initial POE). The Application also includes the Ninilchik Unit Operating Agreement; technical data in support of the Application; and an affidavit that all proper parties were invited to join the Agreement. The Agreement is based on DNR's State Only Royalty Owner model unit form dated April 2001(Model Form) with no modifications. Marathon requested that only portions of six of the ten State of Alaska leases be committed to the Ninilchik Unit. The six leases are ADLs 590, 359242, 384305, 384306, 384318, and 389180. Under 11 AAC 83.373, these commitments constitute severance of five of these six leases. For ADL 590, Marathon proposed to retain a portion, 564.45 acres, of the lease in the Falls Creek Unit and commit the remainder of the lease, 3,045.55 acres, to the Ninilchik Unit. Marathon proposed that the severance of the five leases, and apportionment of ADL 590, become effective contemporaneously with the approval of the Ninilchik Unit. The Agreement requires the unit operator, Marathon, to file unit plans describing the activities planned for the proposed unit area. The Marathon must consider how it can best develop the resource underlying the entire unit area, without regard to internal lease boundaries. Marathon filed a proposed three-year Initial POE. The Initial POE is discussed further in Section m. A. 2. The Agreement defines the relationship between the unit operator, the working interest owners (WIOs), and the royalty owners. It describes the rights and responsibilities, in addition to those imposed by state law and the leases, of the unit operator, WIOs and royalty owners for exploration of the unit area. It protects the interests of the state and the lessees. It defines the parties' rights and responsibilities in the event of successful or unsuccessful exploration results. DNR may approve the Agreement if the available data suggests that the unit area covers one or more geologic formations that should be developed under a DNR approved plan, and the proposed unit meets the other statutory and regulatory criteria. The Division of Oil and Gas (Division) determined that the Application was complete and published a public notice in the "Anchorage Daily News" on Sunday, July 22, 2001, and in the "Peninsula Clarion" on Tuesday, September 25, 2001, under 11 AAC 83.311. The Division provided copies of the public notice to the Kenai Peninsula Borough, City of Kenai, Ninilchik Native Assn., Salamatoff Native Assn., Cook Inlet Region Corporation, and other interested parties under 11 AAC 83.311. The Division also provided public notice to the Alaska Page 2 . . Department of Environmental Conservation (DEC) , Alaska Department of Fish and Game (ADF&G), and the Alaska Oil and Gas Conservation Commission (AOGCC). The public notice invited interested parties and members of the public to submit comments by August 21, 2001, and then by October 25, 2001. The Division received no comments in response to the public notice. III. DISCUSSION OF DECISION CRITERIA AS 38.05.180(p) gives DNR the authority to form an oil and gas unit. The Commissioner of DNR (Commissioner) reviews unit applications under AS 38.05 . 180(p ) and 11 AAC 83.301 - 11 AAC 83.395. By memorandum dated September 30, 1999, the Commissioner approved a revision of Department Order 003 that delegated this authority to the Director of the Division (Director). The Director will approve the Agreement upon a written finding that it will: 1) promote the conservation of all natural resources; 2) promote the prevention of economic and physical waste; and 3) provide for the protection of all parties of interest, including the state. 11 AAC 83.303(a). The Director will consider the following six criteria in making the written finding required in subsection (a): 1) the environmental costs and benefits of unitized exploration or development; 2) the geological and engineering characteristics of the potential hydrocarbon accumulation or reservoir proposed for unitization; 3) prior exploration activities in the proposed unit area; 4) the applicant's plans for exploration or development of the unit area; 5) the economic costs and benefits to the state; and 6) any other relevant factors, including measures to mitigate impacts identified above, the Director determines necessary or advisable to protect the public interest. 11 AAC 83.303(b). A discussion of the subsection (b) criteria, as they apply to the Agreement, is set out directly below, followed by a discussion of the subsection (a) criteria. A. Decision Criteria considered under 11 AAC 83.303(b) 1. The Environmental Costs and Benefits of Unitized Exploration or Development DNR considered environmental issues in the lease sale process, this unitization process, and will review them again during the unit plan of operations approval process. Unitized exploration, development, and production minimize surface impacts by consolidating facilities and reducing activity in the field. The Initial POE requires the drilling of two new exploratory wells within the unit area. The unit operator must obtain DNR's approval of a unit plan of operations and permits from various state and federal agencies before beginning operations, including exploratory wells, within the unit area. A unit plan of operations provides a more detailed plan for surface activities incident to exploration of the unit area than does a POE. When the unit operator begins the permitting process to commence operations under a POE in a coastal area, it must submit a Coastal Project Questionnaire, permit applications, and supporting information to the Alaska Division of Governmental Coordination (DGC). Consistency with the Alaska Coastal Management Program (ACMP) is determined by the DGC, state resource Page 3 . . agencies (DNR, DEC, ADF&G) and affected local governments (Kenai Peninsula Borough). The DGC conditions the proposed activity to ensure consistency with the ACMP and Kenai Peninsula Borough Coastal Management Program (KPBCMP). Submittal of these documents to the state initiates an intensive public and agency review process. DGC organizes an inter-agency review, determines which permits are required, and publishes a public notice soliciting comments from federal, state and local agencies, and the public. DGC designates a 50-day review schedule starting with the public notice. State and federal agencies are asked to review the application, request any additional information and submit comments. After reviewing the comments, DGC crafts additional mitigation measures as necessary to ensure the project is consistent with the ACMP and KPBCMP. DGC then issues a Proposed Consistency Determination for public comment. After the public comment period, additional stipulations may be imposed and a Final Consistency Determination may be issued for a project in the unit area. When reviewing a proposed unit plan of operations, the Division considers the unit operator's ability to compensate the surface owner for damage sustained to the surface estate and plans for restoration and rehabilitation of the unit area. In addition, DNR, DEC, and AOGCC have bonding and financial responsibility requirements to ensure performance by the operator and reclamation of the area. 11 AAC 96.060; 18 AAC 75; 20 AAC 25.025. Any new exploration activity that may occur following unitization, unless categorically approved under the ACMP ABC (General Concurrence) list, is subject to an ACMP consistency determination, and must comply with both the state and KPBCMP plans. The proposed Ninilchik Unit area is habitat for a variety of land and marine mammals, waterfowl and fish. Area residents may use this area for subsistence hunting and fishing. Oil and gas activity in the proposed unit area may affect some wildlife habitat and some subsistence activity. Mitigation measures, including seasonal restrictions on specific activities, reduce the impact on fish, wildlife, and human populations. Mitigation measures specifically address potential impacts to subsistence access and harvesting (See Attachment 2). Unitization and approval of a POE does not authorize any physical activity. It is simply one necessary step before DNR can accept an application for approval of a unit plan of operations or development. The Director's approval of a unit agreement is an administrative action, which by itself does not convey any authority to conduct any operations on leases within the unit. Unitization does not waive or reduce the effectiveness of the mitigating measures that condition the lessee's right to conduct operations on these leases. 2. The Geological and Engineering Characteristics of the Reservoir, Prior Exploration Activities in the Unit Area, and Plans for Exploration and Development of the Proposed Unit Area State regulation requires that a unit must encompass the minimum area required to include all or part of one or more oil or gas reservoirs, or potential hydrocarbon accumulations. 11 AAC 83.356(a). Division technical staff evaluated all data provided by the unit applicant to determine if the proposed unit area met those criteria. Marathon provided sufficient geological and PalYP 4 . . geophysical data for the Division to justify the formation of the Ninilchik Unit. Data submitted included: a geological justification for the formation of the unit; annotated well logs; a northeast- to-southwest cross section across the crest of the structure; representative strike and dip seismic cross sections across the Ninilchik anticline structure; and structure maps for two prospective horizons within the Tyonek Formation. The Ninilchik Unit encompasses approximately 25,167 acres that surround the Ninilchik anticline, the surface expression that is visible along the cliffs that crop out along the Kenai Peninsula coastline. The Ninilchik anticline stretches for over 16 miles along the coastline from near the community of Clam Gulch to just north of the town of Nini1chik. The anticline is also segmented by a number of crosscutting faults along the crest of the structure. The structure was recognized as a highly potential exploration target in the late 1950s and was mapped in the subsurface with the seismic, gravity, and magnetic tools available at the time. In 1960, the SOCAL Falls Creek 1 (SFC1) well was the first well drilled to test the promising anticlinal trap. Although the primary exploration objective was oil, it was completed as a gas well in 1961 in four sandstone zones within the Tyonek. The well has remained shut-in since then because the size of the accumulation has not yet justified the cost of facilities. Union drilled the Union Ninilchik 1 well in 1962 and tested gas in two Tyonek zones. Mobil drilled the Mobil Nini1chik 1 well in 1964 that was abandoned as a dry hole. Between 1968-1979 five exploration wells: the SOCAL Falls Creek 2; Falls Creek 43-6; Brinkerhoff Ninilchik 1; Union Clam Gulch 1; and the Texaco Nini1chik 1 were drilled with oil and gas objectives. Of these 5 wells, only the Texaco Ninilchik 1 well flow tested gas from one Tyonek zone. Marathon drilled the Corea Creek 1 well in 1996 that drill stem tested four zones within the Tyonek and recovered minimal gas with water. The results of the well verified the size of the Falls Creek accumulation. Marathon has re-examined the area in the past few years with new seismic and drilling technology. Because the crest of the structure parallels the coastline, acquiring quality seismic data along the intertidal transition zone between the offshore marine and coastal land has always been a difficult, technically challenging and costly problem. In May 2001, Marathon acquired three high quality 2D seismic lines over the southern end of the structure and along the crest of the structure to help delineate potential exploration targets, especially along the crest of the anticline and the area south of Falls Creek. Marathon is currently reprocessing these data. Marathon drilled and logged the Grassim Oskolkoff 1 well in 2000 and plans to test the Tyonek interval with the well in late 2001. Marathon is utilizing new technology advances (primarily in directional drilling and seismic acquisition and processing) that have evolved greatly since earlier phases of drilling on the Nini1chik structure. With new seismic data, Marathon is better able to identify and refine potential oil and gas exploration prospects within the Tyonek Formation. By the end of 2001, Marathon also plans to work-over the SFCl well to correct anomalous pressure in the tubing/casing annulus so that the well can be re-completed when facilities are in place to produce gas from the well. In 2002 Marathon plans to drill the Grassim Oskolkoff 2 well as a southern offset of the Grassim Oskolkoff 1 well in order to test the productivity of all prospective Tyonek reservoirs that can be mechanically reached within the limits of directional Page 5 . . drilling and completion technology. Marathon also plans to re-enter the Union Ninilchik 1 well in order to attempt to establish a sustainable completion in the Tyonek reservoirs. Future unit plans include a well on the northern fault block of the Nini1chik anticline to delineate gas potential within both the Tyonek and overlying Sterling reservoirs. Marathon has justified the size of the Nini1chik Unit based on the technical data and the accompanying proposed work plan that outlines how it plans to systematically explore, delineate, develop, and produce economic gas reserves, primarily within the Tyonek Formation. The Initial POE sets out a timely sequence of reservoir(s) delineation activities that will facilitate the ultimate development and production of the reservoir(s), if oil or gas is discovered in commercial quantities. Furthermore, completion of the proposed exploration activities as scheduled, the proposed work scope in the Initial POE, will satisfy the performance standards and diligence requirements that the state and the WIOs have agreed to as a condition for approval of the Agreement. The Division and the majority WIOs in the proposed Nini1chik Unit, Marathon and Unocal, have agreed that failure to perform the entire proposed work scope set out in the Initial POE is a default under the Agreement and will result in the automatic termination of the Nini1chik Unit. Substitutions of individual items in the Initial POE will be permitted at the sole discretion of the Division. It was also agreed that after 2002 and the completion of the projects proposed for that year, and based on the results/information obtained by that time and the projects completed, the WIOs may propose to amend the Initial POE to not perform the balance of the proposed work scope. In this event, the unit area will be contracted to the area defined by the then currently available information and the proposed further unit exploration, delineation, or production activities. The Division, in its sole discretion, will determine the revised unit area. Because eight wells have already been drilled within the proposed Ninilchik Unit, the Division had concerns about continuing the Agreement if no additional delineation, appraisal, or development activities were proposed beyond those in the Initial POE. Before the Application was submitted, the Division told the WIOs that the Agreement would only continue past the initial term, December 31, 2004, if further appraisal, delineation, or development/production activities were proposed beyond the Initial POE. The Division expected activity beyond the Initial POE in order to continue the Ninilchik Unit. Consequently, an understanding was reached with the WIOs that they will address the further appraisal and delineation or development of the area in their second POE or first Plan of Development (POD), whichever immediately follows the Initial POE. The WIOs acknowledge that as part of the second POE or first POD the Division intends to require additional drilling, further exploration activities, sustained commercial production, and/or a demonstration of efforts to proceed to further development and production within the unit area. The WIOs further acknowledge that if additional drilling, further exploration activities, sustained commercial production, or efforts to put the unit into production, satisfactory to the Division, are not proposed for the unit area in the second POE or first POD, the Ninilchik Unit will automatically terminate on the expiration date of the Initial POE. The expression of Division's intent in this paragraph is not meant to limit the powers the Division otherwise has to review an application for approval of a POE or POD. Pa!!'e 6 . . Failure to timely apply for and obtain approval of a second POE or first POD will result in immediate and automatic termination of the Ninilchik Unit. If the Nini1chik Unit terminates for failure to fulfill any of the commitments in the Initial POE, or timely apply for and obtain approval of a second POE or first POD, the WIOs will automatically surrender all leases within the Ninilchik Unit whose primary terms have expired and are not otherwise continued under the leases, effective the day the Nini1chik Unit terminates. The WIOs have agreed to waive the extension provisions of 11 AAC 83.140 and Article 15.2 of the Agreement, and the notice and hearing provisions of 11 AAC 83.374 applicable to default and termination of the Nini1chik Unit. The Initial POE with the agreed-to terms and conditions ensures that the lease extensions resulting from unitization under 11 AAC 83.336 continue only so long as the applicants proceed diligently with exploration and development. 3. The Economic Costs and Benefits to the State and Other Relevant Factors Approval of the Agreement in combination with the Initial POE will result in both short-term and long-term economic benefits to the state. The assessment of the hydrocarbon potential of the leases will create jobs in the short-term. If the WIOs make a commercial discovery and begin development/production from the Ninilchik Unit, the state will earn royalty and tax revenues over the long-term life of the field. The primary term of five leases in the proposed unit area will expire December 31, 2001, and another lease's primary term expires on December I, 200 I, unless extended by unitization. If the leases expire, the leasehold interest will return to the state. The earliest that DNR could reoffer the land, under the current Five- Year Oil and Gas Lease Sale Schedule, is May 2002. If DNR leased the expired lands in 2002, the state could receive bonus payments and rentals for the primary term of the new leases. However, it could be years before the new lessees would propose exploration of the area a..ïd even longer before the state receives royalties a..ïd taxes on any commercial production. The potential long-term economic benefit of exploration and earlier development of the Nini1chik Unit area outweighs the short-term loss of potential bonus payments. The ten State of Alaska leases proposed for the Nini1chik Unit are written on a variety of forms, containing a variety of provisions. Including the leases in the Ninilchik Unit Agreement would conform and modify the lease contracts to be consistent with the Agreement. Consistent lease provisions allow the WIOs and the state to reduce the administrative burdens of operating and regulating this unit. Conforming the terms of the older leases to the Agreement allows the state to avoid costly and time-consuming re-litigation of some problematic lease provisions in the older forms. Marathon and Unocal control approximately 85.43% of the unit area. The next largest interest group in the proposed Nini1chik Unit is the uncommitted individual mineral interest owners with approximately 9.102 %. Under the Ninilchik Unit Joint Operating Agreement, any party with at least 30% interest can propose and cause the drilling of exploratory or development wells. Despite the fact that less than 100% of the leases are committed to the unit, Marathon has Page 7 . . demonstrated that a reasonable effort was made to obtain joinder of all proper parties (record owners of oil and gas interests) within the proposed Nini1chik Unit area. 11 AAC 83.306(3) and 11 AAC 83.328. Furthermore, Marathon and Unocal, representing 85.43% of the working interest ownership in the Ninilchik Unit, hold sufficient interest in the unit area to give reasonable effective control of unit operations. 11 MC 83.316(c). The majority WIOs have provided technical data sufficient to define the prospect under consideration, have committed their diverse lease interests to the proposed unit and have agreed to a POE that ensures a timely sequence of drilling and development activities in order to evaluate and develop all the acreage within the proposed unit area. The Initial POE with the agreed-to terms and conditions advances exploration and evaluation of the prospects in the unit area sooner than would occur under any individual lease exploration effort. B. Decision Criteria considered under 11 AAC 83.303(a) 1. The Conservation of All Natural Resources DNR recognizes unitization of the leases overlying a reservoir as a prudent conservation mechanism. Without unitization, the unregulated development of reservoirs can become a race for possession by competing operators. This race can result in: 1) unnecessarily dense drilling, especially along property lines; 2) rapid dissipation of reservoir pressure; and 3) irregular advance of displaced fluids, all of which contribute to the loss of ultimate recovery or economic waste. The proliferation of surface activity, duplication of production, gathering, and processing facilities, and haste to get oil to the surface also increase the potential for environmental damage. Lessee compliance with conservation orders and field pool rules issued by the AOGCC would mitigate some of these impacts without an agreement to unitize operations. Still, unitization is the most efficient method for maximizing oil and gas recovery, while minimizing negative impacts on other resources. Formation of the unit will provide the state with a comprehensive plan for exploring and developing the entire unit area. Formation of the Ninilchik Unit and implementation of the Initial POE will ensure that WIOs prudently explore the acreage included in the unit. The Agreement will promote the conservation of both surface and subsurface resources through unitized (rather than lease-by-Iease) development. Unitization allows the unit operator to explore the area as if it were one lease. Without the Agreement the lessee would be compelled to seek permits to drill wells on each individual lease in order to extend the leases beyond their primary terms. Unitization reduces both the number of facilities required to develop reserves that may be discovered and the aerial extent of land required to accommodate those facilities. Review and approval of exploration and development permits under a unit agreement will also ensure that rational surface-use decisions are made without consideration of individual lease ownership or expense. After unitization, facilities can be designed and located to maximize recovery and to minimize environmental impact, without regard to lease ownership. Although the applicant has not determined the extent of any oil and gas contained in the prospective reservoir, the Agreement will ensure that the acreage is explored and recovery from the leases is maximized if a commercial hydrocarbon accumulation is discovered. Page 8 . . 2. The Prevention of Economic and Physical Waste The unit will prevent economic and physical waste because the unit operator must have a cost sharing agreement, a coordinated exploration plan, and if a commercial discovery is made, a comprehensive reservoir depletion model. A cost-sharing agreement promotes efficient development of common surface facilities and operating strategies. With a cost-sharing agreement and reservoir model in place, the WIOs in the unit can rationally decide well spacing requirements, injection plans, and the proper joint-use of surface facilities. Unitization prevents economic and physical waste by eliminating redundant expenditures for a given level of production, and by avoiding loss of ultimate recovery with the adoption of a unified reservoir management plan. Unitized operations improve development of reservoirs beneath leases that may have variable or unknown productivity. Marginally economic reserves, which otherwise would not be produced on a lease-by-Iease basis, can be produced through unitized operations in combination with more productive leases. Facility consolidation lowers capital costs and promotes optimal reservoir management for all WIOs. Pressure maintenance and secondary recovery procedures are easier to design and achieve through joint, unitized efforts than would otherwise be possible. In combination, these factors allow less profitable areas of a reservoir to be developed and produced in the interest of all parties, including the state. The total cost of exploring and developing the Ninilchik Unit leases would be higher on a lease- by-lease basis than it would be under unitization terms. Drilling and facilities investment costs will be minimized as a consequence of eliminating a need for numerous sites within the unit area. Locations of individual wells and surface facilities will be selected to optimize ultimate oil and gas recovery, while minimizing or completely avoiding adverse impacts to the environment. Reducing costs a..."1d environmental impacts through unitized operations will expedite development of any reserves discovered and will promote greater ultimate recovery of any oil and gas from the unit area. This will increase and extend the state's income stream from production taxes and royalties. The revenues to the lessees and unit operator may be reinvested in new exploration and development in the state. Unitization means reduced costs and increased benefits to all interested parties. It benefits the local and state economy, and provides revenues to the state's general, school, constitutional budget reserve, and permanent funds. 3. The Protection of All Parties in Interest, Including the State The Agreement in combination with the Initial POE with the agreed-to terms and conditions outlined in Section m.A.2 promotes the state's economic interests because exploration will likely occur earlier than without unitization. Diligent exploration under a single approved unit plan without the complications of competing operators is in the state's best interest. It advances evaluation of the state's petroleum resources, while minimizing impacts to the region's cultural and environmental resources. A commercial discovery will stimulate the state's economy with production-based revenue, oil and gas related jobs, and service industry activity. Page 9 . . The Agreement provides for accurate reporting and record keeping, state approval of plans of exploration and development and operating procedures, royalty settlement, in-kind taking, and emergency storage of oil and gas, all of which will further the state's interest. The modifications to the varying provisions of some of the leases will economically benefit the state, and reduce the administrative burdens of operating and regulating this unit. The formation of the Nini1chik Unit protects the economic interests of all WIOs and royalty owners of a common reservoir. Operating under a unit agreement and unit operating agreement assures each individual WIO an equitable allocation of costs and revenues commensurate with the value of their lease(s). The provisions of the Agreement and state law that provide for notice and an opportunity to be heard if they disagree with a unit management decision made by the state also protect the WIOs. IV. FINDINGS AND DECISION A. The Conservation of All Natural Resources 1. The Agreement will conserve all natural resources, including hydrocarbons, gravel, sand, water, wetlands, and valuable habitat. 2. The unitized development and operation of the leases in this proposed unit will reduce the amount of land and fish and wildlife habitat that would otherwise be disrupted by individual lease development. This reduction in environmental impacts and preservation of subsistence access is in the public interest. 3. If the exploration activities under the Initial POE result in the discovery of a commercially producible reservoir, there may be environmental impacts associated with reservoir development. All unit development must proceed according to an approved plan of development. Additionally, before undertaking any specific operations, the unit operator must submit a unit plan of operations to the Division and other appropriate state and local agencies for review and approval. The lessees may not commence any drilling or development operations until all agencies have granted the required permits. DNR may condition its approval of a unit plan of operations and other perllÙts on performance of llÙtigation measures in addition to those in the modified leases and the Agreement, if necessary or appropriate. Compliance with mitigation measures will llÙnimize, reduce or completely avoid adverse environmental impacts. B. The Prevention of Economic and Physical Waste 1. Marathon submitted geological data to the Division in support of the Application. Division technical staff deterllÙned that the Ninilchik Unit area encompasses all or part of one or more potential hydrocarbon accumulations. The available geological data justify including the proposed lands, described in Exhibit A to the Application, in the Ninilchik Unit. Page 10 . . 2. The Initial POE provides for the reasonable exploration of potential hydrocarbon accumulations in the unit area. If the WIOs discover oil or gas in commercial quantities, the Agreement will prevent the waste of oil and gas, and increase the probability of recovering more hydrocarbons from the unit area. The Division must approve a plan of development before the unit operator produces any hydrocarbons in commercial quantities. c. The Protection of All Parties in Interest, Including the State 1. Marathon provided evidence of reasonable effort to obtain joinder of any proper party to the Agreement. 2. Marathon and Unocal hold sufficient interest in the unit area to give reasonably effective control of operations, and ten State of Alaska leases are proposed for the Ninilchik Unit. 3. The Agreement, conditioned upon the performance of the Initial POE, adequately and equitably protects the public interest, and is in the state's best interest. 4. The Agreement meets the requirements of AS 38.05. 180(p) and 11 AAC 83.303. 5. The Division complied with the public notice requirements of 11 AAC 83.311. 6. The Agreement will not diminish access to public and navigable waters beyond those limitations (if any) imposed by law or already contained in the oil and gas leases covered by this Agreement. 7. The Agreement provides for expansions and contractions of the unit area in the future, as wa:cranted by data obtained by exploration or otherwise. The Agreement thereby protects the public interest, the rights of the parties, and the correlative rights of adjacent landowners. 8. The applicant's Initial POE, subject to the terms and conditions discussed in Section m.A.2, meets the requirements of 11 MC 83.303 and 11 AAC 83.341. The Initial POE, Exhibit G to the Agreement, is approved until December 31, 2004. The unit operator must conduct the proposed exploration activities in accordance with the timelines specified in the plan. The Initial POE describes the performance standards and diligence requirements that the state requires. If the WIOs fail to perform any of the exploration activities outlined in the Initial POE as scheduled, the plan will be in default and the unit will terminate. 9. The Unit Operator must submit an annual status report on the Initial POE to the Division. The annual status report must describe the status of projects undertaken and the work completed, as well as any proposed changes to the plan. In order to Page 11 . . be approved by the state, changes to the Initial POE must comply with Article 8 of the Agreement and Section III.A.2 of this Decision. The unit operator must also subIIÚt an application for approval of a second POE 60 days before the Initial POE expires, or, if appropriate, an application for approval of a first POD 90 days before the Initial POE expires. 10. The Ninilchik Unit will expedite exploration and potential development of the unit area. With the formation of the Ninilchik Unit, econoIIÚc benefits to the state outweigh the econoIIÚc costs of extending the primary term of the state leases committed to the unit. For the reasons discussed in this Findings and Decision, I hereby approve the Ninilchik Unit Agreement subject to the conditions specified herein. The Agreement shall become effective as of 12:01 a.m. on the day following approval by the Director. A person affected by this decision may appeal it, in accordance with 11 AAC 02. Any appeal must be received within 20 calendar days after the date of "issuance" of this decision, as defined in 11 AAC 02.040(c) and (d) and may be mailed or delivered to Pat Pourchot, Commissioner, Department of Natural Resources, 550 W. 7th Avenue, Suite 1400, Anchorage, Alaska 99501; faxed to 1-907-269-8918, or sent by electronic mail to dncappeals@dnr.state.ak.us. This decision takes effect immediately. An eligible person must first appeal this decision in accordance with 11 AAC 02 before appealing this decision to Superior Court. A copy of 11 AAC 02 may be obtained from any regional information office of the Department of Natural Resources. Appeal Code:OG0103001NUAGREEMENTAPPRV ;::Øzr Q ~~ Mark D. Myers, Director Division of Oil and Gas C;:t:lo0~ .32? I 2 ð" ( Date Attachments: 1. Exhibit B, Map of the Unit Boundary 2. Cook Inlet Areawide 1999 Mitigation Measures Ninilchik_ UnicDecision Page 12 . . Mitigation Measures for Cook Inlet Areawide 1999 AS 38.05.035(e) and the departmental delegation of authority prpvide the director, Division of Oil and Gas (DO&G), with the authority to impose conditions or limitations, in addition to those imposed by statute, to ensure that a resource disposal is in the state's best interests. Consequently, to mitigate the potential adverse social and environmental effects of specific selected lease related activities, DO&G has developed mitigation measures and wiU condition plans of operation, exploration, or development, and other permits based on these mitigation measures. Under AS 38.05.035(e), ADNR has authority to apply the following mitigation measures developed for this Cook Inlet Areawide leasa sale, to all oil and gas activities performed to access the state's leased mineral interest, regardless of the surface ownership status of the land from which the lessee seeks access. Lessees must obtain approval of a detailed plan of operations from the Director before conducting exploratory or development activities (11 MC 83.158). An approved plan of operations is the authorization by which DO&G regulates exploration, development, and production activities. A plan of operations must identify the specific measures, design criteria, and construction methods and standards to be employed to comply with the restrictions listed below. It must also address any potential geophysical hazards that may exist at the site. Plans of operation must comply with coastal zone consistency review standards and procedures established under 6 AAC 50 and 80 including coastal district plans. Applications for required state or federal agency authorizations or permits must be submitted with the plan of operations. DO&G will require, as a condition of consistency approval, such modification or terms as may be necessary to ensure consistency with the ACMP standards. These measures were developed after considering terms imposed in other Cook Inlet region oil and gas lease sales; fish and wildlife resource and harvest data submitted by ADF&G; environmental data relating to air and water quality, solid and liquid waste disposal, and oil spills submitted by ADEC; consensus items from the Cook Inlet Areawide stakeholders process, as well as comments submitted by the public, local governments, environmental organizations, and other federal, state, and local agencies. Additional project-specific Mitigation Measures are imposed if and when oil and gas lessees submit proposed plans of exploration, operation, or development. In addition to compliance with these mitigation measures, lessees must comply with all applicable local, state and federal codes, statutes and regulations, and any subsequent amendments. Lessees must also comply with all current or future ADNR area plans and recreation rivers plans; and ADF&G game refuge plans, oritical habitat area plans, and sanctuary area plans within which a leased area is located. Federal, state and local government powers to regulate the oil and gas industry are discussed in the "Govemmental powers to Regulate Oil and Gas Exploration, Development, Production, and Transportation" Chapter Eight of this finding. In addition, Appendix B lists federal and state statutes and regulations that apply to lease activities. Information to lessees relevant to the lease sale is also presented in the "Lessee Advisories," section B of this Chapter. This section contains important information to lessees and operators regarding the sale area. It also includes precautions which may apply to post-lease sale activities, and reflect existing local, state, and federal law or policy at the time of the sale. Hereafter, wherever abbreviations are used they mean: Alaska Coastal Management Program (ACMP), Alaska Department of Environmental Conservation (ADEC), Alaska Department of Fish and Game (ADF&G), Alaska Department of Natural Resources (ADNR), Alaska Oil and Gas Cònservation Commission (AOGCC), Areas Meriting Special Attention (AMSA), Director (Director, Division of Oil and Gas), Division of Forestry (DOF), Division of Land (DL), Division of Oil and Gas (DO&G), Division of Parks and Outdoor Recreation (DPOR), Division of Mining and Water Management (DMWM), Kenai Peninsula Borough (KPB), Municipality of Anchorage (MOA), Matanuska-Susitna Borough (MSB), State Historic Preservation Officer (SHPO), and U.S. Fish and Wildlife Service (USF&WS). Lessees are advised that portions of the sale area may be subject to special area permits by ADF&G to protect areas designated by the legislature as state game refuges in AS 16.20.010 -AS 16.20.080. For those mitigation measures and lessee advisories that are within ADNR's authority, the Lessee may request, and the Director of DO&G may grant, exceptions if compliance with the mitigation measure is not feasible or prudent, or an equal or better altemative is offered. Requests and justifications for exceptions must be included in the Initial Plan of Operations when one is required. The decision whether to grant an exception will be based on review of the Plan of Operations by the public . . and in consultation with appropriate state resource agencies. Mitigation measures subject to exceptions are noted with an asterisk (*), followed by the initials of the agency that must be consulted in any decision to grant an exception. Critical habitat areas and state game refuges are jointly managed by ADNR and ADF&G; exceptions to mitigation measures In these areas must be agreed to by both agencies. Agency abbreviations are: ADF&G (Alaska Department of Fish and Game), ADEC (Alaska Department of Environmental Conservation), DL (Division of Lands) and DOF (Division of Forestry). Except as indicated, the restrictions listed below do not apply to geophysical activity on state land; geophysical exploration is governed by 11 AAC 96. The following mitigation measures and advisories will be imposed on oil and gas activities in or on all Cook Inlet Areawide leased lands and waterbodies as a condition of the approval of plans of operation: General 1. Oil and hazardous substance pollution control: In addition to addressing the prevention, detection, and cleanup of releases of oil, contingency plans (C-Plans) for oil and gas extraction operations should include, but not be limited to, methods for detecting, responding to, and controlling blowouts; the location and identification of oil spill cleanup equipment; the location and availability of suitable alternative drilling equipment; and a plan of operations to mobilize and drill a relief well. 2. Use of explosives will be prohibited in open water areas of fishbearing streams and lakes. Explosives must not be detonated beneath, or in close proximity to fishbearing streams and lakes if the detonation of the explosive produces a pressure rise in the waterbody greater than 2.5 pounds per square inch (psi) unless the waterbody, Including its substrate, is solidly frozen. Explosives must not produce a peak particle velocity greater than 0.5 inches per second (ips) in a spawning bed during the early stages of egg incubation. The minimum acceptable offset from fishbearing streams and lakes for various size buried charges is: Charg~ Weight 1 pound charge 2 pound charge 5 pound charge 10 pound charge 25 pound charge 100 pound charge Distance from Stream 37 feet (11.2 m) 52 feet (15.8 m) 82 feet (25.0 m) 116 feet (35.4 m) 184 feet(50.1 m) 368 feet (112.2 m) There are numerous fishbearing streams and lakes within the sale area. Specific information on the location of these waterbodies may be obtained by contacting ADF&G. 3." Onshore exploration activities must be supported by air service, an existing road system or port facility, ice roads, or by vehicles which do not cause significant damage to the ground surface or vegetation. Unrestricted surface travel may be permitted by the directors of DO&G and DL, if an emergency condition exists. Construction of temporary roads may be allowed. Temporary means that a road must be removed to the extent that it is rendered impassable or is otherwise rehabilitated in a manner such that any placed gravel remaining approximates surrounding natural features. Construction of permanent roads will be prohibited during the exploration phase. ·Exception -DL. 4. a. Removal of water from fishbearing rivers, streams, and natural lakes shall be subject to prior written approval by DMWM and ADF&G. b. Compaction or removal of snow cover overlying fishbearing waterbodies will be prohibited except for approved crossings. If ice thickness is not sufficient to facilitate a crossing, ice and/or snow bridges may be required. 5. Water intake pipes used to remove water from fishbearlng waterbodies must be surrounded by a screened enclos!... ~ to prevent fish entrainment and impingement. Screen mesh size shall not exceed 0.04 inches unless another size has . . been approved by ADF&G. The maximum water velocity at the surface of the screen enclosure may be no greater than 0.1 foot per second. Facilities and Structures 6. a. The siting of onshore facilities, other than docks, or road and pipeline crossings, will be prohibited within 500 feet of all fishbearing streams and lakes. Additionally, siting of facilities will be prohibited within one-half mile of the banks of Harriet, Alexander, Lake, Deep and Stariski creeks, and the Drift, Big, Kustatan, McArthur, Chuitna, Theodore, Beluga, Susitna, Little Susitna, Kenai, Kasilof, Ninilchik and Anchor rivers. New facilities may be sited within the one- half mile buffer if the lessee demonstrates that the alternate location is environmentally preferable, but in no instance will a facility be located within one-quarter mile of the river bank. ADF&G concurrence will be required for siting within the one-half mile buffer. Road and pipeline crossings must be aligned perpendicular or near perpendicular to watercourses. b. Lessees will minimize sight and sound impacts for new facilities sited less than one-half mile from river banks and in areas of high recreational use by (1) providing natural buffers and screening to conceal facilities; (2) conducting exploration operations between October 1 and April 30; and (3) using alternative techniques to minimize impacts. c. Surface entry will be prohibited in parcels that are within the Kenai River Special Management Area (KRSMA). d. Surface entry will be prohibited on state lands within the Kenai National Wildlife Refuge. This term does not limit surface entry on other private lands within the refuge. e. Lessees are prohibited from placing drilling rigs and lease-related facilities and structures within an area near the Kenai River composed of: all land within Section 36 in T6N, R11 W that is located south of a line drawn from the protracted NE corner to the protracted SW corner of the section; all land within the western half of Section 31 in TeN, R10W and Section 6 in T5N, R10W; and all land within Section 1 in T5N, R11W. 1. A fresh water aquifer monitoring well with quarterly water quality monitoring should be required down gradient .of a permanent storage facility unless alternative acceptable technology is approved by ADEC. 7. The siting of new facilities in key wetlands and sensitive habitat areas should be limited to the extent possible. If facilities are to be located within these areas, the lessee should demonstrate to the satisfaction of the Director and ADF&.G that impacts are minimized through appropriate mitigation measures. 8." Measures will be required by the Director, after consultation with ADF&G and ADEC, to minimize the impact of industrial development on key wetlands. Key wetlands are those wetlands that are important to fish, waterfowl, and shorebirds because of their high value or scarcity in the region or that have been determined to function at a high level using the hydrogeomorphic approach. Lessees must identify on a map or aerial photograph the largest surface area, including reasonably foreseeable future expansion areas, within which a facility is to be sited, or an activity will occur. The map or photograph must accompany the plan of operations. DO&G will consult with ADF&G and ADEC to identify the least sensitive areas within the area of interest. To minimize impacts, the lessee must avoid siting facilities in the identified sensitive habitat areas. "Exception - ADF&G, ADEC. 9.* Impermeable lining and diking, or equivalent measures such as double-walled tanks, will be required for onshore oil storage facilities (with a total above ground storage capacity greater than 1,320 gallons, provided no single tank capacity exceeds 660 gal) and for sewage ponds. Additional site-specific measures may be required as determined by ADNR, with the concurrence of ADEC, and will be addressed in the existing review of project permits or oil spill contingency plans (C- Plans). . Buffer zones of not less than 500 feet will be required to separate onshore oil storage facilities and sewage ponds from marine waters and freshwater supplies, streams and lakes, and key wetlands. Sumps and reserve pits must be impermeable and otherwise fully contained through diking or other means. "Exception - ADF&G, ADEC. 10.* With the exception of drill pads, airstrips, and roads permitted under Term 3, exploration facilities must be consolidated, temporary, and must not be constructed of gravel. Use of abandoned gravel structures may be permitted on an individual basis. "Exception· ADF&G, DL. . . 11. a. Wherever possible, onshore pipelines must utilize existing transportation corridors and be buried where soil and geophysical conditions permit. In areas where pipelines must be placed above ground, pipelines must be sited, designed and constructed to allow free movement of moose and caribou. b. Offshore pipelines must be located and constructed to prevent obstructions to marine navigation and fishing operations. c. Pipelines must be located upslope of roadways and construction pads and must be designed to facilitate the containment and cleanup of spilled hydrocarbons. Pipelines, flowlines, and gathering lines must be designed and constructed to assure integrity against climatic conditions, tides and currents, and other geophysical hazards. Local Hire 12. To the extent they are available and qualified, the lessee is encouraged to employ local and Alaska residents and contractors for work performed on the leased area. Lessees shall submit, as part of the plan of operations, a proposal detailing the means by which the lessee will comply with the measure. The proposal must include a description of the operator's plans for partnering with local communities to recruit and hire local and Alaska residents and contractors. The lessee is encouraged, in formulating this proposal, to coordinate with employment services offered by the state of Alaska and local communities and to recruit employees from local communities. Training 13. Lessee must include in any plan of exploration or plan of development, a training program for all personnel, including contractors and subcontractors, involved in any activity. The program must be designed to Inform each person working on the project of environmental, social, and cultural concerns which relate to the individual's job. The program must employ effective methods to ensure that personnel understand and use techniques necessary to preserve geological, archeological, and biological resources. In addition, the program must be designed to help personne' increase their sensitivity and understanding of community values, customs, and lifestyles in areas where they will b, operating. Access 14. a. Public access to, or use of, the leased area may not be restricted except within 1,500 feet (457 m) or iess of onshore drill sites, buildings, and other related structures. Areas of restricted access must be identified In the plan of operations. b. No lease facilities or operations may be located so as to block access to or along navigable and public waters as defined at AS 38.05.965(13) and (17). 15. Lease-related use will be restricted when the commissioner determines it is necessary to prevent unreasonable conflicts with local subsistence harvests and commercial fishing operations. In enforcing this term the division, during review of plans of operation or development, will work with other agencies and the public to assure that potential conflicts are identified and avoided. In order to avoid conflicts with fishing activities, restrictions may include alternative site selection, requiring directional drilling, seasonal drilling restrictions, subsea completion techniques, and other technologies deemed appropriate by the commissioner. Prehistoric, Historic, and Archeological Sites 16. a. Prior to the construction or placement of any structure, road, or facility resulting from exploration, development, or production activities, the lessee must conduct an inventory of prehistoric, historic, and archeological sites within the area affected by an activity. The inventory must include consideration of literature provided by the KPB, MOA, MSB and local residents; documentation of oral history regarding prehistoric and historic uses of such sites; evidence of consultation with the Alaska Heritage Resources Survey and the National Register of Historic Places; and site surveys. The inventory must also include a detailed analysis of the effects that might result from the activity. b. The inventory must be submitted to the Director for distribution to DPOR for review and comment. In the event that ét prehistoric, historic, or archeological site or area may be adversely affected by a leasehold activity, the Director, after . . consultation with DPOR and the KPB, MOA or MSB, will direct the lessee as to what course of action will be necessary to avoid or minimize the adverse effect. c. Discovery of prehistoric, historic, or archaeological objects: In the event any site, structure, or object of prehistoric, historic, or årchaeological significance is discovered during leasehold operations, the lessee must immediately report such findings to the Director. The lessee must make every reasonable effort to preserve and protect such site, structure, or object from damage until the Director, after consultation with the SHPO, has given directions as to its preservation. Fishbearing Streams 17. Under Title 16 of the Alaska Statutes, the measures listed below will be imposed by ADF&G below the ordinary high water mark to protect designated anadromous fish-bearing streams. Similar provisions will be imposed by the Director to protect non-anadromous fish bearing streams. Specific information on the location of anadromous waterbodies in and near the area may be obtained from ADF&G. a. Alteration of river banks will be prohibited. b. Operation of equipment within riparian habitats will be prohibited. c. The operation of equipment, excluding boats, in open water areas of rivers and streams will be prohibited. d. Bridges or non-bottom founded structures will be required for crossing fish spawning and important rearing habitats. In areas where culverts are used, they must be designed, installed, and maintained to provide efficient passage of fish. Waste Disposal 18. Solid waste disposal: a. Solid waste generated from the development and/or operation of the lease areas shall be reduced, reused, or recycled to the maximum extent practicable. Garbage and domestic combustible refuse must be incinerated where appropriate. Remaining solid waste shall be taken to an approved disposal site, in accordance with 18 MC 60. New solid waste disposal sites will not be approved or located on state property during the exploratory phase. Exceptions may be provided for drilling waste if the facility wHl comply with the applicable provisions of 18 MC 60. b. The preferred method for disposal of muds and cuttings from oil and gas activities is by underground injection. Injection of non-hazardous oilfield wastes generated during development is regulated by AOGCC through its Underground Injection Control (UIC) Program for oil and gas wells. c. Discharge of drilling muds and cuttings into lakes, streams, rivers, and high value wetlands is prohibited. Surface discharge of drilling muds and cuttings into reserve pits shall be allowed only when it is determined that underground injection is not technically achievable. A solid waste disposal permit must be obtained from ADEC. If use of a reserve pit is proposed, the operator must demonstrate the advantages of a reserve pit over other disposal methods, and describe methods to be employed to reduce the disposed volume. Onpad temporary cuttings storage will be allowed as necessary to facilitate annular injection and/or backhaul operations in accordance with ADEC solid waste regulations 18 MC 60. 19. Wastewater disposal: a. Unless authorized by NPDES and/or state permit, disposal of wastewater into freshwater bodies, intertidal areas, or estuarine waters is prohibited. b. Disposal of produced waters to freshwater bodies, intertidal areas, and estuarine waters is prohibited. c. Disposal of produced waters in upland areas, including wetlands, will be by subsurface disposal techniques. . . d. Surface discharge of reserve pit fluids will be prohibited unless authorized in a permit issued by AOGCC anc' approved by DL. Gravel Mining 20. Gravel mining within an active floodplain will be prohibited. Upland sites will be restricted to the minimum necessary to develop the field in an efficient manner. Special Areas 21. Management of legislatively designated state game refuges and critical habitat areas is the co-responsibility of ADF&G (AS 16.20.050-060) and ADNR (AS 38.05.027). For activities occurring within a refuge or critical habitat area, the lessee will be required to obtain permits from both ADNR and ADF&G. Five state game refuges (SGR) and four critical habitat areas (CHA) are located within or partially within the sale a.rea: The Goose Bay SGR, Palmer Hay Flats SGR, Anchorage Coastal Wildlife Refuge, Susitna Flats SGR, Trading Bay SGR, Redoubt Bay CHA, Kalgin Island CHA, Clam Gulch CHA, and Anchor River and Fritz Creek CHA. Operations within these refuges must comply with the terms and conditions of the sale, the regulations contained in 5 MC 95, and the requirements applicable to special area management plans. Where the requirements of this term are more restrictive than the requirements of other Sale 85 terms, the provisions of this term prevail. a. Surface entry for drilling and above ground lease-related facilities and structures will be prohibited within the Palmer Hay Flats SGR, Anchorage Coastal Wildlife Refuge, Clam Gulch CHA, Anchor River and Fritz Creek CHA, within the core Tule goose and trumpeter swan nesting and molting corridors along the Big, Kustatan, and McArthur rivers in the Trading Bay SGR and Redoubt Bay CHA, and on tidelands and wetlands in the Goose Bay SGR and Kalgin Island CHA. Surface entry may be allowed on uplands within the Goose Bay SGR and Kalgin Island CHA; and surface entry for seismic surveys and similar temporary activities may be allowed in all of these areas, consistent with the Specie' Area regulations and applicable Special Aiea management plans. Directional drilling from adjacent sites may b allowed. b. Exploration, development, and major maintenance within important Tule goose and trumpeter swan habitat in Trading Bay SGR, the Redoubt Bay CHA, and the Susitna Flats SGR, and the primary waterfowl area within the Susitna Flats SGR and Trading Bay SGR will be allowed only between November 1 and March 31, unless an extension is approved by ADF&G and DO&G. Routine maintenance and emergency repairs will be permitted on a year-round basis during the production phase. A detailed plan describing routine maintenance activities to be conducted between April 1 and October 31 must be submitted to ADF&G and DO&G for review and approval. c. Gravel pads and wellheads are the only above ground structures that will be allowed within the primary waterfowl areas in the Susitna Flats SGR and the Trading Bay SGR and Important Tule goose and trumpeter swan habitat in the Trading Bay SGR, Redoubt Bay CHA and Susitna Flats SGR. Construction activities within a refuge must utilize the best available technology to minimize the visual, biological, and physical impacts of these structures and must be approved in writing by ADF&G and the Director. d. Surface discharge of produced waters will be prohibited. e. Disposal of drilling muds and cuttings will be allowed only at upland sites approved by the Director and ADF&G, after consultation with DL and ADEC. f. Facilities must be designed and constructed to prevent the spill and spread of hydrocarbons and to facilitate cleanup efforts. g. Facilities must be designed to minimize the possibility of spills or fires resulting from vandalism or hunting accidents. h. Upon abandonment or expiration of a lease, all facilities must be removed and the sites rehabilitated to satisfaction of ADF&G and the Director. The departments may determine that it is in the best interest of the public to . . retain some or all of the facilities. Rehabilitation requirements will be identified in a Habitat Special Area Permit (AS 16.20.060 and/or AS 16.20.530). i. Gravel roads will not be allowed during exploration unless an exception is granted as provided above. j. Public access to, or use of, the leased area may not be restricted except within the immediate vicinity of onshore drill sites, buildings, and other related structures. Areas of restricted access must be identified in the plan of operations. No lease facilities or operations may be located so as to block access to or along navigable and public waters as defined at AS 38.05.965(13) and (17). 22. Surface entry into the critical waterfowl habitat along the Kasilof River is prohibited. Directional drilling from adjacent sites may be allowed. 23.* Surface entry will be prohibited within one-quarter mile of trumpeter swan misting sites between April 1 through August 31. The siting of permanent facilities, including roads, material sites, storage areas, powerlines, and above-ground pipelines will be prohibited within one-quarter mile of known nesting sites. Trumpeter swan nesting sites will be identified by ADF&G at the request of the (essee. "Exception - ADF&G. 24. If the lessee discovers a previously unreported active or inactive bald eagle nest site, the lessee must immediately report the nest location to the Director. Lessees are advised that oil and gas activities likely to disturb nesting eagles are subject to the provisions of the Bald Eagle Act of 1940, as amended. Permanent facilities may be prohibited within one-quarter mile and will be prohibited within 500 feet of nests, active or inactive. Surface entry, fixed wing aircraft flights below 500 vertical feet, and helicopter flights below 1,500 vertical feet will be prohibited within 500 feet of active nests between April 1 and August 31. Human safety shall take precedence over this provision. Temporary activities within 500 feet of nesting sites may be allowed between September 1 and March 31 if they will not alter bald eagle habitat. Maps identifying documented nest sites will be made available by ADF&G, upon request. 25. The following measures will be required to minimize impacts on Kenai Lowlands Caribou Herd: a. Surface entry within the core caribou calving area is prohibited, except that surface entry for seismic exploration will be allowed from October 16 to March 31. "b. Exploration and development activities will be restricted or prohibited between April 1 and October 15 within the core caribou summer habitat, except that maintenance and operation of production wells will be allowed year-round. Permanent roads, or facilities other than production wells, will also be restricted or prohibited within this area. Facilities within the core caribou summer habitat that required year-round access must be located in forested areas, where practical. *Exception - ADF&G "c. Pipelines must be buried within the core caribou summer habitat.*Exception . ADF&G. 26. For projects in close proximity to areas frequented by bears, lessees are encouraged to prepare and implement bear interaction plans to minimize conflicts between bears and humans. These plans could include measures to: (a) minimize attraction of bears to drill sites; (b) organize layout of buildings and work areas to minimize humanlbear interactions; (c) warn personnel of bears near or on drill sites and the proper procedures to take; (d) if authorized, deter bears from the drill site; (e) provide contingencies in the event bears do not [eave the site; (f) discuss proper storage and disposal of materials that may be toxic to bears; and (g) provide a systematic record of bears on site and in the immediate area. 27. Lessees must disclose any requests for exceptions to these mitigation measures and advisories in their plans of operation and applicable permit applications. 28. Plans of operation submitted for review and approval must describe the lessee's efforts to communicate with local communities, and interested local community groups, if any, in the development of such plans. . . 29. Lessees must submit a plan of operations to the state for approval as required by 11 AAC 83.158. Where surfacr activities are proposed on non state-owned land, lessees must submit a copy of the plan of operations to the private. surface owner. Plans of operation must describe the lessee's efforts to minimize impacts on residential areas and privately-owned surface lands. 30. Prior to commencement of any activities, lessees shall confirm the locations of den sites that are actually occupied in the season of the proposed work with the Division of Wildlife Conservation, DF&G, based on data provided by DF&G. Exploration and development activities, begun between November 15 and March 31, will not be conducted within one-half mile of occupied brown bear dens, unless alternative mitigation measures are approved by DF&G. Occupied dens not previously identified by DF&G that are encountered in the field must be reported to the Division of Wildlife Conservation, DF&G, within 24 hours. Mobile activities shall avoid such dens by one-half mile unless alternative mitigation measures are approved by DO&G with concurrence from DF&G. Non-mobile facilities will not be required to be relocated. 31. To avoid possible adverse impacts to Kenai Peninsula brown bears, exploration activities will be allowed only between November 15 and March 31 within the brown bear movement corridors around Skilak Lake, Tustumena Lake, along the upper Anchor River drainage, and at the head of Kachemak Bay. LESSEE ADVISORIES 1. The use of explosives for seismic activities with a velocity of greater than 3,000 feet per second in marine waters is prohibited. 2. Lessees must include in their seismic permit applications a plan for notifying the public of their activities. 3. Forest clearing for seismic activity must be approved by the Director, after consultation with DOF and ADF&G. 4. Aircraft flying over the Goose Bay SGR and the Palmer Hay Flats SGR, the primary waterfowl habitat within the Susitna Flats SGR and Trading Bay SGR, and the core Tu(e goose and trumpeter swan molting and nesting corridors ¡ Trading Bay SGR and Redoubt Bay CHA must maintain a minimum altitude of 1,500 feet above ground level or horizontal distance of one mile from April 1 to October 31. Human safety will take precedence over this provision. 5. a. Because of the state's interest in encouraging clean air, lessees are encouraged to adopt conservation measures to reduce hydrocarbon emissions. b. The state recognizes that in the long run sources of energy other than oil and gas will be needed. Lessee participation in conducting research on alternative energy sources is appreciated. 6. In populated areas where there is no local planning and zoning, ADNR may require in approval of plans of operation that permanent structures be designed to be compatible with the aesthetics of the surrounding area. 7. To ensure sufficient vegetative cover in Kenai Peninsula brown bear feeding concentration areas, lessees may be required to locate exploration and development facilities beyond the 500 foot buffer along anadromous fish bearing streams. This requirement will be considered during review of site-specific plans of operations, in consultation with DF&G. 8. If data indicate that brown bear movement will be hindered by development and production activities, lessees may be required to locate facilities outside of the Kenai Peninsula brown bear movement corridors around Skilak Lake, Tustumena Lake, along the upper Anchor River drainage, and at the head of Kachemak Bay. This requirement will be considered during review of site-specific plans of operations, in consultation with DF&G. T2N ~ R12W TlN ~ R14W I I I I + I I I I I I T2N ~ R13W ::.EE DETAIL "G" FOR TRACTS 45A A5AH T1N ~ R13W I I I I I MARATHON OIL COMPA1'\/Y -~--- NINILCHIK GNIT 4 KEN PE:\'INSGLA BOROUGH, AK SEE DETAIL "C" FOR TRACTS 100-140 TlN ~R12W EXHIBIT "8" ~TRACT NUMBER TåTE OF ALASKA LANDS EDERAL LANDS R13W IVRSITY OF ALASKA LANDS 22 SEE DETAIL "E" FOR TRACTS 164-186 IRI LANDS 1S ~ R14W PATENTED FEE LMTIJS l' ~ ð ~ 4.,~ r Q------- . (ii) @ NINILCHIK UNIT - DETAIL iQAiQ (TRACTS 46 -70) . . @ @ @ G @~G§J ~ @ @ NINILCHIK UNIT - DETAIL "8" (1'RACTS 80 -98) (ûJ Q ~ @ 0) Q Q ® @ @ o ~ o @ ~ Q @ (@ ~ @ I @ NINILCHIK UNIT - DETAIL "D" (TRACTS 148-156) @ ~ ~ Q @ @ ~ NfNfJ.CHIK UNIT - OF-TAn, "F," (TRArTS: 164 -1~6) 44T 44J 44K @ 44L @ @ ~TINILCHIK UNIT... DETAIL "F" (TRACTS 44A... 44AL) . . 45AG - 45AF 45AE 45AC ~ ~ 45AB 45C 45R 458 45T 45U 45X 45D 45Q 45W 45E 45P 45N 45F 450 ~G ~y 45H 451 / @ 45J NINILCffiK UNIT... DETAIL "G" (TRACTS 45A - 45AH) . 3 . ~ NINILCIDK UNIT - DETAIL "R" (TRACTS 33A - 33F) . . WORKING INTEREST SUMMARY NINILCHIK UNIT AREA KENAI PENINSULA BOROUGH, ALASKA The following constitutes a summary of working interest ownership in the Ninilchik Unit. WI OWNER NET ACRES UNIT % NOTES Marathon Oil Company Union Oil Company of California Uncommitted Mineral Owners Aurora Gas, LLC 14358.63997 9572.42665 1146.16058 729.56310 55.639000% 37.092666% 4.441314% 2.827020% Unit Total 25806.79030 100.000000% Ninilchík Unit Exhibit Reintegrated Falls Creek updated 2-5-05.xls . . UNIT SUMMARY PAGE NINILCHIK UNIT KENAI PENINSULA BOROUGH, ALASKA The following summary page recapitulates unit acreage in the Ninilchik Unit by ownership class. LAND OWNERSHIP NET ACRES PERCENTAGE OF UNIT Federal Lands State of Alaska Lands University of Alaska Lands Cook Inlet Region, Inc. Lands Patented Fee Lands 232.90000 19995.86500 661.35000 1519.65000 3397.02530 0.902476% 77.482960% 2.562698% 5.888566% 13.163300% Unit Total 25806.79030 100.000000% Ninilchik Unit Exhibit Reintegrated Falls Creek updated 2-5-05.xls EXHIBIT "A" NINILCHIK UNIT AREA, KENAI PENINSULA BOROUGH, ALASKA Tract No. Description of lands Number of Serial Number & Basic Royalty & Ownership Percentage Overriding Royalty & Percentage Working Interest & Notes Acres Expiration Date of Percentage lease FEDERAL LANDS 14 T1N-R13W 2.5000 A-024399 U.S.A. 12.5% Charles Delaney Ealand, II 0.35% Marathon 60% Section 14: That part of 12/1/68 Ann Edwards Ealand 0.35% Union 40% lot 1 lying within the Mary Lynn Moellering 0.05% southeast corner of the Dorothy Anne Dedrick 0.1 % SE/4NE/4 (est. 2.5 Dustin Delaney Ealand 0.05% acres) Alina Mendez 0.05% Kevin MacKintosh 0.05% . Chevron USA, Inc. 6.5% 15 T1N-R13W 91.2100 A-024399 U.S.A. 12.5% Charles Delaney Ealand, II 0.35% Marathon 60% Section 12: That part of 12/1/68 Ann Edwards Ealand 0.35% Union 40% lot 1 lying within the Mary Lynn Moellering 0.05% S/2NE/4 and lots 2 Dorothy Anne Dedrick 0.1 % and 3 Dustin Delaney Ealand 0.05% Alina Mendez 0.05% Kevin MacKintosh 0.05% Chevron USA. Inc. 6.5% 15A T1N-13W 10.2300 A-024399 U.S.A. 12.5% Charles Delaney Ealand, II 0.35% Marathon 60% That part of lot 1 lying 12/1/68 Ann Edwards Ealand 0.35% Union 40% in the NE/4NE/4 a/d/a Mary Lynn Moellering 0.05% lot 1, except that part Dorothy Anne Dedrick 0.1 % lying in the S/2NE/4 Dustin Delaney Ealand 0.05% Alina Mendez 0.05% Kevin MacKintosh 0.05% Chevron USA. Inc. 6.5% 16 T1N-R13W 8.9600 A-024399 U.S.A. 12.5% Charles Delaney Ealand. II 0.35% Marathon 60% Section 23: lot 5 (4.96 12/1/67 Ann Edwards Ealand 0.35% Union 40% . acres) and that part of Mary Lynn Moellering 0.05% lot 1 lying in the W/2 Dorothy Anne Dedrick 0.1 % (estimated at 4.0 acres) Dustin Delaney Ealand 0.05% Alina Mendez 0.05% Kevin MacKintosh 0.05% Chevron USA, Inc. 6.5% 17 T 1N - R 13W 120.0000 Section 34: NW/4SW/4 & S/2NW/4 U.S.A. Uncommitted FEDERAL TOTAL: 232.9000 Marathon = Marathon Oil Company Union = Union Oil Company of California Aurora = Aurora Gas, L.L.C. Page 1 of 71 Ninilchik Unit Exhibit Reintegrated Falls Creek updated 2-S-0S.xls EXHIBIT "A" NINILCHIK UNIT AREA, KENAI PENINSULA BOROUGH, ALASKA Tract No. Description of Lands Number of Serial Number & Basic Royalty & Ownership Percentage Overriding Royalty & Percentage Working Interest & Notes Acres Expiration Date of Percentage Lease STATE OF ALASKA 2 T 2N - R 12W 3518.4500 ADL #384314 State of Alaska 12.5% Forest Oil Corporation 1.5% Marathon 60% Section 19: All 12/31/01 PLC, LLC 2% Union 40% Section 20: MH2, LLC 0.46667% Unsurveyed, all tide William F. Webb 1.33333% and submerged lands Hea Sun Kim 0.1% Section: 21: NW/4NE/4 J. Ann Craig 0.1 % & N/2NE/4NE/4SE/4 & NE/4NW/4 Section 28: SE/4 Section 29: All tide and submerged lands Section: 30: All Section 31: Fractional all Section 31 : All tide and submerged lands Section 32: All tide and submerged lands Section 33: NE/4 & SW /4SE/4 & E/2W /2 & NW/4NW/4 Section 32: NE/4SW/4 & SE/4 & GLO Lot 2 187 T 2N - R 12W 339.8600 ADL #389181 State of Alaska 12.5% Marathon 60% ( Section 20: fractional 1/31/07 Union 40% GLO Lots 1-4 inclusive & SE/4SE/4 Section 21: W/2NW/4 Section 29: Fractional NE/4NE/4 & GLO Lot 1 Page 2 of 71 Ninilchik Unit Exhibit Reintegrated Falls Creek updated 2-5-05.xls Marathon = Marathon Oil Company Union = Union Oil Company of California Aurora = Aurora Gas, L.L.C. Tract No. Description of Lands Number of Acres STATE OF ALASKA (CONTINUED) T 2N - R 13W 320.0000 Section 36: S/2 12 T 1 N - R 12W 59.9600 Section 5: Lot 3 & E/2SE/4NW 14 T 1 N - R 12W 40.0000 Section 7: SE/4NW/4 T1 N-R 12W 3095.5500 Section 6: That part of the E/2 lying below the line of mean high tide (estimated at 30.56 acres) T 1 N- R 13W Section 1: NW 14 and W 12NE/4 and NE/4NE/4 and W 12SW 14 and NE/4SW/4 Section 2: E/2 Section 10:SE/4 Section 11: All Section 12:AII tide and submerged land, less and except the N/2NE/4 and NE/4NW/4 Section 14: Fractional Section 15: All tide and 13 3 C"llhrnnrnrU"~ I..."nn EXHIBIT "A" NINILCHIK UNIT AREA, KENAI PENINSULA BOROUGH, ALASKA Serial Number & Basic Royalty & Ownership Percentage Overriding Royalty & Percentage Expiration Date of Lease ADL #384318 12/31/01 ADL #390363 9/30/2010 ADL #390363 9/30/2010 ADL-389737 1/27/60 Page 3 of 71 Ninilchik Unit Exhibit Reintegrated Falls Creek updated 2-5-05.xls State of Alaska 12.5% State of Alaska State of Alaska State of Alaska 5% during royalty Chevron USA, Inc. 6.5% x 100% reduction & 12.5% after royalty reduction (as to that part of the lease in the Falls Creek Field) and 12.5% as to that part of the lease lying outside the Falls Creek Field Working Interest & Notes Percentage Marathon 30% Union 20% Aurora 50% Marathon 60% Union 40% Marathon 60% Union 40% Marathon 60% Union 40% Marathon = Marathon Oil Company Union = Union Oil Company of California Aurora = Aurora Gas, L.L.C. EXHIBIT "A" NINILCHIK UNIT AREA, KENAI PENINSULA BOROUGH, ALASKA Tract No. Description of Lands Number of Serial Number & Basic Royalty & Ownership Percentage Overriding Royalty & Percentage Working Interest & Notes Acres Expiration Date of Percentage Lease STATE OF ALASKA (CONTINUED) 188 T1N, R 13W, S.M. 564.45 ADL-590 State of Alaska 5% during royalty Chevron USA, Inc. 6.5% x 50% Marathon 60% Sec. 1: SE/4NE/4 & 1/27/60 reduction & 12.5% after royalty Union 40% SE/4 & SE/4SW /4 reduction Sec. 12: NE/4NW /4 & N/2NE/4, except that part lying above the line of mean high tide T1N, R 12W, S.M. Sec. 6: W /2 except that part lying above the line of mean high tide 4 T1N-R13W 2157.9900 ADL #384305 State of Alaska 12.5% Marathon 60% Section 2: W /2 12/31/01 Union 40% Section 3: SE/4 Section 10: N/2 & SvV/4 Section 22: Tide and submerged land Section 23: All tide and submerged land Section 27: Lot 5 and all tide and submerged land Section 34: Lots 2,3,4, 6, 6, 7 & 8 and all tide ( and submerged land 5 T 1 N - R 13W 480.0000 ADL #384306 State of Alaska 12.5% Marathon 30% Section 16: E/2 & SW /4 12/31/01 Union 20% Aurora 50% Marathon = Marathon Oil Company Union = Union Oil Company of California Aurora = Aurora Gas, L.L.C. Page 4 of 71 Ninilchik Unit Exhibit Reintegrated Falls Creek updated 2-5-05.xls Tract No. Description of Lands Number of Acres :> 10 11 STATE OF ALASKA (CONTINUED) T 1N - R 13W 4607.0200 Section 20: E/2 & SW/4 Section 21: All Section 28: All Section 29: All Section 30: E/2 & SW /4 Section: 31 : All Section 32: All Section33: All tide and submerged land EXHIBIT "A" NINILCHIK UNIT AREA, KENAI PENINSULA BOROUGH, ALASKA Serial Number & Basic Royalty & Ownership Percentáge Overriding Royalty & Percentage Expiration Date of Lease Working Interest & Notes Percentage ADL #389180 1/31/07 State of Alaska 12.5% Marathon 60% Union 40% T 1 N - R 14W Section 160.0000 ADL #390085 State of Alaska Marathon 60% 36: SE/4 11/30/09 Union 40% T1S-R13W 852.0000 ADL #359242 State of Alaska 12.5% James W. White 3.5% Marathon 60% Section 4: W/2SW/4 12/01/01 James L. Thurman 3% Union 40% Section 5: All tide and Tucson, Ltd. 3% submerged land V. Paul Gavora 3% Section 6: All tide and submerged land Section 7: All tide and submerged land Section 9: SW/4NW/4 T1S-R13W 120.0000 ADL #388226 State of Alaska 12.5% Aurora Gas, LLC 3% Marathon 60% Section 7: SE/4SE/4 1/31/04 Union 40% Section 8: E/2SE/4 Marathon = Marathon Oil Company Union = Union Oil Company of California Aurora = Aurora Gas, L.L.C. Page 5 of 71 Ninilchik Unit Exhibit Reintegrated Falls Creek updated 2-5-05.xls Tract No. Description of Lands Number of Acres 8 STATE OF ALASKA (CONTINUED) T 1S - R 14W 3507.8400 Section 1 :AII Section 2: All Section 11: All Section 12: SE/4SE/4 & All tide and submerged land Section 13: E/2 & All tide and submerged land Section 14: All tide and SI IhmAroArj I~nrl T 1S - R 14W 160.0000 Section 15:SE/4 T 1S - R 14W 12.2420 Section 13: State of Alaska Highway Project Number F-021-1(3), Parcel Number 0118, as more particularly described by metes and bounds in a warranty deed dated 6/26/64 from Leonard Lee Catledge et ux to the State of Alaska, recorded in book 33, page 226 of the Homer Recording District 9 185 EXHIBIT "A" NINILCHIK UNIT AREA, KENAI PENINSULA BOROUGH, ALASKA Serial Number & Basic Royalty & Ownership Percentage Overriding Royalty & Percentage Expiration Date of Lease ADL #384372 12/31/01 ADL #390105 11/30/09 ADL #390105 11/30/09 Page 6 of 71 Ninilchik Unit Exhibit Reintegrated Falls Creek updated 2-5-05.xls State of Alaska 12.5% State of Alaska 12.5% State of Alaska 12.5% Working Interest & Notes Percentage Marathon 60% Union 40% Marathon 60% Union 40% Marathon 60% Union 40% ( Marathon = Marathon Oil Company Union = Union Oil Company of California Aurora = Aurora Gas, L.L.C. Tract No. Description of Lands Number of Acres 186 STATE OF ALASKA (CONTINUED) T 1S ~ R 14W 0.5030 Section 13: A 0.503 acre tract of land being State of Alaska Highway Project Number F-021-1(3), Parcel Number 0118-A, as more particularly described by metes and bounds in a warranty deed dated 7/28/64 from Calvin C. Hartman et ux to the State of Alaska, recorded in book 34, page 121 of the Homer Recording District ~LASKA TOTAL: 19995.8650 EXHIBIT "A" NINILCHIK UNIT AREA, KENAI PENINSULA BOROUGH, ALASKA Serial Number & Basic Royalty & Ownership Percentage Overriding Royalty & Percentage Expiration Date of Lease ADL #390105 11/30/09 State of Alaska 12.5% Page 7 of 71 Ninilchik Unit Exhibit Reintegrated Falls Creek updated 2-5-05.xls Working Interest & Notes Percentage Marathon 60% Union 40% Marathon = Marathon Oil Company Union = Union Oil Company of California Aurora = Aurora Gas, L.L.C. EXHIBIT "A" NINILCHIK UNIT AREA, KENAI PENINSULA BOROUGH, ALASKA Tract No. Description of lands Number of Serial Number & Basic Royalty & Ownership Percentage Overriding Royalty & Percentage Working Interest & Notes Acres Expiration Date of Percentage Lease UNIVERSITY OF ALASKA LANDS 18 T 2N - R 12W 400.0000 Tract #2 University of Alaska 12.5% Marathon 60% Section 21: NE/4NE/4 12/31/07 Union 40% Section 28: SW/4 Section 29: SE/4SE/4 Section 32: S/2NE/4 & NE/4NE/4 & SE/4SW/4 19 T 1 N - R 12W 40.0000 Tract #2 University of Alaska 12.5% Marathon 60% Section 6: SE/4NE/4 12/31/07 Union 40% 20 T 1N - R 13W 150.4400 #2-04 University of Alaska 12.5% Marathon 60% Section 33: lot 1 6/30/02 Union 40% Section 34: E/2SW/4 and SW /4SW /4 21 T1S-R13W 30.9100 Tract #2 University of Alaska 12.5% Marathon 60% Section 7: lot 4 12/31/07 Union 40% 22 T 1 S - R 13W 40.0000 #2-05 University of Alaska 12.5% Marathon 60% Section 8: NE/4NE/4 6/30/02 Union 40% JNIVERSITY TOTAL: 661.3500 Marathon;;: Marathon Oil Company Union = Union Oil Company of California Aurora;;: Aurora Gas, L.L.C. Page 8 of 71 Ninilchik Unit Exhibit Reintegrated Falls Creek updated 2-5-05.xls EXHIBIT "A" NINILCHIK UNIT AREA, KENAI PENINSULA BOROUGH, ALASKA Tract No. Description of Lands Number of Serial Number & Basic Royalty & Ownership Percentage Overriding Royalty & Percentage Working Interest & Notes Acres Expiration Date of Percentage Lease COOK INLET REGION INCORPORATED (CIRI) LANDS 23 T2N-R12W 55.0000 C-61596 Cook Inlet Region, Inc. 100% x 20% Marathon 60% Section 21: That part 10/19/2006 Union 40% of the S/2NE/4NE/4SE/4 & S/2NE/4SE/4 & SE/4SE/4 lying southeasterly of and excluding the Sterling Hiahwav 23A T 2N - R 12W 220.0000 Cook Inlet Region. Inc. 100% Uncommitted Section 21: S/2NE/4 & (Note - Patent to CIRI in process) SE/4NW/4 & NE/4SW/4 & NW /4SE/4 & W /2E/2SE/4 & SE/4NE/4SE/4 &S/2NE/4NE/4SE/4 lying northwesterly of and including the Sterling Highway (estimated at 220 ¡:¡r.rA~ \ 24 T 2N - R 12W 32.6100 C-061505 Cook Inlet Region, Inc. 100% x 20% Marathon 60% Section 29: Lot 4 9/22/2003 Union 40% 25 T 2N - R 12W 240.0000 C-061510 Cook Inlet Region, Inc. 100% x 20% Marathon 60% Section 33: W/2SW/4 & 6/20/04 Union 40% SW/4NW/4 & N/2SE/4 & SE/4SE/4 26 T1N-R12W 60.0000 C-060385 6/1/05 Cook Inlet Region, Inc. 100% x 20% Marathon 60% Section 5: SW/4NW/4 Union 40% and W /2SE/4NW /4 27 T1N-R13W 1.8800 C-061505 Cook Inlet Region, Inc. 100% x 20% Marathon 60% Section 22: Lot 1 9/22/2003 Union 40% 28 T1N-R13W 50.2300 C-061505 Cook Inlet Region, Inc. 100% x 20% Marathon 60% Section 27: Lots 8,9, 9/22/2003 Union 40% 11,12,13,14,15,16, 17,and18 Marathon;::: Marathon Oil Company Union = Union Oil Company of California Aurora;::: Aurora Gas, L.L.C. Page 9 of 71 Ninilchik Unit Exhibit Reintegrated Falls Creek updated 2-5-05.xls Serial Number & Expiration Date of Lease COOK INLET REGION INCORPORATED (CIRI) LANDS (continued) T 1N - R 13W 1.9000 C-061505 Cook Inlet Region, Inc. 100% x20% Section 33: 9/22/2003 Government Lot 5 T1S-R13W Section 4: SW/4NW/4 Section 5: S/2SE/4 Section 7: Lots 1,2,3, and SW /4NE/4 Section 8: SE/4NW/4 & NW/4NE/4 & S/2NE/4 & NE/4SW/4 & S/2SW /4 & W /2SE/4 T1S-R14W Section 1?: I ot 1 T1S-R13W Section 9: NW /4NW /4 Section 18: Lots 1, 2, 3, NW /4SE/4NW /4 and N/2NW/4NE/4 Tract No. Description of Lands 29 30 31 C:IRI TOTAL: Number of Acres 694.7800 163.2500 1519.6500 EXHIBIT "A" NINILCHIK UNIT AREA, KENAI PENINSULA BOROUGH, ALASKA Basic Royalty & Ownership Percentage Overriding Royalty & Percentage C-061505 9/22/2003 Cook Inlet Region, Inc. 100% x 20% C-060385 6/1/05 Cook Inlet Region, Inc. 100% x 20% Page 10 of 71 Ninilchik Unit Exhibit Reintegrated Falls Creek updated 2-5-05.xls Working Interest & Notes Percentage Marathon 60% Union 40% Marathon 60% Union 40% f Marathon 60% Union 40% Marathon = Marathon Oil Company Union = Union Oil Company of California Aurora = Aurora Gas, L.L.C. EXHIBIT "A" NINILCHIK UNIT AREA, KENAI PENINSULA BOROUGH, ALASKA Tract No. Description of Lands Number of Serial Number & Basic Royalty & Ownership Percentage Overriding Royalty Working Interest Notes Acres Expiration Date of & Percentage & Percentage Lease PATENTED FEE LANDS 32 T 2N - R 12W 120.0000 6/5/2006 James B. Borden & Tammy C. Borden Aurora Gas, LLC Section 21: NW/4SW/4 100% x 12.5% (Subject & S/2SW/4 to non-participating royalty owned by David Keith Crosby. William Donald Reeder. Stanley & Donnis Thompson and Basil Bolstridge) 33A-1 T 2N - R 12W 14.2600 7/1/11 Stephen Wayne Gordon 1/5 Marathon 60% Section 21: Lots 3-5, 9/1/11 Hilda C. Unfried 1/5 Union 40% Block 1 & Lots 2,3.5,7 8/1/11 Rebekah Chapek 1/5 & 8 of Block 2 and all 9/1/11 Lillian Nuzzolese 1/5 the dedicated streets of (subject to nonparticipating royalties - Clam Gulch Acres same owners as Tract #32) Subdivision, plat #86- 81 and the unsubdivided remainder of the SW/4SE/4Iying Southeast of the Sterling Highway Marshall K. Coryell 1/5 Uncommitted (subject to nonparticipating royalties - same owners as Tract #32) 33A T 2N - R 12W 2.0000 7/1/11 Jeff L. & Hilda G. Wells & Lafton 4/5 Marathon 60% Section 21: Lots 1 & 2. 9/1/11 Wells Union 40% Block 1 Clam Gulch 8/1/11 (subject to nonparticipating royalties - Acres Subdivision, plat 9/1/11 same owners as Tract #32) #86-81 Jeff L. & Hilda G. Wells & Lafton 1/5 Uncommitted Wells (subject to nonparticipating royalties - same owners as Tract #32) Page 10 of 71 Ninilchik Unit Exhibit Reintegrated Falls Creek updated 2-5-05.xls Marathon = Marathon Oil Company Union = Union Oil Company of California EXHIBIT "A" NINILCHIK UNIT AREA, KENAI PENINSULA BOROUGH, ALASKA iract No. Description of Lands Number of Serial Number & Basic Royalty & Ownership Percentage Overriding Royalty Working Interest Notes Acres Expiration Date of & Percentage & Percentage Lease PATENTED FEE LANDS 13B T 2N - R 12W 5.8900 6/5/2006 James B. Borden & Tammy C. Borden Aurora Gas, LLC Section 21: Lots 6 & 7, 100% x 12.5% (subject Block 1 & Lots 11 & 12, to nonparticipating royalties - same Block 2 of Clam Gulch owners as Tract #32) Acres Subdivision, plat #86-81 ( 13C T 2N - R 12W 3.6900 Kelly Guy Baker Uncommitted Section 21: Lots 6, 9, (subject to nonparticipating royalties - 10, Block 2 of Clam same owners as Tract #32) Gulch Acres Subdivision, plat #86- 81 .30 T 2N - R 12W 7.8400 Nell Kelly Uncommitted Section 21: The (subject to nonparticipating royalties - minerals underlying the same owners as Tract #32) right of way of the Sterling Highway as it crosses the SW /4SE/4 (est. 7.84 acres) ¡3E T 2N - R 12W 1.0000 Delphine L. Chasing-Hawk Uncommitted Section 21: Lot 1, (subject to nonparticipating royalties - Block 2 of Clam Gulch same owners as Tract #32) Acres Subdivision, plat ( #86-81 3F T 2N - R 12W 1 .1 000 Robert E. Link & Deborah A. Link Uncommitted Section 21: Lot 4, (H&W) Block 2 of Clam Gulch (subject to nonparticipating royalties - Acres Subdivision, plat same owners as Tract #32) #86-81 Page 11 of 71 Ninilchik Unit Exhibit Reintegrated Falls Creek updated 2-5-05.xls Marathon = Marathon Oil Company Union = Union Oil Company of California rract No. Description of Lands Number of Acres PATENTED FEE LANDS 34 T 2N - R 12W 158.0000 Section 28: N/2NW/4 & SW /4NW /4 (less the 2 acre Harold A. Pederson Tract in the SE/c of SW/4NW/4) Section 29: SE/4NE/4 (excluded tract is Tract #36 of this exhibit) T 2N - R 12W 40.0000 Section 28: Tracts A & B of plat #79-4 and Lots B-1 & B-2 of Plat #81-118 a/d/a SE/4NW /4 T 2N - R 12W 2.0000 Section 28: A tract beginning at the SE/c of the SW/4NW/4; TH. North 500'; TH. West 175'; TH. South 500'; TH. East 175' to POB. T 2N - R 12W 160.0000 Section 28: NE/4 T 2N - R 12W 147.4500 Section 29: Lots 2 & 3 & N/2SE/4 less a tract in the Northeastern corner of the N/2SE/4 owned by Vernon Andrews and Leonard Keener (excluded tract is Tract #39 of this exhibit} ~5 16 17 ~8 EXHIBI r "A" NINILCHIK UNIT AREA, KENAI PENINSULA BOROUGH, ALASKA Serial Number & Expiration Date of Lease 8/1/08 1/10/08 12/1/2011 1/9/2008 Page 12 of 71 Ninilchik Unit Exhibit Reintegrated Falls Creek updated 2-5-05.xls Basic Royalty & Ownership Percentage Overriding Royalty Working Interest Notes & Percentage & Percentage JWYW, LLC 5/6 x 12.5% Stephen Rex & Marilyn Lange 1/6 x 12.5% Leonard & Evelyn D. Keener 100% x 12.5% Harold A. Pederson Rodney & Vicki Andrews 100% x 12.5% Mary R. Hawkins 75% x 12.5% Charles F. Hawkins 5% x 12.5% Richard B. Hawkins 5% x 12.5% Marguerite Hawkins 5% James Hawkins 5% Ian Hawkins, deceased 5% Marathon 60% Union 40% Aurora Gas, LLC Marathon 60% Union 40% Aurora Gas, LLC Marathon 60% Union 40% Uncommitted Marathon = Marathon Oil Company Union = Union Oil Company of California EXHIBIT "A" NINllCHIK UNIT AREA, KENAI PENINSULA BOROUGH, ALASKA Tract No. Description of Lands Number of Serial Number & Basic Royalty & Ownership Percentage Overriding Royalty Working Interest Notes Acres Expiration Date of & Percentage & Percentage Lease PATENTED FEE LANDS 39 T 2N - R 12W 3.6731 Leonard & Evelyn D. Keener 50% x Aurora Gas, LLC Section 29: A tract in 12.5% the Northeastern Rodney & Vicki Andrews 50% x 12.5% Corner of the N/2SE/4 lying North of the Sterling Highway 40 T 2N - R 12W 3.91 00 1/10/2008 Per Eric Osmar & Frances L. Osmar Marathon 60% Section29: Block 7 of 50% x 12.5% Union 40% Clam Gulch Park, Plat #75-69 Theodore L. & Ann C. Morris 25% Uncommitted Thomas W. Patmor 25% 41 T 2N - R 12W 31 .1100 1/10/2008 Per Eric Osmar & Frances L. Osmar Marathon 60% Section 32: Tracts 1-6 50% x 12.5% Union 40% of Tract E and the unsubdivided remainder of Tract E of T.L. Morris Subdivision of Tract E of Clam Gulch Subdivision, Plat #81-06 7/1/2011 Virgil Robbins 50% Marathon 60% ( Union 40% ~2 T 2N - R 12W 22.0000 1/10/2008 Per Eric Osmar & Frances L. Osmar Marathon 60% Section 32: The 100% X 12.5% Union 40% SE/4NW /4 lying Southeast of Sterling Highway, excluding the Clam Gulch Subdivision, Morris 1979 Addition Plat #79- 192 Page 13 of 71 Ninilchik Unit Exhibit Reintegrated Falls Creek updated 2-5-05.xls Marathon = Marathon Oil Company Union = Union Oil Company of CalifornÎa EXHIBIT "A" NINILCHIK UNIT AREA, KENAI PENINSULA BOROUGH, ALASKA Tract No. Description of Lands Number of Serial Number & Basic Royalty & Ownership Percentage Overriding Royalty Working Interest Notes Acres Expiration Date of & Percentage & Percentage Lease PATENTED FEE LANDS 42A T 2N - R 12W 2.7940 Ronald E. Russell 100% Uncommitted Section 32: Tract G of Clam Gulch Subdivision Osmar 1981 Addition, Plat #81- 51 43 T 2N - R 12W 2.1800 Shirley Ann Grow & Richard James Uncommitted Section 32: Lot 2, Clam Edelman 100% Gulch Subdivision, Plat #90-18 44A-1 T 2N - R 12W 1.0000 8/1/11 William Donald Reeder 50% Marathon 60% Section 32: Lots 10 & 7/1/11 Donald M. & Susan R. Coates 50% Union 40% 11, Thomack Subdivision, Plat #K- 1575, in so far as they lie within Tract "A" of former Plat K-509 (est. 1 acre) 44A-2 T 2N - R 12W 0.5000 1/1 0/2008 Per Eric Osmar 50% Marathon 60% Section 32: Lots 10 & 7/1/11 Donald M. & Susan R. Coates 50% Union 40% 11, Thomack Subdivision, Plat #K- 1575, in so far as they lie outside Tract "A" of former Plat K-509 (est. 0.5 acre) ~4B-1 T 2N - R 12W 1 .0000 8/1/2011 William Donald Reeder 50% Marathon 60% Section 32: Lot 12, 1/29/13 Walter L. Wilson 50% Union 40% Thomack Subdivision, Plat #K-1575, in so far as it lies within Tract "A" of former plat #K- 509 (est. 1.0 acre) Page 14 of 71 Ninilchik Unit Exhibit Reintegrated Falls Creek updated 2-5-05.xls Marathon := Marathon Oil Company Union := Union Oil Company of California EXHIBIT "A" NINILCHIK UNIT AREA, KENAI PENINSULA BOROUGH, ALASKA Tract No. Description of Lands Number of Serial Number & Basic Royalty & Ownership Percentage Overriding Royalty Working Interest Notes Acres Expiration Date of & Percentage & Percentage Lease PATENTED FEE LANDS 448-2 T 2N - R 12W 0.4300 1/10/2008 Per Eric Osmar 50% Marathon 60% Section 32: Lot 12, 1/29/13 Walter L. Wilson 50% Union 40% Thomack Subdivision, Plat #K-1575, in so far as it lies outside Tract "A" of former plat #K- 509 (est. 0.43 acre) 44C-1 T 2N - R 12W 0.7150 8/1/2011 William Donald Reeder 50% Marathon 60% Section 32: Lot 13, Union 40% Thomack Subdivision, Plat #K-1575 in so far as it lies within Tract "A" of former plat #K- 509 (est. 0.715 acre) John T. Givens 50% Uncommitted 44C-2 T 2N - R 12W 0.7150 1/1 0/2008 Per Eric Osmar 50% Marathon 60% Section 32: Lot 13, Union 40% Thomack Subdivision, Plat #K-1575 in so far as it lies outside Tract "A" of former plat #K- 509 (est. 0.715 acre) John T. Givens 50% Uncommitted 440-1 T 2N - R 12W 0.1000 8/1/11 William Donald Reeder 50% Marathon 60% Section 32: Lot 14, 7/1/11 Robert C. & Rosemary Johnson 50% Union 40% Thomack Subdivision, Plat #K-1575 in so far as it lies within Tract "A" of former plat #K- 509 (est. 0.1 acre) Page 15 of 71 Ninilchik Unit Exhibit Reintegrated Falls Creek updated 2-5-05.xls Marathon = Marathon Oil Company Union = Union Oil Company of California EXHIBIT "A" NINILCHIK UNIT AREA, KENAI PENINSULA BOROUGH, ALASKA Tract No. Description of Lands Number of Serial Number & Basic Royalty & Ownership Percentage Overriding Royalty Working Interest Notes Acres Expiration Date of & Percentage & Percentage Lease PATENTED FEE LANDS 440-2 T 2N - R 12W 1.3300 1/10/08 Per Eric Osmar 50% Marathon 60% Section 32: Lot 14, 7/1/11 Robert C. & Rosemary Johnson 50% Union 40% Thomack Subdivision, Plat #K-1575 in so far as it lies outside Tract "A" of former plat #K- 509 (est. 1.33 acre) 44E T 2N - R 12W 1 .4200 1/10/2008 Per Eric Osmar & Frances L. Osmar Marathon 60% Section 32: Lot15, 50% x 12.5% Union 40% Thomack Subdivision, Plat #K-1575 Arlyn H. & June C. Thomack 50% Uncommitted 44F T 2N - R 12W 1 .4200 1/10/2008 Per Eric Osmar & Frances L. Osmar Marathon 60% Section 32: Lot 16, 50% x 12.5% Union 40% Thomack Subdivision, Plat #K-1575 7/1/2011 Rose Moorefield 50% Marathon 60% Union 40% ~4G T 2N - R 12W 2.5300 1/10/2008 Per Eric Osmar & Frances L. Osmar Marathon 60% Section 32:Lot C-1, 50% x 12.5% Union 40% Thomack Subdivision, Plat #K-1575 & Lot 1, Clam Gulch Subdivision, Conley 1977 Addition & also Lot 1 of Plat #78-43 Dolores C. Sage 50% Uncommitted t4H T2N-R12W 1.3200 Jennifer Abbott 100% Uncommitted Section 32: Lot 2 of Clam Gulch Subdivision, Conley 1977 Addition, plat #78- 43 Page 16 of 71 Ninilchik Unit Exhibit Reintegrated Falls Creek updated 2-5-05.xls Marathon::: Marathon Oil Company Union::: Union Oil Company of California EXHIBIr "A" NINILCHIK UNIT AREA, KENAI PENINSULA BOROUGH, ALASKA fract No. Description of Lands Number of Serial Number & Basic Royalty & Ownership Percentage Overriding Royalty Working Interest Notes Acres Expiration Date of & Percentage & Percentage Lease PATENTED FEE LANDS 441 T 2N - R 12W 1.2600 7/1/2011 Timothy M. Lynch 100% Marathon 60% Section 32: Lot 3 of Union 40% Clam Gulch Subdivision, Conley 1977 Addition, plat #78- 43 44J T 2N - R 12W 1 .2300 Peter J. & Carolyn J. Crosby 100% Uncommitted Section 32: Lot 4 of Clam Gulch Subdivision, Conley 1977 Addition, plat #78- 43 ~4K T 2N - R 12W 1.2900 Brian J. Farney 100% Uncommitted Section 32: Lot 5 of Clam Gulch Subdivision, Conley 1977 Addition, plat #78- 43 gL T 2N - R 12W 5.2300 James R. Sabrowski 1/2 Marathon 60% Section 32: A 5.23 Leonard & Juanita Sabrowski Union 40% . acres tract described Revocable Living Trust 1/2 by metes and bounds and lying within Clam Gulch Subdivision (See ( legal description at end of report) ~4M T 2N - R 12W 0.3800 8/12/2011 David Keith Crosby 50% Marathon 60% Section 32: Tract F of Union 40% Clam Gulch Subdivision, Morris 1979 Addition, plat #79- 192 Theodore L. & Ann C. Morris 50% Uncommitted Page 17 of 71 Ninilchik Unit Exhibit Reintegrated Falls Creek updated 2-5-05.xls Marathon = Marathon Oil Company Union = Union Ojl Company of California EXHIBIT "A" NINILCHIK UNIT AREA, KENAI PENINSULA BOROUGH, ALASKA Tract No. Description of Lands Number of Serial Number & Basic Royalty & Ownership Percentage Overriding Royalty Working Interest Notes Acres Expiration Date of & Percentage & Percentage Lease PATENTED FEE LANDS 44N T 2N - R 12W 0.9200 Edna Fuller 50% Uncommitted Section 32: Lots 1-3 & 1-4 of Clam Gulch Subdivision, Morris 1979 Addition, Plat #79- 192 8/12/2011 David Keith Crosby 50% Marathon 60% Union 40% ~40 T 2N - R 12W 25.5260 1/10/2008 Per Eric Osmar & Frances Osmar Marathon 60% Section 32: Minerals 100% Union 40% underlying the roadbed of the Sterling Highway as it passes through Clam Gulch Subdivision & underlying dedicated streets in Clam Gulch Subdivision (est. 25.562 acres) ~4P T 2N - R 12W 0.5500 8/12/2011 David Keith Crosby 50% Marathon 60% Section 32: Lot 1-B-2 Union 40% of Clam Gulch Subdivision Morris 1979 Addition, plat #79- 192 Earl Carmichael 50% Uncommitted l4Q T2N-R12W 0.5200 8/12/2011 David Keith Crosby 50% Marathon 60% Section 32: Lot 1-B-1 Karl & Marina Lauterbach 25% Union 40% of Clam Gulch Subdivision, Morris 1979 Addition, Plat #79· 192 Theodore L. Morris & Ann C. Morris Uncommitted 25% Page 18 of 71 Ninilchik Unit Exhibit Reintegrated Falls Creek updated 2-5-05.xls Marathon = Marathon Oil Company Union = Union Oil Company of California EXHIBIT "A" NINILCHIK UNIT AREA, KENAI PENINSULA BOROUGH, ALASKA Tract No. Description of Lands Number of Serial Number & Basic Royalty & Ownership Percentage Overriding Royalty Working Interest Notes Acres Expiration Date of & Percentage & Percentage Lease PATENTED FEE LANDS 44R T 2N - R 12W 0.4000 Terry A. & Theresa A. Ellis 100% Uncommitted Section 32: Triangular portion of Lot 3, Clam Gulch Subdivision, Plat #90-28 44S T 2N - R 12W 0.6800 Barbara A. Minich 100% Uncommitted ( Section 32: A 150' x 200' Tract in the N/2 of Lot 3 of Clam Gulch Subdivision, plat #90- 28 44T T 2N - R 12W 0.2500 Ronald E. & Audrey L. Russell 100% Uncommitted Section 32: The southeast 138.9' of Lot 3 of Clam Gulch Subdivision, plat #90- 28 44U T 2N - R 12W 1.0000 3/1/13 Lue Rae Erickson 100% Marathon 60% Section 32: Lot 4 & Lot Union 40% 15, Clam Gulch subdivision, plat #90- 28 44V T 2N - R 12W 0.4000 Susan R. Cange 100% Uncommitted Section 32: Lot 5, Clam Gulch Subdivision, plat #90-28 44W T 2N - R12W 0.8000 Ronald E. Russell 100% Uncommitted Section 32: Lots 6 & 7, Clam Gulch Subdivision, plat #90- 28 Page 19 of 71 Ninilchik Unit Exhibit Reintegrated Falls Creek updated 2-5-05.xls Marathon = Marathon Oil Company Union = Union Oil Company of California EXHIBIT "A" NINILCHIK UNIT AREA, KENAI PENINSULA BOROUGH, ALASKA ITract No. Description of Lands Number of Serial Number & Basic Royalty & Ownership Percentage Overriding Royalty Working Interest Notes Acres Expiration Date of & Percentage & Percentage Lease PATENTED FEE LANDS 44X T 2N . R 12W 0.8000 John J. & Emily J. Minnick Uncommitted Section 32: Lots 8 & 9, Clam Gulch Subdivision, plat #90- 28 44Y T 2N - R 12W 0.8000 Richard D. Barrickman 100% Marathon 60% Section 32: Lots 10 & Union 40% 11, Clam Gulch Subdivision, plat #90- 28 442 T 2N - R 12W 0.4000 7/1/2011 Virgil Robbins 100% Marathon 60% Section 32: Lot 12, Union 40% Clam Gulch Subdivision, plat #90- 28 44AA 44AB ~4AC T 2N - R 12W 0.8000 Section 32: Lot 13A, Clam Gulch Subdivision, plat #90- 28 T 2N - R 12W 0.4600 Section 32: Lot 6, Clam Gulch Subdivision, Conley 1977 Addition, plat #78-43 Deborah Lee Murphy 100% Uncommitted 7/1/2011 Lawrence R. & Caroline E. Rebischke 100% Marathon 60% Union 40% T 2N - R 12W 0.9600 Section 32: Lots 7 & 8, Clam Gulch Subdivision, Conley 1977 Addition, plat #78- 43 6/20/2011 Marathon 60% Union 40% Karen Lorraine Landwehr 100% Page 20 of 71 Nínilchik Unit Exhibit Reintegrated Falls Creek updated 2-5-05.xls Marathon = Marathon Oil Company Union = Union Oil Company of California EXHIBIT "A" NINILCHIK UNIT AREA, KENAI PENINSULA BOROUGH, ALASKA Tract No. Description of Lands Number of Serial Number & Basic Royalty & Ownership Percentage Overriding Royalty Working Interest Notes Acres Expiration Date of & Percentage & Percentage Lease PATENTED FEE LANDS 44AD T 2N - R 12W 0.6700 7/1/2011 Lawrence R. & Caroline E. Rebischke Marathon 60% Section 32: Tract B, 100% Union 40% Clam Gulch Subdivision, plat #K509 44AE T2N-R12W 4.0200 1/10/2008 Per Eric Osmar & Frances L. Osmar Marathon 60% Section 32: Lots 1A & 50% x 12.5% Union 40% 10A, Clam Gulch Subdivision No.2, Plat #95-58 & minerals under the roadbeds of Thomack Street and North Laurel Avenue Arlyn H. & June C. Thomack 50% Uncommitted 44AF T 2N - R 12W 0.7600 Arlyn H. & June C. Thomack 50% Uncommitted Section 32: Lots 8 & 9, Thomack Subdivision, Plat #K-1575 8/1/2011 William Donald Reeder 50% Marathon 60% Union 40% 44AG T 2N - R 12W 0.5900 Sharon Nahorney 50% Uncommitted Section 32: Lot 7, Thomack Subdivision, ( Plat #K-1575 8/1/2011 William Donald Reeder 50% Marathon 60% Union 40% 44AH-1 T 2N - R 12W 0.1186 S.F. & Francis B. Rebischke 50% Marathon 60% Section 32: Lot 4, Union 40% Thomack Subdivision, Plat #K-1575 in so far as it lies within Tract "A" of former plat #K- 509 (est. 0.1186 acre) 8/1/2011 William Donald Reeder 50% Marathon 60% Union 40% Marathon := Marathon Oil Company Page 21 of 71 Union := Union Oil Company of California Ninilchik Unit Exhibit Reintegrated Falls Creek updated 2-5-05.xls Tract No. Description of Lands Number of Acres PATENTED FEE LANDS 44AH-2 T 2N - R 12W 0.2372 Section 32: Lot 4, Thomack Subdivision, Plat #K-1575 in so far as it lies outside Tract "A" of former plat #K- 509 (est. 0.2372 acre) 44AH-3 T 2N - R 12W 0.1370 Section 32: Lots 5 & 6, Thomack Subdivision, Plat #K-1575 in so far as it lies within Tract "A" of former plat #K- 509 (est. 0.137 acre) 44AH-4 T 2N - R 12W 0.2372 Section 32: Lots 5 & 6, Thomack Subdivision, Plat #K-1575 in so far as it lies outside Tract "A" of former plat #K- 509 (est. 0.2372 acre) 44AI T 2N - R 12W 3.0300 Section 32: Lot C-10 of Thomack Subd., Plat #1502 44AJ T 2N - R 12W 0.2800 Section 32: Lot 3, Thomack Subdivision, Plat #K-1575 EXHIBIT "A" NINILCHIK UNIT AREA, KENAI PENINSULA BOROUGH, ALASKA Serial Number & Expiration Date of Lease 1/10/2008 8/1/2011 1/10/2008 1/10/2008 7/1/2011 Page 22 of 71 Ninilchik Unit Exhibit Reintegrated Falls Creek updated 2-5-05.xls Basic Royalty & Ownership Percentage Overriding Royalty Working Interest Notes & Percentage & Percentage Per Eric Osmar 50% S. F. & Francis B. Rebischke 50% William Donald Reeder 50% Arlyn H. & June C. Thomack 50% Per Eric Osmar & Frances L. Osmar 50% x 12.5% Arlyn H. & June C. Thomack 50% Per Eric Osmar & Frances L. Osmar 50% x 12.5% Arlyn H. & June C. Thomack 50% Arlyn H. & June C. Thomack 50% Robert C. & Rosemary C. Johnson 50% Marathon 60% Union 40% Marathon 60% Union 40% Uncommitted Marathon 60% Union 40% Uncommitted Marathon 60% Union 40% Uncommitted Uncommitted Marathon 60% Union 40% Marathon = Marathon Oil Company Union = Union Oil Company of California EXHIBIT "A" NINILCHIK UNIT AREA, KENAI PENINSULA BOROUGH, ALASKA Tract No. Description of Lands Number of Serial Number & Basic Royalty & Ownership Percentage Overriding Royalty Working Interest Notes Acres Expiration Date of & Percentage & Percentage Lease PATENTED FEE LANDS 44AK T 2N - R 12W 0.5000 1/10/2008 Per Eric Osmar & Frances L. Osmar Marathon 60% Section 32: Lot 2, 50% x 12.5% Union 40% Thomack Subdivision, Plat #K·1575 ( 7/1/2011 9J Corporation 50% Marathon 60% Union 40% 44AL T 2N - R 12W 1 .0000 1/10/2008 Per Eric Osmar & Frances L. Osmar Marathon 60% Section 32: Block 6, 50% x 12.5% Union 40% Clam Gulch Park Subdivision, plat #75- Janet & Ron;::¡ld Ar;::¡ckett 50% Uncommitted 45A T 2N - R 12W 0.6300 1/10/2008 Per Eric Osmar & Frances L. Osmar Marathon 60% Section 29: Lot 10, 50% x 12.5% Union 40% Block 5, Clam Gulch Park Subdivision Theodore L. & Ann C. Morris 37.5% Uncommitted Michael F. HarriQan 12.5% 45B T 2N - R 12W 0.5000 1/10/2008 Per Eric Osmar & Frances L. Osmar Marathon 60% Section 29: Lot 9, 50% x 12.5% Union 40% Block 5, Clam Gulch Park Subdivision, plat tt7 F..ñQ Theodore L. & Ann C. Morris 37.5% Uncommitted Phyllis Edwards 12.5% 45C T 2N - R 12W 0.4600 1/10/2008 Per Eric Osmar & Frances L. Osmar Marathon 60% Section 29: Lot 8, 50% x 12.5% Union 40% Block 5, Clam Gulch Paul & Karen Daugherty 12.5% Park Subdivision, plat H7r:;._~O Theodore L. & Ann C. Morris 37.5% Uncommitted Page 23 of 71 Ninilchik Unit Exhibit Reintegrated Falls Creek updated 2-5-05.xls Marathon = Marathon Oil Company Union = Union Oil Company of California EXHIBIT "A" NINILCHIK UNIT AREA, KENAI PENINSULA BOROUGH, ALASKA Tract No. Description of Lands Number of Serial Number & Basic Royalty & Ownership Percentage Overriding Royalty Working Interest Notes Acres Expiration Date of & Percentage & Percentage Lease PATENTED FEE LANDS 450 T2N-R12W 0.4600 1/10/08 Per Eric Osmar & Frances L. Osmar Marathon 60% Section 29: Lot 7, 7/1/11 50% x 12.5% Union 40% Block 5, Clam Gulch Paul & Karen Daugherty 12.5% Park Subdivision, plat H7&:._RQ ThAorlorA I . R. Ann C Morris ~7 fi% l J nr.ommittArI 45E T 2N - R 12W 0.4600 1/10/08 Per Eric Osmar & Frances L. Osmar Marathon 60% Section 29: Lot 6, 8/1/11 50% x 12.5% Union 40% Block 5, Clam Gulch 9/1/11 Michel D. Lee 1/3 x 12.5% x 12.5% Park Subdivision, plat 9/1/11 Phillip Boughton 1/3 x 12.5% x 12.5% #75-69 Jack Boughton 1/3 x 12.5% x 12.5% Theodore L. & Ann C. Morris 37.5% Uncommitted 45F T 2N - R 12W 0.9200 1/10/2008 Per Eric Osmar & Frances L. Osmar Marathon 60% Section 29: Lots 4 & 5, 50% x 12.5% Union 40% Block 5, Clam Gulch Park Subdivision, plat #75-69 Theodore L. & Ann C. Morris 37.5% Uncommitted Sherwood Williams, Jr. & Darlene M. Ross 12.5% 45G T 2N - R 12W 0.4600 1/10/08 Per Eric Osmar & Frances L. Osmar Marathon 60% Section 29: Lot 3, 7/1/11 50% x 12.5% Union 40% Block 5, Clam Gulch Robert S. Kasavage 12.5% Park Subdivision, plat #75-69 Theodore L. & Ann C. Morris 37.5% Uncommitted ~5H T2N-R12W 0.4800 1/10/2008 Per Eric Osmar & Frances L. Osmar Marathon 60% Section 29: Lot 1, 50% x 12.5% Union 40% Block 5, Clam Gulch Park Subdivision, plat #75-69 Theodore L. & Ann C. Morris 37.5% Uncommitted Danny C. & Alice Eileen Rose 12.5% Page 24 of 71 Ninilchik Unit Exhibit Reintegrated Falls Creek updated 2-5-05.xls Marathon = Marathon Oil Company Union = Union Oil Company of California EXHIBIT "A" NINILCHIK UNIT AREA, KENAI PENINSULA BOROUGH, ALASKA Tract No. Description of Lands Number of Serial Number & Basic Royalty & Ownership Percentage Overriding Royalty Working Interest Notes Acres Expiration Date of & Percentage & Percentage Lease PATENTED FEE LANDS 451 T 2N - R 12W 0.4300 1/10/2008 Per Eric Osmar & Frances L. Osmar Marathon 60% Section 29: Lot 2, 9/1/11 50% x 12.5% Union 40% Block 5, Clam Gulch Robert W. & Casina G. Wilkins 12.5% Park Subdivision, plat x 12.5% #75-69 Theodore L. & Ann C. Morris 37.5% Uncommitted 45J T 2N - R 12W 1 .1 000 1/10/2008 Per Eric Osmar & Frances L. Osmar Marathon 60% Section 29: Lots 1 & 2, 50% x 12.5% Union 40% Block 1, Clam Gulch James L. & Doris R. Waggoner 12.5% Park Subdivision, plat x 12.5% #75-69 Theodore L. & Ann C. Morris 37.5% Uncommitted 45K T 2N - R 12W 1.3300 1/10/2008 Per Eric Osmar & Frances L. Osmar Marathon 60% Section 29: Lots 1,2,3, 50% x 12.5% Union 40% Block 2, Clam Gulch Park Subdivision. plat #75-69 \45L Theodore L. & Ann C. Morris 37.5% Uncommitted Mildred A. Drum 12.5% T 2N - R 12W 0.9200 1/1 0/2008 Per Eric Osmar & Frances L. Osmar Marathon 60% Section 29: Lots 4 & 5, 50% x 12.5% Union 40% Block 2, Clam Gulch William L. & Renae Denton 12.5% Park Subdivision. plat -( #75-69 Theodore L. & Ann C. Morris 37.5% Uncommitted 45M T 2N - R 12W 0.9200 1/10/2008 Per Eric Osmar & Frances L. Osmar Marathon 60% Section 29: Lots 6 & 7, 50% x 12.5% Union 40% Block 2, Clam Gulch Park Subdivision, plat #75-69 Theodore L. & Ann C. Morris 37.5% Uncommitted Kurt Neil & Vicki L. Nelson 12.5% Page 25 of 71 Ninilchik Unit Exhibit Reintegrated Falls Creek updated 2-5-05.xls Marathon = Marathon Oil Company Union = Union Oil Company of California EXHIBIT "A" NINILCHIK UNIT AREA, KENAI PENINSULA BOROUGH, ALASKA Tract No. Description of Lands Number of Serial Number & Basic Royalty & Ownership Percentage Overriding Royalty Working Interest Notes Acres Expiration Date of & Percentage & Percentage Lease PATENTED FEE LANDS 45N T 2N - R 12W 2.3000 1/10/2008 Per Eric Osmar & Frances L. Osmar Marathon 60% Section 29: Lots 8,9,10 50% x 12.5% Union 40% & 11, Block 2, Clam Gulch Park Subdivision, plat #75- 69 Theodore L. & Ann C. Morris 37.5% Uncommitted Charles R. & Elizabeth J. Hudson 12.5% 450 T 2N - R 12W 0.9700 1/10/2008 Per Eric Osmar & Frances L. Osmar Marathon 60% Section 29: Lots 1 & 2, 50% x 12.5% Union 40% Block 4, Clam Gulch Park Subdivision, plat #75-69 Theodore L. & Ann C. Morris 37.5% Uncommitted Richard Flanders 12.5% 45P T 2N - R 12W 0.4600 1/10/2008 Per Eric Osmar & Frances L. Osmar Marathon 60% Section 29: Lot 3, 7/1/11 50% x 12.5% Union 40% Block 4, Clam Gulch Leslie W. & Frances J. Todd 12.5% Park Subdivision, plat #75-69 Theodore L. & Ann C. Morris 37.5% Uncommitted 45Q T 2N - R 12W 0.4600 1/1 0/2008 Per Eric Osmar & Frances L. Osmar Marathon 60% Section 29: Lot 4, 50% x 12.5% Union 40% Block 4, Clam Gulch Park Subdivision, plat #75-69 Theodore L. & Ann C. Morris 37.5% Uncommitted John W. & Marjorie L. Williamson 12.5% Page 26 of 71 Ninilchik Unit Exhibit Reintegrated Falls Creek updated 2-5-05.xls Marathon = Marathon Oil Company Union = Union Oil Company of California EXHIBIT "A" NINILCHIK UNIT AREA, KENAI PENINSULA BOROUGH, ALASKA Tract No. Description of Lands Number of Serial Number & Basic Royalty & Ownership Percentage Overriding Royalty Working Interest Notes Acres Expiration Date of & Percentage & Percentage Lease PATENTED FEE LANDS 45R T 2N - R 12W 0.4600 1/10/2008 Per Eric Osmar & Frances L. Osmar Marathon 60% Section 29: Lot 5, 50% x 12.5% Union 40% Block 4, Clam Gulch Park Subdivision, plat #75-69 Theodore L. & Ann C. Morris 37.5% Uncommitted Jean M. & Larry P. BrookinQ 12.5% 45S T 2N - R 12W 0.4600 1/10/2008 Per Eric Osmar & Frances L. Osmar Marathon 60% Section 29: Lot 6, 7/1/11 50% x 12.5% Union 40% Block 4, Clam Gulch Michael & Daune Wyatt 12.5% Park Subdivision, plat #75-69 Theodore L. & Ann C. Morris 37.5% Uncommitted 45T T 2N - R 12W 0.4600 1/10/2008 Per Eric Osmar & Frances L. Osmar Marathon 60% Section 29: Lot 7, 50% x 12.5% Union 40% Block 4, Clam Gulch Park Subdivision, plat #75-69 Theodore L. & Ann C. Morris 37.5% Uncommitted Lee F. & Alice M. Hawkins 12.5% 45U T 2N - R 12W 0.9200 1/1 0/2008 Per Eric Osmar & Frances L. Osmar Marathon 60% Section 29: Lots 8 & 9, 50% x 12.5% Union 40% Block 4, Clam Gulch Park Subdivision, plat #75-69 { Theodore L. & Ann C. Morris 37.5% Uncommitted Vernon & Mary Osborn 12.5% 45V T 2N - R 12W 0.4600 1/10/2008 Per Eric Osmar & Frances L. Osmar Marathon 60% Section 29: Lot 10, 9/1/11 50% x 12.5% Union 40% Block 4, Clam Gulch Robert W. & Casina G. Wilkins 12.5% Park Subdivision, plat x 12.5% #75-69 Theodore L. & Ann C. Morris 37.5% Uncommitted Page 27 of 71 Ninilchik Unit Exhibit Reintegrated Falls Creek updated 2-5-05.xls Marathon::;: Marathon Oil Company Union:::: Union Oil Company of California EXHIBIT "A" NINILCHIK UNIT AREA, KENAI PENINSULA BOROUGH, ALASKA Tract No. Description of Lands Number of Serial Number & Basic Royalty & Ownership Percentage Overriding Royalty Working Interest Notes Acres Expiration Date of & Percentage & Percentage Lease PATENTED FEE LANDS 45W T 2N - R 12W 1 . 1300 1/1 0/2008 Per Eric Osmar & Frances L. Osmar Marathon 60% Section 29: Lots 11 & 50% x 12.5% Union 40% 12, Block 4, Clam Gulch Park Subdivision, plat #75- 69 Theodore L. & Ann C. Morris 37.5% Uncommitted Theodore Paullas 12.5% 45X T 2N - R 12W 3.0000 1/1 0/2008 Per Eric Osmar & Frances Osmar 50% Marathon 60% Section 29: Mineral Union 40% interest in dedicated roads and easements in Clam Gulch Park Subdivision, plat #75- 69 (est. 3 acres) Theodore L. & Ann C. Morris 37.5% Uncommitted Donald F. & Verona G. Smith 12.5% 45Y T 2N - R 12W 12.0350 1/1 0/2008 Per Eric Osmar & Frances Osmar 50% Marathon 60% Section 29: Minerals Union 40% underlying the Sterling Highway right-of-way as it passes through Clam Gulch Park Subdivision, plat #75- 69 Theodore L. & Ann C. Morris 50% Uncommitted 45Z T2N-R12W 0.4700 1/1 0/2008 Per Eric Osmar & Frances L. Osmar Marathon 60% Section 29: Lot 1, 50% x 12.5% Union 40% Block 3, Clam Gulch Regina A. & Joe M. Miller 12.5% Park Subdivision, plat #75-69 Theodore L. & Ann C. Morris 37.5% Uncommitted Page 28 of 71 Ninilchík Unit Exhibit Reintegrated Falls Creek updated 2-5-05.xls Marathon = Marathon Oil Company Union = Union Oil Company of California EXHIBIT "A" NINILCHIK UNIT AREA, KENAI PENINSULA BOROUGH, ALASKA Tract No. Description of Lands Number of Serial Number & Basic Royalty & Ownership Percentage Overriding Royalty Working Interest Notes Acres Expiration Date of & Percentage & Percentage Lease PATENTED FEE LANDS 45AA T 2N - R 12W 0.5100 1/10/2008 Per Eric Osmar & Frances L. Osmar Marathon 60% Section 29: Lot 2, 50% x 12.5% Union 40% Block 3, Clam Gulch Park Subdivision, plat #75-69 Theodore L. & Ann C. Morris 37.5% Uncommitted Scott Rumfield 12.5% 45AB T 2N - R 12W 0.9400 1/10/2008 Per Eric Osmar & Frances L. Osmar Marathon 60% Section 29: Lot 3 & 4, 50% x 12.5% Union 40% Block 3, Clam Gulch Park Subdivision, plat #75-69 Theodore L. & Ann C. Morris 37.5% Uncommitted Sally A. Lawrence 12.5% 45AC T 2N - R 12W 0.51 00 1/10/2008 Per Eric Osmar & Frances L. Osmar Marathon 60% Section 29: Lot 19, 50% x 12.5% Union 40% Block 5, Clam Gulch Park Subdivision, plat #75-69 Theodore L. & Ann C. Morris 37.5% Uncommitted Debbie A. Hall 12.5% 45AD T 2N - R 12W 0.4600 1/10/2008 Per Eric Osmar & Frances L. Osmar Marathon 60% Section 29: Lot 18, 50% x 12.5% Union 40% Block 5, Clam Gulch Park Subdivision, plat #75-69 Theodore L. & Ann C. Morris 37.5% Uncommitted Donald R. & Debra A. Norvell 12.5% 45AE T 2N - R 12W 0.8800 1/10/2008 Per Eric Osmar & Frances L. Osmar Marathon 60% Section 29: Lot 16 & 50% x 12.5% Union 40% 17, Block 5, Clam Mary E.M. Leffel, trustee Leffel Family Gulch Park Trust 12.5% Subdivision, plat #75- 69 Theodore L. & Ann C. Morris 37.5% Uncommitted Page 29 of 71 Ninilchík Unit Exhibit Reintegrated Falls Creek updated 2-5-05.xls Marathon = Marathon Oil Company Union = Union Oil Company of California EXHIBIT "A" NINILCHIK UNIT AREA, KENAI PENINSULA BOROUGH, ALASKA Tract No. Description of Lands Number of Serial Number & Basic Royalty & Ownership Percentage Overriding Royalty Working Interest Notes Acres Expiration Date of & Percentage & Percentage Lease PATENTED FEE LANDS 45AF T 2N - R 12W 0.8800 1/1 0/2008 Per Eric Osmar & Frances L. Osmar Marathon 60% Section 29: Lot 14 & 50% x 12.5% Union 40% 15, Block 5, Clam Gulch Park Subdivision, plat #75- 69 Theodore L. & Ann C. Morris 37.5% Uncommitted Sheila A. Graham 12.5% 45AG T 2N - R 12W 0.8800 1/1 0/2008 Per Eric Osmar & Frances L. Osmar Marathon 60% Section 29: Lot 12 & 50% x 12.5% Union 40% 13, Block 5, Clam Gulch Park Subdivision, plat #75- 69 Theodore L. & Ann C. Morris 37.5% Uncommitted Patricia A. Lillian & Claralene Williams 12.5% 45AH T 2N - R 12W 0.3900 1/10/2008 Per Eric Osmar & Frances L. Osmar Marathon 60% Section 29: Lot 11, 50% x 12.5% Union 40% Block 5, Clam Gulch Park Subdivision, plat #75-69 Theodore L. & Ann C. Morris 37.5% Uncommitted June A. Scheele, Mary L. Stoltman & Nola E. Stoltman 12.5% Page 30 of 71 Ninilchik Unit Exhibit Reintegrated Falls Creek updated 2-5-05.xls Marathon = Marathon Oil Company Union = Union Oil Company of California Tract No. Description of Lands Number of Acres PATENTED FEE LANDS 46 T 2N - R 12W 128.0500 Section 32: Lot 3 and SW /4SW/4 T 1 N - R 12W Section 6: All of Lot 1, less and except that part lying to the south and east of the Sterling Highway a part of which is described as Lots 1-7 of the Webb Tracts 1974 Subdivision (Plat #H74- T 1 N - R 12W 41 .0000 Section 5: Lot 4 Section 6: All of Lot 1 lying to the south and east of the Sterling Highway 47 48 T 1N - R 12W 2.6690 Section 6: Tract #1 of Udelhoven Subdivision (Plat #H77-70), a part of government Lot 2 EXHIBIT "A" NINILCHIK UNIT AREA, KENAI PENINSULA BOROUGH, ALASKA Serial Number & Expiration Date of Lease 12/19/2009 5/1/2003 10/13/1970 Page 31 of 71 Ninilchik Unit Exhibit Reintegrated Falls Creek updated 2-5-05.xls Basic Royalty & Ownership Percentage Overriding Royalty Working Interest Notes & Percentage & Percentage Trudy S. Webb 100% x 12.5% William N. Wallner 50% x 12.5% Helen L. Magionos 50% JoAnn Steik 1/3 x 50% x 12.5% James Thebaut 1/3 x 50% x 12.5% Shirley Cox 1/3 x 50% x 12.5% Ashley Udelhoven 1/6 x 50% x 12.5% Jesse Udelhoven 1/6 x 50% x 12.5% Jennifer Wiederspohn 1/6 x 50% x 12.5% Ann Davis 1/6 x 50% x 12.5% Dawn Dutton 1/6 x 50% x 12.5% Sandra Udelhoven-Taylor 1/6 x 50% x 12.5% Marathon 60% Union 40% Marathon 60% Union 40% Uncommitted Chevron USA, Inc. Marathon 60% 6.5% x 100% Union 40% Marathon = Marathon Oil Company Union = Union Oil Company of California Tract No. Description of Lands 49 Number of Acres PATENTED FEE LANDS T1N-R12W 29.9510 Section 6: Tracts 2, 3, 5, 6 and 7 of Udelhoven Subdivision (Plat #H77-70), a part of government Lot 2, less that part of Tracts 2 and 3 lying outside the SW/4NE/4 and also any mineral rights lying under the roadbed of the Sterling Highway right of way passing through GLO Lot 2 EXHIBIT "A" NINILCHIK UNIT AREA, KENAI PENINSULA BOROUGH, ALASKA Serial Number & Expiration Date of Lease 10/13/1970 Basic Royalty & Ownership Percentage Overriding Royalty Working Interest Notes & Percentage & Percentage JoAnn Steik 1/3 x 50% x 12.5% James Thebaut 1/3 x 50% x 12.5% Shirley Cox 1/3 x 50% x 12.5% Ashley Udelhoven 1/6 x 25% x 12.5% Jesse Udelhoven 1/6 x 25% x 12.5% Jennifer Wiederspohn 1/6 x 25% x 12.5% Ann Davis 1/6 x 25% x 12.5% Dawn Dutton 1/6 x 25% x 12.5% Sandra Udelhoven-Taylor 1/6 x 25% x 12.5% James Udelhoven 25% x 12.5% Chevron USA, Inc. Marathon 60% 6.5% x 100% Union 40% 49A T1N-R12W 2.0000 10/13/1970 JoAnn Steik 1/3 x 50% x 12.5% Chevron USA, Inc. Marathon 60% Section 6: That part of James Thebaut 1/3 x 50% x 12.5% 6.5% x 50% Union 40% Tracts 2 and 3 lying Shirley Cox 1/3 x 50% x 12.5% outside the SW/4NE/4 Ashley Udelhoven 1/6 x 25% x 12.5% Jesse Udelhoven 1/6 x 25% x 12.5% Jennifer Wiederspohn 1/6 x 25% x 12.5% Ann Davis 1/6 x 25% x 12.5% Dawn Dutton 1/6 x 25% x 12.5% Sandra Udelhoven-Taylor 1/6 x 25% x 1?5% 50 T1N-R12W 3.6200 10/13/1970 JoAnn Steik 1/3 x 50% x 12.5% Chevron USA, Inc. Marathon 60% Section 6: That part of James Thebaut 1/3 x 50% x 12.5% 6.5% x 100% Union 40% Tract 4 of Udelhoven Shirley Cox 1/3 x 50% x 12.5% Subdivision lying within Robert Lee Wiederspohn & Jennifer the SW/4NE/4 Linann Wiederspohn (H&W) 50% x 12.5% Page 32 of 71 Ninilchik Unit Exhibit Reintegrated Falls Creek updated 2-5-05.xls Marathon = Marathon Oil Company Union = Union Oil Company of California EXHIBIT "A" NINILCHIK UNIT AREA, KENAI PENINSULA BOROUGH, ALASKA Tract No. Description of Lands Number of Serial Number & Basic Royalty & Ownership Percentage Overriding Royalty Working Interest Notes Acres Expiration Date of & Percentage & Percentage Lease PATENTED FEE LANDS 50A T1N-R12W 2.6700 10/13/1970 JoAnn Steik 1/3 x 50% x 12.5% Chevron USA, Inc. Marathon 60% Section 6: That part of James Thebaut 1/3 x 50% x 12.5% 6.5% x 50% Union 40% Tract 4 of Udelhoven Shirley Cox 1/3 x 50% x 12.5% Subdivision lying Robert Lee Wiederspohn & Jennifer outside the SW/4NE/4 Linann Wiederspohn (H&W) 50% x 12.5% (' 51 T1N-R12W 0.9100 11/4/1970 Margaret C. Vanderbilt Trust dated Chevron USA, Inc. Marathon 60% Section 6: That portion 1/26/95 100% x 12.5% 6.5% x 100% Union 40% of the north 165' of the N/2SE/4 of section 6- 1 N-12W lying west of the Sterling Highway 51A T1N-R12W 2.3400 11/4/1970 Margaret C. Vanderbilt Trust dated Chevron USA, Inc. Marathon 60% Section 6: The North 1/26/95 100% x 12.5% 6.5% x 50% Union 40% 165' of GLO Lot 3 52 T1N-R12W 58.0000 12/1/2011 Harold A. Pederson & Marguerite M. Marathon 60% Section 6: That part of Pederson (H&W) 100% x 12.5% Union 40% N/2SE/4Iying east of Sterling Highway 53 T1N-R12W 21.0900 4/16/1963 Harold Lee Pederson & Diane R. Chevron USA, Inc. Marathon 60% Section 6: That part of Pederson (H&W) 100% x 12.5% 6.5% x 100% Union 40% N/2SE/4 lying west of Sterling Highway, less the north 165' thereof 53A T1N-R12W 28.9000 4/16/1963 Harold Lee Pederson & Diane R. Chevron USA, Inc. Marathon 60% Section 6: Lot 3 except Pederson (H&W) 100% x 12.5% 6.5% x 50% Union 40% the North 165' thereof Page 33 of 71 Ninilchik Unit Exhibit Reintegrated Falls Creek updated 2-5-05.xls Marathon = Marathon Oil Company Union = Union Oil Company of California Tract No. Description of Lands Number of Acres PATENTED FEE LANDS 54 T 1N - R 12W 2.6600 Section 6: Block 3. Lot 2 of Clammers Haven Subdivision platted in Plat #H-76-62, a part of S/2SE/4 T 1N - R 12W 2.8800 Section 6: Block2, Lot 4 of Clammers Haven Subdivision platted in Plat #H-76-62, a part of S/2SE/4 T 1 N - R 12W 18.6100 Section 6: Block2, Lots 2, 3, 5, 6, 7 and Block 3, Lots 1,3 and 4 and Block 4, Lots 1 and 2, and Block 5. Lots 2 and 3 of Clammers Haven Subdivision platted in Plat #H-76-62 and that part of Block 1, Lots 13- 16 (inclusive) lying in the SW/4SE/4 and that part of Block 2, Lots 5 and 6 lying in the SW/4SE/4 of Clammers Haven Addition No.1. platted in #H-78-25, a part of S/2SE/4 55 56 EXHIBIT "A" NINILCHIK UNIT AREA, KENAI PENINSULA BOROUGH, ALASKA Serial Number & Expiration Date of Lease 3/21/1963 3/21/1963 3/21/1963 Page 34 of 71 Ninilchik Unit Exhibit Reintegrated Falls Creek updated 2-5-05.xls Basic Royalty & Ownership Percentage Overriding Royalty Working Interest Notes & Percentage & Percentage James Reinhardt 1/4 x 3/4 x 12.5% Charles Weyhaupt 1/4 x 3/4 x 12.5% Thomas Weyhaupt 1/4 x 3/4 x 12.5% David Weyhaupt 1/4 x 3/4 x 12.5% Roberta Ann Kizer 1/4 x 12.5% James Reinhardt 1/4 x 3/4 x 12.5% Charles Weyhaupt 1/4 x 3/4 x 12.5% Thomas Weyhaupt 1/4 x 3/4 x 12.5% David Weyhaupt 1/4 x 3/4 x 12.5% David William Petty1/4 x 12.5% James Reinhardt 1/4 x 3/4 x 12.5% Charles Weyhaupt 1/4 x 3/4 x 12.5% Thomas Weyhaupt 1/4 x 3/4 x 12.5% David Weyhaupt 1/4 x 3/4 x 12.5% Norma Jeanne O'Riorden now Nichols 1/6 x 12.5% Walter G. Williams 1/12 x 12.5% Chevron USA, Inc. Marathon 60% 6.5% x 100% Union 40% Chevron USA, Inc. Marathon 60% 6.5% x 100% Union 40% Chevron USA, Inc. Marathon 60% 6.5% x 100% Union 40% Marathon = Marathon Oil Company Union = Union Oil Company of California EXHIBII "A" NINILCHIK UNIT AREA, KENAI PENINSULA BOROUGH. ALASKA Tract No. Description of Lands Number of Serial Number & Basic Royalty & Ownership Percentage Overriding Royalty Working Interest Notes Acres Expiration Date of & Percentage & Percentage Lease PATENTED FEE LANDS 57 T1N-R12W 3.1600 3/21/1963 James Reinhardt 1/4 x 3/4 x 12.5% Chevron USA, Inc. Marathon 60% Section 6: Block5, Lot Charles Weyhaupt 1/4 x 3/4 x 12.5% 6.5% x 100% Union 40% 5 of Clammers Haven Thomas Weyhaupt 1/4 x 3/4 x 12.5% Subdivision platted in David Weyhaupt 1/4 x 3/4 x 12.5% Plat #H-76-62, a part of Michael Roney & Shawna A. Roney 1/4 S/2SE/4 x 12.5% 58 T 1 N - R 12W 3.5900 3/21/1963 James Reinhardt 1/4 x 3/4 x 12.5% Chevron USA, Inc. Marathon 60% (' Section 6: Block5, Lot Charles Weyhaupt 1/4 x 3/4 x 12.5% 6.5% x 100% Union 40% 4 of Clammers Haven Thomas Weyhaupt 1/4 x 3/4 x 12.5% Subdivision platted in David Weyhaupt 1/4 x 3/4 x 12.5% Plat #H-76-62, a part of Andrea Gregory 1/4 x 12.5% S/2SE/4 59 T1N-R12W 2.9400 3/21/1963 James Reinhardt 1/4 x 3/4 x 12.5% Chevron USA, Inc. Marathon 60% Section 6: Block2, Lot Charles Weyhaupt 1/4 x 3/4 x 12.5% 6.5% x 100% Union 40% 1 of Clammers Haven Thomas Weyhaupt 1/4 x 3/4 x 12.5% Subdivision platted in David Weyhaupt 1/4 x 3/4 x 12.5% Plat #H-76-62, a part of Veray H. Matthews 1/8 x 12.5% S/2SE/4 Jens H. Hansen & Anneline Hansen (H&W. TBE) 1/8 x 12.5% 60 T1N-R12W 2.9000 3/21/1963 James Reinhardt 1/4 x 3/4 x 12.5% Chevron USA, Inc. Marathon 60% Section 6: Block2, Lot Charles Weyhaupt 1/4 x 3/4 x 12.5% 6.5% x 100% Union 40% 8 of Clammers Haven Thomas Weyhaupt 1/4 x 3/4 x 12.5% Subdivision platted in David Weyhaupt 1/4 x 3/4 x 12.5% Plat #H-76-62, a part of John Stallone, Jr. 1/4 x 12.5% ( S/2SE/4 61 T1N-R12W 3.2600 3/21/1963 James Reinhardt 1/4 x 3/4 x 12.5% Chevron USA, Inc. Marathon 60% Section 6: Block5, Lot Charles Weyhaupt 1/4 x 3/4 x 12.5% 6.5% x 100% Union 40% 1 of Clammers Haven Thomas Weyhaupt 1/4 x 3/4 x 12.5% Subdivision platted in David Weyhaupt 1/4 x 3/4 x 12.5% Plat #H-76-62, a part of Dennis Hedman 1/4 x 12.5% S/2SE/4 Page 35 of 71 Ninilchik Unit Exhibit Reintegrated Falls Creek updated 2-5-05.xls Marathon::: Marathon Oil Company Union::: Union Oil Company of California Tract No. Description of Lands Number of Acres PATENTED FEE LANDS 62 T 1N - R 12W 34.9900 Section 6: That part of government Lot 4 lying in the SE/4SW/4, less Block 1, Lot 9 and Block 2, Lots 3 and 4 of Clammers Haven Addition No.1 as platted in plat #H-78-25 a/d/a That part of Block1, Lot 4 and that part of Block 2 Lot 1 lying in the SE/4SW/4 and all of Block 1, Lots 5-8 (inclusive) and 10- 16 (inclusive) and Block 2, Lots 2, 5 and 6 and any interest in road ways and easements dedicated to public use in the Clammers Haven Addition No.1 as platted in plat # H-78- 25 EXHIBIT "A" NINILCHIK UNIT AREA, KENAI PENINSULA BOROUGH, ALASKA Serial Number & Expiration Date of Lease 3/21/1963 Page 36 of 71 Ninilchik Unit Exhibit Reintegrated Falls Creek updated 2-5-05.xls Basic Royalty & Ownership Percentage Overriding Royalty Working Interest Notes & Percentage & Percentage James Reinhardt 1/4 x 3/4 x 12.5% Charles Weyhaupt 1/4 x 3/4 x 12.5% Thomas Weyhaupt 1/4 x 3/4 x 12.5% David Weyhaupt 1/4 x 3/4 x 12.5% Norma Jeanne O'Riorden now Nichols 1/6 x 12.5% Walter G. Williams 1/12 x 12.5% Chevron USA, Inc. Marathon 60% 6.5% x 100% Union 40% Marathon = Marathon Oil Company Union = Union Oil Company of California EXHIBIT "A" NINILCHIK UNIT AREA, KENAI PENINSULA BOROUGH, ALASKA Tract No. Description of Lands Number of Serial Number & Basic Royalty & Ownership Percentage Overriding Royalty Working Interest Notes Acres Expiration Date of & Percentage & Percentage Lease PATENTED FEE LANDS 62A T 1N, R 12W, S.M. 12.1100 3/21/1963 James Reinhardt 1/4 x 3/4 x 12.5% Chevron USA, Inc. Marathon 60% Sec 6: Those parts of Charles Weyhaupt 1/4 x 3/4 x 12.5% 6.5% x 50% Union 40% Clammers Haven Thomas Weyhaupt 1/4 x 3/4 x 12.5% Addition No.1 (plat H- David Weyhaupt 1/4 x 3/4 x 12.5% 78-25), described as all Norma Jeanne O'Riorden now Nichols of Block 1, Lot 2 and 1/6 x 12.5% those parts of Block 1 , Walter G. Williams 1/12 x 12.5% Lot 4 lying outside the SE/4SW/4 AND those parts of Block 2. Lot 1 lying outside the SE/4SW/4 and all minerals underlying dedicated roads and easements lying outside the SE/4SW /4 (a part of GLO Lot 4) 628 T 1N, R 12W, S.M. 4.4600 3/21/1963 James Reinhardt 1/4 x 3/4 x 12.5% Chevron USA. Inc. Marathon 60% Sec 6: Those parts of Charles Weyhaupt 1/4 x 3/4 x 12.5% 6.5% x 50% Union 40% Clammers Haven Thomas Weyhaupt 1/4 x 3/4 x 12.5% Addition NO.1 (plat H- David Weyhaupt 1/4 x 3/4 x 12.5% 78-25), described as all Edward C. & Myong C. Greene 25% of Block 1. Lot 1 (a part of GLO Lot 4) ( 62C T 1N, R 12W, S.M. 2.9900 3/21/1963 James Reinhardt 1/4 x 3/4 x 12.5% Chevron USA. Inc. Marathon 60% Sec 6: Those parts of Charles Weyhaupt 1/4 x 3/4 x 12.5% 6.5% x 50% Union 40% Clammers Haven Thomas Weyhaupt 1/4 x 3/4 x 12.5% Addition No.1 (plat H- David Weyhaupt 1/4 x 3/4 x 12.5% 78-25). described as all Keith C. & Flora D. Lovejoy 25% of Block 1. Lot 3 (a part of GLO Lot 4) Page 37 of 71 Ninilchik Unit Exhibit Reintegrated Falls Creek updated 2-5-05.xls Marathon:: Marathon Oil Company Union = Union Oil Company of California EXHIBIT "A" NINILCHIK UNIT AREA, KENAI PENINSULA BOROUGH, ALASKA Tract No. Description of Lands Number of Serial Number & Basic Royalty & Ownership Percentage Overriding Royalty Working Interest Notes Acres Expiration Date of & Percentage & Percentage Lease PATENTED FEE LANDS 63 T 1 N - R 12W 1.7000 3/21/1963 James Reinhardt 1/4 x 3/4 x 12.5% Chevron USA, Inc. Marathon 60% Section 6: That part of Charles Weyhaupt 1/4 x 3/4 x 12.5% 6.5% x 100% Union 40% Government Lot 4 Thomas Weyhaupt 1/4 x 3/4 x 12.5% more particularly David Weyhaupt 1/4 x 3/4 x 12.5% described as Block 2, Michael Barry & Marjorie Barry (H&W) Lot 4 of Clammers 1/4 x 12.5% Haven Addition No.1, as platted in plat # H- 78-25 64 T1N-R12W 1. 7400 3/21/1963 James Reinhardt 1/4 x 3/4 x 12.5% Chevron USA, Inc. Marathon 60% Section 6: That part of Charles Weyhaupt 1/4 x 3/4 x 12.5% 6.5% x 100% Union 40% Government Lot 4 Thomas Weyhaupt 1/4 x 3/4 x 12.5% more particularly David Weyhaupt 1/4 x 3/4 x 12.5% described as Block 2, Michael Barry & Marjorie Barry (H&W) Lot 3 of Clammers 1/4 x 12.5% Haven Addition No.1, as platted in plat # H- 78-25 65 T1N-R12W 1.5700 3/21/1963 James Reinhardt 1/4 x 3/4 x 12.5% Chevron USA, Inc. Marathon 60% Section 6: That part of Charles Weyhaupt 1/4 x 3/4 x 12.5% 6.5% x 100% Union 40% Government Lot 4 Thomas Weyhaupt 1/4 x 3/4 x 12.5% more particularly David Weyhaupt 1/4 x 3/4 x 12.5% described as Block 1 , Corey Kruse 1/8 x 12.5% Lot 9 of Clammers James Kruse 1/8 x 12.5% Haven Addition No.1, as platted in plat # H- 78-25 Page 38 of 71 Ninilchik Unit Exhibit Reintegrated Falls Creek updated 2-5-05.xls Marathon = Marathon Oil Company Union = Union Oil Company of California EXHIBIT "A" NINILCHIK UNIT AREA, KENAI PENINSULA BOROUGH, ALASKA Tract No. Description of Lands Number of Serial Number & Basic Royalty & Ownership Percentage Overriding Royalty Working Interest Notes Acres Expiration Date of & Percentage & Percentage Lease PATENTED FEE LANDS 66 T 1 N - R 12W 103.4660 11/15/2002 Emil R. Bartolowits & Frances M. Marathon 60% Section 7: Government Bartolowits (H&W, TBE) 100% x 12.5% Union 40% Lots 1 and 2 and the NE/4NW/4, less and except Lots 7, 9, 10, 12. 14 and 15 of Falls Creek Ridge 1978 Subdivision (Plat #H78- 23 replatted #H78-71), a part of government Lot 2 It 67 T 1 N - R 12W 4.0300 Theresa A. Wilson 50% Uncommitted Section 7: Lots 7 and James L. Wilson 50% 10 of Falls Creek Ridge 1978 Subdivision (Plat #H78- 23 replatted #H78-71). a part of government Lot 2 68 T1N-R12W 4.0280 6/20/2011 Richard S. Bartolowits 100% x 12.5% Marathon 60% Section 7: Lots 9 and Union 40% 12 of Falls Creek Ridge 1978 Subdivision (Plat #H78- 23 replatted #H78-71 ), a part of government Lot 2 69 T1N-R12W 2.0280 11/15/2002 Paul D. Bartolowits 50% x 12.5% Marathon 60% Section 7: Lot 14 of LaRae Bartolowits 50% x 12.5% Union 40% Falls Creek Ridge 1978 Subdivision (Plat #H78- 23 replatted #H78-71), a part of government Lot 2 Page 39 of 71 Ninilchik Unit Exhibit Reintegrated Falls Creek updated 2-S-0S.xls Marathon = Marathon Oil Company Union = Union Oil Company of California EXHIBIT "A" NINILCHIK UNIT AREA, KENAI PENINSULA BOROUGH, ALASKA Tract No. Description of Lands Number of Serial Number & Basic Royalty & Ownership Percentage Overriding Royalty Working Interest Notes Acres Expiration Date of & Percentage & Percentage Lease PATENTED FEE LANDS 70 T1N-R12W 2.0260 11/15/2002 Paul D. Bartolowits 100% x 12.5% Marathon 60% Section 7: Lot 15 of Union 40% Falls Creek Ridge 1978 Subdivision (Plat #H78- 23 replatted #H78-71), a part of government Lot 2 71 T 1 N - R 13W 120.0000 6/30/05 Frank Edward Rusk 50% x 12.5% Marathon 60% Section 12: E/2SE/4 7/01/05 L.S. Kurtz, Jr. and Adair Properties Union 40% and SW/4SE/4 50% x 12.5% 72 T1N-R13W 110.7200 1 0/22/2008 Marion E. OSkolkoff, trustee of the Marathon 60% Section 23:Lot 2 and Marion E. Oskolkoff 2004 Trust 100% x Union 40% Lot 6 and SE/4SW/4 12.5% 73 T1N-R13W 1 0.31 00 Wayne J. Woodhead and Ella Uncommitted Section 23: A part of Woodhead (H&W) 100% (Note - Government Lot 4 possibly also Ella Woodhead. trustee of described as Tracts A The Ella Woodhead Family Trust) and E of the Woodhead Subdivision platted in Plat #H-83- 110 74 T1N-R13W 7.9400 Robert N. Woodhead 100% Uncommitted Section 23: A part of Government Lot 4 described as Tract B of the Woodhead Subdivision platted in Plat #H-83-11 0 75 T1N-R13W 8.61 00 Terry Lee Woodhead 100% Uncommitted Section 23: A part of Government Lot 4 described as Tract C of the Woodhead Subdivision platted in Plat #H-83-11 0 Page 40 of 71 Ninilchik Unit Exhibit Reintegrated Falls Creek updated 2-5-05.xls Marathon = Marathon Oil Company Union = Union Oil Company of California EXHIBIT "A" NINILCHIK UNIT AREA, KENAI PENINSULA BOROUGH, ALASKA Tract No. Description of Lands Number of Serial Number & Basic Royalty & Ownership Percentage Overriding Royalty Working Interest Notes Acres Expiration Date of & Percentage & Percentage Lease PATENTED FEE LANDS 76 T 1 N - R 13W 7.7300 Dale Wayne Woodhead 100% Uncommitted Section 23: A part of Government Lot 4 described as Tract 0 of the Woodhead Subdivision platted in ( Plat #H-83-11 0 77 T 1N - R 13W 1.0000 Elbert E. Hamilton and Gloria M. Uncommitted Section 27: That part of Hamilton (H&W, TBE) 100% Lot 6 lying within the (possibly now James H. & Muriel R. N/2NE/4NE/4 Mead, husband & wife) 78 T1N-R13W 18.5600 2/28/2004 Pamela Vantress Living Trust 1/2 Marathon 60% Section 27: That part of dated 12/6/00 Union 40% Lot 6 lying within the Paula Lee Honchen Living Trust 1/2 S/2NE/4NE/4 a/d/a dated 11/9/01 S/2NE/4NE/4 79 T1N-R13W 55.5500 Maureen Elizabeth Milner 1/3 Marathon 60% Section 27: Lot 7 Brian Alfred Milner 1/3 Union 40% Anne Elizabeth Milner 1/3 30 T 1 N - R 13W 78.5500 4/1/2004 Janet M. Clucas 1/5 x 12.5% Marathon 60% Section 27: Lot 10 and Martha E. Ogren 1/5 x 12.5% Union 40% NE/4SE/4, except Tract Judith A. Johnson 1/5 x 12.5% #B-1 of Corea Bend Kathleen M. Jackinsky 1/5 x 12.5% Sundivision #3, plat Douglas F. Blossom 1/5 x 12.5% #2003-53 30A T 1 N - R 13W 6.8900 4/1/2004 Janet M. Clucas 1/5 x 12.5% Marathon 60% Section 27: Tract #B-1 Marta Denise Simpson & Javan Wayne Union 40% of Corea Bend Simpson & Alana Camille Simpson 1/5 Sundivision #3, plat x 12.5% #2003-53 Judith A. Johnson 1/5 x 12.5% Kathleen M. Jackinsky 1/5 x 12.5% DouQlas F. Blossom 1/5 x 12.5% J1 T1N-R13W 7.0000 Janet M. Clucas 1/5 x 12.5% Marathon 60% Section 27: That part of Martha E. Ogren 1/5 x 12.5% Union 40% the SE/4SE/4 lying to Judith A. Johnson 1/5 x 12.5% the east of the Sterling Kathleen M. Jackinsky 1/5 x 12.5% Hiqhwav DouQlas F. Blossom 1/5 x 12.5% Marathon = Marathon Oil Company Page 41 of 71 Union = Union Oil Company of California Ninilchik Unit Exhibit Reintegrated Falls Creek updated 2-5-05.xls EXHIBIT "A" NINILCHIK UNIT AREA, KENAI PENINSULA BOROUGH, ALASKA Tract No. Description of Lands Number of Acres Serial Number & Expiration Date of Lease Basic Royalty & Ownership Percentage Overriding Royalty Working Interest Notes & Percentage & Percentage PATENTED FEE LANDS 82 T 1 N - R 13W 7.9800 4/1/2004 Janet M. Clucas 1/5 x 12.5% Marathon 60% Section 27: A part of Martha E. Ogren 1/5 x 12.5% Union 40% the S/2SE/4 lying north Judith A. Johnson 1/5 x 12.5% and west of the Sterling Kathleen M. Jackinsky 1/5 x 12.5% Highway described as Douglas F. Blossom 1/5 x 12.5% Lots 1 ,2, 3 and 4 of the Corea Bend Subdivision (platted as Plat #H85-15) 83 T1N-R13W 2.9400 4/1/2004 Theadrata Williams 50% x 12.5% and Marathon 60% Section 27: A part of Celeste N. Williams 50% x 12.5% Union 40% the S/2SE/4 lying north and west of the Sterling Highway described as Lots 5 and 6 of the Corea Bend Subdivision (platted as Plat #H85-15) 84 T 1 N - R 13W 1.0600 4/1/2004 Gary & Judy Leibeg, co-trustees of the Marathon 60% Section 27: A part of Leibeg Family Trust dated 3/21/03 Union 40% the S/2SE/4 lying north and west of the Sterling Highway described as Lot 7 of the Corea Bend Subdivision (platted as Plat #H85- 15) 85 T1N-R13W 1.0800 4/1/2004 Robert Yates 100% x 12.5% Marathon 60% Section 27: A part of Union 40% the S/2SE/4 lying north and west of the Sterling Highway described as Lot 8 of the Corea Bend Subdivision (platted as Plat #H85- 15) Marathon:: Marathon Oil Company Page 42 of 71 Union:: Union Oil Company of California Ninilchik Unit Exhibit Reintegrated Falls Creek updated 2-5-05.xls EXHIBIT lOA" NINILCHIK UNIT AREA, KENAI PENINSULA BOROUGH, ALASKA Tract No. Description of Lands 86 87 88 89 Number of Acres Serial Number & Expiration Date of Lease Basic Royalty & Ownership Percentage Overriding Royalty Working Interest Notes & Percentage & Percentage PATENTED FEE LANDS T1N-R13W 1.4300 Alfred L. & Clara M. James 100% Uncommitted Section 27: A part of the S/2SE/4 lying north and west of the Sterling Highway described as Lot 9 of the Corea Bend Subdivision (platted as Plat #H85- 15) T1N-R13W 1.0100 4/1/2004 Les Lauinger and Marcy Lauinger Marathon 60% Section 27: A part of (H&W) 100% x 12.5% Union 40% the S/2SE/4 lying north and west of the Sterling Highway described as Lot 10 of the Corea Bend Subdivision (platted as Plat #H85- 15) T1N-R13W 1.0300 James Sheridan Crain Uncommitt,ed Section 27: A part of the S/2SE/4 lying north and west of the Sterling Highway described as Lot 11 of the Corea Bend Subdivision (platted as Plat #H85- 15) T1N-R13W 2.5700 Francis A. Ferguson & Mary A. Uncommitted Section 27: A part of Ferguson, husband and wife, tenants the S/2SE/4 lying north by entirety1 00% and west of the Sterling Highway described as Lots 12 and 13 of the Corea Bend Subdivision (platted as Plat #H85-15) Page 43 of 71 Ninilchik Unit Exhibit Reintegrated Falls Creek updated 2-5-05.xls Marathon = Marathon Oil Company Union = Union Oil Company of California EXHIBIT "A" NINILCHIK UNIT AREA, KENAI PENINSULA BOROUGH, ALASKA Tract No. Description of Lands Number of Serial Number & Basic Royalty & Ownership Percentage Overriding Royalty Working Interest Notes Acres Expiration Date of & Percentage & Percentage Lease PATENTED FEE LANDS 90 T1N-R13W 1.0400 1/6/2010 James L. Kenshalo and Christie C. Marathon 60% Section 27: A part of Kenshalo (H&W, TBE) 100% x 12.5% Union 40% the S/2SE/4 lying north and west of the Sterling Highway described as Lot14 of the Corea Bend Subdivision (platted as Plat #H85- 15\ 91 T 1 N - R 13W 1 .2500 William C. Milhoan 100% Uncommitted Section 27: A part of the S/2SE/4 lying north and west of the Sterling Highway described as Lot15 of the Corea Bend Subdivision (platted as Plat #H85- 15\ 92 T1N-R13W 1 .3600 Wayne Bumpus and Paula Bumpus Uncommitted Section 27: A part of (H&W) 100% the S/2SE/4 lying north and west of the Sterling Highway described as Lot16 of the Corea Bend Subdivision (platted as Plat #H85- 15) 93 T1N-R13W 2.5900 4/1/2004 Janet M. Clucas 1/5 x 12.5% Marathon 60% Section 27: A part of Martha E. Ogren 1/5 x 12.5% Union 40% the S/2SE/4 lying north Judith A. Johnson 1/5 x 12.5% and west of the Sterling Kathleen M. Jackinsky 1/5 x 12.5% Highway described as Douglas F. Blossom 1/5 x 12.5% Lots 17 and 18 of the Corea Bend Subdivision (platted as Plat #H85-15) Page 44 of 71 Ninilchik Unit Exhibit Reintegrated Falls Creek updated 2-5-05.xls Marathon = Marathon Oil Company Union = Union Oil Company of California Tract No. Description of Lands 94 95 96 97 EXHIBIT "A" NINILCHIK UNIT AREA, KENAI PENINSULA BOROUGH, ALASKA Number of Acres Serial Number & Expiration Date of Lease Basic Royalty & Ownership Percentage Overriding Royalty Working Interest Notes & Percentage & Percentage PATENTED FEE LANDS T1N-R13W 1 .1200 4/1/2004 Monte G. Krull, Sr.100% x 12.5% Marathon 60% Section 27: A part of Union 40% the S/2SE/4 lying north and west of the Sterling Highway described as Lot 19 of the Corea Bend Subdivision (platted as Plat #H85- 15\ T 1 N - R 13W 1.1600 4/1/2004 James L. Kenshalo and Christie C. Marathon 60% Section 27: A part of Kenshalo (H&W, TBE) 100% x 12.5% Union 40% the S/2SE/4 lying north and west of the Sterling Highway described as Lot20 of the Corea Bend Subdivision (platted as Plat #H85- 15) T 1 N - R 13W 3.1700 4/1/2004 Janet M. Clucas 1/5 x 12.5% * Marathon 60% Section 27: A part of Martha E. Ogren 1/5 x 12.5% Union 40% the S/2SE/4 lying north Judith A. Johnson 1/5 x 12.5% and west of the Sterling Kathleen M. Jackinsky 1/5 x 12.5% Highway described as Douglas F. Blossom 1/5 x 12.5% Lots 21,22,23 of the (Note - As to Janet Clucas only her Corea Bend interest may be owned by Francis Subdivision (platted as Ferguson as to Lots 21 & 22 and Jodie Plat #H85-15) A. Wilson as to Lot 23) T 1 N - R 13W 1 .1800 4/1/2004 Janet M. Clucas 1/5 x 12.5% Marathon 60% Section 27: A part of Martha E. Ogren 1/5 x 12.5% Union 40% the S/2SE/4 lying north Judith A. Johnson 1/5 x 12.5% and west of the Sterling Kathleen M. Jackinsky 1/5 x 12.5% Highway described as Douglas F. Blossom 1/5 x 12.5% Lot 24 of the Corea Bend Subdivision (platted as Plat #H85- 15\ Page 45 of 71 Ninilchik Unit Exhibit Reintegrated Falls Creek updated 2-5-05.xls Marathon = Marathon Oil Company Union = Union Oil Company of California Tract No. Description of Lands Number of Acres PATENTED FEE LANDS 98 T 1N - R 13W 44.3700 Section 27: All of the S/2SE/4 lying north and west of the Sterling Highway, less and except Lots 1 - 24, inclusive of Corea Bend Subdivision (platted as Plat #H-85- ... r\ T 1N - R 13W 81.7600 Section 33: That part of Government Lots 3 and 4 and the SE/4SE/4 lying east of Sterling l-linh'A/<:I" 99 EXHIBIT "A" NINILCHIK UNIT AREA, KENAI PENINSULA BOROUGH, ALASKA Serial Number & Expiration Date of Lease 4/1/2004 1/01/05 4/01/04 Page 46 of 71 Ninilchik Unit Exhibit Reintegrated Falls Creek updated 2-5-05.xls Basic Royalty & Ownership Percentage Overriding Royalty Working Interest Notes & Percentage & Percentage Janet M. Clucas 1/5 x 12.5% Martha E. Ogren 1/5 x 12.5% Judith A. Johnson 1/5 x 12.5% Kathleen M. Jackinsky 1/5 x 12.5% Douglas F. Blossom 1/5 x 12.5% Lois B. Jones 50% x 12.5% Michael Thomas Russ & Deborah Lee Russ (H&W) 48% x 12.5% Gaylord O. Smith & Luella Smith (H&W) 1% Basil S. Bolstridge & Elizabeth W. Rnl~trirlnp fl-fR.W\ 1°/n Marathon 60% Union 40% Marathon 60% Union 40% Uncommitted Marathon = Marathon Oil Company Union = Union Oil Company of California EXHIBIT "A" NINILCHIK UNIT AREA, KENAI PENINSULA BOROUGH, ALASKA Tract No. Description of Lands Number of Serial Number & Basic Royalty & Ownership Percentage Overriding Royalty Working Interest Notes Acres Expiration Date of & Percentage. & Percentage Lease PATENTED FEE LANDS 100 T1N-R13W 2.0800 1/1/2005 Michael Thomas Russ & Deborah Lee Marathon 60% Section 33: A part of Russ (H&W) 48% x 12.5% Union 40% Government Lots 3 and 4 and SE/4SE/4 lying west of the Sterling Highway more particularly described ( as Lots 1 and 2 of Seaside Terrace, platted in Plat #H82- 101, replatted as Lot 1 A in Plat #H89-5 David James Tyner 50% Uncommitted Gaylord O. Smith & Luella Smith (H&W) 1% Basil S. Bolstridge & Elizabeth W. Bolstridge (H&W) 1% 101 T 1 N - R 13W 9.3300 1/1/2005 Michael Thomas Russ & Deborah Lee Marathon 60% Section 33: A part of Russ (H&W) 48% x 12.5% Union 40% Government Lots 3 and 4 and SE/4SE/4 lying west of the Sterling Highway more particularly described as Lots 3, 4 and 5 of Seaside Terrace, platted in Plat #H82- 101 Alaska Trust Company, trustee of the Uncommitted Elisabeth Anne Cole Charitable Remainder Annuity Trust 50% Gaylord O. Smith & Luella Smith (H&W) 1% Basil S. Bolstridge & Elizabeth W. Bolstridae (H&W) 1% Page 47 of 71 Ninilchik Unit Exhibit Reintegrated Falls Creek updated 2-5-05.xls Marathon::: Marathon Oil Company Union::: Union Oil Company of California EXHIBIT "A" NINILCHIK UNIT AREA, KENAI PENINSULA BOROUGH, ALASKA Tract No. Description of Lands Number of Serial Number & Basic Royalty & Ownership Percentage Overriding Royalty Working Interest Notes Acres Expiration Date of & Percentage & Percentage Lease PATENTED FEE LANDS 102 T1N-R13W 2.9400 1/1/2005 Michael Thomas Russ & Deborah Lee Marathon 60% Section 33: A part of Russ (H&W) 48% x 12.5% Union 40% Government Lots 3 and 4 and SE/4SE/4 lying west of the Sterling Highway more particularly described as Lot 6 of Seaside Terrace, platted in Plat #H82-101 Sherri L. Rock, Daniel A. Rock, Sandra Uncommitted J. Rock and Timothy D. Rock each 25%x 50% Gaylord O. Smith & Luella Smith (H&W) 1% Basil S. Bolstridge & Elizabeth W. BolstridQe (H&W) 1 % 103 T 1 N - R 13W 1.9200 1/1/2005 Michael Thomas Russ & Deborah Lee Marathon 60% Section 33: A part of Russ (H&W) 48% x 12.5% Union 40% Government Lots 3 and 4 and SE/4SE/4 lying west of the Sterling Highway more particularly described as Lot 7 of Seaside Terrace, platted in Plat #H82-101 John S. Davis & Marsha D. Davis Uncommitted (H&W) 50% Gaylord O. Smith & Luella Smith (H&W) 1% Basil S. Bolstridge & Elizabeth W. Bolstridqe (H&W) 1% Page 48 of 71 Ninilchik Unit Exhibit Reintegrated Falls Creek updated 2-5-05.xls Marathon = Marathon Oil Company Union = Union Oil Company of California Tract No. Description of Lands Number of Acres PATENTED FEE LANDS 104 T 1N - R 13W 4.6700 Section 33: A part of Government Lots 3 and 4 and SE/4SE/4 lying west of the Sterling Highway more particularly described as Lot 8 of Seaside Terrace, platted in Plat #H82-101 105 T 1N - R 13W 5.2800 Section 33: A part of Government Lots 3 and 4 and SE/4SE/4 lying west of the Sterling Highway more particularly described as Lot 9 of Seaside Terrace, platted in Plat #H82-101 EXHIBIT "A" NINILCHIK UNIT AREA, KENAI PENINSULA BOROUGH, ALASKA Serial Number & Expiration Date of Lease 1/1/2005 1/1/2005 Page 49 of 71 Ninílchik Unit Exhibit Reintegrated Falls Creek updated 2-5-05.xls Basic Royalty & Ownership Percentage Overriding Royalty Working Interest Notes & Percentage & Percentage Michael Thomas Russ & Deborah Lee Russ (H&W) 48% x 12.5% Norman E. Seitz & Linda L. Seitz (H&W) 50% Gaylord O. Smith & Luella Smith (H&W) 1% Basil S. Bolstridge & Elizabeth W. BolstridQe (H&W) 1% Michael Thomas Russ & Deborah Lee Russ (H&W) 48O/¿ x 12.5% Kallie R. Mousaw 50% Gaylord O. Smith & Luella Smith (H&W) 1% Basil S. Bolstridge & Elizabeth W. BolstridQe (H&W) 1% Marathon 60% Union 40% Uncommitted Marathon 60% Union 40% Uncommitted ( ( Marathon = Marathon Oil Company Union = Union Oil Company of California Tract No. Description of Lands Number of Acres PATENTED FEE LANDS 106 T 1N - R 13W 2.5700 Section 33: A part of Government Lots 3 and 4 and SE/4SE/4 lying west of the Sterling Highway more particularly described as Lot 1 0 of Seaside Terrace, platted in Plat #H82-1 01 and the minerals underlying Seaside Court 107 T 1N - R 13W 2.5400 Section 33: A part of Government Lots 3 and 4 and SE/4SE/4 lying west of the Sterling Highway more particularly described as Lot 11 of Seaside Terrace, platted in Plat #H82-101 EXHIBIT "A" NINILCHIK UNIT AREA, KENAI PENINSULA BOROUGH, ALASKA Serial Number & Expiration Date of Lease 1/1/2005 1/1/2005 Page 50 of 71 Ninilchik Unit Exhibit Reintegrated Falls Creek updated 2-5-05.xls Basic Royalty & Ownership Percentage Overriding Royalty Working Interest Notes & Percentage & Percentage Michael Thomas Russ & Deborah Lee Russ (H&W) 48% x 12.5% Kenneth W. Battley 2/3 x 50% (note- Jeffrey G. Pasco may claim some of Battley's interest under Seaside Court) Patrick M. Davis 1/3 x 50% Gaylord O. Smith & Luella Smith (H&W) 1% Basil S. Bolstridge & Elizabeth W. Bolstridge (H&W) 1% Michael Thomas Russ & Deborah Lee Russ (H&W) 48% x 12.5% James E. Troutman & Susan E. Troutman (H&W) 50% Gaylord O. Smith & Luella Smith (H&W) 1% Basil S. Bolstridge & Elizabeth W. BolstridQe (H&W) 1 % Marathon 60% Union 40% Uncommitted Marathon 60% Union 40% Uncommitted Marathon = Marathon Oil Company Union = Union Oil Company of California EXHIBIT "A" NINILCHIK UNIT AREA, KENAI PENINSULA BOROUGH, ALASKA Tract No. Description of Lands Number of Serial Number & Basic Royalty & Ownership Percentage Overriding Royalty Working Interest Notes Acres Expiration Date of & Percentage & Percentage Lease PATENTED FEE LANDS 108 T1N-R13W 2.5100 1/1/05 Donald L. Caulkins & Denise D. Marathon 60% Section 33: A part of 2/1/06 Caulkins (H&W) 50% x 12.5% Union 40% Government Lots 3 and Michael Thomas Russ & Deborah Lee 4 and SE/4SE/4 lying Russ (H&W) 48% x 12.5% west of the Sterling Highway more particularly described as Lot 12 of Seaside Terrace, platted in Plat #H82-101 Gaylord O. Smith & Luella Smith (H&W) Uncommitted 1% Basil S. Bolstridge & Elizabeth W. Bolstridge (H&W) 1 % 109 T1N-R13W 2.1300 1/1/2005 Michael Thomas Russ & Deborah Lee Marathon 60% Section 33: A part of Russ (H&W) 48% x 12.5% Union 40% Government Lots 3 and 4 and SE/4SE/4 lying west of the Sterling Highway more particularly described as Lot 13 of Seaside Terrace, platted in Plat #H82-101 ( Donald L. Caulkins & Denise D. Uncommitted Caulkins (H&W) 50% Gaylord O. Smith & Luella Smith (H&W) 1% Basil S. Bolstridge & Elizabeth W. Bolstridqe (H&W) 1% Page 51 of 71 Ninilchik Unit Exhibit Reintegrated Falls Creek updated 2-5-05.xls Marathon = Marathon Oil Company Union = Union Oil Company of California Tract No. Description of Lands Number of Acres PATENTED FEE LANDS 110 T 1 N - R 13W 1.8700 Section 33: A part of Government Lots 3 and 4 and SE/4SE/4 lying west of the Sterling . Highway more particularly described as Lot 14 of Seaside Terrace, platted in Plat #H82-101 111 T 1N - R 13W 5.3000 Section 33: A part of Government Lots 3 and 4 and SE/4SE/4 lying west of the Sterling Highway more particularly described as Lots 15 & 16 of Seaside Terrace, platted in Plat #H82- 101 EXHIBIT "A" NINILCHIK UNIT AREA, KENAI PENINSULA BOROUGH, ALASKA Serial Number & Expiration Date of Lease 1/1/2005 1/1/2005 Page 52 of 71 Ninilchik Unit Exhibit Reintegrated Falls Creek updated 2-5-05.xls Basic Royalty & Ownership Percentage Overriding Royalty Working Interest Notes & Percentage & Percentage Michael Thomas Russ & Deborah Lee Russ (H&W) 48% x 12.5% Donald L. Caulkins & Michelle L. Caulkins (H&W) 50% Gaylord O. Smith & Luella Smith (H&W) 1% Basil S. Bolstridge & Elizabeth W. BolstridQe (H&W) 1% Michael Thomas Russ & Deborah Lee Russ (H&W) 48% x 12.5% Charles A. & Ann C. Musarra Trust dated 4/25/02 50% x 12.5% Gaylord O. Smith & Luella Smith (H&W) 1% Basil S. Bolstridge & Elizabeth W. Bolstridç¡e (H&W) 1% Marathon 60% Union 40% Uncommitted Marathon 60% Union 40% Uncommitted Marathon = Marathon Oil Company Union = Union Oil Company of California EXHIBIT "A" NINILCHIK UNIT AREA, KENAI PENINSULA BOROUGH, ALASKA Tract No. Description of Lands Number of Serial Number & Basic Royalty & Ownership Percentage Overriding Royalty Working Interest Notes Acres Expiration Date of & Percentage & Percentage Lease PATENTED FEE LANDS 112 T 1 N - R 13W 6.3900 1/1/2005 Michael Thomas Russ & Deborah Lee Marathon 60% Section 33: A part of Russ (H&W) 48% x 12.5% Union 40% Government Lots 3 and 4 and SE/4SE/4 lying west of the Sterling Highway more ( particularly described as Lots 17and 18 of Seaside Terrace, platted in Plat #H82- 101 Carol Ritter 50% Uncommitted Gaylord O. Smith & Luella Smith (H&W) 1% Basil S. Bolstridge & Elizabeth W. Bolstridge (H&W) 1 % 112A T 1 N - R 13W 3.0100 1/1/2005 Michael Thomas Russ & Deborah Lee Marathon 60% Section 33: A part of Russ (H&W) 48% x 12.5% Union 40% Government Lots 3 and 4 and SE/4SE/4 lying west of the Sterling Highway more particularly described as Lot 19 of Seaside Terrace, platted in Plat ( #H82-101 Kenai Peninsula Borough 50% Uncommitted Gaylord O. Smith & Luella Smith (H&W) 1% Basil S. Bolstridge & Elizabeth W. Bolstridge (H&W) 1% Page 53 of 71 Ninilchik Unit Exhibit Reintegrated Falls Creek updated 2-5-05.xls Marathon = Marathon Oil Company Union = Union Oil Company of California EXHIBIT "A" NINILCHIK UNIT AREA, KENAI PENINSULA BOROUGH, ALASKA Tract No. Description of Lands Number of Acres Serial Number & Expiration Date of Lease Basic Royalty & Ownership Percentage Overriding Royalty Working Interest Notes & Percentage & Percentage PATENTED FEE LANDS 113 T 1 N - R 13W 2.4800 1/1/2005 Michael Thomas Russ & Deborah Lee Section 33: A part of Russ (H&W) 48% x 12.5% Government Lots 3 and 4 and SE/4SE/4 lying west of the Sterling Highway more particularly described as Lot 20 of Seaside Terrace, platted in Plat #H82-101 C. Edward Jenkins 50% Gaylord O. Smith & Luella Smith (H&W) 1% Basil S. Bolstridge & Elizabeth W. BolstridQe (H&W) 1 % 114 T1N-R13W 3.8600 1/1/2005 Michael Thomas Russ & Deborah Lee Section 33: A part of Russ (H&W) 48% x 12.5% Government Lots 3 and 4 and SE/4SE/4 lying west of the Sterling Highway more particularly described as Lot 21 of Seaside Terrace, platted in Plat #H82-101 Kenai Peninsula Borough 50% Gaylord O. Smith & Luella Smith (H&W) 1% Basil S. Bolstridge & Elizabeth W. BolstridQe (H&W) 1 % 115 T1N-R13W 40.0000 1/9/2008 Mary R. Hawkins 75% x 12.5% Section 34: NE/4NW/4 Charles F. Hawkins 5% x 12.5% Richard B. Hawkins 5% x 12.5% Marguerite Hawkins 5% James Hawkins 5% Ian Hawkins, deceased 5% Page 54 of 71 Ninilchik Unit Exhibit Reintegrated Falls Creek updated 2-5-05.xls Marathon 60% Union 40% Uncommitted Marathon 60% Union 40% Uncommitted Marathon 60% Union 40% Uncommitted Marathon = Marathon Oil Company Union = Union Oil Company of California EXHIBIT II A" NINILCHIK UNIT AREA, KENAI PENINSULA BOROUGH, ALASKA Tract No. Description of Lands Number of Acres Serial Number & Expiration Date of Lease Basic Royalty & Ownership Percentage Overriding Royalty Working Interest Notes & Percentage & Percentage 116 117 118 119 120 PATENTED FEE LANDS T1S-R13W 40.0400 7/13/2003 Leon A. Windeler 100% x 12.5% Marathon 60% Section 4: Lot 4 Union 40% T 1 S - R 13W 0.6800 Susanne Faye Windeler 100% Uncommitted Section 5: That part of Government Lot 2 lying east of the Sterling HiQhwav T1S-R13W 2.0800 3/8/2011 Richard L. Millett & Juanita J. Millett Marathon 60% Section 5: A part of (H&W) 100% x 12.5% Union 40% Government Lot 2 more particularly described as Lots 1 & 17 of Sunset Bluffs Subdivision as platted in Plat #H-79-5 T1S-R13W 1 .5800 Robert D. Steinke & Linda L. Steinke Uncommitted Section 5: A part of (H&W) 100% Government Lot 2 more particularly described as Lot 2 of Sunset Bluffs Subdivision as platted in Plat #H-79-5 T1S-R13W 1.9900 Karen D. Maze 100% Uncommitted Section 5: A part of Government Lot 2 more particularly described as Lot 3 of Sunset Bluffs Subdivision as platted În Plat #H-79-5 Page 55 of 71 Ninilchik Unit Exhibit Reintegrated Falls Creek updated 2-S-05.xls Marathon;;:; Marathon Oil Company Union = Union Oil Company of California EXHIBIT "A" NINILCHIK UNIT AREA, KENAI PENINSULA BOROUGH, ALASKA Tract No. Description of Lands Number of Serial Number & Basic Royalty & Ownership Percentage Overriding Royalty Working Interest Notes Acres Expiration Date of & Percentage & Percentage Lease PATENTED FEE LANDS 121 T1S-R13W 2.3000 3/8/2011 Richard L. Millett & Juanita J. Millett Marathon 60% Section 5: A part of (H&W) 100% x 12.5% Union 40% Government Lot 2 more particularly described as Lot 4 of Sunset Bluffs Subdivision as platted in Plat #H-79-5 122 T1S-R13W 2.3700 Kathleen Kennedy 100% Uncommitted Section 5: A part of Government Lot 2 more particularly described as Lot 5 of Sunset Bluffs Subdivision as platted in Plat #H-79-5 123 T1S-R13W 3.0600 3/8/11 Richard L. Millett 50% x 12.5% Marathon 60% Section 5: A part of 9/1/11 Arthur T. Maze 50% x 12.5% Union 40% Government Lot 2 more particularly described as Lot 6 of Sunset Bluffs Subdivision as platted in Plat #H-79-5 124 T1S-R13W 2.0800 3/8/2011 Richard L. Millett & Juanita J. Millett Marathon 60% Section 5: A part of (H&W) 100% x 12.5% Union 40% Government Lot 2 more particularly described as Lot 7 of Sunset Bluffs Subdivision as platted in Plat #H-79-5 Page 56 of 71 Ninilchik Unit Exhibit Reintegrated Falls Creek updated 2-S-0S.xls Marathon::: Marathon Oil Company Union::: Union Oil Company of California Tract No. Description of Lands Number of Acres PATENTED FEE LANDS 125 T 1S - R 13W 14.7288 Section 5: A part of Government Lot 2 more particularly described as Lots 8, 9, 1 0 and 11 of Sunset Bluffs Subdivision as platted in Plat #H-79-5 and that part of Government Lot 2 lying under the roadbed of Sunset Drive 126 T 1S - R 13W 1.1700 Section 5: A part of Government Lot 2 more particularly described as Lot 12 of Sunset Bluffs Subdivision as platted in Plat #H-79-5 T 1S - R 13W 2.0700 Section 5: A part of Government Lot 2 more particularly described as Lot 13 and 14 of Sunset Bluffs Subdivision as platted in Plat #H-79-5 127 EXHIBIT "A" NINILCHIK UNIT AREA, KENAI PENINSULA BOROUGH, ALASKA Serial Number & Expiration Date of Lease 3/8/11 9/1/11 3/8/11 9/1/11 Page 57 of 71 Ninilchik Unit Exhibit Reintegrated Falls Creek updated 2-5-05.xls Basic Royalty & Ownership Percentage Overriding Royalty Working Interest Notes & Percentage & Percentage Richard L. Millett 50% x 12.5% Arthur T. Maze 50% x 12.5% John Inman & Dee Ann Inman (H&W) 100% Richard L. Millett 50% x 12.5% ArthurT. Maze 50% x 12.5% Marathon 60% Union 40% Uncommitted Marathon 60% Union 40% ( Marathon = Marathon Oil Company Union = Union Oil Company of California EXHIBIT "A" NINILCHIK UNIT AREA, KENAI PENINSULA BOROUGH, ALASKA Tract No. Description of Lands Number of Serial Number & Basic Royalty & Ownership Percentage Overriding Royalty Working Interest Notes Acres Expiration Date of & Percentage & Percentage Lease PATENTED FEE LANDS 128 T1S-R13W 1.0300 1/10/2010 Lawrence Allen 100% x 12.5% Marathon 60% Section 5: A part of Union 40% Government Lot 2 more particularly described as Lot 15 of Sunset Bluffs Subdivision as platted in Plat #H-79-5 129 T1S-R13W 1.0000 3/8/11 Richard L. Millett 50% x 12.5% Marathon 60% Section 5: A part of 9/1/11 Arthur T. Maze 50% x 12.5% Union 40% Government Lot 2 more particularly described as Lot 16 of Sunset Bluffs Subdivision as platted in Plat #H-79-5 _ 130 TiS - R 13W Section 5: 8.4000 7/13/2003 Leon A. Winde/er 100% x 12.5% Marathon 60% Lot 1 of Block 1 of Windeler Union 40% Subdivision and the mineral rights underlying that part of the Sterling Highway and Leon Windeler Highway and Persons Drive, in so far as those roads lie in GLO Lot 1 131 T1S-R13W 4.1495 Martha Gage Windeler Uncommitted Section 5: That part of (possibly Susanne Faye Windeler) Government Lot 2 lying under the roadbed of the Sterling Highway and under the Leon Windeler Highway 132 T1S-R13W 29.6000 7/13/2003 Jack A. Windeler Marathon 60% Section 5: That part of Union 40% Government Lot1 described as Tract A of Windeler Subdivision Page 58 of 71 Ninilchik Unit Exhibit Reintegrated Falls Creek updated 2-5-05.xls Marathon = Marathon Oil Company Union = Union Oil Company of California EXHIBIT "A" NINILCHIK UNIT AREA, KENAI PENINSULA BOROUGH, ALASKA Tract No. Description of Lands Number of Serial Number & Basic Royalty & Ownership Percentage Overriding Royalty Working Interest Notes Acres Expiration Date of & Percentage & Percentage Lease PATENTED FEE LANDS 132A T 1 S - R 13W 40.0000 7/13/2003 Jack A. Windeler 1/4 Marathon 60% Section 5: All of the Honora Windeler Drew 1/4 Union 40% SE/4NE/4 Ronald Ord Windeler 1/4 Susanne Faye Windeler 1/4 133 T 1 S - R 13W 2.0000 7/13/2003 Ronald Ord Windeler 100% x 12.5% Marathon 60% Section 5: Lot 2 of Union 40% Block 1 of Windeler Subdivision 134 T 1 S - R 13W 3.8679 7/13/2003 Honora Roselyn Windeler 100% x Marathon 60% Section 5: That part of 12.5% Union 40% Government Lot 2 more particularly described as Block 2, Lot1 of Windeler Subdivision as platted in Plat #H-74-1526 135 T 1 S - R 13W 126.6300 9/1/2005 Wayne Findley & E. Irene Findley Marathon 60% Section 5: Government (H&W) 100% x 12.5% Union 40% Lots 3 and 4 and NE/4SW/4 Page 59 of 71 Ninilchik Unit Exhibit Reintegrated Falls Creek updated 2-5-05.xls Marathon::; Marathon Oil Company Union::; Union Oil Company of California Tract No. Description of Lands Number of Acres PATENTED FEE LANDS 136 T 1S - R 13W 104.6300 Section 5: A part of the SW/4NE/4 more particularly described as Lots 1, 3,5,6,9,15,16, 17, and 18 of Bud's Acres Subdivision as platted in Plat #H85-69 and the NW/4SE/4 and the NE/4SE/4 a/d/a Tract A and B, respectively, of Herman Tracts Subdivision as platted in Plat #H-95-36 including the minerals under the Sterling Highway and Bonnard Circle, Fellin Lane and Herman Drive in so far as they lie within SW/4NE/4 & N/2SE/4 136A T 1S ~ R 13W 2.8100 Section 5: Lots 11 & 12 of Bud's Acres Subdivision as platted in plat #H-85-69 T 1 S - R 13W 1.5700 Section 5: Lot10 of Bud's Acres Subdivision as platted in plat #H-85-69 T 1S - R 13W 3.4900 Section 5: Lots 13 & 14 of Bud's Acres Subdivision as platted in plat #H-85-69 136B 136C EXHIBIT "A" NINILCHIK UNIT AREA, KENAI PENINSULA BOROUGH, ALASKA Serial Number & Expiration Date of Lease 3/19/2008 3/19/2008 3/19/2008 3/19/2008 Page 60 of 71 Ninilchik Unit Exhibit Reintegrated Falls Creek updated 2-5-05.xls Basic Royalty & Ownership Percentage Overriding Royalty Working Interest Notes & Percentage & Percentage Clarence Eugene Herman 100% x 12.5% James C. & Kay E. Forrest 100% x 12.5% Mark S. & LeAnn Herman (H&W) 100% x 12.5% Ed J. & Jean F. Adamson (H&W) 100% x 12.5% Marathon 60% Union 40% Marathon 60% Union 40% Marathon 60% Union 40% Marathon 60% Union 40% Marathon::: Marathon Oil Company Union::: Union Oil Company of California EXHIBIT "A" NINllCHIK UNIT AREA, KENAI PENINSULA BOROUGH, AlASKA Tract No. Description of Lands Number of Serial Number & Basic Royalty & Ownership Percentage Overriding Royalty Working Interest Notes Acres Expiration Date of & Percentage & Percentage Lease PATENTED FEE lANDS 137 T 1 S - R 13W 2.0000 12/15/2009 Earl Bearden 100% x 12.5% Marathon 60% Section 5: A part of the Union 40% SW/4NE/4 more particularly described as Lot 2 of Bud's Acres Subdivision as platted in Plat #H85-69 138 T 1S - R 13W 2.5000 12/16/2009 Clarence Eugene Herman 100% x Marathon 60% Section 5: A part of the 12.5% Union 40% SW/4NE/4 more particularly described as Lot 4 of Bud's Acres Subdivision as platted in Plat #H85-69 139 T 1 S - R 13W 1.5000 12/16/2009 Clarence Eugene Herman 100% x Marathon 60% Section 5: A part of the 12.5% Union 40% SW/4NE/4 more particularly described as Lot 7 of Bud's Acres Subdivision as platted in Plat #H85-69 140 T 1S - R 13W 1 .5000 Steven Vanek, Jr. & Monica J. Vanek Uncommitted Section 5: A part of the (H&W) 50% SW/4NE/4 more Scott & Karen Bennett (H&W) 50% particularly described as Lot 8 of Bud's Acres Subdivision as platted in Plat #H85-69 141 T1S-R13W 4.0000 Evelyn Terry McLaughlin 50% Uncommitted Section 5: Patricia Terry Lodge 1/3 N/2NW /4SW /4SW /4 Lila Terry Hanson 1/6 less the west 132' thereof Page 61 of 71 Ninilchik Unit Exhibit Reintegrated Falls Creek updated 2-5-05.xls Marathon::: Marathon Oil Company Union::: Union Oil Company of California EXHIBIT "A" NINILCHIK UNIT AREA, KENAI PENINSULA BOROUGH, ALASKA Tract No. Description of Lands Number of Serial Number & Basic Royalty & Ownership Percentage Overriding Royalty Working Interest Notes Acres Expiration Date of & Percentage & Percentage Lease PATENTED FEE LANDS 141A T1S-R13W 1.0000 James C. Sanders Uncommitted Section 5: The west 132' of the N/2NW /4SW /4SW /4 142 T1S-R13W 35.0000 9/15/2004 Paul H. Dionne & Susan M. Dionne Intrepid Production Marathon 60% Section 5: 100% x 16.66667% Company 5.3333% Union 40% S/2SW /4SW /4 & NE/4SW/4SW/4 & S/2NW /4SW /4SW /4 143 T1S-R13W 40.0000 11/22/2001 Henry George Gain & Flora Eugenia Uncommitted Section 5: SE/4SW/4 Gain (H&W) 100% x 12.5% 144 T1S-R13W 10.0600 1 0/5/2002 Bea Bachner 100% x 12.5% Marathon 60% Section 6: Lot 1 Union 40% 145 T1S-R13W 49.5200 9/15/2004 Paul H. Dionne & Susan M. Dionne Intrepid Production Marathon 60% Section 6: Lot 2 100% x 16.66667% Company 5.3333% Union 40% 146 T1S-R13W 40.0000 9/15/2004 Paul H. Dionne & Susan M. Dionne Intrepid Production Marathon 60% Section 7: NE/4NE/4 100% x 16.66667% Company 5.3333% Union 40% 147 T1S-R13W 40.0000 12/14/10 Paul Joseph Rochon 1/5 x 12.5% Marathon 60% Section 7: SE/4NE/4 12/14/10 Linda Marie McCool 1/5 x 12.5% Union 40% 1/2/11 Ward Randall Grilley 1/5 x 12.5% David Roy Reaves 1/5 Uncommitted Carl Wayne Kinkead 1/5 148 T1S-R13W 8.8400 1/26/2005 James R. Sabrowski 1/2 x 12.5% Marathon 60% Section 7: That part of Leonard J. Sabrowski & Juanita Union 40% the NE/4SW/4 more Sabrowski Revocable Trust 1/2 x particularly described 12.5% as Lot 1 of Tieman Subdivision as platted in Plat #H-85-129 Page 62 of 71 Ninilchik Unit Exhibit Reintegrated Falls Creek updated 2-5-05.xls Marathon;;:: Marathon Oil Company Union;;:: Union Oil Company of California Tract No. Description of Lands Number of Acres PATENTED FEE LANDS 149 T 1S - R 13W 20.6200 Section 7: That part of the NE/4SW/4 more particularly described as Lot 2 of Tieman Subdivision as platted in Plat #H-85-129 T 1S - R 13W 10.5400 Section 7: That part of the NE/4SW/4 more particularly described as Lot 3 of Tieman Subdivision as platted in Plat #H-85-129 a/d/a E/2NE/4NE/4SW/4 and that part of the E/2SE/4NE/4SW 14 lying north of the northerly right of way of the Sterling Highway 150 151 T1S-R13W 31.7100 Section 7: That part of the NW 14SE/4 lying north of the Sterling Highway, less and except that part described as Lot 1 of Aurora Vista Subdivision platted in PI;:¡t #H-96-13 EXHIBIT "A" NINILCHIK UNIT AREA, KENAI PENINSULA BOROUGH, ALASKA Serial Number & Expiration Date of Lease Page 63 of 71 Ninilchik Unit Exhibit Reintegrated Falls Creek updated 2-5-05.xls Basic Royalty & Ownership Percentage Overriding Royalty Working Interest Notes & Percentage & Percentage Laura Lee Tieman Life Estate (W. Lee McKinley, remainderman) 100% Boyd Daniel Leman 100% Kenai Peninsula Borough 100% Uncommitted Marathon 60% Union 40% Uncommitted ( ( Marathon = Marathon Oil Company Union = Union Oil Company of California Tract No. Description of Lands Number of Acres PATENTED FEE LANDS 152 T 1S - R 13W 1.2900 Section 7: That part of the NW/4SE/4 lying north of the Sterling Highway more particularly described as Lot 1 of Aurora Vista Subdivision platted in Plat #H-96-13 153 T 1S - R 13W 7.0000 Section 7: That part of the NW /4SE/4 lying south of the Sterling Hiqhwav T 1S - R 13W 13.0000 Section 7: That part of the NE/4SE/4 lying north of the Sterling Hiç hway T 1S - R 13W .27.0000 Section 7: That part of the NE/4SE/4 lying south of the Sterling Hiqhwav T 1S - R 13W 77.4600 Section 7: That part of the E/2SW /4 lying south of the Sterling Highway and all of the SW /4SE/4 less and except Lots 41 & 42 of Summerset Acres Subdivision (plat #H86- 45) 154 155 156 EXHIBIT "A" NINILCHIK UNIT AREA, KENAI PENINSULA BOROUGH, ALASKA Serial Number & Expiration Date of Lease Page 64 of 71 Ninilchik Unit Exhibit Reintegrated Falls Creek updated 2-5-05.xls Basic Royalty & Ownership Percentage Overriding Royalty Working Interest Notes & Percentage & Percentage Aurora Communications International, Inc. 100% Steve Bates and Rebecca Bates (H&W, TBE) lIiamna International, Ltd. 100% (Note: Tom E. & Janet L. McCormick may also own some interest) Shirley J. Provence 100% Laura Lee Tieman Life Estate (W. Lee McKinley, remainderman) 100% Uncommitted Uncommitted Uncommitted Uncommitted Uncommitted Marathon = Marathon Oil Company Union = Union Oil Company of California EXHIBIT "A" NINILCHIK UNIT AREA, KENAI PENINSULA BOROUGH, ALASKA Tract No. Description of Lands Number of Serial Number & Basic Royalty & Ownership Percentage Overriding Royalty Working Interest Notes Acres Expiration Date of & Percentage & Percentage Lease PATENTED FEE LANDS 156A T1S-R13W 2.5400 Nancy McKinley 1/3 Uncommitted Section 7: Lots 41 & 42 Sally Kent 1/3 of Summerset Acres Jane Walsh 1/3 Subdivision (plat #H86- 45) 157 T1S-R13W 80.0000 11/22/2001 Henry George Gain & Flora Eugenia Uncommitted Section 8: N/2NW/4 Gain (H&W) 100% x 12.5% 158 T1S-R13W 17.8850 12/14/10 Paul Joseph Rochon 1/5 x 12.5% Marathon 60% Section 8: That part of 12/14/10 Linda Marie McCool 1/5 x 12.5% Union 40% the SW/4NW/4Iying 1/2/11 Ward Randall Grilley 1/5 x 12.5% west of the Sterling Highway a/d/a Lots 5 & 6 of the E. Mounts Subdivision as platted in Dlat #H-81-23 David Roy Reaves 1/5 Uncommitted Carl Wayne Kinkead 1/5 159 T15-R13W 22.1150 1/2/2011 Carolyn O. Reifsnyder 100% x 12.5% Marathon 60% Section 8: All of the Union 40% SW /4NW /4 lying east of the Sterling Highway a/d/a Lots 1,2,3 & 4 of E. Mounts Subdivision as platted in plat #H-81- ?3 ( 160 T 15 - R 13W 40.0000 7/31/2004 Elizabeth B. Quick 100% x 12.5% Marathon 60% Section 8: NW/4SW/4 Union 40% 161 T 15 - R 13W 40.0000 Laura Lee Tieman Life Estate (W. Lee Uncommitted Section 18: NE/4NW/4 McKinley, remainderman) 100% 162 T1S-R14W 35.9800 Carol A. Wilson 1/5 Marathon 60% Section 12: Lot 2 Katherine Lunne 1/5 Union 40% Patricia Webster 1/5 George A. Gates 1/5 J~h;:¡rles F. ~ates 1/5 Page 65 of 71 Ninilchik Unit Exhibit Reintegrated Falls Creek updated 2-5-05.xls Marathon = Marathon Oil Company Union = Union Oil Company of California EXHIBIT "A" NINILCHIK UNIT AREA, KENAI PENINSULA BOROUGH, ALASKA Tract No. Description of Lands Number of Serial Number & Basic Royalty & Ownership Percentage Overriding Royalty Working Interest Notes Acres Expiration Date of & Percentage & Percentage Lease PATENTED FEE LANDS 163 T1S-R14W 33.2100 Carol A. Wilson 1/5 Marathon 60% Section 13: Lot 1 Katherine Lunne 1/5 Union 40% Patricia Webster 1/5 George A. Gates 1/5 r.h;:¡rIA~ F n;:¡tA~ 1 Hi 164 T1S-R14W 80.0000 Darwin E. & Kaye S. Waldsmith 75% Uncommitted Section 13: S/2SW/4 Gloria Millet 8.33333% George Maki 8.33333% Edward Lee Maki 8.33333% 165 T1S-R14W 24.7200 5/29/2005 Stephen W. Wackowski 46.15% x Marathon 60% Section 14: Tracts A & 12.5% Union 40% B and the north 6.34 Thomas P. Brady 3.85% x 12.5% acres of Tract C of the Cynthia Hatton Baganov 50% x 12.5% Heavenly Sights Subdivision (Plat #H- 96-17) ~/d/~ GI 0 lot 1 166 T1S-R14W 4.4200 2/22/2004 Carolee Pickett 25% Marathon 60% Section 13: Tracts 1 &2 Union 40% of Catledge-Wilson Subdivision, Tract A, PI~t ii7fV>.? nAirlrA F &. .John n Mr.r.nmh~ 7fi% I J nr.nmmittArI 167 T1S-R14W 1.9500 2/22/2004 Carolee Pickett 25% Marathon 60% Section 13: Tract 3 of Union 40% Catledge-Wilson Subdivision, Tract A, PI::'It ii7fV>.? 4/11/2005 Walter L. Wilson 75% Marathon 60% Union 40% 168 T1S-R14W 4.3900 2/22/2004 Carolee Pickett 25% Marathon 60% Section 13: Tracts 4. 5, Union 40% 8 & 11 of Catledge- Wilson Subdivision, Tr;:¡r.t Ä. PI:=It #7R-?? 8/8/2005 Gailan B. & Carol Lane-Johnson 75% Marathon 60% I Inion 40% Page 66 of 71 Ninilchik Unit Exhibit Reintegrated Falls Creek updated 2-5-05.xls Marathon::: Marathon Oil Company Union::: Union Oil Company of California EXHIBIT "A" NINILCHIK UNIT AREA, KENAI PENINSULA BOROUGH, ALASKA Tract No. Description of Lands Number of Serial Number & Basic Royalty & Ownership Percentage Overriding Royalty Working Interest Notes Acres Expiration Date of & Percentage & Percentage Lease PATENTED FEE LANDS 169 T1S-R14W 2.2400 2/22/2004 Carolee Pickett 25% Marathon 60% Section 13: Tracts 6 & Union 40% 7 of Catledge-Wilson Subdivision, Tract A, PI~t H.7R-?? 6/14/2005 Robert Flygenring & Cheryl King 75% Marathon 60% I Inion 40% 170 T1S-R14W 1.0600 2/22/2004 Carolee Pickett 25% Marathon 60% Section 13: Tract 9 of Union 40% Catledge-Wilson Subdivision, Tract A, PI~t H.7R.?? Robbv J. & Selen:::¡ n. ~ordo 175% Uncommitted 171 T1S-R14W 1.0700 2/22/2004 Carolee Pickett 25% Marathon 60% Section 13: Tract 10 of Union 40% Catledge-Wilson Subdivision, Tract A, PI~t H.7R.~? 4/24/2005 Michael Roy Smith 75% Marathon 60% I Jnion 40% 172 T1S-R14W 2.7800 2/22/2004 Carolee Pickett 25% Marathon 60% Section 13: Tract 12 of Union 40% Catledge-Wilson Subdivision, Tract A, Plat #78-32 Gary & Mama Andes 37.5% Uncommitted ( Gale R. Graham 37.5% 173 T1S-R14W 3.1950 2/22/2004 Carolee Pickett 25% Marathon 60% Section 13: Minerals 1/29/03 Walter L. Wilson 75% Union 40% underlying streets and roads in Catledge- Wilson Subdivision, Tract A, Plat #78-32 173A T1S-R14W 1 .4340 2/22/2004 Carolee Pickett 25% Marathon 60% Section 13: Tract 13 of 4/24/05 William D. Fisher Living Trust 75% Union 40% Catledge-Wilson Subdivision, Tract A, Plat #78-32 Marathon = Marathon Oil Company Page 67 of 71 Union = Union Oil Company of Càlifornia Ninilchik Unit Exhibit Reintegrated Falls Creek updated 2-5-05.xls Tract No. Description of Lands Number of Acres 174 175 176 176A 176B 176C PATENTED FEE LANDS T 1S - R 14W 47.3490 Section 13: Tracts B&C of Catledge Subdivision, plat #74- 2075 T 1 S - R 14 W 1 .9900 Section 13: Tract D of Catledge Subdivision, plat #74-2075 T 1S - R 14W 23.2000 Section 13: That part of GLO Lot 2, SE/4NW4 described as the Unsubdivided remainder of Red Bluff Terrace, except Lots 9, 18.19. ???3 &?4 of T 1S - R 14W 1.0000 Section 13: Lot 9 of Red Bluff Terrace Addition No.2 (plat # H- 2004-42) T 1S - R 14W 3.0900 Section 13: Lots 22, 23 & 24 of Red Bluff Terrace Addition No.2 (plat # H-2004-42) T 1S - R 14W 2.0000 Section 13: Lots 18 & 19 of Red Bluff Terrace Addition NO.2 (plat # H- 2004-42) EXHIBIT "A" NINILCHIK UNIT AREA, KENAI PENINSULA BOROUGH, ALASKA Serial Number & Expiration Date of Lease 2/22/2004 2/22/2004 2/22/2004 7/1/11 2/22/2004 7/1/11 2/22/2004 7/1/11 2/22/2004 7/1/11 Page 68 of 71 Ninilchik Unit Exhibit Reintegrated Falls Creek updated 2-5-05.xls Basic Royalty & Ownership Percentage Overriding Royalty Working Interest Notes & Percentage & Percentage Carolee Pickett 25% Darwin Waldsmith 75% Carolee Pickett 100% Carolee Pickett 25% John L. Stengl 25% Gregory A. & Darlene M. Rozak 25% Judith Ballentine 25% Carolee Pickett 25% David M. & Jeanine B. Shea 50% Judith Ballentine 25% Carolee Pickett 25% John L. Stengl 25% Theodore W. Rozak Living Trust dated October 15, 1997 25% Judith Ballentine 25% Carolee Pickett 25% John L. Stengl 25% Larry M. Rozak 25% Judith Ballentine 25% Marathon 60% Union 40% Uncommitted Marathon 60% Union 40% Marathon 60% Union 40% Uncommitted Marathon 60% Union 40% Uncommitted Marathon 60% Union 40% Uncommitted Marathon 60% Union 40% Uncommitted Marathon::: Marathon Oil Company Union::: Union Oil Company of California EXHIBIT "A" NINILCHIK UNIT AREA, KENAI PENINSULA BOROUGH, ALASKA Tract No. Description of Lands Number of Serial Number & Basic Royalty & Ownership Percentage Overriding Royalty Working Interest Notes Acres Expiration Date of & Percentage & Percentage Lease PATENTED FEE LANDS 177 T1S-R14W 1 .0000 2/22/2004 Carolee Pickett 25% Marathon 60% Section 13: Lot 6, John L. & Nancy Stengl 25% Union 40% Block 1. Red Bluff Gregory A. & Darlene Rozak 25% Terrace Subdivision Addition No.1. Plat #86-58 7/1/2011 Judith Ballentine 25% Uncommitted 178 T1S-R14W 1 .0000 2/22/2004 Carolee Pickett 25% Marathon 60% Section 13: Lot 3. John L. & Nancy Stengl 25% Union 40% Block 1. Red Bluff Gregory A. & Darlene Rozak 25% Terrace Subdivision Addition No.1. Plat #86-58 Judith A. Ballentine 25% Uncommitted 179 T1S-R14W 1 .0000 2/22/2004 Carolee Pickett 25% Marathon 60% Section 13: Lot 2. Union 40% Block 1, Red Bluff Terrace Subdivision Addition No.1. Plat #86-58 David R. Kodysz & Jean R. Gregorich Uncommitted 75% 180 T1S-R14W 1.6300 2/22/2004 Carolee Pickett 25% Marathon 60% Section 13: Lot 2. Robert James Clucas 75% Union 40% Block 3. Red Bluff ( Terrace Subdivision , Plat #88-57 181 T1S-R14W 1 .3000 2/22/2004 Carolee Pickett 25% Marathon 60% Section 13: Lot 3, Union 40% Block 3, Red Bluff Terrace Subdivision , Plat #86-57 Michael S. & Cheryl B. Sutton 75% Uncommitted Page 69 of 71 Ninilchik Unit Exhibit Reintegrated Falls Creek updated 2-5-05.xls Marathon::: Marathon Oil Company Union::: Union Oil Company of California ITract No. Description of Lands Number of Acres PATENTED FEE LANDS 182 T 1S - R 14W 9.2500 Section 13: Lots 1,4,5,7 & 8, Block 3, Red Bluff Terrace Subdivision Addition No.1, Plat #86-57 & Lot 4, Block 2 & Lot 1, Block 3, Red Bluff Terrace Subdivision Plat #86-57 183 T 1S - R 14W 0.9150 Section 13: A tract in NE/4SW/4 lying east of Sterling Highway, beginning at a point on the centerline of the Sterling Highway bearing north 51 deg. 54 min. 32 sec. East a distance of 2273.5' from SW/c of 13-1 S- 14W; TH. North 24 deg. 49 min. 45 sec. east along said centerline 109.6'; TH. south 89 deg. 20 min. 15 sec. east 376.4'; TH. south 0 deg. 39 min. 45 sec. west 1 DO'; TH. north 89 deg. 20 min. 15 sec. west A?1 ':\' tn D()R EXHIBIT "A" NINILCHIK UNIT AREA, KENAI PENINSULA BOROUGH, ALASKA Serial Number & Expiration Date of Lease 2/22/2004 7/1/11 Page 70 of 71 Ninilchik Unit Exhibit Reintegrated Falls Creek updated 2-5-05.xls Basic Royalty & Ownership Percentage Overriding Royalty Working Interest Notes & Percentage & Percentage Carolee Pickett 25% John L. Stengl 25% Gregory A. & Darlene M. Rozak 25% Judith A. Ballentine 25% William Kenneth DeFrang & Irene Marie DeFrang (H&W, TBE) 100% (possibly John & Ethel Pherson own an interest) Marathon 60% Union 40% Uncommitted Uncommitted Marathon;:;: Marathon Oil Company Union = Union Oil Company of California Tract No. Description of Lands 184 184A EXHIBIT "A"" NINILCHIK UNIT AREA, KENAI PENINSULA BOROUGH, ALASKA Number of Acres Serial Number & Expiration Date of Lease Notes Basic Royalty & Ownership Percentage Overriding Royalty Working Interest & Percentage & Percentage PATENTED FEE LANDS T 1S - R 14W 7.9970 Section 13: That part of the SE/4NW /4 & NE/4SW/4Iying east of the Sterling Highway, less and except that Tract shown as Tract #183 of this exhibit (being the 0.915 acre DeFrang tract) and less and except Tract "A" of Pherson Acres Subdivision, plat H- 2001-19 John Pherson and Ethel Pherson (H&W) 100% Uncommitted T 1S - R 14W 5.5530 Section 13: Tract "A" of Pherson Acres Subdivision, plat #H- 2001-19 Tim Moerlein Uncommitted PATENTED FEE TOTAL: 3397.0253 Legal Description of Ninilchik Unit Tract #44-L: That certain real property situated in the Third Judicial District, Kenai Recording District, State of Alaska, within TIN, RI2W, S.M., Alaska. Said property which is within the Clam Gulch Subdivision is more particularly described as beginning at the one quarter comer of Sections 29 & 32; THENCE South 379.1 feet to the West right of way of the Sterling Highway as shown on the plat of said Clam Gulch Subdivision; THENCE South 44°13' West along right of way, 1011.5 feet to the beginning of a curve, the center of which bears South 45°47' East 1946.3 feet; THENCE following the arc of said curve Southwesterly a distance ()f200.4 feet to Comer 1, the true point of beginning of said real property; THENCE continuing Southwesterly, along the arc of said curve, a distance of 385.4 feetto Comer 2; THENCE North 65°13' West approximately 305 feet to the west one-sixteenth line of Section 32 to Comer 3; THENCE North 0°07' West approximately 130 feet to the Northwest one-sixteenth comer of Section 32 to Comer 4; THENCE West along the North one-sixteenth line of Section 32 approximately 438 feet to the line of Mean High Water ()fCook Inlet to Comer 5; THENCE North 20°00' East along Mean High Water 225.8 feet to Comer 6; THENCE East 695.0 feet to Comer 7; THENCE South 45°47' East 209.3 feet to Comer I, the point of beginning. The parcel contains 5.23 acres, more or less. Page 71 of 71 Ninilchik Unit Exhibit Reintegrated Falls Creek updated 2-S-0S.xls Marathon := Marathon Oil Company Union := Union Oil Company of California ~ Alaska Business Unit , , M MARATHON ~ Marathon Oil Company P.O. Box 1949 Kenai, AK 99611-1949 Telephone 907/283-1311 Fax 907/283-6175 February 6, 2006 .RECEIVED FEB 0 8 2006 Winton Aubert AOGCC 333 West 7th Ave Suite 100 Anchorage, AK 99501 Alaska Oil & Gas Cons. Commission Anchorage Dear Mr. Aubert: Attached and submitted for your records is the Form 10-404 to add Tyonek perforations and fracture stimulate a Tyonek interval in the Susan Dionne #2 well. This well is shut in awaiting work to cement squeeze and then reperforate two water productive Tyonek intervals and add a new Tyonek interval under a separate Form 10-403 that was recently approved. Also attached for your records are the current well schematic, the final directional survey, and the operations history for the completions work performed with and without the drilling rig. This well was flow tested at 650 Mcfd and 50 BWPD at 350 psi FTP during the completion but was unable to sustain gas production to the line pressure of 800 psi due to liquid loading. If you would like any other information, please contact me at 394-3060 or kdwalsh(éùmarathonoil.com. Sincerely, l~b.vJ~ Ken D. Walsh Senior Production Engineer Enclosures STATE OF ALASKA ALAS~OIL AND GAS CONSERVATION COMMI~')N REPORT OF SUNDRY WELL OPERATIONS FEe 0 8 2006 Alaska Oil & Gas Cons C '. · ommïss,on Anchorage 1. Operations Abandon U Performed: Alter Casing 0 Change Approved Program 0 2. Operator Name: Repair Well U Pull Tubing 0 Operat. Shutdown 0 Plug Perforations U Perforate New Pool 0 Perforate 0 4. Current Well Class: Development 0 Stratigraphic 0 Stimulate l.j Other U Waiver 0 Time Extension 0 Re-enter Suspended Well 0 5. Permit to Drill Number: Marathon Oil Company 99519- Exploratory 0 Service 0 6. API Number: 204-107 P. O. Box 196168, Anchorage, AK 6168 7. KB Elevation (ft): 3. Address: 8. Property Designation: 50-133-20541 9. Well Name and Number: Ninilchik Unit/Susan Dionne #2 156' KB (21' AGL) 10. Field/Pool(s): ADL 359242/1 &ADL 389180 11. Present Well Condition Summary: Ninilchik/Tyonek Total Depth Effective Depth Casing Structural Conductor Surface Intermediate Production Liner Perforation depth: measured 11,094' feet true vertical 8007' feet measured 10,970' feet true vertical 7890' feet Length Size MD 133' 20" 133' 1906' 95/8" 1927' 5921' 7" 5942' 11,073' 4-1/2" 11094' Plugs (measured) 10580'/10620'/10770' Junk (measured) 0 TVD Burst Collapse 133' N/A N/A 1575' 6870 4750 3420' 7240 5410 8007' 8430 7500 Measured depth: 10796-10854',10671-10707',10242-10330', 10161-10181', 10064-10140', 10009-10031', 9727-9747', 7766-7826' True Vertical depth: 7728-7782',7612-7646',7219-7299', 7145-7163', 7056-7125', 7006-7026', 6750-6768', 4962-5016' N/A Tubing: (size, grade, and measured depth) o o Baker 4-1/2" Midstrinq ZXP Packers and SSSV (type and measured depth) 5733' 12. Stimulation or cement squeeze summary: Intervals treated (measured): 10,671'-10,707' MD (36') Fracture Stimulated RBDMS BFL FEE 0 8 2D06 Treatment descriptions including volumes used and final pressure: Fraced with wi BJ Lightning_V_2200 wtr based system at 15-16 BPM. Ramp 2-8.0 ppa. Max surface pressure = 6700 psig. Placed 36,700 Ibs prop (87.5 % 20/40 Ottawa & 12.5% 12/20 Flex Sand) into formation. Treating pressure was 2400 psi Well screened out with 17,500 Ibs. of 8 ppg in formation and 32,200 Ibs in wellbore. o 0 No Sustainable Rate 50 15. Well Class after proposed work: Exploratory 0 Development 0 16. Well Status after proposed work: Oil 0 Gas 0 WAG 0 GINJ 0 WINJ 0 WDSPL 17. I hereby certify that the foregoing is true and correct to the best of my knowledge. Sundry Number or NIA if C.O. Exempt: Prior to well operation: 0 Subsequent to operation: 0 14. Attachments: Copies of Logs and Surveys Run Daily Report of Well Operations 13. Oil-Bbl Representative Daily Average Production or Injection Data Gas-Met Water-Bbl Casing Pressure Tubing Pressure N/A N/A o 350 Sent to AOGCC X Service 0 o Contact Ken D. Walsh Title Senior Production Engineer Printed Name Ken D. Walsh Signature I ÚM- b · vJ~ FQrm 1 O-'1Q11 Rovj¡~d 011200'1 Phone 907-394-3060 Date 2/6/2006 Submit Origin21 Qnly X:213,017.13 Zone4 Y:2,236,705.03 Zone 4 GL: 135' KB: 156' (21' AGL) SPUD: 07/29/04 TD: 08/1912004 RiQ Released: 00:00 hrs 8/2612004 4-112" 12.6 ppf L-80 AB- Mod Butt tbg 7")( 4-1/2" annulus filled with 9.7 ppg mud. APi # 50-133-20541-00 Permit # 204-107 WBS # DD.03.09646.CAP.CMP Propertv:ADL 959242/1 & ADL 389180 4-1/2" Short Joint Locations: 6904' - 6925' MD 8536' - 8557' MD Weatherford Retrievable Bridqe Pluqs: 10580' MD (P- Test to 2000 psi surface w/KCL wat 10620' MD (would not test) Both plugs rated to 7500 psi above and 10000 psi from below. 10K CIBP at 10770' M IPBTD (Top offloat collar) 10,970' MD/7890' TVD usan Dionne #2 FSL, 1418' FEL, Sec. 6, TiS, R13W, SM 20" 133 ppf K-55 driven to 119' 1/4" 00 0.049" wall Chemical injection string tied into Chemical Injection Nipple top at 2400' w/double check valve and rupture discs 7766'-7826' MO (60') 3-3/8" 6 spf 4962'-5016' TVO 9727'-9747' MO (20') 3-318" 6 spf 6750'-6768' TVO 10,009'-10,031' MO (22') 3-3/8" 6 spf 7006'-7026' TVO 10,064'-10,140' MO (76') 3-318" 6 spf 7056'-7125' TVO 10,161'-10,181' MO (20') 3-318" 6 spf 7145'-7163' TVO 10,242'-10,330' MO (88') 3-3/8" 6 spf 7219'-7299' TVO Tagged fill at 10015' MD with Expro P-T tool on 11/15/2005. Tagged at 10026' MD and bailed down to 10028' MD with slickline on 125/2005. MO (36') 3-3/8" 6 spf Fraced with 37000 Ibs of 20/40 sand 7612'-7646' TVO 10,796'-10,854' MO (58') 3-3/8" 6 spf 7728'-7782' TVO BHL: 330' FSL, 1210' FEL, Sec. 31, TiN, R13W, SM , M MARATHON 4 Wellbore Name SD#2 Well Name SD#2 Slot Name SD#2 Installation Name Susan Dionne Field Name Ninilchik Field c~íi By ComtiintS . . MARATHON Oil Company,SD #2 Susan Dionne, Ninilchik Field,Kenai Peninsula, Alaska SURVEY LISTING Page 1 Wellbore: SD #2 Well path: MWD <0-11094> Date Printed: 23-Aug-2004 5-AuQ-2004 Last Revised 22-AuQ-2004 I Govemment ID Last Revised 19-May-2004 I Grid NorthinQ 2236705.0300 I Grid EastinQ 213017.1300 I Latitude N60 6 47.4215 I LonQitude W151 34 23.4462 I North 311.33N I EastinQ NorthinQ Coord System Name AK-4 on NORTH AMERICAN DATUM 1927 EastinQ I NorthinQ 226657.848~ Coord System Name I North AIiQnment 2252005.11 AK-4 on NORTH AMERICAN DATUM 1927 datu~ True All data is in Feet unless otherwise stated Coordinates are from Slot MD's are from Rig and TVD's are from Rig (Datum #2 156.0ft above Mean Sea Level) Vertical Section is from O.OON O.OOE on azimuth 324.46 degrees Bottom hole distance is 6631.10 Feet on azimuth 323.91 degrees from Wellhead Calculation method uses Minimum Curvature method Prepared by Baker Hughes Incorporated ... .... INTEQ East 1427.16W North AIiQnment True , M MARATHON ~ ~ . MARATHON Oil Company,SD #2 Susan Dionne, Ninilchik Field,Kenai Peninsula, Alaska . SURVEY LISTING Page 2 Well bore: SD #2 Wellpath: MWD <0-11094> Date Printed: 23-Aug-2004 .i. .... INTEQ WeUøâthCGridlReÞørt MD[ft] Inc[deg] Azi[deg] TVD[ft] North[ft] East[ft] Dogleg Vertical Easting Northing IdeQ/100ftl Sectionlftl 0.00 0.00 0.00 0.00 O.OON O.OOE 0.00 0.00 213017.1~ 2236705.0: 132.00 0.40 23.90 132.00 0.42N 0.19E 0.30 0.23 213017.3~ 2236705.4~ 192.00 0.60 10.80 192.00 0.92N 0.33E 0.38 0.56 213017.4E 2236705.9- 252.00 3.30 346.50 251.96 2.91N 0.01W 4.61 2.38 213017.H 2236707.9- 312.00 6.20 345.90 311.74 7.73N 1.21W 4.83 6.99 213016.1' 2236712.7~ 373.00 7.70 346.20 372.29 14.90N 2.98W 2.46 13.86 213014.5C 2236719.9~ 433.00 8.70 347.40 431.68 23.23N 4.93W 1.69 21.77 213012.n 2236728.3. 493.00 12.00 345.60 490.70 33.70N 7.47W 5.53 31.77 213010.4E 2236738.9( 553.00 14.60 340.30 549.08 46.87N 11.58W 4.78 44.86 213006.6i 2236752.H 614.00 15.80 337.30 607.95 61.77N 17.37W 2.35 60.36 213001.2~ 2236767. H 674.00 18.00 336.00 665.36 77.77N 24.30W 3.72 77.41 212994.6~ 2236783.3€ 733.00 21.40 335.10 720.89 95.87N 32.54W 5.79 96.92 212986.8E 2236801.6- 794.00 24.60 332.60 777.04 117.24N 43.07W 5.48 120.44 212976.8E 2236823.2€ 860.00 28.10 330.70 836.17 143.00N 57.00W 5.45 149.50 212963.5~ 2236849.3~ 922.00 31.10 330.10 890.08 169.62N 72.13W 4.86 179.95 212949.0~ 2236876.3~ 985.00 33.20 329.70 943.41 198.62N 88.95W 3.35 213.33 212932.9~ 2236905,?' 1048.0C 33.70 329.60 995.98 228.59N 106.50V'. 0.80 247.91 212916.1' 2236936.m 1111.00 34.80 329.40 1048.05 259.14N 124.49V'. 1.76 283.23 212898.8- 2236967.0€ 1172.0C 36.80 329.20 1097.52 289.82N 142.71V'. 3.28 318.78 212881.3E 2236998.H 1235.00 38.70 329.50 1147.34 323.00N 162.37V'. 3.03 357.21 212862.5C 2237031.8( 1297.00 40.70 328.90 1195.04 357.01N 182.65V'. 3.28 396.68 212843.0~ 2237066.2~ 1359.0C 42.30 328.90 1241.47 392.19N 203.87V'. 2.58 437.63 212822.6E 2237101.9€ 1421.0C 45.30 329.50 1286.21 429.05N 225.84V'. 4.88 480.39 212801.5i 2237139.3: 1484.0C 47.80 330.00 1329.54 468.55N 248.87V'. 4.01 525.93 212779.4~ 2237179.3. 1547.0C 49.70 330.40 1371.07 509.66N 272.41 V'. 3.05 573.06 212756.9~ 2237221.0~ 1609.0C 52.20 330.40 1410.13 551.52N 296.19V'. 4.03 620.94 212734.1E 2237263.4- 1673.0C 54.90 330.60 1448.15 596.32N 321.53V'. 4.23 672.13 212709.8E 2237308.8: 1735.0C 57.40 331.10 1482.6€ 641.29N 346.61 V'. 4.09 723.30 212685.8~ 2237354.31 1797.0C 60.10 330.70 1514.85 687.60N 372c39V'. 4.39 775.97 212661.2~ 2237401.2~ 1859.00 62.90 331.30 1544.43 735.25N 398.80V'. 4.60 830.09 212635.9~ 2237449.5€ 1955.00 62.20 331.70 1588.68 810.12N 439.45V'. 0.82 914.64 212597.0~ 2237525.3. 2078.00 62.80 330.70 1645.47 905.72N 492.01 V'. 0.87 1022.99 212546.8~ 2237622.2( 2202.00 63.30 330.20 1701.67 1001.871\, 546.52V'. 0.54 1132.92 212494.6' 2237719.6~ 2326.0C 63.20 330.80 1757.49 1098.251\, 601.05V'. 0.44 1243.03 212442.4C 2237817.2€ 2453.00 64.10 330.50 1813.86 1197.441\, 656.83V'. 0.74 1356.17 212389.0C 2237917.7€ 2578.00 62.80 330.40 1869.73 1294.711\, 711.98V'. 1.04 1467.38 212336.H 2238016.3' 2703.0C 64.60 330.60 1925.11 1392.241\, 767.15V'. 1.45 1578.81 212283.3- 2238115.1 : 2827.00 63.70 329.80 1979.17 1489.081\, 822.61 V'. 0.93 1689.84 212230.2' 2238213.2€ 2952.0C 64.80 329.80 2033.48 1586.381\, 879.24V'. 0.88 1801.94 212175.9' 2238311.81 3077.0C 64.30 329.30 2087.20 1683.681\, 936.44\A 0.54 1914.36 212121.0- 223841 0.5~ 3200.0C 64.50 329.50 2140.34 1779.161\, 992.91\A 0.22 2024.88 212066.8i 2238507.3' 3325.0C 67.10 '329.40 2191.5e 1877.341\, 1050.85\A 2.08 2138.45 212011.2i 2238606.8- 3387.00 66.80 329.10 2215.85 1926.371\, 1080.02\1\ 0.66 2195.3C 211983.2E 2238656.5~ 3511.0C 66.30 330.10 2265.2C 2024.491\, 1137.59\1\ 0.84 2308.6C 211928.0E 2238756.0' 3636.0C 65.90 329.20 2315.84 2123.111\, 1195.33\1\ 0.73 2422.41 211872.6~ 2238855.91 3760.00 65.20 329.50 2367.17 2220.221\, 1252.88\1\ 0.61 2534.88 211817.4i 2238954.4~ 3885.00 64.20 329.20 2420.59 2317.441\, 1310.49\1\ 0.83 2647.48 211762. H 2239052.9~ 4010.00 63.70 330.30 2475.48 2414.441\, 1367.06\1\ 0.89 2759.30 211707.9- 2239151.3' 4134.00 62.90 330.40 2531.20 2510.721\, 1421.86\1\ 0.65 2869.49 211655.4~ 2239248.8€ 4258.00 62.20 331.10 2588.36 2606.721\, 1475.63\1\ 0.75 2978.87 211603.9E 2239346.1 ~ 4384.00 61.40 331.20 2647.9C 2703.981\, 1529.21\1\ 0.64 3089.16 211552. 7~ 2239444.6: All data is in Feet unless otherwise stated Coordinates are from Slot MD's are from Rig and TVD's are from Rig (Datum #2 156.0ft above Mean Sea Level) Vertical Section is from O.OON O.OOE on azimuth 324.46 degrees Bottom hole distance is 6631.10 Feet on azimuth 323.91 degrees from Wellhead Calculation method uses Minimum Curvature method Prepared by Baker Hughes Incorporated M MARATHON ¡ . MARATHON Oil Company,SD #2 Susan Dionne, Ninilchik Field,Kenai Peninsula, Alaska . SURVEY LISTING Page 3 Well bore: SO #2 Well path: MWD <0-11094> Date Printed: 23-Aug-2004 .i. .... INTEQ Wefljalh.(·GriÖ).Rijôrt MD[ft] Inc[deg] Azi[deg] TVD[ft] North[ft] East[ft] Dogleg Vertical Easting Northing IdeQ/100ftl Sectionlftl 4508.0C 61.30 331.80 2707.35 2799.611\ 1581.14V\ 0.43 3197.15 211503.1C 2239541.4; 4633.0C 63.80 331.20 2764.97 2897.091\, 1634.07V\ 2.04 3307.24 211452.5C 2239640.1; 4757.00 63.60 331.90 2819.91 2994.821\, 1687.03V\ 0.53 3417.55 211401.8~ 2239739.1 < 4883.0C 63.80 331 .80 2875.74 3094.421\, 1740.32V\ 0.17 3529.57 211350.9~ 2239839.9l 5005.0C 63.20 332.30 2930.17 3190.871\, 1791.49V\ 0.61 3637.79 211302.1, 2239937.6' 5128.0C 63.10 332.60 2985.73 3288.161\, 1842.25V\ 0.23 3746.47 211253.6~ 2240036.0! 5252.0C 62.30 332.40 3042.60 3385.901\, 1893.13V\ 0.66 3855.57 211205.1 f 2240135.0· 5313.0C 61.40 331.80 3071.38 3433.431\, 1918.29V\ 1.71 3908.88 211181.1:: 2240183.1 : 5374.0C 60.90 331.20 3100.81 3480.391\, 1943.79V\ 1.19 3961.91 211156.7f 2240230.6; 5437.00 60.40 331.60 3131.69 3528.601\, 1970.07V\ 0.97 4016.42 211131.6:: 2240279.5( 5499.0C 60.00 331.00 3162.5C 3575.791\, 1995.91 V\ 1.06 4069.84 211106.9, 2240327.2! 5561.0C 58.50 329.30 3194.2C 3622.001\, 2022.42V\ 3.38 4122.85 211081.5, 2240374.1:; 5623.0C 57.30 329.10 3227.15 3667.121\, 2049.31V\ 1.95 4175.19 211055.7' 2240419.8E 5685.0C 55.20 328.60 3261.59 3711.231\ 2075.98V\ 3.45 4226.59 211030.1 C 2240464.6( 5747.0C 53.60 328.50 3297.68 3754.241\, 2102.28V\ 2.58 4276.87 211004.8:: 2240508.2:; 5810.0C 51.70 327.70 3335.9C 3796.761\, 2128.74V\ 3.18 4326.85 21 0979.3~ 2240551.3~ 5872.00 50.40 327.40 3374.88 3837.451\, 2154.61V\ 2.13 4374.99 210954.5C 2240592.6~ 5912.00 50.00 326.60 3400.48 3863.221\, 2171.34V\ 1.83 4405.69 21 0938.3~ 2240618.8' 5966.0C 48.70 326.50 3435.66 3897.401\ 2193.93V\ 2.41 4446.64 210916.6, 2240653.5: 6029.0C 47.00 326.60 3477.94 3936.371\, 2219.67V\ 2.70 4493.31 210891.8' 2240693.m 6091.00 45.70 326.90 3520.73 3973.891\, 2244.27V\ 2.13 4538.14 210868.1 ' 2240731 .11 6154.0C 42.70 325.10 3565.89 4010.301\, 2268.81V\ 5.16 4582.02 210844.4E 2240768.1 ; 6216.0C 41.90 323.30 3611.75 4044.151\, 2293.21V\ 2.34 4623.75 210820.8f 2240802.5! 6278.00 40.70 321.10 3658.33 4076.481\, 2318.28V\ 3.04 4664.64 210796.5f 2240835.5' 6340.0C 39.60 320.00 3705.72 4107.351\, 2343.68V\ 2.11 4704.52 210771.9· 2240866.9; 6402.0C 37.40 318.50 3754.24 4136.591\ 2368.86V\ 3.85 4742.95 210747.4:: 2240896.8· 6464.0C 36.10 317.50 3803.92 4164.161\ 2393.68V\ 2.31 4779.81 21 0723.2~ 2240924.9f 6526.00 34.90 316.60 3854.39 4190.521\, 2418.20V\ 2.11 4815.51 21 0699.3~ 2240951.8! 6589.0C 33.70 314.30 3906.44 4215.821\, 2443.10V\ 2.80 4850.57 210675.1 C 2240977.71 6651.0C 32.20 312.30 3958.47 4238.951\, 2467.63V\ 2.99 4883.65 210651.1:: 2241001.4! 6713.0C 30.20 310.50 4011.5C 4260.201\, 2491.71 V\ 3.56 4914.94 210627.5f 2241023.3( 6775.0C 28.80 309.30 4065.46 4279.791\, 2515.12V\ 2.45 4944.4~ 210604.6, 2241043.4< 6837.0C 27.10 309.30 4120.22 4298.191\, 2537.61V\ 2.74 4972.54 21 0582.5~ 2241062.31 6899.0C 27.20 309.80 4175.39 4316.211\, 2559.42V\ 0.40 4999.87 210561.2C 2241080.9' 6961.0C 25.30 308.60 4231.00 4333.551\, 2580.67V\ 3.18 5026.33 21 0540.3~ 2241098.7< 7024.0C 25.60 307.40 4287.88 4350.211\, 2602.00V\ 0.95 5052.29 210519.4E 2241115.9' 7086.00 26.10 306.80 4343.68 4366.521\, 2623.56V\ 0.91 5078.09 210498.2f 2241132.7:: 7147.00 26.20 307.20 4398.44 4382.701\, 2645.03V\ 0.33 5103.74 210477.2C 2241149.4' 7210.0C 24.30 310.60 4455.42 4399.541\ 2665.95V\ 3.79 5129.61 210456.6f 2241166.7~ 7272.0C 25.10 309.30 4511.74 4416.171\ 2685.82V\ 1.56 5154.68 210437.2, 2241183.8~ 7335.00 25.20 309.30 4568.77 4433.131\ 2706.54V\ 0.16 5180.53 210416.9' 2241201.3( 7397.0C 23.30 310.30 4625.3C 4449.431\, 2726.10V\ 3.14 5205.16 210397.7< 2241218.01 7459.00 23.70 309.30 4682.16 4465.251\, 2745.10V\ 0.91 5229.07 210379.1 :: 2241234.3:; 7522.0C 24.10 308.80 4739.75 4481.331\, 2764.92V\ 0.71 5253.68 210359.6f 2241250.8; 7585.0C 24.40 307.70 4797.19 4497.341\, 2785.24V\ 0.86 5278.52 210339.7f 2241267.3E 7648.00 24.60 307.10 4854.52 4513.211\ 2805.99V\ 0.51 5303.50 21 0319.3~ 2241283.7:; 7709.0C 25.00 306.30 4909.90 4528.501\ 2826.51V\ 0.86 5327.87 210299.2< 2241299.5( 7772.00 25.60 305.30 4966.85 4544.251\, 2848.35V\ 1.17 5353.37 210277.7~ 2241315.7f 7834.00 25.80 305.80 5022.72 4559.881\, 2870.22V\ 0.48 5378.81 210256.2f 2241331.9' 7896.0C 25.70 304.60 5078.56 4575.411\, 2892.23V\ 0.86 5404.23 210234.6f 2241347.9~ 7958.0C 25.80 303.80 5134.41 4590.551\, 2914.51V\ 0.58 5429.5C 210212.7E 2241363.6:; All data is in Feet unless otherwise stated Coordinates are from Slot MD's are from Rig and TVD's are from Rig (Datum #2 156.0ft above Mean Sea Level) Vertical Section is from O.OON O.OOE on azimuth 324.46 degrees Bottom hole distance is 6631.10 Feet on azimuth 323.91 degrees from Wellhead Calculation method uses Minimum Curvature method Prepared by Baker Hughes Incorporated . . M MARATHON ~ , MARATHON Oil Company,SD #2 Susan Dionne, Ninilchik Field,Kenai Peninsula, Alaska SURVEY LISTING Page 4 Well bore: SD #2 Wellpath: MWD <0-11094> Date Printed: 23-Aug-2004 .i. .... INTEQ w.nøathlGridlRêiôrt MD[ft] Inc[deg] Azi[deg] TVD[ft] North[ft] East[ft] Dogleg Vertical Easting Northing fdea/100ftl Sectionfftl 8022.0C 25.40 303.20 5192.13 4605.811\, 2937.57V\ 0.74 5455.33 210190.0E 2241379 .4~ 8084.00 25.80 302.80 5248.04 4620.401\, 2960.03V\ 0.70 5480.26 210167.9~ 2241394.5! 8147.0C 25.80 302.70 5304.76 4635.231\, 2983.10V\ 0.07 5505.73 210145.2.1 2241409.9~ 8211.0C 23.20 306.10 5362.99 4650.191\ 3005.01V\ 4.62 5530.64 210123.7C 2241425.4( 8272.00 23.20 305.80 5419.06 4664.301\, 3024.46V\ 0.19 5553.42 210104.5E 2241439.9f 8335.0C 22.70 306.70 5477.08 4678.821\, 3044.27V\ 0.97 5576.76 21 0085.1 ~ 2241454.9! 8396.0C 22.00 309.20 5533.49 4693.071\, 3062.56V\ 1.94 5598.99 210067.1E 2241469.6.1 8459.00 21.60 310.90 5591.99 4708.131\ 3080.47V\ 1.19 5621.65 210049.6:: 2241485.1' 8521.00 22.00 310.70 5649.56 4723.171\, 3097.90V\ 0.66 5644.02 210032.5E 2241500.5; 8583.0C 22.50 309.90 5706.94 4738.351\, 3115.81V\ 0.94 5666.7E 210015.0:: 2241516.1; 8645.0C 22.30 308.60 5764.26 4753.301\ 3134.10V\ 0.86 5689.5E 209997.0~ 2241531.5! 8707.0C 22.40 307.80 5821.6C 4767.881\, 3152.63V\ 0.52 5712.21 209978.9. 2241546.5; 8769.0C 22.90 307.50 5878.82 4782.471\, 3171.53V\ 0.83 5735.07 209960.3ï 2241561.6( 8830.00 23.30 306.10 5934.93 4796.801\, 3190.70V\ 1.11 5757.87 209941.5~ 2241576.31 8892.00 23.50 305.30 5991.83 4811 .171\, 3210.69V\ 0.61 5781.18 209921.9C 2241591.2~ 8955.00 23.20 307.20 6049.67 4825.931\, 3230.83V\ 1.29 5804.9C 209902.1. 2241606.4f 9017.0C 23.40 307.20 6106.62 4840.751\, 3250.36V\ 0.32 5828.32 209882.9~ 2241621.7! 9081.00 23.30 306.80 6165.3E 4856.021\ 3270.62V\ 0.29 5852.51 209863.0E 2241637.4¡ 9143.0C 23.70 305.90 6222.23 4870.671\, 3290.53V\ 0.87 5876.01 209843.5C 2241652.6' 9204.0C 24.00 306.40 6278.02 4885.221\, 3310.45V\ 0.59 5899.43 209823.9.1 2241667.6:: 9265.0C 24.70 307.60 6333.6C 4900.361\, 3330.53V\ 1.41 5923.42 209804.2. 2241683.2.1 9331.0C 24.80 306.50 6393.53 4917.011\ 3352.59V\ 0.71 5949.78 209782.5ï 2241700.4· 9393.0C 25.20 305.50 6449.73 4932.411\, 3373.78V\ 0.94 5974.63 209761.n 2241716.3' 9455.0C 25.80 304.50 6505.69 4947.711\, 3395.65V\ 1.19 5999.8C 209740.2~ 2241732.1 :: 9517.0C 26.00 303.40 6561 .46 4962.841\, 3418.11 V\ 0.84 6025.16 209718.1 ~ 2241747.n 9578.0C 26.70 303.80 6616.12 4977.821\, 3440.66V\ 1.18 6050.46 209695.9ï 2241763.3( 9639.00 25.80 307.50 6670.83 4993.531\, 3462.59V\ 3.06 6075.99 209674.4. 2241779.5:: 9701.00 25.10 310.30 6726.82 5010.251\, 3483.32V\ 2.24 6101.64 209654.0~ 2241796.7:: 9763.00 24.80 311 .80 6783.03 5027.421\, 3503.04V\ 1.13 6127.08 209634.7~ 2241814.3; 9827.0C 24.70 311.60 6841.15 5045.241\, 3523.05V\ 0.20 6153.21 209615.2· 2241832.6; 9889.00 24.80 310.90 6897.46 5062.361\, 3542.56V\ 0.50 6178.4E 209596.1 ' 2241850.2.1 9951.0C 25.00 310.20 6953.7C 5079.331\, 3562.40V\ 0.57 6203.82 209576.6E 2241867.61 10013.0C 24.70 309.60 7009.96 5096.041\, 3582.39V\ 0.63 6229.04 209557.1 C 2241884.8f 10076.0C 24.70 309.60 7067.19 5112.821\, 3602.67V\ 0.00 6254.4E 209537.2. 2241902.1 ~ 10138.0C 24.10 311.90 7123.65 5129.531\, 3622.07V\ 1.81 6279.36 209518.2. 2241919.2¡ 10200.0C 23.90 311 .90 7180.30 5146.371\, 3640.84V\ 0.32 6303.97 209499.8E 2241936.5; 10262.0C 23.90 310.70 7236.9E 5162.951\ 3659.71 V\ 0.78 6328.43 209481.3~ 2241953.5¡ 10324.0C 24.00 311.20 7293.64 5179.451\, 3678.72V\ 0.36 6352.9C 209462.7£ 2241970.5.1 10387.0C 23.90 310.50 7351.22 5196.171\, 3698.07V\ 0.48 6377.76 209443.8.1 2241987.7~ 10449.0C 23.60 310.80 7407.97 5212.441\, 3717.01V\ 0.52 6402.01 209425.2E 2242004.4: 10511.0C 23.80 310.10 7464.74 5228.611\, 3735.97V\ 0.56 6426.18 209406.7' 2242021.0! 10574.0C 22.80 309.40 7522.6C 5244.541\, 3755.13V\ 1.65 6450.29 209387.9.1 2242037.4: 10636.0C 22.20 309.50 7579.88 5259.621\ 3773.45V\ 0.97 6473.2C 209369.9E 2242052.9.1 10698.0C 21.70 308.80 7637.39 5274.251\, 3791.42V\ 0.91 6495.56 209352.3E 2242068.0( 10760.0C 21.80 307.60 7694.97 5288.461\, 3809.48V\ 0.74 6517.61 209334.6~ 2242082.6:: 10822.0C 21.70 306.50 7752.56 5302.301\, 3827.81V\ 0.68 6539.53 209316.6! 2242096.9( 10884.0C 21.30 306.60 7810.24 5315.831\, 3846.07V\ 0.65 6561.15 209298.7:: 2242110.8; 10946.0C 21.00 305.70 7868.07 5329.031\, 3864.13V\ 0.71 6582.39 209280.9E 2242124.4¡ 11007.0C 20.20 305.10 7925.17 5341.461\, 3881.62V\ 1.36 6602.68 209263.7~ 2242137.3.1 11026.0C 20.00 305.20 7943.01 5345.221\, 3886.96V\ 1.07 6608.84 209258.5.1 2242141.2~ 11094.0C 20.00 305.20 8006.91 5358.631\, 3905.97V\ 0.00 6630.79 209239.8E 2242155.01 All data is in Feet unless otherwise stated Coordinates are from Slot MO's are from Rig and TVO's are from Rig (Datum #2 156.0ft above Mean Sea Level) Vertical Section is from O.OON O.OOE on azimuth 324.46 degrees Bottom hole distance is 6631.10 Feet on azimuth 323.91 degrees from Wellhead Calculation method uses Minimum Curvature method Prepared by Baker Hughes Incorporated . . M MARATHON MARATHON Oil Company,SD #2 Susan Dionne, Ninilchik Field,Kenai Peninsula, Alaska SURVEY LISTING Page 5 Wellbore: SD #2 Well path: MWD <0-11094> Date Printed: 23-Aug-2004 ... .... INTEQ Cornm&nts MDfftl I TVOfftl I Northfftl I Eastfftl 11094.od 8006.91 5358.63N Proiection to TO Sole Sections Diameter Start finl MOfftl 121/4 81/2 7.000 Start TVDfftl 0.00 1927.0C 5962.00 Start Start Northfftl Eastfftl 0.00 O.OON 1575.67 788.30N 3433.02 3894.891\ End MDfftl O.OOE 1927.0C 427.67\1\¡ 5962.0C 2192.27V\ 11094.0C End End Start Wellbore TVOfftl Northfftl Eastfftl 1575.67 788.30N 427.67\1\¡ SD #2 3433.02 3894.891\ 2192.27V\ SD #2 8006.91 5358.631\ 3905.97V\ SD #2 Name Top Top Top Top Shoe Shoe Shoe Shoe Wellbore MDfftl TVOfftl Northfftl Eastfftl MOfftl TVDfftl Northfftl Eastfftl 9 5/8" Casinq 0.00 0.00 O.OON O.OOE 1927.00 1575.66 788.30N 427.67\1\¡ SO #2 7.000in Casino 0.00 0.00 O.OON O.OOE 5942.00 3419.91 3882.301\ 2183.94V\ SO #2 4 1/2in Casino 0.00 0.00 O.OON O.OOE 11JJ94.0C 8006.91 5358.631\ 3905.97V\ SD #2 All data is in Feet unless otherwise stated Coordinates are from Slot MD's are from Rig and TVD's are from Rig (Datum #2 156.0ft above Mean Sea Level) Vertical Section is from O.OON O.OOE on azimuth 324.46 degrees Bottom hole distance is 6631.10 Feet on azimuth 323.91 degrees from Wellhead Calculation method uses Minimum Curvature method Prepared by Baker Hughes Incorporated Legal Well Name: Common Well Name: Event Name: Contractor Name: Rig Name: . . Marathon Oil cornPanY.t} Operations Summary Report SUSAN DIONNE 2 SUSAN DIONNE 2 ORIGINAL COMPLETION GLACIER DRILLLlNG GLACIER DRILLING Sub· from - To Hours COde Code Phase Date 8/22/2004 20:00 - 22:00 22:00 - 01 :30 01 :30 - 06:00 Start: 8/22/2004 Rig Release: Rig Number: 1 Spud Date: 7/29/2002 End: Group: Description of 2.00 TRIP _ WIPR PR1CSG RIH 4" DP, wiper trip I cond for csg run 3.50 CIRC_ MUD_ PR1CSG Circ I cond for csg run. Trip gas 350 units. No gain I loss 4.50 PULD_ DP _ PR1CSG PJSM, flow check, POH laying dn 4" DP for 4112 csg run No drag I swab I gain I loss. Correct hole fill. 180 jts out at 0600 hrs. Cont POH laying dn 4" DP I HWDP, no drag I swab I loss Clear rig floor all drlg tools, PJSM, RIU Weatherford csg equip, prepare rig floor 4 1/2 csg PJSM, C/O rams to 4 1/2, test same 250 12500 psi Test successful, no re-test PJSM, M/U I RIH 4 1/2 shoe track, thread lock all conn's ( Guide shoe, 3 jts 4 1/2, Float collar) Follow with 125 jts 41/2, 12.6 ppf, L80, Mod Butt prod csg. Baker ZXP Pkr, 49 jts 4 1/2 csg at 0600 hrs. No dn drag I gain I loss. Correct displacement. No ace I dn time. 8/23/2004 06:00 - 13:30 7.50 PULD - DP - PR1CSG 13:30 - 16:00 2.50 RURD - EQIP PR1 CSG 16:00 - 18:00 2.00 TEST_ EQIP PR1CSG 18:00 - 06:00 12.00 RUN - CSG_ PR1CSG 8/24/2004 06:00 - 07:30 1.50 RUN - CSG_ PR1CSG RIH with 15 jts 41/2,12.6 ppf, L80, Mod Tubing Butt prod csg to 8000'. RU to break circulation and casing is stuck. 07:30 - 09:30 2.00 RUN - CSG_ PR1CSG Work pipe, circulate while mixing 25 bbllubricant pill with 50% lubtex and 25 ppb Asphasol to free stuck pipe. Spot pill to end of tubing, change out to short bails. Work down 5 rounds of torque with top drive. Begin reciprocating pipe between 25K to 150K while pumping pill up annulus until free. SO 50K, PU 80K. 09:30 - 10:30 1.00 RUN - CSG - PR1CSG RIH 16 joints 41/2,12.6 ppf, L80, Mod Tubing Butt prod csg. MU Baker Chemical Injection Nipple (8430 psi Burst-7500 psi Collapse) with 1" 00 Interdesign H Series Injection Valve with dual checks and 5K rupture cartridge (10K working pressure). 10:30 - 14:00 3.50 RUN - CSG_ PR1CSG Continue RIH with 50 joints 4 1/2 , 12.6 ppf, L80, Mod Tubing Butt prod csg. While tripping in hole MU joint and pipe is stuck. Work pipe for 15 minutes to free. Cont RIH to btm at 11094 ft. Guide shoe 11094 ft, float collar 10969 ft, pkr 5732 ft. Inj xple 2400 ft. 14:00 - 15:30 1.50 CIRC_ MUD - PR1CSG Circ I cond fluids, trip gas 300 units, cuttings return normal quantity I quality. Traces coal. No gain I loss. Cont circ I cond in prep for cmt specs. Note: Can not recip pipe. Max 10 ft upward movement. 15:30 - 18:30 3.00 PUMP - CMT_ PR1CSG PJSM, Commence cmt 4 1/2 csg as follows: Pump 5 bbl H2o, test lines 5000 psi, pump 37 bbl MCS40 spacer Mix I pump 215 bbl "G", 13.5 ppg Drop plug, confirm plug dropped Displace with 168 bbl KCL, correct displacement. Bump plug with 3230 psi, build to 3700 psi I set pkr Cont build to 4500 psi 110 min, tbg test successful Bleed 1.5 bbls, floats holding. Plug bumped, cmt in place 1816 hrs. 100% returns, no gain I loss ICP = 580 psi, FCP = 2270 psi, linear press rise entire job. 18:30 - 03:00 8.50 NUND DBOP PR1CSG PJSM, Nipple dn BOPE, C/O rams, clean pits while WOC 03:00 - 06:00 3.00 NUND DBOP PR1CSG Suspend BOP stack, cut csg, remove BOP, begin install packoffs I tree adptr. 8/25/2004 06:00 - 10:00 4.00 NUND UTRE PR1CSG PJSM, install pkf, terminate control line, test same, Printed: 2/6/2006 11 :02:1 0 AM . . M?rafhon Oil Company Operations Summary ReÞ0rt Legal Well Name: Common Well Name: Event Name: Contractor Name: Rig Name: Date 8/25/2004 8/26/2004 SUSAN DIONNE 2 SUSAN DIONNE 2 ORIGINAL COMPLETION GLACIER DRILLLlNG GLACIER DRILLING From - To Hours Code ¿,~Je Phase 06:00 - 10:00 10:00 - 11 :00 4.00 NUND UTRE PR1CSG 1.00 TEST_ PLUG PR1CSG 11 :00 - 06:00 06:00 - 12:00 19.00 RURD_ RIG_ RDMO 6.00 RURD_ RIG_ RDMO 12:00 - 00:00 12.00 RURD_ RIG_ RDMO 2 Start: Rig Release: Rig Number: 8/22/2004 Spud Date: 7/29/2002 End: Group: Description of Operations. install prod tree, test same, all tests successful. PJSM, test tbg annulus 1000 psi 115 min. Test good. Set BPV, secure well. PJSM, commence rig dn, prepare move to Cannery #9 Lower Derrick and prep to layover. Crane off windwalls, stairs, dog house. RID beaver slide. Load out MI van and mud pump#3. PJSM. RID wlcrane, choke house, front windwalls, stairs, landings, outriggers, conex, flowline, diesel tank and derrick house. Lay derrick over and prep f/move. RID camp, mechanic and parts houses, welding shop. Load trailers. Scope down substucture. Rig released @OO:OOhrs 8/26/2004 to CLU#9. Printed: 2/6/2006 11 :02:10 AM Legal Well Name: Common Well Name: Event Name: Contractor Name: Rig Name: . . Page 1 of 16 Marathon Oil Company Operations Summary Report SUSAN DIONNE 2 SUSAN DIONNE 2 ORIGINAL COMPLETION GLACIER DRILLLlNG GLACIER DRILLING From~ To Hours Code Sub Phase Code Date 9/13/2004 09:00 - 14:00 9/18/2004 08:00 - 08:30 08:30 - 09:30 09:30 - 13:30 13:30 - 16:30 5.00 NUND TREE CMPPRF 0.50 SAFETY MTG_ CMPPRF 1.00 RURD_ ELEC I CMPPRF 4.00 RUNPUL ELEC CMPPRF 3.00 RUNPUL ELEC CMPPRF 9/21/2004 08:00 - 08:30 0.50 SAFETY MTG_ CMPPRF 08:30 - 09:00 0.50 RURD - ELEC CMPPRF 09:00 - 10:30 1.50 RUNPUL ELEC CMPPRF 10:30 - 11 :00 0.50 RUNPUL ELEC CMPPRF 11 :00 - 15:30 4.50 RUNPUL ELEC CMPPRF 15:00 - 16:00 1.00 RUNPUL ELEC CMPPRF 16:00 - 17:00 1.00 RURO - ELEC CMPPRF 9/22/2004 10:30 - 18:30 8.00 RURD - OTHR CMPPRF 9/23/2004 08:00 - 18:00 9/24/2004 08:00 - 18:00 9/25/2004 07:00 - 07:30 07:30 - 08:00 08:00 - 09:30 09:30 - 11 :30 11:30-12:30 10.00 RURD_ OTHR CMPPRF 10.00 RURD_ OTHR ICMPPRF 0.50 SAFETY MTG_ 0.50 RURD_ COIL 1.50 WAlTON EQIP 2.00 TEST_ EQIP 1.00 TEST _ EQIP CMPPRF CMPPRF CMPPRF CMPPRF CMPPRF Spud Date: 7/29/2002 End: Group: Start: 9/17/2004 Rig Release: Rig Number: I Descriþtion of Op.eratjons Vetco and Veco crane NU 4-1/16", 10K rental frac tree and tested to 10,000 psi. Held PJSM with Expro Wireline. MIRU Expro Wireline to tag PBTD with gauge ring and run a slim hole radial cement bond tool. RIH with 3.80" OD gauge ring and junk basket and could not pass 2850' KB. Tried 3.75" and 3.65" gauge rings without success. Removed junk basket and added another weight bar. RIH and worked past 2850'. RIH and tagged PBTD at 10950' KB with 3.65" 00 gauge ring. POOH and LO gauge ring. Worked on troubleshooting radial cement bond tool computer problems without success (laptop not communicating with panel). Decided to shut down and take wireline truck to shop for additional troubleshooting. Will attempt CBL again when Expro is ready. Held PJSM with Expro Wireline. MIRU Expro Wireline to run a slim hole radial cement bond tool and memory GRlQuick Baseline Temperature. RIH with CBL and Quick Temp tools. Correlated depth with GR on Reeves Induction Log run 20-Aug-2004. Tagged PBTD at 10,963' KB. Logged CBL repeat from 10,942'-10,700' KB. Dropped down and started main pass. Logged main pass CBL and memory temperature. Pulled hard off bottom (4600#) and then dropped back to 2500-2700# tension. Logged from 10,942' to cement top at 1104' KB. POOH and LD logging tools. RDMO Expro Wireline. Weaver Bros. delivered Powerwell Services (PWS) well test equipment. ASRC delivered liner and berm and spotted under test equipment. ASRC delivered rental front-end loader. Airport Rental delivered two light plants, air compressor, and 65 KW generator. Weaver Bros. delivered MOC chicksan, gas buster, and barrel flow line weights. S&R delivered two portable toilets and a 30-yd dumpster. Cook Inlet Safety delivered LEL and H2S monitoring equipment. Vetco delivered rental flowback manifold. Set Rain-for-Rent and MOC flowback tanks. RU MOC gas buster on top of flowback tanks and chained down. Set Vetco rental flowback manifold. Layed MOC 2" 1502 chicksan from PWS separator to gas buster and to sales line. MIRU Cook Inlet Safety gas detection system. Delivered and set MOC vent stack and base. Tied in PWS lines from separator to vent stack. Udelhoven tied in PWS to rental generator. Filled PWS separator with glycol water. Finished RU PWS and MOC flowbackltest equipment. Tested flowback lines to 100 psi with air. MIRU BJ Coil.tech coil tubing unit, fluid pumper, and nitrogen pumper. Continued rigging up Cook Inlet Safety. Held PJSM with BJ Coiltech. Took BJ Coiltech injector head to wellhead. Wait on Veco vac truck with fresh water for CT pressure test. RU vac truck to BJ Coiltech. Pressure tested BJ CT, pump and kill lines, and BOP to 200/4500 psi with fresh water. Pressure tested PWS flowback line to separator to 200/4500 psi with fresh water. Pressure tested MOC chicksan from separator to sales line to 200/1000 psi with fresh water. Cleared fluid from chicksan line with air. Printed: 2/6/2006 11 :01 :15 AM . . Page 20f 16 Marathon Oil Company Operations Summary Report Legal Well Name: Common Well Name: Event Name: Contractor Name: Rig Name: Date SUSAN DIONNE 2 SUSAN DIONNE 2 ORIGINAL COMPLETION GLACIER DRILLLlNG GLACIER DRILLING Sub From - To Hours Code Code Phase 9/25/2004 12:30 - 14:30 2.00 RUNPUL COIL CMPPRF 14:30 - 17:00 2.50 WAlTON EQIP CMPPRF 17:00 - 20:00 3.00 RUNPUL COIL CMPPRF 20:00 - 21 :30 1.50 JET_ N2 - CMPPRF 21 :30 - 23:30 2.00 RUNPUL COIL CMPPRF 23:30 - 04:00 4.50 RURD COIL CMPPRF 9/30/2004 07:00 - 08:00 1.00 SAFETY MTG_ CMPPRF 08:00 - 10:30 2.50 RURD - ELEC CMPPRF 10:30 - 12:00 12:00 - 13:00 1.50 WAlTON EQIP CMPPRF 1.00 RURD_ ELEC CMPPRF 13:00 - 14:00 1.00 RUNPUL ELEC CMPPRF 14:00 - 15:00 15:00 - 15:30 15:30 - 16:30 1.00 WORK_ELEC CMPPRF 0.50 RUNPUL ELEC CMPPRF 1.00 RURD_ ELEC CMPPRF 10/1/2004 07:00 - 07:30 0.50 SAFETY MTG_ CMPPRF 07:30 - 09:00 1.50 RURD - ELEC CMPPRF 09:00 - 11 :30 2.50 RUNPUL ELEC CMPPRF 11 :30 - 13:30 2.00 RUNPUL EQIP CMPPRF 13:30 - 16:00 2.50 RUNPUL EQIP CMPPRF 10/6/2004 11 :30 - 12:00 0.50 SAFETY MTG_ CMPPRF 12:00 - 14:30 2.50 I RURD_ ELEC CMPPRF Start: Rig Release: Rig Number: Spud Date: 7/29/2002 End: Group: 9/17/2004 Description of Operations RIH with 2" wash nozzle, 4' straight pipe, double flapper check, and CT connector on 1-112" coil tubing to 500'. Began pumping nitrogen at 450 scfm to unload 6% KCL water from hole. RIH to 5000' and shut down due to wait on mechanic to repair nitrogen unit. Wait on BJ Services mechanic. Repaired nitrogen unit. Cooled down nitrogen unit and RIH with coil tubing pumping 450 scfm nitrogen and tagged PBTD at 10,957' KB. Jetted nitrogen at 450 scfm while on bottom monitoring 6% KCL water return volume. POOH jetting nitrogen at 450 scfm until fluid returns ceased. Recovered all but 20 bbls. of the 6% KCL water fluid in the wellbore. Closed choke and pressured up well to 1200 psi with nitrogen. RDMO BJ Coiltech. Filled out work permit. Held PJSM with PWS well testers, Expro perforators, and MOC personnel to review operational plan and identify potential hazards. Spotted Expro wireline unit and boom truck. MU lubricator and grease head. MU WL BOP and pump-in tee. Expro discovered that they brought the wrong tree connection. MU 3.75" O.D. gauge ring with weight bar and jars. Wait on delivery of proper tree connection to lubricator. Flange up wireline BOP and pump-in tee to top of swab valve. PU lubricator and gauge ring tool assembly and MU to WL BOPs. Pressure tested lubricator to 1250 psi nitrogen WHP. RIH with 2.80" gauge ring to 2750' KB. Stopped RIH because trapped torque in wireline turned the top shieve which wrapped the wireline to and from the shieve. Unwrapped wireline below shieve. POOH with gauge ring. LD lubricator and RD wireline. Wireline is damaged about 2800' from the end due to wrapping problems described above. Discussed options with Expro. Decided to change out to run Expro's smaller (7/32") wireline and rig up to perforate tomorrow. Filled out work permit. Held PJSM with PWS well testers, Expro perforators, and MOC personnel to review operational plan and identify potential hazards. PU lubricator and gauge ring tool assembly and MU to WL BOPs. Pressure tested lubricator to 1250 psi nitrogen WHP. RIH with 2.80" gauge ring on 7/32" wireline to 2750' KB. Stopped RIH because trapped torque in wireline turned the top shieve which wrapped the wireline. POOH with gauge ring. Armed 20' 3-3/8" carrier and RIH with 3.375" OD perforating gun loaded 18' with SDP-3125-311 NT3, 25 gm. charges, 6 SPF on CCL to 4130' KB and shieve wrapped again. Wireline is slightly stranded at wrap point. Unwrapped shieve and POOH. LD lubricator. Disarmed perforating gun. SDFN. Attempting to identify and secure delivery of a wireline swivel. Filled out work permit. Held PJSM with PWS well testers, Expro perforators, and MOC personnel to review operational plan and identify potential hazards. PWS blew down nitrogen surface pressure to 1000 psi while waiting on Expro Wireline. MU lubricator. MU WL BOP's and pump-in tee to top of swab valve. Printed: 2/6/2006 11 :01 :15 AM Legal Well Name: Common Well Name: Event Name: Contractor Name: Rig Name: . . Page 3 of 16 Marathon OilCompa.ny Operations Summary R~port SUSAN DIONNE 2 SUSAN DIONNE 2 ORIGINAL COMPLETION GLACIER DRILLLlNG GLACIER DRILLING C d Sub From.,. To Hours 0 eCode Phase Date 10/6/2004 12:00 - 14:30 14:30 - 17:30 2.50 RURD_ ELEC CMPPRF 3.00 RUNPUL ELEC CMPPRF 17:30 - 19:00 1.50 RUNPUL ELEC CMPPRF 19:00 - 20:00 1.00 RURO - ELEC CMPPRF 10/7/2004 07:00 - 07:30 0.50 SAFETY MTG - CMPPRF 07:30 - 09:00 09:00 - 11 :30 11 :30 - 13:00 13:00 - 16:00 1.50 RURD_ ELEC CMPPRF 2.50 RUNPUL ELEC . CMPPRF 1.50 RUNPUL ELEC CMPPRF 3.00 RURD_ ELEC CMPPRF 16:00 - 17:30 1.50 RUNPUL ELEC CMPPRF 17:30 - 18:30 1.00 RURD - ELEC CMPPRF 10/8/2004 12:30 - 13:00 0.50 SAFETY MTG_ CMPPRF 13:00 - 15:00 15:00 - 18:00 18:00 - 20:00 20:00 - 21 :30 10/13/2004 17:00 - 17:30 2.00 RURD_ ELEC CMPPRF 3.00 RUNPUL ELEC CMPPRF 2.00 RUNPUL ELEC CMPPRF 1.50 RURD_ ELEC CMPPRF 0.50 SAFETY MTG_ CMPSTM Start: 9/17/2004 Rig Release: Rig Number: 1 Spud Date: 7/29/2002 End: Group: Description of Operations MU CCL and wireline swivel. Check fire. Armed perforating gun. Pressure tested lubricator to 1000 psi nitrogen WHP. Armed 20' 3-3/8" carrier and RIH with 3.375" 00 perforating gun loaded 18' with SDP-3125-311 NT3, 25 gm. charges, 6 SPF on CCL. Correlated depth with Expro GR-CCL log run Sept-20-2004 and Reeves Induction Log run 20-Aug-2004. Bled nitrogen surface pressure from 1000 to 900 psi while running in hole from 5000' KB. Perforated 10,836-10,854' KB with 900 nitrogen psi WHP. POOH with gun. WHP remained at 900 psi for 20 minutes while POOH. LD lubricator and perforating gun- all shots fired and round. Monitor well for night. Filled out work permit. Held PJSM with PWS well testers, Expro perforators, and MOC personnel to review operational plan and identify potential hazards. PWS blew down nitrogen surface pressure to 1000 psi while waiting on Expro Wireline. MU lubricator. MU WL BOP's and pump-in tee to top of swab valve. MU CCL and wireline swivel. Check fire. Armed perforating gun. Pressure tested lubricator to 900 psi nitrogen WHP. Armed 20' 3-3/8" carrier and RIH with 3.375" OD perforating gun loaded 20' with SDP-3125-311 NT3, 25 gm. charges, 6 SPF on CCL. Correlated depth with Expro GR-CCL log run Sept-20-2004 and Reeves Induction Log run 20-Aug-2004. Perforated 10,816-10,836' KB with 900 nitrogen psi WHP. POOH with gun. WHP remained at 900 psi for 30 minutes while POOH. LO lubricator and perforating gun- all shots fired and round. Armed 20' 3-3/8" carrier and RIH with 3.375" OD perforating gun loaded 20' with SDP-3125-311 NT3, 25 gm. charges, 6 SPF on CCL. Correlated depth with Expro GR-CCL log run Sept-20-2004 and Reeves Induction Log run 20-Aug-2004. Perforated 10,796-10,816' KB with 900 nitrogen psi WHP. POOH with gun. WHP remained at 900 psi for 20 minutes while POOH. LD lubricator and perforating gun- all shots fired and round. Monitor well for night. Filled out work permit. Held PJSM with PWS well testers, Expro perforators, and MOC personnel to review operational plan and identify potential hazards. PWS blew down nitrogen surface pressure to 1000 psi while waiting on Expro Wireline. MU lubricator. MU WL BOP's and pump-in tee to top of swab valve. MU CCL and wireline swivel. Check fire. Armed perforating gun. Pressure tested lubricator to 900 psi nitrogen WHP. Armed 36' 3-3/8" carrier and RIH with 3.375" OD perforating gun loaded 36' with SDP-3125-311 NT3, 25 gm. charges, 6 SPF on CCL. Correlated depth with Expro GR-CCL log run Sept-20-2004 and Reeves Induction Log run 20-Aug-2004. Perforated 10,671-10,707' KB with 900 nitrogen psi WHP. POOH with gun. WHP remained at 900 psi for 2 hours while POOH. LD lubricator and perforating gun- all shots fired and round. ROMO Expro Wireline. PWS to blow well down from 900 to 500 psi in 2 hours, shut the well in for 30 minutes to check for a buildup in pressure, and then flow the well down in 100 psilhr increments to 0 psi. If the well begins to flow back formation gas, the testers will choke the pressure back to 1100 psi and monitor flowrate. Held PJSM. Printed: 2/6/2006 11 :01 :15 AM Legal Well Name: Common Well Name: Event Name: Contractor Name: Rig Name: Date From Tö 10/13/2004 17:30 - 19:00 10/14/2004 08:00 - 08:30 08:30 - 10:00 10:00 - 11 :30 11 :30 - 13:00 13:00 - 13:30 13:30 - 15:00 15:00 - 17:00 17:00 - 18:30 10/15/2004 08:00 - 08:30 08:30 - 11 :00 . . Marathon Oil Company Operations Summary Report Page 4 of 16 SUSAN DIONNE 2 SUSAN DIONNE 2 ORIGINAL COMPLETION GLACIER DRILLLlNG GLACIER DRILLING C Sub Hours ode Code Phase Start: Rig Release: Rig Number: 9/17/2004 Spud Date: 7/29/2002 End: Group: De$cription of Operåtions 1.50 RURD ELEC CMPSTM MIRU Expro Wireline Unit. 0.50 SAFETY MTG_ CMPSTM Hold PJSM with Expro, PWS testers, and Marathon personnel. 1.50 RURD_ ELEC CMPSTM MU and PU 3.60" OD gauge ring, weight bars, jars, and CCUGR. SICP was 110 psig. 1.50 RUNPUL ELEC CMPSTM RIH to 10,900' MD with CCUGR and logged up to 10,530' MD with GRlCCL without problems. Noted both set of perforations on depth. 1.50 RUNPUL ELEC CMPSTM POOH and LD gauge ring. 0.50 RUNPUL ELEC CMPSTM Hold PJSM to discuss hazards of explosives. Check fire. MU Owen 10K CIBP and setting sleeve. 1.50 RUNPUL ELEC CMPSTM RIH with CIBP and correlated depth with Expro CBL. Set top of CIBP at 10,770' MD. PUH and then RIH and tagged CIBP at proper depth. 2.00 RUNPUL ELEC CMPSTM POOH with CCL and setting tool. BJ SeNices moved in ancillary pump equipment and TMV van. Blew down 110 psi WHP while POOH. Gas is formation gas with 0.57 sp. gr. 1.50 RURD_ ELEC CMPSTM RDMO Expro wireline. 0.50 SAFETY MTG_ CMPSTM Hold PJSM with BJ SeNices, PWS testers, and Marathon personnel. Filled out work permit. 2.50 RURD_ STIM CMPSTM MIRU BJ SeNices fluid pump to break down the Tyonek Class II perforation inteNal, 10671'-10707' MD. Spotted fluid pumper and then BJ SeNices realized that the wrong fluid pumper was delivered and was inoperable. Mixed surfactant and clay stabilizer into 300 bbls 6% KCL water in Rain-for-Rent tank while waiting for delivery of proper fluid pumper. Laid treating lines and connected to frac tree. SIWHP was 15 psig. MIRU BJ SeNices fluid pumper and made final pump line tie-in. Spotted TMV (frac van) and tied pressure tranducer to 4-1/2" annulus valve. Hold PJSM with BJ SeNices, PWS testers, and Marathon personnel. Bled down 15 psig well pressure to vent stack. Close tree valves. Pressure test pump lines to 7000 psi. BJ troubelshot flow meters. Unable to open pressure locked swab valve. Called Vetco to deliver power gate pressure relief tool. Vetco equalized pressure differential on swab valve. Filled casing with 123 bbls. 6% KCL water (26 bbls calculated water influx). Initiated fracture with 4200 psi surface treating pressure. Pumped KCL water at 4.7 BPM and 2560 psig. Increased rate to 8.8 BPM at 2530 psi. Dropped injection rate to 6.0 BPM at 2250 psi. Dropped injection rate to 3.3 BPM at 2020 psi. Shut down with 158 bbls. total KCL water pumped (35 bbls into formation) and monitored falloff pressure for 1/2 hour. ISIP was 1835 psig. Final pressure after 1/2 hr. was 975 psi. 1.00 PUMP _ WTR_ CMPSTM Initiated second pump in at 8.9 BPM and 2500 psi pumping an additional 32 bbls. KCL water into formation (Total pumped was 190 bbls with 67 bbls into formation). Shut down pumps and monitored falloff pressure for 1/2 hour. ISIP was 1900 psi and final pressure after 1/2 hour was 1070 psi. 3.00 RURD_ STIM CMPSTM RDMO BJ SeNices pumping equipment. Turned well to PWS testers with 1060 psi WHP. Flowed well from 1730 hrs 10/14/2004 to 0530 hrs 10/15/2004 recovering 34 bbls KCL load water with 5 psi final FCP. Continue to flow well at about 24 BPD average KCL water flow rate. 7.50 RURD_ STIM CMPSTM 10/15-10/19/2004: MIRU BJ SeNices frac equipment. Spotted 3 Rain-for-Rent tanks and filled with 6% KCL water. Steam-on-Wheels heated KCL water to 85 deg F. Delivered 20/40 Ottawa sand and 11 :00 - 12:00 1.00 RURD - STIM CMPSTM 12:00 - 12:30 0.50 SAFETY MTG_ CMPSTM 12:30 - 14:00 1.50 TEST_ EQIP CMPSTM 14:00 - 15:00 1.00 TEST_ EQIP CMPSTM 15:00 - 15:30 0.50 TEST_ EQIP CMPSTM 15:30 - 16:00 0.50 PUMP_ WTR_ CMPSTM 16:00 - 16:30 0.50 PUMP - WTR_ CMPSTM I 16:30 - 17:30 17:30 - 20:30 10/20/2004 09:00 - 16:30 Printed: 2/6/2006 11 :01 :15 AM Legal Well Name: Common Well Name: Event Name: Contractor Name: Rig Name: Date 10/20/2004 10/21/2004 1 0/22/2004 . . Pagß5 of 16 Marathon Oil Company Operations Summary Report SUSAN DIONNE 2 SUSAN DIONNE 2 ORIGINAL COMPLETION GLACIER DRILLLlNG GLACIER DRILLING From- To Hours Code ¿~Je Phase 09:00 - 16:30 16:30 - 01 :00 06:30 - 09:30 09:30 - 10:00 10:00 - 11 :00 11 :00 - 12:00 12:00 - 13:30 13:30 - 15:00 15:00 - 17:30 17:30 - 18:30 18:30 - 19:30 19:30 - 20:00 20:00 - 06:00 06:00 - 08:00 08:00 - 10:00 10:00 - 11 :00 11 :00 - 12:30 7.50 RURD_ STIM CMPSTM 8.50 RUNPUL COIL CMPSTM 3.00 RURD STIM CMPSTM 0.50 SAFETY MTG_ CMPSTM 1.00 RURD_ STIM 1.00 TEST_ EQIP CMPSTM CMPSTM 1.50 PUMP _ FRAC CMPSTM 1.50 RURD_ STIM CMPSTM 2.50 RURD_ COIL CMPSTM 1.00 RURD_ COIL 1.00 TEST _ EQIP CMPSTM CMPSTM 0.50 SAFETY MTG_ CMPSTM 10.00 JET_ WTR_ CMPSTM 2.00 JET _ WTR_ CMPSTM 2.00 JET _ WTR_ CMPSTM 1.00 JET _ WTR_ CMPSTM 1.50 JET_ N2_ CMPSTM Start: 9/17/2004 Rig Release: Rig Number: 1 Spud Date: 7/29/2002 End: Group: Description of Operâtipns FlexSand proppant and placed in Sand Kings. Layed pump and suction lines. Veco set MOC sand buster. Connected sand buster to wing valve and to PWS choke manifold. Layed auxilliary lines with valves to gas buster and to sales line. MIRU BJ Coil tech coil tubing unit and pump lines. MU coil tubing BOP and pump-in tee to top of Stinger Y frac head. SDFN. BJ Services finished rigging up frac equipment and lines. Hold PJSM. Discuss slips trips and falls. High pressure lines and frac operations. Production system and emergency evacuation I accident plan. Veco roustabouts finished rigging up MOC flowback lines. Pressure tested BJ Services pump lines to 300/8500 psig and flowback line from tree through sand buster to PWS choke skid to 300/5000 psi. Spent 1/2 hour trying to get pumps primed. Fraced Tyonek perfs from 10671'-10707'. Treated with wI BJ Lightning_V_2200 wtr based system at 15-16 BPM. Ramp 2-8.0 ppa. Max surface pressure = 6700 psig. Placed 36,700 Ibs prop (87.5 % 20/40 Ottawa & 12.5% 12/20 Flex Sand-100% of design). Treating pressure was 2400 psi Well screened out with 17,500 Ibs. of 8 ppg in formation and 32,200 Ibs in well bore. Total fluid load = 556 bbls (includes 162 bbls. 6% KCL water wellbore volume plus 394 bbls. frac fluid). Tagged pad wI ProTechnics Sc-46 ZWLD, 1-6 ppg proppant with Sb-124 ZW, and 8 ppg proppant with Ir-192 ZW RA tracers. Final pressure after pumping ceased stabilized around 5365 psi. RD BJ Services pump lines. PWS opened well to sand buster with a quick pressure bleed off to 0 psi. Held PJSM with BJ CoilTech, PWS, and Veco personnel. Warm up BJ CoilTech coil tubing unit and fluid pumper. PU injector head and MU to top of CT BOP. Lay suction line to Rain-for-Rent tank manifold. S&R vac truck mixed FRW-14 friction reducer in 750 bbls 6% KCL remaining from frac to use for coil tubing cleanout. Pumped pig through coil tubing. Pressure tested lines to Pressure tested pump lines to 250/5500 psi and CT BOP's to 250/4500 psi. Held PJSM with all personnel on location. RIH with 1-3/4" chisel nozzle, circ sub, dbl. flapper, 3' straight bar, and dimple-on connector on 1-3/4" CT. Pumped 6% KCL water at 1 BPM while RIH. Tagged hard sand top at 6843' and increased KCL rate to 2.5 BPM. Washed sand at 10-15 fpm ct injection rate to 9800' MD. Getting steady sand returns-no formation gas. S&R vac trucks worked all night transfering and filtering KCL water. Washed frac sand from well bore with 1-3/4" chisel nozzle, circ sub, dbl. flapper, 3' straight bar, and dimple-on connector on 1-3/4" CT. Washed frac sand at 10-15 fpm ct injection rate at 2.5 BPM from 9800' to '10,750' CTM. Getting steady sand returns-no formation gas. Circulated 1-1/2 bottoms up with KCL water at 2.3 BPM until sand returns dropped to a trace. Dropped ball and displaced with 30 bbls KCL water to shift sleeve in nozzle redirecting flow upward. Metered LEL from top of gas buster at 2%. Continued jetting KCL water (121 bbls) with CT on bottom while BJ worked to prime the nitrogen unit deck engine. Started deck engine and cooled down nitrogen pumper. With CT still at 10740', pumped 1000 scfm nitrogen and no fluid. Printed: 2/6/2006 11 :01 :15 AM . . Page 6 of 16 Marathon Oil Company Operations Summary Report legal Well Name: Common Well Name: Event Name: Contractor Name: Rig Name: Date 10/22/2004 SUSAN DIONNE 2 SUSAN DIONNE 2 ORIGINAL COMPLETION GLACIER DRlllLlNG GLACIER DRilLING , Sub From - To Hours Code/ Code Phase 11 :00 - 12:30 1.50 JET_ N2_ CMPSTM 12:30 - 14:30 2.00 JET_ N2_ CMPSTM 14:30 - 16:00 16:00 - 17:30 1.50 RUNPUL COIL 1.50 RURD_ COIL CMPSTM CMPSTM 10/23/2004 07:00 - 07:30 0.50 SAFETY MTG_ CMPSTM 07:30 - 09:00 1.50 RURD - COIL CMPSTM 09:00 - 10:00 1.00 RUNPUL COIL CMPSTM 10:00 - 10:30 0.50 RUNPUL COIL CMPSTM 10:30 - 15:00 4.50 JET_ N2 - CMPSTM 10/25/2004 15:00 - 18:00 3.00 JET _ N2_ CMPSTM 18:00 - 19:00 1.00 JET_ N2_ CMPSTM 19:00 - 21 :00 2.00 RUNPUL COIL CMPSTM 21 :00 - 22:30 22:30 - 00:00 1.50 RUNPUL COIL 1.50 RURD_ COIL CMPSTM CMPSTM 07:00 - 07:30 0.50 SAFETY MTG_ CMPSTM 07:30 - 10:30 3.00 RURD_ COIL CMPSTM Start: 9/17/2004 Rig Release: Rig Number: 1 Spud Date: 7/29/2002 End: Group: Description of Operations POOH at 20 fpm @ 1000 scfm. Increased N2 to 1500 scfm for 10 min. Dropped N2 rate to 750 scfm while POOH at 50 fpm. LEL measured at 2% at gas buster. Dropped N2 to 450 scfm at 9100'. Cut out target tee at gas buster. Took well to sand buster through PWS line and replaced target tee. Continued POOH to 6700' w/N2 at 450 scfm. WHP decreasing steadily. Decided to RIH and jet out frac fluid entry. RIH with coil tubing pumping N2 at 450 scfm. Started picking up fluid at around 7000' MD. RIH and tagged sand at 10673' (2' into perfs). Stopped pumping nitrogen. Recovered 133 bbls. of 556 bbl total load fluid (162 bbls KCL water in well bore plus 394 bbls frac fluid). POOH with coil tubing. Shut well in and rigged back injector head. Closed and manually locked CT blind rams. Installed night cap. Turned well to PWS testers. Will plan to jet well with nitrogen again tomorrow morning, if necessary. Hold PJSM. Discuss slips trips and falls. High pressure lines and coil tubing operations. Production system and emergency evacuation I accident plan. Layed suction line to fluid tanks. MU injector head to CT BOP and shell tested to 1000 psi. RIH with chisel bit on coil tubing without pumping. Tagged hard at 2850' MD. POOH to inspect nozzle for potential sand plugging. Nozzle not plugged but decided to change to 2-1/8" chisel nozzle. RIH with 2-1/8" OD chisel bit on coil tubing pumping fluid at 0.5 BPM and N2 at 400 scfm to 2700'. Increased fluid rate to 1.5 BPM at 2700'. Washed through sand bridge 2850-2855' MD. Increased coil tubing running rate to 50 fpm. Circulated 800 scfm nitrogen RIH to 5190'. Tagged and worked through 4' sand bridge. RIH and circulated through sand bridge 6073'-6104' at 2 BPM KCL water and 400 scfm N2. RIH pumping N2 at 800 scfm with no fluid to 10690' and tagged hard. PUH 200' and started KCL water at 2.0 BPM and N2 at 300 scfm. RIH and tagged high at 10,649'. Worked fill depth down to 10661' in 3 hours. Full returns with a small amount of coal for about 10-15 minutes followed by a large amount of FlexSand (fill quart strainer in 4-5 minutes) and a trace of frac sand. Tried varying fluid and nitrogen rates without successful movement downhole. POOH to 6000' and jetted well dry to surface with nitrogen to attempt to move fill uphole and "fluff" it up while maintaining 50% underbalance on formation. RIH while pumping nitrogen at 400 scfm. Tagged fill at 10670' and could not wash off. Total fluid recovery today was 84 bbls. Total frac load recovery of 217 bbls (39%) of 556 bbls. load. POOH with coil tubing and BHA without pumping. Shut well in and rigged back injector head. Closed and manually locked CT blind rams. Installed night cap. Turned well to PWS testers. Plan to PU motor and mill to cleanout fill with coil tubing on 10/24/2004. BJ CoilTech crew needs rest. Hold PJSM. Discuss slips trips and falls. High pressure lines and coil tubing operations. Production system and emergency evacuation I accident plan. Layed suction line to fluid tanks. PU injector head and MU two joints of lubricator. Cut coil tubing and installed Weatherford coil connector. Printed: 2/6/2006 11:01:15AM . . Page 7Óf Marathon Oil Company Operations Summary Report 3.00 RURD_ COIL CMPSTM MU MHA and pull tested. MU motor and mill. Took injector to wellhead. Shell tested lubricator and BOP. Began to RIH and tagged up in coil tubing BOP. Hydraulic and manual indicators showed all rams fully open. Set back injector head and inspected CT BOP. Slip rams appear to be damaged and will not fullly retract. Appears that BJ CoilTech personnel did not activate hydraulic lock and that hydraulic pressure bled off allowing rams to partially close. 2.00 RURD_ COIL CMPSTM LD injector head and Weatherford motor and mill. ND CT BOP's while waiting for replacement BOP's. NOTE: Also inspected 2-1/8" wash nozzle from previous run. Sleeve in wash nozzle had been shifted which directs all flow upwards. However, no ball had been dropped to shift sleeve. It is believed that the sleeve was either not repinned correctly before running in the hole or that an ice plug from the low side of the coil tubing seated and shifted the sleeve. The fact that the sleeve was shifted explains the difficulty washing through the small bridges uphole on 10/22/04 and not being able to wash through sand from 10649'-10690'. 2.00 RURD_ COIL CMPSTM Cut off Weatherford coil connector and replaced with BJ connector. Installed 1-3/4" OD wash nozzle without sleeve, double flapper, and hydraulic disconnect. NU 4-1/16" CT BOP and took injector head to wellhead. 2.00 TEST _ EQIP CMPSTM Pressure tested CT BOP to 250/4500 psi. Pump lines tested to 6000 psi. 6.50 JET_ N2_ CMPSTM RIH with 1-3/4" wash nozzle to 1800'. Pumped nitrogen at 350 scfm to 4000'. Fluid level at 2900' from change in pump pressure. Started getting fluid returns when at 4000'. Increased nitrogen to 620 scfm from 4000' to tag depth at 10753'. PUH to 9900' and ran back to 10753' continuing to pump nitrogen at 620 scfm. No sand fill encountered. POOH pumping at 620 scfm until fluid returns ceased. Stopped pumping nitrogen at 2000', Turned well to PWS testers with FCP at 235 psi. POOH with coil tubing. Shut in swab valve. NOTE: Recovered 104 bbls fluid today for a total recovery of 321 bbls (58%) of 556 bbl. load. Shut well in and rigged back injector head. Closed and manually locked CT blind rams. Installed night cap. Held PJSM with BJ CoilTech, Veco crane, PWS tester, and Expro wireline personnel. BJ CoilTech rigged down coil tubing BOP from top of swab valve. NU night cap on top of BJ pump-in tee. MIRU Expro wireline to set a retrievable bridge plug above perforations, 10671'-10707' MD. MU lubricator and grease head. MU 3.80" OD gauge ring, spang jars, weight bar, CCL, and wireline swivel. Take lubricator and tool string to wellhead. RIH with 3.80" gauge ring easily to 7750' MD. Set down and attempted to PUH. Stuck at 7729' with no spang jar action and no CCL signal. Worked line for 20 min and pulled loose with returned CCL response. POOH with gauge ring and CCL. Tool string had sand grit all over it. RDMO Expro wireline. Set night cap on coil tubing flow tee. Plan to clean out sand from well with coil tubing and KCL water tomorrow. SWIFN. Held PJSM with BJ CoilTech, Veco crane, S&R vac truck, and PWS tester wireline personnel. ND MOC tree cap and NU BJ CoilTech CT BOP. Layed out and Legal Well Name: Common Well Name: Event Name: Contractor Name: Rig Name: Date SUSAN DIONNE 2 SUSAN DIONNE 2 ORIGINAL COMPLETION GLACIER DRILLLlNG GLACIER DRILLING C Sub From - To Hours od~ Code Phase 10/25/2004 07:30 - 10:30 10:30 - 12:30 12:30 - 14:30 14:30 - 16:30 16:30 - 23:00 23:00 - 00:30 1.50 RURD - COIL CMPSTM 10/27/2004 08:00 - 08:30 0.50 SAFETY MTG - CMPPRF 08:30 - 09:30 1.00 RURD - COIL CMPPRF 09:30 - 11 :30 2.00 RURD - ELEC CMPPRF 11 :30 - 12:30 1.00 RUNPUL ELEC CMPPRF 12:30 - 13:30 1.00 RUNPUL ELEC CMPPRF 13:30 - 15:00 1.50 RURD - ELEC CMPPRF 10/28/2004 07:00 - 07:30 0.50 SAFETY MTG - CMPPRF 07:30 - 11 :00 3.50 RURD - COIL CMPPRF Start: 9/17/2004 Rig Release: Rig Number: 1 Spud Date: 7/29/2002 End: Group: D~scription of Oþerations Printed: 2/6/2006 11 :01 :15 AM . . Page 8 of 16 Marathon Oil Company Operations Summary Report 3.50 RURD_ COIL CMPPRF connected fluid suction lines from Rain-far-Rent tanks to BJ fluid pump. Vac truck pulled on 5-6 bbls methanol water to pump through coil tubing and eliminate chance of ice plug shifting nozzle sleeve. Pumped methanol water and displaced with KCL water through coil tubing string. Installed 1-3/4" chisel nozzle. MU injector head to CT BOP. 0.50 TEST _ EQIP CMPPRF Pressure tested CT BOP to 250/4500 psi with KCL water. 3.00 JET_ WTR_ CMPPRF Opened well and noted 115 psi SICP. Blew gas pressure down quickly. RIH with wash nozzle on 1-3/4" coil tubing. Started pumping KCL water at 2.6 BPM at 800' MD. Obtained fluid returns at 2600' MD. RIH and tagged PBTD at 10755' MD. PUH above perfs to 10635' MD. 2.00 JET_ WTR_ CMPPRF Circulated bottoms up from 10635' with KCL water. Circulated a large amount of FlexSand for a 12 min. period just after getting bottoms up. Mixed and pumped a 40 bbl HEC sweep. Dropped ball to shift circulation port to direct flow upwards from end of coil tubing. Small slug of FlexSand at end of sweep. POOH with coil tubing at 100 fpm to 7000' MD pumping KCL water at 2.5 BPM. Slowed CT rate to 75 fpm from 7000' to surface to provide additional jetting through the tangent section of the hole. Shut well in and rigged back injector head and CT BOP's. Installed night cap. SWIFN. Wait on Expro wireline unit and personnel. Held PJSM with PWS tester, MOC, and Expro wireline personnel. MIRU Expro wireline to set a retrievable bridge plug above perforations, 10671'-10707' MD. MU lubricator and grease head. MU 3.80" OD gauge ring, spang jars, weight bar, CCL, and wireline swivel. Take lubricator and tool string to wellhead. SICP was 0 psi. 3.50 RUNPUL ELEC CMPPRF RIH to 200' and CCL stopped working. POOH and replace CCL. RIH and tagged up at 1708' MD. Tried to work through tight spot at 1705' MD several times without success. POOH and inspected gauge ring. No sand or new marks on tools. This is the same tool string run through this area at 200 fpm without incident on 10/27/2004 report. Redressed bevel on leading edge of gauge ring. RIH and tagged at same spot. Worked tools without success. Inspected wire to ensure line without kink or strand. Added 5' weight bar between gauge ring and spang jars and RIH. Tagged at same depth and could not work through. Rig back Expro equipment. Wait on Pollard slickline. Hold PJSM. Spot Pollard slickline unit and mast truck. MU 3.80" OD gauge ring, 3.60" centralizer, spang jars, hydraulic jars, and weight bar. Take lubricator to wellhead. RIH and tag at 1694' KB. POOH and PU 3" drive-down bailer. Bailed solid white fine sand (may be crushed frac sand) from 1694'-1727'. SWIFN. RDMO Pollard slickline. Held PJSM with BJ CoilTech, Veco crane, and PWS testerwireline personnel. ND MOC tree cap and NU BJ CoilTech CT BOP. Layed out and connected fluid suction lines from Rain-for-Rent tanks to BJ fluid pump. Installed 1-3/4" chisel nozzle. Loaded CT with KCL water. MU injector head to CT BOP. 1.00 TEST _ EQIP CMPPRF Pressure tested CT BOP to 250/4500 psi with KCL water. 3.50 JET_ WTR_ CMPPRF Opened well and noted 0 psi SICP. RIH with wash nozzle on 1-3/4" Legal Well Name: Common Well Name: Event Name: Contractor Name: Rig Name: Date SUSAN DIONNE 2 SUSAN DIONNE 2 ORIGINAL COMPLETION GLACIER DRILLLlNG GLACIER DRILLING Sub From - To Hours Code Code Phase 10/28/2004 07:30 - 11 :00 11 :00 - 11 :30 11 :30 - 14:30 14:30 - 16:30 16:30 - 18:30 2.00 JET_ WTR_ CMPPRF 18:30 - 20:30 2.00 RURD_ COIL CMPPRF 1 0/29/2004 07:00 - 08:00 1.00 WAlTON EQIP CMPPRF 08:00 - 08:30 0.50 SAFETY MTG_ CMPPRF 08:30 - 09:30 1.00 RURD - ELEC CMPPRF 09:30 - 13:00 13:00 - 14:00 1.00 RURD ELEC CMPPRF 14:00 - 15:00 1.00 WAlTON EQIP CMPPRF 15:00 - 16:00 1.00 RURD - SLlK CMPPRF 16:00 - 03:30 11.50 RUNPUL SLlK CMPPRF 03:30 - RURD SLlK CMPPRF 1 0/30/2004 07:00 - 07:30 0.50 SAFETY MTG_ CMPPRF 07:30 - 10:00 2.50 RURD - COIL CMPPRF 10:00 - 11 :00 11 :00 - 14:30 Start: Rig Release: Rig Number: Spud Date: 7/29/2002 End: Group: 9/17/2004 Description ofOperatiôn$ Printed: 2/6/2006 11 :01 :15 AM . . Page 9 of 16 Marathon Oil Company Operations Summêlry >Report coil tubing pumping KCL water at 2.5 BPM to 10719' MD. PUH pumping to 10615' with KCL water. Mixed and pumped a 50 bbl HEC sweep. Dropped ball to shift circulation port to direct flow upwards from end of coil tubing. POOH with coil tubing at 50 fpm to 6500' MD pumping KCL water at 2.6 BPM. Mixed and pumped a 25 bbl HEC sweep. PUH to 6000' and slowed CT rate to 25 fpm from 6000' to 2500' while pumping KCL water at 2.6 BPM. Mixed and pumped a 27 bbl HEC sweep. POOH to surface at 25 fpm while pumping KCL water at 2.6 BPM. Blew down coil tubing with nitrogen. Shut well in and rigged back injector head and CT BOP's. Installed night cap. SWIFN. Held PJSM with PWS tester, MOC, and Expro wireline personnel. MIRU Expro wireline to set a retrievable bridge plug above perforations, 10671 '-10707' MD. MU lubricator and grease head. MU 3.80" OD gauge ring, spang jars, weight bar, CCL, and wireline swivel. Take lubricator and tool string to wellhead. SICP was 0 psi. 1.00 RUNPUL ELEC CMPPRF Round trip 3.80" 00 gauge ring on Expro wireline to 10657' MD. 2.00 RUNPUL ELEC CMPPRF PU and RIH with Weatherford 3.770" OD WRP retrievable bridge plug, setting tool, Baker #1 0 slow-set firing head, and CCL on wireline. Set down at 2960' MD. PU and RIH with WRP. Correlated depth with Expro CBL run 20-Sept-2004. Set center of packing element on WRP 'at 10620' MD. Top of fishing neck at 10618.5' and bottom of WRP at 10621.8' MD. POOH logging two collars and RIH and tagged WRP at proper depth. 1.00 RUNPUL ELEC CMPPRF POOH with WRP setting tool assembly. 1.00 RURD_ ELEC CMPPRF LD setting tools (setting stud was sheared properly). Released Weatherford service hand. Pressure tested Expro Bowen x Otis connection to 4100 psi with methanol water. BJ CoilTech and Veco crane operator on location to warm up equipment. RD Expro from wellhead. 4.00 RURD_ COIL CMPPRF Connect suction lines to fluid tanks. MU 2" OD nozzle and 3' straight bar to coil tubing. Install CT BOP on top of pump-in tee. Take injector to wellhead. Pressure test CT BOP to 250/4500 psi with KCL water Opened well and attempted to pressure test the WRP to 2000 psi. Pressure bled off to 250 psi in less than one minute. Triple bocked in all surface lines and retested to 2000 psi. Pressure bled off at same slope as before and held at 250 psi. Opened bleed off tees downstream of all surface valves to ensure no fluid bypass. Appears that WRP is leaking. 1.00 RURD_ COIL CMPPRF RD BJ CoilTech. 0.50 SAFETY MTG_ CMPSTM Held PJSM with PWS tester, MOC, and Expro wireline personnel. 1.00 RURD_ ELEC CMPSTM MIRU Expro wireline to set a retrievable bridge plug above perforations, 10671 '-1 0707' MD and WRP at 10620' MD.. MU lubricator and grease head. MU 3.80" OD gauge ring, spang jars, weight bar, CCL, and wireline swivel. Take lubricator and tool string to wellhead. SICP was 0 psi. 2.00 RUNPUL ELEC CMPPRF Round trip 3.80" OD gauge ring on Expro wireline to 10620' MD. Tagged leaking WRP where previously set at 10620' MD. 3.00 RUNPUL ELEC CMPPRF PU and RIH with Weatherford 3.770" OD WRP retrievable bridge plug, setting tool, Baker #10 slow-set firing head, and CCL on wireline. Correlated depth with Expro CBL run 20-Sept-2004. Set center of Legal Well Name: Common Well Name: Event Name: Contractor Name: Rig Name: Date SUSAN DIONNE 2 SUSAN DIONNE 2 ORIGINAL COMPLETION GLACIER DRILLLlNG GLACIER DRILLING From - To Hours Code Sub Phase Code 10/30/2004 11 :00 - 14:30 14:30 - 16:30 3.50 JET_ WTR_ CMPPRF 2.00 JET_ WTR_ CMPPRF 2.50 JET_ WTR_ CMPPRF 16:30 - 19:00 19:00 - 20:30 1.50 JET_ WTR_ CMPPRF 20:30 - 21 :30 1.00 RURD - COIL CMPPRF 10/31/2004 07:00 - 07:30 0.50 SAFETY MTG_ CMPPRF 07:30 - 09:30 2.00 RURD - ELEC CMPPRF 09:30 - 10:30 10:30 - 12:30 12:30 - 13:30 13:30 - 14:30 14:30 - 18:30 18:30 - 19:30 11/2/2004 07:00 - 07:30 07:30 - 08:30 08:30 - 10:30 10:30 - 13:30 Start: 9/17/2004 Rig Release: Rig Number: 1 Spud Date: 7/29/2002 End: Group: Description Qf Operation~ Printed: 2/612006 11 :01 :15 AM . . Pðge 1 16 Marathon Oil COmpany Qperations Summary Repqrt packing element on WRP at 10580' MD. Top of fishing neck at 10578.5' and bottom ofWRP at 10581.8' MD. POOH and LD WRP setting tools. RD Expro wireline. BJ CoilTech on location warming up fluid pumper and CT unit. Had difficulty starting engines due to diesel gelling. Layed suction line from fluid pumper to Rain-for-Rent tanks. Pressure tested WRP to 2000 psi with KCL water-good test. Had to change out O-ring on tree cap to achieve test. ND MOC tree cap and NU BJ CoilTech CT BOP. Installed 2" nozzle and 3' straight bar to coil tubing. MU injector head to CT BOP. Shell tested BOP to 250/4500 psi with KCL water. RIH with coil tubing to 6700' MD at 65 fpm pumping nitrogen at 750 scfm down CT annulus and taking fluid up coil tubing to gas buster. Reverse circulated nitrogen maintaining pump pressure below 1800 psi to prevent collapsing coil tubing. RIH reverse circulating nitrogen to 10,550' MD. BJ CoilTech down one hour to reprime engine on nitrogen unit after running out of diesel. Line added to account for BJ CoilTech downtime after running out of diesel. It occurred sometime between 01 :00 and 06:00. Finished reverse circulating nitrogen to 10,550' MD. All fluid recovered from well bore. POOH with coil tubing. Trapped 1100 psi surface nitrogen pressure on well bore for underbalanced perforating. Expro on location at 0830 hrs. RD BJ CoilTech from wellhead. Set back injector head and BOP. RU Expro wireline to perforate. Held PJSM with Expro, PWS, and MOC personnel. Armed 30' 3-3/8" carrier and take lubricator to tree. Pressure test lubricator with methanol to 3000 psi. Spent one hour thawing frozen air line hose - sometime between 11 :30 and 14:00. RIH with 3.375" 00 perforating gun loaded 28' with SDP-3125-311 NT3, 25 gm. charges, 6 SPF on CCL. Correlated depth with Expro GR-CCL log run Sept-20-2004 and Reeves Induction Log run 20-Aug-2004. Perforated 10,302-10,330' KB with 1050 nitrogen psi WHP. WHP increased 15 psi. POOH with gun. WHP at 1065 psi when out of hole with gun #1. Perforating gun was dry. RD Expro from wellhead and aborted perforating for the day due to high winds. WHP remains at 1065 psi. PWS monitored pressure but did not flow well overnight. Held PJSM with BJ CoilTech personnel and Veco crane operator. Began rigging down BJ Coil Tech coil tubing equipment. RD CT BOP and flow tee from swab valve. Expro wireline on location at 0845 hrs to perforate. Started Expro equipment. SICP in AM was 1100 psi with nitrogen in well bore. 0.50 RURD_ ELEC CMPPRF RU Expro perforating equipment. BJ CoilTech rigging down. 0.50 SAFETY MTG_ CMPPRF Held PJSM with Expro personnel. 0.50 RURD_ ELEC CMPPRF Armed 30' 3-3/8" carrier and take lubricator to tree. Pressure test lubricator with 1100 psi WHP. 2.50 RUNPUL ELEC CMPPRF RIH with 3.375" OD perforating gun loaded 30' with SDP-3125-311 NT3, 25 gm. charges, 6 SPF on CCL. Correlated depth with Expro GR-CCL log run Sept-20-2004 and Reeves Induction Log run 20-Aug-2004. Became temporarily stuck twice around 10302' (existing top perf depth Legal Well Name: SUSAN DIONNE 2 Common Well Name: SUSAN DIONNE 2 Event Name: ORIGINAL COMPLETION Contractor Name: GLACIER DRILLLlNG Rig Name: GLACIER DRILLING Date From - To Hours C Sub Phase .. od~Code 11/2/2004 10:30 - 13:30 3.00 RUNPUL ELEC CMPPRF 13:30 - 14:30 1.00 RUNPUL ELEC CMPPRF 14:30 - 15:30 1.00 RURD - ELEC CMPPRF 15:30 - 17:00 1.50 RURD - COIL CMPPRF 17:00 - 18:00 1.00 TEST_ PKR_ CMPPRF 18:00 - 19:00 1.00 RURD - COIL CMPPRF 19:00 - 22:30 3.50 JET_ N2 - CMPPRF 22:30 - 01 :00 2.50 JET_ N2 - CMPPRF 01 :00 - 05:00 4.00 JET_ N2 - CMPPRF 05:00 - 06:00 1.00 JET_ N2 - CMPPRF 11/3/2004 06:00 - 07:30 1.50 JET_ N2 - CMPPRF 07:30 - 09:00 1.50 RUNPUL COIL CMPPRF 09:00 - 10:00 1.00 RURD - COIL CMPPRF 10:00 - 11 :00 1.00 RURD ELEC CMPPRF 11 :00 - 11 :30 0.50 SAFETY MTG_ CMPPRF 11 :30 - 13:00 1.50 RURD - ELEC CMPPRF 13:00 - 14:00 1.00 RURD - ELEC CMPPRF 14:00 - 16:30 2.50 RUNPUL ELEC CMPPRF 16:30 - 18:00 1.50 PERF - CSG - CMPPRF 18:00 - 18:30 0.50 RUR.D_ ELEC CMPPRF 11/4/2004 07:30 - 08:00 0.50 SAFETY MTG_ CMPPRF 08:00 - 09:00 1.00 RURD - COIL CMPPRF 09:00 - 09:30 09:30 - 10:00 10:00 - 10:30 10:30 - 13:00 Start: 9/17/2004 Rig Release: Rig Number: 1 Spud Date: 7/29/2002 End: Group: Description of Operations· Printed: 2/6/2006 11 :01 :15 AM . . Marathon Oil Company Operations Summary Report 2.50 RUNPUL ELEC CMPPRF from yesterday) while correlating depth. 1.50 PERF _ CSG_ CMPPRF Perforated 10,272-10,302' KB with 1100 nitrogen psi WHP. WHP increased 20 psi. POOH with gun. WHP at 1065 psi when out of hole with gun #2. Perforating gun was wet. 1.00 RURD_ ELEC CMPPRF Armed 30' 3-3/8" carrier and take lubricator to tree. Pressure test lubricator with 1120 psi WHP. BJ CoilTech finished RDMO coil tubing equipment. 2.00 RUNPUL ELEC CMPPRF RIH with 3.375" OD perforating gun loaded 30' with SDP-3125-311NT3, 25 gm. charges, 6 SPF on CCL. Correlated depth with Expro GR-CCL log run Sept-20-2004 and Reeves Induction Log run 20-Aug-2004. Became temporarily stuck once around 10310' while correlating depth. Perforated 10,242-10,272' KB with 1050 nitrogen psi WHP. WHP did not increase. POOH with gun. WHP at 1050 psi when out of hole with gun #3. Perforating gun was wet. RD Expro wireline from tree. Held PJSM with Expro, PWS, and MOC. RU Expro to run static pressure gradient. Thawed out end of crane boom with Chinook heater. MU wireline BOP and pump-in tee to Otis tree connection. MU 1.375" tandem saphire P-T gauge and wireline swivel. Take lubricator to wellhead. Pressure tested to 1100 psi WHP. 1.50 LOG_ CSG_ CMPPRF RIH with gauges easily to 1900' MD. Progress slowed considerably to 2200' MD. POOH to add weight bars. 4.00 LOG_ ELEC CMPPRF RIH with gauges and weight bars easily. Took 10 min. static bench at 10230' and 3 min. benches at 10100',10000',9800',9500',9000', 8000',6000',4000',2000', and at surface while POOH. Steam-on-Wheels on location at 1230 hrs to thaw KCL water in Rain-for-Rent tanks to allow transport to G&I plant for disposal. 1.50 RURD_ ELEC CMPPRF RDMO Expro wireline. Downloaded gauges-good data. Fluid level around 10150' MD. 12.00 FLOW_ TEST CMPPRF Flow test and monitor pressure. Two S&R vac trucks hauled KCL water left over from coil tubing work to G&I for disposal. Airport Rental delivered and RU ground heater on gas buster tank to thaw ice and allow transport for disposal. 0.50 SAFETY MTG_ CMPPRF Held PJSM. 0.50 RURD_ OTHR CMPPRF MIRU Pollard Hot Oiler and Weaver Bros. methanol delivery truck. Installed tree cap hanger to 2", 1502 connection on tree. MU and pressure test to 1600 psi Pollard pump line to tree cap connection. Opened tree valves. Pump 38 bbls methanol down well bore to provide 800 psi "tamp" pressure for StimTube treatment scheduled for tomorrow. Held PJSM with Expro, PWS, and MOC. MIRU Expro to run gauge ring and StimTube. Pressure tested lubricator to 750 psi WHP. Installed SPIDR gauge. Roundtripped 2.70" gauge ring, spang jars, and three tungsten weight bars to 10350' MD on wireline. PWS drew down WHP to 500 psi while tripping gauge ring. Held PJSM. Went to radio silence. MU 12' of 2" OD StimTube (12.67' overall w/2.25" 00 connectors), CCL, and weight bars and pushed into lubricator. Took lubricator to wellhead. RIH with StimTube, CCL, and three tungsten weight bars. Correlated depth with Expro CBL and positioned top of propellant at 10254' MD. WHP was at 500 psi prior to detonation of StimTube. Legal Well Name: Common Well Name: Event Name: Contractor Name: Rig Name: Date SUSAN DIONNE 2 SUSAN DIONNE 2 ORIGINAL COMPLETION GLACIER DRILLLlNG GLACIER DRILLING Sub From - To Hours Code<Code Phase 11/4/2004 10:30 - 13:00 13:00 - 14:30 14:30 - 15:30 15:30 - 17:30 17:30 - 18:30 1.00 PERF - CSG - CMPPRF 18:30 - 19:30 1.00 RURD_ ELEC CMPPRF 11/5/2004 08:00 - 08:30 0.50 SAFETY MTG - CMPPRF 08:30 - 10:30 2.00 RURD - ELEC CMPPRF 10:30 - 12:00 12:00 - 16:00 16:00 - 17:30 11/6/2004 09:00 - 21 :00 11/9/2004 15:30 - 16:00 16:00 - 16:30 16:30 - 19:00 2.50 PUMP - TRET CMPPRF 11/10/2004 07:30 - 08:00 0.50 SAFETY MTG_ CMPPRF 08:00 - 09:30 1.50 RURD - ELEC CMPPRF 09:30 - 13:30 4.00 RUNPUL ELEC CMPPRF 13:30 - 14:00 0.50 SAFETY MTG_ CMPPRF 14:00 - 15:00 1.00 RURD - ELEC CMPPRF 15:00 - 18:00 3.00 RUNPUL ELEC CMPPRF Start: 9/17/2004 Rig Release: Rig Number: 1 Spud Date: 7/29/2002 End: Group: Description of Operatio~s Printed: 2/6/2006 11 :01 :15 AM . . Page 12 of 16 Marathon Oil Company Operations Summary Report 1.00 RUNPUL ELEC CMPPRF Detonated StimTube and line tension immediately dropped from 3100 Ibs to 1800 Ibs. POOH slowly until started getting CCL readings. POOH with StimTube tool string. WHP still at 510 psi after one hour. 1.00 RURD _ ELEC CMPPRF LD lubricator and tool string. Good propellant burn-all tools recovered. Monitored well pressure overnight. Plan to run second StimTube run tomorrow AM. 0.50 SAFETY MTG_ CMPPRF Held PJSM with Expro, PWS, and MOC. 1.50 RURD_ ELEC CMPPRF MIRU Expro to shoot StimTube Run #2. Retied rope socket. MU 12' of 2" 00 StimTube (12.67' overall w/2.25" OD connectors), CCL, and weight bars and pushed into lubricator. Took lubricator to wellhead. Pressure tested with 530 psi WHP. 3.00 RUNPUL ELEC CMPPRF RIH with StimTube, CCL, and three tungsten weight bars. Correlated depth with Expro CBL and positioned top of propellant at 10308' MD. WHP was at 540 psi prior to detonation of StimTube. 1.00 RUNPUL ELEC CMPPRF Detonated StimTube and line tension immediately dropped from 2900 Ibs to 2200 Ibs. POOH slowly until started getting CCL readings. POOH with StimTube tool string. WHP at 550 psi after one hour. 1.00 RURD _ ELEC CMPPRF LD lubricator and tool string. Good propellant burn-all tools recovered. RDMO Expro wireline. PWS will attempt to flow well overnight. If well will not flow by drawing down the WHP to 0 psi, will attempt two short buildups and flow periods and then shut well in for overnight buildup. MIRU BJ Services nitrogen unit. Spotted equipment and tied into test line off of wing valve. Held PJSM with BJ, PWS, and MOC personnel. Cooled down nitrogen unit. Installed data header to port in well cap flange. Connected SPIDR and Data Trap gauges to data header. Pressure tested pump line to 4000 psi. Opened well with 149 psi WHP (0.57 sp gr gas). Pumped nitrogen at 2000 scfm until WHP reached 1500 psi. Calculated fluid level with 1500 psi WHP is 5260' MD. Note: Prior to bleeding well down from 500 psi to 0 psi yesterday, the fluid level was about 7650' MD (10150' MD fluid level plus 38 bbls methanol). Decreased nitrogen rate and held constant at 1500 scfm throughout the rest of the job. Pressure climbed steadily to 3180 psi after 47 minutes pump time and then broke back to 3160 psi. Pressure climbed steadily to 3330 psi and then broke back to 3200 psi. Pressure climbed steadily to 3550 psi at 80 minutes pump time (18:07 hrs) at which time pumping prematurely ceased due to failure of centrifugal pump bushing on nitrogen unit. Total nitrogen pumped was 137000 scf. Note: This volume is less than that necessary to fill the well bore at 3550 psi WHP. Most likely not all of the fluid had exited the wellbore when pumping ceased. BJ Services monitored falloff pressure for 1-1/2 hours. RDMO BJ Services nitrogen unit. Left well open to SPIDR and DataTrap gauges. WHP at 21:15 was 2810 psi (1938 hrs). Pressure fell 740 psi in 1-1/2 hours. Move in and spotted Expro perforating equipment. Held PJSM with Expro, PWS, and MOC personnel to discuss operational plan and potential hazards. RU Expro perforating equipment. Armed 20' 3-3/8" carrier and take lubricator to tree. Pressure test lubricator with 1120 psi WHP. Bled pressure down to 0 psi. Last gas gravity reading was 0.65. RIH with 3.375" OD perforating gun loaded 20' with SDP-3125-311NT3, Legal Well Name: Common Well Name: Event Name: Contractor Name: Rig Name: Date SUSAN DIONNE 2 SUSAN DIONNE 2 ORIGINAL COMPLETION GLACIER DRILLLlNG GLACIER DRILLING Sub From- To Hours Code Code Phase 11/10/2004 18:00 - 19:00 19:00 - 20:00 11/11/2004 08:30 - 09:00 09:00 - 10:30 10:30 - 13:30 13:30 - 14:30 14:30 - 15:30 11/12/2004 13:30 - 15:30 2.00 RURD - OTHR CMPFLW 15:30 - 16:00 0.50 SAFETY MTG_ CMPFLW 16:00 - 16:30 0.50 RURD - OTHR CMPFLW 16:30 - 20:00 3.50 PUMP - N2 - CMPFLW 20:00 - 21 :00 1.00 RURD - OTHR CMPFLW 11/17/2004 09:30 - 10:00 0.50 RURD - ELEC CMPPRF 10:00 - 10:30 0.50 SAFETY MTG_ CMPPRF 10:30 - 11 :00 0.50 RURD_ ELEC CMPPRF 11 :00 - 11 :30 0.50 RURD - ELEC CMPPRF 11 :30 - 13:00 1.50 RUNPUL ELEC CMPPRF Start: 9/17/2004 Rig Release: Rig Number: 1 Spud Date: 7/29/2002 End: Group: Description of Operations Printed: 2/6/2006 11 :01 :15 AM . . Page 13 of 16 M~rathon Oil Company Operations Summary Repon Legal Well Name: SUSAN DIONNE 2 Common Well Name: SUSAN DIONNE 2 Event Name: ORIGINAL COMPLETION Contractor Name: GLACIER DRILLLlNG Rig Name: GLACIER DRILLING Date I From- To Hours Code· ~gdbe Phase 11/17/2004 11 :30 - 13:00 1.50 RUNPUL ELEC CMPPRF 13:00 - 14:30 1.50 PERF - CSG_ CMPPRF 14:30 - 15:00 0.50 RURD - ELEC CMPPRF 15:00 - 16:00 1.00 RUNPUL ELEC CMPPRF 16:00 - 17:00 1.00 PERF - CSG_ CMPPRF 17:00 - 18:00 1.00 RURD_ ELEC CMPPRF 11/18/2004 07:30 - 08:00 0.50 SAFETY MTG_ CMPPRF 08:00 - 09:00 1.00 RURD - ELEC CMPPRF 09:00 - 10:00 1.00 RUNPUL ELEC CMPPRF 10:00 - 11 :00 1.00 PERF _ CSG_ CMPPRF 11 :00 - 12:30 1.50 RURD_ ELEC CMPPRF 12:30 - 13:30 1.00 RUNPUL ELEC CMPPRF 13:30 - 14:30 1.00 PERF _ CSG_ CMPPRF 14:30 - 16:00 1.50 RURD_ ELEC CMPPRF 11/24/2004 07:30 - 08:00 08:00 - 09:30 0.50 SAFETY MTG_ CMPPRF 1.50 RURD_ SLlK CMPPRF 4.50 RUNPUL SLlK CMPPRF 09:30 - 14:00 14:00 - 15:00 11/30/2004 11 :00 - 11 :30 1.00 RURD_ SLlK CMPPRF 0.50 SAFETY MTG_ CMPPRF 11 :30 - 13:00 1.50 RURD_ ELEC CMPPRF Start: 9/17/2004 Rig Release: Rig Number: Spud Date: 7/29/2002 End: Group: De~criptionof Operations 25 gm. charges, 6 SPF on CCL. Correlated depth with Expro GR-CCL log run Sept-20-2004 and Reeves Induction Log run 20-Aug-2004. Perforated 10,161-10,181' KB with 15 psi WHP. WHP increased to 20 psi. POOH with gun. WHP at 35 psi when out of hole with gun #2. All shots fired and round. Armed 41.5' 3-3/8" carrier and take lubricator to tree. Bled pressure down from 35 psi to 0 psi. RIH with 3.375" OD perforating gun loaded 40' with SDP-3125-311 NT3, 25 gm. charges, 6 SPF on CCL. Correlated depth with Expro GR-CCL log run Sept-20-2004 and Reeves Induction Log run 20-Aug-2004. Perforated 10,099-10,140' KB with 0 psi WHP. Left well open while POOH. All shots fired and round. RD Expro wireline from tree. Plan to perforate additional pay tomorrow. PWS well testers to attempt to flow well overnight. Held PJSM with Expro, PWS, and MOC personnel to discuss operational plan and potential hazards. RU Expro perforating equipment. Armed 35' 3-3/8" carrier and take lubricator to tree. Pressure test lubricator with 400 psi WHP. RIH with 3.375" OD perforating gun loaded 35' with SDP-3125-311 NT3, 25 gm. charges, 6 SPF on CCL. Flowed well while RIH. Possible fluid level at 3500' MD. Correlated depth with Expro GR-CCL log run Sept-20-2004 and Reeves Induction Log run 20-Aug-2004. Perforated 10,064-10,099' KB with 470 psi WHP. WHP increased to 475 psi. POOH with gun. Flowed well while POOH. All shots fired and round. Wireline twisted at top shieve just as gun reached surface which put several kinks in the line. Cut kinked line and retied rope socket. Armed 22' 3-3/8" carrier and take lubricator to tree. Pressure test lubricator with 200 psi WHP. Well flowing about 680 mcfd at 180 psi FTP. RIH with 3.375" OD perforating gun loaded 22' with SDP-3125-311 NT3, 25 gm. charges, 6 SPF on CCL. Correlated depth with Expro GR-CCL log run Sept-20-2004 and Reeves Induction Log run 20-Aug-2004. Tagged up at 10,569' MD (top of fishing neck of upper WRP at 10578.5' MD). Perforated 10,009-10,031' KB with 420 psi WHP. WHP increased to 580 psi in 15 minutes. Flowed well on 18/64" choke while POOH with gun. All shots fired and round. RDMO Expro wireline. PWS well testers flowed well down to a fairly stable 450 psi FTP on a 18/64" choke at 880 MCFD rate. Well unloaded 1.7 bbls of 7.6 #Igal fluid (methanol is 6.8 #Igal). Opened choke progessively until well started unloading fluid at 100 psi. Held PJSM with Pollard, PWS, and MOC personnel. Spot Pollard Slickline equipment and rigged up to run tandem pressure-temperature gauges. RIH with tandem pressure gauges with well flowing at 760 Mcfd at 80 psi FTP. Took static gradient surveys while POOH at 10330',10240', 10180', 10160', 10140', 10060', 10035', 10000',9500',9000',8000', 6000',4000',2000', and at surface. Check data. Data is good. RDMO Pollard Slickline. Held PJSM with Expro, PWS, and MOC personnel to discuss operational plan and potential hazards. RU Expro perforating equipment. Armed 20' 3-3/8" carrier and take lubricator to tree. Pressure test lubricator with 1200 psi WHP. Printed: 2/6/2006 11 :01 :15 AM .' . Page Marathon Oil Compª{1Y ()p~rations Summary R~po.rt 1.50 RUNPUL ELEC CMPPRF RIH with 3.375" OD perforating gun loaded 20' with SDP-3125-311 NT3, 25 gm. charges, 6 SPF on CCL. Flowed well while RIH. Possible fluid level at 3500' MD. Correlated depth with Expro GR-CCL log run Sept-20-2004 and Reeves Induction Log run 20-Aug-2004. Perforated 9727-9747' KB with 1110 psi WHP. WHP increased to 1150 psi in 10 minutes POOH with gun. Flowed well while POOH. All shots fired and round. RDMO Expro wireline. Spot Pollard Slickline equipment and rigged up to run tandem pressure-temperature gauges. Held PJSM with Pollard, PWS, and MOC personnel. RIH with tandem pressure gauges with well flowing at 500 Mcfd at 440 psi FTP. Took static gradient surveys while POOH at 10330', 10240', 10180', 10160', 10140', 10060', 10035', 10000', 9750', 9725', 9500', 9000', 8000', 6000', 4000', 2000', and at surface. Check data. Data is good. LD gauges and PU 3.75" OD gauge ring, 3.62" OD centralizer, roller stem, and tungsten weight bars. Shut well in to run gauge ring. Roundtrip 3.75" OD gauge ring to 9800' MD with no trouble. RDMO Pollard Slickline. Opened well back up to flow test. Held PJSM with Expro, PWS, Weatherford, and MOC personnel. Move in and spotted Expro Wireline equipment to run and set Weatherford Eclipse straddle packer assembly across wet perforations, 9727-9747' KB. Well flowing 250 Mscfd and 480 BWPD at 280 psi FTP. High winds and wet snow hampering rig up. Shut well in to rig up wireline BOP. 1.50 RURD_ ELEC CMPPRF Finished rigging up and took lubricator to the tree. Pressure tested to 900 psi with WHP. Had to rig up a methanol line to pump into the lubricator to eliminate a hydrate plug in the tree. 4.00 SETREL PKR_ CMPPRF PU and RIH with Weatherford 3.74" OD Eclipse packer (3.35' overall length, 3.0' center of element to top of packer, 2.375" ID), setting tool, Baker #10 slow-set tool, and CCL on wireline. Correlated depth with Expro GR-CCL log run Sept-20-2004 and Reeves Induction Log run 20-Aug-2004. Set middle of packing element at 9751.9' KB with top of packer at 9748.9' KB and bottom of packer at 9752.25' MD. PUH and then RIH and tagged packer. POOH. 0.50 SETREL PKR_ CMPPRF Redressed Baker #1 0 firing head. Added lubricator sections. MU top packer straddle assembly. 2.50 SETREL PKR_ CMPPRF PU and RIH with Weatherford snap-latch seal assembly (0.83' long, 3.74" OD, 2.25" ID), 23.56' joint of 2-7/8" tubing (2.441" ID), Weatherford 3.74" 00 Eclipse packer (3.50' overall length, 3.0' center of element to top of packer, 2.375" ID), setting tool, Baker #1 0 slow-set tool, and CCL on wireline. Latched into bottom packer and pulled 650 Ibs over to verify latch. Set top straddle packer. POOH and LD setting tools. Top of upper packer at 9721' KB. Middle of upper packer element at 9724' KB. Minimum ID through straddle packer is 2.235" in snap latch seal assembly. 1.00 RURD_ ELEC CMPPRF LD lubricator and setting tools. ND wireline BOP. Installed night cap on tree. Flow tested well overnight. 0.50 SAFETY MTG_ CMPPRF Held PJSM with Expro, PWS, and MOC personnel. 1.00 RURD_ ELEC CMPPRF RU Expro perforating equipment. Armed 20' 3-3/8" carrier and take lubricator to tree. Pressure test lubricator with 1200 psi WHP. Legal Well Name: Common Well Name: Event Name: Contractor Name: Rig Name: DatèFrom -To SUSAN DIONNE 2 SUSAN DIONNE 2 ORIGINAL COMPLETION GLACIER DRILLLlNG GLACIER DRILLING . Sub .I-Iou~s Code· Code Phase 11/30/2004 13:00 - 14:30 14:30 - 15:30 1.00 PERF _ CSG_ CMPPRF 15:30 - 16:30 1.00 RURD_ ELEC CMPPRF 12/2/2004 07:30 - 10:00 2.50 RURD - SLlK CMPPRF 10:00 - 10:30 0.50 SAFETY MTG_ CMPPRF 10:30 - 15:30 5.00 RUNPUL SLlK CMPPRF 15:30 - 16:00 0.50 RURD - SLlK CMPPRF 16:00 - 17:30 1.50 RUNPUL SLlK CMPPRF 17:30 - 19:00 1.50 RURD_ SLlK CMPPRF 12/3/2004 08:30 - 09:00 0.50 SAFETY MTG_ CMPPRF 09:00 - 11 :30 2.50 RURD - ELEC CMPPRF 11 :30 - 13:00 13:00 - 17:00 17:00 - 17:30 17:30 - 20:00 20:00 - 21 :00 12/4/2004 09:00 - 09:30 09:30 - 10:30 Start: 9/17/2004 Rig Release: Rig Number: 1 Spud Date: 7/29/2002 End: Group: Descrìption of Operations Pr¡ nted: 2/6/2006 11:01: 15 AM . . Page 15 of 16 Marathon Oil Company Operations Summary Report 1.00 RUNPUL ELEC CMPPRF RIH with 3.375" OD perforating gun loaded 20' with SDP-3125-311 NT3, 25 gm. charges, 6 SPF on CCL. Choked well back to 750 FTP while RIH. Correlated depth with Expro GR-CCL log run Sept-20-2004 and Reeves Induction Log run 20-Aug-2004. Trobleshot Expro wireline computer. Problems obtaining proper grid for correlation. Perforated 7766-7786' KB with 720 psi WHP. WHP increased to 780 psi in 15 minutes POOH with gun. Flowed well while POOH. All shots fired and round. RDMO Expro wireline. Left well on test. Held PJSM with Expro, PWS, and MOC personnel. RU Expro perforating equipment. Armed 41' 3-3/8" carrier and take lubricator to tree. Pressure test lubricator with 700 psi WHP. RIH with 3.375" OD perforating gun loaded 40' with SDP-3125-311 NT3, 25 gm. charges, 6 SPF on CCL. Choked well back to 750 FTP while RIH. Correlated depth with Expro GR-CCL log run Sept-20-2004 and Reeves Induction Log run 20-Aug-2004. Perforated 7785-7826' KB with 720 psi WHP. WHP increased to 900 psi in 15 minutes POOH with gun. Flowed well while POOH. All shots fired and round. RDMO Expro wireline. Left well on test. Held PJSM with Expro and MOC personnel. Filled out and reviewed conditions of the Safe Work Permit. Discussed potential hazards. Spotted Expro Wireline equipment. RU wireline valve and pump-in tee to top of swab valve. MU 2.25" OD swedge, jars, two tungsten weight bars, and CCL to rope socket. Opened well with 1980 psi SITP. RIH with swedge on wireline and tagged at 9745' MD (straddle packer seal bore). POOH with swedge. LD swedge and PU 1-11/16" OD Spartec Tandem Pressure-Temperature real-time gauges with GR RIH with poT gauges on wireline. Static fluid level at 7774' MD (top perforations at 7766-7826' MD). Logged down pass. Tagged hard at 10015' MD. Tried to work through three times without success. POOH logging poT from 10015' to 7500' MD on up pass. Took static benches every 1000' to surface starting at 7000'. RDMO Expro Wireline. Held PJSM with Pollard and MOC personnel. Filled out and reviewed conditions of the Safe Work Permit. Discussed potential hazards. MIRU Pollard Slickline. Pressure tested lubricator to 750 psi WHP. Opened well and RIH with 2.0" OD 5' long DD bailer and 1.5" tool string on slickline. No weight fluctuation running through straddle packer at 9700'. Tagged at 10026' WL KB. Worked bailer. POOH with bailer. Slight weight fluctuation while pulling up through straddle packer. Recovered about 0.8 gals of grey material with consistency of putty (no grit). Took sample. RIH with 5' DD bailer and tagged at 10027' WL KB. Worked bailer and POOH. Recovered same amount and type of material on last run. Added another 5' section of 2" DD bailer and RIH. Tagged at 10028' WL KB. Worked bailer and POOH. Recovered same material. RIH with 10' bailer and tagged again at 10028' WL KB. Worked bailer and POOH. Recovered same material. Legal Well Name: Common Well Name: Event Name: Contractor Name: Rig Name: SUSAN DIONNE 2 SUSAN DIONNE 2 ORIGINAL COMPLETION GLACIER DRILLLlNG GLACIER DRILLING Sub HoursÇod~j.Code Phase Date - To 12/4/2004 10:30 - 11 :30 11 :30 - 14:00 2.50 ELEC CMPPRF 14:00 - 15:00 1.00 PERF _ CSG_ CMPPRF 15:00 - 16:00 1.00 RURD ELEC CMPPRF 12/6/2004 08:00 - 08:30 0.50 SAFETY MTG_ CMPPRF 08:30 - 09:30 1.00 RURD - ELEC CMPPRF 09:30 - 10:30 1.00 RUNPUL ELEC CMPPRF 10:30 - 11 :30 1.00 PERF _ CSG_ CMPPRF 11 :30 - 12:30 1.00 RURD - ELEC CMPPRF 11/16/2005 08:00 - 08:30 0.50 SAFETY MTG_ CMPPRF 08:30 - 10:30 2.00 RURD_ ELEC CMPPRF 10:30 - 12:00 1.50 RUNPUL ELEC CMPPRF 12:00 - 12:30 0.50 RUNPUL ELEC CMPPRF 12:30 - 13:00 0.50 RUNPUL ELEC CMPPRF 13:00 - 15:30 2.50 RUNPUL ELEC CMPPRF 15:30 - 17:00 1.50 RUNPUL ELEC CMPPRF 17:00 - 18:00 1.00 RURD ELEC CMPPRF 12/6/2005 09:00 - 09:30 0.50 SAFETY MTG - CMPPRF 09:30 - 11 :00 1.50 RURD SLlK CMPPRF 11 :00 - 12:00 1.00 RUNPUL SLlK CMPPRF 12:00 - 12:30 0.50 RUNPUL SLlK CMPPRF 12:30 - 13:30 1.00 RUNPUL SLlK CMPPRF 13:30 - 15:00 1.50 RUNPUL SLlK CMPPRF 15:00 - 16:30 1.50 RUNPUL SLlK CMPPRF Start: 9/17/2004 Rig Release: Rig Number: 1 Spud Date: 7/29/2002 End: Group: Description of Operations Printed: 2/6/2006 11:01:15AM Legal Well Name: Common Well Name: Event Name: Contractor Name: Rig Name: Date Frórn ~ To 12/6/2005 16:30 - 18:00 . . Marathon Oil Company Operations Summary J~eport SUSAN DIONNE 2 SUSAN DIONNE 2 ORIGINAL COMPLETION GLACIER DRILLLlNG GLACIER DRILLING HOUrSC()dei>~6Je Phase Start: 9/17/2004 Rig Release: Rig Number: 1 Spud Date: 7/29/2002 End: Group: 1.50 RURD_ SLlK CMPPRF RDMO Pollard Wireline. Description of Operations Printed: 2/6/2006 11 :01 :15 AM . . Ir Ii , j ¡ ·u FRANK H. MURKOWSKI, GOVERNOR ~1#ASIiA. OIL AND GAS CONSERVATION COMMISSION 333 W. 7'H AVENUE, SUITE 100. ANCHORAGE, ALASKA 99501-3539 PHONE (907) 279-1433 FAX (907) 276-7542 Ken Walsh Senior Production Engineer Marathon Oil Company PO Box 1949 Kenai, AK 99611 Ninilchik Unit, Susan Dionne #2 306-035 Dear Mr . Walsh: Enclosed is the approved Application for Sundry Approval relating to the above referenced well. Please note the conditions of approval set out in the enclosed form. When providing notice for a representative of the Commission to witness any required test, contact the Commission's petroleum field inspector at (907) 659-3607 (pager). As provided in AS .3.1.05.080, within 20 days after written notice of this decision, or such further time as the Commission grants for good cause shown, a person affected by it may file with the Commission an application for rehearing. A request for rehearing is considered timely if it is received by 4:30 PM on the 23rd day following the date of this letter, or the next working day if the 23rd day falls on a holiday or weekend. A person may not appeal a Commission decision to Superior Court unless rehearing has been requested. Sincerely, al4/~ Cathy P. Foerster Commissioner DATED this l$tday of February, 2006 Encl. . STATE OF ALASKA A AL OIL AND GAS CONSERVATION COM~ON JAN 3 1 2006 APPLICATION FOR SUNDRY APPROVALS 20 MC 25.280 Alaska Oil & Gas Cons. Commission Abandon U Suspend U Operational shutdown U Perforate G:J / Waiver LAnchorage Other U Alter casing 0 Repair well 0 Plug Perforations 0 Stimulate 0 Time Extension 0 Change approved program 0 Pull Tubing 0 Perforate New Pool 0 Re-enter Suspended Well 0 2. Operator Name: 4. Current Well Class: 5. Permit to Drill Number: / 1. Type of Request: \¿.J GREc:t:f\1! D Development Stratigraphic o o 6. API Number: 50.133-20541'-/ Exploratory 0 o 204-107 ,/ MARATHON OIL COMPANY 3. Address: P. o. Box 1949, Kenai, AK 99611-1949 7. KB Elevation (ft): 156' KB (21' AGL) 8. Property Designation: ADL 359242/1 &ADL 389180 11. Total Depth MD (ft): 11,094' Casing Structural Conductor Surface Intermediate Production Liner Perforation Depth MD (ft): 7766'-10330' Gross Packers and SSSV Type: Service Total Depth TVD (ft): 8007' Length 9. Well Name and Number: Ninilchik Unit/Susan Dionne #2 / 10. Field/Pools(s): NinilchiklTyonek PRESENT WELL CONDITION SUMMARY I Effective Depth MD (ft): I Effective D. epth TVD (ft): 10,970' (float collar) 7890' Size MD / TVD 20" 133' 133' NIA Plugs (measured): 10580'/10620'/10770' Burst JUnk (measured): Collapse NIA 133 1906' 5921' 11,073' 95/8" 7" 4-1/2" 4750 7240 8430 6870 5410 7500 1927' 5942' 11094' 1575' 3420' 8007' ¡Perforation Depth TVD (ft): 4962'-7299' Gross Baker 4-1/2" Midstring ZXP ITubing Size: NIA ¡TUbing Grade: Packers and SSSV MD (ft): ITubing MD (ft): 5733' 12. Attachments: Description Summary of Proposal U Detailed Operations Program 0 BOP Sketch 0 14. Estimated Date for Commencing Operations: 16. Verbal Approval: Commission Representative: 17. I hereby certify that the foregoing is true and correct to the best of my knowledge. Contact Printed Name K~ D. Wals~ II () Title Senior Production Engineer .Signature \ ~ -D. ~ Phone 907-394-3060 Date COMMISSION USE ONLY 13. Well Class after proposed work: Exploratory 0 Development 15. Well Status after proposed work: 2/1/2006 Oil 0 Gas 0 WAG 0 GINJ 0 WDSPL / o Service 0 o o Abandoned o o Date: Plugged WINJ Ken D. Walsh 1/27/2006 SUndry Number: ðJ Ú2 ~ 025 Conditions of approval: Notify Commission so that a representative may witness Plug Integrity 0 Other: BOP Test 0 Mechanical Integrity Test 0 Location Clearance 0 RBDMS 8Ft FEE 0 2 ZDU6 to ~N1~ B-rÍ~ ~{ v.dlt ~kii~. Subsequent Form Required: l () - {." 7 ~ Approvod by c1ß¡¡J ~ 4- ORrGINAL COMMISSIONER APPROVED BY THE COMMISSION Date: ¡ -I-() ~ Form 10-403 Revised 07/2005 Submit in Duplicate . . Alaska Business Unit Marathon Oil Company P.O. Box 1949 Kenai, AK 99611-1949 Telephone 907/283-1311 Fax 907/283-6175 January 27, 2006 _ "~:"t R i::JVED REC~IV~lQ AI" . " " ~{A N ·3 1 ,?'nne'Olìl' Qt,i,\U \.Ii.! \.J. \...1-.:. ....(.JuvCjJ . Alaska Oil & GJ!r"tBnk~Y!omm;ssìon Anchorage Winton Aubert AOGCC 333 West 7th Ave Suite 100 Anchorage, AK 99501 Dear Mr. Aubert: Attached and submitted for your approval is the Form 10-403 to add new Tyonek perforations in the Susan Dionne #2 well located in Marathon's Ninilchik Unit. Also submitted with this form are a detailed completion procedure, well bore diagram showing the well's current status, and final directional survey. The proposed work entails cement squeezing the perforated intervals at 9729-9747' and 7766-7826' which are water productive. The cement work is intended to repair poor cement bond behind the 4-1/2" production liner and isolate the water productive coals adjacent to the perforated intervals. After the cement is drilled out, these two intervals will be reperforated. If the intervals continue to produce excessive amounts of water, they will each be isolated with a straddle packer assembly. An additional new Tyonek interval will be perforated from 7292-7316' MD. The well will then be put to sales. If you would like any other information, please contact me at 283-1311 or kdwalsh@marathonoil.com. Sincerely, 1~~.vJ~ Ken D. Walsh Senior Production Engineer Enclosures . . MARATHON OIL COMPANY ALASKA REGION Ninilchik Unit Susan Dionne #2 2005 Tyonek Recompletion Procedure WBS # DD.03.09646.CAP.CMP.02 ALL DATA RELATIVE TO THE TESTING OF THIS WELL IS CONFIDENTIAL. Notes: · This procedure covers work to cement squeeze and reperforate the water productive Tyonek / intervals, 9727-9747' and 7766-7826' MD, and to add new Tyonek perforations. · The first perf gun run for each interval listed below should be no longer than 18' to ensure that a straddle packer assembly can be run to isolate unexpected water flow. Have 4-1/2" straddle packer equipment readily available to install, if necessary. · Ensure that two 4-1/2" composite bridge plugs and setting tools are available to isolate below the perforation intervals to be cement squeezed. Have a 4-1/2" cement retainer available to be placed over the lowest interval to be cemented. · All flow tests are to be made through the production facilities. If excessive water production is encountered, MIRU the MOC flow back equipment including chicksan, open-top tank, and choke manifold to handle the water until a casing patch can be installed or the interval cement squeezed. · The first four Steps have been completed as of 12/16/2005. While performing the static pressure survey work outlined in Step #3, fill was encountered at 10015' MD. Efforts to remove this fill with four bailer runs were unsuccessful in removing all of the fill. Proposed New Tyonek Perforations 60% Drawdown 50% Drawdown SBHP (0.57 sp gr gas) (0.967 sp gr N2) MD Foota2e TVD .469 psi/ft FBHP FTP FBHP FTP 7292-7316', 24 ft 4530-4552 ' 2135 psi 854 psi 772 psi 1067 psi 912 psi 1. Remove BPV from casin~ han~er. 2. Run ~au~e rin~. MIRU Expro Wireline. Roundtrip a 2.0" 00 swedge through the straddle packer assembly at 9721-9752' MD to tag top of the retrievable BP at 10580' MD. 3. Obtain Real-time Static Temperature-Pressure Survey. MIRU Expro wireline. Hold PJSM. RIH with CCl and 1-11/16" real time Spartec pressure-temperature tool and GR with weight bars on wireline observing tool response for indication of producing fluid level. Page 2 of6 . . RIH to the retrievable BP at 10580' MD. Correlate depth and POOH logging to about 100' above fluid level. POOH taking 5 min benches every 2000'. RDMO Expro Wireline. 4. Flow test well throuQh facilities. Gradually reduce FTP to line pressure over about 8 hours. 5. MIRU flowback eauipment including three tanks (one 500 bbl Rain-for-Rent and two - 300 bbl flat tanks), MOC flowback iron and gas buster, and other miscellaneous equipment as determined necessary. Mix and fill one 500 bbl tank with 6% KCL water. Heat water as necessary. ASRC to lay liner and berm under and around the tanks. 6. Partially load hole and run CBL. Load hole with 6% KCL water to place top of fluid at 5500' MD. MIRU Expro to run 1-11/16" 00 SCMT including GR/CCL on wireline. RIH with CBL to 9800' MD. Correlate depth with Expro CBL run 9/20/04. Log CBL uphole from 9800'-5600' MD. POOH with CBL. RDMO Expro Wireline. 7. Pull straddle packer assembly @ 9721-9752' with slickline. MIRU Pollard Wireline to pull the Weatherford straddle packer assembly at 9721 '-9752' MD. MU wireline valve and pump-in tee to top of swab valve. MU sufficient lubricator to cover slickline pulling BHA, top packer, and seal assembly. MU weight bar, oil jars, Spang jars, and GS pulling tool baited in Eclipse retrieval adapter. Take lubricator to wellhead and pressure test 500 psi over well head pressure. RIH to 9721' MD. Engage retrieval adapter in top of packer and confirm with overpull. Sit down on tool string to load oil jars. Pick up on tool string and allow oil jars to stroke. See packer release and allow 15 to 20 minutes for packing elements to relax. Repeat jarring if packer does not release. Pull packer out of well at standard running speeds. Manually release GS pulling tool from retrieval adapter. LD packer and seal assembly. RIH with slickline BHA to release and pull bottom packer using same technique. Make arrangements with Weatherford to redress straddle packer assembly promptly. Note: If the assembly cannot be removed with slickline tools, a coiled tubing unit will be used to pull the assembly. 8. RIH with a 3.75" OD QauQe rinQ to taa BP at 10,580' MD. POOH and RDMO Pollard Wireline. 9. Set composite BP below previously straddled interval. MIRU Expro Wireline. RIH with 4-1/2" Baker composite BP (3.60" max 00, 10K psi down, 7.5K psi up) and CCL on wireline. Correlate depth with Expro CBL. Set top of BP at 9790' CBL MD. After releasing setting tool, RIH and tag top of BP to confirm set depth. I 10. Set cement retainer above perfs at 9727-9747', RIH with 4-1/2" Baker cement retainer and CCL on I wireline. Correlate depth and set top of cement retainer at 9700' (27' above top perf). RDMO Expro. 11. Attempt to initiate flow from perf interval, 7766-7826' MD by opening the well to the flowback tank. 12. MIRU BJ CoilTech coil tubinQ unit with 1-3/4" 00 coil tubing and ASRC crane. MIRU BJ nitrogen unit and cement pump. MIRU BJ filter pod to filter KCL water from KCL return water tank to suction tank. NO connection from top of swab valve. Install BJ flow cross to top of 4-1/16", 5K swab valve. RU MOC flowback iron to BJ flow cross. Rig up injector head and lubricator with cement retainer stinger on end of coil tubing and make proper pull test. Make up CT injector head and lubricator to BOP's. Pressure test CT BOP pipe and blind rams to 250 low/4000 high psi. Pressure test flowback iron to 250 low/4000 high / psi. 13. RIH with cement retainer stinQer on CT. Load hole with 6% KCL water while RIH. Break circulation above retainer recording circulating rate and pressure. Sting into retainer. Establish and record injection rate and pressure through perfs. Do not exceed max surface pressure as indicated (refer to note below in this Step). Based upon rate and pressure information, determine if any acid or mud flush treatment is required prior to commencing cement operations. SD #2 Tyonek Recompletion Procedure KDW - 1/27/2006 3:42:19 PM Page 3 of6 . . Note: Using Paxton No.1 frac data from comparable TVD, max surface pressure with 8.64 ppg 6% KCl = 2035 psig using frac gradient of 0.75 psilft at squeeze perf TVD of 6768'. 14. Batch mix 100 sacks (20.7 bbls) of cement per recipe below. Perform BJ standard QAlQC tests. Batch mix Biozan polvmer mud for cement contamination. Tentative cement blend is detailed below. Note that slight changes to additive concentrations may result due to lab tests results. Class G 0.7% Fl-63 0.3% CD-32 0.9% R-3 0.3% EC-1 0.5% SMS 2 ghs FP-6l Density 15.8 ppg Yield 1.164 cflsx Fluid loss 36cc/30 min Free water: 0 Pump time 7:37 hr:min 15. Sting out of retainer and PUH 10'. Pump 5 bbls 6% KCl water to verify stinger is disengaged from cement retainer and circulation is possible. 16. Pump cement slurry via CT after total cement volume has been mixed. When cement is within 1000' of stinger (+1- 2bbls), sting back into retainer, close annulus. and squeeze cement volume into peñs. Do not exceed a .75 psilft fracture gradient with surface pump pressure. When displacement fluid (5 bbls fresh water, 20 bbls Biozan polymer mud, and then 6% KCl water) is within 500' of retainer (+1- 1 bbl), sting out of retainer allowing cement to fall on top of retainer while PUH 30'. Spot Biozan mud while PUH with CT to 7850'. Circulate at least one bottoms up with 6% KCl water until returns are clean. POOH and stand back CT. 17. Set composite BP below 7766-7826' peñ interval. MIRU Expro Wireline. PU and roundtrip a 3.75" 00 gauge ring to 8000' MD. RIH with 4-1/2" Baker composite BP (3.60" max 00, 10K psi down, 7.5K psi up) and CCl on wireline. Correlate depth with Expro CBL. Set top of BP at 7840' CBl MD. After releasing setting tool, RIH and tag top of BP to confirm set depth. 18. RIH with jet nozzle on coil tubing to 7830' to jet well in with nitrogen. Unload well and POOH with coil tubing. Flow test well to sales observing drawdown limits. If this interval is too water productive, proceed to next Step. Otherwise, proceed to Step # 28 to begin milling cement and the cement retainer to the composite BP at 9790' MD. 19. Load hole with 6% KCL and pump into 7766-7826' peñs interval. Establish and record injection rate and pressure through perfs. Do not exceed max surface pressure of 1500 psi for this interval. Based upon rate and pressure information, determine if any acid or mud flush treatment is required prior to commencing cement operations. / 20. RIH with CT. Rig up CTU and pressure test lines and equipment to 3000 psig. RIH with large 00 (ensure prior to running that nozzle cannot enter bore of BP), big bore nozzle on CT and tag top of BP at 7840' CBL. Flag CT for tag depth. 21. Pump into 7766-7826' peñs interval. PU and place nozzle at bottom of perforations at 7822' CBL. Shut in well and pump into perforations documenting injection pressure and rate through CT. Based upon injection rate and pressure, treat perforations as necessary. SD #2 Tyonek Recompletion Procedure KDW - 1/27/2006 3:42:19 PM Page 4 of 6 . . 22. .Batch mix 50 sacks (10.4 bbls) of cement per recipe below. Perform BJ standard QAlQC tests. Blend Biozan polymer mud for cement contamination. Note that slight changes to additive concentrations may result due to lab tests results. Class G 0.7% FL-63 0.3% CD-32 0.9% R-3 0.3% EC-1 0.5% SMS 2 ghs FP-6L Density 15.8 ppg Yield 1 .164 cf/sx Fluid loss 36cc/30 min Free water: 0 Pump time 7:37 hr: min 23. Spot cement across 7766-7826' peñs interval and sQueeze. When total cement volume has been /' mixed, open well. RIH with CT to BP at 7840' CBL and pump 5 bbl. water spacer and cement slurry via CT taking returns at surface into return tank. When cement exits nozzle, PU with CT and lay a balanced cement plug while PUH with CT. Displace cement from CT with 5 bbls fresh water followed by Biozan polymer mud. Once plug is in place, pick up CT to -300 feet above TOC and CBU. 24. Shut in well and apply sQueeze pressure. NOTE: Do not exceed 0.75 psi/ft fracture gradient. Monitor and document annulus pressure and rate during squeeze operations. Once the target squeeze pressure is obtained hold for 45 to 60 minutes to facilitate nodal development. Bleed pressure from annulus. 25. RIH with CT pumping Biozan polymer mud down CT. Ensure nozzle does not reach TOC until Biozan has exited nozzle. Continue RIH with CT spotting Biozan cement contaminant to BP at 7840' CBL. Stop pumping Biozan mud and CBU with 6% KCL until returns are clean. NOTE: An accurate measurement of the tank volumes at surface is important to confirm fluid is not being lost through the squeeze perforations. 26. Shut in well and secure location for the night and WOC a minimum of 24 hrs or as determined from the cement lab report. 27. Pressure test casing to 1500 psig. If casing does not test, discuss with Anchorage merits of additional / remedial cement work in squeeze perforations at 7766-7826' MD. 28. Clean out to BP at 7840' CBL with motorlmill on CT. RIH with a Baker Oil Tool BHA consisting of 2- 7/8" 00 motor and a 3.80" 00 concave mill sized for 4-1/2" 12.6 ppf casing. RIH and drill or circulate cement to BP at 7840' CBL with 6% KCL water and FRW-14 friction reducer at 2 BPM. CBU. Pressure test casing to 1500 psig. If squeeze perforations do not hold pressure, discuss merits of performing another block squeeze through these perforations with Houston Subsurface Team and management, and perform as above. 29. Mill BP set at 7840', cement retainer, and any cement down to BP set at 9790' with CT. Circulate I 6% KCL water with FRW-14 at 2 BPM while milling BP. Once BP is milled, push or mill BP down to top of cement retainer. Drill remaining BP and cement retainer. CBU. Push or mill cement retainer down to top of lower composite BP top at 9790' CBL. CBU. 30. Pressure test casing to 1500 psia. If casing does not test, discuss with Anchorage merits of additional ( remedial cement work in squeezed perforations at 9727-9747' MD. SD #2 Tyonek Recompletion Procedure KDW - 1/2712006 3:42:19 PM Page 5 of6 . . 31. Mill BP set at 9790' CBL with CT. Circulate 6% KCl water with FRW-14 at 2 BPM while milling BP. Once BP is milled, push or mill BP down to top of Weatherford retrievable BP set at 10,580'. CBU. 32. Jet well clean with fluid and trap nitroaen pressure. After BP is on bottom, circulate well clean while pumping fluid at 1.25 BPM fluid and nitrogen at 500 scfm. Drop ball to open circulating port. POOH with CT and BHA pumping only nitrogen at 350 scfm. Trap at least 1300 psi nitrogen pressure at surface to perforate with a 50% underbalance. Consider a second cleanout run with a BJ Tornado jetting tool if cleanout run is unsatisfactory. RDMO BJ Coiltech coiled tubing and nitrogen units. 33. Reperf interval @ 9727-9743' and test. Shut off water if necessary with straddle packer. MIRU ./ Expro wireline service with full lubricator and pressure control equipment. Hold safety and environmental awareness meeting. Run a 3.70" swage to 9850'. If necessary, bleed nitrogen pressure down to 1270 psig while running in the hole with the first perforating gun. PU and RIH with CCl and 3.375" HSD guns loaded 16' with 6 SPF, 60 degree-phased, SDP-3125-311 NT3 charges, and PX-1 firing head. Correlate depth to Reeves Array Induction log run 20-Aug-2004 and Expro CBl run 20-Sept-2004. Perforate 9727- 9743' MD with 1270 psi SIWHP. While PUH with perf guns, leave well shut in for 10 minutes to monitor pressure build. Continue POOH with guns and begin opening well up to sales observing drawdown limits stated above. NOTE: Monitor flow rate and FTP to determine if excessive water flow is coming from this new interval. If water flow is excessive, RU Weatherford to set a straddle packer assembly across the interval. 34. Reperf interval @ 7766-7800' and test. Shut off water if necessary with straddle packer. MIRU Expro wireline service with full lubricator and pressure control equipment. Hold safety and environmental awareness meeting. Bleed nitrogen pressure down to 990 psig or gas pressure down to 840 psig while running in the hole with the first perforating gun. RIH with CCl and 3.375" HSD guns loaded 16' with 6 SPF, 60 degree-phased, SDP-3125-311 NT3 charges, and PX-1 firing head. Correlate depth to Reeves Array Induction log run 20-Aug-2004 and Expro CBl run 20-Sept-2004. Perforate 7784-7800' MD with the appropriate SIWHP. While PUH with perf guns, leave well shut in for 10 minutes to monitor pressure build. RIH with 18' perforating gun and perforate 7766-7784' MD with the appropriate SIWHP. While PUH with perf guns, leave well shut in for 10 minutes to monitor pressure build. Continue POOH with guns and begin opening well up to sales observing drawdown limits stated above. / NOTE: Monitor flow rate and FTP to determine if excessive water flow is coming from this new interval. If water flow is excessive, RU Weatherford to set a straddle packer assembly across the interval. 35. Perforate New Tvonek: 7292-7316' MD. / MIRU Expro wireline service with full lubricator and pressure control equipment. Hold safety and environmental awareness meeting. Bleed nitrogen pressure down to 910 psig or gas pressure down to 770 psig while running in the hole with the first perforating gun. PU and RIH with CCl and 3.375" HSD guns (run 6' loaded first and then an 18' loaded gun) with 6 SPF, 60 degree-phased, SDP-3125- 311 NT3 charges, and PX-1 firing head. Correlate depth to Reeves Array Induction log run 20-Aug-2004 and Expro CBl run 20-Sept-2004. Perforate 7310-7316' MD with the appropriate SIWHP. While PUH with perf guns, leave well shut in for 10 minutes to monitor pressure build. RIH with an 18' perforating gun and perforate 7292-7310' MD with the appropriate SIWHP. While PUH with perf guns, leave well shut in for 10 minutes to monitor pressure build. Continue POOH with guns and begin opening well up to sales observing drawdown limits stated above. NOTE: Monitor flow rate and FTP to determine if excessive water flow is coming from this new interval. If water flow is excessive, consider cement squeezing this interval and reperforating. 15. RDMO and release equipment. Haul off fluid from tanks to the G&I Plant for disposal. RD flowback iron. Release tanks and all rental equipment to vendors. SD #2 Tyonek Recompletion Procedure KDW - 1/27/2006 3:42:19 PM Page 6 of6 . . 16. FLOW TEST WELL TO SALES. No more than a 60% drawdown with methane gas in well bore is permitted for the lowest open interval. Obtain stabilized flow within the 60% drawdown limit. The unloading rate up 4-112" casing in a vertical well is 4.1 MMCFGPO @ 800 psig FCP. The unloading rate for the 63.5 degree tangent section in this well is 4.95 MMCFO @ 800 psig FCP. Flow well to sales observing recommended drawdown rates. CONTACTS Ken Walsh: 907 -283-1311 (w) 907-394-3060 (c) David Brimberry: 713-296-2265 (w) 713- 408-0703 (c) Ben Schoffmann: 907-565-3035 (w) 907-268-0122 (c) Clyde Scott: 713-296-2336 (w) Ninilchik Operators: 907-260-7660 or 907-567-3248 (Susan Dionne Pad) KGF Operators: 907-283-1305 Perforation Infonnation: 3.375" 00 HSO guns loaded with 6 SPF, 60 degree-phased, SOP-3125-311 NT3 charges. API target performance is 0.36" entrance hole and 40.25" penetration. Maximum gun swell in air is 3.625" 00. SD #2 Tyonek Recompletion Procedure KDW - 1/27/2006 3:42:19 PM X:213.017.13 Zone 4 Y:2.236.705.03 Zone 4 GL:135' KB: 156' (21' AGL) SPUD: 07129104 TD: 0811912004 Riq Released: 00:00 hr. 812612004 4-112" 12.6 ppf L"80 AB· Mod Butt tbg 7" X 4-1/2" annulus filled with 9.7 ppg mud. API # 50.133·20541·00 Permit # 204-107 WBS # DD.03.09646.CAP.CMP Property:ADL 9S924211 & ADL 389180 4-1/2" Short Joint Locations: 6904' - 6925' MD 8536' - 8557' MD Weatherford Retrievable Bridc¡e Pluqs: 10580' MD (P-Test to 2000 psi surface w/KCL wat 10620' MD (would not test) Both plugs rated to 7500 psi above and 10000 psi from below. 10K CISP at 10170' MD ¡PBTO (Top oHloat collar) 10,910' MQ/7890' TVD 20" 133 ppf K-55 driven to 119' 114" 00 0.049" wall Chemical inj¡¡ctionatring tied into Chemical Injectt()n Nipple top at 2400' w1double check valve and rupture discs 7766'·7826' MD (60') 3-31$" 6 apf TVO 9727'·9747' MD (20') 3-318" 6 apf 10.009'-10.031' MO (22') 3·318" 6 spf 7006'-7026' TVO 10.064'-10.140' MO (76') 3-318" 6 spf 7056'-7125' TVD 10.161'-10.181' MO (20') 3"318" 6spf 7145'-7163' TVD 10,242'-10,330' MD (88') 3-318" 6 spf 7219"7299' TVD ¡Tagged fill at 10015' M DwithExpro P-Ttool on 11/15/2005. Tagged at 10026' MD and bailed dowot010028' MD with slickline on 125/2005. (36') 3-318" 6 apf Fraced with 37000 Ibs of 20140 sand MO (58') 3-318" 6 spf 7728'-7782' TVD BHL: 330' FSL, 1210' FEL, Sec. 31, TiN, R13W, SM . M' ~MARA THON Oil Company,SD #2 Susan Dionne, ,MARATHON Ninilchik Field,Kenai Peninsula, Alaska . SURVEY LISTING Page 1 Well bore: SD #2 Wellpath: MWD <0-11094> Date Printed: 23-Aug-2004 -tA: INTEQ Wellbore Name SD#2 I Created 5-AuQ-2004 Last Revised Wen Name SD#2 ¡ Government ID Last Revised 19-May-2004 Slot Name SD#2 I Grid Northing 2236705.0300 I Grid EastinQ 213017.1300 I Latitude N60 6 47.4215 I Longitude W151 34 23.4462 1.33N least 1427.16W ,Installation Name Susan Dionne I Easting J Northing I Coord System Name 214436.499 2236359.9871 AK-4 on NORTH AMERICAN DATUM 1927 Alignment True Name Ninilchik Field J NorthinQ 226657.848 1 Coord System Name 2252005.118 AK-4 on NORTH AMERICAN DATUM 1927 All data is in Feet unless otherwise stated Coordinates are from Slot MD's are from Rig and TVD's are from Rig (Datum #2 156.0ft above Mean Sea Level) Vertical Section is from O.OON O.OOE on azimuth 324.46 degrees Bottom hole distance is 6631.10 Feet on azimuth 323.91 degrees from Wellhead Calculation method uses Minimum Curvature method Prepared by Baker Hughes Incorporated M MARATHON . MARA THON Oil Company,SD #2 Susan Dionne, Ninilchik Field,Kenai Peninsula, Alaska . SURVEY LISTING Page 2 Wellbore: SD #2 Wellpath: MWD <0-11094> Date Printed: 23-Aug-2004 ... .... INTEQ WeIIPath(GridlRøôt-t MD[ft] Inc{deg] Azi[deg] TVD[ft] North[ft] East[ft] Dogleg Vertical Easting Northing fdea/100ftl Sectionfftl 0.00 0.00 0.00 0.00 O.OON O.OOE 0.00 0.00 213017.1 ~ 2236705.0: 132°1 0.40 23.90 132.00 0.42N 0.19E 0.30 0.23 213017.3~ 2236705.41 192.0 0.601 10.80 192.00 0.92N 0.33E 0.38 0.56 213017.4E 2236705.9- 252.0 3.30 346.50 251.96 2.91N 0.01W 4.61 2.38 213017.H 2236707.9- ~ 312.0 6.20 345.9q 311.74 7.73N 1.21W 4.831 6.99 213016.1' 2236712.7! 373.0 7.70 346.20 372.29 14.90N 2.98W 2.46 13.86 213014.5C 2236719.9! 433.00 8.70 347.40 431.68 23.23N 4.93W 1.69 21.77 213012.n 2236728.3i 493.00 12.00 345.60 490.70 33.70N 7.47W 5.53 31.77 213010.4E 2236738.9( 553.00 14.60 340.30 549.08 46.87N 11.58W 4.78 44.86 213006.6i 2236752. H 614.00 15.80 337.30 607.95 61.77N 17.37W 2.35 60.36 213001.2~ 2236767. H 674.00 18.00 336.00 665.36 77.77N 24.30W 3.72 77.41 212994.6~ 2236783.3E 733.00 21.40 335.10 720.89 95.87N 32.54W 5.79 96.92 212986.8E 2236801.6- 794.00 24.60 332.60 777.04 117.24N 43.07~ 5.48 120.44 212976.8E 2236823.2E 860.00 28.10 330.70 836.17 143.00N 57.00 5.45 149.50 212963.5t 2236849.31 922.00 31.10 330.10 890.08 169.62N 72.13 4.86 179.95 212949.0t 2236876.3~ 985.00 33.20 329.70 943.41 198.62N 88.95W 3.35 213.33 212932.9~ 2236905.7' 1048.0C 33.70 329.60 995.98 228.59N 106.50V\ 0.80 247.91 212916.1' 2236936.0! 1111.0C 34.80 329.40 1048.05 259.14N 124.49V\ 1.76 283.23 212898.8- 2236967.0E 1172.0C 36.80 329.20 1097.52 289.82N 142.71V\ 3.28 318.78 212881.3E 2236998. H 1235.0C 38.70 329.50 1147.3~ 323.00N 162.37V\ 3.03 357.21 212862.5C 2237031.8( 1297.0C 40.70 328.90 1195.0~ 357.01 N 182.65V\ 3.28 396.68 212843.0~ 2237066.2! 1359.0C 42.30 328.90 1241.47 392.19N 203.87V\ 2.58 437.63 212822.6E 2237101.9E 1421.0C 45.30 329.50 1286.21 429.05N 225.84~ 4.88 480.39 212801.5i 2237139.3: 1484.0C 47.801 330.00 1329.5~ 468.55N 248.87 4.01 525.93 212779.4~ 2237179.3i 1547.0C 49.70 330.40 1371.07 509.66N 272.41V\ 3.05 573.06 212756.9~ 2237221.0~ 1609.0C 52.20 330.40 1410.1~ 551.52N 296.19V\ 4.03 620.94 212734.1E 2237263.4- 1673.00 54.90 330.60 1448.15 596.32N 321.53V\ 4.23 672.13 212709.8E 2237308.8: 1735.0C 57.40 331.10 1482.6~ 641.29N 346.61V\ 4.09 723.30 212685.8~ 2237354.31 1797.0C 60.10 330.70 1514.8~ 687.60N 372.39V\ 4.39 775.97 212661.2. 2237401.2! 1859.0C 62.90 331.30 1544.43 735.25N 398.80V\ 4.60 830.09 212635.9t 2237449.5E 1955.0C 62.20 331.70 1588.6E 810.12N 439.45V\ 0.82 914.64 212597.0~ 2237525.3i 2078.0C 62.80 330.70 1645.47 905.72N 492.01V\ 0.87 1022.99 212546.8. 2237622.2( 2202.0C 63.30 330.20 1701.67 1001.871\ 546.52V\ 0.54 1132.92 212494.6' 2237719.6~ 2326.00 63.20 330.80 1757.49 1098.251\, 601.05V\ 0.44 1243.03 212442.4C 2237817.2E 2453.00 64.10 330.50 1813.86 1197.44~ 656.83V\ 0.74 1356.17 212389.0C 2237917.7E 2578.0C 62.80 330.40 1869.73 1294.71 711.98V\ 1.04 1467.3E 212336.H 2238016.3' 2703.0C 64.60 330.60 1925.11 1392.241\, 767.15V\ 1.45 1578.81 212283.3- 2238115.1: 2827.0C 63.70 329.80 1979.17 1489.081\ 822.61V\ 0.931 1689.8~ 212230.2' 2238213.2E 2952.0C 64.80 329.80 2033.4E 1586.381\ 879.24V\ 0.88 1801.9~ 212175.9' 2238311.81 3077.0C 64.30 329.30 2087.2C 1683.681\ 936.44 V\ 0.54 1914.36 212121.0- 2238410.5~ 3200.00 64.50 329.50 2140.3~ 1779.161\ 992.91V\ 0.22 2024.8f 212066.8i 2238507.3' 3325.0C 67.10 329.40 2191.5E 1877.341\ 1050.85V\ 2.08 2138.45 212011.2i 2238606.8- 3387.0C 66.80 329.10 2215.85 1926.371\, 1080.02V\ 0.66 2195.30 211983.2E 2238656.5t 3511.0C 66.30 330.1 0 2265.2(; 2024.491\, 1137.59V\ 0.84 2308.6C 211928.0E 2238756.0· 3636.01 65.90 329.20 2315.8~ 2123.111\, 1195.33V\ 0.73 2422.41 211872.6~ 2238855.9i 3760.0 65.20 329.50 2367.17 2220.221\, 1252.88V\ 0.61 2534.8f 211817.4i 2238954.4~ 3885.0 64.20 329.20 2420.59 2317.441\, 1310.49V\ 0.83 2647.4f 211762.H 2239052.9! 4010.0C 63.70 33°1 2475.4f 2414.441\, 1367.06V\ 0.89 2759.3C 211707.9- 2239151.3' 4134.0C 62.90 330.4 2531.20 2510.721\, 1421.86V\ 0.65 2869.49 211655.4t 2239248.8£ 4258.0C 62.20 331.1 2588.36 2606.721\, 1475.63V\ 0.75 2978.87 211603.9E 2239346.1 ~ 4384.0C 61.40 331.2 2647.9C 2703.981\, 1529.21 V\ 0.64 3089.16 211552.n 2239444.6: All data is in Feet unless otherwise stated Coordinates are from Slot MD's are from Rig and TVD's are from Rig (Datum #2 156.0ft above Mean Sea Level) Vertical Section is from O.OON O.OOE on azimuth 324.46 degrees Bottom hole distance is 6631.10 Feet on azimuth 323.91 degrees from Wellhead Calculation method uses Minimum Curvature method Prepared by Baker Hughes Incorporated M MARATHON ~ , . MARATHON Oil Company,SD #2 Susan Dionne, Ninilchik Field,Kenai Peninsula, Alaska . SURVEY LISTING Page 3 Wellbore: SD #2 Wellpath: MWD <0-11094> Date Printed: 23-Aug-2004 -II: INTEQ WêUøath(Gn.('I)R..ort·.·. MD[ft] Inc[deg] Azi[deg] TVD[ft] North[ft] East[ft] Dogleg Vertical Easting Northing fdeQ/100ftJ SectionfftJ 4508.0(, 61.30 331.80 2707.35 2799.611\ 1581.14V\ 0.43 3197.15 211503.1 ( 2239541.4; 4633.0q 63.80 331.20 2764.97 2897.091\ 1634.07V\ 2.04 3307.24 211452.5C 2239640.1; 4757.0C 63.60 331.90 2819.91 2994.821\ 1687.03V\ 0.53 3417.55 211401.8~ 2239739.1" 4883.0C 63.80 331.80 2875.74 3094.42/\ 1740.32V\ 0.17 3529.57 211350.9E 2239839.9~ 5005.0C 63.20 332.30 2930.17 3190.87/\ 1791.49V\ 0.61 3637.7£ 211302.1. 2239937.6· 5128.0C 63.10 332.60 2985. n 3288.161\ 1842.25V\ 0.23 3746.47 211253.6~ 2240036.0! 5252.00 62.30 332.4~ 3042.6C 3385.901\ 1893.13V\ 0.66 3855.57 211205.1E 2240135.0· 5313.0C 61.40 331.8 3071.31: 3433.431\ 1918.29V\ 1.71 3908.81: 211181.1:: 2240183.1, 5374.0C 60.90 331.2 3100.81 3480.39/\ 1943.79V\ 1.19 3961.91 211156.7E 2240230.6; 5437.0C 60.40 331.60 3131.6~ 3528.601\ 1970.07V\ 0.97 4016.42 211131.6:: 2240279.5( 5499.00 60.00 331.00 3162.5C 3575.79/\ 1995.91 V\ 1.06 4069.84 211106.9. 2240327.2! 5561.0C 58.50 329.30 3194.2C 3622.00/\ 2022.42V\ 3.38 4122.85 211081.5. 2240374.1~ 5623.0C 57.30 329.1~ 3227.15 3667.12/\ 2049.31~ 1.95 4175.19 211055.7· 2240419.8£ 5685.0~ 55.20 328.6 3261.5£ 3711.231\ 2075.98V\ 3.45 4226.5£ 211030.1 C 2240464.6( 5747.0 53.60 328.5 3297.61: 3754.241\ 2102.28V\ 2.58 4276.87 211004.8:: 2240508.2~ 5810.0C 51.70 327.70 3335.9C 3796.761\ 2128.74V\ 3.18 4326.85 21 0979.3~ 2240551.31 5872.0C 50.40 327.40 3374.88 3837.45/\ 2154.61 V\ 2.13 4374.9£ 210954.5C 2240592.61 5912.0C 50.00 326.60 3400.48 3863.221\ 2171.34V\ 1.83 4405.69 210938.3E 2240618.8",: 5966.0C 48.70 326.50 3435.66 3897.401\ 2193.93V\ 2.41 4446.64 210916.6. 2240653.5~ 6029.0C 47.00 326.60 3477.94 3936.371\ 2219.67V\ 2.70 4493.31 210891.8' 2240693.0! 6091.00 45.70 326.90 3520.73 3973.891\ 2244.2 7'^¡ 2.13 4538.14 210868.1' 2240731.11 6154.0C 42.70 325.10 3565.8£ 4010.301\ 2268.81V\ 5.16 4582.03 210844.4t 2240768.1 ; 6216.0C 41.90 323.30 3611.75 4044.151\ 2293.21 V\ 2.34 4623.75 210820.8E 2240802.5~ 6278.0C 40.70 321.10 3658.32 4076.48N 2318.28V\ 3.04 4664.64 210796.5E 2240835.5: 6340.0C 39.60 320.00 3705 'j 4107.35/\ 2343.68V\ 2.11 4704.52 210771.9' 2240866.9; 6402.0C 37.40 318.50 3754.2 4136.591\ 2368.86V\ 3.85 4742.95 210747.4:: 2240896.8· 6464.0q 36.101 317.50 3803.9 4164.161\ 2393.68V\ 2.31 4779.81 210723.2E 2240924.9£ 6526.0C 34.90 316.6~ 3854.3 4190.521\ 2418.20V\' 2.11 4815.511 21 0699.3~ 2240951.8! 6589.0C 33.70 314.3 3906.4 4215.821\ 2443.10V\ 2.80 4850.57 210675.1 C 2240977.7t 6651.0(, 32.20 312.30 3958.47 4238.951\ 2467.63V\ 2.99 4883.65 210651.1:: 2241001.4! 6713.0(, 30.20 310.50 4011.5C 4260.201\ 2491.71V\ 3.56 4914.94 210627.5E 2241023.3( 6775.00 28.80 309.30 4065.46 4279.791\ 2515.12V\ 2.45 4944.4£ 210604.6. 2241043.4" 6837.0C 27.101 309.30 4120.22 4298.191\ 2537.61V\ 2.74 4972.54 210582.5E 2241062.3~ 6899.0C 27.20 309.80 4175.3£ 4316.211\ 2559.42V\ 0.40 4999.87 210561.2C 2241080.9' 6961.0C 25.30 308.60 4231.0C 4333.551\ 2580.67V\ 3.18 5026.33 210540.3E 2241098.7" 7024.0C 25.60 307.40 4287.8E 4350.211\ 2602.00V\ 0.95 5052.29 210519.4t 2241115.9· 7086.0C 26.10 306.80 4343.68 4366.521\ 2623.56V\ 0.91 5078.0£ 210498.2E 2241132.7: 7147.0C 26.20 307.2Q 4398.4" 4382.701\ 2645.03V\ 0.33 5103.74 210477.2C 2241149.4· 7210.0C 24.30 310.60 4455.42 4399.541\ 2665.95V\ 3.79 5129.61 210456.6E 2241166.71 7272.0C 25.10 309.30 4511.74 4416.171\ 2685.82V\ 1.56 5154.6E 210437.2. 2241183.81 7335.0(, 25.20 309.30 4568.77 4433.13/\ 2706.54V\ 0.16 5180.53 210416.9' 2241201.3C 7397.0C 23.30 310.30 4625.3C 4449.43/\ 2726.10V\ 3.14 5205.16 210397.7" 2241218.01 7459.0C 23.70 309.30 4682.16 4465.25/\ 2745.10V\ 0.91 5229.07 210379.1:: 2241234.3~ 7522.00 24.10 308.80 4739.75 4481.331\ 2764.92,^ 0.71 5253.6€ 21 0359.6~ 2241250.8; 7585.0C 24.40 307.70 4797.1£ 4497.34t\ 2785.24W 0.86 5278.52 210339.7E 2241267.3£ 7648.0C 24.60 307.10 4854.52 4513.211\ 2805.99V\ 0.51 5303.5C 21 0319.3~ 2241283.7~ 7709.00 25.00 306.30 4909.90 4528.501\ 2826.51V\ 0.86 5327.87 210299.2" 2241299.5( 7772.0C 25.601 305.30 4966.85 4544.251\ 2848.35V\ 1.17 5353.37 210277.n 2241315.7E 7834.0C 25.80 305.80 5022.72 4559.88/\ 2870.22V\ 0.481 5378.81 210256.2~ 2241331.9' 7896.0C 25.70 304.60 5078.56 4575.411\ 2892.23V\ 0.86 5404.23 210234.6E 2241347.91 7958.od 25.80 303.80 5134.41 4590.551\ 2914.51V\ 0.58 5429.5C 210212.n 2241363.6~ All data is in Feet unless otherwise stated Coordinates are from Slot MO's are from Rig and TVD's are from Rig (Datum #2 156.0ft above Mean Sea Level) Vertical Section is from O.OON O.OOE on azimuth 324.46 degrees Bottom hole distance is 6631.10 Feet on azimuth 323.91 degrees from Wellhead Calculation method uses Minimum Curvature method Prepared by Baker Hughes Incorporated M MARATHON ~ ~ . MARA THON Oil Company,SD #2 Susan Dionne, Ninilchik Field,Kenai Peninsula, Alaska . SURVEY LISTING Page 4 Well bore: SD #2 Wellpath: MWD <0-11094> Date Printed: 23-Aug-2004 4: INTEQ WøIIPåtl1..·(GridlRêÞôrt MD[ft] Inc[deg] Azi[deg] TVD[ft] North[ft] East[ft] Dogleg Vertical Easting Northing rdeq/100ftl Sectionrftl 8022.0C 25.40 303.20 5192.12 4605.811\, 2937.57,^ 0.74 5455.32 210190.0€ 2241379.4~ 8084.0C 25.80 302.80 5248.04 4620.401\, 2960.03,^ 0.70 5480.26 210167.9t 2241394.5! 8147.0C 25.80 302.70 5304.76 4635.231\, 2983.10,^ 0.07 5505.72 210145.2" 2241409.9~ 8211.0C 23.20 306.10 5362.9f; 4650.191\ 3005.01,^ 4.62 5530.64 210123.7C 2241425.4C 8272.0C 23.201 305.80 5419.06 4664.301\ 3024.46,^ 0.19 5553.42 210104.5E 2241439.9€ 8335.0C 22.70 306.70 5477.0E 4678.821\ 3044.27,^ 0.97 5576.76 210085.1. 2241454.9! 8396.0C 22.00 309.20 5533.42 4693.071\ 3062.56,^ 1.94 5598.99 210067.1E 2241469.6" 8459.0C 21.60 310.90 5591.99 4708.131\, 3080.4 7,^ 1.19 5621.65 210049.6~ 2241485.11 8521.00 22.00 310.70 5649.56 4723.171\, 3097.90,^ 0.66 5644.02 210032.5€ 2241500.5, 8583.0C 22.50 309.90 5706.94 4738.351\, 3115.81,^ 0.94 5666.7E 210015.0~ 2241516.1, 8645.0C 22.30 308.60 5764.26 4753.301\, 3134.10,^ 0.86 5689.58 209997.0f 2241531.5! 8707.0C 22.40 307.80 5821.6C 4767.881\, 3152.63,^ 0.52 5712.21 209978.9. 2241546.5, 8769.0C 22.90 307.50 5878.82 4782.471\, 3171.53,^ 0.83 5735.07 209960.3i 2241561.6( 8830.0C 23.301 306.10 5934.9~ 4796.801\ 3190.70,^ 1.11 5757.87 209941.5t 2241576.3f 8892.0C 23.50 305.30 5991.8~ 4811.171\ 3210.69,^ 0.61 5781.1~ 209921.9C 2241591.2~ 8955.0C 23.20 307.20 6049.67 4825.931\, 3230.83,^ 1.29 5804.9C 209902.1. 2241606.4~ 9017.0C 23.40 307.20 6106.62 4840.751\, 3250.36,^ 0.32 5828.32 209882.9E 2241621.7 9081.0C 23.30 306.80 6165.38 4856.021\, 3270.6211\ 0.29 5852.51 209863.0€ 2241637.4! 9143.00 23.70 305.90 6222.22 4870.671\, 3290.53,^ 0.87 5876.01 209843.5C 2241652.6' 9204.0C 24.00\ 306.40 6278.02 4885.221\, 3310.45,^ 0.59 5899.4~ 209823.9./ 2241667.6, 9265.0C 24.70 307.60 6333.6£; 4900.361\ 3330.53,^ 1.41 5923.42 209804.2~ 2241683.2" 9331.0C 24.80 306.50 6393.52 4917.01 I\, 3352.59,^ 0.71 5949.7E 209782.5i 2241700.4' 9393.00 25.20 305.50 6449. 7~ 4932.411\ 3373.78,^ 0.94 5974.63 209761.7t 2241716.3· 9455.0C 25.80 304.50 6505.69 4947.711\ 3395.65,^ 1.19 5999.8C 20974(}.2E 2241732.1: 9517.00 26.00 303.40 6561.46 4962.841\ 3418.1111\ 0.84 6025.11 209718.1E 2241747.7! 9578.00 26.70 303.80 6616.12 4977.821\, 3440.66,^ 1.18 6050.4 209695.9i 2241763.3( 9639.0C 25.80 307.50 6670.82 4993.531\, 3462.59,^ 3.06 6075.9 209674.4. 2241779.5, 9701.0q 25.10 310.30 6726.82 5010.251\, 3483.32,^ 2.24 6101.64 209654.0f 2241796.7, 9763.0C 24.80 311 .80 6783.02- 5027.421\, 3503.04,^ 1.13 6127.08 209634.7f 2241814.3, 9827.0C 24.701 311 .60 6841.15 5045.241\, 3523.05,^ 0.20 6153.21 209615.2' 2241832.6. 9889.0C 24.80 310.90 6897.4~ 5062.361\, 3542.56,^ 0.50[ 6178.4e 209596.1' 2241850.2" 9951.0C 25.00 310.20 6953.7C 5079.331\, 3562.40,^ 0.57 6203.82 209576.6E 2241867.6f 10013.0C 24.70 309.60 7009.96 5096.041\, 3582.39,^ 0.63 6229.04 209557.1C 2241884.8€ 10076.0~ 24.70 309.60 7067.19 5112.821\, 3602.67,^ 0.00 6254.48 209537.2. 2241902.1 ~ 10138.0C 24.10 311.90 7123.65 5129.531\, 3622.0711\ 1.81 6279.36 209518.2. 2241919.2! 10200.0C 23.90 311.90 7180.3C 5146.371\, 3640.84~ 0.32 6303.97 209499.8f 2241936.5, 10262.0C 23.90 310.70 7236.ge 5162.951\, 3659.71 0.78 6328.4~ 209481.3f 2241953.5! 10324.0C 24.00 311.20 7293.64 5179.451\, 3678.72 0.36 6352.9C 209462.7E 2241970.5" 10387.0C 23.901 310.50 7351.22 5196.171\, 3698.07,^ 0.48 6377.76 209443.8" 2241987.7~ 10449.0C 23.60 310.80 7407.97 5212.441\ 3717.01,^ 0.52 6402.01 209425.2E 2242004.4, 10511.0C 23.80 310.10 7464.74 5228.61 I\, 3735.97,^ 0.56 6426.1 e 209406.7' 2242021.0! 10574.0C 22.80 309.40 7522.6~ 5244.541\, 3755.13,^ 1.65 6450.2€ 209387.9" 2242037.4, 10636.0C 22.20 309.50 7579.8 5259.621\ 3773.45,^ 0.97 6473.2C 209369.9E 2242052.9" 10698.0C 21.70 308.80 7637.3€ 5274.251\, 3791.4211\ 0.91 6495.5a 209352.3f 2242068.0( 10760.0C 21.80 307.60 7694.97 5288.461\, 3809.48 0.74 6517.61 209334.6E 2242082.6, 10822.0C 21.70 306.50 7752.56 5302.301\, 3827.81 0.68 6539.53 209316.6t 2242096.9( 10884.0C 21.30 306.60 7810.24 5315.831\, 3846.07 0.65 6561.15 209298. 7~ 2242110.8, 10946.0C 21.00 305.70 7868.07 5329.031\ 3864.13 0.71 6582.3€ 209280.9E 2242124.4! 11007.0C 20.20 305.10 7925.17 5341.461\ 3881.62 1.36 6602.6E 209263.n 2242137.3" 11026.0C 20.00 305.20 7943.01 5345.221\ 3886.96 1.07 6608.84 209258.5" 2242141.2~ 11094.0C 20.00 305.20 8006.91 5358.631\ 3905.97 0.001 6630.7€ 209239.8€ 2242155.0f All data is in Feet unless otherwise stated Coordinates are from Slot MD's are from Rig and TVD's are from Rig ( Datum #2 156.0ft above Mean Sea Level) Vertical Section is from O.OON O.OOE on azimuth 324.46 degrees Bottom hole distance is 6631.10 Feet on azimuth 323.91 degrees from Wellhead Calculation method uses Minimum Curvature method Prepared by Baker Hughes Incorporated ~' M MARATHON ¡ . MARATHON Oil Company,SD #2 Susan Dionne, Ninilchik Field,Kenai Peninsula, Alaska . SURVEY LISTING Page 5 Wellbore: SD #2 Wellpath: MWD <0-11094> Date Printed: 23-Aug-2004 Comments . MOfftl I TVDfftl I Northfftl . I Eastfftl ¡ Comment 11094.od 8006.911 5358.63N 3905.97W Projection to TO HolêSections J Start MDfftl 12 11 0.00 81/21 1927.0C 7.000 5962.00 Start Start Northfftl Eastfftl O.OON O.OOE 788.30N 427.67\1\ 3894.89/\ 2192.27\1\ End End MOfftl TVDfftl 1927.00 5962.0C 11094.0C Start Northfftl EasUftl 788.30N 427.67\1\ SO #2 3894.89t\, 2192.27\1\ SO #2 5358.631\ 3905.97\1\ SO #2 Diameter nnl l Start TVDfftl 0.00 1575.671 3433.02 Name Top Top Top Top Shoe Shoe Shoe Wellbore MDfftl TVDfftl Northfftl Eastfftl MDfftl TVDfftl Northfftl 9 5/8" CasinQ 0.00 0.00 O.OON O.OOE 1927.00 1575.66 427.67\1\ SO #2 7.000in CasinQ 0.001 0.00 O.OON O.OOE 5942.0C 3419.91 2183.94\1\ SD #2 4 1/2in CasinQ 0.00 0.001 o.oONI o.oOEI 11094.0C 8006.91 3905.97W SO #2 All data is in Feet unless otherwise stated Coordinates are from Slot MO's are from Rig and TVO's are from Rig (Oatum #2 156.0ft above Mean Sea Level) Vertical Section is from O.OON O.OOE on azimuth 324.46 degrees Bottom hole distance is 6631.10 Feet on azimuth 323.91 degrees from Wellhead Calculation method uses Minimum Curvature method Prepared by Baker Hughes Incorporated 81. .... INTEQ , I' . 'M.) Marathon ,MARATHON Oil Company ~ c!-/tJ '? j . ALASKA ASSET TEAM Northern Business Unit P. O. Box 3128 Houston, TX 77253 Telephone: 713-296-2384 Fax: 713-499-8504 November 1,2004 Mr. Howard Oakland Alaska Oil & Gas Conservation Commission 333 W. 7th Avenue, Suite 100 Anchorage, AK 99501 RE: Marathon Susan Dionne #2 - CONFIDENTIAL API 50-133-2054-10 Enclosed are CONFIDENTIAL data for the Marathon Oil Susan Dionne 2 well. Dail y Drilling/Completion Reports............................................................. Paper Epoch Mud Log Report............... ....... .... ........ ..... .......... ...... ........ ............ .... Paper Epoch Formation Log MD ..........................................................................Paper Epoch Formation Log TVD.........................................................................Paper Epoch Drilling Dynamics Log.....................................................................Paper Epoch Drilling Dynamics Log TVD ...........................................................Paper CD (directory attached) for the following: Directional Survey...... .................. ................. ...... .......... .................. ... ....... Digital CML Array Induction Shallow Focused Final Print 8/20/04 ....................Digital CML Compensated Sonic Final Print 8/20/04 ..........................................Digital CML Photo Density Dual Spaced Neutron Final Print 8/20/04 ................ Digital CML TVD Array Induction Shallow Focused Final Print 8/20/04 .......... Digital CML Array Induction Vectar Processed Final Print 8/20/04 ...................Digital CML Array Induction Vectar Processing Final Print 8/7/04 ....................Digital CML Photo Density Dual Spaced Neutron Final Print 8/704 ..................Digital CML True Vertical Depth Array Induction Final Print 8/7/04 .................Digital CML Compensated Sonic Final Print 8/7/04 ............................................ Digital CML Array Induction Final Print 8/7/04 .................................................. Digital CBL- VDL-GR -CCL 9/20/04......... ..................... .......... ......... ......... ........... Digital Please review the enclosed data, sign and return one copy of this transmittal to the above letterhead address. Thank you, ,4/ ~J. !~r~. I\();v· .\ ~\I Kaynell Zema '---- Technical Assistant Enclosures .) . Marathon Oil Company Susan Dionne 2 Run 1 ¡g¡ FINAL_Data_Mar athon_Sd2_complete. dpk ¡g¡ FINAL_Data_Mar athon_Sd2....Plotted. dpk ¡g¡ FINAL_MAIN_PASS.las ~Susan Dionne #2 AOGCC Approved Permit.pdf Run 2 [gJ FINAL_SD2_Run 2_complete .dpk [gJ FINAL_SD2_Run 2.J)lotted. dpk ~ SD2R2_AIS_FINAL. tif [gJ SD2R2_BASIC .Ias ~ SD2R2_CSSYINAL.tif [gJ SD2R2_maindepth .Ias ~ SD2R2_PNS_FINAL. tif ~ SD2R2_ TVDAIS_FINAL. tif ~ SD2R2_ VEC_FINAL. tif Aug2004 (mt¡ sd2_dir . dat (mt¡ sd2Jun 1 . dpk (mt¡ sd2Junl-'ogs.las ŒI sd2_surveys_all.txt (mt¡ sd23dJield./as DA T File DPK File LAS File Text Document LAS File Directional Survey ~sd2_dír.dat ~Susan Dionne #2 INTEQ Final Directional Surveys,pdf llJ810 KB lJ234 KB llJ287 KB 138 KB 11,374 KB 1,646 KB 1,439 KB 2,741 KB 1,454 KB 13J069 KB 2,031 KB 1J363 KB 1,402 KB . 8/25/20045:57 PM 8/25/20045:57 PM 8/25/2004 6: 00 PM 9/712004 1 :20 PM 8/25/2004 6: 35 PM 8/25/20046:35 PM 8/25/2004 6: 17 PM 8/21/20044: 18 PM 8/25/20046:26 PM 8/21/2004 2: 54 PM 8/25/2004 6: 30 PM 8/25/2004 6: 32 PM 8/25/2004 6: 35 PM 8/20/2004 1: 09 PM 8/7/2004 1: 20 PM 8/7/2004 1: 22 PM 8/20/20048:43 AM 8/21/2004 2: 54 PM 4 KB 1,233 KB 11,235 KB 15 KB 13J069 KB 4 KB DAT File 119 KB Adobe Acrobat Doc., , 8/20/2004 1 :09 PM 9/7/2004 1: 19 PM e e doLt... \ () '\ WELL NAME SUSAN DIONNE 2 SUPERVISOR Rowland Lawson / Dave Morris FIELD NAME WILDCAT-FOR UNNAMED FIELD STATElPROV Alaska CURRENT STATUS" 6AM Move in and RIU rig. OPERATION COMMENTS R/U rig 24 HR PROG TMD 119 AUTH MD 11,094 MOC WI 907·283-1312 60.??oo COUNTYIOTHER I LAST CASING Kenai Borough 20.000 (in) @ 119 (ft) 124 HR FORECAST RIU rig. NRI DD0309646CAPDRL I DAILY WELL COST I NEXT CASING 9.625 (in) @ 1,900 (ft) CUM WFII "':lIS.. 21.0 RIG NAME'" NO. GLACIER DRILLING 1 RIG PHONE I LEAKOFF MANHRS WORKED ACCIDENT TYPE I LAST SAFETY MTG 396.00 None 7/26/2004 ACCIDENT DESCRIPTION: SAFETY MTG TOPICS: Moving and RIU rig. BOP PSI TEST LAST STOP CARD AUDIT REGULATORY INSP? N LAST RIG INSPECTION 06:00 12:00 6.00 119 119 AF MIRU RIG MIRU Release rig from maintenance 06:00 hrs 7/26/2004. Load out pump, pit, and generator houses. Load out water tank, MI centrifuge van, cement silo and sub base. RID camp, welding and mechanic shops, part house. Load out equipment trailers. 12:00 00:00 12.00 119 119 AF MIRU RIG MIRU PJSM. Spot sub base, mud boat, pump room, pits, generator and boiler houses. RIU camp. Spot carrier and prep to raise derrick. Install outriggers. Crane in fuel tank. Prep to crane in derrick house, choke house and dog house. Spot parts house, mech. shop and water tank. Pull pit house and pump house together. Pull electrical wires. 00:00 06:00 6.00 119 119 AF MIRU RIG MIRU Crane in front and back wind walls. Crane in choke house and dog house, flow line, stars and landing. Remove well house from SD#1 well. RIU pop Off lines on pumps. RIU gas buster. Run water line from well to rig and begin to fill pits. COMMENTS Release rig from maintenance 06:00hrs 06126/2004. Marathon Glacier Drilling Weaver Brothers (WBI) 1 24.00 Veco Alaska 19 228.00 Oilfield Hot Shot Service 5 60.00 Alaska Petroleum Contra 1 2 4 12.00 24.00 48.00 LAST BOP TEST: LAST CASING TEST: NEXT BOP TEST: 20.000 (psi) @ (ppg) 3,060 PrInted: 91312004 11 :03:56 AM e e WELL NAME SUSAN DIONNE 2 SUPERVISOR Rowland Lawson I Dave Morris FIELD NAME WILDCAT·FOR UNNAMED FIELD STATElPROV Alaska CURRENT STATUS 0 6AM RIU rig. OPERATION COMMENTS RIU rig. IGL 21.0 135.00 RIG NAME & NO. GLACIER DRILLING 1 RIG PHONE NRI DD0309646CAPDRL I ~..." ...~., ""QT NEXt CASING 9.625 (in) @ 1,900 (ft) L CUM WELL COST 24 HR PROG TMD 119 AUTH MD 11,094 MOC WI 907-283·1312 60.0000 COUNTYIOTHER I LAST CASING Kenai Borough 20.000 (in) @ 119 (ft) 124 .HR FORECAST RIU rig. I LEAKOFF MANHRS WORKED I ACCIDENT TYPE 377.00 None ACCIDENT DESCRIPTION: SAFETY MTG TOPICS: Rigging up. LAST SAFETY MTG 7/28/2004 BOP PSI TEST LAST STOP CARD AUDIT I ~EGULATORY INSP? LAST RIG INSPECTION 06:00 12:00 6.00 119 119 AF MIRU RIG MIRU RIU rig floor hydraulics. Prep and scope up derrick. Set trip tank and conex. Adjust derrick guide wires. Set top drive on rig floor. RIU carrier mufflers. Run electric wires and service lines. RIU stand pipe and cement lines. 12:00 00:00 12.00 119 119 AF MIRU RIG MIRU PJSM. Install panic line. Set cuttings box. RIU brake linkage and drillers console. RIU new water tank. Cut conductor pipe and install 21 1/4" starting head. Test seals on starting head. Spot catwalk and RIU beaver slide. RIU stairs to conex. N/U 211/4" diverter. Spot #3 pump house. Test run Dennison pump on #1 mud pump. Install new slats on shakers. 00:00 06:00 6.00 119 119 AF MIRU RIG MIRU RIU #3 mud pump house. RIU 16" diverter line and knife valve. RIU koomey lines. Install bell nipple. Install choke and kill lines to choke maifold and mud manifoled. Marathon Inlet Drilling Alaska Weaver Brothers (WBI) 1 24.00 ABS Vetco Gray 20 252.00 Alaska Petroleum Contra 4 48.00 1 4 5.00 48.00 LAST BOP TEST: LAST CASING TEST: NEXT BOP TEST: 20.000 (psi) @ (ppg) 3,060 Printed: QI3/2OO4 11 :03:57 AM e e 24 HR PROG TMD 119 AUTH MD 11,094 MOC WI 907-283-1312 60.??oo COUNTYIOTHER I LAST CASING Kenai Borough 20.000 (in) @ 119 (ft) 124 HR FORECAST Drill ahead. WELL NAME SUSAN DIONNE 2 SUPERVISOR Rowland Lawson I Dave Morris FIELD NAME WILDCAT-FOR UNNAMED FIELD STATElPROV Alaska CURRENT STATUS" &AM Drlg ahead 12.25 hole OPERATION COMMENTS Rig up, P/U DP, prepare/spud SD# 2. 21.0 RIG NAME" NO. GLACIER DRILLING 1 RIG PHONE MANHRS WORKED I ACCIDENT TYPE 348.00 None ACCIDENT DESCRIPTION: SAFETY MTG TOPICS: V door safety. LAST SAFETY MTG 7/29/2004 BOP PSI TEST NRI DD0309646CAPDRL I DAILY WELL COST I NEXT CASING 9.625 (in) @ 1,900 (ft) I Lt:AJ\UI'I' CUM ...CLI. ""ST I LAST RIG INSPECTION 06:00 18:00 12.00 119 AF MIRU RIG MIRU 119 18:00 19:00 1.00 119 AF DRLSUR TEST BOP 119 19:00 21:30 2.50 119 119 AF MIRU RIG MIRU 21:30 03:00 5.50 119 119 AF DRLSUR TRIP PUDP 03:00 04:00 1.00 119 119 AF DRLSUR TRIP BBHD 04:00 06:00 2.00 119 119 AF DRLSUR DRILL DOHR PJSM, cont R/U on SD-#2 P/U and install top drive torque tube. Install turnbuckles. R/U top drive. Mix mud cont. work on water tank. Accept rig for rig work@ 12:00 hrs 07/28/2004 PJSM, prepare and test diverter system. Perform time 1 volume test on accumulator. All tests successful. Witness waived by Mr Jim Regg. Install flowline. RIU rig floor pipe handling tools. Install service loop on TD. Install bales and DP elevators. PJSM, rack I strap 4" DP, P/U, stand bk in derrick. MIU bit #1, MWD 1 Motor assy, surface test same. Spud well O4:oohrs 7/29/04. Tag @ 30'. Commence clean out 20" conductor 30·113 ft 30 BIT/RUNI WOB (kip) I RPM 1/1 5/15 40/60 GPM I PRESS(psi) I P BIT(psl) 420 320 157 HRS 24Hr DIST(ft) 24Hr ROp(ftlhr) CUM HRS CUM DEPTH(ft) CUM ROp(ftlhr) 2.50 113.0 45.20 2.50 113.0 45.20 55.638 25,000 25,000 25,000 2,000 /1,900 2.50 Tri·Cone Bit, Bent Sub Motor, Non-Mag Integral Blade Stabilizer, Non-Mag Pony Collar, MWD Tool , Hang-Off Sub, Flex Pipe, Flex Pipe, Cross Over, Heavy Weight Drill Pipe (4), Drilling Jar, Heavy Weight Drill Pipe (19) Printed: 91312004 11 :03:58 AM e e 2 OILWELL 3 OILWELL 8.000 8.000 5.000 5.000 120 232.56 320 465.12 465.12 Marathon Glacier Drilling Baker Hughes Inteq 2 24.00 Epoch Well Services 19 228.00 M·I Drilling Fluids 2 48.00 2 24.00 1 24.00 LAST BOP TEST: LAST CASING TEST: NEXT BOP TEST: 20.000 (psi) @ (ppg) Printed: 913/2004 11 :03:58 NA e e WELL NAME SUSAN DIONNE 2 SUPERVISOR Rowland Lawson I Dave Morris FIELD NAME WILDCAT-FOR UNNAMED FIELD STATElPROV Alaska CURRENT STATUS 0 6AM CBU for wiper trip OPERATION COMMENTS Drill F/119' to 155'. Circ. hole clean. POOH. M/U MWD. Trouble shoot charge pump problem. M/U BHA. drill 155 to 860, POH 60 ft, CIO saver sub, drill 860 - 1051, CBU 24 HR PROG TMD 932.0 1,051 AUTH MD 11 ,094 MOCWI 907-283-1312 60.0000 COUNTYIOTHER I LAST CASING I NEXT CASING Kenai Borough 20.000 (in) @ 119 (ft) 9.625 (in) @ 1,900 (ft) 124 HR FORECAST CBU, wiper trip, drill ahead 12 1/4 hole towards csg TD 135.00 21.0 RIG NAME" NO. GLACIER DRILLING 1 RIG PHONE SAPIWBS COST NRI DD0309646CAPDRL I -... v "'''''' "'~c:rr CUM WELL COST I LEAKOFF MANHRS WORKED 348.00 ACCIDENT DESCRIPTION: SAFETY MTG TOPICS: Safety mind set SAFETY MTG LAST RIG INSPECTION 06:00 07:00 1.00 119 155 AF DRLSUR DRILL DOH Drill F/119' to 155'(ART = 1 hr) 07:00 07:30 0.50 155 155 AF DRLSUR CIRC CLN Circ. hole clean. 07:30 08:00 0.50 155 155 AF DRLSUR TRIP BHA POOH. 08:00 09:30 1.50 155 155 AF DRLSUR TRIP BBHD PIU MWD and orient. 09:30 13:30 4.00 155 155 TA DRLSUR RIG RCOM FLDS Trouble shoot pump#2 charge pump(find corroded wire). 13:30 14:00 0.50 155 155 AF DRLSUR TRIP BHA Cont. RIH wIBHA. 14:00 02:30 12.50 155 860 AF DRLSUR DRILL DOHD Resume drill ahead 12 1/4 hole drctnl. 155·860 ft Conn drag normal, cuttings average quantity 1 quality ART = 2 hrs, AST = 3.33 hrs 02:30 03:30 1.00 860 860 AF DRLSUR TRIP BHA POH 60 ft, CIO saver sub to 4" HT 38 03:30 05:00 1.50 860 1,051 AF DRLSUR DRILL DOHD Resume drill ahead 12 1/4 hole drctnl, 860·1051 ft Conn drag normal, cuttings average quantity 1 quality ART = 1.6 hrs, AST = .6 hrs Up 58, Dn 53, Rot 55, WOB 15, SPP 875, RPM 40 05:00 06:00 1.00 1,051 1.051 AF DRLSUR CIRC CLN CBU for wiper trip, shaker clean. No loss 1 gain BITIRUN WOB (kip) I RPM 1/1 5/15 40/60 GPM I PRESS(psi) I P BIT(psl) 484 860 216 HRS I 24Hr DIST(ft) 124Hr ROP(Whr)ICUM HRS CUM DEPTH(ft) CUM ROp(ftJhr) 8.90 938.0 105.39 11.40 1,051.0 92.19 55,638 58,000 55,000 2,200 12,150 Tri-Cone Bit, Bent Sub Motor, Non-Mag Integral Blade Stabilizer, Non-Mag Pony Collar, MWD Tool, Hang-Off Sub, Flex Pipe, Flex Pipe, Cross Over, Heavy Weight Drill Pipe (4), Drilling Jar, Heavy Weight OrUI Pipe (19) Printed: 91312004 11 :03:59 AM e e 1 OILWELL 2 OILWELL 3 OILWELL 8.000 8.000 8.000 5.000 5.000 125 5.000 125 242.25 242.25 860 860 484.50 484.50 484.50 0.0 0.00 0.00 0.00 0.00 0.00 0.00 0.00 553.0 14.60 340.30 549.08 44.86 46.86 -11.58 4.78 132.0 0.40 23.90 132.00 0.23 0.42 0.19 0.30 614.0 15.80 337.30 607.95 60.36 61.76 -17.37 2.35 192.0 0.60 10.80 192.00 0.56 0.92 0.33 0.38 674.0 18.00 336.00 665.36 77.41 77.77 -24.30 3.72 252.0 3.30 346.50 251.96 2.38 2.91 -0.01 4.61 733.0 21.40 335.10 720.89 96.92 95.87 -32.54 5.79 312.0 6.20 345.90 311.74 6.99 7.73 -1.21 4.83 794.0 24.60 332.60 177.04 120.44 117.24 -43.07 5.48 373.0 7.70 346.20 372.29 13.86 14.90 -2.98 2.46 860.0 28.10 330.70 836.17 149.49 143.00 -57.00 5.45 433.0 8.70 347.40 431.68 21.77 23.23 -4.93 1.69 922.0 31.10 330.10 890.08 179.95 169.62 -72.13 4.86 493.0 12.00 345.60 490.70 31.77 33.70 -7.47 5.63 985.0 33.20 329.70 943.41 213.32 198.62 -88.95 3.35 Marathon Glacier Drilling Baker Hughes Inteq 2 24.00 Epoch Well Services 19 228.00 M-I Drilling Fluids 2 48.00 2 1 24.00 24.00 LAST BOP TEST: LAST CASING TEST: NEXT BOP TEST: 20.000 (psi) @ (ppg) Printed: 91312004 11 :03:59 AM e e WELL NAME SUSAN DIONNE 2 SUPERVISOR Rowland Lawson / Dave Morris FIELD NAME WILDCAT-FOR UNNAMED FIELD STATElPROV Alaska CURRENT STATUS 0 &AM Circ / cond for trip OPERATION COMMENTS Wiper trip to the shoe. Service rig. RIH. Drill 1051' to 1927, CBU, wiper trip, circ in prep for 9 5/8 csg 24 HR PROG TMD 876.0 1 ,927 AUTH MD 11,094 MOCWI 907-283-1312 60.0000 COUNTYIOTHER I LAST CASING I NEXT CASING Kenai Borough 20.000 (in) @ 119 (ft) 9.625 (in) @ 1,900 (ft) 124 HR FORECAST Cire, POH, run I cmt 9 5/8 csg 21.0 RIG NAME & NO. GLACIER DRILLING 1 RIG PHONE ~ADJWA'::' mST NRI DD0309646CAPDRL I DAILY WELL COST CUM WELL COST I LEAKOFF MANHRS WORKED 348.00 ACCIDENT DESCRIPTION: SAFETY MTG TOPICS: Safety on and off job MTG PSI TEST LAST STOP CARD AUDIT INSP? LAST RIG INSPECTION 06:00 07:00 1.00 1,051 1,051 AF DRLSUR TRIP WTRP Wiper trip to 138'(hole in good condition). 07:00 08:00 1.00 1,051 1,051 AF DRLSUR RIG SERV C/O TD grabber dies. Service rig. 08:00 08:30 0.50 1,051 1,051 AF DRLSUR TRIP WTRP RIH(no fill). 08:30 01:30 17.00 1,051 1,927 AF DRLSUR DRILL DOHD Dir drill and survey F/1051 , to 1927 ft TD 9 5/8 O5g pt at 1927 ft ART = 5.4 hrs, AST = 6.6 hrs 01:30 02:30 1.00 1,927 1,927 AF DRLSUR CIRC CLN Cire clean, pump Hi Vis sweep for wiper trip. 02:30 04:00 1.50 1,927 1,927 AF DRLSUR TRIP WTRP PJSM, POH wiper trip to 20" shoe. No drag / swab. 04:00 04:30 0.50 1,927 1,927 AF DRLSUR RIG SERV Service Rig 04:30 05:30 1.00 1,927 1,927 AF DRLSUR TRIP WTRP PJSM, RIH wiper trip(SLM), caution wash 60 ft, no fill. No dn drag, wellbore exc condition. 05:30 06:00 0.50 1,927 1,927 AF DRLSUR CIRC CLN Circ clean in prep for 9 5/8 O5g RPM 40/60 GPM I PRESS(pai) I P BIT(pai) I HRS 124Hr DIST(ft) 24Hr Rop(ftlhr) CUM HRSICUM DEPTH(ft) CUM ROP(ftlhr) 484 1,275 229 12.00 876.0 73.00 23.40 1,927.0 82.35 55,638 65,000 55,000 55,000 2,700 12,500 23.40 Tri-Cone Bit, Bent Sub Motor, Non-Mag Integral Blade Stabilizer, Non-Mag Pony Collar, MWD Tool, Hang-Off Sub, Flex Pipe, Flex Pipe, Cross Over, Heavy Weight Drill Pipe (4), Drilling Jar, Heavy Weight Drill Pipe (19) 1 OILWELL 2 OILWELL 3 OILWELL 8.000 8.000 8.000 5.000 5.000 125 5.000 125 242.25 242.25 1,275 1,275 484.50 484.50 484.50 Printed: 91312004 11:04:02 AM e e 1,048.0 33.70 329.60 995.98 247.91 228.59 -106.50 0.80 1,484.0 47.80 330.00 1,329.54 525.93 468.55 -248.87 4.01 1,111.0 34.80 329.40 1,048.05 283.23 259.14 -124.49 1.76 1,547.0 49.70 330.40 1,371.07 573.05 509.66 -272.41 3.05 1,172.0 36.80 329.20 1,097.52 318.78 289.82 -142.71 3.28 1,609.0 52.20 330.40 1,410.13 620.94 551.52 -296.19 4.03 1,235.0 38.70 329.50 1,147.34 357.21 323.00 -162.37 3.03 1,673.0 54.90 330.60 1,448.15 672.13 596.32 -321.53 4.23 1,297.0 40.70 328.90 1,195.04 396.67 357.01 -182.65 3.28 1,735.0 57.40 331.10 1,482.68 723.30 641.29 -346.61 4.09 1,359.0 42.30 328.90 1,241.47 437.63 392.19 -203.87 2.58 1,797.0 60.10 330.70 1,514.84 775.96 687.60 -372.39 4.39 1,421.0 45.30 329.50 1,286.21 480.39 429.05 -225.84 4.88 1,859.0 62.90 331.30 1,544.43 830.09 735.25 -398.80 4.60 Marathon Glacier Drilling Baker Hughes Inteq 2 24.00 Epoch Well Services 19 228.00 M-I DnDing Fluids 2 48.00 2 1 24.00 24.00 LAST BOP TEST: LAST CASING TEST: NEXT BOP TEST: 20.000 (psi) @ (ppg) 3,060 Printed: 91312004 11 :04:02 AM e e WELL NAME SUSAN DIONNE 2 SUPERVISOR Rowland Lawson / Dave Morris FIELD NAME WILDCAT-FOR UNNAMED FIELD STATElPROV Alaska CURRENT STATUS 06AM Cut 9 5/8 csg, install wellhead OPERATION COMMENTS Circ, POH, LID BHA, RU I run I cmt 9 5/8 csg, WOC, nipple dn diverter, NIU wellhead 24 HR PROG TMD 1,927 AUTH MD 11,094 DD0309646CAPDRL MOC WI NRI I DAILY WELL COST 907-283-1312 60.0000 , COUNTYIOTHER I LAST CASING I NEXT CASING Kenai Borough 9.625 (in) @ 1,927 (ft) 7.000 (in) @ 5,930 (ft) 124 HR FORECAST Nipple 00, install head, nipple up / test BOPE 21.0 RIG NAME Be NO. GLACIER DRILLING 1 RIG PHONE PSI TEST MANHRS WORKED 446.00 ACCIDENT DESCRIPTION: SAFETY MTG TOPICS: Nipple up I dn review ---....,nC!,...~ CUM WELL COST I LI:AJ\U.... LAST STOP CARD AUDIT REGULATORY INSP? LAST RIG INSPECTION N 06:00 06:30 0.50 1,927 1,927 AF DRLSUR CIRC CLN 06:30 08:30 2.00 1,927 1,927 AF DRLSUR TRIP BHA 08:30 10:30 2.00 1,927 1,927 AF DRLSUR TRIP BBHD 10:30 13:30 3.00 1,927 1,927 AF CSGSUR EQUIP RURD 13:30 17:30 4.00 1,927 1,927 AF CSGSUR CSG RUN 17:30 19:30 2.00 1,927 1,927 AF CSGSUR CIRC MUD 19:30 22:00 2.50 1,927 1,927 AF CSGSUR CEMT PRIM 22:00 06:00 8.00 1,927 1,927 AF CSGSUR NUND DBOP P BITO Cont. circ. clean(CBUX3, 476gpm, 1220psi). Flow check(well static). pooH(wet). Cont. POOH LID BHA and bit. R/U Weatherford CSG running tools. PJSM prior to running CSG. P/U and Baker lok shoe tract. MIU 9 518" swedge and circ. shoe tract. LJD swedge and cont. to run 9 518" 47ppf L-80 Butt-mod CSG(totaI47jnts). Shoe set@1927'. R/U BJ cement head. Circ(1.5XCSG volume, 180gpm, 180psi). PJSM, cmt 9 518 surface csg as follows: Pump 5 bbls H2o, test lines 3500 psi Drop btrn plug, confirm plug drop Pump 40 bbl 8.4 ppg " Mud Clean \I " as spacer Mix I pump 420 sks (188 bbls) Type 1,12 ppg slurry Drop top plug, confirm plug drop, pump 5 bbl H2o Displace 136 bbls tot, bump plug with 1020 psi Hold press 5 min, bleed, floats holding. ICP = 180 psi, FCP = 390 40 bbl12 ppg cmt retums to surface, no gain I loss Bump plug / cmt in place 2140 hrs PJSM, nipple dn diverter system while woe Flush stack. rig dn cmt hd, C/O bales elevators, clear rig floor, clean pits, remove diverter lines, alii related diverter equip. 5 HRS I 24Hr DIST() 119.0 7/2912004 1-1-WT-A-E- 1-NO-TD 24Hr ROP() ICUM HRS CUM DEPTH() I CUM ROP() Printed: 9IaI2OO4 11 :04:07 AM e e I Tri-Cone Bit, Bent Sub Motor, Non-Mag Integral Blade Stabilizer. Non-Mag Pony Collar, MWD Tool, Hang-Off Sub, Flex Pipe, Flex Pipe, Cross Over, Heavy Weight Drill Pipe (4), Drilling Jar, Heavy Weight Drill Pipe (19) 1 OILWELL 2 OILWELL 3 OILWELL 8.000 8.000 8.000 5.000 5.000 125 5.000 125 242.25 242.25 800 800 484.50 484.50 484.50 Marathon Glacier Drilling Baker Hughes Inteq Epoch Well Services 2 24.00 M-I DriUing Fluids 19 228.00 BJ Services 2 48.00 Weatherford Drilling & Int 2 24.00 R&K Industrial 1 24.00 5 42.00 3 24.00 4 32.00 LAST BOP TEST: LAST CASING TEST: NEXT BOP TEST: 20.000 9.625 18.730 8.755 (psi) @ (ppg) (psi) @ (ppg) 19 1,927 119 1,575 133.00 47.00 K-55 L-80 3.060 6,330 Printed: 91312004 11 :04:07 AM e e WELL NAME SUSAN DIONNE 2 SUPERVISOR Rowland Lawson I Dave Morris FIELD NAME WILDCAT-FOR UNNAMED FIELD STATE/PROV Alaska CURRENT STATUS 0 6AM P/U 4" DP, stand bk in mast OPERATION COMMENTS N/D diverter. Remove 21 1/4" starter head. Install I test wellhead, NIU BOPE, test BOP P/U 4" DP GL 21.0 135.00 RIG NAME" NO. GLACIER DRILLING 1 RIG PHONE CUM WELL COST 124 HR PROG TMD 1,927 AUTH MD 11,094 DD0309646CAPDRL MOC WI NRI I DAILY WELL COST 907-283-1312 60.0000 _ COUNTYIOTHER I LAST CASING I NEXT CASING Kenai Borough 9.625 (in) @ 1,927 (ft) 7.000 (in) @ 5,930 (ft) 124 HR FORECAST P/U DP, MIU 81/2 BHA, drill out, LOT I LEAKOFF MANHRS WORKED ACCIDENT TYPE LAST SAFETY MTG BOP PSI TEST 356.00 None 8/2/2004 8/2/2004 ACCIDENT DESCRIPTION: SAFETY MTG TOPICS: Safety working with hydraulics LAST STOP CARD AUDIT REGULATORY INSP? LAST RIG INSPECTION N 06:00 07:30 1.50 1,927 1,927 AF CSGSUR NUND DBOP Rough cut 9 5/8" CSG. LID cut joint. N/D bell nipple. 07:30 08:30 1.00 1,927 1,927 AF CSGSUR NUND DBOP NID 21 1/4" diverter. Remove 21 1/4" starter head. 08:30 13:00 4.50 1,927 1,927 AF CSGSUR NUND UwLH Cut 20" conductor. Final cut 9 518" CSG. and dress cut. 13:00 14:30 1.50 1,927 1,927 AF CSGSUR NUND UwLH Install Vetco 9518" X11" 3M X 11" 5M multibowl SOW. Test seals to 1oo0psV10min. 14:30 23:00 8.50 1,927 1,927 AF CSGSUR NUND UBOP NIU 11"5M X 13518" 5M DSA. NIU 135/8" 5M spacer spool. NIU 13 518" 5M R,S,Rd,A BOP, install choke I kill lines, fillup I trip tank lines flow line turn buckles 23:00 00:00 1.00 1,927 1,927 AF CSGSUR TEST BOP Function test BOPE, set test plug, RIU for BOP test 00:00 04:30 4.50 1,927 1,927 AFCSGSUR TEST BOP PJSM, test BOPE, rams, annular, choke mnfld, kill lines, top drY valves to mud pumps, blinds, all related equip, 250 12500 psi. Choke valve #3 grease Ire-tested. All tests successful, one re-test. 04:30 05:30 1.00 1,927 1,927 AFCSGSUR TEST CSG PJSM, test 9 5/8 O$g to 2500 psi 130 min. Test successful, no re-test. 05:30 06:00 0.50 1,927 1,927 AF CSGSUR TRIP PUDP PJSM, prepare and begin P/U 4" DP for drill out. 5 15/15115115115111/1 1,927.0 8/2/2004 O-O-CT-G·D- 1-NO-TD HRS I 24Hr DISTO I 24Hr ROP() ¡CUM HRSI CUM DEPTH() I CUM ROP() I Polycrystalline Diamond Bit, Bent Sub Motor AKO 1 deg . Non-Mag Integral Blade Stabilizer, MWD Tool , Hang-Off Sub, Flex Pipe, Cross Over, Heavy Weight Drill Pipe (4), Drilling Jar. Heavy Weight Drill Pipe (19), Cross Over Printed: Q/3/2OO4 11 :04:08 "'" e e 1 OILWELL 2 OILWELL 3 OILWELL 8.000 8.000 8.000 5.000 5.000 5.000 0.00 0.00 0.00 Marathon Glacier Drilling Baker Hughes Inteq 2 24.00 Epoch Well Services 19 228.00 M-I Drilling Fluids 3 48.00 ABB Vetco Gray 2 1 1 24.00 24.00 8.00 LAST BOP TEST: 8/212004 LAST CASING TEST: 8/212004 NEXT BOP TEST: 8/9/2004 20.000 9.625 18.730 8.755 (psi) @ (ppg) (psi) @ (ppg) 119 1,927 119 1,575 133.00 47.00 K-55 L-80 3,060 6,330 Printed: 91312004 11 :04:08 NoA e e WELL NAME SUSAN DIONNE 2 SUPERVISOR Rowland Lawson 1 Dave Morris FIELD NAME WILDCAT-FOR UNNAMED FIELD STATE/PROV Alaska CURRENT STATUS 0 6AM Drill ahead drctnl 8 1/2 hole OPERATION COMMENTS P/U 4" DP. P/U BHA. RIH, drill shoe track, circ, drill 1947 ft, LOT, drill 1947 - 2650 ft 24 HR PROG TMD 2,650 AUTH MD 11,094 MOCWI 907-283-1312 60.0000 COUNTY/OTHER I LAST CASING I NEXT CASING Kenai Borough 9.625 (in) @ 1,927 (ft) 7.000 (in) @ 5,930 (ft) 124 HR FORECAST Drill ahead, wiper trip, drill ahead IGL 21.0 135.00 RIG NAME 8& NO. GLACIER DRILLING 1 RIG PHONE C!&DIWR..c; COST NRI DD0309646CAPDRL I n4l1 v w", I ""C!T I I'.IU lAIC. I I"nICrr I I LEAKOFF 17.82 MANHRS WORKED ACCIDENT TYPE LAST SAFETY MTG BOP PSI TEST 348.00 None 8/312004 8/212004 ACCIDENT DESCRIPTION: SAFETY MTG TOPICS: Walk around inspections LAST STOP CARD AUDIT REGULATORY INSP? LAST RIG INSPECTION N 06:00 13:30 15:00 17:30 18:15 18:30 20:00 20:30 13:30 15:00 17:30 18:15 18:30 20:00 20:30 06:00 1,927 1,927 1,927 1,927 1,927 1,947 1,947 1,947 AF CSGSUR TRIP AF CSGSUR TRIP AF CSGSUR TRIP AF CSGSUR DRILL AF CSGSUR DRILL AF CSGSUR MUD AF CSGSUR TEST AF DRLIN1 DRILL 7.50 1.50 2.50 0.75 0.25 1.50 0.50 9.50 1,927 1,927 1,927 1,927 1,947 1,947 1,947 2,650 PUDP BBHD PUDP CEMT DOHD CHNG LOT COHD P/U 4" DP. P/U 8 1/2" bit and BHA. P/U 4" DP while RIH(total130jnts DP). Tag @ 1840'. Drill FC, shoe tract and shoe. Drill ahead 20 ft new fmtn for LOT Ciro 1 displace to 8.9 ppg Flo-Pro system Pull in to shoe, perform LOT, results 730 psi 117.8 EMW Drill ahead 8 1/2 hole, drctnl1947 - 2650 ft ART = 4.7 hrs, AST = 1.7 hrs No conn drag, no gain 1 loss, cuttings return normal Up 60, Dn 40, Rot 50 WOB 10, RPM 40, SPP 1326, SPM 300 No Acc, no dn time BIT/RUN WOB (kip) I RPM 2/2 5/10 40/60 GPM I PRESS(psl) I P BIT(psl) 523 1,237 305 7 HRS 124Hr DlST(ft) 124Hr ROP(ftJhr)ICUM HRSICUM DEPTH(ft) CUM ROp(ftJhr) 6.40 723.0 112.97 6.40 723.0 112.97 o 60,000 50,000 50,000 2,700 12,625 Polycrystalline Diamond Bit, Bent Sub Motor AKO 1 deg . Non-Mag Integral Blade Stabilizer, MWD Tool , Hang-Off Sub, Flex Pipe, Cross Over, Heavy Weight Drill Pipe (4), Drilling Jar, Heavy Weight Drill Pipe (19), Cross Over 1 OILWELL 2 OILWELL 3 OILWELL 8.000 8.000 8.000 5.000 5.000 5.000 90 90 90 523.26 523.26 523.26 210 210 174.42 174.42 174.42 1,237 1,237 1,237 60 60 Printed: 91312004 11:04:11 AM e e 1,955.0 2,078.0 2,202.0 62.20 62.80 63.30 331.70 1,588.68 914.64 810.11 -439.46 330.70 1,645.48 1,022.98 905.72 -492.01 330.20 1,701.67 1,132.91 1,001.87 -546.52 0.82 0.87 0.54 2,326.0 2,453.0 2,578.0 63.20 64.10 82.80 330.80 1,757.49 1,243.03 1,098.25 -601.05 330.50 1,813.86 1,356.17 1,197.44 -656.83 330.40 1,869.73 1,467.37 1,294.71 -711.98 0.44 0.74 1.04 Marathon Glacier Drilling Baker Hughes Inteq 2 24.00 Epoch Well Services 19 228.00 M-I Drilling Fluids 3 48.00 2 1 24.00 24.00 LAST BOP TEST: 8/212004 LAST CASING TEST: 8/212004 NEXT BOP TEST: 8/9/2004 20.000 9.625 18.730 8.755 17.82 (psi) @ (ppg) 722 (psi) @ 9.00 (ppg) 119 1,927 119 1,575 133.00 47.00 K-55 L-80 3,060 6,330 Printed: 9/312004 11:04:111Wt e e WELL NAME SUSAN DIONNE 2 SUPERVISOR Rowland Lawson 1 Dave Morris FIELD NAME WILDCAT-FOR UNNAMED FIELD STATElPROV Alaska CURRENT STATUS. &AM Drill ahead 8 1/2 hole OPERATION COMMENTS Drill F/2650'to 3251'. Circ. clean. POOH to shoe. Cut drlg line, ser rig, RIH, drlill 3251 - 3313, chg dies top drv, drill 3313 - 4062 ft IGL 21.0 135.00 RIG NAME" NO. GLACIER DRILLING 1 RIG PHONE ~ADAllDa r'nQT 24 HR PROG TMD 1,412.0 4,062 AUTH MD 11,094 MOO WI 907·283-1312 60.??oo COUNTYIOTHER I LAST CASING I NEXT CASING Kenai Borough 9.625 (in) @ 1,927 (ft) 7.000 (in) @ 5,930 (ft) 124 HR FORECAST Drill, wiper trip, drill ahead towards csg TD DD0309646CAPDRL NRI I n.nv'.'I'!'I' """..... I ........ UlCI I ~nAT I LEAKOFF 17.82 MANHRS WORKED 372.00 ACCIDENT DESCRIPTION: SAFETY MTG TOPICS: How to read MSDS LAST STOP CARD AUDIT INSP? RIG INSPECTION 06:00 13:30 7.50 2,650 3,251 AF DRLIN1 DRILL DOHD Dir drill and survey F/2650' to 3251'. 13:30 16:00 2.50 3,251 3,251 AF DRLIN1 CIRC CLN Circ. ctean(CBUX8, 75RPM, 520GPM, 1422psi). 16:00 17:00 1.00 3,251 3,251 AF DRLIN1 TRIP WTRP POOH to CSG shoe(hole slick). 17:00 18:00 1.00 3,251 3,251 AF DRLlN1 RIG SCDL Slip and Cut Drill Line 18:00 18:30 0.50 3,251 3,251 AF DRLlN1 RIG SERV Service Rig 18:30 19:00 0.50 3,251 3,251 AF DRLIN1 TRIP WTRP RIH wiper trip, precaution wash 60 ft, no fill. 19:00 20:30 1.50 3,251 3,313 AF DRLlN1 DRILL DOHD Drill ahead 8 1/2 hole drctnl, 3251 ·3313 ft 20:30 21:30 1.00 3,313 3,313 TA DRLlN1 RIG RCOM TOPS Change "grabber" dies, top drv 21:30 06:00 8.50 3,313 4,062 AF DRLlN1 DRILL DOHD Resume drill ahead 8112 hole drctnl, 3313 - 4062 ft ART = 8.5 hrs, AST = 2.7 hrs Connections free, no loss 1 gain Up 75, Dn 50, Rot 60 WOB 10, RPM 40, SPP 1719, SPM 300 Max gas 930, Ave gas 35 No ace 11 hr dn time 12 BITIRUN\ WOB (kip) I RPM 2/2 5110 40/60 1,927.0 8/212004 HRS I 24Hr DIST(ft) 24Hr ROp(ftlhr) CUM HRSICUM DEPTH(ft) CUM ROp(ftlhr) 11.20 1,412.0 126.07 17.60 2,135.0 121.31 o 75,000 60,000 60,000 3,000 /2,750 POlycrystalline Diamond Bit , Bent Sub Motor AKO 1 deg , Non-Mag Integral Blade Stabilizer, MWD Tool, Hang-Off Sub, Flex Pipe, Cross Over, Heavy Weight Drill Pipe (4), Drilling Jar, Heavy Weight Drill Pipe (19), Cross Over 1 OILWELL 2 OILWELL 8.000 8.000 5.000 5.000 90 90 174.42 174.42 1,600 1,600 523.26 523.26 60 60 290 300 Printed: 9/3/2004 11:04:15 AM e e 2.703.0 64.60 330.60 1,925.11 1,578.81 1.392.24 -767.15 1.45 3.387.0 66.80 329.10 2,215.85 2.195.29 1.926.37 -1,080.02 0.66 2.827.0 63.70 329.80 1,979.17 1,689.84 1.489.08 -822.61 0.93 3,511.0 66.30 330.10 2,265.20 2,308.59 2.024.49 -1,137.59 0.84 2.952.0 64.80 329.80 2,033.48 1,801.93 1,586.38 -879.24 0.88 3,636.0 65.90 329.20 2,315.84 2,422.40 2.123.11 -1.195.33 0.73 3,077.0 64.30 329.30 2.087.19 1.914.36 1,683.68 -936.44 0.54 3,760.0 65.20 329.50 2.367.172,534.872.220.22 -1,252.88 0.61 3,200.0 64.50 329.50 2.140.34 2,024.87 1,779.16 -992.91 0.22 3.885.0 84.20 329.20 2,420.58 2.647.47 2.317.44 -1,310.49 0.83 3,325.0 67.10 329.40 2,191.582,138.44 1,877.34 -1.050.85 2.08 Marathon Glacier Drilling Baker Hughes Inteq 2 24.00 Epoch Well SelVices 19 228.00 M·I Drilling Fluids 3 48.00 4 1 48.00 24.00 LAST BOP TEST: 8/2/2004 LAST CASING TEST: S/2/2004 NEXT BOP TEST: 81912004 20.000 9.625 18.730 8.755 17.82 (psi) @ (ppg) 722 (psi) @ 9.00 (ppg) 119 1,927 119 1,575 133.00 47.00 K-55 L-80 3,060 6,330 Printed: 91312004 11:04:15 AM e e WELL NAME SUSAN DIONNE 2 SUPERVISOR Rowland Lawson I Larry Myers FIELD NAME WILDCAT-FOR UNNAMED FIELD STATElPROV Alaska CURRENT STATUS 0 &AM Drill ahead 8 1/2" hole OPERATION COMMENTS Drill F/4062' to 4558'. Circ. clean. GL 21.0 135.00 RIG NAME" NO. GLACIER DRILLING 1 RIG PHONE NRI DD0309646CAPDRL I DAILY WELL I".n-crr ~.I__""I ''''~I 24 HR PROG TMD 1,370.0 5,432 AUTH MD 11 ,094 MOO WI 907-283-1312 60.??oo COUNTYIOTHER I LAST CASING I NEXT CASING Kenai Borough 9.625 (in) @ 1,927 (ft) 7.000 (in) @ 5,930 (ft) 124 HR FORECAST Drill ahead 81/2" hole to 7" Csg. pt. I LEAKOFF 17.82 POOH to 3140'. CIO grabber box on TD and service rig. RIH.Drill F/4558' to 5432' MANHRS WORKED ACCIDENT TYPE 372.00 None ACCIDENT DESCRIPTION: SAFETY MTG TOPICS: MTG LAST STOP CARD AUDIT N 06:00 13:00 7.00 4,062 4,558 AF DRLIN1 DRILL COHD Dir drill and survey F/4062' to 4558'(ART =3.0 hrs AST =1.3 hrs). 13:00 14:30 1.50 4,558 4,558 AF DRLlN1 CIRC CLN Circ. clean(CBU X 5, 67RPM, 523gpm, 1794psi). 14:30 16:00 1.50 4,558 4,558 AF DRLlN1 TRIP WTRP POOH to 3140'(hoIe in good condition). 16:00 17:00 1.00 4,558 4,558 AF DRLlN1 RIG SERV Service rig and CIO grabber box on top drive. 17:00 18:00 1.00 4,558 4,558 AF DRLlN1 TRIP WTRP RIH (no fill). 18:00 06:00 12.00 4,558 5,432 AF DRLlN1 DRILL DOHD Dir drill and survey F/4558' to 5432' (ART =5.6 hr. AST =2 hrs). BITIRUN WOB (kip) I RPM 2/2 5/10 60/60 GPM I PRESS(psi) I P BIT(pII) 518 2,100 1,927.0 8/2/2004 HRS I 24Hr DIST(ft) 124Hr ROP(ftlhr)!CUM HRSICUM DEPTH(ft) CUM ROp(ftlhr) 11.90 1,370.0 115.13 29.50 3,505.0 118.81 o 100,000 73,000 73,000 f PoIycrystalline Diamond Bit , Bent Sub Motor AKO 1 deg , Non-Mag Integral Blade Stabilizer, MWD Tool , Hang-Off Sub, Flex Pipe, Cross Over, Heavy Weight Drill Pipe (4), Drilling Jar , Heavy Weight Drill Pipe (19), Cross Over 1 OILWELL 2 OILWELL 3 OILWELL 8.000 8.000 8.000 5.000 90 5.000 90 5.000 90 172.58 172.58 172.58 2,100 2,100 2,100 517.74 517.74 517.74 60 60 60 390 390 390 4,010.0 63.70 330.30 2,475.48 2,759.29 2,414.44 -1,367.06 0.89 4,633.0 63.80 331.20 2,764.973,307.22 2,897.09 -1,634.07 2.04 4,134.0 62.90 330.40 2,531.20 2,869.48 2,510.72 -1,421.86 0.65 4,757.0 63.60 331.90 2,819.91 3,417.54 2,994.82 -1,687.03 0.53 4,258.0 62.20 331.10 2,588.36 2,978.86 2,606.72 -1,475.63 0.75 4,883.0 63.80 331.80 2,875.743,529.56 3,094.42 -1,740.32 0.17 4,384.0 61.40 331.20 2,647.90 3,089.15 2,703.98 -1,529.21 0.64 5,005.0 63.20 332.30 2,930.173,637.783,190.87 -1,791.49 0.61 4,508.0 61.30 331.80 2,707.35 3,197.14 2,799.61 -1,581.14 0.43 5,128.0 63.10 332.60 2,985.733,746.463,288.16 -1,842.25 0.23 Printed: 9r.!J2OO4 11:04:16 AM e e 5,252.0 62.30 5,313.0 61.40 332.40 3,042.60 3,855.56 3.385.90 -1,893.13 0.66 331.80 3,071.38 3.908.87 3,433.43 -1,918.29 1.71 5,374.0 60.90 331.20 3,100.81 3,961.893.480.39 -1.943.79 1.19 Marathon Glacier Drilling Baker Hughes Inteq 2 24.00 Epoch Well Services 19 228.00 M-I Drilling Fluids 3 48.00 4 48.00 1 24.00 LAST BOP TEST: 8/2/2004 LAST CASING TEST: 81212004 NEXT BOP TEST: 8/912004 20.000 9.625 18.730 8.755 17.82 (psi) @ (ppg) 722 (psi) @ 9.00 (ppg) 119 1,927 119 1.575 133.00 47.00 K·55 L-BO 3,060 6,330 (O~HDt~\\f\\. Printed: 91312004 11:04:16AM e e WELL NAME SUSAN DIONNE 2 SUPERVISOR Rowland Lawson I Larry Myers AELD NAME WILDCAT-FOR UNNAMED FIELD STATElPROV Alaska CURRENT STATUS 0 6AM RIH OPERATION COMMENTS Drill F/5432' to 5962'. CBU X 5, Wiper trip to shoe, Service rig, TIH, 124 HR PROG TMD 135.00 530.0 5,962 AUTH MD 11,094 MOC WI 907-283-1312 60.0000 COUNTYIOTHER ILASTCASINQ Kenai Borough 9.625 (in) @ 1,927 (ft) 124 HR FORECAST CBU, POOH, Run logs, NRI DD0309646CAPDRL I ~.." v W :[ L COST I NEXT CASING 7.000 (in) @ 5,930 (ft) CUM WELL COST 21.0 RIG NAME" NO. GLACIER DRILLING 1 RIG PHONE I LEAKOFF 17.82 MANHRS WORKED ACCIDENT TYPE LAST SAFETY MTG 444.00 None 8/612004 ACCIDENT DESCRIPTION: SAFETY MTG TOPICS: Defiberalator usage BOP PSI TEST 8/212004 LAST STOP CARD AUDIT I ~EGULATORY INSP? I LAST RIG INSPECTION 06:00 20:00 14.00 5,432 5,962 AF DRLlN1 DRILL DOHD Dir drill and survey F/5432' to 5962' (ART =2.9 hrs. AST =6.1 hrs). 20:00 22:30 2.50 5,962 5,962 AF DRLlN1 CIRC CLN Circ clean (CBU X 5 times). 22:30 03:30 5.00 5,962 5,962 AF DRLlN1 TRIP WTRP Wiper Trip To 9 5/8" csg. shoe ( tight F/51 00 to 4558'). 03:30 04:30 1.00 5,962 5,962 AF DRLIN1 RIG SERV Service Rig and change liner and swab in #3 pump. 04:30 06:00 1.50 5,962 5,962 AF DRLlN1 TRIP WTRP TIH. BITIRUN WOB (kip) I RPM 2/2 5/10 70/70 GPM I PRESS(psl) I P BIT(psi) 518 2,300 1,927.0 81212004 HRS 24Hr DIST(ft) 124Hr ROp(ftlhr) CUM HRSICUM DEPTH(ft) CUM ROP(ftlhr) 9.00 530.0 58.89 38.50 4,035.0 104.81 o 100,000 70,000 70,000 7,000 16,000 POlycrystalline Diamond Bit, Bent Sub Motor AKO 1 deg , Non-Mag Integral Blade Stabilizer, MWD Tool, Hang-Off Sub, Flex Pipe, Cross Over, Heavy Weight Drill Pipe (4), Drilling Jar, Heavy Weight Drill Pipe (19), Cross Over 1 OILWELL 2 OILWELL 3 OILWELL 8.000 8.000 8.000 5.000 5.000 5.000 90 90 90 172.58 172.58 172.58 2,300 2,300 2,300 517.74 517.74 517.74 60 60 60 380 400 380 5,437.0 60.40 331.60 3,131.694,016.40 3,528.60 -1,970.07 0.97 5,747.0 53.60 328.50 3,297.68 4,276.86 3,754.24 -2,102.28 2.58 5,499.0 60.00 331.00 3,162.50 4,069.82 3,575.79 -1,995.91 1.06 5,810.0 51.70 327.70 3,335.90 4,326.83 3,796.76 -2,128.74 3.18 5,561.0 58.50 329.30 3,194.20 4,122.84 3,622.00 -2,022.42 3.38 5,872.0 50.40 327.40 3,374.88 4,374.98 3,837.45 -2,154.61 2.13 5,623.0 57.30 329.10 3,227.154,175.183,667.12 -2,049.31 1.95 5,912.0 50.00 326.60 3,400.48 4,405.68 3,863.22 -2,171.34 1.83 5,685.0 55.20 328.60 3,261.59 4,226.57 3,711.23 -2,075.98 3.45 Printed: 91312004 11:04:18AM e e Marathon Glacier Drilling Baker Hughes Inteq Epoch Well Services 2 24.00 M-I Drilling Fluids 19 228.00 Swaco 3 48.00 R&K Industrial 4 48.00 1 2 1 24.00 48.00 24.00 LAST BOP TEST: 81212004 LAST CASING TEST: 81212004 20.000 9.625 18.730 8.755 17.82 (psi) @ (ppg) 722 (psi) @ 9.00 (ppg) 119 1,927 119 1,575 133.00 47.00 K-55 L-80 3,060 6,330 Printed: 91312004 11:04:18 AM e e WELL NAME SUSAN DIONNE 2 SUPERVISOR Rowland Lawson 1 Larry Myers FIELD NAME WILDCAT-FOR UNNAMED FIELD STATElPROV Alaska CURRENT STATUS 0 6AM Logging OPERATION COMMENTS RIH. Circ. clean and condition mud. POOH. PIU Reeves Quad Combo logs, RIH on DP, CBU, Deploy logging tools, POOH logging. 21.0 RIG NAME" NO. GLACIER DRILLING 1 RIG PHONE ] 24 HR PROG TMD 135.00 5,962 AUTH MD 11,094 MOCWI 907-283-1312 60.0000 COUNTYIOTHER I LAST CASING I NEXT CASING Kenai Borough 9.625 (in) @ 1,927 (ft) 7.000 (in) @ 5,930 (ft) 124 HR FORECAST Log well, Run & Cmt 7" Csg. NRI DD0309646CAPDRL I DAILY WELL COST CUM WELL COST I LEAKOFF 17.82 MANHRS WORKED ACCIDENT TYPE LAST SAFETY MTG BOP PSI TEST 498.00 Near Miss Bn/2004 81212004 ACCIDENT DESCRIPTION: Sub hung up while being pulled off of rack. SAFETY MTG TOPICS: Handling logging tools LAST STOP CARD AUDIT REGULATORY INSP? N I LAST RIG INSPECTION 06:00 07:00 1.00 5,962 5,962 AF DRLlN1 TRIP WTRP RIH(no fill). 07:00 10:00 3.00 5,962 5,962 AF DRLIN1 CIRC CLN Circ. clean and condo mUd(CBUX6, 22oopsi,72RPM,510gpm, 175units wiper gas). Flow check. Pump dry job. Drop 2.31" drift. (large amount of clay across shakers at first circulation). 10:00 14:30 4.50 5,962 5,962 AF DRLlN1 TRIP LOGS POOH. (SLM no correction). 14:30 16:30 2.00 5,962 5,962 AF DRLlN1 TRIP BBHD UD Bha #2 16:30 18:30 2.00 5,962 5,962 AF EV AL1 LOG OPEN PJSM: MIU Reeves Quad Combo logs inside 3 1/2" DP & RIH on 5" HWDP to 900' and Run checks per Reeves Engineer. 18:30 22:00 3.50 5,962 5,962 AF EVAL1 LOG OPEN Continue to RIH to 5952' breaking circ @ 1927' , 3971". 22:00 23:00 1.00 5,962 5,962 AF EVAL1 LOG OPEN Circ wellbore clean @ 5.5 Bpm 1050 Psi (38 units bottoms up gas) 23:00 23:30 0.50 5,962 5,962 AF EV AL1 LOG OPEN Pull up to 5852'. 23:30 00:00 0.50 5,962 5,962 AF EV AL1 LOG OPEN Pump dn messenger & Deploy logging tools 00:00 00:30 0.50 5,962 5,962 AF EVAL1 LOG OPEN PJSM: Pump dry job. 00:30 06:00 5.50 5,962 5,962 AF EVAL1 LOG OPEN POOH logging well with Reeves Quad Combo log. BITIRUN WOB (kip) I RPM 2/2 5/10 70/70 GPM I PRESS(psl) I P BIT(pai) I 518 2,300 1,927.0 81212004 HRS I 24Hr DiST(ft) I 24Hr ROp(ftlhr) CUM HRS CUM DEPTH(ft) I CUM ROP(ftlhr) 58.89 38.50 4,035.0 104.81 I Reemer Shoe, Circ. and landing sub, 3 1/2 13.30 Drill pipe, Non-Mag Integral Blade Stabilizer, Drill Pipe (3), Lower Latch, Upper Latch, 31/213.30 Drill Pipe, Reeves Float, 3112"IF-P X 4 1/2" IF-B , 5" 49ppf HWDP (22), Cross Over PrinI8d: 91312004 11:04:19 AM e e Marathon Glacier Drilling Baker Hughes Inteq Epoch Well Services 2 24.00 M-I Drilling Fluids 19 228.00 Swaco 3 48.00 R&K Industrial 4 48.00 Reeves Wireline 1 24.00 2 48.00 1 24.00 3 54.00 LAST BOP TEST: 8/2/2004 LAST CASING TEST: 8/2/2004 NEXT BOP TEST: 8/9/2004 20.000 9.625 18.730 8.755 17.82 (psi) @ (ppg) 722 (psi) @ 9.00 (ppg) 119 1,927 119 1,575 133.00 47.00 K-55 L-80 3,060 6,330 Printed: 91312004 11:04:19 AM e e WELL NAME SUSAN DIONNE 2 SUPERVISOR Rowland Lawson / Larry Myers FIELD NAME WILDCAT-FOR UNNAMED FIELD STATElPROV Alaska CURRENT STATUS 0 &AM Bump plug on 7" CSG cement job. OPERATION COMMENTS POOH and UD Reeves DP conveyed logging tools. UD 5" HWDP.Verify hanger landing position. Rig csg tools. C/O Rams to 7". Test Rams. Run csg.Circ clean. Cmt. 124 HR PROG TMD 135.00 5,962 AUTH MD 11,094 MOC WI 907-283-1312 60.0000 COUNTY/OTHER I LAST CASING I NEXT CASING Kenai Borough 7.000 (in) @ 5,942 (ft) 4.500 (in) @ 11,094 (ft) 124 HR FORECAST Mix mud, C/O liners, P/U DP. NRI DD0309646CAPDRL I DAILY WELL COST ClIM DCLL ,",VD I 21.0 RIG NAME lit NO. GLACIER DRILLING 1 RIG PHONE I LEAKOFF 17.82 MANHRS WORKED ACCIDENT TYPE LAST SAFETY MTG BOP PSI TEST 494.00 None 8/8/2004 8/212004 ACCIDENT DESCRIPTION: SAFETY MTG TOPICS: Cementing. LAST STOP CARD AUDIT REGULATORY INSP? LAST RIG INSPECTION N 06:00 07:30 1.50 5,962 5,962 AF EVAL1 LOG OTHR Cont. POOH w/Reeves DP conveyed logging tools. 07:30 08:30 1.00 5,962 5,962 AF EVAL1 LOG OTHR UD Reeves logging tools. Clean rig floor. 08:30 10:00 1.50 5,962 5,962 AF CSGIN1 EQUIP LEQP UD 22jnts 5" HWDP. 10:00 11:00 1.00 5,962 5,962 AF CSGIN1 EQUIP RURD Pull wear bushing. P/U Vetco HangerlW assy. RIH and check position of hanger assy. POOH and UD assy. 11:00 16:30 5.50 5,962 5,962 AF CSGIN1 EQUIP RURD RlU CSG tools. CIO rams to 7" CSG rams. Test door seals to 2500psi. PJSM(while RlU hole losing 1bbl/hr). 16:30 18:00 1.50 5,962 5,962 AF CSGIN1 CSG RUN P/u Joint#1. MIU and Bakerlok shoe tract. 18:00 20:00 2.00 5,962 5,962 AF CSGIN1 CSG RUN Cont. to RIH wn" CSG to 1300'(problem getting CSG to go in hole w/cent). 20:00 20:30 0.50 5,962 5,962 AF CSGIN1 CIRC MUD Circ. CSG. spot 1 bbl EP lube outside CSG shoe(with the EP-Iube CSG ran in hole easy). 20:30 02:30 6.00 5,962 5,962 AF CSGIN1 CSG RUN Ran 144 jts. 7" 26# L-80 BTC Csg and MIU Vetco 10 3I4"X:T" TBG hanger and landing jt. and land. Shoe @ 5942' . 135k Up 48k Dn. 02:30 04:00 1.50 5,962 5,962 AF CSGIN1 CIRC MUD MIU BJ head and circ csg. 1.5 X Csg capacity @ 100 spm.192 gpm. 802 psi. PJSM. 04:00 04:30 0.50 5,962 5,962 AF CSGIN1 CEMT PRIM Pump 5bbls water ahead from BJ. Test lines 3500psi. Mix and pump 30bbls 10ppg spacer. Drop bottom plug. 04:30 05:00 0.50 5,962 5,962 AF CSGIN1 CEMT PRIM Mix and pump 250sxs Class"G" cement w/20%MPA-1, .3%FL-52, 2%SMS, .2%CD-32 and 19phs FP6L to yield 110bbls 12.5ppg slurry. TaU in w/162sxs Class"G" cement w/2%KCL, .6%FL-63, .5%EC-1, .1%ASA-301, .3%CD-32, .2%R-3 and 19phs FP-6L to yield 34bbls 15.8ppg slurry. Drop top plug. 05:00 06:00 1.00 5,962 5,962 AF CSGIN1 CEMT PRIM Kick plug out of head w/5bbls water from BJ. Displace w/219bbls 9.8ppg mud. Bump plug w/1500psi 500psi over displacement pressure(spacer and 20bbls cement to surface) CIP@05:30hrs. Check floats held OK. RID BJ cement head. Printed: 9/312004 11 :04:23 AM e e o I Reemer Shoe, Circ. and landing sub, 3 1/2 13.30 Drill pipe, Non-Mag Integral Blade Stabilizer, Drill Pipe (3), Lower Latch, Upper Latch, 3 1/2 13.30 Drill Pipe, Reeves Float, 3 1/2" IF-P X 4 1/2" IF-B , 5" 49ppf HWDP (22), Cross Over Marathon Glacier Drilling Baker Hughes Inteq Epoch Well Services M-I Drilling Fluids 2 24.00 R&K Industrial 19 228.00 BJ Services 3 48.00 Weatherford 4 48.00 ABB Vetco Gray 1 24.00 4 48.00 4 32.00 2 36.00 1 6.00 LAST BOP TEST: 8/212004 LAST CASING TEST: 8/212004 NEXT BOP TEST: 8/912004 20.000 9.625 7.000 18.730 8.755 6.276 17.82 17.82 (psi) @ (ppg) 722 (psi) @ 9.00 (ppg) 722 (psi) @ 9.00 (ppg) 119 1,927 5,942 119 1,575 3,420 133.00 47.00 26.00 K-55 L-BO L-BO 3,060 6,330 7,240 Printed: 91312004 11 :04:23 IW e e 24 HR PROG TMD 5,962 AUTH MD 11,094 MOCWI 907-283-1312 60.0000 COUNTY/OTHER I LAST CASING I NEXT CASING Kenai Borough 7.000 (in) @ 5,942 (ft) 4.500 (in) @ 11,094 (ft) 124 HR FORECAST P/U 4" DP & Std Back, Test Csg. RIH Drill out, Run LOT WELL NAME SUSAN DIONNE 2 SUPERVISOR Rowland Lawson / Larry Myers FIELD NAME WILDCAT-FOR UNNAMED FIELD STATElPROV Alaska CURRENT STATUS 0 6AM Pick up 4" DP OPERATION COMMENTS Flush stack. Install and test 7" packoff. Test BOPE. Clean pits. Rig floor DP tools, Pick up 4" DP & Std back, 21.0 RIG NAME & NO. GLACIER DRILLING 1 RIG PHONE NRI DD0309646CAPDRL I DAILY W¡::II r.n~T r.IIU W¡::LL COST LEAKOFF 17.82 C/O pump liners. Repair top drive, MANHRS WORKED I ACCIDENT TYPE 494.00 None ACCIDENT DESCRIPTION: SAFETY MTG TOPICS: BOP PSI TEST 8/8/2004 LAST STOP CARD AUDIT REGULATORY INSP? N I LAST RIG INSPECTION LAST SAFETY MTG 8/9/2004 06:00 06:30 06:30 07:00 07:00 10:30 0.50 5,962 5,962 AF CSGIN1 CEMT PRIM 0.50 5,962 5,962 AF CSGIN1 EQUIP RURD 3.50 5,962 5,962 CSGIN1 TEST BOP 10:30 14:30 4.00 5,962 5,962 AF CSGIN1 TEST BOP 14:30 20:00 5.50 5,962 5,962 AF CSGIN1 RIG RCNT 20:00 06:00 10.00 5,962 5,962 AF CSGIN1 TRIP PUDP Clean rig floor. Flush stack. Install Vetco 11" X 7" packoff. Test P.O. to 3500psi/15min. C/O top rams to 2 7/8" X 5 1/2" variable rams. LiD long bales. P/L 4" test joint and set test plug. Begin empty pits and CIO pump liners. Test IBOP, TIW, Upper and lower kelly valves to 250psi/2500psi(upper kelly valve failed). C/O kelly valves and retest OK. Test upper variable rams, lower pipe rams, blind rams, and annular to 250/2500psi. Test CMV 1-12, kill line check, kill line valve, Choke HCR and manual choke line valve to 250psi/2500psi. Perform accumulator test. Pull test plug and install wear bushing. Cont. to empty and clean pits and C/O pump liners. While cont. to clean pits and C/O liners weld cracks in the extenders for TD.C/O Valve on Top Drive, Test gas alarms, RIU bales, Elevators, CIO oil cooler #1 pump mtr, Check all pop offs on pump, mixmud. PIU 4" DP & stand back in derricK. Marathon 2 24.00 R&K Industrial 4 48.00 Glacier Drilling 19 228.00 BJ Services 4 32.00 Baker Hughes Inteq 3 48.00 Weatherford 2 36.00 Epoch Well Services 4 48.00 ABB Vetco Gray 1 6.00 M·I Drilling Fluids 1 24.00 Printed: 91312004 11 :04:25 AM e e LAST BOP TEST: 8/8/2004 LAST CASING TEST: 8/212004 NEXT BOP TEST: 8/15/2004 20.000 18.730 (psi) @ (ppg) 119 119 133.00 K-55 3,060 9.625 8.755 17.82 722 (psi) @ 9.00 (ppg) 1,927 1,575 47.00 L-BO 6,330 7.000 6.276 17.82 722 (psi) @ 9.00 (ppg) 5,942 3,420 26.00 L-BO 7,240 Printed: 91312004 11 :04:25 AM e e WEll NAME SUSAN DIONNE 2 SUPERVISOR Rowland Lawson llarry Myers FIELD NAME WILDCAT-FOR UNNAMED FIELD STATElPROV · Alaska CURRENT STATUS 0 6AM Drill ahead @ 6082'. OPERATION COMMENTS P/U 4" DP. Teãt 7" CSG. P/U bit and BHA. RIH. Drill shoe tract & clean out rathole, Drilled F/5962' to 5982'. CBU, Chg out mud, LOT, Drilled F/5982' to 6082'. 24 HR PROG TMD 120.0 6,082 AUTH MD 11,094 MOO WI 907-283-1312 60.??oo COUNTYIOTHER I lAST CASING Kenai Borough 7.000 (in) @ 5,942 (ft) 124 HR FORECAST Dir. drill 7" hole. ð A Dftala£! ,"""C!'T 21.0 RIG NAME" NO. GLACIER DRILLING 1 RIG PHONE NRI DD0309646CAPDRL I. DAILY WEll COST 1 NEXT CASING 4.500 (in) @ 11 ,094 (ft) CUM WELL COST I LEAKOFF 18.93 MANHRS WORKED I ACCIDENT TYPE 470.00 None ACCIDENT DESCRIPTION: SAFETYMTGTOPlCS: P/U DP. LAST SAFETY MTG 8110/2004 BOP PSI TEST 81812004 lAST STOm t\1F Ðrn117\~ lAST RIG INSPECTION 06:00 07:30 1.50 5,962 5,962 AF CSGIN1 TRIP PUDP Cant. to PIU 4" DP and rack back in derrick(totaI184jnts). 07:30 08:30 1.00 5,962 5,962 AF CSGIN1 TEST CSG Test 7" CSG to 2500psi/30min. 08:30 12:00 3.50 5,962 5,962 AF CSGIN1 TRIP BBHD PIU bit and BHA. Scribe motor and MWD. Test motor and MWD. 12:00 13:30 1.50 5,962 5,962 AF CSGIN1 TRIP BBHD P/U 25-3.5" HWDP and jars as RIH. 13:30 16:30 3.00 5,962 5,962 AF CSGIN1 TRIP BHA Cont. RIH w/4" DP. Tag FC@5860'. 16:30 17:30 1.00 5,962 5,962 AF CSGIN1 DRILL CEMT Drill float collar and shoe track to 5942'. Clean old hole to 5962', 17:30 18:00 0.50 5,962 5,982 AF CSGIN1 DRILL DOHD Dr"1 5962' to 5982'(ART =.4 hrs). 18:00 20:00 2.00 5,982 5,982 AF CSGIN1 CIRC MUD CBU, Mix & pump 25 bbl. spacer and follow with 9.0 ppg. flow pro to displace well , and circulate to verify wt in and out. 20:00 20:30 0.50 5,982 5,982 AF CSGIN1 TEST LOT Run LOT (9.0 ppg. mw +1765 psi applied @ 3420 TVD. 5942' MD csg shoe = 18.9 PPG. EMW). 20:30 06:00 9.50 5,982 6,082 AF DRLPR DRILL DOHD Dir Drill F/5982' to 6082'(ART=1.2hrs AST=4.7hrs)(very difficult to slide, added EP-Iube and lubtex. Will bring cone. up to 4%). BITIRUNI WOB (kip) I RPM 3/3 I 3/5 60/60 GPM I PRESS(psi) I P BIT(psl) 300 1,550 241 5,962.0 819/2004 HRS 24Hr DIST(ft) 124Hf ROP(ftlhf) CUM HRS\CUM DEPTH(ft)\CUM ROP(ftlhr) 6.30 120.0 19.05 6.30 120.0 19.05 20,000 80,000 65,000 65,000 5,000 14,000 6.30 43/4" HTC PDC Bit, 411/16" X 7" RWD ,43/4" Mach 1XU1.4AKO ,45/8" NM Comp DP ,45/8" NM Stab, MWD, Hang-Off Sub, 4 3/4" NM Drill collar, 45/8" NM Comp DP , 3 1/2" 24PPF HWDP (4), 4 3/4" Drilling JarslHyd bumper sub dn ,31/2" 24PPF HWDP (21), 3 1/2"IF-P X HT-38-B ,4" 14ppf S-135 HT-38 DP 1 OILWELL 2 OILWELL 8.000 8.000 4.000 80 4.000 80 98.18 98.18 1,550 1,550 294.54 294.54 60 60 400 400 Printed: 91312004 11 :04:26 AM e e Marathon Glacier Drilling Baker Hughes Inteq Epoch Well Services 2 24.00 M-I DrUling Fluids 20 252.00 R&K Industrial 3 72.00 Weaver Brothers (WBI) 4 48.00 1 24.00 4 48.00 1 2.00 LAST BOP TEST: 81812004 LAST CASING TEST: 819/2004 NEXT BOP TEST: 8115/2004 20.000 9.625 7.000 18.730 8.755 6.276 17.82 18.93 (psi) @ (ppg) 722 (psi) @ 9.00 (ppg) 1,765 (psi) @ 9.00 (ppg) 119 1,927 5,942 119 1,575 3,420 133.00 47.00 26.00 K-55 L-80 L-80 3,060 6,330 7,240 Printed: 91312004 11 :04:26 NIt e e WELL NAME SUSAN DIONNE 2 SUPERVISOR ROwland Lawson / Larry Myers FIELD NAME WILDCAT-FOR UNNAMED FIELD STATElPROV Alaska CURRENT STATUS" SAM Drill 7" hole dire. OPERATION COMMENTS Drill F/6082' to 6474' 24 HR PROG TMD 388.0 6,470 AUTH MD 11 ,094 Me)(; WI 907-283-1312 60.0000 COUNTYIOTHER I LAST CASING I NEXT CASING Kenai Borough 7.000 (in) @ 5,942 (ft) 4.500 (in) @ 11,094 (ft) 124 HR FORECAST Drill 7" hole dire. , Wiper trip, Drill 7" hole dirc. 21.0 RIG NAME" NO. GLACIER DRILLING 1 RIG PHONE ..... """&lDC!! t'n~ NRI DD0309646CAPDRL I DAILY WELL CO~T emu WEll COST I LEAKOFF 18.93 MANHRS WORKED ACCIDENT TYPE I LAST SAFETY MTG 470.00 None 8/11/2004 ACCIDENT DESCRIPTION: SAFETY MTG TOPICS: BOP PSI TEST 8/8/2004 LAST STOP CARD AUDIT I ~EGULATORY INSP? LAST RIG INSPECTION BITIRUN WOB (kip) I RPM 3/3 2/4 70170 GPM I PRESS(psi) P BIT(psi) 316 1,800 5,962.0 8/9/2004 HRS 24Hr DIST(ft) 24Hr ROP{ftlhr) CUM HRSICUM DEPTH{ft) CUM ROP(ftlhr) 16.10 388.0 24.09 22.40 508.0 22.68 6,000 80,000 70,000 70,000 5,000 14,000 4314" HTC PDC Bit, 411/16" X 7" RWD ,4314" Mach 1XL/1.4AKO, 4 5/8" NM Comp DP, 45/8" NM Stab, MWD, Hang-Off Sub, 4 314" NM Drill collar, 4 5/8" NM Camp DP , 3 1/2" 24PPF HWDP (4), 4314" Drilling Jars/Hyd bumper sub dn , 3 1/2" 24PPF HWDP (21), 3 112" IF-P X HT-38-B , 4' 14ppf S-135 HT-38 DP 1 OILWELL 2 OILWELL 3 OILWELL 8.000 8.000 8.000 4.000 4.000 4.000 85 85 85 105.43 105.43 105.43 1,800 1,800 1,800 316.29 316.29 316.29 60 60 60 480 480 480 6,029.0 47.00 326.60 3,477.94 4,493.30 3,936.37 -2,219.67 2.70 6,278.0 40.70 321.10 3,658.33 4,664.62 4,076.48 -2,318.28 3.04 6,091.0 45.70 326.90 3,520.73 4,538.12 3,973.89 -2,244.27 2.13 6,340.0 39.60 320.00 3,705.72 4,704.50 4,107.35 -2,343.68 2.11 6,154.0 42.70 325.10 3,565.89 4,582.02 4,010.30 -2,268.81 5.16 6,402.0 37.40 318.50 3,754.244,742.94 4,136.59 -2,368.86 3.85 6,216.0 41.90 323.30 3,611.754,623.744,044.15 -2,293.21 2.34 Marathon Glacier Drilling Baker Hughes Inteq 2 24.00 Epoch Well Services 20 252.00 Mal Drilling Fluids 3 72.00 R&K Industrial 4 1 4 48.00 24.00 48.00 Printed: 91312004 11 :04:28 AM e e LAST BOP TEST: 8/8/2004 LAST CASING TEST: 8/912004 NEXT BOP TEST: 8/15/2004 20.000 18.730 (psi) @ (ppg) 119 119 133.00 K-55 3,060 9.625 8.755 17.82 722 (psi) @ 9.00 (ppg) 1,927 1,575 47.00 L-80 6,330 7.000 6.276 18.93 1 ,765 (psi) @ 9.00 (ppg) 5,942 3,420 26.00 L-BO 7,240 Printed: 91312004 11 :04:28 IW e e WELL NAME SUSAN DIONNE 2 SUPERVISOR Larry Myers FIELD NAME WILDCAT-FOR UNNAMED FIELD STATElPROV Alaska CURRENT STATUS 0 sAM Dirc Drill 7" Hole OPERATION COMMENTS Drill F/6470' to 6533'.CBU,Wiper trip to shoe,Service Rig, TIH, Drill F/6533' to 6798' 24 HR PROG TMD 328.0 6,798 AUTH MD 11 ,094 MOCWI 907-283-1312 60.0000 COUNTY/OTHER I LAST CASING Kenai Borough 7.000 (in) @ 5,942 (ft) 124 HR FORECAST Dire Drill 7" Hole 21.0 RIG NAME" NO. GLACIER DRILLING 1 RIG PHONE NRI DD0309646CAPDRL I DAILY WELL COST CUM WELL COST I NEXT CASING 4.500 (in) @ 11,094 (ft) I LEAKOFF 18.93 MANHRS WORKED 444.00 ACCIDENT DESCRIPTION: SAFETY MTG TOPICS: PSI TEST LAST STOP CARD AUDIT LAST RIG INSPECTION 06:00 10:00 4.00 6,470 6,533 AF DRLPR DRILL DOHD Dir drill 7" hole F/6470' to 6533' (ART =.3 hrs AST =2.40 hr). 10:00 10:30 0.50 6,533 6,533 AF DRLPR CIRC CLN CBU 10:30 11:30 1.00 6,533 6,533 AF DRLPR TRIP WTRP TOH to 7" shoe (no problems). 11:30 12:00 0.50 6,533 6,533 AF DRLPR RIG SERV Service rig. 12:00 12:30 0.50 6,533 6,533 AF DRLPR TRIP WTRP TIH to 6533' (no fill). - 12:30 06:00 .17.50 6,533 6,798 AF DRLPR DRILL DOHD Dire drill 7" hole F/6533' to 6798' (AST =11.5 hrs ART =1.4 hrs). 8 BIT/RUNI WOB (kip) I RPM 3/3 2/8 90/90 GPM I PRESS(psl) I P BIT(psi) 316 2,010 273 5,962.0 81912004 HRS 24Hr DIST(ft) 124Hr ROP(ftlhr) CUM HRSICUM DEPTH(ft) CUM ROp(ftlhr) 15.60 328.0 21.03 38.00 836.0 22.00 6,000 85,000 70,000 70,000 5,000 /4,000 4 3/4" HTC PDC Bit, 4 11/16" X 7" RWD ,43/4" Mach 1XL/1.4AKO , 4 5/8" NM Comp DP , 4 5/8" NM Stab, MWD , Hang-Off Sub, 43/4" NM Drill collar, 4 5/8" NM Camp DP , 3112" 24PPF HWDP (4), 4314" Drilling JarslHyd bumper sub dn ,31/2" 24PPF HWDP (21), 3 1/2" IF-P X HT-38-B , 4" 14ppf S-135 HT-38 DP 1 OILWELL 2 OIL WELL 3 OILWELL 8.000 8.000 8.000 4.000 85 4.000 85 4.000 85 105.43 105.43 105.43 2,046 2,046 2,046 316.29 316.29 316.29 60 60 60 510 510 510 6,464.0 38.10 6,526.0 34.90 6,589.0 33.70 317.50 3,803.924,779.80 4,164.16 -2,393.68 2.31 316.60 3,854.394,815.50 4,190.52 -2,418.20 2.11 314.30 3,906.44 4,850.56 4,215.82 -2,443.10 2.80 6,651.0 32.20 6,713.0 30.20 312.30 3,958.47 4,883.64 4,238.95 -2,467.63 2.99 310.50 4,011.50 4,914.92 4,260.20 -2,491.71 3.56 Printed: 91312004 11 :04:29 AM e e Marathon Glacier Drilling Baker Hughes Inteq 2 24.00 Epoch Well Services 20 252.00 M-I Drilling Fluids 3 72.00 R&K Industrial 4 48.00 1 24.00 1 24.00 LAST BOP TEST: 8/8/2004 LAST CASING TEST: 8/9/2004 NEXT BOP TEST: 8/1512004 20.000 9.625 7.000 18.730 8.755 6.276 17.82 18.93 (psi) @ (ppg) 722 (psi) @ 9.00 (ppg) 1,765 (psi) @ 9.00 (ppg) 119 1,927 5,942 119 1,575 3,420 133.00 47.00 26.00 K-55 L-BO L-BO 3,060 6,330 7,240 Printed: 91312004 11 :04:29 AM e e WELL NAME SUSAN DIONNE 2 SUPERVISOR Larry Myers FIELD NAME WILDCAT-FOR UNNAMED FIELD STATElPROV Alaska CURRENT STATUS lit 6AM Drill 7" hole dirc OPERATION COMMENTS Drilled F/6798' to 7369' 24 HR PROG TMD 571.0 7,369 AUTH MD 11,094 MOC WI 907-283-1312 60.0000 COUNTY/OTHER I LAST CASING I NEXT CASING Kenai Borough 7.000 (in) @ 5,942 (ft) 4.500 (in) @ 11,094 (ft) 124 HR FORECAST Drill 7" hole dire. Wiper trip. Drill 7" hole dirc. 21.0 RIG NAME" NO. GLACIER DRILLING 1 RIG PHONE NRI DD0309646CAPDRL I nAil v w", I I".n<rr CUIo WI:LL I.V~ I I I LEAKOFF 18.93 MANHRS WORKED I ACCIDENT TYPE LAST SAFETY MTG 468.00 None 8/13/2004 ACCIDENT DESCRIPTION: SAFETY MTG TOPICS: Personal Hygeine BOP PSI TEST 8/8/2004 LAST STOP CARD AUDIT REGULATORY INSP? N LAST RIG INSPECTION Dire Drill 7" hole F/6798 to 7369' (ART= 5.0 hrs. AST=10.7 hrs). 10 BIT/RUN WOB (kip) I RPM 3/3 1 13 75 175 GPM I PRESS(psi) I P BIT(pai) 313 2,100 5,962.0 8/912004 HRS I 24Hr DIST(ft} I 24Hr ROp(ftlhr)!CUM HRS CUM DEPTH(ft) CUM ROp(ftlhr) 15.70 571.0 36.37 53.70 1,407.0 26.20 6,000 110,000 95,000 5,000/4,000 53 53.70 53 53 43/4" HTC PDC Bit, 4 11/16" X 7" RWD ,43/4" Mach 1XU1.4AKO , 4 5/8" NM Comp DP ,45/8" NM Stab, MWD , Hang-Off Sub, 43/4" NM Drill collar, 4 5/8" NM Comp DP, 31/2" 24PPF HWDP (4), 4 3/4" Drilling Jars/Hyd bumper sub dn , 3 1/2" 24PPF HWDP (21), 3 1/2" IF-P X HT-38-B , 4" 14ppf 8-135 HT-38 DP 1 OILWELL 8.000 4.000 85 104.32 2,100 312.96 60 550 2 OILWELL 8.000 4.000 85 104.32 2,100 312.96 60 550 3 OILWELL 8.000 4.000 85 104.32 2,100 312.96 60 550 594 AVG. CONN: AVG. TRIP: AVG. BKGRD: 10 MAX. CONN: MAX. TRIP: MAX. DRL: 594 6,775.0 28.80 309.30 4,065.46 4,944.47 4,279.79 -2,515.12 2.45 7,086.0 26.10 306.80 4,343.68 5,078.08 4,366.52 -2,623.56 0.91 6,837.0 27.10 309.30 4,120.224,972.524,298.19 -2,537.61 2.74 7,147.0 26.20 307.20 4,398.44 5,103.72 4,382.70 -2,645.03 0.33 6,899.0 27.20 309.80 4,175.39 4,999.86 4,316.21 -2,559.42 0.40 7,210.0 24.30 310.60 4,455.42 5,129.59 4,399.54 -2,665.95 3.79 6,961.0 25.30 308.60 4,231.00 5.026.32 4,333.55 ·2,580.67 3.18 7,272.0 25.10 309.30 4,511.745,154.674,416.17 -2,685.82 1.56 7,024.0 25.60 307.40 4,287.88 5,052.28 4,350.21 -2,602.00 0.95 Printed: 91312004 11 :04:31 AM e e Marathon Glacier Drilling Baker Hughes Inteq Epoch Well Services 2 24.00 M-I Drilling Fluids 20 252.00 R&K Industrial 3 72.00 Weaver Brothers (WBI) 4 48.00 1 24.00 1 24.00 2 24.00 BOP TEST: 8/8/2004 LAST CASING TEST: 8/9/2004 NEXT BOP TEST: 8/15/2004 20.000 9.625 7.000 18.730 8.755 6.276 17.82 18.93 (psi) @ (ppg) 722 (psi) @ 9.00 (ppg) 1,765 (psi) @ 9.00 (ppg) 119 1,927 5,942 119 1,575 3,420 133.00 47.00 26.00 K-55 L-80 L-80 3,060 6,330 7,240 Printed: 91312004 11 :04:31/W e e WELL NAME SUSAN DIONNE 2 SUPERVISOR Larry Myers FIELD NAME WILDCAT-FOR UNNAMED FIELD STATElPROV Alaska CURRENT STATUS 0 6AM Dirc Drill 7" hole OPERATION COMMENTS Drill F/7369' to 7465'. CBU. Wiper Trip.Repair Hyd. hose,TIH, Drill F/7465' to 8157' 24 HR PROG TMD 788.0 8,157 AUTH MD 11,094 MOO WI 907-283-1312 60.0000 COUNTYIOTHER I LAST CASING I NEXT CASING Kenai Borough 7.000 (in) @ 5,942 (ft) 4.500 (in) @ 11,094 (ft) 124 HR FORECAST Dirc Drill 7" hole. Wiper trip, Dire Drill 7" hole ft. """'DQ ~"-qy 21.0 RIG NAME. NO. GLACIER DRILLING 1 RIG PHONE NRI DD0309646CAPDRL I nAil v WO:" t'1\QT r."U WI'LL COST I LEAKOFF 18.93 MANHRS WORKED ACCIDENT TYPE LAST SAFETY MTG BOP PSI TEST 444.00 None 8114/2004 81812004 ACCIDENT DESCRIPTION: SAFETY MTG TOPICS: LAST STOP CARD AUDIT REGULATORY INSP? LAST RIG INSPECTION N 06:00 08:30 2.50 7,369 7,465 AF DRLPR DRilL DOHD Dirc Drill 7" Hole F/7369' to 7465' (ART= 1.5 hrs AST=.7). 08:30 09:30 1.00 7,465 7,465 AF DRLPR CIRC CLN CBU , pump dry job 09:30 10:00 0.50 7,465 7,465 AF DRLPR TRIP WTRP POOH to 7275' (kick drill ) 10:00 11:00 1.00 7,465 7,465 TA DRLPR RIG RCOM SHST Repair Hydraulic hose on dwks 11:00 12:00 1.00 7,465 7.465 AF DRLPR TRIP WTRP Continue to POOH to 6533' 15 stds 12:00 12:30 0.50 7,465 7,465 AF DRLPR TRIP WTRP TIH. Wash last std to bottom (10' Fill) 12:30 06:00 17.50 7,465 8,157 AF DRLPR DRill DOHD Dire Drill T' hole F/7465' to 815T (ART=9.5 hrs. AST=2.9 hrs). SIT/RUN WOS (kip) I RPM 3/3 2/ 5 75/75 GPM PRESS(psi) I P SIT(psi) 316 2.200 5.962.0 81912004 HRS I 24Hr DIST(ft) 24Hr ROP(ftlhr) CUM HRS CUM DEPTH(ft) CUM ROp(ftlhr) 14.20 788.0 55.49 67.90 2,195.0 32.33 6,000 110,000 85,000 85,000 5,000 14,000 68 68.00 68 68 4314· HTC PDC Bit, 4 11/16· X 7" RWD ,4314" Mach 1XLJ1.4AKO, 4518" NM Camp DP ,4518" NM Stab, MWD. Hang-Off Sub. 4 314" NM Drill collar, 4518" NM Comp DP, 31/2" 24PPF HWDP (4), 4314" Drilling JarslHyd bumper sub dn . 3 1/2· 24PPF HWDP (21). 3 1/2"IF-P X HT-38-B , 4" 14ppf S-135 HT-38 DP 1 OILWELL 8.000 4.000 85 105.43 2.200 316.29 60 510 2 OILWELL 8.000 4.000 85 105.43 2,200 316.29 60 510 3 OILWELl 8.000 4.000 85 105.43 2,200 316.29 60 510 473 AVG. CONN: AVG. TRIP: AVG. SKGRD: 8 MAX. CONN: MAX. TRIP: MAX. DRL: 10 Printed: 11/3I2OO4 11 :04:32 AM e e 7,335.0 25.20 309.30 4,568.77 5,180.51 4,433.13 -2,706.54 0.16 7,772.0 25.60 305.30 4,966.85 5,353.33 4,544.17 -2,848.40 1.10 7,397.0 23.30 310.30 4,625.30 5,205.154,449.42 -2,726.10 3.14 7,834.0 25.80 305.80 5,022.72 5,378.77 4,559.81 -2,870.28 0.48 7,459.0 23.70 309.30 4,682.165,229.064,465.25 -2,745.10 0.91 7,896.0 25.70 304.60 5,078.57 5,404.20 4,575.33 -2,892.28 0.86 7,522.0 24.10 308.80 4,739.75 5,253.67 4,481.33 -2,764.92 0.71 7,958.0 25.80 303.80 5,134.41 5,429.46 4,590.47 -2,914.56 0.58 7,585.0 24.40 307.70 4,797.20 5,278.51 4,497.34 -2,785.24 0.86 8,022.0 25.40 303.20 5,192.135,455.294,605.74 -2,937.62 0.74 7,648.0 24.60 307.10 4,854.52 5,303.49 4,513.21 -2,805.99 0.51 8,084.0 25.80 302.80 5,248.04 5,480.22 4,620.33 -2,960.09 0.70 7,709.0 25.00 306.10 4,909.90 5,327.84 4,528.47 -2,826.54 0.95 Marathon Glacier Drilling Baker Hughes Inteq Epoch Well Services service tech service tech 2 24.00 M·I Drilling Fluids 20 252.00 R&K Industrial 2 48.00 Swaco 4 48.00 engineer driver tech 24.00 24.00 24.00 LAST BOP TeST: 81812004 LAST CASING TEST: 81912004 NEXT BOP TEST: 8115/2004 20.000 9.625 7.000 18.730 8.755 6.276 17.82 18.93 (psi) @ (ppg) 722 (psi) @ 9.00 (ppg) 1,765 (psi) @ 9.00 (ppg) 119 1,927 5,942 119 1,575 3,420 133.00 47.00 26.00 K-55 L-BO L·BO 3,060 6,330 7,240 Printed: 91312004 11 :04:32 NIt e e WELL NAME SUSAN DIONNE 2 SUPERVISOR Larry Myers AELD NAME WILDCAT-FOR UNNAMED FIELD STATElPROV Alaska CURRENT STATUS 41 6AM Directionally drill 7" hole OPERATION COMMENTS Drill F/8157' to 8837' 24 HR PROG TMD 680.0 8,837 AUTH MD 11 ,094 MOCWI 907-283-1312 60.0000 COUNTYIOTHER I LAST CASING I NEXT CASING Kenai Borough 7.000 (in) @ 5,942 (ft) 4.500 (in) @ 11,094 (ft) 124 HR FORECAST Dire drill 7" hole, Wiper trip, Dire drill 7" hole 21.0 RIG NAME" NO. GLACIER DRILLING 1 RIG PHONE ~AQNlAQ. mST NRI DD0309646CAPDRL I DAILY WELL COST CUM WELL COST I LEAKOFF 18.93 MANHRS WORKED ACCIDENT TYPE LAST SAFETY MTG 444.00 None 8/15/2004 ACCIDENT DESCRIPTION: SAFETY MTG TOPICS: IBOP PSI TEST 8/8/2004 LAST STOP CARD AUDIT I ~EGULATORY INSP? LAST RIG INSPECTION 06:00 06:00 24.00 8,157 8,837 AF DRLPR DRILL DOHD Directionally drill 7" hole F/8157' to 8837' ART=9.3 hrs AST=8.5 hrs. BIT/RUN WOB (kip) 1 RPM 31 3 2 I 5 75 175 GPM I PRESS(psi) I P BIT(psi) 316 2,200 HRS I 24Hr DIST(ft) 24Hr Rop(ftlhr)ICUM HRS CUM DEPTH(ft) CUM ROp(ftlhr) 17.80 680.0 38.20 85.70 2,875.0 33.55 6,000 125,000 80,000 80,000 5,000 14,000 85 85.00 85 85 4 314" HTC PDC Bit, 4 11/16" X 7" RWD ,4 314" Mach 1XU1.4AKO , 4 518" NM Comp DP , 4 518" NM Stab, MWD , Hang-Off Sub, 4314" NM Drill collar, 4518" NM Camp DP , 3 112" 24PPF HWDP (4), 4314" Drilling JarslHyd bumper sub dn , 3 1/2" 24PPF HWDP (21), 3 112" IF-P X HT-38-B ,4" 14ppf S-135 HT-38 DP 1 OILWELL 8.000 4.000 85 105.43 2.200 316.29 80 780 2 OILWELL 8.000 4.000 85 105.43 2.200 316.29 60 780 3 OILWELL 8.000 4.000 85 105.43 2,200 316.29 60 780 618 AVG. CONN: AVG. TRIP: AVG. BKGRD: 20 MAX. CONN: MAX. TRIP: MAX. DRL: 20 8,147.0 25.80 302.70 5,304.76 5,505.69 4,635.16 -2,983.15 0.07 8,459.0 21.60 310.90 5,591.77 5,822.08 4,708.35 -3,080.93 1.19 8,211.0 23.70 306.10 5,362.88 5,530.84 4,650.26 -3,005.27 3.96 8,521.0 22.00 310.70 5,649.34 5,644.46 4,723.39 -3,098.36 0.66 8,272.0 23.20 305.80 5,418.84 5,553.86 4,664.52 -3,024.92 0.84 8,583.0 22.50 309.90 5,706.725,667.22 4,738.57 -3,116.26 0.94 8,335.0 22.70 306.70 5,476.865,577.194,679.04 -3,044.73 0.97 8,645.0 22.30 308.60 5,764.04 5,690.02 4,753.52 -3,134.56 0.86 8,396.0 22.00 309.20 5,533.27 5,599.43 4,693.30 -3.063.02 1.94 8,707.0 22.40 307.80 5,821.38 5,712.65 4,768.10 -3,153.09 0.52 Printed: 9t3I2OO4 11 :04:33 AM e e Marathon Glacier Drilling Baker Hughes Inteq Epoch Well Services service tech service tech 2 24.00 M-I Drilling Fluids 20 252.00 R&K Industrial 2 48.00 Swaco 4 48.00 engineer driver tech 24.00 24.00 24.00 LAST BOP TEST: 8/8/2004 LAST CASING TEST: 8/912004 NEXT BOP TEST: 8/1512004 20.000 9.625 7.000 18.730 8.755 6.276 17.82 18.93 (psi) 0 (ppg) 722 (psi) @ 9.00 (ppg) 1,765 (psi) @ 9.00 (ppg) 119 1,927 5,942 119 1,575 3,420 133.00 47.00 26.00 K-55 L·BO L·BO 3,060 6,330 7,240 Printed: 91312004 11 :04:33 NIo e e WELL NAME SUSAN DIONNE 2 SUPERVISOR Larry Myers FIELD NAME WILDCAT-FOR UNNAMED FIELD STATElPROV Alaska CURRENT STATUS" 6AM Dirc drill 7" hole OPERATION COMMENTS Drill F/8837' to 9515' 24 HR PROG TMD 678.0 9,515 AUTH MD 11,094 MOC WI 907-283-1312 60.0000 COUNTYIOTHER I LAST CASING Kenai Borough 7.000 (in) @ 5,942 (ft) 124 HR FORECAST Dirc drill 7" hole, NRI DD0309646CAPDRL I ~AlL: W~\I "n~ I NEXT CASING 4.500 (in) @ 11,094 (ft) I""IIUWI:II ~tu:r I 21.0 RIG NAME. NO. GLACIER DRILLING 1 RIG PHONE I LEAKOFF 18.93 MANHRS WORKED I ACCIDENT TYPE 444.00 None ACCIDENT DESCRIPTION: SAFETY MTG TOPICS: LAST SAFETY MTG 8/15/2004 ¡SOP PSI TEST 8/8/2004 LAST STOP CARD AUDIT REGULATORY INSP? N LAST RIG INSPECTION directionally drill 7" hole F/8837' to 9515' ART =11.3hrs AST =5.5hrs COMMENTS .AOGC gave extension to BOP test ,Lew Grimaldi IJeff Jones. 12 RPM 70/70 GPM I PRESS(psi) I P BIT(psi) I 316 [ 2,550 5,962.0 8/912004 HRS I 24Hr DIST(ft) 124Hr ROP(ftlhr)ICUM HRSICUM DEPTH(ft) CUM ROP(ftlhr) 16.80 678.0 40.36 102.50 3,553.0 34.66 6,000 135,000 100,000 100,000 I 102 102.00 102 102 43/4" HTC PDC Bit, 411/16" X 7" RWD ,43/4" Mach 1XlJ1.4AKO, 4 518" NM Comp DP ,4518" NM Stab, MWD, Hang-Off Sub. 4 3/4" NM Drill collar, 4 518" NM Comp DP , 3 1/2" 24PPF HWDP (4), 4314" Drilling JarsIHyd bumper sub dn , 3 1/2" 24PPF HWDP (21), 3 1/2" IF·P X HT-38-B ,4" 14ppf S-135 HT-38 DP 1 OILWELL 8.000 4.000 85 105.43 2,550 316.29 60 840 2 OILWELL 8.000 4.000 85 105.43 2,550 316.29 60 840 3 OILWELL 8.000 4.000 85 105.43 2,550 316.29 60 840 618 AVG. TRIP: 60 AVG. BKGRD: 15 MAX. TRIP: 60 MAX. DRL: 15 8,769.0 8,830.0 8,892.0 8,955.0 22.90 23.30 23.50 23.20 307.50 5,878.605,735.50 4,782.68 -3,171.99 0.83 306.10 5,934.71 5,758.31 4,797.02 -3,191.15 1.11 305.30 5.991.61 5,781.624.811.39 -3.211.15 0.61 307.20 6.049.45 5,805.34 4,826.15 -3,231.29 1.29 9,017.0 9,081.0 9,143.0 9.204.0 23.40 23.30 23.70 24.00 307.20 6,106.40 5,828.76 4,840.97 -3,250.82 0.32 306.80 6,165.155,852.954,856.24 -3.271.08 0.29 305.90 6.222.01 5,876.45 4,870.89 -3.290.99 0.87 306.40 6,277.805,899.874,885.44 -3.310.91 0.59 Printed: 91312004 11 :04:35 AM e e Marathon Glacier Drilling Baker Hughes Inteq Epoch Well Services service tech service tech 1 24.00 M-I Drilling Fluids 20 252.00 R&K Industrial 2 48.00 Swaco 4 48.00 engineer driver tech 1 24.00 2 24.00 2 24.00 LAST BOP TEST: 8/8/2004 LAST CASING TEST: 8/912004 NEXT BOP TEST: 8/15/2004 20.000 9.625 7.000 18.730 8.755 6.276 17.82 18.93 (psi) @ (ppg) 722 (psi) @ 9.00 (ppg) 1,765 (psi) @ 9.00 (ppg) 119 1,927 5,942 119 1,575 3,420 133.00 47.00 26.00 K-55 L-BO L-BO 3,060 6,330 7,240 Printed: 91312004 11 :04:35 AM e e WELL NAME SUSAN DIONNE 2 SUPERVISOR Larry Myers RELD NAME WILDCAT-FOR UNNAMED FIELD STATElPROV Alaska CURRENT STATUS 0 6AM Circ ISet MWD computer OPERATION COMMENTS Drilled F/9515' to 9585',CBU X2, POOH, Test bop's, MIU Bha, TIH to shoe, Cut drlg line, TIH, Circ 24 HR PROG TMD 70.0 9,585 AUTH MD 11,094 MOC WI 907-283-1312 60.0000 COUNTYIOTHER I LAST CASING Kenai Borough 7.000 (in) @ 5,942 (ft) 124 HR FORECAST Directionally drill 7" hole GL 21.0 135.00 RIG NAME & NO. GLACIER DRILLING 1 RIG PHONE SAP-,aC! mgr NRI DD0309646CAPDRL I DAILY WELL COST CUM n~.... COST I NEXT CASING I LI:AII.U...... 4.500 (in) @ 11,094 (ft) 18.93 MANHRS WORKED 444.00 ACCIDENT DESCRIPTION: SAFETY MTG TOPICS: Tripping LAST STOP CARD INSP? LAST RIG INSPECTION 06:00 10:00 4.00 9,515 9,585 AF DRLPR DRILL DOHD Directionally drill 7" hole F/9515' to 9585' ART=1.7 hrs. AST= .3hrs. 10:00 12:00 2.00 9,585 9,585 AF DRLPR CIRC CLN CBUX2 12:00 17:00 5.00 9,585 9,585 AF DRLPR TRIP BHA POOH to Bha 17:00 18:00 1.00 9,585 9,585 AF DRLPR TRIP BBHD Pull Bha & lay dn mtr. & RMR 18:00 18:30 0.50 9,585 9,585 AF DRLPR TEST WEAR Pull wear bshg. & set test plug. 18:30 20:30 2.00 9,585 9,585 AF DRLPR TEST BOP Test all bop equipment to 250/2500 psi. Chg. out no. 7 valve on choke manifold. performance test koomey, Test waived by Jim Regg with AOGC 20:30 21:00 0.50 9,585 9,585 AF DRLPR TEST WEAR Pull test plug and set wear bshg. 21:00 22:30 1.50 9,585 9,585 AF DRLPR TRIP BBHD MIU Bha i5 New mud mtr & Re-set Ako 1.8, Orientate MWD 22:30 01:30 3.00 9,585 9,585 AF DRLPR TRIP BHA TIH to csg. shoe @ 5942' 01:30 03:00 1.50 9,585 9,585 AF DHLPR RIG SCDL Slip and Cut Drill Linel 186' cut ,146' slipped 03:00 05:00 2.00 9,585 9,585 AF DRLPR TRIP BHA Continue tih to 9585' , precautionary wash last std to bottom 05:00 06:00 1.00 9,585 9,585 AF DRLPR CIRC MUD Circ out trip gas & set MWD computer 12 3/3 4.750 HTC 3RR1/4 4.750 HTC BIT/RUN I WOB (kip) I RPM 3/3 2/5 70/70 HCM404 7003485 11/11/11/11/11/1111/1 5,962.0 8/9/2004 O-O-NO-G-D- I-NO-BHA HCM404 7003485 11/11/11/11/11/11/1/1 9,585.0 8/16/2004 1-1-CT-G-[)'1-NQ-TD GPM I PRESS(psl) I P BIT(psi) I HRS 24Hr DIST(ft) I 24Hr ROP(ftlhr) CUM HRSICUM DEPTH(ft) CUM ROp(ftlhr) 316 2,550 278 2.00 70.0 35.00 104.50 3.623.0 l 34.67 I 104 102 102 4314" HTC PDC Bit, 411/16" X 7" RWD ,4314" Mach 1XU1.8AKO Slick. 4518" NM Camp DP, 4518" NM Stab, MWD , Hang-Off Sub, 4 314" NM Drill collar. 4 5/8" NM Cornp DP , 3 1/2" 24PPF HWDP (4), 4314" Drilling JarslHyd bumper Printed: 91312004 11:04:36AM e e 1 OILWELL 8.000 4.000 70 86.82 2,050 260.46 2 OILWELL 8.000 4.000 70 86.82 2,050 260.46 3 OILWELL 8.000 4.000 70 86.82 2,050 260.46 707 AVG. CONN: AVG. TRIP: AVG. BKGRD: 15 MAX. CONN: MAX. TRIP: MAX. DRL: 15 9,331.0 9,393.0 24.80 25.20 306.50 6,393.32 5,950.22 4,917.23 -3,353.04 0.71 305.50 6,449.51 5,975.08 4,932.63 -3,374.24 0.94 9,455.0 9,517.0 25.80 26.00 304.50 6.505.476.000.244,947.93 -3,396.11 1.19 303.40 6,561.24 6,025.60 4,963.06 -3,418.57 0.84 Marathon Glacier Drilling Baker Hughes Inteq Epoch Well Services service tech service tech 1 24.00 M·I Drilling Fluids 20 252.00 R&K Industrial 2 48.00 Swaco 4 48.00 engineer driver tech 1 24.00 2 24.00 2 24.00 LAST BOP TEST: 8/16/2004 LAST CASING TEST: 819/2004 NEXT BOP TEST: 8/23/2004 20.000 9.625 7.000 18.730 8.755 6.276 17.82 18.93 (psi) @ (ppg) 722 (psi) @ 9.00 (ppg) 1,765 (psi) @ 9.00 (ppg) 119 1,927 5,942 119 1,575 3,420 133.00 47.00 26.00 K-55 L·BO L·BO 3,060 6,330 7,240 Printed: 91312004 11 :04:36 AM e e WELL NAME SUSAN DIONNE 2 SUPERVISOR Larry Myers FIELD NAME WILDCAT-FOR UNNAMED FIELD STATElPROV Alaska CURRENT STATUS 0 lAM Directionally Drilling 7" hole OPERATION COMMENTS MWD Computer repair, Drill F/9585 to 10128' 124 HR PROG TMD 135.00 543.0 10,128 AUTH MD 11 ,094 MOCWI 907-283-1312 60.0000 COUNTY/OTHER I LAST CASING Kenai Borough 7.000 (in) @ 5,942 (ft) \24 HR FORECAST Directionally Drill 7" hole NRI DD0309646CAPDRL I ran v WI:, I t"nC>T I NEXT CASING 4.500 (in) @ 11,094 (ft) t'!'1U W ::LL COST 21.0 RIG NAME &0 NO. GLACIER DRILLING 1 RIG PHONE I LEAKOFF 18.93 MANHRS WORKED 444.00 ACCIDENT DESCRIPTION: SAFETY MTG TOPICS: Tripping PSI TEST LAST STOP CARD AUDIT INSP? LAST RIG INSPECTION N 06:00 08:00 2.00 9,585 9,585 TA DRLPR EQUIP REQP LOGS Trouble shoot and repair MWD surface computer. 08:00 06:00 22.00 9,585 10,128 AF DRLPR DRILL DOHD Directionally drill 7" hole F/9585' to 10128' ART=8.5 hrs. AST=6.2 hrs. 12 BIT/RUN WOB (kip) I RPM 3RR1/4 3/7 75/75 GPM I PRESS(psi) I P BIT{paI} I 316 2,550 9,585.0 8116/2004 HRS l24Hr DlST{ft) 124Hr ROP(ftlhr)\CUM HRSICUM DEPTH{ft) CUM ROP{ftlhr) 14.70 543.0 36.94 14.70 543.0 36.94 6,000 145,000 110,000 110,000 I 118 118.00 15 15 4314" HTC PDC Bit, 4 11/16" X 7" RWD ,4314" Mach 1XU1.8 AKO Slick, 45/8" NM Camp DP , 45/8" NM Stab, MWD . Hang-Off Sub, 4314" NM Drill collar, 4 518" NM Camp DP , 31/2" 24PPF HWDP (4), 4314" Drilling JarslHyd bumper sub dn .31/2" 24PPF HWDP (21), 3112"IF-P X HT-38-B 1 OILWELL 8.000 4.000 85 105.43 2,550 316.29 60 840 2 OILWELL 8.000 4.000 85 105.43 2,550 316.29 60 840 3 OILWELL 8.000 4.000 85 105.43 2,550 316.29 60 840 532 AVG. CONN: 20 AVG. TRIP: AVG. BKGRD: 12 MAX. CONN: 45 MAX. TRIP: MAX. DRL: 40 9,587.0 26.70 303.80 6,623.97 6,054.64 4,980.25 -3,444.45 1.03 9,827.0 24.70 311.60 6,840.93 6,153.62 5,045.36 -3,523.60 0.20 9,639.0 25.60 307.50 6,670.61 6,076.39 4,993.64 -3,463.13 3.59 9,889.0 24.80 310.90 6,897.236,178.89 5,062.47 -3,543.11 0.50 9,701.0 25.10 310.30 6,726.596,102.055.010.36 -3,483.87 2.24 9,951.0 25.00 310.20 6,953.47 6,204.23 5,079.44 -3,562.95 0.57 9,763.0 24.60 311.80 6,782.81 6,127.49 5,027.53 -3,503.59 1.13 10,013.0 24.70 309.60 7,009.73 6,229.45 5,096.15 -3,582.94 0.63 Prioted: 91312004 11 :04:38 IWt e e Marathon Glacier Drilling Baker Hughes Inteq Epoch Well Services service tech service tech 1 24.00 M-I Drilling Fluids 20 252.00 R&K Industrial 2 48.00 Swaco 4 48.00 engineer driver tech 1 24.00 2 24.00 2 24.00 LAST BOP TEST: 8/16/2004 LAST CASING TEST: 8/912004 NEXT BOP TEST: 8/23/2004 20.000 9.625 7.000 18.730 8.755 6.276 17.82 18.93 (psi) @ (ppg) 722 (psi) @ 9.00 (ppg) 1,765 (psi) @ 9.00 (ppg) 119 1,927 5,942 119 1,575 3,420 133.00 47.00 26.00 K-55 L-80 L-80 3,060 6,330 7,240 Printed: 9/312004 11 :04:38 IW e e Legal Well Name: SUSAN DIONNE 2 Common Well Name: SUSAN DIONNE 2 Event Name: ORIGINAL DRILLING Report #: Start: 1 7/24/2004 Spud Date: 7/29/2002 Report Date: 8/1/2004 End: Hole Size: 12.250 (in) Hole Size: Hole Size: Hole Size: TMD Set: 1 ,927.0 (ft) sa TMD: (ft) TMD Set: Top Set: (ft) Date Set: 7/31/2004 sa Date: Date Set: BTM set: (ft) Csg Type: SURFACE CASING sa Type: Csg Type: Plug Date: Csg Size: 9.625 (in) SQ TMD: Plug Type: sa Date: Drilled Out: Cmtd. Csg: OPEN HOLE Cmtd. Csg: Cmtd. Csg: Cmtd. Csg: Cement Co: B.J. SERVICES Cementer: Pipe Movement: RECIPROCATING Rot Time Start: : Ree Time Start:18:oo Time End: : Time End: 21:30 Avg Torque: (ft-Ibf) Drag Up: 7,000 (Ib) RPM: SPM: Init Torque: (ft-Ibf) Stroke Length: 6.0 (ft) Max Torque: (ft-Ibf) Drag Down: 3,500 (Ib) Type: Spacer Volume Excess %: 50.00 Meas. From: Guage Hole Time Circ Prior To Cementing: 3.50 Mud Circ Rate: 168 (gpm) Mud Circ Press: 210 (psi) Start Mix Cmt: 20:40 Start Slurry Displ: Start Displ: End Pumping: End Pump Date: Top Plug: Y Bottom Plug: Y Disp Avg Rate: Disp Max Rate: Bump Plug: Press Prior: Press Bumped: Press Held: Float Held: 6.50 (bbVmin) 6.50 (bbVmin) Y 370 (psi) 1,020 (psi) 5 (min) Y Returns: 100% 12 ppg Total Mud Lost: (bbl) Cmt Vol to Surf: 40.00 (bbl) Ann Flow After: N Mixing Method: Density Meas By: Type: SPUD MUD Density: 9.5 (ppg) Vise: 59 (slqt) Bottom Hole Circulating Temperature: (OF) Displacement Fluid Type:MUD PVNP: 13 (cp)/14 (lbl100ft2) Gels 10 see: 7 (lbI100ft2) Gels 10 min: 33 (lbl1ooft2) Bottom Hole Static Temperature: (OF) Density: 9.4 (ppg) Volume: 136.00 (bbl) Slurry Data Fluid Type: LEAD Slurry Interval: 21.00 (ft) Water Source: Well Test Data Thickening Time: Free Water: (%) Fluid Loss: (00) Fluid Loss Pressure: (OF) Description: NEAT To: 1,927.00 (ft) Cmt Vol: 420 (sk) Slurry VoI:40.0 (bbl) Class: CLASS G Density: 12.00 (ppg) Yield: 2.51 (ft3/sk) Water Vol: 112.0 (bb!) Other Vol: () Purpose: FILLER CEM Mix Water: 11.28 (gal/sk Foam Job: N Temperature: (oF) Temperature: (OF) Temperature: (OF) Time Compressive Strength 1: Compressive Strength 2: Temp (OF) (oF) Pressure (psi) (psi) Prinl8<I: 91312004 11 :04:05 AM e e Legal Well Name: SUSAN DIONNE 2 Common Well Name: SUSAN DIONNE 2 Event Name: ORIGINAL DRILLING Report #: Start: 1 7/24/2004 Spud Date: 7/29/2002 Report Date: 8/1/2004 End: LW6 CD32 FP6L Sod Metasc MPA1 18.00 0.30 1.00 1.00 20.00 % BWOC % BWOC GaV100sk % BWOC % BWOC Test Press: (psi) For: (min) Cement Found between Shoe and Collar: Pressure: (ppge) Tool: Open Hole: (ft) Hrs Before Test: Liner Lap: Pos Test: (ppge) Neg Test: (ppge) Hrs Before Test: Cement Found on Tool: Tool: Tool: CBL Run: Under Pressure: (psi) Bond Quality: Cet Run: Bond Quality: Temp Survey: Hrs Prior to Log: Cement Top: (ft) How Determined: TOC Sufficient: Job Rating: If Unsuccessful Detection Indicator: Remedial Cementing Required: Number of Remedial Squeezes: Printed: 91312004 11 :04:05 AM e e Legal Well Name: SUSAN DIONNE 2 Common Well Name: SUSAN DIONNE 2 Event Name: ORIGINAL DRILLING Report #: Start: 2 7/24/2004 Spud Date: 7/29/2002 Report Date: 8/8/2004 End: Hole Size: 8.500 (in) Hole Size: Hole Size: Hole Size: TMD Set: 5,942.2 (ft) sa TMD: (ft) TMD Set: Top Set: (ft) Date Set: 81812004 sa Date: Date Set: BTM set: (ft) Csg Type: INTERMEDIATE CASI sa Type: Csg Type: Plug Date: Csg Size: 7.000 (in) sa TMD: Plug Type: sa Date: Drilled Out: Cmtd. Csg: INTERMEDIATE CASI Cmtd. Csg: Cmtd. Csg: Cmtd. Csg: Cement Co: B.J. SERVICES Cementer: Pipe Movement: Rot Time Start: : Ree Time Start: : Time End: Time End: RPM: SPM: Inlt Torque: (ft-Ibf) Stroke Length: (ft) Avg Torque: (ft-Ibf) Drag Up: (Ib) Max Torque: (ft-Ibf) Drag Down: (Ib) Type: PRIM CMT 1ST STAGE Start Mix Cmt: 04:07 Disp Avg Rate: 6.58 (bbl/min) Retums: Full Volume Excess %: 25.00 Start Slurry Displ: Disp Max Rate: 6.58 (bbVmin) Total Mud Lost: (bbl) Meas. From: Caliper Start Displ: Bump Plug: Y Cmt Vol to Surf: 20.00 (bbl) Time Circ Prior End Pumping: Press Prior: 1,000 (psi) To Cementing: 1.00 End Pump Date: Press Bumped: 1,500 (psi) Ann Flow After: N Mud Clrc Rate: 192 (gpm) Top Plug: Y Press Held: 1 (min) Mixing Method: Mud Circ Press: 802 (psi) Bottom Plug: Y Float Held: Y Density Meas By: Type: Flo-Pro Density: 9.8 (ppg) Vise: 46 (sIqt) Bottom Hole Circulating Temperature: (oF) Displacement Fluid Type:MUD PVIYP: 12 (cp)/22 (lbl1ooft2) Gels 10 see: 12 (lbl1ooft2) Gels 10 min: 19 (lbl100ft2) Bottom Hole Static Temperature: (OF) Density: 9.8 (ppg) Volume: 219.00 (bbl) Slurry Data Fluid Type: LEAD Slurry Interval: (ft) Water Source: Well Description: To: 4,942.00 (ft) Cmt Vol: 250 (sk) Slurry Vo130.0 (bbl) Class: CLASS G Density: 12.50 (ppg) Yield: 2.47 (ft31sk) Water Vol: 82.0 (bbl) Other Vol: 0 Purpose: ZONAL ISOL Mix Water: 13.77 (gaVsk Foam Job: N Test Data Thickening Time: 5.11 Free Water: 0.40 (%) Fluid Loss: 505.0 (00) Fluid Loss Pressure: 75 (OF) Temperature:75 (OF) Temperature:75 (OF) Temperature:75 (OF) Time Compressive Strength 1: 5.85 Compressive Strength 2: 24.00 Temp 88 (OF) 88 (OF) Pressure 50 (psi) 453 (psi) Printed: 91312004 11 :04:20 AM e e Legal Well Name: SUSAN DIONNE 2 Common Well Name: SUSAN DIONNE 2 Event Name: ORIGINAL DRILLING Report #: Start: 2 7/24/2004 Spud Date: 7/29/2002 Report Date: 8/8/2004 End: MPA-1 FL-52 SMS CO-32 FP-6L 20.00 0.30 2.00 0.20 1.00 0/0 BWOC 0/0 BWOC 0/0 BWOC 0/0 BWOC gphs Slurry Data Fluid Type: TAIL Slurry Interval: 4,942.00 (ft¡ro: Water Source: Well Description: 5,942.00 (ft) Cmt Vol: 160 (sk) Slurry Vol: (bbl) Class: CLASS G Density: 15.80 (ppg) Yield: 1.17 (f!3/sk) Water Vol: 19.2 (bbl) Other Vol: () Purpose: ZONAL ISOL Mix Water: 4.97 (gaVsk) Foam Job: N Test Data Thickening Time: 4.70 Free Water: (0/0) Fluid Loss: 64.0 (cc) Fluid Loss Pressure: 75 (OF) Temperature:75 (OF) Temperature:75 (OF) Temperature:75 (OF) Time Compressive Strength 1: 7.92 Compressive Strength 2: 10.90 Temp 88 (oF) 88 (oF) Pressure 50 (psi) 500 (psi) KCL FL-63 EC-1 ASA-301 CO-32 R-3 FP-6L 2.00 0.60 0.50 0.10 0.30 0.2Q 1.00 0/0 BWOC 0/0 BWOC 0/0 BWOC 0/0 BWOC 0/0 BWOC 0/0 BWOC gphs Printed: 91312004 11 :04:20 AM e e Legal Well Name: SUSAN DIONNE 2 Common Well Name: SUSAN DIONNE 2 Event Name: ORIGINAL DRILLING Report #: Start: 2 7/24/2004 Spud Date: 7/29/2002 Report Date: 8/8/2004 End: Test Press: (psi) For: (min) Cement Found between Shoe and Collar: Pressure: (ppge) Tool: Open Hole: (ft) Hrs Before Test: Liner Lap: Pos Test: (ppge) Neg Test: (ppge) Hrs Before Test: Cement Found on Tool: Tool: Tool: CBL Run: Under Pressure: (psi) Bond Quality: Cet Run: Bond Quality: Temp Survey: Hrs Prior to Log: Cement Top: (ft) How Determined: TOC Sufficient: Job Rating: If Unsuccessful Detection Indicator: Remedial Cementing Required: Number of Remedial Squeezes: Increased lead cement F/216sxs to 250sxs. Had 20bbls cement to surface. Printed: 91312004 11 :04:20 ÞNo Legal Well Name: SUSAN DIONNE 2 Common Well Name: SUSAN DIONNE 2 Report #: 1 Event Name: ORIGINAL DRILLING Start: 7/24/2004 String Type: SURFACE CASING Permanent Datum: KELLY BUSHING Hole Size: 12.250 (in) Hole TVD: 1 ,575.0 (ft) KB-Datum: 0.00 (ft) Water TMD: Ground Level: 135.00 (ft) CF Elevation: (ft) Liner Overlap: (ft) Circ Hours: 3.50 (hr) Mud Lost: (bbl) KB to Cutoff: 23.00 (ft) Manufacturer: VECTO GRAY Model: SOL Hanger Model: Multi Bowl Packoff Model: Support Bshg Csg Hd Upper 11.000 1 1.730 23.00 N VETCO Csd Hd Lower 9.625 1 1.920 24.73 N VETCO CSG JT I PARTIAL 9.625 L-80 8.525 Mod-Butt 8.620 26.65 Sumitomo CASING JOINT(S) 9.625 47.0 L-80 8.525 Mod-Butt 44 ,805.180 35.27 Sumitomo CASING FLOAT COLLA 9.625 Butt 1 1.500 1,840.45 Y Weatherford CASING JOINT(S) 9.625 47.0 L-80 8.525 Mod-Butt 2 83.350 ,841.95 Y Sumitomo CASING FLOAT SHOE 9.625 Butt 1 .700 ,925.30 Y Weatherford ,927.00 Spud Date: 7/29/2002 Report Date: 7/31/2004 End: 1,927.0 (ft) 70,000 (Ib) 62.90 (0) 3 (days) Hole TMD: Str Wt on Slips: Max Hole Angle Days From Spud: e Top Hub/Flange: 11.000 (in) 15,000 (psi) BTM HublFlange:9.625 (in) I 3,000 (psi) e AM 1:04:01 10.875 9.625 8.681 8.681 8.681 8.681 Printed: 91312004 9.625 9.625 9.625 NEW NEW NEW NEW NEW NEW NEW Spud Date 7/29/2002 Report Date: 8/8/2004 End: e 5,962.0 (ft) 48,000 (Ib) 67.10 (0) 11 (days) (psi) (psi) (in) 15,000 (in) I 3,000 .000 .000 Top Hub/Flange: 11 BTM Hub/Flange:11 e 6.276 6.276 6.276 6.276 6.276 6.276 6.276 6.276 7.000 10.750 7.656 7.000 7.656 7.656 7.656 7.656 5,932.0 ClAMPED 5,818.0 ClAMPED 4,872.0 ClAMPED 1 :04:22 AM Hole TMD: Str Wt on Slips: Max Hole Angle: Days From Spud: Printed: 91312004 5,909.0 5,325.0 ,793.0 Legal Well Name: SUSAN DIONNE 2 Common Well Name: SUSAN DIONNE 2 Report #: 2 Event Name: ORIGINAL DRILLING Start: 7/24/2004 String Type: INTERMEDIATE CASING Permanent Datum: KELLY BUSHING Hole Size: 4.500 (in) Hole TVD: 3,433.0 (ft) KB-Datum: 0.00 (ft) Water TMD: Ground Level: 135.00 (ft) CF Elevation: (ft) Liner Overlap: (ft) Circ Hours: 1.00 (hr) Mud Lost (bbl) KB to Cutoff: 23.00 (ft) Manufacturer: VECTOGRAY Model: MB-150 Hanger Model: Packoff Model: Actual TMD Set: 5,942.180 (ft) CASING HANGER 7.000 7 1/4'acme 1 0.660 23.00 VETCO CASING HANGER 10.750 1 0.310 23.66 VETCO CASING HANGER 7.656 BTC 1 0.480 23.97 VETCO PUP JOINT 7.000 26.0 L-80 BTC 1 3.990 24.45 CASING JOINT(S) 7.000 26.0 L-80 BTC-mod 142 5,830.660 28.44 CASING FLOAT COLLA 7.000 L-80 BTC 1 1.270 5,859.10 Weatherford CASING JOINT(S) 7.000 26.0 L-80 BTC-mod 2 80.350 5,860.37 CASING FLOAT'SHOE 7.000 BTC 1 .460 5,940.72 Weatherford CENTRALIZER Weatherford 4 20.0 CENTRALIZER Weatherford 13 41.0 CENTRALIZER Weatherford 26 120.0 Spud Date: 7/29/2002 Report Date: 8/8/2004 End: Legal Well Name: SUSAN DIONNE 2 Common Well Name: SUSAN DIONNE 2 Event Name: ORIGINAL DRILLING 2 7/24/2004 Report #: Start: e e 1:04:22 AM Printed: 91312004 CSG run with no probtem. Floated most of the cent on tube due to 9 5/8" being 47#. Spotted 1 bbI EP lube in annulus. Difficult to run CSG with cent. e e WELL NAME SUSAN DIONNE 2 SUPERVISOR Dave Morris I Larry Myers FIELD NAME WILDCAT-FOR UNNAMED FIELD STATElPROV Alaska CURRENT STATUS. 6AM Drill ahead 7" hole OPERATION COMMENTS Drill ahead 10128 - 10657, POH for washout, C/O washed jt DP, RIH, drill ahead 10657 - 10704 24 HR PROG TMD 576.0 10,704 AUTH MD 11,094 MOC WI 907-283-1312 60.0000 COUNTYIOTHER I LAST CASING Kenai Borough 7.000 (in) @ 5,942 (ft) \24 HR FORECAST Drill ahead towards csg TD NRI DD0309646CAPDRL I ft... v WI:" ""= I _ t'IIU WF'_L GU.., I NEXT CASING I LEAKOFF 4.500 (in) @ 11 ,094 (ft) 18.93 21.0 RIG NAME" NO. GLACIER DRILLING 1 RIG PHONE MANHRS WORKED I ACCIDENT TYPE LAST SAFETY MTG 444.00 None 8/19/2004 ACCIDENT DESCRIPTION: SAFETY MTG TOPICS: Stand pipe manifold operation BOP PSI TEST 8/16/2004 LAST STOP CARD AUDIT LAST RIG INSPECTION 06:00 21:00 15.00 10,128 10,657 AF DRLPR DRILL DOHD Drillahead 7" hole drctnl, 10128 - 10657 ft ART = 11.8 hrs No conn drag, no loss I gain, flow check connections Note SPP drop 700 PSI/15 min. PIPD Test surface equip, no leak, prepare I POH for washout Nonnal drag, no swab, no loss I gain PIPD C/O washed jt DP,( slip area ), std #73, 4526 ft Test MWD I motor assy Service Rig PIPD Flow check, RIH 10500 ft, precaution wash 60 ft, no fill Resume drill ahead 7" hole drctnl, 10567 - 10704 ft ART =.7 hrs Ave gas 45 units, Conn gas 50 - 100, trip gas 1950 No conn drag, no loss I gain, flow check connections Cuttings nonnal quantity I quality WOB 3 - 7, RPM 70, SPP 2900, SPM 240 Up 150, Dn 85, Rot 115 No acc I dn time, trouble time washout 7.5 hrs 21:00 00:30 3.50 10,657 10,657 TA DRLPR TRIP BHA 00:30 01:30 1.00 10,657 10,657 TA DRLPR TRIP BHA 01:30 02:00 0.50 10,657 10,657 AF DRLPR RIG SERV 02:00 05:00 3.00 10,657 10,567 TA DRLPR TRIP BHA 05:00 06:00 1.00 10,567 10,704 AF DRLPR DRILL DOHD RPM 40170 GPM I PRESS(psi) I P BIT(psi) 294 2,900 244 9,585.0 8/16/2004 HRS I 24Hr DIST(ft) 124Hr ROP(ftlhr)\CUM HRS CUM DEPTH(ft) CUM ROP(ftlhr) 12.50 1,119.0 89.52 27.20 1,662.0 61.10 11,600 150,000 115.000 115,000 2,500/2,350 131.00 4314" HTC PDC Bit, 4 11/16" X 7" RWD ,4314" Mach 1XL/1.8 AKO Slick, 4518" NM Camp DP ,4518" NM Stab, MWD , Hang-Off Sub, 4 314" NM Drill collar, 4 5/8" NM Comp DP , 3 1/2" 24PPF HWDP (4), 4314" Drilling Jars/Hyd bumper sub dn , 3 1/2" 24PPF HWDP (21), 3 1/2" IF-P X HT-38-B Printed: 9/312004 11 :03:54 AM e e 1 OILWELL 8.000 4.000 75 93.02 2,900 279.06 60 1,000 2 OILWELL 8.000 4.000 75 93.02 2,900 279.06 60 1,000 3 OILWELL 8.000 4.000 75 93.02 2,900 279.06 60 1,000 532 AVG. CONN: 20 AVG. TRIP: 12 MAX. CONN: 45 MAX. TRIP: 40 10,076.0 24.70 309.60 7,066.96 6,254.89 5,112.93 -3,603.22 0.00 10,387.0 23.90 310.50 7,350.996,378.17 5,196.29 -3,698.62 0.48 10,138.0 24.10 311.90 7,123.43 6,279.77 5,129.65 -3,622.62 1.81 10,449.0 23.60 310.80 7,407.74 6,402.42 5,212.55 -3,717.56 0.52 10,200.0 23.90 311.90 7,180.076,304.38 5,146.49 -3,641.39 0.32 10.511.0 23.80 310.10 7,464.51 6,426.60 5,228.72 -3,736.53 0.56 10.262.0 23.90 310.70 7.236.75 6,328.84 5,163.06 -3,660.26 0.78 10,574.0 22.80 309.40 7,522.37 6.450.70 5.244.66 -3,755.68 1.65 10,324.0 24.00 311.20 7,293.41 6,353.31 5,179.56 -3,679.27 0.36 Marathon Glacier Drilling Baker Hughes Inteq Epoch Well Services service tech service tech 2 24.00 M-I Drilling Aulds 20 252.00 R&K Industrial 2 48.00 Swaco 4 48.00 engineer driver tech 1 24.00 2 24.00 2 24.00 LAST BOP TEST: 8/1612004 LAST CASING TEST: 8/912004 NEXT BOP TEST: 8/2312004 20.000 9.625 7.000 18.730 8.755 6.276 17.82 18.93 (psi) @ (ppg) 722 (psi) @ 9.00 (ppg) 1,765 (psi) @ 9.00 (ppg) 119 1.927 5,942 119 1,575 3,420 133.00 47.00 26.00 K-55 L·BO L-BO 3,060 6,330 7,240 Printed: 91312004 11 :03:54 AM e e WELL NAME SUSAN DIONNE 2 SUPERVISOR Dave Morris FIELD NAME WILDCAT-FOR UNNAMED FIELD STATE/PROV Alaska CURRENT STATUS 0 6AM Circ clean for logs OPERATION COMMENTS Drill ahead csg TD 11094, circ, wiper trip, circ well clean 124 HR PROG TMD 135.00 390.0 11,094 AUTH MD 11,094 MOCWI 907-283-1312 60.0000 COUNTYIOTHER LASTCASING Kenai Borough 7.000 (in) @ 5,942 (ft) 124 HR FORECAST Circ, POH, E-Iogs 21.0 RIG NAME & NO. GLACIER DRILLING 1 RIG PHONE NRI DD0309646CAPDRL I DAILY WELL COST J CUM ....,,, I "nST I NEXT CA::iINIó I LEAKOFF 4.500 (in) @ 11 ,094 (ft) 18.93 MANHRS WORKED ACCIDENT TYPE LAST SAFETY MTG BOP PSI TEST 432.00 None 8/20/2004 8/16/2004 ACCIDENT DESCRIPTION: SAFETY MTG TOPICS: Connection / trip gases LAST STOP CARD AUDIT REGULATORY INSP? LAST RIG INSPECTION N 06:00 19:00 13.00 10,704 11,094 AF DRLPR DRILL DOHD 19:00 21 :00 21 :00 03:30 2.00 11,094 11,094 AF DRLPR CIRC CLN 6.50 11,094 11,094 AF DRLPR TRIP WTRP 03:30 06:00 2.50 11,094 11,094 AF DRLPR CIRC CLN Drill ahead 7" hole drctnl, 10704 - 11094 TD well this depth (MD 11094, TVD 8007) ART = 12.8 hrs Ave gas 30 units, Conn gas 40 - 75 No conn drag, no gain I loss, flow check connections Cuttings normal quantity / quality WOB 3/8, RPM 70, SPP 2900, SPM 240 Up 170, Dn 85, Rot 120 Circ well clean for wiper trip, no gain I loss PJSM, wiper trip to shoe, wellbore exe cond, precaution wash 60 ft to btm, no fill. Circ well clean, prepare POH for logs. Cuttings normal quantity / quality, no gain I loss RPM 40 I 70 GPM I PRESS(psl) I P BIT(psl) 298 2,900 11/11/11/11/11/11111/ 9,585.0 811612004 HRS I 24Hr DIST(ft) 24Hr ROP(ftlhr) CUM HRSICUM DEPTH(ft)ICUM ROP(ftlhr) 12.80 390.0 30.47 40.00 2,052.0 51.30 11,600 170,000 120,000 120,000 2,950/2,600 144.00 4314" HTC PDC Bit, 4 11/16" X 7" RWD ,4 314" Mach 1 XLJ1.8 AKO Slick, 4 518" NM Comp' DP , 4 5/8" NM Stab, MWD , Hang-Off Sub, 4314" NM Drill collar, 4 518" NM Camp DP , 3 1/2" 24PPF HWDP (4), 4 314" Drilling JarslHyd bumper sub dn, 31/2" 24PPF HWDP (21), 31/2" IF-P X HT-38-B 1 OILWELL 8.000 4.000 80 99.23 2,900 297.69 60 1,000 2 OILWELL 8.000 4.000 80 99.23 2,900 297.69 60 1,000 3 OILWELL 8.000 4.000 80 99.23 2,900 297.69 60 1,000 Printed: 913/2004 11 :03:53 AM e e AVG. CONN: MAX. CONN: 20 45 AVG. BKGRD: MAX. DRL: 532 12 40 10.636.0 22.20 309.50 7,579.65 6,473.62 5,259.73 -3,774.00 0.97 10.946.0 21.00 305.70 7,867.64 6,582.80 5,329.14 -3,864.68 0.71 10.698.0 21.70 308.80 7,637.166,495.97 5,274.37 -3.791.97 0.91 11.007.0 20.20 305.10 7,924.94 6,603.09 5,341.58 -3,882.17 1.36 10,760.0 21.80 307.60 7,694.74 6,518.02 5,288.57 -3,810.03 0.74 11,026.0 20.00 305.20 7,942.78 6.609.25 5.345.34 -3,887.51 1.07 10,822.0 21.70 306.50 7,752.33 6,539.94 5,302.41 -3,828.36 0.68 11,094.0 20.00 305.20 8,006.68 6,631.21 5,358.74 -3.906.52 0.00 10,884.0 21.30 306.60 7.810.02 6,561.57 5,315.95 -3.846.62 0.65 Marathon Glacier Drilling Baker Hughes Inteq Epoch Well Services service tech service tech 1 24.00 M-I Drilling Fluids 20 252.00 R&K Industrial 2 48.00 Swaco 4 48.00 engineer driver tech 1 1 2 24.00 12.00 24.00 LAST BOP TEST: 811612004 LAST CASING TEST: 8/9/2004 NEXT BOP TEST: 8123/2004 20.000 9.625 7.000 18.730 8.755 6.276 17.82 18.93 (psi) @ (ppg) 722 (psi) @ 9.00 (ppg) 1.658 (psi) @ 9.60 (ppg) 119 1,927 5,942 119 1,575 3,420 133.00 47.00 26.00 K-55 L-BO L·BO 3,060 6,330 7,240 Printed: 91312004 11 :03:53 AM e e WELL NAME SUSAN DIONNE 2 SUPERVISOR Dave Morris FIELD NAME WILDCAT-FOR UNNAMED FIELD STATElPROV Alaska CURRENT STATUS 0 6AM E-Iogs OPERATION COMMENTS Circ, POH, lay dn BHA #5, RIH Reeves shuttle assyon 4" DP, POH logging 24 HR PROG TMD 11,094 AUTH MD 11,094 MOCWI 907-283-1312 60.0000 COUNTYIOTHER I LAST CASING Kenai Borough 7.000 (in) @ 5,942 (ft) 124 HR FORECAST E-Iogs, evaluate E-Iogs 21.0 RIG NAME" NO. GLACIER DRILLING 1 RIG PHONE NRI DD0309646CAPDRL I DAILY WELL COST I. I NEXT 1,;A:iING 4.500 (in) @ 11,094 (ft) DATE 21-Aug-2004 SAPIWBS COST \ ,....a.....e.. ""'~ I I LEAKOFF 18.93 MANHRS WORKED I ACCIDENT TYPE I LAST SAFETY MTG 348.00 None 8/21/2004 ACCIDENT DESCRIPTION: SAFETY MTG TOPICS: Lock out procedure BOP PSI TEST 8/16/2004 LAST STOP CARD AUDIT REGULATORY INSP? 8/21/2004 N I LAST RIG INSPECTION 06:00 06:30 0.50 11,094 11 ,094 AF DRLPR CIRC CLN Pump wt pill, flow check, prepare POH for logs 06:30 13:00 6.50 11,094 11 ,094 AF DRLPR TRIP BHA PJSM, POH SLM (no correction), no drag I swab I gain I loss correct hole fill. 13:00 15:30 2.50 11,094 11 ,094 AF DRLPR TRIP BBHD Flow check, layout BHA #5, 4314 X 7" drctnl assy, clear rig floor. 15:30 17:30 2.00 11,094 11,094 AF EVALPR LOG OTHR PJSM, RIU Reeves E-Iog equip, surface test same 17:30 22:30 5.00 11 ,094 11,094 AF EVALPR LOG OTHR RIH E-Iog equip on 4" DP, circ I clear pipe at 245 ft, resume RIH, stage circ at 2000 ft intervals 22:30 00:00 1.50 11,094 11 ,094 AF EVALPR CIRC CLN CBU, pipe clear, trip gas 275 units, no gain I loss 00:00 01:30 1.50 11 ,094 11,094 AF EVALPR LOG OTHR POH to 10978 ft, deploy tools at 1500 psi, pump wt pill. 01:30 06:00 4.50 11 ,094 11,094 AF EVALPR LOG OTHR Commence POH E-Iogging BITIRUN WOB (kip) I RPM 3RR1/4 3/8 40/70 GPM I PRESS(psi) I P BIT(psl) I 298 2,900 9,585.0 8/16/2004 HRS I 24Hr DIST(ft) 124Hr ROP(Whr) CUM HRS CUM DEPTH(ft) CUM ROp(Whr) 30.47 40.00 2,052.0 51.30 o 170,000 120,000 120,000 I 4314" HTC PDC Bit, 4 11/16" X 7" RWD ,4314" Mach 1XU1.8 AKO Slick, 4518" NM Comp DP , 4 518" NM Stab, MWD , Hang-Off Sub, 4 314" NM Drill collar, 4518" NM Comp DP , 3 1/2" 24PPF HWDP (4), 4314" Drilling JarslHyd bumper sub dn, 31/2" 24PPF HWDP (21), 31/2" IF-P X HT-38-B 1 01 LWELL 8.000 4.000 300 372.10 2,800 620.16 60 1,000 2 OIL WELL 8.000 4.000 100 124.03 2,800 620.16 60 1,000 3 OILWELL 8.000 4.000 100 124.03 2,800 620.16 100 1,000 Printed: 91312004 11 :03:51 AM e e AVG. CONN: MAX. CONN: 20 45 AVG. BKGRD: MAX. DRL: 532 12 40 Marathon Glacier Drilling Baker Hughes Inteq service tech 1 24.00 Epoch Well Services 20 252.00 M·I Drilling Fluids 1 24.00 service tech engineer 2 24.00 1 24.00 LAST BOP TEST: 8/1612004 LAST CASING TEST: 8/9/2004 NEXT BOP TEST: 8/2312004 20.000 9.625 7.000 18.730 8.755 6.276 17.82 18.93 (psi) @ (ppg) 722 (psi) @ 9.00 (ppg) 1 ,658 (psi) @ 9.60 (ppg) 119 1,927 5,942 119 1,575 3,420 133.00 47.00 26.00 K-55 L-BO L-BO 3,060 6,330 7,240 Printed: 9IaI2OO4 11 :03:51 AM e e WELL NAME SUSAN DIONNE 2 SUPERVISOR Dave Morris FIELD NAME WILDCAT·FOR UNNAMED FIELD STATElPROV Alaska CURRENT STATUS 0 6AM POH laying dn 4" DP OPERATION COMMENTS Complete E-Iogs, RIH 4" DP, circ / cond, POH laying dn DP 24 HR PROG TMD 11,094 AUTH MD 11,094 DD0309646CAPDRL MOO WI NRI I DAILY WELL COST I ....'u we, I I"L>!U .- 907-283-1312 60.0000 COUNTYIOTHER LASTCASlNG I NEXT CASING ILEAKOFF - Kenai Borough 7.000 (in) @ 5,942 (ft) 4.500 (in) @ 11,094 (ft) 18.93 124 HR FORECAST Lay dn DP, run / cmt 41/2 prod csg 21.0 RIG NAME. NO. GLACIER DRILLING 1 RIG PHONE MANHRS WORKED 348.00 ACCIDENT DESCRIPTION: SAFETY MTG TOPICS: V door safety RIG INSPECTION 06:00 09:30 3.50 11,094 11,094 AF EV ALPR LOG OTHR Cont POH logging Reeves shuttle system, ( CWS, MAl, MSS, MPD. MON, NMS, MBS) 11084 . 2642 ft No drag / gain I loss. Correct hole fill. 09:30 11:00 1.50 11 ,094 11,094 AF EVALPR LOG OTHR Layout Reeves tools, all related equip, clear floor. Relay data MOC Anc office. Release unit. 11:00 14:30 3.50 11,094 11,094 AF EVALPR LOG OTHR RIH 4" DP to 7' shoe 5930 ft 14:30 15:00 0.50 11,094 11,094 AF EVALPR CIRC MUD Circ / cond while wait on log evaluation 15:00 15:30 0.50 11,094 11,094 AF EVALPR RIG SCDL Slip and Cut Drill Line 15:30 16:00 0.50 11,094 11,094 AF EVALPR RIG SERV Service Rig 16:00 20:00 4.00 11,094 11,094 AF EVALPR CIRC MUD Circ / cond while wait on log evaluation Begin completion phase Marathon Glacier Drilling Baker Hughes Inteq service tech 1 24.00 Epoch Well Services 20 252.00 M·I Drilling Fluids 1 24.00 service tech engineer 2 24.00 1 24.00 LAST BOP TEST: 8/16/2004 LAST CASING TEST: 8/912004 NEXT BOP TEST: 8/2312004 20.000 9.625 18.730 8.755 17.82 (psi) @ (ppg) 722 (psi) @ 9.00 (ppg) 119 1,927 119 1,575 133.00 47.00 K-55 L-80 3,060 6,330 Printed: 91312004 11 :03:49 AM e e LAST BOP TEST: 8/16/2004 LAST CASING TEST: 8/9/2004 NEXT BOP TEST: 8/23/2004 Printed: 91312004 11 :03:49 AN. e e WELL NAME SUSAN DIONNE 2 SUPERVISOR Dave Morris RELD NAME WILDCAT-FOR UNNAMED FIELD STATE/PROV Alaska CURRENT STATUS 0 &AM POH laying dn 4' DP OPERATION COMMENTS POH laying dn 4" DP 124 HR PROG TMD 135.00 11 ,094 AUTH MD 11,094 MOCWI 907-283-1312 60.??oo COUNTYIOTHER I LAST CASING I NEXT CASING Kenai Borough 7.000 (in) @ 5,942 (ft) 4.500 (in) @ 11,094 (ft) 124 HR FORECAST Lay dn 4" DP, run I cmt 4 1/2 prod csg 21.0 RIG NAME & NO. GLACIER DRILLING 1 RIG PHONE NRI DD0309646CAPCMP01 I n4lL Y WELL COST I CUM WELL COST LEAKOFF 18.93 MANHRS WORKED 475.00 ACCIDENT DESCRIPTION: SAFETY MTG TOPICS: Participation safety meetings I LAST SAFETY MTG 812612004 ¡BOP PSI TEST 811612004 RIG INSPECTION 8/2612004 20:00 22:00 2.00 11,094 11,094 AF CSGPRO TRIP WTRP RIH 4" DP, wiper trip ¡ cond for csg run 22:00 01:30 3.50 11,094 11,094 AF CSGPRO CIRC MUD Circ I cond for csg run. Trip gas 350 units. No gain ¡loss 01:30 06:00 4.50 11,094 11,094 AF CSGPRO TRIP PUDP PJSM, flow check, POH laying dn 4" DP for 4112 csg run No drag ¡ swab I gain I loss. Correct hole fill. 180 jts out.at 0600 hrs. Marathon Glacier Drilling Baker Hughes Inteq Epoch Well Services Drlg Frmn Rig Hands service tech service tech 1 24.00 M-I Drilling Fluids 20 252.00 R&K Industrial 2 48.00 Swaco 4 48.00 Reeves WireJine engineer driver tech Elogs 1 1 2 3 24.00 12.00 24.00 43.00 ·~.äüüUlä~, LAST CASING TEST: 819/2004 LAST BOP TEST: 811612004 NEXT BOP TEST: 8123/2004 7.000 18.93 7,240 Printed: !l.l2112004 11:12:44AM 24 HR PROG TMD 11 ,094 AUTH MD 11 ,094 MOCWI 907-283-1312 60.0000 1 LAST CASING 7.000 (in) @ 5,942(ft) 124 HR FORECAST Run 1 cmt 4 1/2 prod csg e WELL NAME SUSAN DIONNE 2 SUPERVISOR Dave Morris FIELD NAME WILDCAT-FOR UNNAMED FIELD STATElPROV Alaska CURRENT STATUS. 6AM RIH 4 1/2 prod csg OPERATION COMMENTS Lay dn 4" DP, RIH 4 1/2 prod csg IGL 21.0 135.00 RIG NAME" NO. GLACIER DRILLING 1 RIG PHONE COUNTYIOTHER Kenai Borough e IDOL IRPT. DATE 27 2 23-Aug-2004 "A_OLe: COST NRI DD0309646CAPCMP01 1 nAil V WJ:I' r.nln' L' W WJ:', roOST I NEXT CASING I LEAKOFF 4.500 (in) @ 11,094 (ft) 18.93 MANHRS WORKED I ACCIDENT TYPE I LAST SAFETY MTG 414.00 None 8/27/2004 ACCIDENT DESCRIPTION: SAFETY MTG TOPICS: Get help with heavy lifting BOP PSI TEST 8/16/2004 LAST STOP CARD AUDIT REGULATORY INSP? 8/27/2004 N LAST RIG INSPECTION 06:00 13:30 7.50 11 ,094 11 ,094 AF CSGPRO TRIP LDDP 13:30 16:00 2.50 11,094 11 ,094 AF CSGPRO EQUIP RURD 16:00 18:00 2.00 11,094 11,094 AF CSGPRO TEST BOP 18:00 06:00 12.00 11 ,094 11,094 AF CSGPRO CSiG RUN Cont POH laying dn 4" DP I HWDP, no drag 1 swab 1 loss Clear rig floor all drlg tools, PJSM, AlU Weatherford csg equip, prepare rig floor 4112 csg PJSM, C/O rams to 41/2, test same 250 12500 psi Test successful, no re-test PJSM, MlU I RIH 4 1/2 shoe track, thread lock all conn's ( Guide shoe, 3 its 4 1/2, Float collar) Follow with 125 its 41/2, 12.6 ppf, L80, Mod Butt prod csg. Baker ZXP Pkr, 49 its 4 1/2 csg at 0600 hrs. No dn drag 1 gain I loss. Correct displacement. No ace I dn time. 1 OILWELL 2 OILWELL 3 OILWELL 8.000 8.000 8.000 5.000 5.000 5.000 Fairweather E&P Service Marathon Glacier Drilling Epoch Well Services M-I Drilling Fluids 24.00 24.00 :20 252.00 24.00 24.00 Drlg Foreman PE Rig Hands service tech engineer 0.00 0.00 0.00 R&K Industrial driver Swaco tech Weatherford Drilling & Int Csg Crew Baker Oil Tools Pkr Rep 12.00 12.00 18.00 24.00 LAST BOP TEST: 8/16/2004 NEXT BOP TEST: 812312004 LAST CASING TEST: 8/912004 7,240 7.000 18.93 1 .641 (psi) 4:» 9.70 (ppg) Printed: 9/21/2004 11:18:43 AM e e 124 HR PROG TMD 11,094 AUTH MD 11,094 DD0309646CAPCMP01 MOC WI NRI I DAlL V WI'" ,.".,.,. I 907-283-1312 60.0000 COUNTYIOTHER I LAST CASING I NEXT CASING Kenai Borough 4.000 (in) @ 11,094 (ft) (in) @ 0 (ft) 124 HR FORECAST Nipple up tree, test, release rig KB 21.0 RIG NAME & NO. GLACIER DRILLING 1 RIG PHONE WELL NAME SUSAN DIONNE 2 SUPERVISOR Dave Morris FIELD NAME WILDCAT-FOR UNNAMED FIELD STATElPROV Alaska CURRENT STATUS 0 6AM Nipple up prod tree OPERATION COMMENTS RIH 4 1/2 csg, work free stuck pipe, RIH 4 1/2 csg to btm, circ clean, cmt csg, nipple dn, woe SAFETY MTG TOPICS: Inspection lifting equipment 06:00 07:30 1.50 11,094 11,094 AF CSGPRO CSG RUN 07:30 09:30 2.00 11,094 11,094 TA CSGPRO CSG RUN 09:30 10:30 1.00 11,094 11,094 AF CSGPRO CSG RUN 10:30 14:00 3.50 11,094 11,094 AF CSGPRO CSG RUN 14:00 15:30 1.50 11,094 11,094 AF CSGPRO CIRC MUD 15:30 18:30 3.00 11,094 11,094 AF CSGPRO CEMT PRIM 18:30 03:00 03:00 06:00 8.50 11,094 11,094 AF CSGPRO NUND DBOP 3.00 11,094 11,094 AF CSGPRO NUND DBOP - -....-..--. --- liA~~;; , LAST STOP CARD AUDIT REGULATORY INSP? 8/2412004 N RIG INSPECTION RIH with 15 jts 41/2,12.6 ppf, LBO, Mod Tubing Butt prod csg to 8000'. RU to break circulation and casing is stuck. CSSK Work pipe, circulate while mixing 25 bbllubricant pill with 50% lubtex and 25 ppb Asphasol to free stuck pipe. Spot pill to end of tubing, change out to short bails. Work down 5 rounds of torque with top drive. Begin reciprocating pipe between 25K to 150K while pumping pill up annulus until free. SO 50K, PU BOK. RIH 16 joints 4 1/2 , 12.6 ppf, LBO, Mod Tubing Butt prod csg. MU Baker Chemical Injection Nipple (8430 psi Burst-75oo psi Collapse: with 1" OD Interdesign H Series Injection Valve with dual checks and 5K rupture cartridge (10K working pressure). Continue RIH with 50 joints 41/2,12.6 ppf, LBO, Mod Tubing Butt prod csg. While tripping in hole MU joint and pipe is stuck. Work pipe for 15 minutes to free. Cant RIH to btm at 11094 ft. Guide shoe 11094 ft, float collar 10969 ft, pkr 5732 ft. Inj xple 2400 ft. Circ / cond fluids, trip gas 300 units, cuttings return normal quantity I quality. Traces coal. No gain 11055. Cant circ I cond in prep for cmt specs. Note: Can not recip pipe. Max 10 ft upward movement. PJSM, Commence cmt 4 1/2 csg as follows: Pump 5 bbl H2o, test lines 5000 psi, pump 37 bbI MCS40 spacer Mix I pump 215 bbl"G", 13.5 ppg Drop plug, confirm plug dropped Displace with 168 bbl KCL, correct displacement. Bump plug with 3230 psi, build to 3700 psi / set pkr Cont build to 4500 psi 110 min, tbg test successful Bleed 1.5 bbls, floats holding. Plug bumped, cmt in place 1816 hrs. 100% returns, no gain I loss ICP = 5BO psi, FCP = 2270 psi, linear press rise entire job. PJSM, Nipple dn BOPE, CIO rams, clean pits while woe Suspend BOP stack, cut csg, remove BOP, begin install Printed: 9/2112004 11:11:56AM e e . WELL NAME SUSAN DIONNE 2 1 OILWELL 2 OILWELL 3 OILWELL 8.000 8.000 8.000 0.00 0.00 0.00 5.000 5.000 5.000 Fairweather E&P Service Marathon Glacier Drilling Epoch Well Services M-I Drilling Fluids R&K Industrial LAST BOP TEST: 8/16/2004 Drlg Foreman PE Rig Hands service tech engineer driver 1 24.00 Swac:o tech 1 12.00 1 16.00 Weatherford Drilling & Int Csg Crew 2 36.00 20 252.00 Baker Oil Tools Pkr Rep 1 24.00 1 24.00 BJ Services Cementers 3 36.00 1 24.00 Pollard Wireline Control Line 2 30.00 1 12.00 .ÖBUdt....... . LAST CASING TEST: 812412004 "'~$jQ1? 1 ,641 (psi) @ 9.70 (ppg) (psi) @ (ppg) NEXT BOP TEST: 8/2312004 7.000 4.000 6.276 3.958 18.93 5,942 11,094 3,420 8,007 26.00 Lao 12.60 Lao 7,240 10,010 Printed: 9t'2112OO4 11 :11:56 AM e e Legal Well Name: SUSAN DIONNE 2 Common Well Name: SUSAN DIONNE 2 Event Name: ORIGINAL COMPLETION Report #: Start: 1 8/22/2004 Spud Date: 7/29/2002 Report Date: 8/24/2004 End: Hole Size: 7.000 (in) TMD Set: 11,094.0 (ft) Date Set: 8124/2004 Csg Type: PRODUCTION CASIN Csg Size: 4.500 (in) Hole Size: SO TMD: (ft) SQ Date: SQ Type: Hole Size: TMD Set: Date Set: Csg Type: SO TMD: SQ Date: Cmtd. Csg: Cmtd. Csg: OPEN HOLE Cement Co: B.J. SERVICES Cmtd. Csg: Cementer: Hole Size: Top Set: (ft) BTM set: (ft) Plug Date: Plug Type: Drilled Out: Cmtd. Csg: Pipe Movement: STUCK PRIOR CMT Rot Time Start: : Ree Time Start: : Time End: Time End: RPM: SPM: Init Torque: (ft-Ibf) Stroke Length: (ft) Avg Torque: (ft-Ibf) Drag Up: (Ib) Max Torque: (ft-Ibf) Drag Down: (Ib) Type: Spacer Start Mix Cm!: 16:29 Disp Avg Rate: 4.30 (bbVmin) Retums: No Volume Excess %: Start Slurry Displ: Disp Max Rate: 4.80 (bbVmin) Total Mud Lost: (bbl) Meas. From: Start Displ: Bump Plug: Y Cmt Vol to Surf: (bbl) Time Circ Prior End Pumping: Press Prior: 2,370 (psi) To Cementing: End Pump Date: Press Bumped: 3,230 (psi) Ann Flow After: N Mud Circ Rate: 250 (gpm) Top Plug: N Press Held: 10 (min) Mixing Method: Mud Circ Press: 750 (psi) Bottom Plug: N Float Held: Y Density Meas By: Type: KCL 6% Density: 8.6 (ppg) Vise: 28 (sIqt) Bottom Hole Circulating Temperature: (OF) Displacement Fluid Type:BRINE PVIYP: 1 (cp)/1 (1b/1oofl2) Gels 10 see: 11 (1b/1ooft2) Gels 10 min: 15 (1b/100ft2) Bottom Hole Static Temperature: (OF) Density: 8.6 (ppg) Volume: 135.00 (bbl) Slurry Data Fluid Type: TAIL Slurry Interval: 5,130.00 (ft}To: Water Source: Well Description: NEAT 11,094.00 (ft':;mt Vol: 724 (sk) Slurry VoI215.0 (bbl) Class: CLASS G Density: 13.50 (ppg) Yield: 1.82 (ft3/sk) Water Vol: 159.0 (bbl) Other Vol: () Purpose: FILLER CEM Mix Water: 9.21 (gaVsk) Foam Job: N Test Data Thickening Time: Free Water: (%) Fluid Loss: (cc) Fluid Loss Pressure: (OF) Temp (oF) (oF) Temperature: (OF) Temperature: (OF) Temperature: (OF) Time Compressive Strength 1: Compressive Strength 2: Pressure (psi) (psi) Printed: 9I21f2004 tl:t2:23AM e e Legal Well Name: SUSAN DIONNE 2 Common Well Name: SUSAN DIONNE 2 Event Name: ORIGINAL COMPLETION Report #: Start: 1 8/22/2004 Spud Date: 7/29/2002 Report Date: 8/24/2004 End: BA-SO Cal Chlor BA-56 CD-32 ASA-301 FP-6L Sod Metasc 10.00 0.75 2.50 0.40 0.10 1.00 0.50 % BWOC % BWoe % BWOC % BWoe % BWoe gaV100 sack % BWoe Test Press: (psi) For: (min) Cement Found between Shoe and Collar: Pressure: (ppge) Tool: Open Hole: (ft) Hrs Before Test: Liner Lap: Pes Test: (ppge) Neg Test: (ppge) Hrs Before Test: Cement Found on Tool: Tool: Tool: CBL Run: Under Pressure: (psi) Bond Quality: Cet Run: Bond Quality: Temp Survey: Hrs Prior to Log: Cement Top: (ft) How Determined: Toe Sufficient: Job Rating: If Unsuccessful Detection Indicator: Remedial Cementing Required: Number of Remedial Squeezes: Printed: 912112004 11:12:23AM Legal Well Name: SUSAN DIONNE 2 Common Well Name: SUSAN DIONNE 2 Report #: 1 Event Name: ORIGINAL COMPLETION Start: 8/22/2004 String Type: PRODUCTION CASING #1 Permanent Datum: KELLY BUSHING Hole Size: 4.500 Hole TVD: 8,007.0 (ft) KB-Datum: 0.00 (ft) Water TMD: Ground Level: 135.00 (ft) CF Elevation: (ft) Liner Overtap: (ft) Circ Hours: (hr) Mud Lost: (bbl) KB to Cutoff: 21.00 (ft) Manufacturer: VECTO GRAY Model: Multi Bowl Hanger Model: Slip Type Packoff Model: PkfSupport Actual TMD Set: 11,095.060 (ft) Csg Hd Upper 11.000 1.730 21.00 Vetco Csg Hd Lower 9.875 1.920 22.73 Vetco Partial Cut Jt 4.500 L-80 3.833 BTC 17.130 24.65 3,400 TUBING JOINT(S) 4.500 12.6 L-80 3.833 BTC 57 2,353.010 41.78 3,400 NI TUBING PUP JOINT 4.500 12.6 L-80 3.833 BTC 1 6.100 2,394.79 3,400 NI CHEMICAL INJECTION 4.500 BTC 1 3.600 2,400.89 3,400 Baker TUBING PUP JOINT 4.500 12.6 L-80 3.833 BTC 3 24.050 2,404.49 3,400 NI TUBING JOINT(S) 4.500 12.6 L-80 3.833 BTC 80 3,297.630 2,428.54 3,400 NI TUBING PUP JOINT 4.500 12.6 L-80 3.833 BTC 1 6.260 5,726.17 3,400 NI CROSSOVER 4.500 12.6 L-80 3.833 BTC 1 1.080 5,732.43 3,400 PACKER 7.000 BTC 1 9.870 5,733.51 3,400 Baker TUBING PUP JOINT 4.500 12.6 L-80 3.833 BTC 1 3.800 5,743.38 3,400 NI TUBING JOINT(S) 4.500 12.6 L-80 3.833 BTC 28 1,158.070 5,747.18 3,400 NI MARKER JT 4.500 12.6 L-80 3.833 BTC 1 20.880 6,905.25 3,400 TUBING JOINT(S) 4.500 12.6 L-80 3.833 BTC 39 1,610.870 6,926.13 3,400 Nt MARKER JT 4.500 12.6 L-80 3.833 BTC 1 20.780 8,537.00 3,400 TUBING JOINT(S) 4.500 12.6 L-80 3.833 BTC 58 2,413.290 8,557.78 3,400 NI FLOAT COLLAR 4.500 3.833 BTC .450 10,971.07 3,400 Y Gemco Spud Date: 7/29/2002 Report Date: 8/24/2004 End: e 11 ,094.0 (ft) (I b) (0) (days) Hole TMD: Str Wt on Slips: Max Hole Angle Days From Spud: Top Hub/Flange: (in) I 5,000 (psi) BTM Hub/Flange: (in) 13,000 (psi) e 11,12:35AM 3.958 3.958 3.958 3.958 3.958 3.958 3.958 3.958 3.958 3.958 3.958 3.958 3.958 3.958 3.958 3.958 Printed: 9/2112004 4.500 4.500 4.500 4.500 4.500 4.500 4.500 4.500 4.500 4.500 4.500 4.500 4.500 4.500 4.500 4.500 NEW NEW NEW NEW NEW NEW NEW NEW NEW NEW NEW NEW NEW NEW NEW NEW NEW NEW Spud Date: 7/29/2002 Report Date: 8/24/2004 End: NEW 4.500 3.958 NEW 4.500 3.958 e - Printed: 912112004 11 :12:35 AM Legal Well Name: SUSAN DIONNE 2 Common Well Name: SUSAN DIONNE 2 Event Name: ORIGINAL COMPLETION Report #: 1 Start: 8/22/2004 3 121.480 10,972.52 3,400 Y NI .060 11,094.00 3,400 Y Gernco 3.833 BTC 3.833 BTC 12.6 L-80 4.500 4.500 TUBING JOINT(S) FLOAT SHOE e e WELL NAME SUSAN DIONNE 2 SUPERVISOR Dave Morris FIELD NAME WILDCAT-FOR UNNAMED FIELD STATElPROV Alaska CURRENT STATUS 0 &AM Prepare move Cannery #9 OPERATION COMMENTS Install prod tree, test, test annulus, rig dn for move Cannery #9 124 HR PROG TMD 11 ,094 AUTH MD 11,094 DD0309646CAPCMP01 MOCWI NRI I DAlLYWELLCOSTj CUM WELL ,,"U.., 907-283-1312 60.0000 COUNTY/OTHER I LAST CASING 1 NEX", \;AI>INU Kenai Borough 4.000 (in) @ 11 ,094 (ft) (in) @ 0 (ft) 124 HR FORECAST Partial rig move Cannery #9, rig maintenance IGL 21.0 135.00 RIG NAME & NO. GLACIER DRILLING 1 RIG PHONE KB I~p PSI TEST 8/16/2004 SAFETY MTG TOPICS: Review Rig Dn Ops 06:00 10:00 4.00 11 ,094 11,094 AF XMBO NUND UTRE 10:00 11:00 1.00 11 ,094 11 ,094 AF CSGPRO TEST CSG 11:00 06:00 19.00 11,094 11 ,094 AF RDMO RIG RDMO I LEAKOFF LAST STOP CARD AUDIT REGULATORY INSP? 8/25/2004 N RIG INSPECTION 1iU"~" PJSM, install pkf, terminate control line, test same, install prod tree, test same, all tests successful. PJSM, test tbg annulus 1000 psi 115 min. Test good. Set BPV, secure well. PJSM, commence rig dn, prepare move to Cannery #9 1 OILWELL 2 OILWELL 3 OILWELL 8.000 8.000 8.000 5.000 5.000 5.000 0_00 0.00 0.00 Fairweather E&P Service Drlg Foreman Marathon PE Glacier Drilling Rig Hands 1 24.00 M-I Drilling Auids 1 16.00 R&K Industrial 20 252.00 engineer driver 24.00 12.00 NEXT BOP TEST: 8/2312004 LAST CASING TEST: 8/25/2004 M.û'Síœ:.·· 1,641 (psi) @ 9.70 (ppg) (psi) @ (ppg) 7,240 10,010 LAST BOP TEST: 8/16/2004 7.000 4.000 18.93 6.276 3.958 5,942 11,094 26.00 LBO 12.60 LBO 3,420 8,007 Printed: 912112004 11:11:40AM e ~o ¿.j - /6 7 CJ C:. L <- , ,->'}."."''''''':' WEll NAME KB I Gl 124 HR PROG TMD SUSAN DIONNE 2 21.0 135.00 11,094 SUPERVISOR RIG NAME & NO. AUTH MD Dave Morris GLACIER DRILLING 1 11,094 FIELD NAME RIG PHONE MOC WI WILDCAT-FOR UNNAMED FIELD 907-283-1312 60.0000 ST ATElPROV COUNTYIOTHER ¡lAST CASING ~ I '[NEXT CASING ~~~~~~T STATUS 0 6AM Kenai Borough _l=.·.;;....~..,~\i.n,~.. :,~,,~.' ..' ~\ (in)@O(ft) Rig released to CLU#9 @ OO:OOhrs 08/26/2004. - I, ~ 'i\ " " OPERATION COMMENTS r (.. ,\\~, \\. \ V RID rig. Release rig. \;\...J \ .~, 'J..'lIlilt_IL" îwp PSI TEST lAST STOP CARD AUDIT REGULATORY INSP? 8/16/2004 8/25/2004 N NRI DD0309646CAPCMP01 I OAll Y WEll COST I CUM WELL {;u.., IlEAKOFF MANHRS WORKED ACCIDENT TYPE 291.00 None ACCIDENT DESCRIPTION: RIG INSPECTION SAFETY MTG TOPICS: 12:00 00:00 12.00 11,094 11,094 AF RDMO RIG RDMO Lower Derrick and prep to layover. Crane off windwalls, stairs, dog house. RID beaver slide. Load out MI van and mud pump#3. PJSM. RID wlcrane, choke house, front windwalls, stairs, landings, outriggers, conex, flowline, diesel tank and derrick house. Lay derrick over and prep f/move. RID camp, mechanic and parts houses, welding shop. Load trailers. Scope down substucture. 06:00 12:00 6.00 11,094 11,094 AF RDMO RIG RDMO Rig released @OO:OOhrs 8/26/2004 to CLU#9. ;q~$(¡"t(W»ft} .1 'PJ "'1 "PlJH'9 ¡ ,._i-'~<- - ", -.' ;'. 28 1/1 Fairweather E&P Service Drlg Foreman 1 6.00 R&K Industrial driver Marathon PE 1 12.00 Weaver Brothers (WBI) Drivers 6 72.00 Glacier Drilling Rig Hands 20 189.00 Veco Alaska Crane 2 12,00 M-I Drilling Fluids engineer QÄSINGiiûMMÄÎi'f ' . LAST CASING TEST: 8/25/2004 Mt«sœ ., tJþ.(ft} .. 1,641 (psi) @ 9.70 (ppg) 5,942 (psi) @ (ppg) 11,094 (psi) @ (ppg) 11 ,094 LAST BOP TEST: 8/16/2004 "$~.(jh): It! (in); ßiWÊ~fËSiT(~). 7.000 6.276 18.93 4.500 3.958 4.000 3.958 NEXT BOP TEST: 8/2312004 3,420 8,007 8,007 26,00 Lao 12.60 Lao 12.60 Lao 7,240 10,010 10,010 Printed: 9/2112004 11:11:10 AM / / &2 -- &f ids ~ to· I+1fLL LOG TRANSMITTAL . ~tf- /07 ProActive Diagnostic Services, Inc. To: AOGCC 333 W. 7th Street Suite 700 Anchorage, Alaska 99501 HE: Distribution - Final Print(s] The technical data listed below is being submitted herewith. Please acknowledge receipt by returning a signed copy of this transmittal letter to the attention of : Joey Burton / Jeni Thompson ProActive Diagnostic Services, Inc. P. O. Box 1369 Stafford, TX 77497 WELL DATE loG TYPE DIGITAL OR CD-ROM 1 BLUE LINE PRINT(S) REPORT OR BLUE LINE Open Hole 1 Res. Eva!. CH 1 1 Caliper Survey 1 Rpt or 2 Color 10-11 10-19-04 /,A Signed . -----.~.·.//.~··'/~ ,. . '",' 1"\' . / 1/ I .. I' Of' ..ffde~ J: td-¡ (A ~ Date ¡fbrf c/ Print Name: PRoACTivE DiAGNOSTic SERvicES, INC., PO Box 1 ~b9 STAffoRd IX 77477 Phone:(281) 565-9085 Fax:(281) 565-1369 E-mail: pds@memorylog.com Website: www.memorylog.com . . ~ FRANK H. MURKOWSKI, GOVERNOR AI,ASIiA. OIL AND GAS CONSERVATION COMMISSION 333 W. 7'" AVENUE, SUITE 100 ANCHORAGE, ALASKA 99501-3539 PHONE (907) 279-1433 FAX (907) 276-7542 KenD. Walsh Advanced Production Engineer Marathon Oil Company P.O. Box 1949 Kenai, AK 99611-1949 Re: Susan Dionne #2 Sundry Number: 304-378 Dear Mr. Walsh: Enclosed is the approved Application for Sundry Approval relating to the above- referenced well. Please note the conditions of approval set out in the enclosed form. As provided in AS 31.05.080, within 20 days after written notice of this decision, or such further time as the Commission grants for good cause shown, a person affected by it may file with the Commission an application for rehearing. A request for rehearing is considered timely if it is received by 4:30 PM on the 23rd day following the date of this letter, or the next working day if the 23rd day falls on a holiday or weekend. A person may not appeal a Commission decision to Superior Court unless rehearing has been requested. BY ORDER OF THE COMMISSION DATED thisli day of October, 2004 Enel. . . Alaska Business Unit Nt MARATHON I- ~ Marathon Oil Company P.O. Box 1949 Kenai, AK 99611-1949 Telephone 907/283-1311 Fax 907/283-6175 October 11, 2004 Winton Aubert AOGCC 333 West ¡th Ave Suite 100 Anchorage, AK 99501 Dear Mr. Aubert: Attached and submitted for your approval is the Form 10-403 to isolate the bottom perforated interval, 10796'-10854' MD, in the Susan Dionne #2 well below a cast iron./ bridge plug. The Tyonek perforated interval, 10671 '-10707' MD will be hydraulically ,/ fracture stimulated with approximately 37000 Ibs. of 20/40 sand in a KCL water-based crosslinked polymer transport fluid. Both of these intervals have been perforated. Neither interval has produced formation gas to surface following the perforating events. After the flowback and test of the fracture stimulated interval, additional uphole pay will ./ be perforated to achieve a desired production rate. This well was drilled in August 2004 under AOGCC drilling permit number 204-107. If you would like any other information, please contact me at 283-1311 or kdwalsh@marathonoil.com. Sincerely, \ÚM-b.W~ Ken D. Walsh Advanced Production Engineer Enclosure RECEIVED or T 1, '",-,) 7004 . <,.J 1L.::) ~,. , ,,":s"ion Alaska Oil & L¡:m¡; 0wH,,,1 ~,' Anchorage 'I Abandon Ii.] Alter casing D Change approved program 0 1. Type of Request: 2. Operator Name: MARATHON OIL COMPANY 3. Address: P. O. Box 1949, Kenai, AK 99611·1949 7. KB Elevation (ft): 156' KB (21' AGL) 8. Property Designation: ADL 359242/1 &ADL 389180 11. Total Depth MD (ft): 11,094' Casing Structural Conductor Surface Intermediate Production Li ner Perforation Depth MD (ft): 10,796'-10,854' and 10,671'- 10707' Packers and SSSV Type: ITotal Depth TVD (ft): 8007' Length 133 1906' 5921' 11,073' \¡..iGA:;- lOll ~ ¡loot STATE OF ALASKA . RECr="IED ALASKA OIL AND GAS CONSERVATION COMMISSION APPLICATION FOR SUNDRY APPROVAL OCT 1 3 20å4 Alaska 0lj & Gas Lu. .""0 ,..., Perforate U /' Waiver U Annuìar DIs¡t6º'~ SSI(lf1 Stimulate 0 Time Extension D Arwhoragfbther D Re-enter Suspended Well D . Suspend U Repair well D Pull Tubing D 20 AAC 25.280 Operational shutdown U Plug Perforations D Perforate New Pool D 4. Current Well 9Iá;~'i; Development/' ~/ Stratigraphic \"U Service Exploratory D D 5. Permit to Drill Number: 204-107 r' 6. API Number: 50-133-20541 // 9. Well Name and Number: Susan Dionne #2 / 10. Field/Pools(s): NinilchiklTyonek PRESENT WELL CONDITION SUMMARY IEffective Depth MD (ft): IEffective Depth TVD (ft): IPlugs (measured): IJUnk (measured): 10,970' (float collar) 7890' Size MD TVD Burst Collapse 20" 133' 133' NIA NIA 9 5/8" 4750 7240 8430 6870 5410 7500 1927' 5942' 11094' 1575' 3420' 8007' 7" 4-1/2" Perforation Depth TVD (ft): 7728'-7782' and 7612'-7646' Tubing Size: Tubing Grade: Tubing MD (ft): Signature \ ~ 't\ ' vJ~ 12. Attachments: Description Summary of Proposal Detailed Operations Program D BOP Sketch 14. Estimated Date for Commencing Operations: 16. Verbal Approval: Commission Representative: 17. I hereby certify that the foregoing is true and correct to the best of my knowledge. Contact IL E. ~ 'b. \kJ ~ L-S \-.+ Printed Name Ken D. Walsh Title Advanced Production Engineer Packers and SSSV MD (ft): Baker Midstring Packer 5733' l.:J D 13. Well Class after proposed work: Exploratory D Development 0 15. Well Status after proposêd work: Oil D Gas é~/ Plugged D WAG D GINJ "'Ù WINJ D Service D Abandoned WDSPL D D 10/12/2004 Date: Phone 907-283-1311 COMMISSION USE ONLY 10/11/2004 ~~' Date SUndry Number: 30L/ r 3 Conditions of approval: Notify Commission so that a representative may witness Plug Integrity D BOP Test D Mechanical Integrity Test D Location Clearance D Other: x: ~ trt\..~ I 0 ~ 4-D 1 ~t ~ d ~ u-Î:J ~ -l-tl,J ~ Approved by: BY ORDER OF COMMISSIONER THE COMMISSION O'Œ /ðjcffy; OR\G\NAL e e ~~~~E (ill (êù ';' nì'\ o FRANK H. MURKOWSKI, GOVERNOR ~ AI,.4.SIiA. OIL AlO) GAS CONSERVATION COMMISSION 333 W. 7'" AVENUE, SUITE 100 ANCHORAGE, ALASKA 99501-3539 PHONE (907) 279-1433 FAX (907) 276-7542 September 15,2004 Ken D. Walsh Advanced Production Engineer Marathon Oil Company P.O. box 1949 Kenai, Alaska 99511-1949 ~oq.- J D7 Re: Susan Dionne #2 Sundry: 304-351 Dear Mr. Walsh: Enclosed is the approved Application for Sundry Approval relating to the above- referenced well. Please note the conditions of approval set out in the enclosed form. As provided in AS 31.05.080, within 20 days after written notice of this decision, or such further time as the Commission grants for good cause shown, a person affected by it may file with the Commission an application for rehearing. A request for rehearing is considered timely ifit is received by 4:30 PM on the 23rd day following the date of this letter, or the next working day if the 23rd day falls on a holiday or weekend. A person may not appeal a Commission decision to Superior Court unless rehearing has been requested. Enclosure e e Alaska Business Unit M MARATHON . ~ Marathon Oil Company P.O. Box 1949 Kenai, AK 99611-1949 Telephone 907/283-1311 Fax 907/283-6175 September 13, 2004 RECEIVED SEP 1 5 2004 Winton Aubert AOGCC 333 West ¡th Ave Suite 100 Anchorage, AK 99501 Alaska Oil & Gas Cons. Commission Anchorage Dear Mr. Aubert: Attached and submitted for your approval is the Form 10-403 to complete the Tyonek gas pay in the Susan Dionne #2 well bore. This well was drilled in August 2004 under AOGCC drilling permit number 204-107. Also attached for your records is the well schematic, proposed operational procedure, and final directional survey. Marathon will submit a Form-10-403 for your approval prior to initiating any fracture / stimulation treatment in this well. If you would like any other information, please contact me at 283-1311 or kdwalsh@marathonoil.com. Sincerely, I~D,~~ Ken D. Walsh Advanced Production Engineer Enclosures o RIG I ['\J _ STATE OF ALASKA _ ALA. Oil AND GAS CONSERVATION COM~ION APPLICATION FOR SUNDRY APPROVAL 20 AAC 25.280 Operational shutdown U Plug Perforations D Perforate New Pool D 4. Current Well Class: Abandon U Alter casing D Change approved program 0 2. Operator Name: 1. Type of Request: MARATHON OIL COMPANY 3. Address: P. O. Box 1949, Kenai, AI< 99611-1949 7. KB Elevation (ft): 156' KB (21' AGL) 8. Property Designation: ADL 359242/1 &ADL 389180 11. Total Depth MD (ft): 11,094' ¡Total Depth TVD (ft): 8007' Length 133 Casing Structural Conductor Surface Intermediate Production Liner Perforation Depth MD (ft): 1906' 5921' 11,073' '1441\- q) 15/2..00 t Suspend U Repair well D Pull Tubing D Annular Dispos. U Other D Perforate U Waiver U Stimulate D Time Extension D Re-enter Suspended Well D 5. Permit to Drill Number: 204-107 / Development Stratigraphic o D Exploratory D D 6. API Number: 50-133-20541 / Service 9. Well Name and Number: Susan Dionne #2 /" 10. Field/Pools(s): NinilchikITyonek PRESENT WELL CONDITION SUMMARY I Effective Depth MD (ft): IEffective Depth TVD (ft): 10,970' (float collar) 7890' Size MD TVD 20" 133' 133' IPlugs (measured): Burst NIA IJUnk (measured): Collapse NIA 95/8" 1927' 5942' 11094' 1575' 3420' 8007' 4750 6870 7240 5410 8430 7500 ITubing MD (ft): 5733' 0 / Service D 7" 4-112" I Perforation Depth TVD (ft): Packers and SSSV Type: Tubing Size: Tubing Grade: Packers and SSSV MD (ft): Baker Midstring Packer 12. Attachments: Description Summary of Proposal U Detailed Operations Program 0 BOP Sketch D 14. Estimated Date for Commencing Operations: 16. Verbal Approval: Commission Representative: 17. I hereby certify that the foregoing is true and correct to the best of my knowledge. Contact ~ ~ uJ ~ l-S ~ Printed Name Ken D. Walsh II (¡ Title Advanced Production Engineer Signature \~\... 'tJ , uJ~ Phone 907-283-1311 Date 9/13/2004 9/20/2004 13. Well Class after proposed work: Exploratory D Development 15. Well Status after proposed work: Oil D Gas 0 / Plugged D WAG D GINJ D WINJ D Abandoned D WDSPL D Date: COMMISSION USE ONLY Conditions of approval: Notify Commission so that a representative may witness Sundry Number: 30'/-.35/ Plug Integrity D BOP Test D Other: Ar r .0 1I e d (0 r "'^- S"',..,""", Fo"" Re'"ht:} 0 . {D 1 ' ~Pro~q; ð« Form 1 0-403 Revised 12/2003 Mechanical Integrity Test D tCl ç i2J1V(.i£ {tL~ 5£P 1 ß'ltYf~~ D u.æ ({ . RECEI\/ED SEP 1 5 2004 Location Clearance I 0 ," f 0 ') r< D l,<.t ~ d If"~.'. I~~ OR\G\~JAL Alaska Oil & Gas C ill ,,,,. ..;ommi:/Sion BY ORDER OF A' THE COMMISSION Date: ~~tf· sl,~t ~n Duplicate COMMISSIONER INSTRUCTIONS ON REVERSE e e MARATHON OIL COMPANY ALASKA REGION Ninilchik Field Susan Dionne #2 Completion Procedure WBS # DD.03.09646.CAP.CMP.02 Tyonek Completion Procedure (09-07-2004) ALL DATA RELATIVE TO THE TESTING OF THIS WELL IS CONFIDENTIAL. Note: This procedure commences with operations once work to cement the 4-1/2" production casing is complete. The cement was displaced from the production casing with 6% KCL water. 1. ABB Vetco to hang and pressure test 4-1/16", 10K rental frac tree with Udelhoven boom truck. Veco to finish tie-in of production flow line spool to 3-1/8", 5K wing flange connection. 2. MIRU Expro with 0.125" 00 wire. Hold Safety and environmental awareness meeting. Install packoff and flow tee. Connect packoff flow tee to flat tank with chicksan or have vac truck on location to handle 6% KCL water displaced from hole with tools and wireline. Perform wire twist test. PU tool string consisting of weight bars, roller stem, oil jars, and spang jars into lubricator. RIH w/3.80" gauge ring to tag and record PBTD. 3. If PBTD is below 10,900' MD, proceed to Step #4. Otherwise, MIRU BJ Coil Tech 1-3/4" coil tubing unit and Weatherford MHA, jars (Dailey 2-7/8" 00), 2-7/8" CT-PDM motor, and 3.80" 00 mill to cleanout to 10,970' MD (top of float collar) with fresh water. Perform Steps #5, #6, and #7 prior to cleaning out the wellbore. 4. MIRU Expro with packoff to run cement bond log. /Connect packoff flow tee to flat tank with chicksan or have vac truck on location to handle 6% KCL water displaced from hole with tools and wireline. Hold safety and environmental awareness meeting. PU and RIH with CBLlGRlCCL on wireline. Correlate MD to Reeves Shuttle Quad Combo open hole logs run 20-Aug-2004. Log from PBTD to 200' above cement top behind 4-1/2" casing (estimated at 5130' KB from cement volume pumped). RD Expro wireline. 5. Deliver clean 500 bbl. Rain-for-Rent tank, ±350 bbl. flow back tank, and MaC gas buster to location. Deliver MaC 2", 5K flowback skid (purchased from Vetco) and flowback chicksan to location. Deliver APC diesel fuel truck, 1000 gallon diesel tank, liner, and dunnage to location. Deliver Marathon methanol injection skid with double diaphragm and Haskel pump to location. Deliver Airport Rental 65 KW rental generator, two light plants, Model 185 air compressor with MaC air drier, and diesel-fueled manlift to location. Deliver two portable toilets, dumpster, and ASRC fork lift with fork extensions to location. Set gas buster on flow back tank and bind down with chains and boomers. 6. MIRU Powerwell Services well testers. NU Powerwell Services Testing 3-1/18", 5K companion flange with 3", 1502 connection to end of flowline spool flange downstream of SSV. Lay flow lines to separator and vent stack. Plumb in methanol injection line to flow back line and air lines to SSV. Ensure that SSV has a lock open plug and a needle valve attached. Load separator with ± 20 bbls glycol water. Deliver MaC 30" 10 vent stack and base and have Veco crane spot same. Pressure test Powerwell Services flowback lines to separator to 250/4000 psi with methanol water. Page 2 of3 e e 7. APC to lay liner and berm around for Powerwell Services Well Test separator, flow lines, vent stack, and diesel fuel truck. APC to lay liner and berm around Rain-for-Rent, MaC choke skid, and Veco flowback tank. Liner to be placed around wellhead and vicinity to be occupied by wireline and coil tubing equipment. 8. Hold PJSM. MIRU BJ Services 1-3/4" coil tubing unit and nitrogen pumper. ND 6-1/2" Otis connection from top of swab valve. Install BJ flow cross to top of 4-1/16", 5K swab valve. Have Veco crane pick up BJ coil tubing BOP. Flange up BOP to top of flow cross. Place coil tubing in injector head. Make up lubricator to injector head. Pick up injector head and lubricator with crane. Install slick wash nozzle on end of coil tubing and make proper pull test. Make up CT injector head and lubricator to BOP's. RU MaC 2" flowback line and a 5K choke manifold to BJ. Pressure test CT BOP pipe and blind rams with methanol or water, depending on ambient temperature, to 250 low/4000 high psi. Pressure test flowback iron to 250 low/4000 high psi. Displace methanol or water to tank with nitrogen. 9. Open well and RIH with coil tubing to PBTD unloading KCl water through Powerwell Services line to flowback tank with nitrogen. Note: Important to take initial and final flowback and fluid supply tank straps before and after runninq in with coil tubinq. POOH with coil tubing trapping 1200 psi nitrogen pressure at the wellhead. RDMO BJ Services coil tubing and nitrogen units. PROPOSED CLASS II TYONEK PERFORATIONS Measured Depth /" 'I 1 0,796-10'< 58 ft 10,671-10~: 36 ft TVD Surface Wellhead Pressure SBHP 50% DD 60% DD (0.469 psi/ft) 0.96 N2 0.57 2as 7,782' 7,646' 3650 3586 1060 1050 1220 1210 PROPOSED CLASS I TYONEK PERFORATIONS Measured Depth TVD Surface Wellhead Pressure SBHP 50% DD 60% DD (0.469 psi/ft) 0.96 N2 0.57 2as 10,242-10,330, 88 ft 7,299' 3423 1030 1160 10,161-10,181, 20 ft 7,163' 3359 1015 1140 1~~~-10,140, 76 ft 7,125' 3342 1015 1135 1~-10,031, 22 ft 7,026' 3295 1010 1125 10. RU Expro wireline service with full lubricator (pump in sub and flow tubes), and pressure control equipment. Hold safety and environmental awareness meeting. Blow nitrogen pressure down to 1220 psi WHP while running in the hole with the first perforating gun. PU and RIH with CCl and 3.375" HSD guns loaded 6 SPF 60 degree-phased with SDP-3125- 311 NT3 charges and PX-1 firing head. API target performance is 0.36" entrance hole and 40.25" penetration. Max gun swell in air is 3.625" aD. Correlate depth to Expro CBUGRlCCl log. Perforate 10,796-10,854' MD. RDMO Expro wireline. 11. Flow test well. No more than a 50% drawdown with nitrogen in the well bore or 60% drawdown with methane gas in well bore is permitted for the lowest open interval. Obtain stabilized flow within the 60% drawdown limit. The unloading rate up 4-1/2" casing is 5.0 MMCFGPD @ 1,200 psig FCP. Establish deliverability and obtain gas samples to determine gas analysis flowing well as per direction of onsite production engineer. Contact Houston Susan Dionne #2 Tyonek Completion Procedure KDW - 9/10/2004 4:48:16 PM Page 3 of3 e e Reservoir Engineering with transient test questions - Paul Williams 713-296-2379. Following clean up and constant gas rate, prepare for pressure transient work. 12. MIRU Pollard Wireline to run tandem pressure gauges on slickline. Install SPIDR or Data Trap gauge on tree cap flange. Houston Reservoir Engineering to provide gauge data collection sampling rate. Hold PJSM. RIH and set gauges on AO stop with bottom of gauges across perforations at 10,796-10,854' MD. Flow and then shut-in well per Houston Reservoir Engineering direction. 13. If the flow rate from perfs at 10.796-10.854' MD is 3 MMscfd or qreater. perforate 10,671- 10707' MD with 3-3/8" perforating guns observing perforating drawdown limits set forth above. Flow test both perforation intervals together. If combined rate is 5-6 MMscfd, prepare well for sales. If combined rate is below 5 MMscfd, fracture stimulate both intervals together with a water-based fluid and flow test for cleanup. The fracture stimulation design and procedure is forthcoming. Cleanout the casing with coil tubing if required. Add Class I perforations as needed to exceed minimum flow rate necessary to unload fluids from the well bore and meet gas sales objective. Proceed to Step # 15. 14. If the flow rate from perfs at 10.796-10.854' MD is below 3 MMscfd. fracture stimulate this interval alone with a water-based fluid and flow test for cleanup. The fracture stimulation design and procedure is forthcoming. Cleanout the casing with coil tubing if required. Perform PBU as per Step #12. a. If the frac results are unfavorable, set a CIBP (or frac plug) over this interval and jet the well dry with coil tubing, if necessary. Perforate 10,671-10707' MD with 3-3/8" perforating guns observing perforating drawdown limits set forth above. Flow test open perf interval(s). Add Class I perforations as needed to exceed minimum flow rate necessary to unload fluids from the well bore and meet gas sales objective. Proceed to Step # 15. b. If the frac results are favorable, set a frac plug over this interval and perforate 10,671- 10707' MD with 3-3/8" perforating guns. Fracture stimulate this interval alone with a water-based fluid and flow test for cleanup. The fracture stimulation design and procedure is forthcoming. Cleanout the casing with coil tubing if required. Perform PBU as per Step #12. Add Class I perforations as needed to exceed minimum flow rate necessary to unload fluids from the wellbore and meet gas sales objective. Proceed to Step # 15. 15. Following completion of testing. Lubricate in BPV's and winterize tree. Chain closed the master valves and secure the location. RDMO well testers. Release rental equipment and return to vendors. CONTACTS Ken Walsh: 907-283-1311 (w) 907-394-3060 (c) David Brimberry: 713-296-2265 (w) 713- 408-0703 (c) Ben Schoffinann: 907-565-3035 (w) 907-268-0122 (p) Paul Williams: 713-296-2379 (w) Ninilchik Operators: 907-260-7660 or 907-567-3248 (Susan Dionne Pad) KGF Operators: 907-283-1305 Susan Dionne #2 Tyonek Completion Procedure KDW - 9/10/2004 4:48:16 PM Susan Dionne #2 Wildcat Field 219' FSL, 1418' FEL, Sec. 6, TiS, R13W, 8M X:213.017.13 Zone 4 Y:2.236.705.03 Zone 4 GL: 135' KB: 156' (21' AGL) SF'UD: 07/29/04 TD: 06/19/2004 Riq Released: 00:00 hrs 8/26/2004 4-1/2" 12.6 ppf L-80 AB- Mod Butt tbg 7" X 4-1/2" annulus filled with 9.7 ppg mud. API # 50·133.20541.00 Permit# 204·107 WBS # DD.03.09646.CAP.CMP Propertv:ADL 959242/1 & ADL 389180 4-1/2" Short Joint Locations: 6904' - 6925' MD 8536' - 8557' MD I PSTD (Top of float collar) 10,970' MD/7890' TVD 20" 133 ppf K-55 driven to 119' 1/4" 00 0.049" wall Chemical injection string tied into Chemical injection Nipple top at 2400' w/double check valve and rupture discs 7" Casing Annulus TOC @ 4-1/2" Casing Annulus TOC @ Baker 4-1/2" Midstrin¡¡ ZXP Packer. Packer top @ 5733' MO/3290'TVO. 10,009'-10,031' MO (22') 3-3/8" 6 spf 7006'-7026' TVO 10,064'-10,140' MO (76') 3-3/8" 6 spf 7056'-7125' TVO 10,161'-10,181' MO (20') 3·3/8"6 spf 7145'-7163' TVO --------~--------------.,..-------------------- 10,242'-10,330' MO (88') 3-3/8" 6 spf 7219'-7299' TVO (36') spf spf FEL, Sec. 31, T1N, R13W, SM , M MARATHON ~ ~ Well bore Name SD#2 Well Name SD#2 Slot Name SD#2 Installation Name Susan Dionne Field Name Ninilchik Field Created By CommeritS e e MARATHON Oil Company,SD #2 Susan Dionne, Ninilchik Field,Kenai Peninsula, Alaska SURVEY LISTING Page 1 Wellbore: SD #2 Wellpath: MWD <0-11094> Date Printed: 23-Aug-2004 '&i. IIAKIR HUGHES INTEQ I Grid NorthinQ 2236705.0300 I EastinQ I EastinQ I Created 5-AuQ-2004 I Last Revised 22-AuQ-2004 I Government ID I Last Revised 19-May-2004 I Grid EastinQ 213017.1300 I Latitude N60 6 47.4215 I LonQitude W151 34 23.4462 I North 311.33N I East 1427.16W J NorthinQ I Coord System Name I North AliQnment 214436.499 2236359.987j AK-4 on NORTH AMERICAN DATUM 1927 datu~ True j NorthinQ 226657.848 I Coord System Name I North AIiQnment 2252005.1181 AK-4 on NORTH AMERICAN DATUM 1927 datu~ True All data is in Feet unless otherwise stated J Coordinates are from Slot MD's are from Rig and TVD's are from Rig ( Datum #2 156.0ft above Mean Sea Level) Vertical Section is from O.OON O.OOE on azimuth 324.46 degrees Bottom hole distance is 6631.10 Feet on azimuth 323.91 degrees from Wellhead Calculation method uses Minimum Curvature method Prepared by Baker Hughes Incorporated e e M MARATHON MARATHON Oil Company,SD #2 Susan Dionne, Ninilchik Field,Kenai Peninsula, Alaska SURVEY LISTING Page 2 Well bore: SD #2 Wellpath: MWD <0-11094> Date Printed: 23-Aug-2004 rCi. IlAIO!R IIUGIIES INTEQ ~ Wellpath (Grid) Report MD[ft] Inc[deg] Azi[deg] TVD[ft] North[ft] East[ft] Dogleg Vertical Easting Northing IdeQ/100ftl Sectionlftl 0.00 0.00 0.00 0.00 O.OON O.OOE 0.00 0.00 213017.1~ 2236705.0~ 132.00 0.40 23.90 132.00 0.42N 0.19E 0.30 0.23 213017.3~ 2236705.41 192.00 0.60 10.80 192.00 0.92N 0.33E 0.38 0.56 213017 .4~ 2236705.9' 252.00 3.30 346.50 251.96 2.91N 0.01W 4.61 2.38 213017.H 2236707.9' 312.00 6.20 345.90 311.74 7.73N 1.21W 4.83 6.99 213016.1' 2236712.n 373.00 7.70 346.20 372.29 14.90N 2.98W 2.46 13.86 213014.5C 2236719.9¡ 433.00 8.70 347.40 431.68 23.23N 4.93W 1.69 21.77 213012.7t 2236728.31 493.00 12.00 345.60 490.70 33.70N 7.47W 5.53 31.77 213010.4E 2236738.9( 553.00 14.60 340.30 549.08 46.87N 11.58W 4.78 44.86 213006.61 2236752.1E 614.00 15.80 337.30 607.95 61.77N 17.37W 2.35 60.36 213001.2~ 2236767. H 674.00 18.00 336.00 665.36 77.77N 24.30W 3.72 77.41 212994.6¡ 2236783.3E 733.00 21.40 335.10 720.89 95.87N 32.54W 5.79 96.92 212986.8~ 2236801.6- 794.00 24.60 332.60 777.04 117.24N 43.07W 5.48 120.44 212976.8E 2236823.2E 860.00 28.10 330.70 836.17 143.00N 57.00W 5.45 149.50 212963.51 2236849.31 922.00 31.10 330.10 890.08 169.62N 72.13W 4.86 179.95 212949.01 2236876.3. 985.00 33.20 329.70 943.41 198.62N 88.95W 3.35 213.33 212932.9~ 2236905.7' 1048.0C 33.70 329.60 995.98 228.59N 106.50V\ 0.80 247.91 212916.1' 2236936.m 1111.00 34.80 329.40 1048.05 259.14N 124.49V\ 1.76 283.23 212898.8- 2236967.0E 1172.00 36.80 329.20 1097.52 289.82N 142.71V\ 3.28 318.78 212881.3E 2236998.1 E 1235.00 38.70 329.50 1147.34 323.00N 162.37V\ 3.03 357.21 212862.5( 2237031.8( 1297.0C 40.70 328.90 1195.04 357.01 N 182.65V\ 3.28 396.68 212843.0~ 2237066.2¡ 1359.0C 42.30 328.90 1241.47 392.19N 203.87V\ 2.58 437.63 212822.6E 2237101.9E 1421.0C 45.30 329.50 1286.21 429.05N 225.84V\ 4.88 480.39 212801.5i 2237139.3~ 1484.0C 47.80 330.00 1329.54 468.55N 248.87V\ 4.01 525.93 212779 .4~ 2237179.31 1547.0C 49.70 330.40 1371.07 509.66N 272.41V\ 3.05 573.06 212756.9~ 2237221.0; 1609.0C 52.20 330.40 1410.13 551.52N 296.19V\ 4.03 620.94 212734.1E 2237263.4' 1673.0C 54.90 330.60 1448.15 596.32N 321.53V\ 4.23 672.13 212709 .8~ 2237308.8~ 1735.0C 57.40 331.10 1482.68 641 .29N 346.61V\ 4.09 723.30 212685.8~ 2237354.31 1797.0C 60.10 330.70 1514.85 687.60N 372.39V\ 4.39 775.97 212661.2. 2237401.2¡ 1859.0C 62.90 331.30 1544.43 735.25N 398.80V\ 4.60 830.09 212635.9t 2237449.5E 1955.0C 62.20 331.70 1588.68 810.12N 439.45V\ 0.82 914.64 212597.0~ 2237525.31 2078.0C 62.80 330.70 1645.47 905.72N 492.01V\ 0.87 1022.99 212546.8. 2237622.2( 2202.0(", 63.30 330.20 1701.67 1001.871\ 546.52V\ 0.54 1132.92 212494.6' 2237719.6; 2326.0C 63.20 330.80 1757.49 1098.251\ 601.05V\ 0.44 1243.03 212442.4C 2237817.2E 2453.0(", 64.10 330.50 1813.86 1197.44t-., 656.83V\ 0.74 1356.17 212389.0C 2237917.7E 2578.00 62.80 330.40 1869.12 1294.711\ 711.98V\ 1.04 1467.38 212336.H 2238016.3' 2703.0Q 64.60 330.60 1925.11 1392.241\ 767.15V\ 1.45 1578.81 212283.3- 2238115.1: 2827.0C 63.70 329.80 1979.17 1489.081\ 822.61V\ 0.93 1689.84 212230.2' 2238213.2E 2952.00 64.80 329.80 2033.4!! 1586.381\ 879.24V\ 0.88 1801.94 212175.9' 2238311.81 3077.00 64.30 329.30 2087.2C 1683.68t-., 936.44V\ 0.54 1914.36 212121.0- 2238410.5; 3200.00 64.50 329.50 2140.34 1779.16t-., 992.91V\ 0.22 2024.8!! 212066.8i 2238507.3' 3325.00 67.10 329.40 2191.58 1877.34N 1050.85\1\ 2.08 2138.45 212011.21 2238606.8- 3387.00 66.80 329.10 2215.85 1926.37N 1080.02\1\ 0.66 2195.3C 211983.21 2238656.51 3511.00 66.30 330.10 2265.20 2024.491\ 1137.59\1\ 0.84 2308.6C 211928.0E 2238756.0' 3636.0C 65.90 329.20 2315.84 2123.11N 1195.33\1\ 0.73 2422.41 211872.6¡ 2238855.91 3760.00 65.20 329.50 2367.17 2220.221\ 1252.88\1\ 0.61 2534.8!! 211817.41 2238954.4. 3885.00 64.20 329.20 2420.59 2317.44t-., 1310.49\1\ 0.83 2647.4!! 211762.H 2239052.9¡ 4010.0C 63.70 330.30 2475.48 2414.44N 1367.06\1\ 0.89 2759.3C 211707.9- 2239151.3' 4134.00 62.90 330.40 2531.2C 2510.72N 1421.86\1\ 0.65 2869.49 211655.41 2239248.8E 4258.00 62.20 331.10 2588.36 2606.72N 1475.63\1\ 0.75 2978.87 211603.91 2239346.1; 4384.00 61.40 331.20 2647.9C 2703.98N 1529.21\1\ 0.64 3089.16 211552.7: 2239444.6: All data is in Feet unless otherwise stated Coordinates are from Slot MD's are from Rig and TVD's are from Rig (Datum #2 156.0ft above Mean Sea Level) Vertical Section is from O.OON O.OOE on azimuth 324.46 degrees Bottom hole distance is 6631.10 Feet on azimuth 323.91 degrees from Wellhead Calculation method uses Minimum Curvature method Prepared by Baker Hughes Incorporated e e , , M MARATHON ~ j MARATHON Oil Company,SD #2 Susan Dionne, Ninilchik Field,Kenai Peninsula, Alaska SURVEY LISTING Page 3 Well bore: SD #2 Well path: MWD <0-11094> Date Printed: 23-Aug-2004 .i. --=- INTEQ Well path (Grid) Report MD[ft] Inc[deg] Azi[deg] TVD[ft] North[ft] East[ft] Dogleg Vertical Easting Northing IdeQ/100ftl Sectionlftl 4508.00 61.30 331.80 2707.35 2799.61 N 1581.14,^ 0.43 3197.15 211503.1 C 2239541.4 , 4633.00 63.80 331.20 2764.97 2897.091\ 1634.07,^ 2.04 3307.24 211452.5C 2239640.1, 4757.00 63.60 331.90 2819.91 2994.82N 1687.03,^ 0.53 3417.55 211401.8~ 2239739.1 < 4883.00 63.80 331.80 2875.7~ 3094.421\ 1740.32,^ 0.17 3529.57 211350.9E 2239839.9E 5005.00 63.20 332.30 2930.17 3190.87N 1791.49,^ 0.61 3637.79 211302.1. 2239937.6' 5128.0C 63.10 332.60 2985.n 3288.161\ 1842.25,^ 0.23 3746.47 211253.6~ 2240036.m 5252.00 62.30 332.40 3042.6C 3385.901\ 1893.13,^ 0.66 3855.57 211205.1 E 2240135.0' 5313.00 61.40 331.80 3071.3€ 3433.431\ 1918.29,^ 1.71 3908.88 211181.1< 2240183.1< 5374.00 60.90 331.20 3100.81 3480.39N 1943.79,^ 1.19 3961.91 211156.7E 2240230.6, 5437.0C 60.40 331.60 3131.6~ 3528.60N 1970.07,^ 0.97 4016.42 211131.6< 2240279.5C 5499.00 60.00 331.00 3162.5C 3575.79N 1995.91,^ 1.06 4069.8~ 211106.9. 2240327.2~ 5561.00 58.50 329.30 3194.2C 3622.00N 2022.42,^ 3.38 4122.85 211081.5. 2240374.1: 5623.00 57.30 329.10 3227.15 3667.12N 2049.31,^ 1.95 4175.19 211055.7' 2240419.8E 5685.00 55.20 328.60 3261.5~ 3711.23N 2075.98,^ 3.45 4226.59 211030.1C 2240464.6C 5747.0C 53.60 328.50 3297.6€ 3754.24N 2102.28,^ 2.58 4276.87 211004.8< 2240508.2: 5810.00 51.70 327.70 3335.9C 3796.76N 2128.74,^ 3.18 4326.85 21 0979 .3~ 2240551.31 5872.0C 50.40 327.40 3374.88 3837.45N 2154.61,^ 2.13 4374.99 210954.5C 2240592.61 5912.00 50.00 326.60 3400.4€ 3863.22N 2171.34,^ 1.83 4405.69 210938.3E 2240618.8' 5966.00 48.70 326.50 3435.66 3897.40N 2193.93,^ 2.41 4446.6~ 210916.6. 2240653.5: 6029.00 47.00 326.60 3477.94 3936.37N 2219.67,^ 2.70 4493.31 210891.8' 2240693.0~ 6091.0C 45.70 326.90 3520.7:.' 3973.89N 2244.27,^ 2.13 4538.1~ 210868.1 ' 2240731 .1E 6154.0C 42.70 325.10 3565.89 4010.30N 2268.81,^ 5.16 4582.03 210844.4f 2240768.1, 6216.00 41.90 323.30 3611.75 4044.15N 2293.21,^ 2.34 4623.75 210820.8E 2240802.5~ 6278.0C 40.70 321.10 3658.33 4076.48N 2318.28,^ 3.04 4664.6~ 210796.5E 2240835.5' 6340.0C 39.60 320.00 3705.72 4107.35N 2343.68,^ 2.11 4704.52 210771.9' 2240866.9, 6402.00 37.40 318.50 3754.2~ 4136.59N 2368.86,^ 3.85 4742.95 210747.4< 2240896.8' 6464.0(, 36.10 317.50 3803.92 4164.161\ 2393.68,^ 2.31 4779.81 210723.2E 2240924.9E 6526.0C 34.90 316.60 3854.39 4190.521\ 2418.20,^ 2.11 4815.51 21 0699.3~ 2240951.8~ 6589.0C 33.70 314.30 3906.4~ 4215.821\ 2443.10,^ 2.80 4850.57 210675.1 C 2240977.7E 6651.0C 32.20 312.30 3958.47 4238.951\ 2467.63,^ 2.99 4883.65 210651.1< 2241 001.4~ 6713.0C 30.20 310.50 4011.5C 4260.201\ 2491.71,^ 3.56 4914.9~ 210627.5E 2241023.3C 6775.0(, 28.80 309.30 4065.46 4279.791\ 2515.12,^ 2.45 4944.49 210604.6. 2241043.4< 6837.00 27.10 309.30 4120.22 4298.191\ 2537.61,^ 2.74 4972.5~ 210582.5E 2241062.3E 6899.00 27.20 309.80 4175.39 4316.211\ 2559.42,^ 0.40 4999.87 210561 .2C 2241080.9' 6961.0(, 25.30 308.60 4231.0C 4333.551\ 2580.67,^ 3.18 5026.3:: 210540.3E 2241098.7< 7024.00 25.60 307.40 4287.81; 4350.211\ 2602.00,^ 0.95 5052.2~ 210519.4f 2241115.9' 7086.00 26.10 306.80 4343.6€ 4366.521\ 2623.56,^ 0.91 5078.0~ 210498.2E 2241132.7< 7147.00 26.20 307.20 4398.4~ 4382.701\ 2645.03,^ 0.33 5103.7~ 210477.2C 2241149.4' 7210.0C 24.30 310.60 4455.42 4399.541\ 2665.95,^ 3.79 5129.61 210456.6E 2241166.71 7272.00 25.10 309.30 4511.7~ 4416.171\ 2685.82,^ 1.56 5154.6€ 210437.2. 2241183.81 7335.0C 25.20 309.30 4568.77 4433.131\ 2706.54,^ 0.16 5180.5:: 210416.9· 2241201.3C 7397.00 23.30 310.30 4625.3C 4449.431\ 2726.10,^ 3.14 5205.16 210397.7< 2241218.01 7459.00 23.70 309.30 4682.16 4465.251\ 2745.10,^ 0.91 5229.07 210379.1 < 2241234.3: 7522.00 24.10 308.80 4739.75 4481.331\ 2764.92,^ 0.71 5253.68 21 0359.6~ 2241250.8, 7585.00 24.40 307.70 4797.19 4497.34N 2785.24,^ 0.86 5278.52 210339.7E 2241267.3E 7648.00 24.60 307.10 4854.52 4513.211\ 2805.99,^ 0.51 5303.5C 21 0319.3~ 2241283.7: 7709.0C 25.00 306.30 4909.9C 4528.50N 2826.51,^ 0.86 5327.87 210299.2< 2241299.5C 7772.0C 25.60 305.30 4966.85 4544.25N 2848.35,^ 1.17 5353.37 210277.n 2241315.7E 7834.0C 25.80 305.80 5022.72 4559.88N 2870.22,^ 0.48 5378.81 21 0256.2~ 2241331.9· 7896.00 25.70 304.60 5078.56 4575.41 N 2892.23,^ 0.86 5404.23 210234.6E 2241347.91 7958.0C 25.80 303.80 5134.41 4590.55N 2914.51,^ 0.58 5429.5C 210212.71 2241363.6: All data is in Feet unless otherwise stated Coordinates are from Slot MD's are from Rig and TVD's are from Rig (Datum #2 156.0ft above Mean Sea Level) Vertical Section is from O.OON O.OOE on azimuth 324.46 degrees Bottom hole distance is 6631.10 Feet on azimuth 323.91 degrees from Wellhead Calculation method uses Minimum Curvature method Prepared by Baker Hughes Incorporated !- ..- e e M MARATHON ~ ~ MARATHON Oil Company,SD #2 Susan Dionne, Ninilchik Field,Kenai Peninsula, Alaska SURVEY LISTING Page 4 Well bore: SD #2 Wellpath: MWD <0-11094> Date Printed: 23-Aug-2004 .¡. BAKER HUGIIIS' INTEQ Well path (Grid) Report MD[ft] Inc[deg] Azi[deg] TVD[ft] North[ft] East[ft] Dogleg Vertical Easting Northing IdeQ/100ftl Sectionlftl 8022.00 25.40 303.20 5192.12 4605.811\ 2937.5711\ 0.74 5455.33 210190.0E 2241379.4~ 8084.00 25.80 302.80 5248.04 4620.401\ 2960.0311\ 0.70 5480.26 210167.9E 2241394.5E 8147.00 25.80 302.70 5304.76 4635.231\ 2983.1011\ 0.07 5505.72 210145.2< 2241409.9~ 8211.00 23.20 306.10 5362.9£ 4650.191\ 3005.0111\ 4.62 5530.64 210123.7C 2241425.4C 8272.00 23.20 305.80 5419.06 4664.301\ 3024.4611\ 0.19 5553.42 210104.5E 2241439.9E 8335.00 22.70 306.70 5477.0e 4678.821\ 3044.2711\ 0.97 5576.76 210085.1~ 2241454.9E 8396.00 22.00 309.20 5533.4£ 4693.071\ 3062.5611\ 1.94 5598.99 210067.H 2241469.6< 8459.00 21.60 310.90 5591.9£ 4708.131\ 3080.4711\ 1.19 5621.65 210049.6< 2241485.1' 8521.00 22.00 310.70 5649.56 4723.171\ 3097.9011\ 0.66 5644.02 210032.5E 2241500.5; 8583.00 22.50 309.90 5706.94 4738.351\ 3115.8111\ 0.94 5666.n 210015.0< 2241516.1; 8645.00 22.30 308.60 5764.26 4753.301\ 3134.1011\ 0.86 5689.5S 209997.m 2241531.5E 8707.00 22.40 307.80 5821.6C 4767.88N 3152.6311\ 0.52 5712.21 209978.9~ 2241546.5; 8769.00 22.90 307.50 5878.82 4782.47N 3171.5311\ 0.83 5735.07 209960.3; 2241561.6C 8830.0C 23.30 306.10 5934.92 4796.80N 3190.7011\ 1.11 5757.87 209941.5E 2241576.3E 8892.00 23.50 305.30 5991.82 4811.171\ 3210.6911\ 0.61 5781.18 209921.9C 2241591.2~ 8955.00 23.20 307.20 6049.67 4825.931\ 3230.8311\ 1.29 5804.9C 209902.1 ~ 2241606.4E 9017.0C 23.40 307.20 6106.62 4840.751\ 3250.3611\ 0.32 5828.32 209882.9E 2241621.7E 9081.0C 23.30 306.80 6165.3S 4856.02N 3270.6211\ 0.29 5852.51 209863.0E 2241637.4! 9143.00 23.70 305.90 6222.23 4870.671\ 3290.5311\ 0.87 5876.01 209843.5C 2241652.6· 9204.00 24.00 306.40 6278.02 4885.221\ 331 0.4511\ 0.59 5899.43 209823.9< 2241667.6: 9265.0Q 24.70 307.60 6333.6<: 4900.361\ 3330.5311\ 1.41 5923.42 209804.2~ 2241683.2< 9331.00 24.80 306.50 6393.53 4917.011\ 3352.5911\ 0.71 5949.78 209782.5; 2241700.4· 9393.00 25.20 305.50 6449.73 4932.41N 3373.7811\ 0.94 5974.63 209761.7E 2241716.3· 9455.00 25.80 304.50 6505.6£ 4947.71 N 3395.6511\ 1.19 5999.8C 209740.2E 2241732.1: 9517.00 26.00 303.40 6561.46 4962.84N 3418.1111\ 0.84 6025.16 209718.1 E 2241747.7! 9578.00 26.70 303.80 6616.12 4977.821\ 3440.6611\ 1.18 6050.46 209695.9; 2241763.3C 9639.0C 25.80 307.50 6670.83 4993.531\ 3462.5911\ 3.06 6075.99 209674.4~ 2241779.5: 9701.00 25.10 310.30 6726.82 5010.251\ 3483.3211\ 2.24 6101.64 209654.m 2241796.7: 9763.00 24.80 311.80 6783.03 5027.42N 3503.0411\ 1.13 6127.08 209634.7! 2241814.3; 9827.0C 24.70 311.60 6841.15 5045.241\ 3523.0511\ 0.20 6153.21 209615.2· 2241832.6; 9889.0C 24.80 310.90 6897.46 5062.361\ 3542.5611\ 0.50 6178.4S 209596.1· 2241850.2< 9951.0C 25.00 310.20 6953.7C 5079.331\ 3562.4011\ 0.57 6203.82 209576.6E 2241867.6E 10013.0C 24.70 309.60 7009.96 5096.041\ 3582.3911\ 0.63 6229.04 209557.1 C 2241884.8E 10076.0C 24.70 309.60 7067.1£ 5112.821\ 3602.6711\ 0.00 6254.4e 209537 .2~ 2241902.1 ~ 10138.0C 24.10 311.90 7123.65 5129.531\ 3622.0711\ 1.81 6279.36 209518 .2~ 2241919.2! 10200.0C 23.90 311.90 7180.3C 5146.371\ 3640.8411\ 0.32 6303.97 209499.8E 2241936.5; 10262.0C 23.90 31 0.70 7236.9S 5162.951\ 3659.7111\ 0.78 6328.43 209481.3! 2241953.5! 10324.0C 24.00 311.20 7293.64 5179.451\ 3678.7211\ 0.36 6352.9C 209462.7E 2241970.5< 10387.0C 23.90 310.50 7351.22 5196.171\ 3698.0711\ 0.48 6377.76 209443.8< 2241987.7~ 10449.0C 23.60 310.80 7407.97 5212.441\ 3717.0111\ 0.52 6402.01 209425.2E 2242004.4: 10511.0C 23.80 310.10 7464.74 5228.611\ 3735.9711\ 0.56 6426. H! 209406T 2242021.0E 10574.0C 22.80 309.40 7522.6C 5244.541\ 3755.1311\ 1.65 6450.2£ 209387.9< 2242037.4: 10636.0C 22.20 309.50 7579.8€ 5259.62N 3773.4511\ 0.97 6473.2C 209369.9E 2242052.9< 10698.0C 21.70 308.80 7637.3£ 5274.25N 3791.4211\ 0.91 6495.56 209352.3E 2242068.0C 10760.0C 21.80 307.60 7694.97 5288.46N 3809.4811\ 0.74 6517.61 209334.6E 2242082.6: 10822.0C 21.70 306.50 7752.56 5302.30N 3827.8111\ 0.68 6539.53 209316.6E 2242096.9C 10884.0C 21.30 306.60 7810.24 5315.831\ 3846.0711\ 0.65 6561.15 209298.7< 2242110.8; 10946.0C 21.00 305.70 7868.07 5329.03N 3864.1311\ 0.71 6582.39 209280.9E 2242124.4! 11007.0C 20.20 305.10 7925.17 5341.46N 3881.6211\ 1.36 6602.68 209263.7! 2242137.3< 11026.0C 20.00 305.20 7943.01 5345.22N 3886.9611\ 1.07 6608.84 209258.5< 2242141.2~ 11094.0C 20.00 305.20 8006.91 5358.63N 3905.9711\ 0.00 6630.79 209239.8E 2242155.OE All data is in Feet unless otherwise stated Coordinates are from Slot MD's are from Rig and TVD's are from Rig (Datum #2 156.0ft above Mean Sea Level) Vertical Section is from O.OON O.OOE on azimuth 324.46 degrees Bottom hole distance is 6631.10 Feet on azimuth 323.91 degrees from Wellhead Calculation method uses Minimum Curvature method Prepared by Baker Hughes Incorporated e e M' 0 MARATHON Oil Company,SD #2 Susan Dionne, ~MARATHON Ninilchik Field,Kenai Peninsula, Alaska SURVEY LISTING Page 5 Well bore: SD #2 Wellpath: MWD <0-11094> Date Printed: 23-Aug-2004 r.¡. BAKER HUGHES INTEQ Comments MOrftl I TVDrftl I Northrftl I Eastfftl I Comment 11094.od 8006.91 5358.63N 3905.97\I'J Proiection to TO Hole Sections Diameter Start [inl MOrftl 12 1/4 81/2 7.000 Start TVDrftl 0.00 1927.0C 5962.0C Start Northrftl 0.00 O.OON 1575.67 788.30N 3433.02 3894.89N Start End End Eastfftl MDrftl TVDrftl O.OOE 1927.0C 1575.67 427.67V\i 5962.0C 3433.02 2192.27V\ 11094.0C 8006.91 End Start Wellbore North[ftl Eastfftl 788.30N 427.67V\i SD #2 3894.891\ 2192.27V\ SD #2 5358.631\, 3905.97V\ SD #2 Casings Name Top Top Top Top Shoe Shoe Shoe Shoe Wellbore MOrftl TVDrft1 North[ftl Eastfftl MDrftl TVDrft1 Northrftl Eastfftl 9 5/8" CasinQ 0.00 0.00 O.OON O.OOE 1927.0C 1575.66 788.30N 427.67V1. SD #2 7.000in CasinQ 0.00 0.00 O.OON O.OOE 5942.0C 3419.91 3882.301\ 2183.94V\ SD #2 4 1/2in CasinQ 0.00 0.00 O.OON O.OOE 11094.0C 8006.91 5358.631\ 3905.97V\ SD #2 All data is in Feet unless otherwise stated Coordinates are from Slot MD's are from Rig and TVD's are from Rig (Datum #2 156.0ft above Mean Sea Level) Vertical Section is from O.OON O.OOE on azimuth 324.46 degrees Bottom hole distance is 6631.10 Feet on azimuth 323.91 degrees from Wellhead Calculation method uses Minimum Curvature method Prepared by Baker Hughes Incorporated " lID.F !Æ ~!Æ~ ø AI,ASIiA OILAlQ) GAS CONSERVATION COMMISSION Willard Tank Advanced Senior Drilling Engineer Marathon Oil Company P.O. Box 196168 Anchorage, Alaska 99519-6168 FRANK H. MURKOWSKI, GOVERNOR 333 W. "JTH AVENUE, SUITE 100 ANCHORAGE, ALASKA 99501-3539 PHONE (907) 279-1433 FAX (907) 276-7542 Re: Ninilchik: Susan Dionne #2 Marathon Oil Company Permit No: 204-107 Surface Location: 219' FSL, 1418' FEL, SEC. 6, TIS_ R13W, S.M. Bottomhole Location: 330' FSL, 1210' FEL, SEC. 31, TIN, R13W, S.M. Dear Mr. Tank: Enclosed is the approved application for permit to drill the above referenced development 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. Marathon Oil 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. Operations must be conducted in accordance with AS 31.05 and Title 20, Chapter 25 of the Alaska Administrative Code unless the Commission specifically authorizes a variance. Failure to comply with an applicable provision of AS 31.05, Title 20, Chapter 25 'of the Alaska Administrative Code, or a Commission order, or the terms and conditions of this permit may result in the revocation or suspension of the permit. e se provide at least twenty-four (24) hours notice for a representative of the Commissio 0 'tness any required test. Contact the Commission's petroleum field inspector at (907) 65 - (pager). ----- BY ORDER <?~ '9fE COMMISSION DATED this~"'ðay of June, 2004 cc: Department ofFish & Game, Habitat Section w/o encl. Department of Environmental Conservation w/o encl. . 'M..') Marathon . .MARATHON Oil Company . Alaska Region Domestic Production P.O. Box 196168 Anchorage, AK 99519-6168 Telephone 907/561-5311 Fax 907/564-6489 June 16, 2004 John Norman Commissioner State of Alaska Alaska Oil & Gas Conservation Commission 333 West ih Ave, Suite 100 Anchorage, AK 99501 Reference: Drilling Permit Application Field: Ninilchik Well: Susan Dionne #2 I?12C12/I/12D A~\,,·. . J{JA¡ 7 ¡Ç ...~~ ()¡j ~ ~ '~"f14 .~ 1& ., Dear Mr. Norman Enclosed please find the PERMIT TO DRILL application, along with the associated attachments and filing fee of $100. The intent is to drill a Tyonek development well. If you require further information, I can be reached at 907-564-6310 or bye-mail at wjtank@marathonoil.com. Sincerely, k~~~ Willard J. Tank Advanced Senior Drilling Engineer Enclosures OR1Gf¡'\IAI·· . , ,~,! \1 1a. Type of Work: 2. Operator Name: 3. Address: _ STATE OF ALASKA I AuWA OIL AND GAS CONSERVATION COMI'V, "SION PERMIT TO DRILL 20 MC 25.005 \1 b. Current Well Class: Exploratory 0 Development Oil A:J Multiple Zone ~ Stratigraphic Test 0 Service 0 Development Gas [] Single Zone 0 5. Bond: Blanket [] Single Well 0 11. Well Name and Number: Bond No. 5194234 J..t:.c... .!....s. <:::'0. Susan Dionne #2 ./ 6. Proposed Depth: 12. Field/Pool(s): MD: 11,094 TVD: 8,003 Ninilchik I Tyonek 7. Property Designation: ADL 359242/1 & ADL 389180 8. Land Use Permit: Drill ~ Redrill 0 Re-entry 0 Marathon Oil Company P.O. Box 196168, Anchorage, AK 99519-6168 4a. Location of Well (Governmental Section): Surface: 219' FSL, 1,418' FEL, Sec. 6, T1S, R13W, S.M. Top of Productive Horizon: 4,069' FSL, 3,576' FEL, Sec. 6, T1S, R13W, S.M. Total Depth: 330' FSL, 1,210' FEL, Sec. 31, T1N, R13W, S.M. 4b. Location of Well (State Base Plane Coordinates): Surface:x-213,017.13 y- 2,236,705.03 Zone- 4 16. Deviated wells: Kickoff depth: 250 feet Maximum Hole Angle: 63.53 degrees 18. Casing Program: Size Casing 20" Hole Driven 12 1/4" 8112f (7 æ' 7"; t'2" 19. Total Depth MD (ft): Casing Structural Conductor Surface Intermediate Production Liner Perforation Depth MD (ft): PRESENT WELL CONDITION SUMMARY (To be completed for Redrill and Re-Entry Operations) f? E: C J:::I_I~", Total Depth TVD (tJ): Plugs (measured): Effect. Depth MD (ft): Effect. Depth TVD (~-~ ·''''CUured): ,/lli/ ' .Iii~ """"", FiI, '., ; Ii (j Q¡lt'~ ,. TVD A ~ íI1t1¡~. Ccn¡tnÍik... ~n Specifications Weight Grade Coupling Length 133 K-55 PE 100' 47 L-80 BTC 1,879' 26 L-80 BTC 5,909' 12.6 L-80 BTC 11,073' Length Size W ú /I- ¿, Inl z.L)04- 13. Approximate Spud Date: July 20, 2004 ,/ 9. Acres in Property: 14. Distance to Nearest 731 & 4,604 Property: 50 ft(ADL 384372/1) 10. KB Elevation 15. Distance to Nearest Well (Height above GL): (21' AGL) 156 feet Within Pool: 2,900 ft (SD #3) 17. Maximum Anticipated Pressures in psig (see 20 AAC 25.035) Downhole: 3,762 Surface: 2,003"/ Setting Depth Quantity of Cement c.f. or sacks Top Bottom MD TVD MD TVD 0' 0' 100' 100' 0' 0' 1,900' / 1,560' 0' O' 5,930' / 3,429' / 0' 0' 11,094' / 8,003' (including stage data) 393 sacks / 443 sacks / 694 sacks / Cement Volume Perforation Depth TVD (ft): Time v. Depth Plot U Drilling Fluid Program [] Date Contact . Filing Fee ~ BOP Sketch ~ Property Plat [] Diverter Sketch [] 21. Verbal Approval: Commission Representative: 22. I hereby certify that the foregoing is true and correct to the best of my knowledge. Signature #t/~AAIi ~. ~ Phone 907-338-2429 Date . / Commission Use Only Permit to Drill API Number· I Permit Approval. · fl" b ¡ . Number:.2.aS/ - /0,/ 50- ., , 3 ... 2. 0 S- ~ I Date: ( n ,C/\ if-. V Conditions of approval: \..k' 20. Attachments: Printed Name Willard J. Tank squired sulfide measures, 7...';00 fs'(. Yes Yes Shallow Hazard Analysis U 20 AAC 25.050 requirements 0 Drilling Program ~ Seabed Report 0 Title Advanced Senior Drilling Engineer June 16,2004 I See cover letter for other requirements. B ~:~ Yes 0 No ~ Yes ~ No 0 fh~f~ Submit inDuplicate Mud log required Directional survey required APPROVED BY THE COMMISSION Date: f.\ , ri t . . MARATHON MARATHON Oil COMPANY DRilliNG PROGRAM Ninilchik Field Susan Dionne #2 Original 6/16/04 Originator: Drilling Superintendent: North America Drilling Manager: W.J. Tank .dr).d P.K. BerQa B.J. Roy Page 1 of 13 . . Table of Contents General Well Data................................................................................................................................. ..................................3 Geologic Program Summary.................................................................................................................................... ...............3 Summary of Potential Drilling Hazards.................................................................................................................................. ..4 Formation Evaluation Summary.................................................................................... ....................................................... ...4 Drilling Program Summary............................................................................................................................... .......................5 Casing Program....................................................................................................................... ................................................6 Casing Design........................................................................................................................ .................................................6 Maximum Anticipated Surface Pressure........................................................................................... ......................................6 BOPE Program....................................................................................................................... .................................................8 Wellhead Equipment Summary............................................................................................................................ ..................9 Directional Program Summary .... ........................................................................................................................................ ....9 Directional Surveying Summary ............................................................................................................................................ 1 0 Drilling Fluid Program Summary........................................................................................................................................... 1 0 Drilling Fluid Specifications................................................................................................................... .................................11 Solids Control Equipment.............................................................................................................................. ........................11 Cement Program Summary...................................................................................................................................... .............12 Bit Summary................................................................................................................................ ..........................................12 Hydraulics Summary................................................................................................................................... .......................... 13 Formation Integrity Test Procedure....................................................................................................................... ............... .13 Page 2 of 13 General Well Data Well Name Surface Location Slot/Pad KB Elev. Ground Level Elev. Perm. Datum Water Depth Water Protection Depth Comments: . . Susan Dionne #2 LeaselLicense 219' FSL, 1,418' FEL, Sec. 6, T1S, R13W, S.M. DD.03.09646.CAP.DRL 7/20104 (est.) WBS Code Spud Date API No. Well Class Rig Contractor Rig Name Susan Dionne Pad Field Ninilchik 156 County/Province Kenai Peninsula 135 State I Country Alaska KB Total MD 11,094' NIA Total TVD 8,003' Development Glacier Drilling #1 Geoloaic Proaram Summary MD - RKB TVD - RKB Pore Pressure Pore Pressure Formation (ft) (ft) (psi) (ppg) Lithology Beluga (Not a Prod Target) 925 900 8.46 Sandstone Tyonek (Target) 5,929 3,428 8.46 Sandstone Tyonek T-2 (Target) 6,926 4,225 9.04 \ Sandstone Tyonek T-3 (Target) 8,560 5,706 9.04 Sandstone Comments: From Lease/Block Lines Latitude Longitude UTM North (Y) UTM East (x) Tolerance Directional Target Tyonek Tyonek T-2 Tyonek T-3 TO Comments: Surface Location Coordinates 219' FSL, 1,418' FEL, Sec. 6, T1S, R13W, S.M. 60006' 47.4215" 1510 34' 23.4462" 2,236,705.03' 213,017.13' Depth Horizontal Displacement (ft) .¡-N/-S .¡-El-W (Y) (X) 3,848 -2,156 4,299 -2,530 4,743 -3,059 5,431 -3,880 MD (ft) 5,929 6,926 8,560 11,094 TVD (ft) 3,428 4,225 5,706 8,003 Location 4,069' FSL, 3,576' FEL, Sec. 6, T1S, R13W, S.M. 4,519' FSL, 3,952' FEL, Sec. 6, T1S, R13W, S.M. 4,961' FSL, 4,471' FEL, Sec. 6, T1S, R13W, S.M. 330' FSL, 1,210' FEL, Sec. 31, T1N, R13W, S.M. Page 3 of 13 Possible Fluid Content Water Gas Gas Gas Tolerance (ft) Circle 250' radius Circle 250' radius Circle 250' radius Summary of Potential Drillina Hazards Hazard Event Bit or BHA balling in surface hole Minor amounts of torque in intermediate hole section Comments: Potential Hazards Statement . . Discussion Maintain high pump rates to keep bit and BHA clean. Use extra circulation time if necessary. Use good hole cleaning techniques with 5" drillpipe and higher pump rates. Add lubricant if necessary. To comply with state regulations the Potential Hazards section and the well shut-in procedures must be posted in the drillers dog house. The man on the brake (driller or relief driller) is responsible for shutting the well in (BOPE or diverter as applicable) as soon as warning signs of a kick are detected and an influx is suspected or confirmed. A copy of the approved permit to drill must be kept on location and be readily available to the AOGCC or BLM inspector. This well's primary objective is gas and no oil sands are expected to be encountered. No H2S is anticipated. Gas sands will be encountered from +1- 5,929' MD (3,428' TVD) to total depth of the well. These sands will run from normally pressured to slightly above normal. The Flo-Pro mud system that will be properly weighted to hydraulically control these sands. Also lost circulation materials will be available on location, if required. Formation Evaluation Summary Interval LWD Surface None 0' - 1,900' MD Intermediate None 1,900' - 5,930' MD Production None 5,930' - 11,094' MD Completion NIA Coring Requirements: None Comments: Electric Logs Mud Logs None None Quad Combo utilizing drill pipe shuttle. Pull GR-Neutron to surface inside casing. Quad Combo. Basic with GCA, shale density, temperature in and out, sample collection (10' samples). Basic with GCA, shale density, temperature in and out, sample collection (10' samples). NIA GR, CCL Page 4 of 13 . . Drillina Program Summary CONDUCTOR: 1. Drive 20" conductor to +1-100 ft. RKB. 2. Move in and rig up rotary drilling rig. 3. Install starting head 20" SLC x 21 1/4", 2M flanged. / 4. Nipple up 21 1/4", 2M diverter, 16" diverter valve, and 16" diverter line. 5. Function test diverter and diverter valve. SURFACE: 1. Drill a 12 1/4" hole to 1,900' MD (1,560' TVD) per the directional plan, utilizing 5" drill pipe. 2. Run and cement 9 5/8" casing. 3. Cut off 95/8" casing. ND diverter. 4. Install 9 5/8" slip lock connection X 11" 5M flanged multibowl wellhead. 5. NU 11" 5M X 13 5/8" adapter spool. NU 135/8" 5M BOP'S. Test BOP'S and choke manifold to 250/2,500 psi. /' 6. Set wear bushing. / 7. Test surface casing to 2,500 psi. INTERMEDIATE: 1. 2. 3. 4. 5. Drill out float equipment and 20' of new formation w/8 1/2" bit. CBU. / Test shoe to leak off. Estimated EMW is 18.3 ppg. Drill 8 1/2" directional hole to 5,930' MD (3,429' TVD) as per directional program, short tripping as required. /' At TD circulate hole clean. Make wiper trip. TOOH. RU logging company. Run open hole logs on 5" drill pipe utilizing the shuttle system. TOOH with logging tool. TIH with 8 1/2" bit on drill pipe while confirming good log data. TOOH laying down 5" d'!ÿ' pipe and RD logging company. Pull wear bushing. Run and cement 7" casing. Land hanger in multibowl wellhead. / Back out landing joint. Set wear bushing. Test casing to 2,500 psi. 6. 7. PRODUCTION: ~~. 1. PU 4 3/4" pilot bit, 6" X 7" DOSRW / and directional BHA on 4" drill pipe. Drill float equipment and 20' of new formation. CBU. C_ / 2. Test shoe to leak off. Estimated EMW 16.6 ppg. / 3. Drill a 7" hole to 11,094' MD (8,003' TVD) per the directional program, short tripping as required. 4. At TD circulate hole clean. Make wiper trip. TOOH. 5. RU logging company. Run open hole logs as per plan. RD logging company. 6. TIH w/6 1/8" tri-cone bit to TD for wiper trip. TOOH and laydown BHA and 4" drill pipe. Pull wear bushing. / 7. RU and run 41/2" casing with Baker Oil Tools 4 1/2" X 7" Mid-string ZXP Packer spaced out to 5,730' MD (200' above 7" intermediate shoe). ( 8. Cement 4 1/2" casing while reciprocating. Bump cement wiper plug to energize ZXP with pressure. WOC. / 9. PU 4 1/2" casing. PU BOP stack. Set slips. Cut 4 1/2" casing. 10. LD BOP. Set 41/2" packoff. NU 11" 5M X 31/8" 5M tubing head adapter and 31/8" 5M tree. Test tree to 5,000 psi. . 11. Rig down and move out drilling rig. / Note: Drill surface and intermediate hole sections with 5" drillpipe. Drill production hole section with 4" drillpipe. COMPLETION: Completion will be done without a rig. Page 5 of 13 . . Casing Program Casing Size (in) 95/8 7 MD (tt) Connection API Ratings ( ) c: Makeup ~ ,.... fi::- 0 ¡ "(j) ro <J) "(j) Weight O.D. Torque Hole Size :;, .9: = 0. c: g CD 8~ ( ) Top Bottom (Ibslft) Grade Type (in) (tt-Ibs) (in) to- Surface 1,900 47 K-55 BTC 10.625 NIA * 12 1/4 6,870 4,750 1,086 Surface 5,930 26 L-80 BTC 7.656 NIA * 81/2 7,240 5,410 604 Surface 11,094 12.6 L-80 BTC 5.0 NIA * 7 8,440 7,500 289 4Y> Comments: A 4 1/2" X 7" Mid-String ZXP Packer will be placed in the 4 1/2" monobore at approximately 5,730' MD (200' above the 7" casing shoe). This packer will be set by pressuring up after landing the wiper plug on the cement job. * The make up of the buttress connection will be to the proper mane Casing Design Casing Shoe Safety Factors CD c: Casing Setting Mud Wt Frac. Form Maximum Surface <J) 0. 0 Size Weight Depth When Set Grad Press Pressure ~ .!!! ¡j) Õ c: / :;, CD (in) (I bItt) Grade (TVD) (Ib/gal) (Ib/gal) (Ib/gal) (psi) CD Ü to- 95/8 47 K-55 1,560 9.4 18.3 8.46 754 4.31 4.91 4.10 7 26 L-80 3,429 9.6 16.6 8.46 2,003 2.40 2.59 2.80 4Y> 12.6 L-80 8,003 9.6 16.6 9.04 2,003 2.21 1.88 1.61 Comments: Maximum Anticipated Surface Pressure Setting Depth Casing Size TVD MAWP * ~ W ~~) 9 5/8 1,560 4,720 7 3,429 5,032 4 Y> 8,003 5,825 * MAWP = Maximum allowable working pressure MASP = Maximum anticipated surface pressure MASP ** MudlGas (psi) Ratio 754 30170 2,003 / 30/70 2,003 30/70 Comments: MASP I MAWP CALCULATIONS: Surface casinQ: 9 5/8" (1,900' MD, 1,560' TVD) MASPfrac = «Fracture gradient at shoe + S.F.) x .052 X TVDshoe) - Hydrostatic pressure of gas column at the shoe. MASPfrac = (18.3 ppg + 0.5 ppg) x .052 x 1,560' - (.1 psilft x 1,560') MASPfrac = 1 ,525 psi - 156 psi MASPfrac = 1 ,369 psi. Page 6 of 13 . . MASPbhp = BHPopen hole td - Hydrostatic pressure of mud portion - Hydrostatic pressure of gas portion MASPbhp = (8.46 ppg x .052 x 3,429') - (0.3 x 9.6 ppg x .052 x 3,429') - (0.7 x 0.1 psilft x 3,429') MASPbhp = 1,508 psi - 514 psi - 240 psi MASPbhp = 754 psi MASP = MASPbhp = 754 psi MAWP = (0.7 x Casing Burst) - (Mud Wt. - Backup Fluid Wt.) x .052 x TVD MAWP = (0.7 x 6,870) - (9.4 - 8.3) x .052 x 1,560' MAWP = 4,809 psi - 89 psi = 4,720 psi Intermediate casinç¡: 7" (5.930' MD, 3,429' TVD) MASPfrac = «Fracture gradient at shoe + S.F.) x .052 X TVDshoe) - Hydrostatic pressure of gas column at the shoe. MASPfrac = (16.6 ppg + 0.5 ppg) x .052 x 3,429' - (.1 psilft x 3,429') MASPfrac = 3,049 psi - 343 psi MASPfrac = 2,706 psi. MASPbhp = BHPopen holetd - Hydrostatic pressure of mud portion - Hydrostatic pressure of gas portion MASPbhp = (9.04 ppg x .052 x 8,003') - (0.3 x 9.6 ppg x .052 x 8,003') - (0.7 x 0.1 psi/ft x 8,003') MASPbhp = 3,762 psi - 1,199 psi - 560 psi MASPbhp = 2,003 psi MASP = MASPbhp = 2,003 psi MAWP = (0.7 x Casing Burst) - (Mud Wt. - Backup Fluid Wt.) x .052 x TVD MAWP = (0.7 x 7,240) - (9.6 - 9.4) x .052 x 3,429' MAWP = 5,068 psi - 36 psi = 5,032 psi Production casinq: 4 1/2" (11.094' MD. 8.003' TVD) MASPfrac = «Fracture gradient at shoe + S.F.) x .052 X TVDshoe) - Hydrostatic pressure of gas column at the shoe. MASPfrac = (16.6 ppg + 0.5 ppg) x .052 x 8,003' - (.1 psilft x 8,003') MASPfrac = 7,116 psi - 800 psi MASPfrac = 6,316 psi. MASPbhp = BHPopen holetd - Hydrostatic pressure of mud portion - Hydrostatic pressure of gas portion MASPbhp = (9.04 ppg x .052 x 8,003') - (0.3 x 9.6 ppg x .052 x 8,003') - (0.7 x 0.1 psilft x 8,003') MASPbhp = 3,762 psi - 1,199 psi - 560 psi MASPbhp = 2,003 psi MASP = MASPbhp = 2,003 psi MAWP = (0.7 x Casing Burst) - (Mud Wt. - Backup Fluid Wt.) x .052 x TVD MAWP = (0.7 x 8,440) - (9.6 - 9.4) x .052 x 8,003' MAWP = 5,908 psi - 83 psi = 5,825 psi Page 7 of 13 . BOPE Program Casing Casing Size (in) Casing Test Test Fluid Press Density (psi) (Ib/gal) MAWP (psi) MASP (psi) Surface 2,500 9.4 95/8 4,720 754 Intermediate 5,032 2,003 2,500 9.6 7 Production 4Y2 5,825 2,003 2,500 9.6 Comments: Blowout Preventers . BOPS Size & Rating (1) 13-5/8" 5M annular (1) 13-5/8" 5M pipe ram (1) 135/8" 5M blind ram (1) 13-5/8" 5M drilling spool with 3-118" 5M outlets (1) 13-5/8" 5M pipe ram (1) 13-5/8" 5M annular (1) 13-5/8" 5M pipe ram (1) 135/8" 5M blind ram (1) 13-5/8" 5M drilling spool with 3-118" 5M outlets (1) 13-5/8" 5M pipe ram (1) 13-5/8" 5M annular (1) 13-5/8" 5M pipe ram (1) 13 5/8" 5M blind ram (1) 13-5/8" 5M drilling spool with 3-118" 5M outlets (1) 13-5/8" 5M pipe ram Test Pressure Low/High (psi) 250/2,500 / 250/2,500/ 250/2,500 / The blowout preventer stack will consist of a 13-5/8" x 5000 psi annular preventer, a 13-5/8" x 5000 psi double gate ram type preventer with blind rams in the bottom and pipe rams in the top, a 13-5/8" x 5000 psi drilling spool (mud cross) with 3-118" x 5000 psi outlets, and a 13-5/8" x 5000 psi single pipe ram. The choke manifold will be rated 3-1/8" x 5000 psi. It will include a remote hydraulic actuated choke and a hand adjustable choke. Also included is a poor-boy gas buster, and a vacuum-type degasser. A flow sensor will be installed in the flowline and the mud pits will contain sensors to measure the volume of fluid in the surface mud system. Both sensors will contain readouts conveñient to the drillers console. Casing Test Pressures Casing test pressures are based on the lesser of (1) MASP, or (2) 70% of rated burst pressure of the casing adjusted for the mud weight used during the test less a 8.3 ppg back-up unless otherwise noted. Page 8 of 13 . . Wellhead Equipment Summary Component Description Casing Hanger Type 10 3/4" x 7" Fluted Mandrel Casing Head 11" 3M X 9-5/8" Slip Loc W/2, 2" LPO, Landing Base for 20" Conductor, U, AA, PSL 1, PR1 11" 3M Studded Bottom X 11" 5M Fig Top, W/2, 2-1/16" 5M Studded Outlets, U,AA,PSL 1 ,PR1 11" 5M X 4-1/16" 5M WI Seal Pocket and 3" H BPV Threads 11" x 41/2" Manual Slip Tubing Head Adapter Flange Comments: Directional Proaram Summary Build Turn Coordinates Sec. MD TVD Rate Rate Dogleg Inclination Azimuth +N/-S +E/-W VS No. Description (ft) (ft) (°/100') (°/100') ("/100') (deg) (deg) (ft) (ft) (ft) Tie On 0 0 0 0 0 0 0 0 0 0 2 KOP 250 250 0 0 0 0 0 0 0 0 3 Build up Section 4.0 0 4.0 331.00 4 End of Build 1,838.17 1,532.20 4.0 0 4.0 63.53 331.00 694.36 -384.82 788.70 5 Hold Section 0 0 0 63.53 331.00 6 End of Hold 5,294.79 3,073.08 0 0 0 63.53 331.00 3,400.69 -1,884.71 3,862.72 7 Drop Section -2.36 -1.29 2.5 310.00 8 End of Drop to the 6,926.14 4,225.00 -2.36 -1.29 2.5 25.00 310.00 4,299.15 -2,530.20 4,969.01 Target 9 TD 11,094.70 8,003.00 0 0 0 25.00 310.00 5,431.56 -3,879.75 6,674.90 Comments: Vertical section calculated from a reference azimuth of 324.46° taken from surface location to bottom hole location. Potential Well Interference: Well Susan Dionne #1 Susan Dionne #3 Distance (ft) 103.36 51.31 Depth (MD) 250 o No serious interference exists. See attached directional plan and anticollision analysis for more details. Page 9 of 13 ~ ¢' o o l!') £:::!. .s::: Õ. Q) I 0 ro ü 'e ~ Q) :::J ~ 7000 "1" r , i ' I , , I : I I r, I I j , J [ : 1 I o 1000 2000 3000 4000 5000 6000 7000 8000 Vertical Section at 324.460 [2500ftlin] Directional Survevin~ Summarv Interval 0-1,900' 1,900' - 5,930' 5,930' - 11,094' MWD Survey X X X Magnetic Multishot Comments: Drillinça Fluid Proçaram Summary Interval - TVD From To (ft) (ft) Density (Ib/gal) Fluid Description o 1,560 Gel I Gelex Spud Mud 8.6 - 9.4 1,560 3,429 6% Flo-Pro wI Safecarb 9.0 - 9.6 3,429 8,003 6% Flo-Pro wI Safecarb 9.0 - 9.6 Comments: West(-)/East(+) [2500ftlin] Gyro Multishot Comments Minimum Inventory Additives Gel, Gelex, Soda Ash, Caustic, Barite, Polypac Supreme UL Flo-Vis, PoluPac UL, KCI, SafeCarb F&M, Ashphasol Supreme, Lubetex, Caustic, Conqor 404, SafeScav NA Flo-Vis, DualFlo, KCI, Greencide 25G, SafeCarb F, Barite, Caustic, Conqor 404, SafeScav NA See mud prognosis for details. Sized CaC03 (SafeCarb) will be used to controlleakoff. Page 10 of 13 :§ ð o It) £:::!. +' :é 't:: o z 7 :é :; o ({) . . Drillina Fluid Specifications Interval - TVD LSRV From To Density Vis 1 min PV (ft) (ft) (Ib/gal) (seclqt) (lb.l10Off) (cP) 0 1,560 tl 60 - 100 NIA 1,560 3,429 30,000 8 - 12 3,429 8,003 .0-9. 30,000 10 - 14 Comments: yp Fluid Loss Drill Solids (lb/100 tf) (cc) pH (%) 25 - 35 NC - 12 +1- 9.5 <7 8 - 10 +1- 9.5 +1- 7.5 6-8 +1- 9.5 +1- 5 As a standard practice for long string completions, the drilling mud that will remain above the top of cement on the 4 %" production casing will be treated with corrosion inhibitor (Conqor 303A) at a concentration of 1 drum per 100 barrels of drilling fluid. See mud prognosis for details. Solids Control Eauipment c: 0 Q) .... :g ... ~ e> Q) Q) It! æ c: Q) Q £' .c It! C) " "C .... Q) ¿ CJ) CJ) CJ) .... ,g¡ u C) C) is ~ c: -¡: c: c: It! It! CJ) ëñ "C "E :e :w e .c Q) Q) ::! Q) ::! "5 Q) Interval (/) Q Q ~ Ü Ü Ü N Comments 0-11,094'MD X X X X Closed Loop System, Full Containment Item Shaker 2 - Derrick Model 2E48-90F-3TA Desander NIA Desilter 1 - Derrick Model 0522 Mud Cleaner NIA Centrifuge 2 - MI/Swaco units Cuttings Dryer NIA Cuttings Injection Marathon G&I Facility Zero Discharge NIA Equipment Specifications (quantity, design type, brand, model, flow capacity, etc) Comments: The solids control equipment will consist of two flowline cleaners, a desilter, and the MI centrifuge van. Included will be equipment to de-water the underflow from the mud processing equipment to allow for disposal of the cuttings and solids by slurrification and injection into the disposal well at the KGF. Page 11 of 13 . . Cement Proaram Summary Depth Gauge Top of Cement Open Casing Hole Ann Vol Slurry WOC Hole Size MD TVD Size MD TVD To TOC Vol Time Excess (in) (ft) (ft) (in) (ft) (ft) (ft3) (ft3) (hrs) (%) 95/8 1,900 1,560 121/4 0 0 705 987 8 50 7 5,930 3,429 81/2 1,800 1,515 525 781 8 50 4% 11,094 8,003 7 5,430 3,137 862 1,277 NIA 50 Mix Water Compressive Casing / Slurry TOC Strength Size Density Qty Yield Vol MD Qty WL FW (psi) (in) Slurry Cement Description (Ib/gal) (sx) (ft3/sx) (ft3) (ft) (gal/sx) Type (cc) (%) 8 hr 24 hr 95/8 Tail Type I Cement 12 393 2.51 987 0/ 11.28 Fresh Lead Class "G" 12.5 281 2.1 591 1 ,800/ 11.95 Fresh 7 Tail Class "G" 15.8 162 1.17 190 4,930 / 5.01 Fresh 41/2 Tail Class "G" 13.5 694 1.84 1,277 5,430 9.25 Fresh Comments: See cement prognosis for details and spacer specifications. Bit Summary Interval - MD Type From To Size (ft) (ft) (in) Manufacturer Model No. IADC 0 1,900 12 1/4 Christensen MX-1 115 1,900 5,930 81/2 Christensen HCM605 M323 5,930 11,094 43/4 Christensen DOSRWD46.000 M233 Comments: Recommended WOB (kips) RPM 1-4 80-350 Estimated Rotating Hours ROP (ftIhr) Up to 25 3-5 Motor 100 - 350 If a second bit is necessary for the 81/2" hole a MX-3 (IADC 137) should be used to finish this section. Back up bits for the 7" hole section will consist of 61/8" mill tooth and TCI tricone bits. See bit prognosis for additional information. Page 12 of 13 . . Hydraulics Summary Rig mud pumps available are shown below. Max Press @ Displacement @ Liner ID Stroke 90% WP 95% eft Max Rate Hole Sections Used Qty Make Model (in) (in) (psi) (gal/stroke) (spm/gpm) On 5 8 2,597 2.04 125/255 Surface National Oil 3 A600PT 5 8 2,597 2.04 125/255 Intermediate Well 5 8 2,597 2.04 125/255 Production Tabulated below are the expected flow rates, standpipe pressures and nozzle sizes for each hole section. Hole Standpipe Min Nozzle Depth-MD Size Pump Rate Pressure AV ECD Size (ft) (in) (gpm) (psi) (fpm) (Ib/gal) (32"s) Remarks o - 1,900 121/4 633 1,850 124 6 - 13's Actual Data from BC 12 (@ 1,405' MD) 1,900 - 5,930 81/2 460 1,500 239 5 -15's Actual Data from BC 12 (@ 7,183' MD) 5,930 - 11,094 7 310 1,700 230 4 -13's Actual Data from CLU 7 (@ 10,864' MD) Comments: See separate hydraulics calculations. 5" drill pipe will be used the surface and intermediate hole sections, 4" HT38 drill pipe will be used on the production hole section. Formation Inte~rity Test Procedure Surface and Intermediate casing shoes will be tested to Leak-off. Prior to drilling out of casing strings, test BOPs and casing to the specified pressure listed in the BOP Program section. Plot test and record volume required on the drilling report. Leak-off tests (LOT) are to be conducted as described below: 1. Drill 20' to 25' of new formation below the casing shoe and condition the mud to the same properties in and out. 2. Pull drill string into the casing shoe and close ram preventer, and line up to the choke manifold with a closed choke. 3. Begin slowly pumping fluid down the drill string at 1/2 bpm while recording casing and drillpipe pressures at 1/2 bbl intervals. A running plot of pressure versus volume should be kept by the drilling foreman while the test is in progress. 4. Stop pumping when the pressure curve departs form a straight line sufficiently to indicate leakage into the formation. Record as ppg equivalent mud density in the IADC and morning reports. 5. Monitor and plot pressure drop and time after shut-in for 10 minutes or until the shut-in pressure stabilizes. Page 13 of 13 . 121 1/4" 2M Diverter 1---. I Diverter Spool Marathon Oil Well Susan Dionne #2 Diverter "> I I" ~ I I /' ,; " . . I Flow line 116" Automatic Knife Valve ~//- / /' I I " \ "- I I í \ ,-------------- 116" Diverter Line . . Marathon Oil Well Susan Dionne #2 BOP Stack I Flow Nipple J - 1135/8" 5M Annular I Preventer ~ þ IFlow Line I I "> / I I I I > < 113 S/8" 5M Double Ram Preventer Ie -----... 121/16" 5M Ie Check Valve 121/16" SM Manually I \ operated/~ []I[J]]OI0JI]OI0JI]Œ Œ1[] 13 S/8" SM Cross I ~i: 113 5/8" 5M Single Ram Preventer e ~ ) I '" ) I" / I "- \ I Pipe Ram I ~ // I Blind Ram I ~ / 131/8" 5M Manually I Operated Valve < ) ,/ l~m[]@[[]OI0JI] t "' I I < / 13 1/8" 5M Hydraulically I Operated Valve I Pipe Ram I ~ < 14 / Bottom of Single gate must be 24-4S" from ground level for Glacier 1 rig placement. :------ 113 S/8" 5M x 13 5/8" 5M I = I l Drilling Spool í__________l13 5/8" 5M TUb;", Head Fla",e . . Marathon Oil Well Susan Dionne #2 Choke Manifold / TO Gas Buster ITO Blooey Line I I Bleed off Line to Shakers ~ ~ ~ ç==f ç==f ç==f ©)] [©) ] [~ 000 000 t::=J t::=J t::=J 1: ~ ~ ~ ~ ¡::=J ~ ç=:::J ---' []I@[][JI@~ ©) []I@[] '\ I ~ t 13" 5M Valves i 2 9/16" 10M Swaco 0 131/8" 5M Manually Hydraulically Operated Adjustable Choke Choke From BOP Stack . . Surface Use Plan for Susan Dionne #2 Surface location: Anticipated at219' FSL, 1,418' FEL, Sec. 6, T1S, R13W, S.M. 1) Existing Roads The Sterling Highway will be used for access to the Susan Dionne #2 well and is shown on the attached map. Ninilchik, Alaska is the nearest town to the site. 2) Access Roads to be Constructed or Reconstructed No new roads will be required to access Susan Dionne #2. 3) Location of existing wells Well Susan Dionne #2 will be drilled on Susan Dionne pad. A pad drawing is enclosed that shows existing wells and the proposed location of Susan Dionne #2. 4) Location of existing andlor proposed facilities The locations of existing production facilities on the Susan Dionne pad are shown on the enclosed pad drawing. A flowline will be installed from the Susan Dionne #2 wellhead to an existing heater and separator. 5) Location of Water Supply A water supply well exists on the pad that Susan Dionne #2 will be drilled from. This is shown on the pad drawing. 6) Construction Materials No construction is planned on the pad. 7) Methods of handling waste disposal; a) Mud and Cuttings Cuttings will be dewatered on location. The cuttings and excess mud will be hauled to Pad 41-18 of the Kenai Gas Field for disposal into Well KU 24-7, a Class 1/ disposal well (AOGCC Disposal Injection Order No.9, Permit #81-176). b) Garbage All household and approved industrial garbage will be hauled to the Kenai Peninsula Borough Soldotna Landfill. c) Completion Fluids Clear fluids will be hauled to Pad 34-31 of the Kenai Gas field and injected in Well WD #1, an approved disposal well (AOGCC Permit #7-194). d) Chemicals Unused chemicals will be returned to the vendors that provided them. Efforts will be . . made to minimize the use of all chemicals. e) Sewage Sewage will be hauled to the Kenai sanitation facility. 8) Ancillary Facilities A minimal camp will be established on the pad to house various supervisory and service company personnel. Approximately four trailer house type structures will be required for this purpose. Bottled water will be used for human consumption. Potable water will be obtained from the existing water well on the pad. Town & Country will collect and transport sanitary wastes to their ADC approved disposal facility. No additional structures will be necessary. 9) Plans for reclamation of the surface Susan Dionne #2 will be drilled from an existing pad. Reclamation of the pad, if required by the landowner, will occur after the abandonment of Susan Dionne #2 and the other existing wells on the pad. 10) Surface ownership Paul Dionne is the surface owner of the land at the Susan Dionne pad. 11) Operator's Representative and Certification I hereby certify that I, or persons under my direct supervision, have inspected the proposed drill site and access route; that I am familiar with the conditions that currently exist; that the statements made in this plan are, to the best of my knowledge, true and correct; and that the work associated with operations proposed herein will be performed by Marathon Oil Company and its contractors and subcontractors in conformity with this plan and the terms and conditions under which it is approved. This statement is subject to the provisions of 18 U.S.C. 1001 for the filing of a false statement. ~ / ¡. Date: ~/ /fp Òt.( Name and Title: :ftI~ ~ ~~ Willard J. Tank, Advanced Senior Drilling Engineer Marathon Oil Company P. O. Box 3128 Houston, TX 77253 (713) 296-3277 - , -- TRACTK ,. ..",-- " .--- DIONNE SID NO.2 X ///////// "0 / --_./ .,,-~ / r ,./ ~r::-___ / I "..... ~L --__::--.1 I // .......--___ " I _" ,--_ - I ) í- '" --J I , I SUSAN DIONNE , I WELL NO.2" I .", , Q " SUSAN DIONNE O. WELL NO.3 , , , : '" , SUS~mO~~~ ' : ' / I 219' I t____ Y 190' ./: __ I -- 143' / I --- ----_ L-- ----___ / I --~-_ I _--------__ - ----,- -------- ~ -- I / I / / I / I / / / / I I I I .... -- -- -- -- -- -- --- . , , / , , ""- , , ~ , , ""- , / '/ /^'- / , ¡ , ¡¡I '" TRACTJ DIONNE SID NO.2 , '" SEëïíÕÑÜÑE- - - - -~ - ~- 7"'-- - - - -- ~ / if ~ NOTES 1. BASIS OF COORDINATES IS NGS MONUMENTL82 AT MILEPOST 119.1 OF THE STERLING HIGHWAY. LATITUDE ANO LONGITUDE VALUES ARE FROM THE ADOT&PF GEOREFERENCING PROJECT GPS CONTROL POINTS. 2. BASIS OF VERTICAl CONTROL WAS FROM NGS MONUMENT L82 AT MILEPOST 119.1 OF THE STERLING HIGHWAY, ELEVATION~346.15 FEET (NAVO 88). 3. COOROINATE INFORMATION FOR SUSAN DIONNE WELL NO.2 IS BASED ON THE CENTER OF AN 8' DIA CSP WELL CELLAR. ~ ~ ~ . MARATHON OIL COMPANY IUtSIIlA ltBJIJN ~ Consulting C;roup ~Testing ENGINEERING I MAPPING I SURVEYING I TESTING P.O. BOX 468 SOLOOTNA, AK. 99669 VOICE: (907) 283-4218 FAX; (907) 283-3265 EMAIL: SAMCLANE@MCLANECG.COM . TRACT I DIONNE SID NO.2 , , ""- , , ""- , , ""- SCALE 100 I FEET 200 I o I , '",,- , , ""- I I I~ Iº .... 1m , , ""- , , ""- , '",,- , I I J ""-: ''"~ I , I '" t ""-, "'/'" g lg ß ß CIJ CIJ I I / 1418' ì , I , , I I , I I , , , I I / 1461' [j / 1488' r-- ----- _____¿CTION6 SECTIÕN-¡- - - - - - - - - ~ " SUSAN DIONNE WELL NO.1 NORTHING: 2236630.33 EASTING: 212945.60 LA T: 60"06'46.669" LONG: -151"34'24.822" SECTION 6 FROM SOUTH SECTION LINE: 143' FROM EAST SECTION LINE: 1488' ELEVATION: 134.T I ~ I SUSAN DIONNE WELL NO.2 NORTHING: 2236705.03 EASTING: 213017.13 LAT: 60"06'47.4215" LONG: -151"34'23.4462" SECTION 6 FROM SOUTH SECTION LINE: 219' FROM EAST SECTION LINE: 1418' ELEVATION: 134.6' SUSAN DIONNE WELL NO.3 NORTHING: 2236676.57 EASTING: 212974.09 LAT: 60"06'47.1312" LONG: -151"34'24.2818" SECTION 6 FROM SOUTH SECTION LINE: 190' FROM EAST SECTION LINE: 1481' ELEVATION ~ 134.5' PROJECT REVISION: DATE: 6114104 DRAWN BY: CRM SCALE: 1- = 100' PROJECT NO, 0230 BOOK NO. 03-02 SHEET 1 SUSAN DIONNE NO.2 WELL SURFACE LOCATION DIAGRAM LOCATION SUSAN DIONNE EXPLORATION PAD TRACTS J & K DIONNE SID NO.2 OF R14W R13W R W Ninilchik Exploration Unit Outline T 1 S -¢- o 3 MILES MARATHON OIL COMPANY ALASKA REGION NINILCHIK MARATHON Susan Dionne 2 Location COOK INLET, ALASKA June 2004 0:freehand\Ninilchik\ninsd2permitloc. FH 10 r... U'. I I I L________ I I I I I f I I II --... , , I/~' IŒGASSER) I', ..' I . I "'-... . :-----1__J-----1 r 1 I r--, n I r II I I I II I I . I 11 ill ill I I I II I I I II I I I 11 I. I II ¡ I : I I ~ rk=====d--,L-----~ I _'''' ..." I I L.. I \~ "... I ! r-----' I I b:N~ I UNIT I 14' X lit' I I I I I I I I I I IIlH' I t-\ I I ....~ I I I L.__'___.J 1 \. ICDOMY 3' X 12' J'IIIIIII' 75HP 6 X 5 11" ~ -Z::t 7'5'" 6X5 U' ~t ... .. -- .... r8" '- . .~ ... 11IUH GLACIER DRILLING RIG #1 MUD PITS AND PUMP ROOM LAYOUT 4Ø" ~ o ... to SV 9L ~-600 PT . 75HP 75... 'fi X :¡ 611:1 U" U' --" .. J ~. ..t . I . .. II .. r " . .. .. .. . .. .. 1":':'1 !l [.::. I . . . 1'1'''''' . X m.3~ La! !i ,w, ~. 5W 9L ~~ A-6IIO PT .:.: m._~ 13'.... -[iJ ~ . .", . T ~'"~, ~ MlTAna ~.~ . . ....PaI. PIT ~ 0 -500 10 N II E () 0 Q) ro () (/) 500 1000 1500 2000 2500 - - ( ) ( ) 3000 """ - ..c - Q. 3500 ( ) C ns 4000 (,) :e ( ) > 4500 ( ) ;j ... I- 5000 I V 5500 6000 6500 7000 7500 8000 8500 . . MARATHON Oil Company '&iï. BAKER IIUGIIIS INTEQ Location: Kenai Peninsula, Alaska Slot: SD#2 Field: Ninilchik Field Well: SD#2 Installation: Susan Dionne Wellbore: SD#2 / KOP 10.00 18.00 DLS: 4.00 deg/100ft 34.00 42.00 50.00 ~58.00 End of Build 9 5/8" Casing V 63.53 Tangent Angle 63.53 Deg M MARATHON ~ Created by: Planner Date plotted' 9-Jun-2004 Plot reference is SD #2. Ref well path is SD #2 Ver 4. Coordinates are in feet reference SD #2. True Vertical Depths are reference Rig Datum. Measured Depths are reference Rig Datum. Rig Datum: Datum #1 Rig Datum to Mean Sea Level: 156.ooft. Plot North is aligned to TRUE North. 63.53 End of Hold 58.54 0v53.70 DLS: 2.50 deg/100ft '-... ': Tyonek 7" Casing l> 44.09 39.34 32.33 27.79 Tyonek T-2 End of DroplTurn WELL PROFILE DATA Point MO Ine Azi TVO North East deg/1 DOlt V.Seet Tie on 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 KOP 250.00 0.00 0.00 250.00 0.00 0.00 0.00 0.00 Target 1838.17 63.53 331.00 1532.20 694.36 -384.82 4.00 788.70 Target 5294.79 63.53 331.00 3073.08 3400.69 -1884.71 0.00 3862.72 Target 6926.14 25.00 310.00 4225.00 4299.15 -2530.20 2.50 4969.01 T.D. & Target 11094.70 25.00 310.00 8003.00 5431.56 -3879.75 0.00 6674.90 -500 -0 500 Scale 1 em = 250 ft 1000 1500 2000 2500 3000 3500 4000 4500 5000 5500 Vertical Section (feet) -> Azimuth 324.46 with reference 0.00 N, 0.00 E from SD #2 Target Angle 25.00 Deg 41/2" Liner ~ \. TO 6000 7500 6500 7000 Created by' Planner Date plotted: 9-Jun-2004 Plot reference is SO #2. Ref wellpath is SO #2 Ver 4. Coordinates are in feet reference SO #2. True Vertical Depths are reference Rig Datum. Measured Depths are reference Rig Datum. Rig Datum: Datum #1 Rig Datum to Mean Sea Level: 156.00 ft. Plot North is aligned to TRUE North. Scale 1 em = 200 ft . . MARATHON Oil Company Location: Kenai Peninsula, Alaska Slot: SD#2 Field: Ninilchik Field Well: SD#2 Installation: Susan Dionne Well bore: SD#2 East (feet) -> -6000 -5600 -5200 -4800 -4400 -4000 -3600 -3200 -2800 -2400 -2000 -1600 -1200 -800 r&i. BAKER HUGHES INTEQ TD ~ 4 1/2" Liner ~ .J~~ .~~ ~ End of Hold ~ '" .~ ~ M MARATHON -400 o / 9 5/8" Casing \\ End of Build KOP 400 6800 6400 6000 5600 5200 4800 4400 4000 3600 ^ I Z 0 3200 ;¡ J - cr 2800 !. - 2400 2000 1600 1200 800 400 en 0 Q) m 0 0 3 II -400 I\J 0 0 ;:: > . . M MARATHON ~ J MARATHON Oil Company,SD #2 Susan Dionne, Ninilchik Field,Kenai Peninsula, Alaska PROPOSAL LISTING Page 1 Well bore: SD #2 Wellpath: SD #2 Ver 4 Date Printed: 9-Jun-2004 .1. .... Well bore Name SD#2 Well Name SD#2 Slot Name SD#2 Installation Name Susan Dionne Field Name Ninilchik Field ^'"-'0I1J''' C" ~^"'M rea ^' '~~'^ w^ u CommentS; I Grid Northin!:! 2236705.0300 I Eastin!:! [ Eastina <;\;{\;:"'17~i7:,:¿';;^;^i INTEQ [Created 19-May-2004 I Last Revised 9-Jun-2004 I Government ID I Last Revised 19-May-2004 I Grid Eastin!:! 213017.1300 I Latitude N60 6 47.4215 J Northin!:! I Coord System Name I North Alianment 214436.499 2236359.987j AK-4 on NORTH AMERICAN DATUM 1927 datu~ True I Northina 226657.848~ I Coord System Name I North Alianment 2252005.118~ AK-4 on NORTH AMERICAN DATUM 1927 datu~ True All data is in Feet unless otherwise stated Coordinates are from Slot MD's are from Rig and TVD's are from Rig (Datum #1 156.0ft above Mean Sea Level) Vertical Section is from O.OON O.OOE on azimuth 324.46 degrees Bottom hole distance is 6674.90 Feet on azimuth 324.46 degrees from Wellhead Calculation method uses Minimum Curvature method Prepared by Baker Hughes Incorporated . . M MARATHON ~ 4 MARATHON Oil Company,SD #2 Susan Dionne, Ninilchik Field,Kenai Peninsula, Alaska PROPOSAL LISTING Page 2 Well bore: SD #2 Well path: SD #2 Ver 4 Date Printed: 9-Jun-2004 ... -- INTEQ Wellpath (Grid) Report MD[ft] Inc[deg] Azi[deg] TVD[ft] North[ft] East[ft] Dogleg Vertical Easting Northing Idea/100ftl Sectionlftl 0.00 0.00 0.00 0.00 O.OON O.OOE 0.00 0.00 213017.13 2236705.03 100.00 0.00 0.00 100.00 O.OON O.OOE 0.00 0.00 213017.13 2236705.03 200.00 0.00 0.00 200.00 O.OON O.OOE 0.00 0.00 213017.13 2236705.03 250.00 0.00 0.00 250.00 O.OON O.OOE 0.00 0.00 213017.13 2236705.03 300.00 2.00 331.00 299.99 0.76N 0.42W 4.00 0.87 213016.73 2236705.80 400.00 6.00 331.00 399.73 6.86N 3.80W 4.00 7.80 213013.49 2236711.98 500.00 10.00 331.00 498.73 19.03N 10.55W 4.00 21.62 213007.04 2236724.31 600.00 14.00 331.00 596.53 37.22N 20.63W 4.00 42.27 212997.40 2236742.73 700.00 18.00 331.00 692.63 61.32N 33.98W 4.00 69.65 212984.62 2236767.14 800.00 22.00 331.00 786.58 91.23N 50.56W 4.00 103.62 212968.76 2236797.43 900.00 26.00 331.00 877.92 126.80N 70.27W 4.00 144.02 212949.90 2236833.46 1000.00 30.00 331.00 966.20 167.85N 93.02W 4.00 190.65 212928.13 2236875.05 1100.00 34.00 331.00 1050.98 214.19N 118.71W 4.00 243.29 212903.56 2236921.98 1200.00 38.00 331.00 1131.87 265.59N 147.19W 4.00 301.67 212876.30 2236974.05 1300.00 42.00 331.00 1208.46 321.80N 178.35W 4.00 365.52 212846.50 2237030.98 1400.00 46.00 331.00 1280.38 382.55N 212.01W 4.00 434.52 212814.29 2237092.51 1500.00 50.00 331.00 1347.28 447.54N 248.03W 4.00 508.34 212779.83 2237158.34 1600.00 54.00 331.00 1408.83 516.44N 286.22W 4.00 586.61 212743.29 2237228.14 1700.00 58.00 331.00 1464.74 588.94N 326.40W 4.00 668.96 212704.85 2237301.57 1800.00 62.00 331.00 1514.73 664.67N 368.37W 4.00 754.98 212664.69 2237378.28 1838.17 63.53 331.00 1532.20 694.36N 384.82W 4.00 788.70 212648.95 2237408.35 1900.00 63.53 331.00 1559.76 742.77N 411.65W 0.00 843.68 212623.28 2237457.38 2000.00 63.53 331 .00 1604.34 821.06N 455.04W 0.00 932.61 212581.77 2237536.68 2100.00 63.53 331.00 1648.92 899.36N 498.43W 0.00 1021.54 212540.25 2237615.99 2200.00 63.53 331.00 1693.49 977.65N 541.82W 0.00 1110.47 212498.74 2237695.29 2300.00 63.53 331.00 1738.07 1055.94N 585.21W 0.00 1199.40 212457.22 2237774.60 2400.00 63.53 331.00 1782.65 1134.24N 628.61W 0.00 1288.34 212415.71 2237853.90 2500.00 63.53 331.00 1827.23 1212.53N 672.00W 0.00 1377.27 212374.19 2237933.21 2600.00 63.53 331.00 1871.81 1290.83N 715.39W 0.00 1466.20 212332.68 2238012.51 2700.00 63.53 331.00 1916.38 1369.12N 758.78W 0.00 1555.13 212291.16 2238091.81 2800.00 63.53 331.00 1960.96 1447.42N 802.17W 0.00 1644.06 212249.65 2238171.12 2900.00 63.53 331.00 2005.54 1525.71N 845.56W 0.00 1732.99 212208.13 2238250.42 3000.00 63.53 331.00 2050.12 1604.00N 888.95W 0.00 1821.92 212166.62 2238329.73 3100.00 63.53 331.00 2094.69 1682.30N 932.35W 0.00 1910.86 212125.10 2238409.03 3200.00 63.53 331.00 2139.27 1760.59N 975.74W 0.00 1999.79 212083.59 2238488.34 3300.00 63.53 331.00 2183.85 1838.89N 1019.13W 0.00 2088.72 212042.07 2238567.64 3400.00 63.53 331.00 2228.43 1917.18N 1062.52W 0.00 2177.65 212000.56 2238646.94 3500.00 63.53 331.00 2273.01 1995.47N 1105.91W 0.00 2266.58 211959.04 2238726.25 3600.00 63.53 331.00 2317.58 2073.77N 1149.31W 0.00 2355.51 211917.53 2238805.55 3700.00 63.53 331.00 2362.16 2152.06N 1192.70W 0.00 2444.44 211876.01 2238884.86 3800.00 63.53 331.00 2406.74 2230.36N 1236.09W 0.00 2533.38 211834.49 2238964.16 3900.00 63.53 331.00 2451.32 2308.65N 1279.48W 0.00 2622.31 211792.98 2239043.47 4000.00 63.53 331.00 2495.89 2386.95N 1322.87W 0.00 2711.24 211751.46 2239122.77 4100.00 63.53 331.00 2540.4 7 2465.24N 1366.27W 0.00 2800.17 211709.95 2239202.07 4200.00 63.53 331.00 2585.05 2543.53N 1409.66W 0.00 2889.10 211668.43 2239281.38 4300.00 63.53 331.00 2629.63 2621.83N 1453.05W 0.00 2978.03 211626.92 2239360.68 4400.00 63.53 331.00 2674.20 2700.12N 1496.44W 0.00 3066.97 211585.40 2239439.99 4500.00 63.53 331.00 2718.78 2778.42N 1539.83W 0.00 3155.90 211543.89 2239519.29 4600.00 63.53 331.00 2763.36 2856.71 N 1583.22W 0.00 3244.83 211502.37 2239598.60 4700.00 63.53 331.00 2807.94 2935.00N 1626.62W 0.00 3333.76 211460.85 2239677.90 4800.00 63.53 331.00 2852.51 3013.30N 1670.01W 0.00 3422.69 211419.34 2239757.20 All data is in Feet unless otherwise stated Coordinates are from Slot MD's are from Rig and TVD's are from Rig (Datum #1 156.0ft above Mean Sea Level) Vertical Section is from O.OON O.OOE on azimuth 324.46 degrees Bottom hole distance is 6674.90 Feet on azimuth 324.46 degrees from Wellhead Calculation method uses Minimum Curvature method Prepared by Baker Hughes Incorporated . . M MARATHON ~ ¡ MARATHON Oil Company,SD #2 Susan Dionne, Ninilchik Field,Kenai Peninsula, Alaska PROPOSAL LISTING Page 3 Wellbore: SD #2 Wellpath: SD #2 Ver 4 Date Printed: 9-Jun-2004 .i. ...,. INTEQ Wellpath (Grid) Report MD[ft] Inc[deg] Azi[deg] TVD[ft] North[ft] East[ft] Dogleg Vertical Eastíng Northing Idea/100ftl Sectionlftl 4900.00 63.53 331.00 2897.09 3091.59N 1713.40W 0.00 3511.62 211377.82 2239836.51 5000.00 63.53 331.00 2941.67 3169.89N 1756.79W 0.00 3600.56 211336.31 2239915.81 5100.00 63.53 331.00 2986.25 3248.18N 1800.19W 0.00 3689.49 211294.79 2239995.12 5200.00 63.53 331.00 3030.82 3326.47N 1843.58W 0.00 3778.42 211253.28 2240074.42 5294.79 63.53 331.00 3073.08 3400.69N 1884.71W 0.00 3862.72 211213.92 2240149.59 5300.00 63.40 330.97 3075.41 3404.77N 1886.97W 2.50 3867.35 211211.76 2240153.72 5400.00 60.97 330.31 3122.07 3481.85N 1930.33W 2.50 3955.27 211170.25 2240231.81 5500.00 58.54 329.61 3172.43 3556.63N 1973.57W 2.50 4041.26 211128.80 2240307.60 5600.00 56.12 328.88 3226.40 3628.97N 2016.61W 2.50 4125.14 211087.50 2240380.94 5700.00 53.70 328.10 3283.88 3698.73N 2059.36W 2.50 4206.75 211046.42 2240451.70 5800.00 51.29 327.28 3344.76 3765.77N 2101.75W 2.50 4285.95 211005.63 2240519.74 5900.00 48.88 326.40 3408.92 3829.98N 2143.70W 2.50 4362.58 210965.23 2240584.92 6000.00 46.48 325.45 3476.24 3891.23N 2185.12W 2.50 4436.49 210925.28 2240647.14 6100.00 44.09 324.42 3546.59 3949.39N 2225.93W 2.50 4507.55 210885.86 2240706.26 6200.00 41.71 323.30 3619.84 4004.37N 2266.07W 2.50 4575.61 210847.05 2240762.17 6300.00 39.34 322.07 3695.84 4056.05N 2305.44W 2.50 4640.55 210808.91 2240814.78 6400.00 36.99 320.71 3774.47 4104.34N 2343.98W 2.50 4702.25 210771.53 2240863.97 6500.00 34.65 319.19 3855.55 4149.15N 2381.62W 2.50 4760.58 210734.97 2240909.66 6600.00 32.33 317.48 3938.94 4190.38N 2418.28W 2.50 4815.45 210699.31 2240951.76 6700.00 30.04 315.55 4024.48 4227.97N 2453.89W 2.50 4866.73 210664.60 2240990.18 6800.00 27.79 313.32 4112.01 4261.84N 2488.38W 2.50 4914.34 210630.93 2241024.86 6900.00 25.57 310.74 4201.36 4291.92N 2521.70W 2.50 4958.18 210598.34 2241055.72 6926.14 25.00 310.00 4225.00 4299.15N 2530.20W 2.50 4969.01 210590.01 2241063.16 7000.00 25.00 310.00 4291.94 4319.21N 2554.11W 0.00 4999.23 210566.58 2241083.78 7100.00 25.00 310.00 4382.57 4346.38N 2586.49W 0.00 5040.15 210534.86 2241111.71 7200.00 25.00 310.00 4473.20 4373.54N 2618.86W 0.00 5081.08 210503.15 2241139.64 7300.00 25.00 310.00 4563.84 4400.71N 2651.23W 0.00 5122.00 210471.43 2241167.57 7400.00 25.00 310.00 4654.47 4427.87N 2683.61W 0.00 5162.92 210439.71 2241195.49 7500.00 25.00 310.00 4745.10 4455.04N 2715.98W 0.00 5203.84 210407.99 2241223.42 7600.00 25.00 310.00 4835.73 4482.20N 2748.35W 0.00 5244.76 210376.28 2241251.35 7700.00 25.00 310.00 4926.36 4509.37N 2780.73W 0.00 5285.68 210344.56 2241279.28 7800.00 25.00 310.00 5016.99 4536.53N 2813.10W 0.00 5326.61 210312.84 2241307.20 7900.00 25.00 310.00 5107.62 4563.70N 2845.47W 0.00 5367.53 210281.12 2241335.13 8000.00 25.00 310.00 5198.25 4590.86N 2877.85W 0.00 5408.45 210249.41 2241363.06 8100.00 25.00 310.00 5288.88 4618.03N 2910.22W 0.00 5449.37 210217.69 2241390.99 8200.00 25.00 310.00 5379.52 4645.19N 2942.60W 0.00 5490.30 210185.97 2241418.92 8300.00 25.00 310.00 5470.15 4672.36N 2974.97W 0.00 5531.22 210154.25 2241446.84 8400.00 25.00 310.00 5560.78 4699.52N 3007.34W 0.00 5572.14 210122.53 2241474.77 8500.00 25.00 310.00 5651.41 4726.69N 3039.72W 0.00 5613.06 210090.82 2241502.70 8600.00 25.00 310.00 5742.04 4753.85N 3072.09W 0.00 5653.99 210059.10 2241530.63 8700.00 25.00 310.00 5832.67 4781.02N 3104.47W 0.00 5694.91 210027.38 2241558.56 8800.00 25.00 310.00 5923.30 4808.18N 3136.84W 0.00 5735.83 209995.66 2241586.48 8900.00 25.00 310.00 6013.93 4835.35N 3169.22W 0.00 5776.75 209963.94 2241614.41 9000.00 25.00 310.00 6104.56 4862.52N 3201.59W 0.00 5817.68 209932.22 2241642.34 9100.00 25.00 310.00 6195.19 4889.68N 3233.97W 0.00 5858.60 209900.51 2241670.27 9200.00 25.00 310.00 6285.82 4916.85N 3266.34W 0.00 5899.52 209868.79 2241698.20 9300.00 25.00 310.00 6376.45 4944.01 N 3298.71W 0.00 5940.44 209837.07 2241726.12 9400.00 25.00 310.00 6467.09 4971.18N 3331.09W 0.00 5981.37 209805.35 2241754.05 9500.00 25.00 310.00 6557.72 4998.34N 3363.46W 0.00 6022.29 209773.63 2241781.98 9600.00 25.00 310.00 6648.35 5025.51 N 3395.84W 0.00 6063.21 209741.91 2241809.91 9700.00 25.00 310.00 6738.98 5052.67N 3428.21W 0.00 6104.14 209710.19 2241837.84 All data is in Feet unless otherwise stated Coordinates are from Slot MD's are from Rig and TVD's are from Rig ( Datum #1 156.0ft above Mean Sea Level) Vertical Section is from O.OON O.OOE on azimuth 324.46 degrees Bottom hole distance is 6674.90 Feet on azimuth 324.46 degrees from Wellhead Calculation method uses Minimum Curvature method Prepared by Baker Hughes Incorporated e . , M MARATHON MARATHON Oil Company,SD #2 Susan Dionne, Ninilchik Field,Kenai Peninsula, Alaska PROPOSAL LISTING Page 4 Well bore: SD #2 Well path: SD #2 Ver 4 Date Printed: 9-Jun-2004 ... .... INTEQ Wellpath (Grid) Report MD[ft] Inc[deg] Azi[deg] TVD[ft] North[ft] East[ft] Dogleg Vertical Easting fde~/1 OOftl Sectionfftl 9800.00 25.00 310.00 6829.61 5079.84N 3460.59W 0.00 6145.06 209678.48 2241865.77 9900.00 25.00 310.00 6920.24 5107.01N 3492.96W 0.00 6185.98 209646.76 2241893.70 10000.00 25.00 310.00 7010.87 5134.17N 3525.34W 0.00 6226.91 209615.04 2241921.62 10100.00 25.00 310.00 7101.50 5161.34N 3557.71W 0.00 6267.83 209583.32 2241949.55 10200.00 25.00 310.00 7192.13 5188.50N 3590.09W 0.00 6308.75 209551.60 2241977.48 10300.00 25.00 310.00 7282.76 5215.67N 3622.46W 0.00 6349.68 209519.88 2242005.41 10400.00 25.00 310.00 7373.39 5242.84N 3654.84W 0.00 6390.60 209488.16 2242033.34 10500.00 25.00 310.00 7464.02 5270.00N 3687.21W 0.00 6431.53 209456.44 2242061.27 10600.00 25.00 310.00 7554.65 5297.17N 3719.59W 0.00 6472.45 209424.72 2242089.20 10700.00 25.00 310.00 7645.28 5324.33N 3751.96W 0.00 6513.37 209393.01 2242117.13 10800.00 25.00 310.00 7735.91 5351.50N 3784.34W 0.00 6554.30 209361.29 2242145.05 10900.00 25.00 310.00 7826.54 5378.67N 3816.71W 0.00 6595.22 209329.57 2242172.98 11000.00 25.00 310.00 7917.17 5405.83N 3849.09W 0.00 6636.14 209297.85 2242200.91 11094.70/25.00 310.00 8003.00 5431.56N 3879.75W 0.00 6674.90 209267.81 2242227.36 All data is in Feet unless otherwise stated Coordinates are from Slot MD's are from Rig and TVD's are from Rig ( Datum #1 156.0ft above Mean Sea Level) Vertical Section is from O.OON O.OOE on azimuth 324.46 degrees Bottom hole distance is 6674.90 Feet on azimuth 324.46 degrees from Wellhead Calculation method uses Minimum Curvature method Prepared by Baker Hughes Incorporated e . M MARATHON ~ J MARATHON Oil Company,SD #2 Susan Dionne, Ninilchik Field,Kenai Peninsula, Alaska PROPOSAL LISTING Page 5 Well bore: SD #2 Wellpath: SD #2 Ver 4 Date Printed: 9-Jun-2004 .i. ..,.. INTEQ MOlft1 TVDlft1 Northlft1 250.00 250.00 1838.17 1532.2C 5294.79 3073.0e 5928.81 3428.0C 6926.0C 4224.87 6926.14 4225.0C 8560.24 5706.0C 11094.7C 8003.0C Eastlft1 O.OON 694.36N 3400.691\, 3847.941\, 4299.111\, 4299.151\ 4743.051\, 5431.561\ Comment O.OOE KOP 384.82\A End of Build 1884.71 V\ End of Hold 2155.69V\ Tvonek 2530.16V\ End of DroplTurn 2530.20V\ Tvonek T-2 3059.22V\ Tvonek T-3 3879.75V\ TD Hole Sections Diameter Start [in1 MOlft1 12 1/4 81/2 7.000 Start TVDlftl 0.00 1900.0C 5930.0C Start Start Northlftl Eastlft1 0.00 O.OON 1559.76 742.77N 3428.7£ 3848.67N End End MDlft1 TVOlftl 1900.0C 1559.76 5930.0C 3428.79 11094.7C 8003.0C O.OOE 411.65"'" 2156.18V\ End Start Northlftl Eastlft1 742.77N 411.65"'" SD #2 3848.671\ 2156.18V\ SD #2 5431.561\ 3879.75V\ SD #2 Casings Name Top MOlft1 Top TVOlft1 0.00 0.00 0.00 0.00 0.00 0.00 Top Top Northlft1 Eastlft1 O.OON O.OOE O.OON O.OOE O.OON O.OOE Shoe Shoe MDlft1 TVOlftl 1900.0C 1559.76 5930.0C 3428.79 11094.7C 8003.00 Shoe Shoe Northlft1 East!ft1 742.77N 411.65\ASD#2 3848.671\, 2156.18V\ SD #2 5431.561\, 3879.75V\ SO #2 9 5/8" Casino 7" Casinç¡ 41/2" Liner Name Northlft1 Eastlft1 TVDlftl Latitude SD#2 Tyonek T-3 - 4707.381\ 3232.16V\ 5706.0C N60 7 33.7 W151 209897.9i 2241487.9f 10-Feb-2003 5/19/04 SD#2 Tyonek T-2 . 4163.731\ 2623.03V\ 4225.0C N60 7 28.4 W151 3515.21 210493.9f 2240929.9~ 10-Feb-2003 5/19/04 SD#2 Tyonek - 4159.741\ 2034.77V\ 3428.0C N60 7 28.3 W151 35 3.60 211081.9f 2240911.9~ 10-Feb-2003 5/19/04 All data is in Feet unless otherwise stated Coordinates are from Slot MD's are from Rig and TVD's are from Rig (Datum #1 156.0ft above Mean Sea Level) Vertical Section is from O.OON O.OOE on azimuth 324.46 degrees Bottom hole distance is 6674.90 Feet on azimuth 324.46 degrees from Wellhead Calculation method uses Minimum Curvature method Prepared by Baker Hughes Incorporated RATHON Oil Company Location: Kenai Peninsula, Alaska Slot: SD#2 Field: Ninilc!1ik Field Well: 8D#2 Installation: Susan Dionne Wellbore: SD#2 Scale 1 cm = 150 ft East (fee~ -> -4200 -3900 -3600 -3300 -3000 -2700 -2400 -2100 -18 0 -1500 -1200 -900 -600 -300 0 5700 5400 5100 4800 4500 4200 3900 3900 3700 3900 3500 3300 3600 3200 3300 3000 2900 ^ 3000 ^ I I - 2800 .... -j ( ,) ~ J 2700 - 2700 i .c "'00 1::: 0 2400 Z 2400 2100 2100 2300 2200 1800 2100 1500 2000 i900 1200 '800 1700 900 1600 600 ¡¡:= 0 1O 300 ..- II E () 0 (!) ro () (f) -300 -4200 -3900 -3600 -3300 -3000 -2700 -2400 -2100 -1800 -1500 -1200 -900 -600 Scale 1 em = 150 ft East (feet)-> 280 270 260 RATHON Oil Com y Location: Kenai Peninsula, Alaska Slot: SD#2 Field: Ninilchik Field Well: SD#2 I installation: Susan Dionne Wellbore: SD#2 I 156.00ft TRUE NORTH 350 o 10 340 20 290 250 200 160 190 180 80 90 Normal Plane Travelling Cylinder - Feet All depths shown are Measured · e M MARATHON ~ ~ MARATHON Oil Company SD #2 Ver 4, SD #2 SD #2, Susan Dionne CLEARANCE LISTING Page 1 Date Printed: 9-Jun-2004 Ninilchik Field, Kenai Peninsula, Alaska ... .... INTEQ Ellipse separations are reported ONLY if BOTH wells have uncertainty data Only Depth and Magnetic Reference Field error terms are correlated across tie points Proximities beyond ft with expansion rate of ft/1 OOOft are not reported Cutoff is calculated on CENTRE to CENTRE distance Summary data uses Closest Approach clearance calculation for all minima Hole size/Casings are NOT included Hole size/Casings are NOT subtracted from Centre-Centre distance Ellipses scaled to 2.00standard deviations. Closing Factor Confidence limit of 99.80% Errors on Ref start at Slot Permanent Datum (0.00) Report uses Revised: (D-C)/E Factor Calculation Well bore Name SD#2 I Created 19-May-2004 I Last Revised 9-Jun-2004 I Last Revised 19-May-2004 Well Name SD#2 , Govemment ID Slot Name SD#2 I Grid Northina 2236705.0300 I Grid Eastina 213017.1300 I Latitude N60 6 47.4215 I Longitude W151 34 23.4462 ¡North 311.33N lEast 1427.16W Installation Name Susan Dionne I Eastina I Northina I Coord System Name 214436.4990 2236359.9871 AK-4 on NORTH AMERICAN DATUM 1927 Field Name Ninilchik Field I Eastina I Northina 226657.848~ '" .. . ....~.. Coord System Name North Alianment 2252005.118) AK-4 on NORTH AMERICAN DATUM 1927 datu True Clearance Summary Offset Offset Offset WellName Well bore Slot SD#3 SD#1 SD#3 SD#1 SD#3 SD#1 Offset Minimum MD[ft] Structure Distance 1ft] Susan Dionne 51.31 Susan Dionne 103.36 Diverging Ellipse From[ft] Separation 1ft] 0.00 0.00 250.00 250.00 Ellipse MD[ft] Clearance Factor Clearance MD[ft] All data is in Feet unless otherwise stated Coordinates are from Slot and TVD's are from Rig ( Datum #1 156.0ft above Mean Sea Level) Reference MD's are from Rig, Offset MD's are from Rig Calculation method uses Minimum Curvature method Confidence Limit of 95.45 (1 D) Prepared by Baker Hughes Incorporated Reference Reference Reference Reference Offset Well Offset Offset Angle MD[ft) TVD[ft) North[ft) East[ft) MD[ft) TVD[ft) From Highside [ft) fdeQl fftl 0.00 0.00 O.OON O.OOE SD #3 0.00 0.00 29.36S 42.08W -124.9 51.31 0.00 0.00 O.OON O.OOE SD #3 0.00 0.00 29.36S 42.08W -124.9 51.31 100.00 100.00 O.OON O.OOE SD #3 99.94 99.94 29.11 S 42.33W -124.5 51.37 200.00 200.00 O.OON O.OOE SD #3 199.85 199.85 28.47S 42.94W -123.6 51.53 250.00 250.00 O.OON O.OOE SD #3 249.75 249.73 27.84S 43.59W -122.6 51.72 300.00 299.99 0.76N 0.42W SD #3 299.38 299.34 26.79S 44.76W -92.8 52.20 400.00 399.73 6.86N 3.80W SD #3 398.31 398.05 22.718 49.66W -93.6 54.59 500.00 498.73 19.03N 10.55W SD #3 496.89 495.73 14.48S 59.83W -94.6 59.67 600.00 596.53 37.22N 20.63W SD #3 593.64 590.25 2.59S 76.62W -95.0 68.99 700.00 692.63 61.32N 33.98W SD #3 688.34 680.78 11.82N 100.18V1. -94.9 83.50 800.00 786.58 91.23N 50.56W SD #3 780.33 766.32 27.03N 130.37V1. -94.9 104.42 900.00 877.92 126.80N 70.27W SD #3 868.80 845.98 41.32N 166.01V1. -95.2 132.26 1000.00 966.20 167.85N 93.02W SD #3 959.48 924.82 56.95N 207.99V1. -95.6 165.01 1100.0C 1050.9E 214.19N 118.71 VI. SD #3 1053.38 1004.77 74.70N 253.91 VI. -96.4 199.68 Wellbore MDfftl SD#3 M MARATHON ~ ¡ e . MARATHON Oil Company SD #2 Ver 4, SD #2 SD #2, Susan Dionne CLEARANCE LISTING Page 2 Date Printed: 9-Jun-2004 Ninilchik Field, Kenai Peninsula, Alaska ... ..... INTEQ All data is in Feet unless otherwise stated Coordinates are from Slot and TVD's are from Ri9 ( Datum #1 156.0ft above Mean Sea Level) Reference MD's are from Rig, Offset MD's are from Rig Calculation method uses Minimum Curvature method Confidence Limit of 95.45 (1 D) Prepared by Baker Hughes Incorporated . . , M MARATHON 4 MARATHON Oil Company SD #2 Ver 4, SD #2 SD #2, Susan Dionne CLEARANCE LISTING Page 3 Date Printed: 9-Jun-2004 Ninilchik Field, Kenai Peninsula, Alaska .1. .... INTEQ Reference MD[ft] Reference TVD[ft] Reference North[ft] Reference East[ft] Offset Well Offset MD[ft] Offset TVD[ft] 0.00 0.00 O.OON O.OOE SO #1 100.00 100.00 O.OON O.OOE SO #1 200.00 200.00 O.OON O.OOE SD #1 250.00 250.00 O.OON O.OOE SD #1 300.00 299.99 0.76N 0.42W SD #1 400.00 399.73 6.86N 3.80W SD #1 500.00 498.73 19.03N 10.55W SD #1 600.00 596.53 37.22N 20.63W SD #1 700.00 692.63 61.32N 33.98W SD #1 800.00 786.58 91.23N 50.56W SD #1 fftl 0.00 3.00 75.73S 70.34W -137.1 103.40 97.00 100.00 75.73S 70.34W -137.1 103.36 197.00 200.00 75.73S 70.34W -137.1 103.36 247.00 250.00 75.73S 70.34W -137.1 103.36 296.99 299.99 75.73S 70.34W -108.6 103.63 396.73 399.73 75.73S 70.34W -112.0 106.06 495.73 498.73 75.73S 70.34W -118.4 112.05 593.53 596.53 75.73S 70.34W -126.4 123.40 689.63 692.63 75.73S 70.34W -134.7 141.79 783.58 786.58 75.73S 70.34W -142.2 168.12 [MDfftl Offset WeUbore Survey Tool Proørams Well I Wellbore I Survey Name SO #1 SD #1 MSS <2498-14931> All data is in Feet unless otherwise stated Coordinates are from Slot and TVO's are from Rig ( Datum #1 156.0ft above Mean Sea Level) Reference MD's are from Rig, Offset MD's are from Rig Calculation method uses Minimum Curvature method Confidence Limit of 95.45 (1 D) Prepared by Baker Hughes Incorporated . . - Marathon Oil Company Well Name: Susan Dionne #2 Rev #1 Location: Kenai, Alaska. INTEGRATE FLUI 5 ENGINEERING PR JECT PLAN ~&IFE ~ Prepared For: MARATHON OIL COMPANY Well Susan Dionne #2 Kenai Peninsula, Alaska Prepared by: Tony Tykalsky Reviewed by: Hal Martins Presented to: Will Tank Rev. #1 June 15, 2004 r:zutIFE ~ . . ~IFE ---.. Marathon Oil Company Well Name: Susan Dionne #2 Rev #1 Location: Kenai, Alaska. Marathon Oil Company PO Box 190168 Anchorage, Alaska 99519 ATTN: Will Tank Will: Enclosed is the revised recommended drilling fluid program for the Susan Dionne #2 Well to be drilled this year. The following is a brief synopsis of the program. Overview: SD #2 is a development well targeting the Tyonek formation at the Susan Dionne field. A Gel/Gelex spud mud is recommended for the surface interval. Two Flo- Pro fluids will be used for the intermediate and production intervals. After logging the production interval, the well will be completed with 3-1/2" liner cemented in place. Surface Interval: A standard fresh water Gel/Gelex spud mud will be used. Initial funnel viscosity should be in the 50 - 75 sec/qt range. Lower funnel viscosity to 45 - 60 sec/qt after gravel has been drilled. Lower fluid loss to 10 - 12 cc's API prior to running surface casing. Intermediate Interval: This interval will be drilled with the same type of Flo-Pro fluid used on the Beaver Creek #12 well. After drilling out the surface cement, the well will be displaced to the new fluid. SafeCarb bridging material will be maintained according to the mud program to minimize losses to the formation. Lubricants should be added on a as-needed basis. Production Interval: This interval will be drilled with the standard non-damaging Flo-Pro fluid used on non-excape wells. After drilling out the intermediate cement and 20 - 25 feet of new hole, the well will be displaced to the new fluid. Fluid loss should be maintained @ 6 - 8 cc' s API for this interval. Completion: The completion will consist of a 4-1/2" long string cemented in place. Corrosion control will be added to the mud that will remain in the 4-1/2" x 7" annulus prior to cementing. Tony Tykalsky Project Engineer M-I Drilling Fluids Reference Well: Susan Dionne #3 NOTE: This pr02ram is provided as a 2uide only. Well conditions will always dictate fluid properties required. F!7 ~ ~IFE rm.œ ~ - ilFE ----.. - ~ 81FE . . Marathon Oil Company Well Name: Susan Dionne #2 Rev #1 Location: Kenai, Alaska. EXECUTIVE SUMMARY Our overall goal is no M-I/Swaco HSE incidents while providing fluids and solids control services to our customer. Our goal for SD #2 is to remove drill solids from the mud system at a cost of less than $0.23 per pound. This has been the average for the last three years of centrifuge van operations With the revised fluid formulation (increasing the fluid agent concentration and maintaining a lower fluid loss), we expect to minimize formation damage and hole enlargement in the production interval as demonstrated on KBU 43-7X. Use of the MI Swaco centrifuge van for the last three years has provided an estimated savings in dilution and disposal costs to Marathon Oil of over $500,000. With continued usage of our equipment, we expect to provide more savings to you during future operations. r:u-.IFE ~ . . Marathon Oil Company Well Name: Susan Dionne #2 Rev #1 Location: Kenai, Alaska. Interval Benchmarks and Targets Drilling Intervals Dept" Interval .(ft) Fluid cost per foot Volume Usage Solids Removal 0-1900' < $3.83 ft < 1369 bbls 1900 - 5930' < $22.37 ft < 1671 bbls 5930 - 11094' < $15.41 ft < 1358 bbls Total Project Targets for Drilling Interval Avg. < $15.95 Max. < 4391 bbls < $0.23 lb No Spills from Centrifuge Van Operation r:':7 4 ~IFE ~ . . ~ .. .' ilFE ----- Marathon Oil Company Well Name: Susan Dionne #2 Rev #1 Location: Kenai, Alaska. Project Summary Casing Hole Casing Depth TVD Mud Mud Sum Interval Size Size Program System Weight Days Mud Cost (in) (in) (ft) (ft) Solids Control (ppg) 9-5/8" 12-1/4" 1900 1560' Gel/Gelex Spud 8.6 - 9.4 5 $7,278 Mud Screens 150/180 mesh Desilter Centrifuge Van 7" 8-112" 5930' 3429' Flo-Pro 9.0-9.6 10 $90,141 w/SafeCarb Screens 180 - 210 mesh Desilter Centrifuge Van 4-1/2" 7" 11094 ' 8002' Flo-Pro 9.0-9.6 7 $79,579 w/SafeCarb Screens 230 - 210 mesh Desilter Centrifuge Van 4-112" 7" Completion 11094 ' 8002' 6% KCl 8.55 2 $2,840 ~ Utilize all solids control equipment to minimize the build up of drill solids in the system (if possible, centrifuge the surface mud during trips to reduce drill solids). ~ Condition the mud prior to mnning casing for all intervals. ~ Cost does not include any considerations for whole mud losses. ~ Cost includes 3% Lubetex concentration for intermediate and production interval. r'J ~ ~IFE ~ Marathon Oil Company Well Name: Susan Dionne #2 Rev #1 Location: Kenai, Alaska. M-I Bar 0 84 136 0 220 1.56 M-I Gel 274 0 0 0 274 2.11 Gelex 17 0 0 0 17 0.1 Soda Ash 10 12 10 0 32 0.26 Caustic Soda 14 17 14 0 45 0.65 Conqor 404 0 4 5 0 9 5.72 SafeScav NA 2 4 3 0 9 1.87 Bicarb 14 12 10 0 36 0.35 Conqor 303 0 0 0 1 1 1.06 Flo Vis 0 134 109 2 245 26.6 Desco CF 14 0 0 0 14 0.36 DualFlo 0 0 109 0 109 5.29 Polypac UL 8 67 0 0 75 6.49 Greencide 25G 0 0 2 0 2 1.81 Bioban BP Plus 0 67 54 0 121 1.47 KCI 0 702 570 42 1314 9.12 Safecarb 0 334 272 0 606 5.85 Lubetex 0 38 31 0 69 27.95 Defoam X 0 19 8 0 27 1.31 Conqor 303A 0 0 0 4 4 1.06 Engineer Service 5 10 7 2 24 . . ~ -: 'IFE ----.. Marathon Oil Company Well Name: Susan Dionne #2 Rev #1 Location: Kenai, Alaska. Offset Well Information Well Hole Size Depth PPG PV YP FL Comments SD#3 12.25 254 8.6 15 38 NIC Spud in, drlg ahead 1370 9.1 16 30 14 Drlg ahead 1875 9.1 15 29 13.8 Trip for motor, drlg ahead 1972 9.2 11 14 14.8 Drlg to TD, rlu & run 9-5/8" csg 8.5 3100 9.3 9 30 8 New mud, drlg out & drlg ahead 4190 9.55 11 24 7.4 Drlg ahead, lots of clays 4756 9.5 10 34 7.2 Short trip, bridge, dump mud to reduce drill solids 5245 9.5 15 28 6.6 Add 3% lubetex to help sliding 5245 9.8 12 28 6.8 Wiper trip, hit bridges, increase PPG with barite, ru 7" csg 6.125 5635 9.5 9 19 7.7 Drlg out, disp to new mud, drlg to coring point 5693 9.4 9 21 7.6 Core 5721 9.4 10 22 7.2 Core 6310 9.4 11 28 7.9 Log & drlg ahead 6879 9.5 12 27 6.5 Drlg ahead no problems 7745 9.55 13 29 5.9 Drlg ahead, log to 6879' 8445 9.6 14 30 6.2 Drlg ahead, POH for washout 8772 9.7 15 29 7.4 Inc mud weight for core 8887 9.75 13 21 6.8 Run centrifuge van to lower solids 9357 9.8 14 27 6.4 Finish core, drlg ahead, centrifuge solids 9439 9.85 14 27 6.4 Trip for bit 9785 9.8 13 23 5.9 Drlg ahead, trip for washout, RIH 10100 9.75 12 22 5.7 Drlg ahead 10254 9.7 12 22 6.2 Drlg to TD, log hole, fish for logging tool 10254 9.7 10 14 7.2 Run liner, briefly stuck, reduce PPG, run liner & cement same ~J ~IFE ~ . . ~IFE - Marathon Oil Company Well Name: Susan Dionne #2 Rev #1 Location: Kenai, Alaska. Plans & Procedures => COMMUNICATION - The Field Mud Engineer will communicate daily with the In-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 - Refer to fluid formulas and the Optibridge charts for maintaining proper bridging material concentration in the mud system while drilling the intermediate and production intervals. => FLUID LOSS CONTROL - In the intermediate interval the API fluid loss will be maintained in the 7 - 9 cc's range. In the production interval the API fluid will be maintained at less than 6 cc' s at all times. In addition to sufficient fluid loss agent additions, this may require adequate dilution of the mud system in order to keep reactive drill solids to a minimum. It is particularly important to maintain a low hardness «200 ppm Ca) for effective use of DualFlo, therefore cement contamination should be completely treated as rapidly as possible prior to adding DualFlo to control or reduce fluid loss. NOTE: If additions of DualFlo do not appear to be lowering the fluid loss adequately, then switch to additions of Polypac Supreme SL after consultation with town. => LSRV - When drilling with a FloPro fluid, the low shear rate rheology should be maintained around 30,000 cps. In addition to adequate additions of Flo Vis Plus, this will also require keeping reactive drill solids to a minimum in order to reduce or eliminate false and unwanted high LSRV. => DRILL SOLIDS - MBT - The MBT should be kept at less than 5 ppb in the production interval through aggressive use of solids equipment and dilution as needed. => MIXING CONDITIONS - Whenever possible all treatments to the mud system should be made as pre-mix additions. Polymers and KCl should first be mixed in fresh water in that order and then blended into the active system over one or two circulations as needed. => CORROSION - Conqor 404 additions should be made daily when drilling with FloPro fluid in order to maintain a Conqor 404 concentration of +/- 2000 PPM. => CORRISION - SafeScav NA additions should be made daily as needed with any fluid in the hole. Maintain a DO reading of less than 3 ppm => GREENCIDE 25G ADDITIONS - Greencide 25G additions should be made daily when drilling in the production interval, in the range of 5 gallons per day. => SOLIDS VAN USAGE - The Solids Van should be used whenever drill solids become un-acceptably high and reduction of drill solids in the mud can be more economically done with centrifuging and dilution then just with dumping and diluting. The weight of the drilling fluid alone should not be the determining condition for when to use the Solids Van. => WEIGHTING UP - All increases in mud weight should be accomplished with barite additions. In the production interval, insure chloride concentration is maintained at 30,000 to minimize the need for barite additions. r:zII;lFE ~ . . Marathon Oil Company Well Name: Susan Dionne #2 Rev #1 Location: Kenai, Alaska. Interval Summary -12-1/4" hole 1900 Drilling Fluid System Gel/Gelex Spud Mud Key Products MI Gel I Gelex I Soda Ash I Caustic Soda I MI Bar I PolyPac Supreme UL Solids Control Shale Shakers I Desilter I Centrifuge Van Recommended shaker screens - 150 - 180 mesh Potential Problems Lost circulation, coal sloughing, drill solids build-up, gas kick, tight hole conditions L/' Interval Drilling Fluid Properties Depth Mud Funnel Yield API Interval Weight Viscosity Point Fluid Loss pH (ft) (ppg) (sec./qt) (lb./IOOft2) (mI/30min) ./\ 0-1900' 8.6 (;Y 60 - 100 25 - 35 NC - 10/12 +1- 9.5 Drill Solids (%) <7% ~ Treat drill water with Soda Ash to reduce hardness. ~ Build spud mud with 20 - 25 PPB M-I Gel to +1- 100 sec.qt funnel viscosity. ~ Lower funnel viscosity to +1- 60 after gravel zone has been drilled. ~ Add Gelex as needed to maintain sufficient viscosity for hole cleaning. ~ Increase funnel viscosity if fill on connections begins to occur. ~ Reduce fluid loss with additions of Polypac Supreme UL prior to running surface casing. ~ Add 2 - 5 PPB ofM-I Seal Fine to mud system if seepage losses becomes a problem.. ~ Condition mud prior to cementing casing to reduce yield point and gel strengths. ~ Estimated volume usage for interval - 1369 barrels. ~ Estimated haul off volume - 2215 barrels. ~IFE ~ . . ~ ~iIFE Marathon Oil Company Well Name: Susan Dionne #2 Rev #1 Location: Kenai, Alaska. Interval Summary - 8-1/2" hole Drilling Fluid System Flo-Pro Fluid Key Products Flo- Vis / PolyPac UL / KCl / SafeCarb F & M, Asphasol Supreme / Lubetex / Caustic Soda / Conqor 404 / SafeScav NA Solids Control Shale Shakers / Desilter / Centrifuge Van Recommended shaker screens - 210 mesh Potential Problems Lost circulation, coal sloughing, drill solids build-up, gas kick, tight hole conditions Interv . rilling Ji.~operûes Plastic LSRV Viscosity 1 min (cp.) (cps) 8 - 12 20 - 30,000 Depth Interval (ft) 1900 - 5930' Mud Weight (ppgj-' 9·t:1 API Fluid Loss (mIl30min) 8 - 10 pH Drill Solids (%) +/- 7.5 % +/- 9.5 » Use one rig pit to drill out surface casing. In other rig pits, build new Flo-Pro fluid using the enclosed formula. » After drilling out surface casing, displace hole to Flo-Pro fluid prior to running leak off test. » Maintain DO reading ofless than 3 ppm with additions of SaveScav NA. » Maintain Conqor 404 concentration of 2000+ ppm. » If running coals become a problem, increase Asphasol Supreme additions. » Estimated volume usage for interval- 1671 barrels. » Estimated haul off volume - 2262 barrels. » Condition mud prior to running 7" casing. NOTE: Follow BOSCO guidelines when adding biocide, oxygen scavenger and corrosion inhibitor. ~IFE ~ . . Marathon Oil Company Well Name: Susan Dionne #2 Rev #1 Location: Kenai, Alaska. Intermediate Interval Fluid Formula 8-1/2" I nterval from 1900 - 5930' Input Susan Dionne #2 9.0 +1- MI Bar 4.2 KCIWt% No 6 Output - 1 bbl Concentration Et~I!tt, Ib Lab, gm 1 Water 298.70 298.70 0.853 298.70 2 Soda Ash 0.25 0.25 0.000 0.10 Reduce Hardness 3 Flovis 2.00 2.00 0.004 1.33 Viscosity 4 Polypac Supreme UL 2.00 2.00 0.004 1.25 Fluid Loss Control 5 Caustic Soda 0.50 0.50 0.001 0.23 pH Control 6 Potassium Chloride 19.07 19.07 0.023 7.98 Inhibition 7 CONQOR 404 2.00 2.00 0.004 1.43 Corrosion Control 8 SafeCarb F 20.00 20.00 0.020 7.20 Bridging Agent 9 SafeScav NA 0.25 0.25 0.001 0.25 Oxygen Scavenger If bit balling becomes a problem, add the following: 10 D-D CWT I 1.00 I 1.00 I 0.003 I 1.00 Reduce BHA Balling If torque becomes a problem, or sliding is difficult, add up to 5% of the following: 11 Lubetex 14.00 14.00 0.041 14.43 Lubricity Total Calculated Mud Weight Total Chloride 399 399 9.05 29600 1.000 350 1671 Barrels r:u-.IFE ~ . . Marathon Oil Company Well Name: Susan Dionne #2 Rev #1 Location: Kenai, Alaska. Interval Summary - 7" hole 5930 - 11094' Drilling Fluid System Flo- Pro Fluid Key Products Flo-Vis I DualFlo I KCI I Greencide 25G I SafeCarb FI MI Bar I Caustic Soda I Conqor 404 I SafeScav NA Solids Control Shale Shakers I Desilter I Centrifuge Van Recommended shaker screens - 210 - 230 mesh Potential Problems Lost circulation, coal sloughing, drill solids build-up, gas kick, tight hole conditions !lJterY~. DrillingP.uidPr()per'~es Depth Mud Plastic LSRV Interval Weight Viscosity 1 min (ft) (pp~Vl (cp.) (cps) 5930 - 11094' 9.0 t~ 10 - 14 20 - 30,000 API Fluid Loss (mI/30min) 6-8 pH Drill Solids (%) +1- 5% +1- 9.5 ~ Use one rig pit for drilling out intermediate casing. In other rig pits, build new Flo-Pro fluid using the enclosed formula. ~ If running coals become a problem, treat with a 2 PPB addition of Asphasol Supreme. ~ Periodic additions of Greencide 25G will be needed to control bacteria build-up. ~ Estimated volume usage for interval- 1358 barrels. ~ Estimated haul off volume - 2897 barrels. ~ Condition mud prior to running 3-1/2" casing. NOTE: Follow BOSCO guidelines when adding biocide, oxygen scavenger and corrosion inhibitor. F!7 ~ ~IFE ~ . . Marathon Oil Company Well Name: Susan Dionne #2 Rev #1 Location: Kenai, Alaska. Production Interval Fluid Formula 7" Interval from 5930 - 11094' Input Description Mud Weight Weight Material Weight Material SG Weight Material Price Sea Water Sea Salt M-I Gel M-I Gel Price Order of Addition 1 2 3 4 5 6 7 8 9 10 11 12 13 Susan Dionne #2 9.0 +1- SafeCarb 2.8 0.35 No No Output - 1 bbl No 6 0.2516 Water 325.19 325.19 Soda Ash 0.25 0.25 FloVis Plus 1.50 1.50 DualFlo 4.00 4.00 SafeCarb Fine 20.00 20.00 Potassium Chloride 20.76 20.76 Greencide 25G 0.25 0.25 CONQOR 404 2.00 2.00 Caustic Soda 0.50 0.50 SafeScav NA 0.25 0.25 If Bit balling becomes a rroblem, add the following D-D 4.00 I 4.00 I 0.011 I 4.00 If sliding or high torque becomes a problem add 1 - 3% of the following Lubetex I 7.00 I 7.00 I 0.021 I 7.00 If sloughing coals become a problem add 2 - 4 ppb of the followinQ Asphasol Supreme I 2.00 I 2.00 I 0.004 I 1.33 Mix fluid in the order listed above. Wait for 1 - 2 circulations before adding SafeScav NA to the system. Alternate additions of Greencide 25G and SafeScav NA as needed. Maintain 4+ ppb concentration of DualFlo to maintain as Iowa API fluid loss as possible. Plan on daily additions of DualFlo to achieve 6.0 - 7.0 cc's API Fluid Loss Reduce concentration of FloVis as needed to maintain rheology. Total I Calculated Mud Weight Total Chloride 380.1 380.1 9.050 29600 0.929 0.000 0.040 0.080 0.020 0.025 0.001 0.004 0.001 0.001 325.19 0.10 1.00 2.68 7.60 8.68 0.30 1.43 0.23 0.25 ~IFE ~ Reduce Hardness Viscosity Fluid Loss Control Bridging Agent Inhibition Biocide Corrosion Control pH Control Oxygen Scavenger Reduce BHA Balling Lubricity Wellbore Stability 1358 Barrels 1. After the an additional 2. Add 1 3. After the 1 4. This Marathon Oil Wen Name: Location: Kenai, Alaska. Corrosion Control Additive in Casing x Tubing Well Susan Dionne #2 Volumes: Tubing Volume 4-1/2" Tubing Annular Volume Casing x Tubing x 3.992 x 11094 ft Open Hole x Tbg .,..L.000 x 6.276 @ 5930 ft MD +- 7.000 x 4.50 @ 11094 ftMD Treatment Procedures. is run and the drilling fluid is circulated 10 barrels of drilling flUid. of Canqor 303A to this 110 barrels. barrels of drilling fluid with Canqor 303A have been corrosion control in the 4·1/2" x 7" annulus. IFE . . Marathon Oil Company Well Name: Susan Dionne #2 Rev #1 Location: Kenai, Alaska. HSE Issues HANDLING OF DRILLING FLUID PRODUCTS HEALTH AND SAFETY 1. Drilling crews should be instructed in the proper procedures for handling fluid products. 2. Personal Protective Equipment (PPE) charts should be posted in the pit room, the mud lab, and the office of the Drilling Forman. 3. PPE must be in good working order and be utilized as recommended by the PPE charts. 4. Product additions should be made with the intent to use complete unit amounts of products (sacks, drums, cans) as much as possible in order to minimize inventory of partial units. 5. Insure all MSDS sheets are up to date and readily available for workers to access for information. ENVIRONMENTAL 1. Insure that all product stored outside is protected from the weather. 2. Do not store partial units (sacks, etc) outside if possible. 3. Properly secure all products for shipment between job sites. 4. When transferring fluid and or cuttings from the rig to trucks, insure all hoses are properly secured. 5. When utilizing the centrifuge solids van, insure all hoses and connections between the van and the rig are secure. ~IFE ~ Product M-I BAR M-I GEL GELEX FLOVIS DUAL-FlO POlYPAC XCD HEC Safe-Carb F, M, C LOWATE Nut Plug M-I Seal F, M, C Mix II F,M,C DESCO CF SPERSENE CF TANNATHIN VENTROl 401 SALT (Solar) BROMIDE (NaBr) & Brine Solution POTASSIUM CHLORIDE - Function Weighting Agent Viscosity control Bentonite Extender Viscosifier Modified Starch Fluid Loss Reducer Viscosifyer Loss Circulation Material Bridging and weighting agent Weighting agent Loss Circulation Material Loss circulation Material Loss circulation Materia! Dispersant Dispersant Dispersant Surfactant Densifier Densifier Shale Inhibitor IFE Marathon Oil Company Well Name: Susan Dionne Location: Kenai, Marathon Oil Con1pany Well Name: Susan Dionne Location: Kenai, Alaska. Product CAUSTIC SODA CAUSTIC POTASH BORAX SAPP SODA ASH SODIUM BICARBONATE CITRIC ACID BIOBAN BP-PLUS GREEN CIDE 25G - DEFOAM X - G-SEAL KLA-GARD TEX D-D CWT Concor404 SAFEKLEEN AsphasolD Soltex SafeScav NA Function Alkalinity control pH Modifier Inorganic Borate Sodium Pyrophosphate Alkalinity control Alkalinity control pH Adjuster Biocide Biocide Defoamer Sized graphite LCM Shale Control agent Lubricant Detergent Corrosion Inhibitor Drilling fluid additive Shale Inhibitor Shale Inhibitor Oxygen Scavenger IFE . . Marathon Oil Company Well Name: Susan Dionne #2 Rev #1 Location: Kenai, Alaska. Product Health and Safety Reference HMIS HAZARD RATINGS HAZARDOUS MATERIALS IDENTIFICATION SYSTEM (HMIS) HAZARD RATINGS 4 - Severe hazard 3 - Serious hazard 2 - Moderate hazard 1 - Slight hazard o - Minimal hazard * An asterisk next to the health rating indicates that a chronic hazard is associated with the material. HMIS PERSONAL PROTECTIVE EQUIPMENT INDEX A - Safety Glasses B - Safety Glasses, Gloves C - Safety Glasses, Gloves, Synthetic Apron D - Face Shield, Gloves, Synthetic Apron E - Safety Glasses, Gloves, Dust Respirator F - Safety Glasses, Gloves, Synthetic Apron, Dust Respirator G - Safety Glasses, Gloves, Vapor Respirator H - Splash Goggles, Gloves, Synthetic Apron, Vapor Respirator I - Safety Glasses, Gloves, Dust and Vapor Respirator J - Splash Goggles, Gloves, Synthetic Apron, Dust and Vapor Respirator K - Air Line Hood or Mask, Gloves, Full Suit, Boots X - Consult your supervisor for special handling directions r'J ~ ~IFE ~ . . Marathon Oil Company Well Name: Susan Dionne #2 Rev #1 Location: Kenai, Alaska. Contacts Contact Title e-mail Work Cellular Pete Berga Drilling pkberga@marathonoil.com 907564-6319 907 231-0663 Marathon Superintendent Will Tank Drilling Engineer wjtank@marathonoil.com 907 564-6310 907 529-0551 Marathon Don Eynon Completion Engineer deeynon@marathonoil.com 907283-1337 907 398-9954 Marathon Tony Tykalsky Project Engineer ttykalsky@miswaco.com 907274-5011 907 227-2412 MISWACO Gus Wik Warehouse Manager gwik@miswaco.com 907776-8722 907776-8680 MISWACO Bob Williams Senior Field williamsfamily49@hotmail. 907248-5857 907 590-3636 MISWACO Engineer com (home) Locke Rooney Field Engineer rooneyl@alaska.net 907 235-0598 907 590-3636 MISWACO (home) Gene Anderson Drilling Foreman 907283-1312 Marathon Roland Lawson Drilling Foreman 907283-1312 Marathon Larry Meyers Drilling Foreman 907283-1312 Marathon Dave Morris Drilling Foreman 907283-1312 Marathon . MI Project Engineer and Tech Service Engineer will coordinate between the Marathon office, rig, warehouse, and the M-I field engineers. . Well progress will be monitored to look for any changes, which will improve the efficiency of the operation or avert trouble. r:!RtIFE ~ Check No Check Date Bank Bank No vend. Marathon Oil Company POBox3128 Houston. TX 77253 . ~c'è¿~~¥iSþ"Ä~ABLE DEPARTMENT Accts Payable - Customer Serv Phone: 713-296-4336 Hndlg 1129288 06/10/2004 NCBAS 7780 5001123 Al A0100.00 06/09/2004 1900016220 TOTAL: 100.00 100.00 100.00 100.00 (FOLD ON PERFORATION BELOW AND DETACH CHECK STUB BEFORE DEPOSITING) _ -¡.. ~[.j "If~'-"i: IIJ ~I.~'i-"'I¡I ~' :¡~ II~[~:'~' ~I -.~'~I -,._: I: (~:I:{~ ~tI :,~t~~(e' ~lIJ ~I..~~¡:t I~.~J [.~. =*._: I =t .I~I : (: ~a;')!¡'fl{'~~lt~\I~!:1¡'jl,e;;I'lil~¡I~.n~'t FOBM 2501Hev5/00 Marathon Oil Company 111000 . . 2 ~ 2 B B HI : 0 ~ . 20 :J¡ B ~ 5 I: O. B :J¡ ~ B ~ III . . TRANSMIT AL LETTER CHECK LIST CIRCLE APPROPRIATE LETTERIP ARAGRAPHS TO BE INCLUDED IN TRANSMITTAL LETTER WELL NAME , C5'dV) (J~hI7Þ_..jt Ä PTD# Development Service CHECK WßA T APPLIES ADD-ONS (OPTIONS) MULTI LATERAL (If API number last two (2) digits are between 60-69) PILOT (PH) Exploration Stratigraphic "CLUE" The permit is for a new wellbore segment of existing well·. . Permit No, . API No. Production should continue to be reported as a function· of the original API number stated above. HOLE In accordance with 20 AAC 25.005(1), aU records, data and logs acquired for the pilot hole must be clearly differentiated In both name (name on permit plus PH) and API Dum ber (50 70/80) from records, data and logs acquired for well (name on permit). SPACING .jr EXCEPTION DRY DITCH SAMPLE Tbe permit is approved subject ·to fuD compliance with 20 AAC 25.055. Approval to perforate and produce is contingent upon issuance of a conservation order approving a spacing exception. (Company Name) assumes the liability of any protest to tbe spacing .exception that may occur. An dry ditcb sample sets submitted to the Commission must be in no greater than 30' sample intervals from below tbe permafrost or from where samples are first caught and 10' sample iJ:itervals through target zones. /f-:i. N.ïI ç~¡hifl '" z~L;; BJbr1n ~ /1""~ ~/, -> »¿ Field & Pool S DIONNE. TYONEK UNDEF GAS - 750500 Well Name: SUSAN DIONNE 2 Program DEV Well bore seg 0 PTD#: 2041 070 Company MARATHON OIL CO nitial ClasslType DEV 11-GAS GeoArea Unit On/Off Shore On Annular Disposal 0 Administration 1 P~rmitfee attached_ _ _ _ - - - - - - - - - - - - - - - - - _ Yes - - -- - - - - - - - - - - - - - - - - - - - - - - 2 .Leas~_number _appropriate_ _ _ _ . - - - - - - - - - - - - - - - - - . Y~s - - - - - - - - - - - - - - - - - 3 _U_nlque weltn_am~_a!1d oumb_er _ _ _ _ _ . . _ _ _ _ _ _ _ _ _ _ _ _ . . _ _ - - - - - - - - Y~s - - - - - - - - - - - - - - - - - - - - - . - - -- -. . - - - - - - - - - - - - - - - . - - - - - - - 4 WeIUQc¡;¡t~d in a_ d_efine.dppol _ - - - - - - - - - _ _ No - - - - - - - - -- 5 WelUQcaled proper _dlsta!1ce_ from driJling unilb_ound_al)' .. _ _ _ _ No_ _ _ _ Thi!; wellrequlres_ a !;paciog exception be_cause jt's Jocated within t5.00' _of _ _ . _ 6 WeJUoc¡;¡ted proper .distance_ from other wells_ . _ _ _ _ - - - - - - Y~s _ _ _ . a prperty.boundry_ 20 MC 25.05.5(a){2}JcoTltacte_d.BrockHjd.deI6116_and a!;ked for a SE _applicatioo.HPC 7 S_ufficienLacreageaYailable [ndrilJiog unjt - - - - - - - - - - - - Y~s - - - - - - - - - - - - - - - - 8 Jf.deviated, js_ weJlbore platiocJu.ded _ _ _ . . _ _ _ _ . . . . - - - - - Y~s - - - - - - - - - - - - - - - - 9 .Operator ooly affected party. . . - - - - - - - - - - - -- - - - - _ No. - - - - - - - - - - - - - - -- 10 .Operator has.appropriate.b.ond inJorce . . . . . . . . . . . . . . . . . . . _. . .... .Y~s - - - - - - - - - - - - - - - - - - - - - - - -- 11 P~rmit ca!1 be issued without co.nSEHvatioo order _ _ _ _ . . _ _ No_ _ _ . . se.e _abov.e. . _ _ . . . - - - - - - Appr Date 12 P~rmil ca!1 be issued witbout ad.mioistratille.approvaJ . . - Y~s - - - - - - - - - - - - RPC 6/17/2004 13 Can permit be approved before 15-day wait No . 14 Well Jocaled within area an_d_strata .authorized by.lnjectioo Ord~r # (pulIO# in_ c.o(nm.ents) (fQr .NA - - - - - - - - - - - 15 .AJI wells.wit!1if\.1l4.llJite.area.of reyiew id~otlfied (For !;ervj~.w.elJ OOly). . . . . . _ . . . . . . .NA - - - - - - - - - - - - - - - - - - - - - - - -- 16 Pre-produced i!1jector; .durationof pre-pro.ductipn Less. than 3 mooths. (for.service well onJy) .NA - - - - - - 17 ACMP.Fjod]ngof Consiste!1cy.h.as beenjs_s!.Ied.forJbis pr.oiect . . . . NA - - - - ~ - - - - - - - - - - - Engineering 18 COl1ductor stringprov[ded . - - - - - - - - - - - - - - -- Y~s · . . . 1 QO' 1\ID. . . . . . . . . . . . . . . 19 Sudace .casiogprQtec!s. all_known. USDWs . - - - - - - Y~s - - - - - - - - - - - - - - - - - - - 20 _CMTv.olad~qu.ateJo circ_uLate_o.n.cooductpr.& SUJtcsg _ . . - - - - - - Yes _ . . . Mequate exce&s. . _ 21 .CMT voL adequ.ateJo tie-i.n .long _stri!1g tosud C!;g. . . .Yes - - - - - - - - - - - 22 .CMTwill Coyera]l kIJo.w.nproductiye bori~on.s. . . . . . . . . . . Y~s - - - - - - - - - - - - - 23 C_asing desig!1s ade¡¡ua_te for C..T. B& pe!TIJafr_ost _ _ . . - - - - - Yes - - - - - - - - - - - - - - - - 24 .A.dequatetan.kageor re.serye pit. _ . . . - - - - - - - - -- Y~s · . . . GlaçierRig 1.. - - - - - - 25 Jfare-.drill~ basa. to,.403 for abandonme.nt be~11 approved. - - - - NA . . New well, - - - - - 26 .A.dequate-"\lellbor~ separatjo.n.propo!;ed _ . . . . . . . . . . . . _ . . . . . . . .Yes - - - - - - - - - - - - - - - - - - - - - - - -- 27 Jf.div~r::ter .req.uiJ~d, does it meet reguJatioos_ _ - - - - - -- Yes - - - - - - - - - - - - - - - - - - - - - Appr Date 128 .DriUing fluid_ program schematic_& eC .uip Jistadequale _ _ - - - - - - - Y~s · . . . MaxMW9,6.ppg._ . . . . . . . . . WGA 6/17/2004 29 BOP_Es,.d.othey meetreguJatipo . . . . . . . . . . . . _ . . - - - - .Y~s - - -- - - - - - - - e 30 _BOPE.press rating appropriate; .test lo.(pu! psig if\ .comments). . - - - - - Yes · . . . Test to 2500. psi. I\lIS~ 2003 psi. 31 _C.hpkemanifold compJies. w/APIRfJ-53 (May 84L . . - - - - - - Y~s - - - - - - - - - - -- 32 Work will occur withoutoperatjonsbutdo.w.n - - - - - - - - - - - Y~s - - - - - - - 33 J!; pre&e!1ce of H2S gas prob.able. - - - - - - - - - - .No_ - - - - - - - - - - - - 34 Mechanlcal.coIJdit[o!1 of w~lIs withio J\OR verified (Fpr. s.erv]c~ w~1J only) _ NA - - - - Geology 35 P~rmit c_an be issued wlo hydrogen. sulfide measures _ . . . - - - - Y~s - - -- - - - - - - 36 Data_preseIJted on potential oveJRressur~ .zones _ _ . . . _ . . . . . . NA Appr Date 37 .Sei.smicanalys.is. of sbaJlow gas zones. . . . . . _ . NA - - - - - - - - - - - - - - - - - 38 S~abed .cooditioo sl!rvey(if off-sh.ore) . - - - - - - - - - - - - - - - -- NA - - - - 39 . Contact nam.elphoneJor.we~kly progress reports [exploratpr:yo!1IYl . . _ NA - - - - - - - - - - - Geologic Engineering Public Commissioner: Date: Comm issioner: Date Commissio. Pr7S b//7/C/- ~0ý . . Well History File APPENDIX Information of detailed nature that is not particularly germane to the Well Permitting Process but is part of the history file. To improve the readability of the Well History file and to simplify finding information, information of this nature is accumulated at the end of the file under APPENDIX. No special effort has been made to chronologically organize this category of information. ,1/ / f!} ¿ f} SUSAN DIONNE #2 SEe 6 TiS Ri3W SM 2004 - August 19, 2004 Geologist Logging (.1Y1') MARATHON OIL COMPANY SUSAN DIONNE #2 TABLE OF CONTENTS 1 MUDLOGGING EQUIPMENT AND CREW.....................................................................2 1.1. EQUIPMENT SUMMARy......... ..... .......... ......... ..... .............. ............... ....... ....... ...........2 1.2. PERSONNEL........... ............... .... ....... ....... ..................... ...................... ........................2 2. GENERAL WELL DETAILS ...... ..... .... ......... ......... .............. ............... .... .......................3 2.1. OBJ ECTIVES............................................................................................................... 3 2.2. WELL RESUME........................................................................................................... 3 2.3. HOLE DATA ............. ........ ...................... ..... .............. ............... ......... .......... ........ ........3 3. GEOLOGICAL DATA..... ....... ............ ......... ... .......... .... .... ........... ........... ... ............... ......4 3.1. LITHOLOGy......... .... ....... ......... .............. ...... ..... .......... ......... ..... ..... ...... ....... .................4 3.2. SAMPLING PROGRAM AND DISTRIBUTION ......................................................... 16 4. DRILLING DATA...... .... ........ .... ... .......... ............. ..... .... ........... ................. ....... .......... .... 17 4.1. DAILY ACTIVITY SUMMARy........... ..... .................. ....... ............. ........... .............. .... 17 4.2. SURVEY RECORD ........ ......... ..... ........ ............... ........ ... ........... .................. ...............20 4.3. MUD RECORD...... ........... ............ ...... ....... ......... ...... ....... ............... .... .... ... ........... .....26 4.4. BIT RECORD...... ................... ..... ............. ......... ...... ....... ...... ........... ........... ...............27 4.5. DRILLING PROGRESS CHART ....... ......... ...... ....... ............................ ............... ......28 DAILY REPORTS APPENDIX I FORMATION LOGS APPENDIX II DRILLING DYNAMICS LOGS APPENDIX III [~ EPOCH 1 (.M) MARATHON OIL COMPANY SUSAN DIONNE #2 1 MUDLOGGING EQUIPMENT AND CREW 1.1. EQUIPMENT SUMMARY Parameter Equipment Type And Position Total Downtime Standard Air Drive Trap Mounted In Ditch Gas Possum Belly; FID Total Hydrocarbon 0 Analyzer And Chromatograph Rate of Penetration (ROP) Primary Drawworks Shaft Encoder On 0 Drum Shaft Pump stroke counter Extemally Mounted Magnetic Proximity 0 Sensor Hookload / Weight on bit (WOB) Hydraulic Pressure Cell 0 Drill string torque Digital Signal From Top Drive 0 Top drive rotary (RPM) Non-Functional on Glacier #1 0 Standpipe Pressure Hydraulic Pressure Cell 0 Mud flow in lout (MFII MFO) MFI Derived From SPM I MFO From 0 Flow Paddle Pit volumes Ball Float Pit Sensors In All Pits And 0 Trip Tank Driller's work station Explosion Proof Touch Screen 0 Casing Pressure Hydraulic Pressure Cell 0 Company man's work station HP COMPAQ 0 Toolpusher's work station HP COMPAQ 0 Geologist's work station HP COMPAQ 0 Pit's work station Explosion Proof Touch Screen 0 1.2. PERSONNEL Unit Number. ML006 Comments Years Days Days Days Mudloggers Experience at Sample Catchers at Technician at well well well Ralph Winkelman 14 10 Todd Jaggers 19 Steve Forrest 2 John Lundy 12 25 Sergei Pokrovsky 22 Pete Ramsey 1 Mindaugas 2 15 Kuzminskas [~ EPOCH 2 (.IJ!!J MARATHON OIL COMPANY SUSAN DIONNE #2 2. GENERAL WELL DETAILS 2.1. OBJECTIVES The objective of SUSAN DIONNE #2 is to drill, with minimum problems, a directional development hole to Tyonek Formation target zones in the Ninilchik Field, perform a standard completion and successfully produce a high yield development gas well. 2.2. WELL RESUME Operator: Well Names: Field: County: State: Company Representatives: Location: Classification: API#: Permit #: Activity Code: Rig Name I Type: Elevation: Ground, RKB Primary Target: I Target Depth: Secondary Target: I Target Depth: Spud Date: Total Depth Total Depth Formation: Total Depth ------Date: MWD Company: I Tools Run: Directional Drilling: Drilling Fluids Company: Logging Company: MARATHON OIL COMPANY Susan Dionne #2 Ninilchik Field1 Kenai Borough Alaska Rowland Lawson, Dave Morris, Larry Meyer 219' FSL, 1,418' FEL, SEC 6, T1 S, R13W, S.M. Development Gas 50 -133 - 20541 - 00 204-107 NIA Glacier #11 Land Double 135' GL, 156' RKB Tyonek, T-2, T-3, Several targets of opportunity Tyonek, T-2, T-3, Several targets of opportunity 7/29/04 11094" Tyonek 8/19/2004 Baker Hughes Inteq I Directional Baker Hughes Inteq M-I Drilling Fluids Reeves Wireline Services, Run with Quad-Combo logging tools. 2.3. HOLE DATA Susan Dionne #2 Hole Maximum T.D. Mud Deviation Shoe Depth F.I.T. Section Depth Formation Weight ('inc) Casing MD TVD (ppg) MD TVD 12 'X" 1927' 1575' Beluga 9.4 62.9 9 5/8" 1927 1575' 14.5 8'W 5962 3433 Tyonek Xx 50.0 7" 5942 3420 14.5 7" 11094 8007 Tyonek 9.7 20.0 4 'W' [1 EPOCH 3 (!!ê'J MARATHON OIL COMPANY SUSAN DIONNE #2 3. GEOLOGICAL DATA 3.1. LITHOLOGY Coal (1950' -1960') = dark gray black to black and trace dark brown; firm to soft; brittle; sub bituminous to lignitic; shaly in part; grades to dark gray brown and brown carbonaceous shale; hackly. Tuffaceous Claystone (1950' - 2100') = medium to light gray; trace light gray brown secondary hue; firm to soft to very firm; dull earthy; clayey to slightly gritty texture; good adhesiveness, fair to good cohesiveness; grades to tuffaceous siltstone; trace to abundant micro-thin coaly/carbonaceous inclusions and laminations; slightly sandy in part; softer material is slightly to moderately calcareous. Sand/Sandstone Conglomerate (1950' - 2150') = light gray to tan; soft to very soft to disaggregated; fine lower to very fine and medium sand with trace to locally abundant coarse grains or pebble fragments; finer fraction is predominantly clear and translucent quartz and volcanic glass; coarser fraction is predominantly medium to dark gray lithic fragments; light tan to white to grayish yellow ashltuff supporting matrix; matrix is hydrophilic and easily washes away in water; non to very slightly calcareous. Tuffaceous Siltstone (2000' - 2200') = medium to light gray to gray brown; firm to soft; irregular to blocky fragments; sandy in part; grades to adjacent tuffaceous claystone; dull earthy; gritty texture; moderately cohesive; poorly adhesive; hydrophilic; soluble; trace to abundant micro-thin coaly laminations and inclusions; non to slightly calcareous. Tuffaceous Claystone (2100' - 2350') = medium to light gray; trace light gray brown secondary hue; firm to soft to very firm; dull earthy; clayey to slightly gritty texture; good adhesiveness, fair to good cohesiveness; hydrophilic; very soluble; grades to tuffaceous siltstone; trace to abundant micro-thin coaly/carbonaceous particles and laminations; slightly sandy in part; slightly to moderately calcareous. Sand/Sandstone Conglomerate ( 2200' - 2400') = light gray to tan; soft to very soft to disaggregated; fine lower to very fine and medium sand with trace to locally abundant coarse grains or pebble fragments; generally angular to subangular to subspheroidal; good trace to abundant subspheroidal translucent white to clear volcanic macro-shards; finer fraction is dominantly clear and translucent quartz and volcanic glass with abundant dark gray and black lithiclmineral grains; trace orange; coarser fraction is predominantly medium to dark gray lithic fragments; light tan to white to grayish yellow ashltuff hydrophilic soluble supporting matrix; non to very slightly calcareous. Tuffaceous Siltstone (2200' - 2500') = medium to light gray to gray brown; firm to soft; irregular to blocky fragments; sandy in part; grades to adjacent tuffaceous claystone; dull earthy; gritty texture; moderately cohesive; poor1y adhesive; hydrophilic; soluble; trace to abundant micro-thin coaly laminations and inclusions; non to slightly calcareous. Sand/Sandstone Conglomerate ( 2400' - 2600') = becoming medium to dark gray; very soft to unconsolidated or disconsolidated; fine lower to very fine and medium sand with trace to locally abundant coarse grains or pebble fragments; generally angular to subangular to subspheroidal; good trace to abundant subspheroidal translucent white to clear volcanic bomblets and fragments of same; smaller fraction is predominantly medium and dark gray lithic/mineral grains with good trace to abundant clear to translucent white quartzlvolcanics; coarse fraction tends to consist of about equal parts subspheroidal clear and translucent white volcanic macro-shards and medium to dark gray lithic graywacke fragments; trace orange ; commonly suspended in a light tan to white to grayish yellow ashltuff/clay supporting matrix; matrix is hydrophilic and easily washes away in water; non to very slightly calcareous. Coal (2680' - 2700') = dark gray black 0 black and trace dark brown; firm to soft; brittle; sub bituminous to lignitic; shaly in part; grades to dark gray brown and brown carbonaceous shale; no conchoidal or birdeye fracture noted; hackly. [~ EPOCH 4 (.M'J MARATHON OIL COMPANY SUSAN DIONNE #2 Tuffaceous Siltstone (2500' - 2750') = medium to light gray to gray brown; trace very light greenish gray; firm to soft; irregular to blocky fragments; sandy in part; grades to adjacent tuffaceous claystone; dull earthy; gritty texture; moderately cohesive; poorly adhesive; hydrophilic; soluble; trace to abundant micro-thin coaly laminations and inclusions; non to slightly calcareous. Sand/Sandstone Conglomerate ( 2600' - 2850') = medium to light gray; salt & pepper appearance; soft to very soft to disaggregated; angular to subangular to subdiscoidal; fine lower to very fine to medium grain; individual grains are translucent white to clear quartz, light to medium gray lithic fragments and very dark gray to black mineralnithic grains; very light gray white to light tan ash/tuff supporting matrix which is very hydrophilic and easily washed away; moderate to very calcareous. Tuffaceous Claystone (2840' - 2980') = light to medium gray with light brown to brownish gray secondary hues; very soft and very sticky; amorphous, globular, shapeless cuttings, rare tabular for firmer pieces; silty to clayey texture; dull to earthy luster; fair to good adhesiveness; poor to fair cohesiveness; hydrophilic; moderate to very expansive when hydrated; very soluble; trace black micro-thin carbonaceous laminations and inclusions when firmer; trace very light gray to grayish white ashy tuff. Sand ( 2900' - 3040') = medium to dark gray overall with a strong "salt and pepper" appearance, individual grains dominantly medium to dark gray, light to translucent gray, clear to frosted quartz and volcanic glass, common black, common light to medium greenish gray; very fine lower to medium lower, dominantly fine lower to upper; angular to subangular; moderately well sorted; disaggregated; common light to medium gray clay supporting matrix; non to slightly calcareous. Tuffaceous Claystone! Tuffaceous Siltstone ( 3000' - 3140') = light to medium gray with light brown secondary hues; amorphous, shapeless to slightly firm rounded wedge shaped cuttings; generally very soft and very sticky; dull luster; silty to clayey to slightly gritty texture from very fine grain suspended sands poor cohesiveness fair to good adhesiveness; hydrophilic; very soluble; very expansive when hydrated; trace to common black, micro-thin carbonaceous lamination and inclusions; trace light gray to light grayish white ashy tuff. Sand ( 3060' - 3240') = medium to dark gray overall with a strong "salt and pepper" appearance, individual grains dominantly medium to dark gray, light to translucent gray, clear to frosted quartz and volcanic glass, common black common light to medium greenish gray; very fine lower to coarse lower, dominantly fine upper to medium lower; angular to subangular; moderately well sorted; disaggregated; common light to medium gray clay supporting matrix; non to slightly calcareous; trace black carbonaceous material! coal, present as very thin beds. Coal (3180' - 3220') = black with dark brown secondary hues; very firm to moderately hard; brittle to fragile at times; platy to splintery; dominantly planar fracture with trace conchoidal and bird eye; flaky at times; earthy to slightly resinous luster; smooth to slightly gritty texture; commonly grading to poorly developed carbonaceous material; fibrous at times, woody; easily visible, common to abundant outgassing bubbles; trace bright whitish yellow mineral fluorescence from amber I resinite. Tuffaceous Claystone! Tuffaceous Siltstone ( 3100' - 3360') = light to medium gray with light brown secondary hues; amorphous, shapeless to slightly firm rounded wedge shaped cuttings; generally very soft and very sticky; dull luster; silty to clayey to slightly gritty texture from very fine grained suspended sands; poor cohesiveness; fair to good adhesiveness; very hydrophilic; very soluble; very expansive when hydrated; common to abundant black microthin carbonaceous inclusions and laminations; trace light gray to light grayish white ashy tuff; common thin sandy interbeds; non to slightly calcareous. Coal (3200' - 3380') = black; dark brown secondary hues; very firm to brittle to moderately hard; fragile; hackly, platy, flaky to splintery; dominantly planar fracture with trace conchoidal and birdeye fracture; earthy to slightly resinous luster; smooth to slightly gritty texture; commonly grades to carbonaceous shale; fibrous in part; sub-bituminous grading to lignite; trace woody texture; trace outgassing at 5 minutes; good outgassing at 15 minutes; trace amber/resinite with dull yellow white mineral fluorescence. [1 EPOCH 5 (.M) MARATHON OIL COMPANY SUSAN DIONNE #2 Sand/Sandstone Conglomerate ( 3460' - 3600') = light to medium gray with a light gray-brown secondary hue; soft to very soft; disaggregated; fine to very fine to occasionally medium grain; moderately well overall to locally well sorted; fine fraction is predominately angular to subangular and subdíscoidal, light to medium gray with abundant dark gray and black lithic/mineral grains; very fine and medium fraction is dominated by subdiscoidal to angular, clear to translucent white quartz/volcanics fragments; trace to common light gray green ; very light gray white to light gray clay/ash supporting matrix which is very hydrophilic, expansive when hydrated; non to very slightly calcareous. Tuffaceous Claystone/ Tuffaceous Siltstone ( 3360' - 3700') = light to medium gray with light brown secondary hues; amorphous, shapeless to slightly firm rounded wedge shaped cuttings; generally very soft and very sticky; dull luster; silty to clayey to slightly gritty texture from very fine suspended sand; poor cohesiveness fair to good adhesiveness; very hydrophilic; very soluble; very expansive when hydrated; common to abundant black microthin carbonaceous inclusions and laminations; trace light gray to light grayish white ashy tuff; common thin sandy interbeds; non to slightly calcareous. Sand/Sandstone Conglomerate ( 3600' - 3800') = light to medium gray with a light gray-brown secondary hue; soft to very soft; disaggregated; fine to very fine to occasionally medium; moderately well overall to locally well sorted; fine fraction is predominately angular to subangular and subdiscoidal, light to medium gray with abundant dark. gray and black lithic/mineral grains; very fine and medium fraction is dominated by subdiscoidal to angular, clear to translucent white quartzlvolcanics fragments and intact bomblets; trace to common light gray green; trace pale rose and dull olive ; the whole suspended in a very light gray white to light gray clay/ash supporting matrix which is very hydrophilic, expansive when wet and easily jetted away in water; non to very slightly calcareous. Tuffaceous Claystonel Tuffaceous Siltstone ( 3700' - 3900') = light to medium gray with light brown secondary hues; amorphous, shapeless to slightly firm rounded wedge shaped cuttings; generally very soft and very sticky; dull luster; silty to clayey to slightly gritty texture from very fine grain suspended sands grades to thin, medium to fine grain sandstonelsandstone conglomerate; poor cohesiveness fair to good adhesiveness; very hydrophilic; very soluble; expansive when hydrated; common to abundant black micro-thin carbonaceous inclusions and laminations; trace light gray to light grayish white ashy tuff; common thin sandy interbeds; non to slightly calcareous. Sand/Sandstone Conglomerate ( 3800' - 4040') = medium to light gray with a light gray-brown secondary hue; dirty salt in pepper appearance; soft to very soft; disaggregated; fine to very fine to occasionally medium grain; moderately well overall to locally well sorted; fine fraction is predominately angular to subangular and subdiscoidal, dark. to medium gray with good trace light gray and white to clear grains dominated by quartz of all sizes; abundant clear glass micro-shards and macro-shards; trace to common light gray green ; trace pale rose and dull olive ; white to very light gray to light gray clay/ash soluble hydrophilic supporting matrix; expansive when hydrated; non to very slightly calcareous. Tuffaceous Claystone/ Tuffaceous Siltstone (3900' - 4180') = light to medium gray with light brown secondary hues; amorphous, shapeless to slightly firm rounded wedge shaped cuttings; generally very soft and very sticky; dull luster; silty to clayey to slightly gritty texture from very fine grain suspended sands grades to thin, medium to fine grain sandstonelsandstone conglomerate; trace to common thin coaly intelVals grading to fissile carbonaceous shale and brittle silty carbonaceous material; poor cohesiveness fair to good adhesiveness; very hydrophilic; very soluble; very expansive when hydrated; common to abundant black microthin carbonaceous inclusions and laminations; trace light gray to light grayish white ashy tuff; common thin sandy interbeds; non to slightly calcareous. Sand (4140' - 4260') = medium to dark. gray overall with a strong "salt and pepper" appearance, individual grains dominantly medium to dark. gray, light to translucent gray, clear to frosted quartz and volcanic glass, common black very fine lower to coarse lower, dominantly fine upper to medium lower; angular to subangular; moderately well sorted; disaggregated; common light to medium gray clay supporting matrix; non to slightly calcareous. [1 EPOCH 6 (!:ð'J MARATHON OIL COMPANY SUSAN DIONNE #2 Tuffaceous Claystone (4200' - 4380') = light to medium gray with light brown to brownish gray secondary hues; very soft and very sticky; amorphous, globular, shapeless cuttings, rare tabular for firmer pieces; silty to clayey texture; dull to earthy luster; fair to good adhesiveness; poor to fair cohesiveness; hydrophilic; moderate to very expansive when hydrated; very soluble; trace black microthin carbonaceous laminations and inclusions in firmer fragments; trace very light gray to grayish white ashy tuff. Sand ( 4280' - 4420') = medium to dark gray with strong "salt and pepper" appearance, individual grains dominantly medium to dark gray, black, light gray to translucent, clear quartz and volcanic glass, trace greenish gray and greenish blue lithics; very fine upper to coarse lower, dominantly fine upper to medium lower; angular to subangular; poor to fair sorting; disaggregated with medium gray, clay supporting matrix; non calcareous; trace black carbonaceous materiaV coal; no sample fluorescence. Tuffaceous Claystone ( 4360' - 4500') = light brownish gray with light brown secondary hues; very 50ft; slightly sticky; very silty in part; amorphous, shapeless, globular cuttings; silty to clayey to slightly gritty from suspended sands; dull luster; hydrophilic; very soluble; very expansive when hydrated; non calcareous; trace microthin, black carbonaceous laminations and inclusions; trace thin coal stringers. Sand ( 4440' - 4560') = medium to dark gray with strong "salt and pepper" appearance, individual grains dominantly medium to dark gray, black, light gray to translucent, clear quartz and volcanic glass, trace greenish gray and greenish blue lithics; very fine upper to coarse lower, dominantly fine upper to medium lower; angular to subangular; poor to fair sorting; disaggregated with medium gray, clay supporting matrix; trace medium to dark gray sandstone; very hard; very fine grain; very calcareous; trace very thin coal stringers throughout; trace to common light gray to light grayish white ashy tuff; non calcareous. Sand ( 4560' - 4640') = medium to dark gray with strong "salt and pepper" appearance, individual grains dominantly medium to dark gray, black, light gray to translucent, clear quartz and volcanic glass; very fine upper to coarse lower dominantly fine upper to medium lower; angular to subangular; fair to moderately well sorted; disaggregated with medium gray, clay supporting matrix; common to abundant medium to dark gray ashy tuff, very fragile and pulverulent. Tuffaceous Claystone (4580' - 4700') = light brownish gray with light brown secondary hues; very soft; slightly sticky; very silty in part; amorphous, shapeless, globular cuttings; silty to clayey to slightly gritty; dull luster; hydrophilic; very soluble; very expansive when hydrated; non calcareous. Sand/Sandstone (4500' - 4700') = medium to dark gray; overall dirty salt in pepper appearance; soft to very soft; disconsolidated or unconsolidated; fine upper to medium lower, predominantly fine upper; moderately well sorted overall to locally well sorted, particular1y where fine grain size lower size predominates; angular to subangular to trace sub-discoidal; dark to medium gray with lesser clear to translucent white quartzlvolcanics; rare unbroken volcanic "bomblets" with a "welded" appearance resembling eolian frosting; trace phlogopite mica (series) flakes; trace pale rose and dull orange; the whole suspended in a light gray to off white ashlclay supporting matrix which is very hydrophilic and easily washed away in water; trace ash interbeds; non to very slightly calcareous. Tuffaceous Claystone (4700' - 4900') = soft to firm; generally globular to irregular fragments; highly eroded by circulation; poor1y sorted; silty to sandy; grades to clayey tuffaceous siltstone; dull earthy; hydrophilic; expansive when hydrated; easily washed away by water; poor to moderately cohesive; poor1y adhesive; trace to abundant micro-thin coaly interbeds, laminations and particles; non calcareous. Sand/Sandstone ( 4700' - 5000') = medium to dark gray; overall dirty salt in pepper appearance; 50ft to very soft; disaggregated; fine upper to medium lower, predominantly fine upper; moderately well sorted overall to locally well sorted (especially if fine); angular to subangular to trace sub-discoidal; dark to medium gray with lesser clear to translucent white quartzlvolcanics; rare unbroken volcanic "bomblets" with a ''welded'' appearance; trace possible phlogopite flakes; trace pale rose and dull orange; the whole suspended in a light gray to off white ash/clay supporting matñx which is very hydrophilic and easily washed away by water; trace ash interbeds; non to very slightly calcareous. [~ EPOCH 7 (!/!) MARATHON OIL COMPANY SUSAN DIONNE #2 Coal (5050' - 5140') = black to very dark gray black to trace dark brown; irregular bladed to tabular fragments abundant hackly material; brittle; dull earthy to resinous predominates; trace vitreous; trace conchoidal fracture; no birdeye fracture noted; trace poorly developed cleat; trace white mineral residue on fracture and bedding planes. Tuffaceous Claystone (4900' - 5160') = soft to firm; generally globular to irregular fragments; silty to sandy; grades to clayey tuffaceous siltstone; dull earthy; hydrophilic; expansive when hydrated; easily washed away in water; poor to moderately cohesive; poorly adhesive; trace to abundant microthin coaly laminations and inclusions; trace thin coaly interbeds; non calcareous. Sand/Sandstone ( 5000' - 5300') = medium to dark gray; overall dirty salt in pepper appearance; soft to very soft; disaggregated; fine upper to medium lower, predominantly fine upper; moderately well sorted overall to locally well sorted, particularly where fine grain size lower size predominates; angular to subangular to subdiscoidal; dark to medium gray with lesser clear to translucent white quartzlvolcanics; abundant tiny volcanic "bombletsØ with a "welded" appearance; trace possible phlogopite mica flakes; trace pale rose and dull orange ; light gray to "off-white" ashlclay very hydrophilic supporting matrix which is easily washed away by water; trace ash interbeds; non to very slightly calcareous. Tuffaceous Claystone (5160' - 5360') = soft to firm to occasionally moderately hard; generally globular to irregular fragments; highly eroded by circulation; harder fraction angular and irregular; poorly sorted; silty to sandy in part; grades to clayey tuffaceous siltstone; dull earthy luster; hydrophilic; expansive when hydrated; very easily washed away in water; poorly to moderately cohesive; poorly adhesive; trace to abundant microthin coaly laminations and inclusions; trace to good to bright orange, soft, silty devitrified ash; trace thin coaly interbeds; non calcareous. Coal ( 5420' - 5460') = black to very dark gray black to trace dark brown; moderately hard to firm; shaly in part; irregular bladed to tabular fragments; abundant brittle hackly material; dull earthy to resinous predominates; trace vitreous luster; trace conchoidal fracture and birdeye fracture; trace well developed cleat; trace white mineral residue on fracture and bedding planes; no resin or amber residue noted. Sand ( 5440' - 5560') = medium to dark gray overall with a strong "salt and pepper" appearance, individual grains dominantly medium to dark gray; common pale to colorless transparent to translucent quartz and volcanic glass; common black lithics, very fine lower to coarse lower, dominantly fine upper to medium lower; angular to subangular; moderately well sorted; disaggregated; common light to medium gray clay supporting matrix; scattered dark gray very fine very hard very calcareous sandstone; trace thin coal beds. Tuffaceous Claystone (5580' - 5640') = light brownish gray with light brown secondary hues; very soft; slightly sticky; very silty in part; amorphous, shapeless, globular cuttings; silty to clayey to slightly gritty from suspended sands; dull luster; hydrophilic; very soluble; very expansive when hydrated; poor cohesiveness; fair to good adhesiveness; moderate to very calcareous; note continued safe-carb mud additive contamination; trace black, microthin carbonaceous laminations and inclusions in firm pieces; trace to common thin coal beds. Coal (5500' - 5720') = black with dark brown secondary hues; very firm to moderately hard; brittle to fragile at times; platy to splintery; dominantly planar fracture with trace conchoidal and bird eye fracture; flaky at times; earthy to slightly resinous luster; smooth to slightly gritty texture; very fine ground up cuttings due to PDC bit action; trace mineral fluorescence associated with amber along coal fractures. Sand ( 5660' - 5780') = medium to dark gray with strong "salt and pepper" appearance, individual grains dominantly medium to dark gray, black, light gray to translucent, clear quartz and volcanic glass; very fine upper to coarse lower dominantly fine upper to medium lower; angular to subangular; fair to moderate well sorting; disaggregated with medium gray clay supporting matrix; very soft and shapeless; very soluble; non calcareous; trace to common thin coal beds; trace light to medium gray tuff. [~ EPOCH 8 (!fj"J MARATHON OIL COMPANY SUSAN DIONNE #2 Tuffaceous Claystonel Tuffaceous Siltstone ( 5740' - 5880') = light to medium brownish gray with light brown secondary hues; very soft to slightly finn; amorphous, shapeless cuttings to finner discoidal to rounded wedge shaped; silty to clayey texture; dull to earthy luster poor to fair cohesiveness and adhesiveness; very soluble; hydrophilic; expansive when hydrated; trace black, microthin carbonaceous laminations and inclusions; slight to moderately calcareous; common thin coal beds throughout; trace mineral fluorescence from coals and associated amber deposits. Sand ( 5800' - 5960') = medium to dark gray to grayish black overall with individual grains dominantly medium to dark gray to dark translucent gray, clear, dark greenish gray, black; fine lower to coarse lower, dominantly fine upper to medium lower; angular to subangular; moderately well sorted; disaggregated and soluble medium to dark gray clay matrix; abundant light to medium gray, ashy tuff; overall very calcareous; common thin coal stringers; trace mineral fluorescence from coals. Tuffaceous Claystone ( 5900' - 5960') = light to medium gray to grayish brown; soft, amorphous cuttings; silty to clayey texture; dull luster; acts as supporting matrix for loose sands. Coal ( 5962' - 5980') = black to dark gray black; moderately hard to hard; brittle; hackly in part; tabular to irregular cuttings predominate; trace conchoidal fracture; trace moderately developed cleat; trace silty carbonaceous material; trace white mineral stain on bedding and fracture planes. Tuffaceous Claystone (5960' - 6100') = light brownish gray with light brown secondary hues; very soft; slightly sticky; very silty in part; amorphous, shapeless, globular cuttings; silty to clayey to slightly gritty from suspended sands; dull luster; hydrophilic; very soluble; very expansive when hydrated; non calcareous; trace microthin, black carbonaceous laminations and inclusions; trace thin coal stringers. Tuffaceous Siltstone( 6100' - 6180') = light olive gray to brownish gray; soft to occasionally finn; irregular fracture; massive cuttings habit; earthy to dull; common grading to claystone; smooth to clayey, occasionally gritty texture; common to abundant carbonaceous material and coal fragments; occasionally interbedding with thin conglomeratic sands; slightly to moderately calcareous. Coal ( 6190' - 6220') = dark gray to black; finn friable to moderately hard; dense to brittle; blocky to planar, occasionally conchoidal fracture; massive to occasionally scaly cuttings habit; greasy to waxy, occasionally vitreous; smooth clayey texture; slight to moderate outgassing. Tuffaceous Claystone (6220' - 6280') = light gray to greenish gray; very soft to soft; occasionally finn; irregular fracture; massive; earthy to dull; commonly grades to siltstone; smooth to clayey texture; common interbedded volcanic ashltuff; slightly calcareous; common disseminated carbonaceous material and coal fragments. Sand/Sandstone (6280'- 6340') very light gray to light bluish gray; 80% disaggregated, grains have salt/pepper appearance predominantly quartz with calcareous cement; loose grains subangular to subrounded; fine to very fine upper; moderately well sorted; primarily found suspended in a light gray white to light gray claylash supporting matrix. Coal ( 6330' - 6350') = black to dark gray black; moderately hard to hard; brittle; primarily hackly; fissile in part; occasional larger fragments are tabular to irregular; dull earthy to resinous; trace fine grained calcareous sand residues on bedding planes; trace white mineral stain on partings and fractures. Tuffaceous Claystone ( 6280' - 6440') = light gray with light greenish gray secondary hues; soft to finn, slightly sticky; very silty in part; amorphous, shapeless to globular; silty to clayey to slightly gritty (due to suspended sands); dull luster; hydrophilic; very soluble; expansive when hydrated; non calcareous; trace microthin, black carbonaceous laminations and inclusions; trace thin coal stringers; slightly calcareous. [~ EPOCH 9 (M) MARATHON OIL COMPANY SUSAN DIONNE #2 Sand/Sandstone (6340' - 6500') = very light to light gray with a light bluish gray secondary hue; soft to disaggregated; moderately to well sorted; fine lower to very fine upper, occasionally medium predominantly quartz grains; subangular to subrounded; when consolidated, grains are supported with calcareous clay/ash matrix. Coal (6510' - 6540') = dark gray to black; finn friable to moderately hard; dense to brittle; blocky to planar, occasionally conchoidal fracture; massive to occasionally scaly cuttings habit; greasy to waxy, occasionally vitreous; smooth clayey texture; slight to moderate outgassing. Tuffaceous Claystone (6540' - 6600') = light gray to greenish gray; very soft to soft occasionally finn; irregular fracture; massive cuttings habit; earthy to dull; commonly grading to siltstone; smooth to clayey texture; common volcanic ash/tuff interbeddings; slightly calcareous; common contamination with carbonaceous material and coal fragments; common to abundant tuff/ash interbeddings. Tuffaceous Siltstone( 6600' - 6660') = light olive gray to brownish gray; very soft to soft; irregular fracture; massive cuttings habit; earthy to dull; commonly grading to claystone; smooth to clayey texture; common to abundant carbonaceous material and coal fragments; occasional interbedding with thin conglomeratic sands, predominantly quartz grained; slightly to moderately calcareous. Sand/Sandstone (6670' - 6780') = very light gray white; very light bluish gray secondary hue in finn sandstone; soft to unconsolidated or disconsolidated; subangular to subrounded to subspheroidal; fine lower to very fine upper; at the top of the zone; the lower portion is fine upper to fine and trace medium grain; clear to white translucent quartzlvolcanics; trace light gray; trace black to very dark gray lithic/mineral grains; very marked presence of ashyltuff supporting matrix in coherent cuttings; lower interval (6655'-6680') is coarser overall; much cleaner with no visible ash matrix; very slightly calcareous. Tuffaceous Claystone( 6780' - 6840') = light gray to light brownish gray; soft to occasionally finn; irregular fracture; massive cuttings habit; earthy to dull; common grading to siltstone; smooth to clayey texture; abundant volcanic ashltuff interbeddings; medium to very calcareous; occasional contamination with carbonaceous material. Tuffaceous Siltstone ( 6840' - 6890') = light olive gray to brownish gray; very soft to soft; irregular fracture; massive cuttings habit; earthy to dull; common grading to claystone; smooth to clayey texture; common to abundant carbonaceous material and coal fragments; occasional interbedding with thin conglomeratic sands, predominantly quartz grained; slightly to moderately calcareous. Coal ( 6890' - 6930') = dark gray to black; finn friable to moderately hard; dense to brittle; blocky to planar, occasionally conchoidal fracture; occasionally flaky cuttings habit; greasy to waxy, occasionally vitreous; smooth texture; moderate to strong outgassing; rare to common loose and entrapped amber. Sand/Sandstone (6930' - 7020') = very light gray to yellowish gray; predominantly unconsolidated, grains consolidated by calcareous ashy silt/clay; subangular to subrounded if very fine lower to fine lower, angular to subangular if fine upper to medium lower; 70% quartz, coarser grains predominantly translucent to milky; 30% , including chert, mica and occasional glauconite; poor1y to moderately sorted; estimate medium to good porosity. Tuffaceous Siltstone( 7020' - 7070') = light brownish gray to olive gray; soft to occasionally finn; irregular fracture; massive cuttings habit; earthy to dull; common grading to claystone; smooth to clayey texture; common to abundant carbonaceous material and coal fragments; common interbedding with calcareous volcanic ashltuff. Tuffaceous Slaystone (7070' -7120') = light gray to light brownish gray; soft to occasionally finn; irregular fracture; massive cuttings habit; earthy to dull; common grading to siltstone; smooth to clayey texture; abundant volcanic ashltuff interbeddings; slightly calcareous; common contamination with carbonaceous material. [1 EPOCH 10 (.M') MARATHON OIL COMPANY SUSAN DIONNE #2 Coal (7120' - 7160') = dark gray to black; firm friable to moderately hard; dense to brittle; blocky to planar, occasionally conchoidal fracture; massive to occasionally scaly cuttings habit; greasy to waxy, occasionally vitreous; smooth to clayey texture; moderate to strong outgassing. Tuffaceous Siltstone (7140' -7300') = light to medium gray to gray brown with light bluish to greenish gray secondary hues; firm to soft; blocky to tabular eroded cuttings; gritty to clayey texture; dull earthy; trace thin and microthin coaly laminations; trace coal fine inclusions; slightly to moderately hydrophilic; fair to good adhesiveness; poor cohesiveness; slightly hydrophilic; grades to medium brown and gray claystone; very slightly calcareous. Sand/Sandstone (7100' -7300') = light gray with very light bluish gray and brownish gray secondary hues; soft to slightly firm; very fine lower to fine lower grain; moderately well to well sorted (in sand sizes); silty in part; grades to sandy tuffaceous siltstone; individual grains are predominantly clear to translucent white quartz and volcanics; trace light to dark gray; trace black mineral grains; trace glauconite and small phlogopite series mica flakes; the whole suspended in an ashy supporting matrix; trace to abundant coaly inclusions and microthin coaly laminations; slightly calcareous. Coal (7320' -7420') = black to dark gray black; hard to moderately hard; brittle; fissile in part; hackly in part larger fragments are tabular to irregular; earthy to dulled vitreous common poor1y developed conchoidal fracture; trace rudimentary bird- eye fracture; trace to common woody structure; good trace to abundant white stain on fracture and bedding planes. TuffNolcanic Ash (7420' - 7465') = bluish white to very light gray; soft to friable; irregular fracture; massive cut tings habit; dull; clayey to silty texture; non to slightly calcareous; common interbedding with siltstone and claystone. Tuffaceous Claystone( 7465' -7515') = yellowish gray to light olive gray; soft to firm; irregular fracture; massive cuttings habit with occasionally visible bit abrasions; earthy to dull ; common grading to siltstone and interbedding with volcanic ashltuff; smooth to clayey, occasionally silty texture; common disseminated carbonaceous material and coal; medium to very calcareous. Tuffaceous Siltstone (7515' - 7570') = light to medium gray to brownish gray; 50ft to firm; irregular fracture; massive to occasionally scaly cuttings habit silty to gritty texture; occasional to common thin carbonaceous material/coallaminations; common grading to claystone; commonly acts as matrix to sandstone; slightly to medium calcareous. Sand/Sandstone ( 7570' - 7640') = very light gray to light gray; soft to firm if consolidated; predominantly with ashlclay calcareous matrix; very fine lower to very fine upper, occasionally fine lower; subangular to subrounded; moderately sorted; 60% quartz, predominantly translucent to milky, some smoky; 40% , including common mica, occasional chert and unidentified hard black grains; common thin inclusions of carbonaceous material/coal; estimate poor to occasionally fair intergranular porosity. Coal (7645' - 7695') = brownish gray to brownish black to black; firm to hard, occasionally very hard; dense to brittle; blocky to planar, occasionally conchoidal fracture; massive to occasionally scaly cuttings habit; greasy to waxy; smooth to clayey texture; visible moderate to strong outgassing. TuffNolcanic Ash (7695' - 7740') = yellowish gray to very light gray; soft to friable; irregular fracture; massive cut tings habit; dull; smooth to clayey texture; slightly calcareous; common interbedding with siltstone and claystone; common contamination with carbonaceous material and coal. Tuffaceous Siltstone( 7740' -7790') = light brownish gray to olive gray; soft to occasionally firm; irregular fracture; massive cuttings habit; earthy to dull ; common grading to claystone; smooth to clayey texture; common to abundant carbonaceous materiaVcoallaminations; common grading to claystone and very fine sand. [=I EPOCH 11 ,@) MARATHON OIL COMPANY SUSAN DIONNE #2 Sand/sandstone/Conglomerate Sand (7790' - 7860) = light gray to medium light gray; 80% unconsolidated in sample; fine lower to coarse lower; fine grains predominantly quartz, coarser specs angular to subangular; poorly sorted over all; 70% mostly translucent to milky quartz; 30%common chert, light to medium light green and light red specs; consolidated grains supported predominantly by calcareous ashy matrix with weak greenish yellow fluorescence; estimate fair to good intergrain porosity. Tuffaceous Siltstone (7800' - 7950') = light to occasionally medium brownish gray to olive gray; soft to moderately finn; blocky to irregular massive cuttings where rotating; during slide cuttings trend finer and more eroded by circulation; dull earthy; slightly to very sandy to clayey; grades to both silty sand and claystone; trace to common thin coaly interbeds; trace microthin coaly laminations and inclusions; moderately adhesive; poor1y cohesive; moderately hydrophilic; very slightly calcareous. Coal (7930' - 8100') = black to very dark brownish black; hard to finn; brittle; hackly in part; dull earthy on bedding planes and partings; vitreous on fracture surfaces of larger fragments; smaller fragments are commonly silty, very brittle and grade to carbonaceous shale; common conchoidal fracture; trace birdeye fracture; trace cleat. Sand/Sandstone (7860' - 8100') = light to medium gray to light gray brown; soft to slightly finn; generally angular to subangular and subspheroidal; fine to medium to very fine and coarse grain; predominantly translucent whitè, smoky and clear quartz/volcanics; coarse sand tends to be white to milky quartz; trace to common black to dark gray black subrounded IithirJmineral grains; trace fine coal inclusions; trace to abundant ashy supporting matrix; slightly calcareous; trace very pale blue-white fluorescence; no cut. Tuffaceous Siltstone (7950' - 8170') = light gray to occasionally light gray brown; finn to soft; tabular to irregular cuttings; moderately eroded by circulation; well sorted in part, grading to tuffaceous claystone and also to silty sandstone; gritty texture; dull earthy; good cohesiveness, moderately adhesive; slightly hydrophilic; slightly calcareous. Tuffaceous Siltstone (7950' - 8170') = light gray to occasionally light gray brown; finn to soft; tabular to irregular cuttings; moderately eroded by circulation; well sorted in part, grading to tuffaceous claystone and also to silty sandstone; gritty texture; dull earthy; good cohesiveness, moderately adhesive; slightly hydrophilic; slightly calcareous; no fluorescence noted. Sand/sandstone Sand (8170' - 8250') = (light gray to medium light gray to medium gray; 70% disaggregated; very fine lower to fine lower; subangular to subrounded; poorly to moderately sorted; 60% quartz, 40% with common pyrite, mica and chert, light to medium light green and light red specs; consolidated grains predominantly soft to occasional finn; grains supported by calcareous ashy matrix. TuffNolcanic Ash (8250' - 8300') = yellowish gray to very light gray; very soft to soft; irregular fracture; massive cut tings habit; earthy; smooth to clayey texture; slightly calcareous; common interbedding with siltstone claystone; common contamination with carbonaceous material and coal. Tuffaceous Claystone (8300' - 8350') = yellowish gray to light olive gray; soft to finn; irregular fracture; massive cuttings habit with occasionally visible bit abrasions; earthy to dull; common grading to siltstone and interbedding with volcanic ashltuff; clayey to silty texture; slightly calcareous. Coal (8350' - 8400') = dusky brown to brownish black to black; finn to hard, occasionally very hard; dense to brittle; blocky to conchoidal fracture; massive to scaly elongated cuttings habit; greasy to waxy ; common grading to lignite and very calcareous carbonaceous material; common thin laminations; medium outgassing; trace of enclosed and loose amber. Tuffaceous Siltstone (8400' - 8500') = light to medium gray to gray brown; soft to trace moderately finn; moderately well sorted; sandy; clayey in part; contains a varying amount of very fine to fine grain sand, grading to both sandstone and claystone; trace thin coaly interbeds; trace microthin coaly laminations and inclusions; very slightly calcareous; sandy zones tend to be very ashy. [~ EPOCH 12 (14) MARATHON OIL COMPANY SUSAN DIONNE #2 Sandstone (8470' - 8600') = light to very light to medium gray; soft to very soft; subangular to angular to subrounded; fine to very fine and occasionally medium grain; clear to milky to smoky quartz/volcanic grains; trace fine mica flakes; trace to abundant black to very dark gray black mineraVvolcanic grains; trace fine coal inclusions; common to abundant very light gray to gray white to yellowish gray ash supporting matrix; matrix material is partially devitrified, slightly to moderately hydrophilic; individual cuttings are moderately eroded by circulation; occasional trace visible porosity; slightly calcareous. Tuffaceous Siltstone (8500' - 8700') = light to medium gray to gray brown; soft to trace moderately finn; moderately well sorted; sandy; clayey in part; contains a varying amount of very fine to fine grain sand, grading to both sandstone and claystone; trace thin coaly intert:>eds; trace microthin coaly laminations and inclusions; very slightly calcareous. Coal (8500' - 8700') = black to dark gray black; grading to dark brownish black and dusky brown silty cart:>onaceous material and cart:>onaceous shale; hard to very finn; brittle; hackly in part; dull earthy on bedding planes and partings; resinous to metallic on fracture surfaces; common conchoidal fracture in massive cuttings; silty/shaly material tends to be dulVearthy, fissile to tabular; trace visible outgassing improves with warming; trace resinite/poor amber; trace dull yellow-brown amber. Sandstone (8600' - 8800') = light to very light to medium gray; soft to very soft; subangular to angular to subrounded; fine to very fine and occasionally medium grain; clear to milky to smoky quartzlvolcanic grains; trace fine mica flakes; trace to abundant black to very dark gray black mineraVvolcanic grains; trace fine coal inclusions; common to abundant very light gray to gray white to yellowish gray ash supporting matrix; matrix material is partially devitrified, slightly to moderately hydrophilic; individual cuttings are moderately eroded by circulation; occasional trace visible porosity; slightly calcareous. TuffNolcanic Ash (8700' - 8800') = very light gray white to light yellowish gray soft; gritty to clayey; dull earthy ; hydrophilic in. part; serves as supporting matrix in associated sands; occurs as intert:>edded with thinly layered siltstone and claystone; slightly calcareous; trace mica flakes; trace cart:>onaceous material. Sandstone (8840' - 8900') = light gray white to light gray; soft; poorly consolidated; moderately sorted; fine to very fine grain subangular to subrounded to angular grains; individual grains are predominantly clear to translucent white quarts and volcanics; trace black and very dark gray-black mineralllithic grains; trace phlogopite series mica flakes; abundant light gray-white matrix; matrix material is partially devitrified, slightly to moderately hydrophilic; individual cuttings are moderately eroded by circulation; occasional trace visible porosity; slightly calcareous. Tuffaceous Siltstone (8900' - 9000') = light to medium gray to gray brown; soft to trace moderately firm; moderately well sorted; sandy; clayey in part; contains a varying amount of very fine to fine grain sand, grading to both sandstone and claystone; trace thin coaly interbeds; trace microthin coaly laminations and inclusions; very slightly calcareous. TuffNolcanic Ash (9000' - 9050') = very light gray to light yellowish gray; very soft; gritty to clayey; dull earthy; hydrophilic in part; serves as supporting matrix in associated sands; occurs as interbedded with thinly layered siltstone and claystone; slightly to medium calcareous; trace to common carbonaceous inclusions; trace mica, chert and pyrite. Sandstone/Conglomerate Sand (9050'- 9100') = very light gray to light gray; predominantly soft, occasionally finn; very fine upper to medium upper, occasionally coarse lower; finer fraction subangular to subrounded. coarser angular to subangular; moderate to poorly sorted; finer fraction 70% quartz, 30 % , including common chert, mica and light to dark green glauconite; coarser grains 90-100% quartz; grains predominantly supported by tuffaceous matrix medium to very calcareous. SiltstonefTuffaceous Siltstone (9100'- 9200') = medium gray to gray brown; soft to moderately firm; grading to very fine sand in part; common intert:>edding with claystone/cart:>onaceous shale; trace thin coallcart:>onaceous material laminations and inclusions; slightly to moderately calcareous. [~ EPOCH 13 (.M.) MARATHON OIL COMPANY SUSAN DIONNE #2 Tuffaceous Claystone (9200' - 9300') = light gray brown to light gray and brown soft to moderately firm; blocky to tabular cuttings eroded by circulation; brown material is somewhat fissile; hydrophilic; expansive when wet; moderately cohesive/adhesive; trace brown non tuffaceous claystone; very slightly calcareous. TuffNolcanic Ash (9280' - 9340') = very light gray to light yellowish gray; very soft; gritty to clayey; dull earthy ; hydrophilic in part; serves as supporting matrix in associated sands; occurs as interbedded with thinly layered siltstone and claystone; slightly to moderately calcareous; trace to abundant sand, grades to sandstone; trace carbonaceous inclusions; trace mica, chert and pyrite. Sand/Sandstone ( 9280' - 9450') = light gray white to light gray brown and brown; soft to disaggregated; very friable; moderately well sorted; fine to very fine to trace medium; subrounded to angular; ashy/silty supporting matrix; matrix is light to very light gray-white to occasionally mottled gray and yellowish gray, hydrophilic, poor adhesiveness and cohesiveness; individual grains are primarily clear to milky and smoky quartzlvolcanics; trace dark to medium gray lithic grains; trace black subspheroidal mineraVvolcanic grains; trace possible phlogopite mica, coal fine inclusions and pyrite; slightly calcareous. Tuffaceous Siltstone (9300' - 9500') = light to medium gray to gray brown; soft to trace moderately firm; poorly to moderately well sorted; sandy; clayey in part; grades to ashy sandstone and silty claystone; trace to common thin coaly interbeds; common microthin coaly laminations and inclusions; trace light to medium gray non tuffaceous silt stone; slightly calcareous. TuffNolcanic Ash (9450' - 9535') = very light gray to light yellowish gray; trace to common fluffy white ash; very soft; hydrophilic and easily washed away in water; expansive when wet; moderately cohesive/adhesive; sandy to very sandy; trace carbonaceous inclusions; trace mica, chert and pyrite. Coal (9535' - 9580') = dark brown to black; firm to hard, occasionally very hard; dense to brittle; blocky to conchoidal fracture; flaky habit; greasy to waxy; lignite; medium to strong outgassing. Tuffaceous Claystone/Claystone (9580' - 9660') light gray brown to dark yellowish brown; soft to moderately firm; irregular fracture; massive cuttings habit with occasionally signs of bit cut and circulation; smooth to silty texture; trace to common carbonaceous material/coal; common interbedding with siltstone and tuff/ash; slightly to moderately calcareous. Sand/Sandstone Sand (9660' - 9730') = light gray to yellowish gray; disaggregated; very fine lower to lower medium; subangular to subrounded, coarser grains angular to subangular; moderately to poor1y sorted; finer fraction quartz and glass; coarser fraction 80-100% quartz with occasional chert and mica; occasionally supported by very calcareous ashylclayey material. Coal (9730' - 9770') = dark brown to black; firm to hard; bituminous to sub-bituminous type; conchoidal fracture; waxy to vitreous; strong outgassing; common micro-thin laminations of calcareous material. Tuffaceous Claystone/Claystone (9770' - 9820') = light gray brown to dark yellowish brown; soft to moderately firm; amorphous fracture; massive cuttings habit; smooth to silty texture; common grading to siltstone; common to abundant coal/carbonaceous material; moderately to strongly calcareous. AshlTuff (9900' - 9980') = very light gray-white to white; very soft; fluffy in part; mottled appearance due to mineral inclusions; trace mica flakes and pyrite; slightly to very sandy; grades to ashy sandstone; very slightly calcareous; dull blue-white mineral fluorescence. Sand/Sandstone (9980' to 9150') = light to very light gray to gray white; soft to firm; friable in part; moderately well sorted; fine upper to very fine upper grains; subangular to subrounded and subspherical; clear to white to translucent milky/smoky; quartz and glass; trace dark gray to black subspheroidal mineral/volcanic grains; good trace to common light to medium gray, medium to fine lithic fragments; silty to very ashy in part; common supporting matrix is a very light gray white top white ashltuff; trace very calcareous non ashy salt & pepper sandstone; grades to ashltuff; slightly to medium calcareous overall. [~ EPOCH 14 (.IJA) MARATHON OIL COMPANY SUSAN DIONNE #2 Tuffaceous Claystone/claystone (9950' - 1040') = light to medium gray to medium gray brown; soft to firm; blocky to tabular cuttings habit; gray brown portion is slightly fissile; dull earthy; clayey to silty texture; hydrophilic in part; good to poor adhesiveness; moderately good cohesiveness; trace to common thin coaly interbeds; very slightly calcareous. Sand/Sandstone (10000' -10200') = very light gray white to very lighter gray; soft to slightly firm; friable in part; moderately well to locally well sorted; fine upper to very fine upper and occasionally medium grained; subangular to subrounded to spherical and angular grains; individual grains are predominantly white to translucent smoky quartz/volcanics, clear quartz! volcanics; trace to common euhedral black mafic minerals (augite) trace dark gray-black minerallvolcanic fragments; trace pale rose, glauconite and orange brown chert pebble fragments; trace very fine grain white silica cemented quartz sandstone fragments in the coarse to small pebble range; the whole supported in a very light gray white to white ashltuff matrix; silty in part; grades to sandy ashltuff; slightly to moderately calcareous. Coal (10140'-10155') = black to brown black; firm to hard, occasionally very hard; bituminous to sub- bituminous type; predominantly conchoidal fracture; waxy to vitreous; hackly in part. Tuffaceous Siltstone/Siltstone (10155'-10240') = yellowish gray to grayish orange; very soft to soft, occasionally moderately firm; common grading to claystone and very fine sand; common interbedding with ashltuff; common thin inclusions of carbonaceous material slight to moderately calcareous. Tuffaceous Claystone/Claystone (1 Of 55' -10290') = light gray brown to yellowish brown; 50ft to moderately finn; irregular fracture; massive cuttings habit; smooth to clayey texture; trace to common carbonaceous material/coal; common interbedding with calcareous tuff/ash; medium to very calcareous. Sand/Sandstone ( 10290' - 10370') = very light gray to bluish white; predominantly soft, occasionally firm; very fine upper to medium upper, occasionally coarse lower; finer fraction subangular to subrounded, coarser angular to subangular; moderate to poorly sorted; low to medium sphericity; predominantly white, translucent to smoky quartz, common chert and light red grains; supported by ashylclayey matrix; medium to very calcareous; estimate fair to good porosity; no fluorescence. Coal(10370' -10410') = dusky brown to black; finn to hard, occasionally very hard; bituminous to sub- bituminous type; predominantly conchoidal fracture; smooth to occasionally gritty texture; massive to blocky cuttings habit; strong to very strong outgassing. AshlTuff (10410' -10460') = very light gray-white to white; very soft to soft in part; amorphous fracture; clayey to silty texture; common fine sand and carbonaceous material inclusions; common grading to tuffaceous claystone; medium to very calcareous. Tuffaceous SiltstonelSiltstone (10140'-10500') = yellowish gray to light brown; very soft to soft, occasionally moderately finn; common grading to claystone and very fine sand; common interbedding with ash/tuff; common thin inclusions of carbonaceous material; slight to moderately calcareous. Tuffaceous Claystone/Claystone (10500' -10550') = light gray brown to yellowish brown; soft to moderately finn; irregular fracture; massive cut tings habit; smooth to clayey texture; trace to common carbonaceous material/coal thin laminations; common grading to tuffaceous siltstone and interbedding with ashltuff; slightly calcareous. Sand/Sandstone/Conglomeratic Sand/Conglomerate (10550' -10620') = very light gray to light olive gray; 70-80% unconsolidated in sample; loose grains vary from upper fine to coarse upper; individual grains very coarse lower to upper; very poor to poor sorting; subangular to subrounded; some white quartz grains well rounded; roundness decrease with size; medium to high sphericity; predominantly quartz with occasional chert and green colored grains; consolidated grains supported by ashy/clayey non calcareous silica based matrix; cemented grains emit weak pale white fluorescence and very faint pale straw cut fluorescence. [~ EPOCH 15 (.IJ!!') MARATHON OIL COMPANY SUSAN DIONNE #2 Coal (10660' -10700') = black to very dark gray black to dusky brown; very hard; bituminous to sub- bituminous; predominantly conchoidal fracture; trace bircleye fracture hackly in part; silty to shaly in part; cuttings vary from massive to fine and tend to be blocky to irregular in habit good level of outgassing when fresh; weak outgassing after 5 minutes. SandlConglomeritic Sand (10640'-10760') = very light gray to gray white; soft to disaggregated; coherent cuttings are rare; fine upper to fine lower and medium lower grains; subangular to subspherical to subrounded clear to smoky quartz/volcanics; trace subspherical intact micro-bombs; trace black to very dark gray-black mineralllithic grains; trace orange-brown chert grains; trace pale rose lithic grains; trace to good trace very light gray-white ashy supporting matrix; slightly to very slightly calcareous; trace very dull yellow to greenish yellow fluorescence, no cut. Tuffaceous Siltstone/Siltstone (10760'-10830') = yellowish gray to light brown; very soft to soft, occasionally moderately firm; silty to gritty texture; common grading to claystone and very fine sand; common to abundant interbeddings with ashltuff; common thin inclusions of carbonaceous material slightly calcareous. Tuffaceous Claystone/Claystone (10830' -10880') = light gray brown to pale brown; very soft to soft; amorphous fracture; massive cuttings habit smooth to clayey texture; common grading to siltstone and interbedding with tuff/ash; common contamination with carbonaceous material and coal. Tuffaceous Claystone/Claystone (10830' -10880') = light gray brown to pale brown; very soft to soft; amorphous fracture; massive cuttings habit smooth to clayey texture; common grading to siltstone and interbedding with tuff/ash; common contamination with carbonaceous material and coal. Carbonaceous Shale/Carbonaceous Material (10880' -10940') = light brown to dusky brown; soft to moderately firm; blocky to platy fracture; massive to irregular cuttings habit; silty to gritty texture; dull to earthy luster; common interbedding with thin laminations of lignitic coal; common interbedding with claystone and siltstone. SandlSandstone/Conglomeratic Sand/Conglomerate (10940' -11030') = very light gray to yellowish gray; mostly unconsolidated in sample; loose grains vary from upper fine to medium upper; poor to moderate sorting; subangular to subrounded; some white to translucent quartz grains are well rounded, some very angular; predominantly high sphericity; in sample 70-80% quartz, remaining liths include common basalt type very hard black grains, occasionally grayish red to very dark red chert grains and light olive to pale bluish green glauconite alike mineral; consolidated grains supported by predominantly silica supported matrix; estimate poor intergranular porosity. Coal( 11030' - 11095') = grayish brown to black; lignite to bituminous; moderately firm to very hard; blocky to conchoidal fracture; abrasive to smooth texture; earthy to vitreous luster; lignitic type trace thin limonite laminations; medium to strong outgassing. 3.2. SAMPLING PROGRAM AND DISTRIBUTION Susan Dionne #2 Set Type and Purpose Interval Frequency 20' and 10' based on ROP Distribution Attn: David Brimberry Marathon Oil Company 3201 C Street, Suite 800 Anchorage, AK 99501 A,B, C Washed and Dried 1927' -11094' [:I EPOCH 16 (.M) MARATHON OIL COMPANY SUSAN DIONNE #2 4. DRILLING DATA 4.1. DAILY ACTIVITY SUMMARY 7/28/2004: Epoch crew rigged up and online @ 23:30hrs 07/28/04 712912004: RlU Geronimo line, monkey boards, electrical, gelolgraph cable. Stage out bottom hole assembly. Kill line to well head. SelVice top drive. PIU & MIU bit, motor, stabilizer & HWDP. Clean out conductor from 30' to 119'. Drilling from 119' to 155'. Circulate hole clean. Pull out of hole for bottom hole assembly. P/U MWD & orientate. P/U 2 jts flex collars. Trouble shoot #2 charge pump. Pre job safety meeting. Fix wire on #2 Dennison. Adjust #1 pump. Run in hole. Drilling from 155' to 617'. 7/30/2004: Drill from 619' to 860'. CIRCULATE BOTTOMS UP. Pull 1 stand. CIO saver sub. Drill from 860' to 1051'. Circulate hole clean. Check for flow, (OK). Pull out of hole to shoe for wiper trip. SelVice rig & CIO grabber dies. Run in hole (no fill). Drill from 1051' to 1268'. Pre job safety meeting. Drill from 1268' to 1845'. 7/31/2004: Drill from 1845' to 1927'. Pump hi-vis sweep & circulate bottoms up. Check for flow (OK). Pull out of hole to shoe for wiper trip. SelVice rig. Run in hole (SLM) (strap difference 0.07'). circulate bottoms up X2. Check for flow (OK). Pull out of hole. UD flex collars, HOS, MWD, Por1y collar, stabilizer, motor & bit. CIO bales & elevators. Pre job safety meeting. RIU Weatherford slips & elevators. P/U & M/U shoe tracks. RlU Swedge & pump throw floats. RID swedge & cement hose. Run in hole W 9 5/8" CSG. Tagged at 1927'. RID Weatherford. RlU CMT hose & circ. Pre job safety meeting. Pump 5bbls water. Test lines to 3500psi. Pump 40bbls 8.4ppg spacer, 420 sx type 1 W/18% LW-6, 20% MPA-1, 1% SMS, 0.3% CD-32, Ighs FP-66 to yield 187bbls 12.0ppg sluny (113bbls water). Drop plug W/5bbls water. Displace W 130 bbls mud. Bump plug W 1000psi. CIP 12:40. Bleed, check floats OK. RID BJ. Flush stack & lines. Drain stack. Close annular. 8/01/2004: WOC, RID cement head. C/O bailes & elevators. RlU rig tongs. Change oil & filters #1 &2 Carrie motors. Clean pits. Work on #1 Dennison pump. NID diverter line, knife valve tumbuckles & fill up lines. Cut 9 5/8" CSG. N/D pitcher nipple. Pull diverter stack & load out. Remove starting head & make final cut on 20". Pre job safety meeting. Set BOP stack rack. Make final cut on 95/8" & dress it. Mix mud. Install Multibowl hanger & test to 1000psi. Install OSA, spacer spool. N/U single gate. Set stack & N/U choke & kill lines, fill up & trip tank lines. Install riser flow line turnbuckles. Function test BOPs. RlU to test BOPs. 8/0212004: Test BOPEs. Upper Kellycock, annular, check valve, & #10, 11, 12 choke valves & dart valve 250psi low (5min)/2500psi (5min). Test lower Kellycock, top pipe ram, outside kill & #6,8,9, choke valves, lower PR, inside kill & #1,2,5,7 CMVs. Test HCR, ann choke, floor valves, blind rams & # 3,4 CMVs, accum draw dn test. Install wear bushing. Rig up & test CSG to 2500psi/30min. P/U DP, TRQ, stand back & SLM. M/U bottom hole assembly #2. Test MWD. run in hole, tag CMT @ 1840'. Drilling cement 1840' - 1927'. Drilling 1927' -1947'. RT % hr, circulate bottoms up. Mix spacer & displace W Flo-Pro mud. L.O.T, 20.4ppg EMW. 8/03/2004: Drilling from 2165' - 3045'. Drilling from 3045' - 3251'. Circulate bottoms up. Pull out of hole to shoe. Slip drilling line. SelVice rig. Run in hole no fill. Drilling from 3313' - 3562'. 8/0412004: Drill from 3562' to 4558'. CBU. POOH to 3129'. SelVice rig & change out grabber box. RIH, no fill. Drill from 4558' to 4930'. 8/05/2004: Drill from 4930' to 5633'. Drill from 5633' to 5962', CBU + Pump Pill, POOH. 8/06/2004: Wipe hole to shoe @ 1927'. Lubricate rig, top drive, crown & block carrier change line & swab out #3 mud pump. RIH to 4700', fill pipe. RIH to 5962'. Circulate & condition mud. POOH (SLM) for casing. Rabbit with wire in DP. POOH (SLM) no correction. UD jars, DCs & MTR. PJSM. Logging on [~ EPOCH 17 (!J4) MARATHON OIL COMPANY SUSAN DIONNE #2 DP. MIU logging tool inside of 3 % DP. RIH W 5"HWDP. Circulate to check flows & psi 2bpm = 180psi, 4bpm = 450psi. RIH W DP to CSG shoe (1927'). Circulate @ 4bpm = 620psi. RIH to 5952, fill pipe @ 3971'. Circulate & condition mud 5.5bpm @1050psi. Std BK 1 std, drop messenger. Pump messenger down DP to latch tool. 8/07/2004: PJSM W/Reeves. Pump dry job. Pull out of hole. Logging 30 ftImin on drill pipe. UD 3 1/2" drill pipe & logging tools. RIH W 5" HWDP & UD same. Pull wear bushing. Run & tag hanger on load shoulder. Change top set of rams to 7". Test 7" rams, door seals 250/2500psi. CIO bales. M/U Laafier fillup tool. CIO tongs & snub post, adjust torque tube. RIU stab in board & Weatherford. P/U & M</U shoe tract. PJSM. Circulation shoe tract (check floats). Continue RIH W 7" CSG as per program. 8/08/2004: Run & land 7" CSG per program W PJSM. Land @ 5942.18', FC @ 5860'. RIU BJ CMT head & circ@100 spm =680psi. CMT job - 7" per prog. Tail WI2% KCL, 6% FL-63, .5% EC-1, 1% ASA- 301, 3% CD-32, 2% R-3, 1 ghS FP-6L to yield 34bbls 15.8 slurry (19.2bbls mix water) top plug kick 5bbls H20 BJ CIP @ 0535. Bump plug 0535 - 4760 strokes. Install 7" packoff & test to 3000psi for 15 min. CIO top rams to 2 7/8X5" Var. UD long bales. PIU test jt & set test plug. M/U test tools. Load out CSG tools & CSG. Load D.P on rack. Clean out trip tank. Change liners in mud pumps. Vac out mud pits. Test BOPs = dart, floor, check, kill & choke valves, 1 through 12, annular to 250/2500psi, C/O upper & lower Kellycock. Test BOP = upper, lower & blind rams, inside choke & kill, CMU, 2,3,4,5 & 7, upper & lower Kellycock 250 - 2500psi, accumulator perfonnance test, pun test plug & install wear bushing. Clean pits. CIO #3 pump liners to 4". Remove top drive extender to weld crack. CIO continental control valve on top drive. Test gas alanns. RIU bales & elevators. CIO oil cooler #1 pump motor, R/U to P/U D.P., pump through pop offs all three mud pumps. Mix mud. P/U & MIU stands 4" D.P. 8/09/2004; P/U 4" DP RIH & stand it back. Test 7" CSG to 2500psi for 30 min. P/U & MIU Baker BHA. Test MWD. P/U & RIH W 3 1/2" HWDP & jars. SLM & RIH W 4" DP. Tag float collar @ 5860'. Drill float collar & shoe tract from 5860' to 5942'. Clean out old hole from 5942' to 5962'. Drill new hole from 5962' to 5982'. CBU. Mix & pump 25bbls spacer, followed W FlowVis. LOT 1765psi, 18.8ppg (MWEq) 8/10/2004: Drill from 6002' to 6159'. Drill from 6159' to 6363' 8/11/2004: Drill from 6363' to 6533'. Circulate bottoms up. POOH to shoe @ 5900'. Service. RIH, no fill. Drilling from 6583' to 6719'. 8/12/2004: Drill from 6719' to 6918'. Drill from 6918' to 7216'. 8/13/2004: Drill from 7216' to 7344'. Repair mudline union seal. Drill from 7344' to 7465'. CBU. POOH to 7275'. BOP test Wltripping. Repair hydro hose. Wipe hole 15 stds to 6535'. Service & clean rig. RIH (no fill). Drill from 7465' to 7967'. 8/14/2004: Drill from 7967' to 8217'. Drill from 8217' to 8527'. 8/15/2004: Drilling from 8527' to 8960'. Drill from 8960' to 9257'. 8/16/2004: Drill from 9257' to 9585'. PJSM. CBU X2. Check for flow. Pump slug. POOH. UD motor. Pull wear bushing. Set test plug. Test upper, lower and blind rams, upper & lower Kelleycock, dart and safety valves, check valve, inside & outside kill valves, inside choke, HCR, CMV 1 thru 12 to 250/2500psi. Accumulator perfonnance test. Pull test plug. Install wear bushing. P/U new mud motor & re-set AKO. Orientate MWD. RIH with BHA. 8/17/2004:. PJSM. RIH W 4" DP to shoe. Slip & cut drill line. Cut 180', slip 146'. Adjust CUM & check. RIH to 9595' (no fill). MWD computer down, repair same. Drill from 9585' to 9605'. Drill from 9605' to 10000' 8/18/2004: Drilling from 10000' to 10360'. Drilling from 10360' to 10657'. POOH for hole in pipe. [~ EPOCH 18 (.M) MARATHON OIL COMPANY SUSAN DIONNE #2 8/19/2004: PJSM. POOH for wash out. Hole at top of stand 73. Replace bad jt & test MWD. Service rig & top drive. RIH. Check pressure every 10 stands, (no fill). Drill from 10653' to 10890'. Drill from 10890' to 11094' (TD). Circ hole clean. Check for flow. Pump dry job. POOH (wiper trip to shoe). 8/20/2004: PJSM. POOH to shoe. RIH to 11094'. Circulate hole clean. Check for flow. Pump dry job. POOH (SLM). POOH W/4" DP (SLM» UD HWDP, jars, Non Magnetics, MWD, motor & bit. Clean rig floor. PJSM WlReeves Logging Co. P/U & MIU BHA & load logging tools. Circulate @ 245'1 170spm, 280 psi & 140 spm, 600psi. RIH W 4" DP. CBU 190 spm/2000psi. 8/21/2004: PJSM. POOH to 10978', pump messenger @ 107 SPM/3200 strokes, 70 spm to deploy logging tools @ 1500psi. Pump dry job. POOH logging W Reeves from 11083' to 3274'. POOH. UD logging tools. P/U BHA. RIH to shoe. CBU. PJSM. Slip 34' drilling line. Reset & check COM. Service carrier, crown, blocks and top drive. Condition mud. Cut mud weight from 10ppg to 9.6ppg. RIH from 5920' to 11094', (no fill). Circulate & condition mud @ 285 spm/2300 psi. [~ EPOCH 19 (.@) MARATHON OIL COMPANY SUSAN DIONNE #2 4.2. SURVEY RECORD Measured Vertical Rectangular Rectangular Closure Depth Inclination Azimuth TVD Section Coordinate Coordinate Closure Azimuth DLS (+) N/S (-) (+) EIW (-) (ft) ( deg ) ( deg ) (ft) (ft) (ft) (ft) (ft) ( deg ) ( deg/1 00 ft ) 132 0.4 23.9 132.00 0.23 0.42 0.19 0.46 23.90 0.30 192 0.6 10.8 192.00 0.56 0.92 0.33 0.98 19.73 0.38 252 3.3 346.5 251.96 2.38 2.91 -0.01 2.91 359.73 4.61 312 6.2 345.9 311.74 6.99 7.73 -1.21 7.83 351.13 4.83 373 7.7 346.2 372.29 13.86 14.90 -2.98 15.19 348.67 2.46 433 8.7 347.4 431.68 21.77 23.23 -4.93 23.75 348.01 1.69 493 12.0 345.6 490.70 31.77 33.70 -7.47 34.52 347.49 5.53 553 14.6 340.3 549.08 44.58 46.86 -11.58 48.27 346.13 4.78 614 15.8 337.3 607.95 60.36 61.76 -17.37 64.16 344.29 2.35 674 18.0 336.0 665.36 77.41 77.77 -24.30 81.48 342.65 3.72 733 21.4 335.1 720.89 96.92 95.87 -32.54 101.24 341.25 5.79 794 24.6 332.6 777.04 120.44 117.24 -43.07 124.90 339.83 5.48 860 28.1 330.7 836.17 149.49 143.00 -57.00 153.94 338.27 5.45 922 31.1 330.1 890.08 179.95 169.62 -72.13 184.32 336.96 4.86 985 33.2 329.7 943.41 213.32 198.62 -88.95 217.63 335.88 3.35 1048 33.7 329.6 995.98 247.91 228.59 -106.50 252.18 335.02 0.80 1111 34.8 329.4 1048.05 283.23 259.14 -124.49 287.49 334.34 1.76 1172 36.8 329.2 1097.52 318.78 289.82 -142.71 323.05 333.78 3.28 1235 38.7 329.5 1147.34 357.21 323.00 -162.37 361.51 333.31 3.03 1297 40.7 328.9 1195.04 396.67 357.01 -182.65 401.02 332.91 3.28 1359 42.3 328.9 1241.47 437.63 392.19 -203.87 442.01 332.53 2.58 1421 45.3 329.5 1286.21 480.39 429.05 -225.84 484.85 332.24 4.88 1484 47.8 330.0 1329.54 525.93 468.55 -248.87 530.55 332.03 4.01 1547 49.7 330.4 1371.07 573.05 509.66 -272.41 577.89 331.88 3.05 1609 52.2 330.4 1410.13 620.94 551.52 -296.19 626.02 331.76 4.03 1673 54.9 330.6 1448.15 672.13 596.32 -321.53 677.48 331.67 4.23 [=I EPOCH 20 (M') MARATHON OIL COMPANY SUSAN DIONNE #2 Measured Vertical Rectangular Rectangular Closure Depth Inclination Azimuth TVD Section Coordinate Coordinate Closure Azimuth DLS (+) N/S (-) (+) E/W (-) (ft) ( deg ) ( deg ) (ft) (ft) (ft) (ft) (ft) ( deg ) ( deg/1 00 ft ) 1735 57.4 331.1 1482.68 723.30 641.29 -346.61 728.96 331.61 4.09 1797 60.1 330.7 1514.84 775.96 687.60 -372.39 781.96 331.56 4.39 1859 62.9 331.3 1544.43 830.09 735.25 -398.80 836.44 331.52 4.60 1955 62.2 331.7 1588.69 914.63 810.11 -439.44 0.82 2078 62.8 330.7 1701.68 1022.98 905.71 -492.00 0.87 2202 63.3 330.2 1701.68 1132.90 1001.87 -546.52 0.54 2326 63.2 330.8 1757.50 1243.02 1098.24 -601.04 0.44 2453 64.1 330.5 1813.87 1356.16 1197.44 -656.82 0.74 2578 62.8 330.4 1869.74 1467.36 1294.71 -711.97 1.04 2703 64.6 330.6 1925.11 2578.80 1392.24 -767.15 1.45 2827 63.7 329.8 1979.18 1689.83 1489.08 -822.60 0.93 2952 64.8 329.8 2033.48 1801.93 1586.38 -879.24 0.88 3077 64.3 329.3 2087.20 1914.35 1683.68 -936.44 0.54 3200 64.5 329.5 2140.34 2024.87 1779.16 -992.90 0.22 3325 67.1 329.4 2191.58 2138.44 1877.34 -1050.85 2.08 3387 66.8 329.1 2215.85 2195.29 1926.37 -1080.02 0.66 3511 66.3 330.1 2265.20 2308.59 2024.49 -1137.58 0.84 3636 65.9 329.2 2315.84 2422.40 2123.10 -1195.33 0.73 3760 65.2 329.5 2367.17 2534.87 2220.21 -1252.87 0.61 3885 64.2 329.2 2420.59 2647.47 2317.44 -1310.48 0.83 4010 63.7 330.3 2475.48 2759.29 2414.44 -1367.06 0.89 4134 62.9 330.4 2531.20 2869.48 2510.71 -1421.86 0.65 4258 62.2 331.1 2588.36 2978.85 2606.72 -1475.63 0.75 4384 61.4 331.2 2647.90 3089.16 2703.98 -1529.21 0.64 4508 61.3 331.8 2707.35 3197.15 2799.61 -1581.14 0.43 4633 61.8 331.2 2764.97 3307.24 2897.09 -1634.07 2.04 4757 61.6 331.9 2819.91 3417.55 2994.82 -1687.03 0.53 4883 63.8 331.8 2875.74 3529.57 3094.42 -1740.32 0.17 5005 63.2 332.3 2930.17 3637.80 3190.87 -1791.49 0.61 5128 63.1 332.6 2985.73 3746.47 3288.16 -1842.25 0.23 5252 63.3 332.4 3042.60 3855.57 3385.90 -1983.13 0.66 [=I EPOCH 21 (.M) MARATHON OIL COMPANY SUSAN DIONNE #2 Measured Vertical Rectangular Rectangular Closure Depth Inclination Azimuth TVD Section Coordinate Coordinate Closure Azimuth DLS (+) N/S (-) (+) EIW (-) (ft) ( deg ) ( deg ) (ft) (ft) (ft) (ft) (ft) ( deg ) ( deg/1 00 ft ) 5313 62.4 331.8 3071.38 3908.88 3433.43 -1918.29 1.71 5374 61.9 331.2 3100.81 3961.91 3480.39 -1943.79 1.19 5437 60.4 331.6 3131.69 4016.42 3528.60 -1970.07 0.97 5561 58.5 329.3 3194.20 4122.82 3622.00 -2022.42 3.38 5623 57.3 329.1 3227.15 4175.19 3667.12 -2049.31 1.95 5685 55.2 328.6 3261.59 4226.59 3711.23 -2075.98 3.45 5747 53.6 328.5 3297.68 4276.87 3754.24 -2102.28 2.58 5810 51.7 327.7 3335.90 4326.85 3796.76 -2128.74 3.18 5872 50.4 327.4 3374.88 4375.00 3838.46 -2154.61 2.13 5912 50.0 326.6 3400.48 4405.70 3863.22 -2171.34 1.83 5966 48.7 326.5 3435.66 4446.64 3897.40 -2193.93 2.41 6029 47.0 326.6 3477.94 449.31 3936.37 -2219.67 2.70 6091 45.7 326.9 3520.73 4538.14 3973.89 -2244.27 2.13 6154 42.7 325.1 3565.89 4582.03 4010.30 -2268.81 5.15 6216 41.9 323.3 3611.75 4623.76 4044.15 -2293.21 2.34 6278 40.7 321.1 3658.33 4664.64 4076.48 -2318.28 3.04 6240 39.6 320.0 3705.72 4704.52 4107.35 -2343.68 2.11 6402 37.4 318.5 3754.24 4742.95 4136.59 -2368.86 3.85 6464 36.1 317.5 3803.92 4779.81 4164.16 -2393.68 2.31 6526 34.9 316.6 3854.39 4815.51 4190.52 -2418.20 2.11 6589 33.7 314.3 3906.44 4850.57 4215.82 -2443.10 2.80 6651 32.2 312.3 3958.47 4883.66 4238.95 -2467.63 2.99 6713 30.2 310.5 4011.50 4914.94 4260.20 -2491.71 3.56 6775 28.8 309.3 4065.46 4944.49 4279.79 -2515.12 2.45 6837 27.1 309.3 4120.22 4972.54 4298.19 -2537.61 2.74 6899 27.2 309.8 4175.39 4999.88 4316.12 -2559.42 0.40 6961 25.3 308.6 4231.00 6026.33 4333.55 -2580.67 3.18 7024 25.6 307.4 4287.88 5052.29 4350.21 -2602.00 0.95 7086 26.1 306.8 4343.68 5078.09 4366.52 -2623.56 0.91 [=I EPOCH 22 (M) MARATHON OIL COMPANY SUSAN DIONNE #2 5499 60.0 331.0 3162.50 4069.84 3575.79 -1995.91 1.06 Measured Vertical Rectangular Rectangular Closure Depth Inclination Azimuth 1VD Section Coordinate Coordinate Closure Azimuth DLS (+) N/S (-) (+) EIW (-) (ft) ( deg ) ( deg ) (ft) (ft) (ft) (ft) (ft) ( deg ) ( deg/100 ft ) 7147 26.2 307.2 4398.44 5103.74 4382.70 -2645.03 0.33 7210 24.3 310.6 4455.42 5129.61 4399.54 -2665.95 3.79 7272 25.1 309.3 4511.74 5154.69 4416.17 -2685.82 1.56 7397 23.3 310.3 4625.3 5205.16 4449.42 -2726.10 3.14 7459 23.7 309.3 4682.16 5229.08 4465.25 -2745.10 0.91 7522 24.1 308.8 4739.75 5253.68 4481.33 -2764.92 0.71 7585 24.4 307.7 4797.20 5278.53 4497.34 -2785.24 0.86 7648 24.6 307.1 4854.52 5303.50 4513.21 -2805.99 0.51 7709 25.0 306.3 4909.90 5327.87 4528.50 -2826.51 0.86 7772 25.6 305.3 4966.85 5353.37 4544.25 -2848.35 1.17 7834 25.8 305.7 5022.72 5378.80 4559.86 -2870.24 0.43 7896 27.7 304.6 5078.57 5404.22 4575.37 -2892.26 0.79 7958 25.8 303.8 5134.41 5429.49 4590.51 -2914.54 0.58 8022 25.4 303.2 5192.13 5455.31 4605.77 -2937.60 0.74 8084 25.8 302.8 5248.04 5480.24 4620.36 -2960.06 0.70 8147 25.8 302.7 5304.76 5505.72 4635.19 -2983.12 0.07 8211 23.2 306.1 5362.99 5530.62 4650.15 -3005.03 4362 8272 23.2 305.8 5419.06 5553.41 4664.26 -3024.49 0.19 8335 22.7 306.7 5477.08 5576.74 4678.78 -3044.3 0.97 8396 22.0 309.2 5533.49 5598.97 4693.40 -3062.59 1.94 8459 21.6 310.9 5591.99 5621.63 4708.09 -3080.50 1.19 8521 22.0 310.7 5649.56 5644.00 4723.13 -3097.93 0.66 8583 22.5 309.9 5706.94 5666.77 4738.31 -3115.83 0.94 8645 22.3 308.6 5764.26 5689.56 4753.26 -3134.13 0.86 8707 22.4 307.8 5821.60 5712.20 4767.84 -3152.66 0.52 8769 22.9 307.5 5878.82 5735.05 4782.43 -3171.56 0.83 8830 23.3 306.1 5934.93 5757.85 4796.76 -3190.72 1.11 8892 23.5 305.3 5991.83 5781.17 4811.13 -3210.72 0.61 8955 23.2 307.2 6049.67 5804.88 4825.89 -3230.86 1.29 [1 EPOCH 23 (!!A) MARATHON OIL COMPANY SUSAN DIONNE #2 Measured Vertical Rectangular Rectangular Closure Depth Inclination Azimuth TVD Section Coordinate Coordinate Closure Azimuth DLS (+) N/S (-) (+) EIW (-) (ft) ( deg ) ( deg ) (ft) (ft) (ft) (ft) (ft) ( deg ) ( deg/1 00 ft ) 9017 23.4 307.2 6106.62 5828.30 4840.72 -3250.39 0.32 9081 23.3 306.8 6165.37 5852.50 4855.98 -3270.65 0.29 9143 23.7 305.9 6222.23 5876.00 4870.63 -3290.56 0.59 9204 24.0 306.4 6278.03 5899.39 4885.18 -3310.47 0.82 9265 24.7 307.6 6333.61 5923.38 4900.31 -3330.55 1.41 9331 24.8 306.5 6393.54 5949.75 4916.96 -3352.60 0.71 9393 25.2 305.5 6449.74 5974.60 4932.36 -3373.80 0.94 9455 25.8 304.5 6505.69 5999.78 4947.68 -3395.68 1.19 9517 26.0 303.4 6561 .46 6025.14 4962.80 -3418.14 0.84 9578 26.7 303.6 6616.12 6050.44 4977.78 -3440.69 1.18 9639 25.8 307.5 6670.83 6075.97 4993.49 -3462.61 3.06 9701 25.1 310.3 6726.82 6101.62 5010.21 -3483.34 2.24 9763 24.8 311.8 6783.03 6127.06 5027.38 -3503.07 1.13 9827 24.7 311.6 6841.16 6153.19 5045.20 -3523.07 0.20 9889 24.8 310.9 6897.46 6178.46 5062.32 -3542.59 0.50 9951 25.0 310.2 6953.70 6203.80 5079.29 -3562.42 0.57 10013 24.7 309.6 7009.96 6229.02 5096.00 -3582.41 0.63 10076 24.7 309.6 7067.19 6254.46 5112.78 -3602.70 0.00 10138 24.1 311.9 7123.66 6279.34 5129.49 -3622.10 1.81 10200 23.9 311.9 7180.30 6303.95 5146.33 -3640.87 0.33 10262 23.9 310.7 7236.98 6328.41 5162.91 -3659.74 0.78 10324 24.0 311.2 7293.64 6352.88 5179.40 -3678.74 0.36 10387 23.9 310.5 7351.22 6377.74 -5196.13 -3698.09 0.48 10449 23.6 310.8 7407.97 6401.98 5212.40 -3717.03 0.52 10511 23.8 310.1 7464.74 6426.16 5228.56 -3736.00 0.56 10574 22.8 309.4 7522.60 6450.28 5244.51 -3755.16 1.65 10636 22.2 309.5 7579.88 6473.20 5259.58 -3773.48 0.97 10698 21.7 308.8 7937.38 6495.57 5274.21 -3791.46 0.91 10760 21.8 307.6 7694.97 6517.65 5288.42 -3809.51 0.74 [=I EPOCH 24 (M') MARATHON OIL COMPANY SUSAN DIONNE #2 Measured Vertical Rectangular Rectangular Closure Depth Inclination Azimuth TVD Section Coordinate Coordinate Closure Azimuth DLS (+) NIS (-) (+) EIW (-) (ft) ( deg ) ( deg ) (ft) (ft) (ft) (ft) (ft) ( deg ) ( deg/1 00 ft ) 10822 21.7 306.5 7752.56 6539.60 5302.26 -3827.84 0.68 10884 21.3 306.6 7810.24 6561.26 5315.79 -3846.10 0.65 10946 21.0 305.7 7868.07 6582.54 5328.99 -3864.16 0.71 11007 20.20 305.1 7925.17 6602.88 5341 .43 -3881.65 1.36 11 026 20.00 305.2 7943.01 6609.06 5345.18 -3886.99 1.07 [=I EPOCH 25 (.@) MARATHON OIL COMPANY SUSAN DIONNE #2 4.3. MUD RECORD Contractor: MI Drilling Fluids Mud Type: GEU SPUD MUD 100' -1927',6% KCL FLOPRO 1927' -11094' DATE MD / TVD MW VIS PV YP GELS FL FC SOL OlUH20 SD MBT pH Alk CI- Ca' 7/28/04 STATIC 8.6 158 16 48 40/44/50 NA 3 3 0197 0 25 9.6 .5 300 40 7/29104 6181615 8.85 78 16 26 28/35/38 15.2 3 4.5 0/95.5 .75 15 8.5 .2 400 80 7/30/04 1723/1481 9.4 69 16 23 24158/66 7.8 2 8 0/92 .25 15 9.5 .3 400 60 7/31104 1927/1575 9.45 59 13 14 7/33/38 8.2 2 8.5 0/91.5 .25 15 8.5 .1 400 60 8/1/04 1927/1575 9.45 59 13 14 7/33/38 8.2 2 8.5 0/91.5 .25 15 8.5 .1 400 60 8/2/04 1947/1585 9.0 56 10 18 7/9110 8.0 1 4.5 0/95.5 TR 1 9.3 .4 29000 40 8/3/04 2212/1709 9.00 56 10 18 7/9110 8.0 1 4.5 0/95 TRC 1 9.3 .4 29000 40 8/4/04 3623/2310 9.25 55 12 26 12/17/20 8.0 1 7.0 0/93 .15 3 9.8 .35 28000 60 8/5/04 5042/2951 9.4 47 11 22 13/18/22 8.2 1 7.5 0/92.5 .1 4 9.8 .35 30000 80 8/6/04 5962/3433 9.55 50 15 23 15/29/34 7.2 2 8 0/92 .3 9 9.9 .4 29500 60 8/7/04 5962/3433 9.75 46 12 23 13/17/23 7.6 2 9 0/91 .25 10 9.8 .4 30000 80 8/8/04 5962/3433 9.75 46 12 22 12/19/23 8.0 2 9 .1/90.9 .2 11 9.6 .25 29500 60 8/9/04 6036/3479 9.0 55 10 18 7/9/10 6.2 1 4 .7195.3 0 0 9.1 .2 29000 40 8/10/04 6073/3728 9.0 50 12 23 9/12/14 4.8 1 4 5.0191 .1 1 8.9 .15 28000 20 8/11/04 6719/4015 9.2 51 12 23 8/10/12 4.0 1 6.5 5/88.5 .15 2.5 9.8 .6 30000 40 8/12/04 7248/4490 9.15 51 13 24 10/13/14 3.8 1 6 5/89 .15 4 9.6 .6 29500 80 8/13/04 7968/5144 9.25 51 13 24 9/13/25 3.6 1 6 5/89 .15 5 9.7 .6 30500 60 8/14/04 8536/5664 9.2 52 14 27 12/15/17 3.8 1 6 5/89 .15 5 9.4 .4 29000 60 8/15104 9253/6323 9.35 51 12 30 11/15/17 4.4 1 7.5 5/87.5 TRC 7.5 9.6 .4 29000 60 8/16/04 9573/6617 9.4 59 13 33 11/17/18 4.4 1 7 5/88 0.15 8 9.4 0.4 29500 60 8/17/04 9967/6969 9.5 52 12 33 12/15/17 4.4 1 8 5187 0.15 8 9.7 0.55 30500 60 8/18104 10657/7601 9.5 53 12 32 13/16/18 4.0 1 8 5/87 0.2 9 9.9 0.5 29000 60 8/19104 11094/8007 9.7 54 13 32 15120/24 4.2 1 9.5 5.5/85 0.25 11 9.7 0.4 30000 60 8/20/04 11094/8007 9.85 56 14 31 15/22/25 4.4 1 10 5.5/84.5 0.15 12 9.7 0.4 30000 60 8/21/04 11094/8007 9.7 50 13 32 12116/18 4.8 1 9 5/86 0.1 11 9.6 0.4 29500 60 Contractor: MI Drilling Fluids Mud Type: GEU SPUD MUD 100'-1927', 6% KCL FLOPRO 1927' - 11 094 ' [~ EPOCH 26 (M) MARATHON OIL COMPANY SUSAN DIONNE #2 4.4. BIT RECORD BIT SIZE TYPE SIN JETSI IN OUT FEET HRS AVE WOB RPM PP CONDITION NO. TFA ROP 1 12.25 HTC MX-C 1 5055724 3x18, 16 100 1927 1827 20.9 87.4 15-24 1535 1-1-wr -A-E-1-NO- TD 2 8.5 HC HCM605 7104182 5x15'5 1927 5962 4035 38.46 104.9 22-44 2109 0-0-CT-G-X-1-NO-TD 3 4.75 HC-HCM404 7003485 6-115 5962 9585 3623 105 34.5 8/31 2200 NOT AVAILABLE 3RR 4.75 HC-HCM404 7003485 6-115 9585 11 094 1509 38.4 39.29 11/33 ~ 2585 1-1-CT -G-D-1-NO- TD 3cum 4.75 Hc-hcm404 7003485 6-115 5962 11 094 5132 143.4 35.8 &3~ 2450 1-1-CT -G-D-1-NO- TD ~~~ <"". ,''<I ~~¡,V ~i ~,'~ " r .....~ ~~' [~ EPOCH 27 4000' :I: I- 6000' Il. W 0 8000' 10000' MARATHON COMPANY 4.5. DRILLING PROGRESS CHART 0' 2000' 28 MARATHON OIL COMPANY NINILCHIK FIELD SD2 REPORT FOR ROWLAND LAWSON DATE, JULY 28,2004 TIME 24:00 DAILY WELLSITE REPORT U EPOCH DEPTH 100 YESTERDAY 100 PRESENT OPERATION RIGGING DIVERTER string 24 HOUR FOOTAGE 0 SURVEY DATA CASING INFORMATION 20" @ 100' DEPTH AZIMUTH BIT INFORMATION NO. SIZE TYPE NIA DRILLING PARAMETERS RATE OF PENETRATION SURFACE TORQUE WEIGHT ON BIT ROTARY RPM PUMP PRESSURE DRILLING MUD REPORT MW 8.6 VIS 158 FC 3 SOL 3 MWD SUMMARY INTERVAL TO TOOLS GAS SUMMARY (units) DITCH GAS CUTTING GAS METHANE (C-1) ETHANE (C-2) PROPANE (C-3) BUTANE (C-4) PENTANE (C-5) HYDROCARBON SHOWS INTERVAL INCLINATION INTERVAL SIN JETS IN OUT FOOTAGE HOURS HIGH LOW AVERAGE @ @ @ @ @ @ @ @ @ @ PV SD DEPTH 100/100 16 YP 48 o OIL 0/97 FL NL Gels MBL 25 pH HIGH LOW AVERAGE o @ @ @ @ CHROMATOGRAPHY (ppm) @ @ @ @ @ @ @ @ @ @ NIA LlTHOLOGY/REMARKS LITHOLOGY NIA PRESENT LITHOLOGY NIA DAILY ACTIVITY SUMMARY EPOCH RIGGED UP AND ONLINE @ 23:30hRS 07/28/04 EPOCH PERSONNEL ON BOARD 2 DAILY COST 1863 ML 360 RW REPORT BY JOHN LUNDY VERTICAL DEPTH CONDITION TIBIC REASON PULLED CURRENT AVG FTIHR AMPS KLBS RPM PSI 40/44/50 CL- 9.6 Ca+ 300 40 CCI TRIP GAS 0 WIPER GAS SURVEY CONNECTION GAS HIGH AVG CURRENT CURRENT BACKGROUND/AVG 0 GAS DESCRIPTION Marathon Oil Company Ninilchih Field Susan Dionne #2 REPORT FORDave Morris DATE Jul 29. 2004 TIME 24:00 DAILY WELLSITE REPORT DEPTH 660.00 YESTERDAY 101.00 24 HOUR FOOTAGE 559 CASING INFORMATION 20" @ 100' DEPTH SURVEY DATA 860 BIT INFORMATION NO. SIZE TYPE 1 12.25 HTC-MXC1 DRILLING PARAMETERS RATE OF PENETRATION SURFACE TORQUE WEIGHT ON BIT ROTARY RPM PUMP PRESSURE DRILLING MUD REPORT MW 8.85 VIS 78 PV FC 3 SOL 4.4 SO MWD SUMMARY INTERVAL TO TOOLS GAS SUMMARY (units) DITCH GAS CUTTING GAS METHANE (C-1) ETHANE (C-2) PROPANE (C-3) BUTANE (C-4) PENTANE (C-5) HYDROCARBON SHOWS INTERVAL LITHOLOGY NIA PRESENT LITHOLOGY NIA INCLINATION 28.1 AZIMUTH 330.7 SIN 5055724 INTERVAL JETS IN OUT 3-18,1-16 119' STilL IN FOOTAGE 541 U EPOCH PRESENT OPERATION Drilling Ahead VERTICAL DEPTH 836.2 HOURS 6.23 CONDITION TIBIC REASON PULLED HIGH LOW AVERAGE CURRENT AVG 330.8 @ 342.00 14.6 @ 197.00 124.4 31.03448 FT/HR 1074 @ 660.00 -13 @ 259.00 278.2 1074.19385 AMPS 18 @ 247.00 0 @ 115.00 5.0 3.21662 KLBS @ @ RPM 1155 @ 497.00 178 @ 113.00 772.1 872.68817 PSI DEPTH 618/615 16 YP 26 FL 15.2 Gels 28/35/38 CL- 400 0.75 OIL 0/95.5 MBl 15 pH 8.5 Ca+ 80 CCI HIGH LOW AVERAGE 7 @ 591.00 0 @ 558.00 0.7 @ @ CHROMATOGRAPHY (ppm) 1447 @ 591.00 50 @ 558.00 153.9 @ @ @ @ @ @ @ @ LlTHOlOGY/REMARKS TRIP GAS WIPER GAS SURVEY CONNECTION GAS HIGH AVG CURRENT CURRENT BACKGROUND/AVG 8u GAS DESCRIPTION DAILY ACTIVITY SUMMARY RIU geronimo line, monkey boards, electrical, gelolgraph cable. Stage out BHA. Kill line to well head. Service top drive. PIU & M/U bit, motor, stabalizer & HWDP. Clean out conductor from 30' to 119'. Drlg from 119' to 155'. Circulate hole clean. POOH for BHA. PIU MWD & orientate. PIU 2 jts flex collars. Trouble shoot #2 charge pump. PJSM. Fix wire on #2 Dennison. Adjust #1 pump. RIH. Drlg from 155' to 617'. EPOCH PERSONNEL ON BOARD 2 DAILY COST 1863 ML 1360 RW REPORT BY John Lundy Marathon Oil Company Ninilchik Field Susan Dionne #2 REPORT FOR Dave Morris DATE Jul30, 2004 TIME 24:00 DAILY WELLSITE REPORT g EPOCH DEPTH 1864.00 YESTERDAY 660.00 24 HOUR FOOTAGE 1204 PRESENT OPERATION Drilling Ahead CASING INFORMATION 20" @ 100' DEPTH SURVEY DATA 1797 METHANE (C-1) ETHANE (C-2) PROPANE (C-3) BUTANE (C-4) PENTANE (C-5) HYDROCARBON SHOWS INTERVAL LITHOLOGY NIA PRESENT LITHOLOGY NIA DAILY ACTIVITY Drill from 619' to 860'. CBU. Pull 1 stand. CIO saver sub. Drill from 860' to 1051'. Circulate hole clean. Check for SUMMARY flow, (OK). POOH to shoe. (wiper trip). Service rig & C/O grabber dies. RIH (no fill). Drill from 1051' to 1268'. PJSM. Drill from 1268' to 1845'. BIT INFORMATION NO. SIZE TYPE 1 12.25 HTC-MXC1 DRILLING PARAMETERS RATE OF PENETRATION SURFACE TORQUE WEIGHT ON BIT ROTARY RPM PUMP PRESSURE DRILLING MUD REPORT MW 9.4 VIS FC 2 SOL MWD SUMMARY INTERVAL TO TOOLS GAS SUMMARY (units) DITCH GAS CUTTING GAS INCLINATION 60.10 AZIMUTH 330.7 VERTICAL DEPTH 1514.69 INTERVAL CONDITION REASON SIN JETS IN OUT FOOTAGE HOURS TIBIC PULLED 5055724 3-18,1-16 119' STILL IN 1745 19.89 HIGH LOW AVERAGE CURRENT AVG 242.8 @ 993.00 7.8 @ 1437.00 121.3 53.73134 FTIHR 1992 @ 1851.00 5 @ 691.00 737.0 893.29700 AMPS 24 @ 1316.00 0 @ 1052.00 10.8 3.44201 KLBS @ @ RPM 1611 @ 1846.00 673 @ 1657.00 1116.4 1334.51196 PSI DEPTH 1723/1481 69 PV 16 YP 23 FL 7.8 Gels 24/58/66 CL- 400 8 SD 0.25 OIL 0/92 MBL 15 pH 9.5 Ca+ 60 CCI HIGH 126 @ 970.00 @ 24512 LOW o @ 1550.00 @ CHROMATOGRAPHY (ppm) @ 970.00 110 @ 1550.00 @ @ @ @ @ @ @ @ 8098.2 AVERAGE 41.0 TRIP GAS WIPER GAS 95u SURVEY CONNECTION GAS HIGH AVG CURRENT CURRENT BACKGROUND/AVG 15-20u Gas; 965' - 985', max gas 126u. LlTHOLOGY/REMARKS GAS DESCRIPTION EPOCH PERSONNEL ON BOARD 2 DAILY COST 1863 mil 360 rw REPORT BY John Lundy DEPTH 1927.00 YESTERDAY 1864.00 24 HOUR FOOTAGE 63 CASING INFORMATION 9518 @ 1927' DEPTH SURVEY DATA 1927(proj) 1859 METHANE (C-1) ETHANE (C-2) PROPANE (C-3) BUTANE (C-4) PENTANE (C-5) HYDROCARBON SHOWS INTERVAL LITHOLOGY NIA PRESENT LITHOLOGY NIA Drill from 1845' to 1927'. Pump hi-vis sweep & CBU. Check for flow (OK). POOH to shoe (wiper trip). Service rig. RIH (SLM) (strap difference 0.07'). CBU X2. Check for flow (OK). POOH. UD flex collars, HOS, MWD, Porly collar, stabaliozer, motor & bit. CIO bales & elevators. PJSM. RlU Weatherford slips & elevators. PIU & MIU shoe tracks. RlU Swedge & pump throw floats. RID swedge & cement hose. RIH W 95/8" CSG. Tagged at 1927'. RID Weatherford. RlU CMT hose & eirc. PJSM. Pump 5bbls water. Test lines to 3500psi. Pump 40bbls 8.4ppg spacer, 420 sx type 1 W/18% LW-6, 20% MPA-1, 1 % SMS, 0.3% CD-32, Ighs FP-66 to yield 187bbls 12.0ppg slurry (113bbls water). Drop plug W/5bbls water. Displace W 130 bbls mud. Bum p plug W 1000psi. CIP 12:40. Blead, check floats OK. RID BJ. Flush stack & lines. Drain stack. Close annular. Marathon Oil Company Ninilchik Susan Dionne #2 REPORT FOR Dave Morris DATE Jul31, 2004 TIME 24:00 BIT INFORMATION NO. SIZE TYPE 1 12.25 HTC-MXC1 DRILLING PARAMETERS RATE OF PENETRATION SURFACE TORQUE WEIGHT ON BIT ROTARY RPM PUMP PRESSURE DRILLING MUD REPORT MW 9.45 VIS FC 2 SOL MWD SUMMARY INTERVAL TO TOOLS GAS SUMMARY (units) DITCH GAS CUTTING GAS DAILY ACTIVITY SUMMARY DAILY WELLSITE REPORT U EPOCH PRESENT OPERATION Waiting on cementr INCLINATION 62.90 63.90 AZIMUTH 331.30 331.30 VERTICAL DEPTH 1575.4 1544.43 SIN 5055724 INTERVAL JETS IN OUT 3-18,1-16 119 1227 CONDITION T/B/C 1-1-WT-A-E-1-NO- TD REASON PULLED TD FOOTAGE 1908 HOURS 20.83 HIGH LOW AVERAGE CURRENT AVG 99.6 @ 1879.00 28.1 @ 1925.00 70.4 70.76074 FT/HR 1785 @ 1915.00 765 @ 1925.00 1674.4 1692.25562 AMPS 15 @ 1923.00 3 @ 1864.00 13.8 11.48356 KLBS @ @ RPM 1379 @ 1871.00 1206 @ 1925.00 1347.2 1341.25098 PSI DEPTH 1927/1575 59 PV 13 YP 14 FL 8.2 Gels 7/33/38 CL- 400 8.5 SD 0.25 OIL 0/91.5 MBL 15 pH 8.5 Ca+ 60 CCI 69 HIGH @ 1923.00 @ AVERAGE 34.9 TRIP GAS WIPER GAS 134u SURVEY CONNECTION GAS HIGH AVG CURRENT CURRENT BACKGROUND/AVG 5u LOW 15 @ 1917.00 @ CHROMATOGRAPHY (ppm) @ 1923.00 3270 @ 1917.00 @ @ @ @ @ @ @ @ 6799.2 14171 None LlTHOLOGY/REMARKS GAS DESCRIPTION EPOCH PERSONNEL ON BOARD 2 DAILY COST 1863 ML I 360 RW REPORT BY John Lundy Marathon Oil Company Ninilchik Susan Dionne #2 REPORT FOR Dave Morris DATE Aug 1, 2004 TIME 24:00 DAILY WELLSITE REPORT g EPOCH DEPTH 1927.00 YESTERDAY 1864.00 24 HOUR FOOTAGE 63 PRESENT OPERATION Testing BOPs CASING INFORMATION 9 5/8 @ 1927' DEPTH SURVEY DATA 1927(proj) 1859 METHANE (C-1) ETHANE (C-2) PROPANE (C-3) BUTANE (C-4) PENTANE (C-5) HYDROCARBON SHOWS INTERVAL LITHOLOGY NIA PRESENT LITHOLOGY NIA WOC, RID cement head. CIO bailes & elevators. RlU rig tongs. Change oil & filters #1 &2 Carrie motors. Clean pits. Work on #1 Dennison pump. NID diverter line, knife valve turnbuckles & fillup lines. Cut 9 5/8" CSG. N/D pitcher nipple. Pull diverter stack & load out. Remove starting head & make final cut on 20". PJSM. Set BOP stack rack. Make final cut on 9 5/8" & dress it. Mix mud. Install Multibowl hanger & test to 1000psi. Install OSA, spacer spool. NIU single gate. Set stack & NIU choke & kill lines, Fillup & trip tank lines. Install riser flow line turnbuckles. Function test BOPs. RlU to test BOPs. BIT INFORMATION NO. SIZE TYPE SIN NIA DRILLING PARAMETERS RATE OF PENETRATION SURFACE TORQUE WEIGHT ON BIT ROTARY RPM PUMP PRESSURE DRILLING MUD REPORT MW 9.45 VIS FC 2 SOL MWD SUMMARY INTERVAL TO TOOLS GAS SUMMARY (units) DITCH GAS CUTTING GAS DAILY ACTIVITY SUMMARY INCLINATION 62.90 63.90 AZIMUTH 331.30 331.30 VERTICAL DEPTH 1575.4 1544.43 INTERVAL JETS IN OUT CONDITION TIBIC REASON PULLED FOOTAGE HOURS HIGH LOW AVERAGE @ @ @ @ @ @ @ @ @ @ CURRENT AVG FTIHR AMPS KLBS RPM PSI 59 8.5 DEPTH 1927/1575 13 YP 14 0.25 OIL 0/91.5 FL MBL 8.2 15 Gels pH 7/33/38 CL- 8.5 Ca+ 400 60 CCI PV SD HIGH LOW AVERAGE @ @ @ @ CHROMATOGRAPHY (ppm) @ @ @ @ @ @ @ @ @ @ TRIP GAS WIPER GAS SURVEY CONNECTION GAS HIGH AVG CURRENT CURRENTBACKGROUND~VG None LlTHOLOGY/REMARKS GAS DESCRIPTION EPOCH PERSONNEL ON BOARD 4 DAILY COST 2503 ML I 360 RW REPORT BY John Lundy Marathon Oil Company Ninilchik Field Susan Dionne #2 REPORT FOR Dave Morris DATE Aug 02,2004 TIME 24:00 DAILY WELLSITE REPORT U EPOCH DEPTH 2212.00 YESTERDAY 1928.00 24 HOUR FOOTAGE 284 PRESENT OPERATION drilling ahead CASING INFORMATION 9 5/8" @ 1927 DEPTH SURVEY DATA 2202 BIT INFORMATION NO. SIZE TYPE 2 8.5 HC-HCM605 DRILLING PARAMETERS RATE OF PENETRATION SURFACE TORQUE WEIGHT ON BIT ROTARY RPM PUMP PRESSURE DRILLING MUD REPORT MW 9.0 VIS 56 FC 1 SOL 4.5 MWD SUMMARY INTERVAL TO TOOLS GAS SUMMARY (units) DITCH GAS CUTTING GAS METHANE (C-1) ETHANE (C-2) PROPANE (C-3) BUTANE (C-4) PENTANE (C-5) HYDROCARBON SHOWS INTERVAL INCLINATION 63.3 AZIMUTH 330.2 VERTICAL DEPTH 1701.68 SIN 7104182 INTERVAL JETS IN OUT 5-15s 1927 STILL IN HOURS 2.74 CONDITION TIBIC REASON PULLED FOOTAGE 284 HIGH LOW AVERAGE CURRENT AVG 199.3 @ 2079.00 14.9 @ 2008.00 130.7 23.35055 FTIHR 1682 @ 1985.00 7 @ 2151.00 1110.4 1171.65674 AMPS 22 @ 1985.00 1 @ 1944.00 9.2 2.91469 KLBS @ @ RPM 1306 @ 1985.00 551 @ 1948.00 1049.0 1085.85315 PSI DEPTH 1947/1709 PV 10 YP 18 FL 8.0 Gels 7/911 0 CL- 29000 SD TR OIL 0/95.5 MBL 1 pH 9.3 Ca+ 40 CCI 74 HIGH @ 2166.00 @ TRIP GAS WIPER GAS SURVEY CONNECTION GAS HIGH AVG CURRENT CURRENT BACKGROUND/AVG 8-10u LOW @ 1928.00 @ CHROMATOGRAPHY (ppm) @ 2166.00 354 @ 1928.00 @ @ @ @ @ @ @ @ AVERAGE 29.5 16681 6045.3 NONE LlTHOLOGY/REMARKS GAS DESCRIPTION LITHOLOGY PRESENT LITHOLOGY Beluga; Interbedded sandlsandstone conglomerate; tuffaceous claystone, tuffaceous siltstone, ashltuff and coal 10% sand, 20% tuffaceous siltstone, 60% tuffaceous claystone and 10% ash/tuff. DAILY ACTIVITY SUMMARY Test BPOEs. Upper Kellycock, annular, check valve, & #10,11,12 choke valves & dart valve 250psi low (5min)/2500psi (5min). Test Lower Kellycock, top pipe ram, outside kill & #6,8,9, choke valves, lower PR, inside kill & #1,2.5,7 CMVs. Test HCR, ann choke, floor valves, blind rams & # 3,4 CMVs, accum draw dn test. Install wear bushing. Rig up & test CSG to 2500psi/30min. PIU DP, TRQ, stand back & SLM. MIU BHA #2. Test MWD. RIH, tag CMT @ 1840'. Drlg CMT 1840' -1927'. Drlg 1927' -1947'. RT % hr, CBU. Mix spacer & displace W Flo-Pro mud. LO.T, 20.4ppg EMW EPOCH PERSONNEL ON BOARD 4 DAILY COST 2503 ML I 360 RW REPORT BY John Lundy Marathon Oil Company Ninilchik Susan Dionne #2 REPORT FOR Dave Morris DATE Aug 03, 2004 TIME 24:00 DAILY WELLSITE REPORT DEPTH 3638.00 YESTERDAY 2212.00 24 HOUR FOOTAGE 1426 CASING INFORMATION 95/8"@ 1927' DEPTH SURVEY DATA 3511 3636 BIT INFORMATION NO. SIZE TYPE 2 8.5 HC-HCM605 DRILLING PARAMETERS RATE OF PENETRATION SURFACE TORQUE WEIGHT ON BIT ROTARY RPM PUMP PRESSURE DRILLING MUD REPORT MW 9.25 VIS FC 1 SOL MWD SUMMARY INTERVAL TO TOOLS GAS SUMMARY (units) DITCH GAS CUTTING GAS METHANE (C-1) ETHANE (C-2) PROPANE (C-3) BUTANE (C-4) PENTANE (C-5) INCLINATION 66.3 65.9 SIN 7104182 INTERVAL JETS IN OUT 5-15s 1927 Still in AZIMUTH 330.1 329.2 FOOTAGE 1711 LOW @ 3140.00 @ 3252.00 @ 2756.00 @ @ 3312.00 FL 8.0 MBL 3 AVERAGE 85.8 16935.9 1.9 g EPOCH PRESENT OPERATION Drilling Ahead VERTICAL DEPTH 2265.24 2315.84 HOURS 14.15 CONDITION T/B/C REASON PULLED 55 7 HIGH 824.4 @ 3313.00 13.0 1728 @ 3343.00 -56 33 @ 3312.00 0 @ 1632 @ 3268.00 548 DEPTH 3154/2163 PV 12 YP 26 SD 0.15 OIL 0/93 AVERAGE 160.6 1151.8 6.5 CURRENT AVG 166.15323 1602.39856 4.67519 FTIHR AMPS KLBS RPM PSI 651 HIGH @ 3607.00 @ 1395.8 1583.87183 118669 62 LOW 5 @ 2305.00 @ CHROMATOGRAPHY (ppm) @ 3607.00 980 @ 2305.00 @ 3557.00 0 @ 3314.00 @ @ @ @ @ @ Gels 12/17/20 pH 9.8 CL- 28000 Ca+ 60 CCI TRIP GAS WIPER GAS 86 SURVEY CONNECTION GAS HIGH AVG CURRENT CURRENT BACKGROUND/AVG 8u HYDROCARBON SHOWS INTERVAL 5u. All are gas shows: 2565'·2628', max gas 218u: 3110' - 3126', max gas 114u; 3203' - 3252', max gas 195u; 3325' - 3342', max gas 184u; 3380' - 3390', max gas 124u; 3449' - 3460', max gas 118u; 3510' - 3630', max gas 610u: 3650' - 3750', max gas 35 LlTHOLOGY/REMARKS GAS DESCRIPTION Tyonek; Interbedded massive sandlsandstone conglomerates with thinner interbeds of tuffaceous claystone, tuffaceous siltstone, coal and ash, and occasional mass ice coal measures 70% sandlsandstone conglomerate, 30% tuffaceous claystone. LITHOLOGY PRESENT LITHOLOGY DAILY ACTIVITY SUMMARY Drilling from 2165' - 3045'. Drilling from 3045' - 3251'. CBU. POOH to shoe. Sliop drilling line. Service rig. RIH no fill. Drilling from 3313' - 3562'. EPOCH PERSONNEL ON BOARD 4 DAILY COST 2503 ML I 360 RW REPORT BY John Lundy Marathon Oil Company Ninilchik Susan Dionne #2 DAILY WELLSITE REPORT g EPOCH REPORT FOR Dave MorrislLarry Meyer DATE Aug 04, 2004 TIME 2400 DEPTH 5040.00 YESTERDAY 3638.00 24 HOUR FOOTAGE 1402 SURVEY DATA CASING INFORMATION 9 5/8" @ 1927' DEPTH INCLINATION BIT INFORMATION NO. SIZE TYPE 2 8.5 HC-HCM606 DRILLING PARAMETERS RATE OF PENETRATION SURFACE TORQUE WEIGHT ON BIT ROTARY RPM PUMP PRESSURE DRILLING MUD REPORT MW 9.4 VIS 47 FC 1 SOL 7.5 MWD SUMMARY INTERVAL TO TOOLS GAS SUMMARY (units) DITCH GAS CUTTING GAS METHANE (C-1) ETHANE (C-2) PROPANE (C-3) BUTANE (C-4) PENTANE (C-5) HYDROCARBON SHOWS INTERVAL LITHOLOGY PRESENT LITHOLOGY DAILY ACTIVITY SUMMARY SIN 7104182 INTERVAL IN OUT 1927 Still in FOOTAGE 3113 PRESENT OPERATION Drilling Ahead AZIMUTH VERTICAL DEPTH JETS 515s HIGH 824.4 @ 4930.00 8.4 1984 @ 4988.00 7 34 @ 4460.00 0 @ 2109 @ 5027.00 1150 DEPTH 4924/2894 PV 11 YP 22 SD 0.1 OIL 0/92.5 LOW @ 4185.00 @ 4188.00 @ 4832.00 @ @ 3750.00 FL 8.2 MBL 4 355 HIGH LOW @ 3712.00 5 @ 3977.00 @ @ CHROMATOGRAPHY (ppm) @ 3712.00 0 @ 5008.00 12395.9 @ 3712.00 0 @ 5008.00 0.6 @ @ @ @ @ @ HOURS 26.1 CONDITION TIBIC REASON PULLED AVERAGE 65.0 70906 17 EPOCH PERSONNEL ON BOARD 4 DAILY COST 2503 ML I 360 RW REPORT BY John Lundy AVERAGE 156.8 1471.2 7.5 CURRENT AVG 115.73211 1807.51721 8.29624 FTIHR AMPS KLBS RPM PSI 1815.6 2042.42700 Gels pH 13/18/22 9.8 CL- 30000 Ca+ 80 CCI TRIP GAS WIPER GAS 65u @ 4558' SURVEY CONNECTION GAS HIGH 20u AVG nla CURRENT 0 CURRENT BACKGROUND/AVG 10-12u All shows are gas shows: 4215' to 4248', max gas 277u; 4605' to 4620', max gas 217u; 4754' to 4725', max gas 142u; 5000' to 5042', max gas 127u; 5070' - 5095', max gas 121u; 5125' - 5145', max gas 140u; 5230' - 5300', max gas 162u. LlTHOLOGY/REMARKS GAS DESCRIPTION Tyonek; Interbedded massive salt&pepper sandslsandstones with thinner interbeds of tuffaceous claystone/siltstone, coal and ash/tuff. 40% sand/sandstone; 20 % coal; 10% tuffaceous siltstone; 20% tuffacveous claystone; 10% ashltuff. Drilling from 3562' to 4558'. CBU. POOH to 3129'. Service rig & change out grabber box. RIH, no fill. Drilling from4558' to 4930'. Marathon Oil Company Ninilchik Susan Dionne #2 REPORT FOR DATE Aug 05, 2004 TIME 24:00 DAILY WELLSITE REPORT U EPOCH SURVEY DATA CASING INFORMATION 95/8" @ 1927' DEPTH HIGH LOW 167 @ 5264.00 4 @ 5582.00 @ @ CHROMATOGRAPHY (ppm) 33188 @ 5264.00 873 @ 5582.00 11114.2 @ @ @ @ @ @ @ @ BIT INFORMATION NO. SIZE TYPE 2 8.5 HC-HCM606 DRILLING PARAMETERS RATE OF PENETRATION SURFACE TORQUE WEIGHT ON BIT ROTARY RPM PUMP PRESSURE DRILLING MUD REPORT MW 9.55 VIS FC 21 SOL MWD SUMMARY INTERVAL TO TOOLS GAS SUMMARY (units) DITCH GAS CUTTING GAS METHANE (C-1) ETHANE (C-2) PROPANE (C-3) BUTANE (C-4) PENTANE (C-5) HYDROCARBON SHOWS INTERVAL SIN 7104182 283.8 2278 44 2390 50 PV 8 SD DEPTH 5962.00 YESTERDAY 5040.00 24 HOUR FOOTAGE 922 INCLINATION JETS 515s INTERVAL IN OUT 1927 5962 FOOTAGE 4035 PRESENT OPERATION Circulating AZIMUTH VERTICAL DEPTH HIGH LOW @ 5954.00 6.3 @ 5861.00 @ 5955.00 -397 @ 5392.00 @ 5889.00 0 @ 5346.00 @ @ @ 5884.00 1228 @ 5346.00 DEPTH 5962/3133 15 YP 23 .3 OIL 0/92 FL MBL HOURS 38.461 CONDITION T/B/C REASON PULLED AVERAGE 56.7 145 units @ 5340' to 5355' LlTHOLOGY/REMARKS AVERAGE 111.8 1262.2 10.6 CURRENT AVG 180.00000 2169.47705 7.99023 FTIHR AMPS KLBS RPM PSI 2151.6 2354.71655 7.2 9 Gels 15/29/34 pH 9.9 CCI CL- 29500 Ca+ 60 TRIP GAS WIPER GAS SURVEY CONNECTION GAS HIGH AVG CURRENT CURRENT BACKGROUND/AVG not circulating GAS DESCRIPTION LITHOLOGY PRESENT LITHOLOGY Tyonek; interbedded massive salt&pepper sandslsandstones with thinner interbeds of tuffaceous claystonelsiltstone, coal and ashltuff 50% sand/sandstone; 20% tuffaceous siltstone; 20% tuffaceous claystone; 10% ashltuff DAILY ACTIVITY SUMMARY Drilling from 4930' to 5633' drilling from 5633' to 5962' CBU + Pump Pill POOH EPOCH PERSONNEL ON BOARD 4 REPORT BY Sergei Pokrovsky DAILY COST 2503 ML I 360 RW Marathon Oil Company Ninilchik Field Susan Dionne #2 DAILY WELLSITE REPORT g EPOCH REPORT FOR Larry Meyer DATE Aug 06, 2004 TIME 24:00 PRESENT OPERATION Safety Meeting DEPTH 5962.00 YESTERDAY 5040.00 24 HOUR FOOTAGE 922 CASING INFORMATION 9 5/8" @ 1927' DEPTH SURVEY DATA BIT INFORMATION NO. SIZE TYPE 2 8.5 HC-HCM606 SIN 7104182 DRILLING PARAMETERS RATE OF PENETRATION SURFACE TORQUE WEIGHT ON BIT ROTARY RPM PUMP PRESSURE DRILLING MUD REPORT MW VIS FC SOL MWD SUMMARY INTERVAL TO TOOLS GAS SUMMARY HIGH LOW AVERAGE (units) DITCH GAS @ @ CUTTING GAS @ @ CHROMATOGRAPHY (ppm) METHANE (C-1) @ @ ETHANE (C-2) @ @ PROPANE (C-3) @ @ BUTANE (C-4) @ @ PENTANE (C-5) @ @ HYDROCARBON SHOWS INTERVAL INCLINATION AZIMUTH VERTICAL DEPTH INTERVAL CONDITION REASON JETS IN OUT FOOTAGE HOURS T/B/C PULLED 5155 1927 5962 4035 38.461 HIGH LOW AVERAGE CURRENT AVG @ @ FTIHR @ @ AMPS @ @ KLBS @ @ RPM @ @ PSI DEPTH 5962/3133 PV YP FL Gels CL- SD OIL MBL pH Ca+ CCI TRIP GAS 37u off bottom @ 7900 strokes (peak gas was 44u @ 5190 stks. WIPER GAS 171u @ 7160 strokes SURVEY CONNECTION GAS HIGH AVG CURRENT CURRENT t· I r BACKGROUND/AVG no clrcu a Ing NIA LlTHOLOGY/REMARKS GAS DESCRIPTION LITHOLOGY PRESENT LITHOLOGY Tyonek; interbedded massive salt&pepper sands/sandstones with thinner interbeds of tuffaceous claystone/siltstone, coal and ashltuff 50% sand/sandstone; 20% tuffaceous siltstone; 20% tuffaceous claystone; 10% ashltuff DAILY ACTIVITY SUMMARY Wipe hole to shoe @ 1927'. Lubricate rig, top drive, crown & block carrier change line & swab out #3 mud pump. RIH to 4700', fill pipe. RIH to 5962'. Circulate & condition mud. POOH (SLM) for casing. Rabbit with wire in DP. POOH (SLM) no correction. UD jars, DCs & MTR. PJSM. Logging on DP. MIU logging tool inside of 3 Y. DP. RIH W 5"HWDP. Circulate to check flows & psi 2bpm = 180psi, 4bpm = 450psi. RIH W DP to CSG shoe (1927'). Circulate @ 4bpm = 620psi. RIH to 5952, fill pipe @ 3971'. Circulate & condition mud 5.5bpm @1050psi. Std BK 1 std, drop messenger. Pump messenger down DP to latch tool. EPOCH PERSONNEL ON BOARD 4 DAILY COST 2503 ML I 360 RW REPORT BY John Lundy Marathon Oil Company Ninilchik Field Susan Dionne #2 REPORT FOR Larry Meyer DATE Aug 07, 2004 TIME 24:00 DAILY WELLSITE REPORT U EPOCH PRESENT OPERATION Running 7" CSG DEPTH 5962.00 YESTERDAY 5962.00 24 HOUR FOOTAGE 0 SURVEY DATA CASING INFORMATION 9 5/8" @ 1927' DEPTH INCLINATION AZIMUTH BIT INFORMATION NO. SIZE TYPE SIN NIA DRILLING PARAMETERS RATE OF PENETRATION SURFACE TORQUE WEIGHT ON BIT ROTARY RPM PUMP PRESSURE DRILLING MUD REPORT MW 9.75 VIS 46 PV FC 2 SOL 9 SD MWD SUMMARY INTERVAL TO TOOLS GAS SUMMARY (units) DITCH GAS CUTTING GAS METHANE (C-1) ETHANE (C-2) PROPANE (C-3) BUTANE (C-4) PENTANE (C-5) HYDROCARBON SHOWS INTERVAL INTERVAL JETS IN OUT FOOTAGE HOURS HIGH LOW AVERAGE @ @ @ @ @ @ @ @ @ @ DEPTH 5962/3133 12 YP 22 0.2 OIL 0.1190.9 FL 8.0 Gels MBL 11 pH VERTICAL DEPTH CONDITION TIBIC REASON PULLED HIGH LOW AVERAGE CURRENT AVG FT/HR AMPS KLBS RPM PSI 12/19/23 9.6 29500 60 80 CCI @ @ @ @ CHROMATOGRAPHY (ppm) @ @ @ @ @ @ @ @ @ @ TRIP GAS . WIPER GAS SURVEY CONNECTION GAS HIGH AVG CURRENT CURRENT BACKGROUND/AVG no circulation NIA LlTHOLOGY/REMARKS GAS DESCRIPTION Tyonek; interbedded massive salt&pepper sandslsandstones with thinner interbeds of tuffaceous claystone/siltstone, coal and ash/tuff 50% sand/sandstone; 20% tuffaceous siltstone; 20% tuffaceous claystone; 10% ashltuff LITHOLOGY PRESENT LITHOLOGY DAILY ACTIVITY SUMMARY PJSM W/Reeves. Pump dry job. POOH. Logging 30 ftlmin on drill pipe. UD 3 1/2" drill pipe & logging tools. RIH VI rams to 7". Test 7" rams, door seals 250/2500psi. CIO bales. MIU Laafier fillup tool. CIO tongs & snub post. adjust tract (check floats) Continue RIH W 7" CSG as per program. EPOCH PERSONNEL ON BOARD 4 DAILY COST 2503 ML I 360 RW REPORT BY John Lundy Marathon Oil Company Ninilchik Field Susan Dionne #2 REPORT FOR Larry Meyer DATE Aug 08, 2004 TIME 24:00 DAILY WELLSITE REPORT U EPOCH DEPTH 5962.00 YESTERDAY 5962.00 24 HOUR FOOTAGE 0 PRESENT OPERATION Picking up Drill pipe SURVEY DATA CASING INFORMATION 95/8" @ 1927' DEPTH VERTICAL DEPTH DRILLING PARAMETERS RATE OF PENETRATION SURFACE TORQUE WEIGHT ON BIT ROTARY RPM PUMP PRESSURE DRILLING MUD REPORT MW 9.8 VIS 44 PV FC 2 SOL 9 SD MWD SUMMARY INTERVAL TO TOOLS GAS SUMMARY (units) DITCH GAS CUTTING GAS BIT INFORMATION NO. SIZE TYPE NIA METHANE (C-1) ETHANE (C-2) PROPANE (C-3) BUTANE (C-4) PENTANE (C-5) HYDROCARBON SHOWS INTERVAL INCLINATION AZIMUTH INTERVAL SIN JETS IN OUT CONDITION T/B/C REASON PULLED FOOTAGE HOURS HIGH LOW AVERAGE @ @ @ @ @ @ @ @ @ @ CURRENT AVG FTIHR AMPS KLBS RPM PSI DEPTH 5962/3133 13 yp 18 0.2 OIL 0.1190.9 FL 8.4 Gels MBL 11 pH 10117/22 9.4 CI 29000 Ca 160 CCI HIGH LOW AVERAGE @ @ @ @ CHROMATOGRAPHY (ppm) @ @ @ @ @ @ @ @ @ @ TRIP GAS. 21u on CMT circ. WIPER GAS SURVEY CONNECTION GAS HIGH AVG CURRENT CURRENT BACKGROUND/AVG Ou NIA LlTHOLOGY/REMARKS GAS DESCRIPTION LITHOLOGY PRESENT LITHOLOGY Tyonek; interbedded massive salt&pepper sands/sandstones with thinner interbeds of tuffaceous claystonelsiltstone, coal and ashltuff 50% sand/sandstone; 20% tuffaceous siltstone; 20% tuffaceous claystone; 10% ashltuff DAILY ACTIVITY SUMMARY Run & land 7" CSG per program W PJSM. Land @ 5942.18', FC @ 5860'. RIU BJ CMT head & circ @100 spm =68( 1 ghS FP-6L to yield 34bbls 15.8 slurry (19.2bbls mix water) top plug kick 5bbls H20 BJ CIP @0535. Bump plug 053 long bales. PIU testjt & set test plug. MIU test tools. Load out CSG tools & CSG. Load D.P on rack. Clean out trip valves, 1 through 12, annular to 250/2500psi, CIO upper & lower Kellycock. Test BOP = upper, lower & blind rams, ir performance test, pull test plug & install wear bushing. Clean pits. CIO #3 pump liners to 4". Remove top drive exter elevators. CIO oil cooler #1 pump motor, RIU to PIU D.P., pump through pop offs all three mud pumps. Mix mud. PI EPOCH PERSONNEL ON BOARD 4 DAILY COST 2503 ML I 360 RW REPORT BY John Lundy Marathon Oil Company Ninilchik Field Susan Dionne #2 REPORT FOR Larry Meyer DATE Aug 10, 2004 TIME 24:00 CASING INFORMATION 7" @ SURVEY DATA BIT INFORMATION NO. SIZE TYPE 3 4 3/4 HC-HCM404 DRILLING PARAMETERS RATE OF PENETRATION SURFACE TORQUE WEIGHT ON BIT ROTARY RPM PUMP PRESSURE DRILLING MUD REPORT MW 9.0 VIS 55 FC 1 SOL 4 MWD SUMMARY INTERVAL TO TOOLS DAILY WELLSITE REPORT U EPOCH DEPTH 6036.00 YESTERDAY 5962.00000 24 HOUR FOOTAGE 74 PRESENT OPERATION Drilling Ahead DEPTH INCLINATION AZIMUTH VERTICAL DEPTH INTERVAL CONDITION REASON SIN JETS IN OUT FOOTAGE HOURS T/B/C PULLED 7003485 6-11 S 5962 still in HIGH LOW AVERAGE CURRENT AVG 180.0 @ 5962.00000 4.9 @ 5989.00000 49.3 6.94738 FT/HR 2169 @ 5962.00000 12 @ 5998.00000 1340.1 16.92715 AMPS 8 @ 5962.00000 0 @ 6001.00000 2.3 3.38297 KLBS @ @ RPM 2354 @ 5962.00000 1121 @ 5963.00000 1679.9 1577.35095 PSI DEPTH 5987/3449 PV 10 YP 18 FL 6.2 Gels 7/9110 CL- 29000 SD 0 OIL 0.7/95.3 MBL 0 pH 9.1 Ca+ 40 CCI GAS SUMMARY (units) HIGH LOW AVERAGE DITCH GAS 29 @ 5962.00000 @ 5964.00000 9.7 CUTTING GAS @ @ CHROMATOGRAPHY (ppm) METHANE (C-1) 5977 @ 5962.00000 253 @ 5964.00000 1951.2 ETHANE (C-2) @ @ PROPANE (C-3) @ @ BUTANE (C-4) @ @ PENTANE (C-5) @ @ HYDROCARBON SHOWS NONE INTERVAL LlTHOLOGY/REMARKS TRIP GAS WIPER GAS SURVEY CONNECTION GAS HIGH AVG CURRENT CURRENT BACKGROUND/AVG 6u GAS DESCRIPTION LITHOLOGY PRESENT LITHOLOGY Tyonek; interbedded massive salt&pepper sands/sandstones with thinner interbeds of tuffaceous claystone/siltstone, coal and ash/tuff 30% sand, 50% tuffaceouis claystone, aO% tuffaceous siltstone and 10% Carbonaceous material DAILY ACTIVITY SUMMARY PIU 4" DP RIH & stand it back. Test 7" CSG to 2500psi for 30 min. PIU & MIU Baker BHA. Test MWD. P/U & RIH W 3 1/2" HWDP & jars. SLM & RIH W 4" DP. Tag float collar @ 5860'. Drill float collar & shoe tract from 5860' to 5942'. Clean out old hole from 5942' to 5962'. Drill new hole from 5962' to 5982'. CBU. Mix & pump 25bbls spacer, followed W FlowVis. LOT 1765psi, 18.8ppg (MWEq) EPOCH PERSONNEL ON BOARD 4 DAILY COST 2503 ML I 360 RW REPORT BY John Lundy Customer Ninilchik Field Wellname REPORT FOR DATE Aug 10, 2004 TIME 24:00 DAILY WELLSITE REPORT DEPTH 6370.00 YESTERDAY 6028.00 24 HOUR FOOTAGE 342 SURVEY DATA CASING INFORMATION 7" @ 5942' DEPTH INCLINATION BIT INFORMATION NO. SIZE TYPE 3 4 3/4" HC-HCM404 DRILLING PARAMETERS RATE OF PENETRATION SURFACE TORQUE WEIGHT ON BIT ROTARY RPM PUMP PRESSURE DRILLING MUD REPORT MW 9.0 VIS 50 FC 1 SOL 4 MWD SUMMARY INTERVAL TO TOOLS GAS SUMMARY (units) DITCH GAS CUTTING GAS METHANE (C-1) ETHANE (C-2) PROPANE (C-3) BUTANE (C-4) PENTANE (C-5) HYDROCARBON SHOWS INTERVAL SIN 7003485 INTERVAL JETS IN OUT 6-11s 5962' STILL IN U EPOCH PRESENT OPERATION Drilling Ahead AZIMUTH VERTICAL DEPTH FOOTAGE HOURS CONDITION TIBIC REASON PULLED HIGH LOW AVERAGE CURRENT AVG 210.3 @ 6091.00 3.6 @ 6059.00 58.7 13.30271 FTIHR 1859 @ 6029.00 9 @ 6113.00 847.4 15.96973 AMPS 12 @ 6286.00 0 @ 6182.00 2.0 7.15940 KLBS @ @ RPM 2209 @ 6316.00 1017 @ 6044.00 1802.0 1549.43677 PSI DEPTH 6362/3722 PV 12 YP 23 FL 4.8 Gels 9/12/14 CL- 28000 SD 0.1 OIL 5.0/91 MBL 1 pH 8.9 Ca+ 20 CCI EPOCH PERSONNEL ON BOARD 4 REPORT BY John Lundy DAILY COST 2503 ML I 360 RW HIGH LOW 154 @ 6344.00 5 @ 6151.00000 @ @ CHROMATOGRAPHY (ppm) 30975 @ 6344.00 761 @ 6165.00000 @ @ @ @ @ @ @ @ AVERAGE 30.6 TRIP GAS WIPER GAS SURVEY CONNECTION GAS HIGH AVG CURRENT CURRENT BACKGROUND/AVG 8u 5487.1 All gas shows: 6070' to 6100', max gas 149u; 6340' to 6345', max gas 154u; 6380' to 6390', max gas 130u. LlTHOLOGY/REMARKS GAS DESCRIPTION LITHOLOGY Tyonek; Massive interbedded salt& pepper sand/sandstone, tuffaceous claystone/siltstone, coal and ash/tuff. PRESENT LITHOLOGY 10% Sandlsandstone, 20% tuffaceous siltstone, 70% tuffaceous claystone. DAILY ACTIVITY SUMMARY Drill from 6002' to 6159'. Drill from 6159' to 6363' Marathon Oil Company Ninilchik Field Susan dionne # 2 REPORT FOR Larry Meyer DATE Aug 11,2004 TIME 24:00 DAILY WELLSITE REPORT U EPOCH DEPTH 6723.00 YESTERDAY 6370.00 24 HOUR FOOTAGE 353 PRESENT OPERATION Drilling Ahead SURVEY DATA CASING INFORMATION 7" @ 5942' DEPTH INCLINATION AZIMUTH VERTICAL DEPTH BIT INFORMATION NO. SIZE TYPE 3 43/4" HTC-HCM404 DRILLING PARAMETERS RATE OF PENETRATION SURFACE TORQUE WEIGHT ON BIT ROTARY RPM PUMP PRESSURE DRILLING MUD REPORT MW 9.2 VIS 51 FC 1 SOL 6.5 MWD SUMMARY INTERVAL TO TOOLS GAS SUMMARY (units) DITCH GAS CUTTING GAS METHANE (C-1) ETHANE (C-2) PROPANE (C-3) BUTANE (C-4) PENTANE (C-5) HYDROCARBON SHOWS INTERVAL INTERVAL CONDITION REASON SIN JETS IN OUT FOOTAGE HOURS TIBIC PULLED 7003485 6-11s 5962' Still In 761 33.44 HIGH LOW AVERAGE CURRENT AVG 209.3 @ 6533.00 4.8 @ 6602.00 59.5 10.65089 FTIHR 1765 @ 6720.00 3 @ 6476.00 869.2 14.94946 AMPS 201 @ 6566.00 0 @ 6598.00 5.8 0.26166 KLBS @ @ RPM 2141 @ 6533.00 19 @ 6478.00 1933.1 1986.33923 PSI DEPTH 6696/3996 PV 12 YP 23 FL 4.0 Gels 8/10/12 CL- 30000 SD 0.15 OIL 5/88.5 MBL 2.5 pH 9.8 Ca+ 40 CCI HIGH LOW 140 @ 6444.00 5 @ 6636.00 @ @ CHROMATOGRAPHY (ppm) 27816 @ 6444.00 737 @ 6621.00 @ @ @ @ @ @ @ @ AVERAGE 25.5 TRIP GAS WIPER GAS 34u @ 6533' SURVEY CONNECTION GAS HIGH AVG CURRENT CURRENT BACKGROUND/AVG 8u 5377.0 Gas, 6440' TO 6450', max gas 140u LlTHOLOGY/REMARKS GAS DESCRIPTION Tyonek; Massive interbeds of salt & pepper sand/sandstone, tuffaceous siltstone/claystone, coal, and ash/tuff. LITHOLOGY PRESENT LITHOLOGY DAILY ACTIVITY SUMMARY 60% Sand/sandstone; 10% tuffaceous siltstone; 10% tuffaceous claystone; 20% ash/tuff. Drill from 6363' to 6533'. Circulate bottoms up. POOH to shoe @ 5900'. Service. RIH, no fill. Drilling from 6583' to 6719'. EPOCH PERSONNEL ON BOARD 4 DAILY COST 2503 ML I 360 RW REPORT BY John Lundy Marathon Oil Company Ninilchik Field Susan dionne # 2 REPORT FOR DATE Aug 12, 2004 TIME 24:00 DAILY WELLSITE REPORT U EPOCH DEPTH 7248.00 YESTERDAY 6723.00 24 HOUR FOOTAGE 525 PRESENT OPERATION Drilling Ahead SURVEY DATA CASING INFORMATION 7" @ 5942' DEPTH AZIMUTH BIT INFORMATION NO. SIZE TYPE 3 4 3/4 HC-HCM404 DRILLING PARAMETERS RATE OF PENETRATION SURFACE TORQUE WEIGHT ON BIT ROTARY RPM PUMP PRESSURE DRILLING MUD REPORT MW 9.15 VIS FC 1 SOL MWD SUMMARY INTERVAL TO TOOLS GAS SUMMARY (units) DITCH GAS CUTTING GAS METHANE (C-1) ETHANE (C-2) PROPANE (C-3) BUTANE (C-4) PENTANE (C-5) HYDROCARBON SHOWS INTERVAL INCLINATION VERTICAL DEPTH SIN 7003485 INTERVAL JETS IN OUT 6"11s 5962' Still in CONDITION TIBIC REASON PULLED FOOTAGE 1286 HOURS 50.3 HIGH 271.4 @ 6756.00 3.5 1961 @ 7218.00 11 12 @ 6783.00 0 @ 2338 @ 7086.00 1655 DEPTH 7216/4483 51 PV 13 YP 24 6 SD 0.15 OIL 5/89 CURRENT AVG 75.09973 1829.90308 0.41146 FTIHR AMPS KLBS RPM PSI LOW @ 6816.00 @ 6783.00 @ 6724.00 @ @ 6969.00 AVERAGE 81.4 1217.0 3.6 2124.0 2072.75073 Gels 10/13/14 pH 9.6 CL- 29500 CaT 80 FL 3.8 MBL 4 CCI HIGH LOW AVERAGE 594 @ 6978.00 3 @ 6820.00 76.6 TRIP GAS @ @ WIPER GAS CHROMATOGRAPHY (ppm) SURVEY 98920 @ 6978.00 657 @ 6869.00 12915.2 CONNECTION GAS HIGH 33 @ 6979.00 0 @ 6860.00 1.5 AVG 19 @ 6979.00 0 @ 6963.00 0.6 CURRENT @ @ CURRENT BACKGROUND/AVG 10 -12u @ @ All are gas shows: 6755' to 6782', max gas 203u; 6895' to 6905', max gas 261 u; 6970' to 7010', max gas 594u; 7045' to 7075', max gas 269u; 7103' to 7145', max gas 274u; 7220' to 7300' max gas 152'; 7310' to 7345', max gas 473u. LlTHOLOGY/REMARKS GAS DESCRIPTION LITHOLOGY PRESENT LITHOLOGY Tyonek: Massive interbedded Sand/sandstone, tuffaceous siltstone and tuffaceous claystone with thin discontinuous coaly intervals and ashltuf throughout. 60% Sand/sandstone; 30% tuffaceous siltstone; 10% ashltuff DAILY ACTIVITY SUMMARY Drilling from 6719' to 6918'. Drilling from 6918' to 7216'. EPOCH PERSONNEL ON BOARD 4 DAILY COST 2503 ML I 360 RW REPORT BY John Lundy Marathon Oil Company Ninilchik Field Susan dionne # 2 REPÒRT FOR Larry Meyer DATE Aug 13, 2004 TIME 24:00 DAILY WELLSITE REPORT ~ EPOCH DEPTH 7969.00 YESTERDAY 7249.00 24 HOUR FOOTAGE 720 PRESENT OPERATION Drilling Ahead SURVEY DATA CASING INFORMATION 7" @ 5942' DEPTH VERTICAL DEPTH BIT INFORMATION NO. SIZE TYPE 3 4 3/4" HC-HCM404 DRILLING PARAMETERS RATE OF PENETRATION SURFACE TORQUE WEIGHT ON BIT ROTARY RPM PUMP PRESSURE DRILLING MUD REPORT MW 9.25 VIS FC 1 SOL MWD SUMMARY INTERVAL TO TOOLS GAS SUMMARY (units) DITCH GAS CUTTING GAS METHANE (C-1) ETHANE (C-2) PROPANE (C-3) BUTANE (C-4) PENTANE (C-5) HYDROCARBON SHOWS INTERVAL INCLINATION AZIMUTH SIN 7003485 INTERVAL JETS IN OUT 6-115 5962' Still in REASON PULLED FOOTAGE HOURS CONDITION TIBIC HIGH LOW AVERAGE CURRENT AVG 234.8 @ 7589.00 5.0 @ 7968.00 86.4 8.21000 FTIHR 2053 @ 7795.00 12 @ 7341.00 1667.0 22.16700 AMPS 13 @ 7491.00 0 @ 7857.00 4.0 0.47700 KLBS @ @ RPM 2457 @ 7718.00 1497 @ 7589.00 2274.4 2210.99500 PSI DEPTH 7968/5144 51 PV 13 YP 24 FL 3.6 Gels 9/13/25 CL- 30500 6 SD 0.15 OIL 5/89 MBL 5 pH 9.7 Ca+ 60 CCI HIGH 473 @ 7326.00 @ 96228 31 LOW 7 @ 7969.00 @ CHROMATOGRAPHY (ppm) @ 7326.00 1411 @ 7889.00 @ 7796.00 0 @ 7372.00 @ @ @ @ @ @ 14433.3 1.9 AVERAGE 74.6 TRIP GAS WIPER GAS 0 SURVEY CONNECTION GAS HIGH AVG CURRENT CURRENT BACKGROUND/AVG 8-10u All are gas shows; 7392' to 7430', max gas 211u; 7716' to 7840', max gas 319u; 8020'to 8090', max gas 259u. LlTHOLOGY/REMARKS GAS DESCRIPTION LITHOLOGY Tyonek; Massive interbedded tuffaceous siltstonelclaystone, sandlsandstone, coal and ash. PRESENT LITHOLOGY 40% sandlsandstone, 20% tuffsceous siltstone, 30% tuffaceous claystone, 10% ash. DAILY ACTIVITY Drill from 7216' to 7344'. Repair mudline union seal. Drill from 7344' to 7465'. CBU. POOH to 7275'. BOP test SUMMARY W/tripping. Repair hydro hose. Wipe hole 15 stds to 6535'. Service & clean rig. RIH (no fill). Drilling from 7465' to 7967' . EPOCH PERSONNEL ON BOARD 4 DAILY COST 2503 ML I 360 RW REPORT BY John Lundy Marathon Oil Company Ninilchik Field Susan dionne # 2 REPORT FOR Larry Meyer DATE Aug 14, 2004 TIME 24:00 DAILY WELLSITE REPORT DEPTH 8552.00 YESTERDAY 7969.00 24 HOUR FOOTAGE 583 SURVEY DATA CASING INFORMATION 7" @ 5942' DEPTH INCLINATION BIT INFORMATION NO. SIZE TYPE 3 4 3/4 HC-HCM404 DRILLING PARAMETERS RATE OF PENETRATION SURFACE TORQUE WEIGHT ON BIT ROTARY RPM PUMP PRESSURE DRILLING MUD REPORT MW 9.2 VIS 52 FC 1 SOL 6 MWD SUMMARY INTERVAL TO TOOLS GAS SUMMARY (units) DITCH GAS CUTTING GAS METHANE (C-1) ETHANE (C-2) PROPANE (C-3) BUTANE (C-4) PENTANE (C-5) HYDROCARBON SHOWS INTERVAL SIN 7003485 INTERVAL JETS IN OUT 6-11s 5962 Still In AZIMUTH FOOTAGE 2590 LOW @ 8409.00 @ 8282.00 @ 8353.00 @ @ 8155.00 FL 3.8 Gels MBL 5 pH AVERAGE 76.7 17751.1 4.4 1.8 U EPOCH PRESËNT OPERATION Drilling Ahead VERTICAL DEPTH HOURS 82.8 CONDITION TIBIC REASON PULLED HIGH 201.8 @ 8370.00 2.6 2149 @ 8358.00 13 18 @ 8154.00 0 @ 2713 @ 8273.00 1586 DEPTH 8517/5647 PV 14 YP 27 SD 0.15 OIL 5/89 544 HIGH @ 8224.00 @ AVERAGE 62.8 1557.7 3.6 CURRENT AVG 65.39063 1921.47778 4.34825 FT/HR AMPS KLBS RPM PSI 177584 98 60 LOW 6 @ 7971.00 @ CHROMATOGRAPHY (ppm) @ 8224.00 1253 @ 7971.00 @ 8224.00 0 @ 8265.00 @ 8224.00 0 @ 8265.00 @ @ @ @ 2354.8 2491.60791 12/15/17 9.4 CL- 29000 Ca+ 60 CCI TRIP GAS WIPER GAS SURVEY CONNECTION GAS HIGH AVG CURRENT CURRENT BACKGROUND/AVG 20u All are gas shows: 8130' to 8140', max gas 205u; 8215' to 8245', max gas 545u; 8320' to 8345', max gas 249u; 8365' to 8395', max gas 284u; 8460' to 8550', max gas 360u; 8640' to 8700' max gas 618u. LlTHOLOGY/REMARKS GAS DESCRIPTION LITHOLOGY Tyonek: massive interbedded Sandstone, tuffaceous siltstone, tuffaceous claystone, ash and coal. PRESENT LITHOLOGY 50% sand; 20% tuffaceous siltstone, 20% tuffaceous cl;aystone, 10% ash. DAILY ACTIVITY SUMMARY Drill from7967' to 8217'. Drill from 8217' to 8527'. EPOCH PERSONNEL ON BOARD 4 DAILY COST 2503 ML I 360 RW REPORT BY John Lundy Marathon OPil Company Ninilchik Field Susan Dionne #2 REPORT FOR Larry Meyer DATE Aug 15, 2004 TIME 24:00 DAILY WELLSITE REPORT DEPTH 9269.00 YESTERDAY 8552.00 24 HOUR FOOTAGE 717 SURVEY DATA CASING INFORMATION 7" @ 5942' DEPTH INCLINATION BIT INFORMATION NO. SIZE TYPE 3 4 3/4 HC-HCM404 DRILLING PARAMETERS RATE OF PENETRATION SURFACE TORQUE WEIGHT ON BIT ROTARY RPM PUMP PRESSURE DRILLING MUD REPORT MW 9.35 VIS 51 FC 1 SOL 7.5 MWD SUMMARY INTERVAL TO TOOLS GAS SUMMARY (units) DITCH GAS CUTTING GAS METHANE (C-1) ETHANE (C-2) PROPANE (C-3) BUTANE (C-4) PENTANE (C-5) HYDROCARBON SHOWS INTERVAL LITHOLOGY PRESENT LITHOLOGY SIN 7003485 INTERVAL JETS IN OUT 6-115 5962 Still In AZIMUTH FOOTAGE 3307 LOW @ 9028.00 @ 8900.00 @ 8918.00 @ @ 8651.00 FL 4.4 Gels MBL 7.5 pH AVERAGE 102.4 20511.7 11.9 2.7 U EPOCH PRESENT OPERATION Drilling Ahead VERTICAL DEPTH HOURS 98.7 CONDITION TIBIC REASON PULLED HIGH 224.1 @ 8920.00 2.3 2429 @ 8845.00 10 31 @ 9245.00 0 @ 3046 @ 8920.00 1995 DEPTH 9253/6323 PV 12 YP 30 SD TR OIL 0/87.5 618 HIGH @ 8663.00 @ DAILY ACTIVITY SUMMARY Drilling from 8527' to 8960'. Drilling from 8960' to 9257'. 123112 95 40 LOW 11 @ 9254.00 @ CHROMATOGRAPHY (ppm) @ 8663.00 2534 @ 9254.00 @ 9182.00 0 @ 8635.00 @ 8649.00 0 @ 9155.00 @ @ @ @ AVERAGE 72.6 1911.3 5.1 CURRENT AVG 55.55753 2123.27271 8.26061 FTIHR AMPS KLBS RPM PSI EPOCH PERSONNEL ON BOARD 4 DAILY COST 2503 ML I 360 RW REPORT BY John Lundy 2538.3 2584.58691 11/15/17 9.6 CL- 29000 Ca+ 60 CCI TRIP GAS WIPER GAS SURVEY CONNECTION GAS HIGH AVG CURRENT CURRENT BACKGROUND/AVG 15u All are gas shows; 8700' to 8774', max gas 312u; 8795' to 8836', max gas 270u; 9040' to 9065', max gas 250u; 9175' to 9205', max gas 326u; 9320' to 9334', max gas 525u. LlTHOLOGY/REMARKS GAS DESCRIPTION Tyonek: massive interbedded tuffaceous siltstonelclaystone, sandstonelsandstone conglomerate, coal and ash/tuff. 40% sandstone, 20% tuffaceous siltstone, 20% tuffaceous claystone, 10% ash, 10% coal. Marathon Oil Company Ninilchik Field Susan dionne # 2 REPORT FOR Larry Meyer DATE Aug 16, 2004 TIME 24:00 DAILY WELLSITE REPORT U EPOCH DEPTH 9584.00 YESTERDAY 9269.00 24 HOUR FOOTAGE 315 PRESENT OPERATION Tripping for MWD SURVEY DATA CASING INFORMATION 7" @ 5942' DEPTH AZIMUTH INCLINATION VERTICAL DEPTH BIT INFORMATION INTERVAL CONDITION REASON NO. SIZE TYPE SIN JETS IN OUT FOOTAGE HOURS TIBIC PULLED 3(RR) 43/4 HC_HCM404 7003485 6-11s 5962 RR 3622 105 MWD DRilLING PARAMETERS HIGH lOW AVERAGE CURRENT AVG RATE OF PENETRATION 453.1 @ 9431.00 2.2 @ 9525.00000 52.9 34.75826 FTIHR SURFACE TORQUE 2568 @ 9431.00 10 @ 9531.00 1810.0 2114.64941 AMPS WEIGHT ON BIT 11 @ 9431.00 0 @ 9526.00 4.9 0.00000 KLBS ROTARY RPM @ @ RPM PUMP PRESSURE 2877 @ 9487.00 1866 @ 9273.00 2301.6 2517.45459 PSI DRILLING MUD REPORT DEPTH 9584/6622 MW 9.4 VIS 59 PV 13 YP 33 Fl 4.4 Gels 11/17/18 Cl- 29500 FC 1 SOL 7 SD 0.15 OIL 5/88 MBl 8 pH 9.4 Ca+ 60 CCI MWD SUMMARY INTERVAL TO TOOLS GAS SUMMARY (units) DITCH GAS CUTTING GAS METHANE (C-1) ETHANE (C-2) PROPANE (C-3) BUTANE (C-4) PENTANE (C-5) HYDROCARBON SHOWS INTERVAL HIGH LOW AVERAGE 707 @ 9551.00 8 @ 9306.00 74.2 TRIP GAS 0 @ 9584.00 0 @ 9584.00 0.0 WIPER GAS CHROMATOGRAPHY (ppm) SURVEY 140616 @ 9550.00 1727 @ 9306.00 14940.6 CONNECTION GAS HIGH 60u 147 @ 9551.00 0 @ 9303.00 9.1 AVG 0 49 @ 9551.00 0 @ 9524.00000 2.6 CURRENT 0 0 @ 9584.00 0 @ 9584.00 0.0 CURRENTBACKGROUND~VG15 0 @ 9584.00 0 @ 9584.00 0.0 All are gas shows: 9323' to 9333', max gas 525u; 9425' to 9440', max gas 360u; 9534' to 9555', max gas 707u. ·LlTHOLOGY/REMARKS GAS DESCRIPTION LITHOLOGY Tyonek; masive interbedded tuffaceous siltstone/claystone, sanlsandstone, coal and ash. PRESENT LITHOLOGY 10% Sandstone; 30% siltstone/tuffaceous siltstone; 30% cJaystone/tuffaceous cJaystone; 30% ash. Drill from 9257' to 9585'. PJSM. CBU X2. Check for flow. Pump slug. POOH. UD motor. Pull wear bushing. Set test plug. Test upper, lower and blind rams, upper & lower Kelleycock, dart and safety valves, check valve, inside & outside kill valves, inside choke, HCR, CMV 1 thru 12 to 25012500psi. Accumulator performance test. Pull test plug. Install wear bushing. PIU new mud motor & re-set AKO. Orientate MWD. RIH with BHA. DAILY ACTIVITY SUMMARY EPOCH PERSONNEL ON BOARD 4 DAILY COST 2503 ML I 360 RW REPORT BY John Lundy Marathon Oil Company Ninilchik Field Susan dionne # 2 REPORT FOR Larry Meyer DATE Aug 17,2004 TIME 24:00 DAILY WELLSITE REPORT DEPTH 10019.00 YESTERDAY 9585.00 24 HOUR FOOTAGE 434 SURVEY DATA CASING INFORMATION 7" @ 5942' DEPTH AZIMUTH BIT INFORMATION NO. SIZE TYPE 3RR 4 3/4 HC-HCM404 DRILLING PARAMETERS RATE OF PENETRATION SURFACE TORQUE WEIGHT ON BIT ROTARY RPM PUMP PRESSURE DRILLING MUD REPORT MW 9.5 VIS 52 FC 1 SOL 8 MWD SUMMARY INTERVAL TO TOOLS GAS SUMMARY (units) DITCH GAS CUTTING GAS METHANE (C-1) ETHANE (C-2) PROPANE (C-3) BUTANE (C-4) PENTANE (C-5) HYDROCARBON SHOWS INTERVAL LITHOLOGY PRESENT LITHOLOGY DAILY ACTIVITY SUMMARY INCLINATION SIN 7003485 INTERVAL JETS IN OUT 6-11s 9585 STILL IN FOOTAGE 434 U EPOCH PRESENT OPERATION Drilling Ahead VERTICAL DEPTH HOURS 10.8 CONDITION TIBIC REASON PULLED HIGH LOW AVERAGE CURRENT AVG 218.2 @ 9588.00 2.8 @ 9598.00 67.0 135.80730 FT/HR 2488 @ 9838.00 12 @ 9587.00 2023.0 2395.85352 AMPS 17 @ 9648.00 0 @ 9597.00 4.9 5.01843 KLBS @ @ RPM 2998 @ 9950.00 1848 @ 9997.00 2666.9 2531.87769 PSI DEPTH 9967/6969 PV 12 YP 33 FL 4.4 Gels 12/15/17 CL- 30500 SD 0.15 OIL 5/87 MBL 8 pH 9.7 Ca+ 60 CCI 532 AVERAGE 92.6 HIGH LOW @ 9917.00 3 @ 9618.00 @ @ CHROMATOGRAPHY (ppm) @ 9779.00 955 @ 9598.00 @ 9739.00 0 @ 9670.00 @ 9739.00 0 @ 9753.00 @ @ @ @ All are gas shows; 9688' to 9710', max gas 442u; 9738' to 9785', max gas 520u; 9900' to 9925', max gas 532u. LlTHOLOGY/REMARKS GAS DESCRIPTION 669307 114 123 28448.2 10.3 3.3 TRIP GAS 2321u WIPER GAS SURVEY CONNECTION GAS HIGH 40u AVG 20u CURRENT 45u CURRENTBACKGROUND~VG12U Tyonek: Massive interbedded snad/sandstone, tuffaceou siltstone/siltstone, tuffaceous claystone/claystone, coal and ash. 60% sand, 10% tuffaceous siltstone, 10% tuffaceous claystone/cJaystone, 20% ash. PJSM. RIH W 4" DP to shoe. Slip & cut drill line. Cut 180', slip 146'. Adjust CUM & check. RIH to 9595' (no till). MWD computer down, repair same. Drill from 9585' to 9605' Drill from 9605' to 10000' EPOCH PERSONNEL ON BOARD 4 DAILY COST 2503 ML I 360 RW REPORT BY John Lundy Marathon Oil Company Ninilchik Field DAILYWELLSITE REPORT U EPOCH Susan dionne # 2 REPORT FOR Dave Morris/lLarry Meyer DATE Aug 18, 2004 TIME 24:00 DEPTH 10642.00 YESTERDAY 10020.00 24 HOUR FOOTAGE 622 SURVEY DATA CASING INFORMATION 7"@5942' DEPTH INCLINATION BIT INFORMATION NO. SIZE TYPE 3RR 4.3/4 HC-HCM404 METHANE (C-1) ETHANE (C-2) PROPANE (C-3) BUTANE (C-4) PENTANE (C-5) HYDROCARBON SHOWS INTERVAL LITHOLOGY PRESENT LITHOLOGY SIN 7003485 INTERVAL JETS IN OUT 6-11s 9585 Still In HIGH 242.8 @ 10272.00 2.5 3102 @ 10275.00 51 15 @ 10456.00 0 @ 3055 @ 10357.00 1675 DEPTH 10657/7600 PV 12 YP 32 SD 0.2 OIL 5/87 694 HIGH @ 10269.00 3 @ PRESENT OPERATION Trip for PP/hole in DP AZIMUTH FOOTAGE 1056 LOW @ 10039.00 @ 10046.00 @ 10333.00 @ @ 10051.00 FL 4.0 Gels MBL 9 pH AVERAGE 112.0 22002.3 15.2 3.3 VERTICAL DEPTH HOURS 26.5 CONDITION TIBIC REASON PULLED 128117 127 37 LOW @ 10044.00 @ CHROMATOGRAPHY (ppm) @ 10266.00 78 @ 10046.00 @ 10266.00 0 @ 10031.00 @ 10266.00 0 @ 10225.00 @ @ @ @ AVERAGE 70.7 2324.2 5.5 CURRENT AVG 37.75635 2311 .15356 7.14540 FTIHR AMPS KLBS RPM PSI DRILLING PARAMETERS RATE OF PENETRATION SURFACE TORQUE WEIGHT ON BIT ROTARY RPM PUMP PRESSURE DRILLING MUD REPORT MW 9.5 VIS 53 FC 1 SOL 8 MWD SUMMARY INTERVAL TO TOOLS GAS SUMMARY (units) DITCH GAS CUTTING GAS 2777.9 2855.19019 13/16/18 9.9 CL- 29000 Ca+ 60 CCI TRIP GAS WIPER GAS SURVEY CONNECTION GAS HIGH AVG CURRENT CURRENT BACKGROUND/AVG 30u Gas shows: 10070' to 10085', max gas 345u; 10115' to 10195', max gas 560u; 10235' to 10330', max gas 694'; 10365' to 10390', max gas 229u; 10420' to 10430', max gas 259u; Two gas shows with trace fluorescence and slight cut 10555' to 10580', max gas 252u; 10620' to 10633', max gas 236u. LlTHOLOGY/REMARKS GAS DESCRIPTION Tyonek; interbedded sand/sandstone/sandstone congl;omerate, tuffaceous siltstone/siltstone, tuffaceous claystone/claystone, coal and ash. 40% Sand/sandstone/sandstone conglomerate, 10% conglomerate, 20% siltstone/tuffaceous siltstone, 10% claystone, 20% ashltuff DAILY ACTIVITY SUMMARY Drilling from 10000' to 10360'. Drilling from 10360' to 10657'. POOH for hole in pipe. EPOCH PERSONNEL ON BOARD 4 DAILY COST 2503 ML I 360 RW REPORT BY John Lundy Marathon Oil Company Ninilchik Field Susan dionne # 2 REPORT FOR Dave Morris DATE Aug 19, 2004 TIME 24:00 DAILY WELLSITE REPORT U EPOCH DEPTH 11094.00 YESTERDAY 10658.00 24 HOUR FOOTAGE 436 PRESENT OPERATION Wiper trip, POOH. SURVEY DATA CASING INFORMATION 7" @ 5942' DEPTH BIT INFORMATION NO. SIZE 3RR 4 3/4 3(Cumulative) DRILLING PARAMETERS RATE OF PENETRATION SURFACE TORQUE WEIGHT ON BIT ROTARY RPM PUMP PRESSURE DRILLING MUD REPORT MW 9.7 VIS FC 1 SOL MWD SUMMARY INTERVAL TO TOOLS GAS SUMMARY (units) DITCH GAS CUTTING GAS METHANE (C-1) ETHANE (C-2) PROPANE (C-3) BUTANE (C-4) PENTANE (C-5) HYDROCARBON SHOWS INTERVAL LITHOLOGY PRESENT LITHOLOGY TYPE HC-HCM404 INCLINATION AZIMUTH VERTICAL DEPTH INTERVAL CONDITION REASON SIN JETS IN OUT FOOTAGE HOURS TIBIC PULLED 7003485 6-11s 9585 11094 1509 38.4 TO 5132 143.4 54 9.4 HIGH LOW AVERAGE CURRENT AVG 235.9 @ 10672.00 7.4 @ 10967.00 55.6 35.89453 FTIHR 3041 @ 10836.00 6 @ 10669.00 2527.6 2486.33130 AMPS 33 @ 10667.00 0 @ 10824.00 5.7 6.90293 KLBS 0 @ 0 0 @ 0 0 0 RPM 3131 @ 10835.00 24 @ 10670.00 2808.0 2874.82031 PSI DEPTH 11094/8007 PV 13 YP 32 FL 4.2 Gels 15120/24 CL- 30000 SO 0.25 OIL 5.5/85 MBL 11 pH 9.7 Ca+ 60 CCI HIGH 383 @ 10718.00 @ 66791 129 100 LOW 6 @ 10990.00 @ CHROMATOGRAPHY (ppm) @ 10718.00 200 @ 10660.00 @ 10677.00 0 @ 10970.00 @ 10741.00 0 @ 10865.00 @ @ @ @ 12055.1 17.1 5.3 AVERAGE 66.7 TRIP GAS WIPER GAS SURVEY CONNECTION GAS HIGH 25u AVG TRACE CURRENT 0 CURRENT BACKGROUND/AVG 25-40u All are gas shows; 10655' - 10680', max gas lost in trip gas of 1950u; 10690' -= 10750', max gas 361u; 10802'- 10825', max gas 184u; 11025' -11035', max gas 182u; 11083' - 11094', max gas 177u. LlTHOLOGY/REMARKS GAS DESCRIPTION Tyonek; interbedded sand/sandstone/sandstone conglomerate, tuffaceous siltstone/siltstone, tuffaceous claystone/cJaystone, coal and ash. 30% Sand/sandstone conglomerate; 20% siltstone/tuffaceous siltstone; 20% tuffaceous claystone/claystone; 30% ash/tuff DAILY ACTIVITY PJSM. POOH for wash out. Hole at top of stand 73. Replace bad it & test MWD. Service rig & top drive. RIH. SUMMARY Check pressure every 10 stds, (no fill). Drill from 10653' to 10890'. Drill from 10890' to 11094' (TD). Circ hole clean. Check for flow. Pump dry job. POOH (wiper trip to shoe). EPOCH PERSONNEL ON BOARD 4 DAILY COST 2503 ML I 360 RW REPORT BY John Lundy Marathon Oil Company Ninilchik Field Susan dionne # 2 REPORT FOR Dave Morris DATE Aug 20, 2004 TIME 24:00 DAILY WELLSITE REPORT g EPOCH DEPTH 11094.00 YESTERDAY 11094 24 HOUR FOOTAGE 0 PRESENT OPERATION cbu prior to E-Logs SURVEY DATA CASING INFORMATION 7" @ 5942' DEPTH AZIMUTH BIT INFORMATION NO. SIZE 3RR 4 3/4 3(Cumulative) DRILLING PARAMETERS RATE OF PENETRATION SURFACE TORQUE WEIGHT ON BIT ROTARY RPM PUMP PRESSURE DRILLING MUD REPORT MW 9.85 VIS 56 PV FC 1 SOL 10 SD MWD SUMMARY INTERVAL TO TOOLS GAS SUMMARY (units) DITCH GAS CUTTING GAS METHANE (C-1) ETHANE (C-2) PROPANE (C-3) BUTANE (C-4) PENTANE (C-5) HYDROCARBON SHOWS INTERVAL INCLINATION VERTICAL DEPTH TYPE HC-HCM404 INTERVAL JETS IN OUT 6-11s 9585 11094 5962 11094 CONDITION TIBIC REASON PULLED TO SIN 7003485 FOOTAGE 1509 5132 HOURS 38.4 143.4 HIGH LOW AVERAGE CURRENT AVG @ @ FTIHR @ @ AMPS @ @ KlBS @ @ RPM @ @ PSI DEPTH 11094/8007 14 YP 31 FL 4.4 Gels 15122/25 CL- 30000 0.15 OIL 5.5/84.5 MBl 12 pH 9.7 Ca+ 60 CCI HIGH LOW AVERAGE @ @ @ @ CHROMATOGRAPHY (ppm) @ @ @ @ @ @ @ @ @ @ TRIP GAS 232 WIPER GAS 725 SURVEY CONNECTION GAS HIGH AVG CURRENT CURRENTBACKGROUND~VG LlTHOlOGY/REMARKS GAS DESCRIPTION Tyonek; interbedded sandlsandstone/sandstone conglomerate, tuffaceous siltstone/siltstone, tuffaceous claystone/claystone, coal and ash. 30% Sand/sandstone conglomerate; 20%siltstone/tuffaceous siltstone; 20% tuffaceous claystone/claystone; 30% ash/tuff PJSM. POOH to shoe. RIH to 11094'. Circulate hole clean. Check for flow. Pump dry job. POOH (SLM). POOH W/4" DP (SlM» UD HWDP, jars, Non Magnetics, MWD, motor & bit. Clean rig floor. PJSM W/Reeves logging Co. PIU & M/U BHA & load logging tools. Circulate @ 245'1 170spm, 280 psi & 140 spm. 600psi. RIH W 4" DP. CBU 190 spm/2000psi. LITHOLOGY PRESENT LITHOLOGY DAilY ACTIVITY SUMMARY EPOCH PERSONNEL ON BOARD 3 DAILY COST 2223 ML I 360 RW REPORT BY John Lundy Marathon Oil Company Ninilchik Field Susan dionne # 2 REPORT FOR Dave Morris DATE Aug 21, 2004 TIME 24:00 DAILY WELLSITE REPORT DEPTH 11094.00 YESTERDAY 11094 24 HOUR FOOTAGE 0 SURVEY DATA CASING INFORMATION 7" @ 5942' DEPTH AZIMUTH BIT INFORMATION NO. SIZE TYPE SIN DRILLING PARAMETERS RATE OF PENETRATION SURFACE TORQUE WEIGHT ON BIT ROTARY RPM PUMP PRESSURE DRILLING MUD REPORT MW 9.7 VIS FC 1 SOL MWD SUMMARY INTERVAL TO TOOLS GAS SUMMARY (units) DITCH GAS CUTTING GAS METHANE (C-1) ETHANE (C-2) PROPANE (C-3) BUTANE (C-4) PENTANE (C-5) HYDROCARBON SHOWS INTERVAL INCLINATION INTERVAL JETS IN OUT FOOTAGE HOURS HIGH LOW AVERAGE @ @ @ @ @ @ @ @ @ @ 50 9 PV SD DEPTH 11094/8007 13 YP 32 0.1 OIL 5/86 4.8 11 Gels pH U EPOCH PRESENT OPERATION Circulating VERTICAL DEPTH CONDITION TIBIC REASON PULLED FL MBL HIGH LOW AVERAGE CURRENT AVG FTIHR AMPS KLBS RPM PSI 12/16/18 CL- 9.6 Ca+ 29500 60 CCI @ @ @ @ CHROMATOGRAPHY (ppm) @ @ @ @ @ @ @ @ @ @ LlTHOLOGY/REMARKS TRIP GAS 350 WIPER GAS SURVEY CONNECTION GAS HIGH AVG CURRENT CURRENTBACKGROUND~VG GAS DESCRIPTION Tyonek; interbedded sandlsandstonelsandstone conglomerate, tuffaceous siltstone/siltstone, tuffaceous claystone/claystone, coal and ash. 30% Sandlsandstone conglomerate; 20%siltstone/tuffaceous siltstone; 20% tuffaceous claystone/claystone; 30% ash/tuff PJSM. POOH to 10978', pump messenger @ 107 SPM/3200 strokes, 70 spm to deploy logging tools @ 1500psi. Pump dry job. POOH logging W Reeves from 11083' to 3274'. POOH. UD logging tools. PIU BHA. RIH to shoe. CBU. PJSM. Slip 34' drilling line. Reset & check COM. Service carrier, crown, blocks and top drive. Condition mud. Cut mud weight from 10ppg to 9.6ppg. RIH from 5920' to 11094', (no till). Circulate & condition mud @ 285 spm/2300 psi. LITHOLOGY PRESENT LITHOLOGY DAILY ACTIVITY SUMMARY EPOCH PERSONNEL ON BOARD 3 DAILY COST 2223 ML I 360 RW REPORT BY John Lundy
